New Guidance: Use of Federal Funds for Conferences, Meetings, and Food

Transcription

1 New Guidance: Use of Federal Funds for Conferences, Meetings, and Food Office of Federal Programs Debbie B. Murphy, Bureau Manager Marcus E. Cheeks, Bureau Director

2 Agenda Why Now! Legal Structure Allowable Cost New Guidance Questions/Answers 2

3 Purpose Purpose Webinar is designed to share recently released guidance by the US Department of Education concerning appropriate usage of federal funds for conferences, meetings, and food 3

4 Legal Structure 4

5 Legal Structure of Federal Programs Statutes Program statutes (NCLB) ESEA Flexibility General Education Provisions Act (GEPA) Regulations Program regulations Education Department General Administrative Regulations (EDGAR) OMB Circulars Guidance 5

6 Legal Structure of Federal Programs (cont.) Statutes Regulations OMB Circulars Guidance 6

7 Allowable Cost 7

8 A Cost is Allowable if it Is the proposed cost allowable under the relevant program? Is the proposed cost consistent with program specific fiscal rules? Is the proposed cost consistent with federal cost principles? Is the proposed cost consistent with EDGAR? 8

9 A Cost is Allowable if it Is the proposed cost consistent with special conditions imposed on the grant? Is the proposed cost consistent with the underlying needs of the program? Data driven decision making Target funds to areas of weakness 9

10 A Cost is Allowable if it Is the proposed cost allowable under the relevant program? Is the proposed cost consistent with program specific fiscal rules? 10

11 New Guidance Key Points! 11

12 Impact of New guidance Past implications --- Q. May Part A funds be spent for food and refreshments provided during parent meetings or training? A. Reasonable expenditures for refreshments of food, particularly when such sessions extend through mealtime, are allowable. 12

13 New Guidance 1. When a grantee is hosting a meeting, may the grantee use Federal grant funds to pay for food, beverages, or snacks? Yes (with appropriate documentation) A very high burden of proof; Must show necessary to meet the goals and objectives of the Federal grant; Generally, the grantee should structure agenda with time for participants to purchase their own food, beverages, and snacks; Grantees may want to consider a location in which participants have easy access to food and beverages. 13

14 New Guidance 2. May Federal grant funds be used to pay for food and beverages during a reception or a networking session? No In virtually all cases, using grant funds to pay for food and beverages for receptions and networking sessions is not justified because participation in such activities is rarely necessary to achieve the purpose of the meeting or conference. 14

15 New Guidance 3. What if a hotel or other venue provides complimentary beverages (e.g., coffee, tea) and there is no charge to the grantee hosting the meeting? Yes (with appropriate documentation) Federal grant funds may only be used for expenses that are reasonable and necessary; In planning a conference or meeting and negotiating with vendors for meeting space and other relevant goods and services, grantees may only pay for allowable costs. 15

16 New Guidance 4. May indirect cost funds be used to pay for food and beverages? No The cost of food and beverages are treated as direct costs, rather than indirect costs. Reminder: Title I, Part A indirect cost is a portion of the 20% administration. (SBP 7802 Title I Administrative Limit 20%) Federal grant funds cannot be used to pay for food and beverages unless doing so is reasonable and necessary. 16

17 New Guidance 5. May Federal grant funds be used to pay for alcoholic beverages? No -Use of Federal grant funds to pay for the cost of alcoholic beverages is strictly prohibited. (OMB A- 87, Appendix B) 17

18 New Guidance 6. May a grantee use non-federal resources (e.g., State or local resources) to pay for food or beverages at a meeting or conference that is being held to meet the goals and objectives of its grant? Yes 18

19 New Guidance 6. May a grantee use non-federal resources? Grantees should follow their own policies and procedures and State and local law for using non-federal resources to pay for food; However, if non-federal funds are used to pay for food at a granteesponsored meeting or conference, the grantee should make clear through a written disclaimer or announcement that Federal grant funds were not used to pay for the cost of the food or beverages. Grantees should also be sure that any food and beverages provided with non-federal funds are appropriate and do not detract from the event s purpose. 19

20 New Guidance 7. May grantees provide meeting participants with the option of paying for food and beverages (e.g., could a grantee have boxed lunches provided at cost for participants)? Yes Grantees may offer meeting participants the option of paying for food (such as lunch, breakfast, or snacks) and beverages, and arrange for these items to be available at the meeting. 20

21 New Guidance 8. May Federal grant funds be used to pay for entertainment? No Federal grant funds may not be used to pay for entertainment, which includes costs for amusement, diversion, and social activities. 21

22 New Guidance 9. What are the consequences of using Federal grant funds on unallowable expenses? The Department may seek to recover any Federal grant funds identified, in an audit or through program monitoring, as having been used for unallowable costs, including unallowable conference expenses. 22

23 Location of FAQs To view the full Q&A on ED s website, go to: 23

24 Necessary & Reasonable Necessary and Reasonable Must be necessary for the performance or administration of the grant Must follow sound business practices: Arms length bargaining (hint: procurement processes) Follow federal, state and local laws Follow terms of the grant award Fair market prices Act with prudence under the circumstances No significant deviation from established prices This slide was added after presentation. 24

25 Necessary & Reasonable (cont.) Practical aspects of necessary Do I really need this? Is this the minimum amount I need to spend to meet my need? Practical aspects of reasonable Is the expense targeted to valid programmatic/administrative considerations? Do I have the capacity to use what I am purchasing? Did I pay a fair rate? Can I prove it? If I were asked to defend this purchase, would I be comfortable? This slide was added after presentation. 25

26 Recommended Actions! Review internal Procedures and Processes First, consider whether there are alternatives, such as webinars or video conferences, that would be equally or similarly effective and more efficient in terms of time and cost than a face-to-face meeting Share information with all stakeholders 26

27 Recommended Actions! Ensure all expenditures with federal funds are allowable costs Don t do anything with grant funds that you wouldn t want to see on the front page of your local paper Add disclaimer, such as a note in the conference program if funded with alternative sources 27

28 What do I do? Anytime federal money is used for a conference, meeting or food, LEAs should make sure the reasonableness of the cost and how the cost is necessary for the administration of the grant is clearly documented. Make sure all cost factors are taken into consideration when making your final decision. 28

29 References Program Rules: General Education Provisions Act (GEPA): de20/usc_sup_01_20_10_31.html Education Department General Administrative Regulations (EDGAR): ar.html 2 CFR Part 225 (OMB Circular A-87; State, Local, and Indian Tribal Governments), ( vol1/xml/cfr-2011-title2-vol1-part225.xml) 29

30 Questions/Contact Info Office of Federal Programs (601) Debbie B. Murphy Marcus E. Cheeks 30