AGREEMENT FUNDED UNDER THE CLEARWATER COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM
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AGREEMENT FUNDED UNDER
THE CLEARWAT~ COMMUNITY DEVELOPMENT
BLOCK GRANT PROGRAM
THIS AGREEMENT is entered into as of the 1st day of October, 1988, by the
CITY OF CLEARWATER, Florida, a political subdivision of the State of Florida,
hereinafter referred to as the "CITY., and COMMUNITY SERVICE FOUNDATION, 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-llO,
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-110,
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 performed 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 ~re 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 meannonexpendable 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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~ 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. PSAwill comply
wi th 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.
19. The City may suspend, withhold, or terminate payment of the project, in
whole or in part, for cause or convenience. Cause shall included the following:
a. Use of funds that does not follow project guidelines.
b. Failure to comply with any term or condition hereunder.
c. Refusal to accept conditions imposed by BUD.
d. Refusal to accept conditions imposed by the City.
e. Submittal of reports which are incorrect or incomplete in any material
respect.
f. If carrying out this Agreement is rendered impossible or
infeasible for any reason including changes in law or the
unavailability of BUD funds necessary for continuation.
g. Convenience shall be according to the regulations in 24 CFR 85.43 and
85.44.
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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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, 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 BUD 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 SERVICE FOUNDATION
By
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Secretary "
CITY
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Ron H. Rabun
City Manager
By
Rita Garvey
Mayor-Commissioner
Approved as to form & correctness:
ATTEST:
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Agency: Community Service Fndtn.
Year: 1989 - 1990
APPENDIX A
Identification of Aaencv and Snecific Services to be Provided
AGENCY
Name:
Community Service Foundation
Legal classification:
A non-profit corporation organized and existing under
the laws of the State of Florida.
Principal Office:
111 South Garden Avenue, Clearwater, Florida 34616
Mailing Address:
III South Garden Avenue, Clearwater, FL 34616
Agent:
Charles D. Mann, Executive Director
813-461-7821
PROGRAM OF AGENCY
The Community Service Foundation is a community based organization providing a
broad range of services and advocacy on issues affecting community improvement,
homelessness, and low and moderate income families and individuals.
SPECIFIC SERVICES TO BE PROVIDED UNDER THIS AGREEMENT
The Community Service Foundation will continue to provide a Central Housing
Assistance Service counseling and assistance program which includes the following
elements:
1. Housing Placement
2. Rental Listings
3. Emergency Rental Assistance
4. Emergency Utility Assistance
5. Pinellas County Social Service Emergency Rent Checks
6. Referrals for Various Human Services
7. Fair Housing Education
The Pinellas County Community Development Department is the LEAD AGENCY for all
agencies funding the Central Housing Assistance Program of the Community Service
Foundation for this Agreement. Specific program accomplishments and monitoring
are as determined in further detail by the agreement between Pinellas County and
the Community Service Foundation. Reports will be sent by the Community Service
Foundation directly to the City, in addition to any report copies which are sent
directly to Pinellas County.
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SCHEDULE
All of the SPECIFIC SERVICES will be completed as determined by the agreement
between Pinellas County and the Community Service Foundation and will be
consistent with the time specified in the paragraph 2. of page 1 of this
Agreement.
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Agency: Community Service Fndtn.
Year: 1989 - 1990
APPENDIX B
Proiect Award
Funding by the City of up to $39,300.00 will be provided for operating support,
including personnel, equipment and supplies, and other operating expenses.
TOTAL $39,300.00
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APPENDIX C
METHOD OF PAYMENT
All payments shall be on a reimbursement basis only.
All requests will be submitted to the Pinellas County Community Development
Department. The Pinellas County Community Development Department will disburse
the full appropriate payment and will in turn request of and receive from the
City the appropriate pro-rata share.
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 Pinellas County who will forward the
pro-rata share to the CITY 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-Dther Progrllm
Requlrementa
I 570.600 Gell')Cral
(0) Section l04(b) tr the Act provides
thot an)' grant under ~ection 106 of the
Act shall be rr. .c' nly if the gronlee
certifies to the suliduclion 01 the
Secreta'ry. among other things. thol the
grQnl "willlie.conducled ond
administered in conlormity WiUI rub. L
B8-352 and Pub, L. OO-2~," and. further,
thol the granlee "will comply with the
olher provisions of this title and with
other applicable laws." SectioD 10-l[d)(1)
of the Act requires thai the Secretary
dt:terminc with respect to grants made
pursuant to scction 100(b) [Entitlement
Grants)and106[d)[2)(B) (HUD-
Administered Small Cities Grants). at
least on an annual basis, among other
things. "whether the grantee has carried
outpts) 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
10 activities assisted under the Act by
the Act itself. while other laws not
referrcdlo in the Act IDay be applicable
to such activities by their own terms.
Cerlain statutes or Executive Orders
which IDay ue applic.oble to activities
assisted under the Act by their own
terms are administered or enforced by
governmental departroenu or agencies
other than the Secretary or the
DcpartmenL This Subpart K enumerates
laws which the Secretary wiD treat as
applicable to grants made under section
106 of the Act, other than grants \0
) APPENDIX D
OTJER PROGRA}1 REQUlRE~lliNTS
States made pursuant to section l06{d)
of lhe Acl. for purposes or the
delermination! descriued above to ue
made hy the Secretary under section
l04(d)(1J or the Act. including statutes
cxpressly mode applicable hy the Act
Bnd certBin other stBtules IInd Executive
Orden for which the Secretary has
enforcement responsibility. The absence
of mention herein of Dny other stBtute .
for which the Secretory docs not hove
direct enforcement responsibility is not
intended to be token as Bn indicotion
Ihal. in the Secrelary's opinion. such
statute or Executive Order Is nol
spplicable to Bctivilies ossisted under
Ihe Acl. For lows which the Secretory
will treat BS applicable to grants mBde
to Statcs under section l00[d) of the Acl
for purposes of the determino tion
required to be made by the Secretory
pursuontto section 104[d)[2) of the Act,
see ~ 570.496.
(b) This Subpart also sets forth certain
additional progrBm requirements which
the Secretary has determined to be
applicable to grants provided under the
Act as a matter of administrative
discretion.
(c) in addition to grants made
pursuant to section 100(b) Ilnd
100(d)(2)(B) of the Act [Subparts 0 and F
of this Part. respecti)'ely), the .
reouirements of this Subpart K are
applicable to grantsIDade pursuanlto
sections 107 and 119 of the Act
(Subparts E and G, respectively).
~ 570,601 Pub. L 88-352 and Pub. L !to-
284; Executive Order 11063-
Section 10-l(b) of the Act provides that
any grant under section 100 of the Act
shall be made only if the granlee
ce'rtifies to the I>a tisfaction of the
Secretary that the grant "will be
conducled and administered in
conformity with Pub. L ~52 and Pub.
L. 90-284." Similarlv. section 107
provides that no gr~rit IDa)' be made
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under thBt teclion (Secretary'.
DiscretionBry Fund) or eection l1Q
(UDAG) v.'ithout tatisfaclory assurance,
to' the same effect.
[a) "Pub. L ~52" relerl \0 Tille VI
of the Civil Rlghts Act 011004 [42 U.S.C,
2000d' el leq.), ,,'hich provides Ulat no
person In the United Stotes sholl on the
ground of rBce, color. or notional origin,
be excluded Irom porticipntion In, be
denied the benefits nf. or be suujected to
discrimination under any program or
actlvlly receiving Federal financial
o,sislanca.Section 502 of the Civil
Rights Acl of 10(}.4 wrcc18 eBch Federal
depnrtment nnd agcncy empowered to
extend Federal finoncialassislonce to
any program or activit)' by way of granl
to effectuate the foregoing prohiuilion
by issuing rules. regulalions. or orders of
general opp\lcobility which sholl be
consistent wilh achievement or the
.. stolule authoriLiIlB the financial
assistance. HUO regulollons
implementing the requirements of Tille
VI with respect to HUn progrom' are.
contained in 24 crn Parl1.
(b) "Pub. L 90-2.lH" relers 10 Title VI1I
of the,Civil Righls Act of 1968[42 U,S.C.
3GOl el Geq.), popularly known as the
Fair Housing Act. which providc, that il
is the policy of the United Stales to
provide. v.'ithin constitutional
limitaLions. for fair housing throughout
the United States and prohibits nny
person from discriminating in the sale or
rental of housing, the flOancing of
housing. or the provision of brokerage
services. Including in any we)' making
unavailable or denying a dwelling 10
any.person. because of race. color.
religion, sex. or national origin, Title
VIJI further requires the Secreta!)' to
administer the programs and Bctivities
relating to housing and urban
developmentln a manner affirmatively
10 further the purposes of Tille VllI.
Pursuanlto this statutory direction. the
Secretary requires that grantee'
sdminister all programs and actiyities
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relaled to housing and community
de\'elopm~nt in e manner 10
affirrnulively lurlher Illir housing.
(c) Execulive Order 11003. as
nmended by Executive Order 12259.
directs the Deparlmentlo luke all ;!ction
necessary end uppropriale to prevenl
discriminotion because of race. color.
religion (creed). sex. or national origin.
in the sale. leasing. renlal. or other
disposition 01 residentiul properly and
reluted facilities (including land 10 be
developed for residenlial use). or in the
use or occupa ncy thereof. if such
properly and relnted lucilities ore.
umong other things. provided in whole
or in part with the aid of lonns.
iJdvnnces, grants, or cuntrihulions
II Rrce\i.to be made by Ihe Federal
Government. HUD rcgulalions
implementing Execulive Order 11003 are
conlained in 24 CFR Part 107.
~ 570.602 Soctlon 109 ollh. Act.
(n) Section 109 of Ihe Act requires that
no person in the United Slales shall on
the ground of race. color, national origin
or sex. be excluded from participation
in. be denied the benefits of. or be
subjected to discriminalion under. any
program or activity funded in whole or
in part with community development
funds made available pursuant to the
At:t. For purposes of this section
"program or activit,.-' is defined as any
lunction conducted by an identifiable
administrative unit of the recipient. or
by any unit of governme~t, ~ubrecipient.
or private conlractor receiving
community development funds or lonns
from the recipient. "Funded in whole or
in pari with community dev.elcpment
funds' means thai community
development funds in a:1Y amount in the
form 01 grants or proceeds from BUD'
guaranteed loans have beeD..transferred
by the recipient or a subrecipientto an
idenlifi&ble administrative unit and
disbursed in a program ;:;r acth'ity.
(b) SpeCific discriminatory actions
prohibl/ed and correcti\'e actions. .
(1) A recipient may not, under any
program or activity 10 .....hich the
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regulations of this Pari may apply
directly or throufh contractual or other
IIrrangrmcnts, on the ground o[ race.
color. national origin. or 8ex:
(i] Deny allY facilities. scrvices,
[innncial /lid or other benefits pro\'ided
under the progrum or activity.
(ii) Provide ony fncilities. 8ervices.
financialnid or other bendit8 .....hich ore
different. ur ure provided in II different
form Irom thut provided 10 others under
the program or octivity.
(iii) Subject 10 se.gregated or 8epornte
trentment in ony fucility in. or in OilY
mailer of proccss relnt~d to receipt of
any Bervice or benefit under the program
or oclivity.
(iv) Restrict in any woy access \0. or
in Ihe enjoyment of any advantage or
privilege enjoyed by others in
connection with facilities. services.
financial aid or other benefits under the
program or Bctivity.
[v) Treat an individual differently
from others in determining whcther the
individual Ba tisfies any odmission.
enrollmcnt. eligibility. membership, or
other requirement or condition which
the individual must mect in order to be
provided any [acilities. services or other
benefit pro\'ided under the program or
activi:v.
(vi) Deny an opportunity to participate
in a progr&m or activity as ao employee.
(2) A recipient may not utilize criteria
or methods of administration which
ha ve the effect of subjecting individuals
to discrimina tion on the basis of race.
color. national origin. or sex. or have the
effect of defcating or substantially
impairing accomplishment o[ the
objectives of the program or activity
with respect to individuals of a
particular race. color. national origin. or
sex.
(3) ^ recipient. in determining the site
or localion of housing or facilitics
provided in whole or in part wilh funds
under this part. may not make selections
of such site or locn tion which have the
effect of excluding individuals from.
denying them the benefits of. or .
subjecting them to discrimination on the
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ground 01 race. clllor. national erigin, or
sex: or which hAve the purpo~e or effect
01 dcfcutinR or substuntia\ly impuiring
Ihe acr.uOlplishmenl of the objectives cl
the Act and 01 this seCtion.
(4)li} In odministcring 8 program or
activity funded in whole or in pnrt with
CD~C funds rcgnrding which the
recipient hns pre\'iously discriminotcd
ogainst pcrsons on the ground 01 race,
color. no tionul origin or sex. the
recipient mustloke offirmotive action to
overcomc the effects of prior
di~criminntion.
(ii) Evcn in the absence of such prior
discrimination, a recipient in
administering a progrnm or activity
lunded in whole or in part with CODC
lunds should tuke affirmativc action to
overcomc the effects of conditions
which would otherwise result in limiting
participntiun by persons of a parlit:ular
race. color, national origin or sex.
Where previous discriminatory praclice
or uSllge tends. on the ground of race.
color. nalional origin or scx, to exclude
individuals from participation in. to
deny them thc benefits of. or to subjecl
them to discrimination under any
program or activity to which this pari
applies. the recipienfhas an oblig<:tion
10 take reasonable action to remove or
overcome the consequences of the prior
discrimina tory prl:lctice or usage, end \0
accomplish the purpose 01 the Act.
(iii) A rccipient shall not be prohibited
by this part from taking any action
eligible under Subpart C to ameliorate
an imbalance in services or facilities
provided to any geographic area or
spccific group of persons within its
jurisdiclion, where the purpose of such
action in to overcome prior
discriminatory practice or usage.
(5) Notwithstanding anything to the
contrary in this section. nothing
contained herein shall be construed to
prohibit any r~cjpient from maintaining
or conslructing separate living facililie~
or rest room facilities for the different
scxes. Furlhermore. selectivity on the
basis of scx ia not prohibited when
inslitutional or cllstodial services can
,"
"
'1 APPENDIX E
SECTIOH 3 CLAUSE
I
I
TIlE FULLO'WING SECTION 3 CLAUSE SHALL 13E INCLUDED IN ALL CONTRACTS FUR 'WORK IN
CONNECTION 'WITH A SECTION 3 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 l~partment of Housing and Urban Development and is subject to the
requirements of Section 3 of the Housing and Urban Development Act of 1968,
as amended, l2 V.S.C. l70u. Section 3 requires that to the greatest extent
feasible opportunities for training and employment be given lower income
residents of the project area and contracts for ....ork in connection with the
project be awarded to business concerns ....hich 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 2~ 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 would 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 or training.
D. The contractor \.Jill include this Section 3 Clause in every subcontract for
....ork in connectiqn ....ith the project and ....ill, 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 ....ill not subcontract ....ith any subcontractor
where it has notice or kno....ledge that the latter has been found in violation 'of
regulations under 24 CFR, and ....ill not let any subcontract unless the
subcontractor has first provided it ....ith a preliminary statement of ability to
comply ....ith the requirements 0 f these regulations.
E. Compliance ....ith 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 Feder!l 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 2~ CFR l35.
E-l
APPENDIX F
NOTICE 01 ._"QUlREMENT FOR JJTIR"V\TlVE ACTI
TO ENSURE EQUAL DiPLOYMENT OPPORTUNI TY
(EXECUTIVE ORDER 11246)
1. The Offeror's or Bidder's attention is called to the "Equal Opportunity
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 const-~ction work in the covered area, are as follows:
A. Goals for Female Utilization, ~11 Trades:
AREA COVERED
Goals for Women apply nationwide.
GOALS AND 'TI1"l.ETABLES
TiJnetable
Goals
(percent)
F:::-om Apr. 1, 1978 until 1-1ar. 31, 1979.... 3.1
From A p:::-. 1, 1979 until Mar. 31, 1980.... 5.1
From Apr. 1, 1980 until Ha:::-. 31, 1981. . . . 6.9
B. Goals for P~noritv U~lization:
TA.'1PA-ST. PETEP..5BURG, FLA., AREA
Area covered: P~llsborough, Pasco, and Pi~el1as
Counties, Fla.
Goals and TiJnetablesl
Trade
Goal
(pe:::-cen t)
.
All. . . . . . . . . . . . . . . . . . . . . . _ . . .
17.9
lFor the life of the project.
~nese goals are applicable to all the Contractor's const-~ction work
(whether or not it is Federal or federally assisted) performed in the
covered area.
~e Contractor's co~pliance wi~ the Exec~~ve Order and ~~e regulations
in 41 C?R Part 60-4 shall be based on its i~pleroentation of the Equal
Opportunity Clause, specific affi:::-mative action obligations recruired by
F-l
the specifications ~et: forL~ in on CFR 60-4.3 (a), at'-- 'ts efforts to :rleet
the goals established for the geographical area ....he. t.'1e conuact
resulting from this solicitation is to be performed. The hoc=s of minority
and fe~le employment and training must be substantially ~~iform throughout
the length of the contract, and in each uade, and the contractor shall
!:lake a good faiL~ effort to employ minorities and ....omen evenly on each of
its projects. The transfer of minori t:y or female employees or trainees
from Contractor to Contractor or from project to project for t.~e sole
purpose 0f meeting the Contractor's goals shall be a violation of the
contract, the Executive Order and the regulations in 41 CFR Part 60-4.
Compliance ....ith L~e goals ....ill be measured against the total ~ork hours
performed.
3. The Contractor sha.ll provide \.-ri tten notification to the Director 0: the
Office of Federal Contract Compliance programs ....ithin 10 ....orking days of
award of any constrUction subcontract in excesS of $10,000 at any tier
for constrUction work under the contract resulting from u)is solicitation.
The notification shall list t.'1e name, address and telephone number of the
subcontractor; employer identification number; estiu~ted dollar amount of
the subcontract; estimated starting and completion cates of the subcontractl
and the geographical area in ....hich the contract is to be perfo~ed.
4. 1'.5 used in this Notice, and in the contract resulting from this solici ta tion,.
the "covered area" is pinellas County, Florida.
60-4.3 (a)
EQUAL OPPORTm~ITY CLAUSE
During the performance of this contract, the contractor agrees as follo....s:
1. Tne contractor will not discriminate against any employee or applicant
for emplo~ent because of race, color, religion, sex, or national origin.
Tne contractor will U0~e affirmat~ve a~tion to ensure that applicants are
employed, and that employees are treated during employment ....iL'out regard
to their race, color, religion, sex, or national origin. Such action shall
include, ~ut not be limited to the following: Employment, upgrading,
demotion, or transfer; recruitment or recruitroent advertising; layoff or
terminatipn, rates of payor other fo~s of comper.sation; and selection
for training, including apprenticeship. The contractor agrees to post
in conspicuous places, available to employees anc applicantS for employ-
ment, notices to be provided setting forth the provisions of this non-
discrimination clause.
2. The contractoF will, in all solicitatio~.5 or advertiseDents for employees
placed by or on behalf of the contractor, state L,at all oualified
- ..
applicants will receive consideration for eID?loyment ~ithout regard to .
race, color, religion, sex, or national origin.
3. The contractor will send to each labor union or representative of workers
with which he has a collective bargainir.g agreement or other con~act or
~derstanding, a notice to be provided advising the said labor union or
workers' representatives of the.contractor's co~tments under this
section, and shall post copies of L~e notice in conspicuous places avail-
able to employees and applicants for employment.
F-2
c
\
The cont.=act.or \o,'ill .I....~~?ly ....i.t..'1 all provisions of Exel. _ive Orcer 11246
of Septe.mber 24, 196 , and of the rules , regulations ;andrelevan t orders
of t:..'1e Secretary of Labor.
"
5. The contractor ~i11 furnish all information and reports reqcired by
Executi ve Order 11246 of Septerrber 2.4, 1965, and by rules, regulations,
and orders of the Secretary of Labor, or pursuant L"lereto, and ~i11 permi t
access to his books, records, and accounts by the a~~nistering agency
and the Secretary of Labor for purposes of investi9ation to ascertain
compliance ~i th such rules, regula tions, and orders.
6. In the event of the con tractor I s non-compliance ~i 1:h the nondiscrimination
clauses of this contract or ~itb any of the said rules, regulations, or
orders, this contract may be canceled, terminated, or suspended in ~hole
or in part and the contractor may be declared ineligible for further
GovermDent contracts or federally assisted constrUction contracts in
accordance ~ith 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 la~.
7. l"'le contractor ~ill include the portion of the sen1:ence iI=nedia tely
preceding paragraph (1) and the provis ions of paraqrapr-.s (1) t:..l-:.rough (7)
in every subcontract or purchase order unless exempted by rules, regula-
tions, or orders of the Secretary .of Labor issued pursuant to section
204 of E,xecutive Order 11246 of September 24, 1965, so that such p:::ovisions
~ill be bineing upon each subcontractor or vendor. The contractor ~ill
take such action ~ith respect to any subcontract or purchase order as
t.'1e ?-dministering agency may direct as a means of enforcing such provisions,
including sanctions for non-compliance: Provided, however, That in t~)e
even~ a contractor :becomes involved in, or is threatened ~ith, litigation
~ith a ~ubcont.ractor or veneor as a result of such direction by the
administering agency, the contractor may request ~)e United States to enter
into such litigation to protect the interests of ~)e United States.
ST.~ID;'..RD FEDERJl.L EQUAL EHPLOYM.....'l:"NT OPPORTUNITY CONSTRUCTION CONTRACT
SPECI.FI CATIONS (EXECUTIVE ORDER 11246)
1. As used in these specifications:
a. "Covered area n means the geographical area described in the solici ta.-
tion from which this contract resulted.
b. "Director" means Director, Office. of Federal Contract Compliahce
Progral!',s, Oni ted States Department of Labor, or any person to .....hom
the Director delegates authority.
c. "Er:.?loyer identifica tion nt:rr.ber" meaI'.s the Fecleral Social Security
nt.llI'ber used on t..l)e En:ployer' s Quarterly Federal Tax Re turn, O. S.
Treastl...ry Depar::ment Fo:::-m 941..
d. "l-'.i.nority" includes:
F-3
.... \
(1) Black (all plrsons having origins in any of ~~ Black
hfrican racial groups not of Hispanic originri
(2) Hispanic (all persons of Mexic~, Puerto JU.can, Cuban,
Central or South American or other Spanish Culture or
origin, regarcless of race) I
(3) Asian and Pacific Islander (ell persons having origins
in any of the original peoples of t.he fll.r l:ast, Southeast
Asia, the Indian Subcontinent, or the Pacific Islands) i and
(4) American Indian or Alaskan Native (all persons having
origins in any of the original peoples of Nortl1 America and
maintaining identifiable tribal affiliations through member-
ship and participation or communi t:y identi:Eica tion) .
2. Whenever the Contractor, or any Subcontractor at any tier, subcontracts
a portion of the .....ork involving any construction tr.~de, it shall
physically include in each subcontract in excess of $10,000 the .provi-
.5fons of .these specifications and the Notice ....hich contains the ?--p-
pllcable goals for minority and female participation and ....hich is set
forth in the solicitations from ....hich this contract resulted.
3. If the Contractor is participating (pursuant to 41 CFR 60-4.5) in a
Hometo~_Plan a~proved by L~e O. S. Department of Labor in the covered
area either individually or through an association, its affirmative action
obligations on all ....ork in the Plan area (including goals and timetables)
shall be in accordance ....ith that Plan for those trades ~hich have unions
participating in the Plan. Contractors must be able to demonstrate their
participation in and ccmpliance ....iL~ the provisions of any such Hometo~~
Plan. Each Contract.or or Subcont=actor participating in an approved Plan
is individually required to comply ....i th its obligations under .the EEO
clause, and to make a good fait.~ e'ffort to achieve each goal under the
Plan in each trade in ....hich it has employees. ~ne overall good faith
perfo~nce by o~~er Contractors or Subcontractors toward a goal in an
approved Plan does not excuse any covered Contractor's or Subcontractor's
failure to take good faith efforts to achieve the Plan goals and time-
table.
4. The Contractor shall implement the specific affirmative action standards
provided in paragraphs ?a through p of these specifications. The goals
set forth in the solicitation from ....hich this cont=act resulted are
expressed as percentages of the total hours of employment and training
of minority and female utilization the Con~actor should reasonabiy be
able to achieve in each const--uction trade in'~ich 'it has employees in
the covered area. The Contractor is expected to make substantially
unifo~ progress toward its goals in each craft during the period
specified.
5. Neither the provisions of any collective bargaining agreement, nor tbe
failure by a Q~ion with whom G~e Contractor has a collective bar~aining
agreement, to refer either minorities or ....omE..l1 shall excuse tl1e Contrac-
tor I s obliga tioI'.s under these specifica tiorls , Executive Order 11246, or
the re~~lations promulgated pursuant thereto.
F-4
.6.. 01... orde~ ':'2:: ~-Je :;C;i'",'C=/',.~;-:r; ~:d':":~':'r'9 .~~"~S C~ clrr;""~;"_"":""~:::'> c...;....;. __<.~_..'''':'-':J
to be counted in meeti". t..'1e goals, such apprentices ~nd t..::ainees must.
be employed by the C~~ ~ctor during the training pe~iol and the
Contracto.::- must have Jade a commit.lnent to employ the apt,rent.ices and
trainees at the completion of their training, subject to the avail~il-
ity of employment opportunities. - Trainees must be trained pursuant to
training programs Approved by the U. S. Department of Labor.
7. The Con tractor shall take specific affinnati ve actions to ensure equal
employment opportunity. Th.e evaluation of the Contractor's compliance
.....ith these si..ecifications. shall be based upon its effort to achieve
maximum resul ts from its actions. TIle Contractor shall documen t thes e
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
Contractor, .....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 opportunities 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 recrui~ent source or
community 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 was not referred back to t..~e Contractor
by t..~e union or, if referred, not employed by the Contractor, this
shall be documented in the file .....ith the reason therefor, along .....ith
whatever additional actions the Contractor may have taken.
"I
d. Provide immediate .....ritten notification to the Director when the
union or unions .....ith .....hich the Cont.:'actor has a collective
bargaining ag~eement has not referred to the Contractor a minority
person or .....oman sent by the Contractor, or when the Contractor has
other infonna tion tha t the t:..'1ion referral process has impeded ..the
Con~actor's efforts to meet its obligations.
e. Develop on-the-job training opportu..'1ities and/or participate in
training programs for the area ":'hich expressly include minorities
and .....omen, including upgrading programs and appre:nticeship and
trainee programs relevant to the Contractor's employment needs,
especially those programs funded or approved by the Depa=tment of
Labor. The Contractor shall provide notice of t.hese programs to
the sources compiled under 7b above.
f. Disseminate the Contractor's EEO policy by provic,ing notice of the
policy to unions and training programs and requesting ~~eir coopera-
tion in assisting the Contractor in I;leeting i t..s EEO obligations; by
including it in any policy ~~nual and collective bargaining agreement; by
F-5
I
,
\
.I
publicizing it in the company newspaper, annual report, etc.; by
specific review of the policy with all management personnel and
with all minority and female employees at least once a year; and
by pas dng ilie company EEO policy on bulle tin boards access ible
to all employees at each location where consu~ction work is
performed.
g. Review, at least annually, the company's EEO l~licy and affirmative
action obligations under these specifications with all employees
having any responsibility for hiring, assignment, layoff, termina-
tion or other employment decisions including specific review of
these items wid. onsite supervisory personnel such as Superintendents,
General Foremen, e tc., prior' to the ini tia tion ot cons truction work
at any job site. A written record shall be m.a.de and maintained
iden titying the time and place of these mee tings, persons attending,
subject n.atter discussed, and disposition of .the subject matter.
h. Disseminate the Contractor's EEO paliC)' exten~ally by including
it in any -:dvertising in the news media, specifically including
minority and female news media, and providing written notification
to and dis.:ussingthe Contractor I s EEO policy .....i th oilier Contrac-
tqrs and Subcontractors with .....hom 't..'1e Contractor does or antici-
pates doing business.
i. Direct its recrui bDent efforts, both oral and wri tten, to minority,
female and community organizations, to schools with minority and
female students and to minority and temale recruitoent and training
organizations serving the Contractor's rec=uitment area and employ-
ment needs~ Not later than one month prior to the date for the
ac=eptance of applications for apprenticeship or other training
by any rec=uitment source, the Contractor shall send written
notification to organizations such as the above describing t..~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 women and, where reasonable, provide after
school, summer and vacation employment to minority and female youth
both on the site"and in other areas of a Contractor's workforce.
J'"'
k. validate all tests and other selection requirements where L~ere
is an obligation to do so ~~der.41 CFR Part 60-3.
1. Conduct, at least annually, an inventory and evaluation at least of
of all minority and female personnel for prorr~tional opportunities
and encourage these employees to seek or to p:::-epare for, t.hrough
ap?ropriate training, et=., such o?portu.:~ities
m. E:nsure that seniori ty practices, job classifications, work assign-
ments and other personnel practices, do not tiave a discriJ:ci.:1a tory
effect by continually =ni toring all personne,l a:1d employment
related activities to ensure iliat the E:::O p:Jlicy and the Contrac-cor's
F-6
obligations unde) these specifications are being ,t .cied out.
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.
o. Document and maintain a record of all solicitations of offers
for subcontracts from minority and female constr~ction
contractors and suppliers, including circulation of solici ta tions
to minority and female contractor associations ~~d other business
associa tions .
p. Conduct a revie...., at least annually, of all supE~rvisors' adherence
to and performance under the Contractor's EEO policies and
affirmative action obligations.
8. Contractors are encouraged to participate in voluntary associations
....hich assist in fulfilling one or wore of their aff:~rmative action
obligations (7a through p). The efforts of a contr;actor association,
'joint contractor-union, contractor-community, or other similar group
of ....hich the contractor is a member and participant, may be asserted
as fulfilling anyone or more of its obligations under 7a through P
of these Specifications provided that the contractor actively partic-
ipates jn w~e group, makes every effort to assure that the group has
a positive impact on the employment of minorities and ....owen in the
indust-']', ensures that the concrete benefi ts of the program are
reflected in the Contractor's minority and female ....orkforce partic-
ipation, makes a good faith effort to meet its individual goals and
timetables, and can provide accesS to documentation ....hich demonstrates
the effective~ess of actions taken on behalf of the Contractor. Tne
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 minorities and a separate single goal for ....omen have
been established. The Contractor, ho....ever, is re~lired to provide
equal elIlp2..oyment opportunity and to take a::firm? ti 'Ie ac::.ion for all
minority gToups, both male and fer.3.le, and all ....omen, both minority
and non-minority. Consequently, t.'<1e Contractor may be in violation
of the EY.ecutive Order if a particular group is employed in a substan-
tially disparate manner (for example, even though the Contractor has
achieved its goals for. ....omen generally, the Contractor Ir.ay be in
violation of the Executive Order if a specific minority group 0;' ....omen
is underutilized).
10_ The 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 Contractor shall not enter into any Subcontract ....ib~ any person
or fir:n debar:::ed from Government contracts pursu.ar..t to Executive
Ord~.:l;" 11246.
F-7
" 12. The Conaactor ShJl.L carry out such sanctions and JI ",1 ties for
violation of these specifications and of the Equal~pportunity Clause,
-including suspension, termination and ~ancellation of existing sub-
contrac~ as may be imposed or ordered pursuant to Executive Order
11246, a6 amended, and its implementing regulations, by the Office
of Federal Contract Compliance Programs. Any Conaactor who fails
to carry out such sanctions and penal ties shall be in violation of
these spec i fica tions and Executi ve Order 11246, ~.s amended.
13. The Contractor, in fulfilling i t:3 obligations under these specifica tions,
shall implement specific affirmative action steps, at least as exten-
sive as those standards prescribed in paragraph "] of these specifica-
tions, so as to achieve maximum results from i.~ efforts to ensure
equal employment opportuni ty. If the Contractor fails to comply wi th
the requirements of the Executive Order, the implementing regulations,
or these specifications, the Director shall proceed in accordance wiL~
41 crR 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 the 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, constrUction trade, uni'on affiliation if any, employee
identification number when assigned, social sec~Iity number, race,
sex, s-r:a tllS (e. g., mechanic, apprentice, trainee., helper, or laborer),
dates of changes in status, hours worked per wee~ in the indicated
trade, rate 0 f pey, and locations at which the work .;as performed.
Records shall be -maintained in an easily understandable and retrievable
form; however, to the degree that existing records satisfy this
requirement, contractors shall not be required to rr,ain-r:ain separate
records.
15. Nothing herein provided shall be const::-ued as a limitation upon the
application of other laws which establish di=fe:rent standards of
. compliance or upon the application of requirements for t..~e hiring of
local or other area resicients (e.g., those uncier t..'1e Public \-Iorks
Employment Act of 1977 anci'the Comro~~ity Development Block Grant
program) .
.
F-8
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I
APPENDIX G
OMB
Circular A-110
.I
..
I
.1
Office of Management and Budget Circular A-110 (7/30/76)
A-110:1
OFFICE OF MANAGEMENT AND
BUDGET
IClrcular No. A-IIO]
GRANTS AND AGREEMENTS WITH INSTI-
TUTIONS OF HIGHER EDUCATION,
HOSPITALS, AND OTHER NONPROFIT
ORGANIZATIONS
Uniform Administrative Requirements
JULY 1, 1976.
To the heads of executive departments
and establishments.
Subject: Untform administrative re-
Quirements for gTants and other agree-
ments with Institutions of hizher edu-
cation, hospitals. and other nonprofl t
organtzatlons
1. Purposc.-This Circular' promul-
gates standards for obtaining consisten-
cy and uniformity among Federal agen-
cies in the administration of grants to,
and other agreements with. public and
private Institutions of higher education,
pUblic and private hospitals, and other
Quasi-public and private nonprofit or-
ganizations. This Circull1.r docs 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, EOective date.-The standards in
the attachments to this Circular v,'ill be
applied as soon as practicable but not
later than January 1. 1977.
3. Supersession.-This Circular res-
clnds and replaces parts III and IV of
the Appendix to Federal Management
Circular 73-7, Admlnlstration of college
and university research grants.
4. Policy intent.-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 b~' Fed-
eral agencies as conditions of grants and
other ag~eements with recipients.
5, Applicability and. scopc.-Except as
provided belo'w. the standsrds promul-
gated by this Circular are applicable to
all Federal agencies. If any statue ex-
pressly prescribes policies b~ specific re-
Quirements tha.t dilIer from the stand-
ards provided herein, the provisions of
the statute shAlJ govern.
The provisions of the attachments of
this Circwar shall be applied to subre-
clpients performing substantive work
under gTants that are passed through or
av.'arded by the primary recipient if such
subreciplents are organizations de-
scribed In paragraph 1.
6. Definitions.
a. The term "grant" means monev 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 stimulation 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 (a) technical a.ssistance
~;~:r_a_~.s. which provide services instead
general revenue sharing, loans, 10U1
gUl1.rantees, or insurance. and (cl direct
pa)'ll1ents of any kind to individuals.
b. The term "recipient" includes the
following types of nonprofi I, or~aniza-
lions that are receiving Federal funds
from a Federal B~ency or through B
State or local government:
Public and private institutions of high-
er education: public and pri\'atc hos-
pitals; and other Quasi-public and pri.
vate nonprofit or~ani7,ations such as (but
not limited to) community ;l.ction agen-
cies. research Institutes. educational as-
sociations, and health ccntcrs.
