AGREEMENT FUNDED UNDER THE CLEARWATER COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM (5)
.l_
I
I
AGREEMENT FUNDED UNDER
THE CLEARWATER COMMDNITY DEVELOPMENT
BLOCK GRANT PROGRAM
THIS AGREEMENT is entered into as of the 1st day of October. 1988, by the
CITY OF CLEARWATER. Florida, a political subdivision of the State of Florida,
hereinafter referred to as the .CITY., and ERVIN'S ALL AMERICAN YOUTH CLUB. INC..
as further identified in Appendix A. hereinafter referred to as the .PSA", and
included the Appendices attached hereto.
WHEREAS, the City has agreed with the United States Department of Housing
and Urban Development to conduct a Community Development Program, hereinafter
referred to as the .Program". with federal financial assistance under Title I
of the Housing and Community Development Act of 1974, as amended. hereinafter
called the "Act., and
WHEREAS. the City of Clearwater Planning & Development Department.
hereinafter called the "Department", will act in behalf of the City in conducting
the Program, and
WHEREAS, the PSA provides a program as identified in Appendix A of benefit
to low and moderate income residents within the City of Clearwater and proposes
to perform the work and carry out the specific services as identified in Appendix
A hereinafter referred to as the .Project., and desires federal financial
assistance through the City to effect this proposal, and
WHEREAS. the City finds the project to be meritorious and in fulfillment
of the purposes of the Act;
THEREFORE. the parties agree as follows:
1. The PSA shall. in a satisfactory and proper manner as determined by
the Department, conduct the Project outlined in Appendix A.
2. The term of this agreement shall commence on October 1. 1989, and
terminate on September 30, 1990, unless earlier cancelled as provided herein.
The agreement may be extended for up to one additional year upon the request of
the PSA and the written authorization of the City Community Development Manager.
The need and merit shall be at the determination of.the Manager. The Department
may issue written or oral instructions to clarify any other details or provisions
of this Agreement. Such instruction must be within the intent of the project
and not be of such nature to affect cost or period of performance.
3. The City representative with the PSA as regards conduct of services
under this contract shall be the Community Development Manager and the PSA's
services shall be carried out under the supervision of the Agent as identified
in Appendix A.
4. The PSA shall not exceed its budgeted amount and shall use the funds
in accordance with the award to be paid with Community Development Funds included
in Appendix B. Funds shall not be obligated when payment has been suspended or
terminated pursuant to paragraph 19 hereof. Any funds which the Department
determines were not properly expended shall be refunded to the City.
5. The PSA shall comply with the provisions of OMB Circular A-110.
provided in Appendix G, and with the provisions of OMB Circular 122. provided
in Appendix H, or the appropriate successor documents of these documents. The
PSA 10/1/89
Rev. 10/6/89
1
..,
(d
t
f
I
I
~
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 confonmity with the Procurement Standards set forth in OMB Circular A-110.
Attachment O. Accountability for project property and equipment shall be in
accordance with the requirements therein set forth.
8. The City agrees to make payment of budgeted costs on a reimbursement
basis. Requests for payment shall be as specified in Attachment B. No advance
payments shall be made to the PSA. All costs and invoices for request for
payment shall be supported by properly executed payrolls, time records. invoices.
contracts, or vouchers, or other official documentation evidencing in proper
detail the nature and propriety of the charges. All checks payrolls, invoices.
contracts, vouchers, orders or other accounting documents pertaining in whole
or in part to the agreement shall by clearly identified and readily accessible.
Final request for reimbursement hereunder shall be submitted within 30 days after
completion of all services to be perfonned by the PSA and the City shall not be
responsible for payment of any charges, claims or demands hereunder not received
within said thirty day period.
9. The PSA shall upon the expiration of this agreement transfer to the
city any CDBG funds on hand and any accounts receivable attributable to the use
of CDBG funds. Program income funds are excluded from this provision or and are
provided below.
Program income funds shall be retained by the PSA so long as the activities
that will be undertaken with the program income are the specific activities that
meet the provisions of this agreement. These funds shall be adjusted by the City
according to the principles described in paragraphs (b)(2)(i) and (ii) of Section
570.504 which states that:
(1) Program income in the fonn of repayments to. or interest earned on
a revolving fund as defined in Section 570.500(b) shall be substantially
disbursed from the fund before additional cash withdrawals are made from the
U.S. Treasury for the same activity.
(2) Substantially all other program income shall be disbursed for eligible
activities before additional cash withdrawals are made from the U.S. Treasury.
10. The City shall retain custody upon termination this agreement of any
and all property purchased with Community Development Funds. "Property" as used
in this Paragraph shall mean nonexpendable tangible property valued at $200 or
more with a remaining life expectancy of one year or more. The PSA shall retain
custody of property acquired with federal funds so long as the property is used
for the purposes described in Appendix A. When no longer used for such purpose,
the City shall assume custody of the property upon written notice to the PSA.
Upon purchase and receipt of property, the PSA shall submit to the Department
a Property Receiving Report. Stolen, lost or returned property shall be reported
PSA 10/1/89
Rev. 10/6/89
2
,.t 1
I
I
.../
~~~ immediately upon termination of this agreement, the PSA shall submit in a
Property Report a physical inventory of all property purchased with Community
Development Funds. The report shall also contain a verification of the existence
and current used and location of the property, and, if applicable, the continued
need for the property. No real or personal property or custody thereof purchased
with such funds shall be disposed of, transferred, assigned, or loaned by the
PSA without prior written consent of the City.
11. For any real property under the PSA's control that was acquired or
improved in whole or in part with CDBG funds in excess of $25,000 must;
(1) Be used to meet one of the national objectives in Section 570.901
until five years after expiration of the agreement, or for such longer period
of time as determined to be appropriate by the City; or
(2) . Disposed of in a manner that results in the recipient's being
reimbursed in the amount of the current fair market value of the property less
any portion of the valued attributable to expenditures of non-CDBG funds for
acquisition of, or improvement to, the property. (Reimbursement is not required
after the period of time specified in paragraph (b)(8)(i) of Section 570.503..Q
12. Nothing in this agreement shall be construed to permit invasion of
the privacy of individuals who are served by the project, nor shall this
agreement be construed to require the PSA to publish or release information to
third parties which would invade the privacy of such individuals. Information
obtained by the Department as required by this agreement shall not be used or
disclosed in such a way as to invade individual privacy and client relationships,
unless Florida law pertaining to public records requires disclosure of said
information.
13. The PSA shall obtain prior written approval by addendum to this
agreement for any of the following changes:
a. Substantial changes in the project work plan.
b. Changes in any budget line item.
14. The PSA agrees to fully participate in the implementation and
maintenance of an evaluation system to continually monitor the project. This
shall include, but not be limited to. quarterly (or more frequent) reports on
progress toward the goals listed in Appendix A, periodic submission of data
reports which will be used by the Department for inclusion in the Annual Grantee
Performance Report. periodic monitoring visits by the Department for conformance
with this agreement, and continuing assessments of performance hereunder. PSA
agrees to comply with evaluation and information requirements of the Department.
A final report shall be submitted by the PSA within 30 days after the end of the
contract term. This final report shall consolidate reporting of all project
participants.
15. PSA shall establish and maintain on an accrual basis an accounting
system in accordance with the Standards of Grantee Financial Management System
as set forth in OMB Circular A-110 or the appropriate successor document and in
accordance with generally accepted accounting principals and standards where
these principals and standards are not in conflict with A-110 or its successor.
PSA agrees to modify or correct said systems in accordance with he City's
requirements.
PSA 10/1/89
3
.,.;.
-,
I
I
16. PSA shall maintain such records and accounts as are deemed necessary by
the city to assure a proper accounting for all project funds. All such records shall
be available for audit, inspection or copying purposes at any time during normal
business hours and as often as the City. HUn, and/or representatives of the
Comptroller General of the United States. or other federal agency. may deem
reasonably necessary. Such records shall be retained for such period as required
by applicable laws and regulations and may thereafter be destroyed only with the
prior written approval of the City. Such records shall include financial records,
audits. supporting documents, statistical reports and client files. PSAwill comply
with such additional requirements as to maintenance of records as the City may
request in writing. In the event the PSA cannot continue to be responsible for
maintenance of the records. then the City shall be so notified in order to take
custody of the records. The city may, at any time, on written notice to the PSA take
custody of any and all records established under this Agreement.
17. The PSA shall hold and save the City, its officers. agents, and employees
harmless from liability of any nature or kind, including costs and expenses. for or
on account of any suits or damages of any character whatsoever resulting from
injuries or damages sustained by any persons or property resulting in whole or in
part from the negligent performance or omission of any employee, agent or
representative of the PSA.
18. The PSA shall not assign any interest in this Agreement without the prior
written consent of the City.
19. The City may suspend, withhold. or terminate payment of the project, in
whole or in part. for cause or convenience. Cause shall included the following:
a. Use of funds that does not follow project guidelines.
b. Failure to comply with any te~ or condition hereunder.
c. Refusal to accept conditions imposed by HUn.
d. Refusal to accept conditions imposed by the City.
e. Submittal of reports which are incorrect or incomplete in any material
respect.
f. If carrying out this Agreement is rendered impossible or
infeasible for any reason including changes in law or the
unavailability of HUn funds necessary for continuation.
g. Convenience shall be according to the regulations in 24 CFR 85.43 and
85.44.
If the City suspends payment. it shall advise the PSA and specify in writing the
actions that must be taken as a condition precedent to the resumption of payment and
specify a reasonable date for compliance.
20. Both parties will use their best efforts to ensure that services under
this Agreement are provided so as to best meet the needs of residents with priority
to those residents who reside in the Community Development target areas. The PSA
shall make every effort to assure that a minimum of two-thirds of those persons
receiving services hereunder are low and moderate income.
21. No person with responsibilities in the operation of the project will
discriminate with respect to any project participant because of race. color,
national origin, or sex. Nor shall any participant be excluded from participation
in, be denied of, or be subjected to discrimination under any program of activity
funded in whole or in part with Community Development Funds because of race. color,
PSA 10/1/89
Rev. 10/6/89
4
f
f
;.
tfational origin, or sex. Nor shall any participant be excluded from
participation in, be denied of, or be subjected to discrimination under any
program of activity funded in whole or in part with Community Development Funds
because of race. color, national origin or sex, as set forth in Other Program
I
I
Requirements in Appendix D. (CFR 570.601).
22. No resources provided through this Agreement shall be used to have
the primary effect of advancing religion, nor shall any goods or services
provided through this Agreement be provided in a pervasively sectarian manner,
as required by the First Amendment of the Constitution of the United States.
All activity under this Agreement shall be consistent with specific conditions
for religious organizations as established by the United States Department of
Housing and Urban Development.
23. The PSA will establish safeguards to prohibit employees from using
their positions for a purpose that is or gives the appearance of being motivated
by a desire for private gain for themselves or others, particularly those with
whom they have family, business or other identifiable ties. Prior to requesting
any continued project funding beyond the term covered by this Agreement or for
a new public services not covered by this Agreement, the PSA shall attempt to
secure other local, state or federal funding and/or private funding for such
project. The PSA will not as a result of receiving funding for the Project
reduce its support for other similar services already being provided by the PSA
in the area of its operation, and will, in fact, affirmatively seek additional
assistance and support from other sources for increasing services where needs
demand such increase. The PSA will not use these funds for publicity or
propaganda purposes designed to support or defeat legislation pending before
federal. state or local governments.
24. The PSA shall comply with the requirements of Section 3 of the
Housing and Urban Development Act of 1968, as amended, and the HUD regulations
issued pursuant thereto, attached hereto as Appendix E.
25. The PSA will comply with Equal Employment Opportunities Executive
Order 11246, as amended. attached hereto as Appendix F.
26. The PSA will comply with applicable federal law and regulations,
including but not limited to:
National Environmental Policy Act of 1969;
Flood Disaster Protection Act of 1973;
HUD Implementation of the Lead-Based Paint Poisoning Prevention Act;
Clean Air Act;
Historic Preservation Requirements of P.L. 89~656
Archeological and Historic Preservation Act of 1974;
Executive Order 11593;
Architectural Barriers Act of 1968;
Hatch Act;
Federal Water Pollution Control Act;
Federal Labor Standards provisions and the Davis-Bacon Act;
The Civil Rights Act of 1964;
National Flood Insurance Program;
PSA 10/1/89
5
~
t
r
)
;,
I
I
, ~ll 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/~~
ATTEST:
~~
Rita Garvey
Mayor-Commissioner
c:~ Oi[A;;6L-
Ron H. Rabun
City Manager
ATTEST:
Approved as to form & correctness:
('r~ ~~,o~.Q...
_. . G.'l7nai:...e.'-. ...Gcuideau -. ;--
. "J _,_ _ _ ___
--= :City-1tlerk ':.- .
~ -',~ .....- ~~'-.~
/-
PSA 10/1/89
6
Ii I
Agency: Ervin's Youth Club
Year: 1989 - 1990
APPENDIX A
Identification of A2encv and Snecific 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. FL 34617
Agent:
Ervin A. Harris. Executive Director
813-443-2061
PROGRAM OF AGENCY
Ervin' s Youth Club primarily serves minority
neighborhood and provides self-development
athletics, tutoring, motivational counseling,
Parental involvement is encouraged.
youths in the North Greenwood
and self-awareness training,
and related youth activities.
SPECIFIC SERVICES TO BE PROVIDED UNDER THIS AGREEMENT
I. Facility Expansion
The existing facility at 1250 Holt Avenue will be expanded by an
approximately 20 ft. x 50 ft. addition and will include two new shower rooms
and other improvements to the facility. Heating and air conditioning are
not included, but may be included if there are remaining funds after the
expansion is exterior-and-interior-finished. Project will be completed in
cooperation with the Clearwater Parks and Recreation Department.
II. Operating Support
Ervin's All American Youth Club will continue general operation of the youth
activities as noted above and will continue to improve administration of
the program including on time, accurate reporting and responsiveness to
standard institutional data requests. There will be at least 500 actual
"sign-in's" each month, where a "sign_in" is a child/youth signed in no more
than once in a day. There will be at least 3 different programs. such as
tutoring, motivational classes. organized sports. open recreation, or
counseling, during each month. Monthly reports will be provided.
I
I,
(can't)
APPENDIX A
AGENCY: ERVIN'S YOUTH CLUB
SCHEDULE
I. Facility Expansion
Facility expansion will be completed as specified in the paragraph numbered
on page 1 of this Agreement.
II. Operating Support
A. This is an on going program and the SPECIFIC SERVICES as noted above will
be provided for each and every month of the agreement.
B. Monthly reports will be received by the City Community Development Office
within 10 days of the end of the month.
C. Special data requests will be responded to in such a manner as to have
the response received by the City within 15 calendar days, subject to the
request being of reasonable limited scope.
I
I
~, t j , I
Agency: Ervin's Youth Club
Year: 1989 - 1990
APPENDIX B
Proiect Award
I. Facility Expansion
Facility improvement funding of up $24,000.00 will be provided for building
expansion, insulating. tiling. and normal exterior and interior finishing.
other needed improvements, and if there are funds remaining for assistance
with heating and air conditioning.
TOTAL $24,000.00
II. Operating Support
Operating support of up to $11,500.00 will be provided for personnel,
equipment and supplies, and other operating expenses. No payment will be
made until all reports are current at any point. Consistent delays in
meeting periodic reporting requirements may result in delays in processing
payment request.
TOTAL $11,500.00
GRAND TOTAL $35,500.00
I
I
, , 'J
APPENDIX C
METHOD OF PAYMENT
All payments shall be on a reimbursement basis only.
All requests for reimbursement shall be supported by proper invoices. payrolls,
checks, receipts, and other documentation as requested.
Any program income shall be submitted to the CITY through the DEPARTMENT at least
Quarterlv. Fees collected, if any, shall be reported but are not to be construed
as program income.
Requests for reimbursement shall not be reduced by any program income received.
"
.. . ..~
,,:,1::',,"-'"
, r
, J
Subpart K-0ther Progrllm
Requirements
I 570.&00 GeMrAI
(u) Seclion 1(H(b) tr the Act provides
Ihot sn)' grant under ~eclion lOG of the
Act 6hull be!T. ,c' nly if the grantee
certilies '\0 the stltisfuction of the
Secrela'ry. smol18 other thinp. thnlthe
grgnl "wilf lie.conducted and
administered in conlormity with Pub. L
M-352 and Pub. L. 00-2B-l." and. further.
thai the granlee "will comply with lhe
other provisions of this title and with
other applicable laws." SectioD 10-l(d)(1)
of the Acl requires thai the Secretary
dt:termine with respect to grants made
pursuant 10 section l00(b) (Entitlement
Grants) and 106(d)(2)(B) (HVD-
Administered Small Cities Grants), at
leasl on an annual basis, among other
things. "whether the grantee has carried
outlits] certifications in compliance
with the requirements and the primary
objectives of this title and with other
applicable laws. . . ." Certain other
statutes are expressly made applicable
\0 /Ictivities assisted under the Act by
the Act ilself. while othcr laws not
relerred to in the Acl may be applicable
10 zuch activities by their own terms.
Certain statutes or Executive Orders
which may ue applicable \0 activities
assisted under the Act by their own
terms are administered or enlorced by
governmental departrnenu or agencies
other than the Secretary or the
Departmenl This Subpart K enwnerales
laws which the Secrelary wiD \reat as
applicable to grants made under section
106 01 the Act, other than grants 10
. \ APPENDIX D
OTJbR PROGRA}1 REQUlRE~lliNTS
Stales made pursuanllo section lOG(d)
of the Act. for purp06es 01 the
determinations described above to be
made hy the Secretary under 6Cction
l04(d)(l) 01 the Act. including 6tatutes
expressly mode applicable by the Act
and certain other statutes and Executive
Orders for which the Secretary hos
enlorcement respon~ibility. The absence
of menlion herein of any olher stalute '
lor which the Secretory docs not ha ve
direct enlorcement responsibility is not
intended to be luken 8S an indication
Ihat. in the Secretary's opinion, such
statule or Executive Order Is not
applicable to activities Dssisted under
the Act. For lows which the Secretory
willlreat as applicuble to granls made
to Slates under section lOO(d) of the Acl
for purposes of the determination
required 10 be made by the Secre lary
pursuant \0 section 104(d)(2) 01 the Act.
see I 570.'1%.
(b) This Subpart also sels forth certain
additional program requirements which
the Secretar)' has determined to be
applicable to grants provided under the
Act as a matter of administrative
discretion.
(c) In addition to srants made
pursuant to section 100(b) and
lOG(d)(2}(B) of the ,I\ct (Subparts D and F
of this Part. respectiJ'ely), the '
requirements of this Subpart K are
applicable to grants'made pursuant to
sections 107 and 119 of the Act
(Subparts E and G, respectively).
~ 570.601 Pub. L 88-352 and Pub. L !Xl-
2B~; Executive Order 11063.
Section 10-l(b) of the Act provides that
any grant under section 106 of the Act
shall be made only if the granlee
ce'rtifies to the satisfaction of the
Secretary that the grant "will be
conducted and administered in
conformity with Pub. L 88-352 and Pub.
L. 90-284." Similarl\'. sectioD 107
provides that no gr~nt ma}' be made
D-l
.1
under that lection (SecretarY'1
Discretionsry Fund) or section 11 9
(UDAG) without Istisfactory aS6urances
10' the 8ame effect.
(a) "Pub, L ~52" relerl \0 Tille VI
of the Civil Rlghtl Act 011004 (42 U.S.C.
2()(x><:f eIIeQ.), which providez that no
person In the United Statel shnll on the
ground of race, color. or national origin,
be excluded Irom pnrticipa tion In, be
denied the benefits of. or be suLjected to
discriminstion under any program or
acllvlty receiving Federal financial
assistance. Section 502 01 the Civil
Rights Act 01 190-\ directs each Federal
depo.rtment and Bgency empowered to
extend Federul financial assistance to
any program or oclh'ity by way 01 grnnl
to effectuate the foregoing prohiLition
by issuing rules, rcgulations. or orden 01
generol opplicobiliry which sholl be
consistent with achicvement of the
, slalule authoritirro the financial
ussi6lance. HUD regulallons
implementing the requirements 01 Title
VI with respect 10 HUD programs are
contained in 24 crn Pari 1. '
(b) "Pub. L 9O-ZM" relers \0 Tille VIII
of the Civil Rights Acl 011968 (42 U.S.C.
3G01 ~I &eq.), popularly blown as the
Fair Hou6ing Act. which provides that it
is the policy of the United Stales to
provide, within constitutional
limitations. for fair housing throughout
the United States and prohibits any
person lrom discriminating in the sale or
rental of housing. the rmsncing of
housing. or the provision of brokerage
services, Including in any WilY making
unavailable or denying a dwelling to
any.perllon. because of race. color.
religion, &ex. or national origin. Title
V\I1 further requires the Secretary to
administer the programs and activities
relating to housing and urban
developmentln Il manner alfinnalively
to further the purposes of Tille VIII.
Pursuant to this statutory direction. the
Secretary reqwres that grantees
adminisler all programs and actiyilies
relaled to housing and community
developm~nt in a manner to
affinnlllively further flJir housing,
(c) Executive Order 11003. os
amended by Executil'e Order 12259,
directs the Department 10 lake all ;!ction
necessary and appropriate 10 prevent
discrimino lion because of race, color,
religion (creed), aex, or national origin.
in the sale. leasing, rental. or olher
disposition of residentiul property and
related facilities (including land to be
developed for residential use), or in the
use or occuponcy thereof. if BUch
property and related facilities are.
omong olher things, provided in whole
or in purt with the Ilid of loans,
iJd\'ances, granls, or cuntributions
lI~rce\Lto be made by the Federul
Government. HUD rcgulutions
implementing Executive Order 11003 are
contained in 24 erR Pari 107.
~ 570.602 Secllon 109 of the Act.
(a) Section 109 of lhe Act requires that
no person in the United Slates shall on
the ground of race, color, na tional origin
or sex. be excluded from participation
in. be denied the benefits of. or be
subjected to discrimination under. any
program or activity funded in whole or
in part with community development
funds made available pursuant to the
Act. For purposes of this section
"program or activit{' is defined as any
function conducted by an identifiable
administrative unit of the recipient. or
by any unit of governme~t. ~ubrecipient.
or private contractor receiving
comlnuni!)' development funds or loans
from the recipient. "Funded in whole or
in part with communi I)' dev'elcpment
funds" means that community
development funds in a:1Y amQunt in the
form o[ grants or proceeds from BUD'
guaranteed 10an6 have beery.,transferred
by tr.e recipient or a subrecipient to an
identifiable administrative unit and
disbursed in a program ;;r activity.
(b) Speclfic discriminatory actions
prohibiJed and correcth'e actions.
(1) A recipient may not. under any
program or activity to which the
.-.~ -.
I .1 \
regulutiuns of thi~ Pari may apply
directly or throufh contractua: or other
Ilrran~l'mcnts. on the ground of rllce,
color, nu lional origin, or sex:
(i) Deny all)' [acilities, scr\'ice6,
financiul/lid or other benefil8 provided
under the program or activity.
(ii) Provide on)' facilitie~, eervices,
financial aid or olher uenclits which are
different, or are provided in a different
form from thut provided 10 olhers under
the progrllm or activity.
(iii) Subject 10 se.gregated or separate
treatment in any fucility in, or in all)'
muller of process relotc;d to receipt of
any 8ervice or benefit under the progrum
or aClivity.
(iv) Restrict in any way access to, or
in the enjoyment of any advantage or
privilege enjoyed by others in
connection with facilities. services.
finoncial aid or other benefits under the
program or activity.
[v) Treat an individual differently
from others in determining whether the
individual aa tisfie8 any admission,
enrollment. eligibility, membership, or
other requirement or condition which
the individual must meet in order to be
provided any facilities, 8ervices or other
benefit provided under the program or
activi:v.
(vi) Deny an opportunity to participate
in a progr<lm or activity as an employee.
(2) A recipient may nol utilize criteria
or methods of administration which
have the effect of subjecting individuals
to discrimina tion on the basis of race.
color. nlllional origin. or sex, or have the'
effect of defeating or substantially
impairing accomplishment of the
oujectives of the program or activity
with respect to individuals of a
purticular race, color. national origin. or
sex.
(3) A recipient. in determining the site
or localion of housing or facilities
provided in whole or in part with funds
under this part. may not make selections
of such site or location which have the
effect of excluding individuals from,
denying them the benefits of. or .
subjecting them to discrimination on the
B-2
ground of roce, color, national erigin. flr
8ex: or wlaich have the purpo~e or effect
of defl'atinj:t or sllbslantis\ly impairing
the acr:umplishment of llae objectives cf
the Acl /lnd of this seCtion.
(4)[i) In administering s program or
aclivity funded in whole or in parl wilh
CDnC funds rcgardinR which the
recipient has previously discrimino led
against peT60ns on the ground of race,
culor. national origin or sex. the
recipient must tuke affinnative action to
ovcrcome the erfects of prior
discrimination.
(ii) E\'en in the absence of such prior
discrimination. a recipient in
adminislcrinR a program or activity
funded in whole or in part with CDI3C
funds should tuke affirmative Dction \0
overcome the effects of conditions
which would othcrv..'ise result in limiting
participatiun by persons o[ a particular
race. color, national origin or sex.
Where previous discriminotory practice
or usage tends. on the ground of race,
color. national origin or sex, to exclude
individuals [rom participation in, to
deny them the benefits of. or \0 subject
them to discrimina tion under any
program or activity to which this parI
applies. the recipient has an obligc;tion
to take reasonable action to remove or
overcome the consequences of lhe prior
discriminatory prllctice or usage, and to
accomplish the purpose of the Act.
(iii) A recipient shall not be prohibited
by this part from laking any action
eligible under Subpart e 10 ameliorate
an imbalance in service6 or facilities
provided to any geographic area or
specific group of 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 aection. nothing
contained herein shall be construed to
prohibit any rfl.cipient from maintaining
or constructing aeparate living facilitie~
or resl room facilities for the different
sexes. Furthennore, selectivity on the
basis of sex is not prohibited when
inslitutiona] or custodial services can
I
J
I
') APPENDIX E
SECTION 3 CLAUSE
-I
\,
"
T/lE FDLLO\HNG SECTION 3 CLAUSE SHALL IlE INQ.UDED IN ALL CONTRACTS FOR \.,lOR}( IN
CONNECTION \.,lITIi A SECTION 3 PROJECT:
A. The\.Jork to be performed under this contract is on a project assisted
under a program providing direct Federal financial assistance from
the l~partment of Housing and Urban Development and is subject to the
requirements of Section 3 of the Housing and Urban Development Act of 1968,
as amended, l2 U.S.C. l70u. Section 3 requires that to the greatest extent
feasible opportunities for training and employment be given lover income
residents of the project area and contracts for vork in connection \.lith the
project be a\.larded to business concerns \.lhich are located in, or o\.ffied in
substantial part by persons residing in the area of the project.
B. The parties to this contract vill comply vith the provisions of said Section 3
and the regulations issued pursuant thereto by the Secretary of /lousing and
Urban Development set forth in 24 CFR, and all applicable rules and orders of
the Department issued thereunder prior to the execution or this cont ract. The
parties to this contract certify and agree that they are under no contractural
or other disability \.Jhich vou1d prevent them from complying vith these
requirements.
C. The contractor \.Jill send to each labor organization or representative of
vorkers.vith vhich he has a collective bargaining agreement or other contract
of understanding, if any, a notice advising the said labor organization of
\.Jorkers' representative of his commitments under this Section 3 Clause and
shall post copies of the notice in conspicuous places available to employees
and applicants for employment ort raining.
D. The contractor vill include this Section 3 Clause in every subcontract for
\.lork in connectiqn \.lith the project and \.lill, at the direction of the
applicant for or recipient of Federal financial assistance, take appropriate
action pursuant to the subcontract upon a finding that the subcontractor is
in violation of regulations issued by the Secretary of Housing and Urban
Development, 24 eFR. The contractor \.lill not subcontract \.lith any subcontractor
\.lhere it has notice or kno\.lledge that the latter has been found in violation 'of
regulations under 24 CFR, and \.lill not let any subcontract unless the
subcontractor has first provided it \.lith a preliminary statement of ability to
comply vith the requirements of these regulations.
E. Compliance \.lith the provisions of Section 3, the regulations set forth in 24 eFR.
and all applicable rules and orders of the Department issued thereunder prior to
the execution of the contract, shall be a condition of the Feder!l financial
assistance provided to the project, binding upon the applicant or recipient for
such assistance, it6 successors ,and assigns. Failure to fulfill these
requirements shall subject the applicant or recipient, its contractors and sub-
contractors, its successors, and assigns to those sanctions specified by the
grant or loan agreement or contract through ~hich Federal assistance is provided,
and to such sanctions as are specified by 24 eFR l35.
E-l
NOT! CE
APPENDIX F
01.-:QUlREMENT FOR AITIR~TlVE ACT]
ENSURE EQUAL EMPLOYMENT OPPORTUNITY
TO
(EXECUTTVE ORDER 11246)
1. The Offeror's or Bidder's attention is called to the "Equal Opportunity
Clause" and t..'1e "Standard Federal EquAl Employment OpportunJ.ty ConstrUc-
tion Contract Specifications" set forth herein.
2. The goals and timetables for minority and female participation, expressed
in percentage terms for the Contractor's aggregate workforce in each
trade on all const-~ction work in the covered area, are as follows:
A. Goals for Female Utilization, All Trades:
AREA COVERED
Goals for Women apply nationwide.
GOALS AND TIMETABLES
Timetable
Goals
(percent)
F:::-om Apr. 1, 1978 until Mar. 31, 1979.... 3.1
From Apr. 1, 1979 until Mar. 31, 1980. . . . 5.1
From Apr. 1, 1980 until Har. 31, 1981. . . . 6.9
B. Goals for P~noritv Utiliza~ion:
TAMPJl.-ST. PETEP..5BtffiG, FLA., AREA
Area covered: P~llsborough, Pasco, and Pi~ellas
Counties, Fla.
Goals and Timetablesl
Trade
Goal
(percen t)
All. . . . . . . . _ . . . . . . . . . . . . . . _ . .
..
17.9
IFor the life of the project.
~nese goals are applicable to all the Contractor's const-~ction work
(whether or not it is Federal or federally assisted) performed in the
covered area.
The Contractor's co~?liance wi~ the Exec~tive Order and t..'1e regulations
in 41 CTR Part 60-4 shall be based on its i~plementation of t..~e Equal
OpportQ~ity Clause, specific affi=mative action obligations reauired by
F-l
\
the specifications let: fort..'1 in 41 CFR 60-4.) (a), a1 \ts efforts to meet
the goals established for tbe geographical area ...:he t..~e conuact
resulting from this solicitation is to be performed. The ho~s of w~nority
and fem31e employment and training must be substantially ~,iform tbroughout
the length of t..~e contract, and in each trade, and tbe contractor shall
c.a.ke A good fai th effort to employ w~nori ties and ....omen evenly on each of
its projects. The transfer of minority or female employees or trainees
from Contractor to Contractor or from project to project for t..~e sole
purpose 0f meeting the Contractor's goals shall be a violation of the
contract, the Executive Order and the regulations in ~1 CFR Part 60-4.
Compliance ....ith t..~e goals ....ill be measured against the total ....ork hou=s
performed.
3. The Contractor shall provide \.'Ti tten notification to the Director 0: the
Office of Federal Contract Compliance Programs ....ithin 10 ....orking days of
a....ard of any construction subcontract in excess of SlO,OOO at any tier
for constrUction work under tbe contract resulting from d1is solicitation.
The notification shall list t..~e name, address and telephone number of the
subcontractor; employer identification number; estir~ted dollar amount of
the subcontract; estimated starting and completion dates of the subcontract I
and the geographical area in ....hich the contract is to be perfo~ed.
4. 1'.s used in this Notice, and in the contract resulting from this solici ta tion,'
the "covered area" is Pinellas County, ~lorida.
60-4.3 (a)
EQUAL OPPORTUNITY CLAUSE
During the performance of this contract, the contractor agrees as follo....s:
1. Tne contractor will not discriminate against any employee or applicant
for employment because of race, color, religion, sex, or national origin.
Tne contractor ....ill u0~e affirmat~ve a~tion to e~sure t..~at applicants are
employed, and that employees are treated d~ing employment ....it..~out regard
to their race, color, religion, sex, or national origin. Such action shall
include, cut not be limited to the following: Employment, upgrading,
demotion, or transfer; recrui t:Jnent or recrui ment advertising; layoff or
terminatipn, rates of payor other fo~s of compensation; and selection
for training, including apprenticeship. Tne cont=actor agrees to post
in conspicuous places, available to employees ana applicantS for employ-
ment, notices to be provided setting forL~ the provisions of this non-
discrimination clause.
2. The contractDF ~ill, in all solicitatio~.s or advertiseDents for employees
placed by or on behalf of ~~e contractor, state L~at all oualified
- ..
applicants ....ill receive consideration for er.ployment \.'i thout regard to .
race, color, religion, sex, or national origin.
3. The contractor ~ill send to each labor ~~ion or representative of ~orkers
~ith ~hich he has a collective bargainir.g agreement or other contract or
~derstanding, a notice to be provided advising the said labor union or
....orkers' represer.tatives of the,contractor's co~tm~~ts under this
section, and shall post copies of t..~e notice in conspicuous places avail-
able to employees and applicants for employment.
F-2
c
\
The contractor ....illl:...~1ply ....:th all provisions of [xel _lve Order 11246
of September 24, 196':5, and of the rules, regulations; and relevant orders
of the Secretary of Labor.
,
5. The contractor ....ill furnish all information and reports re~red by
Executive Order 11246 of September 24, 1965, and by rules, regulations,
and orders of the Secretary of Labor, or pursuant thereto, and ....il1 permit
access to his books, records, and accounts by L~e a~~nistering agency
and the Secretary of Labor for' purposes of inves tiga tion to asceru.in
compliance ....ith such rules, regulations, and orders.
6. In the event of the contractor's non-compliance ....ith the nondiscrimination
clauses of this contract or ....ith any of the said rules, regulations, or
orders, this contract may be canceled, terminated, or s~pended in ....hole
or in part and the contractor may be declared ineligible for further
Government contracts or federally assisted constrUction contracts in
accordance ....ith procedures authorized in Executive Order 11246 of
September 24, 1965, or by rule, regulation, or order of the Secretary
of Labor, or as otherwise provided by la.....
7. l~e contractor ....ill include L~e portion of the sentence ~ediately
preceding paragraph (1) and the provisions of paragrapp~ (1) L~ough (7)
in every subcontract or purchase order unless exempted by rules, regula-
tions, or orders of the Secretary of Labor issued pursuant to section
204 of E,xecutive Order 11246 of September 24, 1965, so that such p:r:-ovisions
....illbe binc.ingupon each subcontractor or vendor. The contractor will
take such action ....ith :r:-espect 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~le
event a con~actor ~ecomes involved in, or is threatened ....ith, litigation
I..'i th a ~ubcontractor or vendor as a resul t of such direction by t.~e
administering agency, the contractor may :r:-equest the United States to enter
into such litigation to protect the interests of the United States.
ST.7J.,NDl-.RD FEDERAL EQUAL EHPLOY1-L'""NT OPPORTUNITY CONSTRUCTION COh'TRACT
SPECITICATIONS (EXECUTIVE ORDER 11246)
1. As used in these specifications:
a. "Covered area" means L~e geog=aphical area described ~n ~~e solicita-
tion fro~ ....hich this contract resulted.
b. "Directo:r:-" means Directo::, Office, of Federal Contract COI:1pliahce
Progr~~, Onited States Department of Laber, or any person to ....hom
the Director delegates authority.
c. "E!J:ployer identi.:ication m::rr.be.r" mea!'~ the Federal Social Security
nurrber used OD ~~e tu.ployer's Quarterly Federal Tax Retu=-n, O. S.
Treasury Depar:::nent Fo=m 941.
c. "P.J.nority" includes:
F-3
\
(1) Black (all plrsons having origins in any of ~~ Black
African racial groups not of Hispanic origin)}
(2) Hispanic (all persons of Mexic~, Puerto Rican, Cuban,
Central or South American or other Spanish Culture or
origin, regarcless of race) I
(3) Asian and Pacific Islander (ell persons having origins
in any of the original peoples of L~e Far East, Southeast
Asia, the Indian Subcontinent, or the Pacific Islands); and
(4) American Indian or Alas};an Native (all persons ha\'ing
origins in any of the original peoples of Nor~ America and
maintaining identifiable tribal affiliations through member-
ship and participation or community identification).
2. h~enever the Contractor, or any Subcontractor at any tier, subcontracts
a portion of the work involving any construction trade, it shall
physically include in each subcontract in excess of $10,000 the provi-
~tons of these specifications and the Notice which contains the ~p-
plicable goals for minority and female participation and which is set
forth in thesolici t.a tions from which this contract resulted.
3. If the Contractor is participating (pursuant 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 ~nd timetables)
shall be in accordance with that Plan for those trades ~hich have unions
participating in the Plan. Contractors must be able to demonstrate their
participation in and ccmpliance wiL~ the provisions of any such Borneto~
Plan. Each Contractor or Subcontractor participating in an approved Plan
is indi viduall:! required to comply wi th its obliga tions under .the EEO
clause, and to make a good faith e'ffor-c to achieve each SlOal UJ1Cer the
Plan in each trade in ~hich it has employees. The overall good faith
perfo~nce by o~~er Contractors or Subcontractors toward a goal in an
approved Plan does not excuse any covered Contractor's or Subcontractor's
failu=e to take good faith efforts to achieve the Plan goals and time-
table.
