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Source and Application of Funds - PowerPoint

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					    Circular A-110
Everything You Didn’t Want to
            Know
          Purpose of A-110
        Subpart C- Post Award
• Establishes uniform administrative
 requirements for Federal grants and
 agreements awarded to institutions of
 higher ed, hospitals, and other non-profit
 organizations.
      Post Award Requirements
• A-110 Subpart C - Sets standards for financial
  and program management of sponsored
  research awards in:
  FINANCIAL & PROGRAM MANAGEMENT
  –   Methods for making payments
  –   Cost sharing and matching requirements
  –   Accounting for program income
  –   Budget Revisions
  –   Audits
  –   Allowability of Costs
  –   Establishing Fund availability
        Standards for financial
        management systems
• Relate financial data to performance data
• Financial system must provide:
  – Financial results of each project
  – Identification of source & application of funds
  – Control & accountability over all funds,
    property & other assets
  – Comparison of outlays to budget amounts
         Standards (cont.)

• Procedures to minimize time between
  transfer of funds and disbursement of
  funds
• Procedures to determine reasonableness,
  allocability, and allowability of costs
• Accounting records supported by source
  documentation
Cost Sharing/Matching Funds
     Definitions of Cost Sharing
         (Matching Funds)
• A commitment made by WSU to fund a
 portion of the total cost of a sponsored
 agreement. The commitment may be for
 direct and/or indirect costs, and may
 consist of WSU funds or funds from
 outside sources. Matching may either be
 classified as voluntary or mandatory.
 Either form is a true commitment and
 must be fully documented.
Cost Sharing (Match) must meet all
      of the following criteria:
In general, same requirements apply to Non-Federal Share as apply to the Federal Share

• Verifiable from recipient’s records
• Not included as Match for any other federally
    funded program
•   Necessary and reasonable
•   Allowable under the applicable Cost Principles
•   Not paid by the Federal Government under
    another award
•   Provided for in the approved budget
•   Conform to other provisions
       Types of Cost Sharing

• Mandatory Cost Sharing
• Voluntary Cost Sharing
• Third Party In Kind Contributions
• Facilities and Administrative (F&A), also
 known as Indirect Costs
    What Can be Used to Meet Match
            Requirements?
•   Cash
•   Third Party Contributions
•   Unrecovered F&A costs (Indirects)
•   Contributions of services and property
•   Volunteer Services (necessary for project)
•   Other employee services (regular rate +
    benefits)
•   Donated supplies (at reasonable & fair market
    value)
   Unrecovered Indirect Costs

• May be included as part of cost sharing or
 matching only with the prior approval of
 the awarding agency.

• Current approved rate agreement is 36%
 of Salaries, Wages and Benefits
        Audit Procedures for Match
                Compliance
• Verify that required Matching Contributions were
    met
•   Ascertain sources of matching contributions and
    verify that they were from an allowable source
•   Test records to corroborate that value of in-kind
    contributions are in accordance with OMB cost
    principals
•   Verify transactions used to match are in compliance
    with allowable cost principles
    Procurement Standards


PURPOSE:
To establish procedures for procurement
of supplies and other expendable
property, equipment, real property, and
other services
Codes of Conduct regarding Awards
  and Administration of Contracts
• Recipients shall maintain written standards
  of conduct governing performance of
  employees involved
• Cannot participate if conflict of interest
  exists
• Cannot accept gratuities, favors, or
  anything of monetary value from
  contractors, subs, or parties to subgrants
              Competition

• Must provide open and free competition
• Contractors that develop or draft specs or
 requirements, statements of work,
 invitations for bids and/or requests for
 proposals are excluded
   Required Written Procurement
            Procedures
• Recipients must not purchase unnecessary
  items
• Determine which procurement methods
  are most economical and practical
• Positive efforts to utilize small business,
  minority owned firms & women’s business
  enterprises, whenever possible
Procurement procedures (cont.)
• Solicitations for goods & services must provide:
   – Clear & accurate descriptions of technical requirements
   – Specify requirements which bidders must fulfill
   – Describe minimum acceptable standards
   – Include specific features of “brand name or equal” descriptions
   – Acceptance of products & services dimensional in the metric
     system
   – Preference for products & services that conserve natural
     resources, protect the environment, and are energy efficient –
     when practicable and economicaly feasible
      Record retention & access
            requirements
• Financial records, supporting
 documentation, and statistical records –
 Three (3) years from date of submission
 of final report
  – If litigation occurs – until all litigation or
    claims are resolved
• Real Property or Equipment – Three (3)
 years after final disposition
                   Closeout
• All reports (financial, performance, other) must
    be submitted within 90 days after completion
    date of award
•   Unless extension granted, all obligations
    incurred must be liquidated within 90 days
•   Prompt refund of any balances of unobligated
    cash advances
•   Awarding agency to make settlement for any
    upward or downward adjustments to costs after
    closeout reports received
           Closeout (cont.)

• Accounting of real or personal property
  acquired with federal funds
• If no final audit done prior to closeout,
  awarding agency retains right to recover
  disallowed costs resulting from the final
  audit
    Closeout Does Not Affect:

• Right to disallow costs and recover funds
  on the basis of a later audit
• Obligation of recipient to return funds due
• Audit requirements
• Property management requirements
• Record retention

				
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