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Title: Introduction to Grants and Cooperative Agreements PY220


1
Introduction to Grants and Cooperative
Agreements (PY220)
  • Office of the Procurement Executive (A/OPE)
  • Mr. Corey M. Rindner,
  • Procurement Executive

2
Introduce Your Neighbor
  • Find out
  • Name
  • Position/Section
  • How long with USG
  • Experience with Grants
  • One item you would like to discuss about grants
    during this course
  • Report out to class 1 minute each

3
Office of Procurement Executive / Federal
Assistance Staff (A/OPE/FA)
  • Georgia Hubert, Director,
  • HubertGK_at_state.gov, 703-812-2526
  • Kimberly S. Butler, Grants Policy Analyst,
  • ButlerKS2_at_state.gov, 703-516-1754
  • Phyllis Swann, Grants Policy Analyst,
  • SwannPA_at_state.gov, 703-516-1691

4
A/OPE/FA Staff
  • Joanna Snearly, Grants Policy Analyst,
  • SnearlyJP_at_state.gov, 703-516-1989
  • Anita Exum, Grants Policy Analyst
  • ExumAE_at_state.gov, 703-875-5119
  • Gregory Young, Grants Management Specialist,
  • YoungGM_at_state.gov, 703-516-1988

5
A/OPE/FA Staff
  • Steve Galiotto, Grants Management Specialist,
  • GaliottoSJ_at_state.gov, 703-875-7499
  • Barbara Fox, Grants Management Specialist,
  • FoxBT_at_state.gov, 703-875-7169
  • Jennifer King, Grants Management Specialist,
  • KingJS_at_state.gov, 703-516-1886

6
Module 1
  • Introduction to Assistance
  • 1.1 History of Grants
  • 1.2 The Federal Grant and Cooperative Agreement
    Act of 1977
  • 1.3 Categories of Grants
  • 1.3.1 Discretionary Grants
  • 1.3.2 Mandatory Grants

7
History of Grants
  • Historically, the United States Government
    performed most of its functions using its own
    employees.
  • When American industry grew, the Federal
    Government began to rely on private industry to
    provide goods and services for federal agencies.
  • These goods and services were provided by a
    contract.

8
History of Grants
  • The first grants were grants of property for
    schools, roads, canals and railroads known as
    Land Grants.
  • Agricultural land grant colleges, which fell
    under the Morrill Act of 1862, were the most
    popular recipients.
  • During the Great Depression in the 1930s,
    "grant-in-aid" programs were developed to aid
    individuals, such as the unemployed.

9
Getting and Giving
  • Some grants were aimed at benefiting the
    recipient, some were designed to provide a
    service or benefit to the government.
  • However, federal agencies occasionally used
    grants to avoid the requirements of the
    procurement system. Many agencies began to use a
    cooperative agreement to exert more control
    over grant programs but avoid what they perceived
    as inflexible procurement rules.
  • In 1969 Congress established the Commission on
    Government Procurement (COGP).
  • A 1972 report by the COGP recommended that
    legislation clarify the differences between
    procurement and assistance and distinguish
    between grants and cooperative agreements.

10
The Federal Grant and Cooperative Agreement Act
of 1977
  • This act was designed to
  • Distinguish the proper tools to use when the
    Federal Government works with a recipient for
    federal funding (contract, grant or cooperative
    agreement)
  • Bring about uniformity in the selection and use
    of procurement contracts, grants and cooperative
    agreements
  • To curb the misuse of assistance instruments in
    procurement situations.
  • Agencies must have specific statutory authority
    to enter into grants or cooperative agreements

11
The GAO Speaks Out on Acquisition
"Every agency has inherent authority to enter
into contracts to procure goods and services for
its own use, as long as the purpose of the
procurement is reasonably related to the agencys
mission. -GAO (Government Accountability
Office), Principles of Federal Appropriation Law,
2d ed., at 10-11
12
The GAO Speaks Out on Assistance
However, there is no comparable inherent
authority to give away the governments money or
propertyto benefit someone other than the
government this must be authorized by Congress.
Therefore, the agencys basic legislation must be
studied to determine whether an assistance
relationship is authorized at all, and if so,
under what circumstances and conditions." -GAO
(Government Accountability Office), Principles of
Federal Appropriation Law, 2d ed., at 10-11
13
Types of Grant Programs
  • Grants can be categorized by purpose. For example
  • Public Diplomacy grants
  • Research grants
  • Anti-drug grants
  • Anti-trafficking grants
  • Reconstruction grants

14
Discretionary Grants
  • Discretionary grants permit the Grants Officer
    to exercise wide latitude and judgment in
    selecting both the projects to be supported and
    the recipients.

15
Mandatory Grants
  • Mandatory grants MUST be made to organizations,
    which meet statutory eligibility and compliance
    requirements and agency implementing regulations.

16
Assistance Instruments
  • Within federal assistance, there are several
    kinds of awards, each of which serves a different
    purpose.
  • Grants
  • Cooperative Agreements
  • Voluntary Contributions

17
Module 1 Review Questions
  • Explain the reason that Congress established the
    Commission on Government Procurement in 1969.
  • Explain the main purposes of the Federal Grant
    and Cooperative Agreement Act of 1977.
  • Explain the difference between a contract, a
    grant, and a cooperative agreement.
  • Explain the difference between discretionary and
    mandatory grants.

