AGREEMENT FUNDED UNDER THE CLEARWATER COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM (2)
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AGREEMENT FUNDED UNDER
THE CLEARWATER COMMONITY DEVELOPMENT
BLOCK GRANT PROGRAM
THIS AGREEMENT is entered into as of the 1st day of October, 19~ by the
CITY OF CLEARWATER, Florida, a political subdivision of the State of Florida,
hereinafter referred to as the "CITY", and COMMUNITY PRIDE CHILD CARE CENTER OF
CLEARWATER, INC., as further identified in Appendix A, hereinafter referred to
as the "PSA" , and included the Appendices attached hereto.
WHEREAS, the City has agreed with the United States Department of Housing
and Urban Development to conduct a Community Development Program, hereinafter
referred to as the "Program". with federal financial assistance under Title I
of the Housing and Community Development Act of 1974. as amended, hereinafter
called the "Act", and
WHEREAS. the City of Clearwater Planning & Development Department,
hereinafter called the "Department". will act in behalf of the City in conducting
the Program. and
WHEREAS. the PSA provides a program as identified in Appendix A of benefit
to low and moderate income residents within the City of Clearwater and proposes
to perform the work and carry out the specific services as identified in Appendix
A hereinafter referred to as the "Project", and desires federal financial
assistance through the City to effect this proposal, and
WHEREAS, the City finds the project to be meritorious and in fulfillment
of the purposes of the Act;
THEREFORE, the parties agree as follows:
1. The PSA shall. in a satisfactory and proper manner as determined by
the Department, conduct the Project outlined in Appendix A.
2. The term of this agreement shall commence on October 1. 1989, and
terminate on September 30. 1990. unless earlier cancelled as provided herein.
The agreement may be extended for up to one additional year upon the request of
the PSA and the written authorization of the City Community Development Manager.
The need and merit shall be at the determination of the Manager. The Department
may issue written or oral instructions to clarify any other details or provisions
of this Agreement. Such instruction must be within the intent of the project
and not be of such nature to affect cost or period of performance.
3. The City representative with the PSA as regards conduct of services
under this contract shall be the Community Development Manager and the PSA's
services shall be carried out under the supervision of the Agent as identified
in Appendix A.
4. The PSA shall not exceed its budgeted amount and shall use the funds
in accordance with the award to be paid with Community Development Funds included
in Appendix B. Funds shall not be obligated when payment has been suspended or
terminated pursuant to paragraph 19 hereof. Any funds which the Department
determines were not properly expended shall be refunded to the City.
5. The PSA shall comply with the provisions of OMB Circular A-lID,
provided in Appendix G, and with the provisions of OMB Circular 122. provided
in Appendix H. or the appropriate successor documents of these documents. The
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PSA shall permit the City to audit the PSA's financial operation including but
not limited to compliance with applicable provisions of Federal law and
regulations. All PSA financial records relating to the Project are subject to
review by the City.
6. All subcontractors under this agreement shall be approved by the City.
7. All purchases of consumable, capital equipment and services shall be
in conformity with the Procurement Standards set forth in OMB Circular A-IIO,
Attachment O. Accountability for project property and equipment shall be in
accordance with the requirements therein set forth.
8. The City agrees to make payment of budgeted costs on a reimbursement
basis. Requests for payment shall be as specified in Attachment B. No advance
payments shall be made to the PSA. All costs and invoices for request for
payment shall be supported by properly executed payrolls, time records, invoices,
contracts, or vouchers, or other official documentation evidencing in proper
detail the nature and propriety of the charges. All checks payrolls, invoices,
contracts, vouchers, orders or other accounting documents pertaining in whole
or in part to the agreement shall by clearly identified and readily accessible.
Final request for reimbursement hereunder shall be submitted within 30 days after
completion of all services to be perfonned by the PSA and the City shall not be
responsible for payment of any charges, claims or demands hereunder not received
within said thirty day period.
9. The PSA shall upon the expiration of this agreement transfer to the
city any CDBG funds on hand and any accounts receivable attributable to the use
of CDBG funds. Program income funds are excluded from this provision or and are
provided below.
Program income funds shall be retained by the PSA so long as the activities
that will be undertaken with the program income are the specific activities that
meet the provisions of this agreement. These funds shall be adjusted by the City
according to the principles described in paragraphs (b)(2)(i) and (ii) of Section
570.504 which states that:
(1) Program income in the form of repayments to, or interest earned on
a revolving fund as defined in Section 570. 500(b) shall be substantially
disbursed from the fund before additional cash withdrawals are made from the
U.S. Treasury for the same activity.
(2) Substantially all other program income shall be disbursed for eligible
activities before additional cash withdrawals are made from the U.S. Treasury.
10. The City shall retain custody upon termination this agreement of any
and all property purchased with Community Development Funds. "Property" as used
in this Paragraph shall mean nonexpendable tangible property valued at $200 or
more with a remaining life expectancy of one year or more. The PSA shall retain
custody of property acquired with federal funds so long as the property is used
for the purposes described in Appendix A. When no longer used for such purpose,
the City shall assume custody of the property upon written notice to the PSA.
Upon purchase and receipt of property, the PSA shall submit to the Department
a Property Receiving Report. Stolen, lost or returned property shall be reported
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>( "'t,.")
or immediately upon termination of this agreement, the PSA shall submit in a
Property Report a physical inventory of all property purchased with Community
Development Funds. The report shall also contain a verification of the existence
and current used and location of the property, and, if applicable, the continued
need for the property. No real or personal property or custody thereof purchased
with such funds shall be disposed of, transferred, assigned, or loaned by the
PSA without prior written consent of the City.
11. For any real property under the PSA's control that was acquired or
improved in whole or in part with CDBG funds in excess of $25,000 must;
(1) Be used to meet one of the national objectives in Section 570.901
until five years after expiration of the agreement, or for such longer period
of time as determined to be appropriate by the City; or
(2) Disposed of in a manner that results in the recipient's being
reimbursed in the amount of the current fair market value of the property less
any portion of the valued attributable to expenditures of non-CDBG funds for
acquisition of, or improvement to, the property. (Reimbursement is not required
after the period of time specified in paragraph (b)(8)(i) of Section 570.503..Q
12. Nothing in this agreement shall be construed to permit invasion of
the privacy of individuals who are served by the project, nor shall this
agreement be construed to require the PSA to publish or release information to
third parties which would invade the privacy of such individuals. Information
obtained by the Department as required by this agreement shall not be used or
disclosed in such a way as to invade individual privacy and client relationships,
unless Florida law pertaining to public records requires disclosure of said
information.
13. The PSA shall obtain prior written approval by addendum to this
agreement for any of the following changes:
a. Substantial changes in the project work plan.
b. Changes in any budget line item.
14. The PSA agrees to fully participate in the implementation and
maintenance of an evaluation system to continually monitor the project. This
shall include, but not be limited to, quarterly (or more frequent) reports on
progress toward the goals listed in Appendix A, periodic submission of data
reports which will be used by the Department for inclusion in the Annual Grantee
Performance Report, periodic monitoring visits by the Department for conformance
with this agreement, and continuing assessments of performance hereunder. PSA
agrees to comply with evaluation and information requirements of the Department.
A final report shall be submitted by the PSA within 30 days after the end of the
contract term. This final report shall consolidate reporting of all project
participants.
15. PSA shall establish and maintain on an accrual basis an accounting
system in accordance with the Standards of Grantee Financial Management System
as set forth in OMB Circular A-110 or the appropriate successor document and in
accordance with generally accepted accounting principals and standards where
these principals and standards are not in conflict with A-110 or its successor.
PSA agrees to modify or correct said systems in accordance with he City's
requirements.
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16. PSA shall maintain such records and accounts as are deemed necessary by
the city to assure a proper accounting for all project funds. All such records shall
be available for audit, inspection or copying purposes at any time during normal
business hours and as often as the City, HUD, and/or representatives of the
Comptroller General of the United States, or other federal agency, may deem
reasonably necessary. Such records shall be retained for such period as required
by applicable laws and regulations and may thereafter be destroyed only with the
prior written approval of the City. Such records shall include financial records,
audits, supporting documents, statistical reports and client files. PSAwi11 comply
with such additional requirements as to maintenance of records as the City may
request in writing. In the event the PSA cannot continue to be responsible for
maintenance of the records, then the City shall be so notified in order to take
custody of the records. The city may, at any time, on written notice to the PSA take
custody of any and all records established under this Agreement.
17. The PSA shall hold and save the City, its officers, agents, and employees
harmless from liability of any nature or kind, including costs and expenses, for or
on account of any suits or damages of any character whatsoever resulting from
injuries or damages sustained by any persons or property resulting in whole or in
part from the negligent performance or omission of any employee, agent or
representative of the PSA.
18. The PSA shall not assign any interest in this Agreement without the prior
written consent of the City.
The City may suspend, withhold, or terminate payment of the project, in
in part, for cause or convenience. Cause shall included the following:
Use of funds that does not follow project guidelines.
Failure to comply with any term or condition hereunder.
Refusal to accept conditions imposed by HOD.
Refusal to accept conditions imposed by the City.
Submittal of reports which are incorrect or incomplete in any material
respect.
If carrying out this Agreement is rendered impossible or
infeasible for any reason including changes in law or the
unavailability of HUD funds necessary for continuation.
g. Convenience shall be according to the regulations in 24 CFR 85.43 and
85.44.
19.
whole or
a.
b.
c.
d.
e.
f.
If the City suspends payment, it shall advise the PSA and specify in writing the
actions that must be taken as a condition precedent to the resumption of payment and
specify a reasonable date for compliance.
20. Both parties will use their best efforts to ensure that services under
this Agreement are provided so as to best meet the needs of residents with priority
to those residents who reside in the Community Development target areas. The PSA
shall make every effort to assure that a minimum of two-thirds of those persons
receiving services hereunder are low and moderate income.
21. No person with responsibilities in the operation of the project will
discriminate with respect to any project participant because of race, color,
national origin, or sex. Nor shall any participant be excluded from participation
in, be denied of, or be subjected to discrimination under any program of activity
funded in whole or in part with Community Development Funds because of race, color,
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hational origin. or sex. Nor shall any participant be excluded from
participation in. be denied of. or be subjected to discrimination under any
program of activity funded in whole or in part with Community Development Funds
because of race. color. national origin or sex. as set forth in Other Program
Requirements in Appendix D, (CFR 570.601).
22. No resources provided through this Agreement shall be used to have
the primary effect of advancing religion. nor shall any goods or services
provided through this Agreement be provided in a pervasively sectarian manner.
as required by the First Amendment of the Constitution of the United States.
All activity under this Agreement shall be consistent with specific conditions
for religious organizations as established by the United States Department of
Housing and Urban Development.
23. The PSA will establish safeguards to prohibit employees from using
their positions for a purpose that is or gives the appearance of being motivated
by a desire for private gain for themselves or others, particularly those with
whom they have family. business or other identifiable ties. Prior to requesting
any continued project funding beyond the term covered by this Agreement or for
a new public services not covered by this Agreement. the PSA shall attempt to
secure other local. state or federal funding and/or private funding for such
project. The PSA will not as a result of receiving funding for the Project
reduce its support for other similar services already being provided by the PSA
in the area of its operation, and will, in fact, affirmatively seek additional
assistance and support from other sources for increasing services where needs
demand such increase. The PSA will not use these funds for publicity or
propaganda purposes designed to support or defeat legislation pending before
federal, state or local governments.
24. The PSA shall comply with the requirements of Section 3 of the
Housing and Urban Development Act of 1968. as amended, and the HUD regulations
issued pursuant thereto, attached hereto as Appendix E.
25. The PSA will comply with Equal Employment Opportunities Executive
Order 11246, as amended, attached hereto as Appendix F.
26. The PSA will comply with applicable federal law and regulations,
including but not limited to:
National Environmental Policy Act of 1969;
Flood Disaster Protection Act of 1973;
HUD Implementation of the Lead-Based Paint Poisoning Prevention Act;
Clean Air Act;
Historic Preservation Requirements of P.L. 89-656
Archeological and Historic Preservation Act of 1974;
Executive Order 11593;
Architectural Barriers Act of 1968;
Hatch Act;
Federal Water Pollution Control Act;
Federal Labor Standards provisions and the Davis-Bacon Act;
The Civil Rights Act of 1964;
National Flood Insurance Program;
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'all as amended from time to time and in effect during the term this Agreement.
IN WITNESS WHEREOF, the parties hereto have caused this agreement to be
executed as of the day and year first above written.
COMMUNITY PRIDE CHILD CARE CENTER OF
CLEARWATER, INC.
ATTEST:
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Secretary
By
O:;!lA; FL:&
Ron H. Rabun
City Manager
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ATTEST:
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Agency: Community Pride
Year: 1989 - 1990
APPENDIX A
Identification of ~encv and Svecific Services to be Provided
AGENCY
Name:
Community Pride Child Care Center of Clearwater, Inc.
Legal classification:
A non-profit corporation organized and existing under
the laws of the State of Florida.
Principal Office:
1235 Holt Avenue in the City of Clearwater, Florida
34615
Mailing Address:
1235 Holt Avenue, Clearwater, FL 34615
Agent:
Martha Skelton, Executive Director
813-443-0958
PROGRAM OF AGENCY
Provides a child care program for pre-school children in the North and South
Greenwood areas. Provides day care for children of working parents who are
charged on a sliding scale based on income and family size. Most of the children
come from single parent, minority families with low incomes and many are "Title
XX" families.
SPECIFIC SERVICES TO BE PROVIDED UNDER THIS AGREEMENT
I. Title XX Match and Operating Expenses
Child care will be provided to children of families rece~v~ng support under
Title XX of the Social Security Act and funds under this Agreement will be
used to provide 8% local match. This match will be provided for
approximately 24 children for approximately 260 days, up to the maximum
funds as identified in Appendix B. Funds are also to be used for operating
expenses such as additional classroom equipment.
II. South Facility Relocation and Expansion
The South Center currently located at 1436 S. Madison Avenue will be
relocated and expanded at another location, such as the Clearwater YWCA
Thrift Shop building at 211 S. Missouri Avenue. The new facility will
provide services for 50 or more children in pre-school or pre-kindergarden
programs. Resources under this Agreement shall be used with equal or larger
resources provided by another organization or organizations such as the
Pinellas County School Board, the Clearwater YWCA, or the Pinellas County
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Appendix A
Page 2
Juvenile Welfare Board.
III. North Facility Improvement
Outstanding Health Department issues will be resolved by replacing the worn
kitchen floor with approximately 300 square feet of ceramic tile or such
other treatment as appropriate and by replacing the existing cabinet based
3 part sink with a free standing 3 part sink. Other necessary facility
improvements may be made if there are available funds.
SCHEDULE
I. Title XX Match and Operating Expenses
This is a continuing program. SPECIFIC SERVICES will be provided for the
period from the later of the full execution of this Agreement or October
1, 1989 through September 30, 1990. If this Agreement is fully executed
after October 1, 1989, a pro-rata adjustment in the performance expected
may be made.
II. South Facility Relocation and Expansion
A new facility location will be determined by the later of the full
execution of this Agreement or November 1, 1989. Plans development and
government permitting process will be initiated within 1 month of the
determination of the new location. Construction activity will begin within
6 months of the determination of the new location and the facility will be
operational by 11 months after the determination of the new location.
III. North Facility Improvement
The SPECIFIC SERVICES will be completed by the later of 3 months after the
full execution of this agreement or by December 31, 1989.
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Agency: Community Pride
Year: 1989 - 1990
APPENDIX B
Proiect Award
I. Title XX Match and Operating Expenses
Operating support of up to $4,400 will be provided for match and for
equipment and supplies. $3,818.88 of this total will be for match and the
balance for equipment and supplies, unless the City Community Development
Manager authorizes a different split of the $4,400.00 in writing.
TOTAL $ 4,400.00
II. South Facility Relocation and Expansion
Facili ty improvement funding of up to $12,000.00 will be provided for
relocation, expansion, and improvement of the South Center.
TOTAL $12,000.00
III. North Facility Improvement
Facility improvement funding of up to $3,400.00 will be provided.
TOTAL $ 3,400.00
GRAND TOTAL $19,800.00
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APPENDIX C
METHOD OF PAYMENT
All payments shall be on a reimbursement basis only.
All requests for reimbursement shall be supported by proper invoices, payrolls,
checks, receipts, and other documentation as requested.
Any program income shall be submitted to the CrTY through the DEPARTMENT at least
Quarterlv. Fees collected, if any, shall be reported but are not to be construed
as program income.
Requests for reimbursement shall not be reduced by any program income received.
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Subpllrt K-0ther Progrllm
Requirements
I 570,&00 General
(u) Section l04(b) c.' the Act provides
Ihot any grant under tiection 106 of Ihe
Act shall be u. ,c' oly if the grantee
certifies '10 the sllli6foction of the
Secrela'!)', among olher Ihings. Ihat Ihe
grgnt "wili' lie.conducted and
administered in conformity with Pub. L
M-352 and Pub. L. 00-264," and, further.
Ihal the grantee "will comply with Ihe
olhcr provisions of this title and with
other applicable laws." Section l04(d)(l)
of the Act requires thai the Secretary
dt:lermine wilh respect 10 grants made
pursuontto section l06(b) (Entitlement
Grants) and 106(d1l2}(B) (HVD-
Administered Small Cities Grants), al
least on an annual basis, among other
things. "whether the grantee has carried
outlits] certifications in compliance
with the requirements and the primary
objectives of this title and with other
applicable laws' . . ." Certain other
statutes are expressly made applicable
to Rctivities assisted under the Act by
the Act itself. while other laws not
referred 10 in the Act may be applicable
to such activities by their own terms.
Certain statutes or Executive Orders
which may oe applicable to activities
assisted under the Act by their own
tenus are administered or enforced by
governmental departrnenu or agencies
other than the SecretBJ)' or the
DepartmenL This Subpar1 K enumerates
laws which the Secretary will treal as
applicable to grants made under section
106 of the Act, other thaI! gTants 10
-,\ APPENDIX D
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OTHER PROGRA}1 REQUlRE~lliNTS
Slates made pursuant to scclion l00(d)
of the Ac!. lor purposes 01 the
de termino lions described a bove to be
made hy the Secretary under Iiection
l04(d)(l) olthe Ac!. including statutes
expressly moue applicable hy the Act
and certain olher statutes IlOd Executive
Orders for which the Secrelary ha s
enforcement responsibility. The absence
of mention herein of any olher atstule '
for which the Secrelary does not ha ve
direcl enlorccmenl responsibility is nol
inlended 10 be IlIken 8S aD indication
Ihol. in the Secretory's opinion. such
sta lute or Executive Order b nol
applicoble to 8clivities assisted under
the Ac\. For laws which the Secretary
willlrealllS applicoble to granls made
to Slales under aection 100(d) ol the AcI
for purposes of the delermination
required to be made by the Secrelary
pursuant 10 aection 104.(d)(2) of the Act.
see ~ 570.496.
(b) This Subparl also eels forth cer1ain
additional program requirements which
the Secretary has determined to be
applicable to grants provided under the
Act as a mailer of administrative
dIscretion,
(c) In addition to grants made
pursuant to section 100(b) and
100(d)(2)(B) of the !\ct (Subparts D and F
of this Part respecuyely), the '
requirements of this Subpar1 K are
applicable to grants' made pursuant to
sections 107 and 119 of the Act
(Subparls E and G. respectively).
~ 570.601 Pub, L 8&-352 .nd Pub, L 90-
284; Executive Order 11063-
Section l04(b) of the Act provides that
ony grant under section 106 of the Act
shall be made only if the STanlee
ce'rtifiee 10 the ~atisfection of the
Secretary that the granl "will be
conducted and administered in
conformity with Pub, L 88-352 and Pub.
L. 90-284," Similarly, section 107
provides that no gTant may be made
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under thai .eclion (Secrelary',
Discretionary Fund) or section 11g
(UDAG) ",-ithoutl8tisloctory assurance)
10'lhe same effec!.
(a) "Pub, L ~52" refe,. \0 Tille VI
of Ibe Civil R~bla Acl of 1004 (-12 U.S.C.
2o,:)(xf el ,eq,), which provides thai no
person 10 the Uniled States shall on the
ground of rllce. color. or notional origin,
be excluded from pnrticipa lion In, be
denied the benefita of, or be aubjected \0
discriminalion under any program or
acllvlty receiv10g Federal finonclal
assislenca, Seclion 602 of the Civil
Righls Act of 1004 dire cis each Federal
depnrtmenl and agency empowered to
extend Federol financial assislance to
any program or activit)' by way of granl
10 ellecluale the foregoing prohibition
by issuing rules. regulations, or orders of
generlll applicability which sholl be
consislent with achicvement of the
'. s\otute authoritill1\ the financial
ossistance, HUO regula lions
implementing the requiremenls of Title
Vl wilh respect to HUD programs are
contained in 24 CrR Part 1. .
(b) "Pub. L 90-W4" refers 10 Tille VIII
of the Civil Righls Act of 1968 (42 U.S.C.
3G01 ~I ceq.). popularly known os the
Fair Housing Act. which provides that il
is the policy of the United States 10
provide, ",rjthin constitutional
limitations, for fair housing throughout
the United Stales and prohibits nny
person from discriminating in the sale or
rental of housing, the financing of
housing, or the provision of brokerage
services. 10cluding in any way making
unavailable or denying a dwelling 10
any.person. because of race. color.
religion, sex. or national origin. Tille
vm further requires the Secretary to
administer lhe programs and activities
rela ting to housing and urban
cievelopment1o a manner affinnalively
to further the purposes of Title VIII.
Pursuenlto this statutory direction. the
Secrelary requires that grantees
administer all programs and 8ctiyities
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related to housing and community
developmllnt in a manner to
offinnnlively further fllir housing.
(c) Exccutive Order 11003. as
Elmended by Executil'e Order 12259,
directs the Deportmenlto toke all action
necessary end oppropriate to prevent
discriminution because of race, color.
religion (creed). aex, or national origin.
in the sole. Icasing. renlal. or other
disposition of rC6identiol property end
rcloted focilitics (including land to be
developed for residential usc). or in the
use oroccuponcy thereof. if &uch
property ond relnted focilitics ore,
among other things. provided in whole
or in part with the lIid of loans.
ild\'ances. grants. or contributions
n~rce\i.to be mnde by the Federal
Government. I'IUD regulutions
implementing Executive Order 11003 are
contained in 24 CFR Part 107.
~ 570.602 Section 109 olth. Act.
[a) Section lW of the Act requires Ihal
no person in the United Slates shall on
the ground of race. color, na tional origin
or sex.. be excluded from participation
in, be denied the benefits of. or be
subjected to discrimination under. any
program or activity funded in whole or
in part with community development
funds made available pursuant to Ihe
AL:t. For purposes of this section
"program or aclivit{' is defined as any
function conducted by an identifiable
administrative unit of Ihe recipient. or
by any unit of governme~l. ~ubrecipienl.
or priva Ie conlractor receiving
communi!)' development funds or loans
from the recipient. "Funded in whole or
in pari with community dev'elcpment
funds' means that community
development funds in any amounl in the
form of granl5 or proceeds from BUD'
guaranteed loans have been transferred
by the recipient or a subre~;pient \0 an
identifi<ible administrative unit and
disbu.sed in a program ~r activity.
(b) Specific discriminatory actions
prohi/;iled and correcti"e oclions.
(1) A recipient may nol. under any
program or acti\'ity to which the
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regulaliuns of this Pari may apply
directly or lhroufh contractual or other
IIrrang~mcnts. on the ground of rlice.
color. notional origin. or sex:
(i) Deny allY facilities, scrvices,
financiulnid or other hendits provided
under the progrum or activity.
(ii) I'ro\'ide ony faeilitic~, Ben-ices.
financial nid or other hendils which are
different. or ore provided in II differenl
form from Ihul provided to others under
the program or oclivily.
(iii) Subject 10 segregated or seporale
treatment in ony fucility in. or in any
mailer of process relalc;d to receipt of
any service or benefit under the program
or uctivity,
(iv) Restrict in IIny woy occess 10. or
in Ihe enjoymenl of ony advanlage or
privilege enjoyed by others in
connection with fa cili lies. services.
financial aid or other benefils under the
program or aClivity,
(v) Treat an individual differently
from olhers in determining whether the
individual aa tisfies any admission.
enrollment. eligibility, membership, or
other requirement or condition which
the individuol must meet in order to be
provided any facilities, Bervices or olher
benefit pro\'ided under Ihe program or
activi:v,
(vi) Deny an opportunity 10 parlicipate
in a progr<im or activity as an employee,
(2) A recipienl may nol utilize criteria
or methods of odminislration which
have the effect of subjecling individuals
to discrimina tion on Ihe basis of race,
color. nalional origin. or sex. or have Ihe'
effect of defealing or subslantially
impairing accomplishment of the
objectives of Ihe program or activity
wilh respect 10 individuals of a
parlicular race. color, national origin. or
sex.
(3) A recipient. in determining Ihe site
or location of housing or facilities
provided in whole or in part wilh funds
under this part may nol make selections
of such site or localion which have the
effect of ex.c1uding individuals from.
denying them the benefits of. or
subjecting them 10 discriminalion on the
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ground of rocc. clllor. nalional crigin. {1f
Bex: or which have the purpo~e or effect
of defeotinR or substantially impairing
the ilcr.umpli6hment of tbe objectives c!
the Act nnd of Ihis seCtion.
(411illn adminislering a program or
activity funded in wbole or in parI wilh
CDnC funds rcgarding which the
recipient haB pre\'iously discriminated
ogainsl persons on the ground of race.
color. notional origin or sex.. the
recipienl musltoke offinnative action 10
overcome the effects of prior
discrimination.
(ii) E\'en in the obsence of 6uch prior
discrimination, a recipient in
administering a program or octivity
funded in whole or in part with COI3C
funds should tuke offirmati\'e action to
overcome the effects of conditions
which would otherwise resull in limiting
participatiun by persons of a pnrlit;ular
race. color, national origin or sex.
Where previous discriminotory practice
or usage tenus, on the ground of race.
color. na lional origin or Bex.. 10 ex.clude
individuals from parlicipalion in. to
deny them the benefits of. or to subject
them to discrimination under any
program or activity to which this pari
applies. Ihe recipient has an obligc:lion
to take reasonable action 10 remove or
overcome Ihe consequences of the prior
discrimina lory pnlclice or usage. ilOd to
accomplish the purpose of Ihe Act.
(iii) A recipienl shall not be prohibited
by lhis part from laking any aclion
eligible under Subpart C to ameliorate
an imbalance in services or facilities
provided to any geographic area or
specific group of persons wi lhin its
jurisdiction. where the purpose of such
action in to overcome prior
discriminalory practice or usage.
(5) Notwithstanding anything to the
contrary in this section, nothing
contained herein shall be construed to
prohibit any rficipienl from maintaining
or constructing separate living facililie~
or rest room facilities for the different
sexes. Furthermore, selectivity on the
basis of sex. ia nol prohibited when
institutional or cllstodial services can
.~
.,
-1 APPENDIX E
I SECTION 3 CLAUSE
J
,
TilE FOLLO\HNG SECTlO:-l ) CLAUSE SHALL SE INCLUDED IN ALL CONTRACTS FOR \.lORK IN
CONNECTION \.lIDl A SECTION ) PROJECT:
A. The ~ork to be performed under this contract is on a project assisted
under a program providing direct Federal financial assistance from
the Department of Housing and Urban Development and is subject to the
requirements of Section) of the Housing and Urban Development Act of 1968,
as amended, 12 U.S.C. 170u. Section 3 requires that to the greatest extent
feasible opportunities for training and employment be given lover income
residents of the project area and contracts for vork in connection ~ith the
project be a\Jarded to business concerns \Jhich are located in, or owned in
substantial part by persons residing in the area of the project.
B. The parties to this contract \Jill comply ~ith the provisions of said Section 3
and the regulations issued pursuant thereto by the Secretary of !lousing and
Urban Development set forth in 24 CFR, and all applicable rules and orders of
the Department issued thereunder prior to the execution of' this cont ract. The
parties to this contract certify and agree that they are under no contractural
or other disability ~hich \Jould prevent them from complying ~ith these
requirements.
C. The contractor ~ill send to each labor organization or representative of
~orkers.~ith ~hich he has a collective bargaining agreement or other contract
of understanding, if any, a notice advising the said labor organization of
~orkers' representative of his commitments under this Section 3 Clause and
shall post copies of the notice in conspicuous places available to employees
and applicants for employment art raining.
D. The contractor ~il1 include this Section) Clause in every subcontract for
~ork in connectiqn ~ith the project and \Jill, at the direction of the
applicant for or recipient of Federal financial assistance, take appropriate
action pursuant to the subcontract upon a finding that the subcontractor is
in violation of regulations issued by the Secretary of Housing and Urban
Development, 24 CFR. The contractor will not subcontract \Jith any subcontractor
where it has notice or kno\Jledge that the latter has been found in violation 'of
regulations under 24 CFR, and ~il1 not let any subcontract unless the
subcontractor has first provided it with a preliminary statement of ability to
comply ~ith the requirements of these regulations.
E. Compliance with the provisions of Section 3, the regulations set forth in 24 eFR,
and all applicable rules and orders of the Department issued thereunder prior to
the execution of the contract, shall be a condition of the FederAl financial
assistance provided to the project, binding upon the applicant or recipient for
such assistance, its successors, ~nd assigns. Failure to fulfill these
requirements shall subject the applicant or recipient, its contractors and sub-
contractors, its successors, and assigns to those sanctions specified by the
grant or loan agreement or contract through ~hich Federal assistance is provided,
and to such sanctions as are specified by 24 eFR 135.
E-l
,
, APPENDIX F
NOTICE O~ ._~UlREMEN'1' FOR A.fTIR'1ATIVE ACT]
TO ENSURE EQUAL EMPLOYMENT OPPORTUNITY
(EXECUTIVE ORDER 11246)
1. The Offeror' 5 or Bidder I 5 attention is called to the "Equal OpportW1i ty
Clause" and the "Standard Federal EquAl Employment Opportunity ConstrUc-
tion Contract Specifications" set forth herein.
2. The goals and timetables for minority and female participation, expressed
in percentage terms for the Contractor's aggregate workforce in each
trade on all cOnsLruction work in the covered area, are as follows:
A. Goals for Female Utilization, All Trades:
AREA COVERED
Goals for Women apply nationwide.
GOALS AND 'TIMETABLES
TiJnetable
Goals
(percent)
From Apr. 1, 1978 until Mar. 31, 1979.... 3.1
From Apr. 1, 1979 until Mar. 31, 1980.... 5.1
From Apr. 1, 1980 until l'1ar. 31, 1981.... 6.9
B. Goals for ~~noritv Utilization:
TA,!1PA-ST. PETERSBURG, FLA., AREA
Area covered: P~llsborough, Pasco, and Pi~ellas
Counties, Fla.
Goals and Timetablesl
Trade
Goal
(percen t)
..
All. . . . . . . . . . . . . . . . . . . . . . . . . .
17.9
IFor the life of the project.
~nese goals are applicable to all the Contractor's consL~ction work
(whether or not it is Federal or federally assisted) performed in the
covered area.
The Contractor's co~pliance witn the Executive Order and L~e regulations
in 41 C:R Part 60-4 shall be based on its i~pleroentation of L~e Equal
OpportQ~ity Clause, specific affirmative action obligations recruired by
F-l
the specifications le'l:1 fort.h in 41 erR 60-4. J (a), ani \':5 efforts to :neet
the goals established for the geographical area .....hex; L'1e contract
resulting from this solicitation is to be performed. The ho~S of minority
and female employment and training must be substantially uniform throughout
the length of the contract, and in each trade, and the contractor shall
oake a good faiG~ effort to employ minorities and women evenly on each of
i ~ projec~. The transfer of minori ty or female employees or trainees
from Contractor to Contractor or from project to project for L'1e sole
purpose 0f meeting the Contractor's goals shall be a violation of the
contract, the Executive Order and L~e regulations in 41 CFR Part 60-4.
Compliance with L'1e goals will be measured against the total work ho~s
performed.
3. The Contractor shall provide \.Titten notification to the Director of G~e
Office of Federal Contract Compliance Programs ....ithin 10 ....orking days of
a....ard of any constrUction s~contract in eXcess of SlO,OOO at any tier
for constrUction work under the contract resulting from ulis solicitation.
The notification shall list ~'1e name, address and telephone number of the
subcontractor; employer identification number; estiz~ted dollar amount of
the subcontract; estimated starting and completion dates of the subcontractl
and the geographical area in which the contract is to be perfo~ed.
4. ]>.5 used in this Notice, and in the contract resulting from this solici to. tion,.
the "covered area" is Pinel1as County, :lorida.
60-4.3 (a)
EQUAL OPPORTUNITY CLAUSE
During the perfo::1I'~nce of this contract, the contractor agrees as follo....s:
1. rne contractor will not discriminate against any employee or applicant
for employment because of race, color, religion, sex, or national origin.
rne contractor ....ill take affirmative a~tion to e~sure that applicants are
employed, and that employees are treated curing employment ....iL~out regard
to their race, color, religion, sex, or national origin. Such action shall
include, ~ut not be limited to the follo....ing: Employment, upgrading,
demotion, or transfer; recruitment or recruit.JTIent advertising; layoff or
terminatipn, rates of payor other forms of comper.sation; and selection
for training, including apprenticeship. rne contractor agrees to post
in conspicuous places, available to employees and applicU1tS for ~ploy-
ment, notices to be provided setting forth the provisions of this non-
discrimination clause.
2. The contractor ....ill, in all solicitations or advertiseDents for employees
placed by or on behalf of the contractor, s~te that all Qualified
- ..
applicants will receive consideration for employment ....iG~out rega=d to '
race, color, religion, sex, or national origin.
3. The contractor ....ill send to each labor union or representative of ....orkers
....ith ....hich he has a collective bargainir.g agreement or other contract or
~6ers~nding, a notice to be provided advising the said labor union or
....orkers' representatives of the contractor's co~tments under this
section, and shall post copies of L~e notice in conspicuous places avail-
ab.le to employees and applicar.ts for employment.
F-2
"
The con t:actor ",'i 11 t'~~~lY
of September 24, 1965, And
of the Secretary of Labor.
'o.,:th all provisions of [Xi _ive Order 11246
of the rules , regulations; andre1evan t orders
c
5. The contractor will furnish all information and reports re~red by
Executive Order 11246 of Septerrber 24, 1965, and by rules, regulations,
and orders of ~~e Secretary of Labor, or pursuant thereto, and will permit
access to his books, records, and accounts by L~e a~~nistering agency
and the Secretary of Labor for purposes of investigation to ascertain
compliance with such rules, regulations, and orders.
6. In the event of the contractor's non-compliance with the nondisc~imination
clauses of this contract or with any of the said rules, regulations, or
orders, this contract may be canceled, tenninated, or suspended in whole
or in part and the contractor may be decla~ed ineligible for further
GoverrJDent contracts or federally assisted constrUction contracts in
accordance with procedures authorized in Executive Order 11246 of
September 24, 1965, or by rule, regulation, or order of the Secretary
of Labor, or as otherwise provided by law.
7. l~e con~actor will include ~~e portion of the sentence ~ediately
preceding paragraph (1) and the provisions of paragrapr~ (1) ~hJough (7)
in every subcontract or purchase oreer unless exempted by rules, regula-
tions, or orders of the Secretary 'of Labor issued pursuant to section
204 of ~xecutive Order 11246 of September 24, 1965, so that such p~ovisions
will be bineing upon each subcontractor or vendor. The contractor will
take such action with respect to any subcontract or purchase order as
~~e administering agency may eirect as a means of enforcing such provisions,
including sanctions for non-compliance: Provided, ~_ver, That in t')e
even~ a contractor ~ecomes involved in, or is threaten0- with, litigation
with a ~ubcontractor or veneor as a result of such direction by the
administering agency, the contractor may request the United States to enter
into such litigation to protect the interests of the United States.
STAlmJ..RD FEDERAL EQUAL EHPLOYM...~T OPPORTUNITY CONSTRUCTION CONTRACT
SPEClFICATIONS (EXECUTIVE ORDER 11246)
L As used in these specifications:
a. "Covered area" means c~e geoq=aphical area described in ~~e solicita-
tion fro~ which this contract resulted.
b. "Director" means Director, Office, of Federal Contract COIDpliahce
Progr~~, Onited States Department of Laber, or any person to whom
the Director delegates authority.
c. n~?loyer identification n~~er" me~~~ the Feceral Social Security
nurrber usee OD ~~e Employer's Quarterly Federal Tax Return, O. S.
TreastL..ry Department Fo::-:::n 941.
d. "P.inori ty" inc 1 udes :
F-3
(1) Black (all pJrs~ns having origins in any of ~~ Black
African racial groups not of Hispanic originr~
(2) Hispanic (all persons of Hexic~, Puerto Rican, Cuban,
Central or South American or other Spanish Culture or
origin, regarcless of race)/
(3) Asian and Pacific Islander (~ll persons having origins
in any of the original peoples of G~e far East, Southeast
Asia, the Indian Subcontinent, or the Pacific Islands); and
(4) Junerican Indian or Alaskan Native (all persons having
origins in any of the original peoples of North America and
maintaining identifiable tribal affiliations through member-
ship and participation or community identification).
2. Whenever the Contractor, or any Subcontractor at any tier, subcontracts
a portion of the work involving any constrUction trade, it shall
physically include in each subcontract in excess of $10,000 the 'provi-
~tons of these specifications and the Notice which contains the ~p-
plicable goals for minority and female participation ~~d which is set
forth in the solicitations from which this contract resulted.
3. If the Contractor is participating (pursuant to 41 CFR 60-4.5) in a
Hometown.Plan approved by G,e O. S. Department of Labor in the covered
area either individually or through an association, its affirmative action
obligations on all work in the Plan area (including goals and timetables)
shall be in accordance with that Plan for those trades ~hich have unions
participating in the Plan. Contractors must be able to demonstrate their
participation in and ccmpliance wiG' the provisions of any such Hometo~~
Plan. Each Contractor or Subcontractor participating in an approved Plan
is individually required to comply with its obligations under .the EEO
clause, and to make a good fait-I) e'ffort to achieve each goal under the
Plan in each trade in which it has employees. Tne overall good faith
performance by o~'er Contractors or Subcontractors ~oward a goal in an
approved Plan does not excuse any covered Contractor's or Subcontractor's
failure to take good faith efforts to achieve t.~e Plan goals and time-
table.