4. The Contrac-cor shall implement the specific affirmative action standards
provided in paragraphs .7,a through p of these specificatior.s. The goals
set forth in the solicitation from which this contract resulted are
expressed as percentages of the total hou=s of employment and training
of minority and female utilization the Contractor should reasonabiy be
able to achieve in each const-ruction trade in-vnich 'it has employees in
the covered area. The Contractor is e^~ected to make substantially
uniform progress to~ard its goals in each craft during the period
specified.
5. Nei ther the pro\ris ior.s of allY collective bargaining agreement, nor tbe
failure by a Q~ion wi~ whom G~e Contractor has a collective bargaining
agreement, to refer either minorities or wom~ shall e>:cuse the Contrac-
tor's obligatiors Q~der these specifications, Executive Order 11246, or
the re~~lations promulgated pursuant thereto.
F-4
.6. Ir. oree:: f::= ~-Je ;-;c;I....'~.=,:..:.~:~ :..:a':"'::.:...ng :-l2~S c':' c.i--.,t.;"~~'._""":""~'::' c...;.~ .__':"~~_.,'~'':J
to be Cou...ted in meeti.\t.'1e goals, such apprentices ~nd t=ainees must.
be employed by the C~~L Jctor during ~~e training pe:il and the
'Contractor must have xlade a commitlnent to employ the a rentices 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. Tile Contractor shall take specific affirmative actions to ensure equal
employment opportuni ty. TIl.e evalua tion of the Contractor' 9 compliance
....i th these si'ecifica tions. shall be based upon its effort to achieve
maximum resul ts from its actions. The Contractor shall docUJl1ent these
efforts fully, and shall implement affirmative action steps at least as
extensive as the follo....ing:
a. Ensure and maintain a ....orking environment free of harrassment,
intimidation, and coercion at all sites, and in all facilities at
....hich the Contractor's employees are assigned to ....ork. The
Contractor, where possible, will assign two or lIlore.....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, ....ith specific attention to minority or
female individuals working at such sites or in such facilities.
b. Establish and maintain a current list of minority and female
recrui OIlen t sources, provide wri tten notifica tion to minori ty and
female recruitlnent sources and to community organi=ations ....hen the
Contractor or its unions have emplo:~ent opportunities available,
and maintain a record of ~~e organizations' response~.
c. Maintain a current file of the names, addresses and telephone
numbers of each minority and female off-the-street applicant and
minority or female referral from a union, a rec~i~ent source or
communi ty organi za tion and of wha ~ 'action ....as taken ....i ~~ respect
to each such individual. If such individual was sent to t.~e union
hiring hall for referral and was not referred back to ~~e Contractor
by ~~e union or, if referred, not employee by the Contractor, this
shall be documented in the file with the reason therefor, along with
whatever additional actions the Contractor may have taken.
'\
d. Provide immediate written notification to the Director when the
union or unions with which the Cont=actor has a collective
bargaining ag~eement has not referred to the Contractor a ~~nority
person or woman sent by the Contractor, or when the Contractor has
othQr information that the l.:.11ion referral p::ocess has impeded .the
Con~acto::'s efforts to meet its obligations.
e. Develop on-the-job training opportl.:.11ities and/or participate in
training programs for the area ~hich expressly include minorities
and women, including upgrading progr~s and apprenticeship and
trainee programs relevant to ~~e Contractor's employment needs,
especially those programs f~~ded or approved by the Department of
Labor. The Contractor shall provide notice of these programs to
the sources compiled under 7b above.
f. Disseminate the Contractor's EEO policy by providing notice of the
policy to unions and training progr~~ and requesting L~eir coopera-
tion in assisting the Contractor in ~eeting its EEO obligations; by
including it in any policy ~~nual and collective bargaining agreement; by
F-5
I
.
"
\
.I
publicizing it in the company newspaper, ~nnu~l report, etc.; by
specific review of the policy with ~ll management personnel and
with all minority and female employees at least once a year; and
by posting the company EEO policy on bulletin boards accessible
to all employees at each location ....here constrUction Io.'ork is
performed.
g. Review, at least annually, the company's LEO policy and affirmative
action obligations under these specifications Io.'ith all employees
having any responsibility for hiring, assignment, layoff, termina-
tion or other employment decisions including specific review of
these items wi~. onsite supervisory personnel such as Superintendents,
General Foremen, etc., prior 'to ~~e initiation of construction Io.'ork
at any job site. 1\. written record shall be made and maintained
identifying the time and place of these meetings, persons attending,
subject n~tter discussed, and disposition of the subject matter.
h. Disseminate the Contractor's EEO policy externally by including
it in any ~dvertising in the newS media, specifically including
minority and female news media, and providing written notification
to and dis.:ussing the Contractor 's EEO policy with other Contrac-
tqrs and Subcontractors ....ith whom 'the Contractor does or antici-
pates doing business.
i. Direct its recrui ment efforts, both oral and written, to minority,
female and community organizations, to schools wi~'1 minority and
female students and to minority and female recruitoent and training
org~,izations serving the Contractor's recruitment area and employ-
ment needs~ Not later than one month prior to the date for the
acceptance of applications for apprenticeship or other training
by any recruitment source, the Contractor shall send written
notification to organizations such as the above describing G'1e
openings, screening procedures, and tests to be used in the selection
process.
j. Encourage present minority and female employees to recruit other
minerity persons and women and, where reasonable, provide after
school, summer and vacation employment to minority and female youth
both on the site"and in other areas of a Contractor's workforce.
k. Validate all tests and other selec~on resuirements where L~ere
is an obligation to do so ~~der.41 CFR Part 60-3.
1. Conduct, at least annually, an invento~ and evaluation at least of
of all ~nority and feffiale persor~el for promotional oppor~~ities
and encourage ~~ese employees to seek or to prepare for, through
appropriate training, etc., such oppornL~ities
m. EDSure that seniority practices, job classifications, work assign-
,ments and other personnel prac~ces, do not have a discrimi.:1a tory
effect by continually monitoring all personnel a:1d employment
related activities to ensure that the ~o policy and the Contractor's
F-6
obligations uncle) these specifications are being .f .iied out.
n. Ensure that all facilities and company activities are non-
segrated except that separate or single-user toilet and
necessary changing facilities shall be provided to assure
privacy between the sexes.
o. Document and rr~intain a record of all solicitations of offers
for subcontracts from minority and female consL~ction
contractors and suppliers, including circulation of solicitations
to minority and female contractor associations and other business
associa tions.
p. Conduct a review, at least annually, of all supervisors' adherence
to and performance under the Contractor's EEO policies and
affirmative action obligations.
8, Contractors are encouraged to participate in voluntary associations
which assist in fulfilling one or more of their affirmative action
obligations (7a through p). The efforts of a contractor association,
joint contractor-union, contractor-colIlIIlunity, 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 jn the group, makes every effort to assure that the group has
a positive impact on the employment of minorities a~d wOwen in the
indus L;', ensures that the concrete benefi ts of the program axe
reflected in the Contractor's minority and female workforce partic-
ipation, makes a good faith effort to meet its individual goals and
timetables, and can provide accesS to documentation which demonstrates
the effective~ess of actions taken on behalf of the Contractor. The
obligation to comply, however, is the Contractor's and failure of such
a group to fulfill an obligation shall not be a defense for the
Contractor's noncompliance.
9. A single goal for ~~norities and a separate single goal for women have
been established. The Contractor, however, is required to provide
equal emp~oyment opportunity and to take affirmative action for all
minority groups, both male and fe~~le, and all women, both minori~
and non-minority. Consequen".:ly, t.:'1e Contractor may be in violation
of the Executive Order if a particular group is employed in a substan-
tially disparate manne= (for example, even L~ough the Contractor has
achieved its goals for women generally, the Contractor rr.ay be in
violation of the Executive Order if a specific minority group o~ women
is underutilized).
10_ Tne Contractor shall not use the goals and timetables or affirmative
action standards to discriminate against any person because of race,
color, religion, sex, or national origin.
11. The Contractor shall not enter into any Subcontract with any person
or fi=:t debarred from Government contracts pursuant to Executive
OrdE;r 11246.
F-7
"12. The Contrac~or shll... carry out: such sanctions and ,- .1 ties for
violation of these specificatior~ and of the Equal Opportunity Clause,
-including sus~ension, 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 i t.s obliga dons under these specifica tions,
shall implement specific affirmative action steps, at least as exten-
sive as those standards prescribed in paragraph 7 of L~ese specifica-
tions, so as to achieve maximum resul ts from i.ts efforts to ensure
equal employment opportunity. If the Contractor fails to comply ....ith
the requirements of the Executive Order, the implementing regulations,
or these specifications, the Director shall proceed in accordance ....ith
41 O'R 60-4.8.
14. The Contractor shall designate a responsible official to monitor all
employment related acti vi ty 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, const...ruction t=ade, uni'on af:ilia tion if any, employee
identification number ....hen assigned, social security number, race,
sex, status (e.g., mechanic, apprentice, trainee, helper, or laborer),
dates of changes in status, hours ....orked per ~eek in the indicated
trade, rate of pay, and locations at ~hich the ~ork ~as performed.
Records shall be maintained in an easily understandable and retrievable
form; ho~ever, to the degree that existing records satisfy this
requirement, contractors shall not be required to ffiaintain separate
records.
15. Not..1)ing herein provided shall be const:::ued as a limitation upon the
application of other la....s ....hich establish different standards of
compliance or upon the application of requirements for t..~e hiring of
local or other area residents (e.g., those under t..~e Public Works
Employment Act of 1977 and '~e Comm~~ity Development Block Grant
Program) .
..
F-8
I
.I
APPENDIX G
OMB
Circular A-llD
..
I
-,
Office of Management and Budget Circular A-110 (7/30/76)
A-110:1
OFFICE OF MANAGEMENT AND
BUDGET
general revenue sharing. 103.ns. 102.n
gUR.rantees, or insurance. and (c) direct
payments of any kind to individuals,
b. The term "reci~ient.. includes the
following types of nonprofit or!(aniza-
lions that are receiving Federal funds
from a Federal 8~ency 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-
\'ate nonprofit organi7.ations such as (but
not limited tol commlU1ity ;l..ction agen-
cies, research institutes, educational as-
sociations. and health centers.
The term does not include foreign or
interna tional 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 nre de-,
signed as federally-funded resenrch and
developmen t centers,
7. RCQucsts lor cxccptLons.-The Office
of Management and Budget may grant.
exceptions from the requirements of this
Circular when exceptions are not pro-
hibited under existing laws.
However, in the Interest of maximum
uniformity, exceptions from the re-
quirements of the Circular v:ill be per-
mitted only in unusual cases. Agencies
may apply more restrictive requirements
to a class of recipients '\1/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'Cleposltorles,
Attachment B BondIng and Insurance,
Attachment C Retention and custodial re-
qulremen'l.S for records,
Attachment 0 PrO{:ram Income,
Att..chment E Cost shnrlng ..nd m"tchlng.
Att&chment F Standards for flnanclal man-
agement systems.
Attachment G Flnancl,,} reportIng require-
ments.
Attachment H MonitorIng and reportIng
progr..m performance,
Attachment I Payment requlr~mp.nts,
Attachment J Re\.islon of finnnclal plans,
Atta.chmen.~ K Closeout procedures,
Att"chment L S,uspenslon nnd terminatIon
procedures,
Attachment M Standard lorm for applying
lor lederal assistance.
Attl\chment N Property management stand-
ards.
Attachment 0 Procurement standards,
[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 establishments.
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 consisten-
cy and unJformity among Federal agen-
cies In the administratlon of grants to.
and other Il€reements with, public and
private Institutions of higher educatlon.
public and private hospitals, and other
Quasi-public and private nonprofit or-
ganizations. This Circular does not apply
to grants, contracts, or other agreements
,between the Federal Government and
units of State or local governments
covered by Federal Management Cir-
cular 74-7.
2. Effective date.-The standards in
the attachments to this Circular v,'ilJ be
applied as soon as practicable but not
later than January 1,1977.
3. SUPeTsession.-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 grants.
4. Policy intcnt.-The uniform stand-
ards and requirements included in' the
attachments to this Circular replace the
varying and often conflicting require-
ments that have been imposed by Fed-
eral agencies as conditions of grants and
other agreements v,'ith recipIents.
5. Applicability and. scoPc,-Except as
provided belO"w, the stancL9.rds promul-
gated by this Circular are applicable to
all Federal agencies, If any statue ex-
pressly prescribes policies or speCific re-
quirements that dilTer from the st.and-
ards provided herein, the proviSions of
the statute shall govern.
The proviSions of the attachments of
this Circuiar shall be applied to subre-
cipients performing substantive work
under grants that are passed through or
awarded by the primary recipient if such
subrecipients are organizations de-
scribed in paragraph 1.
6. Definitions.
a. The term "grant" means money or
property provided in lieu of money paid
or furnished by the Federal Government
to recipients under programs that pro-
vide financial assistance or that prOVide
support or stimulation to' accomplish a
public purpose. The term "other agree-
ments" does not Include contracts which
are required to be entered into and ad-
ministered under procurement laws and
regulations. Grants and other agree-
ments exclude Ca.) technical a.ssistance
programs, which prOVide services instead
~, ...... ~ '""' ~-
9. Exceptions lor ccrtain recipLcnis.-
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 notified in writing as to:
a. Why the additional standards are
being imposed;
b, what corrective action is needed.
Copies of such notifications shall be
sent to the Offlce of Management and
Budget and other agencies funding that
recipient at the same time the recipient
10. Rcsponsibilities,-Agencies respon-
sible for administ.ering programs that in-
volve !;rants and other agreements with
reCipients shall issue the appropriate
regulations necessary to implement the
provisions of this Circular. All portions
of sueh regulations that involve reeord-
keeping and/or reporting requirements
subject to the proviSions of the Federal
Reports Act and OMB Circular A-40
must be submitted to OMB for clearance
before being introduced into use, Upon
,request all regulations and instruetion~
implementing this Circular shall be
furnished to tlle Office of Management
Rnd Budget. Agencies shall also desig-
nate an official to serve as the agency
representative on matters relating to the
!mplementa tion of this Circular. TIle
name and tltle of such representative
shall be furnL~hed to the Office of Man-
~gement and Budget not later than Au-
gust 30. 1976,
I L InQuirics.-Purther information
concerning this Circular may be obtained
by contracting the Financial Manage-
ment Branch. Budget Review Division.
Office of Management and Budget,
Washington, D.C. 20503, telephone 395-
3993.
JAMES T. LYNN,
Director.
ATrACHMF:NT A,~IRCULAn No, A-lID
CASH DEPOSITORIES
1. ThIs attachment sets 10f'th 6tandards
governIng the use 01 banks and ottler In-
stltutlons as cJeposltorles of lund", "d.anced
under grants and other agreement.s,
2. Except lor sItuations descrIbed In I'an-
graphs 3. 4. and 5, no Federal sponsorIng
agency shall:
a, Require physical segregation 01 cash de-
positories for funds which are provided to a
recipient.
b. Establish nny ellslblllty requlr.ement.s
for casb deposltorle..s lor funds which are pro-
vided to a recIpient,
3, A separat.e "ank a"count shall be require
,,'hen applicable letter-of-crcdlt agreements
provIde that dr8wdowns will be mr.de when
the re<:lplent'6 checks are presented to the
bank lor payment.
4. Any moneys advnnced to a recipient
,,'hlch are subject to th~ contrt>l., or regula-
'.Ion 01 the UnIted States or any 01 Its otlkers.
q;ents or employecs' (publiC moneys is de-
fined In Tressuf\' CIrcular No, 1.76, as
amended) must be. deposited In a ban'k wi th
Federal Deposit Insurance Corporation
(FDIC) Insuro.nce coverage nnd the halance
exceeding the FDIC coverage must be col.
latually secured,
5, Consistent wIth the national I;oal of
expanding the opportunities for minority
buslnes' enterprises. recIpients and "lib.
recIpients shall be encouraged 'to use minor.
Ity banks (a bank ":hlch Is o"'ned at least 50
percent by minority group members),
ATrACHMI:NT B,-CIRcot.AR No, A-ll 0
BONDING ^ND INSURANCE:
:. This attachment sets lorth bonding nnd
Insurance requlrement.s lor grants and other
agTecments ,,1th reclplent.s. No other bond-
Ing and lru;urance requlremen,t.s shail be Im-
posed other than those normally required by
the recipient.
2. Except as otherwise required by la,,', "
grant or other agreement that requires the
contractIng (or subcontractlnr) for con-
stn.lc>tlon or fnc1l1ty lmprovement5 shn.ll pro.
,__ - . '\-. ^ - ~ _' _' _._. . I. (,_",........,. ""
I
Office of Management and Budget Circular A-110 (7/30/76)
quire menU; relating to bid gur.ranteelS. per-
torma.nce bOnds, and payment bOntU unlees
tbe construcLlon contrsct or subcontract ex-
uedB UOO,OOO. ror those oollltract.6 or oub-
contr-e.ct.a exceeding '100.000, the rederal
agency may accept the bOnding policy and
requlrement.a at the grantee provided the
Tederal agenc)' he.s made'.. determlnaLlon
tbat the Government'. Interest ~ adequately
protected. It auch a determination has not
been ma.de, the minimum requlrement.s ohall
be as tollowa:
a. A tnd VUClTantu jrom ecu:h b!d4.cr equiv-
alent to JIve ptTcent oj the btC prtce,-
The "bid guarar\Jtei!" .hall cons1Bt 01 a firm
commltment ouch as a bid bOnd. cerUfied
cbeck, or other negotiable Instrument ac-
companying a bid M assurance that the bid-
der will. upon acceptAnce or his bid. execute
ouch contractual documenl.8 ... may be re-
quired within the Ume opeclfied.
b. A perjormance bond on the part oj the
con t rcu: tor lor 100 percent oj the c=trcu:t
"P'"lce,-A "perfoimAnce bond" Is one executed
In connection with a contrnct to secure tul-
fillment or &1J the contractor'. obllgatlono
under ouch contract.
c. A. payment bcm4 on the part oj the con-
trcu:tor jar 100 percent OJ the e=trcu:t
pril:e.-A "payment bOnd" Is one exeeuted In
connection with a contract to 68sure pay-
ment ... required by law or all persons .up-
plying labOr and material In the execution or
the ....ork provided tor In the contract.
3. Where the Pederal Government guaTl>n-
teell or IIlllu~ tnt. repayment or money
bOrrowed by the recipient. the Federal
ageney, ..t It.! discretion, may require aee-
quate bonding &nd lnsur..nce 1! the bOnc1lng
and Insurance requlrement.B or the recipient
are not deemed a.dequ..te to protect the In-
terest at the Peder..1 Government.
4. The l"ecl.eral .poDBOrlng e.gency may re-
quire a.dequate fidelity bOnd covere.ge ,,'here
tbe recipient bs.s no cover&ge and the bOnd ~
needed fto protect the Government.o Interest.
5. Where bOnds are requlred In the oltu..-
tlons descr1Ded abOve. tbe bOnds ohall be ob-
tAined trom comp&nles holding certlficate<5 at
authority ... acceptable .urdl.. (31 CPR
223) .
AnAeRJoO:I'''''' C,--CncuLAJI No. A-110
&. rn: N'T'ION' A N"D C"O BTODIAL ILLQ U1lL.X' .La NTS roa
aJ:COIlDB
1. Th~ attachment aet.e forth record reten-
tion requlrement.6 tor ~&nt.! and other &gree-
ment.a with reclplent.a. Federal oponaorlng
"l>"ncles "h&1l not Imp05e any record reten-
Uon requlrement<! upon rec1plent.a other than
thO&e described below.
:/, ExceRl: lor paragraph 1. thl. l>tt.achment
a1M> applies to .ubreclplents .... reterred to
In po.ragn.ph 5 at the bs.slc circular,
3. Plnancl&1 records. oupportlng document<!
.u.tlBtlc&1 records, and all otber record.. pertl:
nent to an "bT'=emen t sh&11 be retained tor a
periOd at three yelUll, wIth the to\) 0""1 06
qUll.ll:lcatlOIlll:
L It any lltlgatlon. clalm or audit Is BLarted
berore the expIration at the 3-year periOd. the
rooorclll sh&11 be ret.alned untll all lltlgatlons
cl"ImJ;, or audIt finl11ngs Involving the recor~
hav. bei!n Te80lveQ
b, Recomo tor n~nexpend"ble pfO?erty ac-
qUire<! Wlt.h F'eclenJ tunclll aball be retaIned
tor S yelUll a.!ter It.> final dl8po<!ltlon
c, Wben rN'.ord. r.re transterred U, Or maJn-
talned by tbe Federal gpoll&Ortng ageocy the
3-y=r retention requlrement 18 not app'llca-
bl. to tb. recIpient.
~. The retention period StA.--tIs trom the
elate at the .ubnua.lon at the Ilnal upendJ-
t~ report or, tor !;T&Dt.! and other &gree
:"eot.a tbat are T'eoe....ed a.nnually, tram th:
no t.e of the RubmlsBlon of the a.nnull.l
Clcl,,1 .t.&ttu report,
6. IWclplent organIzations should be au-
thorized b)" the rederal sponsoring ,,€ency.
It the)' 60 desire, to substitute mlcrofilm
copies In lieu 01 onrlnal records.
6. The P'ederal spon80rlng ,,€enq' shall re-
qUellt tranaler or certain records to It.a cus-
tody trom recipient organlu.tloDB wben It
determlnell that the recorclll po.osess long-
term retention value. However, In order to
avoid dupllcate record -keeping, a Federal
apoD&Orlng agency may make arrangement.6
\\11h recelplent organlzatloDB to r.taln any
records that are continuously needed tor
Join t use.
7. The head of the Federal .ponserlng ,,€en-
cy and the Comptroller General at Ihe United
St.ate6, or an)' or their duly authorlud repre-
oentatlves. .hall h8ve access to 1Ul}' pertinent
book.5, documentB, papero. and recorda of the
reCipient orglLn.lzatlon and their .ubre-
clplentB to make a.udlt.6, examlnatioru;, ex-
cerptB and tranocrlpt.6,
8, Unl..... otherw1Be required by la"', no
Pederal opoDllOrlng agency ...'>all pla.ce re-
strlctlOD8 on recipient organlZBtlOD8 tb..t wlll
11mlt publlc access to the recorc1.!l at recipient
organizatIons that are pertinent to a grant
or &greement except when tbe agency can
demonstrate that auch records must be kept
con.tldentl&1 and would h.ve been excepted
tram d~cl06ure pUrBUJl.nt to the Freedom of
Intorma.tlon Act (6 U.S.C, 652) U the recorc1.!l
ha.d belonged to tbe Federal sponsoring
&gency.
A'l:TACHIoaNT D.--Cmct1LA1 No. A-llD
PIlOGIlAl>( INCO>4X
1. P'ederal 'poDBOring &g'Oncl... ahall apply
the .tAndarc1.!l .et torth In thla att&cbment in
requiring recipient organizations to 1LCC0unt
lor progrIUD Income related to proJect.B
lln.anced In ,,'bole or In part w:lth Pederal
lunde. PTognun Income repreeent.6 gTOlll! In-
come earned by tbe recipient lrom the ted-
erally .upported activities. Such earnings ex-
clude Interest earned on advances a.nd may
Include, but wlll not be limited to, Income
tram aervlce teell, .ale of commod1tl.... uBAge
or rent.al 1_, and roy&1tles on patent<! IWd
coprlgbtll.
2. Interest earned on a.dV&DCCS or Federal
tunds abaU be remitted to the l"edual agency
ercept lor lnterest earned on adn.noes W
Su.tee or IIllltl'\llnrn.t&1It1ee at " St.&te all pro-
vided by the Intergoverrunentl>l Cooperation
Act at 1968 (Publlc L.a.w ~77).
3. Proceedo tram tbe &ale ot r-.I and per-
BOnal property either provIded by the l"ed-
eral Government or purch....ed In wbole or In
part w:lto Pederal tunds. .h&11 be handled In
a.ceoro&ncc w:lth Atu.Cbment N to tblB cir-
cular pertaining to property mana.gement.
(. Unlese tbe &greement provides other-
wlBe, reclplentB sball bave no obligation to
the F'eclerll.l Government w:ltb respect to
roy&1t1es received .... a result at copyrlght.B or
patent.B pnxluced under the gr&Dt or other
agreement (se<: P~ph 8. Attachment N).
5. All other program Income earned dur106
the project period shaU be ret.a\ned by the
recIpient a.nd, In accordL"lCe ,,'Itb the grant
or other &greement, .hall be:
a.' Added to tunds cOmmJtt.ed to the proJ-
ect by tbe Federal sponsoring e.gencv and
recipIent organization and be UBed to t~rther
ellglble pfOGTam obJectlve6;
b. Uaed to Ilnance the non-Federal share
at tbe project wben approved by the Pederal
8pODBOrt06 &geocy: or
c. ~ucted tram the total project C06ts
In determinIng the net oe>au, on ....hlch the
l''ederal share at C06ts wll1 be baaed.
ATrACSWrN'r E,--CDtCUl.AJt No. A-II0
COST 8 H...l.1Df C AN n U A TC HtN 0
1. Tb~ att&chment set.B torth criteria
Procedur.... tor the allo....bUlt, at CAJ',h
J
A-110:2
and
n:1d
In-kind contributions maee by reclplentB or
subreclplent.s (Il-S reterred to In plU'a~aph 5
01 the bulc circular), or third parties In oat-
t&lylng COBt .harlng and matchIng requlre-
ment.6 at Federal sponsoring agencies. Thl.
..ttacbment aloo esu.bl~h.. crIteria tor the
evaluation at In-kind oontrlbutlons maee by
tblrd partie., and ,upplement.s tbe guIdance
set torth In Federal Management Circular
13-3 ....1l1h respect to cost sharing on teder-
al1y-oponsored rese..rch.
2. The tollowlng definitIons apply tor the
purpose at th16 atu.chment:
... Project costs ,-ProJect coot.s are all &1-
lo....nble costB (&5 set torth In the appllcnble
Federal cost principles) Incurred b)' a recipi-
ent and the value at the In-kind contrlbu-
tlODll made by the recipient or third parties
In accomplishing the obJective. or tbe grant
or other agy-eement during the project or PrO-
g",m perIod,
b, Cost sharln" aM T714tchln".-ln general,
cost abo.rlng and matching represent that
portion at project or program coot.6 not bOrne
by the FeCleral Government.
c. Ccuh e=trlbuttons,--ClUih contributions
tepre5Cnt the recIpIent'. c....h outlay. lnclud-
Ing the outlay at money contributed to the
recipient by non-Pederal thIrd pr.rtl....
d. In-kind contrtbutkms.-ln-klnd contrl-
butlOnB repreBent the value at noncash con-
tributions provIded by the recIpIent and
non-Fede",l tblrd partIes. Only ....hen au-
t1borlzod by Federal legl.latlon. may property
purchs.sed wltb P'ec1eral lunde be considered
... tbe reclplent.o In-kJnd contribution.. In-
kind contributions may be In the torm at
cbargee tor re&1 property &nd non-upand-
able personal property, and tbe nJue or
goods and servlceJl directly benefiting and
8pecUically Identlfia.ble to the project or
program.
3. General guidelines tor oomputlng cost
.harlng or matcblng are &5 10l!oWll:
a. C.o8t &har~ or mAtching mAY co1Ulst
at:
(I) Cbargea lncuTTed by the recipIent ...
project COStll. (Not &11 cha.rges requlre cash
outla)'ll by the recipient dur1ng 't1be project
period; examples AN: depreclat.lon and U8e
charges tor bulll1l.np and equipment.)
(2 ) Pro J eet C06 t<! fi na.n ced 'Wi th c:a.sh co n -
trlbuted or donated to the recipient by other
non-Pederal public a.gencl.es and l.n.8t1tutlons,
..nd private organizations &nd IndlvlduaU.
and
(3) Project C.Q6t.B repre8ented by ...rvl....
and real and pen.ona.1 property, or use there-
at. donated by otber non-Federal publlc
&gencl.. &nd IIllltltutlons, &.od pr\l;'ate ofK1'-
nlzatlons &nd IndJv1duaU. '\
b. All contribution&, bOth cash &nd 1n-
kInd.. &ball be accepted ... part at the recIpi-
ent'. coet ah&:1Dg ..nd mAtching wben Buch
contrIbutIons meet a.1I 01 th'e tollOwUll;
criteria :
(1) Are vertnabl. lrom the recipient'.
records;
(2) Are not Included... contrlbutlOIlll lor
any other tederally-.......l.ted program;
(3) Are nec......ry ..nd retlJ>Onable tor prop-
er ..nd e:nclent ..ccompUahment ot project
ObJectiVes;
(4) Are types of charges that would be ..1-
lo",.,.ble under tbe applicable C08t prlnclplee;
(5) Are not paid by the F'ecler..l Govern-
ment under another 1Ul81rt&oce a.gn>em.Bnt
(unles. the agreement ~ authorized by Fed-
eral Ia.... to be ue.ed lor COlrt .hulng or IDA tch-
Ing);
(6) Are provided tor In the approved budg-
et when requlred by the F'ecleral &geocy: and
(7) Conlorm to other provisions at th~
.. ttlLChment.
~, Va.lues tor recIpient in-kind contribu-
tions wUl be ...tabl1.wed In a<:cordance w:lth
the a.ppllcr.ble C08t princIples.
6, Sr><-cl1lc procodu"", tor the reclpl..ntB In
f"!'t./I.hJ1."\hlnt" th..- ~n.J"f" of lT1-'t"1n('\' N""':it.i1hl1-
I
Office of Management and Budget Circular A-110 (7/30/76)
tlons from non -Federal third partles are set
lorth below'
fL. Valuation 01 volunteer .l:Ocrl'iccs.-VoluJ1-
teer services mar be lurnlshed by prolesslon,.}
and technical personnel, consultants, nnd
oth"r skilled nnd unskilled labor, Volunteer
services may be counted as cost shnrlng or
mfltchlng 1! the sen'lee Is nn'lntegral and
necessary part 01 nn approved proi:ram,
(I) Rate~ lor tlOlllll/rer serviee,~,-Rates lor
voluntccr~ Rho\lJd he' consistent with those
paid for slmllnr work In the reeipient.s
organl.,atlon, In those Instnnees In which the
required skIlls arc not. lnund In the recipient
orgnnl.,ntlon, rates should be consistent with
those paid lor slmllnr work In the Inbor mar-
ket In which the recipient competes lor the
kind 01 services In\'olved,
(2) VOl1l7ltcers -:ml'loyed. by olltcr orya7li-
zntio7l.s.-Vlhcn nn employer other than the
recipient furnishes the sen'lees 01 an em-
ployee. these services shnll pc valued at the
employee's regulnr rnte 01 pal' (exclusive 01
Irlnge benefits "nd overhend costs) provided
these servIces are In the same skill tor which
the employee Is normally pnld,
b, Valuation 01 dona/cd. ezpendable per-
sonal proper/y.-Donated, expendnble per-
sonal property Includes such Items as ex-
pendnble equIpment, office supplies. labora-
tor~' ,supplies or workshop and classroom
supplles. Val ue assessed to expendable per-
sonal property Included In the cost or match-
Ing' share should be reasonable and should
not exceed the market value of the property
at the time of the donation.
c. Valuation of donated, noncrpcnd<Iblc
personal properly, buildings, and land or
use thereof.
(I) The method used for chargIng cost
sharing or matching for donated nonex-
pend able personal property, buildings and
land Truly dltrer according to the purpose of
the grant or other agreement as follows:
(a) It the purpose of the grant or other
agreement Is to assIst the recipIent In the
acquisItion of equipment, buildings or land.
the tot...1 value of the donated property ma)'
be claimed as cost sharing or matching.
(b) It the purpose of the agreement Is to
support nctl\"ltles that require the use of
equipment. buildings or land. depreciation
or use charges tor equipment and bUildings
may be made. The full value of equloment or
other capital assets "nd fair rent,,1 char.!!es
tor land mn)' be allowed provided that the
Federal agency has npproved the charges,
(2) The value of donnted property wIll be
determined In accordance "'Ith the usual
accounting policies of the recipient wIth the
follOWing qualifications:
(a) Land and buildinps,-The vnllle of
donated land and buildings mny not..exceed
Its fair market value. at the Ume of donation
to the recipient ItS established by an Inde-
pendent appraiser (e.g.. certl/ied real prop-
erty appraiser or GSA repre'entatives) and
certlfled by a responsible offlclaJ of the
recipIent,
(b) Noncrpcnd.ablc pCT'so1U1.1 pTO'T'CT/p,-
The value of donnted nonexpendable personal
property shnll not exceed the laIr market
value at equipment nnd propert). 01 the snme
age and cOlldltlon at the Urne of donation,
(C) Usc 01 spe.ce,-The vnlue 01 dOllated
space shall nat exceed the Inlr relltal \'al"e
of Comparnhle space n.s established bv nn
Independent apprnlsal of compnr"ble ~pace
and facilities In a privntely-owned bUilding
In the same locality:'
(d) Loaned equipment-The \'nllle of
loaned equipment shall not exceed Its lair
renl.:\l \'nluc.
6, The follo\<"lng requirements pertain to
the recipient's Supporting rccords lor In-
).:Ind con:"rlb\1tton.s frorn non-Fcdrrn.l third
!,'n:-t\~.".
n. Vol11nt(>cr sPT\'IC'cs nlust be' documcnt.N1
allct. to tile extent ICR.,ible, supporled by the
same methods IIsed by the recipient lor It.,
enlployces.
b. The bnsls tor detcrmlning the valuaUon
for personal sr.n"jccs, nlaterlal, cqulprncllt,
buildlllgs and lalld /Illlst be docllmented,
ATTACIIMI:NT F.--{;lRCULAR No, A-IlD
STANDARDS FOR FINANCIAL MANAGEMENT
SYSTEMS
1,11115 attachment prescribes standnrds lor
flnnnclnl lnnnagcrncnL systcrns or recipients.
Federal sponsoring ngellel"" shall not Impose
actc1it.Jonnl stnndnrus 011 recipients unless spe-
clflcally provIded for In tile applicable stn-
tlltes (e,g" the Joint F'lIndlng Simplification
Act. P.L, 93-510) or other attachments to this
clrculnr, However. Federnl spollsorlng agen-
cies arc encournged to make sugl:estlons and
assIst recipients In estballshlng or Improving
/inanclal Illanagement systems when such as.
slstanct' Is needed or requested,
2. Recipients' /innnclal management sys-
tems shall provide lor:
a, Accurate. current and complete dlstlo-
sure ot the financIal results of each fedcrnlly
sponsored project or program In accordance
with lhe reporting requirements set forth In
Att."chment G t.o this circular. \\Then a Fed-
eral sponsoring agency requires reporting on
an accrunl basis, the recipient shall not be
required to estnbllsh an accrual accounting
system but shall develop such accrual data
for Its reports on the basis of an analysis of
the documentation on hand.
b. Records that Identify adequately the
source and Rppllcatlon of funds for ledernll)"
sponsored activities. These records shall con-
tain Information pertaining to Federal
awards, authorlz.atlons. obligations. unobli-
gated balances. assets, outlays, and Income.
c. ElIectlve ::ontrol over and accountabilIty
for all funds. property and other assets. Re-
cipients Shall adequatel)' safeg-uard all such'
assets and shall assure that they are used
solely lor authorlz.ed purposes.
d. Comparison of actual outlays with bud-
get amounts for each grant or other ag-ree-
ment, Whenever approprIate or required by
the Federal sponsorIng agenc)': financial In-
formation should bl! related to performance
and unit cost data,
e, Procedures to mlnlml:ze the time elapsing
between the transfer of funds from the V $,
Treasury and the dIsbursement by the recIp-
Ient. whenever funds are advanced by the
Federal Government. When advances nre
made by a letter-of-credIt method. the recip-
Ient shall make drawdov.-ns ...s close as pos-
sible to the time of making disbursements,
1. Procedures lor determinIng the reason-
ableness, allowablllty and allocability of costs
In accordance with the provisions of the ap-
plicable Federal cost prInciples and the terms
o! the grant or other agreement.
g, ACcounting records that are supported
by source documentation,
h, Examinations In the form of audits or
Internal audits, Such audits shall be made
by qualified Indi\'iduals ,,'ho are sufficiently
Independent of those who autharlz.e the ex-
penditure of Federal funds, to prod lice un-
biased opinions. conclusions or judgments,
They shnll meet the Independcnce criterIa
along the lines ot Chapter 3. Part 3 of the
V,S, General AccountIng Office publication,
Standard. for AudIt of Governmental Organ-
12,allons. Programs. Acti\'ltles and Functions.
l1"1cs~ cxnn'linationz nrc Intended to a......cer-
tnln the etTecll\"eness of the /inanclal man~
a~emcnt syst.elns and int.ernal pro(".cdurcs'
that have been est....bllshed to meet the tcrms
and conditions of the agreement.', It Is not
1ntcndcd t.hnt each :'\(;rccmcnt. awarded to the
rcclp'cnt be cx:tmlncd. Gcncrnlly, c>.:nmlnn-
t.Ion~ 5ho\lld be conducted c.n an orr:nnI7.h.
il(lTl-wld(' l-:n~!<;. 10 i~:-t tl"lc fl~r.:"J.l lllt('r:':'"l~,' f)f
I
A-110:3
/inanelnl transact.lons, fl.S well as compliance
wllll the terms and conditions 01 the Federal
grr.nl.' and other agreements. Such tcsts
would include an appropriate samplIng 01
Federal ngreements, Exnmlnalloll' will be
condllcted wllh reasonable Ireql1ency. on a
continuIng b'lSls or f\t scheduled tnter\'als.
usunlly nnllllally, but not less Irequently than
e\'cry t.....o yenrs. The frequency of these ex.
nnltnnt.lons shall dr-Jlend upon the nnture,
sl.", "nd the complexity of the act\'llty, These
exnmlnatlons do not relieve F'c<:Ieral agencies
of their audit responsibilities, but mny "ffect
the Irequency Rnd scope of such audits,
I. ^ systemntlc method to assure timely and
approprlnte resolutton of audit findings and
recommendattons,
3, Primary recipients shall require subre-
clplenls (I\S de/ined In parngrnph 5 01 the
bnslc circular) to adopl the stnndnrds In
pnragraph 2. "bove except for the require-
ment In subparagraph 2e, regarding the use'
of the letter-of-credit method and that part
01 ,s.ubparagrnph 20., regarding reporting
form. nnd frequencies prescribed In Attfl.ch-
ment, G to thls circular.
