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1SILC-NET, a project of ILRU – Independent Living Research Utilization 1
SILC-NET at ILRU Presents…SILC-NET at ILRU Presents…
Playing by the Rules: Playing by the Rules:
A SILC Fiscal Guide to Spending A SILC Fiscal Guide to Spending Federal MoneyFederal Money
Part IIIPart III – EDGAR & OMB
April 28, 2011
Presented by:Tim and Melissa GlissonTim and Melissa Glisson
2SILC-NET, a project of ILRU – Independent Living Research Utilization 2
SILC-NET at ILRU Presents…SILC-NET at ILRU Presents…
Playing by the Rules: Playing by the Rules:
A SILC Fiscal Guide to Spending A SILC Fiscal Guide to Spending Federal MoneyFederal Money
Part IIIPart III – EDGAR & OMB
April 28, 2011
Presented by:Tim and Melissa GlissonTim and Melissa Glisson
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Session Objective
• Identify important fiscal regulations affecting the SILCs, including EDGAR 74-76, and OMB Circulars A-110, & A-122.
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Regulatory Agencies
“CAN WE DO THAT ? ”
Where Do We Look? &
Why or Why Not?
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EDGAR
34 CFR
OMB Circulars
364 - 366
FASB & GAAP
74, 75, 77, 82
A-110, A-122 & A-133
The Act
Regulatory Agencies Pyramid
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EDGAR
34 CFR
OMB Circulars
364 - 366
FASB & GAAP
74, 75, 77, 82
A-110, A-122 & A-133
The Act
State Law State Law
Regulatory Agencies, cont’d.
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The Rehabilitation Act
Sources of SILC Funding• Title VII - Part B • Innovation & Expansion• Social Security Reinvestment Fund• Other Federal, State or Private
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The Rehabilitation Act, cont’d.
Title VII – Part BSection 713
“The State may use funds received under this part to provide the resources described in section 705 relating to the SILC.”
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The Rehabilitation Act, cont’d. 2
Innovation & Expansion Funds
Section 101 (a) (18) says Innovation & Expansion Funds can be used for:
• Innovative ways to expand and improve VR,
and;• to support the SRC and SILC.
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The Rehabilitation Act, cont’d. 3
• Social Security Reimbursement Funds (SSRF)
• Section 108; States can use Social Security Reimbursement Funds in support of SILCs and IL services.
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EDGAR: Education Department General Administrative Regulations
• Part 74 – Uniform Administrative Requirements
• Part 75 – Federal Grant Programs• Part 77 – Federal Grant Definitions• Part 82 – Lobbying & Advocacy for D.O.E.
grantees
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EDGAR 74
Uniform Administrative Requirements
• Standards for Financial Management• Program Income Accounting• Written Procedures• OMB 122 Compliance• Record Retention• Required filings
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EDGAR 74, cont’d.
Allowable Uses of Program Income
• Used to further project or program• Used to finance non-Federal share• Deducted from total allowable costs
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EDGAR 74, cont’d. 2
Financial Management Systems must be:
• Accurate• Current• Have complete Disclosure
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Requires written procedures:
• Reasonableness• Allocability (aka “Cost Allocation”) • Allowability
EDGAR 74, cont’d. 3
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EDGAR 75
• Application Notice• Selection Procedures• Conflict of Interest• Use of Consultants
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EDGAR 75 – Conflict of Interest
• Grantees may not permit a person to make an administrative decision if:– They or family directly benefit– They are a public official– They have family or business relationship
with the grantee– They are motivated by personal gain
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Conflict of Interest
Form 990 asks for written:• Conflict of Interest Policy• Procedures for identifying and dealing with conflicts of interest
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Questions and Answers
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EDGAR 82
No Using Federal $$$ to Lobby for Federal $$$!
Places restrictions on grantees using Federal funds to influence Federal
officials or Congress People in connection with awarding Federal
funds.
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OMB A-122
Says Federal $$$ Can’t Pay For…
• Attempts to influence legislation• Attempts to influence legislators • Attempts to influence elections• Contributions to political parties • Formation of lobbying organizations
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Rehabilitation Act Says
SILCs CAN Advocate in the following ways…
• provide assistance or advice to legislators in response to a written request• provide non-biased analysis• provide information about your own agency
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Internal Revenue Code (IRC)
SILC/Non-Profits Can Use a Portion of non-Federal $$ For:
• Direct Lobbying – state a position on legislation
• Grassroots Lobbying – “call to action” to influence legislation
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IRC
How Much $$?
• Direct Lobbying – state a position on legislation
• Grassroots Lobbying – “call to action” to influence legislation
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OMB Circulars
• A-110 Uniform Administrative Requirements
• A-122 Cost Principles• A-133 Independent Audits
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OMB Circulars A-110Uniform Administrative RequirementsStandards for Financial Management Systems• Award payment• Cost sharing or matching• Procurement procedure• Financial reporting
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OMB Circulars A-122Cost Principles
Determine costs of the award so:
• Grant is managed properly• Government bears its fair share• Money is spent legally
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OMB Circulars A-122Cost Principles, cont’d.
