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Subrecipients and the New
Uniform Guidance
Amanda Humphrey, Partners Healthcare
Dan Gilbert, Northeastern University
Anita Mills, Evisions
Overview
• Stewardship
• Why Subrecipient Monitoring?
• Definitions
• Key Uniform Guidance changes
• Subrecipient Monitoring
• Streamlining Subrecipient Monitoring
Stewardship
Definitions Uniform Guidance
200.74 Pass-through entity
Non-federal entity that subs to a subrecipient.
200.93 Subrecipient
A non-Federal entity that receives a
subaward from a pass-through
entity to carry out part of a Federal
program.
200.92 Subaward
Award provided by the pass through entity to a subrecipient.
200.330 Subrecipient and Contractor
Contractor
Vendor
Goods & Services
Many Purchasers
Competitive Environment
Not Subject to Compliance
Requirements
• Goods & services ancillary to
the Federal Program
•
•
•
•
Are they trying to avoid the
compliance requirements?
Subrecipient
• Programmatic decision
making and carrying
out a portion of the
Federal Award
• Carrying out a portion of the
Federal Award
1. Subaward document
2. Risk Assessment
3. Special Terms and Conditions – When Appropriate
4. Monitor Subrecipient Activities
5. Monitor Performance Goals
6. Verify every Subrecipient has A-133 audit
7. Audits; Onsite Reviews may necessitate the subrecipients records be updated
8. Enforcement of Non-Compliance
Foreign Subrecipients
• Questions about Export Controls
• Shipping equipment, biological materials, encrypted software
or other materials internationally
• Collaborate with researchers or organizations outside the US
• Foreign Nationals participate in the project
• Research performed at Non-US site
• Faculty taking equipment or encrypted software, select agents
abroad
• Does this research involve military use or dual use
200.331 (a) 1 Subaward Document Requirements
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•
•
•
•
•
•
•
•
•
•
Subrecipient DUNS Number
Federal Award Identification Number: FAIN
Total amount awarded to date to Subrecipient
Total amount awarded to Subrecipient for budget period
Total Amount of the Federal Award
Federal Award project description – FFATA
R&D (Yes/No)
Indirect cost of the Federal award
Approved Federal F&A Rate of Subrecipient
Access to subrecipients records
Terms and Conditions of Close-Out
200.332 - Fixed Amount Subawards
• Fixed Price Subawards cannot exceed the
Simplified Acquisition Threshold (currently
$150K)
• Prior Approval is required before issuing
subaward
200.200.201 (b) - Fixed Amount Subawards
• Periodic reports must be established
• Prior Approval from Federal Awarding Agency or
Pass-Through Entity
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–
–
–
Principal Investigator
Project Leader
Scope
Effort
• Multiple Fixed Amount Subawards may be issued to
the same subrecipient
– Each Award must be $150k or less
– Each Award must have its own deliverable and scope
Institutional Changes – Fixed Price
Internal Controls
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•
•
•
•
Awards not issued when cost sharing is involved
Certifications
Activities Completed
Subaward certifications must be received before a close-out
Delivery schedule is reasonable and followed
Contract/Agreement Language Changes
• Final invoices and/or closeout documents will need to be certified
• Periodic Reporting/Deliverable Required
Additional Guidance
Citation
Subject Area
200.112
Conflict of Interest
200.201 & 200.400
Profit and Fixed Price Awards
200.305
Prompt Payment of Subrecipients
200.331
Subrecipients Financial and Progress Reports
200.331 & 200.414
Subrecipient and F&A Rates
200.328
Timeframe for Program and Financial Reports
200.512
Verifying / Reviewing Audits
Checks and Balances
Requirement
How to Check it
Sub PI Debarred or Suspended
https://www.sam.gov
200.112 Conflict of Interest
FDP COI Clearinghouse:
http://sites.nationalacademies.org/PGA/f
dp/PGA_070596.htm
200.331 & 200.414 Verify Sub F&A Rate
Get copy of the F&A rate agreement
200.512 Verifying / Reviewing Audits
Current A-133 Audit:
http://Harverster.census.gov
E-Verify (federal contracts only)
Work with HR to complete
FFATA Reporting
FFATA info uploaded:
https://www.fsrs.gov/
Subrecipient Monitoring
• Has Uniform Guidance changed Subrecipient
Monitoring?
