AGREEMENT FOR PUBLIC SERVICES FUNDED UNDER THE CLEARWATER COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM (2)
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AGREEMENT !DR PUBLIC SERVICES RJNDED
UNDER 'THE CLEARWATER mNUNln' DEVELOPMENT
BLOCK GRA."IT PROGRAM
PARI' I
This Agreement is entered into this
'YI> T/. day of ~W
19 80 , by the CITI OF CLEARWATER, FLORIDA, a political subdivision of the
State of Florida, hereinafter referred to as the "CITI", and
The Neighborly Center, Inc. hereinafter
referred to as the "PUBLIC SERVICE AGENCY (PSA) ," a nonprofit corporation
organized and existing mder the laws of Florida, having its principal office
at 440 Second Avenue, North, St. Petersburg, FL 33701
, and consists of
Part I and Appendices
\<JHEREAS, 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
moor Title I of the Housing and Conummity Development Act of 1974, as
amended, hereinafter called the "ACT"; and
'<JHEREAS, the Community Development Department, hereinafter called
the "DEPARINENT," ,...ill act in behalf of the City in conducting the program;
and
WHEREAS, the
~e Neighborly Center, Inc.
proposes to
Operate an energy conservation program for the elderly
hereinafter referred to as the "PROJECT," and desires federal financial
assistance through the City to effect this proposal; and
1'l1-IEREAS, the City finds that the PROJECT proposed by
The Neighborly Center, Inc.
is meritorious and
fulfills the purpose and policies of the ACf:
THEREFORE, the parties agree as follows:
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1. Services Perfonned:The PSA shall, in a satisfactory and
proper manner as detennined by the DEPARTI-1ENT, conduct the PROJEcr
outlined in the attached Narrative and Budget as Appendix A and identified
as follows:
Energy Conservation Project
(Name of ProJect)
Al-A3
(Page Numbers - NarratIve)
Not to exceed $17,575.00
(Total Cost)
A4
(Page ~i.nnbers - Budget)
2. Tenn and Clarification of Agreement: The PSA shall perfonn
the services outlined in the Narrative during the tenn of this AGREEMENf,
corrmencing on
November 15, 1980
and terminating on September 30, 198,1
unless this AGREEMENT is otherwise earlier cancelled as hereinafter provided,
or tmless extended by written addendum to this AGREEMENT. The DEPARTMENf
may issue written or oral instructions to clarify any details or provisions
of this AGREEMENT. Such instructions must be wi thin the intent of the work
set forth in this PGREfMENT and may not be of such nature to affect cost or
period of performance.
3. Agreement Administration: The City representative with the
PSA as regards to the coriduct of services under this contract is
Joseph R. McFate, Community Development Coordinator
or his designee. The
PSA's services shall be carried out tmder the supervision of
Fredric Buchholtz, Executive Director
4. Use of Ftmds:
(a) The PSA shall use the ftmds to support the PROJEcr serving
residents of the City, particularly in Neighborhood Target Areas
as defined in Appendix B.
(b) The PSA shall not exceed its budgeted amount and shall use the
funds in accordance with the Budget-Expenses to be paid by
Communi ty Development funds included in Appendix A of this
AGREFJ.fENf .
(c) The PSA shall only obligate PROJECf foods for costs incurred for
the delivery of services specified in Appendix A and subject to the
provisions of Paragraph 18 of this AGREB.fENf.
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8. l-fethod of Payment:
(a) The City agrees to make payment on budgeted costs allowable as
stated in Appendix A under Budget - Expenses to be paid by
Corrommity Development Ftmds under Federal/HUD, State, and City
guidelines on a reimbursement basis.
(b) The PSA shall make requests for payment as directed by the
DEPARTMENT as detailed in Appendix D.
(c) No advance payments shall be made to PSA for services rendered.
(d) Within 20 days after receipt of each invoice and other
supporting documentation, the City shall make payment thereon.
(e) All costs, and invoices for requests 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 be
clearly identified and readily accessible.
(f) ltiithin thirty (30) days after completion of all services to be
perfonned by it, PSA shall render a final and complete statement to
the City of all charges for eligible costs not previously invoiced.
The City shall not be responsible for payment of any charges, claims
or demands of PSA not received within said thirty (30) day period;
however, such time may be extended in the City's discretion not to
exceed a period of ninety (90) days, provided the delay in its
submission is not occasioned by any fault or negligence of PSA.
9. Property Management:
(a) The City shall retain Olstody upon tennination of this AGREBIENT
of any and all property purchased with Comrrnmity Development ftmds.
"Property" as used in this paragraph shall mean nonexpendable,
tangible property valued at $50.00 or more with a life expectancy of
one year or more.
(b) The PSA shall retain custody of property acquired with federal
ftmds so long as the property is used for the purposes described in
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Project Narrative, Appendix A of this AGREEMENT.
When the property no longer is used for the purposes ,so stated, the
City shall assume custody of the property upon written notice to
the PSA.
(c) Upon purchase and receipt of any property, the PSA shall submit
to the DEPARTMENT a Property Receiving Report.
(d) The PSA shall submit a report to the DEPARfMENT if property is
returned to the vendor. The report shall list the items returned,
description, serial ntDTIber, and quantity.
(e) The PSA shall report lost or stolen property immediately to
the DEPARTMENT. Stolen property must also be reported to the local
law enforcement agency and a police report shall be fon...arded to
the DEPARTNENT.
. (f) Thirty (30) days prior to the end of the grant year, or
irnmediately upon tennination of this AGREEMENT by either party,
the PSA shall submit in a Property Report a physical inventory of
all property purchased with Corrmuni ty Development ftmds. The
report shall also contain a verification of the existence and current
use of the property and, if applicable, the continued need for the
property .
(g) No real or personal property or custody thereof purchased
wi th Conmnmi ty Development ftmds shall be disposed of, transferred,
assigned, loaned by PSA without prior written consent of the City.
10. Fnnding Confidential: Nothing in this AGREEMENT shall be
construed to penni t invasion of the privacy of individuals who are served by
the PROJECf, nor shall this AGREE\1ENT 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 DEPAR1NENT as required by
this AGREEMENT shall not be used or disclosed in such a ''lay as to invade
individual privacy and client relationships, lIDless Florida law pertaining to
public records requires disclosure of said information.
11. Subsequent Changes: The PSA shall obtain approval by written
addendtDTI to t~is A~1ENT prior to any of the following changes:
(a) Substantial changes in the PROJECf work plan
(b) Changes desired in any budget line item
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12. Evaluation:
(a) The PSA hereby agrees to participate fully with the guidance
and assistance of the DEPAR1NE'IT in the implementation and .
maintenance of an evaluation system whereby the PROJECT may be
continually monitored. Full participation in an evaluation system
shall include, but not be limited to, periodic submission of client
data reports which will be used by the DEPAR1}~~ for inclusion in
the Annual Grantee Perfonnance Report, annual monitoring visits by
the DEPAR1NENT for confonnance with this AGREEMEN1~ incorporated
standards and requirements, and a detennination whether PSA has a
continuing capacity to carry out block grant assisted activities in
a timely manner. The DEPARTIvIENT agrees to share with PSA such data
and reports derived therefrom. The PSA agrees to comply with
evaluation and infonnation reqUlirements issued by the DEPARDIENT.
(b) The PSA shall submit a quarterly program activity report
outlining activities undertaken with grant funds and including
client data on individuals served within the designated service area
as stipulated in this AGREEMENT.
(c) The PSA shall submit a final report \vithin thirty (30) days
after the end of the contract period. The final report requires a
summary discussion regarding PROJECT effectiveness and should
include but is not limited to service delivery problems encountered,
and recommendations. This final report shall consolidate reporting
of all PROJECf participants.
13. Accm.mting System: The PSA shall establish and maintain on an
accrual basis an accounting system in accordance with Federal ~fumagement
Circular (FMC) A-l02 Standards of Grantee Financial ~fanagement Systems, as
set forth in Appendix C of this AGRE~ffiNT, and in accordance with generally
accepted accormting principles and standards. Prior to disbursement of
ftmds pursuant to this AGREE-tENT, PSA and City shall review PSA' s internal
control, accounting, and report systems. PSA agrees to modify or correct
said systems in accordance with the City's requirements subsequent to said
review to accomplish the purpose of this section.
14. Maintenance of Records:
(a) PSA shall maintain such records and aCC01.mts including property,
personnel and financial records as are deemed necessary by the City to
assure a proper accmmting for all PROJECT funds.
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These records will be made 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
necessary. There shall be made available to the City, HUD,
representatives of the Comptroller General of the United States or
other federal agency, for examination, all of these records with
respect to all matters covered by this AGREEMENT; and PSA will pennit
same to be examined and excerpts or transcriptions made or
duplicated from such records, and audits made of all contracts,
invoices, materials, records of personnel, and of employment and
other data relating to all matters covered by this AGREU1ENT. The
City's right of inspection and audit shall pertain likewise with
reference to any audits made by any other agency, whether local,
state or federal. PSA likewise shall retain all records and
supporting documentation applicable to this AGRfe.1ENI' for such period
as required by applicable laws and regulations and may thereafter be
destroyed only with the prior written approval of the City. All
records shall be available for inspection as aforesaid, for compliance
wi th appl icable laws and regulations.
(b) The PSA agrees to retain all records pertaining to the PROJEcr
for such period as required by applicable laws and regulations and
may thereafter be destroyed only with the prior written approval of
the City, as related to this AGREEMENT or extension of the AGREBvIENT.
Such records shall include financial records, audits, supporting
documents, statistical reports and client files.
(c) PSA agrees to comply with such additional requirements as to
maintenance of records as the City may request in writing. In the
event that 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
AGRE:B1ENT .
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15. Hold Hannless: The PSA shall hold and save the City, its
officers, agents and employees hannless from liability of any nature or
kind, including costs and expenses, for or on accotmt 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.
16. Assignability: The PSA shall not assign any interest in this
AGREEMENT without the prior written consent of the City.
17. Suspension or Tennination: The City may suspend, withhold,
or tenninate payment of the PROJECf in whole or in part for cause. Cause
shall include the following:
(a) Ineffective or improper use of PROJECf ftmds.
. (b) Failure to comply with either the tenns and conditions of
this AGREB1ENI' or the PROJECf set forth in Appendix A of this
AGREEMENT
(c) Refusal to accept conditions imposed by I-nJD
(d) Submittal to the DEP.ARfM8\lT of reports which are incorrect or
incomplete in any material respect
(e) If the carrying out of this AGREFNENT is rendered impossible or
infeasible for any reason including changes in federal law or the
tmavailability of Col1ll1Ullity ~velopment Block Grant ftmds from HUD
\ihich are necessary for continuation of the program.
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 payments and specify a reasonable date for compliance.
18. ~1i very of Services:
(a) The PSAand the City hereby agree to use their best efforts to
ensure that the services tmder this AGREH.1ENT are provided at such
times and in such places as will best meet the needs of City
residents with priority to those residents \iho reside in the target
area(s) set forth by Appendix B of this AGREEM8IT.
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(b) The PSA shall make every effort to assure that a minimum of
two-thirds of those persons receiving the public service tmder
this AGREEMENT are low- and moderate-income.
19. Discrimination Prohibition: No person \Yith responsibilities
in the operation of the PROJECT \Yill 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 or activity funded in
whole or in part with Community Development funds because of race, color,
national origin or sex, as set forth in Appendix G, Other Program
Requirements. (CFR 570.601).
20. Assurances:
(a) The PSA \~ll 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.
(b) Prior to requesting any continued PROJECT funding beyond the
tenn covered by this AGREB1ENI' or for new public services not
covered by this AGREE-tENT, the PSA shall provide evidence of having
applied or inquired in writing to other local, state and federal
agencies which conduct a program or programs most likely to meet the
needs for which Conmnmity Development funds are being considered.
(c) The PSA will not as a result of receiving funding for the
PROJECT reduce its support for other similar services already being
provided by PSA in the identified target area or in other areas,
and will, in fact, affirmatively seek additional assistance and
support from other sources for increasing services where needs demand
'. such increase.
(d) The PSA shall not use Block Grant ftmds for publicity or
propaganda purposes designed to support or defeat legislation
pending before federal, state, or local governments.
21. EmPloyment Opportunities for Businesses and Lower Income Persons:
The PSA shall comply with the requirements of Section 3 of the Housing and
Urban Development Act of 1968 (12 USC 1701u) in b1e provision of training,
employment and business opporttmities, as amended, and the HUD regulations
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issued pursuant thereto at 24 CFR Part 135, attached hereto as Appendix E.
22. Equal Employment = The PSA will comply with Equal Employment
Opportunities Exeuctive Order 11246, as amended, attached hereto as
Appendix F.
23. Compliance With Other Federal Regulations = The PSA shall comply
wi th applicable federal la\i and regulations, including but not limited to;
National Environmental Policy Act of 1969;
Flood Disaster Protection Act of 1973 (PL 93-234) ;
HUD Lead-Based Paint Poisoning Prevention Act, 24 CFR Part 34;
Clean Air Act, as amended, 42 use 1857, et seq.;
Historic Preservation Requirements of Public Law 89-656;
Archeological and Historic Preservation Act of 1974;
Executive Order 11593;
Architectural Barriers Act of 1968;
Hatch Act;
Federal Water Pollution Control Act, as amended, 33 USC 1251, et seq. ;
Federal Labor Standards Provision and the Davis - Bacon Act;
The Civil Rights Act of 1964;
National Flood Insurance Program.
24. Titles and Headings: Titles and headings are utilized for
convenience of reference only and shall not affect the provisions of the
AGREEMENT or interpretation thereof.
IN WI1NESS WHEREOF, the parties hereto have caused this AGREEMENT,
Part I and Appendices, to be exeucted on the day and year first above ,Written.
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THE NEIGHBORLY CENTER, DfCo-"'"
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Witnesses as to PSA:
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Energy Conservation Proposal
Installation of Super Insulating
Hot Water Heater Jackets
Submitted to:
The City of Clearwater
Community Development Department
10 South Missouri Avenue
Clearwater, Florida 33515
Submitted by:
The Neighborly Center, Inc.
440 Second Avenue, North
St. Petersburg, Florida 33701
821-1771
Fredric Buchholtz, Executive Director
October 24, 1980
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TABLE OF CONTENTS
II.
Introduction. . .. . . . .. . .. .. . ... . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . .
I.
Program Description.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -e . . . .
A.
Goa 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B.
Objective.. .
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C.
Methodology.
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IV.
Appendix.
Budget Narrative.
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III.
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A.
Application Form......... . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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I. Introduction
The Neighborly Center, Inc. is requesLing $17 ,575.00 in order to imp lement an
energy conservation program which will realize significant savings for low in-
come elderly residents of the City of Clearwater through the installation of
hot water heater insulating jackets. The proposed program will be completed
within a sixteen (16) week period with a starting date of November 24, 1980
and a projected completion date of March 13, 1981. The main objective of this
service project is to install 1,000 hot water heater insulating jackets for
elderly residents of Clearwater, who will directly benefit from the proposed
conservation measure through lower monthly electric bills.
II. Program Description
A. Goal
The goal 0 f this energy conservation proposal is to provide low income
elderly residents of the City of Clearwater with the free installation of
super insulating hot water heater jackets which have been endorsed by the
Florida Power Corporation as effective energy conservation devices. It is es-
timated that the cost of each hot water heater insulating jacket will be
realized within a twelve (12) month period through reduced monthly electric
bills. (The achievement of the break-even point will, obviously, be dependent
on variables such as the utilization of water supply, environmental conditions
affecting the location of the water heater and the size of the heater.) The
usage of the super insulating hot water heater jackets will conserve and sig-
nificantly reduce monthly electric bills for the low income elderly who are
most drast~cally affected by the inflationary costs of energy.
B . 0 b j e c t i ve
1. To install super insulating hot water heating jackets for 1,000 low
income elderly (60 years of age or older) residents of the City of Clear-
water who are responsible for paying their own electric bills.
The following action steps will be implemented in order to achieve the
above-stated objective:
ACTION STEP
DATE OF COMPLETION
1.
Designate an Energy Coordinator within
The Neighborly Center, Inc. staff.
January 12, 1981
2.
Publicize the energy conservation program
through local newspapers, radio spots, and
through announcements at all NCI locations
in Clearwater.
January 23, 1981
3.
Solicit bids on 1,000 super insulating hot
water heater jackets from at least three
business firms.
January 16, 1981
4. All Site/Program Managers in Clearwater February 13, 1981
will distribute, collect and forward
applications for the energy conservation
program to the designated NCI Energy Coordinator.
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Hire and train two full-time energy workers
to install the hot water heater insulating
jackets.
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January 30, 1981
January 30, 1981
January 30, 1981
and ongoing
February 2, 1981
February 2, 1981
February 6, 1981
April 24, 1981
As required
Upon notification' of the grant award, The Neighborly Center, Inc. will
designate a Special Project Energy Coordinator who will be responsible to
oversee the implementation of the proposed project. The availability of this
energy conservation service program will be publicized in local newspapers,
radio stations and through other appropriate means with a special effort to
reach the elderly with the greatest economic need.
6.
Purchase and store 1,000 hot water heater
.jackets.
Applications for participation 1n this program will be available at all six
Neighborly Center locations at the following addresses within the city limits
of Clearwater:
7.
Screen all applicants based on eligibility
criteria and set up appointments for
installation.
8.
Prepare daily schedule of installation
appointments for the energy worker.
9.
Energy workers pick up schedule and appro-
priate number of hot water heater jakets
and install jackets as scheduled.
10.
Record the date of the completed installa-
tion on the participant's application.
11.
Make a follow-up telephone call to 5% of
the participants to insure proper instal-
lation.
12.
Complete and forward all records and reports
to the City of Clearwater Community Develop-
ment D~partment as required.
C. Methodology
1. Jewish Community Center, 302 S. Jupiter Avenue, Clearwater,
Florida 33516
2. Highpoint United Methodist Church, 15701 6lst Street, North, Clear-
water, Florida 33520
3. Mount Carmel Baptist Church, 1014 Pennsylvania, Clearwater, Florida
33515
4. St. Paul's Lutheran Church, 407 South Saturn, Clearwater, Florida
33517
5. Channel Markers for the Blind, 1610 N. Myrtle Avenue, Clearwater,
Florida 33515
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I. Introduction
The Neighborly Center, Inc. is requesting $17,575.00 in order to implement an
energy conservation program which will realize significant savings for low in-
come elderly residents of the City of Clearwater through the installation of
hot water heater insulating jackets. The proposed program will be completed
within a sixteen (16) week period with a starting date of November 24, 1980
and a projected completion date of March 13, 1981. The main objective of this
service project is to install 1,000 hot water heater insulating jackets for
elderly residents of Clearwater, who will directly benefit from the proposed
conservation measure through lower monthly electric bills.
II. Program Description
A. Goal
The goal of this energy conservation proposal is to provide low income
elderly residents of the City of Clearwater with the free installation of
super insulating hot water heater jackets which have been endorsed by the
Florida Power Corporation as effective energy conservation devices. It is es-
timated that the cost of each hot water heater insulating jacket will be
realized within a twelve (12) month period through reduced monthly electric
bills. (The achievement of the break-even point will, obviously, be dependent
on variables such as the utilization of water supply, environmental conditions
affecting the location of the water heater and the size of the heater.) The
usage of the super insulating hot water heater jackets wi 11 conserve and sig-
nificantly reduce monthly electric bills for the low income elderly who are
most drastically affected by the inflationary costs of energy.
B. Objective
1. To install super insulating hot water heating jackets for 1,000 low
income elderly (60 years of age or older) residents of the City of Clear-
water who are responsible for paying their own electric bills.
The following action steps will be implemented in order to achieve the
above-stated objective:
ACTION STEP
DATE OF COMPLETION
1.
Designate an Energy Coordinator within
The Neighborly, Center, Inc. staff.
November 24, 1980
2.
Publicize the energy conservation program
through local newspapers, radio spots, and
through announcements at all NCI locations
in Clearwater.
December 5, 1980
3.
Solicit bids on 1,000 super insulating hot
water heater jackets from at least three
business firms.
November 28, 1980
4. All Site/Program Managers in Clearwater December 26, 1980
will distribute, collect and forward
applications for the energy conservation
program to the designated NCI Energy Coordinator.
I
5. Hire and train two full-time energy workers
to install the hot water heater insulating
jackets.
6. Purchase and store 1,000 hot water heater
jackets.
7. Screen all applicants based on eligibility
criteria and set up appointments for
installation.
8. Prepare daily schedule of installation
appointments for the energy worker.
9. Energy workers pick up schedule and appro-
priate number of hot water heater jakets
and install jackets as scheduled.
10. Record the date of the completed installa-
tion on the participant's application.
11. Make a follow-up telephone call to 5% of
the participants to insure proper instal-
lation.
12. Complete and forward all records and reports
to the City of Clearwater Community Develop-
ment Department as required.
C. Methodology
I
December 12, 1980
December 12, 1980
December 12, 1980
and ongoing
December 15, 1980
and ongoing
December 15, 1980
and ongoing
December 19, 1980
and ongoing
March 6, 1981
As required
Upon notification of the grant award, The Neighborly Center, Inc. will
designate a Special Project Energy Coordinator who will be responsible to
oversee the implementation of the proposed project. The availability of this
energy conservation service program will be publicized in local newspapers,
radio stations and through other appropriate means with a special effort to
reach the elderly with the greatest economic need.
Applications for participation in this program will be available at all six
Neighborly Center locations at the following addresses within the city limits
of Clearwater:
1. Jewish Community Center, 302 S. Jupiter Avenue, Clearwater,
Florida 33516
2. Highpoint United Methodist Church, 15701 6lst Street, North, Clear-
water, Florida 33520
3. Mount Carmel Baptist Church, 1014 Pennsylvania, Clearwater, Florida
33515
4. St. Paul's Lutheran Church, 407 South Saturn, Clearwater, Florida
33517
5. Channel Markers for the Blind, 1610 N. Myrtle Avenue, Clearwater,
Florida 33515
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6. Clearwater Adult Day Care Center, St. John's Episcopal Church, 1676
South Belcher Road, Clearwater, Floida 33516
Although all Clearwater residents 60 years of age or older will be welcome to
complete an application, the following criteria will be used to determine the
eligibility of each applicant:
1. Resident of the City of Clearwater (and).
2. Sixty (60) years of age or older (and).
3. Household income at or below limits set by the City of Clearwater
Community Development Department (see attached application form,
Appendix A) (and).
4. Applicant directly responsible for paying monthly electric bills.
5. Applicant must have an electric hot water heater that is not marked
"super insulated". (These more recent models are constructed with
double insulation and will not be significantly affected by an ad-
ditional hot water heater insulating jacket.)
The Energy Coordinator will hire two full-time minimum wage energy workers on
a temporary basis (14 weeks of employment). The energy workers will be ori-
ented to The Neighborly Center, Inc. and the proposed project. A representa-
tive from the Florida Power Corporation will train the energy workers how to
properly install the hot water heater insulating jackets and also how to check
and readjust the hot water heater temperatures. The energy workers will sug-
gest an appropriate water temperature to each participant and readjust the
thermostat as requested. (This readjustment of the thermostat will in and of
itself conserve energy in many homes where the thermostat is needlessly set at
an extremely high temperature.)
The Energy Coordinator will solicit bids on 1,000 super insulating hot water
heater jackets from local businesses. Upon purchasing the insulating jackets,
arrangements will be made with the City of Clearwater for proper and conve-
nient storage. The energy workers will have access to the supply of insulat-
ing jackets on a daily basis.
The Energy Coordinator will screen all applications for eligibility require-
ments and will then coordinate appointments with the participants for instal-
lation. Each energy worker will be given a daily schedule of appointments for
installations every morning. It is estimated that each energy worker will
install an average of eight (8) hot water insulating jackets on a daily
basis. The Neighborly Center, Inc. Coordinated Transportation for the Elderly
Project will provide each energy worker with the use of a van. (The Neigh-
borly Center, Inc. Coordinated Transportation for the Elderly Project has a
limited number of older vehicles which will be available for this project.)
The energy workers will check off the appointments as they complete each job
(or make appropriate notes as to why the job was not completed) and turn the
schedule in to the Energy Coordinator on a daily basis.
The Energy Coordinator and/or volunteers will contact 5% of the, participants
by telephone in order to insure proper installation and participant satisfac-
tion with the service project.
-3-
c'
I
I
III. Budget Narrative
A. Personnel
1. Energy Coordinator (20 hours per pay period)
68.40/pp x 8 pp (3.42/hr. from 11/24/80 to
3/13/80)
2.
Energy Conservation Worker (2-temporary,
$248.00/pp x 1.75 pp x 2 workers
(3.10/hr. from 12/08/80 to 12/31/80)
$268.00/pp x 5.25 pp x 2 workers
(3.35/hr. from 1/1/81 to 3/13/81)
547.20
full-time)
$ 868.00
3.
Fringe Benefits
a. FICA
1,060 x .0613
3,169 x .0665
b. Workman I s Comp.
.06 x 4,229
c . Unemp. Comp.
.019 x 4,229
TOTAL PERSONNEL
B.
Supplies
1. 1,000 super insulating hot water
heater jackets @ 10.95
2. Fuel - 2 vehicles
30 miles per day x 63 days - 7 mpg x 1.30/gal.
I
3. Vehicle insurance-30 miles per day x 63 days
x 6.57 per 100 miles
TOTAL SUPPLIES
Total Direct Cost
C.
Indirect Cost
.0806' x 16,264
TOTAL COSTS
-4-
2,814.00
64.98
210.74
253.74
80.35
$ 4,229.00
$ 610.00
$ 4,839.00
$10,950.00
351.00
124.00
$11 ,425 .00
$16,264.00
$ 1,311.00
$ 17,575.00
.'
. .
I
Appendix A
Application Form
I
. .
.. "'ot
I
I
THE NEIGHBORLY CENTER, INC.
APPLICATION FOR THE INSTALLATION OF A
HOT WATER HEATER INSULATING JACKET
This program is being funded with Community Development Block Grant Funds (HUD)
through the City of Clearwater Community Development Department. In order to par-
ticipate in this program, you must be a resident of the City of Clearwater, sixty
(60) years of age or older, at or below the income guidelines as described below,
directly responsible for paying for your own monthly electricity bill and have an
electric hot water heater that is not "super insulated". If you meet ALL of the
above criteria, please complete this-form and return it to The Neighborly Center,
Inc. Site Manager as soon as possible.
NAME :
ADDRESS:
TELEPHONE:
DATE OF BIRTH:
AGE:
ARE YOU THE HEAD OF YOUR HOUSEHOLD? YES
NO
IF NOT, PLEASE NAME YOUR HEAD OF HOUSEHOLD:
ANNUAL INCOME
PLEASE CHECK THE CATEGORY WHICH YOU FALL INTO BASED ON THE ANNUAL INCOME OF YOUR
HOUSEHOLD (COMBINE ALL INCOME OF HOUSEHOLD MEMBERS):
FAMILY SIZE
ANNUAL INCOME LEVEL
PLEASE
CHE CK ONE
1 person
$5,500 OR LOWER
$5,501 - $8,800
$8,801 AND HIGHER (ineligible)
2 persons
$6,250 OR LOWER
$6,251 - $10,000
$10,001 AND HIGHER (ineligible)
3 persons
$7,375 OR LOWER
$7,376 - $11,300
$11,301 AND HIGHER (ineligible)
IF MORE THAN 3 PERSONS ARE IN YOUR HOUSEHOLD, PLEASE INDICATE THE NUMBER OF PERSONS
AND THE ANNUAL INCOME OF YOUR HOUSEHOLD BELOW:
NUMBER OF PERSONS:
ANNUAL HOUSEHOLD INCOME:
ARE YOU RESPONSIBLE FOR PAYING AN ELECTRICITY BILL EVERY MONTH? YES NO
IS YOUR HOT WATER HEATER MARKED "SUPER DOUBLE INSULATION"? YES NO
I, THE UNDERSIGNED, HEREBY SUBMIT THIS APPLICATION AND GIVE THE NEIGHBORLY CENTER,
INC. PERMISSION TO FORWARD THE ABOVE INFORMATION TO THE CITY OF CLEARWATER COM-
MUNITY DEVELOPMENT DEPARTMENT WITH THE UNDERSTANDING THAT IT WILL BE HELD IN STRICT
CONFIDENCE.
APPLICANT I S SIGNATURE
DATE
-5-
\;
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I
I
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CLEARWATER, FLORIDA
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( I)
(2)
(3)
( 4)
North Greenv~od NTA
South Greenwood NTA
East Clearwater NTA
L3nd Acquisition
~~~~~-:.'~~~-
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~
I
COMMUNITY DEVELOPMENT BLOCK GRANTS
I
OFFICE OF MANAGEMENT AND
BUDGET
(ClrcuI&r No. A-103 ReVIsed ]
UNIFORM ADMINISTRATIVE REQUIRE.
MENTS FOR GRANTS-IN.AID TO STATE
AND. LOCAL GOVERNMENTS
AOGUST 24. 1977.
1. Purpose. This Circula.r promulga.tes
sta.nds.rds for establishing conslsten:y
and uniformity among Federal agencies
In the admlnlstratlori of grants to Sta.te.
local, 'and federally recognized Indian
tr1bal governments. Also included in the
Circular are stlUldards to insure the con-
sistent implementation of sections 202.
203. and 204 of the In~vemen'taJ. C0-
operation Act of 1968 (82 Stat. HOl>.
2. Supersession. The President by Ex-
ecUtive Order 11717 transferred the !unc--
tlons covered by OMB C'.rcular No. A-102
dated October 19, 1971, from the Omce
o! Management and Budget to the Gen-
eral Services Administration. OMB C'1r-
cular No. A-102 wa.s revised and Issl1ed u
Federal Ma.na.gement CIrcular 74-7 dated
September 13, 1974. On December 31.
1975. the President superseded this order
by Exe;u t1ve Order 11833 a.nd trans! erred
the !unctlons covered by this C'1rcular
ba.ckto the omce of Management and
Budget. FMC 74-7 Is revised a.nd reissued
under Its o!1g1na.l des1gml.tion of OMB
C'1rcula.r No. A-102.
3. Summary 01 significant ch.an.ges.
The revised Clrcula.r contains ch3.nges
that bring It Into general agreement with
the more recent C'1rcula.r A-HO which
coven grants to univers1ties, hospitals.
and nonprofit Organ1za.tiODS. .
The more s~ificant changes Include:
(a) An amendment to the basic C'1r-
cular to make Ifclea.r tha.t tne provisions
of the a.ttachments shall be a.pplied to
subgrantees e.'tcept where they a.re spe-
cifically excluded.
