Introduction to Grants and Cooperative Agreements PY220

1
Introduction to Grants and Cooperative
Agreements (PY220)

• Office of the Procurement Executive (A/OPE)
• Mr. Corey M. Rindner,
• Procurement Executive

2
Introduce Your Neighbor

• Find out
• Name
• Position/Section
• How long with USG
• Experience with Grants
• One item you would like to discuss about grants
  during this course
• Report out to class 1 minute each

3
Office of Procurement Executive / Federal
Assistance Staff (A/OPE/FA)

• Georgia Hubert, Director,
• HubertGK_at_state.gov, 703-812-2526
• Kimberly S. Butler, Grants Policy Analyst,
• ButlerKS2_at_state.gov, 703-516-1754
• Phyllis Swann, Grants Policy Analyst,
• SwannPA_at_state.gov, 703-516-1691

4
A/OPE/FA Staff

• Joanna Snearly, Grants Policy Analyst,
• SnearlyJP_at_state.gov, 703-516-1989
• Anita Exum, Grants Policy Analyst
• ExumAE_at_state.gov, 703-875-5119
• Gregory Young, Grants Management Specialist,
• YoungGM_at_state.gov, 703-516-1988

5
A/OPE/FA Staff

• Steve Galiotto, Grants Management Specialist,
• GaliottoSJ_at_state.gov, 703-875-7499
• Barbara Fox, Grants Management Specialist,
• FoxBT_at_state.gov, 703-875-7169
• Jennifer King, Grants Management Specialist,
• KingJS_at_state.gov, 703-516-1886

6
Module 1

• Introduction to Assistance
• 1.1 History of Grants
• 1.2 The Federal Grant and Cooperative Agreement
  Act of 1977
• 1.3 Categories of Grants
• 1.3.1 Discretionary Grants
• 1.3.2 Mandatory Grants

7
History of Grants

• Historically, the United States Government
  performed most of its functions using its own
  employees.
• When American industry grew, the Federal
  Government began to rely on private industry to
  provide goods and services for federal agencies.
• These goods and services were provided by a
  contract.

8
History of Grants

• The first grants were grants of property for
  schools, roads, canals and railroads known as
  Land Grants.
• Agricultural land grant colleges, which fell
  under the Morrill Act of 1862, were the most
  popular recipients.
• During the Great Depression in the 1930s,
  "grant-in-aid" programs were developed to aid
  individuals, such as the unemployed.

9
Getting and Giving

• Some grants were aimed at benefiting the
  recipient, some were designed to provide a
  service or benefit to the government.
• However, federal agencies occasionally used
  grants to avoid the requirements of the
  procurement system. Many agencies began to use a
  cooperative agreement to exert more control
  over grant programs but avoid what they perceived
  as inflexible procurement rules.
• In 1969 Congress established the Commission on
  Government Procurement (COGP).
• A 1972 report by the COGP recommended that
  legislation clarify the differences between
  procurement and assistance and distinguish
  between grants and cooperative agreements.

10
The Federal Grant and Cooperative Agreement Act
of 1977

• This act was designed to
• Distinguish the proper tools to use when the
  Federal Government works with a recipient for
  federal funding (contract, grant or cooperative
  agreement)
• Bring about uniformity in the selection and use
  of procurement contracts, grants and cooperative
  agreements
• To curb the misuse of assistance instruments in
  procurement situations.
• Agencies must have specific statutory authority
  to enter into grants or cooperative agreements

11
The GAO Speaks Out on Acquisition
"Every agency has inherent authority to enter
into contracts to procure goods and services for
its own use, as long as the purpose of the
procurement is reasonably related to the agencys
mission. -GAO (Government Accountability
Office), Principles of Federal Appropriation Law,
2d ed., at 10-11
12
The GAO Speaks Out on Assistance
However, there is no comparable inherent
authority to give away the governments money or
propertyto benefit someone other than the
government this must be authorized by Congress.
Therefore, the agencys basic legislation must be
studied to determine whether an assistance
relationship is authorized at all, and if so,
under what circumstances and conditions." -GAO
(Government Accountability Office), Principles of
Federal Appropriation Law, 2d ed., at 10-11
13
Types of Grant Programs

• Grants can be categorized by purpose. For example
• Public Diplomacy grants
• Research grants
• Anti-drug grants
• Anti-trafficking grants
• Reconstruction grants

14
Discretionary Grants

• Discretionary grants permit the Grants Officer
  to exercise wide latitude and judgment in
  selecting both the projects to be supported and
  the recipients.

15
Mandatory Grants

• Mandatory grants MUST be made to organizations,
  which meet statutory eligibility and compliance
  requirements and agency implementing regulations.

16
Assistance Instruments

• Within federal assistance, there are several
  kinds of awards, each of which serves a different
  purpose.
• Grants
• Cooperative Agreements
• Voluntary Contributions

17
Module 1 Review Questions

• Explain the reason that Congress established the
  Commission on Government Procurement in 1969.
• Explain the main purposes of the Federal Grant
  and Cooperative Agreement Act of 1977.
• Explain the difference between a contract, a
  grant, and a cooperative agreement.
• Explain the difference between discretionary and
  mandatory grants.

