Implementing the Uniform Guidance
Parts I and II
Financial and Business Services
Summer Conference
July 23, 2015
Objectives
Attendees will gain an understanding of the following:
 Goals of the Uniform Guidance (2 Code of Federal Regulations
(CFR) part 200)
 Preparation for implementing the guidance
 Key changes in the guidance
 Impact of changes on subrecipients
 Resources for technical assistance and training
Uniform Guidance Goals
 Uniform Administrative Requirements, Cost Principles,
and Audit Requirements for Federal Awards
 Streamline and consolidate eight existing OMB Circulars
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Reduce administrative burden
Remove duplications
Remove inconsistencies and conflicting information
Improve outcomes
Uniform Guidance Goals
Support Key Policy Reforms
 Emphasis on performance
 Increased flexibility
 Increased accountability and oversight
 Efficient use of technology
 Consistent treatment of costs
 Standardizing business processes and data definitions
Preparation for Uniform Guidance
• US Department of Education
o Amended guidance and regulations
o Office of Management and Budget (OMB) Circulars
o Education Department General Administrative Regulations
(EDGAR)
o Code of Federal Regulations (CFR)
o Developed Technical Assistance webpage and email
o http://www2.ed.gov/policy/fund/guid/uniform-guidance/index.html
o FAQs
o OMB developed training
o ED developed training
o Crosswalks
o UniformGrantGuidanceImplementation@ed.gov
Preparation for Uniform Guidance
North Carolina Department of Public Instruction
 Analyzing new EDGAR
 Revising policies and procedures
 Developing information related to changes in regulatory
governance
 Finance Officer Newsletter
 Webpage
 Templates and Guides
 Presentations and training sessions
 Frequently Asked Questions (FAQ)
Statutes, Regulations and Guidance
• Federal Statutes
• Congress passes and creates a federal education program or rule
• Types of statutes
• Programmatic (NCLB, IDEA)
• Administrative (Cross-cutting)
• Appropriation (specific amount of money for specific program)
• Regulations
• Federal agency drafts and adopts to implement statute
• Types of regulations
• Programmatic (NCLB, IDEA)
• Administrative (EDGAR)
• Nonregulatory Guidance and Policy
• Agency interpretation of statutes and regulations
• Not same legal authority as statute or regulations
Federal Grants Management under
Uniform Guidance
KEY CHANGES
1. Focus on outcomes
6. Micro Purchases
2. Performance Metrics
7. Corrective Action
3. Risk Assessments
8. Family Friendly Policies
4. Financial Management Policies
9. False Claim Certifications
5. Equipment Use
10. Audit Thresholds
Uniform Grants Guidance - Timeline
 Changes took effect when the next fiscal year after December
26, 2014 started – so July 1, 2015 for audit and indirect costs
purposes.
 Uniform guidance applies to funds carried over in Stateadministered and formula programs from FY 2015 to FY 2016
(on 10/1/15) and to funds carried over in discretionary programs
in continuation awards made on or after December 26, 2014.
 Example: A State-administered grant was awarded on July 1,
2014 has existing terms/conditions (based on former part 80). If
any of those funds are unobligated and carried over to FY 2016
(on 10/1/15), they will have to be used and accounted for
consistent with the new Uniform Guidance.
 In general, by October 1, 2015, most discretionary and formula
grants will be following the Uniform Guidance.
Structure of Uniform Guidance
 Organized to align with grant life cycle
 Sub-parts
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A – Acronyms and Definitions
B – General Provisions
C – Pre-Award Requirements
D – Post-Award Requirements
E – Cost Principles
F – Audit Requirements
 Appendices
 III-V and VII – Indirect Cost / Cost Allocation Plans
 XI – Compliance Supplement
Crosswalk to Uniform Guidance
Grants made before December
26, 2014
Grants made on or after
December 26, 2014
Circulars A-89. A-102, and A-110
Uniform Guidance Subparts B, C,
and D
Circulars A-21, A-87 and A-122
Uniform Guidance Subpart E
Circulars A-133 and A-50
Uniform Guidance Subpart F
EDGAR Parts 75-99
EDGAR Parts 75-79 and 81-89
EDGAR Parts 74 and 80
Incorporated in Uniform Guidance
Uniform Guidance Subpart A –
Acronyms and Definitions
200.74 - Pass-through entity
 Non-Federal entity that provides a subaward to a
subrecipient to carry out part of a Federal program.