• Allowable• Reasonable• Allocable
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OMB Circulars A-122Cost Principles, cont’d. 2
Allocable & Allowable does not mean Reimbursement!
…HMMMMM
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OMB Circulars A-122Cost Principles, cont’d. 3
Direct Costs
Can be identified specifically to a final cost objective.
– Project– Service– Direct activity
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OMB Circulars A-122Cost Principles, cont’d. 4
Costs are Allowable if:
– Reasonable for the award’s performance– Adequately documented– Consistent– In accordance with GAAP– Conform to cost limitations / exclusions– Time frame appropriate to contract
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OMB Circulars A-122Cost Principles, cont’d. 5
Reasonable
Costs incurred with proper consideration of
the circumstances prevailing at the time.
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OMB Circulars A-122Cost Principles, cont’d. 6
Costs to consider when making judgments about reasonableness:
– Prevailing circumstances– Ordinary and necessary– Laws and contracts– Responsible and prudent
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OMB Circulars A-122Cost Principles, cont’d. 7
Indirect Costs
– Incurred for common cost objectives, not assigned to specific cost objectives.
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OMB Circulars A-122Cost Principles, cont’d. 8
Allocable
• Consistent with other costs• Incurred specifically for award• Benefits award and other work• Distributed in reasonable proportion to
benefits• Necessary to overall operation, not to a
specific cost objective
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OMB Circulars A-122Cost Principles, cont’d. 9
Cost Allocation Plan (CAP)
• EDGAR 74.21 & OMB A-110, A-122 (approved by
Cognizant Agency)
• Narrative describing methodologies for allocating
indirect expenses to cost objectives
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OMB Circulars A-122Cost Principles, cont’d. 10
Cost Allocation Plan (CAP):
“Designed to provide that the Federal Government bear its fair share of the costs except where restricted or prohibited by law”
Financial “blueprint” for agency
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OMB Circulars A-122Cost Principles, cont’d. 11
Cost Allocation Plan (CAP):
• Simplified (Indirect Cost Rate)• Special Indirect Cost Rate• Multiple• Direct – preferred method
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OMB Circulars A-133Independent Audits
• Section 725 of the Act• Single Audit Act mandates audit for
agencies receiving $500,000 or more in federal funds• Allowable expense for agencies required
(133.230)• Also EDGAR 34 CFR 74.26
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FASB 116Accounting Principles
• Contributions• Pledges• Donor Conditions• Donor Restrictions
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FASB 117Financial Statements
• Financial Position• Activities• Functional Expenses• Cash Flows• Financial Disclosures
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Form 990
The annual federal tax return form which must be filed for most non-profits
– Failure to file penalties– Conflict of Interest
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Form SF-269
Annual grant performance status report to cognizant
agency that helps to ensure:
– Expenses are recorded– Funds are spent in the given grant period
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IL Regs, EDGAR, OMB Circulars, FASB, & More
Document Parts/Title Web Address
IL Regs 34 CFR 364-366 http://www.gpoaccess.govEDGAR 34 CFR Parts 74, 75, 77, 82, http://www.ed.gov/policy/fund/reg/edgarReg/edgar.htmlOMB Circulars:A-110 Uniform Administrative
Requirements http://www.whitehouse.gov/omb/circulars/a110/2cfr215-0.pdf
A-122 Cost Principles for Nonprofit Organizations,
http://www.whitehouse.gov/omb/fedreg/2005/083105_a122.pdf
A-133 Audits of States, Local Governments, and Non-Profit Organizations
http://www.whitehouse.gov/omb/circulars/a133/a133.pdf
Other:
FASB 116 Contributions http://www.gasb.org/pdf/fas116.pdfFASB 117 Financial Statements http://www.1800net.com/nprc/fasb117.html
Advocacy & Lobbying http://www.muridae.com/nporegulation/lobbying.htmlCost Allocation www.o.gov/programs/cil/legislation.htmlIRS Form 990 http://www.irs.gov/pub/irs-pdf/f990.pdfIRS Form 269 http://www.irs.gov/pub/irs-utl/sf269-blank.pdf
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Questions and Answers
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Wrap Up and Evaluation
Please complete the evaluation of this program by clicking here:
https://vovici.com/wsb.dll/s/12291g49da3
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SILC-NET Attribution
Support for development of this Webinar/teleconference was provided by the U.S. Department of Education, Rehabilitation Services Administration under grant number H132B070003-10. No official endorsement of the Department of Education should be inferred. Permission is granted for duplication of any portion of this PowerPoint presentation, providing that the following credit is given to the project: Developed as part of the SILC-NET, a project of the IL NET, an ILRU/NCIL/APRIL National Training and Technical Assistance Program.