|Uniform Grant Guidance and Green Book Training
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Uniform Grant Guidance/Green Book
Changes and Implementation
Includes a picture of five graduating students in cap and gown holding their diplomas
Purpose of Training
● Discuss the major changes resulting from the Uniform Guidance.
● Identify changes that have been made to the Green Book.
● Inform all participants of how D O E is implementing these changes
● Solicit feedback.
What is this New Guidance?
The Office of Management and Budget (OMB) released its final guidance on “Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards”. This new guidance, the Uniform Grant Guidance or UGG, is a reform of previous OMB guidance and serves as a one-stop shop for federal assistance and provides a government-wide framework for grants management.
(Previously known as Omni or Super Circular)
Goals of the Uniform Grant Guidance
● Streamline guidance on federal awards;
● Reduce administrative burden for the government;
● Strengthen federal oversight of funding to reduce potential for waste, fraud and/or abuse;
● Set standard requirements for financial award management uniformly across all federal agencies;
● Consolidate eight OMB Circulars into Title 2 of the CFR;
● Increase efficiency and effectiveness of Federal award-making.
From Circulars to the Uniform Guidance
Circulars A-89, A-102, A-110, is now, Uniform Guidance Subparts B, C, and D
Circulars A-21, A-87, A-122, is now, Uniform Guidance Subpart E
Circulars A-133, A-50, is now, Uniform Guidance Subpart F
EDGAR Parts 75 to 99, is now, EDGAR Parts 75-79 and 81-99
EDGAR Parts 74 and 80, became part of the Uniform Guidance
EDGAR – Old Friend, New Look
Includes a picture of a book, with a face on it that reads, “Don’t Judge Me” and on the spine of the book it reads, “READ ME”.
Key Parts of the NEW EDGAR
● Title 34
● Part 75 – Direct Grant Programs
● Part 76 – State-Administered Programs
● Part 77 – Definitions
● Part 81 – Enforcement
● Title 2
● Part 200 – Cost/Administrative/Audit Rules
Prior Rules (Incorporated Into the NEW EDGAR)
● A-21 – Cost Rules – Rules – IHEs
● A-87 – Cost Rules – State / Local Gov’t
● A-122 – Cost Rules – Nonprofit
● A-102 – Administrative Rules State / Local Gov’t
● A-110 – Administrative Rules IHEs
● A-133 – Audit Rules
Relationship of UGG to Green Book
● Project Application and Amendment Procedures for Federal and State Programs (Green Book) provides guidance to internal staff, recipients and subrecipients for management of state and federal projects.
● Includes both federal and state requirements.
● To the extent appropriate, UGG changes have been incorporated into this revision of the Green Book.
● There are elements of the Uniform Guidance that may have impact that may not be reflected in the Green Book so participants should continue to familiar themselves with UGG.
● Who does UGG apply to?
All non-Federal entities receiving federal funds as a recipient or subrecipient.
● What is a non-Federal entity?
Any entity not part of the federal government that receives federal funds as a recipient or subrecipient.
Grant vs. Project/Subgrant
● Be cautious of references to the term “Grant.”
● When used in UGG, the term “Grant” refers to the award of funds from the federal government to D O E (or direct funding from the federal government to any eligible entity).
● In order to distinguish between the award of funds to D O E, we use the term “Project” or “Subgrant” to refer to D O E award of funds to other entities.
□ Cost Principles
□ Indirect Costs
1-Group of students with their teacher
2-One student at a desk with an I-Pad
3-Group of students standing in front of lockers at the school
4-A teacher helping two students with their school work
UGG’s Impact on Green Book
Many of the Green Book’s standard forms have been amended as a result of the recent UGG:
□ D O E FORMS 100 A/B – Project Application Forms
□ D O E FORM 150 – Project Amendment Form
□ D O E FORM 200 – Project Award Form
□ D O E FORM 900s – RFA/RFP Templates
□ D O E FORM 610 and 620 – Risk Analyses
New Certification Statement
● Updated required certification statement for the project application, amendments, fiscal reporting and General Assurances.
● Required on all annual and final fiscal reports for payments.
Note: the language of the certification has been modified for the application and amendment forms.
