EDGAR Implementation and Utilizing Internal Controls - PowerPoint Presentation

369 views
Uploaded On 2018-03-08

EDGAR Implementation and Utilizing Internal Controls - PPT Presentation

Tiffany R Winters Esq twintersbrumancom Brustein amp Manasevit PLLC Spring Forum 2016 Effective Dates December 26 2014 2 CFR Part 200 Effective Date March 12 2015 ID: 643425

manasevit amp 2016 pllc amp manasevit pllc 2016 rights 200 rate brustein federal reserved indirect costs state cost awarding

Link:

Copy

Embed:

<iframe width="560" height="315" src="https://www.docslides.com/embed/643425" frameborder="0" allowfullscreen></iframe>

Download Presentation from below link

Download Presentation The PPT/PDF document "EDGAR Implementation and Utilizing Inter..." 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

EDGAR Implementation and Utilizing Internal Controls

Tiffany R. Winters, Esq.twinters@bruman.com Brustein & Manasevit, PLLCSpring Forum 2016Slide2

Effective Dates

December 26, 2014 – 2 CFR Part 200 Effective DateMarch 12, 2015 – USDE Releases FAQJune 25, 2015 – USDE Updates FAQJuly 1, 2015 – Applicability date for state-administered programsJuly 1, 2017 – Part 200 procurement rules apply ONLY IF two year grace period is taken by agencies

Now What?

2Slide3

EDGAR Implementation Questions

Administrative Implementation Issues

Fixed Amount Awards200.201(b)

A fixed amount award is a grant or subgrant that provides a specific level of support with regard to actual costs incurred. 200.45It reduces some administrative burden and record-keeping requirements. Accountability based primarily on performance. With prior approval from Federal awarding agency, a pass-through may provide subawards based on fixed amounts up to $150,000. 200.332Brustein & Manasevit, PLLC © 2016. All rights reserved5Slide6

Can we as the SEA award fixed amount subawards?

No. “The Department does not administer programs that authorize fixed amount awards to grantees or subgrantees….”Letter, dated June 5, 2015 Brustein & Manasevit, PLLC © 2016. All rights reserved6Slide7

Prior Written Approval200.407

To avoid subsequent disallowance or dispute based on unreasonableness or nonallocability, the non-federal entity may seek prior written approval of the cognizant agency for indirect costs or the Federal awarding agency in advance of the incurrence of special or unusual costs. Brustein & Manasevit, PLLC © 2016. All rights reserved7Slide8

Prior Written Approval Required by the Federal Awarding Agency

Use unrecovered indirect costs towards cost sharing/matching 200.306Adding program income to a federal award (for SEAs/LEAs) or using program income for matching/cost sharing 200.307Revision of budgets: incurring costs after 90 days prior to award 200.308Equipment and other Capital Expenditures 200.439Compensation: fringe benefits 200.431Equipment 200.313Organization costs 200.455

Participant support costs 200.456

Pre-award costs 200.458

Travel costs for dependents for 6 or more months 200.474

Etc.

Can SEA give approval/ prior approval when required by Federal awarding agency?

In a state-administered program, the state had this authority previously… does the state still retain this right or only USDE?USDE: “ED is currently working on guidance that will address prior approval requirements, and my best suggestion is to wait for this guidance.” Letter dated, June 15, 2015 Brustein & Manasevit, PLLC © 2016. All rights reserved

9Slide10

Federal Audit Clearinghouse200.512(b)

The Federal Audit Clearinghouse (FAC) is the repository of record for Single Audits under Subpart F. All Federal agencies and pass-through entities and others interested in a reporting package and data collection form must obtain it by accessing the FAC. Brustein & Manasevit, PLLC © 2016. All rights reserved10Slide11

Can the SEA require LEAs to submit their single audits to the State?

