Uniform Guidance – Funding Frontline Blog

by Timika RileyJuly 18, 2023

Unlocking the Secrets of the Uniform Guidance: The Often-Overlooked Allowable Cost for Federal Grants Training

Many nonfederal entities may focus on securing federal financial assistance and executing their grant-funded project. However, an often-overlooked cost principle in the uniform guidance can significantly impact an organization’s success in the grant award lifecycle – using grant funds as an allowable cost for staff training and professional development.

By investing in staff training, entities can improve their compliance with grant regulations, optimize their grant management processes, limit risks, and ultimately increase their chances of success in securing future grant funding. Let’s explore the importance of staff training as recipients aim to progress through the federal grants lifecycle successfully and how nonfederal entities can leverage federal grant funds to invest in their staff to serve the public through their grant-funded projects better.

According to the Subpart E cost principles of the uniform guidance (2 C.F.R. Part 200), the cost item provision for memberships, subscriptions, and personal activity costs at §200.454 states: ”the cost of a nonfederal entity’s subscription to business, professional, and technical periodicals are allowable,” adding that “the cost of training and education provided for employee development is allowable.”

Of course, you should check with your program director, finance officer, or awarding agency to ensure no restrictions in the approved grant budget or the award documents preventing such subscriptions or training. If subscriptions or training are not covered under your approved budget, you may request a budget amendment or check to determine if these costs can be included within your indirect costs pool.

Above all, consider that a better-trained staff can encourage improved award administration and fewer audit findings and/or risks of improper payments, which could threaten access to current or future federal funding for your programs.

In conclusion, this often overlooked provision related to training is pivotal for entities seeking to maximize their success in the grant award lifecycle. By leveraging federal grant funds to invest in staff training, organizations can improve compliance with grant regulations, optimize grant management processes, and enhance their capacity to secure future grant funding. With Thompson Grants, federal grant professionals can benefit from expert training options, including Federal Grants Forums, workshops, eLearning courses, webinars, and custom group training programs. These resources help your team stay compliant and provide valuable continuing education credits, allowing your organization to excel in the competitive world of grant funding. If you’re considering a Thompson Grants subscription or training program, remember that you can charge the cost to a federal grant, making it even more accessible for your organization. Don’t ignore this important provision; it can help you gain training opportunities to propel your organization to new heights in federal grant management.

Additional Resources:

Intro To Indirect Cost Recovery Webinar

The Dos and Don’ts of Cost Allowability

This blog post is not official or legal guidance. Recipients should consult the federal awarding agency regarding whether the Uniform Guidance applies to a particular federal award. Subrecipients should consult with the pass-through entity. Thompson Grants is not a grantmaking organization and does not award grants.

by Timika RileyJuly 12, 2023

Preserving Trust and Accountability: The Importance of Grants Integrity for Every Grants Professional

Integrity is the foundation of any successful organization, especially in grants management. Grants are a critical source of funding for many nonfederal entities, and taking steps to oversee grants administration effectively is essential to ensuring that funds are used correctly, efficiently, and in compliance with all applicable regulations. When applying for a grant or cooperative agreement, nonfederal entities generally know their applications will be judged on recipient risk and the proposal’s merits. Recipient integrity is just as important when awarding agencies evaluate who will receive an award for financial assistance.

In this blog, we will discuss the importance of maintaining grant integrity and the steps that program managers and grant managers can take to ensure they maintain proper program compliance integrity. Readers should be aware that the Office of Management and Budget (OMB) is considering potential revisions to the uniform guidance and other guidance within Title 2 of the Code of Federal Regulations during 2023, which could ultimately affect requirements related to program integrity once this year’s revisions become effective.

Upholding Ethical Standards: The first step in maintaining grant integrity is ensuring that your entity supports ethical standards in all operations. This includes adhering to the highest standards of conduct regarding financial reporting, recordkeeping, and hiring and training personnel. Ethical conduct is essential for maintaining the trust of donors and the public and ensuring that your organization follows all applicable regulations and guidelines.

Complying with Regulations: Grants are subject to a myriad of regulations and policies at the federal, state, and local levels. As a result, program and grant managers must stay current on these regulations and policies and take steps to ensure that their organizations comply with all applicable rules. Failure to comply with regulations can result in losing funding, negative press coverage, and even legal action.

Proper Governance: Organizations like non-profits must have appropriate governance structures to maintain grant integrity. This includes having a board of directors overseeing the organization’s finances, operations, and compliance with regulations. Good governance also requires that entities have a robust system of internal controls in place to prevent fraud, waste, and abuse.

Grant Reporting: Accurate and timely reporting is a crucial component of grants management. Grant managers must ensure that all reporting requirements are met and that all financial and programmatic information is accurate and complete. Failure to meet reporting requirements can result in the loss of funding and can damage an entity’s reputation.

