# Presentation: 593251

## Introduction to  Grants and Cooperative Agreements (PY220)

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

## A/OPE/FA Staff

- Georgia K. Hubert, Director, _[hubertgk@state.gov](mailto:hubertgk@state.gov)_, 703-812-2526
- Kimberly S. Butler, Grants Policy Analyst,
-    _[butlerKS2@state.gov](mailto:butlerKS2@state.gov)_,  703-516-1754
- Jennifer K Ceriale , Grants Policy Analyst, _[cerialejk@state.gov](mailto:cerialejk@state.gov)_,  703-516-1686

## A/OPE/FA Staff

- Phyllis A. Swann, Grants Policy Analyst, _[swannpa@state.gov](mailto:swannpa@state.gov)_, 703-516-1685
- Gregory M. Young, Grants Policy Analyst, _[younggm@state.gov](mailto:younggm@state.gov)_,  703-516-1988

## Module 1

- Introduction to Assistance
- 1.1 Historical Use of the Grant Mechanism
- 1.2 The Federal Grant and Cooperative Agreement Act
- 1.3 Categories of Grants
- 1.3.1 Discretionary Grants
- 1.3.2 Mandatory Grants

## Grants Historically

- Historically, the United States Government had 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 contract.

## Grants Historically 

- 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.

- Grants Historically

## Getting and Giving

- 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.
- A 1972 report by the Commission on Government Procurement (COGP) recommended that legislation clarify the differences between procurement and assistance and distinguish between grants and cooperative agreements.

## The Federal Grant and Cooperative Agreement Act of 1977 

- Distinguish between the types of relationships the Federal Government enters into with recipients of federal awards
- Bring about uniformity in the selection and use of procurement contracts, grants and cooperative agreements
- The act was not intended to change the nature of the relationships authorized in existing legislation, only to require agencies to use instruments that match the relationships into which they enter.
- Agencies must have specific statutory authority to enter into grants or cooperative agreements

- The Federal Grant and Cooperative Agreement Act of 1977

## Choosing the Right Instrument

- Sometimes program personnel want to issue a contract rather than a grant because they believe a contract gives them greater control over a project.
- In this course you will learn how to manage a grant to achieve the appropriate level of control.
- Faced with the paperwork and competition requirements associated with procurement, program officials may try to use a grant rather than a contract.
- There are specific rules and legislative authorities that determine which instrument is appropriate.

## The GAO Speaks Out on Acquisition	 

- -GAO (Government Accountability Office), Principles of Federal Appropriation Law, 2d ed., at 10-11

- The GAO Speaks Out on Acquisition

## The GAO Speaks Out on Assistance

- -GAO (Government Accountability Office), Principles of Federal Appropriation Law, 2d ed., at 10-11

## Contract, Grant or Cooperative Agreement? 

- Contract, Grant or Cooperative Agreement?

## 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.

## 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.

## Cooperative Agreement:

- An agreement in which the Federal Government provides funding or a thing of value authorized by public statute and plays a substantial role in its development. In a cooperative agreement, the government is a partner with another organization.
- Example: A cooperative agreement between the Department of State and the Kennedy Center to administer a cultural program sending American artists overseas.

## 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.

## Mandatory Grants

- 	Mandatory grants _MUST_ be made to organizations which meet statutory eligibility and compliance requirements; and agency implementing regulations.

## 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.

## Module 2

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

## CFR Sections Applying to DoS Grants

- These sections of the CFR apply to Department of State grants:
- _[22 CFR Chapter I, Part 135](http://www.access.gpo.gov/nara/cfr/waisidx_99/22cfr135_99.html)_ – Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments
- _[22 CFR Chapter I, Part 137](http://www.access.gpo.gov/nara/cfr/waisidx_99/22cfr137_99.html)_ – Government-wide Debarment and Suspension (Nonprocurement) and Government-wide Requirements For Drug-free Workplace (Grants)

## CFR Sections Applying to DoS Grants

- These sections of the CFR apply to Department of State grants:
- _[22 CFR Chapter I, Part 138](http://www.access.gpo.gov/nara/cfr/waisidx_99/22cfr138_99.html)__ – New Restrictions on Lobbying _
- _[22 CFR Chapter I, Part 145](http://www.access.gpo.gov/nara/cfr/waisidx_99/22cfr145_99.html)__ – Grants and Agreements with Institutions of Higher Education, Hospitals, and Other Non-profit Organizations _

## 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](http://www.cfda.gov/)_

## The Role of Congress

- Financial assistance is provided to Federal government agencies through congressional 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.

