AGREEMENT FUNDED UNDER THE CLEARWATER COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM (2)
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AGREEMENT FUNDED UNDER
THE CLEARWATER COMMUNITY DEVELOPMENT
BLOCK GRANT PROGRAM
THIS AGREEMENT is entered into as of the 1st day of October, 1988, by the
CITY OF CLEARWATER, Florida, a political subdivision of the State of Florida,
hereinafter referred to as the "CITY", and YOUNG WOMEN'S CHRISTAIN ASSOCIATION
OF ST. PETERSBURG, FLORIDA, further identified in Appendix A, hereinafter
referred to as the "PSA" , and included the Appendices attached hereto.
WHEREAS, the City has agreed with the United States Department of Housing
and Urban Development to conduct a Community Development Program, hereinafter
referred to as the "Program", with federal financial assistance under Title I
of the Housing and Community Development Act of 1974, as amended, hereinafter
called the "Act", and
WHEREAS, the City of Clearwater Planning & Development Department,
hereinafter called the "Department", will act in behalf of the City in conducting
the Program, and
WHEREAS, the PSA provides a program as identified in Appendix A of benefit
to low and moderate income residents within the City of Clearwater and proposes
to perform the work and carry out the specific services as identified in Appendix
A hereinafter referred to as the "Project", and desires federal financial
assistance through the City to effect this proposal, and
WHEREAS, the City finds the project to be meritorious and in fulfillment
of the purposes of the Act;
THEREFORE. the parties agree as follows:
1. The PSA shall, in a satisfactory and proper manner as determined by
the Department, conduct the Project outlined in Appendix A.
2. The term of this agreement shall commence on October I, 1989, and
terminate on September 30, 1990, unless earlier cancelled as provided herein.
The agreement may be extended for up to one additional year upon the request of
the PSA and the written authorization of the City Community Development Manager.
The need and merit shall be at the determination of the Manager. The Department
may issue written or oral instructions to clarify any other details or provisions
of this Agreement. Such instruction must be within the intent of the project
and not be of such nature to affect cost or period of performance.
3. The City representative with the PSA as regards conduct of services
under this contract shall be the Community Development Manager and the PSA's
services shall be carried out under the supervision of the Agent as identified
in Appendix A.
4. The PSA shall not exceed its budgeted amount and shall use the funds
in accordance with the award to be paid with Community Development Funds included
in Appendix B. Funds shall not be obligated when payment has been suspended or
terminated pursuant to paragraph 19 hereof. Any 'funds which the Department
determines were not properly expended shall be refunded to the City.
5. The PSA shall comply with the provisions of OMB Circular A-lID.
provided in Appendix G, and with the provisions of OMB Circular 122, provided
in Appendix H, or the appropriate successor documents of these documents. The
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PSA shall permit the City to audit the PSA's financial operation including but
not limited to compliance with applicable provisions of Federal law and
regulations. All PSA financial records relating to the Project are subject to
review by the City.
6. All subcontractors under this agreement shall be approved by the City.
7. All purchases of consumable, capital equipment and services shall be
in conformity with the Procurement Standards set forth in OMB Circular A-llO,
Attachment O. Accountability for project property and equipment shall be in
accordance with the requirements therein set forth.
8. The City agrees to make payment of budgeted costs on a reimbursement
basis. Requests for payment shall be as specified in Attachment B. No advance
payments shall be made to the PSA. All costs and invoices for request for
payment shall be supported by properly executed payrolls, time records, invoices,
contracts, or vouchers, or other official documentation evidencing in proper
detail the nature and propriety of the charges. All checks payrolls, invoices,
contracts, youchers, orders or other accounting documents pertaining in whole
or in part to the agreement shall by clearly identified and readily accessible.
Final request for reimbursement hereunder shall be submitted within 30 days after
completion of all services to be performed by the PSA and the City shall not be
responsible for payment of any charges, claims or demands hereunder not received
within said thirty day period.
9. The PSA shall upon the expiration of this agreement transfer to the
city any CDBG funds on hand and any accounts receivable attributable to the use
of CDBG funds. Program income funds are excluded from this provision or and are
provided below.
Program income funds shall be retained by the PSA so long as the activities
that will be undertaken with the program income are the specific activities that
meet the provisions of this agreement. These funds shall be adjusted by the City
according to the principles described in paragraphs (b) (2) (i) and (E) of Section
570.504 which states that:
(1) Program income in the form of repayments to, or interest earned on
a revolving fund as defined in Section 570.500(b) shall be substantially
disbursed from the fund before additional cash withdrawals are made from the
U.S. Treasury for the same activity.
(2) Substantially all other program income shall be disbursed for eligible
activities before additional cash withdrawals are made from the U.S. Treasury.
10. The City shall retain custody upon termination this agreement of any
and all property purchased with CODDnunity Development Funds. "Property" as used
in this Paragraph shall mean nonexpendable tangible property valued at $200 or
more with a remaining life expectancy of one year or more. The PSA shall retain
custody of property acquired with federal funds so long as the property is used
for the purposes described in Appendix A. When no longer used for such purpose,
the City shall assume custody of the property upon written notice to the PSA.
Upon purchase and receipt of property, the PSA shall submit to the Department
a Property Receiving Report. Stolen, lost or returned property shall be reported
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or immediately upon termination of this agreement, the PSA shall submit in a
Property Report a physical inventory of all property purchased with Community
Development Funds. The report shall also contain a verification of the existence
and current used and location of the property, and, if applicable, the continued
need for the property. No real or personal property or custody thereof purchased
with such funds shall be disposed of, transferred, assigned, or loaned by the
PSA without prior written consent of the City.
11. For any real property under the PSA's control that was acquired or
improved in whole or in part with CDBG funds in excess of $25,000 must;
(1) Be used to meet one of the national objectives in Section 570.901
until five years after expiration of the agreement, or for such longer period
of time as determined to be appropriate by the City; or
(2) Disposed of in a manner that results in the recipient's being
reimbursed in the amount of the current fair market value of the property less
any portion of the valued attributable to expenditures of non-CDBG funds for
acquisition of, or improvement to, the property. (Reimbursement is not required
after the period of time specified in paragraph (b)(8)(i) of Section 570.503..~
12. Nothing in this agreement shall be construed to permit invasion of
the privacy of individuals who are served by the project, nor shall this
agreement be construed to require the PSA to publish or release information to
third parties which would invade the privacy of such individuals. Information
obtained by the Department as required by this agreement shall not be used or
disclosed in such a way as to invade individual privacy and client relationships,
unless Florida law pertaining to public records requires disclosure of said
information.
13. The PSA shall obtain prior written approval by addendum to this
agreement for any of the following changes:
a. Substantial changes in the project work plan.
b. Changes in any budget line item.
14. The PSA agrees to fully participate in the implementation and
maintenance of an evaluation system to continually monitor the project. This
shall include, but not be limited to, quarterly (or more frequent) reports on
progress toward the goals listed in Appendix A, periodic submission of data
reports which will be used by the Department for inclusion in the Annual Grantee
Performance Report, periodic monitoring visits by the Department for conformance
with this agreement, and continuing assessments of performance hereunder. PSA
agrees to comply with evaluation and information requirements of the Department.
A final report shall be submitted by the PSA within 30 days after the end of the
contract term. This final report shall consolidate reporting of all project
participants.
15. PSA shall establish and maintain on an accrual basis an accounting
system in accordance with the Standards of Grantee Financial Management System
as set forth in OMB Circular A-lID or the appropriate successor document and in
accordance with generally accepted accounting principals and standards where
these principals and standards are not in conflict with A-lID or its successor.
PSA agrees to modify or correct said systems in accordance with he City's
requirements.
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16. PSA shall maintain such records and accounts as are deemed necessary by
the city to assure a proper accounting for all project funds. All such records shall
be available for audit, inspection or copying purposes at any time during normal
business hours and as often as the City, HUD, and/or representatiyes of the
Comptroller General of the United States, or other federal agency, may deem
reasonably necessary. Such records shall be retained for such period as required
by applicable laws and regulations and may thereafter be destroyed only with the
prior written approval of the City. Such records shall include financial records,
audits, supporting documents, statistical reports and client files. PSAwill comply
with such additional requirements as to maintenance of records as the City may
request in writing. In the event the PSA cannot continue to be responsible for
maintenance of the records, then the City shall be so notified in order to take
custody of the records. The city may, at any time, on written notice to the PSA take
custody of any and all records established under this Agreement.
17. The PSA shall hold and save the City, its officers, agents, and employees
harmless from liability of any nature or kind, including costs and expenses, for or
on account of any suits or damages of any character whatsoever resulting from
injuries or damages sustained by any persons or property resulting in whole or in
part from the negligent performance or omission of any employee, agent or
representative of the PSA.
18. The PSA shall not assign any interest in this Agreement without the prior
written consent of the City.
19. The City may suspend, withhold, or terminate payment of the project, in
part, for cause or convenience. Cause shall included the following:
Use of funds that does not follow project guidelines.
Failure to comply with any term or condition hereunder.
Refusal to accept conditions imposed by HUD.
Refusal to accept conditions imposed by.' the City.
Submittal of reports which are incorrect or incomplete in any material
respect.
If carrying out this Agreement is rendered impossible or
infeasible for any reason including changes in law or the
unayailability of HOD funds necessary for continuation.
Convenience shall be according to the regulations in 24 CFR 85.43 and
85.44.
whole or in
a.
b.
c.
d.
e.
f.
g.
If the City suspends payment, it shall advise the PSA and specify in writing the
actions that must be taken as a condition precedent to the resumption of payment and
specify a reasonable date for compliance.
20. Both parties will use their best efforts to ensure that services under
this Agreement are provided so as to best meet the needs of residents with priority
to those residents who reside in the Community Development target areas. The PSA
shall make eyery effort to assure that a minimum of two-thirds of those persons
receiving services hereunder are low and moderate income.
21. No person with responsibilities in the operation of the project will
discriminate with respect to any project participant because of race, color,
national origin, or sex. Nor shall any participant be excluded from participation
in, be denied of, or be subjected to discrimination under any program of activity
funded in whole or in part with Community Development Funds because of race, color,
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national origin, or sex. Nor shall any participant be excluded from
participation in, be denied of, or be subjected to discrimination under any
program of activity funded in whole or in part with Community Development Funds
because of race, color, national origin or sex, as set forth in Other Program
Requirements in Appendix D, (CFR 570.601).
22. No resources provided through this Agreement shall be used to have
the primary effect of advancing religion, nor shall any goods or services
provided through this Agreement be provided in a pervasively sectarian manner,
as required by the First Amendment of the Constitution of the United States.
All activity under this Agreement shall be consistent with specific conditions
for religious organizations as established by the United States Department of
Housing and Urban Development.
23. The PSA will establish safeguards to prohibit employees from using
their positions for a purpose that is or gives the appearance of being motivated
by a desire for private gain for themselves or others, particularly those with
whom they have family, business or other identifiable ties. Prior to requesting
any continued project funding beyond the term covered by this Agreement or for
a new public services not covered by this Agreement, the PSA shall attempt to
secure other local, state or federal funding and/or private funding for such
project. The PSA will not as a result of receiving funding for the Project
reduce its support for other similar services already being provided by the PSA
in the area of its operation, and will, in fact, affirmatively seek additional
assistance and support from other sources for increasing services where needs
demand such increase. The PSA will not use these funds for publicity or
propaganda purposes designed to support or defeat legislation pending before
federal, state or local governments.
24. The PSA shall comply with the requirements of Section 3 of the
Housing and Urban Development Act of 1968, as amended, and the HUD regulations
issued pursuant thereto, attached hereto as Appendix E.
25. The PSA will comply with Equal Employment Opportunities Executive
Order 11246, as amended, attached hereto as Appendix F.
26. The PSA will comply with applicable federal law and regulations,
including but "not limited to:
National Environmental Policy Act of 1969;
Flood Disaster Protection Act of 1973;
HOD Implementation of the Lead-Based Paint Poisoning Prevention Act;
Clean Air Act;
Historic Preservation Requirements of P.L. 89-656
Archeological and Historic Preservation Act of 1974;
Executive Order 11593;
Architectural Barriers Act of 1968;
Hatch Act;
Federal Water Pollution Control Act;
Federal Labor Standards provisions and the Davis-Bacon Act;
The Civil Rights Act of 1964;
National Flood Insurance Program;
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all as amended from time to time and in effect during the term this Agreement.
IN WITNESS WHEREOF, the parties hereto have caused this agreement to be
executed as of the day and year first above written.
YOUNG WOMEN'S CHRISTION ASSOCIATION OF
ST. PETERSBURG, FLORIDA,
By a-~
~ President
ATTEST:
*?L/f ~
Secretary
CITY
OF CLEARWATER, FLORIDA
--a /Y. -zJlL-
Ron .H ,,, Rabun
" 'C~t..Y MaI;l.ager
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By
Rita Garvey
Mayor-Commissioner
ATTEST:
Approved as to form & correctness:
/;--Cynctie G"oud~3~"-':
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Agency: YWCA of St. Petersburg
Year: 1989 - 1990
APPENDIX A
Identification of ARencv and Suecific Services to be Provided
AGENCY
Name:
Young Women's Christian Association of St. Petersburg,
Florida
Legal classification:
A non-profit corporation organized and existing under
the laws of the State of Florida.
Principal Office:
655 Second Avenue South, St. Petersburg, Florida 33701
Mailing Address:
814 Franklin Street, Clearwater, FL 34616
Agent:
Gwen Reese-Peaten, Program Director
813-461-2997
PROGRAM OF AGENCY
The YWCA is a multi-purpose human service agency providing a variety of
educational, developmental, and social services for all ages, races, and
religious backgrounds. The Project H.E.L.P. (Health, Education and Life Skills
for Pregnant Adolescents). Program provides coordination for delivery of health
education and sociaJ, services to pregnant adolescents in Pinellas County,
especially remediation and tutorial work to pregnant and parenting adolescents
who have dropped out of school or who have been identified as potential dropouts.
It provides services to the adolescent, to the infant and to the putative father.
It provides educational activities addressing responsible sexuality and
parenting.
SPECIFIC SERVICES TO BE PROVIDED URDER THIS AGREEMENT
Provide plumbing for hot and cold water to the nursery. Proyide for "hook-up"
of a washer and dryer. Provide such other building improvements as are needed
and are possible within the available funding.
SCHEDULE
Improvements will begin no later than the later of November 1, 1989, or 1 month
after the full execution of this Agreement. The improvements will be completed
within 2 months of the beginning of the improvements, unless extended by written
authorization of the City Community Development Manager.
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Agency: YWCA of St. Petersburli{
Year: 1989 - 1990
APPENDIX B
Proiect Award
Facility improvement support of up to $2,500.00 will be proYided.
TOTAL $ 2,500.00
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APPENDIX C
METHOD OF PAYMENT
All payments shall be on a reimbursement basis only.
All requests for reimbursement shall be supported by proper invoices, payrolls,
checks, receipts, and other documentation as requested.
Any program income shall be submitted to the CITY through the DEPARTMENT at least
Quarterly. Fees collected, if any, shall be reported but are not to be construed
as program income.
Requests for reimbursement shall not be reduced by any program income received.
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subpart K-0lher Program
Requlremenls
I 570.&00 G,,~ral
(u) Seclion l04(b) t' the Act provides
thot an)' grant under tieclion 106 of Ihe
Acl shall be fr. .c' nly if the grantee
certifies 'to the slItisfoction of the
Secreta'ry, among other things, lhallhe
grgnl "wilf lie.conducted and
administered in conformity wilh Pub. L
M-352 and Pub. L. 90-264," and, further.
thai the granlee "will comply with Ihe
olher provisions of Ihis litle and with
other applicable laws," SeclioD l04(d)(l)
of the Acl requires tha i the Secretary
dt:lermine with respect 10 granls made
pursuant to section l06(b) (Entillement
Grants) and 106(d)(211B) (Hun-
Administered Small Cilies Grants), al
leasl on an annual basis, among other
thing!. "whether the grantee has carried
outlits] certificalions in compliance
with the requirements and the primary
objeclives of this title and with other
applicable laws' . . ." Certain other
statutes are expressly made applicable
to Activities assisted under the Act by
the Acl itself. while other laws not
referred 10 in the Act may be applicable
to such activities by their own lerms.
Certain statutes or Executive Orders
which may ue applicable 10 activities
assisted under the Act by their own
lerros are administered or enforced by
guvernmenlal departroenu or agencies
other than the Secretary or the
Departmenl This Subpan K enumerates
laws which the Secretary wiD treal as
applicable to grants made under section
106 of the Acl, other thai! grants 10
\ APPENDIX D
oTJe~' PROGRA}1 REQUIRE~ffiNTS
States made pursuant 10 seclion l06(d)
of the Act. for purposes of the
determination! described above 10 be
made by the Secrelary under section
l04(d)ll) of Ihe Ac!. including slntules
expressly made applicable hy the Act
and certain other statutes IInd Executive
Orders for which the Secrelary has
enforcemenl responsibility. The absence
of men lion herein of any other statute
for which Ihe Secretary docs not have
direct enforcement responsibility ie not
intended to be loken as aD indication
thllt, in the Secrelllry's opinion, such
statute or Executive Order 15 not
spplicable to octivilies assisted under
the Act. for laws which the Secretary
willlreat os applicable to gronte made
10 States under section 100(d) of the Act
for purposes of the delermination
required to be made by the Secretory
pursuant to section l04[d)lZ) of the Acl,
see ~ 570,496.
[b) This Subparl also sets forth cenain
additional program requirements which
the Secretary has determined 10 be
applicable to grants provided under the
Act as a mailer of administrative
dlsc~etion.
(c) In addilion to granls made
pursuant to section 100(b) and
100(d)(Z)(B) of Ihe Acl (Subparls D and F
of this Pan. respecti)'ely), the
requirements of this Subpart K are
applicable to grants' made pursuanl to
sections 107 and 119 of the Acl
[Subparts E and G. respectively).
~ 570.601 Pub. L 8&-352 and Pub. L W-
284; Executive Order 1106:1-
Section l04(b) of the Act provides thai
any grant under section 100 of the Act
shall be made onlv if the grantee
ce'rtifies to the satisfaction of the
Secretary that the grant "will be
conducted and administered in
conformity with Pub. L 88-352 and Pub.
L. 90-284." Similarlv. sectioD 107
provides that no gr~rit may be made
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under thai .eclion (Secrelary'.
Discretionary Fund) or section l1g
(UDAG) without .atisfllctory assurances
10' the same dfec\.
(a) "Pub. L ~5Z" refer. \0 Tille VI
of the Civil R~hls Act of 1004 [U U.S.C.
2(XX><1 elleq.), which provides thai no
person In the United States shall on the
ground of race, color, or national origin,
be excluded from ponicipntion In, be
denied the benefits of. or be suujecled to
discrimination under any program or
sctlvity receiving Federal financial
a,sistance. Section 502 of the Civil
Rights Act of 1004 directs each Federal
depnrtmenl and agency empowered 10
extend Federol financial assistance to
any program or activity by way of grant
\0 effectuate Ihe foregoing prohiuition
by issuing rules, regulalions, or orders of
generol applicability which shell be
consistenl wilh schievement of the
'. &Intute authoritill1l the financial
assistance. HUO regulotlona
implementing the requirements of Tille
Vl with reepcctto HUD programs are.
contained in 24 erR Parll.
[b) "Pub. L 9O-ZM" refers to Tille VlIl
of the Civil Righls Act of 1%8(42 U.S.C.
3U01 ~l Geq.). popularly known IlS Ihe
Fair Housing Act. which provide! that it
is the policy of the United States to
provide. ",'ithin comtilulional
limitations, for fair housing throughoul
the United States and prohibits any
penon from discriminating in Ihe sale or
rental of housing, the financing of
housing, or the provision of brokerage
services. Including in any WilY making
unavailable or denying a dwelling to
any.penon. because of race, color,
religion, sex. or national origin. Tille
VIll further requires the Secretary to
administer the programs and aClivities
relating to housing and urban
development In a manner affirmalively
to further the purposes of Title VIII.
Pursuanl to this statutory direction. the
Secretary requires that grantees
adminisler all programs and actiyities
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related to housing nnd community
developrnl!nt in e manner to
affirmtltively lurther Illir housing.
(c) Executive Order 11003. as
amended by Executive Order 12259.
directi the Deportment to toke all ;!ction
necessary and appropriate 10 prevent
discrimination because 01 race. color.
religion (creed). sex. or national origin.
in the sole. leasing. rental. or other
disposilion 01 residentiul property Bnd
reloted lacilities (including land 10 be
developed lor residential use). or in the
use or occupo ncy thereof. il such
property ond relnted locilities nre.
umong other things. provided in whole
or in part with the aid 01 loans.
advances. grants. or contributions
f1Rrce\i.lo be mnde by the Federul
Government. HUD rcgulutions
implementing Excculive Ordcr 11003 are
contained in 24 efR Pnrtl07.
~ 570.602 Secllon 109 of thl Act.
(al Section 1~ 01 the Act requires that
no person in the United Slales shall on
the ground of rnce. color. national origin
or sex. be excluded Irom participation
in. be denied the benefits of. or be
subjected to discrimination under. any
program or activity lunded in whole or
in part with community development
lunds made available pursuant to the
Al:1. For purposes 01 this seclion
"program or activit"" is defined as any
lunction conducled by an identifiable
administralive unit 01 the recipient. or
byony unit of governme~t. ~ubrecipienl.
or private coniractor receiving
cOffilOunit.y developmenl lunds or loans
Irom the recipient. "Funded in whole or
in part wilh communily develcpment
Cunds" means that community
development Cunds in a:1Y amQunt in the
form oC grants OJ proceeds from HUD .
guaranteed loans have beeD-.transferred
by the recipient or B subrccipienl to an
identifiable administrative unit and
disbujsed in a program ~r activity.
(b) Specific discriminator)' octions
prohioited and correctil'e actions.
(ll A recipient may not. under any
program or activity to which the
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regulations oC Ihis Part may apply
directly or Ihroufh conlractus: or other
Ilrranllrments. on Ihe ground of rllce.
color. nu tional origin. or sex:
(i) Deny allY facililies. serviccs.
financiul /lid or olher lJcncfil8 provided
under lhe program or activity.
(ii) Provide nny lacilities. 8ervices.
linancilll Ilid or olher lJenclils which Bre
different. ur nre provided in II different
Corm from thuI provided to others under
the program or aclivily.
(iii) Subject to se.gregated or 8epnrate
lre(llmenl in nny lucility in. or in nny
muller oC process rclal<<;d to receipt oC
any service or benefit under the progrum
or activily.
(iv) Restrict in IIny wny Dccess to. or
in lhe enjoyment 01 ony advanlage or
privilege enjoyed by olhers in
connection with lacililies. services.
financial Bid or other benefits under the
program or activity.
(v) Treat an individual differently
from olhers in delermining whether the
individual ea tisCies any ndmission.
enrollment. eligibility, membership. or
other requirement or condition which
the individunl must meet in order 10 be
provided any facilities. services or olher
beneCit prodded under the program or
activitv.
(vi) Deny an opporlunity to parlicipa te
in a program or activily as an employee.
(2) A recipient may not ulilize criteria
or methods of administration which
have the effect of subjecting individuals
10 discrimina tion on lhe basis of race.
color. nCllional origin. or sex. or have the
effect of defealing or subSlanlially
impairing accomplishment of the
objectives of the program or activily
wilh respect to individuals of a
particular race. color. national origin. or
sex.
(3) A recipient. in determining the sile
or localion of housing or Cacilities
provided in whole or in part with funds
under this part. may not make selections
of such site or lucation which have Ihe
effect oC excluding individuals Crom,
denying them Ihe benefits 01. or
subjecting them to discrimination on the
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ground oC ruCC. color. national origin. (If
sex: or whir.h hAve the purpo~e or effecI
of dcfratinR or substantially impairing
the acr.umplishment 01 the objectives cI
the Act /lnd of Ihis seCtion,
(4)li) In ndministering B program or
Rctivity Cunded in whole or in pari wilh
CDrlG fllnds regarding which the
recipient hos pre\'iously discriminated
ogainst per60ns on the ground oC race.
color. nationul origin or sex, the
recipient must tuke nffirmative aclion to
overcome the cffects 01 prior
discrimination.
(ii) EI'cn in lhe nbsence oC 6uch prior
discrimination. a recipient in
administering a program or nctivity
fllnded in whole or in part wilh CDOG
funds should tuke affirmalive action to
ovcrcome the effects oC conditions
which wOllld otherwise result in limiting
participatiun by persons of a particular
race. color. nalional origin or sex.
Where previous discriminatory praclice
or usage tellds. on the ground 01 race.
color. national origin or sex, to exclude
individuals Crom participation in. to
deny Ihem Ihe benefits of. or to subject
Ihem to discrimina tion under any
program or activity to which this part
applies. the recipient" has an obligc:lion
10 take reasonable action to remove or
overcome the consequences of the prior
discriminatory prllctice or usage. imd 10
accomplish the purpose of the Ac\.
(iii) A recipienl shall not be prohibited
by this part from laking any action
eligible under Subpart e to ameliorate
an imbalance in services or facilities
provided to any geographic area or
specific group 01 persons within its
jurisdiclion. where the purpose of such
action in to overcome prior
discriminalory practice or usage.
(5) Notwithstanding anything to the
contrary in this seclion. nothing
contained herein shall be construed to
prohibil any r~cipient from mainlaining
or construcling separate living facilitie~
or rest room facilities Cor the different
sexes. Furlhennore. selectivity on the
basis oC sex is not prohibited when
institutional or cllstodial services can
"
\ APPENDIX E
I SECTION 3 CLAUSE
.1
TilE FOLLO'WING SECTION 3 CLAUSE SHALL l!E INQ..UDED IN ALL CONTMCTS FOR 'WORK IN
CONNECTION 'WITH A SECTION 3 PROJECT:
A. The ~ork to be performed under this contract is on a project assisted
under a program providing direct Federal financial assistance from
the Department of Housing and Urban Development and is subject to the
requirements of Section 3 of the Housing and Urban Development Act of 1968,
as amended, 12 U.S.C. 170u. Section 3 requires that to the greatest extent
feasible opportunities for training and employment be given lower income
residents of the project area and contracts for ~ork in connection ~ith the
project be a~arded to business concernS ~hich are located in, or o~~ed in
substantial part by persons residing in the area of the project.
B. The parties to this contract ~ill comply ~ith the provisions of said Section 3
and the regulations issued pursuant thereto by the Secretary of 1I0using and
Urban Development set forth in 24 CFR, and all applicable rules and orders of
the Department issued thereunder prior to the execution ot' this contract. The
parties to this contract certify and agree that they are under no contractural
oc other disability ~hich ~ould prevent them from complying ~ith these
requirements.
C. The contractor ~ill send to each labor organization or representative of
~orkers_~ith ~hich he has a collective bargaining agreement or other contract
of understanding, if any, a notice advising the said labor organization of
~orkers' representative of his commitments under this Section 3 Clause and
shall post copies of the notice in conspicuous places available to employees
and applicants for employment or .t raining.
D. The contractor ~ill include this Section 3 Clause in eveD' subcontract for
~ork in connectiqn ~ith the project and ~ill, at the direction of the
applicant for or recipient of Federal financial assistance, take appropriate
action pursuant to the subcontract upon a finding that the subcontractor is
in violation of regulations issued by the Secretary of Housing and Urban
Development, 24 CFR. The contractor will not subcontract .....ith any subcontractor
where it has notice or k.no~ledge that the latter has been found in violation 'of
regulations under 24 CFR, and will not let any subcontract unless the
subcontractor has first provided it .....ith a preliminary statement of ability to
comply ~ith the requirements of these regulations.
E. Compliance with the provisions of Section 3, the regulations set forth in 24 CFR,
and all applicable rules and orders of the Department issued thereunder prior to
the execution of the contract, shall be a condition of the Feder!l financial
assistance provided to the project, binding upon the applicant or recipient for
such assistance, its successors, ~nd assigns. Failure to fulfill these
requirements shall subject the applicant or recipient, its contractors and sub-
contractors, its successors, and assigns to those sanctions specified by the
grant or loan agreement or contract through which Federal assistance is provided,
and to such sanctions as are specified by 24 CFR 135.
E-l
NOT!CE
APPENDIX F
01._-c?UIREMENT FOR A.FTIR'1ATIVE ACT)
ENSURE EQUAL D1PLOYMENT OPPORTUN! TY
TO
(EXECUTIVE ORDER l1246)
1. The Offeror's or Bidder's attention is called to the "Equal Opportunity
Clause" and the "Standard Federal EquAl Dnployment Opportunity ConstrUc-
tion Contract Specifications" set forth herein.
2. The goals and timetables for minority and female participation, expressed
in percentage terms for the Contractor's aggregate workforce in each
trade on all const-~ction work in the covered area, are as follows:
A. Goals for Female Utilization, All Trades:
AREA COVERDJ
Goals for Women apply nationwide.
GOALS AND'TIMETABLES
Timetable
Goals
(percent)
From Apr. I, 1978 until l".a..r . 31, 1979.... 3.1
From Apr. 1, 1979 until Mar. 31, 1980 . . . . 5.1
From Apr. 1, 1980 until 1'13:::-. 31, 1981. . . . 6.9
B. Goals for ~~noritv Utilization:
TA.'1PA-ST. PETERSBURG, FLA., ~
Area coverec: P~llsborough, Pasco, and Pi~ellas
Coul1ties, Fla.
Goals and Timetablesl
Trade
Goal
(pe:::-cent)
..
All. . . . . . . . . . . . . . . . . . . . . . _ . . .
17.9
1For the life of the project.
~nese goals are applicable to all the Contractor's const-~ction work
(whether or not it is Federal or federally assisted) performed in the
covered area.
The Contractor's coopliance wi~ the Executive Order and L~e regulations
in 41 CTR Part 60-4 shall be based on its i~p1eroentation of L~e Equal
Opportunity Clause, specific affi=mative action obligations reauired by
F-l
"
I
the specifications le1: fort..'i in 41 CFR 60-4.3 (a), arl "ts efforts to :neet
the goals established for the geographical area .....he - t.'1e contract
resulting from this solicitation is to be perfonned. The ho\.:..:"s of minority
and female employment and training must be substantially ~~iform throughout
the length of the contract, and in each trade, and the contractor shall
c.a.ke a good faith effort to employ D'.inorities and ....omen evenly on each of
its project.S. The transfer of minori t:y or female employees or trainees
from Contractor to Contractor or from project to project for t.'1e sole
purpose 0f meeting the Contractor's goals shall be a violation of the
contract, the Executive Order and the regulations in 41 CYR Part 60-4.
Compliance ....ith t..'1e goals ....ill be measured against the total ~ork ho\.:..:"s
performed.
3.
TI1e Contractor shall provide ~Titten notification to the Director 0: t.'1e
Office of Federal Contract Compliance Programs ....i thin 10 .....or}~ing days of
a~ard of any constrUction subcontract in excess of $10,000 at any tier
for constrUction work under the contract resulting from u)is solicitation.
The notification shall list t.'1e name, address and telephone number of the
subcontractor; employer identification number; estimated dollar amount of
the subcontract; estimated starting and completion cates of the subcontractl
and the geographical area in ....hich the contract is to be perfo~ed.
4. 1'..s used in this Notice, and in the contract resulting from this solici ta tion,.
the "covered area" is Pinellas County, =lorida.
60-4.3 (a)
EQUAL OPPORTill~ITYCLAUSE
During the performance of this contract, the contractor agrees as follo....s:
1. ~ne contractor will not discriminate against any employee or applicant
for employment because of race, color, religion, sex, or national origin.
~ne contractor will ~~e affirmative a~tion to e~sure that applicants are
employed, and that employees are treated during emplo;~ent ....it.'1out regard
to their race, color, religion, sex, or national origin. Such action shall
include, ~ut not be limited to the follo....ing: Employment, upgrading,
demotion, or transfer; recrui nnent or recruitment advertising; layoff or
terminatipn, rates of payor other fo~s of compensation; and selection
for training, including apprenticeship. Tne contractor agrees to post
in conspicuous places, available to employees anc. applicantS for employ-
ment, notices to be provioed setting forth the provisions of this non-
discrimination clause.
2. The contractor ....ill, in all solicitations or advertiseDents for employees
placed by or on behalf of ~~e contractor, s~te ~~at all oualified
. ..
applicants will receive consideration for e.In?loyment ....i thout regard to .
race, color, religion, sex, or national origin.
3. Tne contractor ~ill send to each labor union or representative of workers
with ....hich he has a collectiye bargaining agreement or other contract or
~derstanding, a notice to be provided advising the said labor union or
....orkers' representatives of the.contractor's co~tments under this
section, and shall post copies of L~e notice in conspicuous places avail-
able to employees and applicants for emplo~ent.
F-2
"
.'
, !
The cont..:"actor I..illl....~^.?ly I.'it-.n all provisions of Exel _'ive Order 11246
of September 24, 196~, a.nd of the rules, regulations; and relevant orders
of the Secretary of Labor.
'40
. ,
S. The contractor will furnish all information and reports re~red by
Executive Order 11246 of September 24, 1965, and by rules, regulations,
and orders of the Secretary of Labor, or pursuant thereto, and will permit
access to his books, records, and accounts by the a~~nistering agency
and t.~e Secre tary of Labor for purposes of inves tiga tion to ascertc.in
compliance with such rules, regulations, and orders.
6. In the event of the contractor's non-compliance with the nondiscrimination
clauses of this contract or with any of the said rules, regulations, or
orders, this contract may be canceled, terminated, or suspended in whole
or in part and the contractor may be declared ineligible for further
Goverr.rocnt contracts or federally assisted constrUction contracts in
accordance with procedures authorized in Executive Order 11246 of
September 24, 1965, or by rule, regulation, or order of the Secretary
of Labor, or as otherwise provided by law.
7. l~e contractor will include t.~e portion of the sentence ~ediately
preceding paragraph (1) and the provisions of paragrapr~ (1) t.~ough (7)
in every subcontract or purchase oreer unless eXeID?ted by rules, regula-
tions, or orders of the Secretary of Labor issued pursu~~t to section
204 of ~xecutive Order l1246 of September 24, 1965, so that such provisions
will be binding upon each subcontractor or vendor. The contractor will
take such action with respect to any subcontract Dr purchase order as
t.~e administering agency may direct as a means of enforcing such provisions,
including sanctions for non-compliance: Provided, however, That in t'le
event a contractor ~ecomes involved in, or is threatened with, litigation
with a ~ubcDntractor or veneor as a result of such direction by the
administering agency, the contractor may request the United Sta~es to enter
into such litigation to protect the interests of the United States.
ST.l\NDl-_lID FEDERAL EQUAL EHPLOYM.......l'"NT OPPORTUNITY CONSTRUCTION CONTRACT
SPECITICATIONS (EXECUTIVE ORDER 11246)
1. As used in these specifications:
a. "Covered area" means t.~e geogxa?hical area described in the solicita-
tion fro~ which ~~is contract resulted.
b. "Directo::" means Director, Office. of Federal Contract Com?liatlce
Progr~~, Onited States Department of Laber, or any person to whom
the Director delegates aUL~ority.
c. "E!r.ployer identification nt:Inber" mea.J'~ the Federal Social Security
nurrber used on ~~e Employer's Qua::terly Federal Tax Return, O. S.
Tre2.stL.l' Depar::ment Fo:rm 941..
d. "l.u.nori ty" includes:
F-3
(1)
Black (all pJrs~ns having origins 1n any of ~L
Af:.-ican racial groups not of Hispanic origin)";
Black
".
"
(2) Hispanic (all persons of Mexic~, Puerto Rican, Cuban,
Central or South American or other Spanish Culture or
origin, regarcless of :.-ace) I
(3) Asian and Pacific Islander (~ll persons having origins
in any of the original peoples of the Far East, Southeast
Asia, the Indian Subcontinent, or the Pacific Islands); and
(4) American Indian or Alaskan Native (all persons having
origins in any of the original peoples of Nor~ America and
maintaining identifiable tribal affiliations ~~rough member-
ship and participation or community identification).
2. Whenever the Contractor, or any Subcontractor at any tier, subcontracts
a portion of the work involving any constrUction trade, it shall
physically include in each subcontract in excess of $lO ,000 the provi-
.5tons of these specifications and the Notice ....hich contains the ?-p-
pllcable goals for minority and female participation and ....hich is set
forth in the solicitations from ....hich this cont=act resulted.
3. If the Contractor is participating (pursuant to 41 CFR 60-4.5) in a
Hometown.Plan approved by L~e o. S. Department of Labor in the covered
area either individually or through an association, its affirmative action
obligations on all ....ork in the Plan area (including goals ~nd timetables)
shall be in accordance ....ith that Plan for those trades ~hich have unions
Farticipating in the Plan. Contractors must be able to demonstrate their
participation in and ccmpliance ....i~~ the provisions of any such Hometo~~
Plan. Each Contractor or Subcontractor participating in an approved plan
is individually required to comply ....i th its obligations under .the EEO
clause, and to make a good faitJ1 e'ffort to achieve each 90al under the
Plan in each trade in ....hich it has employees. Tne overall good faith
performance by o~~er Contractors or Subcontractors toward a goal in an
approved Plan does not excuse any covered Contractor's or Subcontractor's
failu=e to take good faith efforts to achieve the Plan goals and time-
table.
4. The Contractor shall implement the specific affirmative action standarcs
provided in paragraphs ?a through p of these specifications. The goals
set forth in the solicitation from which this cont=act resulted are
expressed as perc~tages of the total hou=s of employment and training
of minority and female utilization the Contractor should reasonabiy be
able to achieve in each const-~ction trade in-~ich 'it has employees in
the covered area. The Contracto~ is e>~ected to make substantially
uniform progress to~ard its goals in each craft during the period
specified.
5. Neither the provisions of any collective bargaining agreement, nor the
failu=e by a Q~ion ~ith ....hom the Cont=actor has a collective bargaining
agreement, to ~efer either minorities or ....om~ shall e>:cuse the Contrac-
tor's obligatioP$ under these specifications, Executive Order 11246, or
the regulations promulgated pursuant thereto.
