Public Assistance Eligibility & Grants Management 2 - 1
FEMA Public Assistance Program
FEMA Region III – Philadelphia
Will Blair
Senior Emergency Management Program Specialist
(215) 931-5576
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FEMA Public Assistance Grant Program
Eligible Applicants:
State and Local governments
Certain Private Nonprofit entities
Grant award program to provide supplemental assistance to reimburse reasonable costs associated with completing eligible work.
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CATEGORIES OF WORK
Emergency – 6 Months
A - Debris Removal
B - Emergency Protective Measures
Permanent – 18 Months
C - Roads & Bridges
D - Water Control Facilities
E - Buildings & Contents
F - Utilities
G - Other (Parks, Recreation etc.)PA Guide Pages 66-87
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COST
PA Guide Page 40
Types of Direct Costs:
Force Account (your resources):LaborEquipmentMaterials
Contract Costs (outside resources)
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CONTRACT
ELIGIBILITY
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COSTCONTRACTS
Process key elements:
Reasonable for clearly defined ‘Scope of Work’
Competitively Procured
Qualifications of proposers/bidders
Not contingent on FEMA funding
Comply w/Federal, State and Local procedures Ex: VA Procurement Act
Cost Analysis
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COSTCONTRACTS
DOCUMENTATION!
DOCUMENTATION!
DOCUMENTATION!
To include:Procurement ProcessRationale – Selections/DecisionsProcesses, inspections, payment, etc.
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COSTCONTRACTS
Full and Open Competition:
Requirement - Intended for all procurements
Stimulates better, lower prices
Pre-qualifying – non-emergency periods
Avoid restricting competition
PA Guide page 51 - 53
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COSTCONTRACTS
Cost or price analysis
Required for ALL procurement actions Including amendments/change orders
Tests REASONABLENESS
Independent estimates
PA Guide page 51 - 53
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COSTCONTRACTS
Accepted Procurement Methods:
Small Purchase
Sealed Bid
Competitive proposals
Non-competitive proposals
PA Guide page 51 - 53
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COSTCONTRACTS
Accepted Procurement Methods (cont’d):
Non-competitive proposals:Item available only from a single sourceEmergency requirement which will not permit a delay – Very Limited in duration
FEMA authorizes a noncompetitive proposal
Solicitations attempted - Competition is determined inadequate
PA Guide page 23
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3 Types of Contracts FEMA will reimburse:
Lump Sum - defined scope Unit Price – itemized workCost plus fixed fee – lump sum or unit price WITH a fixed contractor fee
COSTProcurement of Contracts
PA Guide page 53
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NOT ELIGIBLE
Cost plus a percentage of contracts
Piggyback Contracting – not competitive / price structure may vary
Contingency
COSTProcurement of Contracts
PA Guide page 52 - 53
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Time and MaterialsSHOULD BE AVOIDED
Emergency Work ONLY
Typically not more than 70 hours -immediately following a disaster
Must be Reasonable
Must contact State for guidelines
COST Procurement of Contracts
PA Guide page 53
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Time and MaterialsMust:
Include a ‘Scope of Work’
Note: As good as can be developed at the time
Be DOCUMENTED
Be closely monitored
Include a Cost Ceiling
– ‘Not to exceed’ clause must be included
COST Procurement of Contracts
PA Guide page 53
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PROCUREMENT REVIEW
Ensure Procurement Process includes:
A clearly defined SCOPE OF WORK
Following of the VA Procurement Act & FEMA’S policy
Documenting of all processes for proposals or bids
All contracts include a maximum fixed cost (no open ended contracts)
Competitive bidding
(continued)
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PROCUREMENT REVIEW
Ensure Procurement Process includes: (con’t)
“Emergency Procurement” typically limited to the first 70 hours
Use written bid request as needed (fax or email)
Contracts must include a termination for convenience clause
Contract amendments or modifications must be in writing
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QUESTIONS?