## The Office of Management and Budget (OMB)

- _[http://www.whitehouse.gov/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.

## DoS Statutory Authorities

- The key public diplomacy legislation is found in the following authorities:
- _[Smith-](file:///../../younggm/Local%20Settings/Temporary%20Internet%20Files/OLK4D/Resources/Smith_MundtAct.pdf)__[Mundt](file:///../../younggm/Local%20Settings/Temporary%20Internet%20Files/OLK4D/Resources/Smith_MundtAct.pdf)_ — 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](file:///../../younggm/Local%20Settings/Temporary%20Internet%20Files/OLK4D/Resources/FulbrightAct.pdf)_ — The Mutual Educational and Cultural Exchange Act of 1961, P.L. 87-256, as amended, 22 U.S.C. 2451, et seq.

## Some additional authorities:
Support for East European Democracy Act of 1989, as amended (SEED Act) 
Foreign Assistance Act of 1961 
State Department Basic Authorities Act 
A more comprehensive list is available on the Office of Procurement Executive website. 

- DoS Statutory Authorities

- Some additional authorities:
- _[Support for East European Democracy Act of 1989](http://www.state.gov/p/eur/rls/rpt/23580.htm)__, as amended (SEED Act) _
- Foreign Assistance Act of 1961
- State Department Basic Authorities Act
- A more _[comprehensive list](http://aope.a.state.gov/authorities/authorities.rtf)__ is available on the Office of Procurement Executive website. _

## Linking Assistance Instruments to Planning

- Each mission develops a Mission Performance Plan (MPP) 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.
- For example: The MPP goal is to increase host-country government support for U.S. counter-terrorism policies. PAS might give a grant to a noted think-tank specializing in security issues to support an international conference, including U.S. speakers, on regional terrorism issues. The conference would stimulate debate and media coverage of the issue, highlighting U.S. involvement

## Linking Assistance Instruments to Planning

- Good grants tie clearly and directly to an MPP goal. They require significant commitments by the host-country individuals and organizations involved.
- Working with a prestigious and broadly recognized organization increases the odds of success.
- Establishing clear lines of responsibility for the grantee is essential; so is determining exactly how and under what circumstances the embassy will be involved.
- In most cases, the activities supported by a grant should lend themselves to coverage by the media, to magnify their effects.
- Locally employed staff can be a good source of suggestions for effective grants.

## Module 2 Review Questions

- Explain some of the limitations on a Federal agency’s authority to award grants.
- Summarize the rulemaking process, as prescribed in the Administrative Procedures Act.
- Briefly describe the Code of Federal Regulations, and identify the title that contains guidelines pertinent to grants awarded by the Department of State.
- What is the Catalogue of Federal Domestic Assistance (CFDA)?
- Explain the role of the Office of Management and Budget (OMB).
- What are the two key Department of State public diplomacy authorities?

## Module 3

- Selecting the Appropriate Instrument
- 3.1 The Definition of Substantial Involvement
- 3.1.1 Guidelines for the Use of Cooperative Agreements
- 3.2 Distinguishing Procurement and Assistance Relationships

## Substantial Involvement

- Substantial involvement, associated with a cooperative agreement, is essentially sharing participation and responsibility for the project’s success. This can entail:
-  collaboration,
-  consultation,
-  and intervention.
- There is no specific definition or congressional guidance as to the meaning of “substantial involvement."

## Both grants and cooperative agreements are assistance instruments. The level of involvement of the Federal Government is what distinguishes them.

|  Use a grant agreement when the principal purpose  is: 
To transfer a thing of value 
To carry out a public purpose of support or stimulation 
Authorized by lawand 
Substantial involvement is not expected: A grant recipient can expect to run the project without federal agency collaboration, participation or intervention.  |  Use a cooperative agreement when the principal  purpose is: 
To transfer a thing of value 
To carry out a public purpose of support or stimulation 
Authorized by lawand 
Substantial involvement is expected: A cooperative agreement recipient can expect federal agency collaboration or participation in the project and/or close agency oversight and control beyond routine federal stewardship.  |
| --- | --- |

- Both grants and cooperative agreements are assistance instruments. The level of involvement of the Federal Government is what distinguishes them.

## Differences Between Grants and Contracts

| Grant |   | Contract |
| --- | --- | --- |

| Advance payment allowed if appropriate | Payment | Pay for delivery after receipt  |
| --- | --- | --- |
| Competed technical / program is primary focus  | Competition  | Competed price is given more weight  |
| Grantee can terminate  | Termination of agreement | No contractor right to terminate |
| Deliverable is a report or completion of project  | Deliverable | Product or service required  |
| OMB Circulars | Regulation and rules  | FAR (Federal Acquisition Regulation)  |

## Module 3 Review Questions

- 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.

