Source: https://inside.ewu.edu/ogrd/compliance/uniform-guidance/
Timestamp: 2020-07-11 20:16:20
Document Index: 382173081

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compliance: Uniform Guidance, accordion title page
Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards
1. Ref.: 2 CFR Part 200
2. Effective Date: July 2, 2015
4. Key Words: administrative requirements; cost principles; audit requirements; Federal award; allowable costs; fundamental premesis
On July 1, 2015, Eastern Washington University (EWU) implemented the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal awards to non-Federal entities. These comprehensive requirements and principles, called The Uniform Guidance, were issued by the Office of Management and Budget (OMB) and are contained in 2 CFR Part 200.
The Uniform Guidance is applicable in whole or in part to Federal awards that include grants, cooperative agreements, and both cost-reimbursement and fixed-price contracts received by EWU directly from a funding agency or from a pass-through entity. The Cost Principles contained in Subpart E of the Uniform Guidance apply to all awards regardless of the funding mechanism. These principles must be used by EWU in determining the allowable costs of work performed by EWU under a Federal award.
Five of the seven fundamental premises used in the application of the Cost Principles (2 CFR Part 200.400) directly relate to the responsibilities of EWU faculty, staff, and students carrying out projects funded by Federal awards and the administration of these awards by the Office of Grant and Research Development as well as the relevant areas of business and finance within the university. The applicable fundamental premises are as follows:
EWU is responsible for the efficient and effective administration of the Federal award through the application of sound management practices.
EWU assumes responsibility for administering Federal funds in a manner consistent with underlying agreements, program objectives, and the terms and conditions of the Federal award.
EWU, in recognition of its own unique combination of staff, facilities, and experience, has the primary responsibility for employing whatever form of sound organization and management techniques may be necessary in order to assure proper and efficient administration of the Federal award.
The accounting practices of EWU must be consistent with these cost principles and support the accumulation of costs as required by the principles, and must provide for adequate documentation to support costs charged to the Federal award. The application of the cost principles contained in Subpart E are consistent with the application of EWU’s existing internal accounting polices and practices.
Because EWU both educates and engages students in research, the dual role of students as both trainees and employees contributing to the completion of Federal awards for research must be recognized in the application of these principles.
Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards - Conflict of Interest
1. Ref.: 2 CFR Part 200.112, 45 CFR Part 50 Subpart F, RCW Chapter 42.52.020
2. Effective Date: April 21, 2015
3. Originating Office/Agency: Office of Management and Budget, U.S. Public Health Service, Washington State Legislature
4. Key Words: administrative requirements; responsible conduct in research; conflict of interest; financial conflicts of interest; FCOI; objectivity in research; investigator responsibilities
Eastern Washington University (EWU) has the responsibility to ensure that all faculty, staff, and any other person who conducts research activities under the auspices of the University adhere to ethical standards in managing potential conflicts of interest in an effort to promote objectivity in research. Conflicts of interest may include financial conflicts, or conflicts of a competing interest.
2 CFR 200.112, specifies that Federal awarding agencies must establish conflict of interest policies for all Federal awards, and that the non-Federal entity and pass though entity must disclose in writing any conflict of interest in accordance with the Federal awarding agency policy. In addition, the Washington State Legislature as part of the Ethics in Public Service Law, stipulates that no state officer or state employee may have an interest, financial or otherwise, direct or indirect, or engage in a business or transaction or professional activity, or incur an obligation of any nature, that is in conflict with the proper discharge of the state officer's or state employee's official duties.
In 2011, the United States Public Health Service (PHS) revised and implemented stronger Financial Conflict of Interest regulations, which continues to be the standard that many sponsors, both public and private adhere to. The purpose of the regulation is to promote objectivity in research by establishing standards for design, conduct, and reporting of scholarly activities and research. This policy applies to all investigators on a project, which may include collaborators and contractors.
Recognizing that each Federal awarding agency may have a different policy regarding conflicts of interest, EWU has implemented a standard policy in a manner consistent with the guidance to ensure compliance. The Conflict of Interest Policy will apply to all awards regardless of the funding mechanism.
Summary of Conflict of Interest policies and procedures:
EWU will have in effect an up-to-date, written, enforced policy that complies with all applicable regulations which is available via the University website.
EWU will maintain a current enforceable written policy for disclosing and managing all conflicts of interest for each award regardless of the funding source.
The Office of Grant and Research Development (OGRD) will certify in each application for funding submitted that the Institution:
Will fully comply with the requirements of the regulations that apply to the funding entity.
EWU has the responsibility and authority to take actions necessary to manage any potential financial conflict of interest relating to all research activities at the institution.
The OGRD is the primary point of contact and is responsible for managing matters related to financial conflicts of interest.
The OGRD will provide guidelines to identify financial or other types of conflicting interests related to proposed research or project.
