THE FUNDAMENTALS OF FEDERAL GRANTS MANAGEMENT AND AUDIT RES - PowerPoint Presentation

445 views
Uploaded On 2017-05-19

THE FUNDAMENTALS OF FEDERAL GRANTS MANAGEMENT AND AUDIT RES - PPT Presentation

Michael L Brustein Esq mbrusteinbrumancom Brustein amp Manasevit PLLC Spring Forum 2016 1 If a nonfederal entity violates the terms of the grant what are the consequences Recovery of funds ID: 549963

brustein manasevit pllc amp manasevit brustein amp pllc 2016 rights reserved federal cfr audit 200 grant funds sea management

Link:

Copy

Embed:

<iframe width="560" height="315" src="https://www.docslides.com/embed/549963" frameborder="0" allowfullscreen></iframe>

Download Presentation from below link

Download Presentation The PPT/PDF document "THE FUNDAMENTALS OF FEDERAL GRANTS MANAG..." is the property of its rightful owner. Permission is granted to download and print the materials on this web site for personal, non-commercial use only, and to display it on your personal computer provided you do not modify the materials and that you retain all copyright notices contained in the materials. By downloading content from our website, you accept the terms of this agreement.

Presentation Transcript

Slide1

THE FUNDAMENTALS OF FEDERAL GRANTS MANAGEMENT AND AUDIT RESOLUTION

Michael L. Brustein, Esq.mbrustein@bruman.comBrustein & Manasevit, PLLCSpring Forum 2016

1Slide2

If a “non-federal entity” violates the terms of the grant, what are the consequences?

2Slide3

“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.”

2 CFR § 200.415 (citing 18 U.S.C. §1001)

Brustein & Manasevit, PLLC ©

2016.

3Slide4

RECOVERY OF FUNDS

Cannot repay federal claims with federal dollarsWill state legislatures, city councils, post secondary institutions bail you out?Don’t forget about grant backsTreasury offset procedures (TOP)

Brustein & Manasevit, PLLC ©

2016.

4Slide5

CAN VIOLATING THE TERMS OF THE GRANT LEAD TO RECOVERY OF FUNDS?

5Slide6

Congress may fix the terms on which it disburses grants.A federal grant “is much in the nature of a contract,” in return for the federal funds the grantee agrees to comply with the federally imposed conditions.

Pennhurst v. Halderman, 451 U.S. 1 (1981)

Brustein & Manasevit, PLLC ©

2016.

6Slide7

But New Jersey and Pennsylvania argued to the Supreme Court that USDE cannot recover misspent grant funds

Bell v. New Jersey and Pennsylvania, 461 U.S. 773 (1983)

Brustein & Manasevit, PLLC ©

2016.

7Slide8

Federal auditors determined both states misspent Title I funds.

Brustein & Manasevit, PLLC ©

2016.

8Slide9

Supreme Court grantees misusing federal funds incur a debt to the Federal Government (citing Section 415 of GEPA)

Brustein & Manasevit, PLLC ©

2016.

9Slide10

Citing Pennhurst grantee chose to participate in the program, and as a condition of receiving the grant, gave an assurance that it would abide by the conditions of the grant

Brustein & Manasevit, PLLC ©

2016.

ARE CONTRACTORS/VENDORS SUBJECT TO THE TERMS OF THE GRANT?

NO!See 2 CFR 200.330 (b)(5)

Brustein & Manasevit, PLLC ©

2016.

11Slide12

WHAT VIOLATIONS CAUSE HARM TO THE FEDERAL INTEREST?

Non-federal entity made an unallowable expenditureFail to properly account for funds34 CFR 81.30

Brustein & Manasevit, PLLC ©

2016.

12Slide13

AN IDENTIFIABLE FEDERAL INTEREST INCLUDES:

Serving only eligible beneficiaries Providing only authorized servicesComplying with fiscal requirements:Set-asidesExcess costsMOE

Comparability

SNS

Matching

Brustein & Manasevit, PLLC ©

2016.

13Slide14

AN IDENTIFIABLE FEDERAL INTEREST

INCLUDES (cont.):Integrity of planning, application, record keeping, reporting requirementsMaintaining accountability for use of funds34 CFR 81.32

Brustein & Manasevit, PLLC ©

2016.