(b) A prov1sion tha.t Federal agencies
may acce;7t the bonding policies and re-
quirements oC the gra.:ltee tor construc-
tion contracts over $100.000 provided
tha.t the Go\'ernment.s Interest Is ade-
qua.tely prot€cted.
(c) A revision to the criterion for the
valuation of donated resJ. and personal
property to proYide that the Y'a.lue of
such ;n'operty shall be based on fair
market \'alue. The original C1rcul.a.r pro-
\1c!ed that ;>roperty should be based on
the cost o! the property less depre:la-
tion or fal:' market\"'a.lue, wh.1C.'leyer was
less.
(d) A prov1sion t..'ul.t grantee a.udits
should be m:l.de In accord&nce with gen-
erally acce p te<1 a. tidi ting s tar.c! arcls.
lnc!udi.'1g Standards for Audit o!
Government.:l.l Or;;::llI'.i=atlons. Proi'arns.
Act.ivlties and runctions. published by
the Ge..'1eral Accounting Omce.
(e) A provision to requi:-e Feder:tl
:J.se-nc:es to pay wi:!-.in 30 da.,'s 3.f~r the
re-::ei;;t of bS:"'"16 when the !'ei=1burse-
::-:ent :r.ethod Is '.:sed.
(n A fe--,"i"!OC to the cr:t.::-:on for :s-
sua.'1ce of a le:ter of c:-eC.it f!'om 5:50.000
to n:o,QOo.
(gl Delet!on of :..~e ;-eq'JJ:e::;ents for
~~--: t.ees ~o ~):~t:..m prior ~~p:o\'2.ls for
OMB CIRCULAR A-102
budget revisions to grants under $100.-
000. .
(h) Provision tha.t title to real prop-
erty funded partly or wholly by the Fed-
eral Government sha.ll vest in the recip-
ient.
(\) A revision to the criteria governing
when a grantee may keep nonexpendable
property without reimbunement to the
Federal Government when It Is no longer
needed tor any Federal program.
4. Background.. The standards in-
cludedln the attachments to this Cir-
cula.r replace the multitude of van'ing
and oftentimes conflicting requirements
in the same subject matter ,;..h.1ch have
been burdensome to the state and local
governments. Inherent in this stand-
ardization process is the concept oC plac-
Ing greater reliance on State and local
governments. In addition, the Intergov-
ernmental Cooperation Act of 1968 was
pa.ssed. in part. for the purposes oC: (a.)
Achieving the fullest cooperatlon and
coordina.tlon of activities among levels of
government: (b) improving the admin-
istration of grants-in-aid to the States;
and (c) establishing coordinated inter-
governmental pollcy and administration
o! Federal a.ssistance program. This Act
provided certain basic pOlicies pertaining
to administrative requirements to be im-
posed upon the states as a condition to
receiving Federal grants. The imple-
m.eI).tlng Instructions of these policies
Vo'ere 1n1tia.lly Issued In Circular A-96.
These instructions are modified herein In
the Interest of a.chieving further con-
sistency In Implementing that Act.
5. Applicable provisions 01 th.e Inter-
g01lernmental Cooperation Act of 1968.
Federal agencies shall continue to fol-
low the provisiOns ot the Act. quoted
below:
DEPosrr or CiIl.o\NTS-Ql'-Am
Sec. 20:1. No gra.nt.-In-&1d to & St&U shaU
bit reqUIred by Feder&l l&w or &dtl".1l1istra-
tlve regul&t1on to be depC6lted In & separate
bank s.ccount &pe.rt trom otber funds a.dmln-
lstered by the State. All Federa.1 gra..'lt-ln.
&Icl funds made &v&U&ble to the St&t.es sh&ll
bit properly a.c:counucl tor &S Federal funds
1D. the a.ccounts at the St&te. In <!Seh ca.se
the St&te a.geacy concerned shall render reg-
Ular authentlc&ted reports to the approprt-
&te Feder&1 agency covering the status and
tbe &ppllcatlon ot the funds, the ll&bllltlel!l
&nd obllg&t1ons on h=d. and such other
fa.ct.s &S m&y be requl:"ed by s&ld Feder&1
agency, The bead at tbe Federa.1 &gency &nd
the Comptroller Cienera.1 at the C~:.oo St&tes
or &ny ot theIr duly &utharlzed repr'!sent-
&tlves sb&11 h&ve a.c:cess tor tbe purpose at
&udlt and ex&m1tl&tlon to &r.y books, docu-
ments, p&pers. &od records th&t &re pertl-
::lent to tbe gr-&nt.In-&1d received ,::>y the
St&tes.
ScKEDut-I:<G OF FEDDAI. TllANsnRs TO =z:
Suns
Sec. 203. Reeds ot Federal departments &:ld
lLie.:lc1es :t'Spo:slb1e ro~ sd:nlr.!s~~r:.g ~::t-
t~.a.1d progracs shaH schecL.lle t~e ::-ar...ster
ot cr..nt.~.ald funds coc.slstent ....lth pro.
...un pur~s &:'lcl sp?llc3.'::>le 'T':"es.surj' r~g-
''':':3~~O~. ~ &.5 ~ m1~:::l1::e -:~e ~~=:e e::lj:~~~g
':Je:-.e!:J. :'b.e ~~~t'er ot 5t.:C~ :"...::l~S ~:om
~~e 'C::!~d S~~s ~e:l.C;ury ?~d :'~.e c~s::,urse"
:::ent ~~(';eo:- ':J-: s. S:a.:..e. ...:..~':.~.er s"...:c~ d:.s-
b'..l:se::le:1:' occu.rs ;:~O:" to or st:~seq'..:e::.: :0
S''';:~ ~:"3.~:e:' o~ ~~:-.ds. 0:' s':..;~I?~:...:.e:-:: ~c ~''':C~
:l)1'~64JI)Ix.. /, C. '/
09: 1541
HDR RF-136
4-23-79
tnnster at tun~. (Sic) St&US ebL: ::lot ~
held account&ble .tor Inter~st ec.:::ed on
gr&nt-In-&Id tun~i pendIng their C:",::>ur.;e.
ment tor prognm purposes.
ELICTllI.E SrAn: ."C=CT
See. 204. Notwlthst&ndlng &ny o~.r Fed-
eral I&W which provIdes that a su..:e St3.te
a.gency or multImember board or co=lsslon
must be est&hllshed or deslgn&ted t<, a.dClln.
Ister 01' supervIse the &dmlnlstr&tla-::: or &ny
gnnt-In-&ld program. the head at o.:lY Fed.
eral dep&rtment or agency &dml.::!ster1D.g
such program I]1&Y, upon request 0: :~e Gov.
ernor or other approprla.te execut1-:e or leg-
Islative &ut..'1orlty ot the St&U re;:=<>:::slble
tor determinIng or revIsing the c:..-nlza.
tlon&l structure oCSt&te go,;ernme::~, 7;'s!,;e
the sIngle St&te agency or mul::'='om'::>er
bo&rd or commissIon provIsIon u;:-;:,n ade-
qU&te shaw10g that such provIsion ;:r-events
the est&bllshme:'lt ot the most etl'ec::.e snd
emclent or-ganlz.a.tlon&l a.rrB.ngcments wlthUl
the St&te government snd &pprc.e other
st&ee a.dmlnLstrl!.tlve struc~ure or >.:-range-
ment.s: Provided, That the head or ~e Fed-
ers.1 dep&rtment or agency determl.::es t..'1&t
the objectives at the Feder&1 statut.. ~...thor'
Izlng tbe gr&nt.ln-&ld prognm wtll not be
end&ng!!red by the use at sucb o~~. St&u
structure or &rrsngements.
Some of the above provisions :equlre
implementing instructions andl'1ey are
prOvided In several of the atts.::':.'nents
to this CIrcular which deal v.ith :":le spe-
cific subject matter.
6. APPlicability and. scope. The stand-
arcis promulgated by this C1Icul.;.r apply
to all Federal agencies respon.s:;,!e for
administering programs that :"'1volve
grants to State and local goye;-::.:nents
and Cederally recognized Ind~ tnbal
governmomts. Howe\'er, agencies are e.'1-
couraged to apply the standarc!.s to loan
and loan guara.ntee programs to ~he ex-
tent practicable, It the enabling legisla-
tion for a specific gra.nt prObr'"~ pre-
senbes policies or requirements L"lat dJ.!-
fer from the standa.rds provide-: ::ercln.
the provisions oC the enabling l~..s!ation
sha.ll govern. Except where they a:-e spe-
cifically excluded. the pro\isloro..s of t.'1e
attaclunents oC this Circular sM~1;>e ap-
plied to sub-;:"r'antces perform..:..::..,;; sul>-
stantive work under g:-a.:1.ts t=3.t a.re
passed th....ough or awarded by ,:~e pn-
ma..ry grantee if such s~tr.,,=:tt"S are
States, local goverrunents or f~:erilly
recognized Indian tr:balgo\'ern..-= ~:1ts as
define<! In paragraph 7,
7. Definiticm.s. For t.'1e ;:u....';'oses of :h:s
Circular:
(a) The term "gra.nt" or "~::lt.in.-
aid" means money, or propert.:;- ~ lieu
oC money, pa.!d or furnished by :.':e Fed-
eral Government to a Stat.e. ;:':3.1, or
federally recognize<! Indian tr:'::-.;.l go\'.
err.ment under progra:r.s t::at ;-:-o\-::::!e
financial assistance through ~nt or
contractual arrangements. T:~e te~ does
not include technical a.ssist.1.,-:e ;l!"O-
grams Vo'hich prov1de ser....ices lr...;:e-o.d of
money or ot.her a.ss~tance u; t.."-:e f.o:-:n
ot g:e:leral ~e.;e:-n.:e s~::..~..ng, ~..::::.::.s. .Ja:1
guara.nte-es. :"""1.Su~ce. or. C?::~::!:ts
";1;h..ich a:"e €':'1:e:ee. :::tS' ~~C 3.C...~:"-"':'5te:eC
u~cer p:-:cure:::~~t :3.?;S ~d, :-::'o'..:~a.-
tions.
C:J) T:1e te=-::l "State" ~e::.:...s .::.:,,:y of
~he seve:-::u S:-:.:.es of :'~e "Crj:e-~ S::l~es.
the D:str:ct of CO!~':lb1:l., t,'".e C' :.:::::-:on-
?;"~:!-'1 of ~"':[;::Q R~co. 3:..J. ~e~.:,)rj. or
?-.;~~is~cd =y 7HE 3!....REAl.; 0::: S.';7:0:'\AL Ar-f"..1.:RS,t::--':C., 'A..J.,~:~:~':~:-::Sr D.C. ':'C JJ7
c -I
) .,
_-:1
, .
.
09:1542
J:lOS.-~lon of the United States. or any
~e::.cy or Instrumentality of a. State ex-
clilli';e of State institutions ot higher
eduC3.t1on and hOspitals..
(c) The term "local government"
.me:l::.S a local unit ot government in-
cluc.:.'1g specitically a county. municipal-
ity, city. town. township. local public au-
tho~~y. school district. special district.
intrastate . district, council ot govern-
men:.s. sponsor group representative or-
gan:zation Cas deftned in 7 CPR 620.2.
40 n 12472. March 19. 1975) and other
reg:0!:a.! or Interstate government entity,
or a:lY agency or instrumentality ot a
loca: government exclusive ot 1nstitu-
tior~ ot higher education 3.lld hospitals.
(d) The term "federally recognized
Incllin tribal government" means the
go~'eming body or a governmental agen-
cy 0: any Indian tribe. band, nation. or
othe: organized groUp at' community Un-
cluCJng any Native village as defined In
Section 3 of the Alaska Native Claims
Sett!e.:nent Act, 85 Stat. 688) certitied by
the Secretary ot the Interior as eligible
for the special programs and services
Provided by him through the Bureau of
Indi~ Mairs.
8. Attachments. The standards pro-
mu!~.;.ted by this Circular are set forth
In t.':e attachments. whlchare:
Atta.c:.:eot A-<:asl1 deposltortes.
Attac.::..meot B-Bondlng s.nd; Insurs.nce.
Atta..o=::1ent C-Retentlon a.nd cu.stod1al re-
qo.::~ent.s tor recGrd3.
Mta.:~;nent o--Walver or WSlngle" State
age:::y requl:ement.s.
Atta..:~::!1ent E--Prognl:1 Income.
Atta..:~.:nent F-~tcl1lng sl1ue.
Atta.c:.:ent ~ts.nd:l.rd.s lor grantee l1nan-
cl.a.! :::ao&gemeot systems.
Atta.:=::1ent H-Flna.nclal reporting require-
me:::.s,
Atta.c=::1ent I-Mon1torl:::g s.nd reporUng
pre~ ;:>er!ormao~.
Att.a.::..::lent J-Grant payment require-
me::.:.s.
Attac=::1eot K-Budget revlsloo procedures.
Atta..::..:nent L--Orant closeout procedures.
Atta.c:.:::ent ~r-3taodud torIn.! for apply-
m~ :or Federal LS!!staoce.
Att3.c=-:ent N-Property management
st.a.=.c:.uds,
Atta..::.:::.e:l~ O--Proc".llement standards.
9. Request.! for e:rceptions. The Olnce
Mar.~.emenc and BUdget may it'anc ex-
cept:::-cs tromthe requirements ot this
C[rc~r when ~nnlss[ble under eX1.sting
la';;3. ::!o';..ever, in the Interest of keeping
un1!c;-::'!lty to L"le maximum extent, devl-
atlo::..; ~:-om :"'''le requirements ot this CIr-
cul~ ;:;1ll be permitted only in excep-
tior..:;.! ca.ses. .
10. E=ce;:lt:(r.u for certain recipient3.
Not-:::-::'':.standl.:'l.g the provisiOns ot para.-
grap~ 9 1t an appllcant/reclplent h~ a
h1sto'i" of ;loor ;ler!ormance, is not tman-
cia.lly 5:.a.ble, or Its managemenc system
does :.ot meet the standards prescribed
In the Circular, Federal agencies may
lmpcse additional requirements as
neeCee provIded that such applicant/
reci;;:~::t is notL'led In writing as to:
Ca) ";Vhy :.he additional standards are
beln!; :=posed;
(b) ";Vhac corrective action is neeae<1.
Co;::~ ot such notifications shall be
sent :., the O~ce of Management and
Bud;~: :l.'ld oL"ler a!:encies fundini' t.'lat
I
I
HOUSING & DEVELOPMENT REPORTER
recipient at the same time the recipllint
is notltl.ed.
11. Responsibilities. Agencies respon-
sible for administering programs that in-
volve grants to State and local govern-
ments shall issue the appropriate
regulations necessary to implement the
provisions of this Circular. All portions
ot such regulations that Involve record-
keeping andlor reportmg requirements
SUbject to the provisions of the Federal
Reports Act and OMB Circular A-40
must be submicted to OMB for clearance
before being used. Upon request all reg-
ulatlons and Instructions implementing
this Circular shall be furnished to the
Oflice ot Management and Budget. Agen-
cies shall also designate an oflicial to
serve as the agency representative on
tnattets relating to the implementation
ot this Circular. U the name and tltIe
were previously transmitted. notU'lcatlon
to the Oflice of Management and BUdget
is required only when there Is a change
in the designated rep.resentative.
12. Inquiries. Further lntormatlon
concerning this Circular may be obtained
by contacting the Financial Management
.Branch. BUdget Review Division, Oflice
ot Management and Budget. Washing-
ton. D.C. 20503, telephone 395-4773.
BUT LANcz.
Director.
ATTACHlIaNT A-ClItC'tTLA1t No. A-I02
CASH DEPOSITOan:s
1. This attachme'n' sets torth stand-
ards governing the use oC banks and
other Institutions as depositories oC tuncls
advanced under grants.
2. Except for situations descrtbed in
pa.ra.gra.phs 3. 4. and 5, no gra.ntor agency
shall :
(a) Require physical segrega.tion of
ca.sh depositories for funds which are
provided to a. grantee.
(b) ESta.bllsh any eligibility require-
ments for cash depositories far funcls
wnlch are provided to a grantee.
3. A separate bank account shall be
required when aPPlicable letter-ot~credit
agreements prOvide t..'1at drawdowns will
be made when the grantee's checks are
pr~nted to the bank tor payment.
4. A..'"lY moneys advanced to a gran tee
which are subj~ to the control or regu-
lation of the United States or any of its
otncers. agents or employees (publlc
moneys as defined In Trea.sur-j' C1rcular
No. 176. as amended) must be deposited
In a bank with Federal Deposit Insur-
ance Corporation (FDIC) insurance cov-
erage and the balance exceeding the
FDIC coverage must be colla.terally se-
cured.
5. Consistent with the natlonaJ goal
ot ex~ the OPPOrtunities for m1-
nonto; business enterprises, grantees and
subgrantees shall be encouraged to use
mlnor.t.y banks (a ban~ ~hich is owned
a.t least 50 percent by minority grOU;l
members). A list of minority owned
banks can ':le obtained [rom the OOce of
M.inonty Business Enterprise. Depart-
me~t o( Commerce. Washington. D.C.
~02JO.
ATTACHMENT :!>-CIRCULAR No. A-I02
BONDING AND INSURANCE
1. This a.ttachment sets forth bonding
and insurance requirements for grants.
No other bonding and insurance require-
ments shall be imposed other than those
nOl"Inally required by the grantee.
2. Except as otherwise required by law,
a grant that requires the contracting (or
subcontracting) for construction or fa-
cility improvements shall prOVide tor the
gra.ntee to follow its own requirements
relating to bid guarantees. performance
bonds. and pa.ym~nt boncls unless the
construction contract or subconL"'aCt ex-
ceeds $100,000. For those contracts or
subcontracts exceeding $100.000. the Fed-
eral agency may accept the bonding
policy a.nd requirements ot the grantee
provided the Federal agency has made
a determination that the Government's
interest is adequately protecte<1. If such
a detennination has not been made, the
minimum requirements shall be as tol-
lows:
(a) A bid guarantee from each bidder
equit'alent to five percent of the bid price.
The "bid guarantee" shall consist of a
firm commitment such as a bid bond.
cerclfied check, or other negotiable in-
strument accompanying a bid as assur-
ance that the bidder will. upon accept-
;mce of his bid. execute such contractual
documents as may be required within
the time specitled.
(b) A performance band on the part
01 the contractor for 100 percent of the
contract prne. A "performance bond" is
one exec.uted in connection with a con-
tract to secure fulfillment of all the con-
tractor's Obligations under such contract.
(c) A payment band on the part 01
the contra.clor for 100 percent 01 the
contract price. A "payment bond" is one
e.'t6Cuted in connection with a contract
to assure payment as require<1 by law of
all persons supplying labor and mate-
rial in the execution ot the "..ork pro-
vided (or in the contract,
3. Where the Federal Government
guarantees or insures the repayment ot
money borrowed by the grantee, t.'1e Fed-
eral agency, as its discl'etion. ma.y re-
Quire adequate bonding and in.surJ.l1ce it
the bonding and Insurance requirements
of the grantee are noc deeme<1 :ldeq'1:lte
to protect the interesc of the F'e<je::ll
G<lvernmen t.
4. Where bonds are require<1 in the
situations describe<1 above, the bond~
sto.3U be obtaine<1 from COffi;l:lnie.S hold-
ing certitlcates of authority as accept-
able sureties (31 crn 223),
ATT"CH~!:~T C-CZRCULAR ~o. A-IO~
UTE:l'TION AND CUSTODLU. R!:QUIi\E~E~S
rOR RECORDS
1. TI1J.s attachment sets forth :-ecord
retention requirements for gr:lrlt.s. Fed-
eral grantor agencies shall not impose
any record retention requirements upon
gTanteo...s other than those des~r:t>.:d
belo,,' .
2. Financial :ecords, su~;ortins docu-
ments. statLst:c:lI :ecorc.s. J.nd J.U ot::er
records ;;ert:"'1er-,t ~ a g:-:J.nt s.'1all be re-
Publl,i,d ~y THE BCRL...l' OF S....TIOS H ....fF...iR,S. ISc.. WASill\.:;TOS, 9C :0037
c - 2...
:2-!
, ,.
I
1.. 1:,..
COMMUNITY DEVELOPMENT BLOCK GRANTS
tained for a period of three years, with
the follo\\1ng qualifications:
a. If any litigation. claim or audit Is
started before the expiration of the 3-
year period, the records shall be retained
until all litigations. claims. or audit
findings inVOlving the records have been
resolved.
b. Records for nonexpendable prop-
erty acquired with FedernJ funds shall
be retained for 3 years after its final
disposition.
c, When records are transferred to or
maintained by the Federal sponsoring
agency. the 3-year retention requirement
is not applicable to the grantee.
3. The retention period starts from the
date of the submission of the final ex-
penditure report or. for grants that are
renewed annually. from the date oC the
submission of the annual financial status
report.
4. Grantees should be authorized by
the Federal grantor agency. if they so
desire. to substitute microfilm copies in
lieu o( original records,
5. The Federal grantor agency shall
request tr1\nsfer of certain records to its
custody from grantees when it deter-
mines that the records pos,o;es long-tenn
retention value, However. in order to
a void duplicate recordkeeping. a Federal
gTantor agency may make arrangements
with grantees to retain any records that
are continuously needed for joint use.
6. The head of the Federal grantor
agency and the Comptroller General of
the United States. or any of their duly
authorized representatives. shall have
access to any pertinent books. docu-
ments. papers. and records of grantees
and subgrantees to make audits. exami""
nations. excerpts and transcripts.
7. Unless otherwise required by law. no
Fede.ral grantor age;lcy shall place re-
strictions on grantees that wiIllimit pub-
lic access to the records of grantees that
are pertinent to a grant except when
the agency can demonstrate that such
records must be kept confidential and
would have been excepted from disclo-
sure pursuant to the Freedom of Infor-
mation Act (5 US.C. 552) if L'le records
had belonged to the grantor agenCj.
AT,.\CH~!!:NT D-CIRCU1.AR No. .'\-102
WAIVER Of" "SINGLE" STATE .\GE~CT
REQ t"I R E:.rr.rTS
1. Requests to Federal grantor agencies
from the Governors. or other duly con-
stituted State authorities. for waiver of
the "single" State agency requirements
in accordance vdth section ::04 of t.'le
Intergovernmental Cooperation Act of
1968 should be gi\'en expeditious han-
dling and. t\'henever pos.sible. an affirma-
tive res;xmse should be made to such re-
quests.
2. "Vhen it is necessary to refuse a re-
quest for v.-a.i'..er of the "single" State
agency :equirem~nts under sec':ion ::04.
t~e Federal gr:lntor :;.~ency :,andling
s~:c:-: request -;-,1lI so ad'ii.se t~e O~ce of
:-.ranage~~:;t ~,:-,d Bud,;et prior to in-
forming t~e St.,te that tJ-.e :equest can-
::ot ;;e gran '.,ed. Such advice ~hould i:lCll-
CJ. te the ie~~ons for :hc de:1ial of the
:'-"~1..:est.
3. Future legislative proposals embrac-
ing grant-in-aid programs should avoid
Inclusion of proposals for "single" State
agencies in the absence of compelling
reasons to do otherwise. In addition,
existing "single" State agency require-
ments in present grant-in-a.id programs
should be reviewed and legislative pro-
posals should be developed for the re-
moval of these restrictive provisions.
ATTACHMENT ~IIlCU1.AIl No. A-I02
PROCRAM INCOMl!:
1. Federal grantor agencies shall apply
the standards set forth in this Attach-
ment in requiring grantees to account
for program income related to projects
financed in whole or in part with Fee!eral
grant funds. Program income means
gross income earned by Ll}e grantee from
grant-supported activities. Such earn-
ings exclude interest earned on advances
and may include. but will not be limited
to, income from service fees. sale of com-
modities. usage or rental fees. and royal-
ties on patents and copyrights.
2. Interest earned on advances of Fed-
eral funds shall be remitted to the Fed-
eral agency except for interest earned
on advances to States or instrumentali-
ties of a St:\te as provided by the Inter-.
governmental Cooperation Act of 1968
(Pub. L. 90-577) and advances made to
tribal organizations pursuant to section
102. 103. or 10"l of the Indian Self Deter-
mination Act (Pub. L. 93-638).
3. Proceeds from the sale of real and
pe:sonal property, either provided by
the Federal Government or purchased in
whole or in part with Federal funds.
shall be handled in accordance with At-
tachment N to this Circular pertaining
to Property Management.
4. Unless the grant agrement provides
otherwise. grantees shall have no obliga-
tion to t.he FedernJ Government with
respect to royalties received as a result of
copyrights or patents producea under the
grant or other agreement. (See para-
gTaph 7. Attachment N.)
5. All other program income earned
during the grant period shall be retained
by the grantee and. in accordance with
the grant agreement. shall be:
(a) Added to fundS committed to the
project by the grantor and grantee and
be used to further eligible program ob-
jectives.
(b) Used to finance the non-Federal
share of the project when appro~'ed by
the Federal Sponsoring agency; or
(c) Deducted from the total project
costs for the purpose of determining the
net costs on v;hich the Federal share of
costs will be based..
6. Federal grantor agencies shall re-
quire the grantees to record the receipt
and expenditure of revenues (such as
taxes, special assessments. levies. fines.
etc.) as a part of grant project tr:msac-
tions v;hen sech revenues are specL'1cally
earmarked for a grant proiect in accord-
ance -;-dth grant agreements.
AIT.\CIf!lU:ST F'~:RCt'1.AJ\ ~o. A-I02
~"'1'CR:-'iC SHARE
1. This Attachment sets forth c:iteria
3.nd pro~~:,'c:.;.:es ~or the ?.L:,;.^-a:>i.1ity ~r
I
09: 1543
HOR RF-161
4-7-30
cash and In-kind contributions mace .by
grantees. subgrantees or third paTt:es in
satisfying cost sharing and matchir.e; re-
quirements of Federal grantor age::cles.
2. The following definitions a.pply for
the purpose of this Attachment:
(a) I'ro;ect costs. Project costs ll..ooe all
allowable costs 'as set forth In FeCeral
Management Circular No. 74-4 Incurred
by a grantee and the value of t.'le In-
kind contribution made by the grs.ntee
or third parties In accomplishing the
objectives oC the grant during the proJ-
ect or program period.
(b) Cost sharing and matching. In
general. cost sharL~ and matching rep-
resents that portion of project costs not
borne by the Fee!eral Government. Us-
ally. a minlmum percenta.ge for m::.t.ch-
ing share is prescribed by progran:: leg-
islation. and matching share req'.:ire-
ments are included in the grant a;7ee-
ments.
(c) Cash contributions, Cash co:.tr1-
butions represent the grantee's cash out-
lay. including the outlay of money con-
tributed to the grantee by other ':'.lbIlc
agencies and Insti tutions. and private
organizations and individuals. Whe:: au-
thorized by Federal legislation. Fe:eral
funds received from other grants may be
considered as grantees' cash cont:ibu-
tions.
rd) In-kind contributions. In-kind
contributions represent the value ot
noncash contributions prOvided by the
grantee. and non-Federal parties. Only
when authorized b~' Federal legisl::.tlon
may property purchased ...1th Feeeral
funds be considered as the grantee's in-
kind contributions. In-kind contribu-
tions may be in the form of charges for
real property and nonexpendable per-
sonal property and the value of goods
and services directly benefiting and
specifically ider:t1.'1a.ble to the project or
program.
3. General guidelines for comp'.l~L.,g
cost sharing or matching are as follJws:
(a) Cost shari.'1g or matching s~are
may consist of:
(1) Charges incurred by the gr:;..::eee
as project costs. (Not all charges require
c3Sh outlays during L')e grant perie.: Oy
the grantee: examples are deprecis. tion
and use charges for buildings and e~uip-
:nent.)
(2) Project costs fulanced with cash
contributed or donated to the grant~e b>'
other non-Federal public agencies and
institutions. and private o r;;:lniz:'. t ions
and individuals.
(3) Project costs represented by serv-
ices and real or personal property, c: use
thereof. donatee! by other public age::cies
and lnstltutions, ar.d private 01'0;2:.:';:3.-
tions and individuals.
(b) All con~:bt;.ti:Jns, boL'l ca.sh 3..'1d
in-ki.."ld. shall be accepted :..s ;)art c: t..'1e
g~3.:1tee's m:!.~ti::g ~~;!,:"e ,,\'~e~ sue:--. cor:...
t:-~butions meet 3.11 at the ~OU0wi..:~ c..:i..
t.ena:
(1) .ve ye:::1:J.b!e ~:G:7l t:-.e b:-:L:'.~ee's
ree :)rds:
(2) Are not :ncluded a.s CO:1t::::,.~~:ons
for :lny o~;..e=- ~er:::e;-:l..:::,'-~~5i.:tec. ;J~O-
b::.lm:
C-3
Pct':,,::,'J~: T'lL :n RI .\,L' 01 "",T:U'-'lL .\,11 -'liRS. 1"(" \\\.'III't; 10S. 0 (" 2'.1037
Q
, '.
, ,
09: 1544
(3) Arenecessa.ry and reasoo.a.ble for
prop'': and efllcient accompllshment of
projec~ objectives;
(~) .-ve types afchlU"ie:9 that would
be al1owab1e under FMC 74-(
(5) Are not paJ.d by the F~eral Gov-
ernment UDder another a.ss1stance agree-.
ment W)less authot1zed UDder the other
a.gree::mt and the lawa and regu1atioaa
It is subject to.
(!>> Are provide<:l for In the approved
budge~ when required by the Federal
ageIlC7; .and
(7) Conform to other groviaioba at
this Attachmen'.
4. Values for grantee in-kmd contr1-
buti<XlS will be estabUsbe<:l at the cran-
tee's s..:~al cost In s.ccordazrcewit.b"PMC
74-4.
. .5. Specl11c procedures for the grantees
In establlshing the value at tn-k1Dd.con-
tr1butions from noo-Federal ~~
ties are se' forth below:
(a)' Valuattcm 01 oiola"t.ee7' $eTT1f.cc.
Volun:c.er services lI11!J be turnJshed by
profES.iloc.al and techD1cal penonnel.
consul~ts. and other stmed and un-
sk1lled labor. Volunteered service mQ be
count.ed as cost sharinz or matching If
the SC'7tt:e la an integral and nece&B&r7
part ol an approved 'program..
-(1) .~ Jor oolunteer i~. Rates
for volunteers should be consistent with
th05e ;:aid tor s.1mUa.r work In other ac-
tivtUes of the St&t8 or local g1)TerUD1ent..
