Getting to Know EDGAR Getting to Know EDGAR and His Financial Rules and and His Financial Rules and

Regulations Regulations

Lanor CuroleLanor Curole

United Houma Nation United Houma Nation VRSVRS

CANAR 2012CANAR 2012

What is EDGAR?What is EDGAR?

EEducationducation DDepartmentepartment GGeneraleneral AAdministrativedministrative RRegulationsegulations Purpose: Purpose: “Establishes uniform “Establishes uniform

administrative requirements for Federal administrative requirements for Federal grants and agreements awarded”grants and agreements awarded”

EDGAR’s DesignEDGAR’s Design Part 74 – Administrative of Grants and Part 74 – Administrative of Grants and

Agreements with Institutions of Higher Education, Agreements with Institutions of Higher Education, Hospitals, and Other Non-Profit OrganizationsHospitals, and Other Non-Profit Organizations

Part 75 – Direct Grant ProgramsPart 75 – Direct Grant Programs Part 76 – State-Administered ProgramsPart 76 – State-Administered Programs Part 77 – Definitions that Apply to Department Part 77 – Definitions that Apply to Department

RegulationsRegulations Part 79 – Intergovernmental Review of Part 79 – Intergovernmental Review of

Department of Education Programs and ActivitiesDepartment of Education Programs and Activities Part 80 – Uniform Administrative Part 80 – Uniform Administrative

Requirements for Grants and Cooperative Requirements for Grants and Cooperative Agreements to State and Local Agreements to State and Local GovernmentsGovernments

Part 81 – General Education Provisions Act – Part 81 – General Education Provisions Act – EnforcementEnforcement

Part 82 – New Restrictions on LobbyingPart 82 – New Restrictions on Lobbying

EDGAR’s DesignEDGAR’s Design

Part 84 – Governmentwide Requirements for Part 84 – Governmentwide Requirements for Drug-Free Workplace (Financial Assistance)Drug-Free Workplace (Financial Assistance)

Part 85 – Governmentwide Debarment and Part 85 – Governmentwide Debarment and Suspension (Nonprocurement)Suspension (Nonprocurement)

Part 86 – Drug and Alcohol Abuse PreventionPart 86 – Drug and Alcohol Abuse Prevention Part 97 – Protection of Human SubjectsPart 97 – Protection of Human Subjects Part 98 – Student Rights in Research, Part 98 – Student Rights in Research,

Experimental Programs and TestingExperimental Programs and Testing Part 99 – Family Educational Rights and Part 99 – Family Educational Rights and

PrivacyPrivacy AppendicesAppendices

Part 75 – Direct Grant ProgramsPart 75 – Direct Grant Programs Subpart A – GeneralSubpart A – General Subpart B – [Reserved]Subpart B – [Reserved] Subpart C – How to Apply for a GrantSubpart C – How to Apply for a Grant Subpart D – How Grants are MadeSubpart D – How Grants are Made

75.261 Extension of a Project Period75.261 Extension of a Project Period Subpart E – What Conditions Must Be Met By a Subpart E – What Conditions Must Be Met By a

Grantee?Grantee? NondiscriminationNondiscrimination Project StaffProject Staff Conflict of InterestConflict of Interest Allowable Costs (referred to 80.22, OMB Circular A-87/2 CFR Allowable Costs (referred to 80.22, OMB Circular A-87/2 CFR

225)225) Indirect Costs RatesIndirect Costs Rates EvaluationEvaluation Construction (non-construction grants)Construction (non-construction grants) Equipment and SuppliesEquipment and Supplies Publications and CopyrightsPublications and Copyrights Inventions and PatentsInventions and Patents

Part 75 – Direct Grant ProgramsPart 75 – Direct Grant Programs

Subpart F – What are the Administrative Subpart F – What are the Administrative Responsibilities of a Grantee?Responsibilities of a Grantee?