4. The Contractor shall implement the specific affirmative action standarcs
provided in paragraphs }a through p of these specifications. The goals
set forth in the solicitation from which this contract resulted are
expressed as percentages of the rotal hou::::-s of employment and training
of minori~' and female utilization the Con~actor should reasonabiy be
able to achieve in each const.-uction t=ade in-vhich 'it has employees in
~e covered area. The Cont=actor is eh~ected to make substantially
unifo~ progress toward its goals in each craft during the period
specified.
S. Neither the provisions of any collective bargaining agreement, nor the
failuze by a ~~ion with whom the Contractor has a collective barsaining
agreement, to refer either minori ties or wom€J1 shall excuse the Contrac-
tor's obligatior$ ~~der these specificatior.s, Executive Order 11246, or
the regula tions promulgated pursuant thereto.
F-4
...
.0. ..[', order f.c= ~,e ;10_;.....C:~/...~:-:1 :.::a:';~.l.ns :10'~S 0;' cli-';;'~''''::L:''....-\...:::, c..~.-_ _.;..:..:._..''':'~J
t.o be counted in meet 1" , \t..'le 9oal~, such app:e~tices ~nd t;:ainees must.
be employed by the C~1L~ctor dur~ng the tra1n~ng pe~~~ and the
Contractor must have made a commitment to employ the a~rentices and
trainees at the completion of their training, subject to the availabil-
ity of employment opportunities. - Trainees ~ust be trained pursuant to
training programs Approved by the U. S. Department of Labor.
7. TI1e Contra.::tor shall take specific affirmative actions to ensure equal
employment opport~~ity. ~e evaluation of the Contractor's compliance
....ith these si"ecifications. shall be based upon its effort to achieve
maximum results from its actions. The Contractor shall document these
efforts fully, and shall implement affirmative action steps at least as
extensive as the follo....ing:
a. Ensure and maintain a ....orking environment free of harrassment,
intimidation, and coercion at all sites, and in all facilities at
....hich the Contractor's employees are assigned to ....ork. The
Con tractor, ....here possible, ....ill assign two or more.....omen to each
construction project. The Contractor shall specifically ensure that
all foremen, superintendents, and other on-site supervisory personnel
are a....a=e of and carry out the Contractor's obligation to maintain
such a ....orking environment, ....ith specific attention to minority or
female individuals ....orking at such sites or in such facilities.
b. Establish and maintain a current list of minority and female
recruitment sources, provide ....ritten notification to minority and
female recruitment sources and to community organizations ....hen the
Contractor or its unions have employment opportuni ties available,
and maintain a record of the organizations' response~.
c. Maintain a current file of the names, addresses and telephone
numbers of each minority and female off-the-street applicant and
minority or female referral from a union, a rec~itment source or
cotrnllunity organization and of ....hat 'action ....as taken ....ith respect
to each such individual. If such individual ....as sent to t..~e union
hiring hall for referral and ....as not referred back to L,e Contractor
by L~e union or, if referred, not employee by the Contractor, this
shall be documented in the file ....ith the reason therefor, along ....ith
....hatever additional actions the Contractor may have taken.
'\
d. Provide immediate ....ritten notification to the Director when the
union or unions ....i~' which the Contractor has a collective
bargaining a9~eement has not referred to the Cont=actor a minority
person or ....oman sent by the Contractor, or when the Contractor has
other infonna tion that the \111ion referral process has i.mpeded .the
Con~actor's efforts to meet its obligations.
e. Develop on-~~e-job training opportunities and/or participate in
training programs for the area ~hich expressly include minorities
and women, including upgrading programs and apprenticeship and
trainee programs relevant to the Contractor's emplo]~ent needs,
especially those programs f~,ded or approved by the Depa=tment of
Labor. The Contractor shall provide notice of these programs to
the sources compiled under Th above.
f. Disseminate the Contractor's EEO policy by providing notice of the
policy to unions and training progr~~ and requesting ~~eir coopera-
tion in assisting the Cont=actor in ~eeting its EEO obligations; by
including it in any policy manual and collective bargaining agreement; by
F-5
I
"
\
J
...
publicizing it in the company newspaper, ~nnu~l report, etc.; by
specific review of the policy with ~ll management personnel and
~~th all minority and female employees ~t least once a year; and
by posting the company EEO policy on bulletin boards accessible
to all employees at each location where construction ....ork is
performed.
g. Review, at least annually, the company's LEO policy and affirmative
action obligations under these specifications ....i~~ all employees
having any responsibility for hiring, assignment, layoff, termina-
tion or o~~er employment decisions including specific review of
these items wie. onsite supervisory personnel such as Superintendents,
General Foremen, etc., prior 'to ~~e initiation of construction ....ork
at any job si te. A wri ttenrecord shall be made and maintained
identifying the time and place of these meetings, persons attending,
subject n~tter discussed, and disposition of the subject matter.
h. Disseminate the Contractor's EEO poli~' externally by including
it in any -dvertising in the news media, specifically including
minori ty and female news media, and providing ....-ri tten notification
to and dis-=ussing the Contractor's LEO policy with other Con trac-
tqrs and Subcontractors with whom the Contractor does or antici-
pates doing business.
i. Direct its recrui tment efforts, both oral and wri tten, to minority,
female and cOlIlIDunity organizations, to schools with minority and
femal~ students and to minority and female recruitoent and training
organiza tions serving the Cont=actor' s rec::ui tIDent area and employ-
ment needs~ Not later than one month prior to ~~e cate for the
acceptance of applications for apprenticeship or other training
by any rec::uitment source, the Contractor shall send written
notification to organizations such as ~~e above describing ~~e
openings, screening procedures, and tests to be used in the selection
process.
j. Encourage present minority and female employees to recruit other
minority persons and ....omen and, where reasonable, provide after
school, summer and vacation emplo]~ent to minority and f~~le youth
both on the 5i te' and in other ~eas of a Contractor I s ......orkforce.
k. Validate all tests and other selection resuirements ......here there
is an obligation to do so ~~der.4l CFR Part 60-3.
1. Conduct, at least annually, an invento~ and evaluation at least of
of all minority and female personnel for promotional opportunities
and encourage these employees to seek or to prepare for, ~~ough
appropriate training, et~., such opportunities
m. E~U=e that seniority practices, job classifica~ions, ~ork assign-
ments and o~~er personnel practices, do not have a discri.m.ina tory
effect by continually monitoring all personnel and employment
related activities to ensure that the EIO policy and the Contractor's
F-6
.,
'\
these specifications are being .f.iied
n. Ensure that all facilities and company activities are non-
segrated except that separate or single-user toilet and
necessary changing facilities shall be provided to assure
privacy between the sexeS.
obligations
uncleJ
out..
o. Document and maintain a record of all solicitations of offers
for subcontracts from minority and female cons~-uction
contractors and suppliers, including circulation of solicitations
to minority and female contractor associations ~d other business
associa tions .
p. Conduct a review, at least annually, of all supervisors' adherence
to and performance under the Contractor's EEO policies and
affirmative action obligations.
8, Contractors are encouraged to participate in voluntary associations
which assist in fulfilling one or more of their affirmative action
obligations (7a through p). The efforts of a contractor association,
'joint contractor-union, contractor-colIlIIluni ty, or other similar group
of which the contractor is a member and participant, !:laY be asserted
as fulfilling anyone or more of i t.S obliga tions under 7a through P
of these Specifications provided that the contractor actively partic-
ipates jn the group, makes every effort to assure that the group has
a positive impact on the employment of minorities and ~ODen in the
indust-"J', ensures that the concrete benefi ts of the program are
reflected in the Contractor's minority and female workforce partic-
ipation, makes a good faith effort to meet its individual goals and
timetables, and can provide accesS to documentation which demonstrates
the effective~ess of actions taken on behalf of the Contractor. The
obligation to comply, ho~ever, i~ the Contractor's and failure of such
a group to fulfill an obligation shall not be a defense for the
Contractor's noncompliance.
9. A single goal for ~inorities and a separate single goal for ~omen have
been established. The Contractor, however, is required to provide
equal emp~oyment opportunity and to take a=firmative action for all
minority groups, both male and fe~~le, and all women, both minority
and non-minority. Consequently, ~~e Contractor may be in violation
of the Executive Order if a particular group is employed in a substan-
tially disparate manner (for example, even though the Contractor has
achieved its goals for women generally, G~e Contracto~ ~~y be in
violation of the Executive Order if a specific minority group 04 women
is underutilized).
10_ Tne Contractor shall not use the goals and timetables or affirmative
action standards to discriminate against any person because of race,
color, religion, sex, or national origin.
11. The Cont=acto~ shall not enter into any Subcontract wib~ any person
or fi~ debarred from Government contracts pursuant to Executive
Ord~r 11246.
F-7
"
12. The Conuactor shJl.... "carry out such sanctions and II ,1 ties for
violation of these specificatior~ and of the Equal~pportunity Clause,
-including suspension, termination and ~ancellation of existing sub-
conuacts as may be imposed or ordered pursuant to Executive Order
11246, as ~ended, and its implementing regulations, by the Office
of Federal Contract Compliance Programs. Any Contractor who fails
to carry out such sanctions and penalties shall be in violation of
these specifications and Executive Order 11246, as amended.
13. The Ccntrac::or, in fulfilling its obligations under these specifications,
shall irnplementspecific affinnative action steps, at least as exten-
sive as those standards prescribed in paragraph 7 of these specifica-
tions, so as to achieve ~imum resul ts from i,ts efforts to ensure
equal emplo)~ent opportunity. If the Contractor fails to comply with
the requirements of the Executive Order, the implementing regulations,
or these specifications, the Director shall proceed in accordance with
41 CI'R 60-4.8.
14. The Contractor shall designate a responsible official to ~nitor all
employment related activity to ensure that the company EEO policy is
being carried out, to submit reports relating to th~ provisions hereof
as may be required by the Government and to keep records. Records
shall at least include for each employee the name, address, telephone
numbers, const-'l1ction t=ade, uni'on affiliation if any, employee
identification number when assigned, social security number, race,
sex, st:atus (e.g., mechanic, apprentice, trainee, helper, or laborer),
dates of changes in status, hours worked per week in the indicated
trade, rate of pay, and locations at which the work was performed.
Records shall be maintained in an easily understandable and retrievable
fo~; ho~ever, to the degree that existing reccrds satisfy this
requirement, contractors shall not be required to ~aint:ain separate
records.
15. Nothing herein provided shall be cons trued as a limi ta tion upon the
application of other laws ....hich establish different standards of
compliance or upon the application of requirements for the hiring of
local or o~~er area residents (e.g., those under L~e Public Works
Employment Act of 1977 and '~e Community Development ~lock Gr~t
Program) .
~
F-8
1\
"
APPENDIX G
OMB
Circular A-110
.I
..
I
.I
Office of Management and Budget Circular A-110 (7/30/76)
A-110:1
OFFICE OF MANAGEMENT AND
BUDGET
IClrcular No, A-110]
GRANTS AND AGREEMENTS WITH INSTI-
TUTIONS OF HIGHER EDUCATION,
HOSPITALS, AND OTHER NONPROFIT
ORGANIZATIONS
Uniform Administrative Requirements
JULY I, 1976,
To the heads of executive departments
and establishments.
Subject: Uniform administrative re-
QUirements for grants and other agree-
ments wIth Institutions of hizher edu-
cation, hospitals, and other nonprofit
organizations
J. Purposc.-This Circular' promul-
gates standards for obtaining consisten-
cy nnd Uniformity among Federal agen-
cies in the administration of grants to,
and other R?reements with, pUblic and
private Institutions of higher education,
public and private hospitals, and other
Quasi-public and private nonprofit or-
ganizations. This CirculA.r does not apply
to grants, contracts, or other agreements
,between the Federal Government and
units of State or local governments
covered by Federal Management Cir-
cular 74-7,
2, Effective date.-The standards in
the attachments to this Circular ",'ill be
ll.pplled as soon as practicable but not
later than January 1, 1977,
3. Superse.ssion.- This Circular res-
cinds and replaces parts III and IV of
the AppendiX to Federal Management
Circular 73-7, Administration of college
and university resea.rch grants.
4. Policy intc71.t.-The uniform stand-
ards and requirements included in'the
attachments to this Circular replace the
varying and often conflicting require-
ments that have been imposed by Fed-
eral agencies as conditions of grants and
other agreements with recipients.
5. Applicability and. scopc.-Except as
provided belem', the standsrds promul-
gated by this Circular are applicable to
all FederaJ agencies. If any statue ex-
pressly prescribes policies or speCific re-
Quirements that difIer from the stand-
ards provided herein, the provisions of
the statute shall govern.
The proviSiOns of the attachments of
this Circular shall be applied to subre-
cipients performing substantive work
under grants that are passed through or
awarded by the primnry recipient if such
subreciplents are organizations de-
scribed in paragraph 1.
6. Definitions.
a. The tenn "grant" means mone\' or
property provided in lieu of money paid
or furnished by the Federal Government
to recipients under programs that pro-
vide financial assistance or that provide
support or stimulntion to' accomplish a
public purpose. The term "other agree-
ments" does not Include contracts which
are required to be entered into and ad-
ministered under procurement laws and
regulations. Grants and other agree-
ments exclude Ca) technical assistance
~;~~_:~.s. which prOVide services instead
general revenue sharing, 10:J.ns, loz.n
guarant.ees, or insurance. and Ccl direct
payments of any kind to individuals.
b. The term "recipient" Includes the
following types of nonprofit organiza-
tions that are receiving Federal funds
from a Federal aj:leney or through a
stute or local government:
Public and private Institutions of high-
er education: pUblic and private hos-
pitals: and other Quasi-public and pri-
va te nonprofit organizations such as (but
not limited to) commtmity ;l,Ction agen-
cies, research Institutes, educaUonnl as-
sociations, and health centers.
The term does not include foreign or
international organizations (such as
agencies of the United Nations) and
Government-owned contractor operated
facilities or research centers providing
continued support for mission-oriented,
large scale programs that are Govern-
ment-owned or controlled, or are de-"
signed as federally-funded resenrch and
development centers.
7. RCQucsts lor cxccptlons,-The Office
of Management and Budget may grant.
exceptions from the requirements of this
Circular when exceptions are not pro-
hibited under existing laws.
However, In the interest of maximum
uniformity, exceptions from the re-
Quirements of the Circular v:ill be per-
mitted onlv In unusual CRSes. Agencies
may apply -more restrictive requirements
to a class of recipients when approved by
the Office of Management and Budget,
8, Attachme71.ts.-The standards pro-
mulgated by this Circular are set forth
in the Attachments, which arc:
Attachment ^ Cash '"depositories.
Attachment B Bonding and Insurance.
Attnchment C Retention and custodial re-
G u Ire menu; lor records,
Attachmen.t. D Pr~ram Income,
Attachment E Cost shru-Ing and m"tcblng.
Attachment F Standards for llnanclnl man-
ngement systems.
Attachment G Flnnncl,,1 reporting require-
ments.
Attachment H Monll.orlng and reporting
program perlormlUlce.
Attachment I Payment requirements,
Attachment J Revision of finnnclnl plans,
Att.a.chment. K Closeout procedurcs.
Att"chment L S,uspenslon nnd t.ermlnatlon
procedures,
Att.achment M Stnr,dard lorm lor applyIng
lor lederal ...~slste.nce.
Attachment. N Property management stand-
ards.
Attachment 0 Procurement standards.
9. Exceptions lor certain recipicnis,-
Notwithstanding the provisions of para-
graph 7 if an applicant/recipient has a
history of poor performance. is not fi-
nanCially stable, or Its management sys-
tem does not meet the standards pre-
scribed in the Circular, Federal agencies
may impose additional requirements as
needed prCtvided that such applicant/
recipient is noWled in writing as to:
a, Why the additional standards are
being imposed:
b. what corrective action is needed.
Copies of such notifications shall be
sent to the Office of Management and
Budget and other agencies funding that
recipient at tJ1e same time the recipient
:~ __ ~~;r. ~~:
10, Rcsponsibililies,-Agencies respon-
sible for administ.ering programs U1at in-
volve grants and other agreements with
recipients shall issue the appropriate
regulations necessary to implement the
provisions of this Circular. All portions
of :;uch regulations that involve record-
keeping and/or reporting reQuircll1cnl.s
subJect to the provisions of the Federal
P.eporl.s Act and OMB Circular A-40
must, be submitted to OMD for clcarance
before bcing introduced into use, Upon
,request all regulations and instruction:;
implemcnting this Circular shall be
furnished to tlle Office of Managcment
and Budget, Agencies shall also desig-
nate an official to serve as t.he agency
representative on matters relating to the
!mplementation of this Circular. TIle
name and title of su(;h representative
shall be fumL~hed to tl1e Office of Man-
:lgement and Budget not later than Au-
~usl 30, 1976.
11. InQuirics.-f'urther information
concerning this Circular may be obtained
by contracting the Financial Manage-
ment Branch. Budget Review Division.
O!ftce of Management and Budget,
Washington, D.C. 20503, telephone 395-
3993.
JAMES T. LYNN,
Director.
ArrACHMf:NT ^.~lRcuLAn No. A-110
CASH DI:J"'OSrrORIE.6
1. This attachment. sets lorth standards
governing the use 01 banks and ot.her In-
stitutions I\S cJeposltorlcs 01 lunds advanced
under grnnLs an,d other agreements,
2, Except lor situations described In parll-
gr"phs 3. 4, and 5, no Federal sponsoring
agency shall:
a, Req ulre physical segreglltlon 01 cn.sh de-
posl t.orles lor funds which are prOVIded to a
recipient,
b. Establish nny eligibility rcqulr,ements
lor casb deposltorle.s lor funds ,,'hlch are pro-
vided to a r-cclplent.
3,}-_ separat-e b"nk a~count shall be requlre
,,'hen applicable lett.er-ol-credl t. agreements
provide that. d~awdo"'ns will be mr_de ,,'hen
the recIpient's checks e.re presented to the
bank lor p"yment.
4. Any moneys advnnced to n recipient
....hlch are subject to th~ contr~l... or rq~ula-
'.Ion 01 the Unlt.ed States or "ny 01 Its olTlcers.
rgenU; or employees' (publiC moneys is de-
fined In Tree.sury Clrcule.r No. 1:16, ns
amended) must be deposited In a bnnk with
Feder,,} Deposit. Insurance Corporation
(FDIC) lnsurnnce coverage nnd the h"lance
exceeding the FDIC coverage must be col-
laterally secured,
5, Consistent with the national 1(0,,1 01
expanding the opportunlt.les lor minority
buslne.. enterprises. reclplent.s "nd "ub-
rcclplents shall be encouraged '1.0 use minor-
Ity banks (a bank ,,'hlch Is o"'ned at lee.st 50
pcrcent by mlnorlt.y group members).
ArrACHMENT B,-CIRCOLAR No, A-110
BONDINC AND INSUJI,ANCE
:. This a~tachment sets lorth bonding nnd
Insurance requIrements lor t:rants and other
n1;Tcement.s "1th recipIents, No other bond-
Ing and Insurance requlremen,ts sh,,1l be Im-
posed other than those normally required by
the recipient.
2, Except as otherwise required by In"', "
grant or other agreement that requires the
contrl\ctlng (or subcontracting) lor con-
strue-lion or lnclllty Improvement.s shf\ll pro-
, _ _ . ~ ~ _ ~ _ , _ , ~ __. '" , .-.' 1 '" ~. !' '"
"
I
Office of Management and Budget Circular A-110 (7/30/76)
qUlremenU relAtlng to bid guuanteu. per-
10rmAIlce bondB. IUld payment bondJ; unless
tbe construcllon conUe.ct or subcontract e~-
eeedB UOO.OOO. For those ooOJtr"cts or .ub-
contra.ct.s e~ceedlng 1100.000, the Tederal
agency mAY accept the bondlng poliCY and
requlrementa 01 tbe gran\.ee provided tbe
Fe<!eral agenc)' has made' a determination
tbat the Qovernment'. Interest III adequately
protected. 11 such a determination bas not
been made, tbe minimum requirements .hall
be as 10110.....:
a. A tnd. vuorl>ntee Irom elU'h bld4Lr equh>-
e>lent 10 flue perc.:nl 01 the btc price.-
The "bid guarantee" shall consist 01 a firm
commitment .uch as 1\ bid bond, certUled
cbecle, or other negotiable In.troment I\C-
compl\nylng a bid as M-Surance that tbe bid-
der will, upon acceptance 01 hill bid. e~ecute
.uch contractual documents .... may be re-
quIred within the time speclIled.
b. A perlarmance bond on the part 01 the
contrlU'tar Jor ,100 pucent 01 the contrlU't
p"lcc.-h "perfoiniAnce bond" Is one e~ecuted
In connection with a contract to secure lul-
nllment 01 all the contrl\ctor'. obllgatlon.
under .uch con tract.
c, A payment bond on the pl>rt 01 the con-
trlU'tor lor 100 percent oJ the contrlU't
pn.ce.-h "payment bond" I. one e~ecuted In
connection wI tb a contract to .....ure pay-
ment .... required by law 01 all persons sup-
plying labor and material In tbe execution ot
the work provided tor In tbe contract.
3, Where tbe Federal Qovernment g-uaran-
\.ees or Insuru th~ repayment ot money
borrowed by the reCipient, the F'edernl
agency. at Ita discretion, may require ade-
quate bonding Lnd lnBuraoee It the boncUng
and Insurance requirements ot tbe recipient
are not deemed adequate to protect tbe In-
\.erest ot tbe F'ederal Government.
~. The l"ed.eral .ponaorlng agency may n-
quire adequate tl.dellty bond covere.ge ,,'bere
the recipient bas no coverage and the bond III
needed lto protect tbe Government'. Interest,
~. Wbere bonds are required In tbe .ltU.-
tlOM descrli>ed above, tbe bonds .hall be ob-
talned lrom compLnles holding certltl.cate<l or
authority .... acceptable .uretlea (31 cn
2:13) .
hTTACHWX"'T C.-Cn=LAJl No. h-110
a.rn:NTXON AN"D C'USTODIAL aLQUlll.XWXNT8 roa
a~oll.Ds
1. Thill attacbment .et.s torth record rcten-
tlon requirements ror gTLnts IUld otber agree-
rnen16 Wltb reclplenta, Fe<!eral sponaorlng
~DClee sball not Impoee any record reten-
tJon requlrement.s upon reclplents other thlUl
thO&e described below.
2. ExceJli tor paragrapb I. this attachment
also a.pplles to subreclplents as rei erred to
In paragra.ph ~ ot tbe b....lc clrculu.
3. :!"1nanclal records. .upportlng documents
statllltlcal recordJ;, e.nd all other records pertl~
nent to an "gTeemen t &hall b<: retaJned lor a
period or three yean, wIth the rollo"'lng
quall!lcatlons :
L. It &DY litigation. clalm or audit III started
bel ore the expIratIon or the 3-year period the
reoords shall be ret.a.lned until all lltl~atioD8
clalm&. or &udlt !lnCUngs lnvol1'lng the recor~
bAve been resolved
b. Records tor n~oerpendable pro;>erty &-C-
Qulred with F'eder.u rundB &ball be retaloed
lor 3 yca.rs &.Her 11.5 final dl.8poeltlon.
c. When r""-Ords lU'e tnulJIleTTedto or maln
t&lnec1 by the Federal 81>OO5Ortog &gency th~
~;relU' retention requlrem.ent 1.8 oot &pp'lIca-
c to tbe recipient,
~. Th.. retention period st.n..-ts rrom the
~~ ot the eubm1&lon ot the tl.oal ""P"nCU-
un report or, tor grants a.od other ~ee-
~enta that IU'C !'enewed annually. Irom the
nn t.e. or the fiubmL5alon of the Lnnual
LOclal fiUtUII re-port,
5, Recipient organl7AtlOD8 should be &U-
thorlze<! by the re<!eral sponsoring e.gency,
Ir they 60 desire, to substitute mlcrofilm
ooples In lieu or onrlnAl records.
6. The Federal sponsorlnj; agency 611&11 re-
quest tr&D6rer or certaIn record. to 11.5 cus-
tody rrom recIpient orge.nlr.atIOD8 ....hen It
de~ermJne6 that the re<:.ords possess long-
term retention value, However, In order to
svold duplicate record -keeping, a Federal
sponsoring agency may malte arrangemenU;
,,'lth recelplent organtz.atIOD8 to retaIn any
records that ..,.e continuously needed ror
Joint use.
7. The head or the Federal sponsoring agen-
C). and the Comptroller General or the United
States, or any 01 their duly authorized repre-
sentatives. .hall hsve access to an}' pertinent
book.s, documents, papers. and records or the
reclplen t organl.zll.tlon and their eubre-
clplent.s to make audits, examlnatlons, ex-
cerpts e.nd transcripts.
6. Unle&6 otherwISe require<! by la"', no
Pedersl eponsorlng agency ...'1 all place rt-
strlctlons on recipient organ1zatlons tbat w1l1
Ilmlt public l\.Ccess to the records or recipient
organlzatloru; that are pertinent to I' grant
or agreement excep~ when the agency can
demonstrate that such records must bc l<ept
con!ldentlal Lnd would have been excepted
trom dlSclOllure punlUant to tbe Freedom or
Inrormatlon hct (6 U.S.C. 552) l! the records
had belonged to the Federal ~nsortng
agency.
hT.TACHIlaHT D.-CmctlLAJl No. h-110
PIlOGaAI>4 n'cOMJ:
1. Yedera.! eponsorlng 81i8ncles shall a.pply
the standards set lorth In thla attacbmeot In
requiring recIpient organlzatloOll to a.ccount
ror program Inoome related to proJecta
tl.oanced 10 ,,'bole or In p&rt with Federal
runda. Program locome repr...ent5 gT08ll In-
come ....rned by tbe recipient trom tbe ted-
erally supported activities. Such earnlngs ex-
clude Interest earned 00 advaoces Lnd msy
Include, but wUl not be IlmJted to, Income
rrom service lees, .ale or commodl tI... , usage
or rent.a.1 tees. r.nd royalties on patenta a.nd
coprlghts.
2. Inter...t elU'ned on advances ot Federal
tundB &hall be remitted to the Yederal agency
except tor lnterest earned on adn.noea to
Statell or lnatrumen.talltlee ot " St.a.te as pro-
vIded by th.. Inuorgonrnment<>1 Coopera.tloo
Act or 1968 (Public LB.w ~77),
3. Proceeds rrom tbe aal.. ot reol and per-
sonal property either provide<! by the F'ed-
era.! Governmeot or purchase<! In wbole or In
p..,.t w1th Federal tuoda. .ball be handled lD
s.ccordLnce with Attachment 1\ to thlll dr-
cui..,. pertalolng to property ma.nAgement.
{, Unl...... tbe agreement prOVides other-
wISe, reclplent.s sball bave no obligation to
the Pederal Government wltb respect to
royalties received a.s a result or OOp)TI~hts or
patents produce<! under the gra.ot or other
agreement (~par&grapb 8. Attachment N),
5. All other program looome earned dur1ng
the project period shall be retalDed by the
recipient and. In accord....,ce with tbe grant
or other ~eement, .hall be:
a.' Added to tundJ; commJtted to the proJ-
ect by tbe Pedera.! spon60rlnE agency and
recipIent organtz.atlon e.nd be uae<I to rurtber
eligible program ObJectiVes;
b. Used to tl.nance tbe non-Fe<!eral &h..,.e
or tbe project wben approVe<1 by the Pedera.!
lIpOnaor1ng agency; or
c. Deoducted trom the total project coets
In determlnlng the net coats on which the
l'-eden.l &h..,.e ot coets ,,'UI be ba.aed.
hTTACHMrNT }:,-CDlCl:'1..U 1\0. h-ll0
COST S H..A.a.DfC AXD U. A. T'C H I..N 0
1. ThIS attachment seta rorth crlterta
p~ur... fOT the allo...-..bUlt" of rAr,h
.I
A-110:2
In-kind contributions made by recipients or
subreclplents (as rererred to In p..,.agTaph 5
or the b&51c circular). or tblrd partles In sat-
IJ;fylng cost sh..rlng and matching require-
ments or Federal sponsorlng agenclu. This
attachment also eslAbllahes criteria lor the
evaluatlon or In-kind contrIbutions made by
tblrd parties. ..nd .upplements the guidance
set lonh In Federal MAnagement Circular
13-3 ...'llIh respect to cost sharing on leder-
ally-sponsored researcb.
2, The 101l0",lng detl.nltlon. apply ror the
purpose 01 th18 a tlAcbment:
a. Project co.t. .-ProJect oosta are all aJ-
IC>W1\ble C06ts (as set lorth In the applicable
Federal C06t prinCiple.) Incurred by a recIpi-
ent and tb.. value or the In-klod contrlbu-
tlODll mad.. by the reclplen t or third parties
In accomplishing the obJectlves or the Frant
or other agreement during the project or pro-
gram period,
b. Co.t .lI.l>rlng I>M m.otchlng,-ln geoeral,
cost sharing and matchIng represent thst
portion or project or prOf(ram costs not borne
by the FeCteral Government.
c. Cl1Jh contrlbuUonJ.-Ca.sh contrlbutloD6
represent the reclplent.s c&lIh outlay, lnclud-
Ing the outlay 01 money contributed to the
recipIent by non-Federal third parties.
d. In-kind contrlbut~,-ID-klnd contrl-
butloDll represent tbe value ot noncash con-
trlbutloDll provld..d by the recipient and
non-F'ederaltblrd parties. Only ....hen au-
ubor1zed by Federal leglsla tlOD, may property
purcbased wltb Federal tunda be consld.eTed
as tbe recIpient's In-kJnd contributions. 1n-
klnd contributions may be In the lorm ot
cbargee lor real property Lnd non-expand-
able persooal property, and tbe value of
goods and services directly beoetltlng and
spec1fically Ident1fis.ble to the project or
program.
3. General g-uldelloes tor computing cost
sbulng or matching ue ... toUows:
a. Cost abarlDg or matcb.lnl> may cona18t,
or:
(1) Charges lncurred by the recipIent M
project ~. (Not ..11 charges noqulre e&ab
outlaY" by the recipient during 1'lle project
period; examplee e.re deprecIation Lnd use
cbarges ror buUc11ng8 Lnd equipment.)
(2) 1"roJect coet.s financed 'With e&ab con-
tributed or dons.ted to the recipient by other
non-l"edera.! public agencies and lnBtltutlons,
and private organizations Lnd lndlvldua.l8
and .
(3) Project costs represented by servlCCll
and real and personal property. or use there-
o!. donated by otber non-Federal public
e.genclea Lnd InstltUtloDll. tLnd pru.ate oTg1O-
nlZatloDll Lnd InCUrtdua1.e. "I
b. All contributions., both casb Lnd 1n-
kind., ahall be accepted .... part ot tbe reclpl-
ent's CDet sharlng ..od matchlng wben such
contrlbutloDll meet ..11 ot th'e rollowtng
crluorla :
(1) Are verUlAble trom tbe reclplent.s
record.s;
(2) hre not Included L!l contrlbuUons tor
any other ledera.!ly-s.ulsted program;
(3) Are oec........ry and r......,oable lor prop-
er and emclent s.ccompllshment 01 project.
obJectives;
(4) Me types or cbargee tbAt would be al-
lo"...ble under the appllca.ble ooet prlnclples;
(ll) Me not paid by the Pede..1 Govern-
ment under another R.ll8lstAoce agreement
(unl...s the agreement III author1zed by }"ed-
eralla'" to be ~ tor eo<<t ahLrlng or m.atcb-
Ing);
(6) Me provided tor 10 the approved budg-
et when required by the P'-ederal ~ency; and
(7) Con1orm to other pro1'1slons or thlll
attILChment.
4., Values tor reclpleot In-klnd oontrlbu-
tlons wUl be establlo.bed In o.ccordance w1th
the appllcable caet "rl.nclples,
ll, Sp<ocL'lc procodu"", lor the reclplent.s In
f";.c:;LnhlL~h1nt" thf" ~n.J\)f" of In-k:"lnct ("'(':;t.i1hll-
and
n:"'l~
I
Office of Management and Budget Circular A-110 (7/30/76)
tlons Irom non -Federal third parties lITe set
lorth below:
ft.. 'Valuation a/vOlunteer $(rJ"iccs.-Vo1un-
teer servl"es mny be lurnlshed by professional
and technlcnl personllrl, consultnnts, nnd
oth,.r skilled nnd unskilled lnbor. Volllnteer
services m"y be counted as cost shnrlng or
mll.tchlng If the sen'lee Is all Illtegral and
necessary part of ~.Il nppro\'ed prol:ram.
(I) Rat"., jar vollllltrer serviee",-Tl~~Cs for
vol \I ntccn; should he COo!-ils\cnt with t.ho!'ioC
paid lor similar work In thc recipient's
organI7.atlon. In those Installccs III which the
required skills nre not lound III the reciplellt
oq;n.nl?ntlon. rnlcs fiho\11d be consisten\. \I,:lth
~hose paid for similar work III the labor mar-
ket III whIch the reclplen~ compe~es for the
kind of sen'lces Involved,
(2) Vo/ullteers -:mployed by other organi-
zatlolls,-When an employcr other than the
recipient lurnlshes the services of "n em-
ployee, these servIces shall pc vnluecl at the
employee's regular rate of pny (cxcluslve 01
Irlnge beneftt.s and overhead costs) provIded
tI)ese services arc In the same skill for which
the cmployee Is normnlly pnld,
b, VaL1lation oj donated, eIpendable per-
sonaL property.-Donat.cd, expendnble per-
sonl\l property Includes such It.cms as ex-
pendable equipment, office supplies, labora-
tory, supplies or workshop and classroom
supplies. Value assessed to expendable per-
sonal property Included In the cost or match-
Ing' share should be reasonable and should
not exceed the market vfllue of the property
at the time 01 the donation.
c. ValUAtion oj donated, nonexpcnd<1ble
pcrsanal property, buildings, And Land or
=e thereof,
(l) The method used for chargIng cost
sharing or matching for dona~ed nonex-
pendable personal property. buildings and
land I111lY dllYer according to the purpose 01
the grant or other ngreement as follo""s:
(a) l! the purpose 01 the grant or other
agreement Is to assist the recipIent In the
acquisition of equipment. buildings or lnnd.
the tota.l value of the donat.cd property may
be claimed as cost sharIng or matching.
(b) If the purpose of the agreement Is to
support activIties that require the use of
eqUipment, buildings or land, depreciation
or use charges for equipment and buildings
may be made. The full value 01 equloment or
other capital assets ""d fall' renul chM!!es
lor ll\nd may be allowed provIded that the
Federal agency has approved the charges,
(2) The value of donated property will be
de~ermlned In I\ccordance with the usual
accounting policies of the recipIent wIth the
following qualifications:
(a) Land and buildin9s,-The value of
donated land and buildings mav not exceed
Its fair ma.rket vl\lue, at the tlm~ of donation
to the recipient as established by an Inde-
pendent appraIser (e,l;.. certified' real prop-
ert). appr...lser or GSA representatl\'es) and
certlfled by a. responsible olflclal of the
recIpient.
(b) None:::pend.able peT'soTUll prO'l'ertp,-
The \'lI.lue of donated non expendable personal
proper~y shall not exceed the laIr market
value of equipment nnd property of the same
age and condition nt the time of donation,
(c) Use oj spa.ce,-The \'nlue 01 donnted
space shall not exceed the lair rentnl \'...I\;.
of comparahle spnce M established b\' nn
Independent appraisal of compar~ble ~pace
and lacllltles In a prh'ntely-owned building
In the same locality:'
(d) Loaned eqllip711ent..-Thc \'nllle of
loaned equipment shall not exceed It.s fair
ren~n.l vnl uc.
6, The lollowlng requlrem('nts pertnln to
the reclplellt's supportlng records for In-
klnd contrlb\1t.1ons frern non.Fcu{"ral third
r:\rt.lc-""
a, Volllnteer servl('('s must be document('d
nnd, to the ex~ent feasihle, supported by the
snme methods used by the reclplellt for Its
employees,
b, The basis lor determining the vl\lualloll
for persollnl services. malerlal, eqlllpment.
buildings and land must be docllmented,
ATTACIIM!:NT F,--{;IRCUI.A" No, A-ll0
STANU^nUS Fon FINANCIAL MANAGEMENT
SYSTEMS
I. TIlls attachment prescribes standnrds Lor
ftnnnclnl lnannr,clncn\. syslclns of reclplcnl5.
Federal sponsoring agentles shall no~ Impose
nddl~ional stnndards on recipients unless spe-
clflcnlly provided lor In the I\ppllcable sta-
~utes (e,g.. the Joint Pundlng Slmpllflcatlon
Act. P,L, 93-510) or o~her attachments t.o this
circular. However, Federal spollsorlog agen-
cies arc encouraged to make suggestlons I\nd
assIst recipients In estballshlng or Improvlnl;
flnanclal llll\nl'gement systems when such 85-
slstnncl' Is needed or request.cd.
2, Reelplent.s' financial mnnngement sys-
tems shl\lI provide for:
a, Accurate. current and complete disclo-
sure of the financial result.s of ench fedcrnlly
sponsored project or program In accorclanee
with the reportlng requirements set forth In
A~t..\chment G to this circular. \Vhen a Fed-
eral sponsoring agency requires reporting on
an accrual basis, the recipient shall not be
required to estnbllsh an aecrnal accounting
system but shall develop such accrual dnta
for It.s reports on the basis oC an analysis 01
the documentation on hand.
b. Records that Identify adequlltely the
source and appllcl\tlon of funds for federall)"
sponsored activities. These records shnll con-
tain lnfonnatlon pertnlnlng to Federa)
a ",'a.rds. authorl:wtlon3, obligations. unobli-
gated balances, asset.s. outlays. and Income,
c. Effective control over and accountability
for IlI1 funds. property and other assets. Re-
cipIents shall I\dequat.cly safeg-uard all such'
assets and shall assure that they are used
solely for authorl:z.ed purposes.
d. Comparison of actullI outlnys with bud-
get amount.s for each grant or other agree-
ment. Whenever appropriate or required by
the Federal sponsoring agency.' financial In-
formation should bl' related to performance
and unit cost data.
e, Procedures to mlnlml:>e the time elapsing
bet"'een the transler of lunds from the U .5,
Treasury and the disbursement by the reclp-
Icnt. whenever funds are advnnced by the
Federal Government. Vlhen advances DTC
made b~' a letter-of-credit method, the recip-
Ient shall make drawdo",'ns as close n8 pos-
sible to t.he time 01 making disbursements.