In ~ lnstances In wh1c.h the requ1red
akill.s en not totmd In the grantee org:.-
~-==:l., ra~ should be co~t, with
thoee ;eJd. tor s1mllar work. in the labor
~ InWhleh the grantee competes
t~ t::lo!. kmd of .sen1ces l.tIvol.ved.
(2'> VoluftUers em~ bv otJr.c
Ot'gc:-~. When an employer other
~. w grantee i'urn.ls.bes the servtces ot
an em ;:lo,-ee, these services &ha.Il be
va.l~ At the employee's regular rate or
pay Ce::clus1ve of. fringe bene1Ua and
ovcte:s.d cost) provided these services
are In the same skJll for which the em-
ployee li! normally paid. .
(b) '1al:aiion 01 cWnatcd e-~z..
J)e'r3lr...:.l propert'rJ. Donated ~le
persou1 property lnc1ude:s such lte:au u
e::cpo>~le equipment.,. omce supplle:s.
lsOOn~l"Y supplles, or workshOO &oDd
c:la.=ocm suwUes. Values M&eSSed to ex-
pendA::~ personal propertylneluded 1n
the =~ or matchlng share should be
~le and should not e:s:ceed t.I:!e
ta..tr ~ltet VBlue at the p~ at the
time c~ the donation.
Cc} 7a.l=tto;l 01 cWnated. ~.d-
ab~ ~3cmal praperty, bWldLn{7.S and
/.and CJf' u.!e t1l.ereo/.
(1) The method used for cha.r11Jlg
rnatc.a=:g share tor donated nooexpeDd-
able personal property, buJlclli1gs, and
land =.31 dlJ1er dependlDg upo.n the pur-
pa;e 0( the grs.nt as tollon:
Ca) It thepurp068 ot the grant 1s to
~ equipment., buildJngs, <)r land to
the g;-~tee or othe.n1se prov1ded a hell-
ity, U:! ~ta.l VBlue at the donated proP-
erty ~1. be cla1med ~ a mat.ching sha..ooe.
(b) "i.! the purpose ot the gnnt !.s to
su?,,.>'j.~ actlv1Ue:I t.ha~ require the use at
equ.!;;~::.t, buildings, M land on a tem-
po r-"'-'l or part- t1m e b8.S1s, de p rec 1a tio n
I
I
HOUSING & DEVELOPMENT REPORTER
or use charges for equipment and build-
Jnp mQ be made. The full value ot
equipment or other capital ~ and
taJr rental charges tor land tn&y be mi1.de
provided that the grantor agency b.&s
approved the charges. .
(2) The value at donated property w1ll
be determined In a.ccordance with the
usual accounting polJcies of the grantee
with the follow1cg qualifIcation":
(a) Li:111& and bouiZdi7td$. The V'alue ot
donated la.Dcl and buildings may not ex-
Ceed.its fair market value, at the time at
donation to.thegran~ as esta.bUsed by
an Independent app~er (e.g., certifle<:l
real property appra.l3er or GSA repre-
sentatives> and certtfied by .. responsi-
ble omcial of the grantee.
(b) None:pendable persOft4l propertv.
'l"be value ot donated nonexpenda~e
personal prOpertyahall not exceed the
f&ll' market value ot equipment and
property of the same age and coodltion
at the time at donatioo.
(c) Use 01 S1)ClCe. The value or donated
space shall not exceed.. the faJr rental
value of compara;ble space as establlsbe<:l
by an'1ndependent appraisal ot compar-
able space and facillties In a. privately
owned 1:ru1ldlng In the same locallty.
Cd) LoGned equipment. The. valueot
loaned equlpment. shall not exceed ita
fa1r rental vallie.
I. 'l"be tonowtng ~u1reml!Dts pert.a.In
to. the IX'&J1tee'.s supportlng recordS tor
in-i:1n.d COOtribUtiOIlS from non-Federal
third parties..
(aJ Volunteer services must be docu-
mented and. to the extent te1LSlble, sup-
ported ~ the same methodS' U3ed by the
grantee tor its employees.
(b) The b&sJs for detem1DJ..ng the
valuation for person.al serv1ces, rnaterla1,
equipment., bu11d.LngS, and Ia.m1 must be
documented.
AT1'ACHlRN'r o-CIllctrLa No. A-IO:!
ST..unJdDS POll GlUJfTD J'DfAJfCIAL X.uUGZ-
MJ:1n SYsn::KS
1. ThJa Att&chment prescribes stand-
ards for lb1a.nc1al management S7Stema
of. grant-supported aetivtt1es of State, lo-
cal. a.nc1 tederally recognized Ind1a.n t...-t-
bal governments.. Federal grantor 8.llen-
ei.I!:s s.b&11 no t impo6e add! ~o:1&l stand-
ard.s on grantees unless spec!f1ca.lly pro-
vided tor 1n o~r Atta.c~ents to tl:J..!s
Circular; However, gran W 8.lleneles are
encolU!LlJed to make suggest:.ons and as-
tis' the gran tees l.n es bblish.lng or Im-
provf!lg tinanclal management syste:!lS
when such asaistance la needed or re-
ques ted.
2. Grantee dna.nclal man~ement sys-
tems shall proVide tor:
Ca) Accurate, current, a.nd complete
c11scIOlNI'e ot the financial results at ea.ch
iJ'S.D.t ?rogram In accordance with re-
portJng requirements set forth In At-
~h~t H to this ctrc.llar. When a.
PedeI'1 gn.lltor agency requires report-
in&: on an accrual basis, the grantee shall
not be required to establlsh ao acCI11a.l
&eeounUng system but s.."..1ll develop suc.."1.
a.ccroal da ta an l t.3 re;>Ol"...,s 0 n the Oe.s ~
ot an anll.lysis ot the docume:n taLloa on
hand.
(b) Records that Identity adequately
the source and application ot tunds tor
grant-supported activities. These record.;
shall contaJn Infonnatlon pertaln1ng to
Federal awards and a.uthOrlz.atIODS, obll-
ptlon.s, unobligated blLlances, assets, 11-
abilities, outlays, and Income.
(c) E1!ective control. over and a.c-
countabillty for all runds. property, and
other assets. Grantees shall adequa.tely
sateguard all such assets and shall assure
tha.t they al"8. used solely tor authorized
purposes.
(d) Comp&ri.son at actual outl8.YS with
budgeted amounts tor each grant. Also,
rela.tlon ot- financial Intorms.tion with
pertonnance' or producUvity .data, 1n-
eluding the production of lUllt cost In-
formation whenever appropriate and re-
quired by the grantor agency.
(e) Procedures to m1nlmJz.e the time
ela.pslng between the tra.cs!er ot funds
trom the U.s. Treasury and the d13-
bursement by the grantee. whenever.
ttinds are advanced by the Federal Gov-
ernment. When 'advances are made by
a. letter-of-credIt method, the grantee
shall ms.ke drawdown.s from the U,S.
Treasury a.s elose as possible to the time
at making ~e disbursements. Advances
made by primary recipient organJ.z.ations
(th~e which receive paymenl:.s'dlrecUy
trom the Federal. Government) to sec-
ondary recipients shall coc,torm sub-
stantiaJly to the same standards of tim-
Ing and amount a.s apply to advances by
Federal agencies to primary recipient
organlzs, tlon.s.
en Procedures for determJ.clng rea-
sonableness. allowabillty and allocabill-
'ty of costs 1n a.ccordance w1th the pro-
vislow of Federal Maa.ngement Circular
74-4.
Cg) ."ccountiIli' records that are sup-
ported by source documentation.
(h) [Deleted]
(1) A systematic meth()d to &.sSW'\.
t1mely and appropriate resolution of
audit .ft.nd.l.cgs and re~-om.mendatioDS.
3. Pr1m&ry grantees shAll require sub-
gran~ to adopt the standards In psr.a-
graph 2, above, except tor the requIre-
ment In subparagraph :Ha), regardln"
reporting forms and frequencies Pl"e-
.scrib:xlln Atta.chment H to this Circlli....l".
AT1'ACRJal'fT H--CI:t~ No. A-102
P'D'I A.."rCIAL IlEl'O Il Tn! C IlEQ o-ntnn:::TS
1. Th1s Attl'.chment pres.:ribes un1!onn
reporting procedures for grsnk~ to:
summarize expend (tuxes made an 1 Fed-
ersl funds unexpended tor each s....an:!,
report the statUlj of Federal cash ad-
vanced, request advances and relr:l~ur:;c-
ment when the letter-<l~-cred1t wethod
is not USl!d; and prt-mulgat.es stand3n:1
torms 1ncident theret('o GI'ntees when
obta1nlng fina.ncial In!ormatlon requlrcd
by Pedel"81 agencies trom subgrant.ces
are not required ~ use the forms con-
tained 1n this A tta.chmen t.
2. The following definitIons apply fOl"
p\U'Pl)5eS at this Attachment:
(a) Accrued ~e1Uiilul"e.;. Accrued
expenditures a.re the char,;es incurred by
the gran tee d ur'.ng a. g1.en period re-
Quiring the ~rov1slon o( tunCs for: (1)
goods and other tan;;"ible property re-
ceived: (2). services ;:>er!o~ed by em-
?,.~'l:",d t'y T!lE lJl R !\l 01 \\1,IOS \L \!.I .\II{S. ! \C. \I, .\SIII \(;1 0\. DC 2'J03 ~
10
c-'1
? t'_
I
COMMUNITY DEVELOPMENT BLOCK GRANTS
I
tlloyees. ~ntractors, subgrantees. and
other payees: and (3) other amounts be-
coming owed under programs for which
no current 5CI'V1ces or performance Is re-
qu1red such as a.nnuitleli. In.:.urance
claims. and other benefit payments.
(b) Accrued i~ Accrued income
Is the sum of (1) es.rnJngs during a
given period from.m services performed
by the grantee; and (11) goods and ';)ther
tangible property delivered to purchas-
ers; and (2) amounts becoming owed to
the grantee for which no current serv-
Ices or performance is required by the
grantee.
(c) Federci1. luT'.d.., authorized. ?edcral
funds author1zed are the total amount of
Federal funds obl1gated by the Federal
Government for use by the grantee. This
amount may include a.ny aut.borized
carryover of unobligated !\Wds trom
prior ~ years when permjtted by law
or agency regulation.
(dJ In-kind contributions. In-Idnd
contributions are defined In Atta.chmeI1t
p to thls Circular.
(e) Obligations. Obligatlons are the
amounts of orders placed. contracts and
grants aW'8rded. services received. aDd
similar transactions during a given pe-
riod that will require payment by the
grantee during the same or a future
period.
(n Outlays. OUtlays or e.xpe:ndJtures
represent charges made to the :>roiect or
progT'3.m. They may be reported on.a
cash or ac:crual b11.sis. For reports pre-
pared on a cash basis. OUtJaY3 are the
sum of actual cash disbursements for
direct charges for goods and senrices. the
amount ot lndJrect expense chArged. the
value of in-Idnd contrfbutlons appUed.
and the amount of c8.s.h advar.ces lUld
paymeots made to subgrantees. Por re-
ports prepared -on an ac.crual ba.s1.s. out-
lays are the sum ot aclua1 css.h d1sburse-
ment3 for dJrect charges tor goods and
services. the amount of indirect expense
Incurred. the value of In-Idnd contrfbu-
::ions appUed. and the net Incres.se (or
decrease) In the amounts o,--ed by the
gTll.ntee for goods and other property re-
ceived. for services performed by em-
ploY~. contractors. sut"gTlUltees and
other payees and o~her amolI'lts becom~
in~ owed under prograIll3 for which no
current services or performance are re-
quired such aa annuitles. Insurance
claImS. and Gth~ beoeftt payments.
(g) Program fncome. Program IDcome
Is defined In Attachment E of t~ Cir-
cular. It.may be reported 1)0 a cash or
accrual ba.s1s, whichever !.s used tor re-
portlng outlays.
fh) Un.obligated balance. The unobll-
gated balance Is the portion of the funds
authortzed by the Federal agency that
has oot been obllgsted by the grantee an("
Is deterin1ned by deducting. the cumula-
tive obl!gstions from the cumuIa.ttve
.funds ~uthor1.zed.
(f) Unliquidated obliqatfoTu. For' re-
ports prepared on a cash basis. unliqui-
dated obllgstionS represent the amount
of Obligations Incurred by the grantee
that h8.s not been paid. For repor..s pre-
pared on an ac.crued expenditure basis.
they represent the amount ot obllgatlons
IDcu.rred by the grantee for which an
outlay has not been recorded.
3. Only the following forms w1I1 be
authorized for obtaln1ng financ1al In-
formatton from gTlUltees.
(a) F'inancial St.c.tus Report (E.r.hilnt
1). (1) Each Federal agency shall re~
quire gI'B.Dtees to use the standardi7.ed
FInancial Status Report t.:> report the
statuS at funds for all nonconstnIctlon
projects or progralhs. The Federal agen-
cies may. however. have the option ot
not requiring the FiI:.a.ncial St.<ltus Re-
port when the Request tor Adva.nce or
Reimbursement (paragraph 4(80)) or
Report of Federal Cssh Transactions
(paragraph 3(b)) is determined to pro-
vide adeq,uate lntor:nat1on to meet their
needs, except Ulat a final Financial
Status Report shall be required at the
cornpletio;'\ of the project when the Re-
quest for Advance or Reimbursement
form is used only for advances.
(2) The Federal agency 5h.all pre-
senCe whetber'the report shall be on a
ca.s.h or ac.crual basis. U the F'edern.l
ageocy requires a.ccrualln!ormatlon and
the grantee's ac.countlDg records are not
09: 1545
IIDR RF-161
4-7-80
normally kept on the accrual basis, the
grantee shall not be required to convert
Its ac.countlng system, but sha.ll dcvelop
such accrual In!ormatlon through an
ansJysis of the documentation on hand.
(3) The Federal agency shall deter-
mine tJ!e frequency ot the Fi.nancla.l
status Report for each project or pro-
gram considering the size and complex-
ity of the particular project or progr.\lD.
Howev~. the re:x>rt shall not lJe req~
more frequently than quarterly or less
frequently than annually except as pro-
vided In subparagraph 3 (a) (1) a.bove. A
tl.n.a1 report shall be required at the com-
pletion of t..~e grant.
(4) Federal agencies shaH require
grantees to S".Jbmlt the Financial StatUs
Report (original and no more than two
copies) no later than 30 da,ys after the
end of each spectned report1l:g period
tor quarterl.1 and semi-annual reports.
and 90 days for annu.a.l and tIDal reports.
Extensfons to reporting due dates may
be granted upon request of the reclpl..,
ent.
(b) Repcrt 01 Federal Cash. Transac-
tio1U (Ezhibit Zl. (U When funds are
advanced to grantees through letten: of
credit or wlth direct Treasury checks.
the Federal agencies shall require each
e;rantee to submit a Report ot Pedera.l
Cash Transactions. The Fedel'1!.1 agencies
shall use this report to assist L"lem tn
mon1toring advances to grantee.~ and to
obtain disbursement information lor
each agreement from the grantee.
Grantees under the Regional DLsburs-
\ng Otlice (RDO) system shall not be
requ1red to submIt a Report ofFed.eral
Cash Tn.nsact1oDS. . For these grantees
Fedel'1!.l agencies shall use 1n!0rmaUon
cont.a1.ned In the Request for Payment to
moo.ltor grcmtee cash ba.lances and to
get disbursement !n!ormatlon.
(2) Federal agencies may require
forecasts of Federal cash requirements
Ul the ''Remarks'' section of the report.
(3) When practical and d~ed nec-
essary, the FederalB.<\encles may re<;.uJre
grantees to report in the ''Remarks'' sec-
tion the amount of excC-.",S cs.sh ac....J.Dces
p. ;,'
r H!-. "l. ~ r ;L' r;! ',\ ,. (/ ',\ L ,: i ':"" S ; '\C. . '\ .:.. ':: ! '- ',; :'J:-;. U C : ,c) 37
11
c-~"""'-
, ,
'09: 1546
In the hands ofsubgrantees and to pro-
vide short narrative explanations of ac-
tloo.s taken by the grantees to reduce
the excess bsJances.
("') Grantees shall be required to sub-
mit not more than the or1g1naf and two
copies of the Report o! Federal Cash
'l'ra.nSact10DS 15 working days following
the end of each quarter. The Federal
agencles may require a - monthly report
from those grantees receiving advances
total.l.ng $1 mJIllon or more per year.
(5) Federal agencIes may waIve the
requirement for submissIon of the Report
o! Federal Cash TransactIons when
mont.'1.1y advances du not exceed $10.000
per grantee, provided that such advanceS
are monItored through other forms con-
tained In this Att&climent, or 1!, In the
Federal agency's oplDJOD., the grantee's
accounting controls are adequate to min-
imize excessive l"edenJ. advances.
4. Except as noted below, only the fol-
low1ng torms will be Tuthor1zed for
grantees in requestJDg advances and re,-
Imbursements.
(a) Request lar Adt1<1nce or Rdm-
11ursement (Ezltibit 3>. (1) Each Federal
agew:y shall adopt the Request tor Ad-
vance or Reimbursement M a standard-
Ized form for all nODcoDStructlon pro--
grams when letters-ot--eredlt Or prede-
termined adVBonce methods are not used.
Federal agencIes., however, have the 01>-
tlon of using this rami for construction
programs In lieu of the Outlay Report
and Request for Reimbursement for COn-
I
I
HOUSING & DEVELOPr-,IENT REPORTER
structlon Programs (subPll~ph 4
(b)) .
(2) Grantees shall be author1z.ed to
submit l'equests for advances lLl."1d reim-
bursements at least monthly when let-
ters-of-credlt are not used. Federal agen-
cIes sha.ll not require the submission of
more than the or1g1na.1 and two copies
of the Request for Advance or Reim-
bursement.
(b) Outlav-repart and r~que::t far re-
imbursement for crmstructfon. f/'Togra7n.S
(Emlbit 4). (1) Each Federal age."1CY
shall adopt theOuUay Report and Re-
quest- for Reimbursement .for Construc-
tIon Programs as the standardized for-
mat to be used tor requesting reimburse-
ment tor construction programs. The
Federal agencies may; however. have the
option ot sub6tltutlng the Request tor
Advance or Reimbursement Form (sub-
para.gra.ph 4(a)) when the Federal agen-
cIes determine that It proVides adequate
In!onnat1on to meet their needs.
(2) Grantees shall be authorized to
submIt requests tor reimbW3ement at
least monthly when letters-at-credit are
not used FedenLl agencIes shall not re-
quire more than the ong'.nal and two
copies ot the Outla.y ~rt and Request
tor Reimbursement tor Construction
Programs.
5. When tne Federal agencies need ad-
d1t1ona.1lnformatlon In using these fomu
or more frequent reports;- the fallowing
shall be observed:
(a) When additional Information I.s
needed to compl}' with legislative re-
quirements. FederRl agencies sh::ill issue
instructions to require gra.ntees to sub-
mIt such in!.onnatlon UI!der the "Re-
marks" section of the reports.
(b) When a Federal agency has de-
termJned that a grantee's 'accounting
system does not meet the standa.rds for
ftnanc!&l management contained In At-
tachment G to this Clrcular..addltlonal
pertinent information to turther monitor
grants and otfier agreements may be
obtaIned upon written notlce to t,be
grantee until such time a.s the system I.s
brought up to standard.
ec) The Federal agency, in Obtaining
1n!ormatlon a.s In paragraphs a and b
above. must comply with reports clear-
a.nce.requirements of the Otnce of Man-
agement and EUdget Circular No.A-40.
as revIsed,
6. Federal e~encles ha.ve the optlon ot
shading out any llne Item on any report
that Is unnecessary for decl.slon-maklng
purposes.
7. Federal agencies should w::cept the
ldentlcal In!orma.tlon from the grantees
In machine usable format or computer
prIntouts In lieu of prescribed formats.
8. Federal age:J.cles may proVide com-
puter outputs to grantees wr.en it will
expedite or contribute to the accurncy
ot reporting.
9. The standa!"d I...rrns ca.n be obtained
from the General Services Administra-
tion.
PUCII,d "> TI!! IllR! \l 01 "\TIO'\L .\Ii .\IFh. 1,\1_ \\\SiIIV, r,)" [) r: "
12
c -4-
1.
I
COMMUNITY DEVELOPMENT BLOCK GRANTS
}
AI'TACHldANT I~IRCULAIl No. A-I02
ldONITOR.m'O AND Ju:POl\T1NO or PROOl\AK
PERFOlU,[ANa
1. This Atta.chment sets forth the pro-
cedures for monltol1ng l!.nd reponing
program performance . under Federal
grants. These procedures are' designed
to place greater rellanl\e on grantees to
ma.nage the day-to-day operations of the
grant-supported activities:
2. Grantees shaJl constantly monitor
the performance tinder grant-supported
activities to assure that time schedules
are being met. projected work unit:; by
time periods are being accomplished,
and other performance goals are being
achieved. This. review shall be made. for
each program, function, or a.ctlvlty of
each grant as setfonh in the approved
grant applIcation or award document.
3. Grantees shall submit a perform-
ance report far each grant which briefly
presents the following for each progn.m.
function, or activity. involved as pre-
scribed by the Federa.l agency:
(a) A comparlson of actua.l accom-
plishments to the goa.ls established for
the period. Where the outilut of grant
programs can be readily quantified, such
quantitative data should be rela.ted to
cost data for computation of unit costs.
(b) Reasons why estabUshed goals
were not met.
(c) Other peninent information In-
cluding, when approprlate, ana.lysls and,
e~planp.t1on of cost overrunS or high \lI'I.1t
costs,
4, Except as provided in e. and b below,
and In subparagraph' 3a(1). of Attaeh-
ment H, gran~'sha.ll submit the per-
formance or technical reports to Federal
agencies and the Financial Status Re-
ports covel1ng the same per~d in the
frequency established by Attachment H
at this Circular arid, where approprlate.
s. Mal technlca.l or performance report
atter completion of the project on e.
date specified by the Federal agency. The
Federal agency shaJl.presutbe.the fre-
quency with which the perlormance re-
ports will be submitted with the request
ror advance ~r reimbursement when
tha.t form Is used In lieu o! the Financial
Status Report. Except as provided for
In para,graph 5 below, perlonnance re-
ports shal! not be requtred more fre-
quently than quarterly or less frequently
than annually, Federal agencies may
;;.'alve the requirement for grantees to
submit perfo~ance reports with the
ftns.ncial reports under the foUowtng
clrctunstances :
(a) When the gnntee is requ1..-ed to
submit a. perforIna.nce report with So con-
tL.'1uation or renewal appllcatlon.
(b) When the Federal agency deter-
mines that on-site technical Inspections
and certified completion data will be
s~cient to e\'aluate construction proj-
ects.
(cl W'hen t.'1.e :~eral ao;e!lcy requests
annual financial reports on a ~scsl year
1::as:S but It 15 necessary to get annual
;lr06!'ess reports on a c~e::c3.:'. year basis.
5, Bet"h"een ",'l.e requ1..-ed :>ertormance
re?OrtL."1J dates, eve::ts :nay OC'Cur ~hich
haye sJ.g-ni5cant impact upon t..'l.e Pl'Oj-
I
09: 1547
HDR RF-136
4-23-79
ect or program. In sucll cases, the 3. Except for construction gr-...::,;s for
grantee shallln!orm the grantor agency which optional payment m~thods s.:-e au-
as soon as the following types-of condi- thor1zed, the' letter-of-cr~t t\.Ulding
tlons become known:' method shall be used by grantor aoren.-
cles where aJl of the 'following co=~tlons
(a,) Problems. delays, or 94verse cOn- exist:
dttionswhlch will mater1B.I1y a.trect the (a) When there Is or w1ll be ll. con-
a.~1'lty to attain program objectives; pre-' tinuing relationship between a ..-a.n~
vent" the 'meeting of time schedules and and a Federal grantor agency for a.t least
loah. or preclude the. atta.ln.m!'!nt at a 12-month period and the total ~ount
project work unit.! by estabUshed time ot advances to be received wl~ that
periods. This disclosure shall be accom- period from the grantor agency is $120,-
panled by a statement ot the action tak- 000 or more.
en, or contemplated. and e.ny Federal (b) When the grantee has es~!1shed
assistance needed to resolve the situa- or demonstrated to the lifantor t=e wtll-
tlOD. Ingness and ability to establish ;;roce-
,(b) Fayorable developments or events dures that will minimize the tlJpe e!aps-
w'hleh enable meeting time schedules' -Ing between the transfer of fun~ and
and goals ._sooner than -anticipated or their disbursement by the grantee.
producing more wQrk units than orlg- (c) When the gTRntee's finanda1rr..a.n-
tnally projected. agement system meets the standz.:d.s for
6. U any performance review conduct- fund control and accountablI1ty p(e-
ed by the grantee discloses the need tor scrlbed in Attachment G to thls C:rcll-
change in the budget estimates in ac- Iar, ,"Standards for Grantee Fi::.mc1a.l
cordance with the criteria._establlshed In Managem~nt Systems."
Attachment K to. .this Circular, the 4. The method of advancing [u;:ds by
grantee shall submit a. request for b.Udget Treasury cneck shaIlbe u..sed, in &.~~ord-
revtston.. ance with the provtsions ot Tre3.sury
7. The gra~tor agency shall make site Circular No, 1075,. when the ...-antee
vtslts u frequentJy as practicable to: meets aJl of the requirements spoe.cified
~a) Revlew program accomplishments In paragraph 3 aboveexc.ept th06e :''1 3.a.
and me.nagement control systems. 5. The reimbursement .by Tre2.Sury
(b) Provtde such technical assistance check method shall be 'the. preferred
as may be reqUired. method when the grantee does no~ meet
8. Federal agencies shall submit pro- the requIrements specified In elt:::er or
POSed technical and performance reports both ot pa,ragraphs 3.b. and 3,c. This
to the Otfice ot Management and Budget method may also be used 'fhen the ma-
for approva.l In accordance with the re- Jor portion of the program Is a.:com-
port clearance reqUirements of OMB C1r- pUshed through private market financing
cular No. A-40 as rev1seC. or Feder~l !oans. and when the F-edera..l
grant assIstance constitutes a mino~ por-
ATTACH~lfT J~IRCULAR No. A-102 tlon of the progra...n. "W1len the reim-
bursement method Is used the F-e-deral
agencies shall make payment -;:;-ithin
thirty days ll.fter receipt of the billing
unless the ~Illing Is Improper.
6. When the letter-of-credlt ;;~oce-
dure Is used. the grantee shall be i.ssued
one consolidated letter-of-cred1t "hen-
ever possible to cover anticipated cash
needs for all grants awarded by Ule Fed-
eral agency. ~kev.1se, to the exten; pos-
sible, when the ad"iance by Tre-.:..sury
check method Is. used, adva.nc.es s:::ould
be consolidated (pooled) for all r;:-a.nts
made by tl'1e Federal agency t.:> the
grantee.
7. Unless othC!"Vo1.se re.::u1red ~ Ia.w.
grantor agencies shall toot withho!:: ;-ay-
ments for proper cha.r;:esmade by State
and local governments at any time dur-
Ing the grant pe:1od unless (a)" a. Ir."..ntee
has faUed to C()m.;>ly o;r,1th the pro,,-.am
objectives, grant award condJtlor..s. or
Federal reporting re.::ulre!nents, or (b)
the g:-antee Is indebted to t..'1e l;~ited
States a.nd collection of the Ir..de?ted-
ness 'il.1II not impair a.cco~!.lshm..e=t ot
L'1e ob;ectlyes of a.."iy grant prr.,~
sponsored by the United States, t:'"der
such con d1t1ons, the gra.ntor ma.y, ~n
reasor..able notice. inform the &-"""""-": tee
that payments o;i;lli ,,0; be :n.a.de !c~ obll-
6'8.tloru L-.ccr-red 3.!ter a. s;:>eC~ed ~te
until the cond1tlor.s are corrected O~ :be'
:ndebteCness t.:> the ?eCera! 3'o';er---=:.ent
15 llqWCated.
C;UNT P,~Y!d:E:'"T l\EQlnREMENTS
1. This Attachment estabUshes'required
methods ot making payments to grantees.
These methods Will minimize the time
elapsing between the disbursement by a
grantee and the trar.sfer of funds from
the Unlted States Treasury 'to the
grantee, whether such disbursement oc-
curs prior to or subsequent to the transfer
ot funds.
2. Q.nl.nt payments are made to
granteeS through a. letter of credit, an
advance by Treasury check, or a re1m.-
bursement by TreBsury check. The fol-
lowing defu11tlons a.pply tor the PUrpQ5e
ot th.1s Attachment:
(a) Letter 01 cred!t. A letter of credit
Is an instrument certified by an author-
Ized oa!clal of a. grantor agency which
author'.zes a. grantee to draw funds
needed for 1mmed1a.~ disbursement in
a.ccorda.nce wtth the provtslons of Treas-
ury Circular No. 1075.
(b) A,dt'a7lCe by TrecuuT1I check. An
advance by Treasury check: Is a payment
made by a Treasury check to a gran tee
upon' Its request before cash outlays are
made by the recipient or through the we
of predeter:n.l.ned payment schedules
before parments are made by the grantee.
(c) Reimb-.lrument by TreCUUT'lI check.
A reimbursement by Tres..sury check Is a
paymeht :nade to a ;rrs.ntee v.-1th a
Treasury check upon request for rc:m-
bU~:nent from t..'le grantee.
?c~~l,,,d ~\ ::!E ::l:::E\!.. CiF \.\TiO:->>.L .\Fr.,Ii'S. ;'C. ',\AS;iI:->GTO:->. DC >'lJ7
.) ..)
c-7
I
I
09: 1548
HOUSING & DEVELOPMENT REPORTER
Ca) The revision resultS trom changes
III the scope or the objective of the proJ-
ect or program.
Cb) The. revision Ulcree.ses the budg-
eted amounts of Federal funds needed
to COII1~ the project. .
T. When &c-grantor ..ency awards a
grant which prov1des support toe both
construction' and noDCOn.struetion work,
the gnU1tor agency may require the
grantee to request prior approval from
the grantor agency I1elore ma~ any
fund or budget €ra.&ters between the two
'types of work supported. .
8. For both conStruction and non-
construction gTants, grantor a&"encle:s
shall require State and local covern-
ments to notify thegTantor' atenCY
promptly whenever the 'amount of F'e<1-
eral authorized funds la expected to ex-
.ceed U1e needs at the grantee by more
than. $5,000 or 5 percent of the Federal
grant, wb1chever is ireater. Th1.s not11'\-
cation w1ll not be required when applica-
tions for add1tional funding ue submit-
ted for con~uing grants.
