AGREEMENT FUNDED UNDER THE CLEARWATER COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM (4)
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AGREEMENT FUNDED UNDER
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THE CLEARWATER COMMUNITY DEVELOPMENT
BLOCK GRANT PROGRAM
THIS AGREEMENT 1S 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 ERVIN'S ALL AMERICAN YOUTH CLUB,
INC., as further identified 1n 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 Planning & Urban Development Department, hereinafter called
the "Department", will act in behalf of the City in conducting the Program,
and
liTHEREAS, the PSA provides a program as identified 1n 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 Ai 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, 1n 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 1,1988, and
terminate on September 30, 1989, 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 ('F services
under this contract shall be the Community Development Manager and the PSA's
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serVices shall be carried out under the superViSlon of the Agent as identified
in Appendix A.
4. The PSA shall not exceed its budgeted amount and shall use the funds
ln 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 17 hereof.
Any funds which the
Department determines were not properly expended shall be re funded 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 Append ix H, or the appropriate successor documents of these documents.
The 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-II0,
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
ln 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 Ci ty shall not be res pons ib Ie 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
as provided below.
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Program Income funds shall be retained by the PSA so long as the
activities that will be undertaken with the program Income are the specific
activities that meet the provisions of this agreement.
These funds shall be
adjusted by the City according to the principles described In paragraphs
(b)(2)(i) and (ii) of Section 570.504 which states that:
(1) Program income in the form of repayments to, or interest earned on a
revolving fund as defined In Section 570.500(b) shall be substantially
disbursed from the fund before additional cash withdrawals are made from the
u.S. Treasury for the same activity.
(This rule does not prevent a lump sum
disbursement to finance the rehabilitation of privately owned properties as
provided for In Section 570.513.)
(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 Communi ty Deve lopment Funds.
"Property" as
used In this Paragraph shall mean nonexpendable tangible property valued at
$200 or more with a remaining life expectancy of one year or more.
The PSA
shall retain custody of property acquired wi th federal funds so long as the
property is used for the purposes descr ibed in Append ix 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 immediately to the Department.
Thirty
days prior to the end of the grant year or immediately upon termination of
this agreement, the PSA shall submit In a Property Report a physical inventory
of all property purchased wi th Communi ty Deve lopment 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 recipient; or
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Disposed of
be i ng
.1
1n
(2)
that
results
the
recipient's
1n
a manner
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 1S not
required after the period of time specified in paragraph (b)(8)(i) of Section
570.503.10.
12. Nothing 1n this agreement shall be construed to permit invasion of
the pr1vacy 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 1n such a way as
to invade individual
pr1vacy and client
relationships, unless Florida law pertaining to public records requ1res
disclosure of said information.
13. The PSA shall obtain pr10r 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 1n the implementation and
maintenance of an evaluation system to continually monitor the project.
This
shall include, but not be limited to, periodic submission of data reports
which will be used by the Department for inclusion 1n the Annual Grantee
Performance
periodic
Repor t,
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 1n accordance with the Standards of Grantee Financial Management System
as set forth in OMB Circular A-11G or the appropriate successor document and
1n 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.
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
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records shall be available for audit, inspection or copy~ng 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 pr~or written approval of the City.
Such records shall include financial records, audits, supporting documents,
statistical reports and client files.
PSA will comply with such additional
requirements as to maintenance of records as the City may request in writing.
In the event the PSA cannot continue to be responsible for maintenance of the
records, then the City shall be so notified ~n 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 resul t ing
from
.. .
~nJur~es
or damages
sus tained by
any
persons
or
property resulting ~n whole or ~n part from the negligent performance or
omission of any employee, agent or representative of the PSA.
18. The PSA shall not ass~gn any interest ~n this Agreement without the
prior written consent of the City.
19. The city may suspend, withhold, or terminate payment of the project,
~n whole or ~n part, for cause or conven~ence.
Cause shall included the
following:
a. Ineffective or improper use of project funds.
b. Failure to comply with any term or condition hereunder.
c. Refusal to accept conditions imposed by HUD,
d. Submittal of reports which are incorrect or incomplete ~n any
material respect.
e. If carrying out this Agreement is rendered impossible or
infeasible for any reason including changes in law or the
unavailability of HUD funds necessary for continuation.
f. 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 ~n 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
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with priority to those residents who reside ~n 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
~ncome.
21. No person with responsibilities ~n the operation of the project will
discriminate with respect to any project participant because of race, color,
national or~g~n, 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 ~n part with Community Development
Funds because of race, color, national origin or sex, as set forth ~n Other
Program Requirements in Appendix D, (CFR 570.601).
22. The PSA will establish safeguards to prohibit employees from us~ng
their positions for a purpose that ~s or g~ves the appearance of being
motivated by a desire for private ga~n 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 ~n the area of its operation, and will, ~n fact,
affirmatively seek additional assistance and support from other sources for
increasing services where needs demand such increase.
The PSA wi 11 not use
these funds for publicity or propaganda purposes designed to support or defeat
legislation pending before federal, state or local governments.
23. The PSA shall comply with the requirements of Section 3 of the
Housing and Urban Development Act of 1968, as amended, and the HUD regulations
issued pursuant thereto, attached hereto as Appendix E.
24. The PSA will comply with Equal Employment Opportunities Executive
Order 11246, as amended, attached hereto as Appendix F.
25. 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 Ac t;
Historic Preservation Requirements of P.L. 89-656
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Archeological and Historic Preservation Act of 1974;
Executive Order 11593;
Architectural Barriers Act of 1968;
Hatch Ac t'
Federal Water Pollution Control Act:
Federal Labor Standards prov1s1ons and the Davis-,Bacon Act;
The Civil Rights Act of 1964;
National Flood Insurance Program;
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.
ERVIN'S ALL AMERICAN YOUTH CLUB, INC.
By
w~~~
Pres ide-n-~-
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secret~ . ...
CITY OF CLEARWATER, FLOR:tDK.-
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City Manager
Countersigned.
By
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ATTEST:
Approved as to form & correctness:
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~_~.i3A..~
o /,;;--:- Ci-fy C_1_~_rk~._,_:
~o~
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Agency:
Ervin's Youth Club
Year:
1988 - 1989
Appendix A
Identification of Agency and Specific Services to be Provided
Agency
Name:
Ervin's All American Youth Club, Inc.
Legal Classification: A non-profit corporation organized and existing under
the laws of the State of Florida.
Principal Office :
1250 Holt Avenue in the City of Clearwater, Florida,
34615
Mailing Address:
P.O. Box 815
Clearwater. Florida 34617
Agent:
Ervin A. Harris, Executive Director
813-443-2061
Program of Agency
Youth club, primarily serving minority youths
neighborhood. which provides self-development and
athletics, tutoring, motivational counseling, and
Parental involvement is encouraged.
in the North Greenwood
self-awareness training,
related youth activities.
Specific services to be provided under this Agreement
I. Operating Expenses
Ervin's All American Youth Club will continue general operation and
administration of the youth activities as noted above.
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General support of $10.800
including office equipment
activities.
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Agency: Ervin's Youth Club
Year: 1988 - 1989
Appendix B
Pro;ect Award
will be provided for normal operational expenses
purchases for the Ervin's Youth Club youth
TOTAL
$10,800.00
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APPENDIX C
METHOD OF PAYMENT
All payments shall be on a reimbursement basis only.
All requests for reimbursement shall be supported by proper invoices,
payroll~, checks, receipts and other documentation as required.
Any program income shall be submitted to the CITY through the DEPARTMENT at
least Quarterly. 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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SUbpZlrt K-0ther ProorZlm
Requirement.
I 570.&00 General
(u) Section 104(b) tr the Act provides
lhulan)' granl under ~ection lOG of the
Act sholl be rr. ,c' nly if the gronlee
certilies 10 the slltisfoclion 01 the
Secrela'r)'. among other things. thol the
grRnl "wilf lie. conducted ond
administered in confonnity wilh Pub. L
M-352 ond Pub. L. 90-2&1," ond. further,
tholthe grantee "will comply with lhe
olher provisions of this tiile and with
other applicable laws." SectioD 104(d)(1)
01 the Act requires thai the Secretary
d~lermine with respect to grants made
pursuant 10 section l00[b) (Entitlement
Granls) Bnd 106(d)(2)(B) (HUD-
Administered Small Cities Granls), at
least on Bn annual basis. among other
thing!, "whether the grantee has carried
out Iits] certifications in compliance
with the requirements and the primary
objectives of this title Bnd with other
applicable laws. . . ,'. Certain other
statutes are expressly made applicable
\0 Activities assisted under the Act by
Ihe Act ilself. while other laws not
referred 10 in the Act IDay be applicable
to such activities by their OY>'D lenns.
CerIa in statutes or Executive Orders
which IDay ue applicnble to activities
assisled under the Acl by their OY>'D
terms are administered or enforced by
guvernmental departmenu or agencies
other than the Secretary or the
DepartmenL This Subpart K enumerates
laws which the Secretary hiD treat as
applicable to grants made under section
106 of the Act. other than grants to
APPENDIX D
OTJER PROGR&~ REQUIRE~lliNTS
Slales made pursuanlto section lOG(d)
ollhe Act. lor purposes of the
delenninotionB described above to be
mllde by the Secrelary under sectiun
104(dJll) of the Act. including stotules
expressly made opplicable by the Act
and certain other !latutes and Executive
Orders for which the Secretary has
enforcement respon~ibility. The Ilb5ence
of mention herein of ony other statute
lor which the Secretory docs not ha ve
direct enforcement responsibility is nol
intended to be laken as 80 indication
that. in the Secretory's opinion, such
slatule or Executive Order Is not
applicable to activitics ossi8\ed under
the Acl. For lows which the Secretory
will treat as opplicable to gronls made
to Slates under section 100(d) of the Act
for purposes of the dctennination
required to be mede by the Secrelery
purauontlo !eclion 104[d)(2) of Ihe Act,
see ~ 570.496.
(b) This Subpartolso sets forth certoin
additional program requirements which
Ihe Secretary has determined lo be
applicable 10 grents provided under the
Acl as 8 mailer of administrative
discretion.
(c) in addition to grants made
pursuant 10 section 100[b) and
l00[d)(2)(B) of tbe Act (Subparts 0 and F
of this Part, respectiyely). the
reouirementa of Ihis Subpart K are
applicable 10 grantsmaoe pursuanlto
sections 10i and 119 of the Acl
(Subparts E and G. respectively).
~ 570.601 Pub. L 88-352 and Pub. L w--
26<; Executive Order 1106~
Section 104(b) of the Act provides thai
any grant under section 106 of the Act
shall be made only if the gran lee
ce'rtifies to the satisfaction of the
Secretary that the grant "will be
conducled and administered in
conformily willi Pub. L 88-352 and Pub.
L 90-284." Similarly. sectioD 107
provides thet no grant IDa)' be made
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under that ,ection (Secretary',
Discretionary Fund) or seclion 11Q
(UDAC) withoul satislactory assurance!
lo'the same effecl.
(a) "Pub. L e&-352" refer. \0 Tille VI
01 the Civil RlBhte Act of lW4 (<\2 U.S.C.
2000d' el ,eq.). which pro\ides that no
person 10 the United Stote! shall on the
ground of race, color, or DO tional origin.
be excluded Irom participa tion In, be
denied the benefit! Df. or be subjected 10
discriminotion under any progrom or
activity receh'1og Federal finonelal
o5sislance. Section 502 of the Civil
Righls Act 011~ directs each Federal
departmenl and agency empowered to
extend Fcdernl financial Bssistance to
any progrom or oclivity by woy of granl
10 effectuate the loregoing prohibition
by issuing rules. rCg'ulalion!. or orders of
generllloppllcobilily which shell be
comistent with achievement of the
" slatule authoritint> the financial
assistance. HUO regula Ilona
implementing the requirements of Tille
VI with respeclto HUD progrllm~ are
conlained in 24 CFR Pert 1.
(b) "Pub. L 90-~" relen 10 Tille VIII
of the Civil Rights Acl of 1968 [42 U.S.C.
3GOl ~I &eq.), popularly known as the
Fair Housing Act. which provide5 that it
is the policy of the Uni ted Sta les to
provide. wiUJin constitutional
limitatiOn!. for feir housing throughout
the United States and prohibits any
person [rom discriminaling in the sale or
rental of housU18, the financing of
housing. or the provision of brokerage
5ervicef.. 10cluding in any wey making
unavailable or denying a dwelling to
any.person. because of race. color.
religion, sex. or national origin. Title
VIlllurther reouires the Secretary to
administer the'programs and activities
relating to housing and urban
developmentln Il manner affirmatively
to further the purpose! of Title VIII.
Pursuant to this atatutory direction. the
Secrelary requires that grantees
adJninister ell programs and activities
)
related to housing /lnd community
developrnL?nt in a manner to
af!irmntively lurther Illir housing,
(c) Executive Order 11U03. as
amended by Executive Order 12259.
directs the Deportment to toke all action
necessury and appropriate to prevent
discriminalion because 01 race. color.
religion [creed). Bex. or national origin.
in Ihe sule, leasing, renlal. or other
disposition 01 residentiul property and
related focilitic.s (including land to ue
developed lor residential use). or in the
use or occupancy thereof. if such
properly Ilnd related locilities ore.
umong other things, provided in whole
or in port with Ihe uid of loans,
ild\'onces, grants, or contributions
f1Rrce\i.to be made by the Federal
Covernmenl. HUD rcgulations
implementing Executive Order 11003 are
contained in 24 crR Part 107.
~ 570.602 Secllon 109 olth. Acl.
(a) Section 109 01 the Act requires that
no person in the United Slates shall on
lhe ground of race. color. national origin
or sex. be excluded Irom participation
in. be denied the benefits of. or be
subjected to discrimination under. any
program or activity lunded in whole or
in part with community development
lunds made available pursuant to lhe
Act. For purposes 01 this section
"program or activit"" is defined as any
function conducted by an identifiable
administrative unit olthe recipient. or
by any unit of governme~t, ~ubrecipient.
or pri','a Ie conlractor receiving
cOr;1lnuni\y developmenl funds or loans
Irom the recipient. "Funded in whole or
in part with community dev'elC'pment
funds" means Ihat community
developmcnt funds in a:1Y amount in the
form of granls or proceeds Irom HUD '
guaranteed loans have bee~\.translcrred
by the recipient or B subrecipient 10 an
identifiable adminiSlrative unit and
disbursed in a program ~r activity.
(b) Specific discriminatory actions
prahibited and correc/fl'e ac/ions.
(1) A recipienl may not. under any
program or acti\'ity to which the
regulution~ olthi~ Pari may apply
directl)' or throufh contractual or olher
!lrrangpmcn\s, on the ground 01 ruce.
color. nutiol\al origin. or sex:
(i) Deny allY facilities. Bcrvicl:s.
linanciul /lid or other benefils provided
under the progriJm or aclivity.
(ii) Providc any lilcililies. fiervices.
financial /lid or olher benclits which are
different. or ore provided in a different
form Irom Ihul provided to others under
the program or uctivity.
(iii) Subject 10 segregated or sepnrate
trealmenl in any lucilit)' in, or in OilY
milttcr of process relal<<;d 10 receipl 01
any service or bendil under the progrum
or uctivity.
(i,,) Restrict in llny wny access to. or
in the cnjoyment 01 nny advantage or
privilege enjoyed by others in
connection with facilitics. services.
linancial aid or olhcr benefits under the
program or activity.
Iv) Treat an individual diffcrently
Irom others in determining whether lhe
individual sa tisfies any admission,
enrollment. eligibility, membership. or
other requirement or condition which
the individual must meet in order to be
provided any facilities, Bervices or other
benefit provided under the program or
ilctivi:y.
(vi) Den)' an opportunity to participate
in a progrcm or activity as an employee,
(2) A recipient may not utilize criteria
or methods of administration which
have the effect of ~ub;ecting individuals
to discrimina tion on the basis 01 race.
color. noUonal origin, or sex, or have the'
effect of defeating or substantially
impairing accomplishment of the
oujeclives olthe program or activily
with respect to individuals 01 a
pLlrticular race. color. nalional origin. or
sex..
(3) A recipient. in determining the site
or location of housing or facilities
provided in whole or in pari with funds
under tbis part. may not make selections
of such site or location which hove the
effec:t of excluding individuals from,
denying them the benefits of. or ,
subjecting them 10 discrimination on the
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gruund 01 race, Clllor. nalional origin, or
Bex: or which tHlve the purpo~e or effect
of dcleotinR or substantially impairing
the ccc:umplishmcn\ ollbe oujectives of
the Acl /lnd olthis 8cClion.
(4Jli) In cdminislering 8 program or
nctivity funded in wbole or in pari with
CDnc lunds rcgarding which the
recipient has previously discriminated
cgaiml persons on lhe ground 01 race,
color. national origin or sex. tbe
recipienl musttuke affirmative action to
ovcrcome Ihe effccts of prior
discrimina tion.
(ii) E,'en in the absence of such prior
discrimination, a recipient in
iJdministering c program or activity
funded in whole or in part with CDI3C
lunds should tuke affirmntive Bction to
overcomc the effects of conditions
which would otherwise result in limiting
participatiun by persons 010 parlicular
race. color, nalional origin or sex.
Where prcvious discriminatory priJclice
or uSilge lends. on the ground 01 race.
color. national origin or sex, to exclude
individuals from participation in, to
deny them the benefits of. or to subject
them to discrimination under any
program or aclivity to which this part
applies. the recipient has an oblig1:lion
to take reasonable action to remove or
overcome the consequences of the prior
discriminatory prl:lctice or usage. end \0
accomplish the purpose of the Ac\.
(iii) A recipient 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
specific group 01 persons within its
jurisdiction, 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 recipient from maintaining
or constructing separate living facilities
or rest room lacilities lor the different
sexes. Furlhermore. selectivity on the
basis of sex is not prohibited when
institutional or cllstodial services can
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APPENDIX E
SECTION 3 CLAUSE
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TilE: FOLLO\HNG SECTION 3 CLAUSE SHALL I!E INCLUDED IN ALL CONTRACTS FOR 'WORK IN
CONNECTION IHTH 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 Dcpan:ment 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 U.S.C. l70u. Section 3 requires that to the greatest extent
feasible opportunities for training and employment be given lO\o'er income
residents of the project area and contracts for \o'ork in connection ~ith the
project be a~arded 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 ~ill comply ~ith the provisions of said Section 3
and the regulations issued pursuant thereto by the Secretary of Ilousing and
Urban Development set forth in 24 CFR, and all applicable rules and orders of
the Department issued therelIDder prior to the execution of thia contract. The
parties to this contract certify and agree that they are under no contractural
o~ other disability ~hich ~ould 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 1n conspicuous places available to employees
and applicants for employment ort raining.
D. The contractor ~ill 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 i6
in violation of regulations issued by the Secretary of Housing and Urban
Development, 24 CFR. The contractor ~ill not subcontract ~ith any subcontractor
~here it has notice or kno~ledge that the latter has been found in violation 'of
regulations under 24 CFR, and ~ill not let any 6ubcontract unless the
subcontractor has first provided it ~ith a preliminary statement of ability to
comply ~ith the requirements of these regulations.
E. Compliance vith the provisions of Section 3, the regulations set forth in 24 eFR,
and all applicable rules and orders of the Department issued thereunder prior to
the execution of the contract, shall be a condition of the Federal financial
assistance provided to the project, binding upon the applicant or recipient for
such assistance, its successors, ~nd assigns. Failure to fulfill these
requirements shall subject the applicant or recipient, its contractors and sub-
contractors, its successors, and assigns to those sanctions specified by the
grant or loan agreement or contract through ~hich Federal assistance is provided,
and to such sanctions as are specified by 24 CFR l35.
E-l
APPENDIX F
NOTICE O~ R-~UlREMENT fOR AFFIR~TlVE ACTION
TO ENSURE EQUlU. EMPLOYMENT OPPORTUNI'IT
(EXECUTTVE 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 f~~le participation, expressed
in percentage terms for the Contractor's aggregate workforce in each
trade on all consLruction ~ork in the covered area, are as follows:
A. Goal's for Female Utilization, ]',11 Trades:
AREA COVERED
Goals for Women apply nation~ide.
GOALS AND 'TIMETABLES
Timetable
Goals
(percent)
From .2l,.pr. 1, 1978 until l-'.ar . 31, 1979....
From Apr. 1, 1979 until Mar. 31, 1980. . . .
From Apr. 1, 1980 until He. r . 31, 1981. . . .
B. Goa Is for l-''..inori tv Utilizadon:
3.1
5.1
6.9
TAHP]'.- ST. PETERSBURG, FLA., AR!:A
;'xea covered: P~llsborough, Pasco, and Pi~e11as
Counties, Fle..
Goals and Timetablesl
Tracie
Goal
(percent)
1-.11. . . . . . . . . . . . . . . . . . . . . . . . . .
17.9
1For the life of the project.
7nese goals are applicable to all ~~e Contractor's const-ruction work
(~hether or not it is Federal or federally assisted) performed in the
covered area.
The Contractor's co~pliance wi~ ~~e Executive Order and G~e regulations
in 41 CTR Part 60-~ shall be based on its i~plementation of the E~l
Opportunity Clause, specific affi~tive action obligations reouired by
F-l
the specific~tionslset for~~ in 41 CFR 60-4.3(a), Jbd its efforts to meet
the goals established for the geographical area ....he\-e ~'1e cont=act
resulting from this solicitation is to be performed. The ho~s of rr~nority
~nd fe~le employment and training must be substantially uniform throughout
the length of the contract, and in each trade, and the contractor shall
~e a good fai~~ effort to employ minorities and ~omen evenly on each of
its projects. The transfer of minori ty or female employees or trainees
from Contractor to Contractor or from project to project for ~'1e sole
purpose 0t meeting the Contractor's goals shall be a violation of the
contract, the Executive Order and the regulations in 41 C:R Part 60-4.
compliance ~ith ~'1e goals ~ill be measured against the total ~ork hours
performed.
3. The Contractor sha.ll provide \..-ri tten notification to the Director 0: t."e
Office of Federal Contract Compliance Programs ~i ~"in 10 ....or}~ing days of
a....a.rd of any cons~~ction subcontract in excesS of SlO,OOO at any tier
for constrUction ....ork under the contract resul ting from t11is solici ta 'Cion.
The notification shall list ~"e name, address and telephone number of the
subcontractor; employer identification number; estirr~ted dollar amount of
the subcontract; estimated starting and completion dates of ~"e subcontract,
and the geographical area in ~hich the contract is to be perfo~ed.
4. J1.s used in this Notice, and in the contract resulting from this solici ta tion,'
the "covered area" is pinellas Coun~, :lorida.
60-4.3 (a)
EQUP~ OPPORTUNITY CLAUSE
During the perfo~~nce of this contract, the contractor agrees as follo....s:
1. Tne contractor will not discriminate against any employee or applicant
for emplo~went because of race, color, religion, sex, or national origin.
Tne contractor ~ill u0~e af:irrr~t~ve a~tion to e~sure L~at applicants are
employed, and that employees are treated duzing employmen~ ~it.~ou~ ~egard
to their race, color, religion, seX, or national origin. Such action shall
include, cut not be limited to the following: EQployment, upgrading,
demotion, or transfer; rec=-ui tment or recrui t.ment ac.ver~ising; layoff or
termination, rates of payor other fo~ of compensation; and selection
for training, including apprenticeship. T.~e contractor agrees to poEt
in conspicuous places, available to ~ployees and applic~~tS for employ-
ment, notices to be provided setting for~" the provisions of this non-
discrimination clause.
:2. The contractor, \..'ill, in all solici ta tiOI'.s or advertiseDents for employees
placed by or on behalf of ~~e contractor, s~te ~at all qualified
applicants ~ill receive consideration for em?loyment wi~"ou~ regard to
race, color, religion, sex, or na~ional origin.
_. Tne contractor ~ill send to each labor union or representative of ....orkers
~i~~ which he has a collective bargaining agreement or o~er con~act or
\:.~derst.anding, a notice to be provided advising the said labor union or
~orkers' representatives of thecon~actor's co~~ents under G~is
section, and shall post copies of L"e notice in conspicuous places avail-
able to ~?loyees and applicants for employment.
F-2
4. The contractor ""illlcomply ....itb all provisions of Exlcutive Oreer 112~6
of September 24, 1965, and of the rules, regulations, and relevant orders
of the Secretary of Labor.
s. The contractor ""ill furnish all information And reports required by
Executive Order 11246 of September 24, 1965, and by rules, regulations,
and orders of the Secretary of Labor, or pursuant thereto, and ""ill permit
access to his books, records, and accounts by the adr-.J.nis tering agency
and the Secretary of Lc.bor for purposes of investigation to ascertc.in
compliance ""ith such rules, regulations, and orders.
6. In. the event of the con tractor I s non-compliance ""1 th the nondis crimina tion
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 ~art and the contractor may be declared ineligible for further
Goverr~ent 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. J~e contractor ""ill include L~e portion of the sentence ~ediately
preceding paragraph (1) and the provisions of paragrap~~ (1) tbxough (7)
in every subcontract or purchase order unless exempted by ~les, regula-
tions, or orders of the Secretary of Labor issued pursuant to section
204 of ~xecutive Order 11246 of September 24, 1965, so that such provisions
....ill be binc.ing upon each subcontractor or vendor. The contractor ""ill
take such action ""ith respect to any subcontract or purchase order as
L~e administering agency may direct as a means of enforcing such provisions,
including sanctions for non-compliance: Provided, however, That in t'1e
event a contractor becomes involved in, or is threatened ""ith, litigation
with a ~ubcontractor or vendor as a result of such direction by the
a~~nistering asency, the contractor may request the United States to enter
into such litigation to protect the interes~ of L~e United States.
ST..llJ,'O;'Y.D FEDER?.L EQUAL EHPLO~1ENT OPPORTUNITY CONSTRUCTION CONTRACT
SPECITID.TIONS (EXECUTIVE ORDER 11246)
1. hs used in t.1,ese specifications:
a. "Covered area" means ::he geographical a=ea desc:::-ibed in the solici ta-
tion fro~ ""hich G~is contract resulted.
b. "Director" means Directo:::-, Office. of Federal Contract Compliance
Prosr~5, Onited States Depar~nt of Labor, or any person to whem
the Director delegates authority.
c. "E!;:?loyer identifica tion nU!T'.!:>er" means t.l-Je Federal Social Security
nurrber used on t.l-Je ~loye:::-'s Quarterly Federal Tax Return, U. S.
Treasury Depa=o:nent Fo::::n 941.,
d. "P..i.nori ty" includes:
:-3
(1)
Black (all Jlrsons having origins in any of t~e Black
African racial groups not of Hispanic origin);
(2) Hispanic (all persons of Mexica:n, Puerto Rican, Cubdn,
Central or South American or other Spanish Culture or
origin, regarcless of race) I
(3) Asian ~~d Pacific Islander (Lll persons having origins
in any of the original peoples of the r~r East, Sou~~east
Asia, the Indian Subcontinent, or the Pacific Islands); and
(4) American Indian or Alaskan Native (all persons having
origins in any of the original peoples of North America and
maintaining identifiable tribal affiliations through member-
. ship and participation or community identification).
2. Hhenever the Contractor, or any Subcontractor at any tier, subcontracts
a portion of the ~ork involving any const-~ction trade, it shall
physically include in each subcontract in excess of $10,000 the provi-
$tons of these specifications and the Notice which contains the ?p-
pllcable goals for minority and female participation and which is set
forth in the solicitations from ~hich this contract resulted.
3. If the Contractor is participating (pu=suant to 41 CFR 60-4.5) in a
Hometo~.Plan approved by L~e O. S. Department of Labor in the covered
area either individually or through an association, its affirmative action
obligations on all work in the Plan area (including goals and timetables)
shall be in accordance ~ith that Plan for those trades ~hich have ~~ions
participating in the Plan. Contractors must be able to demonstrate their
participation in and ccmpliance wiL~ t.he pro\risions of any such Hometo-.rn
Plan. Each Contractor or Subcontractor participating in an approved Plan
is individually required to comply wi th its obliga tions under .the E:::O
clause, and to make a good fai th e'ffort to achi eve each goal uncer the
Plan in each trade in ~hich it has eIDployees. Tne overall good faith
perfo~nce by o~~er Contractors or Subcontractors toward a goal in an
approved Plan does not excuse any covered Con~actor's or Subcontractor's
failure to take good faith efforts to achieve the Plan goals and t~e-
table.
4. The Contractor shall implement the speci!ic affirmative action standarcs
provided in paragraphs .7,a through p of these speci!ications. The goals
set forth in the solicitation from ~hich this ccn~act resulted are
expressed as percentages of the total hours of employment a.nd training
of minority and female utilization the Contractor should reasonably be
able to achieve in each constcuction trade in'~~ich 'it has employees in
~~e covered area. The Contractor is e>~ected to make substantially
uniform progress toward its goals in each craft during ~~e period
specified.
5. Neither the pro"risions of any collective bargaining agreement, nor the
failure by a u.~ion 'With ~hom the Ccntractor has a collective bargaining
agreement, to refer either minorities or ~om~ shall excuse the Contrac-
tor's obligations ~~der these specifications, :::xecutive Order 11246, or
the re~ulations promulgated pursuant thereto.
F-4
.6. In order for ~)e jiO;-I~'c':~~l.~j ':=a'::":~:'-n9' ho~s 0'::' ot-',t:..:. l,.::J .~..::..:.. t.,;'S c..~~C :..:.. c.-.~.L:t::i
to be COlL'1 tee in meettng tile goal~, such aFP~e~tices ~ nd t=ainees mus t,
be employed by the c~tractor dur~ng the traln~ng pe~~td, and the
Contractor must have made a commitment to employ the a~prentices and
trainees at the completion of their training, subject to the availabil-
ity of employment opportunities. - Trainees must be trained pursuant to
training programs Approved by the U. S. Department of Labor.
7. The Contractor shall take specific affirmative actions to ensure equal
employment opportunity. ~e evaluation of the Contractor's compliance
'.lith these si,Jecifications. shall be based upon its effort to achieve
maximum resul ts from its actions. The Contractor shall document these
efforts fully, and shall implement affirmative action steps at least as
extensive as the following:
a. Ensure and maintain a working environment free of harrassment,
intimidation, and coercion at all sites, and in all facilities at
which the Contractor's employees are assigned to work. The
Contractor, where possible, will 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 awa=e of and carry out the Contractor's obligation to maintain
such a working environment, with specific attention to minority or
female individuals working at such sites or in such facilities.
b. Establish and maintain a current list of ~~nority and female
recruitment sources, provide written notification to minority and
female recrui tmen t sources and to communi ty organi za tions .....hen the
Contractor or its unions have employment opportunities available,
and maintain a record of the organizations' response~.
c. 1-~aintain a current file of the names, addresses and telephone
numbers of each minority and female off-the-street applicant and
~~nority or female referral from a union, a recrui~ent source or
communi ty organi za tion and of what 'action ...;as taken '"'i tJ1 respect
to each such individual. If s'uch inci vidual was sent to t..'1e union
hiring hall for referral and ....as not referred back to t..'1e Contyactor
by t'1e union or, if referred, not eu~loyed by t'1e Contractor, this
shall be documented in the file with the reason t'1erefor, along with
....hatever additional actions the Contractor may have taken.
"
d. Provide immediate written notification to the Director when the
union or unions ....ith which the Contyactcr ~as a collective
bargaining ag~eernent has not referred to ~~e Contractor a minority
person or ....oman sent by t'1e Contractor, or when the Contyactor has
other information that the union referral process has impeded t'1e
Contractor's efforts to meet its obligations.
e. Develop on-the-job training opport~'1ities and/or participate in
tyaining programs for the area ~hich expressly include minorities
and women, including upgrading programs and apprenticeship and
trainee programs relevant to the Contractor's employment needs,
especially those pro~~5 funded or approved by the Depa=trnent of
Labor. The Contractor shall provide no~ce of these programs to
the sources compiled under Th above.
f. Disseminate the Contractor's EEO policy by providing notice of the
policy to unions and training progr~~ and requesting t..~ei= coopera-
tion in assisting the Contractor in meeting its EEO obligations; by
including it in any poli~i ~~nual and collective bargaining agreement; by
F-5
I
I
publicizing it in the company newspaper, ~r~u~l report, etc.; by
specific review of the policy with ~ll management personnel and
with all minority and female employees ~t least once a year; and
by posting ~~e company EEO policy on buJ.letin boards accessible
tD all employees at each location ....here constrUction \.,Iork is
performed.
g. Review, at least annually, the company's EEO policy and affirmative
action obligations under these specifications ",'ith all ~ployees
having any responsibility for hiring, assigr~ent, layoff, te~ina-
tion or oL~er ~ployment decisions including specific review of
these items wi tJ. onsi te supervisory personnel such as Superintendents,
General Foremen, etc., prior.to the initiation of constTuction wo~k
at any job site. A writtenreco~d shall be made and maintGined
ide'ltifying the time and place of these meetings, persons attending,
subject D~tter discussed, and disposition of the subject u~tter.
h. Disseminate the Contractor's EEO policy externally by including
it in any ~dvertising in the news media, specifically including
minority and female ne\.,ls media, and providing written notification
to and clis.:ussing the Contracto~ I s EEO policy ",'i t.h othe~ Cont.::"ac-
tqrs and Subcontractors wiL~ whom L~e Contractor does o~ antici-
pates doing business.
1. Direct its recrui::ment efforts, both oral and wTitt.en, to minority,
ferr~le and community organizations, to schools wi~ minoriy' and
ferr~le students and to mino~ity and female recruitoent and training
organiza tions serving the Cont=actor 's rec=ui tment. area and eInploy-
men t needs ~ Not Ie? t.er than one month prior to the ca te for the
ac=ep~ce of applications for apprenticeship or other t.raining
by any recruitment. source, the Contract.or shall send writt.en
notification to organizations such ,as L~e above describing ~~e
openings, screening procedures, and tes~ to be used in the select.ion
process.
j. Encourage present u~nority and female employees to recruit other
~nori~' persons and \.,Iomen and, where reasonable, provide after
s=hool, s~er ~~d vacation em?lol~ent to minority and f~~le youth
both on t."e si te' and in other areas of a Con ~actor I s \.,Iorkforce.
,;.".
k. Validate all tests and otber selection requirements ~here L-.,e=e
is an obligation to do so ~~der.~l C?R Part 60-3.
1. Conduct, at least ~~nually, an inventcry and evaluation at. least 0:
of all winority and feE~le perso~~el for promot.ional opportunities
and encourage t."ese employees to seek or to p~epare for, tPJough
appropriate ~aining, etc., such opportunities
ID. ~~ure that seniority practices, job classi:ications, ~ork assign-
ments ~~d ot.~er personnel practices, do not have a discrimina tory
effect by contin~ally IDOnit.orL~g all pe=sonnel and ~~ployment
related ac~vities to ensure that the ~O p~licy and the Con~actor's
F-6
obligations undel these specifications are being larried out.
n. Ensure that ~ll facilities and company activities are non-
segrated except that separate or single-user toilet and
necessary changing facilities shall be provided to assure
pri vacy be tween the sexes.
o. Document and ~~intain a record of all solicitations of ofIers
for subcontracts from I:linority and female construction
contractors dnd suppliers, including circulation of solicitations
to minority and female contractor associations ~d other business
associa tions.
p. Conduct a review, at least annually, of all supervisors' adherence
to-and performance under the Contractor's EEO policies and
affirmative action obligations.
8. Contractors are encouraged to participa te in vOluntary associa tions
which assist in fulfilling one or more of their affirmative action
obligations (7a through p). The efforts of a contractor association,
'joint con tractor-union, con tractor-communi ty, or other similar group
of which 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 ~n the group, ~~es every effort to assure tryat the group has
a positive impact on ~~e emplo)~ent of minorities and wo~en in the
indust-J', ensures that ~~e concrete benefits of the program are
reflected in the Contractor's minority and female workforce partic-
ipation, makes a good faith effort to meet its individual goals and
timetables, and can provide access to document.ation ",'hich demonstrates
the effective~ess of actions u0:en on behalf of the Contractor. Tne
obligation to comply, however, i~ the Contracto='s and failure of such
a group to fulfill an obligation shall not be a oefeDse for the
Contractor's noncompliance.
9. ,A single goal for l!'.inorities and a separate sins-le goal for ~omen have
been established. The Contractor, however, is required to prov~Qe
equal emp~oyrnent opportunity and to take affi~2tive action for all
minority groups, both male and fe~~le, and all women, both minori~
and non-minori t)'. Consequently, t.:'1e Contractor may be in violation
of the Executive Order if a particular group is employed in a substan-
tially disparate manner (for example, even ~~ough the Contractor has
achieved its gocls for ....omen generally, the Contract:cr rr.ay be in
violation of the Exe~~tive Order if a specific minority group of women
is underutilizec).
