updates and changes for the small business development center program us sba office of small...

US SBA OFFICE OF SMALL BUSINESS DEVELOPMENT CENTERS

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OMB OMNI CIRCULARUpdates and Changes for the

Small Business Development Center Program


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Welcome! Presentation and questions are being

recorded Training session will be available online Presenters:

◦ Nick Walker, Financial Examiner◦ Aaron Matthew Arnwine, Grants Management Specialist◦ Brian McDonald, Program Manager◦ Nancy Gilbert, Program Manager

Introduction


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Topics◦ Documentation, Crosswalks◦ Notice of Award Changes◦ Policy Changes◦ Definition Changes◦ Uniform Administrative Requirements Changes◦ Cost Principles Changes◦ Audit Requirements Changes

Website: http://www.whitehouse.gov/omb/grants_docs/

Email address for OMNI Circular questions:[email protected]

Introduction (cont)

http://www.whitehouse.gov/omb/grants_docs/

mailto:[email protected]


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[ ˌintərˈlinēər ] adjective written or printed between the lines of a

text having the same text in different languages

printed on alternate lines.

Interlinear


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2015 Notice of Award (Cooperative Agreement)◦ The Notice of Award (NOA) is the legal document

issued to notify the grantee that an award has been made and that funds may be requested from the designated SBA payment system or office.

◦ The NOA will include the amount of funds authorized for obligation by the grantee, the applicable terms and conditions of the award, and any restrictions on the use of funds, as well as other details of the award.

Documents


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The Council on Financial Assistance Reform (https://cfo.gov/cofar/) issues guidance on Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards.

◦ Uniform Guidance Crosswalk from Existing Guidance to Final Guidance (highlights policy changes, clarifications and updates to policy provisions)

◦ Definitions Comparison Chart◦ Administrative Requirements Comparison Chart◦ Cost Principles Comparison Chart◦ Audit Requirements Comparison Chart

Documents (cont)

https://cfo.gov/cofar/


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Only one NOA for the program year NOTICE (NOA page 5): details changes to

NOA that occur after December 26, 2014

Notice of Award Changes


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Circular citations include both old and new circular; new circular parenthetically (NOA page 8, example)

Payment (NOA page 18): SBA will not process payment requests submitted after 90 days of the end of the award period

Notice of Award Changes (cont)


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Certifications◦ All annual financial reporting and each payment

requests must be certified by official who can legally bind the organization

◦ The certification must read as follows:“By signing this report, I certify to the best of my knowledge and believe that the report is true, complete, and accurate, and the expenditures, disbursements, and cash receipts are for the purposes and objectives set forth in the terms and conditions of the Federal Award. I am aware that any false, fictitious, or fraudulent information, or the omission of any material fact, may subject me to criminal, civil or administrative penalties for fraud, false statements, false claims, or otherwise (U.S. Code Title 18, Section 1001 and Title 31, Sections 3729-3730 and 3801-3812).”



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◦ Expectation is that OMB will incorporate this certification language in future versions of required forms

◦ Until then, certification can be done on separate sheet of paper accompanying each payment request and annual financial reporting (no payments will be made without this certification)

◦ Existing certification lines on forms are insufficient, this new language must accompany annual financial reports and payment requests



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Sidebar: changes in NOA not resulting from OMNI Circular◦ Revised SBA monitoring provisions that include a

OSBDC mid-year financial reconciliation (NOA page 11) incorporating a demonstration of 1-to-1 match on the SBDC’s Request for Advance or Reimbursement (SF 270 line f) when requesting payment (NOA pages18 and 19).

◦ New Section: Financial Examinations, Program Reviews and Accreditation on NOA page 23.



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No more multi-year proposals 200.208 Certifications and Representations

requires all certifications and representations be submitted at least annually, thus negating the purpose of multi-year proposals

Policy Changes


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Transfer of Funds among Cost Categories◦ Portable Assistance Grants only◦ Where the Federal share of an award exceeds the

Simplified Acquisition Threshold, currently $150,000, a Federal awarding agency may require prior approval for transfers of funds among direct cost categories where the cumulative amount of such transfers exceeds 10% of the total approved budget.

◦ This creates an inference that Federal awarding agencies may not require prior approval for transfers of funds among direct cost categories where the Federal share of the award is less than $150,000.

Policy Changes (cont)


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Contracting with Small Businesses

2 CFR Section 200.321 now requires that recipients must take all necessary affirmative steps to assure that small businesses, minority-owned businesses, women-owned businesses, and businesses located in high unemployment areas are used as contractors when possible.



