2 CFR PART 215 (FORMERLY OMB CIRCULAR A-110)

UNIFORM ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND COOPERATIVE

AGREEMENTS FOR INSTITUTIONS OF HIGHER EDUCATION, HOSPITALS, AND OTHER NON-PROFIT ORGANIZATIONS

UMBC Office of Sponsored Programswww.umbc.edu/research/OSP

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Departmental Research Administrators Training Track

2 CFR PART 215 – Course Overview

Section A – Introduction to 2 CFR Part 215

Section B – Pre-Award Requirements

Section C – Post-Award Requirements

Section D – After-the-Award Requirements

Section E – Additional Resources

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SECTION A – Introduction to 2 CFR Part 215

Questions to Answer: Why did OMB develop Uniform Administrative

Requirements?

What are the Uniform Administrative Requirements and to whom do they apply?

What are some recent developments concerning the administrative requirements?

Why did OMB develop Uniform Administrative Requirements?

During the 1960’s the federal government initiated many new grant programs

Federal agencies were acting independently in administering their grant programs and guidelines

Standardization, consistency, and efficiency of federal grant programs was sought

Intergovernmental Cooperation Act of 1968 1976 – OMB issues A-110

What are the Uniform Administrative Requirements and to whom do they apply?

OMB Circular A-102 – for State and Local Governments, Indian Tribal Governments

OMB Circular A-110 (2 CFR Part 215) A-102 and A-110 apply to all federal agencies,

federal grant recipients and subaward organizations

Federal agencies can only apply more restrictive requirements after approval from OMB

Federal agencies can impose sanctions on recipient organizations that do not comply with the applicable administrative requirements

What are some recent developments concerning the Administrative Requirements?

Title Change – 2 CFR 215 2 CFR 215 will soon include agency specific variations

and exceptions Standard Reporting Forms:

Federal Financial Report Performance Progress Report Research Performance Progress Report Real Property Report Tangible Personal Property Report Summary Report of Inventions

Standard Research Terms and Conditions

SECTION B: Pre-Award Requirements

Questions to Answer: What is the Federal Grant and

Cooperative Agreement Act? What forms should be used for applying

for Federal Assistance? What is E.O. 12372? What are “special award conditions”?

What is the Federal Grant and Cooperative Agreement Act?

Passed into law in 1977 Establishes government-wide criteria for

determining the appropriate legal instrument for funding extramural activity

Defines uses for: Grants – to accomplish a public purpose Cooperative Agreements – for substantial

agency involvement Contracts – primary purpose is acquisition of

services for direct benefit of Fed

What forms should be used when applying for federal assistance?

215.12.A – “Federal awarding agencies shall comply with the applicable report clearance requirements of 5 CFR part 1320, ‘Controlling Paperwork Burdens on the Public,’ in place of or as a supplement to the Standard Form 424 (SF-424) series”

215.12.B – “Applicants shall use the SF-424 series or those forms and instructions prescribed by the Federal Awarding Agency”

Most grants.gov application packages use the SF-424 series

What is E.O. 12372?

Executive Order 12372 - “Intergovernmental Review of Federal Programs”

Issued to foster federalism by relying on State and local processes for the coordination and review of proposed Federal financial assistance

Applicants are required to indicate on the SF 424 whether the program falls under E.O. 12372

SPOC for Maryland:Linda C. Janey, J.D.Director, Maryland State Clearinghouse for Intergovernmental Assistance

Please contact OSP for questions on whether or not a project falls under E.O. 12372

What are “special award conditions”? 215.14 – “If an applicant or recipient: has a history of

poor performance, is not financially stable, has a management system that does not meet the standards prescribed in this part, has not conformed to the terms and conditions of a previous award, or is not otherwise responsible, Federal awarding agencies may impose additional requirements as needed…”

Federal awarding agencies are required to notify the applicant in writing as to the nature of any additional requirements, and these requirements must dissolve after problematic conditions have been met

Section C: Post-Award Requirements

Questions to Answer: What are the Financial and Program

Management Standards? What are the Property Standards? What are the Procurement Standards? What are the Reporting and Record-

Keeping Standards? What are the Termination and

Enforcement Standards?