ATTACHMENT G,-CmCULAR No. ^-llO
TINANCl.AL RE:PonTIN'C Rf:QUIRf:MENTS
1. This attachment prescrIbes unIform re-
porttng procedures for recipients to: sum-
marize expenditures mnde and Federal funds
unexpended for each award. report the status
of Federal cash advanced. request advnnces
and reImbursement ,,'hen the Jetter-of-credIt
method Is not used; and promulgates stand-
are', forms IncIdent thereto.
2. The follov.-Ing definitions apply for pur-
poses 0/ this attachment:
a, Accrued crpcnditures,-Accrued ex-
penditures are the charges Incurred by the
recipient during a given period requiring the
provision of funds for: (1) goods and other
tangible property receIved; (2) services per-
formed by employees, contractors, subreclpl-
ents. and otber payees. and (3) other
amounts becoming owed under programs for
Vo'hlch no current services or performance Is
required.
b. Accrued inco771c,-Accrued Income Is the
sum of (I) earnlng'S during a given perIod
Irom (I) servlces.performed by the recipi-
ent: and (11) goods and other tlUlglble
property delivered to purchasers; and (2)
amounts becoming owed to the recipient lor
whlC.h no current services or performance ls
required by the recipient.
c. Federal lunds authorized,-Federal
funds authorlz.ed art the total amount of
Federal funds obligated b)' tll"e Federal Gov-
ernment for use by the recipient. This
amount may Include any authorlz.ed carry-
over o! unobligated funds from prior fiscal
yenrs when permitted by law or agency
regulnilon.
d, In-kind con/ributions.-In-klnd con-
tributions are de/ined In Attachment E to
thl~ circular.
e. Oblipa(ions,-Obllgatloru; arc the
amounts of orders plnced. contracts and
{'rants awarded. servlccs received. and siml-
1M transacttons during a given perIod that
v.-ill require pa)'ment by the recipient during
the snme or a luture period,
1. OuUays,-Outlays or expenditures repre-
sent charges made to the project or program,
They mny be reported on a cash or accrual
bnsls. For reports prepared on a cash basis,
outlays arc the sum of aclual cash disburse-
ment" for direct charges for goods and serv-
Ices, the amount of Indirect expense charged.
the \'allle 01 in-kind contributions npplled,
nnd the' amount of ca.sh ndvances. Rnd pa.y.
menL' mnde to subreclpients, For reports pre-
pared on nn accrunl basis. outlays are the
sum of f\Cltln.l ensh d15burscments for direct
(;}):\r)!c~ for (:!oods and :c;.cr\'lccs. the f\mount
()f Inrllr('r: l":':rH'I1S(" tncurrf'd, t.he \'nluc of In-
"
I
Office of Management and Budget Circular A-110 (7/30/76)
lelnd contributions applied, and the net In-
crea,e .lor decrease) In lhe amounts owed by
the recIpient tor good.5 and other property
received. lor servlcee pertormed. by emplo)'-
ees, contractors, subreclplents and other
payees and other amounts becomln!;" owed
under programs tor which no current sen-
Ic"", or pertormance are required.
g. Provram /ncome.-Program Income Is
defined In Attachment 0 ot tble cIrcular. It
may be reported on a c....h or accrual b&9lll.
whichever III used tor reporting outla)'s,
h. UncbHgated balance,-The unobligated
balance Is the portion of the tund.5 author-
Ized by the Federal sponMlrlng agency that
has not been obligated by the recipient and III
determIned by deducting the cumulative
obligations from tbe cumulative fund.5 au-
thorized.
I. Unllqutdated oblfgatlo....,-F'or reports
prepared on a cash'bl\.'lls. unliquidated obli-
gations represent the'amount of obligations
Incurred by the recIpient that hae not been
pt\ld. For reports prepared on an accrued ex-
penditure h&9ls. they represent the amount
ot Obllg1l.tlons Incurred by the recipient for
whlcb an outlay hl\.S not been recorded.
3. Only the tollowlng torms will be au-
thorized tor obtaining financIal Intormatlon
trom recipIents.
a. Fhumcial Status Report (E:z:h/blt 1).
(1) Each Federal sponsoring &gency shall
require recipients to we the standardized
Financial StatuS Report to report the status
or tund.5 tor all nonconstructlon project.s or
programs. The Federal sponsorIng agencIes
may, l1owever, have the option or not re-
qUIring the FInancIal Status ~port when
the Request for Ad"ance or Reimbursement
(paragraph 4a) or ~port ot Federal Cash
TransactIons (paragraph 3b) Is determined
to provIde adequate InformatIon to meet
their need.5. except that a tlnal FInancial
Status Report shall be required at the com-
pletlo~ of the project when the Request for
Advance or ReImbursement form Ie used only
for advances.
(2) The Federal sponsoring agency shall
prescribe whether the report shall be on a
casb or accrual ba.s Is , If the Federal sponsor-
Ing agency requires accrual Information and
the reclplent.s accounting record.5 are not
normally leept on the accrual bas 1.5 , the re-
cipIent shall not be required to convert It.s
accounting system, but ehall develop such
accrual Information throur;h best estimates
based on an analysis ot the cocumentatlon
on hane,
(3) The Federa) sponsoring agency shall
determine the frequencv ot the FInancIal
Status Report lor each 'project or prosram
considering the size and complexlt). ot the
partICUlar project or program. However. the
report shall not be required more frequentl)'
than quarterl)' or less frequently than an-
nuall)' except "-, provIded In subparagrnph
3a (I) above, A flnal report sh..ll be required
at the completion of the agreement,
(4) Federal ~ponsorlnr; agencIes shl\11 re-
qUIre recIpients to submit the FlllAnclal
Status Report (original and no more than
two copies) no ll\ter thon 30 d"l's after the
end of each s~cltled reportln!;" period tor
quarterly Ilnd seml-annul\l reporL', I\nd 90
days tor annual and flnal reports, Extensions
to reportln!;" due dlltes mal' be granted upon
request ot the recIpient,
b, Report 01 Federal Ca,sh Transactions
(Ezhibit 2).
(1) When tunds are advllnced to
reclplenla through lelters of credit or wIth
Treasury checles. the Federal sponsoring
agencies shall require each recipient to "ub-
mlt 1\ Rep:>rt ot Federal Ca.h TranMCtlons,
The Federal sponsorln!; ngency shall u"e this
report to monitor cash advanced to recipIents
and to obtain disbursement Information tor
each agree men t from the reclplen ts,
(2) Federal sponsoring agencies mILl' re-
quire forecasts of Federal cash requirements
In the "~marles" "ectlon ot the report.
(3) When prl\ctlca! and deemed necessary.
the Federal sponsorIng agencle. may require
receipts to report In the "~marks" ~ectlon
the nmount ot cash advances In excess ot
three dILl'S' requirements In the hnnds 01 sub.
recipients and to prOVide short narratIve ex-
planIL~lons 01 actions tILleen by the recipients
to red uce the excess balances,
(4) ~clplents shall be reqUIred to submIt
not m:lre than the original and two copies ot
the Report ot FederRJ Cash Transactions ]5
working days followIng the end ot each
quarter. The Federal sponsoring agencies
may requIre a monthly report from those
recipients receIvIng advances totallng $1
million or more per year.
(5) Federal sponsorIng agencIes mal' waive
the requirement for subml!Slon ot the ~port
ot Federal Cash TransactIons when monthly
advances 10 not exceed $10.000 per recipient,
prOVided that such advancC3 are monitored
through other forms contlllned In_jhls at-
tachment, or It. In the Federal sponsorlng
agenc)"s opinion. the recIpient's accounting
controls are adequate to minImize excessl\'e
Federal Ildvances,
4. Except as noted below, only the tollow-
lng lorms wlll be authorIzed for the reclpl-
en~3 In requesting advances and relmburl'e-
ments.
a, Request lor Advance or Reimbursement
(E:z:hiblt 3).
(1) Each Federal spon!orlng agency shall
adopt the Request lor Advance or ~lmburse-
ment as a standardized form for all noncon-
.!:.ructlon programs when letters-of-credIt or
predetermined advance methods are not used,
Federal sponsoring agencies, however. have
the optIon ot USIng this form for construc-
tion programs In lleu 01 the Outlay Report
and Re::juest for ReImbursement fOT Con-
structIon Programs (subpar&graph 4b).
(2) ReCIpients shall be authorized to sub-
mit requests lor ad\'ances and reimburse-
ments at least monthly when letters-ot-
credl t are not used. Federal sponsoring
"gencles shall not require the subml!slOn ot
more than the orlglnal and t".o copIes 01 the
Request for Ad\'JUlce or ~Imbursement,
_I
A-110:4
b, Outlay report and Tequcst lor reim-
b"rumcnt lor construction program.. (Ex-
hibit 4),
(1) Eneh Federal 5ponwrlng I\geney shILl1
ILdopt the OullIL)' Report ILnd Request tor He-
Imbur.~ement lor Construction Programs as
the standardized tormat to be u~ed for re-
questing reImbursement lor construction
programs, The Federn.l sponsorlr:g ngencles
ma)'. however, hsve the option of substitut-
Ing the Request tor Advance or Reimburse-
ment f'orm (subparagraph 4a) when the
Federal agencIes determine that It provides
aclequnle Inlormntlon to meet their needs,
(2) Recipients shall be authorIzed to sllb-
mlt requests ror reimbursement at least
monthl)' when lelter~-ol-credlt nre not used,
Federal sponsorinG agencies shall not require
more ths.n the original and two copies of the
Outla)' Report and Request lor Reimburse-
ment tor Construction Programs.
5, "''hen the Federal sponsoring "fencle,
need nddltlonal Inlormatlon In using these
torms or mo.re Irequent reports. the tollowlng
shall be observed:
,a, When additional Intormatlon L~ needed
to comply with legislative requIrements.
Federal sponsorIng ngencles sha!l Issue In-
structions to requIre recipients to submit
such Inrormatlon under the "Remarks" sec-
tion ot the report.s.
b, When necessllry to meet specific pro-
gr..m needs Federal sponsoring &gencles shall
submit the proposed reportln,; requirements
to the FinanCial MAnagement Branch. Budget
Review DivIsion. Ollice of Mana!(ement and
Budget for approval prior to su'bmlsslon ot
the reports tor clearan.., under the pro-
visions of OMB Circular No, A-40.
c, When a Federal sponsorIng agency has
determined that a recipIent's accounting sys-
tem does not meet the StlUldllrd.5 for FI-
nanclsl Manageme:l.t contained In Attach-
ment F to thIs cIrcular, additIonal pertinent
InformatIon to turther monItor grants and
other a.greements mn)' be obtained upon
written notice to the recIpient untll such
tlme:l.s the system Is brought up to st.andard,
d, The FederILI sponsoring &gency, In ob-
taIning Intormatlon lIS In paragrILphs a, b
and c above, mus' comply with report clear-
ance requlremer:~s of the Ollice of MallAge-
ment and Budget CIrcular No. A-40, as re-
vised,
6, Feder...! sponsorlnr; agencies hILve t.he
option ot shading out any !lne Item on any
report that Is unnecessllry for declslon-mak-
I ng purposes,
7: Federa] sponsorIng agencle~ should ac-
cept the Identical InformaUon trOTT, the re-
cl>>lents In machine usable tormat ;:". com-
puter printouts In lieu 01 prescribed. formILts,
8, Federal sponsoring agencle;; mILl' pro-
vide com>>uter outputs to reclplent.s "'hen II
will expedIte or contribute to the accuracy
ot reporting,
9, Feder",l sponsoring ILgencles are Iluthor-
Iud to reproduce these forms, The forms for
reproduction purposes can be obtained from
the Olnce ot Man3.bement and Budget,
I
Office of Management and Budget Circular A.110 (7/30/76)
~
:
-'
<
i'
u
u
0_
[1
r
... .,
~ ~
~~o
j!lii
> -
eo
c.a;
~6
II) r:> ~ ~ J
:E .; ~ _
~~[l= ~
G i: 0
:r. ~ ~ w
E Ie ~ ~
~ ~ De
~ . 0
~ 0
-~
~ t:
.
J
:>
"
,.: t;;"
-~ ~
"
~
o
"
o
~ f
~ E
~:; g
".
s~ ;
." 0
. "
~=
o J
~ ~
i ~
i 8
~ ~
~
i:
:
%
u
i
l:
~
~
~
~
~ j i.
~,!! .;
- ~
., ~
~
:;
~
J
"
"
o
>=
~
z
i
o
o
"
"
~
J
:>
"
"
5!
~
~
"
~
l:i
;
~
J
"
:;
s
e
~
~
-'
..
t: ~
o ~
CL i
~] -
~
Cf)~~
:J ~ II
t- ~ i
;: .~ ~
:~ 1
G ~ ~
z f 0
<: ~
z z
~
o
u..
~
r
g
~
i
J
.,;. ~
g 12 0
i-
t: ;;
k ~
~ :;;
G
S
~
i
~
J
o
- ~
s
~
:z:
C
.
i
-'
"'~
... "
0'-
...
....
'-
~
~
~
'-
..,
'-
..:
,I,
'"
~
...
;;
;:
u
'"
....
'"
:z:
o
;:
u
z
~
'"
:E
<
c:
! ~ I
...
...
...
...
...
...
~
r
o
~
~
:>
o
.~
Ci
~
:;
o
1:
~
c.
r
o
~
E t:_
e &. ~
.!: ~ ~
~ ~.~
~ ~ E
t:. :; ~
: ~.~
... "'''''::
..;!z _
~
~
"5
o
~
-."
;; ~
'0 <
E~
~
.,
~ .,11
~~ .Q~~
~- -~ ~ ~
~:- -g-sg
~ .~ ~.. c
i:; ~~~
~ ~.~ ~ I ~ ~
~ l~'" c!2 0
S!~2 il]f,
., :>
,.-
., c.
:; \:l
o ~
~2
"
<
~
'"
:g ~
~
~ ~ 0
~ '5 WI C
~ .:: g ~
~ ~: ~
'0 ~ ~ ~
., 0
~~~?"O
~ "0 e t: C>
_ .. '0 :>>'"
~ ~~I~~
Lo... .... :l ....
I
.1
A-110:5
...
a;
00
o..w
~~
w~
...IIl
<::>
0",
i~
v ~
. ;
~. ~
<(-
....t
c
J
~~
~i
._ 2
"0-
;~..(
"E .
000
.~z
~; ~
"..-'
O"t :;)
,,~u
~~!!
.,~ u
o
,
.,
o
c
w."
z: c
o.
I: "
0.. -
woO
-' E
w.
...<
"
0:
t
;:
a;
"'
u
o
w
'"
c:
o
I:
...
::>
"
W
...J
...
;:
o
z
"
w
::E
"
:z:
o
w
~
ii:
0..
a;
o
o
w
0..
~
'"
o
"'
a;
::>-'
..."
,,-
z!,!
co'"
-'"
",0
. "g ~ 'E
D . E t
5i;:
. a.::o .c
~ E 0 -
"281'.5
1-0_.1:
g;;t:
JI/.._~~
E~g~
o c .,
'0 u ::lI _
. '0 .
it:;2
~ ~ ~;-
I- .c - . Q,
~_:;:C~1_
--:_-;
E~~..E~
~~~~~~
"
c
.2
g 1
w ;
0 "
" 7-
:; l
~ B .
r ~ i
0 ~
s - .
~
z l
~ ~
E ~ ...
z 1
B :>
0 1
" J ..
~ "- :
0 J
" 1
l-
'-:;- ~ 1
~ ~
0 - .
;; 1
;: {
~
0 t
!
, ... ~
~ .,
; ~ "
c c :!- 1
.2 'r
"-
~ 1
~ .$
"- i
Co e
< -;.
'0 ~ :-
~ ,: ~ t
c ~ . , I-
- 0 v
Z ...oS w ~ !Xl
~ . <.. ~ s:
t:....
.; .; ><
~ LlJ
:0 c
c
g <
J
::> t c
;i
I
-I
Office of Management and Budget Circular A-110 (7/30/76)
INSTRUCTIONS
Please type or print leEibl)", Ilems 1. 2, 3, 6, 7, 9, lOd. IDe. 109. 10i, 101, lla. and 12 are sell,explanatory,
specific instructions for other items are aslollows:
,....... Eo'ry
" Ent., the employer Identlnutlon number au1rn.-d by
the U.S. Intern.' Rpvfnue S~rvic.e or nCE (ins1itution)
code. If required by the feder.llponlOn"g aRene)'.
5 This spec. " res.ervPd lor en account number or o1h,.r
identltyl"l num~n thllt may bot u1ilnt'd by the
rec.ipienl.
8 Enter the month, dey. end yur or the be,innln, Ind
endl"a of this prnlrct period. rOf formula ,renh thet
.,r not aw.n::Ied On .. pro,ed basis, show thl Br.nt
pefio<l,
10 The pu~e of vertiCAl columns (e) throuRh (1) II to
provide ',"encial date tor uc:h progrern, function, end
Iletlvity in the budget lIS approved: by the feduellllOn.
sO!lng 'aRene.,.. If additional column, ere needeod, use es
meny addltlonel forms II! nH"ded end Indlc81e paRe
number In sp.ec~ provld~d In upper righl; howev~r. the
tatels of ell programs, functions or activities should be
shCM'n in column (g) of the flnt pere. For e~r.em~nts
perteinlns to s.evtrel t:.tIllOE" of Federel DomnOc
AS$irtance prorrams thet do nol reoQuln , further
tunctionel or ec1lv1ty elesslrlcation brea~dOWT'l, enter
under Columns (a) trH'Ou~h (f) the litle of the prOlram.
For ,rIInt.l or o1her n..sishnce a,r..ments containing
muhiple progrems where one or more. prOGrllms reQuire
e 'urther br~ekdown by 'unctlon or ectlvlty, use a
t.f: twI"te form tor uch prOE'",m shawlnr the epplicable
functions or ectivltin In the separate columns. For
IZrBnts or olher IlSsistence ai:reemenu containins sev.
erel functions or actlvllies which ere funded Irom
s.eYer-a1 programl. prepare' 'Sep.r-ate. 'orm for each
activity or 'unction when requesled by the Federf:
a.ponsoring egency.
lOa Enter the net outley. This .mount should be the same
es the emou"t repone<S In Une 1 De of the lest ~por:..
If there has been an edJustment to the. amount "hown
pnrvk)usty. pleese attach expl.nation. ShO'tlf lero If this
I, the Inhl~1 report, .
lOb Enter the tole I ,roe:s pro~ram outlays (less rebatet,
re1unds. and other diseounU) for this report peri~.
Including dlsbunements of ca.h realized es program
incomf.. For reports tNt ert p,epef'e'd on I c.esh
bui,. outlll~ are Ihe s.um of actual cllsh disburu.
m",':~ for good, .nd t.t"Nice!. Ihe .mount of Indi~
expense chare'ed, the value o! In.kind contributions
applied. end the amoun~ of cash advence! end
P<lyments made to contractors and subgfllnteu. For
reports prC'pa~ on an .ccru~ expend'ilure basis. out.
laY" ere the sum of actual Clsh disbursements. the
.mount or Indirect u.pense incurre~. the value of in.
kind contributions applln:. and Ihe. net Increne (or
dK.ru~e) in the IImounts 0W"e'C by the recipient tor
gOOds and other property re-ceived and tor aervlces
per1orme<: by employees. conlnlcton. .ubE'r.nlees, anG
other payee-s.
/....... E.'....
J Oc [nl.r fhe "nOunl of .11 prOfl'r.", Income r~ellle-d In
thi, period Ihat ;1 re-quir~ ~ 'he 1erm, end con.
dittOns of the f rderal award to b,. Ol"ducted from total
pmll!"C1 cosh. ror reports p'''"fH!'d on I cuh bII,15,
en'Pf Ihe amount ot ce,h incc'rne rf'c!,iye<l durin~ the
rtlportin&: f\f'IIod. For report, prePII,e<I on en accrual
basIS" ente' Ihe amount.ol Income ~arnl"Cl sinCe the
be,innin8 al the reportlnt f1oerlod. W't'tn the lerms or
conditions allow pro~rem Income 10 ~ edd~d to the
latal awud. explain In remarks. Ihe soorCf:, amount
end disposition of the Income.
101 Enhr amounl pertelnl"i to Ih~ non.F'PdUlll shere of
program outleys Included In 1h. IImount ..~n Une t.
10h Enter tolel emount or unliQuldett'd obliglltions lor tl1ls
project or profr.m, includinE unliQuldllt~d obligationl
10 subRranl~el end contractors. UnliQuidele-d obliBll'
tions are:
Cash buh--obll,,,lions Incurred but not _paid;
Accrve-d ex~nditure blllit.--ObliSAlions Incurred but
tor which-an outla)' he, not been ~corded.
00 not include any amounh that have be-en Included
on linn II thrc,Urh ,. On the final n:pon.. line h should
have II Jero belance.
10) [nle, the Federal shere of unliQuldaltd oblifatlons
shOW'" on lint h. The emount lhown on this line should
be the dinerence between the emounts on lines h end l.
JOk Enter the sum of the amounts shown on line'S E end 1.
It the report is final the report should not contain any
unliQulOahod obligaUons.
JDm Enler th. unobllgatPd balllnce of Fede~l rund~. This
amount should be the difference berween lines 10. IInd I.
11 b Enter rate In effect durlns: the. reporting ~r1od.
l1c Enter emount of the base to which the nte was applied.
lId Enter tolal amounl of indirect coC't charged during the
report periOCl.
lie (.nter amount of the Federal share chergt'd during the.
repor,; perlOCl.
It more then one rele was applied dorlng the project
peru, include a separate scheClul~ sho......ine bases
ageinst which thr IndIrect cosl ra'es W~tf: 8Pplied. the
respective Indirec1 rate-s the month. day. and year the
indl~ ral~ we'e. In ef1Kt. amounts of indj~t u.
pt'nn eharFed 10 the project. and th~ Federal share of
indire-ct expense ehe'ied to the pro;~ct to oate.
A-110:6
..
,
I
J
Office of Management and Budget Circular A-110 (7/30/76)
A-110:7
Appro....ed by Office of M.n.R~ment IIn" BUd,et. No. BO-R0182
FEDERAL CASH TRANSACTIONS REPORT 1. rfldenl J.(IOnsoOnt 'iHK'J and or,,,,iUlio",1 .I......"t '0 ~i(~ thi. repor1
is lubrnin.d
(See in..tTlLctions on the bru:k. If report i.. for mor~ than onc pran t or
a...sistance agreement, at/<Jch completed StancUzrd Form r7~-A.)
2. RECIPIENT ORGANIZATION 4. f.d<<.t Inn1 0( 00.- icle.ntitica. 5. AKipi,nl'. KC'OVn' "..",b.r ...
lion "umber i6....lityi'" ftUWlwr
NGme : ~ L.n., of c.udit "umb<< 7. lu1 P.YMMI 'I'OlICft., """"boaof
N.mh".,. Gi,'e total number for this pcriod
ond Strflrt ,
8. P'J'm~"t Vouche" c.udHtod I. 9. l,..sury chee\. rK.incf ( w^-,th,r
J"O'Ur .cc.ounl f:ff J\,()L dcpo.itccJ I
eil." Stole 10. PERIOD COVERED BY THIS REPORT
...d ZIT' Cod.:
3. FEDERAL E~~PLOYER ~ FROM (mo,,'k. cia..-. lfflOr) TO (,"on'.II.. doy )'tar)
IDENTIFICATION NO.
a. Cash on hand beginning of reporting period $
b. Letter of credit withdrawals .
c. Treasury check payments
11. STATUS OF
FEDERAL d. Tc:al receipts (Sum of lines b and c)
CASH e. Total cash available (Sum of lines aftnd d)
f. Gross disbursements
(See specific g. Federal share of program income
instTlLcticm..~
on the back) h. Net disbursements (Line f minus line p)
i. Adjustments of prior periods
j. Cash on hand end of period $
12. THE A VlOUNT SHOWN 13. OTHER INFORMATION
ON LINE llJ. ABOVE.
REPRESENTS CASH RE. a. Interest income $
QUIREMENTS FOR THE
ENSUING
DaV8 b. Advances to subgrantees or subcontractors $
.. .
14. REMARKS (A Itach addi140nal sheets of plain paper. if more space is required)
15.
CERTIFICATION
SIGNA TURE
DATE REPORT SUB~ITTED
I certify to the best of my
knowledge and belief that AUTHORIZED
this report is true in all reo
spects and that all disburse. CERTIFYING
ments have been made for
the purpose and conditions _j OFFICIAL
of the grant or agreement
THIS SPACE FOR AGENCY USE
TYPED OR. PRINTED NAME AND TITLE
(A.uo C<><i.)
TELEPHONE I'
(Nwmb...r)
I
(Lz:hliWw:",)
I
272-101
EXHIBIT 2
STANDARD rORJ.l 272 17-76)
r>r.~riDttd by ONte-a of ..'hnJ'l[~m.nl I'lnd RudQ'tt
I
I
Office of Management llnd Budget Circular A-110 (7/30/76)
A-110:8
INSTRUCTIONS
Ptea,e type or print legibly. Items 1, 2, 8, 9, 10, lId, lIe, llh, and 15 are self explanatory, specific
Instructions for other items are as follows:
Ie-
E71try
3
Enter employer iOentification number assigned by the
U.S. Internlll Revffiue Service or the FICE (institution)
cOOe.
If this report coven more than one gnsnt or other
IIgreement, lellve Items 4 and 5 blank and provide the
information on Standard Form 272-A, Report of Fed.
erlll Cuh Tnsns.actiof\.~ontinu&d; otherwise;
4
Enter Fedensl grant number, agreement number, or
other Identifying numbGn if requested by sponsoring
lI~ncy.
5
This splice r~rved for an Ilccount number or other
Identifying number that may be anillned by the re-
cipient.
6
Ent~ the letter of credit number thllt IIpplles to this
report. If 1111 advances were made by Trellsury check,
enter "NA" for not appliCl!ble and leave items 7 and 8
~nk.
7
Enter the voucher number of the Illst letter-of.credit
payment vol1Cher (Form TUS 5401) that was credited
to your IIccount.
lla
Enter the total amount of Fedensl cash on hand at the
beginning of the reporting period Including all of the
F&deral funds on deposIt, Imprut funds, and unde-
posited Treasury checks.
llb
Enter total amount of Federal funds received through
payment vOl1Ch~ (FC>ml TUS 5401) that were cred-
Ited to yoyr account during the /"&porting period.
11c
En+.r the tota' IImount of all Feder&! funds received
during the reportif\C period through T.reasury ch.cks,
wh&thM ex not d epos.it &d.
111
E~ the ~al F.o.nl cash dllbursements, maM
dourinlt tn. ~ period, melvdlng clIsh received
H ~m inCDn'\C. Disbursements as used here also
locJude t,... amo",n{ o( advanc~ and payments Ies5
rMYnds to subgrentHs or conkactors, the iross
amount 0{ direct ....lanK and ~K, including the
E"try
Item
emplopee's share of benefits If treated as a direct cost,
interdl"partmenti\1 charges for supplies and services.
IInd the amount to which the recipient is entitled for
Indirect costs.
IIi Enter the Fed erll I shllre of program income thllt was
required to be used on the project or program by the
terms of the grant or allr&em.;nt.
11i
Enter the amount of 1111 lldjustments pertaining to prior
periods IIffecting the ending balllnce that have not
been includ-<l in any lines above. Identify each grant or
811re-ernent for which IIdJustment was made, and enter
an explanation for e8ch adjustment under "Remarks."
Use plllln sheets of plIpel'" If .additional space is required.
llj
Enter the total IImount of Fedel1l1 cash on hllnd at the
end of the reporting period. This amount should include
all funds on deposit, imprest funds, and undepo~ted
funds (fine e, less line h, plus or minus line I).
12
Enter the estimated number of days until the cash on
hand, shown on line Ill. will be expended. If more than
three days cash reqirements are on hand, provide an
explanation under "Remarks" liS to why the drllwdown
W!l' made prematurely, or other reasons for the excess
cash. The requirement for the .explanation does not
apply to prescheduled or automatic advances.
l3a
Enter the amount of Interest earned on advances of
Federal ~nds but not remitted to the Federal asency.
It this Includes IIny IImount euned IInd not remitted to
the Federal sponsorintt IIgency for over 60 days, explain
under "Remarks." Do not report Int&l'est earned on
Ddvances to States:.
13b
Enter IImount of advance to secondllry recipients in-
cluded in item 11 h. ..
'\
14
In addition to providing explanlltlons liS required above,
liYC additional explaMtion deemed necess.ary by the
reei~nt IInd for in-~tion required by the Federal
sponsoring agency in compliance with governing legis.
Iaotion. Use plllin sheets of paper If additional spac. is
required.
("
I
.I
Office of Management and Budget Circular A-110 (7/30/76)
A-110:9
....prroved by OHlce or Mln.efl'emf'nt line Budo.'. No.
eO_R016'
1. HDERAL SPONSORING AGENCY l.ND ORGANIZA.
TIONAL ELEMENT TO WHICH TH~ RlPORT IS SUB.
MITTED
3. PERIOD COVEREO BY THIS RrPoRT (A. .h",,'n on SF'
t7f)
FEDERAL CASH TRANSACTIONS REPORT
CONTINUATION
(Thu. f<>rm. u. """,pl".d and .'Lo<hrd to StonMrd F'orm. t7t emlv whrn
rt.pO"rlin.u 'm.O'Tt. thon. ()'T1.I' pra?\' (If' Cl~8i.'tn71.rt aprum.tnt.)
2. RECIPIENT ORGANIZATION (Ci... "n..... onlV "'. .holL'" in it,m. t. SF
171)
fAOM C Mo..Jh. ....,. ",.0..)
I TO (H~rll.. ~u. ",4"1
4. List information belo..... for each grent Or other agreement covered by tnls report. Us.f' addltionel forms if more space is required.
FEDERAL GRANT OR DTNER rDENTlF I R(CIPIENT ACCOUh'T NUh.4B[R I FEOERAL SHARE or NET DISBURSEMENTS
CATION OR OlHEA
IDENTIFYING NUMBER NrT DISBURSEMENTS ((;...., CUMULATlV[
r:5A.owa ,ubdivi.JiMI bv olhtr idmLi. ...I\w...""'t..,. a... r'e"ra... __ N[l DISBURSEMENTS
Iym" "umbtrJ if -tqu.ired bv Ih, C'fl..... .,.,.....,., fOR REPORTING
F <</.....ni Sp""',,"nr.A p,ncv) PERIOD
(n1 (h I (d (d)
$ $
.
.
.
.
I .
.. ...
.,
I
,
I
s. TO! AlS (Should CO'f"'T"fI.Pon.d W1.th Q.P71Cunt.ll ..how" on SF ~7t o..!l 1
foltOlL'I: CO~\l.m.n (cJ tht. 1Ia.n'"..r. Q.$ lint Ilk; coJuTr..n (d) tht .It,," oj lines
J Jh Gnd J II, (If (hI! SF ~7f end cumulative di5bur.J~mC'T1t.s ~hD'W'n 071 1
la...."lt rcp~t. A. !teen I\%pLc.n.at\.o71 (II a.nv d1'6~re~r.A.) I $
212'-201
\$
STANDARD FORM 272-/.. (7.761
P...("rlr..~ ~.'" Of/i.... r-I Mc,.,oC......-.t ~e S..dp..'
Office of Management and
"cular A-110 (7/30/76)
BUdglt
J
Ap~ by Office of Manalement and PAGE O.
REQUEST FOR ADVANCE 8udl~1. No. 8O-ROl83 PAC(I
e. "r._.~..t4k_ 2. BASIS or REQUEST
OR REIMBURSEMENT I. D AOVANCE o REIMBURSE. D CAS"
TYPE 0' W[NT
PAYMENT b. "Z.' fJw ...~&. N.
t $u .....""'IUti01U ()ft bo.ck) AEQUUTEO 0 'IHAl 0 PARTIAL 0 ACCRUAL
J. F[OERAL SPONSORING AG[NCY AHO ~~NllATIOHAl ElEMENT 10 .. [Dr.., GIlANI O. OTHE. 1;" ...~T>J:..Y..ENT .[Qunr-
WHICH THIS REPORT IS $UuunEO IDENTln-IHC HUMBER As.sICH[D HUMBER fOR THIS REQUEST
11'1' nOE....L AG[NCY
L EMPLOYER IOUlTlf'ICAnOM I"~ .ECJ"[NT'S 'CCOUNT NUMor. a. M:RIOO COVERED BY THIS REQUEST
NUMBUI. Ollt IO(HllF"'YIHG HUMBER 'ROM t_,,- 4... r-rJ 10 t_tA.. ..... ...--1
I. RECIPIENT ORGANIZATION 10. 'Ayf[f"'~", ","--II M" H_t M Ii.,"_. u.- t"-I)
N._ , N..... ,
N_'" N_'"
.-4 .'r.<< , ~-'I".-( ,
c..... ,.... C......"'....
-.J %Ir eM. : ..... I/re..&.:
11. COMPUTATION OF AMOUNT OF REIMBURSEMEPfT'S/ADYAHCES REOU E"STt:D ..,
(a) (b) (e)
,
PROGRAMS/FUNCTIONS/ACTIVITIES ~ TOTAL
I. T 0101 Pl'OlI'ram tA. .1 GA")
outleY' to date $ $ $ $
b. LA..: Cumwlettve Pf"OI'nu" Incom.
c. ~-: ~m outleys (Uow . .........
d. ~mate<l ntrt celh ovtiays for advance
perlod
.. ToUl (SM....f MOl. '" d)
t. Non-Federal~,.. of amount on H~ .
I. rede,..' .hare of amount on line I
h. , .-dentl payment. pr....;.av.ty nlquested .
I. ~'Ii~.~ ..- "",unted (L;... V
j. Mwnceo requ;r-.d by 1 C\ month
month. _n F'OQUHtod
by foderal ".ntor ago<>c)'
for u... in m. kin, !>A' 2nd month
Khedvled advancea
3rt! month
12.
AlITRNATl: COMPUTATlOH FOR ADVAHCES ONLY
eo Uti""'led Federal cuh outlay, that will bo med. dun... period covered by tho advar>C9
$
h. Lu,: Estimated balance of Fed.ral cash on hand a. of beginning of advance period
c. Amount reqUeMed (L1v Cl tN"...... I'M b)
n.
s
CUlTIFlCM"ION
SIGN" TUAE or "\/THO"IZED CERTIf'YlHO O'''C'AL
lOA TE: REQUCST
SUBMITTED
I certify that '" th. boo( o! my ""_ad,.
I'nd belie' the data .bow ue COt'red and
tt\.at all outlaY" were mad. in .ccord.~
W'ith the IflInt condrtionl Of othtH" .1,....
"'..... ."d that peym.ent il due and ha, "at
"-n p_a/y _u_ed.
TYr'[O OR. "-'HTEO "AlI( AND nTH
TnL"iOH[
(-~
I Jr.........
(_.~
n.l. "I'K'" for aprcy ....
'_10' EXHIBIT 3
'TAlCo.u.D P"OItIlI T10 (7-76)
~ac'r1b.-d by 0fftcA. of M.n...rne", IInd a~
CIRCULAR 'lO. 1.-110
Federal Grants Mal1aQement Handbook September 1978
A-110:10
,
..
Appendix I
I
.....,,~.
1
,
.I
Office of Management and Budget Circular A-110 (7/30/76)
INSTRUCTIONS
Please type or print legibly. Items I. 3. 5, 9, 10, II c, II e. III, II g, II i. 12 and 13 are sel'.explanatory;
specific instructions for other items are as follows:
Ilrm En.lf"')I
IndiClte whether ,eQuest is prepared on ush or ac'
cruPd e-.penditure basis.. All requests for ad"..nces
shall be prepared on II enh basis.
[nit' the re-denl grant number, or other identifying
number as.signe<l by the 'fed",.1 sponsoring agency. If
the advance or reimbuf'1.ement is lor more then on.
e~nl or other Illrf"emenl, Inurt N/A; then. show the
1I11l,e,atr amounts. On II M'~r.te Iheet. list each
r,ant Of'" .Il'~ment number and the federal share of
outlays made Bg.insl the- g,ant or Ilr~menl.
6 (nler th, emp'oyer identification number enif;nt"d by
the U.S. Internel Rrvenue S.rvice. or the flCE (institu.
tlon) code if ~ue-s1.ed by the Federal .gency.