The term does not Include foreign or
interna tional organizations (such as
agencies of the United Nations) and
Govcrnment-owned contractor operated
facilities or research centers providing
continued support for mission-oriented,
large scale programs that are Govern-
mcnt-owned or controlled. or are dee,
signed as federally-funded research and
development centers.
7. Requests for cxccptions.-Thc Office
of Management and Budget may grant.
exceptions from the requirements of this
Circular when exceptions are not pro-
hibited under existing Jaws.
However, In the Interest of maximum
uniformity, exceptions from the re-
Quirements of the Circular V!ill be per-
mitted onlv In unusual cases. Agencies
may apply "more restrictive requirements
to a class of recipients 'll:hen approved by
the Office of Management and Budget.
8. Att~hments.-The standards pro-
mulgated by this Circular are set forth
in the Attachments, which are:
Attachment A Cash "depositories.
Attachment B Bonding and Insurance.
Attachment C Retention I\nd custodial re-
quirements tor records.
Attachmen.t. D Pr~ram Income.
Attachment E Cost shlU'lng and ml\t<:blng.
Attl\Chment F Standards tor financial man-
agement systems.
Attachment G Flnancll\l reporting require-
ments.
Attachment H Monitoring and reportlng
program pertormlLJlce.
Att.n.chment I Payment requirements.
Attachment J Revision ot finnnclal plans.
Atta.chmen.t. K Closeout procedures.
Attl\chment L S.uspenslon and termination
procedures.
Attachment M Standard torm lor applying
tor tederal assistance.
Att:<chment 1'1 Property manBgement stand-
ards.
Attachment 0 Procurement standards.
9. Exception.s far certain recipicn.is.-
Notwithst.a.ndlng the provisions of para-
graph 7 if an applicant/recipient has a
history of poor performance. is not fi-
nancially stable, or tts management sys-
tem does not meet the standards pre-
scribed in the Circular, Federal agencies
may impose additional requirements as
needed provided that such applicant/
recipient is notified 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 the same time the reclpient
:_ _ _l;r. ~~~
10. Rcsponsibilitics.-Agencies respon-
sible for administering programs Ulat in-
volve grants and other agreements with
redplents shall issue the appropriate
regulallons necessary to implement the
provisions of this Circular. All portions
of such regulations that involve record-
keeping and/or reporting requirements
subject to the provisions of the Federal
Reports Act and OMB Circular A-40
must be submitted to OMD for clearance
before being introduced into use. Upon
. request all regulations and instructiom
implementing this Circular shall be
furnished to tIle Office of Management
and Budget. Agencies shall also desig-
nate an official to serve as the agency
represen ta tive on ma tters rela ting to the
!mplementalion of this Circular. TIle
name and lltle of such representative
shall be furnL~hed to the Office of Man-
:J.gcmcnt and Budget not later than Au-
gust 30, 1976.
11. lnquiries.-Purther information
concerning this Circular may be obtained
by contracting the Financial Manage-
ment Branch, Budget Review Division,
Office of Management and Budget,
Washington, D.C. 20503. telephune 395-
3993.
JAMES T. LYNN,
Director.
A-rrACHMENT A.-CIRCULAn No. A-IIO
CASH DE'r'OSITORtE&
1. This attachment sets 10l'th stl\ndards
governing the use 01 banks and other In-
stitutions "-S c1eposltorles 01 lunds "cjvanced
u~,der grants and other agreements.
2. Except 10r sltul\tlons described In parll-
graphs 3, 4. and 5, no Federa' sponsoring
agency shall:
... Require physical segreglltlon o( cnsh de-
positories lor lunds ",'hlch are provided to a
re,:lpleIlJt.
b. Establish nny eligibility requlr.ements
lor cash deposltorle.s lor tunds ....hlch are pro-
vided to a reCipient. '.
3. f. separal.e ol\nk a"count shall be require
",'hen applicable let.ter-ol-credl t agree men ts
provIde that drawdowns ""111 be mr.de ....hen
the recIpient's checks are presented 10 the
b,.nk lor pl\yment.
4. Any moneys advnnced to n recipient
v.'hlch are subject. to th~ contrt-l... or regula-
'.Ion 01 the Untted States or I\ny 01 Its olYtcers.
q:ents or employees' (publiC moneys is de-
fined In Treasury Circular No. 1.76, es
amended) must be deposlt.P.d In a banI: with
Federal Deposit Insurance Corporatlon
(FDIC) Insurance coverage o.nd the hll\ance
e>:ceedlng the FDIC coverage must be col-
la.terally secured.
5. Consistent v.'lth the national 1'01\1 01
el<pandlng the opportunities lor minority
business enterprises. recipients Ilnd sub-
r<:clplents shall be encouraged ,to use minor-
Itl' banks (a bank v.'hlch Is owned at least 50
p,crcent by mInority group members).
A-rrACHMI:NT B.-CIRCOLAR No. A-II 0
BONDING AND INSURANCE:
:. ThIs at.tachment sets lorth bond Ing nnd
Insurance requirements lor grl\nt.s and other
llgT..,ments ,",1th reCipients. No other bond-
\n& and insurance requirements shall be Im-
posed other thaD those normally required by
the recipient.
2. Except as otherwise required by 10.,",'. a
grant or other agreement that requires the
contrnctlng (or subcontrl\cUn~) tor con.
struc-tlon or lo.clllt)' Improvements shnll pro.
,_._. '~n _~~,_,_._. 'F ',' "n..' ~;,.
I
Office of Management and Budget Circular A-110 (7/30/76)
qulrement..& relating to bid guaran~"". per-
formance bonds. ..nd payment bonds unle68
tbe construCtion contr&Ct or subConuact H-
ceedB fI 00 ,000. ror those ooIlltract..& or sub-
contl'1loCts exceeding 1100.000. the rederal
agency znay accept tho bonding policy and
requirements of the grantee provided the
Federal agency h.... made' a determination
tbat the Government'. In~rest lB adequataly
protected. It auch a detarmlnatlon has not
been made. the minimum requlrement..& .hall
be as follows:
a. A. but vuarantee Irom elUh b~r equiv-
alent to JIve percent 01 the bUi prlce.-
The "bid gu"ra~tet!" shall consist 01 a firm
commItment such I\S " bid bond, certUled
cbeck. or other negotiable Instrument ac-
companying a bid lUl MSurance that the bid-
der will. upon acceptance ot his bid. executa
such contr&ctual document..& .... may be re-
quired within the time specUled.
b. A perlOf"mance bond on the part 01 the
contrlUtOf" lor 100 percent 01 the contrlUt
-prlce.-A "perfonn..nco bond" I. onc executed
In connection with a contrnct to secure ful-
fillment ot all the contractor's obllgatlons
under such contract.
c. A pllyment bond on the part 01 the con-
trlUtor lor 100 percent 01 the contrlUt
prlce.-A "payment bond" I. on. executed In
connectlon with a contract to Msure pay-
ment B.B required by law of all pel"llOns sup-
plying labor and mat..erlalln tbe execution of
tbe work provided for In the contract.
3. Where the Pederal Government guaran-
taes or Insu~ tn~ repayment 01 money
borrowed by the recipient. the I"ederal
agency. at Its discretion. may require ade-
quata bonding &.Dd 1nsuranoe H the bondlnl)
snd lnaurance requirements of the recipient
are not deemed adequa ta to protect the In-
tarest ot tbe Federal Government.
~. The P'ed.eral spoDBOrlnl) &gency may re-
quire adequa~ t\.dellty bond cover&ge ,,'bere
the recipient b.... no coverage and tbe bond lB
needed ItO protect tbe Government's Intarest.
l>. Where bonds are required In the 8ltua-
tlons described s.bove. tbe bonds shall be ob-
tAined trom compe..nles boldlng certHIC&~ ot
authority a.& a.cceptable sureties (31 CPR
2:n) .
An....CRldXt..,.C.-<:ncuIJJt No. A-110
I.rn:NTION ANt> CUSTODIAL 1t-"Q=/oaNTB roa
a !:CORDS
1. Thla s.ttacbment 8e1.8 fortb record retan-
tlon requlrements. for grlUlts and other &gTee-
men!.6 with recipients. Fe<!e",1 8poDBOrlnl)
s.gen.cles sball not Impose any record reten-
lJon requirement!! upon rec1plent..& other than
tbO&e described below.
2. ExceJU for paragraph 1. this att.acbment
also r.pplles to subreclplent.s I!.S relerred to
In paragra.ph II of tbe basic circular.
3. l"lnlUlcla1 records, 8upportlng documents
stAtistical records. a.nd all otber records pertl~
nent to an ......ement &bal] be retained for a
periOd or three year'B. with the follo"1Il6
qua.ll:lcatlon.e :
L II &DY litigation. cla1m or audit Is starte<!
bet ore the expiration or the 3-year periOd the
.-..cords shall be retained untll all Iltlgations
clalmJ;. or audit find1ngs involving tbe reeor~
b&ve been resolved.
b. ~rd8 .Ior nonexpendable property &C-
qulre<1 ....Ith 1"eoderll.l runds &hall be retained
lor 3 years e..!ter I t.s final d\.oposltlon.
c. When rN'.ords are tranBlerred to or malo
:alned by tbe Federal ~oDBOrlng agency th~
~b-lyear retantlon requirement Is not app'IICs-
e to tbe re-::lplent.
~. The retantlon periOd SlA.'"te from the
dAte or tbe subnu.a..lon or tbe t\.nal expend1-
ture report or. for gn.nts and other &pee.
:enl.8 tbat are ",newed annually, trom the
fia.t.e ot the 8ubml.s8lon or the &.Dnua.l
Dele!al .tAtUl\ rep-ort.
5. Recipient organizations should be au-
thorized by the Ye<!eral sponsoring &gene}'.
If they so desire. to substitute mJcronlm
ooples In lieu ot onrlnAl records.
6. The I"ederal sponsoring &gency &llall re-
quest transfer 0/ certain records to Its cw-
to<l}' from recipient org..nl....tlons ,,'ben It
determJnes that the reoords posses.. long-
term retantlon value. However, In order to
avoid dupllcate record-keeping. a Federal
spOl\6Oring &gency may make arrangement..&
with recelplent organ1z.atlons to retain any
records that are continuously needed for
Joint use.
7. The head ot the Federal 8ponsorlng l<gen-
cy and the Comptroller Oeneral ot lhe United
States. or an}' ot their duly authorized repre-
8entAtlves. shall have &Ccea.s to ll1lY pertinent
books. documen\.... papers. IUld records ot the
recipient organlz.&t1on s.nd their subre-
clplents to make audlt..&. examlnatlons. ex-
cerp ts ..nd transcrl l' t..&.
8. Unle.!lB otherwise required by la,,'. no
Federal sponsorlnl) agency 1'.'1 al I plnee re-
strictions on recipient orga.n1Z8t10na that wlll
limit public o.ecesa to the re<x:>ro.& 01 recipient
organizations that are pertlnent to a grant
or agreement excep't when tbe agency can
demonstrate that such re-::ords must bc kept
confidentlal and would have been excepted
lrom disclosure pursuant to the Freedom ot
Intormatlon Act (6 U .S.C, 662) \1 the recordB
had belonged to tbe Federal sponsoring
&gency.
A=ACHr.a:NT D.-cIllCU1.AJl No. A-110
P1lOGR....W INCOJoU
1. l"ederal spoDBOrlng &g'Cncle8 ahall r.pply
the 8tandardB set torth In thl6 ..ttaobment In
requiring recipient organizations to &CCount
for progrlLID Inoome related to proJect..&
t\.D&Dced In ",bole or In part With Fe<!eral
funde. Progn.m Income repreeent..& gl"08B In-
come earned by tbe recipient lrom tbe fed-
erally 8upported &Ctlvltles. Such ee.rnlngs ex-
clude Interest earned on advances &.Dd may
Include. but wUl not be 11mJted to. Income
from service tees, sale ot commod1tl.... UB&ge
or rental fees. a.nd royalties on patant!! and
coprlgbta.
2. Interest earned on advlUlees ot Federal
funds allall be remitted to the Federal &gency
ercept for Int..erest earned on ad'l'&1lOCll to
StAtes or Instrum.entaJltI"" of ... Stata as pro-
vlde<1 by the In t<:rgovernment.o.I Coopen..tl.on
Act ot 1968 (Publlc LAw ~TI).
3. Pr-oce<>d8 from tbe aaJe or ~ a.nd per-
sonal property eltber provide<! by .the Fed-
era.l Government or purcbsaed In wbole or In
part With Federal fund.s. sball be bandied In
&ccordanee With AttAchment N to tbla clr-
cule.r pertaJnlng to property m..a.na.gement
... Unless the agreement prOVides other-
wise. reclplenu lIball b..ve no obligation to
the 1'ederal Government Wltb respect t.o
royaltles received .... a result 01 c:opyrlgbu or
pat..enu pro<luced under the grant or other
&greement (see pa.ragraph 8. Att&chment N).
ll, All other program Inoome earne<! dur1ng
the proJect perlo<! ahall be reta.\ned by the
recipient "ncl, In accord.......ce with tbe gr-ant
or other agreement. shall be:
.... Added to runds COmInJtt..ed to the proJ-
ect by tbe 1"eoderal sponsoring &gency &.Dd
recipient organization and be Wled to rurtber
eligible prop-am ObJectiVes;
b. Used to tlnanee tbe non-Federal &bare
or lbe project wben approved by the Federal
1l'po~r1Il6 agency: or
c. Deducted from the total project C-06t..&
In detarmlnlng the net coste on which the
l''Cde",1 &hlt.re or coet.s ,,'Ul be base<!.
AnAcHJo<rNT E.-cDlCUl.AJt No. A-I10
COBT 8 H...A..LDrC A:ND ).I A. TCH IN 0
1. ThUl att.a.chment &eU forth crll.crla and
pTOC<>dur... to'!' the allO'l<"&bUltT o! rJU'.h ":1<1
.1
A-110:2
In-kind contributions made by reclplent..& or
subreclplents (I\S relerred to In ps..ragraph 5
01 the b....lc circular). or tblrd parties In 8at-
Istylng coat sharLng IUld znatcblng requlre-
meet..& or Federal .ponsorlng agencies. This
attAchment also estAbllahes crlt.erla lor the
evaluation ot In-kind contrlbutloIl1l made by
third partlu, and supplemenu tbe guidance
set torth In Fede",l MAnagement Circular
73-3 9,'ltlh respect to cost .barlnl) on reder-
ally-sponsored research.
2. The 101l0",lng det\.nltlon8 apply tor the
purpose ot this attachment:
a. Project C03ts,-ProJect oost..& are all a]-
10"'1\ble COBt..& (I\S set lorth In the appllcable
Feder..l coot principles) Incurred bj' a reclpl.
ent and tbe value or the In-kind contrlbu-
tlons made by the reclp len t or third plU'tles
In accompllshing the obJectlves ot tbe grant
or other agreement during the projector pro-
gram perlo<!.
b. C03t .h.adng an<i tn4tchtng.-In general.
cost "baring and matching represent that
portion 01 project or prog",ID cosu not borne
by th" Fedeml Govemment.
c. C,,-,h contributlon.'l.-<:lUih contrlbutlona
tepre.",nt the reclplent'a caab outlAy. includ-
Ing the outlay ot money contributed to the
reclpl'ent by non-Pederal third ps..rtles.
d. In-kind contrlbutw.....-ln-klnd contrl-
butlon~ represent the value ot nonea.sb oe)D-
trlbut.lono provided by the recipient a.nd
non-I"edemlthlrd parties. Only ....hen au-
llborl2;ed by Foderal leglalatlon, m.ay property
purcb....e<1 with rederal funds be conslcl.ered
B.B the reclplent'8 In-k1nd contributions, In-
kind contributIOns may be in the form or
charg~ for real property and non-expllnd-
able personal property. s.nd tbe vliJue of
I)oods and aervlees directly benelltlng "nd
8pecUically Identl1l.able to the project or
program.
3. General guidelines for computing coat
ahs..rU1g or m.atcblng are as fOUOW1l:
a. Coat &he.rlng or matching IDAY consist
ot:
(1) Cba~es Incurred by the recipient 8.Il
project cost8. (Not ,,11 ebarges require cash
out\.aya by tbe recipient during 1lbe project
perlo<:l: eXAIDples a.re depre-::laUon and use
cbarges for buUd1n.p &.DO equlpment.)
(2) ProJect coe ts tina.n ce<1 'Wi th ca.sb co n -
trlbuted or donated to the recipient by other
non-J!>edera.l pubUc &g'Cncle& Uld 1nstltutlons.
and prlvs.te org1lon\z8.tlona and Indlvldua..lB,
and
(3) ProJe-::t coeu represented by ""rvleee
and real s.nd person..1 property, or u.... there-
01. ~lonated by otber non-I"ederal public
&gen<:lea and lnatltutlona. -.nd pr\.vate orga-
nlzatlono a.nd Ind1rtdua..lB. "I
b. All contributions. both ea.sb &.Dd 1n-
kine.. llbllll be a.ccepted all part of tbe recipi-
ent., cost sbartng ..nd matching wben ilUch
contrIbutions meet ..1\ 01 the tollowtng
crlt<:I'lB :
(1) Me verUtable from tbe reclplen t.,
record.:s;
(2) A'" not Included as contributions for
"ny otber le<1erally-.......lBted progr-am:
(3) Are neceBa8.ry and rea.oonable tor prop-
er .."d etliclent &COOmpUahment ot project
obJee:tlves:
(4) Are types ot cbe.rg-es that would be al-
)o.....ble under tbe appllC8.ble ooet prlnClplea:
(ll) Are not pllld by the l"'edeul GoVUD-
men': under another aaallftance agreement
(unl'"", tbe &.gTeement lB ..utborlu:<1 by Fed-
eral law to be uud lor C-OGt slu.rlng or match-
Inl)) ,
(61 Are pro'Vlded tor In the ..pproved bud!;-
et winen required by the 1"eodero.I agency: and
(7) ConJorm to other provlslona ot thlB
a ttM:bment.
4.. V..lUC5 for recipient in-kind oontrlbu-
tlo"" ....Ul be eatabll'l.bed In accorda.noe with
the "ppllczble C08t principles.
6. S!,<,clrlc proc<>du..- tor the reclpl..nl.8 In
""",t.I\hlt...h1nt" th.- l'rJuf'" nf In-rlnd ("'('l:Jt:-1hu-
I
Office of Management and Budget Circular A-110 (7/30/76)
tlons from non -Federal third partles arc set
forth below:
a. Vall/ation 01 .!oll/nfccr .<crl'iccs.-Volun-
teer services may be furnl'hed by professional
and technical personnel, consultants, and
oth('r skilled and unskilled labor. Volllntcer
sen'lces may be coullted as co,t sharlllg or
matching l! the service I, an Integral and
necessary part of nn appro"ed prohram.
(I) Ratc" lor vO/llllteer servicc.,.-Rates for
volunteer, shollld be conslslent with those
paid for similar work In the recipient's
organI7.atlon. In tho,e Installces In which the
requlrcd skills arc not lound In Ihe recipienl
organI7.atlon, rates should be cOllslstcnt with
those paid for similar work In the lallaI' mar-
ket In whIch thc rcclplcnt compctcs for thc
kind of servlccs In,'olved.
(2) Voll/lItccrs ':)1np/oycd by olher organi-
zntio7ts.-Whcn nn crnploycr other than the
reclplcnt furnlshcs the servlccs of an em.
ployee, these services shall 'pc valued at the
employee's regular rate of pay Cexclusl"e of
fringe benefits "nd overhead costs) provided
these services arc In the same sklJl for which
the employee Is normally paId.
b. Valuation 01 donated, ezpendable pcr-
sonal property.-Donated, expendable per-
sonal property Incltldes such Items as ex-
pendable equIpment, office supplies, labora-
tory. supplles or workshop and classroom
supplies. Value assessed to expendable per-
sonal property Included In the cost or match-
Ing' share should be reasonable nnd should
not exceed the market value of the property
at the time of the donation.
c. Valuation 01 donated. noncxpcndable
personal property, buildings. and land or
we thereo/.
(1) The method used for charging cost
sharIng or mntchlng for donated nonex-
pend able personal property, buildings nnd
land may dltrer accordIng to the purpose of
the grnnt or other agreement a.s tollows:
(a) It the purpose of the grant or other
agreement Is to assist the recipient In the
Il-cqulsltlon of equipment, buildings or land,
the totll-I value 01 the donated property mRY
be claimed as cost sharing or matchIng.
(b) It the purpose of the agreement Is to
support act!\'ltles that requIre the use 01
equipment, buildings or land. depreciation
or use charges for equipment nnd buildings
may be mnde. The full value of equloment or
other capltll-l assets "nd fall' rent~1 cha.r~es
for land mny be nIl owed provided that the
Federal agency has npproved the charges.
(2) The vnlue of donnted property wlll be
determIned In accordance \Io'lth the usual
IIccountlng pollcles of the recipIent wIth the
following qualifications:
(a) Land and bllildinps.-The vnJue of
donated IIInd and bUildings m:\\' not .exceed
Its fall' mp.rket vll-Iue, at the tlmi of donation
to the recipient as estRbllshed by IIn Inde-
pendent npprnlser (e.g.. certified real prop-
erty apprAiser or GSA repre~entatlves) Il-nd
certIfied by II responslllle officIal of the
recipient.
(b) Noncxpcnd.ablc pC1'son.a1 pro'perty.-
The vl<lue of donnted non expendable personal
propert)' shnll not exceed the fnlr market
value of equipment and propert)' of the same
age and condition nt the time 01 donation.
(c) Use 01 -'pace.-The value of donated
space shall not exceed the lair rentnl ,'al\:e
of COmpp.rable spnce as established by an
Independent appralsRI of companble ~pRce
and facilities In a prh'nlely-owned building
In the same locallt)':'
(d) Loancd cqllip1ncnt.-The vallle of
loaned equIpment shall not exceed Its fRlr
rental value.
6. The followIng rcqulrements pertnln to
the reclplent's supporting rccords for In-
kind contributions from non-Fcderal third
ra:-t.le.<;.
n. Vol\1ntf'cr 5prvlccs n1\Jst. b{' doc\lmcntC'ct
and. 10 the extent feasible. supported by the
same methods used by the recipient lor It.'
employees.
b. The ba~ls lor determinIng the vRluathHl
for personal services. malerlRl, equipment.
I)ulldlngs and land must be documented.
ATTACHMeNT F.-CIRcULAa No. A-lID
STANOARlIS FOR FINANCIAL MANAGE.MENT
SYSTEMS
1. 1111s nttachment prescribes standards for
financlnl management s)'stems 01 recipients.
Federal sponsoring agentles shall not Impose
additlonnl standarus on recipients unless spe.
clficnlly provIded for In the nppllcable sta-
tutes (e.g., the Joint Pundlng Slmpllficatlon
Act, P.L. 93-510) or other attachments to this
circular. However, Federnl sponsorIng ngen-
cles arc encouraged to mnke suggestions nnd
nsslst recipients In estbnllshlng or Improving
financlalmanfLgement systems when such IIS-
slstanct' Is needed or requested.
2, Recipients' financial mn.nagement sys.
terns shllll provide lor:
II. Accurate, current nnd complete dlstlo-
sure of the financial results of each federally
sponsored project or program In accorclanee
with the reporting requirements set forth In
Atl.'\chment G to this circular. \Vhen n Fed-
eral sponsoring ngency requires reporting on
an accrual basis, the recipient shnll not be
required to establish an accrual Rccountlng
system but shall develop such "ccrunl dntn
for Its reports on the basis of an annlysls of
the documentation on hand.
b. Records that Identify adequately the
source and IIppllclltlon 01 funds for federalll"
sponsored activities. These records shal1 con-
tain Infonnatlon pertaIning to Pederll-I
aWll-rds. authorlzntlon3, obligations. unobll-
gnted balances. assets, outlays, and Income.
c. Eflectlve control over and nccountablllty
for all funds, property and other &.Sselos. Re-
cipIents shall adequately safeg-uard all such'
assets and shnll assure that they are used
solely for authorized purposes.
d. Compllrlson of actual outlays with bud-
get amounts for ell-ch grant or other agree-
ment. Whenever appropriate or required by
the Pederal sponsorIng Il-gency,. finanCial In-
formation should b~ related to performance
and unIt cost data.
e. Procedures to mlnlml"e the tIme elnpslng
bel""een the trnnsfer of funds from the U.s.
Treasury and the dIsbursement by the recip-
Ient, whenever funds are advanced by the
Federal Government. When advances nre
made bl' a letter.of -credit method. the reclp'
lent shall make drawdowns as close as pos-
sible to the time of mil-king disbursements.
/. PTocedures for determInIng the renson.
ableness. allow"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. Exnmlnatlons In the form of audits or
Internal ll.\ldlts. Such audits shall be mnde
by quallfied Individuals who arc sumclently
Independent 01 those who auth<)rize the ex-
penditure of Federal funds. to produce un-
biased oplmons. conclusions or Judgments.
They shall mee~ the Independence crIteria
Rlong the llnes of Chn.pter 3, Pnrt 3 of the
U.S. General Accounting Office publlcatlon.
Standard~ for Audit of GovernmenUI Oq;nn-
17.ations. Programs. Actl"ltles and Functions.
TI1CS~ cxnnlinalionz nrc intended to a...c.;cer-
tnln the eflectiveness of the finRnclal mnn~
ngemcnt systems and Internnl proccdures'
thRt have been establlshed to meet the tcrms
and conditions of the agreemenl.'. It Is not
Intended t.hnt each ngreement a\\'arcled to the
rccl'p\cnt be examined. Genern]}y, cxnmlnn-
tton~ should be conducted c.n an orcnnt7A'.
tlnn-wlrlr- hn~!c.; -t.o lest tlH' fl-;r.:'\l Intl"r:;-It.\' of
.,
A-110:3
fl1H\lH"lnl t.rnnsA.ctloJl~. n.<\ well as compliance
with the terms nnd conditions or the Federal
grp.nts and other agreements. Sllch t(',ts
would Inclllde Rn aprHoprlR(.e sRmpllnJ; of
Pedcral Rrreements. ExnmlllRtlon, ",'111 be
conducted with reasonahle frequency, on a
continuing bllsls or nt schedulecl Intenals.
usually annually. but not less frequentlr thnn
C\'ery t",o yeRrs. The frequcncy of these ex-
aminations shall depend \1pon the nature,
517.0 IInd the complexity of the nct"llty. These
examInations do not relieve j"c-deral ngencles
or their nudlt responsibilities. b\1t mar atrect
the frequellcy and scope of such nudlts.
LA 51'slematlc method 10 IIssure tlmelv nlld
npprop~lale resolution of audit findings nnd
recommendations.
3. Prlmnr)' recipients shnll requIre subre-
clplents (IlS defincd In pl1rngrnph 5 of the
l>nslc circular) to adopt the stnndards In
parngraph 2, "bove except for the require-
ment In sullparllgraph 2e. regarding the use'
or the letter-or-credlt method nnd thnt pnrt
of .:>ubparngraph 2a, regnrdlng reporting
forms nnd frequencies prescribed In Attnch-
men', G to thls clreulnr.
ATTACHMENT G.-CmCULAR No. A-lID
FINANCIAL RITOn.TIN'C REQUIREMENTS
I. This attachment prescribes uniform re-
porting procedures for recipients to: sum.
marlze expenditures mnde Il-nd Federal funds
unexpended for each a","rd, report the status
of Federal cash IIdvnnced. request ad'"nnces
and reimbursement when the letter-of-credl~
method Is not used; and promulgates stand.
IIrti. forms Incident thereto.
2. The following definitions npply for pur-
poses or thls attachment:
a. Accrued ezpcnditures.-Accrued ex-
penditures are the charE:es Incurred by the
recipient during a gIven period requIring the
provision of funds for: (1) goods nnd other
tangible propert)' received; (2) servIces per-
formed by employees. contractors. subreclpl-
ents. and otber payees, and (3) other
amounts becoming owed under programs for
....hlch no current 6ervlces or performance 1S
required.
b. Accrucd incol71c,-Accrued Income Is the
sum of (I) earnings during a gl'l'en period
from (I) servlces.performed by the recipi-
ent: and (II) goods IInd other ta.nglble
property dell'l'ered to purchnser6: IInd (2)
nmounts becoming owed to the recipient for
whll;h no current services or performance Is
required by the recIpIent.
c. Fcderal lund., authorizcd.-Federal
funds authorized aI" the total amount of
Federal funds obligated b)' the Federll-l Gov-
ernment for use b)' the recipient. Thl!<
nmount may incJude any authorized carry-
over o! unobligated funds from prIor fiscal
years when permitted b)' jllw or agency
regulation.
d. in-kind contribution.s.-In-klnd con-
trIbutions are delined In Attachment E to
thl~ circular.
e. Oblipation.s.-Obllgatlons lire the
amounts of orders placed, contrRcts and
grants a"'"rded, services received. and simi-
lar transactions during n gIven perIod thnt
...'ill require payment by the recipIent during
the same or a future period.
r. Outlays.-Outlnys or expenditures repre-
sent charges made to the project or program.
They may be reported on n cllsh or accrual
basis. For reports prepared on a cnsh bllSls,
outln)'s arc the sum of actuIII cash dlsburse-
mcnl.' for direct charges for goods nnd serv-
Ices. the BtnO\lnt of indirect expense chnrged.
the "allle of in-kind contributions npplled,
nnd the amount of ca.sh ndvsnces and pay-
ments made to subreclpients. For reports pre-
pared on an accrual basis, outlllYs lire the
stun or f\ctun.l cn.sh dtsbursc,ments for direct
(;h:'\rr.e~ for ~oods :\nd ~er\'lcc5.. the nmount
('If lndlr('r~ r:':",f'f'l1sr 1nr\lrr~d. t.he vnluc of 1n-
I
Office of Management and Budget Circular A-110 (7/30/76)
kind contributions applled. and the net In-
crease .(or decrease) In the "moun Wi owed by
the recipIent tor goods "nd other property
received, tor 6ervlces pertorme<! by employ-
ees, contractors. subreclplents and other
payees and other amounts becoming owed
under programs for which no current serv-
Ices or performance are required.
g. Pro9ram tn.come.-Program Income Is
defined In Attachment D at thIs circular. It
may be reported on a c....h or accrual b.....ls.
whichever Is used tor reporting outl"y..
h. Unabli9ated balance.-The unobligated
balance I. the portion of the funds author-
Iud by the Federal spon-"Orlng agency tha t
h..... not been obligated by the recipient and Is
determined by deducting the cumulative
obligatio"" lrom tbe cumulative tund. au-
thorized.
I. Unliquidated obli9atIOn.l.-For report.8
prepared on a ca.h' b....I.. unliquidated obli-
gation. repre.ent the......mount 01 obllgatloIlB
Incurred by the recipient that hI" not been
pAid. For report.8 prepared on an accrued ex-
penditure b.....t.. they represent the amount
ot obll~tlon. Incurred by the recipient tor
whlcb an outlay h..... not been recorded.
3. Only the tollowlng torms ,,'Ill be au-
thorized lor obtainIng financial IntormAtlon
lrom reclplentll.
a. Ffn;>ncial Statu. Report (Exhibit 1).
(1) Each Federal sponsorIng agency shnll
require reclplent.s to use the standnrdlzed
FinancIal StatuS Report to report the .tatus
ot tunds tor all noncorultructlon projects or
programs. The Federal sponsoring agencies.
may. 110wever. have the. option ot not re-
quiring the FInancial Status Report when
the Reque.t lor Advance or Reimbursement
(paragraph 4e.) or Report 01 Federal C.....h
Transactions (paragraph 3b) Is determined
to provide adequate Intormatlon to meet
theIr needs. except that a final FInancial
Status Report shall be required n t the com-
pletion. at the project when the Request tor
Advance or Reimbursement lorm Is used only
lor advances.
(2) The Federal sponsoring agency shall
prescribe whether the report shall be on a
c.....b or accrual b.....ls. If the Federal sponsor-
Ing agency requires accrual Intormatlon and
the reclplent's accountlng records are not
normally kept on the accrual basis. the re-
cipient shall not be required to convert Its
accounting system. but shall develop such
accrual InformatIon through best estimates
based on an analY61s at the cocumentatlon
on hand.
(3) The Federal sponsoring agency shall
determine thetrequency. ot the FInancial
Status Report tor each project or program
considering the size and complexIty of the
particular project or program. However. the
report shall not be required more lrequently
than quarterl)' or less trequently than an-
nually except as provide<! In subp"rngrnph
380 (I) above. A final report shall be required
at the completion 01 the agreement.
(4) Federal sponsoring agencies shall re-
quIre reclplenWi to submit the Financial
Status Report (original and no more than
two copies) no later than 30 dnys "lter the
end 01 each specified reporting period for
quarterly and semi-annual reports. and 90
days for annual and flnal reports. Extensions
to reporting due dntes may be granted upon
request 01 the recipient.
b. Report 01 Federal Ca.sh Transactions
(Exhibit 2).
(I) When lunds are advanced to
reclplenlll through letters at credit or with
Treasury checks. the Federal sponsoring
aBencles shall require each recipient to ~ub-
mlt a Rep:>rt of Feder,,1 Ca.h Tran~tlons.
The Federal sponsoring "gency shall use thl.
report to monitor cash advallced to recipIents
"nd to obtain disbursement .Informatlon lor
ea.ch agreement from the recipients.
(2) Federal .ponsorlng acencles may re-
quire torecasWi 01 Federal cllSh requIrement.
In the "Remarks" ~ectlon at the report.
(3) Whon practlcl\l and deemed nece.."ry.
the Federal sponsorIng agencIes may require
receipts to report In the "Remarks" sectlon
the "mount of cash Advance. In excess of
three uays' requirements In the h"nds of sub-
recipients and to provide short narrative ex-
planal,lons of actIons t"ken by the recIpients
to red uce the exceS3 bnlnnces.
(4) Recipients sh,,1l be required to submit
not m:>re than the original and two caples at
the Report 01 Federal Cash Transactions 15
working days tollowlng the end of each
quarter. The Federal sponsoring agencIes
may require a monthly report lrom those
recipIents receiving advances totaling $I
mllllon or more per year.
(5) Federal sponsoring agencies may waive
the requirement lor submission of the Report
at Federal Cash TransactIons when monthly
advances ~o not exceed $10,000 per recipient.
provided that such advance.! are monItored
through other torms contained In...thls at-
tl-chment. or l!. In tbe Federal sponsoring
as-ency's opinIon. the reclplent's accountlng
controls "re adequate to minimize excessive
Federal advances.
4. Except as noted below. only the tollow-
Ing lorms will be authorized tor the reclpl-
en~3 In requesting advances and relmburse-
menWi.
a. Requesl lor Advance or Reimbursement
(Exhibit 3).
(I) Each Federal sponsorlng agency shall
adopt the Request tor Advance or Reimburse-
ment as a standardized torm lor all noncon-
structlon programs when letters-at-credit or
predetermined advance methods are not used.