18
Module 2
  • Authorities that Govern Federal Assistance
  • 2.1 Applicable Regulations
  • 2.1.1 The Role of Congress
  • 2.1.2 The Office of Management and Budget (OMB)
  • 2.1.3 Code of Federal Regulations (CFR)
  • 2.1.4 Department of State Public Diplomacy
    Authorities
  • 2.1.5 Catalog of Federal Domestic Assistance
    (CFDA)

19
The Role of Congress
  • Financial assistance is provided to Federal
    government agencies through congressional
    authorizations and budget appropriations.
  • Through program legislation, Congress controls
    this by placing limits on appropriations and
    designating which agencies are authorized to
    provide assistance for which programs.

20
The Five As
  • How money moves in the Federal Budget
  • Authorization
  • Appropriation
  • Allocation
  • Apportionment (or Transfer 632a/b)
  • Allotment
  • Obligation

21
DoS Public Diplomacy Authorities
  • The key public diplomacy authorization
    legislation is found in the following
    authorities
  • Smith-Mundt The U.S. Information and
    Educational Exchange Act of 1948, P.L. 80-402, as
    amended, 22 U.S.C. 1431, et seq.
  • Fulbright-Hays The Mutual Educational and
    Cultural Exchange Act of 1961, P.L. 87-256, as
    amended, 22 U.S.C. 2451, et seq.

22
Other Laws Affecting Grants
  • Anti-Lobbying
  • Anti-Drug
  • Debarment and Suspension www.epls.gov
  • Anti-Deficiency Act
  • Federal Funding Accountability and Transparency
    Act of 2006

23
The Office of Management and Budget (OMB)
  • http//www.whitehouse.gov/omb/
  • OMB is tasked with assisting the President in
    overseeing the preparation of the federal budget
    and to supervise its administration in Executive
    Branch Agencies.
  • Prepares grants guidance known as the circulars.
  • Guidance being moved to 2 CFR
  • Agency implementing guidance will also be
    relocated to 2 CFR

24
CFR Sections Applying to DoS Grants
  • These sections of the CFR apply to Department of
    State grants
  • 22 CFR Chapter I, Part 135 Uniform
    Administrative Requirements for Grants and
    Cooperative Agreements to State and Local
    Governments
  • 22 CFR Chapter I, Part 137 Government-wide
    Debarment and Suspension (Nonprocurement) and
    Government-wide Requirements For Drug-free
    Workplace (Grants) www.epls.gov

25
CFR Sections Applying to DoS Grants
  • These sections of the CFR apply to Department of
    State grants
  • 22 CFR Chapter I, Part 138 New Restrictions on
    Lobbying
  • 22 CFR Chapter I, Part 145 Grants and
    Agreements with Institutions of Higher Education,
    Hospitals, and Other Non-profit Organizations

26
Catalog of Federal Domestic Assistance (CFDA)
  • The Catalog of Federal Domestic Assistance gives
    access to a database of all Federal programs
    available to
  • State and local governments (including the
    District of Columbia)
  • federally -recognized Indian tribal governments
  • territories (and possessions) of the United
    States
  • domestic public, quasi-public, and private profit
    and nonprofit organizations and institutions
  • specialized groups
  • and individuals.
  • www.cfda.gov

27
Other Guidance
  • GAO Principles Red Book Chapter 10
  • State Department Policy tab 4 for GPDS (Grant
    Policy Directives)

28
Linking Assistance Instruments to Planning
  • Each mission develops a Mission Strategic Plan
    (MSP) aimed at supporting certain performance
    goals of the Department of State. Within each
    plan are objectives supporting those goals. The
    role of grants is to ensure that they align with
    those objectives.

29
Linking Assistance Instruments to Planning
  • Good grants tie clearly and directly to an MSP
    goal. They require significant commitments by the
    host-country individuals and organizations
    involved.
  • Awards should be planned carefully, with outcomes
    that support Mission or Bureau goals and/or
    targets.

30
Module 2 Review Questions
  • What are the differences between an authorization
    and an appropriation?
  • What are State Departments primary Pubic
    Diplomacy authorizations?
  • How Does the Anti-Deficiency Act affect a Grants
    Officer?
  • How does OMB affect the grants making process?

31
Module 3
  • Selecting the Appropriate Instrument
  • 3.1 Distinguishing Procurement and Assistance
    Relationships
  • Two Critical Assessment Tests
  • 3.2 Types of Assistance Instruments
  • Definition of Substantial Involvement
  • Guidelines for the Use of Cooperative Agreements
  • Other Assistance Mechanisms

32
Distinguishing Procurement and Assistance
Relationships
  • Assistance
  • For a public purpose
  • Beneficiary-public
  • OMB and DOS 22 CFR
  • No profit
  • Recipient can terminate
  • Deliverable-report of project completion
  • Requires a warranted grants officer signature
  • Procurement
  • Buy goods services
  • Beneficiary-USG
  • FAR
  • May earn a profit
  • Contractor has no right to terminate
  • Deliverable-required product or service
  • Requires a warranted contracting officer signature

33
A Procurement Contract is
  • A legal instrument by which federal agencies
    obtain services or materials (including property)
    from the private sector for the benefit of the
    U.S. Government.
  • Example A contract between a U.S. embassy and a
    private firm to provide security for mission
    facilities (i.e. may require close supervision of
    the contractors performance).
  • Buying a computer for use by your bureau or post
    finance section.