Yes. The LEA must submit their audit reports electronically to the FAC. However, if the State needs to receive reports directly from LEAs to comply with state laws, the LEAs can submit the reports to the state in addition to electronic submission to the FAC. Letter, dated June 11, 2015Brustein & Manasevit, PLLC © 2016. All rights reserved11Slide12

Are SEAs required to assess risks of

subgrantees before awarding subgrants?No. There is no requirement for grantees to assess risks before making subgrants. Grantees must assess risks to inform monitoring priorities. However, grantees have discretion to make risk assessments before awarding subgrants. Factors for grantees to consider when developing their risk tools can be found at 2 CFR §200.331.ED considers pre-award risk reviews to be a best practice.ED FAQ, Subpart D Question 20, March 17, 2016Brustein & Manasevit, PLLC © 2016. All rights reserved

12Slide13

Allowability

What written procedures do we need?

Cash management procedures 200.302(b)(6)Allowability procedures 200.302(b)(7)Procedures for managing equipment 200.313(d)Written standards of conduct covering conflicts of interest 200.318(c)Procurement procedures 200.319(c)Written method for conducting technical evaluations of the proposals received and for selecting recipients 200.320(d)(3)Written compensation and leave policies 200.430 Travel policies (including relocation costs) 200.474 and 200.464Brustein & Manasevit, PLLC © 2016. All rights reserved

14Slide15

Does ED have any guidance for developing written procedures for determining allowable costs?

How the entity will determine if a cost is allowable. Letter, dated May 13, 2015All grant recipients must have financial management systems that include written procedures for ensuring all expenditures conform to the terms and conditions of the grant as well as the UGG principles.ED FAQ, Subpart E Question 6, March 17, 2016Brustein & Manasevit, PLLC © 2016. All rights reserved15Slide16

What rules apply to reimbursing non-employees, like parents or contractors?

Travel rules apply to employees who travel on official business. 200.474(a)NEW Participant support costs are allowable with prior approval of Federal awarding agency. Includes stipends, subsistence allowances, travel allowance and registration fees paid to or on behalf of participants or trainees in connection with conferences, trainings or projects. 200.75

16Slide17

Procurement Implementation Issues

Conflict of Interest 200.318(c)(1)

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 or tangible personal benefit from the firm considered for a contract:Employee, officer, or agentAny member of that person’s immediate familyThat person’s partnerAn organization which employs, or is about to employ, any of the above or has a financial interest in the firm selected for award

18Slide19

What is a “tangible personal benefit”?

Includes other non-financial benefits that result in a personal benefit for the employee (such as improved employment opportunities, business referrals, political influence, etc.)ED FAQ, Subpart D Question 11, March 17, 2016Brustein & Manasevit, PLLC © 2016. All rights reserved19Slide20

Competition200.319(a)

All procurement transactions must be conducted with full and open competition.To eliminate unfair advantage, contractors that develop or draft specifications, requirements, statement of work, and invitations for bids or RFPs must be excluded from competing for such procurements. Brustein & Manasevit, PLLC © 2016. All rights reserved20Slide21

Does the new EDGAR impact vendor’s ability to play a role in helping draft specifications for RFPs?

Yes!A vendor that is a contactor involved in the drafting or development of specifications for an RFP has an organizational conflict of interest that excludes the vendor. Soliciting input from 1-2 vendors would, in most cases, create an unfair competitive advantage (would have to solicit input so broadly so that any potential vendor may participate).ED FAQ, Subpart D Question 10, March 17, 2016Brustein & Manasevit, PLLC © 2016. All rights reserved21Slide22

Micro-Purchase

300.320(a)NEW: Acquisition of supplies or services, the aggregate dollar amount of which does not exceed $3,500.$2,000 for construction subject to the Davis-Bacon ActUpdated per Federal Acquisition Regulations (FAR) 48 CFR Subpart 2.1 on October 1, 2015 (200.67)May be awarded without soliciting competitive quotations if nonfederal entity considers the cost reasonable. To the extent practicable must distribute micro-purchases equitably among qualified suppliers.

22Slide23

What documentation or process is required to demonstrate the price is reasonable?

Indirect Costs Implementation Issues

Can I use the de minimis indirect cost rate of 10%?