Federal sponsoring agencies. however. have
the option 01 usIng this lorm tor construc-
tIon programs In lieu 01 the Outlay Report
and Request lor Relmburseme:lt for Con-
struction Programs (subpar~raph 4b).
(2) RecIpients shall be I\uthorlzed to sub-
mit requests lor advances and reimburse-
ments at least monthly when letters-ol-
credit are not used. Federal sponsoring
asencles shall not require the submission at
more than the orlglnl\l and t,\'o caples 01 the
Request lor Advance or Reimbursement.
J
A-110:4
b. Outlay repoTt and Tequest for Teim-
bllT.H>11lrnt lOT construction progTonl!i (EI.
hibit 4:,.
(I) E:nch Federal r.ponwrlnc agency shall
..dopt the Outl..y n"port and Req\le-st lor Re.
Imburs"mcnt lor Construction Progrnms a,
the Sl3.ndardlzed lorm..t to be \lsed lor ,.-
questing reimbursement lor constructlon
programs. The Federn.1 sponsoring ngencles
mal'. howe\'er. have the option 01 substitut-
Ing the Request lor Advance or Reimburse-
ment l"orm (subparagraph 40.) when the
Federal agencies determine that It provlde-s
nctequnte IntormAtlon to meet their need~.
(2) Recipients shnll be authorized to sub-
mit requesWi :or reimbursement at least
monthl)' when letter~-ot .credlt nre not used.
Federal sponsoring agencies shall not require
more than the orlglnnl and two copies 01 the
Outla)' Report and Request tor Reimburse.
ment tor Construction Programs.
5. ""hen the Federal sponsoring agencies
need n,1dltlon..1 Inlormatlon In using these
lorms or more Irequent re.porl!;. the lollowlng
shall b" observed:
. a. When additional Intormatlon Is needed
to campi)' with leglslntlve requirements.
Federal sponsoring ngencles shall Issue In-
structions to require reclplenWi to submit
such Information under the "Remarks" sec-
tlon at the report.~.
b. When necessary to meet specIfic pro-
gr~m needs Federal sponsorIng agencIes shall
submit th~ proposed reporting requlremenWi
to the f'lnanclal MAnagement Branch. Budget
Review Division. Omce at Management and
Budget lor approval prior to subm1.'>Slon at
the reports tor clearance under the pro-
visions of OMB Circular No. A-40.
c. When a Federal sponsorl ng agenc)' has
determlned that a reclplent's accounting 6YS-
tem dc.es not meet the Standards lor FI-
nanclsl Manaseme:>t contained In Attach-
ment F to this circular. additional pertinent
Informntlon to turther monItor granWi and
other "s-reements may be obtained upon
written notice to the recipient until such
time n.s the system Is brought up to standarcl.
d. TIle Federal sponsoring agency. In ob-
tainIng Intormntlon as In paragraphs a. b
and c a.bove. mu:.' comply with report clear-
ance requlremen~s at the Office 01 MalUl.ge-
ment and BUdget Circular No. A-40. ..... reo
vised.
6. Feder...} sponsoring agencies have the
option of shadIng out any line Item on I\ny
report that Is unnecessary lor declslon-mak.
I no; purposes.
7: Federal sponsoring agencle~ should ac-
cept the Identical lnlormaUon frolY, the re-
cl!,lents In machIne usablc tormat d:- com-
puter prIntouts In lieu of prescrlbe<!lormats.
8. Federal sponsoring age ncles may pro-
vide com!,uter outputs to reclplen ts when It
will expedite or contribute to the accuracy
01 reporting.
9. Feder..l sponsoring agencies arc author-
17.ed to reproduce these torms. The lorms lor
reprod \lcLlon purposes cnn be obtained lrom
the Omce of Man3.gement and Budget.
FINANCIAL STATUS REPORT I. '[OrftAl "OlNCT AHO OJtGANIUnOHAlIU"(N'T TO WHICH MP"OPfT II tV,wITTlD .. HO"'-', a.""... 0" 0,.,.[" 100mmHa 17MB Approvod I"'" Dr
"u....[.. No. ao-R0180 I
(Folto1lJ i".'ructionA on Oil b(lck) "'''CES
R[CIr1U'tr O~A""lAnOH 'Nt.... a...l (~rhh tt.iA~Uf. i...t1v..1i.." llr rol.1 C. [MrlOTl~ U>(HTl'ICATlOH HU"U" ,. ~(elr'HHT Acecum HU"'I" 0" ID[HTlnlH<l HU"'(JIIl I L r1P'U.l ftt,-Q1'fT 7. 1'-'111
o n. C NO o CASH n ACCRUAl
.. rrroJ[CT IQAAHl "'"00 1"..;....'~It.,...f) ,. r-t~IOO CQVW:IUO IT Tl41t l'l[r"OIfT
'''OM (H".flll, Il.III, r-e'" I TO (,IIIO...Il.. 4A.. r-....) ,,.0.1.4 l"'e-fA. .... ._.., TO 1"'_111. "e.. .....,
ST MUS OF nJHOS
(0) (h) (<) (d) (.) (f) TOTAL
rROORAMS I FUNCTlONSI ACTIVIT I ES ~ (g)
Het OUtlIllY' prl!viously reportpd $ $ $ $ $ $ $
Tot~1 outlfty, this report period
c..tu: F'roR',,,m Income cnxJlh
Utt outlAYS thil '"port DNiod
(til1t It mi""J lint c) I
Net ovt'"y' 10 date I
(Lint d plu.1 lint d) : .
i I
Ltu.. Non.rederlll ,hAre of outlay'
Tollll (Mual ,hare of outlay'
(f.,i,,~ t minu. rin, I) I
I I
101111 unliquidated oblig8tio"'
---
L"4.. tlon.F'edflrl!ll ,hUll of unllquldahd
oblllJlItlon. ,hown on IIn., h
F&dlltsl ,hlHe of unllquldlllttd obligation I .'
TOllI1 r"dtnlll shArI! of OUtlIlY' .IInd I
unllquidlltlld obfiqlltlon,
Total cumull,live amount or Fl!Idenl fund'
lIuthorlnd
UnobllgatlKl blllAnclI at r('t'jflral rundt OF AUTHORIZED CERTIFYING DATE REPORT
I. TYPE 0' RATE: f",.OVISIONAll 0 P"CD[T["NIH(D n. CllfTl'ICATlOH SIGNATURE SUBMlrTED
(rl,u, ".t" in tJpp-roPr1o(t bo%) 0 o m.A' o rluo I certify to th. b-fl.lIt af my kna'tll't&d;. and ~- OFFICIAL
OI"fCT Ie. 1"'[ I d. TOTAl AMOUNT II. '[DERAl ."ARt lief that thlt report 11 COrTlICt .nd compl~e tod
I"(NS( b. RAT( thllt ell outlaY' .nd unllquldllt~ abllae1lonl TYPED OR PRINTED /lAME AND TITLE TEUPHOtlE (AT<. ,04.,
. ar. for 'h. purpo.u ut rorth In U,. lI.,....rd numb..r ll.,d ntt'?\'tO"\)
:::':..~~:~l:~::;::'~:~" ",~_l..."<# 4....'4 "~,,_,, ... i..I___'w,... u~,.., II, ,..,~ ...on..., u-.y i... .,.,....,.,.......,. w-(ll dacum',"t'.
ITAI'tOAIfO '0"'" 7&0 f7-16l
)-101
EXHIBIT 1
'n",=,tb-.d by ome:. of .....,..."".,.., ..,d Bud..1
CIRCULAR MO. 1..110
J
>
I
-L
-L
o
O'l
I
-'
Office 01 Management and Budget Circular A-110 (7/30/76)
INSTRUCTIONS
Please type or prinllegibly. lIems 1. 2, 3,6,7,9, IOd, IDe, 109, 10i, 101, Ila, and 12 are self.explanatory,
specific instructions for other items are as follows:
I~ Eo'",
.( Enter thfo 81'Tlployer Identlnc.atlon number aulBne<t by
the U.S. Internal Revenue Servic.e or nee (In!l1itution)
c.ode. If required by the F e-der.1 Ipon500rlnl asene)'.
Thl. lpeel! II reurvPd tor IIn account num~r or o1.hl"
identifying numbers thAt may be Issisnnl by the
recipient.
Enter the month. day. end year of the bf:l(innlnJl: end
endlna of thi, proleet penod. rOf formula rrants thet
ert not 8werded on . project bells, show the Brent
po Mod.
10 The purpos.e of vertical calom"1 (.) through (1) Is to
provide fmancial ebb for ellch progfllm, tunctlon, end
IIcttvity in the budln lIS appro"ed by the F"ederalljlOn.
sorln~ ele.nC)'. It additionel columns art nee~ed. use as
meny additional torms es nM'ded end lndlclth page
number In spAce provided In upper right: howevu. the
totels of 811 prOgTlms, functions or ectivltles should be
Ih""",," in column (i) 0' the first page. for a,reements
p6rtelnlng to Soevera' Catalot 01 FfIoderel Domestic
^ss.istllnce pn:>irams that do nol require a further
'unctlonel or .ctl~ty classlflcltion breakdown, enter
under columns (a) through (f) the litle of the program.
for ,r1lnu or other aUlstance aBreements containing
muttlple progrems ....here one or more prOB",ms reQuire
II further brellkdown by function or ectlvlty, use I
s.eperate form for each progfltm showing the Ilpplicable
functions or activlliC'lo In the 5eparate columns. for
l:f8nts or other aui51.ence Ilgreements conlaining sev'
enll functions or activities which 8re tunded from
S.eYefltl progreml. prepare I '5ll1parete form tor each
actlvlty or function when requested by the Feder.:
LPDnsorlng .,ency.
1O.e. Enter the net outley. This .mount should be the nme
as the emount reported In line 10e of the les1 repo"~.
It there has been IIn adjustment to the amount snown
PnrY'loUSty, pleau enaen explanation, SnO'* lero If this
Is tne Inttlal report. .
lOb Enter the total fross program outlays (Iu! rebate-t,
retunds. and other dis.counU) for this report period.
Including dlsbu~emenh of cash realized as. program
incomf.. For reports tl'\8t Ire prePII~ on I cash
basis, oUtl8Y'5 ere the $.Um 01 actual cash disburse'
mrr:':'s for goods and urviee!. the amount of Indire-c1
expense charged, the value 01 In. kind contributions
8'pplied. end the IImount of cash _dvances end
payments made to contractor! end subgtllntus. For
reports prePA~ on an accrued eXPf'nditure basis. out.
lays ere Ihe sum ot actual cesh disbursements.. the
amount of Indj~ expense incurred. the value of In.
kind contriDution~ BPplle-d, end the ne' Increase (or
dKrUH) in the amounts owr-d by the reeipient tor
goods. end other prODerty r,"ceived and tor ~ervices
~r1orm~ by employees, contf'ltC1ors, aubgra,uees, an!::
other paye".
I""" Eo,."
lOc [nl.' the amount of .11 r'lrogrflm intome rudll~ In
this penod that is re-qulrPd tty the term, end eon.
dlltons 01 the federal award to be Ol':ducted from lot81
pmlf'C't cosh. ror nport~ fHf'l"IfI'l'd on e cun bJlsls,
enur Ii'll' .mounl of cash interne received durinR Ihe
,..poninE Pf'riod. For report, prepereod on en accrual
bailS. enter the emount, 01 Income rarnf'!Cl since Ihe
bellinning of the reportine period. Wtlron the Irrms or
condillons e1l0w pro,rllm Inrome to be .dded to Ih.
lotal ftWlllf'd, explain in remen.s, the source, .mount
end disposlHon of the Income.
lOt Enter emount per1elnlng to thfl non.Fr<lerlll shue of
program oullers Included In Ihe .mount .~..n line c.
10n Enter lotal amount of unliQuldele-O Oblil!lI~tlons for this
project or prOBrem, includinF; unllQuld^led obliglltiOns
to subBranteel and coni rectors. Unliquidated obligA'
tions are:
Cash buls---obllgetions Incurrl'd but not .p8id;
Accrv~ expenditure bnia.--obli~ations Incurrt'd but
tor which. en outlay has not been f'!corded.
00 not include any amounts that have be-t'n Included
on IinC':'S a tnrr"ugh ,. On the: fin81 report, line h should
heve e Zero balance.
lOJ Enler the federal ,here of unliquldatP'd oblig8t1ons
sO()\lfll'n on line h. The Ilmount sho.....n on this line should
be the di"erence between the Ilmounls on linn h end I.
10k Enter the sum of the amounts shown on lines E and J.
If the report Is final the report Should not contain any
unllQulcteted obligations.
10m Enter the unobllgale<:l balence of Fedeflll fund~. This
amount s:hould be Ihe dlNerente between lines k end l.
11 b Enter rat" In enect dunne the reporting period.
llt Enler amount of the bas.e 10 which the rate wu applied.
lId [nler total amount of Indirect cor;{ chuged during the
report period.
1 h E.nIer amount of the Federal share Ch8fped during the
report period.
If mo~ then one rate was 8Pplied durin€, the proje-ct
perlod., include a seDarale schedule showing bas.es
against which the Indlfect cost rates ~re applied. the
rnpective Indirect 'alt'S the month. 08)'. end year the
indll"ect rates ~rt in eftect, amounts of Indlf'!'Ct ex.
ptonn charl:ed to the project. and thl' Federal share of
indirect expense cherged to the project to dale.
A-110:6
..
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Office of Management and Budget Circular A-110 (7/30/76)
A-110:7
Approved by Office of ~,.n.R~mflnt and Bud,.t, No. 50-ROJ 82
FEDERAL CASH TRANSACTIONS REPORT 1. ftld!ul NKN'Isonnt all'ftCl' 'nd ofllfliulion.1 .I....."t \0 whlcll this upon
i. IUbmit1.d
(See instructians 071 the bcu;k. If report i.~ fM mon than one pranl or
a.~sistance agreement, att,<Jch completed Standard Form rn-A.)
2. RECIPIENT ORGANIZATION .c. (.0....1 Innl 0( vt~., id.ntiliCl- 5. R..cipi.nl', KC'&U"I ".,mMr ...
lion "umber io.r.tityilll lIu,"wr
Nfnn~ : L l.n., of u.tit flU",b<< 7. ln1. p.y...""t 't'Owch., p\.u~bH
Nwwtlur'f' Give total number for this period
OM Str"et :
8. P.,mrnl Vouchen cr..oih.d I. 9. Yr...ury thee\. rKli",d ( Lok..tthrr
)'OUr ac::c.oont err J\.Ot dr:po,iltd)
City, SUJt~ 10. PERIOD COVERED BY THIS REPORT
o..d ZIP Cod.:
3. FEDERAL EMPLOYER ~ FROM C'mofttk. dav. ...~r) TO (",ofttk, doy )'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 oj lines b and c)
CASH e. Total cash available (Sum oj lines aflnd d)
f. Gross disbursements
(See 8pecific g. Federal share of program income
ins truc tion.~
on the back) h. Net disbursements (Line J minlLs line 0)
i. Adjustments of prior periods
j. Cash on hand end of period $
12. THE A\10UNT SHOWN 13. OTHER INFORMATION
ON LINE IlJ. ABOVE,
REPRESENTS CASH RE- a. Interest income
QUIREMENTS FOR THE $
ENSUING
DO-v8 b. Advances to subgrantees or subcontractors $
t .
14. REMARKS (A /tach addit.4onal sheets oj plain paper, iJ mMe space is reqlLired)
15.
, certify to the best of my
knowledge and belief that
this report is true in all re-
spects and that all disburse'
ments have been made for
the purpose and conditions
of the grant or agreement
THIS SPACE FOR AGENCY USE
272-101
EXHIBIT 2
AUTHORIZED
CERTIFYING
OFFICIAL
CERT! FICA nON
SIGNATURE
TYPED OR. PRINTED NAME AND TITLE
(Ar.... Cod.)
(Nv",b..,.)
TELEPHONE
DATE REPORT SUBMITTED
(LztellW't.o")
STANDARO rORo.l 272 (7-76)
Pre,...ribfl'<1 by Otflce of Mllnl'l['~m..nl IInd AudQ"<<'
I
.I
Office of Management and Budget Circular A-110 (7/30176)
A-110:8
INSTRUCTIONS
P1ease type Of print legibly. Items 1,2,8,9,10, lld, lle, 11h, and 15 are self explanatory, specific
instructions for other items are as follows:
Ie-
E1ltry
3
Enter employer ioentific:ation number assigned by the
U.S. Internal RevQoflue Servic:e or the F1CE(instifution)
code.
H this report covers more then one grant or other
IIgreement, leave Items 4 and 5 blank and provide the
informlltlon on Standard Form 272-A, Report 01 Fed.
erlll Cuh TranS-llctiolu--Continued; otherwis.e;
4
Enter Federal grant number, egreement number, or
other Identifying numbers if requested by aponsoring
Il~ncy.
5
This spece r~rved for an account number or other
Identifying number that may be anigned by the re-
cipient.
6
Ente-r the letter of credit number that Ilpplles to this
report.H 1111 advances were made by Treasury check,
enter "NA" for not applicable and leave items 7 and 8
bl8 n k.
7
Enter the voucher number of the ~st letter-of-credit
peyment volX:her (Fonn TUS 54(1) that was credited
to your account.
lla
Enter the total amount of Federal cash on hand at the
beginning of the rt'lporting period Including all of the
Federal funds on deposit, Imprut funds, and und&-
posited Trt'luury checks.
llb
Enter total amount of Feden,1 funds f9C1lived through
payment vOlX:heo (Form TUS54(1) that were credo
Ited to yoyr account during the reporting period.
llc
E~ the tota' amount of ell Feder&l funds received
during the report)"" period through Treasury checks.
whethef ex not d~ted.
llf
E..te(' the total F~' ClIsh disbursements, mllM
ckIring the ~ period. klclvdlng cash received
M ~m Inc.omc. Disbursements u used here also
k-ocIude the amololnt of advances and payments Ies.s
re+vnds to subgrarltMs or con tnctors, the gross
amount 0{ direct ulariM and YoOe€K, includini the
Entry
If em
emplopee's share of benefits if treated as a direct cost,
IOterdepartmenti\1 charges lor supplies and services,
and the amount to which the recipient is entitled for
Indirect costs.
lli Enter the Federal share of program income that was
required to be used on the project or program by the
terms of the grant or agreen:'.;nt.
lli
Enter the amount of ell adjustments pertaining to prior
periods affecting the ending balance ttlat have not
belln includ.d in any lines above. Identify each grant or
llll'reernent for which edJustment was made, and enter
an explanation for eIlch adjustment under "Remarks."
Use plllln sheets of ~pe1' if additional splice is required.
llj
Enter the total amount of Federal cash on hand at the
end of the reporting period. This amount should Include
all funds on deposit, imprt'lst funds, and undepo~ted
funds (line e, less line h, plus or minus line I).
12
Enter the estimeted number of days until the cash on
hand, shown on line Ill, will be expended. If more than
three days cash reqirements are on hand, provide an
explanation under "Remarks" as to why the drawdown
WIll made prematurt'lly, or other reasons for the excess
cash. The requirement for the explanation does not
apply to prescheduled or automatic: advances.
13a
Enter the llmount of Interest earned on advances of
Federal kinds but not remitted to the Federal agency.
If this Includes eny amount earned and not remitted to
the Federal sponsorinc agency for over 60 days, explain
under "Remarks." Do not report lntNes! earned c>n
advances to States.
13b
Enter amount of advance to secondary recipients in.
cluded in item 11h. ..
...
14
In addition to providing explanations as required above,
Ciw additional explaMtion 6eemed necessary by the
recipient and for ink>nnlltion required by the Federlll
sponsoring agency in complillncl with governing legis-
la-tion. Use plain sheets of paper If additional spac. is
required.
q-
I
.I
Office of Management and Budget Circular A-110 (7/30/76)
A-110:9
'~pp'o"ed by Office of Manelt'emf'n\ en, 8udvet. No.
80_ROIE:1
1. FEDERAL SPONSORING AGENCY iND DRGANIZA.
1I0NAL ELEMENT TO WHICH TH~ RlPORT IS SUB.
MITHD
3. PERIOD COVEREl> BY THIS R(J>QRT (A. .h""',, 0" SF
171)
FEDERAL CASH TRANSACTIONS REPORT
CONTINUATION
(ThiB fCT'm iB c"",pl,,,.d and all",hrd to StaNinrd FM'Tn 171 ""IV wh,,,
,.t_ro-rtinp 'mC1'"t th4n (mI prnl'lt (11" (l~8i..At(l7U'C aprttmtnL)
2. RECIPIENT ORGANIZATION (Gi'" "n.... onlV 11-' ,hOlL'" in i',m 1, SF
171)
fROM I~o..u},. __,.. ._r)
I TO (H_rJr~. 4.1.. .,,4'"
4. List information below for each rren\ or other asreement covered by tnll report. Use additional tarm!. if more space IS required.
FEDERAL GRANT OR OTHER IOE"TIF I RECIPIENT ACCOUNT NUMBER I FEDERAL SHARE OF NET DISBURSEMENTS
CA liON OR OTHER
IOENTtf"VING NU....O[R NCT DISBURSEMENTS (v..ou CUMULATIVe
(3how G ,ubtiiwwn bv other idfmLi.. ....".......... h.. "_0._'" .- HO DISBURSEMENTS
tym", numbf'r. if _equired bv th. u...... .",........ FOR R[PORnNG
f .d....nl Sp"""...,"gA D'''CV) PERIOD
, a \ ( hI Id Cdl
$ $
,
.
.
\ .
.. ,
.,
5. TOTALS (Shculd CO"T"PIJ'nd ".ith ".....un!.> .hew" on SF !71 "-' I
fol,owa: cO~\.Lmn fe' t~ uun..t. Q..$ li.nt 1 Jh; eoJu.:rr~n fa) tht .1':m. o/Iines
J J)oj GMd I JI, flf Ihls .SF ~7! o.J'I.d cumuLo.t\vt d1..Jbu,....emcnu !hO'U", 0'"' I
tQ..CIt rtpO:rt. A. !toen "zpl.a.rl.ation ~I o.71.V diD~ren.c.Cl..) $ $
2n-~Ol
STANDARD FORM 272-J.. (7-76)
P....crlt...,,' i.... 011..... "I Mc...oc..m--.t (T"ld S..d;...'
Office of
Management and BUdglt
"'Iocular A-110 (7/30/76)
.1
Approved by Office 01 Monelemenl and PAGE o.
REQUEST FOR ADVANCE Budlel. No. llC>-RO 183 PAGll
a. oor'..... ~ ..till....... 2. BASIS Of REQUEST
OR REIMBURSEMENT 1. o AOVANCE o A[IMBU"S[. o CASH
TYPE 0' M(NT
',AYMEHT b. "Z" tJw ...p&.ooN&. ...
(Su .",trwdioM em bo.ck) REQUESTED 0 'IN....L 0 "AATIAl 0 ACCIltUAl
J. ~~~~~H~:OR~~I:~S Ast[:SI;':[~O ORCANllA110NAL ~lEM(NT TO .. .[O[OAl GIlANT 00 OTH[O ) Ii "OTiM: .PAY"'NT O[QU~
IDENTIfYING NUMBER ASSIGNED NUMBE.R fOR THIS REQUEST
BY rt.DEAAL AGENCY
L U,PlOY[R IO(NllrICAnON 1" O[el',[NrS ACCOUNT ..U..,[O B. PERIOD COVERED BY THIS REQUEST
HUWSE" OR IOEHllrYlNQ HUMBER rRO" (_" ~.. ....rJ TO t_&A.. ......-.-)
to R(Clpt[HT OIlGANIUTlOH 10. ''''Y(E (W"-. ~.... k,_C WI "'.r_1 u.- i~')
H.~ : 11-.- :
H_'" H_'"
.~ 'In<< : .-l.sl,..c :
C.,..llI...... C",.S....
.u Z1r C"J.. : ..01111' 1:'..10 :
11. COWPVT A TlON OF AMOUNT OF REIMBURSEMEHTS/AlWAHCES REOUESTI:D ..-
(co) (h) (e)
PROGAAMI/FUHCTIONS/ACTIVITIES ~ TOTAL
a. Total prtlfram (A. of dGl.)
outlaYI to dalo $ $ $ $
b. J.,...: Cumwlet;v. DfORram .ncome
c. ~.: ~m outleys (Lnw 0 "'~
d. ~mated net C8lh ou<<ayI for advance
per10d
.. T"'-I (SM'" of n..... cI: dl
1. Non-Federal.....re of amount 0f1 Hn. .
.. r ederat ttMre O'f amount on line e
h. federal peymentl previouaty requKted -.
1. Federal .h.,. no.w requened (U~ p
.............. htw ")
). """"nee< rtoQuired by lot month
mont h. wn.n noqu..t..c1
bt 'eoeral .....rrtor eg.ncy
for u... In makinr ~. 2nd month
tclM<Swled advencea
3rt! monltl
12.
AlTl:RNATl: COMPVTATlON F'Of\ ADVANCES ONLY
ao Ut;melod Foderal cnh outley, that will be made durinc period COYe<od by tho edvanc.
$
~. Lu.: Estimated bel.nee of federal ca.h on hand., of beVinning of edYBnc:e period
t. Amount r.quM'ted (U"", 4 minwl Ii"", b)
13.
CEJlT IFlCIHION
SICNA T\lRE Of A\lTHORllEO CERTtf"YINQ Of"CIAL
I DAT( REOU(ST
SUBW'TTLD
I eartHy Ihot \0 the beot 01 my hnowlod,.
and belief the data .bow are correct and
tMl all outleY' were made in accord. net' TYno OR. "'UNTED NAME "'"0 TtTL[
Mth the Q'r'Ilnt conditions or other .lrM.
",enot and that payment i.. due and ha. "'at
...n prwvlou.1y r.ou_ed.
r-.-
I..........
TD..(,.,..ON[
(-~
N. op.Ke Iw ....-r ..-
%7<'-101 EXHIBIT 3
aTANDrAI8' P'OfllM no (7-76)
~K"~bed b7 Oft\~ ifili ...........".."' ..n' 1aUCllre\
CIRCuL loR NO. A.1I0
Federal Grants MarlaQement Handbook September 1978
A-110:10
'\
..
Appendix I
-r~\
I
.1
Office of Management and Budget Circular A-110 (7/30/76)
INSTRUCTIONS
Please type or print legibly. Items 1. 3. 5. 9. 10. II c. lIe. Ill, II g, II i. 12 and 13 are self.explanatory:
specific instructions for other items are as follows:
It.... Ent",
2 IndiClte whether reQuest is prepared on Clsh or ac.
cruf"d expenditure: buis._ All requests for adv.nces
shill be preparf'd on II cesh basis.
Enter the Federal grent number, or other identifying
numbe-r auigned by the }:ederal .pon~orinl agency. II
the _dvence or 'eimbu~ement is lor more then on.
If'll"t or other egre-emenl, In!oert N/A.: then, sho..... the
BBErell-te amounts. On a s.eperete .hed, list .lIch
grant or egt'ftment number end the Federal shere of
outlays m80e 1118i"SI the Irani or agreement.
6 Enter the emp'oyer 'dentilic8tion number anigned by
the U.S. Internal Rrvenue S4Nice, or the FleE (in.titu.
tlon) code it ~ut"S1.ed by the Federal agency.
Thi, spec_ is rnerved tor an account number or other
Identityint number thet ma)' be assigne-d by the
recipient.
8 Enler the month, dey, and year tor the beginning and
ending 01 the peoriod covere<l in this ,~uest. If the ,..,.
Quest i.. tor an aovance or for both an advance end n.
imbvfl.ement, "hOW the period that the adve nce will
cover. II the r.Que'lt ... tor r.imbunement. show the
p.riod ior whiCh the r.imbunemenl is requested.
Note: The fed.ral sponsoring agenciu haw the option of
reQuirins rec:ipil'f1tl to complete Iteml 11 or 12, but not
both. Uem 12 should be: uJ.ed when onl)' a minimum
emount of intormetion is n&eded to make en advance
end outlay information contained In Item 11 Clln be
obtain.d In e timely manner from other rcportl.
11 Th. purpose. o. the vHhcel ~umnl (e), (b). and (c), j,
to provide _pece tor seperete cost breakdowns when a
rro;ect has been ptann..cl and bwd@ele-d by program,
junction, or activity. II additional columns are: neede-d.
11,.". Entry
Ul!: U man)" additional torms .s n~ed end in(1iule
pale numtMtr in space provided In upper right: hoN'
rver, the summary tohls ot ell prosreml, tunc-lions,
Of' ac1lvilies should be shown in the "\olel" colu'nn on
the first page.
J h Enter in "u 01 d"te", the month. day, end yel!lf of the
.nding 01 the accounting period to W'hi4'"tl this emount
applies. Enter program outlays to detf' fr'et of relund...
rebel". and dlscoonh), In the eppropnete columnl.
for reQu~ts ....repared on e cash buis, ouUaYI are the
.um 01 actual c.uh disoors.tmenu tor 100<11 and s,.erv.
tc~. the amount of indirec\ expenses Chafled, the
v.lue of in.kind cont,ibution., applied, end the amount
01 CIIlh edvAnce-s and paymenu made to lubeontrac.
ton end lubrecipients.. for requests prepered on an
accrued e~pendi\ure basis., OUtlll)'S ere the s.um o' thf
actulIl cash dlsbun.ements, thp. amount of Indirect U.'
penses incurred, and the net Increas.e (or decrease) In
the amounts owed by the recipient tor loods. and other
property received Bnd lor servtC"" ~"'ormed by em.
ployees., contl'1lCb. subgrantees and other paye-es..
1 J b [nltt the cumullltiyc cash income received to date, H
reounls .,t prepared on I cas.h balis, For ri!'Que-sts
prepar.ct on an aecf"\M'd expendttun bas.is. enter the
eumuletive income eamed to date. Unde< ,l1hl" bas;s,
enter only the amount applicable to pr0gr8m income
that W81 required to be us.tKj tor the projed Of pro-
,ram by the terms 01 the grJInt or other agreement.
lId Onl)'...men milking reQuests for advence ~ymlfnts.
enter th. total .s1iman,d emount 0( c;.as.h ouUeys that
...nil be mad. during the period covered by the edy.nea,
13 Complete the certiflc.tion b1ftor. submirting this
reQuest.
..
A-110:11
'\
I
.I
Office of Management and Budget Circular A-110 (7/30/76)
Appf"Ov~d by Office of Manlllement and ~ACE or
OUTLAY REPORT AND REQUEST fOR REIMBURSE. BudRot, No. Bo-R01BI rAQrs
MENT fOR CONSTRUCTION PROGRAMS 1. T'Yf'l 0' "'(OU(51 1. ftA$IS 0' A[QUtsl
(.c:.~, ''''1'ntd,lMU Oft back) 0 fiN.....\. o "AJHIAl o CASH o ACCIltUAl
J. HO[AAl ,PONSORINQ AG(NCY ,.NO ORGANIZATIONAl. H[uLNT TO C. ([D(U.l CRAHT all OTH[R s.. 'ARHAL PAYMUH REQUEST HO.
WHICH THIS REPORt 1$ SUB/IollTIED IOENTlNtNO NuWeUI AS.$ICNlO
BY flO(AAL AGENCY
6. ~~~l80(YFl[A to[NTlnCATION 17. .[C,.,[NT ACCOUNT O. OTN'. nl10b CO'fDtP t1' ntn: Idron
IDlNTlfYlNQ HUhC8(A
'''0'' IN-"'. ~,. ...-.-1 TO tltl~ .... .-.J
I. RtCI",'ENT ORQANllATIOH ID. "AYU I"'~"".......u... -' U 4J.I--' u.- U-"
H._ , H_ :
N.. .~ N......,
..- , ...... :
cu" "'""
$LaU ..wI .5...... ...,
~/f' Cod.. : Z'I' C_.:
11. STATUS Of fUHOS
PROG RAM5--fU NCT ION s--.o.CTIVI TI [S
CLASSIfiCATION (G) (b) (e) TOTAl
..-
.. Admlnlstr!hve "xpen,e $ $ $ , $
b. PrellmlnBry u.penM
c. Lend. ItNcturu, nght-of.wIY
d. A.rehitKtund engineering besle fefl I
8. Other erchltectural engineering froe,
I, Project Inspection 'eon I
E. und development I
h. Relocl!ltJon expense I
I, Relocation pZlyments to Individuals end
businesse~
I, Oemoll1.loo end removal .
k. Construction and project Improvement I
cosl
I. EQuipment
m. Miscellaneous cost
n. Total curnulltive to dele (sum o,"lines I I
II thru m)
o. Deduction! 10r program income I
p. Net cumulative to date (Line n minus I
line 0) . .
o. fedoral share to oa\e I I
r. Rehabilitation Brants (100% r.;m.'
bUr'lemenl)
.. Toul federal share (sum 01 lines Cl I I
end r)
t. Feoeral payments prf'viously re.,
quested
u. Amount reQue-sled for reimbunement I s
v. Percentas! of ph~ic.al completion of I
project
12. CERTIFICATION
I certify that to the best of my knowledge
Bnd belief the billed cost~ or disburse.
ments are' in accordance with the Irrm1
of the project and thilt the rt'imbun.ernent
repreunh the Federal shere due whitt,
he, not been previously reQueste-d end
that an inspection has been per10rmed
.!lnd 1111 'HOrk is In lItcordance with the
terms of the ewud.
:'lI-J01
EXHIBIT
I
Is
I
Is
I
Is
%
%
3IGHATUR[ 0' AlITHQRll(D CERlInlNG
O"ICIAL.
%
.. R[CIPIENT
TYPED OR PRINTED NAME ,,~O Till[
IDAT( R[F'ORl
SUBMITlLD
I TEL[,.HOH( I"'.... coW,
.._b~ .... _..-)
DAn SIC~[O
SION,l.TUR[ 0' AIJTHORIZ[O CERTlf'YING
0" I CIA\.,
b. Representative
certifying to lint
11v.
TYPED OR PRINTED N""'[ AHD TilL.[
Tf;l'[PHON( t.A.- rcoU
,..-J.rr --" ............,
"......O"'Rn ron... :71 17-761
"...,..~OI.."" t., (1M.,,;. n' t..\.n.,...~."'" .n('I f\urtrPl
A-110:12
.. "
%
"
I
.1
Office of Management and Budget Circular A-110 (7/30/76)
INSTRUCTIONS
PI~e,. lyp<l0< print legtbly. 1\""'.3....5.8.9. 10. 1 h. and llv are ..If-expl"""lory; specific instructions
for othar It~m. ... as tollOWl:
It_ .......,
M.rk ..... ...,.,.,tef'....w flIoIt. H th_ reQueS't .. tin.... the
._.......... ~.... ...,Ld .....,......... the .....1 00IIt of bot.
---
Z Itw-' ~"h.... aJllOOunb an ~ en ... .c:erved
lIlXip4n4tw,. .., ..~ thl~.1"'t .........
........r .... .""l"'-V.r kk-nUf'tcrJtt1on AumMr .........d by
the U.S. Int.""",," A......n.. ~e let" ne( (klstltvhon)
ood. ~ 19quenoe l>y _ '..,.....1 _I'C)').
T1"lli .,..c. k ~ tor an aCO(lUnt "umber Of' ~"'
klenltty1na __ "* ""'Y N .......,j by -
.-It>I.nt.