9. When requesting approval for bud-
Jet revisions, gran~ shall UlSe the
.>Udget forms wb1ch were used in the
uant appUcation. However, gTantees
may request by letter th.e approval re-
quJred by the provisions of Federal
Mana,gement C1rculu 74-4.
10. Wlt.h.1n 30 days. from the date of
receipt of the request [or bud~t re'/1-
stons, . grantor agencies shall review the
request 'and notl!y the grantee whetber
or' not the budget revisions have been ap-
proved. U the revision Is st1ll under con-
sideration at the end oC 30 days, the
grantor shan In!orm the grantee In writ-
ing as to when the grantee may expect
the decision.
ATTACK!ll&:NT ~C1n.AJt No. A-I02
8. Attachment H of this Circular, "FI-
ne.ncial Reporting," ProVIdes for the pro-
cedures and fo.rmJ;-for requesting ad-
vances or reimbursements.
AnACKM!:NT K~C1n.AJt ~o. A-I02
3. All Federal grantor agencies shall
'establish grant closeout procedures which
Include the followln.g requirements:
(a) Upon request, the Feder-a.l grantor
'agency shall ma.ke prompt payments to
a grantee tor allowable reimbursable
costs under the grant beinlO closed out.
. (b) The grantee shallimmed1ately re-
fund to the grantor agency any balance
of lmobllgated . (unencumbered) ca.s.l1
advanced to the grantee that Is not au-
thorized to be retaJ.ned by the grantee for
use on other grants. .
. (c) The gn.ntorli.gency shall obtain
from the grantee within 90 days atter
the date of completion oC the grant all
flna.nclal. performan~, and other reports
required as a condition oC the grant.
The. agency may grant extensions when
requ.ested by the grantee. .
Cd) When author.zed by the grant the
grantor agency ~ m&ke a settlement
for anx. upward or downward a.dJust-
ments for any upward or downwud
adjustments to the Federal.share oC costs
alter these reports ue receIved.
(e)'I'he grantee shall a::count for any
property acquired with grant funds or
received from the Government In 'ac-
cordance with the provisions of Attach-
men t N to thls Circula:'.
. (n In the event a. final audit has not
been performed prior to the closeout of
the grant, the gn...'1tor a&"ency shall re-
tain the right to recover an' appropria.te
&mount a!.ter full7 con.slderL'1g the re-
commendations on d1sal1ov,;ed costs re-
sulting from the final audit.
4. All Federal grantor agencies shall
prov1de procedures to be followed when
a grantee has failed to compiy with t..i.e
grant awud stipulations, standard{;, or
conditions, When thatOCGllrS, the grant-
or agency may, on rec.sonable notice to
the gTantee, sUspend.the grant, and w1th~
GUNT CI.OSEOtIT PROCZDVlU:S hold further payments, or prohibit the
1. ThIs Attachment pres:ribes unl!orm gTantee from Incurring addItional 0011-
closeout procedures for grantees. gattons of grant funds, pending cOrrec-
2. The fOllow1ngdefihitions shall apply tive action by the. grantee or a decision
f~ the purpose oC thh Attachment: to terminate In accordance 'wit..'l. p.a.ra.-
~&) Grant closeout. The closeout of a gTaph 5.a. The gr:l.ntor agency shall allow
grant Is the process by which a Federal all necessary and proper costs which the
granbor age.'1CY determines t..i.at all ap- gr:l.ntee could not reasonabiy avoid dur-
plicable administrat1ve actions and all Ing the period of suspension p'rovided
requiredwork ot the grant have ~n that they meet the provisiOns of Federal
completed by .the grantee and the M~n.a.geme.'lt Circular No. i4-4.
grantor. - 5. Subject to the prov~lons at pllr&-
(b) Dc.te 0/ completion. The date v;he."'l graph 5 of the basic Circular. of "..hlch
all work under a grant Is oompleted or this Attachment Is a. part, all Federal
the date In the grant awud document granter agencies sr..aU prov1de ror the
or any supplement or amencinent there-: systemal!c settlement of terminated
to, on wh1c.b Federal assistance ends. grants Including the folIowir.g:
(c) 'Terminatio7t. The termination ot (a.) Tf!T7nina.t:cm for cau.se. The grant-
a grant means the cancellation oC Fed- or agency may termt.."'late any grant In
era! assistance. In whole or in p&rt, under whole. or In part, at any time before the
a grant at any t1:ne Prior to the date of date oC oomplet1on, whenever it Is de-
completion
Cd) Suspen.siorl. The suspenslcr.:1. of a ter.n1ned ~t the grantee has falled to
irant lis an act.1ol1 by' a 'Fedenl grantor comply with the co!:dltlons of the grant.
agency which ~ponu1ly suspends 'Fed _ The gran tor agency shs.1.l prom? tl.y no illy
era! assistance under the gTant pending the g-rantee In w;itlDg of the det.ertri.l.n&-
corrective actlon by the g:-snt,e.e cr ;>ezla- tiOD and the .re-a.solU tor t.he te.'"lI1inatlon,
in&' a' decision to termlna.te t.'1e grant together With the~ectlve d3.te. Pay-
by the grantor a&"eney,
(e) Di.sa1l0l<<d cost..r. Dtsallowed oos+.... ments made to lr.'Bot.ees or ~over.es bY'
Me .those charges to a iJ"lUlt whIch the Ule grantor agencIes under !;rants terml-
e:r=tor agency or Its. t:epr'esentatlve de- nated for cause shslI be In accord 'Sith
te.~1nes to be unallowable. (See Federal the leg1I.l rl6bts and l.I.abukes of the
Manager:nen t .C1rcu1.3: No. 7~.) putle.s.
THE Bl RL\L' OF SA TIO'i -U-\FF-\l RS, ISc.. w -\S!!! :"G"TO.'O, DC 2')037
BaDGET R..E'VISION PKOCEUVRES
1. This Attachment sets forth critena
and procedur~ to be followed by Federal
grantor a.gencies in requJririg grantees to
report deviations from grant bUdgets and
to request approvals for bUdget revisions.
2. The grant bUdget as used In this
Attachment means the approved ftnan-
cial plan .for bOth the Federal arid non-
Federal shares to carry out the purpose
of the grant, This pIan Is the financial
expression of the project or program as
approved during the grant application
and award process. It should be related
to performance for program evaluatioli
purposes whenever appropriate and re-
quired by the grantor agency.
3'. For nonconstructlon grants, grant-
ees shall request prior a.pprovals
promptlY trom~tor 'agencies when
therE:' is rea.son to believe that a. revision
will be neCessary for the follOWing rea-
sons:
(a) -changes in the scope or the.ob-
Jective oC the grant-supported project or
program.
(b) The need for additional Federal
fundlni'.
(cl The revisIons involve the transler
of amounts budgeted 'for indirect C06ts
to absoro Increases in direct costs l! ap-
proval is required by the Federal agency.
(d) The revisions pertain to the addi-
tion oC items requiring approval 1Ii ac-
cordance with the provisions of Federal
~anagement Circular '14-4.
(e) Recipients plan to transfer funds
allotted for training allowances (direct
payments to trainees) to other cate-
gorie3. of -expense,
4. FOr nonconstructlon grants the Fed-
eral ~e:lcy may a.1so. at Its option. re-
strict transfers of funds among direct
cost ca~lories for a9..ards In which the
Federal s.'1are exceeds $100,000 \lo'hen the
cumubt:...e amount of such transfers ex-
cee<ls or:.s expected to exceed lhe ;ll!:'cent
of the (.jtal budc;et. The same crit-eria
shall a.pply to the cumulative amount or
transfe,s among progTam.s. functions.
and act:'.ities when bud6etcd separately
'for an a~-ard, except that the Federal
a.gency shall permit no transfer that
would C3.~e any Federal appropriation,
or part L'1ereof, to be used for purposes
other tha:l those intended.
5. All other changes to .nonconstruc-
tion grant bUdgets. except for the
changes described In pa.ragraph 7. do not
requite 3{>prcval. These changes include
(a) the use ~t grantee funds In further-
anceof progra.m, objecUves oVer and
above tbe grantee minimum .share in-
cluded In the approved grant budget, a.nd
I bl the transfer of amounts b-udgeted
for dire.:~ C06ts to absorb 8.I.Ithor1zed in-
creases In Indl.rect costs.
S, For .construction grants. grant-ees
shall reoq....est prior a.pprovals promptly
from gr~~r agendes for bUdget revi-
&1olU \lo.he:-.e....er:
Publ,;l1d b~
30
c -<;-'
I
COMMUNITY DEVELOPMENT BLOCK GRANTS
I
b. Termination for convenience. The
grantor agency or grantee mayterm.lnate
grants in whole, or in pal"t, when boUl
partIes agree that. the continua.tlon ot the'
project would not produce bene1iclaA- re-
sults commensurate with the turtller ex-
penditureot,tunds. The twopartJes shall
agree upon the term1D&t1on ,conditloM.
including the effective date and, in the
ca.se ot partIal terminations, the portIon
-to be terminated. The grantee shall not
incur newobllgatlons tor tlle tenninated
portion a!ter the effective date, and shall
cancel as ma.ny outstanding obligations
u pos.s1ble. The Federal agency shall al-
low full credIt to the grant.ee tor the
Federal sha.reo! the noncancelable ob11-
gatlons, properly incurred by the grantee
prIor to terml.natlon.
ArrAc1D:CENT M-Cmc17LA.a No. A-I02
Sl'AND4lUl roaMS roll A,PPl:,nrc roB
nuUAL ASSISTANCJl
1. Th1s Attachment promulgates
standard torma to be used by State. local,
and. federaU7 recognized Indian tribal
govermnents in applying for all Federal
grants except those Federal formula
grant prognms which do not require
grantees to apply tor Federal tunds on a.
project ba..s1s. When app1yingtor Joint.
tundedprojects see OMB C1n:uIe.r No.
A-Ill. The use ot the standard torms by
grantees In obt.a1n1ng necessary 1n!orma-
t10n from subgrantees Is optional.
2. The standard torms and theIr pur-
poses 87e brle11y descrIbed in the tollow-
Ing paragral>hs:
,(a) Preapplication Jor Federal Asri&t-
ance (E%ll.ibit 1). Prer.ppllca.tlon. for
Federal Aaststance Is used to: (1) Es-
tab11sh commun1cs.tlon between the Fed-
eral grantor' agency and the applicant;
(2) determ1ne the altP11cant.'s ellg1l:lWtJ;
(3) determ1ne how well the project can
compete 'I01th similar appllca.tlons trom
others; and (4) el1mJnate any proposals
wh1ch have lit.tle or no chance tor Fed-
eral funding before appllcants incur sig-
DtOcant.. expe~tures for prepartcg an
appllcaUon. Preappllcatlon torma .shall
be requ1red tor all construction, la.nd ac-
quJsltlonnand land development proj-
ects or progra,ms tor wb..lch the need for
Federal tunding exceeds $100,000. The
Federal grantor agency may require the
use of 't.~~ preappllca.tlon torm tor ot.'ler
types ot grant programs or for th.o6e tor
whIch the Federal tund request Is tor
$100,000 or less. In addition. Federal
agencieS shall establlsh procedures al-
loW1ng State and local governm~nt ap-
pllcants to subm1t, If they so desire, the
preappllca.tlon form when mandatory re-
quirements tor pres.ppllcatlon do not
ex1st.
(b) ,votice 01 RevietD Action (Ezltibit
Z). The purpose ot the Notice ot Review
Action !s to intorm the a.ppllcant ot the
results ot to'le review at the preapplica-
tlon torms which were submitted to Fecl-
en.l r.antDr agencIes. The Federal
6'rantor agency sha.ll send a notice to to'le
applica.nt ~iUtin 45 days ot the receipt
of the ;;:-e-a.ppl!cat!on form. When L'le re-
\1ew C2."\."':ot be maee o;;-;thi.."l 45 daj's. L'le
ap;;~ca.l'lt shall ':le intor.:-:ecl by letter s.s
tD when the rev!ew ..-'Jl be completed.
(c) FederclAssl.stance AppZicc;tlon Jor
,voncon.structi.cm Program.! (Ezhibit J).
The Federal Assistance Appllcatlon for
Nonconstructlon Programs form Is de-
signed to accommodate sevetal progrs,ms
and shall be uSed by the applicant tor all
actions covered by this Attachment ex-
cept where the major purpose at the
grant Involves construction. land ac-
quisItIon, or development or single-pur-
pose and one-time grant applications tor
less than $10000 whIch do not require
clear1nghouse approval, an environmen-
tal impact statement, or the relocaUon ot
persons, businesses. or farms.
(d) Fed.eral Assi.stance Application lor
Con.struction Program.! (E zhibit' 4) . The
Federal Ass<.stance Application for Con-
struction Programs torm shall be used
tor all grants where the lIl.llJor purpose
ot the program 1nvolve& construction.
land a.equlsltlon, and land development,
except when the Appllcatlon for Federal
A.ss1stance-Short. Form (paragraph 2e)
Is used.
(e) AppUcatfon lor Federal Assl.st-
ance-s7r.ort Form (E%ll.ibtt 5). The Ap-
pllca.tkln tor Federal Asslstance-Short
Form sha.11 be used tor a.!1 grants for
slngle-purp<l6e and one-time gr&nt a.p-
plicatlons tor less than $10,000 Dot re-
qu1r1ng clesr1Dghouse approval, an en-
vtronmental1mpact statement, or the re-
location ot persons, businesses, or tarms.
Federal grantor agenclC$ may, at their
dJscretlon. authoriZe th~ use ot t.h1s torm
tor applications tor larger amounts.
3. For all torms descr1bed herein all
requ'7ts by grantees for changes. con-
tinua.lons, and supplementals to ap..'
proved grants shall be submitted on th~
sa.me torm sa the or1g1na1. application.
For these purposes, only the required
paees of the forms should b subm1tt.ed.
4. Federal agencies may spec1ty and
de:scr1be t.'le programs, tunct1oD.S, or ac-
tivities whIch will be used to pla.n, budg-
et. and evaluate the wprk under the
rrant programs.
5. When additional lntorm:;!.tion l.s
n~ed to comply wIth leg'..s.latlve re-
quirements or to meet specl!ic program
needs Federal ~encies must comply w1th
t."l.e reports clearance requirements of
OOke and Ma.ns.g-ement BUdget. Clrcular
No. A-40 sa revised.
6. AddItIonal assurances shall not be
a.dded to t..'le st..:l.ndard assurances con-
tained In the Clrcular unless spec1tlca.l!y
required by law,
7. Federal agencies have t.'le option ot
sha.d1ng out any line Item on a.ny form
tha.t is unnecessary tor dec!slonmaking
purposes or tor meeting the requirements
ot other cIrculars or laws except for the
Standard Form 424. TI1.l.s form should
not be altered. It an Item Is not a>l~llca-
ble. write or o';erpl"1nt "=-<A" In th~ space
;lrovlded tor each Item.
8. Grantees shall submit the ort&"'.;lal
and two cO>lles ot L'le a;l?llcatloll.
9_ Federal i:!"a:1UJI' agencies a.re au~or-
~d to reproduce these for.:'.s. The for.:-.s
for reproduc:ion p'.L?o.;es can be ob-
tained [;om the O~ce ot ~.{a.:1age=e:1t
and Bud;:et. TI-.e St..;...,cal'd Fo:-::'l ~2{ ca.o.
be obtalnecl [;0:::1. the General Services
AdmInistratIon.
c.-9
?"::;;';c,j~; T::E :H..R.E"L Of' SAT:O',L ."FF\iRS. 'c. ',\J.S:,;\'G ,OS, D.C ::'J:ii
09:1549
lID R RF - 136
4-23-79
31
09:1550
An.\CH!aN"r N-CIRclJ'uJt No. A-I02
PRO?EATY MANMtMDlT STA...'l1l.fJlDS
1. TIlls Attachment prescribes un1torm
standa.:ds governing the uttlizatlon and
Q1spositlon o( property (urnished by t.'le
Federal Government or acquired In
whole or In part. with Federal funds or
whose cost WllS charged to a proJect sup-
POrted by a Federal grant. Federal
grantor agencies shall require grantees
to obse:ve these standards under gra.nts
from the Federal Goven..ment and shall
not lmpose adcUtlonal requirements un-
less speclftcally required by Federal law.
The grantees shall be authorized to use
their 0= property management stand-
ards acd procedures as long as the pro-
visions of this Attachment are included.
2. The foIlowini definitions apply tor
the purpose o( this Attachment:
(a) Real property. Real property
means Ia.r..d, IncludJng land improve-
Ir!~nts. structures and appurtenances
thereto. exclUding movable machinery
and equipment.
(b) Personal 'P1'operty, Personal prop-
erty of :my kind p.xcept rP.al property, It
may be tangible-having phYSical exist-
ance, or intangible-having no physical
existence. such, as patents, Inventions,
and copyrights.
(c) Nonerpendable persona.l propert'J,
Nonexp"ndable personal property means
tangible personal property having a use-
ful llIe of more than one year and an
acquisltl'on cost of $300 or more per unit.
A grantee may use Its own definition ot
nonex!)e:ldable personal property pro-
vided th.l.t such definitIon would at least
Include ~ll tangible personal property ~
defined lbove,
(d) E:pendable personal property, Ex-
pendable peI'5onal property refers to all
tangible personal property other than
nonexpe:ldable property.
(e) E;cess 'P1'opertll. Excess property
means property under the control of any
Federnl s.gency which, as determined by
the hes.d thereof, is no longer required
for its n~ or discharge of Its responsi-
bW tle.:l ,
(f) Ac::~i.sition cost of purchC13ec! 11.011.-
e:r;>omdcJle personal 1JT01Jertll. Acqul-
siUon cc.;t ot an item ot purchased nell-
expend2.:!e personal property means the
nee invo~e unit price of the property In-
cludin6" :.':e cost o( modlftcatlons. attach-
ments, a.ccessories. or 'auxiliarj aplJara-
tus necessary to make the property usa-
ble for :.':e purpose for which It was
acquired. Ot.,er charges such as the cost
.of lnst2.llatlon, transportation, taxes,
duty, or ;>rot.ectlve In-tr:wslt insurance,
shall be included or excluded from the
unltacc;'.:isitlon cast In accordance w1th
the gra:::ee's regular accounting prac-
t1ces,
(g) E:empt prope:rt'l. Exempt property
means t.an6ible perwnal property ac-
quu-ed in ;vhole or In part with Federal
funds, a::,i title to which is vested In the
reclptene wit.,out further obligation to
the Feee:-3.l Government except as pro-
vided in subparagraph Sa. below. Such
uncond::'::nal vesting of title will be pur-
suant to a..::.y Federnl legislation tl-.at IJro-
I
I
HOUSING & DEVELOPMENT REPORTER
vides the Federal sponsoring agency with
adequate authority, .
3. Real prO]>ertll. Each Fl!deral grant-
or agency shall prescribe requirements
for grlUltees concernini the use and dis-
position ot real property funded partly
or wholly by the Federal Government.
Unless otherwise proVided by statute,
such requirements, as a minimum, shall
conta.in the following:
(a) Title to real property shall vest in
the recipient SUbject to the condltion
that the grantee shall use the real prop-
erty for the authorized purpose -Dt the
original grant as long as needed.
(b) The grantee shall obtain approval
by the grantor agency tor the use ot the
real property in other projects when
the grantee determJnes that the pcoperty
is no longer needed for the original grant
purposes. Use In other projects shall be
lim1ted to those under other Federnl
grant IJrograms, or programs that have
purposes consistent with th06e author-
Ized for support by the grantor.
(e) When the real property Is no long-
er needed a.s provided in a and b abo~'e,
the gI'a.ntee shall request dlsposltion in-
structions from the Federal agency or its
suce~sor . Federal. agency. The Federal
agency shall observe the follOWing rules
In the cUsposltion In.structions:
(1) The grantee may be permitted tp
retain Utle after It compensates the Fed-
eral Government in a.n amcwnt computed
by applying the Federal percenU4:'e ot
participation In the cost o( tne original
project to the fair market VlI.lue ot the
property.
. (2) The grantee may be directed to
sell the property under guidelines pro-
vided by the Federal agency and pay the
Federal Government an amount com-
puted by applYing the- Federal percent-
age of participation In the C05t of the
original project to the IJroceed.s from ~Ie
(&Iter deducting actual a.nd reasonable
selling and tl..'(-up expenses, It any, trom
the sales proceeds). When the grante-e Is
authorized or required to sell the prop-
ertj", proper sales procedures shall be es-
tablished that provide tor competition to
the extent practicable and result in the
h4;hest poss:ble return.
(3) The grantee may be cUrected to
transfer title to the property to the Fed-
eral Goverrunent IJrovided thae In such
~es the grantee shall be entitltX1 to
compensatloa cocputed' by applying the
grantee's percentage of participation In
the cost of t.'le program or project to the
current fair market value of the prop-
erty.
4. Fed.erall'l OlD1lec! none:rpen4atle
pe:rsor.al 'P1'rr.>eTtil. Title to federally
owr.td property remains vested in the
Federal Government. Re1:1plents shall
submit annually an inventory llstlng of
federally owned property In their custody
to the Federal agency. U'pon completion
ot the agreement or when the propertY
is no longer needed; the grantee s.,all
report the property to t..'1e Federal agellCY
.tor tur:"'1er agency ut:.llz:1tlon.
I! the Federal agency has no furt.,er
need tor ~":e proper:y. it shall be declared
excess and re::-or~ to the General Serv-
Ices AdmillJ.stratlon. Appropriate cU.spo-
slUon lnstructions will be Issued to the
recipient after comlJleUon of the F-ederal
agency review.
5. Ezempt 1JTopertll. When statutory
authOrIty exlst., title to non expendable
personal property acquired with. project
funds shall be ve!:ted 10 the reclpient
upon acquisition unless it Is determined
that to do so is not In the furtherance
ot the objectives of the Federal sponsor-
Ing agency. When title is vested III the
recipient the recipient .mall have no
other obl1gatlon or accountability to the
Federal Government for its use or dis-
position except as provided In 6a below,
8. Other none:rpenc!able proiJertll.
When oth~r non-expendable tangible
property Is acquired by a grantee with
project funds title shall not be taken
by the Federal Government but shall
vest in the grantee subject. to the tollow-
Ing condltioos:
(a.) Right to transfer title. For Items
of nonexpendable personal property
having a unit acquisiUon coot ot $1,000
or more, the Federal,agency may reserve
the right to transfer the tlth,. to the
Federal Government or to a third party
named by the Federal Government when
such th1rd pa.rty is otherwise eligible
under existlni statutes. Such reserva-
tion shall be subject to to'le fOllowing
standards :
(1) The property shall be approlJrl-
ately Identified In the grant or other-
wise made known to the grantee in
writing.
(2) The Federal agency shall !.ssue
Q1sposition instructions within 120 cal-
endar da.ys after the end of the FeCeral
support at the project for which it was
acquired. I! the Federal .agency !a.1ls to
Issue disposition lnstructions within the
120 calendar-day period, the grantee
shall a.pply the' standards of sub para.-
gralJh 6(b) and 6(c) as appropriat.e.
(3) When the Federal agency exer-
cises Its right to take title, the personal
property shall be subject to the provi-
sions tor federall1-owned nonexpenda.ble
propercy di.scussed In paragraph ~,
above.
(4) When title is transterred elther
to the Federal Government or to a. third
party, the provisions o( subpa.ragraph
6(c) (2) (b) should' be followed.
(b) Use of other tangible ncne:r~I.;J.-
able ;JT01Jert-J lor whic;h tlte gra.ntee J:c.s
title.
(1) The grantee shall use t.'1e proper-
ty in the project or pro!;ram for wh!c.'1
It was acquJred as long ~ nee-1ed,
whether or :lot the project or progr-arr.
continues to be sUIJPorted. by Federal
fund.s. When no l~nger needed for the
original project or pro!;ram, the grantee
shall use the prolJerty In connectIon with
Its other federally sponsored activities,
In the !ollowi.lli: order ot. prior: ty:
(a) Activities spons~r~ by :.'te same
Federal agency.
(b) ActiviUes s;>onsored by other Fed-
eral agencies.
(2) Shared ~e. Dur::1i: ~~e ~!:r..e :.''13. e
oone:tpendable personal property 15 held
for use on u:e project or pro....a:n for
whlch It was acc;uire-1. the !;ran tee s..':al.l
Publl,,,,.J ~y TIiE BlRE.-\l Of' .\-\TiO-':\L -\f'F-\iRS. 1'\C, W.-\Slii'\GTO:"', DC :'jl)37
C -/0
~..,
.j.:.
. > ~Or.HvlUNITY DEVELlpiVIENT PLOCK GR..ANTS
make It ava.1lable for w;e on otbc't proJ-
ect.9 or programs 'It such other use 'w1lI
not Interfere with the work on the proJ-
ect or p!"OgI'Sm for whJch the property
wa.s or1g1nAlly e.Gqu1red. First prderence
roi such other. use &hall be given to other
projects or programs sponsored ~y the.
Federal agency that tmancOO the prop-
ertY" second preference shAll be given
14 . projects or programs spon65red by
other Federal agencies. II the property
Ls' owned by the Federal Government.
use on otj,)er' actlv1Ues not sponsored by
the Federal Government shall be per-
mlsslble It buthorlz-ed by the Fedeoral
agency. . Uoer charges should 0 be con-
sidered It arpropriate.
rC) I)isposition 01 oth.er none.rpend-
able properlll. W11en the grantee no
longer needs the property ILS provided
In 6b above.' the property may be used
for other activities In accordlLDce with
the followmgst..:;.ndards:
. n)' Nonexpeodaille property with a
unit acquisition cost of leSs thlLD $1,000.
TIle' gr,an tee - may use the property for
other acUv1Ues without reimbursement
to the Federal Government or sell the
property and retain the proceeds.
(2) Nonexpends.ble personal -proper't;y
with & unit aCQuisitIon cost of $1,000 or
more. The grantee may retain the prop...
erty for other uses provided that com-
pensatIon is mad!! to th~ orlg1nal Federal
l!.ge!lCY or ltS successor. The amount of
compen..<<atlon shlill be computed by ap.-
Plylng'the percentage of Federal par-
tlclpatfon in L'le <:ost of the original
project or program to .the current fair
market value ot the property. II the
grantee he.s no need for the property and
the property hILS further use value. the
grantee shall request disposItion instruc-
tions from the or1g1nal gntntor agency.
The Federal agency shall determine
whether the property can be used to
meetUie agency's requirements. II no
requirement exists ",.~thln that agency,
the a\'aUabUlty of tlle property shall
be reported, In accord.B.Dce with the
guidelines ut the Federal Property
Ma.'1agement Regulations (FPMR). to
the Genernl 3enices Adm1cistrat!on by
the Federal agency to determine' whether
a -requirement for the property exists in
other Federal agencies. The ~de:-al
e....ency shall Issue Instructlons to the
~ntee no !Ate:' t.l'lan 1~0 csyS after
the grantee request and the foIIowL"1g
procedures ShsU govern:
(a) II so Instructed oro It dlspos.ltlon
Instru"tlC'!ls are not Issued within 120
calendar dsys after the gTantee's' re-
quest, the. ~ntee shall sell the prop.-
erty L'1d relmbursa the Federal siency
an amcunt computed by apply1.ng to the
Sales proceeds the percentage ot Federal
participation In l11e cost o! the original
proJi!Ct or program. ~o;oever. 0 the
grantee shall be permlt....ed "to deduct
and retain ~rom L'le Federal share $100
or ten per.:ent of the proceer'...s, ;ohlch-
e\.er Is ilTe....ter. for the i!'"l.ntee's sell-
L-;;; ar.d hS:1dU.."!i expen...<.es.
(b) If t1le ~:lnt..ee 1.5 :...~~:-..lC~ to
!-'''l!p t.~e ~:c;.crty e!..seo;;-he:-e t1".l.e ~n~ee
~~~..!1 be r...._'T1bu:-::<'d bJ t.'1e !>e.,(,~~,,!g
?-c-.:ernJ s.&er!c7 ,.-jt..'1 sn r.7.o\.:nt ;:;rJch
Is cO:mputcd byt\ppiylng the' percentage
ot die grlUltee participation In the cost
ot the onginal grant projector program
to the current !air macket value ot the
property, plus any reasonable shipping
or Interim stora<<e costs Incurred.
'(c) Utl1e-gj-antee IS Instructed to
otherwise dIspose ot the property, t..'le
grantee shan be .reimbursed by the Fed-
eral abency for such costs Incurred In
Its disposItion.
(d) Propertv manage:nent standarcU
lor n.onerpcndable propenll. The ~ant-
ee's property management standards for
nonexpendable personal property shall
Include the f(.'Jow1ng procedural require- 0
ments:
-- (i)'-Property records she.ll be maln-
tal."1ed accuro.tely and shall Include:
(a.) A descriptIon of the property.
'(b) M:anufacturer's ser'.al number.
model number, ~derai stock nwnbe:r,
national stock number, or other 1denti!1-
cation number,
(c) Sou.ce of the property lnclud1ng
grant or other agreement number.
(d) Whether tlUe vests In the grantee
or the Federal Government.
(e) Acquisition date (or date received.
It the property ~'llS furnished by the
Federal Government) and cost.
(f) Percentage (at the end of the
budget year) of Federal pa.rtlclpatlon In
the cost .:Jf the project or prOgTalD for
.s;hlch the property WILS acquired. (Not
a.pplicable to 'property furnl.s.hed by the
Federal Government.)
(g) LocatIon, use, and condition of
the property and the date '-he In,fonns.-
tIon wa.s reported.
(h) Unit acquisition coot.
(1) Ultl..:n&te dJspositi9n data, includ-
Ing date of disposal and saJes price or
the method used to determine current
fair marlcet'veJue where a grantee com-
pensates the Federal agency. for Its $ha.re.
(2) Property owned._ by the Federal
Government must be marlced to indi-
cate Federal ownership.
<3} A physical Inventory of propert.y
shall be taken and t..'1e results nx:oncUed
with the property records at least once
every t..o yesrs. Any dJ.!!erences t-et..een
quantities cetermlned b)' the physb\!
inspectlon and tho:;e sho..n in the ac-
counting re"'.An;1s sbaIll>e lnvestigated to
determine tne c.!!.uses of t..'1e difference.
The grsntee shill, 10 connection with the
Inventory, verify the existen~, current
uUllzation. and continued ne...""Ci for the
property.
(4) A control system shall be In etl'ect
to insure adeqU:l.te safeguards to prevent
loss. damage, or theft of the property.
Am loss. damage, or tlleft of nonex-
pendable property shell be Investigated
aDd fully doc=ented: It t..'1e property
'll;"as owned by the Federal Government.
the grantee sl".e.ll promptly notify the
Ft"d~:"!\.l ~e!1cy.