200.93 - Subrecipient
 Non-Federal entity that receives a subaward from a passthrough entity to carry out part of a Federal program.
200.23 - Contractor (replaces term “vendor” (used in A-133))
 An entity that receives a contract.
Uniform Guidance Subpart A –
Acronyms and Definitions
200.25 - Cooperative Audit Resolution
 Use of audit follow-up techniques which promote prompt
corrective action by improving communication, fostering
collaboration, promoting trust and developing an understanding
between the Federal agency and the non-Federal entity.
200.28 – Cost Objectives
 Program function, activity, award, organizational subdivision,
contract, or work unit for which cost data are desired and for
which provision is made to accumulate and measure the cost of
processes, products, jobs, capital projects, etc.
Uniform Guidance Subpart A –
Acronyms and Definitions
200.33 – Equipment
 Tangible, nonexpendable, personal property having a useful life
of more than one year and an acquisition cost of $5,000 or more
per unit.
200.61 – Internal Controls
 A process, implemented by a non-Federal entity, designed to
provide reasonable assurance regarding the achievement of
objectives in the following categories:
 Effectiveness and efficiency of operations
 Reliability of reporting for internal and external use, and
 Compliance with applicable laws and regulations.
Uniform Guidance Subpart A –
Acronyms and Definitions
200.94 – Supplies
 All tangible property other than equipment.
 Computing devices are supplies if less than $5,000 NEW
200.20 –Computing devices NEW
 Machines used to acquire, store, analyze, process, public
data and other information electronically.
 Includes accessories for printing, transmitting and
receiving or storing electronic information.
Uniform Guidance Subpart B – General
Provisions
SUBPART B - GENERAL PROVISIONS
200.11 - Conflict of Interest
 USDE must establish conflict of
interest policies for Federal
awards
200.113 - Mandatory Disclosures
 Non-Federal entities must
disclose in writing in a timely
manner all violations of Federal
criminal law involving fraud,
bribery, or gratuity violations
potentially affecting the Federal
award
 Failure to make disclosures can
 All non-federal entities must
establish conflict of interest
result in remedies for
noncompliance (200.338)
policies and disclose in writing
any potential conflict of interest to
the federal awarding agency in
accordance with the new Federal
awarding agency policy
Uniform Guidance - Federal
Requirements and Contents of Awards
 Type of Grant
Agreement
 Nature of Funding
 Financial Management
Rules
 Identification of Awards
 Financial Reporting
 Risk Assessments
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Specific Conditions
Monitoring
Performance Metrics
Cost Principles
Audit Resolution
Enforcement
Remedies for
Noncompliance
Uniform Guidance – Type of Grant
Agreement
200.201 – NEW Pass-through entity must decide on the
appropriate instrument for the Federal Award:
 Grant agreement
 Cooperative agreement
 Contract
Uniform Guidance – Fixed Amount
Awards
200.332 and 200.45 - NEW
 Requires prior approval from Federal awarding agency
 Payments are based on meeting specific requirements of the
Federal Award
 Accountability is based on performance and results
 Award amount is negotiated using cost principles as a guide (Up
to Simplified Acquisition Threshold (currently $150,000))
 No governmental review of the actual costs incurred
 Significant changes (i.e., principal investigator, project partner or
scope) must receive prior awarding agency written approval
Uniform Guidance – Nature of Funding
200.300 – Determination of Nature of Funding
 A Pass-through entity must make a case-by-case determination
as to whether each agreement casts the party as a subrecipient
or contractor. Look at the nature of the relationship.
Subaward
Contract
Allowable activities based on
applicable statute, local plan, and
State rules
Allowable activities based on terms
and conditions of contract.
Management rules are applicable
OMB circular and State law,
policies and procedures
Management rules include terms of
contract and State contract law.