Ongoing Monitoring: Finally, maintaining grant integrity requires constant monitoring of an entity’s operations, finances, and compliance with regulations. This includes conducting regular internal audits and risk assessments and taking corrective action when necessary. By staying vigilant and taking proactive steps to maintain integrity, grant managers can help ensure that their entity uses grant funding for its intended purposes and comply with all applicable regulations.

In conclusion, ensuring grant integrity is crucial for any entity that receives grant funding. Upholding ethical standards, complying with regulations, implementing appropriate governance mechanisms, conducting accurate and timely reporting, and constant monitoring are all vital elements of maintaining grant integrity. To help grant managers maintain compliance and stay aware of the latest grant developments, visit thompsongrants.com to access our resources. Thompson Grants offers valuable tools and information to help organizations manage grants confidently and successfully. Explore our resources now and take your grant management to new heights!

Please note: This blog post is not official or legal guidance. Recipients should consult the federal awarding agency regarding whether the Uniform Guidance applies to a particular federal award. Subrecipients should consult with the pass-through entity. Thompson Grants is not a grantmaking organization and does not award grants.

by Timika RileyJuly 12, 2023

Stay Ahead of the Curve: Top Strategies for Meeting Grant Requirements and Maintaining Compliance in 2023

It is vital for recipients of federal financial assistance to meet regulatory requirements and ensure the effective and efficient use of federal funds for their intended purpose ― to benefit the public. While this can be daunting, non-compliance with the Uniform Guidance can result in costly penalties, such as the revocation or reduction of grant funding, and the potential suspension or debarment from federal funding opportunities in the future, which could damage an organization’s reputation. In this blog, we will explore the importance of successful compliance in managing federal grants and how to achieve it.

Here are five key steps for successful grant compliance:

Understand the Grant Agreement: Before managing any grant funds, it’s crucial to understand the grant agreement fully. The grant agreement is a legal financial assistance instrument between a federal awarding agency and a nonfederal entity. Before grantees accept award funds, they should carefully review the terms and conditions of the grant, including the reporting and compliance requirements and any potential exceptions under the grant program as allowed by federal statute. Understanding the grant agreement increases the likelihood that grant recipients will comply with the terms and conditions of the award and encourage program success.
Implement a Compliance Plan: Once the grant agreement is understood, grantees should develop an internal compliance plan. A compliance plan, in writing, provides an overview of the grant requirements, the timeline for each requirement, personnel responsibilities, the importance of recordkeeping, how compliance will be monitored, and the potential consequences of an audit finding for noncompliance.
Provide Regular Training: According to an annual grants managers’ survey conducted by REI Systems, NGMA, and George Washington University, grant management training remains a top priority for organizations. All employees involved in grant-funded activities should receive regular training on grant requirements and the organization’s compliance plan. Training should include reviews on overall grant compliance, financial management, procurement, sub-recipient monitoring, and record-keeping; this training is especially critical for new employees. Even highly experienced professionals in the field should regularly attend training to stay current with the ever-changing regulatory environment and to remain compliant.
Maintain Accurate Records: Expenditures of federal funds require grantees to keep comprehensive records for all grant-related activities. Documents must be complete and detailed so the organization can efficiently respond to audits or requests for information from funding agencies. Additionally, accurate recordkeeping increases transparency and accountability in the grantee’s organization between agencies and the public.
Conduct Regular Monitoring and Internal Audits: The Uniform Guidance at §200.501 requires nonfederal entities to have a system of internal controls to ensure compliance with federal regulations and the terms of the grant agreement. Although not required under the Uniform Guidance, internal audits can be a critical part of maintaining a robust internal control system, and organizations should consider conducting such internal reviews regularly to ensure the effectiveness of the control environment. Grantees should review the requirements outlined in the grant agreement and consider the organization’s risk assessment when determining the frequency of internal audits.

Complying with federal grant regulations is of utmost importance to ensure the success of a grant program. By following these five critical components outlined in this blog, grantees can better manage their federal funds and reduce the risk of penalties or serious single audit findings. It is important to remember to continuously plan, communicate effectively, conduct regular training, monitor progress and maintain accurate records throughout the grant’s lifespan. With over four decades of experience, Thompson Grants can assist your team by providing comprehensive and easily understandable compliance guidance. Learn how to manage your federal funding like a pro. Contact Thompson Grants today.

by Timika RileyJuly 12, 2023

What is 2cfr200? An Overview of Uniform Guidance | Thompson Grants

If you have any federal grant experience, you most likely have heard the term “Uniform Guidance. ” But even some experts need help properly understanding the requirements under the guidance. In December 2014, through the Code of Federal Regulations, the Office of Management and Budget (OMB) implemented “Uniform Administrative Requirements, Cost Principles, And Audit Requirements for Federal Awards “ (2 C.F.R. Part 200). It was created to streamline and simplify the existing federal grant management process and replace and consolidate eight previously separate sets of federal grant guidance into a comprehensive set of rules. This simplification aims to reduce the administrative burden for recipients and improve consistency and transparency in federal grantmaking. By including reforms such as new procurement standards and clarified cost allocation rules, the Uniform Guidance also promotes effective and efficient use of federal grant funds. Finally, the Uniform Guidance also benefits the public at large through efforts to reduce administrative costs and improve efficiency for the grantor and grantee, ultimately enhancing stewardship of taxpayer dollars. Federal agencies have implemented the Uniform Guidance within their regulations in other sections of Title 2. The Uniform Guidance was revised in August 2020, and OMB plans to make more revisions in 2023. stewardship of taxpayer dollars.

