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Nevada AEFLA Directors A Discussion of Federal Issues November 28, 2012 Hyatt Place Las Vegas, NV

Nevada AEFLA Directors A Discussion of Federal Issues November 28, 2012 Hyatt Place Las Vegas, NV. Presented by Michael Brustein, Esq. www.bruman.com mbrustein@bruman.com. Agenda. Funding Sequestration Ryan Budget Cash Management Issues OMB Super Circular Time and Effort

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Nevada AEFLA Directors A Discussion of Federal Issues November 28, 2012 Hyatt Place Las Vegas, NV

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  1. Nevada AEFLA DirectorsA Discussion of Federal IssuesNovember 28, 2012Hyatt PlaceLas Vegas, NV Presented by Michael Brustein, Esq. www.bruman.com mbrustein@bruman.com

  2. Agenda • Funding • Sequestration • Ryan Budget • Cash Management Issues • OMB Super Circular • Time and Effort • Reauthorization • Questions

  3. Funding - AEFLA

  4. EL Civics

  5. FY 13 – 7/1/13 6/30/14 • Continuing Resolution (CR) but only through March 2013 increase of .612 of 1%

  6. Sequestration • Budget Control Act, August 2011

  7. Sequestration • Supercommittee tasked with cutting $1.5 trillion in spending over next decade by Thanksgiving 2011 • Total failure to come to an agreement means automatic cuts triggered • Only intended as a threat – never meant to happen • Cuts take effect January 2, 2013 • Automatic, across-the-board cuts • Little discretion for appropriators, agencies • Apply to FY 2013 federal spending numbers • Could exacerbate effect of any cuts made in FY 2013

  8. When Will Sequestration Happen? • President Obama must issue a sequestration order no later than January 2, 2012 • Funds received by States July 2012 and earlier are NOT subject to sequestration • Advance funding received in October of 2012 will not be subject to sequestration when allocated • BUT cuts will be calculated and applied to July 2013 funds • Funding received in July of 2013 will be subject to cuts • After July 2013, cuts will be incorporated into annual appropriations

  9. Ryan BuDget • Passed House • 5% cut on 7/1/13 • 15% cut on 7/1/14

  10. Cash Management Issues • Minimize time elapsing between transfer from ED to SEA, and from SEA to AEFLA provider for actual expenditure – 72 hours – 34 CFR 80.20(b)(7)

  11. Interest accrued over $100 must be remitted 34 CFR 80.21(i)

  12. Period of Availability • AEFLA requires multiyear funding • Each AEFLA $ subject to • 27 month availability • 90 day liquidation • 34 CFR 80.23

  13. AEFLA Providers Cannot Obligate Funds until Local Plan Approved 34 CFR 76.708(c)

  14. Obligations in carryover period subject to current statute and applications 34 CFR 76.710

  15. Administrative Costs = Indirect Costs

  16. OMB Super CircularAdvance NoticeNPRMFinal Rule

  17. Expect Revisions to: • Cost Principles • A-21 • A-87 • A-122 • Administrative Principles • A-110 • A-102 • Federal Agency Audit Resolution • A-50 • Single Audit • A-133

  18. Super Circular • Increase consistency • Decrease complexity But allows for disparate treatment depending on type of entity

  19. Will the shifting of Audit Thresholds reduce burden on SEAs?

  20. Single Audit Threshold • Under $1 million in total federal expenditures: • No single audit • Augmented pass-through role • Between $1 million and $3 million • More “focused” single audit • Over $3 million • Full single audit

  21. “Focused Single Audit” ($1 to $3 Million) • Single auditors to review • 2 Compliance Requirements • Allowable/Unallowable • Federal agency determines – but priority on risk of improper payments, or fraud, waste, abuse (look to Compliance Supplement)

  22. Can SEA impose additional compliance requirements??

  23. “Full Single Audit” Over $3 Million“Universal Compliance Requirements” • Allowable Costs • Eligibility • Reporting • Subrecipient Monitoring • Period of Availability of Federal Funds • Procurement Practices Comply with Suspension/Debarment

  24. Time and Effort • A-87 Requirements • New Flexibility on Cost Objectives

  25. Reauthorization • Current law authorized through 2003 • Congress may consider WIA Reauthorization next year • AEFLA is relatively non controversial • EL Civics likely to be folded into Basic Grant • DOL Administration?

  26. Questions

  27. This presentation is intended solely to provide general information and does not constitute legal advice or a legal service.  This presentation does not create a client-lawyer relationship with Brustein & Manasevit, PLLC and, therefore, carries none of the protections under the D.C. Rules of Professional Conduct.  Attendance at this presentation, a later review of any printed or electronic materials, or any follow-up questions or communications arising out of this presentation with any attorney at Brustein & Manasevit, PLLC does not create an attorney-client relationship with Brustein & Manasevit, PLLC.  You should not take any action based upon any information in this presentation without first consulting legal counsel familiar with your particular circumstances.

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