Federal State Marketing Improvement Prog. (State, Local, Tribal Gov't.)

FEDERAL-STATE MARKETING
IMPROVEMENT PROGRAM
(FSMIP)
Catalog of Federal Domestic Assistance Number 10.156

FY 2012 FSMIP
General Terms and Conditions
September 18, 2012

CONTENTS

1.

LEGAL AUTHORITY AND APPLICABLE REGULATIONS .......................................... 3

2.

DEFINITIONS ...................................................................................................................... 3

3.

ASSURANCES AND CERTIFICATIONS .......................................................................... 5

4.

FEDERAL AGENCY AND PROJECT COORDINATOR RESPONSIBILITIES ............. 9

5.

PRIOR APPROVAL REQUIREMENTS............................................................................ 11

6.

UNALLOWABLE COSTS ................................................................................................. 13

7.

FINANCIAL MANAGEMENT STANDARDS ................................................................. 15

8.

MATCHING REQUIREMENT .......................................................................................... 16

9.

PROCUREMENT................................................................................................................ 17

10.

CONSULTANTS ................................................................................................................ 19

11.

SUBAWARDS .................................................................................................................... 20

12.

TRAFFICKING IN PERSONS .......................................................................................... 20

13.

SYSTEM FOR AWARD MANAGEMENT AND UNIVERSAL IDENTIFIER
REQUIREMENTS ............................................................................................................. 23

14.

REPORTING SUBAWARDS AND EXECUTIVE COMPENSATION ........................... 25

15.

LIMIT OF FEDERAL LIABILITY .................................................................................... 29

16.

PAYMENTS ........................................................................................................................ 29

17.

PERFORMANCE REPORTING ........................................................................................ 30

18.

SITE VISITS AND PROJECT RECORDS ........................................................................ 32

19.

FRAUD, WASTE, OR ABUSE .......................................................................................... 33

20.

SUSPENSION/TERMINATION ........................................................................................ 34

21.

RECORD RETENTION AND CLOSEOUT ...................................................................... 34

2 of 34

1. LEGAL AUTHORITY AND APPLICABLE REGULATIONS
a. Administrative Provisions. This award, and subawards at any tier under this award, shall be
governed to the extent applicable by the following provisions:
(1) 7 CFR 3015, “Uniform Federal Assistance Regulations;”
(2) 7 CFR Part 3016, “Uniform Administrative Requirements for Grants and Cooperative
Agreements to State and Local Governments;” and
(3) 7 CFR Part 3019, “Uniform Administrative Requirements for Grants and Other
Agreements with Institutions of Higher Education, Hospitals, Non-profit Organizations,
and For-Profit Organizations.”
The Code of Federal Regulations (CFR) is accessible through the National Archives and Records
Administration: http://ecfr.gpoaccess.gov/cgi/t/text/text-idx?c=ecfr&tpl=%2Findex.tpl
b. Federal Cost Principles. Allowable costs will be determined in accordance with the
applicable program legislation, the purpose of the award, the terms and conditions of award as
contained herein and, if this award is to a recipient other than a Federal agency, by the following
Federal cost principles that are applicable to the type of organization receiving the award,
regardless of type of award or tier (i.e., grantee, subgrantee), as are in effect at the time of award:
(1) 2 CFR 225 (OMB Circular No. A-87), “Cost Principles for State, Local, and Indian
Tribal Governments.”
(2) 2 CFR 220 (OMB Circular No. A-21), “Cost Principles for Educational Institutions.”
(3) 2 CFR 230 (OMB Circular No. A-122), “Cost Principles for Nonprofit Organizations.”
(4) Federal Acquisition Regulations (FAR) (48 CFR Part. 31.2), Principles for determining
costs with profit making firms, “Contracts with Commercial Organizations.” The FAR
regulations are accessible through the Government Printing Office at
www.access.gpo.gov/nara/cfr/waisidx_02/48cfr31_02.html
The most current Circulars are available at: www.whitehouse.gov/OMB/circulars/
2. DEFINITIONS
Federal Agency – Federal-State Marketing Improvement Program, Agricultural Marketing
Service, United States Department of Agriculture.