(5) ,"'d~uate rr:::.tr.t~n:;.nce proci'dures
shall be llnp:crr:cnt.ed to ~:eep the p.op-
e:tj~ ~-'1 good co~~t~on.
(6) \V!1ere the g:-a::tee ~ 2_"t:-:c,iized
or ~'J!red :.0 sell t..'1e Prrlp.<:rty, pro;:.er
s::Jes Pn:w:L~U:-CS sha.ll be ~WblLs..':e-::
..'~ic.l-t ":;0u.Id ;:o'..~...:e :0;' cO~0~!tion toO
I
09: 1551
IJDR RF-161
4-7-80
the ~tent pr:'lct.lcable lUld resuH In the
h1chest possIble return.
7. EZpend.able personal propcr-::;. Title
to expendr..ble V-)rsonal P<0iX.rt; shall
vest In the~tee upon acQulslthn. II
there I.s a. ~jdual Inveotory of web
property cxc~1ng $1,000 in tots..! a,:;gre-
ga.te. talr 0 market \'alue. upon te:mina-
tlOl:1 or completion o! the grant r.nd It
tlle property is not neOOed for any ot1ier
fedeT'll.llY spOnsored project or.prcgT'lUl1.
the grs.ntce shl'.ll retain the propefty for
use on nonfcderaUyspoosored adlvltles.
or sell It, but must In either ca...c.e, rom-
pe:::.sat.e the F-cde.ral Governmcn~ for its
share. The amount of compensl1.tio::ll::he.ll
..,ooe computed in the same l1lAuner ~
nonexpendable p~rsooal property.
a. Intan{}ible prDpertll.
(a.) Inventions and paten4. U any
prognun produces. plltent.?ble Items,
patel:1t rights, processes, or I:lY~Uons.
in the course of work spocso:-'ed by the
Federal Go\'crnment; such !.s..ct ~~,all be
promptly and fully report~ to t..,!e Fed-
eral &gency. Unless there I.s a prior agree-
ment between the grantee and tbe FPd-
e.--a.l agency on dIsposition of such items,
the Federal agency shall de~ermine
whether protectlol). on tlle Invent;on or
dls<:overy shall be sO).l.ght. The :~eral
a.gency w1lI a.lso JeterII1lne how t..':e rlo;hts
in the invention or dlscov:ery. !.Deluding
ri!;hts under any patent lssued thereon.
sho.ll be alloc I\.t.ed IUld o.d.min1s t.. -.:.ted In
order to protect the pubI.lc L.iter;ost con-
sistent with "Government Patent Follcy"
<President's Memorandum for Fie-"...ds or
~xecutive Departments ?Ild Al;encies,
August 23, 1971, and statement of Gov-
'ernment Patent Policy e.s printed 10 36
FR 10(89).
(b) Copyrights, Except e.s ot.':er.>ise
prOvided in U1e terms u:.d cond::':ons of
t..'le a...~ement the R.uthor or the ~"ltee
ore;lI.n1zatlon is free to coprnght P.Il.1
books. pUblicatJons, or oLI1er roP?rJght-
able materials developed In t.he co;m;e ot
or under a Federal agreement, !Jut tile
Federal agency shRll re:;en:e a t'OpJt7-
f.c~ nonexclusIve and l.rrevoce.b!e right
to reproduce, publish. or other..~se \lse,
and to authorize ot..'1ers to use.t..':e ',.ork
[or Government purposes.
9. Euess persona! p~op~~tv. W"hen
title to excess property is yc.:;tcd In 6"",.nl.-
ees such property shall be ~cour. ~ed for
Q.l1d dIsposed of In a.::-:o!'dance ""it,:": pera-
g72ph.3 6(c) and 6(d) of t.hLs ett..'l.C-':::-lent.
p'-:':)~~s:-.e.j ':.:1' 7;~E 3t";:\.:::":"t.; CF' :~A:-:C~~.~.:" AF?';::;:S, ISC.. ';"_;:;:-:~>C70S. :>.C. ::0.37
13
C.-II
4i874
I
I
.Feder~1 Register / Vol. 44. No. 159 / Wednesday. August 15. 1979 / Notices
OFFICE OF MANAGEMENT AN~
.BUDGET
[Circular No. A-l02, Re'iised; Transmittal
Memorandum No.1 J
Standards Governing Slate and Local
Grantee Procurement, Attachment 0
of OMB Circular A-102
Aug.,;! 1. 1979.
To heads of Executive Departments
<.Ind Establishments
1. Purpose: This Memorandum
trans<:1:ts an amendment (revised
Attachment 0) to Office of ~lanagement
and Budget (O~IB) Circular A-102.
. 2. Background: This notice, pursuant
to the authority of Pub. L. 93-400. the
Office of Federal Procurement Policy
Act and the Intergovernmental
Coooeration Act. amends Attachment 0
to o\m Circular A-102 issued
September 12. 19i7. Federal Register,
Vol. 42. No. 176. page 45828. The
proposed revision was circulated to
Sta te and local interest groups in
accordance with Circular A-,95
procedures and Executive Order 12044
and to affected Federal agencies and
cont:3c~or organizations. The proposed
revision WilS published in the Federal
Register December 6. 1978. Vol. 43, No-'
235, page 57201. and a public hearing
was held January 16. 1979. ~o regulatory
analysis is required in accordance with
Executive Order 12044. The amendment
(1) reaffirms the maximum relianc~ on
Sta te and local government grantres
man:Jilement of their own procurement;
(21 dirpr~~ \lrantor a.!i!encip~ tnrescind
n/ln.~!"'nt"rmlll~ !lrl""~lf'"q nf c,.,.,.gnl
il!!erCV Sub(\rrlinale reeUldlIU"" anc
IIml" 'n" '<~,,~n,.,> c,r additionai
rp'1'l'r~ml:'r,I,,; lJj crt:iltes a grd...~e
r;prt;f:::::ll!.)n orc";!ram to n'!uuce the
gra I. :~e :l3=nc:C's uuft..Jcnsome pre.
a\\a-J r~vie\'i of ir.diddui-ll
proc~:~'TI~nts: (4) JdJs provisions to
reJ:.;.:e tl:e possibtlity of fraud and
\....2::::.-:. ~~~d (S] cxp:lnds ccve!'agc
.daJ:-::~S;~~g smJU. inino~ity. \Vo~!en and
labor ;'.;r;;lus ccntracting. The
a~e~:::~ent. it lS anticipated. will reduce
adrT!:nistrati\'e cost. paperwork and
other such factors which contributed to
inpr::Lie:lcy. waste and delay in
im(e::1e:1.ing 2ssista;'tce programs.
3. Actien: Remove the old Attachment
o fn:.i!1 the CirCIJ!dr and insert the new
Attolc:-:ment. Grantor asencies shall
begin immediately to amend
;'tor.:o.-.forming subordi:1a te regula tior.s.
4. S:;::::nc:-y 0/ ChuJ:6'es: Section 1.
Fro::::.ts ~rantor Jgencies from RdJir.g
adc:t::;ndJ requirements or su!Jo:cinate
reg:.;la::ons. This attachment strikes a
balance betwppn a'lencies' stewardship
rOle ano lllb pOlicy 01 f"a<,utg 'lie
melximum reliance on grantees to
conduct their own affairs. To avoid
confusion, areas not covered by this
prohibition are enumerated~
Section 2. Spelis out the
responsibilities that properly belong to
the grantor or the grantee. To avoid
burdensome detailed reviews of
grantees' discretionary actions the
substitution of grantors' judgment is
prohibited. unless it is primarily a
Federal question.
Section 3. Grantor agencies are
encouraged to provide technical
assistance to grantees rather than
require submission for review.
Section 4. Proposes that grantor
agencies conduct grantee procurement
system reviews and that when a grantee
procurement system meets the
standards of this attachment it may be
certified by the grantor agencies. thus
reducing individual pre-award contract
reviews by that agency or other
agencies making grants. Both grantees
and grantors expressed their concern
about keeping the quality of the
certification reviews constant. A
paragraph was added to make reviews
adhere to OFPP standards.
Section '5, Limits grantor agencies'
authority to re,..iew protests. This is
properly the responsibility of the
grantee.
Section 6. Urn: ts grantor pre-award
review of grantee procurements to non-
comp~titive and brand name
procurements. and procurements by
grantees who do not meet Attachment 0
standards.
Section 7. Expands the code of
conduct from mere!y prohibiting the
acceptance of gifts and gratuities to
prohibiting t~e ;Jarticipation in the
award of C('r.~rJcts to firms in which the
employee has some financi;J I interest.
Section 9. E...panJs the section
requiring affiror:stive steps to ensure
minority and sma!! business
partici"aticn in contr:lcting under
Federal grant pr'Jgnn:s. and encourag!:!s
the placemel:t of coetracts in iaeor
surplus areas and with women business
enterprises.
Section 11. Explains when it is
appropria te to use one of the follo\\ ing
four methodsa of procurcme:l.l. s:r.all
purchase. competitive scaled bids.
competitive negotiations. and
noncompetith'e negotiations. and
reccgnizes prIce competition need not
be used for AlE contracts.
Seoction 12. Prohibits the use of a
percentage of construction cost method
of contracting. requires either a cost or
price ar.aiysis of all procurement. and
c - / z....
states costs will be allowed if consistent
with Federal cost principles.
Section HG. Expa:lds contract
provisiun on inventions tu cover
copyrights and rights in oata. .
Section HJ. Add's provision requiring
compliance with State Energy
Conservation Plans.
5. Effective Date: This revision is
effective October 1. 1979. Grantees may
comply with this amendment
immediately where they do not conflict
with grantor agency resulatiof}s. Graetor
agencies may implement this
amendment immediately or allow
grantee agencies to implement.
6. For Furthe:- Information Contact:
Mr. Jack ~adol. Assistant for
Intergovernmental Affairs. Oifice of
Federal Procurement Policy. Telephone
202-395-6166.
James T. McIntyre. Jr.,
Director.
Procurement Standards
1. Applicability.
a. This Attachment establishes
standards and guidelines for the
procurement of supplies. equipment.
construction. and services for Federal
assistance programs. These standards
are furnished to p.nsure thelt such
materials and services are obtained
efficiently and economically and in
compliance with the provisions of
applicable Federalla IV and Executive
orders.
b. No additional procurement
requirements or subordinate regulatior.s
shall be imposed u;Jon grelntee~ by
Executive agencies un!essspecificidly
required by Feccrallaw or Executi'.e
orders or authorized by the
Administr:1tor for Federal Procurement
Policy. This prohibition is not apP!:c<ible
to payment conditior., iss\Jed in
accoruance with Tre:!sury CirLU',j,10;-S.
indi'.idt.::1! g;'antce rp.qciremencs
pursuant to section 10 of the basic
circular or the pro~':s:ons of this or ot;;"r
o~m circulars.
c. Provisions Jf current subor:i'r'..J!e
requirement~ not corforming to this
attac~:!:ent sha!. be resrinJed bv
.5ran~or agencies ~n12S3 apP;uvE.d 0! ~~.c
Office of Federal Frocurement PoLey
(Oi-'fJP).
z. GrC;;ll!e/C,-ar:to:- Res='Kls:''Yi/it;,
a. These standard.< rin "'n. -olin.oo'tho>
gran!~e of ~nv ~nr.!r:1r.tn"ll
resor:flC......'...O~ ll,.rlpr Irs cc:~..........tc;.. the
gr.,n".p I.~ --.nnno'hle. in acconJance
With good aaml:11strative pra-:t:ce dr:J
sound business judgment. for tl:e
settJeme:1t of all contr3etual and
aC::1:.,istr3!:'..e iS3~CS a::s:r:g out of
procure::::ents entered into in suppo:t of
a grar.t. These i:1cil.:.:e but are ;'tot
.
,
I
I
Federal Register / Vol. H. 7'-:0. 159 I Wednesday. August 15, 1979 / Notices
,
-17375
limited to: ~ource eValuation. protests,
disputes. and claims. Executive agencies
shall not substitute their judgment for
that of the grantee unless the mailer is
primarily a Federal concern. Violations
of law are to be referred to the local.
State, or Federal authority having proper
jurisdiction.
b. Gralltees shall use their own
procurement procedures which reflect
applicable State and \ocallaws and
regulations. provided that procurements
for Federal Assistanr:e Programs
conform to the standards set forth in this
attachment and applicable Federal law.
3. Grantee Procurementlmpro.'ement.
Executive agencies awarding Federal
grants or other assistance which require
or allow for procurement by the
recipients are encouraged to assist
recipients in improving their
procurement capabilities by providing
them with technical assistance, training,
publications, and other aid.
4. P;ocurement System Ren'ews.
a. E;l(ecutive agencies are encouraged
to perform reviews of their grantees'
procurement systems if a continuing
relationship with the grantee is
ai1ticipated or a substantial amount of
the Federal assistance is to be used for
procurement and review of individual
contracts is anticipated. The purpose of
the review shall be to determine: (1)
whether a grantee's procurement system
meets the standards prescribed by this
Attachment or othercriteria acceptable
to the OFP? sllch as provisions of the
model procurement code for State and
local government and (2) whether the
grantee's procurcment system should be
certified by the reviewing agency. Such
a review will also gi\'e an age:1cy an
opportunity to give technical assistance
to a grantee to remedy its procurement
system if it does n.ot fu:Jy comply. In
addition. such a review may provide a
basis for deciding whe~!1~r t~e grantee's
contracts and related procurement
documents should be subject to the
grantor's prior approval. as pro\ ided by
S~ction 6.
b. In concucting procure!':':ent system
reviews, grantor agencies will e\abate
a grantee's procurement system in terms
of whether it co!':':pHes with the
standards prescribed by this
:\!tachm~nt and represc:1ts a fair.
efficient and effective procurement
system. To the maximum extent
feasible, re\'iewe:s will rely upon State
or local evalua!icns and analvses
pc.::-forrr:ed :y d~e;.c~es 0r o:s~niz3 !ions
indept:~cc:1! of ~~e gra;"l.~ce contra::!ing
ac:i\ity.
c. \V~e:1 a Fccc:-al g:-2~:or age:1CY
cc~;:,letes a ~~oc!J;-;;~e;:t re,"ic\\', it shall
furnish a report to the grantee. with a
copy to OFPP.
d. All agencies should'normally rdy
upon the resultant findings or
certification for a period of 2'; months
before another review is performed.
e. Reviews shall be cpnducted in
accordance with standards and
guidc!ii1es approved or issued by OFPP.
f. The reviews authorized by Section 6
arc waived if a grantee's proct:rement
system is certified.
5. Pm/est ProcediJres.
Grantor agencies may develop an
administrative procedure to handle
complaints or protests rpgilrding grantee
contractor selection actions. The
procedure shall be limited as follows:
a. No protest shall be accepted by the
grantor agency until all administrative
remedies at the grantee level have been
exhausted.
b. Review is limited to:
(i) Violations of Federal law or
regula tions. Viola lions of Sta te or local
la w shall be under the jurisdiction of
State or local authorities.
(ii) Violations of grantee's protest
procedures or failure to review a
complaint or protest.
6. Grantor Rel'iew oj Proposed
Contracts.
Federal grantor pre-award review and
approval of the grantee's proposed
contracts and related procurement
documents. such as requests for
proposals and invitations fM hids. is
pt:unHtea onlY unoer L'le foilowlng
circums tances:
a. The procurement is expected to
exceed ",,, fYV) and is to be awarded
with.,,,. rr'l.....,ptltion or only one bid or
oller IS received In response to
solici til tion. .
b. The procurement expectcd to
exceed "11'\ 11110 ~npciiks a "b~and name"
product: or
c. T~e grantee's procu:'e~ent
procedClres or operation fa:!s to co;np!y
with one or more signif:caflt aspect3 of
this .'\tt<<chr::cnt. The g~;;;.tor <lgcncy
s!1al! nc~ify ~he grar!!ee i~ \.":":~::'.g. \vilh a
cOilY of S\!C~ :iGtifica!;on to the OFPP,
7". C....h....'e of Co:,!d~'ct.
Grantees'shall maintain a written
code or standards of concClct w::ich
shall govern th.e ;:erformance of their
officers. e;:-:"Ioyees or <ll;enls enga;ed in
the award aud administration of
contracts s<:;:ported by Federal f;:nds.
~o employee. officer or agent of the
grantee shall participate in selection. or
in the award or ad:7li:1istration of a .
c:Jntract s;:;:por:ec :y Fece~31 :,;::os if 3
COl":fl:ct cf ;n~2iC3~. real or iii'parent.
\v0l.:~d be i::";o!\'ed. s:.:c~ a c::--:::i:t
'~'''c~~d 3::se \\'~en:
a. T:--:e c:7l;;loyee. of::cer ~:- ag~r:t:
C -/3
b. /\ny memuer of his immediate
filmily:
c. His or her partner: or
d. An organization wLich employs, or
is about to employ. any of the uJO\e.
has a financial or other interest in the
firm selected for aw<<rd.
The grantee's officers. employees or
agents shall neither solicit nor accept
gratuities. favors or anything of
monetary value from contI actors,
potential contractors. or parties to
subagreements.
Grantees may set minimum rules
where the financial interest is not
substantial or the gift is an unsolicited
item of nominal intrinsic value.
To the extend permitted by State or
local law or regulations, such standards
of conduct shall provide for peniilties.
sanctions, or other disciplinary actions
for violations of such stand:1fds by the
grantee's officers. empluyees. or agents.
or by contractors or their agents.
8. ProcurlJmen/ Procedures.
T~c grantee sh<l!l establish
procurement procedures which pro\ide
that proposed procurement actions shall
be reviewed by g~an~ee officials to
avoid t!1e purchase of unnecessary or
duplicative items. Consideration should
be given to consolida tion or breaking
out to obtain a more economical
purchase. \Vhcre appropria te, an
analysis shall be made of lease versus
purchase alterna tives, <lnd on:: nthp.r
<lppropriale analysis !o deterT71ir:e which
approach \\ ctdd be the m03t
ecorlOmical. To. foster g~ea ter cro:-:omv
and efficiency g~antees il~e cnc;j'';"lgc"d
to enter into Stute a:-:d lucal
intergovernmental agreements for
procurement or use of common gauds
and services.
9. Con/;ccti!1!; tV;ill Sn'n// and
,\finori!}' Firms. ~t"O!:1(,."1'S .rl:,";/r(>s~
Enferprise a..:d L::!;or S~'."'p/:..:~: .-L-~'o
f:.-ms.
a. It is r.ational policy to 8\\'ilrd <l f;,ir
s~are of contracts to 5~u!! 3n~_~;;,.Lrity
b~s::-:e~s fl::-:1~. :\C:C...Ci......g:y. a::;r~(1~!\.c
s~eps ::-:ust be !:1k.en ~o a.)s~~!"e ~h.:~ :'-::J!l
3:iC :-;,:i:'lc:-ity tH..!sir.~-;ses ar~ ~:~;:;~t.::j
\'.!1en ~os:;ible as 50U:r:P.S of s'~prL's.
eqt;;;:::lE'nt. CCir.s~~ut:ticr: Jnd sCf\'i:e3.
Affirmative ste~s sh"lJ ir:cl~~e tha
fnllowing: .
(1) lr,c~uding q'Ja!if:ed s:-:-,<l:~ 3nd
m;nority businesses 0:1 seJiri!a::cn 1:~'5.
(~) Assuri:1g that sm::!il ar.d :::;r.or:tv
bl.'sinesses are solicitec \\::er.ev<:c t':;y
are potc;.tial sources.
(:) 1,V:-:~:: eC'J:1o~~CJ::Y :e:Jsi:::;e.
c:\"}d::1g total i(",q-...:::-e~r!;~s :nlo s:::a::er
t.:.S:od cr li;.:ant:.:it~S ~o as tJJ'l~;-~jt
:::::.,.:::i..':71 s;nad a:.G [":".1::0:: ty C'-ls.r.css
::a:-:;::~3 ~ion.
478i6
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I
Federal Regisler / Vol. 44. No. 159 / Wednesday, August 15, 1979 / Notices
(4) Where the requirement permits,
establishing delivery schedules which
will encourage participation by small
and minority business.
(5) Using the services and assistance
of the Small Business Administration,
the Office of Minority Business
Enterprise of the Department of
Commerce and the Community Services
Administration as required.
(6) If any subcontracts are 10 be let,
requiring the prime contractor to take
the affirmative steps in 1 through 5
above.
b. Grantees shall take similar
appropriate affirmative action in support
of women's business enterprises.
c. Grantees are encouraged to procure
goods and services from labor surplus
areas.
d. Grantor agencies may impose
additional regulations and requirements
in the forp.going areas only 10 the extent
specifically mandated by statute or
presidential direction.
10. Selection Procedures.
a. All procurement transactions,
regardless of whether by sealed bids or
by negotiation and without regard to
. dollar value, shall be conducted in a
manner that provides maximum open
and free competition consistent with this
attachment. Procurement procedures
shall not restrict or eliminate
competition. Examples of what is
considered to be restrictive of
competition include. but are not limited
to: (1) placing unreasonable
requirements on firms in order for them
to qualify to do business, (2)
noncompetitive practices between firms
(3) organizational conflicts of interest,
and (~J unnecessary experience and
bondi::g requirements.
b. The grantee shall have written
selec:ion procedures which shall
pro\'ice. as a minimum. the following
procec'-lra I requirements:
(1) Solicitations of offers, whether by
corr.;:=~iti\'e sealed bids or competitive
negot:ation. shail:
(a) incorporate a clear and accurate
desc:;:~ion of the technical
require'-1ents for the material. product,
or ser..ice to be procured. Such
descri;:tion shall not. in competitive
procurements. contain features which
unduly restrict competition. The
descr:;:tion may include a statement of
the qua!i!ati\'e nature of the material.
product or ser'iice to be procured, and
when r.ecessary, shall set forth those
minim:.;:n essential characteristics and
standards to which it must conform if it
is to sa~:sfy its intc:1ded use. Detailed
prod:.:ct specifications should be
avoided if at all possible. When it is
impra :::ca1 or u:1economical to :nake a
clear and aCC.lrate description of the
technical requirements, a "brand name
or equal" description may be used as a
means to define the performance or
other salient requirements of a
procurement. The specific features of the
named brand which must be met by
offerors shall be clearly stated.
(b) clearly set forth all requirements
which offerors must fulfill and all other
factors to be used in evaluating bids or
proposals.
(2) Awards shall be made only to
responsible contractors thaI possess the
potential ability to perform successfully
under the terms and conditions of a
proposed procurement. Considera tion
shall be given to such matters as
contractor integrity, compliance with
public policy. record of past
performance. and financial and
technical resources.
11. Method of Procurement.
Procurement under grants shall be
made by one of the following methods,
as described herein; a] small purchase
procedures; b) competitive sealed bids
(formal advertising); c] competitive
negotiation: d) noncompetitive
negotiation.
a. Small purchase procedures are
those relatively simple and informal
procurement methods that are sound
and appropriate for a procurement of
services, supplies or other property,
costing in the aggregate not more than
$10.000. Grantees shaJi comply with
State or local small purchase dollar
limits under 510.000. If small purchase
procedures are used for a procurement
under a grant. price or rate quotations
shall be obtained from an adequate
number of qualified sources.
b. In competitive sealed bids (formal
advertising], sealed bids are publicly
solicited and a firm-fix ed-price contract
(lump sum or unit price) is awarded to
the responsible bidder whose bid,
conforming with all the material terms
and conditions of the invitation for bids.
is lowest in price.
(1) In order for formal advertising to
be feasible, appropriate conditions must
be present, including, as a minimum, the
following:
(al A complete. adequate and realistic
specifica tion or purchase description is
available.
(b) Two or more responsible supplie:s
are willing and able to compete
effectively [or the grantee's business.
(c) The pi-oc~rer.:ent lends itself to a
firm-rhed-price contract. and selection
of the success:'~! bidder can
appropriately be made principally on
the basis or price.
c - ,lj
(2J If formal advertising is used for a
procurement under a grant, the following
requirements shall apply:
(al A sufficient time prior to the date
set for opening of bids, bids shall be
solicited from an adequate number of
known suppliers. In addition, the
invitation shall be publicly advertised.
(b) The invitation for bids, including
specifications and pertinent
attachments, shall clearly define the
items or services needed in order for the
bidders to properly respond to the
invitation.
(c) All bids shall be opened publicly
at the time and place stated in.the
invitation for bids.
(d) A firm-fixed-price contract award
shall be made by written notice to that
responsible bidder whose bid,
conforming to the invitation for bids, is
lowest. Where specified in the bidding
documents, factors such as discounts,
transportation costs and life cycle costs
shall be considered in determining
which bid is lowest. Payment discounts
may only be used 10 determine low bid
when prior experience of the Grantee
indicates that such discounts are
generally taken.
(e) Any or all bids may be rejected
when there are sound documented
business reasons in the best interest of
the program.
c.ln competitive negotiatIon.
proposals are requested from a number
of sources and the Request for Proposal
is publicized, negotiations a:e normally
conducted with more than one of the
sources submitting offers. and either a
fixed-price or cost-reimbursable type
contract is awarded, as appropriate.
Competitive negotia tion may be used if
conditions are not appropriate for the
use of formal advertising. If Corr.petiti\e
negotiation is used for a procurement
under a grant, the following
requirements shall apply:
(1) Proposals shall be sol:cited fro!'71
an adequate number of qualified sources
to permit reasonable competition
consistent \\ith the nature and
requirements of the procurement. The
Req~est for Poposals shOlII be publiCized
and reasonable requests by other
sources to compete shall be honored to
the maximum extent practicable,
(2) The request for proposal shall
identify all significant evaluation
factors, including price or cost whe:e
required and Uleir relative importance.
(3) The grantee shall provide
mechanisms [or technical e\aJuatic:J cf
the ;;roposOl!s received. Jl:termin.l::cns
or responsible offerors [or the purpose cf
wntten or oral discussions, and
selection [or ccn::Clct al'.did.
" .
I
I
Federal Register / Va\. 44, No. 1S9 / Wednesday, Augusl 15, 1979 / Notices
';7877
(4) Award may be made to the
responsible offeror whose proposal will
be most adavantageous to the procuring
party. price and other factors
considered. Unsuccessful offerors
should be notified promptly.
(5) Grantees may utilize competitive
negotiation procedures for procurement
of Architectural/Engineering
professional services, whereby
competitors' qualifications are
evaluated and the most qualified
competitor is selected, subject to
nf'gotiation of fair and reasonable
compensa tion.
d. ~oncompetitive negotiation is
procurement through soliciation of a
proposal from only one source, or after
solicitation of a number of sources.
competition is determined inadequate.
Noncompetitive negotiation may be
used when the award of a contract is
infeasible under small purchase,
competitive bidding (formal advertising)
or competitive negotiation procedures.
Circumstances under which a contract
may be awarded by noncompetitive
negotiation are limited to the following:
(1) The item is available only from a
single source;
(2) Public exigency or emergency
when the ur.gency for the requirement
will not permit a delay incident to
competitive soliciation;
(3) The Federal grantor agency
authorizes noncompetitive negotation;
or
(4) After solicitation of a number of
sources. competition is determined
inadequate.
e. Additional innovative procurement
methods mav be used bv Grantees with
the approvai of the Grantor Agency. A
copy of such approval shall be sent to
OFPP.
12. COrl/ract Pricing.
The cost plus a percentage of cost and
percer.tage of construction cost method
of contracting shall not be used.
Grantees shall perform some form of
cost or price analysis in connection with
every procurer.;ent action including
contract modifications. Costs or prices
based on estimated costs for contracts
under grants shall be allowed only to
the extent that costs incurred or cost
estimates included in negotiated prices
are consistent with Federal cost
principles.
13. Grantee P:ccurement Records.
Grantees shall maintain records
sufficient to detail the significant history
0: a procure~en:' These records shall
inc'cc!', !:Jut are ~ot necessarlly !i~ited
to. information e;~;:d~~!:O t!":e
f,)!lowir.g: i'iltio aie for ~he rr:e'hod of
proc:.lJe!7!cr.t. $2 ~c:il.Jn of :or.t~~.:t :y;:,e.
contractor selection or rejection, and the
basis for the cost or price.
14. Contract Provisions.
In addition to provisions defining a
sound and complete procurement
contract. any recipient of Federal granl
funds shall include the following
contract provisions or conditions in all
procurement contracts and subcontracts
as required by the provision. Federal
Law or the Grantor Agency.
a. Contracts other than small
purchases shall col'ltain provisions or
conditions which will allow for
administrative, contractu31. or legal
remedies in instances where contractors
violate or breach contract terms, and
provide for such sanctions and penalties
as may be appropriate,
b. All contracts in excess of $10.000
shall contain suitable provisions for
termination by the grantee including the
manner by which it will be effected and
the basis for settlement. In addition,
such contracts shall describe conditions
under which the contract may be
terminated for default as well as
conditions where the contract may be
terminated because of circumstances
beyond the control of the contractor.
c. All contracts awarded in excess of
$10.000 by grantees and their
contractors or subgrantees shall contain
a provision requiring compliance with
Executive Order 11246, entitled "Equal
Employment Opportunity," as amended
by E;o::ecuti~'e Order 11375, and as
supplemented in Department of Labor
regulations (41 CFR Part 60).
d. All contracts and subgrants for
construction or repair shall include a
provision for compliance with the
Copeland "Anti-Kickback" Act (18 L'SC
874) as supplemented in Department of
Labor regulations (29 CFR. Part 3). This
Act provides that each contractor or
subgrantee shall be prohibited from
i:1ducing. by any means. any person
employed in the construction,
completion. or repair of public work. to
gi\'e up any part of the compensation to
which he is otherwise entitled. The
grantee sha:1 i'eport all suspec~()d or
reported viulations to the grantor
agency.
e. When required by the Federal grant
program legislation. all c::mstruction
contracts in excess of 52.000 awarded
by grantees and subgra:1tees shall
include a provisicn for compliance with
the Davis-Bacon Act (40 USC 275a to a-
n as supplemented by Department of
La:or reg'Jlations (:9 CFK Part 5), L':1der
this Act :::-:tractors s::all !:le recuired to
pay wa6!;s to !a:,crei's and rr.ec~:!:::cs at
1 ~Q~e ~IJt l€'ss ~r:n:-: :~e ::::!'1i~:..:n \\"3ges
spec:::ed :~ 3 \\"a~e ce~cr:-:iina!ior. :::a-:e
:,y t~e Secre'':::y;C labor, b ::..:c::t:on.
/'
C - I ~
contractors shall be required to pay
wages not less often than once a week.