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Prior Approval◦ 2 CFR Section 200.407 lists situations that require

recipients to obtain prior written approval before taking certain actions.

◦ SBA specific prior approval supplements this list. Membership Costs

◦ Costs of membership in civic or community organizations are expressly allowable under 2 CFR Section 200.454.

◦ Previously, claims for such costs were subject to prior approval.

◦ Still must provide statement on why membership is necessary to program.



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Reporting

2 CFR Sections 200.327 and 200.328 now give agencies authority to require recipients to report more frequently that quarterly in those circumstances where it is necessary for the effective monitoring of an award or where program outcomes could be significantly affected.



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COFAR Definitions Comparison Chart – OMB Final Uniform Guidance Appendix I shows cross reference to definitions in: ◦ 2 CFR Part 215 (A-110) ◦ 45 CFR Part 92 (A-102) ◦ 2 CFR Part 220 (A-21) ◦ 2 CFR Part 230 (A-122) ◦ 2 CFR Part 225 (A-87), A-89, and A-133

Definitions Comparison Crosswalk


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Find COFAR Definitions Crosswalk on OMB website at: http://www.whitehouse.gov/sites/default/files/omb/fedreg/2013/uniform-guidance-definitions-text-comparison.pdf ◦ Alphabetical cross reference to definition in prior

circular or CFR parts. ◦ 76 pages, electronic, searchable ( 476 kb)

Definitions Comparison Crosswalk (cont)

http://www.whitehouse.gov/sites/default/files/omb/fedreg/2013/uniform-guidance-definitions-text-comparison.pdf




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Definitions are specific to OMNI Circular. Different definitions may be found in

Federal statutes or regulations that apply more specifically to particular programs or activities.

These definitions could be supplemented by additional instructional information provided in government-wide standard information collections.



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Definitions specific to SBDC Program can still be found in program regulations at 2 CFR 13 §130.110, e.g.◦ Cash Match◦ Program Income◦ Program Manager & Project Officer ◦ SBDC Director◦ SBDC Service Providers



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In some cases, SBA offers supplemental guidance for application of OMB definitions in 2 CFR §200.1 to specific programs. See:◦ 2 CFR Part 2701 (Administrative Requirements,

Cost Principles and Audit Requirements for SBA Awards), Subpart A

◦ Regulations governing the operation of SBA’s individual programs, such as for the SBDC program at 13 CFR Part 130.100



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Supplies – clarified (example)◦ 200.94 Supplies – definition clarified to

specifically INCLUDE computing devices as tangible personal property to be treated as supplies.

◦ SBDCs should not include costs for computers, peripherals or software whose acquisition cost is less than $5,000 under Equipment. If we see these costs in the wrong place, we will ask you to revise the budget documents.



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For any section of OMB guidance in Subpart A of 2 CFR part 200 that has no corresponding part in SBA’s general regulations at 2 CFR Part 2701, or specific program regulations, then SBA policies and procedures are those in the OMB guidance.



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Administrative Requirements Comparison Chart – 2 CFR Part 215, Circular A-102, and the Final Uniform Guidance Subchapters A-E

Found online: http://www.whitehouse.gov/sites/default/files/omb/fedreg/2013/uniform_guidance_administrative_requirements_text_comparison.pdf

Interlinear Crosswalk, 127 pages, 1.09MB

Uniform Administrative Requirements Crosswalk

http://www.whitehouse.gov/sites/default/files/omb/fedreg/2013/uniform_guidance_administrative_requirements_text_comparison.pdf





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Unifies administrative requirements for Higher Education and State Government

All SBDC program hosts will now operate under same guidance

Uniform Administrative Requirements Crosswalk (cont)


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Notable changes:◦ 200.203 Notice of Funding Opportunities – program

announcement will be open on grants.gov for at least 60 days

◦ 200.208 Certifications and Representations – again, no more multi-year proposals

◦ 200.343 Closeout Unless the Federal awarding agency or pass-through entity authorizes an extension, a non-Federal entity must liquidate all obligations incurred under the Federal award not later than 90 calendar days after the end date of the period of performance as specified in the terms and conditions of the Federal award.



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2 CFR CHAPTER II PART 200 - - “Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards,” SUBPART E - Cost Principles APPENDICES III-VIII: Cost Principles,Reforms to Cost Principles (Circulars A-21, A-87, and A-122)

Found online: http://www.whitehouse.gov/sites/default/files/omb/fedreg/2013/uniform-guidance-cost-principles-requirements-text-comparison.pdf

Interlinear Crosswalk, 174 pages, 1.62MB

Cost Principles Crosswalk

http://www.whitehouse.gov/sites/default/files/omb/fedreg/2013/uniform-guidance-cost-principles-requirements-text-comparison.pdf




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The Cost Principles comparison chart is very similar to the others. The New OMNI Circular is in the last column.