Subpart G – What Procedures Does the Subpart G – What Procedures Does the Department Use to Get Compliance?Department Use to Get Compliance? 75.900 Waiver of regulations prohibited75.900 Waiver of regulations prohibited 75.901 Suspensions and terminations75.901 Suspensions and terminations 75.903 Effective date of termination75.903 Effective date of termination 75.910 Cooperation with audits (federally 75.910 Cooperation with audits (federally

instigated)instigated)

Part 80 – Uniform Administrative Requirements Part 80 – Uniform Administrative Requirements for Grants and Cooperative Agreements to for Grants and Cooperative Agreements to

State and Local GovernmentsState and Local Governments

Subpart A – GeneralSubpart A – General 80.3 Definitions80.3 Definitions

Subpart B - Pre-Award RequirementsSubpart B - Pre-Award Requirements 80.12 Special grant or subgrant 80.12 Special grant or subgrant

conditions for “high risk” granteesconditions for “high risk” grantees Subpart D – After-the-Grant RequirementsSubpart D – After-the-Grant Requirements

80.50 Closeout80.50 Closeout 80.51 Later disallowances and adjustments80.51 Later disallowances and adjustments

Subpart C – Post Award RequirementsSubpart C – Post Award Requirements

80.20 Standards for financial management system80.20 Standards for financial management system 80.22 Allowable costs80.22 Allowable costs 80.26 Non-Federal audit80.26 Non-Federal audit 80.30 Changes (c-budget changes, d-80.30 Changes (c-budget changes, d-

programmatic changes)programmatic changes) 80.31 Real Property80.31 Real Property 80.34 Copyrights80.34 Copyrights 80.36 Procurement80.36 Procurement 80.42 Retention and access requirements for 80.42 Retention and access requirements for

recordsrecords

Terminology: AllocableTerminology: Allocable 3. Allocable costs.3. Allocable costs. a. A cost is allocable to a particular cost a. A cost is allocable to a particular cost

objective if the goods or services involved are objective if the goods or services involved are chargeable or assignable to such cost objective chargeable or assignable to such cost objective in accordance with relative benefits received.in accordance with relative benefits received.

b. All activities which benefit from the b. All activities which benefit from the governmental unit’s indirect cost, including governmental unit’s indirect cost, including unallowable activities and services donated to unallowable activities and services donated to the governmental unit by third parties, will the governmental unit by third parties, will receive an appropriate allocation of indirect receive an appropriate allocation of indirect costs.costs.

Terminology: AllocableTerminology: Allocable c. Any cost allocable to a particular Federal award or c. Any cost allocable to a particular Federal award or

cost objective under the principles provided for in 2 CFR cost objective under the principles provided for in 2 CFR part 225 may not be charged to other Federal awards to part 225 may not be charged to other Federal awards to overcome fund deficiencies, to avoid restrictions overcome fund deficiencies, to avoid restrictions imposed by law or terms of the Federal awards, or for imposed by law or terms of the Federal awards, or for other reasons.other reasons.

d. Where an accumulation of indirect costs will d. Where an accumulation of indirect costs will ultimately result in charges to a Federal award, a cost ultimately result in charges to a Federal award, a cost allocation plan will be required as described in allocation plan will be required as described in Appendices C, D, and E to this part.Appendices C, D, and E to this part.

A cost that can be assigned or charged to one or more A cost that can be assigned or charged to one or more activities or items (cost objects) on the basis of benefits activities or items (cost objects) on the basis of benefits received or other such equitable or logical association, received or other such equitable or logical association, although a direct (causal) relationship may not be although a direct (causal) relationship may not be established. Also referred to as allocability. established. Also referred to as allocability. (businessdictionary.com)(businessdictionary.com)

Terminology: AllowableTerminology: Allowable To be allowable under Federal awards, costs must To be allowable under Federal awards, costs must

meet the following general criteria:meet the following general criteria: a. Be necessary and reasonable for proper and a. Be necessary and reasonable for proper and

efficient performance and administration of Federal efficient performance and administration of Federal awards.awards.

b. Be allocable to Federal awards under the provisions b. Be allocable to Federal awards under the provisions of 2 CFR part 225.of 2 CFR part 225.

c. Be authorized or not prohibited under State or local c. Be authorized or not prohibited under State or local laws or regulations.laws or regulations.

d. Conform to any limitations or exclusions set forth in d. Conform to any limitations or exclusions set forth in these principles, Federal laws, terms and conditions of these principles, Federal laws, terms and conditions of the Federal award, or other governing regulations as the Federal award, or other governing regulations as to types or amounts of cost items.to types or amounts of cost items.