The grantee shall place a copy of L,e
current prevailing wage determina tion
issued by the Department of Labor in
each solicitation and the award of a
contract shall be conditioned upon the
acceptan<;e of the wage determination.
The grantee shall report all suspected or
reported violations to the grantor
agency.
f. \"/here applicable. all contracts
awarded by grantees and subgrantees in
excess of 52,000 for construction
contracts and in excess of 52,500 for
other contracts which involve the
employment of mechanics or laborers
shall include a provision for comp!:ance
with sections 103 and 107 of the
Contract Work Hours and Safety
Standards Act (40 USC 327-330) as
supplemented by Department of Labor
regulations (29 CFR, Part 5). Under
section 103 of the Act. each contractor
shall be required to compute the wages
of every mechanic and laborer on :',e
basis of a standard work day of 8 :-.ours
and a standard work week of 40 hours.
Work in excess of the standard wo:;;day
or workweek is permissible provided
that the worker is compensated at a rate
of not less than 1 Vz times the basic rate
of pay for all hours worked in excess of
8 hours in any calendar day or 40 hours
in the work week. Section 107 of the Act
is applicable to construction work and
provides that no laborer or mechanic
shall be required to work in
surroundings or under working
conditions which are unsanitary.
hazardous. or dangerous to his nealth
and safety as determined under
construction, safety and health
standards promulgated by the Secretary
of Labor. These requirements do ;lOt .
apply to the purchases of supplIes or
materials or articles ordinariI\' ovai:able
on the open market. or contra~ts for
transportation or transmission of
ir.te!ligence.
g. The contract shall include ~olice of
grantor agency require:-nents and
regulations pertai:-:i:-:g to :epor!:~; cild
patent rights under anv ccntract
involving research. de~'eiop~er;tal.
experimental or demonstration work
with respect to any disco\e:y or
invention which ai':ses or :s:e..e!o:ed
in the course of or unci er suc~ con t;a ct.
and of grantor agency require",ents and
regulations pertaining to c;)pyrig~ts and
righ ts in da ta.
h. All :1egotiated co~traC:5 ~exc~:lt
those awarded by sma!! ?~i'cha3es'
;Ji'oce~~;i'es) aWdL:~d by ;::n'ces s~all
~;:r.!uae a prc"':sion ;J the ~r":cct that :~e
g:'ar.~ee. ~~e Federal gr-.1:-:~or ,1::;~:iCY. ::-:e
CC:7:;:~rci:c~ Ce:"'.e:-2i cf ::-:e l'j1:ted
.
.
, C011;"IUNITY DEVE!OPI\lENT BLOCK GRANTS
States. or any of their duly authorized
representatives. shall hove access 10
any books. documents. papers. and
records of Ihe contractor which are
directly pertinent to thaI specific
contract, for the purpose of making
audit, examination, excerpts, and
transcriptions.
Grantces shall require contractors to
maintain all required records for Ihree
years after grantees make final
payments and all other pending matters
are closed.
i. Contracts, subcontracts. and
subgrants of amounts in excess of
$100.000 shaJI contain a provision which
requires compliance with all applicable
standards. orders, or requirements
issued undcr Section 306 of the Clean
Air Act (42 U.S.C. 1857(h)J, Section 508
of the Clean \Vater Act (33 U.S.C. 1368),
Executive Order 11738. and
Environmental Protection agency
regulations (40 CFR Part 15 ). which
prohibit the use under non-exempt
Federal contracts, grants or loans of
facilities included on the EPA List of
Viola ting Facili ties. The provision shall
require reporting of violations to the
grantor age:1cy and to the U.S.E.P.A.
Assistant Administra tor for
Enforcement (EN-3Z9).
j. Contracts shall recog~ize mandatory
standards and policies relating to energy
efficiency which are contained in the
State energy conservation plan issued in
compliance with the Energy Policy and
Conservation Act (p.L 94-163).
Grantor Agencies are permitted to
require chonges. remedies, changed
conditions. scce.'s and record retention
and suspension of work clauses
approved by the Office of Fedcral
Procurement Policy.
15. Contract Administ.-ation.
Grantees shall maintain a contracl
administration system insuring that
contractors perform in JCl;OrCance with
the terms. conditions. and specifications
of their controcts or purchase orders.
[n 0",- :"9-:..s:.::u Fd~d 8-14-79; !_.-s .ml
SllLIN" CODE J 11~ 1-"
?~:::c":<-d :y
Attachment P-:Audit Requirements
rRcplaccs Paragraph 2h, .~.tt<l..:hment G]
1. This Attachment eslablishes audil
requirements for State and local
govemmenls, and Indian tribal
governments that receive Federal
assistance. It provides for independent
audits of financial operations, including
compliance wilh certain provisions of
Federal law and regulation. The
M!~uirements are established to insue
that audits are made on an organization-
wide basis. rather than on a grant-by-
grant basis. Such audits are to
determine whether (a) financial
operations are conducted properly, (b)
the financial statements are presented
fairly, (c) the organization has complied
with laws and regulations affecting the
expenditure of Federal funds, (d)
internal procedures have been
established to meet the objectives of
federally assisted programs, and (el
financial reports to the Federal
Government contain accurate and
reliable information. Except where
specifically required by law, no
additional requirements for audit will be
imposed unless approved by the Office
of ~fanagement and Budget.
2. Definitions: "Cognizant agency"
means the Federal agency that is
assigned audit responsibility for a
particular recipient organization by the
Office of Management and Budget.
"Recipient organization" means a
State department, a local government.
an Indian tribal government, or a
subdivision of such entities, that
receives Federal assis:ance. It does not
include State and local institutions of
higher educa tion or hospitals, which are
covered by Circular A-I10.
3. Slate and local governments and
Indian tribal governments sha!! use Lieir
own procedures to arrange for
ir..dependeot audits. and to prescribe Jh.~
scope of audits, provided that the audits
cO:r!ply with Lie requirements set forth
below. Where contracts are awarded for
audit services, the contracts shall
include a reference to this At~;;c~~ent.
4. The provisions of this AtI3C~r:1ent
do :,,;at limit the aut!:ority of Federal
agencies to :nake aucits of :e'.::~,ient
c:-~~:1::':'': ~:c~s. !{o\\'ever. if ;r.dc;:e:1ce~t
a:lci!s ar.ar.~ed for 1;)' rec:;:'c:1IS meet
~!;e :eqt!~ie~C:l:s p:escr::ed be!::""" aU
I
09: 1555
IIOR RF-161
4-7-80
Federal agcncies shall rely on them. and
any additional audil work shall build
upon the work already done, . :'
.5. Audits shall be made in accotd~nce
with the Genersl Accounting Office
Standards for Audit of Governmental
Organizations. Programs. Activities &
Functions. the Guidelines far Financial
and Compliance Audits af Federally
Assisted Programs. any compliance
supplements approved by OMB. and
generally accept~ auditing standards
established by the American Institule of
Certified Public Accountants.
6. Audits will include. at a minimum,
an examination of the systems of
Internal control, systems established to
ensure compliance with laws and
regulations affecting the expenditu.-a of
Federal funds. financiallransactions
and accounts. and financial statements
and reports of recipienl organiza lions,
These examina tions are to deterCline
whether:
a. There is effective control over and
proper accounting for revenues,
expenditures, assets. and liabilities.
b. The financial statements are
presented fairly in accordance with
generally accepted accounting
principles,
c. The Federal financial reports
(including Financial Sta tus Reports,
Cash Reports, and claims for advances
and reimbursements) contain accurate
and reliable financfal data; and are
presented in accordance with the te.ms
of applicable agreements. and in
accordance with Attachment H of Gus
Circular,
d. Federal funds are beir.g expe:1ced
in accordance with the terms of
applicable agreements and those
provisions of Federal law or re~J!a~:ons
that could have a material effect on the
financial statements or on the.awa:cs
tested.
7. In order to accomplfsh thepur;oses
set forth above. a representative nU_-:1ber
of charges to Federal awards sha,l be
tested. The test shall be repjese:1:ative
of (1) the universe oi Federal aware.., .
received, and (2) all cost categories ~hat
materially affect the award. ne test is
to determine whether the c::a.ses:
a. Are necessary and reasonable for
the proper administratic:1 of the
pros.~a!l1~
b. Conform to any lir::ita!:o:1s or
exclusions in the award.
c. \Vere given consistent accou;:t'r:g
tr~atii"lent and ap;::!:ed u:1irQ!,,~!Y ~o :oth
federally 'lssisted 2nd ot~er 2c:i"'l:i~s oi
the recipient.
d. 'I~/e!"e :":et cf (l;;;~:c~:.;:e c:-ec:~3.
e, Did ;-:ot inc!:,Jde C:JS~S ;:~:;perly
c~a!"'S~oo!e ~o ct~er fece::=:Jy d:s:s::;d
pro&:ams.
C -/~
3'_' ~ 0:."':'; CoF :-;,.; 7IC:" A L A:=:=.'" IRS, :.-; C...' .', S;.: j';r:, TO:'.'. D, C, ::037
17
, . 09: 1;)56
f. Were properly recorded (i.e.. correct
amount. date) and supported by source
dOC1.l1Tlen ta tion.
g. Were approved in adv_ance, if
subject to prior approval in accordance
with Circular 74-4.
b,Were incurred in accordance with
competitive purchasing procedures. if
covered by Attachment 0 of this
Circular.
I, Were allocated equitably 10
benefiting activities, irtcIudingnon.
Federal a.:t1vilies.
B. Audits usually will be made
an;:ually, but not less frequently than
every two years.
9. If the auditor becomes aware of
Irregularities In the recipient
organization, the auditor shall promptly
notify the cognizant agency and
recipient management officials above
the level of involvement. Irregularities
include such matters as conflicts of
interest, falsification of records or
rl!ports, and misappropriation of funds
or 0 ther assets.
10. The audit report shall include:
a. Financial statements, including
footnotes, of the recipienl organization,
b. The auditors' comments on the
fina::cial statements which should:
(1) Identify the statements examined,
and the period covered.
(2) Identify the various prcgrams
unc<lr which the organization received
Federal funds, and the amount of the
awards received.
(3) State that the audit was done in
accc:dance with the standards in
paragraph 5.
(';) Express an opinion as to whether
the Mancial statements are fairly
presante~ in accordance with generally
acce;J[ed accountIng principles. If an
un~~alifiad opinion 'Cannot be
ex~:essed. state the nature of the
qua::fication.
Co The auditors' comments on
co:-::;:!iance and internal control which
shc.:d:
I
I .
HOUSING & DEVELOPMENT REPORTER
(1) Include comments on weaknesses
in and noncompliance with the lIystems
of inlernal control, separately
identifying material weaknesses.
(2) Identify the nature and impact of
any noted instances of noncompliance
with the terms of agreements and lhose
provisions of Federal law or regulations
thaI could. have a material effect on the
('mancial statements and reports,
(3) Contain an expression of pQsitive
assurance with respect to compliance
with requirements for tested items, and
negative assurance for untested items.
d. Comments on the accuracy and
completeness of financial reports and
claims (or advances or reimbursement
to Federal agen(;ies,
l!. Comment. on corrective action
taken or planned by the recipient
11. Work papers and reports ahal1 be
retained (or a minimum of three years
from the date of the lutdit report unless
the audilor is notified in writing by the
cognixar.t agency of the need 10 extend
the retention period. The audit
workpapers.haU be ma~ available
upon request to the cognizant agency or
Its designees and the General
Accounting Office or its designees.
12. The Office of Management and
Budget will work with Federal agencies
and Slate and local governments to
assure thaI recipient audits are made in
accordance with the standards set forth
in paragraph 5.
13. The Office of Manageme.nl and
Budget will designate cognizanl
agencies for major recipienl
organizations.
14. The cognizant agency shall have
the following responsibilities:
a. Obtain or make quality assessment
reviews of the work oJ non-feperal
audit organizations, and provide the
results to other interested audit
.agencies._[IL~ non:F:eder<!l audit
organization is responsible for audits of
redpients that ha\"e different cognizant
audit agencies, a single quality
assessment re\.iew should be arrar.ged.)'
b. Assure that all audit reports of
rec'pients tha t affect federally assisted
programs are received, reviewed, and
distributed to appropriate Federal audit
officials. These officials will be
responsible for distributing Qudit reports
to their program officials.
Co Whenever significant inadequacies
in an audit are disclosed, the recipient
organization will be advised and the
auditor will be called upon 10 take
corrective action. If corrective action is
nbt taken, the cognizant agency shall
notify the recipient organization and
Federal awarding agencies of the facts
and its recommendation. Major
inadequacies or repetili~ substandard
performance of independent auditors
shall be referred to appropriate
professional bodies.
d. Assure that satisfactory audit
coverage is provided in a timely manner
and in accordance with the provisions of
this attachment.
e. Provi~ lechnical advice-and act as
a lialwn between Federal agencies;"
independent auditQrs, and recipient
organiza lions.
f. Mainlain a rollowup system on audIt
findings and investigative matters to
assure that audil findings are resolved.
g. Inform other affected audit agencies
of irregularities uncovered. The audit
agencies. in turn, shall inform all
appropriate officials in their agencies.
State or local governrnenl \.aw
enfOrcement and prosecuting authorities
shall also be informed of irregularities
within their jurisdiction.
15. Recipients shall require
.ubrecipients that are State andloca1
governments or Indian tribal
goveI'I".ments to adopt the requirements
in paragraph 1. through 11. above. The
recipient shall ensure that the
.ubrecipient audit reports are received
as required. and shall submit the reports
to the cognizant agency. The cognizant
agency will have the responsibi:ity for
these reports described in pe:agraph 14,
p.":':,s:-.e~:,y THE: m:RSAli OF :~A7;O:\""'L AFFAiRS. r:-;c..~'AS:-;~:;G,O:~. DC, :0037
L -/7
IS
I
I
APPENDIX D
METHOD OF PAYMENT
'T
:~. .
PETERSBURG ECONOMIC DEVELOPMENT CORPORATION
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 incom~
received.
Payments will be made to St. Petersburg Economic Development Cornoration.
J-1
I
IULA ~
I
SECTION 3 CLAUS~
A. The work to be performed under this contract is on a project assisted unde=
a prograo providing direct Federal financia~ assistance from the Depart~ent
of Ho~sing and Urban Development and is 5ubj~ct to the requirements of Sec-
tion 3 of the Housing and Urban Develop~ent Act of 1968, as a~ended, 12 U,S.C.
170u~ Section 3 requires that to the greatest extent :easible opportuni~ie5
for training and employment be given lower income residents of the project
area and contracts for work in connection with the project be awarded to
business concerns which are located in 0= o~ned in substantial part by persons
residing in the area of the project.
B. The carties to this contract will comply with the provisions of said Section 3
and the reg~lations issued pursuant thereto by the Secre~arj ot Housing and Urb~~
Development set forth in 24 CFR, and all applicable rules ~~ci orders of ~he
Department issued there~der prior to the execution of chis contract, The
parties to this contract certify and agree that they are ~~der no cont~actual
or other disability which would prevent the~ from complying ~lith these re-
quirements.
C. ,The contractor will send to each labor o=ganization or representative of workers
with which he has a collective bargaining agreement or other contract or under-
standing, if any, a notice advising the said labor organization of workers'
representative of his commitments under this Section 3 Clause and shall post
copies of the notice in conspicuous places available to employees and appli-
c~~ts for employment or training.
D. The contractor will include this Sectio~ 3 Clause in every subcontract for
work in connection with the project and will, at the direction of the applicar.t
for or recipient of Federal financial assistance, take appropriate action pur-
suant to t~e subcontract upon a finding that the subcontractor is in violation
of regulations issued by the Secretary of ~ousi~g and Urban uevelop~ent, 24
CFR. The =cntractor will not subcontract wi~~ any subcontractor where it has
notice or knowledge that the latter has been found in violation of regulations
~~der 24 CF~, and will not let any subco~tra=t unless the s~contractor has
first provided it with a preliminarf statement of ability to comply ~ith the
requir~~ents of these regulationz.
E. Co~?liance with the provisions or Section 3, the rcg~lations set :ort~ in
24 CFR, and all applicable rules and orcers of the Depart~e~t issued thereuncer
prior to the execution of the contract, shall be a con~iticn of the Federal
financia~ assistance provided to the proj~ct, b~~ding~;o~ ~~e applicant or
~eci9i~n~ :0= such assistance, i~s suc=eS5~=5, a~d ~ssi~s. Fa~lu=e t8 :~~:i:l
t~ese req~ire~~nts shall subject the a9plicant or recipien~, its contractocs
a~c s~=o~~=ac~o=s, its suc=es~crs, an~ assig~s to those s~~,=~io~s s~eci:ied ~y
the g=a~~ or loan agree~e~t or contract ~~=ou;h ~h~c~ ~ede=al a: sistans2 ~s
pruvice~, and to su~~ sanc~io~s as are s?~~~=ie~ ~1 2~ C:~ 133.
E-l
I
I
l'PENDIX F
NOTICE OF REQUIP~~~T FOR .~=IR}~TIVE ACTION
TO ENSURE EQUAL El'PLO'{~'!E~;T OPPORTUNITY
(EXECUTIVE ORDER 11246)
1. ~e Offeror's or Bidder's attention is called t:) t.."1e "EquCl.l Opportu."1ity
Clause" and the "Standard Federal Equal E:';Iployment Opportunity t.:onstruc-
tion Contract' Specifications" set forth herein.
2. The goals and timetables for minority and female participation, expressed
in percentage terms for ~~e Contractor's aggregate workforce in each
trade on all construction'work in t.."1e c:)vered area, are as follows:
A. Goals for Female Utilization, All ~races:
AREA COn~
Goals for Women apply nationwide.
GOALS AND TIZ.lETABUS
Timetable
Goals
(pere e:1 ':.)
From Apr. 1, 1978 until Mar. 31, 1979. ... 3.1
From Apr. 1, 1979 1.4"1til Mar. 31, 1980, ,. . 5.1
From Apr. 1, 1980 un til Mar. 31, 1981.... 6,9
B. Goals for Minoritv Utilization:
TAHPA~ST. PETERS BIJRG , F!..A., ARE.!>'
Area covered: Hillsborough, Pasco, and ?inellas
Counties, :'1a.
Goals and Ti~e~ablesl
T::-ade
Goal
(perce:'l t.)
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All. , , , . . . . . . . .. . . , . . . . . . . . . , .
lrer ~"1e life of the project,
These goals are applicable t.o all ~~e Concract.or's const.ruction work
(whe~~er or not it is Fecer~l or fecerally assistec) per:o~ed in ~~e
covered area.
The Cor, t:.=actor I s cOr.1.o1iance wi t.~ c.......e ::xec'..:.ti'/e Orde:: anc. ':..:'1e regula. t.io:1::;
in ~l ~FR ?art. 60-4 shall be based on it.s i~?lernentat.io~ of the Equal
cp;:crt''':''"1.i ';;:'f C:a~se, s::eci=ic a::i~3.:;".Te il:::ti.C:1 cb:'i<;3.t.i:::~s re~\.lired ':J::,
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A!"k'l::NU.LX t.
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the specifications set forth in 41 CrR 60-4.3(a), and its efforts to meet
the goals established for the geograrhical area where ~~e contract
resulting from this solicitation is ~o be performed. The hours of minority
and fe~ale ~nployment a~d training must be substanti~lly uniform throughout
the leng~~ of the contract, and in each trade, and the contracto~ shall
make a good fai ~~ effort to employ miJ"'.:Jri ties and women evenly on each of
its projects. The transfer of minority or female employees or trainees
from Contractor to Contractor or from pr0ject to project for the sole
purpose of meeting the Contractor's goals shall be a violation of the
contract, ~~e Executive Order and the regulations in 41 CFR Part 60-4,
Compliance with the goals will be measured against the total work hours
per:::crmed.
3. The Contractor shall provide '"ritter. notifi6ation to t..'1e Director of the
Office of Federal Contract Compliance Programs within 10 working days of
award of any construction subcontract in excess of $10,000 at any tier
for construction work ~~der the contract resulti~g from ~~is solicitation.
The notification shall list the n~.e, address and telephone n~~er of ~'1e
subcontractor; employer identification n~~er; c"timated dollar amount of
~'1e subcontracti estimated starting and completion dates of ~'1e subcon~act;
and t..'1e geographical area in which ~~e contract is to be performed.
4. As used in ~~is Notice, and i~ t..~e contract resulting from this solicitation,
the "covered area" is Pi~ellas COUoI.t:J, Florida.
60-4.3 .(a)
EQUAL Ol?POR'!'UNITY C:.AUSE
curing t..l;e performance 'of ':his contract, the cont::actor agrees as fol10.....s:
1. The contractor will r.ot discri::tinate against any employee or applicant
for employment because of race, color, religion, sex, or national origin,
The contractor will take affir:nati'/e action to ensure that applicants are
employed, and ~~at employees are treated during emplo~ent wi~'1out regard
to their race, color, religion, sex, or national origin. Such action 'shall
include, but not be limited to ~~e following: E:mployment., upgradil".g,
demotion, or transfer; recrui~~ent or recruit..~ent advertising; layoff or
te~~nation, rates of pay or o~'1er forms of compensation; and selection
for training, including apprenticeship. The contractor agrees to Fo~t
in conspicuous places, available to ~~ployees and applicantS for ~ploy-
ment, notices to be provided setti~g forth ~~e provisions of ~~is non-
discri~nation clause,
2, ~he co~t=actor will, in all solici~a~:ions or advert:iseDen~s for employees
placed by or on behalf of ~he contractor, state that all ~uali:ied
applicants will receive consideration for em?lol~e~t ~i~.out regard to
race, color, religion, seX, or natienal origi~.
3. The contractor will send to each 1a=or ~nion or re?resentative of workers
wi~~ which he has a collecti"/e bar~aining ag=eeme~t or other contract or
~~derst.anding, a notice to be pro'l~ded advising the said ~abor union or
wo=~-:ers I representatives of t:-.e cor. ::.rac,:::r' s c:::r.~i ::..-::ents ,-,r.de::: t.his
section, and shall pozt. copies of :~~ notice in ccnspicuc~s places a':ail-
able to employees a~d appl~c~~t5 -~- ~~?lo:~.e~~.
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APPENDIX F
4. The contractor will comply with all provisions of Executive Order 11246
of September 24, 1965, and of the rules, regulations, and re:evant orders
of the Secretary. of Labor,
5. The contractor will furnish all information and reports required by
Executive Oraer 11246 of Septe~her 24, 1965, and by rules, regulations,
and orders of the Secretary of Labor, or pursuant thereto, and will permit
accesS to his books, records, and acco~~t5 by the administering agency
and ~~e Secretary of Labor for purposes of investigation to ascertain
compliance with such rules, regulations, and orders.
6. In toe avent of the contractor's non-co~p1ience wit" the nondiscr~nation
clauses of ~~is contract or with any of ~~e said rules, regulations, or
orders, this contract may be canceled, terminated, or suspended in whole
or in part and ~~e contractor may be declared ineligible for fur~~er
Gover~ent contracts or federally assis~ed constI~ction contracts in
accordance with procedures au~~orized in ~xecutive Order 11246 of
September 24, 1965, or by rule, regulation, or order of the Secretary
of Labor, or as o~~erwise provided by law,
7. The contractor will include the portion of ~~e sentence immediately
prec,,'" nq p.,".q ""ph (11 . mol t.hP. prov;"'" n.; ,,' 1'''""'1 t" pho (l1 through ( 71
in u,v.;ry ~ubcontrcJ.ct or purch.l~C orch:!." I.:nll!~;~ 1';Cl!lOpt.l:d by rull~:I, raqul.l-
tions, or orders of ~~e Sec::-ctary of L~(Jr is::;uad pur::iud.nt to section
204 ,,' cxecutivP. Order 11246 of septec"e" 24. 1965. sO that sue' provisions
will bo biuding upun cad; ;;ubcu" 't", , ,., '" vo,,"'''' "'hn "," t"'" tor w j 1\
take such action with respect to any s~cont=act or purchase order as
~~e administering agency may di=ect as a.rne~ns of enforcing such provisions,
including sanctions for non-compliance: p=ovided, however, That in the
event a contractor becomes involved in, or is threatened with, litigation
wi~~ a subcontractor or vendor as a result of such di=ection by ~~e
administering agency, the contracto::- ~ay request ~~e united States to enter
into such litigation to protect the interests of ~~e united States,
STANDARD FEDERAL EQUAL ~LOYMENT OPPOR~N!TY CONSTRUCTION CONTRACT
SPECI;ICATIONS (EXECUTIVE ORDER 11246)
1. As used in ~~ese specifications:
a. "covered area" means ~~e geographical area desc::-ibed in ~~e solie:" ':.a-
tion from which ~~is cont=act res~~~ed.
b. "Di::-ector" means Di=ectOr, Office of :edera~ cont=act Co:::pliance
Programs, United States Depart:.ent of ~abor, or any person to whom
~~e oi::-ector delegates authority.
c, "Employer identifica.tion number" i.,ea:"\s the Fece!:"al Social Security
nur.her used on ~~e ~ploye::-'s Quar~~rlJ Federal Tax Return, U. S.
T::-easUIY Depar~~ent Form 941.
d. "l-1ir,cri ty" includes:
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APPENDIX F
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(1) Black (all per~ons having origins in any of ~~e Black
African racial groups not of Hispanic origin) ;
(2) Hispanic (all persons of Mexican, Puerto Rican, Cuban,
Central or Sou~~ American or other Spanish Culture or
origin, regardless of race);
(3) Asian and Pacific Islander (all persons having origins
in any of the original peoples of the Far East, Southeast
Asia, the Indian Subcontinent, or the Pacific Islands); and
(4) American Indian or Alaskan ~ative (all persons having
origins in any of ~~e original peoples of Nor~ America and
maintaining identifiable tribal affiliations ~~rough m~ber-
ship and participation or coc~uni~l 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-
sions of these specifications and the Notice ~hich contains ~~e ap-
plicable goals for minority and female participation and which is set
forth in the solicitations from which ~~is contract resulted.
3. If the Contractor is participating (pursuant to 41 CFR 60-4.5) in a
Hometown Plan approved by the U. S, Depar~~ent of Labor in the covered
area either individually or through an association, its affi~tive action
obligations on all work in the Plan area (including goals and tinetables)
shall be in accordance wi~, that'Plan for those trades which have unions
participating in the Plan. Contractors must be able to d~~onstrate their
participation in and co~pliance with ~~e provisions of any such Hometown
Plan. Each Contractor or Subcontractor participating in an approved Plan
is individually required to comply wi~~ its obligations under the EEO
clause, and to make a good faith effort to achieve each goal ~~der the
Plan in each trade in which it has employees. The overall good faith
perfo~nce by other 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 i~plement the s?ec~=ic affi~at~ve action standar~s
provided in paragraphs 7a ~~rough p of ~~ese specifications. The goals
set for~~ in the solici~a~ion fro~ whic~ ~~is con~~c~ res~l~ed are
expressed as percentages of the total hours of e~plo:~en~ and training
of minority and fe~le utili=a~ion ~he ~on~rac~or sho~ld reasonably be
able to achieve in each construction trade in which :~ has e~ployees -.,
~~e covered area. The Contractor is ex?ec~ed ~o ~ake scbstantially
unifo~ progress toward its goals in each craft during ~~e period
specified,
5. Nei~~er ~'e provisions of any collective bargaining ~gree~er.t, nor ~~e
failure by a ~~ion wi~' ~hcm the Con~ac~or ~as a collective bargaining
ag~ee~ent, to refer eit~er ~norities O~ ~o~en .5~al: cxc~se ~~~ Cont=~C-
tor's obligations under ~ese specifications, Execu~:~e Order l12~6, or
~'e reg~lations prc~ulga:ed purs~~n~ ~~e=eto.
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6.
I I APPENDIX F
In order for the nonworking training hours of apprentices and trainees
to be counted in meeting ~~e goals, such apprentices and trainees must
be employed by the Contractor during the training period, and the
Contractor must have made a commitment to employ the apprentices and
trainees at the completion of their training, subject to the availabil-
ity of employment opportunities. Trainees must be trained pursuant to
training programs approved by the U. s. Departlnen t 0 f. Labor.
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7. The Contractor shall take specific af:irmative actions to ensure equal
employment opportunity. The evaluation of the Contractor's compliance
with ~~ese specifications shall be based upon its effort to achieve
maximum results from its actions. The Contractor shall document these
efforts fully, and shall implement affinlative action steps at least as
extensive as ~~e following:
a. Ensure and maintain a working enviro~~ent free of har=assm~nt,
intimidation, and coercion at all sites, and in all facilities at
which the Contractor's employees are assigned to work, The
Contractor, where possiDle, will assign c~o or more women to each
construction project. The Contractor shall specifically ensure ~~at
all foremen, superintendents, and other on-site super1isory personnel
are aware of and carry out the Contractor's obligation to ~aintain
such a working enviro~ent, with specific attention to minority or
female individuals working at such sites or in such facilities,
b. Establish and maintain a current list of minority and female
recruitment sources, provide written noti:ication to ~inority and
female recrui~~ent sources and to co~~unity org~~izations when ~~e
Contractor or its ~~ions have employnent opportunities available,
and m~intain a record of the organizations' responses.
c. Maintain a current file of the naces, addresses and telephone
n~ers of each minority and fema~e off-~~e-street applicant and
minority or female referral from a union, a recrui~ent source or
communi~/ organization and of what action was taken wi~~ respect
to each such individual. If such individual was sent to ~~e union
hiring hall for referral and was not referred back to the Contractor
by ~~e union or, if referred, not employed by the Contractor, this
shall be documented in ~~e file wi~~ ~~e ~eason ~~erefor, along with
whatever additional actions ~~e Contractor ~ay have taken.
d. Provide immediate written notification to the Director when t:.e
union or unions wi~~ which the Contractor has a collective
bargaining agree~ent has not referred to ~~e Contractor a minority
person or woman sent by t:.e Contractor, 0= when ~~e Contractor has
other information ~~at the union re:erral process has i~~eded ~~e
Contractor's efforts to meet its c~ligations,
e, Develop on-t~e-job training opporcunicies and/or participa~e in
training programs for the area which eX?ressly include minorities
and women, including upgrading ?rogr~~ and apprenti=eship and
trainee progra~ ~clevant to ~~e Contractor's e~plCiT.ent needs,
especially those prograos funded or approved by ~~e Depar~~ent 0:
Labor. The Contractor shall provide notice of these =rocr~s to
the sources compiled under 7b abo'le,
"
Disser..inat~ t.,':e Co!".tractor's ::::0 ~ol.ic'! ';;'1 ?rc'::.di:-.q ;-,o::.ce 0: t.,':e
policy to Uo"'1ions and trainir.g ~ro(j=3:.'.s a:-.-:1 rea:'..:est:..ng~'1eir coopera-
tion in assisting ~':e Contractor in ~eet:..~g its ::::0 o~lisa~cns; by
including it in any poli=: :;".an',,:.'!.':' arod c:Jl.;"e'=':.i..':~ ':Ja:-;3.i;;i;;g agre<=!!'.er-.':;
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APPENDIX F
publicizing it i~ the company newspaper, annual report, etc,; by
spec~fic review of the p?licy 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 board~ accessible
to all employees at each location where construction work is
perfor1l\ed.
g. Review, at leastanncally, the company's EEO policy and affir.native
action obligations under these specifications wi~~ all employees
having any responsibility for hir~ng, assig~~ent, layoff, termina-
tion or other employment decisions including specific review of
these items with onsite superviso=y personnel such as Superintendents,
General Foremen, etc., prior to the initiation of const~ction work
at any job site. A written record shall be made and maintained
identifying ~~e time and place of these ~eetings, persons attending,
subject matter discussed, and disposition of the subject matter.
h. Disseminate ~~e Contractor's EEO policy externally by including
it in any advertising in the news media, specifically including
minori~ and female news media, and providing written notification
to and discussing the Contractor's E~O policy wi~~ o~~er Contrac-
tors and Subcontractors with whom ~~e Contractor does or anti=i-
pates doing business.
i. Direct its recruitment efforts, both oral and writ~en, to minority,
female and community organizations, to schools wi~~ minority and
female students and to minority and female recrui~~ent and training
organizations serving the Contrac~or's recrui~ent area and employ-
ment n~eds. Not later ~~an one ~onth prior to ~he date for ~~e
acceptance of applications for apprenticeship or other training
by any recruitment source, the Contractor shall send written
notification to organizations such as ~~e above describing the
openings, screening procedures, and tests to be used in the selection
process.
j. Encourage present mi~ority and female employees to recruit o~~er
minority persons and women and, where reasonable, provide after
school, summer and vacation employment to minority and fe~ale yo~tr.
bo~~ on the site and in other areas of a Contractor's ',%rkforce.
k. validate all tests and other selection re~uirement3 ~here there'
is an obligation to do so under 41 C:~ ?art 50-3.
