OMB CIRCULAR

1

• OMB CIRCULAR
• A-110 FOR DEPARTMENTAL ADMINISTRATORS

2
Course Overview
3
IntroducingCircular A-110

• First issued in 1976
• Amended in 1993 and 1999
• Directed to Federal Agencies That Issue Grants
  and Cooperative Agreements

4
Purpose of Circular

• Establish uniform requirements for grants and
  cooperative agreements with
• colleges and universities
• hospitals and other non- profits

5
The BIG 3 Circulars for Higher Education

• A-21 Cost Principles
• A-110 Administrative Requirements for Grants
• A-133- Audits

6
Applicability

• A-110 applies to all federal agencies unless
  there are specific statutory exceptions
• Each Federal Agency must formally issues its
  implementation of A-110

7
Implementation

• Agency implementations are contained in the Code
  of Federal Regulations (CFR) or other official
  agency issuances

8
Examples

• HHS 45 CFR 74
• DOD 32 CFR 34
• NSF Grants Policy Manual

9
A-110 does not apply to

• Federal contracts for procurement of goods
  services
• Federal grants made to State Local Governments

10
Organization of the Circular

• Four Major Subparts
• General
• Pre-Award Requirements
• Post-Award Requirements

11
Organization of the Circular

• 4. After-the-Award Requirements
• AppendixContract Requirements

12
Subpart A General

• Federal awarding agencies shall not impose
  additional or inconsistent requirements EXCEPT
  ..

13
Subpart A General

• . As provided for in sections __.4 and __.14 or
  unless specifically required by Federal statute
  or executive order.

14
Definitions

• Acquisition cost of equipment
• Award
• Contract

15
Definitions

• Recipient
• Subaward
• Subrecipient

16
Deviations

• Require OMB Approval

17
Applicability of A-110 to Subricipients

• Applies to subrecipients that are institutions of
  higher education, hospitals, or other non-profit
  organizations

18
Applicability of A-110 to Subricipients

• Does not apply to subrecipients that are state
  and local governments

19
Subpart B Pre-Award Requirements

• Governments Role
• Purchaser
• Appropriate Instrument
• Contract

20
Subpart B Pre-Award Requirements

• Governments Role
• Partner
• Appropriate Instrument
• Cooperative Agreement

21
Subpart B Pre-Award Requirements

• Governments Role
• Patron
• Appropriate Instrument
• Grant

22
Forms

• Applicants shall use the SF-424 series
• OR
• Those forms prescribed by the Federal awarding
  agency

23
Special Award Conditions
24
Representations and Certifications

• Federal agencies should encourage recipients to
  submit on an annual basis

25
Metric System Measurement
26
Subpart C Post-AwardRequirements

• Financial and Program Management
• Property Standards
• Procurement Standards

27
Subpart C Post-AwardRequirements

• Reports and Records
• Termination and Enforcement

28
Financial and Program Management

• Requires recipients to have written procedures
  for determining reasonable, allowable and
  allocable

29
Financial and Program Management

• Requires recipients to have accounting records
  supported by source documents

30
Financial and Program Management

• Describes how recipients get paid and how
  agencies can withhold payments

31
Cost Sharing

• Costs of a Federal Program Not Paid by the
  Federal Government

32
Types of Cost Sharing

• Mandatory
• Voluntary
• Committed
• Uncommitted

33
How is Cost Sharing Accomplished?

• Cash
• In-kind
• Third Party

34
Qualifying Criteria

• Verifiable in grantees financial system
• Not counted as cost sharing on another Federal
  project

35
Qualifying Criteria

• Necessary for the project
• Allowable under the terms of the award
• Not paid with Federal Funds

36
OMB Clarifications

37
Cost Sharing Case Studies

• Case No. 1 Budget Review

38
Cost Sharing Case Studies

• Case No. 2 Real Money

39
Program Income

• Gross income earned by the recipient .
  generated by a supported activity or earned as a
  result of the award

40
Program Income Includes

• Income from fees for services performed
• Use or rental of property acquired under a
  Federal award
• Sale of commodities or items fabricated under an
  award

41
Program Income Requirements

• Must account for it
• Must be reported to the sponsor

42
Uses for Program Income

• Additional Funding
• Meet Cost Sharing Requirements
• Deducted from Federal Share of Project Costs

43
Revision of Budget and Program Plans

• Prior Approval Required for
• Change in scope or objectives of project
• Change in key personnel

44
Revision of Budget and Program Plans

• Prior Approval Required for
• Absence of PI for more than 3 months
• Need for additional Federal funds

45
Revision of Budget and Program Plans

• Prior Approval Required for
• Reduction of 25 or more in committed effort of
  the PI
• Transfer of funds allotted for training expenses

46
Revision of Budget and Program Plans

• Prior Approval Required for
• Issuing a subaward for substantive effort,
  unless provided for in the proposal

47
The Expanded Authorities

• Pre-award costs
• No cost extension (one time)
• Automatic Carry-forward

48
Non-Federal Audits

• Instructions to agencies on how non-Federal
  audits are to be performed

49
Period of Availabilityof Funds

• Instructions on spending period

50
Property Standards

• Instructions on management and disposition of
  property, including real property (land and
  buildings) and Federally-owned property

51
Property Standards

• Also includes instructions on management and
  disposition of equipment (special purpose and
  general purpose), supplies, intangible property
  and data

52
Procurement Standards and Procedures

• Instructions on how purchasing and procurement
  needs to take place

53
Reports and Records

• Instruction to agencies on both technical and
  financial reporting
• Also includes instructions on record retention

54
Record Retention

• Recipients must retain records for 3 years after
  the submission of the final expenditure report

55
Termination and Enforcement

• Instructions on how agencies can terminate an
  award (note either party can initiate
  termination)
• Instructions on remedies for non-compliance

56
Program IncomeCase Studies

• Case No. 3 Hows the Weather?

57
Program IncomeCase Studies

• Case No. 4 Travel Expenses

58
Program IncomeCase Studies

• Case No. 5 Atlas

59
Revision of Budget and Program PlansCase Studies

• Case No. 6 Scope This Out

60
Revision of Budget and Program PlansCase Studies

• Case No. 7 Leaving on a Jet Plane

61
Revision of Budget and Program PlansCase Studies

• Case No. 8 Too Much Effort!

62
Revision of Budget and Program Plans Case
Studies

• Case No. 9 Extend Yourself!

63
Section D After-the-Award Requirements

• Instructions on when to submit all required
  reports
• Instructions on how to deal with unobligated cash
  and subsequent adjustments as well as continuing
  responsibilities

64
Appendix A

• Contract Provisions flow down to all contracts
  (as applicable)
• Equal Employment Opportunity
• Copeland Anti-Kickback Act
• Davis-Bacon Act

65
Appendix A

• Contract Provisions flow down to all contracts
  (as applicable)
• Contract Work Hours and Safety Standards Act
• Rights to Inventions Made by Nonprofit
  Organizations and Small Businesses

66
Appendix A

• Contract Provisions flow down to all contracts
  (as applicable)
• Clean Air and Water Acts
• Byrd Anti-Lobbying
• Debarment and Suspension

67
Agency Implementations of OMB Circular A-110
68
Summary and Conclusions