Each investigator will be held accountable for disclosure of any potential conflict of interest.
All significant financial conflicts of interest of an investigator must be disclosedprior to the submission of a proposal for funding.
If a Significant Financial Interest(SFI)is identified and determined to be a Financial Conflict of Interest(FCOI), it must be satisfactorily managed, reduced, or eliminated prior to the expenditure of funds on any subsequent award.
If a new reportable SFIdevelops at any time following the submission of a proposal but prior to expenditure of funds, the filing of a new disclosure is also required. The OGRD will also adhere to the sponsor’s reporting schedule as applicable.
Each investigator will be responsible for regularly updating their disclosure status as required by the University to ensure compliance.
For PHS funded research or for sponsors who follow PHS policy, the OGRD will make certain required information available concerning FCOI’s held by senior/key personnel to the public either via the university website, or in response to a written request within five business days of the request.
For any sub award or pass through entity, the OGRD will incorporate as part of a written agreement, terms that establish whether the FCOI policy of the awardee institution or that of the subrecipient will apply to subrecipient investigators and include time periods to meet SFI disclosure if applicable, as well as FCOI reporting requirements.
EWU will designate appropriate institutional official(s) to solicit & review disclosure statements from each investigator planning to participate in, or who is participating in research.
The OGRD will maintain records of all investigator disclosures of financial interests and the Institution’s review of and response to such disclosures, (whether or not a disclosure resulted in the institution’s determination of FCOI) and all actions under the Institution’s policy or retrospective review, if applicable for the required period of time as indicated by the sponsor.
EWU will designate appropriate institutional official(s) to develop management plans that specify the actions that have been, and shall be, taken to manage a FCOI.
The OGRD will inform each investigator of the:
Regulation(s);
Investigator’s responsibilities regarding disclosure of SFIs
For Federally Funded research, the OGRD will require that each investigator complete FCOI training:
Prior to engaging in research related to any federally funded project or sponsor who follows PHS policies;
When the institution finds an investigator is not in compliance with EWU’s policy or management plan.
The Uniform Guidance, issued by the Office of Management and Budget (OMB), contained in 2 CFR Part 200
Washington State Legislature Ethics in Public Service
Washington State-Activities incompatible with public duties
PHS Policy 42 CFR Part 50 Subpart F
302-05: Eastern Washington University Ethics in Research Policy
Cost Considerations Expand
Part of the university’s post award administration responsibilities for grants and contracts includes a determination as to the allowability, reasonableness, and allocability of costs charged to each Federal program. The formal approval of Federal grant and contract expenditures by the Office of Grant and Research Development provides verification that the basic cost considerations have been met.
2 CFR Part 200.403 – Allowability of Costs
2 CFR Part 200.404 – Reasonableness of Costs
Whether the cost is of a type generally recognized as ordinary and necessary for the operation of the university or the proper and efficient performance of the Federal award;
The restraints or requirements imposed by such factors as sound business practices, arm’s length bargaining, other laws and regulations, and terms and conditions of the Federal award;
Whether the university significantly deviates from its established practices and policies regarding the incurrence of costs, which may unjustifiably increase the Federal award’s cost.
2 CFR Part 200.405 – Allocability of Costs
2 CFR Part 200.407 – Prior Written Approval (to assure reasonableness and allocability of costs)
Cost Sharing or Matching Expand
1. Ref.: 2 CFR Part 200.306; Subpart E
4. Key Words: Cost sharing; matching; third party; verifiable; allowable; comparable; market value
This document provides guidance on the contribution of cost sharing or matching (hereafter “cost sharing”) to a Federal award. Under Part 200.306 of the Uniform Guidance, cost sharing may be considered in award decisions if it is both in accordance with Federal agency regulations and specified in the notice of funding opportunity or request for proposals. The criteria for the consideration of cost sharing as an award factor must be explicitly described by the agency in its funding announcement.
In many cases cost sharing is not required or expected. For Federal research proposals, cost sharing is neither expected nor can it be used as a factor in the merit review of the proposal. Additionally, it is the university’s practice not to contribute cost sharing to a Federal award unless it is required by the agency or needed to establish and validate institutional commitment to a Federal program. This is because cost sharing is auditable and accounting for and verifying cost sharing adds to the administrative and reporting burden for both Project Directors or Principal Investigators and the Office of Grant and Research Development (OGRD).
When cost sharing is obligated to a Federal program, in the form of in-kind contributions, cash, and/or third-party donations, it must meet the following criteria:
Is verifiable from the university’s records;
Is not included as a contribution for any other Federal award;
Is necessary and reasonable for accomplishment of project or program objectives;
Is allowable under the Cost Principles (Subpart E) of the Uniform Guidance;
Is not paid by the Federal Government under another Federal award, except when federal statutes allow for Federal funds to be applied to cost sharing requirements; and
Is provided for in the approved budget of the Federal award.