34
Contracting Levels
  • Petty Cash up to 500
  • Micro-purchase up to 3,000
  • Simplified Acquisitions up to 100,000
  • Large Procurements over 100,000

35
Contracts to Support Grants
  • Personal Services Contracts
  • Personal Services Agreements
  • Non-Personal Services Support
  • Third Party Intermediary Contracts
  • Purchasing Property to Grant

36
A Grant is
  • An agreement in which the Federal Government
    provides funding or a thing of value to support a
    public purpose authorized by public statute. The
    government is not the recipient of the good or
    service and does not play a substantial role. The
    government is a patron.
  • Example A Department of State grant given by a
    public affairs section to enable a host-country
    institution to hold a conference on nuclear
    non-proliferation.

37
Different Lexicons
  • Contracting Terms contractors, bidders, bids,
    call for offers, contracting officer, scope of
    work, delivery date
  • Grants Terms recipient, applicant, proposal,
    solicitations, grants officer, scope of the
    project, project period

38
Types of Assistance
  • Grants (no USG involvement)
  • Property Grants
  • Grants to Individuals
  • Grants to Commercial Firms
  • Grants to Public International Orgs (PIOs)
  • http//www.opm.gov/employ/internat/list.asp
  • Voluntary Contributions
  • Cooperative Agreements (substantial USG
    involvement)

39
Substantial Involvement
  • Substantial involvement, associated with a
    cooperative agreement, is essentially the USG
    sharing participation and responsibility for the
    projects success. This can entail
  • collaboration,
  • consultation
  • and intervention
  • Cooperative Agreement must include
  • Conditions/provisions appropriate to the project
  • Explicit statement of the extent of the
    involvement
  • There is no specific definition or congressional
    guidance as to the meaning of substantial
    involvement in the Federal Grant and Cooperative
    Agreement Act of 1977

40
Substantial Involvement (cont.)
  • Generally involves, but is not limited to
  • Active participation, collaboration, intervention
    in the design or direction of the project
  • Review and approval of one phase of the project
    before another phase can begin
  • Planned and anticipated requirements for ongoing
    technical direction and involvement in the
    implementation of the project
  • Conducting a portion of the project with the
    recipient

41
Substantial Involvement (cont.)
  • Generally does not involve, but is not limited
    to
  • Approval of recipient plans or applications
    before award
  • Routine monitoring, review and response to
    performance progress and financial reports, site
    visits or occasional unanticipated assistance
    during the project
  • Normal due diligence responsibilities and budget
    review and analysis before issuing the award
  • Auditing to ensure that program goals and
    objectives, and terms and conditions are
    accomplished

42
Other Assistance Mechanisms
  • Representational Funds
  • K Fund
  • Invitational Travel
  • 632 (a)
  • 632 (b)
  • Economy Act
  • Gift

43
Common Myth
  • Grants are just gifts.
  • Or are they contracts?

44
Choosing the Right Instrument
  • Sometimes program officials want to issue a
    contract rather than a grant (assistance
    instrument) because they believe a contract gives
    them greater control over a project.
  • Select the instrument to achieve the appropriate
    level of control
  • Faced with the paperwork and competition
    requirements associated with procurement, program
    officials may try to use an assistance award
    (grant or cooperative agreement) rather than a
    contract
  • There are specific rules and legislative
    authorities that determine which instrument is
    appropriate.

45
Exercise
  • Refer to the student manual Module 3
  • In table groups, follow instructors directions
    and answer the questions in the manual on
    choosing the correct instrument.

46
Module 3 Review Questions
  • What are the two critical tests that must be
    assessed in deciding whether to use an assistance
    instrument (issue a grant) or a contract?
  • Explain the activities that would normally be
    considered substantial involvement in an
    assistance action.
  • Explain those activities that would NOT normally
    be considered substantial involvement in an
    assistance action.
  • Explain in general when cooperative agreements
    should and should not be used.
  • Explain what items must be included in all
    cooperative agreements.
  • Explain some of the main differences between
    Federal assistance actions and procurements
    actions.
  • Discuss two other potential tools that could be
    used.

47
Module 4
  • The Role of Federal Personnel
  • 4.1 The Role of Grants Officers
  • 4.2 The Role of Program Officers
  • 4.3 The Role of the Grants Officer Representative
  • 4.3.1 Responsibilities not Delegated

48
Mysteries, Myths and Misconceptions of Being a
Grants Officer
49
  • No one ever looks at these.

50
  • Washington approved the program so all is well.

51
  • Im just the conduit for the funds.

52
  • Its only 500.

53
  • The Ambassador said to do it.

54
  • How do I know if Im a grants officer?

55
  • But I had a warrant at my last post!

56
  • What reports?

57
  • Wine isnt really considered alcohol in this
    country.

58
  • It really wasnt entertainment because the
    event was boring.

59
  • Whats monitoring got to do with me?

