Omni Circular Key Area #6:
Allowability of Meals and
Conferences
Jennifer Mauskapf, Esq.
jmauskapf@bruman.com
Brustein & Manasevit, PLLC
Spring Forum 2014
Agenda
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Current Rule
OIG Concerns
ED Guidance
Omni-Circular Rules
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Current Law: A-87 / A-21
• Costs of meals and transportation if primary purpose of
meeting / conference is dissemination of technical information
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OIG Concerns – Meetings and Conferences
• OIGs have found conferences held by recipients where perperson cost of daily catering was between 189% and 400% of
applicable location’s federal per diem for meals and incidental
expenses
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OIG Concerns – Meetings and Conferences
• OMB should limit meal costs to federal per diem rates and
document a cost comparison of at least three sites to
determine most cost-advantageous location
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ED GUIDANCE ON USE OF FEDERAL
FUNDS FOR FOOD
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ESEA Title II, Part A FAQ ‘Guidance’
• Issued May 2013 via e-mail
• Available on-line:
http://www2.ed.gov/policy/fund/guid/gposbul/faqs-granteeconferences-may-2013.doc
• ED Effort to take “greater care in enforcing and monitoring” these
costs
• Title II, Part A office is responsible for the largest amount of grant
funds related to professional development
• Very high burden of proof to show that paying for food is necessary
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ESEA Title II, Part A FAQ ‘Guidance’ (cont.)
• Q&A #3: Consider whether hosting a meeting or
conference is the most effective or efficient way
to achieve the desired result.
• Q&A #6:
• When hosting a meeting, structure the agenda so there is time
for participants to purchase their own food, beverages, or
snacks.
• Consider a location in which participants have easy access to
food and beverages.
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ESEA Title II, Part A FAQ ‘Guidance’ (cont.)
• Q&A #7: In virtually all cases, using grant funds to pay
for food and beverages for receptions and
“networking” sessions is not justified
• Q&As #8, 9: Beware of ‘free’ food and beverages embedded in a
contract for meeting space; ask hotel to ‘back out’ such costs.
• Q&A #13: May offer meeting participants the option of paying for
food and beverages and arrange for items to be available at the
meeting.
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Weight of this Guidance?
• Does not meet standard of “Good Guidance” (OMB Bulletin
No. 07-02)
• SASA Deputy Director clarified applicability of this guidance in
June 2013:
– This new guidance is generally intended to apply to professional meetings, including
those that you may have with LEA staff, and not to school-based events such as a Title I
parent meeting. As a result, as long as there is a connection to a programmatic purpose
and the cost is reasonable, an LEA may continue to provide food at Title I parent
meetings.
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ED Office of General Counsel Mythbusters
• National Association of State Title I Directors, February 2014
• MYTH: Title I, Part A funds may not be used for food at
meetings
• HOWEVER: Very high burden of proof to show that paying for
food and beverages with Federal funds is necessary to meet
the goals and objectives of a Federal grant.
• Structure agenda to allow participants time to purchase their own food
• Consider a location with easy access to food
• ED Clarification letter to FAQs: http://www.bruman.com/wp-content/uploads/2010/10/Use-ofFunds-meals-02-20-14.pdf
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ED Office of General Counsel Mythbusters (cont.)
• “Working Lunch” may be allowable. Factors to consider:
1. Is a working lunch necessary?
2. Is the portion of the agenda to be carried out during lunch substantive and integral to
the overall purpose of the meeting?
3. Is there a genuine time constraint that requires the working lunch?
4. If a working lunch is necessary, is the cost of the working lunch reasonable?
5. Has the SEA or LEA carefully documented that a working lunch is both reasonable and
necessary?
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OMNI-CIRCULAR RULES IMPACTING
CONFERENCES AND FOOD
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Conferences
Omni-Circular: Section 200.432
• Conference is…
– A meeting, retreat, seminar, symposium, workshop or event
– Whose primary purposes is the dissemination of technical information beyond the nonFederal entity and
– Is necessary and reasonable for successful performance under the Federal award
• Allowable conference costs may include rental of facilities,
speakers’ fees, costs of meals and refreshments, local
transportation and other items incidental to such conferences
unless restricted by terms of Federal award.
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Section 200.432, Conferences (cont.)
• Conference hosts/sponsors must exercise discretion and
judgment in ensuring that conference costs are appropriate,
necessary and managed in a manner that minimizes costs to
the Federal award.
• Costs of identifying, but not providing, locally available
dependent-care resources are allowable.
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Travel Costs
Omni Circular: Section 200.747
• Expenses for transportation, lodging, subsistence, and related
items incurred by employees who are on travel for official
business
• May be charged:
– On a per diem or mileage basis;
– Actual Costs; or,
– A combination of the two—provided the method used is applied to an entire trip and
not to selected days of the trip.
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Section 200.747, Travel Costs (cont.)
• To charge to Federal award, must evidence:
– Participation of the individual is necessary to the Federal award; and
– The costs are reasonable and consistent with the entity’s written travel
policy.
• In the absence of established policy, the rates
established under 5 U.S.C. 5701-11, by GSA, or by
the President must apply to travel under Federal
awards
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Section 200.747, Travel Costs (cont.)
• May only pay for the “basic least expensive unrestricted
accommodations class offered by commercial airlines”, UNLESS:
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Requires circuitous routing;
Requires travel during unreasonable hours;
Excessively prolongs travel;
Results in additional costs that would offset the transportation savings; or,
Not reasonably adequate for traveler’s medical needs.
• Must justify and document these conditions on a case-by-case basis in
order for the use of first-class or business-class airfare to be allowable.
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Travel Costs
Omni Circular: Section 200.747
• Dependent care costs above and beyond regular dependent
care that directly result from travel to conferences are
allowable provided the costs are:
– Direct result of the individual’s travel for the Federal award;
– Consistent with entity’s documented travel policy;
– Temporary during the travel period.
• Travel costs for dependents are unallowable, except for travel
of duration of six months or more with prior approval.
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DISCLAIMER
• This presentation is intended solely to provide general
information and does not constitute legal advice. Attendance
at the presentation or later review of these printed materials
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.
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