This ,pllie_ is tnerved tor en account number or other
loentityinc number thet mey ~ assigned by the
re<:ipienl.
8 [nler the month. dey. end yeer tor the beginning end
ending or th~ pe-riod rovere<:! in thil request. II the ,..
QueS1 is tor Iln Ildvence or 'or both Iln advence Ilnd n.
imburs~ment., show Ih. period thai the advance will
cover. If th.. r.quest II tor reimbursement.. show thr
period ior which the reimbunement is requested.
Note: The Fedet'81 soonsoring agenciel haw the option of
rbQuiring re-cipi.-nts to complete iteml 11 or 12. but not
both. Item 12 should be us.ed whe>n only e minimum
amount of intormehon is ne-e<Sed to make en advance
and outlay information conuined In Item 11 cen be
obtained In a timely manner tram other reponl.
11 Th.. purpose of th. \l'Ht~el coIumnl (e). (b). and (c), j,
to provlde .pece tor seper'llte cost breakdowns when a
rro;ect hes be-en planne-d a~ bwd@ete-d by prOlt'llm.
'unction, or activity. If additional columns are neede-d,
Itrm E;"t"'V
USe 8S many addilion.1 forms as nt"'e'ded and indlute
pa,e numMr in space pf'OYided In upper rigtlt I'\ow.
eYer. the summary to\all. 01 all prolr,ms, tunctions..
or Ilctivitiel. should be snown in the! "lOul" column on
the flnt page.
1la Enter in "u of dftlt", the month, dllY. Ilnd year of the
ending of the IlccountinE" f'I'I!riod to whir" this amount
applin. Enter program outlays to datr I "el of retunds.
rebetH. and dlscOl.mh}. in the appropnllte columns.
For reque-sh "repllred on II cash buis. out1ays .rr the
sum of .ctulll calh disborwmenlJ: '04'" Roods and 5-erv.
ic...,. the .mount 01 indirKt e.pense, ch."e<I, the
v.lue of in-kind conlributi~.s. applied. e!nd the Ilmount
of ulh advances and payments made to subcontntc.
ton end subre<:ipi~nh. For ~uests prepered On an
accrued e.ll:pendlture basis, outlays ,are the sum of thr
actual cuh dlsbun.ements. thr amount of Indirect el'
~nses incurred. Ilnd the net fncreas.e (or dt"'Crease) In
the .mounts owoed by the reciptent tor goods end othe-r
pro~rty rece-iye-(j end for 'erv1c~ ~"'ormed by em.
ployees., coott'PIcts. subgntnt~I. and other p.eye-es.
11 b [nhr the cumulatiye ush income re<:elved to date. H
reQue-tu IIr. prepared on II ush bal-il.. For re-qut"Sts
~p.ered on an aec;ru.d expendttun bas.is. enter the
cumulaUve income Nmed to date:. Unde-r etthwr besis,
~"ter only the amount applicable to prognm income
that wes rPQulred to be used tor the project or pro-
.ram by the tema of the fIt'llnl or other egre-rmenl.
l1d Onty when milking requuh 'or edwnce paym..nts.
enler the total estimated .mount 0( cash ouUeys that
Mil be mad. during the period cOYu-e<t by the edv.ne..
13 Complete the certirlc.tion before wbmirting this
request.
..
A-110:11
,
I
-'
Office of Management and Budget Circular A-110 (7/30/76)
Appt'Ov~d by OfficII of Man'lem.l'lt Ind ~AG[ Dr
OUTLA Y REPORT AND REQUEST FOR REIMBURSE. Budgn. No. BQ-ROI81 ,.,,0(3
MOn FOR CONSTRUCTION PROGRAMS 1. n,.( 0' "[QU[ST 2.. "ASIS or A[QUUT
(S", "Ulf"'\o/.('t,MU 0" bnck) 0 rlNAL o ,....'UI...l o C""M o ACC"UAl
J. HO[AAl 'P()fiSOR1NQ AG(~CY ""'0 ORl1A.NllATlON"1... (U"(.N"T TO 4. HO(RAl GAAHT 01'1 011-4(A s.. ",AR1'A.L PAYM[NT AEQUUT "0.
WHICH 1HIS R[PORT IS suelrountO ID(NTlfYINO NuWeUI ASSIGNED
IY '[D(RAl AC(NC,
6. ~~~lBO[Yft[A IO(HTlnCA1'OH IT. .'C'."NT ACCOUNT O. OTHU ""'CD corDUl '" ncl1 M""""
IDlNTlnlNQ HUM8[J1l.
,..ow tN-u.. ~,. .,-.1 10t.....~....,._1
.. k[CI,.U;.tcT O.U1AHIZATIOf04 10. r"yu I"........ -.... ~... -' U~.-.I..... "-'J
,...- , H_ :
H.. ....." 1010.....
..- : ...- :
Cu,. CU..
"..u .wl 51....1 ..J.
rl" C.t.: Z,,. C....:
II. STA TUS OF ruNOS
PR 00 RAMS-FU NCTION s--.o.CTI VI TI [S
CLASSiFiCATION Cd) (b) (e) TOTAl
,,'
a. Adminlstretrve f\1penu $ S $ $
b. Preliminary expenu
c. Lend, ,tructures, nght-or,wllY
d. Architectural engineering beslc 'eet I
.. Other erchltK'turel .ngln~rinl fHI
!. ProJect Inspection 'eon
E. un" development ,
h. ReloclUon expense I
I. Reloeation pllyments to Individuals end I
business.s
J. OemoUtlon and removal .
k. Construction and proje<:t Improvement I
cost
I. E.Quipment
m. Misce-lIaneouJ cost
n. Total cumulAtiye to dale (sum o,'line-s I I
II Ihru m)
o. Deductions tor program income I
~. Net cumulative to date (Line n minus I I
line 0) .
(l. Federal share to date
I
I
I
I
1$
I
I
I
I
I
1$
I
r. Rehabilitation Irants (100% reim.
bursement)
s. Total Federal share ($.um of lines Cl
end r)
t. Federal payments prrviously I"t'.,
Que,ted
u. Amount reQuested for rf'imbursement I s
Is
I
v. Percenlage of physical comple'tion ClI 1
pm;ect D' % % %
10
12. CERTIFICATION SICN...TUAt OF AUlHORlltD CEATlrYlNC lOAn .,,"'OT
orFICIAL IUBMITl[D
I certify th~t 10 the best 01 my knowledge
end belie~ the billod costs or disburse. s. RECIPI[NT
TYP[D OR PRINT[D NA.M[ "'"'0 Tlll( TEL[,.HON[ fA....~.
menls are in accordance with the terms ..._b.. .-4 _,~)
of the project end Ihat the I"t'imbu"ement
rep'esent, Ihe Fede,al share due whlctt SIONATUA[ 0' Al!TMORll[O C[RTlnINC DATI: SIGN(D
h., not been previous Iy reQuesteG and orr ICI"L
that an inspection has botn perlorme-d b. Representativr
end .11 wo.k I, In a eeorda nee with the c~rtifylnE to lint:
llv. I TY.CO O. ..'NTtD NA"" AHD TlTL' T[l[PMDN( tAp_ ,....
term, 0' the eward. .....b~ ~ _~I
-
271 lOl
EXHfBfT~
5TA.NO,lo.RO ron.. 1i1 (7-16'
",,,.".~h..... I" (....~..~. u.....,..............,....c f\unr-o;
A-110:12
. '\
I
-I
Office of Mantlgement and Budget Circular A-110 (7/30/76)
INSTRUCTIONS
Pipe.. IypQ or print 1~ll'lbly. It"",s 3. 4. !l, S. 9. 10, 1 h, IInd Ilv II.... H/f.axplll""IOry; specific inslructions
lor O{h.r Items..,. as tollows:
It.... .......
M.rk ...... .......,.,.,..... holt. tf t~.. reoue34. .. ""~. th.
.~ Wf4.... ......k' ~ the ....1 oo.c. of tM>
---
2 Ihn'w wtt..h.,. alllflOUntJ .,.. ~ en ." ec::erved
IUIlI()4ndtw,. ., ..... ...~...t .........
6 ......, "". .-r~.' kt.ntl~ "umber .....,.fMCf by
the U.S. f"h~ R............ ~.I.,. nel (Nlnhvtton)
ood. ~ .-quen.4 ~ - fo<l....1 -f'C)'J.
T This .~" k ~ Iof' an .c:oount num,*, or eth.-r
kfenttfylna """...,. the( me)' .... ......"..... br t:M
~...t.
11 The .....- ~ _I _m... to, thl'DUlrh tel .. to
",,.,...;(h ..",.c:c ...... ...,.,..,..,. ~ """'hdownc. """'-" .
"~41 p~ h.. "'-n ,.."'.... aM ~., by pro-.
Ira",. ~" et M"ttvttv. tf .,d~~~,.. .~
~ed. uw ., "'.ny addttlonel ten'n& .. ...--ded .rMII
t..db'. ~ ............r ~ ..,.... ~ in ..,..,. ~
~.'. .tn. .......PNlry toN" .r .N p.t'O(I"'rr.. hi....
Mn,. N .~ should t., ~ .,. lM ."tota,-
eorIum,\ eon tn. .rM ,.... All ~ a,. ~... ...
a trumu~ bellk..
1.. ...- ........... _nded "r weh -.. .. _. leea'
_. ...m.1. 01 _Ideo .nd .... _ ..,ml..lotnt....
-,......... ~. .... .meun< of ~ ~
.....,.n .~ by pn:If"'''' ~6on. Nee ~
tM amount .c .,.,..... ....... .... . .-pern. .n..t..
1110 ...... _ ~"Inr "" \he won. 01 -;nc .nd
.~nL Jnekif\( surwys .M ......piL. sjAktnC ..
""I... .nd .. _ wotI< _1M prior II> _I
..,.,~~.
1 h '""' .R ......._ directly ___ ..tttI .... __.
'"'" eo( lend. ......( "rvcw_ eM ....led r\i'ht-of.
_.
I W _ _ _ ... _ eI ...hlt-.nl en&'____
) 1. Em<<.t1'\eor aftIhtt.ctu,..' en~"i ~. Do not
tncluo. -...y .........qts ~ ... II.. d.
111 r_ ",-*",A ...., _ Ieeos 01 ...-_. end
--.
IIr E_ o+c __ __ wtth _ ___ Df
'-<l ........ .... ~ ._ 01 the ...nt iJ lend
~HIt. 'The .~ ,....n.ini"C' k) "nd ~
~ ~ ......o.tatt """'h ,..,.jor a.nctrvctton
~ .... a.dw~ tf'Om tIMe -teeory and entered on
.....1<.
llh lme<- _ ........ _ ....c .. ..-- __
~.~.n<t ".( CD1't3"" ~I"I( ~~
Int: ~ -). Oa _ ;.",IwCl. __ _eel tor
.........ton adtnin,-tmiyw ~ ~ atnO\,lf'llt&
~ be w....dW<CM4 ... ~ _own on a.n. a.
11 j LnMr .... .mount .t ~&o.. permenb me.6e ~ "'.
n=cipi.e-n! k) IIIhspl.&e.d ~"S. lal'TT'K. iM.nir-.-s. con.
cerns, .nd nonpt"OtI( orr8n~on&.
,..... .~
111 [l'tef" ~ ...~.I'in .1I'ld ~ of .rnptoy... of the
fWej~ ..-d ,...,)""M'f11.. to third perty col"ftrfl>cto", c:ti.
fIIIIC:Ijy ~ in pertonninr d~tCW'l Of' r.-m<wel of
aruc:turft ''''"' ~ lAf'ld. M PI"OCM<ls trom 'he
..... 0( ~ Of" ...... ~I of drvC'tu,.. .houkf b4
cntdfted to lhie ac.oount; thoeorPby ,..f\K1inl "eo(
.~n(s. it NqUHwd by the r..cse,...1 68.,....,..
Ilk [...., tho.. amowl'l(s auociMed wtth the .C1uel con.
'IIIIntCtion of, ..cktitk"" \Ie. 0( rntor.tion of a facility.
N.c. 1nc:iuf14 in Ih.. ar1efl1O'Y. the amounh for proj..ct
kn~ ~.. .. ~. l1,.....s. I.Ad..upt"i.
- 1IPtl..
1)1 EM<< 8t'n(M,1ntJ hw ." 8lQ"'Pme..-t, bottl 'hl'd and mov.
abk., lMCN""''' IlIQ"IJ'lflnent u~ tor cons'ruetio", 'or
exAmploe. pem'Yl'MnUy .ttxhed I.ebore'CN)' labln, bu~.
6ft aucho ~ -ra"""- ...OV8b1. dnks. CNtirs., and
~ equipr-.
11", t.M<<.......-.ounb IOf aM Mema no( specltkftlly m.,..
-.... -.
11" Errt.... th4 kltItl' eumw~Uv. _moun( to' dele which
~Id .. the MH'ft of .raoes a tt\ ~h m.
1 Le tnter th. tot.I amount of pmgt'lllm '''com~ applied to
the wrant or c:onlrlld ~.nt ..kcep( tncome In.
........ .,. .... J. kt_nUty ~ . M'PIIt'1l1h IhM"t of p.!!lpet'
the aourc:.s and trP- -' the l.....m..
11, ~.,. tt. I'M( aJl"U~ amount ~ det~ which .houk1
be ItM _mown(. ~ on Nnoe n minus the amount
... Ii.... o.
1~ 11'I'l.... t.... fwden,f .nerw of.... .moont show-n an 1In. p.
11, Enter the atTMiMIAt of rWwliblNbhan .rIlnt peymel"l'tl
......0. to inc:ttvtGuek 'fIiII'hen pro,ram ",islatiot\ providn
100 .......... ~ Ioy tho '0<1....1 ...."C)'.
lit En!... the _ _ eo( F_nl porn-Is P'9"iou.ly
_ If thk "'"" l& _ lor ~I reim.
........-..
1J.III ......... the ~1"It now ~nc rwq~ ...... ~rM'
I'n.-nt. n-. arneun( t.^oukf 1M the lIift...rnc. brt'w..n
th4:- ."."..... -'-' ~ line. a and 1. II din..,.,'1t, ...
~_e_--.
u. To to. ~eC1 Dr .... ~ Dll\clel who iJ r..
~ ... the ~t1on ol .... pn:>gnwT'l. Th. dllte'"
w.hou6d M ,he .-ch..aJ o.c. 'he torm l, aubm;necl '0 the
F,",,--l '_.
12b To bIo ~~<ed by ~ of'r'Ic.i,.,I rep~~"'atl..,..
who " CM"'tHyinc: _ the pe.t"Ca'rl'( of pro;*'C1 complelton
as pt'IN'ided tot' WI VM- .......",. of the ,,,nt or &I~.nt.
A-110:13
'I
I
Office of Management and Budget Circular A-110 (7/30/76)
ATTACHMENT H.-CIRCULAR No. A-110
MONITOR.INC AND RErORTING r~OGRAM
rE:Rf'ORMANCE
I. This ntt.achment sets torth the proce-
dures lor monitoring and reportln,; pro,;ram
pertormanee 01 recipients.
2. RecipIents shall monitor the pertorma:lce
under ,;rants 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 perlormance goals nre bel ng achieved.
This review shnll be made tor ench program.
lunctlon. or nctlvlt.y 01 each ngreement as set
lorth In the approved appllcatlon or award
document.
3. Recipients shall submit a pertormance
report (technlcnl report) tor eneh agreement
that brlefiy presents the lollowlng Intorma-
tlon tor each program. tunctlon. or f\ctlvlty
Involved as prescribed by the Federal spon-
soring agency:
a. A comparison otlLctual accomplishments
wIth the gonls established to.r the period. the
tlndlngs 01 the Investlgnt.<lr. or both, II the
output of progTRms or projects enn be readlly
quantified, such quantItative datIL should
be related to cost data lor computation ot
unit costs.
b. Reasons why established goals were not
met.
c. Other pertinent Inlormatlon Including,
when appropriate. anlLlysls and explanation
01 cost overruns or high unit costs.
, 4. Except as provided In a and b below.
and In subparagraph 3a(l), Attachment G.
recipIents shall submit the performance or
technical reports to Federal sponsoring agen-
cies and the Financial Status Reports cov-
ering the same period In the lrequency estab-
lished by Attachment G 01 this Circular and.
where approprlnte, a final technical or per-
lormance report alter completion 0: the
project on a dnte specified by the Federal
sponsoring agency. The Federal sponsoring
agency shall prescrIbe the trequency with
which the perlormance reports will be sub-
mitted "1th the rcquest tor ad\'ance or reim-
bursement when that lorm Is used In lieu
of the Flnnnclal Sta tus Report. Except as pro-
"Ided lor In paragraph 5 belo,,', performance
reports shall not be required more frequently
than quarterly or less lrcquently than an-
nually. Federal sponsOring agencies may
"'a.lve the requirement lor recipients to sub-
mit perlormance reports with the financial
reports under the lollowlng circumstances:
a. When the recipient Is required t.<l sub-
mit a perlormance report ",'Ith a continua-
tion or renewal appllca.tlon.
b. When the Fedcral sponsoring agency de-
termines that ,on-sIte technical Inspections
..nd certified completIon dp.ta will be sum-
clent to evaluate construction projects.
c. When the Federal sponsoring agency re-
quests annual financial reports on IL fiscal
year basis but It Is necessary t.<l get annual
prcgress reports on a calendar yenr basiS.
5. Bet""een the required pertorman~e re-
porting dates. 'events may occur that have
s!gnlficant Impact upon the project or pro-
.ram. In such Instances. the recipient sh"ll
Inform the FederlLl sponsoring agency as soon
as the lollowlng types of conditions become
knou'n:
a. Problems. del"ys. or adverse conditions
that ",'Ill materlnlly aflect the ability t.<l "t-
taln program objectives. prevent the meet-
Ing of time schedules nnd go"ls, or preclude
the attainment of project work units by es-
t"bllshed time periods. This disclosure sh"ll
be accompanied by a statement of the nctlon
taken. or contempllLted. and nny Federal as-
sls:.ance needed to resolve the sltuntlon.
b. Favorable developments or events thnt
e:1a.bie t1me schedules to be met soon~:" than
anticipated or more work units to be pro-
duced than orlglnRlly projecled.
6. II any pertormance review conducted
by the recipient discloses the need lor change
In the budget estimates 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 agenc)' shnll
make site visits IL5 trequently ILS practicable
to:
a. Review program accomplishments and
management control systems. and
b. Provide such technlcnl aSSistance as
may be required,
8. Federal sponsoring agencies shnll submit
proposed technical nnd pertormance Hports
to the Office 01 Management and Budget tor
npproval In ILccordance wi th the report clear-
ance requlrements ot OMB Circular No. A-40
as re\'!sed.
ATTACHMENT l.-<:mCUI.A.. No. A-IIO
rA\"MENT REQUIREMENTS
1. This atta<:hment esta.bJlshes the re-
quired methods 01 makIng payments to recip-
Ients. These methods will minimIze the tIme
elapSing between the dIsbursement b)' these
recipients and the transter of lunds trom the
United States TrelLsury t.<l these recipients
whether such d'tsbursement occurs prior to
or subsequent t.<l the transler 01 lunds.
2. Payments can be made to reCipients
through a letter-ol-credlt, nn advance by
Treasury check, or a reimbursement b)' Treas-
sury check. The tollowlng definitIons apply
lor the purpose of this attach men t:
a. Lctter-ol-Credit.-A letttr-ol-credlt Is
an Instrument certified by an authorized offi-
cial of a Federal sponsoring agency that au-
thorizes a recipient t.<l draw lunds when
needed trom the Treasury. through" Fed-
eral Reserve bank and the reCipient's com-
mercial bank. In accordnnce With the provi-
sions 01 Treasury Circular No. 1075, as re-
vIsed.
b. Advance by TrcCl5ury clteck.-An ad-
"ance bv Trensury cheCk IS a payment made
by a TrelLSury check to a reclpJeilt upon I ~
request bel ore outlays are made by the
recIpient, or through the use of predeter-
mined payment schedules.
c. Reimbursement by Treasury clteck.-A
reimbursement b)' Treasur)' check Is a Treas-
ury chec~: paId to .. reCipIent upon request
lor relmb"rsement lrom the recIpient,
3. Except tor construction grants and
other construction agreements lor ",'hlch op-
tional plLyment'methods are authorized. as
described In paragraph 5. the letter-ot-credlt
method shall be used by Federal sponsorIng
agencies If all 01 the lollowlng conditIons
exist:
a. It there !s or wUl be a continUing rela-
tionship between a recipIent and a Federal
sponsoring agency lor at least a 12-month
period and the total amount 01 advance pay-
ments expected to be recel"ed within that pe-
riod trom the Federal sponsoring agency Is
5250.000 or more. as prescribed by Treasury
Circular No, 1075. For Joint lunded projects
the Treasury has authorized a dollar criteria
of $120,000. , .
b. if the reCipient has established or dem-
onstrated to the Federal sponsoring ILgency
the Willingness. and ability to maIntain pro-
cedures that ",111 minimize the time e1aps-
In. between the transter 01 lunds and their
disbursement by the recipient,
c. It the reclplent's finanCial m"nngement
s\'stem meets the standards lor lund control
and accountnblllty prescribed In Attachment
F to this Circular. "Stnndnrds lor Flnanclnl
Mnnagement Systems,"
~. The method ot advanCing tunds by
Tren.<urv check shall be used, In nccordnnce
".lth the pro,'lslons 01 Treasury Clrculnr No.
.I
A-110:14
1075. when the recipient meets ILIl ot the re-
quirements specified In parlLgraph 3. above,
except tho~e In subparagraph 3a.
5. The reImbursement by Treasury checl<
method shall be the preterred method II the
recIpient does not meet the reQulremenL5
speclned In subparagraphs 3b and 3c. ILbove.
At the option ot the Federal sponsoring
agenc)'. this method may ILlso be used on any
construction agree men t, or II the major por-
tion ot the proglam Is accomplished through
private mnrket financing or Federal loans.
and the Federnl assistance constitutes a
minor portion of the program. When the re-
Imbursement method Is used. the Federnl
sponsoring a(.:enc)' shall make payment
within thirty dnys aller receipt ot the billing,
unless the billing Is Improper,
6. When the letter-of-credlt procedure Is
used. the recipient shall be Issued one con-
solldnted letter-ot-credlt whenever possible
to cover anticipated cash needs for all grlLnts
and other agreements awarded by the SpOIl-
sorlng agenc)'. LikewIse, to the extent po~sl-
ble when the advance by Treasury check
method 15 used. advnnces should be Clln-
solltlnted (pooled) lor all grants and other
ngreements made by the sponsoring agency
to thnt recipient. ' ,
7. Unless otherwise required by Ill"'. Fed-
ernl sponsoring agencIes shllll not ,,'1Ihhold
paym~nts lor proper charges made by recipi-
ents nt Ilny tlme during the project or pro-
/(rnm period unless (a) a recipient has lalled
to compl)' with the program objectives. nward
conditions. or Federnl reporting require-
ments: or (b) the recIpient Is Indebted t.<l
the United States. and collection ot the In-
debtedness ,,'111 not Impair accomplishment
ot the objectives ot a project or program
sponsored by the United States,
Under such conditions. the sponsoring
agency mn}', upon rensonllble notIce. Intorm
the recipient that pa)'ments wlll not be m&de
lor obligatIons Incurred a!ler a specified dlLt.e
until the conditions nre corrected or the In-
debtedness to the Federal Government Is
IIquldnted.
ATTACHM(;NT J,-<:mCUI.AI\ No. A-IIO
REVISION or TINANCLAL rLANS
1. This attachment sets lorth criteria and
procedures to be tollowed b)' Federal spon-
sorlne ngencles In requiring recipients to re-
port devIations lrom financial plans and to
req uest approvals lor financIal plan re~
visions,
2, The financial plan Is the financial ex-
pression 01 the project or program as ap-
proved durIng the appllcatlon and/o!" ~ward
process. It may Include either 4he Federa~ and.
non-Federal shlLre. or only the Federal share.
depending upon sponsoring agency requlre..-
ments, It should be related to perlormance
for progra.m evaluatJon purposes 'v"henever
appropriate ILnd required by the Federal
sponsoring agency.
3, For nonconstructlon awards. recipients
~hall Immediately request approvals from
Federal sponsorIng agencies when there Is
re!l.son t.<l belle,'e that Within the next seven
dill'S a revision will be necessary lor the
101l0"..lng reasons:
n. Changes In the scope or the object"'e of
the project or probTam.
b. The need for additional Federnl lund-
Ing.
c. The transler of amounts budgeted tcr
Ind Irect costs to absorb Increases Indirect
costs or vice versa. U approval 15 required
by the Feder"l sponsoring agency.
d, The expenditures as require approvn! In
ILccordance ,,'Ith YMC 73-8. "Cost Principles
for Educational Instltutlons." For nIl other
n""nrds, npproval reoulrements lor other
Items 01 expenditures may be Imoosed If they
nre consistent ,,'Ith those In FMC 73-8. No
other requirements lor speclnc Items may be
I
Office of Management and Budget Circular A-110 (7/30/76)
Imposed unless a deviation hru; been ap-
proved by the Office of Man8.{;ement IUld
Budget.
e. Recipients plan to transler lunds allotted
lor training allowances (direct payments to
trainees) to other categorle5 01 expense.
(. None 01 the substantive programmaltc
work under a grant or other agreement may
be subcontracted or trllnsterred without prior
approval 01 the Federal 5ponsorlng agency.
This provision does not apply to the purchase
of supplies. materllll, equipment. or general
support senlces.
5. The Federal spoD.'<or1ng Il{;ency may
al"o. at Its oplton. restrict translers ot lunds
lI.Inong direct cost co.t.esorlcs lor awnrds In
which the Federal shnre exceeds UOO.OOO
when the cumulative amount ot auch traru;-
fers exceeds or Is expeeted to exceed five
percont of !.he tot&.! budget a.s 16.~t o.pproved
b)' the sponsorlns ngency. The same crl\.Crla
shall apply to the cumulaltve 1UD0unt oC
transters among prograoms. lunctlons. and
aoth'ltles when budge\.cd 5epara\.Cly for an
award. except that the Federal sponsorlns
agencj' shnJl pernut no transfer tho.t would
cause an)' FedernJ npproprln.tlon. or part
thereof. to be used for pUIp06C6 other than
thoos Intended.
6. All other changes to nonconstrucllon
budgets. except for the changes described
In paragraph B. belo..... do not require l\p-
provl\!. This Incl udes tbe use of recipient
funds In furtherance of program objectives
over and a.bove the recipient mlnJmum share
Included In the approved budget.
7. For construction awards. recipients
shall request prior approvals promptly lrom
Federal sponsoring 8.{;encles for budget re-
visions wherever:
a:. The revision resul ts from changes In
the scope or the objectlve of the project or
program. and
h. The re\'lslan Increases the budget
amoun ts 01 Federal funds needed to com-
plete the project.
B. When a FedersJ sponsoring agen=y
makes an award that provides support.!or
both oonstructlon and nonconsLructlon work.
the Federal sponsoring agency may require
the recipient to request prior approval from
the Feder&.! sponsoring agency bcCore m~klng
any fund or budget trAnsCers between t~e
two types ot ....ork su;>port.ed.
9. For both construction and nonconstruc-
tlon awards. Federal sponsorlnt: agencies
shAll require recipients to notlly the Fed-
er..l sp:msorlng agency promptly ....henever
the amount of FedenU author1=d Cunds IS
expected to exceed the nee<ls 01 the reclplen t
by m9re than 1,5.000 or [1\'e percent ot the
Federal award. ....hlche\.er Is greater. This
notification wUl not be requ1.red II applica-
tions for additiOnAl fund.Jng are submJtte~
for COnllnulng grants or contracts.
10. When request-Ing a.ppro\'al Cor budget
revisions, reCipients sha.1l use the bUdget
10nns tha.t were used In tbe application
unless a. letter request ...111 suffice.
11. Within 30 c"-Iend:,, d:l\'s from the do.te
of receipt of the request ior budget re'<'l-
slons. Federal sponsoring agencies shall re-
vie.... the request and notify the recipient
whether the bUdget revisions ha'Oe been a.p-
proveQ, It the re\'I"lon Is stili under con-
slderatlon a.t the end ot 30 ""Iendn da~
the Federal sponsonns agency shall lnfor~
the recipient In WTltinr of the date when the
reCIpient may expect the decL.loll.
ATTACHMENT K.--CIRCUUR No. A-110
CLOS~OUT pnocrnunES
1. This o.tta.chment prescr1bcs unt/orm
closeout procedures tor Federal grant.:' and
other agreements ....Ith reCipients.
2. The 101l0wlng definitions sball Ilpply lor
the purp06C of thL. atta.chment:
a. Clo.<eout.-The closeout of .. grant
agreement 11; the proceRS by which.. Federal
sponsor1nt: 8.{;ency detenn.lnes that all ap-
plicable adm1nlslnLtlve a.cUon.s a.nd all re-
quired work of the 8.{;Teement have been
completed by tbe recipient and the Pederal
sponsoring 8.{;eney.
b. Date 01 complction.-The date ot com-
pletion 15 the da~ on whIch &.!I work under
granU; and other 8.{;TeemenU; 18 completed or
the da~ on U,e award document. or any
'supplement or a.mend.ment thereto. on wblch
Peder&.! sponsorship ends.
c. Di.3allowcd co.t'.-Dlsallowed COGts arc
thosc chnrgcs to a gTant or other 8{;reemcnt
that the Fcdernl spoD.o;or.lns a~ency or It..
rcprcsentnllve det.ermlncs to be unallow-
able. In accordance with the applicable Fed-
eral cost principles or other conditions con-
tained tn tbo 8.{;Teements.
3. All Federal sponsorln(; 8.{;enclc... shall es-
tabllsb clO6Cout proce<lures tbat Include the
10110wlng requirements:
a. Upon request, the Pederal sponsoring
a[:ency shllll make prompt payments \.0 a
recipient for allowable reimbursable costs
under the grant or other agTccment bclng
clooc<1 out.
b. The recipient shall lmmedlately refund
any balance of unobligated (unencumbered)
c!l.Sb tha.t tbe Federal sponsoring agency has
advanced or paid and that Is not authorl7.ed
to be retained by the reclplcnt for usc In
otber gTa.nts or other ngTeements.
c. The Fedcral sponsoring agency sball ob-
taln lrom the recipIent within 90 calendar
da ys after the date of complctlon of tbe
agTeement all financIAl. pertormance. and
other reports required as tbe condition of the
agreement. The agency may grant extensions
whcn requested by tbe recipient.
d. Wben authorized by the grant or otber
agreement. tbe Federal sponsoring agency
shall make a settlement for any upward or
downward adjustments to the Federal share
of costs after tbese reports are rccelvcd.
e. The recipient sball account for any prop-
erty a.cqulred wlth- Federal funds. or re-
ceived from tbe Government In accordance
with tbe pro'<'lslons of Attachment N to this
C1.rcular, Property Management Stnndards.
!. In the event a final audit ha.s not been
performed prior \.0 tbe closeout of the gran t
or other agreement. the Federal sponsoring
'11gency sball retain tbe rlgbt to recover an
appropr1ate amount after fully considering
the recommendations on disallowed coots re-
sulting from the final audit.
(. Suspension and \.crmlnatlon procedures
are contained In Attachment L to this C1.r-
cula.r.
ATTACHMENT L.-CIBCULAa No. A-110
SUSPENSION AND TERMINATION PJlOC'&DUJlI:S
1. This attachment prescr1bes unUorm
suspen$lon and termination procedures lor
Federal gTants and other 8.{;Tccments with
re::lplents.
2. The Collowlng definitions sha.ll apply
lcr the purpcse of this attachment:
a. Tcrminalion,-The termination of a
grant or otber agreement mcans the can-
cellation of FederalspoD.'<Orshlp. in whole or
in part. under an agreement at any time
prior to the da~ of completIon.
b. S=pcnsion.-The suspension of a grant
or other agreement Is an action by a Fedcrnl
sponsoring agency that \.cmporarUy sus-
pends Federal sponsorsblp under the gTant
or otber agTee~ent. pending correcll'OC ac-
tion by the recipient or pending a decision
to \.crmlnate the grant or other agreement
by the Feder&.! sponsoring 8.{;eney.
;3. All Federal sponsoring acencles shnll
provide proced UJ"C6 to be followed when a
rectplent ha.s laUed to comply wi th the terms
J
A-110:15
of the grant or other agreement and condi-
tions or standards. When that occurs. the
Fl'der..1 sponsorIng a.gency mal'. on re..son-
able notice to the recIpient, suspen,d the
grant or other agreement, and ....Ilhhold fur-
tiler paymenU;. prohlbll the recipient from
Incurrtllg additIonal obligations of Cunds.
pending corrective l\ctlon bj' the recIpient, or
a decision to termination In a.ccordlUlce ....Ith
paragraph 4, The Federal sponsoring agene)'
sha.1l allow all necessary and proper cosU;
that U,e recipient could not reasonablv avoid
during the period ot suspension provld~d tha.t
they meet the provisions of the applicable
Federal cost princIples.
(. Federal sponsoring agencies shall pro-
vide for the systematic settlement of ter-
mlnnted grants or other agreements Includ-
Ing the followIng:
a.. Termination lOT cause.-The Federal
sponsoring agency mny reserve the right to
\.crmlnate any [:Tant or other agreement In
whole or In pnrt at any time beCore the date
ot completion, whenever It Is determIned that
the recipient has Called to comply wIth the
conditions of the ..greement, The Federal
sponsoring ngency shall promptly notlCy the
recipient In ....rltlng of the determination and
tbe reasons for the termination. together
,,'Ith the elTectlve dnte. PaymenLs made to
recipients or rc<:overles by the Federal spon-
soring agencies under grants or other agree-
ments termlnnted for cause :;hnll be In ac-
cordance with the legal rights and liabilities
ot the parties.
b. Tenn;1l4tion lOT convenic71ec.-The Fed-
eral sponsoring agency or recipient mal' ter-
mlna~ grants and other agreements In whole
or In part ....hen both parties agree that the
continuation of the project would not pro-
duce beneficIal results commensurate wIth
the further expendIture oC funds. The two
parlles shall agree upon the termination con-
dItions. Including the elTectlve dR.te and. in
the case of partial terminations, the portion
to be terminate<!. The recIpient shall not
Incur ne.... obligations for the terminated por-
lion atter the elYectl\'e date. and shall can-
cel as many outstanding obligations as POE-
sible, The Federal sponsoring agency shall
allow full credit \.0 the recipient for the
Federal share of the noncancellable obliga-
tions. properly Incurred by the recipient prior
to t.erm1nat.1on.
ATTACHMENT M.-CIRCULA" No. A-I10
STANDARD T'ORM FOR APPLiINC FOR
FEDERAL ASSISTANCE
1. This atta.chment ",romulg"tes a stand-
ard form (SF 424) to be use<! by public and
'prlvate tnstltutlolllS 01 higher education,
public and prIvate hospItals and other quasl-
public and private nonproftt organizations as
a f..ce sheet Cor ap?lIcatlons when applying
for Federal grants under programs covered
by Part I. Attachment A. OMB Crlcular No.
A-95. In a.ddltlon, agencies are parllcularly
encouraged \.0 etxend the use oC SF 424 to
common programs 'Il.1th State and local gO\'-
ernments where this form Is now required by
FMC 74-7.
2. The SF 42( may a.lso be llsed. on an op-
tIonal basis. to fulftll the reqll!rements ot
OMB Circular A-95 for a. notlflcatlon oC In-
\.cnt, from applicant to clearInghouses, that
F'cderal assistance "'111 be applied Cor. Local
or State clearinghouse procedures wlll govern
the use of the form lor this purpose.
3. The standard lorm ""111 also be used lJy
Federal agencies to report to the clearlng-
houscs on major actions taken on applica-
tions re\'lewed by clearinghouses In accord-
ance ....Ith OMB Circular A-95, and to notlly
Statcs ot grants-In-aid awarded In accord-
ance ....,th Treasury Circular 1082.
\
I
,
- It
Office of Management and Budget Circular A-110 (7/30/76)
A-110:16
OMB ....pp..o"., No. ~rll
FEDERAL ASSISTANCE L ""'I'll. .. If\IW 8ER 3. STAT[ .. WVt<8[R
~UCH<.-
CANT'S nON
I. TYPE o I'REAPl'lICATlON APPlI- .. DA1t 10 EKTl- h. DArt r_. ........k oIay
Of eAT lOtC T_ ......... .... P'I[/\
ACTION o 1tPl"llC'-TlO/'I 19 ASSIGNEO 19
(M_."" o NOTIfICATlOfC Of IKrOH ('()pt.) z-,..
,.... ,.riot4
.-1 o REI'ORT Of rEOuw. ACTION 1910...
4. LEGAL ....PpLICANT /RECIPIENT 5. H.D!:RAL ~MPLOyr;1l toncnPICATlON NO.
.. k>plic.anlll..... :
h. Orllniuliofl U,,1t : lI. I I I- 1 I I I
c. SlrNl/P.O. B<u PRO. .. NUlIOER
d. City GRAM b. TInE
: .. eo...ty ;
( fro",
f. S...... : I. liP Codo: rod...aJ
b. e..'lnl POI'>Of\ (No.... OolooJo" I
.. .. ....,.k..... "'..) ..