10_ T.'1e 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 with any person
or fi~ debarred from Goverr~nt contracts pu=suant to Executive
Order 11246.
F-7
12. The Contractor still carry out such sanctions and tenal ties for '
violation of these specifications and of the Equal opportunity Clause,
including suspension, termination and ~ancellation of existing sub-
contracts as may be imposed or ordered pursuant to Executive Order
11246, as amended, and its implementing regulations, by the Office
of Federal Contract Compliance Programs. Any Contractor ~ho fails
to carry out such sanctions and penalties shall be in violation of
these specifications and Executive Order 11246, as amended.
13. The Contractor, in fulfilling its obligations under L'1ege specifications,
shall implement specific affirmative action steps, at least as exten-
sive as those standards prescribed in paragraph 7 of these specifica-
tions, so as to achieve maxllnum results from i,ts efforts to ensure
equal employment opportuni ty. If the Contractor fails to comply ~i th
the, requirements of the Executive Order, the implelDenting regula dons,
or these specifications, the Director shall proceed in accordance ~ith
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 I cons trUction trade, uni'on affiliation if any, employee
identification number ~hen assigned, social security number, race,
sex, s"Ca tus (e. g., mechanic, apprentice, trainee, helper, or laborer),
dates of changes in status, hours ~or}~ed per ~eek in the indicated
trade, rate or pay, and locations at ~hich the ~ork was performed.
Records shall be maintained in an easily understandable and retrievable
fo~; however, to the degree that existing records satisfy this
requirement, contractors shall not be required to ~aintain separate
records.
15. Nothing herein provided shall be cons trued as a l~,:,.i ';:.a tion upon the
application 0: other laws which establish di:ferent standards of
cornpli~~ce or upon ~'1e application of requirements for ~~e hiring of
local or other area residents (e.g., those ~~oer ~'1e Public Works
Employment Act of 1977 and the Co~~~ity Development 3lock Grant
Program) .
F-B
1
APPENDIX G
OMB
Circular A-110
,
I
I
Office of Management and Budget Circular A-110 (7/30/76)
A-110:1
OFFICE OF MANAGEMENT AND
BUDGET
(Circular No, A-lID]
GRANTS AND AGREEMENTS WITH INSTI.
TUTIONS OF HIGHER EDUCATION,
HOSPITALS, AND OTHER NONPROFIT
ORGANIZATIONS
Uniform Administrative Requirements
JULY I, 1976.
To the heads of executive departments
and establislunents.
Subject: Uniform administrative re-
Quirements for grants and other agree-
ments with Institutions of hizher edu-
cation, hospitals, and other nonprofit
organizations
1. Purposc,-This Circular' promul-
gates standards for obtaining consiskn-
cy and unHormity among Federal agen-
cies in the ndministratlon of grants to.
and other agreements with. public and
private Instltutions of higher education,
pUbllc and private hospitals, and other
Quasi-publlc and private nonprofit or-
ganizations. This Circular docs not apply
to grants, contracts, or other agreements
,between the Federal Government. and
units of IState or local governments
covered by Federal Management Cir-
cular 74-7.
2. EtJective date.-The standards in
the attachments to this Circular will be
applied as soon as practicable but not
later than January 1,1977.
3. Supersession.-This Circular res-
cinds and replaces parts III and IV of
the AppendiX to Federal Management
Circular 73-7, Administration of college
and university research gran1.S.
4. Policy intent.-Tne uniform stand-
ards and requirements included in' the
attachments to this Circular replace the
varying and often confiicting require-
ments that have been imposed by Fed-
eral agencies as conditions of grants and
other agreements ",.ith recipients.
5. Applicability and, scope,-Except as
provided below, the stanclsrds promul-
gated by this Circular are applicable to
all Federa.l agencles. If any statue ex-
pressly prescribes policies o~ specific re-
Quirements that dilIer from the stand-
ards provided herein, the proviSiOns of
the statute shAll govern.
The provisions of the attachments of
this Circular shall be applied to suhre-
clpients performing substantive work
under grants that are passed through or
awarded by the primary reCipient if such
subrecipients Rre organizations de-
scribed in paragraph 1.
6. Definitions.
a. Tne term "grant" means money or
property provided in lieu of mone~' paid
or furnished by the Federa.l Government
to recipients under programs that pro-
vide financial assistance or that prOVide
support or stimulJJ.tion to' accomplish a
publiC purpose. The term "other agree-
ments" docs not include contracts which
are required to be entered inm and ad-
ministered under procurement laws and
regulations. Grants and other agree-
ment.s exclude (a) technical assistance
p;ograms, which pro\'idc services instead
r-. ~.,-,,"in." rh', ........~;.--!.........'"'r\ ;~.... ;\",... r.............,,~ 0'
general revenue sharing, loans. 102-n
guarantees, or insurance, and (c) direct
payments of any kind to individuals.
b. The term "recipient" includes the
following types of nonprofit organiza-
tions that are receiving Federal funds
from a Federal agency or through R
State or local government:
Public and private Institutions of high-
er education: public and private hos-
pitals: and other Quasi-PUblic and pri-
vak nonprofit organizations such as (but
not I1mited to) comm\mity 3-ction agen-
cies, research Institutes, educational as-
sociations, and health centers.
The term does not include foreign or
international organizations (such as
agencies of the United Nations) and
Government-owned contractor operated
facilities or research centers providing
continued support for mission-oriented.
large scale programs that are Govern-
ment-owned or controlled, or are dee,
signed as federally-funded research and
development centers.
7. RCQlLCsts for cxccpf.ions.-The Ornee
of Management and Budget may grant.
exceptions from the requirements of this
Circular when exceptions are not pro-
hibited under existing laws.
However. in the interest of ma,:imum
uniformity, exceptions from the re,-
Quirements of the Circular v:il1 be per-
mitted only In unusual Cll.Ses. Agencies
may apply more restrictive requirements
to a class of recipients ",'hen approved by
the Office of Management and Budget.
8. Attachments,-The standards pro-
mulgated by this Circular are set forth
in the Attachments. which are:
Attachment A Cash-oeposltorles,
Attachment B Bonding and Insurance,
Attachment C RetentIon and custodial re-
qu1remen't.S for records.
Attachmeru D Program Income,
Attachment E Cost shru-Ing and matching.
Atto.chment F Standards for flnanclaj man-
agement systems,
Attachment G Financial reporting requlre-
mentE.
Attachment H MonlLorlng and reporting
program perlormallce.
Atu.chment I Payment requIrements,
Attachment J RevisIon 01 financla} plans,
AtLa.chmenl K Closeout procedurcs,
Attachment L Suspension and termInatIon
procedures.
Attachment M Stl\ndard lorm lor applying
lor lederal asslst.&nce,
Attachment N Property managemcnt stand-
ards.
Attachment 0 Procurement standards,
9. Exceptions for certain recipients.-
Notwithstanding the provisions of para-
graph 7 if an applicant/recipient has a
history of poor performance. is not fi-
nancially stable. or Its management sys-
tem does not meet the standards pre-
scribed in the Circular, Federal agencies
may impose additional requirements as
needed provided that such applicant/
recipient is notilled 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
Bud!,et and other agencies funding that
recipient at LI-Je same time the recipient,
; -:- ....., t"'1~ ; h r>"":
10. Responsibilitics,-Agencies respon-
sible for administ.ering programs \.hat in-
volve grants and other agreements with
recipients shall issue the appropriate
regulations necessary to implement the
provisions of this Circular. All portions
of such regulations that involve record-
keeping and/or reporting reQuirement.s
subject to the provisions of the Federal
Reports Act and OMB Circular A-10
must, be submitted to OMB for clearance
before being introduced into use. Upon
,request all regulations and instructiom
implementing this Circular sh;tll be
furnished to the Office of Management
and Budget. Agencies shaH also desig-
nate an official to serve as the agency
representative on matters relating to the
!mplementation of this Circular. TIle
name and title of such representative
shall b.e furnL'ihed to the Office of Man-
agement and Budget not later than Au-
gust 30, 1976.
J 1. /7!Quiries,-Purther information
concerning this Circular may be obtained
by contracting the Finllncial Mana(::e-
ment Branch. Budget Review Division.
Office of Management and Budget,
Washington, D.C. 20503, telephone 395-
3993.
JAMES T. LYNN,
Director.
ArrACHMF.NT A,--CmcuLAn No. A-lID
CASH DIYOSITOllIE6
L This attachmeIlt sets 10l'th st..ndards
governIng the use of banks and other In-
stitutIons as depositories 01 funds l\dvanced
under grants and other agreements,
2. Except lor sItuations descrIbed In parR.
graphs 3. 4. aDd 5, no Federal sponsoring
agency shall:
a. Require pbyslcal segregation of cl\Sh de-
positorIes for lunds whIch are pro\'lded to a
reclpleDit,
b, Establlsh any ellglblll ty req ulr,emen ts
lor cash deposlLorle.s lor lunds whIch are pro-
,'Ided to a recipient,
3, Jo. separate bank a"count shan be require
",'hen applicable letter-ol-credlt agreements
provide that drawdo",.,,~ will be mr.de when
the recipient's checks are presented to the
bank lor payment,
4, Any moneys adv"llced to a recipient
v.'hlch are sub)ec,t to the contrtlJ... or regula-
'.Ion 01 the U nl ted States or any 01 Its onkers.
rgents or employees' (public moneys as de-
fined In Treasury Circular No, 1:16, as
amended) must be deposited In a ban'" with
Fedeml DeposIt Insurance Corporation
(FDIC) Insurance coverage and the halance
exceedIng the FDIC coverage must be col-
laterany secured,
5, Consistent v.'lth the natIonal Roal of
expanding the opportnnltleS lor mlnorll,y
buslnes~ enterprises. recipients and s\lb.
recipients shall be encouraged 'to use mInor-
Ity banks (a bank ",'hlch Is o..mec at least 50
percent by mInority group members),
ArrACHMt:NT B,-CmctJLAll No, A-1l0
BONDING AND INSURANCE
:, This attachment sets forth bonding and
1nsurance requirements fOT ~T8.nt.s end other
RgTeement5 v.1th recipIents, No other bond-
tng and insurance requtremcn1t.s sha.ll be tm-
posed other than those normally required by
the recIpIent,
2, Except as otherwIse required by la\\'. a
grant or other agreement that requlrcs the
contractlng (or subcontrnct1n~) for con.
strue-tion or facility Impro~cments shnll pro-
~.,,..I,, ',-.,._ .\-", _,,~l...,\...",' ~" "-...-,1',,,",~,' 1!,' ,..,.,." '."'-
I
Office of Management and Budget Circular A-110 (7/30/76)
qulrtmtnU; ,..,latlng to bid gufJ"ant.tu, ptr-
lorma.nct bonds, and paymtnt bOndli unlll68
tbt constructlon contr&Ct or subconUact H-
utdli $100.000. ,For those ooDJtracu; or sub-
contl"&CLs exceeding '100,000. tht l"tl1tral
alttncy may acctpt the bonding policy and
requlrementll 01 the grantee provll1ed the
Federal agenc)' h..... mal1e' a l1etermlnatlon
that the Government.s Interest ~ al1equately
protected. Xl such a determination has not
been m&de, tht minimum requirements shall
be.... lollo""s:
a, A trld vuarantec Jrom e.tJ,Ch bkldu equiv-
alent to JIve ptrcent 01 the ble prlce,-
The "bId guaran>tee" shall consIst 01 a firm
commitment such as a bid bond. certified
check. or other negotlable Instrument 8C-
companying a bid 88 8.6Surance tbat the bId-
der .....m. upon acctpt.ance ot h1s bid, execute
such contr&ctuAI documenl.8 ..... mJlY be rt-
qulred within the time sptclfied.
b. A 1XrJorma~e bond on the part 01 the
contractor lor ~OO percent 01 the contract
'fJ1'lce.-A "p"r1ortnJ\nce bond" Is one executed
In connectlon with a contract to securt lul-
fillmtnt 01 ILl I tht contractor's obllgatlons
undtr such contrl\Ct.
c. A payment bcm<i on the part 01 the con-
tractor lor JOO percent 01 the contract
prlce,-A "paymtnt bond" Is one txtcuted In
conntctlon w1tb a contract to 88.ur. pay-
m.nt s.s requlrtd by la"" 01 all p"1"IlOD8 sup-
plying labor and material In the executlon of
the work provided tor tn the contract.
3. Where the Pederal Gov.rnIDtnt guaran-
tees or IIlBU..... tn. rtpaymtnt 01 monty
borrowed by the reclpltnt. the Federe.l
agenc)". at 1l.8 dlacretlon. may require a.de-
quate bonding r.nd Insurance If the bonc1lng
and Insurance requlrcmentll of the recipient
are not d~med a.dequate to protect the tn-
terest ot the Feder..l GovHnment.
~. Th. Fecl,eral sponsoring s.gency may no
qUlr. a.dequate fidelity bond covers.ge ",'htre
the recipient h... no covers.ge and the bond 14
needed Ita protect the GovHnmtnt.s Interest.
ti. Vi'btre bonds are required In the situa-
tions de&crii:>ed ..bove. the bonds shall be oh-
Ulned lrom comp&Dles holding certlficate<l of
"uthorlty s.s &CCept.able sureties (31 crn
2:r.l).
ATT...CRw:x,,-r C.--CDtCUI.AJl No. A-liD
z.rnNTlON ANn CUSTODIAL BLQum.xWXNT5 roa
"~OItD5
1. Thlo ..tt.achment &el.8 forth record rtten-
tlon requJremtnts tor gr&Dl.8 8.Tld oUler &gTee-
menl.8 with recipIents. FedeTILI sponsoring
"I>"ncles shlLll not ImP<"'e "ny record reten-
Lion requlrtmento upon rec1plents other than
tbO&e described below,
2. ExceRllor p"TlLgT'nph I. th~ ..tt&Chment
..Lsc &pplles to subreclplents .... r.terred to
In par..gr&ph ti ot tht bs.slc clrcul&:
3. rtn..ncl..l records. supporting dc:.uments
st.atlotlclLl recorl1B, 8.Tld ILll otber recorl1B p"rtl:
n.nt to an "!;Teement &hILlI be retsJned lor a
period of Ulr"" Y.llJ"ll. ....IUl t...... tollo"'1Dt
quaJlficatlolU :
L If L"::~ IItl~atlon. claim or audit Is .t&J1.ed
bdore tht ""PITlLtlon ot the 3-ye..r period the
r<<:orl1B &hlLll b. ret.alned until all lltl~"tjOn.s
clalmA. or audit finc1Jngll l.nvoh.tng tb. rt!COr~
hav" b""n resolveG,
b. Records lor non.xpendable pro;>eny B.C-
qulred wlLh ~era1 1unds wILlI be r.t.alned
lor S yearr. L1ter 11.5 finLl dllllX"'ltlon
c, When r"",.ords e.re trFLn.6terred ~ or mlLlo-
talned by the 1"edero.1 ~OD.'>OMng ag.ncy th.
~-l)"ear nteotlon requlre~nt Is not app'lIca-
e to tbe r~lpl"ot.
~. Tb" r.tentlon perIod .t.artB 1rom the
~te 01 tb. eubm.ls.lllon Ot th. nnlLl e%pCnCJ-
m~ report or. tor ~ts e.nd other &.gree-
da ts that e.re T1:o.....eG "n.oulLlly, 1rom the
fi t.e ot the 6ubmlsslon Ot Ul. e.nnulLl
OLDCt",! etA tUll r.-port,
6. RecipIent organlutloru< ahould bt au-
thorized by th" YedtTILI aponsorlng &g.ncy.
II thty 80 deslrt. to 6ubstltute mJcrofilm
oopl... In Il.u ot onrlnAl rtcords.
6. Th" J"ederlLl 6ponsorlng s.gene)' &hall r.-
quest tr..nster 01 certain r.cord. to 11.5 CW-
tod)' lrom r.,.,lplent org8.TllutloIUI ...hen It
dttermlnes th..t the rt!COre1a pass""" long-
ttrm retentlon value. Howevtr. In order to
avoId dupllcatt r.cord-keq>lng, a Fed"ral
sponsoring ~ency may make ..rrangemtnts
"'1th recelplent organlzatlOD8 to reLlLln any
r"corl1B that art continuously n""ded tor
Joint US".
7. Tht h.ad or the Federal sponsorIng lLf:en.
e)' and the Comptroll.r General 01 tll" UnIted
StAtes. or any of thtlr duly authorized repr.-
sent.atlves. shall havt ""cess to &rIY p.rtlnent
books. document.,. paptrs. ..nd r<!COrds ot the
recipient org..nlzAtlon and th"lr subrt-
clplenl.-! to IDAk" audits. txamJnatlons, ex-
cerptll &rid tre.nscrlpl.8.
8. Unless oUltrwls" r"qulred by I a..... no
F'tderal sponsoring ag.ncy "hall pl&ce re-
strlctlolU on recipient org&nlza tloD8 that wlU
limit publlc n.ccess to the rlXXlrc1a or recIpient
organizations that ..rt p"rtlnent to a grant
or s.greemen t "xcept wh en th e agency can
d"mon.strate th..t such reeords must bc kept
confidentllLl e.nd would have b""n exupted
Irom dlsclosur. pUTlluant to tht F'rt!edom ot'
Intormatlon Act (6 U.8,C. titi2) U Ul. records
ha.d htlonged to th" Fed.ul Bponsor1ng
s.g"ncy.
ATTACHJoaNT D.--CmctlLJ.Jl No. A-liD
P1lOCR...Lt INCOloU
I. Yed"ral .ponsortng ~ncles ahlLll &pply
the atAndards s"t torth In this attachm.nt In
requiring reclpltnt organlutlons to &.Ceount
10r progrs.m Inoomt rel..ted to proJecl.8
financed In ....hol. or 1n pll.!'t w1th Federal
lunc1a. Progrsm Incom" r"pres"nts gT'Ol!B In-
come esrned by the r"clplent from tht fed-
erally supported &Ctlvltlee. Such "arnlngs ex-
clude Intere5t t..rneO on a.dvances a.nd m&y
Include. but wUI not be limited to. Incom.
Irom servlct lees, sILl. Ot commodJtlee. u""€t
or rentAl I~, and roylLltles on patento e.nd
coprlgbts.
2. Interest efJ"ned on s.dva.nces 01 Federal
lundli ah..l1 bt remItted to th" reOeral s.gency
e"""pt for Interest earned on a.dvanoefl 'to
St.atell or IIlBtnunent&lltlee 01 " St.ate as pro-
vided by th" Intergov",nmentnl Coope~tlon
Act ot 1968 (Public LB.w ~TT).
3. Procee<1s trom tht 8&1" of r-.! a.nd per-
sonaJ property "Ither provided by the Fed-
eral Government or purch88ed In ""bole or In
part w1th Peder..l tunl1B. sbaJl b. handled 1n
a.ccorde.nu WIth Att.achment l' to thlll clr-
culu pertsJnlng to property ou.na.gem"nt.
... UnlCM tbe '4'r~mtnt provldCll other-
....Ist, rt!Clplents llhlLll b&ve no obllg..tlon to
the J"ecIerlLl Oov"mment WIth r...peet to
royaltl"" received .... a result of COPYTI~hl.5 or
po.tento produced und"r tht gre.nt or oth"r
s.gr"em"n t (""" p....."ET""Ph 8. ^ tt&chment N).
6. All oUltr pro~ram Income earned dur1Dt
tht proJt!C\. peMod shall be retained by the
recipient ..nc.. In ""cord""':e ,,'Ith tbt gr&nt
or oUler &gT""men t. shlLll be:
a,. Added to tunl1B cOmmJtted to the proJ-
ect by tht ~eral sponsoring !4:encv e.nd
recipient org..nlzatlon 8.Tld be Ul>ed. to t~rtber
ellglble prop-am obJ"ctlves:
b, Used to finanu th. non-Fedtr,,1 &hs:e
Ot th. project ....hen approved by the Federal
8ponsoMDt s.g.ncy; or
c, ~ucte<: from tht tot.al project C06ts
In determinIng tht n.t OOIlts on whlcl1 the
r'eQeTILI &hue ot CO!lto wlll be bo.sOO.
ATT...CS>o<n-.-r l:,--CDtCUl.AJt No. A-lID
C08'":' I5H....\.L.D'1'C AND ).(ATCHINO
L Thill ~tt&cllment ""l.8 forth crlt.erta ..nd
pT'OCe<1uree fOT tht' a1l0'WTJ.hlllrr r,r rR-"" I"-.f"l
,
A-110:2
In-kind contrlbutlona ma.d. by reclpl.nts or
subreclpl.n1.5 (.... r.rerr.d to In paragraph 1;
01 the b""lc clIcular). or third parties In sal-
Islylng cost sharing &Dd matching r"qulr.-
ments ot Federal aponsorlng ag.ncles, Thl.
attAchmtnt also "stAbllahes criteria for th.
tvaluatlon ot In-kind oontrlbutlons ma.d. by
tblrd parllee. and supplements tht gUldanc.
s.t torth In Fedtral MAnagement Circular
73-3 wlt1h respect to cost shlLTlng on ledtr-
ally-sponsor.d r....earch.
2. Th. lollov.'lng ddlnltlons apply lor the
purpOSt 01 this attAchm.nt:
a. Project co.t..-ProJ"ct 00.\.8 arc all al-
lov.",ble COBl.8 ("" set lorth In the appllcabl.
F.d.ral coot prinCiples) Incurr"d by" reclpl-
, ent and the value ot the In-lUnd contribu-
tions made by the r.clplent or third PlLTlle.
In accomplishing th" obJectlve. ot the ~rant
or oth.r agre.ment l1urlng tb. project or pro-
gr&m perIod,
b. Co.t .harln" an<! m<ltchtn",-ln general.
cost sharing and matching rtpresent that
portlon or proJ"ct or program costs not borne
by tht Federal Oovttnm.nt.
c. C,,-,h ccmtrlbUtlOTU.--Cash contributions
repre5ent the reclplent'& c.....h outlay, tnclud-
lng the outlay ot monty contributed to the
recIpIent by non-F'ederal third pfJ"tles,
d. In-kInd contrlbutlo1L3.-ln-klnd contrl-
butloIUl reprellent tht value ot nonc&ab con-
tributions provld.d by the recIpient IUld
non-~.ral third partl"". Only ....h"n aU-
tlborl7.ed by F'ed"ral leg~ls tlon. may property
purCh88ed with Fecit ra 1 funds b. conald.eTed
.... tht r"clpl.nt.s In-k.lnd contributions. In-
kind contributions may be tn the lorm ot
ch..r~es lor relLl property e.nd non-exp&nd-
abl" persollAl property, and th. vLlut of
goods and ""rvlces dlreetly benefitlog ..nd
.p"clfically Ident1.fi&ble to tht project or
program.
3, General guldellnes for computing cost
sharing or ma tchlng fJ"e .... follows:
a. Cost ahfJ"1ng or matching mAY conalat,
or:
(I) ChargeE tncurre<l by th. recipient &&
project costa, (Not &11 charges "'Gulr. ca.sh
outlaYll by tht recipient during t1he project
period; eX&IIlples ......., depreclaUon e.nd U6C
charg"" lor buUdJ.ngs &DO equipment.)
( 2 ) Pro) ect COB to fin.s.n cod 'W1 Ul ca.sh con-
tribute<! or don&t.ed to the recipient by other
non-F'el1eral public ~nclea ILOd Instltutlon.o.
and private organlzatlolU e.nd tndlvlduw
and .
(3) Project COflU nprellented by llervleee
anO real ..nd pen.onal prop"rty, or Ulle the,..,-
or. l10nated by other non-PedeTILI public
s.gencl... e.nd IIlBtltutlons. e.nd pru.-ate org.>-
nU.a tlOIlB LCd Inc1J nd u&la. '\
b. All contrlbutlons. both cash r.nd 1n-
kln~. &ball bt! accepted .... part 01 the reclpl-
tnt's cost shs.r1ng and mA'tchtng when ;,uch
contrlbutlona me,,! ..11 01 tb. lollowlng
crlterts :
(I) Are veTUlabl" lrom the reclplent.s
records;
(2) An not Included.... cootrlbuLloDB lor
any other lederally-......I.ted prop-am;
(3) Ar. necNl8&ry and re&1>Onabl. lor prop-
er and etllclent aooompllahm"nt ot project
obJ.ctlve.ll:
('l) An: types 01 chfJ"ges that would be ~l-
lowable under th. "Ppllcable OO<lt principles;
(5) An: not paId by the ~eral Oovern-
ment und.r another .......laUnC<l ap-eement
(unl""s th. o.greement ~ &utborlzed by ~-
eral Ia.... to be U&ed 10r~ slu.rlng or mAtch-
Ing):
(6) Arf: provided lor In th" &pproved budg-
et ",h.n required by the J"edeTILl &gency; and
(7) Con1orm to oth.r provtslons ot thlJl
attM:hment.
4., Values lor J'OClpleot in-kind contrlbu-
tloDJ! will be est.abll-.bed In ~rd8.Doe WIth
the &ppllcable eoet principles,
6, Sp<ocU'lc p~u"", lor th" reoclplento In
~<f,.\,",l1""\rl~ f'h.. ,-.c.l.,_ ,.," ;"'"'_lo-l......~ .........,_.._lh"
I
Office of Management and Budget Circular A-110 (7/30/76)
tlons from non-Federal third parlles arc set
forth belOW:
a, Valuation 01 "o/untccr SCTl,iccs,-\'olull-
teer services may be furlllshed by professIonal
and technical personnel, consultants, nnd
other skilled and unskilled lahar. Volunteer
sN\'lces mRY he counted as cost sharing or
matching If the scn'lce Is an Integral and
necessary part of an approved proJ.:ram,
(I) Rates lor lIollmtccr service.' ,-Rates for
volunteer!; Fihould be conststent.. \..'llh tho~c
paid for similar work In the reciplent's
organl,.atlon, In those Installces III which the
required skills are not. lound In lhe recipient.
orgalll,.ntlon. rates shoulel be cOllslstent. with
those pnlel for slmllnr work In the labor mar-
ket In which the recIpient competes for the
kind of ~cr"lccs lnvoh'cd.
(2) Voll/nlccrs ~mploycd by oULcr orga,,;-
zatio1L~.-\Vhcn nn crnploycr other than the
recipient furnishes the sen'lces of an em-
ployee. these services shall pc valued at the
employee's regular rate of pay (exelusl\'e of
frInge benefits and overhead costs) provIded
these servIces nre In the same skill for which
the employee lsnormnlly pnld,
b, Valuation 01 donated. cxpendablc per-
semal propert)/.-Dona\.ed, expendnble per-
sonnl property Includes such l!.ems as ex-
pendable equipment. omee supplies, laborn-
tory, supplies or workshop and clnssroom
supplies. Value assessed to expendable per-
sonal property Included In the cost or match.
lng' share should be reasonable nnd should
not exceed the 'market value of the property
at the time of the donatIon.
c. Valuation 01 donated. noncxpendable
personal property. buildings. and Ian<! or
"-'e thereo/.
(I) The method used for chargIng cost
sharIng or matching for donated nonex-
pend able personal property. buildings and
land mny dlfTer accordIng to the purpose of
the grant or other agreement as follows:
(a) If the purpose of the grant or other
agreement Is to assIst the recipIent In the
acquIsition of equipment, buildings or land.
the totlLl value 01 the dona\.ed property mal'
be claImed as cost sharIng or matchIng.
(b) If the purpose of the agreement Is to
support actlvl ties that requIre the use of
equipment. buildings or land. depreciation
or Use charges for equIpment and bulldlnr:s
may be made. The full value 01 equloment or
other capital assets "lid faIr rent,l chltTges
lor land may be allowed provided that the
Federal agency has approved the charges,
(2) The value 01 donated property wlll be
determined In accordance wIth the usual
accounting policies of the recipIent wIth the
.1ollowlng qualifications:
(a) Land and buildinQs,-The value of
donated land and bulldln'gs may not,exceed
Its fair market value. at the time of donaLlon
to the recipIent ILS establlshed by nn Inde-
pendent appraiser (e,g.. certIfied real prop-
erty appraIser or GSA repre~enta tlves) and
certlned by a responsIble offIcIal of the
recipient,
(b) NoneIpend.ablc pC1'sOTUlI p'-o'pertp ,-
The vl\lue of donated nonexpendable personal
property shall not exceed the lair market
value of equipment and propeny of the same
age and condition at the time of donation,
(c) Use 01 space-The value of donated
space shall not exceed the lair rental \'al1:e
of comparable space as established b\' an
Independent apprnlsal of companble ~pace
and facilities In n privately-owned building
In the same locality:'
(d) Loaned equipmcnt.-The \'alue 01
loaned equIpment shall not exceed Its fair
rentnl vnl\lc.
6, The followIng req\llrements pertain to
the reclplcnt's supportlng records lor In-
k1nd contributions frorn non-Federal thIrd
..., ~ -, ~ ",.
n. Volun1-pcr ~("r\'}cc~ nl\J~t. br. document.ed
alld, to the extellt fe,,-,ible, ~upported by the
sallle Illethods used by the recipient lor Its
employees,
b, The basis for determining the valuaUnn
for persOllal sen-Ices, material, equipment,
bulldlllgs and lnlld must be documented,
ATTACIIMeNT F,--CtRCULAR No. A-IlO
STANnhROS FOR FIN^NCIAL M.ANACEMENT
SYSTEMS
1. 1111s attac,hment prescrIbes standards for
(manclal management systems of recipients,
Federal ~ponsorlllg agcntles shall not Impose
ndc1itio-nnl standards on reclpienls unless spe-
cifically provided lor In the appllcable sta-
tutes (e,g.. the Joint PundlnJ; Simplification
Act. P,L, 93-510) or other attachments La this
circular, However. Federal sponsorIng agen-
cies are encouraged to make sug(:'estlons and
a~slst recipients In estballshlng or Improvln!;
fi nnnclal 11lan(\.gclncnt systems when 6uch o.s..
slstanc~ Is needed or reques\.ed.
2. ReCIpients' (manclal management sys-
tems shall provide for:
a. Accurate, current and complete dIsclo-
sure of the financla' results 01 each fedcrally
spon~ored project or program In accordance
with the reporting requirements set forth In
Att:,chment G to thIs circular. \\'l1en a Fed-
eraJ sponsorIng ngeney requires reporting on
an accrual basis. the recIpIent shall not be
required to establlsh an accr\la) accounting
s\'stem but shall develop such accrual data
for Its reports on the basis of an nnalysls of
the documentation on hand.
b. Records that Identlly adequately the
source and appllcatlon of funds for federall}-
sponsored actlvlt!es, These records shall con-
tain Inlonnatlon pertnlnln!; to Pederal
awards. authorIzation.. obl1gatlons. unobll-
gnted balances. assets, outlnys. and Income,
c. Effective ::ontrol over and accountability
for all funds, property and other nsse~s. Re-
cipients shall adequately safeguard all such'
assets and shall assure that they arc used
solel~' for authorized purposes.
d. Comparison of actual outlnys with bud-
get amounts for each grant or other agree-
ment. Whenever appropriate or required by
the Federal sponsoring agency.' financial In-
formation should be related La performance
and unit cost datn,
e. Procedures to mlnlml"e the tlme elapsing
between the transfer of funds from the U.S.
Treasury and the dlsbursemen t by the recip-
Ient. whenever funds are advanced by the
Federal Government. Vlhen advances .orc
, made by a letter-of -credIt method. the recip-
Ient shall make drawdov.-ns as close as pos-
sible to the time 01 making disbursements,
1. Procedures for determJnlng the reason-
ableness. allowablllty and allocability of costs
In accordance with the provisions or the ap-
pl1cable Federal cost principles and the terms
of the grant or other agreement,
!;, ACCountIng records that are supported
by source documentation,
h, Examinations In the form of audl!..s or
Internal audits, Such audits shall be made
by Qualified IndividualS who are sumclently
Independent a! those who autharize the ex-
penditure of Feder,al funds, to produce un-
biased opinions, conclusions or judg-ments.
Ther shall meet the Independence crlterln
along the lines of Chapter 3, Part 3 of the
U,S, General Accountln{; Omce publlcatlon.
Sl.andard~ for Audit 01 Governmental Organ-
I""tlons, Programs, Actl\'ltles and !"unctions.
TIlC~~ CX:lDlinationz nre 1nt.endcd to a..o:;ccr-
t..'l.ln the effecUveness of the flnn-nctnl mnn-
agen,cnt systelns ~nd }nternnl procednreS!
that havc been establl~hed to meet the terms
and conditions of the agreement.c:;. It 1s no\..
Intended t.hnt each ngrecmcnt awarded. to the
reclp\ent. be cxamJncd. Gcncrnlly. cxnmlnn-
Uo!)~ ~houlcl be conducted on an orr~nntzJ\.-
,,".''''' h....--I,. ~r\ ,........t 1h,., "<":,...",, ~",,,,~~~1,. ,...,f
I
A-110:3
flnanr.lnl transactions, "-' ,,'ell as compliance
with the terms and conditions 01 the FederaJ
gTP,nts and other agreements, Snch tc~Ls
would Includc an appropriate sampllng 01
Federal agreemenLs, Examinations will be
conducted with reasonable Ireqllency. on a
continuing bl\sls or at ~cheduled Intervals.
usually annuall)". bllt not le~s IrequenUy than
every \ wO years, The frequency of these ex-
aminations shall dcpend \lpon the natllre,
sl,.. and the complexity 01 the act\'lIt)', These
examinations do not relieve F'ccIeral agencies
of their audit. responslblllLles, bllt mal' afTect
t.he Irequency Bnd scopc of such audits.
\. A syst.emntlc method \0 assllre tlmely and
appropriate re~olutlon of audit findings and
recommendations,
3, Primary recipients shall require subre-
clplenls (I\S def1J1ed In paragraph 5 of the
l>Rslc circular) to adopt the standards In
paragraph 2, above exccpt for the require-
ment In ,subparagraph 2e, regarding the use'
01 the letter-aI-credit method and that part
01 ,:;ubpnragraph 2a. regarding reporLlng
forms and Irequencles prescrIbed In Attach-
men'. G to thls clrculnr.
ATTACHMeNT G,-ClaCULAR No, A-I] 0
rlNANCLAL RC'onTIN'C REQUIReMENTS
1. This attachment prescribes uniform re-
porting procedures for recipients to: sum-
marize expenditures made and Fcderal funds
unexpended for each award, report the status
of Federal cash advanced, request advances
and reimbursement when the letter-of-credlt
method Is not used; and promulgates stand-
art<, forms IncIdent thcreto,
2, The following definitions apply for pur-
poses 01 thls attachment:
a, Accrued expcnditure$,-ACCrued ex-
penditures are the charges Incurred by the
recipient during a glvcn period requiring the
provision 01 funds for: (I) goods and other
tangible property received; (2) scrvlces per-
formed by employees. contractors, subreclpl-
ents, and otber payees. and (3) other
amounts becoming owed under programs for
whIch no current services or performance 1.5
requIred,
b. Accrued incO'1'c.-Accrued Income Is the
sum of (I) earnings during a !;Iven perIod
from (I) servlces.performed by the recipi-
ent; and (II) goods and other tlU1glble
propeny dellvcred La purchasers; and (2)
amounts becoming o,,'ed to the recipient for
whll;,h no current sen-Ices or performance 15
reqUIred by the recIpient.
c. Federal lunds authorizcd,-FederaJ
funds authorized are the \nUll amount of
Federal funds obligated b)' the Pederal Gov-
ernment for use by the recipient, Thl.5
amount may Include any authorlzed carry-
over o! unobligated funds from prior fiscal
years when permItted by la \I' or agency
regulation.
d, In-kind contributio,,-,,-In-klnd COD-
trlbutlons are defined In Atl.Rchment E to
thlz circular.
e. Oblipations,-Obllgatlons arc the
amounts of orders placed, contracts and
grants awarded, servlccs received. and sImI-
lar transactions aurlng a gl\'en perlod that
"'ill require payment by the recipient during
the same or a future period,
L OuUa.vs,-Outlay~ or expenditures repre-
sent charges madc to the project or program,
Thcy may be reported on a cash or accrual
basis, For reports prepared Oil a casl1 basl5.
outlnys nre the sum of actual cash dlsburse-
mcnt.- for direct charges for goods and ser\'-
Iccs, the nmount of Indircct expcnse charged.
the vnlne 01 In-kind cOlllTlbuilOns applied.
and the amount of cash ad\'ances and pay-
ments made t.o subreclpients, For reports pre-
pared on nn accrual basis, oullRYs are the
!;\Im of Rclunl ensh dl~b\lrScment~ fOT direct
c.:})arl!cs for ~nods :\.nd !';c;\'lcC''s. the nmotlnt
n~ lndlrrort ,..:n"ll'p<:,(' Inr\Jrif'n n1~ \'n1\H' nf tn-
I
Office of Management and Budget Circular A-110 (7/30/76)
kind contrlbut.lons applied, and the net In-
crea.. .lor decre,,-,") In the amounts owed by
the recipient lor goods and other property
received, lor services perlormed by employ-
ees, contractors, subreclplenUl and other
payee. IInd other amounUl becoming owed
under programs lor which no current .erv-
Ic"" or perlormance are required.
g. Propram Income,-Program Income I.
defined In Attachment D 01 this circular. It
may be reported on a cMh or accrual bll.5ls,
whichever Is used lor reportlng outlay..
h, Unobligaled balance,~The unobligated
balance I. the portion of the funds author-
t:z;ed by the Federal spon!>Orlng agency that
h"" not been obligated by the recipient and Is
determined by deducting the cumulative
obllgatlons from tbe cumulatlve fund. aU-
thorized,
I. Unllqufdaled ob/fgatfon..,.~For reportll
prepared on a ca.h' bnsl.. unliquidated obll-
Fatlon. represent the'o.mount of obllgatlons
Incurred by the recipient that ha. not been
pl\ld, For reports prepared on an accrued ex-
penditure ba.sls. they represent the amount
01 obligations Incurred by the recipient tor
whlcb an outlay hll.5 not been recorded.
