UNIFORM GRANT MANAGEMENT STANDARDS

1 1 UNIFORM GRANT MANAGEMENT STANDARDS TEXAS COMPTROLLER OF PUBLIC ACCOUNTS As Adopted June 2004 with Revised Single Audit Threshold to $750,000 as of 3/7/2016 (for fiscal years beginning on or after December 26,2014) per UNIFORM GRANT Guidance 2 CFR 200 Glenn Hegar Comptroller 2 The Texas Comptroller of Public Accounts was assigned responsibility for GRANT MANAGEMENT as of Sept. 1, 2011, by the 82nd Legislature, First Called Special Session. This responsibility was moved from the Office of the Governor to the Comptroller s Office under the Texas Procurement and Support Services (TPASS) Division. The Comptroller s Office will serve as the contact for GRANT MANAGEMENT related issues and be responsible for maintenance of the UNIFORM GRANT MANAGEMENT STANDARDS (UGMS).

2 In 2007, TexasOnline, now , the official website of the State of Texas, developed the eGrants Web site for agencies to post GRANT applications and announcements. Using the eGrants Web site, the general public can search for and view the details of competitive funding announcements available through dozens of Texas state agencies. The Comptroller s Office encourages and promotes the use of the eGrants Web site by state agencies and local governments. The eGrants Web site can be a one stop solution for any organization or individual seeking information related to grants offered by state agencies and local governments. The Electronic State Business Daily (ESBD) should be used for posting solicitations for non- GRANT related goods and services.

3 Posting the agency GRANT to the ESBD does not allow the user to easily identify grants and results in an unnecessary search of procurement solicitations. The use of the eGrants Web site will be more efficient and effective for customers seeking GRANT information. Individuals posting grants shall have the authority to do so for their agency and hold a Certified Texas Procurement Manager (CTPM) certification. If an individual does not hold a CTPM, they will be required to provide the Comptroller s Office a signed statement from their Director or the Director s designated staff member authorizing the individual access to eGrants. If a state agency has questions related to GRANT MANAGEMENT , please contact the Texas Comptroller of Public Accounts (CPA) Statewide Procurement Division (SPD), 1711 San Jacinto Blvd.

4 , Austin, Texas 78701, by email at 3 MASTER TABLE OF CONTENTS I. INTRODUCTION 5 II. COST PRINCIPLES FOR STATE AND LOCAL GOVERNMENTS AND OTHER AFFECTED ENTITIES 7 Table of Contents 7 ATTACHMENT A -- General Principles for Determining Allowable Costs 9 ATTACHMENT B -- Selected Items of Cost 17 ATTACHMENT C -- State/Local-Wide Center Service Cost Allocation Plan 36 ATTACHMENT D--Public Assistance Cost Allocation Plans 43 ATTACHMENT E -- State and Local Indirect Cost Rate Proposals 46 III. STATE UNIFORM ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND COOPERATIVE AGREEMENTS 54 Table of Contents 54 Subpart A General 56 Subpart B Pre-Award Requirements 62 Subpart C Post-Award Requirements 68 Financial Administration 67 Changes, Property, and Subawards 75 Reports, Records, Retention, and Enforcement 91 Subpart D After-The- GRANT Requirements 97 Subpart E---Entitlements (Reserved)

5 98 IV. STATE OF TEXAS SINGLE AUDIT CIRCULAR 101 Table of Content s 99 A--General 105 B--Audits 106 C-- Auditees 114 D--State

6 Agencies and Pass-Through Entities 115 4 E Auditors 118 V. APPENDIX A: 1 TAC 132 VI. APPENDIX B: UNIFORM GRANT AND CONTRACT MANAGEMENT ACT 137 VII. INDEX 140 REVISIONS ADOPTED IN JUNE 2004 HAVE BEEN HIGHLIGHTED. 5 I. Introduction The following UNIFORM GRANT MANAGEMENT STANDARDS (UGMS) for state agencies were developed under the authority of Chapter 783 of the Texas Government Code, which codifies the UNIFORM GRANT and Contract MANAGEMENT STANDARDS Act of 1981. That Act directs the Comptroller s office to establish UNIFORM GRANT and contract administration procedures to promote the efficient use of public funds in local government and in programs requiring cooperation among local, state and federal agencies.

7 The Act requires the Comptroller s office to compile and distribute a set of STANDARDS from OMB Circular A-102 and from other applicable statutes and regulations. The STANDARDS were first published in June 1982, incorporating A-102, Grants and Cooperative Agreements With State and Local Governments ; A-87, Cost Principles for State, Local and Indian Tribal Governments ; and A-128, Audits of State and Local Governments. They were revised in February 1990 to incorporate changes to OMB Circular A-102. Major revisions began in January 1996 and were completed in December 1997, with clarifications to the cost principles and revisions to the audit provisions made in December 1998 in response to specific questions regarding the STANDARDS as published in January 1998.

8 Amendments were adopted November 2000. The revisions incorporated into this issuance of the STANDARDS were developed to conform UGMS changes in OMB Circular A-87, to revise and clarify the A-102 annotations as necessary and to make the STANDARDS consistent with federal law by substituting OMB Circular A-133 for A-128, which was rescinded when A-133 was issued in June 1997. While both A-87 and A-102 were significantly modified to reflect state law, policies and procedures, A-133 was transformed into a new state single audit circular. The last amendments were adopted in June 2004. The revisions correct typographical errors, clarify certain provisions in the cost principles and make substantive changes to selected provisions of the state single audit circular adopted by reference from OMB Circular A-87, the GRANT administration requirements adopted by reference from the Common Rule of OMB Circular A-102 and single audit requirements adopted by reference from OMB Circular A-133.

9 6 Purpose, Applicability and Scope Purpose: The UNIFORM GRANT MANAGEMENT STANDARDS were established to promote the efficient use of public funds by providing awarding agencies and grantees a standardized set of financial MANAGEMENT procedures and definitions, by requiring consistency among grantor agencies in their dealings with grantees, and by ensuring accountability for the expenditure of public funds. State agencies are required to adhere to these STANDARDS when administering grants and other financial assistance agreements with cities, counties and other political subdivisions of the state. Applicability: Chapter 783 of the Government Code specifically applies the STANDARDS promulgated by the Comptroller s office only to state and local governments, and excludes school districts, colleges and universities and special districts.

10 However, to further consistency and accountability, some state agencies have applied these STANDARDS by rule or contract to all their subrecipients. In addition, Chapter 2105, Texas Government Code, subjects all subrecipients of federal block grants to the UNIFORM GRANT and Contract MANAGEMENT STANDARDS . In summary, recipients and subrecipients, other than state and local governments, of federal pass-through and other funds from state agencies should check with the awarding agency to ascertain whether or to what extent they are subject to these STANDARDS . In the event of a conflict between UGMS and applicable federal law, the provisions of federal law apply.