[Adopted 6-27-2017 (P17-02)]
A.
Purpose. Kent County Levy Court, Kent County, Delaware (the "County") receives awards of federal funds, either directly or as a subrecipient, from various sources. The Federal Office of Management and Budget provides uniform guidance which governs the policies and procedures to be followed by nonfederal entities in the management of federal awards. This uniform guidance is codified under Title 2, Subtitle A, Chapter 2, Part 200 of the Code of Federal Regulations (2 CFR 200) — Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. This Policy summarizes the County's responsibility for management of awarded funds.
B.
Authority and responsibility. Kent County Levy Court is responsible
for compliance with federal statutes, regulations, and the terms and
conditions of federal awards applicable to its federal programs. To
assist in the proper administration of federal funds and implementation
of this Policy, the Finance Director may approve additional procedures
as administrative regulations.
C.
Compliance violations. Employees and contractors involved in federally
funded programs and subrecipients shall be made aware that failure
to comply with federal law, regulations or terms and conditions of
a federal award may result in the federal awarding agency or pass-through
entity imposing additional conditions or terminating the award in
whole or in part. (2 CFR 200.338 and 2 CFR 200.339)
D.
County policies and procedures. The County maintains documented policies
and procedures which reflect State and local laws and regulations.
Those practices may be followed for Federal Awards wherever they are
not in conflict with the Federal Award's guidance and applicable Federal
law.
E.
General policy. County financial management systems, including records
documenting compliance with Federal statutes, regulations, and the
terms and conditions of the Federal award, must be sufficient to permit
the preparation of reports required by general and program-specific
terms and conditions; and the tracing of funds to a level of expenditures
adequate to establish that such funds have been used according to
the Federal statutes, regulations, and the terms and conditions of
the Federal award. County financial management systems must provide
for the following:
(1)
Identification, in its accounts, of all Federal awards received and
expended and the Federal programs under which they were received.
Federal program and Federal award identification must include, as
applicable, the CFDA title and number, Federal award identification
number and year, name of the Federal agency, and name of the pass-through
entity, if any. (2 CFR 200.302)
(2)
Accurate, current, and complete disclosure of the financial results
of each Federal award or program in accordance with the reporting
requirements set forth in § 200.327, Financial reporting,
and § 200.328, Monitoring and reporting program performance.
If a Federal awarding agency requires reporting on an accrual basis
from a recipient that maintains its records on other than an accrual
basis, the recipient must not be required to establish an accrual
accounting system. This recipient may develop accrual data for its
reports on the basis of an analysis of the documentation on hand.
Similarly, a pass-through entity must not require a subrecipient to
establish an accrual accounting system and must allow the subrecipient
to develop accrual data for its reports on the basis of an analysis
of the documentation on hand. (2 CFR 200.302)
(3)
Records that identify adequately the source and application of funds
for federally funded activities. These records must contain information
pertaining to Federal awards, authorizations, obligations, unobligated
balances, assets, expenditures, income and interest and be supported
by source documentation. (2 CFR 200.302)
(4)
Effective control over, and accountability for, all funds, property,
and other assets. The County must adequately safeguard all assets
and assure that they are used solely for authorized purposes. See
§ 200.303, Internal controls. (2 CFR 200.302)
(5)
Comparison of expenditures with budget amounts for each Federal award.
(2 CFR 200.302)
[Adopted 6-27-2017 (P17-02)]
A.
The County will establish and maintain effective internal control
over its Federal awards that provides reasonable assurance that the
County is managing Federal awards in compliance with Federal statutes,
regulations, and the terms and conditions of the Federal award.
B.
The County will comply with Federal statutes, regulations, and the
terms and conditions of the Federal awards.
C.
The County will evaluate and monitor its compliance with statutes,
regulations and the terms and conditions of Federal awards.
D.
The County will take prompt action when instances of noncompliance
are identified, including noncompliance identified in audit findings.
E.
The County will take reasonable measures to safeguard protected personally
identifiable information and other information the Federal awarding
agency or the County designates as sensitive or the County considers
sensitive consistent with applicable Federal, state, local, and tribal
laws regarding privacy and obligations of confidentiality.
[Adopted 6-27-2017 (P17-02)]
Generally, the County receives payments of federal award funds
on a reimbursement basis. In some cases, the County may receive an
advance of federal grant funds.
A.
Reimbursements.
(1)
The County will request reimbursement for actual expenditures incurred
under federal grants at least quarterly, or more often as deemed appropriate.
(2)
Reimbursement requests will be submitted with appropriate documentation
and signed by the County's designated representative. All reimbursements
are based on actual disbursements, not on obligations.
