Appendix I
Federal Programs
Excluded from the A-102 Common Rule
Note: §___ references
are to the "Uniform Administrative Requirements for Grants and Cooperative
Agreements to State and Local Governments" (A-102 Common Rule).
Background
Certain grant programs
(block grant programs enacted under the Omnibus Budget Reconciliation
Act of 1981, one special program, open-ended entitlement programs, and
other specified programs) are exempt from the provisions of the A-102
Common Rule. These programs are listed below. State administrative requirements
for financial management and control apply to the block grant programs
(including their subrecipients) and Federal agency regulations apply to
the programs which are not block grants.
Block grant programs
and the one special program are also exempt from the provisions of OMB
cost principles circulars. State cost principles requirements apply to
these programs (including their subrecipients). The open-ended entitlement
programs and other specified programs are subject to the provisions of
the OMB cost principles circulars.
The administrative
requirements for the open-ended entitlement programs contained in Federal
agency regulations may not be identical to those in the A-102 Common Rule.
Rather than identify for testing each instance where the requirements
differ, this Compliance Supplement only addresses differences that warrant
special attention. These differences are in the areas of real property
and equipment, procurement, and financial reporting. With respect to all
other administrative requirements, the auditor should be guided by the
provisions of the A-102 Common Rule (see Part 3) or Circular A-110 and
agency program requirements (see Part 4).
USDA's program rules
for the Food Stamp Program are in 7 CFR 271-285. HHS's program rules for
Medicaid, AFDC, Child Support Enforcement, and Foster Care and Adoption
Assistance programs are in 42 CFR 430-498, 45 CFR 201-257, 45 CFR 301-307,
and 45 CFR 1355-1357, respectively. 45 CFR 95, AGeneral Administration
- Grant Programs (Public Assistance and Medical Assistance), applies to
all of these HHS programs.
Differences pertaining
to real property and equipment
USDA's program rules
for real property and equipment (property) acquired under the Food Stamp
program are in 7 CFR 277.13, Property. These rules provide for reimbursing
the Federal Government for its share of the fair market value of property
with an original cost of $1000 or more when the property is no longer
needed.
Differences pertaining
to procurement
USDA=s program rules
for procurement associated with the Food Stamp program are in 7 CFR 277.14,
Procurement standards. These rules require pre-award review and approval
for all noncompetitive procurements over $10,000, all one bid only procurements
over $10,000, and all procurements over $10,000 which specify a brand
name. The rules also limit small purchase procedures to purchases under
$10,000.
Subpart F of 45 CFR
95, ADP equipment and services, applies to all of these programs. Subpart
F requires prior Federal written approval for the acquisition of ADP equipment
and services of $5 million or more when the Federal Government funds at
regular matching rates and prior written approval for all ADP acquisitions
when the Federal Government funds at enhanced matching rates. In addition,
the rules require prior Federal written approval for sole source contracts
between $1 million and $5 million when the Federal Government funds at
regular matching rates and for certain requests for proposals (RFPs),
contracts, and amendments.
Differences pertaining
to financial reporting
USDA=s financial
reporting requirements associated with the Food Stamp program are provided
in Part 4 of this Supplement.
HHS=s financial reporting
requirements associated with Medicaid, Child Support Enforcement, and
Foster Care are provided in Part 4 of this Supplement. HHS=s reporting
requirements for AFDC and Adoption Assistance have been approved under
the Paperwork Reduction Act of 1980, as amended. The auditor should consult
with the auditee to obtain the most current requirements. The reporting
requirements for Adoption Assistance will be included in Part 4, upon
completion of the agency program requirements.
Programs Excluded
from the Requirements of the A-102 Common Rule
Since many of the
programs excluded from the A-102 Common Rule were reauthorized or amended,
the following list provides the current CFDA number and name as listed
in the 1996 CFDA. A notation is included with the program name to indicate
when only part of the awards under a CFDA number are excluded from the
A-102 Common Rule or to provide other clarifications.
§___.4(a)(2) Block
grant programs authorized by:
The Omnibus Budget
Reconciliation Act of 1981 (§___.4(a)(2))
93.569 Community
Services Block Grant
93.991 Preventive
Health and Health Services Block Grant
93.958 and Block
Grants for Community Mental Health Services
93.959 Block
Grants for Prevention and Treatment of Substance Abuse (both of these
were formerly part of the ADAMHA block grant)
93.994 Maternal
and Child Health Services Block Grant to the States
93.667 Social
Services Block Grant
93.568 Low-Income
Home Energy Assistance
14.228 Community
Development Block Grants/State's Program (State-administered small
cities program)
84.298 Innovative
Education Program Strategies (Title VI) (formerly Chapter 2 of ECIA)
17.250 and Job
Training Partnership Act (Title I and II)
17.246 Employment
and Training Assistance--Dislocated Workers (Title III)
(For both of
these programs (17.250 and 17.246), Section 164(a)(3) of the Job Training
Reform Amendments of 1992, and the implementing regulations at 20
CFR section 627.420, prescribe minimum requirements for procurements
made with Job Training Partnership Act (JTPA) Titles I, II, and III
funds. These requirements largely parallel, and in some cases exceed,
the procurement provisions of the A-102 Common Rule. Also, 20 CFR
section 627.435(b) provides that the determination of whether a JTPA
Title I, II, or III cost is direct or indirect shall be made in accordance
with the OMB cost principles circulars identified in 29 CFR Part 97,
the Department of Labor's adoption of the A-102 Common Rule at 29
CFR section 97.22(b).)
