Revision of budget and programs plans (29 CFR 95.25)

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§ 95.24

29 CFR Subtitle A (7–1–09 Edition)

Value assessed to donated supplies included in the cost sharing or matching
share shall be reasonable and shall not
exceed the fair market value of the
property at the time of the donation.
(g) The method used for determining
cost sharing or matching for donated
equipment, buildings and land for
which title passes to the recipient may
differ according to the purpose of the
award, if paragraph (g)(1) or (g)(2) of
this section apply.
(1) If the purpose of the award is to
assist the recipient in the acquisition
of equipment, buildings or land, the
total value of the donated property
may be claimed as cost sharing or
matching.
(2) If the purpose of the award is to
support activities that require the use
of equipment, buildings or land, normally only depreciation or use charges
for equipment and buildings may be
made. However, the full value of equipment or other capital assets and fair
rental charges for land may be allowed,
provided that the grant officer has approved the charges.
(h) The value of donated property
shall be determined in accordance with
the usual accounting policies of the recipient, with the following qualifications:
(1) The value of donated land and
buildings shall not exceed its fair market value at the time of donation to
the recipient as established by an independent appraiser (e.g., certified real
property appraiser or General Services
Administration representative) and
certified by a responsible official of the
recipient.
(2) The value of donated equipment
shall not exceed the fair market value
of equipment of the same age and condition at the time of donation.
(3) The value of donated space shall
not exceed the fair rental value of comparable space as established by an independent appraisal of comparable space
and facilities in a privately-owned
building in the same locality.
(4) The value of loaned equipment
shall not exceed its fair rental value.
(5) The following requirements pertain to the recipient’s supporting
records for in-kind contributions from
third parties:

(i) Volunteer services shall be documented and, to the extent feasible, supported by the same methods used by
the recipient for its own employees.
(ii) The basis for determining the
valuation for personal service, material, equipment, buildings and land
shall be documented.
§ 95.24 Program income.
(a) Except as provided in paragraph
(e) of this section, program income
earned during the project period shall
be retained by the recipient and added
to funds committed to the project by
DOL and recipient, and used to further
eligible project or program objectives.
(b) Recipients shall have no obligation to the Federal Government regarding program income earned after
the end of the project period.
(c) Costs incident to the generation
of program income may be deducted
from gross income to determine program income, provided these costs have
not been charged to the award.
(d) Proceeds from the sale of property
are not program income and shall be
handled in accordance with the requirements of the Property Standards
(See §§ 95.30 through 95.37).
(e) Unless DOL’s regulations or the
terms and condition of the award provide otherwise, recipients shall have no
obligation to the Federal Government
with respect to program income earned
from license fees and royalties for
copyrighted material, patents, patent
applications, trademarks, and inventions produced under an award. However, Patent and Trademark Amendments (35 U.S.C. 18) apply to inventions
made under an experimental, developmental, or research award.
§ 95.25 Revision of budget and program plans.
(a) The budget plan is the financial
expression of the project or program as
approved during the award process. It
may include either the Federal and
non-Federal share, or only the Federal
share, depending upon DOL’s requirements. It shall be related to performance for program evaluation purposes
whenever appropriate.
(b) Recipients are required to report
deviations from budget and program
plans, and request prior approvals for

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Office of the Secretary of Labor

§ 95.25

budget and program plan revisions, in
accordance with this section.
(c) For nonconstruction awards, recipients shall request prior written approvals from the grant officer for one
or more of the following program or
budget changes:
(1) Change in the scope or the objective of the project or program (even if
there is no associated budget revision
requiring prior written approval).
(2) Change in a key person specified
in the application or award document.
(3) The absence for more than three
months, or a 25-percent reduction in
time devoted to the project, by the approved project director or principal investigator.
(4) The need for additional Federal
funding.
(5) The transfer of amounts budgeted
for indirect costs to absorb increases in
direct costs, or vice versa.
(6) The inclusion, unless waived by
the grant officer, of costs that require
prior approval in accordance with OMB
Circular A–21 (codified at 2 CFR part
220), ‘‘Cost Principles for Institutions
of Higher Education,’’ OMB Circular A–
122 (codified at 2 CFR part 230),, ‘‘Cost
Principles for Non-Profit Organizations,’’ or 45 CFR part 74, Appendix E,
‘‘Principles for Determining Costs Applicable to Research and Development
under Grants and Contracts with Hospitals,’’ or 48 CFR part 31, ‘‘Contract
Cost Principles and Procedures,’’ as applicable.
(7) The transfer of funds allotted for
training allowances (direct payment to
trainees) to other categories of expense.
(8) Unless described in the application and funded in the approved
awards, the subaward, transfer or contracting out of any work under an
award. This provision does not apply to
the purchase of supplies, material,
equipment or general support services.
(d) No other prior approval requirements for specific items may be imposed unless a deviation has been approved by OMB.
(e) Except for requirements listed in
paragraphs (c)(1) and (c)(4) of this section, the grant officer may waive costrelated and administrative prior written approvals required by this part and
OMB Circulars A–21 and A–122. Such