I, ______________________________________________, (Please Type Name) as the official who is authorized to legally bind the agency/organization, do hereby certify to the best of my knowledge and belief that all the information and attachments submitted in this application are true, complete and accurate, for the purposes, and objectives, set forth in the RFA or RFP and are consistent with the statement of general assurances and specific programmatic assurances for this project. I am aware that any false, fictitious or fraudulent information or the omission of any material fact may subject me to criminal, or administrative penalties for the false statement, false claims or otherwise. Furthermore, all applicable statutes, regulations, and procedures; administrative and programmatic requirements; and procedures for fiscal control and maintenance of records will be implemented to ensure proper accountability for the expenditure of funds on this project. All records necessary to substantiate these requirements will be available for review by appropriate state and federal staff. I further certify that all expenditures will be obligated on or after the effective date and prior to the termination date of the project. Disbursements will be reported only as appropriate to this project, and will not be used for matching funds on this or any special project, where prohibited.
Further, I understand that it is the responsibility of the agency head to obtain from its governing body the authorization for the submission of this application.
D O E 100 A – Project Application
● New category added to capture the Data Universal Numbering System (DUNS) # & Employer Identification Number (EIN) #
● Applicants must now include their DUNS # (Unique Entity Identifier) used for the System for Award Management (SAM) registration. The name used on the actual Award must match the name attached to these documents.
● EIN, according to IRS can be Taxpayer Identification Number (TIN); Social Security Number (SSN) and Individual Taxpayer Identification Number (ITIN)
● New Certification Statement required.
D O E 150 – Project Amendment Form
● Restructured to align with changes to Form 100A
● Certification statement required
D O E 200 – Project Award Form
● Adds details to satisfy Federal requirements
● Federal award indicated – Title & Number
● DUNS number indicated (Unique Entity Identifier)
● FEID/FEIN number indicated
● RFA/RFP incorporated into the terms and conditions
D O E 900s Forms – Application Templates
● Application templates have been updated
● Revised General Assurances
● New Uniform Guidance references
● Revised Risk Analysis requirements
● Revised guidance on equipment purchases
UGG Requires a Risk Analysis
● Section A of D O E’s Green Book amended to require risk analysis for ALL subrecipients.
Components of Risk Analysis
● Subrecipient’s prior experience with the same or similar subawards;
● Audit results;
● New staff and/or changed systems;
● Results of any direct Federal monitoring
Risk Analysis Tool – D O E Form 610 (new)
School Districts, State Colleges, State Universities, and Florida State Agencies
● Organizational charts and agency’s Board approved policies and procedures.
● Changes in senior management and/or changed internal systems
● Results of any direct Federal monitoring
● Written policies and procedures must be submitted.
● Single audit results
Risk Analysis Tool – D O E Form 620
Governmental and Non-Governmental Agencies (except Florida State Agencies)
● Organizational charts and list of agency’s Board of Directors procedures.
● Subrecipient’s prior experience with subaward(s).
● Written policies and procedures must be submitted.
● Results of any monitoring or program reviews.
● Single audit results must be submitted with application packet.
● Financial stability will be determined.
Review of Risk Posed by Applicants
The pass-through entity (F D O E) must have a framework for evaluating risks before any applicant receives funding. The framework should evaluate:
● Financial Stability
● Quality of Management System
● History of Performance
● Audit Reports
● Applicant’s Ability to Effectively Implement Program
Results of the Risk Assessment may be cause for Special Conditions to be placed upon an award to include, but not limited to the following:
● Require reimbursement;
● Withhold funds until evidence of acceptable performance;
● More detailed reporting;
● Additional monitoring;
● Require subgrantee/subrecipient to obtain technical or management assistance; or
● Establish additional prior approvals.
Financial Management System
● New: Identification of Federal Awards
● Financial Reporting
● Accounting Records
● Internal Controls
● Budget Controls
● New: Written Procedures to Implement CMIA*
● New: Written Procedures to Determine Allowability
*CMIA = Cash Management Improvement Act
Financial Management System
Management requirements - Written procedures for determining the allowability of costs in accordance with Subpart E—Cost Principles and the terms and conditions of the Federal program.
Internal Controls (Must Be Formalized in Writing)
The non-Federal entity must:
● Establish and maintain effective control over the federal award.
● Evaluate and monitor the non-Federal entity’s compliance statutes, regulations, and terms of the federal award.
● Take prompt action when instances of noncompliance are identified, including noncompliance identified in audit findings.
● Take reasonable measures to safeguard protected personally identifiable information as defined under 2 CFR §200.79
Management Requirements. Managing procedures for equipment acquired in whole or in part under a Federal award shall, at a minimum, require:
1. Description of the property
2. Source of funding
3. Acquisition date and cost
4. Percentage of Federal participation
6. Use and condition of the property
7. Disposition data
● A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. However, the state requirement is that inventory be reconciled annually.