II Th. ~ 0{ __I _m... 1-1 IhlOlJllft Ie) k III
,.JlfW'io. ~" t.f ...,.,.,..,. ...c. ...,...~ ~ .
_t1I411 p~ h.~ ~ ~ft""" aM ~ed by pt'Oo
.""". ~" Of M"ttv11y. tf "~I'\al ~umnc are
~ed. UK a, .....ny .6dttlO"1!J1 kwtnc .. ......eject aft14
...00'. ,...,. fWfnMr tf\ .,.... ~ in ...... right;
~r. -.n. ~ma'Y ~k .( .N ,.rogt1lrnc." tv.....
"'nl, N .~ ahould t., .~ In ,he .~,...
eoIumfl en the aM ,...... All .~ .... ~ecI eft
. .umu~ MM.
1.. I""",, ........... _ndod Ie, woh -.. K mr-l. ~I
..... nont.II1. m \Il9hlc.t.t.l and' .,.., II't'heor IIdmtnl'StrwttY'O
.....~. ~. the .meum of "tnt.f'tISlt ~
"",.n ._ by ""'l/,,.... ~""'. "*' .-
\tw amount M ~ ....,....... . ..p.nrw ""..t.,
lilt -.. _ ~"lnE too _ -n. of \oocat;"C .nd
.~lnc. tneking w.u~ .....cf ......p&" s.i"~nc '-'t
1-01... .nd .. _ """'" -"Ired prio< III _I
eo...... ....1lIIl.
Uc _.R ....__ dlreelly __ wttII u..........
_ ,.( Iond. ......r ..""""_ 'M ...led ri8ht-o(.
........
I~ _ _ _.... _1M a..hlt~nl "".___
1 ). Ent.r........, .rriltt.ctu~1 en~1"f: ~. Do not
Incluo. anr .~--U ....... ~ line d.
III l_~. _ _ _ of ...........-. _
-~
III [_ .IC __ __ _h .... _...-.I of
_ _.... Oh. "nm.ry ,...,.... of tho ,...nt ;c Iond
~_. The ._ ......"';"1 '" Iond "-'"lo9-
~ ~ -..o.t:ed with I'nejor cenclf\lC'tlon
~ ... ..ow~ Jf'9n\ tn.i& c.-l-eory and ent"" on
_ k.
Ilk lMo<____"'~_
~.~..nod ~ c:osts O'f ~n(~..
""c: t-ct ~). Do not indvd. ..-..ountl. ~ed tor
'.......ho" ..omin;.u.;.i... ~ ""'-'t ."",",na.
IlftOwId 1M ;..dwde4 1ft ~ ....own on ...... ..
II I f.M<o' .... .moun! 0<1 _1?0o pe,....,..,ts ....... ~ ....
f'eCIP\.ent '0 ~ISpLaead ,...,...0"'. Ie",,",. bYsinea. con.
c.ms., and ftOftP'fO_ OIWenlLwti~.
,...... X-,.
11' [l'Itef ~ ..'-nn .ftId ~ at' .mploy..... of the
..ctp6eonC .rotd ".)""'M'"ls to t....rd petty contnw:ton. (t;.
..cur ~ in pertonninl O..-notttlOn or r~1 of
struc:tur-. fnJIm ~ '-f'ld. AA proe..o& trom the
..... of ......... or ttM ~I of strvctu,.. ..houki be
cndfted to thM KCOUnt; therwby ,..l'\ectinl ,..eo{
.~..u. it requu.d by ttMI fMlenlll as-MY.
Ilk [Mer tlloM anlOUl'Ils euociRted with the .ctuel con.
~ of. ao(htkH\ "c. or rffioratton 01 II facility.
/IIho. 6nduck in the. eat~. the amOtJnh 'Of proj.et
'm~ ..-ch .s ............ ..,........,. .."'OKApl"i.
- 1lcMl....
l)f Em<< emotllnb ..". aM .qutpme..t. bott"l t\.e<t and mo'l'.
.bk. ..eN"'" e,( eqvlJl""ent uW'd tor constNettOn. "Of
eu.mP'e. ".rm.lWntty ",ttKhed lrIb0r8tory 'lJble~. buwt.
'" Mldio ~ ..)"~hof""" "'(NlJ~. dnks, chain., and
~ equ;pm.ooL
11", ~""'...-nounts 'Of aM "'-ma not sPKUkaUy men.
-..; -.
11" Ent.... the ~I cumvl.trttw. amount to dele 'Nhlch
.noukl ~.... MHft of .nes a ""l"OUI'h m.
1 Le I:nter the ~ ..rl(M.mt. of prQ@'rBm I"com~ applied to
... ....nt or cont.r8O'l. ~.rrt Deep( Income In.
........... -*" ~ J. Identify 0f'I . "'pIlI",'e shM't of paper
the MJlUR:aS and type& 01 th.e 'ftl$Om..
11, !.mer the IW't cumul.et:i'w amount to deh which shovk1
tic the .~ ~ on HIM' n minus the llmount
... ti.,. o.
1lo1 -"'1'" -.4 _.. of lho .mount .hown on II... p.
) 1r Entwr the ~ of r9heblllt..etlon .",nt peymems
IIrwct. to ind+YWuek -....tlen prar,...m "'i.~"tioft prov<ln.
100 __ peyonent ~ tho fed.....1 .".ner.
III [nlKlho _ _ ,.( F_nl poyn-.ts pnov;.,u.ly
--. " thk "'"" 10 _ lor ~I ,.om.
.....-..
}).., ........ .... ...-oul'l( now ~nc r--q~ tor ~rM'
~ n. ~ tAoukl 1M tha Gi"~~nc. ~..n
the ............. .--, .... ........ . .nd t. If din.unt. ...
...... -. ---
1h To N ~.., l>y .... ~ omc!.l who to ,..
~ tot" ttw oetention cI .... pror"""". Th. dat."
~ "' 'he .au.aJ .... ....... Ionn i. submirted \0 the
F_I._.
lZb To be camP"" by ""'- ~ rep~,.",,,t1V't
whO 1& c.rttty;nc .. the peoroP'" of pt"Ofe<.1 compl.tion
as pt'WYidad tor .... WM ,-""s 0( the 'Nn\ or .Cf"eoeoment.
A .110: 13
'\
I
Office of Management and Budget Circular A-110 (7/30/76)
ATTACH MENT H.-CIRCU1.AR No, A-I I 0
MONrf'OJUNG AND REf'ORT1NC T'F:.OCRAM
PERFORMANCE
I. This attachment sets forth the proce-
dures for monitoring and reporting program
perform..nce 01 recipients.
2. Recipients 'shRll monitor the perlorma:lce
under grants and other agreements and.
where ..pproprl..te. ensure that time sched-
ules are being met, projected work units by
time periods are being accompllshed. ..nd
other perlormance goals are bel ng achieved.
This review shall be made for each program,
function, or activity 01 each agreement as set
lorth In the approved application or award
document.
3. Recipients shRll submit a performance
report (technical report) lor each agreement
that brletly presents the lollowlng InlormR-
tlon lor each program, function, or "ctl\'lty
Involved as prescribed by the Federal spon-
soring agency:
a. A comparison of actual accomplishments
with the goals established fo.r the period, the
tlnc!lngs of the Investigator. or both. II the
output of programs or projects Can be.readlly
quantltled. such quantltRtlve data should
be related to cost data for computation of
unit costs.
b. Reasons why established goals were not
met.
c. Other pertinent Information Including.
when appropriate. analysis and explanation
of cost overruns or high unit costs.
. 4. Except as provided In a and b helo"'.
and In subparagraph 3a( 1). Attachment G.
recipIents shall submit the performance or
technical reports to Federal sponsoring agen-
cies and the Financial Status Reports cov-
ering the same perIod In the frequency estab-
llshed by Attachment G of this Circular and,
where approprln.te. ... final technIcal or per-
formance report a/ter completlon ot the
project on a date specified by the Federal
sponsoring agency. The Federal sponsoring
agency shall presc.rlbe the frequency with
which the performance reports wlll be sub-
mitted ...1th the request for advance or reim-
bursement when that form Is used In lieu
01 the Financial Sta tus Report. Except as pro-
vided lor In paragraph 5 below, perlormance
reports shall not be required more frequently
than quarterly or less frequently than an-
nually. Federal sponsoring agencIes may
waive the requirement for reCipients to sub-
mIt perlormance reports with the financial
reports under the following circumstances:
a. When the recipient Is required to sub.
mlt a perlormance report with a continua-
tion or renewal application.
b. When the Federal sponsoring agency de-
termines that on-site technical Inspections
and certified completIon d..ta wlll be sum-
clent to evaluate construction projects.
c. When the Feqeral sponsoring agency re-
quests annual financial reports on a fiscal
year basis but It Is necessary to get Rnnual
prcgr"s.s reports on a calendar year basis.
5. Between the required performan~e re-
porting dates. .events may occur that have
significant Impact upon the project or pro-
gram. In such Instances, the recIpIent shall
Inform the Federal sponsoring agency as soon
as the following types 01 conditions become
known:
a. Problems. del..ys. or adverse conditions
that will materially arrect the ability to ..t-
taln program objectives. prevent the meet.
Ing or time schedules and goals. or preclude
the attainment 01 project work units byes.
t..bllshed time periods. This d!~closure shall
be accompanied by a statement 01 the nctlon
taken. or contemplated, and nny Federnl as-
sistance Deeded to resolve the sltuntlon.
b. Favorable developments or events thnt
enable time schedules to be met sooner than
..ntlclp/l.ted or more work units to be pro.
duced than orlgln..lIy projected.
6. If any performance rHlew conducted
b,' the recipient discloses the need lor change
I~ the budget estlmates In accordance with
the criteria established In Attachment J Co
thIs Circular. the recIpient shall submit a re-
quest tor budget revision.
7, The Federal sponsoring agency shnll
make sIte visits as lrequently as practicable
to:
a. RevIew program accomplishments and
management control systems, and
b. Provide such technJcal assistance as
may be required.
8. Federal sponsoring ..gencles shall submit
proposed technIcal and performance r~ports
to the Olflce 01 Man/l.gement /l.nd Budget tor
npproval In I\ccordance with the report clear-
ance requirements 01 OMB Circular No. A-<40
as rel'lsed.
ATTACHMENT r.--cmC\JLA" No. A-I 10
rA1"ME)'o1T RCQU1RCMENTS
l. This attl\Ghment esta.bJlshes the re-
quired methods of making p..yments to recip-
Ients. These methods will mInimIze the time
elapsing between the disbursement by these
recipients and the transler 01 funds lrom the
UnIted States Treasury to thcse recIpients
whether such disbursement occurs prIor to
or subsequent to the transler of lunds.
2. Payments can be made to recIpients
through a letter-ol-credlt. an advance by
Treasury check, or a reImbursement by Treas-
sury check. The lollowlng definitions apply
for the purpose ot thIs attachment:
a. Lctter-of-Credit.-A Jetter-ot-credlt Is
an Instrument certified by an authorized olfl-
clal or a Federal sponsorIng agency that aU-
thorizes a recipient to draw funds when
needed lrom the Treasury. through s Fed-
eral Reserve bank ..nd the reclplen t's com-
mercial bank. In accordance with the prol'l-
slons ot Treasury CIrcular No. 1075, as re-
vised.
b. Advancc by Treasury check.-An ad-
vance bv Treasury check Is a payment made
by a TrellSury check to a recipient upon I~
request belore outlays are made b)' the
recipient, or through the use ot predeter-
mined payment schedules.
c. Rcimbursement by Treasury check.-A
reimbursement by TrellSury c.heck Is a Treas-
ury check paId to a recipient upon request
lor reimbursement from the recipient.
3. Except for construction grants and
other constructIon agreemen ts for which op-
tional payment methods are authorized. as
described In paragraph 5, the letter.ot-credlt
method shall be used by Federal sponsoring
agencies If all of the following conditions
exist:
a. Il there ls or wUl be a continuing rela-
tlonshlp between a recipIent and a Federal
sponsorIng agency for at least 1\ 12-month
period and the total amount 01 advance pay-
ments expected to be recell'ed 1.:lthln that pe-
riod from the Federal sponsoring agency Is
$250,000 or more. as prescribed by Treasury
Circular No. 1075. For Joint lunded projects
the Treasur)' has authorLzed a dollar criteria
or Sl20.000. ,
b. it the recipient has established or dem-
onstrated to the Federal sponsoring agency
the willingness and ability to maintain pro-
cedures that "'ill minImize the time el..ps-
Ing between the transler ot lunds and their
disbursement by the recipIent.
c. II the reclplent's financial management
system meets the standl\Ids for lund control
and accountnblllty prescribed In Attachment
F to thls Circular. "Standards for Flnanclnl
Management Systems."
~. The method 01 advancing funds by
TreasulY check shall be used. In accordnnce
with the prol'lslons ot Treasury Circular No,
-I
A-110:14
1075, when the recipient meets ..II 01 the re-
quirements speclned In paragraph 3. ..bove.
except tllo~e In .ubpan'graph 3a.
5. The reimbursement by Treasury check
method shall be the prelerred method II the
recipient does not meet the requirements
specltled In subpnrl\gr..phs 3b and 3c. ..bove.
At tile option 01 the Feder..1 .ponsorlng
agency, this method may ..Iso be used on any
constructlon agreemen t. or II the m..jor por-
tion 01 the progt..m Is accomplished through
private market nn..nclng or Federl\1 loans.
..nd the Federal assistance constitutes ..
minor portion 01 the program. When the re-
Imbursement method Is used. the Federnl
sponsorl ng a~ency shall make payruen t
within thirty days atter receipt 01 the billing.
unles, the bllllng Is Improper.
G. When the letter-ol-credlt procedure Is
uscd. the recipient sh..1l be Issued one con.
solldnted letter-ol -credl t whenever possible
to cover antlclpnted cRsh needs for ..II grants
and other agreements awarded by the SpOIl-
sorlng agency. Likewise. to the extent possi-
ble. when the ..dvance by TreRsury check
method Is used, advances should be Clln-
solltlnted (pooled) lor all grl\nts I\nd other
agreements mRde by the sponsoring agency
to that recipient. ' ,
7. Unles3 otherwise required by I....... Fed-
ernl sponsoring agencies sh..11 not wIthhold
pnym~nts lor proper chl\Iges made by re<:lpl-
ents at any time during the project or pro-
!:rl\m period unless (1\) a recipient hl\s hlled
to comply with the program objectlves. award
conditions. or Federnl reporting require-
ments: or (b) the recipient Is Indebted to
the United St..tes, and collection or the In-
debtedness ,,'111 not Impair accomplishment
ot the objectives of a project or program
sponsored by th ~ United States.
Under such conditions, the sponsoring
I\gency may. upon reasonllble notice. Inlorm
the recipient thl\t p..yments will not be msde
lor obligations Incurred ..rter a specified d..\,e
until the conditIons are corrected or the In-
debtedness to the Federal Government Is
liquidated.
ATTACHMENT J.--cmc\JLAI< No. A-1I0
REVISION or FINANCIAL PL.ANS
1. ThIs attachmen t sets forth crl terla and
procedures to be followed b)' Federal spon-
soring agencies In requiring recipients to re-
port .devlatlons from financial plans and to
request approvals for financial plan re~
\'Islons.
2. The financial pl..n Is the financial ex-
pression 01 the project or program as ap-
proved during the application ..nd/ol' Q....ard
process, It may Include either ~he Federa\ and,
non -Federal share. or only the Federl\l share.
d~pendlng upon sponsoring agency require-
ments. It should be related to performance
lor program evaluation purposes ....henever
..pproprlate ..nd required by the Federal
sponsoring agenc)'.
3. For nonconstructlon awards, recipients
!:hall Immedlatel)' request approvals from
Federal sponsoring agencies when there Is
reason to belle\'e that within the next s~ven
d..ys a revision wlll be necessary for the
follo....lng reasons:
n. Changes In the scope or the object\l'e ot
the project or program.
b. The need for additional Federal lund-
Ing.
c. The transler of amounts budgeted lcr
IndIrect costs to absorb Increases Indirect
costs or vice versa. U approval Is required
by the Federal sponsoring agency.
d. The expenditures ..s require approvnl In
I\ccordnnce ....Ith ,MC 73~. "Cost Prlncloles
lor Educational Institutions," For all other
awards. approl'al reQuirements for other
Items 01 expenditures may be Imoosed II they
nre consistent ....Ith those In ,Me 73~. No
other requirements lor specIfic Items ml\Y be
I
Office of Management and Budget Circular A-110 (7/30/76)
Imposed unless a devlatlon hB8 been ap-
proved by the Ollice 01 Management &od
Budget.
e. Recipients plan to tr...nsrer tund6 ...Ilotted
tor training allowances (dlrect payments W
trainees) to other categories at expense.
4.. None at the substantive programmalle
work under... gr...nt or other ...greement m...y
be subcontrncted or translerred wUhout prior
approval 01 the Feder...1 sponsoring agency.
This provision does not apply w the purchase
01 supplles, materlnl, equipment, or gener..1
6upport services.
5. The Federal sponsoring Il{;ency mRY
also, ..t Its option. r<",trlct translers 01 funds
c.mong direct cost cn.l.cgorlcs lor awn.rc16 In
",'hlch the Federal shAre exceeds UOO.OOO
when the cumuln.tlve alIlount 01 such tr...ru;-
lers exceeds or Is expeeled w exceed !lve
percunt ot Wle totn.! budget as last approved
by the sponsorlng agency. The same crl\.erls
Shall a.pply w the cumula.tlve amount 01
translers among progra.m6, lunctlons, and
...otlvltles when budgcted scparal.cly lor an
...ward, ex.cept that tbe Fcdeml soponsorlng
Il{;ency shall permlt no trn.nsler tbn.t would
cause ..ny Federal appropriation. or part
thereof, to be used tor purpooC6 otber tban
th05c Intended.
6. All other Changes to nonconstructlon
budgets. except tor lhe ch..nges described
In p..ragraph a, below. do not req ulre ap-
proval. This Includes the use 01 reclplcnt
tunds In furtherance 01 program objectlves
over and above the recipient mlnJmum sbllTe
Included In the approved budget.
7. For construction a.....ards. recipients
shall request prior "pprovals promptly Irom
Federal sponsoring agencies lor budget re-
visions wherever:
.... The revision results trom changes In
the scope or the objectlve 01 the project or
program. and
b. The revision Increases the budget
amounts 01 Federal tunds needed to com-
plete the project.
a. When .. Federa.! sponsoring ..gen::y
makes an a""a.rd that provIdes supporL,IOr
both construction and nonconstrllctlon work.
the Federal sponsoring ..gency m..y require
the recipient to request prior approval Irom
the Federal sponsoring agency bclore m:>klng
any lund or budget tr.anslers between t~e
two types 01 ..'ork supported.
9. ror both construction ..nd nonconstruc-
tlon aWllTds, Feder..l sponsoring "gencles
ShAll require recipients to notlly the Fed-
er..l sponsoring ..genc}' promptly ",'henever
the ..mount 01 FedersJautborl.zcd lunds Is
expec1.ed to exceed the needs 01 the recipient
by more than $5.000 or flve percent of tbe
Federal llward, ..'hlchever Is greater. This
notification wUl not be requlred 11 appllea-
tlons lor ..ddltlonal lund.Jng are submJUed
lor contlnulng grants or contracts.
10. When requesting ..pproval lor budgct
revisions, reCipients shall use the budg"~
lonus tha.t were used In tbe appllcatlon
unless .. letter request "'ill suffice.
11. With In 30 calendar da)'s Irom the date
01 receipt 01 the reques~ lor budget reTI-
slons, Feder..1 sponsoring I\gencles shall re-
vie"" the request and notify the reclplcnt
whother the budget revisions have been ap-
proved. II the revision Is stili under coo-
slderatlon at the end 01 30 calend:>r d..ys.
the Feder..l sponsonng "Cency shall lnIorm
the recipient In wrltlnr of the date when t.be
reCIpient may ey.pect the dccl.lon.
ATTACHMENT K.--CmCUu.R No. A-I10
CLOSEOUT PROCr:DunES
1. This attn.chment prescribes untform
closeout procedures lor Federal g'rants and
other I\greements with recipients
2. The tollowlng definitions shn.il apply lor
the purp06C 01 tht. attachment:
... Clooeout.-The closeout 01 . grant
agreemenl Is the proceas by which a Federal
sponsoring ageney del.crmlnee tb..t ..11 ap-
plleable admJnlsl.r&tlve actions ..nd all re-
quired worl< 01 tbe agreement have been
completed by tbe re<:lplent and the Pedcral
sponsoring agency.
b. Dole 01 completion.-The da'" 01 com-
pletion Is tbe date on whlcb a.! I worl< under
grants ..nd otber agreements Is complel.cd or
the date on 'lbe aW&Td document. or ..ny
, supplement or amendment therew. on which
Pederal sponsorship ends.
c. Duallowed co.t..-Dlsallowed costs arc
those ch..rges to a grant or otber arrreement
that the Pederal spOD-'<Orlng age ney or It...
reprcscntJ\lIve del.crmlnes to be ulll\lIow-
able, In I\ccordance wtth tbe appllcable Fed-
eral cost prIncIples or other conditions con-
tained tn tbo agreements.
3. All Federal sponsorlnc ageocle.~ shall cs-
tabllsh closeout procedures tb..t Include the
lollowlng requirements:
a. Upon request, the l"c<Ieral sponsoring
a[:cllcy sball make prompt payments to a
recipient for ..llow..ble relmbursl\ble cosls
under the grant or othcr ..greement being
close<! out.
b. The recipient sball immediately refund
any bl\lance 01 unobllg..ted (unencumbered)
c!l-Sb that tbe Federal sponsoring agency Ims
advanced or pl\ld ..nd th..t Is not authorized
to be retained by the recIpIent tor use In
other grants or other agreements.
c. The Feder..1 sponsoring agency sball ob-
taln from the recipient wttbln 90 calendar
days alter the d..te 01 completion 01 tbe
..greement ..U tinanclAl, perlormance, and
other reports requlred as the condItion 01 the
a.greement. The ..gency m..y grant extensions
when requested by tbe recipient.
d. When ..uthorlzed by the gr..nt or otber
..greement, the Feder..l sponsor Ins ..gency
sball make a settlement lor ..ny upward or
downw..rd ..djustments to tbe Federal share
01 costs arter these reports are received.
e. The recipient sh..Uaccount lor any prop-
erty I>Cqulred wltb Feder..1 lunds. or re-
ceived lrom the Government In aceord..nce
wltb the proTlslons 01 Atu.chment N to this
Clrcul..r. Property Man..gement Standards.
r. In the event a final audit ha.s not been
performed prior to tbe closeout 01 the grant
or other agyeement. the Federa.! sponsoring
'llgeney sball retain tbe rIght to recover an
..pproprl...., amount alter lully considering
the reco=endatlon6 on disallowed costs re-
sultlng from the tinal ..udlt.
4.. Suspension and termln..tlon procedure.
..re contained In Attacbmcnt L to tbls Clr.
cul..r.
ATTACHME:NT L.-CIRCULA. No. A-IIO
SUSPENSION A.ND TERNLNAT10N PROCEDUJtI:S
1. This ..ttachment prescribes unUorm
suspen...lon and termln..tlon procedures lor
Feder..l gr..nts ..nd other agyeements with
re::lplents.
2. The lollowlng definitions sh..ll apply
tcr the purpcse 01 this ..ttachment:
a. Tcrminolion.-The l.crmlnatlon 01 a
grllnt or otber agreement means "he Cl\n-
cellatlon 01 Feder..lspoD-'>Or5hIP. in whole or
in part, under an agreement ..t aDY tlme
prior to tbe d..te 01 completion.
b. S1L!pcnsion.-The suspension of .. grant
or other agrccment Is an ..ctlon by .. Federal
spoDSOrwg agency tbat temporarUy su~-
pends Federal spoDs~rshlp under the grant
or other "(iTee'i"ent, pending corrective ac.
tlon by the recipient or pending a decision
to termln..te the gr..nt or other ..greement
by the Federal sponsoring agency.
;3. All Federal sponsoring acenclcs shall
provlOe procedures to be lollowed when a
recipient bas IaUed to comply wlth Lhe l.crms
-I
A-110:15
01 the grant or other I\greement and condl-
tlorlS or stAnd..rds. When th...t occurs. the
Federal sponsorlns agency may. on reMon-
able notice to lhe recipient, suspe~d the
grant or other agreement, and withhold lur-
tber payments, prohibit the recipient Irom
Incurring ..ddltlon..l obllgatlons 01 lunds,
pending corrective action by the rcclplent, or
a deelslon to termination In ..ccordance with
par..graph 4. The Federn.! sponsoring ..genc)'
sh..ll allow 1'1\ necessary and -proper costs
that U,e recipient could not reMonablv avoid
during tbe period 01 .uspenslon provld~d that
they meet the provisions 01 the nppllcable
}"e<Icral cost principles.
4.. Federal sponsoring agencies sh..lI pro-
vide for the systematic settlement of ter-
minated grants or other agreements Includ-
Ing the lollowlng:
a. Term/nation lOT couse.-The Fedeml
'ponsorlng agency ma)' reserve the right to
termInate any grant or other agrecment In
whole or In part at any tIme bel ore the date
01 completion, whenever It Is determined that
the recipient has I..Ued to comply wIth the
condlllon. ot the agreement. The Federal
spon.orlng agency shall promptly notify the
recipient In ...rlllng 01 the determlnn.tlon and
tbe rensons lor the tcrmlnatlon, together
..'Ith the efTectlve date, Payments made. to
rcclplents or recovcrles by thc Fedeml spon-
soring agencies under grants or other "Cree-
mcnts terminated lor cause "hall be In ac-
cordance wIth the legal rights and lIabUltles
01 the parties.
b. Tcrmin<1ticm lOT ecmveniencc.-The Fed-
eral sponsoring agency or recipient ma)' ter-
mln..te grants and other agreements In whole
or In part when both parties agree thltl the
continuation 01 the project would not pro-
duce bencficlal results commensurate with
the lurther expenditure 01 funds. The two
parties Shall agree upon the termination con-
ditions. Including the efTectlve date and, in
the case of partial termlnatlons, the portion
to be termlnat.e<l. The recipient shall not
IDcur new obligations tor the terminated por-
tion alter the eflectlve d..te. and shall can-
cel ..s many outstandIng obligatIons as pos-
sible. The Federal sponsoring agenc)' shall
allow lull credit to the recipient lor the
Feder..l share 01 the noncancellable obliga-
tions, properly Incurred by the recipient prior
to term In atlon.
ATTACHMENT M.-CIRCULAlt No. A-lID
STANDARD FORM FOR APPLYINC FOR
FEDERAL ASSISTANCE
1. This ..ttachment 4Pro~ulg..tes a stand-
ard lorm (SF 4.24) to be used b)' public and
.prlvate Institution:; of higher education,
publlc and private hosplt..ls and other quasl-
publlc ..nd private nonproftt organizations ..s
a Illce sheet lor appllc..tlons when applying
for Federal grants under programs covered
by Part I, Attachment A. Ol\fB Crlcular No.
A-95. In ..ddltlon, agencIes are particularly
encour..ged to etxend the use of SF' 424 to
common programs "'1th Statc and local gov-
ernments where this lorm Is now required by
FMC 7<1-7.
2. The SF 424 m..y ..Iso be used, on ..n op-
tional basis. to lulftll the requirements of
OMB Circular A-95 lor a notlflclltlon 01 In-
tent, Irom applicant to clearlnghouses, that
Federal assIstance "'ill be applIed lor. Local
or State clearinghouse procedures wlll govern
the use of the lorm lor this purpose.
3. The standard lorm wlll ..Iso be uscd hy
Federal agencies to report to the clearing-
houses on major llctlons taken on a;::>pllcs-
tlons reviewed by cle..rlnghouses In accord-
ance ..'Ith OMB Circular A-95, and to notify
Stal.cS 01 grants,ln-ald a",'arded In accord-
ance ",'lth Treasury Circular IOa2.
I
I \
Office of Management and Budget Circular A-110 (7/30/76)
OI.lB "'''1''''''01 No. ~211
A-110:16
FEDERAL ASSISTANCE L '""'I'll. I. MI.I'IBER 3. STAn: I. """ B !R
.v-ru ClI.-
C"'NT'S nOH
1. TYPE o f' REAPf'lICA TIOH "'/'PV. .. D,t,lt IOr.HT\- .. OAT[ f__ .......I~ ....
Of eAT lOf( r_ .......... .... rtf.ft
...CTlON o N'I'lICUlOI( 19 .uSIC"EO 19
(Id_."" o "0T1f ICATlOK OF II(T[J'(T (t)pt.) L.....
,.... ,...;..u
He) o REI'01iT Of rEDEIW. ACTIOIi l!<GRI
4. lEG...l ...ppllCANT /REClpIEHT 5. 'f.Of.AAL P:MPLOYf:R IOt:NTI'ICATlON NO.
... AppliC.lnt HII'M :
... O'I,niutiofll U,,1t : ~ I I \. 1 I I I
c. SIrHl/P .0. Bo.x : PRO. I. "UWOER
d. City .. eo.. Ity GRAM b. TlTH
: :
(FroTr4.
I. 31'" : I. ZI' Cod.: rod_oI
k. c...Lu( r....... INo_ Ootolo...
oC 01 ,...,....... No.) :
a 7. TITLE AND DE.SCRlnION Of ...ppLIC...NT. pROJIiCT B. TYM: Of ....,.PLICAI'({ /Rf.CIF'IENT
~ A.-St... ll-e-..u.11)' N:ti.. ~
6-1 "'tnl.'" ..' J- Hit"'" [ouCAtionl1 ha.c111ution
~ C-Substal' J- 'ndi." Trlb4
Dlnri~ 1l.-Ot.O( (.'lponf"l:
[)...County
E-Clly .
~ ' - Sdoool Oltlrld
f-)~'1 ...~ K"....... .'P"f"'"f1rri.ot~ HUn" 0
~ Il ITleI
~ TYPE: Q1' MSISTANC[
j'..a&.,lc G r...-l C-""'ur~..
~ ~u...ll_t.I t..n( '-Ot.er ...trr ",.".,.... IT]
g t-4,.. . ,..-iol. 101<-1.)
10. AREA Of Pl'!O)I!CT IMP...CT (No_... 01 el6U.a. eot61tKM. 11. ESTI~^-rMtm.- 11. TYPE. or ...ppUCATION
Slo.... .14.) BER T ONa ~- c.-R...idol'l (........'_..11..
'BUlUlTING a....R.,,~1 D-Co..U~l,tf.tlo<< lot...-O
&"tn" appropriAt.
U. pROK)SEO ~UN-DINS 1-4. CONGI'IESstoNAL DISTRICT~ 01": 15. TYPE Of CHANGE (Fen' JJc .-r J.h)
S I. APrUCmr .. PJlOlm ~t"e,...... DoHln. ~In.r ISJ'.tify):
I. FIDE RAl. .00 e.-Decr..... D .11,"
t-t"e,...'" Du,..tl'tlll.
b. A1'PlICA~T .00 D~IGl"'" D.....Uoa
16. PROJECT ST"'RT I H. ~JECT (-c._"di..
.. STATE .00
Q,I. Tt T...r -..lA 0..1' DURATION ~..(.rr appro- [IT]
d. lOCAL .00 19 lJ....flu ~k utt,r(.J
..OTIIH .00 18.. UTt_TEO DATi: TO y-- ...-I-A <l4y 19. EXISTING 'EDERAl IDENTlFIC...TlON NUMBER
BE SU&MITTEO TO
l. TOTA.!. S .00 fEDER...l JIOGENCY ~ 19
20. fEDERAL "'GENCV TO RtCEIVE REQU~T 1/'1_ CUt<. 11_ %/1' -o.l 21. REMARKS "'DDED
n 'f.- o No
~ ZZ. I. 1, 'h. Iilnt .,( my knowl.cl,. .IId ......I'f. II. M 'eq~ br' OM8 Cucullr A,-95 thn .ptl4}e.elloa ..., twb-llnK.. pur..111\t KI i~. Nfl.,... R_1"'("?U'
chh i. ""is ,.....,.pJ.u tiDll/applicaUu ... allvchOA' U,.,..ih. to .pp~rllh .1..rl........M1. .IId .11 r..~""a a,.. aruc,luC: ._0 .ti4c:~
g THE I<u, I.' corfKl, )h. ooeumfiftt hI' -
^ppLIC^NT dult .uthoriud by ti-, 'oYIlt"nil'l[ - al 0 0
8 CERTl1"IES ttt. 1""liunt .nd tt-. Ip()lie,url will ........ II)
: TH"'T ~ ""Uk 'h. Itt.cMC ...,..ac-a 10( lit. .ui.a.- C2I 8 0
V I
1 an.. i4 apl)t'O'ted. 0
(l) .
~ 23. I I. TV rEO /VJol! AHO Tin! ~. IIlttv.T\JRE L O,t,TE SIQItE.O
t; CERTlFYING1 y-- .......... <14. .
REpRE.
.. 19 ~
.. SENT...TIVE
:1-4. AQf.NCY NAME 2S. ...ppLICA. 1'__ ~ ...y
TlON
RECEIVED 19
26, ORGANIZATlONoAJ.. UNIT 11. ADMINISTAATIVE OrflCE 28- 'EDERAl APPLICATION
~ IDENTlFIC...TlON
~ 29. ^CORESr. \ >>0. I'EDERAl OF:ANT
~ IOENTlfIC...TION
~ 31. ACTION T^KEN 3L ruND~ )'- -.... "'1 J.4. r_r ...-I-A <14.
I 0 I. AWAAOEO rfDE"-'L STARTING
I. S .00 )), ACTION D"'TE ~ 19 D...TE 19
.. 0 ~. J:EJtCnll ~TM:T fOR ,",OOITlOItAL tH'OtlIo4A.
Q \. 1J'M. tCAHf .00 . - 36- Y...- .......... ....
J lON (H..... o-J .....~ "......D.r> f.NDING
0 .. J\ET\HlI'ICO P'OIl c. nATE .00 DATE 19
A1lE.1i[)t.lt:HT c. LOMe I .00 37. REM"'RKS "'DDED
~ o c. OEfl!RRE'll I
5 I.Olm" .00
~ o I. WITMORAwtl l. TOT AI. I s .00 o V.I ONo
3S. I: 111I b~lnl ~. atl'her... ...,. OOft\........b PMetwd fro", d..rinrhou.... ...,.. .....,. \. '(CERA!. ...eEHcr ....." CfFlCIAl.
fEDERAL AGENCV ..d.,,,:. If """I:f' I'UpOoftM la 0.. ''''Ide( ,.,............. .f ra.rt 1.- 06.1:6 Clrculw A,.-;lIi. <<Neu"" ....d a..t.r",^(nw AoO.)
lit ka ~a eo( .. ~ _"_.
"'-95 ...cnON
__. ...... ....-. ............... ,..._ rol""Y , ,,1'"1. """l
"
I
.1
Office of Management and Budget Circular A-110 (7/30/76)
A-110:17
SECTION IV-REMAAKS (Ple~e re/erenu tM Pf"fiP"r ium numbtr IrO'lTl SutWru I. II MIll, il appli=-bu)
. '\
STANDARD FORM ~2~ PAGE 2 (10-75)
1"
.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).
