Extramural Agreements Training

1. Extramural Agreements Training For ERS Authorized Departmental Officer’s Designated Representatives

2. Learning Objectives • To describe the key elements of the ERS administrative structure as it pertains to Extramural Agreements • To describe the types of applicable agreements • To explain the roles and responsibilities and the relationship between the Authorized Departmental Officer’s Designated Representative (ADODR), Budget Office, and Administrative and Financial Management (AFM), Financial Management and Agreements Division (FMAD) during the award process • To describe the extramural agreements process

3. Delegation of Authority Secretary of Agriculture Under Secretary for REE Administrator, ERS ADO ADODR

4. Order of PrecedenceRelevant Laws, Regulations, and Policies • Statutes • Program Regulations • Administrative Regulations • OMB Circulars and other Directives • Agency Policy • P&Ps • Bulletins • SOPs

5. Statutes Related to ERS • Federal Grants and Cooperative Agreements Act of 1977 (31 U.S.C. 6301-6303) • Food Security Act of 1985 (7 U.S.C. 3318(b) – 3319(a))

6. Policies

7. Mutual Resource Contribution • The Cooperator’s contribution must be maintained at 20 percent of the Federal funding level throughout the life of the cooperative agreement. • The Cooperator’s resource contributions must consist of a sufficient amount of itemized direct costs. • Examples: money, space, equipment, materials and supplies, personnel services.

8. Obligation and Expenditure of Funds • Funds may not be used for obligations or expenditures made prior to the start date of the agreement. • A formal written request must be submitted to ERS to authorize pre-award costs. • A copy of the pre-award cost letter and approval or disapproval must be included in the official file.

9. Indirect Cost Negotiation • If the Cooperator is not a State Cooperative Institution, FMAD must negotiate the indirect cost rate. • For non-profit organizations, the rate cannot exceed 10 percent. • The rate for profit organizations cannot exceed the audited rate of any federally recognized agency or what is approved by FMAD.

10. Indirect Costs and Tuition Remission

11. Types of Agreements

12. Important questions to ask when determining the correct type of agreement: • What is the principal purpose of the agreement? • What is the nature of ERS’ anticipated involvement? • What benefit will ERS derive from the agreement? • What is the anticipated relationship between ERS and the cooperator/recipient? • Will either party contribute funds, and if so, who will provide them?

13. Type of Agreement • Grant Agreement • Assistance-Type Cooperative Agreement (ATCA) • Cooperative Agreement

14. Type of Agreement • Grant • Assistance-Type Cooperative Agreement (ATCA) • Cooperative Agreement ERS uses a Grant to transfer something of value, usually money, to the recipient (usually a non-Federal entity) to stimulate or carry out a public purpose. No substantial involvement between ERS and the recipient during the performance of the project.

15. Type of Agreement • Grant • Assistance -Type Cooperative Agreement (ATCA) • Cooperative Agreement ERS uses an ATCA to transfer something of value, usually money, to the recipient to stimulate or carry out a public purpose. ERS is substantially involved with the recipient during the performance of the project.

16. Type of Agreement • Grant • Assistance-Type Cooperative Agreement (ATCA) • Cooperative Agreement An agreement between ERS and another party or parties that describes in detail a jointly planned and executed research program or project of mutual interest. Both parties contribute financial resources, participate in the cooperative work to be accomplished, and benefit from the outcome of the project. Subject to regulations codified at 7CFR 550.

17. Roles and Responsibilities

18. The Primary Players Financial Management & Agreements Division, ARS Authorized Departmental Officer Official delegated signature authority to commit authorized funding Develops policy and provides guidance to ERS as it pertains to extramural agreements Division Support Staff Authorized Departmental Officer’s Designated Representative Provides administrative assistance to the ADODR Budget Office Provides advice, guidance, and service on all financial matters The technical representative who oversees the specific work to be performed

19. Authorized Departmental Officer (ADO) • Reviews and approves or disapproves proposed agreements submitted by the ADODR. • Delegates authority to an ADODR and ensures the ADODR performs the duties within their delegation. • The Division Director serves as the ADO on all agreements under $100,000. • The Administrator, ERS, serves as the ADO on agreements $100,000 or more.

20. Authorized Departmental Officer (ADO) The ADO is the only person who can obligate funds or commit Agency resources, with regard to extramural agreements.

21. Financial Management & Agreements Division (FMAD) • Formulates, develops, and implements Agency policy. • Provides guidance to ERS as it relates to extramural agreements. • Reviews and approves ERS’ cooperative agreements prior to signature. • Enters the Invoice Document in FMMI. • Provides deobligation information to Budget for closeout of completed/expired agreements.

22. Financial Management & Agreements Division (FMAD) • Responsible for: • Award, Administration, and Closeout of the Agreement • Maintaining the “official” agreement file in the REE AIMS e-green module. FMAD will take all authorized actions necessary to protect and advance the interest of ERS, as it pertains to extramural agreements.

23. Financial Management & Agreements Division (FMAD) • Ensures that the ADODR performs the administrative duties within the scope of their delegation. • Ensures that ERS has the programmatic authority to enter into the agreement. • Determines the appropriate type of agreement with the assistance of the ADODR. • Assists the ADODR in developing the SOW and budget, as necessary.

