Extramural Agreements Training for ERS Authorized Departmental Officers Designated Representatives

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Extramural Agreements Training for ERS
Authorized Departmental Officers Designated
Representatives

• July 8, 2008

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Learning Objectives

• To describe the key elements of the ERS
  administrative structure as it pertains to
  Extramural Agreements
• To describe the types of applicable agreements
• To explain the roles and responsibilities and the
  relationship between the Authorized Departmental
  Officer (ADO), Authorized Departmental Officers
  Designated Representative (ADODR), Administrative
  and Financial Services (AFS), Budget Office, and
  Administrative and Financial Management (AFM),
  Extramural Agreements Division (EAD) during the
  award process
• To describe the extramural agreements process

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Delegation of Authority
Secretary of Agriculture
Under Secretary for REE
Administrator, ERS
ADO
ADODR
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Administrative Structure
ERS Administrator
EAD
AFS
Division Director
ADODR
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Order of PrecedenceRelevant Laws, Regulations,
and Policies

• Statutes
• Program Regulations
• Administrative Regulations
• OMB Circulars and other Directives
• Agency Policy
• PPs
• Bulletins

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Statutes Related to ERS

• Federal Grants and Cooperative Agreements Act of
  1977 (31 U.S.C. 6301-6303)
• Food Security Act of 1985
• (7 U.S.C. 3318(b) 3319(a))

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Policies
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Mutual Resource Contribution

• The Cooperators contribution must be maintained
  at 20 percent of the Federal funding level
  throughout the life of the cooperative agreement.
  
• The Cooperators resource contributions must
  consist of a sufficient amount of itemized direct
  costs.
• Examples money, space, equipment, materials and
  supplies, personnel services.

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Obligation and Expenditure of Funds

• Funds may not be used for obligations or
  expenditures made prior to the start date of the
  agreement.
• A formal written request must be submitted to ERS
  to authorize pre-award costs.
• A copy of the pre-award cost letter and approval
  or disapproval must be included in the official
  file.

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Indirect Cost Negotiation

• If the Cooperator is not a State Cooperative
  Institution, AFS must negotiate the indirect cost
  rate.
• For non-profit organizations, the rate cannot
  exceed 10 percent.
• The rate for profit organizations cannot exceed
  the audited rate of any federally recognized
  agency or as approved by AFS.

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Indirect Costs and Tuition Remission
Type of Agreement Type of Agreement Type of Agreement
Type of Performing Organization Cooperative Research Agreement Grant Agreements Cost Reimbursable Agreements
State Cooperative Institutions Indirect Costs/Tuition Remission are PROHIBITED Negotiated Indirect Cost Rate NOT to exceed the audited rate of any recognized audit agency. Tuition Remission is allowable Negotiated Indirect Cost rate not to exceed 10 percent of total direct costs. Tuition Remission is allowable
Non-Profit Organizations Negotiated Indirect Cost rate not to exceed 10 percent of total direct costs. Tuition Remission is allowable Negotiated Indirect Cost Rate NOT to exceed the audited rate of any recognized audit agency. Tuition Remission is allowable
Other Organizations Negotiated Indirect Cost Rate NOT to exceed the audited rate of any recognized audit agency. Tuition Remission is allowable Negotiated Indirect Cost Rate NOT to exceed the audited rate of any recognized audit agency. Tuition Remission is allowable
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Types of Agreements
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Important questions to ask when determining the
correct instrument

• What is the principal purpose of the agreement?
• What is the nature of ERS anticipated
  involvement?
• What benefit will ERS derive from the agreement?
• What is the anticipated relationship between ERS
  and the cooperator/recipient?
• Will either party contribute funds, and if so,
  who will provide them?

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Types of Agreements

• Grant
• Assistance Type Cooperative Agreement (ATCA)
• Cooperative Research Agreement
• Cost Reimbursable Agreement
• Interagency Agreement

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Types of Agreements

• ERS uses a Grant to transfer a thing of value,
  usually money, to the recipient (usually a
  non-Federal entity) to stimulate or carry out a
  public purpose.
• No substantial involvement between ERS and the
  recipient during the performance of the project.