The following requirements must be met in order for contributed resources to be legitimate forms of cost sharing:
Be allowable and valued in accordance with the Cost Principles in Subpart E (this includes compliance with Part 200.430 Compensation-personal services and Part 200.431 Compensation-fringe benefits);
Not include costs that are otherwise unallowable under the Federal award or budget;
Using unrecovered indirect costs or administrative costs only with the prior approval of the Federal awarding agency;
Using volunteer services from third-party professional/technical personnel, consultants, or un-skilled labor only if they are an integral and necessary part of an approved Federal program;
Rates for third-party volunteer services are consistent with those paid for similar work by the university or in instances where the required skills are not found at the university, consistent with rates paid in the labor market in which the university competes for the kind of services involved;
Using fringe benefits for third-party volunteer services only if they are reasonable, necessary, allocable, and otherwise allowable;
When a third-party organization furnishes the services of an employee, the value of such services must be at the employee’s regular rate and may include fringe benefits consistent with the above section;
Include indirect costs from the third-party organization only if it has an approved Federally negotiated indirect cost rate or rate in accordance with Part 200.414;
Using donated property only if the value assessed is consistent with the fair market value of the property at the time of donation;
Using the value of donated space only if it is consistent with the fair rental value of comparable space; and
Using the value of loaned equipment only if it is consistent with the fair rental value of comparable equipment.
Verifiable documentation of cost sharing obligated to a Federal award and its timely submission to the OGRD are the responsibility of the Project Director or Principal Investigator and must be properly carried out for cost accounting purposes. This also includes documentation from collaborating partners who contribute goods, services, or equipment to a Federal program. Cost sharing should be recorded and reviewed on at least a monthly basis – the Project Director/Principal Investigator should not wait until the project is ending to start gathering the required supporting documentation. Cost sharing forms and further guidance on developing methods and systems to support and report cost sharing may be obtained from the post-award staff person in the OGRD assigned to monitor the Federal award.
Faculty and staff contributing time to a Federal award need to keep a daily record of the time they contribute unless a consistent and actual percentage of time is being paid by the non-Federal funds of the university for work on a Federal program and is documented on the employee’s payroll action form (PAF). It is also prudent for faculty contributing time to a Federal program to include this effort in the research/service activities of their academic year, faculty work plan to further validate their contributed time. Faculty and staff who commit time to a Federal program are subject to Level of Effort Reporting required under Uniform Guidance (Part 200.430) and their time will be recorded on a Personnel Activity Report. Project Directors/Principal Investigators are encouraged to review the companion document on level of effort reporting and certification to further understand this requirement.
If student time paid from non-Federal sources is used as match, copies of their time sheets may be used as documentation of time worked. Student volunteer time may be used to satisfy cost sharing subject to the provisions identified above, however, the Project Director/Principal Investigator needs to develop a system whereby student volunteers authenticate their time spent on the Federal program.
While the financial reports provided by the university adequately identify the transactions related to the Federal funding, it is the Project Director’s/Principal Investigator’s responsibility to compile accurate records for in-kind contributions and expenses paid by other sources of funding consistent with the information contained in the university’s financial system. This is because records showing the value of donations or contributed costs are subject to audit to the same degree as Federal funds expended. Copies of cost sharing documentation must be submitted to the OGRD as part of the financial reporting and close out process for the Federal award.
False Claims Act Expand
1. Ref.: 2 CFR Part 200.415, 2 CFR Part 200.113, U.S. Code Title 18, Section 1001 and Title 31 U.S. Code §§ 3729-3733
4. Key Words: false claims, research misconduct; mandatory disclosures; research terms and conditions, Federal award; allowable costs; fundamental premises; falsification or fraudulent statements
This document provides guidance for faculty, staff and others who perform research at Eastern Washington University (EWU), and summarizes their responsibility to comply with the False Claims Act, to promote ethical conduct in research and to ensure that government dollars are expended appropriately.
As the certifying entity, EWU is responsible for maintaining integrity in all aspects of research and scholarship, and ensuring compliance to all applicable policies, regulations, and grant terms and conditions. The Office of Grant and Research Development is the primary point of contact and maintains oversight to ensure compliance with the requirements of all applicable laws and regulations.
2 CFR Part 200- Uniform Administrative Requirements, Cost Principles, and Audit, section 200.415 requires certification by an authorized official of the institution that guarantees all financial information submitted is free from false, fictitious, or fraudulent information. In addition, section 200.113 mandates all non-federal entities and applicants for funding to disclose in writing all violations of Federal criminal law involving fraud, bribery or gratuity violations potentially affecting a Federal award. Furthermore the guidance cites the U.S. False Claims Act, U.S. Code Title 18, Section 1001 and Title 31 U.S. Code §§ 3729-3730 in defining false and fraudulent claims, and establishes liability for any person who knowingly presents, or causes to be presented, a false claim to the U.S. Government for payment. The law also outlines the penalties associated with any false claim finding.