24. Financial Management & Agreements Division (FMAD) • Ensures that the cooperator does not perform work prior to the agreement being fully executed, unless pre-award costs are authorized. • Negotiates all final terms and conditions. • Ensures that the agreement is in compliance with all applicable Federal laws and regulations.

25. Financial Management & Agreements Division (FMAD) • Ensures that the terms of the agreement are current, and that the agreement is revised, continued, suspended, or terminated as appropriate. • Initiates and completes agreement closeout. • Ensures that the ADODR has a proper delegation.

26. ADODR • The ADODR performs an integral role in the extramural agreements process and is responsible for working with the Cooperator to: • Direct and monitor technical performance • Provide oversight of the project • Ensure fiscal accountability of the project

27. ADODR • Discusses projects with the Division Director and Cooperator. • Obtains line management approval for the project prior to REE AIMS data entry. • Develops an accurate budget • Develops detailed statement of work (SOW), work plan, or proposal. • Submits draft SOW with budget form (REE-454 or REE-455) to their Division Support Staff. • Reviews, approves or disapproves, and forwards invoices (or Form SF-270) for payment to FMAD. • Monitors work progress, reviews and approves progress reports and financial status reports.

28. ADODR • Reviews performance reports to determine the level of program accomplishments and to resolve any discrepancies in program performance. • ADODRs document all accomplishments, discrepancies, and efforts made to reconcile differences. • These reports are the basis for approval or disapproval of payment requests. • Forwards pertinent information to FMAD for inclusion in the official file.

29. Budget Office • Provides advice, guidance, and service on all financial matters. • Obligates funds through the FMMI system and enters the appropriate data into REE AIMS system. • Codes Purchase Orders as “pay immediately”. • Assist FMAD with agreement closeout and account reconciliation

30. Exercises

31. The Extramural Agreements Process

32. Process Overview ADODR Statement Of Work (SOW) & Budget Division Support Staff Division Director Budget Office Cooperator Returns signed Agreement Package Division Director for Final Signature Cooperator for Signature FMAD

33. Discuss project and obtain line management approval. Develops: - Statement of Work (SOW) Consisting of: Objective, Approach, Statement of Mutual Interest, Cooperator Agrees to, ERS Agrees to, and Mutual Agreements. - Budget Form (REE-454 or REE-455) Submits all documents to the Division Support staff. ADODR

34. Division Support Staff • Enters SOW and Budget information into the REE AIMS System for the Division Director’s review and approval.

35. Division Director • Reviews SOW and Budget • Authorizes/approves the commitment of funds.

36. Budget Office • Enters the obligation into FMMI. • Enters FMMI information into the REE AIMS.

37. FMAD • Is the primary POC for all ERS agreement transactions. • Reviews the entire agreement for completeness. • Makes any necessary corrections. • Forwards the agreement to the Cooperator for signature.

38. Cooperator • Reviews and signs the agreement. • Completes pre-award negotiations in collaboration with the ADODR and FMAD as necessary. • Returns the signed agreement to FMAD.

39. FMAD • Reviews the signed agreement. • Forwards the agreement to the Division Support Staff for the Division Director’s signature.

40. Division Staff • Submits agreement to the Division Director for final signature.

41. Division Director/ERS Administrator • Signs the agreement. • The Division Director signs agreements under $100,000. • The Administrator, ERS, signs agreements $100,000 or more. • Returns the agreement to FMAD.

42. FMAD • Prepares agreement for distribution: • Cooperator - FMAD • ADODR - Official File - e-green • Budget

43. Amendment Process • Amendments go through the same review and approval process as a new agreement. • If there is no change in the money allocated to the award, the Budget Office is not involved in the process.

44. Regular Amendments(Requires both ERS’ and Cooperator’s signatures) • Decrease or increase funding or Change in Scope: What is needed: • Revised SOW/Proposal explaining the need for the change and the amount of both parties’ contributions. • Form REE-454/455 showing a revised budget. • FMMI Purchase Order Document to commit additional funds. • Form REE-451 with noted changes.

45. Regular Amendments (Requires both ERS’ and Cooperator’s signatures) • Change in Principal Investigator What is needed: Form REE-451 with noted changes.

46. Administrative Amendments(Requires ERS’ signature only) • Change in accounting code, address, bank information, ADODR, or an extension of time. • Extension of time: What is needed: • Form REE-451 with noted changes. A letter or an e-mail from the Cooperator should explain the need for the extension and should be attached to the REE-451 as backup.

47. The Payment Process • Submits invoices and financial reports to FMAD. • Submits progress/technical reports to ADODR. Cooperator

48. FMAD • Reviews the invoice for accuracy and reconciles any differences with the Cooperator prior to sending it to the ADODR. • Ensures all reporting requirements have been met by the Cooperator. • Financial Status Report • Performance Report • Requests performance reports when forwarding payment request to the ADODR. • Ensures accurate accounting information. • Forwards the invoice (via e-mail) to the ADODR for review and approval/disapproval.

49. ADODR • Reviews the invoice and the Performance Report for approval/disapproval. • If approved, the payment request is returned to FMAD for processing with performance report covering the period invoiced. • If disapproved, the payment request is returned to FMAD with explanation and for follow-up action. Performance Reports are required. No reports means no payment.

50. FMAD • Enters the invoice document into FMMI. • Sends an e-mail with a list of invoice document numbers to AFS for posting/approval.