Martin O

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Martin OMalley, GovernorAnthony Brown, Lt.
Governor
The Governors Grants Office Presents Smart
Issues for Effective Grants Management Governors
Grants Office Higher Education Conference May
22, 2012
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What We Will Cover Today!

• Best Practices in Grant Management
• Sustainability Strategies
• Legal Considerations in Distinguishing
  Subrecipients from Vendors
• We want this to be interactive!

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Best Practices in Grant Management

• Yippee - We got the grant!
• Everyone is thrilled, your boss, colleagues, etc.
• Oh no We got the grant! ? And, reality sets in!

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Best Practices in Grant Management

• What is Effective Grants Management?
• Process or result of adequate overall oversight
  and monitoring of grant awards that includes
  project resources, activities and results.
• Begins BEFORE the award is signed.

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Best Practices in Grant Management

• Organize for Receipt and Management of Funding
• Upon award convene all stakeholders ASAP (AIMM
  meetings at AACC)
• Effective communication is essential/Building a
  consensus
• Help keep team on task

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Best Practices in Grant Management

• Compliance Issues
• Federal/State government funding
• Authorizing legislation
• Code of Federal Regulations
• OMB Circulars
• Accountability transparency
• Foundation funding
• Accountability transparency
• Endorsement requirements
• Conflicts of interest
• Individual donations
• Accountability transparency
• Endorsement requirements
• Conflicts of interest

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Best Practices in Grant Management

• Develop a Task Management Plan (Metrics, Fiscal
  Reporting, Program Reporting)
• Maintain a Sound Purchasing System
• Follow Necessary Personnel Practices
• Manage Property Purchased with Grants
• System of Quality Review and Control

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Sustainability Strategies

• Plan from DAY ONE
• Collaborate, Collaborate, Collaborate
• Employers/Community Partners Engaged

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Sustainability Strategies

• Align with similar projects within your
  organization
• Be knowledgeable about other funding sources
• Success of project is important factor did it
  build goodwill?

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Distinguishing Subrecipients from Vendors

• OMB Circular A-110 Uniform Administrative
  Requirements for Grants and Agreements With
  Institutions of Higher Education, Hospitals, and
  Other Non-Profit Organizations
• OMB Circular A-133 Audits of States, Local
  Governments, and Non-Profit Organizations

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OMB Circular A-133 ___.105 Definitions

• Subrecipient means a non-Federal entity that
  expends Federal awards received from a
  pass-through entity to carry out a Federal
  program, but does not include an individual that
  is a beneficiary of such a program. Guidance on
  distinguishing between a subrecipient and a
  vendor is provided in OMB Circular A-133___.210.

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OMB Circular A-133 ___.210
(b) Federal award. Characteristics indicative
of a Federal award received by a subrecipient are
when the organization (1) Determines who is
eligible to receive Federal financial assistance
(2) Has its performance measured against whether
the objectives of the Federal program are
met (3) Has responsibility for programmatic
decision making (4) Has responsibility for
adherence to applicable Federal program
compliance requirements and (5) Uses the Federal
funds to carry out a program of the organization
as compared to providing goods or services for a
program of the pass-through entity.
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OMB Circular A-133 ___.105 Definitions
Who is Not a Subrecipient? Vendor means a
dealer, distributor, merchant, or other seller
providing goods or services that are required for
the conduct of a Federal program. These goods or
services may be for an organization's own use or
for the use of beneficiaries of the Federal
program. Additional guidance on distinguishing
between a subrecipient and a vendor is provided
in OMB Circular A-133 ___.210
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OMB Circular A-133 ___.210
(c) Payment for Goods and Services.
Characteristics indicative of a payment for goods
and services received by a vendor are when the
organization (1) Provides the goods and services
within normal business operations (2) Provides
similar goods or services to many
different purchasers (3) Operates in a
competitive environment (4) Provides goods or
services that are ancillary to the operation of
the Federal program and (5) Is not subject to
compliance requirements of the Federal program.
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OMB Circular A-133 ___.210
(d) Use of judgment in making determination.
There may be unusual circumstances or exceptions
to the listed characteristics. In making the
determination of whether a subrecipient or vendor
relationship exists, the substance of the
relationship is more important than the form of
the agreement. It is not expected that all of the
characteristics will be present and judgment
should be used in determining whether an entity
is a subrecipient or vendor.
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Why Does it Matter?
Different Terms and Conditions All grant
terms and conditions apply to Awards
and Subawards Almost all of the requirements
for the primary recipient flow down to the
subrecipient, but not to vendors Vendor
Contracts are governed by procurement rules
of Grantee and terms of the contract
Subrecipients are subject to full audit Vendors
are not Vendors may receive profits or fees
Subrecipients generally may not Subrecipients
are treated same as recipient
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Why Does it Matter?
Different Procedural Requirements Vendor- Free
and Open Competition Subrecipient Prior
Federal Approval Usually in proposal
Subrecipient Limits on ability to terminate
Vendor contract terms spell out termination
rights Subaward is cost-reimbursement
agreement Vendor contract can be fixed-price,
time and materials, etc.

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Why Does it Matter?
Subrecipients/Subgrantees are subject to the
audit requirements of OMB Circular A-133
Vendor compliance ensure that procurement of,
receipt, and payment for goods and services
comply with law Program compliance do not
normally pass through to vendors Recipient
responsible for ensuring that vendor transactions
are in compliance with program Vendors records
must be reviewed to determine program compliance
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Procurement ApplicabilityPer COMAR 21.01.03.04
This title does not apply to any procurement or
contract to the extent of any conflict with A
governing federal law, regulation, assistance
instrument, or other requirement or The terms
of any gift as defined in Article 1, Subsection
22, Annotated Code of Maryland A grant from
anywhere other than the federal government is
treated as a gift.
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Thank you!

• Kathy Bolton, Executive Director
• Sponsored Programs
• Anne Arundel Community College
• kebolton_at_aacc.edu
• 410.777.2028
• Merril Oliver, Deputy Director
• Maryland Governor's Grants Office
• moliver_at_gov.state.md.us
• President, National Grants Management Association
• NGMA.org