1. Procedures for determining the reason-
ableness. allowl\blllty and allocability of costs
In accordance with the pro\'lslons of the np-
pllcable Federal cost princIples and the terms
of the grant or other agreement.
g. ACCounting records that are supported
by source documentation.
h, Examlnatlons In the form of nudlt.s or
Internal audits. Such audits shall be made
by qualified Indi\'iduals who are sulflclently
1ndependent of those who n\lth~rizc th~ ex-
penditure of Fede~nl funds. ~o produce un-
biased opinions. conclusions or Judg-ment.s,
The)' shall meet the Independence crlterln
ILlong the lines 01 Chapter 3. Part 3 of the
U,S, General Accounting Office publlcntlon,
S~andnrds Jor Audit of Government:ll OT/;nn-
17,atlons. Pro~rams. Ac~i\'ltles and Functions,
"'lICS~ cxan,lnat.ions nrc tnt-ended to a..c.;cer-
tnin the cfIccti"cncss or the f1na.nclnl man'"
ngemcnt systems ftnd internal proC'_cdnTcs'
~hat hnve been est:\bllshed to meet the tcrms
and cc>ndltlons of the agreement.s, It Is not
Intended thnt each :\greement awarded to the
Tcclp\cnt be examined. GCllcrnlly. cxnmtnn-
t.lon~ should be conducted c.n an orr.nnlzH-
tlnn-',1.'i(j'" ~r.s!~ to 1~~~ U1(' f1<;r~l 1nll"r.'ilt.\' of
-'
A-110:3
f11Hlllclnl t.rnnsn.ctlon~. fl.'" well as compliance
wllh the terms and conditions of the Feder,,}
grr.nt.s and other agreements, Such test.s
\\'ould Include an approprlRt.e sILmpllllg 01
Federal ILvreement.s, Exnmlllatlolls will be
conduc~ed with reasonabl. frequency. on a
continuing bILsls or I\t scheduled IlItervals.
usually annually, but no~ less Irequenl.ly than
every t,,'o years, TI)e Irequency of these ex-
nmlnatlons shall depend upon the nnture,
s17.(' ILnd the complexity of the act\'lIty, These
exnmlnntlons do not relieve ]"ederal ngencleS
01 their audl~ responsibilities, bu~ mny ILrrect
tile Irequency and scope of such audits,
1. A systematic method to IL55ure tlmel\' and
npproP~!nte resolution of audit findings and
recommendations.
3, Primary reclplent.s shall require subre-
clplellts (,,, defined In parILgraph 5 of the
bnslc circular) to adopt the stl\ndnrds In
parngraph 2, I\bove except for the require-
ment Insubpar"grl\ph 2e. regarding the use'
of the letter-of-credit me~hod and thnt pnrt
of ,:;ubpILragraph 2a, regnrdlng reportlnS'
forms and frequencies prescribed In Attnch-
ment, G to this clrculnr.
ATTACHMI:NT G.-CmCUI.AIL No. A-IIO
TINANCLAL RD"on'J"'IN'C REQUIREMENTS
1. This f>tU\chment prescribes untrorm re-
porting procedures lor reclplent.s to: sum-
martze expenditures made and Federnl funds
unexpended for each award, report the st.ntus
of Pederal ca.sh advanced, request ad\'l\nces
and reimbursement when the letter-ol-credlt
method Is not used: and promulgates stand-
ILl''', lorms Incident thereto.
2. The following definitions apply lor pur-
poscs of this attachment:
Il, Accrued c:::pcnditures,-Accrued ex-
penditures are the charges Incurred by the
recipient during a given perIod requiring the
provision of funds for: (1) goods and other
tangible property received: (2) services per-
formed by employees, contractors, subreclpl-
ent.s. and otber payees. and (3) other
amount.s becoming owed under programs for
It.'hlch no current scrv1ccs or performo.nce ~
req ulred.
b. Accrued inco'7le.-Accrued Income Is the
sum of (I) earnings during a given period
Irom (I) services __performed by the recipi-
ent; and (II) goods "nd other t!U)glble
property dell\'ered to purchasers: and (2)
amount.s becoming owed to the recipient for
whlc.h no current ser\'lces or perlormB.nCe Is
required by the recipient.
c, Federal jund. authorized.-Federal
lunds authorized arll- the totnl amount of
Federal funds obllgated b)' tlle Federal Go\'-
ernment for use by the recipient. Th\.!.
amount may Include any authorized carry-
over of unobligated funds from prior fiscal
yenrs when permitted by law or agency
regulntlon.
d, In-kind contribution.s,-ln-klnd COD-
trlbutlons are denned In Attnchment E to
thl$ circular,
e, Obli9ation.s,-Obllgatlons are the
amounts of orders placed, contracl.S and
grnnts awarded. ser\'lccs recel\'ed, and simi-
lar transnctlons elurlng n gIven period thnt
",'ill require pnyment by the recipient during
~he sILme or " tuture period,
1. Outloys,-Outlays or expenditures repre-
sent chnrges made ~o the project or program,
They mny be reported on n cash or R.cCTUF\l
bnsls, For reports prepared on a cash basis.
outlnys are the sum 01 ac~ua.1 cnsh dIsburse-
ment.' lor cllrect charges for goods and sen--
Ices, the II.moun~ of Indirect expcnse charged,
~he \'nluc of In-kInd contributions applied,
and thc nmount of cRsh "d\'ances and pl\)'-
menL' mnde to subreclpients, For reports pre-
pared on an accrual basis, outlnys are the
sum of I\ct\.ln.l en.sh dl.!'buTsement.s for dlrect
(;l1r\rgc~ for ~ood~ :\nd ~cr",lcc~. the nmount
('If lndlrcr~ r;o:!,f'n~(' tnr.urr("d, U)c \"nluc of In-
I
Office of Management and Budget Circular A-110 (7/30/76)
kind contributions applled, and the net In-
crea.e .lor decrease) In the amounts owed by
the recipient lor goods and other proper~y
received, lor service. perlormed b)' employ-
ees, con~ractors, subreclplents and other
payee. and other amounts becoming owed
under programs lor ,,'hlch no current serv-
Ices or perrormancc are required.
g. Pr09ram tn.come.-Program Income I.
de!lned In Attachment D or thl. circular. It
may be reported on a co.sh or accrual basis,
whichever Is used lor reporting outlays,
h. Unob/l9ated balance,-The unobllgated
bal..nce Is ~he portion of the funds author-
Ized by the Federal sponllOrlng agency tha t
has not been obligated by the recipient and Is
determined by deducting the cumulative
obligations Irom tbe cumulative lunds au-
thorized.
I. Un/lqutdated ob/l9atfonJ,-P'or reporlS
prepared on a cash' bMls, unllquld"ted obli-
gations represent the'<lrnount or obllg..tlons
Incurred by the recipient that has not been
pt\ld, For reporlS prepared on an accrued ex-
penditure basis, they represent the amount
or obligations Incurred by the recipient for
which ..n outlay hM not been recorded.
3. Only the rollowlng forms ,,'Ill be "u-
thorlzed ror obtaining financial Inlormatlon
lrom reclplen\.6,
a. Ftn.4ncial Statu. Report (Ex/dblt 1),
(1) E..eh Tederal sponsorln!; agency .h"ll
require reclplen\.6 to u..e the .tandardlzed
Fln..ncl..1 St..tw Report to report the status
01 lunds for all nonconstructlon projects or
programs. The Federal sponsorln!; agencIes
m..y, llowever, have the option 01 not re-
qulrln!; the F'ln..nclal Status Report when
the Request lor Advance or Reimbursement
(par..graph 4a) or Report 01 Federal Cash
Tra.nsa.etlons (para.gra.ph 3b) Is determined
to provIde a.dequa.te Inlorma.tlon to meet
their needs, except that anna.l F'lna.ncla.1
Status Report shall be required at the com-
pletion. of the project when the Request lor
Adva.nce or Reimbursement lorm I. used only
lor ad,'a.nces.
(2) The Federal sponsor1n!; agency shall
prescribe whether the report shall be on a
cash or a.ccrual basis, It the Federal sponsor-
In!; agency requires accrual Information and
the recipient'. accountln!; records are not
norma.lIy kept on the accrua.l basis, the re-
cipIent shall not be required to convert Its
a.ccountlng system, but shall develop such
a.ccru..l Inrormatlon through best estImates
ba.sed on an analysis 01 the cocumentatlon
on h..ne!.
(3) The Federal sponsoring agency shall
determine the rrequency, of the F'lnanclal
Status Report lor each project or program
considering the size and complexlt)' or the
pa.rtlcular project or progra.m. However, the
report sha.ll not be required more lrequentlY
tha.n qua.rterly or less lrequently tha.n an'-
nua.lI)' except ..., provided In subpl\ragrnph
3a. (I) a.bove, A nna.l report shall be required
at the completIon of the agreement.
(4) Federal sponsorIng agencies shl\Jl re-
quire recipients to submit the Financial
StlltU' Report \orlglnal and no more th..n
two c0ples) no later thnn 30 days aHer the
end or each specified repor~lng period ror
qUI\T~erly and seml-a.nnual reports, I\nd 90
dill'S ror annual and final reports. Extensions
to reporting due dates may be granted upon
request or the recipient,
b, Report 01 Federal Ca..h Tran.actions
(Exhibit 2).
(I) When funds ..re advlLnced to
reclplenlJ! through letters 01 credit or wIth
Treasury checks, the Feder..l sponsoring
..sencles shall require each recipient to sub-
mit a Rep:>rt or Federl\l Cash Tran""-Ctlons,
The Federal sponsorIng I\bency .hl\ll use thl.
report to monitor cash ndvanced to recipients
I\nd to obtain disbursement 'Inrorm..~lon ror
ea.ch a!;reement Irom the reclplenlJl,
(2) Federal sponsoring ..gencles may re-
quire loreca.sts 01 Federal cash requirements
In the "Remarks" section 01 the report,
(3) When practlcl\l ..nd deemed necessnr~',
the Federal sponsorIng ..gencles may require
receipts to report In the "Rem..rks" section
the f\mount or CAsh advances ,In excess or
three <11\)'" requirements In the hl\nds or sub-
recipients and to provide short n..rr..tlve ex-
pl..nar,lons or ..ctlons taken by the recipients
to reduce the excess bal..nces.
(4) Recipient. shall be required to submIt
not m:Jre th..n the orlglnal ..nd two copies 01
the Report or Federl\J Cash Trans..ctlons 15
working <lays loll owing the end 01 e..ch
quarter. The Feder..1 sponsoring agencies
m..y require a monthl}' report rrom those
recipients recelvlng ..dv..n.:es tot..lIng $1
million or more per yeu.
(5) Feder..1 sponsoring agencies m..r w..lve
the requirement lor subml!.Slon or the Report
01 Federal Cash Tr..ns..ctlons when monthly
adv..nces 10 not exceed $10,000 per recipient,
provided that such ..dvance3 are monl tored
through other lorms contained In_~hl. at-
t1chment, or If. In the Feder..1 sponsor1ng
abency's opinion, the recipient's accounting
controls are adequ..te to minimize excessl\'e
Federal advances,
04.. Except ..s noud below, only the rollow-
Ing forms will be authorized lor the recipi-
ent! In requesting ..dvances and. relmbur5e-
ments.
.., Request lor Advance or Rdmbursemcnt
(Ez/dbtt 3).
(I) E..ch Federal spon!orlng ..gency sh..ll
..dopt the Request ror Advance or Reimburse-
ment as .. standr.rdlzed lorm for all noncon-
!tructlon progr..ms when letters-ol-credlt or
predetermIned ..dvance methods are not used..
Feder..l sponsoring a.gencles, however, h..\'e
the option 01 using this lorm ror construc-
tion programs In lieu 01 the Outlay Report
..nd Request ror Relmburseme:lt lor Con-
struction Programs (subp..ragr..ph 4h).
(2) Recipients sh..ll be authorized to sub-
mIt requests lor advances and reimburse-
ments at le..st monthly when lelters-or-
credit Me not used. Federal spensorlng
agencies sh..lI not require the subml.slon 01
more th..n the orll\lnl\l and t""o caples 01 the
Request lor Adv&nce or Reimbursement.
.I
A.110:4
b, Outlay report and Tequest lOT Teim-
bur..ment lor construction programs (Ex-
hibit 4),
(I) Eneh Federal r.ponwrln(: I\(:ency shl\ll
adc-pt the Outll\Y Report and Req\les~ lor He-
Imbursement ror Construction progrnms as
the st3-ndardlz,ed rorml\t to be \lsed ror re-
questing reimbursement ror construction
program., The Federl\J sponsorlr:g I\~encles
ma)', however, have the option 01 substitut-
Ing the Request ror Advance or Helm burse-
ment Form (subpar..gr..ph 4a) when the
Federal agencies determine th..t It provides
f\rlequf\te Inlorrn/\tlon to meet their needs.
(2) Recipients sh..1I be au~horlzed to sub-
mIt requests lor reimbursement I\t leMt
monthly when le~ters-ol-credlt "re not used.
Federl\l sponsorln!; agencies sha.1I not require
more th..n the original and two copies or the
Outll\)' Report and Request lor Reimburse-
ment lor Construction ProgTarD5,
5, When the Federal sponsoring agencies
need nddltlonl\l Inlorm..tlon In using ~hese
lorms or more rrequent reports, the lollowlng
sh..1I be observed:
..., When addl~lonl\l Inrorm..tlon ls needed
to comply with leglslnllve requirements,
Federal sponsorln!; ngencles sh..1I Issue In-
:<truetlons to require recipients to s\lbmlt
s\lch Intorma.tlon under the "Remarks" sec-
tion of the report.~,
b. When necess..ry to meet specific pro-
gum needs Feder..l sponsoring agencies sh..ll
submit the proposed reporting requirements
to the Financial MAn..gement Br..nch, Budget
Review Division, Omce or Managemen~ and
Bu~et lor approval prior to submission of
the reporu for clearance und.er the pro-
visIons 01 OMB Clrcul..r No, A-40,
c. When a Feder..l sponsoring agency hl\s
determined that.. recipient's accounting sys-
tem does not meet the St&ndnrds lor FI-
nl\nclsl M..nagement contained In Att..ch-
ment F to this clrcul..r. addltlon..l pertinent
Intorm..tlon to lurther monitor grants ..nd
other "breements may be obt..lned upon
wrItten notice to the recipient untll such
time as the system Is brought up to st..ndard,
d, The Federal sponsoring a.gency. In ob-
taining Inlorm..tlon B.S In par..graphs a, b
..nd c above, mu:,' comply with report clear-
..nee requirements 01 the Omce 01 Ma.nage-
ment and Budget Circular No, A-40, as re-
vised,
6, Federal sponsorln!; ..gencles h..ve the
optIon 01 sh..dln!; out any line Item on any
report thnt Is unnecessary lor declslon-m..k-
Ing purposes,
7: Feder..l sponsor In!; ..gencle~ should ac-
cept the Identlc..l Informat-"n 1rorr. the re-
cipients In m..chlne usable lorm..t ;j,. com-
p\lter prlntouts In lieu or prescribed lormats,
8, Federal sponsorIng agencies may p,ro-
vide compu~er outputs ~o recipients ""hen It
will expedite or contribute to the ..ccuracy
01 reporting,
9, Federal sponsoring agencies are nuthor-
17,ed to reproduce these lorms, The forms lor
reproduction purposes cnn be obtaIned lrom
~he omce or M..n3.bement ..nd. Budget.
STATUS REPORT I. Ho(.AL A"HCY AHo OIl<UH,u.nOHAL (L..<un TO WHICH ..""",. .. .u....mo r "o"~L .......-r O. OT><,O '''''HTlrtlHQ \ OMB Approvod \ ,AG, 0'
FINANCIAL HV....[~ No. :)o--R0180 I
(FoU"w ;n.lrucrimu 0" t1u bock) ,..<;(S
R[Clr1[tH OR<JAHlLAnON ,1-.".... eM ~~~.,f ..iA~.... i..c1..A;..~ zlr tel..) .. (J,(rlOTl~ I(){Hn'ICATlOH HUWUIl: I'" ftIC'''tHT Acecum HUW.IIl: all: IOtl'tTlnl1+a Huwn" L ""Al 1Il[1"'O"" \7, .''!It
o H' e HO o CASH n _CCFlUAl
., ,ItOJCCT /0""'H1 ","00 1-'" i...'.......'''-.I .. ""100 COVI".IUD If Tl4lS IUI"'OR"T
,,.OM INo..(t,. d.oJv. ..-p. I TO IJlo..t"'. h,. ....8P) '11I0'-4 l"'..'-'.,c... ,._r) TO 1,'1(_,., of".. ,.f.r'
STATUS or r\1HDS -
,- -
(a) (b) (e) (dJ (.J (f) TOTAL
PROGRAM S I rUNCT IONS I ACTIVIT IES ~ (9)
Het OUtllllY' previously r!portt'<! $ $ $ $ $ $ $
To13! outlRY' this Il!Iport period
Lt/u: rrOR'ltm Income Crndltl
Nt't outlllY' Ihlt roport period
(tj1f., It min"J lint') I
tlet OUtlAY' to dall I
(Lin" d plU1 lint d) , .
-, : I
to',' Non'''~f!rllll sho\re of OUtlllYI
--
TotAl F&dfHflI "'Hue or oullaY1
(tin'! e minu. fin' f) I
I I
TotAl unll~uld3t~d obligation1
--
Lo.: fron.redlHII ,ha" of vnll~uldat8d
obll1l8tlont ,hown on IIn, h
F'~",al shIHe of unllquldltrwi obllRstionl "
Total fl!de,..1 ,hIH! of outlays IInd
unliquidated obliAlltlons
Tot!! euO\ul~liya amount of F8de,.1 fundt
authorlud
Unobllgat&<t bell,nee of redf'rll fundi or AUTHORIZED CERTlrrlNG DATE REPORT
I"ROVISlOUAl! 0 ,n[D[it"UIIU.D U. ClR1"IF1CATlOH SIGNATURE SUBMITTEO
I. TYPE. 0" "AT( OffiCIAL
(Pln.u "X" in tJpp-ropntJft bo%) 0 o ""AL 0""0 I c.rtlly to tho boo.l 01 my knowtod;. .nd ~,
O'"[CT Ie. D-'5[ \ d. TOTAl AMOUNT \1, nQ[RAl IHMU lief thlt this report" eO"ftct Ind complM8 Ind
"'HUl b. Fl:-'TE thllt III OUUIY' .nd unllQuldllt~ oblll(lrtlonl TY~O OR PRINTEO IIAI-IE ANO TITLE TELEPHONE (A.r,~ eO'l.,
. In for the purposes n1: forth In thl I""""rd numbllr' and ntll'\8'\"")
:::':..~::~r:~:::t~~~" ~,.,.,_t"'~ fl......,,' .._.._., ~ i..t_.....t"'. r."..i,.J. &, T...t.....l ,::-,_,.(0., ...~, i. -pi....." ~A dOCumflnlJ.
lTA"DAIIO 'O~" 1M (7_751
1-101
EXHIBIT I
'u.c,lbaod by omc. cf ... .".I.~."t Ind Budl.t
CIRCULAR HO, A.110
-'
0
.....
.....
0
en
0
.....
;;::
tIl
:l
tIl
lD
en
3
en
:l
-
tIl
:l
0.
m -
c
0.
lD
en
-
0
-.
0
C
tIl
-.
~
I
-'"
-'"
0
-
~
......
W
0
......
~
m
-
--,
~
I
-'"
-'"
o
01
I
J
Office of Management and Budget Circular A.110 (7/30/76)
INSTRUCTIONS
Ple~se type or prinlleEibly, lIems 1,2,3,6.7,9. IOd, lOe, 109, 10i. 101, ll~. ~nd 12 are self,explanatory,
specific instructions for other ilems are as lollows:
1....... Eft ''1'
" [n'.' the .mr1oyer khntlOc.atlon number eulfne-d by
the U.S. Internal Rt'Vrnuf. Service or nCE (in~ituhon)
code. If reqUired by the FtK1ef.1 ,pontoOu"g alencr.
5 Thl, !IPf1ce I. reMrvfl(l' for en account number or athr,
identityl"&: numbers that may tM ,uianl'd by the:
recipient.
8 Enter the month. day. Bnd yee, of the beJl'innln, end
endln, of thIS prolect penod. for formula ,renu thet
.rc not IW'IIrded on II prOtect balls, shOw the gUlnt
porio<l.
10 The PUf'tl(K.4l of vertical column. (a) throulfh Cf) Is to
provide flnanci.1 data .or tach program, tunctlon, Ind
IIcttvity in the budle1 as approved by 'he feder-al 'PO".
sarin, IIleney. If additional columns Irt: nerdt'd. use as
mooy .ddltlonal tarms as nH'ded end Indlc.ate pelle
number In 'p6C~ provided In upper right: however. the
totels at ell proS"'.ml, functions or activities ,hould be
Ihown in column (g) of the first pare. for a,reements
~rtelnlnE to Rvuel CeUloE of Federal Oomntlc:
^ssistance prorrems that do n(\1 rt!'Quln I further
functional or activity classification breakdown. enter
under columns (.) IhroUSh (r) the tillt of the program.
For ,nrnu or other aa.sisunce ."r..ments containing
muttlple programs where ant or more prOf/rems reQulrt
II further breakdown by function or Ilctlvfty. use I
s.eparale form for eaCh proE'r"8m showtnE the applicable
functions or aC'tivltiK In the ,eparat. column~. For
IZmnU or olher .ssistence agreements containinl;" se....
eral functions or ac'ivlties which ere funoed from
Ml'W:rDl progrems, prep.llre I '5ep.r&1e form tor each
.ctlv1ty or function when requested by the Fed-en:
s.ponsoring .gency.
lOa Enter the nat OUtlll)'. This .mount should be the same
el tntl emount reponed In Une 10. at the lest report.
If there has been an adjustment to t"e amount ~hown
pl"8Y~usty. pi use anach explanation. Show zero It this
tc the Inttlal repon. .
lOb Enter the tole I I't'08S program oullays (less rebatei.
retunds. Ind other discounts) for this report ~rt()(!,
Including dlsbunemenh of cash realited IS program
income. for reports that lire prepare-d on I cash
ba!i~, outl.~ are the sum of actual cash disburse.
mu,:ts tor Roods and urvices, the amount of Indireo:1
expense charaed. the valuf' of In. kind contributions
applied, and the amount of cesh advencts and
payments made to contractor, end subgren'u s. For
reports prcpal"e'd on en accrued expenditure ba,i,. out.
I.~ arc the sum o! actual cash disburnmenh, the
amount of Indlrrct expense incurred. the value of in.
kind contributions aoolle<:. and the net increase (or
(tKrUM) in the amounts o~ by the re-cipient lor
goods and other property received and for leMCtS
per1orme<: by employees. contf"llctors. .ubgrlntee~. line::
ather p.ayen,
1....... Eftt'1'
J Dc [n,.r the .moLlnt of .11 prORra'" Income reallze<1 In
this penocl thllt is rt'quir~ toy the t~rms end con.
dillon, 01 Ihr f edual .~rd to bf' Of"ducted from 'olal
p",If'Ct costs. for "pons prtf\lHed on . cash b-olsls,
enlpr the amount of cuh incerne r..crived durinl{ thl
reportinE CW'riod. For reports prepare<! on en eccruel
bas.IS. enlrr thl .mOLlnl, 01 Income rernPd since the
~,innin, of the repartin[ period. ~'tn the terms or
conditions alia..... prORram Incomr to be edded to the
tOl81 Itwud. .JCplain In remarks, thr sourer, amount
and disDOsilion of the Income.
lOt [nte'r amOLlnt pertelnl"1I '0 the non.F't<lerel shere of
prOlram outleY' lncluded In the amount .~..n line t.
10h Enter tOlal amount of unliqUldatf'(j obtiglltlon! tor thl,
project or proFrem, includinE unliQulollted obIiB2ltjOn5
to s.ubil'rantees .nd contracton. UnliQuideted oblilla.
tions Ire:
Cash buls.-obltralions Incurred but not ,paid:
Accrued u.~nditure bnis.--oblillalions IncurM bl1t
tor which. an outlay hes not been recorded.
00 not include any amounts thai hllve be-en Included
on linn e Ihrc,Ufh ,. On the final report. line h should
havCl II 1.ro balance.
10J En'er the Federal share of unliQuld8tf'(j obligallons.
show-n on line h. The amount ~hown on this line should
~ the dinerence between the amounts on lines h end l.
10k Enter the sum of the Ilmounts shown on line-s E and J.
It th. "pon Is final the report should no' conhi" eny
unliquidated obligat'ons.
10m Enter th" unobUgattod balance of Federal fund,. This
amount should be the: dlf'lerence between lints k end I.
11 b Enter rate In enect during the reporting pulod.
llc Enter amount of the bas.e to which the rate was applied.
I1d Enter totel! amounl of indirect cost eharg.d during tht
repan peno(L
11e [.nler emount of the federal ,hare c:harst-d during the
report ptrlod.
If mo", than one ralf was applied during 'he project
perLod.. include a separate seheOule showing bases
against wl'\lel'\ lhe IndlreCI cost rates were epplied. the
re$pectivt Indirect ratt'S the month. ea)', and year Ihe
i"di~ ratn were In f'f1t'Ct, amounts of indirect u.
peonst cher~ed to the project. and the Federal share of
indirect expense cheraed to the project '0 de't.
A-110:6
..
...
I
.I
Office of Management and Budget Circular A-110 (7/30/76)
A-110:7
Approved by Office of ""hn._~ment and Bud,.t. No. SO-ROl82
FEDERAL CASH TRANSACTIONS REPORT 1- ~tld~,.1 ~sorinI .'1"n'CJ ."d o"u,iutiot\ll .1.",,"\ to wtli(~ ltli, "port
II ....bm'n.ci
(See in.~tructi(>n~ 071 tll" bcu:k, If report i., fM more than onc prant or
assistance agreement. ntt.acll completed Stnnd-ard Form !7~-A.)
Z. RECIPIENT ORGANIZATION .. f.o....1 rDnl 01 CIlth. ide.ntifiCf' S. ~Kipi.nl'. KC'O\J"t '",'mber ...
UOft f'lumber i6.fttityil'l' Plumt..r
Namr : 6- l.U.,. .f uedit "",fIIINt' 7. llt1 pey,..nt 't'O~h.r "w"",beor
N".",h".,. Give t<,tal number for this period
OM Str.et :
B. hymtn' Vouch." crediltod I. 9. hMSUry chee'" ,..uiwtd (\L'Mthrr
)'OU, .c:cou" t err t\.Ot dero'lltd)
Citl!. StGte 10. " PERIOD COVERED BY THIS REPORT
and ZIP Code:
3, FEDERAL EMPLOYER ~ FROM (,"o"th. "V. ~flllU') TO (MO"t"-. cloy )'tor)
IDENTIFICATION NO.
a. Cash on hand beginning of reporting period $
..,
b. Letter of credit withdrawals .
c. Treasury check payments
11. STATUS OF
FEDERAL d. Total receipts (Sum 0/ lines b and c)
CASH e, Total cash available (Sum 0/ lines aJl-nd d)
f. Gross disbursements
(See 8pecific g, Federal share of program income
instructions
on the back) h. Net disbursements (Line / minus line 0)
i. Adjustments of prior periods
j, Cash on hand end of period $
12, THE AV10UNT SHOWN 13. OTHER INFORMATION
ON LINE I1J. ABOVE.
REPRESENTS CASH RE. a, Interest income $
QUIREMENTS FOR THE
ENSUING
DaV8 b, Advances to subgrantees or subcontractors $
~ .
14. REMARKS (A ttacll addit40nal sheets of plain paper, if mMe space is required)
15.
CERTI FICA TlON
SIGNA TURE
I certify to the best of my
knowledge and belief that AUTHORIZED
this report is true in all reo
spects and that all disburse' CERTIFYING
ments have been made for
the purpose and conditions j OFFICIAL
of the grant or agreement
THIS SPACE FOR AGENCY USE
TYPED OR,PRINTED NAME AND TITLE
(Ar.. Cod.)
TELEPHONE
272-101
EXHIBIT 2
(Nwmb..r)
DATE REPORT SUB~ITTED
(E%t.~ic" )
STANO....RO rORM 272 (7-76)
Pr."-Cribfl'<.1 by OtflCfII nf ~.hnl"l&~m.nl lInd AudQ'.t
I
-,
J
Office of Management and Budget Circular A-110 (7/30/76)
A-110:8
INSTRUCTIONS
PI"e~. type Of print legibly. Items I, 2, 8, 9, 10, lId, lIe, 11h, and 15 are self explllnlltory, specific
Instructions for other items are as follows:
1'-'
Entry
3
Enter employer ioentific:ation number Ilulgned by the
U,S. Internll! Reve-nue Servic:e or the fleE (institution)
code.
If this report covers more then one lIrent or other
agreement, lellve Items 4 and 5 blllnk Ilnd provide the
informlltlon on Standard Form 272-A, Report of Fed.
erel Cash Trensactiol\l,---Contirwed; othelWi~;
4 Enter FlKleral grent number, egreement number, or
other Identifying numbers if requested by aponsoring
agil ncy.
5 Th;s spllce r~rved for In Ilc:count number or other
Identifying number thllt may be es~illned by the re-
cipient.
6 Enter the letter of credit numbef' thllt epplles to this
report. If ell advances were mede by Trellsury check.
enter "NA" for not appli~ble and leave items 7 and 8
b18nk.
7 Enter the voucher number of the last letter-of-credit
peyment vovcher (Form TUS 5401) thet was credited
to your Ilccount.
11a Enter the total Ilmount of Federer cash on hand at the
beginning of the reporting period Including all of the
Federal funds on deposit, Imprut funds, and und~
po$ited Treasury checks.
lIb Enter total amount of Federal funds re<:ilived through
~yment vovchen (Form TUS 5401) that were cred'
ited to your accOunt during the reporti-ng period,
11c: EMff the total Ilmount of ell Feder&! funds received
during the report)!\( ~riod through Treasury checks.
wheth6; Of not d~ted.
Ilt E.rt:er the ~1I1 Fedo&ntl c.nh ctllbursements. mac!e
~rinp; tn. ~ period, kl<:ludlng cllsh received
M ~m !ncom<<. Disbursements as us.ed here Illso
loclude the amol.ln{ of advanc:~ and ~yments less
refunds to subirantMs or contractors, the gross
amount 0{ direct salJlri~ and ~K, includini the
Eft If")'
Item
emplopee's shllre or benefits If trellted 8S a direct cost,
interdepartment/ll c:harges for supplies and services,
end the amount to which the recipient is entitled for
Indirect costs.
11i Enter the Fed.rlll shere or progrllm income that was
required to be used on the project or program by the
terms of the grant or egr~n:.;nt.
111
Enter the Ilmount of 811 adjustments pertllinlng to prior
periods Ilffecting the ending balllnce that hllve not
been include<:! in any lines ebovl!. Identify each grant or
agrHrnent for which Ild)ustment was made, and enter
an explanation for BIlCh 8dJustment under "Remarks."
Use plllln sheets of ~per If.lldditional s~ce is required,
lli
Enter the total emount of Federal cash on hllnd et the
end or the reporting period. This emount should include
all funds on deposit. imprest funds, and undepos.ited
funds (line e, less line h, plus or minus line I),
12
Enter the estimated number of days until the cesh on
hand. shown on line 11), will be expended. If more than
three days cash reqirements are on hand, provide an
explanation under "Remarks" es to why the drawdown
W8S made premllturely, or other reasons for the excess
cash. The requirement for the explanation does not
apply to presc;:heduled or automatic: advances.
13a
Enter the emount of Interest earned on advances of
Fe6erel klnds but not remitted to the Federal agency.
If this Includes eny amount earned end not remitted to
the Federal sponsorin( agency for over 60 days, explein
under "Remarks." Do not report Interest earned em
lldvances to Stat~.
13b
Enter amount of advence to secondary recipients in-
cluded in item 11 h. ..
..
14
In addition to providing explenatlons as required ebove,
,iw additionlll explanetion deemed necessary by the
recipient and for in-~tion required by the F.derel
sponsoring egency in complillnce with governing legis.
Iation, Use plein sh_1s of paper if additional space is
required.
~
I
J
..,
Office of Management and Budget Circular A-110 (7/30/76)
A-110:9
FEDERAL CASH TRANSACTIONS REPORT
CONTINUATION
I Th':' tOT"" .:. <c>mpl.hd on.d oll.o<htd 10 Slon.di1rd Ff"f'T'l HI ""Iv IOh.n
rt'l'o..-tin" TJ\b1't thon ()'TLI pr41\l ('Jr' (l~8i..ctn:n.t'( a.prum.lnt.)
2. RECIPIENT ORGANIZATION (Gi,.. no",," onlVa-. .hown in il.m t, SF
t71)
Approved by Office of MBna~ement enc 8udo.l. No.
BO_RDl e2
--r:-FEOERAL SPONSORING AGENCY ~ND ORGANIZA.
lIONAL ELEMENT TO WHICH TH16 RlPORT IS SUB,
MIT1ED
3, PERIOD COVEREL> BY THIS R(f>oRT (A.. .hou.n on SF
nt)
FROM (~o""h. ...... ..-..)
TO (H_II\. &0.. .,.or1
4. LISt information below lor each grent or other agreement covered by thiS report_ Us.e addlllonellorms if more space IS reQuired.
fEDERAL GRANT DR OTHER IllENTlfl RECIPIENT ACCOUNT NUIro'BER I fEDERAL SIiARE OF NET DISBURSEMENTS
CA liON OR O1H[A
IOEHTlF"tING NUIrroIB{A N('l DISBURSEMENTS Ie....' CUMULATIVE.
r3how Cl ,,,bdivisiDYl bu other idCTIti.. ...tl"........,,,,. &".. r""pna... ,- HC1 DISBURSEMENTS
Iyinp num.brr" if -equ.ired bv lh. e,"",,' .,.,.......,1 FOR REF'ORltNC
f ,,,...01 S""""...,ngA.D.ncv) PlRtOO
(ol Ibl Ie) Id)
$ $
,
.
-
\ .
.. "
"
I
5. TO! ALS (Shhuld COTT..ptmJ! ".ilh """,,unto .hown on SF ~7t "" I
/ OhOlll': cO~\l.mn (" tht <<o.T1'U (2..$ lint J J h; eoJu:m.n (d) the ,um oJ I inc. s
11h (I"d J II, tlf Ihls.sF %71 and cum.ulative disbu,.lIemmt." IlnoW'n on I
to...d rcpO'f"t. A t10cil ,,:pLa.nat\.on. of anv diD ~ren.t:r~.) $ $
211-201
STANDARD FORM 272-1-. 17,76)
Pr..nli-.t' l,v Olli.... tol Mo"o"..f'T'....., IT'd B..d~..,
Office of Management and BUdgf
\cular A-110 (7/30/76)
.I
REOUEST FOR ADVANCE
OR REIMBURSEMENT
CSu tutrwctiCJtY 01' k.ek)
~AL SPONSORING AGE....Cy AND CANI 'IONAl ElEW(NT TO
WHICH THIS RU'OIH IS $U.wlnEO
L U,PlOY[R IOOlTlflCAnOH
HUN'Ut
7. REClPI[Hrs ACCOUNT "'U...8[R
OR IOl.HlIF'YING HUMBER
I. R[C'PiEHl ORGANIZATION
".-
,,-...
~..u<<
c..... 8....
.~ ur C.... :
Approved by Ollice 01 Mlnl..m.nt Ind
Bud..t, No. BO-ROl83
"ACE
o.
e... ........ hlA .....
''-'0(1
2. BASIS Of REQUEST
o CASH
1.
ty,..r 0'
PAYMUH
REQUUTEO
o ADVANCE 0 :~:TBUrtSE.
b. "Z" tAoI .~~...
o ,ARTlAl 0 ACCRUAL
;.. 'ARTIAl. .PAVMENT REOU~
HUMBE.R 'OR THIS REQUEI'
o FINAL
4. 'EDERAL GRANT OR OTHER
IDENTIFYING HUMBER ASSIGNED
8Y nOlRAl AGENCY
a. PERIOO COVEREO BY THIS REQUEST
rROM t_., .... ....d TO t-u... "-... .-.-l
10. "AYE 1"'''-.'.t.-4 ill &."._C.. .'~_t to\.- u-')
"'.....
,,_...
~31"_
C.....$Wi..
'.01 .,1' ~Odo :
11. COMI'\1TATION or AMOUNT ~ REIMBURSEMEHn/ADYANCES REQUESTED ..'
(.) (b) (f)
, ,
PROGAAMS/FUNCTIONS/ACTIVITIES ~ TOTAl
I. Tolol pror""' (A. ./ MI,)
_1.,-. to dltl $ $ $ $
b. lAN: Cumulative nmG'rem Incom.
c. ~ rr""' outleY" (Utw . ",v....
,
d. E.nImeted net ca.h ovtl.~ fof advance
period
0, T_I (Swm.f /Wo....t d)
f. Hon.federel.-he,.. of amount on Hne.
R. Fide,... ,I'M,.. of amount on line .
h. F edentj peymeftta previo".ty requKted .
I. =11i~o~ ""'" requ..led (LA... g
j. _"CM r-equired by hi monlh
mon1 h, _n .--..ted
by f_,,1 erontOf Igooey
'or u... in m. kin, pn.. 2nd month
IC.Mdwled advanc.
3rd month
12.
AlTUlHAn COMI'\1TATlON FOR AOVANCES ONLY
$
8. Utimeted federal cash outlays thet will be made dun", period covered by the actv8nc9
b. /.,u.: Estimated balance 01 f ed.ra' c.a.h on hand .s of beQ'inning of advance period
t. Amount reque.ted (U'W a. m.Inau li"IW b)
11.
s
CUff IFlCA'I'ION
SICNA T\lR[ Of" AU'THO"IZ[O CDtTlf'YINQ O,,,CIAl
DA T( REQUEST
SUBN,nE.O
I fOrtify Iho1 '" tho booM 01 my ....ooo1ed,.
and beli,' tile data abow 8re COI'recl .nd
IMI all outlaY" were made in acc:onlencr TY~O OR. "'IHT[D HA.M[ AND T1TLl
wtth the .nII"' condition. OC' oth<< ..,....
".eM and th.t payment is. due end hll not
-.. previously requee1ed.
TD..E II""HON [
TlMs opKe fo< ....-r ....
'_101 EXHIBIT 3
Federal Grants Management Handbook September 1978
A_ Co4A
H_.~
.....,..,w.
ITAI4o.um PORM no 0_161
""'K"'bed b7 orn~ 0( M."....".,.nt .nd a,,-..