3, Only the following torms ..111 be au-
thorized for obtaining financial Inlormatlon
from reclplent5.
a. Ffn<lncial Statu3 Report (ExhIbIt 1).
(I) Each Federal sponsoring &gency shall
require reclplent5 to we the standardized
l"lnanclal StatuS Report to report the status
of lunds tor all nonconstructlon projects or
programs. The Federal sponsoring agencies'
may, tlowever, have the optlon ot not re-
quiring the F'1n..ncl..1 Status Report when
the Request tor Advance or Relmbu.rsement
(p..r..graph 4..) or Report of Fed era] Cll.5h
Transsctlons (paragraph 3b) Is determined
to provide adequate Intormatlon to meet
their needs, except that a final F'1nanclal
Status Report sh..ll be requtred at the com-
pletion, of the project when the Request tor
Adv..nce or Reimbursement form Is used onl}'
tor adv..nces,
(2) The Feder..1 spoll.'lorlng "Fency shall
prescribe whether the report sh..ll be on a
c""h or accrual basis. If the Feder..1 sponsor-
Ing ..gency requires ..ccru..l Inform..tlon and
the recipient's accounting records are not
normally kept on the accrual bll.5ls. the re-
cipient shall not be required to convert its
accounting system, but shall develop such
..ccrual InformatIon through best estimates
based on an analysis of the cocumentatlon
on hand,
(3) The Federal 'sponsoring agency shall
detcrmlne the frequency of the F'1nanclal
Status Report tor each projcc. or program
conslderln. the size and complexIty 01 the
p..rtlcular project or program. HowHer. the
report shall not be required more frequentl"
th&n quarterl)' or less frequently than ..n'-
nu&lI)' except as provided In subparagraph
3a (I) ..bon, A final report shall be required
at the completion of the agreement..
(4) Federal eponsorlng agencies shall re-
quire reclplent5 to submIt the FInanCial
Statu. Report (orlgln.1 and no more th.n
two cnples) 110 later thnn 30 days after the
end 01 each spccllled reportIng period lor
quarterly and scml-annu..l report.'. and 90
days lor annual and final reports, Extensions
to reportlnr: due dates may be granted upon
request of the recIpient,
b, Report 01 FedeTal C",..h TTansaetions
(Exhibit 2).
(I) v,'hen tunds are advanced to
reclplenl.8 through letters of credIt or wIth
Treasury checks. the Federal sponsoring
allencles shall require each recipient to .ub-
mlt a Rep~rt or l"ederal Cash Tr..nAACtlons,
The Federal sponsoring n!:ellcy eh..II u.e this
report to monItor cash advallced 1.0 recipients
..nd to obtAin dlsbursement'llllormatlon for
e..ch agreement from the reclplenl.8,
(2) Federal sponsoring agencies m..y reo
quIre forecasts or l"ederal c""h requirements
In the "Remarks" section of the report.
(3) Wh.n practIcal and deemed necessary,
the Federal sponsorlllg agencle. m&)" require
receipts to report In the "Remarks" .ectlon
the ..mount of cash Advances In excess 01
three days' requirements In the hnnds 01 sub-
recipients and to provide short narrntlve eX-
planat,lons of actIons taken by the recipIents
to red uce the excess bnlances,
(4) RecIpients sh..lI be required to submit
not m~re than the orlr:lnal and twO copies of
the Report of Federal Cash Transactloru; ] 5
working days following the end of each
quarter. The Federal sponsoring agencies
may requIre [l monthly report Irom those
recipients receiving advan.:es totaling II
million or more per yeu.
(5) Federal sponsoring agencies mal' waive
the requtrement for submission of the Report
of Federal Cash Transactions when monthly
ad,'ances 10 not exceed lIO.OOO per recipient,
provided that such advanc... are monitored
through other forms contained In_Jhls ..t-
ta.chment, or It. In tbe Federal sponsorIng
llr:ency's opinion. the reclplent's accounting
controls Me adequate to mInimize excessive
Feder:>.1 advances,
4. Except as noted below, only the follow-
Ing forms will be authorized for the reclpl-
en~3 In requesting advances and relmbur....
ments,
&, Reque3f lOT ....dvance OT Reimbursement
(Exhibit J).
(I) Each Feder..l sponsorlnr: agency shall
adopt the Request lor Advance or ReImburse-
ment as a standardized form for all noncon-
structlon programs when letters-ol-credlt or
predetermined advance methods are not used,
Federal sponsoring agencies. howe,'er. ha \'C
the optIon of using this lorm lor construc-
lion prograrn.s In lieu of the Outla)' Report
..nd Re~uest for Relmburseme:lt lor Con-
structIon Programs (subparagraph 4b).
(2) RecIpIents shall be ..uthorlzed to sub-
mit. requests for a.dvances and re'mburse-
ments at least monthly when leUers-ot-
credit ..re not used. Federal sponsoring
agencies shall not requIre the 5ubml!"s10n o!
more than the orlt;1nal and two copies of the
Request lor Advance or Relmbu,-sement,
,
A-110:4
b, Outlay Teport and request lOT Teim.
bllr.H~tllCl1t JOT construction progranLS (Ez-
hi bit 4),
(I) EReh Federal "pOnfoOrln!: abene)' sh"ll
.dopt the Outla)' Report and Reqllest for Re-
Imbursement for Construction Programs as
the sta.ndardl2-ed lormat to be u.ed lor re-
questing reimbursement lor constructlon
programs, The l"edeml sponsoring ngellcles
may, however, h..ve the optIon 01 substltut-
Ing the Request lor Advance or Reimburse-
ment Form (subparagraph 4a) when the
Federal agencies determine th..t It prOVlde5
nrlequate Informl\tlon to meet their needs,
(2) Recipients shnll be ..uthorl2-ed to sub-
mit requests :or reimbursement fit lCllSt
monthly when letters-ol-credlt Me not used,
l"eoer..l sponsorlnb' agencies shall not require
more than the orlglnal and two copies of the
Outl,,)' Report and Request lor Reimburse-
ment for Construction Prograrn.s,
5, When the Federal sponsoring agencies
need additional Inlormatlon In using these
lorms or mOTe Irequent re.ports, the loll owing
sh&11 be observed:
. a. Whcn additional lnlorml\tlon Is needed
to compl)' .....Ith lcglslntlve requirements.
Federal sponsoring ngencles shall Issue In-
structions to requIre recipients to submit
such Information under the "Remarks" sec-
tion of the report.',
b, When necessnry to meet specific pro-
gnm needs Federal sponsoring agencies shall
submit the proposed reporting requirements
to the Flnnnclal MAnagement Branch, Budget
Review Division, Omce of Manacement and
Budget for approval prior to submission of
the reports for clC"-Tance under the pro-
visions 01 OMB Circular No, A-40,
c. When a Federal sponsoring agenc)' has
determined that" reclplenl's accountlng eys-
tern does not meet the StllJ1dards lor Fl-
nancl~1 Manageme:1t contained In Att..ch.
ment F to this circular. additional pertinent
Inlormatlon to luIther monItor grants and
other agreements may be obtained upon
written notice to the recIpient untll such
time as the sy~tem Is brought up to stnndard,
d, The Federal sponsoring agency, In ob-
taining Inlormatlon as In pl\Tagr..phs a, b
and c above. mus' comply "..Ith repor'. clear-
I\nce requtremer.ts of the Omce 01 Manage-
ment and Budget Circular No, A-40. as re-
vised,
6, Feder..1 sponsoring agencIes have the
option of shading out any line Item on any
report thnt Is unnecessar)' lor decision-mak-
Ing purposes,
i: Federal sponsoring agencle: should ac-
ccpt the Identical Inlormatlon from the re-
c!!>lents In machine usablc format ~ com-
puter printouts In lieu of prescribed formats,
B. Federal sponsorln. agencle:; may pro-
vide com!>uter outputs to reCipients when It
".-Ill expedite or contribute to the ..ccurac)'
01 reportinG,
g, Federal sponsoring agencies are author-
17,ed to reproduce these forms, The lorms lor
reprod \Jctlon 'Purposes can be obta !ned from
the OtTlce of Man3-b'ement and Budget,
I I
Office of Management and Budget Circular A-110 (7/30/76) A-110:5
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Office of Management and Budget Circular A-110 (7/30/76)
INSTRUCTIONS
Ple.se tyP<' or print legibly,llems 1,2,3.6,7.9, IOd, lOe. 109, 10i, 101. lla, .nd 12 are self.explanatory,
sP<'cific instruclion~ tor other items are a~ 10110"5:
/"... E.lry
[ntH the empl~er Identification number .ulpned by
the ~U.S. Int.mtll R"",pnur S~rvice or nCE (innih1\ion)
eode. If requir.d by 'h, Fe-deral ,potls,oung .pency.
Thlt !IpeCl! II ,...,..~ tor en account num~' or othrr
identltyln&: number, thet may be .ssirnPd by the
rt<ipient.
Ent.r the month, dllY. end YU' of the ~,,"nlnr .nd
rndina of this proJKt penod.- rOf formul" !,anu th.t
ur not eWllorded on II proJect b,nis, shOw th. gnnt
po nod,
10 The purpo,.4l of vertlce! columnl (e) through (1) Is to
provide fl"ancia' date tor uch p'o~rem. tUnc\lon, end
1Ic1lvity in the budget as .Bppro"e-d by the Fedenllpon.
sorln~ 'renC')'. II edditional columns lire nee~f'd. use U
meny ad<lltlonel form) a, nM<led end Indlc~1e pege
number 'n spece provided In up'per ripht: however, the
tOhlls of ell prOg'Tllms, tunctlons or ectivltles should be
IhO'o'fn in column (g) of the flrst pagt.. For eflr..ements
p.er1.elnlnG to uverel Catlllot of Federel Domestic
Auishnc. proirllms thet do not reQul", e further
funetlonal or ec1lvtty tlnslflClltion breakdO'WTl.. enter
under column) (a) throUEh (f) the title ot the program.
For grents or other euistanCII! altrMments containing
muhlple prorrllms where ont' or more prOQ'rems AQulre
e further breekdown by function or Ictlvlty, use e
upente to"" for e.ch prognlm Ihowin; the epplicable
tunctlons or ectivttin In the ICpllrete columns. for
$:mnts or other euistence l~reemenU contlining s"v.
erel functions or ecHvlties which Ire tunded trom
5-8'V'e'1ll1 progrllm!.. pr-epue . 'Sep.rate torm tot eath
activity or tunctton when requested by the feCeu:
a.pons.oting aseney.
lOa E.nter the net outlay. This amount sMuld' bt the semf:
as the emount repOrted In Line 10e 01 the last re~"'~.
If the~ hn beoen an edJus:ment to the amount shown
pteV~usJy. pleut .ttllch expllnation. ShO\ilt' zero If this
Is the Initial report. .
lOb Enter the to\el 'f"()e:S program outleys (less rebe1e-i.
retunds, and other discounts) tor this report peri~.
tncludlnE dlsbursem.nh 01 cuh realized as progt"!.m
income.. FO(' reports 1N! ere plepllr'e'd on lush
b2!1~, outlays are the sum of actual cas.h disbun~.
mrT':'~ tor ~oods and urvices, tht amount of Indirect
expense chul~ed, the value o! In. kind contributions
epplie~. Ilne: the amount of c15sh adV8nC~5 and
p:eyments mil de to contrac1or:s end subg~nltt5. For
relX)rts pr~pe~ or. an accrued eXPE'nditure basis, otJ1..
11I~"1 ere the- sum of actual clsh di!bu~ement5. the
Ilmount of InellryC1 expense incurred. - the vllue of In-
kind contributions applie<:. end the ne~ IncreBSe- (or
oecrease) in tnt amounts o~ by the recipient tor
Foods Ilocl other propertv received and tor aervices
per10nned by employees, contMlctors, ,ubR'rantees, and
other payetrS.
/"... E.lry
1Oe: [nt~r the .mount 01 all "'fogr"m Income reallle-d In
this period thllt is rr-Quirr<l try the ttrm, find con.
ditlons 01 the Feder,,1 ,ward to be Oeduct~d from to\1I1
pt('l,rct cosu. rOf report5 prf':nll,ed on a cuh basis,
enl'" Ihe IImounl of cesh inc{'me rectiv.d (juring thl!
r-eportlnE Pf',iod. For report' prepere<l on en eccnllll
balis. enler tht amount, 01 Income ~arnf!'d since the
~lIinnini 0' the reponinr period. Wlun the tf'rms or
condilions ",lIow prollrem Income to bt lidded 10 the
tOlel IIwll.rd. lI.plain In remerkt.. the source, emount
and (jisposition 01 the Income.
101 Enter amount pertlllnlng to th~ non.Fr-derlll share of
prOtl'rllm outlers Includ.d In the amount .~P line t..
10h Enter total Ilmount of unliqulCIlIf"d obligations for this
project or pro~rllm. including unliould"t~ obli@'lltions
to sU'b~""ntees. ftnd contrectors. UnliQuiClIled oblig".
tions art.:
CIISh bul!o--Oblilletions Incurred but not .pllid;
Accrued f'xPt"nditurf' bui,,---obli68tions Incur~ but
tor which. an oullay ha, not been ~cordr<l.
Do not include Ilny amounts that heve b<een Includf!'d
on linn a thrCourh S". On the Ilnlll repon. line h should
have e Jero b6ll1nct..
101 Enler the FedeMll ,hllrf' of unliQuidated obliglltlons
,hown on line h. The amount shown on this line should
be the di"erence between the 6fnounts on lines h and I.
10k Entllr the sum of the amount~ sMown on lines € end J.
II the report Is flnlll the report Should not conti in any
unliquldlln-d obligations.
10m Enter the unobllg.tf"<1 balllnce of Fedf'r'Bl tund~. This
emount should be the dlf1erence. between lines k and I.
lIb Enter rate In el1ect durtn6 the reporting period.
llc Enhr amount of the bas.e to which the r21le was epplied.
lId Enter tot,,1 8mount 01 indirect col1 chelied during the
repon p.eriod.
I h Enter amounl of the Federal shere charge<! during the
repol": perioe.
If mo~ then one rate was lSPplied during the projKt
perioc:, incluOe I scp.eril\t S,CheOUlt showin, bUes
.geinst which Iht IndlreC1 cost retes were applied, tht
respective Indirect rate-s the month. OilY. anG yel'r the
indl~ tat~ were In en ec:. , 8mounts of indlr'e'Ct u.
penn charped to Ihe project. IInd the Fede-ral share of
indirect ex:pen,e cherged to the project to date.
A-110:6
"
I
I
Office of Management and Budget Circular A.110 (7/30/76)
A-110:7
Approved by Office of Mana<<ement and Budget. t-lo. 80-RO) 82
FEDERAL CASH TRANSACTIONS REPORT 1- rtodrul 'fWW'tJoOrin, "HK)' Ind or'U1iutionl1 .I.,..."t '0 ..~ick lhi, "port
is t1ubm.h.d
(See in.~trudian8 on the ba<.k. If report i.. for mor~ than one gran t or
a.<:8istance agreement, atLach completed Standard Form !7~-A.)
2. RECIPIENT ORGANIZATION .. r .d......l rnnl or a(~.. id."tilica . 5. RKipi.nt'. KC'OUftt ...,mDtr "'
lion ..umber lo",lityi", flumMr
Nome : r.. laU.,. of u.dit PlU",ber 7. lu1 .-,,,,.,..1 '.CHIC".' MI~bw
NtH"'''''''' Gille total number for this period
aftod. SLrllrl :
8. Paymtnl Vouch"n cred,'", I. 9. lrMJury chtC;' rt<lincl (w.JM.fh tr
)'OUr account (J'1' 7\Ot dt.po.,tt.d)
Ci1~. S14t. 10. PERIOD COVERED BY THIS REPORT
.nd ZIT' Cod.:
3. FEDERAL EMPLOYER ~ FROM ("'0,,'1\. ci.a.... "'lIOr) TO ("'O"t"'. do~ ",cor)
IDENTIFICATION NO.
a. Cash on hand beginning 01 reporting period $
..-
b. Letter 01 credit withdrawals
c. Treasury check payments
II. STATUS OF
FEDERAL d. T ota I recei pts (Sum of lines b and c)
CASH e. Total cash available (Sum of lines aflnd d)
1. Gross disbu~ements
(See specific g. Federal share of program income
instructicm.~
on the back) h. Net disburse~nts (Line 1 minus line p)
i. Adjustments 01 prior periods
j. Cash on hand end of period $
12. THE A\10UNT SHOWN 13. OTHER INFORMATION
ON LINE llJ. ABOVE,
REPRESENTS CASH RE. a. Interest income
QUIREMENTS FOR THE $
ENS UING
Davs b. Advances to subgrantees or subcontracto~ $
.
14. REMARKS (A ttach cuidit.ional sheets 01 plain paper, il more space is required)
15.
I certify to the best of mv I
knowledge and belief that AUTHORIZED
this report is true in all reo
spects and that all dlsburse'l CERTIFYING
ments have been made for
the purpose and conditions j OFFICIAL
of the grant or agreement
THIS SPACE FOR AGENCY USE
CERTIFICATION
SIGNATURE
DATE REPORT SUBMITTED
TYPED OR. PRINTED NAME AND TITLE
(tl r... C...u)
(Nvmb.f')
(EzL.....i.o")
TELEPHONE
272-101
EXHIB IT 2
STANDARO rORM 272 (7-76)
r.,.....,.....ir.-1 hv nfofir.. "f ~.nl"\F'~m.nt "nd Fiud,;>e1
I
I
Office of Management and Budget Circular A-110 (7/30/76)
A-110:8
INSTRUCTIONS
Pletl~. type or print legibly. Items I, 2, 8, 9, 10, lId, lIe, lIh, and 15 are self explanatory, specific
Instructions for other Items are as follows:
1 '--'
E71try
3
Enter employer iOentification number Ilsstgned by the
U.S. Internlll RevQ>{lue Service or the fleE (institution)
code.
If this report covers mort then one gfllnt or other
agreement, ~IlV' Items 4 and 5 blllnk Ilnd provide the
intormlltlon on Standard Form 272-A, Report of Fed.
erel Cllsh Tfllnuctio".--contin<Jed; otherwi~;
4
Enter Fede rll I grllnt number, Ilgreement number, or
oth.r Identifyinll numbers if requested by sponsoring
agency.
5
This spllce reserved for an Ilccount number or other
Identifying num~r thllt may be auigned by the re-
cipient.
6
Entei" the letter of credit number that Ilpplles to this
report. If IlII Ildvances were mllde by Trellsury check,
enter "NA" for not IlppliQlble and leave Items 7 and 8
~nk.
7
Ent.r the voucher number of the lut letter.of.credit
peyment voucher (Form TUS 5401) that was credited
to your account.
111
Enter the total amount of Fedeflll cllsh on hand at the
bel1innlng of the reporting period Including all of the
Federal funds on deposit, Imprut funds. and und~
posited Treasury checks.
lIb
Enter tobl amount of Federi" funds r..ceived through
Dl'yment vouche-n (Form TUS 5401) that were credo
Ited to your accovnt during the reporting period.
lIc
EM+f the total emount of all Feder&! funds received
during the reportin(' period through Treasury checks,
....netn.. or not d~ted.
111
E..te( the ~al Fe<l-enll c.nh dhbUfSeiTlents, made
during tn. ~ ~, mcludlng cllSh receiv.d
H Pf'09nlm ln~, Disbursements as usee here also
Includ. the amolJM of advances and P!lyments Ies5
munds to SUbgPll"tMS or 00 "traetors, the iross
amount cr. dif9Ct ulariK and ~K, includini the
Eft try
Hem
emplopee's share of benefits If treeted as a direct cost,
interdepartmenti\1 charge~ for supplies and services,
and the amount to which the recipient is entitled for
Indirect costs.
IIi Enter the Federal shere of program income that was
required to be used on the project or program by the
tums of the grant or egreelTl,~nt.
11 i
Enter the emount of all adjustments pertllining to prior
periods affecting the ending balance that hllve not
been included in any lines above. Identify each grant or
811reernent for which edjustment was made, and enter
an explanation for Mch adjustment under "Remarks."
Use plain sheets of paper If additional space is required.
11j
Enter the total amount of Federal cash on hand at the
end of the reporting period. This amount should include
all funds on deposit, imprest funds, Ilnd undepos.ited
funds (line e, less line h, plus or minus line I).
12
Enter the estimllted number of days until the cash on
hand, shown on line 11J, will be expend&d. If more than
three days cash reqirements are on hand, provide an
explanation under "Remarks" as to why the drawdown
W8S made premeturety, or other reasons for the excess
cash. The requirement for the explanation does not
apply to presl;heduled or automatic advances.
13a
Enter the amount of Interest eerned on advances of
Federal klnds but not remitted to the Federal agency.
If this Includes eny amount ellrned and not remitted to
the Federlll sponsorincegency for over 60 days, explein
under "Remarks." Do not report int&rest earn&d on
udvancBs to Stllt~.
13b
Enter amount of advllnce to secondary recipients in.
cluded in item 11 h.
..
14
In addition to providing explenatlons es required above,
,iw additionel explarwttion cleemed n.cesury by the
reeipt.nt and for in~tion requir&d by the Federel
sponsoring egency in compliance with governing legis'
I"tion. Use plein sheets of paper If additional spaC1l is
required.
~
I
I
Office of Management and Budget Circular A.110 (7/30176)
A-110:9
FEDERAL CASH TRANSACTIONS REPORT
CONTINUATION
ITh. fO'Tm.. re>mplttrd and alLa~hrd to Sla..w.rd Frrm HI only when
f"f'pcwtinO mD1"'f' fh~n tmI pro_n.( or C1~tlUit(1n..cc aprU'm.ent.)
2. RECIPIENT ORGANIZATION (Gi". "am<! oraly a.. .houm in il.m t, SF
171)
'Approved by OHlce 01 Management ane Bud....,. No.
SO_R01S,
1. fEDERAL SPONSORING AGENCY ~ND ORGANIZA,
TIONAL ELEMENT TO WHICH TH~ REPORT IS SUB,
MinED
3. PERIOD COVERUl BY THIS REl'ORT IA. .h""," on SF
t7t)
FROM (~OralJ,. ..,. ..-..)
TO (H__I\, M,. ._d
4. lisl information below for each R'rent or other Isreement covued by this, report. Use addItional forms if more space is reQuired.
FEDERAL CRANT DR OTHER IOENTIF I RECIPIENT ACCOUNT NUMBER FEDERAL SI1ARE Of NET DISBURSEMENTS
CA liON OR OTH[R
IDEHTIr'YINC NUMBER N(1 DISBURS(M(NTS U;....., CUMULATlV[
['Show 0. ~ubd'vUw1L bv other idtnLi. ~t.o"r....,..I' ,.., "I'CI"o'.'" ,_ NET DISBURSEM[NTS
trmp nllmber. if ...equ..ir,d bV tho c:ro.... ....(".-i.,..1) FOR RePORTING
F .el...aLSp""".",np ,J\ p.n~) PEAIOD
10\ Ibl 1<1 (el)
$ $
"
,
.
.
I .
...
'.
I
I
I
~. TOTALS (ShDuLd c~upO"J'Li. with c."'-Ounv flh.own (In SF ~7f ~ j
follow!: column (~J tfuo. 8Q.Tr".( c...1 lint 11ft: co/u:m.n fd) the .11m of lines
l~~ ;;d ~ti. (l(~~~~5 .;F ~~! ~n.d eta7tul~.ti\l(' Qisbu,."tmMlt5 ~hown on I
p .A
,. r :.o.hc'n of c.r..v a1f.~reJ1Lu..)
I $
,$
,
STANDARD FORM 272-10 (7.)61
Pr..nlt..d t'.. Ollie.. l:'f l..\!lnoC'..m--.' .{rId 6"do,",1
272-201
Office of Management and Budlet Circular A-110 (7/30/76)
I
REQUEST FOR ADVANCE
OR REIMBURSEMENT
Approved by Office of Manalfement and
Budget. No, llG-RO 1 B3
PAGE
0'
.. "C'........ llo.tA .....
o ADVANCE 0 ~~:TBURS[.
b. ..~.. .... .,.~a. be.
PAGES
2. BASIS OF R~QUEST
o CASH
I.
TYPE or
PAYMENT
REQUESTED
(Su tutructioM Oft. back)
J. fEDERAL SPONSORING AGENCY AND ORGANIZATIONAL ElEMENT TO
WHICH THIS REPORT IS SUBM,nED
o FINAL
4. FEDERAL GRANT OR OTHER
IOENT,rrING NUMBER ASSIGNED
BV rEOERAL AGENCY
o PARTIAL 0 ACCRUAL
~ PARTIAL PAYMENT R(QU~
HUMSER FOR THIS REQUEST
6. EMPLOYER IOEHTlflCAnON
HUMSE,.
7. RECJPIENrS ACCOUNT NUMBER
OR IDENTIFYING HUMBER
B. PERIOD COVERED BY THIS RE UEST
fROM (..,.1". M'. ....r) TO t.....u.. ..... ..-.-)
.. RECIPIENT ORGANIZATION
10. PAVE (WM...\aQ..... H _I v","'", ..... ...... I)
N._
N....
N......
.... .cullt
N_'"
~"'''Mf
c.... It.....
.tWI ZIP C.....:
C~..8tal'.
"..wI ZI/fl;od. :
11. COMPUTATION OF AMOUNT OF REIMBURSEMEHTS/ADYANCES REOUESTED ...
(II) (h) (e)
,
PROGAAMl/FUNCTfOHS/ACTIVITIU ~ TOTAl
I. Totll PrDllram (A, 01 dct.)
outlay. to dele $ $ $ $
b. LA".: CumwlatMt Df'ORram income
e. :: f)'F"m outlllY' (Lmc II .........
d. EstImated net cash outl.yolO< advlncl
perlod
.. T"'-' (S."n .//WI., . of: 11)
f. Hon.federel Mere of amount on "n_ .
~. Federaf ,hare of amount on line I
h. Foderal plymonts previously requasted -.
I. Fed"",' shl" I>OW requ..ted (U... /I
......... Ii... Il)
j. """""cas required by lot month
month, whon raqu..ted
by Foderal erantor Igoney
tor UN in makin. pre- 2nd month
Khoedwl<<l advencec
3n1 month
12.
AlnRHATE COMPUTATlON FOR ADVANCES ONLY
I. UU....,ed Federa' cash outllY' th.t will be mlde dun.. penod COVO<1lCl by tho l<lvlnce
$
b. La.: Estimated balance of Federal cash on hand a. of ber8inning of ad....nca period
e. Amount raquatoled (U... II ""-.. Ii"" b)
U.
$
CElfTI~ION
SICNI\TUR[ or AUTHORIZEO C~T1f'YINO O""CIAl,.
DATE "EQUaT
SUBMITTEO
I certtfy thet '" tho beot 01 my h,,,,wiedre
aM belie' the date .bow are correct and
that all outlays were made in accord.~
with the Rnllnt conditions or other 81,,"0
"'I..t .nd that peyment is due and hi. not
-., prwlously raquatoled,
TYPED OR. ~IHT[D NAME AHD TITLE
A_ Co4o
H_~_
...............
Tn.E~OHE
ThIs opKe 10<.......,._
.70-101 EXHIBIT 3
ITAltfDARD P'OIIIII 270 (7-76)
"""Kf1bed by Offtee of M."..."...nt .nd aucleet
CIRCuLAR NO. .0..110
Federal Grants MllMQement Handbook September 1978
A-110:10
..
Appendix I
I
I
Office of Management and Budget Circular A~110 (7/30/76)
INSTRUCTIONS
Please type or print legibly, Items 1, 3. 5, 9,10, lie, lie, Ill, Ilg, Iii, 12 and 13 are sell-explanatory;
specific instructions for other items are as 10110ws:
Itc-m E",''lI
Indic.te wheth~r reQuest is prepared on ush or Ie'
crueod e.penditure bUIs._ All requuts for advances
shall ~ prepere-d on I cash balis.
[nler the fe-deral I,ant number, or olhf'r identityi"i
number n..signe-d by th~ 'federel UlOnloring leene)'. If
tht edvence or relmbu,.,ement is for more. than on.
grtlnt or other .i'rH:~nl. .nsert N/~; then, ,how the
ISljre,ate amounts. On I ~p.ra't .hetl, list ..ch
rrent or .greement number IInd the Feder.l ,h"e of
outlays made .gain,. the I,ant or agrH'fflenl.
6 Enter thl employer identihc.tton num~r usirned by
the U.S. Intern,l Rf'Yenue s,.rvice. or the riCE (institu-
lion) code II rPQuffied by the federal arency.
This Ipec. is rnerve-d tor en account number or other
h,.ntifyinC numbeor that mey bt essiRned by the
re("ipient.
8 Enter the month, dey, end yeer for the beginning end
ending of th~ ptonod coyrre<! in this request. If thl ,....
Qutn is. for en eO"ence or tor both an ad"ance- end r..
imbursement, shOw tht period that the ad"8nce "",;U
coYer. If the r.quest Is tor reimbun.ement. show the
potriod tor which the reimbursement is request.d.
Note: The Fede,.,,1 spon50rinR agencies hay. the option of
requiring f"'Kipi.-nts to complete Items 11 O'r 12.. but not
both. Item 12 Ihou'd be Ul-ed wh!l'f'l only e minimum
amount o( intonnetion is nee-6ed to make IIn advenc!
and outlay intormahon centAined In Item II ten boe
obtain.d In a timely manner from other report...
11 The purpoae ef the vHtkel columns (a). (b), and (c), is
to' provide ,pece ler aepereh cost b~ekCown, wtlen I
project has been plenn.o end bwd@eted by pr08'~ni,
function, er lIClivity. 11 lIdditionlll columns are net'ded,
1t.t'T7\ E'rttry
usr as. many additlanal forms as ne-e<lrd and indic.etr
page number in space proviOeod in upper right how-
eYer, the lummery to'llls of all programs. functio'li,
or .cti\lities Should be shown in the "lOUI" column on
the first paRe.
1 h Enter in "u 01 dele", the month, day, end year of th~
ending 01 the accounting period to W'hit't'l this amount
applies.. Enlrr program oullays to dalt ".et 01 rrtund~,
reDelft. end discounts), in the eppropnllte calumns.
for requests prepared on a ush buis, ouUays .n~ the
lum 0' actuel cash dis.burwmenu tOf roods end s.erv.
ke-s, the amounl 01 indired e.pens.es cha",ed. the
".Iue of in.kind COI'ltribuliOt:'.s applied, end the amount
01 clllh advances and payments mede to subcantnlic-
tors and sUbr~ipieflts. for ~ursts preperl!'d on an
accrued eJ:PflndilUre basis.. ou1lllY' are the s.um of tht
actual cash dis.buf'1.~m.nts. thl: Amount af Indired es:.
prnses incurred, and the net lnerras.e (or decreas.e) In
th~ ..mounts owed by th. reciptent 10' ~oodl. end Dthef
prope>rty recei"cd and fOf "ervice-s P":'r-'or1T\.e'd by em.
~oyees, contl"llcts, subgrantees and other paYMS.
11 b (nl" the cumulati"e cash income received to dale. H
rC'Qunts er. pre-pared on a cash bui,. For reQue-st1
prepar.-d en an acen.-d ellpo&ndttur\l bas.is, enter the
cumuleUye income eemed to dete. UndC!'( .tth_r besi~,
e-nter enly the amaunt applieeble to progT'1lIm income
that wes required to be Uled for the project or pro-
I'am by the 'erms of the gf1lnt ar other Igre-ement.
11 d Only when making rflQuesh for edwnce peym.nts..
.nter the tatBI es1imated emount ot cas.h outlays th3t
wUl be made durin" the period cov"~ by the ad".nc..
13 Complete the certification before wbmit1ing this
reQuest.
A-110:11
'\
I I
.
Office of Management and Budget Circular A-110 (7/30/76)
ApPf"Ov~d by Office of Mene,emen\ end ~"'GE
OUTLAY REPORT AND REQUEST FOR REIMBURSE. Budin, No, 8o-RO )81
MENT FOR CONSTRUCTION PROGRAMS 1. T'Y,,( 0' "[QU(Sl 2.. ~A.SIS or R[
(S., in,fnuttO'ft.l Oft bo.ck) o nN"l o PAATlAL o CASH
J. f[D[RAl SP'ONSORINQ AGENCT AND ORClAHlZATlONAL lLU.l(.HT TO 4. f[O[RAl CRAHT Ofl OTHER So. P.."RHAL. "AY~
WHICH THI! A[PORT IS SUBM,nEO IDENTIfYING HU"'lIf" ASo.$ICHEO
BY ([,O[RAL ACUIjCT
L ~~~'eO["'A(" IO[NTlnCATtON 17. .'ClrI[HT ACCOUHT O. OTH[O "1100 to'ID'Ul n ncn alP"Cl<<T
IDENTIn-tNO NUt.C8[Jl
'11I:0" tllf-.u..., ~.. ..-1 TO l"...u.. ....
to lIlte'''I[.HT ORGANIZATlOH lG. ,.Aft.[ IM......~~~.......,U~......u.-
N._ , N_ ,
H.. ....J N.. -.I.
....- , ....... ,
Cu.. OLI..,
"...." .-..1 .!J1....t ..J
J:lr Clwh: liP C....:
II. STATUS OF F1JN[)5
PROG R"MS-FU N ClION s--.o.CT 'V, T I (S
CLASSlrlC"T10N (a) (b) (e)
.."
I. AdminlstralN-e expenu S S S S
b, Prellmlnll')' eI,penw
c. LlInd. structures, rigtlt-of-wl)' I I
d. ArchitedunJl ensine-ering betiC f~ I I
.. Other erchltecturBI engineering 'eel I
, I I , I
f. Project In"pectio" feon
i. und development I I I
h. ReloceUon .xpens.e I I
I. Relocation PlIynients to Indlvldueb end I I I
businesses
), Dementlon and ~mOVll I I . I I
k, Constn.Jction and project Improvement I I I I
cost
I. Eauipl'T'l'ent I I I I
m. Misce-lIaneous cost I I I I
n. Tot.l cumullltive to dete (sum o'"linC"l I I
I IhN m)
o. Deductions for program income I I
i
p, ~el cumulative to date (Line n minus I I I
hne o) .
Q, FeO"rel share to datt ! I I i
I
r. Rehabilitation ,renh (100% reim'l I ! I
bursement)
., lou! Federal shue (sum of lines (I I I I I
and r)
t. Federal payments pr~viously ,.., I I I I
Quested I !
