2 CFR 200 Sub-recipients & the Internal Control Questionnaire

Transcription

1 2 CFR 200 Sub-recipients & the Internal Control Questionnaire

2 2 Code of Federal Regulations (CFR) CFR 200 Implemented December 26, 2014 Streamlined guidance for Federal awards Administrative Requirements Cost Principles Audit Requirements 2

3 2 CFR 200 Audit Requirements Audit requirements are contained in Sections through Audit Requirements Single or program-specific audit required if received $750,000+ in federal awards during its FY Financial Statements Auditees still required to prepare a Schedule of Expenditures of Federal Awards (SEFA) 3

4 2 CFR 200 Administrative Requirements Conflict of Interest - Disclose in writing any conflict of interest Mandatory Disclosures - Disclose in writing all violations of federal criminal law involving fraud, bribery or gratuity violations potentially affecting the federal award Period of Performance - Limits the period for which allowable costs may be charged (Begin and End dates) 4

5 2 CFR 200 Changes Established state requirements for subrecipients Ensure sub-recipients comply with all Federal laws Monitor performance scheduled for achievement Ensure the establishment and maintenance of effective internal controls for compliance 5

6 Sub-recipient Definition A sub-recipient is a non-federal governmental or non-profit entity administering (holding) a contract with Federal funds that pass through DOTD 6

7 Sub-recipient Actions that result Receives Federal funds passed through DOTD to carry out a Federal program or project Is monitored by DOTD for applicable Federal program compliance requirements Uses Federal funds to carry out a program or project of the organization versus providing goods or services 7

8 What is a Subrecipient? Questions to determine if a sub-recipient is used Does DOTD have an executed agreement or contract with a subrecipient type entity? (Yes) Is the executed agreement or contract at least partially Federally funded? (Yes) Does DOTD perform the work? (No) Is the work performed benefitting the entity? (Yes) 8

9 Difference of Sub-recipient from a Vendor Vendor actions/requirements Provides goods or services within normal business operations Provides similar goods or services to many different purchasers Operates in a competitive environment 9

10 Types of Subrecipients Indian Tribes Colleges/Universities School Boards Cities, towns, municipalities, etc. Other LA State agencies Regional Planning Commissions Parish Governments Parish Police Jury Council on Aging 10

11 Example 1 LPA holds contract on their route Federal funds are used on contract LPA provides matching funds Entity-State Agreement is used Contractor performs work benefitting LPA Federal funds flow through DOTD to LPA LPA is considered a sub-recipient 11

12 Example 2 MPO Unified Planning Work Program defines tasks for MPO MPO can either perform work in-house or out-source to a consultant (not performed by DOTD) Federal funds are used Entity-State Agreement is used Federal funds flow through DOTD to MPO MPO is considered a sub-recipient 12

13 Example 3 LPA holds contract on their route LPA provides funds NO Federal funds are used on contract (state funds) Entity-State Agreement is used Contractor performs work benefitting LPA NO Federal funds flow through DOTD to LPA LPA is NOT considered a sub-recipient 13

14 Example 4 DOTD holds the contract LPA provides matching funds Federal funds are used on contract Entity-State Agreement is used Contractor performs work benefitting LPA NO Federal funds flow through DOTD to LPA LPA is NOT considered a sub-recipient 14

15 Examples of Subrecipient Activity Recreational Trails Program Recreational trails and trail-related facilities for nonmotorized and motorized recreational trail uses Safe Routes to School (SRTS) Program Sidewalks, bike paths or other facilities near a school Transportation Alternatives Program Ped./bike facilities, scenic turnouts, overlooks and viewing areas, etc. Urban Systems Program Road construction, overlays, signals, ped. facilities 15

16 Internal Control Questionnaire (ICQ) for LPAs and Not-For Profit Organizations 16

17 Internal Control Questionnaire (ICQ) ICQ Purpose - To collect information about an entity in compliance with 2 CFR 200 to evaluate risks Requirements Will be required for all entities that receive Federal Funds Each question must have an answer Each question has Yes, No, N/A 17

18 Evaluation of the Risk of Non-compliance of Entity Administered Risks Descriptions Instances of Fraud, Waste or Abuse Fiscal Year Funding Prior Audit and/or Findings Internal Control Prior Oversight of the Entity Contract Oversight by Other Entity Experience Level of Staff Level of Technology Complexity of Project Management/Technical Assistance on the Project 18

19 Risk Assessment If project is selected, Program Manager sends project acceptance letter to entity that may include Risk assessment Any individual high risk factors identified Recommendations to mitigate high risk factor 19

20 20