3 of 34

Federal Agency Project Manager – the individual, acting within the scope of delegated
authority, who is responsible for executing and administering awards on behalf of the U.S.
Department of Agriculture. The Federal Agency project manager is:
Janise Zygmont, FSMIP Staff Officer
Federal-State Marketing Improvement Program
Agricultural Marketing Service, USDA
1400 Independence Avenue SW, Room 4549 – South
Washington, D.C. 20250
Telephone: (202) 720-5024
Fax: (202) 690-1144
Email: [email protected]
Grant – an award of financial assistance, including cooperative agreements, in the form of
money, or property in lieu of money, by the Federal Government to an eligible grantee. The
term Awardee is interchangeable with the term grantee.
Grantee – the eligible entity to which a FSMIP grant is awarded and which is accountable for
the use of the funds provided. The grantee is the entire legal entity even if only a particular
component of the entity is designated in the grant award document. The term subaward is
interchangeable with the term subgrant.
Grantee Project Coordinator– the individual who is authorized to commit the grantee’s time
and other resources to the project, to commit the grantee to comply with the terms and conditions
of the award instrument including those set out herein, and to otherwise act for or on behalf of
the grantee.
Subgrant – an award of financial assistance in the form of money, or property in lieu of money,
made under a grant by a grantee to an eligible subgrantee. The term includes financial assistance
when provided by contractual legal agreement, but does not include procurement purchases, nor
does it include any form of assistance which is excluded from the definition of grant in this part.
Subgrantee – the government or other legal entity to which a subgrant is awarded and which is
accountable to the grantee for the use of the funds provided. The terms subawardee and
subrecipient are interchangeable with the term subgrantee.

4 of 34

3. ASSURANCES AND CERTIFICATIONS
Assurances. As a condition of this grant award, the grantee assures that it is in compliance and
will comply in the course of grant performance with all applicable laws, regulations, Executive
Orders, and other generally applicable requirements, as prescribed by 7 CFR 3015, which hereby
are incorporated in this grant award by reference, and such other provisions as are specified
herein.
Certifications. In accepting this grant award, the grantee specifically certifies that it:
a. Has the legal authority to apply for Federal assistance and the institutional, managerial and
financial capability (including funds sufficient to pay the required non-Federal share of project
cost) to ensure proper planning, management and completion of the project described in this
application.
b. Will give the Federal Agency, the Comptroller General of the United States and, if
appropriate, the State, through any authorized representative, access to and the right to examine
all records, books, papers, or documents related to the award; and will establish a proper
accounting system in accordance with generally accepted accounting standards or agency
directives.
c. Will establish safeguards to prohibit employees from using their positions for a purpose that
constitutes or presents the appearance of personal or organizational conflict of interest, or
personal gain.
d. Will initiate and complete the work within the applicable time frame after receipt of approval
of the Federal Agency.
e. Will comply with the Intergovernmental Personnel Act of 1970 (42 U.S.C. §§4728-4763)
relating to prescribed standards for merit systems for programs funded under one of the 19
statutes or regulations specified in Appendix A of OPM's Standards for a Merit System of
Personnel Administration (5 C.F.R. 900, Subpart F).
f. Will comply with all Federal statutes relating to nondiscrimination. These include but are not
limited to:

5 of 34

(a) Title VI of the Civil Rights Act of 1964 (P.L. 88-352) which prohibits discrimination
on the basis of race, color or national origin;

(b) Title IX of the Education Amendments of 1972, as amended (20 U.S.C. §§1681-1683,
and 1685-1686), which prohibits discrimination on the basis of sex;
(c) Section 504 of the Rehabilitation Act of 1973, as amended (29 U.S.C. §794), which
prohibits discrimination on the basis of disabilities;
(d) The Age Discrimination Act of 1975, as amended (42 U.S.C. §§6101-6107), which
prohibits discrimination on the basis of age;
(e) The Drug Abuse Office and Treatment Act of 1972 (P.L. 92-255), as amended, relating
to nondiscrimination on the basis of drug abuse;
(f) The Comprehensive Alcohol Abuse and Alcoholism Prevention, Treatment and
Rehabilitation Act of 1970 (P.L. 91-616), as amended, relating to nondiscrimination on the
basis of alcohol abuse or alcoholism;
(g) §§523 and 527 of the Public Health Service Act of 1912 (42 U.S.C. §§290 dd-3 and
290 ee-3), as amended, relating to confidentiality of alcohol and drug abuse patient records;
(h) Title VIII of the Civil Rights Act of 1968 (42 U.S.C. §§3601 et seq.), as amended,
relating to nondiscrimination in the sale, rental or financing of housing;
(i) Any other nondiscrimination provisions in the specific statute(s) under which
application for Federal assistance is being made; and,
(j) The requirements of any other nondiscrimination statute(s) which may apply to the
application.
g. Will comply, or has already complied, with the requirements of Titles II and III of the
Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (P.L. 91646) which provide for fair and equitable treatment of persons displaced or whose property is
acquired as a result of Federal or federally-assisted programs. These requirements apply to all
6 of 34