I
u. Amount ~oue-sted tor rr-imbun.emen' ,~ 1$ Is Is
,-
v. Percentage of phYSical complnion of I I %1
pn:>je:t . % %
12. CERTIFICATION 'ICNATUR( OF AV'THOAIZ(O CEFlllrYlNC , OAT[ or
OF"ICI....1.. SUB""'ITI
1 cenity the' to the best of my knowle<!ge
end belief the bjll~ costs or disbune. e, RECIPIENT
I ","PeO 0' r"HHo N""" "HO TIlL( I T(L("HO
menl, Ue in accordal')ce with the tc-nTlS ........~
01 th!: project IInd that the- ",irnbursernent
represents th!' Federal shere due which SIONATUR[ OF AVTHORIIED CU~lInINC I om SIC
h.. not been previously reQuested end OFFlCIA.l.
that an inspection has t>t'en per10rmed C. Represf'ntativ!'
and ell work is In accordance with the cenityl"E to line
llv. TYPED OR PRINT(O NA.Ioo4E AND TlTL( I T(L(PHO
hrm, or the e.......-ard. ...-..to..
" 1-101 ,
EXHIBIT t SiAHOj.,RO rOflt.l 771 (7-76;
,.,....-,'~,.I" t.~' (It'!'C_ "l I.o\.~.~
or
f""'O[!
QUUT
o ACClltUAl
(.NT Rf.QUESl HO.
_I
.... 'J
TOT"L
%
ro.T
[0
N[ loA.- .........
.... _'-""""'1
H[O
N[ IA.._ e~
.... _-.-.. J
"",.~.n('! f\.<Jrt..-'I
A-110:12
,
I
I
Office of Mamlgement and Budget Circular A-110 (7/30/76)
INSTRUCTIONS
Pie"... type Of print IRglbly. 1\"",.3, <I. 5, 8, 9, 10. 1 h. lIod llv lire ""II ,,,-,,pllln.'llory; specific instructions
for olhar Item..... as lollOW'l:
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This 'JMV. k ~ ~ an acoount. numb. eM" e4'hef'
~ntttylne ,n."'" thet me)' .... ._",n.4 br th4:
~ont.
II Tho ~ O<f _I _m... pI 'hrt>Uf/ll (clio to
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"'lie' p~ h... ......, "..,...... .fWII ~.ct Py ,......
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. eumu.......... be'"
lu In_ am.u,.. .....oded J.,,.,,.h ~s M~. ~I
....... .-..m..1. of wnldec and .... """' 8dmlnf~trw
-,........... ~. .... .",....ne 0( -.nt.r.c. ~
....n." .~ by prog,...... ~Mw\. AJ4"e .how
tiM amount -< ~ ....,.... eoft . ..pe,.. ~
11. ...... _ ~"Ini .. .... __ 01 -;"C .nd
-'~nl. waeD"'t SoU,....,.... ...wI ""'ps.. .,;"ktnC ....c.
~I..s.. and .. ~ work. ,....,u.1"'eId prior to acllNel
...~ ~LIIl.
1 h ~ ." ."'-"'" di-=tty __ wtIt1 u.. ........
~ - ~nd. ...."C s:tf'\lClW,.. an4 r.w.ted ri.6t'J(o()(.
.-.
I kI ~ _ _ .... _ M _,.h~-.rol onB'~
11. Em.r""".r ~tt.ctu,..f "'~n,g ~. 00 not
tnciuo. ....... ....-..ut:ft3 ........ .... at"" 4.
III l_~. _ _ ... 01 ....__ ....,
....- ~
Ill' l-MC____""'h___oI
~ wt\en tn. ~ """"P'O'W of nw r-anoc it: ..ftd
~_. Tho __ ~in;"C... Iond_
~ "'~ .......o..te.d ""","h "'-;0... c-"'ICtruction
~ .. ..ow... ~ '""- "'-Woty eond _menld on
Il...k.
II> lnM<____...~_
~........... ....0: -< c::Inb ~ ~r.( ....,....
""c: ttHt .....ort}. 00 rtOt iftc'h.ld. ...-.aunts. ......cIed tor"
~ton ac:tminiwtl'Wtiwow ..".....~ theIl4 .rnowna
~ b.- Nr.d...e..4 i.Il ~............ on AIM a.
J Ii f.m.er ~. .1'ftOtJn( -' ~~ pr."""'",b ~ .". VIII.
~ip~ k> lIispUN(f ~"'. '.I'TI'N., busi"'-S. con-
cerns, ancj nonP""OJ( orrantz.tj~,
I..... '.......
III [ntH ~ ...h.,irs ....cS ~ O'f "",.,toy..... of the
Nd~ end ,...~ to ''''''rd pert)' COMrf)(:'\O,., d-i.
...cUy ~ in pertonning O~1Of'l 0( ,~l 0(
a~ tf'Om ~lf'e'(J .,.",c. AA proc..-d.. tram the
..... 0( M~ or ..,. ~l of s1Nc1ur., I>hou~ be
cr.d"ed to tn... account; thenlby rwl"te-ctin( "eo(
.n"lOUrtU iC fIIeIftLI.rwd by "". r~~,..1 ~.M")'.
Ilk [Mer t~ .mouNts a~""ed wnh the _dulll con.
..-vction of, -<<t,.kHol kI, fK restoralion of II facility.
N.c. induck in Ihi. CMt~. the amounh tor rtroj.c:t
'm~ ~k as .....,..... 51'.-.(1. 1....0 K.A P'"i.
...., 1IP<lrc.
) 11 Em.... efY104l,l!'lb tor a" equtpm~R1., bott1 find and mo....
abN., ewck.l,...,... IIQv/runent u-..rod tor construction.'or
DArn,,"_ r-rm.....n1ty' AttKhe<i MbotlItory tabl.,. buU(.
6ft aoudio Nu.l wyQe'I'llII... M(NatH. dnks, ch.8 i", , and
Ia'-""><y "",,;pm..,t.
11", ~.... ~nb 'Of aM A..m& not. IP'f'C'fkal"" men.
-... -.
11" Em.,. the total c:umwletjw ar1'lO(.".,t to dete Wro"hlch
ahoukf ~..... ~ol"fte'S. "l"OUf'h m.
l1.e biter ttM total ,unount. of prD(lt'8m '"come applied to
the ar.nt or c:ontrlld ~.rtt beep{ 'ncome in.
...... ... ....". .. hi.nUfy Of\ a MP-anth ahH't 01 pepoe-r
the aoun:as.nod ~ eI DM Jl'MSOmc.
11, !/It.,. ~ P'J4IIt cumuLetiYt amount to dat~ which .~k:l
be ttw .rnGllH9C. ~ 0l'I NrM n minus the amount
... line o.
14 1M<< t..... ~ wrhe" ~ ..... _f'nOUnt shown on '1M p.
J lr Enter the wn8UfIlIt of rw-nabl.lta:tiOfl ,r1In\ p.eymerrtl.
~ to IndtvWueh whe... p~,.m ""...etion proyide-s.
100 ~ ~ by tho ,..,...1 arney.
111 Em... _ *-I __ ol redo"" POym.<\t> "",,Iously
--. " ",.. lonn l& ..- to< ~E r..m,
.....--.
lAw 1.......-... ~flI( F'lOW' ~nt" .-..q~ ...... ~......
~ nw.. ~ ~I(l 1M tt\e .i....re-nc. ~e1'l
the: .."....... --., ~ !,;nee . and t. It din .'n nl, n.
,...... ............,.....n...c...
Ih To M ~.., by ..... _ oIO\clo; who ;, r..
~ tor ttw oper.tion 0# ..... Pror.....-r'l. Tn. det.
..noutd _ tM >>CtUAI ..... u.... ~ it submitle(J \0 the
F.e.r., .~.
12b To b. ~"'ed by..... ~ rep~"'.tjyw
who K c.rtttyi"( \0 the p.woc.n( of pt"Oj-c1 compl_, ion
as ~ed tot" in ttM: ~. 01 Ute I,.nt 0( .r~.nt.
A-110:13
'\
I
Office of Management and Budget Circular A.110 (7/30/76)
ATTACHMENT H,-CIRCULAR No, A-liD
MONITORING. AND REPORTING PFl.QGRAM
f'ERF"ORM-ANCE
I. This attachment sets forth the proce-
dures for monitoring and reporting program
performance of recipients.
2, Recipients 'shall monitor the performa:lce
under grants and other agreements and.
where appropriate. ensure that time sched-
ules are being met, projected work units by
time periods are being accomplished. and
other performance goals are bel ng achieved,
This re"lcw shall be made fo~ each program.
funcllon, or actlvlt,y of each agreement as set
forth In the approved "ppllc"llon or "ward
document.
3, Recipients sh"lI submit" performance
rcport (technlcnl report) for each agreement
thAt brleny presents the following Inform.-
tlor. for e"ch program, funcllon" or "ctlvlty
In"olved as prescribed b)' the Fedcral, spon-
soring agency:
a. A comparison of "ctual accomplishments
,,'Ith the goals established fo,r the period, the
findings of the Investigator. or both. H the
output of programs or projects can be readlly
quantified, such quantitative d"ta should
be related to cost data for computation of
unit costs,
b, Re"sons why established goals were not
met.
c. Other :pertinent Information Including.
when llpproprJate. analysis "nd explanation
of cost overruns or high unIt costs.
, 4. Except as provided In a and b ,belOW.
and In subparagraph 3a( 1), Attachment G.
reCipients shall submit the performance or
technical reports to Federal sponsoring agen-
cies and the Financial Status Report~ cov-
ering the same period In the frequency estab-
lished by Attachment G of this Circular and.
where appropriate, " tinal technical or per-
formance report after completion or 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 rcquest for ad,'ance or reim-
bursement when that form Is used In lieu
at the Financial Status Report, Except as pro-
Vided for In paragraph 5 below. perform"nce
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 performance reports with the financial
reports under the following clrcumst"nces:
a, When the recipient Is required to sub-
mit a performance report with a continua-
tion or renewal appllcatlon,
b, When the Federal sponsoring agency de-
termines that on-site technIcal Inspections
and certified completl";] dp.ta wlll be sum-
clent to evaluate construction projects,
c, When the Federal sponsoring agency re-
quests annual financial reports on a fiscal
year basis but It Is necessary to get annual
prcgress reports on a calendar year basis,
5, Between the requIred performan~e re-
porting dates, 'events may occur th:;t have
Significant Impact upon the project er pro-
gram, In such Instances, the recipient shall
Inform the Federal sponsoring agenc)" as soon
as the lollowlng t)"pes of condltlens become
kno"'n:
a, Problems. dela}'s. or adverse conditions
that. wlll materially atrect the ability to at-
tain program objectIves, prevent the meet-
Ing of time schedules and goals, or preclude
the attaInment of project werk units byes-
tablished time periods. Thls dIsclosure shall
be accompanied by a statement of the actIon
taken. or contemplated, and any Federal as-
slsUince needed to resolve the situation,
b, Favorable developments or events thnt
enable time schedules to be met sooner than
anticipated or more work units to be pro-
duced than originally projected,
6, If an)' performance revlev.' conducted
b,' the recipIent discloses the need for change
I; the budget esllmates In accordance with
the criteria established In Attachment J Co
this Circular. the recipient shall submit a re-
quest for budget revision,
7. The Federal sponsoring agency shall
make site "Islts a.s frequently as practicable
to:
a. Review program accomplishments and
management control systems, and
b, Provide such technJcnl "sslst"nce as
ma)' be req ulred.
8, Federal sponsoring agencies shall submit
proposed technical and performance r~ports
to the Ornce of Management and Buuget for
npproval In accordance wi th the report clear-
ance requirements of OMB CIrcular No. A-40
as re"lsed.
ATTACHMENT r.--CmCtlLoAR No. A-liD
PA \" MEJ>r,"'T ReQUIREMENTS
I. ThIs atla.chment esta.bJlshes the re-
quired methods of making pa)"ments to recip-
Ients. These methods will minImize the time
elapsing between the disbursement by these
recIpients and the transfer of funds from the
United States Treasury to these recipients
whether such disbursement occurs prior to
or subsequent to the transfer of funds,
2. Payments can be made to recipients
through a letter-of-credIt, an advance by
TreaSUT}. check. or a reimbursement by Treas-
sury check. The followIng definitions apply
for the purpose of thIs attachment:
a. Lerrer-oj-Credit,-A letter-of-credit Is
an Instrument certified by an authorIzed orn-
clal 01 a Federal sponsoring agency that au-
thorizes a reCipient to draw funds when
needed from the Treasury. through a Fed-
eral Reserve bank and the recipient's com-
mercial bank, In accordance with the provi-
sions of Treasury Circular No, 1075. as re-
vised,
,b. Advance by Treasury check,-An ad-
vance bv Treasury check Is a payment made
bv a Treasury check to a recipient upon Its
request bel ere outlays are made by the
recipient, or through the use of predeter-
mined payment schedules,
c, Reimbursement b}' Treasury check,-A
retmbursement by Treasury check Is a Treas-
ury check paid to a recipIent upon request
for reimbursement from the recipient,
3, Except for construction grants and
other construction agreements for which op-
tional payment methods are authorIzed. as
described In paragraph 5. the letter-of-credlt
method shall be used by Federal sponso::lng
agencies 11 all at the following conditIons
exist:
a. If there Is or wUI be a conllnulng rela.
tlonshlp between a recIpient and a Federal
spc-nsorlng agency for at least a 12-month
period and the total amount of advance pay-
ments expected to be received ,,'Ithln that pe-
riod from the Federal sponsoring agency Is
$250.000 or more. as prescribed by Treasury
CIrcular No. ]07~, For joint funded proJects
the Treasur)" has author12.ed a dollar criterIa
of S120.000, ,
b. it the reCIpient has established or dem-
onstrated to the Federal sponsorIng agenc)"
the willingness and ablllty to maintain pro-
cedures that "1ll mInimize the tlme elaps-
Ing between the transfer at funds and theIr
disbursement by the recIpient,
c. II the reclplent.s financial management
s"sterr. meets the standards fer fund controJ
and accountability prescribed In Attachment
F to thls Circular, "Standards for Flnanclal
l\~8nagement Systems:'
4, The method of "dvanclng funds b)"
Tren...lI:.uTv check shall be used. in nccordnncc
\l.'lth the provisions 0: Trea.sury Circular No.
I
A-110:14
1075, when the recipient meets all of the re-
quirements specified In paragraph 3. above.
except tho,e In subparagraph 3a,
5, The reimbursement by Treasury check
method shall be the preferred method If the
recipient does not meet the requirements
specified In subparagraphs 3b and 3c, above.
At the option of the Feder"l sponsoring
agenc)", this method may also be used on any
constructlon agree men t. or If the major por-
tion of the progl am Is accomplished through
prIvate market fmanclng or Federal loans,
and the Federal assistance constitutes a
minor porllon of the program, When the re-
Imbursement method Is used. the Federal
sponsoring agency shall make payment
within thirty dnys arter receipt of the billIng,
unless the billing Is Improper.
6, When the letter-of-credlt procedure Is
used. the recipient shall be Issued onc con-
solidated letter-of-credlt whenever possible
to cover anticipated cash needs for all grants
and other agreement.' awarded by the SpOIl-
sorlng agency, LIkewise, to the extent J>o.sl-
ble. when the advance b)' Treasul')' check
method Is used. advances should be cun-
solltlated (pooled) for all grants and other
agreements made by the sponsoring agency
to that recipient, ' ,
7. Unless otherwise required by law. Fed-
ernJ sponsoring agencies shall not wIthhold
paym!nts for proper charges made by recipi-
ents at any time during the project or pro-
~rnm period unless (a) a recipient has failed
to comply with the program objectIves. 8"..ard
condlllons. or Federal reporting require-
ments: or (b) the recipient Is Indebted to
the United States. and collection at the In-
debtedness will not ImpaIr accompllshment
at the objectives of a project or program
sponsored by the United States,
Under such condltlons. the sponsoring
agency ma)', upon reMan able notice. Inform
the recipient that payments will not be m&de
for obllga llons Incurred alter a speclned date
until the conditions are corrected or the In-
debtedness to the Federal Government Is
llquldated,
ATTACHMENT J,--CmcuLoAs No. A-110
J{EVlSION or TINANClAL rL^NS
L This attachment sets forth criteria and
procedures to be followed by Federal spon-
soring agenCIes In requirIng recipients to re-
ponde,'latlons from financial plans and to
req uest approvals for financial plan re~
,'Islons,
2. The financial plan Is the flnancla] ex-
pressIon of the project or program as ap-
proved during the appllcallon and/or ~ward
process, It may Include either the Federa'! and
non-Federal share, or only the FederaJ share,-
depending upon sponsoring agency require-
ments, It should be related to performance
for program evaluation purposes ....henever
approprla te and req ulred b)' the Federal
sponsorIng agency,
3, For nonconstructlon awards. recipients
.hall ImmedlateJy request approvals Irom
Feoeral sponsoring agencies when there Is
re3.son to bel1e\'e tha.t \,1,'lth:n the next 5!,Ven
days a revision will be necessary for the
tollo\\/lnb reasons:
a, Changes In the scope or the obJectl,'e of
the project or program,
b. The need for additional Federal fund-
InS,
c, The transfer of amounts budgeted lcr
Indirect costs to absorb Incre"ses Indirect
cost, or vIce versa. t:: approval Is requIred
b\' the FederaJ sponsoring agency,
. d, The expenditures as require approval In
accordance ....lth FMe 73-8. "Cost PrinCiples
for Educatlona] Institutions," For all other
awnrds. appro"al reaulrements for other
Items of expenditures may be Imoosed If they
nre conslslent ....Ith those In FMC 73-8, No
other requIrements for specific Items may be
I
Office of Management and Budget Circular A-110 (7/30/76)
Imposed unless a deviation h&5 been ap-
proved by the Office 01 ManR{;emen~ and
Budge~,
e. Reclplen~s pl"n to transfer funds allo~ted
lor training allo,,'anccs (dlrec~ paymenUl to
trainees) t.o o~her categorle. of expense.
.. None of the substantIve programmatic
work under " gran~ or other agr""ment m"y
be subcont.racted or translerred wlt.hout prior
approval of the Federal sponsoring agency.
This provision does not. apply to t.he purchMe
01 supplies, tnAterlal. equIpment, or general
support ser\'Jces.
5. The Federal sponsor1ng ll{;ency may
also, at. Its option, restrict translers 01 funds
MTlong dIrect cost. calegorl"" lor awards In
,,'hlch t.he Federal shAre exceeds '.100.000
when the cumulat.lve amount. 01 such tra/l6-
fers exceeds or Is expeclcd to exceed five
percont. of Lhe total budget lLS last. "PI' roved
by t.he sponsoring agency.. The same erllerla
shall apply to the cumulative 1LID0unt 01
t.ranslers among progr&dJl6. func~lons. "nd
actlvltles when budgeted separately for an
award. except. that. the Fedeml sponsoring
agency &hILlI perrn1t. no transler tb..t would
cause any FederlLl approprlll-t.lon. or par~
~hereol, to be used lor PUrp06C6 o~ber tban
th05e Int.ended,
6. All other changes to nonconst.ructlon
budgets, except for tbe cbanges described
In paragraph B, belo"', do no~ requIre ap-
proval. This Includes tbe lISe 01 reclplen~
funds In lurtherlUlce 01 program objec~lves
over and above ~he recIpient. mLoJmum sbare
Included In the approved budget.
7. For cons~ructlon ......ards. recipients
shall request prior ...pprov...ls prompt.ly from
Federal sponsoring R{;encles for budge~ re-
visions wherever:
.... The revision results from changes In
the scope or the object! ve of tbe project or
program. a.nd
b, The revlsl= Increases t.be budgct
..mount.s of Peder..) funds needed to com-
plete the project..
a. ""hcn a Federal sponsoring agcn:y
makes an a"';u-d t.h..t provldcs support,for
both const.ruct.lon and nonconst.ructlon work.
the Feder..l sponsorIng agcncy may require
the reclpien ~ to request prior approval from
the Federal sponsoring ll{;enc)' belore m3klng
any fund or budget trAnslers between t~e
t.wo types 01 work support.e<l,
9. For both construction and nonconstruc-
tlon aw;u-ds, Federal sponsorIng agenclcs
shAll requIre recipients to notlfy t.be Fed-
eral sp:>nsorlng agency promp~ly ,,'henever
t.he amount of Feder,.} .autbor1=d funds Is
expected to exceed the needs 01 the recIpient
by more than 1.5.000 or five percent 01 tbe
Federal award. whichever Is gre3ter. This
notlllc...tlon wUl not be required If "'ppl1ca-
Lions lor additional funding a.re sul:>mJtled
for contInuing grants or contre.cts,
10, When request-In:; approval lor budget
revisiOns, recIpients shall use ~he budgll~
fonru; that were used In tbe application
unless a leLter request "ill suffice.
11. WIthin 30 calendar da\'s Irom the date
0: receIpt of the request ror budget re"l-
slons. Federal sponsoring "gencles shall re-
vIew the reques~ and notlly tbe recipIent
whether the budgct revIsions have been ap-
proved, If the revIsion l' still under con-
sideration at. the end 01 30 calendn days
the Fe<:Ieral sponsortng agency shall Infor~
the recipient In WTlting 0: Lhc date wben Lbe
rec1plent may expect the decl,lon,
ATTACHMENT K,--CmCUw.R No. A-lIO
CLOSEOUT rnOCDJUTtES
1. ThIs atta.chment, prcscr1bcs unlform
closeout procedures for Federal grants and
other agreeme n ts "0'1 th recipients,
2, The follOWing definitions shall apply lor
the purp06C of thL' atLachment:
a. Clooeout,-The closeout of a grant
agreement 11; the proce"" by whlcb a Federal
sponsoring R{;ency determines tbat &!I ap-
plicable a.dmlnlsLratlve a.cuons and all re-
qulrc<1 work of t.he R{;Teement have been
completed by t.be recipient and lhe Pederal
sponsoring agency.
b. Date 01 complelion.-'lbe date 01 com-
pletion 11; the date on whlcb all work under
grants and otber R{;Teements 18 compleled or
the date on 'Lbe award document, or any
'IIupplement or amendment thereto. on wblch
Peder&! sponsorship ends,
c. D;.,aJlolPCd co.,t..-Dlsallo,,'cd costs arc
those charges to a grant or other &{;reement
that. the Fedcml Spoll.'\Or!nc agency or It.,
reprcscnLRtlve delermlncs to Uc unallow-
able. In accordAnce with the nppllcable Fed-
eral cos~ prInciples or other conditions con-
tained In tbll "l,'Teements,
3, All Feder&! sponsorlnc ll.j;enclc.' ..hall cs-
tabllsb C106CoUt procedurcs tbat Include the
10Uowlng requlrements:
a. Upon request, t.he Pederal sponsoring
arency sball make prompt payments to a
reclplcnt for allowable rclmbursnllle costs
under t.he grant or other agrecment being
closc<l out.
b, The recipient shall Immedlntely relund
any balance 01 unobligated (unencumbered)
c'-5h that the Federal sponsoring agcncy has
ndvanced or paid and that Is not nutborl7,ed
to be retalncd by thc recipient fllr use In
other grants or ot.hcr ngTccments.
c. The Federal sponsoring agency sball ob-
t,,1n from the recipient wltbln 90 calendar
days after the d"te of complctlon 01 t.be
agree men t all fin"nclAl, perlorm"ncc, and
other reports rcqulred as thc condition of the
agreement. 'lbe agency may grant extensions
when requested by t.be reclplcnt.
d. When authorized by t.he grant or otber
agreement. the Federal sponsoring agency
sh..ll make a settlemcnt for any upward or
downward adjustments to tbe Federal shnre
of costs after tbese reports a.re rccclved.
e. The recipIent sball aceount for any prop-
erty acquired ...Itb- Fcderal lunds. or re-
ceived from t.be Government In accordance
wltb tbe provisions of Attachmcnt N to this
Circular. Property Management Standa.rds.
1. In tbe event a final audit has no~ been
penormed prior to tbc closeout of t.he grant
or o~ber R{;Teement. the Feder&! sponsorIng
....gency sball retaIn t.be rlgbt to reCOvcr an
appropr1ate amount after fuUy considering
thc recommendations on disallowed cOGts re-
sulting from tbc final audIt.
4. Suspension and terminatIon procedures
are contained In Attachment L to t.bls Clr-
culnr.
ATTACHMI:NT L,-CDlCULAa No. A-lIO
SUSPENSION ANn TJ:RM1.NAnON' PROC'l:DUJL.[:5
1. This attachment prescrtbes unl!orm
suspensIon and termlnat.lon proccdures lor
Federal grants and otber ap-eements wi tb
re:lplents,
2, 'lbe lollowlng definItions shaU apply
fcr the purpcse of t.hls attachmcnt:
a. Tcrmlnation.-The t..ermlnstloo of s
gran~ or otber agreemcnt. means toe c"n-
cellatlon of Federalspoll..'<Orshlp. in whOle or
in pRrt. under an BgTeemcnt at any tIme
prIor t.o t.be date 01 completIon.
b. S"-'pcn.sion.-The suspension of a grnnt
or other agreement ts ILD acLlon by a Fede".1
sponsoring agcncy that temporarily SU.'-
pends Fedcral spons::rshlp under the gran t
or other B{;TCcz;:ncnt, pending correctIve ne-
Lion by the recipient or pending a dcclslon
to terminate tbe grant or otber agreement
by tbe Peder&! sponsorIng &gency,
;3, All Federnl sponsoring ngencles 5hall
provlOe procedures to be followed "'hen a
recipient bas failed to comply v.1 th the terms
I
A-110:15
of the grant or other "!!Teement "nd condl.
tlons or .tandards, When th"t occurs, the
F'ederal sponsoring agenc)' m"y, on reason-
able notIce to the recipient, 5uspen,d the
grant or other agreement. and withhold lur-
ther paymcnts, prohIbit the recipient Irom
Incurring addItional obllgaLlons 01 funds.
pending correctlve "cLlon by the recipient, or
a decision t.o t.ermlnaLlon In accorda.nce with
paragr"ph 4. The Federal 6ponsoTlng agency
shall allow all necessary and proper costs
t.hat U,e recipient could not re"sonabl" avoid
durIng t.he period of suspension provld~d that
thp.y meet the provIsions 01 t.he applicable
I"edera) cost principles,
.. Federal sponsor I ng agencies shall pro-
vide for tho "ysLematle settlement 01 ~er-
mlnated grants or other agreements Includ-
Ing t.be following:
a. Termination lor cau.e,-The Fedeml
sponsoring agency may reserve the rIght to
terminate any gr"nt or other agreement In
wbole or In part at any time bel ore the dale
01 completlon, whenever It 15 determined th"t
the recIpient has fnlled to comply with the
conditions 01 the agreement, The Federnl
5ponsorlng agency shall promptly notlly the
recipient In wrIting 01 the determination and
the reasons for the terminatIon, together
wltb the e/Tectlve date, P""ments made to
reclplcnts or recoveries by ti,e Federal spon-
soring agencies under grants or other agree-
ments terminated for CaUse "hall be In ac-
cordance with the legal rights and liabilitIes
01 the parties.
b. Termination lor convenicn<:e,-The Fed-
cral sponsorlng o.gency or recipient may ter-
mInate grants and other agreements In whole
or In part. when both partIes agree that the
continuation 01 the project would not pro-
duce beneficial results commensurate with
tbe further expendIture of funds, The two
pMtles shallll.!!Tee upon the termination con-
dItions, IncludIng the e/Tectl\'e d"te and. in
the CllS(! of partIal terminations. the portIon
to be terminated. The recipient shall not
Incur ne'" obllgatlons lor the terminated por-
tion alter t.he e/Teetive date, and shall can-
cel as many outstandIng obllgatlons as 1'0&-
"Ible, The Federal sponsoring agency shall
all 0'" full credit to the recipient for the
Federal share 01 the noncancellable obliga-
tions, properl)' Incurred by the recipIent prior
to termination,
ATTACHMENT M,-CIRCULAR No, A-IIO
STANDARD FORM rOR APPL TING FOR
TClERAL ASSISTANCE'
1. This atta.chment promulgates a stand-
IU"d lorm (SF 424) t.o be used by public and
'private Instltutlon.s of higher education.
pUbliC and private hospItals and othtr quasl-
public and private nonprofit organizations as
a face "hee~ for applications when applyIng
for Federal gr..nts under programs eo\'ered
by Part 1, Attachment A, OM13 Crlcular No.
A-95, In additIon, agencies are partlcull\r!"
encouraged to etxend the use 01 SF 424 to
common programs "1th Stl\te and local go"-
ernments where this form Is now required by
FMC 14-7,
2, The SF 424 may also be \,sed. on an op-
tIonal basIs. to fulfill the requIrements of
OMB CIrcular A-9S lor a notlncatlon 01 In-
tent. from applicant to clearing-houses. thn.t
Pederal assIstance "ill be applIed lor. Locnl
or State clearinghouse procedures will govern
the use 01 the lorm lor this purpose.
3, The standard form wlll also be used 1)\'
Federal agencies to repon to the clearing:
houses on mnjor actions ta~:en on "!,pllcn.
tlons revIewed by clearInghouses In accQrd-
ance wi th OMB Circular A-95. and Lo noLlI\'
States 01 grants-In-aid awarded In accord"
nnce ,,"'Ith Treo.sur)' Circular 10B2,
I
I
Office of Management and Budget Circular A-110 (7/30/76)
A-110:16
OIolB Appronl No. ~u.
o I'REAPI'LlCATlON
o ""I'UCA TlOH
o HOTlFICATIOl( Of IKTIJ(T ('()pt.)
o RU'ORT Of rrOEAAl ACTIOH
L M'PlI,
CANT'~
APPlI-
eA T 10M
a, II\IW BER
a. IIV>I BU
19
1. STATY
~Uc-.....
nON
ID[HTl-
P'1[ft
~. DA Tt
ASSICHEO
1...... ........l'-- do,.
FEDERAL ASSISTANCE
1. TYPE
0'
ACTION
(.11I_.".
'-.~
...)
~, OAT{
r ..,. ___~ .....
19
L,..,
lfto ~l
4. LEGAL APPLICANT/RECIPIENT
~. '~DeRAL r:"'PLOYfl\ tDf:tfTlf'ICA TlON NO.
.. ,A.ppliunl Nt'""' :
~ , Or,lniutio" UI'IH ..
c. 51.-.(/P.D. Il<u :
d, City : .. 6ow.ty :
f. 3lrif : I. ZIP Coda:
6-
PRO,
GRAM
a, HUWBER
b. TlTU
I I \. I I 1 I
h. ~nuol fonoo (No_
A tf'kJ"l',I.,(H'tf ND.) :
7. TITLE AND DESCRIM'ION 0' APPLlCANra PROJIiCT
( Fro","
"0<1.....1
CDlolo..,
..
~
~
..
~
~
!
~
g
6. TYP[ or
Io.-$tah
~11li'tnt.J\4
C-Subs\.al.
Oirtrtd
~nty
E-CI., .
r - ~ool Olrote!
~r:;ll~ """"",,
,..,.PLIOA,.".,F1rCIf>IENT
H-Corn,.,u"ftr Ac1IO-' ~
.... ~ H1rher (duulionl1 tN1Hulion
J- '''diul Trlbt
I;-OIhw (S,..rl(vl:
K",l#f' .,..,.....".,...;.ott I..ftl'f"O
~ TYPE OP' MSISTMIC[
J-....:&.,Ic c,....t [)....hn",..u.
&-Iu~h--"t.i tnM. '~h.r
C-lC'*II
6...tn G7'~ ITJ
,..-io t. lo' /.n ( .)
10. AREA 0' PROJecT IMPACT lNe_.. <>1 ~. .......!Wo.
S....... ....)
11. ESTIMA7e9 ,..tm-
B ER or rtl'UO NS
ErIt.N [FITI N G
12. TYPE or APPUCATION
~_ C-R...il~ l.........,Moe.t'l\.lUon
....Ihr'l.....I ~..\i"u.atlo<< 0
Eftt.n 61'P'T"O~t. l.u...-r
I, FIDERI\L S
b, ~PLlCAl(T I
c, STATE
t. LOCAL
.00 ' a. AP'UCAHT
.. , ftC/rei'
115. TYPE or CHANGE (Fvr 11< ... U.)
A-lnt"...... Dottan F-OU"ar (Spfldfy):
~.c""" D.B,"
C-1"ef'M'" Ou,..tttQ\
O-OKl..... O.",UOfl
[....ca~H.tio-
11.
P~EO fUNOIN6
l~. CONGRESstoNAL DISTRtCT~ 01':
.De
.00
, 11. I'1'lOJECT
DURATION
N01'Itkl
Y'.or- ~ d.ay
~ .t{,:~(.) ere]
19. EXISTING fEDERAL IDENTIFICATION NUMBER
t. OTHEft
.00 a. b...~~Er_rS~ dc.7
19
.00 la. ~r~~JPTT~'6T\JO
.00 'EOERAL AGENCY ~ 19
RECEIVE REOU~T (N_. CU__ 11_ Ul' ~
/21. REMARKS ADDED
o 'I'M 0 No
I. TOTI\L :
20. 'EDERAL AGENCY "TO
n.
~
5 "THE
;:: APPLICANT
~ CERTlf'tES
V i THAT ..
11
I. 1. lh. best .-( my knowled,. Il'Id "'I~.
d.h i", thi. ~~itlIlDll/aP9Iic..aU~ .,.
k'u. ..ul cortMl. ",-, cSoe~u"I."1 h, ~
ou+r authorileod ~ tJrt. fO'Y'eof1\ir'lE bodt e(
ttu 'pQlic..ar'l1 'nd b" lpplic..aat ...ill """1'b
..-lth 'h. ,....eMe MIoW1IW. U u.. attJ......
,n.. lot .Dpnrr"'::;.
~. H '.0"",," by OM8 ei~uJI( ,1,.-95 tftn Ic:rpfit..tioll\ ..., ~ln-.G. pur~..."t ki j".
.weliona liI......ln. tc 'ppro()rial' ,INrI",,,,,,,,,, .,,~ .f! r_pofU~ In .tb.eA..d;
""01"-
.".,.....
R_y.ft"""'.
atL.6.G^-ed
11)
I2l
, (31
o
o
o
o
o
o
~ Z3. a. TYPED KA.\I! AIID TITU ~. 1I11HAT\JRE L DATE SIQltlD
CERTIFYINGj )'_r ........u. o...,y.
~ REPRE.
t:: SENTATIVE , 19 ~
>4. AgENCY NAME ,zs. APPLICA, }'-- --.lJ.. ....
TION
RECENED 19
26. ORGANIZATIO"""-L UNIT 1.7. AOMINIST~TIV[ O,nC[ 2r.. rEDERAL APPLICATION
~ IDENTIFICATION
~ 2:!l. ADDRESS I~' P'EDERAL ORANT
~ tOENTIFICATION
~ 31. ACTION "TAKEN lL FUNDrN<: )"- ........... ..." I >4. }'_r -"'^ ....
i I : I :no "ARnNG
0 I. AWAAOED a, r!D[AA:. .00 M:TION DATf: ~ 19 DATE 19
.. 0 ~. RU( CT ED APri. tCAHf I .00 v ~T.a.cT ,0/\ ACOlnONAL tH~~IoCA, l6- Y_r .......v.. ....
Q ~ ,
I; I lON (H...... o.....J '-6pit..c-tu ....."".."") [NDING
1 o l, "E1\I1l If( 0 1'0 ~ t, SlAT( .00 DATE 19
""olE!i[)l,:urr t, LOM, ! .00 37. REMARKS ADDED
~ 0 (, DEn!AAro a, Dl'He~ ! .00
~ o a, WI TM 0 IVIWff l. TOT N. I s .00 o Y.l ONo
..
'\
I 3ll.
'EOERAL AG. EtotCy
A-95 ACTlON
I .. I", blrlnl ....... .eno.... .",.. OOfJlm4lftU PMerv..d tn..... d...nnrhoouMS ....,. ~'I ~,
..id.t... If "'Jlflcr tti:'Oll'" I. d.. .lIIl1el ~...... _ fH1, 1..0W8 C&reuJar ,A...-96.
lit ..... ..... .,. III ~ .a.d..
'[DERN. AGENCY >-9' OFTICII\L
'Na.nu ....d kl4p.A.o.w -.0.)
I
~
Office of Management and Budget Circular A.110 (7/30/76)
A-110:17
SECTlON IV-REMARKS (Plecue referenu tM pt'"~r item n"mbN" from Sutic-tu I, II <>1' Ill, if appli=bu)
'\
STANDARD FORM 424 Pf,GE 2 (lO-r)
I
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).
^PPUCNIT PROCEDL;RES FOR SECTION
Applicant will complete all items in Section I. If an Item Is not appliC2lble. ....me "NA". If lJdditional space is needed. insert
an asterisk ...... and use the remarks 5eCtion on the back of the fonn. Iv! explanation follows fOf' each item:
Item
1.