F-4
.6.
lr. orde:- fo:: ~-je ;)O~......,c:::,:",:,:-:~ ':..:a":";~:"'IJg :lO~S c:. Grr':"~;"-"'-'-~ c:..;.'.... _.:..'"-~_.,'..:t.;J
to be cou:"ltec in meeti-.t..'1e goals, such apprentices i'!nc ~ainees must.
be employed by the c::11. ..'ctoI' during the training pe~-i'land the
! Contract.or mus t have made a comrni t.'nent to employ the a.Il?rentices and
trainees at the completion of their training, subject to the availabil-
ity of employment opportunities. - Trainees ~ust be trained pursuant to
training programs ~ppI'oved by the U. S. Department of Labor.
. ,
7.
The Contractor shall take specific affirmative actions to ensure equal
employment opportunity. ~e evaluation of the Contractor's compliance
....ith these si_.ecifications. shall be based upon its effort to achieve
maximum results from its actions. The Contractor shall document these
efforts fully, and shall implement affirmative action steps at least as
extensive as the follo....ing:
a. Ensure and maintain a ....orking environment free of harrassment,
intimidation, and coercion at all sites, and in all facilities at
....hich the Contractor's employees are assigned to ....ork. The
Con tractor, ....here possible, ....ill assign two or more.....omen to each
cons~ruction project. The Contractor shall specifically ensure that
all foremen, superintendents, and other on-site supervisory personnel
are awa.=e of and carry out the Contractor's obligation to maintain
such a working environment, ....ith specific attention to ~~nority or
female individuals ....orking at such sites or in such facilities.
b. Establish and maintain a current list of minority and female
recruitment sources, provide ....ritten notification to minority and
female recruitment sources and to community organizations ....hen the
Contractor or its unions have employ~ent opportunities available,
and maintain a record of the organizations' response~.
c. Maintain a current file of the names, addresses and telephone
numbers of each minority and female off-the-street applicant and
minority or female referral from a union, a rec~i~ent source or
community organization and of ....hat "action was taken ....ith respect
to each such inci vidual. If such individual was sent to t..1je union
hiring hall for referral and was not referred back to t..~e Contractor
by t..~e union or, if referred, not employed by the Contractor, this
shall be documented in the file with the reason therefor, along ....ith
....hatever additional actions the Contractor may have taken.
..
d. Provide immediate ....ritten notification to the Director when the
union or unions with ....hich the Contractor has a collective
bargaining ag=eement has not referred to the Contractor a ~~nority
person or woman sent by the Contractor, or when the Con~actor has
ot.'"lcr information that the union referral process has impeded .the
Con~actor's e!forts to meet its obligations.
e. Develop on-the-job training opportunities and/or participate in
training programs for the area ~hich expressly include minorities
and women, including upgrading programs and apprenticeship and
trainee programs relevant to the Con tractor's err.?loYlDent needs,
especially those progxams funded or approved by the Depa.=-tment of
Labor. The Contractor shall provide notice of these programs to
the sources compiled under 7b above.
f. Disseminate the Contractor's EEO policy by providing notice of the
policy to unions and training programs and requesting ~~ei= coopera-
tion in assisting the Contractor in ~eeting its EEO obligations; by
including it in any policy ~~nual and collective bargaining agreement; by
F-5
I
'"
.'
-'
publicizing it in the company newspaper, ~nnu~l report, etc.; by
specific review of the policy with ~ll management personnel and
vith all minority and female employees ~t least once a year; and
by posting the company EEO policy on bulletin boards accessible
to all employees at each location where construction work is
performed.
g. Review, at least annually, the company's EEO policy and affirmative
action obligations under these specifications with all employees
having any responsibility for hiring, assignment, layoff, termina-
tion or o~~er employment decisions including specific review of
these items wi tl. onsi te supervisory personnel such as Superintendents,
General Foremen, etc., prior 'to ~~e initiation of construction work
at any job site. A written record shall be made and maintained
identifying the time and place of these meetings, persons at~ending,
subject n~tter discussed, and disposition of the subject matter.
h. Disseminate the contractor's EEO po li C)r externally by including
it in any -dvertising in the newS media, specifically including
minority and female newS media, and providing written notification
to and discussing the Contractor I s EEO policy ....i th other Contrac-
tqrs and Subcontractors with ....hom .the Contractor does or antici-
pates doing business.
L Direct its recrui t:IDent efforts, both oral and ...lri tten, to minority,
ferr4le and community organizations, to schools with minority and
female students and to minority and fema le recrui ment and training
organizations serving the Cont=actor's recruitment area and employ-
ment needs~ Not later than one month prior to the date for the
ac~eptance of applications for apprenticeship or other training
by any recruitment source, the Cont=actor shall send written
notification to organizations such as the above describing G,e
openings, screening procedures, and tests to be used in the selection
process.
j. Encourage present minority and female employees to recruit other
minority persons and women and, where reasonable, provide arter
school, summer and vacation employment to minority and female youth
both on the site' and in other areas of a Contractor I s workforce.
,i'"'
k. validate all tests and other selection requirements where L~e=e
is an obligation to do so ~~der.4l CFR Part 60-3.
1. Conduct, at least annually, an inventory and evaluation at least of
of all minority and female persor~el for promotional opportunities
and encourage these employees to seek or to prepare for, L~ough
appropriate training, etc., such oppor~~ities
ID. ~r$U=e that seniority practices, job classifications, ~ork assign-
.ments and o~~er personnel practices, do not have a discrirei~ato~
effect by continually monitoring all personnel and employment
related activities to ensure that the EZO policy and the Contractor's
F-6
obligations undel these specificacions are being _I~.;ied out.
n. Ensure that all facilities and company activities are non-
segrated except that separate or single-user toilet and
necessary changing facilities shall be provided to assure
privacy between the sexes.
o. Document and maintain a record of all solicitations of offers
for subcontracts from rr~nority and female cons~-uction
contractors and suppliers, including circulation of solicitations
to minority and female contractor associations ~d other business
associa tions .
p. Conduct a review, at least annually, of all supervisors' adherence
to and performance under the Contractor's EEO policies and
affirmative action obligations.
8. Contractors are encouraged to participate in voluntary associations
~hich assist in fulfilling one or more of their affirmative action
obligations (7a through p). The efforts of a contractor association,
'joint contractor-union, contractor-community, or other similar group
of ~hich the contractor is a member and participant, pay be asserted
as fulfilling anyone or more of its obligations under 7a through P
of these Specifications provided that the contractor actively partic-
ipates jn the group, makes every effort to assure that the group has
a positive impact on the employment of minorities and ~o~en in the
indust-;', ensures that the concrete benefi ts of the program are
reflected in the Contractor's minority and female workforce partic-
ipation, makes a good faith effort to meet its individual goals and
timetables, and can provide accesS to documentation ~hich demonstrates
the effectiveness of actions taken on behalf of the Contractor. ?ne
obligation to comply, however, i~ the contractor's and failure of such
a group to fulfill an obligation shall not be a defense for the
Contractor's noncompliance.
9. .A single goal for rrinorities and a separate single goal for ~OIDen have
been established. The Contractor, however, is required to provide
equal emp~oyment opportunity and to take affirmative action for all
minority groups, both male and fer.~le, and all women. both minori~
and non-minority. Consequently, ~~e Contractor may be in violation
of the EY.ecutive Order if a particular group is employed in a substan-
tially disparate manner (for example, even L~ough the Contractor has
achieved its goals for ~omen generally, the Contracto= may be in
violation of the Executive Order if a specific minority group 0; women
is unoerutilized).
10_ ?ne Contractor shall not use the goals and timetables or affirmative
action standards to discriminate against any person because of race,
color, religion, sex, or national origin.
11. The Cont=acto= shall not ente= into any Subcontract wiD~ any person
or fi~ deba==ed from Government contracts pursuant to Executive
Oro~r 11246.
F-7
,12. The Contractor shl14 carry out such sanctions and I .lties for
violation of these specifications and of the Equal Opportunity Clause,
'including suspension, termination and qancellation of existing sub-
contracts as may be imposed or ordered pursuant to Executive Order
11246, a6 amended, and its i~plementing 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 Contrac~or, in fulfilling its obligations under L~ege specifications,
shall implement specific affirmative action steps, at least as exten-
sive as those standards prescribed in paragraph 7 of L~ese specifica-
tions, so as to achieve maximum results from i.ts efforts to ensure
equal emplo)~ent opportunity. If the Contractor fails to comply ~ith
the requirements of the Executive Order, the implementing regulations,
or these specifications, the Director shall proceed in accordance ~ith
4l CFR 60-4.8.
14. The Contractor shall designate a responsible official to ~nitor all
employment related activity to ensure that the company EEO policy is
being carried out, to submit reports relating to the provisions hereof
as may be required by the Gove~ent and to keep records. Records
sha1lat least include for each employee the name, address, telephone
numbers, constrUction trade, union affiliation if any, employee
identification number ~hen assigned, social security number, race,
sex, status (e.g., mechanic, apprentice, trainee, helper, or laborer),
dates of changes in status, hours worked per week in the indicated
trade, rate of pay, and locations at which the work was performed.
Records shall be maintained in an easily understandable and retrievable
form; ho~ever, to the degree that existing records satisfy this
requirement, contractors shall not be required to ~aintain separate
records.
l5~ Nothing herein provided shall be const~ed as a lirni~tion upon the
application of other laws which establish di=ferent standards of
compliance or upon the application of requirements for ~~e hiring of
local or other area residents (e.g., those under ~~e Public Works
Employment Act of 1977 and'theComrn~~ity Development 310ck Grant
Program) .
.
F-8
I
..',I
APPENDIX G
OMB
Circular A-110
.1
.
I
.f
Office of Management and Budget Circular A-110 (7/30/76)
A-110:1
OFFICE OF MANAGEMENT AND
B U DG ET
[CIrcular No. A-IIO}
GRANTS AND AGREEMENTS WITH INSTI-
TUTIONS OF HIGHER EDUCATION,
HOSPITALS, AND OTHER NONPROFIT
ORGANIZATIONS
Uniform Administrative Requirements
JULY 1, 1976.
To the heads of executive departments
and estnblishments.
Subject: Uniform administrative re-
QUirements for giants and other agree-
ments with Institutions of hizhcr edu-
cation, hospitals, and other nonprofit
organizations
1. Purposc.-This Circular' promul-
gates standards for obtaining consisten-
cy and unHormity among Federal agen-
cies In the administration of grants to,
and other agreements with, public a.nd
private Institutions of higher education,
public and private hospitals. and other
Quasi-public and private nonprofit or-
ganizations. This Circular docs not apply
to grants. contracts, or other agreements
. between the Federal Government and
units of State or local governments
covered by Federal Management Cir-
cular 74-7.
2. EtJective date.-The standards in
the attachments to this Circular Vo'i1I be
a.pplled as soon as practicable but not
la.ter than January 1,1977.
3. Supersession.-This Circular res-
cinds and replaces parts III and IV of
the Appendix to Federal Management
Circular 73-7, Administration of college
and university research grants.
4. Policy intent.-The uniform stand.
ards and reqUirements included in' the
attachments to this Circular replace the
varying and often confiicting require-
ments th.a.t have been imposed by Fed-
eral agencies as conditions of grants and
other agreements with recipients.
5. Applicability and. scopc.-Except as
provided belov.'. the stands.rds promul-
gated by this Circular are applicable to
all Federa.l agencies. If any statue ex-
pressly prescribes policies br specific re-
Quirements tha.t difTer from the stand-
ards provided herein. the provisions of
the statute shall govern.
The provisions of the attachments of
this Circuiar shall be applied to subre-
cipients performing substantive work
under grants that are passed through or
awarded by the primary recipient if such
subreciplents are organizations de-
scribed In paragraph 1.
6. Definitions.
1>. The term "grant" means monev or
property prOVided in lieu of money paid
or furnished by the Federal Government
to recipients under programs that pro-
vide financial assistance or that pro\'ide
support or stimulation to' accomplish a
pUblic purpose. The term "other agree-
ments" does not Include contracts which
are required to be entered into and ad-
ministered under procurement laws and
regulations. Grants and other agree-
ments exclude (a) technical assistance
programs. which provide services instead
~, .- ~- -..
general revenue sharing, loans, 10:l.n
guarant.ees. or insurance" and (c) direct
payments of any kind to individuals.
b. The term "recipient" includes the
following types of nonprofit organiza-
tions that are receiving Federal funds
from a Federal agency or through a
Slate or local government:
Public and private Institutions of high-
er education: pUblic and prh'ate hos-
pitals; and other Quasi-public and pri-
vate nonprofit organizations such as (but
not limited tol communit.y a.clion agen-
cies. research Institutes, educational as-
sociations, and health centers.
The term does not include foreign or
international organizations (such as
agencies of the United Nations) and
Government-owned contractor operated
facilities or research centers providing
continued support for mission-oriented,
large scale programs that are Govern-
ment.-owned or controlled, or are de-,
signed as federally-funded research and
development centers.
7. ReqILCsts lor exceptions,-The Offiee
of Management and Budget may grant.
exceptions from the requirements of this
Circular when exceptions are not pro-
hibited under existing laws.
However, In the Interest of maximwn
uniformity, exceptions from the re-
Quirements of the Circular '1'7111 be per-
mitted only in unusual eRSCS. Agencies
may apply more restrictive requirements
to a class of recipients when approved by
the Office of Management and Budget.
8. Att<u:hments.-The standards pro-
mulgated by this Circular are set forth
in the Attachments. which are:
Attachment A Cash ''''deposItories.
Attachment B BondIng and Insurance.
Attachment C RetentIon and custodial re-
quIrements lor records.
Attachmen.l. D PTO{:r..m Income.
Attachment E Con shlU'lng ..nd matchIng.
Atte..chment F Standards lor Dnanclal man-
agemen t systems.
Attachment G FInancIal reporting requIre-
ments,
Attachment H MonitorIng and reportlng
program perlOrm8.Jlce.
Atu-chment I Payment requlremr.nts.
Attachment J RevisIon 01 flnnnclal plans.
Atta.chmen,t K Closeout procedures.
Attachment L S.uspenslon and termination
procedures.
Attachment M Stnrldard lorm lor applying
lor lederal &$slstance.
Attl\chment N Property management st..nd-
ards.
Attachment 0 PTocurement standards.
9. Exceptions lor certain recipienis.-
Notwithstanding the provisions of para-
graph 7 if an applicant/recipient has a
history of poor performance. is not fi-
nancially stable. or Its management sys-
tem does not meet the standards pre-
scribed in the Circular. Federal agencies
may impose additional reqUirements as
needed prOVided that such applicant/
recipient is notified in writing as to:
a. Why the additional standards are
being imposed:
b. what corrective action is needed.
Copies of such notifications shall be
sent to the Office of Management and
Budget and other agencies funding that
recipient at the same time the recipient
: _ ._ _ l : r: ~ .:
10. Rcsponsibilities.-Agencies respon-
sible for administering programs U1at in-
voh'e grants and other agreements with
reciplen l..s shall issue the appropria te
regula tions necessary to implemen t the
provisions of this Circular. All portions
of such regulations that involve record-
keeping and/or reporting requirements
subject to the proviSions of the Federa.l
Reports Act and OMB Circular A-40
must be submitted to OMD for clearance
before being introduced into use. Upon
request all regulations and instructiom
implementing this Circular shl\ll be
fl1rni1'hed to tile Office of Management
and Budget. Agencies shall also de1'ig-
nate an official to serve as the agency
representative on matters relating to the
!mplementation of this Circular. The
name and title of such representative
shall be fumL~hed to the Office of Man-
agement and Budget not later than Au-
gust 3D, 1976,
11. Inquirics.~Furtl1er information
concerning this Circular may be obtained
by contracting the Financial Manage-
ment Branch, Budget Review Division.
O!f1ce of Management and Budget,
Washington, D.C. 20503. telephone 395-
3993.
JAMES T. LYNN.
Director.
ATTACHMF.NT A.--CIRCULAn No. A-IIO
CASH DE:rOSITORI'C6
I. This attachment sets 10l'th stRndards
governIng the use 01 banks and other In-
stitutions as depositories 01 lunds Rd"anced
under grants and other agreements.
2. Except lor sltul\tlons described In parl\-
graphs 3. 4, and 5, no Federal sponsorIng
agency shall:
a. Require physIcal segregl\tlon of cnsh de-
positories lor funds which are prOVided to a
reCipient.
b. Establish any eligIbility requIrements
lor casb deposltorle.s lor lunds ,,'hlch are pro-
vided to a recipient. '.
3.}., separat.e bank a"collnt shl\1l be require
,,'hen applicable letter-ol-credl t agreements
provIde that drawdo,,'ns will be mr.de when
the re<:lplent's checks are presented to the
bank lor payment.
4. Any moneys advnnced to n recipient
,,'hlch are subJect to th~ contrN... or regula-
tIon 01 the UnIted States or any 01 Its olflcers.
q;ents or employecs' (public money'; is de-
fined In Trea.sury Circular No. 1:76. n.s
amended) must be deposited In a ban'\: with
Federal Deposit Insurance corporation
(FDIC) Insurance coverage and the hl\lance
exceedIng the FDIC coverage must be col-
laterally secured.
5. ConsIstent ,,'lth the national goal 01
expandIng the opportunities lor minorIty
busIness enterprises, recipients and ",ub.
recIpients shall be encouraged 'to use ml nor-
t t\' banks (a hank ,,'hlch Is o"'ned at lea.st 50
p~rcent by minority group members).
ATTACHME:NT B.-CIRCOLAR No. A-II 0
IJONDING AND INSURANCE:
:. ThIs attachment sets lorth bondIng nnd
Insurance requirements for grants and other
ng-rccments ,,1th recIpIents. No other bond-
Ing and Insurance requlremen,ts shall be Im-
posed other than those normany required by
the recIpient.
2. Except as otherwise required by la,,'. "
grant or other agreement that requires the
contracting (or subcontracting) lor con-
struC'tlon or lnclllty Improvements shnll pro-
_~ _'_' ,"'" . ,_ (,-.11,...~' '. ,. ,'"" t', ,."
I
Office of Management and Budget Circular A-110 (7/30/76)
qulremenl.6 relAtlng to bid guo.rantees, per-
10rm&DCe bondB, and payment bonw unlees
tbe construcllon contre.ct or subcont.ract ex-
ceedB UOO,OOO. Yor those collltrl\ct.s or aub-
contr-acts exceeding UOO,OOO, the Yederal
agency may accept the bonding policy and
requlrementll 01 the grantee pro~lded the
Federal agency h&.8 made' a determination
tbat the Government's Interest t.s adequately
protected. II such a determination bas not
been m&de, tbe minimum requlremen\.8 shall
be a.5 lollows:
a. A bi4 vuarantee Irom e<u:h bt.dMr equIv-
alent to flve pC"Tccnt of th.e bIG price.-
The "bid guara~tee" shall consist 01 a firm
commitment such as a bid bond, certllled
cbeck, or other negotiable Instrument aC-
companying a bid.... l\BSurance that the bid-
der will. upon acceptance 01 ht.s bid, execute
such contractual documen\.8 l\ll may be re-
quired within the time specllled.
b. Jl perlarmaru::e bond on the part of the
eonlr<u:tar lar ~OO peTcent of the conlr<u:t
prlee.-A "per/onnAnce bond" Is one executed
In connectlon with a contract to secure lul-
fillment oC all the contractor's obligations
under sucb contra.ct.
c. A pallment bond on the part of the con-
tr<u:tar for 100 percent of the contr<u:t
priee.-A "payment bond" I. one executed In
connection wltb a contract to Msure pay-
ment M required by law 01 all pel"llOns sup-
plying labor and material In the execution oC
tbe work provided lor In tbe con tract.
3. Where the Federal Government guaran-
tees or Insuru th... repayment oC money
borrowed by the recipient. the Federnl
agency, at Its dlscretlon, may require a.de-
quate bonding and 1nsurAnce II tbe boncUng
and Insurance requirementll 01 the recipient
Are not deemed a.deqUAte to protect the in-
terest or the !"ederAI Government.
4. The Fecl.eral spoIlBOrlng agency may re-
quire a.dequate fidelity bond coverage ",'here
tbe reclplent hll.!l no coverage And tbe bond t.s
needed lto protect tbe Government's Interest.
li. Where bonds Are required In tbe altua-
tlOM described Above. tbe bonds ahall be ob-
tained lrom companies boldlng certificate<! or
authority .... ACCeptable lIurdles (31 CF'R
22"3).
ATTACRHXl>,. C.--CncuL.\Jl No. A-liD
a.rn:Nn"ON AN"D CUSTODIAL ItLQUlllXUXNT8 roa
a~olUla
1. Thl.s Attacbment lIel.s lortb record reten-
tion requlrements lor gTants and oUler "P'e<!-
ment.s with reclplen\.8. Fede".1 sponsoring
AlI"n.cles Bball not Impose any record reten-
tJon requirements upon rec1plent.s other tha.n
tbose described below.
2. Excep! lor pArat;r&pb I, thlll att.achment
a150 e.pplles to subreclplent.s .... relerred to
In paragTs.ph li 01 the bll.!llc clrcula.r
3. P1nAnclal records, 8upportlng d~Umen\.8
statilltlcal records, and all otber records pertl:
nent to an at;"!"eement &hall be retained lor a
periOd or thr~ yeAZll, with the follo""1D€
qUa.lI!lCAtloD8 :
L. II any Iltlgatlon, claim or audit 18 atArted
before the expiration or the 3-year periOd the
Te>OOrw shall be retained until all Iltl!:..tions
cl..lmJ;, or Audit IlncUngslnvol~lng tbe recor~
baa been resolved.
b. Rec<>rds ror nonexpendable property B.<:-
qulred with J"edernJ func16 &.hall be retained
lor 3 yea.rtl a./ter 1\.1; fina.l dlBpoIIltlon
e. ~en r<'<'./Jrd. llTe tranBferred U, or maln-
t..lned by tbe Federal I<ponsonng agency the
3b-IYea.r retention requlremtnt lB not appilca-
e to tbe r=lplent.
{. The retention periOd S!.ll.--t.5 from the
dAte or tbe submla8lon ot tbe tlnAl '~ncU-
ture report 0- , -,,-
men " ,or grants and other &gT~-
d 18 tb..t llTe renewed An,nually. trom tha
~~ of the IIubmls8lon of the a..nnuAl
Clclal .tat"" r"POrt.
li. Recipient org..nl......tlons should be au-
thorized by the rederal sponsoring ,,€ency,
Ir they 60 desire. to substitute microfilm
copies In \leu oC onrln.81 recorw.
6. The P'ederAl sponsoring '4!ency shall re-
quest trAnsrer 01 certain records to 1\.1; cw-
tady lrom recipient organlr.Atlons ,,'hen It
determines thAt the recorc16 possess long-
term retention v..lue. However, In order to
avoid dupllc..te record-keeping. a Fede".1
sponsoring agency mAY malte arrAngement.s
With recelplent org..nlzatlons to retAln any
records th..t are continuously needed lor
Joint use.
7. The head or the Feder..l aponsorlng !\gen-
cy and the Comptroller Oeneral or the United
States, or any or their duly authorized repre-
.entatlvC8, ahall have access to an)' pertinent
boob, documen\.5. paper.. IUld records or the
recipient org..nlzatlon and their subre-
clplen\.1l to make audits, examJnatloru;, ex-
cerpts and trlUlacrlp\.8.
8. Unle&S otherwt.se required by la"', no
Pederal aponsorlng ..gency ",'tall place n-
strlctlons on recipient orga.n.lzatloD8 thAt will
limit public access to the recorda of recipient
organlzatlons th..t are pertinent to a gTlUlt
or agreement excep't wben tbe agency can
demon.strate thAt auch record!; must be kept
confidential and would h.ve been excepted
rrom dt.sclOllure pUT8uant to the Yreedom 01
Inrormatlon Act (6 U.S.C. 652) U the recorda
had belonged to tbe Feder..l sponsortng
agency.
ATTACHWJ:NT D.--CmctlL.\Jl No. A-liD
PIlOCRAW INCO).U
1. Pe<1era.1 sponsoring ~ncl.a &hall e.pply
the lltand..rda set forth In this Att&chment In
requiring recipient organizatiOns to &CCount
lor progT&m Inoome rel..ted to proJec\.8
fin.a.nced In ,,'hole Or In part with Federal
runc16. Progn.m Income repreeent.s gT'088 In-
come earned by tbe recipient lrom tbe led-
erally 8upported e.ctlvltles. Such earnings ex-
clude Interest earned on &dvAnces and may
Include, but wUl net be Il.mJted to, Income
Irom aervlce tees, .ale or oommo<1Jtlee. uu.ge
or rental lees, and royalties on p..tenta and
coprlgbta.
2. In tereet earned on ad vance:s or FederAl
lunds 4h..U be remitted to the Fedual agency
elC'Cept lor Interest earned en adn.nces t()
State.. or InstrumentaJltlee or eo Sl.ate &.ll pro-
"Ided br the Intergovernmentnl Coopera.tlon
ut or 1968 (Public L&w ~77).
3. Proceeda Irom the e.Ale of ree.J and per-
sonal property eltber pro"lded by the Fed-
eral Government or purcha.sed In wbole or In
pArt wltl:. Feder..l lunds, sball be ba.ndled In
Il.CCOrOance with Attachment ~ to tbt.s cir-
cular pertaJnlng to property IIUl.!l&gement.
{. Unlesa tbe agreement provides other-
....lBe. reclplenl.a llball b..ve no obligation to
the J"ederAl Government. Wltb respect to
royalties received a.s a result or copyrlghl.a or
patents produced under the gTlUlt or other
agreement (see p~ph 8, Atta.cbment N).
li, All other program Inoome earned durlD€
the project period &hall be retAlned by the
recipient ..nd, In accord.......ce ",'ltb tbe gra.nt
or other "P'eement. IIhall be:
.... Added to lunw cOm.mJtted to the proJ-
ect by tbe J"edera.1 sponsoring '4!enc~ lUld
reoclplent orgAnlz&tlon and be used t.o t~rtber
eligible PTO&TILm obJectives:
b. Used to finance tbe nOD-Federal &hllTe
or the project when approved by the Pedera.1
IIpODIIOrlD€ agency: or
c. D<<juct.e<l Irom the total project coets
In determining the net 00IIl!< on which the
l'-ede,...1 &bue of C./JlIt.s wUI be ba.sec:l.
ATrACBJoo<r}<T I:.--Cmct1l..U ~o. A-liD
COB"%' BH..A.&..Il'fC A:lfD ).[A..T'CHI.l'oIO
1. Thill ..tt&.cbment ""to forth criteria ..nd
PTOCe<luree for the allowabUltT or ('N.h n"d
.1
A-110:2
In-kind contrlbutlonB ma.de by reclplent.s or
_ubreclplent.s (as referred to In pa.rAgTaph 5
oC the ba.slc circulAr), .or tblrd pa.rtles In 8at-
I.&lylng coat IIharlng a.nd matching reqUlre-
ment.s of Federal spon&Orlng a!:encles. Thl.
attacbment ..Iso establl&hes criteriA lor the
evaluation or In-kind oontrlbutlons ma.de by
third partles. and aupplementll tbe gUidAnce
_et forth In Federal MAnagement Clrcul..r
73-3 wlt1h respect to cost _ha.rlng on leder-
ally-sponsored rC8eArch.
2. The lollowlng definltlona Apply for the
purpose 01 thl.& attacbment:
a. Project co.t..-Project coats are all AI-
10Wllble C0618 (as set lerth In the ..ppllcable
Federal C06t principles) Incurred b)' a recipi-
ent and tbe v..lue 01 the In-kind contribu-
tions nu;de by the reclplen t or third parties
In accomplishing the objectives of the grRnt
or other a[:Teement during tbe project or pro-
gram period.
b. Co.l .h.arlnu and matchlnll.-In gener..!.
cost abarlng and matching represent that
portion 01 project or prog".m coats not borne
by the Fede,...l Government.
c. Ca.sh contrlbutlon.!.--Ca.sh contributions
repreaent the recipient's cll.!lh outlay, includ-
Ing the OUtlAY or money contributed to the
recipient by non-Pederal third po.rtles.
d. In-kind contrlbutlo1>..-ln-klnd contrl-
butlOnB represent tbe value or nonCASh oon-
trlbutlons provided by tbe recipient and
non-Fede".1 thl.rd parties. Only when au-
t1horlzed by Fede,...1 legislAtion, may property
purchll.!led wltb Federal lund.a be consld.ered
Il.8 tbe recipient's In-ldnd contrlbutlenB. In-
kind contributions m..y be in the form or
ch..rgeo lor real property and non"e.xpand-
able personal property, and the "alue or
goods and ...,..,.Icea dlrectly benefiting ..nd
apeclllc..lly IdentUl...ble to the project or
progrAm.
3. Gene".1 guidelines lor oomputlng cost
sbarlng or m.a tcblng llTe .... 10lloW!!:
a. Cost &baring or m..tchlng may consl8t
or:
(I) Charges Incurred by the recipient M
project costa. (Not ...11 cba.rgea req ulre cash
outla)"ll by the recipient dur1Dg 1'be project
period: eXAmples a.re depreclAUon and UIIe
charges for bullc11n.gB a.nd e.qulpment.)
( 2) Pro J ect C06I.a fiDADcod 'Wi th cash co n -
trlbuted .or don..ted to the recipient by other
non-Federal public AlI"ncLee and 1nstltutlons,
..nd private orga.nlzatlens and Indlvlduo.l8,
And
(3) Project coel.a represented by "",..,.lceo
Rnd real ILnd peT8./JnAI property, or use there-
or, donated by other non-Pe<1eral public
agenclea and Institutions. ~d pr\Jo'ate oTg1l-
n!zILtlons and IncUl1duo.l8. ~
b. All cont.r1butlons, both CASh and 1n-
kln~, s.l:1..11 be accepted 1LII part of tbe recipi-
ent'. C06t sha.rtng ..nd matcblng when sucb
contrlbutloDII meet ...11 01 tb'e rol1oW1ng
crlter\.8 :
(1) Are verUlable lrom tbe ",clplent.s
record..s;
(2) A", not Included IlJl contributions lor
Any otber Cedera.11Y-Ilo.MIsted progro.m;
(3) Are neceB8Ary ..nd re&80nable lor prop-
er ..nd emclent lLCCOmplJAhment or project
ob Jectlve.s;
(4) Are types or charges tbat would be ..1-
lo",.,.ble under tbe e.ppllca.ble ooet prlnclpleo;
(li) Are not paid by the P'oderal Go",,'"1)-
ment under another IUllIlrto.neo> o..gn>ement
(unles. tbe a.greement t.s AutborJ.zed by l"e<l-
erAI law to be used ler c.o<<t sh1rlng .or ma tch-
Ing):
(8) Are pro.-Ided rOT In the ..pproved budg-
et wben reqUlred by the J"ede".l ,,€ency: and
(7) ConJorm to other pro"lBlons or tht.s
att..chment.
(. Value5 lor recipient in-kind contribu-
tions wUl be established In o..ccordlLDOt with
the appll~ble caet principles.
6. S~c~c. procedurae for the reclplC'nto In
f";:<;t/l.hlt'\hlnr- thf" 't"rJ\1~ of In-k"1nc1 l"'(';:T.ilhl1-
I
Office of Management and Budget Circular A-110 (7/30/76)
tlons from non-Federal third parties :He set
rorth below:
a. Vall/ation 01 !'oll/ntcer .'erl'ices.-\'olun-
teer services mny be furnIshed by proresslonr<1
and technIcal personnel. consultnnts. nnd
oth,'r skilled nnd unskilled labor. Voluntecr
servIces may be counted as cost shnrlnb or
matchinG I! the service Is nil" Integral and
necessary part of nn approved pror:ram.
(1) Rate.' lor l/oll/nteer urvice.,,-Rates for
v('Junt.ccr!; f-ihou1d be consistent wlth t.hose
paid for slmllnr work In the recipient's
orGnnI7.atlon. In those Instnnces In which the
required skills nre not, lound In the recipient
orgnnI7.ntlon, rntes should be eOllsl,tellt with
those pnld ror slmllnr work In the labor mar-
ket III which the recipient competes ror the
kind of servIces In,'olved.
(2) Voll/ntcers ~ml'loyed by othcr organ i-
zations.-Whc'n nn crnploycr other than the
reclplent furnishes the services or An em-
ployee, these servIces shnll pe valued at the
employec's reGular rnte of pay (exclusl,'e of
frinGe bencfits and overhead costs) provIded
these servlccs nre In the same sklll for which
the employee Is normnlly pnld.
b. Valuation 01 donated, expendable per-
sonal property.-Donated, expendable per-
sonal property Includes such Items as ex-
pendable equipment, olT1ce supplies. laborR-
tory. supplies or workshop and classroom
supplies. Value assessed to expendable per-
sonal property Included In the cost or match-
InG' share should be reasonable and should
not exceed the market value of the property
at the time of the donation.
c. Valuation 01 donated, noncIpend.able
personal property, buildings, and land or
use thereol,
(I) The method used for chargInG cost
sharing or matching for donated nonex-
pend able personal property. buildings and
land rnny dltrer accordinG to the purpose of
the grant or other ngreement as follows:
(a) If the purpose of the grant or other
agreement Is to assist the recipient In the
A.cqulsltlon of equipment, buildings or land.
the totA.1 value of the donated property may
be claimed as cost sharIng or matching.
(b) If the purpose of the aGreement Is to
support acth'l tIcs tho.t requIre the use of
eqUipment. buildings or land. depreclatlon
or use charGes for equipment and buildings
may be made. The full value of equloment or
other capltnl assets "!ld fl\lr rent~l char,ges
for land may be nllowed provided that the
Federal agency has approved the charges.
(2) The val ue of donnted property will be
determIned In accordance with the usual
accountinG policies of the recipient wIth the
followinG quallficatlons:
(a) Land and buildin9s.-The value of
donated land and buildIngs may not,exceed
Its fl\lr m"rket value. at the time of donation
to the recIpient n.s established bJ' nn Inde-
pendent appraiser (e.g.. certified real prop-
erty app",lser or GSA representatives) and
certIfied by A. responsIble omclal of the
recipient.
(b) NoneIpcnd.able pe"sonal pro'pert)J,-
The vl\lue of donnted noncxpendable personal
property shall not exceed the fair market
value or equipment nnd property of the snme
age and condition nt the time of donation.
(e) Usc 01 space.-The value Of donated
space shall not exceed the fair rental ,'all:e
of compn.rnblc space ~s cstnbltshcd b\' nn
Independent apprnlsal of comranble ~pace
and fncllltles In n prl\'nlely-o\\"ned building
In the same locnllt)<'
(d) Loaned eqllipmcnt.-The ,'nlue of
loaned equipment shall not exceed Its faIr
rent.a) \'nl\1c.
6. The following requirements pertalu to
the reclplent's supporting records for In-
kind contributions from non-Federn! third
ra:"t1~.".
n, Volunteer services mils\. he documenl.ed
nnd. 10 the extent fel\.,ilJle. supporled by \.he
sallle methods used by the recipient for Its
employees.
b. The bnsis for determining the valuation
lor pei-sollnl sen'lces. material, equipment.
buildingS and land Illust be documented.
ATTACIIM!:NT F.-CIRCUl.A" No. A-IIO
STANDARDS Fon FINANCIAL MANAGEMENT
SYSTEMS
1.11115 attrlchment prescribes stnndnrds tor
f1nanclnl Innnar,crncnl. systcrns or recipients.
Federal sponsoring ngentles shnll not Impose
additlonal standMds on recipients IInless spe-
cWcally pro,'lded for In the I\ppllcable stn-
tutcs (e.G.. the Joint Fllndln/: Slmpllflcntlon
Act. P.L. 93-510) or other att.nchments La this
clrculRr. Howe\'er. Federal sponsorIng agen-
cies arc encouraged to ml\ke suggestions nnd
nsslst recipients In estballshlng or ImprovInG
finnnclal InanrLg:cmcnt systems when 6uch 0..')-
slstanct' IS needed or requested.
2. Recipients' financial mnnagement sys-
tems shall provide tor:
n. Accurate. current and complete dlstlo-
sure or the financial results of ench federnlly
sponsored project or program In accordnnce
with the reporting requirements set forth In
AU...'\chment G to thIs cIrcular. \Vhen n Fed-
eral sponsoring nGency requires reportInG on
an accrual basis. the recIpIent shl\ll not be
required to establish an accrual accountlnG
system but shall develop such accrual dnta
for Its reports on the bnsls of an analysis of
the documentatIon on hand.
b. Records that Identify adequately the
source and appllCl\tlon of funds for federnlll"
sponsored activIties, These records shnll con-
tain Infonnatlon pertaining La FederA.l
aWA.rds, authorizations. obligations. unobli-
Gated balnnces. nssets. outla}'s. and Income.
c. Effective control over and accountability
for all funds, property and other assets. Re-
cipients shall adequately safeguard all such'
assets and shall assure that the)' are used
solely for authorized purposes.
d. Comparison of actual outlnys with bud-
get amounts for eA.ch (:Tant or other agree-
ment. Whenever appropriate or required by
the Federal sponsoring aGency" financial In-
formation should be related to performance
and unit cost data.
e. Procedures to mlnlml"e the time elapsing
bctv..een the transfer of funds from the U.S.
Treasury IInd the disbursement by the recip-
Ient. whenever funds are advanced b)' the
Federal Government. Mlen advances nre
made by a letter-of-credit method. the recip-
Ient shall make drawdowns as close as pos-
sible to the time ot making disbursements.
1. Procedures for determining the reason-
ableness. allowablllty and allocl\blllty of costs
In accordance with the provisions of the 1'1'-
pllcable Federal cost princIples and the tcrms
of tlle grant or other aGreement.
G. ACcountinG records that are supported
by source documentation,
h. Exnmlnatlons In the form of audits or
Internal audIts. Such audits shall be mnde
b)' quallfied Individuals who nre sumclently
Independent 0: those who a\lth~rizc the ex-
penditure of Federal funds. !.o prod lice un-
biased opinions. conclusions or judgments.