Terminology: AllowableTerminology: Allowable e. Be consistent with policies, regulations, and e. Be consistent with policies, regulations, and

procedures that apply uniformly to both Federal procedures that apply uniformly to both Federal awards and other activities of the governmental awards and other activities of the governmental unit.unit.

f. Be accorded consistent treatment. A cost may not f. Be accorded consistent treatment. A cost may not be assigned to a Federal award as a direct cost if be assigned to a Federal award as a direct cost if any other cost incurred for the same purpose in like any other cost incurred for the same purpose in like circumstances has been allocated to the Federal circumstances has been allocated to the Federal award as an indirect cost.award as an indirect cost.

g. Except as otherwise provided for in 2 CFR part g. Except as otherwise provided for in 2 CFR part 225, be determined in accordance with generally 225, be determined in accordance with generally accepted accounting principles.accepted accounting principles.

Terminology: AllowableTerminology: Allowable

h. Not be included as a cost or used to meet cost h. Not be included as a cost or used to meet cost sharing or matching requirements of any other sharing or matching requirements of any other Federal award in either the current or a prior Federal award in either the current or a prior period, except as specifically provided by Federal period, except as specifically provided by Federal law or regulation.law or regulation.

i. Be the net of all applicable credits.i. Be the net of all applicable credits. j. Be adequately documented.j. Be adequately documented.

Appendix B to Part 225Appendix B to Part 225 1. Advertising and public relations costs (conditional)1. Advertising and public relations costs (conditional) 2. Advisory councils (conditional – grant/consumer based)2. Advisory councils (conditional – grant/consumer based) 3. Alcoholic beverages (unallowable)3. Alcoholic beverages (unallowable) 4. Audit costs and related services (allowable)4. Audit costs and related services (allowable) 5. Bad debts (unallowable)5. Bad debts (unallowable) 6. Bonding costs (allowable)6. Bonding costs (allowable) 7. Communication costs (allowable)7. Communication costs (allowable) 8. Compensation for personal services (conditional)8. Compensation for personal services (conditional) 9. Contingency provisions (unallowable)9. Contingency provisions (unallowable) 10. Defense and prosecution of criminal and civil 10. Defense and prosecution of criminal and civil

proceedings, and claims (unallowable)proceedings, and claims (unallowable) 11. Depreciation and use allowances (directive)11. Depreciation and use allowances (directive)

Appendix B to Part 225Appendix B to Part 225 12. Donations and contributions (unallowable)12. Donations and contributions (unallowable) 13. Employee morale, health, and welfare costs 13. Employee morale, health, and welfare costs

(allowable)(allowable) 14. Entertainment costs (unallowable)14. Entertainment costs (unallowable) 15. Equipment and other capital expenditures 15. Equipment and other capital expenditures

(conditional)(conditional) 16. Fines and penalties (unallowable)16. Fines and penalties (unallowable) 17. Fund raising and investment management costs 17. Fund raising and investment management costs

(unallowable)(unallowable) 18. Gains and losses on disposition of depreciable 18. Gains and losses on disposition of depreciable

property and other capital assets and substantial property and other capital assets and substantial relocation of Federal programs (directive)relocation of Federal programs (directive)

19. General government expenses (generally unallowable)19. General government expenses (generally unallowable) 20. Goods or services for personal use (unallowable)20. Goods or services for personal use (unallowable)

Appendix B to Part 225Appendix B to Part 225

21. Idle facilities and idle capacity (conditional)21. Idle facilities and idle capacity (conditional) 22. Insurance and indemnification (conditional)22. Insurance and indemnification (conditional) 23. Interest (unallowable)23. Interest (unallowable) 24. Lobbying (unallowable)24. Lobbying (unallowable) 25. Maintenance, operations, and repairs 25. Maintenance, operations, and repairs

(allowable)(allowable) 26. Materials and supplies costs (allowable)26. Materials and supplies costs (allowable) 27. Meetings and conferences (allowable)27. Meetings and conferences (allowable) 28. Memberships, subscriptions, and professional 28. Memberships, subscriptions, and professional

activity costs (allowable)activity costs (allowable) 29. Patent costs (conditional)29. Patent costs (conditional)