60
Grants Officer Roles
  • The responsibilities of the grants officer
    include
  • performing budget analysis of the grant before
    award
  • monitoring the grants process to ensure
    compliance
  • assuring effective use of funds
  • receiving program and financial reports
  • issuing notices of grant awards and amendments
  • maintaining grant files and
  • coordinating all grant termination or suspension
    actions.

61
Exceptions to who can sign an award
  • Per GPD 8
  • At post, with Regional Bureau concurrence over
    10,000
  • Ambassadors Self Help Fund
  • Democratization Grants
  • Ambassadors Fund for Refugees
  • Ambassadors Fund for cultural Presentation
  • Ambassadors, Chief of Mission, direct hire
    American International Disaster Relief Chief of
    Mission
  • 632(a) or (b) Transfer Bureau Executive
    Director or Deputy Assistant Secretary

62
Grants Officer Authority
  • A grants officers warrant includes a dollar
    limit on the size of agreements the officer may
    enter into.
  • All assistance agreements over 10,000 must be
    approved by the regional bureau.

63
ATTRIBUTES OF A GOOD GRANTS OFFICER
  • Responsive
  • Creative
  • Knowledgeable
  • Good business sense
  • Integrity and Ethics
  • Organized
  • Documents well
  • Gets along with others
  • Sense of Humor
  • Not afraid to say NO
  • Good customer service

64
Program Officer Roles
  • Negotiate preliminary grantee budgets.
  • Coordinate with the Grantee on all technical
    matters which may arise in the administration of
    this grant.
  • Give technical clarification as to the meaning of
    the specifications including inspection, testing
    and acceptance procedures.

65
Program Officer Roles
  • Monitor and inspect the Grantee's progress and
    performance to assure compliance with the grant
    terms and conditions.
  • Receive deliverables (supplies, services, and/or
    reports) on behalf of the Government.
  • Verify satisfactory performance of grant
    activities and review progress reports and/or
    approve drawdown/reimbursement requests for
    payment.

66
Grants Officer Representative Roles (GOR)
  • A GOR typically
  • monitors the recipients performance,
  • reviews payment requests,
  • recommends grant amendments and
  • maintains a liaison between the recipient and
    grants officer.
  • A GORs appointment, made in writing, by the
    grants officer, is for a specific grant only.
  • GORs appointment is done with a letter samples
    on A/OPE/FA intranet site.

67
Responsibilities Not Delegated
  • The Grants Officer Representative (GOR) shall
    not Direct the Recipient to undertake ANY
    activity that will change the
  • Total award amount
  • Project purpose, description or content
  • Project period
  • Administrative terms or conditions of the award

68
EXERCISE
69
Break
  • When we return, we will cover the life cycle of
    an award

70
EXERCISE
71
Award Life Cycle
  • Check epls.gov
  • Issue solicitation
  • Negotiate and approve costs
  • Notification of unsuccessful applicants
  • Designation of a GOR
  • Technical and program review
  • Approve interim payments
  • Post Request for Proposals on Grants.gov
  • Obtain and review final reports
  • Issue amendments
  • Reconcile funds
  • Close obligation
  • Review interim reports
  • Conduct Site Visit
  • Prepare Notice of Award

72
GPDs - Module 4
  • GPD 28 Roles Responsibilities
  • GPD 26 Grants.gov
  • GPD 27 Methods of Competition

73
Module 4 Review Questions
  • Explain the role and authorities of the Grants
    Officer in a federal assistance action.
  • Summarize the role and responsibilities of the
    Grants Officer Representatives (GOR) in a federal
    assistance action.
  • What responsibilities may not be delegated to a
    Grants Officer Representative?
  • Explain the process for appointing a Grants
    Officer Representative.

74
REVIEW EXERCISE Modules 1-4
75
Review Questions Modules 1-4
  • Module 1
  • What Act made the distinction between contracts,
    grants cooperative agreements.
  • What are the two types of grant categories at the
    Department of State.
  • Module 2
  • Should domestic and overseas programs have a
    CFDA?
  • What chapter of the Code of Federal Regulations
    applies to DOS assistance awards.
  • Module 3
  • What does substantial involvement relate to?
  • What are the three types of assistance awards?
  • Module 4
  • Who is responsible for certifying funds?
  • Describe the 4 phases of the grants management
    life cycle.

76
Module 5
  • Requirements for Competition
  • 5.1 State Department Policy
  • 5.1.1 Competitive Procedures
  • 5.1.2 Justification for Non-Competitive
    Assistance Award
  • 5.2 Public Diplomacy Requirements if Using Other
    than Full and Open Competition

77
DoS Policy on Competition
  • It is DoS policy to encourage competition in the
    awarding of grants unless legislation or
    international agreements require otherwise.
  • Competition is also not mandated if
  • a recipient organization has particular expertise
    required or
  • if competition would increase costs.

78
Justification for a Non-Competitive Assistance
Award
  • To justify not competing an award, the grants
    officer must
  • document the history of past assistance awards
    under the program,
  • extent of prior competition,
  • likelihood of receiving competitive applications
    and why competition is not feasible.

