Federal Grants Flashcards
(139 cards)
1
Q
spending clause
A
o The Spending Clause of the U.S. Constitution (Article I, Section 8, Clause 1) gives Congress broad power to authorize spending for the “general Welfare.”
2
Q
necessary and proper clause
A
o The Necessary and Proper Clause (Article I, Section 8, Clause 18) supplements Congress’s spending authority, allowing Congress to restrict how federal funds are used.
These clauses allow Congress can enact legislation to do things even when it is not one of the clear powers enumerated in the Constitution.
3
Q
supremacy clause
A
- Supremacy Clause – federal grant conditions are supreme, a state can’t waive them because of their own state conditions
4
Q
SD v. Dole
A
Congress can’t force the states to legislate but it can induce the state to legislate as a condition of receiving federal funds, under its Spending Power.
The Court established in South Dakota v. Dole that the exercise of the spending power must meet four conditions:
(1) it must promote the general welfare;
(2) there must be a nexus or connection between the purpose of the funds and the condition that the government is imposing; relate to the program or funding stream it restricts
(3) the conditions of the requirements being imposed and consequences of noncompliance must be unambiguous so can accept/reject (clear notice);
(4) the conditions cannot be coercive, which means that states must be left with a choice.
(5) can’t ask the state to do something unconstitutional; no independent constitutional bar
5
Q
clear notice under SD v. Dole
A
Pennhurst: Clear notice is “whether such a state official would clearly understand” that the state might incur the type of liability in question in the event of a statutory violation.
6
Q
relatedness under SD v. Dole
A
set a relatively low bar for the relationship between the condition and the federal interest.
A spending condition may also satisfy the relatedness requirement if the purpose of the condition is to ensure that federal funds are “properly spent.”
7
Q
anti-coercion under SD v. Dole
A
states must remain free to opt out by declining the federal funding
8
Q
independent constitutional bar under SD v. Dole
A
it would require or encourage the recipient to violate the Constitution
9
Q
appropriations clause
A
Art. I, § 9, cl. 7: “No Money shall be drawn from the Treasury, but in Consequence of Appropriations made by Law”
10
Q
three elements of legal availability
A
A federal agency may provide financial assistance only to the extent authorized by law and available appropriations. Thus, the three elements of legal availability—
(1) purpose,
(2) time, and
(3) amount—apply equally to assistance funds.
11
Q
bona fide needs rule
A
a basic principle of time availability, holds that an appropriation is available for obligation only to fulfill a genuine or bona fide need of the period of availability for which the appropriation was made.
* This rule applies to grants and cooperative agreements as well as to other types of obligations or expenditures.
12
Q
2 CFR Part 200 from OMB
A
- Sets floor of the requirements that all agencies that issue grants must follow
- Agencies can issue their own on top of that
13
Q
Federal Grant and Cooperative Agreement Act, 31 U.S.C. §§ 6301-6308
A
defines grant, procurement, and cooperative agreement
14
Q
procurement contract
A
An executive agency shall use a procurement contract as the legal instrument reflecting a relationship between the United States Government and a State, a local government, or other recipient when:
1. the principal purpose of the instrument is to acquire (by purchase, lease, or barter) property or services for the direct benefit or use of the United States Government; or
2. the agency decides in a specific instance that the use of a procurement contract is appropriate.
a. Direct benefit to the United States
15
Q
is a loan a form of federal financial assistance
A
yes
16
Q
grant
A
An executive agency shall use a grant agreement as the legal instrument reflecting a relationship between the United States Government and a State, a local government, or other recipient when:
1. the principal purpose of the relationship is to transfer a thing of value to the State or local government or other recipient to carry out a public purpose of support or stimulation authorized by a law of the United States instead of acquiring (by purchase, lease, or barter) property or services for the direct benefit or use of the United States Government; and
2. substantial involvement is not expected between the executive agency and the State, local government, or other recipient when carrying out the activity contemplated in the agreement.
17
Q
types of grants
A
Grants are either mandatory (e.g., entitlements, formula grants) or discretionary.
18
Q
public purpose
A
A public purpose can be anything that promotes the general welfare.
19
Q
obligations of a subaward
A
If you give a subaward, those people also have to be eligible and the grant’s requirements pass along to them.
20
Q
difference between grant and contract
A
Unlike contracts, government can terminate and impose more conditions on grants, and can fund at a higher level without additional consideration needed (from an appropriations standpoint).
* Grants can be a zero error standard, no performance
o For grants, you can’t get paid if later found ineligible and even if they partially performed
o Appropriations restrictions don’t apply in the same way (severability)
* For grants, courts do look towards contract principles to see whether you’ve entered into a contract
* If the agency terminates a grant, grantees still need to comply with post-award conditions
21
Q
cooperative agreement
A
An executive agency shall use a cooperative agreement as the legal instrument reflecting a relationship between the United States Government and a State, a local government, or other recipient when:
1. the principal purpose of the relationship is to transfer a thing of value to the State, local government, or other recipient to carry out a public purpose of support or stimulation authorized by a law of the United States instead of acquiring (by purchase, lease, or barter) property or services for the direct benefit or use of the United States Government; and
2. Substantial involvement is expected between the executive agency and the State, local government, or other recipient when carrying out the activity contemplated in the agreement.