The)' shall meet the Independcnce crlterln
R.long the lines or Chapter 3. Part 3 of the
U.S. General Accounting omce publlcntlon.
St.'\ndardo; for Audit of GovernmenUI Orl;nn-
17.atlons. Pro~rams. Acti"ltles and Functions.
111cse cxanlina.tiot'l.!> nrc intended to a..f.tcer-
tR.in the etrectlveness of the finR.nclnl man~
agement systems and Internal procedures'
that have been establlshed 1.0 meet the I.crms
and conditions or the agreement.'. Jt Is not
Intended that each agreement awarded to the
rcclp\cnt be examined. Gcncrnlly, cxnmlrH\.
t.lon~ should be c:onductcd c.n an orr.nnl7.n-
rlnn-wlrl" ~"H"'~!<:' to tC:.-t 1))(' fl~r.~l 1J~trr';I1.\' or
J
A-110:3
f1nR.nrlnl t.rnnfo;l\ctl()Jl~. R.o; well as compliance
with the terms and conditions or the FederR.1
grp.nLo; R.nd other agreements. Such tests
would include R.n appropriate sampllnl; of
Federal R.l!reements. Exnmlnatlons ",lll be
conducted with reasonable frequency. on I'
continuing hllsls or fit scheduled Inten-als.
usunll)' nnnuR.lly. but not less frequent.ly thnn
evcry two ye~Hs. The frequency of these ex-
nmlnatlons shall depend \lpon the !lature.
S17.c and the complexity of the nctvll\.)'. These
examlnntlons do not relieve F'eOeral agencies
of their nucllt responsibilities. but mny Rtrect
the trequency and scope or such I\udlts.
I. A systematic method to assure timely nnd
approprinte resollltlon of nudlt findings nnd
recommendations.
3. Prlmnry recipients shnll require subre-
clplen!s (IlS defined In pnrngraph 5 of the
\>nsle circular) to ndopt the stnndnrds In
parngraph 2. above except for the require-
ment In subparagraph 2e. regarding the use'
or the letter-of-credit method nnd thnt pnrt
of .subpnraGraph 2n, reGnrdlnG reporting
forms and trequencle" prescribed In Attnch-
ment, G to thls clrculnr.
ATTACHMENT G.-CIRCUl.AR No. A-IIO
TINANCtAL RE:rOn.'ILN'C REQUIREMENTS
I. This attnchment prescribes uniform re-
portinG procedures for recIpients to: sum-
marize expenditures mnde and Federnl funds
uner.pended for each nward. report the st.ntus
of Federal CA.sh A.dvanced. request ad\'1\nces
and reimbursement when the letter-of-credit
method Is not used; and promulgates stand-
arc'. forms Incident thereto.
2. The fo1\o""lng definlUons apply for pur-
poses of thls attachment:
a. Accrued expcnditure..-Accrued ex-
pendl tures A.re the charges Incurred by the
rcclplent during a given period requiring the
provision of funds for: (I) goods and other
I.anglble propert)' received; (2) serviCes per-
formed by employees, contractors, subreclpl-
ents. and other payees. and (3) other
amounts becomIng owed under programs for
which no current services or performance I-'
required.
b. Accrued inco'1'e.-^ccrued Income Is the
sum of (I) earnIngs durInG a gIven period
from (I) serviCes ,.performed by the recipi-
ent; and (II) goods and other tlUlglble
property de\1vered La purcha.sers; and (2)
amounts becoming owed to the recipient for
whl.J;,h no current servIces or performance ls
required by the recipIent.
c. Federal funds authorizcd.-Federal
funds authorized art the tot.nl amount of
Federal funds ob\1gated by uie Federal Gov-
ernment for use by the recipIent. Thl-'
amount may Include any nuthorlzed carry-
over o! unob\1gated funds from prior fiscal
years when permitted by law or A.gency
regulation.
d. in-kind contributio7W.-ln-klnd COD-
trlbutlons are defined In Attachment E to
this circular.
e. Ob/igatio7W.-ObJlgntlons nre the
amounts of orders placed, contracts and
grnnts awarded, services received. and simi-
lar transactions during a r.I"en period thR.t
",'ilI require payment by the recipient durIng
the same or a ruture period.
r. Outlo)Js.-Outlays or expenditures repre-
sent charges made to the project or program.
"Iney mny be reported on a cash or accrunl
bnsls, For reports prepared on a cnsh basis.
outlnys nre the sum of actual cn..sh dlsburse-
ment.s for direct charges for goods Rnd sen--
Ices. the nmount of Indirect expense chl\rged.
the "alue or in-kind contributions applIed.
and the amount of CR.5h '~d\'Rnces f\nd pay-
men!..' mnde to subreclpients. For repor!..' pre-
pared on nn accrual basis. outlays are the
sum of A.Clllf\} ensh dl~bur~cments fOT direct
(;h:\rgc~ for ~()()ds :\nd ~er\'lcc5. the nmount
nf lneJlrrr: ('~:rH'I~~(' tnr\1rrr-d. the vnlu(' of 1n-
I
Office of Management and Budget Circular A-110 (7/30/76)
kind contributions applied. and the net In-
cre...e .lor decre....e) In the amounts owed by
the recipient lor goods and other property
received. lor services perlorme<! by employ-
ees. contractors. subreclplents and other
p.yees and other amounts becoming owed
under programs lor ",'hlch no current serv-
Ices or perlormance are required.
g. Pro"ra m tncome.-PTogram Income Is
dellned In Attachment D 01 this circular. It
m..y be reponed on a cnsh or accrual b....ts.
whichever 13 used lor reporting outla)'s.
h. Unobltgated balanee.-The unobligated
balance Is the portion of the lunds author-
ILed by the Federal sponsortng agency tha t
has not been obllg..ted by the recipient ..nd Is
determined by deducting the cumulative
obllgatlon.s lrom tbe cumul..tlve funclll au-
tboTILed.
l. Unliquidated oblfgatfo"".-For reporu.
prepared on a c..sh' bnsls. unllquldnted obU-
g..tlons represent the'emount 01 obllgatlons
Incurred by the recipient that h..s not been
pAid. For reporu. prepared on ..n ..ccrued ex-
pendIture b....ts. they repre5ent the amount
at obllgstlons Incurred by the recipient lor
which ..n outlay h.... not been recorded.
3. Only the lollowlng lorms will be au-
thorlLed lor obtaining fin..ncl..1 Inlormatlon
lrom reclplenu.
a. FtMncial StatuJ Report (Ezh.tbft 1).
(I) Each J"eder,,1 sponsorIng agency shnll
requtre recipients to u.se the stand..rdlLed
rtn..nclal StatuS Report to report the status
of lunclll lor all noncon.structlon projects or
programs. The Federal sponsorIng agencies
may, liowever. have the option of not re-
quiring the FInancial Status Report when
the Request lor Advance or Reimbursement
(par..graph 4..) or Report of Federal C....h
Transactlons (par..graph 3b) Is determined
to provide ..dequate Inlorm..tlon to meet
their needs. except th..t a fin..l Flnancl..1
Status Report sh..1l be required at the com-
pletion, of the project when the Request lor
Adv..nce or ReImbursement lorm Is used only
lor adv..nces.
(2) The Feder..l sporulorlng agency shall
prescrIbe whether the report sh..n be on ..
c....h or ..ccru..1 basis. It the Feder..l sponsor-
Ing ..gency requires accru..1 Informatlon ..nd
tbe reclplent's accountlng records are not
normally kept on the ..ccrual b....ls. the re-
cIpient shall not be required to convert Its
accountlng system. but shall develop such
..ccru..l Inlorm"tlon through best estImates
based on an analysis 01 the cocumentatlon
on h..n,l.
(3) The Federal sponsoring agency shllll
determine the lrequency, of the FInancial
Status Report lor each project Or program
consldorlng the sIze and complexIty 01 the
particular project or program. However. the
report shall not be required more lrequently
than quarterl)' or less lrequently than aD'-
nually except as provide<! In subpll.Tagrnph
3.. (I) above. A final report shall be required
at the completion of the agreement.
(4) Federal ~ponsorlng agencies sh,,1l re-
quire recipients to submit the FInancial
Statu. Report iorlglnal and no more than
two enples) no I"ter thnn 30 days ..tter the
end ot each speclfled reporting period tor
qUllTterly Ilnd seml-ILnnu,,1 reports. "nd 90
days lor annual and final reports. Extensions
to reportln(; due dates mal' be granted upon
request 01 the recipient,
b. Report of Federal Ca..h TranJaction.
(Ezhibit 2).
(I) \\'hen funds are advnnced to
reclplenu. through letters of credit or wIth
Treasury checks. the Federal sponsoring
agencies shall require each recIpient to sub-
mit " Report 01 Federal Cash Tran~tlo"s.
The Federal spon.sorln(; ngency .hall use tills
report to monitor cash advanced to recipients
and to obtain dlsbursement'lntormatlon lor
e..ch ag-reement lrom the recipients.
(2) Federal sponsoring "cencles mal' re-
quire 10recILsts 01 Feder"l cash requirement.
In the "Remr.rks" sectIon ot the report.
(3) Wh~n practlc..1 and deemed neeessllr)'.
the Federal sponsoring agencle. may require
receipts to report In the "RemILrks" section
the nmount ot cash advancea In excess ot
three days' requirements In thl.' hnnds 01 sub-
recipients and to provide short narrative ex-
pl"na '.Ions 01 actions t"ken by the reclplen ts
to reduce the exceS3 blllllnces,
(4) Recipients shall be required to submit
not more than the orlgln"l and two copies of
the Report 01 Feder&! Cash TranSllctlons IS
working dal's lollowlng the end of e"ch
quarter. The Federal sponsoring agencies
may require a monthly report lrom those
recipients receiVIng "dvances totaling ~I
million or more per year.
(5) Federal sponsoring agencies mal' w"lve
the requirement lor subml~lon ot the Report
of Federal Cash Transactions when monthly
advances 10 not exceed $10.000 per recIpIent.
provided that such advance.; "re monl tored
through other lorms contained In_.thls at-
tJ.chment. or If. In tbe Federal sponsoring
o.genc~"s opinion. the reclplent's accountlng
con trois ..re adequate to minimize excessIve
Federal advances.
4. Except as noud below. only the tollow-
Ing torms wlll be authorized tor the reclpl-
ent3 In requestln(; advances and reimburse-
ments.
a. Request for Advan.ce or Reimbursement
(Exh.iblt 3).
(I) E"cn Federal sponsorlng agency shall
adopt the Request lor Advance Or Relmburse-
m~nt as a standardized lorm tor all noncon-
.tructlon programs when letters-ol-credlt or
predetermIned advance methods are not used.
Federal sponsoring agencies. however. have
th~ option 01 using this lorm tor construc-
tion progTarns In lieu ot the Outlay Report
and Request lor Relmburseme:lt lor Con-
strucllon Programs (subparagr..ph 4b).
(2) ReCIpients shall be "uthorlzed to sub-
mIt requests lor advances and reimburse-
ments at least monthly when letters-ol-
credl t are not used. Federal sponsoring
agencies shall not require the submission ot
more th"n the orll>1n,,1 and t",.o copies ot the
Request lor AdvaTlce or Reimbursement.
J
A.110:4
b. Outlay report and requcst Jor rnm-
bUT.'it'7nr:nt lOT construction pTogrant.o; (EI-
hibit 4).
(I) Ench Federal r.pon..orlnr; "r;ency shall
"dopt the Outlay Report and Requ",;l for He-
Imbursement lor Construction Programs a,
the stJ.ndardlzcd format to be used tor re-
questlng reimbursement for conslructlon
programs. The Feder=-! sponsorll:g ngencles
mal'. however. have the option of substitut-
Ing the Request lor Advance or Reimburse-
ment Form (subparagraph 4a) when the
Fede",1 agencies determine that It provide,;
nclequnte Inlorrn1\tlon to meet their needs.
(2) Recipients shall be "uthorlzed to sub-
mil requests lor reimbursement at least
monthly when lelteTB-ot-credlt nre nol used.
Federl\l sponsoring "gencles shall not reqUIre
more th"n the original and two copIes 01 the
Outll\)' Report and Request lor Reimburse-
ment lor Construction Prog-rarns.
5. When the Federal sponsoring Ilj;encles
need nddltlonal Inlormatlon In using these
lorms or more lrequent reports. the loll owing
sh,,1l be observed:
,11. When "ddlllonal Inlormatlon ls needed
to comply with leglslntlve requirements.
Federal sponsoring ngencles shall Issue In-
structions to require recipients to submit
such lnrormatlon under the "Remarks" sec-
lion of the report.,.
b. When necessllry to meet specIfic pro-
!:nm needs Federal sponsoring &gencles shall
submit the proposed reporting requirements
to the Financial MAn~gement Branch. Budget
Review Division. Office of Manal(ement "nd
Budget lor approval prior to submission of
the reporu lor cle:u-ance under the pro-
visions ot OMB Circular No. A-40.
e. When a Federal sponsorIng agency has
determined that a reclplent.s sccountlng sys-
tem does not meet the Sto..ndnrds Jor Fl-
n"ncl~1 Management contained In Alt"ch-
ment F to this circular. additional pertinent
Intormatlon to lurther monItor g7"nts and
other agreements mill' be obtained upon
written notice to the recipient until such
time o.s the system Is brough t up to st..nde.rd.
d. The Feder"l sponsoring agency. In ob-
taining Inlormatlon 8.5 In pl\ragrl\phs a. b
and c above. mus' comply v..lth report cle"r-
ance requirements of the Office of Manage-
ment and Budget CIrcular No. A-40. e..s re-
vised.
6. Federal sponsoring agencies h"ve the
option oJ shading out any line Item on any
report thnt Is unnecessary lor declslon-mak-
I nl) purposes.
7: Federal sponsoring agencle:; should ac-
cept the Identical lnlormatlbn 1rorr. the re-
clolents In machIne usable lormat ;ft com-
puter printouts In lieu ot prescribe<! lormats.
8. Federal sponsoring agencle;; m"y pro-
vide computer outputs to recipients when It
will expedIte or contribute to the accuracy
ot reporting.
9. Feder"l sponsoring agencies "re nuthor-
I..ed to reproduce these lorms. The lorms lor
reproductIon purposes can be obta,lned from
the Office 01 Man3.gement and Budget.
FINANCIAL STATUS REPORT I. HO(.., A.(He"> AHO OPlQAH,UnOHA' (U"(HT TO "HICH ......,.... II 'UI"'ntO r HO(I<" aov.HT 00 OTH(O 10."mNIHa\ OMB App'ovod \ ..r.( 0'
HU"'If" No. aO-R0180 I
(Follow inJllnuttO'tuI 0" th" b(l(:k) ,....C[!;
I1[CI,.1[I'(T OR'OANllA1'10H ,,..:.......o.of t",....,.,." ...-tA.lff. ;'u,lv.Ai.., ltr ('".1_1 t. (Iofl"lon" lotP'f"'1CATlOH HU....lft I~' ftI(CII"1UCT ACeoUH'T HU....r,. OJ!: IO[N'TlnIHG HUWIl" ... rnU.l Jll'fl"'OlfT I" IA111
o .[! o NO o CASH n "'CCAU"l
.. ,ItOJ(ct IQ"AN'l' N.,"OD l.!u i..,,,..,Ic..,...,.) .. I"'tJltIOO COVflll(O If 1'1-411 II[r'OR'T
rROM (Ho.Or., ~v. ~" I TO (Al...IA, ot.r. ,.......1 'ROM CNIt..,,,. .c.... .._r) TO 1'-"'_'''.11010', .....,
STATUS Of ruNDS
(0) (b) (e) (4) (.) (f) TOTAL
rROGR^,~ S I FUNCTlONSI ACTIVIT IES ~ (g)
"~t OUtlAyt previously reportl"d $ $ $ $ $ $ $
Total OUtlRY' this report period
(.,11I.' I'roRulm Income c,..,.dltl
-
Ntt outlllY' Ihi, roport r'lNiod
(/..i,u ~ min"J Ii", C') I
N~t outlfty, to dale I
(Li"~ 0 plu.. lin, d) .
i I
Lt~~.' Non.F~flr..1 ShAr! or outlay1
--
Tor,.1 F'NtlHel ,herll of oulleY1
(lJi"" ~ mi"ulI lint f) I
I I
Totlll unllQuldllted oblig8tion1
L,u: tlon-Fed'lrll sherl!' nf unllQuldsted
obllqll1lon. shown on IIn1 h
Fl'dl'lr81 share of unllquld.tlM1 obligation. "
Total Fed!,.,1 ,hue 01 outlays 8nd
unllQuidatltd obliAlJtlons
Total cumulfttivlJ emount of FlId.,.1 fundi
authoriud ,
Unobllgllltftd blll"nell of fed"ral fundi OF AUTHORIZED CERTlrt"ING DATE REPORT
I. TYPE 0' RATE 'ROVISIOUAl\ 0 P'UD[T[FUAIHtD U. ClR'TlrJC,ATIOH SIGNATURE SUBMITlED
0 o ,,"". 0""0 I certify to thl bfttt 0' my knowte<l., and b4. OFfiCIAL
(PIlJt:I "X" in fJppf'tJpn-o.tf 60z)
O'"l!CT I c_ DA~( I d. TOTAl AMOUNT Ie. 'EOERAL IJ-fAR[ lI.t th.t thll report II cornet .nd compll'te lod
~tNn b. AAH thAt all oullly. ."d unlh1uldlt&d obl1l1'lI1lonl TYPED OR PRINTED HAME AND TITLE TELEPHONE (,.\ r," <0'1'.
',rI for the purponl ..t forth In the lwerd numb." a"d ntnu'\o-nJ
::~::'~::':~:~:f~:~" ",~..._f"'''U d..~," "-e.._., (to' i"f_..."fv... r.f1"'''.4 h r.4.."..J '~",.;..., _-.,., i... ,"""","''''..e. ~u. documenl'.
ITAMDA"O '0-';" ae (1'-7S1
')-101
EXHIBIT I
Il',...c;,ltl-cf by ome_ 0' ",. I"_._".,."t _"d Bud._t
CIRCULAR HO. A.ll0
-'
0
.....
.....
(')
<ll
0
.....
s::
Q)
::J
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to
<ll
3
<ll
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-
Q)
::J
0-
m -
c
0-
to
<ll
-
n
~
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C
Q)
.,
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I
-"
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,
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o
01
I
-'
Office of Management and Budget Circular A-110 (7/30/76)
INSTRUCTIONS
Please type or print legibly. lIems I. 2, 3.6.7.9, IOd, lOe. 109, 10i. 101. 110, and 12 are ,e!f.explan.tory.
specific instructions for other items are ., 101low':
1,.,..,.. Efttry
.. En1f'r the emplcryoer Idenllnc..etlon number au-IRned by
th. U.S. Intemal Rt"Vrnut Servlc.e or f1C[ (lnnitution)
c.ode. If reqUired by the fe<lenllpons.oons asency.
5 This spece II reM'rv.d for en IIccount number or othf'f
identltYlnl numbers thllt milY be> assiRnf'd by the
rec.ipient.
Enter the month. day. end yea' of the bellinnl", snd
endln, of this project period. for formulA 1\"."'1 that
11ft not ......roed on . project balis. shOW the s,ant
po rlo<l.
10 The DUrpoou of vertical columnl (a) through (I) II to
provide (mential oatil tor each ptogrem, hmC1'0n, end
ac1.lvity in the budR~ IS IIpprovrd by the federllllpon.
50rlng .,eney. It additional columns lire needl'd. use liS
many adelltlonal forms .s nM'ded .nd Indicate p'r~
number In 'pAcP provldpd .In upper right; however. the
tat.ls of .11 programs. lun.ctions or activities should be
5howrn in column (8) of the fin:t pape.. For all'recmtnts
pertelnlns to s.c....u.l CIItalas: of Fflderal DomeStic
Assistance pro~rems that do nol require II further
iunctlonel or ec:1IV'lt)' clu,slftcatlon breakdown. enter
under columns <I) through (f) the lUle of the program.
for ,rBnu or other luistlnce egrMments containing
muttlple programs where ont or more progr~m' reQuire
III further breekdown by function or activity. use I
J.eperate form for each prO@'fltm "howing the applicable
'unctions or Ilctivltie-$ In the up.ratt columnl. For
lumnh or other euistance agreements containing ~eY.
erel 'unctions or actiY'lties which ere funded Irom
~tlll programs. prepere a ,epHllte fom'l 'or eech
activity or 'unction .....hen requested by the Federei
&;'JOnsonng ageney.
106 Enter the net outlay. Tt,ls .mount st\ould be the urne
as the amount repone-d In Une 10e of the lest n:por"..
If there hes been an Ildjustment to the emount shown
Pr"eYk>usty. plDeSt! enech explanation. Show zero If tt,ls
., the Inttlill report. .
lOb Enter the tOIDI rrt)t!ls progrem outleY' (less rebet".
re1unds. and other C1is.counU) tor this report period.
Including dlsbuncmenls of cash rullzed es program
income. For reports tNit are prepl~ on . cash
basts. outlaY" en the s.um of Bctual cesh disburse.
mpr.t's tor gooos and u'rvice~. the amount of Indirect
expens.e Chllf'it"d. the value of In-kind contributions
8.pplied. end the amount of cash edv&nces end
payments mlldll to contractor, end sub8'~nteC5. For
reports prep.a~ on In eccrued expenditure basis. oll\-
la~ IlIr~ th. sum o~ actual cash disbursemenh. the
amount of Indl~ upense incurred. the value or In.
kind contributions IIPpllee::. end the net increase (or
oecreas-e) in the emounts o~ by the recipient lor
roods and other property re-ceived and tor aervlces
per1orme-G by employees. contractors, lubgrantees. end
other payees.
J".,.. Enfry
J()c [n..r the . mount of .n prOs:!'ltm Income re.allzf:<1 In
thi, ~nod that is rr-qui,~ ~ the terms .nd con.
dittons 01 the federallWlrd to bf' Of"ducted from total
p""II"'Ct cosh. ror reports prt:"""d on , cash bIIsh,.
en,,,r thf' .mount 01 c.ash inn'tne I.cpjve(j durinR the
reportlnE IW'r,od. fo' ,.pons preperP'd on en IIccruel
blllis. ent~' the IImounl.ol tncome t.,nl'd since the
berinning of the reportine period. Wt.rn the t~rm, or
conditions .lIow pro"em Incom!: to be' edded to the
total lI'WArd. explain )n rem"rks. Ih. source. IImount
end disposition ot the Income.
101 [nt., amount perlalnl"'l to the non.F'~e'el share of
prOi'ram outlers Induded In the emount .'?.n line t.
10h [n1er total amount of unIiQ.uldete-d obligations tor this
project or pros,."m. includinlj; unliQuldl'ltpej oblirations.
to subrrantees and con' rectors. Unliquidllte-d oblt(la.
tions are:
Cesh bnls--obllletiof'ls Incurred but not .paid:
Accf\Je-d expenditure bni..--obli811tions Incurred but
IOf which. en outlay he, not been ncorded.
Do not inchJde any emounts that have ~n lnclud~
on linn a thtriUrh ,. On the final report. line h should
hllve . Jero belanee.
101 Ent.r the Federal share of unliQuldatC"d obliFatlons.
,hOW'n on line h. The amount shown on this line should
be the dlner.nce between the emounU on lines h and I.
lOk Enter the sum of the lImounts shown on lines E and J.
II the r.port Is '10111 the report should not contain any
unliQulOartld ob1iB.t~ons.
10m Enter the unobl\glted balllnce of Federzl lunds. This
.mount should be the dlf1erenct berween lines k and l.
lIb Enter rete In enect dunng the reporting period.
11c Enter .mount of the bau 10 which the rate: was applie<i.
lId Enter total .mount 01 indirect cos1 cheried during the
"port period.
l1e Enter amount of the Federal share cher@e-d durin, the
repon period..
II mOAl then one rete was lloplied during the project.
perLoc:. include I separate schedule sho.....ing baseS
a"einst which the Indirect cost retes were applied. the
respective: Indirect rate-s the mon'h. dl)'. end year the
indirect 'at~ w~re in eflKt. amounts of indl~t u.
pense charf:ed '0 the project. and the Federal share 01
indirect expense charaed to the projecl to date:.
A-110:6
..
'\
I
.1
Office of Management and Budget Circular A-110 (7/30/76)
A-110:7
Approved by OHice of M.n"R!'ment and Budlret. No. BO-ROJ 82
FEDERAL CASH TRANSACTIONS REPORT 1. hdtul ~s,orin, .r..-nq and otlUliuliorul .I~""."t \0 whi(~ thi, "port
is lubmtthd
(Sce in...~tructicms on the back. 11 rcport i..1 lor more than one gran t or
a..~si.sta7lcc agreement. attach completed Standard Form !7.f-A.)
2. RECIPIENT ORGANIZATION .c. r.d.nl rDnl 0( tit... iONltifict. 5. ~eocipi."I'. Kcount "..mbtr ...
IiOf' "umber lo.ntifyi". ,u,,,,b.,
Namt : 6- l.U.,. of uedit ftumber 7. lnt per"''''' '.CHICh., Ml,,"~
NtH,,'urr Givc total number lor this rcriod
a'ttoCl St,...d :
B. P.ymt:"1 Voochen u.dil.-d I. 9. trM'ury thee\. nui.,.ed (wMCh,..r
)'OV, .cc.ou" t ur J\.Ot dtpo.ittd)
Cilw. SUIt. 10. PERIOD COVERED BY THIS REPORT
o..d ZIP Cod.:
3. FEDERAL EMPLOYER ~ fROM (mo"th, d.d~. VflQr) TO (",.".t.ll., dor ~tGr)
IDENTIFICATION NO.
a. Cash on hand beginning of reporting period $
b. Letter of credit withdrawals '.
c. Treasury check payments
11. STATUS OF
FEDERAL d. Total receipts (Sum 0/ lines b and c)
CASH e. Total cash available (Sum 01 lines a.JlM d)
f. Gross disbursements
(Sec Bpecific g. Federal share of program income
instructions
on the back) h. Net disbursements (Line / minus line 0)
i. Adjustments of prior per;ods
j. Cash on hand end of period $
12. THE A\.10UNT SHOWN 13. OTHER INFORMATION
ON LINE llJ. ABOVE,
REPRESENTS CASH RE- a. Interest income $
QUIREMENTS FOR THE
ENSUING
Dalls b. Advances to subgrantees or subcontractors $
I .
14. REMARKS (A (ta.ch a.ddit.4onal sheets 0/ plain papcr, if more space is rCQuircd)
15.
CERTIFICATION
SIGNATURE
DATE REPORT SUBMITIED
I certify to the best of my
knowledge and beliel that AUTHORIZED
this report is true in all re-
spects and that all disburse- CERTIFYING
ments have been made for
the purpose and conditions jl OFFICIAL
of the grant or agreement,
THIS SPACE FOR AGENCY USE
TYPED OR. PRINTED NAME AND TITLE
(A... Cod.)
(N","b..r)
(Ez:h_tc")
TELEPHONE
Z72-101
EXHIBIT 2
STANDAffO rOR~ Z72 (7-76)
Pr.v:rib~ by OffICII ("!f M.n",~m.nl lInd AuOQ:_t
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Office of Management and Budget Circular A-110 (7/30/76)
A-110:8
INSTRUCTIONS
P!e85. type or print legibly. Items I, 2, 8, 9, 10, lId, lIe, llh, and 15 are self explanatory. specific
Instructions for other items are as follows:
1 '-"
Entry
3
Enter employer identification number assigned by the
U.S. Internal Reve-nue Service or the fleE (institution)
code.
If this report covers more then one grent or other
agreement, leave Items 4 and 5 blenk and provide the
information on Standard Form 272-A. Report of Fed.
.ral Cash Trenuctiol'lJ--Continued; otherwis.e;
4
EntRr Federal grant number, agreement number, or
other Identifying numbers if requested by sponsoring
a~ncy.
5
This space rMerved for .n eccount number or other
Identifying number that may be auigned by the re-
cipient.
6
Enter the letter of credit number that applies to this
report. If all advances were made by Treasury check,
enter "NA" for not appliCllble and leave items 7 and 8
blenk.
7
Enter the voucher number of the lut letter-of-credit
peyment voucher (Form TUS 54(J1) that was credited
to your account.
III
Enter the total amount of Federel cash on hend at the
beginning of the reporting period Including all of the
Federal funds on deposit, Imprnt funds, and und~
po.ited Treasury checks.
llb
Enter total amount of Fede~1 funds received through
~yment vouch en (Form TUS 54(1) tnat were credo
Ited to )'OUr account during the reporting period.
lIc
E~ the total alnOlJnt of all Feder&l funds received
during the reportinc period through Treasury checks,
whet~ or not d~ted.
Ilf
E~ the ~lll F~I Cllsh dt.bursements, made
during tn. ~ period, klclvdlng cash received
M Pf"09I"lIm income. Disbursements n used here also
include thl amollnt of lldv.nc~ and payments ~
r9funds to subgl'8ntHs or con tuctors, the gross
amount o-f direct salariM and weQ'K, includini the
Efltry
If em
emplopee', shllre of benefits if treeted as a direct cost,
interdepartmenti\1 ch8rg~ for supplies and services.
llnd the amount to which the recipient is entitled for
Indirect costs.
112' Enter the Federal ,hare of program income that was
required to be used on the project or program by the
terms of the grant or agrtten:.:nt.
11 i
Enter the amount of all adjustments pertaining to prior
periods affecting the ending balllnce tnat have not
been included in any lines above. Identify each grant or
air~rnenl for which edJustment was made, and enter
an explanation for each adjustment under "Remarks."
Use plllln sheets of paper It additional space is required.
llj
Enter the total amount of Federlll cllsh on hand "t the
end of the reporting period. This emount should include
all funds on deposit, imprest funds, and undepos.ited
funds (line e, less line h, plus or minus line I).
12
Enter the estimated number of deys until the cash on
hllnd, ,hown on line Ill, will be expended. If more than
three days cash reqirements are on hand, provide an
explanation under "Remarks" as to why the drawdown
wel made prematurety, or other reasons for the excess
cash. The requirement for the explanation does not
apply to prescheduled or automatic adVllnces.
13a
Enter the "mount of Interest earned on advances of
Federal kinds but not remitted to the Federal agency.
If this Includes any am<XJnt earned llnd not remitted to
the Federal sponsorinc agency for over 60 days, explain
under "Remarks." Do not report Int&rest earned on
advances to States.
13b
Enter amount of advance to secondary recipients in'
cluded in item llh. ..
'\
14
In addition to providing explanlltlons as required above,
Jiw additional explaMtion deemed n.ces~ry by the
reei~nt and for in-k>m>lstion required by the Federlll
sponsoring "gency in compliance with governing legis.
~tion. Use plllin sheets of paper It addition-III SpllC"e is
raquired.
("
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Office of Management and Budget Circular A-110 (7/30176)
A-110:9
Approved by Office of MBnell'emen\ fine Bud;.', No.
SO.ROlel
1. FEOERAL SPONSORING AG[I~CY ~ND ORGANIZA.
1I0NAL ELEMENT TO WHICH TH~ RlPORT IS SUB.
MinEO
3. PERIOD CoVEREO BY THIS Rll'oRT (A. .h""',, on SF
171 )
FEDERAL CASH TRANSACTIONS REPORT
CONTINUATION
(Thill frn-", ill c"",p/.,.d and allMh,d to Slo,.,u,rd FM""m r71 onlv wh.n
T't-pC)'rtin.g TnbTt thon 01'U' pro",' C'lT (1~l!li..,t(1n.t'( a"rt(m~nt.)
2. RECIPIENT ORGANIZATION (Gi,', no..... onlV Q.' ,holt'" in il.", t. SF
171)
FROM (~o",h. "'r. .._..)
I TO (H_I).. 6or. 1"".")
4. List intorm.lltion below for each tren\ or other 8sreement coverf'd by tnls report. Use add.lioneI1orm:i if more space is reQuired.
FEDERAL GRANT DR OTHER IOENlIF I RECIPIENT ACCOUt.:T NU....S(R FEDERAL SHARE or NET DISBURSEMENTS
CATION OR O'TH[R
IDENTIFYING NUJroII8(R NO DISBURS(MENTS ((;.r.., CUMULATIVE
[:5how G ,ubdivi.JiDn bit otheY" idr:nti. ..._."'.............. 11''' ,....~..II... i_ N('T DISBURSEMENTS
'ym" """,,h,.,.. if -equ.irul bV lh. tll''''. ....,....rdl fOR REPORTING
f .d.....t>l Sr....""nrAp."cv) P{fUOO
lal (~l Cd (d)
$ $
,
,
.
-
\ .
..
"
S. TOTALS (Sh.ouli CO"'n"fHlpond .,[lilh a.mcunu Ilh.o1.L1r. on SF ~7t Cl.8 I
follov..,: co~t.L17\.n (~) the l'I'a:m..e ~ lint J I h; coJU1TLY\ (d) thl .u"" oj line s
J Jh c"d 1 JI. tlf Ihls SF %7f and cumulo.t\vc di.t;bu'urmcnL, a^OWTl 0'"' I $ $
lo.st rcpO"r"t A Hacil ~%pLan.ation of ar.v difl~reJU.tJ,.) i
...
212-201
5T ANDARo FORM 272-/.. (7.761
p,..rrli-.c ~'V Orll..... ('f Mo...oC......-., l'T'd B"d~..,
Office, of Management and BUdglt
'-cular A-110 (7130/76)
.I
REOUEST FOR ADVANCE
OR REIMBURSEMENT
Approwd by Office of M.nA.emenl and
BudS... Ho. ~ROIB3
""GE
o.
a. --r..... ~ htA. .._.
o ADVANCE 0 ~~~TfJURSE.
b. .. 0'.... .P~" ....
""GU
2. BASIS OF REQUESl
o CA.H
1.
TYPE or
PAYMENT
REQUESTED
o PARTIA, 0 ACCRUAL
i---rAiTI~L. "AYM[NlR['QU~
NUMBER fOR THIS REQUEST
(Set tut".ctiOM DR. ba.ek)
J. fEOERAL SPOJt(SORIHG AGENCY AND ORGANIZATIONAL LEMENT TO
WHICH THIS RU"ORT IS $.Usl,unED
o FlHAL
.t. EO[RAl GRANT OR OTH[R
IDENTIfYING frilUMS(.R ASSIGNED
IV nO(RAL AGENCY
a... [MPLOYER IOENTlflCA ON
NUMBU'
7. RfCJPI[HrS ACCOUNT "'U"8[1II
OR IDENTIFYING NUMBER
a. PERIOD COVERED BY THIS RE UEST
'ROW t_.tL. ...... .....r} TO t_lA.. .......-..-1
I. REClpt[NT ORGANIZAtiON
10. PAl C W~.. .MdI....... ._1.. ..,"_. u.- ~__')
H._
N_..
H_'"
.-.4 61n-.
H_'"
~.11._
C......8.....
....,1./rc.:
cu"S....
.oJ "t' Cod. :
II. COMPl/TATIOH OF AIolOUHT ~ REIMBURSE" EHTS I ADY A/tCES REOUE"STED ..'
(..) (b) (t)
, ,
PROGAotoMS/FUHCTIOHS/ACTIVlTIES ~ TOTAL
a. Tobl p~re", (A. ./ dot.)
outlays to date $ $ $ $
b. z.,...: Cum..l.t...... I)roIIram Income
t. ::: ~m outlaY' (Uow .. .........
d. Utfmated net ce.h ovtt.ys for advance
period
a. T"",' (S..... ./ 1Wl... d: d)
f. Non-Fed'r111 tJhe,.. of amount on Mn. .
I. f'ederwC .lM.,.. of amount on line ,
h. federal payment. prhio...aty l'8Quested -.
I. ~11i~.~ ""'" requ..tad (I,;"" 11
I. M,.a nee< rlquired by lot month
month, wn.n r9qU..tad
by rode..., rrantor wr-..cy
tor UN in makin, pnoo 2nd month
Khe-dvled advances
3r-d month
12.
AlTl:RNATl: COMPl/TATlOH FOR ADVAHCES ONLY
a. E.atimelad Fed....' cash O<I\loy. th.t will bo mad. dun,. per10d toYeAd by \he wdvar1C9
$
b. Lu..- Estlmllted balance of fed.re' cash on hand ., of belrinning of advance period
c. Amount reqUeM~ (LAM (l ""","""", li1W b)
11,
s
CUfTlf1C.IHlOH
SIQMA TVRE or AI/THO_IIlO CDl:Tlf'YINQ o,nCIAL
OA TE REQUEST
SUBNlnED
I u.my that '" tho boo( of my knowlodtr<
end beliar the data aboYe ue correct and
ttwlt all outleY'> were made in accordance TY"lD OR. I"1II...,T[O HANt: AND TtTL(
with the 'F'8nt condition. Of othet' ..'"'
""M and that peyment i& due and he. not
-- p_.ty P9Quwwtod.
A_ c-<.
H_"_
.. ........
n:U"'40H[
1101. spoKe for ....-r ....
''''''''0' EXHIBIT 3
aTA.NQ.Nm r"OMiiI no (1-76)
I"n-.ctfbed by ()fftc.e Iff M."....,..,.nt .nd a~
CIRcuLAR NO. A.1I0
Federal Grants ManaQement Handbook September 1978
A-110:10
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Appendix I
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Office of Management and Budget Circular A-110 (7/30/76)
INSTRUCTIONS
Please type or prinllegibly. Items 1. 3. 5. 9.10, lIe. lIe, I If, Ilg. IIi, 12 and 13 are self.explanatory;
specific instructions for other items are as loltows:
I(rm Efttrv
Indicate whether reQuest " preplred on cash or ac'
cruN! e..pendlture basis._ All requcsU tor .dv.nccs
shall W prepared on II CUh basis..
[nter the Feder.1 grent number, or other identifying
number .s.signed by the 'Feder.1 sponsoring agency. It
the advance or 'eimbu~ement i. lor more than one
lI'''8nl or other a.,e-ement. Insert N/A; then. show the
_Slre,.le amounts. On .. M'parate sheel. It"t .ach
gran, or asreoement number and the Federal sh.re of
outlays made ageinst the S,.nt or agreement
6 [nle, the emp~yer Identification number anignt<l by
the U.S. Internel R~enulI! S.rvice, or the nCE (institu-
tion) cOde if r"e'Qunted by the Federal .Heney.