(3)
The County will maintain supporting documentation of federal expenditures
(invoices, payroll records, etc.) and will make such documentation
available to awarding agencies upon request.
B.
Advances.
(1)
When the County receives advance payments of federal grant funds,
it must minimize the time elapsing between the transfer of funds from
the United States Treasury or the pass-through entity and the disbursement
of those funds on allowable costs of the applicable federal program.
(2 CFR 200.305)
(2)
To the extent available, the County will disburse funds available
from program income (including repayments to a revolving fund), rebates,
refunds, contract settlements, audit recoveries, and interest earned
on such funds before requesting additional cash payments. (2 CFR 200.305)
(3)
The County will maintain advance payments of federal awards in insured,
interest-bearing accounts whenever not precluded by the Federal award
grant guidance or whenever the exceptions per 2 CFR 200.305(8) do
not apply. Interest amounts up to $500 per year may be retained by
the County for administrative expense. Any additional interest earned
on Federal advance payments deposited in interest-bearing accounts
must be remitted annually to the Department of Health and Human Services
Payment Management System (PMS) through an electronic medium using
either Automated Clearing House (ACH) network or a Fedwire Funds Service
payment. [2 CFR 200.305(9)]
[Adopted 6-27-2017 (P17-02)]
The County has established conflict of interest provisions under
Code §§ 41-6, 30-14 and 143-24. In addition, federal
awarding agencies establish conflict of interest policies for Federal
awards. In reference to the County's federal awards, the following
also apply:
A.
No County employee, officer, or agent may participate in the selection,
award, or administration of a contract supported by a Federal award
if he or she has a real or apparent conflict of interest. Such a conflict
of interest would arise when the employee, officer, or agent, any
member of his or her immediate family, his or her partner, or an organization
which employs or is about to employ any of the parties indicated herein,
has a financial or other interest in or a tangible personal benefit
from a firm considered for a contract. The officers, employees, and
agents of the County may neither solicit nor accept gratuities, favors,
or anything of monetary value from contractors or parties to subcontracts.
However, the County may set standards for situations in which the
financial interest is not substantial or the gift is an unsolicited
item of nominal value. Disciplinary actions may be applied for violations
of such standards by officers, employees, or agents of the County.
(2 CFR 200.318)
B.
Whenever the County has an affiliate or subsidiary organization that
is not a state, local government, or Indian tribe, the County must
also maintain written standards of conduct covering organizational
conflicts of interest. Organizational conflicts of interest means
that because of relationships with an affiliate, or subsidiary organization,
the County is unable or appears to be unable to be impartial in conducting
a procurement action involving a related organization. (2 CFR 200.318)
C.
All employees and officials involved with federal awards shall be
informed of applicable standards of conduct covering conflicts of
interest.
D.
The County will disclose in writing any potential conflict of interest
to the Federal awarding agency or pass-through entity in accordance
with applicable Federal awarding agency policy. (2 CFR 200.112)
[Adopted 6-27-2017 (P17-02)]
The County will use its own documented procurement procedures
which reflect applicable State and local laws and regulations, provided
that the procurements conform to applicable Federal law and the standards
identified in this part. (2 CFR 200.318)
A.
The County will maintain oversight to ensure that contractors perform
in accordance with the terms, conditions, and specifications of their
contracts or purchase orders.
B.
The County will avoid acquisition of unnecessary or duplicative items.
Where applicable, consideration will be given to consolidating or
breaking out procurements to obtain a more economical purchase. Where
appropriate, an analysis will be made of lease versus purchase alternatives,
and any other appropriate analysis to determine the most economical
approach.
C.
To foster greater economy and efficiency, and in accordance with
efforts to promote cost-effective use of shared services across the
Federal Government, the County may enter into state and local intergovernmental
agreements or interentity agreements where appropriate for procurement
or use of common or shared goods and services.
D.
The County may use Federal excess and surplus property in lieu of
purchasing new equipment and property whenever such use is feasible
and reduces project costs.
E.
The County may use value engineering clauses in contracts for construction
projects of sufficient size to offer reasonable opportunities for
cost reductions. Value engineering is a systematic and creative analysis
of each contract item or task to ensure that its essential function
is provided at the overall lower cost.
F.
The County shall award contracts only to responsible contractors
possessing the ability to perform successfully under the terms and
conditions of a proposed procurement. Consideration will be given
to such matters as contractor integrity, compliance with public policy,
record of past performance, and financial and technical resources.
Vendors providing goods or services under federal award shall
not have been suspended or debarred by the Federal Government. For
covered transactions, the County shall check the Excluded Parties
List System at www.sam.gov prior to contracting with a vendor for
procurement. See also § 200.212, Suspension and debarment.
G.