^PPUCNH PROCEDIJIlES FOR SECTION
^pplicant will complete all items in Section I. If an Item Is oat applicable, write "NA". If additional space is needed, insert
IIn asterisk ...", IInd use the remarks section on the bec;j( of the form. /In explenation follows lor each item:
Item
1. MaMt appropriate box. Pre.applk:lltlQn 1100 appllca.
tion guidance is in FMC 74-7 IInd Federal ageney
program instructiom. Notlfic>ltion of intllnt RUid.
once is in Circular A-95 procedures from clear.
inghouse. Applicant will not use "Report of Federal
Action" bol(o
2a. Applicant's own control num~, If desired.
2b. Date SectIon I ts prepared.
3a. Numbel" llsGlgned by Stzrte clearinghouse, or If dele-
gated by Sblte, by areawide clearinghouse. All re-
QUests to Federal agenci~ must cont:Din this identi.
fier if the Pl"ORram is covered by Circular 1t-95 and
required by apjJlicable. State/areawide Clearing-
house proce<lures. If in doubt, consult your clear.
inghouse.
3b. Dele applicant notlfled of clC(lringhouse Id:mtificr.
4&-4h. Leglll name of IIppllCl!nt/reclplent, narrnt of primary
organizational unit ...'hich will undomM the asslst.
llnce activity, comp::-te eddress of applicant, and
name and telephone number of person who can pr0-
vide further information about this request.
5. Employer identification number of applicant as as.
$Igned by Internal RevonLHl ServIce.
611. Use Catnlog of Federal Domestic Assistance num.
ber assigned to progrnm under which aS3isomce is
requested. If more than one program (e.s., }oint.
funding) write "multiple" and explain in ntmaoo.
If unknown, cite Public Law 01" U.S. CoOe.
6b. Program tltXl from Fed ora I Cl:taklg. Abbreviate If
necessary.
7. Brief title and appropriate d~ription of project..
For notificz:tion of intent. continue in remarks sec-
tion if necessary to convey proper description.
8. M~ly s.elf-cl(planlltory, "City" includcstown, town.
ship or other municiplllity.
9. Check the type(s) of assistance requested. The
definitions of the terms are:
A. &sic Gront. An original request for FeOeral
funds. This would not include any contribution
provided under II supplemental grant.
B. Supplemental Grant. ^ request to increase II
besic grant in certain cases where the eligible
applicant cannot supply the reQuired matching
share of the basic Federal program (c.g., l>T'lInts
ewarded by the Applllachian Regional Commis.
sion to provide the applicant a matching share).
C. Loan. Self explanotory.
'tom
10.
11.
12.
D. Insurance. Setf explanatory.
E. Other. Explein on r-effi&rks page.
Governmental' unit when! ltignificant end meaning.
ful imp&ct could be observed. li&t only largest unit
or units affected. such as State, county, or city. If
ent:illl unit affected, list It nrther than subunits.
Estimated numbel'" of persons directly benefiting
from project.
Use appropriate code letter. Definitions are:
A. New. ^ submittal for the first time for a n8'W
protect.
13.
B. Reoewal. /In extension for an IIddltional fundlng/
budget period for a project having no projected
completion date, but for which Fedoral support
must be reoewe<1 eech yellr.
C. Revision. A modification to Protect nature or
scope which mil')' result in funding chllnge (in.
erease or declllase).
D. Continuation. /In extension for lln eddltlonlll
fundill(t/budeut period for a project the agency
initially agreed to fund for II dtlfinite number of
r-rs.
E. 1wgmcnbrtion. A reQuirement for additional
funds for II project previously lIWt1rded funds in
the seme funding/budg1rt period. Project na.ture
end scope unchanged.
1I.:nount requested or to be coritributed during ,the
first funding/bud~ period by each b>ntribif.br,
Value of in.kind contributions will be Included. If
the action is e change in dollar amount of an exist.
ing grant (a revision or augmentation), indicate
only the amount of the change. For decreases en.
close the amount in parentheses. If both basic end
5Upplerriental emounts are included, breakout in
remarks. For multiple proernm funding, use totals
and show progTllm breukouts in reffiarics. Item defi.
nitions: 13a. amount requested;from Federal Gov.
ernment; 13b. amount IIpplicant will contribute;
13c. amount from State, if applicant is not a State;
13d, amount from local government. if applicant is
not a local government; 13e, amount from any other
sources, explain in remarks.
Seff explanatory.
The district(s) where most of lIc;:tual worll will be
accomplished. If city.wide or State-wide, covering
severn I districts. write "city.wKle" or ..State.wide."
Complete only for revisions [Item 12c). or augmen.
tzrtions (item 12e).
14a.
14b.
15.
STI\NDARD FORM 424 PAGE 3 (10-75)
I
.1
Office of Management and Budget Circular A-110 (7/30/76)
A-110:19
Item
16,
17.
18.
Approximate date project ex~cted to be.in (usually
as!>OCiatN:l wilh estimated date of availability of
funding).
Estimate<! numb1lr of months to complete project
atter Fe<!eral funds are available.
Estimated date preapplir.atlon/appllcation will be
aubmitted to Federal agancy If this project requires
clearlnBhou~ reTView. If review not required, this
date would usually be all me aa date in Item 2b.
Item
19.
[xlsting Federal Identification number If this Is not
II new request and directly relates to II previous
Federal action. Otherwise write "NA".
20.
Indicate Federal agency to which thiS request is
addressed. Street address not required. but do use
ZIP.
21.
Check appropriate br.x as to whether Section IV of
fonn contnins rembf1<S and/or additional remarks
are attached.
APPLICANT PROCEDURES FOR SECTION II
Us! c1eoringhousM to which submitted and ahow
In appropriate bloc~ tho status of their responses.
For more then three cloarlnghouses, continue In
remlloo section. All wrttten comment~ aubmltte<!
by or through cleartnghousell must txl attached.
Nome and title of outhorized representative of legal
llpplicant.
Applicants will always complete Items 2311. 23b, and 23c. If clearinj;house revlow Is required, Item 22b must be fully com.
pleted. An explanation follows for each item:
Item
23b.
Self explanatory.
23c.
Self oxplanatory.
Item
22b.
2.38.
Nole:
Applicant completes only Sections I and II. Section
III is completed by F&doral agencies.
FEDERAL AGENCY PROCEDURES FOR SECTION III
ttem
24.
Executive department or In.dependent agency having
program administra.tion responsibility.
Self explanatory.
Primary organizational unit txllow department level
having direct program management ~ponslbillty.
O1'fico directly monitorinB the program.
Us.e to Identify non.award actions where Federal
grznt identifiar in itom 30 Is not applicable or will
nat suffice.
Complete add~ of administering office shown in
!tom 26.
Use to identify awa rd actions where dlnerent from
Federal application identifier In item 28.
Self explanatory. Use remarY.s soction to amplify
where appropriate.
Amount to 00 contributed during the first funding!
budget period by each contributor. Value of in.kind
contributions will be included. I! the action is a
change in dollar amount of an existins grant (a revi.
sion or augmentation), indicate only the amount of
change. For decreases. enclose the amount in pa'
rentheses. I! both basic and supplemental amounts
are included, brear,<:'ut in remaoo. For multip~ pro.
gram funding. use totllls anc show proE;ram break.
outs in remarks. Item de:-Initions: 328. 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
government if applicant is not a local government;
32e, amount from any other sources. explain in
remarks.
Dute i!ctlon was taken on this roqu~t.
Dote funds will become available.
If Ilpplicant-supplied information in Sections I and II needs no updating or adjustment to 11t the final Federal action, the
Federal agency will complete Section III only. An explanatlof\. for ellch Itom follows:
25.
26.
27.
28.
29.
30.
31.
32.
33.
34.
Item
35.
Name and telephone no. of agency person who can
provide more infonnlltion regarding this lls..s.Jstence.
Date otter which funds will no longer be available.
Check appropriato box as to whether Section IV of
form contains Federal remar~ and/or attachment
of additional remarks.
For use with A-95 oction notices only. Name and
telephone of person who can llSsure that appropri.
ate A-95 action has been taken-I! same as person
shown in Item 35, write "same", If not applicable,
write "NA".
36.
37.
38.
Federal Agency Procedures-special considerations
A. Treasury Circular 1082 compliance. Feeeral agency will
assure proper completion of Sections I and III. If 5ectioil I
is ooing completed by Federal agency, all applicable items
must be filled in. Addresses of State Information Recep.
tlon Agencies (SCIRA's) are provided by Treasury Depart.
ment to each agency. This form replllces SF 240, which
will no longer be used.
B. OMS Circular A-95 complillnce. Fe<lerlll agency will es-
sure proper completion of Sections I, II, llnd III. This fonn
is required for notifying all reviewing clearinehouses of
major actions on all programs reviewed under A-95.
Addresses of Stale and areawide clearinghouses arL pro.
vided by OMB to each agency. Substantive differences
between applicant's reql1est and/or clearinghouse recom.
mendations. llnd the project as fInally awarded will ~
explained in A-95 notifications to clezringhouse~.
C. Special note. In most. but not ali S.des. the A-95 Stat€
clearinghouse and the (TC 1082' SCIRA life the same
office. In such cases. tha 1-.-95 Bwud notice to the Stal-e
clearinghouse will fulfill the TC 1082 llward notice reo
Quirement to the State SCIRA. Duplicate notification
should be avoided.
STANDARD FORM 424 PAGE 4 (10-75)
t
Office of Management and Budget Circular A-110 (7/30/76)
. ATTACBM&NT N.--C"'CIJLAR No. A-IIO
PROPERT" MANAGEMENT STANDARDS
1. This attachment prcscrib~s uniform
standards governing manngemcnt of prop-
erly turnlshed by the Federal Governmellt or
whose C05t WAS ehargl'd to a proJl'Ct sup-
ported by a FedeTl\! gra.nt or other Rfreement.
Federal sponsoring agencies shall reqlllre re-
ClplenL~ to. observe these standards under
grants and other agTeements alld shall not
Impose addltlonal requirements unless spe-
clllcall)' required by Federl\1 law. The recipi-
ent may use Its own property manl'gement
standards and procedures provided It observes
the pro,'lslolIs of this attachment. This at-
tachment also npplles to subreclplents as
rc1erred to In pa"'graph 5 DC the basic cir-
cular.
2. The following definitions apply tor toe
purpose ot this attnchment:
a. Real propcrty.--ai-Cnl .property means
lnnd. Including land ImprovemenL6, struc-
tures and appurt.cnlU1ces thereto. but ex-
cluding movablo machlner)' and equipment.
b. Personal property.-PeTSOnal property
of any kind except real property. It may be
tangible-having physical existence. or Intan-
gible-having no physical exIstence, such .....
patents, Inventlons and copyrights.
c. Nonexpendable personal property.-Non-
expendable personal property means tangible
person...! property ha,'lng a useCul life of
more than one year and an acquisition cost
or ~300 or more per unit exempt that recIp-
Ients subject to Cost Accountlng Standards
Board regulatIOns may use the CASB stand-
ard of f.sOO per unit and useful We of two
years. A recipIent may use Its own definition
of nonexpendable persona! property prO\'lded
that the deftnltlon would at least Include aU
tangible personal property n.s defined above.
d. Expend<>ble personal property.-Expend-
able personal property reters to aU tangible
persono.l property other than nonexpendable
property.
e. Excess propcrty.-Excess property meaDS
propert). under the con trol of any Federal
agency that. as determined by the head
thereor. Is no longer required tor Its needs
or the discharge or Its responsibilities.
r. A.cquisition cost of purchased none,x-
pendable per.\onal propcrty.-Acqulsltlon cost
or an Item or purchased none"pendable per-
sonal property means the net Invoice unit
price or the propert)' IncludIng the cost or
modificatIons. attachments, acce~sorles or
auxUlar)' npplU'atus n~essary to make' the
propert)' usable ror the purpose for which It
....as acquired. Other charges such as the cost
Of InstaUatlon, transportation. taxes. duty
or prot.cctlve In-tr.anslt Insurance. shall be
Included.or excluded rrom the unit acquJsl-
tlon cost In &ccordance with the r~lplent.s
regular accounting practices.
g. Exempt property.-Exempt property
means tangible per~onal propert)' acquIred In
whole or In .part with Federal funds. and
title to which t~ "ested In the recipient with-
out further obligation to the Federal Govern-
ment except n.s provided In subparagraph 6a
below, Such unconditional vesting of tiLle
wUl be 'p\lrsuant to any Federul lecls)atlon
that pro"Ides the Federal sponsorln!; agency
with n.dequn.te authorlt)'.
3. Real properry.-Each Federal spor.sorlng
o.gency shall prescribe requirements for re-
Cipients concerning the use and dlsp051tlon
of real propertyacqulretl partl)' or wholly
unaer bran ts or other agreemen ts. Un)e5-<
otherwL<e pro\'lded by statut.c. such re'lulre-
nH'nts. as A n11ninHlIn, shall ront.nln the
follo""lnl; :
a. Title to real propert,. shall vest In the
recipient subject to the condition that the
recipient shall use the renl property 10r the
authortzed purpose of the project..ns long as
It Is needed.
b. The recipient shall obtaIn approval by
the l"ederaJ spon,;orlng &j:ellcy for the u"" of
real property In other projects when the re-
cipient determines that the property Is no
longer needed lor the purpose 01 the original
project. Use In other projects shl\1I be limited
to th,,,,e under other lederoJly sponsored proJ-
ects (I.e.. gr8.nL~ or other ar,reements) or pro-
grams that have purposes eonslst.cnt with
tho"" author17.cd tor support by the Jo'c<!eraJ
sponsorlnc Rf'ency.
c. When the real property Is no 10nJ:er
needed as provIded In nand h "bove. the
recipient shall request dlsposlLlon Instruc-
tions trom the Federnl sponsorlnr, ar,ency or
Its tueceswr Federal sponsorlnr, ",:enr.)'. The
I'ederal sponsorln!; a!;ellcy shall observe the
following rules In the disposItion Instrue.
tlons:
(I) The recipient may be permitted to re-
lain title &.It.cr It compensates the Federal
Government In an "mount eomput.cd by ap-
plying the Federal percentar,e or plU'tlClpa-
Lion In the cost oC the orlrrln8.1 project to the
lair m...rket value DC the property.
(2) The recipient may be directed to sell
the property under guidelines provided by
the Federal sponsoring acency and pay the
Fe:!er"l Government an amount computed
by applying the Federal pereentnge 01 par-
tlclpaLlon In the cost oC the orl(:1nal project
to the proceeds from sale (aft.cr deducting
actual and reasonable scl1lng and flx-up eX-
penses, It any, trom the sn.les proceeds).
When the recipient Is autharl7.ed or required
to sell the property, proper Mles procedures
shall be estahllshed that provide for competl-
tlon to the ext.cnt practlco.ble and result In
the highest posslhle return.
(3) The recIpient may be dlreet.cd to trans-
fer title to the property to the Federal Gov-
ernment provIded that In such cn.scs the
recipient shaH he entitled to compensation
c:>mput.cd by applying the reclplent.s per-
centage or participation In t.he cost or the
procram or project to the current fair market
value of the property.
4. Fed.eraly-owned nonezpendable per.on.al
propcrty.-Tltle to federally-owned property
remains vested In the Fe:!eral Government.
Recipients sha.H submit annually an Inven-
tory listing or tederally-owned property In
their custody to the Federal sponsorlnc
agency. Upon eompletlon of t.be ~.,.,ment
or when the property Is no longer needed.
the recipient shall report the property to
the FederaI' sponsoring acency for rurther
agency utlH7.a.tlon.
If the Federal sponsorIng agency hn.s no
lurther need tor the property. It shall be
declare:! excess and report.cd to the General
Services ^c1mlnlstrtlon. ^pproprlat.c disposi-
tion Instructlons wlll be Issued to the re-
cIpient afl.er completion of the Federal
"cency review.
5. Exempt propcrty.-When statutory au-
thority eXIsts, (e.g.. P.L. 85-934. 42 U.s.C.
1892) title to nonexpendable person 1\1 prop-
crt}. acquire:! with project funds. shall be
veste::! In the recipient upon acquisition un-
lcss It Is determined that to do so Is not In
fllrtherance or the objectives of the Fedcral
sponwrlng accnc}'. When title Is vcst.c:! In
the recipient. the recipient shall have no
other obHg...tlon or accountahlllty to the
Federa.l Government lor Its use or disposi-
tion except n.~ provided In 6a below.
6. Other nonexpendable propcrty.-When
other nonexpendable \.anr,lble personal prop-
crt)' Is acquired b)' a reclplcnt wltb project
fllnds. title shall not be takcn by the Fe:!-
("r.;'\1 CrOt"C'rnnlcn: b\1t ~h,,11 t"C'st In th!' rt"-
clplen~ "u hject 1.0 the Collowln!: conditIons:
a. Right to lran$/er lit/C.-For Items or
nonexpendablc personal property havlnr: 1\
unit acquisltlon cost of :-1.000 or more. the
Federal sponsoring ngenc)' m,,)' reserve the
right to transCer the title \.0 the Fedcral
J
A-110:20
Government or to a third party named by
the Jo'edcr,,1 Government when such third
pl\rty Is otherWise eligible under exlstmg
statllteS. Such reservation shall be sllbject to
the followlnr, standards:
(I) The propert)' sl1o.ll be approprlat.ely
l<lelltlne::! In the grant or other agreement
or otherwise made known to the recipient
In wrlUn~.
(2) The Jo'cderoJ I'poru;orlng ar:cncy shall
I...<ue dlsposltlon Instructions within 120 cal-
cudl\T dnys afLer the end of the Federal SlIp-
port oC the project tor which It was acqlllred.
If the Federal sponwrlng "gency Calls to Issue
dlspor.ltlon Instruetlons vo'ithln the 120 cnl-
emlar day period, the recipient shall apply
the sLnndards oC sllbpurar,raphs 6b und fic
"s approprlat.c.
. 13) When the Federal sponsorinG ar,ency
exercises Its rIght to take title. the personal
property 51...11 be subject to the provisions
lur tederally-owned nonexpendable property
dll'>Cus.o;ed In pl\r8.gTaph 4. above.
(4) When title Is translerred eIther to the
Fc<Ieral Oovenunent or to a third pl\rty.the
provision., 01 J;ubparB.gTBph 6c(2)(b) should
I>e followed.
b. U.e of other tangible nonexpendable
property lor which the recipicnt h<L> t/tle.
(1) The recipIent shall use the propert)'
In the project or progTRm for whlcb It wns
acquired as'lonc as needed. whether or not
the project or program continues to be sup-
ported by Federal funds. "''hen no longer
needed ror the onglnal pro}cct or program,
the recipIent shaU use tbe property In con-
nection wlt.h Its other tederaHy sponsored
activities. In t.he 10Howlng order or prlorlt)':
(a) Activities, In the following order of
priori ty:
(h) Aetlvltles sponsored by other Federal
agencies.
(2) .<;harro "-'Ie.-Durlng the time that
nonexempt nonexpendable perJ;Onal proper-
t)' Is held for use on the project or progTam
ror which It was acquired. the recipient
sball make It available for use on other proJ-
ects or progrnms It such other use will not
Int.crterc with the work on the project or
prOgTatn lor ....hlch t.he property was orIgi-
nally ...,qulred. Flrnt prelerenee tor such
other use shn.ll be given to other projects or
prop-ams sponsored hy .t.he Feder,,1 ngenc)'
that financed the property: second prefer-
ence shall be given to projects or pro[:Tams
,;ponsored by other Federal agencies. l! the
property Is owned by the Pederal Govern-
ment, use on other activities not sponsored
by t.he Federal Government shall be pcr-
mlsslble If authorized by the Fcdera] agency.
User charges should be co~ldered 11 appro-
priate.
c. Dupo.rition of other nonexpend!'blc
property.-When t.he recipient no longer
needs the property as prOVided In 6b above,
the propcrty may be used lor other actl./I-
ties In accordance wIth t.he follo....lng stand-
nrds:
(I) N01U:xpend<>ble properly wilh a unit
acquisition co.l of less than $l.OOO.-The re-
cipient may use the property tor other activi-
ties w1thout reimbursement to the Federnl
Government or sell the propert}' and re-
tnln the proceeds.
(2) Nonexpcndable personal propcrly with
a unit acquisition CO.l of Sl,OOO or more.-
The recipient mn)' retain the property lor
other uses provided that compensatiOn Is
made to the original Federal sponsoring
agency or Its successor. The nmounl of com-
pensaLlon shall be comp\lt.cd by applyin!;
the percenl.,,!;e of F'<'<lernl p:u-t1c-lp"Uol1 111
the co..o:;t of the orl~lnA.l project. or pro~rr.ln to
thc r.urrent Inir mnrkct vnlue of the property.
] r the recipient has no need lor the property
nnd the propert)' hn.s furthcr \lse "al ue. the
recipient shllll r<><l\lcst dispositIon Instruc-
l'ons from tlJe or1c1 un.) sponsorl ng ngcncy.
I
Office of Management and Budget Circular A-110 (7/30/76)
Tbe l"e<ler1\1 spon.orlng agene)" shall deter-
mine whether the properly can be used to
meet the "gency's requirements. Il no re-
quirement exist.' within that agency, the
av"llablllt)' of the property shall be report-
ed to the General Services Administration
by the Fedeml agenr:y to determine ....hether a
requirement for the property exists In other
Fedeml agencIes. TIle Federal sponsoring
agenc)' shall Issue Instructions to the recIpi-
ent no Inter than 120 days alter the recipi-
ent's requcst and the following procedures
shall govern:
(a) Il "0 Instructed Or If disposition In-
structions are not I"ued within 120 calen-
dar days alter the recipient', request, the
recipient shall sell the propert)' and reim-
burse the Federal sponsorIng "gency nn
amount computed by "ppl)'lng to the sales
proceeds the percentage of !"edcral particI-
patIon In the cost of the original project or
progmm. However, the recipient shall be
permitted to deduct and retain from the !"ed-
eral shl\Te 1100 or ten percent ot the pro-
ceeds, which Her Is greater, for the reCipient's
selling and handling expenses,
(b) If the recIpient Ls In~.tructed to ship
the property elsewhere, the recipient shall
be reimbursed b)' the benefiting Federal
ngency with an "mount which IS computed
by applYing the percentage of the recipient's
partlclp"tion In the cost of the origInal grant
project or program to the current fair market
value of the property. plus nny reasonable
shipping or Inter1m storage costs Incured.
(c) It the recipient Is Instructed to other-
wise dispose ot the property, the recIpIent
shall be reimbursed by the Feder"l sponsor-
Ing agency tor auch costs Incurred In Its
dLsposl tlon.
d. Properly manapemcnt ~landard. for
nonerpendable properly.-The reclplent.s
property m"nagement standards tor nonex-
pendable personal property shall Include the
following procedural requirements:
(1) Property records shall be maIntaIned
a.ccurately and shall Include :
(a) A description of the property.
(b) Manufa.cturer's serIa.l number, model
number. Federa.l stock number. national
stock number. or other Identltlcatlon num-
ber.
(c) Source at the property. Including
gr~nt or other a(;Teement number.
(dl Whether title vests In the recIpIent or
the Federal Gove.rnment.
.(e) Acqul.ltlon dale (or drol-e received. It
the property "'l\.S !urnl.hed by the Federal
Government) and eo.t.
(!) Percentage (rot the end of the budget
)'o~r) of Federal participation In the cost of
the project or progrrom for ,,'hleh the prop-
ort)' ...."'" acquired. (Not Appllc~ble to prop-
erty f.urnlshed by \he Federal Government.)
(gl Loc"tlon, use and condition of the
property ~nd the da~e the Intorm"tlon w~s
,oporto-<!.
(h) Dnlt ncquLcltlon cost.
(l) Ultimate dllposltlon data. Including
date of disposal ~nd sales price or the method
used \0 determine current fair market value
....here I. reclplrnt compensates the Federal
o-ponlOrlng agency for Its sh~re.
(2.) Property owned by the 1'ederAI Gov-
ernment mUAt be marked to Indicate 1'ed-
erAl ownership.
(3) A physical Invontory at propert)' sh~ll
be tn.ken "nd the results reconciled ....Ith the
property recorct.s At leo.st once ever.- two
yen.rs. Anydlnerene.. between quantities de-
termined by the physIcal Inopoctlon :>.nd
thqse shown In the accounlln!; records shall
be InvestIgated to determIne the cause. of
the dlnerence. The reclplcnt sh~ll. In connec-
tlon with the Inventory, verlf)' the existence.
current utlllzatlon. and continued need for
tho pro pert)' .
(4) A control Sl..tem shroll be In e:rect to
Ineure adequn.le I"foguards to pre..n~ Ie,..,;.
damage. or theft 01 the propert}'. Any 10....
d"m"ge, or theft ot non expendable property
sh"lI be Invesllgated and fully documented;
If the property wa. owned by the Tederal
Government, the rPrlplent shall promptly no-
tify the Federal sp,'nsorlng af:ency.
(5) Adequ"tel)' m"lntenance procedure5
shnll be Implemented to keep the property
In good condition.
(6) Where the rt'clplent Is "uthorlzed or
required to sell the propert)'. proper ."Ies
procedures shall be established ....hlch would
provide tor competItion to the extent pmell,
cable nnd rcsult In tho hIghest possIble re-
turn.
7. Lxpendable penonn' properly.-Tltie to
expendable personal property shall vest In
the recIpient upon acqUisition. If there .Is a
resldun.llnventory 01 such propert)' exceeding
U,OOO In totnl aggregate f"lr market v"lue.
upon termination or completion of the grant
or other agreement. "nd the property Is not
needed lor an)' other federAlly sponsored
project or progr"m. the recipient shn.lI retain
the propert)' lor u..e on nontederslly .pon-
sored a.ctlvltles. or sell It. hut must In eltlTH
. ense, compensnte the Federal Go"ermnont
lor 11.3 share. The amount of compensation
sh"ll be computed In the same manner ""
nonexpend"ble personal propert)'.
8, Intanlliblc property.
a. Invention. and palent..-If any progrn.m
produces patentable Item.,. p"tent rlght..,
processes. or Inventlons. In the course 01
work sponsored by the Federal Government,
such tact shnll be promptly and lully report-
ed to the !"ederal sponsorIng agency. Unless
there Is a prior n.greernent bet"'een the re-
cIpient and the Feder,,1 sponsoring agency
on disposItion of such Items. the reder,,1
sponsorIng ngency sha.ll determine whether
protection on the Invention or discovery shn.ll
be sought. The Federal sponsoring "geney
wll1 also determine how the rights In the In-
vention or discovery-IncludIng right/! under
any patent L'lSUed thereon--<5hall be "lIocated
nnd a.-dmlnlstered In order to protect the pub-
llc loterest cooslstent wIth "Government
Pa.tent 1'ollcy" (President's Memora.ndum
lor Heads 01 Executlye Departments and
Ageocles. August 23. 1971. and statement 01
Government Patent Pollcy as prlntec;1 In 36
P.R. 16889).
b. Copyripht..-Except as other....ls. pro-
vided In the terms and conClltlons 01 tbe
agr..,meot. the author or the recipIent organ-
Izn.tlOn 15 tree to copyrl[':ht any books. pub-
lications, or other cop)''-I!;htable mat4rlLls
developed In the course alar under.. red-
eral agreement, but \he ]"eder~l spon&Orlng
..gency shall reserve a royalty-Iret, noneX-
clusive a.nd Irrevocn.ble right \0 reproduce,
publish, or othervdse use. and to authorl..e
othns to use, the work for Government pur-
poses,
A-rrACHMS:I<T O.--CncULAI\ No, I.-lID
~"OCU".NE""'T 8TANDARDS
1. Thl' r,t~achment proYldes o\andards for
u.e by reclplents In eotabllohlnt' procedureo
tor the procurement of .upplles, eqUipment.
constructIon and other .enlC"s with Federal
fUllds. The.. stand..rd~ &Te rurnlshod to en-
sure th,.t such m8.terla.l, and service". Are ob-
taIned In an effectlv. manner rond In eom-
plln.nce with the provisions at appllcn.ble red-
ern.1 I a...' ~nd executIve orders. No addItional
procuroment standa.rds or requlremeo\.l shall
be Imposed by the roderal sponsoring aBen-
cl~s upon recipients unless .peclnc..lly re-
qulrod by Teders! stntute Or executive orders.
:2. The standards contained In this "t\.o.cl1-
mont do not relieve the recipient ot the con-
tr..ctun.1 responslbllltleo &rIsIng under Its
contrac~. The reCipient Is the rupon~ble "u-
thorlty, without recour.e to the l"ederal spon.
sorlnr. "gency regArding the settlement rond
In.UstA-ctlon of ..II c.ontractu"l and n.dmln~-
J
A-110:21
lratlve IscuK !\Tlslng out of procuremen1.3
entered Into. In support ot " grant or other
"~reement. This Inclllde. dl'pule., claim...
pTOlf:~t' of l\wnrd. Il()'\.r~ .Yf\.)uatlon or othf"r
mntten of a contractu,,1 !1l\turt. ~iRttf?n con-
cernln. violation of law Me to be reterred to
such Joe"I, StaLe or 1'ederal Buthorlty M may
han proper turledktlon.
3. RecIpIents mo.y u... theIr own procure-
ment policies and procedur.... 1l0wever, all ro-
clplents shall "dhere to tho standl\Tds set
forth In paraf:r"phs 3 "nd 4.
". The recipient shall mnlntaln a code or
standl\Td.. of conduct th"t .h,,1I F:oYern the
pertormAnce of l\a officero. employ....s or
ar.ent. enc"ged In the "warding "od admin-
Istration of eonlr"cts uolng P"cdcral fund..
No employee. omcer or Agent shnll partlclpale
In the selection. ......Ard or n.dmlnlstratlon of
" contr"et In ....hlch reder,,) funds o.re used.
where. to hlo knowledge. he or his Immedl"te
lamll)'. partners. or or!;n.nlzatlon In w.hlch he
or his Immedln.te In.mlly or partner hM a
nnantln.l Intere.t or ,,'Ith ",horn h. Is neF:o-
tlatlng or hn.a "ny arrangement concerning
pro' pectin employment. Tho rcelplcnts' ot-
nCeT>. employees or ngents sh..1l neither solle-'
It nor aoc"pt gratultl"'. t",'ors or "nythlng
or monetary vf\)ue from contTnctors or poten-
tial contnctors. .!ouch standards shall provide
tor dlsclpllnnry actions to be I\pplled for vlo-
i"tlono of such st"ndards by the reclplcnl.3'
officers. employees or Rf:ents.
b. All procurement kansactloTl.'l shl\.ll be
conducted In a mann..,. 100 prOVide, to the
-maximum extent practlc"l. open Ilnd tree
comp.tltion, TIle recipient should be alert
to organlzn.t1onn.1 conmcts of Int.erest or non-
oomp..tl tlY e prl\Ctlces among oon trnetoro
that may restrlct en- eUmJn"te competitIon
or otherwl.~ restrAlI\ lrl\.de. In ord<:r to en-
sure obJe<:tlYe contrlLCtor perlonn"nce and
eliminate> unflUr competltlv~ advantl\.ge, con-
tr(\.Coors that develop CJI( drn.!t spe-clfic"t.lons.
requl~menl.3. ..tnt.emenbs of worK., Invlta-
t10rus Jor bids a.nd/Of' requC61.s for ~Is
should be excluded lrom com.petlng tor 5uc-b
procuremen~. Awnrda tlhe.lJ be made to the
bldder/otrercrr ....hose Dld/olTe<' U r""90nBolve
to tn. ao 11 c I ta. tilon s.nd k IIl.Q6 t ad VI> n tag COU8
to the reelp\ent, JX'lu a.nd other tacto"' 000-
slde~. Sollcltatlo"e s.hell clearly set torth
all requJrements that ~e bldder/o!!'eror must
tuUm In ord..,. for hI<! btd/o!!'er to be e......lu-
~ted by th. reclplen~. Any ..nd all bld.3/offers
mar be reJeo~ wben 1\ Is In tbe redp1ent's
In~r..t to 00 10.
c. All reclplen~ ...'lall e.sbabllsh pTOCUH.
ment proe<oouTes t.b&t provldf for. at a m.In-
Imum. Uu tollowlng prooeOurn.!Tequlrem.ents.
(l) Proposed pr~ent a.ctlons shall
lollow a proce-du!'O to .......UTe tho ~vO'ld"nc.
of purcllMlng unn~y or ck1pllCl>tlve
ltoms. W"..re ..pproprleH, ~n anal)"f'1o shall
be l'l'>&Oe of lel\bC ~nd pureha...... n.lt.e1'n6-tJ"e.s
00 determIne whloCh ..."OuJd be the meet
oconomlCAI. prAcllOa.l proc-ur..rnent.
(2) f,ollclt>e.\lolU foc ~ood<l a.nd servIces
,hall be 'btued upon I. cles.r and accurat-e
de..erlptlOn of bhe teohnic,,1 requJnm.enl.6
fer \.,'le m..tA-rlal. prod""'t or ,..,.,,-Iu to be
procured. Such .. d.,..,~lpt.lon sho..ll not. In
competitive proour.ment.. con\&ln lee.tur...
which unduly r...tr1ct compotltlon. "Brand
n..me or .qUA1" descrlp\lOn.s mny be und
a.e .. me...n& to doenn. 'Lhe pertorme.noc or
ot.her a.a.1t..nt '_QulreTJ"'cnb o~ a procuremt'nt,
..nd ",hen eo ulOOd the spoclnC le"ture. 0: the
nl\mtod Dr.nd ...,.l\loCh must be met by blddors!
of'fe,-ors sht..ll be c1ee.rlr ~ec.lne<l.
(3\ Posltl~e eITorts "hI\JI be mMle by the
recipient.' to utilize .mn.ll buslne"" I\l'd mJ-
norttv-ownrd. buslne1toS ~ources or. ~upDlIel
n.nd ~'TYlr.e.. Such erro~ ohould ..110.... the....
wurc.. the maximum f"....lbl. opportunity
to compel< for contracta utll\Z;lng- }"oderal
tunne.
(4) The t)"Pe 0: procurln, 11Ut....'m.ntB
uoce. ..... I\xcd prlc' oontT'I\-Ct:\. ooet rolIn-
, ,
~
Office of Management and Budget Circular A-110 (7/30/76)
burMble oontract..s, purchl\..<.e orders. Incen-
tive contrnc\..<. shall be deterrnlned by t.he
recIpient but must be n.pproprlate for the
partloular procuroment 11Ild for promntlng
the best Int.erost of tht pro[!mm Involved.
111e "cost_plu.3_n_percenlage-of.C05t" meWl-
od of contTf>Gtlng 5ohl\lI not be used.
(5) Contr!\C\..< shnl be nuule only with re-
sponsible contrncLOrs who p<x~ the po.
tentlo/lfu ability to perform succc:;.o;fully
under the t.ern1-' end condItions of 1\ pro.
posed procurement. COnsldemtlon 50hnJl be
given to such mAlt.er6 as cont.rn.ctor IntegTlty.
reoord of past p<lrfOrnlll.Ilee, finnnclnJ and
t.cchnlonl resourccs or o.cccs.;jblllty to oW,er
ncceSSlLI"Y rCSO\lj("..cs.