This 'Pl'lc. is reserved tOf' an account number or other
IdentityinE' number that may be: .nigned by the
rKipient.
Enter the month. day, and yelr tor the beginning and
ending 0' the pe-riod eo~red in this reQuest. 11th, ,..
Ques1 is tor an advance or tor both an advance and re.
imbursement, Show 'hI' period that the advance will
ccwer. If th. reQuest Is 10r r.imbunemenl. s.how the
period lor which the rtimbonement is requested.
Note: The Fedtt'lll sponsori"s .gencies have the option of
reQuiring r"e'Cipi""ts to complete items 11 or J 2. but not
both. Item 12 should be uled when only e minimum
amount of intormetion is neeoded to make an advance
.nd outlay intormation contained In Item 11 can be
ootain.d In I timely manner from other report,.
II Th. purpose of th. vH1tca' ~umn. (a). (b). and (e). is
to provide .poet!! 10r sepel"Bte cost b~akdowns when e
rro;ect Nil been planne<l and bvdaett'd by pr08'f'lm.
function. or activity. II additional columns ere needt'd,
It""" Entry
use IS many addition. I torms as n.-eded and ind,ute
pase number in space pf"OYided in upper right; ~.
ever. the summary tat.als of .11 progr.ms. functions.
Of' activities should be shown in the "total" column on
the' tln.t fNlge.
I Ie Enter in "u 01 d"te". the month. d!lY. end year of the
.nding 0' the accounting period to whir" this .mount
epplie5. Enler program outlay, to dalt' Il'el 01 relunds.
rebeles. .nd dlscol.mh), in the eppropn.'f: columns.
for requt"'Sts J'lrepared on . cash basis. ouUays ere the
5um of .aual cash disborwm..nt.s '01 Roods and Ioerv.
len, the amoun' 01 indire<t upenses Cha'leod, the
v.lue of in.kind COI'llribulicw,.I Ilpplie-d. and the .mount
of CMlh advances and p,ayments made to subcontrac.
ton and lubr';Cipients. for requests pr8f'8red on In
accrued e..pendllu~ basil. outlays lire th. sum of the
actual cash dlsburnments. thf' "mount of lndirect u..
pense! incurred, .nd the net inc'ease (or dKrease) In
the .mounts owed by th. recip1ent for 10ocS$ and other
pro~rty recf"iveod end .Of' ,ervice-s. ~"onne<f by em.
ptoyees. conttllcn. lubgntntees end oth.r P8y~s.
1 J bEnt.' the cumu\atJve cash income received to date, H
reouHts ar. ",,-cp8red on .. cash buis. For rrqut"'Sts
prepared on an aecr'\H'd ell:pendtturt bas-is. ~nter the
cumulative income eamed to date. Undeor etth.r Desis.
enUr only the emount applicable to progntm income
that ... rf'Qulred to be used tor the project or pro-
.'em by the terms of th. gn'"t or other .greement.
lId Only when milking requests tor edvanctI peym.nt!,
enter the total estimated amount oi cash outlays that
w;1l ~ m.d. during the ~riod cov.t'!!d by the advancl':.
13 Complet~ th~ certiflc.tion Mfor. wbmirting thil
request.
..
A-110:11
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Office of Management and Budget Circular A-110 (7/30/76)
A.pPf"Oy~d by Office 0' Men.rement end PACE or
OUTLA Y REPORT AND REQUEST FOR REIMBURSE. Budgn, No. BD-ROI81 ..AQE!
MENT FOR CONSTRUCTION PROGRAMS 1. rYP( 01 REQUEST L ""SIS Or R[QUtsl
(S.., in"'T'1.ld,(nLI 0'1'1. ba.ck) o fiNAL o PARTIAL o CA!.H o ACCRUAl
J. HD[III.Al SP()"lSORtNO ACUofCY ,AWD ORGANIZATIONAL (L[lollN'T TQ 4. rrO(RAl CA."NT 0" OTH[A s.. 'AAlIAL f'''YMUIIT "H.QUEST "0.
WHICH THIS R[PORT IS suewlntD ID[NTININO NUMBER ".$.StCPUD
BY 'COrRAL AC[NC,
L ~~:''eO[YLll['' IO[NTlnCATlON 17. ",C"I[NT 'CCOUNT O. OTN" rtl10D corOl'tll ., TMrs .ron
IOlNTlnlNQ HUiloI8Ut
'''0'' I"'~ ~,. ...--1 10 1"'-'" ...", ...-1
to AtCll'1tHT O'Ul,...,..IZATIOJIC ID. rAYU I"........ -.-..Jw.U H -.. U 41.1--' u.- M- ,)
H._ , H_ ,
H.. .-J. Ho.~
..- , ...... ,
Cu" cu,.
.s...u .wwl "I..... ..J.
rlf> eM" : ZIP C....:
II. STATUS or f\JNOS
PROORAMS-rU NCTION s-,>,CTlVI T 1[5
CLASSlrlCATlON (0) (b) (e) TOT"L
..-
.. Adminlstretrve u,pcnu $ $ $ $
b. Preliminary expenM
c. lend, stNctures, nght-of.wey
d. Archltt'Ctutlll engineenn, beslc ,"" I
.. Other en::hlte-ctural englneertnl f~s
I. Project Inspection Ion
g. Land development
h. Relocl!:Uon expense I
I. Relocation peymeoU to Indivlouall end
buslness.e,
). DemoHtlon end ",move I .
k. Construction end projKt Improvement
cosl
I. E.ou,pm-ent
m. Miscellaneous cost
n. Total cumullUve to dete (sum o(linC'S I I I
fI lhru m)
o. Deductions lor progralT\ income I I
p. Net cumulative to date (Line n minus I
line 0)
~. Federal snere to Cate I I
r. Rehabili1ation Irants (1000/, r.im./ I
bursement)
.. Tota' Federal share (:.um of Iinu q I I I
and r)
I. Federal payments prf'v.ously ~'I I I
quested
u. Amount ~~U"I.~ 10' '.;"'bu....m.nt I $ I $ I $ I $
v. Percentage of t)flysieal completion 01
proj.cl % % % %
12. CERTlrlCATION
SICNA1UA[ OF A!J1HORIZ[O CEAllnlHC
OF"fICIAt..
, OAn REPORT
SUBMITTED
I T[L[,.HOH( IA__-'-.
.._b.......... .-1-1
OA.Tt. SICHED
1 certify th.e;t to the best of my knowledgf'
end belier the billed costs or disbu~e.
menh are in 8ccordlH)Ce with the terms
of the project and that the reimbu,.nm~nt
represent, the Federal shere due which
has not been previously reQu!'$teG find
tnat In inspe<:tion h2ls be>en per10nned
and 1I1l work is 'n accordance with the
terms of the 8Wi1rd.
., R[CIPI[NT
b. ReDreseontativf'
certityinE to lint
11.. I TYP[D O. PRINT[D N....["""O TIlL[
I T[l'(PHON[ IA~_ f'....u
,..-.Il........_~..1
211-101
ST.""O"'RO ro"" 271 17_76~
,.......,......,., (\ff'~........."._......O"O'\..-.cl'h..~
EXHIBIT
A.110:12
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Office of Mam~gement and Budget Circular A-110 (7/30/76)
INSTRUCTIONS
Pip".. type (l( prinlleglbly. Iiams 3.~. 5. 8. 9. 10. 1 h. and llv are ..If,upl/l......tory; specific instructions
tor ol.h.r Items.,. as follOW$:
h.... .....,.
Jl;4.~ .... ........"....te INK.. H the reQue3t ... ,.,,~. the
a~ .....4 .....Id ~ lhe "....1 (lII09t of the
~
2 B~ wtl..th_ ......,nts a" ~ en ." ~
~ndtwN ei( c.eh tft.~...c ~.
. ......, ..... .~r ktlPntl~ "umber ......""' by
the U.S. In'.1'1'WI4 Re'Y'."".~. fer net (."s1lt\ltlon)
00<1. N _uene4 .,. _ ~ed....1 _o>q>J.
This .,..c. k ~ tor an accoun1. nurnb-r et' ett\K
I6enltly.... nu_ _ mey M ._'-.... by "'"
r-IlMen\.
II The ,.....,ow M _I _m... 101 through Ie) k to
,.""",,0. ..-or ~ MfNI,.... ...-( .......~ ~ .
-"P4I p~ hat ~ ~".... aM ~ed by pft)-
...."'. tv.ftetto" 8( ...-ttvttr. " M~ ~nc II'"
.-.dlld, UM .., "".ny .ocUtion81 tenn& .. .....-ded .IMI'
""db'. ,... ........,""..,.... ~ in.,.,..,..... right;
~r. .... .....m.a"Y toN" .r .M ,."'<<,..~ tu....
"""1, C'" ..~ .hould t.t ~ In ,he .'"'tota'-
~um" It" the ftM ,.... All .~ .,. ~... ..
. Ml'mU~ be....
114 In.,. ameu""- .,.ndeod.., woh Ihms.. tTtrwII. ~I
_. .....ul. ol _1_ .nd .... _ edmlnlot..ltve
...,....~. "'-Iud. .... emeuM of lntet'ftlt ~
wtl... .~ by progre'"- ........Uon. IJa,o .how
\he .mount M ~............ . _perMe Ilhe.t..
II_ __ _ -'"'ng .. _ -n< ol 1ecM;.., .nd
I!Ies.4cnJnc. w.eldng s.u~ ~ m.-ps" siRktnlf ......
1001.... .nd .. _ -n< ~I.-d prio< ID _I
eOlI~.c;jIlll.
He .........R .mounts dlroctly __ ""'" \he.........
_ wt Iond. ......, IltNCtW_ .ne related rIBht-o!.
_.
IIC _ _ _ Ie< _ wt .,.hlt-...I ....___
J l. E.ttWor ~ ~tt.cturwl "'~nc ~. Do not
lnc:luo. ..,.., .~M:s ~ .. Kne d.
III ,_......-~ _ _ """'" ol _....-.... _
- ,.....-.
IIg [_ 011 __ __ _h .... __ Df
a....d ~.nr the ~ 1It~ of the rant ;. .net
~_. The ._ ,........."1 10 Iond ............
Jftef'IIt ~ .....a..:et4 'fIIl"ith rn.jor C*"ICiructiof"l
~ .... ...c:W-"" ~ lIMe "'-.r<MY -.nd .ntenld on
-~
Ilh ltne<_........._.-... ~..-
~............rtd....t CO'J'U 04' ~~....,...
...., f'ecI _). Do """ inchod. __ _ed lor"
...........ton NlT'fini~jw ~~ theee arncll'\,lnG
~ be ~W4M4 W. ~ Ilh...", onlwM a.
IIi [.mer.... .rft()un( e( ~ioft ~)"'ITlrnt:s ~ ~....
~ip~ \0 lIII'.poUNd ,...,-.0"'. '.I"ft"K. busi"'-S eon.
c.ms.. and non,.,.._ otyenlZ.8'tion&.
'I.- .~
11' flew p"08Ia IIftl."... ..-d ~ af emr'lOY'" of the
Ndp6.nt ...c:I ,..)'"M"""tl to .....rd perty c.ontnK1ors ej,.
,.,c:Uy ~ in pertonnt"g d~ion Of" ,~l 0{
..~ 'tOm ~ NU'Id. AA proc..-da tram 1h.
..... 0( ~ "" ..,. I'9IfnOV8I of strvC'tur.. .hould be
cndfted to 1hM IICCOUnt; tt~r"I!tby reftKtinl ne{
.....ou..u it fleqUind by th4I hde...1 aaeftllr)'.
1111. [...., thoee .mowflllt.s IlUOC....ed wt1:h the actual con.
IlIInH:tion of. e.6diUo.. \10, or rntoratior'l of a facility.
N.c. lndude in .his CIft~, the amounts for pro;.ci.
'm~ ...eh a, -..wen, .,........1. I.lltd.elp("&..
- 1OPtifC.
111 [nt_ .~nb fer ." eqvtpme"". both .hll'd .nd mo'f'.
.bh.., .-eN""'" .. ~Iprnent ul-t'd tor con.truction. rOf
exAm"". ".m\.8....mty ,,"-ached leb0r8tory tab.u, bvu(.
... ...)(110 ""-uet -yo""" ~(WatH. onks, chai". .nd
Iabonolo<y equ;pm-L
11", ~.... ~nb lOt aM M.em. no( 1p.e<:1f\c1l1?, me".
-.... -.
11f, EM.... t.... total. eum,,"Uvt .......oun{ to dote .........Ich
w.ouki~"'" Mtt'ftof anes a "~h m.
1 Le Ibwter the total afnOUnt 01 program ."come applied to
..... rant << c:ontntOl. ..,.....,nent. ..cep( income In.
.......... ~ an. J. klenUty Of'! . "p"reb .h.... 01 p.Ilpef
..,. aoun::es .nd ~ ol ~ l....m...
11, fttt.... tt... r..c. cumu~ amount to dote: which .hovkS
be the .........c. ......... on NM n minus the _mount
... line o.
1141 _ the __ _.. Df ... .mount .how" on II... p.
Ill' Entet the ..,.,..,.,.. of rehebUtbtlon rrant p.eymenh
fInlIodeo 10 lndNWuek ......,." pf'OI',..m ",-i.let.,... providn
100 ~ ~ .,. 11>0 federal .wonC)'.
lit Ent... the kUI _ wt F_...I pern-ts ~iously
--. " IhIc h>mI lo ..- to< ~& r..m.
.........-..
}1., 1.Mer.... MnOUr.c: now ~nr rwq~"'" ~rM'
I'n...t. n. ~ ~kf M tt't4 .Ii"..,~nc. be1'we.n
the .."........ --.. ... I.ine.I. I .nd t. If d i "..n nt, ...
,.w..-._--
lh To M ~ed .,. .... ~ oll\Cle{ ..no it r..
~ ...... ttM ~taon at .... Pt'Olf"'llol'T\. Th. o.t..
ahouId be .... .ctu.l "'It t.... Iotm I~ lubm;ned \0 th.
Fo6efal w_.
12b To be ~"ed by.... of"I"tcN.I repn-Ml"'all.....
lI"ho _ c:.rtttyinc \0 the ~n( of pro;ed compl.tion
as ~ed tot in Itw .....,.".. 0( the .Alnt Of ..c.......",.nt.
A-110:13
'\
I
Office of Management and Budget Circular A-110 (7/30/76)
AnAcHMENT H.-CIRCULAR No. A-110
MONITOJUNC AND IlEr'ORTJNG J'ROGRAM
PERf'ORMANCE
1. This attachment sets forth the proce-
dures for monitoring and reporting program
performance 01 recipients.
2. Recipients ShRll monitor the performa:lce
under !:rants and other agreements and.
where appropriate. ensure that time sched-
ules are being met. projected work units by
time periods are being accomplished. and
other 'Perlormance goals nre bel ng achieved.
This review shall be made for ench program.
function. or activity of each agreement as set
forth In the approved appllcatlon or award
document.
3. Recipients shall submit a performance
report (technlcnl report) for ench I\greement
that brleny presents the following Informa-
tion for each program. function. or f\ctlvlty
Involved ItS prescribed by the Federal spon-
Boring agency:
a. ^ comparison 01 I\ctual accomplishments
with the gonls established fO,r the period. the
nnc!lnp of the Investigator. or both. H the
output 01 programs or projects cnn be readily
quantlned, such quantitative data should
be related to cost data for computation 01
unit costs.
b. Reasons why establlshed goals were not
met.
c. Other pertinent Inlormatlon Including,
when ..pproprlate, analysis and explanation
of cost overruns or high unit costs.
. 4. Except as provided In a nnd b below,
and In subparagraph 3n( 1), Attnchment G,
recipients shall submit the performance or
technical reports to Feders.l sponsoring ..gen-
cles and the Financial Status Reports cov-
erln!: the same period In the frequency estab-
lished by Attachment G of this Circular and,
where Bpproprlnte, a final technical or per-
formance report after completion or the
project on a dnte specified by the Federal
sponsoring agency. The Federal sponsoring
agency shall presc,rlbe the frequency with
which the performance reports wlll be sub-
mitted "1th the request for ad,'ance or reim-
bursement when that form Is used In lieu
of the Flnnnclal Status Report. Except as pro-
vided for In parBgraph 5 belo"', perlormance
reports shall not be required more frequentl~'
than quarterlj' or less frequently than an-
nually. Federal sponsoring Bgencles may
":alve the requirement lor recipients to sub-
mit perlormance reports with the financial
rcports under the following circumstances:
a. When the reCipient Is required to sub-
mit a perlormance report with a con tlnua-
tlon or renewal application.
b. When the Federal sponsoring agency de-
termines that on-site technical Inspections
..Old certified completion de.t:>. will be sum-
clent to eval uate construction projects.
c. When the Federal sponsoring agency re-
quests annual financial reports on a fiscal
year basis but It IS necessary to get l\nnunl
prcgress reports on a calendar year basis.
5. Between the required perlorman~e re-
porting dates. events mny occur that have
sl!:nlficant Impact upon the project or pro-
gram. In such Instances. the reCipient shl\ll
Inlorm the Federal sponsoring agency as soon
as the loll owing tj'pes or condl tlons become
knou'n:
a. Problems. dell\j's. or adverse conditions
that wlll materially anect the ability to I\t.
taln program objectives. prevent the meet-
In!: or time schedules nnd gOl\ls. or preclude
the attaInment 01 project work units by es-
tl\bllshed time perlods. This dl~closure shall
be accompanied by II. stl\tement of the nctlon
taken. or contemplll.ted. and any Federal as-
Sistance Deeded to resolve the situation.
b. Favorable developments or e"ents that
enabje time schedules to be met sooner than
I\ntlclpl\ted or more work units to be pro-
duced than orlglnl\lly projected.
S, l! an)' performance r.... I e..... conducted
b\' the recipient discloses the need lor change
I~ the budget estimates In accordance with
the crlterlll. established In Attachment J Co
this Circular. the recipient shall submit a re-
quest lor budget re,'lslon.
7. The Federa) sponsoring agency shall
make sIte visits II.!' frequentlj' I\S practicable
to:
a. Review program accomplishments and
management control systems, and
b. Provide such technlcnl I\sslstance as
ml\l' be required.
8. Federl\1 sponsoring Rgencles 5hl\1I submit
proposed technical and performance r*'ports
to the Omce at lIlanl\gement I\nd Budget for
approvl\1 In accordl\nce with the report clear-
I\nce requlrements of OMB Circular No. A-40
as re,'lsed.
AnACIlMENT I.--CIJICULAR No. A-IIO
P^ \" M!:N'T REQUIRE:MENTS
1. This attl\Chment estn.bllshes the re-
quired methods 01 making payments to recip-
Ients. These methods will minimize the time
elapsing between the disbursement bj' these
recipients and the transfer of funds from the
United States Trel\sury to these reCipients
whether such disbursement occurs prior to
or subsequent to the transfer of funds.
2. Paj'ment.s can be made to recipients
through a letter-ol-credlt, nn advance by
Treasury check, or a reimbursement bj' Treas-
sury check. The followln!: definitions apply
lor the purpose of this attachment:
a. Letter-o/-Credil.-A letter-at-credIt Is
an Instrument certified by II.n authorized om-
clal or a Federal sponsoring agency that au-
thorizes a recipient to draw funds .....hen
needed lrom the Treasury, through a Fed-
eral Reserve bank and the reclplent's com-
mercial bank, In I\ccordnnce With the provi-
sions of Treasury Circular No. 1075, as re-
vised.
b. Advance by Treasury check.-An ad-
\'ance bv Treasury check Is a payment made
by a TreltSurj' check to a reCipIent upon I~
request before outlays are made b~' the
recIpient, or through the use of predeter-
mined payment schedules.
c. Reimbursement by Treasury check.-A
reimbursement bj' Treasurj' check Is a Treas-
ury check paid to a reCipient upon request
lor reimbursement from the recipient.
3. Except for construction grants and
other construction agreements for ......hlch op-
tional payment .methods are authorized. as
dcscrlbed In paragraph 5. the letter-of-credlt
method shall be used by Federal sponsoring
agencies If all 01 the follOWing condItions
exist:
a. 11 there Is or wUI be a continuing rela-
tionship between a recipient and a Federal
spc-nsorlng agenc)' lor at least a 12-month
period and the total amount of advance pay-
ments expected to be received withIn that pe-
riod from the Federal sponsoring agency Is
S250.000 or more. s.s prescribed bj' Treasury
CIrcular No. 1075. For JOint funded projects
the Treasur)' has authorl.zed a dollar criteria
or SI20.000. .
b. il the recipient has established or dcm-
onstrated to the Federal sponsorlns I\gency
the wllllngness and I\blllty to maIntain pro-
cedures that will minimize the time elaps-
Ing between the transler or lunds and theIr
disbursement b~' the recipient.
c. l! the reclplent's financial ml\nagement
s\'stem meets the standards lor fund control
and nccountablllt)' prescribed In Attachment
F to this Circular. "Stnndards for FInancial
Mnnagement Systems."
~. The method 01 advancln!: funds by
TreMur\' check shall be used. In accordnnce
.....lth the pro,'lslons or Treasury Circular No.
.I
A-110:14
1075. ",'hen the recipient meets 1\11 of the re-
quirements specified In paragraph 3. above.
exeert tho," In subparagrl\ph 3a.
5, The reimbursement bj' Treasury check
method shl\ll be the prelerred method If the
recipient does not meet the requlrement.s
speCified In subpl\ragrl\phs 3b and 3c, I\bove.
At the option of the Federal sponsoring
I\gency. this method may also be used on any
construction agreement, or If the major por-
tion of the prop I\m Is accomplished through
prlvl\te mIHket finl\nclng or Federl\1 10l\ns,
and the Federnl asslstl\nce constltu tes 1\
minor portion 01 the program. When the re-
Imbursement method Is used, the Fedeml
sponsoring agencj' shall make pl\yrnent
within thirty dnys alter receipt of the bIlling,
unless the billing Is Improper.
G. When the letter-ol-credlt procedure Is
used. the recipient shall be Issued one con-
solldnted letter-ot -credit whenever possible
to cover I\ntlclpated cl\sh needs lor all grl\nts
and other agreements awuded by the npoll-
sorlng ngency. Llke....lse. to the extent po..l-
ble. when the advnnce by Treasury check
method Is used. advnnces should be cun-
solltlated (pooled) for 1\11 grants and other
ngreements made by the sponsoring agency
to that recipient. . ,
7. Unless otherwise required by \1\,,', Fed-
ernl sponsoring agencies o5hl\lI not wllhhold
paym!nt.s for proper chuges made by recipi-
ents at any tlme during the project or pro-
I(rl\m perlo'd unless (a) a recIpient has failed
to complj' with the program objectives. award
condl tlons. or Federal reporting require-
ments: or (b) the reCipient Is Indebted to
the United Stl\tes, and collection 01 the In-
debtedness will not ImpaIr accomplishment
01 the objectives of a project or program
sponsored by the United States.
Under such condltlons. the sponsoring
agency may, upon reasonable notice. Inform
lhe recipient that pa~'ments w1l1 not be mnde
lor obllgntlons Incurred alter a specllled dl\I.e
until the conditions nre corrected or the In-
debtedness to the Federal Government Is
liquidated.
ATTACHMENT J.--CIJICULAIt No. A-lIO
REVISION or FINANCIAL rL.ANS
1. This attachmen t sets forth crl terla and
procedures to be followed by Federal spon-
sorln~ agencies In requiring recipients to re-
port 'deviations lrom financial plans and to
request approvals for financl..1 plan re~
visions.
2. The financial plan Is the financial ex-
pression 01 the project or program as ap-
proved during the application I\nd/ol' l!ward
process. It may Include either .he Federa~ and.
non-Federal share, or only the Federal share,
d:pendlng upon sponsoring agency require-
ments. It should be related to perlormance
for program evaluation purposes whenever
I\pproprlate I\nd required by the Feder..l
sponsoring agency.
3. For nonconstructlon awards, recipients
~hall Immediately request approvals lrom
Federal sponsoring I\gencles when there Is
re:lson to believe thl\t within the next s:ven
dl\Ys a revision wlll be necessary for the
101l0,,'lng reasons:
a. Changes I n the scope or the objectl\'e of
the project or probT"am.
b. The need for additional Federal fund-
In!:.
c. The transfer ot amounts budgeted lcr
Indirect costs to absorb Increl\ses Indirect
costs or vice versa. 11 approval Is required
by the Federal sponsoring agency.
d. The expenditures as require appro,'nl In
I\ccordance ,,'Ith FMC 73~. "Cost Principles
lor Educational Instltutlons." For all othcr
awards. appro,'al requIrements lor other
Items of expenditures may be Imooned II they
arc consistent ,,'Ith those In FIIlC 73~. No
other requirements for speCific Items may be
I
Office of Management and Budget Circular A-110 (7/30/76)
Imposed unless .. devl..tlon has been ..p-
proved by the OIDee or Mana.gement o.nd
Budget.
e. ~clplents pl"n to tr"nsIer runds "lIotted
ror tr..lnlng ..lIow..nC<lS (direct payment.s t.o
trainees) to other c..Legorle6 or expense.
(. None or the substantive programmatic
work under.. gr"nt or other agreement may
be subcontracted or transrerred ....Ithout prIor
..pprov..1 of the Federal sponsoring ..geney,
This provision does not "pply to the purchase
or 8upplles, DULterlnl, equipment. or gener..l
support servIces.
S. The Federal sponl'orlng Il{;ency may
R150. n.t Its option, restrict transler.; or funds
tlJT\ong dIrect cost cn.tegorl"" lor awnrds In
v..hlch the Federal shnre exceeds .100.000
when the cumuln.tlve amount or such trRD6-
Icrs exceeds or Is expected to exceed !lve
perCDnt of \.he total budget as la....t n.pproved
by the sponsoring agency. The s"me crIteria
shall apply to the cumul...tlve amount or
transfers among prograln6, functions. nnd
aotlvltles when budgeted separately ror an
awn.rd, e~ept that the Federal &ponsorln!;
"Senc)' &hall perrnl~ no trn.nsler tbat would
c..use ..nl' Federn.] npproprlatlon, or pnrt
thereof, to be used for purposes otber than
thooe Intended.
6. All other' changes to nonconstructlon
budgel.s, except for tbe changes described
In pnr..graph 8, below. do not require ap-
proval. This Includes tbe use or recipIent
funds In furtherance of program objectives
over and ..bove the recipient mlnlmum sbare
Included In the a.pproved budget.
7. For construction a....ards. reclplenl.s
sh..lI request prior ...pprovals promptly from
Federal sponsoring Il{;encles for budget re-
visions wherever:
a:. The revision resul ts from changes In
the scope or the objective or tbe project or
program, IUld
b. The revision Increases tbe budget
amounts of Federal funds needed to com-
plete the project.
8. When a Federal sponsoring agen=y
makes an ay,'ud thn.t provIdes support, ror
both construction ..nd nonconstructlon work,
the Feder..l sponsoring agency m..y requIre
the recIpient to request prior "pproval from
the Federal sponsorln!; Il{;ency belore m~kln!;
any rund or budget translers between tlle
two types or ""ork su;>ported.
9. For both constructIon and non construc-
tlon awards, Federal sponsorIng "gencles
shAll require recipients to notlly tbe Fed-
er"l sponsoring agency promptly ",'henever
the ..mount or FedenURuthorlZed funds IS
expec"t.cd to exceed the needs or the recipient
by more th"n 1;5,000 or flve percent of tbe
Federal award, whichever Is greater. This
notlllca.tlon will not be required If a.ppllca-
tlons for adds 1l0nAl fundJng are submlt.te:1
for continuing grants or contra.cts.
10. When requestIng approval lor budget
r~vlslons. reCIpIents shall use the budget
fonns th"t were used In tbe application
unless a letter request ...111 suffice.
II. Within 30 calendar days from the dn.te
of receipt or the request for budget re~:-
slons, Federal sponsoring "gencles sh,,1I re-
vl~"" the request ..nd notlly the recipient
whether the budgct revisions have been ap-
prove<!. II the revl"lon Is stlll under con-
slderallon a.t the end or 30 calendar da\"S
tr.e Federal sponsoring ngency shall InfO~"';
the recipient In WTltinr 01 the date wben the
recipient mRY expect the decL~lon.
ATTACHMENT K.--<::lRcu0.n No. A-lID
CLOSEOUT rnocrnURES
1. This attachment, prescribes untlorm
closeout procedures for Fede"'l brant,,; and
other ngr~ments with recipients.
2. The follOWing deftnl tlons shnll apply for
the purpooc of thL~ attachment:
... Cw...eoul.-The closeout of a grnnt
agreement II; the procc..... hy whlcb a Federal
"pon.sorlng Rj;ency detenn!ne5 tll"t all "p-
pllcable administrative actions and all re-
quired ....ork of tbe ~eement have been
completed by tbe recipient and the Pederal
sponsoring &gency.
b. Dole 01 complction.-The dale 01 com-
pletion I" the date on whlcb all wort under
gra.n1.6 a.nd otber ~eementJ! Is compleLed or
the date on the awa.rd document. or any
. supplement or amendment tbereto. on wblch
Pederal sponsorship ends.
c. Duallowcd co~t~.-Dlsa.llowed cootJ! "re
those chnrgcs to .. grn.nt or otbcr &greement
that the Pedernl spon.o:orln(: a.gency or IL~
representative determines to be unallow-
..ble, tn "ccordanC<l wtth tbe applicable Fed-
eral cost prInciples or other conditions con-
tained tn tbe ~eements,
3. All Pederal sponsoring &gencle.. shall es-
tabllsb CI05eout procedures tbat Include the
followln(: requirements:
a. Upon request. the Pederal sponsoring
a[:eney shall mILke prompt pnyments to n
recipIent for "Uowable rclmburs"ble cosl-';
under the gTant or otber "gTeement bclng
elosed out.
b. The recipient sball immediately rerund
nny balance of unobllg"ted (unencumbered)
c!LSb that tbe Federal sponsorln(: agency has
advanced or paid and tbat Is not autborlzed
to be retained by the recipient ror use In
other gTa.nts or other agreements.
c. The Federal sponsoring agency sball ob-
tain from the recipIent witbln 90 calend"r
days after the date of completion of tbe
"gTeement all linn.nclAl. performnnce, nnd
otber reports reqUired as the condition of the
lYP"eement. The ..gency may grant extensions
....ben requested by the recipient.
d. When ..uthorlzed by the grant or otber
agTeement. tbe Federal sponsoring a.gency
sb..lI mAke a settlement for any upward or
downward adjustments to the Federa.l share
of costs after tbese reports Me recelvcd,
e. The recIpient shall "ceount for ..ny prop-
erty ""qulred ....Itb- Federal runds. or re-
ceived from tbe Government In ..ccordance
wltb the pro~lslons or Attachment N to this
Circular. Property Mana.gement Stnndards.
r. In tbe event a final audIt hOoS not been
performed prior to tbe closeout or the gTant
or otber lYP"eement, tbe Federal sponsoring
'llgency sball ret.aln tbe rlgbt to recover nn
appropriate amount a.fter fully considering
the recommendations on dls..llowed coots re-
sultln(: rrom tbe lin,,1 audit.
(. SuspensIon a.nd termination procedures
are contntned In Attachment L to tbls Cir-
cular.
ATTACHM!:NT L.-CIJlCt1LA1t No. A-lID
SUSPENSION AND TERMLNA.TION PBOC"E:.DU"ftLS
1. This attachment prescribes unUorm
suspension and termination procedures for
Federal gTants a.nd otber agreemenl.s wIth
re=lplents.
2. The following definitions sha.ll apply
fer the purpcse or this attachment:
a. Tcrmination.-The termination of a
gr"nt or otber agreement menns the cnn-
cellatlon of Federalspon.-.orshlp. in whole or
In pnrt. under an agTeement at "ny time
prior to tbe date or completIon.
b. SU3pcnsion.-The suspension or a. gTant
or other agreement Is a.n a.ctlon by a Federal
sponsoring Il{;ency that temporarily su.'-
pcnds Federal sponsorship under the g-rnn t
or otber agree9'ent. pending corrective ac-
tion by the recipIent or pending a decision
to terminate tbe gT"nt or other agTeement
by the Federal sponsoring agency.
;I. All Federal sponsoring a.cencles shall
provlOe procedures to be follo....ed when a
recipient bas failed to comply w1th lhe terms
-'
A-110:15
or the gr..nt or other ag-reement Rnd condi-
tions or stnnd..rds. When thRt occurs. the
Ft'der..1 spollsorln!; ..gency mRY, on reMon-
able notice to the recipient. suspen,d the
gr"nt or other "gTeement, ..nd withhold fur-
tber p"yments, prohibit the recipient from
lucurrlng a.ddltlon..1 obligations or funds.
pend In!; corrective nctlon by the recipient, or
" decision to termination In ...ccordo.nce with
paragr"ph 4. The Federal sponsoring "geney
shall a.llow ..11 necessnry and .proper cos1.6
that tile recIpient could not rea.onablv avoId
during tbe period of suspensIon provld~d that
tbey meet the provisIons of the nppllcable
Feder,,1 cost principles.
(. Fedeml sponsorln!; agencies shall pro-
vide for the systematic settlement of ter-
minated gra.nts or other agreements Includ-
Ing the following:
a. Term/nation lor cause.-The Federnl
sponsoring agency ninl' reserve the right to
terminate any gTant or other agreement In
wbole or In pnrt at any tlme berore the dn.te
01 completion. whenever It Is determined that
the reclplen t has failed to comply with the
conditions or the agreement. TI1e FedeTlll
sponsorIng ngeney shnll promptly notll)' the
recipient In wrltlng or the determlnntlon and
tbe rensons ror the termination, together
v.-ttb the e!Tectlve dnte. PRyments made to
recipients or recoveries by the Feder,,1 spon-
sorln!; agenclcs under g",nts or other a.gree-
ments termlnnted for cause 1.hnl1 be In ..c-
cordance with the legal rIghts nnd liabilitIes
01 the parties.
b. Tcrmin<1tio-n lar convenic7Lce.-The Fed-
eral sponsorln!; agency or reclplen t may ter-
mInate grants and other agreements In whole
or In p"rt when both parties agree that the
contlnuntlon or the project would not pro-
duce bencficlal results commensurate with
tbe further expenditure 01 funds. The two
parties shall n.gTee upon the termlnn tlon con-
dltlons. Including the e!Tectlve date and, in
the CllSC of p..rtlal terminations, the portion
to be termlnat.e<l. The recipient shall not
Incur ne"" obllg..tlons for the termln..led por-
tlon arter the effect"'e date. and shall c"n-
cel a.s many outstanding obligations as pos-
sible. The Federal sponsorln!; agency shall
a.llow rull credit to the recipient for the
Federal sha.re of the noncancella.ble obliga-
tions, properly Incurred by the recipient prior
to term In a.tlon.
ATTACHMENT M.-CIRCU'_AR No. A-lID
STANDARD FORM FOR APPLTINC FOR
T:E;DEAAL ASS1STANCE
1. This atta.chment ..,romulg",tes a stand-
ILTd rorm (SF 424) to be used by public "nd
'prlv..te InstltutloOlS of hIgher educaUon,
publIC and prIvate hospitals ..nd other quasl-
publiC and prlva.te nonproftt orgnnlzatlons as
a f"ce sheet for "wllcatlons when applyIng
ror Federal gr"nts under programs cover~d
by P..rt I, Attachment A, OMB Crlcular No.
A-95. In addltlon, agencies are partlcul"rl)'
encour..ged to etxend the use 01 SF 424 to
common programs v.1th State and loc"l gov-
ernments where this form Is now required by
FMC 74-7.
2. The SF 42( mal' also be used. on ..n op-
tlon..1 bnsls. to fulftll the requirements of
OMB Circular A-95 ror a notlflc"tlon or In-
tent. from applicant to clearinghouses, that
Federal nsslstance ....111 be "pplled for. Local
or State clearinghouse procedures will gov~rn
the use 01 the form for this purpose.
3. The stnnd"rd form wl11 also be used 1)y
Federal "gencles to report to the clearlng-
honscs on major "ctlons tnken on ,,!,pllea-
tlons reviewed by clearinghouses In accQrd-
ance ",'Ith OMB Circular A-95. and to notlly
StaLes 01 grants-In-aid aWRrded In "ccord-
nnce ",'lth Treo..sur)' Circular 1082.
I
.1
Office of Management and Budget Circular A-110 (7/30/76)
A-110:16
FEDERAL ASSISTANCE L ""'I'Ll. a. If\IW 8U 3. STAn I. """BER
~U~4-
CANT'S nON
1. TYPE 0 PREAPPLlCA TlON "'''Pll- ., DAlY IO~Hn- .. DATI :r_r _U. ....
0' eA TlOt1 r_ ......... - ~I~II
...CTION 0 ""PlICA TIOH 19 ASSIGHEO 19
fM--"... 0 HOTlfICATlOfC OF IPIT[/H ('OpL) J..8'"
,.... ,....;..u
He) 0 RU'ORT OF rEDE1lAl 1.CTlotl Ifto .. .
4. LEG"'L ",PPLIC.A.NT /RECIPIENT 5. nOI:R.A.L r:MpLOyr;R IDt:HTIPICATION NO.
.. """pliCAnl HII'" :
.. Or,aniutio" U..U : 6- I I I. I I 1
t. SlrHl/P.O. 8<u : PRO. .. HUW8tR
rI. City GRAM b. llT\.t
: .. eo..'17 :
(1',.0",
I. Sb<o : I. ZIP Cod.: rod.....!
b. tonust P..-.on tNoww ODiolo..,
.. " ,,..,.),,,,,. No.) :
~ 7. TITLE AND DESCRlnlON 0' ApPLlCANrS PROnCT 8. TYP[ Dt' ""'I'~IOAHT fRfCll'lENT
~ #-St.h ~..u.l17 -"<II.... ~
6-1 ,,'tftl.t.. ..' ~_ Hlr~.r [duc.ationJ1 ttlorillution
~ C-Subol.al. J- '"diu Trlb4
Olotricl ~t\&, (S,..rlfvl:
~nly
[-City .