18
Module 2

• Authorities that Govern Federal Assistance
• 2.1 Applicable Regulations
• 2.1.1 The Role of Congress
• 2.1.2 The Office of Management and Budget (OMB)
• 2.1.3 Code of Federal Regulations (CFR)
• 2.1.4 Department of State Public Diplomacy
  Authorities
• 2.1.5 Catalog of Federal Domestic Assistance
  (CFDA)

19
The Role of Congress

• Financial assistance is provided to Federal
  government agencies through congressional
  authorizations and budget appropriations.
• Through program legislation, Congress controls
  this by placing limits on appropriations and
  designating which agencies are authorized to
  provide assistance for which programs.

20
The Five As

• How money moves in the Federal Budget
• Authorization
• Appropriation
• Allocation
• Apportionment (or Transfer 632a/b)
• Allotment
• Obligation

21
DoS Public Diplomacy Authorities

• The key public diplomacy authorization
  legislation is found in the following
  authorities
• Smith-Mundt The U.S. Information and
  Educational Exchange Act of 1948, P.L. 80-402, as
  amended, 22 U.S.C. 1431, et seq.
• Fulbright-Hays The Mutual Educational and
  Cultural Exchange Act of 1961, P.L. 87-256, as
  amended, 22 U.S.C. 2451, et seq.

22
Other Laws Affecting Grants

• Anti-Lobbying
• Anti-Drug
• Debarment and Suspension www.epls.gov
• Anti-Deficiency Act
• Federal Funding Accountability and Transparency
  Act of 2006

23
The Office of Management and Budget (OMB)

• http//www.whitehouse.gov/omb/
• OMB is tasked with assisting the President in
  overseeing the preparation of the federal budget
  and to supervise its administration in Executive
  Branch Agencies.
• Prepares grants guidance known as the circulars.
• Guidance being moved to 2 CFR
• Agency implementing guidance will also be
  relocated to 2 CFR

24
CFR Sections Applying to DoS Grants

• These sections of the CFR apply to Department of
  State grants
• 22 CFR Chapter I, Part 135 Uniform
  Administrative Requirements for Grants and
  Cooperative Agreements to State and Local
  Governments
• 22 CFR Chapter I, Part 137 Government-wide
  Debarment and Suspension (Nonprocurement) and
  Government-wide Requirements For Drug-free
  Workplace (Grants) www.epls.gov

25
CFR Sections Applying to DoS Grants

• These sections of the CFR apply to Department of
  State grants
• 22 CFR Chapter I, Part 138 New Restrictions on
  Lobbying
• 22 CFR Chapter I, Part 145 Grants and
  Agreements with Institutions of Higher Education,
  Hospitals, and Other Non-profit Organizations

26
Catalog of Federal Domestic Assistance (CFDA)

• The Catalog of Federal Domestic Assistance gives
  access to a database of all Federal programs
  available to
• State and local governments (including the
  District of Columbia)
• federally -recognized Indian tribal governments
• territories (and possessions) of the United
  States
• domestic public, quasi-public, and private profit
  and nonprofit organizations and institutions
• specialized groups
• and individuals.
• www.cfda.gov

27
Other Guidance

• GAO Principles Red Book Chapter 10
• State Department Policy tab 4 for GPDS (Grant
  Policy Directives)

28
Linking Assistance Instruments to Planning

• Each mission develops a Mission Strategic Plan
  (MSP) aimed at supporting certain performance
  goals of the Department of State. Within each
  plan are objectives supporting those goals. The
  role of grants is to ensure that they align with
  those objectives.

29
Linking Assistance Instruments to Planning

• Good grants tie clearly and directly to an MSP
  goal. They require significant commitments by the
  host-country individuals and organizations
  involved.
• Awards should be planned carefully, with outcomes
  that support Mission or Bureau goals and/or
  targets.

30
Module 2 Review Questions

• What are the differences between an authorization
  and an appropriation?
• What are State Departments primary Pubic
  Diplomacy authorizations?
• How Does the Anti-Deficiency Act affect a Grants
  Officer?
• How does OMB affect the grants making process?

31
Module 3

• Selecting the Appropriate Instrument
• 3.1 Distinguishing Procurement and Assistance
  Relationships
• Two Critical Assessment Tests
• 3.2 Types of Assistance Instruments
• Definition of Substantial Involvement
• Guidelines for the Use of Cooperative Agreements
• Other Assistance Mechanisms

32
Distinguishing Procurement and Assistance
Relationships

• Assistance
• For a public purpose
• Beneficiary-public
• OMB and DOS 22 CFR
• No profit
• Recipient can terminate
• Deliverable-report of project completion
• Requires a warranted grants officer signature

• Procurement
• Buy goods services
• Beneficiary-USG
• FAR
• May earn a profit
• Contractor has no right to terminate
• Deliverable-required product or service
• Requires a warranted contracting officer signature

33
A Procurement Contract is

• A legal instrument by which federal agencies
  obtain services or materials (including property)
  from the private sector for the benefit of the
  U.S. Government.
• Example A contract between a U.S. embassy and a
  private firm to provide security for mission
  facilities (i.e. may require close supervision of
  the contractors performance).
• Buying a computer for use by your bureau or post
  finance section.