Cooperative agreeements follow the same regulations as grants but with one distinction: substantial involvement.
22
Q
what does the agency need to issue federal financial assistance
A
The agency needs specific authority in the statute to issue grants, cooperative agreements, etc.
23
Q
Anti-Deficiency Act
A
law that imposes personal liability if an agency official violates appropriations law; applies just to the agency.
* prohibits federal organizations from incurring obligations or making expenditures that exceed the amounts available in appropriations or funds
24
Q
federal financial assistance
A
o (1) Assistance that recipients or subrecipients receive or administer in the form of:
(i) Grants;
(ii) Cooperative agreements;
(iii) Non-cash contributions or donations of property (including donated surplus property);
(iv) Direct appropriations;
(v) Food commodities; and
(vi) Other financial assistance (except assistance listed in paragraph (2) of this definition).
25
federal award
(i) The Federal financial assistance that a recipient receives directly from a Federal agency or indirectly from a pass-through entity, as described in § 200.101;
o (2) The instrument setting forth the terms and conditions
26
pass-through entity
a recipient or subrecipient that provides a subaward to a subrecipient (including lower tier subrecipients) to carry out part of a Federal program. The authority of the pass-through entity under this part flows through the subaward agreement between the pass-through entity and subrecipient
27
can a recipient award a subaward if the statute is silent
* If the statute is silent on whether you can give a subaward, then the default is that you can (an agency might have their own policies)
28
Subpart A
definitions
29
Subpart B
general provisions; Applies to agencies who make federal awards to non-federal entities
30
can OMB or the agency allow exceptions to these regs
yes
31
how can agencies impose legally binding requirements on recipients and subrecipients
1) Notice and public comment procedures through an approved agency process, including as authorized by this part, other statutes, or regulations; or
(2) Incorporating requirements into the terms and conditions of a Federal award as permitted by Federal statute, regulation, or this part.
32
what is the default language of a grant
English
33
what does the agency need to do re conflict of interest policies
o Agencies must establish conflict of interest policies and awardees must disclose conflicts of interest, fraud
Doesn’t say what action an agency has to take
BUT agency has to follow its own rules (Accarde doctrine)
34
2 CFR Part 25
o Grantee must have a UEI from SAM.gov, can’t make an award without one
Have to have a UEI but don’t have to be registered in SAM.gov
Must maintain registration in SAM at times during the award
35
2 CFR Part 70
o USAspending.gov is the repository for federal, grants, loans, insurance, obligated spending; came from FATCA; assistance must be displayed publicly here
o If an entity has 80% or more of revenue and 25 million or more from contracts, grants, etc., they must name top 5 executives
A recipient with gross income under $300,000 in the previous tax year is exempt from the requirements to report:
* (i) Subawards, and
* (ii) The total compensation of the five most highly compensated executives of any subrecipient.
o Subaward data must be published if they get equal or more than $30,000
Not exactly accurate
Relying grant recipients to enter data
36
subpart C
pre-award requirements and contents of federal awards
37
200.202 program planning and design
A program must be designed:
(1) With clear goals and objectives that provide meaningful results and be consistent with the Federal authorizing legislation of the program;
(2) To measure performance based on the goals and objectives developed during program planning and design.
38
200.204 NOFO
The Federal agency must announce specific funding opportunities for Federal financial assistance that will be openly competed. The term openly competed means opportunities that are not directed to one or more specifically identified applicants.
Use plain language to ensure the announcement is accessible.
limit the length and complexity of the announcement
Federal agencies may offer pre-application technical assistance or provide clarifying information for funding opportunities.
39
Appendix I
The Federal agency must include the information in Appendix I for every funding opportunity.
40
200.205 merit review
agencies must use merit reviews. A merit review is an objective process of evaluating Federal award applications in accordance with the written standards of the Federal agency.
The merit review process explained in this section must be described or incorporated by reference in the applicable funding opportunity.
o Must treated grantees fairly
41
200.206 risk review
The Federal agency must establish and maintain policies and procedures for conducting a risk assessment to evaluate the risks posed by applicants before issuing Federal awards. This assessment helps identify risks that may affect the advancement toward or the achievement of a project's goals and objectives.
o Review of OMB-designated repositories of government-wide data.
Risk criteria must be in the NOFO, but the agency can modify the risk assessment during the lifecycle
42
what is considered in the risk review
* Financial stability. The applicant's record of effectively managing financial risks, assets, and resources;
* Management systems and standards. Quality of management systems and ability to meet the management standards prescribed in this part;
* History of performance. The applicant's record of managing previous and current Federal awards, including compliance with reporting requirements and conformance to the terms and conditions of Federal awards, if applicable;
* Audit reports and findings. Reports and findings from audits performed under subpart F or the reports and findings of any other available audits, if applicable; and
* Ability to effectively implement requirements. The applicant's ability to effectively implement statutory, regulatory, or other requirements imposed on recipients of Federal awards.
o Agencies are restricted from making Federal awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from receiving Federal awards or participating in Federal awards.