Special program
84.010 Title
I Grants to Local Educational Agencies (formerly Chapter 1 of ECIA)
Open-ended entitlement
programs
§___.4(a)(3)
Entitlement grants to carry out the following programs of the Social Security
Act:
93.560 Family
Support Payments to States--Assistance Payments (AFDC Maintenance
Assistance)
93.563 Child
Support Enforcement (Title IV-D)
93.658 and Foster
Care--Title IV-E
93.659 Adoption
Assistance (Title IV-E)
93.778 Medical
Assistance Program (Medicaid; Title XIX) (not including the State
Medicaid Fraud Control program)
See Note 1 below
for applicable Federal agency regulations.
§___.4(a)(7)
A grant for an experimental, pilot, or demonstration project that is also
supported by a grant listed in paragraph (a)(3) of this section.
See Note 1 below
for applicable Federal agency regulations.
§___.4(a)(6)
Entitlement grants for State Administrative expenses under The Food Stamp
Act of 1977
10.561 State
Administrative Matching Grants for Food Stamp Program
See Note 2 below
for applicable Federal agency regulations.
§___.4(a)(4)
Entitlement grants under the following programs of The National School
Lunch Act:
10.555 (i)
National School Lunch Program (General Assistance)
10.550 (ii)
Food Distribution (Distributions for entitlement programs only, that
is the Commodities for Child Nutrition Programs)
10.555 (iii)
National School Lunch Program (Special Meal Assistance)
10.559 (iv)
Summer Food Service Program for Children
10.558 (v)
Child and Adult Care Food Program
See Note 2 below
for applicable Federal agency regulations.
§___.4(a)(5)
Entitlement grants under the following programs of The Child Nutrition
Act of 1966:
10.556 (i)
Special Milk Program for Children
10.553 (ii)
School Breakfast Program
See Note 2 below
for applicable Federal agency regulations.
Other specified programs
§___.4(a)(8)
Grant funds awarded under subsection 412(e) of the Immigration and Nationality
Act (8 U.S.C. 1522(e)) and subsection 501(a) of the Refugee Education
Assistance Act of 1980 (42 U.S.C. 1535) (Pub. L. 96-422, 94 Stat. 1809),
for cash assistance, medical assistance, and supplemental security income
benefits to refugees and entrants and the administrative costs of providing
the assistance and benefits.
93.566 Refugee
and Entrant Assistance--State Administered Programs
See Note 1 below
for applicable Federal agency regulations.
§___.4(a)(9)
Grants to local education agencies under 20 U.S.C. 236 through 241-1(a),
and 242 through 244 (portions of the Impact Aid program), except for 20
U.S.C. 238(d)(2)(c) and 240(f) (Entitlement Increase for Handicapped Children).
84.041 Impact
Aid (excluding payments for children with disabilities and payments
for construction)
'___.4(a)(10) Payments
under the Veterans Administration's State Home Per Diem Program.
64.014 Veterans
State Domiciliary Care
64.015 Veterans
State Nursing Home Care
64.016 Veterans
State Hospital Care
Note 1: Even
though the programs listed under paragraphs §___.4(a)(3), §___.4(a)(7),
and §___.4(a)(8) are exempt from the A-102 Common Rule, they are
currently covered by HHS's interim final implementation of OMB Circular
A-110 which HHS has titled as "Requirements for Awards and Subawards to
Institutions of Higher Education, Hospitals, Other Non-Profit Organizations,
and Commercial Organizations; and Certain Grants and Agreements with States,
Local Governments and Indian Tribal Governments" (45 CFR part 74) which
has requirements less restrictive (for institutions of higher education)
but similar to the A-102 Common Rule and "General Administration-Grant
Programs (Public Assistance and Medical Assistance)" (45 CFR part 95).
Note 2: Even
though the entitlement programs listed under paragraphs §___.4(a)(4),
§___.4(a)(5), §___.4(a)(6) above are exempt from the A-102 Common
Rule, they are covered by USDA's 7 CFR part 3015 which has requirements
more restrictive but similar to the A-102 Common Rule.