• Grant
• Assistance Type Cooperative Agreement (ATCA)
• Cooperative Research Agreement
• Cost Reimbursable Agreement
• Interagency Agreement

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Types of Agreements

• Grant
• Assistance Type Cooperative Agreement (ATCA)
• Cooperative Research Agreement
• Cost Reimbursable Agreement
• Interagency Agreement

• ERS uses a ATCA to
• transfer a thing of value,
• usually money, to the recipient to stimulate or
  carry out a public purpose.
• ERS is substantially
• involved with the recipient during the
  performance of the project.

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Types of Agreements
An agreement between ERS and another party or
parties that describes in detail a jointly
planned and executed research program or project
of mutual interest. Both parties contribute
financial resources, participate in the
cooperative work to be accomplished and benefit
from the outcome of the project.

• Grant
• Assistance Type Cooperative Agreement (ATCA)
• Cooperative Research Agreement
• Cost Reimbursable Agreement
• Interagency Agreement

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Types of Agreements

• Grant
• Assistance Type Cooperative Agreement (ATCA)
• Cooperative Research Agreement
• Cost Reimbursable Agreement
• Interagency Agreement

ERS uses the Cost Reimbursable Agreement to
acquire goods and personal services on a
non-competitive basis, from any State Cooperative
Institution, college or university. Supports
activities of mutual interest.
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Types of Agreements
An agreement between Federal agencies whereby the
Requesting Agency obtains services or research
from the Performing Agency.  The services or
research requested must support the mission of
the Requestor, and be within and enhance the
mission of the Performing Agency.  The
Requesting Agency will reimburse the Performing
Agency for costs of the service/research.

• Grant
• Assistance Type Cooperative Agreement (ATCA)
• Cooperative Research Agreement
• Cost Reimbursable Agreement
• Interagency Agreement

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Exercise 1

• Selecting the Appropriate Funding Arrangement
• Match each agreement type with the appropriate
  definition.

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Roles and Responsibilities
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The Primary Players
Authorized Departmental Officer
Extramural Agreements Division, ARS
Official delegated signature authority to
commit authorized funding
Develops policy and provides guidance to ERS as
it pertains to extramural agreements
Administrative and Financial Services
Authorized Departmental Officers Designated Repr
esentative
Provides administrative assistance to the ADODR
Budget Office
Provides advice, guidance, and service on
all financial matters
The technical representative who oversees the
specific work to be performed
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Authorized Departmental Officer

• Review and approve or disapprove proposed
  agreements submitted by the ADODR.
• Delegate authority to an ADODR and ensures the
  ADODR performs the duties within their
  delegation.
• The Division Director serves as the ADO on all
  agreements under 100,000.
• The Administrator, ERS, serves as the ADO on
  agreements 100,000 or more.

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Authorized Departmental Officer

• The ADO is the only person that can obligate
  funds or commit Agency resources with regard to
  extramural agreements.

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Administrative and Financial Services

• Responsible for
• Award, Administration, and Closeout of the
  Agreement
• Maintains the official agreement file
• AFS will take all authorized actions
• necessary to protect and advance the
• interest of ERS as it pertains to
• extramural agreements.

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Administrative and Financial Services

• Ensure that the ADODR performs the administrative
  duties within the scope of their delegation.
• Ensure that ERS has the program authority to
  enter into the agreement.
• With the assistance of the ADODR, determine the
  appropriate instrument.
• Assist the ADODR in developing the SOW and budget.

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Administrative and Financial Services

• Prepare the AD-700 and the REE-451.
• Ensure that the cooperator does not perform work
  prior to the agreement being fully executed,
  unless pre-award costs are authorized.
• Negotiate all final terms and conditions .
• Ensure that the agreement is in compliance with
  all applicable Federal laws and regulations.

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Administrative and Financial Services

• Ensure that all parties receive the necessary
  documents prior to approval.
• Ensure that the terms of the agreement are
  current, and that the agreement is revised,
  continued, suspended, or terminated as
  appropriate.
• Review the Cooperators inventory records of
  property purchased fully or in part with ERS
  funds, as applicable.
• Initiate and complete agreement closeout.
• Ensure that the ADODR has a proper delegation
  certificate.

