- Pub Code: WG303-11WEB
- Originally held on Feb. 14, 2013
How to Assure Cost Reasonableness — The Key to Good Federal Grants Management
February 14, 2013 Webinar - Listen On-Demand or Get a CD!
There are few topics affecting federal grants that involve more judgment than cost reasonableness. This session explores the concept of “cost reasonableness” as a key to good federal grants management.
The On-Demand recording will be available immediately upon purchase* as a link within a PDF file of the accompanying written materials. CDs and printed materials are shipped via USPS.
Learn about the concept of “cost reasonableness” as a key to good federal grants management
“A cost is reasonable if, in its nature or amount, it does not exceed that which would be incurred by a prudent person under the circumstances prevailing at the time the decision was made to incur the cost.” That’s what the federal cost principles that apply to your grant or subgrant say on the matter of cost reasonableness. Well, if we can just find that “prudent person,” we’ll be just fine. Right?
There are few topics affecting federal grants that involve more judgment than cost reasonableness. And there are a lot of people who might be in a position to make a judgment. Start with the staff of the federal awarding agency or their inspector general’s office. Add the governing body of your organization, its employees, its clients, the media, and the general public, and it’s no surprise that disagreements about cost reasonableness crop up all the time. And when they crop up in connection with an audit, those disagreements can become downright contentious and expensive.
This webinar will explore the following:
- The concept of cost reasonableness — we’ll delve deeply into the factors that the federal cost principles say should be relied upon in making “prudent judgments."
- How “reasonableness” is applied at each stage in the life of the grant or subgrant — from pre-award budgeting, to post-award expenditure and reporting, and ending up with the audit process.
- How judgments have been made in actual cases based on factors like sound business practices, arms-length bargaining, federal and state laws and regulations, and practices that the federal government itself employs.
- Ways to help you steer clear of marginal and problematic decision making.
ENHANCED CONTENT — You’ll also hear how OMB’s new federal grant reform proposal, released on February 1, 2013, is likely to impact allowability of your grant costs going forward. OMB’s plan to consolidate and harmonize the various sets of federal cost principles is back on track and you’ve got another opportunity to comment on what is likely to be the biggest change in grants management policy in a generation.
This session should be an eye-opener whether you’ve worked with the cost principles for years or you’re new to the grants field.
Prerequisites: Some knowledge of federal grants management is helpful but not necessary
Advanced preparation: None
Attendees will receive presentation slides as well as access to background documents.
BOB LLOYD is a respected authority on policies and practices affecting the award, administration and oversight of federal grants, contracts and subawards. Mr. Lloyd has more than 40 years of experience in federal award implementation. Prior to starting his management consulting practice in Washington, D.C., in 1982, he served as the executive director of the Grants Management Advisory Service and held staff positions in two large federally funded organizations. Since then, he has been a consultant, trainer or advisor to award and audit units in 16 federal award-making departments and agencies, and to recipient and subrecipient organizations and their professional advisors located in all 50 states, the District of Columbia, several U.S. territories and 18 foreign countries. He is the principal author of several reference works on federal grants management and audits, and currently serves as contributing editor to Federal Grants News and Federal Auditing News, published jointly by Atlantic Information Services and NACUBO. He also is a Charter Life Member of the National Grants Management Association and served on its Board of Directors for five years.
Who Should Attend?
- Sponsored Program Administrators
- Grant and Contract Administrators
- Federal Program Managers
- Principal Investigators
- Internal Auditors
- External Auditors
- Finance Directors
The costs of webinars sponsored by Federal Fund Management Advisor are allowable charges to your federal grants and subgrants. Each of the sets of federal cost principles issued by OMB for federal awards administered by state, local, and tribal governments, colleges and universities, and nonprofit organizations explicitly states that the costs of training for employee development and vocational effectiveness are allowable. For your records, the specific citations are:
- OMB Circular A-21 (2 CFR 220), Appendix A, Paragraph J.51—Colleges and Universities
- OMB Circular A-87 (2 CFR 225), Appendix B, Paragraph 42—State, Local and Tribal Governments
- OMB Circular A-122 (2 CFR 230), Appendix C, Paragraph 49(a)—Nonprofit Organizations
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