43
200.208 specific conditions
the agency can impose specific conditions on a grant; can help respond to a risk review
44
what is analyzed to support a specific condition
(1) Review of OMB-designated repositories of government-wide data (for example, SAM.gov) or review of its risk assessment (See § 200.206);
(2) The recipient's or subrecipient's history of compliance with the terms and conditions of Federal awards;
(3) The recipient's or subrecipient's ability to meet expected performance goals as described in § 200.211; or
(4) A determination of whether a recipient or subrecipient has inadequate financial capability to perform the Federal award.
45
examples of specific conditions
(1) Requiring payments as reimbursements rather than advance payments;
(2) Withholding authority to proceed to the next phase until receipt of evidence of acceptable performance;
(3) Requiring additional or more detailed financial reports;
(4) Requiring additional project monitoring;
(5) Requiring the recipient or subrecipient to obtain technical or management assistance; or
(6) Establishing additional prior approvals.
46
what does the agency have to do before imposing a specific condition
must notify the recipient or subrecipient as to:
(1) The nature of the specific condition(s);
(2) The reason why the specific condition(s) is being imposed;
(3) The nature of the action needed to remove the specific condition(s);
(4) The time allowed for completing the actions; and
(5) The method for requesting the Federal agency or pass-through entity to reconsider imposing a specific condition.
o (e) Any specific conditions must be promptly removed once the conditions that prompted them have been satisfied.
47
200.210 pre-award costs
Proceed at your own risk
Sometimes agency can award pre-award eligible costs
* These costs are allowable only to the extent that they would have been allowed if incurred after the start date of the Federal award and only with the written approval of the Federal agency
48
where is federal award information posted
* § 200.212 Public access to Federal award information.
o (a) Except as noted in paragraph (c) of this section, the Federal agency must publish the required Federal award information on USAspending.gov
If found not to qualify, must publish in SAM
49
subpart D
post award federal requirements
50
§ 200.300 Statutory and National Policy Requirements
o The Federal agency or pass-through entity must manage and administer the Federal award in a manner so as to ensure that funding is expended and associated programs are implemented in full accordance with the U.S Constitution, applicable Federal statutes and regulations, and Subpart D’s requirements.
51
agencies' responsibility for monitoring performance
o The Federal agency must measure the recipient’s performance. The Federal agency should clearly communicate any expected outcomes that the recipient is responsible for measuring and reporting.
52
200.302 financial management systems
o Financial management systems must:
Track and segregate federal awards.
Document obligations, expenditures, and authorizations.
Maintain accountability for all funds, property, and assets.
53
200.303 internal controls
o Internal controls must align with federal standards (e.g., COSO, GAO Green Book).
o Internal controls that provide reasonable assurance that the recipient or subrecipient is managing the award in compliance with Federal statutes, regulations, the terms and conditions of the award
54
200.305 federal payment methods
o Payment methods must minimize the time elapsing between the transfer of funds from the Federal agency or the pass-through entity and the disbursement of funds by the recipient or subrecipient regardless of whether payments are disbursed by electronic transfer or other means
o Also governs reimbursements, cash payment, disbursement of funds
o Three disbursement methods ( § 200.305(b)):
Advance Payment: Allowed when the recipient maintains procedures minimizing the time between receipt and disbursement.
Reimbursement: Recipient incurs allowable costs and then submits documentation for payment.
Working Capital Advance: Used when reimbursement isn’t feasible due to cash flow constraints.
55
200.306 cost sharing
o Voluntary cost sharing is not to be used as a factor during merit review of applications or proposals
o The Federal agency or pass-through entity must accept any cost sharing funds as part of the recipient or subrecipient’s contributions to a program if requirements are met
Recipients must have an approved budget as part of the Federal award agreement ( § 200.308).
o Budgetary changes require prior written approval if significant.
56
200.311 real property
o Real property – title will vest upon acquisition in the recipient or subrecipient
Recipients retain title but must:
* Use the property for its authorized purpose
* Conduct physical inventory and maintain records
* Seek federal approval for disposal if applicable
o Disposition of real property – must obtain disposition instructions from the Federal agency or pass-through entity
Real property must be disposed of according to the regulations (compensation, title transfer)
o Federally owned and exempt property – title remains vested in the Federal government
57
difference between equipment and supplies
o Equipment is > $10,000 unless real property
o If you have equipment, a special condition should be imposed on the grant to file a UCC 1
o Equipment disposition is less stringent and may not require compensation or title transfer, depending on FMV
Intangible property: some government rights in it
§ 200.314 Supplies
o Difference between supplies and equipment: supplies are less than $10,000
o At end of the award, suppies not used over $10,000 are considered equipment
o Or if you change the use, the agency can give you disposition instructions (agency can allow it to be sold and you reimburse the government or grantee can sell it
58
200.318 general procurement standards
o Recipient or subrecipient must maintain and use documented procedures for procurement transactions
o Must maintain oversight of contractors to ensure performance in accordance with the terms and conditions of the contracts or purchase order
o Conflicts of interests – maintain written standards of conduct
o Must maintain records sufficient to detail the history of each procurement transaction (rationale for method, contract type selection, contract selection or rejection, and basis for price)
o Procurement methods: (1) micro- purchase; (2) simplified acquisitions (3) formal procurement methods
o Perform a cost or price analysis of every procurement transaction
59
200.319 competition
o (b) To ensure objective contractor performance and eliminate unfair competitive advantage, contractors that develop or draft specifications, requirements, statements of work, or invitations for bids must be excluded from competing on those procurements.