The Federal False Claims Act is intended to prevent and detect fraud, waste and abuse of government funds. It is a violation for any person working with federal funds who:
Falsely certifies the type or amount of property to be used by the Government;
Certifies receipt of property on a document without completely knowing that the information is true;
Knowingly buys Government property from an unauthorized officer of the Government, and;
Knowingly makes, uses, or causes to be made or used a false record to avoid, or decrease an obligation to pay or transmit property to the Government.
Principal Investigators (PI), Project Directors (PD), and other key personnel who engage in these actions can be liable for civil or criminal penalty. While there is a strong focus on unlawful financial activities, false claims can also be related to research misconduct, which is defined as fabrication, falsification, or plagiarism in proposing, performing, or reviewing research, or in reporting research results.
Sponsored research projects can be the basis of a False Claims case. These cases can stem from expenses charged to a grant that were not allowable, allocable, reasonable or consistent, as well as that performed outside the scope of the intent of the proposal.
False claims/research misconduct may include:
Falsifying, fabricating or excluding research data and/or results
Plagiarism which consists of any attempt to receive credit for the work of another, including taking credit for someone else's work, ideas, or methods, copying the writing of others without proper acknowledgment, or otherwise taking credit falsely
Abuse of confidentiality, which can include the use or release of information given to one under the understanding of confidentiality
Over-charging for time, costs and other expenses associated with a grant, improper or false effort certification
Falsifying purchase orders for equipment or materials
Using grant funds for unrelated research
Using grant funds for personal use or expenses
Improper conflicts of interest by principal investigators or key personnel
Falsifying progress reports or other documentation
Violations of research-related property rights: such as deliberately taking or destroying the research related property of others (e.g., data, research papers, notebooks, equipment, or supplies).
All submissions for external funding at EWU require PIs/PDs to sign a Certification and Assurance form, attesting that all information is true, accurate and free from false statements, and that the PD or PI will comply with all regulatory requirements and participate in mandatory training as applicable to the award terms and conditions.
General counseling services relating to patent and copyright matters, such as advice on patent and copyright laws, regulations, clauses, and employee intellectual property agreements (see also Professional Service Costs – 2 CFR Part 200.459).
The university is responsible for exercising special care in determining reasonableness where the royalties may have been arrived at as a result of less-than-arm’s length bargaining, such as royalties paid to persons, including corporations, affiliated with Eastern Washington University; royalties paid to unaffiliated parties, including corporations, under an agreement entered into in contemplation that a Federal award would be made; and royalties paid under an agreement entered into after a Federal award is made to a non-Federal entity. Further information on “reasonableness” may be found in the Office of Grant and Research Development’s memorandum on “cost considerations” and in 2 CFR Part 200.404 of the Uniform Guidance.
In addition, any case involving a patent or copyright formerly owned by the university, the amount of royalty allowed must not exceed the cost which would have been allowed had the university retained title thereto.
Project Directors and Principal Investigators that develop intellectual property as a result of a Federal award are also responsible for compliance with the university’s Intellectual Property Management Policy (302-04) and for not disclosing proprietary or confidential information in accordance with the university’s Ethical Standards (901-01) and Social Media (203-04) policies.
Level of Effort Reporting Expand
2 CFR Part 200 – Uniform Administrative Requirements, Cost Principles, and Audit, section 200.430 Compensation for Personal Services. Time and effort reporting is required to meet the Federal mandate of certifying that the salaries associated with a Federal award are accurate, allocable, and reasonable. Level of effort reports must meet the Standards for Documentation of Personnel Expenses identified in section 200.430.
All salaries and wages charged to a Federal award, including Federal pass-through received as subrecipient agreements to Eastern Washington University, must be documented in a manner consistent with the requirements of the Uniform Guidance (2 CFR Part 200). The Principal Investigator (PI) or Project Director (PD) is responsible for certifying the activity and effort for which an employee has been compensated after-the-fact. EWU utilizes a monthly report called a Personnel Activity Report (PAR) to certify the effort of all non-hourly employees. EWU Grant and Research Development staff provides training to all PIs or PDs with Federal awards that fall into this category on the procedures for this reporting process.
Each employee’s PAR reflects how the total compensation for each month was allocated among index/fund codes and the type of activity. The “Total Activity” is NOT in relation to EWU’s in-load or overload percentages, which are also expressed as full time equivalent, or FTE, but instead reflects the percentage of “total compensation received for the month.”
Cost sharing represents that portion of the total project costs of a Federal award that are not borne by the Federal government. The university or other non-Federal third parties pays these costs.
