Leslie J. Wright

1. SPR Subpart B Research Program:Program ReviewConducted By: FHWA National Review TeamDate: Monday, July 27Time: 1:15 – 2:30 pmRAC 2015 Meeting Portland, OR Leslie J. Wright Office of Research, Development, and Technology (RD&T)Turner-Fairbank Highway Research Center (TFHRC)McLean, VA

2. Presentation Highlights • SP&R Sub-part B Review • Review Objectives • Review Team Key Observations • Review Team Recommendations • TFHRC Actions • Supercircular Highlights

3. Program Review Basics? • Why: Determine how we can better assist Divisions in providing program management and oversight • Six States selected for site visits • Target Audience: Corporate R&T, FHWA Division RC and State DOT research staff • Conducted July/August 2014

4. Program Review Objectives • To determine • How Divisions conduct their periodic reviews • What is necessary for successful stewardship and oversight • What are the gaps • Best practices and lessons learned • To determine • How research program integration (e.g. EDC and SHRP2) occurs • How to harmonize the FHWA R&T Agenda and the State DOT's research program.

5. Key Observations • No Division or State had complete awareness of what constituted full compliance with the regulations • Variety of reasons for this lack of awareness • years of experience • competing collateral duties • lack of definitive guidance • viewing Research as a low-threat risk based on dollar value alone

6. Key Observations continued… • Two State DOTs were able to describe successes in terms of implementation and quantifiable benefits of research conducted • They placed strong emphasis on implementation throughout the research cycle • from problem identification through incorporation of results into State DOT plans, specifications, and processes. • Four State DOTs still have difficulty in linking completion of research projects and market readiness

7. Key Observations continued… • 1 State DOT fully implemented a STIC • Integrated its research program, SHRP2 and EDC into one single program. • 1 State DOT is in the early stages of integration.

8. Key Observations continued… • FHWA R&T Agenda Marketing efforts not yet succeeded. Need a better • Understanding of linkage between Agenda and their State’s transportation research needs. • Understanding of how they can contribute to strengthening this linkage.

9. Review Team Recommendations/TFHRC Actions • (1) Develop tools to assist Division RC with stewardship and oversight • Actions: • Research 101 Course • Regulatory Checklist • FHWA Research Coordinators SharePoint Site • Comprehensive FHWA Research Coordinators Contacts List • Knowledge sharing webinars for FHWA Division RCs • Guidance: Use of FHWA State Planning and Research Funds for Reimbursement of Education and Tuition Expenses

10. Review Team Recommendations/TFHRC Actions • (2) Recommendation: Provide guidance to encourage the use of a STIC and to assist States with program integration • Actions: • Conduct a webinar that highlights states with a fully implemented STIC and integrated research program, SHRP2, and EDC • Develop Introduction to SPR Research Coordinator’s Package for new SPR Research Coordinators • Research 101 a requirement for all Division R&T Coordinators

11. Review Team Recommendations/TFHRC Actions • (3) Increase transparency of FHWA’s national research efforts (R&T Agenda) • Actions: • FHWA R&T Agenda workgroup to improve documentation of research projects • R&T Leadership Team to review FHWA office R&T agenda objectives and update as needed • Conduct analysis of division “top 3 Challenges” and report to R&T leadership • Continuous enhancement of the Agenda website • one-FHWA R&T program theme

12. Thank You! Leslie Wright International/Domestic Partnerships Program Manager leslie.wright@dot.gov 202-493-3460

13. 2 CFR 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Supercircular Highlights

14. 2 CFR Part 200 “Supercircular” Particulars Streamlines the language from eight OMB circulars to one consolidated set of guidance. The following have been combined in this document: • A-21Cost Principles for Educational Institutions • A-87Cost Principles for State, Local and Indian Tribal Governments • A-89Federal Domestic Assistance Program Information • A-102Awards and Cooperative Agreements with State and Local Governments • A-110Uniform Administrative Requirements for Awards and Other Agreements with Institutions of Higher Education, Hospitals and other Non-Profit Organizations • A-122Cost Principles for Non-Profit Organizations • A-133Audits of States, Local Governments and Non-Profit Organizations • A-50Audit Follow-Up, (as related to Single Audits)

15. 2 CFR Part 200 “Supercircular” Particulars continued… • Focuses Federal Resources on Improving Performance and Outcomes • Ensures Integrity of Federal Funds with Stakeholders • Effective December 26, 2014 • Cancels 49 CFR Parts 18 and 19 • Application and Policy Implementation 2 CFR 200- Introduction