60
200.329 monitoring and reporting program performance
o Financial reporting – the Federal agency must require only OMB-approved government-wide data elements on recipient financial reports
o Collect financial reports no less than annually
o Submit financial reports no later than 90 days after reporting period
Final report – no later than 120 calendar days after period of performance (90 calendar days for subrecipient to pass-through entities)
o Monitoring and reporting program performance
The recipient and subrecipient are responsible for the oversight of the Federal award
Must use OMB-approved common information collections when requesting performance reporting information
Submit performance reports as required by the Federal award
61
200.331 subrecipient and contractor determinations
o Pass-through entity is responsible for making case-by-case determinations to determine whether the entity receiving Federal funds is a subrecipient or a contractor
Subrecipient – a subaward is for the purpose of carrying out a portion of the Federal award and creates a Federal financial assistance relationship with a subrecipient. § 200.331(a) – gives some characteristics that support the classification of the entity as a subrecipient
Contractors – a contract is for the purpose of obtaining goods and services for the recipient’s or subrecipient’s use and creates a procurement relationship with a contractor
62
200.332 requirements for pass-through entities
o Governs requirements for pass-through entities in dealing with subawards and subrecipients
Federal award identification; all subaward requirements based on statute, regulations, terms and conditions; additional requirements by the pass-through entity; indirect cost rate; requirement for records access, appropriate terms and conditions concerning close out
o § 200.332(c) – evaluate fraud risk of noncompliance
o § 200.332(d) – implementing specific conditions in subawards
o § 200.332(e) – monitoring activities of subrecipient as necessary
63
200.334 records retention
o The recipient and subrecipient must retain all Federal award records for 3 years from the date of submission of their final financial report
o Federal agency must request the transfer of records to its custody from the recipient or subrecipient if it determines that the records possess long-term value
o Storage – when practicable, in open and machine-readable format
o Access to records
The Federal agency, pass-through entity, IGs, Comptroller General or any other authorized representative must have the right of access to any records pertinent to the Federal award
64
subpart E
cost principles
65
factors affecting the allowability of costs
* (a) Be necessary and reasonable for the performance of the Federal award and be allocable thereto under these principles.
* (b) Conform to any limitations or exclusions set forth in these principles or in the Federal award as to types or amount of cost items.
* (c) Be consistent with policies and procedures that apply uniformly to both federally financed and other activities of the recipient or subrecipient.
* (d) Be accorded consistent treatment.
* (f) Not be included as a cost or used to meet cost sharing requirements of any other federally-financed program in either the current or a prior period.
66
200.404 reasonable cost
A cost is reasonable if it does not exceed an amount that a prudent person would incur under the circumstances prevailing when the decision was made to incur the cost. In determining the reasonableness of a given cost, consideration must be given to the following:
* Consider business practices, market rates, and fairness.
* Review necessity, efficiency, and applicable law.
67
200.405 allocable cost
A cost is allocable to a Federal award or other cost objective if the cost is assignable to that Federal award or other cost objective in accordance with the relative benefits received. This standard is met if the cost satisfies any of the following criteria:
* (1) Is incurred specifically for the Federal award;
* (2) Benefits both the Federal award and other work of the recipient or subrecipient and can be distributed in proportions that may be approximated using reasonable methods; or
* (3) Is necessary to the overall operation of the recipient or subrecipient and is assignable in part to the Federal award in accordance with these cost principles.
68
200.412 classification of costs
There is no universal rule for classifying certain costs as direct or indirect costs. A cost may be direct for some specific service or function but indirect for the Federal award or other final cost objective. Therefore, each cost incurred for the same purpose in like circumstances must be treated consistently either as a direct or an indirect cost to avoid possible double-charging of Federal awards.
69
why the distinction between direct and indirect costs matters
* Prevents double-charging or cost shifting between awards.
* Misclassification can violate consistency requirements and undermine cost allowability—even if the cost is otherwise reasonable or necessary.
* Some federal programs cap or disallow indirect costs entirely.
* Classification impacts budget formulation, reporting, and audit risk.
70
200.413 what are direct costs
Direct Costs are identifiable with a specific federal award:
* Examples: salaries of project-specific personnel, equipment for a defined objective, travel tied to a funded task.
* Must be treated as direct in like circumstances across all funding sources.
71
what kind of cost is an admin salary
Administrative and clerical staff salaries should normally be treated as indirect costs. Direct charging of these costs may be appropriate only if they meet all of the following conditions:
* (1) The administrative or clerical services are integral to a Federal award;
* (2) Individuals involved can be specifically identified with a Federal award; and
* (3) The costs are not also recovered as indirect costs.
72
unallowable costs that should be treated as direct costs for determining indirect costs
represent activities which:
* (1) Include the salaries of personnel;
* (2) Occupy space; and
* (3) Benefit from the recipient's or subrecipient's indirect costs.
73
200.414 what are indirect costs
benefit multiple programs and are not easily assignable:
* Examples: depreciation on facilities, admin staff, office supplies, utilities.
* Recoverable through a negotiated indirect cost rate or de minimis rate (≤15% of modified total direct costs if no negotiated rate exists
74
NICRA
) Negotiated indirect cost rates must be accepted by all Federal agencies. A Federal agency may use a rate different from the negotiated rate for either a class of Federal awards or a single Federal award only when required by Federal statute or regulation, or when approved by the awarding Federal agency in accordance with paragraph (c)(3) of this section.