~ 7. TITLE AND DESCRlnlON OF APPlICANrl PROJlCT a. TYPE Of ,..,.PLICAN'f /RECIr'IENT
~ "- Steh K-Goon...'lly J.cII.... ^-
B-1"'tnll\4 ..- J- Hirh.r lduc.alionl'i tM1ltution
.. C-Subltat. ~ Indi." Tribe
~ Dlrtrict ~h. (1I".<1f"l:
D-Goun.ty
E-Clty
~ f- $doool Dlrtrld
~ ~r:tl~ ...--- &...t.K .J"r""ft,..no&e NUn" 0
~ TYPE OT M6ISTANCE
......t&ulc c.,..t 0.-..,...",.....
! 6-lu~h....tJll tnft( '-OIh., 6Mtrr a.,.~ IT]
g t-lM" mor. !.'CA-r(.)
10. AREA Of PROJI!CT IMPACT (No,...., rrf etHu. .CJotH'ttiH. H. ESTI"b...-rM\m- 12. TYPE Of A"PUCATION
5"'1400. ./.4.) BER l' 01'11 ,I.-H rw t-A....i'~ (-A.Mr.....-n\allon
BVlUlTING 1J....Il. "..... I O-CCUlti.."",UNI 1.,......0
Eftt.,.. ."pro~t.
U. P~EO ~UNOING 1-4. CONCnESSfONAL DISTRtCTI 01': 15. TYPE Of CHANGE CTfff' Jle .... JJ.)
S .. 'ltOleeT A-Il'lt"'... t.oltl" F-{)!het (Sp.ol/y):
.. FIDERfIL .00 .. AP'UDAHI' 5-Oect..... D ..III"
A1"UCAKT I t-hu:,..." [)u,..t~
b. .00 O-oac.t..... O.,..Uoc
lfi. PROJECT START I H. I"nOJECT [~o<.ol\.ti..
a. nATE .00
lMTt 1_. -..u. 0.... DURATION Z"w-r appro- U I~I
d. lOCAl.. .00 19 AI...."" ".no...... wtln(.)
.. OTHER .00 11- Enl_TKO OATt: TO 7_.. ....,...... dDy 19. EXISTING PEOERAL IDENTIFICATION NUMBER
BE SU&MlrrEO TO
l. TOTAl. S .00 fEDER....l .-.GENCY ~ 19
2:Q. fEDERAL AGENCY TO RECEIVE REQUEST (^'_ Cu,.. /I....... Ul"-o.J 21. REMARKS ADDED
o '1'.. o No
22. t. 1. th. tint .,( rrry knowled,. uu! ~.et'. ~. H' ....,....cn4 br 0....8 Circular "'-95 U\n .ttT'tIc..tioa ... ~r"t<. PUrMJ'l'It kl ill' N" r.. R_~'f'\.I:.
~ d.ta j, O\i. ~~ic.liOl'l/lppliuUOA .n .trwcticwu U......ln. to approQril" .1"rl"I~""" ."d .It ,..po"'''' .,.. .~cJuc; . J><>"U' .,~
~ THE 1<.. ... corrKt. th. doeum...t h.. -.
APPLICANT .vlr .uthoriled Dr I'" rOV'eOl ill[ - M 0 0
CERTIf'IES th. aroJiunt ."d tit. IPQliuai wltl ~ II)
E : THAT ~ wHh Uu ,tta eMC ....,.. Aoni$ U' u.. eut.... 12I 8 0
11 an.. M. 'PPlVV14. 0
131
~ I ~~"'~'N'i .. TYrED /VJoIf AHO TrlU ~. IIIUUT\JRE L DATE S la Iff.[) ,
y_. -........ dDy.
t I REPRE. 19
t: SENTATlVE 1
~. AQf,NCY MAME 25. APPLICA. 1'__ -""" ...y
TION
RECEIVED 19
26. ORGANIZATIONo'J.. UNIT 17. ADMINISTAATlVE OffiCE 2f.. ~EOERAL APPLICATION
! 10ENTlFICATlON
i 29. ACORESI 1)0. fEDERAL OF:ANT
~ IOENTlFlCA TION
~ 31. ACTION 'TAKEN I 3L J'UNO!N<; I )'- ...... .... olaf! ).4. y_.. ~ ..."
r 0 AWAAOED I .. ~!D[IW. I S I'T ARTlNG
.. .00 n. M:TION OATE ~ 19 DATE 19
.. 0 ~. I:EJ1CTEO v ~TM:T fOil "COITIONAL Ifofrc)tlhl.... 3~ r... _.....u. Uy
Q h. AP ,'Uc;AHT .00
J .ON CH&'ffIW o-J .....~~ "'.."'...,.) ENOINC
o a. IlrTVRlIliD I'O~ c. Sl^T[ .00 DATE 19
AM EHDtoIDfT C. lOMe .DO 37. REMARKS ADDEO
~ o C. OEf1!R!lE:O .. orm" I
Ei .00
:t o .. WITHDRAw!( l. TOT ItL I s .00 o Y.. 01'10
3a. I" I' b~lnr ....... .m... ...,. ...........u ,-- I"". d.rinr....._ --- _. h. '(DERItL ...eEHer ~9' OFfICIItL
FEDERAL AGEI'fCY .id.,,,,:. II """ror" ....:-onw II 0.. .MI.,. ................. .t P..n 1.. OW6 Cl,~ubl A-G&. (NIl"u ....d ....wpAotw .-.0.)
fit .... ~. ..,. .. ~ ..0..
.0..-95 ACnON
..._. ....... ~........ ............... ...., .....,...,.. , " /"I.. ""1
"
I
I
Office of Management and Budget Circular A-110 (7/30/76)
A-110:17
SECllOH IV-REMAAKS (Pleau referenu tM proper item ,,,"n.bff frcm\ Suticnu I, Il (W Ill, if a1'1'~/.$)
.. '\
STANDARD FORM 424 rAGE 2 (10-7::1
I
]
Office of Management and Budget Circular A-110 (7/30/76)
A-110:18
GENERAL INSTRUCTIONS
This is a multi-purpose standard form. First, it will be used by applicants as a required faceshect 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).
^PPUCMIT PROCEDlifiES FOR SEGnON I
Applicant will complete all items in Section I. If an Item is not appliceble, write "NA". If additional space is needed, insert
an asterisk ....., and use the remarks 5CCtion on the beck of the fonn. An explanation follows for &bCh item:
Item
2a.
2b.
3a.
3b.
4&-4h.
5.
68.
6b.
7.
8.
9.
1.
Mark appropriote box.. Prc-appfk:lltlQn and appllce-
tion guidance is in FMC 74-7 and Federlll agency
program instructiorll>. Notlfic>ltion of intent RUid-
ance is in Circular A-95 procedures from c1ear-
inghoo~. Applicant will not use "Report of Federal
Action" box.
^ppllcant's own control number, If deslred_
Date SectIon I is prcpttred.
Number aSGlgned by State dOllringhouse. or If dele-
gated by State, by areawide clearinghouse. All re-
QUests to Fedel"8lagencies must contDin this ldenti.
fier if the prDf(rlIm is covered by Circular ~ and
rcquire<l by applicable. State/areawide clearine-
house procedu~. If in doubt. consult your clear.
inghouse.
Dz:te applicant notJOed of clCllringhouse ld:lf1tificr.
Legal name of appllcznt/reclplent, name of primary
organizational unit "tJich will UndCrtllM the assist-
ance activity, comp:::-te address of applicent, and
name and tolephone number of person who cen pr0-
vide further infonnation about this reqlleSt..
Employer identlficetion number of applicant as as.
signed by Internal Revonue Servlce_
Use Cabllog of Federal Domestic Assistance num-
ber assigned to progrnm under which aS3istance is
"'Quested. If morc than one progrllm (e.g., }oint.
funding) write "multiple" and explain in remaoo.
If unknown. cite Public Law ex U.S. Code.
Progrllm title from Fed 001 I Cl:talog. Abbnrvilrte If
necessary .
Brief title and appropriate description of project.
For notificz:tion of intent, continue in remarks sec-
tion if necessary to convey proper description.
Mostly l'elf-<:xplanatory. "City" includes town, toml-
ship or other municipality.
Check the tyPll(s) of assimnce "'Qu~ed_ Th1l
definitions of the tenns are:
A.. ~sic Grant. Art original request for Federal
funds. This would not include any contribution
provided under a supplemental grllnt.
B. Supplemental Grant. ^ request to Increase a
basic grant in certain cas~ whel"8 the eligible
applicant cennot supply the "'Quired matching
share of the basic Federal program (e.g_, gTllnts
awarded by the Appalachian Regional Commis-
sion to provide the applicent e matching shllre).
C. Loan. Self explanotory.
'tam
10.
D. Insurllnce_ Self expltlnatory.
E. Other. Explain on rcffi"arks page.
GoYemmenbsl'. unit where ltignificant end meaning-
ful imp&ct could be observed. list only largest unit
or units affected. such ItS State, c:ourrty, or dty. If
entire unit affected, list It nrther thlln wbunlts.
Estimated numbef" of persons directly benefiting
from project.
Use appropriate code J.etter. Definitions ere:
^- New. ^ submittal tor the firR time for a new
project.
11.
12.
13.
B. Renewal. An extension for an additional funding/
budget period tor a project having no projected
completion date, but for wtJlch Federal support
must be "'"~ each year.
C. Revision. ^ modfficetion to project neture or
scope which mil')' result i" funding change (in.
crease or decnlllse)_
D. Continu8tion. An extension tor an ZKldltlonal
funding/budect period for a pro~ the agency
initially agreed to fund for a definite number of
>,,"f'S.
E. Augmentation. ^ rnquircment for additional
funds for a project previously awarded funds in
the same funding/budget period. Project nature
and scope unchllnged_
Amount requested or to be contributed during ,the
first funding/budget period by each t:ontriblrtbr.
Value of in-kind contributions will be Included. If
the action is a change in dollar amount of an exist-
ing grant (a revision or augmentation), indicate
only the amount of the change. For decreases en.
close the amount in parenth~. If both basic and
SoU pplem'enta I amounts are included, breakout in
remaoo. For multiple proernm funding, use totals
and show prognlm breakouts in remarks. Item defi.
nitions: 13a, amount requested:tram Federal Gov.
ernment; 13b. amount applicant will contribute;
13c. amount from State, if applicllnt is not a State;
13d, amount from local gCNemment. if applicant is
not a local gOV'ernment 13e, amount from any other
sources, explain in remarks.
l4a_
l4b.
~ explanatory.
The district(s) when! most of actual work will be
accomplished_ If city-wide or State-wide, covering
several districb, write .'city-wlde" or ..State-wide."
Complete only for revisions [Item 12c), or augmen.
tations (item 12e)_
15.
STf\NDARD FORM 424 PAGE 3 (10-75)
I
J
Office of Management and Budget Circular A-110 (7/30/76)
A-110:19
Item
15.
17.
lB.
Approximate date projt"Ct expected to beE'in (usually
lluocilltKl with estimated date of availability of
funding).
Estimated number of months to complete project
lifter Federal funds are Ilvailable.
Estimated date preapplic.etlon/appllcation will be
submitted to Federal agoncy If this project requires
clellringhouse rrrview. If review not reQuired, this
date would usulllly be s.eme os dllle in Item 2b.
Item
19.
Existing Federal Identification number If this II not
11 new roquest and directly relates to a previous
Federal action. Otherwise write "NA".
20.
IndicB'te Federal Ilgancy to which thiS request is
Ilddressed. Street Ilddress not required, but do use
ZIP.
21.
Check Ilppropriate ty,x as to whether Section IV of
form contains rem.11<S and/or additional remarks
are attachod.
APPLICANT PROCEDURES FOR SECTION II
Ust clcaringhousM to which submitted Ilnd show
In llppropriate bloc~ the sllltus of their responses.
For more then three cloarlnghouses, continue In
rtlmarks sltCtion. All written comments submitted
by or through clearinghouses must be llttached.
Name nnd title of lluthorized rcpresent.etive of leglll
llpplic.ent.
Applicants will lllways complete Items 23a, 23b, and 23c. If clearinbhouse review Is required, Item 22b must be fully com.
pleted. An explonotion follOWll for each item:
Item
23b.
Self explanatory.
23c.
Self explanatory.
Item
22b.
23a.
Nofe:
AppUcon: completes only Sections I and II. S&ction
III is compleled by Federal allencies.
FEDERAL AGENCY PROCEDURES FOR SECTION III
32.
Executive department or Independent Ilgency hllvlnll
program lldministra~ion responsibility.
Self explanatory.
Primary ol'lianizatlonal unit below department level
having direct program management re5ponslbillty.
enTice directly monitoring the progrnm.
U~ to Identify non-award actions where Federal
grant identifier in item 30 Is not applicable or will
not suffice.
Complete add~ of adminlslering office shown in
Item 26.
Use to identify award actions where different from
Federal applicotion identifier In item 2B.
~If explanotory. Use remarks section to amplify
where appropriate.
Amount to be contributed during the first funding!
budect period by each contributor. Value of in.kind
contributions will be included. If the action is a
change in dollar amount of an existing grant (a revi.
sion or aUbmentalion), indicate only the amount of
change. For decrease$, enclose the amount in pa.
rentheses. It both basic and supplemental amounts
are included, breakout in remarks. For mullip~ pro.
grom funding, use tote Is and show program breok. .
outs in remarks. Item definitions: 32a, amount
awarded by Federal Governmcnt; 32b, amount ap'
plicant will contribute; 32c, amount from State, if
applicant is not a State; 32d, amount from local
governmc:'lt if applicant is not a local government;
32e. amount from any othe<' sourc~. explain in
remarks.
If llppUcant.supplied information in SltCtions I and II needs no updating or adjustment to flt the final Federal Ilctlon, the
Federal agency will complete Section III only. An explanation. for each Item follows:
Item
24.
25.
26.
27.
28.
2'9.
30.
31.
~.
34.
Dete i!ctlon was taken on this request.
Dete funds will become aVllileble.
Item
35.
Name and telephone no. of agency person who Clln
provide more information regarding this o ssist.ence.
Date etter which funds will no longer be aVllilable.
Check appropriate box as to whether Section IV of
form contains Federal remar~ and/or attachment
of additional remllr~.
For use with A-95 Ilction notices only. Name and
telephone of person who can assure that appropri.
ate A-95 action hilS been taken--'If same as person
shown in Item 35, write "same". If not applicable,
write "NA".
35.
37.
38.
Federal Agency Procedures-special considerations
A. Treasury Circular 1082 compliance. Fe4eral agehcy will
assure proper completion of Sections I and III. If Sectioil I
is being completed by Federal agency, all applicable items
must be filled in. Addresses of State Information Recep.
tion Agencies (SCIRA's) are provided by Treasury Depart.
ment to each agency. This form replaces SF 240, which
will no longer be us.eO.
S. OMS Circulllr A-95 compfillnce. Federal llgency will as.
sure proper completion of Sections I; II, and III. This form
is required for notifying all reviewing clearinghouses of
major actions on all programs reviewed under 1,-95.
Addresses 01 State and areawide clearinghouses art pro.
vided by OMB to each agency. Substantive differences
~tween applicant's reqvest and/or clearinghouse recom.
mendations. ond the project as finally awarded will be
explained in 1,-95 notifications to cle:lringhouses.
C. Special note. In most, but not ali S;des, the 1,-95 State
clearinghouse ond the (TC 1082' SCIRA ere the same
office. I n such cases. the A-95 Bwud notice to the Stal-e
clearinghouse will fulfill the TC 10B2 Ilward n<:>tice reo
quirement to the State SCIRA. Duplicate notification
should be avoided.
STANDARD FornI. 424 PAGE 4 (10-75)
J
Office of Management and Budget Circular A-110 (7/30/76)
. ATTACHMJ:NT N.--CIRCl1LAR No. 1.-110
PROPERTY MANAGEMr.NT STANOARUS
I. This attachment prescribrs uniform
standRrds go\'ernlng manngement of prop-
erty lurnlshed by the FederRl Go\'ernrnellt or
whose cost was chlU'ged to a proJe<:t sup-
ported by a FederRl grallt or other "Feement.
FederRl sponsoring agencies shnll require re-
Cipients to observe these standnrds under
grants and other a!;Teements and shall not
Impose Rddltlonal requirements unless spe-
clllcnlly required .by Federal law. The reCipi-
ent may use Its own property man(>gement
stnndards and procedures provided It observes
the pro\'lslol1s 01 this aLLnchment. This nt-
tnchment also nppUes to subreclplents ILS
rclerred to In pamgrnph 5 of the blLSlc cir-
cular.
2. The 1011 owing deOnltlons npply lor the
purpose 01 this attachment:
a. Real propcrty.--<'Ii-Cnl .property men.ns
lRnd. Including land Improvements. struc-
tures nnd appurtenlUlces thereto. but ex-
cluding movablo mnchlneT')' and equipment.
b. Personal property.-Per.;onal property
ot any kind except real property. It mny be
tanglble-hnvlng ph)'slcal existence. or Intan-
glble-ha\'lng no physical existence, such &s
patents, Invenllons and copyrights.
c. Nonexpendable pcrson.al propcrty.-Non-
expendable personal property melUlS tnnglble
personal property hM'lng a usetlll lite 01
more than one year and an acquisition cost
of $300 or more per unIt exempt that reclp-
len16 subject to Cost Accountln& Standards
Board regulations may use the CASB stnnd-
ard of '..500 per unit and useful Ille of two
years. A recipIent may use Its own definItIon
of nonexpendable personal property provided
that the detl.nltlon would at leILSt Include all
tangible personal property as defined above.
d. Expcnc/.ablc personal property.-Expend-
able per.;onal property relers to all tnnglble
personal propert)' other than nonexpendable
property.
e. Excess propcrty.-Excess property means
property under the con trol 01 any Federal
agency that, as determlDed by the hend.
thereol, Is no longer required lor Its needs
or the discharge 01 Its responslbllltles.
!. A.cquisition cost 0/ purchased nonc.:z:-
pendable personal pr<>pcTt.v.-Acqulsltlon cost
01 an Item 01 purchlLSed nonexpendable per-
sonal propert)' means the net InvoIce unit
price 01 the property Including the cost of
modlficRtlons. atlachmen ts. accessories. or
auxUlnr)' f1pparatus necessary to mnke the
property usnblC' lor thC' purpose lor which It
WILS acquired. Other charges such as the cost
of Installation. transportatIon. taxes. duty
or protectIve In-transit Insurance. shall be
Included'or excluded Irom the unlL acquIsi-
tIon cost In accordance wlLh the reclplent.s
regular accountIng practices.
g. E:rcmpt pr<>pcrty.-Exempt property
means tangible personal propcrty acquIred In
whole or In 'part wIth Federal lunds. and
title to whIch Ls vested In the recIpient with-
out lurther ohllgntlon to the Federal Govern-
ment except as provided In subparngraph 6a
beloVo'. Such UncondItional vestln!; or title
wUJ be p\lrsul\nL to an)' Fedeml legIslation
thnt pro\'ldes the Federl\l sponsorlnl; agenc)'
With ndequate authorIty.
3. Real property.-Each Federal spor-sorlng
a&enc)' shnll prescrIbe requirements for re-
CIpIents conCernIng the use and dispOSitIon
of .real propert)' acquired partl)' or wholly
unoe" grnnts or other agreements. Unless
otherwi$e pro\'lded by statute. such rqulre-
rnC-J1ts. as R n1JninHJln, shall ("Onl.nl~ 1he
:"llo.'lll>::
a. TItle La real propert\. shnll vest In the
recipIent subject to the ~ondltlon that the
recipient shall Use the renl property lor the
authnr12ed purpose of the proJect.'ns long as
It Is needed.
b. The recipient shall obtaIn approval by
the f'ederal sponsorlnE; ~ency lor the use or
real property In other projects when the re-
cipient det.ermlnes that LLe properly Is no
lon!:er needed lor the purpose ot the orl(:ln..1
project. Use In other projects sh..1l ue Ilmltcd
to th""e under other tederoJly sponsored proJ-
ects (I.e.. grant.~ or other fL/:reements) or pro-
grams that have purposes consl~tent wlUI
those author17.cd lor support by the f'c<lernl
sponsorIng "i'ency.
c. When the real property Is no lon,:er
needed as provIded In a and b "uove. the
recIpient shnll request disposition Instruc-
tions lrom the Federal sf>Onsorlnr. ar.ency or
Jts ~ucccs~r Federal ::;J>on~()rlllr. n,~cr1C'Y. The
I'ederal sponsoring agency sh..1l obscrve the
tollowln& rules In the dlsf>Osltlon Instruc-
tlons:
(I) The recipIent mny be pcrmltt.e<l to re-
tain 1I tie &Iter It compensates the Pederal
Government In an amount comput.ed by ap-
plying tbe Federal percentnge or partIcipa-
tion In the cost 01 the orl!;'lnal project to the
lair mILrket value of the property.
(2) The recipient mILY be directed to sell
the property under rruldellnes pro\'lded by
the Federal sponsorIng a&ency and pay the
Fe:!era! Government an amount comput.e<l
by applying the FederoJ percentage o[ par-
ticlpntlon In the cost of the orl(;1nal project
\.0 the proceeds Irom 6ale (a[t.er deducting
actual and reasonable sclllng and flx-up ex-
penses, It any, Irom tbe snIes proccc<1.s).
When the recIpient is authorl,...ed or required
to sell the property, proper &lUes procedures
shall be established that provIde lor competi-
tIon to the extent practIcable and result In
the highest possible return.
(3) The recipient may be dlrect.e<l to trans-
fer title to the property to tbe Federal Gov-
ernment provIded that In such cascs the
recipient shoJI be entitled to compensation
comput.cd by applying the reclplent's per-
centage o[ participation In the cost of tbe
program or project to the current foJr mnrket
value o[ the property.
~. Fedcraly-own.cd non.czpendabl<: per30nat
propcrty.-Tltle to ledernlly-owned property
remains vcst.ed In the Fe:1eral Government.
Recipients shall submit anounlly an Inven-
tory IlstlDg 01 ledernlly-owned property In
theIr custody La the Federal sponsorIng
agency. Upon completion or tbe agT<>ement
or when the property Is no longer needed,
the recipient shall report the property to
the Federal' sponsorIng agency lor lurtber
agency utI1l7.ntlon.
It the Federal sponsorIng agency has no
lurther need [or the property. It shall be
declare:! excess and report.cd to the GeneroJ
Services AdmJnlstrtlon. ApproprIate disposi-
tion Instructions "'111 be Issued to the re-
cIpient alt.cr completion of the FederoJ
agenc)' revIew.
5. Exempt proper-ty.-When statutory au-
thorIty eXists. (e.g., P.L. 8:>-93~. 42 U..s.C.
1892) title to nonexpendable personal prop-
crt). acquire:! ...'lLh project lunds. shall be
l'este:1 In the recipIent upon acquisitIon un-
le"s I t Is det.ermlned th8 t to do so Is not In
fllrthcrance 01 the objectIves 01 the Federal
sponsorIng ILgenc~'. Wben title Is veste:! In
the recipient. the recipient shall hRve no
other obllgILtlon or accountabIlity to the
FedcrAl Government lor Its u"e or disposi-
tion except ns provided In On below.
O. Other nonezpendablc properly.-When
other nonexpene!nble tangible personal prop-
erty Is acquired by a recipient wIth project
lllnd". title shnll not be takcn by the Fc:1-
CT.'] C'J"()t"("r-n:nC'nt but shtiII t"('sl In thr "-,-
eJplent subject 1.0 the 101l0,,'ln/: condillons:
8. Right to Iran_jer tit/C.-For Items of
nonexpendnble per.onal property ha\'ln!: IL
unit ncquisltlon cost ot ~I.OOO or more. the
Federnl 5ponsor1nc n~cnc)' mRY rC$crvc the
right La trnnsler the title La the Federal
J
A-110:20
Government or to a third party named by
the f'ederal Government when such t.hlrd
puty Is otherwL.e eligible under existIng
sLRtul.cs. Such reservation shnll ue ""bJect to
the followlnr. standards:
(1) The pn>perty shall be approprlat.ely
hlentlne:1 In the gmllt or other ..!;reement
or otherwise made known to the recJplcnt
In wrltln/:.
(2) The f'c<leroJ sf>Oll.<;()rlng agenc)' shall
Isslle dispositIon IIl.~tructlons wlLhln 120 cal-
cud.U' c1nys after the end ot the Federal SlIp-
port 01 the project lor which It was ncqlllred,
\I the Federal sponsoring agency I..Us to I...~ue
dlsp()~ltlon Instructions within the 120 cnl-
clHlnr <lay period. the recipient shall npply
the stnndards ot sllbpnragrnphs Ob nnd Ge
"s npproprlnte.
. (:I) When the Federal sf>Onsorlnc ngenc)'
exercises Its rlr,h t to take tI tic. the person nl
property shall be subJeet to the provIsions
lor lederoJly-owned nonexpendable propcrty
dl"""s.~d In para(;'l'aph 4. above.
(4) Whep title Is transterred either to the
Fc<teral Oovenunent or to a third pILrty.the
provIsions 01 subparagraph llC(2) (b) should
lJe lollowed.
b. U..e 0/ other tangible nonezpendable
property jar which the rccipicnt ha.> tllle.
(I) The recipIent shall UEoC the property
In the project or pro(;'l'am lor which IL Was
ncqulred as'long ILS nceded. whether or not
thc project or pror,ram continues to be sup-
f>Ortcd by Federal lunds. When no longer
needed lor the Original proJect or program.
the recIpIent shall use the property In con-
nection with Its other lederally sponsored
activities. In the loll owIng order 01 prlorlt)':
(a) Activities, In the loll owing order 01
priori ty:
(b) Activities sponsorc<l by other Federal
ll{:enclcs.
(2) Shared. u..c.-Durlng the time that
nonexcmpt nonexpendable per60nal proper-
t). Is hele! lor use on the project or pro!;Tam
lor which It was acquired, the re<:lplent
sball make It available lor use on other proJ-
ects or progrnms II sucb other use will not
Intertere with the work on the project or
pror,ratn lor ,,'hlch the property W&6 origI-
nally aoqulred. First prelerence lor such
other use shoJI be given La other projects or
proltT&ffiS sponsored hy ,the Federal agency
that financed tbe property; second preler-
ence shall be given to projects or pror,rams
sponsored by other Federal agencies. It the
property Is owned by the Federal Govern-
men t. use on other acll vi lies not sponsored
b)' the Federal Government shall be per-
mIssible II authorized by tbe Federal agency.
User charges should be co~ldered 11 appro-
prla Le.
c. Dupo.rition 0/ other nonczpcnd!,ble
property.-When the recipient no longer
needs the property as provided In 6b aoove.
the property may be u&ed lor other actl"/l-
lies In accordance wltb tbe [ollowlng stnnd-
nrds:
(I) No"":rpendabtc property with a unit
ar.qui.'<ition cost 0/ less than Sl.OOO.-TIle re-
cipient may use the property lor other Iloctlvl-
tics without reimbursement to the Federal
Government or sell the property and re-
\.aln the proceeds.
t2) Nonerpcndable personal propcrty with
a unit acquisition co,,! oJ Sl,OOO or mOTC.-
The recipient mn)' retain the property 10"
other uses provided thILt compensntlon Is
mnde to the original Fedeml sponsoring
agcncy or Its successor. The amount 01 com-
pe"""tlon shnll be computed by npplylng
the peT'('ent_~ge of F'ed ern 1 p!'Jllelp":loll III
the co.~t ot the orll'lnl\l project or progrnm to
the currcnt talr mnrkct value ot the propcrt)'.
H the recipient has no need lor the property
nnd the propert). has lurther u"e vnlue. the
recipient shnll requcst dlspo"ltlon Instruc-
tions Irom tbe orl(;1\1oJ sponsoring agency.
I
Office of Management and Budget Circular A-110 (7/30/76)
TIle )"edeT1\1 sponsoring flgenc)' shflll deter-
mIne whether the property can be u>cd to
meet the flgenq", requirements. Ir no n-
qulrement exls!... wIthin thflt flgency, the
I\vflllablllty ot the property shall be report-
ed to tla Generfll Services ^dmlnlstntlon
by the Federfll agen"y to determine ,,'hether ..
requirement tor the property exls!... In other
Federfll f\gencle.. The Federal sponsorIng
flgency shflll Issue Instruction, to the recipi-
ent no Inter thf\n 120 dny' nlter the recIpi-
ent's request nnd the tollowlng procedures
shall govern:
(a) Ir ao Instructed Or II dl.sposltlon In-
structIons are not 1"\Ied within 120 cl\len-
dnr dnys nller the rcclplent', req\lest. the
recipient shflll sell the property find reim-
burse the Federl\l "ponsorlng agency nn
amount computed by applying to the sales
proceeds the percentage ot !"ederal partici-
pation In the cost 01 the original project or
proS'rnm. However, the recipient shall b"
permItted to deduct nnd retf\ln trom the !"ed-
ernl shMe liDO or ten percent ot the pro-
ceeds, whichever I' grent"r, tor the reclplent.s
selling and handllng expenses.
(b) Ir the r"clplent l. In,tructed to shIp
the property elsewhere. the recipient shall
be reimbursed by the benelltlng F'ed"rnl
agency with an amount ,,"'hlch IS computed
by applying the percentage ot th" reCipient's
particIpatIon 10 the cost ot the original grant
project or program to the current talr market
value of the property, plus any reasonable
shippIng or Intel1m storage costs Incured.
(c) If the recipient Is Instructed to other-
wise dispose of the property. the recipient
shall be reimbursed by the Federal sponsor-
Ing agency for .uch costs Incurred In tts
dlsposl lion.
d. Property manapement standards for
nonerpendable properl)/.-The reclplcnt'~
property ml\nagement standards lor nonex-
pendable personal property shall loclude the
lollowlng procedural requirements:
(I) Property records shall be maintained
accurately and shall Include :
(a) ^ descrlptlon ot the property.
(b) Manulacturer's serIal number, model
number, Federal atock number. national
stock. number, or other Identlncallon num-
ber.
(c) Source oC the property, Including
gr..nt or other a!;Teement number.
(d) \Vhether tItle vests In the recipient or
the Federal Govunment.
'(ej ^cqulsltloo date (or date received. If
the propert\' W8.S furnished bv the Federal
Government) and co~t. ~
(fj Percentage (..t the end 01 the budget
year) ot Federal participation In the cost or
the project or prol;rf\m lor "'hleh the prop-
erty "'8.5 acquired. (Not ..ppllcable to prop-
....ty furnished by the Federal Government.)
(g) Location. use and condition of the
property ..nd the d.. te the Inlormatlon was
r'porte<!.
(h) Unit acquloolllon cost.
(I) UIUmate disposition datl\, Including
ds te ot dlsposl\l and anles price or the method
u:sed to dct.ermine current fs..lr ma.rk.~t "a.)ue
....here a. reclplt'nt compen~ALes the Federa.l
oponsorlnS' asency for Its .har..
(2) Propertv owned b\' the Tedcral Gov-
ernmlnt mu.&t be mark~d to Indicate Ted-
oral ownership.
(3) ^ physlc..l lnventor)' ot propert" shall
be t..ken ..nd the results reconciled ",.ith the
property records a.t least once eVerv two
yeRrs. Any dlnerenclt between quantities de-
termined by the physical Insplctlon "nd
those shown In the accountIng records shall
be Investlgl\ted to determine the cau""s 01
the dlllerence. The recipient shall. In connec-
tion wJth the Inventory, verlly the existence.
current utilization. ..nd continued need lor
the prope rty.
(4) A control .),.tom .hf\ll be In errect to
1n.ur~ a.dequn.t.e Jlo.feb'unrd6 to pre'\"en~ l~.
damagc. or the It 01 the property. ^ny 10",
damage. or the It 01 nonexpendnble property
shall be Investigated and tully documented;
II the property w'" owned bl' the Tedera}
Government. the rerlplent shall promptly nO-
tlly the Federal ,p,)I1.orlng agency.
(5) Adequately maIntenance procedur..
shall be Implemented to keep the property
In good condItion.
(6) Where the rcLlplent Is authorlud or
required to sell the property. proper ...Ies
procedures shnll be establl.hed ,,'hlch would
provide lor competition to the extent prnctl-
cable and result In tho hIghest possible re-
turn.
7. Expendaule pCT30nat propat)/.-Tltle to
expendable personal property shall vest In
the recIpient upon acqul.llIon. It there '15 a
resldun.llnventory ot such property exceeding
t.l.OOO In totnl nggregate 1f\lr market value.
upon termInation or completion ot the grant
or other agreement. and the property Is not
needed for any other tederally sponsored
proJ"ct or program. the recIpIent shl\lI retain
the property for u... on nonCederally .pon-
sored activities, or sell It, but must In either
. case. compensate the Federal Go\'Crnrnent
tor Its share. The amount of compensallon
shall be computed In the same manner ft.S
nonexpendable personnl property.
8. Intanv1blc property.
a. Invention. and palents.-lf any progrnm
produces patentable Item... patent rlghl-<.
proce"",e., or Inventions, In the course oC
work sponsored by the Federal Government.
such fact shall be promptly and tully report-
ed to the Federal sponsoring agency. Unless
there Is a prior agreement bet"'een the re-
cIpient and the Federal sponsorIng agency
on disposItion of such Items, the Yederf\l
sponsoring agenc)' shall determine whether
protection on the Invention or discovery shnll
be 6Ought. The Federal sponsoring agency
w1l1 also determine how the rights In the In-
vention or discovery-Including rlghUl under
any patent L"5Ued thereon_hall be allocated
nnd administered In order to protect the pub-
lic loterest cooslstent with "Government
Patent Policy" (President's Memorandum
for Heads of ExecutIve Depnrtments and
Agenclea, ^ugust 23. 1971. and etatement of
Government Patent Policy as prlntec;l In 36
F.R. 18889).
b. CoPVri9h.ts .-Except as otherwl.sl pro-
\'Ided In the terffi.5 and condltlons of tbe
agr"'ment. the author or the recipient org..n-
IzatlOn Is lree to copyrlr,ht any books. pub-
IIcatlons. or other COpFle:htable m..t.rleJ.
dC\'eloped In the coune of or under a J".d-
eral agreement. but the Pederal spolllKlrlng
agency shall reservo a ro)'ally-free. nonex-
clusIve and Irrevocable right to reproduce.
publish. or other,,'lse use, and to &uthorl.e
others to use. the work for Government pur-
p06CS.
ArrACHMl:l<T O.--CnCtlLAa No. '\-110
""OCUJI.).(J:,.,.T BTAMDAJltDS
1. Thl~ r~t.lachment proyldes s:ta.nda.rd5 for
use by rec:plents In establlshlnl: procedure.
lor the procurement ot supplies. equipment.
construction and other ,ervlces with Fed~ra.l
lunds. Theu standard. &re Curnlsh.d to en-
:sure th~t luch materla.h; and. seTvlcep; a.re ob-
taIned In an effective m..nner f\nd In com-
pliance wIth the provIsions of applicable red-
er"J I..,.. and executIve orders. No addltlon..1
procurement standards or requlrem~ntJ; shall
be Imposed by the reder..1 sponsoring agen-
cies upon recIpient>; unless speClnCf\lIy re-
quired by l"edera) stntute Or executive orders.
2. The standards c.ontalned In this f\t\.lo.ch-
m.nt do not relieve the recipIent 01 the con-
tractu..1 responsibIlities &rIsing under It>;
contra.cu. The reClp'ent 15 the responsJble ft.\!-
thor1tj. without recour~c to the P'cdera.) spon-
sorln!: f\gency regarding the settlement o.nd
InU':A.ctlon of h.11 contrR.ctuf\.l find ft.d.mln1J,~
.1
A-110:21
tr..\Ive Inlles arising out ot procurements
entertd Into. In support ot a grant or other
a,::reemrnt. This Incl"Cl.. dl'putcs, claIm..,
prote~t& of "",'n.rd, JlO'\tTM IYf\.Jul\tlon or other
ffintten. of" eontrB.ctul\l naturt. )'fRttrra con-
cernln. vlolntlon ot law f\rt to be reterred to
s\lch local. 8tB"" or rederal authority... mny
haTe proper }urledktlOn.
3. RecipIents mr.y u.e theIr own procure-
ment policies and procedura.. no.....ever, all ro-
clplents shBIl f\dhere to the .tnndard. oct
torth In pnrngrf\phs 3 f\nd 4.
f\. The recipient shall maintain a code or
standnrd., ot conduct that shall !:overn the
pertormnnce oC 1\4 officero, employ",,"s or
ar,ent, enl:aged In the "wBrdlnr. nnd ndmln-
Istrnt.lon ot eontracts lIalnS' redernl tund,.