What are the Financial and Program Management Standards?

Purpose: 215.20 “Sections 215.21 through 215.28 prescribe standards for financial management systems, methods for making payments and rules for: satisfying cost sharing and matching requirements, accounting for program income, budget revision approvals, making audits, determining allowability of cost, and establishing fund availability.”

What are the Financial and Program Management Standards? (cont’d)

Financial Management Systems: 215.21.A – “Federal awarding agencies shall require recipients

to relate financial data to performance data and develop unit cost information whenever practical”

215.21.B – Recipients’ financial management system should provide for the following: Accurate disclosures of financial results and records in accordance

with applicable reporting reqs. Effective control over and accountability of funds, property, and other

assets Comparison of outlays with budget amounts for each award Written procedures to minimize time between transfer of funds from

US Treasury Written procedures for determining reasonableness, allocability, and

allowability of costs, in accordance with Federal Cost Principles

What are the Financial and Program Management Standards? (cont’d)

215.22 Payment: (A) Procedures should minimize time before transfer of

funds from U.S. Treasury 215.22.E.(1) – When reimbursement method is used,

the Federal awarding agency shall make payment within 30 days after receipt of the billing

215.22.H – Agency shall not withhold payment for proper charges during the award period unless: Recipient has failed to comply with project objectives, the

terms and conditions of the award, or Federal Reporting Requirements

The recipient or subrecipient is delinquent in a debt to U.S. as defined in OMB Circular A-129

What are the Financial and Program Management Standards? (cont’d)

215.23 Cost Sharing: (A) Cost-sharing contributions shall be accepted only when the costs are:

(1) verifiable from the recipients’ records (2) not included as contributions for any other federally-assisted project (3) necessary and reasonable for completion of project (4) allowable under the applicable Cost Principles (5) not paid by Fed under another award (6) provided for in the approved budget

(B) Unrecovered indirect costs may be included as part of cost-sharing or matching only with prior approval of Agency

(C),(D), (E), (F),(G), (H) – how to delineate value of various contributions215.25 Revision of Budget and Program Plans: (B) Recipients are required to report deviations from budget and program

plans, and request prior approvals for: Changes in scope, objective, or key personnel (and/or effort, >25%), direct to

indirect costs, training allowances, subcontracting, etc.

What are the Financial and Program Management Standards? (cont’d)

215.27 Allowable Costs – Recipient needs to follow applicable cost principles UMBC – must follow OMB Circular A-21 (a.k.a. 2 CFR

220) “Cost Principles for Educational Institutions”215.28 Period of Availability of Funds “Where a funding period is specified, a recipient

may charge to the grant only allowable costs resulting from obligations incurred during the funding period and any pre-award costs authorized by the Federal awarding agency”

What are the property standards?

215.30 Purpose of property standards To set forth uniform standards governing management and

disposition of property furnished by the Federal Government whose costs was charged to a project support by a Federal award

215.31 Insurance coverage Recipient needs to provide at least equivalent coverage for

federal property as it would its own215.32 Real Property Federal awarding agencies shall prescribe requirements that

include the following: Title to property to remain with recipient Recipient shall obtain written approval for its use on other projects Disposition instructions

What are the property standards? (cont’d)215.34 Equipment (A) title to equipment shall vest in recipient (B) if used by outside orgs., fee must be at least the minimum charged in

private industry (C) when use for equipment expires, the equipment is to be used on other

federally sponsored projects, first by other projects supported from same funding agency

(E) “When acquiring replacement equipment, the recipient may use the equipment to be replaced as trade-in or sell the equipment and use the proceeds to offset the costs of the replacement equipment…”

(F.1) Equipment records should include (among other information): Description Serial number Source Acquisition date Location and condition Unit acquisition cost Disposition data

What are the property standards? (cont’d)215.35 Supplies and other expendable property (A) title to supplies vest in recipient, if leftover supplies

exceed $5K and can not be used on other projects (federal and non-federal), then recipient must reimburse the Fed.

215.36 Intangible Property (A) “The recipient may copyright any work that is subject to

copyright and was developed, or for which ownership was purchased, under an award. The Federal awarding agency (ies) reserve a royalty-free, nonexclusive and irrevocable right to reproduce, publish or otherwise use the work for Federal purposes, and to authorize others to do so.”