(d) Pass-through entities. Pass-through entities are subject to the requirements in § 200.332(b)(4) and must accept all federally negotiated indirect costs rates for subrecipients.
75
de minimis rate
Recipients and subrecipients that do not have a current Federal negotiated indirect cost rate (including provisional rate) may elect to charge a de minimis rate of up to 15 percent of modified total direct costs (MTDC).
76
200.415 required certifications
Certifications must affirm expenditures comply with award terms—false certifications can trigger civil and criminal liability (e.g., 18 U.S.C. § 1001, 31 U.S.C. §§ 3729–3730).
(b) Subrecipients under the Federal award must certify to the pass-through entity whenever applying for funds, requesting payment, and submitting financial reports.
77
200.421 advertising/public relations
Allowable if necessary for outreach related to the award, unallowable if for promotional purposes
78
200.431 fringe benefits
Must be reasonable, consistently applied, and documented through benefit policies.
79
200.432 conferences
A conference means an event whose primary purpose is to disseminate technical information beyond the recipient or subrecipient and is necessary and reasonable for successful performance under the Federal award.
* Allowable conference costs may include the rental of facilities, speakers' fees, attendance fees, costs of meals and refreshments, local transportation, and other items incidental to such conferences unless further restricted by the terms and conditions of the Federal award. The costs of identifying and providing locally available dependent-care resources for participants are allowable as needed. The Federal agency may authorize exceptions for programs including Indian Tribes, children, and the elderly.
80
200.437 employee health and welfare
Allowable if aligned with internal policy and benefit all employees.
81
200.438 entertainment/prizes
Costs of entertainment, including amusement, diversion, and social activities and any associated costs (such as gifts) and prizes, are unallowable unless they have a specific and direct programmatic purpose and are included in a Federal award.
82
200.439 equipment and capital expenditures
Requires prior approval unless explicitly permitted.
83
o § 200.442 – Fundraising and Investment Management:
generally unallowable
84
o § 200.445 – Goods or Services for Personal Use:
Unallowable except in narrowly defined circumstances.
85
o § 200.459 – Professional Service:
Allowable with documentation of necessity and reasonable market rates.
86
o § 200.473 – Training and Education:
Allowable when improving project-related competencies.
87
o § 200.474 – Transportation:
Allowable if consistent with organizational travel policies.
88
o § 200.475 – Travel Costs:
Allowable if reasonable, documented, and aligned with federal and internal policies.
89
cap on salaries?
o No cap on salaries except for higher education
90
congressional appropriations
* Assistance awards can’t be made without authorizing legislation and appropriations
o Agencies have inherent authority to enter into contracts for its own needs but they need clear authority from Congress to issue financial assistance for a public purpose
Authorizing act: what agency can and can’t do
Appropriations: what funds the program
* Appropriations: provides the agency with budget authority/funding to incur obligations (can be specific or broad) and make payments to a recipient
o Originates in the House
91
different kinds of appropriations
Default is annual (1 yr): available for obligation only in the year when it is made
Multi-year: more than 1 yr
No-year: can make obligations indefinitely
Made on FY basis: starts Oct 1
92
budget authority
o Budget authority: funding available for a specific purpose
93
obligation
o Obligation: orders placed for property and services, contracts and subawards made, and similar transactions that require payment by a recipient or subrecipient under a Federal award that will result in expenditures by a recipient or subrecipient under a Federal award
You must incur the obligation while the funding complies with (31 USC 1301): purpose, time (But it doesn’t limit the time the grantee can use the funds, rather the time principle applies to the grantor agency), and amount
94
When does a grant agreement take place (helps decide whether something has been obligated):
1. Agency signs the grant after the appropriation comes in (and they have authorizing legislation)
a. Agency time, purpose, amount, conditions set in advance
b. Unknown at the time who is receiving the grant
c. Applicants starts the process and it can change during that
2. Applicant accepts a modified offer from the agency
a. Funds reserved for an award
b. Agreement starts when the recipient signs the offer
3. Applicant has revised their application and submitted it
a. Grant agrrement starts when the agency signs
4. Agency unilateral action
a. Most common
b. Agency executes the award and obligates funding even if the recipient doesn’t see it until after
i. Conditions:
1. The document the agency is signing has to have the amount, time, purpose, terms spelled out
2. Must give specific date for signature
3. Recipient accepts by signing or drawing down funds
95
step 1: pre-award phase
Pre-Award Phase: represents the beginning of the grant lifecycle, which includes announcing opportunities, submitting applications, and reviewing applications
96
changes to NOFOs after Oct 1 2024
o Federal agencies must include the same or similar section headings and a table of contents
Basic Information
Eligibility
Program Description
Application Contents and Format
Submission Requirements and Deadlines
Application Review Information
Award Notices
Post-Award Requirements and Administration
o Increase the accessibility, readability, clarity and design of NOFOs
97
where are funding opportunities posted
* Funding opportunities are posted on grants.gov and may also be findable on agency websites.
o However, the regulations in effect prevail over grants.gov.
98
what is a nofo
NOFO: announces available federal grant funding, the requirements, application review process, and the deadline.