14Slide15

HOW IS A GRANT TERM VIOLATION DETERMINED?

OIG audit/investigationSingle auditFederal program monitoring

Pass through monitoring

34 CFR 81.30

Brustein & Manasevit, PLLC ©

2016.

15Slide16

Audit reports are recommendations to management!

Management must decide to sustain, sustain in part, or reject the audit finding.2 CFR 200.52116

Brustein & Manasevit, PLLC ©

2016.

For federal awards to non-federal entity, the federal agency issues the management decision (e.g. Program Determination Letter)

2 CFR 200.521 (b) 17

Brustein & Manasevit, PLLC ©

2016.

For pass through agencies (State-Administered Programs), SEA makes management decision

2 CFR 200.521 (c) 18

Brustein & Manasevit, PLLC ©

2016.

In both instances, 180 days from date of final audit report

2 CFR 200.521 (d)19

Brustein & Manasevit, PLLC ©

2016.

First audit under UGG must be submitted to audit clearinghouse by March 31, 2017

(EDGAR p. 216)20

Brustein & Manasevit, PLLC ©

2016.

AUDITORS MUST REPORT:

Significant deficiencies and material weaknesses in internal controlsMaterial non-compliance with grant termsKnown questioned costs exceeding $25,000 for compliance requirements in major program

2 CFR 200.516

Brustein & Manasevit, PLLC ©

2016.

ED does not concur!

(EDGAR p. 229)22Brustein & Manasevit, PLLC ©

2016.

SEA must ensure subrecipients take

timely and appropriate action to correct control weaknesses or instances of non-compliance23

Brustein & Manasevit, PLLC ©

2016.

ED does not monitor SEA Audit Resolution Process of LEAs / PS

Statewide single audits identify ineffective SEA oversightED oversees resolution of SEA single audit findings that involve federal education programs24

2016.

OIG looking at NC, MASS,

ILL25

2016.

The SEA must consider whether local audits necessitate adjustments to state’s own records

2 CFR 200.331 (g) 26

2016.

TYDING AMENDMENTS (CARRYOVER PROVISIONS)

Will dictate whether state returns funds to ED, or reallocates “live dollars” Note: 27 months of availability!27

2016.

fund recovery:Subrecipient returns disallowed expenditures Subrecipient contributes non-federal funds to federal activity

2016.

Does SEA expand its audit resolution activities for findings that are repeated for the same LEA for multiple years?

ED-OIG/A09P000129

2016.

Do SEA management letters meet all requirements of UGG?

Corrective actions required Time frames for follow-upDoes SEA determine that the corrective actions are reasonable before approving them?ED OIG/A09P000130

2016.

The management decision should describe any appeal process available to the auditee

Audit resolution appeal process should be codified31

2016.

Federal Audit Resolution

34 CFR Part 81 (EDGAR)See 81.30-Basis for Recovery of Funds32

2016.

Mitigating circumstances

34 CFR 81.33“The 90 Day Letter”33

2016.

BRUMAN RECOMMENDATION

If disallowance under $200,000 use compromise of claim authority34 CFR 81.36If disallowance over $200,000 considerMediation 34 CFR 81.13CAROI 2 CFR 200.513 (c)

2016.

CAROI available for both pass through and federal audit resolution

2016.

Equitable offset

now in jeopardy36

2016.

LEGAL DISCLAIMER

This presentation is intended solely to provide general information and does not constitute legal advice or a legal service. This presentation does not create a client-lawyer relationship with Brustein & Manasevit, PLLC and, therefore, carries none of the protections under the D.C. Rules of Professional Conduct. Attendance at this presentation, a later review of any printed or electronic materials, or any follow-up questions or communications arising out of this presentation with any attorney at Brustein & Manasevit, PLLC 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.

THE FUNDAMENTALS OF FEDERAL GRANTS MANAGEMENT AND AUDIT RES - PowerPoint Presentation

THE FUNDAMENTALS OF FEDERAL GRANTS MANAGEMENT AND AUDIT RES - PPT Presentation

Share:

Link:

Embed:

Related Contents