Mal1l appropriate box. Pre-8ppllcatlQn 8nd appllCZl-
tion guidance is in FMC 74-7 and Fedeflll 8gency
program innructiom. Notlf\Clltion of intent RUid.
ance is in Circular A-95 procedures from clear-
inghouR. Appltcant will not use "Report of Federal
Action" bol(o
2a. Applicant's own control numb-cr, If desired.
2b. Ollte SectIon I Is prepllred.
311. Number eSlIigned by State clearinghouse, or 11 dole-
gated by State. by 8reawide clearinghouse. AI' ~
quests to Fedellllagencic must c:onbJin this identi-
fier H' the progfllm is covered by Cin:ul8r A-95 and
required by applicable' State/areawide clearing-
house procedures. If in doubt. consult your clear.
inghouse.
3b. Dete 8pplicant notJfiad of cleoringhouse ld:mtifier.
4&-4h. Legal n8me of 8ppliCl!nt/r=lplent, neme of primal)'
organiutiOO81 unit ..tlich will undcrt2lke the assist-
ance activity, comp:::te edd= of 8ppliCZlnt. end
name and tolephone number of pe~on who am pc-o-
vide further infonnetion Ilbout this request.
5. Employer identification number of 8ppficant as as-
signed by Internal RevonlHl ServIce.
00. Us.e Catlllog of Fodera! Domestic Assistance num-
ber assigned to progrnm under which aS3istance is
requested. If morn than one progfllm (e.g.. }oint-
funding) write "multiple" and explain in ",maria.
If unknown, cite Public lZlwor U.S. Co<M!.
6b. Program tltkl from Fedora I Cdalog_ AbbrtMlrte If
necessary.
7. Brief title and epproprilrte d~ript)on of project.
For notificz:tion of intent. continue in rem!lrits sec-
tion if necessary to convey proper description.
8. Mostly self-(:T.planatory. "City" includes town. town-
ship or other municipality.
9. Check the type(s) of a:sistl!nce requested. The
definitions of the terms are:
A. B:lsic Grnnt. An original request for Federal
funds. This would not include any contribution
provided under a supplemental gn.nt.
B. Supplemental Grant. ^ request to increase a
b8sic grant in cerUlin cases where the eligible
Ilpplicant cannot supply the required matching
share of the basic Foderal program (c. g.. gn.nts
awardad by the Appalachian R~ional Commis-
sion to provide the applicant a ITl8tching share).
C. loan. Self explanatory.
14a.
14b.
15.
Item
10.
D. lnsufllnce. Seff expl8natol)'.
E. Oth er. Expift i n 00 rnffia rks page.
GoYemmenbll' unit whem aigniflQlnt IInd meening-
ful impact could be observed. li&t only largest unit
Of' unit:s llffected, such as SOrte, county, or city. If
entirn unit 81fccted, list it rather than subunits.
11.
Eaimllted number of ~s directly benefiting
from proj<<:L
12.
Use appropriDte code letter. Definitions lire:
A. New. A submittlll for the finst time for II new
pro;cct.
13.
B. Renewal. Iv! extens>on for an additional funding/
budget period for II project having no projected
complctlon dwte. but for which Federal support
must be reoewtld _ch ~r.
C. Revision. A modification to profect nllture or
SCX>p!l which mil)' result ift funding change (in.
~se Of' Oecnul se).
D. Continuation. Iv! extension for an eddltlonal
fundi nn/txJdee't period for a pro}ec:t th 0 8 go n C)'
initill/iy agreed to fund fOf' a definite number of
)'flll r5.
E. Augmontzrtion. A requirement for 8dditionlll
funds for a project previously awarded funds in
the same funding/budget period. Pro;ect nature
and scope unchanged.
A.'1lount requested or to be con'tributad during. the
first funding/budget pl:lriod by Bach contributbr.
V81ue of in-kind Contributions will be Included. If
the action is a chllng-e in dollar 8mount of IIn exist.
ing grant (a revision or augmenbrtion). indicate
only the amount of the change. For decrea~ en.
close the amount in parentheses. If both basic and
&Uppl~Tlental 8moUnt:s are included. breakout in
remllrla. For multiple proeram funding, use totals
and show prognlm brenkouts in remarks. Item defi.
nitions: 13.2., amount requested:from Federal Gov.
ernment; 13b. amount applicant will contribute;
13c, amount from State. if appltcant is not a St2lte;
13d, amount from local government if applicant is
not a local government 13e, amount from any other
soun:es. explain in remaoo.
~ explanatory.
The distnct(s) where most of actual worll will be
accomplished. If city-wide or Stzltto-wide, covering
several districU. ....me "city-wide" or "State.wide."
CompH:te only for revisions [rtem 12c). or augmen.
tzrtions (item 12e).
STN'lDt\RD FORM 424 PAGE 3 (10-75)
I
I
Office of Management and Budget Circular A-110 (7/30/76)
A-110:19
Item
16.
Approximate dale project expecte-d to begin (usuelly
associatMJ wilh estimated dale of availability of
funding).
Estimated numbi!r of months to complete project
llfter Federal funds are available.
Item
19.
Existing Federal Identification number If this I. not
a new reQuelt and directty relales to e prevlou.
Federnl action, Otherwise write "NA".
IndicB1e Federal agency to which thIS requ...t I.
addressed, Str~t addre!! not required, but do Use
ZIP.
17.
18.
Estimated date preapplication/appllcation will ~
submitted to Federal agency If this project requires
clearinllhou~ review. It review not required, this
date would usually ~ IBm'll u date in Item 2b.
20.
21.
Check appropriate box as to whether Section IV of
form contains remMks and/or additional remarks
are attactlod.
APPLICANT PROCEDURES FOR SECTION II
AppllCBnts will always complete Items 23a, 23b, and 23c. If clearinghouse review Is required, Item 22b must be fully com.
pleted. An explanation followz for each item:
Item
23.a.
22b.
U~t clearinghouse!. to which submlt1ed and show
In appropriate blocl-~ the statu. of their responses.
For more then three clcaringhouses, continue In
remaoo section. All wntten comments wbmlt1ed
by or through clcarinE'lOusec must be attllched.
Name llnd tille of lluthorized representative of legal
llppliCllnt.
'tern
23b.
Self explanatory,
23c.
Self explanatory.
Note:
Applicant complete. only Section. I and II. S&ctlon
III is completed by Federal agencies.
FEDERAL AGENCY PROCEDURES FOR SECTION III
If appUCBnt-suppli&d information in Sections I and II n&eOs no updating or adjustment to fit the final Federal action, the
Fedel"Zll agency will complete Section III only. An explanation. for each Item follows:
ttem
24.
25.
215.
27.
28.
29.
30.
31.
32.
33.
34,
Ex&cutive department or Independent agency having
program administra,tion respon~lbility.
Setf e.xpla natory.
Primary o'Fllnizatlonal unit below department level
having direct program manllgement responsibility.
Office directly monitoring the progl"Zlm.
Uu to Identity non.award actions where Felderal
grant identifier in item 30 Is not applicable or will
not 5UfTIce.
Complete addr= of administering office shown In
Item 26.
Use to identity award actions where different from
Federal application identifier In item 28.
~If explanlltory, Use remaoo section to amplify
where appropriate,
Amount to bi! contributed during the fIrst funding/
budget period by each contributor. Value of in. kind
contribution. will b'J included. It the action is e
chllnge in dollar amount of an existin;; grant (8 revi.
sion or augmentation). indicate only the amount of
change. For decrease~. enclose the amount in pa.
rentheses. If both basic and supplemental amount.
are included, brea~C'ut in remaoo. For multip~ pro.
grnm funding, use totals anc show progrnm brell':'
outs in """arl-.5, Item de:'initions: 32a, amount
awarded by Fede,al Government: 32b, amount a;,.
plicant will contribute: 32c. a...ount from State. if
applicant is not 8 Stllte; 32d, amount from Icy...al
govemme"t if appliCBnt is not 8 local government;
32e. amount from any othllf sources. explain in
rema rl-.5,
Dete iictlon was taken on this roquesl.
Dllte funds willl:>ecome aveilable.
Hem
35.
Name and telephone no. of agency person who ~n
provide more infonTIation resarding this assistance.
Date after which fund. will no longer be available.
Check appropriate box a5 to whether Section IV of
form contains Federal remerKs and/or attllchment
of additional remerks.
For use with A-95 action notices only. Name and
telephone o~ person who can assure that appropri.
ate A-95 action has been taken-If same as person
shown in Item 35, write "same". It not applicable,
write "NA".
36.
37.
38.
Federal Agency Procedures-special considerations
A. Trellsury Circu/llr lOS2 compliance, Federal age-ncy will
assure proper completion of Sections I and II I. If Sectio;) I
is bi!ing completed by Federal agency, all applicable items
must be filled in. Addresses of State Information Recep.
tlon Agencies (SCIRA's) are provided by Trc.asury [X)part.
ment to each agency. This form replaces SF 240, which
will no longer be used.
B. OMB Circular A-95 comp/illnce, Federal agency will as.
sure proper completion of Sections I; II, and III. This form
is required for notifying all reviewing cleerinshouses of
major llctlons on all programs reviewed u:1Cler A-95,
Addresses of Slllte and areawide clearinghouses ar~ pro,
vided by OMS to each agency. Substantive differences
betwe€n applicant.s req~st and/or clearinghouse recom'
mendations. and the project as finally awarded will bi!
explained in A-95 notifications to clc::ringhouses,
C. Speciel nole. In mo~. but not all Stotes. the A-95 Stat~
clearinghouse llnd the (TC 1 OS::?' SCIRA ue the same
office, I n such Cllses, the 1--.-95 8wnrd notice to the State
clearinghouse will fulfill th~ TC 1082 a\'(;!l rd notice re'
Quiremcnt to the State SCI RA, Duplicate notification
should be avoided.
STANDARD FORM 424 P/\GE 4 (10-75)
I
Office of Management and Budget Circular A.110 (7/30/76)
'ATTACHMENT N,--CIRCl1LAR No, A-IIO
PROPERTY MANAGEMENT STANDARDS
L Thls attachment prescribes uniform
standards governIng management of prop-
erty furnIshed by the Federal Government or
whose cost WRS charged to a project sup-
pOrl,cd by a Federal grant or other a!,reement,
Federal sponsorIng agencIes shall requIre re-
clplenLs to observe these sta.ndards under
grants and other agreements and shnll not
Impo.e addItIonal requIrements unless spe-
elllcally required by Federal law, Thc recIpI-
ent mo.}' use Its own property manl'(':ement
standards and procedures provided It observes
the prol'lslons of thIs attachment, This at-
tftchment also applies Lo subreclplents as
referred to In parngraph 5 of the basic cir-
cular.
2. The followIng dellnltlons apply for the
purpose of thls l\ttaehment:
ft, Ileal prCfpcrly,-{I""al pToperty means
Iftnd. Including land Improvement.s, struc-
tures and appur\.cnlUlces thereto, but ex-
cluding movable machlneT}' and eqUipment.
b, Pcrsonal pr()perty,-Per.;onal propeny
of any kind except real property. It may be
tangible-having phYSical eXlstence, or Intan-
gible-having no physical exIstence, such as
patents, Inventions and copyrIghts,
c, Nonezpendablc pcr30nal prCfperty,-Non-
expendablc personal property means tangIble
personal .property h'H'lng a useful life of
more than one year and an acqUisItion cost
of t300 or more per unIt exempt that recIp-
Ients subject to Cost Accounting Standards
Board regulatIons may use the CASB stand-
ard of r.500 per unIt and useful l11e of two
years. A recIpient may use Its own definItIon
of nonexpcndable personal prCfpcrty provIded
that the definltJon would at least InclUde all
tangIble personal property as defined abovc.
d. Ezpend<rble personal properry,-Expend-
able personal property relers to all tangible
personal property other than nonexpendable
propert)'.
e. E:u:es3 propcrty.-Excess property mcans
propert)' under the control of aD}' Federal
agenc)' that. as determined bv the head
thereof. Is no longer required f~r Its needs
or the dIscharge of Its responsibilItIes,
1. Acquisition cost of purchased ncnc.:r-
pcruiablc perS07lal prC>pcrtY,-Acqulsltlon cost
0: an Item of purchnsed nonexpendable per-
so"al property means the net Invoice unIt
prIce Of the propert)' IncludIng the cost of
modificatIons, attachments, aece~sorlcs or
auxUlar)' "ppttro.tus n~cssary to make' the
propert)' Uso.ble for the purpose for which It
was acquired. Other ehaq'es such as the cost
of Installation, transportation. taxes. dut)'
or protect!\'e In-transit Insurance. shall be
Ineluded.or excluded trom the unit acquisI-
tion cost In accordance with the reclplent.s
regular aeeoun tlng practIces,
b' Exempt prC>pcrty,-Exempt property
means tangible per~onal property acquired In
whole Or In' part ""Ith Fedcral funds. and
title to whIch L5 vested In the recipIent. wJth-
out lurther obllgntlon to the Federal Govern-
men:. except as pro"lded In subparagraph 6a
be10...., Such unconditional vesting or title
wUI be pursuftnt to an)' Federol legislatIon
that pro"ldes the Fedeml sponsorll1l; agency
with n.dcqu:Lte nuthorJtv.
3, Real propcrtY,-Each Federal sporosorlng
agency shall prescribe requlrement.5 for re-
CIpients conCernIng the use nnd dIsposItIon
0: real property acquired pRrtly or whoJjy
unacr grnnts or otl)cr ngrccn1cnts. Unjcs.s
ot~1crw1se pro\'Jded by stnLutc. such rcquJrc-
nH'nts. as R r.:1JninHlfl1, ~hnJl co:~t..!1ln the
:':>llo,,"'lnl;:
R, TILle to real property shall vest In the
recipient sUbJee:. lO the condition that the
reCIpient shnll use the renl property 10: the
nuthorlzed purpose of the proJeel,'';s long as
I:. Is needed,
b, The recipient shall obtain approval by
the Federal spon=rlng ll/:ency for lhe u-"e of
renl propert)' in olher projects ...'hen the re-
cipient determines that tlle property Is no
lon(;er needed for the purpose of the Orlhlnftl
proJect. Use In olher projects shall be limited
to th""" under other federaJly sponsored proJ-
ects (Le.. granL5 or other ar,reements) or pro-
grnITlS that have purposes consl~l.cnt wJth
tho"" nuthorl:1,cd for support by the }"t,deral
sponsorIng ,,!,eney.
c. When the real property Is no lon!:er
needed as provided In a and b above. the
recipient shall request disposition Instrue-
tlon.5 from the Federal sponsorinG n!:enC}' or
Its iucccs50r Federal 1;J){)1l50rl nr: nJ~Cllr:r. The
Federal spon50rlnc a{!ency shftlJ observe the
follOWIng rules In the disposition Instruc-
tions:
(I) The recIpient may be permitted to re-
tain title n.!\.cr It compensates the Pederal
Government In Iln amount compu\.cd by ap-
plylnc tbe Federnl percentaGe ot pttrtlclpa-
tlon In the cost of the orl{:lnal project to the
fair market value of the property.
(2) The recipient may be dIrected to sell
the propert)' under guidelines provIded by
the Federal sponsorIng aGency and pay the
Fe:leral Government an amount computed
by applying the FeOeraJ percentage of par-
ticIpation In the cost of the orlg1nal project
to tbe proceeds lrom Sl\Je (Illter deducting
actual nnd reasonable selling aDd lix-up ex-
penses. It an}'. from tbe slUes proceeds).
When tbe recipient Is authorl?.cd or required
to sell the property, proper &nles procedures
sball be established tha.t provide for competi-
tion to the extent pra.ctlcable aDd result In
the highest possible return.
(3) The recipient may be dIrected to trans-
ler title to the property to tbe Federal Gov-
ernment provIded tbat ID such cases the
reclplcnt shall be entitled to compensation
compul.cd by applyIng the reelplent.s per-
centage of participatIon In the cost Of the
program or project to the current. faJr market
value of the property.
~. Fcc1eraly-olDn.ca non.cxpendabLc pCT30nal
propcrty,-Tltle to federally-owned property
remains vested In the Fe:!eral Government.
Reclplcnts shall submIt annuall)' an Inven-
tory listing ot federally-owned property In
thel: custody to the Federal sponsoring
agency, Upon completIon of the ngrcement
or wben tbe property Is DO longer needed.
the recipient shall report the property to
the Federal sponsorIng agency for furtbcr
agene)' utl1l7.atlon,
11 the Federal spoDsorlng agcncy bas no
further need for the property, It shall be
declare:! excess and rcporl.cd to the GeneraJ
Sen'lees AdmlnlsLrtlon, Approprlal.c dlspo~l-
tlon Jn5tructlons ....m be Issued to the re-
Cipient afl.er completion of the FederaJ
acenc)' revle....
5, Exempt property,-When StAtutory au-
thOrity eXists. (e.(':.. P.L. 85-93-\., 42 U .s.C.
1892) title to nonexpendable person..l prop-
erty acquirc:! "''1th project funds. shall be
vesLe::1 in the recipient upon AcquisItion un-
less It Is determined that to do so Is not In
furtherance of the objectives of the Federal
-"ponsonng aeency, When tItle Is ves\.c:! In
the reclplcnt. the recipient shall have no
other obll(':Atlon or nccountablllty Lo the
FederAl Government for Its use or dlspOfil-
tlon exeept as provided In Ga below.
G, Other none=peruiable properIy,-When
othcr nonexpenduble tanGible personal pror-
erty Is acquired by a reCipient with project
fund., title shall not be tnkcn b). the Fe::-
cr.') C'rQ\C"rnn'lC'n: but ~hAIl 'r("st. In the- re-
cipient -"ubJe-c:. ).0 the follo",ln/: conditions:
a, Right '0 Ircn.'fcr til/c.-For Items of
nonexpcndnble per~onal propcrty havln(': l\
unit Rcqulsltlon cost of ~I.OOO or more. the
Federal 5ponsorlnl; ngency mRY rc:=;crvc the
rlgh 1 Lo tmnsfe: the tI tie to the FedernJ
I
A-110:20
Government or to a third party named by
the Jo'cdCTI\I Government when ~uch third
party Is otherwise eli(':llJle under existing
sL"tutes. Such reservation shall be subject to
the followlnr: sLandards:
(I) The property shall be appropriately
hlentlfie.:1 In the grallt or other agrcement
or other.'lse made known to the recJplent
In ",ntlll!;,
(2) The Pederal Bpon."Orlng agency shnll
Issue dlsposl tlon In.5trucllolls wi thIn 120 cal-
cntJn.r dnys nflcr the end of the Federal SlIp-
port of the project for ...'hlch It was nequlred,
If the Fedcrnl sponsoring a(':ency IRlls to 16.5ue
dlr.po"ILlon IlIstruetlons wlthlll the 120 cRI-
enelnr d..y period. the reclplcnt shnll apply
the sl.nndards of subparagraphs Gb alld Gc
ns l\pproprIR\.c.
.. (3) When the Federal sponsorlnr; a(':eney
exercises Its rIght to take title, the personal
property shall be subject 10 the provisions
lur federaJlY-<lwned nonexpendable property
dISCUs."Cd In paragrnph 4. above,
(4) Whe.n title 15 transferred either to the
FeOernl Oovenunent or to a third pftrty the
provisions of subparagrRph (Ie (2) (b) should
be loll owed,
b. U3C of other tanvible nonezpcndalJle
property jor which the reci]};cnt ha., tItle,
(I) The recipient shllIJ w;c the property
In the project or program lor which I twas
acquired as 'long "" needed. whcther or not
the project or prohram con tlnucs to be sup-
ported by Federal funds. \Vben no longer
ncoded for the orIginal pro)ect or program,
the recipient shaJl use the property In con-
nection wIth Its other federnlly nponsorcd
activities. In the loll owing order of priority:
(a) Activities, In tbe followlnc order of
priori ty:
(b) ActivIties sponsored by other Federal
nrrenclcs.
(2) Shared U3e,-Durlng tbe time that
nonexempt Donexpendable perwnal proper-
ty Is held for use on the project or program
for which It was acquired, the recIpient
sbnll make It Rvallable lor use on other proJ-
ects or prolOrnms If such other use will not
Interfere wIth the work on the project or
progratn lor wblch the property ......s orlgl-
naJly a<>qulred. Plrst preference for such
other use shaJl be given to other projects or
proEn""ffiS sponsored by ,the Federal Ilgeney
that financed the property: second preter-
eDce shall be given to projects or programs
sponsored by othcr Federal ngeneles, If the
propcrty ls owned by the Pederal Govern-
ment. use on other actlvltl"" DOt sponsored
by t.he Fedcral QQvernment shall be per-
mIssible II authorized by the Federal agency,
User cha.rgcs should be considered 11 appro-
prla I.e.
c. Dupo.rition of other noncrpcrui!,ble
p7'opcrty,-Wben tbe recipIent no longer
needs tbe propert). as provided In 6b above,
the property may be used for other actl?l-
LIes In accordance wltb the follOwing stand-
!\Tdr. :
(I) Noncrpend<rble p7'opcrty with a unit
acqui.,it;on C031 of less than Sl,OOO,-TI1e re-
cipient may use the property lor other Ilctlvl-
ties ",1thout reImbursement t.o the Federal
Government or sell the property and re-
tnln the proceeds,
(2) Noncrpcnaablc personal p7'oper(y with
a unit acqui.sition cost 0/31,000 or mor-c.-
TI,e recipient mn}. retain the property for
other uses provided thRt conlpcnsntlon is
made to the orl[::1 n..1 Fedcml sponsorl n(':
figcncy or ILs successor. The amount of com-
pcnMlIon shnll be computed by nppl~'lnl;
the perrenl'''be of F'Nlernl plU'tlclr5:IClIl In
thr co..c;t of the origlnf\) project or prol;'rnrn t.o
the currcnt fair markct value of the propert~',
If the reclplcnt has no nced for the properly
nnd the prOpcrL)' has further use value. the
Tcclplcnt ShHJl rC<lue:;t dlspo.<;1tion InstTuc~
Uons from tile or.lg1unJ sponsoring ngcnc)'.
I
Office of Management and Budget Circular A-110 (7/30/76)
The F'e<le",1 .pon.orlng Rgenc~' shall deter-
mine whether the propert)' can be uHd to
meet the agene)". requirements, If no re-
quirement eXIs!... withIn that agency, the
avallablllty 01 the property shall be report-
ed to the General Services Administration
by the Feoeralagen"y to determine ...'hether "
requIrement lor the property exls!... In other
Federal agencle., TIle Feder,,1 sponsorlnl;
agency shall Issue 1I1.5tr\lcllons to the recipi-
ent no Inter than 120 days alter the recipi-
ent', requcst and the lollowlng procedures
shall govern:
(a) II so Instructed Or II dIsposition In-
structions nre not Issued within 120 calen-
onr unys nller the recipient'. rel/lIest. the
recIpient shnll sell the property alld reim-
burse the Federal aponsorlng agency an
amount computed by applying to the sales
proceeds the percentage 01 Federal partici-
pation In the cost 01 the orIgInal project or
progrnm, However. the recIpient shall be
permlLted to deduct and retain lrom the Fed-
eml share .100 or ten percent 01 the pro-
ceeds, whlch"ver I. greater. lor the reCipient's
selling and handling expenses,
(b) It the recipient Ls Inf-tructed to 6hlp
the property elsewhere. the reCipient shnll
be reImbursed by the benefiting Federal
agency ",'Ith an amount which Is computed
by applying the percentage 01 the reclplent's
participation ID the cost 01 the orlglnRI gmnt
project or program to the current lair m"rket
vn.lue of the propert).. plus any reasonable
shipping or Intel1m stornge costs Incured.
(c) If the recipient Is Instructed to other-
wise dispose 01 the property. the recIpient
sh,,1l be reimbursed b)' the Federal sponsor-
Ing agency for .uch cosLs Incurred In Its
d1.5posltlon.
d. Propcrty manapemcnt .tandard. for
nonerpendable property,-The recipient'.
property management standards lor nonex-
pend able personal property shall IDclude the
lollowlng procedural requirements:
(I) Propert). records shnll be maintained
accuratelv and shall Include :
(a) A cescrlptlon 01 the property,
(b) Manulacturer's serial Dumber. model
number. Federal stock number. national
~tock number. or other Identlncatlon num-
ber.
(c) Source of the property. IncludIng
grr.nt or otheT agreement number.
(d) Whether title vesLs In the recipient or
the Federal GOv~ment.
'(e) Acqul.ltloD d..te (or d"te received. If
the property WI<!; 1urnl.hed by the Federal
Government) "nd co.t,
(I) PerceDtage (at the end ot the budget
yeu) 01 Feder,,)" participation In the cost or
the project or progr..m tor ""hlch the prop-
erty ""85 acquired, (Not applicable to prop-
....t). lurnlshed by \he Federal QQvernment,)
Ig) Loc..tlon. u"e "nd condItion of the
property ..nd the da,te the Inlormatlon w..s
1.porte<!..
(h) Dnlt acqu\s:ltlon Cost,
(I) Ultimate dl'posltlon datil, Including
date 01 dhpo.aland ""Ies price or the method
used to deLermlne CUrrt!nt falr me..rket YL)ue
"..h~rc .. reclpl~nt compen:\&t.es the Federa.)
"PonsOrlng asency lor Its .h"re
(2) Property owned by the Tedcr..) QQv-
ernment musl be muked to IndIcate Ted-
oral ownershIp,
(3) A physic,,] Inv.ntory or property shall
be taken ..nd the results recoDclled ..'Ith the
property recorm a. t lea..st once eVer~ two
yeR.rs. Any d1nerenc~f, between Quo.nlltie$ de-
termined by the physical Inspection and
lhClse ..hown In the accounting records shall
be lnvestlg"ted to determine the c..use. 01
the dltTerence, The recipient shall, In connec-
tion wIth the In"entory, verity the existence.
cunent utlll2.atlon, and cOlltlnued need lor
the property,
(4) A control ,,)..t..m .ha11 be In e:'foct to
Inlurt R.dequn.t.e IH\1"f,unrd6 t.o pre,"{"n~ l~.
damage. or th.a 01 tho property, Any 10",
damage. or thelt 01 nonexpendn"le proprrtx
.hall be Investigated nnd lulll' documented;
It the propert)" Will owned hy the I'"ederal
Government. the rerlplent .hall promplly nO-
tlty the Federal 'p,>n.orlng agency,
(5) AdeqUately maintenance procedure.
shnll be Implemented to keep the properly
In good condlllon,
(6) Where the recipient Is IH.thorlud or
required to sell the property. proper .ale.
procedures shnll be eHabll.hed ",'hlch would
provide tor competltlon to the extent pmctl-
cable and rcsult In tho hIghest possIble re-
turn,
7, EIpendnlJle per.,onnl property,-Tltl. to
expendablo pef"onnl property shall ve.t In
the reCipient upon acquisition, It there '10 a
residual Invontory ot such property exceeding
SI.000 In totnl aggregate laIr market value.
upon termination or completion 01 the gr..nt
or other agreement. and the property Is not
needed lor nny other tederally spon.ored
project or progTl\m. the recIpient .h..1l ret..ln
the propert)' lor u..e on nonteuerally .pon-
sored actlvltleo, or sell It, hut mu"t In elttrer
ca.e, compensnte the Federal Government
lor 1t.1i share. The amount 01 compensRtlon
shnll be computed In the same m..nner l\S
nonexpendable personal property.
8. Intangible property.
a. Invention. and patent,,-ll an)' program
produces patentable Items, patent rlgh!...
proce"-.es. or Inventions, In the cours. 01
",'ork .ponsored by the Federal Government.
such fact shnll be promptly and lully report-
ed to the Federal 6ponsorlng ngency. Dnless
there Is a prior I\greement bet""een the re-
cipient and the Federal sponsoring ngency
on disposition 01 such Items. the rederal
spon$Orlng agency shall determine whether
protectlon on the Inventlon or discovery shnll
be sought. The Federal sponsoring "gency
will also determine how the rlghto In the In-
vention or discovery-IncludIng rights under
any patent L'lSlled thereon--;shnll be alloc..ted
and admInistered In ord.. to protect the pub-
lic IDterest CODslstent "'lth "QQvernment
Patent Policy" (PresldeDt's Mcmorandum
for Heads of Executive Departments and
AgeDele.. August 23. 1971. and statement of
Government Patent Policy as prInted In 36
F.R. 16889).
b. Copyright.,-Except .... otherwl... pro-
,'Ided ID the term. "nd conditions 01 tbe
agreemeDt. the a"thor or the recipient or"an-
17;l\tlon Is lree to copyrlr-ht any books. pub-
IIcatlons.or other copyrightable malArl...Js
developed ID the course of or under a r.d-
eral agreement. but \he J"eder"] sponl>Orlng
agenc)' shall reservo .. ro)'alty-!ree. noneX-
clusive and Irrevocl\ble right to reproduce.
publloh. or otherwise u... ..nd to ..uthorlae
othors to use. the work for Government pur-
p05eo,
ArrAcHMu'T Q,--CncuLAa No. A-IIO
"~OCUR.NrN'T BTAl"I'DAJ\D5
1. Thl. "ttachment provides .t..nd..rd. for
use by' recipients In establlshln. procedure.
lor the procurement 01 supplies. eqUIpment.
construct.lon "nd. other service, \l.'Jth Tederal
funds. TheJ~ 5ta.nd&rds Are rurnl"h~d to en~
sure th..t &\lch mat.erb.h And. servlc~" Are ob-
ta.lneC 1n Ln e.:recttv~ m~nntT ....nd In com-
pliance with the provision. 01 ..ppllc"'blc red-
er..] I....., ..nd executive orders. No addltlon..1
procuroment st&ndards or requlremen\.< sh",1l
be Imposed by the l'"edeTl<1 sponsoring aFen-
cles upon reclplen1.6 unless speclOcal1)' re-
quired by :rederal stntut.e or executive orders,
2, The standards contained In thl. att...ch-
In.nt do not relieve the recipient of the con-
tr..ctu..l responslbllltleo ..risIng under Its
contra.cu. The reclp'ent 15 the rf'&pon~blt AU-
thority. wlt.hout recour~e to the Federal spon-
~orlnr, "Bene)" rr-gnrolng the settlen1ent ~n(l
&nUS:~f\C~20n o~ 1\.11 oontra.ctun.l nnd Pl.Cm1nu.-
I
A-110:21
tratlve .UUM "'hlng out 01 procurtment.1i
enlered Into, In .upport 01 a .,.rRnt or other
apeemollt, Thl. Inclllau dispute" 01 I'd m.,,
protf":~tl oJ a,,'nrd, JlO\tr04' .,.,duf\tlon or othtr
matte" of ft, contrnctul\l nl\turt:. :M.f\ttrTS con-
crrnln. vlolntton 01 I"w RTf to be relerred to
s..ch local, State or Tederal authority M may
have proper }ur~IcHon,
J. Reclplenta m"y uae their own procure-
ment pollcleland proc"d\lrl\l, now. vcr. all...
clplcnts .hall adhere to tho .tandards eet
lorth In pnrngr..phl J And ~.
a, The recipient .h..1I mnlntaln a eode or
standl\Td.s 01 conduct th..t .hall govern the
perlormance 01 I'" omce.., employCt<s or
agent. enj;aged In the awnrdlng nnd admln-
Istratlon 01 eontrl\ct.1i \I"lng l"ederal lund.,
No employee, omeer or agent shall pnrtlclpate
In the .electlon. ......ard or admlnl.tratlon 01
a contr..ct In which P'eder..1 lundo are \..ed,
",'here, to hlo knowledge. he or his lmmedlf\te
tamlly, partners. or orgl\nl"-atlon In ",'hlch he
or hI. Immedl",te lamlly or partner h..." a
nnnnClnl Inlere.t or ..'Ith whom h. Is neFo-
tlatlng or hl\& anl' arranr,ement concerning
pro.pectln employment. Th. reclplent.1i. 01-
neers. employee. or agents .h,,1I neither .ollc-
It nor aoo.pt grnt\lltl.... la\'ors or any thin"
or monell\ry vf\lue from c.ontrf\ctor~ or poten-
tIal contractors, :!>uch Itandnrds shall provide
lor dl.clpllnary' nctlons to be "pplled lor ,'10-
lations 01 s\lch standards hy the reclpleola'
omcers, employee. or ,,!!enla.
b. All procurement t.rAnBtictloTUl shlUl be
conducted In a monn... \<) provide. to the
,maximum extent practical. opcn and lree
competItion, The recipient should b. alert
to Org1\nl",,,tionnJ conmcts 01 .nterest or noo-
oomp..tltlH prRCtlce. ..mong oontrn.ctoTll
th..t mny restr1ct CT ellrnlnf\te CO<npetlUon
or ot7herW1..... restr-.l.. Ir...cle, In order to en-
sure objeettTo contr8.Ctor pcr!OrIDn.nce and
ellmlnl\t<> unlaJr eompetltlve advantn{!e, con-
trn.cllors th'a t develop 0<" draJ't speclfica \.lo=,
requlre-ments. rl.l\temente 01 work. Invlt.a-
tlons tor bIds and/CT requC61.s lor propoo.al.
sh'C'uld be excluded ll'Ol1l competlng lor Bucb
procuremenls. Awnro. Ilh6lJ be ms.de to the
bldd<:T 10lJ"er01" who.oe bld/on..- 18 r""'POn&lve
to tho IoOllcllatJIon e.nd lot rD05t advlCntageotl8
to tM recl~t. price and othcr In.ctoTll con-
sidered, Sollcltatto". &hell clearl,. oet forth
..11 requ1rementa that the bidder lot!en>r must
!uUIII In order lor h~ bkI/olJ"er to be eT1>lu-
"ted by tho re<:lplen~. Any and n.ll blct../otfers
llU\y ~ N:jeote<l when It Ia In the re<:p1ent'.
InlAr.., to clO 80,
c. All reclpl~nls .."all e.st<\bllsh procure-
~nt procechJrel tb&t proTIOV tor. at a min-
Imum, the followlll€ }>"OCedurA.!Tequlrements,
(1) Proposed procur=>.,nt a.ctlon~ shall
lollow a proc...ctu,.. to ~ure the avoldR"c.
01 pUrclla.6lng unn~y or <hIpllcatlve
It.am&, "'here "ppropn..k. an an..l~... shall
bo ~ 01 le""'-" "nd purch......., ...1\.e1'nRtl,...,
00 de\.ormlnc wh~h "''Quid be t.h<< moet
oconoml('.a.l. practlca.l proc-urement,r(2) f.ollclta\loJU tor ~ooOe ILIld ~rvlces
.h..11 be boue<l upon .. clear and ..ccurate
d..cT"lptlon of t.ne ,ect1nlc..l requJrem.enls
lcr the m..\4'rlal. ProdlK\ or ~Ice to be
procured, Such .. d....r\?t.Ion sha.ll not, In
corn.pet.lt1'r-e proeur.men\l, cont.aln fe.aturM
which unduly restl1ct com.petltlon, "Brand
T'lLmr or .QUAl" de5CT~t.k)Ju, m.a.y bot- u...c:
~ a me~nl to o.enne \.he perlormLno~ or
at-her a.all~nt ,eQuJre:rnenb of a procuremrnt,
Lnd when a.o \l1IIC'd thf' &p.elnC fef\t.ures 0: tht
n",m..a i>....nd ....h.1ch mu.t be m"t by bldd.rs/
on-erors shLlI M cl....,-Ir op..ciOed,
(3) Poslthe otTorts :>h..11 be mMIe by the
recipient.' to utilize small buslneM aod mJ-
norltv-owned busln.... sources 01 .\lpolle.
and ~orvle.el, Such eflon.s .hould allow thet<<<
s.ourc.. the maximum le......lble opportunity
to compok for contrse\& utlllLlnf; J"wdeTfl.1
funo<<.
(~) The t)'"pe 01 pr<xurln, IJUtrl.mentll
used, ..1:" fiT-cd price OOD\,-,..c"" 00<1\ r.Lm-
I
Office of Management and Budget Circular A-110 (7/30/76)
bur""ble contrae.ts, purchR-.<-C orders, Incen-
tIVe contrncts, shall be det,crrnL'1ed by W1e
rl'Clplent but must be nppruprlllte for the
pRrtlOu!nr procurcrncnt a1ld [or pronlOUIlr,:
the best Invcrl'lSt of the progrnnl Involvr.d.
The "cost-plu.5-n-percentage-of-cost" meW,-
od of con trn..ctlng shnll Ilot be used,
(5) Contrnet.' shnl be mnde onl)' wIth re-
sponsible con trn.cU>rs who p<X.;sct;6 the po-
tentlonllJ nblllty to perform succe.;.<;fully
under the t,cmlS "nd condItIons of II pro-
posed procurement, Consldern.L1on shill 1 be
gIven to such lllJ\.tt,crr. as cont.rnctor 11lte{;Tlty.
rcoord of p/l.St pcrforrruulce, finnllclnJ IIlld
lCChnlonl rc..'K>urcc.~ or n.cq~;31blllty to ot.her
nccc:;;sru-y rCSOUj('.oCS.