~ f- wool Olrtrtd
t-3~.1 ""rpooo H"....D
~ D tJolct SA""'" .,..",..,..ri.otc
" TYP~ Of MSIST...NCE
A,...&&a,lc ,.....1 D-hrI"'~.'
~ 8-1""".....,... an"" '-othar X..tn' o.,.~ m
~ c-lo- " "",,t. to,..,.(.)
10. AREA 0' PROJ~T IMPACT (No_... 0'/ etttu, .o....HH. 11. ESTI~~"TMV1I'o- U. TYPE Of ...pPlICATION
S....... .u.) BER T DNa "'-" - C-R.,I"~ (-'" r "*' \a 1I0f'1
BVlUlTING a...R." ....1 O-Ca" 'hu,..t I Nl Eft'..,. .pJ'lTopri4h J..tkr 0
13. p~EO ~UNOING; 1,4. CONCREsttoNAL DISTRICT' 01': 15. TYPE or CHANC'E (Ten' JJ~ rr JJ...)
S I. '\P'UCAHT ~ rROlt'tT '-I"c........ Dothf'l ~lhor (Spedfv):
I. ~[Rfo.l. .00 ~ecr""" DeI'l"
A1>PltCAHT I t-t"c,...'" Dura-\ttsIl
b. .00 O-D.uu... O....Uoa
a. PROJECT ST"'RT 117. I"nOJECT (-C...ullali..
.. ST,\Tt .00
DATt 7_r-..u. 0... DURATION ~"t..rr oJ."pro- ITIJ
rI. LOCAL .00 19 N....nu ".-;ok tou.... (.)
I. OTHER .00 II. E:STtMATtD D...n: TO 7_r .-...... dov IS. EXISTING PEDERAL IDENTlFIC...TION NUMBER
BE SU~MITTED TO
I. TOT1.L S .00 'EDERAL AGENCY ~ 19
20. 'EDERAL AGENCY TO RECEIVE REQUEST (N_. Cu.,lI_ %11' ~ 21. REMARKS "'ODED
o v.. o No
~ ~, I. 1. the Dm eo{ my know-led.. .",d .......-f. t.. H '...~ ar OMB Cueular 1-95 tfth .Pt'lic..lloa ...., wbMltt-<. p4J~."t kl i,.. N",..- R....,..,.""...
d.ta i. tJ\i, ,.,....,.pJiution/.ppliuUOIl a" .t.rwctl~' th.....ll\. to apptoQ(I.h .1..rl"I'trl+VM1. .ad .n ,..po.,..s .... .rudl~: .-. .U6CA...ed
g THE l<u. ."cJ oorrMl, ~. ooewtnH'lt boo -
...PPLlCANT duly . uthoriud by .... 'OWor"ftin( boOr wl 0 0
CERTlf"IES the .~Iju"l ...d thl ulohe.url. wOl dftt'P4t' (I)
E : THAT ~ with 'h. .th~ """"AC'eI &I u.. aut..... 12I 8 0
11 .n.. it .pprvy..d. 0
(3) .
~ 23. I I. TTPEO HA.lIt AAO TIT\.! ~. II11KAT\JRE L OATE SIQHf.O '\
~ CERTIFYINC1 Y_r ......:J. do. .
REPRE.
.. 19 ,
" SENT...T1VE
OMB "'ppronl No. ~US
I ~. ,A.C;II:.NCY .u.ME
12S, APPLIC.A.. 1'__ ~ .....
TION
RECEIVED 19
i 26. ORGANIZATlON.'J.. UNiT I A7. ADMINIST~TlV[ OHIC[ 12L 'EDERAL ...PPLlC.A.T10N
~I IOENTlFIC...TlON
~ 2:9. ADOREU ao. 'EDERAL OF:"'NT
~ IOENTlFICA TION
~ 31. ACTION TAKEN 3L WND!N<: y- _oJ. ....1 I ~. 1'_r .......,;" .u..
I 0 t. AWAAOEO ST ARTtNG
I. rEl>EM!. S .00 n. M:TIOH DAn ~ 19 O...TE 19
.. 0 .. ~(J{CTEO v ~TM:T 'OR AOOITtOHAL tt<~0Jl1ol"'. 36- 1'_. _ ....u. ....
0 \. ....rUC..vlf .00
] ION (X_.... ..... ...~ ..w...~...) ~NDINC;
0 t. IlETVRItCD I'OIt t. SY^T[ .00 DATE 19
ANE1lOt.tUfT t. LO('.A~ I .00 37. REMARKS ADDED
~ o ~. DEf1!RREO Oytiel': I .00
t; I.
t( o .. WITllOIVIWl< l. TtTI N.. S .00 o Y.. ONo
3S. &. 'R blilinc ~. .ct\at\, ."" OOf'IlIftMftb. ,...~ trv.... d.rinrhou.... .,.,. ...- .. r(O(RN.. ACtHCY }..91 OfTICIN..
'EOERAL AGEI-fCY .id.ree. II .....er "*poI'l'" b ca.. .owl.. ,.....l..- 01 ran. 1.,0116 ClmoI... _6. C.....cu".....4 .....u,.J..o~9'oO.)
M. .... .... at .. ~ .aCe.
10.-95 ACnON
.
........ . ,.... .......... .............., ..., "".,...... , I ~ n ""11
"
\
~'
-I
Office of Management and Budget Circular A-110 (7/30/76)
A-110:17
SECllON IV~EM.&JtKS (Plea.8e referenu tM pr~r it.em numb" fr(ffTI Suti.o-ru I, II CYr III, if Qppli=.b~)
.. ,
STANDARD FORM 424 P/,GE 2 (1 ()-7::)
I
.I
Office of Management and Budget Circular A-110 (7/30/76)
A-110:18
GE~ERAL INSTRUCTIONS
This is a multi-purpose standard form. First, it will be used by applicants as a required facesheet for pre,
applications and applications submitted in accordance with Federal Management Circular 74-7. Second, it will
be used by Federal agencies to report to Clearinghouses on major actions taken on applications reviewed by
clearinghouses in accordance with OMS Circular A-95. Third, it will be used by Federal agencies to notify
States of grants.in.aid awarded in accordance with Treasury Circular 1082. Fourth, it may be used, on an
optional basis, as a notification of intent from applicants to clearinghouses, as an early initial notice that Federal
assistance is to be applied for (clearinghouse procedures will govern).
^PPUCMIT PROCEDl,;rlES FOR SECTION
Applicant will complete 011 items in Section I. If an Item Is not applicable, write "NA". If additionol space is needed, insert
en asterisk ....., and use the remarlls section on the bock of the form. An explanation follows lor each item:
Item
1. Merl( oppropriote box.. Pre-applk:lltiQn ond oppllco.
lion guidence is in FMC 74-7 and Federal agency
program instructions. Notlfic>otion of intent RUid.
ance is in Circular A-95 procedures from clear.
inghouse. Applicant will not use "Report of Federal
Action" box.
2a. Appllcent's awn control number, If deslred.
2b. Onto Section I Is prepllred.
30. Number eSGigned by State c183ringhouse. or If dele-
gated by Sblte, by areowide clearinghouse. All re-
QUests to Federel agencies must contDin this Identi-
fier if the progrem is COYered by Circular 1.-95 and
required by applicable St<Ite/areawide Clearing-
house procedUIll'S. If in doubt, consult your dDdr.
inghouse.
3b. Oete applicent notlfled of c1ccringhollSll k1:mtifiGr.
4b-4h. Legal name of appllCl!nt/reclplent. name of primary
Orllaniz.ntional unit ....ilich will undertake the assist.
ance activity, comp:::te address of applicant. and
name and telephone number of person who an pr0-
vide further informlltion about this nlQuest..
5. Employer identification number of applicant as as.
51gned by Internal Revenue ServIce.
60. Us.e Cat1llog of Federel Domestic Assistance num.
ber assigned to progrnm under which as:sisbmce is
requested. If more than one program (e.g., )oint.
funding) write "multiple" and explain in remare.
If unknown. cite Public u,w or U.S. Code.
6b. progrem tttkl from Federal ~talog. AbbnMZlte If
necessary.
7. Brief title and appropriZlte de5Cription of project.
For notificz:tion of intent, continue in remants sec.
tion if necessary to con~ proper description.
8. Mostly self-explanatory. "City" includes town, town-
ship or other municipality.
9. Check the type(s) of assistEnce requested. The
definitions of the terms are:
A... Basic Grant. An original request for Fcdcn51
funds. This would not include any contribution
provided under II supplemental grant.
B. Supplemental Grant. A request to increase a
basic grant in cert.llin ceses where the eligible
applicant cannot supply the required matching
share of tho basic Federal program (e.g., grants
awarded by the I\ppalachian R~iol\81 Commis.
sion to provide the applicant a matching ShIH'll).
C. loon. Self explanatory.
Item
10.
11.
12.
D_ Insurance. Se<< explanatory.
E. OthCf. Explain on rcrMrIIs page.
Governmental' unit whenl ItignificDnt and meaning.
ful impact could be observed.li&t only Iarllest unit
or units affected. such ItS State. county, or city. If
entire unit affected, list It rather than lWbunlts.
Es:timnbld numbel" at persons directly benefiting
from project.
Use appropriate code ~. Definitions are:
A... NcrK. A submittal for the first time for a new
pro;ect-
13.
B. Renewal. An extension for an additional funding!
budget period for a project having no projected
completion date, but for which Federal support
must be reo8W8<l each year.
C. Revision. A modification to p~ nature or
scope which may result i" funding change (in-
cr885e or Oecrelise).
D. Continu8tion. An extension for an additional
fundina/budeet period for a pro~ the ogene-,.-
initially agreed tlJ fund fa a dtlfinite number 01
)'!IlIf'S.
E. Iwgmontatlon. A m(juirement for additionlll
funds for a proied previously awarded funds in
the same funding/budget p<<lriod. Project nature
and scope unchanged.
lImount nlQuested or to be coritributed during, the
first funding/budget period by each hlntritxr.br.
Value of in,IUnd contributions will be included. If
the action is a change in dollar amount of an exist-
ing grant (II revision or augmentation), indiC8te
only the amount of the change. For decreose5 Cfl'
close the amount in parentheses. If both basic and
supplttnlental amount3 are included, breakout in
remartls. For multiple proe~m funding, use totals
and show prognlm brenkouts in remarks. Item deft,
nitions: 13a. amount reQuested;from Federal Gov-
ernment; 13b. amount applicent will contribute;
13c. &mount from Stote, if applicant is not a State;
13<1. amount from local gCNernment. il opplicant is
not a local gO'Y'Crnment; 13e, amount from any other
sources. explain in remarlls.
14a.
l4b.
Se<< explanatory.
The district(s) where most of actual worl( will be
accomplished. If city-wide or State-wide, covering
severn I districU. write "city-wide" or "State.wide."
Complete only for revisions ("rtem 12c), or augmen.
tations (item 12e).
15.
STf\NOI\RD FORM 424 PAGE 3 (10-75)
I
-'
Office of Management and Budget Circular A-110 (7/30/76)
A-110:19
Item
16.
17.
lB.
Approl(imete date project el(pected to beFin (usually
e~~iatN:l with estimated date of availability of
funding).
Estimnted number of months to complete project
efter Fttderal lunds ere evailable.
Estimated dete preapplir.elion/appllcation will be
submitted to Federal agency If this project requires
clearlnghou~ r....iew. If review not required. this
date would usually be s.ema as date in Item 2b.
Item
19.
Existing Federal Identification number If this 11 not
a new request and directly relates to 8 previous
Federal action. Otherwise write "NA".
20.
Indicate Federal egency to which thiS request Is
eddressed. Street address not required. but do use
ZIP.
21.
Check appropriate br.x as to whether Section IV of
fonn contnlns remants and/or additional remarks
are attached.
^PPLlCAtH PROCEDURES FOR SECTION II
Ust cleerlnehousOf' to which submitted and show
In appropriate blocks the status of their responses.
For more then three clearinghouses. continue In
remarks section. All written comment~ r.ubmltted
by or through clearinghouses must be attached.
Name llnd title of authorized representative of legal
applicant.
Applicants will elways complete Items 23a. 23b. and 23c. If clearinghouse review Is required. Item 22b must be fully com.
pleted. An explanation follows for each item:
Item
23b.
Self explanatory.
23c.
Self explanatory.
Item
22b.
23a.
Note:
Appllcent completes only Sections I and II. Section
III is completed by Federal agencies.
FEDERAL AGENCY PROCEDURES FOR SECTION III
ttem
24.
Executive department or Independent agency having
program edministra~ion responsibility.
Self explanatory.
Primary organiZ8t1onal unit below department level
having direct program management responsibility.
O1Tico directly monitoring the program.
Use to Identify non.award actions where Federal
grant identifier in item 30 Is not applicable or will
not suffice.
Complcte add~ of edminlstering office shown in
Item 26.
Use to identify award actions where different from
Federal application identifier In item 2B.
S<!lf explanatory. Use remarks section to amplify
where appropriate.
Amount to be contributed during the first funding;
budget period by each contributor. Value of in. kind
contributions will be included. If the action is 8
chanlle in dollar amount of an el(isting grant (8 revi.
sion or augmentation). indicate only the amount of
change. For deo-eases. enclose the amount in pa'
rentheses. Il both basic and supplemental amounts
are included, breakC'ut in remaoo. For multipfl: pro,
grllm funding. use totals ane show program break.
outs in remarks. Item definitions: 32a. amount
awarded by Federal Government: 32b. amount ap'
plicant will contribute; 32c. amount from State. if
applicant is not a State; 32d. amount from local
govemmc:1t if applicant is not a local government;
32e. amount from any othei' sources. el(plain in
remar.".
Ollte dctlon was ta ken on this roqu~t.
Date funds will t>ecome available.
If applicant.supplied infonnation in Sections I and II needs no updating or adjustment to fit the final Federal action, the
Federal agency will complete Section III only. An uplanatiort for each Item follows:
25.
26.
27.
28.
29.
30.
31.
32.
33.
34.
Item
35.
Name end telephone no. of agency person who can
provide more Infonnlltion regllrding this assistance.
Date after which funds will no longer be available.
Check approprillte bol( as to whether Section IV of
form contains Federal remarks and/or attachment
of additional remarks.
For use with A-95 action notices only. Name and
telephone of person who can llssure that appropri.
ate A-95 action has been taken-If same as person
shown in Item 35. write "same". If not applicable.
write "NA".
36.
37.
38.
Federal Agency Procedures-special considerations
A. TrellSury Circular 1082 compliance. Fe4eral agency will
assure proper completion of Sections I and Ill. If Sectioil I
is being completed by Federal agency, ell applicable items
must be filled in. Addresses of State Informlltion Recep'
tlon Agencies (SCIRA'S) are provided by Treasury Depart.
ment to each egency, This fonn replaces SF 240. which
will no longer be used.
B. OMS Circu/llf A-95 compli/!nce. Federal llgency will as.
sure proper completion of Sections I. II. llnd III. This form
is required for notifying all reviewing clearinehouses of
major llctions on all programs reviewed under A-95.
Addresses of State and areawide clearinghouses art; pro.
vided by OMB to each agency. Substantive differences
between applicant's reql1est and/or clearinghouse recom.
mendations. llnd the project llS finally awarded will be
explained in A-95 notifications to clc:Jringhouses.
C. Specilll nole. In mort. but not all S:lites, the A-95 State
clearinghouse end the (TC 1082' SCIRA lire the same
office. In such cases. the A-95 BWl!fd notice to the Stal-e
clearinghouse will fulfill the TC 1082 llward notice reo
quirement to the State SClRA. Duplicate notification
should be avoided.
STANDARD FOrlM 424 PAGE 4 (10-75)
'~._',
I
Office of Management and Budget Circular A.110 (7/30/76)
. ArrACHMENT N.-<::IRClTLAR No. A-110
PROPERTY MANACEMENT STANOARUS
I. This attachment prescribps uniform
standl\rds governing management of prop-
erty furnIshed by the Federal Go,'ernmellt or
whose cost WI'S charged \..0 a project sup-
por\..Cd by a Federl\l gra.nt or other ".reement.
Federal sponsoring "gencles shall require re-
clplen\..~ \..0 observe these standards under
crants I\nd other RgTeemellt..!; and shall not
Impose addlLlonal requIrements ullless spe-
clUeall)' required .by Federal law. The recipi-
ent may use It..!; own property manl'gement
standards and procedures provided It observes
the pro,'lslolls of this o.ttachment. ThIs at-
tachment also applies 1.0 subreclplent..!; Il.5
referred to In pamgrnph S of the basic cir-
cular.
2. The followln[: definitIons apply for tbe
purpose of this attachment:
1\. Reaf propcrty._,.calproperty mco.ns
land, Including land Improvemen\.6. struc-
tures and appurt.cnlUlces thereto. but ex-
cluding movable machinery and equipment.
b. Personal property.-Personal property
of any kind except reo.l propeny. It may be
tangible-having ph)'slcal existence. or Int.an-
glble-havlng no physIcal exIstence, such Il.5
patents, Inventions and copyrights,
c. Nonexpendable personal propcrty.-Non-
expendable persono.l property meo.ns tangible
personal property hM'lng a uselul Jlfe 01
more than one year and an acquisitIon cost
of e.300 or more per unit exempt that recip-
Ients subject to Cost Accounting Standards
Board regulatiOns may use the CASB Sto.nd-
ard of f-500 per unit and useful lUe of twO
)'ears. A recipient mal' use Its own definition
of nonexpendable personal property provided
that the definItion would at lell.5t Include all
tangible personal property as defined above.
d. Expendable personal property.-Expend-
able personal property refers 1.0 all tnnglble
personal property other than nonexpendable
property.
e. Excess propcrty.-Excess property means
propert)' under the control 01 any Federal
agency that, as determined hy the head
thereof, Is no longer required for It..!; needs
or the discharge of Its responslblllLles.
!. Acquisition cost of purchased nonc.z-
pena.ablc pers07laL propcrty.-Aequlsltlon cost
of an I tern of purchn.sed none>:pendable per-
sonal property means the net Invoice unit
prIce of the propert). Including the cost of
modlficaLlons, attachments, accessories, or
auxUI"r)' nppnrntus nc;::essar)' u> make the
property usnble for the purpose lor which It
W!l.S acquired. Other charges such as the cost
of InstallaLlon, trnnsportaLlon. taxes. duty
or pro\..Cctlve In-transit Insurance. shall be
Included.or excluded from the unit o.cqUlsl-
tlon cost In "ccordanee with the rc;::lplent's
regular aceounLlng practIces.
g. Exempt propcrty.-Exempt property
means tan!;lblc personal propert)' acquired In
whole or In 'pn.rt wlth Federal funds. and
Utle to .....hlch ls ,'ested In the recipient .....Ith-
out further obligation to the Fe-deral Govern-
ment except as provided In sl'bparagraph 6a
below. Such unconditional vestlns of Utle
wUl be pursu"nt to any Federal leglslaLlon
th"t pro"ldes the Federal sponsorlnr; "genc)'
with nOequ"te authority.
3. Real property.-Each Feder"l spor:sorlng
agency shall prescribe requirements lor re-
Cipients concerning the use and dlSpo:;ltlon
of real propert)' acquired partl)' or wholl)'
under !;rnnts or other agreements. Unless
otherwl$e pro\'lded by stntut.c, such re'lulrc-
mpnts. as " minimum. shnll ('0111.nll1 the
:011 o"'JIl !; :
a. Title to real property shnll vest In the
reCIpient subject to the condition that the
recipient shall use the real property tar the
authorLzed purpose 01 the project.'ns long as
It Is needed.
b, The recipient shall obtain approval by
the F'ederaJ sponwrtng 8.{;enc)' for the u""" of
real propeny In other project..!; when the re-
cIpIent determln~ th"t tl.oe property Is no
longer needed lor the purposc 01 the orlr:ln,,1
project. Use In other projects sh"ll be limited
to thOfie under other le-derally sponsored proj-
ect..!; (I.e.. granL'i or other a.r,reements) or pro-
grams that have purposes conslst.cnt with
tho"",, author17.ed lor support by the t'e<leral
sponsorlns ~ency.
c. When the real property Is no lon,:er
needed as provided In a and b ..bove, tile
recIpient sh"ll request dlsposlLlon Instruc-
tlon.~ from the Federal sponsorinG nr:ency or
Its ~uccessor Fedeml sponsorinG I\/:enry. The
Federal sponsorlnl: agency shall observe the
following rules In the dlsposlLlon Instruc-
tions:
(I) The recipient mny be permltl.cd to re-
tain LlLle a.ft.cr It compensat.es the Federal
Government In an amount comput.cd by ap-
plying tbe Federal percentAGe of parLlclpa-
tlon In the cost of tbe orlb'lnal project \..0 the
talr market value ot tbe property.
(2) The recipient may be dlrecl.cd \..0 sell
the property under guidelines pro,'lded by
the Federal sponsorIng agency and pay tbe
Fe:!eral Government an amount comput.cd
b)' applying the Federal perccnl.a.ge 01 par-
LlclpnLlon In the cost 01 the orlg1nal project
\..0 the proceeds from SAle (aft.cr deducting
actual and reasonable selling and fix-up eX-
penses, Il any. from tbe sales proceeds).
When the recIpient Is authorl:r.cd or required
to sell the property, proper SAles procedures
sho.ll be est.abllshed that provIde for compeU-
tlon \..0 the ext.cnt pracLleable and result In
the highest possible return.
(3) The recipient may be dlrect.cd \..0 trans-
fer title to the property U> the Federal Gov-
ernment provIded that In such ca.scs t.he
recIpient sbnJl be entitled 1.0 compensation
c:>mpulcd by applying the reclplent's per-
centAge of participation In the cost of t.he
program or project to the current fnJr market
value of the property.
4. Fed.eraly-own.cd n.one:rpendablc personal
propcrty,-TILle to federnlly-owned property
remains vested In the Fe:!eral Government.
Recipients 6hall submIt annuall)' an Inven-
tory listing of federally-owned property In
their custody to the Federal sponsorlns
aseney. Upon completion of t.he D.l;Teement
or when the property Is no longer needed.
the reel plen t shall report the property to
the Federa!" sponsoring ngency lor further
al;ency uUII7.atlon.
Il the Federal sponsoring agency hns no
further need lor the property, It shall be
deelare:1 excess and report.cd \..0 tbe Genero.l
Sen'lees Admlnlstrtlon. Approprla\..C disposi-
tIon Instructions wlll be Issued 1.0 the re-
cIpient after completion of the Federal
agency review.
S. Exempt property.-When st.atu\..ory au-
thority eXists, (e.g., P.L. 8~934. 42 U.s.C.
1892) title to nonexpendable personal prop-
erty aeq ulred ",1 th project funds. shall be
"este:1 In the recipient upon acquisItion un-
less It Is determined that to do so Is not In
furtherance 01 the objectives of the Federal
sponsoring acency. When title Is vest.c:1 In
the recIpient. the recipient shall hl\ve no
other obllSI\Uon or necount.ablllt.y \..0 the
Federa] Government for Its use or disposi-
tion except as prOVided In 61' below.
6. Othcr noncxpcna.ablc property.-When
other nonexpcndable t.anglble personal prop-
erty Is nequired b)' a recipient wltb project
funds. title shnll not be takcn by the Fc:!-
C'ral C'TOt"C'rnnlC'nt but ~h,,11 t"cst In the- 1"('-
clplent subjcet l.() the follo",'lnl: conditlons:
a. Right 10 lran.'fer IiI/c.-For Items of
nonexpendnble per.onnJ property havlnr, "
unit acquislLlon cost 01 ~I.OOO or more. the
Federal sponsoring ngene)' m,,)' reserve the
rlSht \..0 transfer the Utle \..0 thc Federnl
-'
A-110:20
Government or 1.0 a third party named by
the }O~cdcrR.l Government when FOuch t.hird
JHt.rly Is otherwise clig-tlJle under existIng
sLatut.cs, Such reservation shall lle subject to
the followinG stAnuards:
(I) The pr<>pcrty shall be appropriately
Identllie:1 In the graut or other asreement
or otherwise made known to the recipient
In wrl tlnl:.
(2) The F'cderal spon..o;orlng agenc)' shnll
Issue disposItion Instructions within 120 cal-
eudar days aft.cr the end 01 the Federal sup-
port 01 the project for which It was acquired.
If the Federal sponsoring agency falls to Issue
disposition Instructions withIn the 120 enl-
rmlnr day period, the recipient shall npply
the sLnnd..rds or subp..rar:raphs 6b ..nd Gc
,>5 approprlnt.c.
13) When the Federal sponsoring I\gency
exercises It..!; right \..0 ta.ke title, the personnl
property sh..1I be subject ta the provisions
ror ledernJly-owned nonexpendable property
dlscus,o;cd In paragraph 4, allove.
(4) WlleO Utle Is translerred either 1.0 the
Federal Oovenunent or to a tht.rd party ,the
provisions of subparagT1lph llc (2) (b) should
be followed.
b. U..c of other tanvible noncxpena.able
property for which the recipient has title.
(I) The recipient shall UfoC the property
In the project or progrl\lIl for whlcb It was
ncqulred as'lons as needed, whether or not
the project or pror:ram continues 1.0 be sup-
port.cd by Federal funds. When no longer
necued for the orlglnal proJect or prO!;ram.
the recipIent 6hall use the property In con-
necton with Its other federally "ponsored
activities, In the following order ot prlorlt)':
(a) Activities, In the following order ot
priority:
(b) ActivitIes sponsored by other Federal
agencies.
(2) Shared "-'e.-DurIng the lime that
nonexempt nonexpendable personal proper-
ty Is held for use on the project or progTam
lor which It was acqut.red. the recipient
sball make It available for use on other proj-
ects or programs If such other use w1l1 not
Int.crlcre with the work on the project or
progTatn for ",'hlch t.he property ,"",5 orIgi-
nally noqulred. First preference for such
other use shnJJ be given U> other project..!; or
prop-ams sponsored by .the Federal o.genc)'
that nnanced tbe property: l<Ceond prefer-
ence shall be given to projects or programs
sponsored by other Federal agencIes. If the
property Is owned by the Federnl Govern-
ment, use on other acLlvltles not sponsored
by the Federal Government shall be per-
mIssible If authorIzed by the Federal agene)'.
User charges should be co~ldered 11 appro-
prla t.e,
c. Dupo.rition of other n.onerpena.!1ble
property.-When the recIpient no longer
needs tbe property as provided In 6b above.
the property may be used tor other I\ctl"/I-
lies In accordance wltb \.he follOWing stAnd-
I\J'ds:
(1) Noncrpcndablc T""operty with a unit
acquisition cosl of less than Sl.OOO.-TIle re-
cipient may usc the property for other activi-
ties ...1thout reImbursement to the Federnl
Government or sell t.he property and re-
tnln the proceeds.
(2) Nonerpcndable personal T""opCrl)/ with
a unil acquisition cost of SI,OOO or more.-
The recipient ma)' retain the property tor
ot.hcr uses provided that compcnsatlon Is
made to the orll:lnal Fedeml sponsoring
agency or 11.1< successor. The amount of com-
penSl\t1on sball be computed by nrplylng
lhp r>erC'ent.'\gc of F'e-dernl p!\J"tlctrStlOl1 In
the cost of the orlglnl\l project or progrr.m to
the current lair market ..alue 01 the propcrt)..
]: the recipient hns no need for the property
and the property hns further \lse val uc. the
recipient shull rC<l"est dIspositIon Instruc-
tions from U,e orlg1l1a1 sponsorl n[: aceney.
I
Office of Management and Budget Circular A-110 (7/30/76)
The l"e<le",l sponsoring agency shnll deter-
mine whether the property can be u,ed to
meet the agency's requirements, If liD re-
quirement exist.. ....Ithln that agelley. the
avallablllty 01 the property shall be report-
ed to the General Services Administration
b)' the Federal agenr.y to delA:rmllle ....hether a
requirement lor the property exlsL. III other
Fedeml Rgencle.. TIle Federal sponsorIng
agency shall Issue Instruetlo1" to the recipi-
ent no Inter than 120 dnys nlter the recipi-
ent's request and the lollowlng procedures
shall govern:
(a) If 110 Instructed or 11 disposition In-
struetlons nre not Issued ....lthln 120 calen-
dnr dnys nIter the recipient'. request. the
recipient shall sell the property alld reim-
burse the Fedcml Rponsorlng agency nn
amount computed by applying to the sales
proceeds the percelltage 01 F'edernl partlcl-
patlon In the cost 01 the original project or
pro.mm. However. th'e recIpient shall be
permItted to deduct nnd retain Irom the Fed-
ernl share '100 or ten percent 01 the pro-
ceeds. whIchever Is greRler, lor the reelplent's
selllng nnd handllng expenses.
(b) If the recIpIent ts Im.tTueted to ship
the property elsewhere. the recipIent shnll
be reImbursed b)' the benefitIng Federal
agency with an amount which Is computed
by applying the percenl.nge 01 the reclplent.s
partlclpatlon In the cost 01 the original grnnt
project or program to the current lair market
ve..lue 01 the property, plus any rensonable
shipping or Interim stornge costs Incured,
(c) l! the recipient Is Instructed to other-
wise dispose 01 the property, the recipient
shall be reImbursed by the FederRl sponsor-
Ing agency lor luch costs Incurred In Its
dt.posltlon.
d. Property manallemenl standard. for
none:rpendable property.-The recipient'.
property management standards lor nonex-
pendable personal property shall Include the
loll owing procedural requirements:
(I) Property records shall be maintained
accuratel)' and shall Include :
(a) A description 01 the property.
(b) Manulacturer's serial number, model
number, Federal .toel< number, national
stock number, or other Identltlcatlon num-
ber.
(c) Source 01 the property, Including
gr&nt or other agreement number.
(d) Whether tItle vests In the recipient or
the Federal Gov~ment.
'(e) AcqUisition date (or date recel\'ed. II
the property Yo'''' lurnlshed by the Federal
Government) and cost.
(I) Percentage (at the end 01 the budl'et
,..s.r) 01 Federa) participatIon In the cost 01
the project or program lor Yo'hleh the prop-
.rt)' 9.'8.S acquired. (Not appllc..ble to prop-
..-ty lurnlshed by the F.deral Government.)
(s) LocatIon, use and condition 01 the
property ..nd th,. dA~. the Inlormatlon w..s
report&<!.
(h) UnIt acquisItion cost.
(I) Ultlmnte disposition dat.a. IncludIng
do. te 01 disposal and ""Ies price or the method
u.ed ~o determine current laIr m..rket VAlue
....h.r. A reclpl.nt comp.n~ates the Fed.ral
spon.orlnl; ..seney lor It$ ~h..re
(2) Property owned by the l'edcr..l Gov-
ernmlnt mu.ct be ms.rked to Indicate l'ed-
.ral ownership.
(3) A physIcal Inv.ntory 01 properly .h..1I
be taken and the results reconciled Yo'\th the
property records at least once ever\' twO
years. Any dlnerenc.. between quantities de-
termined by the physlca) In.p.ctlon and
thQse shown In the aceountln!> records .hall
be Inyestlgated to determine the causes of
the dlnerence. The recipIent sh..lI. In connec-
tion wIth the Inventor)'. ver11y the existence,
current utlll..zatlon. and continued need lor
the prop. rt)'.
(4) A control A),.tem "hRll be In e:trct to
lnlurt a.dequn.t.e a:o.tegunrds to pre\"~n~ l~.
damage, or theft 01 the proper!)'. Any ION,
damage. or thelt 01 nonup~ndnble property
ShRII be IIIve~tlgated and lull)' documented;
11 the properlY wn& owned by the Teder..l
Government. the re~lplent .hall promptly nO-
tify the Federal sp.'nsorlng agency.
(:;) Adequatel)' m..lntenance procedure.
shall be Implemented to )(eep the property
In good condItIon.
(Ii) Where the reclplent Is authorl7.0d or
required to "cll the property, proper ",\les
procedures shnll be estaullshed whIch would
provide lor competition to the extent practl-
caule and result In tho highest pos.slble re-
turn.
7. Expcndable personal property,-Tllle to
expendable personal property shall vest In
the recipient upon acqulslllon. If there '1. a
residual Inventory 01 such property exceeding
~I,OOO In totnl aggregRte laIr market value.
upon termlnatlon or completion or the grant
or other ngreement, and the property Is not
needed lor any other lederally sponsored
project or program, the recipient shall retnln
the propert)' for u..e on nonlederally spon-
sored activities, or sell It. hut must In eltlrer
. case, compensate the Federal Go,'erntnent
lor 1t.5 share. The amount 01 compensation
shRIl be computed In the snme manner as
nonexpendable personal property.
8. Intanlllble property.
a. Invention. and palcnts.-If nny program
produces patentable Items, patent rlghL'.
processes, or InventIons, In the cours. or
work .ponsored by the Federal Government,
such l..ct shall be promptly and lully r.port-
ed to the Federal sponsoring agency. Unless
there Is a prIor agreement betYo'een the re-
cipient and the Federal sponsoring agency
on disposition or such Items, the rederRI
sponsoring agency shall determine whether
prot.ecllon on the Invention or discovery shnll
be 8Ought. The Federal sponsorlns agency
will also determIne how the rIghts In the In-
vention or discovery-IncludIng rIghts under
any patent t'l5\led thereon--<5hall be allocated
and &dmlnlstered In order to protect the pub-
lic loterest cooslstent wIth "Governm.nt
Patent "Pollcy" (PresIdent's Memorandum
for Heads 01 Executlye Department.5 and
Ageocles, August 23, 1971, and etatement 01
Government Patent Policy as prlnte\l In 36
F.R. 16889).
b. CoPyrillh.t3.-Except 8.S otherwl.se pro-
"Ided In the terlT\.5 and conditions 01 tbe
agr~meot, the author or the recipient orgOln-
IZOltlon Is lree to copyrlr.ht ..ny boo)(s. pub-
llcatlons, or other COP)7lghtable m..IArla.la
developed In the course 01 or und.r .. rod-
eral agreement. but the Peder..l sponsoring
Rgency sha\1 r.serve .. royalty-lrer, nonex-
clusIve and Irrevoc..ble right to reproduc.,
publish, or oth.rYo'lse use, ..nd to ..uthorl,.e
others to use, the wor)( lor Governm.nt pur-
P050::5.
A'T7ACHMlCHT O.--CnCtlLA" No. ""'-110
1'kOCU".NXWT BTAtc'DAI'tD5
1. Thl< r.ttachment proyldes st..ndard. lor
uae by rec:pl.nts In establl.hln~ procedur..
lor the procurement 01 aupplles. equIpment.
construction and other >cnlce. with T.der..1
IUllds. Thes. nandard5 are lurnlshed to .n-
sure tha.t &uch mater'''}'' a.nd serYlc~'i are ob-
t..lned In an enectlv. manner Rnd In com-
pll..nce with the provisions 01 appllc..bl. r.d-
erRI I...... and executive orders. No addltlon..l
procurem.nt standarcU or requlromenU .h..ll
be Imr><>..d by the Ted.r,,1 .ponsorlng aBen-
cles upon reclplent.6 unl... .peclnc"lIy re-
quired by !'"'ederal statute or .xecutlve orders.
~. Th. standards contained In this Rtw.ell-
mont do not relieve the recIpIent 01 the con-
trActuII.I responslbllltle. Arising \llldn Its
contr..c"'. The recipient l.s the rupon"-'ble a\1-
t.hoTa,.. w1thout re-cour~e to the P'ederal spon-
sortnr,' Rgency re!;ardlng tile settlem.nt ..nd
antl,fRcllon or ..\1 e.ontraclual and admlnlJ,-
J
A-110:21
trOltlvo \sUlK ..rhlng out 01 proeuremenu.
entered Into. In support 01 " ~rant or other
R~reement. This Ineh.d.. dl!pute.. claIm...
prot~~t5 of Il'ft'nrd. ..o"\)rM eVf\.)uatlon or othf"T
mntlen of a. eontractunl nature. )'1R.tten con-
cernl". violation 01 law !\TI to be relerred to
s\leh local. State or rrdera! authorIty M m"y
han proper ",r\ltd.ctlon.
3. Recipients m..y u..e their o"'n procure-
ment r><>lIcle. and proeedur.... flowever. all re-
cipients ohall Rdh"ro to tho standl\Td. .et
lorth In pnrnf'r..phs 3 Rnd 4.
a. The recipient .hall mnlntaln a code or
standnrd.. 01 conduct thRt .hall !;oyern the
perlormnnce or 1\& officers. emploYNls or
nrent. encaged In the awarding and "dmln-
Istrat.lon 01 ."nt,,,cts u.lng P'ederal lund..
No employee. omeer or agent shall pnrtlelpnte
In the selection, award or admInistration 01
a contract In ",hlch red.ral lunds are used,
Yo'here, to hlo knowledge, he or his Immedlat.