79
Four Criteria for Exception to the Requirement
for Competition on Public Diplomacy
  • A grant is made under the authority of
    Fulbright-Hays
  • The terms of an international agreement or treaty
    between the United States and a foreign
    government or international organization have the
    effect of requiring the use of procedures other
    than competitive procedures
  • A recipient organization has developed particular
    expertise in the planning and administration of
    longstanding exchange programs important to
    United States foreign policy or
  • Introducing competition would increase costs.

80
Competitive Procedures
  • The following are effective strategies for
    encouraging competition
  • broadly advertising available grants in a variety
    of media, websites, Grants.gov
  • reaching out to promising organizations,
  • making several smaller grants rather than a
    single large one.

81
EXERCISE
82
Exercise Should they be competed, if so, how?
  • A public diplomacy grant for 10,000 to teach
    Albanian students about Black History in the U.S.
  • A public diplomacy grant for 15,000 to welcome
    three Fulbright scholars to the U.S.
  • A public diplomacy grant for 11,000 to continue
    the development of a training program for
    Macedonian teachers that was started by the
    University of Iowa.
  • A 25,000 grant to demonstrate utility of the
    Americans with Disabilities Act (ADA) in Colombia

83
Request for Grant Proposals (RFGP)
  • A written request for applications must include
  • a program description,
  • eligibility requirements,
  • application procedures and due dates,
  • selection process,
  • funding requirements and any matching funding
    needed,
  • reporting requirements,
  • OMB provisions,
  • and anticipated processing time.

84
EXERCISE
85
Exercise - RFGP
  • Turn to sample RFGP in student manual
  • Develop an outline of an RFGP what would be the
    key elements?

86
Module 5 Review Questions
  • Explain Department policy for competition of non
    Public Diplomacy assistance actions.
  • Explain some possible ways to encourage
    competition for federal assistance awards.
  • What are the exceptions to competing funding
    opportunities on Grants.gov?
  • When are written justifications for
    non-competition of federal assistance awards
    necessary, and what should they contain?
  • Explain the competition requirements for Public
    Diplomacy assistance actions.

87
Module 6
  • The Application and Review Process
  • 6.1 Grant Proposal Review
  • 6.2 Pre-Award Responsibility Determination
  • 6.3 Pre-Award Survey
  • 6.4 High Risk Recipients
  • 6.5 Budget Evaluation and Review

88
Grant Proposal Contents
  • A grant proposal must include
  • A SF-424 cover sheet Application for Federal
    Assistance
  • a project narrative
  • the need for assistance
  • an outline of the problem
  • anticipated results of the project
  • details on the organization
  • summary and/or detailed budget
  • cvs or resumes of key personnel
  • Additional requirements per Bureau Proposal
    Submission Instructions (PSI)

89
Grant Proposal Review
  • Three primary criteria Cost, Past Performance,
    Capacity
  • Additional criteria for evaluating a grant
    proposal
  • determine if the proposed project addresses an
    MSP/OP goal
  • targets the right audience
  • is non-political or equally supportive of all
    parties
  • has a reasonable budget with cost-sharing if
    appropriate
  • and is sustainable
  • The grants officer must also review all potential
    materials to ensure they support the project as
    proposed.

90
EVALUATING PROPOSALS Best Practices
  • Democracy Commission Grants
  • Public Diplomacy Grants
  • Fulbright-Hays Grants
  • Population and Refugee Migration Grants
  • Others

91
Pre-Award Responsibility
  • The grants officer is charged with conducting a
    pre-award survey to include
  • ensuring that the prospective recipient is
    eligible to receive a grant,
  • has appropriate resources to meet project
    requirements and
  • has a satisfactory record of performance and
    integrity.

92
Points To Review
  • Technical
  • Ability to perform
  • Org structure
  • Key personnel
  • Expertise in the area
  • Equipment, facilities
  • Other commitments
  • Ability to staff
  • Registered, if required
  • Licensed, if required
  • Financial
  • Bank accounts
  • Ability to get credit
  • Security
  • Check epls.gov
  • Past Performance
  • Experience with this grantee?
  • Experience in the area
  • Do your FSNs know them?

93
Pre-Award Survey
  • A pre-award survey is required for new
    recipients and if there is any question of the
    recipients capability to perform including the
    following
  • The Grants Officer or Program Officer is
    uncertain about the prospective recipients
    capacity to perform financially or technically.
  • The prospective recipient has never had a
    Department of State grant.
  • The Grants Officer otherwise determines it to be
    in the best interest of the Government.

94
Additional Vetting
  • Terrorism
  • Anti-prostitution

95
High Risk Recipients
  • A recipient that the grants officer has doubts
    regarding their ability to complete the project.
  • For high-risk recipients, the grants officer may
    choose to
  • attach conditions to the grant,
  • allow for technical assistance,
  • or reduce the amount of the award.

96
Budget Evaluation - Costs
  • Cost Principles OMB Circular A-122 (for DoS
    22CFR Part 145)
  • Allowable
  • Reasonable
  • Allocable
  • Direct vs. Indirect costs

97
Budget Evaluation - Guidelines
  • Necessary or Integral?
  • Consistent with Program Announcement?
  • Detailed or Vague?
  • Compliance with Regulations?
  • Cost Sharing?

98
Cost Sharing
  • The principle of cost sharing is an important
    element in supporting many programs, however,
    unless cost sharing has been specifically
    required.
  • Some Department of State programs require a
    specified amount or percentage of cost sharing to
    be provided by the recipient.
  • Cost sharing amount proposed by recipient
    organizations are approved and incorporated as
    part of the allowable budget items.