1.
Conduct, at least annually, an invento~i anc evaluation at least of
of all ~inori~1 and fe~le personnel :or pr~~otiona~ op~ortunities
and encocrage these employees to seek or to pr~parc for, ~~rough
appropriate training, ete" such o?~ortunities
Ensure ~~at seniority pr~ctices, job classificacions, ~ork assign-
ments and o~~er personnel pract~ces, co ~ot hav~ a ciscri~inatc=l
effect by continual~1 ~onitoring all personnel ~nd e~plcj~ent
:elated ac't:ivi~ies t:) ~:"lsu.:"e :..~a.: ~:-.e ::::::' :;:':Jli::y ::.:-::i :;-.e C~r.':=:'=:'::='.3
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APPENDIX }'
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obligations under these specifications a~e being carried out.
n. Ensure that all facilities and company activities are non-
segrated except th~t separate or si~glc-user toilet and
necessary changing facilities shall be provided to assure
privacy between ~~e sexes,
o. Document and maintain a record of all solici~ations of offers
for subcontracts from minority and female const::uction
contractors and suppliers, including circulation of solicitations
to minority and female contractor associations and other business
associations.
p. Conduct a review, at least annually, of all supervisors' adherence
to and performance under the Contractor's 2EO policies and
affirmative action obligations.
8. Contractors are encouraged to participate in voluntary associations
which assist in fulfilling one or more or t~eir affi~ative action
obligations (7a through p), The efforts of a contractor association,
joint contractor-union, contractor-co~m~~ity, or other similar group
of which ~~e contractor is a member and participant, may be asserted
as fulfilling anyone or more of its obligations under 7a through p
of these Specifications provided that ~~e cont::actor actively partic-
ipates in the group, makes every effort to assu~e ~~at the group has
a positive impact. on the emplo~.ent or ~inorities and women in ~~e
industry, ensures ~~at ~~e concrete benefits of ~~e program are
reflected in the"Contractor's minority and fenale workforce partic-
ipation, ~akes a good faith effort to ~eet its individual goals and
timetables, and can provide access to cocurr.entation which demonstrates
~~e effectiveness of actions taken on behalf of the Contractor. The
obligation to comply, however, is the Contractor's and failure of suc~
a group to fulfill an obligation shall not be a defense for the
Contractor's noncompliance.
9. A single goal for minorities and a sepa=ate single goal for women have
been established. The Contractor, however, is re~~i=ed to provide
equal employment opport~~ity and to take affi~ative action fo~ all
minori ty groups, both male and female, and all '....ornen, both minori ty
and non-minority. Consequently, the Cont~actor ~y be in violation
of the Executive Order if a particular group is employed in a substan-
tially disparate ~anner (for exa~pl:1 even ~oug~ t~e Contractor has
ac~ieved its goals for worn~n generally, ~~e Cont~actor may be in
violation of ~~e Executive Order if a specific ~incrity group of ~o~en
is ur.derutili=ed),
10_ The Contractor shall not use ~~e goals and t:~~~ables or affi~ative
action standards to discriminate agai~s~ any ?erscn because of race,
color, religion, sex, or national origin.
11. The Cont~actor shall not enter into any s~cont=act wi~~ any person
or :irn debarred fro~ Gover~r.,ent ccnt=~ct~ cu=s~a~t to ~xecutive
Order 112~6.
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~~~NDIX F
12. The Contractor shall carry out such sanctions and penalties for
violation of these specifications and of the Equal Opportunity Clause,
including suspension, termination and cancellation of existing sub-
contracts as may be imposed or ordered pursuant to Executive Order
112~6, 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 Contractor, in fulfilling its obligations under ~~ese specifications,
shall implement specific affirmative action steps, at least as exten-
sive as those standards prescribed in paragraph 7 of ~~ese specifica-
tions, so as to achieve maximum results :ro~ its efforts to ensure
equal employment opportunity. If the Contractor fails to comply with
~~e requirements of the Executive Order, the implementing regulations,
or these specifications, the Director shall proceed in accordance with
41 CFR 60-4.8.
14. The Contractor shall designate a responsible official to monitor all
employment related activity to ensure that the company EEO policy is
being carried out, to submit reports relating to the provisions hereof
as may be required by the Government and to keep records. . Records
shall at least include for each employee the name, address, telephone
numbers, construction trade, union affiliation if any, employee
identificatiQn n~er when assigned, social security number, race,
sex, status (e.g., mechanic, apprentice, trainee, helper, or laborer),
dates of changes in status, hours worxed per week in ~~e indicated
trade, rate of pay, and locations at which ~~e work was performed.
Records shall be maintained in an easily understandable and retrievable
form; however, to the degree th~t existing recor~s satisfy this
requir~~ent, contractors shall not be required to ~~intain separate
records.
15. Nothing herein provided shall be const~ed as a l~itation upon ~~e
application of other laws which establish different standards of
compliance or upon the application of requirements for the hiring of
local or other area residents (e.g" those under ~~e Public Works
Employment Act of 1977 and the Community Development Bleck Gran~
program).
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EXHIBIT "G"
g 570,601 Nondiscriminalion.
(&) tHscrimination prohibited. _ Sec-
tion 109 of .tlie Housing and CommWlity
Development Act ot 1974 requires that.no
person in the United states shall on the
ground of. race, color, national origin or
sex, be' excludP.d from participation in.
be derued the benefits of. or be subjected
to d1scrimlnat.\o,n under, any program or
activity funded In whole or in part with
cammuruty development funds made
available pursuanttO thiS Part; FOr pur-"
poses of this section "program or a.ctiv-
Ity" is defined as any function conduct-
ed by" an Identifiable adml..n.1stratlve unit
of tha.. reclp1ent.._~r by any unit. ~~ gQY-
ernment or prh'ate contractor recelvina'
community development funds or !Dans
from the recipient. "Funded tf1 whole 01'
.in part with community development
funds" means ths.tcommunity develop..'
ment funds in any amount In the. form
of grsnts or proceeds from HUD gue.r-
anteed loaDS have been tI'8JJSferredby
the recipient to an IdentiiiA.ble admin-
istrative unit aDd dIsbursed in a program
QLact1nt~ .
(b) SpecifiC discriminat01ll actio713
prohibited and corrective actions, (1) A
redplent mll.Y not, under any pro~.-am or
activity to which the regulations ot tb1s
pa.r. may r..pply, directly or.througll eon-
ti-R.ctUIU or other arrangements, on ~e
i"round of race, color; nat:on9.1 origin, or
(;ex:
m Deny any faclllties. servlce-s, ftnan-
cf!ll ald. or other benefits provided under
~ program or activity.
(m Provide any fn.cilitks. serviceJI, tl-
nauclal aid or ,other benet1ts whicfi are
dltl'erent., or are provided 1n a different
form from that provided to others under
the program or activity.
... (IU) Subject to segrega.~ orseparat.e
treatment In any !;>.dllty in, or In aD1
matter or process related to receipt of.
any service or benefi.t. under tJ1e pro-
gram or activity.
'(Iv) Restrict In an)' 'I'Oll.y access to. 01'
in the enjoyment or any a..dvantage or
privilege enjoyed by others u,. connec-.
tJon with'facilitles. services. :fi!!!l.nclal aId
9r other benefits under the program .or
activity.
(v) Treat ci indivIdual differently
from others in determl.n1ng whetber the
lndlvldual satLst1es any admission, enroll-
ment. eligibility. membership. or other
-requirement or condition v;hich indlvid-
uili must meet In ~rder to be pro'.jded'
lUlJ' facilities. ::ervlces or other benefit
provided under theprog.-:lm Cor adivlty.
(..1) Deny an op;.ortunity t~ partici-
pate In Ii. procram or e..ctivily ~ an em-
ployee. '
. (2) A. reciplcnt may not utilize cri-
teria or met.!lods of adrnlcistration
,,'hlch h:we the er.'n::t Cof subjedlng 1..."1-
divldu:l.1s to c!scrL-r.ir:3.tion on the b2s~
of ,~, co]or.'o:;t;onal orl!;in, c. ~ex:. or
h3.'r'e the etre-ct of cc~e:lti.r1g or s~~~2.n-
tially b::;;?Jrir.g u.cco:np!i~hrr;('nt of the
objectives ot the XCtbr=:..m or ?~li'r1ty
v.1Ll-, respect to in~v!c':..::!-!s of a particular
race, cclor, J::ltlcr.3.l origIn. or H'X.
(3) A recIpIent, In detennlnlng the
sIte or location of bousing or facilities
provided In whole or In p:\rt v.ith funds
under thIs pnrt, may not make selec-
tions of such site or lo~tjon .whJch bave
the ellect oC excluding individuals from,
denying. them the benetl13 or. or sub-
.-jectlng them to dlscrimln.1.tlon on -the
ground of race, color, natlonai origin. or
&ex; or which rove the :;mrpose or ~ffect
of defeating or &ubst.:'lnt..hlly lmpn!r1:lg.
the'3.CCQmpllshment of the objectives oC
the Act and of th1s section.
. .(~) en In a.dmL'l.!~rlng II. progrnm or
acttvlty funded in ...hole or In p:u-t with
oommun1ty cfvelopuient' block ~ant."
funds r('cardlng which the recljJlent h33"
pre.'iously dl~crlmin3.~d ~:UDSt f-<-rsons
00' the' ground or rn.ce. color. D:J.tlonal
oricin 'or !-C.Jt. the recipient must. bke
affirmative nctlon to overco:ne .!.he eITc-.:ts
oJ .Q!lor dJ~rimln:s.!.:on.
: (U) .E."\'cn In UIU nt.s,nre of such prlor
'dlscrlmln3.tlon. a r<<xlpknt In Mm~riis-
1erlng a pro~rnm or ncl~\1t:r fundc-d in
whol~ or In pnrt ....1t~ OOI!::m=Jty de-
ve1G;Jment block l;T7<nt rtJmh should tnke
~Uvo action~' ;'I.:c.rcomc lbe e!te'ctii.
'01' condItIons which would othcn>o1se re-
ault In lL-nJtlng p:ullclpatlon by per~onlii
or 8 particular race. color, natlonnl or~cln
or sex:. Where pre\iolls dLscrimlnawO"
p~tlce.or U:~e tcnds. on the 8"!ound
of race. color, natIonal origin or sex. t(I
exclude L-1dh1dt:als from pnr'tlc!:p:l. tJOD.
In. to d~ny them the beneflu "r. or to
'subject L'1OJn'-'to discrlminntion under-
any prognun or aclhity to which thls
part applfes, the red;:lent h:\.S an obliga-
tion to l:l.ke rca~nable action to remove
or oyercome the co~eGuences oL the'
prior dlscrimlnat.ory pr3.ctlce or usage,
and to accomplisb the pUf1Xlse of the
AS~
(m) A recipient shall not be prohibIted
by thi.'i part. from taking any action elid-
ble under Subpart C to ameliorate an im::
bal:lnce In services or facUiUes prcvlced
to any gf'OCTRphlc a.rea or specL'ic.6J'C-lup
of persons within ILs jurisdictIon. where
thc purpose of sueh a<:tion is to overcome
pIjor rlis.criininatory practice or usage, _
(5) Kotwithsl:!nding :my thing to the
contrary In this. section. nothing con-~
t~lned herem ~h?..ll be cor.rtrued to pro-
hIbit any recipient from maintaining or
construct.:ng separate Ii;.ing facilities or
rest roc::n faciEtiesJor the different ~exps,
Furthermore, selectivity on Ule basis oC
sex"is HOt prohibited when tnstitutiolla.f
or custodial seT\ices C<ln proper!.r be per-
formed oDly by Ii. meml:,er of L'1e same
sex a.s the recl;:ients ot lbe services.
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Fedoral ~egJdr /- Vol. 45. No. 132 tTuesday. July 8. too / Notices: ..~
- 46023'
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Response, The cosl principles are
dllsigned to cover most situations; .
however. there are Iilways exceptions
thaI musl be considered on a case-by-
case basis. The Circular conlains a
provision for Federal agencies 10 request
exceptions,
Comment, Several respondents ,;.
queslioned why interel;lt is not an ' ..., .
allowable cost. since it is an ordinary
and necessary cost of doing business. -
Response. It has been a longstanding
policy nol to recognize interest as a cosL
However. this policy has recenlly been
revisp.d for Slate and local govemmenls
in Circular 74-4. with respect to the cost
of office space. The revision provides
that "renlal" rales for publicly owned
buildings may be based on actual coats.
including depreciation. interest.
operation and mainlenace coals. and
other allowable costs. This revision was
under consideration for some time, It
was studied extensively by OMB, the
General Accounting Office and others.
and considerable analysis wenl into its
formulation. Suggestions for exlending it
to nonprofit organizations would bave to
be examined with equal care, This has
nol yet been done, and we were
reluctanl to further delay Issuance of '
this Circular.
CommenL Several respond en Is
questioned why public information costs
wt!re not allowable as an indirect cost.
Response. Public information costa
are often direcl services to an
organization's other pr-ograms, They are
allowable, however, as a direct charge
when they are within the scope of work
of a particular agreemenL
Comment One respondent suggesled
lhat smaller grantees be excluded from
complying with the Circular.
Response, Similar rules for the 50
selecled items of cost would be needed
regardless of the size of lhe grantee. To
the extent possible, the Circular
provides simplified methods for smaller'
grantees, , '
Comment. One respondent said the '
requiremenls of the Cost Accounting"
Standards Board should be applied to
cover contracts with nonprofit
organizations.
Response. It is unlikely that the type
of grantees covered by this Circular
would have contracts large enough 10 be
covered by the CASB. In lhe event lhat
they do. however, the regulations of the
CJ\SD would apply.
Comment. One respondenl said the
allocation of indirect cost 10 dona led
services would pose a tremendous
difficulty to the organization, The
organization relies on a corps of
approximately 6,000 committee members
to carry O:lt obligalions in response to
Governrnenl requests. There is no
~
..
.
.. employer relalionship in the .
arrangemenls for this asslslance. nor are
there conunittee members normally
reimbursed for such services, Further, it
was pointed out the conunitlee mt:muers
spend many thousands' of hours outside
lhe organization's premises conducting
research: . .
Response. It would appear that this
type of committee arrall8ement would
not be considert!d in the determination
of the organization's indirect cost rala
provided that Federal agreemen~s do not
bear an unreasonable share of indirect
cost. However, the cognizant agency
will be responsibltt for evaluating the
allocation of indirect cost where there
are committee-type arrall8emenls on a
case-by-case basis.
Comment. One respondent 6uggtlsted
that wherever possible the language in
the Federal Procurement Regulations be
used for nonprofit organhalions,
Response. The language in the Ft1doral
. Procurement Regulations was
designaled primarily for commercial
firms. and ill not necessarily well suited
to nonprofit organlzations. At the
suggestion of the General Accounting
Office. the nonprofil cost principle!l
were written 10 conform as closely as
possible 10 those of educational
institutions 'Circular 1\-21). and Slate
and localgovemmenls (Circular 74-4),
John J. Lord-.
Chief. Financial ManageJ1lent Branch.
(Circular No. A-1221
..
Ju.ne 21. 1980 ",0, < .
To The Heads of Executive
Departments and Establishments
Subject: Cost principle. for nonprofit
organizations. ,.
.' 1. Purpose. This Circular establishea .
principles for determinill8 cosls of
granls. contracts and other agreements
with nonprofit organization., It doe. not
apply to colleges and universities which
are covered by CircuIarA-21; Stale,
local. and federally recognized Indian
tribal governments which are covered
by Circular 74-4; or hospitals, The
principles are designed to provide that
the Federal Government bear its fair
share of costs except where restricted or
prohibited by law. The principles do not
altempllo prescribe the exlenl of cost
sharing or matching on grants, contracts,
or olher agreements. Howevet, such c,ost
sharing or matching shall nol be '
accomplished through arbitrary
limitations on individual cost elementl;
by Federal agencies. Provision ior profit
or other increment above COil is oulside
the scope of this Circular.
2. Supersession. This Circular
supersedes coal principles issued by
H-2
individual agencies for nonprofil- ',' .:. ".
organization. . . .. .
3. Applicability. a. These principles.
shall be used by all Federal agencies in
determining the COils of work performed
by nonprofit organizations under grants.
cooperative agreements, cost ...
reimbursement contracts, and other... ...'
conlracta in which costs are used in .
pricing. adJDinistration. or seltlement... "
All of these ins[ruments are hereafter
reCerred 10 as awards, The principles do '.
not apply to awards under which an
organization Is nol required to account.
10 the Government for actual costs.
incurred, .
b. All cost relmbW'Sement subaward..,-
[subgrants, subcontracls, etc.) are
subjecl to lhose Federal cost principles
applicable to lhe particular organization
concerned, Thus, if a subaward is to a
nonprot1t organization. this Circular
shall apply: if a subaward is to a
commercial organization. the cost .
principles appliceble to commercial
concerns shall apply; If s subaward is to
s college or university. Circular A-21
shall apply; If a liubawsrd is to a State. .
local. or federally nlCognized Indian
tribal government, Circular 74-4 shall
apply.
4, Definitions, a. "Nonprofit
organization" meana any corporation.
trusl. associalion. cooperative. or other
organization which (1) i. operated
primarily Cor scientific. educational.
service, chartlable, or similar purposes
In the public inlerest: (2) is not
organized primarily for profit: and [3)
uses its net proceeds to maintain.
Improve. and/or expand ita operations.
For this purpose. the term "nonprofit
organlzation" exclude. (i) colleges and
universities; (il) hospitals: (Iii) State.
local. and federally recognized Indian. .
tribal govemmenb: and (Iv) those .....
nonprofit organizations which are -..
excluded from coverage of this Circular' . .
in accordance with paragr~h 5 below.
b, "Prior approval" meens securill8 .
the awarding agency's permission in
advance to incur cost for those ilems
that are designaled as requiring prior
approval by the Circular, Generally this
permission will be in writing. Where an
item of cost requiring prior app~val is
specified in the budgel of an award.
approval of the budget constitutes
approval of that cost
5. Exclusion of some nonprofit
organizations. Some nonprofil -
organizations. because of their size and
nature of operations. can be considered
to be similar to commercial concerns for
purpose of appiicability of cost
principles. Such nonprofil organization.
shall operate under Federal cosl
principles applicable to commercial
concerns. A listing of these
r
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- Fede,.1 Regis'.. I Vol. 45. No,-1.' t T';"d.y. July 8. 198.1. Notices
46025.
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B. Direct Costa
1. Direct costs are those that can be
identified specifically with a particular final
cost objectivll: i.e.. a particular award.
project. service. or other direct activity of an
organization. However, a cost may-not be
assigned to an award as a dire<:t cosL if any
other cost incurred for the same purpose. in
like circumstance, has been allocated to an
award u an indirect cost. Cost identi6ed
spedficallywilh awards are direct cost of the
awards and are to be assigned directly
thereto.. Cost identified specifically with other
final cost objectives of the organization are
direct costs of those cost objectives and are
not io be assigned to other awards directly or
Indirectly.
2. Any direct cost of a minor amount may
be treated 81 an indirect cost of or reasons of
practicality where the accounttreatmenl for-
such cost is consistently applied to all final
cost objectives,
3. The COlt of certain activities are not
allowable all charges to Federal awards (see.
for example. fund raising costs in paragraph
Z1 of Attachment B1. However, even though
thel>e cos~ are unallowable for purposes of
computing charge. to Federal awards. they
nonetheless must be treated a. direct cost for
purposes of detennining indirect coat retelt
and be allocated their share of thlt
organization'. indirect costs if they represent
aclivities which (ll include the salaries of
personneL (2) occupy space. and (3) benefit
from the organization's indirect cost..
~. The cOlds of activitil!1l performed
primarily a.s a service to- members. clients; or-
thiJ general publlc when significant and
necessary to the organization's mission must
be treated as direct costs when or not
allowable and be allocated anequitlible
share of indirect cost$. Some eumpll!1l of
these types of activities include:
a. Maintenance of membenhip rolls;
subscriptions. publicatiON. and related
functions,
b. Providing services and infonnatioll' to
member$. legilllative or administrative
bodies. or the public. _
c. Promotion. lobbying, and other forms of
public relations,
d. Meetings and conferences except thosa
held to conduct the general administration of -
the organization.
3. Maintenacna. protection. and investment.
of special funds not used in operation of the
organization.
f. Auministration of group benefits on
beh~lf of members of clients including life
and ho!<pital insurance, annuity or retirement
plans. (Ulancial aid. etc.
C. Indirect CosL
1. Indirect cosls are those tbat Ildve- been.
i:lcurred for common or joint objectives and
c~nr.ot be readily, identified with a particular
fin"i cost obj..ctive. Uire<:t cost or minor
a:"ounts may be trealed as indirect costs
t.:nd:"lr th~ conditions described in paragraph
fl.2. aoove. After direct costs have-been
d~termined and assigned directly to awards
or other WOi'k as appropriat8. indirect costs
are those remi:lining to be allocated to-
b~l:efit:::~ cost objectives. A cost may not be
allocated to an award as an indire<:t cost il
any other cost incurred for the same purpose.
In lika circumstances. haa bee" allsi8l1ed to
alllawaro as a direct cost.. ..,... -.-' ..
2. Decauae of the divenll'chllr8cteristics
and accounting pr<lctices of nonprofit
organizations. it is not posaible to- sp~iry the
types of cost which may be clallsified as
Indirect cost iB all situation-However, typical
examples of Indirect cost for many nonprofi~
organizations IDa)' include depreciation or
use allowanua on bw.ildingsand equipment.'
thlt costs of operalin8"lInd maintaining
facilitie$. and geoerellldminilltration and
general expense$. such &II, the salaries and
expenses of executive officers. p&rSOMel
admini~tration. and accoun~
D. AllocaliOltol Indirect Cosl.and
Determination of Indirect Cost Rate3,
1. General....
8. Whllre a nonprofit organization has only
one major function. Dr whllre all its major
functions benefit from its inilirecl costs to
approximately the lame degree. the
allocation of indirect costs anu the
computation of an indirect co~ rate may be
accomplished through simplified allocation
procedures' as de8cribed in paragraph Z
below. .
b. Where all organization ho several majur
functiola which benefit fromlta.indirect coata
In varying desrees. allocatioAof indirect
costs may require the accumulation of such
cosls into separate cost groupings which then
are allocated individually to benefiting
function& by. meen.. of a bu. which best
measures the relative d~ree 01- benllfit. The.
indirect costs allocated to each function Itre
then diatributed to individual awuds and
otheractivlties included in thatdWH:tion.by
means of an indirect COlIt rale{s~
c. The determination of what colUltitutes an
organizatioo!. major functiona.wiI1dllpend on.
its plllpQl8;m being; thetypu.olservtcelllt
renden to the public. ils clleab.. and ita
memben; and the amount of eifort it dsvotl!1l
to such activities u fund raisiPs. publl&
information and membenhipoadiYitiea.
d. Specific methoda for alloc:aliDg indirect
costs- and computing iDdiNcL coet rates along
with the conditions under ""hieD each method-
should be-used are described ia paragraphs 2
through ~ below. .. .'0/1;'
e.The base period for the alJoaUion of
indlre<:t costs il~ the period in wllich such
costs. are Incurred and accumulated for
allocatioo wo work performed lit that period.
The base period normally should coincide
with the organization's fIScal year. but in any
. evn!. shall bot so sele<:ted sa to avoid
'inequities im the allocation of the costs.
2. SimpbfifJd oJ/aeolion metbod. .
a. Where an organiz..tion'S. major functions
benefit from ita indirect cosllto
approximately tha same degre. the allocation
of indire<:t costs molY be accomplished by (i)
separating the organization's total costs for
the bltse period as eithllr direclOi' indizect,
and (ii) dividing lhe total allowable indirect
costs (net oC applicable credits) by lIn
equitable distribution base. Tba JeSuit of this.
proces8 is an indirect cost rate wbich is Wlcd
to distribute Imlll'f!Ct coats to iodividual
awarUs.. The rate should be expf1lsslld as the
percentage- which the total amoUDt of
allowable indirect costs bea/$ to the base
Slllected. This. melhod should aloa. be used
H-4
where an organizatioll has only one.majur, ;;, .
function encolllpassing a number ol .
individual project. or activities. and may be.,
used where the level of Federal awards to'an
organizalion is relatively small.
b. both the direct costa and the indirect
COllis shall exclude capital expfllldilures and
unallow..hle COllis. Howltver. unallowable
costs which r;,present activities mUlll be
included in the direct coats under the
conditions described in patagraph 6..3. abol/e.
c. The di8tribution bass. may be lotal direct
costs (excluding capital expenditures-and
other dislorting items. such as. major.
&Ubcontrdcts or suilgraaU). direct salarie&-
and wages. or othtir base which reaulb In aD
equitable distribution.. The distributiOil base
shall generally excluda participant .upon.
costs as defined iA ~agraph 29 o!
Atlacbment B-
d. Except whllra a special rate(s} ia.
required in accordanca with paragrapa DoS
below, the indirect cosL rate developed under
the above principles. i$ applicable tG a\1.. . -..
,awards at the organizatioo. U a special
rate(s). is requited. appropmbl modificationa
shall be made in ordet to develop the.special-
rate(s}.
3, Multipltt aJiocauon bo:se mathud..
8. Where an organiwtiOCl:a iAdirect cosl.a.
benefit its major functions 1.0 varying degrae..
such COlts shall be accumulated into sellarate
cost groupings. Each grouping shall then be
allocated individually to bene6tin!l functiona,
by m8CtRS of a basa which best maasures the
relative benents...
b. The groupins- shall ba esubliahed 80 sa .
to permit the allocation of Ilach. grouping on
the basi8 of benafits provided to the. major
fWlctions. Each grouping lIbould constitute- a
pool of expenses !tlat are of like characlllr in
tatms ol the functiona they benefit and fa '. -,.
terms of lhe aliocatiol\ base. which best
measurs the relalive- benefits providd, to each.
function. The number of Mpatala groupings ,
should be held withia practical Umlla.. taking :
into coD$ideralion the materiality of the. . .
amounta involved and lbe degree 01 precision
desired. '
Co Actual conditions muat be taken intG -.- f
account in selecting the base to be used in. ,- ,:
allocating the expenseS in each grouping 10.:" .
benefiting funcliona.,Whell an allocation caA ~
be made by. assignmentDf a coat groupiAg,.~.-~
directly to the function, benefited. the .
allocation sha~ be made \.n. that manner. .
When the expenses in a grouping are mote
generaL- in nature. the allocation should be
made through the use of a selected bllse
which produces reSliI~thOit are Ilqu.itable to
both the Govemmenland tha o;ganizatioA.ln-
general. any cost element or coat re:ated
faclor associated with the oqaniLatioo'.
work is potentially adaptable for use a. an
allocation base provided(i} it can readily be
expressed in term& of dollars or othill
quantitative mea8ures (total direct (;(HOts.
direct IOilarills. and Wallll$. sUlff hours. applied..
square feell>lIed. holKS of UNll~ lWJJ100 of
documents processed. population silrved. and
the like) and (ii) iL ia. commOR to th<l
benefiting functions during ths ba~ period.
d. Except whllre a special inu:.recl coat
ratll(s} is required In accordance with
paragraph D.S. below. the sepatalfl grouplng~
of inJisect coats. allocated to flitch majuc
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Federal R~L } Vol. 45, No, 132~".TUesday, July' 8, 100 I Notices
46021' .
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is. Contribution.
9. D~pl'ecil'ltlorr and 08e allo_nces
10. Dona tionS' .
11. Employelt morale, health and welfare ,... '"
costs and creditll'
1'::. Entertainmentco:lts
n. Equipment ana other capital expendit~ ..
H. Fines and penalties
15. Fringe benefits
16. Idle facilities' and idle capscity
17. ladl!pendent research and dtmllopment'
(reserved}
\8. I;uuranca and indemnification
19, Interest. fund raisil\lj. and investment
management coats
za. labor relations COlit:a
21. Losse, on other awardll
22. ~-ldlntenance and repair cOlts
2'J. Mdteria13 and Jupplies
24, Mt!etin!lSo conferences
2a, Memben;hips, Ilubactiptions. and
profe,sional activity costs
26. Orgionization costs
Z7. Ovftrtime, e:l.tra-pay ,hift. and multisnift
pnllnium3
za. Page chargea in professional journals
Z'J. Participant JUpport costs .