34
Contracting Levels

• Petty Cash up to 500
• Micro-purchase up to 3,000
• Simplified Acquisitions up to 100,000
• Large Procurements over 100,000

35
Contracts to Support Grants

• Personal Services Contracts
• Personal Services Agreements
• Non-Personal Services Support
• Third Party Intermediary Contracts
• Purchasing Property to Grant

36
A Grant is

• An agreement in which the Federal Government
  provides funding or a thing of value to support a
  public purpose authorized by public statute. The
  government is not the recipient of the good or
  service and does not play a substantial role. The
  government is a patron.
• Example A Department of State grant given by a
  public affairs section to enable a host-country
  institution to hold a conference on nuclear
  non-proliferation.

37
Different Lexicons

• Contracting Terms contractors, bidders, bids,
  call for offers, contracting officer, scope of
  work, delivery date
• Grants Terms recipient, applicant, proposal,
  solicitations, grants officer, scope of the
  project, project period

38
Types of Assistance

• Grants (no USG involvement)
• Property Grants
• Grants to Individuals
• Grants to Commercial Firms
• Grants to Public International Orgs (PIOs)
• http//www.opm.gov/employ/internat/list.asp
• Voluntary Contributions
• Cooperative Agreements (substantial USG
  involvement)

39
Substantial Involvement

• Substantial involvement, associated with a
  cooperative agreement, is essentially the USG
  sharing participation and responsibility for the
  projects success. This can entail
• collaboration,
• consultation
• and intervention
• Cooperative Agreement must include
• Conditions/provisions appropriate to the project
• Explicit statement of the extent of the
  involvement
• There is no specific definition or congressional
  guidance as to the meaning of substantial
  involvement in the Federal Grant and Cooperative
  Agreement Act of 1977

40
Substantial Involvement (cont.)

• Generally involves, but is not limited to
• Active participation, collaboration, intervention
  in the design or direction of the project
• Review and approval of one phase of the project
  before another phase can begin
• Planned and anticipated requirements for ongoing
  technical direction and involvement in the
  implementation of the project
• Conducting a portion of the project with the
  recipient

41
Substantial Involvement (cont.)

• Generally does not involve, but is not limited
  to
• Approval of recipient plans or applications
  before award
• Routine monitoring, review and response to
  performance progress and financial reports, site
  visits or occasional unanticipated assistance
  during the project
• Normal due diligence responsibilities and budget
  review and analysis before issuing the award
• Auditing to ensure that program goals and
  objectives, and terms and conditions are
  accomplished

42
Other Assistance Mechanisms

• Representational Funds
• K Fund
• Invitational Travel
• 632 (a)
• 632 (b)
• Economy Act
• Gift

43
Common Myth

• Grants are just gifts.
• Or are they contracts?

44
Choosing the Right Instrument

• Sometimes program officials want to issue a
  contract rather than a grant (assistance
  instrument) because they believe a contract gives
  them greater control over a project.
• Select the instrument to achieve the appropriate
  level of control
• Faced with the paperwork and competition
  requirements associated with procurement, program
  officials may try to use an assistance award
  (grant or cooperative agreement) rather than a
  contract
• There are specific rules and legislative
  authorities that determine which instrument is
  appropriate.

45
Exercise

• Refer to the student manual Module 3
• In table groups, follow instructors directions
  and answer the questions in the manual on
  choosing the correct instrument.

46
Module 3 Review Questions

• What are the two critical tests that must be
  assessed in deciding whether to use an assistance
  instrument (issue a grant) or a contract?
• Explain the activities that would normally be
  considered substantial involvement in an
  assistance action.
• Explain those activities that would NOT normally
  be considered substantial involvement in an
  assistance action.
• Explain in general when cooperative agreements
  should and should not be used.
• Explain what items must be included in all
  cooperative agreements.
• Explain some of the main differences between
  Federal assistance actions and procurements
  actions.
• Discuss two other potential tools that could be
  used.

47
Module 4

• The Role of Federal Personnel
• 4.1 The Role of Grants Officers
• 4.2 The Role of Program Officers
• 4.3 The Role of the Grants Officer Representative
• 4.3.1 Responsibilities not Delegated

48
Mysteries, Myths and Misconceptions of Being a
Grants Officer
49

• No one ever looks at these.

50

• Washington approved the program so all is well.
  

51

• Im just the conduit for the funds.

52

• Its only 500.

53

• The Ambassador said to do it.

54

• How do I know if Im a grants officer?

55

• But I had a warrant at my last post!

56

• What reports?

57

• Wine isnt really considered alcohol in this
  country.

58

• It really wasnt entertainment because the
  event was boring.

59

• Whats monitoring got to do with me?