Uniform Guidance – Nature of Funding
200.330(a) – Subrecipient
 Determines who is eligible to participate in a federal program
 Has its performance measured against whether the objectives of
the federal program are met
 Is responsible for programmatic decision making
 Is responsible for complying with federal program requirements
 Uses the federal funds to carry out a program as compared to
providing goods or services for a program
Uniform Guidance – Nature of Funding
200.330(b) – Contractor
 Provides the goods and services within normal business
operations
 Provides similar goods or services to many different purchasers
 Operates in a competitive environment
 Provides goods or services that are ancillary to the operation of
the federal program
 Is not subject to compliance requirements of the federal program
Uniform Guidance – Financial
Management Rules
200.302(b) - Financial Management Rules
 Identification of Awards NEW
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Financial Reporting
Accounting Records
Internal Control
Budget Control
 Written Cash Management Procedures NEW
 Written Allowability Procedures NEW
Uniform Guidance – Identification of
Awards
 200.331(a) – NEW All pass-through entities must ensure
subawards are clearly identified with specific data:
1. Subrecipient name (must match the name associated with its
unique entity identifier)
2. Subrecipient unique entity identifier
3. Federal Award Identification Number (FAIN)
4. Federal Award Date
5. Period of performance start and end date
6. Amount of federal funds ‘obligated by this action’
7. Total amount of federal funds ‘obligated to the
subrecipient’
Uniform Guidance – Identification of
Awards
 200.331(a) – NEW All pass-through entities must ensure
subawards are clearly identified with specific data
(continued):
8. Total amount of the federal award
9. Federal award project description for FFATA purposes
10. Name of federal awarding agency, pass-through entity, and
contact official
11. CFDA Number and Name; the pass-through entity must
identify the dollar amount made available under each
Federal award and the CFDA number at time of
disbursement
12. Whether the award is for “research and development”
13. The indirect cost rate
Uniform Guidance – Content of Awards
200.331(a) – The pass-through entity must reference:
 The requirements of the federal grant and any additional
requirements imposed by the pass-through (e.g., identification of
any required financial and performance reports)
 An approved federally recognized indirect cost rate negotiated
between the subrecipient and the Federal Government
 Appropriate terms and conditions concerning closeout of the
subaward
Uniform Guidance – Financial Reporting
Accurate, current, complete disclosure of financial results of
each award.
 200.327 – NEW Federal awarding agency can only collect
OMB approved data elements, no less than annually, no
more than quarterly.
 200.328 – NEW Non-federal entity must submit
performance reports at intervals required by federal
agency or pass-through entity.
Uniform Guidance – Accounting Records
Source documentation must be kept on:
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Federal Awards
Authorizations
Obligations and Unobligated balances
Assets
Expenditures
Income
Interest NEW
Electronic records NEW
 Unalterable original electronic records eliminate need for creation
and retention of paper copies (200.335)
 Electronic records may be substituted for original paper records
Uniform Guidance – Risk Assessment
200.205 – NEW Federal Award Agency Review of Risk
Posed by Applicants
 Must have framework for evaluating risks posed by
applicants; which may include reviewing the following:
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Financial stability
Quality of management system
History of Performance
Audit Reports
Applicant’s ability to effectively implement program
Uniform Guidance – Risk Assessment
200.331(b) – NEW Evaluate subrecipient’s risk of
noncompliance for the purpose of determining appropriate
monitoring actions.
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Prior experience with same or similar subawards
Results of previous audits
Change in personnel or new/substantially changed systems
Extent and results of Federal monitoring
Uniform Guidance – Specific Conditions
200.207(a) – Specific Conditions
 Federal agency or pass-through entity may consider
imposing additional conditions on Federal awards:
 Require reimbursement
 Withhold authority to proceed until evidence of effective
performance
 Require additional detailed reporting
 Perform project monitoring
 Require grantee obtain technical or management assistance
 Establish additional prior approvals
Uniform Guidance – Specific Conditions
200.207(b-c) – Specific Conditions
 Right to Notice:
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Nature of additional requirements
Reason why imposed
Nature of action needed to remove requirements
Time for completing actions
Method for requesting reconsideration
 Specific conditions must be removed once corrected
Uniform Guidance - Performance
Metrics
Financial Reporting: Accurate, current, complete disclosure
of financial results of each award.
