OMB CIRCULAR A110 Uniform Administrative Requirements for Grants
OMB CIRCULAR A-110 Uniform Administrative Requirements for Grants and Agreements With Institutions of Higher Education, Hospitals, and Other Non. Profit Organizations CRe. ATE ver. 05/13 © 2013 Florida State University. All rights reserved
ASSIGNMENT OF GENERAL RESPONSIBILITIES SRS/SRAS Staff § Review award terms to determine agency’s compliance with A-110 § Ensure University’s compliance at project (award) level
ASSIGNMENT OF GENERAL RESPONSIBILITIES, cont’d SRS/SRAS Directors § Ensure their departments comply with A-110 at project/agency level (e. g. , SRS/SRAS-rebudgeting, prior approvals, SRAS-- financial reporting) § Ensure compliance in areas outside of their departments (e. g. , Purchasing-- procurement standards, Controller’s Office-- Financial and Property standards)
Circular A-110 - Highlights BACKBONE OF FEDERAL GUIDELINES § Subpart A General Requirements § Subpart B Pre-award Requirements § Subpart C Post-award Requirements § Subpart D After-the-Award Requirements
SUBPART A- General Requirements. Purpose § Establish standards for consistency and uniformity among Federal agencies in administration of awards with higher education institutions, hospitals and other non-profit organizations Subpart A – General
SUBPART A- General Requirements. Applicability § Awards to recipients/subrecipients covered by A-110 Ø Prime Recipient - Party who receives award from a federal agency Ø Subrecipient - Party to whom prime recipient subcontracts with to perform a portion of the award requirements § Common misapplication Prime recipient passes on circular applicable to prime recipient to subrecipient, even though it does not apply to subrecipient Subpart A – General
Example of proper application of Circulars Subpart A – General
SUBPART B Pre-Award Requirements The agency determines the type of award instrument: § Grant- used when principal purpose is accomplishment of public purpose or stimulation authorized by Federal statute § Cooperative agreement (CA)- Same as for grant. Additionally, CA used when substantial involvement expected between agency and University § Contract- used when principal purpose is the acquisition of property/services for direct benefit of Federal Government Subpart B – Pre-award
SUBPART B Pre-Award Requirements § Application forms for Federal assistance - SF-424 series (SRS) § Debarment and suspension - (SRS) Awards (or sub awards) prohibited to organizations debarred, suspended or otherwise excluded from or ineligible § Certifications and representations - (SRS) Must be filed (A-110 encourages agencies to require annually on an agency-wide basis) Subpart B – Pre-Award
SUBPART B Pre-Award Requirements Ø Ø Ø Drug Free Workplace Lobbying Debt, Debarment and Suspension Conflict of Interest Misconduct in Science Subpart B – Pre-award
SUBPART B Pre-Award Requirements SRS/SRAS § Additional requirements may be imposed by agency if applicant/recipient: Ø Poor performance history Ø Financially unstable Ø Management system does not meet A-110 standards Ø Nonconformance with terms and conditions of a previous award Ø Not otherwise responsible Subpart B – Pre-award
SUBPART C – Post-Award Requirements 1. Financial and Program Management 2. Property Standards 3. Procurement Standards 4. Reports and Records 5. Termination and Enforcement SUBPART C – POST-AWARD REQUIREMENTS
SUBPART C – Post-Award Requirements 1. Financial and Program Management A. Standards for financial management B. C. D. E. F. G. H. systems Payment Cost sharing or matching Program income Revision of budget & program plans Non-Federal audits Allowable costs Period of availability of funds SUBPART C – POST-AWARD REQUIREMENTS
A. Eight Standards for Financial Management Systems SRAS 1. Accurate, current and complete disclosure of financial activity (OMNI) 2. Records that identify source and application of funds including (OMNI): Ø information pertaining to Federal awards Ø authorizations Ø obligations Ø unobligated balances Ø assets Ø outlays Ø income Ø interest SUBPART C – POST-AWARD REQUIREMENTS Financial and Program Management
A. Eight Standards for Financial Management Systems, cont’d 3. Effective control over and accountability for funds, property and other assets 4. Adequate safeguard of all assets and assure use is solely for authorized purposes 5. Comparison of outlays with budget amounts for each award 6. Written procedures to minimize time elapsing between transfer of funds to recipient from U. S. Treasury and issuance of payment by recipient SUBPART C – POST-AWARD REQUIREMENTS Financial and Program Management
A. Eight Standards for Financial Management Systems, cont’d 7. Written procedures for determining reasonableness, allocability and allowability of costs in accordance with applicable Federal cost principles and award terms/conditions 8. Accounting records supported by source documentation Ø P-Card and Travel receipts SUBPART C – POST-AWARD REQUIREMENTS Financial and Program Management
