2CFR215 (A-110)2CFR215 (A-110)

Uniform Administrative Requirements for Grants and Agreements with Institutions of Higher Education, Hospitals, and Other Non-Profit

Organizations

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Introduction to OMB Circular Introduction to OMB Circular

A-110 A-110 Purpose: Establish uniform administrative

requirements;Establish consistent application of

the requirementsPrevent deviations or additional

requirements without OMB approval

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Federal Proposal Federal Proposal Considerations: OMB Circular Considerations: OMB Circular

A-110A-110 Uniform Administrative Requirements for Grants and Agreements with Institutions of Higher Education and Other Non-profit Organizations

•Subpart A – General•Subpart B - Pre-award requirements•Subpart C - Post-award requirements•Subpart D - After the award

requirements•Appendix A - Contract provisions

A-110: Subpart A - General A-110: Subpart A - General

Effect of A-110 on other issuances◦ Awards subject to A-110,

all other administrative requirements codified in program regulations, manuals, handbooks inconsistent with this circular are superseded, unless required by statute or authorized by the deviations provision of this circular

Deviations◦ Exceptions to A-110

are permitted in unusual circumstances by OMB

Subawards◦ A-110 should be

flowed down to subrecipients which are normally subject to it

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A-110: Subpart B - Pre A-110: Subpart B - Pre Award RequirementsAward RequirementsPurpose:

◦ Establishes instructions and forms used in applying for federal assistance

Pre Award Policies: ◦ Agency decides on appropriate award

instrument◦ Grant used when principal purpose is to

provide support to accomplish a public purpose

◦ Cooperative Agreement same as a grant, except substantial involvement is expected by the awarding agency

◦ Contract used only when principal purpose is acquisition of property or services for direct benefit of Government

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A-110: Subpart B - Pre A-110: Subpart B - Pre Award Requirements Award Requirements (continued)(continued) Forms Used When Applying For Assistance:

◦ Agencies must comply with 5CFR part 1320 - “Controlling Paperwork Burdens on the Public”

◦ Applicants shall use SF-424 series, or forms and instructions prescribed by agency

◦ Programs covered by E. O. 12372 “Intergovernmental Review of Federal Programs” -- applicants must complete appropriate sections of SF 424 or if agency not using SF-424, whether E.O. 12372 review is required.

Debarment And Suspension◦ Agencies and recipients must comply with the non-

procurement common rule

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A-110: (continued)A-110: (continued)

Special Award Conditions◦ Additional requirements may be imposed

by agencies if: Recipient has history of poor performance Recipient is not financially stable Recipient has management system that does not

meet standards Recipient has not conformed with terms and

conditions of previous award Recipient is not responsible

◦ Recipient must be notified in writing◦ Special conditions removed once

corrections are made

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A-110: Subpart C - Post A-110: Subpart C - Post Award RequirementsAward RequirementsPrescribes standards for financial and

program management of sponsored research awards◦ Standards for financial management systems◦ Methods for making payments◦ Cost sharing and matching ◦ Program income◦ Revision of budget and program plans◦ Non-federal audits◦ Allowable costs◦ Fund availability◦ Conditional Exemptions

A-110: Subpart C – A-110: Subpart C – continuedcontinuedPrescribes standards for financial and

program management of sponsored research awards◦ Property standards for the management and

disposition of Federally-funded property.◦ Title to equipment◦ Property management standards◦ Feds maintain a royalty-free nonexclusive

right to copyrighted material.◦ Procurement Standards◦ Reports and Records◦ Termination and Enforcement

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Standards for financial Standards for financial management systemsmanagement systems

◦ Relate financial data to performance data◦ Recipient’s financial system must provide:

Financial results of each sponsored project Identification of source & application of funds Control & accountability over all funds, property &

other assets Comparison of outlays to budget amounts

◦ Procedures to minimize time between transfer of funds and the disbursement of those funds

◦ Procedures for determining reasonableness, allocability and allowability of costs

◦ Accounting records supported by source documentation

Payment Methods

Payment times should be minimized between the time of invoicing and Federal reimbursement.

Advances are possible; but cost reimbursement is preferred method.

Advances are to be maintained in interest bearing accounts.

Stipulates which Federal forms should be used.

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Cost SharingCost Sharing

…represents that portion of the total project costs of a sponsored agreement paid for by the institution, rather than by the sponsor.

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Proposing Cost SharingProposing Cost Sharing

Mandatory Cost Sharing is Required by the sponsor as a condition of obtaining an award.

VoluntaryCost Sharing is Offered to increase competitiveness against peer institutions for an award or for other non-mandatory reasons CommittedOnce Mandatory or Voluntary Cost Sharing is Proposed to a sponsor, and Accepted in an award it becomes committed!

