Whitepaper: The Audit World's Biggest Myths
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Enabling government contractor and nonprofit organizations with unrivaled service to overcome difficult, highly regulated federal grant compliance challenges.
Capital Edge offers essential, yet unique grant consulting services, that are holistically designed by a team of public accounting, industry and government experts. Our services are unique in that they provide the critical compliance advisory component, and couple it with solution-focused practices that enable the successful implementation of a federal grant.
Our organization offers a wide variety of services dedicated to overcoming challenges, but also provides the critical advisory support needed on the journey to implementation. The crucial commitment needed for companies in assisting in pre-award or the beginning of the grant cycle, award or the negotiation period, and the post award phase or delivery, is undeniable for an organization’s success and growth, and Capital Edge will tirelessly partner with every step of the way.
Our advisory phases include:
Pre-Award: beginning of the grant lifecycle, pricing considerations, organizational capability for award compliance requirements.
Award: negotiations and settling of terms and conditions.
Post Award: critical phase with crucial emphasis on compliance with federal statutes, regulations, specific terms and conditions, and where yearly audits for compliance with Uniform Guidance (2 CFR 200) and awarding agency supplements are expected.
Grant compliance is the process of ensuring that all federal grants are properly reported to the government. There are different standards for each type of program, but most programs will have some sort of set of rules and requirements, documentation, progress, impact, and reporting of data.
Uniform Guidance introduced sweeping changes to administrative requirements, cost principles, and audit requirements for Federal awards to non-Federal entities. These changes brought new responsibilities and opportunities to non-Federal entities. Unfortunately, most publicly available guidance focuses primarily on helping non-Federal entities cope with the added responsibilities, leaving little consideration to the new opportunities that are now available. The most overlooked of these opportunities is the ability, but more importantly the right, to Indirect Cost Recovery.
If your organization has never had a Federally negotiated indirect cost rate or if you have elected to use the “de minimis” rate, please provide us the opportunity to show you how much money you could be recovering for your organization. Capital Edge Consulting is actively offering federal grant compliance and working with Federal grantees all over the country to develop and negotiate Federal indirect cost rate agreements. Our industry experts will guide you through the calculation, proposal, and negotiation of indirect cost rates.
To the right-hand side, you will find some upcoming training courses and thought leadership. If you’d like to learn more about our approach, experiences, and solutions, we hope to see you at one of the following training sessions or contact us directly.
Prior to Uniform Guidance, the ability to apply for and be awarded a negotiated indirect cost rate agreement (NICRA) was heavily dependent on the Federal awarding agency. Since December of 2014, non-Federal entities have to option to submit an indirect cost rate proposal and negotiate a rate based on the prior years cost information. Organizations owe it to their mission and to their stakeholders to take full advantage of and recover every dollar of funding that is available. As budgets become tighter and meetings become more difficult due to reductions in funding, organizations may find relief by recovering more indirect costs on their Federal grants.
Here are the latest questions being asked about Federal Grant Compliance
On August 13, 2020, OMB published Final Guidance to revise Uniform Guidance for the first time since its initial release date in 2014. These revisions to the guidance are effective November 12, 2020, except for the amendments to §§200.216 (Prohibition on certain telecommunication and video surveillance services or equipment) and 200.340 (Termination), which are effective on August 13, 2020.
The following two provisions are most impactful to recipients:
1. §200.322 Domestic preferences for procurements. This new requirement emphasizes that an organization to the greatest extent practicable under a Federal award, provide a preference for the purchase, acquisition, or use of goods, products, or materials produced in the United States (including but not limited to iron, aluminum, steel, cement, and other manufactured products).
2. §200.320 Methods of procurement to be followed. Organizations may be eligible for a Micro-Purchase Threshold up to $50,000 if they meet the criteria set forth in this revised section.
On June 18th, 2020 OMB Issued Memorandum M-20-26 which rescinded M-20-17 and provided an extension for two of the flexibilities through September 30, 2020. When addressing the allowability of salaries and other project activities the memorandum said the following regarding the PPP loan and other CARES Act funding:
“Under this flexibility, payroll costs paid with the Paycheck Protection Program (PPP) loans or any other Federal CARES Act programs must not be also charged to current Federal awards as it would result in the Federal government paying for the same expenditures twice.”
Yes, Fund payments are considered to be federal financial assistance subject to the Single Audit Act (31 U.S.C. §§ 7501-7507) and the related provisions of the Uniform Guidance, 2 C.F.R. § 200.303 regarding internal controls, §§ 200.330 through 200.332 regarding subrecipient monitoring and management, and subpart F regarding audit requirements. The CFDA number assigned to the Fund is 21.019.
Capital Edge government contract consultants support Government Contractors and Federal Grant Recipients. Our consultants specialize in the regulatory compliance matters you need.
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McLean, VA 22102