Il\mll)', partners. or organlzntlon In ,,'hlch he
or hi. Immediate lamlly or partner h..., a
nnnnClnl Interest or ....Ith whom he I. ne!;o-
tlallng or hl\& anj' arrnngement concernln!;
pro.p..ctIH employment. The reelplenu.' 01-
tleer>. employees or agents shall nellher solic-
It nor aocept grntultl"'. la"or5 or ..nythln!;
of monet.ary value from contrnctoT5 or poten-
tl&l eontrRctors. ~uch standnrds .hnll provIde
lor dl.clpllnnry actIons to be ..pplled lor vio-
lations or such standards hy the recipients'
omcers. employees or l\f:ents.
b. All procurement "'ansncllorul shall be
conducted In a mnnn.... \00 provide. \00 the
.maxlmum extent practIcal. open and Iree
compdltlon. The recipIent should b. alert
to or!i"nlzaUon..l coomct& 01 Interest or non-
oomp..tl tIT e prl\Cllce. among oon tmctors
that mAl' restrict or .Umjnnte competition
or ot:herwl."" restre.l/\ Irt\.de, In order to .n-
sure objectlYe contra.ctor perlormance and
ellmln..t<> unlaJr cOt'lliletttlv~ ..d~ant.l\g., con-
tmclX>rs th"t develop or o,r.1t speclficatJorul,
requirements, .to.temen\<l 01 work. Invlta-
tlOn<! lor bids and/Of' requoots lor ~ls
should be excluded lrom c.om.~t1ng lor sueb
proeuremenu.. AwnrO& ~ be ma.de to the
bldd<:T /ofJeror whose bld/orr... ls re.sponBolv.
to tn. .0 II cl ta. tAon e.nd k rooe t a.d van t.ag eo\l8
to the re<:1~t. pt"IU and other lo.ctors OOD-
slderod. Sollclt.e.tIO"s s..'>ell clearly set forth
all requlrement6 thnt ~.. bidder /ofJeror mUllt
lul1\1l In ordl!'T for hli5 ~/orrer to be e.......lu-
..ted by I>h. reclplen~. Any ..nd all bld.3/o11'e"
0lR)' be rejeot.ed wben It Is In tbe redp1ent's
In~r.st to do 80.
c, All reclpl~nt6 lIoh..ll ~t<\bIl6h procure-
"",nt procech1re-s t.b&t proy\dV for, at a ulln-
Imum, the 101l0wlTlll" pr:ooeduro.lTequlrem.ents.
(I) Pl"Oposed prO&roment a.ctlops ~hall
lollow a proc-eduro to ~ure the &vo1dl\nce
01 pure-lI....lng unnecesaa.ry or ch1pllClltlve
I~ms. VI'bere I\.ppropr1e.14. an an..l~'" shall
b. .......0. 01 leMe and purche.M. Rlt<:1'n6tJ"e.s
IX> de~rmtn. ",h~ v."Owd b. the moat
.conomlcal. p"..etloa.l proc-urement.
(2) f,ollclbs.tloN lor ~oe<:I<o and ~nlc.s
.h..1l b~ blued upon a dear and ..ceurate
d....criptlon 01 llhr 'eohnlcal requlrem.enll!
ler UlI ",a\.orrl..l. prod\Kt or se:-TI~ to be
procured. Such .. d.,.crl?t.lOn shRolI not. In
eOm.p<ltltlve proou.r.mento. cont.aln I....tur....
which unduly r...trict competition. "Brand
n..me OC" oQURI" descrlptloru m<1J' be ulld
LlI .. me...n.. to Q.e nn. t.h~ performe.no~ or
oth.r _lI~nt r.qulremcnt:o of a procurement.
And ...hen IKl \1-<:1 the speclt\c leRture. 0: the
n..med bn.nd which must be met by blddors/
orr..;,rs shoJI be clee.r11 .pec.ltled.
(3) Posltlye etrorts :>hall b. mMIe by the
r.elplent.. to utilize small bustn."" a"d mJ-
nor1tv-ownrd bustnes.s sources or 5upollel
and ;.rvlc.e.. Such el'lort.s .hould ..110.... th....
sourc.. the maximum h.....lble opportunity
to COMP'\c 10. contrsc\o utll\r.tnl> l"wderal
lunr.c.
(4) TIlt type 01 proeurln~ llUtr\lm.nUl
U!e<!. ..~" l\xed price oon~T<\.oCt.'. ooet r.lJ"n-
I
Office of Management and Budget Circular A-110 (7/30/76)
bur.....!>le oontract..s. purch....."" orders. Incen-
tive contrncl..'. shall be del.crrrUned by tJle
r('Clplen t bu t must be "pproprla.te for I he
pMtloulM procuroment "ud for prom{)tlng
the best Inter""t of the pro~mm Involved,
The "cost_pll1.3-"-J><'rcentabe-oI-C06t" metJl-
od of contnlCtlng 5hl\II not be used.
(5) Contrl\.C\..' shnl be tnIllIe only with re-
sponsible colltrl\.Cton; who p""'''Cti6 Wle po-
tentlonl\.! nblllty 1.0 perform succc5lifully
under the temt5 end conditions of II pro-
posed procurement. Consldemlloll rJllul be
given to such Jfl1\.U.cn a.s con\.m.Ctor Inte{;TII)'.
record or pl\.St performance, !lnnncloJ IInd
t.echnlonl rcsourcc.~ or o.cc~bllll)' \.() other
ncccs;.n.ry rcsournoC5.
(G) All proposed sole source conlrac\..~ or
U")lc-TC only one hid or proJX>"SnJ ls TN:.Cl\'cd
In whloh the l\f:{:rcg1\te ex.pendlt\lre 15 e,-
p<"CLed to exceed 1-5.000 shl\ll be subject \.(l
prior npprovnl nt the dl,;cretl'ln of the Fed-
eroJ sponoorllJf, ~ency.
(7) Some form of prlce 'or cOGt nnnll"S1s
should be mnde In connecllon wIth e~erl'
p~ocuremen t neWon. Price I\nnlysls lTlI\)' be
necomplL<,hed In \'nrlous wny.;. Includln!: the
COlnparl50n or prIce quo!.slWons submitted.
IT>l'rket prices nnd slmllnr IndicIa. \.(lgether
wl!.h d.ll'COunts. Co<;t "!"InIY6!s Is the revle""
I\nd eVllluallon or Cl\oC.h eiCITlcnt of co...4. W
del.cnnlne r=nn.blencs:s. alloca.blllty and
allowa.bUI ty.
(8) procurement record5 l\.."'1d !lIes for pur-
chn.ses In excess 01 "10.000 &hall Include the
follo"''!lns:
(I') Basis lor contracl.Or selection:
(b) Justification lor IlIck 01 competltlon
....hen oompeWtlve bids or olTers are not
o b!.ll.1 0 ed.;
(c) BasIs lor award C06t or price.
(9) A s)"stem lor contract a.dmlnlstmtlon
ahe.ll be ffi1l.lntoJned to ensure contrnctor
conformance with terms. conditIons and
specifications of the coo tenet. and to ensure
a.dequatA; and timely lollowup ot all pur-
chases.
{. The recLplent shall Ine-lude. In a.ddltlon
1.0 provIsions to define a sound nnC: complete
'abTeement. the following pro\'1sI0M In all
contracts. These provisions shall nlso be ap:
plied W suboontr"cts.
a. Contrn.ct..s In excess of 1'10.000 shf\ll con-
t.a1n contrActual pro\"1sl.ons or condHJons
thnt will . i1o.... for a.c1ln1nlstrntl\'e. contrac-
tun.l or leg!'.1 romc<lJes In Instances In "l1lch
contra.ctors vlol&Le or brel\ch contrllct tenns.
"nd provide for such remedllll I\ctlons as
msy ~ approprlnLe.
b. All contrnct..s In excC$.; or 1'10.000 shnll
contnln sulLnble pmvl-oo;ions for Le:-mJnp.tlon
by !.he recipient Including -~"'e manne-:- b\'
....hlch Lerm.Jn"tlon ....111 be errecl.cC: and th~
bl\sls for settlement. In a.ddltlon. suc.... con-
tra.ct..s shnll describe condltlons under ....hICh
Lhe oontra.ct lTlI\Y be l.cnnlnt\.led for dctnult
a..; well M OOlHllUons where the conlrfl.Ct nmy
bt' tC'rIn!nfilcd b('(':1I,.U~C of clrclUl1-C;u\'nc~ l)c.
yond the control or Wle cont.r!'.clOr .
c. 1n ail C'ont.rf\cts for con~truct.1on or la-
('.lhl~' IJnpro\'cnlcnl Rwa.rd~ for rnorc than
3'lOO.O()(J. recll'lcn16 shn.ll ob6C<'Ve t.he baud-
Ing requirements pro\'lded In Att.achment 1J
to this circular.
d, All conlrlLC'ts IIwnrded by reclplen\..~ nnd
their oonLrI\.CLor; or subf.Tllnl.ce<; hnvln{: a
vnlue of more th"n ~IO.Ooo. sll,,11 conl..ln a
pro\'lslon requiring compliance ",,:lth Exccu-
tl\'e Order 112~6. entItled "Equnl F.mploy-
ment Opportunlt)'," ns I\meuot'd Il)' Execullve
Order 11375. nnd I\S supplemented In Depl\Tt-
lTIent or Labor rcgllll\tlOnf, (41 CFR. Pnrt GO).
c. All cont.rncts nnd ~uhgrnnt..'S In execs..o;. of
~.2.000 for cOllstructlon or rcpnlr 6wnrdcd hy
reclpien\..' IInd 5ubreclplen'1..' shl\lI Include II
provIsion for eompllnnce with the Copeland
"Anti-KICk. Dllck" hct (18 U.~.C. 874) "s
supplemented In Depnrtment 01 Lubor
re~ull\tlons (29 CFR. Pl\rt 3). This Act pro-
\'Ides thllt each contrllctor or s\lbgrl\ntee
shnll be prohibited from Inducing. by nny
means, an)' person employed In the construc-
tion. completion. or repl\lr 01 publiC worK. W
gIve up I\nl' part 01 the compensntlon to
whIch he Is other....lse entl\.led. The recipient
shl\ll report 1'.11 suspected or reported viola-
tions to the Federal sponsoring agency.
l. When required by the Federal pror,ram
legislation. all constructlon contrllcts
I\warded by the reclplent..s and subreclplents
01 more than !.2,000 shl\lI Include n provision
lor compliance ....Ith the Davis-Bacon hct (40
U.S.C. 276a to ..-7) and lIS supplemen.l.cO by
nepllrtment 01 Labor regulatlons (2g crn.
Pnrt 5). Under this Act contractors shall be
required to pay ......gcs to laborers nnd me-
chanics at a rate not less than the minImum
....ages specl!led In a wage determInation mllde
by .the Secretary 01 Labor. 1;'1 additIon. con-
tractors shall be required 1.0 pill' wages not
less thnn once" week.. The recipIent shall
place a copy of the current prevnlllng wnge
determination Issued by the Department of
Lnbor In each sollcltl\tlon and the award
01 " contract shall be condl.tloned upon the
acceptl\nce of the wnge determination. The
recIpient shn.1l report all suspected or re-
ported vlolntlons to the Federal sponsorlog
ngency.
g. Where I\ppllcable. nil contracts aWllrded
by recIpIents 1;'1 eXcess of ~.2.000 lor construc-
tion conttract..~ and in exceES or !.2.500 Ior
other contracts that In\'olve the employment
of mechanlc~ or laborers. ~h8.11 Include a pro-
\'Islon for compliance ....Ith sectIons 103 and
107 of the Contract Work Hours I\od SMet\'
Standn.rds Act (40 U,S.C. 327-330) as sup'-
plemented by Departmen.t 01 Labor regula-
-I
A-110:22
tlnns (29 CFR. Pl\rt 5). Under st'cllon 103
of the Act. eneh contrneLor sh:dl be r('-
(jutred to COlllpute lhe wnges of e\'cry 111('-
chBntc Bud lnburcr on the baf:ils of (\ slandnrd.
wor~~ dny of f. ))CHIT"f- nnd a. r.ll\llollrd work
weck of 40 hours. \I.'ork 1n. cxcC'-ss of lht
standnrd workdny or workwcrk 1:-; pcrrl\ls.slblc
IHO\'ldcd lhR.tlhc worker 15 cotnpcn:-;ntcd fit n
rnLc or not leS5 thnn ] ~1 Urnes the unsle
ralC" of pay for 1\11 hours wortcd in excess
of e hours in nny cnlcndfH dny Of 40 h(J\\rs
In the workweek. Section 101 or the Act, Is
nppllcnble t..o constr\lcUon work I\IH1 provldcs
thnl no Inborer or nlcchnnic shnl1 be rcquirrd
\.0 ".'or}~ 1n st1rroun<.1lnb~ or under \I,'or}r.tl\g
cnndlllon~ whkh firc unsnult.nry. hazarcto\l!"
or dnnl~(':r()\l5 t.o his hrnlth ;l.l1d ~I\r('ty 1\..<; de..
tt'rJulncd under conslnlc.t.I01l snfcty nnd
henlth filnJldard~ proln\ll~nt('d uy the Srcrc-
lnry of Lnbof. These rcquircl1u'nt.:, do "lot
npply t.o tilt! purchn.scs of Sl1rl'lt('~ or nlnt-r-
rials or nrUdes ordinnrlly (\vrdlnulc on the
open Innrkct. or contrnct..o; for trl\.n~portnLlon
or lraJ1~nll~")on of lnt.rlllb"Cnce.
h. Contrf\ct..-; or nl&cCmcnt...... the prtnc1pnl
purpose' of. wh)cll I!> t.o crente, develop or ltn-
prove product.s. procc:;sc~ or n1c 1.1 10<1::-;; or for
explorllUon Into !leld5 Lhnl dlrecUy concern
publiC health. snfeL)' or welfnre; or contrllcts
In the field of scIence or lechnology In which
there has been \lLLle .'OI:nlf,cant experience
oUl-,lde of work runded by FcdeMlI a.',slst-
IInce. fihall contl\ll\ 1\ notice to the ellect .that
ml\tl.crs regardlnr, right..' to InventIons nnd
ml\tcrll\ls genernted under the contmct or
n!:recment Me sullject W the rcgulnLlon5 Is-
sucd by the Federnl sponsor In!: I\gency nnd
the recIpient. The contrllCWr shnll be I\d-
l'l"ed Il5 W the source of nddl tlonal Informa-
tIon regl\rd:ng these mnllers.
I. All negotiated contmols (except those
of ~IO.OOO or less) I\....n.rded by reclplen\..'
shn.1l Include a pro\'lslon \.(l the e:"lect tllnt
the recipient. the Fcdeml spon-,orlng ngency.
the Comptroller General 01 the United StIlLeS.
or I\ny of '.helr dilly authorl7.ed represclltn-
tlves. shall hl\ve nccc"-S 1.0 an:: bool'S. docu-
ments. pnpers and records of the contractor
whIch lire directly pertinent to a speclOc pro-
r,mm for the purpose of makIng Rudlt.s.
eXl\rnlnntlons. excerpts and trnnscrlptlons.
J. ContTllcts I\nd sub{:rants 01 amounts In
excess 01 $100,000 shall contain a pro\'IsIO!)
thllt requires the recipIent to I\!,ree to com-
ply ,,'Ilh 1111 I\ppllcl\ble st..andlU'ds. orderE or
regulntl"n. Issued pursunn\. W the Clenr h:r
hct 01 1~70 (42 U.S.C. 1857 et SC~_) and the
FedernJ Wa'ter Pollution Contr"'l ACI (33
U.S.C. 1251 et seq.) I\.S n.mended \'Iolatlon.
shl\ll be reported W the Federal SNl\Sorlng
I\gency and the flel(lonal ilmce or the En-
vironmental Protection Agency. .
IFR Doc.76-2Ig04 FIled 7-29-76:8:45 am}
I
~ i
APPENDIX H
OMB
Circular A-122
~
..
, ,
I
Office of Management and Budget Circular A-122 (6/27/80)
OfFICE OF MAHAGEMENT AND
BUDGET
evcolaf A-122, "Cost Principles for
Nonprofit Organizations"
AGENCY: Office of Management and
Budget.
ACTION: Final Policy.
JlInc 27. l!IUO
To The Heads of Executive
Deparlmer:ts and Estnblishments
Subject: Cost principles for nonprofit
organizations. '
1. Purpose. This Circular estaLli:;hes
principles for determining costs of
granls. conlra::;ls Hnd olher agrl~ements
with nonprofit organizations. It docs nol
apply to colleges ar,d universities which
are covered by Circular A-Zr. Stntc.
locn\' alld fe'derally recognizcd Indian
tribal governments which are covered
by Circular 74-4; or hos;;itllls. The
principles are designed to pro,'icie that
the Federal Government bear its fair
shart! of costs cxceol where restriGted or
prohibited by law. The principles do not
a llempt to prescribe"the extent of cost
shari"g or ma tching on' grants, contracts,
or other agrecmCl:ts. However. such cost
sharing or ma tching shall not be
accomplished through arbitrary
limitations on individual cost elements
by Fede.al agencies. Provision fer profit
or other increment above cost is outside
the scope of this Circular.
2. Supersession. This Circular
supersedes cost principl~s issued by
individual agencies for non'profit
organization.
3. Applicability. a. These principles
shall be used by all .Federal agencies in
determining the .costs of work performed
by nonprofit orgllniza tions under grnnts,
coopera tive agreements. cost
reimbur:;ement contracts. and other
contracts in which costs are used in
pricing. administration. or s~lllp.ment.
All of these instruments are nereafter
referred to as awards. The principles do
nol apply to awards under which an
organiza tion is not required to acco~nt
tu the Government for actual costs
incurred.
L. All cost reimbursement subawards
(subgmnts. subcontrRcts. etc.) are
subi~cl to those Federal cost principles
apphcable to the pllrticulnr organization
concerned. Thus. if a subaward is to a
nonprofit organization. this Circular
'shall apply; if a subaward is to a
commercial organiza lion. the cosl
principles applicable to commercial
CC:1cerns shall apply; if a subaward is to
a college or university. Circular A-Zl
shall apply: if a subi1~\'ard i~ 1(1 a Stilte.
\ocal:or federa1lyrecdp1ized lnd.!lIn;
tribal government. Circular 7~ sb<lU
cpply.
4. Definitions. a. "Nonprofit
organiza/ion" means any corporation.
trust. 8"Ssociation. cooperative. or other
organization whi~h (1) is operated
primarily for sdcntific. educational.
service, charitable. or similar purposes
in the public interest; (2) is not
organized primarily for profit: and (3)
uses its net proceeds.to maintain.
Improve. and/or expand its operations.
For this purpose. the term "nonprofit
organization" excludes (i) colleges and
universities; (ii) hospitals; (iii) State.
local. and federally recognized Indian
tribal governments; and (iv) those
nonprofit organizations which arc .
excluded from coverage of this Circular
in accordance with parngrcph 5 below.
b. "Prior approval" means secu~ing
the awarding agency's pc;rmission in
advance to incur cost for those items
that are designated as requiring prior
approval by the Circulnr. Generally this
permission "o-,:ill be in writing. Where an
item of cost rf;quiring prior approval is
specified in the budget of an .award.
approval of the budget const'ilutes
approval cf t~;I\ cost.
5. Exclusion of some nonprofit
organizations. Same nonprofit
organizations. bec.ause of their size and
nature of opera lions. can be considered
to be similar to commercial concerns for
purpose of applicabiiity of cost
principles. Such nonprofit organizations
shall operate under Federal cost
principles applicable to commercial
concerns. A listing of these
organizations is colltaine<i.in.
Attachment C. Other organizations may
be added from time to time.
6. RespoflSibilities. ~ncie.s
respons'ible for administering programs
that involve awards to nonprofit
organizations sball implement the
provisions of \.his Circular. Upon
request. implementing instruction shall
be fWLIisbed to the Office of
Management <!.ld Budget. Agencies shall
designate a liaison official to serve as
the agency representative on mailers
relating to the implementation of this
Circular. The name and title of such
representative shall be furnished to tbe
Office of lv1..anaE!eDJent and Budget
within 30 davs of the date of this
Circular. "
7. AtLDchmenl.s. The principles and
related policy guides are set forth in tlle
follo...'ing Attachments:
Allachment A--Geoeral Principles
Allachrnent B-Sclected Hems of Cosl
Allachment C-Nonprofit
Organization.s Not Subject ~ This
Circular
-'
A-122:1
8. Requests (or exceptiOJls. The OUice
of Management B.nd Budget ma~' pnmt
exceptions to the requiremenls of this
Circular when permissible under
existing IlIw. However. in the interest of
achieving maximum unifolll1ity.
exceptions will be pennilled only in
highly unusual circumslances.
9. E!fectil'e Do/e. The provisions of
Ihis Circular are effective immedialel\'.
Implementlltion shall be ph3sed in by
incorporating the provisions inlo new
awards made after the start of the
organization's next fiscal year. For
existing awards the new principlcs may
be applied if an organization and the
cognizant Federal agency agrce. Earlier
imj5)ementation. or a delay in
implemeotation of individual ProTI5ions
is also permitted by mutual agreement
between ,morganization and the
cognizant Federal agency.
10. Inquiries. Further information
concerning this Circular may be
obtained by contacting the Financial
Management Branch. Budget Review
Division. Office of Management and
Budget. Washinglon. D.C. 20503.
telephone (202) 39~773. -
James T. Mclnlyre. Jr..
Director.
(Circular No. A-1Z2]
Attachmenl A
General Principles
Table of Contents
A. Basic Considerations
1. Composition of lolal cosls
Z. Factors affccting aUowabilily of costs
3. Reasonablc costs
4. Allocable cosls
5. Applicable credits
o. Advance underslandings
B. Direct Costs
C. Indirect Costs.. '\
D. Allocation of Indirect Cosls and
Determination of Indirect Cost Rate'
1. Genp.ral
2. Simplified allocation method
3. Mulliple allocation base method
4. Direct allocation method
5. Special indirect coot retes
E. Negotiation and Approval of Indirect Cost
Rates
1. Definitions
Z. Negotia lions and approval of ra les
[Circular No. A-122]
Alladutlcot A
Gc[;eral Principles
A. Dosic Considerotions.
1. Composition of total costs. The total cost
of an award is the ~um of the allowable
dlrcct and allocable indirect costs less anI'
app1ical:le credils. .
2. FOLlors o/recling c!Jo,,'obility of "as IS.
I
Office of Management and Budget Circular A-122 (6/27/80)
To be allowable under an award. costs nro~t
ml<et the following !teneral criteria:
8. Be rellfiona ble for the performance of the
award and be aUocable therelo under these
principles.
b. Conform 10 aoy limitations or exclusions
set forth in these principlcs or in the aWllrrl
as to type6 or amo~nt of cosli1ems.
c. De cobsistcl;lt wjth policies and
proccdures thot apply uniformly 10 bOlh
federally financed and other activities of the
orga niza tion.
d. De accorded consistenttreatmenl.
e. Be determined in accordance wltn
generally accepled accouniing principles.
r. Not be included as a cost or used to meet
cost sharing or mal.chillF requirements or any
olher federally financed program in either the
current or !l prior period. .
E. Be adequalely documented.
3. Reasunable casts. A cosl is reasonuble
H. in its nature or amount. i(does not exceed
that which would be Incurted by'a prudent
person under the circumstRnces prevai1ing at
the time the decision was made 10 incur the
costs. The question of the Teasonableness,of
specific costs musl be scrutinized with
particular cnre in conneclign with
organizations or separate di\'isions thereof
which receive the prepond'erancc o(their
support from awards made' by Fede'rnl
agen'cies. In determining the reasonableness
of a given cost. consideration shall be given
to:
a. Whether the cost is of a type generally
recognized as ordinary and necessar}' for the
operation of the organization or the
performnnce of the awnrd.
b. The restraints or rel]uirements imposed
by such factors as generally accepted sound
business practices. arms l'en,gth bargaining.
Federal and State laws and regulations. Bnd
terms and conditions of the awarrl.
c. Whether the indivld~1s"concerned acted
',"ith prudence ir: the circumstances.
considering their responsibilities to the
organization. ils members. employees, aod
clients. the public at large. and the
Government.
d. Significarit deviations from the
established practices of the orgJnization
which maJ' 'unjustifiably increase the award
costs.
4. Allocable costs.
a. A cost is allocable to a particular cost
objective. such as a grant. project. service. or
other activity. in accordance wilh the relative
benefits received. A cost is allocable to a
Government award if il is treated
consistently with other cosls incurred for the
same purpose in like circumstances and if i't:
(1) Is incurred specifically for the award.
(2) Benefits both the award and other work
aOld can be dis:ribuled in reasooable
proportion to the benefits received.
(3) Is necessary to the overall operation of
the organization. although a direct
relationship to any particular cost objective
cannot be shown.
b. Any cost allocable to a particular award
or olher cost objeclive under these prinr.iples
may not be shifted to olher Federal aw;uds to
overcome funding deficiencies. or 10 avoid
restrictions imposed by law or by the terms
of the award.
5. Applicable credjL~.
a. The term applicable credits refers to
tho~e receipts. or reduction of expenditures
which operate \0 offset or reduce expanses
ilem~ that ere allocable \0 awards as direct
or indirect costa. Typical exomples of such
traneoctions are: purchase discounts. rebates
or allowances. recoveries or indemnitie~ on
losses. insurance refunds. and adjustments of
overpayments or erroneous chargea. To the
exlenl thaI such credits accruing or received
by the orl1anization relate 10 allowable cosl
they shall be credited 10 the Government
either as a cost reduction or cash rclund 05.
appropriate.
b. In some instances, the amounts received
form the Federal Government to finance
orgollizational activities or aervice operalions
should be trt!aled as applicable credits.
Specifically. lhe concepl of r.elling such
crcdil ilems against relaled expendilures
should be a;:plied by the organizaton in
determing the rllle6 or amounts \0 be
orsanization in determining the rales or
arnaounts to be chllrged to Federal awards
for services rendered whenever the facilities
or otht!r resources used in providing Buch
. services have bep.n financeu clirectly. in
whole or in part, b)' Federal funds;
a( c) For rules co....ering program income
(i.e.. gross income earned frorr. federally
supported activities) see Altaclunenl D of
01\113 Circular A-ll0.
6. Advance and undersLandings. Under any
given"award lhe reasonablcnc-ss and
allocability of certain items of costs may be
difficult to determine. This particularly true in
conoecli~n with orgi%Blio~ thaI receive a
preponde.ance of their support from Fedcrul
agencies. In order to avoid luuaequent
disallowance'or dispute based on
unreasonablenel\s or nonall~ability, It is
oftp.n desirable 10 seek a wrillen agreemenl
with the cognizant or owarding 'a"genc); in
advance of the incurrence of special or
unusal cost~. The absence of an advance
agreement on anY element of cost will not. in
il~elf. affect the ;easonablenes6 or
aliocability of that element.
B. Direct Casts
1. Direct costs Rre those tha t can be
identified specifical!y with a particular fi:lal
cosl objective: i.e.. a particular a.....ard.
project. service. or other direct activity of an
crg;,niznlion. However, a cost may not be
assi<:!ned 10 lin awnrd as a direct cost if anv
oih~r cost incurred for the same purpose. i~
like circumstance. has bep-n allocated to an
award 116 an indirecl cost. Cost identified
S;1ccif.cRlly with Rwords are direcl cost of the
awards and are 10 be assigned directly
Ihereto. Cost identified specifica liy with other
filial cost objectives of the organization arc
direct costs of those cost objectives and are
not to be assigned \0 other Rward. directh' or
ir:rlirectly. .
2. Any direcl cost of a minor'amount m:!y
be trr.ated as an indirect CQ$t of or reasons of
prucucality where the or-collnt trealment fo.
such cost is consistently ilPplied to ~11 fin:!1
cost objecti\'es.
3. The cosl of cerlain activities lire not
eHowable 65 charges to Federal awards (~ee.
for e>:a:l1p\e. funn raising costs in paragraph
J
A-122:2
21 of Attachment B). However. even thollgh
these cosla lire unallowable for purposes of
compllting charge6 to Federal awarns. they
nonetheless must he treated R~ direct cost for
purposes of determining Indirect cost ra tes
Rnd be allocated their share of the
organization's indirect costs if Ihe)' represent
oclivitieswhich (1) include the salaries of
personnel. (2) occu;'v sp~ce. and (3) bcnent
from the organization's indirect costs.
4. The costs of activities performed
primarily a8 0 service to members. clients, or
the gr.neral public .....hen siRnificnnt and
neces~ar)' to the orgunization's mission mUllI
be treR ted a8 direct costs when or not
ollov.'uble and be allocoted an equitahle
share of indirect costs. Some eXRmples of
the~e lypes of activities include:
II. Maintenunce qf membership rolls.
sllbs'criptions. publicoliom. and related
functions.
b. Providing services and information to
members. legislative or administrative
bodics. or the public.
G. Promotion. lobbying, and other forms of
public rela lione.
d. Meetings and conferences except those
held to conduct the general administration of
Ihe organization.
3. !\tainlenacne. protection, and investment
of ~peciallunds nol used in opernlion of the
orguniz8 tion.
r. Administration of sroup benefils on
behelf of members of clienls includi:1g life
.and hospitRI insurance. annuity or retirement
plans. financial aid. elc.
e. Indirect Cosl.
1. Indirect costs are those that have been
inc::rred for common or joint objeclives and
cannot ue readily. identified with a particular
final wst objective. Direct Cust of minor
ar.lOunts may be treated as indirect cosls
under thi! connitions described in puapraph
13.2. auo\'e. After direct costs have beeo
determined and assigned directly \0 awards
or other work as appropriate. indIrect costs
I\r~ those rem;.;ning to be allocated to
benefiting co~. objectives. A cost m:>.y not he
allocated to an award as an indirect cost if
<lilY olhp.r cost incurretl for the iame purpost!.
in Eke circumstances. 'has been as~ig~ed to
an ",,:ard as a direct cost. 1
2. Bp.cause of the diverse characterislics
R:1d accounting practices of nonprofit
crganizations. il is not possible to specify the
typf'S of cost which may be classified U8
innirecl cost in all situation. However, typic!!1
examples of indirect cost for many nonprofit
o:'ganizations may include depreciation or
use allowance]> Of! buildings and equipmenl.
the costs of oper.ltU1g and mainlaining
facilities. and general odmioislration and
g~'neral expenses. sllch a~ the salaries and
expenses of executive of[icers. personnel
odrr:inistration. and 9.ccounting.
D. Allocation of Indirect Cast and
Dr/ermination of Indirect Cast RuIDS.
1. General.
a. Where a nonprofit or!!anizRtion has only
one rr.lIillr function. or w~,ere ail ils major
functions benefit from its indirer.l costs to
apprnximately the same degr('e. the
"Iiocr.lion of inui:('cl r.ost. Ilnd the
I
Office of Management and Budget Circular A-122 (6/27/80)
computation of an indirect costnle aa,' be
eccomplished throu~h simplified alloclition
procedure I as described in paragraph 2
below.
b. Where an orgeniution has several major
functions which benefit from ils indirect costs
in varying degrees. allocation of indirect
costs may require the accumulation of such
costs Into separale cost groupings which then
are allocated individually to benefiting
functions bv meAns of a base which best
measures the rp.lntive degree of benefil. The
ir.direcl costs r.llocaled 10 each function are
then distribuled 10 individual awards and
other activities included in tha I dunction by
means of un indirect cosl rale(s).
c. The determinotion of whot constitules an
or~anil'.alion's mnjor funclions will depend on
its purpose in being: the types of ser-'ices it
renrlers to the public. ils clients, IInd ils
members: nnd the IImollnt of effor\ It devoles
to such activities ns fund rolsing. public
information and membership nctivities.
d. Specific methods for alloca ting indirect
costs and computing indirect cost rotes along
with the condilions under which each method
should be used are described in paragraphs 2
through 5 below.
e. The base period for the alloca tion of
indirec.t costs is the period in which such
costs are incurred and accumulated for
allocation wo work performed in that period.
The base period normally should coincide
wilh the organization's fiscal year. but in any
evn!. shall be so selectee! as to avoid
Inequities in the allocation of the costs.
2. Simplified al/ocatian method.
a. Where an organization's major functions
benefit from its indirect COits to
approximatel)' the same e!egre. the allocation
of indirect costs may be accomplished by (i)
separating the orgnnization's total costs for
the base period as either direct or indirect.
<<nd (ii) di\'idin~ tbe total alloweble indirect
costs (net of ap'piic:able credits) by an
equitable dislribution base. The resull of this
process is an indirecl cost rate which is used
to distribute indir[)ct costs to individual
a warOs. The rele should be expressed as the
percentage which the total amount of
allowable indirect costs bears to Ihe base
selecled. This method should alos be used
where an organization has only one major
function encompassing a number of
individual proieLI~ or IIcti\'ities. and may be
used where the level of Federal awards 10 an
organiz[)linn is relatively small.
b. both the diroct costs and the indirect
ccsts shall exciuGe cap;:!.! expenditures nnd
unallowable coslS. I iowever. unallowable
costs which represer.t l\ctivilies mllst be
included in the direct costs under the
conditions described in paragraph B.3. above.
c. The dislribution base mar be tolal direct
costs (excluding capital expenditures and
olher distorting items. such Iii major
subcontracts or s:.:bbrar.lti). direct sr.larie5
and wages. or olher base which results in an
equitable distribution. The distribution base
shall generally exclude pa:tidpant suport
cosL< ns de[ined in paragraph ZIl of
Allac:hment B.
d. E~ce~.t where a s!Jecia! ril\e[s) io
rrquired in accordance with paragraph 0.5
be low. the .i ndiTec:t,GQ'llt 1'8 '" ~.wQ loped .... tkr
the above princ..iplm.is aro>licalo\.e .lD 8\1
award. atwe 0C!l ani.....li on. II a spocial
rate(s) is required.llppraporiate modu.CJltioru
5hllll be made in order lD develop .tbe special
rale(s).
3. Multiple al/ocolion base method.
&. Where an o~anization's indirnct costs
benefit its majodunclions in nrying degrees.
such costs shall be accumulatod into separate
cost groupirl[!s. Each grouping sha\lthen be
allocated individuslly to benefiting functions
by meani of a bnse which best measures the
relative benefits.
b. 11le groupings shall be estnullshed 50 AS
to permit the allocation of each grourin~on
the basis of benefits provided to the major
functions. Each groupi~ should constitute B
pool of expenRes that ore of like characler-in
lerms of the lllnc:lions lhey henefilllnd ill
lenlls of lhe ullOC1l1i1l1l hll~" whll~llll,til
measurs the relulive benefiti pro\'idd to each
function. The number of separate groupings
should be held within practical limits. taking
inlO conRiderulkm the materialily of the
amounts involved and the degree of precision
desired.
c. Actual conditions must be taken inlo
account in selecting the base 10 be used in
allocating the expenses in each grouping to
benefiting functions. When an allocation can
be made by assignment of 8 cost grouping
directly 10 the function benefited. the
allocation shall be made in lhat manner.
When the expenses in a grouping are more
general in nature. the allocation should be
made through the use of 8 selected base
which produces results that are equitable to
both the Government imd the organization. In
general. any cost element or cost related
faclor associated with the O'l!anization's
work is potentially adaptable for use as an
allocation base provided Ii) it can readily be
expressed in terms or dollars or other
quantitative measures (Iotal direct costs.
direct salaries and ....ages. stafr hours applied.
square feet used. hours of usage. number of
documents ~rocessed. population served, and
the like) and (ii] it is common to the
benefi ling [unctiuns during the base period.
d. Except where a special indirect cost
rate[s) is required in accordance with
paragraph 0.5. below. the separate groupings
of indirect costs allocated to each major
lunction sholl be agregated and treated as a
common pool for that function. The costs in
the common pool shall then be distributed to
indivisual awars inciuded In that function by
use of a single indirect cost rate.
e. The distribution base used in computing
\l,e indirect cost rate for each function mav
be lotal dirp.ct costs (excluding capilal .
c;penditures and olher distorting items such
US major subcontracts and subgrants). direct
~alaries and wages. or other ase which
results in an equitable distribution. The
distribution base shall generally exclude
participant support costs as defined in
paragraph 29. Al\achmenl B. An indirect cost
rate should be developed fir each shparale
indirect cost pool developed. The rate in each
case should be slated as the percentage
which the amount of the particular indirect
cost pool is of the distribution base identified
.1
A-122:3
with tM t ~
.(. Direct allocation method.
a. Some rnmprofit organizations. treat all
costs as direct costs expect general
administration and general elCpenses. These
organizations generally separate their costs
into thre basic categories: [i) General
administralion and general expenses. (ii)
fund raising. and (iii) other direct funclions
(including projects performed under Federal
nwards). Joint costs. such as depreciation.
renlnl costs. operation and maintenance of
fncilities. telephone expenses. end the like
arc prorated indivisually as direct cost 10
each category and to each nwnrd. or other
activity using a base most appropriate to the
parlicular cost being prorated.
b. This method is acceptable provided each
joint co.st is prorated using a base which
IIccurntely mellSllres the henr.fils prnvided to
ellch IIwllnl or IIlher IIcllvll\'. Thn \JI\~"" I1l1l11\
be established in accordan~e with resonable
criteria. and be supporled by current dala.
This method is compatible with the
Slandards of Accounting and Financial
Reporting for Voluntary Health and Welfare
Organizations issued jointly by the Nalional
Health Council. Inc.. the National Assembly
of Volunlarv Health and Social Welfare
Organizati~ns. and the United Way of
America.
c. Und'.lr this method, indirect costs consist
eclusively of general adminislmtion and
genera I expenses. In all other respects. the
organizalion's indirect cost ratess shal be
computed in the same manner as that
described in paragraph 0.2 above.
5: Special indirect cast rates. In some
instances. a single indirec:t cost ra le for all .
activities of an organization or for each major
funelion of the organization ay not be
appropriate. since it would not lake into
accounl those different factors which may
substantially affecl the indirect costs
applicable to a particular segment of work.
For this purpose. a particular segment of
.....ork. For this purpose. a particular segment
of wOlk may be that performed under a single
award or it mav consist of work under a
group of awards performed in a common
environment. the factor. may include the
physical location of the work. the levp.[ of
Rdministra tive support required, the na ture of
the facilities or order resources employed. the
scienli[ic disciplines or technical skills
involved. the organizational arrangements
used. or any combination thereof. VVhen a
parlicular segment of work is performed in an
environment which appears to generate a
significanlly different level of indirect costs,
provisions should be made for a separate
indirect cost pool applicable to such work.
The separole indirecl cost pool should be
developed during the course of the regular
allocation process. and the separate indirect
cost rate resulting therefrom should be used
provided it is determined that (i) the rate
differs significantly from thaI which would
have been obtained under paragraph 0.2. 3.
and 4 obove. and (ii) the volume of work to
which the rale would apply is malerial.
E. Negotiation alld Approval of Indirect Cost
Rates.