99
what should be on grants.gov nofo
o 203(a) provides summary information that must be displayed on Grants.gov.
o 203(b) suggests a 60 day time window and provides that no funding opportunity should be available for less than 30 calendar days “unless the Federal agency determines that exigent circumstances justify this.”
100
grant application process from grantee's perspective
1. Search for funding opportunities on grants.gov
2. Register to apply for grants
a. Register for an account on SAM.gov, a government-wide registry for organizations doing business with the Federal government, to obtain a Unique Entity Identifier (UEI). The UEI is a 12-character alphanumeric identifier assigned to all entities (public and private companies, individuals, institutions, or organizations) to do business with the Federal Government.
c. After obtaining the UEI for the organization from SAM.gov, you must return to Grants.gov to continue registration.
3. Complete your application on Grants.gov
a. If you are interested in more specific information or training on the development of an effective proposal, there are a number of options out there. First, we recommend perusing the awarding agencies website. Often, the awarding agency provides specific information on pre-award processes pertaining to their types of funding opportunities.
101
grants.gov
a. Grants.gov is the single government point of entry for publishing Federal government discretionary grant and cooperative agreement Funding Opportunity Announcements (FOAs)/Notices of Funding Opportunities (NOFOs).
102
SAM.gov
b. USASpending.gov is a single, searchable website accessible to the public listing information about every federal award, as required by the Federal Funding Accountability and Transparency Act (FFATA) of 2006.
103
considerations for drafting an effective proposal
preparation, development, drafting
104
a. To make a compelling case, the following should be included in the proposal:
i. nature of the project, its goals, needs, and anticipated outcomes;
ii. how the project will be conducted;
iii. timetable for completion;
iv. how best to evaluate the results (performance measures);
v. staffing needs, including use of existing staff and new hires or volunteers; and
vi. preliminary budget and cost-sharing provisions, covering expenses and financial requirements, to determine what funding levels to seek.
105
considerations when drafting
i. All the requirements from the funding source must be met: prescribed format, necessary inclusions, deadlines, etc.
ii. The proposal should have a clear, descriptive title.
iii. The proposal should be a cohesive whole, building logically, with one section leading to another; this is an especially important consideration when several people have been involved in its preparation.
iv. Language should be clear and concise, devoid of jargon; explanations should be offered for acronyms and terms which may be unfamiliar to someone outside the field.
v. Each of the parts of the proposal should provide as brief but informative a narrative as possible, with supporting data relegated to an appendix
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basic sections of standard grant proposal
i. cover letter
ii. proposal summary or abstract
iii. introduction describing the grantseeker or organization
iv. problem statement (or needs assessment)
v. project objectives
vi. project methods or design
vii. future funding
viii. project evaluation
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Application from agency's perspective
1. Initial Screening to ensure application is complete
a. AKA Technical review/no-go criteria/responsiveness (what to do you have to do to get to merit criteria) – did they fill out application properly*; looking for the presence of a required element, not the quality of it
2. Merit/Programmatic Review and Substantial Assessment
3. Budget/financial review
4. Risk Review
5. Consideration of additional factors
6. Award Decision/announcement
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format of merit review
i. review is typically conducted by independent experts who assess the applications using the uniform rating or scoring system established by each awarding agency
1. A common format is a peer review panel of at least three people, who assess and score each application independently. Then, the peer review panel will convene to discuss the merits of the applications. A series of policies and assurances are in place to maintain a fair, objective process based on material facts in the applications and without conflicts of interest (COI) for the peer reviewers. The federal agency staff monitor and participate in this review process.
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budget/financial review
i. Will review based on cost effectiveness. Look at budget, staffing, fringe benefits, supplies, contracts, indirect costs
ii. All costs must be reasonable, allowable, allocable
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consideration of additional factors
ii. The Grants Officer’s decision to obligate funds must be an independent decision, made only after he/she is personally satisfied that it is appropriate to make the award. The Grants Officer’s signature on the Notice of Award or on the Amendment constitutes an obligation of Federal funding. Grants Officers must promptly notify Program and Accounting/Finance Offices when funds have been obligated.
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award decision and NOA
a. Grant doesn’t exist if there isn’t a valid grant agreement (notice of award that they were selected)
a. Must be obligated according to time, purpose, amount
Notice of Award (NOA): The NOA is the official, legally binding issuance of the award. When you or your organization accepts the grant (i.e., by signing the grant agreement or by drawing down funds) you become legally obligated to carry out the full terms and conditions of the grant.
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standard conditions of every grant per 200.211
1. Performance goals
2. General award information like recipient name, UEI, period of performance, etc.
3. General terms or conditions
4. Administrative requirements.
5. National policy requirements.
6. Recipient integrity and performance matters.
7. Future budget periods.
8. Termination provisions.
9. Federal award specific terms and conditions
10. Federal agency requirements.
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post-award phase
The post award phase comprises a significant amount of work over the duration of the award dates, which includes implementing the grant, reporting progress, and completing the closeout requirements.
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post-award reporting
a. The agency monitors your progress and expenditures through various programmatic and financial reporting procedures, as well as using performance metrics per the grant agreement.
b. The awarding agency typically has a grants management officer and program officer designated to each grant, both of which you will work with throughout the life of the grant. They are the ones who will review reports and conduct site visits.
c. Poses unique challenges because federal government is not substantially involved with the implementation of the program that received the grant. Consequently, it's difficult to catch bad actors.