(G) All proposed sole source contrac\.., or
whNC only one bid or propo:;n.] Is r('(:el,'ed
In whloh the I\f:gregnte excpendlture Is ex-
pected V> exceed r-5.000 shnll be subjecl to
prior approvnl nt the dlscretl<ln of the Fed-
ernJ sponsorlnr.l\f:ency.
(7) Same form of price .01' cool Il-nnlnls
should be mnde In connection with e~ery
procurement !\CUOIl. PrIce I\nnlysls mal' be
n-ccompll..,hcd In vnrlou5 wnp. IncludIng lhe
comparloon of price quol.l\LJons submitted.
fTlO\rkot prices Il-nd similar IndiCia, together
with d1soounts. CoGt n./lll.lysls Is the review
I\nd evalu"tlon of each eiement 01 eo..-t to
delerm.lne ronsonn.bJencss. alloca.blllt\. and
allow...bUlty. .
(8) Procurement records and flies for pur-
chnscs In elC'CeSS 01 '10.000 &hall Include the
follo\\'llns:
(a) Bl\.5ls lor contre.ctor selection:
(b) Justification for lack of competition
when compeLJtlve bids or otTen; a.re not
OC\.D.loed.;
(c) Ba.sls for AWard. coot or price.
(9) A system for contract a.dmJnlstmtlon
aho.ll be mn.lntlL.!ned to ensure contractor
conlormance with terms, conditions and
speeltlca tlons or the coo trn.ct, and to ensure
a.dequ",~ and tlm",ly tollowup ot all pur.
chases.
~. TIle redplent shall lnclude. In addItion
to provisions to deftne a sound and complete
. ab'eemenl. the following pro\1.slons In all
cootracts. These provIsIons shall also be ap:
plied to sub=ntr..cts.
a. ContM\..Ct..s In excess 01 ~IO,OOO shaJj con-
tain contrActual pro\'1slons or cond~tJon.:i
that "'11I .j)o.... lor I\.C!JnJnlstrntlve. contrn<:-
1;\11\1 or leg...l romedJes In lnst.n.ncC'S In "l1lch
contT'8.Ctors vlol...te or brel\ch contract tcnn.s.
and provide for such remedial actIons as
nul' be approprll1te.
b. All contm-ct..s In exccs.; Of t.IO.OOO shl\ll
conbnln sult.o.blc provisions tor te:-m.lnr.llon
by the rectplent IncludIng the mnnner b,'
v..hlch tcrmJnat.lon ....11I be eITecled and the
b.IIsLs tor settlement. In a.ddltlon. su..'> con-
tT'8.Ct..s shall descrIbe condItions under ,,'hlch
the contract mAr be t.errnlnnted lor dcl^ault
a3 weU 8.S (,'()JHllllol15 where the contrll..ct nlay
b-t: Lcrrnlnntcd bN':1\.\1~C of clrcuJ1\..c;.t..u.ncN" l>c-
rond the c.ontrol of W,e cont.r...clOr.
c. In ail ('ont,rf\cts for con.c;,trucllon or fft.-
GUily lrnpro\'enlcnt awarded tor .nore thnn
~1O{J,OOU. reclplcnu; sh"ll ob6crve t.he bond-
Ing requirements proV\ded In AtU,c.1unent D
to this circular.
d. All contrl\Ct.~ awarded br reclplen\..o; nnd
their oonlr/l.ct.or.' or suup.71\nte(':5 imvln!: a
value 01 more than ~IO,OOO. shn.lI conl..ln a
provision requlrulg oompll.nncc \\1t.h Execu-
tive Order 11246. entitled "Equal Employ-
ment Opporlunlty." I\S amended br Execullve
Order] 1375, I\nd as supplemented In Depl\rt.
If,,,nt 01 Labor regnlatlon:; (41 CF'R. Pnrt 60).
e. All contmcts I\nd suh(;mn\..' In excess of
~,2.000 for constructioll or repnlr ownrdcd h}'
reclpien\..' and snbreclplen\.._ shnll Include n
provision for compliance with the Copeland
"Antl.Klck Dack" Act (18 U.:;.C. 874) 11-'
supplemented In Department ot Lauor
re~ulntlons (29 CFR, Part 3). This Act pro-
,'Ides thl\t each contmctor or subgrl\lItee
shl\ll be prohibited from Inducing. by nny
means. an~' person employed In the cOlIstrue-
tlon. completion. or repair 01 public worl:.. to
give up an)' part of the compensation to
which he Is other"..lse entitled. The recipient
shall report I.JI suspected or reported viola-
tions to the Federal sponsorIng agency.
l. When required by the Federal pror,rl\m
legislation, all construction contracts
a...'arded b)' the reclplent..s and subreclplents
01 more than f2.000 shall Include a provision
for compliance ....Ith the Davls-B"con Act (40
U .S.C. 276a to "-7) and flS supplemen'l-cd by
nepartment 01 Labor regulations (28 CFR,
PI\Tt 5). Under this Act contractors shall be
required to pay ....ages to laborers and me-
chanIcs at a rate not less than the minimum
,,'ages specllled In a wage determInation m"de
by ,the Secretary of Labor. In addltlon. con.
tractors shall be reqUIred to pay wages not
less than once" week., The recipient shall
place a copy of the current prevl\l1lng wll-ge
determination Issued by the Department 01
Lnbor In e"ch solicitation and the award
or a contract shall be condl.tloned upon the
acceptnnce ot the ....age determInation. The
recIpient shllll report all suspected or re-
ported violatIons to the Federal sponsorlog
agency.
g. Where Ilppllcable. all contracts aWllrded
by recipients In txcess or f,2.000 tor construc.
tlon con1.ract...~ and 1n exceES or t.:2.500 :or
other contracts that In"olve the employment
of mechanics or I"borers, shall Include a pro-
vISIon for compllsnce ,,'Ith sections 103 and
107 or the Contrnct Work Hours and Safet"
Standards Act (~O U.S.C. 327-330) as sup'-
plemented by Departmen.t or Labor regula-
.I
A-110:22
tlons (29 CFR. Part 5), Under section 103
of the Act, ~nch coutrnctor sh:l.ll be rt-
ql1'r~c1 to conlpulc the wn~cs of P\'cry J11(,-
chonle Rnd Inburer on the ba~15 of n standnrd
work dny of P. h()\I~ nnd Ii 5t.l\nc1llrd work
week of 40 hours. \I-.'ork In CXCC'.5S of the
standnrd \\'or~:dny or work\l,'C'C'k I:; pC'rnlis.slblc
provided LhA.:" the worher Is cOlnpcll~nlcd fit n
rnte of not less thnn I y, limes lhe basic
rat!' of PRY for 1\11 hours wor~~l'd in r.xccs~
or A hours in nny cn)cnd,H doy or 40 hO\1T5
III the work "..eel:.. Section 107 of the Act. IS
nPl'lJcaule to construction work IIl1d provides
thl\t no lnborer or mechanic shl\l] be required
to work In surroundinGS or tinder worklllg
condlLlons which fire unsl\lllt.nry, lH\7,nrdo\1s
or <1l\1l(~r.r<}\15 \.0 his hcnlth :\Ild fil\f<"ty I\.'" de.
'crlll'IIM under cOl1str\lr:Uon sHfety Illld
her\lth 5tnJldards prol1'l\llgntC'd uy the Sccrc-
tnry of LnboL These rC'l"irclllC'l1t.:i do ~10t
Rpply to tht! rurchn.scs of suppllC!s or nlntc-
rials or nrt..lr:lcs ordinnrlly nvrdlnblc Oil the
ope II rllnrket. or contrrLct...c; for tnLnt'portnl1on
or tral1snll~c:;lo1\ of I n1.rll 19-cl1ce.
h. C<Jnlrf\ct.' or nl&eement.s, llle prlllelpl\!
purr""e or ,,"'Hcll \., l~ crcate. devclop or Im-
prove products. procc~;scs or nlct.l1o(1!->; or for
exploml1on lnt~ lInlds thl\t dlreclly concern
public health. snfet)' or wellnre: or contmcts
In tlle neld of science or technology In which
there hns been IItUe '.'I:nlncant experience
out.slde 01 work funded b)' Federnl nssl~t-
I\nce, shnll contain a nollce to the eflect ,thl\l
mntters regnrdlng rlght.< to inventIons Ilnd
muterll\ls genemted under the contmct or
ngreement arc subject to the regulatlon~ 15'
sued by the Fedeml sponsorll.[:: agenc)' and
the recipient. The contrn-ctor shnll be ad.
\'Ir-ed ns to the source of Ilddltlonal Informa,
tlon rcgurd: ng these mn tters.
I. All negotiated contrnots (except those
01 f,10,000 or less) l\Vo'nrded b)' recipIent.'
shnll Include a provision to the e:Tecl. thnt
the recIpient. the Froeml spon.<or\ng nrency,
the Comptroller General 01 the United States,
or nny 01 rthelr d\1lr authorl7.ed representa-
tives, shall hf\ve access to any books, doCtI-
ments, pnpers and records of the contrnctor
which are dIrectly pertinent. to a specIfic 1'1'0-
gmm lor the purpose of ml\klng audlt..s,
examlnl\tlons, excerpt.' and ITl\nscrlpllons.
J. Contract..s f\nd subA'mnts of amount..s In
excess 01 ~IOO.OOO shall contain a provlslon
that requires the recipient t~ agree to com.
ply ....llh all appllcf\ble st.o.ndards, orders or
regulntlons Issued j:'ursuant to the Clenr AIr
Act of 1870 (42 V.S.C. 1857 et sec;.) and the
Federa! W"l.cr Poll\1t\on Contr...! Act (33
U.S.C. 1251 et seq.) ns amended. Violations
shl\lI be reported to the Federal sP9nsorlng
I\genc, and the Regional ~mce of the ED.
\'Ironment"l ProtectIon Agency. .
1m Doc.76-21904 FIled 7-29-76:8:45 am]
I
APPENDIX H
OMB
Circular A-122
J
..
I
Office of Management and Budget Circular A-122 (6/27/80)
crACE OF MAWAGEMENT AND
BUDGET
arcolar A-122, "Cost Principles for
Nonprofit Organizations"
AGENCY: Office of Management and
Budget.
ACTION: Final Policy.
June Z7.1!IUO
To The Heads of Execulive
Departments and Establishments
Subj9cl: Cost principles for nonprofit
organiza tions: .
1. Purpose. This Circular estaLIi:;hes
principl0s for determining costs of
grants. contrii::ts lind other Hgnlements
with nonprofit organiza tions. It ooes nol
apply to colleges m:d universities which
are covered by Circular A-Zr. Stnte,
local. aIld f(rdernlly :,ccogn:zed Indian
tribal governments which are covered
by Circular 74-4; 01' hos?itnls. The
principles are designed to proviae that
the Federal Government Leal' its fair
share of costs e:xcenl where restri::ted or
prohibited by law, The principles do not
attempt to prescribe"the extent of cost
sharir.g or matching on' grants, contracts,
or othe:, aBreemel~ts. However, such cost
sharing or ma tching shall not be
accomplished through Drbilrary
limitations on individual cost eleinents
by Fede.al agenciez, Provision fur profit
or other increment above cost is outside
the scope of this Circular.
2. St:persession. This Circular
supersedes cost principl~s issued by
individual agencies for non'profit
organization.
3. Applicability. a. These principles
shall be used by all .Federal agencies in
determining the .costs of work performed
by nonprofit orgilnizations under grnnts,
cooperative agreements. cost
feimbur::ement contracts. and other
contracts in which costs are used in
p.ic\ng. administration, or se'ttlp.menL
All of these instruments are nercaflcr
referred to as awards. The principles do
not apply to awards under which an
organiza tion is not required to account
tu the Government for actual costs
incurred.
L. All cost reimbursement SUU1JW8n]s
(subgrants. subcontracts. etc.) are
subjeclto those Federal cost principles
applicable to the particulor organization
concerned, Thus. if a subaward is to II
nonprofit organization, this Circular
shall apply; if a subaward is to a
commercial organization. the cost
principles applicable to commercial
co~cerns shall apply; if a subaward is to
a college or uni I'ersity. Circulur A-21
shall err]y: if a slluilword if: to il SI;lIe.
loclll,-or federallyreoO~i7..ed Indi!lni
tribal government, Gircuhu- 7~ sbaU
apply.
4. Definitions. a. "Nonprofit
orgonization" means any corporation.
trust. 1I1lsociation, cooperative. or other
organization which (1) is operated
primarily for scfcntific. 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. and/or expand its operations.
For this purpose. the term "nonprofit
organization" excludes (i) colleges and
universities; (ii) hospitals; (iii) State,
locul. and federally recognized Indian
tribal governments; and (iv) those
nonprofit organizations which are .
excl\H.]ed from coverage of this Circular
in accordunce with paragraph 5 below.
b. "['rior approvol" means secu~ing
the awarding agency's pe:rmission in
advance to incur cost for those item~
that are designated DS requiring prior
approval by the Circular. Generally this
permission will be in writing. Where un
item of cost rFquiring prior approval is
spcdiied in the budget of an.award.
approval of the budget constitutes
approval cf t!-lat cost.
5. Exclusion of some nonprofit
organizotions, Some nonprofit
organizalions, because of their size and
nature of operations, can be considered
to be similar to commercial concerns for
purpose of applicabiiity of tost
principles. Such nonprofit organizations
shall operate under Federal cost
principles applicable to commercial
concerns. A listing of these
organiza lions is conta ined.in.
Attachment C. Other organizations may
be added from time to lime.
6. ResponsjbiJjties. Ag<!ncie.a
respons'ible for administering programs
that involve awards to nonprofit
organizations shall implement the
provisions of this Circular. Upon
request. implementing instruction shall
be furnished to the Office of
Management ~.ld Bu~et. Agencies &ball
designate a liaison official to serve as
the agency representative on ma tters
relating to the implementation of this
Circular. The name and title of such
representative shall be furnished to the
Office of Management and Budget
within 30 davs of the date of this
Circular. .
7. Attachments. The principles and
related policy guides are set forUl in UlC
follo\'o>ing Attachments:
Atlachment A---General Principles
Attachment B-Selected lIems of Cost
Atlachmenl C-Nonprofit
Organization.s Not Subject ~ This
Circular
J
A-122:1
8. Requestt; for exceptiOJl6. The OUice
of Management and Budget may griint
exceptions to the requirements u[ this
Circular when permissible undr:r
existing law. However. in the interest of
achieving maximum uniformity.
exceptions will be pennitled only in
highly unusual circumsLances.
9. Effective Date. The provisions of
this Circular are effective immediately.
Implementation shall be phased in by
incorporating U1e provisions into new
awards mode aIleI' the start of the
organization's next fiscal year. For
existi~ awards the new principles may
be applied if an organization and L.>te
cognizant Federal agency agree. Earlier
imI5lementation, or a delay in
implementation of individual pnn-i6ions
iz also permitted by mutual agreement
between ;morganization and the
cognizant Federal agency.
10. Inquiries. FurUlCr information
concerning this Circular may be
obtilined by contacting the Financial
Management Branch, Budget Review
Division. Office of Management and
Budget. Washington. D.C. 20503.
telephone (202) 39~773. -
James T. Mclntyre. Jr..
Director.
ICircular No. A-1Z2]
AlIachmenl A
General Principles
Table oj Contents
A. Basic Considerations
1. Composition of total costs
2. Faclors affccting allowability of cosls
3. Reasonable costs
4. Allocable costs
5. Applicable credits
O. Advance understandings
B. Direct Cosls
'\
C. Indirect Costs ..
D. Allocation of Indirect Costs and
Detcrmination of Indirect Cost Ratci
1. Genp.ral
Z. Simplified allocation method
3. Mulliple allocation base method
4. Direct allocation method
5. Spccial indirect cos1 rales
E. Ncgotiation and Approval of Indirect Cost
Ratcs
1. Definitions
2. Negotiations and approval of rates
[Circular No. A-122J
Allachroeot A
Ger;eral Principl!ls
A. Dosie Considerations.
1. Composition of total costs. The tolal cost
of an award is the sum of the allowable
direct and allocable indircct costs less any
applicable credits.
2. Factors o.rfecting CiJ/uH'obility of (;e>sts.
-'
I
Office of Management and Budget Circular A.122 (6/27/80)
To be allowable under an award, costs must
m~t the following general criteria:
B. Be rel'laonable for the performance of the
award Bnd be aUocable thereto under these
principles,
b, Gonform 10 aoy limitations or exclusions
set forth in these principles or in the aWllrd
as to types or amotint of cosLi.lems.
c. Be cODsistcut with policies and
procedures that apply uniformly to bOlh
federally financed and olher activities of the
organization.
d. Dc accorded consistel.t treiltmcnt.
e. Dc determined in accordance wIth
generally accepted accounting principles.
f. Not be included as a cost or used to meet
cost shilring or matching rtiquircments of any
olher federally Iinanced program in either the
currenl or II prior period.
/;. Be ad~qualely documenred.
3. Reasonable costs. A cos! is reasonuble
if. in its nature or amount. i(does not exceed
that which would be Incurted by.a pn:dent
person under the circumstll'nces prevaOing at
the time the decision was made 10 incur the
costs. The question of the reasonableness,of
specific costs musl be scrutinized with
particular care in connectign with
organizations or separate ~ivisi<?os thereof
which receive the preponderance 01 their
support from awards made' by Fede.r<ll
agencies. In determining the reasonableness
of a given cost. consider<ltien shall be given
10:
a. Whether the cost is 01 a Iype generally
recognized as ordinary and necessar)' for the
opera lion of the organization or the
performance of the award.
b. The restrain Is or reC]uirements imposed
by such factors as generally accepted sound
business practices. arms length bargaining.
Federal and State laws and regulations. and
terms and conditions of the award.
c. Whether the indivldli'alsconcerned acted
....ith prudence in the circumstances.
considering their responsibilities to the
organization. its members. employees. and
clients. the public at large. nnd the
Government.
d. Significaril deviations from the
established praclices 01 the orgJnization
which may unjustifiably increase Ihe award
cosls.
4. Allocable cas Is.
a. A cost is allocable to a particular cost
objective. su~h as a grant. project. service, or
other aClivity. in accordance with the relative
benefits received. A cost is allocable to a
Government award if it is trealed
consistently with other costs incurred for the
same purpose in like circumstances and if i.t:
(1) Is incurred spccifically for the award,
(2) Benefits both the award and other work
and can be dis:ributed in reasonable
proporlion 10 the benefits received.
(3) Is necessary to the overall opere lion of
the organization. althouoh a direct
relationship to an)' particular cosl objective
cannot be shown.
b. Any cost allocable to a particular award
or other cost objective under these prinr.iples
may not be shifted to other Federal awards to
overcome funding deficiencies, or to avoid
restrictions imposed by law or by the terms
of the award.
5. Applicable crediL~.
a. The term applicable credits refers to
those receipts. or reduction of e)(penditures
which opera te \0 offset or reduce expanses
items that ere al10caule to awards 85 direct
or indirect costs. Typical examples of Buch
tranwclions are: purchase discounts. rebates
or allowances, recoveries or indemnitics on
losses, insurance reCund.. and adjustments of
overpayments or erroneous charges. To Ule
extent thai such credits accruing or received
by Ihe organization relale to allowable cosl
they shall be credited to the Government
either as a cost reduction or cash refund os.
appropriale.
b. In some instances. Ihe amounts received
form the Fcderal Government to finance
organizational activities or service operations
should be trllaled as applicablc credits.
Specifically. the concepl of r.elting such
credit items against related expenditurcs
should be applied by the organizaton in
deterrning the rales or amounts 10 be
orgilnizat:on in determining the rales or
arnaounts tobe charged to Federal awards
for services rendered whenever the facilities
or other resources used in providing such
. services have be!!n financcJ c!irectly. in
whole or in part. b). Federal funds;
a( c) For rules covering program income
(Le.. gross income earned from federally
supported activities) see Allachment D 01
OMI3 Circular A-110. .
6. Advance and understandings, Under any
given"award the rea60nablen~ss and
allocability of certain items of costs may be
difficult to determine. This particularly true in
connection wilh orgi:Z;Btio~ thai receive a
preponderance of their support from Fcdcrul
agencies. In 'order to avoid subsequant
disallowance' or dispute based on
unreasomiblene~s or nonall~abili\y. II is
oCt!!n desirable 10 seek a wrilieil agreement
with the cognizant or awarding .allenqi in
advance of the incurrence of special or
unusal costs. The absence of an advance
apreement on any element of cost will not. in
itself. affectlha reasonableness or
aliocabi!ily of that element.
B. Direct Costs
1. Direct cosls lire those that can be
identified sp!!cifically w;th a particular final
cost objective: Le.. a particular award.
project. service. or other direct activity of an
orgftnizOllion. However. a cost ma\' nol be
assil!ned to lin aW<lrd 8S a direct cost if aD\'
oih~r cost incurred for the same purpose. i~
like circumstance. has been allocated to nn
award as an indirect cost. Cost identified
s;1eciflclllly with awards are direct cost of the
awards end are to be 8ssigned directly
thereto. Gost identified specificaliy with other
final cosl objectives of the organization arc
direct costs of those cosl objectives and are
nol to be assigned to oth!!r award. directly or
inclirectly.
2. [,ny direcl cost of a minor'llmount may
be treated i1S an indirect cC'~t ofor reasons of
pructicality where the occollnt treatment fur
such cost is consistently applied tu all final
cost objecth'es.
3. The cost 01 certain activities arc not
allowable liS charges to Federal awards (see.
for example, fund raising costs in p<lragraph
.I
A-122:2
21 01 I\llachment B), However. even Ihollgh
these cosl8 are unallowable for purposes of
computing charges to Federal awards. they
nonelheless must be trealed as direct eosl for
purpose. of delermining Indirect cosl rates
and be allocated their share of the
nrganization's indirect cosls if they represent
octi\.ities which (1) indude the salaries of
personnel. (2) occupy sp~ce. and (3) benent
from the organization's indirecl costs.
4. The costs of activities performed
primarily a8 a service to members. clients, or
Ihe gnnerBI public when significant and
necessary to Ihe orgunizalion's mission must
be \rea ted as direct costs when or not
nllov.'uble and be allocllted an equitilhle
share of indirecl costs. Some examples of
these typC' of activities include:
II. MlIinlenllnce Qf membership rolls.
subs.criptions. publica liom. 0 nd rela ted
fundiol16.
b. Providing services and information to
members. legislative or administrative
bodies. or the public.
c. Promotion. lobbying. ond other forms 01
public relations.
d. Meetings Bnd conferences except those
held to conduct the genera! administration of
the organization.
3. !\Iaintenacne. protection. and investment
uf ~pecial funds not used in operation of the
orguniza I ion.
r. Administration of group benefits on
behelf of members of clients includi:1g life
.and hospital insurance. annuity or retirement
plans. financial aid, etc.
C. Indirect Cosl.
1. Indirect costs are those that have been
incurred for common or joint objectives and
cennol be readil~'. identifilld with a p<lrticular
fin,,1 wst objective, Direct c.:Jsl of minor
amounts may be treated as indirect cosls
under thi) conditions described in paragraph
B.2. abo\'e. After dirp.ct costs have been
determined and assigned directly to awards
er other work as appropriate. indirect costs
arf those rem;;ining to be allocated 10
benefiting co~, objectives. A cost mp.y not he
allocated \0 an award as an indirect co~t if
Clll" othp.r cost incurretl for thc iame purpose.
in 'm:e cir~wn.tance~. .has been aS6ig~ed to
an ",,:ard as a direct cos\. 1
Z. Because of the diverse characteristics
IInd accounting practices of nonprofit
crganizalions. it is not possible \0 specily Ule
tYIlP.S 01 cost which maY be classified 116
i~riirect cost in all silu~tion. However, lypic"l
e~amples of indirect cost for many nonprofit
organizations may include depreciation or
use allowance.s o~ buildings and equipment,
the costs 01 operating and msintaining
f.lcilities. and general administration and
g('neralllxpenses, sllch as the sBlaries and
expenses of executive officers, personnel
administration. Bnd 8.ccounting.
D. Allocation of Indirect Cost and
Dr/erminotion of lndirect Casl Rutf's.
1. General.
a. VI'here a nonprofil or!!anizolion hdS only
une rr:li;Ur function, or where ail i\s major
functions benefit frum its indirect costs to
approximatel)' the same degree, the
allocclion of indi:ccl Gosls and Ihe
I
Office of Management and Budget Circular A-122 (6/27/80)
computation of an indirect cost ute Dl&y be
accomplished throu~h simplified alloc8tion
procedures as dosc:ribed in paragraph 2
below.
b. 'A/here an ofgonir:ation hal several major
functions which benefit from its indirect cosls
in varying degrees. allocation of indirect
costs may require the accumulation of luch
costs Into separate cost groupings which then
are allocated individually 10 benefiting
functions bv menns of a bo,e which best
measures the rp.lntive degree of benefit. The
indirect cosls hllocaled to each function are
lhcn distribuled to individual awards and
other activities included in thai dunction by
means of on indirect COil rote(s}.
c. The determination of whal constitutes an
or~anization's mnjor functions will depend on
its purpose in beins: the types of sen'ice' it
renrlers to the public, ils clients. and jls
members: ond the IImollnl of errorl II dcvolcs
to such activities os fund raising, public
information and membership activities.
d. Specific melhod, for alloca ting indirect
costs and computing indirect cost ra les along
wilh lhe conditions under which each method
should be used are described in paragraphs 2
through 5 below.
e. The base pcriod for the allocation of
indirecJ costs is the period in which such
costs are incurred and accumula ted for
allocation wowork performed in that period.
The base period normally should coincide
with the organizaUon', fiscal year. but in any
evnt, shall be so selected 0& to avoid
Inequities in the allocation of the costs.
2. Simplified allocation method. .
a. V.'here an organizalion's major functions
benf:fit from i ls indirect co, ts to
approximately the same degre. the a!localion
of indirect costs may be acco:nplished by (i)
separating the organi:r.ation's total costs for
the base period as either direct or indirect.
and Iii] dh'iding the totalllllowable indirect
costs (net of ap'piic:able credits) by an
equitable distribution base. The result of this
process is an indirect cost rale which is used
to distribute indirect costs to individual
a wards. The ra te should be expressed as the
percentage which the total amount of
allowable indirect costs bears 10 the bose
selected. This method should alos be used
where an organization has only one major
function encompassing a number of
individual projects or Ilcti\'ities, and may be
used where the level of Federal awards to un
organi:r.alinn is relatively smalL
U. both the direct costs and the indirect
ccsts shall exclude capasl expenditures and
unallowaule costs. I iowever. unallowllble
costs which represent activities must be
included in the direct costs under the
conditions described in paragraph B.3. above.
c. The distribution base ma}' be total direct
costs (excluding capital exp,mailures and
other distorUng items, such Ii~ major
subcontracts or s~bbranlti). direct selaries
and ,,"uges, or other bsse which results in an
equitable distriblJtion. The dis:ributioll base
shall generally exclude partidpant suport
cosL' as defined in paragraph 211 of
Attac:hment B.
d. Exce~.t ""here a s!-,ecia! rc\e(s) i~
required in accordance with paragraph 0.5
below. the .indirect.~t ule d400fG1oped.....d.er
the above princ,ipw., ~5 gro>liCIIIJ\c JD sll
Bwsrd, al.the O<1lani:u<lion..u a spocinl
rate(s) is required..llppraprialtl moduIl;..tiorul
shall be made in order to develop .the special
ratc{s}.
3. Multiple aJlocation base method.
a. Where an oTF8nization's indiract cosls
benefit its major functiona in \'8rying degrees.
Buch costs shall be 8ccumutatod into Beparate
cost grouJrinl!R. Each grouping shall then be
IIllocaled individually to benefiting functions
by means of 8 bose which best measures the
relative benefih.
b. TIle groupings shall be estnblished so as
to permit the allocation of aach grouping .on
the basis of benefits provided to the major
functionB. Each groupin.'; should consLllute a
pool of expenses that are of like character-in
lerms of the fllnnlions they henefitllnd in
tcnllS of lhe ullucllliulI hllR" whl'~1 I"'Nt
measurs lhe relative benefits providd \0 each
function. The number of separate groupings
should be held within praclicallimits. taking
into considerution the materialily of lhe
amounts involved and the degree of precision
desired.
c. Actual conditions must be taken into
account in selecling the base to be used in
allocating the expenses in each grouping to
benefiting functions. When an allocation can
be made by assignment of B cost grouping
directl~' to the function benefi ted. 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
bolh the Government and the organi:r.ation. In
general. any cost element or cosl related
factor associated with the organi:r.ation's
work is potentially adaptable for use as an
alloca lion base provided Ii) it can readily be
expressed in terms of dollars or olher
quanlitaUve measures [total direct costs,
direct salaries and ....ages. staff hours applied.
square feet used. hours of usage. number of
documents ~rocessed. popula lion served, and
the like) and (ii) it is common to the
benefj ling functions during the lJase period.
d. Except where a special indirect cost
rale(s) is required in accordance with
paragrilph 0.5. below. the sepnrate groupings
of indimct cosls allocated \0 each major
function sholl be agrcgated and treated as a
common pool for that function. The cosls in
the common pool shall then be distributed to
indivisual awars inciuded In that function by
use of a single indirect cost ra te.
e. The distribution base used in computing
ti,e indirect cost rate for each function mav
be tolal direct costs (excluding capital .
c:-;penditures and other distorting items such
LiS major subcontracts and subgrants), direct
~aJaries and wages, or other ase which
results in an equitable distribution. The
distribulion base shall generally exclude
participant support costs as deCined in
paragraph 29. Allachment B. An indirecl cost
rate should be developed fir each s~parate
indirect cosl pool developed. The rate in each
case should be staled as the percentage
whinh the amount of the particular indirect
cost pool is of the distribution base identified
.I
A-122:3
with that~
4. Direct allocation nre!hod.
a. Some rnmprofil organi:r.atiom, treat all
costs as direct cosls expect general
administration and general expenses. These
organizations generlllly sepurale their costs
inlo thre basic categories: (i) General
administration and general expenses, (ii)
fund raising, and (iii) other direclfunctions
(including projects performed under Federal
awards), Joint costs. such as depreciation,
rentnl costs. operation and maintenance of
facilities, telephone expenses, and the like
are proraled indivisually as direct cosl 10
each category and to each award, or other
activity using a base most appropriate to the
particular cost being proruted.
b. This method is acceptable provided each
joint co.st is prorated using a base which
IlcGllfalely mellSllfes the henefils provided 10
cllch IlwlI'rd or ulhcr IIcllvll\'. Tho hll""" 11111111
be established in accordan~e wilh resonable
criteria. and be supporled by current dnta.
This method is compatible with the
Stnndards of Accounting and Financiu!
Reporting for Voluntary Health and Welfore
Organizalions issued jointly by the National
Health Council. Inc., the National Assembly
or Volunlar\' Health and Social Welfare
Organi:r.ati~ns, and the United Way of
America.
c. Und!lr this method, indirect costs consist
eclusively of gnneral administrl1tion and
generu 1 expenses. In all other respects. the
orgnnization's indirect cost ratess sha! be
computed in the same manner as that
described in paragraph 0.2 above.
S: Special indirect cost rates. In some
instances. a single indirer.l cost rale for all .
activities of an organi:r.atlon or for each major
function of the organiza tion ay not be
appropriate, since it would not take into
account those different factors which may
substantially affect the indirect costs
applicable to a particular segment of work.
For this purpose. a particular segment of
,""ork. For this purpose. a particular segment
of work may be Ihat performed under a single
award or it ma\' consist of work under a
group of awards performed in a common
environment. the factor.. may include the
physical location of the work, the level of
administra tive support required. the na ture of
the facilities or order resources employed. the
scientific disciplines or technical skills
involved. the organizational arrangemenls
used, or any combination thereof. VVhen a
particular segment of work is performed in an
environment which appears 10 generate a
signiricantly different level of indirect costs,
provisions should be made for a separate
indirect cost pool applicable to such work.
The separate indirect cost pool should be
developed during the course of the regular
ollocation process, and the separate indirect
cost rate resulting lherefrom should be used
provided it is determined that (i) the rate
differs significantly from that which would
have been obtained under paragraph 0.2, 3.
and 4 above, and (ii) the volume of work to
which the rate would apply is material.
E. Negotiation alld Appro vol of Indirect Cost
nates.
I
Office of Management and Budget Circular A-122 (6/27/80)
1. Definitions. As used in this section. thl:
following terms have the meanings set forth
below:
a. "Cognizant agency" menns the Federal
agency responsible for negotia ting and
approving indirect cost rates for a nonprofit
organizalion on behalf of 011 Federal
agencies.
b. "Predetermined rote" means an indirect
cost rate, applicable to 0 specified current or
future period, usually the organization's fiscal
Year. The rate Is based on an estimate of the
costs 10 be incurred during the period. A
predetermined rate is nol 8ubject to
8djustment.
c. "Fixed rale" means an indirect cost rate
which has the slime characterislic~ as 0
predetermined rale, excepl thaltne difference
between the estimated costs and the actual
costs of the period covered by lhe rule is
carried forward a8 an adjustment to lhe rate
compulation of a subsequent period.
d. "Final rate" means un indirect cost rate
applicable to a specified post period which is
based on the actual costs of the period. A
final rate is not subject to adjustment.
e. "Provisional ra te" or billing ra te means a
temporary indirect cost rale applicable to a
specified period which is used for funding,
interim reimbursement, and reporling indirect
cbsts on awards pending the establishment of
a ra te for the period.
r. "Indirect cost proposal" means the
documentation prepared by an organization
to 8ubslantiale its claim for the
reimbursement of indirect costs. This
propasal provides the basis for the review
and negotiation leading to the establishment
of an organization's indirect cost rate.
g. "Cosl objective" means a function,
organizational subdivision, contract, grant, or
olher work unit for which cost da ta are
desired and for which provision is made to
accumulate and measure the cost of
processes, projects, jobs nnd capitalized
projects.
2. Negotiation and approt'aJ a! rotes.
a. Unless different arrangements arc
agreed to by the agencies concerned, the
Federal agency wit.h the largest dollar value
of awards wilh an organization will be
designated as the cognizant agency for the
negotiation and approval of indirect cost
rates and, where necessary, other rales such
as fringe benefit and computer charge-oul
rales. Once an agency is assigned cognizance
for a particular nonprofit organiza tion, the
assignment will not be changed unless there
is a major long.term shih in the dollar volume
of the Federal awards to the organization. All
concerned Federal agencies shall be given the
opportunity to parlicipa Ie in the negotia lion
process, but after a rate has been agreed
upon it will be accepted by all Federal
agencies. When a Federal agency has reason
to believe thaI special operating factors
affecting its awards necessilate special
mdlrect cost ra les in accordance wilh
~aragraph D.5 above, it will, prior 10 the time
loe rates are negotiated, nolify the cognizant
agency.
b. A nonprofit organization which has not
previously established on indirecl cost rale
with a Federal agency shall after the
crganization is advised that an oward will be
made and. in no event, laler than three
months after the effective dale of Ihe award.
c. Organizations lhat have pre\'iously
estabiished indirect cost rail'S must submit a
new indirect cost proposal to the cognizant
agency within six months after tne close of
each fiscal year.
d. A predelermined rate may be negotiated
for use on awards where there is leasonable
assurance, based on pas I experience and
reliable projection of the organization's costs.
that the rate is not likely to exceed a rale
ba~ed on the organization's octua) cosls.
e. Fixed rates may be negotiated where
predetermined rates are not considered
appropriate. A fixed rate, however. shall not
be negotiated if [i) all or a substantial portion
of lhe organization's awards are expected 10
expire before the carry.forward adjustment
can be made: (ii) the mix of Government and
non.government work at the organi7.ation is
too erratic to permit an equitable carry.
forward adjuslment; or (iii) the organization's
operations nuctuale significantl)' from year to
year.
f. Provisional and final rales shall be
negoliated .where neither predetermined nor
fixed rates are appropriate.
g. The results of each negotiation shall be
formalized in a written agreement between
the cognizant agency and the nonprofit
organization. The cognizant agency shall
distribute copies of the agreement to all
concerned Federal agencies.
h. If a dispute arises in a negotiation of an
indirect cost rate belween the cognizant
agency and the nonprofit organization, the
dispute shall be resolved in accordance with
the appeals procedures of the cognizant
agency.
i. To the extent that problems ure
encounlered among the Federal agencies in
connection with the negotiation and approval
process, the Office of Management and
Budget will lead assistance as required to
resolve sllch problems in a timely manner.