60
Grants Officer Roles

• The responsibilities of the grants officer
  include
• performing budget analysis of the grant before
  award
• monitoring the grants process to ensure
  compliance
• assuring effective use of funds
• receiving program and financial reports
• issuing notices of grant awards and amendments
• maintaining grant files and
• coordinating all grant termination or suspension
  actions.

61
Exceptions to who can sign an award

• Per GPD 8
• At post, with Regional Bureau concurrence over
  10,000
• Ambassadors Self Help Fund
• Democratization Grants
• Ambassadors Fund for Refugees
• Ambassadors Fund for cultural Presentation
• Ambassadors, Chief of Mission, direct hire
  American International Disaster Relief Chief of
  Mission
• 632(a) or (b) Transfer Bureau Executive
  Director or Deputy Assistant Secretary

62
Grants Officer Authority

• A grants officers warrant includes a dollar
  limit on the size of agreements the officer may
  enter into.
• All assistance agreements over 10,000 must be
  approved by the regional bureau.

63
ATTRIBUTES OF A GOOD GRANTS OFFICER

• Responsive
• Creative
• Knowledgeable
• Good business sense
• Integrity and Ethics
• Organized
• Documents well
• Gets along with others
• Sense of Humor
• Not afraid to say NO
• Good customer service

64
Program Officer Roles

• Negotiate preliminary grantee budgets.
• Coordinate with the Grantee on all technical
  matters which may arise in the administration of
  this grant.
• Give technical clarification as to the meaning of
  the specifications including inspection, testing
  and acceptance procedures.

65
Program Officer Roles

• Monitor and inspect the Grantee's progress and
  performance to assure compliance with the grant
  terms and conditions.
• Receive deliverables (supplies, services, and/or
  reports) on behalf of the Government.
• Verify satisfactory performance of grant
  activities and review progress reports and/or
  approve drawdown/reimbursement requests for
  payment.

66
Grants Officer Representative Roles (GOR)

• A GOR typically
• monitors the recipients performance,
• reviews payment requests,
• recommends grant amendments and
• maintains a liaison between the recipient and
  grants officer.
• A GORs appointment, made in writing, by the
  grants officer, is for a specific grant only.
• GORs appointment is done with a letter samples
  on A/OPE/FA intranet site.

67
Responsibilities Not Delegated

• The Grants Officer Representative (GOR) shall
  not Direct the Recipient to undertake ANY
  activity that will change the
• Total award amount
• Project purpose, description or content
• Project period
• Administrative terms or conditions of the award

68
EXERCISE
69
Break

• When we return, we will cover the life cycle of
  an award

70
EXERCISE
71
Award Life Cycle

• Check epls.gov
• Issue solicitation
• Negotiate and approve costs
• Notification of unsuccessful applicants
• Designation of a GOR
• Technical and program review
• Approve interim payments

• Post Request for Proposals on Grants.gov
• Obtain and review final reports
• Issue amendments
• Reconcile funds
• Close obligation
• Review interim reports
• Conduct Site Visit
• Prepare Notice of Award

72
GPDs - Module 4

• GPD 28 Roles Responsibilities
• GPD 26 Grants.gov
• GPD 27 Methods of Competition

73
Module 4 Review Questions

• Explain the role and authorities of the Grants
  Officer in a federal assistance action.
• Summarize the role and responsibilities of the
  Grants Officer Representatives (GOR) in a federal
  assistance action.
• What responsibilities may not be delegated to a
  Grants Officer Representative?
• Explain the process for appointing a Grants
  Officer Representative.

74
REVIEW EXERCISE Modules 1-4
75
Review Questions Modules 1-4

• Module 1
• What Act made the distinction between contracts,
  grants cooperative agreements.
• What are the two types of grant categories at the
  Department of State.
• Module 2
• Should domestic and overseas programs have a
  CFDA?
• What chapter of the Code of Federal Regulations
  applies to DOS assistance awards.
• Module 3
• What does substantial involvement relate to?
• What are the three types of assistance awards?
• Module 4
• Who is responsible for certifying funds?
• Describe the 4 phases of the grants management
  life cycle.

76
Module 5

• Requirements for Competition
• 5.1 State Department Policy
• 5.1.1 Competitive Procedures
• 5.1.2 Justification for Non-Competitive
  Assistance Award
• 5.2 Public Diplomacy Requirements if Using Other
  than Full and Open Competition

77
DoS Policy on Competition

• It is DoS policy to encourage competition in the
  awarding of grants unless legislation or
  international agreements require otherwise.
• Competition is also not mandated if
• a recipient organization has particular expertise
  required or
• if competition would increase costs.

78
Justification for a Non-Competitive Assistance
Award

• To justify not competing an award, the grants
  officer must
• document the history of past assistance awards
  under the program,
• extent of prior competition,
• likelihood of receiving competitive applications
  and why competition is not feasible.