Appendix A in the old circulars was the section on Cost principles is now Subpart E

The section you were most familiar with was Appendix B Selected Items of Cost is part 200.420.

This is where the format changes.

Cost Principles Crosswalk (cont)


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Significant Changes in the Cost Principles◦ Indirect Cost Rates ◦ Compensation – Personal Services (time &

attendance)◦ Family Friendly Policies◦ Support for Shared Services



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200.415 - Required Certifications◦Presented earlier◦Signed by official who can legally bind organization

◦Penalties under the False Claims Act



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200.414 - Indirect (F&A) Costs◦Federal acceptance of approved IDC rate(s)◦New de minimis rate of 10% for institutions

without a cognizant agency and has never had a rate agreement

◦One time extension of up to 4 years 200.407 - Prior Written Approval

Provides a one-stop comprehensive list of the circumstances under which non-Federal entities should seek prior approval from the Federal awarding agency.



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Selected Items of Cost◦ Begins on page 41◦ Provides list of types of costs and whether they

are allowable◦ Changes that apply to the SBDC program:

200.430 – Compensation – Personal Services Strengthen Internal Controls Removed Examples Previously time and effort reporting



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Changes that apply to the SBDC program (cont): 200.434 - Contributions and Donations

No major changes – language is strengthened to align with Cost Sharing Section 200.306

200.438 – Entertainment Costs Unallowable unless Those costs have a programmatic purpose and are authorized in the

approved budget for the federal award, or Those costs have prior written approval from the federal awarding

agency 200.441 – Fines, Penalties, Damages and Other Settlements

Includes Tribal law violations Includes “alleged violations” and not just “violations” are unallowable

except when they result directly from complying with the terms of a Federal award or are approved in advance by the Federal awarding agency.



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◦Changes that apply to the SBDC program (cont) 200.453 – Materials and Supplies Costs, Including Costs

of Computing Devices Paragraph (c) May be charged direct Definition of Computing Devices 200.20 Definition of Supplies 200.94

200.455 - Organization Costs - Now unallowable to all organizations unless specific approval by the awarding federal agency

200.463 – Recruiting CostsParagraph (b) of Section 200.463 – Recruiting Costs, makes clear that “special emoluments [fees], fringe benefits, and salary allowances” that do not meet the test of reasonableness or do not conform with established practices of the entity are unallowable.



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◦Changes that apply to the SBDC program (cont) 200.464 – Relocation Costs of Employees

Limits the previously unlimited amount of time for which a Federal award may be charged for the costs of an employee’s vacant home to up to six months

200.474 – Travel CostsProvides that temporary dependent care costs that result directly from travel to conferences and meet specified standards are allowable.



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Audit Requirements Comparison Chart◦ 2 Columns: A-133 and New Omni-circular

Found online: http://www.whitehouse.gov/sites/default/files/omb/fedreg/2013/uniform-guidance-audit-requirements-text-comparison.pdf

Interlinear Crosswalk, 46 pages, 731kb

Audit Requirements Crosswalk

http://www.whitehouse.gov/sites/default/files/omb/fedreg/2013/uniform-guidance-audit-requirements-text-comparison.pdf




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Audit Threshold◦ Increases A-133 audit threshold from $500,000 to

$750,000.◦ Maintains oversight over 99.7% of the dollars

currently subject Single Audit and reduces audit burden for approximately 5,000 entities.

Audit Requirements Crosswalk (cont)


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Risk Assessment – Under 2 CFR § 205, Federal awarding agencies are required to have a framework for assessing the risk posed by each grant applicant. This risk assessment may take into account each applicant’s:◦ Financial stability◦ Quality of management systems◦ History of performance◦ Reports and audit findings◦ Ability to effectively implement the applicable statutory,

regulatory, and other requirements There is no action required by each SBDC to develop

the risk assessment. SBA will provide details of the risk assessment in the next Program Announcement.

Audit Requirements Crosswalk (cont)


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Advances SBA’s request for exceptions from OMB

Pending Items


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Dedicated mailbox for questions:[email protected]

This presentation will be made available online for future reference

Professional training is available and can be charged against the grant

OSBDC will continue training with future presentations

Questions?

Out-roduction and Questions

mailto:[email protected]

updates and changes for the small business development center program us sba office of small...

Documents

notice of award noa

designated sba payment

program year notice

example payment noa

new circular new circular

payment requests

existing guidance

administrative penalties