CIRCuLA.R NO. A.1l0
A-110:10
'\
..
Appendix I
I '"O'f~,
, 1
','
.I
Office of Management and Budget Circular A-110 (7/30/76)
A-110:11
INSTRUCTIONS
Please type or print legibly, Hems 1. 3. 5. 9. 10, II c, II e, I If. II g. II i, 12 and 13 are self,explanatory;
specific instructions for other items are as tollows:
It~ E:nlf")t'
2 Indicate whether reQuest is prepared on cash or ae.
cruPd u.pendlture buis.. All requesU ior .d~ances
Ih811 be prepared on II CIsh balls.
Enter the Fedefll gfllnt number. or other identifying
number es.signed by the 'federal .pon~orinE eFeney. If
the .avance or reimbun.ement is lor more then O"t
grant or other .'fe-emenl. Insert N/1\.; then, show the
agB,ell.te amounts. On I s.eperete sheet. list ..eh
B,ent Of .greement number and the Federat share of
outlays made .gains1 the I,.nt or .greoemenl.
6 Enler th. employer identilicahon number anitned by
the U.S. Internal Rf'Yenue Servtce, or the FICE (institu-
hon) code if requt""rted by the Federal Bgeney.
This ~p"c' is. ranrved tor an account number or other
kSentityint number that may M auigneod by thl
recipient.
8 Enter the month. day. and yeer for the beE'innins end
ending 01 the pe-nod covered in this request. If the ,....
quest is tor an advence or for both an advance and n.
Imburs.emenl, JhOW the period that the advance will
cover. It the nQunt Is for r..mbunemenl, $hO,,", the
period tor which the rfimbursement is requested.
Note: The Fed,,.., s.ponsoring alenci.s hew the option of
requiring F'e'Ctpie-nh to complete Items 11 or 12. but not
both. .tem 12 should be uled when only e minimum
.mount of into\"1Tl8tion is needed to make en advance
.nd outley intormahon conuined In Item 11 can be
obtliin.d In a timely menner trom other reportl.
11 Th. purpose of the vM1icel columna (a). (b). and (c). is
to provide spece tor sepe,.te cost breakdowns when a
rrojeCl has been plennKS and bwd@eted by prOl...m.
function, or actiVity. II additional columns are neede<l:,
Ilrm Eflt"l'
use i!IS men)' addition, I torms as nH'ded and jndicate
pale numMf in space pf'O'ro'ided in upper rigtlt I'\cwrt.
ever, the summery tot.1s of .11 proRrams, functions.
()f'" ac1'\I'ities should be ,hown in the "lola'" column on
th~ t.rst pag~.
1111 Enter in "u 01 dllte", 'he month, day, and year of the
~nd.ng of the accounting period to whirt'l this amount
.pplju. Enter program outlays to datI' f I'et of refunds,
rebaln. .nd dIscounts), in the appropnate columns.
For requMts prepared on a ush basis, outlays ere the
.um 01 .ctual ush di,bu~mf'nU fOf' looch and $.eN.
icn. the amount of indirKt upenses Chllrted, Ihe
v.lue 01 in.kind tonlributiOf:'.1o applie-d, and the amount
of C""h advances and p.ayments mlld~ to subcontrac.
tors IInd subr~ipipnh. For ~uests pr&pered on an
IIccrued eJ(pendilure basis. outlays ue the sum of th~
actual cash d.sbun.emfJnts, ttlP. amoont of indireoct u.
peonses iMurred. and the net Incrtau (or dKrease) In
the amounts owed by th. reci~ent for Roods end othe-r
pro~rty rece.ved end 10f' service-s pt!'rtormed by em.
p4oyees. cont....cn. 5ubgrantees and other paYHS.
11 b [nl" the cumulative cash income recel\'ed to date, H
reouf"IlS ar. ptepar&d on '" cash basjs. For requ"",s
~p.ar.o on an accf'\HOCS expendtturt basis, enter the
cumulative incom. earned to date. Under .tth..r basil,
enter only the amount applicable to pfOiTllm income
that W'a'I 'Mluired to be- UI-ed tor the pro;K1 or p~
Iram by the terms ot the grBnt or other .gr~ment.
lid Only when milking re>Qunts tor edvence p.aym..nts,
_nlet th. totel estimated amount 01 c.es.h outlays: lhat
will be- mad.. during lhe period covered by the advanee.
13 Complete the certifle.lion ~tort wbmit1.ing this:
request.
..
'I
I
.1
Office of Management and Budget Circular A-110 (7/30/76)
Appt1)ved by Office of Mana,ement end .....CE or
OUTLA Y REPORT AND REQUEST FOR REIMBURSE. Budget, No, BC>-ROIBI 'AGES
MENT FOR CONSTRUCTION PROGRAMS 1. TYf'( 0' "[QU(ST 1. ""SIS or REQvrSl
(Su tn.IIlnu(,(J7LI eft bC1dc) 0 fiNAL o ,..VtlIAl o CASH o ACCRUAL
). HO[RAl SPQN$OAINO AG(NCY AMO ORClANllATIOHA.L (L["'[N'T TO 4. HO[RAl GRAHl Oill OTH[R S. ',A.JUIAL. P'AY"'(Hl IUQU[ST HO.
WHICH 1HIS R[PORt IS SV....lnED 10[HTI""'I"0 HUWelR. ASSIGN[O
BY rLO[AAL ACENC'
L ~~:'~OEYRU~, IDU~T1nCAlION /T. .[C'.'[HT ACCOUHT O. OTH(. "1100 f:Olf'Dl'Ol I't ntt1 II(I'OI"'r
IO(NnnINO HUJoCIIVt
fltO.. Ui'-aA.. ~,. .-.1 I TO (AI........ '-'1-. .-.1
I. RECIPI[NT ORQAHIZATlOH IQ. rAYU . "'.ar...r. __.......w.... -.II f/ 44I....J u.- "--'J
N_ : H_ ,
/;/.. ..J 1/.......
., .... , ...... ,
Cu.. CU..
$...... ...4 ........ ea4
~I" Ccod.: ZIP Cod..-
II, STATUS OF f1JN05
PROGRAMS-rUNCTlON~CTlVITl[S
CLASSIFICATION (0) (b) (c) TOTAl.
,,"
t. Admlnlstrlllrwe ~xpenu 1$ $ $ . $
b. Prellmlnllry expenu
c. Lend, structures, right-of-way
~. A.rchltK'tunll engine-ennl besle fMrl I
'. Other erchltKtural engtne-erlns fe-es
f. Project Inspection fen
(, Land development I
h. ReloceUon expense I
i. Relocation payments to Individuals end I
businesses-
J. Oemoll1lon and removal
k. Construction end projKt Improvement I
cost
I. E.auipment
m. Miscellaneous- cost
n. Totll cumUlative to date (sum oi'lin~
. thru m)
o. Deductions tor program income
p. Net cumulative to date (Line n minus
line 0) .
c;. Federsl share to date
r. Rehabilitation grants (1000/. ,eim.
buf)ement)
s. Total Federal share ($um of lines ~
end r)
t. Federal payments prf'viously ~'I
Quested
u. Amount reQuesled for reimbursement I $
v. Percentage of phys ic.a I complc1ion of I
project
12. CERTIFICATION
$
s
I
/s
Q'
,.,
%
%
!JICNA.TUR[ 0' AUTHORIZ[D C[ATlrYIN(i
OFFICIA\"
I D.t.T( AEPOR.T
SUBMITT[C
TEL[rHON( IA_ cock.
...~..........-I-I
I certify thet to the bes.t of my knowledge
end belie! the billed cosh or diSburse'
ments are in accordat)ce with thf trrm<s
of the project IInd that the ~imburseml!'nt
represents the Federal shere due which
has not been previously reQuest&d' end
that 8n inspection has beoen per10rmed
end all \lVOrk is In accordance with the
terms of the award.
t, RECIPI[NT
TYPED OR PAIHTtD NAMe AND Tlll[
SIONA.TUA( 0' A\11HOAIZ[D C[RTlrYINC
0" ICtAL
OA.n: SICN[D
271-JOI
EXHIBIT
b. Representative
certifying to line
11v, I "'.(0 OR ..'NT(O HA"E "HO tilLE
5T"-,,",0"""0 ron.. 171 O_Hl
.'......11.... l.~ P~". t\' ........._....,.~.!"l(! P\v~
T[l'[PMON( tA._ ..0.
...-.6.......4 _~}
%
A-110:12
..
'\
I
"
J
Office of Management and Budget Circular A-110 (7/30/76)
INSTRUCTIONS
Ple-a.. type 0.- print legibly, 11"",.3,4,5,8,9, 10, 1 h. and llv ate ..If'Upl/lMtOry; specific instructions
lor oth.r Item. .... .. foll~:
h.... w.......
M.rit tn. 8If'f'''''''........ ~. " th4> reQue!i'C .. ""..., ....
._ ...... _lei ...,.......n .... .....1 coot 01 -
~
2 Ihttw \IIrI'h.th_ .~unb .re .............., en ... ~
~ndrw,.. .,. _eh ~&~...c .......
, ....., .... .~.( kt."..,f\c.eot1eft ..umboer ...."'ed by
the U.S. Int.rTWIC R....,."w. ~.I.,. rK:l (kle1l'tution)
oocl. It .-qu_ ~ _ ~..,....I .....er),
Thll .J'I'8C. k ~ tor an .c:ooum. numbef M eth.,
I6enttfylntl "u_ tt..t mey M ._....... by -
~.nt.
II Th. pwrpoM ~ _I _m... ..l lh,..,.,p Ie) 10 to
,.""",,;0. ~ _ NfNI"". ...-. ~~ wtMrn .
10",. ~ h"~~"_.M~"'by_
."''''. fv.netoto" e1/ MFttvf'ttl. " _tf'taon,a.! C'M""''' .rwo
~ed, uw as ....ny addtttortel *"'" ., ~ed .nil
"'<tb'. ..... ...,......r .-. ..,... ~ in ........ ~
~(, the """"~ry toNk ., .11I fHOIrwrrK. tv....
"'''1, N .~ .hould t., .......... lft \he -"tobI''''
eoIum" el'\ tfl. ... ...... All ~ .,. ~.. ...
. .",.,..u&.ettw be......
1 ~ 1"_ ........... _ndod .., _h -.. M _, legal
_, ran\.IIl, 01 _e- .nd ..... _ adml"'otnl...
-,-...... "-'ud. the .meunl 01 lnh-rtIIC. ~
wtt." aLlt'horiMC by prqrt"ll'" ~Ion.. Nee aheM'
~ amount.( ~.....,.....,. . ..p.,.. JlhM't.
11. _ _ ~"I"g Ie .... worit 01 _i"C .nd
"esir'dnL Iln8ldng su~ NMf ~~ sinkfnc ....
"",.., .nd aX _ worit --,Inod prior to _I
a.o..~_""Il.
lh _.ft .......rots directly __ wtth tho~.
_ ,,( land, ......C IllNCtU_ OM .-Ied fiIIhI-<>(.
-,
1 W E.-< "-Ie _ .... __ .! ...hlt_ral on._____
110 un... _ _Itoctural onp..-ine _. Do not
lncluck NIt' .1Il'IieUM:s ............ ... Ii.... t1.
III l_~. _ _!.os 01..._"'-. and
........... ,...--.
Ilg E_ all __ __ -<<h _ __ 01
- ....... tho ..........,. ~ 01 "'" rnnt is land
~_, n.. ._ .......w-.in<< '" land ~
~ ~ --o.ted llftth rn.;or ......arvctiort
~ .... ...ow.... tfoom tNc c.laaory -.nd _",en!d Oft
.....k.
Ilh Emo-r____"'~-
~.~.ftdl'8'(~..~rI(~...
"'r f'-ct ~). Do rtOt tnchtde ....-.out'1ltl. ......o-<f tor"
........~" .on,jn;~;w ~ Itw!Je.e .n'IO\Ina.
~ be u..dllllde4 ill ~ __0lIlrtTI on hone &.
J 1 i [nt..er "". _Moun( .t ~ioI'l pe"""enb rT'MMk ..,.. '"_
~ipi.e-nt '0 .r;aptA..cf ~"I. laf'TT'Jll., ~s,.".,., con.
e.ms.. and nOftpn." orwanu.t.orw.
,..... 6--"
111 [nttH" r"OX ...l.n.-s al'td ~ of ."'('fey.... of the
NdP'-". ef'ld flIe'~. to thlird petty contn.cton di.
....atr ~ in perfonni,,8' d...-noMtton or r~r of
..ruc:tl.w'ft 'f'Oft\ ~ lAf'I(I. M proc..ct. from the
... ~ ............ or ..,. twnOofal of structure. should bot
cndft8d to Ih_ .c.courrt; thereby rwf\K1inl "..t
__ ~ _In<! by "'" r "'e..1 Oll'-r.
Ilk [-., thoM .mowftiU eu.ocMted ~h the eC1ual con.
~ 0(. additkH\ t.o. t:K' n-stor.tton of e facility.
AJ.o. &nduttoc in Ih. CMt~. the .mounh tor rro;.ct
kn~ .....c:.. ., .............. s1~I. I.Rd~~"a.
-Ilctotl...
l)t Em_ 8111CM1nU tor.1l e<t""","elll'{. both "..od and mo.,..
abk, --=....,.,..,.. ., eqv1rwn.-nt ut.eod tor conlt ruction. r Of
PAmr'-. penne...."Uy .tt..ched ieboretory '.bl." bout.
hi audio Nu.I .ya......... 1Il"I00000eb4. desk.. chein., and
--..-y -iPmOOOL
II'" e....... --. ~nb '0( aM "-m. not ape-clfk:"'ty men"
-... -.
11.. E.nt.,. thot tlDtJrl cumwlreti", amoun( to date which
NliOukl ... .... attm 01 "noes a "" f'OUtrh m.
)," t:nt.r the ~ 1I1'nOUm. of pf"OI'ra", tncome applied to
ttM rant << contntd. ....,...,,-nent .xcept tncome In.
........ -" tin. J. kS_ntJty 0#\ . M'p.llnllt. Ih..... of p.&pef
tfw aou~ .nd type. et the ~l'ICIOm..,
11, !/rt<< the ..... CU"'U~ amount to dllte which ahoukj
&:. ttM amo.tftl ..........". on Ii..... n minus. the .mount
e.t Ii". o.
1~ 1M.,. the ~ ..t\e,.. of .... amount ..hown on 11M. p.
lit ~ the ~ IJIt ~bUtt.ation 'I"1lnt peyment..
..-.ck to ind+YWuek ""'MU\ pror,..m t.Q'islllho" providn
100 ,..-cont peymen\ ~ the fadonl .p.-.cy.
III Ent..-lhe l<otaI _ ,,( Foderal porn-l:s prwiou.ly
--. II _ Iom\ 10 uoed !of ~1I r..m.
Iow.....-..
11.. ......, tbI ....-.oufll( now ~nr r.q~..... ~,.....
..-..nt. Tl* ~ ~Id 1M ttw .i".,.~nce brtweo_n
the .....,....... --., IN\ ........ .. .nd t. If dift.unt, n.
,.....-.---
1& 10 M ~ed by ttM' ~ ome~ v.oho k r..
~ ..... tn.. ~,..tiotl 01 ..... PrornwTl. Th. d.t.4.
~ k thoc actual ....It the ~ I.. submitt.ed \0 the
f......' ._,
121) To be ~"ed by a;,. omc;...l retHTMt"'.U....
Who .. c.f'Utyinc \0 th4: pworn( or ~-c1 completIon
as ~., tor in VM ,-,,",s 0( t.... 'Nn\ or .,,...,,,,.nt.
A-110:13
,
I
Office of Management and Budget Circular A-110 (7/30/76)
ATTACHMENT H,-CIRCULAR No. A-IIO
MONITORING AND Ju:rORTJNG PJ:.OGRAM
PERf'ORMANCE
1. This att.achment sets forth the proce-
dures for monitoring and reporting program
performl\nce of recipients,
2, Recipients shall monitor the performa:}ce
under grl\nts and other agreements and,
where I\pproprlate, ensure that time sched-
ules are being met, projected work units by
time periods are being accomplished. Ilnd
other performance goals are being achieved.
Thls review shnll be made for ench program,
function, or actlvlt.y of each agreement.... set
forth In the approved application or Ilward
document.
3, Recipients shllll submit a performance
report (technlcl\l report) lor ench agreement
~hllt briefly presents the lollowlng Inlorml\-
tlon for each program, lunctlon, or f\ctlvlty
Involved.... prescribed by the Federal spon-
soring agency:
a, A comparison of Ilctual Ilccompllshments
with the gonls established lor the period, the
findings of the Investlgntor, or both. If the
output 01 programs or projects c!>n be rel\dUy
quantified, such quantitative data should
be related to cost data lor computation 01
unit costs.
b. Reasons why established goals were not
met,
c. Other :pertinent Inlormatlon Including,
when f\pproprlate, anal)'sls and explanatIon
01 cost overruns or hIgh unit costs.
, 4. Except.... provided In a and b below,
and In subparagraph 3a( I), Attllchment G.
recipients shall submit the perlormance or
technical reports to Federal sponsoring agen-
cies and the Financial 5tatus Reports cov-
ering the same period In the Irequency estab-
lished by Attachment G 01 this Circular and,
where approprlnte, a final technical or per-
formllnce report alter completion of the
proje<:t on a d!>te specified by the Federal
sponsoring agency. The Federal sponsoring
agency shall presc,rlbe the frequency with
whIch the perlorm!>nce reports wlll be sub-
mitted ...1th the rcquest for advance or reim-
bursement when that form Is used In Heu
or the Flnnnclal Status Report. Except as pro-
vided lor In parllgraph 5 below, performance
reports shall not be required more frequently
than quarterlj' or less frequently than an-
nually. Federal sponsoring Ilgencles mal'
.....alve the requirement lor recipients to sub-
rnl t performance reports wi th the financial
reports under the lollowlng circumstances:
a, When the recipient 15 required to sub-
mit a performance report with a continua-
tion or renewal application,
b, When the Federal sponsoring agency de-
termines thaton-slte technical Inspections
and certIfied completion dp.t:l wlll be suffi-
cient to evaluate constructlon projects.
c, When the Federal sponsoring agency re-
quests annual financial reports on a fiscal
year basis but It 15 necessary to get I\nnual
prcgress reports on a calendar year basis,
5, Between the required performan~e re-
porting dates. events may occur th:lt have
signIficant Impact upon the project or pro-
gram, In such Instances, the reCipIent shall
Inform the Federal sponsoring I\gency as soon
as the following types 01 condl tlons become
known:
a, Problems. dell\)'s, or adverse conditions
that .....111 materlnlly atlect the ability to I\t-
t..ln program objectives, prevent the meet-
Ing or time schedules nnd gOl\ls. or preclude
the attainment of project worK units by es-
t..bllshed time periods. Thls d!~closure shl\lI
be accompanied b)' a st"tement of the action
taken. or contempll\ted, and any Fedcral as-
sistance needed to resolve the sltuntlon,
b, Favorable developments or events thnt
e:1able time schedules to be met sooner th"n
anticipated or more work units to be pro-
duced than orlglna\ly projected,
6, If anl' perlormance re\'le....' conducted
by the recipient dl~closes the need lor ch"nge
I'; the budget estimates In I\ccordance .....Ith
the criterIa established In Attachment J Co
this Circular, the recipient shall submit a re-
quest lor budget revision,
7. The Federal sponsoring agency shnll
maKe sIte visits I\.'; Irequently I\S practicable
to:
a, Review program I\ccompllshments and
management control systems, and
b, Provide such technJcl\l I\sslstance 1\5
ml\l' be required,
8, Federl\l sponsoring I\gencles shall subml ~
proposed technical nnd performance r*,ports
to the Office 01 Manl\gement I\nd Budget lor
npprovl\l In I\ccordl\nce wI th the report clear-
ance requirements 01 OMB CIrcular No. A--40
.... re\'lsed.
ATTACHMENT r.-CIRCUI.AIl No. A-II0
f'A" ME:NT REQUIReMENTS
1. This attl\Chment estn.b1lshes the re-
quired methods 01 making pl\yments to recip-
Ients. These methods will mlnlml?e the time
elapsing between the disbursement by these
recipients and the transler 01 funds Irom the
United States Trel\sur)' to these recIpients
whether such d'lsbursement occurs prIor to
or subsequent to the transler at tunds,
2, Paj'ments can be made to recipients
through a letter-aI-credit, an adv:lnce by
Treasury check, or a reimbursement by Treas-
sur)' check. The tollo.....lng definItions apply
for the purpose of this attachment:
a. Letter-oj-Credit.-A letter-aI-credit Is
an Instrument certified by an authorl?ed offi-
cial or a Federal sponsoring agency that au-
thorIzes a recipient to draw lunds when
needed Irom the Treasury, through s Fed-
erl\l Reserve bank I\nd the recIpient's com-
mercial bank, In I\ccordance .....Ith the provi-
sions of Treasury Circular No. 1075, as re-
vIsed.
,b. Advance by Treasury check.-An ad-
vance bv Treasury check Is a payment made
by a Treasury check to a reclpleilt upon I~
request belore outlays are made b)' the
recipient, or through the use at predeter-
mined payment schedules.
c. Reimbursemenl by Treasury check,-A
reimbursement by Tre....ury check Is a Tre....-
ury check paid to a recipIent upon request
for reimbursement from the recipient,
3, Except for construction grants and
other construction agreements for which op-
tional pl\yment'methods are authorl?ed. ....
described In paragraph 5, the letter-of -credit
method shall be used by Federal sponsoring
agencies It all 01 the following conditions
exist:
a. If there Is or wUl be a continuing rela-
tionship between a reCipient and a Federal
spensorlng agency for at least 1\ 12-month
period and the total amount 01 advance pay-
ments expected to be recel\'ed .....1 thin that pe-
riod from the Federal sponsoring agency Is
$250.000 or more. as prescrIbed by Treasury
Circular No. 1075. For Joint funded projects
the Treasury has authorl2.ed a dollar criteria
or $120.000. ,
b. il the recIpient has established or dem-
onstrated to the Federa.l sponsoring agency
the .....Illlngness and ability to maintain pro-
cedures that "'ill mlnlml?e the time ell\ps-
Ing between the transler 01 lunds and their
disbursement b)' the recipient,
c. If the reclplent's financial management
svstcm meets the stl\ndl\rds lor lund control
and nccountnblllty prescribed In Attachment
F to thls Circular. "Standnrds for Flnanclnl
Mnn"gement Systems,"
-:. The method or advancing funds by
TreMury check shall be used. In nccordnnce
with the provisIons 01 Treasury Circular No,
-I
A-110:14
1075, .....hen the recipient meets all 01 the re-
quirements specified In pl\rl\grl\ph 3. above,
except ~hose In subparagrl\ph 3..,
5, The reImbursement by Trel\sury check
method shall be the preferred method II the
recipient does not meet the requirements
specified In subparagraphs 3b and 3c, I\bove.
At the option 01 the Federal sponsoring
agency, this method may 1\150 be used on any
cons~ructlon agreement, or If the major por-
~Ion of the prog. am Is I\ccompllshed through
private market rmanclng or Federl\l loans,
I\nd the Federal assistance constitutes 1\
minor portion 01 the program. When the re-
Imbursement method Is used, the Federnl
sponsoring agency shl\ll make pa)'ment
wIthin thirty dnys al~er receipt 01 the billing,
unles. ~he billing Is Improper,
6, When the letter-aI-credit procedure I.
used. ~he recipient shl\lI be Issued one con-
sollda~ed let~er-of -credl t whenever possible
to cover anticipated cl\sh needs lor all grl\nts
and other agreements awarded by the SPOII-
sorlng agency, LIKewise, to the extent pO"sl-
ble, when the I\dvance by TreASUry check
method Is used, I\dvnnces should be con-
solltlnted (pooled) for 1\11 grants and other
agreements made by the sponsoring agency
to that recipient. ' ,
7. Unles; otherwise required by I a"", Fed-
ernl sponsoring agencies shl\lI not wIthhold
pnym~nts lor proper chl\rge. made by recipi-
ents nt any time during the project or pro-
grl\m period unless (a) a recipient has hUed
to campi)' wl~h the program objectives, awnrd
conditions. or Federl\1 reporting require-
ments: or (b) the recipient Is Indebted to
the United States, I\nd collection 01 the In-
deb~edness .....111 not Impair accompllshment
or the objectives 01 a project or program
sponsored by th! United States,
Under such condl tlons, the sponsoring
agencj' mny. upon reasonl\ble notice, Inlorm
the recipient thl\t paj'ments will not be msde
lor obllgatlons Incurred I\ft.er a specified date
\lntll the conditions are corrected or the In-
debtedness to the Federal Government Is
llquldnted.
ATTACHMENT J,-CIRCUI.AI\ No. A-II0
REVISION OF' TINANClAL. rLANS
1. This attachmen t sets lorth crl terla and
proeedures to be follo.....ed bj' Federal spon-
sorIng ngencles In requiring recipients to re-
port 'deviations from financial plans I\nd to
request approvals lor financIal plan re~
visions.
2. The nnanclal pll\n Is the financial ex-
pressIon of the project or program as ap-
proved during the application l\nd/or ~ward
process. It mal' Include either 4he Federa\ and.
non-Federal share. or only the Federal share,
d!pendlng upon sponsoring agency requlre,-
ments. It should be related to perlormance
for program evaluatIon purposes whenever
I\pproprll\te and required by the Federa.l
sponsoring agenc)',
3. For non construction awards, recipIents
!:hall Immediately request approvals tram
Federal sponsoring I\gencles when there Is
re:<son to belleve that within the next s!ven
days a revision will be necessary lor the
lollowlng reasons:
1', Changes In the scope or the objectll"C or
the project or progTam.
b. The need for additional Fedeml lund-
Ing.
c, The transfer or amounts budgeted fcr
Indirect costs to nbsorb IncreMes IndIrect
costs or vice versa, l! approval 15 required
by the Federal sponsoring agency,
d, The expenditures 1\5 require l\ppro\'al In
accordance ",'Ith F'MC 73~. "Cost Prlnclnles
for Educatlonl\l Institutions," For all other
awnrds. nppro\'al requIrements lor other
Items 01 expenditures mal' be Imnosed If they
nre conslstcnt ",'Ith those In FMC 73~, No
other rcqulrements lor specific Items ml\Y be
I
Office of Management and Budget Circular A-110 (7/30/76)
Imposed unless a deviation has been ap-
proved by the Ornee of Mana{;ement and
Budget,
e. Recipients plRn to trRnsfer funds RlloU.,d
for training allowances (dlI'ect payments to
trainees) to other categories of expense.
4. None of the substantive programmatic
work under a grRnt or other agreement may
be subcon~racted or transferred without prior
approval of the Federal sponsoring agency,
This provision does not apply to the purchase
of "upplles, mnterlal, equipment. or general
support service",
5. The Federal spon.<;Qr1ng D.{;ency may
also, at Its option, restrict ~ranslers of funds
l\Jllong direct cost cn.tegorles for awn.rds In
....hlch the Fedcral shAre exceeds UOO.OOO
when the cumulative Rmount of such tral16-
fcrs exceeds or Is expected to exceed flve
percpnt of Ule totl\.1 budget as la.st approved
b)' the sponsoring agcncy. The SRme crlUlrla
shall apply to the cumulative Rmount of
transfers Rmong prog.-...:ns, functions. nnd
Rotlvltles when budgeted scparately for an
Rward, e"-Cept that tbe FederRI 51'onsorlng
agency shn.!l perrnLt no transfer that would
cause any Federal Rpproprlatlon, or pnrt
thereof, to be used for plL--p<J6CiS other than
th060 Intended.
6. All other changes to nonconstructlon
budgets. except for the changes described
In paragraph B, below, do not require ap-
proval. This Includes tbe use of recipient
funds In furtherance of program objectives
over and above the recipient. mlnJmum shue
IncJuded In the approved budget,
7. For construction awards. recipients
shall request prior "pprovals promptly from
Federal sponsoring agencies for budget re-
visions wherever:
&. The revision resul ts from changes In
the scope or the objectl ve of the project or
program, and
b. The revision Increases the budget
amoun~s of Federal funds needed to com-
plete the project.
B. When a Federa.! sponsoring Rgen~y
makes an award that provides supportdor
both construction and nonconstrllctlon work,
the Federal sponsoring agency may require
the recipient to request prior approval from
the Federal sponsorinG D.{;ency before m:lklnG
any fund or budget trAnsfers between the
two types of work sU;:>I""rted.
9. For both constructIon and nonconstruc-
tlon awards, Federal sponsorl~ Rgencles
shJ\l1 require recipients to notify tbe Fed-
er..1 sponsoring Rgency promptly ....henever
the amount of Federal autborlzed funds Is
expeckd to exceed the needs of the recipient
by more thRn 1-5.000 or five percent of tbe
Fecleral award. whlcheyer Is greater. This
notification wUl not be requlI'ed If appllca-
tlons for additiOnAl funding Are submJUe:1
for continuing grants or contracts.
10. When requesting Rpproval for budget
revisions. recipIents shall use the budget
fonns that were used In the application
unless a letter request ...ill suffice.
11. Within 30 calendar days from the date
of receipt of the request lor budget revi-
sions, Federal sponsorlns Rsencles shall re-
vIe.... the request and notlty the reclplen t
whether ~he budget revisIons have been ap-
proved, If the revI"lon Is still under con-
sideration at the end of 30 calendllr days
the Federal sponsortnG agency shall Infor~
the recipient In wrlt!n, of the dat.e when lbe
reclplent mllY expect the decL,lon,
ATTACHMENT K.--cIRCU':"R No, A-110
CLOSEOUT rnOCEJH:mES
1. This, attRChment prescr1bes untform
closeout procedures for Fedenl grant:; and
other ngreements ...'Ith recipients
2, The followinG definitions shllil apply for
the purpose of thL, at~achment:
a, CLo.couf.-The c100;e0ut of a grRnt
agreement Is the procel\S by which" FederRl
lipoDBOrl~ agency detennln... that all Rp-
pllcahle admJnlst.ratlve actions and ILl I re-
qulrcd work of the ap-ccment have heen
completed by tbe recipient and the Pederal
sponsoring a{;eney.
b, Dale 01 complction.-The date of com-
pletion Is the date on which ILl I work under
grants and other ap-eemenls 18 completed or
the date on 'the award document, or any
. liupplement or amendment thereto. on which
Pederal liponsorshlp ends.
c. Duallowed co.t..-Dlsallowed costs Rre
those chnrges to a grant or otber R{:reement
that the Pc<Iernl spon.'IOr!ng agency or I L..
represcn~"lIve determines to l>c unnllow-
able, In RccordAnce with the applicable Fed-
eral cost principles or other conditions con-
tained In tho ap-eements.
3. All Pederlll sponsorinG agencle.~ lihnll es-
tablish clOGeout procedure., tbat lnclude the
following requirements:
a, Upon request, tbe J"ederal sponsorlns
Rl:r.ncy shnll mRke prompt pnymenL.. to n
recipient for allowable relmbursnble costs
under the grant or other agreement being
closed out,
h. The reelplent shall lmmedlRtely refund
nny balance of unobllgRted (unencumbered)
casb that the Fcderal sponsoring nl;'ency has
adVl1need or pllld and that Is not authorl7.ed
to be retaIned by the recipient for use In
otber grants or other agreements,
c. The Federal sponsoring agency shall ob-
tain from the recipient withIn 90 calendar
days after the date of completion of the
agreement all financIAl, performnnce, nnd
otber reports requlI'ed as the condition of the
agreement. The agency may grant extensions
wben requested by tbe recipient.
d. When authorized by the grant or otber
agreement. the Federal sponsoring agency
shall make a settlement for any upwnrd or
downward adjustments to the Federal sbnre
of costs after tbese reports are rccelvcd.
e. The recipient shaU account for any prop-
erty acquired wlth- Federal funds. or re-
ceived from tbe Governmen~ In accordance
with tbe provisions of Attachment N to this
ClI'cular, Property Management St.nndards.
1. In tbe event a final audit hl'S not heen
performed prior to the closeout of the gTRnt
or other agreement, the Federa.! sponsoring
'1l.gency shn.!1 retain the rlgbt to recover nn
approprtate amount after fully conslderlnl;'
the reco=endatlons on dtsallowed C05ts re-
sultlns from the finRI audit.
4. Suspension and Ulrmlnatlon procedures
are conlnlned In Attacbment L to tbls ClI'-
cui aT.
ATTACHMENT L,-CIBCULAIl No. A-110
SUSPENSION AtrD TJ:RNl.NATION PBOCEDU'lll:S
1. This attachment prescrtbes unl10rm
suspenSion and termination procedure. lor
Federal grants and other agreements with
re~lplents.
2. The following definitions shaU apply
fer the purpcse of this attachment:
a, Tcrminal;on.-The termination of a
grant or otber agreement. means the can-
cellation of Federal spon.<;orshlp. in whole or
in part. under an agreement at Rny time
prior to tbe date of completion.
b. Suspension.-The suspension of a grRnt
or other al;'reement Is an action by a Federnl
sponsorlng agency that temporarUy su,,-
pends Federnl spons:>rsblp under the grnn t
or other RliTeeliDent. pending corrective ac-
llon by the recipient or pendlng a decision
to terminate the grRnt or other agreement
by tbe Federn.! sponsoring a{;ency.
;3, All Federal sponsoring acencles shnll
provide procedures to be followed when a
recipient has faUed to comply with the Ulrms
J
A-110:15
of the grant or other agreement lInd condi-
tIons or slnndards, When that occurs. the
FederRl sponsorlns agency may, on relLSOIl-
able notice to the reclplen~, suspen,d the
grRnt or other agreement, and withhold fur-
tber pRyments, prohibit the reclplen~ from
lucurrLng additIonal obllgatlons of funds,
pend inS correcllve Rctlon by the recipient, or
a decision to termination In accordlLDce veith
puagraph 4, The rederal sponsorinG agency
shall allo.... all necessary and proper costs
that Ule recipient could not reasonRblv Rvold
during the period of suspension provld~d that
they meet the provisions of the applicable
}'edeml cost principles.
4. Fedeml sponsoring agencies shall pro-
vide for the systematic settlement of ter-
mlnnted grants or other agreements Includ-
Ins the following:
a. Termination lor CQ1L5C,-The Federal
sponsoring agency niny reserve the right to
terminate lIny grant or other agreement In
whole or In pnrt at any time before the date
of comr>lellon, whenever It Is determined thRt
the recipient ha.s fRlled to comply with the
conditions of the asreement. TIle Federal
sponsorlnl;' agency shnll promptly notlly the
recipient In "'"Tltlng of the determlnntlon and
the reasons for the termination, tosether
...'lth the errectlve dnte, Payments made' to
recipients or recoveries by the FederaJ spon-
sorng asencles under grants or other agree-
ments termlnnted for cause 1;hnll be In ac-
cordnnee with the Jegal rights and liabilities
of the partles.
b. Tenninationlor conveniC1l-cc.-The Fed-
eral sponsorinG agency or recipient may ter-
minate grants and other agreements In whole
or In part ....hen both parties ngree thRt the
continuation of the project would not pro-
duce beneficial results commensurate with
the further expenditure of funds. The two
parties shnllagree upon the termination con-
ditions, Including the errectlve date and, in
the case of partlnl terminations, the portion
to be terminated. The recipient shall \lot
Incur ne.... obllgatlons lor the terminated por-
tion after the eITeetlve date, and shall can-
cel RS mnny outstanding obllgatlons as pos-
sible. The Federal sponsoring agency shall
allow full credit to the recipient for the
Federal share of the noncancellable obllga-
tlons, properly Incurred by the recipient prior
to termlnatlon.
ATTACHM.:ENT M,-CIRCU'uAR No, A-lID
STANDARD FORM TOR APPLYINC FOR
FEDERAL ASSISTANCE
1. This attachment~romulg"'tes a stand-
RTd form (SF 424) to be used by public and
'private InstltutloDlS of hIgher education.
publIc and private hospitals and other quasl-
publlc and private nonprollt orgRnlzatlons as
a face sheet for Rwllcallons when applyinG
for Federal grants under programs covered
by Part 1, Attachment A, OMB Crlcular No,
A-95. In addition, agencies are partlculRrly
encouraged to etxend the use of SF' 424 to
common programs "'ith StRte and local gov-
ernments ....here this form Is now required by
FMC 704-7,
2, The SF 424 may also be used. on an op-
tional ba.sls. to hlIllll the requirements of
OMB Circular A-95 for a notlflcatlon of In-
tent, from applicant to clearinghouses. th:ct
F'ederal assistance "'ill be applied for, Local
or State elenrlnghouse procedures will govern
the use of the lorm for this purpose,
3, The standard form will also be used 1)y
FederRI Rgencle' to report to the c1eRrlng-
hOllSCS on mnjor actions tnken on ,,?pllca-
tlons reviewed by clearinghouses In accord-
Rnce ...'Ith OMB Circular A-95, Rnd to notlly
States of grRnts-ln-Rld a",'arded In Rccord-
nnce ...'Ith Treasury ClrculRr 10B2,
I
.I
"
,
Office of Management and Budget Circular A-110 (7/30/76)
A-110:16
FEDERAL ASSISTANCE L M>PLI. I. Il\It<IBER 3. nAn I, "'-"'8lR
~uc-....
eMIT'S nON
1, TYPE 0 f' RUJ'f'UCA Tlo!( ""Plio . D.l.11 ID~1'fTl- ., DArt f_, ........l~ ....
0' e.a. nOf1 r__ -'" - !'IUI
ACTION 0 1J'l'llCUlOH 19 A.SSIC"EO 19
(M""'.'" 0 HOTIfICATJOl( Of IKTDCT ('OpL) lAG..
,.............
~) 0 RU'ORT Of rrOEAAl ACTIOfI 19l4Rl
4. LEGAL APPLICANT/RECIPIENT 5, '~D~ML ~MPLOyr;R tO€NTIPIC1.TlON NO.
t., ~pli~nt Hafft4 :
k. Orllniuliofl U,,1t : e.. I I \. I I \ I
t, StrHl/P.O. Ilo< : PRO. a, HUWBER
d, City GRAM .. 11TH
: L ecw.ty :
( Frett"
f. SbW : &, ZIP Cod.: '-od...aJ
.. t<>"Llol 1'....... (No...... Cot4lo, I
c " ....,.1...... No.) :
~ 7. TITLE AND DESCRIr-TION 0' APPLICANrl PROJlCT B. TYP[ Of ...,.PLIOAN'T (Rfel f'1 ENT
E "-St.,. M-Com",u.ity /o.c.11.. ~
6-1 ,,'.,..l.t. .., J- Hirh.. lduc.alionii tM1ltutiOl'l
L C-SubsLlI. )- I"di." lrlbe
~ Olrtriot I'o-OIhw (S,..~f,,'I:
~nty
E-Clty ,
~ f-~ool Dlflttd
S-S~'I Porpow ioU.... 0
~ II !TIel S'At.rr .~fI,...,.;.o"C
~ TYPE QT MSISTANC[
,....:&8:lic G,..l [)-.mur......