79
Four Criteria for Exception to the Requirement
for Competition on Public Diplomacy

• A grant is made under the authority of
  Fulbright-Hays
• The terms of an international agreement or treaty
  between the United States and a foreign
  government or international organization have the
  effect of requiring the use of procedures other
  than competitive procedures
• A recipient organization has developed particular
  expertise in the planning and administration of
  longstanding exchange programs important to
  United States foreign policy or
• Introducing competition would increase costs.

80
Competitive Procedures

• The following are effective strategies for
  encouraging competition
• broadly advertising available grants in a variety
  of media, websites, Grants.gov
• reaching out to promising organizations,
• making several smaller grants rather than a
  single large one.

81
EXERCISE
82
Exercise Should they be competed, if so, how?

• A public diplomacy grant for 10,000 to teach
  Albanian students about Black History in the U.S.
• A public diplomacy grant for 15,000 to welcome
  three Fulbright scholars to the U.S.
• A public diplomacy grant for 11,000 to continue
  the development of a training program for
  Macedonian teachers that was started by the
  University of Iowa.
• A 25,000 grant to demonstrate utility of the
  Americans with Disabilities Act (ADA) in Colombia

83
Request for Grant Proposals (RFGP)

• A written request for applications must include
• a program description,
• eligibility requirements,
• application procedures and due dates,
• selection process,
• funding requirements and any matching funding
  needed,
• reporting requirements,
• OMB provisions,
• and anticipated processing time.

84
EXERCISE
85
Exercise - RFGP

• Turn to sample RFGP in student manual
• Develop an outline of an RFGP what would be the
  key elements?

86
Module 5 Review Questions

• Explain Department policy for competition of non
  Public Diplomacy assistance actions.
• Explain some possible ways to encourage
  competition for federal assistance awards.
• What are the exceptions to competing funding
  opportunities on Grants.gov?
• When are written justifications for
  non-competition of federal assistance awards
  necessary, and what should they contain?
• Explain the competition requirements for Public
  Diplomacy assistance actions.

87
Module 6

• The Application and Review Process
• 6.1 Grant Proposal Review
• 6.2 Pre-Award Responsibility Determination
• 6.3 Pre-Award Survey
• 6.4 High Risk Recipients
• 6.5 Budget Evaluation and Review

88
Grant Proposal Contents

• A grant proposal must include
• A SF-424 cover sheet Application for Federal
  Assistance
• a project narrative
• the need for assistance
• an outline of the problem
• anticipated results of the project
• details on the organization
• summary and/or detailed budget
• cvs or resumes of key personnel
• Additional requirements per Bureau Proposal
  Submission Instructions (PSI)

89
Grant Proposal Review

• Three primary criteria Cost, Past Performance,
  Capacity
• Additional criteria for evaluating a grant
  proposal
• determine if the proposed project addresses an
  MSP/OP goal
• targets the right audience
• is non-political or equally supportive of all
  parties
• has a reasonable budget with cost-sharing if
  appropriate
• and is sustainable
• The grants officer must also review all potential
  materials to ensure they support the project as
  proposed.

90
EVALUATING PROPOSALS Best Practices

• Democracy Commission Grants
• Public Diplomacy Grants
• Fulbright-Hays Grants
• Population and Refugee Migration Grants
• Others

91
Pre-Award Responsibility

• The grants officer is charged with conducting a
  pre-award survey to include
• ensuring that the prospective recipient is
  eligible to receive a grant,
• has appropriate resources to meet project
  requirements and
• has a satisfactory record of performance and
  integrity.

92
Points To Review

• Technical
• Ability to perform
• Org structure
• Key personnel
• Expertise in the area
• Equipment, facilities
• Other commitments
• Ability to staff
• Registered, if required
• Licensed, if required

• Financial
• Bank accounts
• Ability to get credit
• Security
• Check epls.gov
• Past Performance
• Experience with this grantee?
• Experience in the area
• Do your FSNs know them?

93
Pre-Award Survey

• A pre-award survey is required for new
  recipients and if there is any question of the
  recipients capability to perform including the
  following
• The Grants Officer or Program Officer is
  uncertain about the prospective recipients
  capacity to perform financially or technically.
• The prospective recipient has never had a
  Department of State grant.
• The Grants Officer otherwise determines it to be
  in the best interest of the Government.

94
Additional Vetting

• Terrorism
• Anti-prostitution

95
High Risk Recipients

• A recipient that the grants officer has doubts
  regarding their ability to complete the project.
• For high-risk recipients, the grants officer may
  choose to
• attach conditions to the grant,
• allow for technical assistance,
• or reduce the amount of the award.

96
Budget Evaluation - Costs

• Cost Principles OMB Circular A-122 (for DoS
  22CFR Part 145)
• Allowable
• Reasonable
• Allocable
• Direct vs. Indirect costs

97
Budget Evaluation - Guidelines

• Necessary or Integral?
• Consistent with Program Announcement?
• Detailed or Vague?
• Compliance with Regulations?
• Cost Sharing?

98
Cost Sharing

• The principle of cost sharing is an important
  element in supporting many programs, however,
  unless cost sharing has been specifically
  required.
• Some Department of State programs require a
  specified amount or percentage of cost sharing to
  be provided by the recipient.
• Cost sharing amount proposed by recipient
  organizations are approved and incorporated as
  part of the allowable budget items.

