public assistance eligibility & grants management 2 - 1 fema public assistance program fema...

Public Assistance Eligibility & Grants Management 2 - 1

FEMA Public Assistance Program

FEMA Region III – Philadelphia

Will Blair

Senior Emergency Management Program Specialist

[email protected]

(215) 931-5576

mailto:[email protected]


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.


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


COST

PA Guide 0

Types of Direct Costs:

Force Account (your resources):LaborEquipmentMaterials

Contract Costs (outside resources)


CONTRACT

ELIGIBILITY


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


COSTCONTRACTS

DOCUMENTATION!

DOCUMENTATION!

DOCUMENTATION!

To include:Procurement ProcessRationale – Selections/DecisionsProcesses, inspections, payment, etc.


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


COSTCONTRACTS

Cost or price analysis

Required for ALL procurement actions Including amendments/change orders

Tests REASONABLENESS

Independent estimates



COSTCONTRACTS

Accepted Procurement Methods:

Small Purchase

Sealed Bid

Competitive proposals

Non-competitive proposals



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


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


NOT ELIGIBLE

Cost plus a percentage of contracts

Piggyback Contracting – not competitive / price structure may vary

Contingency

COSTProcurement of Contracts



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


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


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)


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


QUESTIONS?

VDEM - FEMA

Financial Management Grants/Cooperative

Agreements

Grants Management Branch

FEMA Region 3


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


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


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


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


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


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


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


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


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


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)


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


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


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


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


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


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)


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


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


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

QUESTIONS

Joe Liciardello

Grants Management Branch

FEMA Region III

215-931-5574

[email protected]

public assistance eligibility & grants management 2 - 1 fema public assistance program fema...

Documents

cost contracts cost

contract eligibility

supplemental assistance

cost pa guide page

eligible cost

cost contracts documentation

competition pa guide

types of contracts fema