Omni Circular Key Area #7: New Responsibilities of the Pass-Through Agency
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Omni Circular Key Area #7:Omni Circular Key Area #7:New Responsibilities of the New Responsibilities of the Pass-Through AgencyPass-Through AgencyBy Michael Brustein, [email protected] & Manasevit, PLLCSpring Forum 2014
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Show me the money!!!
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What was COFAR What was COFAR Thinking?Thinking?
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If A-133 cost and S/A costs If A-133 cost and S/A costs come from the same pot of come from the same pot of funds, perhaps SEAs will do a funds, perhaps SEAs will do a better jobbetter job
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Will pass-through Will pass-through agencies embrace agencies embrace “performance metrics” “performance metrics” more effectively?more effectively?
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A pass-through entity means a non-federal entity that provides a subaward to a subrecipient to carry out part of a federal program.
-200.74(e.g. ESEA, IDEA, CTE, AEFLA)
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Under EDGAR / A-102, pass-through responsibilities primarily described in 34 CFR 80.40 – Monitoring of Subgrantees
(Note – Part 76* on S/A programs will not change significantly)
*And Part 75
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But OMB / COFAR shifted many new responsibilities to the pass-through, over and above 80.40
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Omni Circular NPRM (February 1, 2013) proposed reduction of the number of types of compliance requirements in the compliance supplement
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Many pass-throughs opposed this reduction because of burden on them. OMB punted p. 78608
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Monitoring Responsibilities of Monitoring Responsibilities of the Pass-Through 200.328the Pass-Through 200.328 34 CFR 80.40 34 CFR 80.40 Non-federal entity is responsible
for oversight of the operations of the federally supported activities
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Measuring PerformanceMeasuring Performance“Performance Metrics” “Performance Metrics” 200.328(b)200.328(b)The non-federal entity must submit to
the pass-through performance reports:1. Comparing actual accomplishments to
the objectives established by the federal award
2. Where the accomplishment can be quantified (e.g. cost) it may be required
3. If performance trend data is useful to federal award agency, agency should include it as requirement for performance
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Measuring Performance Measuring Performance 200.328(b) (cont.)200.328(b) (cont.)4. Reasons why goals were not
met, if appropriate5. Explanation of other pertinent
information, such as cost overruns
6. Significant developments, problems, delays, adverse conditions
7. Favorable developments13BRUSTEIN & MANASEVIT, PLLC
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The Big QuestionThe Big QuestionHow will ED (OESE, OSERS, OPE,
OCTAE) reconcile the OMB required performance metrics with the current statutory / regulatory performance / accountability indicators?
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In many instances OMB performance metrics are more detailed
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Specific Requirements for Specific Requirements for Pass-Through (200.331)Pass-Through (200.331)Ensure that every subaward
contains the following information relating to federal award identification:1. Subrecipient name (must match
registered name in DUNS)2. Subrecipient DUNS # (Data
Universal Numbering System)3. Federal Award Identification
Number (FAIN)4. Federal Award Date
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Specific Requirements for Specific Requirements for Pass-Through (200.331) Pass-Through (200.331) (cont.)(cont.)5. Period of performance start and
end date6. “Amount of federal funds
“obligated” by this action”??7. “Total amount of federal funds
“obligated” to the subrecipient” ??
8. “Total amount of the federal award”
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Specific Requirements for Specific Requirements for Pass-Through (200.331) Pass-Through (200.331) (cont.)(cont.)9. Federal award project
description for FFATA purposes10.Name of federal awarding
agency, pass-through agency, and contact official
11.Is the award for “research and development” ?
12.The indirect cost rate (restricted vs. unrestricted)
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The pass-through must reference the requirements of the federal grant and any additional requirements imposed by the pass-through (i.e. state-administered programs)
(Incorporate by reference)
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Compare 200.331(a)(1)(xiii) Compare 200.331(a)(1)(xiii) to 200.331(a)(4) on indirect to 200.331(a)(4) on indirect costscostsWhat is the relevance of the
approved federally recognized indirect cost rate in state-administered programs with a non supplant provision?
Must pass-through negotiate restricted rates, and must sub-grantees use them?
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Pass-through must seek an assurance from subgrantees that access will be provided to records and financial statements
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NEW RISK NEW RISK MANAGEMENT MANAGEMENT REQUIREMENTS FOR REQUIREMENTS FOR PASS-THROUGHSPASS-THROUGHS
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Pass-through must evaluate each subrecipient’s risk of non compliance (federal statute / regulations / terms of award) for purpose of monitoring
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200.331200.331Risk Factors:
1. Subrecipient’s prior experience with the grant program
2. Results of previous audits3. New personnel or substantially
changed systems4. Results of federal monitoring
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200.331200.331Pass-through may impose conditions
on subgrant based on risk assessment:1. Shift to reimbursement2. Withhold payments until evidence of
acceptable performance3. Require more reporting4. Require additional monitoring5. Require additional technical or
management assistance 6. Establish additional prior approvals
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200.331200.331Pass-through must monitor its
subrecipients to assure compliance and performance goals are achieved
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200.331200.331Monitoring must include:
1. Review financial and programmatic reports
2. Ensure corrective action3. Issue a “management decision” on
audit findings if the award is from the pass-through
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200.331200.331Types of monitoring tools
(depending on risk assessment)1. Providing training and technical
assistance2. On-site reviews3. Arranging for “agreed upon
procedures” (less than $750,000)
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200.331200.331Pass-through must verify all
subrecipients (> $750,000) have single audits
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200.331200.331Pass-through must adjust its own
financial records based on audits, monitoring, on-site reviews
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200.331200.331Pass-through must consider taking
enforcement action based on non compliance:1. Temporarily withhold cash payments
pending correction2. Disallow all or part of the cost3. Wholly or partly suspend the award4. Recommend to federal awarding
agency suspension / debarment5. Withhold further federal awards6. Other remedies that may be legally
available
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200.339200.339The pass-through may terminate
the award for “cause,” notice and opportunity for hearing (200.340 and 200.341)
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Ready To Retire!!!
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Firm DisclaimerFirm DisclaimerThis presentation is intended solely to provide general information and does not constitute legal advice or a legal service. This presentation does not create a client-lawyer relationship with Brustein & Manasevit, PLLC and, therefore, carries none of the protections under the D.C. Rules of Professional Conduct. Attendance at this presentation, a later review of any printed or electronic materials, or any follow-up questions or communications arising out of this presentation with any attorney at Brustein & Manasevit, PLLC 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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