FUNDED AGREEMENT COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM
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Interdep..tment Correspondence
TO:
FROM:
SUBJECT:
Agreement with Quest Inn, Inc.
COPIES:
DATE:
November 28, 1989
Please find enclosed an original of the Agreement with Quest Inn, Inc. for your
files. We have retained a copy for our files.
JMP:nt
RECEIVED
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AGREEMENT
AGREEMENT, made and entered into this cY 7 (c day
of , 1989, by and between QUEST INN, INC., a Florida non-profit
cor oration, hereinafter referred to as "Agency", and the CITY OF CLEARWATER,
FLORIDA, a municipal corporation, hereinafter referred to as "City";
WIT N E SSE T H :
The parties hereto, for and in consideration of the mutual covenants
herein made and the benefits flowing from each party to the other, do hereby
agree as follows:
I. The Agency agrees as follows:
A.
Area to be served. To provide in the City of Clearwater the
services_hereinafter described.
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B.
Services to be provided.
1. To provide the services at 509 N. Fort Harrison
Avenue, Clearwater, Florida.
2. To provide an older youth oriented services program
including rehabilitation and emergency housing
facilities.
C. Audit and records.
1. To maintain financial records and reports and to
submit operating statements to the City as requested.
2. To maintain books, records, documents and other
evidence and accounting procedures and practices
which sufficiently and properly reflect all direct
costs of any nature.
3.
These records shall be
inspection, review or
authorized by the City.
subject
audi. t by
at all times to
personnel duly
4. To collect statistical data of a fiscal nature on a
regular basis and to make fiscal stati3tical reports
at all times prescribed by, and on forms furnished
by, the City.
D. Retention of Recor'ds. To retain all books, records, and
other documents relative to this agreement for five (5)
years after final payment. Any persons duly authorized by
the City shall have full access to and the right to examine
any of said materials during said period.
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E. Evaluation reports. To furnish the City with a monthly
evaluation report on the effectiveness of the program and
to furnish such other reports and information that the City
may require. A final report shall be made within thirty
(30) days after funding of the program ends.
F. Monitoring. To permit the City to monitor the program by
designating its official representative to the Agency's
Board of Directors.
G. Return of funds. That any City funds not expended for the
aforementioned services shall be returned to the City.
H. Civil Rights Act of 1964.
1. That there will be no discrimination against any
employee or recipient on account of race, color, sex,
r_eligious sect, national origin~. ancestry in the
performa~nce of this contract._ _ ___
2. That the Agency will comply with Title VI of the Civil
Rights Acts of 1964 in regard to persons served.
3. That the Agency will comply with Title VII of the
Civil Rights Act of 1964 in regard to employees or
applicants for employment.
4. It is expressly understood that upon receipt of
evidence of such discrimination, the City shall have
the right to terminate this contract.
5. That the Agency shall include this Civil Rights Act
requirements in all approved ~ubcontracts.
I. Indemnification and Insurance. The Agency s~all act as an
inciependent contractor in providing the ,forementioned
services. The Agency shall be liable for, and shall
indemnify, defend and hold the City harmless, for all
claims, suits, judgments or damages arising from the
operation of the aforementioned services during the term of
this contract, and shall provide adequate liability
insurance coverage at its expense.
II. The City of Clearwater agrees that, subject to the availability of
funds, payment from the City to the Agency for the period of
October 1, 1989, through September 30, 1990, shall be as follows:
Four quarterly payments of $728.75 ($2,915.00 annually) subject to
review by the City Commission.
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III. The City of Clearwater and the Agency mutually agree as follows:
A. Effective Date.
1. The effective date of this contract as described
shall be the first day of October, A.D. 1989.
2. This contract shall cover a period of time from the
effective date through September 30, 1990.
B. Inclusive Terms and Conditions. This contract contains all
the terms and conditions agreed upon by the parties. No
other agreements, oral or otherwise, regarding the subject
matter of this contract, shall be deemed to exist or to bind
any of the parties hereto.
C. Notices. All notices provided herein shall be mailed to the
Agency at the following address: P.O~Box 10071
Clearwater, FL 34617
D. Administrative Requirements. The Agency shall comply with
the following administrative requirements:
1. Records of the Agencies to be accessible to City staff
and the public, according to Florida Public Documents
Law.
2. Information to be made available to the City upon
request.
3. All Board meetings to be held in "the Sunshine".
4. An Affirmative Action Plan to be in effect subject to
monitoring and approval by City staff.
5. Funding to be on a quarterly basis, and except at the
beginning of the program year, all reports must be
received before the next quarter's funds will be
authorized.
IV. All notices provided herein shall be mailed to the City at the
following address:
James M. Polatty, Jr.
City of Clearwater
Planning & Development Department
P.O. Box 4748
Clearwater, FL 34618
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IN WITNESS WHEREOF, the parties hereto have executed this agreement on
the day and year first above written.
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CITY OF CLEARWATER, FLORIDA
By:
ffi 71 @
City Man~ger
Attest:
0'f~ >:- ;J;.S.J.)~,
chi Cltl~' . ,- . .
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By:
QUEST IN~:i~U L
jL9de~ ~
Attes~
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AGREEMENT FUNDED UNDER
THE CLEARWATER COMMUNITY DEVELOPMENT
BLOCK GRANT PROGRAM
THIS AGREEMENT is entered into as of the 1st day of October, 1988, by the
CITY OF CLEARWATER, Florida, a political subdivision of the State of Florida,
hereinafter referred to as the .CITY., and QUEST INN, INC., further identified
in Appendix A, hereinafter referred to as the .PSA., and included the Appendices
attached hereto.
WHEREAS, the City has agreed with the United States Department of Housing
and Urban Development to conduct a Community Development Program, hereinafter
referred to as the "Program", with federal financial assistance under Title I
of the Housing and Community Development Act of 1974, as amended, hereinafter
called the "Act", and
WHEREAS, the City of Clearwater Planning & Development Department,
hereinafter called the .Department., will act in behalf of the City in conducting
the Program, and
WHEREAS, the PSA provides a program as identified in Appendix A of benefit
to low and moderate income residents within the City of Clearwater and proposes
to perform the work and carry out the specific services as identified in Appendix
A hereinafter referred to as the .Project., and desires federal financial
assistance through the City to effect this proposal, and
WHEREAS, the City finds the project to be meritorious and in fulfillment
of the purposes of the Act;
THEREFORE, the parties agree as follows:
1. The PSA shall, in a satisfactory and proper manner as determined by
the Department, conduct the Project outlined in Appendix A.
2. The term of this agreement shall commence on October 1, 1989, and
terminate on September 30, 1990, unless earlier cancelled as provided herein.
The agreement may be extended for up to one additional year upon the request of
the PSA and the written authorization of the City Community Development Manager.
The need and merit shall be at the determination of the Manager. The Department
may issue written or oral instructions to clarify any other details or provisions
of this Agreement. Such instruction must be within the intent of the project
and not be of such nature to affect cost or period of performance.
3. The City representative with the PSA as regards conduct of services
under this contract shall be the Community Development Manager and the PSA's
services shall be carried out under the supervision of the Agent as identified
in Appendix A.
4. The PSA shall not exceed its budgeted amount and shall use the funds
in accordance with the award to be paid with Community Development Funds included
in Appendix B. Funds shall not be obligated when payment has been suspended or
terminated pursuant to paragraph 19 hereof. Any funds which the Department
determines were not properly expended shall be refunded to the City.
5. The PSA shall comply with the provisions of OMB Circular A-lID,
provided in Appendix G, and with the provisions of OMB Circular 122, provided
in Appendix H, or the appropriate successor documents of these documents. The
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PSA shall permit the City to audit the PSA's financial operation including but
not limited to compliance with applicable provisions of Federal law and
regulations. All PSA financial records relating to the Project are subject to
review by the City.
6. All subcontractors under this agreement shall be approved by the City.
7. All purchases of consumable, capital equipment and services shall be
in conformity with the Procurement Standards set forth in OMB Circular A-llO,
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. Noadvance
payments shall be made to the PSA. All costs and invoices for request for
payment shall be supported by properly executed payrolls, time records, invoices,
contracts, or vouchers, or other official documentation evidencing in proper
detail the nature and propriety of the charges. All checks payrolls, invoices,
contracts, vouchers, orders or other accounting documents pertaining in whole
or in part to the agreement shall by clearly identified and readily accessible.
Final request for reimbursement hereunder shall be submitted within 30 days after
completion of all services to be performed by the PSA and the City shall not be
responsible for payment of any charges, claims or demands hereunder not received
within said thirty day period.
9. The PSA shall upon the expiration of this agreement transfer to the
city any CDBG funds on hand and any accounts receivable attributable to the use
of CDBG funds. Program income funds are excluded from this provision or and are
provided below.
Program income funds shall be retained by the PSA so long as the activities
that will be undertaken with the program income are the specific activities that
meet the provisions of this agreement. These funds shall be adjusted by the City
according to the principles described in paragraphs (b)(2)(i) and (ii) of Section
570.504 which states that:
(1) Program income in the form of repayments to, or interest earned on
a revolving fund as defined in Section 570. 500(b) shall be substantially
disbursed from the fund before additional cash withdrawals are made from the
U.S. Treasury for the same activity.
(2) Substantially all other program income shall be disbursed for eligible
activities before additional cash withdrawals are made from the U.S. Treasury.
10. The City shall retain custody upon termination this agreement of any
and all property purchased with Community Development Funds. "Property" as used
in this Paragraph shall mean nonexpendable tangible property valued at $200 or
more with a remaining life expectancy of one year or more. The PSA shall retain
custody of property acquired with federal funds so long as the property is used
for the purposes described in Appendix A. When no longer used for such purpose,
the City shall assume custody of the property upon written notice to the PSA.
Upon purchase and receipt of property, the PSA shall submit to the Department
a Property Receiving Report. Stolen, lost or returned property shall be reported
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or immediately upon termination of this agreement. the PSA shall submit in a
Property Report a physical inventory of all property purchased with Community
Development Funds. The report shall also contain a verification of the existence
and current used and location of the property. and. if applicable, the continued
need for the property. No real or personal property or custody thereof purchased
with such funds shall be disposed of, transferred, assigned, or loaned by the
PSA without prior written consent of the City.
11. For any real property under the PSA's control that was acquired or
improved in whole or in part with CDBG funds in excess of $25,000 must;
(1) Be used to meet one of the national objectives in Section 570.901
until five years after expiration of the agreement, or for such longer period
of time as determined to be appropriate by the City; or
(2) Disposed of in a manner that results in the recipient's being
reimbursed in the amount of the current fair market value of the property less
any portion of the valued attributable to expenditures of non-CDBG funds for
acquisition of, or improvement to, the property. (Reimbursement is not required
after the period of time specified in paragraph (b)(8)(i) of Section 570.503.J1
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 PSAwithin 30 days after the end of the
contract te~. This final report shall consolidate reporting of all project
participants.
15. PSA shall establish and maintain on an accrual basis an accounting
system in accordance with the Standards of Grantee Financial Management System
as set forth in OMB Circular A-110 or the appropriate successor document and in
accordance with generally accepted accounting principals and standards where
these principals and standards are not in conflict with A-110 or its successor.
PSA agrees to modify or correct said systems in accordance with he City' s
requirements.
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16. PSA shall maintain such records and accounts as are deemed necessary by
the city to assure a proper accounting for all project funds. All such records shall
be available for audit, inspection or copying purposes at any time during normal
business hours and as often as the City, HOD, 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 term or condition hereunder.
c. Refusal to accept conditions imposed by HOD.
d. Refusal to accept conditions imposed bye_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 HOD funds necessary for continuation.
g. Convenience shall be according to the regulations in 24 CFR 85.43 and
85.44.
If the City suspends payment, it shall advise the PSA and specify in writing the
actions that must be taken as a condition precedent to the resumption of payment and
specify a reasonable date for compliance.
20. Both parties will use their best efforts to ensure that services under
this Agreement are provided so as to best meet the needs of residents with priority
to those residents who reside in the Community Development target areas. The PSA
shall make every effort to assure that a minimum of two-thirds of those persons
receiving services hereunder are low and moderate income.
21. No person with responsibilities in the operation of the project will
discriminate with respect to any project participant because of race, color,
national origin, or sex. Nor shall any participant be excluded from participation
in, be denied of, or be subjected to discrimination under any program of activity
funded in whole or in part with Community Development Funds because of race, color,
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national origin, or sex. Nor shall any participant be excluded from
participation in, be denied of, or be subjected to discrimination under any
program of activity funded in whole or in part with Community Development Funds
because of race, color, national origin or sex, as set forth in Other Program
Requirements in Appendix D, (CFR 570.601).
22. No resources provided through this Agreement shall be used to have
the primary effect of advancing religion, nor shall any goods or services
provided through this Agreement be provided in a pervasively sectarian manner,
as required by the First Amendment of the Constitution of the United States.
All activity under this Agreement shall be consistent with specific conditions
for religious organizations as established by the United States Department of
Housing and Urban Development.
23. The PSA will establish safeguards to prohibit employees from using
their positions for a purpose that is or gives the appearance of being motivated
by a desire for private gain for themselves or others, particularly those with
whom they have family, business or other identifiable ties. Prior to requesting
any continued project funding beyond the term covered by this Agreement or for
a new public services not covered by this Agreement, the PSA shall attempt to
secure other local, state or federal funding and/or private funding for such
project. The PSA will not as a result of receiving funding for the Project
reduce its support for other similar services already being provided by the PSA
in the area of its operation, and will, in fact, affirmatively seek additional
assistance and support from other sources for increasing services where needs
demand such increase. The PSA will not use these funds for publicity or
propaganda purposes designed to support or defeat legislation pending before
federal, state or local governments.
24. The PSA shall comply with the requirements of Section 3 of the Housing
and Urban Development Act of 1968, as amended, and the HUD regulations issued
pursuant thereto, attached hereto as Appendix E.
25. The PSA will comply with Equal Employment Opportunities Executive
Order 11246, as amended, attached hereto as Appendix F.
26. The PSA will comply with applicable federal law and regulations,
including but not limited to:
National Environmental Policy Act of 1969;
Flood Disaster Protection Act of 1973;
HUD Implementation of the Lead-Based Paint Poisoning Prevention Act;
Clean Air Act;
Historic Preservation Requirements of P.L. 89-656
Archeological and Historic Preservation Act of 1974;
Executive Order 11593;
Architectural Barriers Act of 1968;
Hatch Act;
Federal Water Pollution Control Act;
Federal Labor Standards provisions and the Davis-Bacon Act;
The Civil Rights Act of 1964;
National Flood Insurance Program;
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all as amended from time to time and in effect during the term this Agreement.
IN WITNESS WHEREOF. the parties hereto have caused this agreement to be
executed as of the day and year first above written.
QUEST INN. INC.
By
~sI:~(
, ' Preside
ATTEST:
dw 17- ~.~
Secretary
CITY OF CLEARWATER. FLORIDA
--a-zL-6lL
By
Rita Garvey
Mayor-Commissioner
Ron H. Rabun
City Manager
ATTEST:
Approved as to form & correctness:
CYhdig.-'G.oJ.1de~.u
-city G:t:E!Ek".
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Agency: Quest Inn. Inc.
Year: 1989 - 1990
APPENDIX A
Identification of A2encv and Snecific Services to be Provided
AGENCY
Name:
Quest Inn, Inc.
Legal classification:
A non-profit corporation organized and existing under
the laws of the State of Florida.
Principal Office:
509 North Fort Harrison Avenue in the City of
Clearwater, Florida, 34615
Mailing Address:
509 North Fort Harrison, Avenue, FL 34615
Agent:
Suzanne Bissett, Executive Director
813-443-2067
PROGRAM OF AGENCY
Provides temporary emergency housing primarily for young, single adults. Also
provides some food, clothing and counseling. May occasionally accept couples
and families on an exceptional basis.
SPECIFIC SERVICES TO BE PROVIDED UNDER THIS AGREEMENT
Quest Inn will be expanded to the third floor by converting the large, currently
unused attic into a 10 bed dormitory with bathroom, kitchen, and common room
facilities, or such modifications therof as may become necessary under space
limitations or other unfolding circumstances. If there are any residual funds,
other necessary facility improvements will be accomplished. The Pinellas County
Community Development Department is the LEAD AGENCY for organizations providing
funding under this Agreement. Specific program accomplishments and monitoring
are as determined in further detail by the agreement between Pinellas County and
Quest Inn, Inc, which will be provided by Pinellas County. Reports will be sent
by Quest Inn directly to the City, in addition to any report copies which are
sent directly to Pinellas County.
SCHEDULE
All of the SPECIFIC SERVICES will be completed as determined by the agreement
between Pinellas County and Quest Inn, Inc. and will be consistent with the time
specified in the paragraph 2. on page 1 of this Agreement.
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Agency: Quest Inn. Inc.
Year: 1989 - 1990
APPENDIX B
Proiect Award
Facility improvement funding of up to $25,000 will be provided for third floor
improvements, and for other facility improvements if there are available funds.
Other funding is anticipated through the Pinellas County Community Development
Department.
TO~ $25,000.00
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APPENDIX C
METHOD OF PAYMENT
All payments shall be on a reimbursement basis only.
All requests will be submitted to the Pinellas County Community Development
Department. The Pinellas County Community Development Department will disburse
the full appropriate payment and will in turn request of and receive from the
City the appropriate contribution.
All requests for reimbursement shall be supported by proper invoices, payrolls,
checks, receipts, and other documentation as requested.
Requests for reimbursement shall not be reduced by any program income received.
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Subpllrt K-0lher Program
Requlremenls
I 570.LOO Ge~ral
(u) Seclion l04(b) (J the Acl provides
lhul Bny grant under ~eclion lOG of Ihe
Acl shull be IT. .c' nly if the gronlee
cerlifies '10 Ihe sulitfoclion of the
Secrela'ry, among other things, Iho Ithe
grgnt "wilf lie. conducted ond
odminislered in conformily wilh Pub. L
M-352 ond Pub. L. 00-284," and, further,
Iholthe grantee "will comply with Ihe
olher provisions of Ihis tille Bnd with
olher Bpplicable IBws." SeclioD l04(d)(l)
of the Acl requires tha i the Secrelary
dt:lermine wilh respecllo granls made
pursuanlto seclion l00(b) [Entitlemenl
Grants) Bnd 106(d){2)(B) (HUD-
Adminislered Small Cilies Granls), al
least on Bn Bnnual basis, among other
Ihings. "whether Ihe granlee has carried
oul lils] certifications in compliance
with the requiremenls and the primary
objeclives of this title and with other
applicable laws. . . :' Cerlain olher
slatutes are expressly made applicable
10 aClivities assisled under the Acl by
Ihe Act itself. while other laws not
referred 10 in the Acl may be Bpplicable
10 such activities by their own lerms.
Certain slatutes or Executive Orders
which moy ue applicable 10 aClivities
assisted under the Act by their 0....'Tl
lerms are adminislered or enforced by
governmental departrnenLs or agencies
other than the Secretary or the
DepartInenl This Subpart K em.:.mera les
laws which the Secrelary wiD treal as
applicable 10 grants made under seclion
106 of the Act, other thal! grants 10
APPENDIX D
,'\
OTHER PROGRA}1 REQUIRE}ffiNTS
Slales made pursuant 10 section l00(d)
of Ihe Act. for purposes of the
delerminolions described above 10 be
made hy the Secrelary under seclion
l04(d)(l) of Ihe Act. including alolules
expressly mode appJicoble hy Ihe Act
and ceria in olher stalules and Execulive
Orders for which Ihe Secrelary hos
enforcemenl responsibilily. The obsence
of mention herein of ony Olher alalule
for which Ihe Secretory docs not have
direcl enforcemenl responsibilily ia not
inlended 10 be loken 85 aD indicotion
Iho\, in the Secrelory's opinion. such
alolule or Executive Order Is not
applicable to activities ossiated under
Ihe Ac\' For lows which the Secrelory
will treal as opplicuble 10 gronls made
to Slales under section l00[d) of the Acl
for purposes of the delerminotion
required 10 be made by the Secrelory
pursuonlto section 104[d)[2) of Ihe Act.
see t 570A%.
(b) This Subparl also sets forth certoin
additional program requirements which
the Secrelary has delermined to be
applicable to grants provided under the
Act 8S 8 maller of administrative
dlscre lion.
Ic) in addition to grants made
pursuanl to section 100(b) and
lOG(d)[2)[B) of tbe .I\ct [Subparts 0 and F
of \.his Part. respectij'ely), the .
reouirement8 of this Subpart K are
applicable 10 grants made pursuant to
sections 107 and 119 of the Act
(Subparls E and G, respectively).
~ 570.601 Pub. L 88-352 and Pub. L !to--
284; Executive Order 1106:1.
Section l04(b) of the Act provides that
any grant under section 100 of the Act
shall be made only if the gran lee
ce'rtifies 10 the satisfaction of the
Secretary thai the granl "will be
conducled and adminislered in
conformity with Pub. L 88-352 and Pub.
L. 90-284." Similarlv. sectioD 107
provides thai no gr~nt may be made
D-l
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under thai aection (Secretary's
Discretionary fund) or aection 119
(UDAG) v.'ithoul aalisfaclory assurance,
10' the same effec\.
(a) "Pub. L e&-35Z" rden \0 Tille VI
of Ihe Civil R~hls Act of 1004 (-12 U.S.C.
zooocl elleq.), which providea that no
person 10 the Uniled Slotea ahnll on the
ground of race, color. or nolionol origin.
be excluded from pnrticipotion In, be
denied the benefils of. or be subjected 10
discriminalion under Bny progrom or
actl\'1t)' receiving Federal finonclal
ossistance. Section 002 of the Civil
Righls Act of 1904 dire cis each Federol
depllrlmenl and agency empowered to
exlend Federnllinonciol o68islonce 10
any progrom or octivity by woy of gronl
10 effecluole Ihe foregoing prohibition
by issuing rules, regulations, or order. of
generol oppllcllbilil)' which shill! be
consislenl wilh achievemenl of Ihe
'. stotule outhoritillB the financial
assistance. HUO regula lions
implemenling the requirement. of Tille
Vl with respcCllO HUD progrom~ are
conlained in 24 erR Part 1. .
(b) "Pub. L 90-ZM" relers to Tille Vlll
of the Ci\'il Righls Acl of 1968 (42 U.S.C.
3GOl ~I &eq.), popularly \:.Down as the
Fair Housing Ac\' which provides thai il
is the policy of the Uniled Sla les 10
provide. within conslilulional
limitations. for fair housing throughoul
the Uniled Slales and prohibilS nny
person from discriminaling in Ihe sale or
renlal of houaing. the financing of
housing, or the provision of brokerage
services. Including in any WilY making
unavailable or denying a dwelling to
any'pef"1;on. because of race. color,
religion. aex. or national origin. Title
V\I1 further requires the Secrelary to
adminisler the programs and activities
relaling 10 housing and urban
developmenlln a manner affinnatively
10 further the purposes of Tille VIII.
Pursuanllo this statulory direction. the
Secretary requires that grantee'
adminisler all programs and acliyities
"
relnted 10 housing nnd community
developm~nl in 6 manner to
aflinnlllively furlher fllir housing.
[cl Execulive Order 11003. as
nmended by Executive Order 12259.
direcls Ihe Deparlmenllo take all ;!ction
necessnry and nppropriate to prevent
discriminolion because 01 race. color.
religion (creed), eex. or nntional origin.
in the snle. leasing. rental. or other
disposilion of residentiul property and
reloted fncilitiee (including land 10 be
devcloped lor residcnlial use). or in the
use or oceuponcy thereof. if euch
properly nnd rclaled Incilitics nre.
omong other things. providcd in whole
or in part with the uid 01 loans.
ild\'anccs. granls. or contribulions
/I~rcc\d.lo bc mnde by the Fedcral
Governmcnt. I-IUD regula lions
implementing Excculive Ordcr 11003 are
contained in 24 eFR Pnrl107.
~ 570.602 Sccllon 109 ollho Act.
[n) Seclion lo!J olthe Act requires thai
no person in Ihe United Stales shall on
the ground of rnce. color. na tional origin
or sex. be excluded Irom participation
in. be denied the bendils of. or be
subjecled to discrimination under. any
program or aclivily lunded in whole or
in part with community development
funds made available pursuant 10 the
Act. For purposes 01 this section
"program or activit"" is defined as any
function conducted by an identifiable
a dministra tive unit of the recipient. or
by nny unit 01 governme~t. ~ubrecipient.
or priva Ie conlractor receiving
cOInlnuni\y development funds or loans
from the recipienl. "Funded in whole or
in pari wilh community develepment
lunds" means that community
development funds in a:1Y amount in the
form of grants or proceeds from HUD .
guaranteed loans have been transferred
by the recipient or a subre;ipientlo an
identifiable administrath'e unit and
disbu.sed in a program ;:;r activity.
(b) SpeCific discriminatory oc/ions
prohi/;ited and correcti~'e actions.
P) A recipient may not. under any
program or activity to which the
I
regulations of this ParI may apply
directly or throufh contractual or other
llTrangrmcnts. on Ihe ground 01 racc.
color. nutional origin. or eex:
[i) Ucny allY lacilities. 8er\'iccs.
financiulllid or olher benefits provided
under the program or activity.
Iii) Provide Dny facilitic5, fiervices.
linancialllid or olher benclils which nre
diffcrcnt. or ore provided in a different
form from lhut providcd to otherB under
the program or nctivity.
(iii) Subject to segregated or Bepnrale
trentmcn\ in nny fucilily in. or in allY
matter of process relat~d to receipl of
any eervice or benclit under the progrum
or uctivity.
(i\') Restrict in IIny WDY nccess to. or
in the enjoyment 01 nny advantage or
privilege enjoyed by olhers in
corU1ection with filcilities. 8ervices.
financial aid or other benefits under lhe
program or activity.
Iv) Treat an individual differently
Irom others in determining whether Ihe
individual aatisfies any admission.
enrollment. eligibility. membership. or
other requirement or condition which
the individunl must meet in order to be
provided any facilities. eervices or other
benefit provided under the program or
llctivi:v.
[vi) Deny an opportunity 10 participate
in a program or activily as an employee.
(2) A recipient may not ulilize criteria
or methods of ndministration which
have the effect of subjecting individuals
to discrimination on the basis of race.
color. notional origin. or sex. or have the
effect 01 defeating or substantially
impairing accomplishment of the
objectives of the program or activity
with respect to individuals of a
particular race. color. national origin. or
8ex.
(3) A recipient. in determining the site
or localion of housing or facilities
provided in whole or in part wilh lunds
under Ihis part may not make selections
of such site or location which have the
eflec:t of excluding individuals from.
denying them the benefits of. or
subjecting them 10 discrimination on lhe
B.-2
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ground of rocC. color. national origin. ('\[
eex: or which hllve the purpo~e or effect
01 def('nlin~ or subslantially impniring
the acc:umplishment of lhe objectives cf
thc Act IInd of this seCtion.
(4)[i)In adminislering a program or
activily funded in whole or in pari wilh
CD~C IlInds regnrdinR which the
recipient has pre\.iously discriminoted
ogainst persons on the ground of race.
color. nulionul origin or eex. the
recipient must tuke nffinnnlive aclian \0
overcome the effecls 01 prior
discriminntion.
(ii) [\'cn in the absence 01 Euch prior
discrimination. a recipient in
ildminislerinR a program or aclivity
fllnded in whole or in part with COnG
lunds should tuke offirmntive nclion 10
ovcrcome the effects of conditions
which wOllld otherwise resull in limiting
panicipntiun by persons 01 0 pnrlicular
race. color. nalional origin or sex.
Where previous discriminalory practice
or uSllge lends. on Ihe ground of race.
color. national origin or 8ex. to exclude
individuals from parlicipation in. to
deny them the benefils of. or to subject
them 10 discrimina lion under any
program or activily to which this parI
applies. the recipient has an oblig<:lion
to take reasonable action to remove or
overcome the consequences of the prior
discrimina lory prtlctice or usage. and to
accomplish the purpose of the Act.
[iii) A recipient shall nol be prohibiled
by this part from laking any action
eligible under Subpart e 10 ameliorale
an imbalance in servicee or facililies
provided to an)' geographic area or
specific group 01 persona within its
jurisdiclion. where the purpose of such
a ction in to overcome prior
discriminatory practice or usage.
(5) Notwithstnnding anything 10 the
contrary in Ihis eection. nothing
contained herein shall be construed to
prohibil any r(t.cipienl from maintaining
or constructing separate living facilitie~
or rest room facilities for the different
sexes. Furthennore. selectivity on the
basis of sex i8 not prohibited when
institutional or cllstodial services can
"
'1 APPEND IX E
I SECTION 3 CLAUSE
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"-,I
TilE FULLO'WING SECTION 3 CLAUSE SHALL -gE INCLUDED IN ALL CONTRACTS FUR 'WORK IN
CONNECTION 'WITH A SECTION 3 PROJECT:
A. The \.lork 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, 12 U.S.C. 170u. Section 3 requires that to the greatest extent
feasible opportunities for training and employment be given lO\.ler income
residents of the project area and contracts for \.lork in connection \.lith the
project be a\.larded to business concerns \.lhich are located in, or o...rned in
substantial part by persons residing in the area of the project.
B. The parties to this contract \.lill comply \.lith 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 ot this cont ract. The
parties to this contract certify and agree that they are under no contractural
or other disability \.lhich \.lould prevent them from complying \.lith these
requirements.
C. The contractor \.lill send to each labor organization or representative of
\.lorkers.\.lith \.lhich he has a collective bargaining agreement or other contract
of understanding, if any, a notice advising the said labor organization of
\.lorkers' 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 \.lill 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 CFR. The contractor \.lil1 not subcontract \.lith any subcontractor
',.ihere 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 \.lith the requirements of these regulations.
E. Compliance \.lith the provisions of Section 3, the regulations set forth in 24 CFR,
and all applicable rules and orders of the Department issued thereunder prior to
the execution of the contract, shall be a condition of the Feder!l financial
assistance provided to the project, binding upon the applicant or recipient for
such assistance, its successors ,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 \.lhich Federal assistance is provided,
and to such sanctions as are specified by 24 CFR 135.
E-l
.__) APPENDIX F
NOTICE OF'.;...:QUlREMENT FOR A.fflR"1ATlVE ACT~I
TO ENSURE EQUAL EMPLOYMENT OPPORTUNl T'f
(EXECUTIVE ORDER 11246)
1. The Offeror's or Bidder's attention is called to the "Equal Opportunity
Clause" and the "St..andard Federal Eq\U.l Dnployment Opportunity ConstrUc-
tion Contract Specifications~ set forth herein.
2. The goals and timetables for minority and female participation, expressed
in percentage terms for the Contractor's aggregate workforce in each
trade on all consL~ction work in the covered area, are as follows:
A. Goals for Female Utilization, All Trades:
AREA COVERED
Goals for Women apply nationwide.
GOALS AliD 'TIMETABLES
TiJnetable
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:
TA.!1P.~- ST. PETERSBURG, FIA., AREA
Area covered: P~llsborough, Pasco, and Pi~e11as
Counties, Fla.
Goals a..~d Ti.met..ablesl
Trade
Goal
(percen t)
..
All. . . . . . . . . . . . . . . . . . . . . . . . . .
17.9
1For the life of the project.
7nese goals are applicable to all ~~e Contractor's const-~ction work
(whether or not it is Federal or federally assisted) performed in the
covered area.
The Contractor's co=p1iance with the Executive Order and L~e regulations
in 41 CTR Part 60-4 shall be based on its i~pleroentation of L~e Equal
Opport~~ity Clause, specific affi:::-mative action obligations recruired by
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,
\
the specifications le-cfon.1-J in 41 CFR 60-4.3(a), ar'l 'ts efforts to meet
the goals established for the geographical area .....he];;. L'-le contract
resulting from this solicitation is to be performed. The hou=s of minority
and female employment and ~aining must be substantially ~~ifor:n throughout
the length of G'-le contract, and in each trade, and the contractor shall
oake a good fait.h effort to employ minorities and women evenly on each of
i t.S projects. ':'he transfer of minori t:Y or female employees or trainees
from Contractor to Contractor or from project to project for L'-le sole
purpose 0t meeting the Con~actor's goals shall be a violation of the
contract, the Executive Order and the regulations in 41 CFR Part 60-4.
Compliance wi th G'-le goals I..'i 11 be measured against the total work hours
performed.
3. TIle Contractor shall provide \.-ritten notification to the Director 0: the
Office of Federal Contract Compliance Programs wi thin 10 ....or}:ing days of
a....ard of any constrUction subcontract in excess of SlO,OOO at any tier
for constrUction ....ork under the contract resulting from ulis solicitation.
The notification shall list t.~e name, address and telephone number of the
subcontractor; employer identification number; estimated dollar amount of
the subcontract; estimated starting and completion dates of the subcontractl
and the geographical area in ....hich the contract is to be perfo~ed.
4. ]>.5 used in this Notice, and in the contract resulting from this solici ta tion,.
the "covered area" is Pinellas County, florida.
60-4.3 (a)
EQUAL OPPORTm~ITY CLAUSE
During the performance of this contract, the contractor agrees as follo....s:
1. Tne contractor will not discriminate against any employee or applicant
for employment because of race, color, religion, sex, or national origin.
Tne contractor will u0:e affirmative a~tion to e~sure t.~at applicants are
employed, and that employees are treated curing employ~ent ....it.~out regard
to their race, color, religion, sex, or national origin. Such action shall
include, ~ut not be limited to the following: Employment, upgrading,
demotion, or transfer; recrui t:ment or :recruitment advertising; layoff or
terminatipn, rates of payor other fo:rms of compensation; and selection
for training, including apprenticeship. Tne cont=acto= agrees to post
in conspicuous places, available to employees anc. applicantS for e!Dploy-
ment, notices to be provided setting forth the provisions of this non-
discrimination clause.
2. The contractor will, in all solicitations or advertiseoents for employees
placed by or on behalf of the contractor, s~te G~at all Qualified
- ..
applicants will receive considera~on for em?loyment ....ithout regard to .
race, color, religion, sex, or national origin.
3. Tne contractor ....ill send to each labor union or representative of workers
....ith which he has a collective bargainir.g agreement or other contract or
~derstanding, a notice to be provided advising the said labor union or
workers' representatives of the.contracto:r'S co~tments under G~is
section, and shall post copies of L~e notice in conspicuous places avail-
able to e!Dployees and applicants for emplo:~ent.
F-2
40. The contractor ....ill ~"'~1P1Y ",'it.~ all provisions of [Xi _ive Order 11246
'. " of September 24, 1965, and of the rules, regulations; and relevant orders
of t.~e Secretary of Labor.
5. The contractor will furnish all information and reports required by
Executive Order 11246 of Septerrher 24, 1965, and by rules, regulations,
and orders of t.~e Secretary of Labor, or pursuant thereto, and will perreit
access to his books, records, and accounts by t.~e ac..:ninis tering agency
and t.~e Secretary of Labor for purposes of investigation to ascertain
compliance with such rules, regulations, and orders.
6. In the event of the contractor's non-compliance with the nondiscrimination
clauses of this contract or with any of the said rules, regulations, or
orders, this contract may be canceled, terminated, or suspended in whole
or in part and the contractor may be declared ineligible for further
Goverr~ent contracts or federally assisted constrUction contracts in
accordance with procedures authorized in Executive Order 11246 of
September 24, 1965, or by rule, regulation, or order of the Secretary
of Labor, or as otherwise provided by law.
7. J~e con~actor will include the portion of the sentence ~ediately
preceding paragraph (1) and the provisions of paragrapb~ (1) t.~ough (7)
in every subcontract or purchase order unless ex~.?ted by rules, regula-
tions, or orders of the Secretary of Labor issued pursuant to section
204 of ~xecutive Order 11246 of September 24, 1965, so that such provisions
will be binc..ing upon each subcontractor or vendor. The contractor will
take such action with respect to any subcontract or purchase order as
t.~e an~inistering agency may direct as a means of enforcing such provisions,
including sanctions for non-compliance: Provided, however, That in t')e
even~ a con~actor ~ecomes involved in, or is threatened with, litigation
with a ?ubcontractor or veneor as a result of such direction by the
adr.J.nistering agency, the contractor may =equest the Uni ted Su tes to en t.er
into such litigation to protect the interests of the United States.
ST.~NDJ..RD FEDERAL EQUJ..L EHPLOYM-"'"NT OPPORTUNITY CONSTRUCTION COl'.'TRACT
SPECITICATIONS (EXECUTIVE ORDER 11246)
1. As used in these specifications:
a. MCovered area" means t.~e geoCF"aphical area desc:::-ibed :l.n t.I-Je solici t:.c.-
tion f:::-o~ which t.I-Jis contract resulted.
b. "D:..=ecto:::-" means Director, Office. of Fede:::-al Contract CO!npli~ce
Prosr~s, Onited States Department of Labor, or any pe=son to who~
the Director delegates autho=ity.
c. "D:?loye= identification nt1!nber" mear~ the Federal Social Security
nurrber used on t.~e Employer's Qua:::-terly Federal Tax Return, O. S.
T=easu-"')' Department Fo::-m 941.
d. "P.inority" includes:
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"
\
(1) Black (all plrs~ns having origins in any of ~~ Black
Af=ican racial groups not of Hispanic originri
'.,
(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 (~ll persons having origins
in Any of the original peoples of the far East, Southeast
Asia, the Indian Subcontinent, or the Pacific Islands) i and
(4) American Indian or Alaskan Native (all persons having
origins in any of the original peoples of North America and
maintaining identifiable tribal affiliations L~rough member-
ship and participation or community identification).
2. Whenever the Contractor, or any Subcontractor at any tier, subcontracts
a portion of the work involving any const-ruction trade, it shall
physically include in each subcontract in excess of $10,000 the -provi-
$~ons of these specifications and the Notice which contains the ~p-
pllcable goals for minority and female participation and which is set
forth in b~e solicitations from which this contract resulted.