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Cost SharingCost SharingMandatory and Voluntary committed

cost sharing must be monitored, verified and included in the F&A rate calculation◦ Lowers the F&A rate and decreases recovery of

F&A revenueVoluntary uncommitted cost sharing

◦ Effort put forth by a PI or senior researcher on a project that was not pledged in the proposal or required by the award (e.g. the PI committed 5% effort but actually devoted 20% effort, the 15% difference would be considered voluntary uncommitted cost sharing)

◦ Does not have to be included in the F&A rate

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Examples of Cost Sharing Examples of Cost Sharing

Effort - faculty, staff or student (Example, “30% effort with 10% of salary charged to the project”)

CashThird Party

ContributionsUnrecovered F&A

costs (can be used if agency has approved)

Volunteer Services: Necessary and integral part of project

Establishing values for contributions of services and property (in accordance with applicable cost principles)

Other employee services (valued at regular rate of pay plus fringe benefits)

Donated supplies (must be reasonable and at fair market value)

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Expenditures That Can NOT Be Expenditures That Can NOT Be Proposed as Cost SharingProposed as Cost SharingUnallowable costs

◦Salaries over the salary cap◦Cost overruns/overdrafts

Purchase price of equipment in current inventory

Other items your institution might prohibit?

If a sponsor wouldn’t pay for it anyway, it can’t be proposed as cost sharing.

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Cost Sharing Cost Sharing ConsiderationsConsiderationsCash and third party in-kind contributions must meet all the following criteria:

◦ Are verifiable from the recipient’s records◦ Cannot be used as cost sharing on other federal

projects◦ Are necessary and reasonable for

accomplishment of project objectives◦ Are allowable under the cost principles◦ Are not paid by the Federal government under

another award ◦ Are provided for in the approved budget when

required by Federal agency◦ Conform to other provisions of A-110, as

applicable

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Cost Sharing IssuesCost Sharing IssuesA-110 requires that actual expenditures

must be verifiable from the recipient's records.

A-21/CAS requirements◦ All costs of a project must be classified

consistently, regardless of the funding source◦ Do we classify all cost sharing consistently with

the project costs?◦ Cost sharing can have a significant impact on

the F&A rate, auditors and negotiators want institutions to capture all cost sharing, mandatory and voluntary

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Potential Problems Potential Problems Associated with Cost Associated with Cost SharingSharingDo effort reports capture cost

shared effort (both mandatory and voluntarily committed)?

Are the same cost sharing funds used to meet the matching requirements on more than one project?

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A-110: Program A-110: Program IncomeIncome

Recipients must account for income related to projects financed by the federal government

Recipients may retain and use income if allowed by agency by:

◦ Adding to the project to further the objectives◦ Financing the non-federal share◦ Deducting from the total cost of the project

If agency does not specify in award:1. Support research - added to project2. All others - deducted from the cost of the

project

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A-110: Program Income A-110: Program Income (continued)(continued)

No obligation to government for income earned after end of project

Costs for generation of income may be deducted from gross income

No obligation to government for income earned from license fees and royalties

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A-110: Budget and Program A-110: Budget and Program ChangesChanges

Budget and Program Plan Revisions

Deviations must be reported and prior approval requested

Prior approval required in non-construction awards as follows:◦Change of scope◦Change of Key Personnel

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A-110: Budget and A-110: Budget and Program Changes Program Changes (continued)(continued)

◦Absence of 3 months or 25% reduction in time of Key Personnel

◦Additional funding◦Transfer of F&A to direct or vice versa◦Inclusion of costs requiring prior

approval in Circulars◦Transfer of funds allotted for training◦Subawards

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A-110: Budget and A-110: Budget and Program Changes Program Changes (continued)(continued)No other prior approvals can be imposed Agencies authorized to waive approvals

except for:◦ Change in scope of work◦ Additional funding

Transfers between budget line items may be restricted if award is $100,000 or more and transfer exceeds 10% of approved budget

Agency should respond to request within 30 days from the date of receipt of the request

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Expanded AuthoritiesExpanded Authorities

Federal Demonstration PartnershipGroup of Universities, Federal Agencies, and Others (including NCURA) focused on improving Federal grants management

Expanded Authorities Delegated approvals to the grant recipients in 7 areas:1. Pre-award Costs2. Domestic Travel3. Foreign Travel4. Equipment5. Carry-Over of Funds6. No-Cost Extensions7. Rebudgeting

Not all agencies or programs have delegated these approvals

A-110: Reports And A-110: Reports And RecordsRecords

Sets forth procedures for monitoring and reporting financial and program performance and the

necessary standard reporting forms (including record retention requirements). (See C. 50 to 53)

Monitoring And Reporting Program Performance Recipients are responsible for:

◦ Managing and monitoring each project, program, subaward, function or activity supported by the award; and

◦ Ensuring subrecipients have met the audit requirements delineated in C. 26.

Time of reporting:◦ Not more frequently than quarterly or less

frequently than annually.

A-110: Reports And A-110: Reports And Records (Cont’d)Records (Cont’d) When required, performance reports (technical reports) shall

generally contain:◦ Comparison of actual accomplishments with goals

established for the period, the finding or both;◦ Reasons why established goals were not met; and◦ Other information including, when appropriate, analysis

and explanation of cost overruns or high unit costs.

Recipient shall notify the federal awarding agency when:◦ Events occur that have a significant impact on the

project or program; and/or◦ Problems, delays or adverse conditions occur that

materially impair the ability to attain program objectives.