 200.328(b)(2) - NEW Performance Metrics
1. Compare actual accomplishments to objectives
2. Provide reasons goals not met if appropriate
3. Additional pertinent information including, when
appropriate, analysis and explanation of cost overruns or
high unit costs
4. Significant developments, problems, delays, adverse
conditions
5. Favorable developments
Uniform Guidance – Monitoring
 200.331(d) – Monitoring to ensure subaward is used for
authorized purposes, including:
 Review of financial and performance reports
 Issue management decisions for audit findings
 Ensure timely and appropriate corrective action for all
deficiencies,
 200.331(d)(2) - Use monitoring to ensure appropriate
action is taken, through:
 Audits
 On-Site Reviews
 Other means
Uniform Guidance – Monitoring Tools
 200.331(e) - Depending on assessment of risk, the
following monitoring tools may be useful for the passthrough entity to ensure proper accountability and
compliance with program requirements and achievement
of performance goals:
 Training and technical assistance
 On-site monitoring or desk reviews
 Arranging for “agreed-upon-procedures” engagements
(described in 200.425 Audit Services)
Uniform Guidance – Cost Principles
 Cost Principles: Notable Changes
 New requirement - 200.407 - Certifications required for fiscal
reports, payment requests, and indirect cost proposals.
 Family-friendly flexibility
 Limited dependent care costs at conferences and travel
 Clarification – Materials and supplies
Uniform Guidance – Cost Principles
 200.407 - NEW Prior written approval in order to avoid
subsequent disallowances
 Cognizant agency for indirect cost
 Federal awarding agency in advance of incurrence of special
or unusual costs
 200.413 - NEW – Direct vs Indirect Costs
 Salaries of administrative and clerical staff must be treated
as “indirect” unless all of following are met:
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Services integral to activity
Individual specifically identified with activity
Explicitly included in budget
Not recovered as indirect
Uniform Guidance – Cost Principles
 200.410 - NEW Collection of Unallowable Costs
 Payments made for costs determined to be unallowable by
either the Federal awarding agency or the pass-through
entity must be refunded (including interest) to the Federal
government in accordance with instructions from the Federal
agency that determine costs are unallowable
 200.432 - NEW – Conferences
 Costs related to identifying, but not providing, locally
available dependent-care resources
Uniform Guidance – Cost Principles
 200.438 – NEW Entertainment unallowable:
 Except where costs might otherwise by considered
programmatic and are authorized or have prior written
approval of the Federal awarding agency
 200.474 - NEW Travel costs
 Travel charges must be consistent with entity’s written travel
reimbursement policies
 Allows costs for “above and beyond regular dependent care”
 Travel costs must be reasonable and consistent with written
travel policy / or follow GSA 48 CFR 31.205-46(a)
Uniform Guidance – Cost Principles
 200.430(i)(1) - NEW – Documentation for Personnel
Expenses
 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
 Must reasonably reflect total activity for which employee is
compensated
 Must encompass all federal and non-federal activity
 Comply with established accounting policies and practices
 Support distribution among specific activities or cost
objectives
Uniform Guidance – Cost Principles
 200.430(i)(1) - NEW – Personnel Expenses Percentages
 May reflect categories of activities expressed as a
percentage distribution of total activities
 200.430(i) - NEW – Personnel Expenses Compliance
 For records which meet the standards, the non-Federal
entity is not required to provide additional support or
documentation for the work performed
 PARS are not defined in the regulations
 200.430(i) - NEW – Personnel Expenses Reconciliation
 All necessary adjustment must be made such that the final
amount charged to the Federal award is accurate, allowable
and properly allocated
Uniform Guidance – Indirect Costs
Key changes in Indirect Costs
 Flexibility for grantees that have never had negotiated
indirect cost rate: de minimis rate of 10% Modified Total
Direct Costs (MTDC)
 States and LEAs not eligible
 Not for training grants
 Does not supersede individual grant indirect cost limitations
 Flexibility: Grantees with negotiated rate may apply for an
extension up to four years
 Reduce requirement to negotiate annually
 Requests for extension must be submitted 60 days earlier
than due date for indirect cost proposals (4 months after
fiscal year end)
Uniform Guidance – Audit Resolution
 200.331(e) – NEW Audit Resolution:
 Verify subrecipients have audits as required in Subpart F
 Audit threshold raised from $500K (A-133 circular) to $750K