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auditing: single audits
i. A non-Federal entity that expends $1,000,000 or more in Federal awards during its fiscal year may be required to have a single audit conducted for that year. This audit is in lieu of any financial audit of Federal awards, which a non-Federal entity is required to undergo under any other Federal statute or regulation. After completion of the audit, the non-Federal entity submits the audit reporting package to the FAC within nine months after the end of the audit period. The non-Federal entity also performs follow-up and corrective action on all audit findings.
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closeout
ii. The closeout process is described in §200.343 and §200.344
1. §200.343: Closeout references the actions that the non-Federal entity and the Federal awarding agency or pass-through entity must take to complete the closeout process at the end of the period of performance
2. §200.344: Post Closeout and Continuing Responsibilities- describes what may be necessary as a result of an audit or a monitoring review
3. §200.345 Collection of Amount Dues: money due to the Federal awarding agency and the steps that may be taken to assure any amounts due are repaid to the Federal government
iii. No additional costs may be incurred after the expiration of the grant
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allowable admin costs during closeout
v. Administrative costs associated with the closeout activities of a Federal award are allowable, the recipient or subrecipient may charge the Federal award during the closeout for the necessary administrative costs of that federal award
1. (salaries of reporting personnel preparing final reports, publication and printing costs, costs associated with disposition of equipment and property, and related indirect costs)
2. These costs may be incurred until the due date of the final reports §200.472(b)
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disposition of equipment
2. The organization may retain the equipment to be used for the purpose under which it was acquired under the grant, whether or not the project continues to be supported by federal funds
3. The organization may use the equipment for other federally sponsored activities
4. If the organization determines that there is no further use for equipment purchased with ETA grant funds, the non-federal entity is responsible for the disposition of said equipment in accordance with §200.314(e): there are several methods that can be utilized including: transfer, sale, scrap, or other means)
a. Items sold need to be reported to the agency, and there is a reimbursement formula for the agency
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what happens when the grant is finally over
b. When the grant is finally over, the federal agency will confirm that the recipient has completed all of the required grant work and all the applicable administrative tasks.
i. Until the awarding agency confirms this, the grantee is still responsible for fulfilling all the terms of the grant
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agency oversight tools
* IGs use investigations, audits, and evaluations to perform grant oversight functions.
* Agency has confidential ethics forms
* The Agency can request financial disclosures from the grantee or pass-through entity.
* Congress and GAO can conduct oversight
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oversight done by recipients
* The recipient and subrecipient are responsible for the oversight of the federal award (200.329)
* Requirements for pass-through entities (200.332). Many requirements, applying also to the agency, including
o Identity verification (including in SAM.gov)
o Evaluate each subrecipient's fraud risk and risk of noncompliance with a subaward -- including how much direct oversight the subrecipient has from the agency (200.332(c))
* Review any changes in budget requests of subrecipients (200.308(d))
o Agencies must also do this with recipients
* Manage property to prevent loss, ensure traceability, etc. (200.313(d))
o These requirements ensure agencies can monitor subrecipients effectively. Subrecipients have similar requirements.
* Procurement / oversight of contractors (200.318(b) [see also 200.501]): Have to make sure any interactions with contractors are in accordance with terms and conditions of their contracts/purchase orders.
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IG Act
created independent Inspectors General (IGs) within federal agencies to serve as internal watchdogs over agency operations. The Act’s purpose is to promote efficiency, prevent and detect fraud, waste, and abuse, and keep both agency leadership and Congress informed of problems.
* The Act establishes key authorities and duties for IGs, including:
o Conducting audits, investigations, inspections, and evaluations of agency programs and operations.
o Accessing all relevant agency records, documents, and personnel.
o Issuing semiannual reports to Congress highlighting findings, recommendations, and significant issues.
o Referring criminal violations to the Department of Justice.
* Twenty-nine executive agencies currently issue Federal grants to eligible participants to fund a public purpose, service, benefit, or need.
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mandatory disclosure rule
o Expanded Scope: Applies to both recipients and subrecipients of grants.
lowers the standard of evidence (i.e., credible evidence) required to trigger a mandatory disclosure to the government; and
expands the categories of conduct which may be reportable.
o Updated Requirements: Now requires disclosure of:
Violations of criminal law
Civil False Claims Act violations
Violations related to performance, integrity, or compliance
o Timeline Clarification:
Must disclose "in a timely manner" once knowledge of the issue arises. Increased
o Enforcement Teeth: Failure to comply may now trigger award-specific remedies, debarment, or referral to DOJ.