Appendix B to Part 225Appendix B to Part 225 30. Plant and homeland security costs (allowable)30. Plant and homeland security costs (allowable) 31. Pre-award costs (conditional)31. Pre-award costs (conditional) 32. Professional service costs (conditional)32. Professional service costs (conditional) 33. Proposal costs (allowable only as indirect costs)33. Proposal costs (allowable only as indirect costs) 34. Publication and printing costs (allowable if 34. Publication and printing costs (allowable if

budgeted)budgeted) 35. Rearrangement and alteration costs (allowable 35. Rearrangement and alteration costs (allowable

with approval)with approval) 36. Reconversion costs (allowable)36. Reconversion costs (allowable) 37. Rental costs of building and equipment (allowable)37. Rental costs of building and equipment (allowable) 38. Royalties and other costs for the use of patents 38. Royalties and other costs for the use of patents

(conditional)(conditional) 39. Selling and marketing (unallowable)39. Selling and marketing (unallowable)

Appendix B to Part 225Appendix B to Part 225

40. Taxes (allowable)40. Taxes (allowable) 41. Termination costs applicable to 41. Termination costs applicable to

sponsored agreements (conditional)sponsored agreements (conditional) 42. Training costs (allowable)42. Training costs (allowable) 43. Travel costs (directive)43. Travel costs (directive)

The BIG 121 Unallowables:The BIG 121 Unallowables: AIVR Funds are considered Non-construction GrantsAIVR Funds are considered Non-construction Grants Use of funds for religion (EDGAR Part 75) not to include Native Use of funds for religion (EDGAR Part 75) not to include Native

HealingHealing Bad debts (2 CFR 225)Bad debts (2 CFR 225) Consumer compensation (pay) cannot be incurred as a direct Consumer compensation (pay) cannot be incurred as a direct

expense of the program (contract OJT and Work Experience to expense of the program (contract OJT and Work Experience to a 3a 3rdrd Party that is qualified to provide the service) Party that is qualified to provide the service)

Stipends (terminology)Stipends (terminology) Maintenance services (consumer living expenses such as food Maintenance services (consumer living expenses such as food

and shelter costs) should only be paid if the individual’s plan and shelter costs) should only be paid if the individual’s plan for employment causes or exasperates the expense for employment causes or exasperates the expense

All individualized consumer services, except evaluation and All individualized consumer services, except evaluation and assessments, assessments, mustmust be included in an IPE before being incurred be included in an IPE before being incurred

Expenses incurred before an IPE was developed cannot be Expenses incurred before an IPE was developed cannot be paid (no paying existing bills prior to the IPE)paid (no paying existing bills prior to the IPE)

Terminology: ReasonableTerminology: Reasonable 2. Reasonable costs. A cost is reasonable if, in its 2. Reasonable costs. A cost is reasonable if, in its

nature and amount, it does not exceed that which nature and amount, it does not exceed that which would be incurred by a prudent person under the would be incurred by a prudent person under the circumstances prevailing at the time the decision was circumstances prevailing at the time the decision was made to incur the cost. The question of reasonableness made to incur the cost. The question of reasonableness is particularly important when governmental units or is particularly important when governmental units or components are predominately federally-funded. In components are predominately federally-funded. In determining reasonableness of a given cost, determining reasonableness of a given cost, consideration shall be given to:consideration shall be given to:

a. Whether the cost is of a type generally recognized as a. Whether the cost is of a type generally recognized as ordinary and necessary for the operation of the ordinary and necessary for the operation of the governmental unit or the performance of the Federal governmental unit or the performance of the Federal award.award.

Terminology: ReasonableTerminology: Reasonable b. The restraints or requirements imposed by such b. The restraints or requirements imposed by such

factors as: Sound business practices; arm’s-length factors as: Sound business practices; arm’s-length bargaining; Federal, State and other laws and bargaining; Federal, State and other laws and regulations; and, terms and conditions of the Federal regulations; and, terms and conditions of the Federal award.award.

c. Market prices for comparable goods or services.c. Market prices for comparable goods or services. d. Whether the individuals concerned acted with d. Whether the individuals concerned acted with

prudence in the circumstances considering their prudence in the circumstances considering their responsibilities to the governmental unit, its employees, responsibilities to the governmental unit, its employees, the public at large, and the Federal Government.the public at large, and the Federal Government.

e. Significant deviations from the established practices e. Significant deviations from the established practices of the governmental unit which may unjustifiably of the governmental unit which may unjustifiably increase the Federal award’s cost.increase the Federal award’s cost.