99
Program Income

• Definition gross income earned by the recipient
  that is directly generated by a supported
  activity or earned as a result of the award.
• Retained by recipient BUT used
• Additive to federal funds
• Deducted from federal funds
• Finance non-federal share of program

100
Pre-Award Costs

• At Your Own Risk!!!
• Grants Officer can authorize for 90 days prior to
  Notice of Award
• Must be necessary for conduct of project
• Not a method to ratify unauthorized commitments!

101
EXERCISE
102
Module 6 Review Questions

• List what types of information should be
  contained in a grant proposal.
• List some major questions that should be
  considered when evaluating a grant proposal.
• What is a pre-award responsibility determination?
  
• What conditions would make a pre-award survey
  necessary, and what should the survey consider?
• Define a high risk recipient and explain what
  might be done to minimize risk when making an
  award to such a recipient.
• Define allocable, allowable, and reasonable costs.

103
Module 7

• Negotiation and Award
• 7.1 Relating Funding Level to Grant Activities
• 7.2 Establishing the Period of Performance
• 7.3 Terms and Conditions
• 7.4 Reporting Requirements
• 7.4.1 Financial Reports
• 7.4.2 Program Reports

104
Prior to Negotiation and Award

• Verify that funds are available
• Proposal or Request from Applicant
• Budget
• Decision or Action Memo, if applicable
• Any additional required certifications and
  assurances, if applicable

105
Negotiating and Awarding

• In negotiating and awarding the grant, the grants
  officer is responsible for assuring that
• All elements of a legally binding instrument are
  met
•  Competent parties
•  Proper subject matter
•  Sufficient consideration

106
Meeting of the minds

• When two parties negotiate an assistance award
  both have the same understanding of the terms of
  the agreement. This mutual comprehension is
  essential to a valid assistance award. All
  elements of the award clearly and coherently
  express the specific understandings of both
  parties
•  Purpose
•  Program description
•  Award Project Period
•  Allowable line items
•  Award amount
• Reporting Requirements

107
Establishing the Award Project Period

• Effective date is the date specified in the award
  that reflects the project start and end dates for
  which expenditures may be charged to the award.
• Expiration date (date of completion) is the date
  specified in the notice of award that reflects
  the Project Start and end dates for which
  expenditures may be charged to the award.
• The award project period is the between the
  effective date and the expiration date.

108
Relating Funding Level to Grant Activities

• Prior to finalizing the award the Grants Officer
  must ensure that adequate funds are provided to
  carry out the scope of the grant.
• It should not be assumed that additional grant
  funds would be available.

109
Unallowable costs

• Alcoholic beverages
• Donations and Contributions
• Fines and Penalties
• Bad debts
• Entertainment

110
EXERCISE OMB A-122
111
FLY AMERICA ACT

• What does OMB say about travel?
• Do grantees have any flexibility? No.
• Do State personnel have any flexibility?
• Exceptions to Fly America
• Any experiences to share?
• Are grantees entitled to business class?
• What does OMB say about commercial air travel?

112
Reporting Requirements

• Grantees MUST submit financial and program
  reports. There are several important reasons for
  requesting reports
• Common sense dictates receiving reports
• Regulations require them
• The Grants Officers reputation and career may
  very well depend on effective grants management

113
Reporting RequirementsContinued

• If grantees have not submitted program reports
  you are obligated to try and collect them. You
  must notify the grantee three times in writing
  that the reports are overdue
• The first request is a gentle reminder
• The second request is a bit more direct
• The third notifies the grantee that they are in
  violation of the terms of the agreement, and may
  not be eligible for future grant awards.

114
Financial Reports

• ALL of your grantees MUST submit financial
  reports.
• Financial reports should be submitted quarterly.
• Final report needed for closeout.

115
Program Reports

• A program report should include
• A description of how the goals of the grant were
  met
• What problems were encountered and how they were
  resolved
• The likely future impact
• What new contacts were made
• What new plans or projects were conceived
• What issues were discussed and the participants

116
Notice of Award Components

• To comply with government-wide streamlining
  efforts of the Office of Management and Budget
  (OMB), the Departments federal assistance terms
  and conditions for both domestic and overseas
  awards, as well as the award package/format have
  been standardized.
• The Notice of Award consists of
• DS-1909, Award Coversheet
• Award Specifics
• Bureau/Program/Post Specific Requirements (if
  applicable)
• Standard Terms and Conditions for either Domestic
  or Overseas Awards

117
Module 7 Review Questions

• List the elements for a legally binding grant
  agreement that must be considered and included
  when negotiating an agreement.
• Define the term period of performance and
  explain how extensions requests are to be made.
• List the two types of reports that all recipients
  must provide, and explain why they are important.
• Explain the requirements for travel by grantees
  on US Flag Air Carriers.