3. If the Contractor is participating (pursuant to 41 CFR 60-4.5) in a
Hometown.Plan approved by 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 ti.metables)
shall be in accordance with that Plan for those trades ~hich have ~,ions
Farticipating in the Plan. Contractors must be able to demonstrate their
participation in and ccmpliance wi~~ the provisions of any such Hometown
Plan. Each Contractor or Subcontractor participating in an approved Plan
is individually required to comply wi th its obliga tions under .the EEO
clause, and to make a good faith effort to achieve each goal under the
Plan in each trade in which it has employees. Tne overall good faith
perfo~nce by o~~er Contractors or Subcontractors ~oward 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 ti.me-
table.
4. The Contractor shall implement the specific affirmative action standarcs
provided in paragraphs )a through p of. these specifications. The goals
set forth in the solici"tation from which this contract resulted are
expressed as perc~tages of the total hou=s of employment and training
of minority and female utilization the Contractor should reasonably be
able to achieve in each const-~ction trade in-~ich 'it has employees in
the covered area. The Contractor is expected to make substantially
uniform progress to~ard its goals in each craft during the period
specified.
5. Neither the provisions of any collective bargaining agreement, nor tile
failure by a ~,ion with whom G~e Contractor has a collective barsaining
agreement, to refer ei~~er minorities or womEn shall ~:cuse the Contrac-
tor's obligatiop~ ~,der these specifications, Executive Order 11246, or
the re~~lations promulgated pursuant thereto.
F-4
. ,
,6. ....... or-de.::- far- ~.le ~O:i'~'C':/~:'::'; :.:a':";~':'rlg :10-";"::5 c':' di-r.:......::~.---.:..L~ c..;.:.J ......:..~...;...;I.;:::.J
t.o be coul"lted in meeti' t..'1e goals, such apprentices ~nd ~ainees must.
. be employed by the c~i\.. ...ctor during the training pe.:.-i1':and the
,.,Contracto::: must have made a commitment to employ the a~rentices and
trainees at the completion of their training, subject to the availabil-
ity of employment opportunities. - Trainees ~Ugt be trained pursuant to
training programs ~pproved by the U. S. Department of Labor.
7. The Contractor shall take specific affirmative actions to ensure equal
employment opportuni~'. ~e evaluation of the Contractor's compliance
with these si-,ecifications. shall be based upon its effort to achieve
maximum resul ts from its actions. The Contractor shall document these
efforts fully, and shall implement affirmative action steps at least as
extensive as the following:
a. Ensure and maintain a working environment free of harrassment,
intimidation, and coercion at all sites, and in all facilities at
",'hich the Contractor's employees are assigned to ,""ork. The
Con tractor, where possible, ",'ill assign t'Wo or morc'''''omen to each
construction project. The Contractor shall specifically ensure that
all foremen, superintendents, and other on-site supervisory personnel
are awa=e of and carry out the Contractor's obligation to maintain
such a working environment, with specific attention to minority or
female individuals working at such sites or in such facilities.
b. Establish and maintain a current list of minority and female
recruitment sources, provide written notification to minority and
female recruitment sources and to community organizations ~hen the
Contractor or its unions have employment opportunities available,
and maintain a record of the organizations' response~.
c. Haintain a current file of the na.l!\es, 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
community organization and of what 'action ~as taken ~ith respect
to each such individual. If such individual was sent to t."le union
hiring hall for referral and was not referred back to t."le Contractor
by G~e union or, if referred, not employed 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 Contractor 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
otJ1cr information that the \.:,."1ion refe.::-ral process has impeded Me
Con~acto.::-'s efforts to meet its obligations.
e. Develop on-the-job training opportunities and/or participate in
training programs fo.::- the area ~hich expressly include minorities
and women, including upgrading programs and apprenticeship and
trainee programs relevant to the Contractor's em?loJ~ent needs,
esp€cially those programs funded 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 p.::-ograms and requesting t.~ei= coopera-
tion in assisting the Contractor in I;1eeting its EEO obligations; by
including it in any policy manual and collective bargaining agreement; by
F-5
"
I
J
1,-1
publicizing it in the company newspaper, annual report, etc.; by
specific review of the policy with all management personnel and
with all minority and female employees at least once a year; and
by posting the company EEO policy on bulletin boards accessible
to all employees at each location where construction work is
performed.
.g. Review, at least annually, the company's EEO policy and affirmative
action obligations under these specifications wiL~ all employees
having any responsibility for hiring, assignment, layoff, termina-
tion or other employment decisions including specific review of
these items wi tl. onsi te supervisory personnel such as Superintendents,
General Foremen, etc., prior.to ~~e initiation of construction work
at any job site. A 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 s~ject matter.
h. Disseminate the Contractor's EEO policy externally by including
it in any ~dvertising in ~~e 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 with whomG~e Contractor does or antici-
pates doing business.
i. Direct its recruitment efforts, both oral and written, to minority,
felnale and community organizations, to schools with minority and
female students and to minority and female recruitoent and training
organizations serving the Cont=actor's recruitment area and employ-
ment needs~ Not later than one month prior to ~~e date for the
ac=eptance of applications for apprenticeship or other training
by any recruitment source, the Contractor shall send written
notification to organizations such as ~~e above describing ~~e
openings, screening procedures, and tests to be used in the selection
process.
j. Encourage present minority and female employees to recruit other
minority persons and women and, where reasonable, provide after
school, s~er and vacation emplo!~ent to minority and f~~le youth
both on the site'and in other areas of a Contractor's workforce.
.....
k. Validate all tests and other selection re~irements where L~e=e
is an obligation to do so ~~der.4l CFR Part 60-3.
1. Conduct, at least annually, an inventory and evaluation at least of
of all minority and female persor~el for promotional opportunities
and encourage these employees to seek or to prepare for, ~~ough
appropriate training, etc., such oppor~~ities
m. ~~ure that seniority practices, jo~ classifications, work assign-
ments and other personnel practices, do not have a discrim.ina tory
effect by continually monitoring all personnel and employment
rela ted activities to ensure that the SO policy and the Contractor I s
F-6
obligations unde) these specifications are being .~ .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
pri vacy be tween the sexeS.
o.
Document and maintain a record of all solicitations of offers
for subcontracts from minority and female cons~~ction
contractors and suppliers, including circulation of solicitations
to minori~' 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 contrac-.:or-union, contractor-community, or other similar group
of which the contractor is a member and participant, may be asserted
as fulfilling anyone or IJ\Ore of i t5 obligations under 7a through P
of these Specifications provided that the contractor actively partic-
ipa-.:es jn the group, makes every effort to assure that the group has
a positive impact on the employment of minorities and wOwen in the
indust-J', ensures that the concrete benefits of the program are
reflected in the Contractor's minority and female workforce partic-
ipation, makes a good faith effort to meet its individual goals and
timetables, and can provide accesS to documentation which demonstrates
the effective~ess of actions taken on behalf of the Contractor. The
obligation to comply, however, is the contrac-.:or'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 xr.inorities and a separate single goal for ,""omen have
been established. The Contractor, however, is required to provide
equal emp~oyment opportunity and to take affirmztive action for all
minority groups, both male and feffi~le, and all women, both minority
and non-minority. Consequently, ~~e Con~ac-.:or may be in violation
of the Executive Order if a particular group is employed in a substan-
tially disparate manner (for example, even L~ough the Contractor has
achieved i t5 goals for. women generally, the Contractor xr.ay be in
violation of L~e Executive Order if a specific minority group 04 women
is underutilized).
10_ Tne Contractor shall not use the goals and timetables or affirmative
action standards to discriminate against any person because of race,
color, religion, sex, or national origin.
11. The Contractor shall not enter into any Subcontract with any person
or fi~ debarred from Government contracts pursuant to Executive
Ord~r 11246.
F-7
12.
The Con~ac~or Sh~~ ~arry out such sanctions and j \lties for
v101a~ion of these specifications and of the Eoual~pportunity Clause,
-including suspension, termination and ~ancellation of existing sub-
contracts as may be imposed or ordered pursuant to Executive Order
11246, a6 amenced, and its implementing regulations, by the Office
of Federal Contract Compliance Programs. Any Contractor who fails
to carry out such sanctions and penalties shall be in violation of
these specifications and Executive Order 11246, as amended.
. ,
lj
13. The Contractor, in fulfilling its obligations under these specifications,
shall implement specific affirmative action steps, at least as exten-
sive as those standards prescribed in paragraph 7 of these specifica-
tions, so as to achieve maximum resul ts from i.ts efforts to ensure
equal employment opportuni ty. I f the Contractor fails to comply wi th
the requirements of the ExeCUtive Order, the implementing regulations,
or these specifications, the Director shall proceed in accordance with
41 O'R 60-4.8.
14. The Contractor shall designate a responsible official to ~nitor all
employment related activity to ensure that the company EEO policy is
being carried out, to submit reports relating to 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....."'""Uction trade, union affiliation if any I employee
identification number when assigned, social security number, race,
sex, status (e.g., mechanic, apprentice, trainee, helper, or laborer),
dates of changes in statuS, hours worked per week in the indicated
trade, rate of pay, and locations at which the work was performed.
Records shall be maintained in an easily understandable and retrievable
form; however, to the degree that existing records satisfy this
requirement, contractors shall not be required to maintain separate
records.
15. Nothing herein provided shall be const::ued as a limitation upon the
application of other laws which establish di=ferent standards of
compliance or upon the application of requirements for L~e hiring of
local or other area residents (e.g., those under L~e Public works
Employment Act of 1977 and 'the Comm~~ity Development 310ck Gr~t
program) .
..
F-8
I
'J
~' ,
APPENDIX G
OMB
Circular A-IIO
J
.
I
I
Office of Management and Budget Circular A-110 (7/30/76)
A-110:1
OFFICE OF MANAGEMENT AND
B U DG ET
(Circular No. A-IIOI
GRANTS AND AGREEMENTS WITH INSTI-
TUTIONS OF HIGHER EDUCATION,
HOSPITALS, AND OTHER NONPROFIT
ORGANIZATIONS
Uniform Administrative Requirements
JULY I, 1976.
To the hews of executive departments
and estnblishmcnts.
SubJect: Uniform administrative re-
Quirements for grants and other agree-
ments with Institutions of hizher edu-
cation, hospitals, and other nonprofit
organ lzatlons
1. Purposc.-This Circular' promul-
gates standards for obtaining consisten-
cy and unlformity among Federal agen-
cies in thendministratlon of grants to,
and other agreements with, public and
private Institutions of higher education,
publlc and private hospitals, and othcr
Quasi-publlc and private nonprofit or-
ganizations. This Circular docs not apply
to grants, contracts, or other agreements
between the Federal Government and
units of State or local governments
covered by Federal Management Cir-
cular 74-7.
2. Effective date.-The standards in
the attachments to this Circular v..ill 'be
applied as soon as practicable but not
later than January I, 1977.
3. Supersession.-This Circular res-
cinds and replaces parts III and IV of
the Appendix to Federal Management
Circular 73-7, Administration of college
and university research grants.
4. Policy intcnt.-Thc uniform stand-
ards and requirements included in' the
attachments to this Circular replace the
varying and often conflicting require-
ments that have been imposed by Fed-
eral agencies as conditions of grants and
other agreements with recipients.
5. Applicability and scopc.-Except as
provided belov.', the standsrds promul-
gated by this Circular are applicable to
all Federal agencies. If any statue ex-
pressly prescribes policies or specific re-
Quirements that dilIer from the stand-
ards provided herein, the prOVisions of
the statute shall govern.
The provisions of the attachments of
this Circwar shall be applied to subre-
cipients performing substantive work
under grants that are passed through or
awarded by the primary recipient if such
subreciplents are organizations de-
scribed in paragraph 1.
6. Definitions.
6.. 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
publlc purpose. The term "other agree-
ments" does not Include contracts which
are required to be entered into and ad-
ministered under procurement laws and
regulations. Grants and other agree-
ments exclude (a) technical assistance
~;o.:r_:~.s. which prOVide services imtead
general revenue sharing. loans. 102..n
guarant.ees. or insurance, and (c) direct.
payments of any kind to individuals.
b. The term "recipient" includes the
following types of nonprofi I. or!:aniza-
tions that are receh'ing Federal funds
from a Federal agency or through a
State or local government:
Public and private InsUtutions of high-
er education: public and private hos-
pitalS: and othcr Quasi-public and pri-
vate nonprofit organizations such as (but
not limited to) community ll,Ction agcn-
cies. research Institutes, educational as-
sociations. and health ccntcrs.
The term does not Include foreign or
international organizations (such as
agencies of the United Nations) and
Go\'crnment-owncd contractor operated
facilities or research centers providing
continued support for mission-oriented,
large scale programs that are Govern-
mcnt-owned or controlled, or are de~,
signed as federally-fundcd rescarch and
development centers.
7. RCQucsts for cIccptions.-The Office
of Management and Budget ma-y grant.
exceptions from the requirements of this
Circular when exceptions are not pro-
hibited under exlsUng laws.
However, In the interest of maximum
uniformity, exceptions from the re-
Quirements of the Circular v:lll be per-
mitted onlv In unusual cases. Agencies
may apply -more restrictive requirements
to a class of recipients when approved by
the Office of Management and Budget.
8. Atta.chments.-The standards pro-
mulgated by this Circular are set forth
in the Attachments, which arc:
Attachment A Cash '''deposltorles.
Attachment B BondIng and Insurance.
Attnchment C RetentIon and custodial re-
q u Iremen1.S for records.
Attachmen.t D PrD(:"ram Income.
Attachment E Cost shlU'lng ..nd matchIng.
Attachment F Standards for nnanclnl maD-
ngement systems.
Attachment G FInancial reportIng require-
ments.
Attachment H MonitorIng and reporting
program performance.
Att.n.chment I Payment requlr"mp.nts.
Attachment J Revision of flnllnclnl plans.
Atta..chmen.t K Closeout procedures.
Attl\chmcnt L S.uspenslon nnd termination
procedures.
Attachment M Standard form for awlylng
for federal a5slstance.
Attl\chment N Property management stand-
ards.
Attachment 0 Procurement standards.
9. Exceptions far ccrtain recipienis.-
Notwithstanding the provisions of para-
graph 7 If an applicant/recipient has a
history of poor pcrformance. is not ft-
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 prc.vided that such applicant/
recipient is notifled 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 Oft'lce of Managemcnt and
Budget and other agencies funding that
recipient at U1e same time the recipient
; ~ _ _ ~ ; r: _ ..:
10. Rcsponsibilities.-Agencies rcspon-
sible for administering programs U1at in-
volve grants and other agreements with
recipients shall issue the appropriate
regulations neccssary to implement the
provisions of this Circular. All portions
of wch regulations t1lltt Involve record-
keeping and/or reporting rCQuircmcnts
subjcct to the proviSions of the Federal
P.cporLs Act and OMB Circular A-40
must. be submitted to OMD for clCl\rance
before being introduced into use. Upon
request all regulations lInd illstruction~
implementing this Circular shall be
furnished to V1C Office of Managcment
and Budget. Agencics shall also desig-
nate an official to servc as the agency
representative on mallers relating to the
!mplementation of this Circular. The
name and title of such representative
shall be fumL~hed to the Office of Man-
:tgement and Budget not later than Au-
gust 30. 1976.
11. /nQuirics.-Purlher information
concerning this Circular may be obtained
by contracting thc Financial Manage-
menl Branch. Budget Review Division.
O!flce of Management and Budget,
Washington, D.C. 20503, telephone 395-
3993.
JAMES T. LYNN,
Director.
A'ITACHMF.NT A.--CmcuLAR No. A-IIO
CASH DE'r'OSITORIE5
1. This attachment sets fo"th 6tl\ndard.s
governing the use of banks and otller In-
stl tu tlons as cJeposl torlcs of fund" l\d"anced
under grnnts an.d other agreements.
2. Except lor situations described In para-
graph6 3. 4. aDd 5, no Federal sponsoring
agency shall:
a. Require physical 6egregl'tlon of cnsh de-
positories lor lund.s ",'hlch sre provided to a
recipient.
b. Establish nny eligIbility rcqulr.ements
for cash deposItorIes lor funds which are pro-
vided to a reclplcnt.
3. A separate bank a..count shall be require
"..heD applicable Jetter-of-credl~ agrecments
provide that drawdo,,'n.s wlll be mr.de when
the reclplent's checks lLTe presented to the
bank lor pl\yment.
~. Any moneys advl\nced to n rcclplent
,,'hlch are subJert. to th~ contr~l.. Or rCL:ula-
'.Ion 01 the United Slates or ..ny o:'lts omcers.
rgcnts or employees' (publiC moneys is de-
fined In 'nea..sury ClrcullL1" No. 1.76. lIS
amended) must be deposited In a ban'k with
Federal Deposit Insurance Corporation
(FDIC) Insurnnce coverage nnd thc h..lance
exceeding the FDIC coverage must be col-
laterally secured.
5. Consistent with the natlona! gOl\! of
expanding the opport\l nltles lor mInority
business enterprises. recipients I'nd "\lb-
recipients shall be encouraged .to use mlnor-
It\. banks (a bank "..hlch Is ov.'ned at least 50
p~rcent by minority group member,,).
A'ITACHMI:NT B.-CIRCOLAR No. A-I] 0
BONDING AND INSURANce
:. This attachment sets forth bonding nnd
Insurance requirements for grants and other
ng-recments v.-1th recipients. No othcr bond-
Ing and Insurancc requlremeM.s "h..lI be Im-
posed other thaD those normally required by
the recipient.
2. Except as otherwise required by In,,'. a
grant or other agreement that reqUire" the
contr6cttng (or subcontrA.cttn~) for con-
~truC'tlon or fnclltty lmprovement~ shnll pro-
....,~ ,__ .\-... _,..._'_'.-__' ,,-, '..."......... ~'(' n"-') ..,,-
I
Office of Management and Budget Circular A.110 (7/30/76)
qulrementJ; relating to bid gus.rantees. per-
10rmAIlce bondB. ..nd payment bond! unless
tbe construction contr&Ct or subconuact ex-
ceedB tlOO.OOO. For those ooDltrBct.6 or sub-
contl"1l.CU exceeding a 100.000. the Federal
agency may accept the bonding policy and
requirements 01 the grantee provided the
Federal agency hall made- a determination
tbat the Government'. Interest 111 adequately
protected. l! .uch a determination bas not
been ma.de. the minimum requirements .hall
be lIS 101l0Vo's:
a. A lXd VUa.T"nlee Irerm etu::h bllUUr equiv-
alent 10 JIve percent 01 lhe bIG price.-
The "bid guaran.tee" shall conslllt 01 a firm
commitment 8uch as a bid bond. certl1led.
cbeck. or other negotiable Instrument BC-
companying a bid all assurance that tbe bid-
der will. upon accept.Ance 01 hl1l bid. execute
such contractUAl documents IL3 may be re-
quIred within the time 8peCl1led.
b. A per/ormanl;e band on the part 01 Ihe
contrtu::tor lor 100 percenl 01 the ccmtrtu::t
pt"lce.-A "per1orm..nce bond" Is one executed
In connection with a contrnct to secure lul-
lUlment 01 all the contrBctor'. obligAtions
under 8uch contrl\.Ct.
c. A. payment band on the part 01 the con-
trtu::tor lor 100 percent 01 the contract
priee.-A "payment bond" Is one executed In
connection with a contract to M.ure pay-
ment all required by law or all persons sup-
plying labor and ma t.erlal In tbe execution of
tbe work provided for In the eon tract.
3. Where the Pederal Government guaran-
t.ees or Insuru tn~ repayment of money
borrowed by the recipient. the Federal
agency. at 1t.6 discretion. may require a.de-
quate bonding a.nd 1n.sur..nce l! the bondlng
..nd Insurance requirements of the recipient
are not deemed a.dequat.e to protect tbe In-
t.ere.st of the l"eder..1 Government.
~. The Ped.eral 8potlllOrlng agency may re-
quire a.dequat.e fidelity bond coverage ....bere
tbe reCipient bas no coverage and tb. bond 111
needed lto protect the Government.. Int.erest.
:i. Where boncl8 are ~ulred In the 8Itu.-
tlon.. descrlbed above. the boncl8 .hall be ob-
tained from companlell holding certificate<! of
authority .... acceptable .uretles (31 CP'R
2n).
ATTACRWXNT C.--CnctlLAll No. A-ll0
krn;NTION ANt> ctlSTOOIAL JU:Qtrnt%>a:NT8 roa
.~Oa.o8
1. Th16 attachment ..el.e fortb record reten-
tion requlrements for ~ants and other agree-
ment.. ....Ith recipient... Federal spoDBOrlng
a.g<>nclell shall not ImJ>O"e any record reten-
tlon requirement.. upon reclplent.6 otber tban
thO&e descrlbod belo.....
2. Excelli for paragT&ph I. thl. attachment
albo appllell to ..ubreclplent.6 lIS reterred to
In paragraph 1\ of the b8.lllc circular.
3. P'1nanclal recorcl8. 8Upportlng document...
.tatlstlcal record.6. and all other records perti-
nent to an ap-eement &ball be retained tor a
periOd ot three ye&nl. wltb the tollo"'1ng
queJI!lcatlon.. :
~ It a.ny litIgation. clalm or audit la .t.a.rted
be. ore the expiratIon ot the 3-year periOd tbe
..-..oord.6 &ball be retained un tll all 11 tl,:..tioDl;
clalms. or audIt find1ng-slnvolvlng the recor~
hAve been ~lve<1
b. R<<:on:ls tor n~nexpend..ble property &e-
QUIre<1 ....It.h P'ederlll tunc1& &ball be retained
tor 3 yca.n atler Il.e final dlllJ>O'lltlon
c. WOon rt'<'<lrds are tranBterred U, or maln
talned by tbe Federal ~oD&Ortng agency th~
~;~enrto treb kntlon re<:julrcmtnt III not a"p'llca-
e recipient.
~. The ret.en tlon period Slli...'"t8 from the
dak of tbe subm.laalon of tbe final upend1-
tw-e report or. tor grants and other agree-
:..e~t.. tbat are rene....ed ..nQually. troto the
n of the "ubmb&lon of the a.onueJ
mLnelal .t..o.tWl re-port.
6. Recipient organlutlons should be au-
thorized b)" the Federal sponsoring "teney.
l! they 60 desire. to substitute mJcrofilm
copies In lieu of orll'"lnal records.
6. The Federal sponaorJ.n& "tenc}' shall re-
quest tr..nsler of certain record. to Its cw-
tad)" trom recipient organlutlons ,,'hen It
de~ermJnes that the recorcl8 pO&Scss long-
term ret.entlon value. However. In order to
avoid dupllcate record-keeping. a Federal
aponsorLng agency may make arrangement.6
..1th re<:elplent organLzatlons to retain any
records that are contlnuoU8ly needed tor
Joint use.
7. The head of the Federal 8ponsorlng "ten-
c)" and the Comptroller Oeneral ot the United
StAtes. or any or their duly authorized repre-
8entatlVell. ..hall h..ve acceas to an}' pertLnent
books, documents. paper8. and records of the
reCipient organization and their ..ubre-
clplents to mAke audIt... examJnatlons. n-
cerpts and tran.crlpts.
8. Unless otherwllle required by la..... no
Pederal aponsorlng agency ...... III I pl&Ce re-
strlclloIll\ on recipient orglUl1zatloIlll tbat will
limit public access to the rcoon1s or recipient
organIzAtIons th..t are pertinent to a grant
or agreement excep"t ....ben the agency can
demonstrat.e th..t 8uch records must bc kept
confidential and would have been excepted
from dl1lclOllure punlUant to the Freedom of
Intormatlon Act (6 U.S.C. 662) l! tbe recordB
had belonged to the Federal sponsortng
agency.
A"ITACHJ>aNT D.--CmcuLAlt No. A-1I0
nOGaAh! U'COloU
1. Federal "poDBOrlng ~ncles shall apply
the ..tandardB .et torth In thl6 atta.cbment In
requiring recIpient organizatIons to a..ccount
tor program Income related to project<!
fiDB.nced In ....hole or In part w1th Federal
tunc1&. Prognun Income represent.6 groaa In-
come ....rnod by the recipient from the fed-
erally 8upported &Ctlvltles. Such earnlng-s ex-
clude Interest earned on a.dvancell and may
Include. but wUI not be IlmJted to. Income
from 8ervlce tees. 8ale of commodJtles. uaage
or rental fees. a.nd royalties on pat.en.l.e and
coprlghtB.
2. Int.erest earned on advances of Federal
funds ..lull be remItted to the Federal agency
except t or In t.eres t earn od on ad va.noes 'to
Stat.e& or IIlBtrumen.ta.Jltlee of a Stat.e a.s pro-
vided by the IntergovernmentAl Cooperatlon
Act of 1968 (Publlc lA.... ~77).
3. Proce<<1s from tbe &ale of reo..l and per-
80nal property either provided byUle Ped-
eral Government or purcbased In whole or In
part w1tb Federal tunds. ..baJJ be blUldlod lD
aceon:lance w1tb Attachment l' to tbla cir-
cular perta.Jnlng to property m..a.nAgemen t
~. Unle& tbe agreement provld.., other-
wise. recipient>! "hall b..ve no obligation to
the P'edereJ Government. w1tb rellpect to
royaJtlell receIved 8.ll a reBult of copyrlgbl.e or
pat.entll produced under tbe ~ant or other
agreement (&ee par&gT&pb 8. Attachment N).
6. All other program Inoome earned during
the project period &hall be retalned by the
recipient. and. In accorda..."lce ....Ith the grant
or other ~eement. .hall be:
a.' Added to tunds cOnunJtt.ed to the proJ-
ect by tbe l"ederal spon&Orlng ..gencv a.nd
recIpient organIzAtIon and be uaed to t~rtber
eligible program objectives:
b. U8ed to finan~ tbe non-Federnl &bs.re
01 tbe project wben approved by the Poderal
8pOD.80rlD8 agency; or
c. ~ucted from the t<>tal project C06t.6
In det.ermlnlng the net COIlts on which the
r"eden.1 &bare ot cost.6 wUl be baaed.
ATTACSJoLrw-r I:.--CIRCUt..U No. A-IIO
COB'T !I H..A.1I}fC A:HD ).( A TCHIN 0
1. Thill &tt&c.hment 8et>! torth criteria ..nd
Pr-oce<lur.... tor the ..llo......bUltT o! cJU'.h n"fl
I
A-110:2
In-kind contrlbutlon.. ma.de by reClplent.6 or
,ubreclplents (as referred Lo In para~aph 5
01 the basic circular). or tblrd parties In 8al-
lJ;fylng cost .harLng a.nd matching requlre-
ment.6 01 Federal sponsoring agencIes. Thl'
attachment al80 establl.s.hes criteria tor the
e...luatlon of In-kInd contrlbutlons ma.de by
third partie.. &nd ..upplements lb. guidance
set torth In Federal Management Circular
73-3 ....1l1h r...pect to cost sharing on teder-
ally-.ponsorrd research.
2. The lollowlng definItions apply tor the
purpose or thl6 attAChment:
&. Project c031..-ProJect co.l.e are all aJ-
IOW1\ble coot.6 (/1.5 set torth In the applicable
Federal coot prLnclples) Incurred by a recIpi-
ent and the value ot the In-kind contrlbu-
tlODS made by the reclplen t or third partles
In accomplishing the obJectlve. of tbe grant
or other a~eement during the project or pro-
gram period.
b. Co3t .h.arln" and 171<>lchln".-ln general.
cost 8bD-rlng and matching repr"""nt thst
portlon or project or program C08t.. not borne
by the Fedel"1\1 Government.
c. Ccuh contrlbutlon.!.--Ce.sh contributions
iepreeent the recipient'.. c....h outlay, includ-
Ing the outl&y or money contrIbuted to the
recipient by non-Pederal tblrd ps.rtles.
d. In-kind contrlbuttm..l.-ln-klnd contrl-
butlonr. repreocnt the value of nonca..sh con-
trIbutions provIded by tbe recipIent and
non-Federal third parties. Only when au-
l1borlzed by Fede".l legl.la tlon. may property
purchased wi th Fecle".l funC1..8 be coIlllld.ered
IL3 the reclplent's In-ldnd contrlbutlon.. In-
kind contributions may be In the form of
ch..rgee tor real property and non-exp..nd-
able persona.l property. and the v 0.1 ue of
goods ..nd &ervlcee dlrectly benefiting ..nd
8pecl1lcally Identl1lable to Ule project or
program.
3. General guIdelines tor computing cost
abs.rmg or IDA tchlng are .... folloW!!:
a' COst &baring or matching m.ay consist
of:
(I) Charge.s lncurred by tbe recIpient ....
project costs. (Not all chargee require C&Sh
outlays by tbe recipient during 11he project
period; eXAmples are depreciation and U8e
chargee ror buUdingz and equlpment.)
(2) Project cosl.e financed 'Witb C&Sh con-
tributed or donated to tbe recipient by other
non-P'ederal pubUc ~ncl.es and 1n.stltutlons.
and prlve.le organizations and Indlvldun.ls
and .
(3) Project costs repreeented by r.ervlcee
and real ..nd pe/"llOnal property. or uee there-
01. donated by otber non-l"ederal publlc
agencl... and Instltutlons. And prlJr..t.e org-a-
nlzatlons and Indlrtdun.ls. '\
b. All oonl.11butlona, both ca..sh and 1n-
kine!.. &ball be a.ceepted &ll pe.rt. of the reclpl-
en t., coot .ba.:1ng ..nd m.atchlng ....ben ;mch
contributIons meet all of th.e followtng
criteria :
(I) Are verUlable from the recipient..
record.:s:
(2) Are not Included.... contributions tor
any other toderally-a.ul.ted program;
(3) Are noceJl8arj &nd retl-OOnable tor prop-
er &nd elllclent ..ccompl1Abment ot proJec-l
obJectIves;
(~) An types of cbs.rg-es thAt would be &1-
lo.....ble under tbe a.ppllca.ble ooet prlnclplee;
(6) An not paid by the P'ederal Govern-
ment under anotber """Irt&nce agn.ement
(unlell' tbe agreement 1.0 &u"tbor1zed by l"ed-
erallAw to be u.eed for eo<st..lu.rlng or m.e.tcb-
Ing):
(6) An provided ror In the ..pproved budg-
et ....ben r~Ulrod by the l"eden.1 agency; and
(7) ConIorm to other proVllllon.< of Ul1.o
att..ebmect.
~. V..lu... tor reoclplent lD-klnd contribu-
tions wUI be establl'1bod In &ccordance ...-lib
the ..ppllc:able cost prlnclpl....
5. Sf><'cl!lc proc<>du,..... tor tbe reoclplents In
f":.o:.t./I.hl1."\hl;,C' t'h,. 't'r~J'l'" nr l'r'_l--lnf'l ,....,...~,....1h"-
I
Office of Management and Budget Circular A-110 (7/30/76)
tlons from non-Federal third parties arc ,et
forth below:
a. Va/lIation 01 t'O/lInteer -'Crviccs.-\'olun-
teer scrvle.es may be fl1rnl~hed by professional
and technical personnel, consultants. and
other skilled and unskilled labor. Volunteer
sen'lees may be counted a' cost ~harlnb or
ml\tchlng If the ser\'lce Is an Integral and
necessary part of nn a ppro\'ed proJ:rnm.
(I) nate.' for volunteer scrvicc.,.-Rates lor
volunteerR Rho\11d he cOI1~lslcnt with t.ho~c
paid for similar work In the reeiplent's
organl..atlon. In tho~e Instances In which the
required skills arc not. lound In the recipient
organl..atlon. rates should be conslstcnt with
tho,. pnld for similar work In the labor mar-
ket In whIch the recipient competes tor the
kind at services In\'olved.
(2) Volllntcers ~m1'loycd by othcr organ i-
zati07lS.-When an employer other than the
recipient furnl~hes the services of an em-
ployee. these servIces shall 'pc valued at the
employee's regular rate of pay (exclusl\'e of
trlnge benefits I\nd overhead costs) provided
these services arc In the same skill for which
the employee Is norml\lIy pnld.
b. Valuation 01 donated, cIpcnctablc pcr-
sonal propcrty.-Donated, expendnble per-
sonl\! property Includes such IIP-ms as ex-
pendable equipment, office supplies. !abora-
tor}' . supplies or workshop and clnssroom
supplies. Value assessed to expendable per-
sona! property Included In the cost or match-
Ing. share should be reasonable and should
not exceed the market vlLlue of the property
at the time of the donation.
c. Valuation 01 donated. nonczpcnd<1blc
personal propcrty, buildings, and land or
tLSe thereo/.
(I) Thc method used lor chargIng cost
sharIng or matching for donated nonex-
pend able personal property. buildings and
land mny dltTer according to the purpose of
the grant or other agreement as follows:
(a) It the purpose 01 the grant or other
agreement Is t.o assIst the reCipIent In the
acquisition of equipment. buildings or land.
the tot...l value of the donated property ma}'
be claImed as cost sharIng or matchIng.
(b) It the purpose 01 the agreement Is to
support acll\'ltles that require the use of
eqUipment. buildings or land. depreciation
or Use charges lor equIpment and buildIngs
may be made. The full value of equloment or
other capital assets "nd faIr rent~l chlU".((es
for land may be allowed provided that the
Federal agency has approved the charges.
(2) The value of donated property wl\1 be
determined In accordance with the usual
accounting policies of the recipient with the
lollowlng quallficatlons:
(a) Land and buildings.-The value of
donated land and buildings may not. exceed
Its fILlr market vl\lue. at the time of donl\tlon
to the recIpient as established by an Inde-
pendent appraiser (e.g.. certified real prop-
crt). appraiser or GSA representatives) I\nd
certified by a responsible offtclal of the
recipient.
(b) NonCIpCnd<lblc pcr.so""l pTO'pert!J.-
The value of donILted nonexpendable personal
property shall not exceed the fair market
value of equipment and property of the snme
age and condition at the time of donntlon.
(c) Use 01 spacc.-The value of donated
space shall not exceed the fair rental \'alt:e
of compl\rnhle space as establl..hed by nn
Independent appraisal of com,mnble space
and facilities In a privately-owned building
In the same localltr:.
(d) Loancd cqilipmcnt..-The vnlue of
loaned equipment shall not exceed Its fair
rental vallle.
6. The followIng requirements perl.aln to
the recipient's supporting recortls for In-
kind cont.r,lb\1t1ons frorn llon~Fcdrrnl third
n?:-rl,"'::
n. Vohll1leer services must be document.ed
nnd. to the extent lel\.,lhle. supported by the
same methods used by the recipIent for 115
employees.
b. The basis for detcrmlnlng the vahHltlon
for persollal sen'lces. material. equlpmcnt,
buildings and land mllst be documented.
ATTACHMENT F.--CUlcuLAa No. A-lID
STANOARUS Fon FINANCiAL MANAGEMENT
SYSTEMS
I. TIlls attachment prescribes stnndards lor
financial managemcnt systems of recipients.
Federal spOI"orlng a(:entles shall not Impose
addltlo'nal standards on recipients unless spe-
cifically provided for In the nppllcable sta-
tutes (e.g.. the Joint Pllndln!; Simplification
Act. P,L. 93-510) or other ntt..'lchments to this
circular. However, Federnl spOllsorlng agen-
cies arc encournged to make suggestions and
assist recipients In estbILlIshlne or Improving
flnnnclal manlLgement systems when such IL'.
slstanct' Is needed or requested.
2. Recipients' financial management sys-
tems shall provIde lor:
l\. Accurate. current and complete disclo-
sure 01 the financial results 01 each ledcrnlly
sponsored project or program In accorc\nnce
with the reporting requirements set lorth In
Attachment G to this circular. \Vhen a F'ed-
eral sponsorIng ngency requires reporting on
an accrual basis, the recIpient shall not be
requIred to estnbllsh an aecrllal accountIng
S\'stem but shall develop such accruBI dntB
f~r Its reports on the bnsls 01 an analysIs 01
the documentation on hand.
b. Records that Identify adequately the
source and appllcatlon of lunds lor fedemll)-
sponsored activIties. These records shall con-
tain Inlormatlon pertaining to Pedcral
awards. authorlzatlon3. obligations. unobli-
gated balances. assets. outlays. and Income.
c. Etlectlve control over and accountabilIty
lor all funds. property and other assets. Re-
cIpients shall adequatel}' safeguard all such.
assets and shall assure that the)' are used
solely lor authorlz-ed purposes.
d. ComparIson 01 actual outlays with bud-
get amounts lor each grant or other agree-
ment. Whenever appropriate or required by
the Federal sponsoring agency'- financial In-
formation should b~ related to performance
and unit cost datI'.
e. Procedures to mlnlml:oe the lime elapsing
between the transfer of funds from the U.S.
Treasury and the disbursement by the recip-
Ient. whenever funds are advanced by the
Federal Government. When advances nre
mnde b}' a letter-of-credit method. the recIp-
Ient shall make drawdo....ns as close as pos-
sible to the tIme 01 making disbursements.
1. Procedures lor determIning the reason-
ableness. allowablllt). and allocablllty 01 costs
In accordance wIth the provisions of the ap-
pllcable Feder..l cost principles and the terms
of the grant or other agreement.
g. ACCountIng records that are supported
by source documentation.
h. Exnmlnatlons In the form of audits or
Internal audits. Such audits shall be made
b)' quallfied Indi\'iduals who nre sufftclcntly
Independent of those who authorize the ex-
penditure of FedeN,1 lunds. to produce un-
biased opinions. conclusions or judgments.
They shnll meet tlle Independence criteria
along the llnes of Chapter 3. Part 3 of the
U.S. General Accounting ornce publlcatlon,
Stnndard, for Audit of Governmenul Oq;nn-
Iz.ations. Prol;rnms. Actl\'llles and Functions.
Thcs~ cXf\n1inations nre intended to ascer.
tnln tile effectiveness of the financial mnn~
agement systems and Internal procedures'
that ha\'e been establlshed to meet the terms
and conditions of the al!reemenl.,. It Is not
Intended that each agreement awarded to the
recipient be examined. Generally. examlna-
UOll;'; should be ~onductcd (in an or~nnlzn.