~ &-SupClt......bI 'nit( '~I'\.r ...t..... a,.".,.... [IJ
g c-Loe a "",,I< 141l61' ( .)
)0. AREA 0' PROJecT IMPACT (Nof/ll't'" 0{ ef'tCu. 10'tI'fttc.&. 11. ESTI~"1'Mtm-- 11, TYPE 0' APPUCATlON
S....... .....l BER T OHI "-"- t-R...i,~ (.....t.M,,","wUon
IfWU1TING a-A.".....I D-GoftUIl\H.tlN; ,.1-0
Eftl..,. aP1""o))"f"'i4lf
11. p~EO ~UNOING 1-4, CONGRESSiONAL OISTRtCTG 01': 15. TYPE or CHANCE (Tvr J I~ ..,. JJ..)
S I. APPUC1Jff ~ PllOlee'T .A.-Incru... Doth." f-{)IMt (Spe~f,,):
t, fWERfII. .00 B-Docr.... 0.111 n
,l,!'PLlCAHT I &-1,,;,..... Du~n"Cll\
b. .00 D-o.u..... O.,..Uoa
16. PROJECT START n. ~JECT [.....caKtBatiOll
t. n.l.TE .00 tM Tt T _, -..u. "'7 DURATION .",kT appro. OTI
d, LOCAl. .00 19 IJ ....rlu ".,-.io-.... 14tl,,,(,)
I.OTHH .00 11-, U''fI_TI!:O OATt TO J'_, ...-.u. do" 19, EXISTING PEOERAL IDENTIFICATION NUMBER
BE SU&MITTED TO
t. TOTAl S ,00 fEDER,I,L I'oGENey ~ 19
20. fEDERAL AGENCY TO RECEIVE REQUE.5T c""_ Cllw-lh..... UJ' ....o.J 21, REMARKS ADDEO
0'1'.. o No
~ %2.. I. 1. th. ttn"t .., rrry knowled,. ."e! lI-..UI'f. .. H' '-.:""'" br OMB Circullr ,..,...95 tkh IPt"fle,lloa .., wbMlt1-<. ~H"KI.~t k i~. N",.,. RNpfOft.II4I
d.lI i. tJ\i. ~pliClt'on/.ppliutlOA ere .trvctiOAI UI,,"ln, to Ipprooti.U .1..rh".....1on ."d ,II ,..po"'" .,.. .n..cJ..c: .~. .,~
~ THE '<u. I.d corr"t. )h. doewm~t h.. -
~ APPLICANT lIu'>' .uthoriJed by 1>0. 10""1"'''''[ bo<lr 0/ 0 0
CERTIf'IES ttt. 'N)liunt ."d tt.. apopheall't will ~ 11)
5: THAT ~ ....~ 'h. .the+..,( ..,..,..K$I W' tit. auJII&- I2l 8 0
11 an.. ... 'ODt'OY.d. 0
131 ,
~ 23, I I. TYPLD tW<I! AJIO TllU .. IID~T\JRE L O.l.TE S IQ tftD "I
CERTIFYING1 y_. ... ...v. GAV '
6 REPRE. 19
:: SENTATIVE 1
1>4. AGENCY .....ME %5.. APPLICA. 1'__ ~ ....v
TION
RECElVED 19
26, ORaAN 1l.A TlONooA-L UNIT lA1. ADMINISTAATIV[ O'flCE 12L 'EDERAL APPLICATION
~ IDENTIFICATION
~ 2$. ACOREU \ ao. 'EDERAL OF:ANT
~ IOENTlflCA TION
~ 31. ACTION TAKfN Jt. FUNO~ I )'-- -.... "1 ~. 1'_. ...-.u. ....
I I S STARTING
0 I. AWAAOEO .. ~!DfAAL .00 :n. ACTION DATE ~ I~ DATE 19
.. 0 ~. ItEJ1CTEO IV ~T.a.cT 'OR ...OOITlONAL tt< 'QtlM A, 36., 1'_, ... ...v. ...."
Q \. ,l,!'r'UCAHf .00 . -
1 .ON (x..",... ~ ....."'^~ ",.._0..,.) ~NDING
0 t. I\ETVlllftO POIt t. Sl"T[ ,00 DATE 19
1Jl EHDf,ffHT C, LOM, .00 37. REMARKS ADDED
~ o (, DEfI!RREO orm" I .00
t e.
w o a, WlncDAAl'ffl l. TOT AI. S .00 o Y.t ONo
..
I :OERAL AGEIfCY I'. ,. .d", - '-'.'~ --. -~ - .-;..~- -_. \. ~(OERN. .o.GE"CY ~" OfTlClfII.
licl"M. II 'I""er ....flOI\... ). ... .MI.,. ,.......~"'" IIf 'Mt 1..01.16 Clrcul.,- Jr,..-;5. (Nc.",. ...4 ...wpM... ~.)
K .... .... eo( .. ~ ..0..
A-95 ACnON
,
OMB Appro...1 No. ~rll
__........."'..... ........~.. ,..~ ..."'........ , ,,1"\. "'''1
"
I
.I
Office of Management and Budget Circular A-110 (7/30/76)
A-110:17
SECTlON IV-REMAAKS (Ple(U~ re/eren<< tM rx-c;per item "umbn- Irom Se.ct~ I, II O'f' III, il o.ppli=bu)
.. '\
STANDARD FORM 424 p',GE 2 (10-75)
1
r
I
Office of Management and Budget Circular A-110 (7/30/76)
A-110:18
GENERAL INSTRUCTIONS
This is a multi.purpose standard form. First, it will be used by applicants as a required facesheet for pre.
applications and applications submitted in accordance with Federal Management Circular 74-7. Second, it will
be used by Federal agencies to report to Clearinghouses on major actions taken on applications reviewed by
clearinghouses in accordance with OMS Circular A-95. Third, it will be used by Federal agencies to notify
States of grants.in.aid awarded in accordance with Treasury Circular 1082. Fourth, it may be used, on an
optional basis, as a notification of intent from applicants to clearinghouses. as an early initial notice that Federal
assistance is to be applied for (clearinghouse procedures will govern).
^PPUChrrr PROCEDl,;fiES FOR SECTION
Applicant will complete all items in Section I. If an item is not applicalHe, write uNA". If additional space is needed, insert
an asterisk ...... and use the remarXs 5ection on the back of the form.1v1 explanation follows for oach item:
Item
1. MlIO\ appropriate box. Pnl'lIpp!lcat:iQn and appllCZl'
tion guidllnce is in fMC 74-7 and Fedenll agency
p~n1m instructiom. Notlfic>ltion of intent RUid.
ance is in Circular f.r-95 procedures from clear.
inghouu. Applicant will not uu "Report of Fodensl
Action" bolt.
2a, AppllCllnt's own control numw. If desired.
2b. Ollte SectIon I Is prepllrDd,
3a, Numb<< oSlJlgned by State c1el1ringhouse, or If dole-
gated by State, by areawide clearinghouse. All ~
QUests to Federal agencies must cont:Din this ldenti.
fi er if the progra m is covered by Circu III r J.r-I35 and
required by applicable. State/areawide clearing.
house procedures. If in doubt. consult your dosr.
inghouse.
3b. Dz:tc applicant notlfied of clC(lrinehouse k1:mtifier.
4&-4h. Leglll name of appllC%nt/reclplent, name of primary
orgllnizstional unit ...tlich will undcrtrJlul the assist.
lInce activity, comp:::1:e address of applicant, and
name and telephone number of person who can pr0-
vide further informlltion about this request.
5. Employer identification number of applicant as as.
~Igned by Internal Revonue ServIce.
68. Uu Catzllog of Federal Domestic Assistzsnoe num.
ber assigned to program under which aS3istzsnce is
requested. If mora than one prognlm (e.g.., )oint.
funding) write "multiple" and explain in remark:s.
If unknown. cite Public U!wor U.S. Code.
6b. Program title from Fedora I ~talog. AbbnMate If
necessary.
7. Brief title and appropriate description of project.
For notilic::tion of intent, continue in remllrXs sec.
tion if necesSllrY to convey proper description.
8. Mostly ulf-cxplanlltorY. "City" includes town. town.
ship or other municipality.
9. Check the type(s) of assimnce requested. The
definitions of the terms are:
A.. Basic Gront. Ar1 original request for Federal
funds. This would not include any contribution
provided under a supplemental gnmt.
B. Supplemental Grant. A request to increose a
bllSic grant in certain CIlSe-s wholll the eligible
llpplicant cannot supply the required matching
share of the basic Federal pro:?ram (e.g., gnmts
awarded by the Appalachilln Regional Commis.
sion to provide the applicant a matching share).
C, Loan. Self explanatory.
Item
10.
11.
12.
D. Insunlnal. Se<< explll08torY.
E. Other. Explain on rerMrXs page.
G<Nemmenblr. unit when! ltignifK:ant and meening.
tvl impact cook! be observed. Un only largest unit
or units effecU>d. such 8$ Sbrte, county, or city. If
cntilll unit affected, list It nrther than subunits.
Estimated number of persons directly benefiting
from project.
Use appropritrta code letter. Definitions are:
A.. New. A submittal tor the first time tor 1I new
protect.
13.
B. Renewal. Iv1 extension for an additional fundlngl
budget period for a project having no projected
completion date, but for which Faderal support
must be renewed each year.
C. Revision. A modification to p~ nllture or
scop1l which may result in funding change (in.
crease or decrellse).
D. Continuation. Iv1 mctension tor an additional
fundill(t/blJde'et period for a pro}ec:t th e age n cy
initially agreed to fund for a definite number of
ycers.
E. Augment:zrtlon. A requirement for additionel
funds tor a project previously llWOrded funds in
the same funding/budget period. Project natura
and scope unchanged.
!\.'TIount requested or to be coritributed during ,the
first funding/budget period by ellch t:ontriMbr.
Velue of in.kind contributions will be Included. If
the action is a change in dollar amount of an eltist.
ing grant (a revision or augmentation). indicate
only the amount of the change. For decreases en.
close the amount in parentheses. If both basic llnd
5U pplerrie nUl I amounts are included, breBkout in
remark:s. For multiple proeram funding, use totals
and show progrnm brellkouts in remarXs. Item defi.
nitionS: 138. amount requested;from Federal Gov.
ernment; 13b. amount applicant will contribute;
13c. amount from State, if llpplicant is not a State;
13<1, amount from local government. if llpplicant is
oat a local government; 13e, amount from any other
sources, explain in remarks.
~ exp180at0ry.
The district(sl wh~ most of llctual work will ~
accomplished. If city.wide or State-wide, covering
several districts. write "city.wide" or "State.wide."
Complete only for revisions [itern 12c), or augmen.
tations (itern 12..).
14.11.
14b.
15.
STf\NDl\RO FORM 424 PAGE 3 (10-75)
; .
I
- I
Office of Management and Budget Circular A-110 (7/30/76)
A-110:19
Item
16.
17.
lB.
Approximate date project expected to befin (usually
1I!>~i8tM:l with estimated date of lIvailllblllty of
funding).
[stimoted numb1lr of month!> to complete project
alter Federal funds are avoiloble.
Estimated date preapplir.8tion/appllcation will be
submit10d to Federal agency If this project require!>
cleerlnghou!>tl rrNiew. If raview not requirad, thi!>
dllte would usually be ~mo as dale in Item 2b.
Item
19.
Existing Federal Identification number If this II not
II new request and directly relates to II previous
Federal action. Otherwise write "NA".
20.
IndiCB"te Federal egency to which thiS request is
addressed. Street address not required, but do use
ZIP.
21.
Check lIppropriate l>r.x as to whether Section IV of
form contnins remllrl<S and/or additional remarks
are attechod.
^PPLlCANT PROCEDURES FOR SECTION II
Ust clccrinllhousefo to which submitted and show
In eppropricte block3 the stetus of their responses.
For more then three clearinghouses, continue In
remorXs section. All written commenb aubmlt1ed
by or through cleeringhouscll must be etteched.
NlIme IInd title of authorized rcpresentative of leglll
IIpplicant.
Applicants will 1I1ways complete Items 23e, 23b, end 23c. If clearinghouse review Is required, Item 22b must be fully com.
pleted. An explanation follOWll for each item:
Item
23b.
Self explanotorY.
23c.
Self oxplanlltorY.
Item
22b.
23a.
Nota:
AppllCllnt completes only Sections I and II. Section
III is completed by Federal agencies.
FEDERAL AGENCY PROCEDURES FOR SECTION III
Item
24.
Executive deportment or Independent agency having
program edministrB~ion responsIbility.
SeH explanatory.
Primary organiZlltlonal unit below deportment level
having direct program management responsibility.
OfTico directly monitoring the program.
Uu to Identify non.aWllrd actions where Federal
grant identifier in item 30 is not applicable or will
not suffice.
If epplicant.supplied information in Sections I and II needs no updating or adjustment to fit the finlll Federal action, the
FedelCll agency will complete Section III only. An explenatioQ for each Item follows:
25.
26.
27.
2'8.
29.
Complete add~ of administering office shown in
Item 26.
Use to identify award ections where different from
Federal epplication identifier In item 28.
Self eltplanlltorY. Use remarXs section to amplify
where eppropriate.
Amount to be contributed during the first funding!
budget period by each contributor. Value of in.kind
contributions will be includod. If the action is a
change in dollar amount of an existing grant (a revi.
sion or augmentation), indicate only the amount of
change. For decreases. enclose the amount in pa-
rentheses. If both basic and !>upplemental amounts
are included. breakcut in remark!.. For multipf1: pro.
gram funding, use tote Is and show program break.
outs in re'lTlarks. Item definitions: 32a, amount
awarded by Federal Government: 32b, amount ap'
plicant will contribute: 32c. amount from State, if
applicant is not a State; 32d, amount from local
governmc:'!t if applicant is not a local government;
32e, amount from any oth~ ~ourc~. explain in
remarks.
30.
31.
32.
33.
34.
Dnte dctlon was taken on thl~ request.
Date funds will become availeble.
Item
35.
Name lInd telephone no. of egency person who can
provide more informlltion regllrding thl~ assistance.
Date after which funds will no longer be available.
Check 8ppropriete box as to whether Section IV of
form contains Federal remarks and/or attachment
of edditional remarlu.
For use with 1\-95 action notices only. Name and
telephone of person who can assure that appropri.
ate 1\-95 action has been taken-If same as person
shown in Item 35, write "same". II not applicable,
write "NA",
36.
37.
38.
Federal Agency Procedures-special considerations
A. Treasury Circular 1082 compliance. Fe4elCll agency will
assure proper completion of Sections I and III. If Sectiohl
is being completed by Federal agency, all applicable items
must be filled in. Addresses of State Informlltion Recep.
tlon Agencies (SCIRA's) are provided by Treasury DlJpart.
ment to each agency. This form replaces SF 240, which
will no longer be used.
S. OMS Circulu A-95 complillnce. Federal lIgency will as-
sure proper complction of Sections I, II, and III. This form
is required for notifying all reviewing clearinghouscs of
major lIctions on all programs reviewed under A-95.
Addresses of State and areawide clearinghouses arL pro.
vided by OMS to each agency. Substantive differences
between applicant's req\Jest and/or clearinghouse recom.
mendations, lInd the prOject as fInally awarded will be
explained in A-95 notifications to cleuinghouses.
C. Special note. In most, but not a1l Stvtes, the A-95 Stat~
clearinghouse lInd the (TC 10e.2~ SCIRA /He the same
office. In such cases, the A-95 awr.rd notice to the Sta~
clearinghouse will fulfill the TC 1082 lIWllrd notice re-
Quirement to thc State 5ClRA. Duplicate notification
should b1l avoided.
STANDARD FOnM 424 PAGE 4 (10-75)
I
Office of Management and Budget Circular A-110 (7/30/76)
. ATTACHMENT N.--CIRCULAR No. A-110
PROPERTY MANAGEMENT STANDARDS
J. This attachment prescrib~s unllorm
slandards go"ernlng management of prop.
crt)' furnished by the Federal Go,'ernment or
whose coot WI'S ch"'ged to a project sup-
poned by a Federal gra.nt or olher Agreement.
Federal sponsoring agencies shall require re-
clplenls to observe these sLandards under
Granls and other agTeements and shall not
Impose additional requirements unless spe.
clllcall)' required by Federal law. The recipi-
ent may use Its own properLy manll~ement
stnndnrds and procedures provided It observes
the pro\'lslons of this attach men L. This al-
tachmenl also applies to subreclplents IlS
referred to In paragraph 5 of the basIc clr.
cular.
2. The following definitions apply for the
purpose of this atLnchmcnt:
R. Real propcrty.~i.cal .propert)' means
IRnd, Including land Improvemenl.6, struc.
tures Illld appurtenlUlces thereto, but el<-
cludlng movable machinery and equlpmenl.
b. Personal property.-PenKloIlI proper I)'
of any kind excepl real properl)'. It ma)' be
Innglble-ha\'lng ph)'slcal exlslence, or lotan-
glble-ha\'lng no physical exlslence. such IlS
plllents, InventIons and copyrights.
c. Nonexpendable pcrsonc.l propcrty,-Non-
expendable personal properly meallS tangible
personal properl)' ha"lng a useful life of
more thlln one year Ilnd an acqulslllon cost
01 ~300 or more per unit exempt that recip-
Ients subject to Cost Accounting Standards
Board regulatIons may use the CASB stand-
ard of f-500 per unit and useful We of two
)'ears. A recIpIent may use Its own definition
of nonel<pendable personal property provided
that the definition would at lellSt Include all
tangible personal property D.S defined above.
d. Expcnd4blc personal proper/y.-Expend-
able personal property refers to all tangible
personal property other than nonexpendable
property.
e. Excess property.-Excess property means
property under the control of any Federal
agency that, as determined by the hea<!
thereof, Is no longer requIred for Its needs
or the discharge of Its responslbllltles.
f. Acquisition cost 01 purchascd non ex-
pC11l1able personal property.-Acqulsltlon cost
of an Item of purchased none~pendable per-
sonal propert~. means the net Invoice unit
price of the property Includlog the cost of
modifications, attachments accessories or
auxUlary "ppnraLus necess~ry to make' the
property usnble tor the purpose for which It
was nequlred. Other charges such as the cost
of Installation, transportation, taxes, duty
or protective In-t.ranslt Insurance. shal1 be
Included.or excluded from the unit acquisi-
tion cost In accordance with the reclplent's
regular accounting practices.
g. Exempt property.-Exempt property
means tangible peTEonal property acquired In
whole or In .pn.rt with Federal funds, and
title to which l< vesled In the recipient with-
out further obligation to the Federal Govern-
ment except D.S provided In subparagraph 6a
belov.'. Such uneondl tlonal vesting at title
wUl be pursuant to any Pedernl leelslatlon
Lhat pro"ldes the Federal sponsorlnr; agency
wIth ndequn.te authority.
3. Rcal properly.-Each Federnl sporosorlne
agency shal1 prescribe req ulrements for re-
clplenls concerning the usc and dlsp051tlon
01 real property acquired partly or whol1y
under grants or other agreements. Unlcss
otherwl<e pro"lded by statute, such re']ulre-
m~nts. as a mInimum. sllall ("0::1.,,1:1 lhe
:.:lllo""l11g:
a. Tille to real propert)' shall vest In the
reclplenl subJecl to the condlllon that the
recipient shall use Ihe renl property 10r Ihe
authorized purpose of the proJecl,.ns long as
it is needed.
b. The recipient shall obtain approval by
the f'ederaJ sponsoring aj:ency lor the use of
real property 10 other projects when the re-
cipient de\..ermlnes that tlJe properly Is 110
loncer needed for the purpose of the orl~lnlll
project. Use In other projects sh..l1 be IImlLcd
to th(lfie under other fe<leroJly sponsored proJ.
ects (I.c., grant.< or other agreement.s) or pro.
grams that have purposes consistent with
those author17.cd for support by the f'cdenl
sponsorln!: "{'ellC}' ,
c. When the real properly Is no 10llr:er
needed IlS provided In a R.nd b .,bove. t.he
recipient shal1 requc.<t disposition Instruc-
tions f rom the FederRI sr><>nsorl nr, aGency or
Its successor Fedeml sponsorlllr, "l:eney. The
Federal br><>nwrlnc acency 6hRl1 observe the
following rulcs In the dlsr><>sltlon Instruc-
tlons:
(I) The recipient may be permitted to re-
tain title aJter It compensates t.he Feder..l
Government In an Rmount computed by ap'
plylne the Federal percentar,e of pnrtlclpa-
tlon In the cosl of the orlclnR.1 project to the
fair mR.rket value of the property.
(2) The recipient may be directed to lIell
the property under (;Uldellnes pr<}\'lded by
the Federal sponsoring agency and pay the
Fe~eral Government an amount computed
by applyIng the FederoJ perccnl.nge of par-
tlclpatlon In the cost of the orll:lnal project
1.0 the proceeds from SAle (after deducting
actual and reasonable selling and f"'-up el<-
penses, If any, from the SAles proceedS).
When the recipient 15 Ruthorl7.cd or required
to sell the property, propcr Mles procedures
shal1 be established that provide for competi-
tIon to the extent practicable and result In
the highest possible return.
(3) The rectplen t may be dlrectcd to trans-
fer ti tic to the property to the Federal Gov-
ernment provided that In such cases the
recipIent shall be entitled to compcosatlon
computed by applyIng the reCipient's per-
centage of partlclpatloo 10 tbe cost of the
program or project to the current falr ma.rkct
value of the property.
4. Fcd.craly-olDn.ed noncxpendablc personc./
property.-Tltle to federally-owned property
remains ves\..ed 10 the Fc~eral Government.
Reclplcnts sh..ll submit ann u 0.11)' ao Inveo-
tory 115tlng of federally-owned property In
their custody to the Pederal sponsoring
agency. Upon completion of t.be ap'eement
or wben the property Is no longer needed.
the recipient shall report the property to
the Federa( sponsoring agency for furtbcr
acency utlIl7.ntlon.
If the Federal sponsoring agency hIlS no
further need for the property. It shall be
declare~ el<cess and reported to the ""neral
Scrvlces Admlnlstrtloo. Appropriate dlspo"l-
tton Instructions wlll be Issued to the re-
cipient after completion of the Federal
agency review.
5. Exempt property.-When statutory aU-
thorIty eXists. (e.g., P.L. 8~934, 42 U..s.C.
1892) \.IlIe to nonel<pendable personal prop-
erty acquIred "'1th projcct funds. shall be
..esle:! In the recipient upoo acquisition un.
less It is de\..ermlned that to do SO Is not In
lurtherance of the objectIves of the Federal
sponsoring agenc)". Wben tllle Is veSLcd In
the reclplcnt. the recipient shall have no
othcr obllgatlon or accountability to the
Feder..l Government for lis use or disposi-
tion el<cept IL~ pro\'lded In 6a below.
6. Other noncxpe11l1able property.-When
othcr nonexpenduble tanGible personal prop-
ert)' Is acquired b)" a recipient wIth project
funds. title shall not be tnken by the F'e~-
~r.,1 C"rtlvernment bllt shl\1I ..est In th~ IT-
clplent "ubject to the followln/: conditIons:
a. Righi to transje" lillc.-For Items of
nonexpendable personal properly havlnl' l\
unit acquisition cost of :'1.000 or more, the
Federal sponsorIng agcnc)" mR)' reserve t.he
right to transfer the title La the Federal
- I
A-110:20
Government or to a third party named by
the }O~cdcrlll Government when f;uch third
p..rly Is otherwise elil'lhle under existIng
statutes. Such rcscrvatlon shall lJe subjecl to
the followlnr: standards:
(I) The prnpcrty shull be approprlat.ely
Identlfled In the granl or other agreement
or othcrwlse made known to the recIpient
in wrllln~.
(2) The Jo'cderal sponsoring n~enc)" 5hllll
Is..~ue dlsposlllon Inslructlons wllhln 120 cal.
eudnr dl\Ys alter the end of the Federal sup'
r><>rt of Ihe pruJect for which It was acquired.
II the Federall\ponsorlng Rgeney fnlls to Is.<ue
dlr,por.ltlon Instructions wllhln the 120 cal.
ellllar day perIod, the recIpient shall appl)"
lhc :;lnnd.uds oC 6ubpllrft.~nphs Gb nnd Gc
ns npproprla te.
(3) When the Federal sponsorinG aReney
exercises Its right to take tlllc, the personnl
proper I)' sh..1I be subject to the provisions
lor federally-owned nonel<pendable property
discussed In pnragTaph 4, above.
(4) When title Is trRnsferred ellher to the
FederRI Oovemment or to .. third party.the
provll\IOnS of l\ubparagraph llc(2) (b) should
l>c followed.
b. U..e 01 other tangoible noncxpc11l1able
property jor IDhich the recipicnt heu title.
(I) The recipient shall \1EoC t.he propert)"
In t.he project or progTlUn for whlcb 11 was
acquired 1lS'long as needed, whether or not
the project or progrR.m continues to be sup-
ported by Federal funds. Wben no longer
needed for the orlelnal proJect or program,
the recipIent shall use the property In con.
ncctlon with Its other federally sponsored
actlvltles. In the following order of prlorlt)":
(a) hctlvltles, In the following order of
priority:
(b) Activities sponsored by other Federal
acenclcs.
(2) Shared use.-Durlng the time that
noncl<empt nonexpendable perl<Onal proper-
t}. Is held for use on tbe project or program
for which It was acquired. t.he re<:lpleot
sball make It available for use on other proJ-
ects or programs If such other use will not
Interfere with the work on the p,',.!ect or
progra.m lor which t.he property"'..... origi-
nally acQuired. Flrst preference for such
other use 6hall be given to other prOjects or
pTOgrams sr><>nsored hy ,the PederRI agenc)"
that nnanced the property: IICcond prefer-
cn"" shall be given to projects or progTam.s
KpOnsored by other Federal aeencles. If the
property Is owned by the Pederal Govern.
ment, use on othcr Rctlvltlcs not sponsored
by the Pedernl Government shall be per-
ml!<Slble If authorized by the Feder..l agency.
User cha.rgcs should be cOD4ildered 11 appro-
prla\..e.
c. Disposition 01 other n.onexpe11l1~ble
property.-When the recipient no longer
needs the property IlS prOVided In 6b above,
the property may be u68d for other actl'/I-
tiCS In accordance with the follov.'lng stand.
nrds:
(I) Non.expend4blc property wilh a unit
acquisition cost ollcss tnan Sl.OOO.-TIle re-
cipient may use the property for other act1\'I-
tics "..1I.hout relmburllement to the Federal
Governmcnt or sell t.he property and re-
tain thc proceeds.
(2) None;rpcndable personal -propcrly with
a unil acquisition cosl 01 $I ,000 or morc.-
The recipient may retain thc property lor
other uses provIded that compcnsatlon 15
mnde to the original Federal sponsoring
a!;ency or It..< successor. The amount of com-
pel\=Uon shall be cC'lmputed by applying
the percent"'ge of F'roeml p!\TtI~lr":IOl1 In
tile cost of the origInal project or probrnm to
Lhe current fair markct value of the property.
If the rcclplent hns no need for the property
I\nd the properly hns further use val UC, the
recipIent shllll rC<l\lcst dispositIon Instruc-
Uuns from t.llc or1C1unJ sponsorlng nscncy.
-.,
I
Office of Management and Budget Circular A-110 (7/30/76)
The }"edef"l\1 spon.orlng agenc~' shall deter-
mine whether the property can be uHd to
meet the agency's requirements. If no re.
qulrement exist.. within th"t "gency. the
"v"llablllty 01 the property shall be report.
ed to the General Services Admlnlstnllon
by the Federal agen"y to determine ....hether a
requirement lor the property exist.. In other
Federal "gencle.. TIle Federal sponsoring
agency shnll Issue In.<tructlon" to the recipi-
ent no Inter than 120 day" alter the reclpl-
ent's requcst nnd the lollowlng procedures
shall govern:
(a) Il so Instructed Or If dl'po,ltlon In.
structlons are not I"",ed withIn 120 calen-
dnr dny' nIter the reclplcnt.. request, the
recipient shall ,ell the property alld relm.
burse the Fcdcnl "ponsorlng agene)' nn
nmount computed by applying to the ..les
proceeds the percelltage 01 Federal partici-
pation In the cost 01 the orIginal project or
pro.ram. However. the recipient shall be
permitted to deduct nnd retl\ln lrom the Fed-
eral shnre 1100 or ten percent 01 the pro-
ceeds. whichever Is grenter. lor the reclplent.s
selling nnd handllng expenses.
(b) Il the recIpient I' In,tructed to ship
the property elsewhere. the recipient shnll
be reimbursed by the benefiting Federal
agenc)' with an amount which Is computed
by applying the percentage 01 the reclplent's
participation In the cost 01 the origInal grnnt
project or program to the current lair market
value 01 the property, plus "ny relLsonable
shipping or Intenm stornge costs Incured.
(c) II the recIpient Is Instructed to other-
wise dispose of the property, the recIpient
"h..ll be reimbursed b)' the Federal sponsor-
Ing agency for ouch costs Incurred In Its
dl.'posltlon.
d. Properly maTlapemeTlI slandard. for
none:rpendable properly.-The ~eclplent.s
property m"nagement stand..rds for nonex.
pendable personal property shall Include the
following procedural requirements:
C I) Property records sh..1I be m..lntalned
..ccur..U,l)' and shall Include :
(a) A description 01 the property.
(b) ManullLCturer's serIal number, model
number, Federal stock number, natlonal
stock number, or other Identltlcatlon num-
ber.
(c) Source 01 the property, IncludIng
grant or other "!;Teement numl>er.
Cd) Whether title vests In the reCipient or
the Federal Government.
'(e) Acqulsltlon dale (or dl\te received. l!
the propert)' WB.5 furnished by the Feder..1
Government) ..nd C06t.
(f) Percentage (&t the end 01 the budget
yoa.r) of Feder&1 partlelp&tlon In the cost or
the project or pro!;'r..m lor whIch the prop-
orty ""as acquIred. (Not &ppllCable to prop-
ert)' furnished by the Federal Government.)
(g) LocatIon. use and conditIon 01 the
property and the d..te the Inlormatlon was
report&<!.
(h) Dnlt ncqu\O;ltlon cost.
(I) Dltlmnte dllposltlon dnL&. Including
date 01 dlspos&1 and ""Ies prlc. or the method
used 1.0 determIne current 18.1r market vLl\1e
where- .. reclpi~nt. compen~R.t.es the Federa.l
19onsorlng asency lor It.s share
(2) Property owned bv the Yedeal Gov-
ernm.nt muit be ma.rk~d to Indicate Yed.
era.l ownershIp.
(3) A physical Inventory of property sh..ll
be t..ken and the results reconciled ..dth the
property record5 Lt lea.,t once eVerv two
ye"rs. Any dlnerenc.. betwecn quantities de.
termlned by the physIcal Inspection and
thqse shown In the accountIng records .h..ll
be Investigated to determine the c..uses 01
the dlnerence. The recipient shall, In connee-
tlon wIth the Inventory, verll)' the existence,
current utilization. "nd cOlltlnued need for
the property.
(4) A control "l'stem ohl\lI be In e:hct to
In.ur~ adequate l8.h,t;unrd6 t..o pret'rn~ lQ"!!Ji,
damage. or theft of the proper!}'. Any ION,
d..mage. or thert of nonHprndable prop"ty
sh"ll be Illve,;tlgated nnd lull)' documented;
11 the property \OO'ns owned by the I"eder&)
Government. the rerlplent shall promptly nO-
till' the Federal sp.,n.orlng "gency.
(5) Adequately m..lntenance procedures
..hall be Implemented to keep the property
In good condItion.
(6) Where the rt'clplent I" authorlud or
reqUIred to sell the property, proper ...Ies
procedure.. shnll be estnbll..hed which wOllld
provide lor cornpetltlon to the extent practl.
cable and reslllt In tho hIghest possIble re-
turn.
7. Expendable per30nol properly.-Tltle to
expendable personal property shlLll vest In
the recipient upon "cqlllsltlon. II theu 'Is a
residual Inventory of such property exceedIng
~1.000 In totl\l aggregate 1"lr market vallie,
upon termlnl\tlon or completion or the gr..nt
or other ILgreement, and the property Is not
n.eeded lor any other lederally sponsored
projecL or progr..m, the recipient sh&1I retain
the property for u..e on nonlederally spon.
sorcd ..ctlvltles, or sell It. but must In either
. cnse. eompensnte the Federal Governrnent
lor Iu. share. The amount ot compens..Llon
sh&1l be computed In the same manner I\S
nonexpendable personl\l property.
8. Intariplble propcrly.
a. Invention. and palenl..-l! nny program
produces patentable Item._, patent rlght.<.
processes, or Inventions, In the course 01
work sponsored by the Federal Government,
such f..ct shlLll be promptly and lully report-
ed to the Federal sponsoring a!;'ency. Unles"
there Is .. prior ..greement bet""een the re-
cIpient ..nd the Federal sponsoring ..gency
on disposition 01 such Items. the Feder..l
spon50rlng ngency sh..1I determine whether
protection on the Invention or d1.9cover)' shl\ll
l>e BOught. The Federnl spon"orlng ..gency
wlll also determine how the rights In the In-
vention or discovery-Including rlghUl under
..ny p..u,nt l'LSUed thereon~hall be ..lIoc..ted
nnd a.dmlnl"tered In order to protect the pub-
Ile Interest consistent with "Government
p..tentPollcy" (presldent's Memorandum
for Heads 01 Executive Depnrtments ..nd
Agencies, August 23, 1971, and statement 01
Government p..tent Policy IL6 prInted 1n 36
F.R. 16889).
b. Copyriph.l. .-Exeept o.s otherwl.oo pro-
"Ided 10 the terms ..nd condltlons 01 tbe
agreement. the ..uthor or the recIpient organ-
IzatIOn 1s free to copyrl~ht ..ny books, pub-
llC..tlOlUi. or other coPy'-lghtable mu..rleJ_
developed In the cour... 01 or under.. Fod.
er..1 agreement. but the Pederal sponsoring
agency shall reserve .. ro)...lty-free. nanex.
cluslve and Irrevocable rIght to reproduce.
publlsh. or otherwIse use, and to authorl..
others to 1I.e, the work for Government pur-
pos....
ATrACHMJ:><T O.--CncULAI\ No. 1.-110
""OCU".NXH'T BTAHDAftD!I
L Thl" r.ttachment provIdes st..ndards lor
u.. by rec:plents In e.tabllehln. procedures
for the procurement 01 supplies. equipment.
construction ..nd other serTleea with Federal
lUllds. These standard, are lurnlshod to en.
sure thkt K\1ch mat.er,..!5: and servlCt1.. a.re ob-
ta.Jned 1n a.n e:JectlvC' m...nner And in com-
pll..nce with the provisions of ..pplle..ble Ted.
er..1 1 a...' and executive orders. No addItional
procuroment st"ndard.-s or requirements .h..11
be Imposed by the roderal sponsoring agen-
cies upon recipients unless .poclncl\lly r.-
Q\llred by I'"ederal stntuu, Or eucutl,'e orders.
2. The stand..rds contained In this ..t\.o.eh-
mont do not relleve the recipient 01 the con-
tr..ctu..l responsibilities ..rIsing under Its
contr..cu<. The recipient 15 the respon"-'ble &u.
thorltv. wIthout recourse to the rederal spon-
sorlnr.' ..gency regarding the settlement ..nd
aatlsr..ctlon or ..11 c.ontractuaj and ..dmlnu.-
.I
A-110:21
tratlve Inuet; arising out of procurements
entered Into. In IUpport 01 a grant or oth..
"I:reem.nt. This Inchldu disputes. cl..lm.'.
prott'~t.& of ""'nrd. K1\trot' .v,dufI,.llon or othrr
ml\tle.... 01 a contractual naturo. ).1"tt..... con.
ccrnln. vlolntlon 01 law M' to be relerred tOo
s\leh loe..l. Stale or Tederal authorIty... may
have proper turledletlOn.
3. RecipIents m..y u.e their own procure.
ment pollcles and proced\lrl\l. no....ever. all ro.
elplents shall ..dhero to tho stl\nd..rds set
lorth In parngr"phl 3 I\nd ~.
a. The recipient sh..lI ml\lntaln a code ar
stnndnrd., 01 conduct th"t _hall gOTern the
perlormnnce 01 I'" officers. emploYNls or
nr,ents enc..ced In the "warding nnd ndmln.
Istratlon 01 eontrl\cts ualng P'edernl lund,.
No employee. omeer or agent shn.lI pnrtlclpnte
In the .electlon. ..ward or ndmlnlstratlon 01
" contr..cL In whleh reder..1 lund..s ..TO used.
where, to his knowledge, he or his Immediate
lnmlly. partners. or or[:..nlzntlon In ....hlcl! he
or his Immedll\te ll\mlly or partner h.... a
nnanclal Inlere"t or ",'Ith whom he I" nego.
tl..lIng or hM ..ny ..rmngement concerning
pro"pectln employment. Tho recipients. of.
ncers. employee. or ngents .h,,1I neither sollc.
It nor aooept grntultl.... lnvors or nnythlng
01 monetMY value lrom cantrnctor" or poten-
tial contrnetors. ~uch standn.rds shnll provide
lor dlsclpllnory actIons to be ..pplled lor vlo.
lations 01 sllch stnndarc1s by the recipients'
omcers, employees or I\f:ents.
b. All procuremcnt kansncllons shl\!l be
conducted In a mann.... 10 provide. to the
.maxlmum extent practlc..!. open ..nd lree
compotltlon. The recIpient should be alert
to organlt...tlonn.1 conmcts of Int.-erest or nan-
oomp..U tlTe prnctlces among oon trI\Cto1ll
that may restnct <r. eUm1n"te competition
or ot'herwt.~ restre.ln tr..ae. In order to en.
sure obJecUTe contra.ct.or perlonnance and
ellmln..te. unlrUr competitive advanU\.ge. con.
trn.clx>r" that develop OIl drpJt spoclnca tJons.
requirements, 5'tnt.em~nbs of work. Invl1..a.
t100l! lor bids and/Of' requoots lor propos.a.ls
should be excluded lrom com.petlng lor sue-h
procuremenu.. Awnra. IIlh6l1 l>e made to the
blddeT/ol!erOf' whose bld/olT..- l.5 rcspon&lve
to tno .ollclt.s.tilon e.nd Ie In06t a.dva.nt.ageous
to tM recl~t, JX'lce ..nd other fnew", con-
sWered. 501lcll.&tlo,,. s.he.1I clear!)' set lorth
..U requll"Cmenta thn! the bidder /o!l'~r must
fuIJ'l1l In order for hll5 btd/o!l'er to be e....lu-
..ted by bho r...lplent. Any ..nd all bld.3/olTers
m"y be reJeot.ed when 1t Is In the ro<:lp1ent.s
InlAr..t to do 10.
c. All reclpl~nt,., lOhall ...t...bllsh procure-
"'" n t procechJres th&t proTIdV for, a t a uUn-
Imum. the followl"l> J"l:'OCCduro.!Tequlrem.ents.