[Circular No. A-122]
Allachmcnt B
Selected hems of Cost
Table of Contents
1. Advertising costs
2. Bad debts
3. Bid anrl proposal costs [reserved)
4. Bonding costs
5. Communication costs
6. Compensa lion for personal services
7. Contingency provisions
fl. Contributions
1>. Deprtciatlon llnd use allownnces
10. Donations
11. Employee morale, health and .welfare
costs snd credits
1::. EnlerlBinrnent costs
13. Equipment and other capital expenditures
H. Fines and penalties .
15. Fringa benefils
Hi. Idle 'racilities and idle car-nci:y
17. Independent research and development
(resen'ed)
In. Insurance and indemnification
19. Inlere~l. fund-raising. and investment
managem!:nt costs
2.0. Lebar relalions costs
.I
A-122:4
21. Lpss('s on othe. award.
2::. M;Jiolen~nce a:1d r<:pllir costs
23. MateriRls I',nd supplies
24. l\kelin;-:s. confercncr:s
2.;. Meml..erships, subscriptions. ~lld
prGfcssional activity cosls
20. Organization costs
Z7. O,'erlimc, exlra'pRY shifl. and multishifi
prcmiurr,s
28. Page chargcs in professiunal journals
Z9. P~rticipllnt support costs
:l9. Palenl costs
31. Pension pluns
32. Plunt sccurity costs
.33. PreawRrd cosls
34.. Professionlll service costs
35. Profits and 10llses on disposition of
depreciuble properly or other capitol
IIssels
JfJ. Public it'iformlltion sen'ice cosls
37. publication nnd prinling costs
:in. Rearrangement and alteralion costs
39. Recon\'ersion costs
40. Recruiling cosls
41. Relocation cost~
42. Rental costs
43. Royalties und other costs for lrt;c of
palents Bnd copyrights
44. Severance pay
45. Specialized service facilities
46. Taxes
47. Termination costs
40. Trainms and education costs
49. Transportation costs
50. Travel costs
[Circular No. A-l22]
Allnchmenl B
Selected hems of Cost
Paragraphs 1 through 50 provide principles
to be applied in establishing the allowubility
of certain items of cosl. Thege principles
apply whether a cost is trea ted as direct or
indirect. Failure to mention a particular item
of cost is not intended to imply that it is
unallowable: rather determination as to
nllowability in "ach case should be based on
the trealment or principle~ provided for
similar or rela led items of cosl.
1. Ad,'ertising casts. .. "I
a. Ad"ertising cosls mean the costs of. -
media sl'.rvices and associated costs. Media
advertising includes magazines. new~pap~rs.
radio and television programs. direct maiL
exhibits. and the like.
b. The only advertising cosls allowable are
those which are solely for (i) the recruilment
of personnel when considered in conjunction
with all other recruitment costs, as set forth
in parasraph 40;.(ii) the procurement of goods
and scrvices: (iii) the disposal of surplu5
materials acquired in the performance of the
awnrd except when organiz:ations are
reimbur~ed for disposals at II predetermined
nmount in accordance with Attachment N of
OMU Circular A-110: or (h'l specific
requirements of the award.
2.. Bad dobis. Bad'{!ebts. including losses
(whether aCluli1 or estima led) arising from
uncollectible accounts IInd othor c1l1ims,
related collection cosls. and relall'o;l legal
CO~18. Iirc una 1I0wable.
3. Bid and proposal costs. [rescrved)
4. nandin!] costs.
!'
.-.\
I
I
Office of Management and Budget Circular A.122 (6/27/80)
a. I30nuing cosls arise wh!)n the .
Government requirCl6.assurance al(R\ll6t
lirltlocialloss 10 it.sell or others hy reason of
Ihe act or default of the organiLation. They
urise otso in instances where the or!!aniution
rr.quirtls similar assurance. Included are such
bonds as bid, performance. paymenl.. .
u~hanee payment. InfringemenL and fidelity
bunos.
b. Custs of bonding required pursuanl 10
the terms of thr. awardllrr allowlIhle.
c. C05ts of bonding required bj' the
org.lniz.1Jtion in the general conducl of ill
opr.rat:ons arc allowable to the e>:tcnlthot
slIch bonding ls in occordnnce with sound
business practice 0 nd the ro les Bnd premiums
/He reason"ble umler the circumstances.
5. Communication oo,qt~. Costs incurred for
tclel'hone servicea. local and long distance
telephone coils, teleg:nms. radio1\f1um.
poslage and the li~e. are allowable.
6. Compensation for personal sen'ices.
a. Definition. Compensation {or penonal
services includes /Ill compe:lsallon poid
currenlly or accrued by the organi::ation for
services of employees rendered during the
period of the award (exccpt os otherwise
pro\'ided in paragraph g. below). II includes.
but is not limited to. aalaries. wages.
director's and executive commiltee member's
fees. incentive awards. {ringe benefits.
pension plan coats. allowances lor oIT-site
pn~'. incentive pay. location allowances.
hcrdship pay, ODd cost of li\'ing differentials.
b. A /Jowabilily. Except as otherwise
s;lecifically provided in this paragraph the
costs of such compensation are allowable to
the extent that:
(1) Total compensation lo.individual
employees is reasonable for the aervices
rendered end conforms to the estabiished
policy of the orgoni2:Blion consistently
applied to both Government and Don-
Government activilies: and
(Z) Charges to awards whether treated as
direct or indirect cost. Eire dete.mint:d and
supporled a's required in this paragraph.
c. ReosanablCIless.
(1) When the organizatiOf) is predominantly
engaged in activities olber lban lbose
sponsored by the Government. compensation
for employees on Governmont-sponsored
work will be considered reasonable 10 the
extent that It is consislenl with that paid lor
similar work in Ihe organi2:ation's other
aclivities.
(Z) When the organization is predominantly
engaged in Government.sponsored activities
and in cases where the kind of employees
required for the Government Bcti\'itieB.are
not found in the organizatioo's other
aclivities, compensation for employees on
Government-sponsored work will be
considered reasonable .to the extent thal it is
comparable to that paid for similar work in
the la bor markets in which the organization
competes for the kind of employees involved.
d, Special considerotions in determining
allowabilil.l'. Certain conditions f'e{juire
special consideration and possible limitations
In determining cos.!s under Federal awards
where amounts or typC$ of compensation
appear unreasonable. Among such conditions
are Ihe lollowing:
[1) Compensu lion to members of nonprofil
orpaniL;:tions. trustees. direclors. a~soc.iRtes.
officers. or the immedinle l..milie8 thereof.
Determination should he made thot sllch
compensation is reQsnnnlJle for the actunl
person"t servir.es rendered rllther than a
distribution of earnings in excess of cos~.
(2) Any change in an orgnlli:tBtion's
compcnsalion policy rr.sulting in a
substantial increase in the organi2:alion's
level of compensation. particularly when it
was concurrent with on increase in the ratio
of Government cward~ to other activities of
the organiz.ation or any chnnge in the
trentmenl of allowaliility of specific t)'pes of
compensatiun due to changes in Government
policy.
e. Unallowable casts. Costs ",'hich are
unnllowable under olher paragraphs of thi~
Attachment shall not be allowable under thi,
paragraph solely on tile basis that they
constitute personal compensation.
f. Fringe benefits.
(1) Fringe benefits in the {onn of regular
compensation paid to employees during
periods of authodLed absences Irom the job,
such as vacalion leave. sick leave. mililary
leave. aud the like, arc allowable provided
such costs are absorbed by 011 organization
activities in proportion to the relative amount
of time or effort actually de~'oted to each.
(2) Fringe benefits in tbe lorm of employer
contributions or expenses lor social securily,
employee insurance. workmen's
compensation insurance. pension plan costs
(see paragraph g. below). and the like. are
allowable provided such benefits are granted
in accordance with established wrillen
organization policies. Sucb benefits whether
trea led as indirect costs or as direct costs.
shall be distributed to particular awards and
other activities in a manner consistent with
the pallern o{ benefi ts accruil18 to the
individuals or group of employees whose
salaries and wages arB chargeable to such
awards and other adivilies.
(3)(a) Provisions for a reserve under a self-
inSurance program for unemployment
compensation or workmen's compensation
ere allowable to the ex lent that the
provisions represent reasonable estimates of
the liabilitiec for such compensation. and tho
types of coverage, exlenl of coverage. and
rates and premiums would have been
allowable had insurance been purchased 10
cover the risks. Howevor. provisions for self.
insured liabilities which do not become
paya ble lor more than one year after the
provision is made shall not exceed the
present value 01 the liability.
[b) Where an organization follows a
consistent poley 01 expensing actual
payments to. DrOD behalf 0[, employees or
former employees {or unemployment
:CO-mpensation or workmen's compansation.
such.payments are allowable in the year of
-payment with the prior approval o{ the
awarding agency provided they are allocated
toall activilies of the organizalion.
(4) Costs of insurance on the lives of
lrustces. officers, or other employees holding
positions of similar responsibility are
allowable only to the extent that the
insurance represents additional
compensation. The costs of such insurance
when the organization is named as.
.1
A-122:5
beneficiary are unallowable.
g. Pension pIon casts. .
(1) Co~ts of the organization's pensIOn plan
which are incurred in accordance with the
e~tablished policies of the organization are
allowable. provided:
(a) Such policies meet the test of
reasonableness;
(b) The methods of cosl allocation are not
discriminatory: .
(c) The cost assigned to each fiscal year is
delermined in accordance with generally
accepted accounting principles as prescribed
in Accounting Principles Board Opinion No.8
issued by the American Instilute of Cerlified
Public Accountanls; and
(d) The costs assigned to a given fiscal yenr
ere funded for all plan participants within six
months alter the end of thaI year. However.
increases to normal and past service pension
cosls caused by a delay in funding the
Bctuarialliability beyond 30 days alter each
qunrler 01 the year towhich such costs are
assignable are unallowable.
(2) Pension plan termination insurance
premiums paid pursuanlto the Employee
Retirement Income Security Act of 1974 (Pub.
L. 93--400) arc allowable, Late payment
charges on such premiums are unallowable.
(3) Excise taxes on accumulated funding
deficiencies and other penalties imposed
under the Employee Retirementlncome
Security Act are unallowable.
h. lncenth'e 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 tobe reasonable
and such cosls are paid or accrued pursuant
to an agreemenl entered into in good faith
between the organization and the employees
before the services were rendered, or
pursuant 10 an established plan followed by
the organization so.consistently as to imply,
in effect. an Bgreementto make such
payment. .' .
i. Overtime. extra pay shift. and mull1shlft
premiums. See paragraph 27.
j. Severance po)'. See paragraph 44.
k. Training and education CIO~tS. See
paragraph 48... .'
1. Support of salaries ond wages. -
(1) Charges to awards lor salarie~ and
wages. whether trea ted as direcl cosls or
indirect costs. will be based on documented
payrolls approved by 8 responsible official{s)
of the organization. The distribution of
snlaries and wages 10 awards must be
supported by personnel activity reports as
prescribed in subparagraph (2) below. except
when a substitute system has been approved
in "'Tiling by the th~ cognizan t agency, (See
paragraph E.2 of Attachment A)
(Z) Reports reflecting the distribution of
activity of each employee must be
maintained for all staff members
(professionals and nonprolessionals) whose
compensa tion is charged. in whole or in part.
directly 10 awards. In addition. in order to
Bupport the allocalion of indirecl costs. such
reports must also be maintained for other
employees whose work involves two or more
funcitons or activities if 8 distribution 01 their
compensation between such lunctions or
or.livilies is needed in the determination of
I
.1
, .
Office of Management and Budget Circular A-122 (6/27/80)
theorganization's indirect cost rale(s) (e.g..
en employee engaged part-time in indirect
cost activities and part. time in a direct
function). Reports maintained by nonprofit
organizations to satisfy these requirements
must meet the following standards:
(a) The reports must reflect an after-the-
fOCI determination of the actual activity of
each employee. Dudget estimates (Le..
estimates determined before the services are
performed) do nol qualify as support for
chllr~es to awards.
(b) Euch report must account for the totol
acti\.ity for which employees are
compensated and which is required in
fulfillment of their obligations to the
organizotion.
(c.) The reports must be signed by the
individual employee. or by a responsible
supervisory official having first hand
knowledge oLthe activities performed by the
employee. thot the distribution of activity
represents a reasonable estimate of the
actual work perforrnad 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 and wages of
nonprofessional employees. in addition to the
'supporting documentation described in
subparagraphs (1) and (2) above. must also
be supported by records indicating 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. L'le term "nonprofessional
employee" shall have the same meaning as
"nonexempt emplo~'ee," under the Fair Labor
Standards Act.
(4) Salaries and wages of employees used
in_meeting cost sharing or matching
requirements on llwards must be supported in
the same manner as salaries and wages
claimed for reimbursement from a\,,'arding
agencies.
i. Contingency provisions. Contributions to
a contiogency reseM-'e or any similar
provision made for events lheoccurrence of
which cannot be icretold with certaintv as to
time. intensity. or with an assuronce or their
happening. are unallowable. The term
"contingency reserve" excludes self.
insurance reserves (tee paragraph 6.f.(3) and
lG.a.(2)(d)): pension funds (see paragraph
6.(g)); and reserves for normal severance pay
(see paragraph 44.(b)(l).
6. Contributions. Con:ribulions and
donations by the organization to others are
unallowable,
9. Deprecioiion and use allowances.
a. Compensation for the use of buildings.
other capital improvements. and ~quipment
G~ r.and may be made through use
?liowanr;es or depreciation. However. except
as prrwidcd in paragraph f. below a
l:omuinalion of the two methods mav nol Ix!
l:sed in connp.ction witl: a single cla;s of
fixed as.~ts (e.g.. buildings. office equipment.
COlllputer equipr.1ent. etc.).
b. The computation of use allo",'ances or
r.'~pr ciat,c,n shall be based on the
;;,~'!" silion cost of the assets involved. The
ur.o:; silioo Cosl of an osset donated to the
or~anization by a third part~. shall be its fair
market value at the time of the don<ltion.
c. The computation of use allowonces or
depreciation will exclude.
(1) The cosl of land;
(2l Any portion of the cost of buildings and
equipment borne b)' or donated by the
Federal Government irrespective of where
title was ori~inally vested or where it
presently resides; and
(3) Any portion of the cost of buildings and
equipment cO:1tributed by or for the
orl'anizatiun in satisfaction of a Sl'ltulory
matching retiremenl.
d. Where the use allowance method is
followed. the use ollowance for buildings and
improvement (including land improvements
such as Pllved rarking areas. fences. and
sidewalks) will be computed at an annual
rate not exceecing two percent of acquisition
cost. The use allowance for equipment will
be computed at an annual rate not exceedir.g
six and two.thirds percent of nC9uisilion cosl.
When the use allowance method is used for
buildings. the enlire building must be treated
os a single asset; the building's components
[e.g. plumbing system. healing and air
conditioning. etc.) cannot be segregaled from
the building's shell. The two percent
limitation. however. need not be applied to
equipment which is merely attached or
fastened \0 the building but not pt'rmanenlly
fixed to it and which is used 8a furnishings or
decorations or lor specialized pU'i'oses (e.g..
dentist chairs and dentaltreatrnent units,
counters. laboratorv benches balled to tha
fioor. dishwashers:carpeling. etc.). Such
equipment will be considered as not being
permanently fixed to the building if it can be
removed without the need for costl\' or
extensive allerations or repuirs 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.
the period of useful service (useful life)
established in each case for usable capital
essets must take i:lto 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 /lsset (or group
of assets) to accounting periods sball reflecl
the pattern of consumption of the asset
during its useful life. In the absence of clear
evidence indicating that the expected
consumption of the assel will be significantly
greater or lesser in the early portions of ils
uscfullife than in the later portions, the
s:raight.line method shall be presumed to be
tr.e appropriate method. Depreciation
fI1cl.hods once used shall not be changed
uniess approved in advance by the cognizant
Fecp.ral agency. When the depreciation
melhod is introduced for application to assels
previously subject 10 a use allowance. the
combination of use all'Owances and
ckprecialion applicnble to such assets must
not exceed the total acquisition cost of the
nssets. VI'hen the depreciation method is usell
f<.r huildinl's. a buildil1l:'& shell may ue
A-122:6
Sl'gregaled from each building component
(e.!!.. pl.Jmbing system. heating. and air
conditioning system. etc.) and each item
depreciated over ils eslima'ed useful life: or
the entire building (Le.. the shell and all
cumponents) may be trealed as 8 single asset
and depreciated over a single uscfullife.
r. When the depreciation method i6 used
for a particular class of assets. no
depreciation may be allowed on any such
assets that. under pura!;roph e. above. would
he viewed a6 fully depreciated. However. a
reasonllble use allowance may be negotiated
for such assels if worranted after taking into
consideration the arnount of depreciation
previously charged \0 the Government. the
estimated useful life remaining 01 time of
negotiation. the effect of any increased
maintenance charges or decreased efficiency
due to age. and any other foctors pertinent to
.the utilization of the asset for the purpose
contemplated.
g. Charges for use allowances or
dcprecio tion must be aupported by odequa te
property records and physical inventories
must be taken at least once every two years
(a statillical sampling basis is acceptable) to
ensure that assets exist and are usable and
needed. When the depreciation method is
followed. adequa te deilrecia lion records
indicating the amount of depreciation taken
cach period must also be maintained.
10. Donations
a. Services received.
(1) Donated or volunteer services may be
furn~shed to an organization by professional
and technical personnel. consultants. and
other skilled and unskilled labor. The value
of lhese services is not reimbursable either as
o direct or indirect GOsl.
(2] The value of dona ted services utilized
in the performance of a direct cosl activity
shall be cClnsidered in lhe delermination of
ti.e organiz.ation's indirect cost raters) and.
accordingly. shall be allocftted a
J,roporlion::ltc share of applicable indirect
costs when the following circumstances exist:
[a) The agg:-egate \'Hlue 01 the servic;cs is
nl"terial:
[b) The service6 are supported b~'-{l
signiric;:Jnt <lmo\mt of lbe i~lirect costs. . .
incurred bv the organiza lion:
Ic) The dirr.ct cost aclivity is not pursued
primarily for the benefit of the Federal
Go\'(,mmenl.
(3) In those illstances where there is no
b,lSis fm determinin~ the fair market value of
the services rendCTeri. the recipient and the
cognizant Hgency shall negotiate an
"i;propriale aiiocution of inJirect cost to the
s(~n:;ccs.
(4) Where donated services direclly benefit
a ;:rojcct supported by an a ward. the indirect
cosls alloca ted to the services'" ill be
considered as a part of the total costs of the
projecl. Such indirect cosls may be
reimbursed under the award or used to meet
cost sharing or matching requirements.
(5) The valae of t~e donated servicc,s may
be used to mecl cost sharing or matching
requirements under conditions described in
1'.ltachment E. O!\1B Circular i'\o. A-llQ,
\\'hcre donated services ore tre,lled as
indirect costs. indirecI cost rales will
sepamlc the value of the donations so that
\
.,
I
Office of Management and Budget Circular A-122 (6/27/80)
reimbursemenl will not be made.
(6) Fair market value of dona led services
shall be computed as follows:
(a) Ilates for volunteer sen'ices. Rates for
voluntel:rs shall be consistent with those
regular rates paid for similar work in other
activities of the organization. In cases where
the kinds of skills involved arc not found in
the other activities of the organiza tion. the
rates used shall be consistent with those paid
for similar work in the labor market in which
the organiza tion competes for such skills.
(b) Services donated by other
organizations. When an employer donates
the services of an employee. these services
shall be valued at the employee's regular rate
of pay [exclusive of fringe benefits and
indirect costs) provided the services are in
the same skill for which the employee is
normally paid. If the services are not in the
same skill for which tbe employee is normally
paid. fair market value shall be computed in
accordance' with subparagraph (a) auove.
b. Goods and space.
(1) Donated goods; Le., expendable
personal property/supplies, and donated use
of space may be furnished to an organization,
The value of the goods and space is not
reimbursable 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 Allachment E. OMB Circular No. A-ll0.
The value of the donations shall be
determined In accordance with Allachment
E. Where donations are treated as indirect
costs, indirect cost rates will separate thf
value of the donations so that reimbursement
will not be made.
11. Employee morale. health. and welfare.
costs and credits. The costs of house
publications. health or first.aid clinics. and/
or infirmaries. recrea lional activities.
employees' counseling services. and other
expenses incurred in accordance with the
organization's estauiished practice or custom
for the impro\'ement of working conditions,
employer.employee relations. employee
morale. and employee performance are
allowable. Such costs will be equitably
apportioned to all activities of the
organization. Income generated from any of
these activities will be credited to the cost
. thereof unless such income has been
irrevocably set over to employe~ welfare
organizations. .
12. Entertainment costs. Cosls of
amusement. diversion. social acti\'ilies.
ceremonials. nnd cosls relating thereto. sue!.
as meals'. lodging. rentals. transportation. and
gratuities are unallowable (bul see
p..rngraphs 11 and 25).
13. Equipment and other capilol
e.\pcnditures.
a. As used in this paragraph, the following
tcnr~ ba\'cLhe. mrrqninm; l!.~.lfgrlh below:
(1) "Equipmenl" means an article of
nonexpcnda ble .tangible personal property
haVing a uscfullife of more than two years
Ilrld an acquisition cost of $500 or mo;e per
unit. An organization ma\' use its own
dcfinition provided that i'l alleast includes all
nOO1expendable tnngible pcrsona! properly as
defined herein.
(2) "Acqui!ition cost" means the net
invoice unit price of an item of equipment.
including the cosl of any modifications.
allachments. accessories. 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, freight. and ins lallation
shall be included in or excluded from
acquisition cost in accordance with the
organization's regular wrillen accounting
practices.
(3) "Special purpose equiplolent" means
equipment .....hich is usable only for research.
medical. scientific. or technical activities.
Examples of special purpose equipment
include microscopes. x.ray machines. surgical
instruments, and spectrometers.
(4) "General purpose equipment" means
equipment which is usable for other than
research. medical. scientific. or technical
activities. whether or not special
modifications arc needed to make them
suilable for a particular purpose. Examples of
general purpose equipmen t include office
equipment and furnishings. air conditioning
equipment. reproduction and printing
equipment. motor vehicles. and automatic
data processing equipment.
b. (1) Capital expenditures for general
purpose equipment are unallowable as a
direct cost except with the prior approval of
the awarding agency.
(2) Capital expenditures 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 with the prior approval of the
awarding agency.
d. Capita) expenditures for improvements
to land. b\:ildings. or equipment which
materially increase their value or useful life
arc unallowable as a direct cost except with
the prior approval of the awarding agency.
e. Equipment and other capital
expenditures ere unallowable as indirect
costs. However. see paragraph 9 for
allo.....abilit\' of use allowances or
depreciatio"n on buildings. capita]
improvements. and equipment. Also. see
paragra~h 42 for allowability 01 rental costs
for land, buildings. and equipment.
14. Fines and penalties. Costs of fines and
penalties resulting Irom violations of. or
failure of the organization to comply with
Federal. State. and local laws and retulalions
are unallow;;bie except when incurred as a
result of compliance with specific provisions
of an awa!'d or instructions in writing from
the awarding agency. .
15. Fringe benefits. See paragraph 6. r.
16. Idle facilities and idle capacity.
a. As used in this paragraph the following
terms have the meanings set forth below:
(1) "Facilities" means land and buildings or
any portion thereof. equipment individually
or collectively, or any other tangible capita'l
~sset. wherever located. and whether owned
or leased by the organization.
(2) "Idle facilities" means complete!\'
unlls.cd facilities Iha: are e'(cess to the'
organization's current needs.
(:J; "Idle opncity" means the unll~cd
_I
A-122:7
capacity of partially used facilities. lt is tbe
difference between that which a facility
could achieve under 100 per cent opera ling
time on a one.shill basis less operating
interruptions resulting Irom time lost [or
repairs. petupsr unsatlsfaclol1' materials, ana
olher normal delays. and the extent to which
the facility was actaally med lo meet
demands during the accountin~ period. A
mullishifl basis may ue used if it can be
shown that this amounl of usage could
normally be expected for the type 01 facilily
involved.
(4) "Costs of idle facilities or idle capacity"
means costA such as maintenance. repair,
housing. renL and other relaled CoSUl; e.g..
property taxes. insurance, and depreci;; tion
or use allowances.
b. The cosls of idle facilit.ies are
unrtllo\~able except to the extelltlh"t:
(1) They are unnecessary to meet
nucluations in workload; or
(2) Although not necessary 10 meet
nuctuations in workload. they were
nr:cessary when acquiretland arc now idle
becauGe of changes in program requirements.
efforts to achieve more economical
operation~, reorgani:t.:ltion. termination, or
other causes which could not have been
reasonably foreseen. [:nder the exception
stated in tbis subparagraph. costs of idle
facilities arc allowable fo!' a reosonable
period of time. ordinarily not to exc~ed one
year. depending upon the initiative taken to
use, lease. or dispose of such facilities (but
see paragraphs 47.b. and d.).
c. The costs of idle capacity are normal
costs of doing business and are a factor in the
normal nuctuations of usage or indirect cost
ra tes from period to period. Such costs are
allow>lble. provided the capacity is
reasonably anticipated to be Decessary or
was origi.'1ally reasonable and is s\:bjectlo
reduction or elimination by subletting.
rcnting. or sale. in accordance with sound
business. economics. or security practices,
Widespread idle capacity throughout an
enlire facility or among a group of assets
having substantially the same function may
be idk facilities. '
17. hdup.=ndcnt resc:o(Ch and dav~/opmen:
lReserv~dl. .
18. Insurance and indemnification. I
a. Insurance includes insu~ance which the
organization is required to carry, or which is
approved, under the terms of the .:ward and
any other insurance which the organization
maintains in connection with the general
conduct of its operations. Thin paragraph
docs not apply to insurance which represents
fringe ben~fits for employees [~ee paragraph
6.f. and 6.g.[2J).
(J) Costs of in3;,;-ance r~quired or
ar-proveu. and maintained. pursuent to the
award are allowable.
(Z) Costs of other insurance m>ljnt~ined b\'
the org;;nization in connection with the .
pcneral conduct of its operations are
Iillowable subject to the following limitations.
[a) Types ond extent of covcrage shall be
in l!ccordance with sound business practice
and the r~tes ond premiums shall be
reasonable under the circumstances.
(01 C05t3 Allowed for business interruption
or oth~r similar insurancc shall be limited to
\
I
Office of Management and Budget Circular A-122 (6/27/80)
cxclude coverage of m<lnagem~nt fees.
Ic) Cosls of insuronce or of any pro"i~icM
for a reserve covering the risk of loss nr
diill10ge 10 Government properly are
allowable only In !he extr.nt thai Ihe
orllqnizati!Jn i~ Hnhle for such loss or ,hm"O!'~.
[J) Provisions for a reserve unJer a self.
ins:Jrar,,:e prcgram are allowable to Ihe
exlenl thallype.~ of coverage. cxt~nt of
coverage. rnt.e~. ahd prr.miums woult! have
been allowcd had il'.su~nnce been plln;hased
to cov~r the ri~ks. Howr.ver. provision fur
Icnnwn or reasonablv estimu'ed sr.lf-i:1~urcd
liubilities. which do 'nol become paY3bie for
more than one year after the provision is
made shallllot exceed the present value of
the liability.
(e) Costs of insurance on the I(vcs of
trustees. officers. or othr.r c:nployer.s holding
positions of similar re~ponsiui!ities a~e
allo"~able only to the extent L,ct the
insurallce represents additional
compensation (see pnragrAph 6). The cost of
such insurance when the organization is
identified as thr. beneficiary is unallow;;ble.
(3) Actual losses which could hove been
covered by perm[r.nible inslJra:lce [throu;::h
Ihe purchase of insuran::e or a self.insurance
program) ore unallowable unless expressly
pro\-ided for in the awarn. except:
(a) Cosis incurred benause of losses not
covered under nomin;!l deductible insurance
coverage provided in heping with sou:ld
business practice are allowable.
(b) Minor losses not covered by insurance.
such as spoilage. breakag~. and
c;:sappearance of supplies. which occur in the
ordinary course of operations, are allowable.
b. Indemnifica tion includes securing the
organization against liabilities ~o third
persons and an)' other loss or damag~, not
compensated by insur>lllce or othen'l'ise. The
Government is obligateclto indemnify the
organization only to the exlent expressly
provided in the award.
19; Intere:;t, fund r"ising. and in1'estment
monogement costs.
a. Costs incurred for interest on borrowed
capital or temporary use of encowmenl
fund3. however represented. are unallowable.
b. Costs of organized fund raising.
including financial campaigns, endowment
drives. solicitation of gifts and beCjucsts. and
similar expenses incurred solely to raise
capital or obtain contributions are
unallowable.
c. Costs of investment counsel and staff
Bnd similar expenses incuITed saleh' to
enhance incom<:l frum Invest:nents a're
unallowable.
d. Fund raising and investment activities
shall be allocated an appropriate ~hnrc ef
indirect casts under the conditions described
in paragraph B of Attochment A.
20. Lobor relotions costs. Costs incurred in
mainta!ning sutisf"ctary re:ations bet....'een
the organizalion and its employees.inclucling
costs of labor ma;lagement nomI;littecs.
employee publications. and other related
activities are allowable.
21. Losses on other o'WOrds. Anv excess of
cosls over income on any award i's
unallowable as a cost of any other award.
This includes. but is not limited to. the
0~g2nization'6 contributr.d portion by rea~on
of ex'st sharin!: ~~reement3 or any
unuerrecoveries through nf'~otia tian of lump
SUIOS fnr. or ceilings on. indirect co~ls.
22. "fain!encnce and repair cost.~. C.:,sls
incuned for nec~3sary maintenance. repair.
N upkeep of buildin8~ "nj eqlli~meul
(incl,;ding Government propr.rty un\r.ss
o:her\'Ji~e provideu for) which neIther alld 10
Ihe Jlermanenl ,'alue of the property nor
uppreciably l1rclong il~ intendeJ life. but
ke~p it in an emdenl operatbg conrlitiC'n, arf'
ollowahle. Custs incurred for i~r-.rr>"l'mcnts
which add 10 the perm:ment yalue of the
buildings and equipment or apprecioldy
prolong their inle:lded life shall be treated as
cul'ital e)(p~ndilures (sec par"l;mph 13J.
ZJ. Materials and supplies. 111e costs of
materials and s!lpplies necessary to cil~ry out
nn award are a!lowable. Sm:h costs should be
charged at their actual prices after deducting
all cash discounts. tmde disr:ounts. rebalcs.
and allowances recc!'1ed uy thr. organi::;Jtion.
Withd~awals frt'm genela) slores or
stuckrooms should be charged at cost under
an:,' rccognized method of pricing
consistenlly applied. Incorr.ing transportation
charges may be a Jlroper part of fTJ:!lr.riaJ
cost. Ma lerials and suppEes charged' as 0
dir(!ct cost should include onl)' the nwlerials
and supplies actually used for the
performance of the contract or grant. nncl oue
credit should be given for ony excess
materials or supplies retained. or returned 10
vendors.
24. Meetings. canferences.
a. Costs associated with the conduct of
meetings. and confeflmces. and include Ihe
cost of renting facilities, m~nls. speakers'
fees, and the like. But see paragraph 12,
Enter!ainment costs, an::l paragraph Zg.
Participant suppert costs.
b. To the extent that these costs are
identifiable ,,-ith a partic:ulor cost objective.
they should be charged to that objeclive. (See
paragraph B. of Allachment A.) These costs
a~e ailowable provided that they meet Ihe
generultests of allowa ble. shown in
Attachment A to this Circular.
c. Costs of meetings and conferences held
to conduct the general administration of the
organization are allowable.
25. Memberships. subscrIptions. and
professional activit I' costs.
a. Costs of the organization's membership
in civic. businp.ss. tr.chnical and profp.ssional
or~anizations are allowable.
b. Costs of the organization's subscriptions
to civic. business. professional. and technical
periodicals are allowable.
c. Costs of attendancp. at meetings and
cQnferences. sponsored by olhers when the
primary purpose is the dissemination of
ted:nicnl information. are allowllb!e. This
inr.luJes costs of meals. tra'ls?ortatrcn. and
other itr.ms incidenlallo sunh atlend'lnce.
26. Orga/Jization costs. Exrenditure~. such
.15 incorporation fees, brok~rs' fees. fep.s to
promoters, organizers or management
c:{)n~ultnnls. atlornevs, accountcnts r>r
tnve&tment counsel~rs. wh~thcr or ~ot
~n:IJloyr.cs of the organization. in connection
wit!. e~t"blishment or reo~ganizatjon of on
or~an;:wtion. are unnllowable except wilh
prior appruyul of t!.e awording Bgency.
27. Ol'r.rlilnc. e.\'lra-pay sIt/ft. and
.1
A-122:8
mlll!lsh,'''' I're ~l/illf11S. Premiums for o\cr!in)\'..
rxtlil.pay shifts. nile; tn"ilishift work are
IlLowul,Je nniy wi;!. [!.e prior nppro,.,,1 of ;};p
u w;l~d;ng agency e>.eepl:
u. \'1'hen lI"ce~SMY \0 cope with
e~.le~~enl:ies. such C~ those I "sulling frun.
~..,:i,i..:",. n:!lulill di~astl'rs. brca:"downs of
pq"jl'r;'~nl, or ('cr:"Fi'Jn~1 ol'eralj~lnal
li:,ltle!'n\.:s of 1I spor/ldic n:lture.
h Whell l:::lpiorcl~s are perlor",io~ indin:ct
ftil1C:iQllR s\lL.:h uS ddministralioll.
n;;lin!pnancr.. or n('cLJun~ing.
c. In ,he p"dor/llllilce of tcsl~. !;,bnrutory
pr,,('(:Jures. vr ulher simii"r operatiuns whicn
ore f.l1:.t:I1UOllS in ilature and cannot
rea:;cll?~i:.' ue illternlplcd or othcrwis.,
COII1~I:~:!:'(.L
d. When 101'1',,1 overull cosl tu the
(;o';er"'.;nelll will rr.sult.