## 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

## Mysteries, Myths and Misconceptions of Being a Grants Officer

## No one ever looks at these.

##   Washington approved the program so all is well. 

##   I’m just the conduit for the funds.

## It’s only $500.

## The Ambassador said to do it.

## Grants are just gifts.

##   How do I know if I’m a grants officer? 

##   But I had a warrant at my last post! 

##   What reports?

##   Wine isn’t really considered alcohol in this country.

## It really wasn’t
entertainment 
because the 
event 
was boring.  

- entertainment
- because the
- event
- was boring.

##   What’s monitoring got to do with me?   

## 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.

## Grants Officer Roles Continued	

- Grants Officer Roles Continued

- A grants officer’s 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.

## Program Officers Roles

- Negotiate 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.

## Program Officers RolesContinued

- 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 delivery of grant items and prepare receiving reports and/or approve drawdown and reimbursement requests for payment.

## Grants Officer Representative Roles

- A GOR typically:
- monitors the recipient’s performance,
- reviews payment requests,
- recommends grant amendments and
- maintains a liaison between the recipient and grants officer.
- A GOR’s appointment, made by the grants officer, is for a specific grant or blanket designation.
- All assistance agreements over $10,000 must be approved by the regional bureau.

## Responsibilities not Delegated

- _The Grants Officer Representative shall not: Direct the recipient to undertake ANY activity which will change the_:
- Total award amount
- Project purpose, description or content
- Project period
- Administrative terms or conditions of the award

## 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.

## 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

## 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. 

- 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.

## 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.

## 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. 

- Request for Applications (RFA)

- 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.

## 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. 

- 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.

## Four Criteria for Exception to the Requirement for Full and Open Competition.  

- 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.

## 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.
- When should a written request for applications or proposals be made, and what should it contain?
- 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.

## Module 6

- The Application and Review Process
- 6.1 Grant Proposal Review
- 6.2 Pre-Award Responsibility Determination (Due Diligence)
- 6.3 Pre-Award Survey
- 6.4 High Risk Recipients
- 6.5 Cost Sharing

## Grant Proposal Review

- A grant proposal must include:
- a project narrative,
- the need for assistance,
- an outline of the problem,
- anticipated results of the project,
- details on the organization and a budget.
- In evaluating a grant proposal, the grants officer should:
- determine if the proposed project addresses an MPP 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.

## 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.

## Pre-Award Survey

- 	A pre-award survey is required for new recipients and if there is any question of the recipient’s capability to perform including the following:
- The Grants Officer or Program Officer is uncertain about the prospective recipient’s 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.

## 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.

## Cost Sharing 

- 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.

- Cost Sharing

## 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 cost sharing.

## 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

## Negotiating and Awarding

- All elements of a legally binding instrument are met:
-    Competent parties
-    Proper subject matter
-    Sufficient consideration
- _Consent of minds_:
- When two parties to an agreement (contract) both have the same understanding of the terms of the agreement. This mutual comprehension is essential to a valid contract. All elements of the award clearly and coherently express the specific understandings of both parties:
-    Purpose
-    Program description
-    Period of agreement
-    Allowable line items
-    Award amount

## Relating Funding Level to Grant Activities

- Prior to finalizing the award, the Grants Officer must ensure the scope of the project matches the amount funded.
- Neither the Grants Officer nor the grantee should assume that additional grant funds would be available in the future to make up any difference in the originally approved budget.

## Establishing the Period of Performance

**Effective date** is the date specified in the grant agreement for which expenditures may be charged to a grant.
**Expiration date **is the date specified in the award for all activities to be completed.
- The **period of performance **is the time between the effective date and the expiration date.

## Terms and Conditions

- Standard terms and conditions must be used in all of your grants.
- Three parts to the terms and conditions
- State Department standard terms and conditions
- Bureau/post specific terms and conditions
- Specific grant terms and conditions.

## 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 Officer’s reputation and career may very well depend on effective grants management

## Reporting RequirementsContinued

- If grantees have not submitted 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.

## Financial Reports

- ALL of your grantees MUST submit financial reports.
- For overseas awards you should always require receipts.
- Your grant language should specify the need for receipts
- If a receipt is required but not obtained, the grantee should certify that the stated cost is correct and that no receipt was available.