(uniform grant guidance)
 Questioned costs less than $25,000 are no longer required
to be reported. Places greater burden on pass-through
 200.331(g) – NEW Pass-through entity must consider
whether results of audits or monitoring require
adjustments to the pass-through entity's own records
Uniform Guidance – Audit Resolution
 200.512 - NEW Single audit report submission: All
auditees must submit reporting package and data
collection form electronically to the Federal Audit
Clearinghouse (FAC)
 200.516 – NEW Known questioned costs greater than
$25,000 for “non-major” programs as well
 200.513 – NEW Federal awarding agency must use the
cooperative audit resolution (CAROI) to improve Federal
program outcomes
Uniform Guidance – Enforcement Action
 200.331(h) - Consider taking enforcement action based on
noncompliance, including:
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Temporarily withholding cash payments pending correction
Disallowing all or part of the cost
Wholly or partly suspending the award
Recommending suspension/debarment to federal awarding
agency
 Withholding further federal awards
 Other remedies that may be legally available
Uniform Guidance - Noncompliance
200.338 – Remedies for Noncompliance NEW
 If noncompliance cannot be remedied through Specific
Conditions, the pass-through entity may take one or more
of the following actions:
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Temporarily withhold cash payment pending correction
Disallow all or part of the cost
Wholly or partly suspend the Federal award
Terminate the award for “cause” (200.339) with notice and
opportunity for hearing (200.340 and 200.341)
 Initiate suspension or debarment (2 CFR Part 180)
 Withhold further Federal awards for the program
 Take other remedies as legally available
Uniform Guidance – Internal Control
Oversight responsibility for subrecipient monitoring is tied
very closely to internal controls that nonfederal entities,
including pass-through entities, are required to have in place.
This includes having:
 Well-trained and knowledgeable staff members;
 Sufficient resources (financial and staffing) dedicated to
subrecipient monitoring;
 Oversight managers with knowledge to identify the most
appropriate methods/tools and extent of monitoring to be used
(§200.331(e)(1));
Uniform Guidance – Internal Control
Internal Controls – Pass-through entities:
 Indicators to help identify risks from outside factors that may
affect a subrecipient’s performance (those related to economic
conditions, political changes, regulatory changes or unreliable
information) (§200.331(b))
 Official written policies and procedures (e.g., methodology for
resolving findings of noncompliance or internal control
weaknesses) (§§200.303; 200.331(e));
 Follow-up processes to ensure timely appropriate actions are
taken or completed on a subrecipient’s reported deficiencies
(§200.331(d)(2)); and
 Reviews of the subrecipient’s financial and programmatic
reports (§200.331(d)(1)).
Uniform Guidance – Equipment
200.313 – NEW changes:
 Conditional title vests with non-Federal entity
 Cannot encumber property without approval of Federal
awarding agency or pass-through entity
 May use equipment to be replaced as a trade-in or sell the
property and use proceeds to offset cost of replacement
property
 Must request disposition instructions from Federal agency if
required by the terms of the grant; otherwise may be retained,
sold or otherwise disposed of as follows:
 Over $5,000 – pay federal share
 Under $5,000 – no accountability other than formally dispose
Uniform Guidance – Procurement
200.320 – Methods of Procurement:
 NEW Micro-purchase
 Acquisition of supplies and services $3,000 or less
 $2,000 for construction subject to Davis-Bacon Act
 May be awarded without soliciting competitive quotations if
non-Federal entity considers the cost reasonable
 Must distribute micro-purchases equally among qualified
suppliers to the extent practicable
 Small purchase procedures
Uniform Guidance – Procurement
200.320 – Methods of Procurement (continued):
 Competitive sealed bids
 Competitive proposals
 NEW Noncompetitive proposals (200.320(f))
 Only appropriate when:
 The item is only available from a single source
 There is a public emergency that will not permit delay
 NEW Federal awarding agency or pass-through entity
expressly authorizes noncompetitive proposals in
response to a written request from non-Federal entity; or
after soliciting a number of sources, competition is
determined inadequate.
Uniform Guidance – Contract Cost and Price
200.323 – NEW Cost / Price Analysis
 Must perform a cost or price analysis with every
procurement over $150,000, including contract
modifications
 Cost analysis – generally means evaluating the separate
cost elements that make up the total price, including profit.