(B), (C), (D), (E) – patent rights, FOIA responsibilities, etc. for Agency and recipient

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What are the procurement standards?215.44 Procurement Procedures (A) Recipients shall establish written procurement procedures (A.3.I-VI) Recipient solicitations for goods and services should include (among

others): Clear description of the technical requirements for the material, product or service to

be procured Requirements for the bidder and evaluation criteria Preference for “green” products and services

(B) Recipient shall make efforts to utilize small business, minority-owned firms, and women’s business enterprises whenever possible

(C) Recipient shall determine which procuring instrument to use (fixed-price contracts, cost-reimbursable contracts, purchase orders) in the best interest of the program

(D) Procurements should only be made with responsible contractors who possess the ability to perform, have a good history, and have technical/financial resources

(E) Circumstances when consultation with Federal awarding agency should be sought regarding the procurement

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What are the procurement standards? (cont’d)

215.45 Cost and Price Analysis – “Some form of cost or price analysis shall be made and documented in the procurement files in connection with every procurement action.”

Price analysis – comparison of price quotations, market price, etc. Cost analysis – is the “review and evaluation of each element of cost

to determine reasonableness, allocability, and allowability215.46 Procurement Records – Procurement records should include: (A) Basis for contractor selection (B) Justification for lack of competition when competitive bids are not

obtained (C) Basis for award cost or price214.47 Contract Administration – “A system for contract administration

shall be maintained to ensure contractor conformance with the terms, conditions and specifications of the contract to ensure adequate and timely follow up of all purchases”

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What are the Reporting and Record-Keeping Standards?

215.50 – Purpose of Reports and Records“Sections 215.51 -215.53 set forth the

procedures for monitoring and reporting on the recipient’s financial and program performance and the necessary standard reporting forms. They also set forth record retention requirements”

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What are the Reporting and Record-Keeping Standards? (cont’d)

215.51 Monitoring and Reporting Program Performance Recipients are responsible for managing and reporting all

activity supported by the award (including subawards) (A) “Federal Agency shall prescribe the frequency with

which the performance reports shall be submitted. Except as provided in 215.51 (F), performance reports shall not be required more frequently than quarterly, or less frequently than annually.” Annual reports should be due within 90 days after the grant year Quarterly/semi-annual reports shall be due within 30 days after

reporting period Final performance reports are due 90 days after termination

date of award

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What are the Reporting and Record-Keeping Standards? (cont’d)

215.51 (D) – Performance reports should include the following: A comparison of actual accomplishments with program

objectives for that period Reasons why established goals were unmet, if necessary Other information as necessary, including explanations for

cost overruns, etc 215.51 (F) – Recipients shall notify the Awarding

Agency of any developments that significantly impact/impair the program activities

215.51 (G) – “Federal awarding agencies may make site visits, as needed.”

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What are the Reporting and Record-Keeping Standards? (cont’d)

215.52(A) Financial Reporting – “The following forms or such other forms as may be approved by OMB are authorized for obtaining financial information from recipients”

215.52.A.(1) – SF-269 or SF-269A, Financial Status Report (FSR) Federal agency shall require recipients to use SF-269 or SF-269A for all

nonconstruction programs However, agencies have the option of not requiring SF-269/SF-269A, if

the SF-270, Request for Advance or Reimbursement, or SF-272, Report of Federal Cash Transactions, is used and provides adequate information

Federal Agency will determine whether the report shall be on a cash or accrual basis

FSR should not be required more frequently than quarterly or less frequently than annually

FSR’s should be due within 30 days after reporting period, Final FSR’s within 90 days of award termination

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What are the Reporting and Record-Keeping Standards? (cont’d)

215.52.A.(2) – SF-272 Report of Federal Cash Transactions

Used when funds are advanced to recipients in order to monitor cash advancements

Forecasts of expenditures may be required SF-272 are due within 15 days following the

end of each quarter. Recipients receiving more than $1million/year need to submit report monthly

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What are the Reporting and Record-Keeping Standards? (cont’d)

215.53 Retention and access requirements for records 215.53.B – “Financial records, supporting documents, statistical records, and all

other records pertinent to an award shall be retained for a period of three years from the date of submission of the final expenditure report”

Exceptions: If any litigation,claim, or audit is in process Records for real property and equipment need to be retained for three years after final

disposition If/when records are transferred to Awarding agency, the three year requirement is no

longer applicable 215.53.E “The Federal Awarding Agency, the Inspector General, Comptroller

General of the United States, or any of their duly authorized representatives, have the right of timely and unrestricted access to any books, documents, papers, or other records of recipients that are pertinent to the awards, in order to make audits, examinations, excerpts, transcripts and copies of such documents.”