NEW: De minimis rates (200.414(f))Non-federal entities may receive a de minimis indirect cost rate of 10% of MTDC if the non-federal entity never had a negotiated indirect cost rateReceived without any review of actual costsDe minimis rate is allowable for use indefinitelyBut: State or Local Government and Indian Tribe receiving over $35M - Not eligible (Appendix VII)Some agencies argue state/local governments are

never

eligible

25Slide26

Ineligible to use the de minimis rate, according to ED:

State and local governmentsEDGAR 75.561 and 76.561 requires States to negotiate rates with LEAs; accordingly, these entities have a negotiated rate.What about new LEAs/charters? – must negotiate rate.Restricted rate programsDe minimis rate is an “unrestricted” rate. Cannot be used for programs with supplement not supplant provisionsTraining rate programs, as defined under EDGAR 75.562Brustein & Manasevit, PLLC © 2016. All rights reserved

26Slide27

Can the pass-through entity further restrict my indirect rate?

NEW: Consistent Application of Negotiation (200.414(c))Federal agencies must accept a non-federal entity’s negotiated indirect cost rateA different rate may be used for a class of Federal awards or single Federal award only if:Required by statute or regulation (e.g. ED Restricted Rates), or Approval of Federal awarding agency head (per delegations authority) based on documented justificationBrustein & Manasevit, PLLC © 2016. All rights reserved

27Slide28

NEW: Requirements for Pass-through Entities

Pass-through entities must provide an indirect cost rate to subrecipients, which may be the de minimis rate. Section 200.331(a)(4)

28Slide29

COFAR FAQs:

Q. [P]ass-through entities are expected to honor a subrecipient’s negotiated indirect rate agreement, or use a 10% MTDC de minimis rate, or negotiate a rate with the subrecipient. Is it acceptable to require a subrecipient to accept a rate lower than 10% MTDC, or in lieu of their negotiated indirect rate? A. If the subrecipient already has a negotiated indirect rate with the federal government, the negotiated rate must be used. It also is not permissible for pass-through entities to force or entice a proposed subrecipient without a negotiated rate to accept less than the de minimis rate. COFAR FAQ: Q&A .331-6 Pass-through Entities and Indirect Cost Rate Negotiation

29Slide30

COFAR FAQs:

Q. Can Federal awarding agencies and pass-through entities permit this practice when it is truly voluntary? A. Yes. If a non-Federal entity receiving a direct Federal award or a subrecipient voluntarily chooses to waive indirect costs or charge less than the full indirect cost rate, Federal awarding agencies and pass-through entities can allow this. The decision must be made solely by the non-Federal entity or subrecipient and must not be encouraged or coerced in any way by the Federal awarding agency or pass-through entity.COFAR FAQ: Q&A .414-8 Federally negotiated indirect cost rates – voluntary under-charging or waiving IDC Brustein & Manasevit, PLLC © 2016. All rights reserved

30Slide31

What does this mean?

Under the new rules, the pass-through entity cannot require a subgrantee to use a lower rate than what is available to them.What is available?LEAs: Restricted/unrestricted rates negotiated with SEA.SEA must negotiate unrestricted rates for LEAs that want them.Post-secondary institutions/nonprofits: SEA may negotiate restricted rate or require use of flat restricted rate of 8% of MTDC. (EDGAR 76.564(c))SEA cannot cap restricted rate below 8%.Negotiated unrestricted rate (with HHS, DOL, etc.) may be used for programs without supplanting provisions.

31Slide32

What if state law restricts the rate?

Resources

ED Letters and Responses re: UGG:http://www.bruman.com/eduggletters/ED Questions and Answers Regarding 2 CFR Part 200 (Updated March 2016):http://www2.ed.gov/policy/fund/guid/uniform-guidance/edfaqs0416.pdfCOFAR FAQs (September 2015):https://cfo.gov/wp-content/uploads/2015/09/9.9.15-Frequently-Asked-Questions.pdf USDE Internal Control Use of Funds Guidance:http://www2.ed.gov/policy/fund/guid/uniform-guidance/fundsguidance.pdf

33Slide34

~ 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.

EDGAR Implementation and Utilizing Internal Controls - PowerPoint Presentation

EDGAR Implementation and Utilizing Internal Controls - PPT Presentation

Share:

Link:

Embed:

Related Contents