Grant Requirement Reminders

Michigan State PoliceEmergency Management and Homeland Security Division

Ms. Jackie Reese, Audit Unit ManagerMr. Richard Sheaffer, Auditor

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• High risk topics• Grant requirements• Review, monitor and document• Resources

Overview

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High Risk Topics

• Suspension and Debarment• Equipment Inventory• Subrecipient Monitoring• Support for Salaries and Wages• Professional Services

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High Risk Topics (cont.)

• Dual Compensation• Conflict of Interest• Sole Source Procurement• Contract Monitoring

Suspension and Debarment

44 Code of Federal Regulation (CFR) Part 13.35

Grantees and subgrantees must not make any award (subgrant or contract) to any party which is debarred or suspended or is otherwise excluded from or ineligible for participation in Federal assistance programs.

UPDATE:www.epls.gov has been replaced with www.sam.gov.

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Equipment Inventory

44 CFR Part 13.32 (d)(1 & 2)

(1)Property records must be maintained that includes: description of the property, a serial number or other identification number, the source of the property, who holds title, the acquisition date, and cost of the property, percentage of federal participation in the cost of the property, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property.

(2)A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years.

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Subrecipient Monitoring

Office of Management and Budget (OMB) Circular A-133 Section 400 (d)

Identifies pass-through entity responsibilities including:

• Identify Federal awards; advise of rules and regulations; monitor activities; ensure subrecipients meet audit requirements; issue management decision; consider adjustment of records; and ensure access to records.

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Support for Salaries and Wages

2 CFR 225, Appendix B (8) (h) (3)• Where employees are expected to work solely on a

single federal award or cost objective, charges for their salaries and wages will be supported by periodic certifications that the employee worked solely on that program for the period covered by the certification.

• Certification must be signed by employee or direct supervisor and completed at least semi-annually.

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Support for Salaries and Wages (cont.)

2 CFR 225, Appendix B (8) (h) (4)• Where employees work on multiple activities or cost

objectives, a distribution of their salaries or wages will be supported by personnel activity reports or equivalent documentation which meets the standards in subsection (8) (h) (5).

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Support for Salaries and Wages (cont.)

2 CFR 225, Appendix B (8) (h) (5)•Personnel activity reports must meet the following:

○ Must reflect after-the-fact distribution of the activity.○ Must account for the total activity compensated.○ Prepared at least monthly○ Must be signed by the employee

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2 CFR Part 225, Appendix B (32)

• Costs of professional services rendered by persons who are members of a particular profession or posses a special skill, and who are not officers or employees of the governmental unit, are allowable…(Bolding added)

Professional Services

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DHS Grant Guidance

• In no case is dual compensation allowable. That is, an employee of a unit of government may not receive compensation from their unit or agency of government AND from an award for a single period of time (i.e. 1:00 PM to 5:00 PM) even though such work may benefit both activities.

Dual Compensation

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44 CFR Part 13.36 (b) (3)

• Grantees and subgrantees will maintain a written code of standards of conduct governing the performance of their employees engaged in the award and administration of contracts.

Conflict of Interest

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44 CFR Part 13.36 (b) (3)• No employee, officer or agent of the grantee or

subgrantee shall participate in the selection, or in the award or administration of a contract supported by Federal funds if a conflict of interest, real or apparent, would be involved. Such a conflict would arise when: (i) The employee, officer, or agent, (ii) Any member of his immediate family, (iii) His or her partner, or (iv) An organization which employs, or is about to employ, any of the above, has a financial or other interest in the firm selected for award.

Conflict of Interest (cont.)

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44 CFR Part 13.36 (c) (4) (i)• Procurement by non-competitive proposals may be

used only when the award of a contract is infeasible under small purchase procedures, sealed bids, or competitive proposals and one of the following circumstances applies:○ The item is available only from a single source;○ The public exigency or emergency for the requirement will not

permit a delay resulting from competitive solicitation;○ The awarding agency authorizes noncompetitive proposals; or○ After solicitation of a number of sources, competition is

determined inadequate.

Sole Source Procurement

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44 CFR 13.36 (b) (2)• Grantees and subgrantees will maintain a contract

administration system which ensures that contractors perform in accordance with the terms, conditions, and specifications of their contracts or purchase orders.

Contract Monitoring

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Contract Monitoring (cont.)

44 CFR 13.36 (f)

• Grantees and subgrantees must perform a cost or price analysis in connection with every procurement action including contract modifications.

Review, Monitor and Document

• Review grant requirements, grant guidance, code of federal regulations, rules and regulations, and omb circulars.

• Monitor grant performance, subrecipients, contracts, reporting, grant requirements, etc.

• Document, document, document!

• Note: Lack of adequate documentation may result

in questioned costs.

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Resources

44 CFR Part 13•http://www.ecfr.gov/cgi-bin/text-idx?tpl=/ecfrbrowse/Title44/44cfr13_main_02.tpl

2 CFR Part 225•http://www.ecfr.gov/cgi-bin/text-idx?tpl=/ecfrbrowse/Title02/2cfr225_main_02.tpl

OMB Circular A-133•http://www.whitehouse.gov/sites/default/files/omb/assets/a133/a133_revised_2007.pdf

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Resources (cont.)

EMHSD Information Bulletin 11-02•http://www.michigan.gov/documents/msp/compliance_with_grant_requirements_369178_7.pdf

Past MSP-EMHSD Presentations•http://www.michigan.gov/msp/0,4643,7-123-1593_3507_41574---,00.html

Sample Equipment Tracking Form•http://www.michigan.gov/msp/0,4643,7-123-1593_3507_41574-214684--,00.html

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Questions?

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Contact Information

Ms. Jackie Reese, Audit Unit ManagerPhone: (517) 324-2330Email: ReeseJ@Michigan.gov

Mr. Richard Sheaffer, AuditorPhone: (517) 333-4624Email: SheafferR@Michigan.gov