Grants Compliance from an Agency Perspective
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Transcript of Grants Compliance from an Agency Perspective
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Grants Compliance from an Agency Perspective
Governor's Grants Office
Higher Education ConferenceBowie State University
May 22, 2012
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Ask Early, Ask Often
• Jeremy Leffler– Outreach Specialist, Policy Office
– Division of Institution & Award Support
– Office of Budget, Finance & Award Management
– [email protected]; 703.292.8075
– Email general policy questions to: [email protected]
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Mathematical& PhysicalSciences
(MPS)
Geosciences(GEO)
Engineering(ENG)
Computer &Information Science &
Engineering(CISE)
BiologicalSciences
(BIO)
Office of theInspector General
(OIG)
DirectorDeputy Director
National Science Board(NSB)
Office of Cyberinfrastructure
Office of Diversity & Inclusion
Office of the General Counsel
Office of Integrative Activities
Office of International Science & Engineering
Office of Legislative &Public Affairs
Office of Polar Programs
Social, Behavioral
& EconomicSciences
(SBE)
Education & Human
Resources(EHR)
Budget, Finance & Award
Management(BFA)
Information& Resource Management
(IRM)
NSF Organizational Chart
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Office of Budget Finance & Award Management (BFA)
Office of Budget, Finance & Award Management
Office of Budget, Finance & Award Management
Division of Institution & Award SupportDivision of Institution & Award Support
PolicyPolicy ClearanceClearance OutreachOutreach
Division of Grants & AgreementsDivision of Grants & AgreementsDivision of Acquisition & Cooperative Support
Division of Acquisition & Cooperative SupportDivision of Financial ManagementDivision of Financial ManagementBudget DivisionBudget Division
Policy OfficePolicy OfficeSystems OfficeSystems Office Cost AnalysisCost Analysis
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Accountability & Transparency
• Drivers
• Current Landscape
• Desired Outcomes
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History and Timeline
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COFAR – Goals• Minimize risks of waste, fraud, and abuse
of Federal funds
• Minimize administrative burden for recipients and agencies
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COFAR – Organization• OMB Comptroller (Co-Chair)• Eight Federal agencies
– Department of Agriculture– Department of Education– Department of Energy– Department of Health & Human Services (Co-Chair)– Department of Homeland Security– Department of Housing & Urban Development– Department of Labor– Department of Transportation
• Rotating agency– National Science Foundation
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OMB – Federal Register Notice• Published in February with comments due
April 30, 2012.
• Requesting public comment on reform ideas
• Reforms highlighted focus on three areas:– Reforms to audit requirements;– Reforms to cost principles;– Reforms to administrative requirements.
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Award Monitoring and Business Assistance at NSF
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NSF Award Portfolio• $25.5 billion in total
award funding
• 42,192 active awards– Standard and continuing
grants
– Cooperative agreements
– Graduate research fellowships
– Other awards
• 3,197 awardees– Universities / 4-year
colleges
– Non-profit organizations
– For-profit organizations
– Community colleges
– Other awardees
Award information as of July 2, 2010
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Risk-based portfolio monitoring strategy
The portfolio monitoring strategy contains three key components
•Risk Assessment
•Comprehensive Monitoring Activities
•Tracking Monitoring Results and Gathering Feedback
Ris
kA
sses
smen
t Monitorin
gA
ctivities
Feedback
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From Awards To Awardees
Risk-based Awardee Ranking
Prioritize monitoring based on: - Highest risk points - Highest dollars - Number of awards
Risk-Based Award Ranking
Category A~7% of AwardeesRisk Points ≥ 32Total Obligation > $500K
42,192 AwardsRanked by risk points
Category B~23% of Awardees
16-32 Risk Points
Total Obligation > $500K
Category C~70% of Awardees
NSF not Cognizant
Risk Points < 16 or
Total Obligation < $500K
3,197 Awardees Ranked by risk points
1
Risk Adjustment Screens1. Institutional factors2. Prior monitoring activities
and results3. Award administration and
program feedback
Risk Adjustment Criteria
Awardee Risk Categories
NSFAward
Portfolio
NSF Annual Risk Assessment
1 2 3
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NSF Monitoring Activities
Desk Reviews
Federal Financial Report (FFR) Transaction Testing
Grants and Agreements Monitoring
Automated Report Screening
SiteVisits BSRs
Percentage of Portfolio
AdvancedMonitoring
BaselineMonitoring
Incr
easi
ng
ly f
ocu
sed
an
d t
arg
eted
Category
B *
Category A
* Category B selected for advanced monitoring on resource-available basis
Category C
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Award Monitoring: Site Visit Targeted Review Areas• ARRA Review• Consultants• Cost Sharing• Final Project Reports• Fringe Benefits• Indirect Costs• Participant Support Costs• Procurement• Program or Award-Related Income• Property and Equipment• Special Terms & Conditions• Subawards and Subrecipient Monitoring• Time and Effort Records• Travel
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Top Compliance Issues Identified in NSF Business Assistance Program
• Time and Effort– Written policies and procedures– Time and effort documentation
system– Inclusion of administrative support
labor costs as direct charges to NSF awards
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Top Compliance Issues Identified in NSF Business Assistance Program
• Subawards and Subrecipient Monitoring– Inadequate pre-award
documentation;– Missing subaward agreement;– Judgmental nature of adequate
monitoring
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Top Compliance Issues Identified in NSF Business Assistance Program
• Participant Support Costs– Failure to properly document that funds
have only been expended for these budgeted costs;
– Lack of written policies and procedures for documentation;
– Failure to document attendance of participants;
– Not tracking costs in separate accounts
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Keys to Success for Awardees
• Know the requirements (award letter, award terms and conditions, OMB Circulars)
• Good accounting practices – accumulation and segregation of costs
• Focus on the objectives of the project/program
• Document approvals and conversations between awardee and NSF
• Ask Early and Ask Often!
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Ask Early and Ask Often!
• Policy Office– [email protected] – 703.292.8243
• Cost Analysis & Audit Resolution– [email protected] – 703.292.8243