ACCOUNTABILITY PROCEDURES AGREED UPON FOR EAST-WEST RECREATION TRAIL PHASE II
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GRANT
ACCOUNTABILITY PROCEDURES
AGREED UPON BY THE PARTIES
Applicability
The ~Grant Accountability Procedures" establishes uniform
guidelines agreed upon by the parties for utilization in
accounting for grant funds disbursed through grant programs
administered by the Bureau of Design and Recreation Services,
Division of Recreation and Parks, Department of Environmental
Protection for the mutual benefit of the parties. These
procedures set forth principles for determining eligible costs,
supporting documentation and minimum reporting requirements to
assist both parties.
Disbursement of Funds
Funds shall be disbursed by the Bureau in accordance with
good cash management principles. Grant funds shall be disbursed
as set forth within the agreement and provided for by law. The
Bureau may retain up to 10% of its obligation in order to insure
compliance with agreement terms and conditions. Retained funds
shall be released upon satisfactory completion of said terms and
conditions.
Disbursement terms shall be negotiated by the
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parties prior to execution of the agreement and shall be clearly
identified in the agreement between the Department and grantee.
Re~ursable Costs
To be eligible for payment under a project grant agreement,
costs must be necessary and reasonable for accomplishment of the
project and be directly allocable thereto pursuant to State or
Federal laws, rules, and regulations. Cost must be incurred and
work performed within the agreement period with the exception of
preagreement costs allowed by law or rule and specifically
identified within the agreement. Costs cannot be allocable to or
included as a cost of any other State or Federal financed program
unless clearly specified in the agreement. Costs must be net of
all applicable credits such as purchase discounts, allowances,
sales of scrap, and income from incidental services. The
following paragraphs identify eligible and ineligible costs under
actual cost contracts subject to any limitations of State or
Federal law.
Contractual Services
Services provided for a grantee by private or independent
contractors shall be evidenced by a formal agreement or contract
executed by all appropriate parties specifying the exact terms
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and conditions.
Competitive bid specifications and actual bids
'received shall be maintained by the grantee. The Contractual
Services Purchases Form FPS-A026, attached hereto and
incorporated herein as Exhibit ~B", shall accompany payment
requests for contractual services. The contractor's name, check
or voucher number, contract invoice number, a general description
of the services provided, and related project element shall be
reported.
Eligible - Costs of work performed by private or
independent contractors that are directly related to the
accomplishment of the project.
Ineligible - Costs for work performed by private or
independent contractors or consultants pursuant to cost plus or
contingency fee contracts.
Salaries and Wages
Payroll registers or journals, payroll warrants, and other
financial source documents shall be maintained to substantiate
the rates of pay and actual payments to grantee employees. Hours
of work reported for grantee employees shall be supported by
individual time records, project activity reports, or other
operational cost records signed at a minimum by the immediate
field supervisor (foreman). These record shall reflect the
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general categories of work performed - The Labor and Travel Cost
Form FPS-A027, attached hereto and incorporated herein as Exhibit
~C", shall accompany payment requests for reimbursement of
salaries and wages of grantee employees. The following
information shall be reported:
a. Last name of employee, initial, and social
security number;
b. Job classification and description of work
performed;
c. Project hours this billing;
d. Rate of pay;
e. Labor cost this billing;
f. Travel per diem costs, if applicable.
Eligible - Salaries and wages of employees for the
performance of work directly related to the accomplishment of the
project. Hourly wage rates shall be calculated by dividing the
employee's regular gross annual salary for,pay purposes by 2,080
gross annual work hours. Overtime charges for such employees
shall be eligible costs provided they are necessary. Overtime
charges shall be computed in accordance with the grantee's normal
procedures for payment of overtime to employees.
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Ineligible - Salaries and wages of employees
responsible for administration and general activities who do not
perform work directly related to accomplishment of the project.
Salaries and wages of employees applicable to vacation, sick
leave, or holidays. Salaries and wages of employees performing
routine daily servicing of ~quipment including general
maintenance and repair work.
Employee Benefits
Calculations and supporting documentation used to determine
the actual cost percentages incurred by the grantee for employee
benefits shall be maintained by the grantee. Employee benefits
shall be reported as a line item on payment requests.
Eligible - A percentage of eligible salaries and wages
of grantee employees may be allowed as a reasonable reimbursement
for benefits. The allowable percentage shall be calculated based
on one of the following methods.
I. A maximum of 15% of eligible salaries and wages of
employees who accrue annual, sick and holiday leave
from the grantee; plus a maximum of 25% of eligible
salaries and wages of employees who receive other
benefits (such as FICA retirement, health, and life
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insurance, and workers compensation) from the grantee;
or
II. The actual cost percentage incurred by the grantee for
employee benefits, if greater than the maximum of 40%
as in (I) above, provided that the actual cost
percentage can be documented by the grantee.
Ineligible - Employee benefits in excess of the rates
as established by the above methods.
