Grants Part I Overview of Grants Management

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Grants Part IOverview of Grants Management

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Objectives

• Importance and history
• Introduce key concepts and definitions
• Introduce responsibilities of the state as a
  grantee and a grant manager
• Introduce laws, regulations and policies common
  to federal grants
• Introduce common federal forms

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Why is Grants Management Important?

• Grant programs are key elements of the federal
  mitigation policy
• Primary role of the SHMO

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WHAT IS A GRANT?

• An Agreement to award monies with specific
  conditions for a specific purpose.
• No repayment requirement if grant conditions are
  met.

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Historical Perspective

• Early 1980s, shift to states (New Federalism)
• Hundreds of federal agencies awarding billions
  in grants.
• New key policies (Government-wide rules)
  issued Single Audit Act (A-133)
• OMB grant admin rules

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Terminology/Glossary

• Awarding Agency
• Grantee
• Grant Manager
• Subgrantee/Applicant
• Determination
• Obligation/Deobligation
• Federal share
• Non federal share

• Draw downs and Payments
• Project cost
• Direct and Indirect Costs
• Administrative Costs
• Federal and Non-federal share
• Single Audit Act

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Common Elements of all Grants
Award
Governing Rules
Monitoring
Close Audit
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The Elements of the System
Award
Governing Rules
Monitoring
Closeout
Laws Regulations Policies Guidance Procedures
Applications, MOU or Grant Contract, Award
Conditions
Scope of Work Changes, Payments, Technical
Assistance
Final Payment, Site Visit, Records Retention,
Audit
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Common Roles Responsibilities

• Awarding Agency
• Grantee
• Subgrantee

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Roles and Responsibilities

• Awarding Agency FEMA
• Originator of the grant
• Grantee the state
• Recipient of the grant
• Subgrantee local, state or private non-profit
• Recipient of the subgrant

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The Strings Attached to the Award
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Moving Money through the System
State requests grant funds
Transfer funds to Smartlink
FEMA obligates funds into IFMIS
State sends payments to the subgrantee
State draws down funds from Smartlink
Subgrantee requests payment
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Roles of the State

• Grantee
• Grant Manager

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Grantee

• Applies for grants (either Disaster or Annual)
• Receives Award
• Performs work and follows conditions
• Grant Manager

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Grantee

• Manage program funds
• Calculate and request management costs
• Review and request subgrantee reimbursement

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Grantee

• Quarterly Reports
• Closes grant programs
• Retains Records
• Responds to audits

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Grant Manager

• Interprets guidance
• Sets policy
• Adopts Administrative Plan
• Develops application forms
• Reviews and ranks subgrant applications
• Recommends Awards

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Administrative Costs

• Pre application costs
• Preparation of applications
• Preparation of quarterly reports, final audits
• Overtime pay and per diem and travel expenses --
  NOT regular time for state employees
• Other Administrative Costs and Indirect Costs
• Allowances Fixed vs Calculation

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Administrative Funds

• Amount of funds depends on program
• HMGP Formula in addition to grant and subgrants
• FMA None allowed
• PDM Out of the grant amount
• More to come on this subject in Part II

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Management Costs

• State Management Costs
• Costs directly related to the management of the
  grant and subgrants not covered by the
  Administrative funds allowance
• Taken from the HMGP fund amount
• Eligible costs include
• Regular time salaries only of state personnel
  assigned to administer the Hazard Mitigation
  Grant Program
• Follow cost principles found in OMB Circular A-87
  or A-122

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Cost Share (THE MATCH)

• FEMA limited to 75 of project costs
• Non-federal share must be identified prior to
  grant agreement
• Cost share must meet all program requirements
• FEDERALIZED If 1 of federal funding used in a
  project, ALL funds for project must follow
  federal regulations, etc.

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Cost Share

• Resources
• State and/or local funds
• 3rd party in-kind contributions
• Private funds
• Some types of other federal funds (lose their
  federal identity once passed to state)

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Cost Share

• Eligible federal matches
• HUD CDBG monies
• ARC funds
• Indian Health Services
• Bureau of Indian Affairs funds
• Increased Cost of Compliance funds
• SBA and FHA loan funds

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Cost Share

• Cost Share is Global for the Disaster
• Cost share ratio for the funding of all combined
  projects for the disaster must be at least 25
• Allows funding single projects at 100 federal
  while other projects absorb the match
  requirements
• Difficult to implement and manage.

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Global Cost Share Example

• Project A 100,000 federal funding
• 0 non-federal match
• Project B 25,000 federal funding
• 75,000 non-federal match
• Total project costs 200,000
• Total federal funding 125,000 (63)
• Total non-federal match 75,000 (38)

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Governing Federal Policies

• 44 Code of Federal Regulations
• OMB Circulars
• Executive Orders
• FEMA Desk Reference
• Single Audit Act

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Governing State and Local Policies

• Grantee Requirements
• Reporting
• Budget bills and other laws
• Home rule policies
• Audit policies
• Administrative policies

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Federal Grant Guidance Rules

• Administrative Guidance
• 44 CFR Part 13 Uniform Administrative
  Requirements for Grants and Cooperative
  Agreements to State and Local Governments
• Audit Guidance
• 44 CFR Part 14 Administration of Grants Audits
  of State and Local Governments
• OMB Circular A-133 Audits of State and Local
  Governments

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Federal Grant Guidance Rules

• Uniform grant process
• OMB Circular A-102
• OMB Circular A-97 to determine cost effective
• Applicable Cost Principles
• Use OMB Circular A-87 to determine applicable
  cost principles for state, local, or Indian
  tribal government
• Applicable Cost Principles (PNP)
• Use OMB Circular A-122 to determine applicable
  cost principles for private nonprofit
  organization
• Use A-21 Educational Institutions

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Reports by Number Name

• SF 269 Financial Status Report
• SF 269A Financial Status Report (short form)
• SF 464 Supplement Request
• FF 20-176 Outlay Report and Request for
  Reimbursement for Construction Programs
• PMS 272 Federal Cash Transactions Report
  (produced by SmartLink)

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Summary

• Importance and history
• Introduced key concepts and definitions
• Introduced responsibilities of the state as a
  grantee and a grant manager
• Introduced laws, regulations and policies common
  to federal grants
• Introduced federal common forms