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ADODR

• The ADODR is an integral part of the extramural
  agreements process and is responsible for working
  with the Cooperator to
• Direct technical performance
• Provide oversight of the project
• Ensure fiscal accountability of the project

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ADODR

• Discuss projects with the Division Director and
  Cooperator.
• Develop an accurate budget
• Develop detailed statement of work (SOW), work
  plan, or proposal.
• Submit draft SOW with budget form (REE-454 or
  REE-455) to AFS.
• Review, approve or disapprove, and forward
  invoices (or Form SF-270) for payment to AFS.
• Monitor work progress, review, and approve
  progress reports and financial status reports.

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ADODR

• Performance reports are reviewed to determine the
  level of program accomplishments and to resolve
  any discrepancies in program performance.
• ADODRs shall document all accomplishments,
  discrepancies, and efforts made to reconcile
  differences.
• These reports are the basis for approval or
  disapproval of payment requests.

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Budget Office

• Provide advice, guidance, and service on all
  financial matters.
• Obligate funds through the M1 document in FFIS
  based on the SOW and AD-700.

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Extramural Agreements Division - AFM

• Formulate, develop, and implement Agency policy.
• Provide guidance to ERS as it relates to
  extramural agreements.
• Review and approve ERS cooperative agreements
  prior to signature.
• Enter the Payment Vouchers (PV Document) in FFIS.
• Enter deobligation documents in FFIS for closeout
  of completed/expired agreements.

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Exercise 2

• Duties of the Primary Players
• ADO, ADODR, and AFS
• The scenarios describe the duties of the ADO,
  ADODR, and AFS. Indicate which primary player
  has the responsibility for carrying out the duty
  in each. If the duty falls to the ADODR,
  indicate whether AFS should assist them in
  carrying it out.

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The Extramural Agreements Process
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The Complete Process (as is)
ADODR
Statement Of Work (SOW) Budget
Division Director for Signature
AFS
AD-700
AFS
Development of the 451 and the
Agreement package
Cooperator for Signature
AFM/EAD
AFS
Budget Office develops M1
AFM/EAD
Division Director for FINAL Signature
Complete Agreement Package
AFS
AFS
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ADODR

• Develops
• Statement of Work
• Consisting of Objective, Approach, Statement of
  Mutual Interest, Cooperator Agrees to, ERS Agrees
  to, and Mutual Agreements.
• Budget Form (REE-454 and REE-455)
• Submits all documents to AFS.

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ADODR
AFS

• Develops AD-700
• Submits SOW, Budget Form, and AD-700 to Division
  Director for review and signature.
• Ensures that the ADODR has a proper delegation
  certificate.

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ADODR
AFS
Division Director

• Signs AD-700 authorizing the commitment of
  funds.
• Returns the signed package (SOW, Budget Form, and
  AD-700) to AFS.

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ADODR
AFS
DD
AFS
Budget

• Develops M1 document which obligates the funds in
  FFIS.

• Forwards SOW, Budget Form, and AD-700 to Budget.

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ADODR
AFS
DD
AFS
Budget
AFS

• Completes the REE-451
• Compiles the agreement package including
• SOW, Budget Form, AD-700, M1 Document,
• REE-451
• Forwards to EAD

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ADODR
AFS
DD
AFS
Budget
AFS
EAD

• Reviews entire agreement package.
• Forwards to Cooperator for signature.

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ADODR
AFS
DD
AFS
Budget
AFS
EAD
Cooperator
EAD

• Reviews signed agreement package makes necessary
  changes
• Forwards agreement package to AFS

• Reviews agreement package
• Signs agreement package
• Returns signed agreement package to AFM/EAD

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ADODR
AFS
DD
AFS
Budget
AFS
EAD
Cooperator
EAD
AFS

• Submits agreement package to Division Director
  for final signature.

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ADODR
AFS
DD
AFS
Budget
AFS
EAD
Cooperator
EAD
AFS
Division Director

• Signs agreement package
• The Division Director signs all agreements under
  100,000.
• The Administrator, ERS, sign agreements 100,000
  or more.
• Returns agreement package to AFS.

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ADODR
AFS
DD
AFS
Budget
AFS
EAD
Cooperator
EAD
AFS
DD
AFS

• Prepares agreement package for distribution
• Cooperator - EAD
• ADODR - Official File
• Budget

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Completed Agreement Package

• REE-451 Cooperative Research Agreement
• SOW
• Administrative Policy for non-Assistance
  Cooperative Agreements
• REE-454 Cooperative Agreement Budget
• AD-700
• M1 Document

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Exercise 3

• Identifying the Steps in the Awards Process
• Please select the appropriate response for each
  question.