 Price analysis – generally means evaluating the total price
 Independent estimate before receiving bids or proposals
Uniform Guidance – Budget Control
 200.308 – Revision of budget and program plans
 Report deviations from budget or project scope/objectives
Must specifically request prior approval from Federal
awarding agency if the following occurs:
 Change in scope or objective of the project or plan
 Change in key person specified in application for Federal
award
 Disengagement from project for more than three months
or 25 percent reduction in time devoted to the project.
 Inclusion, unless waived by the Federal awarding
agency, of costs that require prior approval under
selected items of cost in Subpart E
 Transfer of funds budgeted to “participant support costs”
to other expense categories
Uniform Guidance – Budget Control
 200.308 – Revision of budget and program plans
(continued)
 Must specifically request prior approval from Federal
awarding agency if the following occurs:
 Subawarding, transferring or contracting work under a
Federal award, unless described in the application and
funded in the original award
 Changes in the approved cost-sharing or matching provided
by the non-Federal entity
 Need arises for additional Federal funds to complete the
project
Uniform Guidance – Waivers
 200.308(d) – Waivers can authorize recipients to:
 Incur costs 90 days before the award
 Incurred at risk of the recipient
 Not reimbursed if award not granted
 Extend period of performance by up to 12 months without
prior approval unless:
 Terms and conditions of the award prohibit
 Extension requires additional Federal Funds
 Extension involves change in approved objectives/scope
Uniform Guidance – Period of Performance
 200.309 – Non-Federal entity may charge to Federal
award only allowable costs incurred:
 During period of performance
 Before Federal agency or pass-through entity makes award
if costs authorized
 Period of performance length depends on type of grant:
 State-Administered – “Tydings” Period
 Direct Grants – “Expanded Authorities” Doctrine
Uniform Guidance – Cash Management
 200.305 – NEW Written Procedures to implement the
requirements of 200.305
 Must describe whether non-Federal entity uses:
 Advance payments
 Reimbursement
 Working Capital Advance
 States – payments governed by Treasury-State CMIA
Agreements 31 CFR Part 205 (no change)
 All other non-Federal entities – payments must minimize
time elapsing between draw from G5 and disbursement
(not obligation)
Uniform Guidance – Cash Management
 200.305 – NEW Advances must be maintained in insured
accounts
 200.305 – NEW Pass-through entities cannot require
separate depository accounts
 200.305 – NEW Accounts must be interest bearing unless:
 Aggregate federal awards under $120,000
 Account not expected to earn more than $500 per year
 Bank required minimum balance so high, account not
feasible
 Foreign government or banking system prohibits interest
bearing accounts
Uniform Guidance – Cash Management
 200.305 – NEW Interest up to $500 annually may be
retained by non-Federal entity for administrative purposes
 200.305 – NEW Interest earned must be remitted annually
to HHS Payment Management system
Uniform Guidance – Appendix II(H)
Debarment and Suspension:
Per the Code of Federal Regulations, 2 CFR 200.12, “Nonfederal entities and contractors are subject to the nonprocurement debarment and suspension regulations
implementing Executive Orders 12549 and 12689, 2 CFR
part 180. The regulations restrict awards, subawards, and
contracts with certain parties that are debarred, suspended,
or otherwise excluded from or ineligible for participation in
Federal assistance programs or activities.”
Federal Information Resources
 US Department of Education EDGAR web page at
ed.gov
 Council on Financial Assistance and Reform
(COFAR) at cfo.gov/cofar
 OMB Policy Statements on Uniform Grant Guidance
at http://www.whitehouse.gov/omb/grants_docs
Contact Information
•
Leigh Ann Kerr, Assistant Director, School Business Services;
LeighAnn.Kerr@dpi.nc.nc.gov ; (919) 807-3553
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Kathy Cooper, Section Chief, Monitoring and Compliance;
Kathy.Cooper@dpi.nc.gov; (919) 807-3664
•
Karen Frazier, Fiscal Monitor;
Karen.Frazier@dpi.nc.gov ; (919) 807 - 3738
•
Gene Bruton, Accountant (Single Audit, DUNS/SAM, Certification);
Gene.Bruton@dpi.nc.gov ; (919) 807-3726
•
Pam Hill, Fiscal Monitor;
Pamela.Hill@dpi.nc.gov; (919) 807-3682