(I) Proposed pr~rcment ....tlo)'" shall
folio'" a proee-duro to ..",urc tho avoidance
af purcllMlng unnecesao.ry or Ch1pllcatln
ItAms. "'bere a.pJX'opM6M. an ..n..IY'Ol<l .hall
b. ......0.0 01 Ie...... ..nd purch...."". "lteTnn.tj,.cs
Ix> detArmlno wh~h ..."Ould b. the moot
oconomJca.l. p<'act\ca.1 pr~ment.
(2) 6ollclbatlON lOll ~ood<I and services
.hall b. 'b<ued upon .. cleo.r and aceur..te
d...enptlOn 01 llhe \eohnte..l requJrom.ent,.,
fCT th. m..'-l..l. prod.xot or ~Ice to be
procured. Such .. d.....rl?\.\on shall not. In
cOm.p<lt.ltITe pTO<luremenu. cont&ln lee.turH
",hlch unduly r...tnct com.p.tltlon. "Brand
n..m. or .QUAI" descriptions m<lY be used
M & mel\n& to ~nn. the perlorma.not' 0:-
other ..allrnt 7.qulrern~nb 0:' p. procuremtnt,
..nd when a.o \l#llliO'd, the- sp.elfi<: leA.tures 0: the
nl\m.a bn.nd ....h.1ch must be met by bldd.ro!
onerors sho..ll be cle<U'll "I'K.1ned.
(31 PosltlTe enorts "hl\l1 be mMle by the
reclplent.< to utlllze small buslneM ""d rnJ-
norlt."....owned. buslneu sources of !oupol1el
and ;onloel. Such eno~ should allo..- the...
SoOurc.. the ml\xlmum f......lble opportunIty
to eompo\.e lor contrae.. utll\T.ln. }"ader..1
lun6&.
(4) TI,. tn>e of procurln~ IlUtnlm.nta
,,,cd. ..~.. llxed prlco oontracts. ooet ro\n'l-
; .
I
Office of Management and Budget Circular A-110 (7/30/76)
bur"",!>le oontrac.Ls. purchll.SC orders. Incen-
tIve contrnct.'. shall be det.crmlned by U'e
rt'Clplent but must be Ilpproprlate for the
pRrtlO\l!ar procuroment R.ud for pT()nv.t! nr,
the best InterllGt of the prormm In\'oh'ed.
The "cost_plu.3-a-perccnl.,,!;e-o/-C06t" meW1'
od of contTl\oCtlng shall not be used.
(5) Contrl\oCt.' shnl be nuult only with re-
sponsIble contrl\oCWTS who PU.s.ct;6 the po.
tentlonlu null I t}' to perform succe.;.o;fully
under the tem1-' end oondltlons of /I pro.
posed procurement. Conslderntlon shnJI be
glyen to such /llAtter6 8.5 cont.m.cWr InteJ;Tlty,
rcoord of past performance, financlnJ /lnd
lCChnlonl resources or n.cce.;..;jblllty lo oUler
nccess.n.ry rCSOU:"T.cS.
(G) All proposed sole source contract., or
""here only one hid or IlT'OfXY.illl Is rcccl\'ed
In whioll the llf;gregnte ex.pendlture Is ex.
pc<:t.cd toO exceed 1.5,000 shllll be subject \.0
prior approvn! llt the dlscretl'ln of Ule Fed-
ernJ sponsorlnr, ~enC)'.
(7) Some lorm of price .01" COGt llllah'sls
should be made In connecLlon with e~ery
procurement I\oCWon. Price annlyslG mAl' be
lLCcompIL,..hcd In \'llrloU6 wny.;. Includlnr the
comparl50n of price quotnUons submitted,
mnrket prices Ilnd slmllnr Indlcln, lorethtr
wlt.h d!:;oounts. Coc,t nnnh'6ls Is the re\'lew
and evalu"tlon of each eiemcnl. 01 co,,"'t to
del.cnnlne ronson"bJencss, alloca.bl II t\' and
allowl\blllty. .
(6) Procurement recoTdti a.nd files for pur.
cho.ses In eJCCeSS 01 1-10.000 &hall Include tlle
101l0v..'ilf1S:
(a) Basis lor contractor selectIon:
(b) JusLlficatlon for lack of competition
v:hcn competitive bids or oUen; are not
obu.lned;
(c) Ba..sls for award coot or price.
(9) A system for contract- a.dnunlstmtlon
sho.ll be mAlnt.lLJned to ensurc contractor
conformance wIth terms, condItions and
specIficatIons of the cont~t, and to ensure
e.Oequ~u; and timely followup o! s..ll pur-
chases .
{. The recLplcnt shall Include, In addition
to proVIsions to define a sound nnd com.plete
'ab'"eement, the follOWing pro\'1SIO!1l; In all
contracts. These provIsIons shall aJso be ap:
piled to sul>contr"ct.s.
s. Cont.rn.cts In excess of HO.OOO shRlI con.
taln contrACtUAl pro \'1S 10 ns or cond~IJons
Ulllt wll! . ilo"" tor a.ctm.JnlGtrntl\'C, contrnc-
~"n.l or leg...1 1'Ome<lJe:s In lnst.n.nces In "lllch
contre.ctors vlol..te or bTellch contract tenns
nnd provide for such remedial actIons ..;
rruy be appropriate.
b. All contrnets In exccs.; of loIO.OOO shnl!
conooln sult.c.ble prov!."lons for t.c:-mJnp.t1on
by t.."e reclplentlncludlng Ule mnnne:' b\'
"'hlch termlnat.lon wIll be eITect.cd and lh~
bAsts Jor settle.mcnt. In addition, such con.
tl"&Cts shnll descrIbe condlLlons under ,,'hleh
the oontrn.ct may be tennlnntcd for default
R-; weU M ooJH..Iltlons WhCT(, the C'ontrfLCt. nlay
l)l' t,rrrnlnfitcd b<"CtL.U~(' of clrc\ll1l...~l.6\.nccs l>c-
yond the r..ontrol of U1C con t.:rac LOr .
c. In ail ront-fRcts fOT con!'.tructlon or fa.
cllity llnpro\'cnlCJlt. R\I,:a.rded for Inorc Lhnn
~I()O,OOU. recipients shnll ol>5c.-ve t.he bond.
ing rcqulrclnrnt.s pro\"ldcd In At.Lclcluncnl 13
\.0 thIs circular.
d. All conlrlK't.~ awarded by reclpl<,nt.' and
their oontrRC\.or; or subF.7"ntees h"vlng a
value of lTIore thnn $10.000, shn.1l eonl..ln /I
provision requlr111j; C'Ompllanc.c \\1\.11 Exccu.
Ll,'e Order 1124G, entitled "Equal Employ-
ment Opportunity," n~ amellded by Executlye
Order 11375, and ns supplemented In Depart.
",<'nt of Lnbor rcgulatloll" (41 CPR, Pn.rt GO).
e. All contract.s and su\)~mnt.' In cxcess of
~.2,OOO for construction or repair nwarded hy
reclpicnt.' and 5ubreclplcn.t., shall Include"
provIsion for compliance with the Copeland
"AnLl-Klek Back" Act (16 U.S.C. 674) as
supplemented In Department of Labor
re~ull\tlons (29 CFR, Pl\rt 3), ThIs Act pro.
vldes that each contractor or subgralltee
shall be prohibited from InducIng. by I\ny
means, an~' person employcd In the con,;truc.
LIon. completion. or rep"lr of public work, to
gl ve up /In)' p"rt of the compensnLlon to
",'hlch he Is otherv,'lse entitled. The recipient
sh,,1I report .'.11 suspected or reported vlol,,-
tlons to the Federal ~ponsorlllg agency.
1. When required by the Fedcral pror,rnm
legislation, all construcLlon contracts
a....nrded b)' the reclplenLs and subreclplents
of more than f.2.000 shall Include a pro\'lslon
for cornpllance ....Ith the Davis-Bacon Act (40
U.S.C. 27610 to ..-7) and ns supplemen'l.ed by
nepartment of Labor regulations (29 CPR.
Part 5). Under this Act contractors shall be
require<! to pay v,'agcs to laborers and me.
chanlcs at a rate not less than the minimum
v,'ages specified III a wagc determlnstlon made
by ,the Seeret&ry of Labor. In addItion, con.
tractors shall be required to pay wages not
less than once" weelt.. The recipient shall
place a copy of the curren t pre,'alllng wl\ge
determination Issued by the Department of
Labor In each solicitation and the award
of " contract shall be condl.t\oned upon the
acceptance of the ....abe determination. The
recIpIent shall report all suspected or re-
ported viola LIons to the Federal sponsorIng
agency.
1;. Where appllcable. nil contracts av,'fIrded
by recIpients In excess of !.2.000 for construc.
tlon con"tract.."i nnd 1n e>.:ceES of !'.:!.500 10r
other contracts that In,"olve the employment
of mechanics or laborers. shall Include a pro-
vIsIon for compllllnce \\'Ith sections 103 and
107 of the ContTl\et Work Hours and Safetv
Standl\rds Act (40 U.S.C. 32i-330) as sup"-
plcmented b)' OeparLmen.t of Labor regula-
.I
A-110:22
tin'\" (29 CFR, Part 5), Under section J03
of the Act. ench conlrnclor sha.11 be re.'.
q\ltr~d to (,Cllllpulc the wngcs of evcry )11(>-
chnl1lc and In.t>urer 011 the basis o! n standord
\,;.fork c1ny or P. hn\l~ nnd n r.Lal\ollrd wurk
week of 40 hOllrs. Work III excess of lhe
st.andnrd .......orkdny or wor~:w('~k 1~ prrrllis.sllJlc
pro\'ltled tiltH the w(lrkcr Is cOlnpCIl~ntcc1 nt n
rnle of not Jess thnn I1f:z Urnes the unslc
ratr- of pay for nil hours wortcd ill r.xcc~~
or B hours in nny cnlcndRT dny or 40 hours
In t.he workweek. Section 107 of the Act Is
nppllcnblr Lo f'on."ilr\lcl1on work Ilnd provJd{'s
ll1nl no Inborcr or nlcchnnic shnl1 be Tcq\lir('d
lo w()r.~ III surroundinG!; or tinder \\'orklng
condlt.lons whkh nre \Illsnlllt.nry, hnzardo\l:;
or dnnl~rro1l5 t.o hJs h('nlth nnn Rn'("ly lLC; de.
ll'rJlllllC'd unrJer COI)Slrllc.t.Ioll sn'('l~' Ilnd
henllh :;lnnd:Hd~ JHonH1tgn\.('d lJy the Sr.-err.
tnry of Lnoor. Thcl'ic rcrpllrcI1H'I1l.:.; do ')ot
nppl)' to lhe purchn..."ics of S\lrJlllc~ or nlntr:.
rials or nrtlr.les orc1innrlly nVh.llnblc 011 lhe
open lnnrkrl. or conlrncts for lflul!"porlntlon
or lral1~n)ls..c;lon of Intrlllb"'CflcC.
h. Conlrncl.."i or nt&CCmcnL.... the prlnc1pnl
jlurpo:;r of. whlell 1.0; 1.0 crente. de\'clop or 1111.
prove products. proec:,scs or n"lel.hod!.;; or for
explor"Uon Into Ilelds thl\t dlrccLly COllcern
pllbllc health, sl\fety or welfl\re: or cOlltrllcts
III the field of science or lechnology Il1 which
thcre hl\s beell Iltt.le<.oI:nlflcont experlcnce
ollt.,lde of work funded by Federn! n.'>.S15t-
ance, ~hl\ll conl"ln " noLlce to the eUcct ,thnt
mnttcrs res-nrdlnr; rlght.$ to Invcntlons nnd
mllterll\l' generated under the contrnct or
a~recment arc ""bJect to the regullltlon5 Is.
511ed by the Fedcrnl 5ponsorlnr ngency nnd
thc recIpient. The COlltrn<:tor shl\l! be ad.
\'Ic.ed as to the source of addItional Informa-
tIon l"Cr"rdlng the5e mntt.eTS.
I. AI! negoLlated eontrl\Ots (except those
of ~IO,OOO or less) nv,'",ded by recipient.'
~hnll Include R provision to the eITeet. thnt
t.he recIpient-. the Federal spoll.'orlng nr,enc,.
the Comptroller General of the UnIted States.
or n.n, 0: tthelr duly author17.cd rcprescl1tn-
LI"es. shall have acce.... to any book5. docu.
ments, papers and records of thc contractor
\\'hlch are directly pertInent to s 6peclfic pro.
!;ram for the purpose of making audits,
ex"mlnatlons, execrp!., and transcrIptions.
J. Contracts and subgrnnts of amonnLs In
excess of ~100,000 sllall contain a provisIon
that requires the recipient to ,,!:ree to com-
ply v,'lth all applicable standards. orders or
rCJ;ulatlon5 15.Sued pursul\n\. to the Ctcl\r All"
Act of : P70 (42 U .3.C. 1857 et sr.c;.) and thc
Federa! W",t.cr Pollution Contr"l ,'>ct (33
U.S.C. 1251 et seq.) llS amended. Vlnlntlons
shl\lI be reported to the Federal s~llsorlng
I\~ency and the Regional €lIDce of the En.
\'Ironment"l Prot.ectlon Agency. .
IFR 001".76-21904 FlIed 7-29-76:6:45 ami
I
'." lit_
APPENDIX H
OMB
Circular A-I22
.I
.
, >
,
t
Office of Management and Budget Circular A-122 (6/27 ISO)
Of ACE OF MAWAGEMENT AND
BUDGET
Ch:olar A-122, "Cost Principles tor
Nonprofit Organizations"
AGENCY: Office of Management and
nudCel.
ACTION: Final Policy.
June 27, l!IUO
To The Heads of Executive
Departmcr.ts and Establishments
Subject: Cost principles for nonprofit
organiza tions. .
1. Purpose. This Circular estaLIi:;hes
principles for determining costs of
grants. contrn::ts lInd oliler llgfl~ements
with nonprofit organiza tions. II does not
apply to colleges ar.d universities which
are covered by Circular A-Zr. Stnte,
local, llIld kdcrn lly :-ccognized Indian
tribal governmc>nts which are covered
by Circular 74-4; 01' hos?illJls. The
principles are designed to provide that
the Federal Government bear iis fair
share of costs cxceot where restriGled or
prohibited by law. The principles do not
a lIemptto prescribe"the extent of cost
shur::og or matching on'grants. contracts,
or othe: afjreemel:ts. However, such cost
sharing or ma tching shall not be
accomplished through arbitrary
limitations on indi\'idual cosl elements
by Fede.al agencies. Provision for profit
or other increment above cost is outside
Ihe scope of this Circular.
2. SL'persession. This Circular
l'upersedcs cost principl.::s issued by
inui vidual agencies for non'proflt
organization.
3. Applicability. a. These principles
shall be used by all Federal agencies in
determining the .costs of work performed
by nonprofit orgAniza lions under grnnls,
coopera tive agreements. cost
reimbur:;ement con Ira cIs. and other
contracts in which costs are used in
p.ir.\ng. administration. or s~ttlemenl.
All of these instruments are Derea fler
referred to as awards. The principles do
not apply to awards under which an
organization is not required to account
tu the Government for actual costs
incurred.
L. All cost reimbursement subuwanls
(subgronts, subcontracts. etc.) are
subjeclto those Federal cosl principles
applicable to the particular orga"izatiun
concerned. Thus, if a subaward is 10 a
nonprofit organization, this Circulu
.shall apply; if a" subaward is to a
commercial organiza tion, the cost
principles applicable to commercial
ccncerns shall apply; if a subaward is to
R college or unil'ersity, Circulur A-21
shall Rpplv: if a s\lhl\\'nrd is tn R SlatP-.
locllI.'or fedefla1Iyreod~i.7..ed tndlllni
tribal government, GirculllJ' 7H shiH!
apply.
4. Definitions. a. "Nonprofit
organization" means any corporation,
trust. IP.lsocia tion. coopera live. or other
organization whi"c:h (1) is operated
primarily for scfentific, educational.
service, charitable, or similar purposes
in the public interest; (2) is not
organized primarily for profit; and (3)
uses its net proceeds.to maintain.
Improve, andlor expand its opera tions,
For this purpose, the term "nonprofit
organization" excludes (i) colleges and
universities; (ii) hospitals; (iii) State,
local. and federally recognized Indian
tribal governments: and (iv) those
nonprofit organizations which arc .
exclmlcd from coverage of this Circular
in accordllnce with paragraph 5 below.
b. "Prior approval" means secu:-ing
the awarding agency's pc:rmission in
advance to incur cost for those items
that are designated as requiring prior
approval by the Circular. Generally this
permission will be in writing. Where un
item (If cost rl'q'Jiring prior approval is
spet:ified in the budget of an.award.
approval of the budget const'itutes
approval cI t~at cosl.
5. Exc:;/usioll of some nonprofit
organizations. Some nonprofit
organizations, because of their size and
nature of operations, can be considered
to be similar to commercial concerns for
purpose of applica bility of tost
principles. Such nonprofit organizations
shall operate under Federal cost
principles applicable to commercial
concerns. A listing of these
organizations is colltained.in.
Attachment C. Other organizaUons may
be added from lime to time.
6. Responsibijitiefi. Agencies
responsible for adminislering programs
that involve awards 10 nonprofit
organizations sball implement the
provisions of this Circular. Upon
request. implementing instruction shall
be furnisbed to the Office of
Management ~.ld Budget. Agencies &ball
designale a liaison official 10 serve 85
the agency representalive on matters
relating to lhe implementation of this
Circular. The name and title of such
representative shall be furnished to tbe
Office of Management and Budget
within 30 days of the date of this
Circular.
7. Attachments. The principles and
relaLedpolicy guides are set forth in the
follo.....'ing Attachmenls:
Attachment A--General Principles
Attachment B-Selecled Hems of Cosl
Attachment C-Nonprofit
OrganizaliollS Not Subject !J1 This
Circular
- I
A-122:1
8. Requests for exceptiollS. The OUice
of Management aDd Budget ma~' grant
exceptions Lo the requirements of this
Circular when permissible undr.r
existing law. However. in the interest of
achieving maximum unifomlity,
exceptions will be permitted only in
highly unusual circumstances.
9. Effective Date. The provisions of
this Circular Bre effective immediately.
Implemcntation sholl be phased in by
incorporaLing the provisions into new
a wards made after the start of the
organization's next fiscal year. For
existi~ awards the new principles may
be applied if an organiza tion and the
cognizant Federal agency agree. Earlier
imp"1cmentation. or a delay in
implemeolation of individual ProTI5ions
is also pcrmilled by mutual agreement
between ;In' organiza tion and the
cognizant Federal agenc)'.
10. Inquiries. Further information
concerning this Circular may be
obtained by contacting the Financial
Management Branch. Budget Review
Division, Office of Management and
Budget. Washington, D.C. 20503.
telephone (202) 39~773. -
James T. Mclnlyre, Jr..
Director.
[Circular No. A-l22]
AlIachment A
General Principles
TobIe of Contents
A. Basic Considerations
1. Composition of lotal cosls
2. Factors affecting allow ability of costs
3. Reasonable costs
4. Allocable costs
5. Applica ble credits
G. Advance understandings
B. Direct Costs
C. Indirecl Costs. '\
D. Allocation of Indirecl Costs and
Determination of Indirect Cosl Rale;
1. Genp.ral
2. Simplified allocation method
3. Mulliple allocation base method
4. Direct a!\ocation melhod
5. Special indirect cost Tales
E. Negotiation and Approval of Indirect Cost
Rates
1. Definitions
2. Negotiations and approval [If rates
[Circular No. A-122]
Attachment A
Ger;eral Principl':ls
A. [Josie Considerotions.
1. Composition of total costs. The tolal cost
of an award is the 6um of (he allowable
direct end ellocable indirect costs less any
applicable credils.
2. Factors o.((ecting c!/Ol<'obilily of (;0515.
. -,
I
Office of Management and Budget Circular A-122 (6/27/80)
To be allowable \IDder an aWilrd, costs lTro~1
m~t the following general criteria:
a. Be re8sonable for the performance of the
award and be aUocable thereto under these
principles.
b. Conform 10 aD}' limitalions or exclusions
set forth in these principles or in the aWllrd
as to Iypes or amoti~1 of coslilems.
c. Be coilsislel).t wjth policics and
procedures that apply uniformly 10 both
federally financed and other activities of the
organization.
d. Be accorded consistent treatment.
e. Be determined in accordance wIth
generally accepted accounting principles.
f. Not be included os a cost or used to meet
cost sharing or matching niquircmonts (If any
other federally financed program in either the
currenl or nprior period.
g. Be a6~quately docuITlCnted.
3. Reasunable cosLs. A cosl is reasonuble
if. in its nature or amount. i(does not exceed
that which would be Incur~ed hy.a prcdent
person under the circumstRnces prevaning at
the timc tbe decision wa5 made to incur the
costs. The question of the reasonableness.of
specific costs must be scrutinized with
particular care in connectilm with
organizations or separate di\'isions thereof
which receive the preponderance of their
support from awards made. by Fede'ral
agen'cies. In determining the reasonableness
of a given cost, consideralicn shall be given
to:
a. Whether the cost is of a type generally
recognized as ordinary and necessary for the
operation of the organization or the
performance of the award.
b. The restraints or rerjuirements imposed
by such factors as generally accepted sound
business practiccs, arms 1'ell8th bargaining.
Federal and State laws and regulations, and
terms and conditions of the award.
c, Whether the indivldeals'concerned acted
with prudence in the circumstances,
considering their responslbililies to the
organization. its members, employees, and
clients, the public at large, nnd the
Government.
d. Significant deviations from the
eslablis.hed practices of the orgJnization
which may unjustifiably increase the award
costs.
4. Allocable casu.
a. A cost is allocable \0 a particular cosl
objective. su>:h as a grant. project. service. or
other activity, in accordance with the relalive
benefits received. Acost is allocable 10 a
Government award if il is treated
consistently with other costs incur:-cd for the
same purpose in like circumstances and if i.t;
(1) )s inculTed specil'icallv for the award.
(2) Benefits both the awa'rd and other work
aOld can be distributed in reasonable
proportion to the benefi ts received.
(3) Is neccssary 10 the overall operation of
the organization. although a direct
relationship to any particular cost objective
cannot be shown.
b. Any cost allocable to a particular award
or olher cost objective under these prinr.iples
may not be shifted to other Federal aW'lrds to
overcome funding deficiencies. or to avoid
restrictions imposed by law or by the terms
of ihe award.
5. Applicable crediL~.
a. The term applicable credits rclers to
those receipts. or reduction of expendilllres
which opera te \0 oresct or reduce expanses
items that are allocable \0 awards as direct
or indirecl cosll. Typical examples of such
tran!actions are: purchase discounts, rebates
or allowances, recoveries or indemnilies on
losses, insurl!nce refund., and adjustments of
overpa~'ments or erroneous charges. To tile
extent Iha\ such credits accruing or received
by the organization relate to allowable cost
they shall be credited 10 the Goveromcnt
either as a cost reduction or cash refund os.
a ppropri ate.
b. In some instances, the amounts received
form the Federal Covernment to finance
organizational activities or service operations
should be trcated as applicable credits.
Specifically, the concept of netting such
credit items against related expenditures
should be applied by the organizalon in
determing the rn tes or amounts ICl be
organizal!on in determining the rates or
a rnaounts to be charged to Federal awards
for services Tendered whenever the facilities
or other resources used in providing such
. aervices have been financeu directly, in
whole or in part, by Federal funds:
a(c) For rules covering program income
(Le., gross income earned frolll federally
supported activities) see Attachment D of
OMB Circular A-ll0.
6. Advance and understandings. Under ;II1Y
given"award the reasonableness and
allocability of certain items of costs may be
difficult 10 determine. Tms particularly true in
conoection with orgiLBtio~ that receive a
preponderance of their support from Fedcrul
agencies. In .order to avoid subsequant
disallowance'or dilpule based on
unreasonablenes.s or nonalloeabilily, it is
often desirable 10 seek a wril\eil agreement
with the cognizant or owarding 'alleric~; in
advance of the incurrence of special or
unusal cosls. The absence of an advance
a!2Teement on any element of cost will not, in
itself. affecllhe reasonableness or
aliocabilily of that element.
B. Direct Cosls
1. Direct costs are those that can be
identified specifiea!!y wHh a particular fi:1al
cost objc:ctive: Le.. a particular award.
project, service. or other direct activity of an
crg;mizlltion. However, a cost may not be
assiQned to an award as a direct cost if anv
oih~r cost incurred for the same purpose, i~
like circumstance, has been alloea ted to an
award al an indirect cost. Cosl identified
s;:<!ciflcally with Rwards are direct cost of the
l! wards l!nd are 10 be assigned directly
thereto. Cesl identified specifica liy with other
final cost objectives of the organization are
direct costs of those cost objectives and are
nol 10 be assigned to other Rwards directly or
indirectly.
2. !,ny direct cost of a minor.emount m~y
be treated as an indirect CO$t ofar reasons tlf
pruclica!ily where the accollnttrcalmen: for
such cost is consislently applied to all fin~1
cost objecti\'es.
3. The cosl of certain acti\'ilies ore not
allowable 61 charges to Fedelal awards [sec.
for example. fund raising costs in parilgr:Jph
.1
A-122:2
21 of I\llochment B). However. even though
these costl are unallowable for purposes of
computing chargcs to Federal awards. they
nonelheless must he trealed R8 direct cost for
purpose. of determining indirect cost ra tes
and be allocated their s}llH(~ of the
organization'. indirecl COlts if they represenl
octi\'itieswhich (1) include the SAlaries of
personnel. (2) occupy sp~ce, and (3) benefit
from the organization's indirect costs.
4. The costs of activilies performed
primarily as a service to members. clients, or
Ihe general public when significnnt and
necessary to the organizalion's mission mllst
be leea ted as direcl costs when or not
ollO\~'uble and be allocllted an equltahle
share of indirect costs. Some eXAmples of
these types of activities include:
8. Maintenuoce of membership rolls,
sllbs.criptions, publications. ond rel~ted
fllndions.
b. Providing services and informatinn to
members, legislative or administrative
bodics, or the public.
C:. Promotion. lobbying. and other forms of
pubiic rclatiom.
d. Meetings and conferences except those
held to condllctlhe general administrHtion of
the organiza lion.
3. J\lninlenacne. protection, and investment
of ~pecial funds not used in operation of the
orgunizalion,
f. Administration of group benefits on
bchelf of members of clients includi:1g life
.and hospital insurance, annuity or retirement
plans, financial aid. etc.
C Indirect CosL
1. Indirect cosls are those that have been
incurred for common or joi:1t objectives and
cannot lie rei\dily. identified with a particular
finill wst objective. Direct C.:Jst of minor
amounts may be trealed as indirect costs
under thi! clJl1ditiol16 described in paragraph
B.2. aoo\'e. After direct costs ha ve been
dclermillrd and assigned directly 10 awards
or Clther work as appropria te. indirect costs
lire those rem;;jning to be allocated to
bellcfiting co~. objectives. A cosl m~.y not he
allocated to an award as an indirect cosl if
ClIIY othp.r cosl incurretl for the iarne purposc,
in like circumstances. .has been aS8ig~ed to
an ..,,:ard as a direct cost. 1
2. Because of the diverse characteristics
and accounting practices of nonprofit
c.ganiza tions. it is not possible 10 specify the
tyPp.s of cost which may be classified liS
indirect cost in all situation. Howe\'er. typical
examples of indirect cost for many nonprofit
organiza tiClns may include depreciation or
use allowance..s or. buildings and equipment,
the cosls of oper"ting and maintaining
filcilities, and general Rdmioistralion and
g('ue,al cxpenses. sllch as the salaries and
expenses of executive officers. personncl
odrr.inistralion. and accounting.
D. AJlncolion of Indirec( Cost and
Drtermi:lOlion of Indirect Cost Rulf's.
1. General.
a. Where a nonprofit or!?anization has only
one rr.lijllr function. or w:,ere ail its major
functions Lendit frum its indirect costs to
approximately the snme degrl'e. the
,dlClcnlion of indi:cct costs Hnd the
.'
I
Office of Management and Budget Circular A-122 (6/27/80)
computa lion of an indirect cost rR Ie &ItY be
accomplished through simplified alloallion
procedures lIS doscribed in paragraph 2
below,
b. Whcre an organization haa scveral major
functions which bcnefil from ils indircct costs
in varying dcgrces. alloclltion of indirect
costs may require !he accumulation ofauch
costs Into separalc cost groupings which thcn
are allocated individually to bencfiting
funclions bv mcans of a base which bcst
mca8ures the rr:lative decrec of benefit. The
indirecl costs ..llocaled to cach function are
thr.n distributed 10 intlividual awards and
other activities included in that dunction by
means of an indirect COil raters).
c. The determination of what constitutes on
organization's major functions will depend on
its purpose in being: the types of set".'ices it
renders to the public. its clicnl6. ond its
members: ond the amollnt of errorl It dcvotcs
to such activities 08 fund raising. public
inlormation and membership activities.
d. Specific methods for allocating indirect
costs and computing indirect cost roles olong
wilh the conditions under which each method
should be used are described in paragraphs 2
through 5 below.
e. The base pcriod for the allocotion of
indirec.1 costs is the period in which such
costs are incurred and lIccumulated for
allocation wo work perlormed in that period.
The base period normally ahould coincide
with the organiza tion's fiscal year. but in any
evnt. shall be so selected as to avoid
Inequities in the allocation of the costs.
2. Simplified allacotion method.
a. Where an organization's major functions
bendit from ils indirect costs to
approx.imatelythe same degre. the ll!location
of indirect costs may be acco:nplished by (i)
separating the organization's total cosls for
the bs~e period as ellher direct or indirect.
"nd (ii) dh'iding the total allowable indirect
cnsts (net of appiir:able credits) by an
equitable distribution base. The result of this
process is an indirect cost rate which is used
to distribute indirect costs 10 individual
a ".arcs. The rB Ie should be expressed as the
percentage which the total amount of
allowable indirect costs bears to the base
selected. This method should alos be used
where an organization has only one major
function encompassing a number of
individual proje"ts or IIcti\'ities. and may be
used where the level of Federal awards to un
organizotinn is relatively small.
b. bolh the diroct cosls anrlthe indirect
ccsts shall exclude capit,,1 expenditures and
unallowable costs. I iowever. unaliewRble
costs which represent activllies must be
included in the direct costs under the
conditions described in paragraph B.3. above.
c. The distribution base ma)' be tolal direct
costs (excluding capital expcnditures and
other distorting items, such liS major
subconlracts cr s:Jbbrar.t~). direcl salaries
and wuges. or other base which results in an
equitable distribution. The distribution base
shall generally exclude plI;tidpant auport
cosL' as defined in paragraph 211 of
Allar:hOlent B.
d. E~ce~'t whcre a sjJecia! ra;e(s) i;;
rrquirr.d in accordance with paragraph 0.5
below. the .indirer:t.CQlIt rA Ie ~..r..loped.....der
the above princ,iplr.,~' 8nPliCllIJ\c.lD all
a word, lltthe <HIlani:Llllion..u a special
rate(sl ~ required.aPPT'Jpriale modiIiCKtiolU
shall be made in order tD develop ~he special
ratels).
3. Multiple allocation base method.
a. VI'hcre an Ol'Fanization', indirect costs
benefit il8 majorlunctions in varying degrees.
such cosls shall be accumulaled inlo separate
cost groupings. Each grouping shall then be
allocated individually to benefillng functiona
bv means 01 a base which uest measures the
r~lative benefits.
b. The groupings shall be eslaullshed so 88
to permit the allocalion of each grouringon
the basis of benefits provided to the major
functions. Each groupilll; should constitute a
pool of expcnses that ore of like charocte....in
terms oflhe fllnr:tions Ihey henefitnnd in
tcrllls ulthe ullocnliun hUH" whll~I I..,st
measurs the relative bencfils pro\'idd to each
function. The number of separste groupings
should be held within practical limits. taking
into considerlltKlD the materiality of the
amounts im'olved and the degree of precision
desired.
c. Actual conditions must be taken inlo
account in selecting the base to be used in
allocating the ex.penses in !lach grouping to
benefiting functions. When an allocation can
be mede by assignment of a cosl grollping
directly to the function benefited, the
allocation shall be made in that manner.
When the expenses in a grouping are more
general in nature. the allocation should be
made through the use of a selected base
which produces results that are equitable to
both the Government and the organization. In
general. any cost element or cost related
factor associated with the organization's
work is potentially adaplable for use 6S an
allocation base provided 1i) it can readily be
expressed in terms of dollars or other
quantitative measures [total direct costs.
direct salaries and wagtls. staff hours applied.
square feet used. hours of usage, number of
documents processed. popula lion served. and
the like) and (ii) it is common to the
benefiting lunctions during the base period.
d. Except where a speciBI indirect cost
rale(s) is required in accordance with
paragraph 0.5. below. the sepo.rate groupinga
of indirect costs allocated to each major
function sholl be agrr.gated and treated as a
common pool for Ihat function. The costs in
the common pool shall then be distributed 10
indi\'isual awars included In that function by
use of a single indirect cost rate.
e. The distribution base used in computing
tI,e indirect cost rate lor each function Olav
be total dirp.ct costs lexcluding capital .
c:penciitures and olher distorting ilems such
us major subcon1racts and subgrants). direct
salaries and wages. or other ase which
results in an equitable distribution. The
distribution base shall generally exclude
participant support cosls as defined in
pllragraph 29. Allachment B. An indirect cost
ra te should be developp.d fir each sr.para te
indirect cost pool developed. The rate in each
case should be stated as the percentage
which the amoun1 of the particular indirect
cosl pool is of the distribution base identified
. I
A-122:3
with that ~
~. Direct allocation method.
a. Some rnlDprofil organizations. treal all
costs as direct costs expect general
administration and general e)(penses. These
organizations senerally sepllrale their costs
inlo thre basic categoriea: (i) General
administration and general expenses. (ii)
fund raising. and (iii) other direct functions
(including projects performed under Federal
awards). Joint costs. such as deprecia tion.
rental costs. opera lion and maintenance of
fncilities. telephone expenses. and lhe like
ere proreted indivisually as direct cost to
ench category and to each award. or clher
activity usinS a base most appropriate to the
particular cosl being prorated.
b. This method is acceptable provided each
joint co.st is prorated using a base which
nCCllrntclv mensmes the hcncfj,~ provided 10
cllch nWII'rd or other IIctlvlll'. Tho t"'H"" I1l1'tll
be cstablished in accordan~e with resonable
criteria, and be supported by current dala.
This mcthod is compatible with the
Standards of Accounting and Financial
Reporting for Voluntary Health and Welfare
Organizalions issued jointly by the National
Health Council. Inc.. the National Assembly
of Volunlarv Health and Social Welfare
Organizati~ns. and the United Way of
America.
c. Und(:r this method. indirect cosls consist
eclusively 01 gcneral administrlition and
gcnernl expenses. In all other respects. the
organization's indirect Cosl ratess shal be
computed in the same manner as that
described in paragraph 0.2 above.
5: Special indirect cost rates. In some
instances. a single indirect cosl rate for all '
activities of an organization or for each major
lunction of the organization ay not be
appropriate, since it would not take inlo
account those different factors which may
substantially aCCect the indirect costs
applicable to a particular segment of work.
For this purpose. a particular segment of
work. For this purpose. a particular segment
of work may be lhat perlormed under a single
award or il mav consist of work under a
group of awards performed in a common
environment. the lactori may inClude the
physicallocalion of the work. the level of
Administrative support required. the nature of
the facilities or order resources employed, the
scientific disciplines or technical skills
involved. the organizational arrangements
used. or any combination thereof. Whcn a
particular segment of work is performed in an
environment which appears to generate a
significantly diCCerentlevel of indirect costs,
provisions should be made for B separa te
indirect cost pool applicable to such work.
The separate indirect cost pool should be
developed during the course of the regular
allocation process. and the separate indirect
cost rate rcsulting therefrom should be used
provided it is determined that (i) the rale
diCCers significantly from lhat which would
have been obtained under paragraph 0.2. 3.
antl4 above. Bnd (ii) the volume of work to
which the rate would apply is material.
E. Negotiation and Approval of Indirect Cost
nates.
I
Office of Management and Budget Circular A.122 (6/27/80)
1. Definitions. As used in this section. the
following terms have the meanings set forth
below:
a. "Cognizant agency" means the Federal
agency responsible for negotia ting and
approvins indirec:t cost rales for a nonprofit
organization on behalf of all Federal
agencics.
b, "Predetermined rote" means an indirect
cost rate. applicable to a specified current or
future period. usually the organizalion's fiscal
year. The rate Is based on an estimate of the
cosls to be incurred during the period. A
predetermined rate is not Bubjectto
adjustment.
c. "Fixed rate" mcalls an indirect cost rate
which has the sllmc choracleristic~ as a
predetermined rale. except that the difference
between the estimated costs and the actual
costs of the period covered by the rule is
corried forward as an adjustment to the rate
computation of a subsequent period,
d. "Final rate" means an indirect cosl rote
applicable to a specified post period which is
based on the actual costs of the period. A
final rale is not subject to adjustment.
e. "Provisional ra Ie" or billing ra te means a
temporary indirect cost rale applicable to a
specified period which is used for funding.
interim reimbursement. and reporting indirect
cbsts on awards pending the establishmenl of
a ra te for the period.
f. "Indirect cost proposal" means the
documentation prepared by an organization
to substantia Ie its claim for the
reimbursement of indirect cosls. This
prop~sal provides the basis for the review
and negotiation leading to the establishment
of an organjzation's indirect cost rate.
g. "Cost objective" means a function.
organizational subdivision. contracl. granl. or
other work unit for which cost data are
desired and for which provision is made to
accumulate and measure Ihe cost of
processes, projects. jobs and capilalized
projects.