● A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated.
● Adequate maintenance procedures must be developed to keep the property in good condition.
● If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return.
The non-Federal entity must have written procedures for procurement transactions. These procedures must ensure that all solicitations:
1. Clear and accurate description of the technical requirements for the material, product, or service to be procured.
2. Description must not, in competitive procurements, contain features which unduly restrict competition.
3. The description may include a statement of the qualitative nature of the material, product or service to be procured and, when necessary, must set forth those minimum essential characteristics and standards.
4. Avoid detailed product specifications.
5. When it is impractical or uneconomical to make a clear and accurate description of the technical requirements, a “brand name or equivalent” description may be used as a means to define the performance or other salient requirements of procurement.
Conflict of Interest
● Must maintain written standard of conduct, including conflict of interest policy.
● A conflict of interest arises when any of the following has a financial or other interest in the firm selected for award:
● Employee, officer or agent
● Any member of that person’s immediate family
● That person’s partner
An organization which employs, or is about to employ, any of the above or has a financial interest in the firm selected for award
Conflict of Interest
NEW: If the non-federal entity has a parent, affiliate, or subsidiary organization that is not a state or local government the entity must also maintain written standards of conduct covering organization conflicts of interest.
Procurement for school districts is governed by Rule 6A-1.012, F A C, Purchasing Policies.
This rule requires that each district school board shall establish purchasing rules which must include but not be limited to the provisions contained in the Rule.
https://www.flrules.org/gateway/RuleNo.asp?title=FINANCE AND ADMINISTRATION&ID=6A-1.012
Procurement for state agencies is governed by Chapter 287, Laws of Florida.
All other entities must adhere to procedures specified in UGG.
OMB is allowing other entities an additional year to come into compliance with the revisions to the procurement requirements; however the basic principles have not changed.
Carefully review the requirements in UGG and develop written procedures accordingly.
The non-Federal entity must have written procedures for cash management activities. These procedures must ensure that the following phases are addressed:
● Payment Process
● Cash Management Improvement Act (CMIA) requires no more than 72 Hours between draw down of monies and payment of those monies, otherwise interest begins to accrue.
Award Letter Received, Now What?
Uniform Guidance & Performance
Uniform Guidance stresses utilizing performance requirements
● Program goals
● Expected outcomes
● Milestones (lessons learned, use of promising practices)
● Continue using FL guidance
Performance - Financial Reporting
1. Compare actual accomplishments to objectives. (Quantify to extent possible)
2. Reasons goals were not met if appropriate
3. Additional pertinent information (e.g. analysis and explanation of cost overruns, high unit costs)
4. Significant developments
a. Problems, delays. Adverse conditions that would impair ability to meet objective of the award
b. Favorable developments. Finishing sooner or at less cost
Performance Expectations and Results/Deliverables
● Program Goals
● Scope of Work
Performance Expectations and Results – Performance Measures
● Specific Quantities
● Milestones or Frequency
● Level of Completion
● Materials Provided
Monetary adjustments for non-performance
Timeline for Effects of Changes
● U S Department of Education has indicated that changes in performance expectations will be handled on a program by program basis. It may be some time before the full effects of the changes are felt.
● Expect to see more rigorous performance requirements to be implemented with programmatic reauthorization, and updated regulations and/or non-regulatory guidance.
Final Expenditure Reports: D O E 399, 499, and 599
New certification statement replaces previous certification statement on these reporting forms.
By signing this report, I certify to the best of my knowledge and belief that the report is true, complete, and accurate, and the expenditures, disbursements and cash receipts are for the purposes and objectives set forth in the terms and conditions of the Federal award. I am aware that any false, fictitious, or fraudulent information, or the omission of any material fact, may subject me to criminal, civil or administrative penalties for fraud, false statements, false claims or otherwise.
Key Changes in Audit Requirements
● Single Audit Threshold has increased to $750,000.
● Questioned costs less than $25,000 are no longer required to be reported.
● Fewer audits and findings have monitoring implications.
● Audits must be submitted electronically to the Federal Audit Clearinghouse and made available to all funding agencies.
● States will continue to resolve sub-recipient audits.
● Certification required for fiscal reports, payment vouchers, and indirect cost proposals.
● Adds guidance about dependent care costs related to conferences.
● Discusses direct charging of materials and supplies (Computer equipment less than $5,000 treated as a supply). Florida requirements will not change. State law prescribes a threshold of less than $1,000.