,)t). {':ltent costs
a1. Pension plan~
3.!. Plant security COdtS'
:lJ. Preaward COllts
34. Professional secvice costs
aJ. Profits .uld loases 00 disposition of
dapreciab1e property or other capital
l!3Sets
Jd. Public infonnatioa service costs'
31. Publication and printing costs
3a. Rearral".gement and alteration costs
39. Reconver3illo COlts
40. Recruiting cosls
41. Relocation costs
_~ Rental cost.
43, Royalties and other COlIts for use Of
patents and Copyrights
4~. Severance Pll1
45, Specialized sllC'Yice facilities-
46. Taxes
41. Tenninalion costll
4a Training and edocatlon cosb_
49. Transportatiolt costs
50. Travel costs
[Clrcular,No..A-122J
Altaw.-t It
Slllected Itl!fD5 of Cost
ParasrapM 1 through SO provide principles
to he applied in establishing the allowabillty
of certain items of cost. These principles
apply whether a cost is treated as direct or
indirect. Failure to mention a partiL'Ular item
of cost is not intended to imply that it i.
un:lllowable: rather determination al to
a!ll)wability in each case should be-bued on
the treatment or principles provided for
similar or reldted items of cost.
1. Adv~rtjsing costs.
B. Advertillir.g costs mean the costs of
m~ia sprvices and associated- costs. Media
advertising includes magazines, newspapers.
rattio snd television programs. direct mail.
el(hibit3. and the like.
b. The only advertising costs allowable. ant
those which are solely for Ii) the recruitment
of penonnel when considered in conjunctioo
with all other recruitment COlts, 88 set forth.-
^
(
-
in paragraph 40; (ii) the procurement of goods
IInd stlrvices: (iii)- the dillpoaal of surplu..
materials acquired in the perfonnance of the
award ell:Cllpt when organiutions are
reimbursed for dispolliils at. predetermined
amount in accorJanca with:.Attaclunent N of
OMB Clrculllr A-llO; or (iv) specifi~
requirements. of the awacd.', ",
2. Bod debta. Bad dotbt~ Incla.din~ lo&Sas
(whether actual or estimatedl arisin~ from
uncullectible account. and othe, clailJlli.
rela ted collection roUsts. and related legal
cost... ara UDdUowable. ", y:_,
3. Bid and proposal cO$t&. (reeerved)
4. Bonding COIIts.
a. flonding costa arise wheRtb...
Government rttquires as$UClIIK:&agalnsL
fina(lcial 10:1& to itself or othel'll by reallOO of
tha act or default 0; the organization. They
arise also in inatances wh~1'8 tb&OI'llanizalion
require' similu 33~Ulanca. Induded are .iWl
bonds da bid. perfonnanu. payment.
advance payment. Wiringemeat;aad fideUty
bonds.
b. Cost. of bonding required pursuant to
the term, of the award are allowable.
c. Costs of bonding required.by the-
organization in the general conduct of its
operations are allowable to lhltextent that
such bondlng i. io acconlltnce with SOlolIld
business practice and the ra_and premium.
are reaSOClable under-the citauDaltanoea..
5. CommunicDlion costs. Costa incwTed ior
telephone senices.lucal and longdtstanca
telephone calls. telegrams, flIdiOllPIll9"
postage: and the like. are allowable_
6. Compe1lSQtion for personal Mlrvices..
a. CNfinilion. ComIM'Dsation-for personal
semces Includetl all compeo:l4tion \>did
cUlT1!ntly or acaued by the organization for'
services-oE employeea rendel-ed dur1n8 the
period 01 the award (except a. otherwise.
provided in paragraph g. below~ It includes..
but is not limited to. salaries.wase--
director's' and executive committee- member's
fees, incentive awards. fringabeoeflt&. ,
pension plan cosla. aUowllOCe8; for. off-site
pay, iDc:entin paY'.locatiOD all_ances.
hardship pay.,and cost of living differentials.
b, Allowabilily. ExcepLasotberwiM'
lpeciflCAlly pmvided io this paragraph the
costs of such compenaation a..-allowltbla to
the extent that
(1) Total compensation 10 Indi.vidual
employees ia. reasonable for the services
rendered and conforms to the established
. policy 0; the organization coosislently
applied to both Government and non-
Government activities; and
(2) Charges to awards whether treated as
direct or indirect costs are determined and
supported as required in W. parasrapb..
c. ReosonabJenes..
(1} When the organil:alion il predominantly
engaged io activities other thall those
sponsored by the Government, compensation
for ealptoyees on Government.sponsored
work will bltconaidered reasonable to the
extent that il is consistent with- thai paid for
similar work in the organi%alioo'. other
activities.
(Z) When the or~anization is predorninanlly
eng:.ged in Government-sponsored activilies
and in cases where the kind of employees
required for the Government activities ara
. nol found in theorganwlioa'" other.
H-6
activities, compensation.for employ_on.,. ,
Government-sponsored work will be. . -
considered re830nable Ii) th~ exlenl thatllla , ,
comparable to that paid for similar work in
thollabor markets in which thaorgl'lOlzation ;.
compeltl' for the kind of eRlployeeslnvolved..-
d. Special COCl.:Jiderationll ill determisring. - .
allo..abl1ity. Certain conditions rllquire.
special consideratioa and p08sible, limitations-,
in determining costs underPederal awards...
where Hmollnts or type:J.of comp8nsation. .:' ,-
appear IJnreasonable" AmOl1jJ such coo.diliol1llo .
a~tl the following:,
(1) Compensation to-memben of llDRproliL,
organizations. trustclots. directors. associAtes.
ofticers. or thot immediate fanlilie. thereoL.
Detennination should be made that such
compensation il reasonable for the actual
personal 5ervice~ rendered rather toa0.8_
di~ttibution of eaming:i io excesa of cos!& .-
(2) Any change in an organizatioo'.
compenllation policy resulting in a
substantial increase in the organization'a
level of compensation. particularly when It .
was COnClllTent with an inc:realle In the ratio
of Govemmtlnt dWllrdalOootheT activities of-
the organization or any change in the
treatment of aUowabilily of specific typea of
compensation dua to changes in Government
pollcy. '
e. Unallowable cost$. Costs waich ant
unallowable under other pltragraphs of this
Attachment shall not be allowable under this
paragraph solely on the basi3 tltat they-
constitute personal compensation.
f. Fringe benefits.
(1) Fringe benefits in the fonD of regular'
compensation paid to employees duri"8
peri~ of authorized absences from the job.
such as vacation leave, sick leltve, military
teavs.. and the like, are allowable provided
such coals are absorbed by all organization
activities in proportion to the Nlative amOlmt.
of time or eIfort actually devoted to each,
(2) Fringe benefits. in the fonn of employer- -
contributions or expenaes for social security.
employee illSutaRce, workmen's. .. . '. .
compensation insurance. penaion ptlUl coata ,
[see paragraph g.below). and the like. are
allowable proVided such benefits are granted. .~
in accordance with established written
organization puUcles. Such benefits whether -'
treated as indirect costa or 88 direct cosll"
shall be' distributed to particular_awards and
other activities in a mllDner consistent with.
the pattern of benefits accruing to the
individuals or group of employees whose
salaries and wages are chargeable to such
awards and other activities. '
(3)(a) Provisions for a reserve =d& a self-
insurance program foc unemploymenl
compensation or workmen's compen:;aUon
are allowable to the extent lhat lhe
provisions repre~ent reasonable estimates of
the liabilities [or such compellllat~on, and the
types of ClJverage, extenl of covera38, and
rates and premiums would havll ~en
allowab:e had i.usurance boten purc.bilsC!d te>
coverthl! risks. However. provi&.ions for Ileli-
insured liabilities which do not becoma
payable for more than lJRe yeii1' aner tha
provision is made shall not exc~d tha
present vdlu8 uf tile Iiabillty_
(b) Where an organization follows a
cOll!listent poley of expenains i1c.1ulil
payments. to. or os. bebaU of.. 8Ulployeea ot,_, " .'
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1l1ethods once used shall not be changed
unle~8 approved in advllnce by the cognizant
Federal agency. When the depreciation
method is intruduced for IIpplication to assela.
previously subject to a use allowance, the .
combination of use allowances and
depreciation applicable to such assets mUllt'
not exceed the total acquisition cost of the
assets. When the depreciation method is Wied
for buildings, a building's shell may be
segregated from each building component
(e.g.. plumbing system. heating. and air
cundi~ionin!l system. lftC.) and each item
depreciated over its estimated useful life: or
the entire building (i.e., the shell and !ill '
components) may be treatlfd liS a singltl asset
and depreciated over a single useful life.
f. When the depreciation me thud is used
for a particular class of assets. no
depreciation may be allowed on any such
assets that, under paragraph e. above. would
be viewed as fully depreciated. However, a
reasonable use allowance may be negoti.ted
for sur.h assetli if warranted aftdr taking into
consideration the amount of dapreciation
previously charged to the Government, the
estimated usefulliIe remail1ing at time of
nl!gotiation. the effect of any increl:lsed
maintenance charges or decreased efficiency
due to age, and any other factors pertinent to
the utilization of the asset for the purpose
contemplated.
g. Charg"s for use allowances or
. depreciation must be supported by adequate
property records and physical inventories
must be taken at least once every two years
(a statistical sampling basis is acceptable) to
ensure that asseis exist ano are usaiJle and
needed. When the depreciation method Is
followed, adequate depreciation records
indicating the amount of depreciation taken
each period must also be maintained.
10. Donations
a. Services received.
(1J Donated or volunteer sel'Vices may be
furnished to an organization by profesaional
ond technical personnel, consultants, and
other skilled and unskilled labor, The value
of these services is not reimbursable either aa
a direct or indirect coaL .
(2) T1ie value of donated services utilized
in the performance of a direct cost activity
shall be considered in the determination of
the organization's indirect cost rate(s) and,
accordingly, shall be allocated a
proportionate share of applicable indirect
cosls when the following circumstances exist:
(a) The aggregate value of the services is
material:
(b) The services are supported by a
significant amount of the indirect costs
incurred by the orgar.ization;
(cl The direct cost activity ii not pursued
primarily for the benefit of the Federal
Covernment.
(3J In those instances ivhere there is no
basis for determining the fair market value of
the services rendered, the recipient and the
co~nizant agency shall negotiate an
appropriate allocation of indirect cost to the
services.
(4) Where donated services directly benefit
a projpct supported by an award, the indirect
costs allocated 10 the services will be
considered as a part of the lotal costs of the
project. Such indirect costs may be
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I Vol. 45. No, 132 ITuesday, July 8.
reimbursed under the award or used to meet
. cosl sharing or matching requirements.
(5) The value of the dunated services may
be used to meat COllt sharing or matching
requirements under cunditions described in
Attachment E. OMB Circular No, A-l1o.
Where donated services arlt treated as
indirect costs, indirect cost rates will
separate the value of the donations so th..t
.' reimbursement will not be made.
(61 Fair market value of donated services
shall be computed as followll:
(a) Rates for volulIteer :>ervices. Rates for
volunteers shall be consistent with those
regular rates paid for similar work in other
activities of the organization. In cases where
the1dnda of skills involved are not found in
the other activities of the organization. the
1"'dtes used shall be consistent with those paid
for similar work in the lahor market in which
the organization competes for such skills,
(b) Services donated by other
orgunizations. When an employer donates
the sel'Vices of an employee, the,", services
shaU be valued at the employee's regular rata
of pay (exclusive of fringe benefits and
indirect costs) provided the services ere in
the seme skill for which Ihe employee is
normally paid. if tho! services are not in the
same skill for which the employee is normally
paid, fair market value shall be computed in
accordance with subparagraph (a) above,
b, Goods and space.
(1) Donated goods; i.e.. expendable
personal property/supplies. and donated use
of space may be furnished to an organization.
The value of the goods and space is not
reimbursable either as a direct or indirect
cost.
(2) The value of the donations may be used
to meet cost sharing or matching share
requirements under the conditions described
in Attachment Eo OMB Circulsr No, A-no.
The value of the donations shall ge
determined in accordance with Attachment
E. Where donations are treated as indirect
costs. Indirect cost rates will separate the
value of the donations so that reimbursement
will not be mada.
11. Employee morale. healdr. Q/Id welfare.
costs and credits. The costs of house
publications. health or first-aid clinics, andl
or Infirmaries, recreational activities,
employees' counseling services. and other
expenses incurred In accordance with the
organization's established practice or custom
for the improvement of working conditions.
employer-employee relations, employee
morale, and employee performance are
allowable. Such costs will be equitably
apportioned to aU 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 employee welfare
organizations.
12. EIltertainment costs. Co~ts of
amusement. diversion, social activities,
ceremonials. and costs relating thereto. such
85 meals, lodging. rentals, transportation. and
gratuities are unallowable (but see
paragraphs nand 25).
13. Equipment and other capital
expenditures.
a. As used in this paragraph, the following
terms have the meanings set forth below:
H-8
"0 I Notices.
46029
(1) "Equipment" meaDS aD article of
nonexpendable tangible personal property
having a useful life of more than two yearS
and an acquisition cost of $500 or more per
unit An organization may use its own
definition provided that it at least includes aU
nonexpendable tangible personal property as
defmed herein. '
(2) "Acquisition. cost" means the net
invuice unit price of an item of equipment,
Including the cost of any modifications.
attachments, acce5Soriell, or uuxiliary
apparatus necessary to make it usable for the
purpose for which it is acquired. Ancillary
charges, such os taxes. duty. protective in-
transit insurance, freight. and installation
shall be included in or excluded from
acquisition cost in accordance with the
organization's regular written accounting
practices.
(3) "Special purpose equipment" means
equipment which is usable only for rellearch,
medical, scientific. or technical activities.
Examples of special purpose equipment
include mic.roscopes, x-ray machines, surgical
instruments, and spectrometers,
(4) "Ceneral 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 offica
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 cosls
provided that items with a unit cost of $1000
or more have the prior approval of the
awarding agency,
c. Capital expenditures for land or ~
buildings are unallowable as a direct cost
except with the prior approval of the
awarding agency.
d. Capital expenditures for Improvemants
to land, buildings, or equipment which
materially increase their value or useful life
are unallowable as a direct cost except with
the prior approval of the awarding agency,
e. Equipment and other cspital
expenditures are unallowable as indirect
costs. However, see paragraph 9 for
allowability of use allowances or
depreciation on buildings, capital
Improvements, and equipment. Also, see
paragraph 42 for allowabilily of rental costs
for land, buildings, and equipment.
H. Fines and penallies. Costs of fines and
penalties resulting from violations of, or
failure 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 8wardiog agency.
15. Fringe benefits. See paragraph 6. f.
16. Idle facilities and idle capacity.
a. As ulfed in this paragraph the following
terms have the meanings set forth below:
(1) "Facilities" means land and buildings or
any portion thereof. equipment individually
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Fede",\ Reller I Vol. 45. No. tJ2"i~~:'d'Y' July ..loeo I Notice. "
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with establishment or reorganization of an
organization. nre unaUowabla except with .
priur approval of the awarding ilgency.
27. Ol/ertime. extro.pay shift, and
multishift premiums. Premiums for overtime.
extra.pay shifts, and multishift work lire
al!owaula ouly with tha prior approval of the
llwarJing a&ency except:
a. When ntlcessary to cope with
emergenctes, such as those resulting from
a...cidents, natural dJsastera, breakdowns of
equipment, or occasional oplOratillnal
bottlenecks of a sporadic nature.
b. When employtles are performing iridirect
functions such as administration.
maintenance. or accounting.
c. In the performance of tests, laboratory
procedures. or other similar operations which
ilre continuous in nature and cannot
rea~onably be interrupted or otherwise
completed.
d, When lower overall cost to the
Government will result,
29. Pasechargf/;J in professianal journals,
Page chdrges for professional jountal
publications are allowable all a necesSliry
part of rellearch COIllIs. where:
a. The re:laarch papel'll report work
supported by the Government: and
b. The charges are levied Impartially on all
research papers published by the journaL
whether or not by Government.sponsored
authors.
29. Participollt support costs. Participant
support costs are dire.:t costs for items such
:IS stipends or subaistence aliowances, travel
allowances. and registration fees paid to or
on behalf of participants or It:ainees (but not
employees) in connection with meetings.
conferences. symposia. or training projects.
These costs lire allowable with the prior
approval of the awarding agency.
30, Patent costs.
a, Costs of (i) preparing dJsclosures,
reports. and other documents required by the
award and of searchins the art to the extend
necessary to make such disclosures, (Ii)
preparing documents and any other pRtent
costs in connection with the filing and
prosecution of a United state. patent
application where title or royalty.free Iicel13e
is required by the Government to be
conveyed to the Government, and (Hi) general
counseling services relating to patent and
copyright matters. such as advice on patent
and copyright laws, regulations, clauses, and
employee agreements are allowable (but see
parairaph 34),
b. Cost of preparing disclosures, reports.
ami other documents and of searching the art
to the extent necessary to make disclosures.
irnot required by the award. are
unallowable. Casts in connection with (i)
filing and prosecuting any foreilln patent
application. or (ii) i;IUY United Sliltes patent
application, where the award does not
require conveyin~ li:le or a royalty-free
license to the GOVl'mment, are unallowable
(:1lso see paragr::Jph 4:)).
31. Pension piu/ls. See paragraph 6. g,
32. Pla/lt security costs. Necess9ry
exr~nses inl;uired to corziply with
Gvvernment security reljuirements or for
Llcilitie~ protel;tion. including wliges.
uniforms. anJ equipment of personnel are
lillawable.
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33. Preaw&1rd costs. Preaward 'costs ore
those inl:ul'red prior to the effective date of
thll a warrl dir~tly pursuant to the
negotiation and in anticipation of the a ward
wherll such co:>ls ill necllssary to comply with
thtl (Jroposlld delivtlry schedule or period of
performance. Such co~ls are allowable only
to the lllltentlhat they would have bee!!
allu.vabltt if incurred after the dale of tile
aWilrd ~HLd only with thlt written approval of
the aWlU'ding agllllCY. :\::"
34. Professional sIJrvice coSts.
a. Costs of professional and col\:Jultant
servicell rendered by persona who are
members of a"particular profession or posse:l8
a special skilL and who are not officers or
emploYlles of the urganiZiltioa. are allowable.
subjdctto b. Co and d, of this paragraph whi!n
reasonable in reliltion 10 the services
rtlndered !tnd when not cuntingent upon
recovery of the costs from the Government.
b. In de terming the allowlIbility of costs in
a particular c::a:>e. no sin~e factor or any
special combination of factors ia necessarily
determinative. However. the followin~
factors are relevant: "
(1) The nature and scope" olt1i.e servica
rendered in relation 10 the sentce required.
(2) The necessity of contracting for the
service. cOllliidering the organization's
capdbilily in the particular area.
(3) The past plllUern of such coats.
particularly in the years priocto Government
awards. '". __,
(4) The impact of Government awards on
the organization's busines. (i.e~ what new
problems have arisen).
(5) Whether the pruportion of Govel'IlII!elll
work 10 the organization's total business is
such as to influence the organization in favor
of incumng the cost, particularly where the
services rendered are not of a continuing
nature and have little nllalionship to work
under Government grants and contracts.
(6) Whether the service can be performed
more economically by direct employment
rather than contracting. ~.'.-'
(7) The quaUficationa of the individual or
concern rendering' the service and the
customary fees cherged.. especially on non-
Government awards. :."":.:."
(8) Adequacy of the contractual agreement
for the service (e.g~ description of the service.
. estimata of lime required, rate-of'
compensation. and termination provisions).
e. In addition to the factors in paragraph b
above, retainer fee. to the allowable must be
supported by evidence of bona fide services
available or rendered. "" .
d. Cost of legal, accounting. and consulting
services, and relaled costs incurred in
connection with defense of antitrust suitll.
and the prosecution of c1ai.'l1l1 againsl the
Government, are unallowable. Costs of legal.
accuunlir.g and consulting services. and
related costs, incurred in connection with
pillent infringementliligalion. ol'8anizahon
and reorganization. are unallowable unless
otherwise provided for in the award (but see
paragraph 47e).
35. Profits and losses on diflposition of
deprec:iable property or other C4pital assets.
a. (1) Gains and losses on sale. retirement,
- or other disposition uf depreciable property
shull be included in the year in which they
occur as credits or charges 10 cost grouping(s)
H-IO
46031
in which the deprtll;iation applicable to such
property was included. The amount of the
gain or loss to be included as a credit or
chargtl to the appropriate cost grouping(s)
shall b.. the difference between the amount
realized on the property and thtl
und"llreciuled basis of the property.
(2) C,iins and lossea on the disposiUon of
depreciuule property shall nOI be recOgnizlld
as a separala credit or charge under the _.
following conditions. . '
(a) The ilitin or loss is processlld through a
depreciation reserve account and is renectlld
in the depreciation allowable under
paragraph 9.
(b) The property is given in exchlinlle all
part of thlO purchase price of a similar item
and the gain or loss ia laken inlo account in
determining the depreciation cost basis of the
new item.
(c) Aloss results from the failure to .
IDilmtain pemtis:>ible insurance. except as
o,therwise provided in paragraph '!6.a.(J),
(d) Compensation for the Wiil of the
proper:y was provided tlu:ough use
allowances in lieu of depreciation in
accordance with paragraph 9,
(e) Guins and losses arising from mass or
extraordinary sales. retirements. or other
dispositions shall be cOllsidertld on a case-
by-case basis.
b. Gains or losses of any nature arising
f:oom the sale or exchange of property other
than the property covered in paragraph a.
above shall be excluded in computing award
costs. ,
36. Public information service costs. -
a, Public information service costs include
the cost associated with pamphltlts. news
releases, and olhtlr forms of information
services. Such costs are normally incurred to:
(1) Inform or instruct individuals. groups, or
the gene rill publie.
(2) Inlerest Individuals or groups In
participatin~n a service program of the
organization. "
(3) Disseminate the results of sponsored
and nonsponsored activities,
b. Public information service costs ara
allowable as direct costs with the prior
approval of the awarding agency. Such COllts
are unallowable as indirect cost..
37. Publication and printing costs.
a. Publication costs include the costs of
printing (including the processe. of
composition, plate-making. press work.
binding, and the end products produced br-
such processes}. distribution. promotion.
mailing. and general handling.
b. U these costs are not identifiable with a
particular cost objective, they should be
allocated as indirect costs to all benefiting
acli...ltje~ of the urganization.
e. Publication and printing costs are
unallowable as direct costs tlxcept with the
prior approval of the awarding agency.
d. The cost of page charges in journals is "
addre~qed paragraph 28.
38. Rearranf!ement and alteration costs.
COSllj incurred for ordinary or normal
rearranv.ement find alteration of f3cilities are
allowable. Special arrangement and
aheralion costs incurred specifically for the
project are allowable with the prior Rpproval
of the Awarding agency.
39. Reco!1version costs. Cosls incurred in
the re!tloralion or rehabilitation of the
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Federal RI ;ter-/ Vol. 45, No, 132 I Tuesday, Jul} ,
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46033
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computers and wind tunnels, are allowable
provided the charges'for the services mellt
the conditions of either b. or c. of this
paraHfaph and, in addition, take into account.
iJny items of income or Federal fmancing that
qualify as llPplicable credits under paragraph
A.5. of Attachmp.nt A.
b. The costs or such services, whl!n
material, must be charged directly to
applicable awards baSed on actual ullage of_ .
the sllrvices on the basis of a schedule of
rates or elltablished methodology that (i) does
not discriminate against federally supported
activities of the organizlltion, includill8 u88ge
by the organization for internal pUrposes, and
(ii) is designed to recover only the aggregate
costs of the services. The costs of each
sp.rvice shall consillt normally of both its
direct COlltS and its allocable share of all
indirect costs. Advance agreements pursuant
to paragraph A.a of Attachment A are
particularly important in this situation.
c. Where the costs incurred for a service
are not material, they may be allocated as
indirect costs,
46. Taxes.
a. In general, taxes which the organization
is required to pay and which are paid or
accrued in accordance -with generally
accepted accounting principles, and
payments made to local governments in lieu
of taxes which are commensurate with the
local government services received are
'. allowable. except for (i) taxes from which
exemptions are available to the organization
dirlldly or which are available to the
organization based on an exemption afforded
the Government and in the latter case when
the awarding allency makes available the
necessary exemption cerliIlcates, (H) special
assllssments on land which raprellent capital
improvements. and (iii} Federal income taxes.
b. Any refund of taXes. and any payment to
the organization of interest thereon, which
were allowed as award coats, will be
credited either as a cost reduction or cash
refund. as appropriate, to the Government.
47. Termination costs. Termination of
awards generally give rise to the incurrence
of costs, or the need for special treatment of
costs. which would not have arisen had the
award not been terminated. Cost principles
covering these items are set forth below.
They are to be used in conjunction with the
other provisions of this Circular in
termination situations.
a. Common items. The cost of items .
reasonably usable on the organization's other
work shall not be a1\owable unless the
organization submits evidence that it would
not rlltain such items at cost without
sustaining a los~. In deciding whether such
items arp. reasonably usable on "ther work of
the organization. the awarding agency should
consioer the organization's plans and orders
for current and scheduled activity.
Contemporaneous purchases of common
item~ by the organization shall be regarded
as evioence that suo;h items are reasonably
usable on the organization's other work. Any
6Ccept<U1ce of common items as allocable to
the terminated portion of the award shall be
lImited to the extent that the quantities of
such items on hano. in transit. and on order
art! in excess of the reasonable quantitative
requirem!!nts of olher work.
b. Costs conlinuiJI,IJ after termillation.lI in
a particular calle. de~pile all reasonable
efforts by the organl~tion. certain costs
cannot be discontinued ~diately after the
effective date of termination. lluch costs are
generally allowable within the limitations set
forth in this Circular. except that any such
costs conlinuinll after tennination due to the
nelllillomt of willful failure of the organization
to discontinue sucb costs shall be
unallowable.
c. Loss of UIff1ful value, Loss of useful value
of specialtcoling, machinery and equipment
which WllS not charged to the award as a
capital expenditure is generally allowable if:
(1) Such specialtcoJing. machinery, or
equipment is not reasondbly capable of use in
the other work of the organization.
(2) The interest of the G.overnment is
protected by transfer of litle or by other
means deemed appropriate by the awarding
agency:
d. Rental costs, Rental costs under'
unexpired lllases are generally allowable
where clearly shown to have been
reasonably necessary for the performance of
the terminated award less the residual value
of such le8lles. if (i) the amoUnt of such rental
claimed does not exceed the reuonable use
value of the property leased for the period of
the award and such further period as may be
reasonable. and (ii) the organization makes
all reasonable efforts to terminate. assign,
settle, or otherwise reduce the cost of such
lease, There also may be included the cost of
allerations of such leased property, provided
such alterations were necessary for the
performsnce of the award. and ofreasonltble
restoration required by the provisions of the
lease,
e. Settlement expenses.. Settlement
expenses including the following are-
generally allowable:
(1) Accounting. legal. clerical, and similiU'
costs reasonably necessary for.
(a) Th&preparelioD and presentation to
awarding agency of settlement claims and
supporting data with respect to the
tenninated portion of the award. unless the
tennination is for default. (See paragraph 4.a.
of Attachment L. OMB Circular No.. A-llO;
and -
(b) The tennination and settlement of
subawards. '
(Z) Reasonable cosls for the storage,
tranllportation. protection. and disposition of
property provided by the Government or
acquired or produced for the award: except
when grantees are reimbursed for disposala
at a predetermined amount in accordance
with AII"chment N of OMB Circular A-l1o.
(3) Indirect costs related to salaries and
wa~es incurred a8 settlement expenses in
subparagraph. (1) and (2) of this paregraph.
Normally. such indirect costs shall be limited
to frinlle benefits. occupancy cost. and
immediate supervision.
f. Claims under subowaros. Clajms under
subawards. including the allocable portion of
claims which are conunon to the award, and
to other work of the organization are
generally allowable. An appropriate share of
the organization's indirect expense may be
allocated to the amount of settlements with
subcontractorlsubgrantees; provided that thll
amount allocated is otherwise consistent
H-12
with thlt basic guidelines contained in
Attachment A. The indirect expense so
allocated shall exclude the Bame and similar _
costs claimed directly 01' indirectly as
seulernent expenses.
48. TrlJJiling and educotion co&l8..
a. Costs of preparation and maintenanca oC
a pro~am of instruction including but not
limited to oll-thl1-job, c1assrooul. and
apprenticeship training. designed to increase
the voc'ltional effectiveneu of employees,
including training materials, textbooks.
. salar:e.s or wages of trajnees (l!ltcluwng
overtime compellslition which might arise
therefrom). alld Ii) salaries of the director oC
training and staff when the trainins program
is conducted by the organization; 01' (ii)
tuition und fees when the 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,
includins that provided at the organization'.
own facilities. are BlIowlible only when the
course or degree pursued is relative to the
field in which the employee i. now wOI'king _
or may reasonably be expected to work, and
are limi:ed to:
(1) Tr~ining materials.
(2) TextboOks.
(3) Fees charges hy the educational
ins ti tution.
(4) Tuition charged by the educational
institution, or in lieu of tuition, instructors'
salaries and the related share oC indirect
costs of the educational institution to the
extent Ihat the s"m thereof is not in l!XClIllS of
thetuilion which would have ben paid to the
participating educational institution.
(5) Salaries and rp.lated costs of instructors
who are employees of the orgllIli2ation.
(a) Straight-time compeo.ati9Q of Ilach
employee for time spent allendlng classes
during working hours not in excess of 158
hours per year and only to the exlent that
circumstance. do not permit the operation of ".
classes 01' attendance at classes alter regular
workina hours; otherwise such COmpel1Blltion
is unallowable.
c. Costs oftuition. fee.. lniining materials.
and textbooks (but not subsistence. salary, or
any other emoluments) in connection with
full-time education. including that provided at _
the organization's own facilities, at a
postgraduate (but not undergraduate) college
level. are allowable only when the course or
degree pursued is related to the field in which
the employee ill now working or mdY
reasonably be expected to work. and only
where the costs receive the prior apPI'oval oC
the awarding agency. Such costs are limited
to the costs attributable to e totel period Dot
to exceed one school year for each employee
so trained. In unusual caMS the period may
be extended.
d. Cosls of attendance of up to 16 weeks
per employee per year at specializeu
programs specifically designed to enhance
the effectiveness of executives or m"n3:,<ers
or to prepare employees for such posilions
are allowable. Such cosla includll enroUmllnt
fees. training materials. textbooks and
related charges, employee..' salaries.
sub,'li~tence. and travlll. CoalS allowtlble
under this paragraph do not include those for
courSI1S that are part of a degre&-oriented
~