If an individual’s salary is listed as a cost sharing or matching commitment on a Federal award, the OGRD will send a “Cost-Sharing Effort Inquiry Request” form to the PI. The PI needs to complete this form according to the dollar amounts specified in the approved Federal award listing the start and end dates of the project, the index the employee is being paid from, the percentage of time being contributed to the Federal award, and the Federal award’s index. The OGRD uses the information on this form to prepare the monthly PAR forms for the individuals who are contributing cost sharing.
Review the form for accuracy and sign it certifying that the information accurately reflects how their time was spent.
NOTE: If the actual percentage of time spent on the Federal award differs from that listed on the PAR, the employee should revise the percentage(s) on the PAR to reflect the actual percentage of time spent on each activity. If a revision is made, the OGRD staff will assist in having the employee’s HR Payroll Action Form (PAF) modified to reflect the actual effort percentages. Payroll distributions to each Federal award are done initially based on budget estimates but may need to be adjusted to agree with the PAR for the final payroll distribution.
If the employee is no longer employed with EWU, the PI/PD or department chair will need to indicate, “Resigned” or “No longer employed” on the signature line and the PI/PD or the department chair will need to sign the second line.
The OGRD records the receipt of all PAR forms and retains these documents according to the university’s record retention schedule, seven years from the end of each fiscal year.
PARs must account for 100% of employees’ compensated time.
PARs must be signed by the employee or by another responsible individual with knowledge of the employee’s activity when the employee is unavailable to sign.
Merit Review, Application Requirements, and Agency Review of Risks Posed by Applicants Expand
1. Ref.: 2 CFR Part 200.204-205, False Claims Act - 31 U.S.C. §§ 3729–3733
4. Key Words: Merit review process; risk assessment, financial integrity information; financial stability; history of performance, fabrication, falsification; plagiarism; suspension; debarment
Scope and Merit Review
In preparing a proposal in response to a Federal funding opportunity, Eastern Washington University faculty and staff should be aware that each Federal agency is responsible for designing and executing a merit review process for evaluating the quality of each application received and extent to which it responded to the agency’s funding criteria. Under Uniform Guidance this process must be described or incorporated by reference in the applicable funding opportunity or request for proposal/application announcement. Proposal narratives and budgets that are incomplete or do not respond to the evaluation criteria will not score high enough in the merit review process to receive funding or may be disqualified.
In addition, in order to avoid disqualification from the merit review process, applications must also meet the submission deadline, font, page limit, margin, and other technical requirements of the submission process. Therefore, draft proposals must be received by the Office of Grant and Research Development 10 working days before the submission deadline. This timeline allows Grants Office staff adequate time to work with Project Directors/ Principal Investigators to make sure the final application is responsive in all components.
Prior to making a Federal award, the agency is required by 31 U.S.C. 3321 and 41 U.S.C. 2313 to review information eligibility qualification and financial integrity information on the university found at the following Office of Management and Budget repositories:
Federal System for Award Management (SAM) exclusions;
The Department of the Treasury’s centralized “Do Not Pay” system; and
The government wide list of debarred and suspended persons and organizations.
If a proposal or application scores high enough in the merit review process to be recommended for funding, under Uniform Guidance, the Federal agency must evaluate the risks imposed by the university before an award is made. This evaluation may incorporate the results of the evaluation of the university’s eligibility and/or the quality of its application. Further, the Federal funding agency may impose special conditions in its awards that correspond to the degree of risk posed by each applicant organization.
The agency may consider the following items in determining the degree of risk:
Quality of management systems and ability to meet management standards;
History of performance including the university’s record of managing Federal awards, timeliness and compliance with reporting requirements, conformance to terms and conditions of previous awards, and the extent to which any previously awarded amounts will be expended prior to future awards;
Reports and findings from program specific and university audits;
The university’s ability to effectively implement statutory, regulatory, or other requirements imposed on the university; and
Whether or not the university or any of its principals are debarred, suspended, or otherwise excluded from or ineligible for participation in a Federal program.
False Claims (see also specific Memorandum on False Claims)
Project Directors, Principal Investigators, or other key personnel who make or engage in false claims are subject to debarment, suspension, or exclusion from participation in a Federal program as well as subject to civil or criminal penalty.
While there is a strong focus on unlawful financial activities, false claims can also be related to research misconduct, which is defined as fabrication, falsification, or plagiarism in proposing, performing, or reviewing research, or in reporting research results.
False claims/research misconduct that impose risk to program personnel and the university may include:
Falsifying a grant application in order to secure a grant.
Falsifying, fabricating or excluding research data and/or results.
Plagiarism which consists of any attempt to receive credit for the work of another, including taking credit for someone else's work, ideas, or methods, copying the writing of others without proper acknowledgment, or otherwise taking credit falsely.