waivers may include authorizing recipients to do any one or more of the
following:
(1) Incur pre-award costs 90 calendar
days prior to award or more than 90
calendar days with the prior written
approval of the grant officer. All preaward costs are incurred at the recipient’s risk (i.e., the grant officer is
under no obligation to reimburse such
costs if for any reason the recipient
does not receive an award or if the
award is less than anticipated and inadequate to cover such costs).
(2) Initiate a one-time extension of
the expiration date of the award of up
to 12 months unless one or more of the
following conditions apply. For onetime extensions, the recipient must notify the grant officer in writing with
the supporting reasons and revised expiration date at least 10 days before the
expiration date specified in the award.
This one-time extension may not be exercised merely for the purpose of using
unobligated balances. The one-time extension may not be initiated if:
(i) The terms and conditions of award
prohibit the extension.
(ii) The extension requires additional
Federal funds.
(iii) The extension involves any
change in the approved objectives or
scope of the project.
(3) Carry forward unobligated balances to subsequent funding periods.
(4) For awards that support research,
unless the grant officer provides otherwise in the award or in DOL’s regulations, the prior written approval requirements described in paragraph (e)
are automatically waived (i.e., recipients need not obtain such prior written
approvals) unless one of the conditions
included in paragraph (e)(2) applies.
(f) DOL may, at its option, restrict
the transfer of funds among direct cost
categories or programs, functions and
activities for awards in which the Federal share of the project exceeds
$100,000 and the cumulative amount of
such transfers exceeds or is expected to
exceed 10 percent of the total budget as
last approved by DOL. DOL shall not
permit a transfer that would cause any
Federal appropriation or part thereof
to be used for purposes other than
those consistent with the original intent of the appropriation.

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§ 95.26

29 CFR Subtitle A (7–1–09 Edition)

(g) All other changes to nonconstruction budgets, except for the changes described in paragraph (j), do not require
prior approval.
(h) For construction awards, recipients shall request prior written approval promptly from the grant officer
for budget revisions whenever paragraphs (h)(1), (h)(2) or (h)(3) of this section apply.
(1) The revision results from changes
in the scope or the objective of the
project or program.
(2) The need arises for additional
Federal funds to complete the project.
(3) A revision is desired which involves specific costs for which prior
written approval requirements may be
imposed consistent with applicable
OMB cost principles listed in § 95.27.
(i) No other prior approval requirements for specific items may be imposed unless a deviation has been approved by OMB.
(j) When DOL makes an award that
provides support for both construction
and nonconstruction work, DOL may
require the recipient to request prior
written approval before making any
fund or budget transfers between the
two types of work supported.
(k) For both construction and nonconstruction awards, recipients shall
notify the grant officer in writing
promptly whenever the amount of Federal authorized funds is expected to exceed the needs of the recipient for the
project period by more than $5,000 or
five percent of the award, whichever is
greater. This notification shall not be
required if an application for additional funding is submitted for a continuation award.
(l) When requesting written approval
for budget revisions, recipients shall
use the budget forms that were used in
the application.
(m) Within 30 calendar days from the
date of receipt of the request for budget revisions, the grant officer shall review the request and notify the recipient whether the budget revisions have
been approved. If the revision is still
under consideration at the end of 30
calendar days, the grant officer shall
inform the recipient in writing of the

date when the recipient may expect the
decision.
[59 FR 38271, July 27, 1994, as amended at 72
FR 37104, July 9, 2007]

§ 95.26

Non-Federal audits.

(a) Recipients and subrecipients that
are institutions of higher education or
other non-profit organizations (including hospitals) shall be subject to the
audit requirements contained in the
Single Audit Act Amendments of 1996
(31 U.S.C. 7501–7507) and revised OMB
Circular A–133, ‘‘Audits of States,
Local Governments, and Non-Profit Organizations.’’
(b) State and local governments shall
be subject to the audit requirements
contained in the Single Audit Act
Amendments of 1996 (31 U.S.C. 7501–
7507) and revised OMB Circular A–133,
‘‘Audits of States, Local Governments,
and Non-Profit Organizations.’’
(c) For-profit hospitals not covered
by the audit provisions of revised OMB
Circular A–133 shall be subject to the
audit requirements of the Federal
awarding agencies.
(d) Commercial organizations shall
be subject to the audit requirements
specified by the DOL awarding agency
or the prime recipient as incorporated
into the award document. See 29 CFR
part 96.
[59 FR 38271, July 27, 1994, as amended at 62
FR 45939, 45942, Aug. 29, 1997]

§ 95.27

Allowable costs.

For each kind of recipient, there is a
set of Federal principles for determining allowable costs. Allowability of
costs shall be determined in accordance with the cost principles applicable
to the entity incurring the costs. Thus,
allowability of costs incurred by State,
local or federally-recognized Indian
tribal governments is determined in
accordance with the provisions of OMB
Circular A–87 (codified at 2 CFR part
225), ‘‘Cost Principles for State and
Local Governments.’’ The allowability
of costs incurred by non-profit organizations is determined in accordance
with the provisions of OMB Circular A–
122 (codified at 2 CFR part 230), ‘‘Cost

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