99
Program Income
  • Definition gross income earned by the recipient
    that is directly generated by a supported
    activity or earned as a result of the award.
  • Retained by recipient BUT used
  • Additive to federal funds
  • Deducted from federal funds
  • Finance non-federal share of program

100
Pre-Award Costs
  • At Your Own Risk!!!
  • Grants Officer can authorize for 90 days prior to
    Notice of Award
  • Must be necessary for conduct of project
  • Not a method to ratify unauthorized commitments!

101
EXERCISE
102
Module 6 Review Questions
  • List what types of information should be
    contained in a grant proposal.
  • List some major questions that should be
    considered when evaluating a grant proposal.
  • What is a pre-award responsibility determination?
  • What conditions would make a pre-award survey
    necessary, and what should the survey consider?
  • Define a high risk recipient and explain what
    might be done to minimize risk when making an
    award to such a recipient.
  • Define allocable, allowable, and reasonable costs.

103
Module 7
  • Negotiation and Award
  • 7.1 Relating Funding Level to Grant Activities
  • 7.2 Establishing the Period of Performance
  • 7.3 Terms and Conditions
  • 7.4 Reporting Requirements
  • 7.4.1 Financial Reports
  • 7.4.2 Program Reports

104
Prior to Negotiation and Award
  • Verify that funds are available
  • Proposal or Request from Applicant
  • Budget
  • Decision or Action Memo, if applicable
  • Any additional required certifications and
    assurances, if applicable

105
Negotiating and Awarding
  • In negotiating and awarding the grant, the grants
    officer is responsible for assuring that
  • All elements of a legally binding instrument are
    met
  •  Competent parties
  •  Proper subject matter
  •  Sufficient consideration

106
Meeting of the minds
  • When two parties negotiate an assistance award
    both have the same understanding of the terms of
    the agreement. This mutual comprehension is
    essential to a valid assistance award. All
    elements of the award clearly and coherently
    express the specific understandings of both
    parties
  •  Purpose
  •  Program description
  •  Award Project Period
  •  Allowable line items
  •  Award amount
  • Reporting Requirements

107
Establishing the Award Project Period
  • Effective date is the date specified in the award
    that reflects the project start and end dates for
    which expenditures may be charged to the award.
  • Expiration date (date of completion) is the date
    specified in the notice of award that reflects
    the Project Start and end dates for which
    expenditures may be charged to the award.
  • The award project period is the between the
    effective date and the expiration date.

108
Relating Funding Level to Grant Activities
  • Prior to finalizing the award the Grants Officer
    must ensure that adequate funds are provided to
    carry out the scope of the grant.
  • It should not be assumed that additional grant
    funds would be available.

109
Unallowable costs
  • Alcoholic beverages
  • Donations and Contributions
  • Fines and Penalties
  • Bad debts
  • Entertainment

110
EXERCISE OMB A-122
111
FLY AMERICA ACT
  • What does OMB say about travel?
  • Do grantees have any flexibility? No.
  • Do State personnel have any flexibility?
  • Exceptions to Fly America
  • Any experiences to share?
  • Are grantees entitled to business class?
  • What does OMB say about commercial air travel?

112
Reporting Requirements
  • Grantees MUST submit financial and program
    reports. There are several important reasons for
    requesting reports
  • Common sense dictates receiving reports
  • Regulations require them
  • The Grants Officers reputation and career may
    very well depend on effective grants management

113
Reporting RequirementsContinued
  • If grantees have not submitted program reports
    you are obligated to try and collect them. You
    must notify the grantee three times in writing
    that the reports are overdue
  • The first request is a gentle reminder
  • The second request is a bit more direct
  • The third notifies the grantee that they are in
    violation of the terms of the agreement, and may
    not be eligible for future grant awards.

114
Financial Reports
  • ALL of your grantees MUST submit financial
    reports.
  • Financial reports should be submitted quarterly.
  • Final report needed for closeout.

115
Program Reports
  • A program report should include
  • A description of how the goals of the grant were
    met
  • What problems were encountered and how they were
    resolved
  • The likely future impact
  • What new contacts were made
  • What new plans or projects were conceived
  • What issues were discussed and the participants

116
Notice of Award Components
  • To comply with government-wide streamlining
    efforts of the Office of Management and Budget
    (OMB), the Departments federal assistance terms
    and conditions for both domestic and overseas
    awards, as well as the award package/format have
    been standardized.
  • The Notice of Award consists of
  • DS-1909, Award Coversheet
  • Award Specifics
  • Bureau/Program/Post Specific Requirements (if
    applicable)
  • Standard Terms and Conditions for either Domestic
    or Overseas Awards

117
Module 7 Review Questions
  • List the elements for a legally binding grant
    agreement that must be considered and included
    when negotiating an agreement.
  • Define the term period of performance and
    explain how extensions requests are to be made.
  • List the two types of reports that all recipients
    must provide, and explain why they are important.
  • Explain the requirements for travel by grantees
    on US Flag Air Carriers.