, ,
I
Office of Management and Budget Circular A-122 (6f27/80)
1. Definitions. As used in this seclion. the
followl~g terms have the meanings set forth
below:
a. "Cognizant agency" menns lhe Federal
agency responsible for negotiating and
approving indirec:t cost rales for a nonprofit
organization on behalf of all Federal
agcncir.s.
b. "Predetermined rote" means an indirecl
cost rate. applicable to a spec:ified current or
future period. usually the organization's fi~c8l
year. The rate Is based on an estimate of the
cosls to be incurred during the period. A
predetermined rale is not 8ubject to
adjustment.
c. "Fixed rate" means on indirect cost rate
which has the sume characteristics as a
predetermined rate. except that the difference
between the estimated costs and the actual
cosls of the period covered by lhe rule is
carried forward os an adjustment to the rale
compulation of a subsequent period.
d. "Final rale" means an indirect cosl rate
applicable to a specified post period which is
based on the actual costs of the period. A
final rate is not subject to adjustment.
e. "Provisional ra te" or billing ra Ie means a
temporary indirect cost rate applicable to a
specified period which is used for funding.
interim reimbursement. and reporting indirect
costs on awards pending the establishment of
a rata for the period.
r. "Indirect cost proposal" means the
documentation prepared by an organization
to substantiate its claim for the
reimbursement of indirect cosls. This
proposal provides the basis for the review
and negotiation leading to the establishment
of an organization's indirect cost rate.
g. "Cost objective" means a function.
organizational subdivision. contract. grant, or
o:her work unit [or which cost dala are
desired and for which provision is made to
accumulate and measure the cosl of
processes. projects. jobs and capitalized
projects.
2. Negotiotion and opprot'ol oJ rates.
a. Unless different arrangements arc
agreed to by the agencies concerned. the
Federall3gency with the largest dollar value
of awards with an organization will be
designate:! as the cognizant agency for the
negotiation and approval of indirect cost
rales and. where necessary. other rates such
as fringe benefit and compuler charge-out
rales. Once an agency is assigned cognizance
for a particular nonprofit organization, the
assignment will not be changed unless Ihere
is a major long-term shifl in the dollar volurlle
cf the Federal awards to the organization. All
concerned Federal agencies shall be given the
opportunity to participate in the negotiallon
process. but after a rate has been agreed
upon it will be accepted by all Federal
agencies. When a Federal agency has reason
to believe that special operating factors
e!iecting its awards necessitate special
ifldirecl cost rales in accordance with
~aragraph D.5 above, it will, prior to the time
tne rates are negotiated. notify the cognizant
agency.
b. A nonprofit organiza tion which has not
previously established an indirect cost rate
with a Federal agency shall after the
crganizalion is advised that an award will be
made and. in no event, laler than thrce
months after the cffective dale o[ the award.
c. Organizations that have previously
estabiished indirect cost rates must submit a
new indirect cost proposal to the cognizant
agency within six months after the dose of
each fiscal year.
d. A predetermined rate may be negotiated
for use on awards where there is reasonable
assurance. based on past experience and
reliable projection of the organization's cosls.
thaI the rate is nol likely to exceed a rale
ba~ed on the organization's Dctual costs.
e. Fixed rales may be negotiated where
predetermined rates are not considered
appropriate. A fixed rale. however. shall not
be negotiated if (i) 011 or a subslantial portion
of the organization's awards are expected to
expire before the carry-forward adjustment
can be made: (ii) the mix of Governmenl and
non-government work at the organization is
too erralic to permit an equitable carry.
forward adjustment: or (iii) the organization's
operations nuctuate significantly from year to
year.
f. Provisional and final rates shall be
negotiated .where neither predelermined nor
fixed rates are appropriale.
g. The results of ellch negoliation shall be
formalized in a written agreement between
the cognizant agency and the nonprofit
organiza tion. The cognizant agency sha1\
distribute copies of the agreement to all
concerned Federal agencies.
h. If a dispute arises in a negotiation of an
indirect cost rale between the cognizant
agency and the nonprofit organi:;:ation. the
dispute shall be resolved in accordance with
the appeals procedures of the cognizant
agency.
i. To the extent that problems ure
encountered among the Federal agencies in
connection with the negotiation and approval
process. the Office of Management and
Budget will lead assistance as required to
resolve snch problems in a timely manner.
[Circular No. A-1Z2]
Atlachment B
Selected lIems o[ Cost
Table of COlltents
1. Advertising costs
2. Bad debts
3. Bid anrl proposal costs (reserved)
4. Bonding costs
5. Communicalion costs
6. Compellsation [or personal services
7. Contingency provisions
O. Contributions
~. Deprl~ciatlon and use allowances
10. Donations
11. Employee morale, health and welfare
costs and credits
1::. Enter:ainrnent costs
1:1. Equipment and olher capital expenditures
H. Fines nnd penalties '
15. Flio!:;! benefits
11). Idle '[acilities and idle car-lId:y
17. Independent resenrch and development
(resen'ed)
18. Insurance and indemnificalion
19. Inlere~t. [und-raisin!;. andinvestrnenl
mllnngem!:nt costs
W. Lnbor relatiofls cMls
.1
A-122:4
21. LC'ss(>s on ollie. ll.....ard.
n. Mainlenance a:ld r<:pllir cosls
23. Materials /Vld supplie.
24. Mcetin~s. conferenccs
z.;. MemLerships. subsGriptions. alld
pre[essional aCli,'ily custs
20. Organizalion costs
'D. O,'erlime, extra'pay shif\. nnd multishifl
premiums
20. Page chnrges in pro[essi:mul journllls
29. Participant supporl costs
:la. !'alenl cosls
31. Pension pluns
32. Plant seGurity costs
. '33. Prell ward cosls
34. Profession/ll service cosls
36. Profils and 105ses on dispo~ition of
depreciaule property or other capilnl
IIssels
3f). Public ir'iformlltion serdce costs
3i. Publication llnd pJinling co.sts
:iO. Rearrangement and nllcrnlion costs
39. RecoO\'ersion costs
40. Recruiting costs
41. Relocation costs
42. Rental costs
43. Royalties und other costs [or lrt;c of
palents and copyrighls
44. Severance pay
45. Specialized service facilities
'Ill. Taxes
'Ii. Termir.ation cosls
40. TrainiJlf: and education costs
49. Transportation costs
50. Travel costs
[Circular No. A-l2.2}
AIlDchment B
Selected Items of Cost
Paragraphs 1 through 50 provide principles
to be applied in eslablishing the allowubility
o[ cerlnin ilems o[ cost. These principles
apply whether a cost is treated as direct or
indirect. Failure to mention a particular item
of cost is not intended to imply thaI il is
unallnwable: rather determination os to
allowabilitv in each case should be based on
the trea In\~nt or principles provided for
similar or rela ted items nf cost.
1. Advertising COots. .. ...
8. Ad',ertising costs mean the costs of. -
media services and associated costs. Media
advertising includes magazines. newspapJrs.
radio and television programs. direct maiL
exhibits. and the like.
b. The only advertising costs allowable are
those which are solei)' lor [i) the recruitment
of personnel when considered in conjunction
",Ilh all other recruitment costs, as set [ortb
in paragraph 40:.[ii) the procurement of goods
and services: (iii] the disp08al o[ SUrplU5
mOllerials acquired in the performance o[ the
"wnrd except when organizations are
reimbursed [or disposals at a predetermined
omount in accordance with Attachment N of
OMt] Circular A-llO: or (iv) specific
.requirements of the award.
2.. Bod doblS. Bad"{!ebts. including looses
( whether aClual or estimated) arising from
uncollectible accounts and other claims.
relaled collection costs. and rclalllo leglll
costs. are un8110wRble.
3. Did and proposal casts. [reserved)
4, flvnding costs.
" ;
.,",\
I '
Office of Management and Budget Circular A-122 (6/27/80)
a. Bonding co~ts arise when the
Government reGuire~,assurance agllinst
finuncialloss to it.sell or others r.y reason of
the ar.t or default of the ol'gllnization. They
..rise also In instllnce, where the organiution
",quires similar assuranoe. Included are such
bonos as bid. performance. payment.
InlnlOr.e payment. InfringemenL and fidelity
bunds.
b. Custs of bonding required pursuant 10
the tern's of the award art' allowl\hle.
c. Costs of bonding required br the
org.1ni7.i1tion in the gener/ll conduct of il.
uperat:ons arc allowahle to Ihe elLtcntthat
sLlch bonding Is in accordance with sound
business practice IInd the rates and premiums
lire reasonllble under the circumstance8.
5. Communication DOlltS. Costs incurred for
h,lerhone serviceR. local and long distance
telephone colis. telegrams, radio!lralm.
postage Rnd the lI\:e, are allowable.
6. Compensation far personal sen-ices.
a. Definition. Compensation {or pel'1lonal
services includes ,Ill compensation paid
currently or accrued by the orgar:il:ation Cor
services of employees rer.dered during the
period of the award (exccpt os oilierwise
provided in paragraph g. below). II includes.
but is not limited to, aalaries. wnges,
director's and executive committee member's
fees, incentive awards, fringe benefits.
pension plan costs. allowances for oIT-site
pny, incentive pay. location allowances,
hcrdship pay. and cost of li\'ing difierentials.
b. Allowability. Except as otherwiBe
s;>ecifically provided in this paragraph the
costs of such compensation are allowable to
the extent that:
(1) Total compensation to,individual
employees is reasonable for the services
rendered end conIonns \0 the established
policy of the organization consistently
applied to both Government and llon-
Government activities: and
(Z) Charges to awards whether treated as
direct or indirect costs are dete.mined and'
supported a\; required in this paragraph.
c. RcasanablCJlcss.
(lJ Wben the organization is predominantly
engaged in activities other than those
sponsored by the Government. compensation
Cor employees on Govarnmonl-sponsored
work will be considered reasonllble 10 the
exlent that il is consistent with thai paid for
similar work in the organization's oilier
activities.
(Z) When the organizalion is Jlredominllntly
engaged in Government-sponsored activities
and in cases where the kind of employees
required for the Government acth-ities,are
not fOW1d in the organization's other
activities, compensation for employees on
Go,oernment-sponsored work will be
considered reasonable.to the extenlthal it is
comparable to that paid for similar work in
the labor markets in which the organiz.ation
competes for the kind of employees involved.
d. Special considerations in determining
olJowobility. Cerlain conditions require
special consideration and possible limitotions
in determining costs under Federal awards
where amounlsor types of compensation
appear unreasonable. ^mong such conditions
are the following:
11J Compensution to members of nonprofit
oq:aniz<:tions. trustees. dirertors. R~sor.iates,
officers. or the immediate flllllilie8 thereof.
DrterminAlion should he made Ihnt sur.h
compemation is reQsonnble for the actunl
personal scrvir.es rendered ruther than a
distribution of earnings in excess of cos~.
(Z) ^ny change in Rn o~nllization's
compensation policy resulling in a
substantial increase in the organi:tation's
level of compensation. particularly when it
was concurrent with an incrense in the rlltio
oC Government awards to other activities of
the organization or any chnnge in the
trentmenl of allowaoilit)' of specific types of
compensatiun due to changes in Government
policy,
e. Unallowable casts. Costs which Rre
unnllowable under other paragraphs of this
^lIachment shall not be allowable under this
pnragruph soleI)' on !lIe basis that they
constitute penonal compensation.
f. Fringe benefits.
(1) Fringe benefits in the fonn of regular
compensalion paid 10 employees during.
periods oC autho.ized absences from the Job.
such as vacation leave. sick le8ve, military
leave. aud the like. arc allowable provided
sur.h costs are absorbed b)' all organization
activities in proportion to the relative amount
of time or effort actually devoted to each.
(Z) Fringe benefils in tbe form of employer
contributions or expenses ror social security.
emploj'ee insurance, workmen's
compensation insurance, pension plan costs
(see paragraph g. below), and the like. are
allowable provided such benefils 8.e granted
in accordance witb established wrillen
organization policies. Sucb benefits whether
trea ted liS indirect costs or liS direct costs.
shall be distributed to particular awards and
other activities in a manner 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 ac!ivities.
(3)(0) Provisions for a reserve under a self-
InSurance program for W1employment
compensation or workmen's compensation
ere allowable to the extent lhat the
provisions represent reasonable estimates of
the Iiabilitiec for such compens8tion, IInd tho
types of coverage. extent of coverage. and
roles and premiums would have been
allowable had insurance been purchased to
cover the risks. Howevar. provisions for self-
insured liabilities wbich do not become
payable for more than one year after the
provision is made shall nol ex.ceed the
present value of the liability.
(b) Where an orljanizalion follows II
consistent polcy of expensing aclual
payments to. ar.on behalf at employees or
former employees for W1employment
:Compensation or workmen's compansation,
such.payments are allowable in the year of
"payment with the prior approval of the
swarding agency provided they are allocated
to,all activities of the organiza lion.
(4) Costs of insurance on the lives of
trusl['es, officers. or other employees holding
positions of similar responsibility are
allowable onl\' to the ex lent that the
insurnnce rep~esenls additional
compensiltion. The costs of such insurance
.....hen the organization is named as,
-I
A-122:5
beneficiary are unallowable.
g. Pension pIon costs.
(1) Costs of the organization's pension plan
which are incurred in accordance with the
established policies of the organization are
allowable, provided:
(a) Such pulicies meet the test of
reasonableness:
(bJ The methods of cost allocation are nol
discriminatory; .
(c) The cost assigned to each fiscal year is
determined in accordance with generally
accepted accounting principles as prescribed
in ^ccounting Principles Doard Opinion No.6
issued by the ^mericnn Institute of Certified
Public ^ccountants: and
(d) The cosls assigned to a given fiscal yenr
ere funded for all plan participants within six
months ailer the end of that year. However.
increases to normal and past service pension
cosls cllused by a delay in funding the
actunrialliability beyond 30 days after each
quarter or the year to which such costs are
assignllble are unallowable.
(Z) Pension plan termination insurance
premiums paid pursuanlto the Employee
Relirement Income Security Act of 1974 (Pub.
L. 93--400) arc allowable. Late payment
chRrges on 8uch premiums are unallow~ble.
(3J Excise taxes on accumulated fundlOg
deficiencies and other penalties imposed
under the Employee Retirement income
Security ^ct are unallowable.
h. Incentive compensation. Incentive
compensation to employees based on cost
reduction, or efficient perfonnance,
suggestion awards, safety swards, etc.. are
allowable to the extent that the overall
compensation is determined to be reasonable
and such costs are paid or accrued pursuant
to an agreement entered inlo in good faith
between the organization and the employees
before the services were rendered, or
pursuant to an eslablished plan folluv.:ed by
the organization so.consistently as to Imply,
in effect. an agreement to make such
paymen\. .' .
i. Overtime, extra pay shift. and mullishift
premiums. See paragraph Z7.
j. Severance pay. See paragraph 44.
k Training ond education DOStS. See
. "\
paragraph 'lB... .'
\. Support of salaries and wages. -
(1) Charges to awards for salaries, and
wages, whether treated as direct costs or
indirect costs, will be bosed on documented
payrolls approved by a responsible officialls)
of the organization. The distribution of
solaries and wages to awards must be
supported by personnel activity reports as
prescribed in subpsragraph (2) below. except
when a 8ubstitute svstem has been approved
in "'Tiling by the th~ cognizant agency. (See
poragrsph E.2 of Allachment A)
(2) Reports renecting the distribution of
activity of each employee must be
maintained for all slaff members
(professionals and nonprofessionals) whose
compensation is chargee!. in whole or in part,
directly to awards. In addition, in order to
support the allocation of indirect cosls, such
reports must al80 be mainlained for other
employees whose work involves two or more
funcitons or activities if a distribution of their
compensotion between such functions or
nc:tivilies is needed in the determination of
I
.. .
, '
.1
Office of Management and Budget Circular A-122 (6/27/80)
the organi7:alion's imlirect cost TRle(s) (e.g..
an Employee engaged part, time in indirect
cost activities and parl-lime in a direct
function). Reports maintained by nonprofit
organi7:ations to satisfy these requirements
must meet the following standards:
(a) The reports must renect an afler-the-
fact determination of the actual activily of
each employee. Dudget estimates (i.e..
estimates determined before the services sre
performed) do not qualify as support for
charges to aVlords.
(b) Euch report must account for the totol
activity for which employees are
cornpcllsated and which is required in
fulfillment of their obligations to the
organizo tion.
(c) The reports must be signed by the
individual employee, or by a responsible
supervisory official having first hand
knowledge of the activities performed by the
employee. thotthe distribution of octivity
represents a reasonllble estimate of the
actual work perfo:mad by the employee
during the periods covered by the reports.
(d) The reports must be prepared at least
monthly and must coincide with one or more
pay periods.
(3) Charges for the salaries and wages of
nonprofessional employees. in addition to the
'supporting documentation described in
subparagraphs (1) and (2) above. must also
be supported by records indica ting the total
number of hours worked each day
maintaioed in conformonce with Department
of Labor regulations implementing the Fair
Labor Standards Act (29 CFR Part 516). For
this purpose. L,e term "nonprofessional
employee" shall have the same meaning as
"nonexempt emplo~'ee:' under the Fair Labor
Standards Act.
(4) Salaries and wages oj employees used
in_meeting cost aharing or matching
requirements on awards musl be supported in
the same manner as salaries and wages
claimed for reimbursement from awarding
agencies.
i. Contingency provisions. Contributions 10
a conlingency reserve or any similar
provision made for events the occurrence of
,,:hich cannot be ioretold with certainlv as to
time. inlensity. or with an assurance or their
happening. are unallowable. The term
"contingency reserve" excludes self-
insurance reserves (Eee paragraph 6.f.(3) and
lfl.a.(2)(d)): pension funds (see paragraph
6.(g)): and reserves for normal severance pay
(see paragraph 44.(b)(1).
6. Contributions. Contributions and
donations by the organiz.ation to others are
l1oallowable.
9. Depreciaiion and use allowances.
a. Compensation for the use of buildings.
other capital improvemenls, Bnd ~quipment
Gr: bane may he made through use
?lio"':an~es or depreciation. However. except
as prr1vided in paragraph r. below a
comuiOlation of the two methods m(lV not ~
"sed in clmnection with a single class of
fjxed as.els [e.g.. b~.ildings. office equipment.
computer equipr.lent. etc.).
b. The competa lion of use allov,:ances or
';',pr ciation shall be based on the
H.,!l! si:ion cost of the assets involved. Th~
aCOl: sition cosl of an asset clJr:aled to the
organization by a third part~' shall be Its fair
market value at the lime of the donation.
c. The computation of use allowor.ces or
deprecia tion will exclude.
(l) The cost of land:
(2) Any portion of the cost of bui:dings and
equipment borne by or donated by Ihe
Federal Government irrespective of where
title was ori!:inally vested or where il
presently resides: and
(3) Any portion of the cost of buildings and
equipment CO!Jtrilluted by or for the
or!-:ani7:aliun in satisfaclion of a statutory
malching retirement.
d. Where the use allowance method is
followed. the use ollowance for buildings and
improvement (including land improvements
such as ptlved r'Brking areas. fences. and
sidewalks) will be computed at an annual
rale not exceecing two percent of ocquisition
cost. The use allowance for equipment will
be compuled at an annual rate not exceedir.g
six and two-thirds percent of acquisition cost.
\Vhen the use allowance method is used for
buildings. the entire building must be trealed
os a single asset; the building's components
(e.g. plumbing system. heating and air
conditioning. elc.) csnnot be segregated from
the building's shell. The two percent
limitation. however. need not be applied \0
equipmenl which is merely a:tached or
fastened to the huilding but not pc-rmanently
fixed to it and which is used as furnishings or
decorations or lor speciali7:ed parposes (e.g..
dentist chairs and dentaltreatrnent units.
counters. laboratory benches holteuto tha
fluor. dishwashers: carpeting. elc.). Such
equipment will be considered as not being
permanently fixed to the building if it can be
removed without the need for costly or
extensive altera tions or repairs 10 the
building or the equipment. Equipment that
meets these criteria will be subject to the six
and two-thirds percent equipment use
allowance limitation.
e. Where depreciation method is followed.
the period of useful service (useful life)
established in each case for usable capital
essets must take bto considera tion such
factors as type of construction. nature of the
equipment used. technological developments
in the particular program area. and the
renewal and replacement policies followed
for the the individual items or classes of
assets involved. The method of depreciation
used to assign the cost of an IISset (or group
of assets) to accounting periods shall renect
the pallern of consumption of the asset
during its useful life. In the absence of clear
evidence indicating that the expected
consumption of lhe asset will be significantly
greater or lesser in the early portions of its
u~cfullife than in the later portions. the
straight-line method shall be presumed to be
the appropriale method. Depreciation
mclhods once used shall not be changed
unless Hpproved in advance by the cognizant
Fcceral agency. When the delJreci;;tion
method is introduced for application to assets
previously subject to a use allowance. the
combination of use Bll-owances and
ncprecint.on applicable 10 such assets must
nol exceed the lotal acquisition cost of the
:1ssets. V,'llen the depreciatIOn method is useu
fm huildings. a bujldin~'s snell n:ay ue
A-122:6
sq:rcga\cd from each huilding component
(e.g.. plumbing system. healing. and air
conditioning syslem. etc.) and each item
depreciated over its estima'ed usefulli[e: or
the entire building (i.e.. the shell and all
components) may be treated as a sir.gle asset
and depreciated over a single usefulli[e.
r. When the depreciation method is used
for B particular class of assets. no
depreciation may be allowed on Bny Buch
as~ets lhat. under purHgraph e. above. would
be viewed as fully depreciated. However, B
reasonllule use allowance mllY be negotioted
for such assets if worranted after taking into
consideration the omounl of deprecialion
previously charged to the Government. the
estimated useful life remaining at time of
negotiation. the effect of any increased
maintenaoce charges or decreased efficiency
due to age. ond any other [actors pertinent to
..the utili7:a tion o[ the osset for the purpose
contcmplated.
g. Charges for use allowances or
depreciation musl be supported by adequate
property records and physical inventories
must be taken at least once every two years
(a slaliltical sampling basis is acceptable) to
ensure that assets exist and are usable and
nee(lt:u. When the depreciation method is
followrd. adequate delJrecia tion records
indicating the amount of depreciation taken
cach period must also be maintained.
10. Donations
a. Services received.
(1) Donated or volunteer services may be
furnished to an organization by pro[essional
and technical personnel. consultants. and
other skilled and unskilled labor. The value
of these services is not reimbursable either as
o direct or indirect (;osl.
(2) The value of donated services utilized
in the performance of a direct cosl activity
shall be c(lnsidered in the determination of
the organi7:ation's indire'ct cost ratels) and.
Hccordingly. shall be allocated a
J'roporlion~te share of applicable indirect
coslS when the [ollowing circumstances exist:
la) The ags~egate value of the services is
nlaterial:
[ll) The services are supported bhq
significant amot!nt of lloe i~lirect costs. . .
incurred by the organi7:H lion:
(c) The dir~ct cost activity is notlJursu'cd
primarily for the benefit o[ the Federal
Gov(:~nmcn\.
(3) In those ills lances where there is no
b;lsis [or delermining the fair market value of
the services rendCTerl. the recipient and the
cognizant agency shall negotiate an
appropriale aiiocution o[ inuirect coslto the
sl:r..:ces.
(4) Where dona led services directly benefit
a ;:roject supported by an a ....ard. the indirect
costs allocated to lhe services "ill be
comidered as a part of the total cosls of the
projecl. Such indirect costs may be
reimbursed under the award or used to meet
cost sharing or matching requirements.
(5) The value of tl1e donated services may
IH' used to mect cost sharing or matching
r"quiremenls under conditions described in
I'.ltachment E. OMB Circular 0'0. A-l10.
\\'here dona led services ure trented as
inc\irect cosls. indirect cosl rales will
sl:parale the value of lhe donations so thaI
,I 4
I .
'\
I
Office of Management and Budget Circular A-122 (6/27/80)
reimbursement will not be made.
(6) Fair market value: of donated services
shall be computed as follows:
(a) llates far volunteer sen'ices. Rales for
volunte~rs shall be consistent with those
regular rates paid for similar work in other
activities of the organization. In cases where
the kinds of skills involved are not found in
the other activities of the organizB tion. the
rates used shall be consistent with those paid
for similar work in the labor market in which
the organiza lion competes for such skills.
(b) Sen'ices donated by other
organizations. When an employer donates
the services of an employee. these services
shall be valued at the employee's regular rate
of pay (exclusive of fringe benefits and
indirect costs) provided the services are in
the same skill for which the employee is
normally paid, If the services are not in the
same skill for which the employee is normally
paid. fair market value shall be computed in
accordance with subparagraph (a) auove.
b. Goods and space.
(1) Donated goods; i.e.. expendable
personal property / supplies. and dona led use
of space milY be furnished to an organization.
The value of the goods and space is not
reimuursable 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 Allachment E. OMB Circular No. A-ll0.
The value of the donations shall be
determined 10 accordance with Allachment
E. Where donations are treated as indirect
costs. indirecl cost rates will separate th~
value of the donations so that reimbursement
will not be made.
11. Employee morale. health. and welfare.
costs and credits. The costs of house
publications. health or first-aid clinics. and!
or infirmaries, recreational activities.
employees' counseling services. and other
expenses incurred in accordance with the
organization's established practice or custom
for the impro\'ement of working conditions.
employer-employee relations. employee
morale. and employee performance are
allo\\'nble. Such costs will be equitably
apportioned to all activities of the
organization. Income generatcd from any of
thcse activities will be credited to the cost
. thereof unless such income has been
irre\'ocably set over to employe~ weHare
orga niza t ions.
12. Entertainment costs. Costs of
amusemenl. diversion. social activities.
ceremonials, and costs relating thereto. sucl.
as meais'. lodging. rentals. transportation. and
gratuities are unallowable (but see
p;:rngr?phs 11 and 25).
13. Equipment and other capiJol
e.\pendit ures.
a. As used in this parngraph. the following
lcnr..;l.havethe.m!l~ninm; l!~.U9rth below:
(1) "Equipment" means an article of
nonexpendable tangible personal property
ha\'m8 a useful life of more than two vears
and an acquisition cost of $500 or moie per
unit. An organization may use its own
dc!inition provided thai i't alleast includes all
no~expendable tangible personal property tiS
defined herein.
(2) "Acqui!ition cost'. means the net
invoice unit price of an item of equipment,
including the cost of any modifications.
attachments. accessories. or auxilitlry
apparatus necessary to make it usable for the
purpose for which it is acquired. Ancillary
charges. such as taxes. duty, protective in-
transit insurance. freight. and installation
shall be Included in or excluded from
acquisition cost in accordance with the
organization's regular wrillen Bccounting
practiceR.
(3) "Special purpose cquiplolenl" mcans
equipment which is usable only for research,
medical. scientific. or technical Bctivities.
Examples of special purpose equipment
Include micr05copes. x-ray machines. surgical
instruments. and spectrometers.
(4) "General purpose equipment" means
equipment which is usable lor other Ihan
research, medical. scientific. or technical
activities. whether or not special
modifications are needed to make them
suitable for a particular purpose. Examples o[
general purpose equipment include office
equipment Bnd furnishings. air conditioning
equipment. reproduction and printing
equipmenl. motor vehicles. and automatic
data processing equipment.
b. (1) Capital expenditures [or general
purpose equipment Bre unallowable as a
direct c09t except with the prior approval of
the awarding agency.
(2) Capital expenditures for special purpose
equipment are allowable as direct costs
provided that items with a unit cost of $1000
or more have the prior approval of the
awarding agency.
c. Capital expenditur.es for land or
buildings are unallowable as a direct cost
except with the prior approval of the
awarding agency.
d. Capital expenditures for improvements
to land. bcildings. or equipment w.hich
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 capital
expenditures are unallowable as indirect
costs. Howcver. see paragraph 9 for
allowability of use allowances or
depreciation on buildings. capital
improvements. and equipment. Also. see
paragra~h 42 for allowability of rental costs
for land. buildings. and equipment.
H. Fines and penalties. Costs of fines and
penalties resulting from violations of. or
failure of the organization \0 comply with
Federal. State. and local laws and ret:ulations
are unallowobie except when incurred as a
result of compliance with specific provisions
of an award or instructions in writing [rom
the awarding agency. .
15. Fringe benefits. See paragraph 6. f.
16. Idle facilities and idle capacity.
a. As used in this paragraph the following
terms have the meanings set forth below:
(1) "Facilities" means land and buildings or
any portion thereof. equipment individuallv
or collectively. or any other tangible capita-l
.ssel. wherever located. and whether ov..'Tled
or l,~ascd by the organiza tion.
(:!) "Idle facilities" means complete!\'
unllSJ:d facilities tha: are e"Xcess \0 the'
or~ani2.ation's current needs.
I:J) "Idle C3pacit:," means the unllCoed
.I
A-122 :7
capacity of partially used facilities. It is (be
differcnce betweeD that which 8 facility
could achieve under 100 per cent opera ting
time on a one-shill basis less operating
interruptions resulting from time lost for
repairs. setups. unsatisfactory materials. ano
other normal delays. and the extent 10 which
the facility was actoally u,ed to meet
demands during the accountinl! period. A
mullishifl basis may be used if it can be
shown that this amouo1 of usage could
normally be expected for the type of facility
involved.
(4) "Costs of idle [acililies or idle capacity"
means COstR such IUl maintenance. repair.
housing. rcnL and other related cosl1l; e.g..
property taxes. insurance. and depreciCllion
or use allowances.
b. The costs of idle facilibies are
unallo\~able except to the ex lent lh~t:
(1) They are unnecessary to mecl
fiuctuations in workload: or
(2) Although not necessary to meet
nuctuations in workload, they were
necessary when acquired and are now idle
because of changes in program requirements.
efforts to achieve more economical
operations. reorgani:wtion. termination. or
other causes which could not have becn
reasonably foreseen. L:nder the exception
sta ted in this subparagraph. costs of idle
facilities are allowable for a reasonable
!,eriod of time, ordinarily not to exC'~ed one
year. depending upon the inilia live taken to
use. lease. or dispose of such facilities (but
see paragrnphs 47.b. and d.).
c. The costs of idle capacity are normal
costs of doing business and are a factor in the
normal nuctuations of usage or indirect cost
ra tes from period to period. Such costs are
allowilble. provided the capacity is
reasonably anticipated to be necessary or
was originally reBsonabie and is scbject to
reduct:on or elimination by subletting.
rcnting. or sale. in accordance with sound
business. economics. or security practiccs.
Widespread idle capacity throughout an
enHre facility or among a group of assets
having substantially the same ft:nr.tion may
be idle facilities. .
17. hd9~ndcnt rescC1(Ch aild dav"lopmenl
l Reser,,~d l. -
lB. lnsurance and indemnification. \
a. Insurance includes insu~ance which the
organization is required to carry. or which is
approved. under the terms of the .:ward and
any other insurance which the organiza tion
maintains in connection with the general
condcct of its operations. ThiD paragraph
does not apply to insurance which represents
fringe benefits for emrloyees (!;ce paragraph
6.f. and 6.g.i2)).
(1] Costs of in:;:lrance r~quired or
ar-proved. and maintained, purSuilntto the
award are allowable.
I:!) Costs of other insllTance milintained bv
the orgimization in connect inn with the .
general conduct of its operations are
ulluwablc subject to the followin~ limitations.
(a) Types and extent of coverage shall be
in eccodilnce with sound business practice
and the r~tes and premiums shall be
reasonobie uncer the circumstances.
(bl Cr,st3 allowed for business interruption
or olh~r similar insurance sl-.illl be limited to
4' .
, y
I
Office of Management and Budget Circular A-122 (6/27/80)
exclude coverage of managern~nt fee~,
(e) Costs of insurance or of any pr(),,;~icn~
fnr a reserve covering the risk of luss or
d"moge to Government property are
ullowable only In the ex lent thai the
orllqniza:ion i6 linble for such los~ or daOlaC!':.
(d) Provi~ions for a reserve under a ~elf-
iIlS:Jrar,,;e prcgram are allowable to the
exlent thattr;leR of coverage. cxl~nt of
coverage. rilte~. ahd premiums woult! hHve
been allClwcd had ir'.su~;\ncc been purchased
10 cllv.:r Ihe ri~ks. However. provisi::Jn fur
I-nnwn or reasonablv eslimll'ed self,i:1~ured
lillbilities. which do -noi become payabie for
more than one year after the [lrovisior. i~
made shalll,ot exceed the present value of
Ihe liability.
leI Costs of insurance on the Ii"vcs of
trustees. officers, or other e:npJoyee~ holding
positions of similar responsibilities arc
r.Jlo'.~able only to the extrnt L>:1!tthe
i:1surance represents additional
compensation (see pnragrRph 6). The CIlSt of
such inRurance when the organization is
identified as the beneficiary is unallow..ble.
(3) Actual losses which could ha\'e been
covered by permir.nible insurance (thro:Jt:h
lhe purchase of insurilr,::c or a selr.insurance
program) ore unallowable unless expressly
provided for in the awarrl. except:
(a) Cosis incurred because of losses not
covered under nomin:!1 deductible insurance
coverage provided in kPeping with sound
business practice are allowable.
(b) Minor losses not covered by insurance.
suc.h as spoilage. breakeg~, and
c:sappearance or supplies. which occur in the
ordinary course of op~rations. are allowable.
b. Indemnifica tion includes securing the
organization against liabilities to third
persons and an~' other loss or damag~. nol
compensated by insurance or othen,'ise. The
Government is obligateclto indemnify the
organization only to 'he exlent expressly
provided in the award.
19. Interest, fund raising, and i1l1'estment
r:lO;;:Jgcment costs.
a. Costs incurred for interest on borrowed
capital or lempOnlf)' use of encowment
funds. however represented, afe unallowable.
b. Costs of organized fund raising.
including financial campaigns. endowment
drives. solicitation of gifts and bequests. and
similar expenses incurred ;;olely to raise
capital or obtain contributions are
unallowable.
c. Costs of investment counsel and staff
end similar expenses incurred snlelv to
enhance income from lnvest:oents ;re
unallowa ble.
d. Fund raising and investment activities
5hall be allocated all appropriate ~hafe er
indirect costs under the conditions rlescribed
in paraf:raph B of Att"chment A.
20. Labar relations costs. CO$ts inC1:rrcd in
mainta:ning sillisfiJctcry re:ations bet.....een
:he organization and its employees. including
costs of labor managemeol committees.
employee publications. and other related
activities arc allowable.
21. Lasses an other awards. Anv excess of
cosls over income on any award j-s
u:1aJlowable as s cost of any other awaro.
ihis includes, but is not limited to, the
c~f?nizBtion's contributed portion by reMon
of r.ost sharinR lt~reemenl3 or any
underrecoveries Ihrough nepotiation of lump
sums far. or ceilings ()n. indlr,:ct co~ts.
Z2. Main!encnce and repair cas/so C()5ts
incurred for nec~Rsary mainleOllnCe. rrpair.
or upkc~p of buildings ,\Od equi;>menl
[incl,.diog Go\'!:!mment pr()perty unless
o:herwi~e provided for) which neither add to
t~e !Jermanenl \'alue of the property nor
appreciably prclong i1~ intended life. !Jut
ke~p it in on eff;cient operHting condition. are
lllln'"ahle. Cll~ts incurred lor ir"'I'm\'rmcnts
whic.h Add 10 the permanent value of the
builLings and equipment or apprer.ia!Jly
prolong their intended life shall be trealed as
Cil;:ilal exp..ndil:Jres (Ree par:lgmph 13J.
23. Muterin!.< and S1Jpphe.5. The cosls or
materials and sl:pplie~ necessary 10 cilrry out
nn award are a!:nw!lble. Such r.OStR should be
charged at their actual prices after deducling
nIl cash di~counls. trllde disr;ounts. rebates,
and allowances received !Jy the oq;aniz;Jtion.
Wilhd:awals from genel al slores or
stockrooms should be charged at cost under
on:,' recognized method of pricing
consislently applied. Incoming transportation
charges may be a !Jroper parI of m:!lerial
COS:. Materiflls and supplies charged' as a
direct cost should include only the materials
flnd supplies actuall~' used for the
performance of the contract or grant. and due
credit should be given lor ony excess
malerials or supplies retained. or returned to
vendors.
24. Meetings. conferences.
a. Costs associated with the conduct of
meelings. and conferences. and include Ihe
Cllst of renting facilities. m~als. speakers'
fees. and the like. But see paragraph 12.
Enterta:nment casts. and paragraph 29,
Participant suppert costs.
b. To the extent that these costs are
identifiable \,,:1th a particular cost objective.
they should be charged to that objective. (See
paragraph B. of Attachment A.) These costs
are ailowabie provided that they meellhe
gener:Jltests of aliowabie. shown in
Attachment A to this Circular.
C. Costs of meetings and conferences held
to conduct the general? dministra lion of the
or!?anization are allowable.
25, Memberships. subscrIptions. and
professional activit.!' casts.
a. Costs of the org:lI1ization's membership
in civic. businp.ss, technical and profp.ssional
or~anizations are allowable.
b. Costs of the organization's subscriptions
tCl civic. business. professional. and technical
periodicals are allowable.
c. COSIS cf a\lendancp. ilt meetin"s and
conlerences. ~ponsored by othp.rs ~'hen the
primary purpose is the l);sscmina tion of
tecr:l1icnl informa:ion. arc allowable. This
indlJJ~s costs of mesls. tra'lsportativn. and
other items incidental to sur;h allend;mce.
26. Organization costs. Ex:,endjlure~. such
<.IS incorporation fees. brokrrs' f(?~s. fees 10
promoters. organizers or managcoTIen:
con5ullanls. a:torncvs. accounl<!nts ror
inve~tm~nt couns~l~rs. whNher or ~ot
~n~IJlo~'ees of the organiza tion. in connection
wilh e~lilblishmcnt or reorganiz;ation of an
orpnni:lIllion. arc unnllowable except with
prior apprvval of the awarding agency.
2i. O,'rrlilnc. extra-pay sf,ift. and
_I
A-122:8
mU/:lsh;''t /"( c"IUnlS. Prrmiu1l15 for o\ertin1l'..