interests in real property acquired for project purposes regardless of Federal participation in
purchases.

h. Will comply, as applicable, with provisions of the Hatch Act (5 U.S.C. §§1501-1508 and
7324-7328), which limit the political activities of employees whose principal employment
activities are funded in whole or in part with Federal funds.
i. Will comply, as applicable, with the provisions of the Davis-Bacon Act (40 U.S.C. §§276a to
276a-7), the Copeland Act (40 U.S.C. §276c and 18 U.S.C. §874), and the Contract Work Hours
and Safety Standards Act (40 U.S.C. §§327-333) regarding labor standards for federally-assisted
construction sub agreements.
j. Will comply, if applicable, with flood insurance purchase requirements of Section 102(a) of
the Flood Disaster Protection Act of 1973 (P.L. 93-234) which requires recipients in a special
flood hazard area to participate in the program and to purchase flood insurance if the total cost of
insurable construction and acquisition is $10,000 or more.
k. Will comply with environmental standards which may be prescribed pursuant to the
following:
(a) Institution of environmental quality control measures under the National
Environmental Policy Act of 1969 (P.L. 91-190) and Executive Order (EO) 11514;
(b) Notification of violating facilities pursuant to EO 11738;
(c) Protection of wetlands pursuant to EO 11990;
(d) Evaluation of flood hazards in floodplains in accordance with EO 11988;
(e) Assurance of project consistency with the approved State management program
developed under the Coastal Zone Management Act of 1972 (16 U.S.C. §§1451 et seq.);
(f) Conformity of Federal actions to State (Clean Air) Implementation Plans under Section
176(c) of the Clean Air Act of 1955, as amended (42 U.S.C. §§7401 et seq.);
(g) Protection of underground sources of drinking water under the Safe Drinking Water
Act of 1974, as amended (P.L. 93-523); and,
(h) Protection of endangered species under the Endangered Species Act of 1973, as
amended (P.L. 93- 205).

7 of 34

l. Will comply with the Wild and Scenic Rivers Act of 1968 (16 U.S.C. §§1271 et seq.) related
to protecting components or potential components of the national wild and scenic rivers system.

m. Will assist the Federal Agency in assuring compliance with Section 106 of the National
Historic Preservation Act of 1966, as amended (16 U.S.C. §470), EO 11593 (identification and
protection of historic properties), and the Archaeological and Historic Preservation Act of 1974
(16 U.S.C. §§469a-1 et seq.).
n. Will comply with P.L. 93-348 regarding the protection of human subjects involved in
research, development, and related activities supported by this award of assistance.
o. Will comply with the Laboratory Animal Welfare Act of 1966 (P.L. 89-544, as amended, 7
U.S.C. §§2131 et seq.) pertaining to the care, handling, and treatment of warm blooded animals
held for research, teaching, or other activities supported by this award of assistance.
p. Will comply with the Lead-Based Paint Poisoning Prevention Act (42 U.S.C. §§4801 et seq.)
which prohibits the use of lead-based paint in construction or rehabilitation of residence
structures.
q. Will cause to be performed the required financial and compliance audits in accordance with
the Single Audit Act Amendments of 1996 and OMB Circular No. A-133, "Audits of States,
Local Governments, and Non-Profit Organizations."
r. Will comply with all applicable requirements of all other Federal laws, executive orders,
regulations, and policies governing this program.
s. Will make a good-faith effort to provide and maintain a drug-free environment by prohibiting
illicit drugs in the workplace, providing employees with drug-free policy statements (including
penalties for noncompliance), and establishing necessary awareness programs to keep employees
informed about the availability of counseling, rehabilitation, and related services (§5151-5610 of
the Drug-Free Workplace Act of 1988, as implemented by 7 CFR Part 3017, Subpart F, Section
3017.600, Purpose).
t. Has not used and will not use Federal funds, other than profits from a Federal contract, for
lobbying Congress or any Federal agency in connection with the award or modification of any
8 of 34