Abuse of confidentiality or nondisclosure agreements including the use or release of information given to one under the understanding of confidentiality.
Over-charging for time, costs and other expenses associated with a grant, improper or false level of effort certification.
Falsifying purchase orders for equipment or materials.
Using grant funds for unrelated research.
Using grant funds for personal use or expenses.
Improper conflicts of interest by Principal Investigators or key personnel.
Falsifying progress reports or other documentation.
Failing to comply with applicable government safety and other regulations.
Violations of research-related property rights such as deliberately taking or destroying the research-related property of others (e.g., data, research papers, notebooks, equipment, or supplies).
The Federal awarding agency may impose specific award conditions as needed under the following circumstances:
The results of the agency’s review of risk imposed by the university;
If a Project Director/Principal Investigator and/or the university has a history of failure to comply with the general or specific terms and conditions of the Federal award;
If a Project Director/Principal Investigator fails to meet expected performance goals as described in the Federal award; and
When an applicant or recipient is not otherwise responsible.
Therefore, the Project Director or Principal Investigator is ultimately responsible for the proper conduct of the work (performance of the project activities) and for the administrative and financial management of the project. While the university is the legal recipient of awards and has overall responsibility for the performance of the funded activities and the proper use of Federal funds, the university cannot meet its responsibilities to the agency unless the PD/PI meets his/her responsibilities. Only the PD/PI can truly know if expenses charged to a Federal award are legitimate, project-related costs. Only the PD/PI can assure performance of the technical aspects of the project and completion of the required technical reports. The university is responsible for maintaining adequate fiscal controls and ensuring that fiscal policies are applied consistently. Therefore, management of a Federal award is the joint responsibility of the PD/PI and the OGRD. A failure to comply with a Federal award’s terms and conditions subjects the PD/PI and the university to the specific award conditions and civil or criminal penalty described above as well as any sanctions that might be imposed on an employee for violating EWU policies and procedures.
Noncompliance with Federal Requirements Expand
1. Ref.: 2 CFR Part 200.338-339; 2 CFR Part 200.207
4. Key Words: specific conditions; remedies; termination; sanctions
If Eastern Washington University (EWU) fails to comply with Federal statutes, regulations, or the terms and conditions of a Federal award, the Federal agency that made the award may sanction the university. Such sanctions range from imposing additional terms and conditions to a Federal program or, more seriously, taking action to terminate the award or suspend or debar the university from future awards. The responsibility for ensuring compliance with the Federal requirements pertains to EWU as a whole but such compliance is also the specific obligation of employees who are responsible for carrying out a Federal program as well as those who provide oversight for an award.
Initially, the Federal funding agency may impose additional conditions on the award in situations of noncompliance. The specific conditions are found in 2 CFR Part 200.207 and include provisions for requiring additional, more detailed financial reports, further project monitoring, and establishing extra prior approvals. However, if the Federal funding agency determines that the noncompliance cannot be addressed by imposing additional conditions, one or more of the following actions may be taken.
2 CFR Part 200.338 – Remedies for Noncompliance
(a) Temporarily withhold cash payments pending correction of the deficiency by the university or more severe enforcement by the Federal funding agency.
(b) Disallow all or part of the cost of the activity or action not in compliance (This includes costs supported by Federal funds as well as applicable matching or cost-sharing).
(c) Suspend or terminate the Federal award.
(d) Initiate suspension or debarment proceedings as authorized under 2 CFR Part 180 - OMB Guidelines to Agencies on Government-wide Debarment and Suspension.
(e) Withhold further federal awards for the project or program determined to be noncompliant.
(f) Carry out other remedies that are legally available.
2 CFR Part 200.339 – Termination
When a Federal award is terminated in whole or in part, both the Federal funding agency and EWU are responsible for compliance with the requirements of 2 CFR Part 200.343 – Closeout and 2 CFR Part 200.344 – Post-closeout Adjustments and Continuing Responsibilities. A Federal award may be terminated in part or in whole under the following conditions:
(a) If EWU fails to comply with the terms and conditions of the Federal award.
(c) With the consent of EWU in which case both EWU and the Federal funding agency must agree on the termination conditions, the effective end date, and, in the case of partial termination, the portion of the project to be terminated.
(d) By EWU upon written notification to the Federal funding agency identifying the reasons for termination, the effective date, and, in the case of partial termination, the portion of the project to be terminated.
Principal Investigators, Project Directors, and EWU employees responsible for administering or managing a Federal grant or contract can help ensure compliance with Federal regulations and the award terms and conditions by becoming familiar with the information contained in the EWU Post Award Manual: A Guide for Principal Investigators and Project Directors.
Employees responsible for Federal grants and contracts should also be mindful of their obligations to comply with the following requirements:
The False Claims Act S. Code Title 18, Section 1001 and Title 31 U.S. Code §§ 3729-3730.
