Brette Kaplan, Esq. bkaplan@bruman.com Erin Auerbach, Esq. eauerbach@bruman.com Brustein &...

Brette Kaplan, Esq.bkaplan@bruman.com

Erin Auerbach, Esq. eauerbach@bruman.com

Brustein & Manasevit, PLLCwww.bruman.comSpring Forum 2013

DEVELOPING POLICIES AND PROCEDURES FOR STATE AND LOCAL EDUCATIONAL

AGENCIES

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Why?

• A-133 Audits – Auditors must ask about policies and procedures• Some tests specifically require written policies and

procedures– Compliance Supplement, Part 6: Internal Controls• “The A-102 Common Rule and OMB Circular A-110 (2

CFR part 215) require that non-Federal entities receiving Federal awards (i.e., auditee management) establish and maintain internal control designed to reasonably ensure compliance with Federal laws, regulations, and program compliance requirements.”

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Why?

• Monitoring– Policies and procedures are evidence of

compliance under all program monitoring tools

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Why?

• Changes and Transitions of Staff– Training tool– Maintain consistency

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WHY?

• Compliant policies and procedures lead to:– Administering compliant programs and complying

with grants management requirements

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Logistics

• Where to start?• Who should be involved?• What is the process?• How long does it take?

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Rules and regulations

• Education Department General Administrative Regulations (EDGAR)– OMB Circular A-102

• Office of Management and Budget Circulars• State/Agency Policies and Procedures• Authorizing Statute

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Types of grants

• State Administered Grants– Any grant that is distributed by formula to eligible

states. EDGAR § 76.1

• Direct Grants– Any grant other than those that are distributed by

formula to eligible states. EDGAR § 75.1

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Building Blocks • Organization, Structure and Function• Grant Application Process • Financial Management System • Procurement• Inventory/Property Management• Time and Effort• Record Keeping • Monitoring• Audit Resolution • Programmatic Fiscal Requirements• Programmatic Requirements

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Organization Structure and Function

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Organization Structure and Function

• Organization Chart• Job Descriptions

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Organization Structure and Function • Do you have an organizational chart?• What are the offices, sections, divisions or

employees that have responsibility for grant administration?– What are their responsibilities?

• Are there any entities outside of the agency that have grant administration responsibilities? – What are those responsibilities?– How is relationship created? What are the terms?

• MOU/MOA?

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Grant Application Process

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Grant Application Process

• Grant Application Process– Applying for grants:

• A grant application should be written so that it can be managed within the regulations that apply

• Review every grant application with a grants management eye before submitting it

• Read and understand the Grant Award Notification (GAN)

• Direct Grants: – Whether or not formal acceptance is required, meet with

appropriate parties to be certain you want to accept the grant. – Make acceptance a conscious act. Things may have changed

between submission and notice of award – internally and externally.

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Grant Application Process

• How does the agency determine what grants to apply for?

• What is the process?• Who reviews and signs off on a grant

application?• What happens after a grant is awarded?

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Financial management system

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Financial Management System

• EDGAR § 80.20• Accounting System• Budget • Budget Revisions

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Financial Management System

• Allowable Costs – OMB Circular A-87– Specific items of cost

• Timely obligation of funds– Period of availability – EDGAR § 80.23– Obligations – EDGAR § 75.707 or 76.707– Carryover

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Financial Management System – What accounting systems are used?– What function does each system perform?– Who is responsible for managing budgets and accounts payable?– How are budgets loaded and tracked on the system? Timeline?– How do you ensure that expenditures are properly recorded in the system?– Is there a process for comparing budgets to expenditures?– How do you ensure that all expenditures are allowable?

• Travel – What is the process for requesting budget revisions?– How do you ensure that all expenditures are made within the period of

availability?– What happens to unobligated funds?– Does the system interface with the procurement and inventory system?– How are vendors paid? What is this process?

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Procurement

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Procurement

• EDGAR § 80.36 • Conflict of Interest• Open Competition • Solicitations• Vendor Selection • Contract Administration

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Procurement • What is your conflict of interest policy?• State and/or agency-specific requirements that

must be followed?• Approval for contracts?• Service contracts vs. contracts for goods?• Contract thresholds and process for entering into

contracts within each threshold amount?– Small purchase, etc.

• What clauses and/or certifications must be in each contract?

• How do you ensure that the terms of the contract are met?

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Inventory

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Inventory

• Property classifications– Computing Devices

• Inventory procedure• Lost or stolen items• Disposition

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Inventory

• How do you classify and define property?– Equipment, supplies, non-consumables

• What items must be inventoried and tagged?– Detailed inventory records

• What is the inventory process?• How frequently is a physical inventory conducted?• What is the policy regarding lost or stolen items?• Are there procedures to transfer equipment between

programs?• What are the disposition procedures?

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Time and Effort

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Time and effort

• OMB Circular A-87• Semiannual Certification• PARs• Cost Objective

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Time and effort

• How do you document time and effort?– Employees that work on one cost objective?– Employees that work on multiple cost objectives?

• Who must sign the forms?• Where are the forms turned in?

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Record Keeping

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Record Keeping

• EDGAR § 80.42• Statute of Limitations • State Policy• Agency Policy

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Record Keeping

• How long must records be maintained?• How are records maintained?– Electronic, hard copy

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Monitoring

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Monitoring

• Risk-based – Risk factors

• Desk reviews• Onsite reviews• Follow-up

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Monitoring • Monitoring of agency vs. monitoring of subrecipients?• Who is responsible for monitoring? Fiscal? Programmatic?• What gets monitored?• How do you determine which subrecipients will be

monitored?• How often does monitoring occur?– Site visits, desk reviews, self-assessments

• What is the process – from notification to issuing report? – Timeline?

• How do you ensure that findings are resolved?– Corrective action plan – Closeout letter resolving finding– Future monitoring Brustein & Manasevit, PLLC 34

Audit Resolution

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Audit Resolution

• Single Audit • OMB Circular A-133

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Audit Resolution

• Who is responsible for overseeing OMB A-133 audit compliance and resolution?

• What is the audit process?• How are findings resolved?• Review of subrecipients’ A-133 audits?

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Programmatic Fiscal Requirements

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Programmatic Fiscal Requirements

• Supplement not supplant• Maintenance of effort• Matching• Hold harmless

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Programmatic Fiscal Requirements

• How do you ensure compliance with programmatic fiscal requirements?

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Programmatic Requirements

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Programmatic Requirements

• Programmatic compliance– Allocations to subrecipients– Allowable costs under grant program– Application process– Other

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Programmatic Requirements

• How does your agency ensure compliance with the specific requirements of the grant program?

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Now what?

• Training• Review and revise• Where are policies and

procedures located?

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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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