● Small attractive items with a purchase value less than $1,000, whether classified as equipment, technological item, or supplies must be safeguarded and there must be a written policy on tracking.
Cost Principles (continued)
State restrictions may further limit expenditures of federal awards. See “Reference Guide for State Expenditures.”
Allowability of Costs Criteria
Except where otherwise authorized by statute, costs must meet the following general criteria in order to be allowable under Federal awards:
a) Be necessary, reasonable, and allocable;
b) Conform to limitations or exclusions set in the principles or the Federal award;
c) Be consistent with policies and procedures that apply to both federal and non-Federal funds.
Allowability of Costs Criteria (continued)
d) Be applied with consistent treatment.
Example - A cost may not be assigned to a Federal award as a direct cost if any other cost incurred for the same purpose in like circumstances has been allocated to the Federal award as an indirect cost.
e) Be determined in accordance with generally accepted accounting principles (G A A P)
Cost Principles (continued)
Basic standards remain the same:
Note: All must be documented
A cost is reasonable if, in its nature and amount, it does not exceed that which would be incurred by a prudent person under the circumstances prevailing at the time the decision was made to incur the cost.
Reasonable Costs (continued)
● Consideration must be given to:
a. Whether cost is a type generally recognized as ordinary and necessary for the operation of the non-Federal entity or the proper and efficient performance of the Federal award;
b. The restraints or requirements imposed such as:
● Arms length bargaining (hint: procurement processes);
● Federal, state and local laws; and
● Terms of the grant award.
c. Market Prices for comparable goods or services in the geographical area;
d. Whether the individuals acted with prudence under the circumstances considering their responsibilities; and
e. No significant deviation from established prices.
Reasonable Costs (continued)
● Practical Questions
● Do I really need this?
● Is the expense targeted to valid programmatic/ administrative need?
● Is this the minimum amount I need to spend to meet my need?
● Do I have the capacity to use what I am purchasing?
● Did I pay a fair rate?
● If I were asked to defend this purchase, would I be able to?
A cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received.
Allocable Costs (continued)
● A cost is allocable to a Federal award or cost objective if the goods or services involved are chargeable or assignable in accordance with relative benefits received.
● Incurred specifically for the award;
● Benefits both award and other work and can be distributed in proportions that may be approximated using reasonable methods; and
● Necessary to the overall operation of the entity and assignable to the award in accordance with this Part.
● Can only charge in proportion to the value received by the program
● Example: Agency purchases a computer to use 50% on the Federal grant program and 50% on a state program – can only charge half the cost to the grant.
Applicable credits refer to those receipts or reduction-of-expenditure-type transactions that offset or reduce expense items allocable to the Federal award as direct or indirect (F & A) costs.
Examples: Purchase discounts, rebates or allowances, recoveries or indemnities on losses, insurance refunds or rebates, and adjustments of overpayments or erroneous charges.
Treatment of Applicable Credits
To the extent that such credits accruing to or received by the non-Federal entity relate to allowable costs, they must be credited to the Federal award either as a cost reduction or cash refund, as appropriate.
Time and Effort Documentation
New Standards for Documentation of Personnel Expenses. Charges for salaries:
● Must be based on records that accurately reflect the work performed.
● Must be supported by a system of internal controls which provides reasonable assurance charges are accurate, allowable and properly allocated.
● Must be incorporated into official records.
● Not to exceed 100%.
Time and Effort Documentation
● Must reasonably reflect total activity for which employee is compensated.
● Must encompass all activities (federal and non-federal).
● Must comply with established accounting policies and practices.
● Must support distribution among specific activities or cost objectives.
Time and Effort Documentation (continued)
● Budget estimates alone do not qualify as support for charges to Federal awards
● Percentages may be used for distribution of total activities.
● Florida currently has a substitute system which was approved in 1996 and many districts have implemented this system.
● Several years ago a “new” option was offered that allows employees with schedules that do not change from week to week to certify time and effort on a semi-annual basis.
Time and Effort Documentation
Due to lack of clear directive from federal government – no change recommended at this point.
Travel costs are the expenses for transportation, lodging, subsistence, and related items incurred by employees who are in travel status on official business of the non-Federal entity.
Travel – Methods of Charging
Travel costs, as previously defined, may be charged:
On an actual cost basis;
On a per diem or mileage basis in lieu of actual costs incurred; or
On a combination of the two above
The method used must be applied to an entire trip and not to selected days of the trip, and results in charges consistent with those normally allowed in like circumstances.
