Presented By: James Halleran, CPA
Partner
June 16, 2015
Federal Single
What We Will Cover
Background and Effective Dates
Key Points of the Uniform Guidance for Federal Awards Key Points of the Combined Administrative
Requirements Guidance
Key Points of the Combined Cost Principles Guidance Key Changes in the 2015 OMB Compliance Supplement Questions
Implementation Timeline
December 26, 2013 • Issuance of Super Circular, effective immediate for all Federal agencies December 26, 2014 • New requirements to go into effect for all non-Federal agencies • Effective for all newawards/money (i.e. amendment to existing grant for additional monies)
Beyond
• New audit requirements for fiscal years beginning on or after December 26, 2014
Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards:
• New Uniform Guidance found in Title 2 CFR, Subtitle A, Chapter II, Part 200
• Supersedes prior OMB Circulars related to Federal awards
• October 27, 2011 – COFAR created to provide clarification on Uniform Guidance and work with OMB on rollout and related guidance
Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards:
• December 26, 2013 – OMB issued Final Uniform Guidance
• December 26, 2014 – Effective date for implementation – Applies to direct funding, subrecipients, and
pass-through entities
– Can result in different rules to be followed for various awards, depending on award period
• Audit requirements are effective for fiscal years beginning on or after December 26, 2014
Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards:
• Non-Federal entities will have to adopt the new administrative requirements and cost principles relating to all new Federal awards and to funding increments made after December 26, 2014
• Non-Federal entities may implement entity-wide system changes to comply with the guidance without penalty after December 26, 2014.
Consolidation of Guidance
Administrative Requirements • A-89 • A-102 • A-110 Cost Principles • A-21 • A-87 • A-122 Audit Requirements • A-133 • A-50Super
Circular
Uniform Guidance for Federal Awards
Basic Layout:
• 6 Subparts – A through F
– Includes general guidance, pre- and post-award
requirements, cost principles, and audit guidance
• 11 Appendices – I through XI
– Includes Data Collection Form (Appendix X) and
Compliance Supplement (Appendix XI)
Subpart A, Section 200.XX – Acronyms & Definitions
Subpart B, Section 200.1XX – General Provisions discusses
the purpose, applicability, exceptions, and effective date of the Uniform Grant Guidance. Section 200.112 NEW!!!!! Conflict of Interest policies required for Federal agencies, grantees must disclose any potential COI in writing
Subpart C, Section 200.2XX – Pre-Award requirements
covers administrative requirements directed at Federal agencies, encourages fixed amount awards.
Regulatory Changes – Pre-Award
• Public access requirement for all awards
greater than or equal to $25,000 be posted at www.USAspending.gov (200.211)
• FFATA – Federal Funding Accountability and Transparency Act
Uniform Guidance for Federal Awards
• Subpart D, Section 200.3XX –
Post-Award requirements cover the
new administrative requirements,
including internal control
clarification, program income
definition, procurement standards,
and subrecipient monitoring and
management.
Regulatory Changes – Post-Award
• Cash Management
– Interest earned on Federal advances
deposited into interest bearing accounts must be remitted to DHHS unless $500 or
less, in which case they may be used to offset admin expenses. (200.305 (b) (9))
Regulatory Changes – Post-Award
• Competitive Bidding (200.319)
– Local Preference
• The non-Federal entity must conduct procurements in
a manner that prohibits the use of statutorily or administratively imposed state or local geographical
preferences in the evaluation of bids or proposals, except
in those cases where applicable Federal statutes expressly mandate or encourage geographic preference.
• When contracting for architectural and engineering (A/E) services, geographic location may be a selection criterion, provided its application leaves an appropriate number of qualified firms, given the nature and size of the project, to compete for the contract. (200.319 (b))
Regulatory Changes – Post-Award
• Competitive Bidding (200.319) (Continued)
– Other Competition Items
• No excessive, unnecessary, or
unreasonable requirements (i.e. excessively specific eligibility requirements, excessive bonding requirements, unnecessary
Uniform Guidance for Federal Awards
Subpart E, Section 200.4XX –OMB Cost Principles
consolidated OMB Circulars A-21, A-87, and A-122, and includes direction over direct and indirect costs and
Uniform Guidance for Federal Awards
Subpart F, Section 200.5XX –Audit Requirements were revised to focus audits of grantees on risk and provide
greater transparency of audit results, and includes an increase of the audit threshold from $500,000 to $750,000, though the basic structure of the single audit process is unchanged.
Administrative Requirements
Subpart D, Section 200.3XX – Post Federal Award Requirements:
• Establish and maintain effective internal
controls over the Federal award in compliance with Green Book and COSO Framework
• Procurement standards include a written
conflict of interest policy and allowing for full and open competition for procurement of services or supplies.
Administrative Requirements
Subpart D, Section 200.3XX – Post Federal Award Requirements:
• Micro-purchases: Acquisitions under $3,000 ($2,000 for construction subject to Davis-Bacon) may be awarded without soliciting competitive quotations if the non-Federal entity considers the price to be reasonable. • Small purchase procedures: Acquisitions under
Simplified Acquisition Threshold (currently $150,000), must obtain quotes from an adequate number of
qualified sources.
Administrative Requirements
Subpart D, Section 200.3XX – Post Federal Award Requirements:
• Competitive proposals: Used for fixed price or cost-reimbursement contracts where the sealed bid method is not appropriate.
• Noncompetitive proposals: AKA Sole source. Must meet at least one of the criteria: (1) single source availability, (2) public emergency, (3) written
request has been made and approved by grantor, or (4) competition is determined to be inadequate.
Administrative Requirements
Subpart D, Section 200.3XX – Post Federal Award Requirements:
• Clarification of subrecipient vs.
contractor characteristics
• Use judgment in determining
relationship
Administrative Requirements
Subpart D, Section 200.3XX – Post Federal Award Requirements:
• Federal awarding agencies and pass-through entities are responsible for clearly identifying subawards and the relevant subaward information.
• Pass-through entities must evaluate subrecipient’s risk and develop an appropriate monitoring response. • Additional requirements can be
applied as a remedy for noncompliance.
Cost Principles
Subpart E, 200.4XX – Cost Principles: • Negotiated indirect cost rates will
remain in place until they are due to be re-negotiation. However, there is a potential option to extend for up to four years.
Cost Principles
Subpart E, 200.4XX – Cost Principles: • Non-Federal entities that have
never received a Federally negotiated indirect cost rate
(FNICR) will be permitted to charge a de minimis rate of 10% of total direct costs.
Cost Principles
Subpart E, 200.4XX – Cost Principles: • Compensation of personal
services has been modified to
reduce the administrative burden of documenting time and effort, as well as to streamline existing Circulars and eliminate conflicting guidance.
2015 Compliance Supplement
Compliance Requirement changes: Davis-Bacon Act, Real Property Acquisition and Relocation Assistance, FFATA Reporting
Two Part 3 – Compliance Requirements sections: “old” rules and subject to Uniform Guidance
requirements
• Transitional information will be included.
Part 6 – Internal Control will be updated for the new COSO internal control guidance
