Title III Administrative and Financial Requirements Policy #8: MBA Grant Agreements and Amendments between MBA and AAAs
This content is part of a public comment period. For more information, refer to Minnesota Board on Aging – State Plan on Aging.
Authority Reference | 2 CFR 200 Subpart D 45 CFR 1321.65(b)(4) Minnesota Office of Grants Management Policies 08-04 & 08-12 |
Operating Category | Title III Administrative and Financial Requirements |
Policy
1. MBA enters into grant contract agreements with AAAs in order to fund the administration of Area Plans and other federal and state programs. Per Minnesota Statutes, section 16B.97, subdivision 1 (a), a grant contract agreement is “a written instrument or electronic document defining a legal relationship between a granting agency and a grantee when the principal purpose of the relationship is to transfer cash or something of value to the recipient to support a public purpose authorized by law”. This policy hereafter refers to grant contract agreements as “grant agreements”.
2. Grant agreements must be fully executed prior to when AAAs execute contracts or grant agreements with service providers and prior to when MBA may make an advance payment to an AAA.
3. Grant agreements must only fund activities that are approved as part of the Area Plan approval process, a subsequent review/approval process conducted by the MBA, or another federal or state program. The Area Plan is a central component of the grant agreement between the MBA and an AAA.
4. The grant agreement must conform to the following requirements:
A. Conform to Minnesota Statutes, section 16B.98, subdivision 5, “Creation and Validity of Grant Agreements,” including approval by the commissioner of the Department of Administration
B. Cite the MBA’s authority to enter into grant agreements and the Older Americans Act.
C. Specify the scope and timeline for the work, the AAA’s duties in carrying out the grant, and details about the disbursement of grant payments or payment for services provided according to contractual terms.
D. Contain standard contract language and assurances, including clauses regarding liability, data practices and intellectual property, contracting and bidding requirements that include use of targeted vendors, Worker’s Compensation, and provisions concerning federal funds as applicable.
E. Incorporate requirements such as work plan and budget into the grant agreement by reference and as an addendum so that both MBA and the AAA can easily locate and understand the information.
F. Include the name and phone number of the MBA’s and the AAA’s Authorized Representatives.
5. Changes to fully executed grant agreements must be made through amendments. An amendment is an addition, deletion, or change to a fully executed grant agreement.
A. When a modification to a grant agreement results in a change to the total obligation, compensation, expiration date, or duties associated with the agreement, those changes must be made through an amendment.
B. Grant agreements may be amended only when the purpose of the amendment is similar to the original purpose of the grant agreement.
C. Grant agreement attachments and exhibits may also be revised as part of a grant agreement amendment.
6. A grant agreement, plus any amendments to it, must not exceed five years.
7. Amendments to grant agreements between MBA and AAAs
A. Changes to funding amounts during an Area Plan year generally require an amendment to the grant agreement between MBA and each AAA with the exception noted below.
B. Annual changes to Area Plans that are processed as amendments must be presented at a public hearing for purposes of soliciting public comment. Mid-year changes to Area Plan budgets typically would not rise to the level of requiring a public hearing.
Procedures
1. AAAs must identify the service providers with which they intend to enter into grant agreements or contracts (to the extent this is known at the time of Area Plan submission), the services they will provide, and a budget including these services as part of the Area Plan development and submission process. The MBA will issue annual Area Plan instructions and provide additional detail in that guidance.
2. Following review and approval of the AAA’s Area Plan and negotiation of any final issues, the MBA and AAA will enter into a grant agreement between the MBA and the AAA. The approved Area Plan is a central component of the grant agreement between MBA and the AAA. The MBA will make every reasonable effort to have this agreement fully executed by December 15 of each year.
3. Grant agreements between MBA and AAAs typically begin on January 1 and expire on December 31 of each calendar year.
4. From time to time, grant agreements between MBA and AAAs may need to be amended for a variety of reasons, including adjustments to federal funding levels; AAA-initiated changes in how the AAA intends to spend their funding; or other circumstances.
5. If the MBA needs to initiate an amendment to grant agreements due to changes in federal funding levels or other circumstances, MBA staff will notify AAAs in writing to inform them about the pending change.
6. If an AAA needs to initiate any type of change to its grant agreement (including the Area Plan, which is incorporated by reference), the AAA must inform MBA of this pending action by sending a request through the Area Plan inbox. MBA staff will open Foundant so that AAAs may upload documents.
A. MBA will review the proposed budget change and determine next steps with respect to formalizing the proposed change through an amendment to the grant agreement.
B. AAAs must also inform the MBA if there are changes to personnel and upload position descriptions to Foundant.
7. MBA will make every reasonable effort to have amendments to grant agreements between MBA and AAAs executed within 30 calendar days of when the amendment is formally initiated by an AAA uploading its amendment documents to Foundant.
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