16. Applicability of the “Supercircular” • New Awards authorized on or after Dec 26, 2014 • Project Modifications made on or after Dec 26, 2014 • Example 1: Project ABC1234 is a new project submitted by the State for authorization on Dec 26, 2014 and approved by the FHWA on Dec 27 – Supercircular Applies • Example 2: Project DEF5678 is an existing project authorized on Jul 11, 2012 and the project is not closed – Supercircular Doesn’t Apply • Example 3: On Dec 26, 2014 or later a modification to project DEF5678 is submitted for authorization to make a significant change to the scope of the project – Modify terms, Supercircular Applies

17. Applicability of the “Supercircular” • Audit Requirements – apply to audits of non-Federal entity fiscal years beginning on or after Dec 26, 2014 • Example 1: State or Sub-recipient fiscal year beginning Jul 1, 2014 and ending Jun 30, 2015 – Supercircular audit requirements do not apply • Example 2: State or Sub-recipient fiscal year beginning Jan 1, 2015 and ending Dec 30, 2015 – Supercircular audit requirements apply • Example 3: State or Sub-recipient fiscal year beginning Jul 1, 2015 and ending Jun 30, 2016 - Supercircular audit requirements apply

18. 2 CFR 200 Subparts and Appendices • Acronyms and Definitions • General Provisions • Pre-Award Requirements and Contents of Federal Awards • Post-Award Requirements • Cost Principles • Audit Requirements • Appendix VII – States and Local Government and Indian Tribe Indirect Cost Proposals 2 CFR 200- Subparts A-F, VII

19. Highlights • Subpart A – Acronyms and Definitions §200.0-.99 • Period of Performance • Project Start and End Date • mandates a project agreement start and end date • FMIS • FMIS 4 does not have an end date data field but FMIS 5 will include this data field. • FMIS 4: end date included in State Remarks field Subpart A §200.0-200.99

20. Highlights • Subpart B- General Provisions §200.100-.113 • Purpose and Application of the Uniform Guidance • Implementation and Effective Date - 12/26/2014 • Accountability Through New Requirements • Conflict of Interest (23 CFR 1.33) • Mandatory Disclosures of Fraud, Bribery, or Gratuity Violations Subpart B §200.100-200.113

21. Highlights • Subpart C- Pre-Award Requirements §200.200-.211 • This section seeks to increase competition for Federal funds, • Improve transparency • Make more information available to interested parties. Subpart C §200.200-200.211

22. Highlights • Subpart D- Post Award Requirements §200.300-.345 • Administrative Requirements: Once federal award has been made to non-Federal entity • Performance Measurement §200.301 • Greater Focus on Internal Controls §200.303 • Payments §200.305 • Cost Sharing or Matching §200.306 • Period of Performance §200.309 • Greater Responsibilities for Sub-recipient Monitoring §200.331 • Project Closeout §200.343 thru §200.345 Subpart D §200.300-200.345

23. Highlights • Subpart E- Cost Principles §200.400-.475 • Generally Consistent with OMB A-87 or 2 CFR 225 • Indirect Costs related changes • Negotiated Rates: one-time extension of up to 4 years • Use ICAP – If the state or local government receives more than $35 million in Federal funds • Use de minimus rate of 10% - If a non-Federal entity receives $35 million or less in total Federal awards (could be applied to sub-recipients such as LPAs) • Narrative Cost Allocation Methods - Use of Appendix VII • FHWA testing financial management improvement initiatives Subpart E §200.400-200.475

24. Highlights • Subpart F-Audit Requirements §200.500-.521 • Generally Consistent with OMB A-133 • Applicable to audits of non-Federal entity fiscal years beginning on or after Dec 26, 2014 • Increased Threshold for Single Audits • Increased from $500,000 to $750,000 • Updated Single Audit Compliance Supplement Subpart F §200.500-200.521

25. Implementation • Division and Program Offices having conversations with State DOT counterparts regarding • Coordination • Communication (Internal and External) • Training Development and Updates • Regulations, Policy, and Guidance Updates 2 CFR 200- Implementation

26. Resources • 2CFR200 URL • http://www.ecfr.gov/cgi-bin/text-idx?tpl=/ecfrbrowse/Title02/2cfr200_main_02.tpl • Council on Financial Assistance Reform (COFAR) • https://cfo.gov/cofar/ • Crosswalks to/from previous guidance and the new Supercircular • Q&A document • FHWA Policy and Guidance Center • http://www.fhwa.dot.gov/pgc/ • 2 CFR 200 Implementation Guidance 2 CFR 200- Resources

27. Follow-up Questions or Assistance:2 CFR 200 • First Stop: • FHWA Division Office 2 CFR 200- Contacts

28. Thank You! Leslie Wright International/Domestic Partnerships Program Manager leslie.wright@dot.gov 202-493-3460