.,,,y,_.p..#l.... '--,no::!o:;;. 1(") '''';.t thr> (1<:.(':11 1nl"'''''''ill.\' nf
I
')
A-110:3
financIal transactloll', a.' well as compliance
with the term, and conditions or the Federal
grc.nts and other agreements. SlIch tests
would Include an appropriate sampllng 01
Federal ngreements. Exnmlnatlolls will be
conducted with rel\sonable Ireqllency. on a
cont.lnlllng b.,sls or lit ~chedulec\ Inter\'als.
usually nnnually. but not le~s frequcnt.ly than
e,'ery two years. Tile frequency of these ex-
nmlnatlon, shall depend upon the lIatllre.
sl.", and the complexity of the nct\'lIty. These
exanllnallons do not relieve f'c<jeral agencies
of their audit responsibilities, but mn)' IIITect
the frequency and scope 01 such nudlts.
\. A s,'stematlc method 10 assllre llmelv and
npprop~lnte resollltlon of audit findlng~ and
recommendations.
3. Primary recipients shall require subre-
clplents (IlS defined In pnragraph 5 of the
basic circular) to Ildopt the standnrds In
parngraph 2. above except for the require-
ment Insubparagrl\ph 2e. regnrdlng the use'
of the letter-aI-credit method Ilnd thnt part
01 .s.ubparngrnph 2a, rcgardlne reporting
(arms and Irequencles prescribed In Attllch-
ment, G to this circular.
ATTACHMENT G.-CIRCULAa No. A-lID
rINANCLAL RCPOn.TrN'C ReQUIREMENTS
1. This at\J\chment prescribes unl/orm re-
portlne procedures lor recIpients to: sum-
marize expenditures made and Federal funds
unexpended for each award. report the status
of Federal cash advanced. request ad\"8nces
and reimbursement when the letter-aI-credIt
method Is not used; Bnd promulgates stand-
Rrt'. forms Incident thereto.
2. The follo,,'lng definltlons apply lor pur-
poses at this attachment:
n. Accrucd czpcnditures.-Accrued ex-
pendItures are the charges Incurred by the
recIpient during a gl veD period requIrIng the
provIsion of lunds for: (I) goods and other
tangible property received; (2) servIces per-
lormed by employees. contractors. subreclpl-
ents. and otber payees. and (3) other
Bmounts becoming owed under programs for
which no current services or performance l.!!
required.
b. Accrued inc017'c.-Accrued Income Is the
sum of (I) earnings during a gl'\'en perIod
Irom (I) servIces ..performed by the recIpi-
ent: and (II) goods and other tlUlglble
property delivered to purchasers; and (2)
amounts becoming owed to the recipIent lor
whl.l;.h no current services or performance Is
required by the recipient.
c. Fedcral lund, authorizcd.-Federal
funds authorized Ilr.. the total amount of
Federal funds obllgated by tlie Federal Gov-
ernment lor use by the recipient. Thl.!!
amount may include any nuthorlzed carry..
over of unobligated lunds from prior fiscal
years when permitted b}' 11\ w or agency
regulation.
d. In-kind contTibution.s.-In-klnd COD-
trlbutlons are defined In Attachment E to
thl~ circular.
e. Ob/ipations.-Obllgntlons arc the
amounts 01 orders plllced, contrl\cts and
grllnts awarded. services received. and Simi-
lar transactions during a (:I\'en perIod thllt
,,'l\l requIre payment by the recipient during
the same or a luture period.
I. OuUa!ls.-Outla)'~ or expenditures repre-
sent charges made to the project or program.
They ml\Y be reported on a cash or accrual
bnsts. For reports prepared on a cash basis,
outlnys arc the sum of actual cash dlsburse-
menl.~ lor direct charges for goods I\nd ser\'-
Ices. the amollnt of Indirect expense charged.
the \'allle of In-kind contrlblltlons applied,
:'1nd the amount of CAsh ndvances and pay-
ment.. made to subreclpients. For repor\.s pre-
pared on an accrual basis, outla)'s are the
~um of R.ct\Hd ensh dl~b\1rscment.s for dlrect
<..:lH\r~C~ for ~I)Od5 :\nd :"cr\'lcc5. the nmount
0~ lnr!lr(''''~ f'~:f'f'11~(" IJH'urr,:,d. t.he \'nJur of 1n-
I
Office of Management and Budget Circular A-110 (7/30/76)
kind contrlblltlon. I\pplled, I\nd the net In-
crf'R.~~ .for drcrr.A.~"l In the ntllO\lnt.~ owt"d by
the recipIent lor f,OOilil 1\",1 olher prop"l)'
re<:elved lor servlce8 perlormed by employ-
ee:;, co~trBctor., .ubreclplen~ Bnd other
pAyee. and other amoun~ becomIng owed
under programs lor ,,'hlch no current .erv-
ICel! or performancc are required.
g. Prollram lru:ome.-PTogram Income I.
denned In Attachment 0 of thle circular. It
mBY be reported on a c....h or "ccrUl.1 basis,
whichever III used for reporting outlay..
h. Unobligated balance.-The unobligAted
balance I. the portion of the funclll author-
Ized by the Federal spon!lOrlng agency that
h.... not been obllgBted by the recipient Bnd Is
determined by deducting the cumulative
obligAtiOns from tbe cumulative funclll aU-
thorized.
I. unllqutdated obltgallo1U.-Yor repor~
prepAred on a cash' bMI.. unllquldBted obll-
flltlon. repre..nt the'-omount of obligations
Incurred by the recIpient that h... not been
paid. For reporlll prepared on an accrued ex-
pendIture b....I.. they represent the I\mount
of obllgl\tlon. Incurred by the reclpleot tor
whlcb I\n outlay has not been recorded.
3. Only the followIng forms will be BU-
thorlzed for obtaining finaoclal Information
lrom reclplenlll.
a. Ffn.oncial Statu, Report (Exhtblt 1).
(I) Each rederal 'pon5orlng agency ehBII
require reclplent.ll to lUe the etAndardlzed
Tlnanclal StatuS Report to report the .tAtu.
of funclll lor all noncorultructlon projec~ or
programs. The Federal sponsoring agencies.
may, nowever, have the option 01 not re-
quiring the f'lnanclal Statu. Report when
the Reque.t for Ad,'ance or Reimbursement
(peragrBph 4a I or Report of Federal Cash
Tran.&Bctlorul (paragrBph 3b) III determined
to provide adequBte InformatIon to meet
their needs. except that annal f'loanclal
StBtU' Report shall be required at the com-
pletion. of the project when the Request for
Advance or Reimbursement form Is u.ed only
for advances.
(2) The Federal sponsoring agency shall
prescribe whether the report ehBll be on a
c....b or accrual bB.Slll. If the Federal .ponsor-
Ing agency requires accrual InformBtlon and
tbe recipient'. a<:countlng records Bre not
normBlly kept 00 the Bccrual bMIll, the re-
cIpIent shall not be required to convert I~
Bccountlng system, but shBll develop such
accruBI Informl\tlon through best estimates
based on an anBlysl. of the <!ocumentAtlon
on hBnd.
(3) The Federal sponsoring agency shall
determine the frequency of the f'lnBnclal
Status Report for eBch project or program
consIderIng the size Bnd complexity of the
parllculBr project or progrBm. However, the
report ShBII not be requlrcd more frequentl~.
thBn qUBrterly or less frequenlly than an-
nually except B.S provided In subparagrnph
3a{ 1) Bbove. A nnal report shBll be required
at the completion of the agreement.
(4) Federal sponsoring agencies shl\lI re-
quire reclplen~ to submit the FlnanclBI
Statu. Report (orlglnRI and no more thRn
lwu c.:llplr.~) no JA.lrT t.hnn :10 c1:\~'!i' pUr.r thr
~nd or ~nch sl'cclUcd reporting period rur
quarterly "nd semI-annual reports, Ilnd 90
days for BnnuAI And nnal report.. Extensions
to reporllng due dntes may be grBnted upon
request of the recIpIent.
b. Report 01 Federal Ca"h TranMcljon.
(EIhibll 2).
(I) VI'hen funds are Bdvanced to
reclplenlll through letter. of credit or with
Treasury checks, the FederBI sponsoring
agencIes shllll require each recipient to ~ub.
mlt a Repart 01 Federal Cash TrBnAAcllons.
The Federal sponsoring nsency shllll u~e thl.
report to monitor cash odvanced to recIpients
and to obtain dIsbursement Information for
each Agreement from the reclplen~.
(2) Federal sponsoring agencies may re-
quire forecasts or Federal clL9h requIrements
In the "RemMks" section of the report.
(3) Wh~n prllcllcal and deemed neee.snry,
the Federal sponsoring agencies mBY requIre
recclp~ to report In the "Remarks" Hcllon
the ..mount of CAsh advance. In exce... of
three day.' requirements In the hnnd. 01 .ub-
recIpients Bnd to provIde short nBrrBlIve ex-
plnnll',lons of acllon. tRken by the recIpients
to reduce thle exce.J blllance..
(4) RecIpIents shall be required to submit
not mare than the original and two cop Ie. of
the Report of FederlLl Cash TnnsBctlolUl 15
working dlt~'s followIng the end of each
quarter. The Federal spon~orlng agencIes
may requIre a monthly report from those
recipients receIving Ildvan.:e. totaling "I
million or more per year.
(5) Federal sponsoring agencIes mllY wBlve
the requirement for subml!Slon of the Report
of Federal Cash TTansactlons when monthly
advances 10 not exceed $\0,000 per recipIent.
provided that such advance3 are monitored
through other forms contained In..thls at-
u.ehment, or If, In tbe Federal .ponsorlng
ngeney'. opinion. the reclplent's accounting
control. Are adequate to minimize excessive
Federal advances. .
4. Except as noted below, only the follow-
Ing form. will be authorIzed for the reclpl-
en~J In requesting advances and reImburse-
ments.
a. Reque,t lor Advonce or Reimbursement
(EXhibll 3).
(I) Ench Federal sponsorIng agency shall
adopt the Request for Advance or Reimburse-
ment as a stBndardlzed form for all noncon-
.tructlon progrBms when letters-or-credlt or
predetermined advance methods are not used.
Federal sponsoring Bgencles. however. have
the opllon of using thh form for construc-
tion programs In lieu of the Outlay Report
and Re:juest for Reimbursement for Con-
struction Progr..m. (subparagraph 4b).
(2) RecIpIents shBII be authorized to sub-
mit requests for advances and reImburse-
ments at least monthly when lellers-of-
credIt Me not used. Federl\l sponsorIng
agencies shall not require the subml.slon of
more than the orlglnlll and two copies of the
Request tor AdvlUlce or Reimbursement.
,
A-110:4
b. Outlay rcpor, and Trqlu~.~t lor Trim.
h,'T",.mrnt lor ("(l1Htruction 7"09rnJlI,'; (FT-
/lI/11 r 4),
(I) Ench Federal r.ponsorlng I\geney ~hRII
Rdopt the Outlay Report Rnd Request for Re-
Imbur,ement for Construction I'rogrnms B'
the st3.ndardlzed format to be ufCd lor rt-
qllestlng reImbursement for construction
program.. The Feder..1 sponsorlt:g Rgencles
mill'. however. hBve the opllon 01 ,"bstllut-
Ing the Request for AdvRnce or Reimburse-
ment Porm (subparBgraph 4R) when the
Federal Itgencles determine that It provides
ndequnt.e Informntlon to meet lhelr needs.
(2) Recipients shall be authorized to ""b-
mlt requests lor reimbursement nt leRSt
monthll' when letters-of -credit nre not used.
Federal sponsorlns Rgencles shBII not require
more than the orlglnnl I\nd two copIes of the
Oulla)' Report Bnd Request for Reimburse-
ment for Construction PTOgTllms.
5. When the Federa. sponsoring I\{!encles
need nddltlonRI Informntlon In usln~ these
forms or more frequent reports. the following
shl\ll be observed:
. a. When ..ddlllonl\l Information l~ needed
to comply with Icglslntlve requlremcnts.
Federal sponsoring agencies shBII Issue In-
slructlons to require reclplent.s to sllbmlt
.lIch Inlormatlon under the "Remarks" sec-
tion of the report.~.
b. When necessary to meet speelnc pro-
gHm needs FederBI sponsoring agencies shall
submit th~ proposed reporting requirements
to lhe Flnancll\l Management BrBnch. Budget
RevIew DIvision. Omce of Mana~ement Bnd
Budget for BpprovBI prIor to submLo;slon of
the reports for clearan.., under the pro-
visIons or OMB CIrcular No. A-40.
c. When a Federal sponsoring agenc)' hRs
delermlned that a recIpIent'. accounting sys-
tem does not meet the StlLlldnrds for FI-
nanel!>l Management contaIned In Attach-
mcnt F to this circular. BddltlonRI pertinent
Information to further monitor grBnts and
other agreements mny be obtaIned upon
wrItten notice to the recIpIent until such
time ..s the system Is brought up to standard.
d. The Federa) sponsoring agenc)', In ob-
t.lllnlng InformBtlon as In pRragrRphs B. b
and c above, mu',' comply with report clear-
Rnce requirements of the Office of Manage-
ment and Budget CIrcular No. A-40. B.S re-
vised.
6. Feder..1 sponsoring agencies hRve the
option of shadIng out any line Item on Rny
report .thnt Is unnecessnr~' for decision-mak-
Ing purposes.
7: Federn) sponsorIng Bgencle~ should BC-
ccpt the Identical Inlormatlon 1rom the re-
cipients In machIne usable formBI ;rr com-
puter prIntouts In lieu or prescribed forml\ts.
8. Federal sponsorIng ..gencle:; may p,ro-
vide computer outputs to recipIents ,,'hen It
will expedIte or contrIbute to the Bccuracy
of reporting.
II. Federl\l sponsorIng agencies are nuthor-
17.ed to reproduce these forms. Thc lorms for
reproduction purposes CRn be obtaIned Irom
the Omce of Man:>gement and Budget.
FINANCIAL STATUS REPORT I. '(D(ftAl AQIMCT ANO OJItQ,AHILAnOM." 'U"'HT TO WHICH .-.P"O"" II .U....ITr[D 2. "D''''' ....NT D~ .".,... 1Dt:HT1,..."Q \ ~MB ~PDrovod \ ..~. D'
"UWO,' ND. aO-ROIBO 1
(F'l'tUOtIJ t,u'lrudi07U on ell. bn.ck) ~AC[$
I. RlCIP'1[Nr ORaANIlAnaH fN~......... c_"I", edA...... i.d....ll...o, Zlr ~e~.) 4. U,.n.oY(~ IDt.Hn'lCA TlON HU" IIR l. IttCI"tHT Aceourn HU"II" Ollt ID(H1'U'TIf'tG Hu.ntlll L ",..". IU:."OIff I J. 1...511
o YU CJ NO o CASH n ACCRUAl
.. p'ItOJ(C'T/aMHT "'"00 IJ"'...,_I","",) ,. 1"'[11100 CQVtJll'tD IT TM.' "tP"ORT
,,,OW IH".f~. lI4.. ......, I TO (......lA. .... ....., !"AON I "'..'''. d... ..., I TO ,.Ilf_Il., ~O.. .....,
J. STATUS OF F\JHOS
(.) (b) (.) (d) (.J (f) TOT~L
P ROO R~M S I FU NCTlONS I "CTIVIT I ES ~ (g)
r~et ouU"ys previously reportM $ $ $ $ $ $ $
Total outleys this te~ort period
[..fU: Proflnm Income credlh
Nf't outlays 'hi, ,e()ort Dt!riod
(Lin, It mi""J li", c t I
Net outleys 10 date I
(Lin" 4 plu.. lin, d) , .
i I
Ltu.' Hon.Federltl shAre of outlay'
Total Federal !her. 0' outlay'
(Li"~ e! minu, rin, IJ 1
I I
ToUI unliQuidated oblillatlon'
Lt'4: rfon.F&dflral shar., of unliquidated
obl111tlonl !hown on IIn. h
F~f1rlll ,hltl 0' unllquld.t8d obligation, .'
Tot!1 Feder"l shere of outlays and
unlIQuidated obH,..t1ons
Tot.1 cumuletivl amount of F,denl fundi
authorized
'. Un"bllgettW! blllflnc:a 01 Fedlnllundl
.. TYPE 0' RATE ,."OVISIOHAll 0 PRtDntANINW u. tl,"lnCA flON SIGN" TURE OF "UTHORIZEO CERTIF'!'ING DATE REPORT
(PI=, ",T" in "1'1""0"";01' b<n) 0 0"..... o ....D I cortlly tD tho _t DI my knowlod.o ond M- OFFlCI"L SUBMlrTEO
I.
10."feT Ie. 8AS[ I d. TOT At. AMOUNT I" 'tDEAAl IHARI lief thtt thll report II correct .nd c:omplett .nd
tMNU b. RAn;
thAt ,n outl.Y" .nd unllquld.tttd oblllrsUon, TYf'(O OR PRINTED H"ME "NO TITLE TELEPHONE (",..a ,lJ'1'.
. ,,.. for the purpos.. ut forth In the .....n:t ,",14mb.,. 4"d nr"U1O'ft)
.. It'W"RKS: ,411_'\ .... n~t"...... <11.._..4 ____. (1r i..,~,,,,.. ,....'." ay F___ .............W......,.. ~pl....... lIlI'iI'\ doc:ument1.
'"CII..........~ 1.00uL.tioo'l.
')...10\ EXHIBIT 1
UA"'OA-O '0"" u. (7_151
~n-cI'1l:l.cl tly O""t.:. 0' ...."..."'.", _nd Bud..'
CIR'CUl...AR: ...0. ,A,.ll0
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_e
Office of Management and Budget Circular A-110 (7/30/76)
INSTRUCTIONS
Please type or print legibly. lIems 1.2,3.6,7.9. lOd, lDe. 109. 10i, 101, 1 Ia. and 12 are sell.explanatory,
specific instructions for other items are as follows:
,..... Eft I",
.. [n'flf the employ.' Identlncetlon number BulBned by
the U.S. Internal Revenue Servlc.e or nC( (inrlihrtion)
code, If required by the Feder,1 lpon'-Oflnl a,ency.
5 Thl. speee It ",MN.d for en eccount number or athf'f
identitylng numbers that may ~ auilnf'd by the
recipient.
8 [n'er the month, day, end yee' of th,1 bef(innlng and
endln, of thi, project period. for tormula ,ranh thet
In: not aw.,decl on III profect. balis, ShO'" th. Brlnt
po nod.
]0 The PUr))OU, of ",ertlcat column. (e) throurh Cf) Is to
prol/ide fmanclal date tor net'! prorrem, tunctlon, Ind
ec1..I'i'ity In the. budRft as IPprovtd by tht feder,l ll\On.
SO!lnf! 'lenC)'. It additional columns life "ee~ed. use tIS
men)' ,ddltionel forml III nKded end Indicate paSt
num~r In 'pac~ proy'd~d In upper right: however, the
tatels ot all pro8"8"11, 'unctions or ectiyltles should be
shown in column (g) of the flf"!t pere. For eft'reem~nts
pertelnlnB to Myerel C2Ihlog of Federal [)om.,tlc
Msistance pro"rams that do nol reoQulre e further
functional or ectlvtty c.llluiftcation breakdown, enter
under columns (a) throuEh (f) the tjtl~ ot the prorram.
For 'nlntJ or ather auistlnce attr..ments containing
muttiple programs where on~ or more prOErllms reQuire
e further breakdown by lunctlon or IctlYlty. use e
s.eperate torm for each proS'f'8m showing the applicable
functions or aetivlties In the uparate columns. for
gdlnts or other enistence aEreemenb containing seY'
eral functions or activities which are funCled trom
~f'8' programs. prePl.re a 'uP.rlte form tor aach
Ac:tlvtty Or tunction when requested by the federa:
a.ponsorlng -a,ency.
lOa Enter the net outley. This .mount snould be the ume
as the amount reponed In line 10e of the test repo"~.
If there hu been an adjustment to the amount shown
pr'WV)Ousty. please anach explanation. ShoYf' lero If this
ts the inttl~1 report. .
lOb Enter the tetel rr'08S pro~rllm outleY' (leS! rebatt"l.
refunds, and other di$Count5) 10r this report period,
lncludlng dlsbu~emenh of c.alh realized 10$ progrwn
incomt.. F()( Aports tNt are pfCP.~ on a c.ash
basis. outlaY" ar. the sum of 8ctual cash disburse'
m.r:ts lor goods Ilnd s.ervices. the amount of Indirect
expense chars:e<I. the value of In. kind contributions
applied. end the amount of cash edwnces and
paym~nts made to contractors end subgf'8ntus.. For
reports prepe~ on 8n accrued ex~nditu'e basl!l. out.
lays a,e: the sum of actual cash disbursemenh. the
emount of lndlred upenStl incurred. the yalue of In.
kind contribution!. ItlPht<:. and the net Increase (or
decreaM) in the emounts o~ by the reclpien~ 10r
roods and other property rt"Ceived and for .ervtcu
~r1ormed by employees, contracton. .ubgrantees, and
ciner payen.
,..... Eft''''
l()C [nt., the amount 0' .11 prOR,am Income rullu:d In
this period thet is re-oui,td ~ the terms and con.
dittons of the f edual award to be oftducted from total
pmlf'Ct costs. ror reports pr""''''l'd on , cuh basis,
en',r the ,mount of cesh inc"rn. r"c"i""ed du,inR the
reponing PI",tod. rOt report, p,eperr<l on en accruel
basis. entr' the emount. 01 Income runt!(! since the
be,innini of Ihe reportinl': period. W'htn the terms or
conditions allow prOf,am Inr:ome to ~ added to the
total IlwIlrd. explain tn remarks, th~ lOUrCt, amount
and di~posltion of the Income.
10f Entt'r amount pertlllnl"B to the non.Fe-Oerll share of
PfOlram outleY' Included In the amount .~n line ~.
10h [ntrr total amount of unliq.uldatt'd obligations tor this
project or program. including unliquldflte-d obligetio",
to lub~rln'eel end con'ractors. Unliquidate-d oblige.
tions Ire:
Cash bnls.-obllRstions Incurred but nol.paid:
Accrue-d expenditure blli1o--Oblisations Incurn:<! bu1.
for which. an outlay hiS not been ~corded.
Do not inClude eny amounts that haye b<et!n Included
on lines II thrr.,urh ,. On the final report, line h should
haye . lero balance.
101 Enter the Federel shere of unliquldate-d obligations.
shO'W'n on line h. The amount shown on this line should
be the dinerance between the amounts on lines h end I.
lOk Enter the sum of the emounb shown on lines E and J.
If the ,epen Is final the report shouk:! not contain any
unllquh:'at'ed obUlatlons.
10m Enter the unobligated balance of Fedef'!,l tunds. This
emount should be the difference between lints k end I.
llb Enter rate In enect during the reporting period.
lie Enter amount of the base to which the nte wu applied.
lId Enter total amount ot indire<t cost charged during the
re port period.
1 le tn'e' amount of the Federal share chllpe-O durini: the
report period.
If mOAl than one rete was applied during the project
period. include I seperlte schedule showins bil~e5
against which th~ Indirect cost retes were applied. the
re500ctiye Indirect rates the month. aa)'. end year the
indi~ rat~ were In eflect. amounts of indirect u'
pense char(l:ed to the project. end the Federal share of
indirect expense chlrsed to the project '0 date.
A-110:6
.
...
I
-\
I
:1
Office of Management and Budget Circular A-110 (7/30/76)
A-110:7
Approved by Office of t.(anaRemflnt and Budft.-t. No. BO-RDl82
FEDERAL CASH TRANSACTIONS REPORT 1. ~edeul ~s.orin[ "a>nC'J and o"'fliulion.l .le....."t \0 which Itli, upon
II lubmln.d
(See in.structions on the bcuk. If report i.. for more than one $Iran t or
assistance agreement, attach completed Standard Form !7f-A.)
2.. RECIPIENT ORGANIZATION 4. Ferci.nl Innt 0( ot.... icl."tifia. 5. 'hcipi.nt'1 KeO\H,1 "wmbt, '"
lion filumbet' io.ntityif'l' f'luml>er
Ncm~ : 6.. leU" of uedil PlumWt 7. lift p-y",.nl 't'O!K:htr MIPnt..f
NII",hn Give total number for this period
Clnd Strut :
8. Payment Vouchn u.dit", I. 51. lrWIUry chrc\. JK.i"td (UJM.th rr
)'OUr ac::counl t1f' t\OL dt:po,ittd)
Cilt!. 5141. 10. PERIOD COVERED BY THIS REPORT
...a ZIP Cod.:
3. FEDERAL EMPLOYER ~ FROM (mo"rh. uv. YfIOr) TO ("'0'"(.11.. dor )'(or)
IDENTIFICATION NO.
a. Cash on hand beginning of reporting period $
b. Letter of credit withdrawals ",
11. c. Treasury check payments
STATUS OF
FEDERAL d. Total receipts (Sum of lincs b and c)
CASH e. Total cash available (Sum of lines aflnd d)
f. Gross disbursements
(See specific g. Federal share of program income
ins truc ticm..~
on the ba.ck) h. Net disbursel1li!nts (Line 1 minus line p)
i. Adjustments of prior periods
j. Cash on hand end of period $
12.. THE A\10UNT SHOWN 13. OTHER INFORMATION .,
ON LINE IlJ. ABOVE,
REPRESENTS CASH RE. a. Interest income
QUIREMENTS FOR THE $
ENSUING
DaV8 b. Advances to subgrantees or subcontractors $
.
.
14. REMARKS (A ttaeh culditJion.al sheets 01 pla.in paper, if more space is required)
15.
CERTIFICATION
SIGNATURE
DATE REPORT SUBMITTED
I certify to the best of my
knowledge a nd belief that AUTHORIZED
this report is true in all reo
spects and that all disburse" CERTIFYING
ments have been made for
the purpose and conditions j OFFICIAl..
of the grant or agreement
THIS SPACE FOR AGENCY USE
TYPED OR. PRINTED NAME AND TITLE
(Ar... CocU)
(N.....b....-)
(L':tuwtc" 1
TELEPHONE
272-101
EXHIBIT 2
STANDARO rORM 272 (7-76)
Pre'S.Cribttd by OffIce of ",.hn7l&~m.nt ",nd Bud€-t
'.
I P')
.1
Office of Management and Budget Circular A-110 (7/30/76)
A-110:8
INSTRUCTIONS
P1tlZl~. type or print legibly. Items 1, 2, 8, 9, 10, lld, lle, llh, and 15 are self explanatory, specific
Instructions for other items are as follows:
1'-
E"lry
3
Enter employer ioentification number llulgned by the
U.S. Internal Revenue Service or the FICE (institution)
code.
tf this ~port coven more then one grent or other
agreement, lellve Items 4 and 5 blllnk end provide the
informlltion on Standard Form 272-1\, Report 01 Fed.
erel Cash Trans.actiolu--Continued; otherwis.e;
4 Enter Federal grent number, llgreement number, or
other Identifying numbiln il requested by aponsoring
Ilgilncy.
5 This space r~rved for an account number or other
Identifying number thllt may be assigned by the re-
cipient.
6 Ent., the tetter of credit number that Ilpplles to this
report. If 1111 lldvances were mllde by Trellsury check,
enter "N^" for not llppli~ble and leIlve items 7 and 8
~nk.
7 Enter the voucher number 01 the last letter-ol.credit
pllyment voucher (Form TUS 5401) thllt was credited
to your llccount.
111 EnU!r the total emount 01 Federal cash on hand at the
beginning of the ~porting period Including all of the
Federal funds on deposit, Imprut funds, and und&-
po$ited Treasury checks.
llb Enter tab I llmount of Federal funds /"1IC1lived through
p8yment vovcheo (Form TUS 5401) tnat were credo
Ited to your accOunt during the reporting period.
llc E~ the total llmount of ell Feder&! funds received
during the reportio<< period through Treasury checks,
wOethM or not d~ted.
Ilf EP!ter the iota I F~I cash disbursements, mllM
<louring tn. ~ period, k1<:ludlng cash received
H ~m in~. Disbursements as used here also
Include tne amololnt of lldvanc~ and payments ~
rMvnds to 5ubgPll"tHS or co"~acton, the iross
amount 0{ dir&e:t salariK and ~K, includini the
E"t~
Itnn
emplopee's shllre of benefits II treated liS a direct cost,
interdepartmental charges for supplies and services,
llnd the lImount to which the recipient is entitled for
Indirect costs,
lli Enter the Federlll shllre of progrllm income that was
required to be used on the project or program by the
terms of the grant or aliree":l.~nt.
lli
Enter the llmount cf all lldjustments pertllinlng to prior
periods llffecting the ending blllllnce that hllve not
belln includ~ in any lines ll00ve, Identify each grant or
IIgre-ernent for which lld/ustment was mllde, and enter
an explanation for ellch adjustment under "Remarks."
Use plllln she-ets of ~per If additional s~ce is required.
llj
Enter the total llmount of Federal cllsh on hll nd lit the
end of the reporting period. This Ilmount should include
all funds on deposit, imprest funds, and undepos.ited
funds (line e, less line h, plus or minus line I).
12
Enter the estimllted number of days until the cash on
hand, shown on line Ill, will be expended. If more than
three days cash reqirements are on hand, provide an
explanation under "Remarks" as to why the drawdown
wes made premlltu~Iy, or other reasons lor the excess
cash. The requirement for the .explanation does not
apply to prescheduled or automatic advllnces.
13a
Enter the emount of Interest earned on advances of
Federal klnds but not remitted to the Federal agency.
II this Includes eny amount ellrned llnd not remitted to
the Federal sponsorinr lIgeney lor over 60 days. explain
under "Remllrks," Do not report Int&fest earned c>n
udvances to States.
13b
Enter amount of advance to secondary recipients in.
cluded in item llh.
.
'\
14
In addition to providing explllnatlons IlS required lIoove,
,ive add itiOnll I explaOlltion deemed necessary by the
reej~nt Ilnd for in-~tion required by the F.derlll
sponsoring lIgeney in complillnce with governing legis.
lation. USIl plllin sheets of paper If lldditional spaCt i~
required.
'"
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.1
Office of Management and Budget Circular A-110 (7/30/76)
A-110:9
FEDERAL CASH TRANSACTIONS REPORT
CONTINUATION
(Th.. J""''' i-o r.ompl.,.d "nd oWuh(d 10 Slo..dnrd F,,"" Ht ""Iv ",h."
'Yt.portinp m.(;1"l than 011./ pro.nf (If' (l~,utn.Jl('e (J.prttm.~Tlt.)
'2. RECIPIENT ORGANIZATION (Gi,o. ",,,"" onlV "'. ,hou", i" il.", t, Sf"
t7t)
'Approved try Office 01 M&n.a~em~"t enc Bud;_'. No.
80.R0162
TfWERAL SPONSORING AGENCY -iND ORGANIZA'
TIONAL ELEMENT TO WHICH TH16 REPORT IS SUB.
MITTED
3. PERIOD COVEREl) BY THIS REf>oRT (A. .hlMl'" 0" Sf"
t7t)
fROM i~oPllh. 4a" ..-...)
TO fH_'''-. ~,. "or.o"1
4. List inlo(m.tion below to, ..th ~'.nl or other .greement covered by IhlS report. Use add,lionel forms if mo'. sp.ce IS reQu"ed
fEDERAL GRANT OR OTHER IOENTlfl RECIPIENT ACCOUNT NUMBER fEDERAL SHARE OF NET DISBURSEMENTS
CA' ION OR O1H[R
IOENTIF'YINC NUMBER ..[1 OlSBURSEMEN1S tc;...., CUMUL^T1VC
ro^OW 0 ,ubdivisu,ft bv other &denti- "1.t>"'I'.~..,,,h h.. r."""'" -- HO DISBURSEMENTS
Iymg num.b",.. if ....equirtd bv th. U'__ U't'n.rd) FOR AEPORTlNG
f .d...al Sp"."oe'""f .Ag."CV) P[RIOO
(0) (bl (e) (d)
$ $
. ,
,
.
-
\ .
4- "I
.,
5. TOTALS (Should c",",up<m.d with """,u"" .lunvn on Sf" !:7t ....1
jollo\L',; cO~\Lmn (~J 1M 1IQ.m.t. c...~ linf 1 Jh; coJu-rr.?\ (d) tht .1''''' of lines
J Jh and J II, d thl$. SF 1..71.. end cum.ulative dubunemcnt.! ,h(J1.O"n on 1
(~t YcpO""'t. Attach lI:pLa.n.atW7\ 01 ar.v diDeren.t;u..) $ $
.
2n-..Ol
STANDARD FORM 272-1-. (7.76)
Pr..nlt..~ ~y Ollil:"" ('/ Monot>..1'T'....., <r>d 8\Hl:t..1
Qfflte qf Management and BudQlt
,
.cular A.110 (7/30/76)
.1
11. COMPUTATION OF AMOUNT OF REIMBURSEMENTS/ ADYAHCES REOUESrrD ..'
(a) (.) (e)
,
PROGRAMs/FUNCTIONS/ACTIVITIES ~ TOTAL
ao To<<ol p"'fram (A. 0/ dat.)
out1-rs to date $ $ $ $
b. LA..: Cumwlettve DtOI'ram Income
c. r~ rF'"m outla)'l (Uiow a ...iouoo
d. Estlmal.-l n.t cash outIe)'l k>< advanco
p.rIod
a. ToUl (S..... 0/ MOO' '" d)
f. ~.Fede...I~,.. of amount 0t'I Kne I
.. Fe6erat .hare of amount on line I
h. F oOeral payments previoYsty reqyost.-l "
I. :::'::11i~oM IK>W reqyuled (Li~ g
,. MYencea required by lat month
month, _n roqyHled
by Foderal rnmor a.aney
for u... in makinl pnto 2nd month
sch<<:l"led .dV8ncel
Jrd montll
REQUEST FOR ADVANCE
OR REIMBURSEMENT
(Sef t...t,.,.C'ti07\4 OK ba.ek)
~AL SPONSORINC AC[Hey AND ORGANI IONAL [LEMENT 10
WHICH THIS REPORT IS SUBa.UnEO
L U'PLOY[R ID[.NTlFICA,nON
NUMBER
7. R[CJ~[Nrs ACCOUNT NU"BER
OR IDlHttrYlHG HUMBER
to RECIPlUn OR~ILATlON
H._
H_'"
eM .',MC
C.....8.....
..J Zlr Co..&. :
Approved by Offico of Mono.emenl and
Bud.et, No. BO-ROI83
"ACE
OF
1.
TYPE or
PAYMENT
REQUESTEO
e... ....... ~ MiA. .....
o ADVANCE 0 :~~!URS[.
b. to .0... .r~a. ...
.Aau
2. 81.S15 Of R(QU[Sl
o CASH
o .ARTIAL 0 ACCRUAL
i,--;;;;ATlAL .PA'Yti[NT R[OU~
NUMBE.R FOR THIS REQUEST
o F'NAL
4. FEDERAL GRANT OR OTHER
IDENTIFYING HUM8E.A ASSIGNED
8'1' rE.DfRAl AGENCY
a. PERIOD COVERED BY THIS RE UEST
rRO" 4_U.. tIa.. ...,.) TO C-v.. ..... .-..)
10. 'AY[ Oflwrr...t...d...... _c ",,'~_I u.- u- J)
N_..
H_'"
.-4...,._
e"...s.....
..oJ 2'1' i:0d0 :
12..
ALTEPmAll: COMPUTATION FOR ADVANCES ONLY
$
s. Uti"",'od Federal ca5h outlay. Iho' will b6 moda dun", p.rlod COYenId by the odvol\C9
b. L.a.: Estimated twJlenc.8 of Feder.1 ealh on hend a. of berinning of advance period
c. Amount requH4:ed (Un.c 11 mlM&l liv b)
11.
s
CERTIFlCA'f"ION
SIGNATlIRE OF AUTHORIIED conlNINO O'flCIAl
DAT[ REQUEST
SUB"ITTED
I ctrttly lhot '" the but of my hnowt.-l..
and belief the date .boYe .re correct .nd
tMt all outlays were made in accordance
Mth the lrant condition' or other ..,.....
"._m .nd thet peym.ent i.. du. and h... not
_n pnrvlou5ty F9qultOtecl.
nno OR. ...UHT[D "AJ.I[ AND TlTL[
............
TQ.[",",ON[
Ns apace lor apM)' ....
'>'0-101 EXHIBIT J
Federal Grants ManaQement Handbook September 1978
A_ c.4.o
H_t._
.TAI'4o.u.D ro-.. no (7-76)
'""~rt~d b1 ()fftu of M.,.....ment .,.d 8,,~
CIRcuL loR NO. 10.110
A-110:10
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Appendix I
I
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,
I
Office of Management and Budget Circular A-110 (7/30/76)
A-110:11
INSTRUCTIONS
Please type or print legibly. Items I. 3. 5. 9. 10. 11 c, 11 e, 111. 11 g. 11 i. 12 and 13 are self-explanatory:
specific instructions for other items are as 10lfows:
If"" Entry
Indicat. wheth~r 'eQuut is pre-pared on cash or ac.
cruf'd expenditure balis._ All request' for .dva,"ces
,hall be prepered on II cash basis.
lnter the federal grent number. or other identifying
number es.sisned by the 'federel sponsoring agency. If
the .dvence or reimbursement is tor more then on..
'1"801 or other agre-emenl, lourt N/^; then, sho..... the
aglrellste amounts. On I ~pa'.te .heet. list .ach
grant Of 1lB'f"Mment number Ind the Federal ,hare of
outlays made egllinst the g,ant or .gr~me"l.
6 (nte, the emp'oyer Ide-nlilitalian number as.signe-d by
the U.S. lohrnal Reovenue Service. or the flCE (inslitu-
hon) cocte if ~ue-sted by 'he Feder.1 agency.
This ,paCt is (nerved tor an account number or other
kSentityinc number thet may be auiBned by the
recipienl.
8 Enter the month. day. and year for the beB'inning and
ending of the: pe-riod eovered in this fflluest. If the ,....
Quest is. for an ad"ance or for both an ad"ance and n-
imbvrs.ement. show th. period that the advance wifl
cO'I"8r. If th. r.Que's.t II tor reimoonement. "ho,," th.
period lor whieh the reimbursement is requested,
Note: The Feder'lll sponsoring agencies hav. the option of
requiring re-eipie11ts to comp'ete items 11 or 12. but nol
both. Item 12 should bI us.ed whe>n only e minimum
amount of intormetion is ne-e<Sed to make an ad"ance
and outlay intormation contained In tlem 11 can be
obtained In . timely manner trom other f'e'portl.
11 Th. purpoae of t"'e vHttcal columns el). (b). and (e). is.
to pro\fide sp.ece tor separate cost breakdowns when I
rroject has been pla"nHl and bYd@et!'d by program.
tunction. or activity. If additional columns ere needed.
Ilt"m Entry
use as m...ny additional torms. as nf'e'ded Bnd indicate
pase number in space pl"OYided in upper right; t\oorN.
ever, the summary totals. 01 all programs, lunctions,
or ac1i"ilics s.hould be ihown in the "leul" column on
the first pale.
J le Enter in .'15 01 dlllc". the month, day, and ynr of the
ending 01 the accounting Cl'eriod to whirtl this amount
.ppliu. En1er program oullays to dalr ','et of retund,.
rebatft. .nd dis.counh), in the' eppropnele column"
For raqut'1U prepared on II cash buis. outlays ere the
sum 01 actUAl Ulh dis.burs.eme'nts lor roods and s..erv.
len. the amount of indirect e.pens.es ehafled. the
value of in-kind contribuliOt:'_' ap~ied. and thc amount
01 ush .d,,"nen and f)4Iymentl made to subcontnc.
ton and subr-:cipienh. for requests prttpftred on .n
accrued expenditure basis., outlays are the sum of the
actual cash dllbun.cmenh, tht. amount of Indirect 81.'
~nu~s. tnCuffed. end the net Incr~as.c (or de<:reas.c) In
the amounts owed by the reciptent tor roods. end other
pro~rty rece-ived end 'Of .ervice1o ~~ormed by em'
pI~es.. c.ont~cn. subgranlees and oth.r peyee~_
11 b Ent.r the cumulative cash income reccl"od to date. tf
reouHu e" prepared on a c.ash balis. For re"Qut"St1
PAper..cS on an acctve<l t1Cpendttur. bas-is. enter the
cumulative income Nmed to dete.. UndO( _tlh., basis.
enter only the amount applicable to prognm income
thlt W'a>'S. rf"Qulred to be us..ed tor the project or pro--
,ram by the terms ot the Bf'8nt or other agreoement.
lId Ont)' when milking requests tor adVlSnCI payments.
enter th. total estimated amount 0( cas.h outlays that
"",II be made during the ~riod coYered by the advance.
13 Complete the certification befon wbmit1ing this
reQuesl.
.
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I
.I
Office of Management and Budget Circular A.110 (7/30/76)
Appn.'lved by Office of Man.,emen! end ......CE or
OUTLAY REPORT AND REQUEST FOR REIMBURSE. Buds"'. No. S(}-ROIBl rAQES
MENT FOR CONSTRUCTION PROGRAMS 1. 0"( 0' "(QUfST L ""'SIS 0' REQvtsT
(s,., ;ft.'T"Vct,~ ~'" bade) o 'INAL o ..,.".,TIAl o CA'H o ACC~UAL
J. HDERAl SPONSORINO AG(NCY __NO O'lU~AHI1ATlOttAl lL["'V(T TO 4. HOERAl GRAHT 01' OTH[P L .....lI:lIAl PAYMeNT R[QUEST 1'10.
WHICH 1HIS R[PORT IS SUBMlntD IO(HTlNIMO HU"'U" "S.$ICNtD
BY 'lO(ML AGENC,
L ~~~lBO[YR[R IOEHTlnCA.TIOH I" O(C,""NT ACCOUNT 00 OTH(O "-1100 coroo I'T "." M.P'O<<T
IDENTlFYIND HUhCB[A
,,,OW CN~ ~,. ..-.) 10 c"'...u."...,.__)
'0 REC1"I[HT O,.QAHIU,T10H 10.. I"'...YU C ".~.....II ...-u... -.I U ~_-.J u.- u..- 'I
N_ , N_ :
t-'.. .~ N..~
...- , ...... :
Cu" ""..
"tAU .....d .1.~.'" ....l
rIP C..d.: ZI' C....:
II. STATUS OF FUNDS
PROGRAMS-FU N CT 10Ns-.o.CTlVI TI (S
CLASSIFICATION (..) (b) (e) TOT-'L
..-
.. Administrative foxpenu S $ S '. S
b. Preliminary expens.e
c. Lend. Itrvctures. right-of.way
d. ArchltectullIl engineering belle 'eon I
.. Other erchlte<:tural engine-enns fe-es
I. Project Inspection fen
5. La nd development
h. ReloceUon expense I
i. Relocation paymerits to Individuals and I
businesses
J. DemoHtlon and removal .
k. Construction end project Improvement I
coot
I. E.ouipment
n. Total cumulatiye to date (sum oi'line-l I I I
8 thru m)
o. Deductions tor program income
p. Net cumulative to date (Line n minus I
line 0) .
C. Federal share to dah
r. Rehabilitation 8rants (100% reim.'
bursement)
.. Total Federal share (sum of lines C I
and r)
t. Federal payments prf'viously ~. I I
Quested
U. Amount ~Quested lor reimbursement $ S S Is
v. Perce-ntBse of physic:.al completion of
project Cl' % % %
'"
12. CERTIFICATION !ICNA.TUR[ or A\fTHORII[O CERTlrvlNC I OAT( O(PORT
OHICIA!.. SU8MIT'H,D
1 certify thet to the best of my knowledse
ond belie' the bille<l costs or disburse- .. R ECI PI (NT
TYPED OR PRINTED HA.M( A"O TiTlE I HL(p~ONr ,.- ......
ments are in accordance with the terms .._b........ .,_1
ot the project and that the reimbursement
represent, the Federal shere due whlc" DJ\.n SICH(O
SIG"'l"TU~[ or MTTHORIZ[O C(RlIrYINC
ho. nol been prsviously reQuested ond Oft ICIA!..
that an inspection hilS' been per1orme-d b. Representativ~
ond oil work i. In accordance with the ct'rtifylng to line
!lv. I TYprO OR PRINUO ......( A"O TIlLr TEl[P,""ON( ,A.~_ ~~
terms or the eward. ..-.b" ... _............1
-
m. Miscella neOus cost
271 101
ST,,"'O,l.RO '011" 771 17_16~
",.,(~,t-.~ t.~. (1"'(' 0:'>' u."...,...,.,...... .n(l f\...~
EXHIBIT 4
A-110:12
. '\
I
I
Office of Management and Budget Circular A-110 (7/30/76)
I NsrnucnONS
PI~" typQ 0< printl"glbly. l\em. 3.4.!5, 8, 9, 10. lis. llnd 11v are ..1f....pIM'...lory; specific instructions
lor oth.r hem. .,. as tollowo:
h~
........
~.,.. ..... ......"."'.t. ~. H the reQu~ .. "na-(, the
._........ ....e4 ......W ...,.,.......t \he .~I oo.c. 0( the
~
!Ihnw wt\eth_ ..novnts .re 0f'I'"'tt'....... en ... ~rved
...,..ndtwN ., ..~ Ih.~.wt .........
, ,....., ..... .1ftJ'......' lOIP"tlf'tc.a116n ..um~r ...-I6rned by
the U.S. In1..rn.I'l'C R..,.".. s..vk:eler nef. (kldttvtton)
ood. M r-qu_ ~ _ foodonol _..cr).
T This -1M" k ~ tor an aC'ClOUnt. numb<< 0( 1D'th.....
I6enUly1ntl __ _ mey M ._Ior..... by -
......0\.
II no. ~ ~ _I _m... tellhrough Ie) 1& II>
r..w;th ~ 1M a.t(WBt. ...c. ~~ \III'heof\ ·
-'lI4I p~ .... ~ ~"".... ...... ~ed by pn>--
I"lfn, hHte+tofto ef M"ttvttr. " M~ ~nc .~
~.cj. uw ., ....ny addl'rtol'lel tenns .. ,....,cIed .rMI.
~b'. ,..,.. ...........r .... ,..... ~ in ..... ri<<ht;
~r. toh. WMfnary toNk .f aM ~l'1)ftWm&. tv....
"-n., N .~ ahould t., ~ ~" ,he "'"total"
eoIumn .." an. .,. ,.... All ~ .... ,."".r1e4 eft
. lftImu....... be......
1 U In_ ........... .,..nded '-r _k ~. K -. Io.gal
_. _I. of _Ichoc .nd ..... _ admlnlotnltw
~.... ~. tt._ ."'lMInt of lntert!llt ~
"",.n ._ by pr'Ofn... 1ePl<rt'-. 1Jee .-
h amount I'f ~ ........... . ..p-...... Ilh......
I H. __ _ ,.-Inlng .. .... -" of ..,.t;nc .nd
eesicnlnlt. III"leking su,..,..,..s .ft4 maps.. .."lOnt "-'t
"",.... .nd .. _ """" .-.1..... prior II> -,
.4>0....,_-".".
1 h _ .R .m__ directly _ wItl1 .... ...,.,w.
_ '"' lend, ....~C strvctu_ .n4 raleled riIIht-ol-
_.
lW _ _ _.... _ '"' ...hll-.nl en&,~
] 1_ EM<< ~ Hehlt.ctur-.I e.n.,.........,nnc ~. Do not
~nc:luck ..,.., .......,trts ........,.. ... .... d..
lIt l~~.....".,.......... of __~..aion end
...w...l ~
llg E_ all __ __ _k.... __ 0(
Ie".j ......... .... ~ ,~ of .... wnnt ;. lend
",,--_. The .......... ,....in;~ to lend "-lo9-
...-( ...........,. _ed ~h -;or -~
~ M ~4.4 tN.m ""'" ~teeoty ~ _nten,d Oft
-"-
Ilk lroM.-_ __ ~ ~ ~--
~.~.nod ~ IDO'St3 of ~n( ~t.-
~c t-.t ...-ort). 00 ftOIt Wtchlde ~na .-.d..cf tor
~ton Mtnintwlnrti~ ...........-&: theee amounta.
~ be Wwi...... ... ~ ...~ on hnc ..
IIi f.1'rt4r.... ."'Ount..t ~1oI'l pail"""enb ~ ~ tfte
rK.ip~ ~ ~jspUead ,...,...onl., 'amoK. businea$ con.
~ml. and nonpt"Oat OI"Isnl&ftionc.
,.....
,--.
t U (r.cer P"'O'fI& ....'-ne-s .fIId ~ 0{ .mploy... 0( the
Ndp6.n( .ftd ,..,..-nts to thiird petty eontr&cto" (ti.
...c::Ur ~ in JM'f1onn'ng d~tOn or ,~I of
aruc:tur'w'l, 'f'Om ~ &flond. AA proc-..ds trom ,he
..... 04 ....,... Of' the ~I of d Ndut.. ..hOuk1 be
credited to ItUa .c.count; thentO)' ,..ftKtinl net
ef1i'OU..u. j( f'iIICIUu..d l')' th4I r., e n I afI. f"C)' .
Ilk E....r ttto.e .rnowMs euociftted wf1h the actual con.
IlIIrVC:tion of. .octit~ \10. Of re-stor.Hon 01 II facilil)'.
/ithto. tnc::6uck in th.. cat~. the amounts tor r'lroj.a
tm~ M'Ch .. .......,.". .,,....,'. le..oIoUp'''8.
and 1IPtirc.
III EM- ernounU Jot a" ~utrme...t. bath fhl.c:1 and mo.....
abk., ..ckl~" eqvlJ'lf'nent ut.e'd tor construction. rOf
UAmpN. penna...ntty ,.,tt.ached Io8bot'atory tabl.,. bu~.
I" Mldio ~ ~MnL. "'0't'1Ib&. onkl, CMin, and
Iabonolory oqu;pn-.L
11", ~"",.,.."ounb'Ot all ~I no( 1p.e<:It\cftUy men.
-... Mow.
11" [nt.,. ttw \iIotJJf. eumwletfw ar'l'lOOM to dete which
~kI ~ ..... ~ 0' ..... a "" rourh m,
llA lbtter the teOol amount of progrBm Income eppliod to
tt'K' rant ~ contrBd ...,...ment axcept Income In.
....... ... ...... J. klentHy Oft . Mp"reh .h.... of peper
~ aoun:as aAd typea eI the '~m..
11, !M.,. the ne( cumul.etiw amount to detr which .houkj
.. the .~ shewn on Nne n minus the amount
... ti". o.
1~ am..- the foeden,f ",...,.. 0(..... afT\OOm s.l\ooNn on line p.
l1r Enter the anMMIfC of nthebUttatlon .,..nt peymenil
....0. to ir"lCtNWueh -0." pMJC,..m "'i.~et*on provK:ln
100 -" peyo.- .,. lho Fed....1 ....nC)'.
lit Enter lho hotaI __ ,.( ,_...1 po~ts pn<'iou.ly
___ II _ form;' _ lor ___g r..m.
.......--..
11~ __ _ _..t now ~nc r-q_ fer -.......
..-..nt. ~ ~ -..hovld M th<< -'i".-c'enc.. bortwe..n
ItM: ............ ~ Of\ ~ I .nd t. If difteunt, n.
,...-.---
12,0 To M oernpIeted by _ ~ ofIIele( who .. r..
Sf'O""~ for ttw operetion of ..... Pro@'nw1\. Th. oat.4
~ be the .a:vaI Oe4R tholt hNm is IUbmjrted to the
r...,., .~.
12b To be ClOf'npIried br ttw ~ rep~'M"'lItlve
.-ho " c.rtttyi~ .. ttM pwoent of pt'l)jec1 completion
lIS ~ed tor in the ....",... 0( 'h. I,..nt or arrW'eC',,.nt.
A-110:13
'\
"
I
Office of Management and Budget Circular A-110 (7/30/76)
ATTACHMENT H.-CIRCULAR No. A-IIO
MONITORINC AND RErORTJNG rROGRAM
rERf'ORMANCE
I. This nttachment scts forth the proce-
durcs for monitoring and reporting program
performRnce of recipients.
2. Reclplents'shRll monitor the performa:lce
under grRnts and other Rgreements and,
where RpproprlRte, ensure that time sched-
ules are being met, projected work units by
time periods are being accomplished, and
other performRnce gORls are being achieved.
ThlS review shall be madc for cl\ch program,
function, or activity of each asrccment as set
forth In the. approved RppllCRtlon or award
document.
3. Reclplcnts shall submit R performance
report (tcchnlcl\l rcport) for cach Rgreement
thRt brlcfly prcsents the following InformR-
tlon for each program, function, or f\ctlvlty
Involved as prescribed by the Federal spon-
soring agency:
a. A comparison of Rctual Rccompllshments
with the goals established for the period. the
findings of the Im'estlgator, or both. H the
output of programs or projects can be reRdlly
quantified, such quantitative data should
be related to cost data for computation of
unit costs.
b. Reasons why establlshed goals were not
met.
c. Other :pertinent Information Including,
when l1pprOprlate, analysis and explanation
of cost overruns or high unit costs.
. 4.. Except as provided In a and b 'below,
and In subparagraph 3a( I), Attachment G,
recipients shall submit the, performance or
technical reports to Federr>l sponsoring l1gen-
cles and the Financial Status Reports cov-
ering the same period In the frequency estab-
lished by Attachment G of this Circular and.
where appropriate, 11 final technical or per-
formance report after completion of the
project on a date specified by the Federal
sponsoring agency. The Federal sponsoring
agency shall prescribe the frequency with
whIch the performnnce reports will be sub-
mitted "1th the rcquest for advance or reim-
bursement when that form Is used In lleu
of the FInanCial Status Report. Except as pro-
,'Ided for In paragraph 5 below, perlormance
reports shall not be required more frequently
than quarterly or less frcquently than an-
nually. Federal sponsoring agencies may
waive the requIrement [or recipients to sub-
ml I. performance reports wIth the finanCial
reports under the following cIrcumstances;
a. When the recipient Is reqUIred to sub-
mit a performance report with a continua-
tion or renewal application.
b. When the Fedcra} sponsoring agency de-
termines that ,on-site technical Inspections
and ccrtlfied completion dp.ta will be sum-
clent to cvaluatc construction projects.
C. When the Federal sponsoring agency re-
quests annual financial reports on a fiscal
year basIs but It Is necessary to get annual
prcgress reports on a calendar year basis.
5. Between the required performan~e re-
porting dates, 'events may occur th:lt have
sIgnIficant Impact upon the pro)cct or pro-
gram. In such Instances. the recIpient shall
Inform the Federal sponsoring agency as soon
as the followIng types of conditIons bccome
known:
a. Problems. delays, or ad"erse conditions
that will materially anect the ablllty to at-
tain program ob)ectlves, prevent the meet-
Ing or time schedules nnd gORls. or preclude
the attaInment of project work unIts b\' es-
tablished time pcrlods. This d!sclosure shall
be accompanIed by a statement of the nctlon
taken, or contemplated. and nnv Federal as.
slstance Deeded to resolve the'sltuatlon.
b. Favorable developmcnts or e\'ents thl\t
enable time schedules to be met sooner than
anticipated or more work units to be pro-
duced than origInally projected.
6. It any perlorrnance review conducted
b\' the reclplcnt discloses the need for change
I"; 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 agency shnll
make site \'Islts a.s [requently ILS practicable
to:
a. Review program aceompllshments and
management control systems. and
b. Provide such teehnleal assistance as
mal' be required.
8. Federal sponsoring ngencles shall submit
proposed technical and performance r~ports
to the Omce of Management and Budget for
approval In accordance wi th the report clear-
ance requirements of OMB Circular No. A-40
as re,'lsed.
ATTACHMJ:NT r.--CDlCUI.AR No. A-110
PAYMCNT RCQUIRI:MENTS
I. ThIs att.a.chment estr>bJlshes the re-
quired methods of making payments to recip-
Ients. These methods wll1 mlnlml:z.e the tIme
elapsing between the disbursement by these
recipIents and the trr>nsfer 01 funds from the
United States Treasury to these recipients
whether such disbursement occurs prior to
or subsequent to the transfer of funds.
2. Payments can be made to recIpients
through a letter-of -credIt, nn advancc by
Treasury check. or a reimbursement bl' Treas-
sury check. The following definItions apply
for the purpose of thIs attachment:
a. Lctter-o/-Credit.-A letter-of-credit Is
an Instrument certIfied by an authorl:z.ed om-
clal of a Federal sponsoring agency that au-
thorl:z.es a reelplcnt to draw funds when
needed from the Treasury, through a Fed-
era Reserve bank and the recIpient's com-
mercial bank, In accordnnce with the provi-
sions of Treasury Circular No, 1075, as re-
vIsed.
.b. Advance by Treasury check.-An ad-
"ance bv Treasury check Is a payment made
by a Trel\Sury check to a reelplen I. upon I ~
request before outlays are made by the
recipient, or through the use of predeter-
mined payment schedules.
c. Reimbursement by Treasury check.-A
reimbursement bl' Treasury check Is a Treas-
ury check paid to a recipIent upon request
for reimbursement from the recipient.
3. Except [or construction grants and
other construction agreements for which op-
tional payment 'methods are authorl:z.ed, as
descrIbed In paragraph 5, the letter-of-credit
method shall be used by Federal sponso\,lng
agencies If all of the following conditIons
exist:
a. It there Is or will be a continuIng rela-
tionship between a recipIent and a Federal
sponsoring agency for at least a 12-month
period and the total amount of advance pay-
ments expected to be recel"ed wi thin that pe-
riod from the Federal sponsoring agency Is
$250.000 or more, as prescribed bl' Treasury
Circular No. 1075. For )olnt funded projects
the Treasur)' has authorl2.ed a dollar criteria
of $\20.000.
b. it the recipIent has established or dem-
onstrated to the Federal sponsoring ngency
thc wllllngness and abIlity to maintaIn pro-
cedures that ..111 mlnlml:z.e the time elaps-
Ing between the transfer o[ funds and their
disbursement by the recipient.
c. It the reclplent.s financIal manngement
s,'stem meets the standards [or fund control
and necountnbllll)" prescrIbed In Attachment
F to thlS Circular. "Standards for Flnanclnl
Management Systems,"
-:. The method o[ advancing funds by
Trea.sun' ched: shall be used. In aceordnnce
with tho pro"lslons of Treasury Clrculnr No.
I
A-110:14
1075. when the recipIent meets all of the re-
quirements specified In paragraph 3. above,
except tho~e In subparagraph 30..
5. The reimbursement by Treasury check
method shall be the preferred method It the
recipient does not meet the requirements
speclt\ed In subparagraphs 3b and 3e, above.
At the option of the Federal sponsoring
agency, this method may also be used on any
construction agreement, or It the major por-
tion of the prog. am Is accomplished through
private market t\nanclng or Federal loans,
and the Federal assistance constitutes a
mInor portion of the program. When the re-
Imbursement method Is used, the Federal
sponsorl ng agency shall make payrnen t
wIthin thIrty days alter receipt of the bllllng,
unless the bllllng Is Improper.
G. When the letter-of-credIt procedure I.
used, the reclplcnt shall be Issued onc con-
solidated letter-of -eredl I. whenever possible
to cover anticipated cnsh needs for all grants
and other ngreements awarded by the SpOIl-
sorlng agency. Llke",'I.e, to the extent po..l-
ble. when the advance by Treasury check
method Is used. advances should be con-
solltlnted (pooled) for all grants and other
agreements made by the sponsoring agency
to that recipient. . ,
7. Unles3 otherwise required by la",', Fed-
eral sponsoring agencies shall not wI thhold
paym~nts for proper charges made by recipi-
ents at any time during t.he project or pro-
l(ram period unless (a) a recIpient has failed
to eompll' with the program ob)ectlves, award
conditions, or Federnl reporting r',qulre-
ments: or (b) the reclplcnt Is Indebted to
the United States, and collection of the In-
debtedness wll1 not ImpaIr accomplishment
of the ob)ectlves of a project or program
sponsored by the United States.
Under such conditions, the sponsoring
agenc)' mny, upon reasonable notIce, Inform
the recIpient that pn)'ments will not be m&de
[or obligations Incurred alter a specIfied dale
until the conditions nre corrected or the In-
debtedness to the Federal Government Is
Ilquldnted.
ATTACHMJ:NT J.--CDlCUI.AR No. A-lIO
REVISION or FINANCIAL rLANS
1. This attachment sets forth criteria and
procedures to be 10llowed by Federal spon-
sorIng ngencles In requIrIng recipients to re-
port 'devlatlons from financial plans and to
req uest approvals for financIal plan re~
,'Islons.
2. The financIal plan Is the financial ex-
pression o[ the project or program as ap-
proved during the application and/or' ,!ward
process. It may Include either ~e Federa\ and_
non-Federal share, or only the Federal share,
d!pendlng upon sponsoring agency requlre.,-
ments. It should be related to performance
for program evaluation purposes whenever
appropriate and required by the Federal
sponsoring agency.
3. For nonconstructlon awards, recipients
~hall Immediately request approvals from
Fcderal sponsoring agencies when there Is
re3.son to believe that within the next s!ven
days a revision w111 be necessary for the
follo",'lng reasons:
a. Changes In the scope or the ob)ectl\'e of
thc project or proJ;Tam.
b. The need for addItIonal Federal fund-
Ing.
c. The transfer of amounts budgeted fcr
Indirect costs to absorb Incre"ses Indirect
costs or vice versa, If approval Is req ulrcd
by the Federal sponsoring agency.
d. The expenditures as require npprovnl In
accordance with F'MC 73~. "Cost PTlnclnles
for Educational Institutions," For all othcr
awnrds. appro,'al requirements [or other
Items of expenditures may be Imno.ed It they
arc consIstent with those In FMC 73~. No
other requirements for specIfic Items may be
I
Office of Management and Budget Circular A-110 (7/30/76)
Imposed unless a deviation hIlS been ap-
proved by the Ornce or Man'4;ernent e.nd
Budget.
e. Reclplen ts plan to transler runds allott.ed
lor training a\1owanccs (direct payment.s \.0
trainees) to other categories a! expense.
(. None or the substantive programmatic
work under a grllnt or other agreement may
be subcontracted or translerTe<! without prior
approval 01 the Federal sponsoring agency.
This provision does not apply to the purch&5e
a! .upplles, mAterial. equipment. or gener"l
support se/"\'Ice..
5. The Fe<!ers.l sponsoring A{;ency may
IlIso. at It.. option. restrict trs.nslers 01 lunds
among direct cost cMcgorlcs lor awn.rds In
....hlch the Federal shAre exceeds "100.000
when t.he cumuln..t.1vc R.IDount or such trl\n6-
lers exceeds or Is expected to exceed five
perCPDt or Ule totlll budget &5 Io..,t I'pproved
by the sponsorlng agency. The same criteria
shall s.pply to the cumul..tlve amount 01
translers among prog/"tlodl16. !unctlons. and
aotlvltles wben budgeted separately lor an
award, ex.cept. thnt the Federal sponsoring
Il{;ency shllll permH no trn.nsler thnt would
cause any Federo.] approprla.t1on. or pllrt
thereof, to be used lor pUJ1>OSC6 other than
th05e Intended.
6. All other changes to nonconstructlon
budgets. except lor the changes described
In paragraph 8. belo...., do not require ap-
proval. This Includes the use o! recipient
funds In lurtherance or program objectives
over and ..bove the recipient mlnlmum shs.re
Include<! In the approved budget.
7. For construction awards. recipients
shall request prior ..pprovals promptly from
Federal sponsoring '4;enclcs lor budget re-
visions wherever:
.:. The revision resul ts from changes In
the scope or the objective a! the project or
program, a..nd
b. The re,'lslon Increases the budget
amounts 01 Federal funds needed to com-
plete the project.
8. When .. Feder&! sponsoring agen:::y
makes ..n ..ward thnt provides support,lor
both construction and nonconstructlon work.
the Federal sponsoring agency may require
the recipient to request prior approval lrom
the Feder&! sponsoring Il{;ency before m:lk Ing
any fund or budget tr....nsfers between tlle
two types 01 ....ork suppo.."lrte<l.
9. For both construction and nonconstruc-
tlon awards, Federal sponsoring agencies
shall require recipients to notUy the Fed-
erAl sponsoring agency promptly ,,'henever
the amount 01 Fcderal .authorlzcd lunds Is
expeC'l.ed to exceed the needs 01 the recipient
by more than 1.5.000 or five percent of the
Federal award. whichever Is greater. This
notlflca.tlon wlll not be requlred U ..ppllca-
tlons lor addltloDAI !uncUng llJ'e submJtte:l
lor contlnulng grants or contra.cts.
10. When requesMng ..ppro,'al lor budget
revisions. recipients shall use the budgot
forms tha.t were used In the application
unless a letter request ...'ill suffice.
II. Within 30 calendar days from the date
01 receipt of the request Cor budget re~l-
slons. Federal sponsoring agencies shall re-
vie.... the request and notlly the recipient
whether the budget revisions have been ap-
proved. II the revision Is stlll under con-
sideration at the end 01 30 ca.lend!lr days.
the Fedcral sponsoring agency shall lnlorm
the recipient In wrltinr of the date ....hen Ule
rec1plent may expect the decL.lon.
ATTACHM.ENT K.--ClRcul.Aa No. A-I JO
CL.OSEOUT PROCEDU1U:S
1. This attachment. prescribes untrorm
closeout procedures lor Federal grants and
other agreements wIth recipients
2. The lollowlng definl tlons shail apply lor
the purpose 01 thL. attachment:
a. Clo.<coul.-The CI06COut of a grant
..greement 1.8 the proceRS by whlcb .. Federal
sponsoring agency detennlnes th&t ..II ap-
plicable admJnlst.To.tlve a.ctJons and all re-
qulrcd work a! the agreement have been
compleLed by the recipient ..nd the Pcderal
sponsoring '4;ency.
b. Date 01 complclicm.-The date 01 com-
pleLlon Is the dale on which &!I work under
gnwts and other agreements la completed or
the dale on Lbe award document. or any
'supplement or &IDendment thereto. on which
pe<!er&! sponsorship ends.
c. Duallowed co.l..-Dlsnllowed COGts are
those charges to .. gra.nt or other Rf,"reement
that the Pederal spon.'.or!ng agency or It..
reprcscnlALlve determines to be unallow-
able. In accordance with tbe appllc..ble Fed-
ers.1 cost prinCiples or other condltlons con-
tained In tho agreements.
3. All Federal sponsoring A{;enclc.' shall es-
tabllsb CI06Cout procedures that Include the
followIng requirements:
a. Upon request. the Pederal sponsoring
al;ency shall mllke prompt payments to a
recipient lor allown.ble reimbursable costs
under the grBnt or other agre<:ment bclng
close<! au t.
b. The recipIent shall lmmedlll~ly refund
any balance 01 unobllgate<! (unencumbered)
cash that the Federal sponsoring ..gency has
ndv..nced or paid ..nd that Is not authorized
to be retained by the recipIent for use In
other gra.nt.s or other agTe<:ments.
. c. The Federal sponsoring ..gency shall ob-
taln from the reCipIent within 90 calendar
days ..rter the d..te of completion of the
agreement all financIAl. perlormance. and
other reports requlre<! as the condition 01 the
e.greement. The ..geney may grant extensions
....hen requested by the recipient.
d. Wben authorized by the grant or other
agreement. the Federa.l sponsoring agency
sh..ll IDAke .. settlement lor ..ny upward or
downw..rd adjustments to the Federal share
o! coots &Iter these reports lLTe received.
e. The reCipient shallllocount for any prop-
erty &CqUlred with" Feder..1 lunds. or rc-
celved lrom the Government In accordance
with the provisions a! Att&Chmcnt N to this
Circular. Property Ma.nagement Sl.lLndlLTds.
f. In the event a final a.udlt has not been
per10rmed priOr to the closeout o! the grant
or other e.greement. the Feder&! sponsoring
"'gency shall retain the right to recover an
appropriate amount ..rter fully considering
the recommendatlons on disallowed C06ts re-
sulting from the linal audIt.
(. Suspension and termlnatlon proce<!ures
are cont..alned In Attachment L \.0 this CIr-
cul..r,
ATTACH"'!:NT L.-CIllCtnJoIt No. A-I10
SUSPENSION Apro TERNlNATIOtl PBOCEDt11lES
1. This ..ttachment prescribes unUorm
suspension and termlnatlon procedure:s lor
Federal gran ts and other agreemen ts wi th
re:::lplents.
2. The lollowlng definitions shall ..pply
ler the purpcse 01 this attachment:
a. Tcrminaticm.-The termination or a
grant or other agreement means the can-
cellatlon a! Federal spOD..-.orshlp. in whole or
in part. under an agreement at any time
prior to the date 01 completion.
b. Suspc=ion.-The suspension of a grant
or other agreement Is a.n actlon by a Federnl
sponsoring A{;ency that temporarUy sus-
pends Federal spons:lrshlp under the grant
or other agreel"ent. pending corrective nc-
tlon by the recipient or pending a decision
\.0 terminate the grant or other agreement
by the Federal sponsoring agency.
;3. All Federal sponsoring ..gencles shnll
provide procedures to be lollowed when a
recipient h&5 laUed to comply w:I th the terms
I
A-110:15
of the grant or other agreement and condi-
tions or st..andards. When thllt occurs. the
Federa) sponsoring ..gene)' mil)', on rea.soll-
able notice to the recipient, suspend the
grant or other ..greement, and wlthhol'd lur-
ther payments. prohibit the recipient lrom
Incurring additional obllgatlons 01 funds,
pending corrective action by the recipient, or
a decision to termination In ..ccorda..nce with
Jlar..graph 4. The Federal sponsoring ..geney
shall allow all necessary and .proper costs
that tJle recipient could not reasonablv avoid
during the period 01 suspension prO"ld~d that
they meet the provisions o! the applicable
Federal cost principles.
4. Federal sponsoring agencies shall pro-
vide for the systematic settlement or ter-
minated grants or other agreements Includ-
Ing the following:
a. Terminalion lor causc.-The Federal
spoDsorlng agency mal' reserve the right to
terminate any grant or other agreement In
whole or In part at any time bel ore the date
01 completion, whenever It IS determined that
the recipient hns !alled to comply with the
conditions o! the agreement. The Federal
sponsoring agency shall promptly notU)' the
recipient In writing 01 the determination and
the rensons lor the termination, together
....Ith the effective date. Pavments made to
recipients or recoveries by the Federal spon-
sorlnr; agencies under grants or other agree-
ments terminated lor cause "hall be In ac-
cordance With the legnl rights and liabilities
of the parties.
b. Tcrmi=ticm lor ccmvcnie71cc.-The Fed-
eral sponsoring agency or reclplen t mal' ter-
minate grants and other ar;reements In whole
or In part when both pnrtles agree that the
continuation of the project would not pro-
duce beneficlnl results commensurate with
the further expenditure of funds. The two
partles shall agree upon the termination con-
ditions, Including the effective date and. in
the case o! partlnl terminations, the portion
to be terminated, The recipient shall not
Incur ne.... obligations lor the terminated por.
tlon alter the elfectl,'e date. and shall can-
cel as many outstanding obligations as POE-
sible. The Federal sponsoring agency shall
allow full credit to the reclplcnt lor the
Federal sh..re a! the noncancellable obliga-
tions. properl)' Incurred by the reCipient prior
to termln..Uon.
ATTACHM.l:NT M.-CIRCULAa No. A-liD
STANDARD FORM FOR APPLYINC FOR.
TJ:DE1lAL ASSISTANCE
1. This atta.chment f'romulg"'tes a stand-
a.rd lorm (SF (24) to be use<! by public Rnd
.prlvate Institutions 01 higher education.
public and private hospitals and other quasi.
publiC and private nonproftt organizations as
a lace sheet lor appllcatlons when :>pplylng
lor Federal grants under pror;rams covered
by Part I. Attachment A. OMB Crlcular No.
A-95. In addition. agencies are particularly
encouraged to etxend the use of SF 424 to
common programs ....ith State and local gov-
ernments where this form Is now required by
FMC 74--7.
2. The SF 424 -may also be uscd. on an op-
tional bnsls. to lulftll the requIrements or
OMB Circular A-95 lor a notification 01 ill-
tent. from applicant to clearinghouseS. th:>t
Fedcral assistance "'ill be applied lor. Lcc:>l
or State clearinghouse procedures wlll go,'ern
the use 01 the form for this purpose.
3. The standard lorm will also be used by
Federal agencies to report to the clearing-
houses on major actIons taken on ""pllca-
tlons reviewed by clearinghouses In n.ccl)rd-
ance ....Ith OMB Circular A-95, and to notlly
States of grants-In-aid awarded In accord-
ance ...'Ith Treasury Circular 1082.
I
I
Office of Management and Budget Circular A-110 (7/30/76)
A-110:16
o...e App"",.1 No. 7'J-ROrll
FEDERAL ASSISTANCE L I'rPPlI. .. II\IiIBER 3. ITA"
A1'?UC....
CANT'S nON
1. TYPE 0 P REAPPlI CATION APPlI- b. o...1t I 0~Kll-
or eAT lOf( r_ ...-... .... P'ltll
ACTION 0 Jd' I'lICA TIOI( I~
(M_."" 0 NOTJFICATIOI'l OF INTUCT (t)pl.) 1..,..0..
,....,.n..u
'_l 0 RU'ORT Of rtDElW. "CHON lito...
.. 11\1i18ER
.. OArr
r..r ~lk day
A.SSICHEO 19
4. LEGAL APPLICANT/RECIPIENT
S. P'~OfIVoL I':MPLOyr;R 10000TIPlCATI0N NO.
.. ~pli(..lnl H..... :
.. Orf.niu.tio~ U..1l :
t. SI,..I/P.O. 8<lI. :
d. City :
I, S lrit :
.. HUWBER
b. TITH
I I I- I I I I
L &000017 :
I. ZIP C<>do:
r..
PRO.
GRAM
(Fro",
,.0<1...01
CDloalo..,
k. e.nl..! p....,.. (ND_
01 ,...,J...... 1'1..) :
7. TITLE AND DESCRlnlON Of APPLICANra PROJlCT
..
~
E
;:
~
~
~
~
i
&. TYPE or
J-St.h
6-1"ltAllta
C-Subslll.
Oiririd
~n.17
E-Clly
I-Wool Olrtrtd
~~I~ "'rpow
""'P~IOAN'f fRECI F'I ENT
~",uollY ^<II"" ~
..r t l~~i~~f l~~:.ea'ion" tNtlluliOft
/'.-Ct'. (S,..rl(v):
s,.,t.rr .~..,...,..,:otc HUn" 0
.. TYPE Of Al\.6ISTANCE
......=a..,lc 'I"N.l D-hnurNll..
B-luPI'h...,.ut tnt'!( '-OU.er
c-l... 0
6"tn G"~ IT]
"nol. 1.,.....(,)
10. AREA or PROJecT IMPAC'f (1'1...... 01 .I>(u, .-..-.
5...... .....)
11. EST/Lv,reg M\J1I\..
BER 01' M!1UON&
'SUI VITI N G
12. TYPE Of Af'Pi..ICATlON
A-...... C-A...id~ [-A.w,M4ift\.ltlon
a...-Il.M......l ~.lh"'M,t1H.
Eft''''' oppropriat, 1.U..'T 0
.00
.00
.. APPUCA.HT
~ PItOste'T
15. TYPE Of CHANGE (T"" He ... U,)
~Inc,,"," Dolh" ~1h4r (Spec/fy):
S-Oecna... D.Jb"
C-.",,...... o,u,..tttAI
O-oect..... o.,.Uoa
[_CualbtiCMI
11. P~ED PUNDINS
.. FroER"l. S
b. Id'PLlCA"T I
1-4. CONCIU:SS1ONAL D1STRlCTI 01':
c. HATE .00 16. PROJECT START 111. I"n<lJECT
DATt Fur........u. 0..7 DURATION
d. lOCA!. .00 19 1d ....tlu
., OTHE~ .00 1&. tnt_TED DAn TO 1_r """"^ dov
BE SU&MITTED TO
I, TOTAl. S .00 fEDERAL JIoGENCY ~ 19
zo. fEDEIVoL AGENCY TO RECEIVE REQUEST lIrf_. cu.. a........ %11' ...o.J
lfftt.n appro... i
".,...;ok l4U.-r(.)
[l
19. EXISTING PEDERAL 10ENTIFICATION NUMBER
21. REIolAAKS ADDED
o v_ 0 No
%2..
I. 11 'h. tint. eo{ wry knowledi' ,"d ..I..t',
d.h il'. Uli, JI'f"M4lpHutiCN'l/ap.pliutlOll. .,.
k-UI aII'd couKl, >>t. doeumeftt hu ~
ou,", .utkorized b)' t,u l~iPlt bo<tr e(
tt,. IrPliunt and til. lPOiic.a1l't will """""
"'th ltu ,t;.c+t.c ...,..U1IS lot lH assiM-.
In.. K 'PPI'OY.d.
~. H' ,"w4nC by OM8 CII't:ula( A-9S ~n .pr4lt.1tIOA -.. ~In~. pun<<J.~t \0 il'l-
.tructfOA. tn..,..In., to Ippropru" ,1..r1ft,hcHI..." ."d ,II ,,,po"US IN .rtseJuC::
No r..
eJ>C"'U'
R. _fW'7U4
.t&...e~
~
~
E
11
~
c
..
"
THE
APPLI CANT
CERT\'f'IES
THAT ~
III
C2I
(3)
23. I .. TYrLO tv.lIE AIIO TITU
CERTIFYINC1
REPRE.
SENTATIVE
~. IllltU.T\JRE
0 0
8 0
, 0
L OATE sla~o
reor ........v. doy'
19 1
26. ORClANIZATIOJ'ol.A.L UNIT
17. ADMINISTAATlV[ OffICE
IZS- APPLICA. l'__ -- 0167
TION
RECENEO 19
2&.. fEDERAL APPLICATION
10ENTlflCATION
I~'
AQ U1CY ~ME
~
~ :IS. ADDRESS
~
~ 31. ACTION TAKtN
i 0 .. AWAAOEO
.. 0 ~. J;E)lCTEO
Q
J 0 c. IlmJ1lHliO POR
""'EHDt.lt:llT
~ 0 (. OEfl!RJlro
Ei
'" 0 .. WI Tll 0 RAI'ffl
"
3a..
fEDERAL ACEH':Y
A-95 ACnON
JL ru N Orn<:
.. rfDtlW. .00
\, 1J'N.llWif .00
t. n"'H .00
(. lC('.A~ .00
.. OftlU. .00
l. TO"! Al. .00
J"_ _.... oI6r
\ ao:-f[DERAL OF-ANT
IOEl'iTlflCA TION
J..4. )'-.or ~tA U)'
lIT ARTlNG
DATE 19
36.. Y..r ",,0'ft..Lk "II
tNOINe
011 TE 19
37. REMARKS ADDED
n. M:TION DATE ~ 19
~. COHTM:T fOil ADDITIONAL ""'OR"'A.
tlOt< (X...... ..... teoj,~ ..w~Io...)
:i'd.lf~~~:n:I:;.";:::; :.~cl:::;:b~~ ~~':i:~iO~~~rc::- ~t
lit Iwt.t ...... w .. ....... .&Gt.
o Yu ONo
\. rEOERA.l. AGENCY ~9' Of"fICIA.l.
."'"G-nUl .,.,d ~p..lw>tw" "-0.)
"-T/~I!""'l"""~ ~~u J.,J PA"'" , ""_-''''1
"
,
_I
Office of Management and Budget Circular A-110 (7/30/76)
A-110:17
SECTION IV-REMAAKS (PleGJIe referenu tM pr~r lum "umbN" from SutUnu 1,11 &f" III, if appli.ca.bLe)
4
,
STANDARD FORM 424 PAGE 2 (10-75)
I
I
fice of Management and Budget Circular A-110 (7/30/76)
A-110:18
GE~ERAL INSTRUcnOHS
This is a multi.purpose standard form. First, it will be used by applicants as a required facesheet for pre-
applications and applications submitted in accordance with Federal Management Circular 74-7. Second, it will
be used by Federal agencies to report to Clearinghouses on major actions taken on applications reviewed by
clearinghouses in accordance with OMS Circular A-95. Third, it will be used by Federal agencies to notify
States of grants-in.aid awarded in accordance with Treasury Circular 1082. Fourth, it may be used, on an
optional basis, as a notificalion of intent from applicants to clearinghouses. as an early initial notice that Federal
assistance is to be applied for (clearinghouse procedures will govern).
^ppu~rr PROCED~nES FOR SECTION
^pplicant will complete ell items in Section I. If an Item is not applicable, write '"N^". If additional space is needed, insert
an asterisk ....., and use the remarks 5eCl.ion on the back of the form. N1 explanation follows for 0bCh item:
Item
1. MarK appropriate box. Pre.appllaltiQn Ilnd applica-
tion guidllnce is in FMC 74-7 and Federal agency
program instructioll$. NotlflCl'ltion of intent RUId-
llnCe is in Circular A--95 procedures from clear.
inghouse. Applicant will not use "Report of Federal
Action" box.
211. Appll~nt's own control number, If deslmd_
2b. Ollte Section I Is prepared.
311. Number DS51gned by State c1el1ringhouse. 0( If dole-
gated by SllIte, by areawide clearinghouse. All nil-
QUests to Federel egencies must c:orrtDin this identi.
fier if the pl"Ogmm is covered by Cincular 1r-95 I1nd
required by applicable. State/areawide clearing-
house proce<lu~. If in doubt, consult your clear-
inghouse.
3b. Dele Ilppli~nt notJfied of clC(lrinll'house ld:tnt:ifiGr.
4&-4h. Leglll name of eppllcent/redplent, nllme of primary
ol"llllniz.otional unit ~tJich will undcrtzJk8 the assist.
ance Dctivity, comp:=te address of epplicant, e'!<l
neme and tolephone number 01 pcrson who can pr0-
vide further information ebout tnis request.
5. Employer identification number of eppli~nt liS as-
signed by Intornlll RlMlnue ServIce.
Ga. Use Catzll08 of Federnl Domestic Msistance num-
ber assigned to prt>(STllm under which aS3istance is
requ~ed. If more tnan one program (e.&-, )oint-
funding) wme '"multiple" and explain in reffillro.
If unknawn. cite Public Lnw or U.S. ~.
6b. Program tltMl from Fe<lonIl Cl:tBlog. Abbrevlllte If
n ecessa ry .
7. Bricf title and appropriete de:scriptlon of project.
For notifiClltion of intent. continue in rem!lrks sec.
tion if n~Sllry to convey propcr description.
8. Mostly aelf-cxplanatory. "City" includes tawn, town.
ship or other municipality.
9. Check the type(s) of assistance requested. The
definitions of the terms a~:
A. 8llslc Grnnt. An original request for Fedcml
funds. this would not include any contribution
provided under II supplement:el grant.
B. Supplemcnt:el Grant. ^ request to increose a
basic grant in certain ~ses when! the eligible
applicant cannot supply the required mlltthin8
share of the bllsic Federal program (e.g., grants
Ilwarded by the I\ppalachilln f'lcgiolllll Commis.
sion to provide the Zlpplicant II matthing Shll~).
C. Loan. Self explllnDtory.
Item
10.
11.
12.
D. IMOrance. Setf explanl1bJry.
E. Other. Explain on rern:arks p8ge.
Govemmerral. unit whenl ltignificllnt and mellning.
ful impact could be observed. LiIOt only Iel"llest unit
0( units affected, such as Sbrte. county, or city. If
entire unit aft1:lcttK:\, list It rather than 5Ubunlts.
Estimated number of persons directly benefiting
from project..
Use appropriate code letter. Definitions are:
A. New. A submittal for the first time for e new
protoct.
13.
B. RenewaL N1 extension for en eddttional funding/
budget pcriod for a project h!lving 00 projected
completion date. but for which Federal support
must be rencrwe<l eoch year.
C. Revision. ^ modification to project neture or
SCOptl which mil')' result i" funding chZlnge (in.
crease 0( Oecreese).
D. Continul!tion. N1 extension for an eddltlonlll
funding/budget pcriod for a pro~ the agency
initially agreed bJ fund for a definite number of
ycers.
E. l.ugmcntat:ion. ^ requirement for edditional
funds for a project previously awurde<l funds in
the SlIme funding/budget pcriod. Project nature
end scope unchanged-
knount requested or to be contributed during ,the
first funding/budget pcriod by eech tontrib\r.br.
Velue of in-kind contributions will be Inchwed. If
the action is a change in dollar amount of en exist.
ing grent (II revision or augmentation), indicate
only the emount of the chllnge. FO( decreases en.
close the amount in parentheses. If both basic and
5Upplem"ent:e1 amounts are included, breakout in
remarks_ For multiple proer<lm funding, use totals
and show progrnm brenkouts in remarks. Item defi.
nitions: 13a. amount requested:tram Federal Gov.
ernment; 13b, amount appliCllnt will contribute;
13c, amount from State, if applicDnt is not Il State;
IJd, amount from local government. if applicant is
not a local government; 13e, amount from Ilny other
sounces, explain in ~mar1ts.
~ explaoatory_
The distnet(s) where most of actual worK will be
accomplished. If city.wide or State-wide, covering
severn I distric:U, write ..city-w>de" or '"State-wide."
Complete only for revisions [Item 12c), or augmen-
t.zrtions (item 12 e).
148.
l4b.
15.
STf\NMRD FORM 424 PAGE 3 (10-75)
,
I
,
. ,
o
I
.I
Office of Management and Budget Circular A-110 (7/30/76)
A-110:19
Item
16.
17.
18.
Approximate date project expected to bepin (usulllly
IIs!>OCiat~ with estimated date of llvailabllity of
funding).
Estimated number of months to complete project
lifter Fedoral funds are IIvailable.
Estimoted date preapplic-..etion/eppllcation will be
submitted to Federal agency If this project requires
clearinghouse review. If rllview not required, this
date would usually be wme as date in Item 2b.
Item
19.
Existing Fedel1ll identification number If this is not
II new request llnd directly relates to 8 previous
Fedel1llection. Otherwise write "NA".
Indic8'le Fedel1ll egency to which thiS request is
addressed. Street address not required. but do use
ZIP.
20.
21.
Check appropriate tx:x as to whether Section IV of
fonn contains rema/"lU end/or additional remarks
ere attachod.
APPLICANT PROCEDURES FOR SECTION \I
Applicants will II I ways complete Items 2311, 23b, and 23c. If clearinghouse review Is required, Item 22b must be fully com.
pleted. An explanation follows for each item:
Ilem
22b.
z.3.a .
Ust cleorlnghousM to which submItted end shoW
In IIppropriote bloclu the s18tus 01 their responses.
For more then three clearinghouses, continue In
remarlu section. All written commenu aubmltted
by or through clellringhousell must bo attached.
Nllme ond title 01 lIuthorized rep~n18tive of leglll
applicant.
Item
23b.
Solf explanlltory.
23c.
Self explanatory.
Nole:
Applicant completes only Sections I and 11. Section
III is completed by Fedoral agencies.
FEDERAL AGENCY PROCEDURES FOR SECTION III
Item
24.
Executive department or Independent agency hllving
program lldmlnistra~ion responsibility.
Self explanatory.
Primary organizational unit below department level
having direct progl1lm management ~ponslbillty.
OOic:o directly monitoring the program.
Uu to identify non.award actions where Federal
gTllnt identifier in item 30 Is not applicable or will
not suffice.
Complete add~ of administering office shown in
Itom 26.
Use to identify award actions where dlnerent from
Fedel1ll application identifier In item 28.
Self explanetory. Use remarlu secrion to emplify
where appropriate.
Amount to be contributed during the first funding!
budgct period by each contributor. Value of in.kind
contributions will be included. If the action is II
change in dollar amount of lln existing gl1lnt (a revi.
sion or augmentation), indicate only the amount of
change. For decreases, enclose the llmount in p<>'
rentheses. If both basic and supplemental amounts
are included, breakC'ut in remarlu. For multip~ pro.
llrDm funding. use totllls one show program break.
outs in remarks. Item de;,nitions: 320, amount
awarded by Federal Government; 32b, amount ap'
plicant will contribute; 32c. amount from State, if
applicant is not a State; 32d. amount from local
government jl applicant is not a local government;
32e, amount from any othlli" ~ources. explain in
remarks.
Ollte action was taken on this /"Cquest.
Dote funds will become available.
If applicant-supplied infonnation in Sections I and II needs no updllting or adjustment to flt the finlll Federal llctlon, the
Federal agency will complete Section III only. An explanlltiol1. for each Item loll~:
25.
26.
27.
28.
29.
30.
31.
32.
33.
34.
Item
35.
Name and telephone no. of agency person who can
provide more informlltion resarding thl~ a ssis18 nee.
Date after which funds will no longer be available.
Check llpproprillte box es to whllther Section IV of
lorm contains Federal remarks and/or attachment
of additional remllrks.
For use with A-95 action notices only. Name and
telephone 01 person who can llssure that appropri-
ate A-95 action hilS been taken--If same as person
shown in Item 35, write "same". If not applicable,
write "NA".
36.
37.
38.
Federal Agency Procedures-special considerations
A. TrellsUry Circular 1082 compliance. Fe4eral agency will
assure proper completion 01 Sections Illnd III. If Sectioil I
is beins completed by Federal agency. all applicable items
must be filled in. Addresses of State Information Recep.
tlon Agencies (SCIRA's) lire provided by Trc.asury Depart.
ment to each agency. ThIs fonn replllces SF 240, which
will no longer be used.
B. OMB Circulu A-95 complience. Federlll llgency will as.
sure proper completion of Sections I~ II, llnd III. This form
is required for notifying all reviewing clearinghouses of
ma;or actions on all programs reviewed under A-95.
Addresses of State and areawide clearinghouses art pro.
vided by OMS to each agency. Substantive differences
between applicant's reQLfest and/or clearinghouse recom.
mendations. llnd the project as finally awarded will be
explained in A-95 notifications to cle:Hinghouses.
C. Special nole. In most, but not all St~tes, the 1-.-95 Stat'3
clearinghouse llnd the (TC 1032' SCIRA are the same
office. In such cases. the A-95 8wnd notice to the Stal-e
clearinghouse will fulfill the TC 1082 aw<lrd notice reo
Quirement to the State SCIRA. Duplicate notification
should be 8voided.
STANDARD FORM 424 PAGE 4 (10-75)
'-
I
Office of Management and Budget Circular A-110 (7/30/76)
. ATTACHMENT N.--cIRCULAR No. A-1I0
PRorER,TY MANAGEMENT STANOARDS
1. This attachmcnt prcscribes uniform
standards govcrnlng management 01 prop-
crt)' furnished by the Fedcral Governmcnt or
whosc cost was chlU'ged 1.0 a project sup-
port.cd by a Fedcral gra.nt or other .arreement.
Fcdcral sponsoring agenclCS shall requlrc re-
Cipient.' 1.0 observe these sLandards under
grants and other agreemcnts and shall not
Impose additional requlrcmcnts unless spe-
cHlcall)' required by Fedcral law. The recipi-
ent OlDy use Its own property management
standards and procedures proVldcd It observes
the provisions 01 this attachment. This nt-
tachment also applies 1.0 subreclplenLs a.s
referred 1.0 In parngrnph 5 of the ba.slc clr-
culnr.
2. The following definltlons npply for the
purpose of this attachment:
... Real property._,enl property mcans
l..nd, Including land Improvement.s, struc-
tures and appurtenlUlces thereto, but ex-
cludIng movl\ble ml\chlner)' and equipment.
b. Personal pr01Jerty.-Pe~Dal property
of any kind except real property. It may be
tnnglble-ha,'lng physical exlsLencc, or IDLlln-
glble-havlng no physical existence, such I\S
patents, Inventions and copyrights.
c. Nonexpendable pcrsonal property.-NOD-
expendl\ble persoDal property means tangIble
personal propcrty ha,'lng a useful IHe of
more than one year and an acqulsltlOD cost
of $300 or more per unit exempt that reclp-
leDl.5 subject to Cost Accounting Standards
Board regulations may use the CASB stand-
e.rd of 1-500 per unit and useful We of two
years. A reCipient may use Its own defiDltlon
of nonexpendable personal property pro"lded
that the definition would at lea.st Include all
tangIble personal property as defined nbove.
d. Expendable personal property.-Expend-
able personal property refers 1.0 all tnnglble
personal propert}. other than nonexpendahle
property.
e. Excess property.-Excess property means
property under the control of aDY Feder..l
agency th..t, as determined hy the head
thereof, Is no longer required for ILs needs
or the dIscharge o! Its re.sponslbllltles.
!. Aequuition cost of purchascd none>:-
pendable persO'Tlal property.-AcqulsltloD cost
o! an Item of purch....ed none>:pendable per-
&onal propert}' mel\ns the net Invoice uDlt
price of the property IncludlDg the cost of
modIfications. attachments, accessories or
auxUlary npplU"atus neccssary to make' the
property usable tor thc purpose for which It
....ns acquired. Other charges such n.s the cost
of Installation, trnnsportatlon, taxes. duty
or prot.cctlve In-transit Insurance, shall be
Included.or excluded from the unit acquIsi-
tion cost In accordance wIth the reclpleDt's
regular accounting practices.
g. Exempt properfy.-Exempt property
means tangIble personal property acquIred In
whole or In 'part With Federnl funds, and
title to which Ls vested In the recipient with-
out lurther obligation to the Fe<:leral Govcrn-
ment except as provIded In subparagraph 6a
below. Such uncondItIonal vesting o! tille
wUI be p\lrSuBnt to any Federal legislation
thnt pro"Ides the Federal sponsorlnE; agency
wIth n.dequate authority.
3. Real pTopcrry.-Each Fcder"l spor-sorlng
agency shnll prescrIbe rcqulremenLs tor re-
cipIents concernln!! the use nnd disposition
01 real property acquired parLly or. wholly
unoc:- ~rnnt.s or other ngrccnlcnts. Un)cs..c:;
otherwLse pro\'lded by statut.c, such re'lulrc-
menlS. a.s " mlnimul11. shall NIJ1.nl:1 the
:0110"'lng:
B. Title 1.0 real propert\. shall vest In the
recipient suhject to the condition that the
recipient shall use thc real properLy lor the
l\uthorl.zed purpose of the proJecL,'ns long as
It 15 needed.
b. The recipient shall obtain ..pproval by
the :f'ederal 5ponsorlng 8{:ency for the use of
real property ID other projects when the re-
cipient determines that Ll1e properLy Is no
longer needed for the purpose of the orlgl,,,,1
project. Use In other proJecLs shall be limited
to th,,,,,e under other ledeTluly sponsored proJ-
ects (I.e., grant.' or other lLgreemen15) or pro-
J;rnms thnt have purposes eonslst.cnt with
those nu thorl7.cd for support by the J-'cdersl
sponsorIng "fency.
C. When the real property 15 no lonl:er
needed n.s provided In n "nd b ..bove, the
recIpient shan request dll<p051t1on In5truc-
tlo"-' from the Federal 5pon50rlnc nr,ency or
Its luccessor Federal 5pon5"rlnr, ILI:ency. The
Federnl sponsorlnl: Bl:ency slll.1I observe the
followlns rules In the disposition Inl<truc-
tlons:
(I) The recipIent mBY be permitted 1.0 re-
lain title alt.cr It eompensntcs the Federal
Government In I\n ..mount computed by ap-
plying the Federal perceDtar,e of plU"tlclpa-
tlon In the cost of lhe original project 1.0 the
fair market value of the property.
(2) The recipient may be directed 1.0 nell
the property under guidelines provided by
the Federal sponsorIng asency ..nd pay the
Fe:leral GovernmeDt an amount computed
by applying the Federal percentnge of par-
tlclpatlon In the cost of the orlgln..1 project
1.0 the proceeds from sale (aft.cr deducting
actual and reasonable selllns "Dd flx-up eX-
penses, If any, from the snJes proceedS).
When the recipient Is authorll'.cd or required
to sell the property, proper 6ll.Ies procedures
shall be established that provIde for competi-
tion 1.0 the extent practlcl\ble "Dd result In
the highest possible return.
(3) The recipient may be directed to trans-
fer title 1.0 the property 1.0 the Federl\l Gov-
ernmeDt provIded that ID such cnscs the
recipient shall be entitled 1.0 compensation
C:lmputed by applylns the reCipient's per-
centage of participation ID the cost of t.he
program or project to the curreDt fair market
value of the property.
4. Fcd.eTaly-owned n.onczpcndabl<: p"1'Oo=1
property.-Tltle 1.0 federally-owDed property
remains vested ID the Federal Government.
Recipients shall suhmlt ..nnul\lI}' aD IDveD-
tory listing of federally-owned property In
their cusl.ody 1.0 the Federal sponsoring
I\geDcy. Upon completion of tbe l\gTeemeDt
or when the property 15 no lODger needed.
the recipIent shall report the property to
thc Federal" sponsoring asency tor further
agency utllI7.ntlon.
If the Federal sponsorlns ageDcy has no
further need lor the property, It shall be
declared excess and reported 1.0 the General
Sen'lces AdmlnlstrtloD. Approprlat.c dlspo~l-
tlon Instructions ....111 be Issued to the re-
cipient after completloD of the Federal
..sency review.
5. Exempt property.-When statul.ory aU-
thority exists. (e.s., P.L. 65-934. 42 U.s.C.
1692) title to nonexpendable personal prop-
crty acquired ",'Ith project funds. shall be
'<"ested In the recipient UPOD acquisition un-
less It Is det.crmlned that 1.0 do SO Is not In
lurtherance of the objecLlves of the Fedcrnl
sponsoring acenc)'. Whcn title Is vcst.c:1 In
the recipient. the recipient shall have no
other obligation or nccountahlllty 1.0 the
Feder..l Government for Its use or dl5posl-
tlon except ns provided In 6n bclow.
fi. Othcr noncIpendablc propcrty.-When
other nonexpendable tanr.lhle personal prop-
ert)' Is ncqulTe<:l by a recipient wIth project
lund~. title shall not be tnken by the Fe:l-
cr,'\l CrO\"C'rnnlC'nt but sht'\lI f't'st. In th!' rt'-
clplen~ subject to the lollowln~ conditIons:
a. Right to tTanslcT tit/C.-For Itcms of
nonexpendnble personal properly h""lng ..
unit ncquisltlon C05t of ~1.000 or more, the
Fcdcrnl sponsoring ngcncy mRY rc~crvc the
riCh t 1.0 trnnster the tl tic r..o the Federal
I
A-110:20
Government or to a third party JlRJlH'd by
the "'cdcrfLl Government.. when t;uch third
parLy Is otherwise eliglhle under exl5Ling
su.lutes. Such reservation shnll be subject LO
the lollowlng standards:
(I) The property shall be appropriately
l<lenlllie:1 In the gr..nt or other agreement
or other....lse made known to the recIpient
In wrIting.
(2) The Federal 8ponsorlng ngency ~hnll
Is.sue disposition I,,-,tructlons withIn 120 cnl-
eudar dnys nrt.cr the end of the Federal sup-
port of the project for which It was ncqulred.
II lhe Federal sponsoring agency fl\lls to Is-suc
dlsp""lllon Instructions within the 120 cnl-
emlnr day period. the recipient shnll npply
lhe sLnndl\rds of subpnraG'mphs fib nnd 6C
ns npproprlate.
. (:I) When the Federal sponsorinG' Bgency
exercises Its right to take title, the personal
property shall be subject to the provisions
lor lederally-owned nonexpendahle properly
discus-sed In pl\ragraph 4, above.
(4) WheD title Is transferred either 1.0 the
F'e<leral Oovcnunent or 1.0 a third pRTLy.lhe
provisions of nub paragraph <lc(2) (b) should
be followed.
b. U~c 01 other tanqible nonexpendable
property lor whi.ch the recipient hlL! title.
(1) The recipient shall \U'oe the property
In the project or program. for whlcb It was
acquired ILS'long ns needed, whether or not
the project or prog'ram continues 1.0 be sup-
r><>rted by Fe<:ler..1 funds. Vlhen no longer
needed for the orlG'lnal proJect or progmm,
the reclpleDt shall use the property In con-
nection with Its other federnlly I;ponsored
n.cllvltles, ID the following order of prlorlt}.:
(..) Activities, ID the following order of
priority:
(b) Activities sponsored by other Federal
"Gencles.
(2) Shared "-",,.-Durlng the time that
nonexempt nonexpendable persOnal proper-
t). IS held for use on the project or program
for which It WILS acquired. the reclpleDt
sbnll make It avallahle for use on other proJ-
ecLs or programs If such other use will not
IDt.crfere with the work on the project or
program for which the property was origi-
nally &Oqulred.. Plrst preference for such
other use shall be given 1.0 other projects or
pTO!n""ffiS nr><>n&ored hy .the Federal I\gency
that financed the property: 5ecODd prefer-
eDce shall be glveD to projects or programs
2<pOnsored by other Federal asencles. If the
property Is ovmed by the Federal Cklvern.
ment, use on other activities DOt sponsored
by the Ft:dernl Cklvernment shall be per-
missIble If authorized by the Feder..1 agenc)".
User charges should be cODfldered 11 appro.
prla te.
c. Duposition 01 other n.oncxpcnd!,ble
)'>Toperty.-When the recIpient no longer
needs the property ILS provided In 6b above,
the property may be used for other actl'/I-
ties In accordance wltb the follo....IDg stand-
IU"ds:
(I) Non.cxpcndablc property with a unit
acquisition co.t 01 Lcs~ than $l.OOO.-TIle rc-
clplent may use the property for other activi-
ties without relmburnement to the Federll.l
Government or sell the propert)" and re-
tnln the proceeds.
(2) Noncrpcndablc personal )'>Topcrty with
a unit acquuition co.t 01 :!,OOO or mOTe.-
The recipient mn)" retnln the property for
other uses provided that compcnsatlOn Is
mnde 1.0 the original Fedeml sponsoring
agency or ILs successor. The amount 01 com-
pell""Uon shnll be computed by nppl)'lng
tile percent"'ge of Froeml p..rtlc1r":IOll In
the co..st of lhe orlglnRI project or pro!;mm to
Ule current fair market. vnlue of the propert.y.
Jr the recipient hILS no need lor the property
and the properly hn.s further use val uc. the
reclpSent shnll H'!'<.]\Jcst disposition instruc-
tions from tbe orlglnnJ sponsoring agency.
I
Office of Management and Budget Circular A-110 (7/30/76)
The ~e/"l\1 spon.orlng I\gency shnll deter-
mine whether the property can be u,ed to
meet the agency', requirements. If 110 re-
quirement eXls\", within that ngency. the
availability 01 the property shall be report-
ed to the General Services Admlnl.tratlon
by the Federal agen"y to del,ermlne ....hether a
requirement lor the property exist., In other
Federal I\gencle.. TIle Federal sponsorln!;
agency sl'ol\1l Issue Instrucllons to the recipi-
ent no Inter than 120 dnys alter the reclpl-
ent's request nnd the following procedures
shall govern:
(a) 11 so Instructed Or If dlsposlllon In-
structions are not Issued within 120 cl\len-
dnr dnys niter the recipient'. request, the
recipIent shl\ll sell the property I\nd reim-
burse the Federal aponsorlng agency an
amount computed by applyIng to the sales
proceeds the percentage 01 Federal p!\rtlcl-
patlan In the cost 01 the orIgInal project or
pro!;'rnm. However, the recipient shall be
permitted to deduct nnd ret..ln Irom the Fed-
eral shnre 1100 or ten percent 01 the pro-
ceeds, whIchever I' grenter, lor the reclplent.s
selling and handllng expenses.
(b) II the recipient ts Im.tructed to ship
the property elsewhere, the recipient shnll
be reimbursed by the benefiting Federal
ngency with an amount which Is computed
by applying the percentage 01 the reCipient's
participation In the cost 01 the origInal grnnt
project or program to the current lair market
value 01 the property, plus nny rensonable
shipping or Inter1m storage costs Incured.
(c) l! the recipient Is Instructed to other-
wise dispose a! the property, the recipIent
shall be reimbursed by the Federal sponsor-
Ing agency lor ouch costs Incurred In Its
dl.,posltlon.
d. Property manapement .tandard. lor
nonerpendable properly.-The ~eclplent's
property management standards lor nonex-
pendable personal property shall Include the
loll owing procedural requirements:
(1) Property records shall be maintained
accurately and shall Include :
(a) A description 01 the property.
(b) Manull<Cturer's serIal number. model
number, Federal stock number, natIonal
stock number, or other Identlncatlon num-
ber.
(c) Source 01 the property, Including
grAnt or other &STeement number.
(d) 'Whether title vests In the recIpient or
the Federal Gove,n>ment.
'(e) AcquIsltlon date (or d..1e received, II
the property ...'as furnished by the Federal
Oovernrnent) and cost.
(I) Pcrcentage (..t the end 01 the budget
you) 01 Federal partIcipation In the cost 01
the project or prosram lor ...'hlch the prop-
orty ~'as acquired. (Not applicable to prop-
...ty furnished by \he Federal Government.)
(g) Location, use and condition 01 the
property and the d..~e the Inlormatlon was
r.porte<1.
(h) Unit ncqu\.cltlon co.t.
(I) Ultlmnte dlsposltlon data. Includln.
do. Ie 01 disposal and sales price or the method
u5ed \.0 determine current falr market. va.lue
....here a. reclp'~nl compen~R.t.es the Federa.l
""onsorlng asenc)' lor Its ~har..
(2) Propert'\' owned bv the Tederal Gov-
ernmont muai be m""k~d to Indicate Ted-
eral ownership.
(3) A physlc..1 Inventory 01 property .h..1I
be taken and the results reconcIled .dth the
property recorc\.s at le..st once ever'\' two
yeMs. An)' dlnerencn between quantities de-
termined by the physlcl\] Insp.ctlon and
thqse shown In the accounting records shall
be Investlgl\ted to determine the cl\uses 01
the difference. The recipient shall, In connec-
tIon wIth the Inventor)'. verily the existence,
current utlll.:z.atlon, ..nd continued need for
tho property.
(4) A control .),.tem .hl\ll be In e:roct to
1naurf adequn.t.e a:n.1.~un:-d5 to prc't'cn~ l~.
damage, or thelt 01 the propert.y. Any lON,
daml\ge. or thelt of nonexpendnb!e property
shall be Investigated and lull)' documented;
11 the propert)' ""'" owned by the Tederal
Government. the recipient .haIl promptly nO-
tlly the Federal sp,'n.orlng asency.
(5) Adequately maintenance procedures
shnll be Implemented to keep the property
In good condition.
(6) Where the recipient Is l\uthorl7.0d or
required to scll the property, proper "ales
procedures shnll be established which would
provide for competition to the extent prnctl-
enble and reslllt In the highest possIble re-
turn.
7. E:r:pendablc peT50nal properly.-TltI. to
expcndn!>le personal property shnll yest In
the recIpient upon ..cqlllsltlon. II there 'Is a
residual Inventory 01 such property exceeding
11.000 In totnl aggregl\te lair market value,
upon termination or completion 01 the grant
or other agreement, ..nd the property Is not
needed lor any other lederally sponsored
project or program, the recipient sh..I1 retain
the property lor u.,e on nonlederally spon-
sored activities. or sell It, hut must In elLlrer
. case. compensnte the Federal Go\'ernmont
lor Its &hare. The amount of compensl\tlon
shl\ll be computed In the snme m..nner as
nonexpendnble personal property.
8. Intanptble property.
a. InlJention$ and palcnt..-Ilany progrnm
produces patentable Item... p..tent rlght..,
processe.. or Inventions, In the cour.. 01
work sponsored by the Federal Government.
such lact shall be promptly and lully report-
ed to the Federal sponsoring ngency. Unless
there Is .. prior ..greement bet",'een the re-
cipient and the Federal sponsoring agency
on disposition 01 such Items, the rederl\l
spon50rlng agency shall determine whether
protection on the Invention or dLscovery shnll
be &Ought. The Federal spon.orlng agency
will also determine how the rlshts In the In-
vention or discovery-Including rlshts under
any patent l'\SUed thereon--6hnll be ..lIocated
and adminIstered In order to protect the pub-
lic Interest consIstent wIth "Government
Patent Policy" (presldent's Memorandum
for Heads 01 Executive Departments and
Agencies, August 23, 1971, and statement 01
Government paunt Policy as prlnte\! In 36
F.R. 16889).
b. CoPyri9h.t..-Except as other",.l.s. pro-
vided In the terrru; and condltlons 01 tbe
agreement, the author or the recIpient org..n-
IzatlOn Is Iree to copyrlf!:ht any books, pub-
llcatlons. or other COp)":'lghtable ma~rloJ.
dt'\'eloped In the CaUl''' alar under a red-
eral agreement. but the Peder..1 'pOll3Orlng
agency shall reserve .. ro)'alty-Iree. nonex-
clusIve and Irrevoc"ble right to reproduce,
publlsh. or other",'lse use, and to authorla..
others to use. the work lor Government pur-
p05CS.
ATTACHMJ:KT O.--CIllCt7t.A" No. '\-110
P'IILOCU,..NXNT STANDARDS
1. Thl' r.ttachment proTld... a.t..nd..rds for
ule by rec!plents In establlshlnt procedures
lor the procurement 01 a.upplles. equipment.
construction and other .erTlce. with reder..l
lunds. These stand..rd~ ue lurnlshed to en-
sure th..t .uch materlall and service. ..re ob-
taIned In ..n eflectlve m..nner "nd In com-
pliance with the provisions 01 appllc..ble Ted-
er..1 I...... and executIve orders. No addltlon..1
procur.ment st&ndards or requirements sh..ll
be Imposed by the reder..l sponsorIng agen-
cies upon recipIents unless speclncILlly re-
qulr.d by l".ederal stntute or eucutlve orders.
:2. The standards contained In this atl...ch-
ment do not relieve the recipient 01 the con-
tractu,,1 responslbllltle. ..rising under Its
contrac"'. The recipient Is the respon""ble ..u-
thorltr. without TecoUr~e t.o the P'cdera.l spon-
sorlnr.' agency regarding the settlement I\nd
sntlsrl\ctlon 01 ..11 o.o"tractual and I\dmlnl>-
I
A-110:21
t,..~I.. IIIUK arising out of procurements
entered Into, In lupport of .. grnnt or other
a!,reement. Thll Indudes dl'putes, cll\lm.,.
prolt~l& of "wnrd. .o\)riM .vA.luRtlon or othf>T
matte" of a eontractuftl nR.turc. M.f\ttf>l"8 con-
cernln. vlolntlnn 01 11\'" MO to be referred to
s\Och locl\l, 8tl\te or Tederal ..uthorlty M may
han proper tur\edl<:tlOn.
3. Recipients mo., u... their own procure-
ment pollclel and proced\lres. flowever, all re-
cipients shnll adhere to the Itandl\Tds oet
lorth In parngr..phl 3 and 4.
a. The recipient .hall mnlntRln a eode or
stnndo.rd., 01 cond\lct th..t .hall ~oYern the
perlormnnce of l\a omcer., emploYNls or
nGents encaged In the aWl\rdlnr. nlld ndmln-
Istratlon 01 e()n~r"cts \I"lng Federnl I\lnds.
No employee. omcer {)(' a~ent sh,,1I pnrtlclpnte
In tho .eleetlon, ......ard or ndmlnlstratlon 01
a contr..ct In whIch l"edera} lunds Me \lsed,
where. to hi, knowledse, he or his Immedll\te
lnmlly, partners, or organization In .....hlch he
or his lmmedlnte lnmlly or pnrtner h.... a
nnnncllll Inlerest or ....Ith whom he Is nego-
tll\tlng or hM any arrangement concerning
pro.pectl.. employment, Th. recipient.,;. of-
neer>, employees or agents sh..lI neither .ollc-
It nor aoeopt gratultlel, Il\vors or I\nythlng
or monet.ary Vf\hle from contrnctoTs or poten-
tl..1 contrl\ctors, ~uch Itandnrds shall provide
lor dIsciplinary actions to be applied lor vio-
lation. or such st..ndards by the reclplent.s'
officers. employees or lLf':ents,
b. All procurement vansactlorul shall be
conducted In a mnnn..,- \0 provide, to the
.maxlmum extent practlc..I, open and lree
camp' titian. The recipient should be alert
to org-r.nl"'''tlonn.1 conmcts 01 Interest or non-
oomp..tltln prftoCtlces ..mo"g oontrnctoTl!
that mAY res\.Met en- eUm1n..1e competitIon
or otmerwL-..e re.trAl" lrlUle. In order to en-
sure objectlTe contrlLCtor perlorm..nce ..nd
ellmln..t.<> unltlJr competltlv. ad 'l'an tl'f',., con-
trn.cllOrs that develop 00" llrr..1t spectncatJoD5.
requl~ment.s, O'tntemenl1s 01 wor~, InvIta-
tions Jar bIds and/D<" requoots lor ~Is
should be excluded lrom c..o<npetlng lor .uch
procurements. AvmrOa Ill:>eJ] be made to the
bldd~/oll'erOl' ....hose bld/orrer l.3 rCtSpOn&lve
to thl .elicitation &nd 101 meet a.dv..nta.gCO'Ull
to the reclJ>>efit, P<'lce and other lacto"' oon-
sider<<!. Sollclte.tlolOl shell clearJ)' set forth
I'll requlrement.s th"t the bidder /oll'e<ror must
lu.Jt\1l In order lor h1<5 b+d/oO'er to be e",lu-
..ted by ~h. re<::lplen~. Any and all bld3/orrer!
1TlI\1 be rejecloed when It ls In the reclplent's
Int.trut to do 80.
c. All recipIents ..."all ....t<\blh;h procu:-e-
ment procech1reo t,b&t proTl<1~ lor, at a mln-
Imum, the lollowlng Jl'I"?C"<Iur&!Tequlrements.
(1) Proposed prOcf1rea>ent actions shall
10110.... a pr~ur. to ...."ure thl avQ1dt\nce
01 pUrcllMlng unn~y 0<' lhlpllca.ttve
l\..onu. "''here ",pP<'opri&k. an an..!}"'\<> sh..lI
b. ~ 01 le&6C and purc.h......e, ..Jt.,,-na.t.!'....
00 dekrmlne whloch ",,'Ould b. the most
eoonomJOAl. p"..c~\cB.1 proe-urement.
(2) foollcl\:J8.\loru lor ~c:>od<o and "",nlces
.hall b. 'btued upon .. c~ar ..nd accurate
doecr1ptlOn 01 the \c<>hnic..J reql1Jnmenl.6
ler th. rn..t.<'l..l, proc:h.><t or "..,,-Ice to be
procurod. Such .. d.,..,rl?t.IOn shr...ll not. In
com.petltlve pT'OCurem..nu. contl'ln lee.tur""
....hlch unduly r...tMct com.pltltlon. "Br..nd
"...m. or .qu...l" desCTlptl<>ru mny be u..d
Lll a mep\n& to ~nn. the pertormr..noc or
other ....1I.nt 7equlr......ent.o of a procurem.nt,
..nd ....hen 0.0 \lood the "peclnC features 0: the
n..mKl bn."d ,..h.1ch must be met by blddon /
orrer~rs .ha.J.l be clearly opeC1ned.
(3) Posltl.... elTorts "h..1I b. mMIe by the
reclplenL' to utilize sm..lI buslneM .."d mJ-
norlt\'-own~d buslneN sources of &upnUel
and ~.,.vlo.es. Such effor\.l should allow the...
sourcu ~he maximum f....lbl. opportunIty
to comp.\.o lor contract. utll1r;lng :r.der..l
lunclc.
(4) TIlt tY'Pe of proel1rln~ lrutrumonr.o
u,C'd. ...., IIxed prlc' oont,......t.s, ooet r.l1\'I-
I
Office of Management and Budget Circular A-110 (7/30/76)
burMl>le oontract.s, purch,,-'" orders, Incen-
tIve contrnc\..~, shall be deLermL")ed by t.he
rrelplent but mll5t be appr<,prlate (or the
partloulnr procllroment and (or pwmf>t1nr,
the best Int,crl>5t of t.he prormm Invol\'cd.
111e "eost_plll.;-n-percenl-age-ol-co.st" meUl'
od o( cont.rn..ctlng shall not be used,
(5) Contrn..c\..~ shnl be mfloe anI)' with re-
sponsible con tr!\Ctor.5 who p'...."C66 the po.
tentlonll.l Ilblllt)' to perform succe3.'\fully
undN the t,crms "nd condItions of a pro-
posed procurement.. Consideration shnJl be
given to such mAtt,cr6 e.s cont.rn.ctor In te(;T1 t)',
rcoon::! of past per(ormn.nee, finnnclnJ and
\.CChnlonl resourcc.s or n.c<:C'>5H,lllll' to oUler
ncces:s.n.ry rCSO\1rr..cs.
(G) All proposed sole source conlruet.' or
wJH'rc only one bid or proposn..l 1.5 rN:ch'cd
In whioh Lhe ~(;rcg1\Le expendlt.ure Is ex-
peeled ILl exceed t-5,Ooo shrdl be subject to
prior approvnl nL Lhe dlscreLI...n o( !.he Fed-
ernJ sponsorln.. ~ency.
(7) Some lorm o( prIce or coot anal\'sls
should be mnde In connectlon with e~erl'
p~ocuremenL !\CUon. Price annl)'s\!; JTV\)' be
n.ccompIL..hed In \'arlou!; waY-'. Inch.dln{: the
compnrlson o( price quol.nUons submitted,
mnrkct prices and sImilar Indicia, together
wlLh l11soounts. C<<;t annl)'6ls Is the review
and e\'aJulltlon of each clement o( co..>t to
det.cnnlne ronsonn.blencss, alloca.blllt\' and
allow....bUlty. .
(B) Procurement records a.nd files for pur.
chn.soes In excess of "10,000 shall Include the
f 0110"'''.1 n.g:
(Il) B><sls for contra.ctor selectIon:
(b) Justification lor lack of competition
..:hen competitive bIds or olIe/"6 are not
o b\.llJ n 00.;
(c) Basis for award C06t or price.
(9) A system lor contract a.clmJnlstrntlon
&hllll be m.alntn.Jned to ensure contrllctor
conformance with terms, condItions Ilnd
specifications of the contrn.ct, Ilnd to ensure
lUlequ"u: and timely lollowup o! all pur-
chases.
{. The recLplent shall Include, In a.cldltlon
to provIsIons to define a sound and complete
. ab'"eement, the followIng proY1.sloru; In all
contracts. These pro\'lslons shall nlso be ap:
plied to subcontracts.
a. Contrn.ct.s In excess of ~IO.OOO shl\.ll con-
tain contr=tual p"o\"1slons or cond:tJons
that wlll dlo",' lor ad.m.lnl.strntlve. con~rn<:-
1;1..11\1 or legal romedJe:s In Instances In "'"blch
contractors vlola.Le or breach conLr&.a Lerms.
and provIde (or sllch remedial actions as
~y be approprlaLc.
b. All contrnet.s In exccs.; o( ~IO.OOO shall
conll!1.ln sul\.nble provl.slons for Le:-m.lne.tlon
by Lherectplellt Incllldlng Lhe mnnne7 b\'
",'hlch LermJnatlon will be eITect.cc and the
bAsis for settl..,nen-l. In a.cIdltlon, sue.'> con-
trs..ct.s shllll describe condlLlcns unde~ whIch
Lhe oonld"n.ct mJ\Y be LennlJll\.\..ed for dcfllult
a....; wcD fL.S colH..ltUons where the ('onlrfLCt. nlay
tH:' t.('rtn!llnlcd bC'C1\..\1~C of OITCUJ11..~lu.nc~ be-
yond the COllLrol o( Wle oonuact.or.
c. In a.il cont-fRets for con!'lrucllon or !R-
e.l1ity Improvement a"',,rded for more t1Wll
S;lO(),OOU, recipient.. shnll OU5l"l"\'e l.he bolld-
Ing rcqulrement.s pro\'1ded In ALt.HchlllellL D
to this clrcullU".
d. All contrl\Ct.~ awnrded by reclplenLs Ilnd
their oonld"!\Clor; or sllbpnnte'!S hl"'lnl; a
vnllle of more than $10.000, shall cont..ln a
pro\'ISlon reqlllrUlg compltnnc"" "it.h Execu-
tive Order 1124G, entitled "Eq II nl F..mploy-
ment Opportunlt)'," ns amendcd by ExecutIve
Order 11375. and as supplemented In DepMt-
ml'n t o( Labor reg illations (41 CFR. Pnrt GO) .
c. An contrnct.s nnd suh~rnnt.~ In excess of
~2.000 fOT construction or Tcpolr ownrdcd hy
rcclricnt..o; Rnd subrcc'plcn'\..o,; ~hnU tnchldc n
provision (or compliance wlLh the Copeland
"Antl-Klck Dack" AcL (IB U.S.C. 814) "-'
sllpplemented in Department of Lubor
re~ulatlons (29 CF"fi. Pnrt 3). This Act pro-
\'Ides that each contractor or subgmntee
shall be prohlblLed from InducIng, by III1Y
meal1S, IlI1Y person employed In the cOI\.'true-
tlon. completion, or repaIr of publiC "'orl~, t.o
give up any part of the compensntlon Lo
which he Is otherwise entItled. The recipient
shall report ,,11 suspecLeCl or reported vlola-
tlons t.o the Federal sponsoring Ill;ency.
1. When required by the Federal proGram
leglsJatlon, all construction contracts
aWllrdeCl b)' the reclplent.s and subreclplent.s
of more than f.2.000 shall Include Il pro\'lslon
lor compliance ",'Ith the Da\'Is-Bacon Act (40
U.S,C. 2761' to ..-7) and ns supplemen'l.cd by
nepartment ol Labor regulations (2~ CFR.
Part 5). Under this Act contracLors shall be
required to pay ",'ages to laborcrs Ilnd me-
chanics at a rate not less than the minImum
""ages specified III a wage deLermlnatlOn made
by ,the Secretary ol Labor. 1;; adClltlon, COD-
tractors shall be required to pay wages not
less than once a week., The recIpient shllll
place a copy of the current prevailing wabe
deLermlnatlon Issued by the Department of
Labor In each solicitation and the award
of a contract shllll be conClI.tloned upon the
acceptance of the wage determlnatlon. The
recipIent shall report all suspected or re-
ported vlollltlons to the Federnl sponsorlnb
agency.
b' Where applicable. Illl contracts awarded
by reclplent.s In 2xcess of ~.2.000 lor construc-
tion con'tract..~ and in exceES of t.::!.500 ~or
other contrllct.s thnt In-:olve the employment
of mechanIcs or laborers, shall Include a pro-
\'Islon for compliance ",'Ith sectIons I 03 and
107 of the Contract Work Hours and Safety
St"ndarCls Act 140 U.S.C. 327-330) Il.S sup-
plemented by Depllrtmen.t of Labor regula-
I
A-110:22
tlOI\.' (29 CFR, Part 5), Under see lion J03
(If the Act, ~llch contrnclor :->h:Lll be T('-
qulTed to (".nnlpule lhr \1.'n~C5 of evcry tne-
chnrlle RHO laburer on the ba.c;.ls of n standnrd
work dny of Po lH)\I~ f\nd n fitl\lldllrd \\'ork
week of 40 hOllrs. Work In excess o( the
standnrd 9.orkdoy or wor~:wcrY.: 1~ pcrrl\ts,sllJlc
IHO\'ldcd lhR.t the worker 1s cornpcl\'!-:ntcd nt n
rllte o( noL less than I y, times lhe bnslc
ralc of pay for 1\11 hours wortcd in excess
of (\ hours in nny cnlclldn,r dny or 40 h0\1T5
In the workweek.. SecLlon 107 of the ACI. IS
nppllcable to constrllction work IIlId provides
that no Inborer or mechallic shnll be reqlllred
to work 1n S\1rrouJldlng~ or under worktng
rnudtl10ns whkh nre ullsnnlt.nry, haz.ardol1f.
or dnngrroH5 \.0 hIS lH'nlth and !';I\f('ly I...." d(l_
\erJulnN1 under construc.tlon snfclv nnd
hcnllh fitnlldO\rds prnI1H11,~n\.('d by the'secrr-
tnry or Lnbor. These rCflutrCI1\(,lll:" do 'lot
npply to th~ purchn.scs of S\1rpnC~ or nln\.c-
rials or nrtlr:lcs ordinnrlly nVhllnblc Oil thc
opcn rnnrkcl. or contf(~ct...c; for trl\.Jl!"porlntlon
or Lral1:;;n)l~<;lon of \ntrlltb"Cncc.
h. Contrl\ct.' or nl&eement.', t.he prlllclpnl
}Jurpw:;c of. which I!; \.0 crclllc. dc\'clop or tln-
prove prod\lct.s, proccssc5 or nlct.llods: or for
explorallon InLo tlelds Lhal dlrecll)' concern
public henlLh. sa(ety or welfare; or contrncLs
In the field of sclcnce or lechnology In which
lhere hns been IIUle ";I:nlr,cant experience
out..lde of work funded by FeClernl [\.">5I,t-
ance, shnll conLaln n nollce to the ellect ,thnt
ml\t.ters rebnrdlng right.. to Inventions nnd
mnlcrlnls gen~ratcd under the contrnct or
n(;TCCmcnt n.n: :::ubJcct to the rcgulnUonf. is-
sued by the Fcdernl spons.orlnG aGency nnd
the recipient. The conLrnetor shall be ad-
vl'-ed n..s to the source of addl llonal 111(orml\-
tlon n:gnrd:ng these mnLLers.
\. All negotiated conLraots (except those
of '-10.000 or less) a'.:!\Tded by recipients
shall Include a pro\'lslon to tbe elIect. thnt
the recIpient, the Federal sponsoring agency,
the Comptroller General of the UnIted States.
or any of Ilhelr dilly authorl7.ed represclltn-
U\'es. shall h"ve Ilcce,," to any bool:5, docu-
rnent.s, pnpers Ilnd records of the contractor
,,'hlcll are directly pert.lnent to a 6pCClOc pro-
grnm lor the purpose of making "udl:.s,
examlnntlons. excerpt.' and transcriptions.
J. Contrnct.s and subgrnnt.s o( amo\lnt.s In
eXcess of $100,000 shall contain a provision
that requires the recIpIent to agree to com-
ply ",'Ith all applicable s\.llndlU"ds, orders or
regulntlons Issued pursuant to the Clear Alr
Act of :~70 (42 V.S.C. IB57 et sec;.) and the
Federlll WM.cr Pollution Contrn! Act (33
U.S.C. 1251 et seq.) n..s amended. VIolatIons
shall be reported to the Federa] sJ)9nsorln&
ngency and the Regional .mce o( the En.
\'ironment,,1 ProtectIon Agency. .
IFR Doc.76-21904 Flied 7-29-76:B:45 amI
I
APPENDIX H
OMB
Circular A-122
_I
.
'.
I
Office of Management and Budget Circular A-122 (6/27/80)
OfRCE OF MANAGEMENT AND
BUDGET
cvoolar A-122, ''Cost Principles for
Nonprofit Organizations"
AGENCY: Office of Management and
DudCet.
ACTION: Final Policy.
IlIne 27. l!lUO
To The Heads of Executive
Departmenls and Estnblishments
Subject: Cost principles for nonprofit
organizations.
1. Purpose. This Circular estaLli:;hes
principllls for determining costs of
grants. contrilcts and other lIgreements
with nonprofil organizations. It docs nol
apply 10 colleges ar.d universities which
ilre covered bv Circular A-ZT: Stnle.
local. and fe.demlly recognized Indian
tribal governments which are covered
by Circular 74-4; or hos?ilcls. The
principles are designed to pro\'icie that
the Federal Government bear ils fair
sharl:! of costs exceot where restri<:ted or
prohibiled by law. The principles do not
n tlempt 10 prescribe"the extent of cost
sharing or ma tching on' grants. contracts,
or other agreemCl~ts. However. such cost
sharing or ma lching shall no: be
accom;:>lished through ",rbitTary
limitations on individual cost de.nenls
by Fede.al agencies. Provision fer profit
or other increment above cost is outsid",
the scope of this Circular.
2. Sl:persession. This Circular
supersedes cost principl.::s issued by
indi vidual agencies for non'profit
organization,
3, Applicability. <I. These principles
shall be used by all.Federal agencies in
determining the .costs of work performed
by nonprofit organizations under grnnts,
cooperative agreements. cost
reimbur:;emenl contrar-Is. and other
contracts in which costs are used in
p,icing. administration. or s~ltlp.menl.
All of these instrumenls arc nereaflcr
referred to as awards. The principles do
not apply to awards under which an
organiza tion is not required to account
tu the Governmenl for actual costs
incurred.
u. All cost reimbursement sulwwanls
[subgrnnls, subcontracts, etc.) are
subi~clto those Federal cost principles
applicable to the particular organization
concerned. Thus. if a subaward is to Ii
nonprofit organization. this Circular
'shall apply; if a subaward is to a
commercial organization. the cost
principles applicable to commercial
CC!1cerns shall apply; if a subaward is to
R college or university. Circulur A-21
shall Rnplv: if a sul'ilward i~ \0 a StaIr..
local.-or fcdep8Hyreud~i:zed l!ldllln;
tribal government, GirculllJ 7~ shall
apply.
4. Definitions. a. "Nonprofit
organization" means any corporation.
trust. a~sociation, cooperative, or other
organization whrch (1) is operated
primarily for sdcntific. educational.
service. charitable, or similar purpose&
in the public interest; (Z) is not
organized primarily for profit; and (3)
uses its net proceeds. to maintain,
Improve. and/or expand its operations.
For this purpose. the term "nonprofit
organization" excludes (i) colleges and
universities; (ii) hospitals; (iii) Slate,
local. and federally recognized Indian
tribal governments; and liv) those
nonprolit organizations which are .
exclUlled from coverage of this Circular
in accordance with paragraph 5 below.
b. "Prior approval" means secu~ing
the awarding agency's pc:rmission in
advance to incur cost for those items
that are designaled DS requiring prior
approval by the Circular. Generally this
permission will be in writing. Where i1n
item 01 cost rfquiring prior approval is
specified in the budget of an .award.
approval of the budget constitutes
approval cf t~at cost.
5, Exclusion 0: some nonprofit
organizotions. Some nonprofit
organizations, because of their size and
nature of operations. can be considered
to be similar to commercial concerns for
purpose of applicability of cost
principles. Such nonprofit organizations
shall operate under Federal cost
principles applicable to commercial
concerns. A listing of these
organiza lions is contained.in.
Attachment C. Other organizaaons may
be added from time to time.
6. Responsibilities. Agencies
responsible for administering programs
that involve awards to nonprofit
organizations shaU implement the
provisions of this Circular. Upon
requesL implementing instruction shall
be furnished to the Office of
Management ~.ld Budget. Agencies shall
designate a liaison official to serve 85
the agency representative on moilers
relating to tbe implementation of this
Circular. The name and title of such
representative shall be furnished to the
Office of Management and Budget
within 30 davs of the date of this
Circular. .
7. Attachments. The principles and
related policy guides are set forth in the
foIlo....'ing Attachments:
Altachment A-General Principles
Altachment B--Sclected Hems of Cost
Attachment G-Nonprofit
Organizations Nol Subject ~ This
Circular
I
A-122:1
8. Requests for exceptions. The OUice
of Management find Budget may prant
exceptions 10 the requirements 01 this
Circular when permissiblr. undr:r
existing law. However. in the interest of
achieving maximum uniformity.
exceptions will be permitted ool)' in
highly unusual circumstances.
9. Effective Date. The provisions of
this Circular are effective immedia tel".
Implementalion shall be phased in b};
incorporaling the provisions into new
awards made after the slart of loe
organizalion'e next fiscal year. For
existin,g awnrdsLhe new principles may
be applied if an organization and the
cognizant Federal agency agree. Earlier
implementation. or a delay in
implementation of individual pro-risioll'S
iz also pcrmilted by mutual agreement
between ;m organization and the
cognizant Federal agency.
10. lnquiries. Further information
concerning this Circular may be
obtained by contacting the Financial
Managemenl Branch. Budget Review
Division. Office of Management and
Budget. Washington, D.C. 20503.
telephone (202) 39H773. -
James T. Mcintyre. Jr..
Director,
ICircular No. A-122]
Attachment A
General Principles
Toble oj Con/er.ls
A. Basic Considerations
1. Composition of total costs
2. Factors affecting allowability of cosls
3. Reasonable cosls
4. Allocable costs
5. Applicable credits
G. Advance understandings
B. Direct Cosls
'\
C. Indirect Costs 4-
D. Allocation of Indirect Costs and
Determination of Indirect Cost Rate'
1. General
2. SimpliIied allocation method
3. Mvl1iple allocation base method
4. Direct allocation method
5. Special indirect coot rales
E. Negotiation and Approval of Indirect Cosl
Rates
1. Definitions
2. Negotiations and approval n{ rales
[Circular No. A-122]
Allachmcot A
Gcr;eral Principl'.ls
A. Dasic ConsideratiolJs.
1. Composition of total costs. The total cost
of an award is the ~um of the allowable
dll"ccl and allocable indircGt cosls less aoy
applicablc credits.
2. Faclors oHecling cJloll'obiIily of costs.
"
I
Office of Management and Budget Circular A-122 (6/27/80)
To be allowable undcr an award, costs nro~t
mE:et the following gencral critcria:
a. Dc rellBonable for the performance of the
award and be allocable thereto under these
principles.
b. Conform 10 any limitations or exdusions
sel forth in thcse principles or in the a Wllrd
as to Iypes or amoJ~t of cosLllems.
c. De CODsislCl;1t wjlh policies and
procedurcs that apply uniformly to both
federally financed and other activities of the
organization,
d, DIl accorded consistent trea tment.
e. Dc determined in accordance with
generally accepted accounting principles.
r. Not be included as a cost or used to meet
cost sharing or matching requirC!Ilents of any
other federally financed program in either the
current or !I prior period.
E. Bc adequately documenred.
3. R/'!osunoble cosls. A cosl is reasonuble
if. in its nature or amount. i(does not exceed
that which would be Incur,.~d by'a pn:denl
person under the circumst,rnces prr.vaning at
the time the decision was made to incur the
costs. Thc question of the n:asonableness.of
specific cos:s must be scrutinized with
particular carc in connectign with
organization. or separate divisions thereof
which receive the prepond'erance oflbeir
support from awards made' by Fede'T<l1
agen'des.In determining the reasonablr.ness
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 Ihc organization or lhe
performance of the award.
b. The restraints or requirements imposed
by such factors as generally accepted sound
business practices, arms l'ell8:h bargaining.
Federal and St<lte laws and regulations. and
terms and conditions of the award,
c. Whethcr lhe indjvld~ls'concerned acted
,.,.ith prudence in the circumstances,
considering their responsibilities to the
organization. its members. employees, aod
clients, the public at large. nnd the
Government.
d. Significarit deviations from the
established practices of the orgJnization
which may unjustifiably increase the award
costs.
4. Allocable costs.
a. A cost is allocable to a particular cost
objective. su~r. as a grant. project. service, or
other activity. in accordanCll with the relative
benefits received. Acost is allocable to a
Government award if it is treated
consistently with other costs incurred for the
same purpose in like circumstances and if i't:
(1) Is incurred specifically for the award.
(2) Benefits both the award and other work
a;Jd can be dis:ributed in reasonable
proportion to the benefits received,
(3) Is neccssary to the ovcrall operaLion of
the organization, althouoh a direct
relationship to any particular cost objective
cannot be shown.
b. An~' cost allocable to a particular award
or other cost objective under these prinr.iples
may not be shifted to other Federal aW'lrds to
overcome funding deficicncies. or to avoid
rcstriclions imposed by low or by the terms
of ihc award.
5. Applicable credjL~.
a. The term applicable crcdits refcrs to
those receipts. or reduction of expenditures
which opera te \0 orlsct or reduce expanses
items that Bre allocable to awards as direct
or indirect cosh. Typical examples of such
traneactions are: purchase discounts. n:bates
or allowances, recoveries or indemnities on
losses. insurance relunds, and adjustments of
overpayments or errooeous charges. To lhe
extent that such credits accruing or received
by the organization relale to allowable cost
they shall he credited 10 the Government
either as a cost reduction or cash refund as .
appropriate.
b. in some instances. the amounts received
form the Federal Govcrnmentto finance
organizational activities or service operations
should be lrealed as applica ble credits.
Specifically, the concept of nelling such
credit items against related expenditures
should be applied by the organizaton in
determing the ratcs or amounts lobe
organiz.ation in determining the rales or
arnaounts tobe charged to Federal awnrds
for services rendered whenever Ihc facilities
or other resources used in providing such
scrvices have been financcu clirectly. in
whole or in part, b)' Federal funds,
a(c) For rules covering program income
(Le.. gross income earned from federally
supported activities) see Allachment D of
OMI3 Circular A-110.
6. Advance and understandings. UnGer <lny
given"award the n:asonablenc-ss and
allocability of certain items of costs may be
difficullto determine. This particularly true in
conDeclion willi orgiziltioru Ihat receive a
preponderance of their support from Fcdcrul
agencies. In 'order to 6,'oid aubsequant
disallowance'or dispute based 011
unreasonableoe~s or nona1l6cabilily. it is
often desirable 10 seek a wril\en agreement
with the cognizant or awarding 'a"genc~; in
advance of the incurrence of speCial or
unusal costs. The absence of an advance
a!1reemenl on any element of cost will not. in
it~elf, afiect the reasonablcness or
aliocability of that element.
B. Direct Costs
1. Direct costs IIrc lhose that can be
identified specifically wHh a particular linal
cost objcctive: i.e.. a particular award.
project. service, or other direct activity of an
crgflnizntion. However, a cost m<lY not be
assi~ned to 6n award as a direct cosl if anv
oih~r cost incurred for the same purpose. i~
like circumstance. has been allocated to nn
award as an indirect cost. Cusl iden:ified
s;1<!ciflcl<lIy with awards are direct cosl of the
awards end are to be assigned directly
(hereto. Cost identified specificaliy with other
filial cosl objectives of the organization arc
direct costs of those cost objectives and are
nolto be assigned to other award. directly or
ir.rlirp.ctly.
2. f~ny direct cost of a minor'amount m:JY
be treated as an indirect CO$t ofar reasons Ilf
prucUca!:ty where the o..collnttrealmenl for
such cost is consislently <lpplied to all final
cost objecti\'es.
3. The cost of certain activities arc not
allowable liS charges 10 Fcdclal awards [~ee.
for e>:arnple. funrl raising cost~ in p<lrilgraph
_I
A-122:2
21 of Allnchment Dj, However, even though
these cost~ Bre unallowable for purposes of
computing chargcs to Federal aW<lrrls. they
nonethele~s must he trcated as direct cost for
purpose. of rlctermining indirect cost ra tes
and be allocated their shlire of the
organization's indirect cosls if thr.y represent
acti\'itieswhich (1) include the snl8ric~ of
personnel, (2) occup~' sp~ce, and {3) benenl
from the organization's indirect costs.
4. The costs of activities performed
primarily as a service to members. clients, or
Ihe general public when significant nnd
nccessary to Ihe orgunization's mission must
be lIea ted a8 direct costs when or not
allowuble nnd be allocatcd an equitahle
share of indirect costs. Some examples of
these lypes of activitics include:
II. Maintenunce qf membership rolls,
subscriptions, publicaliom. nnd relnted
functions.
b. providing services and information to
mr.mbers. legi~lative or administrative
bodies. or the public,
c. Promotion. lobbying. and olher forms of
public rr.lation~.
d. Meetings and confercnces except those
held 10 conduct the general administrHlion of
the organization,
3. Mainlenacne. protection, and investment
uf ~pecial funds not used in opera tion of the
or8uniza tion,
r. Administration of group benefits on
behelf of members of clients includirlg life
.and hospital insurance, annuity or retirement
plans, finnncial aid. etc.
C. Indirect CosL
1. Indirect costs are those that have been
incurred for common or joinl objectives and
caonot be readily. identified wilh a p<lrlicu\ur
final wsl objecti\'e. Direct c.:>sl of minor
ar.1ounl, may be trealed as indirect costs
under the co"nditions described in paragraph
D.2. abo"e. After dirl~ct cost9 ha ve been
determined a nd assigned direclly to 8 wards
or other work as appropriate. indIrect costs
p.rf those rem:.ining to be allocated to
bellefiting co~, objcclives. A C05t m~.y not be
allocated \0 an award as an indirect cost if
flUY othp.r cosl incurret for the iame purpose.
in Eke circumstance~, 'has been aS8i!l~ed 10
an i<\"o:ard as 8 direct cost.
2. Because of the diverse characteri5tics
lI:'1d accounting practices of nonprofit
crganizations, il is not possible to specify the
t\'Df'S of cost which maY be classified 88
i~riirp.cl cost in all situ~tion. However. typical
e.(amples of indirect cost for many nonprofit
o"ganiza tions may include deprecia tion or
I:se aHowance..s 01"' buildings end equipment.
the costs of oper.,ting and maintaining
f"cilities. and goocral admioistration and
g!'!leral expenses. such as the saluries and
expenses of executive officers. personnel
ourr.ini5tration. and accounting.
D. Allocation of Indirect Cost and
Dr/arm/notion 'of Indirect Cost Rules.
1. General.
u. Where 8 nonprofit organization has only
one rr.kjllr function. or w:.el"e ail its major
functions benefit from itsindirer.t costs to
ajlproximately the same degrpe, the
~Iiocnlion of indi:cct costs Rnd the
I
Office of Management and Budget Circular A-122 (6/27/80)
computation of an indirect costnte mJtf be
accomplished through simpliried alloCJition
procedures as doscribed in parasraph 2
below.
b. \o\/here an organir;ation has several major
lunctions which benefitlrom its indirect costa
in varying degrces. alloca tion of indirect
costs may rcquire the accumulation of such
costs Into separale cost groupings which then
are allocaled individually 10 benefiting
lunctions bv meRns of a base which bcst
measures the r~IRtive degree of bencfit. The
indircct costa allocated to each function are
thr.n distributed to individual Awards and
other Rctivities includcd in thai dunction by
means of un indirect cosl ralc(s}.
C. The detcrminution 01 what constitutcs an
orgRnization's major lunctions will depcnd on
its purpose in bcinb; thc types of scrvices it
rcnders to thc puolic, ita clients, and its
mcmbcrs; and thc "mOllnt of crrort II devoles
to such activities os lund rolsing. public
inlormation and membership activities.
d. Speciric methods for allocating indirect
cosls and computing indirect cost rates along
wjth the conditions under which each method
should be used are described in paragraphs 2
through 5 below.
e. The base pcriod for the alloca tion of
indirec.t costs is the period in which such
costs are incurred and accumulated for
allocation wo work performed in that period.
The base period normally should coincide
with the organization's fiscal year. but in any
evnt, shall be so selected a& to avoid
Inequities in the allocation 01 the costs.
Z. Simplified allocation method.
a. Where an organization's major lunctions
beneW from its indirect costs to
approximately the same degre, the lJ!localion
of ind:rect costs may be acco:nplished by (i)
separating the organization's total costs lor
the base period as either direct or indirect.
"nd {iil di\'iding tbe total allowable indirect
cosls (net olap.piicable credits) by an
equitaole distribution base. The resull of this
proccss is an indirect cost rate which is used
to dislribule indirect costs to individual
a wards. The rete should be expressed as the
percenlage which the tolal amount of
allowaule indircct costs oo::ars to the basc
selected. This method should alos be used
where an organization has only one major
lunction encompassing a number of
individual projects or IIcti,.ities. and may be
used where the level 01 Federal awards to an
organization is relatively small.
0. both the diroct cosls and the indirect
ccsts shall exclude capitli) expenditures and
unallov.'able costs. I iowever, unallovJllble
costs which represent Activities must be
included in the direct costs under the
conditions described in paragraph B.3. above.
c. The distribution base ma)' be total direct
cosls (excluding capital exp.mditures and
other dislorting items. such liS major
subcontracts or s:Jb!;ranta). direct sclaries
a nd wages. or other base which results in an
equitable dislributior.. The distribulion uase
shall generally exclude pa[lidpant suport
cosL' as delined in paragraph ZII of
Allachment B.
d. Exce~'l whcrc a SJ.1CCiH! rele(.) i.
required in accordance with paragraph 0.5
below, the 'indiTec.t.cmit rail! Q..oWGloped. ....cUlr
the abnve prine-Aples.is Al1PliCllb\e .LD all
award, Btthe Ol1lani:u<lion..u a spocial
ra tel a) is required. .appropria te modif.CII tioru
ahall be made in order LD dcvelopthe special
rate(s}.
3. Multiple allocation base method.
&. \,-'here an o~anization's indiract cosla
benefit its majorfunctiona in ,'arying degrees.
such cosla shall be accumulatod inlo separate
cosl groupings. Each grouping shall then be
allocated individually to benefiting funclions
by mea", 01 a base which besl measures lhe
relative benefits.
b. TIle I/roupings shall be estllblished so 8S
to permit the allocation of each grourin~on
the basis of benefits provided 10 the major
lunctions. Each groupi~ should constilute 8
pool 01 expcnses thaI ore of like character-in
terms of the lunctions they henefilllnd in
tertllS of the ulloclllioll h"~,, whh~, IIl,st
measurs the relative benefits providd to each
function, The number of separate groupings
should be held within practical limits. taking
into consideration the materiality of the
emounts involved and the degree of precision
desired.
c. Actual conditions must be taken into
account in selecting the base to be used in
allocating the expenses in each srouping to
benefiting functions. When an allocation can
be made by assignment of 8 cost grouping
directly to the lunction benefited. the
allocation shall be made in that manner.
When the expenses in a grouping are more
general in nature. the allocation should be
made through the use of a selected base
which produces results that are equitable to
both the Go\'ernment and the organization. In
general. any cost element or cost related
factor associated with the organization's
work is potentially adaptable for use 8S an
alloca tion base provided Ii) it can readily be
expressed in terms of dollars or other
quantitative measures [tolal direct costs,
direct salaries and ....agt<s, slarr hours applied,
square leel used. hours of usage. number of
documents processed. population served. and
thc like) and (ii) it is common 10 the
bcneli ting lunctions during the base period.
d. Excepl where a special indirect cost
rate(s} is required in accordance with
paragruph 0.5. below. the separate groupings
of indimct costs allocated to each major
lunction shall be egregated and treated as a
common pool lor 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 ra Ie.
e. The distribution base used in computing
tIle indirect cost rate for each lunction mav
be tolal dirflct costs (excluding capital .
r.:.;penditures end other distorting items snch
uS major subcontracts and subgrants), direct
salaries Bnd wages, or other ase which
results in an equitable distribution. The
distribution base shall generally exclude
participant support costs as delined in
paragraph 29, Allachment B. An indirecl cost
rule should be developp.d lir each separate
indirect cost pool developed. The rate in each
case should be staled as the percentage
which the amount 01 the particular indirect
cost pool is of the distribution base identified
.1
A-122:3
with t~ I pool
4. Direct alloeotion method.
a. Some nonprofil organizations. treat all
costs as direct costs expect general
administration end general expenses. These
organizations generally separate their costs
into thre basic categories; (i) General
administration and general expenses, (ii)
lund raising. and (iii) other directlunclions
(including projects perlormed under Federal
awards). Joint costs. such as depreciation,
rentRI costs. operation and maintenance of
lacilities. telephone expenses, and the like
are proraled indivisually as direct cost to
each category and to each award, or other
activity using a base most appropriate to the
particular cost being prorated.
b, This method is acceptable provided each
joint co.st is prorated using a base which
Ilccurnlelv mensures the benelit~ provided to
ench nW';1'l1 or other IIcllvll\'. TI", hlln"n 1I"",t
be established in accordan~e with resonable
criteria. and be supported by current duta.
This method is compatible with the
Standards of Accounting and Financial
Reporting lor Voluntary Health and WeUare
Organizations issued jointly by the National
Health Council, Inc.. the National Assembly
of Volunlary Heullh and Social Welfare
Organizations, and the Uniled Way of
America.
c. Und..:r this method, indirect costs consist
eclusively of gelleral administration and
gcneral expenses, In all other respects, the
orgunization's indirect cost ratess shal be
computed in the same manner as that
described in paragraph D.Z above.
5: Special indirect cost rates. In some
instances, a single indirect cost rale lor all .
activities of an organization or for each major
lunction 01 the organiza tion ay not be
appropriate. since it would not lake into
account those differentlactors which may
substantially affect the indirect costs
applicable 10 a particular segment of work.
For this purpose. a particular segment of
,,"ork. For this purpose, a particular segment
of wOlk may be that performed under a single
award or it mav consist of work under a
group of awards performed in a common
environment. the factor. may inClude the
physical location of the work. the lever of
Administrativc support required. the nature of
the lacilities or order resources employed, the
scientific disciplines or technical skills
involved, the organizational arrangements
used, or any combination thereof. VVhen a
purticular segment of work is perlormed in an
environmenl which appears 10 generate a
significantly dirferentlevel of indirect costs,
provisions should be made lor a separate
indircct cost pool applicable to such work.
The separate indirect cost pool should be
dcveloped during the course of the regular
nlloca lion process. and the separa Ie indirect
cost rale resulling therefrom should be used
provided it is dctermined that (i) the rate
dillers significantly from that which would
have been obtained under paragruph D.Z. 3,
and 4 above. and Iii) the volume of work to
.....hich the rute would apply is material.
E. Negotiation alld Approval of Indirect Cost
noleS.
~
"
I
Office of Management and Budget Circular A-122 (6/27/80)
1. Definitions. As used in this section, the
following terms have the meanings set forth
below:
a. "Cognizant agency" means the Federal
agency responsible for negotiating and
approving indirect cost rales for a nonprofil
organization on behalf of all Federal
agencir.s.
b. "Predetermined rote" means an indirect
cost rate, applicable to a spccificd current or
future period, usually the organization's fifical
vear. The rate is based on an estimate of the
~oSls to be incurrcd during thc pcriod. A
predetermined ratc is not Rubjectto
adjustment.
c. "Fixed rate" mcalls on indirect cost rate
which has the sumc characleristic~ as a
predetermined rate, excepl thai the difference
between the estimated cosls and the aclual
cosls of the period covered by the rilte is
carried forward as on adjustment to the rale
computalion of a subsequent period.
d. "Final rate" means an indircct C<ls\ rate
applicable to a spccificd post pcriod which is
bascd on the actual costs of the period. A
final ralc is not subject to adjustment.
e. "Provisional ra te" or billing ra te mcans a
temporary indircct cost rale applicable to a
specified period which is used for funding,
inlerim reimbursement, and reporting imlirect
costs on awards pending the establishmr.nt of
a ra te for the period.
r. "Indirect cost proposal" means the
documentation prepared by an organization
to aubstantiate its claim for the
reimbursement of indirect cosls. This
propcsal provides the basis for thc review
and negotiation leading 10 the establishment
of an organization's indircct cost rate.
g. "Cost objective" means a function,
organizational subdivision, contract, grant, or
othcr work unit for which cost data are
desired and for which provision is made to
accumulate and measure the cost of
processes, projects, jobs and capitalized
projects.
2. Negotiation and appro 1'01 of rotes.
a. Unless differenl arrangements arc
agreed \0 by the agencies concerned, the
Federal '3groncy wit.h Ihe largest dollar value
of awards with an organization will be
designate:! as the cognizant agency for the
negotiation and approval of indirect cost
rates and, where necessarv, other rates such
as fringe benefit and computer charge-out
rates. Once an agency is assigned cognizance
for a particular nonprofit organiza tion, the
assignment will not be changed unless there
is a major long-term shift in the dollar volume
of the Federal awards to the organization. All
concerned Federal agencies shall be given the
opportunity to participate in the negotiallon
process, but after a rate has been agreed
upon it will be accepted by all Fcderal
agencies. When a Federal agency has reason
to believe that special operating factors
effecting its awards necessitate special
indirect cost ra tes in accordance wi tn
paragraph D.5 above, it will, prior to the time
the rates are negotiated, notify the cognizant
agency.
b. A nonprofit organization which has not
p~eviously established an indirect cost rate
with a Federal agency shall after the
c~ganization is advised that an award will be
made and, in no event, later than three
months after the effective dute of the award.
c. Organizations that have previously
established indirect cost rates must submit a
new indirect cost proposal to the cognizant
agency within six months after the dose of
each fiscal year.
d. A predetermined rate may be negotiated
for use on awards whcre there is reasonable
assurance, based on past expericnce and
reliJble projection of the o~gani2.ation's costs,
that the rate is not likely to exceed 0 rale
ba~ed on the organization's actual costs.
e. Fixed rates may be negotiated where
predetermined rail'S are not considered
appropriate. A fixed rate, however, shall not
be negotia ted if (i) all or a subslantial portion
of the organization's awards are expected 10
expire before the carry.forward adjustmcnl
can be made; (ii) the mix of Government and
non.government work at the organiz.alion is
too erratic to pcrmit an cquitable carry.
forward adjustment: or (iii) the organization's
operations Ouctuale significantly from year to
year.
r. Provisional and final rates shall be
negotiated .where neither predetermined nor
fixed ra tes are appropria te.
g. The resulls of each negotiation shall be
formalized in a written agreemcnt betwecn
the cognizant agency and the nonprofit
organization. Tha cognizant agency shall
distribute copies of Ihe agreement to all
concerned Federal agcncies,
h. If a dispute arises in a negotiation of an
indirect cost rate between the cognizant
agency and the nonprofit organization, the
dispute shall be resolved in accordance with
the appeals procedures of the cognizant
agency.
i. To the extent that problems ure
encountcred among the Federal agencies in
connection with the negotiation and approval
process. the Office of Management and
Budget will lead assistance as required to
resolve soch problems in a timel~' manner.
[Circular No. A-1Z2]
Attachment B
Selected Items of Cost
Table of Contents
1. Advertising costs
2. Bad debts
3. Bid ami proposal costs (reserved)
4. Bonding costs
5. Communication costs
6. Compensalion for personal services
7. Contingency provisions
fl. Contributions
G. Dcprtciatlon and use alloy."/mces
10. OQnations
11. Employee mnrale. health and 'welfare
costs and credits
lZ. Enler~8inmcnt cosls
1:3. Eq\lipm~nt and other capilal axpenditure~
H. Fines and penalties .
15. Fringe benefits
Hi. Idle 'facilities and idle capacity
17. Indcpendent rescarch and development
{resen'ed}
1!l.lnsurance and indemnification
19. lnlere~t. fund-raising, and investment
managem!:nl costs
20. Lnbor rel~lio:ls c.%ls
I
A-122:4
21. L('s~('s on othe~ a....'nrd;
Z~. Maintenance a:>d r<:pllir costs
23. M:.teriAls /Vld supplie.
24. Mcetin~s. conferences
2.;. Mem[,e~ships, subscriptions, "lid
prcfcssional activity custs
ZOo Organization costs
27. O,'ertirne. extra.pu)' shifl, and mullishil1
premiums
Z6. Page charges in professionul journalll
:9. Participant support cosls
3'). Palent cosls
31. Pension pluns
32. Plant security costs
33, Prcaward costs
34. Professionlll service costs
36. Profits and 10llses on disposition of
deprcciaule property or other capilal
IIsscts
30. Public ir'iformation sen'ice costs
3i. Publication IInd printing costs
jO. Rearrangement and nlleration costs
3!l. Recom'ersion costs
40. Recruiting costs
41. Relocalion costs
4Z. Rent.al costs
43. Royalties and olher costs for Ul;c of
patents and cop)'rights
41. Severance pay
45. Specializcd service facilities
'If). Taxes
4i. Termination costs
46. Training and education costs
4!l. Transportation costs
50. Tra\"el costs
[Circular No. A-12.2]
AlIachment B
Selected Ilems of Cost
Paragraphs 1 through 50 provide principles
to be applied in establishing the allowubility
of certain items of cost. These principles
apply whether a cost is trea ted as direcl or
indirect. Failure to mention a particular item
of cost is not intended to imply that it is
unallnwable: rather detcrmination os to
nllowabilitv in each caRe should be based on
the treatnl~nt or principles provided for
similar or related items of cost.
1. Adl'ertising coots. . "I
R. Ad',ertising cosls mean the costs of. .
media 8e.rvices and a8sociated cosls. Media
advertising includes magazines. newopapJrs,
radio and television programs, direct maiL
exhibits. and the like.
b. The only advertising costs allowable are
those which are 801ely for [i) the rocrullmenl
of por80nnd when considered in conjunction
,with 011 other recruitment C08tS, 05 set forlb
in paragraph 40;.(ii) the procurement of goods
and services: (iii) the diaposal of Burplus
materials acquired in the performance of the
Ilward except when Ol/lanizations are
reimbursed for disposals at a predetermined
amount in accordance with Altechmenl N of
OMU Circular A-110: or (h') specific
.requirements of the award.
2o. Bod dobts. Bad -oebts. including 1000ses
I whether aclual or esli~ated) arising from
uncollectible acconnts llnd other claims,
related collection costs, and relalod legal
cosl~. arc unallowable,
3. Bid and proposal costs. [reserved)
4. Banding casts.
"
.'
\
I
Office of Management and Budget Circular A-122 (6/27/80)
e. ()oncling co~ts arise wh~n lhe .
Govcrnmcnt reGuire~.a~~urance agall1Rt
{il1tlndat loss to il.~cll or others hy reason o{
the ar.t or default o{ the organizalion. ~cy
uris" o\so in instances where t~e organlzallon
rp.quirtls similar aRRuranoe. Includcd are such
honds as bid. performance. payment.. .
atlntnr.c parmenl. InfringemenL and fldehly
bunds.
b. Custs of bonding required pur~uantlo
the tern's of the award Ill'/' allowllole.
c. Coslsof bonding required by the
org~ni7.i1lion in the general conduct of its
upcral;ons are allowable to the e"lcotthat
such bonding Is in accordance with sound
business prnctice and the rates Ilnd premiums
Me reasor-able under the circumstances.
5. Communicotion exu.ts. Costs incurred for
telephone se",,'icea. local and long distance
telephone calls. telegrams, radio!lranu.
postage and toe Ii~e, are allowable.
6. Compensation for personal scn'ices.
a. Definition. Compensation {or penonnl
services includes ...\1 compensation paid
currenlly or accrued by the organil:Btion for
services of employees rer.dered during the
period of the award (except as otherwise
provided in paragraph g. below). It includes,
but is nollimited to. aalaries. woges,
director's and executive committee member's
fees. incenth'e awards. fringe beneCiUl.
pension plan coaUl. allowances for olI-site
p;ty, incen:ive pay. location allowances.
hcrdship pay, and cosl of Ii ving difierent1als.
b. A/Jowability. Exccptas othcrwiBe
s;>ecifically provided in this para!l'"aph the
costs of such compeosation are allowable to
the extent that:
(1) Total compensation lo.individual
employees is reasonable for the sen'ices
rendered and conforms to toe established
policy of the organil:8 tion consistently
applied to both Government and non-
Government activities: and
(2) Chargcs to awards whether treated as
direct or indirect costs are dete.mint:d and
supported a\; required in thill paragraph.
c. Reasonableness.
(1) When the organization is predominantly
engaged in activities other than those
sponsored by the Government. compensation
for employees on Govarnment-sponsored
work will be considered reBsonable to the
extent thatH is consistent with that paid for
similar work in the organintio'n's other
activilies.
(2) When the otganhalion is predominantly
engaged in Governmenl.sponsored activities
and in cases where the kind of employees
required for the Government Bctiviliesare
not found in the organizatioo's other
activities, compensation for employees on
Government-sponsored work will be
considered reasonable .to the extent thai il is
comparable to that paid for similar work in
the labor markets in which the organization
competes for the kind of employecsinvolved.
d. Special considerations in determining
a/Jowability. Certain conditions require
special consideration and possible limitations
in determining costs undcr Federal awards
where amounts or types of compensotion
appear unreasonable. ^mong such conditions
ore the (ollowing:
(1) Compensution to mcmbers of nonprofit
oq:aniz;;tions, trustees. direclors. Ruor.iales.
officers, or the immedinte flllllilies thereoL
Determination should he made thnt such
compensalion is rcasonnble for the actuol
person,.1 servir.es rendered ruther than a
distribution of esrnings in excess of costs.
(2) ^ny change in nn ofllnlll7.alion's
compensation policy rc~u\ling in a
substantial increase in the organil:ntion's
level of compensetion. particularly whcn il
wos concurrent with an increase in the rs tio
of Govcrnment owards to other aClivilies of
the organization or any chnnge in the
trentmenl uf allowal:iility of specific Iypes of
compensation due to changes in Government
policy.
e. UnalJoll'obJe costs. Costs ,,'hich are
unallowable under other paragraphs of this
^ltachmenl shall not be allowable under this
poragraph solely on tlle basis that they
constilulc personal compensation.
f. Fringe benefits.
(1) Fringe benefils in Ihe fOnD of regular
compensation paid to employees during
periods of autho.il:ed absences from Ihe job.
such as vacation leave. sick leave. military
leave, and Ihe like, are allowable provided
such costs are absorbed by all organization
activities in proportion 10 the rclative amount
of time or effort actually de~'oted to each.
(2) Fringe benefits in the form of employcr
contributions or expenses for social securilY,
employee insurance, workmen's
compensation insurance. pension plan costs
(see paragraph g. below). and the likc. are
allowable provided such benefits are granted
in accordance with eSlablished wrillen
organil:ation policies. Such benefits whether
treated as indirect costs or liS direct costs,
shall be distributed to particular awards and
other activities in a manner consistent with
the pa II ern of beneri Ul accruing 10 the
individuals or group of employees whose
salaries and wages are chargeable to such
awards and other ac(ivities.
(3)(8) Provisions for a resen'e under a self-
inSurance program for unemploymenl
compensation or workmen's compensation
ere allowable to Ihe extentlhal the
provisions represent rcasonable estimates of
the liabilities for such compensation. and tho
types of coverage. extent of coverage. and
rates and premiums would have becn
allowable had insurance been purchased to
cover the risks. However. provisions for self-
insured liabilities which do not become
payable for more than one year alter 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 or. employees or
fOmler employees for unemployment
1:ompensalion or workmen's compansation,
such.payments are allowable in the year of
-payment with the prior approval of the
awarding agency provided they are allocated
toal) activities of the organil:a tion.
(4) Costs of insurance on the livcs of
trustees, officers. or other employees holding
positions of similar responsibility are
ollowable only to the extent that the
insuronce represents additional
compensation. The costs of such insuronce
when the organil:alion is named as.
I
A-122:5
beneficiary are unallowable.
g. Pellsion ploll costs. .
(1) Costs of the orgallil:otion's pension plan
which are incurred in accordance wllh the
established policies or the organization are
nllowable. provided:
(a) Such pulicies meet the lest of
reasonableness:
(b) The methods of cost allocation are not
discriminatory; .
(c) The cost assigned 10 each fiscal year is
determined in occordance with generolly
occepted accounling principles as rr~~LI"iberl
in Accounting Principles Board OpinIOn .No. 6
issued by the American Institule of Certified
Public Accountants: and
(d) The costs assigned to a given fis.co~ year
cre funded for all plan participants WIthin SIX
months aiter the end of thaI yeor. However,
increases to normal and past sen.jce pension
costs CRUSI'd by a delay in funding the
sctuarialliabilily beyond 30 days alter each
qu;trter of the year to which such costs are
assignable are unallowable.
(2) Pension plan termination insurance
premiums paid pursuant to the Employee
Retirement Income Security Act of 1974 (Pub.
L. 9~OO) are allowable. Late payment
chilrges on such premiums are unallowable.
(3) Excise taxes on accumulated funding
deficiencies and other penalties imposed
under the Employee Retirementlncome
Security Act are unallowable.
h. Incentive compensation. Incentive
compensation to employees based on cost
reduction, or efficient performance.
suggestion awards. safety awards, etc.. are
allowable to the extent that the overall
compensation is determined to be reasonable
and such costs nre paid or accrued pursuant
to an agreemenl entered into in good faith
between the organization and the employees
before the services were rendered, or
pursuant to an established plan followed by
the organization so.consistently as to imply,
in effect. an agreement to make sllch
payment. .' .
1. Overtime. extra pay shift, and multJshlft
premiums. See paragraph 27.
j. Severance pay. See paragraph 44..
k. Training and education oo~ts. See
paragraph 46.. .'
1. Support of salaries and wages. -
(1) Charges to awards for salaries, and
wages. whether treated as direct costs or
indirect cosls. will be bosed on documented
payrolls approved by a responsible official(s)
of the organizalion. The distribution of
salaries and wagcs 10 awards must be
supported by personnel activity reports as
prescribed in subparagraph (2) below. except
when a substitute system has been approved
in writing by the the cognizant agency. (See
poragrcph E.2 of Allachment A)
(2) Reports renecting the distribution of
activity of each employee must be
maintained for all staff members
(professionals and nonprofessionals) whose
compensation is charged, in whole or in part.
directly 10 awards. In addition. in order to
suppo;t the allocRtion of indirect costs, such
reports must also be maintained for other
employees whose work involves two or more
funcilons or octivities if a distribution of lheir
compen~otion between such {unclions or
activities jg needed in the determination of
,"r
I
_I
Office of Management and Budget Circular A-122 (6/27/80)
theorganization's indirect cost rale(s) (e.g.,
an employee engagcd part-time in indirect
cost activities and part.lime in a direct
function). Reports maintained by nonprofit
organizations to satisfy these requiremcnts
must meet the foHowing slandards:
(a) The rcports must reflect an a/ler.lhe-
lael dctermination of the actual activity of
each employee. Dudgel estimates (i.e..
estimates delermined before the services are
performed) do not qualify as support for
chargcs to awards.
(b) Euch report must account for the tolal
activity for which employees arc
cornpensa ted and which is required in
fulfillmenl of their obligations to the
organization.
(c) The reports must be signed by the
individual employee, or by a responsible
supervisory official having firsl hand
knowledge of the activities performed by the
employee, that the distribution of activity
represents a reasonable estimate of the
actual work perfo:med by the employee
during the periods covered by the reports.
(d) The reports must be prepared at least
monthly end must coincide with one or more
pay periods.
(3) Charges for the salaries and wages of
nonprofessional employees. in addilion to the
'supporting documentation described in
subparagraphs (1) and (2) above, must also
be supported by records indica ting the total
number of hours worked each day
maintained in confor:nonce with Department
of Labor regulations implementing the Fair
Labor Standards Act [29 CFR Part 516). For
this purpose. the term "nonprofessional
employee" shaH have the same meaning as
"nonexempt employee," under the Fair Labor
Slandards Act.
(4) Salaries and wages oi employees used
in_meeting cost shoring or matching
requirements on cwards must be supported in
the same manner as salaries and wages
claimed for reimbursement from awarding
agencies.
7. Canlingeney provisions. Conlributions to
a contingency reserve or any similar
provision made for events the occurrence of
v;hich cannot be foretold with certaintv as to
limp.. inlensity. or with an assurance or their
r.a~pel1ing. are unaHowabJe. The term
"contingency reserve" excludes self-
insurance reserves (~ee paragraph 6.f.[3) and
16.a.(2)[d)): pension funds (see paragraph
6.(g)): and reserves for normal severance pay
(see paragraph 44.(b)(1).
6. ConlriblJlioJls. Contributions and
dona lions by the organiza tion to olhers are
unaliowable.
9. Depreciaiion and use allowances.
a. Compensation for the use of buildings,
other capital improvements, and equipment
(:~ rand may he made through use
?Ilo...;an:::es or depreciation. However. except
as prfJvidcd in paragraph r. below a
comui;1ation of the two methods ma" nol be
J:sed in conneclion witl: a single dass of
fjxed as.els [e.g.. btlildings. office equipment
cUlllputer equipment. etc.).
b. The computation of use allov.;ances or
';"pr ciation shall be based on the
~l.qlJ silion cosl of the assels involved. The
ur.au silion cosl of an asset co~aled to the
or~anizotion by a trird party shall be Its fair
m~rket \'alue at the time of the donation.
c. The computalion of use allowar.ccs or
deprecialion will exclude.
(1) The cosl of land;
(2) Any portion of the cost of buildings and
equipment borne by or donated by the
Federal Government irrespective of where
title was oriJ:inally vested or where it
presently resides; and
(3) Any portion of the cost of buildings and
equipment CO!llributed by or for lhe
organizatiun in satisfaction of a statutory
matching retirement
d. Where the use allowonce method i8
followed, the use allowonce for buildings and
improvement (including land improvements
such as p'l\'ed ;'larking areas. fences, and
sidewalks) will be computed at an annual
rale not excceding two percent of ocquisition
cost. The use allowance lor equipmcnt will
be computed at an onnual rate not exceedir.g
six and two-thirds percent of ocquisition cosl.
When the use allowance methodiR used for
buildings. the entire building must be treated
05 a single asset; the building's components
(e.g. plumbing system, 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 attached 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, laboratorv benches bolted to tho
fluor. dishwashers:carpeting, etc.). Such
equipment will be considered as not being
permanently fixed 10 the building if it can be
removed without the need for costly or
extensive altera tions or repuirs to the
building or the equipment. Equipment that
meets these cri leria will be subject to the six
and two-thirds percent equipment use
ollowance limitation,
e. Where depreciation method is followed,
the period of useful service (useful life)
established in each case for usable capila)
essets must take into consideration such
factors as type of construction. nature of the
equipment used. technological developmenls
in the particular program area. and the
renewal and replacement policies followed
for the the individual Hems or classes of
assets involved. The method of depreciation
used to assign the cost of an I\s~et [or group
of assets) to accounting periods shall reDect
the pattern of consumption of the assel
during its uselullife.ln the absence of clear
evidence indicating thatlhe expectr:d
consu:nplion of the asset will be significantly
greater or lesser in the early portions of its
u~efullife than in the later portions. the
straiilht-line method shall be presumed to be
the appropriate method. Depreciation
rncl.hods once used shall not be changed
unless approved in advance by the cognizanl
Feceral agenc)'. When the depreciation
mcthod is introduced for application to asseLs
previously subject to a use allowonce. the
combin<<tion of use aH'Owances and
ncprecial.on applic..ble to such assets must
not excecd the total acquisition cost of the
..s~ets. "'"'hen the derreci..l1on method is used
fnr huildin~!;. II buildil1~'s shell may ue
A-122:6
~l'greg..\ed from eAch building component
(c.g.. plumbing system. heating. and air
condilioning systcm. etc.) and eAch item
depreciated over its estima'ed useful life: or
the enlire building (i.e.. the shell and all
components) may bc treated as a single asset
and depreciated over a single useful life.
r. When the depreciation method is used
for A particular class of assets, no
depreciation may be allowed on any auch
asocls that, under purasraph e, abovc, would
be viewed as fully depreciatcd. However, 0
reasonable usc allowonce may be negolioted
for such assets if warranted after laking into
consideration the amount of depreciotion
previously chargcd to the Government. the
estimated uscfullife rcmaining at lime of
negotiation. the effect of any increased
maintenance charges or decreosed efficiency
due 10 age, and ony olher factors pertincnt to
.[he utilizalion of the assel for the purpose
contcmpla ted.
g. Charges for use IIllowance~ or
deprecia tion must be supported by odequa Ie
property records and physical invcntories
musl be taken at least once every two years
(0 statiltical sampling basis is acceptoble) 10
ensure that assets exist and are usable ond
needed. When the depreciation method is
fullowed, adequa te de?recia lion records
indicating the amount of deprecin.ion taken
cach pcriod must also be maintained.
10. Dono/ions
a. SCrl'ices received.
(1) Dunated or volunteer services may be
fnrn!shed to an organization by professional
a!'ld technical personnel. consultants, and
other skilled and unskilled labor. The value
of these services is nol reimbursable eithcr as
o direct or indirect cosl.
(2] The value of donated services utilized
in the performance of a dircct cost activi ty
shall be cnnsidered in the determinati'm of
the organization's indire'ct cost ratels) and,
accordingly. shall be alloca ted a
l'roporlioo~te share of applicable indirect
costs when the following circLlmstances exist:
(a) The ag:;~egate value of the services is
n,..lcrial;
[b) The services arc ~upported b~l~
significnnt amounL of Ii,e i~lirect cosls. - .
incurred by the organizalion:
Ic) The direct cost activity is not pursued
primarily for the benefit of the Federal
Guv(,~nment.
(J) In those instances .....here there is no
basis fnr determining the fair market value of
the serviccs rendered, thc recipient and the
cognizont agency shall negotiale an
appropriaLe aiioculion of indirect cosl to thc
ser,'ices.
(4) Where don..ted ~crvices dircctly benefit
a ;:rnjec\ supported by an a ,,'ard, the ind;rect
costs allocated to the services ",ill be
con$idcred as a part of the lotal costs of the
project. Such indircct costs may be
reimbursed under the award or used to meet
cusl sharing or malching requirements.
(5) The value of t~e donated servicc:s may
LW used to mccl cost sharing or matching
requircments under conditions described in
I'.!l..chment E. OMB Circular i'io. A-110.
\\'hcrc donated services ure trented as
indirect costs. indirecI co~t ra les will
s"paralc the value of the donatiuns 50 lhnt
'f.
I
Office of Management and Budget Circular A-122 (6/27/80)
reimbursement will not be made.
(6) Fair market valu~ of donated services
shall be computed as follows:
(a) Ilates for volunteer services. Rates for
voluntel:rs shall be consistent with those
regular ra tes paid for similar work in other
activities of the organization. In casee where
the kinds of skills involved are not found in
the other activities of the organization. the
rates used shall be coneistent with those paid
for similar work in the labor market in which
the organiza tion competee for euch skills.
(b) Scn'ices donated by other
organizations. When an employer donates
the services of an employee, these services
shall be valued at the employee'e regular rate
of pay (exclusive of fringe benefite and
indirect costs) provided the eervicee are in
the same skill for which the employee is
normally paid. If the eervices are not in the
same skill for which the employee is nonnally
paid. fair market value shall be computed in
accordance with subparagraph (a) above.
b. Goods and space.
ll) Donated goods; Le.. expendable
personal property/eupplies. and donated use
of space may be furnished to an organization.
The value of the goods and space is not
reimbursable either as a direct or indirect
cost.
(2) The value of the donations may be used
to meet cost sharing or matching share.
requirements under the conditions described
In Attachment E. OMB Circular No. A-ll0.
The value of the donatione shall be
determined lo accordance with AlIachment
E. Where donations are treated as indirect
costs, indirect cost rates will separate th~
value of the donations so that reimbursement
will not be made.
11. Employee morole, health. and welfare,
costs and credits. The costs of house
publications. health or first-aid clinics, andl
or infirmaries. recreational activities,
employees' cOllnseliog services. and other
expenses incurred in accordance with the
organizalion's established practice or custom
for the improvement of working conditions,
employer-employee rda tions. employee
morale, and employee performance are
allowable, Such costs will be equitably
apportion~d to all activities of the
organization. Income generated from anv of
these activities will be credited to the c~st
, thereof unless such income has been
irrevocably set over to employe~ weUare
organiza tions.
12. Entertainment costs, Costs of
amusement, diversion. social activities,
ceremonials. and costs relating thereto. sucl.
as meal~'. lodging. rentals. transportation, and
gratuilie~ arc unallowable (but see
p"rngraphs 11 and 25).
13, Equipment ond ather copitol
e.\penditures.
a. As used in this parngraph. the following
lcro'.;l.havclhe.mll:Jninm; SS.Ugrlh below:
[1) "Equipment" means an article of
non?xpcndable tangible personal property
ha,'mg a uscfullife of more than two years
a~d an acquisition cost of $500 or mo;e per
unIt. An organization may use ils own
definition provided lhal ii alleasl includes all
~C'Olexpenda ble tangible personal properly as
llefmed herein.
(2J "Acqui!ition cost" means the net
invoice unit price oC an item of equipment.
including the cost of any modifications,
attachments. accessories. or auxilitlry
apparatus necessary to make it usable for the
purpose for which it is acquired. Ancillary
charges. such as taxes, duty, protective in.
transit insurance, freight. and installation
shall be included in or excluded from
acquisition cost in accordance with the
organization's regular written accounting
practiceR.
(3) "Special purpose equiplolent" means
equipment which is usable only for research,
medical. scientific. or technical activities.
Examples of special purpoee equipment
include micr05copes, x-ray machines, surgical
instruments, and spectrometers.
(4) "General purpose equipment" means
equipment which is usable for other thlln
research. medical. scientific. or technical
activities, whether or not special
modifications are needed to make them
euitable for a particular purpose. Examplee of
general purpose equipment include office
equipment and furnishings, air conditioning
equipment. reproduction nnd printing
equipment. motor vehicles. and automatic
data processing equipment.
b. (1) Capital expenditures for general
purpose equipment are unallowable as a
direct cost except with the prior approval of
the awarding agency.
[2) Capital expenditures for special purpose
equipment are allowable as direct costs
providad that items with a unit cost of 5>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. b\;i1dings, 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. Howe\'er. see paragraph 9 for
allowabilitv of use allowances or
depreciatio"n on buildings. capital
improvements, and equipment. Also. see
paragraph 42 for allowability of rental costs
for land. buildings, and equipment.
14. Fines and penalties. Costs of fines and
penalties resulting from violations of. or
failure of the organization to comply with
Federal. State. and local laws and rel;ulations
are unallowable except when incurred as a
result of compliance with specific provisions
of an award or instructions in writing from
the awarding agency. .
15. Fringe benefits. See paragraph 6. r.
16. Idle facilities and idle capacity.
a. As used in this paragraph the following
terms have the meanings set forth beluw:
(1) "Facilities" mcans land and buildings or
an)' po:lion thereof. equipment individually
or collectively. or any other fangible capita-I
asset. wherever located. and whether owned
or lensed by Ihe organiza tion.
(2) "Idle facilities" means compJ~tel\'
UJ1\ls.cd facilities Iha: arc excess \0 the'
organi2.a tion's current necds.
1:1) "Idle opacilY" means the un\l~ed
.1
A-122:7
cnpacity of partially used facilities. !l is tbe
difference betweeD tnat which 8 facility
could achieve under roo per cent opera ting
time on a one.shift basis less operating
interruptions resulting from time lost for
repHirs. setups. unsHt:sfaclol1' materials. ana
other normal delays. and the extent to which
the facility was actually u,ed lo meet
demands during the accounting 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 facilily
involved.
(4) "Costs of idle facilities or idle capacity"
menns costs such IUl maintenance, repair,
housing. renl. and other [elated cosL<l; e.g..
property taxes. insurance. and depreciation
or use ollowances.
b. The costs of idlc fncilibies are
unilllo,yable except to the extent thill:
(1) They are unnecesftary to meet
fluctuations in wurkload; or
[2) Although not necessnry \0 meet
flllcluations in workload, they were
necessary when acquired and arc now idle
because of changes in prugram requirements,
efforts to achieve morc economical
opcration~. reorgani:t.ation, termination. or
othcl' causes which could not have been
rensonably foreseen. Under the exception
sta ted in this subparagraph. costs of idle
facilitics arc allowable for a reasonable
Jleriod of time. ordinarily not to exceed one
year. depending upon the initio tive taken to
use. lease. or dispose of such facilities (but
see paragrnphs 47.b. and d.).
c. The costs of idle capacity are normal
cosls of doing business and ore a factor in the
normal fluctuations of usage or indirect cost
rates from period to period. Such costs are
allowable. provided the capacity is
reasonably anticipated 10 be necessary or
wa~ originally reasonable and is sebjectlo
reductivn or elimination by subletting.
renting. or sale, in accordance with sound
business. economics, or security practices.
Widesprend idle capacity throughout an
entire facilily or among a group of assets
having substantially the same func;tion mnY
be idk facilities. .
17. hd"p~ndcnt rescU(Ch and dClvf!lopmcnt
lReserv~d\. .
18. Insurance and indemnification. 1
a. Insurance includes insurance which the
organiza tion is required to carry, or which is
approved. under the terms of Ihe .:ward and
any other insurance which the organization
mainlains in connection with the general
condecl of its operations. This para~raph
dees not apply to insurance which r-epresents
fringe bent'fits for emrloyees (zee paragraph
6,f. and 6.g,(2)).
[1) Costs of in;~lr3nce r~.quired or
approved. and maintained. pursuJnt to the
award are allowable.
(~) Costs of other ins'Jrance mHintained by
the org;::nization in conncction with the .
general conduct of ils ope"ations are
nlluwable subject to the following limita lions.
(a) Types and extent of coverage shall be
in accordance with sound business practice
and the r~tes and premiums shall be
reasonable under the cir::umstances.
(b) Cn~t3 allowed for business inlerruption
or other similar insurance shall be limited to
"
~
Office of Management and Budget Circular A-122 (6/27/80)
exclude coverage of managcm~nt fce~.
Ie) Costs of insurance or of any prC),':~iGn~
fDr a reserve cover:ng the risk of luss or
d~IllQgc 10 Government property are
allowable only In !he extent that the
or~~niza:i!ln i~ Iinble for such I()s~ or .;;)maC!'~.
id) Provisions for e resr:rve under a ,clf-
illS'Jrar,ce prr.gT"am are allowablr. to the
extent thattrpe~ of coverage. exl~n! of
covera'ge, rn!e,. ahd prr.miums ",oult! hilVp.
been allowed had jl'.su~1\ncc been purt;hased
to cov~r the risks. Howr.ver. proviilL:lO for
known or reasonablv estimtl'ed sclf-i:1~ured
liabilities, which do 'noi become payabie for
more th)n one year alter Ihe provisior. is
made shall I.Ot exceed Ihe pre~ent value of
the liability.
(e) Costs of insllrance on the lives of
trustees. officers, or othr.r e:nployer.s holding
positions of similar re~pensiLj!ities a;e
allo.,vable only 10 the extent L"ctlhe
insurance represents additional
compensation (see pnragrAph 61. The Cllsl of
such insuranc:e when Ihe o~snizotion is
identified as the beneficiary is unallllw;;ble.
(3) Actuallosse~ which could ho\'e been
covered by permir.nible inslJra:1ce [throu;:h
the purchase of insuran::e or a self-insurance
program) are unallowable unless expressly
pro\;ded for in the awarrl, except:
(a) Costs incurred because of losses not
covered under nominel deductible insurance
coverage provided in kPcping with sou:1d
business practice are allowable.
[b) Minor losses not covered by insurance,
such as spoilage, breakag~. and
disappearance of supplies, which occur in the
ordinary course of op~rDtions, are allowable.
b. Indemnifica tion includes securing the
organization against liabilities to third
persons Bnd any other loss or damag~, not
compensated by inSll/"ll1lCe or otherwise. The
Government is obligated to indemnify the
organization only to 'he extent expressly
provided in the award.
19; Intere:;t, fund reising. alld int'estmellt
mar;agement costs.
B. Costs incurred for intcrest on borrowed
capital or Il'mporDry use of encowment
fund~, howevcr represented. Bre una Ilowa ble.
b. Costs of organi1.ed fund rai~ing,
including financial campaigns. endowment
drives. solicita lion of gifts and beGuests. and
similar expenses incurred ~olr\y to raise
capital or obtain contributions are
unallowable.
c. Costs of investment counsel Dnd slaff
and similar expenses incurred saleh' to
enhance incomo:l lrum lnvcst:nenls ;re
unallowablc.
d. Fund raising and investment Dctivitic5
~hall be DlIocated an appropriate share of
indirect costs under the conditio:1s described
in paragraph B of Attachment A.
20. Lobor relations cas/s. Costs incurred in
maintaining siJlisfactcry re:ations be\.....ee:1
the organiza tion and its employees,illl:!uding
costs of labor management r.oml:1illees,
employee publications. and othr.r related
activities are allowable.
21. Losses on other awards. Anv excess of
costs over income on any award :"s
u~all?wable 8S a cost of any other award.
Tnts mcludes. but is not limited to, the
organization's contributed portion by re/l~on
of CNt sharins Hgrcements or any
underrecovcries through ne~otiatjon of lump
sums Inr. or ceilings I'n, indirect costs.
:2. Main!encnce and repair costs. Cn~ts
incurn:d lor necr:~sary maintenance. rrpair.
or upke~p of bllilding~ anj eqlli;>mclII
(incl.aling Gov~mme!11 prnl'erty unlr.5s
o:her\'Ji~e provided for) which neither add to
the l>crmanenl value of thl' properly nor
appreciably pn::long its inte:1ded life, Lut
kc~p it in an eff'cienl operRli:lg conrlilic,". are
allov;ahle. Costs incurred for i~prm'('mcnts
whic.h add to the permanent value of tne
builC:ings and e'luipme:lt or appreciauly
prolong their inte:1ded life sh611 Le treated as
CiJi'ital expenditures (see ~Rr:lgraph 13).
ZJ. MuterinJ.~ and sllpplie.~. The costs of
materials and s::pplies necessary 10 carry lIut
nn Award are al:owable. Such c:osts should be
Gharged atlheir actual prices aner deducting
all cash di~counts, trnde disc:ounls. rebates.
and allowances received uy th" Ol"!;ani;::llion.
Withdrawals from genel al stores or
stockrooms should be charged at cost under
an:,' recognized method of pricin:;
consistenlly applied. Incoming transportation
charges JnOY be a l>roper part of ITJuterial
cost. MaleriDls and supplies charged'as a
direct cost should include only the malC:'rials
and supplies actuallJ' used lor the
performance of the contract or granl. and due
credil should be given for any eT.cess
materiols or supplies retained, or returned to
vendors.
24. Meetings, conferences.
a. Costs associated with the conduct of
meelings. and conferences. and include lhe
cost of renting facilities, m~als. speakP.rs'
lees. and the like. But see poragraph 12.
Entertainment costs, an:! paragraph 29.
Participant supper! cests.
b. To the extentthot these costs are
identifiable with a partlGular cost objective.
thl'Y should be charged to that objective. (See
paragraph B. of Attachment A.) These costs
a~e allowable provided that they meet the
general tests of allo'Na ble. shown in
Attachment A te this Circular.
c. Costs of meetings ar.d conferences held
to conduct the general administration of the
organization are allowable.
25. Memberships. subscrIptions. and
professional activit\, costs.
a. Costs of the organization's membership
in civic. business. technical and professional
orl!anizations are allowable.
h. Costs of the organization's subscriptions
to civic. business. professional. and technical
periodicals are allowable.
c. Costs of attendance at meetings and
conlerences. sponsored by olhp.rs when the
primary purpose is the u;sscmination of
ted:nicnl information. arc 'lllownb!e. This
indlll':~s costs of meals. tra'ls;Jortatrcn. and
othe~ items incidental to sur.h attendAnce.
26. Organization costs. Expenditures. such
CIS incorporation fees, brokers' ie~s, fees to
promoters. organizers or management
consultants, attorneys. accountents. nr
Inve~lm'Jnt couns~IQrs. who:-ther or not
~n:IJloyres of the organiza tion. in connection
willt est'lbli~hmenl or reo;ganizBtion of an
or~Dn:zlltjon. arc unallowable except with
prior appruval of tlte awarding agency.
2i. Ol'rrtimc. extra.por slilf:. and
.I
A-122:8
mu/!i.<hi.fl /'1"( !,Iiunts. Premium~ lor o\crtinw.
nil ".pll)' shjfts. ami Inultishilt ....or\. arc
"l;o".al'!" llniy wi:1t lite prior "I'pro,.,d 01 i};e
u\Va~u:ng :,!!cncy !')ocrpl:
a. \'I'hell ll"ces~MY to cope with
cr.lC~gencies. such c~ those ,esulting Irun<
~'.c;,j.:,,'.,. nilt.,l al di~asl!'rs. breal.:downs of
("I"ipr:.~nt, or c'C(::lSi0nltl operati:'nal
l>:'ltlr!'~cl:s of" spllffldic nature.
h \\'hCll <:;:Jpioye'~s are perlorr'liof{ indin:c\
flll1cii'lIlR snch uS ,Il!ministratioll,
n."illlenancr., 01 nc.clJunting.
c. 10 ,hr p\!rformililce of lest~, laboratory
prllCl:Jores. ur uther simiiar opera lions ",hien
(Ire r.ni,(;i11101lS in n,lturc end cannol
re:lsoll?~i:.. ue interrupted or othcrwis'!
COI1\~I:~:!:'u.
d. Whl'n lowl'r cwerull cost tu the
(;o...('r~:nect will rr.sull.
20. l'o!:c c:hul11cs in proflJssionaJ journals.
Page cltarges lor professional journal
publications ore allowable as 0 nece~sary
parI of research costs, where:
". The reSIJUdl papers report work
SUI'PllrleJ l,y the Go\.ernmenl; ond
b. The c\;af,l::es arc levied impartially on all
rC~l:i1rlh FJpers published by the journat.
whelh'~r 0: no; by Government-~ponsored
aulhnrs.
29. f'arIidpnnt support cC'sts. Participant
support costs arc direct costs fo~ items such
DS stipcnd;; or subsistence allownnces. travel
llllo""anr.r~. /lnd registration Ices paid 10 or
un hehalf vf parlidpants or trainees (but not
employees) in connet;Iion with meetings,
cn"ferences, symposia. or training projects.
Th,,~e Gosls are allowable with the prior
i1pprov~1 01 the awarding agency.
30. rU!CI:t costs.
a. CGsts or (i) preparing disr.losures.
reports, and other documents required hy the
n,,"~,rd ;lIId of searching the art to the extend
neccssnry 10 make such disclosurcs. (ii)
preparing documents and any other patent
costs in connection with the filing and
pro~ecu:;oG 01 a United states pl.le:1t
applir.olio:>n where title or royalty-Iree license
is reqllitc-d uy the Government to be
CO:lVeyed io the Government, l'lnd liii) gcneral
eeuns~li:;g services relating 10 palehl.,and
copyright matter5, such as ~vir.e on palen)
and copyright laws. ~egulations. clauses, and
employee agrc-cments are allowable (but Sl'(~
pllr~graph 34).
b Cust of preparing disc1os1Jres. reports.
and olher documents and of searching the arl
10 the extent necessary to make di~r.losur('s.
if not required by the aWHrd, ue
unalluwable. Cosls in connection with (i)
filing and prosecuting lIny foreign patent
application, or (Ii) any United States patent
application. wherc the Hward docs nol
recl',ire conveyinil litle or a rOYDlty-frrc
lic.ense III the Go\'ernmenl. are unallowable
(a\so ;ec parilgraph 43).
31. Pension pions. See paragraph 6. g.
32. Plnnt sccL'rft.l' cas!s. Necessary
expenses incurrcd 10 comply with
Govcrnment security requirements or lor
facilities protection. including wages,
unifol ms, anc equipment 01 personnel are
ullowuble.
33. Prenl\'ord costs. PreawBrd co~ls are
tho~e int;urrr.d prior to the effrctive dole of
till' il,'.."rd directly pursuant to the
"
I
Office of Management and Budget Circular A-122 (6/27/80)
ncr.oliotion and in anticipatinn of the :,ward
wh,,," sut-h costs i$ nccessury to comrly wilh
:he proposed delivery schedule or period of
perform;,nce. Such cosls Are allowable only
lu ;he e:denl Ihat they would have been
..ilowuble if incurreo ofter the dote of lhe
~W()rd Bl\d only with the written approval r.f
the .tI,\',ardillg ngcn~y.
34. IJmfcssional sen'icc cos/s.
a. Cosls of profe~sional and consultanl
services renclereJ by persons who arc
r,,,.,,,llers of II particular professiun or possess
o sll~dal skill. anJ who arc not officers or
l'1"":;,iuyees of the orgdnization, Dre a!lowuble,
,;;bject 1.0 u, c. and d, of this pOiragraph when
rf~dS{l\;alJle in r'~lation.to the servi(f~s
rendered IInd when not contingent upon
rCl:overv of the costs from the Government.
b. In dct::rming the allowauility of r.osts in
a particular CClse, no single factor or any
special combination of factors is necessarily
determinutive. However, the following
factors are relevant:
(1) The nature and scope of the service
rendered in rela tion to the service required.
{21 The necessity of contrHcling for the
sen'ice, considering the organization's
r.apahility in the particular area.
(:1) The past pattern of such costs.
parlicularly in the years prior to Government
awards.
(4) The impact of Government awards on
the organizotion's business (i.c.. what new
problems have arisen).
(51 Whether the proportion of Government
work to the organization's total business is
su.:h as to inOuence the organization in favor
of incurring the cost, particularly where the
services rendered are not of a continuing
noture and have little relationship to work
under Government grants and contructs.
(6) Whether the service can be performed
more economically by direct employment
rather than contracting.
(7) The qualifications of the individual or
concern rendering the service and the
custOfTl~ry fees charged. especially on non.
Government awards.
(0) Adequacy of the contraclual agreement
for the service (e.g.. description of the service,
estimate of time required. rate of
compensation, and termination provi~ions).
c. In llddition to the factors in PQragroph b
above. retiliner fee~ to the allowable must be
Sllpported by evidenr.e of bona fide services
availoblr. or rendercd.
d. Cost of I?gill. accounting. and consulting
~e/"\'ices. and related costs incurred in
conn~ction with defense of antitrust suits;
and the prosecution of clai.:T1s aRainst the
Government. arc 11111l1l0wnble. Cost~ of legal.
ac:;ounling und consulting services. and
related costs. incurred in connection with
palent infring'!mcnt litigation, organization
und reorgnnization. are unallowable unless
c:herwise prcwided fo..r in the award (but see
parngraph 47e1.
35. Prafi/s and losses on disposition of
depreciable properly or other capitol assets.
a.(l) Gains and losses on sale, retirement,
or other disposition of ciepreciable property
sh<:ll be inclurled in the year in which they
o~cur as cred;'~ or charge~ to cost grouping{s)
in which the depreciation applicable to such
property was included. The amount ~f the
~"in or loss to be inr:1uded as a credit ur
ch~rge to the appropriiltc cost ~r(1llping(s]
shull ue the dilfercnce bet ween the amount
/"l'nlized on the prcperly and the
uO!uepreciated basis of the property.
(2) Gains and losses on Ihe disposition of
(h'f.reciable property shall not be recognized
os R separate credit or charge under the
fnilowing conditions.
la) The gain or loss is processed through II
depreciation reserve account am] is r(;nec!ed
in the depreciation llllowalJle under
parugrnph 9.
(b) TIll! property is given in exchange a8
pari of the purchase price or a similar item
and the gain or 105s is taken inlo account in
de'ermining Ihe deprecia lion cost basis or Ihe
new item.
(c) A loss re~ulls from the fuilure to
maintain permissible insurance, except OB
otherwise pr\1Vided in pllragraph 1[J.a.(3).
(el) Compensalion for the use of the
property was pro\'idcd throogh use
allowance9 in lieu of depreciation in
occordance with paragrllph 9.
(e) Gains and losses arising from mass or
extraordinarv sales. retirements. or other
dispositions shall be considered on a case-
ll\'.case basis.
'b. Gains or losscs of any nalurc arising
from the sule or exchange of property other
than the property covered in paragraph a.
abnve sh;;1l be excluded in computing award-
costs.
35. Public informaliun seTl,jce costs.
a. Public information service costs include
the costassociated'with pamphlcts, news
releases, and other forms of information
services. Such costs are normally incurred to:
(1) inform or instruct individuals. groups. or
the general public.
(2) Interest individuals or groups in
participating in a Ber"/ice program of the
01 gsniza lion.
(3) Disseminate the resulls of sponsored
and nonsponsored activities.
b. Public info:matioi'l sen'ice costs are
allowable as direct costs with the prior
ai'pro\'al of the awarding agency. Such costs
are unallowable as indirect costs.
37. Publica/ion and printing CaS/E.
a. publication costs include the costs of
printing (including the processes 'of
composition. plale-makins. press work,
binding. and the end products produced by
a\lch processes). distribution, promotion,
mniJing. and general handling.
b. If these costs arc not identifiable with a
particular cost objective. Ihey should be
allocuted as indirect cosls to 8\1 benefiting
activities of the organization.
c. Publication ano printing costs are
unailowable 8S direct costs except with the
prior approval of the awarding agency.
d. The cost of page charges in journals is
addressed paragrilph 28.
3[J.Rearrangemenl.and aI/era/ion costs.
Costs incurred for ordinury or normal
rearrangement and alteration of facilities cre
allowable. Special arrangement and
alteration costs incurred specifically for the
project are allowable with the prior approval
of the awarding Agency.
39. Reconversion costs. Costs incurred in
the rtlstoration or rehabilllation of the
organl=han's fadlltiC1l to approximately the
_I
A-122:9
same condition existing immediately prior to
commencement of Government a wards, fuir
wear and tear excepted. lire allowable.
40. Recrui/ing costs. The following
recruiting cosls are allowable: cost of "help
wanted" advertising. opcrating costs of an
employment office, cosh of opcrating an
educational testing program, travel expenses
including rood and lodging of employees
while engaged in recruiting personnel. travel
cosls of applicnntB for interviews for
prospective employment. and relor.olion COSIS
incurred incident to recruitment of new
employees [see paragraph 41C). Where the
organi2:alion uses employment agencies.
costs not in excess of standard commercial
rates for such services are allowable.
41. Relocation cosU.
a. Relocation cosls are cosls incident to the
permanent change of duty assignment (for an
indefinite pcriod or for a stated period or not
less than 12 months) of an existing employee
or upon recruitment of a new employee.
Relocation costs are allowuble. Bubject 10 the
limitation described in paragraphs b, c, and d,
below, provided that:
(1) The move is for the benefit of the
employer.
(2) Reimbursemcnt 10 the employee is in
accordance wilh an established written
policy consistently followed by the employer.
(3) The reimbursement does nol exceed the
employee's actual [or reasonably estimated)
expcnses.
b. ^llowoble reloca tion costs for current
employees ore limited to the following:
(1) The costa of transportation of the
employec. members of his immediate family
and his household, and personal effects to the
new location.
(2) The costs of fInding a neW home, such
as advance trips by employees and spouses
to locate living quarters and temporary
lodging during the transition period, up to a
maximum period of 30 days. incJuding
advance trip time.
(3) Closing costs. such as brokerage, legal,.
and appraisal fees. incident to the disposition
of the employee's former borne. These costs.
together with those described in (4) below,
are limiled to B per cent of Lbe""sales price of
the employcc's form~ home. '.
(4) The continuing costs of ownership of
the vacant former borne after Lbe settlement
or lease date of the employee's new
permanent home, such as mainlenance of
buildings and grounds [exclusive of fixing up
expenses). utilities, taxes, and property
insurance.
(5] Other necessary and reasonable
expenses normally incident to relocation.
such as the cosls or canceUing an unexpired
lease. disconnecting and reinstalling
household appliances, and purchasing
insurance against loss of or damages to
personal property. The cost of cancelling an
unexpired lease is limiled to threa times the
monthh' rentaL
c. Allowable relocation cools for new
employees ere limited to Lboae described in
(1) and (2) of paragraph b. 8 bove. When
relocation costs incurred incident to Lbe
recruItment of new employaes have been
allowed either as a direct or iRwrect COBt aod
the employee l'06igns for reasons within bis
~, . I \ I
.~
_L .. '.1",
~.
Office of Management and Budget Circular A-122 (6/27/80)
control within 12 months aftcr hire. the
organization shall refund or credit the
Government for its share of tbe 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 dcpendents are nol permitted at
the location for any reason and the costs do
not include costs of transporting household
goods.
d, The following costs related to relocation
are unallowable:
(1) fees and other costs associ?tcd with
acquiring a new home.
(2) A loss on the sllle of a former home.
13J Continuing mortg~ge principal Bnd
inlerest payments on a home being sold.
(4) Incomc taxes paid by fin employee
relatcd to reimbursed reloclltion costs.
42. Rental costs.
a. Subject to the limitations describerl in
paragraphs b. through d. of this paragraph.
rcntal costs are allowable to the extent that
the rates are reawnable in light of such
factors as: renlal costs of comparable
property, if any; market conditions in the
area; alternatives available; 'and the type, life
expectancy. condition. and value of the
property 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
under which one party to the lease agreement
is able to control or substantially innuence
the actions of the other. Such lcases include,
but are not limited to those between [i]
divisions of an organization; [ii] organizations
under r.ommon controlthrougb common
of;jcers, directors, or members: and (iiiJ an
organization and a director, trustee. officer.
or key I!mployee of the organization or his
immediate family either directly or tr.rough
corporations, trusts. or similar arrangements
in which they hold a controlling interest.
d. Rental costs under leases which create a
material equity in the leased property are
allowable only up to the amou.r;i that would
be allowed had the organization purr.based
the property on the date the lease agree!:lent
was executed; e.g., deprecia tion or use
allowances. maintenance, taxes. insurance
but excluding interest expense and other
unallowable costs. For this purpose. a
material equity in the property exists if the
lease in noncancelable or is cancelable on!.
upon the occurrence of some remote .
contingency and has one or~more of the
following characteristics: '
(1) The organization has the right to
purchase the property for a price which ilt the
beg'nning of the lease appears 10 be
substantially less than the probable fair
market value at the time it is permitted to
purchase the property (commonly called a
lease wilh a bargain purchase option);
(2J Tille to the property pas~es to the
organiza tion a t some tlme during or after the
lease period;
(3) The term of the lease (initial term plus
periods covered by bargain rcnewal 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 10 be
econor.lically usable by one or more users.
43 rlayalties and other costs lor use 01
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:
(1) TIle Government has a license or the
right to free use of the putent or copyright.
(2) The patent or copyright has been
adjudicated to be invalid. or has been
administrativelv delermined to be invalid.
[3) The palen't or copyright is considered to
be unenforcea ble.
(4J The patent or copyright is expired.
b. Special care should be exercised in
determining reasonableness wherc 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
corporations. affiliated with the organization.
(2J Royalties paid to unaffiliated parties.
including corporations. under an agreement
entered into in contemplation that a
Govcrnment awerd would be made.
(3) Royalties paid under an agreement
entered into after an award is made to an
organization.
c. In allY case involving a patent or
copyright formerly owned by the
organization. the amount of royalty allowed
should not exceed the cost which would have
been allowed had the organization retained
title thereto.
44. Severance pay.
a. Severance pay, also commonly referred
to as dismissal wages, is a payment in
addition to regular salaries and wages, by
organizations to workers whose employment
is being terminated, Costs of severance pay
are allowable only to the extent that in ear;h
case. it is required by (i) law. (iiJ employe.-
employee agreement. (iiiJ esl:)b!ished policy
that con;;litutes. in effect. an implied
agreement em the organi~ation's part. or (iv)
CirCUITI5ta:lces of t!:e particular employment.
b. Costs of severance p:lyments are divideu
into two categories as follOWS:
(1) Actual normal trunover EeVer<lrlce
payments shall be allocated to all activities;
or. where the organization provides for a
reserve for normal seVeran(;~s such method
will be acceptable if the charge to current
operations is .casonatle in !iSht of payments
actually made fo. normal seVp.rances over"
representative past period. and if amcur-Is
charged are allocated \0 all activities of the
organization.
(2) Abnormal or mass severancc puy is of
such a conjectural naiure that measuremenl
of costs by means of an accrual will nct
<:chieve equity to both parties, Thus. accruals
for this pu'pose are not allowuble. However.
the Government recogni7.e~ i!s obligation to
purtic:ipa te to the extent of its fair share, in
any specific payment. Thus. allowability will
be considcred on a case-by-case basis in the
event of nccurrenr.e.
~5. Specioli....ed sen'ice locilities.
a. The costs of services provided by highly
A-122:10
complex or specialized facilities operAted by
the organization. suc:h as electronic
computers and wind tunnels. are sllowable
provided the charges for the services meet
the conditions of either b. or c. of this
paragrsph and. in addition. take into account
any items of income or Federal financing thaI
qualify as applicable credits undcr paragraph
A.S. of Attachment A.
b. The costs of such services, when
material. must be charged directly to
applicable uwarus based on acluAI U-,age of
the services on the basis of a schedule of
rales or established methodology that [i) docs
not discriminate against federally supported
activities of thc organizution, including usage
by the organizution for internal purposes. and
(ii) is designed 10 recover only tlte aggregate
costs of.lhe services. The costs of each
service shall consist normally of both its
direct c:osts ~nd its allocable shure of nil
indirec:1 costs. Advunce agreements pursllant
to parllgraph A.5. of Attuchment A arc
particularly imporlant in this situation.
c. Where the costs incurred for a service
Arc not material. the}' may be allOCated as
Indirect costs.
40. Taxes.
a. In general. laxes which the organiz3tion
:s required to pay and whi:;h are paiu or
.occ:rued in accordunce with generally
accepted accounting principles. and
payments made to local governments in lieu
of taxes which are commensurate with thc
local government scrviccs received are
allowuble, except for (iJ taxes from which
exemptions are available to the organizalion
directi\" or which are avail;Jble to the
organi~ation based on an e:>.emplion afforded
the Government and in the latter case when
the awarding agency makes Bvai!able the
n'lce~sary exemption certifica tes, [ii) special
aSfieS5men!s on land which represent capital
improvements. and (iiiJ Federal income taxes.
b. Any refund of l<<xes, and any pilymcnt to
the organization of intcrest thereon. which
were allowed as award costs, wi'll be
c:reuitcd either as a cosl reuuction or cush
refund, as appropriate. to the Government.
47. Terminution costs. Terminali6n of
ilwan.ls generally give rislt to the incurrei,cc:
of costs. or the need for speciilllrea tment of
costs. whic:h would not have arisen hud the
aW3rd not been terminutcG. Cost principles
covering these items are set forlh below.
They ilre to be used in conjunction with the
'other provisions of this Circul::Jr in
termination situations.
a. Common itp.lIls. The cust of itN!lS
reusonably usable on the organization's othcr
wark sbll nol be u!lowable unlr.ss the
org;lr.izulion submits evidence that il would
not retain such items at cost without
sllstaining a loss. In deciding whether such
items arc reasonnbly uS3ble on olner work of
Ihe organization, the awarJil:g agency shouid
consiuer the orgunizution's plans and urders
for current and scheduled activily.
Contemporaneous purchascs of common
items by the organization shall be rf:garded
as evidence that sllch items are reasonubly
lIsable on the organization's other wurk. Any
ar.cept::Jnce of common items nS allocuble to
the terminated portion of the award shull be
limited 10 the extent that the q\lunliti"s of
~
".
..
I
Office of Management and Budget Circular A-122 (6/27/80)
such items on hand. in transit. and on omer
are in exc~S of the reasonable quantitative
requirements of oLhr.r work.
b. Cas 13 continuing alter termination. l! in
a panicWar ca~. despite all reasonable
efforts by the organization. certain cos18
cannot be discontinued immediately alter the
effective date of termination. such costs are
generally allowable within the limitations set
forth i:1 this CirculIlI. except that any such
cosls continuing alter termination due to the
negligent or willful failure of the organization
10 discontinue such costs shall be
unallowable. .
e. Loss of L'seful value. Loss of useful value
of special tooling, machinery and equipment
w~>:h was not charged to the award as a
c;a;.'.ial~xpenditure is generally allowable if:
i: ; Such special tooling, macbinery. or
eq. :pment is not reasonably capable of use in
L!J:. -.;ther work of the organization.
(::I The interest of the Govemme:lt is
~~r ~~t?d by transfer of title or "y other
n1r':J:lS deemed appropriate by the awarding
s.:' r.cy;
"'d. Rental costs, Rental costs under
u~"xpired leases are generally allowable
";'~re clearly shown to have been
n..:~onably necessary for the periormance oC
Ib terminate<:! awam less the residual value
0;' such leases, if (i) the amou..,t of such rental
ci:.imp.d does not exceed the reasonable use
val:Je of the property leased for the period oC
tr." aW:Jrd and such further period as may be
rr.,:.ll)::,:ble. and (ii) the organization makes
aU reasonable efforts to terminale. assign.
seltle, or otherwise reduce the cost of such
lease. There also mev be included the cost oC
ellerations of such le'ased property. provide<:!
such al:erations were necessary for the
periormance of the award. and of reasonable
restor:;tion require<:! by the provisioDll of the
lell~e.
e. Set/lement expense!!. Settlement
expenses including the following aN'
gen!'raUy allowable:
(1) Accounting. legaL clerical. and similar
costs reasonably neC~5SaIJ' fo,-
(a) The preparation and presentation to
awarding agency of settlement claims and
supponing data with reBpect to the
lenninated portion of the sward. unless the
termination is [or default. (See parllgraoh 4.a
oi At1achmcnt 1.. OMB Circular No. A-ilO;
and
(b) The termination aDd settlement of
subawa~.
(2) Reasona ble COBtB for the storage,
transponatioT'_ protection. and disposition of
property provided by the Government or
a~quired or produced for the aware: except
wDen grantees are reimbuned for disposals
at a predetermined amOlont in accortiance
with ^tlachment ~ of OMB Circular A-ll0.
(3) Indirect costs related to s>l}aries and
wages incurred as settlement eXpenBe1l in
subparagraphs (1) and (2J of th~ paragraph.
Nonnally. such indirect costs shall be limited
to fringe benenu. occupancy cosL and
immedia te supervision.
f. Claim!! u,.,der subowards. Claims under
subawards. including the allocable portion of
claims which are common Lo the award. and
to other work of the organization are
generaUy allowable. An appropriate share of
the organization's indirect expense may be
allocated to the amount of settlemenu with
subcontractor/suhgrantee.; provided that the
amount allocated is otherwis~ consistent
with the basic guidelines contained in
Attachment A.. The indirect expense so
allocated shall exclude the same and similar
costs c:laimed directly or indirectly as
settlement expenses.
48. TroinillS and educotion coats.
Ii. Costs of preparation and maintenance oC
a program of instruction including but not
limited to on-tha-job. clasaroom. and
apprenticeship training. designed to increase
tha vocational effectiveness of employec~
including training materials. textbooo.
salaries or weges oC trliinees (llXcluding
overtime compelUlation which might ari~
therefrom]. and (iJ salaries of the director of
training and staff when the training program
is conducted by the organization; or (ii)
tuition and fees when the training is in an
inlltitution Dot 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. are allowable only when the
course or degree punue<:! il relative 10 the
field in which the employee i. now working
or may reasonably be expected to work. and
are limited 10:
(1) Training materials.
(2) Textbooka.
'(3) Fees chargelt by the edccational
institution.
(4) Tuition charged by the educational
institution. or in lieu oC tuition. instructors'
salariell and the relate<:! share of indirect
costs of the educational institution to the
extent that the sum thereof ~ not in excess of
the tuition which would have ben pajd to the
participating educational institution.
(5) Salaries and related costs of mslructors
who are employees of tha OrganizatiOL
(6) Straight-time compensation of each
employee for time spent anending class&c
dwing werking hours oat in excess of 156
hours per year and only to the extent that
circumst:mces do not permit the operation of
classes or attendance at classel after regular
working hours: otherwise such compensation
is unallowable.
e. C.:lsts of tuition. Ices. traini!Jg materials,
and textbookB (but not subsiltence. sOIliUJ', 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 allewable onlv when the co~e or
degree pursued is relate'd to the field in which
the employee is now working or may
re88on.ably be expected 10 work. and only
where th~ costs receive the prior approval of
the awarding agency. Such costs are limite<:!
to the costs attributable 10 a total period not
to exceed 0l1~ school year for each employee
so trained. In unusual cases the period may
be extended.
d. COSIs of attendance of up to 16 week.,
per employee per year at specialized
programs specifically designed to enhance
the e{{ectiveness of executives or ma:J.agers
or to prepare employees for such positions
are allowable. Such costs include enrollment
I
A-122:11
fees. training materials, textbookB and
related charges. employees' salaries..
subsistence. and traveL Costs allowable
under trus paragraph do not include thOIH! for
courses that are part of a degree-oriented
curricwum. which are allowable only to the
extent set forth in b. and e. above.
e. Maintenance expense. and normal
depreciation or fair rental on facilities
owned or leased by the orsaniza lion for
training PllIl'oses are allowable to the extent
sP.t fortb in paragraphs 9, 22. and 42-
f. C:.mtributions or donations to
educational or training in~t1tulions, includlng
l1:e donation of facilities or otber propp.rties.
amJ scholarships or fellowships, are
unallowable.
g. Training and education cosu in excess oj
Ihose otherwiss allowable under paragraphs
...b. and c, of this paragraph may be allowed
with prior approval of the awarding agency.
To be considered for approvaL tha
organization must demonstrate that such
cosls are consiatently incurred pursuant to ao
estublished training and educa:ion program,
and that the course or degree pursued is
rela tive to the Deld in which the employee is
now working or may reasoncbly be expected
to work.
49. Transportatian costs. Transportatlon
C\JsIS include freight. express. cartage. and
postage charges relating either to goods
purchased. in process. or delivered. These'
COBts are allowable. When such costs can
readily be identilied with the iteIn! involved.
they may be directly charged as
lransportatlon cosu or added to the cost of
such items (see paragraph Z3). Where
identification with the materials received
cannot readily be made. lrllnsportation costs
may be charged to the appropriate indirect
cost accounts if the organization follows a
consistent. equitable procedure in this
respe'::t.
SO. Travel costs.
a. Tra vel costs are the expenses for
transportation. lodging. subtiistence. and
related items incurred by employees who are
in tra vel staM on official business of the
organization.. Travel cosls are allowable
subject to paragraphs b. tfu.ol,lgb e, below.
when they are ~ectly attributable to specifie
work under an sward or.are incurred in the
normal course of administratioo of the
organization.
b. Such r.osts may be charged on an actual
basis. on a per diem or mileage basis in lieu
of actual costs incurred. or on a combina lion
of lhe tWo. proTided the method used results
in charges consistent with those normally
allowed by the organization in its regular
opera tions.
e. The cillference in cost between first-class
air accommoda tions and less than first-class
air accommodations is unallowable except
when less than first-class air
accommoda tions a..--e not reasona bly
a vailable to meet necesaary mission
requirements, such as where less thaci first.
c1asa accommodations would (i) require
circuitous routing. (i1) require travel during
unreasonable hours. (iii) greatly increase the
duration. of the Dight, (iv) resull in additional
costs which would offsel the trensDortaUon
savir.gs, or (v) offer nccommodatio'ns which
. ,
....
~
.,.
L-
Jfflce of Management and Budget Circular A-122 (6/27/80)
;I"e not reasonably adequate for the medical
-:eedB of the traveler,
ct Necessary and roawnable costs oC
:amily movements and penlonnel movements
Jf a special or mus nature B.rlI a\lowabl6-
;:>Uf'Suant to paragrapha 4{) and 41. subject to
allocation on the basis of work or time period
Jer:efited when appropriate. Advance
agreements are particularly importnnL
e. Direct chargell for foreign travel cosh are
allowable only wben the travel bas received
xior approval of the awarding agency. Each
;eparate foreign trip must be approved. For
;lUrposes of this provision. foreign tra vol is
defined as any travel outBide of Canada and
:!le United States and its tenitories and
possessions. However, for an orgllIlization
located in foreign countries. the lenn "foreign
:ravel"' means travel outBide that country.
[Circular.No. A-l22]
Attachment C
:'-onprofit OI11an.izations Dot Subject to thiB
CJu1W
Aerospace Corporation. El Segundo.
California
:!<.I'3onne Universities Association. Chicago,
Illinois
Associated Universities, lncorporated.
Washington. D.C-
Associated Universities for Research and
Astronomy, Tucson. .tvizona
....lomic Casualty Commission. Washington.
D.C-
Battelle Memoriallnstitute. Haadquwiered in
Coiumbus. Ohio
Broolu'laven National Laboratory. Upton.
New York
Center ior Energy and Environmental
Resee.rch (CEER), (University oi Puerto
Rico)
Commonwealth of Puerto Rico. Charles Sla:k
Draper Laboratory. lncorporated
Cambridge. Massachusetts. Comparative
Animal Research Laboratory (CARL)
["uni\'ersity of Tennessee), Oskridge.
Ter.nr."ee
i::1\"ironmentallnstitute of M.ichigan. Ann
Arbor. Michigan
:-:adord Environmental Health Foundation.
Richland. Washington
Lj Research Institute, Chicago. nJinois
b~lilute jor Deiense Analysis. Arlington.
Virginia
bstilule of Gas Technology. Chicago. ll1i.nois
~{idwesf Research Institute, Headquartered
in hunsas City. M.issouri
).lilre Corporation. Bedford. Massacnlliletts
).lonlilna Energy Research and Development
Institute. lnc~ (NlERDI). Butte. Montana
:,alional Radiological Astronomy
Observatory, Green Bank. West Virginia
Oakrioge Auociated Universities. Oaklidge.
Tennessee
?:-oject Management Corporation. Oakrid.Jle.
T er-..nessee -
F,ano Corporation. Santa Monica. CalifomJa
;:,e5earch Triangle bstitute. Research
Triangle Park. North Carolina
?,ive:-side Research lnstitute. New York. New
York
S.andia Corporation. Albuquerque. New
\~"X::0
Southem Research Institute, Birminghs..m.
Alabama
Southwesl Research lnstltute. San Antonia.
Texas
SRllnternatlonaL Meu.lo Parle. CallIomJa
Syracuse Reeearch Corporation. SyI'BCIa8,
New YorX
Universities Research Association.
lncorpora ted (National Accelers lion La b).
Argonne. Dlinois
UniveniUes Corporation for Atmospheric
Research. Boulder. Colorado
Nonprofit insurance Companies such as Blue
era" and Blue Shield Organizations
Other nonprofit oI11anizations 81 negotiated
'Kith awarding egencies.
(Fl\ Doc. 80-=0 F1Iod 7-7-<<1; eo.5 ''''1
~ COOE 311~1~
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
Dudget.
ACTION: Final policy correction.
SUMMARY: This notice corrects errors in
the prin ting of cos t principles for
nonprofit organiza lions, (45 FR 46022,
July a, 1960).
FOR FURTHER INFORMATION CONTACT:
Palmcr 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 Serviccs"
to Paragraph 6.
. Page 46022. column 2 the second
Paragraph 2. change Paragraph 6
"Contingencies"' to Paragraph 7.
. Page 46022. column 3:
Paragraph 4, change Paragraph 31.
"'Equipment and Other Capital
Expenditures"' to Paragraph 13.
. Paragraph 5. change Paragraph 26
"'Mcetings"' to Paragraph 24.
. Paragraph B. change Paragraph 27.
"'Or-ganir.ation Costs" to Paragraph'26.
. Paragraph 7, change' Paragraph 30
"Pagc char-ges in Professtional Journals"
to Paragraph 28.
. Paragraph 8. change paragraph 37
"'Public Inform a tion Service Costs" to
Parngraph 36.
. Paragraph 9. change Paragraph 43
"Rental Costs" to Paragraph 42.
. Paragraph 9a: in the fourth line. add
"'up" between the words "'only"' and
"'10"; in the sixth line changc "thcy" to
"it".
. Parngraph 10. change Parngraph 51
"Tr~~\,pl Cnc;ts" tn P~r:lt~r-l1nh :In.
-I
A-122:12
. Page 46024. column 3 Paragraph
4(<1)(2) after "'benefits received" add "';
or".
. Page 46025. column 1 Paragr/lph D3,
change the rclerence "'Paragraph 21 of
Attachment B"' to "'Paragraph 19 of
Allachment D."'
. Page 46026. co{umn 1 Paragraph
4a.iii. in the sixth line. change "'direct
cost" to "direct cosls."'
. Page 46026, column 2 Paragraph
Elc, change "e'stablishment of a ratc" to
"'cstablishmcnt of a final ralc."
. Page 46026. column 3 Paragroph
E2b, in thc third line add thc following
aftcr "a Fcderal agcncy shall"-"'submit
its initial indircct cost proposal
immcdiatel"."'
. Page 4{;,.'127. column 3 Paragraph
'. (3)(0), change "workmen's
compcnsation" to "'workerF'
compensation."
. Page 46028. column 1 Paragraph
6f3(b). (the sccond line of column 1)
chonge "'Workmen's compcnsation"' to
"workers' compensation."'
. Page 46030, -column 3, paragraph
24b.. the sixth line. change "'allowable"
to "allowability"',
Daniel F. Mann.
nudgel ond MOIlogemenl Officer.
1m Doc. 81--l107J Filed :l-lfHll: ~45 Ami
BILLING CODE 311G-{)1-M
Circular A-122, "Cost Principles for
Nonprofit Organizations"
Correction
In FR Doc. 81-20270, appearing at
page 46022 in the issue of Tuesday. July
0, 1980. the following changes should be
made:
1. On page 46024. column three, tbe
second sentence in paragraph ~.5,b.
should read. "Specific~ly. the concept
of netting such credit items against:
related expenditures should be applied
by the organization in determining the
rates or amounts to be charged to
Federal awards Tor services rendered
whenever the facilities or other
resources used in providing such
scrvices have been financed directly. in
whole or in part. by Federal funds,"'
2. On page 46024, column three, the
sccond complete sentcnce in paragraph
A.a. should read, '"This is particularly
true in connection ",-jlh organiza tions
tha t rcccivc a preponderance of their
support from Fedcral agencies."'
3. On pagc 46025. column one,
paragraph D.2, should read, "'2. Any
dircct cost of a minor amount may be
treated as an indirect cost for reasons of
practicality where the accounting
trcatment for such cost is consistently
nrr1i,'d tn /III fin/ll r.ost nhicr.tives."
".~, ,.
',' ..
".
."
I
Office of Management and Budget Circular A-122 (6/27/80)
4. On page 46025. column one.
paragraph B.4.f. should read, "f.
Administration of group benefits on
behalf of members or clients including
life and hospital imurance, annuity or
retirement plans, financial aid. etc."
5. On page 46025. column two. the first
sentence in paragraph D.1.e. should
read, "The base period for the allocation
of indirect costs is the period in which
such costs are incurred and accl,lmuluted
for allocation to work performed in that
period."
O. On page 4G02G. column one, the
second sentence in paragraph D.3.d
should read, ''The costs in the common
pool shall then be distributed to
individual awards included in thut
function by use of a single indirect cost
rate."
7. On page 46020, column one, the first
sentence in puragraph D.3.e. should
read, "The distribution based used in
computing the indirect cost rate for each
function may be total direct costs
(excluding capital expenditures and
other distorting items such as major
subcontracts and subgrunts). direct
::alaries and wages, or o.ther base which
results in an equitable distribution."
B. On page 46020, column one. the first
and second sentences in paragraph
D.4.a. should read, "Some nonprofit
organizations treat all costs as direct
costs except general administration and
general expenses. These organizations'
generally separate their costs into three
basic Cll te/lories:' . .:.
9. On page 46020, the last sentence in
column one (extending to column two).
in paragraph 0.5. should read. "The
factors may include the physical
loca tion of the work. the level of
administrative suppor! required. the
na ture of the facili ties or other resources
employed, the scientific disciplines or
technical skills involved, the
organizational arrangements used, or
any combination thereof."
10. On page 46026. column three.
paragraph E.2.i. should read, "i. To the
extent that problems are encountered
amon,g 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.u. and
paragraph 1G.b.(1) should read. "b. The
costs of idle facilities are unallowable
except to the extent that: (1) They are
necessary to meet Ductuations in
workloads; or".
12. On page 46030. column one, the
second sentence in paragraph 16.c.
should read. "Such costs are allowable.
provided the capacity is reasonably
antir.ipated to be necessary or WIIS
originally reasonable and is not subject
to reduction or elimination by sublelling,
renting. or sale. in accordance with
sound business. economics or security
practices:'
13. On page 46031. second column.
paragraph 34.c. should read, "In addition
to the factors in paragraph b. above.
retainer fees to be allowable must be
supported by evidence of bonf! fide
services available or rendered."
II/LUNG COOE lSO~I-N
I"
"
.. ~
A-122:13
'\
..
" .~ f
'.
I
I
~...
-,
C I T Y
OF CLEARWATER
Interdepartment Correspondence
FROM:
J. D. Sheeler, Community Development
<ofifl-
Managp
TO:
Al Galbraith, City Attorney
SUBJECT:
CDBG Agreements
COPIES:
James Polatty, Michael Wright
DATE:
October 20, 1989
Please review and process through the City Commission the attached Community
Development Agreements. These Agreements implement the Community Development
Block Grant Program approved by the Commission on June I, 1989.
Time is of the essence on these Agreements which are for agency activities with
usual starting dates of October I, 1989.
Attached are nine Agreements for:
~ Ervin's All American Youth Club, Inc.
~ Girls Clubs of Pinellas County (Basic Program)
~ Religious Community Services
v Clearwater Housing Authority, Inc.
v Community Service Foundation
~Boys Clubs of Pinellas County
". Communi ty Pride Child Care Ctr.
~ YWCA of St. Petersburg, Florida
......Quest Inn, Inc.
The three remaining Agreements which will be forwarded upon signature by the
community agencies are:
Clearwater Neighborhood Housing Services, Inc
~Girls Clubs of Pinellas County (Condon King's Kids Program) . In'
Isaiah's Inn - "';"f:;- ~"'~
~J- ~JJLJl
These will be forwarded as soon as they are available.
If there are any questions, please contact me at ext. 6840.
JDS/cma
Enclosure
RECE\VED
OCT 2 4 1989
~'TY ATTORNEY
~ ~~f'
II
I
MEMORANDUM TO:
The City Com mission of the City of Clearwater
SUBJECT:
. .
I Agenda No.
Meeting Date:
CDBG Agency Agreements for 1989-1990
~~,
RECOM MENDATION':
__.....4._~~
~... ."
City Commission authorize the Agreements with Community Organizations for support through
the Community Development Block Grant Program.
I5a And that the approprlbte officials be authorized to execute some.
BACKGROUN D:
The following Agreement with community service organizations are a part of the Community
Development Block Grant (CDBG) Program approved by the City Commission on June 1, 1989, for
the CDBG Program year beginning October 1, 1989.
1. Ervin's All American Youth Club, Inc.
2. Girls Clubs of Pine11as County (Basic Program)
3. Religious Community Services
4. Clearwater Housing Authority, Inc.
5. Community Service Foundation
6. Boys Clubs of Pine11as County
7. Community Pride Child Care Ctr.
8. YWCA of St. Petersburg, Florida
9. Quest Inn, Inc.
Federal regulations require that Agreements be executed between the city and agencies
providing CDBG supported activities.
Up to three additional Agreements will be forwarded upon signature by the respective
agencies.
Commission Disposition:
1. Approved as Recommended/Revised/Conditional
2. Continued to
Follow-up Action:
datf!
Submitted by: Advertised: o Affected Costs: N/A IXlAttachments:
6??j' /2j Date: Parties Funding Source: 11 CDBG Agency
Notified o Capital Improve- Agreements
City Manager Paper: of Meeting ment Budget
~ Not Required [J Not Required o Operating Budget
o Other
Originating Deportment: Funded bv CDBG
Date a Sequential Legal Appropriation Code
Reference o None