No employee, omeer or agent .hall pnrtlclpnte
In the selection, "ward or administration ot
1\ contract In ...hlch I"ederal tunct.. are used,
,,'here. to hi. knowledS'e, he or hI. Jmmedlflte
Camlly. partners. or organlzntlon In ..'hlch he
or his lmmedlnte tBmlly or pnrtner h,,-, a
nnnnCla) Interest or ,,'Ith ...hom h. I. nego-
tlallng or hM an)' ..rrangement concerning
pro. pectIn emplo)'ment. Tho reclplen{.,;' 01-
nccrs, employees or agents sh..lI neither solic-
It nor aoeept grntultl..s, fn"ors or An)'thln,::
of moneLI\TY vt\lue from contTnctor~ or poten-
tll\l contrl\ctors. ~uch .t..ndnrds shall provldc
tor dlsclpllnary acllons to be f\pplled tor vlo-
lallon. ot such stBndarcls by the reclpleots'
omcers, employees or O,f:ents.
b. ^ll procurement ~..nsactlons shall b.
conducted In a mann..- k> provide, to the
'maxlmum extent practical. open and free
competlllon. The recipient should be alert
to Orgl\nlz"tlono.l coomctJ; ot In\.crest or non-
comp..tl tIT e prl\Ctlce& ..mong oon trnctoTl5
thl\t InAY restrl.:t <r. eUmJn"te competition
or otllerwl.-.e restr60ln tr...ae. In order to en-
sure obje<:tlve contra.ctor pertOTmance ..nd
ellmlnal<> unll\.lr coenpetltlve adu.ntn.ge. con-
trn.clX>r. thl\t develop or or...rt spcclficfltJon.5.
requl~ments. rtnt.ementas of work. Invlt...-
tlons tor bIds and/Of' requests tor ~ls
should be excluded CJ'Offi =petlog lor suc-h
procurements. Awnro. IIl:HUl be made to the
bldd~ /arreror whose l1Id/ofTer l.s rcspons.lve
to ttl. .0 11 c I ta. tilon t>nd H II>O<l t ad vr.n l8.€ eo'Ull
to tM reel~t. price and other tn.cOOTl5 con-
sldere.d. So1lcltstlo'" s.hell cl....r1)' set forth
aU requlrements thllt tho bidder /orreror muet
fuUIU In order for h'" ~/ol!er to b<! e.,.,.lu-
ated by bhe re<:lplent. Any &nd all bld3/olfers
lTlf'y ~ rejeot.ed when It Is In tbe recipient's
In tAr..t to c\o 80.
c. ^ll recIpients Nlall ...t.e.b1\6h procure-
ment proceoures tbe.t provldf lor, at a m1n-
Imum. the tollowl~ P":O"""1uro..!Tequlrem.ents.
(1) Proposed pr~ent action. shall
lollow . priX'e<lure to ......ure tho avoldl\nc.
of pUJ'('~'l'6lng unneceo.sary or ch1p1lcatlve
Iwnu. Where "pproprle.k. an analJ"1ls shall
b. m&.doe of Ie""" and purcha.se. f\lloe1'nl\t.1vcs
IX> dekrmlne ...h~h ",'Owd be the moet
.conomloal. pr..ct\or..l p,~ment.
(2) f>ollcltatlolU to<' ~oo<I<I 8.1"ld ~rvlces
shall be 'based upon a clear and accur..t.e
d....rlptlOn ot tlhe technic..l requlrem.ents
tcr th. m..\Ao'rlal, prod""t or ~Ice to be
procured. Such a d.,..,r!?t.k>n shf\.ll not. In
corn.p-et.ltty-e procur.men\&, contatn fee.t.ure-s
whIch unduly rCOltrlet com.p.t.ltlon. "Brand
na.me DC' eqUAl" dUCTIpt.klns m<1Y ~ uud
a..e & mel\n& to o<<-t"ln. the pertormlLoo4' or
other ..alh'nt r.quirell"'lentl of a procuTemC'nt,
..nd when a-o ulllOd the- sp.cinC 1ef\tures 0: the
no.med bTlLnd .....hlch must be met by blddoro/
oller::>rs shaJJ b<! clee..rlJ' '1nc.ll\ed.
(31 Po.ltlve errorts :>hf\1l be mMIe by the
reclplenL. to ullllze sman buslnel<l\ al'd ml-
norttv-owned. bustneN 50urces or eupoHcl
and ~orvle."', Such errons should ..110.... theM
sources the mo.xlmum 1"....lble opportunity
to co""pe~ tor contraelo utlHz:.lng }"ederal
lun~.
(4) 11lt type or f""O<'\Irln~ lrutrum.nto
u,ed. ...., I\xed prlcl conlra.cU,. ooet rolJ'n-
I
Office of Management and Budget Circular A-110 (7/30/76)
bursable oontracl.s, purchlk".C orders, Incen-
tive contrnct.<. shall be determined by Ult
rt'Clplent but must be appropriate tor the
partloular procurcmen t alld for pr()m,.,tlll(~
the best InterC6t of the prormm Im'ol,'ed.
111e "cost-plu.;-a-percentage-oI-cos~" meWl-
od of contrn.ctlng shall not be uSC'd.
(5) Oontr(I.Ct.< shnl be made 0111)' with re-
sr>onslble contrl\CWTS who po=<;<; the po-
tentlon/l..! abilIty W perform suctt5"hllI)'
under the terms clld condItions ot a pro-
posed procurement. Collslderntlon ,.hall be
gIven to such mAtt.crr. ..., cont.mct.or In LebTl t)'.
rcoord of past performtUlce. Onallclal and
techlllonl resource.' or ncc~blllt). 1.0 oWler
neceSSArY rCSO\Jrr..cs.
(G) All proposed sole source cOlllrarts or
\I,;h('rc only one bid or proJ'XY.in..l is rN:ctvcd
In whiah the l\f;~rCj:nte expendIture 13 ex-
[><'Cted toO exceed '-5,000 shILII be subject t.o
prIor approval at the dl.<oeretl'lll ot the Fed-
eral sponoorlnr, '4;enC)'.
(7 J Some form ot price .or COGt I\1lah'sls
should be mnde In conllectlon with e~erl'
procurement acUon. PrIce annl)'slG ITV\)' be
accompll..<.hed In \'arlour, way.;, Includlllg the
comparison of price quotJ\Wons submItted.
IDnrket prices and similar IndicIa, l.ogethcr
wI t.h dl:>oou n ts. C<x;t aTlf\lvsls Is the revle""
and evaluation ot Cfic.h eie.mcnt of co..,.-t to
detcnn1ne roosono.bleness, a lIoca.b I II t\' and
allowa.bUlty. .
(B) Procuremcnt recordn and Oles for pur-
cho.s.es In elC'CeSS of "10,000 shall Include the
tollow!lns:
(a) B85ls for contT'll.Ctor selection:
(b) JU6tlficatlon for lack of competition
",'hcn compet..ltlve bIds or orren; a!"e not
obtained.;
(c) Basis for award. C06t or price.
(9) A 6ystem (or contract a.d:nJnlstmtlon
shall be malnt.nJned to ensure contrnctor
conformance with terms, condItions and
specifications of the coo tract, nnd to ensure
a.dequate and timely followup ot all pur-
chases. .
{, The recLplent shall Include, In addItion
to provisions to define a sound and complete
. a!;Teement, the followIng pro\'1Slons In all
contracts. These provIsIons shall also be ap:
plied to subcontrn.cts.
s. Contrn.cts In excess of no,ooo shrJI con-
tain contractu.al provisions or C()nd~tJon~
!.hat will tilo",' for a.dn11nlGtrntlve. cont~-
1;Un.l or legal remedJes In lnstnncc:; In "'"blah
contra.ctors \"Jola.t.c or brench contract tcnns
Imd provIde tor such remedial actIons ..;
m.sy u., appropriate.
b. All contrn<:ts In excC'S.5 ot ~IO.OOO shnl!
conbnln suJt..o.blc pro\'1..'"ilons for Le:-mJnf'.Uon
bl' the recIpient Including !.he mnnner b,'
""hlch terrnJnat.lon ",'111 be eITectcc and t.h~
bAsis for settlement. In a.ddltlon, suc.'! con-
trn.cl.s shall descrIbe conditions under whiCh
the oont.mct mA)' be LCnnlllaLcd for dcfILlllt
R..;' weU as conditions where the contrf\..Ct OHl}'
bc: t('rrn!nntcd b<"Ctl.u~c of cIT"C\lJl1...c:.ul.nc~ Uc-
yond the control of tJ1e oont.TRClOr .
c. In ail contracts for con.c:.trucUon or fR-
r.llit!' lrn.pro\'f."nlcnt awa.rded for lnorc thnn
~IOO.O[)O. recipients shall ob6crve t.he Oolld-
111(; rcqulrcln('nts pro\"ldcd In Al.u~cJuncnt 13
1.0 this circular.
d. All contract.~ a",'arc1ed by reclplellt..< and
their OOlllrn..ct.or.~ or 5Uup.Tnnt..ecs hn.vlng a
vallie of more than $10,000, sha.ll conl..ln a
provision requlrLng complt.nnce "'it.h Exccu-
tl\'e Order 112.G, entitled "Eqllal F..mploy-
ment Opportunlt)'," ns amenc1t'd br Executive
Order 11375. nlld as supplemented III Depnrt.
mellt of Lnbor regulntlons (41 CPR, J"lu"t GO).
c. All cUIlt-rILet.s nnd 5uh~rnnL-; 10 cxccs..c; of
~,2.000 for construction or rcpnlr DWf\rdcd hy
recipient.s Rnd subrcclplcnl..Ili shnU lnel ude 1\
provision tor eompllnllce with the Copelnlld
"Anti-Kick nack" Act (IB U.S.C. 874) IL.'
supplemented In Depnrtment of Lubor
re!:ulntlons (29 CF'R, Part 3). ThIs Act pro-
vides thnt each contructor or slIbgrnntee
shnll be prohibited (rom Inducing. by any
means. nn~' person employed tn the con.c;lruc-
Lion, completion, or repair ot public work. t.o
gIve up any part of the compensatloll to
which he Is other",'lse entitled. The recIpient
shall report 1'.11 suspected or reported vlola-
tlons to the Federal sponsoring agency.
r. When required by thc Federal pror,rnm
legl61atlon. all construction contracts
awarded b)' the reclplenl.s and subreclplents
01 more than ~.2.000 shall Include a provision
tor compliance with the Davis-Bacon Act (40
U.S.C. 276a to a-7) and ns supplemen'lcd by
Department ot Labor regulations (2P CPR,
Part 5). Under this Act contractors shall be
required to ps)' ""agcs to laborer6 and me-
chanICS at s rate not less than the minimum
"'ages spectOed III a wage determination made
by ,the Secretary of Labor. In addItion, con-
tractors shall be required to pay wages not
less than once a week.. The recipIent shall
place a copy of the current prevailing wnge
determInation Issued by the Department ot
Labor In each solicitation and the award
of a contract shall be condHloned upon the
acceptnnce of the "'age determInation. The
recipient shall report all suspected or re-
ported violatIons to the Federal sponsoring
agenc)' .
{;. Where "ppllcable, "II contracts awarded
by reCipients In zxcess of ~.2,OOO for construc-
tlon con'tract..c; nnd In exceES or t-:!.500 rOT
other contracts that In\"olve the employment
of mcchanlc5 or laborers. shall 1nclude a pro-
\,Islon tor compliance ""Ith 6ectlons 103 Rnd
107 of the Contrnct Work Hours Rod Salet\"
Standnrds Ac~ '40 U.S.C. 32.-330) as sup--
plemented by Departmen,t of Labor regula-
J
A-110:22
tlons (29 CrR. Part 5), Ullder section 103
(If the Act. ench conlrnctor !'ihall be TC-
qutr~d to (".(\Il11l\Jlc the \\!ngc~ of {'\'C'ry Jll€'-
chnnlc R.lId ln~orcr on the ba~1s of l\ standnrd
work dny of Po hour.=:. nnd n. slllndllrd work
\1."('(').:. of 40 hours. \\'ork 1n cXcC'..ss of lhe
st.andnrd workdny or wor~:\l,'crk 1:'; pcrrHIs.slble
pro\'1dcd lhA..t, the worker Js cOInpcl\~nlCd nt n
raLe o( not less thnn 1 y, times tilt' bnslc
rat!' of PRY for 1\11 hours wor}~l'd in cxccs~
of B hours in nny cnlendlH dny or 40 hOUTS
In t.he workweeK. Section 107 of the Act Is
npplJcnbJc to ("oll.oslr\lcllon work nnd provldrs
thnt no lnborer or nlcrhnnic shnll be rC(l'lir('d
lo work IJI st1rroull<llng~ or ullder worklng
cnrH.lI t1on~ whkh nre \I nsnnl t.nry, h~zardo\ls
or ctnngcro\1:5 \.0 hls health and sl\kly 11....<'; d('.
\l'rJlllnC{j under construc.tlon s'dcl~' n.lld
hcnlth stnndards prnrnulgnt.C'G by the Srcrr..
lnry or Lnbor. These rcqt1irC'lll(,l1t:i du 'lot
npply to thl.' rUfch1\.SCS of sllrpltc~ or nlfile.
rials or nrtlr.lcs ordinnrtly nvnllnblc on the
opeJl JnnrKe\.. or contrnct..o; for tnLJ1~porlnLlon
or lransnll~"ton or lnt.clllg'cnce.
h. C<Jntract.< or a[(reement.'. t.he prlllclpal
)lurpose of which I., l.o crente. develop or Im-
prove product.s. processes or nlct.liod!'; or for
exploration Into fields thnt dIrectly cOllr.ern
pllbllc henlth. satet)' or welfare: or contTllcts
III the field ot scl~nce or technology In whIch
there hns been little <01:nlflcnnt experlellce
ollt.~lde of work tunded b)' Fcdernl n.o;.slst-
nnce. shnll contain" notice to the eflect .thnt
mntLcrs resnrdlnr, rlght..C\ to inventions nnd
mulcrln)s generated under the contrnct or
af;reement are sllbject 1.0 the regulntlons 15-
>ucd b)' the Federnl sponsorIng agenc)' nnd
the recipient. The contmctor shnll be ad-
vl"-ed as to the source or addl tlonal Informa-
tlon regllTdlng these mnttcrs.
I. All negotiated contrnOl.s (except those
of ~IO,OOO or less) a",'nrded by recipIent..,
shnll Include " provision to tbe eITect thnt
t.he recIpIent. the Fcdernl spon.~orlng agency,
the Comptroller General o( the UnlLcd States.
or /lny of Ithelr dill)' authorl7.ed represeI1tn-
tlves, shall have "cce", to any bOOKS. docu-
ments. papers and records of the contrnctor
",'hlch are dIrectly pertinent. to a epeclOc pro-
grnm for t.he purpose o( makl ng nud! ts,
eu,rnlnatlons. ex""rpt., and trnnscrlptlons.
j. Contracts and subl(rants 01 amollnts In
excess of ~IOO.OOO shall contnln s provision
that requires the recipIent to aF:ree to com-
I'll' ",.lth sll appllcable st..nndards. orders or
reF:ulntlons Issued pllrsunnt. to the Clear Air
Act of ; P70 (~2 U .S.C. ] 857 et see;.) and the
Federal Wat.cr Pollution Contr,,1 Act (33
U.S.C. 1251 et seq.) as amended. Vlolntlons
shnll be reported to the Federal sP9nsOrln{;
n~cnc\" and the ReJ::lonal €lffice of the En-
\'lron;""entRl Protection Agency. .
I PR Doc.76-21904 FlIed 7-29-76;B :45 am)
I
APPENDIX H
OMB
Circular A-I22
I
..
I
Office of Management and Budget Circular A-122 (6/27/80)
OH'lCE OF MANAGEMEHT AND
BUDGET
C1rcolar A-122, "Cost Principles for
Nonprofit Organizations"
AGENCY: Office of Managp.nlent and
Budget.
ACTfON: Final Policy,
June 27, l!IUO
To The Heads of Executive
Departments and Estnblishments
Subject: Cost principles for nonprofit
organizations,
1. Purpose, This Circular estalJlbhea
principllls for determining costs of
grants. contracts lInd other agreements
with nonprofit organizations, It does not
apply to colleges ar.d universities which
nre covered bv Circular A-ZT: Stnte,
local. and fc"demlly :ecogn:zed !ndian
tribal governmp.nts which are covered
by Circular 74--4; or hos;:;itc::ls. The
principles are designed to provide that
the Federal Government Lear its fair
share of costs E:xceot where rcstri::ted or
prohibited by law. The principles do not
a ttemptto prescribe"the extent of cost
shurir.g or matching on'grants, contracts,
or othe: agreemel:ts. However, such cost
sharing or ma tching shall no: be
accom;:>lished th1'ough nrbilrary
limitations on individual cost elements
by Fede.3l agencies. Provision fer profit
or other increment above cost is outsids
the scope of this Circular.
2, Sl.'persession. This Circular
supersedes cost principli:s issued by
individual agencies for non"proflt
organization,
3, Apphcabi/ity, a. T-hese principles
shall be used by all .Federal agencies in
determining the .costs of work performed
by nonprofit organizations under grants,
cooperative agreements, cost
reimbur::ement contracts. and other
contracts in which costs are used in
p;-ir.ing. administration, or se.ttlp.menl.
All of these instruments arc nereaflcr
referred to as awards, The principles do
not apply to awards under which an
organiza tion is not required to accoant
to the Government for actual costs
incurred,
L. All cost reimbursement subuwanls
(subgrants. subcontracts, etc,) are
subi~Cl to those Federal cost principles
applicable to the particular organization
concerned, Thus, if a subaward is to II
nonprofit organization, this Circulnr
shall apply; if a" sllbaward is to a
commercial organiza tion. the cost
principles applicable to commercial
CC:lcerns shall apply; if a subaward is to
II college or unh'ers:t\', CircuJ<.Ir A-21
~hall Anpl\'; if a ~lIba~'..nrd if; 10 n St;lle.
10caJ,-or federB11yreoci~i:7..ed Indillni
tribal government. Circule.r 7~ sball
oppl}'.
4. Definitions. a, "Nonprofit
organizotion" means any corporation,
trust, II'9socia tion, coopera tive, or other
organization whi-ch (1) is operated
primarily for scfentific, educational.
service, charitable, or similar purposes
in the public interest; (2) is not
organized primarily for profit; and (3)
uses its nel proceeds.to maintain,
Improve, and/ or expand its opera tions.
For this purpose, the term "nonprofit
organization" excludes (i) colleges and
universities; (ii) hospitals; (iii) State.
local. and federa!!y recognized Indian
tribal governments; and (iv) those
nonprofit organizations which arc .
excluded from coverage of this Circular
in accordunce with paragraph 5 below.
b. "Prior approval" means securing
the awarding agency's pc:rmission in
advance to incur cost for those items
that are designated as requiring prior
approval by the Circular. Generally this
permission ......ill be in writing. Where <.In
item of cost rFquiririg prior approval is
specified in the budget of an.award,
approval of the budget const"ilutes
approval c;f t~at cosl.
5. Exclusion of some nonprofit
orgonizations. Same nonprofit
organizations, because of their size and
nature of operations, can be considered
to be similar to commercial. concerns for
purpose of applicability of tost
principles, Such nonprofit organizations
shall operate under Federal cost
principles applicable to commercial
concerns. A listing of these
organiza tione is con.tained. in.
Attachment C. Other organizations may
be added from lime to time.
6. Responsjbj/iliefi. Agencies
responsible for administering progra.ms
that involve awards to nonprofit
organizations shall implement the
provisione of lh.is Circular, Upon
reques!. implementing instr:.1ction shall
be furnished to the Office of
Management ~.ld Budget. Agencies shall
desisnate a liaison official to serve as
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 Management and Budget
within 30 days of the date of this
Circular.
7. Attachments, The principles and
related policy guides are set forth in Ule
follo....rjng Attachments:
Attachment A~Deral Principles
Attachment B-Sclected Hems of Cost
Attachment C-Nonprofit
Organizations Not Subject \r This
Circular
I
A-122:1
8. Requests for ex cepUOJlS , The Office
of Management and Budget may grant
exceptions to the requirements of this
Circular when permissible under
existing law. However, in the interest of
achieving maximum UnifOlll1it}'.
exceptions will be permitted only in
highly unusual circumsl.ance5,
9. Effective Date, The provisions of
this Circular are effective immediatel\'.
Implementation shall be phased in by'
incorporating the provisions into ne\v
awards made after the start of tne
organization's next fiscal year. For
existing awards the new principles may
be applied if an organization and the
cognizant Federal agency agree, Earlier
imI1JementLltion. or a delay in
implementation of individual provisions
is also permitted by mutual agreement
between .morganization and the
cognizant Federal agency,
10, inquiries, FurUler information
concerning this Circular may be
obtilined by contacting the Financial
Management Branch, Budget Review
Division, Office of Management and
Budget. Washington, D.C, 20503.
telephone (202) 395-47i3.-
James T, Mcintyre, Jr..
Director,
ICircular No, A-1:!2}
Attachmenl A
General Principles
Table of Contents
A, Basic Considerations
1. Composition of lolal costs
2. Factors affecting allowability of costs
3, Reasonable coslS
4. Allocable costs
5, Applicable credits
O. Advance understandings
B. Direct Cosla
'\
C. Indirect Costs ..
D. Allocation of Indirect Costs and
Determination of Indirect Cosl Rate,
1. Genp.ral
2. Simplified allocation method
3, Mul1iple allocation base method
4. Direct allocation method
S. Special indirect cost retes
E. Negotiation and Approval of Indirect Cost
Rates
1. Definitions
2. Negolia tions and appro\'al oj ra tes
[Circular No. A-::22]
Allachmcol A
Ger:ernl Principles
A. Dosie Considerations.
1. Composition of total costs. The total cost
of an award is the ~um of the allowable
d,reclllnd llllocable indirect costs less any
applicable credils.
2. Factors oFcclins cllvl<'obilily of (;05Is.
I
Office of Management and Budget Circular A-122 (6/27/80)
To be allowable \D1der an aWard, costs rrro~t
m~t the following g~neral criteria:
a, Be reasonable for the performance of the
award and be aUocabJe therelo under these
principles,
b, Conform 10 BO}' limitations or exclu8ions
set forth in these principles or in the a wllrd
as to trpes or amo~nt of coslilems,
c. De consist C'l;lt wjth policies and
procedures that apply unilormly to both
lederally financed and other Activities of the
organization.
d, De Accorded comistel,ttreatmenl.
e. Be determined in accordance wIth
generally accepted accounling principles.
r. Not be included as a cost or used to meet
cost sharing or matchi~ requirements of any
other lederally Iinanced program in either the
current or a prior period,
e. Be ad~quately documented.
3. Reasonable cosJs, A cosl is reasonuble
if, in its nnlure or amount. i(does not exceed
that which would be Incurred by "a pn:dent
person under the circumstrmces prc~"aning a\
the time the decision was made to incur the
costs. The question of the l'easonableness,of
specific cos:s must be scrutinized with
particular care in connectign with
organi::a tions or separa Ie di\'isions thereof
which receive the prepolld"erance of their
support from awards made" by Fede"ral
agen.cies.ln determining the reasonableness
of a given cost, consideraticn shall be given
to:
a. Whether the cost is of a type generally
recognized as ordinary and necessar}' for the
operation of the organization or the
performance of the award.
b, The restraints or reCJuirements imposed
by such factors as generally accepted sound
business practices, arms l"eng:h bargaining,
Federal and State laws and regulations, and
terms and conditions of the award.
c" Whether the indivldlial6concerned aCled
'.~ith prudence in Ihe circumstances,
considering their responsibilities to Ihe
organizalion, its members, employees, and
clients, the public at large, nnd the
Governmen l.
d. Significari t dcvia tions from lhe
established practices of the orgJnization
which ma)' unjustifiably increase the award
costs.
4. Allocable casu.
a. A cost is allocable to a particular cost
objective. sucl: as a grant. project. service, or
other activity. in accordance with the relative
benefits received. Acost is allocable 10 a
Government award if it is treated
consistently with other costs incur:-cd for the
same purpose in like circumstances and if it
(1) Is incurred specificallv for the sward,
(2) Benefits both the awa'rd and other work
and can be dis:ributed in reasonable
proportion to the benefils received.
(3) Is neccssary to the overall operalion of
the organization, although a direct
relalionship to any particular cost objeclive
cannot be shown.
b. Any cost allocable to a particular award
or other cost objeclive under Ihese princoiples
may not be shilled 10 other Federal awards to
overcome Iundino: deficicncies, or to avoid
restrictions imposed by Jawor by the terms
of ihe award"
5. Applicable cred.iL~.
a, The term applicable crcdits refcrs to
those receipts, or reduction of expenditures
which opcrate \0 offsct or rcduce expanscs
items that lire allocable to awards as direct
or indirect COStl. Typical eXAmples of such
tran!actions are: purchasc discounts, rebates
or allowances, recoveries or indcmnities on
losscs, insurance refundl, and adjustments of
overpayments or enoneous chargel. To the
e)(tenlthat such credits accruing or received
by the organization relate to allowable cost
they shall be credited 10 the Governmcnt
either as a cost reduction or cash rclund as "
appropriate.
b, In some instanccs, the amounts received
form the Fcderal Government 10 finance
organizational activiticl or service operations
should be trealed as applicable credits.
Specifically, the concept of r.elling such
crcdit items against related expenditures
should be applied by Ille organizalon in
deterrning the rn les or amounls to be
organizai:on in determinin~ the rates or
arnaounts tobe charged to Federal awards
fnr services rendered whenever the facilities
or other resources used in providing such
"services havc been financeu directly, in
whole or in part, b}' Federal funds,
a(c) For rules covering program income
(Leoo gross income earned from federally
supported activities) see Attachment D of
OM13 Circular A-ll0.
6. Advance and underslandings. Under any
given "award the reasona blenc-ss and
allocability of certain ilems of costs may be
difficult 10 determine. This particularly true ill
conoection wilh OrgizBlio~ thai receive a
preponde";.ance of their support from Federul
agencies. In "order 10 6void ,ubsequent
disallowance"or dispute based on
unreason<ibJene~s or nonallocabilitv, It is
often desirable to seek a wriiien ag'reement
with the cognizant or Qwarding "agenc); in
advance 01 the incurrence of special or
unusal costs. The ebsence of an advance
a.I1TCement on anv element of cost will not, in
it~eJf. affect the ;easonableness or
aliocability of that element.
B. Direct Costs
1, Direct costs are those that can be
identificid specifically with a particular final
cost objeclive: Le.. a particular award,
project. service, or other direct activity of an
crg;mizalion. However, a cost may not be
assi'i!ned 10 6.n award as a direct cosl if anv
oih~r cost incurred for the same purpose, i~
like circumstance, has belm allocated to nn
award as an indirect cosl. Cost identified
s;-:<:ciflcAlly with Awards are direct cosl of the
a wa:-ds I!nd ere 10 be assigned directly
thereto. Cost identified specificaliy with other
fi"al cost objectives of the organization are
direcl costs of those cost objectives and arc
nol to be assigned to othzr award. directl\' or
inrlirectly. -
2. !~ny direct cost of a minor"amount mny
be lr<>3 led as en indir~ct CC'~i ofar reasons of
pruclicality where the ar-collnt treatmen: fur
such cost is consistently opplied to all finnl
cost objectives,
3, The cosl of certain activities ore not
el!ow;.oble 110 chargl's to Federal awards lse~.
for e~:ample, lund raising costs in paragr;.oph
-,
A-122:2
21 of f\llnchment B), However, even though
these cost~ lire unallowable for purposes of
computing charges to Federal Bwards, the\'
nonelhele~5 must be treated as direct cost for
purpose. of determining Indirect cost rates
and be allocaled their share of the
orgAnization'. indirect costs if they represent
ocliritieswhich (1) include the SAlaries of
pcrsonnel, (2) occupy ~p~ce, and (3) bencnt
from the organization's indirecl cosls,
4" lbe costs of aclivilie. performed
primarily as a service to members, clients, or
the general public when significant nnd
necessary \0 the orgunization's mission must
be Irea ted as direct costs when or not
ollo';"able and be allncnted an equilahle
share of inuircct costs. Some eXRmples of
thcse type, of activities include:
II" Maintenance qf membership rolls,
subs"r.riptions, publicatiom, and rclnted
f unt:lions.
b. Pro\'iding scrvices and information to
members, lcgislative or administrative
bodies, or the public,
c, Promotion, lobbying. and other forms of
public relation!.
d. Meetings and conferences except those
held to conduct the general administration of
the organization,
3. I\lainlenacne, protection, and investment
uf special funds not used in opera tion of the
orgunizD t ion,
r. Administration of group benefits on
beheH of members of clients including life
"and hospital insurance. annuity or retirement
plans, financial aid, etc.
C. Indirect Cost.
1. Indircct cosls are those that have been
inc::rred [or common or joint objectives and
cannol be reildily. identified with a particu\ui
final CC'st objective, Direct Cust 01 minor
ar.lOunls may be treated as indirect costs
under thi! clJndilions described in paragraph
13"2" above, Aile. dir<>ct costs have been
determined and assigned direclly to awards
or other work as appropriate, indirect costs
l\r~ those rem:;ining to be allocated to
benefiting COf', objectives, A cost m~"y not he
allocated 10 an award as an indirecl cost if
flllY olher cost incurre4l for the iame purpose,
in Eke cir~umolance~, "has been assi!,~ed to
an l<,,:ard as a direct coot. l
2, Bccause of the diverse characteristics
Rnd accounting practices of nonprofit
crganizations, it is not possible to specify the
typl'S of cost which may be classified as
innirp.ct cost in all situation. However, typical
e"xamples of indirect cost for many nonprofit
o:"sanizations may include depreciation or
\;se allowance..s or. buildings end equipment,
thc costs of oper.,:ing and maintaining
f.,cilities, and general Rdministrstion and
g:"ne.al expenses, such a~ the salaries and
expenses of executive officers, personnel
odrr.irlistralion, Bnd accounting"
D. Allocation of Indirect Cost and
D,,/crminotion ~f Indirect Cost Rutes.
1. General.
a" Where a nonprofit oq!aniZR tion has only
unc rr.Hjur function, or where ail its major
functions benefit from its indirer:l costs to
approximately the same degrl'e, the
Hllocp.lion of indi;cct coosts IInd Ihe
I
Office of Management and Budget Circular A.122 (6/27/80)
computation of an indirect cost u Ie a>.&y be
accomplished through simplified alloClilion
procedurel liS do scribed in para/V"ph 2
below,
b. Where an organir:ation hal several major
functions which benefit from its indirect costs
in varying degrees, Illloclltion of indirect
costs may require the accumulation of Iluch
costs Into separate cost groupings which then
are allocated individually to benefiting
functions bv meAns of a base which best
measures the rf)lotive degree of benefi\. The
indirecl costs &.lIocaled to eAch function are
then distributed to individulll Rwards and
other Activities included in thaI dunction by
means of an indirect COllI rote{s),
c. The determination of what constitutes an
orgAnizalion's major functions will depend on
its purpoae in being: the types of scrvice5 it
renciers to the public, its clients, and ils
members: anti the Itmount of effort II d"votes
to such activities os fund raising, public
information and membership activities.
d. Specific methods for alloca ting indirect
costs and computing indirect cost roles along
wilh the conditions under which each method
should be used are described in paragraphs 2
through 5 below,
e, The base period for the II1l0cation of
indirecJ costs is the period in which such
costs are incurred and IIccumula ted for
allocation wo work performed in that period.
The base period normally should coincide
with the organization's fiscal yaar, but in any
evnt, shall be so selected as to avoid
Inequities in the alloca tion of the costs.
z. Simplified allocotion method.
a. Where an organization's majur functions
benefit from its indirect COits to
approximatel)' the samE' degre, the u!localion
of indirect costs ma~' be acco:nplished by (i)
separating the organization's total costs for
lhe ba~e period as either direct or indirect.
nnd (ii) di\'iding tbe total allowable indirect
costs {net of ap.piic:able credits} by an
equitaule distribution base. The result of this
process is an indirect cost rate which is used
10 distribute indirect costs to individual
a wards, The rsle should be expressed as the
percentuge which the lo(al amount of
allowoule indirect costs bears to the base
selected. This method should alos be used
where an organizalic>n has only one m"jor
function encompasFing a number of
individual projects or /lcth'ilies. and may be
u~ed where the level of Federal awards to an
orgonization is relatively small.
U, both the d:rilct costs and the indirect
ccsts shall exclude cap;tlil expenditures and
unallowable costs, I iowever. unallowllble
costs which represent Activilies must be
included in the direct costs under the
conditions described in paragraph B.3. above.
c. The distribution base ma}' be total direct
costs [excluding capital expenditures and
other distorting items, such IH major
subconlr"cts or s:Jbr;rantti), direct se\aries
and woges, or other base which results in an
equitable distribution. The distribution bose
shall generally exciude pa;ti..ipa:11 suport
cosL. as defined in paragraph Z9 of
Atlac:hment B,
d. Exce~'t where a speda! ralels) i;;
required in accordance with paragraph 0.5
below. the .indirecl..GQ1l1 ule ~......loped. ....&r
the abrlve prinr,ipw.s ~Il aro>liCllbk.ID all
aWIIN!I a tthe O<1laniwiion..u a special
ra tel s) is raquired.apprapria ta modif&CM lions
shall be made in order ID develop .lhe special
ratels).
3. Multiple allocalion base OIet/rod.
&. \Vhere an o'1!anization's indirect costs
benefit its majorfunctiona in varying degrees.
such costs shall be accumulated into separate
cost grou~s, Each grouping shall then be
allocated individually to benelillng functions
by means of a base which best measures the
relative benefits.
b. TIle groupings shall be eSlnulished 50 as
to permit the allocation of aach !lroujlin~on
the basis of benefits provided 10 the major
functions, Each groupin:; should constitute a
pool or expenses Ihat arc of like character-in
terms of the func:tions Ihe)' henefitund in
tenns uf the olluLuli"u hu"" whh~1 l",~t
measurs the relutive benelils providd to each
function. The number of separate groupings
should be held within practical limits. taking
into consideration the materiality of the
amounts im'olved and the degree of precision
desired.
c. Actual conditions must be taken into
aCLount in selecting the base to be used in
alloca ting Ihe expenses in each grouping to
benefiting functions, When an allocation can
be made by assignment of 8 cost grouping
direct'" 10 the function benefited, the
sllocaiion shall be made in thai manner.
When the expenses in a grouping are more
general in nature. the allocation should be
made through the use of a selected base
which produces results that are equitable to
both the Government and the organization. In
general. any cost element or cost related
factor associated with the organization's
work is potentially 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,
direct salaries and wages, slaff hours applied,
square feet used, hours of usage. number of
documents processed, population served, and
the like) and (ii) it is common to the
benefiting functions during the Lase period.
d, Except where a special indirect cost
raters) is required in accordance with
paragraph D.S. below, the separate groupings
of indirect costs allocated 10 each major
Junction shall be agrl'galed and treated as a
common pool for that function. The costs in
the common pool shall then be distributed to
indivisual awars included in that function by
use of a single indirect cost rate.
e, The distribution base used in computing
ti,e indirect cost rate for each function mov
b~ total dirp.ct costs (excluding capital .
c::penditures and other distorting items such
us major subcontracts and subgrants), 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
pllragraph 29, Attachment B. An indirect cost
rate should be developp.d fir each separate
indirect cosl pool developed. The rate in each
case should be slated as the percentage
whic:h lhe amount of the particular indirect
cost pool is of the distribution base identified
.1
A-122:3
with tha t pool.
4. Direct allocotion method,
a. Some rnmprofit organizations, \reat all
costs as direct costs expect general
administration and general expenses. These
organizations generally separate their C06ts
into thre basic categories: (i) General
administration and general expenses, (ii)
fund raising, and (iii) other direct functions
(including projects performed under Federal
nwards), Joint costs, such as dE'preciation,
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 appropriale to the
particular cost being prorated,
b. This method is acceptable provided each
joint co.st is prorated using a base which
Ilcc:uro'tel\' meusures the hencrit~ provided to
ellLh /Iwu"rd or "liter uLllvll\" The: bll""" 11I11/11
be established in accordan~e with resonable
criteria, and be supported by current data,
This method is compatible with the
Standards of Accounting and Financial
Reporting for Voluntary Health and Wellare
Organizations issued jointly by the National
Health Council. Inc.. the National Assembly
of Volunlary Health and Social Welfare
Organizations, and the United Way of
America.
c, Under this method, indirect cosls consist
eclusively of general administration and
general expenses. In all other respects, the
orgoni::ation's indirect cost ratess sha! be
computed in the same manner as that
described in paragraph D.2 above,
5: Special indirect cost rates. In some
instances, a single indirec:t cost rate for all '
activities of an organization or for each major
function of the organization ay not be
appropriate, since it would not lake inlo
accounlthose different factors which may
substantiallv affect the indirect costs
applicable t~ a particular segment of work.
For this purpose, a particular segment of
work. For this purpose, a particular segment
of work may be that performed under a single
award or il may consist of work under a
group of awards performed in a common
environment. the faclori may inClude the
physicalloca tion of the work, the level of
Rdministrative support rE'quired, the nalure of
the facilities or order resources employed, the
scientific disciplines or technical skills
involved, the organizationol arrangements
used, or anv combination thereof. When a
particular ;egment of work is performed in an
environment which appears to generate a
significantly different level of indirect costs,
provisions should be made for a separate
indirect cost pool applicable to such work.
The separate indirect cost pool should be
developed during the course of the regular
allocation process, and the separate indirect
cost rate resulting therefrom should be used
provided it is determined that (i) the rate
differs significantly from that which would
ha\'e been obtained under paragraph D.Z, 3,
and 4 above, and (ii) the volume of work to
which (he rate would apply is material.
E. Negotiation alld Approval of Indirect Cost
nales.