Conflict of Interest (2 CFR Part 200.112) and Promoting Objectivity in Research (45 CFR Part 50, Subpart F) and the State Ethics in Public Service Law (RCW Chapter 42.52.020).
Level of Effort Reporting (2 CFR Part 200.430).
Responsible Conduct of Research (guidance provided by the Office of Research Integrity at https://ori.hhs.gov/ori-introduction-responsible-conduct-research).
Prior Approval and Revision of Budget and Program Plans Expand
1. Ref.: 2 CFR Part 200.306-308, 332, 407, 430(7), 439(2), 440, 441, 442, 447(2), 456, 458, 474, et al.
4. Key Words: Administrative requirements; budgeting; budget amendment; prior approval; change in the scope; change in objective
This document identifies the conditions under which budgetary and/or programmatic changes to a Federal award made to Eastern Washington University (EWU) require prior approval from the funding agency. The Project Director or Principal Investigator is responsible for ensuring that a Federal award is carried out in accordance with the approved budget and proposal narrative and with the terms and conditions of the award. In some cases budget and project changes are warranted after an award is made in order to improve the quality and/or efficiency of the project or because of unforeseen circumstances such as an extended absence of the Project Director or Principal Investigator.
Not all changes to a project’s scope or budget require prior approval. Some changes do not require prior approval from the funding agency but require prior approval from the EWU Office of Grant and Research Development with a notification from this office to the funding agency. Significant changes require prior approval of the funding agency and generally result in a modification to the Federal award and/or terms and conditions. Listed below are the primary circumstances under which EWU must seek prior approval from the Federal funding agency. Other situations for which prior approval is required may be found in additional sections of 2 CFR Part 200 (see references above).
2 CFR Part 200.306 – Cost Sharing or Matching
Unrecovered indirect costs, including indirect costs on cost sharing or matching, may be included as part of cost sharing or matching only with the prior approval of the funding agency. Unrecovered indirect costs means the difference between the amount charged to a Federal award and the amount which could have been charged to the Federal award under Eastern Washington University’s approved negotiated indirect cost rate (of 61.4% of salaries/wages).
2 CFR Part 200.307 – Program Income
If the terms and conditions or the regulations governing a Federal award do not specify or give prior approval for how program income is to be used, the following apply:
Deduction. Ordinarily program income must be deducted from total allowable costs to determine the net allowable costs. Program income must be used for current costs unless the Federal funding agency authorizes otherwise;
Addition. With prior approval, program income may be added to the Federal award and must be used for the purposes and under the conditions of the Federal award.
2 CFR Part 200.308 – Revision of Budget and Program Plans
The University is required to report deviations from the budget plan, project scope, or objectives, and request prior approvals from Federal awarding agencies for one or more of the following program or budget-related reasons:
Change in the scope or the objective of the project (even if there is no associated budget revision requiring prior written approval).
Change in key personnel specified in the proposal or Federal award.
An absence from the project for more than three months or a 25% reduction in time devoted to the project by the Project Director or Principal Investigator.
The inclusion of costs that require prior approval as specified in the award terms and conditions.
The transfer of funds budgeted for participant support costs to support other categories of expense.
Unless already approved in the original award, the subawarding, transferring, or contracting any work under a Federal award.
Changes in the approved cost sharing or matching provided by the university.
The need to carry forward unobligated budget balances to subsequent periods of performance.
Expanded Authorities Under 2 CRF Part 200.308
Except for a change of scope or objective, the Federal funding agency is authorized, at its option, to waive prior written approvals. Such waivers may include authorizing the University to do the following:
(1) Incur pre-award project costs 90 calendar days before the effective date of the Federal award. Pre-award costs are only allowed by EWU when the Project Director or Principal Investigator can demonstrate that they are necessary for efficient and timely performance of the scope of work.
(2) Initiate a one-time extension of the period of performance by up to 12 months. For one-time extensions, the University must notify the Federal awarding agency in writing with the supporting reasons and revised period of performance at least 10 calendar days before the project end date specified in the Federal award. This one-time extension may not be exercised merely for the purpose of using unobligated balances.
The Executive Director of the Office of Grant and Research Development is responsible for exercising the expanded authority provisions of Federal awards.
2 CFR Part 200.439(2) – Equipment and Other Capital Expenditures
Capital expenditures for special purpose equipment are generally allowable provided that items with a unit cost of $5,000 or more have the prior written approval of the Federal funding agency.