Site visits

A-110: Reports And A-110: Reports And Records (Cont’d)Records (Cont’d)

Financial ReportingStandard forms are specified for obtaining

financial information.

Financial Status Report (SF-269)◦ Federal Agency has option to use Request for

Advance or Reimbursement or Cash Transactions Report if they provide adequate information.

◦ FSR is required at completion of project.◦ May require cash or accrual basis.◦ Timing: 30 days after the conclusion of each

specified reporting period for quarterly and semi-annual reports and within 90 days of annual or final reports.

A-110: Reports And A-110: Reports And Records (Cont’d)Records (Cont’d)

Report of Federal Cash Transactions (SF-272)

◦ For advances through letter of credit and reporting within 15 days after each quarter.

◦ May require explanation of cash in excess of 3 days needs, legislative requirements, or accounting standards questions.

◦ Machine readable formats allowed.

Request for advance or reimbursement (SF-270)

◦ Used only where letter of credit or predetermined advance method is not used.

A-110: Reports And A-110: Reports And Records (Cont’d)Records (Cont’d)

Retention And Access Requirements For Records

Federal awarding agencies shall not impose any other record retention or access requirements upon recipients.

Financial records, supporting documents, statistical records and all other records shall be retained for a period of THREE years, with the following exceptions:◦ Litigation requires retention until all matters have been

resolved;◦ Real property and equipment records retained three years

after final disposition of the property; and/or◦ When records are transferred to the agency, the retention

requirement ends.◦ F&A cost rate proposals, cost allocation plans have unique

requirements.

A-110: Reports And A-110: Reports And Records (Cont’d)Records (Cont’d)

With agency approval, copies can be substituted for original records.

When does the clock start?◦ Awards - Date of submission of the final expenditure

report or, for awards that are renewed quarterly or annually, from the date of the submission of the quarterly or annual financial report;

◦ F&A Costs - Date of submission of a proposal for negotiation; the end of the fiscal year if not submitted for negotiation.

Access to records by agency, inspector general, or comptroller general is allowable.

Agencies may not limit public access to recipients' records without justification.

A-110: Termination And A-110: Termination And EnforcementEnforcement

Sets forth uniform suspension, termination andenforcement procedures (See C. 60 to 62)

Termination◦ By the federal awarding agency◦ By the federal awarding agency with the consent of the

recipient◦ By the recipient

Enforcement◦ Remedies for noncompliance◦ Hearings and appeals◦ Effects of suspension and termination◦ Relationship to debarment and suspension (See B,13)

Regulations provide information on how to proceed with termination for cause and termination for convenience

A-110: Subpart D - After Award A-110: Subpart D - After Award RequirementsRequirements

Purpose:◦ Establish procedures for close-outs, disallowances and

adjustments

Close-out:◦ All reports must be submitted within ninety days◦ All obligations must be liquidated within ninety days◦ Agency must make prompt payment◦ Recipient shall refund any unobligated cash advance◦ Agency makes adjustments after reports are received◦ Recipient must account for real and personal property◦ Agency retains right to recover disallowances until final audit

Subsequent Adjustments◦ Close-out does not affect:

Right of agency to disallow and recover funds Obligation of recipient to return funds due as a result of refunds Audit requirements Property management requirements Record retention

A-110: Subpart D - (Cont’d)A-110: Subpart D - (Cont’d)

Collection of amounts due

Funds paid to recipient in excess of final award, if not returned agency, may:◦ Be offset against other awards◦ Withhold advance payments◦ Other actions permitted by

statute◦ Agency may charge interest

A-110: Appendix AA-110: Appendix A Provisions for contracts awarded by Provisions for contracts awarded by recipient.recipient.

All contracts, awarded by a recipient shall contain the following provisions (as applicable):◦ Equal Employment Opportunity◦ Copeland “Anti-Kickback” Act◦ Davis-Bacon Act◦ Contract Work Hours and Safety Standards

Act◦ Rights to Inventions Made Under a Contract

or Agreement◦ Clean Air Act◦ Byrd Anti-Lobbying Amendment◦ Debarment and Suspension

Recap of OMB Circular A-Recap of OMB Circular A-110: Highlights110: Highlights

Uniform Administrative Requirements for Grants

and Agreements with Institutions of Higher Education and Other Non-profit

Organizations

Financial and programmatic managementCost sharingProgram incomeProperty standardsProcurement standardsReporting and Records

ResourcesResources

US Government Printing Office/FDSYS (electronic CFRs)◦ http://www.gpo.gov/fdsys/

◦ Select the year

◦ Select “Title 2 – Grants and Agreements

◦ Pick your type – pdf, XML, or other

◦ In the pdf, scroll down to about page 4, that’s where Part 215 (A-110) begins

FDSYS XML link for A-21◦ http://www.gpo.gov/fdsys/pkg/CFR-2010-title2-vol1/xml/CFR-

2010-title2-vol1-chapII.xml

Contact InformationContact Information

Maggie GriscavageEmail: gmgriscavage@alaska.edu

Acknowledgment:◦ Liberally borrowed, by permission, from the NCURA FRA Workshops.

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