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Amendments

• An amendment is required each time an agreement
  requires a change.

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Amendment Process

• Most amendments go through the same process as
  new agreements.
• If there is no change in the money allocated to
  the award, the Budget Office is not involved in
  the process.

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Regular Amendments(Requires both ERS and
Cooperators signatures)

• Addition of Money or Change in Scope
• What is needed
• Revised SOW/Proposal explaining the need for the
  change and the amount of both parties
  contributions.
• Form REE-454/455 showing a revised budget.
• Form AD-700 to commit additional funds.
• Form REE-451 with changes noted

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Regular Amendments (Requires both ERS and
Cooperators signatures)

• Change in Principal Investigator
• What is needed
• Form REE-451 with changes noted

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Administrative Amendments(Requires ERS
signature only)

• Change in Accounting code, address, bank
  information, ADODR or an extension of time
• Extension of time
• What is needed
• Form REE-451 with changes noted
• Apply letter from Cooperator explaining the need
  for the extension and attach it to the REE-451 as
  backup.

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Exercise 4

• Identifying Amendment Requirements
• Part I, Identification Read the following
  scenarios and indicate, (1) whether an amendment
  to the agreement is needed, and (2) the reason
  for your answer.
• Part II, Documentation For the scenarios where
  a regular amendment is necessary, list the
  appropriate documentation and additional
  information to be submitted.

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The Payment Process
Cooperator

• Submits invoices and performance reports to AFS.

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Cooperator
AFS

• Reviews the invoice for accuracy and reconciles
  any differences with the Cooperator prior to
  sending it to the ADODR.
• Ensures all reporting requirements have been met
  by the Cooperator.
• Financial Status Report
• Performance Report
• Obtains missing reports prior to forwarding
  payment request to the ADODR.
• Ensures accurate accounting information.
• Forwards the invoice (with a cover letter) to the
  ADODR for review and approval/disapproval.

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Cooperator
AFS
ADODR

• Reviews the invoice package and the Performance
  Report for approval or disapproval.
• If approved, the payment request is forwarded to
  AFS.
• If disapproved, the payment request is forwarded
  to AFS for follow-up action.
• Performance Reports are required. No reports
  means no payment.

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Cooperator
AFS
ADODR
EAD
Yes
Approved by ADODR?
AFS Contacts the cooperator for additional
information
AFS
No

• Once the payment documentation (invoice and
  performance report) is approved, AFS forwards the
  package to EAD for processing.

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Cooperator
AFS
ADODR
AFS
EAD

• Inputs the payment voucher into FFIS.
• Sends an e-mail with list of payment voucher(s)
  to AFS.

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Cooperator
AFS
ADODR
AFS
EAD
AFS

• Approves the payment vouchers in FFIS.
• Payment is completed!

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Closeout

• AFS notifies the ADODR that the agreement is due
  to expire within 90 days of expiration.
• The ADODR then determines to either
• Amend the agreement for additional needs or
• Terminate and deobligate any account balances
  that will not be used

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Closeout

• The ADODR and AFS are responsible for acquiring
  the following
• Cooperators final billing and final financial
  status report (REE-269)
• Cooperators final performance report

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CloseoutInvention disclosure and utilization
reporting

• The Cooperator shall report Invention Disclosures
  and Utilization information electronically via
  i-Edison Web Interface at www.iedison.gov.
• If access to InterAgency Edison is unavailable,
  the invention disclosure should be sent directly
  to
• Division of Extramural Inventions and
  Technology Resources
• 6705 Rockledge Dr. (RKL 1)
• Suite 310, MSC 7980
• Bethesda, MD 20892

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Resources

• Desk Reference for Grants and Cooperative
  Agreements
• PP 702.0 Selection, Appointment, and
  Responsibilities of the Authorized Departmental
  Officers Designated Representative (ADODR)
• Brochure - Grants and Cooperative Agreements with
  the Economic Research Service Guidelines for
  External Organizations
• http//www.afm.ars.usda.gov/agreements/index.htm

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Thank you!

• Questions ?????
• Contact Information
• ERS AFS 202-694-5410
• AFM EAD 301-504-4411 or 301-504-1147