('xllil.pay shifts. lII11i fnullishift work arc
/ILu\\'~\'1c Ilniy wi:h the prior "I'pro,,,l of :1:r
u \\'i1~u~ng (tgency e>..ccpl:
il. \\'hell n.:ce"5MY to cope with
cr.IC"l;enl:ies. such ;:~ lhosc resulling fruOl
~",:;,j,,:.:". nD1LJ'illlli~as\l'rs. breal<down5 of
r(p~jpp,'~rll. or l'(;C:1~i0n~1 opcrilti(loal
k,ltle-nee\.:5 01 a sporudic nalure.
b Whell !:::1pio.l'c'~s arc perlumliog indin:c\
hmc~il')lIR ~a:ch us itdministratiol1.
n;airl!rnancr.. or nc.{;(Jun~ing.
c. In ,he f'"dOrll\lIiICe of tcsl~. j"bnratory
f'flH"l:Jur.:s. oJr ulher simi;"r opcr:Jlions .....hich
lIn~ (;11:,r;i1UOllS in ;l.1'UrC and cannot
reasr;rlr.~i:.. !Je illtermpled or olherwis'!
CUI1l~I:~'.!~'u.
d. When 10\'\ll'r Clverull cosl tu the
(;o';("r".il\ccl \\"ill resull.
20. Pcgr c:hurgc; in professional journals.
P;Ir,C c:J.;Irges for professional juurnal
publications lire allowable as a necer-sary
part of research ~os:s. where:
". The rescuch papers report work
slJl'pnrl.:J l,y the Go\'crnment; and
b. The c\;arRcs lire levied imparliully on .t11
n:sl:ard, r;Jpers publi5hed by the journat
wheth'~r or noi by Governmenl,sponsorrd
ilulhnrs.
29. f'orfidpo!lt Sllpport c[ls/s. Par:icipllnt
supporl costs arc direct costs for items such
liS stipend:; or subsislence allowances. truvel
nllowaor.es. "nd regislration fees paid 10 or
un nehall of participants or trainees (but not
emplo.\'ees) in connection with meetings.
mnlerences. sympc,sia. or training projects.
Th.:se cosls are allowable with the prior
Hpprov<:1 of the awarding agency.
30. rute/;t casts.
a, Cc.sts of (i) p,eparing disr.lllSllres.
reports. and other documents required by the
n ,,'r,rd .1II0 of searching the art to the extend
necessary 10 make such disclosures. (ii)
prcpnring documents and any olher patent
costs in connectioo with the filing and
pr05ccut;oc of a United states pr,lent
npp!icnli-:>n where tille or royally.free license
is reqnircd by Ihe Governmpnt to be
cO:lVcycd io the Government. .;nd (iii) general
c;ouns.:li;;g services relating 10 pateh~and
copyright Olllllers. sur;h as qDvice nn p;JtenJ
and copyri~ht laws. ~egulations. clauses. and
employee agrc-cments arc allowable (bllt see
pllr~grllph 34).
b Cost of preparing discloslJres. reports.
and other documenls and of sp.arching the art
10 the exlent nrcessary 10 make disclosurrs.
if not required by the aW/lrd, ;ore
unallowable. Costs in connection with (i)
filing and prosecuting uoy loreign patent
application. or (ii) any Uniled Slales pillent
;Jpplica\ion. wJ.erc tbe Hward docs not
refl',irc cno\'eying title or a royally.free
l,<ynse 10 the Go\'ernment. are unnllowah\c
la\so ~ee parllgraph 43).
31. Pension plol!s. See paragraph 6. g.
32. Plant secer:ty costs. Necessary
el.penscs incurred to comply with
Govcrr.mcnl security mquiremenl6 or fur
facililics p,oteclion. including wages.
unilol m8. aod equipment of personnel are
1I11owiJble.
33. Preol1'ord casts. Preaward Cosls are
tho5c incorred prior to the effective dole of
t}lt, award directly purstlant to the
. ~ .
. .
I
Office of Management and Budget Circular A-122 (6/27/80)
nero\ilJtion and in ilnticipatinn of the "ward
wh"'l' suc.h costs is necessary 10 comrly with
:he proposed delivery schedule or period or
I'crlorm~lnce. Such costs Are allowable only
to ;hc e:denl that they woold hnve been
llilowable if incurren ofler the dntr. of the
~wlJrillll~d only with the wrillen approv"l r.f
the .:Jwarding ngcnr.)'.
34, }Jrn[cssional sen'icc cosls.
1\. Costs or prore~sionnl illld consultnnl
services rendereJ hy persons who are
r.,.'",bers of II particular proression or possess
a sllr.dal skill. flnd who arc not officers or
e~i,iuyees or the org"niznlion. arc a!!owoble.
Subject 1,0 L. c. and d. of this p.;ragraph when
rH<l511I;aLle in r'~lalion,to the servicf~s
rendered !Jnd when not contingent upon
recovery of the cosls from the Government.
b. In dct::rming the allowaLilily or r.osts in
B particular Cl\se. no single factor or any
special combination of faclors is necessaril)'
delerminative. However. the following
flJl;lnrs arc re.levant:
(1) The nature and scolle of the service
rClulered in reI a tion to the service required.
(2) The necessity of conlracting for the
service, cnnsidering the organizalion's
r.lIpahility in the parliculnr area.
(3) The pasl pattern of such costs.
particularly in the years prior to Government
awards.
(4) The impact of Government aWards on
the organization's business (Le.. what new
prohlems have arisen).
(5) \'Vhether the proportion of Government
work to the organization's total business is
su.:h as to inOuence the organiza tion in favor
of incurring the cost. particularly .....here the
services rendered are not of a continuing
nature and have little relationship to work
under Government grants and contructs.
(6) Whether the service can be performed
more economically by direct employment
rather than contracting.
[7) The qualifications of the individual or
concern rendering the service and the
cuslorYl'lry fees charged, especially on non-
Government awards.
(0) Adequacy of the contractual agreement
for the service I e.g.. description ,of the service.
estimale of time required. rale of
compen~ation. and termination provi~ions).
c. In uddition to the factors in paragraph b
above, rctRiner fees to the allowable must be
sllpported by evidenr:e of bona !ide services
avail:Jb\e or rendered.
d. Cosl of legRI. accountinF,. and consulting
sef\'ices. and related cosls illcurred in
conn~ction with defense of antitrust suits;
and the prosecution of clai.:ns a~ainst the
Government. arc llllallowllble. Cost~ of legal.
ar.~ounting und consulting services. and
related cosls. incurred in conneclion with
palenl in(ring'!mcnt litigation. orgRnization
und reorganization. arc unallowable unless
Glherwi~e prcwideclfo)' in the award (but see
parngraph 47e),
35. Profits and lasses on disposition of
depreciable property or ather capital assets.
a. (1) Gains and 10Rses on sale. retirement.
or other disposilion of riepreciable property
shell be inclurled in the year in which the\'
occur as cn~d:~c, or charges to cost groupi~g{S)
in whfch the dr,prcciation applicable to such
property was included. The amount ~f the
f!ain or lo~s to be inr.ludecl as a credit or
ch;orge 10 the appropriale cost grllllping(s)
sl1.':1 be the dilfercnce llctwC'en the amount
r<'nlized on the prGperty and the
lJnui'precialed basis or tlie property.
(2) Gair.s and losses on the disposition of
c1cf.reciable property shall not be recognizcd
n~ II separate credit or charge under the
foil owing conditions.
I"] The gnin or loss is processed through II
ueprecialion reserve acconnt and is r<:necleu
in the Jepreciation allowatJie under
Ililro~rDph 9.
[h) The propcrty is given in exchange a~
pari of the purchase price of a similar item
ann the gain or loss is taken into account in
clr.'erl1lining the depreciation cost basis of the
new item.
(c) A loss re~ulls rrom the fuilure to
maintain permissible insurance. except 08
otherwise pruvided in pltragraph 1[J.a.(3}.
(e1) Compensation for the use of the
prt'pert)' waS provided throngh use
allownnce9 in lieu of depreciation in
occord,lOce wilh paragrnph 9.
(c) Gains and losses arising from mass or
extraordinan' sa le5. retirements. or olher
dispositions shall be considered on a case-
by"cn~e basi8.
"b. Gains or losses of any nature arising
from the sule or exchange of property other
than the property covered in paragraph a.
above shall be excluded in computing award-
costs.
36. Public infarma/iun sen'ice costs.
a. Public information service costs include
the cost associated 'with pamphlets. news
releases, and other forms of information
services. Sur.h costs. are normally incurred to:
(1) inform or instruct individuuls. groupS. or
the general public.
(2) interest individuals or groups in
pnrticipaling in a seT'/ice program of Ihe
01 gsniza tion.
(3) Disseminate the resulls of sponsored
and nonsponsored acti\'ilies.
b. Public info:matioil sen'ice costs are
allowable as direct costs wilh the prior
a;;pro\'al of th" awarding agency. Such costs
Oie unallowable as indirect costs.
37. publica/ion and printing costs.
a. publication costs include the Cost6 of
printing (includi:1g Ihe proces.es 'of
composition. plate-making, press work.
binding. and the end products produced by
s\lr.h processes). distribution. promotion.
mailin~. and general hanuling.
b. If these costs are not identifiable with a
particular cosl objective. thr.y should be
allocated as indirect costs to all benditing
activities of the organizalion.
c' publication ann printing costs are
unailowable as direct costs except with the
prior approval of the awarding agency.
d. The cost of page charges in journals is
addressed pllragraph 26.
3[J. Rearrangement. and aI/era/ion costs.
Costs incurred for ordinury or normal
marrangement and allcralion of facilities orc
allowable. Speciolll;rrangement and
alteration costs incurred specifically for the
project are II110wable with the prior approval
of the awarding agency.
39. Recanversion costs. Costs incurred in
the nlstoration or rehabilitation of the
organl=tion's lndlltics 10 approximately the
_I
A-122:9
same condition existing immediately prior to
commencement of Government a wards, fair
wear and tcar excepted. liTe allowable.
40. Recruiling costs. The following
recruiting costs are allowable: cost of "help
wanted" advertising. operating costs of an
employment office. costs of operating an
educational testing program. travel expenses
including food Bnd lodging or employees
while engaged in recruiling personnel. travel
costa of appliconts for intervicws for
prospective employment, and r('lor.alion costS
incurred incident to recruilment of new
employees l~ce porograph 41C). Where the
organization uses employment ageocies.
costs not in exGCSS of standard commercial
rale8 lor such sen-ices are allowable.
41. Reloca/ion casU.
a. Relocation costs are cosls incident to the
permanent change or duty assignment (for an
indefinile period or for a stuted period of not
less than 12 months] of an exi~ling employee
or upon recruitment of a new employee.
Relocalion costs ore ollowuble. subject to the
Iimilotion de~cribed In parographs b. c. and d.
below, provided that:
(1) The move 15 for the br.ndi\ of the
employer.
(2) Reimbursement to the employee is in
accordance with on established written
policy consistently followed by the employer.
(3) The reimbursement docs not exceed the
employee's octual (or reasonably estimated)
expenses.
b. Allowable relocation cosls for current
employees ore limited to the following:
(1) The costs of transportation of the
employee. members of his immediate family
nnd his household. and l,ersonal effects to the
new location.
(2) The costs of finding a new home. such
as advance trips by employees and spouses
to locate living quarters and temporary
lodging during the transition period. up to a
maximum period of 30 days. including
advance trip time.
13] Closing costs. such as brokerage. legal..
nnd appraisal lees. incident to the disposition
of the employee's former home. These costs,
together with those described in (4) below,
are limited 108 per cenl of Lbe'lsales price 01
the employec's formlV home. '-
(4) The continuing costs of ownership of
the vacant former borne alter Lbe settlement
or lease date of the employee's new
permanent home. such as maintenance of
buildings and grounds (exclusive of fixi~ up
expenses). utilities. taxes. and property
insurance.
(5) Other necessary and reasonable
expenses normaliy incident to relocation.
such as the costs or canC€Ui~ an unexpired
lease. disconnecling and reinstalling
household appliances. and purchasing
insurance against loss of or damages to
personal property, The cost of cancelli~ an
unexpired leBse is limited to threa times the
monthly rentaL
c. Allowable relocation cosl$ fOT new
employees are limitad to Lbo!le described in
(1) and [2) of paragraph b. above. When
relocation costs incurred incident to the
recruitment of new employaas have been
sllowed eitber B.ll a direct or iRdirect wat and
the employee T06igns for reasons within bis
ry .
_....'i'~
",
I
OHice of Management and Budget Circular A-122 (6/27/80)
control within 12 months after hire. the
organization shall refund or credit the
Government for its share of the cost.
However, the costs of travel to an overseas
location shall be considered travel costs in
accordance with paragraph 50 and not
relocation costs for the purpose of Ihis
paragraph ii dependents are not permitted at
the location for any reason and the costs do
not include costs of transporting household
goods. .
d. The following costs relnted to relocatIOn
are unallowable:
(1) fees and other costs associcled with
acquiring a new home.
(2) A loss on the snle of a former home.
(3) Continuing mortgllge principal and
interest pa)'TTlents on a home being sold.
(4) Income taxes pnid by Gn employee
relaled to reimbursed relocntion costs.
42. Renlal casls.
a. Subject to the limitations describerl in
parag~aphs b. through d. of this paragraph,
rental costs are allowable to the exteIltthat
the rates are reasonable in light of such
faclors as: rental costs of comparable
property, if any: market conditions in the
area; alternatives available; 'and the type, life
expectancy. condition, and value of the
property leased.
b. Rental costs under sale and leaseback
arrangements Are allowable only up 10 the
amount that would be allowed had the
organization continued to own the property.
c. Rental costs under less-than-length
leases are allowable only up 10 the amount
that would be allowed had title to the
property vested in the organization. For t.hJs
purpose, a less-than-arms-!ength lease is one
under which one party to the lease agreement
is able to control or substantially infiuence
the actions of the other. Such lc~ses include,
but are not limited to those between (i)
divisions of an organization; (Ii) orgonizations
under c:ommon control through common
officers, directors, or members; and [iii) an
organization and a director, trustee, officer.
or key p.mployee of the organi;:.ation or his
irr.mediate family either directly or tr.rough
corporations, trusts. or similar arrangements
in which they hold a controlling interest.
d. Rental costs under leases wbich create a
material equity in the leased rrop"rty are
allowable only up to the amow:; tlwt would
be allowed had the organization purr.hosed
the property on the date the lease agreement
was executed; e.g., dep~eciation or use
allowances. maintenance, taxes, insurance
but excluding interest expense lind oil,er
unallowable costs. For this purpose, a
ma terial equity in the property exists if the
lease in noncancelable or is cancelable on)"
upon the occurrence of some remote -
contingency and has one or more of the
following characteristics:
(1) The organization has the right to
purchase the property for a price which al the
beg;nning of the lease appears to be
substantially less than the probable fair
market value at the time it is permitted to
purchase the property [commonlv called a
lease with a bargain purchase option);
(2) Title to the property passes to the
organiza tion al some lime during or after the
lease perioc!:
(3) The term of the lease (initial term plus
period, covered by bargain renewal options,
If any) is equal 10 75 per cent or more of the
economic life of lhe leased property; i.e., the
period the properly Is expected to be
econor.1ically usable by one or more users.
43 noyo/lies and other cosls lor use of
pal ".' and copyrighls.
a. ) ;yalties on a pa tent or cop)'fight or
amortization of the cost of acquiring by
purchase a copyright, patent. or rights
thereto. necessary for the proper performance
of the award are allowable unless:
(1) The Government has 8 license or the
right to free use of the patent or copyright.
(2) The patent or copyright has been
adjudicated to be invalid. or has been
administratively determined to be invalid.
(3) The palent or eopyrighl is considered to
be unenforceable.
(4) The palent or copyright is expired.
b. Special care should be exercised in
determining reasonableness where the
royalties may have been arrived at 8S a result
of less then arm's length bargaining: e.g.:
(1) Royalties paid to persons, including
corporations. affiliated with the organization.
(2) Royalties paid to unaffiliated parties,
including corporations, under an agreement
entered into in contemplation that a
Government awerd would be made.
(3) Royalties paid under an agreement
entered into after an award is made to an
organization,
c. In any case involving a patent or
copyright formerly owned by the
organization. the amount of ro)'alty allowed
should n{)t exceed' the cost which would have
been allowed had the organization retained
title thereto.
44. Severance pay.
a. Severance pay, also commonly referred
to as dismissal wages. is a payment in
addition to regular salaries and wages. by
organizations to workers whose employment
is being terminated. Costs of severance pay
are allowable only 10 the extent lhat in each
case. it is required by (i) law. (ii) employp.r-
e:npioyee agreement. [iii) est::lblished policy
that con:;titutes. in effect, an implied
agrecr.>ent on the organi:.ation's part, or [iv)
circ\:In51a:lces of t::e particular employment.
b. Costs of severance p:Jyments are di\'ided
into Iwo categories as follews:
(1) Actual normal trunover Gcvera:Jce
payments shall be allocated to all ac:livities;
or, where the organization provides for a
re~erve for normal severances such method
will be acceptable if the charge to current
operalians is reasenable in )jrht of payments
actually made for normal sevp,rances over a
representative past period. and if amounts
char;?:?d are allocilled to all 3ctivilies of the
organization.
(2) Abnormal or mass severance p~y is of
such a conjectural naiure that measurement
of costs b\' means of an accrual will net
<;chie'.'e equity to both parties. Thus. accruals
for tnis pu'pose are not allowable. However,
the Government recognize~ itG obligation to
participate to the extent of its fair share, in
any specific payment. Thus, allowobility will
be considered on a case-by-case basis in the
event of nccurrenc:e,
45. Specialized sen'ice locililies.
a. The costs of sen'ices provided by highly
-'
A-122:10
complex or specialized facilities operated by
the organization. such as electronic
computers and wind tunnels, are allowa ble
provided the charges for the services meet
the conditions of either b. or c. of this
paragraph and, in addition, take into account
any items of income or Federal financing that
qualify as applicable credits under paragraph
A.5. of Attachment A.
b. The costs of such services, when
material. must be charged directly to
applicable awards based on actual u.~age of
the services on the basis of a schedule of
rates or established methodology that (i) docs
not discriminate against federally supporled
activities of the organiZation, including usage
by the organization for internal rurposes. and
Iii) is designed 10 recover only the aggregate
cosls of.Hle services. The costs of each
service shall consist normally of both its
direct costs ~nd its allocable share of all
indirect costs. Advanc:e agreements pursuant
to parugraph A.5. of Attuchment 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.
3. In general. taxes which the organiz31ion
:s required to pay and whd1 are p~id or
,acr.rued in accordiince with generally
accepted accounting principles, and
paymenls 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
direct!\' or which are avail"ble to the
organi~ation based on an exemption afforded
the Government and in the latter case when
the awarding agency makes ev~j!able the
n~ce~sary exem;Jtion certificates, Iii) special
aS6es~men!s on land which represenl capital
improvements. and (iii) Federal income taxes.
b. Any refund of taxes, and any p~yment 10
the or~anization of inleresltherean. which
were ~lIowed as award costs, will be
credited either as a cos! reduction or cash
refund. as appropri~le, to Ihe Government.
47. Terminulion cas Is. Terminali~n of
nwards generally give rist to the i1'lcurr"ilt:C:
uf costs. or the neer:l for special treatmenl of
costs. which would not have arisen had the
aW3rd not been termin~ted. Cost principles
cl)vering these items arc set forlh below.
They are to be used in conjunction with the
'other provisio:J~ of this Circul'lr in
termination situations.
R. Cammon ilems. The cusl of items
reasanatJly usable on the organi;:ation's ether
work shall not be a!lowable unless the
orR:Jr.izalion submits evidence that it would
not retain such ilems al cost without
suslnining a loss, In deciding whether such
ilems a~e reason:Jbly usable on otner work of
the organization. the awardil:g agency shouid
consider the organiz~lion's plans and orders
for current and scheduled activily.
Contemporaneous purchases of common
ilems by the organization shall be r('parded
~s e\'idence thai such items are reasonably
usaule on the orgonizalion's other work. Any
llcceplance of common items as allocable to
the terminated portion of the aware! shall be
Iimiled to the exlent that the qllanlili"s of
,
A ",\~' .
I
Office of Management and Budget Circular A-122 (6/27/80)
such items on hand. in transit. and on order
are in excess of the reasonable quantitative
requirement.! of other work.
b. Casu continuing after tennination. U in
a panicWar case, despite all reasonable
efforts by the organiza tiOD. certain costs
cannot be discontinultd iInmedia tely alter the
effective date of termination. such cost.! are
generally allowable within the limitations set
forth in this CirculIlI. except that any such
costs continuing after termination due to the
negligent or willful failUT1l of the organization
to discontinue such costs shall be
unalloweble. .
c. Loss of useful value. Loss of useful value
of srecialtooling, machinery and equipment
wi>,,-h was not charged to tbe aWllId as a
c:;J.".;al expenditure is generally allowable if:
i: . Such speciallooling, mac:.inery. or
eq, :;IDlent is not reasonably capable of use in
UF. v ther work of the organiz.a tion.
(::l The interest of the Govemme:ll is
r~r Jr.t?d by transfer of title or I ,yother
mr:l:J.S deemed appropriate by the awarding
a':' ncy;
'Ii. Rental casu. Rental costs under
u:"'f:xpired leases are generally allowable
y, ,'l)re clearly shown to have been
rt...~onably necessary for the perfonnance oC
I!,,, tenninated award less the residual value
0:' suchledaes. if (i) the amou.,t of such rental
ci..imr.d does not exceed the reasonable use
val:.Je of the property leased for the period of
th~ aw"rd and such further period as may be
rp'.,.;IJI:.:ble, and (ii) the organization makes
all reasonable efforts to temUnate. assign.
settle. or otherwise reduce the cost of such
lease. There also mav be included the cost of
alterations of such le'aaed property. provided
such al:erations were necessllIj' for the
perfonnance of the award. and of reasonable
restor:;tion required by the provisions of the
lease.
e. Settlement expenses. Settlement
expenses including the following ano
generally allowable:
(1) Accounting. legal clerical. and similar
costs reasonably nec~ssary for.
(a] The preparation and presentation 10
awarding agency of settlement claims and
supporting data with reapec:t to the
terminated portion of the award. unless the
lermL,ation is ior default. (Sce parllg:raoh 4.a
of Attachmcnt 1.. OMB Cln:ular No. A-i.10:
and
(b) Toe lennination and settlement of
subawaro.,.
(2) Reasona ble coslB for the storage.
lranspOr1atioI'_ prolection. and disposition of
properly pro\.jded by the Government or
acquired or produced for the aware: except
when grantees~ reimbursed for disposa.U
at a predetermined amo=l in accordance
with Attachment N of OMB Circuiar A-no.
(3) Indirect costa related 10 s<<lariea and
wages incn.rred as settlement expense1l in
subparagraphs (1) and (2) of this pllIagraph.
Normally, such indinct coat.! shall be limilcd
10 fringe benefiLs. occupancy cosL and
immedia te supervision.
l. Claims lL'lder subowords. Claims u.,der
subawards. including the allocable portion of
claims which are common to the award. and
to other work of Ihe o~anization are
generaUy allowable. An appropriate share of
the organiution's indirect expense may be
allocaled to the amount of settlemenls with
subcontractorlsubgranlees; provided that the
amount allocated is otherwis~ consistenl
with the basic guidelines contained in
Attachment A. The indirect expense so
allocated shall exclude the same and similar
costs claimed directly or indirectly as
settlement expenses.
48. Training and educot.ion coau.
a. Cost.! of preparation and maintenance oC
a program of ins tIllC ti on including but not
limiled to on-the-job. classroom. and
apprenticeship training. designed to increa511
the vocational efiectivenen o! employec5.,
including training materials. textbo04
salaries or wages of trainees (excluding
overtime compellBation which might ari~
therefrom). and Ii} salaries of the director of
training and sta!! when the training program
is conducted by the organization: or (ii]
tuition and fees when the training ia in an
inatitution Dot operated by the organization.
are allowahle.
b. Cosls of part-lime education. at an
undergraduate or poslgraduate college level
including that provided at the organization's
own facilities. are allowable only when the
course or degree pur.rued is relative to the
field in which the employee is now working
or may reasonably be expected to work. and
are limiled to:
(1) Training materiala.
(2) Textboou.
'(3) Fees chargell by the aaDcatillnal
institution.
(4) Tuition charged by the educational
institution. or in lieu of tuition. instructors'
salaries and the tela ted share of indirect
costs of the ec!ucational institution to the
extent that the sum thereoC i.s not in excess of
the tuition which would have ben paid to tha
participating educational instltution.
(5) Saiaries and related costs of instructors
who are employeas of tha OrganizatiUOL
(6) Straight-lime compensation of each
employee ior time spent attending classes
during werking hours oot in excess of 156
hours per year and only 10 the extent that
circumslan= do not permit the operation oC
classes or a ttendance a t classes after regular
working hours: otherwise such compen.sation
is unallowable.
c. C.:Jsts of tuition. fces. traini:lg materials.
and textboou (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 co~e or
degree pursued is related to the field in which
the employee is now working or may
reaaonably be expected to work. and only
where the cost.! receive the prior approval of
the awarding agency. Such cosu are limited
to !be costs attributable to e total period not
10 exceed OI1e school year for each employee
so trained. In unusual cases the period may
be extended.
d. Costs of attendance of up to 16 week"
per employee per year at specialized
programs specifically designed to enhance
the effectiveness of executives or ma=gel'3
or 10 pr-cpare employees ior suc.b positions
are allowa ble. Such cos LA include emollmen t
-I
A-122:11
fees. training materials. textboob and
related charges. employees' salaries.
subsistence. and traveL Cost.! allowable
under this paragraph do not include thO!H! for
coones that are part of a degree-<>rienled
curricwum. which are allowable only 10 the
ex:tenl set forth in b, and e. above.
e. Maintenance expen.se. and nonnal
depreciation or fair rental on facilities
owned or leased by the o!1;anU.ation for
training purposes are allowable to the extent
set fnrlh in paragraphs 9. 2.2. and 42.
r. CuntributiollB or donations 10
educational or training inatitutions. lncludlng
tl:e donation of facilities or other propr.rties.
snd 8cholanhips or fellowships. are
unallowable.
g. Training and educetion cosUl in eXCC88 01
those olherwise allowable under paragraphs
..b. and c. of this paregraph may be allowed
with prior approval oC"the awarding agency.
To be considered for epproval. the
organization must demonstrate thai such
costs are consistently incurred pursuant to an
eSlublished training and educa:ion progrnm.
and that the course or degree pursued is
relative to the field in which the employee is
now working or may reasoncbly be expected
10 work.
49. Transportation costs. Transportation
C0StS include freighL express. cartage. and
postage charges relating either to goods
purchased. in process. or delivered. These'
costs are allowable. When 8uch costs can
readily be identified with the ilelIUl involved..
they may be directly charged as
tr,lDsportalion cosLs or added to the cost oE
such items (see paregraph 23). Where
identification with the materials received
canno: readll}' be made. transportation costs
may be charged to the appropriate indirect
cost accounts if the organiz-ation follows a
consistent. equitable procedure in this
re~pe~L
50, Travel cosu.
a. Tra vel costs are the expenses for
lransportation. lodging. su~istence. and
related items incurred by employee. who are
in tra vel status on official business of the
organizRtion. Travel cosls are allowable
subjectlo paragraphs b. tfu.o\).g.h e. below.
when they are ~ectly attributaole to specific
work under an award or are incurred in the
nonnal course of administration of tha
organiza tion.
b. Such costs may be charged on an actual
basis. on a per diem or mileage basis in lieu
of actual cosU! incurred. or on a combination
of the tWo. pro..-ided the method W1ed resulLA
in chaI"Bes consistent with those normally
allowed by the organiza tion in its regular
opera tions.
e. The di!ference in cos t between first-class
air acco=odations and less than first-class
air accommodations is unallowable except
when less than first-class air
accolT'JDodation.s s..-e not reasonably
8 vailable to meet necessary mission
requirements. such as where leas than flJ1lt.
class accommodations would (i) require
circuitoUll routing. (il) requin travel during
unreesonable hours. (iii] greatly increase the
duration' of the night. (iv) result in edditional
Cosls ,.:hich would offset the transportation
sa\'i~p. or (v) offer nccomrnodntio'ns whic.b.
of
'j-"
4..\! '" J
l< .
\
--1--
t
)tflce of Management and Budget Circular A-122 (6/27/80)
,re not ~uonablyadeqU8t.e for the medical
,~d.B oC the traveler.
Ii: Necessary and rouonaOttl costs of
amily movements and penoonel movements
;{ a special or m88S nature are allowable.
cUr3uant to paragrspha 40 and 41, subject to
dlocation on the basis of work or time period
Jer.efited when appropriate. A~vance
'greements are particularly impo:1anL
e. Direct charges for foreign travel costs are
dlowable only wben the travel has received
Jrior approval of the awarding agency. Each
'cparote foreign trip must be approved. For
Jurposes of thia provision. foreign travol is
:efined as any ,travel outBide o{ Canada aDd
~e United States and ils territories and
Jossessions. However. {or an organiza tion
.ocaled in foreign countrics. the term "{oreign
ravel" meam travcl outside that counlIJ'.
Circular.No. A-l2.2J
.-\ltachmenl C
:-':onprofit Organizations not Subject to t.h.iB
C:rcuLu
.-\erospace Corporation. El Segundo.
California
.-\r3onne Universities Association. Chicago.
Illinois
.-\ssocialed Universitiea'. Incorporated.
vVasltington. D.C.
';'ssociated Universities {or Research and
Astronomy, Tucson. Arizona
-\tomic Casualty Commission. Was~ton.
D.C.
3attelle Memoriallnstitute. Headqulirtered in
Columbus. Ohio
3rook..,aven National Laboratol1', Upton.
New York
:enter {or Energy and Environmental
Research (CEER), (University of Puerto
Rico)
:ommoowealth of Puerto Rico. Charles St.a>k
Draper Laboratory. lncorporated
:am bridge. Massachusetts. Compara tive
Animal Research Laboratory (CARL)
Unin:-sity of Tennessee). Oakridge.
Ter..ne.,see
:nviromnental Lostitule of Michigan. Ann
Art-or. Michigan
lar.ford Environmental Health Foundation.
Richland. Washington
~ Research Institute. Chicago. illinois
'~tilute for Defense Analysis. Arlington.
Vi16inia
1stilute of Gas Technology, Chicago, l.l.linDis
{idwest Research Institute. Headouartered
in l<unsas City, Missouri .
litre Corporation. Beword. Massachusetts
lontana E.nergJ' Research and Development
Institute. lnc~ (MERDI). Butte. Montana
a tional Radiological Astronomy
Observatol1', Green Bank. West Vlrg-ir:ia
raklidge Associated Universities, Oak..-j~.
Tennessee
~oject Management Corpora tion. Oakridlle.
Ter..:1esses -
aDd Corporation. SaDta Monica. California
esearch Triangle bstitute. Research
Triangle Park. North Carolina
ive:-side Research Institute. New York. New
York
3ndia Corporation. Albuquerque. New
\."ny:;n
Southern Resean:h lnstitutB. Birmingham.
AlablUll8
Southwest Resean:h Institute. San Antonio.
Texa.
SRI International. Menlo Parle. California
Syracuse Resean:h Corporation. S)T8C\ae.
New Yorx
Universities Research Al8ociaUon.
lncorporated (National Acceleration Lab),
Argonne. Dlinois
Universities Corporation for Atmospheric
Research. Boulder, Colorado
Nonprofitlnsurance Companies such a. Blue
Cross and Blue Shield OrganizaUons
Other nonprofit organizations as negotiated
'Nith awarding agencies.
fFR Doc.. 110-=0 f1lo<l '-7-<<1; r.:~ ami
~ COOE 311lHll-!ol
Editorial Corrections to
OMS A-122
OFFICE OF MANAGEMENT AND
BUDGET
Circular A-122, "Cost Princip~s lor
Nonprofit Organizations"; Correction
AGENCY: Office of Management and
Budget.
ACTION: Final policy correction.
SUMMARY: This notice corrects errors in
the printing of cost principles for
nonprofit organizations. (45 FR 4602.2,
July 8, 1980).
FOR FURTHER INFORMATION COtITACT:
Palmer Marcantonio, Financial
Management Branch. Office of
Management and Budget. Washington.
D.C. 20503, (202) 395-4773.
. Page 46022. column 2 the sec:ond
Paragraph 1, change Paragraph 5
"Compensation for Personnel Services"
10 Paragraph 6.
. Pope 46022, column 2 the second
Paragraph 2. change Paragraph 6
"Contingencies" to Paragraph 7.
. Page 46022. column 3:
Paragraph 4. change Paragraph 31.
"Equipment and Other Capital
Expenditures" to Paragraph 13.
. Paragraph 5, change Paragraph 26
"Meetings" to Paragraph 24.
. Paragraph 6. change Paragraph 27,
"Organir.ation Costs" to Paragraph'26.
. Paragraph 7, change' Paragraph 30
"Page charges in Professtional Journals"
to Paragraph 28.
. Paragraph 8. change paragraph 37
"Public Informa tion Service Costs" to
Parngraph 36.
. Paragraph 9. change Paragraph 43
"Renlal Costs" to Paragraph 42.
. Paragraph 9a: in the fourth line. add
"up" between the words "only" and
"\0"; in the sixth line change "they" to
"it".
. Parngraph 10, change Paragraph 51
""":--:l\'pl rn~ls" In r~r~pr;:nh :_f1
-t-
A-122:12
. Page 46024. column 3 Paragraph
4(a)(2) after "uenefits received" add ";
or".
. Pope 46025, column 1 Paragraph B3,
change the reference "Paragraph 21 of
Attachment B" to "Paragraph 19 of
Attachment B."
. Page 46026, column 1 Paragraph
4a.iii. in the sixth line, change "direcl
cosl" to "direct costs."
. Page 46026, column 2 Paragrnph
E1 e, chan!!e "e'stablishment of a ra te" to
"establishment of a final rale."
. Page 46026. column 3 Paragruph
E2b. in the third line add the following
after "a Federal agency shall"-"submit
its initial indirect cosl proposal
immediatel"."
. Pa.Re 4rx127, column 3 Paragraph
(3)(0). change "workmen's
compensation" to "workerF'
compensa tion."
. Page 46028. column 1 P<lragraph
6[3(b), (the second line of column 1)
change "Workmen's compen5<1tion" to
"workers' compensation."
. Page 4(j(J30, .column 3, paragraph
24h" the sixth line, change "allowable"
to "allowability".
Donicl F. Mann,
Dudgcl ond MWlOgemenl Officer.
IFR Doc.It1-"07J Filed 3-16-ll1: M5 oml
BIlJ..INC COOE 311lHll-M
Circular A-122, "Cost Principles lor
Nonprofit Organizations"
Correction
In FR Doc. 81-20270, appearing at
page 46022 in the issue of Tuesday, July
fl. 19M. the following changes should be
made:
1. On page 46024. column three, the
second sentence in paragraph 'A.5.b.
should read, "SpecificB!lly, the concept
of nelling such credit items against.
related expenditures should be applied
by the organization in determining the
rates or amounts to be charged to
Federal awards lor services rendered
whenever the facilities or other
resources used in providing such
services have been financed directly. in
whole or in part, by Federal funds."
2. On page 46024, column three, the
second complete sentence in paragraph
A.6, should read. "This is particularly
true in connection \,vilh organiza lions
that receive a preponderance of their
support from Federal agencies."
3. On page 46025. column one,
paragraph B.2. should read, "2. Any
direct cost o[ a minor amount may be
treated as an indirect cost [or reasons of
practicality where the accountint;
treatment for such cost is consistently
nrrl;pd In nil final r.o~t nhi('c:tive~."
\
.
;':.'
"'-;.." . ..,
- ~
\
I
O~ce of Management and Budget CircularA-122 (6/27/80)
4. On page 46025, column one,
paragraph B.4.f. should read, "f.
Administration of group benefits on
behalf of members or clients including
life and hospital insurance, annuity or
retirement plans, financial aid, etc."
5. On page 46025, column two, the !irst
sentence in paragraph D,l.e. should
read, "The base period for the slloca tion
of indirect costs is the period in which
such costs are incurred and acc\lmulated
for allocation to work performed in that
period."
O. On page 4G02G. column one. the
second sentence in paragraph D.3.d
should read, "The costs in the common
pool shall then be distributed to
individual awards included in that
[unction by use o[ a single indirect cost
rale."
7. On page 46020. column one, the firsl
sentence in puragraph 0.3.e. should
read. "The distribution based used in
computing the indirect cost rate for each
funclion may be total direct costs
(excluding capital expenditures and
other dislorting ilems such as major
subcontracts and subgrants). direct
:;alories and wages. or other base which
results in an equitable distribution."
8. On page 46020. column one. the !irst
and second sentences in paragraph
O.4.a. should read. "Some nonprofit
organizations treat all costs as direct
costs except general administra lion and
general expenses. These organizations'
generally separate their cosls into three
basic cate!lories:' . '."
9. On page 46020, the last sentence in
column one (extending to column two).
in paragraph 0.5. should read, "The
factors may include the physical
loca tion of the work. the level of
administrative support required. the
nature o[ the [acilities or other resources
employed. the scientific disciplines or
technical skills involved, the
organizational arrangements used. or
any combination thereof."
10. On page 46026. column three.
paragraph E.2.i. should read, "j, To the
extent tha I problems are encountered
among the Federal agencies in
connection with the negotia tion and
approval process. the Office of
Management and Budget will lend
assistance as required to resolve such
problems in a timely manner."
11. On page 46030, column one, the
introductory text of paragraph 16.0. and
paragraph 16.0.(1) should niad. "b. The
costs of idle facilities are unallowable
except to the extent that: (1) They are
necessary to meet Ductuations in
workloads: or".
12. On page 46030. column one. the
second sentence in paragraph 16.c.
should read. "Such costs are allowable.
provided the capacity is reasonably
antidpated to be necessary or was
originally reasonable and is not subject
to reduction or elimina tion by sublelling.
renting. or sale. in accordance with
sound business. economics or security
practices."
13. On pRge 46031. second column.
paragraph 34.c. should read. "In addition
to the factors in paragraph b. above.
retainer [ees \0 be allowable must be
supported by evidence o[ bonR fide
services available or rendered."
PILUNO COOf 'SO~'4ol
-I
A-122:13
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