I
Office of Management and Budget Circular A-122 (6/27/80)
1. Definitions. As uscd in this section, the
lollowl~g lcrms have the meanings setlorth
bclow:
a. "Cognizant agency" means the Federal
agency responsible for negotiating and
approving indirect cost rates for a nonprofit
organization on behalf of all Fedcral
agcncir.s.
b. "Predetermined role" means an indirect
cost rate. applicable to a spccified currcnt or
future period. usually the organization's fiscal
vear. The rate is bascd on 8n cstimate of the
~oSls to be incurrcd during the period. A
prcdctermined role is not subject to
adjustment.
c, "Fixed ratc" mealls on indirect cost rate
which has the slime charactcristics as 8
predetermined rate, excepl thotthc difference
between the estimated costs and the 8ctuol
costs 01 the period covercd by the rute is
carricd lorward 8S an adjustment 10 thc rate
computation of a subsequcnt period,
d, "Final rate" means an indirect CClst rate
applicable 10 a specified past period which is
based on the actual costs of the period. A
final rate is not subject to adjustment.
e. "Provisional rate" or billing rate means a
temporary indirect cost rate applicable to a
specified period which is used for funding,
interim reimbursement. and reporting indirect
cbsts on awards pending the establishment of
a rate for the period.
f. "Indirect cost proposol" means the
documentation prepared by an organization
to substantiate its claim for the
reimbursement of indirect costs, This
proposal provides the basis for the review
and negotiation leading to the establishment
01 an organization's indirect cost rate,
g, "Cost objective" means a function.
organizational subdivision, contract. grant, or
other work unit for which cost dota arc
desired and for which provision is made to
accumulate and measure the cost of
processes, projects. jobs and capitalized
projects.
2. Negotiation and opprol'a/ of roles,
a. Unless different arrangements arc
agreed to by the agencies concerned, the
Federal13gcncy wil.h the lorgest dollar value
of awards with an organization will be
designated as the cognizant agency for the
negotiation and approval of indirect cost
rales and. where necessary. other rates such
as fringe benefit and computer charge-out
ra tes. Once an agency is assigned cognizance
lor a panicular nonprofit organiza tion. the
assignment will not be changed unless there
is a major long-term shill in Ihe dollar volume
of the Federal awards 10 the organization, All
concerned Federal agencies shall be given the
opportunity to participate in the negotiaflon
process, but aller a rate has been agreed
upon it will be accepted by all Federal
agencies. When a Federal agency hos reason
10 believe that special operating factors
affecting its awards necessitate special
indirect cost rates in accordance with
~aragraph 0.5 above. it will. prior 10 the time
tne rates are negoliated. notify the cognizonl
agency.
b. A nonprofit organization which hos not
previously established an indirect cost rate
with a Federal agency shall afler the
organization is advised that an award will be
made and. in no evenl, laler than three
months aller the effective date of the award.
c. Organizations that have pre\'iously
estabiished indirect cost rates must submit a
new indirect cost proposal to the cognizant
agency within six months after the dose of
each fiscal year.
d. A predetermincd rate may be negotiated
for use on awards where there is reasonable
assurance. based on past experience and
reliable projection 01 the organization's costs,
that the rate is not likely to exceed a rille
based on the organization's actual costs.
e. Fixed rates may be negotiated where
predetermined rates arc not considered
appropriate. A fixed rate, however, sholl not
be negotiated if (i) all or a substilntial portion
of the organization's awards arc expected to
expire before lhe carry-forward adjustment
can be made: (ii) the mix 01 Government and
non-government work at the organization is
too erratic to permit an equitable carry-
forward adjustment: or (iii) the organization's
opero tions Ductua te significantly from year to
year.
f. Provisional and final rates shall be
negotiated ,where neither predetermined nor
fixed rates are appropriate,
g. The results of each negotia tion sholl be
formalized in a written agreement belween
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 ure
encountered among the Federal agencies in
connection with the negotiation and approval
process, the Office of }'.1anagement ond
Budget will lead assistance as required to
resulve sllch problems in a timely manner.
[Circular No, A-1Z2]
Atlachment B
Selected hems of Cost
Table of Contents
1. Advertising costs
2. Bad debts
3. Bid ann proposal costs (reserved)
4. Bonding costs
5. Communicalion costs
e. Compellsa tion for personal services
7. Contingency provisions
~. Contributions
~. Dep;l~ciatlon and use allow/lnccs
10. Donations
11, Employee mnrale, heolth and .welfare
costs and credil5
1:. Entertainmenl costs
13. Eqnipment and other copilal expenditures
1~. Fines and penalties .
15. Frin~c benefit.
j5. Idle 'facilities and idle car-nci:y
17. Indcpendent reseorch and development
(resen'ed)
19. Insurance and indcmnificnlion
19. Inlere~l. fund-raising. and investment
mnnogem!:nl cosls
2!l. Lnbor relations C..'lsts
I
A-122:4
21. Lpssps on olher a......ard;
n. Maintcn~nce artd rqlf\ir costs
23. Ma lcrials r,nd supplic,;
24. M"etin~s. conferencr;s
~;, Meml>erships, subscripliClns, ~lId
prGfessional activity costs
20. Organizntion costs
27. Overtime, extra.pay shifl, ond multishift
prclniurr.s
26. Page charges in professionul journHlfl
29. P~rti(;ipant supporl cosls
39. Patcnl coels
31. Pension pluns
32. Plunt sccurity costs
. 33, Preaward costs
34. Professional service cClsls
36. Profits Rnd losses on disposition of
depreciuble properly or other capitol
/lsscls
3fJ. Puulic information sCr\'ice costs
37, Publication /lnd printing costs
:iO. Rearrangement and alteralion costs
39, Reconversion costs
40. Recruiting cosls
41. Relocation costs
42. Rental costs
43. Ro}'olties and olher cosls for If!;c of
palent. and copyrights
41. Severance pay
45, Specialized service facilities
'Hi. Taxes
47, Termir..ation costs
4(\. Training and educotion costs
49. Transponotion costs
50. Tra"el costs
[Circular No, A-l2.2]
Altnchment B
Selected hems of Cost
Paragraphs 1 through 50 provide principles
to be opplied in establishing the allowubility
of certnin items of cost. These principles
npply whether a cost iR trea led as direct or
indirect. Failure to mention a particular item
of cost is not intended to imply thaI it is
unallowable: rather delermination os to
nllowabilitv in each case should be based on
the trealnl~nt or principles provided lor
similar or rela led items 01 cost.
1. Advertising casts. . ~
a, Ad',ertising costs mean the costs of. -
media sr.lVice. and associated costs. Media
odvenising includes magazines, new-spapJrs,
radio and television programs. direct mail
exhibits, and the like.
b. The only advertising cosls allowable are
those which are solely lor (i) the rocruitment
of personnel when considered in conjunctiOll
with 011 other recruitment costG. as sel fortb
in paragraph 40;-(ii) the procurement of goods
a ncl services: (iii) the disposal of Ilurplm
materials acquired in the performance of the
award except when organizationG are
reimbursed lor disposals al a predetermined
amount in accordance wilh Attachment N of
OMB Circular A-llO: or (ivl specific
,requirements of the award,
2.. Bod doblS. Bad-clebts, including I~ses
(whether aCluAI or estimated) arising from
uncollectible accounts and othor dllims.
related collection costs, and relaloo legal
costs. Are unallowable.
3. Bid and propasol ca,<ts, (reserved)
4. flonding costs.
. t
~~\
I
Office of Management and Budget Circular A-122 (6/27/80)
a. Oonuing co~ts arise wh~n Ihe
Government require81155urance again8t
linllnciallos~ 10 jt5ell or others hy reason of
the ar.t or default of the organization. 11>ey
urise 0150 in instances where the organi:r:ation
rp.quires similar assuranoe. Inciuded ore such
bonds as bid. performonce. paymen!.
lJd\llOr.e paymenl. InfringemenL and fidelity
buno5.
b. Gusts of bonding required pur5uant \0
the terms of Ihe award"re allowl\hle.
c. G05ts of bonding required by the
orgolni7.ation in the general conduct of it,
operations arc allowable to the exlcnlthat
such bonding Is in accordance with sound
bllsine~s practice 0 nd the ra tes and pTemiums
IHe reasonable under the circumstances,
5, Commuoication oo,.ts. Gosts incurred for
telephone serviceR. local and long distance
telephone calls. telegrams. radio!lrll~.
poslage IInd the like. are allowable.
6. Compensation far personal sen'ices.
a. Defini/ion, Compensation for personal
services includes 1111 compei1salion paid
currently or accrued by the orga::il:ation for
services of employell& rendered during the
period of the award (except as otherwi5e
provided in paragraph g. below), 11 includes.
bul is not limited to, salaries, wages.
director's and executive commillee member's
fees, incenth'e awards, fringe benefits.
pension plan COSIs, allowance' for off-site
pay. incen:ive pay. location allowances,
herdship pay. and cost of living difierentials.
b. Allowabilily. Except as otherwise
specifically provided in this paragraph the
costs of such compensation are allowable to
the extent tha t:
(1) Total compensation to.indi\'idual
employees is reasonable for the services
rendered Bnd conforms to the estabiished
policy of the organiz:stion consistently
applied to both Govemmentand Don-
Government activities: and
(2) Charges \0 awards whether treated as
direcl or indirect cosls are determinl:d and
supported a\ required in this paragraph.
c, Reasonableness.
(1) When the organization is predominantly
engaged in activities o!ber !ban !bose
sponsored by the Governmenl. compensation
for employees on Governmenl-sponsored
work will be considered reason!lble to the
extent that II is consistent with that paid for
similar work in the organi:z:atio'n', other
aclivities,
(2) When the organization is predominantly
engaged in Government-sponsored activities
and in cases where the kind of employees
required [or the Government acli\'ities arc
not found in the organization's other
activities. compensation for employees on
Go\'ernment-sponsored work will be
considered reasonable .10 the extent that it is
comparable to that paid for similar work in
the labor marKets in which the organization
competes for the kind o[ employees involved.
d, Special considerations in determining
allowability. Certain conditions require
sflecial consideration and possible limitations
in determining costs under Federal awards
where amounts or types of comflcnsotion
appear unreasonable. Among such conditions
ore Ihe following:
(1) GompenslJ lion to members o[ nonprofit
organiz;.tions. truslees, direclors. a~sor.iRtes,
officers. or the immediote families thereof.
Determination should he made thot such
compensation is reQsrlOoule for the actuol
person..l services rendered wther than a
distribution of earnings in excess of cosls,
(2) Any change in an o~nllization's
compensation policy resulling in a
substantial increase in the organiZ:R tion's
level o[ compensetion, particularly when it
was concurrent with an increase in Ihe ratio
o[ Government awards to other activities of
the organi7.alion or any change in the
trentment o[ ailowaoility o[ specific types of
compensation due to changes in Government
policy.
e. Unallowable costs, Costs ",'hich are
unallowable under other paragTaphs of this
Allachment shall not be allowable under this
pnragrlJph solei}' on tile basis lhat they
constitute personal compensation.
r. Fringe benefits.
(1) Fringe benefits in the fonn of regular
compensation paid to emplo}'ces during
periods of aUlho;-ized absences from the job.
such as vacalion leave. sick leave, military
leave, aud the like. are allowable provided
such costs are absorbed b}' all organization
activities in proportion to the relative amount
o[ time or eHart actually devoted to each,
(2) Fringe benefits in the form of employer
contributions or expenses for social securit}'.
emplo}'ee insurance. workmen's
compensation insurance. pension plan costs
(see paragraph g. below), and the like. are
allowable provided such benefits are granted
in accordance witb established written
organization policies, Sucb benefits whether
trea ted as indirect costs or as direcl costs.
shall be distributed to particular awards and
other activities in a manner consistent with
the pallern of benefits accruing to the
indh'iduals or group of employees whose
salaries and wages are chargeable to such
awards and other adivities,
(3](a) Prnvisions [or a reser...e under a sel[-
inSurance program for unemployment
compensation nr workmen's compensation
are allowable to the exlentlhat the
provisions represent reasonable estimates of
the liabilitiec for such compensation. and tho
types of co...erage. extent of coverage. and
rales and premiums would have been
allowable had insurance been purchased \0
cover the risks. Ho.....e...er, provisions [or self-
insured liabilities which do not becnme
payable for more than one year after the
provision is made shall not exceed the
present value of the liability.
(b) Where an organization follows a
consistent polcy of expensing actual
payments to. or. on behalf of. employees or
former employees for unemployment
l:Ompensation or workmen's compansation.
such.pavments are allowable in the year of
-paymen-t with the prior approval of the
awarding agency provided they are allocated
to' all activities of the organization.
(4) Costs of insurance on the li\'es of
trustees, officers, or other employees holding
positions of similar reaponsibilit~' are
allowable only to the extent that the
insurance represents additional
compensation. The costs of such insurance
when the organization is named as.
I
A-122:5
beneficiary are unallowable,
g. Pension pion costs. .
(1) Go~ls of the orgallizalion's pensIOn plan
which are incurred in accordance with the
established policies o[ the organization are
allowable. provided:
(a) Such policies meet the test o[
reasonableness;
(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 principles as pre5uibed
in Accounting Principles Board Opinion No.8
issued by the American Institute 01 Gertified
Public Accountants; and
(d) The costs assigned 10 a given fiscal year
ere funded for all plan participants within six
months oiler the end of thaI year. However,
increases to normal and past service pension
costs caused by a delay in funding the
actuariallillbilitv beyond 30 days alter each
quarter of the y~ar t~ which such costs are
assignable ore unallowable.
(2) Pension plan termination insurance
premiums paid pursuant to the Employee
Retirementlncorne Security Act 01 1974 [Pub.
L. 9HOO) are allowable. Late payment
charges on such premiums ore unallowable.
(3) Excise taxes on accumulaled funding
deficiencies and other penalties imposed
under the Employee Retirement income
Security Act are unallowable.
h. Incentive compensation, Incentive
compensation tb employees based on cost
reduction. or e{fjcient performance,
suggestion awards. safety awards, etc.. are
allowable to the extent that the overall
compensation is determined to be reasonable
and such costs are paid or accrued pursuant
to an agreement entered into in good faith
between the organization and the employees
before the services were rendered. or
pursuant to an established plan followed by
the organization so.consistently as to imply,
in eHect. an agreement to make such
payment. .' ,
i. Overtime. extra pay shIft. ond multJshlft
premiums. See paragraph 27.
j. Severance pay. See paragraph 44.
k. Training and education QO~ts. See
paragraph 48... .'
1. Support of salaries and wages. -
(1) Gharges to awards for salaries and
wages. whether treated as direct costs or
indirect cosls. will be based on documented
payrolls approved by a responsible official(s)
of the organization. The distribution of
salaries and wages 10 awards must be
supported by personnel activity reports as
prescribed in subparagraph (2) below, except
when a substitute svslem has been approved
in writing by the th~ cognizant agency. (See
paragraph E.2 of Allachment A)
(2) Reports reflecting the distribution of
activity of each employee must be
maintained for all staff members
[professionals and nonprofessionals) whose
compensation is chargee!. in whole or in part,
directly to awards. In addition, in order to
support the allocation of indirecl costs. such
reports must also be maintained [or other
employees whose work involves two or more
funcitons or acti\'ities if a distribution of their
compensation between such functions or
octivilies is needed in the determination of
I
. 1 '~
t
Office of Management and Budget Circular A-122 (6/27/80)
the organiza tion's inuirect cos I ra le(s) (e.g.,
an employee engaged port-time in indirect
cost activities and pari-time in a direct
funclion). Reports maintained'by nonprofit
organizations to aatisfy these requirements
must meet the following standards:
(a) The reports must renect an a/ter-the-
fact determination of the actual activity of
each employee. Dudget estimates (i.e.,
estimates determined before the services are
performed) do not qualify as support for
chnrges to awards,
(b) Each report must account for the totol
activily for which employees are
compensated and which is required in
fulfillment of their obligations to the
organization.
(r.) The reports must be signed by the
individual employee, or by a responsible
supervisory official having first hand
knowledge of the activities performed by the
employee, that the distribution of activity
represents a reasonable estimate of the
actual work performed by the employee
during the periods covered by the reports,
(d) The reports must be prepared at least
monthly and must coincide with one or more
pay periods.
(3) Charges for the salaries and wages of
nonprofessional employees, in addition to the
'supporting documentation described in
subparagraphs (1) and (2) above, must also
be supported by records indica ting the tolal
number of hours worked each day
maintaioed in conformance with Department
of Labor regulations implementing the Fair
Labor Standards Act [29 CFR Part 516). For
this purpose, L'le tenn "nonprofessional
employee" shall have the same meaning as
"nonexempt employee," under the Fair Labor
Standards Act
[4) Salaries and wages of employees used
in_meeting cost sharing or matching
requirements on ewards must be supported in
the same manner as salaries and wages
claimed fOi reimbursement from awarding
agencies.
i, Contingency prol'isions. Contributions to
Ii contingency reserve or any similar
provision made for events the occurrence of
which cannot be fcretold with certaintv es to
lime, intensity. or with an assurance of their
happening, a;e unallowable, The term
"contingency reserve" excludes self.
insurance reserves [Eee paragraph 6.f.(3) and
16.a.(2Jld)): pension funds (see paragraph
6.[g)): and reserves for normal severance pay
(see paragraph 44.[b)(l),
8. Contributions. Contributions and
donations by the organization to others are
unallowable,
9. Depreciaiion and use allowances.
a. Com pens a lion for the use of buildings,
other capital improvements, and equipment
('~ }land me;,' be made through use
?!i(l.....an<::es or dt'preciation. However. excepl
as prnvided in paragraph f. below a
comuinatiol1 of the two methods Olav not be
\Osed in Ctln:\p.ction with a single class of
fi"ed as.ets (e.g., b~dldings. office equipment.
cUlllputer equipment. etc.).
b. The competa lion of use allcwances or
r.'~pr!'ciation shall be based on the
~c,!l!isilion cost of the assets involved. The
ur.oc:silicn cosl of an asset co"alcd Ic the
or~anizaticn by a l}lird part~' shall be Its fair
market value at the time of the donation.
c. The computalion of use allowances or
depreciation will exclude,
(1) The cost of land:
(2) Any portion of the cost of buildings and
equipment borne by or donated uy the
Federal Governmenl irrespective of where
title was ori!:inally vested or where it
presently resides: and
(3) Any portion of the cost of buildings and
equipment co.~tributed by or for the
orl<anizatiun in satisfaction of a stAtutory
miltching retiremenl.
d, Where the use allowance method is
followed, the use allowance for buildings and
improvement (including land improvements
such as ptlved :,arking areas. fences, and
sidewalks) will be r.omputed ot an annual
rate not exceeding two percent of ocquisilion
cost. The use allowance for equipment will
be compuled al an annual rate not exceeding
six and two-thirds percent of ncquisilion cosl.
\Vhen the use allowance method iR used for
buildings, the enlire building must be treated
as a single asset: the building's components
[e.g. plumbing syslem. heating and air
conditioning. etc.) cannot be segregated from
the building's shell. The two percent
limitation. however, need not be applied to
equipment which is merely auached or
fastened to the building but not permanently
fixed to it and which is used as furnishings or
decorations or lor specialized purposes (e,s.,
dentist chairs and dental treatment units,
counters, laboratory benches boiled to the
Door, dishwashers.'carpeling, etc.). Such
equipment will be considered as not being
permanently fixed to the building if it can be
removed without the need for costly or
extensive allera tions or rep;;irs 10 the
building or the equipment Eguipment that
met'ts these crileria will be subject to the six
and two-thirds percent equipment use
allowance limitation.
e. Where depreciation method is followed.
the period of useful service (useful life)
established in each case for usable capilal
essets must take into consideration such
factors es type of construction, nat:Jre of the
equipment used. technological developments
in the particular program area. and the
renewal and replacement policies followed
for the the individual items or classes of
assets involved, The method of depreciation
used to assign the cost of an Rsset [or group
of assets) to accounting periods shall renect
lhe pattern of consumption of the asset
during its useful life. In the absence of clear
evidence indicating that the expected
consumption cf the asset will be significantly
sreater or lesser in the early porlions of its
uscfullife then in the later portions. the
s:raight-line method shall be presumed to be
Ihe appropriate method. Depreciation
I11clhods once used shall nol be changed
unless ~pproved in advance by the cognizant
Fecp.ral agency. VI/hen the deprecifslion
method is introduced for application to assets
previously subject to a use allowance. the
combination of use all'CIwances and
oeprecialion applicilble to such assels must
not exceed the to\al acqui;ition cost of the
:lssets. V\'~en the :Jerrecialion method is useu
hr huildinJ:s, a bllildin~'s shell n'1')' be
A-122:6
scbregaled from each building component
(e.g.. plumbing system, heating, and air
conditioning syslem, etc.) and each item
depreciated over its eSlima'ed useful life: or
the entire building (i.e.. the shell and all
c.omponents] may be treated as e single asset
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 Buch
assets Ihal, under para!;raph e. above, would
he viewed as fully depreciated. However. a
reasonuble use ollowance may be negotinted
for such assets if worranted afler taking into
consideration the alTlount of depreciation
previously charged to the Government, the
estimated useful life remaining ottime of
negotiation, lhe effect of any increased
maintenaoce charges or decreased efficiency
due 10 age, and any olher factors pertinent to
..the utilization of the asset for the purpose
contemplated,
g. Charges for use allowanceR or
depreciation must be supported by odequate
properly records and physical inventories
must be taken at least once every two years
(a statiltical sampling basis is a~ceptable) 10
ensure lhat assets exist and are usable and
needed. When the depreciation method is
followed, adequa Ie de:-,recia lion records
indicating the amount of deprecin lion taken
each period musl also be maintained.
10. Donations
a, Services received,
(1) Donaled or volunteer services may be
furnished to an organization by professional
a!ld technical personnel. consultants, and
other skilled and unskilled labor. The value
of these services is not reimbursable either as
a direcl or indirect (;osl.
(2) The value of donated services ulilized
in the performance of a direct cost aclivity
lill..ll be considered in the determinalion of
lhe organization's indirect cosl rate(s) and.
accordingly, shall be allocnted a
I'rcportion~tc share of applicable indirect
c.osts when the following circumstances exist:
(a) The agg~egale value of the services is
Olillerial;
(b) The services are ~upported b~'~
significant amnt!nl of Ihe i~lirecl custs. _ .
incurred bv the organiza lion;
Ic) The dir~cl cost activity is not pursued
primarily for the benefit of lhe Federal
Go\'(,mmanl.
PI In those instances where there is no
b..sis for delermining the fair market value of
the services rendered, the recipient and the
cognizant ogeney shall negoli,.le an
appropriate aiioculion of inuirect cost to Ihe
sen'ices,
(4) \'I-'here don"leu services direclly benefit
a ;:roject supported by an a v,ard, the indirect
costs allocaled to the services ",ill be
con~idered as a part of the tolal costs of the
projecl. Such indirecl costs may be
reimbursed under the award or used to meet
cost sharing or malching requirements.
(5) The v,due of t!'le donated ser\'ic~s may
be used to mecl cost sharing or matching
requirements under conditions described in
1'.llnchment E, OMB Circular i"\o. A-l10,
\\'here donated services ure trealed as
indirect cosls, indirecl cost rates will
s"parill~ the value of the donotions so lhal
... ~ (
I
Office of Management and Budget Circular A-122 (6/27/80)
reimbursement will not be made.
(6) Fair market value of donated services
6hall be computed as follows:
(a) Ilates far volunteer services, Rates for
volunte~rs shall be consistent with those
regular rates paid for similar work in other
activities of the organization. In coses where
the kinds of skills involved are not found in
the other activities of the organization, the
rates used shall be consistent with those paid
for similar work in the labor market in which
the organization competes for such skills,
(b) Services donated by other
organizations, When nn employer donotes
the services of an employee, these services
6hall be valued at the employee's regular rate
of pay (exclusive of fringe benefits and
indirect costs) provided the services are in
the same skill for which the employee is
normally paid. If the services are not in the
same skill for which tbe employee is norm oily
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 donated use
of space may be furnished to an organization.
The value of the goods and space is not
reimbursable either as a direct or indirect
cost.
(2) The value of the donations may be used
to meet cost sharing or malching share.
requirements under the conditions described
In Attachment E. Ohm Circular No. A-110.
The value of the donations shall be
determined in accordance with Attachment
E, Where donations are treated as indirect
costs, indirect cost rates will separate thw
value of the donations so that reimbursement
will not be made,
11, Employee marole. health. and welfare,
costs and credits. The costs of house
publications, health or first-aid clinics, and/
or infirmaries. recrea tional activities,
employees' counseling services, and other
expenses incurred in accordance with the
organization's established practice or custom
for the improvement of working conditions,
employer-employee relalions. employee
morale, and employee performance are
allo\\'nble. Such costs will be equitably
apporlion~d to all activities of the
organization, Income genera led from any of
these activities will be credited to the cost
. thereof unless such income has been
irrevocably set over to employe~ welfare
orga niza lions.
12, Entertainment costs. Costs of
amusement. diversion, social activities,
ceremonials, end costs relating therelo, sucl,
as meals', lodging. rentals. transportation, and
gratuities arc unallowable (but see
p::ragr?phs 11 and 25).
13. Equipment and ather capilal
e.\pellditures.
a. As used in this parngraph, the following
Lcr.r..;;.ha\'clhe.mG'lninm; l!.~.UQrth below:
(1) "Equipment" means an article of
nonexpcndable tangible personal property
ha\'ing a useful life of more than two "cars
arl~ an acquisition cost of $500 or mo;e per
un,\. An organization may use its own
definition provided that i"t at least includes all
~onex~endable tangible persona! properly /IS
uefmea herein.
(2J "Acqui!ition cost" means the net
invoice unit price of an item of equipment,
including the cost of any modifications,
attachments, accessories, or auxilinry
apparatus necessary to make it usable for the
purpose for which it is acquired, Ancillary
charges, such as taxes. duty, protective in"
transil insurance, freight, and installation
shall be included in or excluded from
acquisition cost in accordance with the
organization's regular wrillen accounting
practiceR,
(3) "Special purpose equipr.lenl" means
equipment which is usable only for research,
medical. scientific, or technical activities.
Examples of special purpose equipment
include microscopes, x-ray machines. surgical
instruments, and spectrometers.
(4) "General purpose equipment" menns
equipment which is usable for other than
research, medical. scientific, or technical
activities. whether or not special
modifications arc needed to make them
suitable for a particulnr purpose. Examples of
general purpose equipment include office
equipment and furnishings, air conditioning
equipment, reproduction and printing
equipment, motor vehicles. and automatic
data processing equipment.
b, (1) Capital expenditures for general
purpose equipment are unallowable os a
direct cost except with the prior approval of
the awarding agency.
(2) Capital expendilures for special purpose
equipment are allowable as direct costs
providad 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" bl:ildings. or equipment which
materially increase their value or useful life
arc unallowable as a direct cost except with
the prior approval of the awarding agency.
e. Equipment and other capital
expenditures are unallowable as indirect
costs. However, see paragraph 9 for
allowabilit\, of use aliowances or
depreciatio"n on buildings, capital
improvements, and equipment. Also, see
paragra~h 42 lor ellowability of rental costs
for land, buildings. and equipment.
14. Fines and penalties, Costs of fines and
penalties resulting from violations of. or
fenure of the organization to comply with
Federal. State. and local laws and regulations
are unallOWable except when incurred as a
result of compliance with specific provisions
of on award Dr instructions in writing from
the awarding agency, .
15. Fringe benefits. See paragraph 6. f.
16. Idle facilities and idle capacity.
a. As used in this paragraph the following
terms have the meanings set forth below:
(1) "Facilities" means land and buildings or
any portion thereof. equipment individually
or collectively, or any other tangible capital
.sse\. where'/er located, and whether owned
or h~ased br Ihe oril,mization.
(2) "Idle faciliti~s" means complc,elv
ulllI~d facilities Iha: arc excess to the'
organizalion's current needs.
(:J; "Idle CJpaci:y" means the u"\l~ed
t
A-122:7
capndty of partinlly used f<Jcililies. It is the
difference between tna! which a facility
could achieve under 100 per cent opera ting
time on a one-shift basis less operating
interruptions resulting- from time lost for
repairs. setups. unsatisfaclory materials. ana
other normal delays, and the extent to which
the facility w.s actoally used 10 meet
demands during the accountinll period. A
multishifl basis may be used if it can be
shown that this amount of usage could
normally be expected for the type of facility
illvo!veu.
(4) "CostR of il11e fac.llilies or idle capacity"
menns COstR such liB maintenance. repair,
housing, rent. and other related cos\.'!: e.g.,
properly taxes, insurance, and deprecia lion
or use allowances.
b. The costs of idle facilitJes are
un"lIo~oble except to the extenttb2l:
(1) They Rre unnecesRary to meel
nuctualions in workload; or
(2) Although not necessary to meet
nuctuations in workload, they were
necessary when acquired and arc now idle
because of changes in program requirements.
efforts to achieve more economical
operations, reorganization, termination, or
olher causes which could not have been
reasonably foreseen. [:nder the exception
slated in tbis subparagraph, costs of idle
facilities arc allowable for a reasonable
period of time, ordinarily not to exc~ed one
year, depending upon the initialive taken to
use, lease, or dispose of such facilities (but
see paragrnphs 4i.b. and d.).
c. The costs of idle capacity are normal
costs of doing business and are a factor in the
normal nuctualions of usage or indirect cost
rates from period to period, Such costs are
allownble, provided the capacity ie
reasonably anticipa led to be necessary or
was originally reasonable and is sl:bject to
reductiQn or elimination by subletting,
rcnting. or sale, in accordance with sound
business. economics. or security practices,
Widespread idle capadt). throughout an
entire facility or among a group of assets
having substantially the same function may
be idle facilibes. .
17. hd.,p.;ndcnt rescU{Ch and development
lRcservt:d\. ..
18. Insurance and indemnification. I
a. Insurance includes insu~ance which the
organization is required to carry, or which is
approved, under the terms of the .,ward and
any other insurance which the organization
maintains in connection with the general
condt:ct of its operations. Thi~ paragraph
docs not apply to insurance which represents
fringe ben~fits for employees (zee pa~agraph
6.f. and 6.g.,:!}).
(1) Costs of im:lrsnce r~quired or
ar-proved. and maintained, pursu~nt to the
award are allowable.
(~) Costs of other inS1lrance mHintained bv
the orgJnization in conneclion wi:h the .
general conduct of its opel'alions are
ulluwable subject to the following Iimita lions.
(a) Types and extent of coverage shall be
in accordance with sound busirless practice
snd the r~les and premiums shall be
reasonable under Ihe circumstances.
(bl Cnst3 Illlowed for business in:eHuplion
or other similar insurance shall be limited to
. (
\
I
Office of Management and Budget Circular A-122 (6/27/80)
exclude coverage of managern~nt fee~.
[c) Costs of insurance or of any pr<)"i~iGn~
for a reserve covering the risk of loss or
dnlllage \0 Government properly a,e
illlowable only la !he exto.nt thai the
orll~nizati!ln i~ Ii"hle for such lC's~ 01' ';;lma2'~'
(J) Provi~ions for 8 reserve unJer a ~elf-
illsura:.ce pr"l;ram arr: allowable to the
extent thattrpe~ of coverage. extent of
coverage. rn'e~. ahd premiums woult! hHVp.
been allowed had i!'.su~i1nce been purchased
to ClJv.:r the ri~k6. However, proviilL:lll for
known or reasonablv estimH'ed self.i;l~ured
liilbilities. which do 'not become paY'3uie for
more than one yenr after the provisior. i~
made shall I;ot exceed the present valoe of
the !iability.
(c) Costs of insura nce on the I(ves of
trustees. officers. or other e:nployees holding
positions of similar responsiui!ilies arc
allo',';able only to the extenl L~clthe
insurance represents additional
compensation [see pnragraph 61. The CllSt of
such insurance when the o~anizalion is
identified as the beneficiary is unallllw~ble.
(3) Actuallosse~ which could have been
covered by permir.nible inslJra:1ce [through
lne purchllse of insur:ll::;e or a self.insurance
program) are unalluwable unless expressly
provided for in the awarn. except:
(a) Costs incurred ber.ause of losses not
covered under nomin:!l deductible insurance
coverage provided in hcping with sou:1d
business practice are allowable,
(b) Minor losses not coverc:d by ins\lrance,
such as spoilage. breakag?. and"
disappearance of supplies, which occur in the
ordinary course of operations. are allowable,
b, Indemnifica tion includes securing the
organization ogainstliabilities to third
persons end any other loss or dameg... not
compensa ted by insurance or otheJ-wise. The
Government is obligated to indemnify the
organization only to the exlent expressly
provided in the award,
19. Interest. fur:d raising. and inl'estment
r::a,~:Jgcment costs.
a. Costs incurred for interest on borrowed
capital or temporary use of encowment
fund~. however represented, are unallowable.
b. Costs of orga:1i7.ed fund raising,
including fjnancial campaigns. r.IlLio\\'menl
d,ives. solicitation of gifts and bequests. and
similar expenses incurred oolr\y to raise
capital or oblain contributions are
unallowable.
c. Costs of investment t;ounsel and staff
and similar expenses incurred saleh' 10
enhance income from l;lvest:nents ~re
unallowable,
d. Fund raisir:g and investment activit:e5
5nall be allocoled an appropriate sh~rp. of
indirect casts under the conditio:1s described
ir: paragraph B of Alt1lchment A.
20. Labor relations costs. Costs incurred in
mainlaining sillisfiJctcry re:ations be\.,..'een
the organizntion and its empl()vees,:ncluclin~
costs of labor managemenl o.o~lOIiltees, .
e;nployee publicotions. and other reJatee
activities are allowable,
21. Losses on other a1<'Ords. Anv excess of
costs over income on any aWilrd i"s
unallowable a8 a cost of en\' olher aware.
Tnis includes. but is not limited 10. the
ccgu,izanon's conlributed portion by reMon
of r.l'st sharins ~!:reement3 or any
underrecoveries through negotiation of lump
surn~ fnr. or ceilings I'n. indir~ct co~ts.
:2. /I.Ja/n!encnce and TPflo/r costs. C,,~ts
inc:urn:d for np.c"~sary maintenance. rrpair.
()f upkeep of buildings and equir>mellt
[incl,.ding Go"~mme!l: pr:}l'erty unless
o:herl'Ji~e provided for) which neither a,'d to
t~e permanent ,'alup. of the proper:y nor
appreciably prclong its inte:1deJ life. but
ke!'p it in an emcicnt operati:1g conrldion. are
nllo....nhle. Costs il~clIrred lor il"I'r"vl'ments
whic.h addlo t!le perm:Jneut value of lhe
ruilc;ing5 and el)uipme!lt or appreciably
prolong their intc!lded life shall be Irealed as
cUj'ital exp~ndit:Jres (see pRr:!graph 13).
23. Muter/a!s and supplie.,. The cost~ of
materials and sl.pplies necessary 10 ca~ry out
nn award are al:owable, SUl:h costs should be
c:harged att!leir actual prices after deducting
all cash di~counls, lrode disr.ounls, relHttes,
and ollowances received uy the organiz:!tion.
Withdrawals from gener aJ slores or
stockrooms should be charged at co~1 under
anj' recognized melhod of pricing
consistently applied. Incoming transportation
chargc:s may be a proper part of material
cos:. Materials and slIppEes charge,]' as il
direct cost should include only the materia Is
and supplies actuall~' used for the
performance of the contract or grant. and due
credit should be given for ony excess
materiols or supplies retained. or return..d to
vendors.
24. Meetings, conferences.
a. Costs associated with the conduct of
meetings. and conferences. and include the
cost of renting facilities, m~als. speJkers'
fees, and the like. But see paragraph 12,
Entertainment costs, and paragraph 29,
Participant suppert casts.
b. To the extent thnt these costs are
identifiable ",'ilh a partlr.ular cost objeclive.
they should be charged to that objective. (See
paragraph B, of Allachment A.) These costs
a~e ailowable provided that they meet Ihe
general tests of allowa ble. shown in
Altachment A 10 Ihis Circular.
c. Costs of meetings ar:d conferences held
10 conduct the general Oldministration of the
organization are allowable.
25. Memberships, subscriptions. and
professional activity costs.
a. Costs of the organization's membership
in civic, business, technical and professional
or~anizalions are allowable.
b. Costs of the organization's subscriptions
to civic, business. professional. and technical
periodicals are allowable.
c. COStS of allendance at meetings and
conferences. sponsored by others when the
primary purpose is the disscmina tion of
ted:nicnl informa:ion, <lre allowab!e. This
inr.iu~es costs of meals, tral1s?ortatiun, aOld
other items incidental to suc:h attend,!nce.
25. Orgonizotion costs. Ex"enditure~, such
<.IS incorpora:ion fe!:s, brokers' ft!!:s, fees to
promolers, orga!lizer~ or manage.-nen:
con5;ultilnls. o:tomc\'s. account;2nts nr
inve~tment cO\lns~l~rs, wh('ther or ~ot
!:n~I)Joyees of the organiz8 tion. in connp.ction
will, eSI<lblishment or reorgan;z:ation of an
organ::liJtion, arc un:lllowable except with
prior oppruval of the awarding agency.
27. GI'crl/me, exlra-po.l' sll/ft, and
I
A-122:8
mu/!/shiff 1'1( '''/lIms. Premiums for 0\ erlinll'.
e:",a'rilY sh,fts. allli tnlJIlishifl work arc
lILu\\'~\;1c: oni)" wI:h lhe prior "l'pro.,,1 of :I:c
{J waruing :igrncy e>..ccpl:
a. \~'hen ncce~~MY 10 cope with
er.le~gen,:its. such:!! lhosc lesulting frum
lP.l:;.j.:;;-.~:"I. na\ll1ill di~ash'rs, brCil~du\\"n~ of
pql~ip~'cnl. or (\(,;c:\!=i0ncd opcr;)tj~lnal
\':'ltlr~~(:l.:s af 1I sporn die nJlure.
h When (:r:lp;O.l.CI~S arc perlllr"liof{ intlir(;ct
rune:i'.),," s"ch <JS .il!ministrutioll,
rT~~IiI.l!('nancr.. 01 ncc{Jun~ing.
c. In ,hr p"rforrtlililce of tests. Iillnrlllory
prllCl,Jures. ur ulher simi;i1r operutions whicn
,,1't~ r.ni,I:i11101lS in nl1turc and cannot
re;'s"t.P.~;:" be illterrupted or othcrwi~'!