Access to personnel also included

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What are the Reporting and Record-Keeping Standards? (cont’d)

215.53.F – No Federal Agency can impose restrictions on recipients that limit public access to the records pertinent to an award

215.53.GG – Indirect cost rate proposals, cost allocation plans, etc.

(1) Records submitted as apart of IDC calculation, cost allocation plans, etc. must be retained for three years after that submission date

(2) If records are not submitted as apart of IDC calculation, cost allocation plans, etc., then records should be retained for three years after end of the fiscal year of that proposal

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What are the Termination and Enforcement Standards?

215.61 Termination (A) Awards may be terminated if:

The recipient materially fails to comply with the terms and conditions of the award

Both the Federal Agency and Recipient agree to terminate , and to the termination conditions

“By the recipient upon sending to the Federal awarding agency written notification setting forth the reasons for such termination, the effective date, and, in the case of partial termination, the portion to be terminated.”

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What are the Termination and Enforcement Standards? (cont’d)

215.62 – Enforcement 215.62.A. – Remedies for Noncompliance:

Federal agencies are able to withhold cash payments pending problem resolution

Disallow costs associated with noncompliance “Wholly or partly suspend or terminate the current award.” Withhold further awards for the project/program

215.62.B. – Hearings and appeals Awarding agency shall provide opportunity for recipient to

appeal any disciplinary action taken by Agency 215.62.C. – Costs incurred during a suspension or after

termination of an award are not allowable unless written into termination/suspension conditions

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Section D: After-the-Award Requirements

Question to Answer: What are the standards for closeout

procedures?

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What are the standards for closeout procedures?

215.71 – Closeout Procedures 215.71(A) – “Recipients shall submit, within 90 calendar days after

the date of completion of the award, all financial, performance, and other reports as required by the terms and conditions of the award. The Federal awarding agency may approve extensions when requested by the recipient.”

215.71(B) – “Unless the Federal awarding agency authorizes an extension, a recipient shall liquidate all obligations incurred under the award not later than 90 calendar days after the funding period or the date of completion…”

(C), (D), (E), (F), – Fed shall make prompt payments to recipient, recipient shall promptly refund unobligated balances (OMB Circular A-129), if authorized by award terms/conditions Agency shall make adjustments for Federal Share, real/personal property to be accounted for

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What are the Termination and Enforcement Standards? (cont’d)

215.72 Subsequent adjustments and continuing responsibilities.

(A) “The closeout of an award does not affect any of the following.” (1) Right of the Federal awarding agency to disallow

costs or recover funds on basis of later audit review (2) continued obligation of the recipient to return funds

due as a result of corrections, audit, etc. (3) “Audit Requirements in 215.26” (4) Property management requirements (5) Record retention requirements

215.73 Collection of Amounts Due

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Section E: Additional Resources

2 CFR 215 “Uniform Administrative Requirements for Grants and Cooperative Agreements for Institutions of Higher Education, Hospitals, and other Non-Profit Organizations” (formerly OMB Circular A-110) available at:

http://www.whitehouse.gov/omb/circulars/a110/a110.html

OMB Circular A-21 “Cost Principles for Educational Institutions” available at:http://www.whitehouse.gov/omb/circulars/a021/a021.html

Standard Forms for reporting available at:http://www.whitehouse.gov/omb/grants/grants_forms.html

www.umbc.edu/ospawww.umbc.edu/procurementwww.umbc.edu/FinancialServices/grantacct.html - Grant and Contract Accountingwww.umbc.edu/otd - UMBC Office of Technology Development

All Federal Agency/Grantor websites

www.grants.gov

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