• Subrecipient Monitoring
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–
–
–
Vague requirements
Leaves lots of room for interpretation
Need to manage efficiently and creatively
Minimize risk
Subrecipient Monitoring in Context
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•
•
•
•
UG implementation and changes
A-133
Being selective about vetting
Risk assessment
Monitoring through invoices
Driver for Audit Review
• OMB Circular A-133 Section 3-M requires PTE to
ensure:
– Subrecipients have met audit requirements of
A-133
– Audit is completed within 9 months of the end of
the audit period
– Subrecipient takes timely and appropriate
corrective action on audit findings
Process Examples: Partners & Northeastern
• Controller or Subrecipient Manager reviews all
Subrecipient audits
• Federal Audit Clearinghouse (FAC) & EIN
• Foreign and For-Profits are most time consuming
because they are not listed on FAC
• https://harvester.census.gov/facweb/Default.aspx
• A form does not obfuscate the need to check FAC
because PTE has to validate information is correct
• Mailbox: [email protected]
Moving Away from Collecting / Completing A-133 Forms
• Leverage Federal Audit Clearinghouse
– EIN and/or Entity’s Name
• Collect via Statement of Intent (SOI)
• FDP Subaward Form 3B
• Contract Templates
– FDP template, Attachment 1:
• “Subrecipient assures PTE that it complies with A-133 and that it
will notify PTE of completion of required audits and of any adverse
findings which impact this subaward.”
Thinking About Forms
• A-133 should be sufficient validation
– Contains details on veracity of systems
– Completed by outside party
– Information doesn’t change depending on who is
completing the form and how closely they are reading it
• If you must require forms
– Ask to complete annually at institutional level
– Offer re-certification of prior year’s form
Risk Assessment
Finding Classification
Key Points
Deficiency in Internal Control
Design or operation of the control does not allow
institution to readily identify and correct or prevent
mistakes on a timely basis.
Significant Deficiencies
A deficiency in operations and supporting policies
that is less severe than a material weakness, yet
requires serious institutional attention.
Material Weakness
A more pervasive failure that could materially
misstate a portion or all of the institution’s financial
reporting. Could indicate a lack of policies to
support internal controls.
Always check the auditor’s summary to confirm how the independent auditor classified
the institution (ie high / low risk).
UG Focus on Early Internal Control
1. Internal control, as defined in accounting and
auditing, is a process for assuring achievement of an
organization's objectives in operational effectiveness
and efficiency, reliable financial reporting, and
compliance with laws, regulations and policies.
2. It is a means by which an organization's resources are
directed, monitored, and measured. It plays an
important role in detecting and preventing fraud and
protecting the organization's resources… (wikipedia)
Higher Risk Subrecipients
Usually:
• Foreign Entity
• Smaller Organization with lack of prior federal
funding experience and/or internal controls or
prior experience with Pass-through Entity
• “Entities with biennial audits, ‘unclean’ audits,
and material weaknesses cannot be low risk,
even with approval” Huron Consulting Group
Risk Assessment; NU Example
High Risk Subs
More Frequent Monitoring:
1. Programmatic
2. Invoices
More Frequent Communication:
1. PI and ORAF keep detailed records of communications regarding
unsatisfactory performance by the subrecipient.
2. PI Report any unsatisfactory performance to ORAF promptly
Site Visits
Stringent Review of Audits:
1. “Auditees must review and respond to and address all audit findings
as quickly as possible, and not wait until audit reports are
submitted.” (Huron Education)
2. Take prompt action when instances of noncompliance are identified.
Annual Monitoring
1.
2.
3.
Review and File Annual Single Audit Report if
available and document the review.
If there is a finding related to federal awards,
you must file the management response to the
finding.
Get Annual Assurances from Higher Risk Subs
(Handouts)
PI’s Approve Invoices (electronically or by paper)
and programmatic progress reports.
Example: “By signing below, I approve payment
of this invoice and attest that the charge appear
reasonable and the progress to date on this
project is satisfactory”
Single
Audit
Report
Example
fCOI Forms
• FDP Clearinghouse
– http://sites.nationalacademies.org/PGA/fdp/PGA_070596
– You don’t have to be a member to register
– Use DUNS to validate Subrecipient – add to SOI
• FDP Template, Attachment 2
– Certification language
– Confirm via check box
Thinking about Forms
Hooray for Forms!
No More Forms!
Ensures information is current…
But not consistent
It includes project specific information
including IRB/IACUC information
This is in the Proposal and/or can be
added to the Subaward
I am passing the burden to Subrecipient
Forms require additional resources on
both sides – to complete and review
I am passing the burden to Subrecipient
If form is documented as a required part
of process and it is missing or information
conflicts between proposals, could be a
finding – failure to comply with own
internal controls
I am passing the burden to Subrecipient
Forms can slow down the process, which
can be a burden to the Prime – delays in
invoicing could mean additional carry
forward requests/ scrutiny at Progress
Report
29
Moving Away from Forms
• Use Contract Templates
– Example: fCOI certification
– Flow down expanded authorities
– Boston Children’s Hospital FDP template
• IRB / IACUC Approval
• Build a website
– http://navigator.partners.org
• Expand FDP Clearinghouse to include A-133 and
other institutional facts
Moving Away from Forms
• Update your SOI
– Include EIN and DUNS
– Include link to website
• Leverage PI to assist in Subrecipient Monitoring
– Attestation that sub has completed anticipated work at
time of progress report submission
THANK YOU!
Questions?
Please contact us:
Anita Mills, Evisions, Solutions Consultant
[email protected]
Amanda Humphrey, Partners Healthcare, Manager
[email protected]
Dan Gilbert, Subcontract Manager, Northeastern University
[email protected]