COI1\~I:~:! :.(J.
d. When 10w"l overall cost to the
(;o'..('r~:llcDI will result.
20. l',~gc charge. in professional /ourno!s.
PilGC c:I"'rges for professional jouronl
publications are allowllble as u nece:;sary
p;"l or research cos\s. where:
H. The rese~rch pupers report work
~lll'rllrll!.:l L..\' lhe Go\'ernment; and
b. The c\;argo.s are levied impllrtiu!ly on al!
re:a;ilrd, FJpcrs published by the jourrta~.
whelh'~r or no: by Governmc:nl"~ponsored
aulhnrs.
29. f'artic;/poill support c[>sls. Par:icipilnt
support costs arc direct cosls for items such
as slipend. or subsistence allowances. travel
vllowunr.rs. "nd registration fees paid to or
un nehal[ of partic:ipants or trainees [but not
employees) in connection with meetings,
conferences, sympr.sia, or traini!lg projec:s.
These costs ilre allowable wilh the prior
<tpproval or the awarding agency.
30. l'u:.31;t costs.
;J. Cc,sls or (i) preparing di:lc.losures,
reports. and other documents required by the
:!"-~,rd ,JI1d of searching the art to the extend
necessary to make such disclosures. Iii)
prepuring documents and any other patenl
costs ir: connection wilh the filing and
prosecu:ioc of a United states p:,lent
apr]iC:Cllir,n where title or roynlly-free license
i~ reqllir;,d by tho. Governmf'nl to be
cO:Jvcyed io the Government. Ilnd (iii) geneml
counseli:.g services relating to pateh~and
Cllpyright mHtlers. such as ~vice on piltenJ
and copj'ri~ht Jaws. regulations, clauses, and
employee agrc~ments arc allowable [bllt see
pllr"g~aph 34).
b Cust of preparing disclos1Jres, reports,
Jlld other documents a"d or searching the art
10 Ihe rxlent necessary 10 make disr.losures,
if not required by the a w/lTd. ue
unallowable. Costs in connection with (i)
filing and proseculing un)' foreigo patent
application, or (ii) any United Slales pillent
;,pplicatio01. where the Hwa,d docs not
recJI,ire conveying title or a royally.free
hc('nse tll the Government. are unallowable
l,d~o ,er. parilvraph 43).
31. Pension plo!!s. See paragraph 6. g.
32. Plant sec::ritl' costs. Necessar\'
e>-penses incurred' to compl)' with "
Goverr:ment securily rp.quirements or for
facilities protection. including wages.
unifol ms. and equipment of personnel are
ullowlIble.
33. I'reol1'ord costs. Preaward cosls Bre
those incurred prior 10 the effp.ctive date of
tll(, ","..ard directly pursllant to lhe
. ,
I
Office of Management and Budget Circular A-122 (6/27/80)
negotialion ond in anticipation of the ~ward
whell' suc.h co~ts i$ necessary 10 comply with
:he proposed delivery schedule or period of
performance. Such cosls Are allowable only
10 ;he e:<lenl that lhey would hAve been
~ilo"'able if incurred ofler the dAte of the
~"'Q:'d Imd only with the written opprov;.! d
the ~wardillg ngenr.)'.
34. IJmfcssillnal sen'icc costs,
a. Costs of profl'~sionnl and consultont
services renclereJ hy persons wbo a~c
r.:f'''ll>ers of A particular profession or posses~
a ~p~";al skill. <lIlJ who arc nol office~s or
e~i,iuyees of the orghni7,ation, arc a!!owable,
Subject 10 b, c, and d, of this pHragraph when
rp.asOI,able in r'~lation.to Ihe services
rendered and whe!l not contingent IIpon
rt'l:over" of the costs from the Government.
b. In detcrming the allowability of r.osts in
B p1ll'ticular Cilse, no single factor or any
speciHI combination of factors is necessaril)'
determinative, However, the following
fut;lors are relevant:
(1) The noture and seolle of Ihe service
rendered in relation to the service required.
(2) The necessity of contracting for the
sen'ice, considering the organization's
c:apahility in the pnrticulnr area.
(3) The past pattern of such costs,
parlicularly in the years prior to Governmcllt
awards.
(4) The impact of Government aWards on
tnc organization's business (i.e.. whal new
prohlems have arisen).
(51 Whether the proportion of Government
work to the organization's total business is
su.:h as to infjuence the organiza tion in favor
of incurring the cost. parlicularly where the
services rendered are not of a continuing
nature and have little relationship to work
under Government grants and contracts,
(0) Whether the service can be performed
more economically by direct employment
ralher than contracting.
(7] The qualifications of the individual or
concern rendering the service and the
customAry fees charged, especially on non'
Government awards.
(0) Adequacy of the contractual agreement
for the service [e.g., description 0; the service,
estimate of time required. rate of
compensation. and termination provi,ions).
c. In uddition to the factors in p&ragraph b
<lbove, rr.:ainer fees to the allowable must be
Sllflported by evidenr.e of bona fide sen,jces
available or rendered.
d. Cost of 12g<l\' accounting. and consulting
~erl'ices. and related costs incurred in
conn~c\ion wilh defense of antitrust suilS,.
and the prosecution of clai.:ns against the
Government. are lIllallowAble. COSl~ of legal.
<lr.~uunting and consulting services, and
related cosls. incurred in connection with
palent il;fring'!mentlitigation. organizalion
and reorga!'lizotion. are unallowable unless
otherwise pnwiderl fOJ in the aWArd (but see
parAgraph 47e).
35. Profits and lasses on disposition of
depreciable propert)' or other capital assets.
a, (1) Gains and losses on sale, retirement,
or other disposition of ciepreciable properly
shdl be inclurled in the vear in whicn thev
o,,:;ur as cred:'., or charse~ to cost groupi~g[s)
in which the depreciation applicable to such
property was included. The amount ;.f the
g;dn or loss 10 be inr.luded as a credit or
dlilrf,e 10 the ap[1ropriate cosl grouping($)
sh;dl be Ihe dilfercncc bt;i ween the amount
rl'nlized on the property and the
lJrlJr.preciated basis of the property.
(2) Gains and losses on the disposition of
ch'f.reciable properly sha II not be recognized
ns II separale credit or charge under the
fniluwing conditions.
Iii) T!le gnin or loss is processed through u
dcprecia liun reserve account and is renecleJ
ill the Jeprecia!ion ullowalJie undcr
pilro~roph 9.
(l.) The property is given in exchange as
pari of the purchase price of a similar ilem
and the gain or lo~s is taken inlo aGcount in
dc\erlllining the depreciation cost bosis of llie
new item.
Ic) A loss results frum the failure to
maintain permissible insurance, except nB
otherwise pruvided in pllrllgraph 10.a.[3).
(d) Compensation for the use of the
prC'perty was provided through use
allowances in lieu of depreciation in
occordnnce with paragrflph 9,
(e) Gains and losses orising from mass or
extraordinnrv sales, retirements, or other
disposilions ~hall be considered on a cose-
b,'.c,,~e basis.
'b. Gains or losses of any nalure arising
from the sale or exchange of property olher
than the property covered in paragrnph a.
abave shall be excluded in computing awara-
costs.
35. Public informaliun sen'ice costs,
a. Public information service costs include
the cost associated 'with pamphlets, news
releases, and other forms of information
services. SUGh costs. are normally incurred to:
(1) Inform or Instruct indh'iduals, groups, or
the general public,
(2) Interest individuals or groups in
pnrticipating in a service program of the
01 gsnization.
(3) Disseminate the results of sponsored
and nonsponsored activities.
b. Public info;malion service cosls are
allowable as direct costs with the prior
a;::pro\'al of th~ awarding agency. Such costs
ore unallowable as indirect costs.
37. Publication and printing cost!:.
a. Publication cost, include the costs of
printing [including the proces.es 'of
composi:ion, plate-making. press work,
binding, and the end products produced by
Auc:h processes), distribution, promotion,
mailins, and general handling.
b. If the~e costs are not identifiable with a
particular Cosl objective. they should be
allocated as indirect costs to fill benefiting
acli\'itics of the organization.
c. Publication and printing cosls are
unuilowable ns direcl costs except with the
p~ior npproval of the awnrding agency.
d. The cost of page charges in journRls is
addressed pAragraph 28.
30. Rearrangement. and alteration costs.
Costs incurred for ordinury or normal
rearrangement and alteration of facilities ore
alluwable. Speciol arrangement and
alteration costs inc~rred specifically for the
project are Rllowable with the prior approval
of the awarding IIgency.
39. Reconversion casts. Costs incurred in
the restoration or rehabilitation of the
organlultion'a [adlitirn; to approximately the
,
A-122:9
some condition exisling immedia lely prior to
commencement of Governmenl awards, fair
wear and tear excepted, are allowoble.
40. Recruiting costs. The following
recruiting costs are allowable: cost of "help
wanted" advertising, operating costs of an
employment office, costs of operating an
educational testing program, trnvel expenses
including food and lodging of employees
while engaged in recruiting personnel. travel
cosls of applicants for interviews for
prospective employment. and relocntion COSIS
incurred incident to rl'cruilmenl of new
employees [see porograph 41 c). \^,1here lhe
organization uses employment agencies,
costs not in exccss of standord commercial
rates for such aervices are allOWAble.
41. Relocation costs,
a. Relocation costs ore cosls inciJenlto the
permanent change of duty assignment [for on
indefinite period or for a stuted period of not
less than 12 months) of an exi~lin8 employee
or upon recruitment of 0 new employee.
Relocation costs ore allowable, subject 10 the
limitation described In paragraphs b, c, and d,
below, provided that:
[1) The move Is for the benefit of the
employer.
(2) Reimbursement to Ihe employee is in
occordance with on established wrillen
policy consistently followed by the employer.
(3) The reimbursement does not exceed the
employee's octual [or reasonably estimated)
expenses.
b. Allowable relocation costs for current
employees ore limited to the following:
(1) Tne costs of transportation of the
employee. member1i of his immediatc fomily
nnd his household, and personal effects to the
new location.
(2) The costs of finding a new home. such
as advance trips by employees and spouses
10 locate 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 as brokerage, legal,.
nnd appraisal fees, incident to the disposition
of the employee's former home. These cosls,
together with toose described in (4) below,
are limited to 8 per cent of the"'sales price of
the employee's formW bome. "
[4) The continuing costs of ownership of
the vacant former borne after the settlement
or lease date of the employee's new
permanent home, such as maintenance of
buildings and grounds (exclusive of fixins up
expenses), utilities, taxes, and property
insurance.
(5) Other necessary and reasonable
expenses normally incident to reloca lion,
such as the costs of canceUins an unexpired
lease, disconnecting and reinstalling
household appliances. and purchasing
insurance against loss of or damages to
personal property. The cost of cance1lins an
unexpired lease is limited to three limes the
monthl" rentaL
Co Allowable relocation costs for new
employees arc limited to those described in
(1) and [2) af paragraph b, above. When
relocation costs incurred incident to the
recrui:ment of new employees have been
allowed either IlB a direct or ifldirect cost and
the employee roaigns for reasons within his
. . \
....--#
. ,
. "\
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 costs 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 nnd the costs do
not include costs of transporting household
goods,
d. The following costs related to relocation
are unallowable:
(1) Fees and other costs associpted with
acquiring a new home,
(2) A 1055 on the sale of a former home,
(3) Continuing mortg;,gc princ:pal and
interest payments on a home being sold.
(4) Income taxes paid by Cin employee
related to reimbursed relocation costs,
42. Renlal casts.
a. Subject to the limitations describen in
paragraphs b. through d. of this paragraph,
rental costs are allowable to the extent that
the rates are reasonable in light of such
factors as: rental costs of comparable
property, if any: market conditions in the
area: alternatives available: 'nnd the type, life
expectancy, condition, and value of the
propp.rty leased,
b, Rental costs under sale and leaseback
arrangements lire allowable only up to the
amount that would be allowed had the
organization continued to own the property.
c, Rental costs under less-than-length
leases 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
undp.r which one party to the lease agreement
is able to control or substantiallv infiuence
the actions of the other. Such lc~ses include.
but are not limited to those bet"..een (i)
divisions of an organization: (ii) organiz.ations
under r.ommon control through common
officers, directors, or members: and (iii) an
organization and a director, trustee, officer.
or key p.mployee of thp. org;;ni;:;ation or his
immediate famiiy either directly or through
corpnralions. trusts. or similar arrangements
in which they hold a controlling interest.
d. Rental costs under leases which create a
material equity in the lea see prop"rly are
allowable only up to the amow:; thut would
be a!lowed had the organiza tion purr.hased
the property on the date the lease agreement
was executed: e.g., depreciation or use
allowances, maintenance, tax~s, insurance
but excluding interest expense and oil,er
unallowable costs, For this purpose, a
material equity in the properly exists if the
lease in noncancelable or is cancelable o..)v
upon the occurrence of some remote -
contingency and has one or II) ore of the
following characteristics:
(1) The organization has the right to
purchase the property for a price which at lhe
beg;nning of the lease appears to be
substantially less than the probable fair
market value at the time it is permitted to
purchase the property (commonlv called a
lease with a bargain purchase option):
[Z) Tille to the properly pas~es to the
organization at some t:me during or afler the
lease perioc.:
(3) The term of the Jease (initial term plus
periodF covered by bargain renewal options,
If any) is equal to 75 per cent or more of the
economic life of the leased property: i.e.. the
period the property Is expected to be
econor.lically usable by one or more users.
43 noyalties and other costs for use of
pal ".r and copyrights.
a. J ;yalties on a patent or copyright or
amortization of the cost of acquiring by
purchase a copyright. patent, or rights
thereto. necessary for the proper performance
of the award are allowable unless:
(]) The Government has a license or the
right to free use of the plttent or copyright.
(2) The patent or copyright hss been
adjudicated to he invalid, or has been
administrativelv determined to be invalid.
(3) The palen't or copyright is considered to
be unenforceable.
(4) The patent or copyright is expirr.d.
b, Special care should be exercised in
determining reasonableness where the
royalties may have been arrived at as a result
of less then arm's length bargaining: e.g.:
(1) Royalties paid to persons. including
corpora tions. affilia ted with the organiza lio:l,
(2) Royalties paid to unaffiliated parties,
inciuding corpo~ations, under an agreement
entered into in contemplation that a
Government awerd would be made.
(3) Royalties paid under an agreemenl
entered into after an award is made to an
organization.
c. In any case involving a patent or
copyright fonnerly owned by the
organization, the amount of royalty allowed
should not exceed the cost which would have
been allowed had the organization retninp.d
title therelo,
44, Severance pay.
a. Severance pay. also commonly referred
to as dismissal wages, is a payment in
addition to re~ular salaries and wages. by
organizations to workers whose employment
is being terminaled. Costs of severance pay
are allowable only to the extent that in each
case, it is required b~, (i) law, (ii) employer-
employee agreement, [iii) est:JbJished policy
tha! con:;~itules, in effect, an implied
agreenent on the organi::ation's part. or (iv)
circ~m5ta:lce~ of t::e particular employment.
b. CC'Sts of severance p:lyments are di\'ic!eu
into two categories as follows:
(1) Actual normal truno\'er severance
paym!:nls shall be allocated to all ar.ti\'ilies:
or, where the organization provides for a
reserve for normal severanc'lS such method
will be acceptable if the charge to current
operations is reasonat,Je in light of payments
actually made for normal sevp.rances over ~
representative past period, and if amourds
ch~ri?:?d are alloc~ted to all activilies of the
organiza tion.
(2) Abnormal or mass severance puy is of
such a conjectural naiu~e that measurement
of costs by means of an accrual \'Jill not
;;chieve equity to bolh parties. Thus, accruals
fo~ this pu'pose are not allo,,'able. However.
th~ GovernmE:nt recogni7.e~ i~s obligatiun to
participate to the extent of its fair share, in
any specific payment. Thus, allow<lbility will
be considered on a case-oy-case basis in the
event of nccurrenr.e.
45. Speciali:'.ed ser'!/ce facilities.
a. The cosls of services provided by hi"hiy
-'
A-122:10
complex or specialized facilities opernl~d by
the organization. such as electronic
computers and wind tunnels, are allown ble
provided the chaTFes for the services meet
the conditions of either b. or c. of this
paragraph and, in addition, take into account
any items of income or Federal financing thnt
qualify as applicable credits unuer paragraph
A.5, of Allachment A.
b. The costs of such services, when
material. must be charged directly to
applicable awarus based on actual u.sage of
the services on the basis of a schedule of
rnles or established methodology that (i) does
not discriminate against federally supported
nctivities of the organization, including usage
by the organization for internal purposes, and
(ii) is designed 10 recover only the aggregate
cosls of-I.he services. The costs of e:lch
service shall consist normally of both its
direct costs ~nd its allocable share of all
indirer.t costs. Advanr,e agreements pursunnt
to paragraph A.5. of Attachment A arc
particularly important in this situalion.
c, Where the costs incurred for a service
Rre not material. they may be allocated as
tndirect costs.
40. Taxes,
3. In general. taxes which the orgnniz:J tion
'5 required to pay and whi:;ll are paid or
.acr.rued inaccordullce with generally
accepted accounling principles, and
payments mnde 10 local governmenls in lieu
of taxes which are commensurate with the
local government services received are
allowable, except for (i) taxes from which
exemptiuns are available to the organizalion
directiv or which are avail"ble to the
organi~3tion based on an e:>-emplion afforded
the Government and in the lailer case when
the awarding agency m<lkes s\'ailable the
ncce~sary exemp!:on cerlifica tcs. Iii) special
assessments on land which represent capital
improvements, and (iii) Federal income taxes.
b. Any refund of t".xes, and <lny payment to
the organization of interest thereon, which
were allowed as award costs, wnl be
crediled eilher as a cost reduction or cush
refund, as appropriate, to the Government.
47. Termillulion costs. Terminati6n of
awanls generally give rist- 10 the incurr~ilc(;
uf cost~, or the neerl for specinl trentmen\ of
costs, which would not havc llriscn had the
award not been terminated. Cost principles
clJvering these items arc set forth belew.
They arc to be usr)d in conjunction with the
'other provisio:ls of this Circul;H in
termination situations.
a. Common itp.ms. The cust of items
reasonatJly usable on the organization's clher
work shall not be a!lowablc unless the
orgnr.izatio:l submits evidence Ihat it would
not retain such items al cost without
sustaining a loss. In decidi:lg whelher such
Hems are reasonably usable on other work of
the organization, the awardil:g agency shouid
consider the organization's plans and urders
for current and scheduled aclivily.
Contemporaneous purchuses of common
items by the organization shall be regarded
as evidence thai such ilems are reasonablv
usable on the organization's other work. Any
lIcceptance of common items as allocable to
the terminated portion of the aWiJrd shall be
hmited 10 the exlent thnt the fjllunliti"s of
. ~
r
;
,'1
Office of Management and Budget Circular A-122 (6/27/80)
such items on hand. in transit. and on order
aM! in exce~s of the reasonable quantitative
requirements of olher work..
b. Costs continuing alter tennination. U in
a panicular case, despite all reasonable
efforts by the organization. certain costs
cannot be discontinued immediately alter the
effective dale of termination. such costs ar1!
generally allowable within the limitations Bet
forth in t.h.is Circular, except that any such
costs continuing alter lermination due to the
negligent or willful failure of the organization
10 discontinue Bucb costs Bhall be
unallowable, .
e. Loss of ~'seful value. Lou of useful value
of sreciallooling, mochinery and equipment
w~,,:h was not charged to Ihe 8ward as a
c;J,...ial ~xpenditure is generally allowable if:
i:, Such special tooling, mac;;inery, or
eq. :pmenl is not reo80nably capable of use in
tlJ:. ~lber work of the organiz.ation.
1::1 The illterest of the Govemme:1t is
;:,~r ':r:I?d by transfer of title or t'y other
nH';I:1S deemed appropriate by the awarding
a::' ncy:
Ii, Rental costs. Rental costs under
u;-:I:xpired leases are generally allowable
y, ~:ere clearly Bhown to have been
n,..~onably necessary for the performance of
1[:" teminaled award less the residual value
0:' such leaaes, if (i) the amou.,t of auch rental
ch.imed does nol exceed the reasonable use
vabe of the property leased for the period of
th~ ~w"rd and such further ~riod as may be
rp'".ll)):,;ble, and (ii) the orgliruzation makes
all reasonable efforts to lerminate. assign.
sellie, or otherwise reduce the cost of such
lease. There also may be included the cost of
alterations of such le'ased property, provided
luch aJ:erations were necessary for the
performance of the award. and of reasonable
restor;;tion required by the provisions of the
leose.
e. Settlement expenses. Settlement
expenses including the following ano
gen!'rally allowable;
(1) Accounting. legaL clerical. and similar
costs reasonably neCi::ssaT)' for.
(a) The preparation and presentation 10
awardj~ agency of settlement claims and
supporting data with respect to the
terminated portion of the award. unless the
termination is ior default. (See parllgraph 4.a
oj Attachment 1.. OMB Circular No. A-llO;
and
(b) The termination and settlement of
subawarcls.
(2) Reasonable cos!l; for LlJe storage.
transpor1atiol:'_ protection. and disposition of
property provided by tbe Government or
acquired or produced for LlJe aware: except
when grantees an reimbu..~ed for disposals
at a preo!'termined amolillt in accordan~
with Attachment N of OMB Cirt;ujar A-ll0.
(3) Indirect costs related to silJaries and
wages inCUJ'T'ed as settlement expenselI in
subparagraphs (1) and (2) of thj., paragraph.
Normally. such indirect costs shall be limited
to Iring.e beneJits. occupancy cosL and
unmedla te supervision.
f. Claims w'lder subawards. Claims under
lubawards. including the allocable portion of
claims wbich ar1! common to the a ward. s.nd
to other work of the organiz.aUon are
generally allowable. An appropriate shure of
the organization's indirect expense may be
allocated to the amount of settlement. with
subcontractor / subgrnntees: provided that the
amount allocated is otherwis~ consistent
with the basic guidelines contained in
Attachment A.. The indirect expense 50
allocated sball exclude the sams and similar
costs claimed directly or indirectly as
settlemcnt expenses.
48. Training and educat.ian coats.
a. Costs of preparation and maintenance of
a program of instruction including but not
limited to on-the-job, classroom. and
apprenticeship training. designed to increase
the vocational efiectiveneu of employees.
including training materials. textboob.
salaries or wages af trainees (excluding
overtime compelUlation which might arise
thereIrom), and (i) salaries of the director of
training and sta!! wben the training program
is conducl!:d by the organization: or (ii)
tuition and fees when the training is in an
inatitution not operated by the organization.
are allowable.
b. Costs of part-time education. at an
undergraduate or postgraduate college leveL
including that provided at the organization's
own facilities. aM! allowable only when the
course or degree pursued is relative to the
field in which the employee is now working
or may reasonably be expectet:lto work. and
are limited to:
(1) Training materials.
(2) Textbooks.
'(3) Fees charges by the ttdocational
institution.
(4) Tuition charget:l by the educational
in3titution. or in lieu of tuition. ins lrUctOr:l ,
salaries and the related share of indirect
costs of the educatioo.al in.stitution to the
extent that the sum thereof La not in exceu of
the tuition which would bave ben paid to the
participating educational instllution.
(5) Saiuries and related cosls 0: instru.ctors
wbo are employees of tha OrganizatiOL
(6) Straight-time compensation of ~ach
employee ior time spent anending clas86l1
during werking hours oot in excess of 156
hours per yeer and only to the extent that
circumstan= do not permit the operation of
classes or attendance at classes afler regular
working hours: otherwise such compensation
is unallowable.
e. C.Jsts of tuition. fees. tra~g materiale,
and textbooks (but not subsistence. salary. or
any other emoluments) in connection with
full-time education. including that provided at
the organization's own facilities. at a
postgraduate (but not underp-aduate) college
leveL are allcwable onlv when the course or
degree pursued is relat~d to the field in which
the empiDyee is now working or may
reasonably be expected to work. and only
where tb~ costs receive the prior approval of
the awarriing agcncy. Such cos~ are limilet:l
to the costs attributable 10 a lotal period not
to excee:i on~ school year for each employee
50 trained.. In unusual, cases the pariod may
be extended.
d. Costs of attendance of up to 16 week..,
per employee per year at specialized
programs specifically designed to enhancc
the effectiveness of executives or ma:1.agcrs
or to prepare employees for suc.b positions
are allowable. SuclJ costs include enroUment
-'
A-122:11
fees, training materials. textbooks and
related chargea. employees' salarice.
subsietence. and traveL Casu allowable
under this paragrapb do not include tho~ for
coursea that are part of a d~~nted
curricwwn. which are allowable only 10 the
extent set forth in b. and e. above.
e. Maintenance expense. and normal
depreciation or fair rental on facllilles
owned or leBBed by the orj;arUz.a tion for
training PW1'oses an: allowable to the extent
sP.t forth in paragraphs 9, 2Z. and 42-
f, C:.mtributions or donations to
educational or training institutions, incJudlng
l!:e aonation of facllineB or other propp.rtiell,
BnJ scholarship5 or fellowshipa, are
unallowllble.
g. Training and educetion cosl.ll in exccss oj
those otherwise allowable under peregrophs
..b. and c, of this paragraph may be allowed
with prior approval oC'the awarding agency.
To be considered for approval. the
organization must demonstrate that such
costs are consistently incurred p1.lI'5uant to an
eslilblished training and educa:ion program.
and that the course or degree p1.lI'5ued is
relative 10 tho field in which the employee is
now working or may reasonebly be expecled
10 work..
49. Transportation costs. TransponaUon
CllSts include freight. express, cartage. and
pOllage charges relating either to goods
purchased. in process, or delivered. These.
costs ilre allowable. When such cosls can
readily be identified with the itelll.ll involved.
they may be directly charged liB
transportation costs or added to the cost of
such items (see paregrnph 23). Where
identification with the materials received
cannot readily be made. transportation costs
may be charged to the appropriate indirect
cost accounts if the organization follows a
consistent. equitable procedure in this
re~pe,::L
50. Travel costs.
a. Tra vel costs are the expenses for
lransportation. lodging. subaistence, and
related items incurred by employees who are
in Ira vel status on official business of the
organization. Travel costs an allowable
subject to paragraphs b. ilirough e. below,
when they are dllectly attributeDie to specific
work under an award or.are incurred in the
normal course of administration of the
organization.
b. SuclJ "osts may be charged on an actual
belsis. on a per diem or mileage basis in lieu
of actual costs incurred. or on a combination
of the tWo, proYided the method used resull.ll
in charges consistent with those normally
allowed by the organization in its regular
opera tions.
e. The diIference in cost between first-class
air acco=odations and less than !in;t-cla8&
air accommodations is unallowable except
when less than first-class air
accoD"uDoda tions a.""e not reasona bly
available to meet necessary mission
requirements. such as where leBe than fint-
elasl accommodationB would (i) require
circuitoWl routing. (il) require travel during
unreasonable hours, (iii) greatly increase the
duration' of the Oight. (iv) result in addilional
costs which would offset the transporta tion
sa\"i~p, or Iv) oITer ncco=odo tio'ns whic..h
~. j ",.
.. ..
L--
)fflce of Management and Budget Circular A-122 (6/27/80)
'T'e not rell&<lnably adequate for the med1ca.l
:e1!d& of the traveJe1'.
ct Neteuary and r&a&<lnabHl cosu of
amily lDfvelDentl and penonnel movements
)1 a spefal or mUI nature II.IlI allowable.
llJ1'3Uan\to plU'agrup~ 40 and 41. subject to
J!loca tiop on the basil of work or time period
le::efilell: when appropriate. A?va.nce
l~eemenlS are particullU'ly impo:1nnL
II, Diroct charges for foreign travel costs are
"llowable only when the travel has received
xior approval of the awarding agcncy, Each
-eparate foreign trip must be approved. For
~urpOBes of this provision. foreign tra vol is
jefined as any travel oUlJlide of Canada and
:~e United Slates aDd ils territories and
~osBe"ions. However, for an organization
,ocated in foreign countrics. the lenn "foreign
:ravel" means travel outside that country.
iCircular,No. A-l2.2J
Attachment C
Sooprofit Organizations nol Subject to lhi&
CJ-t;u l.ar
l\erospace Corporation. EI Segundo.
California
.A.r3onne Universities Aasociation. Chicago,
Illinois
Associated Univel1lities, Incorporated.
vVasrungton. D.C.
Associated Universities for Research and
Astronomy, Tucson. Arizona
Atomic Casualty Commission, Washinston.
O,c.
Battelle Memoriallnstitute. Heedquartered in
Columbus. Oruo
Brookb,aven National Laboratory, Upton.
New York
Center Cor f;nergy and f;nvlronmental
Resee.rch [CEER). (University of Puerto
Rico]
Commonwealth of Puerto Rico. Charles St.a.;k
Draper Laboratory, Incorporated
Ca:;:bridge. Massachusetts. Campara tive
f.r.imal Research Laboratory (CARL)
(lJ::inrsity of Tenncssee). Oakridge.
Ter.n"-~6ee
i:::\'iromnental Institute of Michigan. lum
!'.r~or. Michigan
Har.ford Environmental Health Foundation.
Richland. Washington
!IT R~search Institute. Chicago, lliinois
lr:~tilute ior DeCense Analysis. Arlington.
Vi16inia
bstilute of Gas Technology. Chicago. IllinDis
M;dw~st ReselU'co Institute, Headquartered
i:: Kunsas City, !vussoun
}'!it,e Co,pora:icn. Bediord. Massachusetts
}.~or.\ar.a Energy Research and Develo,llnent
I::stitute. Inc~ (MERDI), Bulle. Montana
1"aticnal Radiological Astronomy
Obsen'ator)', Green Bank. West Virginia
Oak....idge Associated Universities. Oak....idge.
Te;:nessee
Project Ma."lsgement Corporation. Oakrid.l1e.
T er.::lessee -
Rand Corporation. Santa Monica. California
R.esearch Triangle bstituta. Researc.~
Triangie Perk. North CarolhlB
?,ive:sicie Research lnstitute, New York. New
York
5<!ndia Corporation. Albuquerque. New
\.1 ~ -r:"'""
Southern Research Institubl, Blnningha.m.
AlabllIIl8
Southwest Research wtitute. San Anton1a.
T ex.B1
SRl International Menlo Parle. CaliIomla
Syracuse Research Corporation. SyTBcuaa.
New YorX
Universities Research Asaociation.
Incorporated (National Acceleration Lab),
Argonne. nlinois
Universities Corporation for Atmospheric
Re8earch. Boulder. Colorado
Nonprofitlnsurance Companies such as Blue
Cross and Blue Shield Organizsl!onB
Other nonprofit organizations a. negotiated
'Nith awarding agencies.
[Fll Doc. lIG-= mod '-1-<<1: 6:45 om)
8IWH'A COOE Jll~l...u
Editorial Corrections to
OMS A-122
OFFICE OF MANAGEMENT AND
BUDGET
Circular A-122, "Cost Principles for
Nonprofit Organizations"; Correction
AGENCY: Office of Management and
Budget.
ACTION: Final policy correction,
SUMMARY: This notice corrects errors in
the printing of cost principles for
nonprofit organizations. (45 FR 4602.2.
July 8. 1980).
FOR FURTHER INFORMATION CONTACT:
Palmer Marcantonio. Financial
Management Branch, Office of
Management and Budget. Washington,
D,C. 20503. (202) 395-4773.
. Page 46022. column 2 the second
Paragraph 1, change Paragraph 5
"Compensation for Personnel Scrvices"
to ParagTaph 5,
. Page 46022, column 2 the second
Paragraph 2. change Paragraph 6
"Contingcncies" to Paragraph 7.
. Page 46022. column 3:
Paragraph 4. change Paragraph 31,
"Equipment and Other Capital
Expenditures" to Paragraph 13.
. Paragraph 5. change Paragraph 25
"Meetings" to ParagToph 24..
. Paragraph 5, change Paragraph 27,
"Organi~ation Costs" to Paragraph'26,
. Paragraph 7. change. Paragraph 30
"Page charges in Professtional Journals"
to Paragraph 28.
. Paragraph 8, change paragraph 37
"Public Information Service Costs" to
Paragraph 35,
. Paragraph 9, change Paragraph 43
"Rental Costs" to Paragraph 42.
. Paragraph 9a: in the fourth line. add
"up" bctween the words "only" and
"to"; in the sixth line change "they" to
"it".
. Parngraph 10, change Parugraph 51
"T~'l~:pl rn~lc;" In r~:-;lr'7"~Tln :,n
- 1--
A-122:12
. Page 46024. column 3 Paragraph
4(a)(2) after "benefits received" add ";
or",
. Page 4(>025, column 1 Paragraph B3.
change the rderence. "Paragraph 21 of
Attachment B" to "Paragraph 19 of
Attachmenl n."
. Page 46026. column 1 Paragraph
4a.iii. in the sixth line. change "direct
cosl" to "direct cosls,"
. Page 46026. column2 Paragraph
Ele, change "e'stablishment of a rate" to
"cstablishment of a final rale."
. Page 46026, column 3 Paragraph
E2b. in the third line add Ihe following
aileI' "a Federal agency shall"-"submit
its initial indirect cost proposal
immediatelv."
. Pajie 4{x727. column 3 Paragraph
(3)(a), change "workmen's
compensation" to "workerF'
compensa lion,"
. Page 46028. column 1 Paragraph
Gf3(b). (the second line of column 1)
change "Workmen's compensation" to
"workers' compensa tion:'
. Page 46030, .column 3. paragraph
24b" the sixth line, change "allowable"
to "allowability".
Daniel F. Moon,
nudget and Management Officer.
IFR Doc. 81-8073 Flied 3-1&-81: ac<5 Ami
BILLING CODE J'I~l-M
Circular A-122, "Cost Principles for
Nonprofit Organizations"
Carrec/ian
In FR Doc, 81-20270, appearing at
page 46022 in the issue of Tuesday. July
n. 1960. the following changcs should be
made:
1. On page 46024, column three, tbe
second sentence in paragraph 'A.5,b.
should read. "Specific~ly. the concept
of net ling such credit items against.
related expenditures should be applied
by the organization in determining the
rales 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 complele sentence in paragraph
A,5. should read. "This is particularly
true in connection wi th organiza tions
that receive a preponderance of their
support from Federal agencies."
3. On page 46025. column one.
paragraph B.2. should read. "2. Any
direct cost of a minor amount may be
treated as an indirect cost for reasons of
practicality where the accounting
trealment for such cost is consistently
nrrb'd tn nil finAl r.o~t ohicr.tiveR."
..
I
..~ "f'"
1
Office of Management and Budget Circular A-122 (6/27/80)
4. On page 46025. column one,
paragraph E.4.f. should read, "f.
Administration of group benefits on
behalf of members or clients including
'life and hospital insurance, annuity or
retirement plans. financial aid, etc."
5, On page 46025. column two. the first
tsentence in paragraph O.l,e, should
read. "The base period for the alloca lion
of indirect costs is the period in which
such costs are incurred and acclJmuloted
for alloca tion to work performed in tho t
period,"
O. On page 4G020. column one, the
second senlence in paragraph 0.3.d
should rend, "The costs in the common
pool shall then be distributed to
individual awards included in that
function by use of a single indirect cost
rate,"
7, On page 46020, column one. the first
senlence in paragraph 0.3.e, should
read. "The distribution based used in
computing the indircct cost rate for each
function may be lotal direct costs
(excluding capital expenditures and
other distorting items such as major
subcontracts and subgrnnts), direct
:;alurics and wages, or olher base which
results in an equitable d'istribution."
8, On page 46020. column one. the first
and second sentences in paragraph
O.4,a. should read, "Some nonprofit
organizations treat all costs as direct
costs except general administra lion and
general expenses. These organiza lions'
generally separate their cosls into threc
basic cate!1ories:. . .,"
9. On page 46025, the last sentence in
column one (extending to column two),
in paragraph 0.5. should read, "Thc
factors may include the physical
loca tion of the work. thc lcvel of
administrative suppon required. the
nature of lhe facilities or other resources
employed, lhe scientific disciplines or
technical skills involved, the
organizational arrangements used, or
any combination thereof."
10. On page 46026, column three.
paragraph E.2.i. should read, "i. To the
extent that problems are encountered
among the Federal agencies in
connection with the negotiation and
approval process, the Office of
Management and Budget will lend
assistance as required to resolve such
problems in a timely manner."
11. On page 46030, column one, the
introductory text of paragraph 16.0. and
paragraph 16.b.(1) should read, "b. The
costs of idle facilities are unallowable
except to the extent that: (1) They Hre
necessary to meet fluctuations in
workloads: or".
12. On page 46030, column one, the
second sentence in paragraph 16.c.
should read. "Such costs are aJIowable,
provided the capacity is reasonably
antir:ipated to be necessary or WIlS
originaJIy reasonable Rnd is not subject
to reduction or elimination by subletting.
renting, or sale, in accordance with
sound business, economics or security
practices:'
13. On page 45031, second column.
paragraph 34.c. should read, "In addition
to the factors in paragraph b, above.
retainer fees 10 be allowable must be
supported by evidence of bonn fide
services available or rendered."
blLUHO COO€ lS05--01-l.1
.1
A-122:13
'\
..