This blog will help you understand the importance of guidance, how to keep your organization compliant, and best practices for staying aware of the ever-changing grants landscape and the Uniform Guidance.

To whom does the Uniform Guidance Apply?

The Uniform Guidance applies to entities that receive and administer federal grant funding, including state and local governments, tribal nations, nonprofit organizations, and higher education institutions. Compliance with the guidance is required to receive and maintain federal grant funding. Grant professionals must understand the rules and requirements, including financial management, procurement, and reporting standards, to ensure continued receipt of federal funding, avoid penalties and legal actions, improve risk management, reduce errors, and enhance reputation and credibility.

Check out this free resource: 2 C.F.R. Frequently Asked Questions: Using OMB’s Vital Companion Resource

What does the Uniform Guidance cover?

The Uniform Guidance covers several areas related to federal grant management, including:

Financial management: The Uniform Guidance outlines rules for managing federal grant funds, including how to budget, account for, and report on grant funds.
Procurement: The Uniform Guidance establishes requirements for grant recipients purchasing goods and services with federal grant funds.
Administrative requirements: The Uniform Guidance outlines various administrative requirements, including documentation and recordkeeping standards.
Cost principles: The Uniform Guidance determines the reasonable and allowable costs when using federal grant funds.
Audit requirements: The Uniform Guidance outlines the requirements for ensuring compliance with federal grant regulations, including Single Audit requirements.

How can organizations comply with the Uniform Guidance?

Grants professionals can help their organizations stay compliant with the Uniform Guidance by implementing the following:

Familiarizing their staff with 2 C.F.R. Part 200 by conducting regular training sessions. This ensures your staff understands their roles and responsibilities under their guidance. This reduces the risk of non-compliance, errors, and any legal repercussions. Many grantmaking agencies and third-party organizations offer training sessions on Uniform Guidance.
OMB requires all nonfederal entities and organizations to have written policies. Your entity should implement internal policies and procedures to reflect the latest Uniform Guidance requirements and promote efficient grant management.
Maintaining detailed records can help grantee entities identify potential compliance issues and errors early, enabling them to proactively address them and reduce risks. A focused effort on maintaining records can also enhance communication and coordination between team members responsible for managing grant activities leading to improved collaboration, reduced documentation duplications, increased accountability, and greater efficiency.
Conduct regular internal audits to verify compliance with the Uniform Guidance. This can enable grantee organizations to take necessary corrective actions proactively, reducing the risk of financial mismanagement and non-compliance.
Work with grantmaking agencies, professional organizations, or third-party consultants when providing additional guidance and support on issues related to the Uniform Guidance. Third-party consultants can offer technical assistance, conduct training or assessments, or even provide a one-stop shop for all the organization’s compliance needs.

How to stay updated with the latest changes to the Uniform Guidance?

Staying current with the Uniform Guidance is imperative but a necessary investment for grant professionals. Grants professionals can stay informed of the ever-changing grant landscape by:

Attending webinars or conferences lets you hear from federal grant management experts and earn CPE and GPCI CEU credits as needed. Attend sessions that feature guest speakers or presentations on the Uniform Guidance.
Joining groups or networks for grant professionals, such as NGMA, can offer a space to share updates, learn from others and ask questions about the Uniform Guidance.
Participating in professional development workshops, technical assistance, and compliance training can provide a wealth of resources to inform you on the latest Uniform Guidance.

Unlock the secrets of indirect rate recovery with our on-demand webinar, ‘Indirect Rate Recovery Under the Uniform Guidance.’

In short, the Uniform Guidance is a comprehensive set of standardized guidelines that outlines fiscal management, procurement, and reporting standards. It applies to organizations that receive federal grant funding, and their adherence to these regulations determines their eligibility for additional funding in the future. Understanding and implementing these guidelines is crucial for successfully administering grants and minimizing the risk of penalties or lawsuits. At Thompson Grants, our experts deeply understand these regulations and their impact on federally funded organizations. Learn how we can help your organization maintain compliance with the Uniform Guidance.

Category: Uniform Guidance

Unlocking the Secrets of the Uniform Guidance: The Often-Overlooked Allowable Cost for Federal Grants Training

Preserving Trust and Accountability: The Importance of Grants Integrity for Every Grants Professional

Stay Ahead of the Curve: Top Strategies for Meeting Grant Requirements and Maintaining Compliance in 2023

What is 2cfr200? An Overview of Uniform Guidance | Thompson Grants

THOMPSON GRANTS

COMPLIANCE

TRAINING

RESOURCES

HELP

CONTACT