118
Module 8

• Administration of Agreements
• 8.1 Budget Revisions
• 8.2 Program Changes
• 8.3 Equipment Purchases and Title to Property
• 8.4 Disposal of Property by Grant (Donation)
• 8.5 No Cost Extensions
• 8.6 Request for Additional Funds
• 8.7 Recipient Accountability
• 8.8 Payment Procedures
• 8.9 Official Grant Files

119
Budget Revisions

• The grants officer determines the approval
  required for budget revisions
• whether to use the 10 standard for budget
  variations or
• require prior approval for all variations.

120
Program Changes

• Changing political or economic situations in a
  foreign country may create a need to deviate or
  change from your original grant.
• It is the Grants Officers responsibility to
  ensure that any necessary amendments to permit
  any change to the program is issued in a timely
  fashion.

121
Equipment Purchases and Title to Property

• Equipment for your non-U.S. grantees.
• Loan them the equipment
• Require the recipient to rent the property is
  cost effective
• Permanently donate the equipment
• The preferred method is to give the recipient a
  cash grant to buy the equipment/property
• Things to keep in mind
• Grantee may have to pay a value added tax (VAT)
• Grantee must adhere to USG procurement rules

122
No Cost Amendments

• Possible reasons to grant a No Cost extension
• More time
• Program changes
• Reallocation of funds
• Changes in line items by more than 10

123
Requests for Additional Funds

• Require a written justification prior to
  expenditure.
• Must be specific and indicate which line items
  are being increased.
• If appropriate indicate additional or new line
  items.

124
Recipient Accountability

• Recipient must comply with any conditions imposed
  upon the award by the government and
• By accepting these funds, this constitutes the
  recipients consent to fulfill the requirements
  of the award.

125
Monitoring

• Strategies for monitoring grant agreements
  include
• Dividing the project into phases
• Conduct site visits
• Asking to see the recipients
• Records (accounting)
• Property
• Staff

126
Payment Procedures

• Recipients are typically paid in advance if they
  meet specific financial management criteria.
  (Reference in Terms and Conditions OMB Circular
  A-110, 215.20). For recipients that do not meet
  these standards or are high-risk the following
  may be used
• Advances
• working capital advances
• Pay on reimbursable basis
• Partial payments should be limited to minimum
  amounts needed

127
Official Grant Files

• Official grant files must be maintained in
  accordance with GPD 23 using the Federal
  Assistance File form DS-4012.
• DS-4012 includes a checklist of things that
  should be in a complete grant file.
• The folder can be ordered from RSC Manila
• The file can be downloaded from the A/OPE/FA
  website or e-forms

128
Official Grant Files Should Contain

• Certification of funds and authority
• Pre-solicitation clearances
• Successful applicants proposal
• Evaluation documentation
• Pre-award survey/documentation
• Negotiation record
• Award correspondence
• Award

129
Official Grant Files Continued

• Amendment documentation
• Payment documentation
• Program, financial and property reports
• Grants Officer Representative letter
• Any other necessary correspondences
• Closeout documentation

130
Module 8 Review Questions

• Explain the provisions of the standard clause for
  budget revisions in grant agreements.
• Explain the options available for disposition of
  equipment used by grantees for a particular
  grant.
• Define a no-cost amendment and explain the
  procedure for making one.
• Define a cost amendment and explain the procedure
  for making one.
• How frequently should reimbursement payments be
  made?
• Name the main items that should be included in an
  official grant file.

131
Review Questions Modules 5-8

• Describe the steps a Grants Officer needs to
  justify not competing an award?
• List contents of a grant proposal.
• What are the elements of a legally binding
  instrument?
• Who should amend a grant award?
• List elements needed in a Request for Grant
  Proposals.
• List the components of a Notice of Award.

132
Module 9

• Extraordinary Grant Problems
• 9.1 Suspension of Payments
• 9.2 Termination
• 9.3 Audit
• 9.4 Unauthorized Commitments

133
Suspension of Payments

• The grants officer may suspend payments on an
  award only if
• the recipient fails to comply with the project
  requirements
• the recipient fails to comply with the reporting
  requirements and/or terms and conditions
• or the recipient or sub-recipient is delinquent
  in a debt to the U.S.G.
• Reasonable notice of suspension is required

134
Termination

• The grant can be terminated by either party.
• The grants officer may terminate it if the
  recipient materially fails to comply with the
  terms.
• A portion of the grant may be terminated.

135
Required Audits

• Non-Federal entities that expend less than
  500,000 (total) a year in Federal awards are
  exempt from Federal audit requirements for that
  year, but records must be available for review or
  audit.
• Non-U.S. based entities are not subject to
  Federal audit requirements.

136
Unauthorized Commitments

• A GOR or grants officer who makes an unauthorized
  commitment may be held personally liable for the
  costs.
• The Procurement Executive may ratify an
  unauthorized commitment based on a report
  including
• Description and explanation of unauthorized
  action
• Beneficial results of that action
• Justification for approval
• Signature of individual, supervisor and assigned
  grants officer

137
Module 9 Review Questions

• Under what circumstances may the Department
  withhold payments to grantees?
• Define termination of a grant agreement, and
  explain when this can be done by the department,
  and by the grantee.
• Define an unauthorized commitment, and explain
  how one might occur.
• Explain the procedure for requesting approval of
  an unauthorized commitment.