Materials and Supplies
Direct Purchases - Vendor invoices shall be maintained
that include a description of the items and quantity purchased,
unit cost and total cost, less applicable discounts. Invoices
shall also contain the delivery date and signature of an employee
assigned to work on the project along with a description of the
general use for such materials or supplies. Purchase orders,
requisitions and competitive bid documentation as applicable
shall be maintained by the grantee for such purchases. Canceled
warrants shall be maintained as evidence of payment for such
purchases. The Direct Material Purchases Form FPS-A028, attached
hereto and incorporated herein as Exhibit ~D", shall accompany
payment requests for direct material purchases. The vendor's
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name, check or voucher number, vendor invoice number, cost, a
general description of items purchased, and related project
elements shall be reported.
Eligible - All costs of materials and supplies consumed
or expended in accomplishing the project including direct
purchases from vendors as well as withdrawals from grantee's
stock.
Ineligible - Costs of small tools (e.g. shovels, saws,
hammers, drills) and clothing or uniforms worn by employees
except that clothing worn for safety purposes is eligible.
Operating expendable or replacement parts purchased for grantee
owned equipment used on the project.
Equipment
Equipment usage logs, project activity reports, or
other operational cost reports shall be maintained to reflect the
daily use of each piece of equipment. These records shall
reflect the general work performed and the name of the equipment
operator as well as the actual dates and hours of use. These
records shall be signed at a minimum by the immediate field
supervisor (foreman). Invoices and other documentation such as
canceled checks and purchase orders shall be maintained to
support charges for rental costs of equipment obtained from
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independent sources. The Equipment Cost Form FPS-A03o, attached
hereto and incorporated herein as Exhibit ~E", shall accompany
payment request for equipment rental costs or for utilization of
grantee owned equipment. The type of equipment and general use
shall be reported along with rates or rental costs, actual
operating hours and operating allowances.
Eligible - All reasonable costs for equipment which is
required to be used or kept available at the site for
accomplishment of the project.
I. The actual cost incurred or the rental of equipment by'
the grantee from independent sources for the time such
equipment is used or required to be available to
accomplish the project.
II. Rental rates for the use of grantee owned equipment
provided the use of each piece of equipment is for
accomplishment of the project.
Ineligible - Costs of repairs or servicing of grantee
owned equipment. Rental charges subsequent to completion of the
need for a piece of equipment for the project. Purchase of
equipment for accomplishment of the project.
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Grantee Stock
Materials or sup~lies taken from grantee's stock or
inventory shall be supported by material requisitions or other
job order project cost records signed by the storekeeper and
employee assigned to work on the project. These source documents
shall describe items in detail and identify the general use of
such materials in the project. Appropriate records (e.g. vendor
invoices, canceled checks) shall be maintained to support unit
costs of the materials based upon the grantee's inventory
evaluation. An inventory system with procedures and records in
accordance with generally accepted accounting principles should
be maintained by the grantee. No warehouse or overhead charges
added by the grantee shall be allowed. The Stock Material Cost
Form FPS-A029, attached hereto and incorporated herein as Exhibit
~F", shall accompany payment requests for materials utilized from
the grantee's stock or inventories. The material requisition
date and number, general description of materials used, and
applicable costs shall be reported.
Indirect Costs
Indirect costs shall be calculated at the approved rate and
shall be reported as a line item on payment requests. No
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specific supporting documentation need be supplied for an
approved cost rate unless specified in the agreement.
Eligible - a percentage of eligible costs incurred by
the grantee which shall not exceed fifteen percent (15%) of
eligible salaries and wages of agency employees (not to include
employee benefits), is eligible as indirect costs. The Bureau is
authorized to approve a greater rate when an agency documents the
need for such rate using generally accepted accounting standards,
or when a greater rate is required for the administration of
federal funds, except that no rate shall exceed that established
by law.
Ineligible - Indirect costs in excess of the rate
established by statute or these procedures.
Record Retention and Audits
The agreement executed between the Department and grantee
establishes the eligible costs, supporting documentation, and
billing requirements for the project. In addition to the billing
requirements contained in the agreement, grantees, upon request
of the Auditor General and Comptroller of the State of Florida,
pursuant to their statutory authority, or the Department, shall
supply documentation (e.g. payrolls, paid invoices, canceled
checks, indirect cost calculations) to support their billings.
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Costs connected with the solicitation or receipt of a grant or
contract shall be the responsibility of the grantee and not
eligible for payment, except for allowed planning expense set
forth in the Florida Administrative Code governing the programs
administered by the Bureau.
The grantee shall retain all original records in support of
project costs included in the payment requests for three fiscal
years after the fiscal year in which final grant payment was made
to the grantee, except that such records shall be retained until
resolution of matters resulting from any litigation, claim or
audit that started prior to the expiration of the three-year
retention period.
All records of the grantee in support of project costs
included in payment requests shall be subject to review by the
Bureau, the Auditor General, State Comptroller, federal auditors
or others who may be authorized to audit the records of the
Bureau which involve the grantee. Records of the grantee shall
be made available at a time and place specified by the reviewer.
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