B. Payment § Written procedures minimizing time between fund transfer and disbursement § Financial management systems meet standards for fund control and accountability requirements § Agency must pay within 30 days of billing § University allowed to submit requests for advances and reimbursements § Interest earned >$250 must be remitted annually SUBPART C – POST-AWARD REQUIREMENTS Financial and Program Management
C. Cost sharing & D. Program Income § A-110 addresses the Federal requirements for Cost Sharing and Program Income – The details of these sections will be covered separately SUBPART C – POST-AWARD REQUIREMENTS Financial and Program Management
E. Revision of budget and program plans § FSU must report deviations in budget/ program plans & request prior approvals for: Ø Change in scope or objective Ø Changes in key personnel Ø Absence of PI for more than 3 months or 25% reduction in time devoted to project Ø Need for additional federal funds Ø Transfer from direct to indirect costs or indirect to direct (if required by agency) Ø Sub awards, if not in approved budget SUBPART C – POST-AWARD REQUIREMENTS Financial and Program Management
F. Non-Federal audits, G. Allowable costs, H. Period of availability of funds § Non-Federal audits- University is subject to Single Audit Act Amendments and OMB Circular A-133 (covered in A-133 session) § Allowable costs- in accordance with OMB Circular A-21 (covered in the A-21 session) § Period of availability of funds- Allowable costs resulting from obligations incurred during funding period any authorized preaward costs SUSUBPART C – POST-AWARD REQUIREMENTS Financial and Program Management
SUBPART C – Post-Award Requirements 1. Financial and Program Management 2. Property Standards 3. Procurement Standards 4. Reports and Records 5. Termination and Enforcement SUBPART C – POST-AWARD REQUIREMENTS
Property Standards- Insurance coverage § FSU must insure property acquired with Federal $ at the same levels as FSU acquired property § Agency may require additional coverage SUSUBPART C – POST-AWARD REQUIREMENTS Property Standards
Property Standards- Exempt Property § Generally an agency has the option to vest title of property acquired under an award to FSU without further obligation - "exempt property" § If title to property is not specified by agency, it automatically defaults to exempt property § Exempt property does not need to be included on equipment inventory report to an agency SUSUBPART C – POST-AWARD REQUIREMENTS Property Standards
Property Standards. Non Exempt Property § If equipment is not “exempt property”, title vests with University but use requirements are: Ø Must be used on project as long as needed Ø On other activities sponsored by agency or Ø On other federally-sponsored activities § User charges must be treated as program income SUBPART C – POST-AWARD REQUIREMENTS Property Standards
Property Standards- Equipment, cont’d § Equipment records must be maintained accurately and include a number of data elements (OMNI captures) § Physical inventory of equipment taken and results reconciled with equipment records at least once every two years (FSU annual) § Control system in effect to insure adequate safeguards to prevent loss, damage, or theft § Adequate maintenance procedures to keep equipment in good condition § Equipment owned by Federal Government requires Federal property tag on equipment (in addition to FSU’s) SUBPART C – POST-AWARD REQUIREMENTS Property Standards
Property Standards. Supplies and other expendable property § Title to supplies and other expendable property will vest in University § If “exempt property”, there is no further obligation to agency § If not “exempt property” same “use provision” as for equipment, applies SUBPART C – POST-AWARD REQUIREMENTS Property Standards
SUBPART C – Post-Award Requirements 1. Financial and Program Management 2. Property Standards 3. Procurement Standards 4. Reports and Records 5. Termination and Enforcement SUBPART C – POST-AWARD REQUIREMENTS
Procurement Standards § SRS is responsible for compliance on sub- awards issued by FSU § SRAS is responsible for making Purchasing aware of requirements and ensuring compliance SUBPART C – POST-AWARD REQUIREMENTS Procurement Standards
Procurement Standards. Codes of Conduct § University must maintain written standards regarding conflicts of interest in the award and administration of contracts § No employee, officer, or agent is allowed to participate in selection, award, or administration of contract if there is conflict of interest § Conflict of interest = employee, officer, or agent, any member of his or her immediate family, family his or her partner, partner or an organization that employs these people, has a financial or other interest in firm selected SUBPART C – POST-AWARD REQUIREMENTS Procurement Standards
Procurement Standards. Codes of Conduct, cont’d § University officers, employees, and agents cannot solicit or accept gratuities, favors, or anything of monetary value from contractors, or parties to sub agreements § Standards of conduct must provide for disciplinary actions for violations of such standards SUBPART C – POST-AWARD REQUIREMENTS Procurement Standards