The County will maintain records sufficient to detail the history
of procurement. These records will include, but are not necessarily
limited to, the following: rationale for the method of procurement,
selection of contract type, contractor selection or rejection, and
the basis for the contract price.
H.
The County may use a time and materials type contract only after
a determination that no other contract is suitable and if the contract
includes a ceiling price that the contractor exceeds at its own risk.
Time and materials type contract means a contract whose cost to a
County is the sum of:
(1)
The actual cost of materials; and
(2)
Direct labor hours charged at fixed hourly rates that reflect wages,
general and administrative expenses, and profit.
Since this formula generates an open-ended contract price, a
time-and-materials contract provides no positive profit incentive
to the contractor for cost control or labor efficiency. Therefore,
each contract must set a ceiling price that the contractor exceeds
at its own risk. Further, if the County awards such a contract, the
County shall assert a high degree of oversight in order to obtain
reasonable assurance that the contractor is using efficient methods
and effective cost controls.
I.
The County alone shall be responsible, in accordance with good administrative
practice and sound business judgment, for the settlement of all contractual
and administrative issues arising out of procurements. These issues
include, but are not limited to, source evaluation, protests, disputes,
and claims.
[Adopted 6-27-2017 (P17-02)]
Expenditures must be aligned with approved budgeted items. Any
deviation from the approved award budget will require prior approval
from the awarding agency. Allowability of costs will be determined
prior to obligating and spending federal funds on a proposed good
or service. State and County rules or policy must also be considered.
Whichever allowability requirements are stricter will govern whether
a cost is allowable.
A.
Except where otherwise authorized by statute, costs must meet the
following general criteria in order to be allowable under Federal
awards per 2 CFR 200.403:
(1)
Be necessary and reasonable for the performance of the Federal award
and be allocable thereto under these principles.
(2)
Conform to any limitations or exclusions set forth in these principles
or in the Federal award as to types or amount of cost items.
(3)
Be consistent with policies and procedures that apply uniformly to
both federally financed and other activities of the County.
(4)
Be accorded consistent treatment. A cost may not be assigned to a
Federal award as a direct cost if any other cost incurred for the
same purpose in like circumstances has been allocated to the Federal
award as an indirect cost.
(5)
Be determined in accordance with generally accepted accounting principles
(GAAP), except, for state and local governments and Indian tribes
only, as otherwise provided for in this part.
(6)
Not be included as a cost or used to meet cost sharing or matching
requirements of any other federally financed program in either the
current or a prior period. See also § 200.306, Cost sharing
or matching, paragraph (b).
(7)
Be adequately documented. See also §§ 200.300, Statutory
and national policy requirements, through 200.309, Period of performance,
of 200 CFR Part 200.
[Adopted 6-27-2017 (P17-02)]
The County has established policies governing travel procedures under Policy § 6-1, Travel and meal reimbursement and Policy § 4-4, Use of vehicles for County business. In addition, federal awarding agencies may establish travel policies for Federal awards. In reference to the County's federal awards, the following also apply:
A.
General. Travel costs are the expenses for transportation, lodging,
subsistence, and related items incurred by employees who are in travel
status on official business of the County. Such costs may be charged
on an actual cost basis, on a per diem or mileage basis in lieu of
actual costs incurred, or on a combination of the two, provided the
method used is applied to an entire trip and not to selected days
of the trip, and results in charges consistent with those normally
allowed in like circumstances in the County's nonfederally funded
activities and in accordance with the County's written travel reimbursement
policies. Notwithstanding the provisions of § 200.444, General
costs of government, travel costs of officials covered by that section
are allowable with the prior written approval of the Federal awarding
agency or pass-through entity when they are specifically related to
the Federal award. (2 CFR 200.474)
B.
Lodging and subsistence. Costs incurred by employees and officers
for travel, including costs of lodging, other subsistence, and incidental
expenses, shall be considered reasonable and otherwise allowable only
to the extent such costs do not exceed charges normally allowed by
the County in its regular operations as the result of the County's
written travel policy. In addition, if these costs are charged directly
to the Federal award documentation must justify that:
C.
Commercial air travel. Airfare costs in excess of the basic least
expensive unrestricted accommodations class offered by commercial
airlines are unallowable except when such accommodations would:
(1)
Require circuitous routing;
(2)
Require travel during unreasonable hours;
(3)
Excessively prolong travel;
(4)
Result in additional costs that would offset the transportation savings;
or
(5)
Offer accommodations not reasonably adequate for the traveler's medical
needs. The non-Federal entity must justify and document these conditions
on a case-by-case basis in order for the use of first-class or business-class
airfare to be allowable in such cases. (2 CFR 200.474)