118
Module 8
  • Administration of Agreements
  • 8.1 Budget Revisions
  • 8.2 Program Changes
  • 8.3 Equipment Purchases and Title to Property
  • 8.4 Disposal of Property by Grant (Donation)
  • 8.5 No Cost Extensions
  • 8.6 Request for Additional Funds
  • 8.7 Recipient Accountability
  • 8.8 Payment Procedures
  • 8.9 Official Grant Files

119
Budget Revisions
  • The grants officer determines the approval
    required for budget revisions
  • whether to use the 10 standard for budget
    variations or
  • require prior approval for all variations.

120
Program Changes
  • Changing political or economic situations in a
    foreign country may create a need to deviate or
    change from your original grant.
  • It is the Grants Officers responsibility to
    ensure that any necessary amendments to permit
    any change to the program is issued in a timely
    fashion.

121
Equipment Purchases and Title to Property
  • Equipment for your non-U.S. grantees.
  • Loan them the equipment
  • Require the recipient to rent the property is
    cost effective
  • Permanently donate the equipment
  • The preferred method is to give the recipient a
    cash grant to buy the equipment/property
  • Things to keep in mind
  • Grantee may have to pay a value added tax (VAT)
  • Grantee must adhere to USG procurement rules

122
No Cost Amendments
  • Possible reasons to grant a No Cost extension
  • More time
  • Program changes
  • Reallocation of funds
  • Changes in line items by more than 10

123
Requests for Additional Funds
  • Require a written justification prior to
    expenditure.
  • Must be specific and indicate which line items
    are being increased.
  • If appropriate indicate additional or new line
    items.

124
Recipient Accountability
  • Recipient must comply with any conditions imposed
    upon the award by the government and
  • By accepting these funds, this constitutes the
    recipients consent to fulfill the requirements
    of the award.

125
Monitoring
  • Strategies for monitoring grant agreements
    include
  • Dividing the project into phases
  • Conduct site visits
  • Asking to see the recipients
  • Records (accounting)
  • Property
  • Staff

126
Payment Procedures
  • Recipients are typically paid in advance if they
    meet specific financial management criteria.
    (Reference in Terms and Conditions OMB Circular
    A-110, 215.20). For recipients that do not meet
    these standards or are high-risk the following
    may be used
  • Advances
  • working capital advances
  • Pay on reimbursable basis
  • Partial payments should be limited to minimum
    amounts needed

127
Official Grant Files
  • Official grant files must be maintained in
    accordance with GPD 23 using the Federal
    Assistance File form DS-4012.
  • DS-4012 includes a checklist of things that
    should be in a complete grant file.
  • The folder can be ordered from RSC Manila
  • The file can be downloaded from the A/OPE/FA
    website or e-forms

128
Official Grant Files Should Contain
  • Certification of funds and authority
  • Pre-solicitation clearances
  • Successful applicants proposal
  • Evaluation documentation
  • Pre-award survey/documentation
  • Negotiation record
  • Award correspondence
  • Award

129
Official Grant Files Continued
  • Amendment documentation
  • Payment documentation
  • Program, financial and property reports
  • Grants Officer Representative letter
  • Any other necessary correspondences
  • Closeout documentation

130
Module 8 Review Questions
  • Explain the provisions of the standard clause for
    budget revisions in grant agreements.
  • Explain the options available for disposition of
    equipment used by grantees for a particular
    grant.
  • Define a no-cost amendment and explain the
    procedure for making one.
  • Define a cost amendment and explain the procedure
    for making one.
  • How frequently should reimbursement payments be
    made?
  • Name the main items that should be included in an
    official grant file.

131
Review Questions Modules 5-8
  • Describe the steps a Grants Officer needs to
    justify not competing an award?
  • List contents of a grant proposal.
  • What are the elements of a legally binding
    instrument?
  • Who should amend a grant award?
  • List elements needed in a Request for Grant
    Proposals.
  • List the components of a Notice of Award.

132
Module 9
  • Extraordinary Grant Problems
  • 9.1 Suspension of Payments
  • 9.2 Termination
  • 9.3 Audit
  • 9.4 Unauthorized Commitments

133
Suspension of Payments
  • The grants officer may suspend payments on an
    award only if
  • the recipient fails to comply with the project
    requirements
  • the recipient fails to comply with the reporting
    requirements and/or terms and conditions
  • or the recipient or sub-recipient is delinquent
    in a debt to the U.S.G.
  • Reasonable notice of suspension is required

134
Termination
  • The grant can be terminated by either party.
  • The grants officer may terminate it if the
    recipient materially fails to comply with the
    terms.
  • A portion of the grant may be terminated.

135
Required Audits
  • Non-Federal entities that expend less than
    500,000 (total) a year in Federal awards are
    exempt from Federal audit requirements for that
    year, but records must be available for review or
    audit.
  • Non-U.S. based entities are not subject to
    Federal audit requirements.

136
Unauthorized Commitments
  • A GOR or grants officer who makes an unauthorized
    commitment may be held personally liable for the
    costs.
  • The Procurement Executive may ratify an
    unauthorized commitment based on a report
    including
  • Description and explanation of unauthorized
    action
  • Beneficial results of that action
  • Justification for approval
  • Signature of individual, supervisor and assigned
    grants officer

137
Module 9 Review Questions
  • Under what circumstances may the Department
    withhold payments to grantees?
  • Define termination of a grant agreement, and
    explain when this can be done by the department,
    and by the grantee.
  • Define an unauthorized commitment, and explain
    how one might occur.
  • Explain the procedure for requesting approval of
    an unauthorized commitment.