Note: All subrecipients are required to adhere to Section 112.061, Florida Statutes, and the D O E Travel Manual, which cover per diem allowance and travel expenses. These statutory provisions are consistent with UGG cost principles.
Some Cost Items Have Not Changed!
The following are not allowable:
● Fines and Penalties
● Advertisement that promotes the organization
● Religious worship, instruction, or proselytization
● Construction, remodeling, repair, operation, or maintenance of religious facility
● Unless specifically authorized, acquisition of real property or construction
● Purchase of goods and services to be used after the end of the project period
How is the Indirect Rate Determined?
● Approved by the cognizant agency.
● D O E is the cognizant agency for all L E As.
● Two types of rates – restricted and unrestricted. Most education grant funds are required to use restricted rates.
● IF an entity has a restricted indirect cost rate approved by an entity other than D O E, that is the rate that will be used.
● IF there is not an approved restricted rate, the rate will be 8% of the modified total direct cost (M T D C).
Relationship Between Indirect and Administrative Costs
● Indirect costs are considered a part of administrative costs.
● IF there is a cap on administrative costs (and for many education programs there is a cap), AND that cap is lower than the indirect cost rate, the indirect rate must be lowered to equal or be less than the administrative costs cap.
● Example: Entity has an indirect rate of 8%. Administrative costs cap for program is 5%. Indirect rate cannot exceed 5% for the specific program.
When do these changes take place?
● UGG applies to all Federal grants awarded on or after December 26, 2014. Since most education grants are issued effective July 1, the Uniform Guidance becomes applicable on July 1, 2015.
● Audit and indirect cost changes take effect the next fiscal year after December 26, 2014, – July 1, 2015.
● As of October 1, 2015, the majority of grant funds will be subject to the Uniform Guidance.
● Revisions to Green Book will take effect on July 1, 2015.
● Revised General Assurances and Risk Assessment required prior to awards.
Does Equipment Become “Supplies?”
Object codes as specified in the Red Book will not change:
● 600 Furniture, Fixtures and Equipment
● 641 Capitalized Furniture, Fixtures and Equipment
● 642 Noncapitalized Furniture, Fixtures and Equipment
● 643 Capitalized Computer Hardware
● 644 Noncapitalized Computer Hardware
Charts of Accounts for other sub-recipients should clearly distinguish these categories
When Does a Subrecipient Need to Submit a Formal Amendment (D O E 150/151) for Prior Approval?
There are very limited changes to this section of the Green Book. There is no specification of a 10% change in budget lines requiring an amendment. Need for an amendment is based on the types of changes rather than the amount of the change. See Section B of the Green Book.
Prior Approval of Amendment Required
● New - Additional criterion: Disengagement of the project director – if the position responsible for managing/overseeing the project award is disengaged from the project for more than three months, or if there is a 25% reduction in time devoted to the project.
● Changes in:
● Scope, goals, or objectives
● Project evaluation scope
● Deliverables or work tasks
● Key personnel
● Contracted services
When Are Obligations Made?
Type of obligation and when the obligation occurs:
Acquisition of property is obligated on the date of the binding written commitment
Personal services by an employee is obligated when the services are performed
Personal services by a contractor is obligated on the date of a binding written commitment
Travel is obligated when the travel is taken
Approved pre-agreement cost is obligated on the first day of the grant or subgrant performance period
When is “Advertising” Allowable?
● Allowable for programmatic purposes including:
● Procurement of goods
● Disposal of materials
● Program outreach
● Public relations (in limited circumstances)
● Exercise care as “promotional items” are prohibited under state law unless specifically authorized by statute.
Is Purchase of Food Allowable?
Food is not an allowable expenditure unless made pursuant to s. 1001.43(2) (g) which provides that the district school board may adopt policies which permit
“The use of federal funds to purchase food when federal program guidelines permit such use.”
When Can Equipment Purchased By One Program Be Used in Another Program?
● Equipment must be used by the Non-Federal entity in the program or project for which it was acquired as long as needed, whether or not the project or program continues to be supported by the Federal award.
● When no longer needed, may be used in other activities with the following priority:
1. Projects supported by Federal awarding agency
2. Project funded by other Federal agencies
● When used it may be shared (according to the above priorities) provided such use will not interfere with work on the original projects/programs.
D O E Staff
Green Book Revision and UGG Training Team*
● U.S. Department of Education website devoted to technical assistance for grantees (regulations, F A Qs, training resources)
● D O E Grants Management website (Green Book, fiscal training)