(6) All propo,;ed sole source COil tract., or
whrre only one bId or propo:;nJ l.S re-cclvcd
In which the '4:r:rCj:nte expenditure 13 ex-
r=tcd 1.0 exceed f..5,OOO shnll be subject to
PTlor n.pprovnl nt the dlscretl"" of !.he Fed-
ern.l sponsorl ng lL{!CIlCY.
(7) Some form of prIce or COGt annlysLs
6hould be mnde In connection wIth every
procurement neWOll, Prlc(' nnnlys16 TTllIY be
accomplished In vnrlous wnY3, IncludIng the
comparIson of prIce quotnWons submItted,
mnrket prIces ll.nd slmllllr IndIcIa. together
wlt.h dJ5COunts. C<x;t annl)'EIs Is the review
IInd evaluntlon of ench clement of eo,;.t tQ
detcnnlne ronsonablencs:;. alloca.blllty and
allowabUlty,
(8) ProouTement record1; ILnd file<; for pur-
C1HLSCS In eX'CeoSS of .10,000 r.hall Include the
follo"'Jng:
(Il) Basis for contractor selection;
(b) JU6tlflclltlon for lack of competItion
,,'hen compcwtlve bJds or oflers e:e not
obtaIned.;
(c) Ba.sls for "....ani cost or prIce,
(9) A system tor contract adm1nlstrotlon
ahall b(, malnto.Jned tQ ensure contractor
conformance \\.tth terms. condItions nnd
6peclflcatlons or the contrect, and to ensure
&llequ"te Ilnd timely followup or all pur-
chascs. '
~, The recLplent shall Include. In addItIon
tQ provIsIons to define a sound Pond complete
. agreement, the toll owing prov1s10ns In all
contracts, These provIsIons shall Il)so be ep:
plled tosut>=ntrll.cts,
II, Contracts In excess of 1o10,000 sh1l.l1 con-
t.a~n contna.ctual provisions 0:- cond~tJons
that ,,'J)I 1I1Io'" for ILdJnJnlstrntlve, contrac-
:;Up,] or legal remcdJes In Instances In ""hIe')
contractors l"Jolatc or brench contrac".. tenns,
and provide for such remedIal actions as
m..,y b(, approprln.t.c,
b, All contrncts In excess of ~IO,OOO shrdl
contn1n sult..o.ble pro\'islons for t.c:-mJnn.Uon
by the rectplent Including I.he mnnner by
"'hlch tcrmJnatlon wlli b(, encctcd and the
bt<sLs for settlement, In nddltlon, suc.., ror,-
tra.cts shall describe condItions under ,,'hleh
the oonLrll<:t TnAY be termInated for dc1ault
a.:; wcU as ('.Qnul tlons where the contrf\.Ct. nUl}'
lHo Lerrn.J Ilnlrc b<"C11.1I~C of CIT'CUlllSlHnc~ be-
yond the control of UH~ (XJIlt.rRctor.
c. In a.iI ront.rn.cts for con~tructlon or fI~.
c.Hit \' 1rnpro\'crncn t 8 'u,:a.rded for rnorc thnn
S-](Xl',OOU, rN:lplenll; slll1,lJ oUst'n'e t.he oolld-
lng T'Cqulrements prOVIded In ALt"clunent D
to this cIrcular,
d. All conLrnct., a"'nrcled by reclplcnt.' nnd
thelr oontrlLCl..or.5 or subgT1\nt.e~ hlLving 8.
vnllle of more thnn ~IO,OOO, sh rLl 1 conteLln a
pro\'lslon requlrulg oompltnncc ,,1t,h Exccu-
tl ve Order 11246. entl tied "Eq ua] F..mploy-
ment Opportunity." n, amended by Execullve
Order 1 1375, nnd 1\5 supplemented III Depart-
ment of Lnbor rcgulntlons 141 CFR, l'nrt 60),
c. All contracts nnd suhhrnnl..'5 In excess of
32,000 JOT construction or rcpnlr lJ.wnrded hy
rcclricnLs Rnd subrcc1r1cn'L<-; shnll iucl\ldc n
provifilon lor cornpllnncc with lhe Copelnnd
"Anti-Kick nack" Act (18 U,::;,C, 874) ...,
supplemented In Department 01 Labor
regulntlons (29 CFR Pnrt 3), This Act pro-
VIdes that each contractor or ,ubgrnntee
shall be prolllblted trom Inducing. by nn)'
means. an)' person employed In the cOllstruc-
tlon. complellon. or repair of public worl:, to
gl ve up an)' part of the compensation to
"'hlch he Is other,,'lse entItled, The recIpient
sllnll reporL rdl suspected or reported \'Iola-
tlons to the Federal 'ponsorlllg agency.
L When required by the Federal pror-ram
legl61lltlon. a]1 construction contracts
a....nrded by the reCipients ...nd subreclplents
Of more than ~2.000 shall Include a pro\'lslon
lor compliance "'Ith the DnvLs-Bacon Act (40
U.S,C. 276a tQ "-7) IInd ns supplemen'l.cd by
))epllrtment or Labor re!;ulatlons (2B CPR.
Pllrt 5). Under thIs Act contractors shall be
required to PBY ".ages to laborers and me-
chanics at a rate not less than the minimum
,,'ages specUled In a wage determInation made
by .the Secretary of Labor. In additIon, con-
tractor.; shall b(, required to pny wages not
less than once a week.. The recIpient shnll
place Il copy of the current prevnlllng wnge
determination Issued by the Department of
Lnbor In each solicItatIon and the a"'llrd
Of " contra.ct shall be condl,tloned upon the
acceptance Of the "'abe determination, The
recipIent shall report a.ll suspected or re-
ported violatIons to the Federal sponsoring
agency,
!;, Where applicable, IlII contracts awarded
by recIpients In excess or ~,2.000 for construc-
tlcn con.....rft.CL~ nnd In eXceE:5 01 t.2.500 :or
other contracts that. 1 n't'ol\'e the employment
of mcchanJc~ or laborers. shall InclUde a prc-
\'Islon lor compllnnce ....Ith sectIons l03 and
10i or the Contract \Vork Hours RDd Safety
Scandnrds Act (~O U,S.C, 3~7-330) as sup-
plemented by Departmen.c 0: LAbor regula-
I
A-110:22
tlons (29 CFR, Part 5), Under ~ectlon 103
or the Act. eneh conlrnclor sh:\Jl he re~
q\ltr~d t.o rOlllputc the \I.'f\~CS of ('\'cry In('-
clwnlc RJ\d lnburcr nn the basis of f\ st.andnrd
work <iHY of f. IlOUr.;; nnd n folf\llctnrd work
week of 40 hours. \\lork 1n cxc(',ss of the
slandnrd ~'orkdny or workweek 1.c; pcrnlls..sllJle
pro\'lded lhl\.t. t.he .....orker 15 COlllpCIl~nted nt n
rnl.c of not less thnn ) ~'2 Urnes the unsle
ralC' of pey for RlI hO\lrs .....orted in excess
of fl hours in nny cnlcndnr dny or 40 hours
III the workweek, Secllon 107 of the Act. Is
nppllcnbJc to cOI\..c;lruclion work filId provJdes
tllnl no Inhorer or nH~chnnic shnJl be required
to work jn Sllrro\JIH1Inb~ or under \"'orklllb"
condltlons u'hlch nre \Insnnltnry, h:\7Iardo\1s
or danerr01l5 \":1 his hrnlth and sufely H$ dr-
\.(-'rJlIlned under cOllslrur.t101l Sl\fcty Hlld
hcnlLh sLnndards prolll\llgntC'd uy lhe Seef<'-
tnry of Lnbor. Thc~c rcquirC'IH(,IlL'; do 'lot
npply to the purchn.scs of slJppllc~ or nlntc-
rial::- or nrttr.lcs ordinnrlly n\'hilnblc on the
open ll1nrkCl, or contro.ct.s for lrnn~portuLlon
or traJ1~n)I~c;joJl or Inl.rll1,-=ence.
h, C<Jntrllct., or nl&eements. tile prlllclpnl
purpose of U'lllch 1::; La crcntc. ue\'clup or lJn.
flrovc producl.s. procc~sc~ or n)ct.lJod::-;; or for
explorlltlon Into tields thnt dlrcclly concern
public health, snlety or welfnre; or contrncLs
In the field of science or Icchnology III which
there hns been Jlttle<',.::nllicnnt experience
out.,lde of work funded by J-'ed ern I 1\.'>$151-
nncc, shall contR.ln f\ notice to the efrect ,thnt
Inntt.crs reg-arding rlght..<; to jn\'cntlons nnd
mnt.erln)s generated under the contrnct. or
ng-reement Ilre subject t.o the regulntlon, Is-
sued by the Federnl 'ponsorlllg ngency nnd
the recipIent, The contrnclor shnll be ad-
\'I"ed M to the source of nddl tlonlll In[orma-
tlon rcr.nrd~ng these rnnttcrs.
L t.ll negoLlat,cd contrnots (except those
of "10,000 or less) a"'!\rded by recIpients
shllll Include" pro\'lslon to tbe effect that
the reclplen'" the Federnl spon._orlng nr-enc)".
the Comptroller O"neraj 01 the United States.
or any or rthelr duly nuthort7.cd Tcpresr.ntn-
t!\'es, shall hllve acce"s tQ any books, docu-
ments. pnpc:-s nnd record~ of the contrnctor
which Me dIrectly pertinent tn Il GpeCllic pro-
~rnm lor the purpose 01 making audits,
examInations, ex""rpt.s and trnnscrlptlons,
J, Contrncts IInd subg-ran'ts of amounts In
excess Of 1100.000 ,ball contnln a pro\'Lslon
that requIres the reCIpIent t.o a<:ree to com-
ply ",ah all appllcable standl\.Tds. orders or
re!(ulntlons Issued pursullnt. tQ the Clenr Air
Act 01 :970 (42 U,S,C. l857 et s~r;.) and the
FedeTllI W..t.cr PollutIon Contr"j Act (33
V.S.C. 1251 et seq.) f\.S amended. Vln}nt1on.!'i
shnll be repoTted tQ the Federa] spYrtSOrlng
n~ellcy and the Rel:'lona] ornee of the 1;:n-
\'Ironmenta] Protection Agency,
IFR Doc,76-21904 FlIed 7-29-76;8;45 am]
I
APPENDIX H
OMB
Circular A-122
I
I
Office of Management and Budget Circular A-122 (6/27/80)
Of PICE OF MANAGEMENT AND
BUDGET
C4rcotaf A-122, '"Cost Principles lor
Nonpf"ofit Organizations"
AGENCY: Office of Managp.ment and
DudCel.
ACTK>N: Final Policy.
June 2.7, HWO
To The Heads of Executive
Departmer:ts and Eslnblishmenls
Subject: Cost principles for nonprof1t
organiza tions:
1. Purpose. This Circular estnoli:;hes
principles for determining cosls of
grants, contr;J::ls !lnd other iigrr~ement~
with nonprofit organizations. Il docs nol
apply to colleges ar.d universilies which
nre covered by Circular A-2T. Stnle,
local. and fecp.rnlly rccognized !ndiLln
triba 1 governments which arc covered
by Circular 74--4; ar hos;;itllls. The
principles are designed to provide that
the Federal Government bear its fair
share of costs Excent where restri~:ted or
prohihited by law. ~he principles do not
..!tempt to prescribe'the extent of cast
shar::1g or matching on'grants, contracts,
or ather a8reemel:ts. However. such cost
sharing or ma tching shall no: be
accomplished through L1rbitrary
limitatior:s on individual cost ele;nenls
by Federal agencies. Provision fer profit
or othp.r increment above cost is outside
the scope of this Circular.
2. Sr.:persession. This Circular
.~llpersedes cost principl.:::s issued by
individual agencie~ for non'pront
organization,
3. Applicability. <l., These principles
shall be used by all.Federal agencies in
determining the ,costs of work performed
by nonprofit organizalions under grnnts,
cooperative agreements. cost
reimbur:;ement contracls. and other
contracts in which costs are used in
p.ir.ir:g. administra lion. or se'ttiemenL
All of these instruments arc nereaftcr
referred to as awards. The principles do
not apply to awards under which an
organization is not required to acco;ml
to the Government for actual costs
incurred.
L. All cost reimbursement sulwv.-ards
(subgrnnts. subcontracts. etc.) are
subject to lhose Federal cost principles
applicable to the particular organiziition
concerned. Thus, if a subaward is to a
nonprofit orgnnization, this Circular
shall f1pply; if a" suba ward is to a
commercial organization. the cost
principles applicable to commercial
CC:1cerns shall apply; if a subaward is to
a college or unil'ers:l,\'. Circulur A-Z1
shilll onpl\': if il sub<l\\'ilrd is to n S:;tlP.,
local.'or fedefl!l11yreOO~ized IrWlIn;
trilJal government, Circula.r 74-4 shall
apply.
4. Definitions. a. "Nonprofit
organization" means any corpora tion,
trust, lI'Ssocia tion. coopera tive. or other
organization whh:h (1) i~ operated
primarily for scfcntific. educa tional,
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) hospital6; (iii) Slate.
local. and federally recognized Indian
tribal governments; and (iv) those
nonprofit organizations which arc .
excluded from coverage of Ihis Circular
in accordance with paragraph 5 below.
b. ''f'rior approval" means secu~ing
the awarding ager:cy's pc:rmission in
advance 10 incur cost for those items
tha t are designated os requiring prior
approval by the Circular, Generally Ihis
permission will be in writing. Where an
item of cost rf'quiring prior approval is
spcdfied in the budget of an ,award,
approval of the budgct const'itutes
approval cf that cost.
5. Exclusion of some r.onpro.{j[
orgonizolions. Same nonprofit
o;'j1anizalior:s, because of their size and
nature of opera tions, can be considered
10 be similar to commercial concerns for
purpose of applicability of Cost
principles. Such nonprofit organizations
shall operate under Federal cosl
principles applicable to commercial
concerns. A listing of these
organiza lions is conuineG.in
Attachment C. Other organizations may
be added from time to time.
6. Responsibilities. Agencies
responsible for administering programs
that involve awards to nonprofit
organizations sball implement the
provisiom of this Circular. Upon
requesL implementing instruction shall
be furnished to the Office of
Management ~.ld Buc4:eL Agencies shall
designate a liaison official 10 serve 6S
the agency representative on matters
relating to the implementation of this
Circular. The name and title of such
representative shall be furnished to tbe
Office of /V..anagement aDd Bu~el
within 30 days ofilie date of this
Circular.
7. A twchmen t.s. The principles and
rela led policy guides are set fortJl in the
follo\o\'ing Attachments:
Attachment A--GeneraJ Principles
Attachment B-Selected Hems of Cost
Attachmenl C-Nonprofit
OrganizatiollS Not Subject 1Jl This
Circular
I
A-122:1
8. Requests for exceptioJlS, Tbe Office
of Management and Budget may grcll1t
exceptions to the requirements of this
Circular when permissible under
existing law. However, in the interest of
achieving maximum uniformity.
exceptions will be permitted only in
highly unusual circumstances.
9. Effectil'e Dote. The Qrovisions of
this Circular are effective immediatelv.
lmplementaUon shall be phased in by'
incorporating the provisions into new
awards made after the start of toe
organization's next fiscal year. For
existing awards Lhe new principles may
be applied if an organization and the
cognizant Federal agency agree. Earlier
implementation. or a delay in
implemeotation of individua3 p!'1:r'rifdoll5
is also rermitted by mutuLll agreement
between an' organiza lion and the
cognizant Federal agp.ncy.
10. inquiries. Further information
concerning this Circular may be
obtained by contacting Ihe Financial
Management Branch, Budgel Review
Division. Office of Management and
Budget. Washington. D.C. 20503.
telephone (202) 3gH773.-
James T. Mclnlyre. Jr.,
Direc/or.
ICircular No. A-12.2]
Attachment A
General Principles
Table of Con/er.ls
A. Basic Consideralion6
1. Composition of lotal costs
2.. Faclors affecting allowabiiily of costs
3, Reasonable cOBls
4. Allocable costs
5. Applicable credits
0. Advance understandings
B. Direct COBls
C. Indirect Cosls
'\
D, Allocation of Indirect Costs and
Determination of Indirect Cost Reles
1. General
2, Simplified allocation method
3, Mul1iple allocation base method
4. Direct allocation method
5, Special indirect c~t rates
E. Negotiation and ApPiOval of Indirect Cost
Rates
J, Definitions
2. Negotiations and npproval nf rates
ICircuJnr No. A-I:!:!]
Attachment A
Ger:eral Principles
A. Dosie Considcraliolls,
J. Composilion of tolal costs, The tolel cost
of an award is the ~um of the allow2ble
direct ond allocable indirect cosls less any
npplicabJe credils,
2, Factors o.rrecting cllowobi/ily of costs,
I
Office of Management and Budget Circular A-122 (6/27/80)
To be allowable under an award, costs must
meet the following general criteria: '
a. Dc reftBonable.for the performance of the
award and be oUocable thereto under these
principles.
b. Conform to aDY limilalions or exclusions
sel forth in thcse pI;!nciplc6 or in the a Wllrd
as 10 Iypes or amount of cosLilem.'.
c. Be cODsislc{lt wjtlJ policies and
procedures that apply uniformly to both
federally financed and olber activities of Ihe
organization.
d. De accorded consistellttreatmcnL
e, Dc determined in nccOPdllnce wlll1
generally accepted accounl'ing principles.
f. Nol be included ns a cosl or used to meet
cost sharing or matching requirements of any
other federally Iinanced program in either the
current or n .prior period.
C. Be adequately docun;enred.
3. Reasunable casJs. A cosl is reasonuble
if. in its nnture or amount. i(docs not exceed
that which would be Incut~ed by 'a pn:dent
person under the circumslll'nces prr.vaning a\
the time tbe decision was lMde to incur the
costs. The question of the reJsonableness-.of
specific cos:s must be scrutinized with
particular core in connecli(l1l with
organizations or separate divisions thereof
which receive the prepond'era:Jce c,(their
support from awards made' by Fede'rJI
agendes.]n determining the reasonableness
of a given cost. consideration shall be given
to;
a. Whether the cost is of a type generally
recognized as ordinary Bnd necessary for the
opera lion of the organization or the
performnnce of the award.
b. The restrain 15 or rel]uirements imposed
by such faclors as generally accepted sound
business practices. arms l'en,gth bargaining,
Federal and State laws and regulations, and
tenTIS and conditions of the award,
c. Whether the indivldli'B16concerned acted
',,'ilh prudence ir. Ihe circumstances.
considering their responsibilities to the
organiza tion. its members. employees. aDd
clients, the public allarge. and the
Government.
d, Significarit deviations from [he
established practices of the orgJnization
which may 'unjustifiabl)' increase the award
cosls.
4. Allocable cas Is.
a. A cost is allocable to a particular cost
objective. sucr. as a grant. project. service, or
other activity. in accordance with the relative
benefits received. Acost is allocable to a
Governmenl award if il is trealed
consistently with other cosls incurred for the
same purpose in like circumstances and if j'\;
(1] Is incuITed specifically for the award.
(2) Benefits bolh the award and other work
and can be dis:ribuled in reasoDable
proporlioD 10 the benefits received.
(3) Is neccssary to the overall operation of
the organization. although a direct
relationship to any particular cost objeclive
cannot be shown.
b. Any cost allocable to a particular award
or other cost objective under these prinr.iples
may not be shifled to olher Federal awards to
overcome funding .deficiencies, or 10 avoid
restrictions imposed by law or by the lerms
of ihe award,
5. Applicable credit.,
a, The term applicable credits relers to
those receipts, or reduction of expenditures
which opera te to offset or reduce expanse8
items lhat ere allocable to awards 85 direct
or indirecl COStl. Typic.1 eXRmples 01 6uch
lransactions are: purcMse discounts. rebates
or allowances. recoveries or indemnities on
losses, insurance refund.. and adju6lmenls of
overpaymenls or erroneous char8es. To lhe
extent thaI such credils accruing or received
by the organization relate to allowable cost
they shall be crediled to the Government
either RS a cost reduction or cash refund 05
a ppropri 0 te.
b. In some inslances. the amounts ,eceived
form the Federal Government 10 finance
organizalional activities or service operations
should be treated as applicable credits.
Specifically. the concept of nelling such
credit items against rcl~ted expendilures
should be o;:plied by the organizaton in
delerming the rales or amounts \0 be
organizal;on in determining the rales or
amaounts 10 be charged \0 Federal awards
for services rendered whenever the f~cilities
or other resources used in providing sllch
'services have bep.n financeJ directly. in
whole or in part. by Federal funds;
arc) For rules covering program income
(i.e.. gr06s income earned from federally
suppor!ea activities) see Allachmenl D of
OMB Circular A-1l0. '
6. Advance and understandings. Uneer any
given"award the reaeona blencss ane
allocability of certain items 01 costs may be
dilTicullto determine. This particularl)' true in
connection with orgize tioru; thaI receive a
preponde'rance of their ~uPPOl"Hrom Fede.ruJ
agencies. In 'order to avoid ~ub5equent
disallowance'or dispute based 011
unreasomib]enes,s or nonalloeability. it is
oftp.n desirable to seek a wrilien agreeme:ll
with the cognizant or awarding 'agenc); in
advance of the incurrence of lipecial or
unusal costs. The absence of an advance
aFreement on any element of cost will not. in
itself. ariec! the reasonableness or
aIiocability of lhat element.
B. Direct Casts
1. Direct costs Rre those thaI can be
idenlified spp.cifical!y w\lh a particular fi:laJ
cost objective: i.e.. a particular award.
project. service. or other direct acti\'it\' of an
crgftnization. However. a cost may no't be
assi~ned to 6n award as a direct cost if anv
oihe'f cost incurred for the same purpose, i~
like circumstance. has been alior.ated to nn
award as an indirect cost. Cosl identified
s;JedflcRII\' with Rwards are direct cost of the
a wards an'd are to be assi~ned directly
therelo. Cost identified specificaliy with other
fiJ:al cost objectives of the organization arc
direcl costs 01 those cost objectives and are
not to be assignee to other award; directly or
inriirectly.
2, !\n}' direct cost of a minonl:nount m;l\'
b~ treated as an indirect co;;1 olor reasons '/If
pruc::ca!ity where the accollnt treatment fur
such oos: is co~sistcnlly applied 10 all fin"l
cost objecti\"es.
J. The cost of certain acti\'i\ies arc not
allowable liS charges to Federal awards (sec.
for example. fund raising costs in paragraph
I
A-122:2
21 01 Allnchment B), However, even though
these COstl ftre unallowable lor purposes of
computing charges to federal awaros. the\"
nonetheless must be treated aA direct cosl'lor
purposes of determining indirect cosl ra les
Rnd be allocated their share of Ihe
organizalion'. indirect costs if they represenl
acti\'illeswhich [1) include the soJaries of
personnel. (2) occupy spiice. and (3) benefit
from the organization's indirecl costs.
4. 1be costs of activilies performed
primaril)' aA a service \0 members, clients, or
the w,neral public when significant nnd
necessary to the orgunizalion's mission mUBt
be treated as direcl cosls when or not
ollo,,'uble and be allocllted on equltahle
share of indirect costs, Some ex~mp\es of
these types of activities include;
II. Muinlenllnce of member~hip rolls.
subs'c.riplions. publicatiom, und relnted
funclions.
b. Providing service6 and inlormation to
members. legislative or administrative
bodies. or the public,
c. !'romolion. lobbying. ond other lorms of
pubiic relation~.
d. Meetings and conferences except those
held 10 conduct lhe general administration of
Ihe orgrmi<:a lion.
3. Mninlenacne. protection. and investment
uf ~pecial funds not u~ed in operation of the
orgunizalion.
L Administration of group benefits on
behelf of memhers of c1iellts incllldin1' life
,und hospital in~uronce. annuity or relirement
plans. financial aid. etc.
e. Indirect Cas/.
1. Indirect costs are those that have been
inCl:rred !or common or joi:lt objectives and
cannot lie readily. identified with a particuluT
final WSc objective. Direct cilsl of minor
ar.lOun,3 ma\, be trealed as indirect cosls
under Ih~ cQ'noilions described in paragrllph
B.2. abu"e. After direct costs have been
detl<rmillcd and assigned directly to a ....ards
or other work RS appropriale. indlfect costs
Ilrf those rerr.;;ining to lie ullocaled to
uellrliting co~, 0bjectives. A cost m:>y not he
allocaled to an award 8S an indirect cost if
ull)' othp.r cosl incurred for the iame purpose.
in like cir~unutances. ,has been a9Big~ed to
an i/,,:ard as a direct cost. '
2. Because of the diverse characteristics
R~cl accounting practices of nonprofil
organizations. it is not possible to specify the
tYpf<S of cost which may be classified IlS
inoirp.ct cost in all situalion, However. typical
examples of indirect cost for many nonprofit
o:'ganizations may include depreciation or
use allowance..s o~ buildings and equipment,
the costs of operating and maintaining
f.lcililies. and gelleral adm;oistra lion Rnd
1'['lIeral expenscs. such a~ the salaries and
expenses of executive officers, parsonnel
administration, ami a,ccounling,
n. Allocatiun of lndirecf Cast and
Dr-/ermination of Jndirect Cast Rutes.
1. General.
(I, Where a nonprofit orpanizR lion has only
(Jne n~ii;or lunction, or \\'~,eJe ail its major
functions l1enefit frurn ils indirect cosls to
Approximately the snme ocgree, the
"lIoeBlioB of illdi:ec\ costs Bnd Ihe
.,
I
Office of Management and Budget Circular A-122 (6/27/80)
computation of "n indirect cmtule~' be
accomplished through simplified allocation
procedures ft8dosc:ril>ed in paragraph 2
below.
b. Where an organir.ation haa several maior
functions which benefit from i1s indirect costs
in varying degrees. alloca tion of indirect
costs may require the accumula tion of auch
costs Into separate cost groupings which then
are allocated individually to benefiting
functions by means of a uase which best
measures the rlllative degree of benefit. The
indirect costs allocated to each function ore
thr.n distributed to individual awards and
other activilies included in tha t dunction by
means of un indirect COil raters).
c, The determination of what constitutes an
organization's major functions will depend on
its purpose in ueing; thelypes of services it
rcnoers to the public. ilB c1ienls. nnd its
members; and Ihe ,.mollnl of efforl It llcvotes
to such activities os fund raising. public
information and membership activities.
d. Specific methods for allocating indirect
costs and computing indirect cosl rates along
wjlh the condilions under which each melhod
should be used are described in paragraphs 2
through 5 below.
e. The base period for the allocation of
indirecJ costs is the period in which such
costs ore incurred and accumulated for
sllocation wo work performed in that period.
The base period normally ahould coincide
with the organization's fiscal year. but in any
evn\, shall be so selected as 10 avoid
Inequities in the allocation of the costs.
z. Simplified allocation method.
a. Where an organization's major functions
benefit from i1s indirect costs to
approximately the samE' degre. the u!location
of indirect costs may be accomplished by [i)
separating the organization's total costs for
the ba~e period as either direct or indirect.
<<nd (ii) di,'iding the lotallllloweble indirect
costs (net of ap'plicable credits) by an
equitaule distribution base. The resuil of this
proccss is an indirect cost ra te which is used
to distribute indirect costs to individual
a wards. The rale should bc expressed as the
percentage which the lotal amount of
allow:Juie indirect costs bears 10 the basc
selected, This method should alos be used
where an organiz.atioo has only one mdjor
funclion encorr:passing a number of
individual projects or Activities. and mav be
used where the l~vel of Federal a wards -to an
organizetion is relutivc:y small.
b. both the diroct costs and the indirect
ccsts shull eXClude cap;I&1 expenditures and
unallowable costs. I iowe'.'er. ur.allow/lble
costs which represent 1\ctivHies mt:st be
included in the direct costs under the
conditions described in paragraph B.3. above.
c, The distribution uase ma}' be total direct
costs (excluding cepital expenditures and
other distorting items. such liS major
subcontracts or s:Jb!;ranls). direct scluries
and wages. or other base which results in an
equitable distribution, The distribution base
shall generally exciude paitiGipan! suporl
costs as defined in paragraph 2\1 of
Atlachment 13.
d. Excc~s1 \!\'hcrc a ~J.led2! rClt'{:;) i~
required in accordance with paragraph 0.5
below. the :indirect.a>1lt Tale d...~doped, ";"der
the abnve prinr-ipk'l .ia3ffi)liCJIok ,\D aU
award, alwe O<1lani:ul.iion. -II a spocial
ra tel s) ~ required.appropria te modiIiCli lioru
shall be made in order \D develop ,the special
rate(s).
3. Multiple allocation base method.
a. Where an o~aniz8tion'5 indiroct costs
benefit its maiodunclions in varying degrees.
such costs shall be accumulated into separate
cost groupings. Each grouping shall then be
allocateo individually to bencfitlng fUllctions
by means of a hase which hesl measures the
relative benefits.
b. The groupings shall be estnhllshed so as
to permit the allocation of each grouping'on
the basis of benefits provided to the major
functions. Each groupi~ should constilute 8
pool of expenses that ore of like charRcter-in
terms of the fllnctions they benefit Hnd in
ten"s uf the ulloeulillll I...." whlub I",.t
measurs the relutive benefits providd to each
function. The number of separate groupings
should be held within practical limits. laking
into considerulKm the materiality of the
amounts iiwolved and the degree of precision
desired.
c. Actual conditions must be taken into
aceounl in selecling the base to be used in
allocating the expenses in each l1rouping to
benefiting functions. When an allocation can
be made by assignment of a cosl grouping
directly to the function benefited. the
allocation shall be made in that manner.
When the expenses in a grouping are more
general in nature. the allocation should be
made through the use of a selected base
which produces results tha I are equitable to
both the Government and the organization. In
general. any cost element or cost related
factor associated with the organization's
work is potentially adaptable for use as an
allocation base provided Ii) it can readily be
expressed in terms of dollars or other
quantitative measures (total direct costs,
direcl salaries and wages. staff hours applied.
square feet used. hours of uSilge. number of
documents processed. population served, and
the like) and (ii) it is common to the
benefiting functions during the base period,
d, Except where a special indirect cost
rilte[s) is required in accordance with
puragTilph 0.5. below. the separate groupings
of indimct costs allocated to each major
function sholl be agrp.gated and treated as a
common pool for that function. The cosls in
the common pool shall then be distributed to
indivisual awars included In that funclion by
use of a single indirect cost rate,
e. The distribution base used in computing
tile indirect cost rale for each function mov
be total dirp.cl costs [excluding capilal -
c;penditures end other distorting items such
uS major subcontracts and subgrantsJ. direct
~alaries and wages. or other ase which
results in an equitable distribution, The
distribution base shall generally exclude
participant support costs as defined in
ptlragraph 29. Attachment B. An indirect cost
rate should be developp.d fir each 5l'parale
indirect cost pool developed. The rate in each
case should be stated as the percentage
which the amounl of the particular indirect
cost pool is of the distribution base identified
I
A-122:3
wi t h tha t pooot
.(, Direct allocation method,
a, Some rnmprofit organizations. \reat all
costs 58 direct costs expect general
administration and general expenses. These
organizations generally eepllrale Iheir costs
into thre basic categories: (i) General
administration and general expenses. (ii)
fund raising, and (iii) other direct functions
(including projects performed under Federal
awards). Joint costs. such as depreciation,
rental costs. operation and maintenance of
facilities. telephone expenses. and the like
are prorated indivisually as direct cost to
each category and to each award. or other
activity using a base most appropriate to the
particular cost being prorated.
b. This method is acceptable provided each
joint cQ.sl is prorated using a base which
nccurnlely mensurcs the bencfil~ prnvirlco to
elleh IIwllnl ur "Iher lIellvliy. Till, \JII""" Illllllt
be established in accordance with resonable
criteria. and be supported by currenl data.
This method is compalible with the
Standards of Accounting and Financial
Reporting for Voluntary Heallh and WeUure
Organizations issued jointly by the National
Health Council. lnc.. the National Assembly
of Volunlarv Heallh and Social Welfare
Organizati;ns. and Ihe United Way of
America,
c. Und'.lr this method, indirect costs consist
eclusively of general administration and
general expenses. In all other respects. the
organization's indirect cost ratess shal be
computed in lhe same manner es that
described in paragraph D.2 a uove.
S: Special indirect cost rates. In some
instances. a single indirect cost rale for all .
activities of an organizallon or for each major
function of the organiza tion ay not be
appropriate. since it would not take inlo
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 that performed under a single
award or it may consist of work under a
group of awards performed in a common
environment. the factors ma\' in21ude the
physical location of the work. the level of
administrative support rE'quired. the nature of
the facilities or order resources employed. the
scientific disciplines or technical skills
involved. the organizational arrangements
used. or anv combination thereoL VVhen a
particular ;egmenl of work is performed in an
environment which appears to genera te a
6ignificantly different level of indirect costs,
provisions should be made for a separa te
indirp.ct cost pool applicable to such work.
The separol.e indirect cost pool should be
developed during the course of the regular
o !ioca tion process. and the separa te indirect
cost rate resulting therefrom 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 malerial.
E, Negotiation and Approval of Indirect Cost
nales,
I
Office of Management and Budget Circular A-122 (6/27/80)
1. Definitions, As used in this section. the
followl~g 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 nonprofil
organization on behalf of all Federal
agcncir.s.
b. "Predetermined rote" means an indirect
cost rate. applicable to a specified current or
future period, usually the organization's fiscal
vear. The rate is based on an estimate of the
~osts to be incurred during the period. A
predetermined rate is nol subject to
adjustment.
c. "Fixed rote" means an indirecl cost rate
which has lhe slime characleristics as 0
predetermined rate. except that the difference
between the estimated cosls and the actual
cosls 01 the period covered by the ro Ie is
carried forward as an adjustmcnlto the ralc
computation of a 6Uhsequent period.
d. "Final rate" means an indirect cost rate
applicable 10 a specified past period which is
based on the actual costs of the period. A
fjnal rate is not subject to adjustment.
e. "Provisional ra te" or billing ra Ie means a
temporary indirect cost rate applicable to a
specified period which is used lor funding.
interim reimbursement. and reporting indirect
costs on awards pending the establishment of
a ra Ie lor the period.
f. "Indirect cost proposal" means the
documentation prepared by an organization
to substantia Ie its claim for the
reimbursement of indirect costs. This
propcsal provides the basis for the review
and negotiation leading to the establishment
of an organization's indirect cost rate.
g. "Cost objective" means a function.
organizational subdivision. contract, grant, or
other work unit for which cost data are
desired and for which provision is made to
accumulate and measure the cost of
processes, projects, jobs and capitalized
projer:ts.
2, Negotiation and opprol'a! of rotes,
a. Unless different arrangements are
agreed to by the agencies concerned, the
Federal egency wilhlhe largest dollar value
of awards with an organization will be
designated as the cognizant agency for the
negotiation and approval of indirect cost
ra tes and. where necessar\'. other ra tes such
as fringe benefit and computer charge-out
ra tes. Once an agency is assigned cognizance
for a particular nonprofit organization, the
assignment will not be changed unless there
is B major long-term shift in the dollar volu~
of Ihe Federal awards to the organizalion. All
concerned Federal agencies shall be given the
opportunity to participate in the negotiailon
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 that special operating lactors
effecting its awards necessitate special
indirect cosl rates in accordance with
paragraph 0.5 above, it will, prior 10 the time
the rates are negotiated, notify the cognizant
agency.
b. A nonprofit organiza tion which has not
previously established an indirect cost rate
with e Federal agency shall after the
organization is aDvised that on aword will be
made and, in no event. later Ihan three
monlhs alter the effective datE of the award.
c. Organizations that have previously
established indirect cost rales must submit a
new indirect cost proposal to the cognizant
agency within six months after the dose of
each fiscal year.
d. A predelermined rate may be negotiated
for use on awards where there is reasonilble
assurance. based on past experienr:e and
reliable projection of the organization's costs.
that the rate is not likel\' to exceed a rote
based on the organizali~n's actuol costs,
e. Fixed rates may be negotiated where
predetermined roles are not considered
appropriate. A fixed role, however, shall not
be negoliated if (i) all or a substantial portion
of the organization's awards are expected to
expire before the carry-forward adjustment
can be made: (ii) the mix of Government and
non.government work at the organi7.ation is
too erralic to permit an equitable carry-
forward adjustment: or [iii) the organization's
operations Ducluate significantly from year 10
year.
f. Provisional and final ra les shall be
negotiated ,where neither predetermined nor
fixed rates are appropriate.
g. The results of each negolia tion shall be
formalized in a wrillen 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 between the cognizant
agency and the nonprofit organi;;alion, the
dispute shall be resolved in accordance with
the appeals procedures of the cognizant
agency.
i. To the extent that problems are
encountered among the Federal agencies in
connection with lhe 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]
Allac!lment B
Selecled llems of Cost
Table oj Contents
1. Advertising costs
2. Bad debts
3. Bid and proposai costs (reserved)
~. Bonding costs
5. Communication costs
6. Compensation for personal services
7. Contingency provisions
~, Contributions
11. Dep~rciatlon and use allowllnces
10. Donation~
11. Employee morale. health andwelfarc
ccsts and credit.