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OIG at pre-award phase
* OIG investigations at the pre-award phase generally focus on fraud in the inducement
Pre-award risks
* Funding over time
* Conflicts of interest
* False statements
* False certifications
* Duplicate funding
* Inflated budgets
* Applicant suspended/disbarred
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OIG role at active award phase
o OIG investigations at the active award phase generally focus on fraudulent use of funds, theft, double billing, embezzlement, false claims, and falsified reports
Active Award Risks
* Unallowable, Unallocable, Unreasonable Costs
* Inadequate documentation
* General ledger differs from draw amount
* Burn rate
* No/late/inadequate reports
* Sub-awards, consultants, contracts
* Duplicate payments
* Excess cash on hand/cost transfers
* Unreported program income
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OIG role at end of the grant lifecycle
o OIG investigations focused on the end of the grant cycle identify patterns of fraud, including spending excess grant funds unrelated to the grant; falsely reporting expenditures in final progress reports and Federal financial reports; overlapping funding schemes in which grantees report out research to one Federal agency that had been previously performed for another funding program; and falsely reporting accomplishments or meeting milestones that they had not achieved to quality for final grant payments, additional grant increments, or new grants
Award end risks
* No/late final reports
* Cost transfers spend-out
* Financial adjustments
* Unmet cost share
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Criminal FCA
A federal crime to knowingly:
* Submit a false claim for payment to the government, or
* Cause someone else to submit a false claim.
Key Elements:
To convict under 18 U.S.C. § 287, the government must prove beyond a reasonable doubt that:
1. A claim was submitted to the federal government;
2. The claim was false, fictitious, or fraudulent;
3. The defendant knew the claim was false.
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how does FCA define knowingly
(1) has actual knowledge of the information;
(2) acts in deliberate ignorance of the truth or falsity of the information; or
(3) acts in reckless disregard of the truth or falsity of the information.
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materiality under FCA
o A defendant can have “actual knowledge” that a condition is material even if the Government does not expressly call it a condition of payment. What matters is not the label that the Government attaches to a requirement, but whether the defendant knowingly violated a requirement that the defendant knows is material to the Government's payment decision.
o Company engaged in fraudulent inducement, in violation of FCA; “materiality” under the FCA requires proof only that the defendant's false statements could have influenced the government's payment decision or had the potential to do so;
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penalties for criminal FCA
* Up to 5 years in federal prison per false claim
* Criminal fines (often substantial)
* Restitution to the government
* Criminal record (felony conviction)
* Can lead to suspension and debarment from federal programs
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civil FCA
* Submits a false claim for payment to the government, or
* Causes someone else to submit a false claim, or
* Makes a false statement material to a false claim.
* Enforcement:
o DOJ Civil Division or U.S. Attorney’s Office
o Often initiated by whistleblowers (qui tam actions)
Whistleblowers can receive 15–30% of recovered funds
Key Elements:
To violate the FCA, a person must:
1. Submit or cause submission of a claim to the government;
2. The claim must be false or fraudulent;
3. The person must have knowledge of the falsity (actual knowledge, deliberate ignorance, or reckless disregard).
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civil FCA penalties
* Treble (3x) damages — the government recovers three times its loss
* Civil penalties — $13,508 to $27,018 per false claim (adjusted annually)
* Cost of litigation
* Possible suspension or debarment from future awards
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benefit of civil FCA
* Civil FCA continues to be the more common and practical enforcement tool.
* Prosecutors prefer civil FCA due to its lower burden of proof and financial recovery mechanisms
* Why Agencies Love Civil FCA (especially for grants):
o Lower burden of proof (vs. criminal fraud)
Powerful financial recovery tool
Applies broadly across grants, contracts, loans, etc.
Drives compliance through fear of penalties
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benefit of criminal FCA
* Criminal False Claims Act requires specific intent by the Defendant to submit false information to the government. Civil False Claims Act requires general intent. Criminal False Claims Act is used more because many people can accidentally submit incorrect information to the government. In other words, going after those who intentionally engage in those actions is more beneficial.
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suspension
* Administrative actions (not criminal or civil) used by the government to protect federal funds — not to punish past misconduct, but to prevent future risk.
o Suspension:
Temporary action (usually up to 12 months)
Imposed when there’s adequate evidence of misconduct — but investigation or legal proceedings are still ongoing
Immediate — used to stop the bleeding
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debarment
* Administrative actions (not criminal or civil) used by the government to protect federal funds — not to punish past misconduct, but to prevent future risk.
o Debarment:
Longer-term exclusion (typically 3 years)
Imposed after a finding of wrongdoing based on a preponderance of evidence
May result from: Fraud, Failure to perform, Serious violations of grant terms, Criminal conviction, Civil judgment, False claims
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effects of suspension and debarment
o Barred from:
New federal grants
Federal contracts
Federal loans, benefits, assistance
o Applies government-wide — across all federal agencies
o Listed in SAM.gov (excluded parties list)
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award specific actions
* Award-specific enforcement is actions taken against the specific award involved in the violation. Corrective measures taken directly by the awarding agency (or pass-through entity) to address noncompliance, waste, or misconduct without going to court.
* They're governed primarily by:
o 2 CFR § 200.339 (Remedies for Noncompliance)
o 2 CFR § 200.340–200.343 (Closeout & Post-Closeout Remedies)
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examples of award-specific actions
o Written Warning = Documenting concerns; opportunity to fix
o Required Corrective Action Plan = Formal steps recipient must take to resolve issues
o Increased Reporting or Monitoring = More frequent reporting; site visits; added oversight
o Payment Withholding = Delaying or stopping reimbursements
o Cost Disallowance = Recipient must repay unallowable expenses
o Award Suspension = Temporarily halting work or payments under the grant
o Award Termination = Cancelling the grant early (whole or in part)
o Withholding Future Awards = Blocking future funding until issues are resolved