138
Module 10

• The Closeout Process
• 10.1 Submission of Reports
• 10.2 Disposition of Property
• 10.3 Settlement of Accounts
• 10.4 Retention of Records

139
Submission of Reports

• A final report is required within the time frame
  stipulated in the grant agreement (usually 90
  days after the end of the period of performance).
  
• In addition to a narrative on program
  accomplishments, the report should include a
  financial accounting of all expenditures, any
  unexpended funds and the disposition of any
  equipment provided or acquired with grant funds.

140
Disposition of Property

• Equipment with a value of less than 5000 may be
  retained, sold or otherwise disposed of with no
  further obligation to the awarding agency.
• For equipment over 5000 recipients must request
  disposition instructions from the Department.

141
Settlement of Accounts

• If the recipient has unexpended funds after the
  project has been completed, the funds MUST be
  returned to the department and de-obligated.
• In addition, any grant funds that were paid to
  the recipient that exceed the amount the
  recipient is entitled to must be refunded to the
  Department.
• There is NO MINIMUM amount that can be forgiven.
  Example If a grantee owes 3 the Grants Officer
  is obligated to attempt to recover these funds.

142
Retention of Records

• Financial records, supporting documents,
  statistical records, and all other records
  pertinent to an award shall be retained for a
  period of three years.
• The only exceptions are the following
• If any litigation, claim, or audit is started
  before the expiration of the 3-year period, the
  records shall be retained until all litigation
  claims or audit findings involving the records
  have been resolved and final action taken.
• Records for real property and equipment acquired
  with Federal funds shall be retained for 3 years
  after final disposition.
• When records are transferred to or maintained by
  the Department, the 3-year retention requirement
  is not applicable to the recipient.

143
Module 10 Review Questions

• When should an assistance agreement be closed
  out, and what does this entail?
• When are all the reports due from the grantee?
• Briefly explain the provisions governing the
  disposition of property and equipment.
• What must the recipient do with the unexpended
  funds at the end of a grant period?
• What records must be retained in an official
  grant file after the agreement has ended, and for
  how long?

144
Module 11

• Conflicts of Interest and Other Improprieties
• 11.1 Current Environment
• 11.2 Bribery
• 11.3 Illegal Compensation
• 11.4 Ethical Conduct

145
ETHICS FOR GRANT ADMINISTRATORS

• Wardens of public trust
• Adhere to two core concepts
• Not use office for private gain
• Act impartially not give preferential treatment

146
Current Environment

• Government employees continue to be under intense
  scrutiny regarding improper behavior, which can
  often damage a career.
• Interacting with the private sector may sometimes
  cause situations, which may or may not be
  conflicts of interest.
• You are reminded to seek advice from the Office
  of the Legal Advisor for questions relating to
  ethics.

147
Bribery

• The Bribery Statute, 18 U.S.C. 201, provides a
  fine of not more than 20,000 or three times the
  monetary value of the gift, whichever is the
  greater, or imprisonment for not more than 15
  years, or both, for bribing or attempting to
  bribe a federal official or for accepting or
  agreeing to accept such a bribe.

148
Illegal Compensation

• There are specific prohibitions related to
  employees receiving gifts from those who have
  business with the embassy or the U.S. Government
  (see 3 FAM 4120).
• 18 U.S.C. 203 provides a fine of not more than
  10,000 or imprisonment for not more than two
  years, or both, for receiving, asking, demanding,
  soliciting or seeking any compensation or for
  knowingly giving, promising, or offering
  compensation for any service rendered by a
  federal official in relation to a variety of
  actions.

149
Ethical Conduct

• The Standards of Ethical Conduct for Employees of
  the Executive Branch (5 CFR 2635) outlines the
  basic requirements for ethical behavior expected
  of employees.
• A U.S. Government employee is restricted from
  discussing opportunities for the employees
  future employment with the grantee organization
  (see 18 U.S.C. Sec 208

150
AN EXAMPLE Legal or Not?

• You are a Board Member of an NGO that may receive
  a grant from you.
• You use your government computer and telephone to
  perform your Board Member responsibilities.
• You provide advanced information on upcoming
  grants to your NGO.
• Your name and USG title is listed on the
  organizations letterhead
• REMEMBER Cannot use government employment for a
  purpose that gives the appearance of using the
  office for private gain by anyone, or giving
  preferential treatment.

151
EXERCISE Ethical Dilemmas
152
Module 11 Review Questions

• What laws and regulations deal with the ethical
  conduct of Federal employees.
• Summarize the prohibitions against bribery and
  illegal compensation for Federal employees.
• Explain the limitations on receiving gifts from
  outside sources from Standards for Ethical
  Conduct for Employees of the Executive Branch.

153
LAST CHANCE
154
EXAM
155

• RELAX
• FOCUS
• RELAX
• DONT OBSESS
• RELAX
• THINK
• RELAX