2. Negotiotion ond opprol'ol of rotes.
a. Unless different arrangements arc
agreed to by the agencies concerned. the
Federal ~gp.ncy with the largest dollar value
of awards with an organization will be
designate:! as the cognizant agency for lhe
:legotia tion and approval of indirect cost
rates and. where necessary. other rates such
as fringe benefit and computer charge-out
rates. Once an agency is assigned cognizance
lor a particular nonprofit organization. the
assignment will not be changed unless there
is 6 major long.term shift in the dollar volume
of the Federal awards to the organization. All
concerned Federal agencies shall be given the
opportunity to participate in the negotiallon
;lrocess. but after a ra te has been aBreed
upon it will be accepted by all Federal
agencies. When a Federal agency has reason
10 believe that special operating factors
affecting its awards necessilate special
i:ldirect cost rales in accordance with
paragra.ph 0.5 above. it will. prior to the time
tne rales are negotiated. notify Ihe cognizant
agency,
b. A nonprofit organization which has not
previously established an indirect cost rale
with a Federal agency shall after the
crganization is advised thai an award will be
made and, in no event. later than three
months alter the effective datc of Ihe award.
c. Organizations Ihat have prcviously
eSlablished indirect cost rates must submit a
new indirect cost proposal to the cognizant
agency within six months after the dose of
each fiscal year.
d. A predetermined rale may be negotialed
for use on awards 'where therp. is reasonoble
a ssurance. based on past experienc:e and
reliable projection of the organization's cosls,
that the rate is not likely to excced a rale
ba~ed on the organization's oclua] costs.
e. Fixed rates may be negotiated where
predetermined rates are not considered
appropriale. A fixed rate, however. shall not
be negotiated if (i) all or a substantial portion
of the organization's awards are expected to
expire before the carry.forward adjustmcnt
can be made: (ii) the mix of Government and
non.government work althe organization is
too erratic to permit an equitable carry.
forward adjustment; or (iii) the organization's
operations Ouctuate significantly from year to
year.
r. Provisional and final ra les shall be
negotiated .where neither predeterlllined nor
fixed rates are appropriate.
g. The results of each negolia tion shall be
formalized in a written agreemenl belween
the cognizant agency and the nonprofit
organization. The cognizant agency shall
distribute copies of the agreemcntto all
concerned Federal agencies.
h. If a dispute arises in a negolia tion of an
indirect cost rate between the cognizant
agency and the nonprofit organization. the
dispute shall be resolved in accordance with
lhe appeals procedurcs of the cognizant
agency.
i. To the extent that problems ure
encountered among the Federal agencies in
connection with the negotiation and approval
process, the Office of Management and
Budgel will lead assistance as required to
resolve such problems in a timely manner.
[Circular No. A-122]
Attachment B
Selected Ilems of Cosl
Toble of Contents
1. Advertising costs
2. Bad debts
3. Bid anrl proposal costs (reserved)
4. Bonding costs
5. Communication costs
6. Compensa tion for personal services
7. Contingency provisions
fl_ Contributions
G. Dcprtciatlon lInd use allow/lnces
10. Th:lnations
11. Employee morale. health and .welfare
costs and credits
1~. Enler~6inii1cn~ costs
13. Equipment and other capital expenditure~
H. Fines And penalties
15. Fringe beneli..
15. Idle 'facilities and idle capncity
17. Independent research and developmeot
(resen'ed)
1!l. Insurance and indc.mnific3tion
19. Inlere~t, fund-raising. andinvestmenl
managem!:nl costs
20. Labor relalions c[)~IS
.I
A-122:4
21. L0SS('S on ollie. a.,...ard;
ZZ. Muintenance a:1d r<:p/lir costs
23. MateriAls "",d supplie.
24. Mcetin;:~. c:onfercnccs
2.J. MemLersl:ips. subscriptions. ,lIId
professional activity cusls
20. Organiwtion co~ts
:1.7. O\.rrlime, extra.par shifl. and multishifl
prcloiums
26. Pa;;:e charf!cs in professional journal~
:!9. Parlicipant support costs
3D. Palenl cos\~
31. Pension pluns
32. Plant sccurity costs
'33. Preaward cosls
34.. ProfessionRI service costs
3&. Profits and 105ses on dispo~ition of
depreciable properly or other capital
/Isseis
31j. Public ilHormlltion sen'ice costs
37. Publication /lnd printing costs
:iO. Rearrangement and alteration costs
39. Recon\'ersion costs
40. Recruiling cost.
41. Relocation costs
42. Rental costs
43. Royalties and other costs for lJ'!;e of
palents lInd copyrights
44. Se\'erance pay
45. Specialized service facilities
41i. Taxes
47. Termil'..lItion costs
40. Trainlns and educalion costs
49. Transportotion costs
50. Travel cosls
[Circular No. A-1Z2]
Allochmenl B
Selected Items of Cost
Paragraphs 1 through 50 provide principles
to be applied in establishing the allowubilily
of cp.rtoin items of cost. These principles
opply whether a cost is trea led as direct or
indirect. Failure 10 mention a particular item
of coat is not intended to imply thai il is
unallowable: rather determination as to
ollowability in each caae should be based on
the trealmenl or principles provided for
similar or rela ted items of cost.
1. Advertising costs. .. '
a. Ad-'ertisinf! cosls mean the costs of - -
media sm"ices and associated costs. Media
odvertising includes magazines. newspapJrs.
radio and television programs. direct maiL
exhibits. and the like.
b. The only advertising costs allowable are
those which are solely for (i) the recruitment
of peraonnel when considered in conjunction
with all other recruitment cosls. as sel fortb
in parRsraph 40; ,(ii) the procurement of goods
ane! services: (iii) the dispoBal of surplus
materials acquired in the performance of the
llward except when orgAniulions are
reimbursed for disposals at II predetermined
omount in accordance with Attachment N of
OMU Circular A-11O; or (i\') specific
,requirements of the award.
2.. Bod dobts. Bad "{!ebts. including 1000ses
(whether actual or estimated) arising from
uncollectible accounts IInd other c1l1ims.
related collection cosls, and relat(td legal
cosl.. are unallOWAble.
3. Bid ond propo~al costs. (reserved)
4. Banding costs.
.....,'\1
I
Office of Management and Budget Circular A-122 (6/27/80)
a. Ooncling co~ts arise wh~n Ihe
Governmcnt rcquirc~.a9wrance a'lRin~t
finuncial los~ 10 il.seH or others l>y reason of
the acl nr default of the ol'!zRoi2.ation. They
urise also in instftnce, where the organi2.atioo
r~quires similar assuranoe. Induded are such
bonds as bid, performance. payment.
lllhance parment. InfringemenL and fidelity
bUilDs.
b. Custs of bonding required pursuant 10
the terms of the awarclllre allowllhle.
c. Co~ts of bonding required br the
org,1oiwtion in the general conduct of its
uperations arc allowable to the e>:tentthat
such bonding l~ in accordance with sound
business practice and the rotes and pt'emiums
arc reasonable under the c:1rcumstances.
5. Communicatian OCMtC. Cosls incurred for
telel'hone services. local and long distaoce
telephone calls. telegrams. radio!lrams.
postage IInd the li~e. are allowable.
6. Campensation for personal sen'ices.
a. Definition. Compensation for peraonal
services include~ 811 Compci'lsalion paid
currently or accrued by the orgnr:i:!:ation for
services of employells rendered during the
period of the award, (except os otherwise
prllvided in paragraph g. below). II includes,
but is notlimitcd to, aalaries. wllges,
director's and executive commillee member's
fees. incenti\'e awards. fringe benefju.
pension plan cosls, allowances for oIT.site
pay, incentive pa)', location allowanccs.
herdship pay, aod cost of Ii ,.jng difierennals.
b. A llowabilily. E.ltccpt as otherwiBe
!;>ecifically provided in this paraP"aph the
costs of such compeo.sation are aUowable to
the extent that:
(1) Total compensation to.indi\'idual
employees is reasonable foc the services
rendered end conforms to the estabiished
policy of the organization consistently
applied to both Government and Don.
Government activities; and
(2) Charges to awards whether treated as
direct or indirect cosls are determined and
supported a\ required in thill paragraph.
c. Reasonableness.
(lJ When the organi2.ation is predominantly
engaged in activities other than tho~e
sponsored by the Government. compensation
for employees on Governmont-sponsored
work will be considered reasonllble to the
extent thatll is consistent with that paid for
similar work in the organi2.a lion' sather
activities.
[ZJ Wheo the organi2.alion is predominllntly
engaged in Government.sponsored activities
and in cases where the kind of employees
required for the Government activities are
not found io the organizatioo's otha.r
activities, compensation for employees on
Go\'ernment.sponsored work will be
considered reasonable .to the extent thai it is
comparable to that paid for similar work in
the labor markets in which the organization
competes for the kind of employeesinvoh'ed.
d. Special considerations in determining
allowobility. Certain conditions ~uire
special co.nsideration and possible limitations
in determining costs under Federlll awards
where amounts or types of compensation
appear unreasonable. Among such conditions
ore the following:
(1) Compensation to members of nonprofit
orplOiu.tions, trustees. directors. a~soc:iRtes.
officers. or the immedinte flllllilies thereof.
Determination should he made Ihol s\lch
compensation is re~s(}noule for the actunl
persom" servic:es rendered rllther than a
distribution of earnings in excess of costs.
(Z) Any change in an ol1lnlli2.Slion's
compensation policy reBulling in a
substantial increase in the orgnnil:ation's
level of compensation, particularly when it
was concurrent with an incrcnse inlhe ratio
of Government Dwards to olher activilies of
the organization or any chllnge in the
treatment of allowaliility of specific types of
compensatiun due 10 changcs in Government
policy.
e. Unallowable costs. Costs which are
unllllowable under other paragraphs of Ihis
Al1achmcnt shall not be allowable under this
pnragrllph soleI)' on OIC basis thatthcy
constitute personal compensation.
f. Fringe beneflls.
(1) Fringc benefits in the form of regulnr
compensation paid 10 cmployecs during
periods of authori2.ed absenccs lrom the job,
such as vacation leave, sick leave, militar)'
leave, and the like, are allowable provided
such costs are absorbed by all organization
activities in proportion to thc relative amount
of time or effort actually de\'olcd to each.
(2) Fringe benefits in Ihe form of employer
contributions or expenses lor social securit)..
employee insurance. workmen's
compensalion insurance, pension plan costs
(see paragraph g. below). and the like, are
allowable provided such benefits are granted
in accordance with eSlablished wrillen
organization policies. Such benefits whether
trea ted as indirect casu or liS direcl cosls.
shall be distributed to particular awards and
other activities in a manner consistent with
the pallern of benefits accruil18 to the
individuals or group of employees whose
salaries and wages are chargeable to such
awards and other adivities.
(3)(a) Provisions for a reserve u:1der a self.
insurance program for unemplo)'ment
compensation or workmen's compensation
are allowable to Ihe ex lent that the
provisions represent reasonable estimates of
the Iiabililiec for such compensation. and tho
types of coverage, extent of coverage. and
rates and premiums would have been
allowable had insurance been purchased 10
cover the risks. Ho.....ever, provisions for self.
insured liabilities which do nol become
payable for more than one year after the
provision is made shall not exceed the
present value of the liability.
(b) Where an organization follows a
coosistent pole)' of expenaing aclual
paymenls to. or.oo behalf oL employees or
'former employees for unemployment
1:ompensation or workmen's compansation,
such.payments are allowable in the year of
payment with the prior approvsl of Ihe
swarding agency provided they are allocated
toal1 activities of the organi2.alion.
(4) Casts of insurance on the lives of
lrustl'es, officers, or other employees holding
positions of similar reaponsibility are
allowable onlv to the exlent thai the
insurance rep~esents additional
compensation. The costs of such insurance
when the organi2.ation is named as.
_I
A-122:5
beneficiary are unallowable.
f,. PCllsion ploll costs.
(1) Costs of the orga/li2.ation's pension plan
which arc incurred in accardance with the
established policies of the organization are
allowable. provided:
(a) Such pulicies meet the test of
reasonableness;
(uJ The methods of cost allocation are not
discrimina tory; .
(e) The cost assigned to each fiscal year is
delermined in accordance with generally
accepted accounting principles as rret;cribecl
in Accounting Principles Board Opinion No.6
issued by the American Institute of Certified
Public Accountants; and
(d) The cosls assigned to a given fiscal yenr
ere funded for all plan participants within six
months aiter the end of that year. However,
increases to normal and past service pension
costs caused by a delay in funding the
actuarial liability beyond 30 days after each
quarter of the year to which such costs arc
assignable are unallowable.
(2) Pension plan termination insurance
premiums paid purauantto the Employee
Retirement Income Security Act of 19i4 (Pub.
L. 93-400) arc allowable. Late payment
charges on such premiums are unallowable.
(3) E.ltcise taxes on accumulated funding
deficiencies and other penalties imposed
under the Employee Retirement Income
Security Act are unallowable.
h. Incentive compensation. Incentive
compensation to employees based on cost
reduction. or efficient performance,
suggestion awards. safety awards. etc.. are
allowable to the extent that the overall
compensation is determined to be reasonable
and such costs lire paid or accrued pursuant
to an agreement entered into in good faith
between the organization and the employees
before the services were rendered. or
pursuant to an established plan followed by
the organization so.consistently as to imply,
in effect. an sgreement to make such
poymen\. .' .
i. D"ertime. extra pay shlfl. and multJshift
premiums. See paragraph 27.
j. Severance pay. See paragraph 44.
k. Training and ~ducation oo~ts. See
paragraph 46... ..
1. Support of salaries and wages. .
(1) Charges to awards for salaries. and
wages. whelher treated as direct costs or
indirect costs, will be based on documented
payrolls approved by a responsible official(s)
of the organiza tion. The distribution of
salaries and wages 10 awards must be
supported by personnel activity reports as
prescribed in subparagrsph (2) below. except
when a substitute system has been approved
in "''Titing by the the cognizant agency. (See
paragraph E.2 of Attachment A)
(2) Reports reflecting the distribution of
sctivity of each employee must be
maintained for all staff members
(professionals and nonrrofessionalsJ whose
compensation is chargee!. in whole or in part,
directly to awards. In addition. in order to
supporllhe allocation of indirect cosls. such
reports must also be maintained for other
employees whose work involves two or more
funcitons or activities if a distribution of their
compenwtion between such functions or
nc:livities is needed in the determination of
~ ,~ ..
.
,.
/'
I
Office of Management and Budget Circular A-122 (6/27/80)
the organization's indirect cost rllte(s) [e.g.,
an employee engaged part-lime in indirect
cost activi ties and part. time in a direct
function). Reports maintained by nonprofit
organizations to 8atisfy these requirements
must meet the following standards:
(a] The reports must reOect an after.the.
focI determination of the actual activity of
each employee. Dudget estimates (Le..
eslimates determined before the servicp.s are
performed) do nol qualify os support for
chllrges to awards,
(b) Euch report must account for the totnl
acti\'ily for which employees are
compensated and which is required in
fulfillment of their obligations to lhe
organization.
(c.] The reports must be signed by the
individual employee. or by a responsible
supervisory official having first hand
knowledge of the activities performed by the
employee, that the distribution of activity
represents a reasonoble estimate of the
actual work perfo:med by the employee
during the periods covered by the reports.
(d) The reports must be prepared at least
monthly and must coincide with one or more
pay periods.
(3) Charges for the salaries end wages of
nonprofessional employees, in addition to the
'supporting documentation described in
subparagraphs (1) and (2) above. must also
be supported by records indica ting the total
number of hours worked each day
maintaioed in conformance with Department
of Labor regulations implementing the Fair
Labor Standards Act (29 CFR Part 516). For
this purpose. the term "nonprofessional
employee" shall have the same meaning as
"nonexempt employee," under the Fair Labor
Standards Act.
(4) Salaries and wages of employees used
in_meeling cost sharing or matching
requirements on awards must be supported in
lhe same manner as salaries and wages
claimed for reimbursement from awarding
agencies.
i. Contingency provisions. Conlributions to
a contingency reserve or any similar
provision made for events the occurrence of
which cannot be foretold with certainlv as to
timp.. intensity. or with an assurance o[ their
;,aypening. are unallowable. The term
"contingency reserve" excludes self.
infiu.ance reserves (!ee paragraph 6.f.(3) and
1u.a.(2){d)): pension funds (see paragraph
6.[g)): and reserves for normal severance pay
[see paragraph 44.(b){l).
8. Contributions. Contributions and
dona tions by the organiza tion to othe.s a.e
unallowable.
9. Deprecioiion and use ollowonces.
a. Compensation for the use of buildings.
other capital improvements, and equipment
l:;-: }>and may he rr,ade through use
p.!io.....an.;es or depreciation. However. excepl
as pmvidcd in paragraph f. below a
cOlnuii1alion of the two methods mav not be
I:sed in cllnnection with a single cla;s of
fixed as.ets (e.g.. b~dJdings, office equipment.
cl.'ll\puler equipr.\eni. ele.).
b. The compcta!ion of use allowances or
';',prl'ciatir,n shall be based on the
dl~'luisition cost of the assels involved. The
"c.oc:sition cosl of an assel cllr:aled 10 the
or~ani7.8tion by a lhird part~' shall be its fair
market value at the lime of the don<Jlion.
c. The computation of use allowances or
depreciation will exclude.
(1) The cosl of land:
(2) Any porlion of the cost of buildings and
equipment borne by or donated by Ihe
Federal Government irrespective of where
title was ori!:inally vested or where it
presently resides: and
(3) Any po.tion of the C08t of buildings and
equipment co'~tribuled by or for the
or!oianizaliun in satisfaction of a statutory
matching retirement.
d. Where the use allowance method is
followed. the use allowance for buildings and
improvement (including land improvements
such as ptlved f'arking areas. fences. and
sidewalks) will be computed at an annual
rate not exceecing two percent of acquisilion
cost. The use allowance for equipment will
be computed at an onnual rate not exceedir:g
six ond two.thirds percent of ncquisition cost.
When the use allowance method is used for
buildings. the entire building must be treated
as a single asset; the building's components
(e.g. plumbing system. heating and air
conditioning. etc.) csnnot be segreguted from
the building's shell. The two percent
limitation, howe",.)r. need not be applied to
equipment which is merely attached or
fastened to the huilding but not permanently
fixed to it and which is used as furnishings or
decorations or lor specialized purposes (e.g..
dentist chairs and dental treatment units.
counters. laboratory benches bolted to the
fluor. dishwashers. carpeting. etc.). Such
equipment will be considered as not being
permanently fixed to the buildir:g if it can be
removed without the need for costl\' or
extensive altera tions or repiii.s to the
building or the equipment. Equipment that
meets these criteria will be subject to the six
and two. thirds percent equipment use
allowance limitation.
e. Where depreciation method is followed.
lhe period of useful service (useful life)
established in each case for usable capital
essets must take into consideration such
factors as type of construction. nature of the
equipment used. technological developments
in the particular program area. and the
renewal and replacement policies followed
for the the individual items or classes of
assets involved. The method of depreciation
used to assign the cost of an asset (or group
of assets) to accounting periods shall reDect
lhe pa lIern of consumption of the asset
during its useful life. In the absence of clear
evidence indicating that the expecled
consumption of the asset will be significantly
greater or lesser in the early portions of ils
useful life than in the later portions. the
s:rai;;ht.line method shall be presumed to be
the eppropriate method. Depreciation
methods once used shall not be changed
unless upproved in advance b\' the cooniwnt
Fcceral agency. When the depreci"tio~
melhod is introduced for application \0 assels
previously subject to a use allowance. the
combinlltion of use all{.lwances and
oepreciat'on applicOlble to such assets must
not exceed the total acquisition cost of the
assets. VI'hen the depreciOltlon method is useu
f!'r huildings. a buildill~'s shell n;ay ue
_I
A-122:6
se~rega\ed from each building component
(e.g.. pkmbing system. heating. and air
conditioning syslem, elc.) and each item
depreciated over its eslima'ed useful life; or
the entire building (i.e.. the shell ond all
components) mal' be treated os a sir:gle asset
and depreciated over a single useful life.
r. When the depreciation method is used
for a particular clas8 of assets. no
depreciation may be allowed on any such
assets that. under puragraph e. above, would
he viewed as fully depreciated. However. n
reasonllble use allowance mllY be negotiated
for such assets if warranted alter taking into
cunsideralion the omount of depreciation
previously charged to the Government. the
estimated useful life remaining at time of
negoli<Jtion. the effect of any increased
m<Jintenaoc.e charges or decreased efficiency
due 10 age. and any other factors perlinent to
.Ihe utilization of the asset for the purpose
contemplated.
g. Charges for use allowances or
deprecialion musl be supported by adequale
property records and physical inventories
must be taken at least once every two years
(u st<Jtiltical sampling basis is acceptable) to
ensure that assets exist and are usable end
needed. When the depreciation method is
followed. adequa te de;>recia tion records
indicating the amount of deprecintion taken
cach period must also be mainlained.
10. Dona/ions
a. Services received.
(1) Donated or volunteer services may be
fUTn!shed to an organization by professional
o!1d technical personnel. consultants. and
olher skilled and unskilled labor. The value
of these services is not reimbursable either as
a direct or indirect cost.
(2] The value of donated services utilized
in the pe.formance of a direct cost activity
shall be considered in the determination of
the organization's indirect cost rate[s) and.
uccordingly. shall be alloca ted e
I'roro.tion~\e share of applicable indirect
costs when the following circumstances exist:
(a) The agg:-egale value of the services is
ntOlterial;
(b) The services are supported b~'o{l
signific:;nt amo\!nt of the i~lirect costs. . .
incurred by the organiza lion:
Ic) The dir~ct cost activity is not pursu'cd
primarily for lhe benefit of the Federal
GO\'I,mmanl.
(3) In those illstances ",heie there is no
b.1Sis for determining the fair market \'alue of
the services rendCTed. the recipient and the
cogniZ<Jnt agency shall negotiale an
oj,propriate aiioc::tion of inJirect cost to the
services.
(4] Where donOlted services directly benefit
a r-rojcc\ supported by an a ward. the indirect
costs allocated to the services \'om be
con~idered as a part of the tolal cosls of the
project. Such indirect costs may be
reimbursed under the award or used to meet
cust sharing or matching requiremenls.
[5) The value of t~e donated ser\'ic[;s may
tw used \0 mect cost sharing or ma\ching
rf:quirements under conditions described in
1'.llnr.hmenl E. 01\113 Circular ;-';0. A-lID.
V,here donated services nre trealed as
indirecl costs. indirect cost rates will
s"parOlI~ the value of lhe donntions so that
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I
Office of Management and Budget Circular A-122 (6/27/80)
reimbursement will not be made.
(6) Fair market valu(: of donated services
shall be computed as follows:
(a) [lotes for volunteer services. Ratcs for
volunteers shall be consistent with those
rcgular ra tes paid for similar work in other
activities of the organization. In cases whcre
the kinds of skills involved arc not found in
the olher aclivities of the organization. the
rates used shall be consistcnt with thosc paid
for similar work in the labor market in which
the organiza tion compctcs for such skills.
(b) Sen'ices donated by other
organizations. When an employer donates
the scrvices of an cmploycc. thcsc services
shall be valued at the employee's regular rate
of pay [exclusive of fringe benefits and
indirect costs) provided the services arc in
the samc skill for which the employee is
normally paid. If the services are not in the
snme skill for which the employee is normally
paid. fair market value shall be computed in
occordance with subparagraph [a) allove.
b. Goods and space.
(1) Donated goods: Le., expendable
personal property/supplies. and donated use
of space may be furnished to Rn organization.
The value of the goods and space is not
reimbursa ble either as a direct or indirect
cost.
(2) The value of the donations may be used
to meet cost sharing or matching share.
requirements under the conditions described
in Attachmcnt E. OMB Circular No. A-ll0,
The value of the donations shall be
detcrmined ie accordance with Attachment
E. Where donations are treated as indirect
costs. indirect cost ratcs will separate th~
value of the donations so that reimbursement
will not be made.
11. Employee morale. health. and welfare.
costs and credits. Thc costs of house
publications. hcalth or first.aid clinics. and/
or infirmaries. recreational activitics.
employees' counseling services. and othcr
expenses incurred in accordance with the
organization's estalllishcd practice or custom
for the improvement of working condilions.
employcr.employee relations. employee
morale. and employee performance are
allownble. Such costs will be equitably
apportion~d to all activities of the
organization. Incomc generatp.d from any of
these activities will bc credited to the cost
. thereof unless such income has bcen
irrevocublj' sct over to employe~ wclfare
orga niza I ions.
12. Entertainmen! costs. Costs of
amuscment. divcrsion. social activities.
ceremonials. ond costs relating thereto. sucl.
as meals.. lodging. renlals. tramportation. and
gnlluities are unallowable (but see
p"r1!graphs 11 and 25).
13. Equipment and other capital
e.\penditures.
a. As used in this parngraph. the following
Lc=~ha\'elhe.mc,!ninm; 1l.~.l(Qrlh below:
[1) "Equipmenl" means an article of
nonexpcnda ble langible personal property
ha\'lng a useful life of more than Iwo vears
B:1d on acquisition cost of $500 or mo~e pcr
unit. An organization mn\' use its own
definition providcd Ihat i't at least includcs all
~C'r!expendable tangible persona! properly IlS
(jeflOed herein.
(2) "^cqui~ition cost" meons the nct
invoice unit price of an item of equipment,
including the cosl of any modifications.
attachments, accessorics. or auxiliary
apparatus necessary to make it usable for the
purpose for which it is acquired. Ancillary
charges. such as taxes, duty, protective in.
transit insurance. freighl. and installation
shall be included in or excluded from
acquisition cost in accordance with the
organization's regular written accounting
practiceR.
(3) "Special purposc equipl.lenl" menns
equipmenl which is usable only for rescnrch.
medical, scientific. or technical activitics.
Examples of spccial purpose equipment
include microscopes. x.ray machines. surgical
instruments. and spectromcters.
(4) "Gcneral purpose equipment" mcans
equipment which is usable for other than
research. medical. scientific. or lechnical
activities. whether or not spccial
modificalions arc needed to make them
suitable for a particular purpose. Examples of
general purpose equipment include office
equipment and furnishings. air conditioning
equipment reproduction and printing
equipment. motor vehicles. and automalic
data processing equipment.
b. (1) Capital expenditures for general
purpose equipment are unallowable as a
direct cost except with the prior approval of
tbe awarding agency.
(2) Capital expendilures for special purpose
equipment are allowable as direct costs
provided that items with a unit cost of $1000
or more have the prior approval of the
awarding agency.
c. Capital expenditures for land or
buildings are unallowable as a direct cost
except wilh the prior approval of the
awarding agency.
d. Capital expenditures for improvements
to land. bl:ildings. or equipment which
materiallv increase their value or useful life
arc unall~wable as a direct cost except with
the prior approval of the awarding agency.
e. Equipment and other capita]
expenditures are unallowable as indirect
costs. However, see paragraph 9 for
allowabilitv of use allowances or
deprecia ti~n on buildings. capital
improvements. and equipment. Also. see
paragra"h 4Z for allowability of rental costs
for land. buildings. and equipment.
14. Fines and penalties. Costs of fines and
pcnalties resulting from violations of. or
faBure of the organization to comply with
Federal. State. and local laws and regulations
are unallowiible except when incurred as a
result of compliance wilh specific provisions
of an award or instructions in writing from
the awording agency. .
15. Fringe benefits. See paragraph 6. r.
16. Idle facilities and idle capacity.
a. As uscd in Ihis paragraph the following
terms hnve thc meanings set forth below:
(1) "Focilities" means land and buildings or
any portion thercof. equipment individually
or collectively. or any other longible capita'!
ossel. wherever located. and whether owned
or leased by thc organization.
(2) "Id!e facilities" mcans completely
unll!iJ)d facilities tha: arc e'1(cess 10 the'
organi2.o tion's current needs.
[:Ji "Idle cnpnci:,'" means the unu~ed
.I
A-122:7
capacity of partially used facililies. It is Ihe
difference belweeD that which a facility
could achieve under 100 per cent opera ling
time on a one.shift basis less operating
interruplions resulting from lime lost for
rcpnirs. eelups. unsatisfactory materials. ano
oth~r normal delays. and the extent 10 which
th~ fncility was actually u,ed to meet
demands during the accounlinR period. A
mullishift basis may be used if it con be
shown thaI this amounl of usage could
normnlly be expected for the type of facility
involved.
[4) "Costs of illle facilities or idle capacity"
menns costA such lUl maintenance. repair.
housing. rcnL and other related cosLq; e.g..
property taxcs. insurance. and depreciation
or use allowances.
b. The costs of idle facilibies are
unallo\~able except to the exlcntlh:ll:
(1) They arc unnecesft8ry to meet
fiuctualions in workload; or
(2) Although not necessary \0 meet
fiuclualions in workload. they were
n~cessary when acquired and arc now idlc
because of changes in program requirements.
efforls to achieve Dlore economical
opera tions. reorganiz.n lion. termina lion. or
olher causes which conld not have been
rcnsonobly foreseen. Under the exception
staled in tbis subparagraph. costs of idle
facilities are allowable for a reasonable
period of time. ordinarily nolto exc~ed one
ycar. depending upon the initiative laken to
Ilse. lease. or dispose of such facilities (bul
see paragraphs 47.b. and d.).
c. The costs of idle capacil)' are normal
costs of doing business nnd are a factor in the
normal fiuctuations of usage or indirect cost
rates from period to period. Such costs are
allowable, provided thl! capacity i8
reasonably anticipated to be p.ecessary or
wa~ originally reasonabie and is s!:bjectto
rcductian or elimination by subletting.
renting, or sale. in accordance with sound
business. economics. or security practices.
Widespread idle capacity throughout an
entire lacilily or among a group of assels
having substantially the same function may
be idle facilities. .
17. l."i"p.mdcnt rescu(Gh oIld dClle.1apment
[Rcserv"d:. .
18. IIlwrance and indemnfficction. 1
a. Insurance includes insurance "..hich the
organization is required 10 carry. or which is
approved. under the terms of the .:ward and
any other insurance which lh~ organization
maintains in connection with the general
cond!:ct of its operations. This paragraph
docs not apply to insurance which represents
fringe benefits for emr10yees (zee puragTOph
6.f. and 6.g.(2}).
(J) Costs of in.~lTancc r~quired or
arproved, and maintained. pursuilntlo the
award are allowable.
(2) Costs of olher ins1Jrance main!oined bl'
tbe org"nization in connection wilh the .
general conduct of its opel'alions are
ullowable subject to the followin~ limitations.
(a) Types and exlent of coverage shall be
in accordance vdth sound business practice
and the ratcs nnd premiums sholl be
reasonnble under the circumstances.
(bl Cn~ts allowed for busincs5 interruption
or olhp.r similar insurance shall be limited to
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Office of Management and Budget Circular A-122 (6/27/80)
exclude coverage of managern~nt fee~.
(c) Costs of insurance or of any pr(',,;~icl1~
for a reserve covering the risk of luss nr
d~l11age to Government properly are
ullowable only ta !he extent Ihal the
or~~njz.a!i()n i~ J!"ble for such )()s~ or dan1aC!':.
(J) Pruvi~ions for 8 reserve under a ~elf.
iIl5"J~a:..;e prc:gram arc allowable 10 Ihe
exlent thattrpe~ of coverage. ext"r.! of
covera'ge. m'.e,. and premiums woule h""..
been allowed had i~su~"nce been pllr(;hased
10 cov..:r the ri,ks, However. provisL:m fur
knnwn ur reasonablv eslimu'ed self.insured
liabililies. which do 'noi become payauie for
more than one year after the provisior. i~
made shalll;ot exceed the presenl value of
the liabilily.
(el Costs of inSllrance on the Irves of
Irustees, officers. or other e;nployee~ holding
positions of similar re:;ponsiui!ilies arc
allo',>able only to Ihe extent lh<:!tlhe
insurance represenls additional
compensation (see pnragTflph 6). The CIlSt of
such insurance when the or;lJr.;zation is
idenlified as thc beneficiary is unallow;;ble.
(3) Actuallosse~ which could have been
covered by perm:r.nible insura:1ce (throuC!h
the purchase of insur:m:;e or a self.insurance
program) are unall"wable unless expressly
provided for in the awarn. except:
(a) Costs incurred ber:au~e of losses nol
covered under nomin<:!l deductible insurance
coverage provided in kPeping with sou:1d
business practice are allowable.
(b) Minor losses not covered bv insurance.
such as spoilage, breakcg?, and .
disappearance of supplies. which occur in the
ordinary course of operations, are allowable.
b. Indemnification includes securing the
organiza tion against lia bilities ~o third
persons end any other loss or damag,:,. not
compensated by innuri'll1ce or othen'"ise. The
Government is obligated 10 indemnify the
organiza tion only to \he extent expressly
provided in the award.
19. In/ere:;t, fund raising, and inl'estment
J:7anagement costs.
a. Costs incurred for interest on borrowed
capilal or tl'mporary use of encowment
lund~. however rcpresented. are unallowable.
b. Costs of orga:1ized fund rai~ing.
including financial campaigns. elldowment
drives, solicitation of gifts and bec;uests. and
similar expenses incurred ;;olr\y to raise
capital or obtain conlributions are
unallowable.
c. Costs of investment counsel ar.d staff
end similar expenses incurred sole1\' 10
enhance income from Invent:nenls ;re
unellowable.
d. Fund raisir.g and investment activities
shall be allocated an appropriate sbre of
indirect costs under the conditions described
in paragraph B of Attachment A.
20. Lobar relations co.~ls. Co~ts incurred in
maintaining sulislac!ory re:ations bet....'een
the organization and its emplovees.indudinn
costs of labor ma;'lagemenl r:o~l;'lillees. =-
employee publications, and olher related
e:tivities arc allowable.
21. Losses on other awards. Anv excess of
cosls over income on any awurd is
l::1allowable as a cosl of any other award.
Tnis includes. but is not limiled to, Ihe
ccg?nization's contributed portion by reA~on
of cc'st sharin!: h~reernenl3 or any
underrecoveries through ne~otiation of lump
sums fnr. or ceilings I'n. indir%t eosls.
::2. A-fain!encnce and repair costs. Cnsts
incurn:d for nec~~sary maintenance. repRir.
or upkeep of bllilding~ Rnd eqlli;>melll
(incl.;ding Gov~mme:11 property unlcss
o:herwi~e pruvided for) which neither addlo
t!1e ~ennanent \'a!up. of the property nor
appreciably :Jrclong ite intendcd life, I;ul
ke~p it in an eff!cient operathg conn,lic,". are
alll1wahle. Co~ts inclIrred lor i~rr,,\'''ment9
which Rdd to the permanent value of the
built:ings and equipOle!lt or appreciably
prolong their inle:1ded life shslllJe treated a9
cuj'ilal exp('ndit~res (~ee par:lgraph 13).
2J. Muterin!s and supplies. TIle costs of
materials and supplies nccessarl' to Cllrry out
nn Award are a!:l1wBble. Such C05t~ should be
r:harged at their actual prices after deducting
nil cash di~counts. trade disr;ounts. rebates.
and allowances recci'/ed by Ihe organi:::ltion.
\'\'ithdrawals from genel aJ stores or
stockrooms should be charged at cont under
any recognized method of pricin:;
cUllsislently applied. Incoming transportation
charges Jnay be a ~roper part of rTI<!terial
cost. Materials and supplies charged' as a
dir(!ct cost should include only the mal(:rials
and supplies actually used for the
performance of the contract or grant. and dlle
credit should be given for nny exce,s
materials or supplies retained, or returnf'd 10
vendors.
24. Meetings. conferences.
a. Costs associated with the conducl of
meetings. and conferr.nces. and include the
cost of renting facilities, meals. speakP.rs'
fees. and the like. But see paragraph 12,
Enterta:nment costs, an::! paragraph 29.
Participant suppert costs.
b. To the extent that these cosls are
identifiable with a partlr.ular cost objeclive.
thl'Y should be charged to that objective. (See
paragraph B. of Attachment A.) These costs
are allowable provided that they meet Ihl!
generullests of aHowa ble. shov.'l1 in
Attachment A to this Circular.
c, Cost~ of meetir.gs ar.d conferences held
10 conduct the general administration of the
organization are allowable.
25, Memberships. subscrlplions, and
professional activit I' costs.
a. Costs of the organization's membership
in civic. businP.ss. technical and professional
or~anizalions are allowable.
b. Costs of the organization's subscriptions
to civic. business. professional. and technical
periodicals are allowable.
c. Costs of allendancp. ut meetings and
cllnferences. sponsored by olhers when the
primary purpose is Ihe dissemination of
tod-.nicnl informalion. are "lllowab!e. This
induues costs of meals. tra'1s?ortatiun. and
other items incidental to sur:h attendance.
20. Organization cas Is. Ex"enditure~. such
<IS incorpora:ion fecs. brokers' fe~s. fecs to
promnters. organizer~ or manage;nen:
crm~ultanls. a:lomevs. account<:!nls nr
Inve~tmo:lnl cOllr.s~l~rs. whrther or ~ot
~mlJloyces of the organiz.ation. in connection
with eslilulishment or reorgani~a\ion of an
or~an;:liItion. are unallowable except with
priur appravHI of the aWHrding agency,
27. O"r.rlirllC, extra-pay sJlll:. and
.I
A.122:8
nJlil:i,<h;"r pn ,uiUl1Is. l'rcmium~ for u\ertil11l'.
(',tlil'flay shifts, anci lOullishift work arc
,";u\\."\;I,, oni)' wi:h the prior nl'pro'JI of :l:P
tJ \\'a~u;ng ;'gency e>.l;epl;
J. \\'hen ll"ce~~MY to cope with
er.Ie!!:!enc:ies, such ~~ those Il:sulling fmlll
tJ..";,i.,,,'." natuliIl di~as\(:rs, brca:"downs 01
('ql!ipn'~rll. or (\(,;(::\f;jflnal opcrilti~mal
\J:llllrrrcl.:s of a spon:di(; nature,
h \'\'hell (:"'pior(:'~s are perlllrr,linf{ indin:ct
r,:ncli011R sllch "s administraliull,
n;aiJl!('nancr.. OJ o(.clJun:ing.