1:. Entertain;nent costs
13. Equipment and other copital expenditures
H. Fines and penalties .
j 5. Frin~e bcnefit.
15, Idle 'facilities and idle captCity
17. Inuependent re~ellrch and devclopmenl
(resen'ed]
19, Insurance and indcmnific~ liDn
19. Interest. [und-raising. and investment
manngem(:nt costs
20, Labor rel~tions costs
I
A-122:4
~1. Lf'ss~s on other a','o;ard.
22, M;liotenonce a:1d r<:pAir costs
23, M;.tcrials /Vld suppl;e.
24, M.,etings. conferences
2.5. MemLer.hips. sub.criptions. aud
professional aclivity cosls
20, Organization costs
Z7. O\Crlirne. exlra-par shift, and multishift
premiurr..
20. Pal'e char!1cs in professiunlll journalll
:9, Participanl support costs
3a, Pa tenl costs
31. Pcnsion pllln.
32. Plunt 8ecurity costs
33. Prcaward costs
34, Profession,,1 service costs
36. Profit. and lossel on disposition of
depreciable property or other capital
assets
Jf), Public ir1formation sen'ice costs
37. Publication lInd printing cosls
:in. Rearrangement and alteration costs
3n, Recon,'ersion costs
40. Recruiting costs
41. Relocation costs
42. Renl.al costs
43. Roya lties nnd other costs for If!;e of
palent. and copyrights
44. Severance pay
45. Specialized service facilities
4rl, Toxes
47. Termination costs
40. Training and educotion costs
4n, Transportotion costs
50. Travel costs
[Circular No, A-1Z2]
Allnchrncnt B
Selected Items of Cost
Paragraphs 1 through 50 provide principlcs
to be applied in estnblishing \he allowubility
of certain items of cost. These princ:iple.
orply whether a cost is trea led as direcl or
indirect. Failure to mention a particular item
of cost is nol intended to imply that it is
unallowable: rather determination os to
ollowability in each case should be based 00
the treatment or princirlel provided for
similar or rela ted items 01 cost.
1. Advertising co.U. 'I
a. Advertiaing cosll mean \he C08tS of' .
media servicea and associated cosls, Media
odver1ising includes magazines. newsp8p~rs.
radio and television programs. direct maiL
exhibits. and the like.
b. The only adverti~in8 costs allowable are
lhose which arc solely for (i) therecrullmenl
of per80nnel when considered in conjunction
with all other recruitment C08tS. as sel forth
in paragraph 40: ,(ii) the procurement of goods
and sr.rvicC's: (iii) the di8posal of 8urplu.
materia 15 acquired in the performance of \he
award except when ol1lanizations are
reimbur5ed for disposals at a prcde\ermined
amount in accordance with Allac:hmenl N of
OMB Circular A-11O: or [i") specific
requirements of the award.
2" Bod debts. Bad -debts, including losses
(....hether actual or estimated) ari~ing lrom
uncollectible accounts and other claims.
related collection costs. and relalod legal
cosls, Are unallowable.
3. Bid ond proposal casU. (reserved)
4, BiJnding costs,
)
Office of Management and Budget Circular A-122 (6/27/80)
a, [)ontling co~ts arise whrm Ihe
Government require~ ,as~urance agllin~l
lir,llnr.iallo!~ 10 it.self or others hy reason of
the ar.t or default 01 the organization, They
IlriSr. o\so in instances where the organi%:alion
rcquirt!s similar ossuranoc. Included ore such
hnncls as bid. performance. payment.
adnlOce payment. infringement. and fidelity
bunds.
b, Cosls of bonding required pursuant 10
Ihe tern's 01 Ihe lI....ard are allo\\'lIole.
c. Cosls 01 bonding requlrcd by Ihe
org.1ni7,alion in the generel conduct of its
upr.rations arc allowable 10 the extcnlthal
such bonding Is in accordance with sound
bllsines~ practice and the roles and pTemiums
<He reilsorif.ble under the clrcumslances.
5. Communication OO..t.. Costs incurred for
lelephone sen:iceR. local and long distance
telephone calls. telegrams. radio!lrllms.
postage and the hl:e. are .llowftb!c.
5. Compensation far personol.<en'ices.
a. Definition. Compens.ation lor pel'1lonal
services includes /Ill compe;]salion paid
currenth' or accrued bv the orgar:i::ation for
service; 01 employees -rer.dered during lhe
period of the award (except os otherwise
provided in paragraph g. below). II includes.
but is notlimiled 10. aalaries. w.ages.
director's and executive committee member's
fees. incenlin awards. fringe benefits,
pension plan cosls. allowances lor oIT-site
1'<1.1'. incentive pay. location allowances.
herdship pay. aDd cosl 01 living difierentials.
b. A/Jowabilitf. Except os otherwise
~;Jecifically provided in !his paragraph the
costs of such compensation are aUowable to
the el-dentthal:
(1) Total compel1sation 10,individual
employees is reasonable for the services
rendered snd conforms to the established
policy of Ihe organiz:a lion consistently
applied 10 both Govemmentand Don-
Government activities; and
[2] Charges to awards whether ~eted as
direct or indirect costs ere determinl<d !lnd
supporled 0\ required in this paragraph.
c. Reasonableness.
(1) When the organiz:ation is predominantly
engaged in aClivities other than tho~e
sponsored by the Government. compensation
for employees on Governmant-sponsored
work will be considered reasonl<ble to Ihe
extent thatH is consistent with that paid lor
similar work in the org~;]iz:ation'$ other
ectivities.
(2) When the organization is Jlredominantly
engaged in Government-sponsored activities
and in cases where the kind 01 employees
required lor the Government acti\'ities.are
not lound in the organiz:ation's other
activities. compensalion for employees on
Go\'ernment-sponsored work will be
considered reasonable ,10 the exlenl Ihal it is
comparable to that paid for similar work in
the la bor marhts in which the organiz:ation
competes for the kind of employees involved.
d. Special considera/ians in delermining
allowabili/y. Certain conditions require
special consideration and possible limilations
in determining costs under Federal 0 words
where anlOunts or types of compensation
appear unreasonable. Among such conditions
ore lhe following:
(1) Compensulion 10 members of nonprofil
or~aniz;:tions. Iruslee~. direr.lors. aA~or.iales.
officers. or the immediote IHmilieA thl'reoL
Determination should he made thai slIch
compensation is rellsnnnble lor the aclual
personal services rendered ruther than a
dislribution 01 earnings in excess 01 costs.
(2) Any change in an OIgnllization's
compensation policy reslIlting in a
suuslantial increase in the orgllnir.ation's
lr.vel of compensation. particll1ftrll' when it
was concurrent with on incrense in the rfttio
01 Government awards to olher activities 01
Ihe o!1:ani7.alion or any chnnge in the
Ireotment 01 aJ\owaliility 01 spedfic types 01
compensation due to changes in Government
policy.
e. Unallowable casts. Costs which are
unnllowable under other paragraphs of thi;
Attachment shall not be IIllowable under this
paragroph soleI}' on 1l1e basis tha t they
constitute personal compensolion.
f. Fringe benefits.
(1) F:inge benefits in the form 01 regular
compensation poid \0 employees during
periods of authorized ab6ences Irom the job,
such as vacation 1eove. 6ick lellve, military
leave. aud the like. are allowoule provided
such cosls ore absorbed by all organization
aclivities in proportion 10 the relalive amount
of lime or effort actually devoted to each.
(2) Fringe benefits in tbe form of employer
contributions or expenses for social securil}'.
employee insurance. workmen's
compensation insurance. pension plan costs
(see paragraph g. below). and lhe like. ore
allowable provided such benefits are granted
in accordance ",:itb established writlen
organjzalion policies. Sucb benefits whether
treated liS indirect cosls or liS direct costs.
shall be distribuled to parlicular awards and
other activities in a manner consistent with
Ihe pa aern of benefi ls accruins to the
individuals or group of employees whose
salaries and wages are chargeable to such
awards and other aclivilies.
(3)(a) Provisions lor a reserve u:1der a self-
inSurance progrl3m foc unemploymenl
compen;ation or .....orkmen.s compensation
sre allowftble 10 Ihe extent tho: the
provisions represent reasonable estimates of
the liabilities for such compensation. and the
types of coverage. exlenl 01 coverage. and
rates and premiums would have been
allowabla had insurance been purchased to
cover the risks. However. provisions for sell-
insured liabililies wbieb do not become
payable for more than one year aileI' the
provision is made shall nol exceed the
present vaJue of \he liability.
(b) Where an organiz:alion follows a
cODsislenl poley of expensing actual
paymenls 10. 01',00 behalf of. employees or
fOmler employees for unemployment
1:Ompensation or workmen's compansation.
such.paymenls are allowa ble in the year of
-paymenl with the prior approval 01 the
awarding agency provided they are allocated
loan activities 01 the organization.
(4) Cosls of insurance on the lives of
trustees. ofIicen. or olher employees holding
positions 01 similar responsibility are
ollowable anI v to the extent that the
insurance rep~esenls additional
compensation. The costs 01 such insuronce
when the organization is named as.
I
A-122:5
ueneficiary are unallowable.
g, Pcnsi;n plan costs,
(1) Costs of the orgallization's pension plan
which are incurred in accordance wilh Ihe
eslablished policies of the organization are
allowable. provided:
(a) Such pulicies meet the test of
reasona bleness;
(b) The methods of cost allocation are not
discriminatory: ,
(c) The cost assigned to each fiscal year is
determined in accordance with generally
accepted accounting principle~ os pre~Lribed
in Accounting Principles Board Opinion No.8
issued by the American Institute 01 Certified
Public Accountants; and
(d) The costs assigned to a given fiscal yenr
ere funded lor 011 plan participants within six
monlhs aiter Ihe end 01 that year. However,
increases to normal find past 6crvice pension
costs caused by a delay in lunding the
actuarial liability beyond 30 days after each
quarler 01 the year to which such costs ore
assignable ore unallowable.
(2J Pension plan termina tion insurancc
premiums paid pursuanlto the Employce
Relirementlncome Security Acl of 1974 (Pub.
L 93-4(0) are allowable. Late payment
charges on 8uch premiums are unallowable.
(3) Excise taxes on accumulaled lunding
deficiencies and other penalties imposed
under the Employee Retiremenllncome
Securitv Act are unallowable.
h. In~en/h'e campensa/ian. Incentive
compensation 10 employees based on cost
reduction. or efficient performance.
suggestion awards. safely awards, etc.. are
allowable 10 the extentlhalthe overall
compensation is delermined to be reasonable
and such costs are paid or accrued pursuanl
to an agreemenl entered into in good laith
between the organization and the employees
before the services were rendered. or
pursuant 10 on established plan folluwed by
Ihe organization so,consislently as to imply.
in effecl. an agreement \0 make sllch
payment. . .
i. Overtime, extra pay shift. and mu/l1shif/
premiums. See paragraph 27.
j. Severance pay See paragraph 44..
k. Training and education oos/s. See
paragraph 48. ' . '
1. Support of salaries and wages, .
(1) Charge! 10 awards for salaries, and
wages, whether treated as direct cost! or
indirect cosls. will be bosed on documented
payrolls approvcd by a responsible official(sJ
01 the organizalion. The distribution of
6alaries and wages to awards must be
supported by personnel activity reports as
prescribed in subparagraph (2) below. excepl
when a substitute svstem has been approved
in writing by the Ih~ cogniz:ant agency. (See
paragraph E.2 of AlIachment AJ
(2) Reports renecting the distribution of
activity of each employee must be
maintained lor all staff members
(professionals and nonprofessionals) whose
compensa tion is chargee. in whole or in parl.
directly to owerds. In addition, in order to
support the allocation of indirect costs. such
reporls must also be maintained for other
employees whose work involves Iwo or more
luncilons or activitie8 if a distribution ollhelr
compensolion between such lunctions or
activities is needed in the determination of
I
I
Office of Management and Budget Circular A-122 (6/27/80)
the organization's indirecl cosl ratc[s) (e,g..
an Employee engaged part-time in indirect
cost activities and perl-time in a direct
function). Reports maintained by nonprofit
organizations \0 satisfy these requirements
must meet the following standards:
(a) The reports must renect an aJter.the-
Jact delermination of the actual activity of
each rmployee. Budget estimates (i.e..
estimates delermined before the servicp.s are
performed) do not qualify as supporl for
chnrges to awards.
(b) Each report must account for the tolal
activity for which employees are
compensated and which is required in
fulfillment of their obligations to the
organization.
(c:) The reports must be signed by the
individual employee. or by a responsible
sup~rvi80ry official having first hand
knowledge of Ihe activities performed by the
employee. thaI the distribulion of activity
represents a reasonoble estimate of the
actual work performed by the employee
during the periods covered by the reports.
(d) The reports must be prepared at leasl
monthly and mus.t coincide with one or more
pay periods.
(3) Charges for the salaries end wages of
nonprofessional employees. in addition to the
'supporting documentation described in
subparagraphs (1) and (2) above, must also
be supported by records indica ting the total
number of hours worked each day
maintained in conformance with Department
of Labor regulations implementing the Fair
Labor Standards Act (29 CFR Part 516). For
this purpose. the term "nonprofessional
employee" shall have the same meaning as
"nonexempt employee," under the Fair Labor
Slandards Act.
(4) Salaries and wages of employees used
in_meeting cost shoring or matching
requirements on awards must be supported in
the same manner as salaries and wages
claimed for reimbursement from awarding
agencies.
i. Contingency provisions. Contribulions to
il conlingency reserve or any similar
provision made for events the occurrence of
which cannot be ferelold with certaintv as to
tim~. intensity. or with an assurance oi their
happening. are unallowable. The term
"contingency reserve" excludes self-
insurance reserves (see paragraph 6.f.(3) and
111.a.(2)[d)): pension funds (see paragraph
6.(g)); and reserves for normal severance pay
(see paragraph 44,(b)[1).
8, ContributiO!1s, Contributions and
donations by the organization to olhers are
cnallowable.
9. Depreciaiion and use allowances,
a. Compensation for the use of buildings.
other capital improvements, and equipment
u;-; r.anc ma:.' he made through use
?!Iowanc;es or depreciation. However. except
as p,(wided in paragraph f. below a
cnmuii1ation of the Iwo methods mav not be
;:aed in cl1nrlf~ction with a single cla~s of
fixed aa.ets (e.g.. b~lildings, office equipment.
CUnlpu!er equipl11enl. etc.).
b, The compl::a!ion of use allc""ances or
,;.,preciatir,n shall be based on the
~c'!l,isi:ion cosl of the assets involved, The
"c:ul;:sition cosl of an asset donaied to lhe
or~ani7.ation by a third par'~' shall be Its faiT
market value at the time of the donation,
c. The computation of use allowances or
depreciation will exclude.
(1) The cost of land;
(2) Any portion of the cost of buildings Bnd
equipment borne by or donated by the
Federal Government irrespective of where
title was originally vested or where it
prp.senlly resides: and
(3) Any portion of the cost of buildings and
equipment cO'ltributed by or for Ihe
orllanizaliun in satisfaction of a sl<ltutory
ma tching retirement.
d, Where the use allowance method is
followed. the use allowance for buildings and
improvement (including land improvements
such as poved rorking areas. fences, and
sidewalks) will be computed at an annual
rute not exceeding two percent of acquisition
cosl. The use allowance for equipment will
be computed at an annual rate nol exceeding
I six and two-thirds percent of nC9uisition cosl.
\'v'hen the use allowance method is used for
buildings. the entire building must be treated
os a single Bsset: Ihe building's components
(e.g, plumbing system. heating and air
conditioning. etc.) cannot be segregi.!ted from
the building's shell. The two percent
Iimilation. however, need not be applied to
equipment which is merely a:tached or
fastened to the huilding but not permanently
fixed to it and which is used as furnisbings or
decorations or for specialized purposes (e.g..
dentist chairs and dental treatment unils.
counters. laboratory benches holted to the
Door. dishwashers. carpeting, etc.). Such
equipment will be considered as not" being
permanently fixed to the building if it can be
removed without the need for costly or
extensive altera tions or repairs 10 the
building or the equipment. Equipment that
meets these criteria will be subject to the six
and two-thirds percent equipmenl use
allowance limitation.
e. Where depreciation method is followed.
the period of useful service (useful life)
established in each case for usable capital
assets must lake into consideration such
factors as type of construction. nature of the
equipment used. technological developments
in the particular program area. and the
renewal and replacement policies followed
for the the individual items or classes of
assets involved. The method of depreciation
used 10 assign the cost of an Rsset (or group
of assets) to accounting periods shall renecl
the pattern of consumption of the asset
during its useful life. In the absence of clear
evidence indicatinll that the expectp.d
consumption of the asset will be significantly
greater or lesser in the early portions of its
uscfullife than in the later portions. the
straight-line method shall be presumed 10 be
the appropriate method. Deprecia lion
mct.nods once used shall no! be changed
uniess approved in advance by the cognizant
Fecp.ral agency. V\'hen the dellreci;s1ion
method is introduced for application to assets
previously sllbject to a \Jse allowance. the
c(lmbin~tion of use all'Owances and
c1cpreciat;on applicable to such assets must
nut exceed the lolal acquisition cost of the
assels, V\'~en the ~epreciallon method is used
f", huildin~s. a uu;Jdllll!'s shell may ue
A-122:6
segregnled from eAch building component
(e,g.. plumuing system. healmg. And air
conditioning system. etc.) Bnd each item
depreciated over its estima'ed useful life: or
the entire building [i.e.. the shell and all
components) may be trealed as a single Bsset
and depreciated over a single useful life.
f. When the depreciation method is used
for a particular class of assets. no
depreciation may be allowed on any such
aar-els that, under paragraph e, above, would
he viewed as fully depreciated, However. A
rensonllble use allowance may be negotia led
for such assets if warranted after taking into
consideration the amounl of depreciation
previously charged to the Government, the
estimated uscfullife remaining at time of
negolia lion. the effect of any increased
maintenaoc:e charges or decreased efficiency
due to age. and any other factors pertinent to
.the ulilization of the asset for the purpose
conlp.mplated.
g, Charges for use allowances or
depreciation must be supported by adequate
property records and physical inventories
must be taken at least once every two years
(i.! slatiltical sampling basis is acceptable) 10
ensure that assets exisland are usable and
needed, When the depreciation melhod is
followed. adequate depreciation records
indicating the amount of deprecin,ion taken
cach period must also be maintained.
10. Dono/ions
a, Services received,
[1) Donaled or volunteer services may be
furnished 10 an organization by professional
Dnd technical personnel. consullants. and
olher skilled and unskilled labor. The value
of these services is nol reimburSable either as
II direct or indirect cost.
(2) The value of donated services utilized
in the performance of a direct cost activity
~hilll be considered in the determination of
ti;e organization's indire'ct cost raters) and.
a(:cordingly. shall be allocflled a
I,roportion'lte share of applicable indirect
costs when the following circumstances exist:
(a) The as:;~egate valup. of the services is
Dlalerial:
(b) The services arc supported b~'-{l
~ignifil:iJnl :otmol,nl of ILe indirect costs,
incurred by the organization:
[c) The dir'lct cost activity is nOllJursucd
primarily for the benefil of the Federal
Govl,rnmenl.
(3) In those instances wheie there is no
basis for determining the fair market value of
the services rendered. the recipient and the
c(lgrlizant agency shall negoti,lle an
nppropriale aiioc<Jtion of indirect coslto the
sen.'ices.
(4) Where donated services directly bencfi!
a ~roi(;ct supported by an a ward. the indirect
costs allocated to the services ",:11 be
considered as a part of the lotal coslS of the
project. Such indirect costs may be
reimbursed under the award or used to meet
cus! sharing or matching requirements,
(5) The value of t~e dona led services may
be used 10 mecl cost sharing or matching
requirements under conditions described in
/'.Ilachmenl [, OMS Circular j\;o. A-ll0,
\\'here dona led services ore tre;tled as
indirecl cosls, indirect cost rates will
s"parale lhe v"lue of the dona lions so that
J
Office of Management and Budget Circular A-122 (6/27/80)
reimbursement will not be made,
(6) Fair market value of donated sarvices
6hall be computed as follows;
(a) Rates far volunteer sen'ices. Rates for
volunte~rs shall be consistent with those
regular rates paid for 6imilar work in other
activities of the organization. In cases where
the kinds of skills involved are not found in
the olher activities of the organization, the
rates used shall be consistent with those paid
for similar work in the labor markel in which
the organization competes for such skills.
(b) Services donatad by othar
organizations. Vllhen an employer donates
the services of on employee. these services
shall be valued at the employee's regular rate
of pay [exclusive of fringe benefits and
indirect costs) provided the services arc in
the wme skill for which the employee is
no:mally paid. If the services are not in the
same skill for which the employee is nonnnlly
paid. fair market value shall be computed in
accordance with subparagraph (a) above.
b. Goods and space.
(1) Donated goods: i.e.. expendable
personal property/supplies. and dona ted use
of space may be furnished to an organization.
The value of the goods and space is nol
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 Attachment E. OMB Circular No. A-110.
The value of the donations shall be
determined in accordance with Attachment
E, Where dona lions are treated as indirect
costs, indirect cost rates will separate thi
value of the donations so that reimbursement
will not be made.
11. Employee margie, health. and welfare.
costs and credits. The costs of house
publications. health or first-aid clinics. and/
or infirmaries, recreational activities,
cmployees' counseling services, and other
expenses incurred in accordance with the
organization's established practice or custom
for the improvemenl of working conditions.
employer-employee relations. employee
morale, and employee perlormance are
allowl1ble. Such costs will be equitably
2pportion~d to all activities of the
o,ganization, Income generat~d from an\' of
these activities ,,'ill be credited to the c~st
. thereof unless such income has been
irrevocil bly set over to employer welIare
organizations.
12. Entertainment costs. Costs of
amusement. diversion. social activilies.
ceremonials, ond costs relating thereto, suc!.
as meab'. lodging. rentals. transportation. and
gratuities arc unallowable (but see
p:,ragr?phs 11 and 25),
13, Ec;uipment and other capilal
e,\pendilures,
a, ^s used in this paragraph, the following
lcr:n.;;.ha\'cthe.m!lonin~ ~~!.!9rth below;
(1) "Equipment" means an article of
~on~xpendable tangible personal property
l1il\'mg a useful life of more than two \'eors
Brld an acquisition cost of $500 or mo;e per
Ur\Jt. An organization ma\' use its own
definition provided thai (t at least includes all
no~expendable tongible personal property as
ue.med herein,
(2) "^cqui!ition cost" means the net
invoice unit price of an item of equipment,
including the cost of any modifications.
attachments. accessories, or auxiliary
apparatus necessary to make it usable for the
purpose for which it is acquired. ^ncillary
charges. such as taxes, duty. protective in-
transit insurance. freight. and installation
shall be included in or excluded from
acquisition cost in accordance with the
organization's regular written accounting
practices.
(3) "Special purpose equiphlent" means
equipment which is usable only for research,
medical. scientific. or technical activilies.
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 are needed to make them
suitable for a particular purpose, Examples of
general purpose equipment include office
equipment and furnishings. air conditioning
equipment. reproduction and printing
equipment. motor vehicles. and automatic
dala processing equipment.
b. (1) Capital expenditures for general
purpose equipment are unallowable os 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. Capital expenditures for improvements
to land. bdldings. 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
expe!1ditures are unallowable as indirect
costs. However. see paragraph 9 for
allowabilit\' of use allowances or
depreciati~n on buildings. capital
improvements, and equipment. Also. see
paragra;>h 42 for allowability of rental costs
for land. buildings. and equipment.
14, Fines and penalties. Costs of fines and
penalties resulling from violations of. or
failure of the organization to comply with
Federal. State. and local laws and rel:ulations
are unallowable except when incurred as a
result of compliance with specific provisions
of an award or instructions in writing from
the awarding agency. '
15. Fringe benefits. See paragraph 6. f.
16, Idle facilities and idle capacity.
Ii. As used in this paragraph the following
lerms hove the meanings sel forth beluw:
(1) "Facilities" means land and buildings or
any po:tion thereof. equipment individually
or collectiveiy. or any other tangible capital
~sscl. wherever located. and whether ov."Tled
or leased by the organization,
(2) "ld!e facilities" means complete!\'
Ullllacd facilities Iho: arc e,<cess \0 the'
organi2.ation's current needs.
(:n "Idle ol'oci::," means the unlit-cd
I
A-122:7
capacity of partially used facilities. It is the
diffcrence betwecD thaI which s facility
cOllld achieve under roo per cent opera ting
time on B one-shifl basis less opera ling
interruptions resulting from time lost for
repairs, eetups. unsatisfactory malerials. end
other normal delays. and the extent \0 which
the fl1cilily was actDally u,cd Lo meet
dcmands during the ac;countin~ period. A
mullishifl basis may be used if it can be
shown that this amoun1 of usage could
normally be expected for the type of facility
involved.
(4) "Costs of idle facilities or idle capacity"
menns coets such lUl maintcnance. repair.
housing, renL and other related costs; e.g..
property taxes. insurance. and depreciation
or lIse ollowances.
b, The cosls of idle facilities are
unnlloV;;able except to the extent tbat;
(1) They ore unnecessary to meet
Ductuations in worlJoad; or
(2) Although not necessary 10 meet
Ductuations in worlJoad. they were
necessary when acquired and are now idle
becl1u6e of chnnges in program requirements.
efforts to achieve more economical
operntions. reorganiz.:Jlion. termination, or
othcr causes which cO!lld not have been
rel1sonably foreseen. l:nder the exception
staled in this subparagraph, costs of idle
facilities are allowable for a reasonable
period of time. ordinarily not to exc~ed one
year. depending upon the initiative taken to
usc. lease. or dispose of such facilities (but
see paragr'lphs 47.b. and d.).
c. The costs of idle capacity are normal
costs of doing business and are a factor in the
normal Ductuations of usage or indirect cost
rates from period to pcriod. Such costs are
allowable. provided the capacity ie
reasonably anticijlated to be necessary or
was originally reasonabie and is subject to
reduct:an or elimination by subletting.
renting. 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 idle faciJitif;s, .
17. hlti-.,;-.:ndcnt research and development
[Reserv~d:, . . .
18, Insurance and indemnificGtion. I
a. Insurance includes insurance which the
orga!1ization is required to carry. or which is
approved. under the terms of the .,ward and
any other insurance which lh~ organization
maintains in connection with the general
conducl of its operations. This para~raph
ooes not apply to insurance which represents
fringe ben!.'fits for employees (oee paragraph
6.1, and 6,g.(1Jl.
(1) Costs of irl3:Jrance ~~quired or
approved, and maintained. pur~uuntto Ihe
award are allowable.
(2) Cosls of other insurance maintained b\'
the org,mization in connectinn with the .
general cnnduct of its opel'ations are
llllowable subject to the fo11owin1; limilalions.
(a) Types nnd extent of coveT11ge shall be
in eccord'lnce with sound busine~~ practice
and Ihe ra tcs and premiums shall be
reason a bie under the circumstances,
(bl Cost~ allowed for business interruption
or other similar insurance shall be limIted to
. f
..
...'..
I
OHice of Management and Budget Circular A-122 (6/27/80)
exclude covcragp. of munagp.m~nt fces,
(c) Costs of insurance or of any pro"i~i()1l5
fDr a reserve covering the risk of luss or
diill10ge 10 Government properly are
ullowable onlv I() !he extent thaI Ihe
orll~ni2.a:i!ln i~ Ji~ble for such loss or d;lmagl~,
(el) Provisions for 8 res~rve under a 5C/f-
ins:Jra:..:c prc.gram arp. allowablr. to the
exll!ntthattr;>es of coverage, ext"nt of
co',era'gp.. r~I,e~. and prcmiums woulll h,,,,p'
bren allowed had i~surilnce been purchased
to cov.:r the ri5ks, Howcver. provision for
knnwn or reasonablv eslimu!ed scJ(-in~ured
liubilities. which do 'not become payauie fnr
more th~n one year after the provisior. is
made s\';1I1I;ot exceed Ihe present vnlue of
the !iability.
Ie) Costs of inst:rance on the lives of
trustep.s. officers. or other employees holding
positions of similar responsi!Ji!ilies arc
allo'.'..able onJy to the extent \.hut the
insurance represents additional
compensation (see poragraph 6). The cost of
such in5urance when the o~anization is
idenlified as the beneficiary is unall()w~ble.
(3) Actual losses which could ha\'e been
covered by pefl~lir.~ible insurance rthrouc:h
the purchase of insurar:::c or a self-insurance
program) are unallowable unless expressly
pro\-ided for in the awarn, except:
(a) Costs incurred because of losses not
covered under nomin(!J deductible insurance
coverage provided in kF'eping with sound
business practice are allowable.
(b] Minor losses not covered bv insurance.
such as spoilage. breakee~. and'
disappearance of supplies. which occur in the
ordinary course of opt;:rations. are allowahle.
b. Indemnifiea tion includp.s securing the
organiza lion against Iia bilities ~o third
persons and any other 105s or dameg'?. not
compensated by in~ur;lI1ce or otherwise. The
Government is obligated to indemnify the
organiza tion only to lhe extent expressly
provided in the award.
19. Interest, fund raising, and int1estment
management costs.
a. Costs incurred for interp.st. on borrowed
capital or tempornry use of encowment
funds, however mpresented. arc unallowable.
b. Costs of organized fund raising.
including financial campaigns, elJdowm~nl
drives, solicitation of gifls and betjup.sts, and
similar expenses incurred ~olelv to rai~e
capital or obtain contributions ~re
unallowable.
c. Costs of investrmmt couns"! ar.d staff
and similar expenses incurred soleh' to
enh<lnce income from 1:1Ve~t:nenls ;re
unallowa ble.
d, Fund raising and investment ae:ivit;es
shall be allocated an appropriate 51:arp. cf
indirect costs under the conditions described
in paragraph B of All<lchment A,
20. Lobar relations costs, Costs incurred in
maintaining sa lisf uCtN\' re:ations be\'.'!een
lhe organization and it; employees. including
costs of labor ma;osgement r.ommittees,
employee publications, and other relatee
activities are allowable.
21, Losses on ather awards. Any excess of
costs over income on any sward is
unaliowable as a cost of eny olher award.
Thi! incrudes, but is not limited to. the
crger;:zation's contributed portion by reA~on
of r.ost sharin~ ~grcemcnt~ or any
underrecoveries lhrough negolla tion of Jllmp
sums far, or ceilings on. int!ir~ct costs,
~2, !>!oill!enance and repair costs, Cns!s
incurred for nr.cessary mainlenilnce. repair.
or upkeep of buildings and eqllijtmelll
find,aling Government properly unless
o:herwi~e provideu for) which neither a,!u 10
the permanent I'a!up. of the property nor
uppreciably prclong it~ intended life. lJUt
ke~p it in an elf:;;;ent operillhg conodion, ilre
nlin.".ah:e, Costs incmred for ir.'[1rfl\'cmcnls
which Hdd 10 the perrn3nellt valoe of Ihe
builC:ings and efjuipment or nl'prer..ialdy
prolong their intended life shalloe treated as
cu j'i tal expendil:Jres (see pu r:\gm ph 13J,
ZJ, Moteria!.. and sllpplies, TIle cosl~ of
materi<lls and sl:pplie5 necessary to cllrry out
on I\waru arc a!:nwable. Such cosl~ should be
chiirged at lheir actual prices afler deduCling
ull cash di~counts, trode disr.ounls. rebntcs.
and Ill!owances received uy the organizalion.
\\'ithd:awals from genel al slores or
stockrooms should be charged a I cost under
any recognized method of pricing
cOllsistenlly applied. Incorr.ing transrortation
charges may ue a proper part of TfJutcrial
cos~. Maleri:lls and sl/;>;>lics chargc,J'as a
d.irect cost should include only the m:\terials
and supplies actually used for the
performance of the contract or grant. and due
credit should be given for any excess
materials or supplies retained. or returned to
vendors.
24. Meetings. conferences.
a. Costs associated with the conduct of
meetings. and conferences. and include the
cost of renling facilities. m~als. speakp.rs'
fees. and the like. But see paragraph 12,
Entertainment casts, an:! paragraph 29,
Participant suppert casts.
b, To the extent that these costs are
identifiable ,,-ilh a particular cost objective.
they should be cha:-gec to Ihat objective, (See
paragrapb B. of Allachment A.) These cr:;sts
are allowable provided that they meet thp.
generultests of allowable. shown in
Attachmer.t A to this Circular.
c, Costs of meetings ar.d conferences held
to conduct :he general administration of the
organization are allowable.
25, MembershiPs. subscriptions. and
professional activity costs.
a. Cosls of the organizalion's membership
in civic. businp.ss. technical and profp.ssional
organiza lions are 6110wa ble.
b, Costs of lhe organization's subscriptions
to civic. business. professional. and technical
periodicals are allowable.
c, Costs of allendancp. at meelings and
cClOferenees. ~ponsored by others when the
primary p<Jrpose is the cissemination of
\ed:nicol informa:ion. arc allownb!e, This
induces costs of meals. tra'ls;,ortatrcn. and
olher items incidental to sur.h altend'mce,
26. Organizotion costs, Expenditure~. such
"IS incorpora:ion fees. brokers' iees. ices 10
promoters. organizers or management
con5ultants. a:tome\'s. accountunls, ,.,r
Inve~tment cOllnsel;rs. wh('ther or not
en~I)loyees of the organization. in connection
willi esl..biishment or reor!1ani~ation of on
orgar.i<:ation. are unallowable except with
prior apprevai of the awarding agency,
27. O"erl.:Jnc. extra-par sIr/fl. and
I
A-122:8
nJl1l:ish.....tr pr( :lIiunrs. PrcmiUln~ for o\:er\ioll>"
e':tra-f1ilY sh,fIS, "n(i Inllllishift work arc
1,l;o""Lk nn,y wi:l. the prior ~Jlpro'dl of :l:c
u \Va~d;nS; :'gency e).cepl:
u, When lIl;ce~SMY \0 cope wi:h
er.le~!;enc:ies. such ~~ :lIDSC lesulting frenl
~,.f:;,j",-.~~, natu,,,1 di~as\l'rs, brenkdowns of
e'l"ipn'~nt. or 0Lc.1si'lniil o['eraljnn"l
1>:1111r!'~I:~S of" sporadic natu~e,
h \'\'hcl1 c:r.lpio.\'e~s <lre perlurJi,infl indin:cl
hmc\10lul sneh oS ildministrnlion.
n~~lilJlrnancr., 01 n(.c(Jun~:ng.
c, In thc ['"rforrnlldce: of lcsl~, L,bnralory
,pr,'n:Ju,es, ur other simii"r operations whiLn
(lrt! cn;.t;nllOtlS in nature end cannol
re:rs"n~~;~' ue illterr~lptcd or olhcrwis':
COlll~I:~:!I'U.
d, V.'hrn 111\'\"" overall cost lu the
(;o',"('n:;l\Cllt will result.
20. Po.!'c r;hu0}c. in professiano! journols,
Palle c1,arges for professional journnl
publicnlivns arc allowable as 0 nece~sarJ'
pari of research ~os:s, where:
iI. The resc<:rch p"pers reporl work
sUI'Pl1rteJ l..." lhe (;o\'ernmenl: and
b, The c\;vrges arc levied impilrtill::y on "II
n,st:ard, [:Jpcrs published bJ' the journal-.
whelh.:.. O~ no: by Government.sponsorecl
aulhnrs,
Z!l. Por!iL'ifJo.'lt sllpport c~sts. Participant
support costs arc direcl costs for it~ms such
as stipend. or subsistence allowances, travel
,"iowanr.~s, Hnd registration fees paid to or
on behalf vf participants or trainees rbut not
employees) in connection with meetings.
cnr.ferences, symposia. or training projects.
These costs are allowable with the prior
"pprovd of the awarding agency.