Allocable, Allowable and Allocable, Allowable and Reasonable?Reasonable?

Scenario 1: Tim has been a model consumer Scenario 1: Tim has been a model consumer dedicated, kind, hardworking and fallen on hard dedicated, kind, hardworking and fallen on hard times. His employment goal is to become a CDL times. His employment goal is to become a CDL licensed truck driver. He needs help in getting licensed truck driver. He needs help in getting his driver’s license as he let it lapse 10 years ago. his driver’s license as he let it lapse 10 years ago. There is a flag on his record for not turning in a There is a flag on his record for not turning in a license plate on a previous vehicle. The penalty license plate on a previous vehicle. The penalty has grown to $750. The license renewal fee is has grown to $750. The license renewal fee is $100. Tim needs his license before he can take $100. Tim needs his license before he can take the CDL course that is $1,200.the CDL course that is $1,200.

What can’t you pay?What can’t you pay? What can you pay?What can you pay?

Allocable, Allowable and Allocable, Allowable and Reasonable?Reasonable?

Scenario 2: Suzy has been a consumer for 2 Scenario 2: Suzy has been a consumer for 2 years, but doesn’t attend appointments as years, but doesn’t attend appointments as scheduled and tends to disappear at times and scheduled and tends to disappear at times and the Counselor has not been able to develop an the Counselor has not been able to develop an IPE because of this problem. Suzy shows up IPE because of this problem. Suzy shows up today with a fee slip to the local community today with a fee slip to the local community college stating that she enrolled and wants VR to college stating that she enrolled and wants VR to pay the bill.pay the bill.

Can her tuition be paid right now?Can her tuition be paid right now? Can her tuition potentially be paid in the future?Can her tuition potentially be paid in the future? How do you get Suzy on track so that you don’t How do you get Suzy on track so that you don’t

violate any regulations?violate any regulations?

Allocable, Allowable and Allocable, Allowable and Reasonable?Reasonable?

Scenario 3: The Director receives an email from Scenario 3: The Director receives an email from the Tribal Administrator stating that the Tribe is the Tribal Administrator stating that the Tribe is experiencing budget cuts and in order to experiencing budget cuts and in order to maintain administrative funding levels, all maintain administrative funding levels, all programs are being required to contribute 3% of programs are being required to contribute 3% of their budget to support the pay of the Tribal their budget to support the pay of the Tribal Council and administrative staff above and Council and administrative staff above and beyond the indirect cost rates.beyond the indirect cost rates.

Is this allocable?Is this allocable? Is this allowable?Is this allowable? Is this reasonable?Is this reasonable?

Allocable, Allowable and Allocable, Allowable and Reasonable?Reasonable?

Scenario 4: Jimmy is interested in becoming Scenario 4: Jimmy is interested in becoming employed with the local sheriff’s office processing employed with the local sheriff’s office processing arrest reports. He has always worked in blue collar arrest reports. He has always worked in blue collar work and has no office experience. The local work and has no office experience. The local sheriff’s office is willing to work with Jimmy for 3 sheriff’s office is willing to work with Jimmy for 3 months on an OJT. The Counselor arranges for the months on an OJT. The Counselor arranges for the Sheriff’s Office to hire Jimmy during this time frame Sheriff’s Office to hire Jimmy during this time frame and the program will reimburse them at 1 ½ times and the program will reimburse them at 1 ½ times Jimmy’s pay for the training services.Jimmy’s pay for the training services.

Is this allocable, allowable and reasonable?Is this allocable, allowable and reasonable? What would another alternative be if the Sheriff’s What would another alternative be if the Sheriff’s

Office wasn’t willing to be the provider?Office wasn’t willing to be the provider?

Your Scenario???Your Scenario???

Thank You!Thank You!

Lanor Curole, DirectorLanor Curole, Director

United Houma Nation Vocational Rehabilitation United Houma Nation Vocational Rehabilitation ServiceService

(985)223-3093(985)223-3093

lanor@unitedhoumanation.orglanor@unitedhoumanation.org