20. P,~yc churgc. in professional journals.
PalJe cJ1llrgcs for professional journal
publica lions are allowuuie as a necer-snry
part of rcsenrch costs. where:
a. The resc<:rch papers report work
sUI'PorteJ l,y the GO\'ernment: and
b. The c\;urf(cs <He levied impartially (In .ill
res(:an.h F~perr. published by the journat.
wheth'~r or noi by Government.sponsored
uulhnrs.
29. Participant slIpport C[lsts. Pur:icipant
Sllpport cosls arc direct costs for ilt~ms such
as stipend:; or subsistence allownnces. travel
llllowanne~. ..nu registration fees paid to or
Orl hehalf Qf participants or trainecs (but not
employees) in connection with meetings.
cnnferences. symposia. or training projects.
Th~se costs are allowable wilh the prior
i1JlprllVClI of the awarding agency.
30. ru!er;t casts.
a. CGsls oi (i) preparing di5c.1uSllres.
repo~ls, and other dt.curnents required by the
nw;;rd :/lId of searching the art to the exlend
nr.cessa ry to make such disclosures. (il)
preparing documents and any other palent
co~\s ir. connection wilh the filing and
prosecul:m: of a United states p.,tent
lIpp]jcnti-:on where tille or roynlly.free licp.nse
is reql1irc-c by the Governmf'nl to be
cOl,yeyed io the Government. "lnd (iii) general
l:ounselil,g services relating 10 patehl,and
copyright mllllers. such as QII:lvice on palenJ
and copyright laws. ~egulalions. clauses. and
employee a~rc-ements are allowable (bllt see
paragraph 34).
b Cost of preparing disclOS1Jres. reports.
.1ncl other documents aCId of searching the art
to Ihe extenl necessary to make di~closures.
if not req::ired by the a Wild. ue
unallllwabir.. Costs in connection with (i)
filil1~ and prosecuting any foreign palent
application. or (ii) any United Slates palent
;,pplicalioil. w!.r.rc the award does nol
rell',irc conveying title or a royalty.free
!;<.(,nsc tll the Go,'ernment. are unr.lIowab\c
(also ~ec parngraph 43).
31. Pension pions. See paragraph 6. g.
32. Plant secL'ritl' costs. Necessar\'
expenses incurred' to comply with .
Goverr.ment security reQuiremenls or for
f"cilitics protection. including wages.
unifol ms. and equipment of personnel are
allowuble.
33. Preall'ard costs. Preaward cosls are
thosc incurred prior to the effr.ctive date of
th" H\';ard directly pursllant to the
.
. .
I
Office of Management and Budget Circular A-122 (6/27/80)
negotilJtion Dnd in ~nticipation of the "ward
wht!ll' sULh costs is necessary to comply wilh
:he propo..ed delivery schedule or period of
performance. Such cosls Are allowaule only
lu ;he extent that they would have been
..i\owable if incurrer! of IeI' the dlltc of Ihe
('wonl BI~d only with the writlC'n Dpproval r.f
the ~;\.ardillg ngcn~r.
34. jJrn[cssionol serl.icc casts.
a. Cosls of profe~sional and consultant
services renclereJ by persons who arc
r.II''llbers of A particular professiun or possess
a special skill. anJ who are not officers or
cr"."iuyees of the organization. are n!lowable.
."bjeGt to U. c. nnd d. of this piiragraph when
rp'lIs(l\,:lule in f'~hltion.lo Ihe servicl's
rendered and Whe!l not contingent upon
recovery of the costs from the Government.
b. In del~rming lhe allowauility of r.osts in
a particular case. no single fnclor or any
special combination of fnelors is neccssaril).
determinlltive. However. the following
faclnrs are relevant:
(1) The nnture and scope of lhe service
rendered in rela tion to the service required.
(2) The necessily of contracting for th~
service. cnnsidering the organization's
r.ilpahility in the pnrticulnr area.
(3) The past pattern of such costs.
particularly in the years prior \0 Government
awnrds.
.(4) The impact of Government aw..rds on
the organization's business (i.e.. what new
problems have arisen).
(5] Whether the proporlion of Government
work 10 the organization's total business is
su~h as to innuence the organization in favor
of incurring the cost, particularly where the
services rendered are not of a continuing
nature a.nd have little relationship to work
under Government grants and conlructs.
(6) Whether the service can be performed
more economically by direct employment
rather than contracting.
(7) The qualifications of the individual or
concern rendering the service and the
cuslOfTlliry fees charged. especially on non-
Government awards.
((I) Adequacy of the contraclual agreement
for the service (e.g.. description of the service,
estimate of time required. rate of
compensation. and termination pro\'i~ions).
C. In addition to the factors in paragraph b
<lbove, reliliner fees to the allowable must be
sllflportedby evidenr.e of bona fide services
a\'ui1ab\e or rendered.
d. Cost of lagHl. accounting. and consulting
services. and related costs incurred in
conn~ction with dc!ense of antitrust suits;
and Ihe prosecution of clili.:Tls a~ainst the
Government. are 1111nllowRble. COSl5 of legal.
ac::;ounting und consulting services. and
related costs. incurrer! in connection with
patent in{ring~ment litigation. organization
und reorganizntion. are unallowable unless
otherwise pfClvided fo;: in the award (but see
parngraph 47e).
35. Profits and losses an disposition of
depreciable property or other capitol assets.
a.(l) Gains and 10Ases on sale. retirement.
or other dispotiition of Depreciable property
shull be inclurlea in the year in which they
occur as cred:', or charges to cost grouping(s)
in whfch the depreciation applicable to such
property wns included. The amount ~f the
f!ain or loss to be inr.\uder! as a credit or
char,:e 10 the appropriate cost f!rollpingls]
Sh~':l ue the dilfcrcnce het w('en the amount
f('nli7.ed on the prcpNly nnd the
\Jmlcprecialed basis 01 the properly.
(2) Gains and losses on the disposition of
clef.reciable propert)' shall not be recognized
os II separate credit or charge under the
following condilions.
lii) The gain or loss is processed through H
depreciation reserve account anJ is r(;necled
in the Jepreciation allowatJie under
pmagrnph 9.
(b) The property is hiven in exchangc us
pari of the purchase price of a similar item
anr! the gain or loss is taken into account in
dr.~er1llilling Ihe depreciation cost basis of tlte
new item.
lc) A loss results from the fuilure \0
maintain permissible insurance, except ns
otherwise pruvided in pHrilgraph 11l.a.[:l).
(e1) Compensalion for the use of the
properly was provided through use
allowilnces in lieu of depreciation in
nccordance with paragrilph 9.
(e] Gains and losses Drising from mass or
extraordinary sales, retirements. or olher
dispositions ~hall be considered on a cnse.
by.ca~e basis.
'b. Gains or losses of any nature arising
from the sale or exchange of property other
than the property covered in paragrnph n.
above shilll be excluded in computing awar&-
costs.
35. Public in!ormatiun sen'ice costs.
a. Public information service costs include
the cost associated'with pamphlets. news
releases, and other forms of inlormation
services. Sur.b costs are normally incurred to:
(1) inform or instrucl indh'iduals. groups. or
the general public.
(2) interest individuals or groups in
participating in a ser...ice program 01 the
Olgsnizalion.
(3) Disseminate Ihe results of sponsored
and nonsponsored activities.
b. Public information service costs are
allowable as direct cosls with the prior
a;:;pro\'al of thp. awarding agency. Such costs
are unallowable as indirect cosls.
37. Publication and printing costs.
a. publication cost~ include the cost~ of
printing (including the proces<es 'of
composition. plate-making. press work.
binding. and the end products produced by
s!lr.h processes). distribution. promotion.
mailing. and general handling.
b. If the~e costs i1rp. not identifiable wilh a
particular cost objective. they should be
allocated as indirect costs to all benefiling
activities of the organizntion.
c. Publir.ation anO printing cosls are
unuilowable AS direcl costs except with the
prior npproval of the awnrding agency.
d. The cost of page charges in journals is
addressed paragrilph 28.
30. Reorrongemenl.ond alteration costs.
Costs incurred for ordinury or normal
rearrangement and alteration 01 facilities nre
alluwable. Specinl a.rrangement ilnd
alteration costs incurred specifically for the
projecl are allowable with the prior approval
of the awarding IIgency.
39. Reconversion Cosls. Costs incurred In
the restoration or ~habllt18tion of the
organlushon's fDdJitiC1l to approximately the
J
A-122:9
same condition existing immediately prior to
commencement of Government awards. fair
wear and tear excepted. lire allowable.
40. Recruiting COsls. The following
recruiting costs are allowable: cost of "help
wanted" advertising. operating costs of an
emplo~'ment office. cost. of operating an
educational testing program. Iravel expenses
including lood and lodging of employees
while engaged in recruiting personnel. travel
costs 01 applicants for interviews for
prospective employment. and rC'loc:ation costS
incurred incident to rccruilmenl 01 new
employees (see pnrngrnph 41C). VV};ere the
organization uses employment agencies.
costs not in excess of stnndnrd commercial
rates lor 8uch 8ervices are allownble.
41. Relocation costs.
a. Relocation costs are cosls inciJentto the
permanent change of duly assignment (lor an
indefinite period or for a sloted period of not
less than 12 months) of an exi~ti01g employre
or upon recruitment of a new employee.
Relocalion costs nre allowable. subject to the
limitation described In paragraphs b. c, and d.
below. provided thnt:
(1) The move 18 for the benefit of the
employer.
(2) Reimbursemeot to the employee is in
accordance with an eslablished written
policy consistently followed by the employer.
(3) The reimbursement does not exceed the
employee's actual (or reasonably estimated)
expenses.
b. Allowable relocation costs for current
employees nre limited to the following:
(1) The costs of transportation of the
employee. membeT1i of his immediate fnmily
nnd his household. and personal effects to the
new location.
(2) The costs of finding a new home. such
as advance trips by employees and spouses
10 locale living quarters and temporary
lodging during the transi tion period. up to a
maximum period of 30 days. including
ndvance trip time.
(3) Closing cosls. such as brokerage. legal..
nnd appraisal fees, incident to the disposilion
of the employee's lormer borne. These costs,
together with tbose described in (4) below.
arc limited 108 per cent of the"'sales price of
the employee's form~ borne. '.
(4) The continuing cosls of ownership of
the vacant former borne after the settlement
or lease date of the emplo}'ee's new
permanent home, such as maintenance of
buildings and grounds (exclusive of fixil1$ up
expenses). utilities. taxes. and property
insurance.
(5) Other necessary and reasonable
expenses normally incident to reloc6 tion.
such as the costs of canceUins an unexpired
lease. disconnecting and reinstalling
household appliances. and purchasing
insurnnce against loss of or damages to
personal property. The cost of caDcellins an
unexpired lesse is limited to threa times the
monthly rentaL
c. AUowable relocation costs for new
employees are limited to thoae described in
[1) and (2) of paragraph b. above. When
relocalion cosls incurred incidenl to the
recruitment of new employees have been
allowed either ll.ll a direcl or iRdirecl cast and
the employee roaigns for reasons within biB
-lI
~ .
...._~
I
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 shore of the cost.
However the costs of travel to an overseas
location ~hall be considered travel costs in
accordance with paragraph 50 and not
relocation costs for the purpose of this
paragraph Ii dependents are not permitted at
the location for any reason nnd the cosls do
not include costs of transporling household
goods. .
d. The following cosls related to relocallOn
are unallowable:
(1) Fees and other costs associpled with
acquiring a new home.
(2) A loss on the sale of a former home.
(3) Continuing morlgflgc principal and
interest payments on a home being sold.
(4) Income taxes pnid by Gn employee
rela ted 10 reimbursed reloca tion cos Is.
42. Rental costs.
a. Subject to the limitations describerl in
paragraphs b, through d, of this paragraph.
rental costs are allowable to the extent that
the rates are reasonable in light of such
factors os: rental costs of comparable
property. if any: market condilions in the
area: alternatives ilvailable: .and the type. life
expectancy, condition. and value of the
propp.rty leased.
b. Rental costs under sale and leaseback
arrangements Rre allowable only up 10 Ihe
amountlhat would be allowed had the
organizotioncontinued 10 own the property.
c. Rental costs under less.than,Jength
leases are allowable only up to the amount
that would be allowed had title to the
property vesled in the organization. For thls
purpose, a less.than.arms.!ength lease is one
undp.r which one party to the lease agreement
is able to control or substantially infiuence
the actions of the other. Such leases include.
but are not limited to those between (i)
divisions of anorganizalion: Iii) orgonizations
under r.ommon conlrol through common
of;icers, directors. or members: and (iii) an
organization and a director. trustee. officer.
or key p.mployee of thp. organi;;ation or his
immediate family either directly or though
corporations. trusts. or similar arrangements
in which they hold a controlling interest.
d. Rental costs under leases which create a
material equity in the leased prop~rty are
allowable only up to the amount thut would
be allowed had the organization purr;hased
the property on the date the lease agreement
was executed: e.g.. depreciation or use
allowances. maintenance. taxes, insurance
but excluding interest expense and oUler
unallowable costs. For Ihis purpose. a
material equity in the properly exists if the
lease in noncancelable or is cancelable on~Y
upon the occurrence of some remote .
contingency and has one orll)ore of the
following characteristics:
(1) The organization has the right to
purchase the property for a price which at the
beginning of the lease appears 10 be
substantially less than the probable fair
market value at Ihe time it is permitted to
purchase the property (commonly called a
lease with a bargain purchase option):
(2) Title to the property passes to the
organiza tion at some time during or after the
lease perioe.:
(3) The term of the lease (initial 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: Le., the
period the property is expected to be
econor:lically usable by one or more users.
43 iloyolties alld other costs for use of
pOl "r ond copyrights.
a. ) ;yalties on a patent or cop~'Tight or
amortization of the cost of acquiring by
purchase a copyright, patent. or rights
thereto. necessary for the proper performance
of the award are allowable unless:
(1) The Government has a license or the
right to free use of the putenl or copyright.
(2) The patent or copyright has been
adjudicated 10 be invalid. or has been
administrativelv determined to be invalid.
(3) The palen't or copyright is considered 10
be unenforceable.
(4) The patent or copyright is expired.
b, Special care should be exercised in
determining reasonableness where the
royalties may have been arrived al as a result
of less then arm's length bargaining: e.g.:
(1) Royalties paid to persons, including
corporations. affiliated wilh the organizatio:1.
(2) Royalties paid to unaffilialed parties,
including corporations. under an agreement
entered into in contemplation that a
Government awerd would be made.
[3) Royalties paid under an agreement
entered into after an award is made to an
organization.
c. In allY case involving a patent or
copyright formerly owned by the
organizalion. the amount of royalty allowed
should not exceed the cost which would have
been allowed had the organization relaiOf~d
title thereto.
44. Severance pay.
a. Severance pay. also commonly referred
10 as dismissal wages. is a payment in
addition to re~ular salaries and wages, uy
organizations 10 workers whose employment
is being terminated. Costs of severance pay
are allowable only to the extentlhat in each
case. it is required by [i) la w, (ii) employcr-
e:nployee agreement. [iii) est"bJished policy
that con:;!itutes. in effecl. an implied
agreement on the organiz:alion's parI. or liv)
circ~m5:a:lces of t!:e particular employment.
b. Ccsts of severance p:Jyments are divided
into two categories as fo],cws:
(1) Actual normal trunover severance
payments shall be allocaled 10 all ar.livities:
0:. where the organization provides for a
re~erve for normal severanc'!s such melhod
will be accepla ble if the charge to current
operations is reasonable in lirht of payments
actual!y made for normal sev~rances over ~
representative pasl period. and if amounts
churg:ld are allocated to all activilies of the
organiza tion.
(2) Abnormal or mass severance PLlY is of
such a conjectural naiure that measurement
of costs by means of an accrual will nct
<;chieve equity to both parties. Thus. accruals
for this pu'pose are not allowable. However.
th'! Government reeognize~ i~s obligation to
partir:ipa te to the e>:lent of its fair share. in
<lny specific payment. Thus. allowability will
be considered on a case.by.case basis in Ihe
event ofoccurrenr.e.
45. Specia/i::ed ser-'ice facilities.
a. The costs of services provided by highly
-I
A-122:10
complex or specialized facilities operAted by
the organization, fiuch as electronic
computers and wind tunnels, are allowa ble
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. must be charged directly to
applicable awards bosed on actual usage of
the services on the basis of a schedule of
rates or e~tablished methodology that [i) does
not discriminate againsl federally supporled
Activities of the organization. including usage
by the organization for internal purposes, and
(iil is designed 10 recover only the aggregute
costs ort.he services. The costs of each
service sholl consist normally of both its
direct r:osts Hnd its allocable share of nil
indirer.l costs, Advance agreements pursuant
10 parugraph A.5. of Attuchment A are
particularly import ani in this situation.
c. Where Ihe cosls incurred for a service
Rre not material. they may be alloca led as
Indirect costs.
40. Taxes.
a. In general. taxes which the organizLllion
's required to pay and whi:;h are paid or
ocr:rued in accordunce with generally
accepted accounting principles. and
payments mode 10 local governments in lieu
of taxes which are commensurale with the
local government services received are
allowoble, except for (i) laxes from which
exemptiuns are available to Ihe organization
di:ectiv or which are availiJble 10 the
organi~ation based on an e:>-emption afforded
the Government and in the latter case when
the awarding sgency makes s\'ai!able the
n~ce~sary exem;Jtion certificates. (ii) special
aS6es:;men!~ on land which represent capital
improvements, and [iii) Federal income taxes.
b. Any refund of I~.xes. and <Jny prtymenl to
the organization of interest thereon, which
were allowed as award costs, wnl be
r:rediled either as a cosl reduction or cush
refund, as appropriote, \0 the Govp.rnll1ent.
47. Terminution costs. Termin"ti~)I1 of
awards generally give rislt- 10 the i1'lcur~~ilcc
uf cost~. or the neen for speciallrentment of
cosls. whir:h would not have arisen had Ihe
award not been terminaled. Co~t principles
covering these items are set forth below.
They are to be usr:d in conjunction with the
'other provisio:ls of this Circulnr in
termination situations.
R. Cammon itellls. The cust of items
reasanallly usable on the organization's other
work sh;JlI not be allowable unkss the
orgar:ization submits evidence Ihat il would
not retain such ilems at cost without
sllslnining a loss. In deciding whether such
items are reasonnbly usable on other work of
the organization, the awarJil:g agency shouid
consider the organization's plans and urders
for current and scheduled activity.
Contemporaneous purchases of common
ilems by the organization shall be r~gilrded
as evidence lhat sllch iterr,s are reusonnbly
usable on the o~ganization's other work. Any
ncceplance of common items liS allocable to
the terminilled portion of the aW<Jrd shall be
limited \0 the extcnl Ih"l the quantiti"s of
.
l
, .
I \
Office of Management and Budget Circular A-122 (6/27/80)
such items on hand. in transit. and on order
an! in exce3S of the reasonable quantitative
requirements of othr.r work.
b. CosLs continuing after termination. l! in
a panicular case. despite all reasonable
efforts by the organization. cennin costs
cannot be discontinued immediately after the
effective date oC termination. such costs an!
generally allowable within the limitations set
forth i.:1 this CircullU. except that any such
cosls continuing aIter termination due to the
negligent or willful failure oC the organization
to discontinue such costs shall be
unallowable. .
e. Loss of L'seful volue. Loss of useCul value
of srecialtooling. mochinery and equipment
wr,;!:h was not charged to the aWlUd as a
C<l,.-,ial expenditure is generally allowable if.
i: , Such special tooling, mac:.incry. or
eq _ :pment is not reasonably capable of use in
tL:. <jther work oC the organization.
1::1 The interest of the Govemme:lt is
r~r .Jr.tr.d by transfer of tiUe or I.y other
n1(':I:1.S deemed appropriate by the awarding
a 'J' ncy;
'.Ii. Rentol cosLs, Rental costs under
u;-:"xpired leases are generally allowable
Yo :'cre clearly shown to have been
rl...sonably necessary Cor the performance oC
I!:" terminated award less the residual value
0:- such leases, if (i) the amou.,t of such rental
ci:.imr.d does not exceed the reasonable use
vabe or the property leased for the period oC
tf.,; aW:ilrd and such further ~riod as may be
rp..:.;IJl:,:ble. and (ii) the organization makes
all reasonable effons to termina Ie. assign.
seltle, or o!berwise reduce the cost of such
lease. There also mav be included !be cost of
altera tions of such le'ased property, provided
such al:erations were necessary for the
performance oC the award. and of ree.sonable
restor;;tion required by the provisions oC the
leose.
e. Settlement expense:r. SettJememt
expenses including the following al?
gen!'rally allowable:
(1) Accounting. legaL clerical, and similliI
costs reasonably necClssar)' for.
(a) The preparation and presentation to
awarding agency of setUement claims and
supponing data wiili respect to the
terminated portion of the award. UI1!ess the
termination is for default. (See paragraph 4.a
of Atlachmcntl. OMB Circular No. A-l1O;
and
[b) The termination aDd settlement oC
suba wards.
(2) Reasonable cosu for the storage.
transporta tiOf'. protection. and disposition of
property provided by the Government or
acquired or produced for the aware:: except
when grantees are reimbursed for disposaL,
at a predetermined amOl4Dt in accordance
with Attachment N of OMB Clrt;uiar A-l10.
(3) Indirect costs related to "daries and
wages inCllI'n:d as settlement expense1l in
s~bparagraphs (1) snd (2) of thu paragraph.
Normally, such indirect costs shall be limited
10 fringe benefits. occupancy cosL and
immediate supervision.
f. Claims /L'lder subowords. Claims under
6ubawards, including the allocable portion of
claims which are common to the award. and
to other work of the organiza lion are
generally allowable. An appropriate share of
the organization's indirect expense may be
allocated to the amount of setUemenls with
subcontractor I subgranteel; provided that the
amount allocated is oilierwise consistent
with the basic guidelines contained in
Attachment A. The indirect expense '0
allocated shall exclude the same and similar
costs claimed directly or indirectly al
settlement expenses.
48. Training and educotion costs.
&. Costs oC preparation and maintenance oC
a program oC instruction including but Dot
limited to on-the-job. classroom. and
apprenticeship training. designed to increase
the vocational effectiveneu of employee~
including training materials. textbooO,
salaries or wages oC trainees (excluding
overtime compensation which might arise
thereCrom). and (i) salaries oC ilie di.rector oC
training and staff when ilie training program
is conducll:d by ilie organization: or (Ii)
tuition and fees when the training is in an
instit'.:tion not operated by the organization.
are allowable.
b. Costs oC part-Ume education. at an
undergraduate or postgraduate college leveL
including iliat provided at ilie organization'l
own facilities. an! allowable only when the
course or degree pur:rued is relative to the
field in which the employee il now working
or may reasonably be expected to work. and
are limited to:
(1) Training material.a.
(2) Textbooks.
'(3) Fees charges by the IKincation,i1
institution.
(4) Tuition charge1i by the educational
iMtitution. or in lieu oC tuition. instructors'
salaries and the related share of indirect
costs oC ilie educational iMtitution to the
extent that ilie sum thereof is not in excess of
the tuition which would have ben paid to the
participating educational institution.
15) Saiaries and related costs oC instructors
who are employees oC ilia org.anizatioa.
(6) Straight-time compllnSlltion oC each
employee for time spent attending c1assM
during wcrking hours Dot in excess of 156
bours per year and only to the exlent that
circumstance do not permit the operation 01
classes or a ttendance at classes alter regular
working hours: otherwise such compensation
is unallowable.
e. C.:>sts of tuition. fees. trainbg materials.
and textbooks (but not subsistence. saliU)'. or
any other emoluments) in connection with
fulJ-time education. including that provided at
!be Drganization's own facilities. at a
postgraduate (but not undergraduate) college
leveL are allcwable onlv when the coune or
degree pursued is relat;d to the field in which
the employee is now working or may
reB!onably be expected 10 work. and only
where the costs receive the prior approval of
the awarding agency. Such cos~ are limited
to the costs attributable to 8 total period not
10 excee:! one school year for each employee
so trained. In unusual cases the period may
be extended.
d. Costs of attendance of up to 16 week.,
per employee per year at specialized
programs specifically de~igned to enhance
the effectiveness of executives or ma=gers
or to prepare employees for sucb positions
are allowable. Such costs include enrollment
-I
A-122:11
fees. training materials. textbooks and
related charges, employees' lalarie&..
subsistence, and traveL Costs allowable
under this paragraph do not include thOfH! for
COllneS iliat are part of a degree-<>riented
curricwum. which are allowable only to the
extent set forth in b. and e. above.
e. Maintenance expense. and norma.l
depreciation or fair rentaL on facilities
owned or leased by the organ.iz.ation for
training pWJloses are allowable to the extent
sr.t forth in paragraphs 9, 22. and 42-
f. C:Jnlributions or donations 10
educational or training institutions, including
ll:e donation oC Cacilities or other propr.Mies,
and 8cholal1lhips or fellowships. are
unallowable.
g. Training and education coslll in excess oj
those otherwise allowable under paragraphs
...b. and c, of this paragraph may be allowed
wilh prior approval orthe a warding agency.
To be considered for approval. tha
organization must demonstrate thai such
cosl~ are consistenUy incurred pursuant to aD
eSlublished training and educa:ion program,
and l.~al the course or degree pursued is
rei a tive to the field in which ilie employee is
now working or may reasonllbly be expected
10 work
49. Transportation costs. TransponaUon
Custs include freighL express. cartage. and
postage charges relating ei!ber to goods
p\lrchased. in process. or delivered. These.
costs are allowable. When such costs can
readily be identified with the ilellUl involved.
they may be directly charged as
transportation costs or added to the cost of
such items (see parag:raph 23). Where
identification wiili the materials received
canno: readily be made. tranBportatioD costs
may be charged to the appropriate indirect
cost accounts if the organization follows a
consistenL equitable procedure in this
respe'~t.
50. Travel cosLs,
a. Travel costa are the expenses for
transportation. lodging. subfiistence. and
related items incurred by employees who are
in tra vel status on official business of the
organizRtion. Travel costs are allowable
subject 10 paragraphs b. thro1,lgb e, below.
when they are ~ectly attributaole to specific
work under an award or.are incurred in the
normal course of administration of ilia
orga niza lion.
b. Such cosls may be charged on an actual
basis, on a per diem or mileage basis in lieu
of actual costs incurred. or on a combination
of the tWo, proTided the method UBed resullll
in charges consistent with those normally
allowed by the organization in its regular
opera tions.
e. The difCerence in cost between first-class
air acco=odations and less than fuot-clas&
air accommodations is unallowable excepl
....hen less than fil1lt-class air
accoD"uDodations B..--e not reasonably
available to meet necessary mission
requirements, such as whe~ less than first.
class accommodations would (i) require
circuitous routing. (ii) require travel during
unreasonable hours. (iii) greatly increase ilie
dwation' of the Oight, (iv) result in additional
costs \':hich would offset the transportation
s3vir:gs. or {vI offer Ilccommodo tio'ns which
"
t
..
,
,
--1--
)fflce of Management and Budget Circular A-122 (6/27/80)
,re not reasonably adequate for the medical
~CU of the lI11vele1'.
d; Necessary and roawnal>>e costs DC
amily movements and penonnel movernentJ
)C a special or maBS nature are allowable.
mrsuant to paragreplul 40 and 41, subject to
,!location on the basis of work or time period
Jcr.elited when appropriate. A9vance
'greemcnts are particularly impo:-1lU1L
e. Direct charges for foreign travel costs are
dlowable only wben the travel has received
xior approval of the awarding agcncy. E.ach
ocparate foreign trip must ~ approved. For
curposes of this provision. Coreign travol is
~eCilled as any travel ou Ulide of Canada and
:,e United States and ils territories and
Jossessions. However, Cor an organiza tion
ocated in foreign countries, the lenn "Coreign
ravel" means travel ouUlide that country.
Circular.No, A-l22}
.\ltachment C
:.ionprofit Or-gan.iz.ations not Subject to this
c:rcu l.ar
.\erospace Corporation. EI Segundo,
California
:\1"3onne Universities Association. Chicago,
Illinois
Associated Universities', incorporated.
Washington. D.C.
"'-"ocialed Univenities Cor Research and
Astronomy, Tucson. luizona
Atomic Casualty Commission. Wasb.i.ngton.
D.C.
3attellc Memoriallnstitute, Headquartered in
Columbus, Ohio
3rooldlaven National Laboratory, Upton.
New York
Center for f.nergy and Environmental
Research [CEER), (University of Puerto
Rico)
Commonwealth of Puerto Rico. Charles Sta:k
Draper Laboratory, incorporated
Cambridge. Massachusetts. Comparative
Animal Research Laboratol)' (CARL)
[lJnivenily of Tennessee). Oakridge,
TerJlc~see
.:.:wironrnentallnstitute of Michigan. Ann
j\.r~or. Michigan
:-lar.ford Environmental Health Foundation.
Richland. Washingion
L'T R~search Institute, Chicago. minois
in~lilute ior Deiense Analysis. Arlington.
Vi1"3inia
bstitule of Gas Technology, Chicago. Illinois
Midw!!st Research Institute. Headquartered
in Kunsas City, Missouri
Mitre Corporation. Bediord, Massachusetts
~.lon\ana f.nerg)' Research and Development
Institute. lnc~ (MERDf), Butte. Montana
>;a lional Radiological Astronomj'
Observatory, Green Bank. West Virginia
Oakridge A560ciated Universities, Oakri~.
Tennessee
?roject Management Corporntion, Oakrid;<e..
Tennessea -
F.and Corporation. Santa Monica. California
Research Triangle bstitute. Research
Triangle Park. North Carolina
Riverside Research Institute, New York. New
York
Sandia Corporation. Albuquerque. New
\~OY;i'n
Southern Research Institute, B!rminghB.lD.,
Alabama
Southwest Research lrntitute. San Antonio.
Tex.as
SRlintematlonal. Menlo Parl:. CallIOmlll
S)'T'acuse RBaearch Ccrporlltion. S)T8.Clae,
New York
Universities Research Anociation.
Incorporated (National Acceleration Lab).
Argonne. nlinois
Universities Corporation Cor Atmospheric
Research. Boulder, Colorado
Nonprofitlnsurance Companies such as Blue
Cross and Blue Shield Organizations
Other nonprofit organizations as negotiated
with awarding agencies.
[Fll Doc.. 8G-= f1I.d '-7-aD: &:4S am)
~ COOE ~1'0-<l1"'"
Editorial Corrections to
OMS A-122
OFFICE OF MANAGEMENT AND
BUDGET
Circular A-122, "Cost Principles lor
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
nonprofi t organiza tions, (45 FR 46022,
July 8. 1980).
FOR FURTHER INFORMATION CONTACT:
Palmer Marcantonio, Financial
J\lanagement Branch, Office of
Managemenl and Budget. Washington,
D.C. 20503. (202) 395--4773.
. Page 46022, column 2 the second
Paragraph 1, change Paragraph 5
"Compensation for Personnel Services"
10 Paragraph 6.
. Page 46022, column 2 tbe 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 Paragrllph 24.
. Paragraph 6. change Paragraph 27,
"Organiz.ation Costs" to Paragraph.26.
. Paragraph 7. change' Paragraph 30
"Page charges in Professtional Journals"
to Paragraph 28.
. Paragraph 8. change paragraph 37
"Public lnformalion Service Costs" to
Parngraph 36.
. Paragraph 9. change Paragraph 43
"Rental Costs" to Paragraph 42.
. Paragraph 9a: in the fourth line. add
"up" between the words "only" and
"to": in the sixlh line change "they" 10
"it" .
. Parngraph 10. change Paragraph 51
"Tee",.,.l rn~I~" In r:J,:J['~"nn r,n.
-01 ,-
A-122:12
. Page 46024. column 3 Paragraph
4(a)(2) after "benefits received" add ";
or".
. Poge 46025. column 1 Paragroph n3.
change the reference "Paragraph 21 of
Allachment B" to "Paragraph 19 of
Attachment n."
. Page 46026. co{umn 1 Paragraph
4a.iii. in the sixlh line, change "direct
cosl" 10 "direct costs,"
. Page 46026. column 2 Paragrnph
Ele. change "e'stablishment of a rate" to
"eslablishment of a final rate."
. Page 46026. column 3 Paragruph
E2b. in the third line add the following
aftcr "a Federal agency shall"-"submit
its initial indirecl cost proposal
immediatel"."
. Page 4{x'127. 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' compensa lion."
. Page 46030, .column 3, parograph
24b.. the sixth line, change "allowable"
to "allowability",
Doniel F. Maon.
Budget and Management Officer.
IFR Doc. 81-8073 Flied :l-llHll: &:45 om)
BILLING WOE ~'10-<l1-M
Circular A-122, "Cost Principles for
Nonprofit Organizations"
Correc/ian
In FR Doc. 81-20270, appearing at
page 46022 in the issue of Tuesday, July
O. 1900. the following changes should be
made:
1. On page 46024. column three. tbe
second sentence in paragraph "'A.5.b.
should read. "SpecificSllly. 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 to
Federal awards Tor services rendered
whenever the facilities or other
resources used in providing such
services have been financed directly, in
whole or in parI. by Federal funds."
2. On page 46024.. column three, the
second complete sentence in paragraph
A.B, should read. "This is particularly
true in connection ",-1 th organiza tions
that receive a preponderance of their
support from Federal agencies."
3. On page 46025. column one,
paragraph B.2, should read. "2. Any
direct cost of a minor amount may be
trea ted as an indirect cost for reasons of
prncticality where the accounting
trentment for such cost is consistently
nrrJ!,'d 10 nil final r:ost ohier:tives."
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Office of Management and Budget Circular A-122 (6/27/80)
4. On page 46025, column oce,
paragraph B.4.f. should read, "f.
Administration of group benefits on
behalf of members or clients including
life and hospital 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 tion
of indirect costs is the period in which
such costs are incurred and accl,!mulated
for alloca tion to work performed in tho t
period."
O. On page 4G02G, column one, the
second sentence in paragraph D.3.d
should rend, "The cosls in the common
pool shall then be distributed to
individual awards included in that
function by use of a single indirect cost
rate."
7. On page46020, column one, the firsl
sentence in puragraph D.3.e. should
read, "The distribution based used in
computing the indirect cost rate for each
function may be total direct costs
(excluding capital expenditures and
other distorting items such as major
subcontracts and subgrants), direct
!:aluries and wages, or o.ther base which
results in an equitable distribution,"
8. 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 administration and
general expenses. These organizations'
generally separate their costs into thrp.e
basic cRte~orjes:' . ',"
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
loca lion of the work. the level of
administrativp. support required, th~
nature of the facilities or other resources
employed. the scientific disciplines or
technical skills involved. the
organizational arrangements used, or
any combination thereof."
10. On page 46026, column three,
paragraph E.2.i. should read, "i. To the
extenlthal 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 limely manner."
11. On page 46030, column one, the
introductory text of paragra'ph 16.b. and
paragraph 16.b.(1) should read, "b. The
cosls of idle facilities are unallowable
except to the exlentthat: (1) They are
necessary to meet Ductuations 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
antir:ipaled to be necessary or WIlS
originally reasonable and is not subject
to reduction or elimination by subletting,
renting, or sale, 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
supporled by evidence of bonR fide
services available or rendered."
II/LUNG CODE 1SC!;-{)1-N
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A.122:13
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