30. ru:cl;t costs,
a, Ccsls cr (i) preparing clisr.lusures,
reporls. and olher documents required by the
a ,,'r,rd ,lIld of searching the art to the extend
necessary 10 make such disclosures. (ii)
prefiuring documents and an}' olher palenl
costs ir. connection with the filing and
prosecutior. of a Ur;ited statP.s p;de;ot
:\pp!icoli-m where litle or royolly-free licllnse
is rC!jll;l.:d by the Govarnm~nt to be
cO:l\'cyed io Ihe Government. and (iii) genend
cour.seli;;!: services reliiling to p<lleli~and
copyright m~llers, such as odvice on pntenJ
and copyribhtlaws, regula lions. clauses, Dnd
employee agrc-cmenls arc allowable (bllt see
pllr:lg~aph 34),
b Cosl of prcparing discloslJres. reparls,
aDd other doeumcr.ts ana of se<lrchiog lhe arl
to the l'.xlenl neccssary to make disclosures.
if not reqcired by the awnrd. ?re
un"llowabk Costs in connection with [i)
filing nnd proseculing IIn)' foreign palent
application. or (iil any Uniled St;1tes pillent
:'i)plicul;on, wllerc Ihe Hward docs nol
re'll,ire cooveying title or a royalty.free
license III the GVI'ernmenl. are unallowable
(,,]so .ee parilr,raph 4J),
31. Pension pJ(1}~S, See paragraph 6. g,
J2, Plcnt sec~'rit-" costs, Necessar)'
expenses incurred 10 comply with
Cover::ment security requirements or for
fucilities proteclion. including wages,
\lnifolms, and equipment of personnel ilre
u!lDwuhle.
33. f'reo"'ord costs, Preaward cosls are
those incurrcd prior to Ihe crfective date of
ti,e <<w:rrd directly purslIuni 10 the
.
I
Office of Management and Budget Circular A.122 (6/27/80)
nefotiolion Bnd in anticipation of the 'lward
wh',,, t' such costs is necessary 10 comply with
:he proposed delivery schedule or period of
perform:lrlCe, Such cosls Rre allowalJlc only
lu ;he extent lhalthey would have been
~ilrl\\'alJle if incurred nfler the dRtr. of the
2Wcl'i1 and only with the wrilten approv;.! r.f
the .,n~..iIrdillg ngcn~r.
34, l'rn[css ional serl'icc costs.
a, Costs of profl'~sional and consultnnt
services renclereJ by persons who arc
r::f'''lben of R porticuliH profession or po~se5a
o sJl~cjal skilL anJ who arc not officers or
l'f'":i,ioyees of the organiziltion, arc a!lowable.
~ubject 10 U, c, and d. of Ihis puragraph when
r"dSrllOalJle in r~lotion,tu the servin,s
rendered and whe!\ not contingenl upon
rec:ovcry of the co~ts frum the. Government.
b, In del~rming the allowauility of r.osts in
. particular case. no single fuclor or any
special combination of faclors is necessarily
delermimllive, However. the followilOg
fm:lors are relevant:
11) The noture and scolle of the service
rellllered in relution to the service required.
(2) The necessity of conlrHcling for the
sen'ice. considering the organization's
c:1pahilily in the particulnr area.
(:~) The past paltern of such costs,
parlicularly in the years prior to Governmellt
awarels.
(4) The impact of Government aWards on
the organization's business (i.e" what new
prohlems have arisen).
(5) Whether the proportion of Government
work to the organization's totallJusiness is
su.:h as to inOuence the organization in favor
of incurring the cost. parliculariy where the
services rendered are not of a continuing
nature and have litlle relationship 10 work
ur;der Government grants and conlructs,
(6) Whether the service can be performed
more economically by direct employment
rulher than contracting.
(7) The qUulifications of the individual or
concern rendering the service and the
cuslom:!r~' fees charged. especially on non-
Government awards.
(0) Adequacy of the contractual agreement
for the scrvice (e,g" description of the service.
eslimate of time required. rate of
compensation. and termination pro\.i,ions).
C. In uddition to the lactors in paragroph b
above, retainer iees to the allowable must be
Sllflflorted by evidence of bona fide services
avoilnblc or rendered,
d, Cost of legal. accountin!" and consulting
~cf\'ices, and reluted cosl~ incurred in
conrl~ction with defense of antitrust suits;
and the prosecution of clai.:ns a~ainstthe
Gu\'ernmenl. are 11llilllowable, Cosl~ of legol.
ac:;ountillg nnd consubng services. and
relaled costs, incurred in conneclion ,,,'ith
pa lent il,[ringl.?menl Ii tiga lion. org:1niza tion
unel reorganization, are unallowable unless
otherwise prcwided fo;: in the award (but see
parngraph 47e],
35, Profits and losses on disposition of
depreciable property or other capital assets.
a. (1) Gains and losses on sale. retirement,
or other disposilion uf ciepreciable properly
shdl be included in the vear in which they
occur as cred:'~ or charges 10 cost groupi~g[s)
in which the depreciation applicable to such
property was included, The amount :! the
gain or loss 10 be inr.lueled as a credit ur
d"'r,~e to the appropriate cost grollping(s)
shull be the dilIercnce between the amount
rl'nlized on the property ond the
umJeprccialed basis of IlIe prOflerty.
(2) Gair.s and losses on the disflositiun of
def'reciablc property shall not be recognized
(l~ a separate credit or charge under the
foiluwing conditions,
(i1) The ~:.in or loss is processed Ihrough u
depreciation reserve acconnl and is r(;Oecleel
ill the Jcpreciation ullowaLle under
parugrapli 9.
(1)) The property is given in exchaoge as
pari of the purchase price of a similor ilem
ond Ihe gHin or loss is taken into account in
d,.,~crlTljllillg Ihe deprecialion cost basis of the
new item.
(cl A loss resulls from the failure \0
main tHin permissible insur:.nce. except as
olherwise pruvided in pnragraph 10.:..(3).
(e1) Compensalion for the use of the
property was providp.d through use
allowances in lieo of depreciolion in
occord,lnce with paragmph 9,
(e) Gains and losses arising from mass or
cxtraordin:.rv sales. relirements, or other
dispositions shall be considered on a case-
b\"cR~e basis,
'b. Gains or losses of any nalure arising
from the sale or exchange of property other
than the property covered in paragrnph a.
above shall be excluded in computing award-
costs.
35. Public informaliun sen'ice costs,
a. Public infarmalion service cosls include
the cost associated 'wilh pamphlets, news
releases, and other forms of information
services. Soch costs. are normally incurred to:
(1) Infurm or instruct individuals. groups. or
the general public.
(2) Interest individuals or groups in
pnrticipHting in a ser'lice program of the
Olgsnization.
(3) Disseminate the results of sponsored
and nonsponsored activities.
b. Public info:ma lion service costs are
allowable BS direct costs with the prior
a;:proval of th.. awarding agency, Such costs
aie unallowable as indirect costs.
3i. Publication and printing costs,
a. publication costs include the costs of
printing (including the proc('~<es 'of
composition. plate-making, press work.
binding, and the end products produced by
s!.lch processes), distribution, promotion.
mailin~, and general hanelling,
b, If these costs arc not identifiable with a
particular cosl objective. they should be
allocated as indirect costs to all benditing
acti\'itics of the organization,
c. Publication and printing costs are
unuiJowable as direct costs exceot with the
flriur :.pproval of the awarding agency.
d, The cost of page charges in journRls i~
addressed pRragraph 2B.
30, Rearrangement. and alteration casts,
Costs incurred for ordinary or normal
rp.arrangement Bnd alteration of facilities ore
alluwable. Special arrangement and
alteration costs incurred specifically for the
project are allowable with the prior approval
01 thp. awarding agency.
39, Reconversion costs, Costs incurred in
the restoration or rehabilitstion of the
organlution'B fadlitim; to approximately the
I
A-122:9
same condition existing immediately prior to
commencement of Governmenl awards. fair
wear and lear excepted, lire allowable.
40, Recroillng costs. The {ollowing
recruiting costs are allowable: cost of "help
wanted" advertising. operating costs of an
employment office, costs of operuting an
edocational testing program. travel expenses
including food and lodging of employees
while enEaged in recruiling personnel. tra vel
costs of applicants for ioterviews lor
prospective employment. and relor.alion costS
incurred incident to rp.cruilment of new
employees (see paragraflh 41C), Where the
organization uses employment agencies,
costs not in exccss of staodard commercial
rates for such services are allOWAble.
41. Relocation cosLs.
a. Relocation costs ore cost~ inciJenlto the
permanent change of duty assignment (for an
indefinite period or for a sloled period of not
less thon 12 months) of an exi~tii18 employee
or upon recruilmenl of a new employee.
Relocation costs ore allowoble, subject to the
limitation described In parogrnphs b. c. ond d.
below, provided thot:
(1) The move is for the benefit of the
employer.
(2) Reimbursement to the employee is in
occordance with on eSlablished written
policy consistently followed by the employer.
(3) The reimbursement does no! exceed the
employee's actual!or reasonably estimated)
expenses.
b. Aliowable relocation costs for current
employees are limited 10 the following:
(1) Tne costs of transportation of the
employee. members of his immediale family
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
to locale living quarters and temporary
lodging during the transition period. up to a
maximum period of 30 days. including
advance trip time.
(3) Closing costs. such 85 brokerage, legal"
and appraisal fees. incident to the disposition
of the employee's former home. These costs.
together with those described in (4) below,
are limited to B per cent of the"'sales price of
the emplo}'cc's former home. .
(4) The continuing costs of owoership of
the vacant former borne after the settlement
or lease date of the employee's new
permanent home. such as maintenance of
buildinEs and grounds (exclusive of fixing up
expenses). utilities, taxes, and property
insurance,
(5) Other necessary and reasooable
expenses normally incident 10 rcloca tion.
such as the cos ts of cancellins an unexpired
lease. disconnecting and reinstalling
household appliailces. aod purchasing
insuronce againslloss of or damages \0
personal properly. The cost of cancellins an
unexpired lease is limited to threa times the
monthly rental
c. Allowable relocatioo cosLs for new
employees are limited to those described io
(1) and (2) of paragraph b. above. When
relocation costs incurred iocidentto the
recruitment of new employees have been
allowed eitber ll.8 a direct or iRdirect cost and
the employee re6ign.s for reasons within his
..
I
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 share of the cost.
However. the cosls of travel to an overseas
location shall be considered travel costs in
accordance with paragraph 50 and not
relocation costs for the purpose of this
paragraph Ii dependents are not permilled at
the location for any reason and the costs do
not include costs of transporting household
goods.
d. The following costs related to relocation
are unallowable:
(1) fees and other costs associ<'.led with
acquiring a Ilew home,
(2) A loss on the sale of a former home.
(3) Co;]linuing mortgfllic principal and
interest payments on a home being sold.
(4) Income taxes paid by (in employee
related to reimbursed relocation costs.
42, Rental costs.
a. Subject to the limitations describen in
pilrag~aphs b. through d. of this paragraph.
rental cosls are allowable to the extent that
the rates are reasonable in light of such
factors os: renlal cosls of comparable
property. U any; market conditions in the
area; alternatives nvailable;and ihe type. life
expectancy. condition. and value of the
property leased.
h. Rer.tal costs under sale and leasebal:k
arrangements Rre allowable only up to the
amount that would be allowed had the
organization continued 10 own the property.
c. Rental cas Is under less-than-length
leases are allowable only up to the amount
that would be allowed had title to the
property vested in the organization. For this
purpose. a less-than-arms-!ength lease is one
under which one party to the lease agreement
is able to control or substar.tiallv influence
LlJe actions of the other. Such Jc~ses include.
but are not limited to those between (iJ
divisions of an organization; (iiJ organizations
under r:ommon control througb common
offi::ers, directors. or members: and (iii) an
organization and a director, trustee. officer.
or key p.mployee of the organi~a tion or his
immediate family either directly or through
corpora lions. trusts. or similar arrangements
in which they hold a controlling interest.
d. Rental costs under leases which creale a
materialequily in the leased prop~rly are
allowable only up to the amoun; that would
be a!lowed had the organizalion purchased
the property on the date the lease Bgreer::ent
was executed; e,g.. dep~eciation or use
allowances. maintenance. taxes. insurance
bul excluding interest expense and oUler
unallowahle costs. For this purpose. a
material equity in the property exists if lhe
lease in noncancelable or is cancelable on!v
upon the occurrence of some remote -
contingency and has one or more of the
following characteristics:
[l)The organization has the right to
purchase the property for a price which <lIthe
beg;nning of the lease appenrs to be
substantially less than the probable fair
market value at the time it is pennilted to
purchase the property (commonly called a
lease with a bargain purchase option);
. (2) Tille to the property past;es to the
organization at some time during or af:er the
lease period:
(3) The lenn of the lease (initial term plus
period, covered by bargain renewal oplions.
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.1ically usable by one or more users.
43 rtoyalties and other costs for use of
pOl .'.r and copyrights.
a. ) .yallies on a patent or copyright or
amortization of the cost of acquiring by
purchase a copyright. patent. or right8
there 10, necessary for the proper performance
of the award are allowable unless:
(1J The Go\'ernment has a Iicensc Dr the
right 10 free use of the potent or copyright.
(2) The pa tent or copyright hos been
adjudicated to be invalid. or has been
administratively determined to be invalid,
(3J The palent or copyright is considered to
be unenforceable.
(4) The palenl or copy~ighl is expired.
b. Special care should be exercised in
determining reasonableness where the
royallies may have been arrived at as a result
of less then arm's length bargaining: q;.:
(lJ Royallies paid to persons. including
corpora lions. affilin ted wi th the organi:a tian.
(2) Royalties paid 10 unaffiliated parties,
inCluding corpo!"ations. under an agreement
enlered into in contemplation that a
Government award would be made.
(3) Royalties paid under an agreemenl
entered into after an award is made to an
organizalion.
c.In any case involving a patent or
copyright formerly owned by the
organization, the amount of royalty allowed
should not exceed' the cost which would have
been allowed had the or~anization rctnined
title thereto.
4~. Severance po)'.
a, Severance pay. also commonly referred
to as dismissal wages. is a payment in
addition to re.~ular salaries and wages, uy
organizations to workers whose employment
is being terminated. Costs of severance pay
are allowable only to the extent that in ear;h
case. it is required b~: [i) law. (ii) employer-
e:n;Jleyee agreement. (iiiJ est:)blished policy
tha I con:;[itutes. in effect, an implied
agreement en the organization's part. or (iv)
circ::ms:a:lces of t::e particular employment.
b, Cests of severanr:e payments are ai\'idetl
into two catel!o~ies as follows:
(1) Actual nonna: trunover EeVera:1ce
payments sh~ll ue allocated to all activities;
o~. where the organizo tion prnvides for a
rC"erve for normal severances such method
will be acceptable if the charge to current
operali9ns is reasonal:,le in lisht of payments
aClua)!)' made for normal sevp.rances over a
representative past period, and if amellr.;,
chur,,?d are allocated to all activilies of the
orga:Ji1.alian.
12) Abnormal or mass severance p~y is of
such a conjectural nature that mensuremenl
of costs by means of an accrual will net
achieve eq;Jity to bolh parties. Thus. accruals
for this pl:'pose are not aliowable. However.
the Government recogni7.c~i~6 obligation to
participa!e to Ihe extent of its fair share. in
nny specific payment. Thus. allowability will
be considered on a case-bv-case basis in the
event of occurrence. -
45. Specioli.~ed ser.'ice facilities,
a, The costs of services provided by r.;;,hi~'
A-122:10
complex or 'pecialized facilities ope~alcd by
the organization. such as electronic
compulers and wind tunnela, are allowable
pro\'ided the charges for the services meet
the conditions of either b. or c, of this
paragraph and. in addition. take into accounl
any items of income or Federal financing Ihat
qualify as applicable credits untler paragraph
A,5. of Attachment A.
b. The costs of such services. when
material. must be charged directly to
applicahle uwartls based on actual usage of
Ihe services on the basis of a schedule of
rates or established methodology that (i) does
not discriminate against federally supported
acti\'ities of the organization. including usage
by the organization for internal purposes, and
(ii) is designed 10 reco\'er only the aggregate
co,ts of.fhe services. The costs of each
service sh,lIl consist normally of both its
direct costs fInd its allocable share of all
indirecl costs, Advanr.e agreements pursuant
10 parugraph A.G. of A ltHchment A are
particularly important in this situation,
c. ,^'here the costs incurred for a service
Are not material. the)' may be allocated as
Indirect cas IS.
1G. Taxes.
a. In general. taxes which the organi1.3tion
:s rcquired to pay and whdl are p,dd or
ocr:rued in accord;;nce with generally
accepted accounting principles. and
payments mode to local governments in lieu
ollaxes which are commensurate W;l.h the
local government services received aTe
allowable. except for (i) taxes from whi:;h
exemptions are a\'ailable to the organization
uirec,i\' or which are a\'ail"ble to Ihe
organi~ation based on an exemption affr:rded
the Government and in the laller case when
the awarding agency make~ a\'ai:able the
n~ce~sary exemption cerlifica ICE. (ii) special
as~essmenl~ on land which represent capital
i:nprovements. and (iiiJ Federal income taxes.
b, Any refund olt~y.es, and any p~yment \0
the organization of interest thereon, which
were allowed as award costs, w!ll be
cretlited either as a cosl retluction or cash
refund. as appropriate, to the Government.
47, Terminotion costs, Terminali6n of
n wurtls generally gi\'c rise 10 the iricur~"i'l:C:
of cas Is. or the neerllor specii'll treatment of
costs. which would nol have arisen had the
aW3rd not been terminaled. Cost prinr.iples
c0vering these items ore set forth belew,
They ore to be uscd in conjunclion with the
'olher provisio:1s of this Circul;u i!1
termination situations.
a, Common items. The co,l of itenlS
rcasona~ly usable on the organization's olher
work shall not be allowable unless the
orgnr.izalio!l submits evideoce thai il would
nol re~ain such items al cost withou;
sustaining a loss. In dedding whether such
i! ems a~e reasona bly us:! ble on other work of
the organization. the awartlil:g agency should
consiuer the organi:>.ation's plans and orders
lor currenl and scbeduled acti\'!l\',
Contemporaneous purchases of ~ommon
ilems by the organization sh,,1I bc regarded
as evidence lhal such items are re~sonabl\'
,,,able on the organization's other work, Any
nr.ceplnnce of common ilems as allocable to
the te~minaled portion of the aware shall be
limited 10 the extr:nlthatthr: rplf;ntiti,'" of
.
I
Office of Management and Budget Circular A-122 (6/27/80)
such items on hand. in transit. and on order
are in excess of the reasonable quantitative
requiremenu of other work.
b. CasLs continw'ng after termination. U in
a particular case. despite all reasonable
efforts by the organiz.ation. certain costs
cannot be discontinued immediately alter the
effective date of termination. such cosu are
genenJly allowable within the limitations set
forth in this CirculIlI. except that any such
costs continuing slter termination due 10 the
negligent or willful failW"1l of the organization
to discontinue such costs shall be
unallowable. . .
c. Loss of L'seful value. La!! of useful value
of special tooling. mac::binery and equipment
w~',-h wes not charged to tbe award as 01
c..:l;,..al ~xpenditure is generally allowable iI:
i: ; Such special tooling, ma~inery, or
eq, :,1ment is not reaBonably capable of use in
lb'. "ther work of the organiz.ation.
p The interest of ilie Govemme:lt is
;J:T ~r.lr.d by transfer of title or I.y other
n1<':1:"I5 deemed appropriate by the awarding
a'~' ncy:
"Ii. Rental cosLs. Rental costs under
u:"l:xpired leases are generally allowable
\'. :'l!re clean'\' shown to have been
n'.,~onably ;ecessary for the performance of
I!,;: terminated award less the residual value
0: such leases. if (i) the amou:,t of BUch rental
ci;,imp.d does not exceed the reaBonable use
vabe of the property le~sed for the period of
th~ ~w:Jrd and such further period as may be
r~.,.;l)l:.:ble. and (ii) the organization makes
all reasonable efforts to terminate. assign.
sellle. or otherwise reduce the cost o! such
lease. There also mav be included the cost of
alterations of such le'ased property, provided
such al:erations were necessan' for the
performance of the award. and'of reasonable
restor:; tion required by the provisions of the
lea~e.
e. Set/lement expenSBS. Settlement
expenses including the following al?
gem'rally allowable:
(1) Accounting. legaL clcrical. and similar
costs reasonably neCi:ssary for.
(a) The pnpal"ation and presenta tion to
awarding agency of settlement claims and
supporting data with respect to the
terminated portion of the award. tmless the
lerminalior. is for defaulL (See parllgTaph -'I.a
of Attachment L OMB Circular No. A-no;
and
[b) The termination and settlement of
subawards.
(2) Reasonable costs for the storage.
lranspoT1atior_ protection. and disposition of
property provided by the Government or
acquired or produced for the sware.: except
.....hen p-antees are n:imbu.~ed lor disposaL.
al a predetermined amolillt in accordana:
with Altachment N of OMB Ci.--cular A-DO.
(3) indirect costs relaled to "danes and
wages in~d as seltlernent expensC1l in
subparagraphs (1) snd (2) of thu paragraph.
Normally. such indirect cosu shall be limited
to fringe benefiu. occupancy cosL and
immediate supervision.
l. Claims under subowara'.s. Claims under
suba wards. including the alloca hie portion of
claims which are common 10 the award. and
to other work of the oTllani::.aUor. are
generally allowable. An appropriate share of
tha organization's indirect expense may be
allocated to the amount of settlements with
subcontractor/subgrantees; provided that the
amount allocated is otherwise cvnsistent
with the basic guidelines conlained in
Attachment A. The indirect expense so
allocaled shall exclude tha samB and similar
cosls claimed directly or indirectly as
seltlement expenses.
48. Training and education coaLs.
a. Cosu of preparation and maintenance oC
a program of instruction including but nol
limiled 10 on. the-job. classroolIl. and
apprenticeship training. designed 10 increase
the vocational efiectivene51 ol emplllyec~
including training materials. textboob.
salaries or wages of trainees (e.xcluding
overtime compensation which might arise
therefrom). and (i) salaries of the director of
training and stall when the training program
is conducted by the organiz.a tioo: or (ii)
tuition and fees when the training is in an
institution not operated by the organi:z.alion.
are allowable.
b. Costs of part-time education. al an
undergraduate or postgraduate college leveL
including that provided at the organization's
own facllities. are allowabla only when the
course or degree pursued is relative 10 the
field in which the employee is now working
or may reasonably be expected 10 work. and
are limited to:
(1) Training materials.
(2) Textboolul.
'(3) Fees chargell by the ttdncatilln..l
institution.
(4) Tuition charged by the educational
inatitution. or in lieu of tuition. instructors'
salaries and the related share of indirect
costs of the educational institution to the
extent that the SUI:: thereofis not in exce56 of
the tuition which would have ben paid to the
participa ting educa lional institution.
(5J Salaries and relsted costs of instru.ctors
who are employees of tha o~tioa..
(6J Straight-time compensation of ~ach
employee for time spent Olttendi.ns class&<<
during wcrr.mg hours Dot in excess of 156
hours per year and oniv to the extent that
c'.rcumstan= do not permit the operation of
classes or attendance a t classes after repllar
working hours: otherwise such compew;ation
is unaliowable.
c. C"sts of tuition. fees. traini:Jg materials.
and textbooiu; (but not subsistence. s..lary. or
any other emoluments) in connection with
full-time educatior~ including that provided at
the organization's own facilities. at a
postgraduate (but not underp-ao\:ate) college
leveL are allcwable onl\' wheo the course or
degree pursued is relale'd to the field in which
the empiDyee is now working or mBY
reasocably be expected to work. and only
where the costs receive the prior approval of
the awarding agency. Such coets are limiled
to the costs attributable to a total period not
to exceed one SdlOOi year for each employee
so trainecL in unusu..l. cases the period mB y
be extended.
d. Costs of a tlendance of up 10 16 week."
per employee per year at specialized
program. specifically designed to enhance
:he effectiveness of executives or ma=ger3
or to prepare employees for sucb positions
are aliowabie. Such costs include enrollment
I
A-122:11
fees. training materials, textbooks and
related charges. employee!' salarie~
subsistence, and traveL Casu allowable
under this paragraph do not include tho~ for
courses that are part of a degree-<>rienled
cunicwwn. which are allowable only to the
extent sel forth in b. and c. above.
e. Maintenance expellSe. and nonnal
depreciation or fair rental on facilities
owned or leased by the organization for
training PWl'oses an: allowable to the extent
set forlh in paragraphs g, 22. and 42-
f. C:lOtributions or donations to
educational or training in~tltutions. including
tl:e donation of facilities or other prope.rties.
a nJ Bcholanhips or fellowships, are
unallowable.
g. Training and education costs in excess of
those otherwise allowable under paragraphs
"b, and c. of this paragraph may be allowed
\O.'ilh prior approval of'the awarding agency.
To be considered for approval. the
organization must demonstrate that such
costs are consistently incurred pursuant to an
eSI;]blished training Ilnd education progrnm.
and that the course or degree pursued is
relative to the ueld in which the employee is
now working or may reasonebly be expected
to work.
49. Transportation cost.s. Transportation
Celsts include freighL express. cartage. and
poslage charges relating either to goods
p\lrchased. in process. or delivered. These'
costs are allowable. When such cosl! can
readily be identified with the itelIUl involved.
they tIlay be directly charged as
transportation cosu or added to the cost of
such itelllS (see p8.I1lgrnph 23). Where
identification with the materials received
cannot resdlly be made. tranJlportation cost!
may be charged 10 the appropriate indirect
cost accounts if the organiz.ation foHows a
consistenL equitable procedure in this
re~pe~t
50. Travel cosLs.
a. Tra vel costs are the expenses for
IrClI\sportation. lodging. subtlistence, and
related items incurred by employees who are
in ua vel status on official business of the
organization. Travel costs are alloweble
subject to paragrnpns b. througb e. below.
wh~n they are directly attributable to specific
work under an award or.are iricu.'Ted in the
normal course of adminis Ira non of ths
organization.
b. Such costs may be charged on an actual
b..sis. on a per diem or mileage basis in lieu
of actual costs incu......ed. or on a combina lion
of the tWo. proTided the method used results
in chaTBes consistent with those normally
allowed by the organiz.ation in its regular
opera tions.
c. The d.iIference in cost between first-class
air acco=ociations and less than fuoH:la55
air accommodatiOn! is unallowsble except
when less than fint-class air
ac::oa'JIlodatio!l5 lL"'e not reasona bly
available to meet necessary mission
requirements. such as where less than first.
class accom:nodations would (i) require
circuitous routing. (il) requL-e c-avel during
unreasonable houn, [iii) ~6 ti)' increase the
dwation of the night. (Iv) result in additional
costs ,':hich would offset the transDortaUon
savings. or Iv) offer nccommodntio'ns which
"
.
1_-
Office of Management 'and Budget Circular A-122 (6/27/80)
are not reuonably adaqU8le k>r the medical
1~ds oC the traveler.
d: Necessary and reawnabttl costs of
family movements and penonnel movements
af a special or mass na ture are allowable.
pursuant to paragrapns 40 and 41. subject to
allocation on the basis of work or time period
'aer:efiled when appropriate. Advance
agreements are particularl)' impo~anl
e. Direct charges for foreign travel costs are
allowable only when the travel has rei:tlived
prior approval of the awarding a.geney. Each
separate foreign trip must be approved. For
purposes of this provision. foreign travel is
defined as any travel oUUlide of Canada and
t~e United States and ils territories and
possessions. However. for an organiza tion
located in foreign countries. the lenn "foreign
travel" means travel outside that country.
[Circu1nr,No. A-l22J
Attachment C
Nonprofit OrganizatioDJI nol Subjed to this
c'rc;ular
Aerospace Corporation. EI Segundo.
California
Areonne Universities Association. Chicago.
Illinois
Associated Universities. lncorporated.
Washington. D.C.
Assooated Universities for Research and
Astronomy. Tucson. Arizona
Atomic Casualty Commission. Washinf:ton.
D.C.
Ba ilelle Memoriallns titute. Headqulirtered in
Columbus. Ohio
Brook.'Javen National Laboratory. Uptor.
New York
Center ior Energy and Environmental
Reseerch (CEER). (University of Puerto
Rico)
Commonwealth of Puerto Rico. Charles Sta;k
Draper Laboratory. lncorporated
Cambridge. Massachusetts. Comparative
Animal Research Laboratory (CARL)
rJni\"e!"Sily of Tennessee). Oakridge.
Tennr.:lsee
Ln\"ironmentallnstitute of Michigan. Ann
Arbor, Michigan
Har.ford Environ.mental Health Foundation.
Richland. Wash~on
liT Research Institute. Chicago. illinois
Imtilute for Defense Analysis. Arlington.
Virginia
Institute of Gas Technology. Chicago. IllinDis
Midwest Research lnstir.Jle. Heacauanered
in Kunsas City. Missouri .
Mitre Co~poration. Bedford. Massachusetts
Monto:!a Energy Research and Development
Institute. Inc~ (MERDI), Butte. Montana
~a lional Radiological AstronolDY
Observatory. Green Bank. West Virginia
Oakridge Associated Universities. Oak..i~.
Te:messee -
hoject Management Corporation. Oak:idge.
Tennessee
Rand Corporation. Santa Monica. California
Research Triangle L.'1stitute. Researc.h
Triangle Park. North Carolina
Riverside Research Institute. New York New
York
&endia Corporation. Albuquerque. New
\~t'>Y;""'n
Southern Rssean:h Institute. Blrml.ngham.
Alabama
Southwest Resean:h Institute. San Antoo1o.
Texas
SRI lntemational Menlo Park. CaillornJa
SyraCUlle Rasean:h Corporation. SyraCla8.
New Yorlc
Universities Research A88ociatJon.
Incorporated [National Acceleration Lab).
Argonne. Dlinois
Universities Corporetion for Atmospheric
Research. Boulder. Colorado
Nonprofillnsurance Companies such as Blue
Cross and Blue Shield Organizatlons
Other nonprofit organizations as negotiated
'Nith awarding agencies.
(FR Doc. 110-= F1lrd 1-7-JlQ; a:.s ami
~ CODE JlllHll~
Editorial Corrections to
OMS A-122
OFFICE OF MANAGEMENT AND
BUDGET
Circular A-122, "Cost Principles IOf
Nonprofit Organizations"; Correction
AGENCY: Office of Management and
Budget.
ACTION: Final policy correction.
SUMMARY: This notice corrects errors in
the printing of cost principles for
nonprofit organizations. 145 FR 46022,
Juiy 8, 1980).
FOR FURTHER INFORMATIOt-I COtfTACT:
Palmer Marcantonio. Financial
Management Branch. Office or
Management and Budget. Washington.
D.C. 20503. (202) 395-4773,
. Page 46022, column 2 the second
Paragraph 1. change Paragraph 5
"Compensa tion for Personnel Services"
to Paragraph 6,
. Paee 46022, column 2 the second
Poragr~ph 2, change Paragraph 6
"Contingencies" to Paragraph i.
. PagF 46022. column 3:
Paragraph 4, change Paragraph 31,
"Equipment and Other Capital
Expenditures" to Paragraph 13,
. Paragraph 5, change Paragraph 26
"Meetings" to Paragraph 24.
. Paragraph 8, change Paragraph 27.
"Organiz.ation Costs" to Paragraph 26.
. Paragraph 7. change Paragraph 30
"Page cha:-ges in Professtional Journals"
to Paragraph 28.
. Paragraph 8, change paragraph 37
"Public Information Service Costs" to
Paragraph 36.
. Paragraph 9, change Paragraph 43
"Rental Costs" to Paragraph 42.
. Paragraph 9a: in the fourth line. add
"up" between the words "only" and
"10"; in the sixth line change "they" to
"it".
. Paragraph 10, change Parugraph 51
"T-~'"p] Cnc:'c:;;" !n r;1rnCi~r11l ~(l
-- _I -.---
A-122:12
. Page 40024, column 3 Paragraph
4(1\)(2) after "uencfits received" add ";
or".
. Page 4{,o25. column 1 Paragraph 83.
change the reference "ParagrapJl 21 of
Attachment B" to "Paragraph 19 of
Attachment B."
. Page 46026. column 1 Paragraph
4a.iii. in the sixth line. change "direct
cosl" to "direct cas Is."
. Page 46026. column 2 Paragraph
Ele, change "e'stablishmenl of a rale" to
"establishment of a final rale."
. Page 46026, column 3 Paragraph
E2b, in the thirtlline add the following
after "a Federal agency shaU"-"submil
its initial indirect cost proposal
immediately,"
. Poge 4W2?, column 3 Paragraph
(3)(0). change "workmen's
compensation" to "worken'
compensation,"
. Page 46028, column 1 Paragraph
6f3(b), (the second line of column 1)
chunge "Workmen's compenS<ltion" to
"workers' compensation."
. Page 4(){J30, .column 3. paragraph
24b" the sixth line. change "allowable"
to "allowability".
Daniel F. MOOD,
Dudgel and Management Officer,
Irn Doc, ln~J Flied 3-1tHl1: 8.'4~ om)
BILLING WOE Jl1lHll-M
Circular A-122, "Cost Principles lor
Nonprofit Organizations"
Correction
In FR Doc. 81-20270. appearing at
page 46022 in the issue of Tuesday. July
13, 19(1(). the following changes should be
made:
1. On page 46024. column three, tbe
second sentence in paragraph 'A.5.b.
should read. "Specifically. the concept
of netting such credit items against:
related expenditures should be applied
by the organization in detenninins the
ra tes 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 part, by Federal funds,"
2, On page 46024, column three, the
second complete sentence in paragraph
/\.5. should read, "This is particularly
true in connection ",'ith organizations
tha t receive a preponderance of their
support from Federal agencies,"
3. On page 46025, column one.
paragraph B.2, should read. "2. Any
dircct cost of a minor amount may be
trca ted as an indirect cost for reasons or
practicality where the accounting
trcatment for such cost is consistently
1l[1[1Jil'd 10 nIl final r:o~t ohi('r:tivp.~."
,.
",1
,
I
,
Office of Management and Budget Circular A-122 (6/27/80)
A-122:13
4. On page 46025. column ODe.
paragraph B.4.f. should read. "f.
Administration of group benefits on
behalf of members or clients including
life and hospital insurance. annuity or
retiremenl plans. financial aid. etc."
5. On page 46025. column two. the fir~t
sentence in paragraph D.l.e. should
read. "The base period for the allocation
of indirect costs is the period in which
such costs are incurred and aCC\lmuleted
for allocation to work performed in that
period."
0, On page 40026. column one. the
second sentence in paragrnph D.3.d
should reod. "The costs in the common
pool shall then be distributed to
indi\'idual awards included in thot
func~!on by use of a single indirecl cost
rale.
7. On page 46020. column one. the first
senlence in puragraph 0.3.e. should
read. "The distribution based used in
computing lhe indirect cost rate for each
function may be lotal direcl costs
(excluding capitlil expenditures and
other distorting items such as major
subcontracts and subgrants). direct
::alaries and wages. or other base which
results in an equitable d'islribution."
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 organiza lions'
generally separate their costs into thrp.e
basic ca tellories:' . .."
9. On page 46026. the last sentence in
column one (extending to column two).
in paragraph 0.5. should read. "The
factors may include the physical
loca tion of the work. the level of
administra tive support required. thll
na ture of the facilities or other resourCllS
employed. the scientific disciplines or
technical skills im'olved. the
organizational arrangements used. or
any combination thereor."
10. On page 46026. column three.
paragraph E.2.i. should read. "i. To the
extent that problems are encountered
among the Federal agencies in
connection with the negotiation and
approval process. the Office of
Management and Budget will lend
assistance as required to resolve such
problems in a timely manner."
11. On page 46030. cdJumn one. the
introductory text of paragraph 16.b. and
paragraph 16.b.(1) should read. "b. The
costs of idle facilities ore unallowable
except to the exlentthat: (1) They are
necessary to meet Ductua lions in
workloilds: or".
12. On page 46030. column one. the
second sentence in paragraph 16.c.
should read. "Such costs are allowable.
provided the cilpacily is reasonably
antir:ipaled to be necessary or WIIS
originally reasonable and is nol subject
to reduction or elimination by sublelling.
renting. or sale. in accordance with
sound business. economics or security
praclices,"
13. On poge 46031, second column.
paragraph 34,c. should read. "In addition
to the factors in paragraph b. above.
retainer fees to be allowable musl be
supported by evidence of bona fide
services available or rendered,"
~llUNO cODE lSOS-01-f>1
"