contract, grant, cooperative agreement, or loan; will disclose the name, address, payment details,
and purpose of any agreements with lobbyists for whom it or its contractors or grantees have
paid or will pay with profits or non-appropriated funds on or after December 23, 1989, for any
award action in excess of $100,000 (or $150,000 for loans); will file quarterly updates about the
use of lobbyists if material changes occur; and will require its nonexempt contractors or grantees
to certify and disclose accordingly [§319, Pub. L. No. 101-121 (31 U.S.C. 1352), as implemented
by 7 CFR Part 3018].
u. (It) and its principals are not presently debarred, suspended, proposed for debarment, declared
ineligible, or voluntarily excluded from covered transactions by any Federal department or
agency; have not been convicted or indicted under criminal or civil statutes or had one or more
public transactions terminated for cause or default within the past three years; will provide
immediate written notice to the Authorized Departmental Officer if at any time it learns that this
certification was erroneous when made or has become erroneous by reason of changed
circumstances; and will require recipients of lower-tier covered transactions under this grant
award to similarly certify (Executive Order 12549, as implemented by 7 CFR Part 3017, Section
3017.510, Participants’ responsibilities).
4. FEDERAL AGENCY AND PROJECT COORDINATOR RESPONSIBILITIES
The Federal Agency is responsible for:
a. Assisting in defraying not more than one-half of the costs of the project by reimbursing the
grantee for expenses incurred in the conduct of the project as mutually agreed to and outlined in
the approved project budget.
b. Monitoring work performed under the grant by reviewing progress reports, final reports and
documentation relating to grant and matching fund expenditures.
The Grantee Project Coordinator is responsible for:
a. Monitoring the performance of all project activities, ensuring that the work is completed
within the required time frame, maintaining control of the project’s objectives and setting policy
for all aspects of the project.

9 of 34

b. Serving as the contact with the Federal Agency and with subgrantees about all grant and
project matters. Subgrantees should be instructed to communicate directly with the grantee, not
with the FSMIP Staff Officer, on matters relating to the project.
c. Contacting the FSMIP Staff Officer immediately if problems arise that will interfere with or
delay the project.
d. Ensuring that both FSMIP funds and matching funds are used only for activities outlined in
the approved project and work plan. Use of grant and matching funds must conform to the
budget submitted with the application as accepted or as modified by mutual consent when the
proposal was selected for funding. However, it is the Federal Agency’s policy to allow grantees
to shift expenditures from any one cost category or project element to another without obtaining
prior approval, provided that the budget for cost categories or project elements is not increased or
decreased by more than 20 percent of the total FSMIP grant amount.
e. Ensuring that proper accounting procedures are followed for grant and matching funds, both
by the grantee institution and any subgrantees and project partners. Records of receipts and
expenditures of Federal funds, matching funds and in-kind resources must be identifiable within
the grantee’s accounting system.
f. Making available for review by the Federal Agency any records or reports relating to the
project.
g. Making available for review by the Federal Agency any contract or secondary agreement
relating to the project.
h. Submitting progress reports at 6-month intervals, and a final report no later than 90 days after
the grant ending date. The Grantee Project Coordinator must review and approve any documents
prepared by a subgrantee before forwarding them to the FSMIP Staff Officer.
i. Submitting financial reports (SF 270) in a timely manner, and, no later than 90 days after the
grant ending date, submitting a final financial report (SF 425).
j. Requesting grant funds at reasonable intervals, and providing a justification if the initial
drawdown is not made in the first year of the grant period.
10 of 34

k. Seeking written approval from the FSMIP Staff Officer under the following circumstances:
•

Changes in project contact or project leader;

•

Budget changes: Shifts of expenditures from any one cost category or project element to
another if the budget for cost categories or project elements is increased or decreased by
more than 20 percent of the total FSMIP grant amount;