138
Module 10
  • The Closeout Process
  • 10.1 Submission of Reports
  • 10.2 Disposition of Property
  • 10.3 Settlement of Accounts
  • 10.4 Retention of Records

139
Submission of Reports
  • A final report is required within the time frame
    stipulated in the grant agreement (usually 90
    days after the end of the period of performance).
  • In addition to a narrative on program
    accomplishments, the report should include a
    financial accounting of all expenditures, any
    unexpended funds and the disposition of any
    equipment provided or acquired with grant funds.

140
Disposition of Property
  • Equipment with a value of less than 5000 may be
    retained, sold or otherwise disposed of with no
    further obligation to the awarding agency.
  • For equipment over 5000 recipients must request
    disposition instructions from the Department.

141
Settlement of Accounts
  • If the recipient has unexpended funds after the
    project has been completed, the funds MUST be
    returned to the department and de-obligated.
  • In addition, any grant funds that were paid to
    the recipient that exceed the amount the
    recipient is entitled to must be refunded to the
    Department.
  • There is NO MINIMUM amount that can be forgiven.
    Example If a grantee owes 3 the Grants Officer
    is obligated to attempt to recover these funds.

142
Retention of Records
  • Financial records, supporting documents,
    statistical records, and all other records
    pertinent to an award shall be retained for a
    period of three years.
  • The only exceptions are the following
  • If any litigation, claim, or audit is started
    before the expiration of the 3-year period, the
    records shall be retained until all litigation
    claims or audit findings involving the records
    have been resolved and final action taken.
  • Records for real property and equipment acquired
    with Federal funds shall be retained for 3 years
    after final disposition.
  • When records are transferred to or maintained by
    the Department, the 3-year retention requirement
    is not applicable to the recipient.

143
Module 10 Review Questions
  • When should an assistance agreement be closed
    out, and what does this entail?
  • When are all the reports due from the grantee?
  • Briefly explain the provisions governing the
    disposition of property and equipment.
  • What must the recipient do with the unexpended
    funds at the end of a grant period?
  • What records must be retained in an official
    grant file after the agreement has ended, and for
    how long?

144
Module 11
  • Conflicts of Interest and Other Improprieties
  • 11.1 Current Environment
  • 11.2 Bribery
  • 11.3 Illegal Compensation
  • 11.4 Ethical Conduct

145
ETHICS FOR GRANT ADMINISTRATORS
  • Wardens of public trust
  • Adhere to two core concepts
  • Not use office for private gain
  • Act impartially not give preferential treatment

146
Current Environment
  • Government employees continue to be under intense
    scrutiny regarding improper behavior, which can
    often damage a career.
  • Interacting with the private sector may sometimes
    cause situations, which may or may not be
    conflicts of interest.
  • You are reminded to seek advice from the Office
    of the Legal Advisor for questions relating to
    ethics.

147
Bribery
  • The Bribery Statute, 18 U.S.C. 201, provides a
    fine of not more than 20,000 or three times the
    monetary value of the gift, whichever is the
    greater, or imprisonment for not more than 15
    years, or both, for bribing or attempting to
    bribe a federal official or for accepting or
    agreeing to accept such a bribe.

148
Illegal Compensation
  • There are specific prohibitions related to
    employees receiving gifts from those who have
    business with the embassy or the U.S. Government
    (see 3 FAM 4120).
  • 18 U.S.C. 203 provides a fine of not more than
    10,000 or imprisonment for not more than two
    years, or both, for receiving, asking, demanding,
    soliciting or seeking any compensation or for
    knowingly giving, promising, or offering
    compensation for any service rendered by a
    federal official in relation to a variety of
    actions.

149
Ethical Conduct
  • The Standards of Ethical Conduct for Employees of
    the Executive Branch (5 CFR 2635) outlines the
    basic requirements for ethical behavior expected
    of employees.
  • A U.S. Government employee is restricted from
    discussing opportunities for the employees
    future employment with the grantee organization
    (see 18 U.S.C. Sec 208

150
AN EXAMPLE Legal or Not?
  • You are a Board Member of an NGO that may receive
    a grant from you.
  • You use your government computer and telephone to
    perform your Board Member responsibilities.
  • You provide advanced information on upcoming
    grants to your NGO.
  • Your name and USG title is listed on the
    organizations letterhead
  • REMEMBER Cannot use government employment for a
    purpose that gives the appearance of using the
    office for private gain by anyone, or giving
    preferential treatment.

151
EXERCISE Ethical Dilemmas
152
Module 11 Review Questions
  • What laws and regulations deal with the ethical
    conduct of Federal employees.
  • Summarize the prohibitions against bribery and
    illegal compensation for Federal employees.
  • Explain the limitations on receiving gifts from
    outside sources from Standards for Ethical
    Conduct for Employees of the Executive Branch.

153
LAST CHANCE
154
EXAM
155
  • RELAX
  • FOCUS
  • RELAX
  • DONT OBSESS
  • RELAX
  • THINK
  • RELAX
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