Procurement Standards Expand
1. Ref.: 2 CFR Part 200.318-326; OMB Circular A-110
2. Effective Date: July 1, 2017
4. Key Words: Procurement; methods of procurement; contract cost and price; contract provisions
The Eastern Washington University Office of Procurement and Contracts, along with the Office of Grant and Research Development, is responsible for ensuring that all purchases using Federal funds are made in accordance with Federal requirements. The university currently is in a grace period for implementing the procurement standards set forth in sections 2 CFR Part 200.318-326 of the Uniform Guidance until July 1, 2018. Therefore, purchases made with Federal funds before July 1, 2018, may be made in accordance with the procurement requirements of OMB Circular A-110 as specified in Part C, Post-Award Requirements, Sections .40-.48. However, during the grace period EWU is responsible for documenting why it decided to comply with the procurement standards contained in OMB Circular A-110.
Effective July 1, 2018, the university will comply with the Procurement Standards as defined in the Uniform Guidance and summaries of those requirements will be updated at that time. One major revision to the original Uniform Guidance that should be noted is that the micropurchase threshold has been increased from $3,500 to $10,000 for institutions of higher education. If Project Directors or Principal Investigators have questions or need further guidance on procurements with Federal funds, please contact Mr. Doug Vandenboom, Director of Purchasing and Contracts, at dvandenboom@ewu.edu or 359-6604.
1. Ref.: 2 CFR Part 200.307
On occasion, a Federal award made to the university will also generate program income and, in general, the university is encouraged to earn income to defray the program costs associated with a Federal award. Any program income earned as a result of a Federal award is subject to the following requirements as outlined in the Uniform Guidance.
Use of program income. Program income must be used for the purposes and under the conditions of the Federal award. Program income generated by a Federal program must be used to finance the non-Federal share of the project or reduce the Federal agency’s share of expenses. Program income that the university did not anticipate at the time of award must be used to reduce the Federal award and/or the original university contributions authorized rather than used to increase the funds committed to the Federal program.
Income earned from intellectual property owned by the university. Income derived from license fees and royalties for copyrighted materials, patents, patent applications, trademarks, and inventions made under a Federal award to which 37 CFR part 401 (Rights to Inventions. . .Made Under Government Awards, Contracts and Cooperative Agreements) is applicable is generally not subject to the other administrative requirements regarding program income. Therefore, under such circumstances the university has no obligation to the Federal agency unless the Federal regulations or award state otherwise.
Project Directors and Principal Investigators have a responsibility to consult with their unit heads and the Office of Grant and Research Development (OGRD) if they plan to identify activities in a proposal for a Federal award that will generate program income. The charging of fees and for services to third-parties participating in a Federal program may be subject to other university requirements such as those contained in EWU Policy 202.04 – University Fee Approval and EWU Policy 202-03 – Commercial Activities of the University. The OGRD will help direct proposers to the appropriate university resources and personnel for the necessary approvals and help with the inclusion of program income in the proposal budget and budget narrative. As noted above, expenditures of program income must be consistent with costs that are otherwise allowable under the Federal award and Uniform Guidance.
Title to Property, Equipment and Supplies Expand
Real property, intangible property, equipment and supplies acquired using Federal funds under a Federal award, unless otherwise specified by the funding agency, are the property of Eastern Washington University (EWU) and, as appropriate, are inventoried and tagged by EWU’s Inventory Control office. Federal awards that finance tangible and intangible property, equipment and supplies normally contain terms and conditions that vest title of these items to the grantee. Under no circumstances do items purchased through a Federal award become the personal property of the Principal Investigator/Project Director (PI/PD) or any other grant or contract personnel. It is, however, the PI’s/PD’s responsibility to manage the use and maintenance of any property purchased with Federal funds including ensuring that it is only employed for the specific purposes of the Federal grant or contract.
As the end of the project period nears, the PI/PD should consult with the Office of Grant and Research Development to determine the appropriate disposition of tangible property, equipment and supplies. Title or ownership will generally transfer to the university, but not always. Depending on the terms and conditions of the Federal award, the sponsor may request return of property or allow obsolete or unused equipment to be sold, in which case the PI’s/PD’s department retains the proceeds. In the case of unused supplies exceeding $5,000 in total aggregate value that are not transferred to another program, the Federal government must be refunded the amount of their value. In some instances, the Federal funding agency may require documentation of property inventory or require the university to submit an annual report itemizing equipment on hand acquired by grant funds even after the grant has ended.
2 CFR Part 200.313 – Equipment
(a) Title. Title to intangible property acquired under a Federal award vests upon acquisition in the university. The university must use that property for the originally-authorized purpose, and must not encumber the property without approval of the Federal funding agency. When no longer needed for the originally authorized purpose, disposition of the intangible property must occur in accordance with the provisions in 2 CFR Part 200.313 –Equipment, paragraph (e).
(c) The university is subject to applicable regulations governing patents and inventions, including government-wide regulations issued by the Department of Commerce at 37 CFR Part 401, “Rights to Inventions Made by Nonprofit Organizations and Small Business Firms Under Government Awards, Contracts and Cooperative Agreements.”
(d) The Federal government has the right or obligation to: