FUNDING AGREEMENT
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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 RELIGIOUS COMMUNITY SERVICES, 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 progr~ 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 ~ount and shall use the funds
in accordance with the award to be paid with Community Development Funds included
in Appendix B. Funds shall not be obligated when payment has been suspended or
terminated pursuant to paragraph 19 hereof. Any funds which the Department
determines were not properly expended shall be refunded to the City.
5. The PSA shall comply with the provisions of OMB Circular A-110,
provided in Appendix G, and with the provisions of OMB Circular 122, provided
in Appendix H, or the appropriate successor documents of these documents. The
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J PSA shall permit the City to audit the PSA's financial operation including but
not limited to compliance with applicable provisions of Federal law and
regulations. All PSA financial records relating to the Project are subject to
review by the City.
6. All subcontractors under this agreement shall be approved by the City.
7. All purchases of consumable, capital equipment and services shall be
in conformity with the Procurement Standards set forth in OMB Circular A-110,
Attachment O. Accountability for project property and equipment shall be in
accordance with the requirements therein set forth.
8. The City agrees to make payment of budgeted costs on a reimbursement
basis. Requests for payment shall be as specified in Attachment B. No advance
payments shall be made to the PSA. All costs and invoices for request for
payment shall be supported by properly executed payrolls, time records, invoices,
contracts, or vouchers, or other official documentation evidencing in proper
detail the nature and propriety of the charges. All checks payrolls, invoices,
contracts, vouchers, orders or other accounting documents pertaining in whole
or in part to the agreement shall by clearly identified and readily accessible.
Final request for reimbursement hereunder shall be submitted within 30 days after
completion of all services to be performed by the PSA and the City shall not be
responsible for payment of any charges, claims or demands hereunder not received
within said thirty day period.
9. The PSA shall upon the expiration of this agreement transfer to the
city any CDBG funds on hand and any accounts receivable attributable to the use
of CDBG funds. Program income funds are excluded from this provision or and are
provided below.
Program income funds shall be retained by the PSA so long as the activities
that will be undertaken with the program income 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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_~r 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)(B)(i) of Section 570.503..~
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 term. This final report shall consolidate reporting of all project
participants.
15. PSA shall establish and maintain on an accrual basis an accounting
system in accordance with the Standards of Grantee Financial Management System
as set forth in OMB Circular A-110 or the appropriate successor document and in
accordance with generally accepted accounting principals and standards where
these principals and standards are not in conflict with A-110 or its successor.
PSA agrees to modify or correct said systems in accordance with he City's
requirements.
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16. PSA shall maintain such records and accounts as are deemed necessary by
the city to assure a proper accounting for all project funds. All such records shall
be available for audit, inspection or copying purposes at any time during normal
business hours and as often as the City, HUD, and/or representatives of the
Comptroller General of the United States, or other federal agency, may deem
reasonably necessary. Such records shall be retained for such period as required
by applicable laws and regulations and may thereafter be destroyed only with the
prior written approval of the City. Such records shall include financial records,
audits, supporting documents, statistical reports and client files. PSA will comply
with such additional requirements as to maintenance of records as the City may
request in writing. In the event the PSA cannot continue to be responsible for
maintenance of the records, then the City shall be so notified 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.
The City may suspend, withhold, or terminate payment of the project, in
part, for cause or convenience. Cause shall included the following:
Use of funds that does not follow project guidelines.
Failure to comply with any term or condition hereunder.
Refusal to accept conditions imposed by HOD.
Refusal to accept conditions imposed by the City.
Submittal of reports which are incorrect or incomplete in any material
respect.
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.
19.
whole or in
a.
b.
c.
d.
e.
f.
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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~ational 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.
RELIGIOUS COMMUNITY SERVICES. INC.
By
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, President
ATTEST~ .k
Secretary
c:~ o:aw;~' F~
Ron H. Rabun
City Manager
/
Rita Garvey
Mayor-Commissioner
ATTEST:
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Approved as to form & correctness:
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Agency: RCS Emergencv Hsng.
Year: 1989 - 1990
APPENDIX A
Identification of A2ency and Snecific Services to be Provided
AGENCY
Name:
Religious Community Services, Inc.
Legal classification:
A non-profit corporation organized and existing under
the laws of the State of Florida.
Principal Office:
1855 Highland Avenue S., Clearwater, FL 34616
Mailing Address:
1125 Holt Avenue, Clearwater, FL 34615
Agent:
Pat Davis, Director
813-446-5964
PROGRAM OF AGENCY
The RCS Emergency Housing Project provides temporary shelter, food, clothing,
counseling, and inter-agency referrals to families with children in crisis
situations wherein they are without shelter, financial resources and other
support systems.
SPECIFIC SERVICES TO BE PROVIDED UNDER. THIS AGREEMENT
Structural, electrical, plumbing and miscellaneous repairs will be made to the
RCS Emergency Housing facility as follows:
TO UNIT 1221
1. Repair floors in kitchen, bathrooms, hallway, and bedrooms (250 sq ft)
2. Replace floor covering throughout unit (480 sq ft)
3. Install skirting around unit (155 If)
4. Replace underfloor & insulation (300 sq ft)
5. Repair torn exterior metal wall covering
6. Install new formica tops in kitchen & bathroom
7. Install 6 new doors (interior) w/new hardware
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8. Replace 8 light fixtures (interior)
9. Install new heater front
10. Install new kitchen range hood w/vent
11. Install new tub faucet in bathroom
12. Paint all interior ceilings
13. Such other repairs as needed within available funding.
TO ANY OTHER UNIT
14. Such other repairs as needed within available funding after all needed
repairs are provided for the unit above. unless a different priority is
authorized in writing by the City Community Development Manager.
SCHEDULE
All of the SPECIFIC SERVICES as listed above will be completed as of the time
specified in the paragraph number 2. on page 1 of this Agreement.
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Agency: RCS Emergencv Hsng.
Year: 1989 - 1990
APPENDIX B
Proiect Award
Funding for renovation of up to $3,600.00 will be provided for renovation work
that includes structural, electrical, plumbing and miscellaneous repairs to
mobile homes located at the RCS Emergency Housing Facility.
TOTAL $ 3,600.00
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APPENDIX C
METHOD OF PAYMENT
All payments shall be on a reimbursement basis only.
All requests for reimbursement shall be supported by proper invoices, payrolls,
checks, receipts, and other documentation as requested.
Any program income shall be submitted to the CITY through the DEPARTMENT at least
Quarterlv. Fees collected, if any, shall be reported but are not to be construed
as program income.
Requests for reimbursement shall not be reduced by any program income received.
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Subplll"t K-0ther Program
Requirements
I 570,1>00 Gen-eral
(u) Section l04(b) tr the Act provide!
thotany granl under ~ection 100 of Ihe
Act dlllll be IT. ,c:' nly if the gronlee
cerlifies '10 the sllti6foclion 01 the
Secreta'l")', among oUler Ulinp, ulOlthe
grllnt "wilf b'e.conducted ond
administered in con1ormity wiuI Pub. L
B8-352 ond Pub. L. 00--204," and, further.
Iholthe grantee "will comply with the
olher provisions of this tille and with
other applicable laws."' SectioD l04(d)(l)
of the Act requires thai the Secretary
dt:termine with Tcspectto grants made
pursuant to section l06(b) (Entitlemenl
Grants) and 106(d)(2)(B) (HUD.
Administered Small Cities Grants), at
leasl on an annual basis. among other
things. "whether the granlee has carried
outlits) certifications in compliance
with the requirements and the primary
objectives 01 this title and with othcr
applicable laws. . . ."' Certain other
statutes are expressly made applicable
to Ilctivilies assisted under the Act by
the Act itself. while other laws not
referred to in the Act may be applicable
to such activilies by their own terms.
Certain statutes or Executive Orders
which may ue appuc.able 10 activities
assisted under the Act by their own
lenus' are administered or enforced by
governmental departrnenLi or agencies
otber than tbe Secretary or the
DeparimenL This Subpart K enumerates
laws which the Secretary will treal as
applicable to grants made under section
106 of the Act. otber than grants to
-'J APPENDIX D
OT!R PROGRA}1 REQUIRENENTS
Stales made pursuanl to scction l00(d)
of Ihe Acl. for purposes of the
determinations described abo\'e 10 be
made by the Secretary under Beclion
l04(d)(l) of the Acl. including Btatules
expressly mode applicable by the Act
and certain olher statute! Bnd Executive
Orders for which the Secretary has
enforcement respon~ibility. The abscnce
of mention herein of any other statute'
for which Ihe Secrelory docs not ha ve
direct enforcement rcsponsibility is nol
intended 10 be token as an indication
thol. in Ihe Secretory's opinion. such
stalule or Executive Order 15 nol
applicoble 10 activiliea Dssistcd under
thc Acl. For lows which the SccretDry
willlreal as opplicDble 10 gronte made
to Slates under section l00(d) of the Act
for purpOSCB of the delerminDlion
required 10 be mode by tbe Secretory
pursuanlto lection 104(d)(2) of Ihe Acl,
see l 570.4.96.
(b) This Subparl also sets forth certain
additional program requirements which
the Secrelar)' has determined to be
appljcable to grants provided under the
Act as a malter of administrative
dIscretion.
(c) in addition to grants made
pursuant 10 section loo[b) and
lOG(d)(2)(B) of the .....ct (Subparls D and F
of this Part. respecli>'ely), the
reouirements of this Subpart K are
applicable to grants made pursuanl to
sections 107 and 119 of \he Act
(Subparts E and G. respectively).
~ 570.601 Pub. L 88-352 and Pub. L W-
284; Executive Order 11063.
Section l04(b) of the Acl provides that
any grant under seclion 100 of tbe Acl
shall be made only if the grantee
ce'rtifies to the satisfaction of the
Secretary tbal tbe grant "will be
conducted and adm.inistered in
conformity with Pub. L 88-352 and Pub.
L. 90-284."' Similarlv, sectioD 107
provides thai no gr~nt ma)' be made
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under thai .ection (SecretaT)".
Discretionary Fund) or section 11g
(VDAG) without satisfaclory assurances
to' Ibe sa me erf e cl.
(a ) "Pub. L Bi-352" ref cn \0 Till e VI
of tbe Civil Right! Act of 1004 (42 U.S.C.
2(XX:X! et uq.), which providel thai no
penon 1n the United Stote! sholl on the
ground of race. color. or nolional origin,
be excluded from porticipotion In, be
denied tbe bcnefit! of. or be !uujected 10
discrimination under any program or
acllvlty receivlng Federal financial
Dssistance. Section 602 of the Civil
Rights Act of 1004 directs each Federal
depnrtmcntand agency empowered 10
exlend Federnl financial ossistonce 10
any progrom or octivity by woy of gronl
to effectuDle the forcgoing prohiuilion
by issuing rulee. regulations, or orden of
general oppllcability which shall be
cons is lent wilh achievement of Ihe
'. ,\alule authoritiflB the financial
assistance. HUO regulations
implementing \he requirements of Title
VI with reapectto HUD programs are
contained in 24 crn Part 1.
(b) "Pub. L 90-W4" refers 10 Tille VIII
of the, Civil Righls Act of 1%8 (42 U.S.C.
3001 et &eq.), popularly known os the
Fair Housing Act. which provides thai it
is the policy of the United Sta lee to
provide, within constilulional
limitations. for fair housing Ihroughoul
the United Slales and prohibils ony
person from discriminating in the sale or
renlal of housins. the financing of
housing, or tbe provision of brokerage
services. lncluding in any way making
unavailable or denying a dwelling to
any.person. because of race, color,
religion, sex. or national origin. Title
VIII further requires the Secretary to
administer the programs and activities
relating to housing and urban
development in Il manner affirmatively
to further the purposes of Title VIII.
PurBuantto this statutory direction. the
Secrelary requiTes tha t grantees
adminiater all programs and actiyities
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related 10 housing and community
developm~nt in a manner 10
effirml\tively further ftlir housing.
(c) Executive Order 11003, as
nmendcd by Executive Order 12259,
direcls the Deportment to toke all action
necessory and oppropriate 10 prevent
discriminolion because of race. color,
religion (creed), HeX, or national origin.
in lhe s!lle. leasing. rental. or other
disposition of residentiol property and
related focilities (including land 10 be
developed for residcntial use), or in the
use or occupancy thereof. if Huch
properly ond rclated focilities ore.
omong other Ihings, provided in whole
or in pari with the Ilid of loans,
odvances. grants. or conlribulions
n~rce\L to be made b)' the Federal
Government. HUD rcgulations
implementing Execulive Order 11003 are
contained in 24 crR Pari 107.
~ 570.602 Secllon 109 olthe Act.
(a) Section lo!l of the Act requires thai
no person in the United Slales shall on
the ground of race. color. national origin
or sex, be excluded from participation
in. be denied the benefits of. or be
subjected to discrimination under. any
program or aclivily funded in whole or
in pari with community development
funds made available pursuant to lhe
Act. For purposes of this section
"program or activity" is defined as any
function conducted by an idenlifiable
administrative unit of the recipient. or
by ony unit of governme~t, ~ubrecipient,
or private conlroctor receiving
cOlillnuni\y developmenl funds or loons
from Ihe recipient. "Funded in whole or
in pari wilh community develcpmelll
funds' meons Ihat community
developmenl funds in a:lY amount in the
form of grants or proceeds from J-JUD .
guaranteed loans have beeD.transferred
by the recipient or a subrecipientto an
idenlifiable adminislrath.e unit and
disbursed in a program ;::r activity.
(b) Specific discriminotory octions
prohibited and corrective octions.
(1) A recipienl may not, under any
program or acti\.ily 10 which the
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reguliJliuns of this Part may apply
direclly or throufh contraclua: or olher
Ilrran~rments. on the ground of race.
color. n<llio"al origin, or Hex:
(i) Deny all)' facilities, services.
financial /lid or other benefits provided
under the program or aclivily.
(ii) Pro\'ide ony facilities, 6en'ices,
financialnid or olher benclils wbich ore
diffcrenl, or ore provided in II different
form from Ihot providcd 10 otherH under
the program or activity.
(iii) Suujectto se.gregaled or separate
lreatment in ony fucilily in, or in a"y
mailer of process relot<;d 10 receipl of
any ser"ice or benefit under the progr<lm
or octivity.
IiI') Restrict in Ilny woy access to, or
in Ihe enjoyment of ony advanlage or
privilegc enjoyed by others in
conncction witb facilities. scrvices.
finoncial oid or olher benefils under the
program or activity.
Iv) Treal an individual differently
from olhers in delermining whelher the
individual 8a lisfies any odmission,
enrollment. eligibility. membership. or
olher requirement or condition which
Lhe individual must meet in order 10 be
provided any facilities. services or other
benefil pro\'ided under Ihe program or
activi:y.
(vi) Deny an opporlunity to parlicipate
in a program or activity as an employee.
(2) A recipient may not utilize criteria
or methods of odministration which
have the effecl of subjecting individuals
10 discrimina lion on the basis of race.
color. nCllional origin, or sex, or have the'
effect of defeating or substantially
impairing accomplishment of the
objectives of the program or aclivity
wilh respecl to individuals of a
particular race. color, national origin. or
sex.
(3) A recipient. in determining Ihe sile
or location of housing or [acililies
provided in whole or in pari with funds
under Ibis part. may nol make selections
of such site or locotion which have Ihe
effecl of excluding individuals from,
denying them the benefits of. or
subjecting them 10 discrimination on the
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gruund of roce. color. nalional origin, or
sex: or which have the purpo~e or effect
of defC'olinR or slIbs\onlia\ly impoiring
the accump\ishmcnt of tbe objectives cf
the Act /lnO of this seCtion.
(4Jlilln adminislering 8 program or
activity funded in whole or in pari wilh
COnG funds regarding which lhe
recipient hos previously discriminoted
ogainsl persons on the ground of race,
color. notionol origin or sex, Ihe
recipient must luke nffirmolive aclion 10
overcome the effecls of prior
discrimination.
(ii) Even in the nbsence of 60ch prior
discriminalion, a recipient in
administering a program or activit)'
funded in whole or in part with conG
Iunds should luke affirmative action \0
ovcrcome the effects of conditions
which wOllld othcrwise resull in limiting
parlicipatiun by persons o[ 0 parlicular
race, color, national origin or sex.
Where previous discriminulory practice
or usage lends. on Ihe ground of race.
color. national origin or sex, to exclude
individuals from participation in, 10
deny them the benefits of. or 10 subject
Ihem to oiscrimina lion under any
program or aclivily 10 which Ihis pari
applies, the recipienl has an obligc:lion
10 take reasonable ection 10 remove or
overcome Ihe consequences of the prior
discriminatory prllclice or usage. and 10
accomplish the purpose of the Act.
(iii) A recipient shell nol be prohibited
by Ihis part from taking any action
eligible under Subpart C to ameliorate
an imbalance in services or facililies
provided to any geographic area or
specific group of persons within its
jurisdiction. where 'Ihe purpose of such
action in to overcome prior
discriminatory practice or usage.
(5) Notwithstonding anylhing 10 the
contrary in this section, nothing
contained herein shall be conslrued 10
prohibil any r~cipienlfrom mainlaining
or constructing Heparate living facilities
or resl room [acililies for the different
sexes. Furlhermore. seleclivity on the
basis of sex is nol prohibited when
instilutional or cllstodiol services can
...
"1
I
APPENDIX E
, ~, i
SECTION 3 CLAUSE
_I
TilE FULLmHNG SECTlO:i 3 CLAUSE SHALL 'SE INCLUDED IN ALL CONTRACTS FUR WORK IN
CONNECTION WITH A SECTION 3 PROJECT:
A. The work 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 lower income
residents of the project area and contracts for work in connection with the
project be a\.larded to business concerns \.Ihich are located in, or o\.lTIed in
substantial part by persons residing in the area of the project.
B. The parties to this contract \.Iill 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 or this cont ract. The
parties to this contract certify and agree that they are under no contractural
oc other disability which would prevent them from complying \.lith these
requirements.
C. The contractor will send to each labor organization or representative of
workers. \.lith \.Ihich he has a collective bargaining agreement or other contract
of understanding, if any, a notice advising the said labor organization of
\.Iorkers' 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 will include this Section 3 Clause in every subcontract for
work in connectiqn with the project and will, 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 will not subcontract with any subcontractor
\.Ihere it has notice or knowledge that the latter has been found in violation .of
regulations under 24 CFR, and will not let any subcontract unless the
subcontractor has first provided it with a preliminary statement of ability to
comply with 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 which Federal assistance is provided,
and to such sanctions as are specified by 24 CFR 135.
E-l
_\ APPENDIX F
NOTICE OF1.-~UlREMENT FOR AFFIR~TlVE ACT11
TO ENSURE EQUAL EMPLOYMENT OPPORTUNI'IT
(EXECUTIVE ORDER 11246)
1. The Offeror's or Bidder's attention is called to the "Equal Opportunity
Clause" and the "Standard Federal Eq~l Employment Opportunity ConstrUc-
tion Contract Specifications" set forth herein.
2. The goals and timetables for minority and female participation, expressed
in percentage terms for the Contractor's aggregate workforce in each
trade on all const-~ction work in the covered area, are as follows:
A. Goals for Female Utilization, All Trades:
AREA COVERED
Goals for Women apply nationwide.
GOALS AND .TIMETABLES
Timetable
Goals
(percent)
From Apr. 1, 1978 until l-iar. 31, 1979.... 3.1
From Apro 1, 1979 until Mar. 31, 1980.... 5.1
From Apr. 1, 1980 until J-ia:::- . 31, 1981. . . . 6.9
B. Goals for P~noritv U~lization:
TA.'1P.b.-ST. PETERSBURG, FLA., AREA
Area coverec: P~llsborough, Pasco, and Pi~ellas
Counties, Fla.
Goals and Timetablesl
Trade
Goal
(percent)
..
All. . . . . . . . . . . . . . . . . . . . . . . . . .
17.9
IFor the life of the project.
~nese goals are applicable to all the Contractor's const-yUction work
(whether or not it is Federal or federally assisted) performed in the
covered area.
The Contractor's cOwpliance wi=h the Execu~ve Order and G~e regulations
in 41 CFR Part 60-4 shall be based on its i~plementation of ~~e Equal
Opport~~ity Clause, specific affi=mative action obligations recruired by
F-l
the specific~tions jec\fort.'1 in 41 CFR 60-4.3(a), an) its efforts to :neet
the goals established for the geographical area ~he~ L~e contract
resulting from this solicitation is to be performed. The ho~s of minority
and feIM-le employment and training must be substantially uniform throughout
the length of the contract, and in each trade, and the contractor shall
pake a good fait.~ effort to employ ~~norities and women evenly on each of
i t.5 projects. The transfer of minori ty or female employees or trainees
from Contractor to Contractor or from project to project for t.~e sole
purpose 0f meeting the Contractor's goals shall be a violation of the
contract, the Executive Order and t.~e regulations in 41 C:R Part 60-4.
compliance with t.~e goals ~ill be measured against the total work hours
performed.
3. The Contractor sha.l1 provide \.Titten notification to the Director 0: the
Office of Federal Contract Compliance programs wi thin 10 .....or}~ing days of
award of any constrUction subcontract in excesS of $10,000 at any tier
for cons trUction work under the contract resulting from this solici ta tion.
The notification shall list t.~e name, address and telephone number of the
subcontractor; ~ployer identification number; estiE~ted dollar amount of
the subcontract; estimated starting and completion dates of t.~e subcontract I
and the geographical area in ~hich the contract is to be perfo~ed.
4. 1'...5 used in this Notice, and in the contract resulting f::-om this solici ta tion,.
the "covered area" is Pinellas County, :lorida.
60-4.3 (a)
EQUAL OPPORTUNITY CLAUSE
During the performance of this contract, the contractor agrees as follows:
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 take affirmat~ve a~tion to e~sure that applicants are
employed, and that employees are treated curing emplo:~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, upg=ading,
demotion, or transfer; rec::-ui tment or recrui t.ment advertising; layoff or
terminatipn, rates of payor other fo~s of compensation; and selection
for training, including apprenticeship. Tne contractor agrees to post
in conspicuous places, available to employees anc applicantS for elllploy-
ment, notices to be provided setting forth the provisions of this non-
discrimination clause.
2. The contractor will, in all solicitations or advertiseDents for employees
placed by Dr on behalf of the contractor, state ~~at all oualified
- ..
applicants will receive consideration for em?loyment wiL~out regard to
race, color, religion, sex, or national origin.
3. The contractor will send to each labor union Dr representative of workers
with ~hich he has a collective bargainir.g agreement or other contract or
~derstanding, a notice to be provided advising the said l~or union or
workers' represeDtatives of the. contractor's co~tments under this
section, and shall post copies of ~~e notice in conspicuous places avail-
able to elllployees and applicants for emplo}'I!lent.
>='-?
... -
" "
'\
C The cont..:'"actor ,,'ill ~"~1~lY ,,'i th all provisions of Exel _ive Order 11246
of September 24, 1965, and of the rules, regulations;- and relevant orders
of the Secretary of Labor.
5. The contractor will furnish all information and reports re~red by
Executive Order 11246 of Septerrber 24, 1965, and by rules, regulations,
and orders of ~~e Secretary of Labor, or pursuant thereto, and will perElt
access to his books, records, and accounts by the adr~nistering agency
and ~~e Secretary of Labor for purposes of investigation to ascertc.in
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
Government 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. l~e con~actor will include ~~e portion of the sentence ~ediately
preceding paragraph (1) and the provisions of paragrap~~ (1) ~~xough (7)
in every subcontract or purchase order unless exempted by rules, regula-
tions, or orders of the Secretary of Labor issued pursuallt to section
204 of ~xecutive Order 11246 of September 24, 1965, so that such provisions
will be bineing upon each subcontractor or vendor. The contractor will
take such action with respect to any subcontract or purchase order as
~~e an~inistering agency may direct as a means of enforcing such provisions,
incl uding sanctions for non-compliance: Provided, however, That in t',e
even~ a contractor ~ecomes involved in, or is threatened with, litiga~ion
with a ?ubcon~actor or veneor as a result of such direction by the
administering agency, the contractor may request the United Sta~es to enter
into such litigation to protect the interests of the United States.
ST.~,N'DJ..F.D FEDERAL EQUAL DlPLOYM.....""NT OPPORTUNITY CONSTP.UCTION CONTAACT
SPECl.FICATIONS (EXECUTIVE ORDER 11246)
L As used in these specifications:
a. "Covered area" means ~~e geog:::-aphical area des cribed in t..lje solici ta-
tion from which this contract resulted.
b. "Director" means Directo:::-, Office. of Federal Contract COIrlplialice
Progr~s, Onited States Department of Labor, or ~~y person to whom
the Director delegates authority.
c. "E!r.?loyer ide:ltifica tion nt:!T'ber" me2J'~ the Federal Social Security
nurrber used on t..lje Employer's Quarterly Federal Tax Return, O. S.
Treasu-ry Depa.r::ment Ferm 941.,
d. "P..inori ty" includes:
F-3
. ~
",
\
(1) Black (all pJksons having origins ~n any of ~ Black
African 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 (.:.11 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 Alas~an Native (all persons having
origins in any of the original peoples of North hmerica and
maintaining identifiable tribal affiliations G~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 constrUction 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 the solicitations from which this contract resulted.
3. It the Contractor is participating (pursuant to 41 CFR 60-4.5) in a
Hometown.Plan approved by G~e O. S. Department of Labor in the covered
area either individually or through an association, its affirmative action
obligations on all work in the Plan area (including goals ~nd timetables)
shall be in accordance with that Plan for those trades ~hich have unions
participating in the Plan. Contractors must be able to demonstrate their
participation in and ccmpliance wiL~ the provisions of any such Hometo~~
Plan. Each Contractor or Subcontractor participating in an approved Plan
is individually required to comply .....i th its obligations under .the EEO
clause, and to make a good fai th e"tfort to achi eve each goal ul')cer the
Plan in each trade in .....hich it has employees. The overall good faith
performance by o~~er Contractors or Subcontractors toward a goal in an
approved Plan does not excuse any covered Contractor's or Subcontractor's
failure to take good faith efforts to achieve the Plan goals and time-
table.
4. The Contractor shall implement the specific affirmative action standards
provided in paragraphs .7.a through p of L'1ese specifications. The goals
set forth in the solicitation from .....hich this contract resulted are
expressed as percentages of the total hours of employment and training
of minority and female utilization the Con~actor should reasonably be
able to achieve in each const-~ction trade in-~ich "it has employees in
the covered area. The Contractor is ex~ected to make substantially
unifo~ progress to.....ard its goals in each craft during the period
specified.
5. Neither the provisions of any collective bargaining agreement, nor the
failuze by a Q~ion .....ith whom the Contractor has a collective barsaining
agreement, to refer either minorities or WOIDE-n shall e.xcuse the Contrac-
tor's obligatior~ Q~der these specifications, Executive Order 11246, or
the regulations promulgated pursuant thereto.
F-4
.6. .l.n or-ocr fer ~-,e ;"';:G;......(;:t...~:-:j ~=a.:.;~.:.Ilg no\..:..IS 0;' drr.;.~;.~...:...~~ G..-;.''':: ._.:..;....~....;t~;;)
t.o be coun t.ed in meeti' t.."-1e goals, such apprentices ?; no ~ainees mus t.
be employed by the c~t Jctor during the training pe::-ioliand the
Contractor must have made a commitment to employ the aftrentices and
, trainees at the completion of their training, subject to the avail~il-
ity of employment opportunities. - Trainees ~ust be trained pursuant to
training programs Approved by the U. S. Department of Labor.
" tf
7.
~e Contractor shall take specific affirmative actions to ensure equal
employment opportunity. ~e evaluation of the Contractor's compliance
.....i th these si.,ecifica tions. 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 follo.....ing:
a. Ensure and maintain a .....orking environment free of harrassment,
intimidation, and coercion at all sites, and in all facilities at
....'hich the Contractor's employees are assigned to ...'or}:. The
Contractor, ....here possible, ....ill assign two or more....'omen to each
constrUction project. The Contractor shall specifically ensure that
all foremen, superintendents, and other on-site supervisory personnel
are awa=e of and carry out the Contractor's obligation to maintain
such a ....orking environment, .....ith specific attention to minority or
female individuals .....orking at such sites or in such facilities.
b. Establish and maintain a current list of minority and female
recruitment sources, provide .....ritten notification to minority and
female recruitment sources and to community organizations .....hen the
Contractor or its unions have empl01~ent opportunities available,
and maintain a record of the organizations' response~.
c. Haintain a current file of the names, addresses and telephone
numbers of each minority and female off-the-street applicant and
minority or female referral from a union, a rec~i~ent source or
community organization and of what 'action was taken .....ith respect
to each such individual. If such individual was sent to t..~e union
hiring hall for referral and ....as not referred back to t..~e Contractor
by G~e union or, if referred, not employed by the Contractor, this
shall be documented in the file .....ith the reason therefor, along with
whatever additional actions the Contractor may have taken.
"\
d. Provide immediate ....ritten notification to the Director when the
union or unions wi~~ .....hich the Contractor has a collective
bargaining ag~eement has not referred to the Contractor a minority
person or ....oman sent by the Contractor, or when the Contractor has
other information that the ~ion referral process has impeded 4t.he
Con~actorts efforts to meet its Obligations.
e. Develop on-the-job training opportunities and/or participate in
training programs for the area ~hich expressly include minorities
and women, including upgrading progr~s and apprenticeship and
trainee programs relevant to the Contractor's emplol~ent needs,
especially those programs funded or approved by the Dep~tment of
Labor. The Contractor shall provide notice of these programs to
the sources compiled under 7b above.
f. Disseminate the Contractor's EEO policy by providing notice of the
policy to unions and training progr~~ and re~uesting L~eir coopera-
tion in assisting the Contractor in ~eeting its EEO obligations; by
including it in any policy ~~nual and collective bargaining agreement; by
F-5
"
'"
t
,
I
.I
publicizing it in the company newspaper, annual report I 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 LEO policy and affirmative
action obligations under these specifications wi~~ all employees
having any responsibility for hiring, assignment, layoff, termina-
tion or OL~er employment decisions including specific review of
these i te.ms wi d. onsi te supervisory personnel such as Superintendents,
General Foremen, etc., prior 'to the initiation of construction work
at any job 5i te _ A wri ttenrecord shall be made and m..aintained
identifying the time and place of these meetings, persons attending,
subject n~tter discussed, and disposition of the s~ject ~~tter.
h. Disseminate the Contractor's EEO poli~' externally by including
it in any ~dvertising in the newS media, specifically including
minority and female news media, and providing written notification
to and discussing the Contractor is ao policy with other Con trac-
tqrs and Subcontractors with whomL~e Contractor does or antici-
pates doing business.
i. Direct its recruitment efforts, both oral and written, to minority,
female and community organizations, to schools ....itl1 minority and
~emale students and to minority and female recruitment and training
organizations serving tl1e Contractor's recruitment area and employ-
ment needs~ Not later than one month prior to L~e date for the
ac~ep~ce of applications for apprenticeship or other training
by any recruitment source, the Contractor shall send ....ritten
notification to organizations such as the 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, suomer and vacation employment to minority and f~~le youtl1
both on the site' and in other areas of a Contractor's workforce.
,;'.
K. validate all tests and oeber selection requirements ....here there
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 fewale perso~~el for promotional opportunities
and encourage these employees to seek or to prepare for, L~ough
ap?ropriate training, etc., such oppor~~ities
m. E~ure that seniority practices, job classifications, work assign-
ments and other personnel practices, do not have a discriminatory
effect by continually monitoring all personnel and employment
rela ted aeti vi ti es to ensure that the SED policy and the Con tractor 's
F-6
obligations undeJ these specifications are being _f- .;ied out.
n. Ensure that all facilities and company activities are non-
segrated except that separate or single-user toilet and
necessary changing facilities shall be provided to Assure
privacy between the sexeS.
o. Document and maintain a record of all solicitations of oflers
for subcontracts from minority and female consL~ction
contractors and suppliers, including circulation of solicitations
to minority and female contractor associations and other business
associa tions.
p. Conduct a review, at least annually, of all supervisors' adherence
to and performance under the Contractor's EEO policies and
affirmative action obligations.
8. Contractors are encouraged to participa te in voluntary associations
which assist in fulfilling one or more of their affirmative action
obligations (7a through p). The efforts of a contractor association,
'joint contractor-union, contractor-community, or other similar group
of \.lhich the contractor is a member and participant, may be asserted
as fulfilling anyone or more of its obliga tions under 7a through p
of these Specifications provided that the contractor actively partic-
ipates jn the group, makes every effort to assure that the group has
a posi ti ve impact on the employmen t of minorities and \Jonen 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, i~ the Contractor's and failure of such
a group to fulfill an obligation shall not be a defense for the
Contractor's noncompliance.
9. A single goal for ~~norities and a separate single goal for ~omen have
been established. The Contractor, however, is required to provide
equal emp~oyment opportunity and to take affirmative action for all
minority groups, both male and fem~le, and all women, both minori~
and non-minority. Consequently, ~~e Cont=actor may be in violation
of the Executive Order if a particular group is employed in a substan-
tially disparate manner (for example, even though the Contractor has
achieved i t.s goals for ....omen generally, the Contractor x:-..ay be in
violation of G~e Executive Order if a specific minority group 04 women
is underutil~zed).
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 ....iG~ ~~y person
or fir:n debarred from Government contracts pllIsuant to Executive
Ord~::; 11246.
F-7
12. The Cont=ac~or shll~ ~arry out such sanctions and I \lties for
viola~ion of these specifications and of the Equallopportunity Clause,
-including suspension, termination and ~ancella~ion of existing sub-
contracts as may be imposed or ordered pursuant to Executive Order
11246, as amended, and its implementing regulations, by the Office
of Federal Contract Compliance Programs. Any Contractor who fails
to carry out such sanctions and penalties shall be in violation of
these specifications and Executive Order 11246, as amended.
13. The Contraco;:or, 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 L~ese specifica-
tions, so as to achieve maximum results from i.ts efforts to ensure
equal emplo)'ll'lent opportuni ty. If the Contractor fails to comply ....i th
the requirements of the Executive Order, the implementing regulations,
or these specifications, the Director shall proceed in accordance wiL~
41 crR 60- 4. 8.
14. The Contractor shall designate a responsible official to ~nitor all
employment related activity to ensure that the company EEO policy is
being carried out, to submit reports relating to the provisions hereof
as rr~y be required by the Government and to keep records. Records
shall at least include for each employee the name, address, telephone
nu.mt>ers, const....ruction trade, uni.on affiliation if any, 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
fOrID.;ho\Jever, to the degree that existing records sa tis fy L'1is
requirement, contractors shall not be required to ~aintain separate
records.
15 _ Nothing he=ein pro\rided shall be cons t::-ued as a limi. t..a tion upon the
application of other laws which establish di=ferent standards of
compliance or upon the application of requirements for L~e hi=ing of
local or other area residents (e.g., those under L~e Public ~orks
Employment Act of 1977 and '~e Corr.m~~ity Development ~lock Grant
Program) .
.
F-8
I
APPENDIX G
OMB
Circular A-110
.1
.
I
J
Office of Management and Budget Circular A-110 (7/30/76)
A-110:1
OFFICE OF MANAGEMENT AND
BUDGET
IClrcular No. A-IIO]
GRANTS AND AGREEMENTS WITH INSTI.
TUTIONS OF HIGHER EDUCATION,
HOSPITALS, AND OTHER NONPROFIT
ORGANiZATIONS
Uniform Administrative Requirements
JULY 1, 1976.
To the heads of executive departments
and establishments.
Subject: Uniform administrative re-
Quirements for gTants and other agree-
ments with institutions of hizher edu-
cation, hospitals, and other nonprofit
organizations
1. Purposc.-This Circular. promul-
gates standards for obtaining consisten-
cy and unlformity among Federal agen-
cies in the administration of grants to,
and other agreements with, public and
private institutions of higher education,
public and private hospitals, and other
Quasi-public and private nonprofit or-
ganizations. This Circular does not apply
to grants, contracts, or other agreements
. between the Federal Government and
units of State or local governments
covered by Federal Management Cir-
cular 74-7.
2. EDective 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. SUPeTsession.-This Circular res-
cinds and replaces parts III and IV of
the Appendix to Federal Management
Circular 73-7. AdministTation of college
and university research grants.
4. Policy intent.-The uniform stand.
ards and requirements included in' the
attachments to this Circular replace the
van'ing 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 belOVo', the stand.s.rds promul-
gated by this Circular are applicable to
all Federa.l agencies. If any statue ex-
pressly prescribes policies Or specific re-
Quirements tha.t dilIer from the stand-
ards provided herein, the provisions of
the statute shall govern.
The provisions of the at.tachments of
this Circular shall be applied to subre-
cipients performing substantive wort:
under gTants that are passed through or
awarded by the primary recipient if such
subrecipients are organizations de-
scribed in paragraph 1.
6. Definitions.
a. The term "grant" means mone\' or
property provided in lieu of money paid
or furnished by the Federal Government
to recipients under programs that pro-
vide financial assistance or that provide
support or stimulation to' accomplish a
public purpose. The term "other agree-
ments" does not include contracts which
are required to be entered into and ad-
ministered under procurement laws and
regulations. Grants and other agree-
ments exclude (a) t.echnical assistance
programs, which provide ~ervice:o. in:o.:cad
_I" ~~~__'
general revenue sharing, 10:l.ns. 10Ul
guarantees. or insurance, and (c) direct.
pA.yment~ of any kind to individuals.
b. The term "recipient" includes the
following types of nonprofit orr:aniza-
tions that are receiving Federal runds
from a Federal agency or through R
state or local government:
Public and private Institut.ions of high-
er education; public and prh'ate hos-
pitals; and other Quasi-public and pri-
vate nonprofit organi7.ations such as (but
not. limited to) community ;l,ction agen-
cies, research Institutes. educational as-
sociations. and health centers,
The term does not include foreign or
interna t.ional organizations (such as
agencies of the United Nations) and
Government-owned contractor operated
facilities or research centers providing
continued support for mission-oriented,
large scale programs that are Govern-
ment-owned or controlled, or are dee,
signed as federally-funded research and
development centers.
7. RCQucsts lor exccptions.-The Office
of Management. and Budget. may grant.
exceptions from the requirements of this
Circular when exceptions are not pro-
hibited under existing laws.
However, In the interest of maximum
uniformity, exceptions from the re-
Quirements of the Circular v:U1 be per-
mitted only In unusual cases. Agencies
may apply more restrictive requirements
to a. class of recipients when approved by
the Office of Management and Budget.
8. Attachments.-The standards pro-
mulgated by this Circular are set forth
in the Attachment.s, which are:
Attachment A Cash .-aeposltorles.
Attachment B BondIng and Insurance.
Attachment C Retention and cust.od.lal re-
quirements for records.
Attachmen.t. D Pr~ram Income.
Att.achment E Cost shnrlng a.nd matcblng.
Attachment F' Standards for !Inanclnl ma.n-
ngement system..s.
Att.achment G Financial reporting require-
ments.
Attachment H Monitoring and reportlng
program pe~formance.
Att.o.chment I Payment requlremr.nts.
Attachment J Re,'islon of flnl\nclnl plans.
Att.a.chmen.t K Closeout procedures.
Attachment L Suspension nnd termination
procedures.
At.tachment M Stnlldarcl. form for appl)'lng
lor federal assistance.
Attachment N Property management stand-
ards.
Attachment 0 Procurement standards.
9. Exceptions lar ccrtain recipicnis.-
Notwithstanding the provisions of para-
graph 7 if an applicant/recipient has a
history of poor performance. is not 11-
nancially st.able. or Its management sys-
tem does not meet the standards pre-
scribed in the Circular. Federal agencies
may impose additional requirement.s as
needed prOVided that such applicant/
recipient is notifted 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 Oroce of Management and
Budget and other agencies funding that
recipient at the same time the recipient
10. RcSPonsibilities.-Agencies re:o.pon-
sible for administ.ering programs Ulat in-
volve grant.s and ot.her agreemenLs with
recipients shall issue the appropriate
regulatlons necessary to implement the
provisions of thi~ Circular. All portions
of such regulations that involve record-
keeping and/or reporting requirements
subject. to the provisions of the Federal
Reports Act and OMB Circular A-40
must. be submitted La OMB for clearance
before ueing introduced int.o use. Upon
request all regulations and instructiom
implemcnting this Circular shall be
fllrni~hed t.o the Omce of Mana"cment
and Budget. Agencies shall also dcsig-
nate an omcial t.o serve as t.he agency
representative on matters relating to t.hl::
!mplementation of this Circular. 'TIle
name and title of such representative
shall be fumL~hed t.o the Office of Man-
:l.gement and Budget. not later than Au-
gust 30, 1976.
II. lnquirics.-Further information
concerning t.his Circular may be obtained
by contracting the Financial Mana{:e-
ment Branch. Budget Review Division.
O!f1ce of Management and Budget,
Washington, D.C. 20503, telephone 395-
3993.
JAMES T. LYNN,
Director.
ATTACHMENT A.--CIRCULAn )./0. A-IIO
CASH DET"OSITORIEfi
1. This attachment sets fo,..th s~l\ndards
governlns the use or banks l\nd otller In-
stl~utlons I'S depositories of lunds l\d"anced
under grants an.d other agreements.
2. Except lor situations described In para-
graphs 3, 4, and 5, no Federal sponsoring
agency shall:
a. Require physical segregation o( cnsh de-
posl torles lor funds which ..re provided to a
reclplenot.
b. Establish any ellslblllty requlr.ements
for cash deposltor!e.s for funds ,,'hlch are pro-
vided to a recipient. '.
3. "- separal.e bank ar.count shall be reqUlre
,,'hen applicable letter-or-credit agreements
provide that drawdowns will be mr.de ,,'hen
t.he reclplent's checks are presented 10 the
bank lor payment.
4. Any moneys advanced to a rcclplent
....hlch are sublc'rt to th~ contr"'!.. or re(;ula-
'.lon 01 the Unt~ed Slates or any 01 Its olflcers.
rgents or employees' (publiC moneys .:s de.
fined In Treasury Clrcula.r No. 1.76, BS
amended) must be deposited In a ban'k with
Federal Deposit Insurance Corporatlon
(FDIC) Insurance coverage and the halance
exceeding the FDIC coverage must be col-
laterally secured.
5. Consistent ,,'Ith the national goal of
expanding the opportunities lor minority
business ent.erprlses. recipients and "ub-
recipients shall be encouraged 'to use mInor-
Ity banks (a bank ,,'hlch Is owned at least 50
pcrcent by mInority group member,,).
ATTACHMENT B.-CIRCOLAR No. A-IIO
BONDING AND INSURANCE
:. This attachment sets forth bond Ins nnd
Insurance requirements ror granls and other
n!;Teemenls ,,1th reclplcnts. No other bond-
tng and lnsura.nce requtremcn,t.s shall be im-
posed other than those normally required by
the recipient.
2. Except as otherwise required by la..... a
grant or other agreement that requires the
contractln& (or subcontractlng) ror con-
strue-tlon or fnclllty Improvements shall pro-
....>, ,__ ...." _...._I_'r---. I" f,"'l~....' ~~r' ,",..'" ,'f'.
I
Office of Management and Budget Circular A-110 (7/30/76)
qulrement.6 relaUng to bid guaranteu, per-
10rm&Ilce bondB, ..nd payment bondB unlees
tbe constructIon eontra.ct or subcontract ex-
<<eds 1100,000. For those ooIlilract.6 or oub-
cont,-.,.cta exceedIng .100,000, the Federal
agency may accept the bonding policY and
requlrementa 01 tbe grantee provided tbe
Yederal agenc)' h.... made' a determlnaUon
tbat the Government'o Interest Lo adequately
protected. 11 ouch e. determInation bllS not
been m&de, tbe minImum requlrementa ohall
be IlS 10110""0:
a. II lri.d vua.rantee Irom ecu::h buuur equiv-
alent to JIve pcrcenl 01 the bll! price.-
The "bid gURran:tee" shall consist 01 a firm
commltment Buch IlS .. bid bond, certified
cbeck, or other negotIable InBtrument ac-
companylnga bid.... assurance that tbe bid-
der will, upon acceptance 01 hL!l bid. exccute
ouch contractu..1 documenlll ... IIUly be re-
quIred within the Ume opecl!ied.
b. II ~rlarman.ce bcmd on the part 01 the
eontrcu::tor Jor ~OO percent 01 the eon I rcu::t
prlce.-A "performAnce bond" Is one executed
In connection with a contract to secure lul-
fillment 01 all the contractor'o obllgatlono
under sucb contrf\Ct,
c, A payment bcmd on the part 01 the con-
trcu::tor lor JOO percenl 01 the con trcu:: t
price.-^ "payment bond" 10 one executed In
connection WI tb a contract to MBure pay-
ment ..... required by law 01 all persona oup-
plying labor ..nd material In tbe execution 01
tbe work provided tor in tbe contract.
3. Where the Federal Government guaran-
tees or IIlBUru th~ repayment 01 money
borrowed by the recipIent, the !"ederel
agency. at Its dlacretlon, may require &de-
quate bonding and 1n.sUrll.nc.e 11 tbe bondlng
and IIlBurance requlrementa 01 the recipient
..re not deemed &dequate to protect tbe in-
terest at tbe P'eder..l Govnnment.
~. The Ped.eral eponsorlng agency may re-
quire &dequate fidelity bond coverage ",'here
tbe recipient bll.!l no coverage and tbe bond Lo
needed /to protect tbe Government'B Interest.
5. Where bonda are required In tbe situa-
tions deacrli>ed above, tbe bonds ohall be ob-
tained lrom companies holding certllles.te<! 01
authority ..... a.eceptable ourdl... (31 CPR
273) ,
AnAclUoa:h"T C.--CIltCU1JJt No. A-ll0
1.rTZ:N"TION' AN"D CUSTODIAL ItLQUDlXWZNT6 rOB
I.ECOK.DS
1. ThLe att&cbment ..et.s tortb record reten-
tion requlrementB lor gTant.6 and other agree-
ment.s wIth reclplent.6. Federal oponsorlng
8.€8n.cles sball not Impoee any record. reten-
tion requirement.! upon rec1plent6 other than
tbO&e descrIbed below.
2. Excell.! lor pe.rag1"&pb 1, this e.tt.achment
also a.ppHes to oubreclplen ts "" reterred to
In paragraph 5 ot tbe b....lc circular.
3. P1ne.nclal recorda, oupportlng document.s
otatL!ltlcaJ recordB, and all otber records pertl:
nent to an e.~ement &haJl be retaJned lor a
perIOd 01 three yeB.n!, wIth the tollO"'1D.f;
qUall!lcatlon.e :
L. 11 any lltlge.lIon, cla1.m or audit Is ot.arted
belore the expiratIon 01 the 3-year perIod the
N>OOrdB &haJl be retained until all IItlgILtions
cla1.ms, or audIt findlnglllnvol,-Ing the reeor~
Mve been resolved
b. ~rds lor n~nexpend..ble property ....-
Qulred wlLh l"-e<lern.1 funds &haJI be retained
lor 3 ye&..r'll &.tIer I t.s Ilna.1 d Ispoeltlon
c. When r"",,orde 8./"e tnlnJIlerred ~ or maJn-
talned by tbe Federa.l ,;ponsonng agency the
~-lyenr retention requirement Is not appilca-
e to tbe recIpient.
~. The reten tlon perIod SUi.oots trom the
date of tbe eubrn1&lon of the !lnaJ upendl-
::nu;;, report or, for gr&DtB and other e.p-ee-
t.s that 8./"e renewed ILnnuaJly trom th
~t.e of the RubmL!l810n of the LOnu.1
Lncjal .tat\U re-port.
5. ~clplent organlzatlona should be au-
thorized br the rederal sponsorIng ...gency.
11 ther &0 desire. to aubstltute mlcronlm
ooples In lieu of onvlIU\1 records.
6. The l"-e<leral ..ponoort.o.g ...gencr ...hall re-
quest transter 01 certain recordo to It.s cw-
tadl' lrom recipIent organl....tlona ",'ben It
determJnes that the records pOMtll3 long-
term retention value. However, In order to
avoid duplicate record -keeping, a Federal
sponsoring agency me.y ma.l<e e.rr..ngemen1.6
wlth recelplent orge.nlzatlons to rela.ln e.ny
recordB that are con tlnuOUBly needed lor
JoInt use,
'7. The head of the Federe.l oponsorlng ...gen-
C). and the Comptroller General 01 the United
Statea. or any of their duly authorlzed repre-
sentatives, Bhall have access to &nl' pertinent
books, doeument.o;, papers, and recorda 01 the
reclplen t orge.nlzatlon and their oubre-
clplenta to [)'lAke a.udltB, exe.mJnatlons, ex-
cerpt.o; and tranBcrlpt.s.
8. Unless otherwise required by la"". no
Federal sponsoring agency "-"lIul plo.ee re-
strictions on recipient orge.n1zatlona that will
limIt public o.ecess to the reoord..'l of recipient
organlzatlOD.6 that e.re pertinent to a grant
or agreement except wben tbe agency Can
demonstrate that such records must be kept
confidential and would have been exupted
Irom dLecI06ure pursu..nt to the :Freedom 01
Information Act 15 U .S.C. 652) U the reeord..e
h&d belonged to tbe Federe.l sponsoring
agency.
AUACHI>aNT D.--Cmcu1JJt No. A-IIO
PIlOGRAM INCO>4X
1. Yederal oponsorlng ~ncleB aball a.pply
the standard..e oet lortb In this e.tts.ohment In
requiring recIpient organlze.tlon.e to account
for program Income related to projectB
Iln.a.nced In wbole or in pe..rt W1th Federal
lunds, Progra.m. Income represents gl'"088 In-
come earned by tbe recipient lrom tbe led-
erally supported a.ctlvltles. Such e&rnlngll ex-
clude Int.erest earned on &dve.nces and may
Include, but will not be llm.lted to, Income
trom ..ervlce leea, eBle of oommodltlea. u"",€e
or rental fees, a.nd royalties on pe.tent.! lUld
coprlgbtll.
2, Interest ee.rne<l on advances of Feder..l
lunds ahe.ll be remitted to the Feder-e.l agency
eX"Cept f or In terest earn ed on ad n.n oetl to
Stale8 or IIlBtnunen.t.a.lltlee ot a State 8.ll pr<r-
vlded by the Intergovernmental Coopera.tlon
Act of 1 P68 (PubUc L.a.w ~77).
3. Prcx:.e<<1B Irom tbe 68.le 01 reo.l lUld per-
llOnaJ property eltber pro,-Ided byUle l"ed-
eral Government or purcba.8ed In wbole or In
pe.rt W1tb Federal tunds. obaJl be be.ndled In
accordance W1th Attachment ~ to tbls clr-
cui8./" pert.a.lnlng to property m.a..DAgement.
{. Unl...... tbe agreement prOVIdes other-
wise, reelplentB ..bBlI have no obllge.tlon to
the P-cderal Government W1tb respect to
royalties received ... a result 01 copyrlgbts or
patent6 produced under the gTant or other
agreement (&eo ps.ra.gT'8.ph B, Attacbment N).
5. All other program Income es.rne<l dur1D.f;
tbe project penod shall he ret.a.J.ned by the
recipient. ..nd, In accord........ce ",'Itb tbe grant
or other a.greement, ahaJl be:
.... Added to lunds cOmm.Jtted to the proJ-
ect by tbe !"ederal apon&Orlng e.gency and
recIpIent organization and be usoo to turtber
eligible pTOgTam objectIves:
b. Used to Ilnance tbe non-Federal &he.re
of the project when approved by tile Federal
spon&OrtD.f; agency; or
c. IX-ducted trom the total project. C06ts
In determlnlr.[ the net OO8t..o on which the
'F'ed ero.l ah e.r. 0: COll ts w III be ba.s.ed.
AnACBWrNT E.--CDlCU1.AJt ~o. A-IIO
COST SH...\.1I}rfC AND ).(ATCHINO
1. Thlll atta.chment o.eta lorth crIteria
pl"OCedur... lor the allo.......bUltT or CJU'.h
I
A-110:2
..nd
n:;'l~
In-kind contributions ma.de by reclplent.o; or
,ubreclplents (..... relerred to In paragTaph 5
01 the b...lc circular). or tblrd partIes In oat-
lofylng ooot oharlng and matcblng require-
ments of Federal sponsoring agencIes. Thl,
attachment e.loo establ1&hee criterIa lor the
evaluatlon of In-kind contrlbutlon.e ma.de by
third partIe., and supplementB tbe guIdance
aet forth In Federal MAnagement Circular
73-3 ",'Il1h respect to cost ,baring on leder-
all)'-oponsored researcb.
2. The lollowlng dellnltlono apply tor the
purpose 01 thll; attacbment:
a. Project COJt..-ProJect coots are all ..1-
lowable C05t.s (a.'l set lorth In tile appllcnble
Federal C05t prlnclpleB) Incurred bl' a recIpi-
ent and tbe value of the In-k.lnd contrlbu-
tlOD.'l made by the reclplen t or third partie'
In accompllshlng the obJectlvee of tbe gran t
or other agTeement during the project or pro-
gram perIod.
b. Co.t .harlnu and matchlnu.-In general,
cost sonrlng and matching represent th..t
portlon 01 project or program coots not borne
by the Federal Government.
c. Ca.Jh contrlbutto1l.'l.--Casb contrlbutlon.e
repre&ent the recipient's ea.8houtlay, includ-
Ing the outlay of money contributed to the
recipient by non-Federe.l third parties.
d. In-kind contrlbutio1u.-ln-klnd contrI-
butions repreBCnt toe value of nones..sh con-
trIbutions provided by tbe recIpient and
non-!"ederal tblrd partl.... Only ....ben au-
Vhorlze<1 by Federal legislatIon. IDAY property
purcb....e<l wltb Federal tunc1.8 beconsldeTed
a.8 tbe recIpient's In-ltJnd contrlbutloDa. In-
kind contrtbutloIlB may be in the lorm 01
cb..rges tor real property a.nd non-exp..nd-
able personal property, e.nd the value of
goods and ...,...,.Ice.e directly bene!ltlng ..nd
Bpeclfically Identlfi..ble to the project or
program.
3. General guidelines tor oomputlng cost
abarlng or matcblng e..re &:l tOUOWE:
a. Cost ahe.rlng or matching IDAY consist
of:
(I) Charges incurred by the recipient a.8
project COStIl. (Not all cha.rges M>qulre ce.sh
outlaY" by the recipient durtngt1be project
period; eXAIDples are deprecIation and uo.e
cbarges tor buU~ a.nd equlpment.)
( 2 ) !'TO J ect COll tB Il n.a..ooed ow1 th ce..sh co n -
trlbuted or donated to the recIpient by other
non-Pederal publlc ~ncles and In.8tltutloDll,
and private Org1LnlzatloDll a.nd individuals,
e.nd
(3) Project COlltB repreBCnte<l by "",...,.Ic:eo
and real and peI'S()nal property, or UBe there-
or. donated by other non-P'ederal public
agencl~ and tIlBtltutloDll, lLDd pru.ate 0l"g1l-
nlzatloIlB a.nd Indl"r1duals. 'I
b. All contribution&, both eas.b a.nd 1n-
kind, &hall be ac.eepted a.8 part of tbe recIpi-
ent', eoet obe.r1Dg ..nd mat.cbing wben ilUcb
contrlbutloD8 meet ..11 ot the tollowtng
crl~rla :
(1) Are verUlable trom tbe recipient'.
records;
(2) An not Included s..o contributions tor
any otber tederally-.....loted program:
(3) Are nece88ary and rea.80nable tor prop-
er and elllclent a.eoompUahment 01 project
ob)ectlve..s;
(~) Are types of cb8./"g-ea that would be al-
lo",...ble under the applicable oost principles:
(5) Are not paId by the P-cderaJ Govern-
ment under another ......Il<t&nce agreement
(unless tbe agreement III authorized by P'ed-
eralla.... to be uae<1 tor eo<<t aluJ"lng or matcb-
Ing);
(6) Are provlde<l lor In tile approved budg-
et wben required by the P-cdero.l agency; and
(7) Con!orm to other proVL!lIOIlB 01 thlll
atL..cbment.
4.. Values tor reelplent in-kind contr1bu-
tlODll will be ""tabll!<bed In aecordanoe wtth
the applla.ble cc>o<t prlDclples.
5. Sr><'cLllc procedUre<! tor the reelplentJI In
~"'Ulhll....hlnC" th,. 't'r.Jl,'" nf' ln~~1T"1t1 ,.."...-.,f1""1h,l_
:..
I
Office of Management and Budget Circular A-110 (7/30/76)
tlons from non-Federal third partles Me set
forth below:
Il. Valuation of "o/unterr .<cTl';ees.-\'olun-
teer servlcoes mol' be furnished by prolesslonal
Ilnd technical personnel. consultants, and
other skilled and unskilled labor. VOh1l1tcer
services mR}' be counted n::; C05t ::;hnrl11g or
mlltchlng If the service Is nn Integral and
necessnry pMt of nn n pproved pro~ram.
(I) Rate.' for uolltnteer seruice,'.-Rntes for
volunteers should he conslstcnt with I.hose
paid for slmllor work In the recipient's
orgnnI7.atlon. In those Instnnces In which the
required skills nre not. Inund in Ihe recipient
orgnnI7.ntlon, rntes should he consistent with
those pnld for similar work In the lnbor mar-
ket In which the recipient competes for the
kind of services Invoh'ed.
(2) Volunteers ","ployed by othcr organ;-
::ations.-When nn employer other than the
recipient furnishes the sen'lces of Iln em-
ployee, these services shnll pc valued Ilt the
employee's regular rnte or pay (exclusl,'e of
Irlnge benefits I\nd overhead costs) provided
these services nre In the sllme skill for whIch
the employee Is normnlly pnld.
b. Valuation of donated, czpendable pcr-
sonal propcrty.-Donllted, expendnble per-
sonlll property Includes such Items as ex-
pendable equipment, olflce supplies, laborll-
tor~' . supplies or workshOp and clnssroom
supplies. Value assessed to expendable per-
sOllal 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 of donated, nonezpend-able
personal property, buildings, and land or
we thereof.
(1) The method used lor chargl ng cost
sharing or matching for donated nonex-
pendable personal property. bulldln!;s and
land may dlller according to the purpose 01
the grant or other ngreement Il.S follows:
(a) H the purpose of the grant or other
agreement Is to assist the recIpient In the
a.cqulsltlon of equipment, buildings or land,
the totl\.l value of the donated property ma)'
be claimed as cost sharing or matching.
(b) H the purpose of the agreement Is to
support activities that require the use of
eqUipment, buildings or land, depreciation
or use charges for equipment and buildings
may be made. The full value of eQuloment or
other capital assets Rnd fair rent~1 chlt/"j,!es
for land ma~' be allowed provided that the
Federal allency has approved the charges.
(2) The val ue of donated property wIll be
determined In accordance with the usual
accountIng policIes of the recipIent wIth the
following QualificatiOns:
(a) Land and bILildings.-The value of
donated land and buildIngs may not. exceed
Its fair ml\.rket value, at the time of donation
to the recipIent as cstabllshed b)' an Inde-
pendent appraIser (e.g.. certlfied real prop-
erty appraiser or GSA representatives) and
certlfled by a responsible olflclal of the
recipient.
(b) NcmeIpend4ble pe,'sonnl pro-pert.u.-
The "Idue of donated non expendable personal
property shall not exceed the laIr market
value 01 equipment and property of the same
age and condition at the time of donation.
(c) Use of spC'..ce.-The vnlue 01 donated
space shall not exceed the fair rental ,'alce
of comparnble space as established b,' Rn
Independent approlsal of companble ~pace
and facllltles In a prlvntely-owned buildIng
In the same locall t~':'
(d) Loaned equiprnent.-The vnlue 01
loaned equIpment shall not exceed Its lair
rent.al \,n)uc.
6. The followIng requlremeuts pertain to
the recipIent's supporUn!; records for In-
k1nd contributions traIn non~Fcdr.ral third
n:::l:-Ur->e
a. Volunteer services musl be documented
and, 10 the extent lensible, supported by the
same methods used by the recipient for Its
employees.
b. The basis for determining the valuation
lor personal sen'lces, material, cqulpment.
bulldlllgs and land must be documented.
ATTACJlMCNT F.--ClRCULAR No. A-lID
STANIlARUS Fon FINANCiAL MANAGEMENT
SYSTEMS
I. TIlls attachment prescribes sll\ndords lor
flnnnclal monagement systems of recipients.
Federnl sponsoring agelltles shall not Impose
additIonal standards Oil recipients unle..., spe-
Cifically provided lor In tbe nppllcable sto-
tutes (e.g.. the Joint FundIng Slmpllflcatlon
Act. P.L. 93-510) or other ntll\chments to this
clrculnr. However. Federal spollsorlng ngen-
cles are eneournged to mnke suggestions nnd
assist recipients In eslballshlng or Improving
fmnnclal lllanILgement systems when such 1l.S-
slstanct' Is needed or requested.
2, Reclplen!." tinonclal management sys-
tems shall provide lor:
n. Accurate. current and complete dlstlo-
sure of the financial results of ench federally
sponsored project or program In accordance
with the reporting requirements set forth In
Att...chment G to this cIrcular. \Vhen a Fed-
eral sponsoring agency requires reporting on
an accrual basis, the recipient shall not be
requIred to estnbllsh an ..ccrual accountlng
,,'stem but shall develop such accrual data
l~r Its reports on the basis of IUl annlysls 01
the documentation on hand.
b. Records that Identify adequately the
source and appllcl\tlon of funds for lederall)"
sponsored actlvl tics. These records shall con-
tain Informl\tlon pertaining to Federal
awards, authorizations, obligations. unobli-
gated balanccs. nssets, outl..ys, and Income.
c. Effective control over and accountability
for all funds, propert~' and other assets. Re-
cipients shall adequatel)' safe!;Uard all such'
assets and sh..1I assure that they are used
solely for authorlz,ed purposes.
d. Compl\rlson of actual outlays with bud-
get amounts for each grant or other agree-
ment. Whenever appropriate or requIred by
the Feder..1 sponsoring agcncy,. fin..nclal In-
formation should be related to perlormanee
..nd. unit cost data.
e. Procedures to minimize the time elapsing
between the transfer of funds from the U.S.
Trcasury Ilnd the disbursement by the recip-
Ient, whcnever funds are advanced by the
Federal Government. When advances nre
made by a letter -of -credIt method, the recip-
Ient shall make drawdov..ns as close as pos-
sible to the time of makIng disbursements.
r. Procedures for determining the reason-
ableness. ..lIo""..blllt)' and alloc..blllty of costs
In accordance with the provisions 01 the np-
pllcable Federal cost prInciples and the terms
of tile grant or other agreement,
g. ACCounting records that are supported
by source documentation.
h. Examinations In the form of audits or
Internl\l audits. Such audits shall be made
by quallfied Indi\'iduals who nre sufficiently
Independent 0: those who I\uthorlze the cx-
penditure of Fede.:,1 funds. to produce un-
biased opinions. conclusions or Judg-rnents.
Thev shall meet the Independence crlterln
Illo";g the Ilnes 01 Chapter 3. Part 3 of the
U.S. General Accounting ornce publication,
Standard' lor Audit of Government:ll Orl;nn-
I,.nlions. Programs. Actl,'ltles and Functions.
T1)cs~ cxanltnntions nrc lnt.ended to a...c.;cer-
Utln the etlectlvcness 0: the financlnl manJ
agemcnt. systems ~nd internal proc.edures'
that have been est.'\bllshed to meet the terms
and C0nditlons 01 the agreement.,. Yt Is not
Intended that each ngreement awarded to the
rcclp\cnt be cxnmlncd. Gcnernlly, cxnmlnn-
t.ton~ should be ~ond\Jctcd Gn an OT(~n.n1z.n-
+l,'n_'.'.'rl.... "H\C:~'" 1n f,..~t thr> fi~rnl 1111("("'':"'11.\' nf
I
A-110:3
financlnl transl\cllons, M wcll as compllnnce
wlLh the terllls and conditions 01 the Federlll
gnn!.< alld othcr agreements. Such tcsts
would include I\n appropriate sampling 01
Federal arreements. Examlnatlolls ",'III be
conducted with reasonable frequency, on a
continuing bILsls or l\t scheduled Intervals,
usunll)' annually, but not less IreQuent.ty thnn
e"er)' two )'ears. The frequcncy of these ex-
nmlnatlons shall dcpend upon the nnture,
S17,c I\nd the complexity of the nctvllty, These
exnmlnatlons do not relieve Federal agencies
01 their nudlt responsibilities, but mn)' aITect
the frequency and scope 01 such audits.
I. A svstemnllc method to aSSure timely and
npprop~lnte rcsolutlon of audll findings and
recommendallons.
3. Prlmnry recipients shnll rcqulre subre-
clplents (I\S defined In pnrngraph 5 of the
basic circular) to adopt the standnrds In
pnragraph 2. I\bove except tor the require-
ment In subparagrllph 2e. regnrdlng the use'
of the letter-ol-credlt method and thnt pILrt
of .s-ubpl\ragraph 2a, regnrdlng reporting
forms l\nd frequencies prescribed In Attnch-
ment, G to this circular.
ATTACHMCNT G.-CIRCULAR No. A-liD
FINANClAL RE:fI'On1""IN'C REQUIREM:E:NTS
1. This atll\chment prescribes unllorm re-
porting procedures for recipients to: sum-
IDarlz,e expenditures mnde Ilnd Federlll funds
unexpended for each award, report the stntus
of FederRI ellsh advl\nced., request advnnces
and rclmbursement when the letter-ol-credlt
method Is not used; ..nd promulgates stand-
nr<'. forms Incident thereto.
2. The following definlllons apply for pur-
poscs 01 this attachment:
a. Accrucd czpenditures.-Accrued ex-
penditures are the charges Incurred by the
recipient during.. gIven period requIring the
provision of funds for: (1) goods and other
tangible propert)' received; (2) servlccs per-
formed b)' employees, contractors, subreclpl-
ents. and otber p"yecs, and (3) other
amounts becoming owed under programs for
whIch no current servlccs or perlormance Is
requIred.
b. Accrued inco1/lc.-Accrued Income Is the
sum of (1) earnln~ durIng a gIven period
lrom (I) servlces.performed by the recipi-
ent: and (11) goods I\nd other tlUlglble
property dell,'ered to purchasers: and (2)
amounts becoming owed to the recipient lor
wh~h no current services or perlonnance Is
required by the recipient.
c. Federal funds authorized.-Federal
funds authorlz,ed ar~ the towlamount of
Fcderal funds obligated b)' the Federal Gov-
ernment for use by the recipient. This
amount mav Include anv I\uthorlzed carry-
over of unobllgated funds [rom prior fiscal
years when permitted by ll\w or agency
regu In tlon.
d. In-kind contribution.s.-ln-klnd con-
tributions are defined In Attachment E to
this circular.
e. Obligation.s.-Obllgntlons are the
amounts of orders placed, contracts and
grnnts awarded, services received, and simi-
lar transactions during n given perIod that
vdll require payment by the recipient during
the s"me or " future period.
l. OILUays.-Outlays or expenditures repre-
sent charges made to thc project or program.
They mny be reported on a cllsh or accru,,1
bnsls. For reports prcpa.red on a cash bl\sls.
ouLla ,'s arc the sum of actul\l cash dlsburse-
mcnt.~ for direct charges lor goods nnd serv-
Ices. the amount of Indirect expense charged.
the ,'aluc 01 In-kind contributions applied,
and the amount of cash ndv"nces "nd pay-
men!., mnde to subreclpients. For reporLs pre-
pared on nn Rccrunl basis, outl"ys are the
stun of A.ctu[\l co.sh dl::;b\lr~cments for dlrect
c.J)~rgc~ for ~()od::; 3.nd ~cr'\'lcc5. the nmount
nf lncl1rc('t ('~~('n~(' tnc.urr"d, the ...nltH" ('If in-
I
\
Office of Management and Budget Circular A-110 (7/30/76)
kind contrIbutions applied, and the net In-
crease .lor decrease) In the amounts owed by
the recipIent for goods and other property
received, tor services pertorme<! bl' employ-
ees, contractor>, subreclplen\.8 and other
payees ..nd other ..moun\.8 becoming owed
under programs tor ,,'hlch no current serv-
Ices or performance are required.
g. Program In.come.-Program Income Is
denned In Attachment D ot tbls circular. It
ma y be reported on a c.....h or accru..1 ba.sls,
whichever Is used tor reportIng outlays.
h. unob/lgaled balance.-The unobligated
balance Is the portion ot the tunds author-
I:r.ed by the Federal spon..orlng agency thl\t
has not been obligated by the recipIent and Is
determined by deducting the cumulative
obligations trom tbe cumulative tunds au-
thorIzed.
L unllqufdaled ob/lgatlo.....-For reporu.
prepared on a cash' bl\8ls, unliquidated obli-
gations represent the'Gmount ot obllgatlons
Incurred by .the recipient that has not been
pl\ld. For reporl.8 prepared on an accrued ex-
pendIture be.sls. they represent the amount
of obligations Incurred by the recipIent tor
whlcb an outll\Y h.... not been recorded.
3. Only the followIng torms ,,'Ill be au-
thorized for obtaining financial Intormatlon
trom reclplenl.8.
a. Financial Status Report (EXhibit 1).
(I) Each rederal sponsoring agency shall
require recipient.!! to use the standardized
Financial StatuS Report to report the status
of funds tor all nonconstructlon projec\.8 or
programs. The Federal sponsorIng agencIes'
may, 1l0wever, have the optlon ot not re-
quiring the F1nanclal Status Report when
the Request tor Advance or Reimbursement
I paragraph 4a) or Report of rederal Ca.sh
Transactlons (paragraph 3b) Is determined
to provide. adequate Informatlon to meet
their needs, except that a final F'lnanclal
Status Report shall be required at the com-
pletion, of the project when the Request tor
Advance or ReImbursement form Is used only
tor advances.
(2) The Federal sponsorlng agency shall
prescrIbe whether the report shall be on a
casb or accrual basis. It the Federal sponsor-
Ing agency requires accrual Intormatlon and
the recIpient's accountlng records are not
normally kept on the accrual basis, the re-
cipIent shall not be required to convert 1\.8.
accounting system, but shall develop such
accrual Informatlon through best estlmates
based on an analysis of the eocumentatlon
on hane.
(3) The Federal sponsoring agency shall
determine the frequenc" of the F1nanclal
Status Report for each 'project or prosram
considering the size and complexity of the
particular project or program. However, the
report shall not be required more trequenth'
than quarterly or less trequently than an'-
nualll' except as provide<! In subpl\ragraph
3a( I) above. A final report shall be requIred
at the completion ot the agreement.
(4) Federal sponsoring agencIes shl\ll re-
quire recipients to submit the FinancIal
Status Report (original and no more than
two c0ples) no lI\ter than 30 days alter the
end of each sp€'clfled reporting period tor
quuterll' and seml-..nnua) reports, and gO
days for annual and final report.!!. Extensions
to reporting due dates mal' be granted upon
request of the recipIent.
b. Report 01 Federol Co.sh Transactions
(Ezhibit 2).
(I) When tunds are ad vo.nced to
recipients through letters of credit or with
Treasury checks, the Federal sponsoring
ayencles shall requIre each recipIent to .ub-
mlt 1\ Report of Federal C..sh TranMCtlons.
The Federal sponsoring I\sency shl\1I u.e this
report to monitor cash lldvl\nced to recipients
I\nd to obtain dlsbursement'lnlormatlon lor
ea.ch agreement from the reelplen\.8.
(2) Federal sponsoring agencies ml\~' re-
quire torecs.sts of Federal cash requirements
In the "Rems.rks" "ectlon of the report.
(3) Wh~n practical ..nd deemed necessary,
the Federal sponsorIng agencies may requIre
reeelp\.8 to report In the "Remarks" ~ectlon
the I\mount ot cash advance. In excess of
three days' requirements In the hl\nds of sub-
recipients and to provide short n..rratlve ex-
planot.lons of ..ctlons tl\ken br the recipIents
to reduce the exceS3 bal ances.
(.) RecipIents shall be required to submit
not more than the orlglnal ..nd two copies of
the Report or Federal Cash TTans..ctlons 15
working da~'s tollowlng the end of each
quarter. The Feder..1 sponsoring ..gencles
may require a monthly report trom those
recipients receIving I\dvance. totaling $1
mUlIon or more per year.
(5) Federal sponsoring agencies ma)' wolve
the requirement for subml!.Slon 01 the Report
of Federal Cash Transactlons when monthly
advances :10 not exceed s 1 0,000 per recipient,
provIded that such adv..nce3 are monitored
through other torms contaIned In.J,hls at-
tJ.chment, or It, In tbe Federal sponsoring
ngenc~"s opinion. the recIpient's accounting
controls are adequ..te to minimize excessl\'e
Federal ndvances.
4.. Except ..s noted below. only the tollow-
Ing torms will be authorized tor the reelpl-
en~3 In requesting advances and relmbur",,-
ments.
a. Request Jor Advance or Reimbursement
(Exhibit J). .
(I) Each Federal spon!orlng agency shl\ll
adopt the Request tor Adv..nce or Reimburse-
ment as a standa.rtllzed torm tor all noncon-
!truetlon programs when letters-ot-credlt or
predetermIned advance methods art not used.
Federal sponsoring ..gencles, however. ha\'C
the option of usIng thl3 torm for construc-
tlon programs In lieu or the Outlay Report
and Re:juest tor Relmburseme:lt tor Con-
struction Programs (subparagraph 4b).
(2) Recipients shall be authorized to sub-
mIt requests tor advances ..nd reimburse-
ments at least monthly when letters-of-
credit are not used. Federal sponsoring
"cencles shall not require the submltslon or
more th..n the orlglnal and two copies of the
Request tor Adv&rlce or Reimbursement.
_I
A-110:4
b. Outlay report and request lor reim.
buru11lent for construction progrom.' (Ez-
hibit 4).
(I) Each Feder.l r.pon!'oOrlng agency 5hl\11
adopt the Outlay Report and Request ror Re-
Imbur.~ement for Construction Programs as
the standardize<! tormat to be ul\ed for re-
questing reimbursement for construction
programs. The FedernJ sponsorlr.g I\gencles
mal'. however, have the option of substitut-
Ing the Request tor Advance or Reimburse-
ment Form (subparagraph 40.) when the
Fede",1 ..gencles determine that It provides
aclequl\t.e InforITU\tlon to meet their need..
(2) Recipients shall be authorized to sub-
mit requests for relmbur.ement at least
montllly when letter.-of-credlt I\re not used.
Federal sponsoring ogencles sh..1I not require
more thon the original I\nd two copies of the
autioI' Report and Request lor Reimburse-
ment for Construction Programs.
5. When the Federal sponsorIng agencies
need additional Inlorm..tlon In using these
torms or more frequent rc.porls, the following
sh..1I be observed:
. a. When addltlonl\l Information l~ needed
to comply wIth legislative requirements,
Federal sponsoring I\gencles sh..11 Issue In-
structions to require recipients to submit
such Information under the "Remarks" sec-
tion of the report.~.
b. When necessar)' to meet specific pro-
gr..01 needs Federal sponsoring agencies shall
submit th-e proposed reporting requirements
to the Flno.nclal Management Branch, Budget
Revle"" Division, Office of Management and
Budget for approval prior to submission of
the reports tor cleaJ"an~ under the pro-
visions of OMB Circular No. A-40.
C. When a Federal sponsoring agency hl\s
determIned that a recipient.. accounting sys-
tem docs not meet the St&rldards tor FI-
nl\ncl"l Manageme:lt contained In ^Uach-
ment F t.O thIS Clrcul..r, o.ddltlonal pertinent
Inform..tlon to further monItor grants and
other agreements may be obtained upon
written notice to the recipient until such
time :lS the system 15 brough t up to standard.
d. The Federal sponsoring agency, In ob-
taining Information as In paragrl\phs a, b
and c above, mus' comply ",'Ith report clear-
ance requlrements of the Office of M..ruge-
ment and Budget CIrcular No. A-40, as re-
vIsed.
6. Federal sponsoring agencies have the
option of shading out any line Item on I\ny
report that Is unnecessary tor decisIon-mak-
Ing purpose..
7: Fede,...J sponsoring agencle~ should ac-
cept the IdentIcal Inlormat\4)n 1rolT> the re-
cIpients In machine usable torml\t ~ com-
puter printouts In Heu of prescribe<! forml\ts.
8. Federal sponsorIng agencle:; may pro-
vide computer outputs to recIpients ,,'hen It
wll1 expedite or contribute to the accurl\cy
of reporting.
9. FedeTPoI sponsoring agencIes I\re author-
17,ed to reproduce these forms. The forms for
reprod IIctlon purposes can be obtlllned from
the Omce of Man3.gement and Budget.
\
I
_I
Office of Management and Budget Circular A-110 (7/30/76)
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_I
Office of Management and Budget Circular A-110 (7/30/76)
INSTRUCTIONS
Please type or prinllegibly. Items 1. 2, 3. 6. 7. 9, IOd. lOe. 109. 10i. 101. lla, and 12 are self.explanatory,
specific instructions for other items are as lollows:
I""" E.l.."
.4 [nttr the employer ldenUnCbtlon number aullne<l by
the U.S. Intemal Reovtnue Service or F'IC[ (Institution)
cod" If required by the F.oer.lspons.oring Asency.
This !Ipece II reurvtod tor en account number or othrr
identitying numb4n the' may be .SlisnPd by the
recipient.
Enter the month, dillY, and ye.' of the berinnlnlR end
Itndln, of thi, proJe-c' period. rOf formula 1,.nU that
If' not .warded on . project baJlJ. ihow the Ir8"'
period.
10 The purpo,.e of vertical columna (el through Cf) Is to
provide fln8nci.1 Olta 'Of f'ach progfllm, fUnction, and
ectlvity in the budrrl as approved by the rederel U)()n.
sorln, areney. If additional columns art needPd, un .,
many eddltlonal torms es nwded and Indlute paRe
number In ,pace- prov'de-d In upper right: however. the
totals of ell progTbms, functions or activities Should be
shown in column (g) of the first pare. For e,r.eme-nts
pertelnlnR to s.everel Cah10g of Federal Oome!.Uc
Assistance pl'1)irams that do not require I further
functional or ectlvtty elenlflca\ion breakdown, enter
under columns (a) through (f) the title of the program.
For 'flints or other auishnce a8rHments containing
muttiple programs where one- or more programs reQuire
z further breekdown by function or activity. use I
M;perate form for each prog",m showing the applicable
functions or activttin In the lep.rate columns. For
,mnts or other .",istance 'EreemanU contllinin8 Sf'V.
ar.1 functions or activities which are funded from
sevenl programs. prepare I 'SIPIr8te form for each
Ilctlvtty or lunctton when requested by the Federt:
aponsoring agency.
lOa Enter the net outlay. This .mount should be the same
as the amount repol"\eod In line 1 Oe of the last report.
If there he. been an adjuSlment to the amount shown
p"""tousty, pleue attach expllnalion. ShO'Wlf zero If this
II the Initial report. -
lOb Enter thlt tolel ,I"08S Pl"Oiram outlays (less rebatet,
refunds. and other dis.counU) lor this ~port period,
Including disbursements of cash realized liS program
income. F04' reports th.t!lt lire p'cpa~ on I euh
basis. outlay,. are the sum of ectual cash disburse-
mPf-:ts tor goods and services. the amount of Indil"f:";'t
expenSe chaf"8ed, the value of In.kind contributions
epplied. end the amount of cash IIdvances and
payments made to contractors end subgnsntcts. For
repons prepa~ on IIn l!lccrued expenditure basis. out.
18~ ere thc sum o! actual cash disbur$emenh. the
amount of lndl~ expense incurred. the va'ue of In-
kind contribution, epplled. end the ne' Increase (or
dKreaM) in the amounts owed by the recipient for
goods and other property received and for services
per10tmee by employees. conlractors, aubgrar1tees, and
ather payees.
J""" E~l.."
lOe [nt~r the amount 01 all progllm Income rullzeO In
this period th.t is reqUlrrd toy Ihe lerms and con.
diltons or the f edelll award to M opducted from total
pN'\Ic-c1. cosh. ror reports pr,n",ed on I cuh bllSls.
enlt'f the amount of cash incC'rne receoived during the
repol"\ing JM'riod. For report' prepere<l on en accrual
buis. enlt!r the emount. ot Income eo.rnr<! since the
be~inning of the rt!portlnE ",.rlod. Whtn the terms or
conditions ellow pro'fem Income to be' edded to the
lotal """'IUd, ..plain In rem.r'M.5. the .ourc~. emounl
end disposllion of Ihe Incoma.
101 Enter amount pertalnl"'. 10 the non.Federal shue of
program ouUaY' 'neluded in the amount .~..n line e.
10h Enter total amount of unliq""ldatif'd obligallons for thIs
project or progrem, indudin, unliQlJldl'1ed obligatio"s
to subgr8nte81 and contractors. UnliQuidate-d obligl'
tions are:
Cash basls.---obllgetions Incurred but not .pllid:
Accrued expenditure bni..--obligalions Incurre<i but
'or which. en outlay ha, not been ~corded.
Do not include any emounls thet have boten Included
on linn II thrr,ugh ,. On the final report. line h should
heve e lero balance.
10) Enter the Fedll!r81 share of unliQuldate-d obliglltlons
shOW"n on line h. The emount shown on this line should
be the dinerence between lhe amoun\s on lines. h end I.
10k Enler the sum of the emounls shown on lines E Bnd J.
If the report 's final the report should not contain any
unllqu)date<S obligations.
10m Enter the unobllgateod balllnce of Federal funds. This
emounl Ihould be tht! difference between lines kind 1.
11 b Enter rate In eftect during the reporting pulod.
11c Enter amount of the ban to which the rate was 21pplie-d.
lld Enter total .mount of indirt'C'l cost eherged during the
report period.
lie E.nter amount of the Federal share charged during the
report period.
If more than one ralt was applied during thf: project
period, lnclude a separate scheOule shOwing bu,es
aeeinst which lhe Indirect cost retes were applied. the
respective IndirKt ratn the month. oay. 21nd year tht
indl~ rales were tn ettect. amounts of indirect u.
pense cher(l:ed 10 the project. end the Federal share of
indirect expense charged to the project to dale.
A-110:6
..
,
I
'')
_I
Office of Management and Budget Circular A-110 (7/30/76)
A-110:7
Approved by Office of ".hn.tf~ment IInd Bud,.t, No. SO-RD 182
FEDERAL CASH TRANSACTIONS REPORT 1. hdenl t.(l(W'I..onnt .r.ncy ."d olll"iulion,1 .le~."t \0 whic~ 'his "port
is lubmin.d
(Sce in..trucliornl on the ba<:k. If report i.. fO'/" mon than one p'ra?lt or
a.uistance agreemc?lt, attach complr.ted Sta?ldard Form !71-A.)
2. RECIPIENT ORGANIZATION .(. hd.,..1 1",,"1 Oil a(~.... id.n'ifitlo 5. RKipil"1'1 Ke'OtH'l1 "..mMr ...
lion numbef io.ntityi"l ""'"WI
NtJ.m~ : 6... L.n.,. af c/IIdil ftumbet 7. lilt pey",."t ,-owch., "v'"~
Nwffth".,. Give t(lta/number for this period
a,ftd Stnrd :
8. P.1'm~"t Vouch." c.r.dill'Cf I. 51. T'Nsury du:c~' rKlivt'd (wk-ttht'r
J'O'I' .cxounl err "-OL dcpO'ltrd)
City, S14t. 10. PERIOD COVERED BY THIS REPORT
Gnd ZIP Cod.:
3. FEDERAL EMPLOYER ~ FROM ("'0,,11>.. cia.,. YI'Or) TO (,,",O"t". da.y )lear)
IDENTIFICATION NO.
a. Cash on hand beginning 01 reporting period $
b. Letter 01 credit withdrawals "
STATUS c. Treasury check payments
11. OF
FEDERAL d. Total receipts (Sum of lines b and c)
CASH e. Total cash available (Sum 01 lines a.JI.nd d)
f. Gross disbursements
(See 8pecific g. Federal share 01 program income
instruction..
on the back) h. Net disbursements (Line 1 minus line 0)
i. Adjustments of prior periods
j. Cash on hand end of period $
12. THE A\10UNT SHOWN 13. OTHER INFORMATION
ON LINE llJ. ABOVE,
REPRESENTS CASH RE. a. Interest income
QUJREMENTS FOR THE $
ENSUING
DaV8 b. Advances to subgrantees or subcontractors $
.
.
14. REMARKS (A ttach addluonal shects 01 plain papCT, il mO'/"e space is required)
15.
CERTI FICA TlON
SIGNATURE
DATE REPORT SUBMITTED
I certify to the best of my
knowledge and belief that AUTHORIZED
this report is true in all re-
spects and that all disburse' CERTIFYING
ments have been made for
the purpose and conditions l OFFICIAL
01 the grant or agreement I
THIS SPACE FOR AGENCY USE
TYPED OR. PRINTED NAME AND TITLE
IArea Cod.c)
(N"",b.r)
(L':z:h...i.o,,)
TELEPHONE
272-101
EXHIBIT 2
STANDARD rORIoI 272 (7-76)
Pr.~ribttd by OHlef! ~f ~..hn1'\i:~m.n\ llnd Bude-et
I
\1
-I
Office of Management and Budget Circular A-110 (7/30/76)
A-110:8
INSTRUCTIONS
P1ea~. type or print legibly. Items 1, 2, 8, 9, 10, lld, lIe, llh, and 15 are self explanatory, specific
Instructions for other items are as follows:
1'-
E"try
3
Enter employer identification number llsslgned by the
U.S. Internal Revenue Service or the FICE (institution)
code.
tf thIs ~port covers more then one grent or other
agreement, lellve Items 4 and 5 blllnk Ilnd provide the
informlltlon on Standard Form 272-A, Report 01 Fed.
erel Cash Tranuctiol\.--continued; otherwis.e;
4
Enter Federal grllnt number, llgreement number, or
other Identifying numbilrs ;1 requested by sponsoring
Ilgilncy.
5
This splice r~rved for an llccount number or other
Identifying number thllt may be assigned by the re-
cipient.
6
Ent., the tetter of credit number thllt Ilpplles to thIs
~port. If all advllnces were mllde by Trellsury check,
enter "N^" lor not llppli~ble and leave items 7 and 8
~nk.
7
Enter the voucher number of the last letter.of.credit
peyment voucher (Form TUS 5401) thllt was credited
to your llccount.
III
Enter the total emount 01 Federal cash on hand at the
beginning 01 the ~porting period including all of the
Federal funds on deposit, Imprut funds. and und&-
po$ited Treasury checks.
llb
Enter tot II I amount of Federal funds /"1IC1lived through
p8yment voucheo (Form TUS 5401) tnat were credo
Ited to your accOunt during the reporting period.
llc
E~ the total llmount of 1111 Feder&! funds received
during the reportio<< period through Treasury checks,
wOethM 0( not d~ted.
Ilf
EP!ter the iota I F~I cash disbursements, mjtM
<louring tn. ~ period, k1<:ludtng cash received
H ~m in~. Disbursements as used here also
Include the amololM of lldvanc~ and payments ~
,-.+ynds to subgrent_s or contnctors, the gross
amount 0{ direct ulariK and WIl€M, including the
Ent".
Item
emplopee's shllre of benefits 'I trellted as a direct cost,
interdepartmentill ch8rg~ for supplies and services,
llnd the amount to which the recipient is entitled lor
Indirect costs.
112' Enter the Federlll shllre of progrllm income that was
required to be used on the project or program by the
terms of the irant or allree~.~nt.
lli
Enter the llmount of all lldjustments pertllinlng to prior
periods llffecting the ending blllllnce that have not
been included in any lines llbove. Identify each grant or
agreement for which Ild)ustment was made, and enter
an explanation for ellch adjustment under "Remarks."
Use plllln sheets 01 pllper If additional splice is required.
llj
Enter the total Ilmount 01 Federal cllsh on hllnd lit the
end of the reporting period. This amount should include
all funds on deposit, imp~st funds, and undeposited
funds (line e, less line h, plus or minus line I).
12
Enter the estimllted number of days until the cash on
hllnd, shown on line II), will be expended. II more than
three days cash reqirements are on hand, provide an
explanation under "Remarks" liS to why the drawdown
wes made premlltu~Iy, or other reasons for the excess
cash. The requirement for the .explanation does not
apply to pres~heduled or automatic adVllnces.
13a
Enter the emount of Interest ellrned on adva nces of
Federal lunds but not remitted to the Federal agency.
If this Includes eny amount earned and not remitted to
the Federal sponsorinlllgency for over 60 days. explain
under "Remarks." Do not report lnt&rest earned on
advances to States.
13b
Enter amount of advllnce to secondary recipients in.
cluded in item llh.
..
'\
14
In addition to providing explanations IlS required above,
,iw lldditiOOllI explllnetion Oeemed necesury by the
reei~nt Ilnd for in-fonrnltion required by the Federlll
sponsoring egency in complillnce with governing legis.
Ilttion. Use plllin sheets of paper if additional SpllCil is
r&quired.
(l'
I
)
.1
Office of Management and Budget Circular A-110 (7/30/76)
A-110:9
FEDERAL CASH TRANSACTIONS REPORT
CONTINUATION
(Thu. I~m u. mm.pl.t.d and alla.hrd to Sla....;"rd F~ t~t ...Iy wh.n
rt.po-rLint1 m.o1't', rhan. on.t prant (tr 0.."'" U tn.n.u' Qpra~nt.)
'Approved by OHlef of Manallemrnt anc, Budget. No.
BO_R0162
1. FEDERAL SPONSORING AGENCY ~ND ORGANIZA.
TIONAL ELEMENT TO WHiCH THI6 REPORT is SUB.
MillED
2.. RECIPIENT ORGANIZATION (Gi'" na.... only a... .holL'n in il.m t, SF 3. PERIOD COVEREL> BY THIS Rtf>oRT (A. .h...'n on SF'
t7l) t7tl
fROM t~oN"'. tla,.. 11_")
TO (H_'''. 114" ,,~4"1
4. list information below tor each trent or other aBreemen1 covered by tnls report. Us.e addllionel forms if more space is reQuired.
FEDE~AL C~MH OR OTHER IOENlIF I RECIPIENT ACCOUNT HU....B[R FEDERAL SHARE OF NET DISBURSEMENTS
CA 'ION OR O1H[R
IOENTlnlNG NUMBER Ner DISBURSEMENTS ( Gro., CUMULATIV[
f3Aow Cl ,vbdiviJiD" bJl other idcrnti- .I'~"'..""'." I.... 1"'"'_''' i_ Hn DISBURSEMENTS
Irmg nllm.b,,.., if ~t:qu.ired by th. (('__ u,........" FOA R[PORTlNG
f .rl..-al Sp.....onnp.A".ncv) PERIOD
(0) Ib) lel (rl)
$ $
,
.
.
\ .
. "'I
5. TOTALS (Should c""""..pon.d lL.ith "",,,unu .h.own on SF ~7t .... I
follo'tL.,: cO~\Lm.n (~) fhe IIQ.TJ1..e Q...'f lint 1'": co/u.'m.n (d) the nL'm of lines
1 I), o"d J II. tlf (hl~.sF 1,7% eM cumulo.tivt dubun'emcnt.! ,hO'Wn. 0"" I $
Lo..1t rtpO'!"t. AHach lI:tpLon.ation of any dilf~reJ'\..Cu..) $
.
2n-..Ol
STANDARD FORM 27<-/.. (7-76)
P..lnJr..c! ~... Olll~.. "I Menoe.."'......' ~r! end....'
Office of Management and BUdgr
"
'.cular A-110 (7/30/76)
.1
it.
Approved by Office 1'1 Men.remenl .nd
Budset, ND. 8O-ROIB3
PAGE
D'
REOUEST FOR ADVANCE
OR REIMBURSEMENT
.. .'r.........u.......
o ADYANCE 0 ~~~TBU"S[.
b. .. ""'" ...~... ...
~AGU
Z. BASIS Of REQUEST
o CASH
I.
TYPE 0'
PAVMENT
REQUESTED
o ~ARnAl 0 ACCRUAL
;.. "ARTIAL "'H:YMENT R[OU~
HUMBER FOR THIS REQUEST
(See '....fntdicnu 0,," b~k)
J. fEDERAL SPONS RIN AGENCY AND ORCANllATlONAL ELEWENT 0
WHICH THIS RU"ORT IS ~B"'"EO
o "NAl
4. (O[RAl GRAHT OR OTHER
IDENTIFYING HUW8E.R ASSIGNED
e'( rEOl RAL AGlNt:'i
L U'PlOYER IDEHTI'ICAnOH
NUMSUI:
. REClPI[NT'S ACC UNf NUM.ER a. PERIOD COVERED BY THIS RE UEST
OR IDE.HlIrYING HUMBER '1lI0W t_u.. "-.. ....1") TO (_tA... M.. .-...)
I. RECIPlEHT OlllGANIUll0N
10. rAY[[ C "......... .. N H _I w .'''''_1 u..- u- I)
H._
N.....
H_'"
..wi Ilu.c
H_'"
..J",,...
c......lr......
...J ur CooN :
e...... Su"
'..J J/I'-~ed. :
11. COMf'lITATlON OF AMOUNT OF REI MBURSEIol EIfTS / All'I AHCES REQUEST1:D ..-
1(01) (&) (e)
. ,
PROGf"MS/FUNCTIONS/ACTIV/TIES ~ TOTAL
.. Tot.1 protfrom (A. .,....t.)
outleys to de.. $ $ $ $
b. lAN: CumuleUve DtOIram income
c. ~~ r;v"m outleY' (Lnu G ...;.....
d. EAtmaled n.t c...h ovtIoY' to. .dy.nc.
period
.. r_' (Sw," ./ lWou. d: d)
f. Hon.F ederal .MAl of amount on NM .
I. F ederaf ,ha.... of amount on line.
h. , lderal p.yment. pr.....iou.1y requested ..
I. ~Ih~'~ now roqunted (L,;,.. p
j. Adwnee< required by ht month
mont h. _n ,"""Hied
by '_rol ~ntDr .S....".
tor uw in makln. ~ 2nd mDnth
Khedwled advancet.
3rd month
1:L
ALTERrtATE COWf'llTAT1OH FOIl AOVAHCES ONLY
.. EWmeled Fed.ro' cash CMJlI.Y'lh.t will be mad. duri"i period COY...:I by the .<lvane.
$
~. Lu.: Estimated bel.nee of Federal eash on hand .. of beIlinning of advance period
c. Amount r~uMted (Lirw a. ......JMU li1W b)
11.
s
CERTIFlCIHION
SIC"'ATURE Of' AUTHORIZED CERTIfYING op"nCIAL
OA T( REOUf:ST
SUBMITTED
I urti1y thot '" th. be>! of my Ilnowtodl"
.~ belief the dela above Ira correct Ind
tn.t III outlaY' were made in accordanet'
with the Inlnt conditions or othet' .,rM.
",em and thlt p.yment il due and has I\at
-.. p_.1y roquNtod.
TY"D OR. ",aNTED NAME AND nTU.
.._ e.4o
It_h_
6.w..,w.
TD.[,.,..OH[
l'hl. op.Ke to. ....-r _
''''-101 EXHIBIT J
IT A14DA.aO I'OflM T10 n -761
~Kf1~d by CH'ft~ of M."....~"' and Ih,a.-t
CIRCuLAR NO. A.ll0
Federal Grants IvIrmsQement Handbook September 1978
A-110:10
'\
.
Appendix I
I
)
_I
Office of Management and Budget Circular A-110 (7/30/76)
A-110:11
INSTRUCTIONS
Please type or print legibly_ Items 1,3,5,9.10, lie, 11e, 11f, l1g, l1i, 12 and 13 are self-explanatory;
specific instructions tor other items are as follows:
Itrm E"e",
2 Indicate whether request is prepared on cuh or ae.
cruf'od expenditure buis.. A.1l reques1l for IId....nces
$hllll be preplI'eod on II c.~h basis..
Enter the federal E,ent number, or other identitying
number ,u.si8ned by the 'Federel lpon"orinE egent)'. II
the advance or reimbun.ement is. for more then on.
Il'rant or other IIl'fHment, Insert Nt"'; then, ,how tht:
.gB'e~.te .mounts.. On ill M'par.t' .heel list .ach
g,ent or .greement number end the federal share 01
outlays made againlt the ,rant or .greement.
6 Enter th. empktyer Identification number IIni~n~ by
the U.S. Internel Rpvenue S4rvice. or the FICE (lnstitu.
hon) code if requested by the Federal arenC)'.
This spltca is rnerved tor an account number or other
k1entityin[ number that may be assigned by the
re<ipienl.
8 Enter the month, day, and year for 'he beginning end
ending of the pe-riod covered in this request. If 'he ,...
Quest is tor en advence or lor both an advance and re-
imbursement, show tn. period that the advance will
cover. If the uQuest Is tor reimbunement, ,how the
p.riod tor which 'he ,eimbunement Is reQuested.
Noh:: The Federal sponsori"e 8gencie. haw the option of
requirinr ~ipiPnls to compte\e items 11 or 12. but not
botn. Ilem 12 Ihouad be uaed wheft only e minimum
amount of intorrnetion is n~ed to mak.. an advance
and outlay information contained In Item 11 can be
obtained tn I timely manner trom other reportl.
11 The purpose of ,he vH1.ieaa columns (e). (b), and (c), is
to ~rov1de ItIoOce tor seperate cost breakdowns w11en a
rro;ect has been plllnn.a and bvd@'eted by prOlrllm,
funclion, or activity. It additional columns are neede<!,
Itrm Enh-v
un 8S many additional torms as nt'e<led and indicate
~.8e numtMr in space pl"OYided in upper rig'ht: ~-
eYer, 'he summary 'otals 01 all prolrams, functions.
or activities should be shown in the "total" column on
the first pale.
118 Enter in "u 01 dllle". the month. day. end year 01 the-
ending 01 the accounting period to whic-t\ thil amount
epplin. Enter program outlays to datf' t,.et 01 relunds.
rebalK, and discounh). in the eppropnate columns.
For requf:'Sh f'repared on I cash buil, OUtlllYS Brt the
.um 01 actual ush disoof'1,.4!me-nls 10f' Roods and WON.
ic~. the amount 01 indirect eJ'pensel charaf!'d. the
value of in.kind conlributiCM:'.' appHe-d, IInd 'h~ amount
of cash advances and payments made to subeO"t",C'
'on end lubrecipit-nts. For n:quesls prepared on en
accrued eJtpen~:hlure basis., oo1l8YS are ,ht s.um of the
actual cash dllbun.ements. 'hI': amounl of Indirect ex.
p<enses inc.urred. and the net Increase (Of' de<rease) In
the amounts oW'll'ed by th. reciJMent 10f goods. and othe1"
pro~rty received and tor lervic" ~rtorme<S by em.
ployees., conltJIcts. lubgrantll'es end other payees.
11 b Ent.r the cumul.tiv~ cash income received to dett. tf
reouects are JWe-pared on a ush bellS. For reque-rtl
prepared on an ecc.ru.o f:x.pendttun bes.is. entttr the
cumuletive income oemed '0 date. Undeor .tth.r basis,
enter only the amoun, epplic.eble '0 prognm income
that ...." required to be u..ed '0( the project 0( pro-
gram by the terTTlt. of the gtllnt or other agreement.
lId Only when milking reQuesh for edvence paym..nts.
enter 'h. total estimated amount 01 cash outlays that
will be mad. during the period cO'w'ered by the advanc..
13 Comptete the certiflcation tMfort submitting 'his
request.
..
...
I
J
"
Office of Management and Budget Circular A-110 (7/30/76)
Appt'Ovrd by Office of Menelement ~nd "AGE 0'
OUTLA Y REPORT AND REQUEST FOR REIM BURSE. Budget. No. So-ROISI rAOU
MENT FOR CONSTRUCTION PROGRAMS 1. l"'YP( 0' IUQUUT I L "ASIS or REQUESl
(S" in.II"'''vdltmJ 0" back) 0 'IHA1- 0 """'IAl o CA~H 0 ACCIltUAl
1. HDERAl ,PONSOAINQ ACC"'CY AND OFtDANllATIONAL ElU,lf.HT TO 4. r[O[RAl GR....NT Oil: OTHER l. ""'11IAl !","VWtNT REQUEST "0.
WHICH 1HI3I R[PORT IS sue),,,ntD IO(NTIr'VIHO HU"48E" ASSIGNED
IY H,O[flAl ACENCT
... ~~~~O(YR[R IOEf'(TlnCAlIOH IT. l[e,.,(NT ACCOUNT 01 OTN," "-.,OD C'O'fD1]) " ntrs IIP'011'
IO{NT1NINQ I'IlUM8Ul
'''0'' CN-u.. ~... ,.-.) 10 IAl~ ..... .-.)
10 R[CIPIENT O,.QAHIl.ATlOH lD.. rAYU . ".~ ..wd,.............. -' U IUw-.j u.- U_ fJ
Ii._ , Ii_ :
IV.. ..4 Ho.~
....... : ...... :
CU.. CU..
St.eu .9041 .51~..c ...,I
rIP C..d.: ZIP COll1_:
11. STATUS or ruNOS
PROG RAMS--rU N CT ION s.---,ACTlVI TI es
CLASSIFICATION (co) (b) (e) TOTAl..
.. AdminlstratNe flxpenu $ $ $ '. $
b. Prellmlnllry expenSol
t, Lend. Itructures. right-of.way
d. An:hiteoctural engineering besle teet I
.. Other erchlle<:tural engin"nng tHI
I. Project In.~lon fen
i. und development
h. ReloceUon expense I
I. Relocation peyments to Individuals end
businesses
). Oemoli'tlon end removal .
k. Construction end projecllmprvvement I
cost
I. E.auip~nt
-
m. Miscellaneous cost
n. Total cumulative to dele (sum o,"lines I I
e thru m)
o. Deductions for program income
p. Net cumulative 10 dl!lte (Line n minus
line 0) .
Q. Federal snl!lr. to date I
r. Rehabilitation grants (100% reim.
bursement)
.. Totel F ederel share (sum of lines Q I
Ilnd r)
t. Federal payments prfviously re.' I I
Quesled
U. Amount ~Quested tor reimbursement 1$ $ S Is
v. Pt"rcent>! of physical complnion of I
project % % % %
12. CERTIFICATION 'IC.......TUR[ 0' A\l'THORIl(D CERTlnlNC DATC REPORT
or'ICIAI. SUBMIT'TlO
I certify that to the best of my knowledRt!
end belief the bUIO<J costs or disburn. e. ReCIPieNT
np[D OR. PAINTeD N"M( AND TITlt TEL[rHOH( IA___ c.od.a.
ments Ire in &ccordal'Jce with the terms ........ ~ .,-.-1
of the project and that the ~imbursement
represents the Federal shUll oue which OAT'[ SICN[O
SIQ,..ArU'l[ 0' AUTHOAll(O C[RlIrYIHC
he. not been previously reQuested' .nd Off ICIA.L
that 8n insPK:tion hos be.n perlormed b. ReClres~ntative
end 811 work i. In accordance with th. c~rtitying to lint
llv. TYPED OR PRINT[.D NAM[ AND TllL[ Ttl(PHON( IAr_ f'".,u
erms of the 8Wii!1rd. ....-.6rr -..r .~l
-
271 101
5TAHO"'-AO '0111o?i 771 0_16)
,........~n..<:" l'~ <.!'\'.o::. ~. .........re.........., .r'I(! fl,u~
EXHIBIT 4
A-110:12
. ...
-.-.,
\
I
"
_I
Office of Management and Budget Circular A-110 (7/30/76)
INSTRUCTIONS
PI~,," type or priotleglbly. l\ems 3. <I, 5. 8, 9, 10, 1 h. and llv aI'V self.....pIM"'tory; specific instructions
tor oth.r It~ms .... as to/IOWI:
h... ........
~.r1( "'e ~~"'fIIt. hol(. H ,t\e reQu~ .. "'"..t. the
&~ ~... ......w ...".,........ .... .....1 ~ of the
~
2 Bkitrw wt'\.th.. awteUf1'ts .,. ~ 8ft ... aceruad
~ndrw,.. ... ..... th..~HI't ~.
, ,...., ""e ."",~, ~n4f~ ..umber ....".cf by
the U.S. l"hrn.1'1'4 R...".".. ~.I'" nel (Nlflttvtion)
ood. W ..qu_ .,. .... food..., _..cyJ.
This tflW'" .. ~ fof an ~nt numb. 84" ethK
I6enlttyln( nu"'- "* .-y M ......... by the
.-I!>I.nl.
II Th. pwpoM to! _I _...... ..~ IhrtKJlfh Ie) 10 to
"...vi'" .,.cw "'"" -...p8n'. --. ~~ wn... .
"rp. p~ h... ......, ,.ae"",.t .wI ~ec1 by pro-
I"''''. ~" fir M1tYttr. " ...,.~ ~mnc ."
~ed. UM _s ""eny .ddttlo.u,' tonne .. ....-ded an04
'-"db'. ....... ......n....r loft, ..... ~ in ..,.... ~
~'. ...... .......mery ..,... .r .N "rotJrwrTK., tv...-
"''''. N .,C'iiVitiM ahould t., ........". in the -'"tota'"
eoIum'l en the in( ,.... All .~ .,.. ,."...-t- ...
. .vmu~ beeM..
11.1 1"_ .~"'" _ndocl !.r....h _I ac tnrwl. legal
_. ....u.1. of _1_ .nd .... _ .clmlnlm.l~
.....6K. kwkrGe tn_ ameunt of lnt'9A11ll ~
'fW'h." .~ by pt"08'r'B"" t.....UOft. AJ.ae .~
\he amount elf ~ ...,.n..... a ..-pe"" ."..-t.
II. _ _ -,ninE" "'" ~ of Iec.Uroc .nd
.~nc. lnelcing Wf'V'RY'S ........ maps.. silllktnC ~
hol... .nd .. _ WQ1< ......1'" prior lD _,
e:.o......::I__.....
He ......... .R .......nts dlrec:tly __ wllh u.. __.
_ of Iond. ....~I Arvcow_ .M .....t.ed t\8t1t-ol.
_.
I kI _ _ _ .... _ to! ...hIt-...1 .....---
1). ~ ~ aft'hlt-.c:tura' ~Pn-ring ~. Do not
Include any _""",,,AO ........ ... line d..
III l_~~___of__,_
---.
11E 1_ -'1-.0_ __....h.... __ of
-..d wIo.... ....e ".-.y ~~ of the ~n! is lend
~_. The .__ _;m~ '" Ie"" ~
...- ~ _ocl ....h -;or _"""_
~ 1M ~.... """"" ..... _teeocy -.nd _",and on
"-k.
llh lnM<____"'~-
~........... .ftd ft.t CO"Jb of ~nt t'Ioeu...
In[ ('-I -l. Do "'" in<1vd. -.._ _od 10<
~io" .omin;M.nniw ...,...-c.: theM .mow....
~ be H.d..0.4 ... ~ _own Oft hIM &.
II i tlMr Mo. .MOun! of _1?0o ...,."...ts ......... .,. ....
~'D\.eont '0 ~a.plaiNd ,..,-..,ol"l~. f.tTTK. bus.in.ess con.
eems.. and ROf\pt'WM 0I'J'8nizftion&.
'0- 6~
111 lrwter If'I'O'J'I ......nn .fIIod ~ m .mploy.... of the
..clP'-l ...d "'~I to ''''rod petty conlnKton clio
IfI8(:Uy ~ in p.rtonninC d~1On or 14I'ft\OYe1 of
stl\JCtL.trWt. '11)f'r\ ~ "-1'IC1. M proc....d. tram the
..... of ~ or 11M ~I of strvc1.u,e' ahouki be
credfted to ,hie ac.count; the-~ "",ectinl ".t
emounob j( ~~ br the r.cteral aQef'l4)'.
Ilk E....' thoM _,""",M.s euocw.ted wtth the ac1ual con.
IIWvctioft 0(. additkM\ MI. or res1orehon of II facility.
Afto. Indudc in this c:atepory. 'he am04Jnh tor "roied.
tm~ IlUCh .s ......,.,..,. 11~'. I.Nieeapt"&.
-1Ictotl....
1)1 [nt_ emotlntJ tef .M equt.."nef't. both fheod .nd may.
abk., ..c",,~ ., 8Q'III1J'fIflfl'n1 u"'C'd klr conatruction. rOf
eL"mpM. penne...ntty .tt~hed iebonlltCHy tabl.... buHt.
"' aoud'o ~ wyd~ ""ovab&. desks. ctwli". and
~ "",,;p..-.
11'" fItMor ttM ~nb IOf aM "'-ma no( ape<.lr.caUy m.n.
--_.
11" [rrt..,. ttM tlotal. cumw'eUve. .l'1'tOOnt '0 date which
-.ould a.. ..... ......... of .nes . .. rouwh m.
11e btter ttw ~ .-noon( of protfrlllm .",come applied '0
ttM ..rant or c:ontraot ~ent ucept Income in.
..-4 ... an. J. tdentHy Of' . MPftnsh Ih..... 01 pape-f
the aouro. and type& .,( ~ 11'tIIBIOm...
11~ ~., ttw fMIIt cumu~ .mount to date which should
be the atnI:MHIC. ~ on NM n minus the .mounl
... tine o.
U..IC I:M... I'M Fedenof she... of'" .~nt IOOllfn on fin. p.
l1r Entec' thoe: ~ 0( ...n.b1lltanon .rant p.eymenh
...0. II) If"Id+v'Wuek ........" pf'Ol',..m '-I'i.tation provtd"
100 ~ ~ .,. lhe food.",1 ...nC)'.
11' Ent... 1M _ _ to! r_",1 porn-ts pr-.vioUIIy
___"_"""'K_h:>r~ir..m.
......--nt..
110. ~ _ _-< now bell\( ..q--- .... -.burN'
..wnt. .".. ~ ~Id k tt'wI .i"~enC4' bortwe_n
the ........... --...., ~ Ii-ne& . . nd t. If dill t'f. nt, u.
~_.----
1'" To M .-nple400d by tho _ oltlclel who is re-
~ ..... ttM opetwho" oi .... P"'8'ntm. Th. d.t."
a.hovI<I be- 1M KtuaJ o.u lhoe totm I. submitted \0 U,.
r.....I._.
12b To be OCIomipI..ted by..... O'ft'lci,..l ~p~,.n'atl.....
'tW'ho .. CM1.H'yinc: '-0 ..... ~n( of prorf-c1 complelion
as ~-.d to( in Vw W1"nta of the .,."t or .r,-....m.nt.
A-110:13
'\
'.
"
I
Office of Management and Budget Circular A-110 (7/30/76)
ATTACHMENT H.-CIRCULAR No. A-I 10
MONITORINC AND REPORTING rf:.OGRAM
rERFORMANCE
1. This attachment sets forth the proce-
dures for monitoring and reporting program
performance of recipients.
2. Recipients 'shall monitor the performa:\ce
under grants and other agreements and.
where appropriate, ensure that time sched-
ules are being met. projected work units by
time periods are being accomplished. and
other performance goals are bel ng achieved.
This review shall bc made for each program,
function. or actlvlt.y of each agreement as set
forth In the. approved application or award
document.
3. Recipients shall submit a performance
report (technical report) for each agreement
that briefly presents the following InformR-
tlon for each program, function, or f\ctlvlt).
Involved as prescribed by the Federal spon-
soring agency:
a. A romparlson of actual accomplishments
with the goals established fo.r the period, the
findings of the Investigator, or both. 11 the
output of programs or projects can be readlly
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 Informatloh Including.
when appropriate, anall'sls 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 Federa.l sponsoring ..gen-
cles and the Financial Status Reports cov-
ering the same period In the frequency estab-
lished by Attachment G of this Circular and.
where approprlnte, .. final technical or per-
formance report alter completion or the
project on a date specified by the Federal
sponsoring agency. The Federal sponsoring
agency shall prescribe the frequency with
which the performance reports wlll be sub-
mitted "1th the rcquest for advance or reim-
bursement when that form Is used In lieu
of the Financial Sh tus Report. Except as pro-
vided for In paragraph 5 below, performance
reports shall not be required more frequently
than quarterl)' or less frequently than an-
nually. Federal sponsoring agencies may
waive the requirement for recipients to sub-
mit performance reports with the financial
reports under the follOWing circumstances:
a. When the recipient Is required t.o sub-
mit a performance report with a continua-
tion or renewal application.
b. When the Federal sponsoring agency de-
termines that .on-slte technical Inspections
and certlfied completion dp.tn will be suffi-
cient to evaluate construction projects.
c. When the Federal sponsoring agency re-
quests annual financial reports on a fiscal
year basis but It Is necessary to get annual
prcgress reports on a calendar year basis.
5. Between the required performan~e re-
porting dates, 'events may occur that have
significant Impact upon the project or pro-
gram. In such Instances, the recipient shall
Inform the Federal sponsoring agency as soon
as the following types of conditions become
known:
a. Problems, del ill'S. or adverse conditions
that will materially aflect the ability to at-
tllln program objectives, prevent the meet-
Ing of time schedules and goals. or preclude
the attainment of project work units by es-
tablished time periods. This disclosure shall
be accompanied b)' a stl\tement of the nctlon
taken. or contemplated, and any Federal as-
sistance Deeded to resolve the sltuntlon.
b. Favorable developments or events thnt
enable time schedules to be met sooner than
anticipated or more work units to be pro-
duced than orlglnRlIy projected.
6. If any performance review conducted
bY the recipient discloses the need for change
I'; the budget estimates In accordance with
the criteria established In Attachment J to
this Circular. the recipient shall submit a re-
quest for budget revision.
7. The Federal sponsoring agency shall
make site ,'Islts RS frequently as practicable
t.o:
a. Review program accomplishments and
management control systems, and
b. Provide such technical assistance as
mRY be required.
8. Federal sponsoring I\gencles shall submit
proposed technical and performance reports
to the Olflce of Management and Bullget for
approval In accordance wi th the report clear-
ance requlrements of OMB Circular No. A--40
as re\'Lsed.
ATTACHMENT r.--CmCUl-AIl No. A-1I0
rA \. M!:NT REQUIReMeNTS
I. This a ttll.Chmen t esta.bJlshes the re-
quired methods of making pl\yments to recip-
Ients. These methods wlll minimize the time
elapsing between ihe disbursement bl' these
recipients and the transfer of funds from the
United States Trellsury to these reCipients
whether such disbursement occurs prlort.o
or subsequent to the transfer of funds.
2. Pal'ments can be made to reCipients
through a letter-of-credit, an advance by
Treasury check. or a reimbursement b)' Treas-
sury check. The followinG definitions apply
for the purpose of this attachmen t:
a. Lctter-o/-Cred.it,-A letttr-of-credlt Is
an Instrument certified by an authorized offi-
ci al of a Federal sponsorl ng agency that au-
thorzes a recipient t.o draw funds when
needed from the Treasury, through So Fed-
eral Reserve bank and the recipient's com-
mercIal bank, In accordance ",'Ith the prOVI-
sions of Treasury Circular No. 1075, as re-
vised.
b. Advance by Trco.sury check.-An ad-
vance bv Treasury check Is a payment made
by a TrclI.5ury check to a recipient upon It.::
request before outlays are made by the
recipient, or through the use of predeter-
mined payment schedules.
c. Rcimbursemenl by Treasury check.-A
reimbursement by Treasury check Is a Treas-
ury check paid to a recipIent upon request
for reimbursement from the recipient.
3. Except for construction grants and
other construction agreements for which op-
tional payment .methods are authorized. as
described In paragraph 5, the letter-of -credl t
method shall be used by Federal sponsoring
agencies If all of the followinG conditions
exist:
a. If there Is or will be a contlnulng rela-
tionship between a recipient and a Federal
spc.nsorlng agency for at least a 12-month
period and the total amount of advance pay-
ments expected to be recel"ed ""Ithln that pe-
riod from the Federal sponsoring agency IS
$250,000 or more. as prescribed by Treasury
Circular No. 1075. For Joint funded projects
the Treasury has authorl2ed a dollar criteria
0:$120.000. .
b. if the recipient has established or dem-
onstrated to the Federal sponsoring agency
the wllllngness and ability t.o maintain pro-
cedures that ",111 minimize the tIme elaps-
Ing between the transfer of funds and their
dIsbursement by the recipient.
c. If the recipient's financial management
system meets the standards for fund control
and accountability prescribed In Attachment
F to this Circular. "Standards for FInancial
Management S)'stems."
~. The method of advancing funds by
TreMur\' check shall be used, In accordnnce
with the provisions of Treasury Circular No.
J
A-110:14
1075, when the recipient meets all of the re-
quirements specified In paragraph 3, above.
except tho~e In subparagraph 31'.
5. The reimbursement by Treasury check
method shall be the preferred method If the
recipient does not meet the requirements
specified In subparagraphs 3b and 3c. above.
At the option of the Federal sponsoring
agency, this method ml\Y also be used on any
construction agree men t, or If the major por-
tion of the prog. Ilm Is accompllshed through
private market financing or Federal loans,
and the Federal assistance constltutes a
mInor portion of the program. When the re-
Imbursement method Is used. the FederuJ
sponsoring a!;cncy shall make payment
within thirty days after receipt of the billing,
unles, the billing Is Improper.
G. When the letter-of-credit procedure I.
used. the reCipient shall be Issued onc con-
solidated letter-of -credl t whenever possible
to cover antlclpRted cash needs for all grants
and other agreements aW!\Tded by the SpOll-
sorlng agency. Likewise, t.o the extent po~sl-
ble. when the advance by Treasury check
method Is used, advllnces. shoulll be Clln-
solltlated (pooled) for all grants and other
agreements made by the sponsoring agency
to that recipient. . ,
7. Unless otherwise required by 11\",', Fed-
ernl sponsoring agencies shall not withhold
paym~nts for proper charges made by recipI-
ents at an)' time during the project or pro-
gram period unless (a) a recipient has failed
to comply with the program objectives, award
conditions, or Federnl reporilng require-
ments; or (b) the recipient Is Indebted t.o
the United States, and collection of the In-
debtedness wlll not Impair accomplishment
of the objectives of a project or program
sponsored by the United States.
Under such conditions, the sponsoring
agency may, upon reasonable notice. Inform
the recipient that payments will not be msde
lor obligations Incurred after a speCified dale
until the conditions are corrected or the In-
debtedness t.o the Federal Government Is
IIquldnted.
ATTACHMENT J.--CmCUl-AIl No. A-1I0
REVISION or rINANCIAL PLANS
1. This attachment sets forth criteria and
procedures to be followed b)' Federal spon-
soring agencies In requiring recipients to re-
port 'devlatlons from financial plans and t.o
request approvals for financial plan re-
\'Islons.
2. The financial plan Is the financial ex-
pression of the project or program as ap-
proved during the application and/or ~ward
process. It may Include either 4he Federa'! and_
non-Federal share. or only the Federal share.
depending 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 appro\'als from
Federal sponsoring agencies when there Is
reason t.o believe that within the next seven
dl\Ys s revision wlli be necessary for the
following reasons:
a. Changes In the scope or the objecth'e of
the project or program.
b. The need for additional Federal fund-
Ing.
c. The transfer of amounts budgeted fcr
Indirect costs to absorb Increases Indirect
costs or ,'Ice versa, U approval Is required
by the Federal sponsoring agency.
d. The expenditures as require appro\'nl In
accordance ,,'Ith F"MC 73~. "Cost Principles
for Educational 1nstltutlons." For all other
awards, appro\'al requirements for other
Items of expenditures may be Imoosed If they
nre consistent ,,'Ith those In F"MC 73~. No
other requirements for specific Items may be
,
.
I
Office of Management and Budget Circular A-110 (7/30/76)
Imposed unless Il devllltlon ha.s been IIp-
proved by the Office of Mllnagement and
Budget.
e. Recipients pllln to trllns1er funds Illlotted
for training allowances (d1rect payments \.0
trainees) to other categories of expense.
4.. None of the substantive programmatic
work under a grant or other Ilgreement may
be subcontracted or translerred wIthout prior
approval of tbe Federal sponsoring agency.
This provision does not Ilpply to the purchase
01 Bupplles. IDJl.terlal, equipment. or general
support services.
5. The Federal sponsor1ng Il{:ency may
Illso, at Its option. restrict translers 01 funds
o.mong direct cost cn.tegorles for aWIU'd6 In
which the Federal sh.n.re exceeds .100.000
when the cumulatIve amount 01 Bucb trl\l16-
fers exceeds or Is expected to exceed II ve
percont 01 Ule total budget as Illst approved
b)' the sponsoring Ilgency. The same criteria
sha\1 a.pply to the cutnula.tlve 1UD0unt of
transfers among prog/"lWlll, functIons, .\Od
aotlvltles when budgeted scparately lor an
I\ward, ex.cept that the Federal sponsorIng
agency &ho.Jl permit no transler that would
clluse Ilny Federal approprln.tlon. or part
thereof, to be used for purpooC6 otber than
thooe Intended.
6. All other changes to nonconstructlon
budgets. except for tbe cbanges described
In pllragraph 8, below, do not require ap-
proval. This Includes the use of recIpient
funds In furtherance of program objectives
over and above the recipient m1n1mum share
Included In the approved budget.
7. For construction ll.wards. recipients
shall request prior ll.pproVRls promptly from
Federal sponsorlng agencies for budget re-
visions wherever:
a. The revision results from changes In
the scope or the objective of tbe project or
program, &Ild
b. The revision Increases the budget
amounts of Federal funds needed to com-
plete the project.
8. When a Federal sponsoring agen::y
makes an award that provides support.tor
both construction and nonconstrllctlon work.
the Federal sponsorIng agency may require
the reCipient to request prior approval from
the Federal sponsoring agency belore m:>kln!;
any fund or budget trAnslers between tlle
two types 01 ....ork supported.
9. For both construction and nonconstruc-
tion awards, Federal sponsorIng agencies
shaJl require recipients to notlly tbe Fed-
eriLl sponsoring agcncy promptly ",'henever
the amount of FeOenUI\utbor\zed funds IS
expected to exceed the needs of the recipient
by more thlln $5.000 or five percent 01 the
Federal Ilward, whichever Is greater. This
n.otlllcll.tlon wUl not be requ1red II appllca-
tlons lor additIonal fundJng are submltte:1
for contlnulng grants or contr8.Cts.
10. When requesUng approval for budget
revisions. recipients shall use the budget
lonns tha.t were used In the appllcatlon
unless a letter request ...111 surnee.
II. WI th In 30 calendar days Irom the date
of receipt of the request lor budget revi-
sions, Federal sponsoring "gencles shall re-
vie".. the request and notify tbe recipient
wh<>ther the budget revisions have been ap-
prove<j. If the revI:<lon Is still under con-
sideration at the end 01 30 CAlendar days
the FC<1erl\1 sponsor1n(; "Cency shall lnfor~
the recipient In wrltinr 01 the da.te when the
rec:\plent ml\Y expect the decl~lon.
ATT"CHMENT K.--CIRcuua No. A-lID
CLOSEOUT rnOCEDURES
1. This atta.chment, prescr1bes untlorm
closeou t proced ures lor Federal (;rnn to and
other agreements with recipients
2. The lollowlng definitions shail apply lor
the purpO&C of thL~ attachment:
a. Cu..eouf.-The CI06COUt of a gTant
agTeement III the proceas by which a Federal
spolUlOrlng ageney detennlnes that all ap-
plicable admlnlst.ratlve 8.CUODS ..nd all re-
qul.rcd work 01 tbe &{:Teement have been
completed by the recIpient and the Pederal
sponsoring agency.
b. Date 01 complehon.-Tbe da~ 01 com-
pletion Is the date on ,,'hlcb all work under
gT1UIl.6 "nd otber &{:Teemen 1.6 Is completed or
the da~ on 'the awurd document. or any
'supplement or amendment tbereto. on which
f'edenU sponsorshIp ends.
c. Duallowed co.I3.-DLsallowed cool.6 arc
those chnrges \.0 a gTant or other II{:reement
that the Pederal spoD...or!ng agency or Its
reprcscntlLtlve determines to be unnllow-
able. In "ccordance with the applicable Fed-
e/"lll cost principles or other conditions con-
tained In tho &{:Teements.
3. All Fe<!erlll sponsoring lI{:enclC!l shall es-
tabllsb clooeout procedures tbat Include the
following requ1rements:
a. Upon request. the )'ederal spon.sorlng
Il[:ency shall make prompt payment.~ to I'
recipient for allownble relmbursnble co.~ts
under the gTo.nt or othcr agTeement being
closed out.
b. The recIpient sbl\ll lmmedh.tely relund
nny balance of unobllgl\ted (unencumbered)
c9Sb that tbe Federnl sponsoring ngency has
o.dvanced or paid and tbat Is not autborlzed
to be relalned by the recipient for use In
other gTants or other agreements.
. c. The Federal sponsorlnt;; agency shall ob-
tain from the recipient within 90 calendllr
days after the date of completIon of tbe
agreement all financIAl. performance. and
otber reports requ1re<!as the condition 01 the
agreement. The Ilgency may grant extensions
wben requested by the recipient.
d. When authorized by the grant or otber
agTeement. tbe Federal sponsorlnl; agency
shall make a settlement for any upward or
downward adjustments to the Federal share
of costs after these reports are received.
e. The recipient shall aecount for Ilny prop-
erty acquired wltb" Federal funds. or re-
ceived from the Government In accordance
wIth tbe provisions 01 Attachment N to this
Circular. Property Management Standards.
1. In the event a final audit ha.s not been
pcr10rmed prior to tbe closeout ol the gTant
or other agreement, tbe Federal sponsoring
"1>geney sbllll retain the rlgbt to recover an
appropr1ate amount after fully considering
the recommendntlons on disallowed coots re-
sulting from the finlllaudlt.
4.. Suspension and termination procedurcs
are contained In Attacbment L to tbls Cir-
cular.
ATT"CHMI:NT L.-CIJlC'l1U1\ No. A-IIO
SUSPENSION AND TERMLNATION PBOC'EDU'JlE.5
1. This Ilttacbment prescr1bes unl!orm
suspension and termln"tlon procedures lor
Federal !;Tants and otber agreements wi tb
re::lplents.
2. The lollowln(; definitions shall apply
fer the purpcse 01 this attachment:
a. Tcrmination.-The termination of a
grant or otber agreement means the can-
cellation of Federal SpOD.~rshlp. in whole or
In pRrt. under nn agTeement at any time
prior to the date of completion.
b. SlL3pen.si.on.-The suspensIon of a gTant
or other agreement Is 1UI action by a Federal
spon.sorlng lI{:ency tbat temporarUy sus-
pends F'cdernl spons~rshlp under the !;Tant
or otber a!;Tee!",ent. pending corrective nc-
tlon by the reelplent or pending a decision
to terminate tbe gTant or otber agTeement
by tbe Federal sponsoring agency.
;3. All FederRI sponsoring a(;encles shall
provide proce<jures to bc followed when a
recipient bas faUed to comply with the terms
_I
A-110:15
of the grant or other agTeement and condi-
tions or standards, When that occurs. the
Federal sponsorln!; agency ml\Y. on rra.son-
able notice to the recipient. suspen,d the
grant or other agTeement. and withhold lur-
ther payments. prohibit the recipient from
IncurrUlg additional obligations of lunds,
pendln(; correctIve action by the recipient. or
a decision to termination In ..ccord&llce with
paragraph 4.. The Federal sponsorln(; agency
shall allow all necessary and .proper costs
that U,e recipient could not reasonablY avoId
during the period of suspension provld~d thl\t
they meet the provisions of the applicable
Federal cost principles.
4.. Federal sponsorl ng agencies shall pro-
vide for the systematic settlement 01 ter-
mInated grants or other Ilgreements Includ-
Ing the following:
a. TCTminati.on lOT cau~e.-The Federal
sponsoring agency rriay reserve the right to
terminate flny grant or other agTeement In
wbole or In part at any time before the date
of completion. whenever It Is determined thl\t
the recipIent has lalled to compl)' with the
condItions of the agreement. TIle Federl\1
sponsoring agency shall promptly not\1)" the
recipient In ",..Itlng of the determination and
the reasons for the termination, to(;ether
....,th the elTectlve date. Pavments made' to
reclplcnts or reeoverles by the Federal spon-
sorng agencies under grl\nts or other agree-
ments termlnnted lor cause "hall be In ac-
cordance wIth the legal rlt;;hts and liabilities
of the parties.
b. Termination lOT conlJenien<:e.-The Fed-
eral sponsoring agency or recipient ma\' ter-
minate grants and other agreements In -;"'hole
or In part when both parties agree that the
continuation ol the project would not pro-
duce benellclal results commensurate with
the further expendIture of funds. The two
parties shall agree upon the termination con-
ditions, Including the elTectlve dl\te and. in
the case of partial terminations. the portIon
to be termInated. The recipient shall 1I0t
Incur ne"" obligations for the terminated por-
tion alter the ellectl\'e date. and shall can-
cel as many outstanding obligations as POE-
sible. The Federal sponsorIng agency shall
allow full credit to the recIpient lor the
Federal share of the noncancellable obliga-
tions. properly Incurred by the recipient prior
to termlnatlon.
ATUCHM.ENT M.-CracUl.oAI\ No. A-I!O
STANDARD FORM FOR A.PPL TING FOR
FEDERAL ASSISTANCE
1. This attachment 4Jromulg..tes a stand-
ard lorm (SF 4.24) to be use<! by publlc and
'prlvate Institutions of higher education,
public and prIvate hospItals and other quasl-
public and private nonprofit organizations as
a face :>heet for flppllcatlons when :>pplylnt;;
for Federal grl\nts under programs covered
by Part 1. Attachment A. OMB Crlcular No.
A-95. In addition. agencIes are parllCulllrl)'
encouraged to etxend the use 01 SF 424 to
common programs ",1th State Ilnd local go\'-
ernments where this lorm Is now required by
FMC 74-7.
2. The SF 424. may also be used. on an op-
tlonl\! basiS. to lulfill the requirements of
OMB Circular A-95 for a notlncatlon of 111-
tent. from appllcant to clenrlnghouses. th:>t
Federal assistance v.11l be I\pplled lor. Local
or State clearinghouse procedures wlll govern
the use of the form lor this purpose.
3. The standard form will also be used Ill'
Federlll agcncles to report to the clellrlng-
houscs on major actions taken on a!,pllca-
tlons reviewed by clearinghouses In accQrd-
ance ,,-Ith OMB Circular A-95. and to notlly
States 01 grants.ln-I\ld av.'I\rded In I\ccord.
ance ....Ith Treasury Circular 1082.
'.
I
I
"
"
Office of Management and Budget CIrcular A-110 (7/30/76)
A-110:16
O"'B Approvol No. l'9-ROUI
ASSISTANCE L M"PlI. I. IlIJW8ER 1. STAn I. l<VWHR
FEDERAL ~Uc-A-
CANT'S nON
I. TYPE 0 PREAPPlICA TlON APPlI. l. o.\Tt I D~N'Tl- l. DArt l.o.r _Ik oIay
Of eAT lOf( t_ .....tI. .... FIUI
ACTION 0 Al'rL ICUIOI( 19 ~SIC"ED 19
(M__".. 0 I( 0T1f ICA TIOl( OF I KrUll ('[)pt.) LH..
,....,.........
...) 0 RU'ORT Of rEDEIW. ACTIOIl l'I4..l
4. LEGAL APPLICANT/RECIPIENT 5. r~DfAAl r:MPLOyr;1I 1000TlPlCATlON NO.
I. ^"pliunl H..... :
l. O"aniutioll U..1t : 6- I I \- 1 I I I
c. SIrHl/P.D. Il<u : PRO. I. "UWBER
d. City .. eo...ty GRAM b. TInE
: :
(Fro,"
f. Slri< : I. ZIP Cod.: r odrrol
b. eonl.., p.....,. lNoM4 ColGID,,1
.. 04 1....,.1...... "'0.1 :
a 7. TilLE AND DESCRIPTION Of ApPLlCANrl PROJ(CT a. TYPE Of ,IlI>P~IOAN'\' {RECIPIENT
E I.-SIoI. ~",u.11y Ai;11... ~
6-1",.,.,,\4 ._ Hirher (cueatioftl1. t-Mtltution
;: C-Subololo ..' ~ Indi", Tribe
~ Oirtrid I\-Olh. (.'l,..n(v):
~nty
E-CIIy
~ f- Wool Dlttrtcl
~ ~r::I~ ,,"rpow E"Lft' _M"""..,..,.,:.oh NUn" 0
~ TYP~ Q.f MSISTANCE
~,l".....t O-mu,~..
~ 8--!ul)C'h.."bf .,.fI( '-Cther X..LH' G"~ ITJ
g C-loe " ~h l..tt.n'(.)
10. AREA or PROJecT Il.4pAC'- (No..... 01 otoU.. .......~. 11. ESTI'i,l."M~ 12. TYPE Of APPUCATlON
S"'kc. .w.) BER T OHI! !.-l<_ t.-R.,;-iJlOf' 1.......'_\011001
IrVIUITING a....R.."....1 ~"\i,,u.atlN. ,.tw.D
E"trr .1'pro~t.
11. p~EO rUNOIN6 I~. CONCRESStoNAL DISTRICT' OF: 1S. TYPE or CHANG'E (Tor l,e.". JJ.41)
fIDfR"'l. I $ I. APPUCAHf .. PRO/m .A-lncn.aLt Doltl" F-{llhor (Sp.elfy):
I. .00 ~1ICt..... 0&111"
A1'PLlCA~T I t-l"c,..... DU,..Utll\
b. .00 O-DK.I..... c.,...Uoa
16. P~JECT START 11. ~JECT i-c.....eel1atiOA
t, STATE .00
DATt r__ -..lA de.. DURATION 1{"t.rr 4ppro. [[IJ
d. lOCAl .00 IP M....Clu prio-w uti.,.!,)
I. OTI1E~ .00 1&. ~nlMATEO DATi: TO 1__ ....,...... d4v 19. EXISTING PEDERAl IDENTIFICATION NUMBER
BE SUBI.4ITTED TO
I. TOTA.!. $ .00 fEDERAL AGENCY ~ 19
20. fEDERAL AGENCY TO RECEIVE REQUEST (N-. Cu,.. ,,-. U/' ..o.J 21. REMARKS ADDED
n v... o No
~ 22. I. 1, th. ~m ... ftT)" knowled.. 'lid .....I'f. ~. H' 1~w4n4 by OMS Cu~.ulat .a.-95 tJ\n Il'1)Clc..tlo.. .., ~In.c. pc.Il")Il,I....t too i". N.'n- R_J"ft"-JI41
(1111 i. Oli. ~p.:jc.lio.n/lPi>liuUOll on .tn.dIOftI th.nln. to Ipproprllh .1"rl",~MS .",d .If '''PO.I.US ." .ruc:Alod: o J>O"U . _t~
g THE k'UI I.d coftKl, !h, doeum@>nl h" .....
APPLICANT duly luthoriu<f .... t... 'oY6("ftl"( - of 0 0
CERTlf'IES tn_ a.roliunl .net the lpelic.aa{ will ~ III
~ i THAT ~ with 'hi .tt.C"MC ...,..w. ~ lite euit&- I2l 8 0
.... anu H. Ippl''Ond.
1 (3) , 0
- '\
~ 23. I I. TYPED KAWf AIIO T1lU ~. IIDPiAT\JRE L DATE SIQ~D
CERTIFYINC1 Y_r ......v. MV'
6 REPRE.
"' 19 1
... SEliTATIYE
;t.4. All UiCY ~E 25.. APPLICA. :r__ ~ ,;,.v
TION
RECElYED 19
26. ORGANIZATlONo'.L UNlT *7. ADI.4INISTAATlVE OrnCE 28- fEDERAL APPLICATION
~ 10ENTlnCATlON
~ 29. ADORESS \~. fEDERAL OF;ANT
~ /DENTlnCA TION
~ 31. ACTION TAKEN lL rUNDm<: y- _oJ. ,;,.~ ).4. :r_r ~ ....v
l 0 AWARDED i S 51 ARTlNG
I. I. r!D~r.\L .00 :U. M:TION DATE ~ 19 DATE 19
0 0 ~. F:UlCTEO l. Al"l'\.tCAIH I .00 v ~TACT fOR AOOITtOHAl tHfQJlMA. 36- l'__ '" ...v. ....
} I .ON (X...... ~ ""'.~ ,.",,,,,b,",,) ENDING
0 c. IlF:T\lllHCD I'O~ c. n....n .00 DATE 19
All EIlDi-Iut1' C. lOM~ I .00 37. REMARKS AODED
~ 0 C. DEfI!RREf> Orml': I
~ .. .00
~ 0 I. WITMDRAWl< f. TOT 10l I s .00 o V.. ONO
I ::-OERAL AGE'fCY I I. I" blill", ....... .rtiaA, .",. C:On'lm.nb. ,ec.~ tro", d.rinrM>uM:S ...,.. ...,.. b. rEDERA.!. ACE~CY ......9' OffiCIAl.
.id.,.e:. fI _''M'" .....pon... a. ctM ...... ,.....oi_ of P~ I, OW6 ca",..hl /0,-9&. (h'G"'. .....d UUJlJrwnw ""'.)
lit .... ..... N' .. ~ ..0..
1.-95 ACTlON
"'T,.'f~"""""' rn....u J'?J rJ,n.... , (\"_-,00;1
I
-I
Office of Management and Budget Circular A-110 (7/30/76)
A-110:17
SECTION IV-REMAAKS (Plecue referen<< tM proper ;um "1.1mb" from Suti.crru I, II M III, if applic4bu)
4- '
STANDARD FORM 424 PAGE 2 (lC-751
I
.'
_I \
Office of Management and Budget Circular A-110 (7/30/76)
A-110:18
GENERAL INSTRUCTIONS
This is a multi.purpose standard form. First, it will be used by applicants as a required facesheet for pre-
applications and applications submitted in accordance with Federal Management Circular 74-7. Second, it will
be used by Federal agencies to report to Clearinghouses on major actions taken on applications reviewed by
clearinghouses in accordance with OMS Circular A-95. Third, it will be used by Federal agencies to notify
States of grants.in.aid awarded in accordance with Treasury Circular 1082. Fourth, it may be used, on an
optional basis, as a notification of intent from applicants to clearinghouses, as an early initial notice that Federal
assistance is to be applied for (clearinghouse procedures will govern).
^PPUCNIT PROCED\,;fiES FOR SECTION I
Applicant will complete all items in Section I. If an Item is not applicablil, write "NA". If lKlditionalllpace is needed, insert
an asterisk ...... and use the remarks section on the back of thll form. M explanation follows for each item:
Item
1. Mark appropriate box. Pl"ll-apptk:atiQo and applica-
tion guidance is in FMC 74-7 and Federal agency
program instructions. No1lflC'ltion 01 intent R\lid.
ance is in Circular A-95 procedures from clear.
inghou~. Applicant will not u~ "Report of Fedcnll
Action" bol(o
2a. ^ppll~nt's own control numbtlr, If deslred.
2b. Dote Section I Is pl"llparad.
3a. Number llslIlgned by State clearinghouse, or If dele-
gated by St2Ite, by areawide clearinghouse. All nil-
QUests ro Federal agencies must c:ontzIin this ldenti.
fiel" if the program is COYened by Circular fo.-J!15 and
required by applicable. State/areawide clearing-
house procedUnl'S. If in doubt, consult your door.
inghous.e.
3b. Dele applicant notified of c1ll(lrtnghouse Id:mtificr.
%-4h. Legal name of applla:nt/roclplent, name of primary
orgllnizational unit ~"hich will undcrtDke thll assist-
ance llctivity, comp:::te eddress of applicant. and
name and telephone number of person who can pr0-
vide further information about this request.
5. Employer identIfication number of applicant as as.
signed by Irrternal Revonue ServIce.
Ga. U5e Catzllog of Federal Domestic Assistance num.
ber assigned to program under which as:sistallC1l is
requested. If more than one program (e.g., }airrt-
funding) wme "multiple" and explain in remaoo.
If unknown, cite Public Lzrw or U.S. Code.
6b. Program t~ from Federal ~talog. AbbnMete If
necessary.
7. Brief title end appropriete description of projact:..
For notificz:tion of intent, corrtinue in ",marks sec-
tion if necessary to convey proper description.
8. Mostly aell-cxplanatory. "City" includes town town.
ship or other municipality. '
9. Check the type(s) of Ilssistance requested. TlMl
definitions of the terms Ilre:
A. Bllslc Grnrrt. An original request for Fedenll
funds. this would not include any corrtribtrtion
provided under II supplemental grant.
B. Supplemental Grerrt. A request to increose a
basic grerrt in cer1:llin ClIses where the eligible
llpplicant cannot supply the required matchins
share of the basic Federal program (c.g., grants
llwarded by the I\ppalachilln R~ional Commis-
sion to provide the applicant e matching shllre).
C. loan. Self explanatory.
Item
10.
11.
12.
D. IMUranal. Setf explanatory.
E. Othel". Explain on rcrn:erks p8ge.
Govemmentar unit when! tHsnificllnt and meaning.
ful impact could be observed. lir>t only largest unit
or unib affected, such as SUrte. county, or city. If
entire unit aftocted, list it nrther than 5Ubunlts.
Edimeted number of persons directly benefiting
from profoct.
Use approprtme code Ie-tter. Definitions are:
A. New. A submittal for the fi~ time for a new
pro;ect.
13.
B. Renewal. M extension for an additional fundlngl
budget period for a project having no projected
completion det.e, but for which Federel support
must be renewed each year.
C. Revision. A modificetion ro project nature or
scoptl which mil)' result in funding change (in.
crease or decrease).
D. Continuet)on. M extension for an &dditlonlll
fundina/budeet period for a pro}ec:t the agency
initially agreed to fund for a definite number of
)'C!l /"'S_
E. !.ugmonbrtiort. A requirement for additional
funds for a project previously awurded funds in
the same funding/budget period. Protect ne.ture
and scope unchanged.
II:Tlourrt requested or to be contributed during ,the
first funding/budget period by each torrtributbr.
Value of in-kind corrtributions will be Included. If
the &ction is a change in dollar amount of an exist-
ing grarrt (8 revision or augmentation), indicate
only the amount of the chllnge. FO( decrea~ en.
close the amount in parentheses. If both basic and
5Uppleniental amounts are included, breakout in
remaoo. For multiple P"'enlm funding, use totals
and show program breakouts in ~8rks. Item defi.
nitionS: 13a. amourrt requested;from Federal Gov.
ernment; 13b, llmourrt applicant will contribute;
13c. Zlffiourrt from State, if applic&rrt is not a State-;
13d, amount from local government. if applicant is
not a I~l govoemment; 13e, 8mourrt from any other
sources, explain in remarks.
Self explanatory.
The district(s) where mast of ectual work will be
ItCCOIll pi ish ed. If clty.wide or Stzlte-wide, covering
severn I districts, write "city.wide" or "State.wide."
Compkrte ooly for revisions [Item 12c), or augmen.
tzrtions (item 12e).
14a.
14b.
15.
STr.NOI\RD FORM 424 PAGE 3 (10-75)
, -
,"
I
-I
Office of Management and Budget Circular A-110 (7/30/76)
A-110:19
Ittlm
16.
17.
18.
Approximate dat~ project expected to bepin (usually
a!>~ietMl with estimated date 01 availability of
funding).
Estimated number of months to complete project
lifter Federal funds ere available.
Estimated dete preapplic.etion/appllcation will be
submittod to Foderal agency If this project requires
clearinghouse rroview. If review not required, this
date would usually be s.l!ma as dote in Item 2b.
Item
19.
Existing Federal Identification number If this II not
II new request and diroctly relates to a previous
Federal action. Otherwise write "NA".
20.
Indic8'te Federal egancy to which thiS request is
llddressed. Street address not required, but do use
ZIP.
21.
Check llppropriate bm. es to whether Section IV of
form contains rement5 end/or additional remarks
are llttachod.
APPLICANT PROCEDURES FOR SECTION II
Ust cleDrinllhous~ to which submlttod and show
In llppropriate blocks the status of their responses.
For more then three clearinghouses, continue In
remeoo section. All written comment~ aubmitted
by or through clearinghouscs must be attached.
Nllme nnd title of lluthorized representative of legal
II pplicant.
Applicants will lllways complete Items 23a, 23b, and 23c. If clearinghouse review Is required, Item 22b must be fully com.
pletod. An explanation lollowa for each item:
Ittlm
23b.
Self explenetory.
23c.
Self explanatory.
Item
22b.
23a.
Note:
Applicant completes only Sections I llnd II. Section
III is completed by Federelegencies,
FEDERAL AGENCY PROCEDURES FOR SECTION III
ttem
24.
Executive department or Independent agency having
program administra,tion responsibility.
Self explanetory.
Primary organizatlonel unit below department level
having direct program management responsibility.
OlTico directly monitoring the program.
Use to Identify non.award ections where Feoderal
grant identifier in item 30 Is not applicable or will
not suffice.
Complete addre3'S of administering office shown in
Item 26.
Use to identify awa rd actions where different from
Federal application identifier In item 28.
Sell explanotory. Use remeoo section to emplify
where appropriete.
Amount to be contribLIted during the fir;t funding/
budget period by each contributor. Velue 01 in.kind
contribvtions will be included. II the ection is e
change in dollar amount of an existing grent (a revi.
sion or augmentation), indicate only the amount of
change. For decreases, enclose the amount in pa-
rentheses. II both basic and supplemental amounts
are included, breakC'ut in remaoo. For multip~ pro'
grom funding, use totels and show program break. '
outs in remarks. Item deronitions: 32a, amount
awarded by Federal Government; 32b, amount ap'
plicant will contribute; 32c, amount frQ(O Stale, if
applicant is not a State; 32d, amount from local
governme:1t if applicant is not a local government;
32e. amount from any othef' sources. explain in
rema rks.
D!lte ilction was taken on this roqu~t.
Date funds will become aV1lilable.
If applicant-supplied information in Sections I and \I needs no updllting or adjustment to 11l the final Federal action, the
Federal agency will complete Soction III only. An explenlltlOQ for each Item lollows:
25.
26.
27.
28.
29.
30.
31.
32.
33.
34.
Item
35.
Name and telephone no. of egency person who can
provide more informlltion regarding this as..s.istance.
Date after which funds will no longer be aV1lilable.
Check approprillte box al to whether Section IV of
torm contains Federal remllrks and/or attachment
of additional remarks.
For use with A-95 action notices only. Name and
telephone of per;on who can llS5ure that appropri.
ate A-95 action hilS been taken-It same as person
shown in Item 35, write "same". II not applicable,
write "NA".
36.
37.
38.
Federal Agency Procedures-special considerations
A. TrellsUry Circular 1082 compliance. Fe4Ierel agency will
essure pro~r completion of Sections I and III. If Sectioil I
is being completed by Federal agency, all applicable items
must be filled in. Addresses of State Information Recep.
tion A8encies (SCIRA's) are provided by Treasury D!lpart.
ment to each agency. This form replaces SF 240, which
will no longer be used.
B. OMB Circular A-95 comp/illnce. Fede/"lll agency will es-
sure proper completion of Sections I, II, llnd III. This form
is required for notifying all reviewing clearinghouses of
major actions on all programs reviewed under ,1,-95.
Addresses of State and ereawide clearinghouses ar~ pro.
vided by OMS to each agency. Substantive differences
between applicant's reqlJest and/or clearinghouse recom.
mendations. and the project as finally awarded will be
explained in A-95 notifIcations to clearinghouses.
C. Specilll note. In most. but not Illi S.vtes, the A-95 State
clearinghouse and the (TC 1082' SCIRA are the same
office. In such cases, the A-95 8wud notice to the State
clearinghouse will fulfill the TC 1082 ll~rd notice reo
Quirement to the State SCIRA. Duplicate notification
should be avoided.
ST"NDARD FOnM 424 PAGE 4 (10-75)
'-
I
. Office of Management and Budget Circular A-110 (7/30/76)
. ATTACHMENT N.--CIRCULAR No. A-1I0
PROPERTY MANAGEMENT STANDARDS
1. Thls nttnchment pre5Crib~s uniform
standards governing manngement of prop-
erty furnIshed by tho Federal Government or
whose CQ6t was chlU"ged to a project sup-
porLed by a FedeTl<l gra.nt or other "~reement.
Federal sponsoring agencies shnll require re-
clplenL' to observe these sta.ndards ullder
grants and other a(;Teements and shall not
Impose addltlonnl requirements unless spe-
clllcalll' required by Federal law. The recipi-
ent mal' use Its own property mnnngement
stnndnrds nnd procedures prOVided It observes
the pro,'lslons of this a.ttnchment. This nt-
tnchment nlso applies to subreclplents as
referred to In pam(;rnph 5 of the basic elr-
culnr.
2. Tho following definlLlons apply for tbe
purpose of thls nttachment:
a. Real propcrty.--lIi.Cnl .property means
land, Including land ImprovementB, sLruc-
tures nnd appurtenlUlces thereto, but ex-
cluding movablo machinery and equipment.
b, Personal propcrty.-Personal propertl'
of any kind except real properLy. It mny be
tnn(;lble-hnvlng physical exlstence, or Intan-
glble-ha.vln(; no physical exIstence, such as
patents, InvenUons and copyrights.
c. Nonezpcndablc pcrson<11 propcrty.-Non-
expendable personal property me8.11S tangible
personal property hl\\'lng a uselul Ille 01
more than one year and an acquisition cost
01 ~300 or more per unIt exempt that recIp-
Ients subject to Cost Accounting Standards
Board regulations mny use the GASB stand-
ard of r-500 per unit and useful lUe of two
)'ears. A recipient may use Its own definitIon
of nonexpendable pcrsonal property provided
that tbo definItIon would at least Include all
tangIble personal property as defined nbove.
d. Ezpend4ble personal property.-Expend-
able personal property refers to all tangIble
personal propert)" other than nonexpendable
property,
e. Erees. propcrty.-Excess property means
propert)' under the con trol of an)" Federal
agency that. as determloed b)" the head
thereof, 15 no lon(;er required for Its needs
or the dIscharge of Its responsibilIties.
1. Acquisitton cost 01 purchased 71071CZ-
pen.dable personal propcrty.-Acqu15ltlon cost
of an I tern of purche.sed Done~pendable per-
sonal propert)" menns the net Invoice unit
price o! the property Incl udlng the cost of
modifications. attachmen ts, acce~sorlcs or
auxUlar)' i\ppnrc.tus necessnry to make' the
property usable for the purpose for which It
was acquired. Other charges such as the cost
of Installation, transportation, taxes. duty
or proLectlve In-transit Insurance. shall be
Included .or excluded from the unit acq ulsl.
tlon cost In "ccorcance with the reclplent's
regular accounting practices.
g. Exempt property.-Exempt property
means tangible per~onal propcrty "cqulred In
whole or In 'part wIth Federal funds. and
title to which ts \lested In the recipient with-
out further obllgntlon to the Federal Govern-
ment except as provided In subpnrl\(;raph 6a
belo,,'. Such u ncondl tlonal vesting of title
wUl be pursul\nt to any Federal legislation
thnt provides the Federal sponsorlnr; "genc)'
with nOequnte authority.
3. Real proper/y.-Each Federl\l spor:sorlng
ngency shnll prescrIbe requIrements for re-
cipients concernIng the use nnd dispositIon
of real property acqulrcd parLly or wholly
under grants or other ngreements. Unle&..'
otherwl$e pro,'lded by stntute. such re'lulre-
nH'nts. as f\. n11ninl\JJn. shall C-O:1t.~J:1 the
rollo"']ng:
a. TItle to real property shall vest In the
recIpIent subject to the condition that the
recipient shall use the renl properL)' lor the
nutllOrLzec purpose of the project,'ns long as
It 15 needed.
b. The recipient shall obtain approval by
the f'edera.l sponsor In!; l1{:ency for the use of
real property In other projects when the re-
cIpIent determln~ that tue property Is no
longer needed lor the purpose of the original
project. Use In other projects shall be limited
to thOl'e under other lederally sponsored proj-
ects (I.e., gra.nt.' or other n.r,reements) or pro-
grnms that have purposes conslsLent with
Lho,," nuthor17.ed for support by the l-~eral
sponsoring arellcy.
c. When the renl property 15 no 101lr,er
needed as provided In 1\ and 1.0 "I>ove, tile
recIpient shall request dlsposltloll Instruc-
tions from the Federal sponsorinG ar,ency or
Its successor Federal sponsorlllG "l:enr.y. The
I.'ederal sponsorlnc ncency SIH.1I observe tile
following rules In the disposition Instruc-
tions:
(I) The recipient IllRY be permitted to re-
tain tI tic after It compensnt.es the Federal
Government In an Rmount computed by ap-
plyln(; the Federnl percentaGe of pMuclpn-
tlon In the cost 01 the original project to the
faIr market value 01 tbe property.
(2) The recipient mRY be directed to "ell
the property under guidelines provided by
the Federal sponsoring a(;ency and pay the
Fcjera.1 Government an amount computed
by applying the Federal percentage of par-
l1clpntlon In the cost of the original project
to the proceeds from &I\Ie (alter deducting
actual and reasonable selling and fix-up ex-
penscs. If an)'. from tbe snJes proceeds).
When the recipient Is authorl7.cd or required
to sell the property. proper snJes procedures
shall be established that provIde for competl-
tlon to the extent practicable and result In
the highest possIble return,
(3) The recipient may be directed to trans-
fer title to the property to the Feder,,1 Gov-
ernment provided that In such CllSCS t.he
recipient shall be entitled to compensatIon
computed by applying the reCipient's per-
centage of partlClpatlon In the cost or lhe
program or project to the current fair ma.rket
value of the property.
4. Fed.eraly-olDncd nonc:z:penda bk personal
propcrty.-T1t1e to federally-owned property
remains vested In the Fe:!eral Governmcnt.
Recipients sha.1I submit ann u all)' an Inven-
tory listing of federa.lly-<>wned property In
their custody to the Federal sponsoring
agency. Upon completion of tbe n.s-reement
or when the property Is no longer needed.
the recipient shall report the property to
the FederaI' sponsoring agency for furtber
n(;ency utlllzntlon.
II the Fedcral sponsoring agency hn.s no
further need lor the property, It shall be
declare:! excess and reported to the ""neral
Services ^dmlnlstrtlon. Appropriate disposi-
tion Instructions w1l1 be Issued to the re-
cipient after completlon of the )-'ederal
Rgenc)" review.
5. Exempt property.-When statutory au-
thority eXIsts. (e.g.. P.L. 8:>-934, 42 U...s.C.
1892) title t.o nonexpendable personal prop-
crt)" acquired with project funds. shall be
'<"este:! In the recipient upon acqUisItion un-
less It IS determined that to do so Is not In
lurtheranee of the objectives of the Federal
sponsorIng acenc)". Wbcn tItle 15 vcste:! In
the reclplcnt. the recipient shall have no
other obllgRtlon or nccountablllty to the
Federal Government for Its use or disposi-
tion except "-, provided In Gn below.
G. O/lLer noncxpen.dable propcrly.-When
other nonexpendl1ble tanclble personal prop-
crt)" Is ncquired b)' a recIpient with project
fllnd~. tl tIc shRll not be tnken by the Fe:!-
cr.'\! G'ot'("rnn1('n~ but shRll l"CSl In thr f"'('-
clplen~ subject \.0 the following conditions:
n. Right to 1ran~/cr tit/c.-For Itcms of
nonexpendnble personnl property h",'lng R
unit ncquisltlon cost of :'1,000 or more. the
Federal sponsoring: ngcncy mRY rC$crvc the
right to trnnsfer the title to Lhe Froeral
J
A-110:20
Government or to a third party named by
lhe l-'cdcraJ QQvcrnmcnt when fiuch t.hlrd
puty Is otherwise eligible under exlstin(;
sLRLuLes. Such reservatlon shnll be subject Lo
Lhe lollowln(; standards:
(I) The propert)" shall be appropriately
Identlfled In the crant or other a(':reement
or otherwise made known to the recipient
In wrltln!:.
(2) The l-'edernl spon.<,Qrlng alienc)' shall
I..,ue disposition In.,tructlons wIthin 120 cnl-
eudnr dnys afLer the end of the Federal Sllp-
porL of the project for which It was ncqulred.
If the Federn! sponsoring agency I ails to i..<ue
dlr.posltlon Instructions within Lhe 120 cal-
emlar day perIod, the recipient shall nppl)"
the sLnndlLrds of subplLra(;Tnpl1$ Gb and GC
lLS npproprlnLe.
, (3) When the Federal sponsorinG RGenc)"
exercises Its riGht to take tltle. the personnl
property shall be subject to the provisions
lur federally-<>wned nonexpendable property
dlscus.o;cd tn para(;Taph 4, above.
(4) Whcn title 15 transferred either to the
Federal Oovcmment or to a third pRrty.the
provisIons of subparagrapb CIc (2) (b) should
1>c followed.
b. Use 01 other tanpible nonezpendable
property lor IDhich the recipicnt ha.s tttle.
(1) The recipient shnll Uhe the propert)"
In t.he project or pro(;T1\IJl lor which It wns
ncqulred as .Iong as needed, whether or not
the project or program contlnues to be sup-
ported by Federal funds. When no longer
needed for the original project or prOj;rnm,
the recipient shall use the property In con-
nectlon with Its other federnlly sponsored
nctlvltles, In the following order 01 priority:
(a) Actlvltles, In the following order of
priorI t y :
(b) Actlvltles sponsored by other Federal
"Cencles.
(2) Sharro usc.-Durln(; tbe time that
nonexempt nonel<pendnble per""nal proper-
t). ts held for use on tbe project or prO(;TRm
for which It was acquired, the recipient
sbn.1I make It available lor use on other proj-
ectB or progrnms If such other use wll\ not
Interfere with the work on the project or
pro(;Tatn for ,,'hlch the property was origi-
nally noqulred. First preference for 6uch
other use shall be gIven to other projects or
profrT&m6 "ponsored by .the Federal agency
that nnanced tbe property; I\Ccond prefer-
ence shall be given to projects or pro (;Tams
sponsored by other Fed"ral ,,(;enCle5. If the
propcrty Is owned by the Pederal Govern-
ment. use on other nctlvltlcs not sponsored
b)' lhe Fede",1 Government 6hall be per-
missIble If authorized by the FederAl agency.
User charges should be cOI1fldcred I} llpprO-
prlate.
c. Dupo.rition 01 other noncrpendf'ble
property.-When the recIpient no longer
needs the property as prOVided In 6b above,
the property may be used for other "cti';I-
ties In accordance wIth the lollowlng stand-
ards:
(I) Non.crpend4ble property with a unit
acqui..;tion co.t 01 les. than SI.OOO.-TIle re-
cipient may use the property for other ncllvl-
tics ",1thout relmbur"ement to the Federnl
Government or sell the property nnd rc-
taln thc proceeds.
(2) Noncrpcndable personal -proper/ywith
o unil acquuition cosl 01 S1.000 or more.-
The reclplcnt may retnln the property for
other uses provldcd that compensntlon 15
mnde to the original Federnl sponsorIng
a{;ency or Its successor. The amou n t of com-
pell""tlon shall be computed by arplylll[:
the percent_"ge 01 FWernl p,..,.tlclr,,:I01l In
the cost of the orlglllRI project or progrnm to
the current Inlr mnrket vnlue 01 the proper!)'.
I r the recIpient hn.s no need for the property
n.nd t.he properly hns further use val uc. the
recipient shnll rNluest dispositIon InsLruc-
tlons from tbe orlgl ual sponsor! n(; abency.
"
I
Office of Management and Budget Circular A-110 (7/30/76)
The re<1eO\I spon.orlng agency shall dtter-
mine whether the property can be \l~ed to
meet the agency', requirements. J[ no n.
qUlrement exist.. within that agency. the
av..llablllty ot the property shall be report-
ed to tla Gener..1 Services Admlnl.tratlon
by the Fede,.,.1 agen"y to determine ....hether ..
requIrement tor the property exists In other
Federal agenele.. The Federal sponsoring
asency shall Issue In..tr\lctlon" to the recipi-
ent no Inter than 120 dny" a!ter the reclpl-
ent's request nnd the tollowlng procedures
.hall govern:
(a) J[ "0 Instructed or If dl,po,ltlon In-
strucllons are not I""ued within 120 calen-
dM dny' ntter the recipient', request. the
recipient shall ,ell the property alld reim-
burse the Federal "ponsorlng agency nn
nmount computed by applying to the sales
proceeds the percenlf'ge ot !"edcrnl partici-
pation In the cost ot the orlglnnl project or
pro.rnm. However, tl,e recipient shall be
permitted to deduct nnd retain lrom the !"ed-
.rnl share lIDO or ten perccnt ot the pro-
ceeds. whichever Is grenter. tor the reclplent's
selling nnd handling expenses.
(b) If the reclpl.nt t. Im.tructed to shIp
the property elsewhere, the recipient shnll
be reimbursed by the benentlng Federal
agency "dth an ..mount which Is computed
by applying the percent.nge ot the reclplent.s
partlclp..tlon 10 the co.t ot the original grnnt
project or program to the current tnlr market
value ol the property, plus !lny rensooable
shipping or Inter1m stornge costs Incured.
(c) 1f the recipIent Is Instructed to other-
wise dispose ol the property. the recipient
..h..lI be relm bursed by th e Feder..1 sponsor-
Ing ..gency lor auch costs Incurred In Its
dt.'posltlon.
d. Property managemcnt .tandard. jor
nonerpendable property.-The recipient's
property man..gement stand..rds tor nonex-
pend..ble person..l property "1all loclude the
loll owing procedural req ulrcmen ts:
(1) Property records shall be malnt..lned
accura tell' ..nd sh..lllnclude:
(..) A description ot the property.
(b) M..nulacturer's serl..l oumber, model
number. Feder..l Block number. n..tlonal
stock number, or other Identlncatlon num-
ber.
(c) Source ol the property. Including
gr..nt or other SSTeement number.
(d) Whether tltl. vests In the recipient or
the Feder..l Oov~ment.
'(e) Acqulsltloo d..te (or dl\te received. Il
the property"''''' furnIshed by the Federal
Government) and cost.
(f) PerceDtage (..t the end ot the budg.t
yo..r) ol Federal p..rtlclpatlon In the cost o(
the project or progr..m tor ,,'hleh the prop-
erty ...'as ..cqulred. (Not ..pplle..ble to prop-
....ty lurnlshed by the Federal Government.]
(g) Loc..tlon. u..e I\nd condItion 01 the
property and the d.. te the Inlormatlon w..s
r.port&<!.
(h) Unit ncqulsltlon cost.
(I) Ultlmnte disposition dat.o.. Including
date ol dlspo....l ..nd ""les price or the me~hod
used to determine current 1..lr ml\/"ket v..lue
....here .. reclphnt compens..tes the Fedeal
&ponsOrln!; ..sency lor Its share
(2) Property owned by the Tedeal Gov-
ernm.nt mu.ot be ml\/"ked to Indlc..te Ted-
.r..l ownership.
(3) A physiCAl Inventory 01 property shl\ll
be t..ken ..nd the re..ults recooclled ""Ith the
property recorcl.s ..t le...~t once eVerv two
yeR.rs. Any dlnerenc.. between qu..ntlties de-
termined by the physlCR.l Insp.ctlon and
thqse shown In the accounting records ..h..ll
be InvestlgRted to determine the CR.u,e. 01
the dltrerence. The recipient .h..ll. In connec-
tion wIth the In,'entor)'. verlly the existence.
current utlll..7.stlon. I\nd contlnued n.ed lor
tho prop. rt)'.
(4) A control IIl"to.m shl\ll be In e:Tect to
1nlurr adequate la1_t;'unrds t.o pre"rn~ l~,
d..mage. or theft ot the propertl'. Any 10M.
dl\mage. or theft 01 nonexpendnble proprrty
shl\ll be Invesllgnled nnd tully documented;
II the property wl\& owned by the Tederal
Government. the recipient shRll promptly nO-
tlly the Federal sp.1nsorlng agency.
(5) Adequatel,. ml\lntenl\nce procedures
shnll be Implemented to keep the property
In good condition.
(6) Where the reclplenl Is nuthorlr.ed or
requIred to sell the property, proper Mles
procedures shnll be estnllllshed v.'hlch would
provide tor cornpetlllon to the extent prncll-
cnllle nnd result In the highest pos..lble re-
turn.
7. Expendable pc,"onal property.-Tltl. to
expendable person..1 property shnll vest In
the recipient upon ..cqulsltlon. If thero '1. a
resldu..l Inventory ot ..ueh propert). exceeding
$1.000 In totnl aggregate Il\lr mnrket valu..
upon termlnl\tlon or completion ot the gr..nt
or other ngreement. and the property Is not
needed lor any olher lederall)" sponsored
project or progrl\m. the recipient shl\ll retain
the property tor LL.e on nonlederally spon-
sored activities. or soli It. hut mURt In either
. case. compensnte the Federal Governmont
tor It.:! shsre. The amount ot compenSl\lIoD
shall be computed In the same manner R.S
nonexpendahle personnl property.
8. Intanplblc propcrlY.
a. Invention, and patcnt..-If any progrnm
produces patentable Items, patent rlghL'.
proce....es, or Invention.. In the course ot
work sponsored by the Federl\l Governm.nt.
such l..ct shall be promptly ..nd lully report-
ed to the Feder..1 sponsoring agency. Unless
there Is a prior I\greement betv.'een the re-
cipient ..nd the Federal sponsoring agency
on disposition 01 such Items. the Federal
sponJOOrlng agency sh..ll determine whether
protection on the InventIon or discovery shnll
be llOught. The Federal spon..orlng ..gency
w1l1 ..150 determine how the rights In the In-
vention or dlscovery-Includln!; rl!;hts under
sny pstent t'iSUed thereon-<sho.ll be I\llocated
and administered In order to protect the pub-
lic IDterest CODslstent with "Government
Pstent Policy" (PresldeDt.s Memor..ndum
lor Heads 01 ExecutIve Departments ..nd
Ageocles, August 23. 1971, snd ststement ol
Government Patent Policy e.s prlntec;l In 36
F.R. 16889).
h. Copyrigh.t..-Except e.s otherwls. pro-
"Ided 10 the terms ..nd conClltlon. ot tbe
sgr~meot. the author or the recipient org..n-
IZl\tlon Is lree to copyrlr,ht ..ny books, pub-
IIc..tlons, or other COp)":"lghtable ml\l.4rlaJs
developed 10 the cours. ot or under.. r.d-
er..l agreement. but the J"eder..1 spon50rlng
agency shall reserve a ro)...lty-lre.. nonex-
clusive and lrrevoc..ble right to reproduce,
publish. or otherwIse use. ..nd to authorlse
others to use. the worle lor Governm.nt pur-
p05....
ATTACH~<I:r<T O.--cncuLAII No. i.-lID
r~OCUR.NrH'T 8TAl"fDARD5
1. Thl~ r.ttRchm.nt provIdes s'..ndard. lor
use by rec:plents In e6t..bllehln\: procedures
lor the procurement ot supplies. equipment.
construction I\nd other service. with F.der..l
1uuds. Ther.t' standa.rd-s are :urnI5h~d to en-
sure th....t such materh..15 a.nd service-II; Are ob-
tained In an e.trectlve ml\nner ",nd In com-
plll\nce wIth the provisions 01 ..ppllel\bl. T.d-
erl\l I...... ..nd executive orders. No ..ddltlon..l
procur.ment standarcb or requlr.m~"t.s .h..1l
be Imposed by lhe rederal sponsoring "Ben-
cl~s upon recipients unle... speclnCl\lly re-
quired by Teder..1 stntute Or executive orde".
2. The standards contained 1n th1s I\t,-,"ch-
m.nt do not relieve the reCipient ot the con-
tr..ctul\l responslbllltle. s.rlslng under Its
contr..ctJ<. The recIpient I. the respon51ble I\U-
thorlty. without recour~. to the !"ederal spon-
sorlnr. agenc)' regf\rdln!; the settlement ..nd
snt1'[R.ctJon of ",11 C".o7'l.trA./:'tun.l and I\dmlntJ.-
J
A-110:21
Ir..llve 1"\lK ..rising out ot procuremenu
entered Into. In support ot 1\ gro.nt or other
I\!:r..ment. Thla Ineh.d.. dispute.. claim...
prote~U ol ",,'n.rd. ..a\trM IYf:dulLt1on or othf"r
mntters of a contractual nl\lUTt. )'iRtten5 con..
cPTnln. vlolntlon ot la'" 1\/"' to be reterred to
such local. 5tl\te or Teder..l authority... may
have proper turl.edlcUon.
3. Recipients mo.y u... Ihelr own procure.
ment policies I\nd proced\lr.... Ho....ever. all re-
cipients shnll "dhere to the ato.ndards eet
lorth In pl\rn!,rl\pha 3 "nd (.
a. The recipient ahall mnlntl\ln a code or
standl\rd.. ot conduct thl\t .hl\ll !:overn the
pertorml\nce ot Ita omceT>, ernploYNls or
ngent. engl\ged In the f\w!\Tdlng I\nd I\dmln.
Istrntlon ot eontr..cts using Federl\l tund..
No employee, omeer or agent shall pl\rtlclpate
In the .electlon, "......rd or I\dmlnlstratlon ol
1\ contr"ct In ...hlch rederal tunds I\r. used.
where. 10 his knowled!;e. he or hi. Immediate
tl\mlly, partnera. or organlzntlon In ...'hlch he
or his Immedlnte tnmlly or po.rtner hll.. a
nnnntllll Inlerest or ....Ith ....hom he I. ne!:o-
tlatlng or hl\4 I\nl' ..rro.ngement concernIng
pro"p..ctlve .mployment. Th. recipients' of-
nCCTJ. employees or ngent. .hl\ll neither solic-
It nor ..ooopt gro.t\lltlel. tavors or anything
ot monetary value Irom contrnctor. or poten-
tl..1 contractors. ~uch at..ndnrds shllll provide
lor dl.clpllno.ry actions to be applied for \'10-
Il\lIon. ot such atandsrcl.s hy the recipients'
omcers, employees or I\f:ents.
b. All procurement \ranso.ctlons shall be
conduct.d In a mo.nn.. t.o provide. to the
.maxlmum extent practlc..l. open and Iree
comp.tltlon. The recipient should be alert
to org1'nlzl\t1ono..l coomcts ot Inl>erest or non-
competltlve prl\Ctlce. ..mong oontrllCtoro
that may restrict In' .Um!n1\te compe~ltlon
or otltl..rwt.... restn.!.. trl\.de. In order to en-
.ure objective contre..ctor pertormancc and
ellmlnato unlaJr competltlve adrantl\.g.. con-
trn.clx>r. that develop or crr.!t spe<:lficat.lons.
requlN>ments, ..tatem.nbs 01 wor~. InvlU\-
tlorn> lor bid.. and/ln' requoots lor proposals
she-uld be excluded lrom coatpetlng tor such
procuremenu. Awnraa ~ be made to the
bldd~/ol1erO'l' whose bld/on..- \.! rosponllolve
to ttl. 00 11 cl tA tAon a.nd k tn06 t nO v...n t.ag eoous
to the J"e<:1~t, p<'lce ..nd other lo.ct.oro coo-
sldered. 801lcl\.&tlo'''' s.he.1l clearly set lorth
1\11 requ!rementa tho..t tho bIdder /oO'~r must
luInll In ord..,. lor hl6 ~/oO'er to be eV"Blu-
..ted by bh. recipient. Any ..nd all bld3/oner~
ffiA)" be n:joot.ed wh.n It Is In the re<::lp1ent.s
lnt,ernt to d.o 80.
c. All recipient.!. SohI'll ...t<<ollsh procure-
ment prOC"durel th&t provldV lor, ..t a mlo-
Imum. the lollowlf">l> J>1:OOCdurl'1Tequlrernents.
(1) P'Topo~ pr~ent actIons ..hall
lollow a pr~ut'O to ......,ure lb. ..voldR:>C.
ot pU~l""lng unnec=-ry 0<' ch1pllcatlve
I\.eJlU. W'hor. ...ppropr\6.\4. an anl\l~'" .h...1l
b. rna..d-e ol Ie""'" ..nd purch....~. 1\!te-rn...t.\'....
Ix> de\..orml n. ...hloCh ....,ou1d be tho D'106t
.conomJC&l. pr..ct\06.J procurement.
(2) &ollcl tlo. tlon.< f or ~oocI<5 and services
.hall be 'btued upon .. dee.r ..nd aceur..to
doecrlptlon ot the technlce.l requJroment.!.
Icr Ul. me.~l..l. prod\KI or :>eT'Tlce to be
procurod. Such .. d~rlpt-lOn shl\.ll not. In
cOm.p<!tltlV<: pT'O<luremon\l. conl.&ln le6tures
which und\ll,. r...tr1et com.p.tltlon. "Br..nd
n..m. 0<' .qUAI" ducrlptklll-' mo.)' be uud
LlI .. mel\n& to Q.e-nne t.he per1'ormlb.no- or
ot.her aa.lIifnt r.qulreTncnt:a of 8. procuTe.mrnt,
..nd ....h.n K1 \1....0 the specific leatures 0: the
n..mod I>n.nd .....lllch m....st be met by bldd.., /
onerors .ha.lJ be clee.r1r sopecJ!\ed.
(3J Po.ltlve .rrOrl'" :>hl\ll be mM\. by the
recipient.' to utilize sm..ll buslne"" I\"d ml-
norltv-owne-d bustneN ~ources of 8upollea
..nd ~ervl~.e', Such ell orts should alia.... theM
sourc.. the ml\xlmum fef>5lbJe opportunIty
to comp." lor contac," utlllr;lno; hder..l
tunnc.
(4) The type of procurl n" lrut....um.nbl
U"cC. '.h" IIxed prIce oontn>.cu. ooet ra\In-
-,
I
Office of Management and Budget Circular A-110 (7/30/76)
bur"",!>le oontract.s, purchf\.Se orders, Incen-
tive contrnc!.'. sh"lI ~ deLerrrtlned by Ule
rl'Clplent but must be flpproprlate for the
p"rtloul"r procurement ILnd for promotlnr,
the ~st InLerc<:t of th~ prormm IIl\'ol\'ed.
The "cost_plu.;-n-percenl.age-of-cost" meUI-
od of contrn.ctlng slll\lI not be used.
(5) Contrl\C!.' shnl be ronde only with re-
sponsible con trn.ct.ors who pO,,;et;6 Ute po'
tenllon..,! ILblllty to perform succe3t\fully
under lhe ternlS end conditions of " pro-
posed procurement. ConslderlLUon :>hall be
given to such mAtl.cr6 ...s cont.rn.ct.Or Inte(;Tlty,
rcoord of pRSt perfOr/TUUlee, flnnnclal "nd
t.cchnlonl rcsourcc.s or o.ccc.;slblllt). to oUler
ncccs:s.n.ry rCSO\H'('..cS.
(G) All proposed sole :>ource contract.s or
where only one hid or proposal Is received
In whloh the agr,rcgnte ex.pendlture Is ex-
peeLed t.o exceed '-5,000 shlLlI be subject. to
priOr approvnl nt the dlscrell"ln of the Fed-
eral sponsorl nr, agency.
(7) Some form of price 'or cOGt. lUlnh'sls
should be mnde In connection wlt.h e~ery
procurement. n.cWon. r'Tlce nnnlyslE TTV\Y be
ILCcompl1..<.hed In\"arlou5 WflY-', IncludIng the
compa.rll'On of price quot.nuons submitted,
IDl\rket prices flnd slmllnr Indlclll, together
with d.J~unts. C<<>l I\.nnlysls Is the review
IInd e\'"luo..Uon of cnch eienlent of co.,-t to
del.crnUne roo.sono..blencss, alloca.blllt)' IInd
&lIoWl\.bUlty.
(8) ProcuTement record6 n.nd fIlC6 for pur-
cho..ses In ex.-c:.ess of '10,000 &hall Include the
follo","jng:
(a) Bf<.sl. for contre.c:tor selection;
(b) Justlficatlon for lack of competition
....hen competJtlve bids or orrers n.re not
ob\.nlncd.;
(c) Basis for Award C06t or prlCoC.
(9) A s)"stem for con trl\.ct Mlnllnlst.rntlon
lIhl\.lI ~ m.o..lntnJned to ensure contractor
conformance with terms, conditions and
speclflcatlons of the eootrnct, and to ensu,"
l\.lIequ"u; and timely followup o! a.ll pur-
chases.
{. The recLplent shall Include, In &ddltlon
to provisions to define I\. sound nnd complete
. "greement, the following pro\"1Slons In all
cont.racts. These provisIons shall also be 1'1':
plied to subcontrl\.cts.
a. Contrn.cts In excess of ~10,OOO shft.11 con-
tain contr"-Ctual pro\"1slons or cond:wons
thnt will .ilo\l." for I\.lI.m.lnlstrntlve, contrn.c-
tu"l or legl!.! remedJes In Instances In ..."hlch
cont/"'B..Ctors vlola.t.c or bre"ch oont.r"ct t.cnns
"nd provide for such remedIal actions ...;
rruy be I\.pproprlaLe.
b. All contrllcts In excC1>S or ~10,OOO shIll!
contnln sul\.nble provL.<;lons for te:onJne.tlon
br the recipient Including the mnnnec b\'
",'hlch l.crmJna.Won wlll ~ etTecl.cc and lh~
bAsis for settlement. In Mldlt.lon, sue." con-
trn.cts shnll de;crlbe condItlolls unde~ which
the oont.rlLCt. lTlAY ~ t.cnnl.ll"l.cd for default
i\.5 wcll I\.S colH.1ltioru; where the rontrn.ct. nmy
lH.' 1..crrnlnntcd b<."C1\.\1~C of olrc\1l1l....c;tlLnc~ be-
yond the cont.rol of t.he contr"ct.Or.
c. In ail rontrncts for c0'l1!'trucllOIl or fft,.
c.llity Ilnpro\'cnlcllt awa.rded for rnorc thnn
f,100,OOU. recipients shnll ol>6crve t.he bond-
Ing N)'lulrement.s pro\"1ded In Atl.<lC.llJllent D
to thIs circular.
d. All contrllCL<; "warded by reelpl("n\.' nnd
their oont.rn.ct..or:; or s\lb~ntees hn.vlng a
v"lue of morc th"n $10.000, sJmll conw.ln a
provision reCjulrlns compll1\nCoC \\1t.h Execu-
tive Order 1124G, ent.ltled "Equal F..mrloy-
ment Opportunlly," 115 amended by Executive
Order] 1375. nnd as supplementr.d In Depnrt-
ment or L"bor regul"tlOIlf, (41 CFR. "nrt GO).
e. All contrncts "nd suhl'mnLs In excess or
~.2.000 tor construcl..loll or repa'r awarded by
reclpien!.s ..nd subreclrlen.L, sh"ll Include II
provision for compll"nce wllh the Copelnnd
"Anti-Kick D"ck" Act (18 V.S.C. 874) .....s
supplemented In Department. of LlIbor
rer,uI"t10ns (29 CPfi. P"rt 3). This Act pro.
vldes that each contractor or sub(;mlltee
shllll be prohIbited from Inducing, by nny
means. nn~' person employed 1n the con~Lruc-
\.Ion. complellon, or rep"lr of public worK. to
gl ve up "ny part of the compensn\.lon to
which he Is other...'lse en\.ltled. The recipient.
shall report lell suspect.ed or reported vlola-
tlons to the Federal sponsorlllg asenc,.
1. When required by the Federa] pror,mm
leglsla \.lon, all const.ruc\.lon con tracts
awarded by the recipients lInd subreclplents
of more thl\.n ~.2,OOO shall Include a provision
for compliance ....Ith the Davis-Bacon Act (40
U.S.C. 2761' to ..-7) and ns supplemen'led b,
r>epl\Ttment of Labor regullltlons (29 CFfi.
P"rt 5), Under this Act contractors shall be
requlre<l to pay ....agcs to ll\.borers and me-
chanics at a rat.e not less thl\.n the mInimum
",'ages specified In a wl\.ge det.ermlnatlon m"de
by ,t.he Secretary of Labor. In addlt.lon. con.
tract.ors shall be required to 1'''> wages not
less than once a ....eek.. The recipient shnll
place a copy of the current. prevailing wage
determlnlltlon Issued by the Depart.ment. of
Lnbor In each sollcltatlon and the aWI\rd
of a contrl\.Ct. .hnll be condl.tlOned upon tbe
accept."nce of the wage det.ermlnatlon. The
recipient shall report 1\.11 suspected or re-
ported violation. t.o the Federo.l sponsorlog
ngeney.
g. Where applicable. nil cont.racts aw"rded
by recIpients In excess of :.2.000 for construc.
tlon con1.racLl:i nnd in excefS ot e.2.500 tor
olher cont.racts thatln\'olve the employment
of mech"nlc., or laborers, shall Inelude a pro-
vIsIon for compliance ",'Ith sections] 03 and
107 of the Contract Work Hours aod Sl\!et.y
Standards Act (40 U.S.C. 327-330) as sup-
piemented by Departme",t. of Labor regula-
.1
A-110:22
tllms (29 CFfi. PllTt 5). Under section 103
(If the Act. el\ch conti-neLor sh:l.1l be re.'.
qulrcc1 to cntllpulc the wngcs of every IIlC.
chnnle Rud Inborcr on the ba!=i.ls of n standnrd
\,;lurk ctny of P. lHnlT"!'; nnd n r.tl\llctllrd work
wcek of 40 hours. Work In excess of lhe
st.andnrd o;J.'orkdny or workwcC'Y. l~ pcrnl1s..<;lblc
JHo\'ldcd LhA..t the worker is cornpcll~ntcd nt n
rnle or not Jess thnn ] V2 Urnes the bnslc
rale of pay Cor A.ll hours workl~d in cx.ccs~
or B hours in nny Cl\lclldnr dny or 40 hours
In the ....orkweek. Section 107 of lhe Act Is
nppllcable to conslructlon work lllld provl<1('s
t.hal no laborer or mechanic shall be re()lllred
to \\'or}~ In 5\1rroundlng::o or tinder working
c.ondltlons whtch nre unsRntt.nry, hnz.ardo\ls
Of dnng(':ro\1~ to h1s hcnllh nlld :~I\f('ty 1\..<; de.
tl'rrnlllcQ under construction snlel\' Illld
hcnllh ~tnlldards prolll\llgnt.cd by the ':-;ccr<'.
lnry of Lnbor. Tllc~c rcq\1irClllrl\l.:,;, du -)01
"I'ply to the pllrchl\.Ses of s\l('pllr.. or mate-
rials or arlldes ordinarily nVldl"ble on the
open lunrkct. or conlrnct.s for trl\.n~portnllon
or \.ra115nll~"'lon of lntcIl1b"CJ1Cc.
h. ContrAct.s or nt6--ccmclll-~. tile prtnctrnl
JHlrpO!;(' of.whIC)) I.'; to crentc. dc\'clop or ~nl-
prove products. prOCC!iSCS or n'lC:l.llo<ls: or for
explorllUon Into Helds th"t directly concern
public henllh. safety or wclfnrc: or contrncts
In the field or sclr.nce or technolosy In which
there has been 1It.t1e ,.,,:nlf'cant expeTlence
ouLslde of work funded by Federnl f\.';Slst-
nnce. shall conlllln " notice to the ellect ,that
mat.t.crs re(;ardlns rlgh\.' to In\'entlons nnd
ml1Lcrtnls generat.cd und.er the contrnct or
nr,reement. are slIbject to the regulations 15-
slIed by the Federnl sponsorlnl' "l'ency IInd
the recipient. The eonlrn.ctor shall be "d-
\'I"ed lIS to the source of IIddl tlonal Inlorma-
tlon ~l'(\rdlng these matters.
I. All nesoU"t.ed contrflot.s (except those
of ~ I 0.000 or less) a....!\Tded by reclplen\.s
5\1,,11 Include" pro\'lslon to t.he e!lec\. thnt.
the recipient. the Fe<lernl spo"-"'rlng agency,
the Comptroller General of the UnIted St."t.cs.
or "ny of ot.helr d\lly authorl7.ed represr.ntu-
t1\'es. shall hllve nCce"-S to any boo.:s. docu-
ments. p"peTS nnd records of the contractor
which a.re dIrectly pert.lnent to a specific pro-
(;'mm for the purpose of making "udlts,
examinations. exccrpL~ and transcriptions.
). Contrscts "nd subl~.,.an'ts of amo\lnts In
excess of UOO.OOO shall cont"ln a provision
that requires the recIpIent to aEtree to com-
ply ",'Ith all "ppllc"ble st.nnda.rds, orders or
rel:ul"tlons Issued pursuant to the Clear A:r
Act. of 1970 (42 D.S.C. ]857 et sc-Q.) and the
Federo.l WI\..\.cr Poll\ltlon Contrnl Act (33
U.S.C. ]251 et seq.) l\S "mended. Vlol"tlons
sh,,11 be reported to the Feder"l S[>9nsorlng
"l:ellcy nnd the RegIonal Ilmce of the Eo-
\'lronment.,,1 ProtectIon Agency. .
IFR Ooc.76-21904 Flied 7-29-76:8:45 amI
I
-,
,
,
APPENDIX H
OMB
Circular A-I22
4.
.
, .
I
Office of Management and Budget Circular A-122 (6/27/80)
Of PICE OF MAHAGEMENT AND
BUDGET
C6rcolar A-122, "Cost Principles for
Nonprofit Organizations"
AGENCY: Office of Management and
DudCel.
ACTION: Final Policy.
Junc 27. l!IUO
To The Heads of Executive
Departments and Estnblishments
Subjcct: Cost principles for nonprofit
organiza lions. .
1. Purpose. This Circular eslaLli:;hcs
principllls for determining cosls of
grants. contrii:;ls Hnd other agrecments
with nonprofit organizations. II docs nol
apply to colleges ar.d universities which
are covered bv Circular A-2r. Stote.
loco!. and fe'd~rnlly recognb:ed !ndian
tribal governments which are covered
by Circular 74-4: or hos;;itcls. The
principles are desisned to provide thaI
the Federal Government bear its fair
shnre of costs excent where restricted or
prohihited by law. The principles do nol
o lIempt to prescribe"the extent of cosl
sharir.g or matching on'grants, contracts,
or otn!;::- a3reemCl:ts. However, such cosl
sharing or ma tching shall not be
accomplished through arbitrary
limitations on individual cost elements
by Feder3l agencies. Provision for profit
or other increment above cost is outsid'3
the scope of this Circular.
2. Svpersession. This Circular
~upersedcs cost principl~s issueo:! by
indi vidual agencies for non"profH
organization.
3. Applicability. a. These principles
shall be used by all .Federal agencies in
determining the .costs of work performed
by nonprofit orgRnizations under grants,
cooperative agreements, cost
reimbur:;ement contracts. and other
contracts in which costs are used in
prir.ing, administration. or s~ttlp.menl.
All of these instruments are nereaflcr
referred to as awards. The principles do
not apply to awards under which an
organiza tion is not required to acco~nt
to the Government for actual costs
incurred.
L. All cost reimbursement subu...,"anls
(subgronts. subcontrRcts, elc.) are
subi~cl to lhose 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 commerciRl
concerns shall apply; if a subaward is to
a college or university, Circulur A-Zl
~hall apply: if a subil\\'ilrd i~ to R Stillr..
loclll,-or fedep81IyrecO~i7..ed Indilln.
tribal government, Circular 7~ shall
opply.
4. Definitions. a. "Nonprofit
organization" means any corpora tion,
trust. lP.lsociation. cooperative, or other
organization which (1) is operRted
primarily for sdcntific, educational.
service, charitable, or similar purposes
in the public intere~t; (2) is not
organized primarily for profit; and (3)
uses its net proceeds.to maintain,
improve. and/or expand its operations.
For this purpose, the term "nonprofit
organization" excludes (i) colleges and
universities: (ii) hospitals: (iii) State.
local. and federally recognized lndian
tribal governments: and liv) those
nonprofit organizations which Rre .
exc\mlcd from coverage of this Circular
in accordance .....ith pRragraph 5 below.
b. "Prior approval" means secu~ing
the awarding llgency"s permission in
advance to incur cost for those items
thai are de~ign8ted as requiring prior
approval by the Circular. Generlllly this
permission will be in writing. Where un
item of cost rl;quiring prior approval is
speciiied in the budget of an.award,
approval of the budgct const'ilules
approval cf t~ut cosl.
5. Exclusion of some nonprofit
organizations. Same nonprofit
organizations, bec.uuse of their size and
nature of operations. can be considered
to be similar to cOll1mercialconcerns for
purpose of applicability of tost
principles. Such nonprofit organizations
shall operate under Federal cost
principles applicable to commercial
concerns. A listing of these
organiza lions is coD.uined.in.
Attachment C. Other orgar:;zalions may
be added from time to time.
6. Responsjbilities. Agc[l.cie.s
respons'ible for administering progra.ms
that involve awards to nonprofit
organizations shall implement the
provisions of this Circular. Upon
requesL implementing instruction shall
be furnished to the Office of
Management c.ld Budget. Agencies shall
designate a liaison official to serve 8S
the agency representative on matters
relating to the implementation of this
Circular. The name and title of such
representa tive shall be furnished to the
Office of Management and Budget
within 30 days of the datc of this
Circular.
7. Att.ochmenls. The principles and
related policy guides are set forth in the
following Attachments:
Attachment A-Geoeral Principles
Attachment B--Selected Items of Cost
Attachment C-Nonprofit
Organizations Not Subject ~ This
Circular
.1
A-122:1
8. Requests for exceptiOJls. The OUice
of Management t!Dd Budget mar wllnt
exceptions to the requiremcnts or \his
Circular when permissible under
existing IRw. However. in the interest of
achieving maximum unifonnilY.
exceptions wiu be pennilled only in
highly unusual circumstaoces.
9. Effective Date. The provisions of
this Circular are effective immediately.
ImplemenlRtion shall be phased in by
incorporaling the provisions into new
a wards made after the start of the
organization's next fiscal year. For
existing awordsthe new principles may
be applied if an organization and the
c.ognizant Federal agency agree. Earlier
imJ51ementation. or a delay in
implement a tion of individual provisions
is also permitted by mutual agreement
between an' organiza tion and the
cognizant Federal agency.
10. inquiries. Further information
concerning this Circular may be
obtnined by contacting the Financial
Management Branch. Budget Review
Division. Office of Management and
l3udget, Washington, D.C. 20503,
lelephone (202) 395-4773.-
James T. Mclntyrc, Jr.,
Director.
(Circular No. A-1Z2]
A\lnchment A
Gcneral Principles
Table of Contents
A. Basic Considera lions
1. Composition of lotal cosls
2. Faclors affecting allowabilily of costs
3. Rcasonable costs
4. Allocable costs
5. /\pplicable credits
O. Advance understandings
B. Direct Cosls
"\
C. Indirect Costs 4-
D. Allocation of Indirect Costs and
Determination of Indirect Cost Rale~
1. Genp.ral
2. SimpliIied allocation method
3. Mulliple allocation base method
4. Direct allocation method
5, Special indirect coot rates
E. Negoliation and Approval of Indirect Cost
Rates
1. Definitions
2. Negotiations and approval of rates
[Circular No. A-:22]
Attachmeot A
Gcr.:cral Principles
A. Dosic Considerations.
1. Composition of total costs. The lolnl cost
of an award is the ~um of the allowable
dircct and allocable indirect costs lcss aoy
applicable crcdits.
2. Factors oFectins a!lowobility of c;osls.
.
"
I
Office of Management and Budget Circular A.122 (6/27/80)
To be allowable under an aWard, costs must
meet the following general criteria:
8. Be rel\8ona ble for the performance of the
award and be aUocable thereto under these
principles.
b. Conform 10 aDY limilations or exclusions
set forlh in these p~!nciples or in the aWIlf(1
as to types or amounl of cosLilems.
c. Be cobsislc(lt wjth policies and
procedures thaI apply uniformly \0 both
federally financed and other activities of Ihe
orga niza lion.
d. Dc accorded consislenttreatmcnt.
e, De determined in accordance with
generally accepted accounting principles.
f. Not be included as a cost or used 10 meet
cost sharing or matching niquiremonts of any
other federally financed program in either Ihe
current or a prior period.
g. Be a6~quately documenred,
3, Reasonable cosls. A coal is reasonuble
if. in its nature or ,'nount, i(does not exceed
that which would be Incurred by 'a pn:der:t
pcrson under the circumsllli1ces prcvaOing at
Ihe time the decision wa~ made to incur the
costs. The question of the reasonableness,of
specific costs must be scrutinized with
particular care in connectign with
organizationil or separate divisions thereof
which receive the prepond'erance oc'tbeir
support from awards made' by Fede'ral
agencies. In determining the reasonableness
of a given cost, consideration shall be given
to:
a. Whether the cost is of a type generally
recognized as ordinary and necesssl")' for the
operation of the organization or the
performance of the award.
b. The reslraints or reC]uirements imposed
by such factors as generally accepted sound
business practices, arms l'ength bargaining.
Federal and State laws and regulations, and
terms and conditions of the award.
c. Whether the indivldliakconcerned acted
',.ith prudence in the circumstances.
considering their responsibilities to the
organization. its members, employees, and
clients, the public at large, nnd the
Government.
d. Significant 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
objecti\'e. suc!: as a grant. project. service. or
other activity, in accordance with the relative
benefits received. A cost is allocable to a
Government award if it is treated
consistently with other costs incurred for the
same purpose in like circumslances and if i't;
(1) Is incUlTCd specifically for the aWilrd,
(2) Benefits both the award and olher work
aOld can be dis:ribuled in reasona ble
proportion to the benefits received.
(3) Is neccssary 10 the overall operation of
the orgilniz3 tion, althouoh a direct
relationship 10 any particular cost objective
cannol be shown,
b. Any cost allocable to a particular award
or other cost objective under these prinr.iples
may not be shifted 10 other Federill awards 10
overcome funding deficiencies. or to avoid
restrictions imposed by law or by the tcrms
of the award"
5. Applicable crediL~.
a. The term applicable credits refers to
those receipts. or reduction of expenditures
which operate \0 offset or reduce e)(pan~es
item8 that are ellocaLle to awards as direct
or indirect costl. Typical eXRmples of such
transactions are: purchase discounts. rebates
or allowances. recoveries or indemnilie8 on
losses. insurance rclunds. and adjustments or
overpayments or erroneous charges. To the
ex lent thai such credits accruing or received
by the or!lanization relale 10 allowable cost
they shall be credited to the Government
either as a cost reduction or cash rclund os,
appropriate.
b. In some instances, the amounts received
form the Federal Government to finance
orgRnizational activities or service operations
should be trealed as applicable credils.
Specifically. the concept of netting such
credit items against related expenditures
should be a;:plied by the organizaton in
delerrning the roles or amounts to be
organization in determining the rates or
arnaounts tobe charged to Federal awards
for services Tendered whenever the facilities
or other resources used in providing such
'services have be!!n financeu clirectly. in
whole or in part. b)' Federal funds:
a(c) For rules covering program income
(i-e.. gross income earned from federally
supported activities) see Allachmenl D or
01'.113 Circular A-ll0. '
6. Advance and understandings. Under :lIlY
given"'award the reaeonablenc-ss and
allocability of certain ilem~ oC costs may be
difficult 10 determine. This particularly true in
conDecti~n wilh orgizalioM that receive a
preponderance of Iheir support from Fedcrlll
agencies. In 'order to 6void subsequent
disallowance"or dispute based on
unreasonablenes.s or nonallcicabililv. it is
oft!!n desirable to seek a wril\eil ag'reement
with the cognizant or owarding "a13ency in
advance of Ihe incurrence of special or
unusal costs. The absence of an advance
agreement on any alement of cost will nol, in
ilself. affect the reasonableness or
aliocability of thai element.
B. Direct Costs
1. Direct costs are Ihose that can be
identified specifiea!!y with a particular fba!
cosl objf:clive: i.e.. a particular award.
project. service. or other direct activit)' of an
crglmizntion. However. a cost mav not be
assi>;!ned 10 an award as a direct ;ost if an\'
oih~r cost incurred lor the same purpose, i~
like circumstance. has bep.n allocated 10 an
award :H an indirect cosl. Cost identified
s;:edflcEllly with Rwards are direct cost of the
awards end are 10 be assigned directly
thereto. Ccsl identified specif:caliy with olher
final cost objectives of the organization are
direcl costs of those cosl objectives and are
nolto be assigOled to other Rward. directly or
indirectly.
2. [,n)" dirp.ct cost of a minor"amount m:J)"
be tresled as an indirect cost of or reasons of
pructica!ity where the ar.co\lntlrealmenl for
such cost is consistcntly npplied to all fin:JI
cosl objecti\'es.
3. The cost 01 cerIa in acth'ilies orc not
aHowable 115 charges t<;> Federal awards (sec.
for e>:ample. Cund raising costs in paragraph
-,
A-122:2
21 of Atlachment B), However, even though
Ihese cosh ere unallowable for purposes of
computing charges to Federal awards. Ihey
nonetheless must be treated a~ direct cost for
purpose. oC determining indirect cosl rales
Rnd be a 1I0ca ted their 8l1lll"c of the
orgAnization's, indirect costs iC \lley represent
oclivitieswhich (1) include the salaries of
personnel. (2) occupy sp~ce, and {3) benent
from the organi7.alion's indirect costs.
4. lne costs of activities performed
primarily as a service to members, clients, or
the general public when significant nnd
necessary 10 lhe orgunizalion's mission mUElI
be treated as direct costs when or not
ollowuble ond be allocllted an equitahle
share of indirect cosls. Some examples of
Ihese types of activities include:
1\. Maintenunce Qf membership rolls,
subs'c:riplions. publications. and related
Cunctions.
b, Providing services and inCormation to
members. legislative or administrative
bodies. or the public.
c. Promotion. lobbying. ond other forms of
public relalion~.
d, Meetings and conrerences except those
huld to conduct Ihe general administration of
the organization.
3. hlaintenacne, protection. and investment
of ~pecial funds not used in operation oC Ihe
orgunization.
r. Administration of group benefits on
behelf of members of clients including life
,and hospital insurance. annuily or relirement
plans. financial aid. elC,
C. Indirect Cost.
1. Indirect costs are those that have been
incurred lor common or joinl objectives and
cannol ue readiiy. identified with a particu\ur
final wst objecU\'e. Direct cost of minor
ar.lounts may be treated as indirect cosls
under thi! conrlitions described in paragraph
B.2. abo\'e. After direct cost~ have been
dell<rmil1cd and assigned directly 10 awards
or olher work as appropriate. indirect costs
are those rem:oining to be lJllocated 10
benefiting CO~1 objectives. A cost mr,y not he
allocated 10 an award os an indirect cosl if
EWY otllf~r cosl incurre41 for the iarne purpose.
in Eke circunulances. 'ha~ been as~ig~ed to
an li,,:ard as a direct cosl.
2. Because of the diverse characlerislics
lI:1d accounting practices of nonprofil
crganiza tions, it is not possible 10 specify the
typp.s of cost which may be classified HS
inrlirl<cl cost in all situation. However, typiCal
e,\amples of indirecl cost for many nonprofit
o:'ganiza tions may include deprecia tion or
use allowance.s on buildings and equipment.
the costs of opcr.,ting and maintaining
f:Jcilities. snd general Rdministration and
g!'ne.al expenses. sllch a~ the salorie~ and
eXf'Cnses of executive officers. personnel
ourr.inistration. and a.ccounting.
D. Allocation of Indirecf Cost ond
Drtermination of Indirect Cosl Ratf's.
1. General.
u, V\'here a nonprofit orpaniz~ lion has only
one rr.<<jur function, or w;',ere HiI its major
lunctions benefit from its indirect cosls 10
approximately thc same degn'e, the
,dlocntion of indi:ect cosls llnu the
.
.
I
Office of Management and Budget Circular A-122 (6/27/80)
computation of an indirect cost ule ru-r be
accomplished throu~h simplified allocation
procedures as doscribed in paragreph 2
below.
b. \,\'here an orgonir:ation has several major
functions which benefit from its indirect costs
in varying degrces, alloca tion of indirect
costs may require the accumulation of such
costs Into separate cost groupings which then
are allocated individually to benefiting
functions bv means of a uase which belt
measures the r'llative degrce of benefit. The
indirect costs r.llocaled 10 each function are
thr.n distributed to intlividual awards and
other activities included in that dunction by
means of un indirect co,t rale(s).
C. The determinotion of whot constitutes on
or~anization's mojor functions will depend on
its purpoee in being: the types of scr;'ices it
renners to the public, its clients, and i1~
members; ond the Hmollnt of errorl II devotes
to such activities os fund raising. public
information and membership activities.
d. Specific methods for allocating indirect
costs and computing indirect cost rates along
with the conditions under which each method
should be used are described in paragraphs 2
through 5 below.
e. The base period for the allocation of
indirecl 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
evnl. shall be so selectee as to avoid
Inequities in the allocation of the costs.
2. Simplified allocation method.
a. Where an organization's major functions
benf:fit from its indirect cosls to
approximately the same ce2re. the ,.!localion
of indirect costs may be ac~o:nplished by (i)
separating the organization's total costs for
the ba~e period as e!lher direct or indirect,
<<nd Iii) di\'idin,llthe total alloweble indirect
cnsls Inet of ap.piic:able credits] by an
equitable distribution base. The result of this
process is an indirect cost rate which is used
to distribule indirect costs to individual
a waras. The rste should be expressed as the
percentage which the total amount of
allowable indirect costs bears to the base
selectl'd. This method should alos be used
where an organization has only one mdjor
function encompassing a number of
individual projecl~ or /Icli\"ities. and may be
used where the le....el of Federal awards to an
organizalinn is relatively small.
b. bolh the diroct cosls IInd the indirect
cesls shall exciucle cap;!El expenditures and
unallowable costs. Ilowe...er. unallowable
costs which represenlllctivilies must be
included in the direct cos!s under the
conditions described in paragraph B.3. above.
c. The distribution base mil}' be total dircct
costs [exclutling capital expenditurc~ and
othcr distorting itcms. such liS major
subcontrllcts or s:Jbbrar.t~). direct sc1l1ries
and wagcs. or othcr base which results in an
cquilable distrib1Jlion. The distribution base
shall gencrally exciude ps:tidpant suport
cosL- as defined in paregraph ZIl of
A\lachment B.
d. Excl'~,t whcrc a sfJl'cia! relels) i;;
rrquirl'd in eccordance with paragraph 0.5
below ,\he 'indirect-GDllt u Ie d,.-.(Qloped. .....d!!r
thc a bnve princ..ipw.s~, aro>licab\e .\D a II
B wards sl.the OC1lani:uo.iion..II a spacial
rate(s) is required.apprapriate modu.CM.tiolU
shall be made in order to develop .tbe special
ratl'(s).
3. Multiple oIlocoljon base method.
&. \'o'here ao organization', indiroct costs
benefit its majorfuoctions in varying degrees,
such costs shall be accumulatod into separate
cost groupinf!S. Each grouping shall then be
allocall'd individually to benefillng functions
by means of a hase which hesl measures thc
r~lative benefits.
b. TIle groupings shall be estnhllshed so as
to permit the allocation of each groul'in!;'on
the basis of benefits provided to the major
functions. Each sroupi~ should constitute a
pool of expenses that arc of like character-in
terms 01 .he fllnc:tions Ihey henefitllnd in
ICI"ll18 01 the ullUClllioll hll"" whl,,!' l"'dl
measurs the relulive benefits pro\'idd to each
function. The numher of seporste groupings
should be held within practical limits. takins
inlo considerution the maleriality of the
amounts involved and the dcgree of precision
dl'sired.
c. Actual conditions must be taken into
account in selecting the bose to be used in
allocating Ihe expenses in each grouping 10
benefiting funclions. When an allocation can
be made by assignment of a COGt grollping
directly to the function benefited. the
allocation shall be made in thai manner.
When the expenses in a grouping are more
general in nature. the allocation should be
made Ihrough the use of a selected base
which produces results that are equitable to
both the Government and the organization. In
general. any cost element or cost relatcd
factor associaled with the organization's
work is potentially adaptable for use 8S an
allocation base provided Ii) it can readily be
expressed in lerms of dollars or other
qllantitative meaGures (total direct costs.
direct salaries and wases. staff hours applied,
square feet used. hours of US1lge, number of
documents processed. population served. and
the like] and (iiJ it is common to the
benefiting functions durins the base period.
d. Exccpt where a special indirect cost
rllte(s) is required in accordance with
paragraph 0.5. below. the sepnrale groupings
of indimct costs allocated to each major
function shall be agrr.gated and treated as a
common pool for thai function. The costs in
the common pool shall then be distributed to
indivisual awars induded In that function by
use of a single indirect cost ra te.
e. Thc distribution base uscd in compuling
tI.e indirect cosl ra Ie for each function Olav
be lolal dirp.ct costs (excluding capital .
c;penditures end other distorling items sllch
~s major subcontracts and subgrants). direct
~alaries end wages, or other ase which
resulls in an equitable distribution. The
distribution base shall generally exclude
participant support costs as defined in
paragraph 29. Attachment B. An indirccl cost
rate should be developp.d fir each s~parate
indirect cost pool developed. The rate in each
case should be stated as the percenlagc
which the amount of the particular indirect
cost pool is of the distribution base identified
.1
A-122:3
with that poet
.(. Direct allocation method.
a. Some llQnprofit organizations, treat all
costs as direct costs expect general
administration and general expenses. These
organizalions generally separate their cosls
inlo Ihrc basic categories: (i) Genersl
administration and general expenses, (ii)
fund raising. and (iii) other direct functions
(including projects performcd under Federal
awards). Joint costs. such as depreciation.
rentnl costs. operation and maintenance of
facilitics. telephone cxpenses, ond Ihc like
are prorated indivisually as direcl cost to
eoch catcgory and to each oward. or other
activity using a base most appropriatc 10 Ihe
particular cost bcing prorated.
b. This method is acceptable provided each
joint co.st is prorated using a bese which
llCCllro'tc]y mell~\II"es thc hencfit~ proviclcd to
ellch nWII'rd or olher IIcllvll\'. Tho bll"o" IIIIIIIt
bc establishcd in accordan~e with rcsonable
crilerie. and be supported by currcnt data.
This method is compatible wilh the
Standards of Accounting and Financial
Reporting for Voluntary Health and WeUare
Organizations issued jointly by the National
Health Council, Inc., the National Assembly
of VoluntarY Heallh end Social Welfare
Organizatio"ns, and the United Way of
America.
c. Under this method, indirect costs consist
eclusively of gelleral administru tion and
general expenses, In all olher respects. Ihe
organization's indirect cost ratess shal be
computed in the same manner es that
described in paragraph 0.2 a !Jove.
5: Special indirect cast rates. In some
instances. a single indirect cost rate for all .
activities of an organization or [or each major
function of the organiza tion ay not be
appropriate, since it would noltake into
accountlhose different factors which may
substanlially affeclthe indirect costs
applicable to 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 Olav consist of work under a
group of awards performed in a common
environmcnt. the factor4 may inClude the
physical location of the work. the levll[ of
Administrativc sllpporl required. the nature of
Ihe facilities or order resources employed, Ihe
scientific disciplines or technical skills
involved. the organizational arrangements
uscd, or any combination thereof. \fo,'hen a
particular segment of work is performed in an
environment which appears to generate a
significantly diffcrentlevel of indirect costs.
provisions should be made for a separa te
indirect cosl pool applicable to such work,
The separate indirect cost pool should be
developed during the course of the regular
allocation process, and the separate indirect
cost rale resulting therefrom should be used
provided it is determined that (i) Ihe rate
differs significantly from that which would
have been obtained under paragraph O.Z. 3.
and 4 above. and (ii] the volume of work to
which the rate would apply is material.
E. Negotiation and Approval of Indirect Cast
nales.
I
Office of Management and Budget Circular A-122 (6/27/80)
1. Definitions. As used in this seclion, tht:
lollowlng terms have the meanings set forth
below:
a. "Cognizant agency" meons the Federal
agency responsible for negolia ting and
approving indirer.t cost rates for a nonprofit
organization on behalf of all Federal
agencies,
b. "Predetermined rote" means an indirect
cost rate, applicable to a sper.ified current or
future period, Ilsually the organization's fiscal
Year. The rate Is based on on estimate of the
~osts 10 be incurred during the period. A
predetermined role is not subject to
adjustment.
c. "Fixed rote" means on indirecl cost rate
which has the slime characteristic~ as a
predetermined rale, exceplthatthe difference
between the estimaled cosls and the actual
costs 01 the period covered by the rale is
carried lorward os on adjustment to the rate
compulation 01 a subsequent period.
d, "Final rate" means on indirecl cost rate
applicable to a specified past period which is
based on the actual costs of the period, A
linal rate is not subject to adjustment.
e. "Provisional rate" or billing rate means a
temporary indirect cosl rate applicable to a
specified period which is used for funding,
interim reimbursement, and reporting indirect
cbsts on awards pending the establishment of
a ra te for the period.
r. "Indirect cost proposal" means the
documentation prepared by an organization
to substanliale its claim for the
reimbursemenl of indirect cosls, This
proposal provides Ihe basis for the review
and negotialion leading to the establishment
of an organization's indirect cost rate.
g. "Cost objective" means a function,
organizational subdivision, contract, grant, or
other work unit for which cost data are
desired and for which provision is made to
accumulate ami measure the cost of
processes, projects, jobs and capitalized
projer.ts.
2. Negotiation and approl'aJ of rates.
a, Unless differenl arrangements arc
agreed 10 by the egencies concerned, the
Federal egcncy with the largest dollar value
of awards with an organization will be
designated as the cognizant agency for the
negotia lion and approval of indirect cost
ra tes and, where necessary, other ra les such
as fringe benefit and computer charge.out
rates. Once on agenc~' is assigned cognizance
for a panicular nonpro'fit organization, the
assignment will not be changed unless there
is a major long-term shift in the dollar voJu~
of the Federal awards to the organization. All
concerned Federal agencies shall be given the
opportunity to participate in the negoliafion
process, but after a ra te has been agreed
upon it will be accepted by all Federal
agencies. When a Federal agency has reason
to believe that special operating factors
affecting its awards necessitate special
indirect cost ra tes in accordance wi lh
paragraph 0.5 above, it will, prior to the time
lhe rates are negotiated, notify the cognizant
agency.
b. A nonprofit organization which has not
previously established an indirect cost ra Ie
with a Federal agency shall after the
crganizslion is advised that an award will be
made and, in no event, later than three
months after the effective da te of the a ward.
c. Organizations that have previously
established indirect cost rates must submit a
new indirect cosl proposal to the cognizant
agency within six months after the close of
each fiscal year.
d, A predetermined rate may be negotiated
for use on awards where there is reasonable
assurance, based on past experienr.e and
reli:Jble projection of the organi;wtion's costs.
that the rote is not likely to exceed a rate
ba~ed on the organization's octual cosls.
e. Fixed rates may be negotialed where
predetermined ra les are not considered
appropriate. A fixed rate, however, shall not
be negotiated if (i) all or a substantial portion
of the organization's awards are expected to
expire before the carry-forward adjustment
can be made; (ii) the mix of Government and
non-government work at the organil.ation is
too erratic to permit an equitable carry.
forward adjustment; or (iii) the organization's
opera tions nuctua Ie significantly from year to
year.
I. Provisional and final rates shall be
negotiated ,where neither predetermined nor
fixed ra tes are appropria te.
g. The results of each negotiation shall be
formalized in a written agreement between
the cognizant agency and the nonprofit
organization. The cognizant agency shall
distribute copies of the agreement to all
concerned Federal agencies.
h. 11 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
encountered 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 slIch problems in a timely manner.
[Circular No. A-1Z2]
Attachment B
Selected Items of Cost
Table oJ Contents
1. Advertising costs
2. Bad debls
3. Bid and proposal costs [reserved)
4. Bonding costs
5. Communication costs
6. Compensation for personal services
7. Contingency provisions
e. Contributions
{;. Depn:ciatlon and use allowances
10. Donations
11. Employee morale, health and "'elfare
costs and credits
1:. Enter~6inrncnt costs
1;J. Equipment and other capital expenditures
H. Fines and penalties .
15. Frin~~ benefits
15. Idle 'facilities and idle car-aei:y
17. Independent resenrch and development
(resen'ed)
lB. Insurance and indcmnific3tion
19. Intere~t. fund-raisinf-. andinvestmenl
manngem!:nt costs
20. Lnbor relalio;')s C.'1sts
_II
A-122:4
21. L('s~('s on oilier s.....ard;
2:. Maintenance arid r':pllir costs
23. Materials /Vld supplies
24.. Mcetin~s, r.onferencl;s
Z;j. Memt.erships, subscriptions. aud
prcfcssional activity cusls
ZB. Organization costs
",l.7, O,'crlime, extra-pu}' shif\, and multishil'l
premiums
26. Page chargl's in professionul journalll
29. Participant support costs
3D. Patent cosls
31. Pcnsion pluns
32. Plllnl scr.urity costs
'33, Preaward costs
34. Profession..l service costs
35. Pronts and 10llses on disposition of
depreciaulc property or other capitol
IIssets
JU. Public irHormation sen'ice costs
Ji. Publication /lnd printing costs
jO. Renrransement and alteralion costs
39. Recon\'ersion costs
40. Recrui\ing cost~
41. Relocation costs
42. Ren1.al cosls
43. Royalties and other costs for U!;c of
patent; and cop}'rights
H. Severance pay
45. Specialized service facilities
4ft Taxes
4i. Termir..ation costs
4B. Trainms and education costs
4D. Transpona tion costs
50. Travel costs
[Circular No. A-l2.2]
AlInchmenl B
Selected Hems of Cost
Paragraphs 1 through 50 provide principles
to be applied in establishing the allowubility
of certain items of cosl. These principles
apply whether a cost is trea ted as direcl or
indirect. Failure to mention a panicular item
of cost is not inlended to imply that i\ is
unallowable: rather determination 05 to
allowability in each case should be based oa
the treillment or principles provided (or
similar or related items of cost.
1. Ad"ertising COGts. . "I
a. Ad-{ertising costs mean the costs of' .
media Rcrvices and associated costs. Media
advertising includes magazines. ne,vspaprirs.
radio and television programs. direct maiL
exhibits. and the like.
b. The only advertising costs allowable are
lhose which are solely lor (i) the recruitment
of personnel when considered in conjunction
with all other recruitment costs, 89 set forlb
in paragraph 40: ,(ii) the procurement of goods
and servicl's: liii) the disposal of surplus
materials acquired in the perlormance of the
award except when organizations are
reimbur~ed for disposals at a predetermined
omounl in accordance with Allechment N of
OMU Circular A-11O; or (iv) specific
requirements of the award.
2. Bad dobts. Bad -debts. including ICXlses
(whether aclual or estimated) ariBing from
uncollectible accounts and othor claims,
related collection costs, and rclsl(l.j legal
cosls. arc unallowable.
3. Bid and propo~al costs. [reserved)
4. Bvnding costs.
'.
,
,
\
I
Office of Management and Budget Circular A-122 (6/27/80)
a. Ooncling costs arise wh(ln the
Governmcnt requircs.assurance against
{inllncialloss 10 it.scH or others hy reason of
thr. ar.t nr de/aull o{ the organization. Thcy
IIrisl' olso in instance, where the organization
rp.quires similar assuranoe. Included are such
bonds as bid. performance, payment.. .
ad\lmce payment. In{ringemenL and {Idehly
bunds.
b. Custs of bonding required pursuant 10
the tcrn's of the awa:d IIr!' allowllhle.
c. Costs of bonding required by the
org,loi7.alioo in the general conduct of its
operations arc allowable to the extC1ltthat
such bonding Is in accordnnce with sound
l.HIsiness practice and the rates Rnd pTemiums
IHe reasonable under the circumslances.
5. Communication DO!ltS. Costs incurred for
tclephnne services. local and long distance
tclephone calls, tclegrams. radio!lra(IU;.
postage Sind thc hke, are allowable.
6. Compensation for person oJ serl'ices.
a. Definition. Compensation {or personal
scrvlccs includes 1\\1 compeOlsalion paid
currently or accrued by the organil:alion for
services of employees rendered during the
period of the award. (execpt os otherwise
provided in paragraph g. below). It includes,
but is nollimited to, salaries, wRges,
director's and executive comrniltee member's
fees, incenti\'e awards. fringe benefits,
pension plan costs, allowances for oIT-site
pny. incentive pay. location allowances.
herdship pay. aod cosl of li\'ing differentials,
b. AllowabiJity. Except as otherwise
speCifically provided in this paragraph the
costs of such compensation are allowable to
lhe extent that:
(1) Total compensation lo.individual
employees is reasonable for the services
rendered and conIorms to the established
policy of the organization consistently
applied to both Govemmentllnd oon-
Government activilies: and
(2) Charges to awards whether trealed as
dircct or indirect cosls are dete.mined and
supported a\ required in this paragraph.
c. ReasonabJCJ1ess.
(1) Wben the organization is predominantly
engaged in activities other than those
sponsored by the Government. compensalion
for employees on Government-sponsored
work will be considered reasonlible to the
extent thalH is consistent with that paid for
similar work in the organi:t8lio'n's other
activities.
(2) Wheo the orgenizalion is predominlintly
engaged in Government.sponsored activilies
and in cases where the kind of employees
required for the Government activities are
not found in the organizatioo's other
activities, compensation for employees on
Covernment-sponsored work will be
considered reasonable .to the extent thai il is
comparable to that paid for similar work in
the la bor markets in which the orgllniza lion
compctes for the kind of employees involved.
d. SpeciaJ considerations in determining
allowobiJitJ'. Certain conditions require
special consideration and possible limitations
In determining costs under Federal awards
where amounts or types of compensation
appear unreasonable. Among such conditions
ore Ihe following:
(1) Compcnsu tion to membcrs of nonprofit
orpaniz:<:lions, trustees. directors. a~sor.iRtes,
officers, or the immediate families thereof.
Detcrmination should he made that such
compensation is reQs'moLle lor the aclual
personal servic:es rendered rllther than a
distribution of earnings in excess of costs.
(2) Any change io an o"Rllllization's
compensation polic:y rcsulling in a
substantial increase in the organi:r:ation's
level of compensation, particularly when it
was concurrent with an increase in the ratio
of Government awards to other activities of
the organization or any change ia the
treotment uf allowal:iilit}' of specific types of
compensatiun due to changes in Government
policy.
e. Unallowable casts. Costs which ore
unallowable under other paragraphs of thi5
^ltachment shall not be allowable under thi5
paragruph solely on the basis thai they
constitule personal compensation.
f. Fringe benefJls.
(1) Fringe benefits in Ihe fonn of regular
compensation paid 10 employces during.
periods of authorized absences from Ihe lob.
such as vacalion leave, sick leave, mililar~'
leave, aud the like. arc allowable provided
such cosls are absorbed by all organization
activities in proportion to the rcla tive amount
of time or efforl actually de\'oled to each.
(2) Fringe benefits in tbe form of employer
conlributions or expenses for social security,
employee insurance, workmen's
compensation insurance, pension plan costs
(see paragraph g. below). and the like, are
allowable provided such benefits ere granled
in accordance with established writlen
organizatioo policies. Such benefits whether
treated RS indirect costs or liS direct costs,
shall be distribuled to particular awards and
other activities in a manner consistent wilh
Ihe pattern of benefits accruing 10 the
individuals or group of employees whose
salaries and wages are chargeable to such
awards and other activities.
p)(a) Provisions for a reserve under a self-
inSurance program for Wlemplormenl
compensalion or workmen's compensation
arc allowable to Ihe exlent Ihalthe
provisions represent reasonable estimates of
the 1i3bilitiec for such compensation, IInd Iho
types of coverage, exlenl of coverage, and
rates and premiums would have been
allowable had insurance been purchased 10
cover the risks. However. provisions for self-
insured liabilWes which do not become
payable for more than one year aller lhe
provision is made shall not exceed the
present value of the liabilily.
(b) Where an organization follows a
coosislent polcy of expensing actual
paymenls to, or.on behalf or. employees or
'[ormer employees for Wlemployment
liO-nipensation or workmen's compansation,
such.payments are allowable in the year of
-payment with the prior approval of the
ewarding agency provided they are allocaled
to.aIl activities of the organization.
(4) Cosls of insurance on the lives of
lrustE'es. officers, or Olher employees holding
positions of similar responsibililY are
allowable only to the extent thai the
insurance represents additional
compensation. The cosls of such insurance
when the organization is named as.
J
A-122:5
beneficiary are unallowable.
g. Pension pIon costs.
(1) Costs of the organization's pension plan
which arc incurred in Bccordance with the
established policies of Ihe organization are
allowable, provided:
(a) Such policies meet the test of
reasonableness;
(b) The methods of cost allocation are not
discriminatory; .
(c) The cosl assigned 10 each fiscal year is
delermined in accordance with generally
accepted accounting principle~ as prescribed
in Accounting Principles Board Opinion No. B
issued by the American Institute 01 Certified
Public Accounlants: and
(d) The cosls assigned to a.given fis.ca~ ye.ar
ere funded for all plan participants Within SIX
months ailer the end of that year. However,
increases to normal and past service pension
costs caused by a delay in funding the
actuarialliabilily beyond 30 days aller each
qunrler of the year to which such costs arc
assignable ore Wlallowable.
(2) Pension plan termination insurance
premiums paid pursuant to Ihe Employee
Relirementlncome Security Acl of 1974 (Pub.
L. 93-400) are allowable. Late payment
ch'lrges on such premiums are unallowable.
(3) Excise taxes on accumulated funding
defIciencies and other penalties imposed
under the Employee Retirementlncome
Securit}' Act are unallowable.
h. Incentive compensation. Incentive
compensation to employees based on cost
reduction. or efficienl performance,
suggeslion awards. safety awards, etc., are
allowable to the exlentthal the overall
compensation is delermined to be reasonable
and such costs are paid or accrued pursuant
to an agreement entered into in good failh
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 crlect. an agreemenl to make such
payment. .' .
i. Overtime, extra pay shift, and multJshift
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 salarie~ and
wages, whether Irealed as direcl costs or
indirecl costs. will be based on documented
payrolls approved by a responsible official(s)
of the organization. The distribution of
salaries and wages 10 awards must be
supported by personnel activity reports as
prescribed in subparagraph (2) below, except
when a substilute system has been approved
in "''Titing by the the cognizant agency. (See
paragraph E.2 of Attachment A)
(2) Reports reflecting the dislribution of
activity of each employee must be
maintained lor all staff members
(professionals and nonprofessionals) whose
compensation is charged, in whole or in part.
directly 10 awards. In addition, in order to
support the allocR lion of indirect cosls. such
rcports musl also be maintained for olher
employees whose work involves Iwo or more
luncitons or activities if a distribution of their
compensation between such functions or
nclivilies is needed in the delermination of
I
\
1
.
,
_J
Office of Management and Budget Circular A-122 (6/27/80)
theorganizotion's indirect cost rate(s) (e.g..
an employee engaged part-lime in indirect
cost activities and pert-time in a direct
function). Reports maintained by nonproLt
organizations to satisfy these requirements
must meet the foJlowing standards:
(a) The reports must renect an after. the-
fact determination o( the actual activity of
each pmployee. Dudget estimates [i.e.,
estimates determined before the services are
performed) do not qualify as support (or
cll"rges to awards.
[b) Euch report must account (or the total
activity (or which employees are
cmnpcIls8ted and which is rcquired in
(ulfillment of thcir obligations to the
organization.
[c:) The rcports must be signcd by the
individual employee, or by a responsible
supervisory official having first hand
knowledge o( the activities performed by the
employee. that the distribution of activity
represents areasonable estimate of the
actual work perform ad by the employee
during the periods covered by the reports,
(d) The reports must be prepared at least
monthly and must coincide with one or more
pay periods.
(3) Charges for the salaries and wages of
nonprofessional employees, in addition to the
"supporting documentation described in
subparagraphs (1) and (2) above. must also
be supported by records indicating the total
number of hours worked each day
maintaioed in conformance with Department
of Labor regulations implementing the Fair
Labor Standards Act [29 CFR Part 516). For
this purpose, the term "nonprofessional
employee" shaJl have the same meaning as
"nonexempt employee," under the Fair Labor
Standards Act.
(4) Salaries and wages of employees used
in_meeting cost sharing or matching
requirements on cwards must be supported in
the same manner as salaries and wages
claimed for reimbursement from awarding
agencies.
i, Contingency provisions. Contributions to
8 contingency reserve or any similar
provision made for events the occurrence of
which cannot be ioretold with certain!v as to
time, intensity. or with an assurance of their
happening, are unaJlowable. The term
"contingency reserve" excludes self.
insurance reserves (Eee paragraph 6.f.(3) and
10.a.(2)[d)): pension funds (see paragraph
6.[g)): and reserves for normal severance pay
(see paragraph 44.[b)[1).
8. Contributions. Contributions and
dona tions by the organiza tion to others are
cnaJlowable.
9. Deprecioiion ond use aliowances.
a. Compensation for the use o( buildings,
other capital improvements, and equipment
or: i>and ma:' be made through use
?lI11....'an~es or depreciation. However. except
as pr'1\'idcd in paragraph f. below a
cCIlnuii1ation o( the two methods ma\' nol be
"sed in connection with a single dass of
fixed Hs_ets le.g.. b~lildings. office equipment.
conlputer equipment. etc.).
b. The computation of use allowances or
';',preciatic-.n shall be based on the
;;l~,!l!isition cost of the assets involved. The
uc:ot;:sition cosl of an asset conaled to the
or~anization by 8 lhird part~' shall be Its lair
market value at the lime 01 the donation.
c. The computation of use allowar.ces or
deprecia tion will exclude.
(1) The Cosl of land:
(2) Any portion o( the cost of bui:dings and
equipment borne by or donatcd by the
Federal Government irrespective of where
title was oriE:inally vcsted or where it
presently resides; and
(3) Any porlion of the cost of buildings and
equipment CO'1tributcd by or (or the
orgHnizatiun in satisfaction of a slatutor)'
matching retirement.
d. Where the use allowance method is
followed, the use allowance for buildings and
improvemenl (including land improvements
such 8S p.wed roa/king areas. fences. and
sidcwalks) will be c:omputed al an annual
rate not exceccins two percenl o( acquisition
cost. The use allowance (or equipment will
be compuled at an af/nual rale not exceeding
six and two-Ihirds percent of acquisition cost.
Whcn Ihe use allowance method is uscd for
buildings, the entire building must be trealed
os a single asset: the building's components
(e.g. plumbing system. heating and air
conditioning, etc.) cannot be segregated from
thc building's shell. The two percent
limitation. however. need not be applied to
equipment which is merely a:tached or
iastened to the building bul not permanently
fixed to it and which is used as furnishings or
decorations or lor specialized purposes (e.g..
dentist chairs and denial treatment units.
counters, laboratory benches holled to the
fluor, dishwashers: carpeting. etc.). Such
equipment will be considered as nol' being
permanently fixed to the building if it can be
removed without the need for costl\' or
extensive altera tions or repairs to ihe
building or the equipment. Equipment that
meets these criteria will be subject to the six
and two-thirds percent equipment use
allowance limitation.
e, Where depreciation method is followed,
the period o( useful service (useful liCe)
established in each case for usable capital
essets must take into consideration such
(actors as type of construction, na ture of the
equipment used, technological developments
in the particular program area. and the
renewal and replacement policies followed
ior the the individual items or classes of
assets involved. The method of depreciation
used to assign the cost of an Rsset [or group
of assets) 10 accounting periods shall reDect
the pattern of consumption o( the asset
during its useful life. In the absence of clear
evidence indicating that the expected
consumption of the asset will be significantly
grea ter or lesser in the early porlions of its
uscfullife than in the later portions. the
straight-line method shall be presumed to be
the appropriate method. Depreciation
methods once used shall not be changed
unless upproved in advance by the cognizant
Feeeral agency. When the depreci;;lion
method is introduced for application to assels
previously subject to a use allowance. the
combinil tion of use all'Owances and
cicpreciation applicable to such assets must
not exceed the 10la1 acquisition cost of the
assels. VI'hen the depreci"lIon method is used
fl'r huiJdinJ:ls. a bllildiJl~'s shell may ue
A-122:6
segregated Irom each building component
(c.g.. plumbing system. heating, and air
conditioning system, elc.) and each item
dcprcciated over its estima'ed useful life; or
the entire building (i.e.. the shell and all
componenls) may be trcaled 8S a single asset
and depreciated over 8 singlc uscfullife.
C. Whcn the depreciation method is used
for 1I particular class of assets, no
depreciation may be allowed on any such
asr-ets lhal. under parogrRph e. above. would
be viewcd as fully depreciated. However, A
rcasonllble use allowance mill' bc ncgotiatcd
fur 8uch asscts if warranted allcr taking into
cunsidcration thc amount of deprcciation
previously chargcd to the Government, the
estimated uscfullife rcmaining at time of
negotiution, the effect o( any incrcRscd
mainlcnance chargcs or decreased efficiency
due \0 age, and any othcr faclors pertinent to
.the ulilizHtion 01 the asset (or the purpose
contemplated.
g. Chargcs for use allowances or
depreciation must be 811pported by adequate
property rccords Rnd physical invcntories
must be taken at least once every lwo years
[u stati.tical sampling basis is acceptablc) to
ensure thaI assets cxist and are usable and
needed. Whcn thc depreciation method is
fullowed, adequa te deprecia tion records
indicating the amount o( depreciation taken
cach period must also be maintained.
10. Donalions
a. Scrvices received.
(1) Dunated or volunteer services may be
furn:shed to an organization by prolessional
and technical personnel. consultants, and
olher skilled and unskilled labor. The value
of these services is not rcimbursable either as
a dircct or indirect cost.
(Z] The value of dunated services utilized
in the performance or a direct cost aclivity
shall be ccmsidered in the determination of
thc organization's indire'cl cost rate[s) and,
accordingly, shall be allocRted a
I'roportion~te share o( applicable indirecl
costs when the (ollowing circumstances exist:
(al The ag3~egate "Rlue of the services is
nwtcrial;
(b) The services arc supporled b~'-f
signific'mtamnunt of lloe i~lirect costs. _ .
incurrcd by the organizR lion:
lc) The dirr.ct cost activity is not pursued
primarily (or the benefit o( the Federal
Guvlmlment.
[:J)ln those illstanccs where therc is no
basis (or determining the fair market value of
the services rendCTed. the recipient and the
cognizanl agency shall negotiate an
nppropriale aiiocution of indirect coslto the
sen.-ices.
(4) Whcre dona led scrvices directly benefit
a ;:rojcct supporled by an a .....ard. the indirect
costs allocated to the services "ill be
considered as a parI of the total costs o( the
project. Such indircct costs may be
reimbursed under the award or used 10 meet
cost sharing or matching requirements.
[5) The value of t!'le donated servicl:s may
lw used 10 mecl cosl sharing or malching
re~uirements under conditions described in
/'.Itachment E. OMB Circular ;0\0. A-ll0.
\'\:hcre Dona led services ure treated as
indirect costs. indircct cost rales will
s"paral~ the value or the donations so that
'.
,
.
'\
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
vo)untel:rs shall be consistent with those
regular ra tes paid for similar work In other
activities of the organization. In coses where
the kinds of skills involved arc not found in
the other activities of the organization, the
rates used shall be consistent with those paid
for similar work In the labor market in which
the organization competes for such skills.
(b) Services donated by other
organizations, When an employer donates
the services of an employee, these services
shall be valued at the employee's regular rate
of pay (exclusive of fringe benefits and
indirect costs) provided the services are in
the wme skill for which the employee is
normally paid. If the services are not in the
same skill for which the employee is normally
paid, fair market value shall be computed in
accordance with subparagraph (aJ alJove.
b. Goods and space.
(1) Donated goods; I.e.. expendable
personal property/supplies. and donated use
of space may be furnished to an organization.
The value of the goods and space is not
reimbursa ble either as a direct or indirect
cost.
(2) The value of the donations may be used
to meet cost sharing or matching share.
. requirements under the conditions described
In Attachment E, OMB Circular No. A-110.
The value of the donations shall be
determined 10 at:cordance with Attachment
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 morale, health. and welfore,
costs and credits. The costs of house
publications. health or first-aid clinics, and/
or infirmaries. recrea tional activities,
employees' counseling services, and other
expenses incurred in accordance with the
organization's estalJlished practice or custom
for the impro\'ement of working conditions,
employer-employee rela tions, employee
morale, and employee performance are
allowable. Such costs will be equitably
apportioned to all activities of the
organization. Income generated from any of
these activities will be credited to the cost
. thereof unless such income has been
irrevocably set over to employet' welfare
orga niza t ions.
12. Entertainment costs. Costs of
amusement. diversion. social activities.
ceremonials, and costs relating thereto, sucl.
as meals', lodging. rentals. transportation, and
gratuities are unallowable (but see
p::rngrilphs 11 and 25).
13. Equipment and other capitol
e.\iJenditures.
a. As used in tbis parngraph. the following
tcr,:r'..;l.ha\'c.Lhe.mll,!ninm; set forth below:
(1) "Equipment" means-;~'~rticle of
noncxpcndable tangible personal propcrly
haVing a uscfullife of more than two vears
arid an acquisition cost of $500 or mo;e per
Unit. An organization ma\' use its own
definition provided that i't at least includes all
no~expendu ble tangible personal property as
defincd herein.
(2) "Acqui~ition cost" means the net
invoice unit price of an item of equipment,
including the cost of any modifica tions,
attachments, accessories, or auxiliary
apparatus necessary to make it usable for the
purpose for which it is acquired. Ancillary
charges, such as taxes, duty, prolective in-
transit insurance. freight, and inslallation
shall be included in or excluded from
acquisition cost in accordance with the
organization's regular written accounting
practices.
(3) "Special purpose equipr'lent" means
equipment which is usable only for research,
medical. scientific, or technical activities.
Examples of special purpose equipment
include micr05copes. x-ray machines, surgical
instruments. and spectrometers,
(4) "General purpose equipment" means
equipment which is usable for other than
research, medical. scientific, or technical
activities, whether or not special
modifications are needed to make them
suitable for a particular purpose. Examples of
general purpose equipment include office
equipment and furnishings, air conditioning
equipment, reproduction and printing
equipment, motor vehicles, and automatic
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 $1000
or more have the prior approval of the
awarding agency.
c. Capital expenditur.es for land or
buildings are unallowable as a direct cost
except with the prior approval of the
awarding agency,
d. Capital expenditures for improvemerits
to land. bcildings, or equipment w.hich
materiallv increase their value or useful life
are unall~wable as a direct cost except with
the prior approval of the awarding agency,
e. Equipment and other capital
expenditures are unallowable as indirect
costs. However, see paragraph 9 for
allowabilit\' of use aliowances or
depreciatio"n on buildings, capital
improvements. and equipment. Also, see
paragra~h 42 for allowability of rental costs
for land, buildings. and equipment.
14. Fines ond penalties. Costs of fines and
penalties resulting from violations of. or
fa:Jure of the organization to comply with
Federal. State. and local laws and regulations
are unallOWable except when incurred as a
result of compliance with specific provisions
of an award or instructions in writing from
the awarding agency. .
15. Fringe benefits. See paragraph 6. f.
16. Idle facilities and idle copocity.
a. As used in this paragraph the following
terms have the meanings set forth below:
(1) "Facilities" means land and buildings or
any portion thereof. equipment individually
or collectively. or any olher tangible capita'!
as~cl. wherever located. and whether ov."Tled
or leased by the or6aniza tion.
(2) "Idle facilities" means complclelv
ulllI&.ed facilities tha: arc excess 1'0 the'
organi:z.ation's curren I needs.
(:Jj "Idle c!!;JRci:y" means the unll~ed
.1
A-122:7
capacity of partially used facililies. It is the
difference betweeD that which a facility
could achieve under roo per cent opera ling
time on a one-shift basis less operating
interruptions resulting from time lost for
repairs, setups. unsatisfactory materials. ana
other normal delays, and the extent to which
the facility was actually used to meel
demands during the accounting period. A
multishifl basis ma}' be used if it can be
shown thai this amounl of usage could
normally be expecled for the type of facility
involved,
(4) "Costs of idle facllitics or idle capacity"
means costs such BB maintenance, repair,
housing, renl. and other related cosL~; e.g.,
property laxes, insurance, and depreciation
or use allowances.
b. The costs of idle facilibies are
unallo\~able except to the exlcnt thOlt:
(1) The}' arc unneces~ary \0 meet
nuctualions in workload: or
(2) Although not necessary 10 meet
nuctuations in workload. they were
nr.cessary when acquired and are now idle
because of changes in program requirements,
efforts to achieve more economical
opera lions. reorganiz.a tion, termina tion, or
other causes which conld not have been
reasonably foreseen. (:nder the exception
slated in this subparagraph, cosls of idle
facilities arc ullowable for a reasonable
period of time, ordinarily not to exceed one
year. depending upon the initia tive taken to
use. lease, or dispose of such facilities [but
see paragraphs 47.b. and d.).
c. The costs of idle capacity are normal
costs of doing business and arc a factor in the
normal nuctuations of usage or indirect cost
ra tes from period to period. Such costs are
allowable. provided the capacity i8
reasonably anticijlated to be necessary or
was originally reasonable and is scbject to
reduct:nn or elimination by subletting.
renting. or sale, in accordance with sound
business. economit:s. or security practices.
Widespread idle r.apac.ity throughout an
enl:re lacilily or amons a group of assets
havir." substantially the same function may
be idie facilities. '
17. hrl'!;;.=ndcnt rescC1(Ch and dovE;lopmenl
lReser....~cl\. .
18. Insurance and indemni{icclior.. I
a. Insurance includes insu~ance which the
organization is required to carry. or which is
approved, under the terms of the "ward and
any other insurance which the organization
maintains in connection with the general
conduct of its operations, Thi~ paragraph
does not apply to insurance which represents
fringe bent>fits for emr10yees (zee pa:-agraph
6.1. and 6.g.(2)).
(1) Costs of im:lrance r~quired or
ar-proved. and maintained.. pursuant to the
award arc allowable.
(Z) Costs of olher inslJrance maint:oined b\'
the orgQnization in connection wilh the .
general conduct of its opel'aljons are
ullowable subject to the following limita lions.
(a) Typp.s and extent of coverage shall be
in accordance with sound business praclice
and the rates and premiums shall be
rp.asonnbie under the cir;:;umstance~.
[bl Cnsl3 Allowed for business interruption
or olher similar insurance shall be limited 10
"
.
f
\
I
Office of Management and Budget Circular A-122 (6/27/80)
~xclude coverage of m<lnagem~nt fr.r.~.
(e) Cosls of insurance or of any pr<"),,;~icn5
for a reserve covering the risk of loss or
d~I1lBge to Government propcrly are
allowablc only 10 the !'xtcntthal Ihe
orl!~nization i~ Iinhle for such los~ OJ" d~maC!I~.
IJ) Provisions for 8 reserve unJer a ~elf-
insurar,ce prr.STam err. allowablr. to the
exlentlhat types of coverage. cxt"n! of
covera'ge. rn!e8. ahd premiums woule! have
been allowed had if'.surnnce been pllrl;hased
10 ClJv.:r the risks. Howcver, provision for
r.nnwn or reasonably estimated sr.lf-i;1~ured
liabilities. which do noi become paya1>ie for
more thJn one year after the prnvisior: is
made sholll:ot exceed the present vnlue of
the liability.
(e) Costs of insurance on the Ii'ves of
trustees. officers. or other e;nployer.~ holrling
positions of similar responsibilities ace
allo....able only to the extent lhotlhe
insurancerepresenls addiliona\
compensation (see pnragrllph 6]. The cost of
such insurance when Ihe orga niza tion is
identified as thc beneficiary is unallow;;ble.
(3) Actual losses which could ho\'e been
covered by permir.~ible insurance (throuc:h
the purchase of insurar::;c or a self-insurance
program) are unallowable unless expressly
provided for in the awarrl. except:
(a) Cosis incurred because of losses not
covered under nomin<ll deductible insurance
coverage provided in hoping with sound
business practice are aIJowable.
(b) Minor losses not coverr.d by insurance,
such as spoilage, breakag~. and
disappearance of supplies, which occur in the
ordinary course of operations, are allowable.
b. Indemnification includes securing the
organiza lion against lia bilities to third
persons and an)' other loss or damag'?. not
compensated by insurlmce or otheJ"\'\'ise. The
Government is obligated to indemnify the
organization only to lhe extent expressly
provided in the award.
19; Interest, fund raj.~jng. and investment
management costs.
a. Costs incurred for interest. on borrowed
capital or temporary use of endowment
fund~, however represented, are unallowable.
b. Costs of organized fund raising.
including financial campaigns. endowment
drives, solicitation of gifts and bequests. and
similar expenses incurred ;;olely to raise
capital or oblain contributions are
unallowable.
c. Costs of invcstment eounsp.! und staff
and similar expenses incurred solely to
enhnnce income from Invcst:nenls ore
unallowuble,
d. Fund raising and investmcnt uctivilies
shall be allocated an appropriate :,harp. of
indirect costs under the conditions described
in paragraph B of Alt<lchment A.
20. Labor relations costs. Costs incxrred in
maintaining salisfactory re:ations be\'.-..een
the organizulion and its employees,incluujn~
costs of labor muOlagemcnl r.omlOlillees. -
employee publicotions. and other rclutec!
activilies arc allowable.
21. Lasses on other awards. Anv excess of
costs over income on any award ts
u;1~Il?wable as a cost of eny other awaro..
TnlS meludes, but is not limited 10. the
organization's contributed portion by reA~on
of casl sharins lIgreemcnt3 or any
underrecoveries through negotiation of lump
sums for, or ceilings on, indir~ct co~ts.
~2. /l.faill!enance and repoir cost.s. C,~sts
incum,d for ",~c~ssary maintenance, rcp~ir.
(H upkeep cf bllildings IInd eqllir>ment
(incl,aling Government pre-perty unless
o:herwi~e provided for) which neither add 10
the permanent ,'alue of the property nor
appreciably prclong its inlendeJ life, but
ke~p it in an efficient operalbll conoilipn, are
nll()wahle. Costs incurred for iT"pm,'emcnts
whi(.h Add to the perm:lIlent value of Ihe
buildings anu equipment or appreciably
prolong their intended life shsll be trented as
ca;:ilal exp!'ndil~res (~ee per:1gmph 13).
23. Mvterials and sllpplie.s. The cost~ of
materials Ancl supplies nccessal1' 10 carry out
nn nward are a!:()wable. Such cost~ should be
charged atlheir actual prices after deducting
all cash di~:counts, lrode disr:ounts, rebales,
and llllowances recei'/ed 1>y the orsaniz:!lion.
VVilhdr-awals from genelaJ stores or
stockrooms should be charged at cosl under
anj' recognized method of pricing
consistently applied. Incoming transportation
charges Inay be a proper part of m:Jleriul
cost. Materials and supplies chargcrJ'as a
dir(:ct cost should include only the D1nlerials
and supplies actually used lor the
performance of the contract or grant. llr.d oue
credit should be given for ony exce~s
materials or supplies retained, or return"d 10
vendors.
24. Meetings, conferences.
a. Costs associated with the conducl of
meetings. and conferences. and include the
cost of renting facilities. men Is. speakers'
fees, and the like. But see paragraph 12,
Enter!ainment costs, and paragraph 29.
Participant suppcrt costs.
b. To the extent that these CQsts are
identifiable with a particular cost objeclive.
they should be charged to that objective. (See
paragraph B. of Attachmenl A.) These costs
are ailowable provided that they meetlh,.
general tests of allowa 1>le. shown in
Attachment A to Ihis Circular.
c. Costs of meetings ar:d conferences held
to conduct the general administration of the
organization are allowable.
25. Memberships, subscrIptions, and
professional octiviil' costs.
a. Costs of the organization's membership
in civic. business, technical and profp.ssional
or~aniza tions are allowa ble.
b. Cosls of the organization's subscriptions
to civic. business. professional. and technical
periodicals are allowable.
c. Cosls of allendancp. at meetings and
conferences. sponsorcd by olhp.rs when the
primary purpose is the d;sscmination of
led:nicnl informa\ion. arc allowable. This
inr.luJos costs of meals. tra'lsportali'cn. and
.other itr.ms incidenlalto such atlend;!nce.
26. Orgonizotion costs. Ex~enditure~, such
OlS incorpora:ion fees. brok['rs' j~~s, fees 10
promnlers. organizers or manage.nen:
c(Jn~ultanls. atlome\'s. account;:mls, or
Inve~tmont counsel~rs, wh('ther or not
~n~IJloyees of the organiza tion, in connection
wilh esl<lblishment or reo~ganizalion of an
orguniza lion. are unallowable except wilh
prior appruvlll of the awarding agency.
2i. Ol'ertimc. ex/ro.pol' s/IlII. and
I
A-122:8
nlv/!Jshi.ti pn ~I/ivms. Premiums for o\erlim.,.
['xllil.pay shifls. and tn\lllishift wor\.. arc
IILo\\'a\"1..: llniy wi:h lhe prior <<ppro'dl of :l:P
lJ w,lrcJ~ng :~g("ncy e).,(;cpl:
a. Whenlll;ce~sMY \0 cope with
er.lc~ecnl:ics, such ::~ Ihose Icsulling fruOl
u,,,,,i.,;:... natuJ;lI di~us\('rs. brea:"downs of
r.1/l,ipn'~nl. or ('(;(::1si()n"l ol'erillinnnl
klltlc~rcl.:s 01 iI sporudic nature.
h \'\'l1c" e::lpioyees Arc perlurr.ling indirl:ct
l"ncli')lIs such us ,nlministrutioll.
n~;,lin!('nancr.. or oCl,;uunting.
c. In the pl'rformililce of test~. lubnralory
prlll'I:Jures. ur uther similar operations whic;n
ore GO;.(:i1UO\lS in n.' ture and cannot
reasrHl~~i:.. be inlcrr'lptcd or lllhcrwis'!
COI11~I:~:!:.u.
d. Whl'n IU\'llI" overull cost tu the
(;o';crr.:lleDI will resull.
211. l';:gc c;horgc. in professional journals.
PilllC cl.lITges for professional journal
publica lions arc allowable as a necer.snry
pari 01 resenrch cosls. where:
a, The rese"rdl pupers report work
sUl'pnrld ".I' the Go,'ernment: ond
b. The c\;argcs nre levied impilrlill~ly on :i11
resl:art.h r;.Jpers published 1>.1' the journat.
whelh'~r or nn~ by Government.sponsored
authors.
2fl. l'r.rtiL.ipo!/t Slipport c.:>sts. Par~icipanl
support cosls arc direct cosls for ih~ms such
as stipend. or subsistence allowllnces, Ira vel
nllowunr.es. "nu registration fees paid 10 or
on behalf (Jf pnrticipants or troinees (but not
emlJloycesj in connection with meetings,
C(lnferences. symposia. or training projects.
These cosls are allowable wilh the prior
i1pproval of the awarding agency.
30. ruiCJ;t costs.
a. Ccsts oi (i) preparing di.c:1osures,
reporls, and olher dl1cumenls requirr.d by the
aw;,rd :me of searching the arl to the extcnd
necessary 10 make such disclosures, (ii)
rrepuring documents and any olher palent
costs ir. conneclion with the filing and
prosec\llior. of a United statp.s p"lent
ilpp1icnli'ln where title or rOYlllty-free HermsI'
is reqllil':-d by the Governmen! to be
cO:l\'cyed io the Government. and (iii) general
counseling services rel<,ling to palell,and
copyright nllltters, GUch as qOvice on paten)
and copyright laws. regulations. clauses. ond
employee e!:cc-cments arc allowable (bllt see
pllr~graph 34).
b Cust of pr~parin8 discloslJreS, reports.
,1nu other uocuments snd of searching the art
10 thr. exlent necp.ssory 10 make di~r.losurr.s,
if nol reqt;:red by Ihe a ward, ue
unallowable. Costs in connection with (I)
filing and prosl:l;t;ting IIny foreign pa tent
application. or (ii) any Uniled Stales potent
;,pplicalioOl, where the Award does not
require conveying title or a royolty-frr.e
license to the Government. are unr.IJowo\llc
(also .ee paragroph 43).
31. Pension plans. See poragraph 6. g.
32. Plant sec::rity costs. Necessary
exrcnst:s incurred 10 comply wilh
Goverr:ment security requirements or for
facilities proteclion. including wages,
unilOlms, and equipment of personnel are
Illlowilhle.
33. I'rcolI'ard costs. Preaward costs are
those incurred prior to the effective date of
lIlt! award direclly pursllont to the
'.
~
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I
Office of Management and Budget Circular A-122 (6/27/80)
ncgo\iotion ond in anlicipatinn of the 'Iward
whl!Il' sULh costs is necessnry to comply wIlh
~he proposed delivery schedule or period of
I'erlorm;,nce. Such costs fire allowable only
10 :he e:<tent that tln'y would hRve been
~i\o\\'ab\e if incurrcd nfter the dllte of the
~wlJr,l and only with the writlC'n Bpprovf,l nf
lhl2 .~n\.'nrdiJlb ngcn~r.
34.l'mfcssional sen'ice costs.
n. Costs of profC'~sional and consll1tnnt
services rendereJ by persons who arc
r.:,"'\l>ers of R particular profession or possess
n sp~c:;al skill.anJ who arc not officers or
t'~i,ioyees of the org~l1ization, arc a!lowable.
subjcct 10 b. c, and d, of this p.;ragraph when
Tf~dSlll;al)lc in r'Jation.to Ihe scrviCl~s
renderC'd Rnd when nol contingentllpon
"'I:OVCI"\' of the costs from the Government.
b. In det~rming the allowabilily of r.osts in
B particular case, rio single factor or any
special combination of factors is necessarill'
determinative. However, the following
fodors are relevant:
(1) The nature and scope of the service
rendered in rela tion to the service required.
(Z) The necessily of contracting for the
service. cnnsidering the organization's
capability in the particulnr area.
(3) The past pattern of such costs.
particularly in the years prior to Government
awards.
. (4) The impact of Government aWards on
the organization's business [Le.. what new
prohlems have arisen).
(5) Vv-hether the proportion of Government
work to the organization's total business is
su,;h as to influence the organiza tion in favor
of incurring the cost. parlicul!lrly where the
services rendered are not of a continuing
nature a"nd have little relationship to work
under Government grants and contrllctS,
(6) Whether the service can be performed
more economically by direct emplo}'ment
rather than contracting.
(7) The qualifica tions of the individual or
concern rendering the service and the
custom>lry fees charged. especially on non-
Government awards.
(0) Adequacy of the contractual agreement
for the service (e.g.. description of the service.
estima teof time required, ra te of
compen~ation, and termination provisions).
c. In addition to the factors in paragraph b
<Jbove, retiliner fees to the allowable must be
Sllpported by evidenr.e of bona fide services
a\'ailahle or rendered.
d. Cost of lilgill. accounting, and consulting
~eT\'ices. and related costs incurred in
conn~ctionwithdcfense of antitrust suits;
and the prosecution of clai.:ns a8ainst the
Go\'ernment. arc \lnilllowable. Cost~ of legal.
ilc:;uunting und consulting services, and
rclated cusls, incurred in connection with
patent infringement litigation. organiz.ation
und reorgn!1ization. are unallowable unless
o.herwise prcovided fo;: in the aWRrd (but see
parngraph 47e).
35. Profits ond losses on disposition of
depreciable property or other capitol assets.
a. (1) Gains and 10R~es on sale, retirement,
or other disposition of ciepreciable property
sho.:lI be included in the year in which they
o~cur as cred:'~ or charges to cost grouping(s)
in whfch the depreciation applicable to such
property was included. The amount ~f the
~"in or loss to be inr.ludC'd as a credit or
dwrge to the appropriate co~t ~rol1ping(s)
sh..IJ be the di!fercnce between the amount
rt,alized on the property and the
undepreciated basis of the properly.
(2) Gains and losses on the disposition of
dl'f.reciable property shall not be recognized
n~ II separate credit or charge under the
foilowing conditions.
la)The gain or loss is proces~cJ through Ii
depreciation reserve accounl and is r(;nected
in the Jepreciation allowatJle under
pnrugropli 9.
(1)) The property is !;iven in exchnngC' a~
pari of the purcha~e price of a similar ilem
and Ihe gHin or loss is taken into lH;count in
dC'ermining the deprecia lion cost basis ollhe
new item.
(cJ A loss re~ults from the fllilure to
maintain permissible insurance. except 118
otherwise pn:rvided in ptlragraph 111.n.(3).
(el) Compensation lor the use of the
p/"CIperly was provided through use
aJlowances in lieu of depreciation in
occord,,"ce with paragraph 9.
(e) Gains and losses arising from mass or
C'xtraordinary sales. retirements. or other
dispositions shall be considered on a cose.
by'c8~e basis.
b. Gains or losses of any nature arising
from the sale or exchange of property other
than the property covered in paragraph o.
above ShllJl be excluded in computing award-
costs.
35. Public informatiun sen'ice casts.
a. Public information service costs include
the costassociated'with pamphlets, news
releases, and other forms of information
services. Sur.h costs are normaJly incurred to:
(1) Inform or Instruct indi\'iduuls. groups, or
the general public.
(2) Interest individuals or groups in
participating in a ser"/ice program 01 the
OIgsniz.ation.
(3) Disseminate the results of sponsored
and nonsponsored activities.
b. Public information service costs are
allowable as direct costs with the prior
a~pro\'al of thp. awarding agency. Such costs
ore unaJlowable as indirect costs.
37. Publication and printing cost!:.
a. publication costs include the costs of
printing (including the procl'~<es 'Of
composition. plate-making, press work.
binding, and the end products produced by
s~ch processes). distribution. promotion,
mailing. and general handling.
b. If the~e costs are not identifiable with a
particular cosl objective. IhC'y should be
allocated as indirect costs to 811 bencfiting
activities of the organization.
c. Publication and printing costs are
unailowable as direct Cosls except with the
prior npproval of the awnrding Ilgency.
d. The cost of page charges in journals is
addressed pRragraph 26.
311. R.earrangement. and alteration costs.
Costs incurred for ordinary or normal
rr:arrangement and alteration of facilities arc
allowable. Special a.rrangemenl and
alteTlltion costs incurred specifically for the
project are aJlowable with the prior approval
of the awarding agency,
39. Reconversion Cosls. Costs incurred In
the restoration or n:habllltation of the
organlUltion's IndlltiCll to approximately the
I
A-122:9
same condition existing immediately prior to
commencement of Government awards, fau-
wear and tear excepted, are allowable.
40. Recruiting costs. The following
recruiting costs are aJlowable: cost of "help
wanted" advertising, operating cosls of an
employment o[[ice, costs of operating an
educntionaltesting program, travel expenses
including lood and lodging of employees
while engaged in recruiting personnel. travel
costs of applicants for iotervicws for
prospective employment, and relor.ation COSIS
incurred incident to rccruilmenl of new
employees (~ee paragruph 41c). \^,1here the
organization uses employment agencies.
costs not in exccss 01 standard commercial
roles for ouch service~ are allownble.
41. Relocation cost.!;.
a. Relocation costs are costs inciJenl to the
permanent change of duty assignment (for an
indefinite period or for 8 stated period of not
less than 12 months) of an exiRting employee
or upon recruitment of a new employee.
Reloc.alion costs ore ullowublc. subject to the
limitation described in parugraphs b, c, und d,
below, provided that:
(1) The mo\'e 10 for the benefit of the
employer.
(2) Reimbursement to the employee is in
accordance with an established written
policy consistently followed by the employer.
(3) The reimbursement does not exceed the
employee's actual [or reasonably estimated)
expenses.
b. Allowable relocation costs for current
employees ore limited to the following:
(1) The costs of transportation of the
employee, members of his immediate fomily
and his household, and personal effects to the
new location.
(2) The cosls of fmding 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. including
advance trip time.
(3) Closing costs, such as brokerage. legal..
and appraisal lees, incident to the disposition
of the employee's lormer bome. These costs,
logethcr with those described in (4) below,
are limiled to 6 per cent of the'sales price of
the employcc's lorm~ bome. '.
(4) The continuing costs of owoership of
the vacant former borne after the settlement
or lease date of the employee's new
permanent home. such as mainteoance of
buildings and grounds (exclusive of fixing up
expenses), utilities, taxes. and properly
insurance,
(S) Other necessary and reasonable
expenses normaliy incident to reloc6 lion,
such as the costs of cancelling an unexpired
lease, disconnacting and reinstalling
household appliances. aDd purchasing
insurance again.t loss of or damages to
personal property. The cost of caocelling an
unexpired lease is limited to threa times the
monthly rentaL
c. AlJowable relocation cos16 for new
employees are limited to those de.cribed in
(1) and (2) of paragraph b. above. When
relocation cost. incurred iocidenlto the
recruitment of new employees have \>een
alloweO eitber all a direct or iJHiired cosI and
the employee Nl6igns lor reasons within his
,
~
I
I
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 the cosl.
However, the costs of travcl to an overseas
location shall be considered travcl costs in
accordance with paragraph 50 and not
relocation costs for the purpose of this
paragraph Ii dcpendents are not permitted at
the location for any reason und the costs do
not include costs of transporting household
goods.. . .
d. The following costs related to relocation
are unallowablc:
(1) Fecs and other costs associ~led with
acquiring a new home.
(2) A loss on thc solc of a formcr home.
(3) Continuing mortgflgc principal and
interest payments on a home being sold.
(4) Income .taxes pnid by fin employee
rela ted to reimbursed reloco tion cos Is.
42. Rental costs.
a. Subjcct to thc limitations describcr! in
parng:aphs b. through d. of this paragraph,
rcntal costs are allowable to the extent thai
the rates arc reasonable in light of such
factors as: rental costs of comparable
property, if any: market conditions in the
area: alternatives RvailalJle:and the type, life
expectancy, condition, and value of the
property leascd.
b. Rental costs under sale and leaseback
arrangements Rre sllowable only up 10 tbe
amount that would be allowed had the
organization continued to own thc property.
c. Rental costs under less-than-length
leases arc 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-anns-Iength lease is one
under which one party to the lease agreement
is able to control or substantially innuence
the actions of the other. Such Icases include.
but are not limited to those between (i)
divisions of an organization; Iii) organlzations
under c:ommon control througb common
officers, directors, or members: and (iii) an
organization Rnd a director, trustee. officer.
or key p.mployee of the organi;:;ation or his
immediate family either directly or through
corpnrations, trusts. or similar arrangemenls
in which lhey hold a controlling interest.
d. Rental costs under lea&es which create a
matcrial equity in the leased property are
allowable only up to the amour:; that would
be a!lowed had the organiza lion purr.hascd
the property on the date the lease agreement
was executed: e.g., depreciation or use
allowances. maintenance, taxes, insurance
but excluding interest expense &nd other
unallowable costs. For this purpose. a
ma terial equity in the properly exists if the
lease in noncancelable or is cancelable on!,
upon the occurrence of some remote .
contingency and has one OT/1)Ore of the
following characteristics:
(1) The organization has the right to
purchase the property for a price which at the
beg;nning of the lease appears to be
substantially less than the probable fair
market value at the time it is permilted to
purchase the property Icommonly called a
lease with a bargain purchase option):
IZ) Tille to the properly passes to the
organization at some lime during or a[ler the
lease period:
(3) Thc term of the lease (initial term plus
period, covered by bargain rcnewal options.
l! any) is equal to 75 per cent or more of the
economic life of the leased property: i.e.. the
period the property Is expected to be
econor:lically usable by one or more users.
43 noyolties and other costs lor use 01
pOl "r ond 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 pcrformance
of the award are allowable unlcss:
(1) The Govcrnmcnt has a license or the
right to free use of the putent or copyright.
(2) Thc pa tent or copyright has bccn
adjudicated to bc invalid, or has becn
administralivelv dctermined to be invalid.
(3) The paten't or copyright is considercd to
be unenforceable.
(4) The patent or copyright is expirnd.
b. Special carc should be exercised in
determining reasonableness where the
royalties may have been arrived at as a result
of less then arm's length bargaining: e.g.:
(1) Royalties paid to persons. including
corporations, affiliated with the organization.
12} Royalties paid to unaffiliated parties.
including corpora tions, under an agreement
entercd into in contemplation that a
Government awerd would be made.
(3) Royalties paid under an agreement
entered into after an award is made to an
organization.
c. In any case involving a patent or
copyright fonnerly owned by the
organization, the amount o[ royalty allowed
should not exceed the cost which would have
been allowed had the organization retained
title thereto.
44. Severance pol'.
a. Severance pay, also commonly rcferred
to as dismissal wages. is a payment in
addition to regular salaries and wagcs. 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. (H) emploYllr-
employee agreement, (iii) est'lblishcd policy
tha \ con:;titutes. in effect. an implied
agreement on the organi:-;ation's part. or (iv)
circuJnsta:lces of the particular employmcnt.
b. Ccsts of severanc:e p:Jyments are dividco
into two catego:ies as foHews:
(1) Actual normal trunover 6cvera::!ce
payments shall be allocated to all ac:tivities:
or. where the organization provides for a
T(~~erve [or normal severanc'!s such melhod
will be acceptable if the charge to current
operali()ns is reasona1:,le in !iSht of payments
actua]!y made [or nor::aal sevp.rances over a
representative past period, and if amount~
ch;;rged are allocated to all activilies of the
organization.
(2) Abnormal or mass severancc PLlY is of
such a conjectural nature that measurement
of costs by means of an accrual will net
<;chieve equity to both parties. Thus. accruals
[or this pu'pose are not allowable. Howevcr,
the GovernmEnt recogni7.e~ i~s oblit;ation to
participate to the extent of its [air sharc, in
any spccific payment. Thus. allowability will
be considcred on B casc-by.case basis in the
even I ofnccurrenc:e.
45. Speeioli.~ed ser.'ice laeilities.
a. The costs of serviccs provided by hi~hly
A-122:10
complex or ~pecialized [acilitics operated by
the organization. Ruch as elcctronic
computers and wind tunnels, are allowable
provided the charges for the services meet
the conditions of either b. or c. of this
paragraph and, in addition, take into account
any items of income or Federal financing that
qualify as applicable credits undcr paragraph
A.S. o[ Attachment A.
b. The cosls o[ such services, when
material. must be chargcd directly to
applicablc lIwards based on actual usage of
the services on lhe basis of a schcdulc of
rates or established methodology thai (i) does
not discriminate against fedcrally supported
activities of the organization, including usage
by the organization for internal purposcs, and
Iii] is designed to recover only tile aggregate
costs of.lhe service6. The costs of each
scrvice shull consist normally of both its
direct costs Hnd its allocable share of all
indircr.t COSIS. Advance agrecmcnts pursuant
to parugraph A.5. of Attuchment A arc
particularly important in this situation.
c. Where the costs incurred for a service
Rre not material. they may be allocatcd as
Indirect cosls.
40. Taxes.
a. In general. taxes which the organization
:s required to pay and whi:;h are paid or
.accrued inaccordunce with generally
acceptcd accounting principles, and
payments mode \0 local governments in lieu
of taxes which are commensurate wHh the
local government scrvices received are
allowable, except [or (i) taxcs from which
exemptions are available to the organizalion
directi\' or which are availiJble to the
organj~ation based on an c:>.emplion affordcd
the Government and in the lallcr case when
the awarding agency make~ available the
np.ceEsary exe!:'1;Jlion certificatcs. (ii) s;Jccial
aSGessmen!s on land which represent capital
improvements. and [iii) Fcderal income laxes.
b. Any refund of t~.xe6, and any pnymenl 10
lhe organization of inleresltherc()n. which
were allowed as award costs, w!'.1 be
creuilcd either as a cost reduction or ca~h
refund. as appropriate. to the Governmcnt.
47. Termillution costs. Terminali6n of
awaros gcnerally give ris. to the il'lcurrellce
of cost~. Qr the neer:l for special trenlmen\ of
cosls. which would not havc ariscn had the
award not been terminated. Cosl principles
C')vering thesc items are set forth below.
They are to bc uSlld in conjunction with the
'other provisio:1s of this Circul'Jr in
tcrmination situations.
R. Common items. The cu~t of items
reusanalJly usable on the organizalion's ether
work shall not bc a!lowablc unless the
org;H~izalion submits evidence that it would
not rctain such itcms at cost without
suslaining a loss. In deciding whether such
itcms are reasonnbly usable on other work of
the organization, thc awaruil:g agency shuuid
con.siucr the organization's plans and urders
for current and schedulcd activily.
Contemporaneous purchases of common
itcms by the organization shull be regarded
as evidence that such itcms are reasonably
u5uble on lhe organization's othcr work. Any
ac.ccpl'Joce o[ common items <is allocable to
the tcrminated portion of the award shall be
limiled to Ihe cxtcntthallhe q\lunlili"s or
...
.
"
I
'I
· Offlcl3 of Management and Budget Circular A-122 (6/27/80)
such items on hand. in transit. and on order
are in exc~s of the reasonable quantitative
requirements of other work..
b. CosLs continuing after lennination. U in
a paniculBr case, despite all reasonable
efforts by the organization. certain costs
cannot be discontinued immediately alter the
effective dale or termination. such cost.s are
generally allowable within the limitations set
forth in t.his CirculIlI. except that any such
costs continuing alter termination due to the
negligent or willful failW"1l of the organization
to discontinue such costs shall be
unalloweble. '
c. Lass of L'seful value. Loss o( useful value
o( special tooling, mochinery and equipment
wr.>:h was not charged to tbe eWllId as a
ca".ial !:xpenditure is generally allowable if.
i: , Such special tooling, mac!Jinery, or
eq, '.pOlent is not rellsonably capable of use in
UF, .,; tber work oC the orgeniz..a tion.
(::) The intcrest o( the Government is
;J:r Jr:t?d by transfer of title or "y other
mr-:lrlsdeemed appropriate by the awarding
a'~' r.cy;
",i. Rental cosLs. Rental costs under
u;-:l~xpired leases are generally allowable
.... ~'cre clearly shown to have been
fl..,~onllbly necessary (or the performance or
If~:-: terminated award less tbe residual value
0:' such leases. if (i) the amOU:lt of such rental
ci..imed does not exceed the reasonable use
va be of the property leased for the period of
tb aw~rd and such further ~riod as may be
re.:.ll)l:,:ble, and (ii) the orgllnization makes
all reasonable efforts to terminate. assign.
settle. or otherwise reduce the cost of such
lease. There also mev be included the cost or
elters tions or such le'ased property. provided
such al:erations were necessary for the
performance o{ the award. and of reasonable
restor;;tion required by the provisions of the
lease.
e. Seulement eXpenS8!!. Set'Jement
expenses including the following al"l'
genE'rally allowable:
(1) Accounting. legaL clerical. and similar
costs reasonably nec~ssary for:
(a) The preparation and presentation to
awardins agency of settlement claims and
supponing data with respect to the
termina ted portion oC the award. unless the
termination is for default. (See parugraph 4.a.
of Attachmcnt L OMB Orcular No. A-llO;
and
(0) The termination aDd settlement of
subawarW.
(2) Reasonable costE for the storage.
transportation. protection. and disposition of
property provided by the Government or
acquired or produced for the aware: except
when grantees are reimbursed for disposals
at a predetermined amolUlt in accordan~
with Attachment N oC OMB Circular A-ll0.
(3) Indirect costs related to s<llaries and
wages in~d as settlement expenSe1l in
subparagraphs (1) and (2) of this paragraph.
Nonnally. such indin!c1 cost.s shall be limited
to fringe beneIil". occupancy cosL and
immediate supervision.
!. Claims lmder subowards. Claims under
subaward.. including the allocable portion oC
claim. whic.h are common to the award. and
to other work of the organiz..a tion are
generslly allowable. An appropriate .hare of
tha organization's indirect expense may be
allocated to the amount o{ settlemenls with
subcontractor! .ubgranteel; provided that the
amount allocated is otherwise consistent
with the basic guidelines contained in
Attachment A. The indirect expense so
allocated shall exclude the same and similar
costs claimed directly or indirectly as
.ettlement expenses.
48. Training and educotion C061.s.
a. Cost.s of preparation a.nd maintenance oC
a program of instruction including but not
limited to on-the-job. classroom. and
apprenticeship training. designed to increas.e
tha vocational efiectivenen of employees,
including training materials, textbook.s,
ularies or wages of trainees (excluding
overtime compenution which might ari~
therefrom), and [i) salaries of the director of
training and stall when the training program
is. conductt<d by the organization; or (ii)
tuition and fees when tha training is in an
institution not operated by the organization.
are allowable.
b. Costs of part-time education. at an
undergraduate or postgraduate college leveL
including that provided at the organization's
own facilities. are allowable only when the
coune or degree punued is relative to the
field in which the employee i. now working
or may reasonably be expected to work. and
are limited to:
(1) Training material.a.
(2) Textbooks.
'(3) Fees charges by the tl<incatiollal
institution.
(4) Tuition charged by the educational
inlltitution. or in lieu or tuition. instructon'
salaries and the related share of indirect
costs of the educational i=titution to the
extent that the sum thereof is not in excess of
the tuition which would have ben paid to the
participating educational institution.
(5) Saiaries and related costs of instructors
who are employees of th" organizatioa..
(6) Straight-time cOmpllnS.lltion o{ each
employee for time spent attending clas8M
during working hours not in exces8 ol156
hours per year and only to the extent that
circumstances do not permit the operation of
classes or attendance at classes after ~
working hours: otherwise suc.h compeIlBation
is unallowable.
e. C"sts of tuition. fees. trainbg materials.
and textbooks (but not subsistence. salar)', or
any other emoluments) in connection with
full-time education. including that provided at
the organization's own {ac:ilities.. at a
postgraduate (but not undergraduate) college
leveL are allowable onlv when the coune or
degree punued is relate'd to the field in wh.ic.h
the employee is now working or may
reasonably be expected to work. aod only
wbere the co~ts receive the prior approval of
the awarding agency. Such costs are limited
to the costs attributable 10 a total period not
to exceed ooe school year for each employee
so trained. In unusual cases the period !Day
be extended.
d. Costs of attendance oC up to 16 week..s
per employee per year a t specialized
program. specifically designed to enhance
the elfecti veness of exe-cutives or ma=gen
or to prepare employees for suo positions
are allowable. Such costs include enrollment
i'l
A-122:11
fees. training materials, textbooks and
related charges. employee.' .alarie&.
subsistence. and traveL Cosu allowable
under th.is paragraph do not include tho~ for
courses that are part of a degree-oriented
curricwum. which are allowable only 10 the
extent set forth in b. and e. above.
e. Maintenance experule. and normal
depreciation or fair rental on facilities
owned or leased by the ol1laniz.ation for
training purposes are allowable to the extent
set fortb in paragraphs 9,22. and 42-
r. Cuntributions or donations to
educational or training institutions. including
tl:e donation o{ facilities or other properties.
and 8cholanhip~ or fellowships, are
unallowable.
g. Training and education costB in eXCC88 of
those otherwise allowable under paragraphs
...b. and c. o( thi~ paragraph may be allowed
wilh prior approval oCthe awa.rding agency.
To be considered for approval. the
organization must demonstrate that such
costs are consistently incurred pursuant to an
established training and education program,
and that the COur:le or degree pur:lued is
rela tive to the field in which the employee is
now working or may rea~oncbly be expected
10 woryw
49. Transportation casts. Transponatlon
costs include freighL express, cartage. and
postage charges relating either to goods
p\lrchased. in process, or delivered. These'
costs are allowable. When suc.h costs can
readily be identified with the itelIUl involved.
they may be directly charged as
transportation cosl" or added to !..he cost of
such items (see paragruph 23). Where
identification with the materials received
cannot readfly be made. trarulportat1oD costs
may be charged to the a.ppropriate indirect
cost accounts if the organization follows a
consistenL equitable procedure in this
re~pe~L
50. Travel cosLs.
a. Tra vel costs are the expenses for
transportation. lodging. subsistence. and
related items incurred by employees who are
in tra vel staM on official business of the
organizRtion. Travel costs are allowable
subject to paragraphs b. iliro\).gh e, below,
when Ihey are ~ectJy attributaole to specific
work under an award or.are irlCWTe<i in the
normal course of administration o{ tha
orga niza tion.
b. Such C08ts may be charged on an actual
bosis. on a per diem or mileage basis in lieu
of actual costs incurred. or on a combination
of the tWo. proTided the method used resulu
in charges consistent with tho~' normally
allowed by the organiza tion in its regular
opera tions.
e. The diIference in cost between first-class
air acco=odations and less than first-class
air accommodations is unallowable except
when less than first-class air
accolIunoda tiOOll a.--e not reasona bl)'
available to meet necessary mission
requirements. such as where less than first.
c1sss accommodations would (i) require
circuitous routing. (ill requin! travel during
unreasonable hours. [iB) greatly increase the
duration' of the Dight. (iv) result in additional
costs which would offset the transDorlatJon
s8vir.gs. or [v) offer Ilccommodotio'ns which
'I
,
L-
.
..
~. .
)fflce of Management and Budget Circular A-122 (6/27/80)
,re not reasonably adequate for the meilical
l~dB of the trBvelef'.
d; NeceseaI')' and rouonabtecoBts oC
amily movements and penonnel movements
of a spedal or ma81 nature are allowable...
~unuant to paragrupha 40 and 41. subject to
,!location on the basis of work or time period
ler.elited when appropriate. Advance
3greements are particularly importanl
e. Directchargea for foreign travel costs are
dlowable only when the travel bas received
:Jnor approval of .the awarding agency. Each
-cparate foreign trip must be approved. For
Jurposes of thia provision. foreign Ira vol is
jelined as any travel oul1lide of Canada and
:~e Unitcd States and its tenitories and
Dossessions. However, for an organization
,ocaled in foreign countries. the term "foreign
:ravel"' means travel outside that country.
:Circular,No. A-l22}
Allachment C
:-<onproflt Organizations not Subject to this
C~w
Aerospace Corporation. EI Segundo,
California
AI60nne Universities Association. Chicago.
Iliinois
Associated Universities'. Incorporated.
Washington. D.C.
Associated Universities for Research and
Astronomy, Tucson. Arizona
Atomic Casualty Commission. Washington.
D.C.
Baile!le Memorial Institute. HeadquliI'tered in
Columbus. Ohio
Brookhaven National Laboratory, Upton.
New York
Center for Energy and Environmental
Research lCEER). (University of Puerto
Rico)
Commonwealth of Puerto Rico. Charles Sta;k
Draper Laboratory, Incorporated
Cambridge. Massachusetts. Comparative
Animal Research Laboratory (CARL)
(university of Tennessee), Oakridge.
TenJ1e~6~e
i::1\'ironmental Institute of Mjcbigan. Ann
Arbor. Michigan
!-lar.ford Environmental Health Foundation.
Richland. Washington
L'T R~searchbslitute. Chicago. minois
ln~\itute for Defense AnnlY1iis. Arlington.
Vi16inia
bstilute of Gas Technology, Chicago. Illinois
Midwest Research lnstitute. Headquanered
in Kilnsas City, lvussouri
}..!ilre Corporation. Bedford. Massachusetts
Montana Energy Research and Development
Institute.lnc~ (MERDI). Butte. Montana
~ationaJ Radiological Astronomy
Observatory. Green Bank. West Virginia
Oakriage Associated Universities. Oak.idge,
Tennessee
Project Management Corporation. Oakridgc..
Tennessee
Raoa Corporation. Santa Monica. California
Research Triangle bslitute. Researc.h
Triangle Park. North Carolina
Riverside Research lrultitute. New York. New
York
Sandia Corporation. Albuquerque. New
\,Ir>Y:r:n
Southern Rellearch Institute. Birm.ingham.
Alabama
Southwest Research lnatitute... San Anton.lo..
Texas
SRI International Menlo Park. CallIomJa
Syracuse Reaearch Corporation. S)'TBCla8.
New Yorlc
Universities Research Association.
Incorporated [National Acceleration Lab),
Argonne. Dlinois
Univer-sitles Corporation for Atmospheric
Research. Boulder. Colorado
Nonprofit Insurance Companies roch as Blue
Cross and Blue Shield Organizations
Other nonprofit organizations as negotiated
with awarding ugencies.
[fR Ooc,eo-:lO:7O nlod '-7~ a:4S ''''1
~ CODE 311~1401
Editorial Corrections to
OMS A-122
OFFICE OF MANAGEMENT AND
BUDGET
Circular A-122, "Cost Principles for
Nonprofit Organizations"; Correction
AGENCY: Office of Management and
Budget.
ACTION: Final policy correction.
SUMMARY: This notice corrects errors in
the printing of cost principles for
nonprofit organiza lions, (45 FR 46022,
July 8. 1960).
FOR FURTHER INFORMATION CONTACT:
Palmer Marcantonio, Financial
Management Branch, Office of
Mlmagement and Budget. Washington.
D.C. 205D3. (202) 395-4773.
. Page 46022, column 2 the second
Paragraph 1, change Paragraph 5
"Compensation for Personnel Services"
to Paragraph 6.
. Page 46022. column 2 tbe second
Paragraph 2, change Paragraph 6
"Conti:l.gencies" to Paragraph 7.
. Page 46022, column 3:
Paragraph 4, change Paragraph 31,
"Equipment and Other Capital
Expenditures" to Paragraph 13.
. Paragraph 5, change Paragraph 26
"Meetings" to Paragraph 24..
. Paragraph 6, change Paragraph 27.
"Organization Costs" to Paragraph'26.
. Paragraph 7, change. Paragraph 30
"Page charges in Professtional Journals"
to Paragraph 28.
. Paragraph 8, change paragraph 37
"Public lnforma tion Service Costs" to
Paragraph 36.
. Paragraph 9. change Paragraph 43
"Rental Costs" to Paragraph 42.
. Paragraph 9a: in the fourth line. add
"up" between the words "only" and
"\0": in the sixth line change "they" to
"it".
. Paragraph 10, change Paragraph 51
"Tr:!\'r~1 rns!s" In P:lr:l('!';]!1h r,n.
-- --.1-
A-122:12
. Page 46024, column 3 Paragraph
4(a)[2) after "benefits received" add ":
or",
. Page 46025, column 1 Paragroph n3,
change the reference, "Paragraph 21 of
Attachment B" to "Paragraph 19 of
Allachment n."
. Page 46026, calumn 1 Paragraph
4a.iiL in the sixth line, change "direct
cost" to "direct costs:'
. Page 46026, column 2 Paragraph
Ele, change "e'stablishment of a rate" to
"establishment of a final rate:'
. Page 46026, column 3 Paragroph
E2b, in the third line add the following
afler "a Federalllgency shall"-"submit
its initial indirect cost proposal
immediately."
. Page 4(;(127, column 3 Parllgraph
'. (3)[ a). change "workmen's
compensation" to "workerF'
compensation."
. Page 46028, column 1 Paragraph
Of3(b). (the second line of colwnn 1)
chunge "Workmen's compensation" to
"workers' compensation."
. Page 4(j()30, -column 3, paragraph
24b., the sixth line. change "allowable"
to "allowability".
Doniel F. Monn,
Budget and Management Officer.
iFR Doc. I!1-'107J Flied J-llHll' /,:45 oml
BILLING COOE J'l~'-M
Circular A-122, "Cost Principles for
Nonprofit Organizations"
Carrectian
In FR Doc. 81-20270. appearing at
page 45022 in the issue of Tuesday, July
0, 1900, the following changes should be
made:
1. On page 46024. column three, tbe
second sentence in paragraph "'A.5.b.
should read. "Specificllllly, the concept
of netting such credit items against'
related expenditures should be applied
by the organiza tion in determining the
rates or amounts to be charged to
Federal awards Tor services rendered
whenever the facilities or other
resources used in providing such
services have been financed directly. in
whole or in part, by Federal funds:'
2. On page 45024, colwnn three, the
second complete sentence in paragraph
A.6. should read, "This is particularly
true in connection wi th organiza tions
that receive a preponderance of their
support from Federal agencies."
3. On page 46025, column one,
paragraph B.2. should read, "2. Any
direct cost of a minor amount may be
trea ted as an indirect cost for reasons of
practicality where the accounting
treatment for such cost is consistently
nrr!!..d tn 011 finlll Gosl nhier.tives."
':-11
.'
'1
~'
"
.
"
'Office'ot 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 insurance, annuity or
retirement plans, financial aid, etc."
5. On page 46025, column two, the fir~t
sentence in paragraph D.l.e. should
read, "The base period for the alloca tion
of indirect costs is the period in which
such costs are incurred and accl,lmula ted
for allocation to work performed in that
period."
O. On puge 46020, column one, the
second sentence in paragraph D.3.d
should read, "The cosls in the common
pool shall then be distributed to
individual awards included in that
function by use of a single indirect cost
ra te."
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 lotal direct costs
(excluding capital expenditures and
other distorting items such as major
subcontracts and subgrants), direct
:;aluries and wages, or o,ther base which
results in an equitable distribution."
8. On page 40020, 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 separa te their cos ts in to three
basic cate!!ories:. . ....
9. On page 46020. the last sentence in
column one (extending to column two).
in paragraph D.S. should read, "The
factors may include the physical
10ca tion of the work, the level of
administra tive support required. the
nature of the facilities or other resources
employed. the scientific disciplines or
technical skills involved, the
organizn liona] arrangements used, or
any combination thereof."
10. On page 46026. column three,
paragraph E.2.i. should read, "i. To the
extent that problems arc encountered
amol18 the Federal agencies in
connection with the negotia tion and
approval process, the Office of
Management and Budget will lend
assistance as required to resolve such
problems in a limely manner."
11. On page 46030, column one. the
introductory text of paragraph 16.0. and
parugraph 10.b.(l) should read. "b. The
cosls of idle facilities are unallowable
except to the extent that: (1) They lire
necessary to meet Ductua tions in
workloads: or".
12. On page 45030. 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 nol subject
to reduction or elimination by subletting,
renling, or sale, in accordance with
sound business. economics or security
practices."
13. On page 45031, second column.
paragraph 34.c. should read, "In addition
to the factors in paragraph b. above,
retainer fees to be allowable must be
supported by evidence of bona fide
services a vailable or rendered."
!J'LUNO COOE 150~1-M
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A-122:13
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