(:. In thc perfurmailce of lcst:;. I,,\:;nratury
prllrl:Jures, ur uther simii"r opera lions ""hidl
un' c(1;.Lnuolls in n.,lurc and cannot
re;lsr:n~~i:.. I;e illlerrtlpled or olhcrwi~'!
COt1t~I:~:!:.ti.
d. When 10w"l overull cosl lu the
(;o';('rr.;llCllt \\'ill result.
20.l'og[' t:hU'1JD. in professional journals.
PaGe c:h:Jrgcs lor professional journal
publica lions nre allowublc as a necer.sary
p:lrt 01 resenrch costs. where;
... The ruse<:rdl pllpers report wnrk
~ul'Pl1rteJ 0.1' the Go\'ernment: and
b, The c\;arges are levied impartiu!ly on ,dl
rl'f.l:"rdl j:aperf. publi~hed lJy the journat
whcth'~r O~ nol by Governmcnt.~ponsorrd
uulhnrs.
2!l. l'artil.ipo!ll support CLlstS. Puriicipan!
~upporl costs arc direct cosls [or ih~ms such
a~ stipend. or subsistence allowances, lruvel
11I1owanr,r'~. "nu regislration fees paid to or
un hehalr lIf participants or trainees (but nol
employe~s) in connection with meetings.
c:nnferences. symposia. or training projects.
Th..:se cosls are allowable wilh the prior
<Ipproval of the awarding agency.
30. Fu:cl:t costs.
a. Cc.sls oi (i) p.eparing disclosures,
reports. and other dClcuments required by the
a\\,;,rd ,lIIe of searching the art to the extend
necessary 10 make such disclosures. (ii)
prep;;ring documents and any other palent
costs ir. r:onnection wilh the filing and
pro~ecu::or. of a Uniled slates POl lent
npfl!;r.nliQn where litle or roynlly.free license
i~ reqllile-c by thc Governmr'nl to be
cO:1Veyed io the Governmenl. ::lnd (iii) general
l:Ouns"li:.g services relating to pateh~and
copyright O1HI\ers. such as ~vic:e nn pntenJ
and cop)':i!;ht laws. ~egu)alions. clauses. nnd
employee 3!:rc--cments are allowable (but see
pllrag:aph 34).
b Cu:;t of preparing disclosures, rerurts,
alld other documcr.ts a:1d of searching Ihe art
to the exlent necessary to make di~r.1osurcs.
if not reql:,red by the ~wllrd. He
unallowable. Cosls in connection with (i)
filillg and proseculing uny foreign patent
application, or Iii) an)' United Slatc~ polent
;,pplicutioil, where the award docs not
recl'.,rc conveying tille or a royalty.free
liu,nse tll Ihe Go\'ernmer.l. are unallowahle
("Iso .ee par"graph 43).
31, Pension plons. See paragraph 6. g.
n. Plant sccuril,l' CoslS. Neces~ar)'
expenses incurred 10 comply with
Guvcrr.ment security requirements or for
facilities prolection. including ,,'ages,
unifol ms, and equipment of personnel arc
IIllo","iJ1>le.
3J.l'reall'ord CO.<t5. Preaward Co~ls Bre
those in(;urred prior to the erreclil'e date of
thl! "ward directly pursuant \0 the
-;. 'V, .
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Office of Management and Budget Circular A-122 (6/27/80)
negolilltion ond in anticipation of the "ward
Whl"l' suc.h costs is necessary to comply with
:he proposed delivery schedule or period of
I'erform:lllce. Such cosls llre allowable only
lu ;he e:\lenlthatthey would have been
~i\owllb\e if incurred nfler the dlltc of the
~",ord MIld only with the wrillcn 81'provII1 r:f
the ~.n\.(Irdirlg ilgcn~y.
34. IJrr;{cssional sen'icc cos/s.
I\. Costs of profl'.:sional and consultnnt
services renclereJ by persons ,,'ho arc
r.:''''lbers of 8 particular professiun or possese
a sp~c:\al skill. illlJ who arc not office,s or
l'~i,iuyees of the orgllnizalion. arc allowable.
subject 1.0 L. c. and d, of this pOirngraph when
ff\dsOl.alJle in r'~lation.lo the servic['s
renderl'd and when not contingent \lpon
n:(:overv of the costs frum the Government.
b. In dct::rming the allowability of r.osts in
9 particular case. no single factor or any
special combination of factors is necessaril)'
delermindtive. However. the following
fiJl:tors are relevant:
(1) The noture and scope of the service
rellt;ered in relation 10 the service reqoired.
[21 The necessity of contracting for the
service. considering the organization's
r.apahility in the pnrliculnr area.
(3) The past pattern of such costs.
particularly in the years prior \0 Government
awarus.
(4) The impact of Government aWards on
the organiz:ltion's business (i.e.. what new
prohlems have arisen).
(51 Whether the proporlion of Government
work to the organization's total business is
su.;h as to innuence the organiza lion in favor
of incurring the cost. particularly where the
services rendered are not of a continuing
nature and have little relationship :0 work
under Government grants and corl~ucts.
(6) Whether the sen'ice can be performed
more economically by direct employment
rather than contracting.
(7) The qualifications of the individual or
concern rendering the service and the
customilry fees charged. especially on non.
Government awards.
{01 Adequacy of the contractual agreement
for the service (e.g.. description of the service,
C5tlma te of time required. ra te of
compen~ation. and termination provisions1.
c. In lIddition to the factors in paragr:lph b
above, retainer fees 10 the allowable must be
S\lflported by evidenr.e of bona fide services
a\'ail:Jble or rendered.
d. Cost of l?gHI. accounting. and consulting
~cr\'ices. and related costs incurred in
co!'\n~c\i(ln with defense of antitrust suits;
and the prosecution of clai.7l1s a~ainst the
Go\'ernment. are \1l1l111owoble. Cost~ of legu\.
HCGounling und consulting services. and
related costs. incurred in connection .....ith
palent il.(ring~ment litigation. organization
und reorgil!'lizution. are unallowable unless
c;lherwi~e pnwided fo,!. in the award (but see
pam~raph 47e1.
35. Profits nnd lasses on disposi/ion of
depreciable property or other capitol assets.
a. (1) Gains and 10R~ps on sale. retirement,
or other disposilion of Depreciable property
shdl be inclurled in the year in which thev
OLcur as creu:'"' or charges to cost groupi~g(s1
in which the depreciation applicable 10 such
property wus included. The amount ~f the
gai:J or loss to be inr.luded as a credit ur
charge to the appropriate cost grollping(sJ
SIl;.:1 be the dilferc:Jce bctwc.en the amount
n'dlized on the property and the
umJepreciated basis of the property.
(2) Gains and losses on the disposition of
(h-r-reciable property shall not be rer.ognized
I1S a separate credit or charge under the
following conditions.
Iii) The gain or loss is processed through Ii
deprecialion reserve account and is rcnecled
ill the depreciation allowatJle under
parugrnph 9.
(b) The propcrty is I;iven in exchange a~
parI of Ihe purcha~e price of a similar item
6:Jdlhe gain or loss is takcn into account in
de\crmining Ihe deprecia tion cost basis of the
new item.
lc) A loss re~ults from the luilure to
maintain permissible insurance, except OB
otherwise pruvided in puragraph 16.il.(3).
(d) Compensalion for Ihe use of the
properly was provided through use
allowance~ in lieu of depreciation in
occordance with puragrnph 9.
(e) Gains and losses arising from mass or
r.xtraordinarv salE'S. retirements. or other
dispositions 'shall be considered on a cuse.
b\'.ca~e basiB.
'b. Gains or losses of any nalure arising
from the sale or exchange of properly other
than Ihe property covered in paragrnph a.
above shilll be excluded in computing award-
costs.
35. Public informo/iun sen'ice cos/s.
a. Public inform a lion service cosls include
Ihe cost associated'with pamphlets. news
releases, and olher forms of information
services. Sur.h cosls are normally incurred to:
(1) inform or Instrucl indh'iduuls, groups. or
the general public.
(2) Interest individuals or groups in
participating in a service program 01 the
01 gsniza lion.
(3) Disseminate the results of sponsored
and nonsponsored aclivities.
b. Public info:mation service costs are
allowable as direct costs with the prior
a;::pro\'al of Ihp. awarding agency. Such cosls
are unallowable as indirect costs.
37. Publico/ion and printing cost!.
a. publication costs include the cosls of
printing [including the proce~<es 'of
composition. plate.making. press work.
binding. and the end products produced by
B'.lr.h processes). distribution. promotion.
mniling. and general handling.
b. If these cosls are nol identifiable with a
particular cost objective. they should be
allocaled as indirect costs 10 all benefiting
acth'itics of the organizution.
c. publir.ation and printing costs are
unuilowable as direcl Cosls except with the
priur ilpproval of the awnrding agency.
d. The cost of page charges in journals is
addressed pllragraph 28.
36. Rearrangement. and aI/era/ion costs.
CoslS incurred for ordinury or normal
rearrangemenl and alleration 01 facilities ore
allowable. Special arrangement and
alteration costs incurred specifically for the
project are allowable with the prior approval
of the awarding Bgency.
39. Reconversion casts. Cosls incurred in
the nl&toration or rehabllll8tion of Ihe
organlUltiO'n's fndlltiC1lto 8pproximately the
-'
A-122:9
same condition existing immedialely prior to
commencement of Govcrnmcnt 9wnrds. fair
wear and tear excepled. lire allowoble.
40. Recruiting cosLs. The following
recruiting CoslS are allowable: cost of "help
wanted" adverlising, operating costs of an
employment office. cosh of operating an
educntionallesting program. travel expenses
including food and lodging of employees
while engaged in recruiting personnel. travel
cost& 01 applicnnts for interviews for
prospective employment. and relor.ation COSIS
incurred incidenllo rccruilment 01 new
employees (~ee purograph 41C). \V\;ere the
organi:z:ation uses employment agencies,
costs not in excces of elandurd commercial
rilteB lor such services are nllownble.
41. Relocation casLs.
a. Relocation costs are costs incident to the
permanent change of duty assignment (for an
indefinite period or for a stuled period of not
less than 12 months) of an exi~ti:Jg employee
or upon recruitment of a new employee.
Relocalion costs ore allowuble. 6ubjectto the
limitation described In parographs b, c. and d.
below. provided thut:
(1) The move Is for the benefit of the
employer.
(21 Reimbursement to the employee is in
occordance with on established wrillen
policy consistently followed by the employer.
(3) The reimbursement does not exceed the
employee's octual [or reasonably estimated)
expenses.
b. Allowable relocation cosls for current
employees ure limited to the following:
(1) The COSt9 of transportation of the
employee, membei1l of his immediate fumily
and his household. and Ilersona1 effects 10 the
new location.
(2) The costs of finding a new home. such
as advance trips by employees and spouses
to locate living quarters and temporary
lodging during Ihe transi tion period. up to a
maximum period of 30 days. including
advance lrip lime.
(3) Closing costs. such as brokerage. legal..
n:Jd appraisal lees, incident to the disposition
oltlle employee's former home. These costs.
logether with tbose described in [4) below.
are limiled to 8 per cent of the"'sales price of
the emplo)'ce's l\lrm~ home. '.
[4) The continuing costs of ownership of
the vacant former home after the settlement
or lease date of the employee's new
permanent home. such as maintenance of
buildings and groW1ds (exclusive of fixing up
expenses), ulilities. taxes. and property
insurance.
[5) Other necessary and reasonable
expenses normaliy incident to relocation,
such as the costs of canceUins an W1expired
lease. disconnecting and reinslalling
household appliances. and purchasing
insuronce against los6 of or damages 10
personal property. The cosl of cancelling an
unexpired lease is limited to three times the
monlhly renlaL
c. Allowable relocation costs for new
employees are limited to thoBe described in
(1) and (2) of paragraph b. above. When
relocation coals incurred incident to the
recrJilment of new employees have heen
s 1I0wed eitber lUl a direct or indirecl cost and
the employee roaigns for reasons within hi!
~i .<1
. '.
....-....
."
1\
Office of Management and Budget Circular A-122 (6/27/80)
control within 12 months after hire. the
organization shall refund or credit the
Government for its share of the cost.
However the costs of travel to an overseas
location ~hall he considered travel cosls in
accordance with paragraph 50 and not
relocation costs [or the purpose of this
paragraph Ii dependents are not permitted at
the location for any reason Dnd the costs do
not include costs of transporting household
goods. .
d. The [ollowing costs reloted to relocatIOn
are unallowable:
(1) Fecs ond othnr costs associpted with
acquiring a ncw homc.
(2) A loss on the sllle of a formcr home.
(3) Continuing morllF.gc princ:paland
intcrest payments on a home heing sold.
(4) Income taxcs pllid by Iin employee
related to reimbursed relocation costs.
42. Rental costs.
a. Subject to the limitations describecl in
paragraphs b. through d. of this paragraph.
rental costs are allowable to the extcntthat
the rates are reasonable in light of such
factors as: rental costs of comparable
property. if any; market conditions in the
area; alternatives availalile;and the type. life
expectancy. condition, and value o[ the
propr.rty leased.
b. Rental costs under sale and leaseback
arrangements are allowable only up to the
amount that would be allowed had the
organization continued to own the property.
c. Rental costs under less.than.length
leases ar~ allowable only up to the amount
that would be allowed had title to the
property vesled in the organization. For this
purpose. a less.than.arms.!ength lease is one
under which one party to the lease agreement
is able to control or substanlially innuence
the actions o[ the other. Such Icases include.
bul are not limited to those between (i)
divisions of an organization; (ii) organizations
under r.ommon control through common
officers. directors. or members; and (iii) an
organization and a director. trustee. officer.
or key p.mployee of the orgiini..ation or his
immediate family either directly or tr.rough
corpnrations. trusts. or similar arrangements
in which they hold a controlling interest.
d. Rental costs under leases which create a
....aterial equity in the leased rrop~rly are
allowable only up to the amour:: that would
be allowed had the organiza tion purr:hased
the property on the date the lease agreen:ent
was executed: e.g., depreciation or use
allowances. maintenance. taxes. insurance
but excluding interest expense und oll.er
unallowable costs. For this purpose. a
material equity in the properly exists if the
lease in noneancelable or is cancelable on!v
upon the occurrence of some remote .
contingency and has one or more of the
following characteristics: .
(1) The organization has the right to
purchase the property for a price which al lhe
beg;nning of the Jease appears 10 be
substantially less than the probable fair
....arket value at the time il is pcrmitted 10
purchase the property (commonlv called a
lease with a bargain purchase option);
(2) Title to the properly pasocs to thc
organiza tion 8 t some time during or a[ler the
lease period;
(3) The term of the lease (inilial term plus
period, covered by bargain renewal options.
If any) is equal to 75 per cent or more of the
economic life of the leased property; i.e., the
period the property Is expected to be
econor:lically usable by one or more users.
43 noyalties and other costs for use of
pal "r and copyrights.
a. J iyalties on a pa ten I or copyright or
amortization of the cost of acquiring by
purchase a copyright. patent, or rights
thereto. necessary for thc proper performance
of the award are allowable unless:
(1) TIle Government has a license or the
right to free use of the pH tent or copyright.
[2) The palent or copyright has been
adjudicated 10 be invalid. or has been
administratively determincd 10 be invalid.
(3) Thc palenl or copyright is considered to
be unenforcea ble.
(4) The palent or copyright is expired.
b. Special care should be exercised in
determining reasonableness where the
royalties may have been arrived at as a reslllt
of less then arm's length bargainins: e.g.:
(1) Royalties paid 10 persons, including
corporations. affiliated with the organi::ation.
(2) Royalties paid to unaffiliated parties,
including corpora tions. under an agreement
entered inlo in conlemplation that a
Government awerd would be made.
(3) Royalties paid under an agreement
entered into after an award is made to an
organization.
c. 1n any case involving a patent or
copyright formerly owned by the
organization, the amount of royalty allo....ed
should not exceed the cost which would have
been allowed had the organization retained
title thereto.
44. Severance pay.
a. Severance pay. also commonly referred
to as dismissal wages, is a payment in
addition to re~ular salaries and wages. by
organizations to workers whose employment
is being terminated. Costs of severance pay
are allowable onl\' to the extenlthal in each
case. it is required by (i) law. (ii) employr.r.
e:npioyee agreement. (iii) eSI:)blishcd policy
that con:;lilules. in effect. an implied
agrecr.1cnt on the organi:!;ation's part. or (iv)
circ:.:tn5:aaces of tne particulOir employment.
b. CC'sts of severance payments are di,'ideu
into two calegories as foliows:
(1) Actual normaltrunover severilnce
J:ayments shall be allocated 10 all ar.livilies:
0;. where the organization provides for a
rc~erve for normal severances such method
will be acceptable if the charge to curren I
operations is rnasonable in Iir,ht of payments
actua!!}' made fur normal seVp.rances over 11
representative past period. and if amount~
ch~ri1zd are allocated 10 all activities of the
organization.
(2) Abnormal or mass severance PLlY is of
such a conjectural nature that measurement
of costs by means of an a~crua: will nC't
<:chieve equity \0 both parties. Thlls. accruals
for this pu'pose are not allowable. However.
the Government recogni7.e~ i:s obligation to
participa!e to the e}:lent of ;ts [air share. in
l1ny specific payment. Thus. allowabilily will
be considered on a case-by-case basis in the
event of nccurrcnr.e.
45. Speciali.~ed sen'ice facilities.
11. The costs of services provided by highj~.
I
A-122:10
complex or specialized facilities operAted by
the organization. Bueh as electronic
computers and wind tunnels. are allowable
provided the charges for the services meet
the conditions of either b. or c. of this
paragraph and. in addition. take into account
any items of income or Federal financing that
qualify as applicable credits under paragraph
A.5. of Attachment A.
b. The costs of such services. when
material. mllst be charged directly to
applicable uwarus based on actual usage of
the sCfvices on the basis of a schedule of
rales or established methodology that (i) docs
nol discriminnte against federally supported
octivilies of the organization. including usage
by the organization for internal purposes. and
(ii) is designed 10 recover only the aggregate
costs of.lhe services. The cosls of each
service shull consist normally of both its
direct costs ~nd its allocable share of 011
indirect costs. ^dvanr.e agreements pursuant
to parugraph A.5. of Attuchment A ore
particularly important in this situalion.
c. Where the costs incurred for a service
Are nol material. they may be allocated as
Indirect costs.
40. Taxes.
a. In general. taxes which the organiza lion
'5 required 10 pay and whi:;h are paid or
accrued in accordlince with gencrally
accepted accounting principles. and
payments mode to local governments in lieu
of taxes which are commensurale with the
local government services received are
allowable. except for (i) laxes from which
exemplions are available to the organization
directi\' or which are avail:Jble to the
organi~ation based on an e:>.emplion afforded
the Governmcnt and in the latler case when
thc awarding agency makes available the
np.ce~sary cxemption certificates. (ii) spccial
assessments on land which represent capital
improvements. ~nd [iii) Federal incomc laxeS.
b. Any refund of I<,xes. and any p'lymcnt to
the or~anization of interest thereon. which
were allowed as award costs. wll! be
credited either as a cosl reduction or cush
refund. as appropriate. to the Govr.rnl11cnl.
47. Terminution costs. Terminati6n of
awarus generally give rist. to the incurr~ill;(;
of cosl~. or the need for speci.!1 trentment of
cosls. which would not have arisen hod the
aW:lrd not been tcrminaleG. Cost principies
clJvcring thesc items are sct forlh below.
They ore 10 be used in conjunction wilh the
.othnr provisio;'ls of this Circular in
terminalion situations.
a. Cornman items. The cusl of items
reason~~ly usable on the organization's olher
wOlk shall not be a!lowable unlr.ss the
orRnr.izalion submits evidence that it would
nol retain such ilems at cost without
sustaining a loss. In deciding whether such
ilems are reasonably usable on otner work of
the organization. the awaruil:g agency shouid
consider the organizalion's plans and urders
for current and scheduled activity.
Contcmporaneous purchases of common
items by the organizalion shall be rr.!1i1rded
os cvidence that such items are reasonnbly
usable on the organizalion's :J\her wurk. Any
acceptance of common items as aliocabJr. to
the lerminated portion of the awnrd shnll be
hmiled to the r.xtentthal the qllunlili"s of
~ .
<l
, ,
.
I~
Office of Management and Budget Circular A-122 (6/27/80)
such items on hand. in transit. and on order
are in excess of the reasonable quantitative
requiremenlll of olher work.
b. Casu continuing after termination. U in
a particular case, despite all reasonable
efforts by the organization.. certain COSlS
cannot be discontinued immediately alter the
effective dale of termination. such caslll are
generally allowable within the limitations Bet
forth i.:l this CirculIlI. except that any such
costs continuing alter termination due to the
negligent or willIuIlailure olthe org8J1ization
to discontinue such costs shall be
unallowable. .
Co Loss of L'seful value. Lou of useful value
of special tooling, mochincry and equipment
wr:-:h was not charged 10 the award as a
c.;J".;al expenditure is generally allowable if:
i:. Such speciallooling, mac~inery, or
eq. :pment is not reasonobly capable of use in
tlF. dber work of the organization.
[:'l The interest of the Govemme:1t is
;:,~r Jr:t?d by transfer ol title or J.y other
o\(':I:1S deemed appropriate by the awarding
a~' ney:
Ii. Rental costs, Rental costs under
u:"l:xpired leases are generally allowable
">llre clearly shown to have been
tl,...~onably necessary for the performance of
It:" terminated award less the residual value
or such leases. jf (i) the amon.,t of such rental
ci..imp.d does not exceed the reasonable use
vabe of the property leased lor the period of
the ~w"rd and such further period as may be
r~.,.;IJ1:,;ble, and (ii) the orgllruzation makes
all reasonable efforts to terminate, assign,
seltle, or otherwise reduce the cost of such
lea Be. There also mav be included the COBt of
allerations of such le'ased property, provided
Buch aJ:erations were necessllI)' for the
performance of the awarrl. and of reasonable
restor;:; tion required by the provisionll al the
leo~e.
e. Settlement expenS8S. Settlement
expenses including the following ano
generally allowable:
(1) Accounting. legaL clerical. and simillll'
costs reasonably necessary for.
[a) The preparation and presentation to
awarding agency of settlement claims and
supporting data with rcspect to the
lerminated portion of the award. unless the
lermination is jor default. (See parllg:raph 4.8.
oj Attachment 1.. OMB Circular No. A-i10:
and
[b) The tenninalion acd settlement ol
subawards.
(2) Reasonable cosu for the storage.
lranspol'tatiot'_ protection.. aod dispositioo of
property provided by the Government or
acquired or produced for L~e aware:.: except
when grantees are reimbuned for disposili
at a predetermined amount in accordan~
with Attachment N of OMB Circujar A-ll0.
(3) lndirect COBts related to s<llaries and
wages incurred as settlement expenses in
subparagraphs (1) snd 12l of this paragraph.
Normally, suc.h indirect coslll shall be limited
to fringe beneIiu, occupancy COBL and
immedia te supervision.
r. Claims u..,der subowora's. Claims under
subawards. including the aUoca ble portion of
claims which are common to the award. and
to other work of the organi:::.alion are
generally allowable. An appropriate share of
the organization's indirect expense may be
allocated to the amount ol settlements with
subcontractor Isubgraotees: provided that the
amount allocated is otherwise consistent
with the basic guidelines contained in
Attachment A. The indirect expense so
allocated shall exclude the same and similar
costs claimed directly or indirectly as
settlement expenses.
48. Training and eduCDtion coats.
a. Coslll of preparation lIJld maintenance ol
a program oC instruction including but oot
limited to on-the-job, clasaroom. and
apprenticeship training. designed to increase
the vocaUonal effectiveneu of employees,
including training materials, textbook".,
salaries or wages ol trainees (excluding
overtime compelUlation which might ari~
therefrom). and (i) salaries ol the director ol
training and stall when the training pros=
is conductl:d by the organi%ation; or (ii)
tuition and fees when the training is in an
inatitution not operated by the organization..
are allowable.
b, Costs oC part-time education.. at an
undergraduate or postgraduate colle~ leveL
including that provided at the organization'.
own facilities. are allowable only when the
COlU'"3e or degree pur:rued is relative 10 the
field in which the employee is now working
or may reasoDably be expected to work. and
are limited to:
(1) Training materials_
(2) TextbookB.
'(3) Fees charge:t by the educational
institution.
(4) Tuition charged by the educational
inatitution. or in lieu ol tuition. instructors'
salaries and the related share of indirect
costs ol the educational inatitution to the
extent that the sum thereof is not in excess ol
the tuilion which would have ben paid lo the
participa ting educational institution.
[5} Saiurie. and releted costs of instructors
who are employees ol tha Organiz.atiOL
(6) Straight.time compensation of each
employee jor time spent attend.iog classee
during werking hours oot in excesa oC 156
holU'"3 per year and only to the extent that
circumstGn~ do not permit the operation ol
classes or attendance at classes aiter regular
working hours: otherwise such compelUlation
is unallowable.
Co C.:lSlll of tuition. fees. traini.:lg matmals.
and textbooJu; (but not subsistence. BOilaI'Y, or
any other emoluments) in connection with
full-time education. including that providcd at
the organization's own facilities. at a
postsraduate (but not undergraduate) college
leveL are allowable onlv when the coune or
degree plU'"3ued is relate'd to the field in which
the empioy~ is now working or msy
reasonably be expected to work. aod only
where the coslll receive the prior approval of
the awarding agency. Such cost" are limited
to the costs attributable 10 a total period not
to exceed one school year for each employee
50 trained. In unusual cases the period may
be extended.
d. Costs ol attendance of up to 16 wel:k3
per employee per year at specialized
programs specificaJJy designed to enhancc
the effectiveness of exet:Uoves or ma=gen
or to P"lpare employees for BUch positions
are allowable. Such cos~ include enrollment
I
A-122:11
fees. training materials. textbooks and
related charges. employees' Balarie&.
subsistence, and trevel Cost" allowable
under this paragraph do not include thOIH! Cor
courses that are part of a degree-oriented
cunicwum. which are allowable only to the
extent set forth in b. and c.. above.
e. Maintenance expe!l3e. and normal
depreciation or fair rental on facilities
owned or leued by the organization for
training purposes are allowable to the extent
sP.t forlb in paragraphs 9, 22. and 42..
f. C:mlributions or donations to
educational or training institutions, including
tte donation of facilities or olher properties.
anJ 8cholarships or fellowships, are
unallowable.
g. Training and education cos18 in excess 01
those otherwise allowable under paral)l"aphs
..,b. and c. of this paral)l"aph may be allowed
wilh prior approval oCthe awarding agency.
To be considered for spproval. the
organization must demonstrate that such
costs are consistently incurred plU'"3uant to an
eSlilblished training and educa:ion program,
and that the COlU'"3e or degree plU'"3ued is
relative to tho field in which the employee is
now working or may reasonebly be expected
10 wory_
49. Transportation casu. Transportation
Custs include freighL express. cartage. and
postage charges relating either to goods
purchased. in process, or delinred. These.
costs are allowable. When BUch costs can
reedily be identified with the iteDUl involved.
they may be directly charged 88
transporta tion cosu or added to the cost ol
such items (see paregraph 23). Where
identification with the materials received
canno~ readily be made. transportation costs
may be charged to the appropriate indirect
cost accounts if the organization follows a
consistenL equitable procedure in this
re:!pe':.:L
50. Travel costs.
a. Travel costs are the expenses lor
transportation, lodging. subsistence, and
related items incurred by employees who are
in travel status on official business of the
organizntion. Travel costs are allowable
subject 10 paragraphs b. iliro1,1gh e. below,
when they are cmectly attributaole to specific
work under an sward or.are in~ in the
normal course of administration ol ths
organization.
b. Such costs may be charged on an actual
bllsis, on a per diem or mileage basis in lieu
of actual cosU incurred. or on a combination
of the tWo. proTided the method U.ged resul18
in ch81]es consistent with those normally
allowed by the organiza tion in its regular
opera tions.
c.. The difference in cost between first-class
air acco=odations and less than firsl-claas
air accommodations is unallowable except
when less than firs:-class air
accoll"Jnoda tiO!l3 a.-e not reesona bly
available to meet necessary mission
requirements, such as where less thaD fiI'St.
class accommodations would (i) require
circuitous routing. (i1) require travel during
unreasonable hours, (iii) sreatJy increase tho
duration. of Ihe fiight. (iv) result in additional
cosls \':hich would efrsel the transporta Uon
savir:gs. or (v) ofTer nccomrnodn tio'ns which
';. h~' "..
-L-
Jfflce of Management and Budget Circular A-122 (6/27/80)
,re not reasonably adaquatll for the meilical
,~dB or the truvele1',
d; Necessary and masooabt1l cost. o(
amily movemenll and pel'1lonnel movement.
;[ 8 special or man nature are allowable..
Our:luant to paragrap~ 4{) and 41. subject to
dlocation on the basis of work or lime period
Jer.ented wheo appropriate. Advance
:greements are particularly importanL
e. Direct charges for foreign travel cosh are
dlowable only wheo the travel has received
xior approval of the awarding agency. Each
'eparate foreign trip must be approved. For
Jurposes of this provision. foreign Ira vol is
:enlled as any travel outBide of Canada and
~e United States and its tenitories and
JossesGions. However, for BO ol"8anization
ocated in foreign countries. the term "foreign
ravel" mean! travel oulllide thaI country.
Circular.No. A-l22]
.\llacbmeol G
.'<onprofil Organizations not Subj&ct to this
CJcu lar
.\erospace Corporation. El Segundo.
California
.A.r6onne Universities Association. Chicago.
Illinois
Associated Universities', Incorporated.
Washington. D.C.
Associated Universities for Research and
Astronomy, Tucson. -'''-rizona
Atomic Casualty Commission. Washington.
D.C.
3aitelle Memoriallnslitute, Heedquartered in
Columbus, Ohio
3rook.haveo National LaboratolJ', Upton.
New York
Center lor Energy and Environmental
Research (CEER), (University of Puerto
Rico)
Commonwealth oIPuerto Rico. Charles St.a;k
Draper Laboratory, Incorporated
Cambridge. Massachusetts. Comparative
Animal Research LaboratolJ' (CARL)
:"Jnive:-sity of Tennessee), Oskridge,
Ter~.,e~Gee
:::1\"iromnenlalInstitule of Michigan. Ann
Arbor. Michigan
:;ar.ford Environmental Health Foundation.
Richland. WaGhington
Lj R~search Institute, Chicago. illinois
i;l~lilute lor Defense Annly!;is, Arlington.
Vi16inia
bstitule of GaG Technology, Chicago. Illinois
~{jdwesl Research Institule, Headquartered
in Kunsas City, Missouri
:.!ilre Co,poraticn. Bedford. MaGsachlllletts
:,jonlana Energy Research and Development
Institute, lne... (MERDI), Bulte. Montana
>;aticna] Radiological Astronomy
ObservatolJ', Green Bank. West Virginia
Dakridge Auociated Universities. Oak.-ic4"l!.
Tennessee
r.oject Management Corporation, Oakri~c..
Ter-wessee -
?and Corporation. Santa Monica, California
:::"esearch TriaI18le L'1stitute, Researc.'l
Triangle Park. North Carolina
?ive:-side Research In.stitute, New York. New
York
5.anc:.:a Corporation. Albuquerque. New
\.fny;""n
Southern Rellearch Institute. Birmingham.
Alabama
Southwest Research lnstitute.. San Antoc1o..
Texas
SRlIntemationsl Menlo Park. Caillornia
Syracuse Relle&n:h Carporlltion. S)T8ctae,
New YorX
Universities Research AnociaUon.
Incorporated (National Accelel'BUon Lab).
Argonne, Dlinois
Universities Corporation for Atmospheric
Research. Boulder, Colorado
Nonprofltlnsurance Companies Neb as Blue
Cross and Blue Shield Ol"8nnizaUons
Other nonprofit organizations as negotiated
with awarding egencies,
[FR Doc. 80-= mod , -7-<<1; 8:45 0'" J
8Il.J.JH.:O COOE 311 CHI 1"""
Editorial Corrections to
OMS A.122
OFFICE OF MANAGEMENT AND
BUDGET
Circular A-122, "Cost Principles 10(
Nonprofit Organizations"; Correction
AGENCY; Office of Management and
Budget.
ACTION: Final policy correction,
SUMMARY: This notice corrects errors in
the printing of cost principles for
nonprofit organizations. (45 FR 46022.
July 8, 1980).
FOR FURTHER INFORMATION CONTACT:
Palmer Marcantonio, Financial
Management Branch, Office of
Management and Budget, Washington.
D.C. 20503, (202) 39H773.
. Page 46022, calumn 2 the sec:ond
Pdragraph 1, change Paragraph 5
"Compensation for Personnel Services"
10 Paragraph 6.
. Page 46022. column 2 the second
Paragraph 2, change Paragraph 6
"Contingencies" to Paragraph 7.
. Page 46022. column 3:
Paragraph 4, change Paragraph 31,
"Equipment and Other Capital
Expenditures" to Paragraph 13.
. Paragraph 5, change Paragraph 26
"Meetings" to Paragraph 24.
. Paragraph 6. change Paragraph 27,
"Organization Costs" to Paragraph'20.
. Paragraph 7, change' Paragraph 30
"Page charges in Professtional Journals"
to Paragraph 28.
. Paragraph 8. change paragraph 37
"Public Information Service Costs" to
Paragraph 36.
. Paragraph 9, change Paragraph 43
"Rental Costs" to Paragraph 42.
. Paragraph 9a: in the fourth line, add
"up" between the words "only" and
"10"; in the sixth line change "they" to
"it".
. Parngraph 10. change Parugraph 51
"~':'-""~":r'1 r(j~ls" In P;'f:1f';;"lnh :In.
.1'-
A-122:12
. Page 46024, column 3 Paragraph
4(a)(2) after "benefits received" add ";
or".
. Pope 46025. column 1 Paragrnph IJ3,
change the relerence "Paragraph 21 of
Attachment B" to "Paragraph 19 of
Attachment B."
. Page 46026. column 1 Paragraph
4a.iii. in the sixth line, change "direct
cosl" to "direct cosls."
. Page 46026, column 2 Paragraph
Ele. change "e'stablishment of a rale" Lo
"establishmenl of a final raLe."
. Page 46026. column 3 Paragrnph
E2b. in the third line add the following
afler "a Federal agency shall"-"submit
its initial indirect cost proposal
immedia tel\'."
. Pojte 4{x'J27. column 3 Paragraph
(3)(a). change "workmen's
compensation" to "workerF'
compensation."
. Page 46028. column 1 Paragraph
6f3(b), (the second line of column 1)
change "Workmen's compensation" to
"workers' compensation."
. Page 4(J(J30, ~olumn 3, paragraph
24b.. the sixth line, change "allowable"
to "allowability".
Doniel f. Maon,
Dudgrt and Management Officer.
IF'R Doc. 81-8073 Filed J.-16-ll1: ~45 oml
BIUJNG COOE: 3' l00-()l-M
Circular A-122, "Cost Principles for
Nonprofit Organizations"
Correction
In FR Doc. 81-20270, appearing at
page 46022 in the issue of Tuesday, July
6. 19M, the following changes should be
made:
1. On page 46024. column Ihree, tbe
second sentence in paragraph 'A.5.b.
should read, "Specific8!lly, the concept
of netting such credit items against'
related expenditures should be applied
by the organization in determining the
rates or amounts to be charged Lo
Federal awards Tor services rendered
whenever the facilities or other
resources used in providing such
services have been financed directly, in
whole or in part, by Federal funds."
2. On page 46024, column three, the
second complete sentence in paragraph
A.5. should read, "This is particularly
true in connection wi th organizations
thai receive a preponderance of their
support from Federal agencies."
3. On page 45025, column one,
paragraph B.2. shouid read, "2. Any
direct cosL of a minor amount may be
trea led as an indirect cost for reasons of
practicality where the accounting
trenlmenL for such cost is consistently
npn!!pd tn nil final r:o~t nhirc:tiv('~"
k ~
. ..
\
. .
,
>",~ '...
Office of Management and Budget Circular A-122 (6/27/80)
4. On page 46025, column ODe,
paragraph B.4.f. should read. "f.
Administration of group benefits on
behalf of members or clients including
life and hospi tal insurance, annuity or
retirement plans. financial aid, etc."
5. On page 46025, column two, the first
sentence in paragraph D.l.e. should
read, "The base period for the alloca lion
of indirect costs is the period in which
such costs are incurred and acc\lmuluted
for allocation to work performed in thut
period."
O. On page 4G020. column one. the
second sentence in paragraph D.3.d
should rend, "The costs in the common
pool shall then be distributed to
individual awards included in tho t
function by usc of a single indirect cost
rate."
7. On page 46020, column one, the first
sentence inpuragraph D.3.e. should
read, "The distribution based used in
computing the indirect cost rate for each
function may be lotal direct costs
(excluding capital expenditures and
other distorting items such as major
subcontracts and subgrants). direct
:;alariesand wages, or other base which
results in an equitablc d'istribution,"
B. On page 46020, column one. the first
and second sentences in paragraph
D.4.a. should read, "Some nonprofit
organizations treat all costs as direct
costs except general administrution and
general expenses. These organizations'
generally separate their cosls into thrp.c
basic cate/2ories:' . .,"
9. On page 46020, the last sentence in
column one (extending to column two).
in paragraph 0.5. should read. "The
factors may include the physical
10ca tion of the work. the level of
administrative suppor~ required. the
nature of the fa.cilities or other resources
employed. the scienlific disciplines or
technical skills involved. the
organizo lional arrangements used, or
any combination thereof."
10. On page 46026. column three.
paragraph E.2.i. should read. "i. To the
extent that problems are encountered
among the Federal agencies in
connection with the negotiation and
approval process. the Office of
Management and Budget will lend
assistance as required to resolve such
problems in a timely manner,"
11. On page 46030, column one. the
introductory text of paragraph 16.0. and
paragraph 16.b.(1) should read. "b. The
cosls of idle facilities are unallowable
except to the extent that: (1) They are
necessary to meet fluctuations in
workloads: or".
12. On page 46030. column one. the
second sentence in paragraph 16.c.
should read. "Such costs are allowable,
provided the capacity is reasonably
anlir.ipaled 10 be necessary or WIlS
originally reasonable and is not subject
to reduction or elimination by subletting,
renting. or sole, in accordance with
sound business. economics or security
practices."
13. On page 46031. second column.
paragraph 34..c. should read, "In addition
to the factors in paragraph b. above,
retainer fees to be allowable must be
supported by evidence of bona fide
services available or rendered,"
PILUNO CODE lSOS-01-M
. I
A-122.:13
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