Procurement Standards- Competition § Procurements must be conducted in manner to provide, to maximum extent practical, open and free competition § Any and all bids/offers may be rejected when it is in FSU’s interest to do so SUBPART C – POST-AWARD REQUIREMENTS Procurement Standards
Procurement Standards- Procedures § Type of procuring instrument will be determined by University but must be appropriate for particular procurement Ø Fixed price, cost reimbursable, purchase order and incentive contracts can be used Ø “Cost-plus-a-percentage-of-cost“ or “Percentage of construction cost" methods of contracting cannot be used § Contracts must be made only with responsible contractors SUBPART C – POST-AWARD REQUIREMENTS Procurement Standards
Procurement Standards. Cost and Price Analysis § Some form of cost or price analysis must be made and documented with every procurement action Ø Price analysis may be accomplished by comparing price quotations submitted, market prices, etc. Ø A cost analysis is the review and evaluation of each element of cost to determine reasonableness, allocability and allowability SUBPART C – POST-AWARD REQUIREMENTS Procurement Standards
Procurement Standards- Records § Files for purchases in excess of $100, 000 must include following : Ø Basis for contractor selection Ø Justification for any lack of competition Ø Basis for awarded cost § A-110 sets forth specific provisions that must be included in all contracts and subcontracts >$100, 000 § System for contract administration must be maintained to ensure contractor conformance with terms and adequate and timely follow up on all purchases SUBPART C – POST-AWARD REQUIREMENTS Procurement Standards
SUBPART C – Post-Award Requirements 1. Financial and Program Management 2. Property Standards 3. Procurement Standards 4. Reports and Records 5. Termination and Enforcement SUBPART C – POST-AWARD REQUIREMENTS
Reports and Records-Monitoring and Reporting Program Performance § FSU is responsible for managing and monitoring each project and sub award § FSU must monitor sub awards to ensure audit requirements are met § Agency must prescribe the frequency performance reports are to be submitted SUBPART C – POST-AWARD REQUIREMENTS Reports and Records
Reports and Records. Financial Reporting § Agency prescribes the forms that FSU must submit financial reports require University to use including the frequency Ø SF-425 Federal Financial Status Ø SF-270 Request for Advance or Reimbursement § SRAS prepares these reports Ø 28 Quarterly FFRs § Agency may require University to report amount of cash advances received in excess of three days (advance requests not FSU practice) SUBPART C – POST-AWARD REQUIREMENTS Reports and Records
Reports and Records-Retention and Access Requirements for Records § Financial records, supporting documents, etc. Ø 3 years from date of final expenditure report submission § Copies of original records may be substituted for original records if authorized by agency SUBPART C – POST-AWARD REQUIREMENTS Reports and Records
Reports and Records- Inspections § Rights of access - as long as records are kept. Ø Timely and unrestricted access to any books, documents, papers, or other records pertinent to awards § Indirect cost rate proposals Ø If submitted for negotiation – 3 years from date of submission SUBPART C – POST-AWARD REQUIREMENTSReports and Records
SUBPART C – Post-Award Requirements 1. Financial and Program Management 2. Property Standards 3. Procurement Standards 4. Reports and Records 5. Termination and Enforcement SUBPART C – POST-AWARD REQUIREMENTS
Termination and Enforcement § Sets forth uniform suspension, termination and enforcement procedures SUBPART C – POST-AWARD REQUIREMENTS-
Circular A-110 - Highlights § Subpart A General Requirements § Subpart B Pre-award Requirements § Subpart C Post-award Requirements § Subpart D After-the-Award Requirements
Closeout procedures § All obligations must be liquidated within 90 days § All financial, performance and other reports completed within 90 days following award ending date § Agency may approve extensions § Agency must pay balance due promptly/University must refund balance due to agency promptly SUBPART D – POST-AWARD REQUIREMENTS After-the-Award
Termination § Agency may terminate award in whole or in part only if: Ø University materially fails to comply with terms and conditions of award Ø Agency and University consent § University may terminate by giving written notification to agency: Ø Where partial termination is requested, if agency determines that reduced or modified work will not accomplish purposes for which award was made, it may terminate award in its entirety SUBPART D – POST-AWARD REQUIREMENTS After-the-Award
American Recovery & Reinvestment Act § Started 2009 § FSU received 124 awards totaling $60. 6 million § Program ends September 30, 2013 OMB granted exceptions Ø $ must be spent, liquidated (paid) and drawn by September 30, 2013 Ø SRAS/SRS reviewing open ARRA projects and will be notifying PIs of deadlines very soon!! Ø
Questions?
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