VDEM - FEMA
Financial Management Grants/Cooperative
Agreements
Grants Management Branch
FEMA Region 3
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Basics of Financial Management
Accounting system with detailed chart of accounts
Proper documentation of expenditures
Appropriate time and activity reporting
Procedures to ensure costs are allowable
Written cost allocation plan
Regular review of budget to actual expenses
Strong system of internal controls
Written policies and procedures
Risk-based monitoring
Effective program management
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Your Guide to Financial Management
44 Code of Federal Regulations Part 13
A-21 Cost Principles for Educational Institutions
A-87 Cost Principles for State, Local, and Indian Tribal Governments
A-102 Grants and Cooperative Agreements with State and Local Governments
A-110 Uniform Administrative Requirements for Grants and Agreements with Institutions of Higher Education, Hospitals, and Other Non-Profit Organizations
A-122 Cost Principles for Non-Profit Organizations
A-133 Audits of State, Local, Governments, and Non-Profit Organizations
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Financial Management Systems
Standards contained in 44 CFR 13.20
State funding recipients must follow State laws and procedures Allow for accurate, current, and complete disclosure of financial results Maintain records that adequately identify source and application of funds Maintain effective internal control and accountability Adequately safeguard all property Compare actual expenditures or outlays with budgeted amounts
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Financial Management Systems
Federal Funding Recipients Must: Ensure that applicable OMB cost principles and
terms of award are followed
Maintain accounting records supported by source documentation
Implement procedures for minimizing time elapsing between transfer and disbursementof funds
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Revised Grant Guidelines
Federal Grant Guidelines
UniversitiesStates, Local, Indian Tribal Governments
Non-Profits Hospitals
Administrative Requirements
§ 45 CFR 2543§ 2 CFR 215
(formerly A-110)
§ 45 CFR 2541 OMB A-102
§ 45 CFR 2543§ 2 CFR 215
(formerly A-110)
§ 45 CFR 2543§ 2 CFR 215 (formerly A-
110)
Cost Principles § 2 CFR 220 (formerly A-21)
§ 2 CFR 225 (formerly A-87)
§ 2 CFR 230 (formerly A-122)
§ 45 CFR 74 (HHS
regulations)
Audit Requirements *
OMB A-133 OMB A-133 OMB A-133 OMB A-133
Notes:CFR = Code of Federal Regulations* = Organization is subject to A-133 if it expends more than $500,000 in Federal funds in its fiscal year
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Cost Principles
Guidance for determining the allowable costs incurred by organizations
Federal awards bear their fair share of costs
Guidance about reimbursement requirements
Uniform standards of allowability and allocation
Consistency of treatment of costs
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Allowable Costs 44 CFR 13.22 specifies requirements for allowable
costs
OMB Circular A-87 contains Federal principles for determining cost allowability
Standards of Allowability
•Reasonable
•Necessary
•Allocable (Assignable)
•Authorized and legal
•Within cost limits
•Treated consistently
•Meets Cost Accounting Principles and Standards
•Not double charged
•Well documented
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Reasonable
A cost is reasonable if, in its nature or amount, it does not exceed that which would be incurred by a prudent person under the circumstances prevailing at the time the decision was made to incur the costs
Examples of costs described in OMB Circular A-87:= Compensation / Materials / Equipment / Monitoring
•Advertising and public relations costs •Memberships, subscriptions, and professional activity costs•Recruiting costs•Rental costs•Training and education costs•Travel costs
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A-87 Highlights
•Comingling of federal awards not permitted
•Composition of Costs
•No universal rule for classifying costs as direct/indirect under every accounting system
•Indirect Costs
•Common and joint purpose benefitting more than one cost objective - eg. goods, services, facilities
•Cannot apply if assigned for any other purpose as direct
•Interagency Services
•May calculate actual indirect
•Flat 10% standard for direct salary & wages
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Payment Methods
May be made in advance or as reimbursement For advance payments, Grant funding recipient
must minimize time elapsing between transfer and expenditure of funds
Any interest earned on advances must be refunded to FEMA
Two mechanisms for payments:
1. HHS Smartlink System
2. Direct Deposit/Electronic Funds Transfer (DD/EFT)
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Non-Federal Audits
Must follow requirements of44 CFR 13.26 and revised OMB Circular A-133
Audits must be by independent auditor
Audits must be in accordance with generally accepted government financial auditing standards
Auditor procurement must meet requirements of 44 CFR 13.36
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Program Changes
44 CFR 13.30 and OMB CircularA-87 specify conditions requiring prior FEMA approval
A recipient may rebudget within approved direct cost budget to meet unanticipated requirements and make limited changes
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Program Changes
Federal funding recipients should obtain prior FEMA approval for:
Some transfers of funds between total direct cost categories
Revision resulting in need for additional funding
Transfer of funds allotted for training Revision of scope/objective of project Changes in key persons Subcontracting Transfer of funds to other agencies
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Equipment and Supplies
Equipment: useful life of more than 1 year and an acquisition cost of $5,000 or more per unit
Supplies: all tangible property other than equipment
Use and disposition requirements contained in 44 CFR 13.32 (equipment) and 44 CFR 13.33 (supplies)
Must compensate FEMA for residual inventory of supplies exceeding $5,000 in total aggregate fair market value
In general, agreements will not be used to purchase equipment or supplies
Exceptions must be specified in Cooperative Agreement
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Equipment and Supplies
States must use, manage, and dispose of equipment in accordance with State laws and procedures
Local and regional must: Use equipment for intended project Maintain property records and conduct biennial
physical inventory Maintain adequate maintenance procedures Retain or sell when no longer needed
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Procurement of Contractors
Requirements for procurement specified in 44 CFR 13.36
State agencies must follow the same policies and
procedures used for procurements from their non-Federal funds
Requirements for local andregional agencies at 44 CFR 13.36(b) through (i)
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Monitoring and Reporting Program Performance
Requirements specified in44 CFR 13.40
Performance reports due 30 daysafter end of each quarter
Final performance reports due 90 days after close of agreement
Significant events reported immediately
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Financial Reporting
Reporting requirements specifiedat 44 CFR 13.41
Must submit Financial Status Report to FEMA Regional Office within 30 days after end of each quarter
Final financial reports due 90 days after close of agreement
HHS Smartlink users should also submit PMS 272 report
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Useful LinksGrant Regulations
http://www.cns.gov/for_organizations/manage/index.asp
OMB Circulars
http://www.whitehouse.gov/omb/circulars
Federal Register (Code of Federal Regulations)
http://www.gpoaccess.gov/fr/index.html
Resource Center (My Improvement Plan)
http://www.nationalserviceresources.org
ECourses: Key Concepts of Financial Management & Budgeting (for each stream of service)
http://nationalserviceresources.org/resources/courses/financial_management.php