AREERA - Section 105 & 204Compliance

Session 38 - Tuesday, May 18, 2010

Brenda BarnettBudget & Fiscal Specialist

Administrative Guidance

• Certification is required by the land-grant institutions (LGI) of expenditures of formula grant funds used to meet the requirements of the Agricultural Research, Education, and Extension Reform Act of 1998 (AREERA).

• Actual Expenditures of Federal Funding for Multistate Extension and Integrated Activities (NIFA-REPT)

• Revised report designed so that each institution will submit only one form with attached brief summaries for each fiscal year (FY) of funding.

Administrative Guidance• The new form allows for reporting on all three AREERA requirements.

• Includes a certification statement as recommended by USDA OIG.

• Form should be submitted for each fiscal year of funding.

• Due by April 1st following the close of the Federal FY.

• Extension of time for reporting may be granted with a written or email request.

• Must be signed and dated by either the Research or Extension Director, or both is desired.

Administrative Guidance• Must include brief summaries to support titles of planned program activity.

– Providing brief summaries for Multistate and Integrated activities highlights those activities listed on the CSREES-REPT form, and allows NIFA to tie the amounts you listed on the expenditure report to specific activities.

– Brief summaries are a small paragraph description of the titles of the planned program activity listed for that FY of funding.

• Expenditures reported are matched against the results received from multiplying the target percentage and the applicable FY allocation (e.g. target percentage times FY allocations which includes:– Hatch Regular and Hatch MRF (Integrated Activities)– Smith Lever only (Integrated Activities and Mulitstate Extension)

CarryoverMultistate Extension and Integrated Activities• Requirements

– 1-year carryover period for Hatch Act funds– 4-year carryover period for Smith-Lever Act funds, for a total award

length of 5 years

• Possibility exists that an AREERA requirement may not be completed for a FY until the following or subsequent FY. Interim Report should be filed. Please note carry-over limitations apply to the requirements (e.g. Integrated Hatch funds must be achieved within a 2-year period).

• “Excess” not regular carry-over balances will be reported and the LGI will be contacted and given the opportunity to either confirm the excess carryover or submit a revised NIFA-REPT form within 60 days of notification.

CarryoverMultistate Extension and Integrated Activities

• If it is confirmed the excess carryover exists, after a final NIFA-REPT is submitted, funding will be reduced in the appropriate fund.

• Any carryover reported on NIFA-REPT will be tracked to ensure that Multistate Extension and Integrated requirements are met for each FY of funding.

• Failure to submit FY 2009 NIFA-REPT will result in 4th quarter FY 2010 funds being placed “on hold”.

• Extensions of time for reporting may be granted with a written or email request.

AREERA WaiversHatch Regular & Hatch Multistate

• AREERA (Section 105 & 204 Compliance)– Research or Extension Director may submit a letter to the

NIFA Director requesting a waiver.– All LGI’s should submit a request for waiver as soon as it

is recognized that the State will be unlikely to satisfy the matching requirement.

– Post waivers require LGI’s to provide an explanation and justification as to why the request was not made in the appropriate FY.

AREERA Waiver - Criteria

• Criteria for waiver approval:

– Natural Disaster, flood, fire, tornado, hurricane, or drought;

– State/institution facing a financial crisis; and/or;

– Other similar circumstances.

AREERA Waiver Request

• Waiver requests must indicate the name of institution, type of request (i.e., multistate extension or integrated), appropriate FY, the basis for request (i.e., one or more of criteria), supporting justification, back-up documentation (i.e., newspaper articles and/or clippings; State budget projects), and amount.

• NIFA will notify the institution if additional documentation is required, and if the request has been approved or denied.

• Reminder….For post waivers, institutions must provide an explanation and justification as to why request was not made in appropriate FY.

AREERA Waiver Request

• All waivers are approved by NIFA Director.

• If possible, waiver requests will be processed in 60 days.

AREERA FY 2009 Review• Reports

– Received 45 out of 53 land-grant institution reports to date.• LGI’s who have not submitted the FY 2009 NIFA-REPT, will have

their FY 2010 4TH quarter funds placed “on-hold”;

• Attach brief summaries; • Incorrect allocations;• Reporting “target level” spending• Waivers requested: 5 (pre & post)

AREERA - UPDATE• Re-issuance of proposed guidance

– Tentatively will be published in the Federal Register as Interim Final with a 60-day comment period.

– Will be effective upon publication.– Comments solicited for the final version (comments

received in 2008 & 2009 will be incorporated)– Maximum flexibility per the legislative requirement.– One Solution reporting requirements with Plan of Work

being sought.

AREERARe-setting & Establishing Targets• Institutions should re-examine and possibly revise AREERA targets

previously set, particularly if they were below 25 percent.

• Confirmation of existing targets or revisions of existing targets are due by August 16, 2010. Revised targets will take effect on October 1, 2010 (FY 2011 funding and thereafter)

• Re-submission of new forms, if appropriate:– NIFA-Base – NIFA-Target– NIFA-Plan

AREERARe-setting & Establishing Targets• Newly established targets will not be retroactive.

• NIFA will not require the institutions to make up any differences between old and new targets.

• LGI will still be responsible for meeting the target spending levels set for previous years.

• NIFA has carefully considered LGI comments and will incorporate the comments in the final version

AREERA Contacts• Brenda Barnett – NIFA-REPT expenditure reporting

(202) 401-6520bbarnett@nifa.usda.gov

• Mary Snieckus - Policy & Oversight Branch – AREERA Guidance(202) 720-3842