## 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

## 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.

## 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

## 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.

## Program Changes

- Changing political or economic situations in a foreign country may permit a deviation from your original grant.
- It is the Grants Officer’s responsibility to ensure that any necessary amendments to permit any change to the program is issued in a timely fashion.

## 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

## Disposal of Property by Grant

- Redistribution
- Transfer
- Sale
- Donate to another organization if
- Has little or no commercial value or
- If the costs of handling and storage would exceed the profits of sale or
- It is in the interest of PD programs

## “No Cost” Extensions 

- Possible reasons to grant a “No Cost” extension:
- More Time
- Program Changes
- Reallocation of funds
- Changes in line items by more than 10%

## 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.

## Recipient Accountability 

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

## Monitoring

- Strategies for monitoring grant agreements include:
- Dividing the project into phases
- Conducting site visits
- Asking to see the recipient’s
- Records
- Property
- Staff

## Payment Procedures  

- Recipients are typically paid in advance if they meet specific financial management criteria. For recipients that do not meet these standards the following may be used:
- cash advances
- working capital advances
- cash reimbursements
- Cash advances should be limited to minimum amounts needed
- Payments should not be made more frequently than monthly
- Unless justifiable and reasonable

## Official Grant Files  

- Official grant files must be maintained in accordance with GPD 23 using the Federal Assistance File form DS4012.
- DS4012 includes a checklist of things that should be in a complete grant file.
- The **folder** can be ordered from Manila
- The **file** can be downloaded from the A/OPE website

## Official Grant Files Continued Complete files should contain:

- Certification of funds and authority
- Pre-solicitation clearances
- Successful applicant’s proposal
- Evaluation documentation
- Pre-award survey/documentation
- Negotiation record
- Award correspondence
- Award
- Amendment documentation
- Payment record/copies of invoices/vouchers
- Program, financial and property reports
- Grant Officer Representation letter
- Any other necessary correspondence
- Closeout documentation

## 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.

## Module 9

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

## Suspension of Payments 

- The grants officer may suspend payments on an award only if
- the recipient fails to comply with the project requirements or reporting,
-  or if the recipient or sub-recipient is delinquent in a debt to the U.S.

## 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.

## 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.

## 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

## Module 9 Review Questions

- Explain the qualifications necessary for a grantee to receive cash advances, and the limitations on cash advances.
- Explain when reimbursement payments should be made.
- Define a working capital advance.
- Under what two 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.

## 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

## 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.

## 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 should request disposition instructions from the Department.

## 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.

## 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.

## 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?

## Module 11

- Ethics Introduction/General Principles
- 11.1 Gifts from Outside Sources
- 11.2 Conflicting Financial Interests
- 11.3 Remedies
- 11.4 Impartiality in Performing Duties
- 11.5 Outside Employment
- 11.6 Misuse of Position

## General Principles

- Executive Order  12674
-    Define obligations of public service

## Gifts From Outside Sources

- Prohibited Sources
-    - official action
-    -  interests affected    	substantially by
- 		performance

## Exceptions to the ban on Gifts

- A gift valued at $20 or fewer, provided that the total value of gifts from the same person is not more than $50 in a calendar year.
- A gift motivated solely by a family relationship or personal relationship.
- A gift based on an employee’s or his spouse’s outside business or employment relationships, including a gift customarily provided by a prospective employer as part of bona fide employment discussions
- Certain political activities
- Gifts of free attendance, if in interest of agency
- Modest refreshments, items of intrinsic value

## Conflicting Financial Interests

- Grants officers may not engage in any financial dealings that directly enrich them or members of their families or organizations with which they are affiliated.
- Exemptions can include direct or imputed financial interests if diversified.

## Remedies

- Recusal
- Disqualification

## Impartiality in Performing Official Duties

- Conduct transactions with adherence to equitable business practices
- Financial interests/ Covered Relationships

## Existence of Covered Relationship

- A person with whom employee has or seeks a business, contractual, or other financial relationship
- A person who is a member of the employee’s household or is a relative with whom the employee has a close personal relationship

## Covered Relationship

- A person for whom the employee’s spouse, parent, or dependent child serves or seeks to serve as an officer, director, trustee, general partner, agent, attorney, consultant, contractor, or employee
- Any person for whom the employee has within the last year served as any of the above
- Any organization (other than a political party) in which the employee is an active participant

## Seeking outside Employment

- Cannot participate in grant awards which affect financial interests of person or entity with which he is seeking employment
- If in doubt, consult agency ethics official

## Misuse of Position

-   Grants Officers are **prohibited** from using their positions for personal gain
-   Grants Officers cannot serve own financial interests

## 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.

## 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._