•

Changes or substantive revisions to the scope or objectives of the project;

•

No-cost time extensions;

•

Appropriate use of any program income generated by the project that was not outlined in
the approved proposal; and

•

Foreign travel.

l. Ensuring that all travel expenses follow Federal Travel Regulations (41 CFR Chapters 300304) unless State travel requirements are in place.
m. Understanding that the results of the grant project(s) may be published by the Federal
Agency, the grantee, or by appropriate subcontractors or subgrantees, as mutually agreed. All
publications resulting from the grant should acknowledge the Federal Agency as a cooperator in
the project and bear a statement that credits the grant program such as the following: “State
funds for this project were matched with Federal funds under the Federal-State Marketing
Improvement Program of the Agricultural Marketing Service, U.S. Department of Agriculture.”
A similar acknowledgment is required on other media products of the grant such as audio-visuals
unless the grantee received a waiver from the FSMIP Staff Officer.
n. Ensuring that subgrantees who receive a subgrant of $25,000 or more comply with the
reporting requirements as outlined in Section 14 – Reporting Subawards and Executive
Compensation of this document.
5. PRIOR APPROVAL REQUIREMENTS
Changes in Project Contact or Project Leader. When it is necessary to change the grantee’s
program contact, submit the update via email to the FSMIP Staff Officer. The update should
contain the new individual’s name and contact information, the capacity in which this new
individual will serve, and a brief outline of qualifications if the project leader changes.

11 of 34

Budget Changes. Modifications to the project budget must be approved in writing by the
FSMIP Staff Officer if the cumulative amount of such modifications exceeds 20 percent (20%)
of the total grant amount. A request for a budget change shall include a description of the
change, a justification for the change, and a revised budget spreadsheet.
Revisions of Scope or Objectives. When it is necessary to modify the scope or objectives of the
award, submit a written justification for the change along with a description of the revisions
along with a revised budget spreadsheet, if applicable.
No-cost Time Extensions. The grantee must contact the FSMIP Staff Officer no later than 60
days before the grant ending date to request a no-cost time extension if for any reason the project
cannot be completed within the time frame established in the grant agreement. The grantee must
prepare a letter addressed to the FSMIP Staff Officer that includes the following information:
•

The number of additional months needed and the new ending date.

•

A justification for the request for more time.

•

A summary of progress to date in terms of the project timeline and objectives. The
summary may reference the most recent Progress Report and indicate how circumstances
have changed since then.

•

An estimate of the remaining grant and matching funds.

•

A projected timetable to complete the project.

The letter should be scanned and emailed to the FSMIP Staff Officer, and the original should be
retained in the grantee’s project file.
Program Income. Prior approval is required with regard to any program income generated by
the project that was not approved in the original proposal. Appropriate uses for program income
include: 1) expanding the project or program; 2) continuing the project or program after the grant
or subgrant support ends; 3) supporting other projects or programs that further the broad
objectives of the grant program; or 4) obtaining equipment or other assets needed for the project
or program; or 5) for other activities that further the grant program’s objectives.
Foreign Travel. Prior approval is required for trips taken outside the United States in
connection with a FSMIP project. Before the travel takes place, the grantee should prepare a
12 of 34

letter addressed to the FSMIP Staff Officer that includes the following: 1) travel destination;
2) dates of travel; 3) purpose of travel; 4) names and titles of travelers whose expenses will be
paid in full or in part with FSMIP funds; and 5) an estimate of the amount of FSMIP and
matching funds to be expended on the travel.
6. UNALLOWABLE COSTS
The following costs are unallowable under this award unless otherwise permitted by law or
approved by the Federal Agency:
a. Costs which lie outside the scope of the approved project and any amendments thereto.
b. Costs of advertising and public relations designed solely to promote the governmental unit.
c. Alcoholic beverages except when the costs are associated with implementing a project and
prior approval is given from the Federal Agency.
d. Bad debts, including losses (whether actual or estimated) arising from uncollectable accounts
and other claims, related collection costs, and related legal costs.
e. Capital expenditures for general purpose, including purchases of building(s); construction,
repair, or rehabilitation of building(s); and land acquisition.
f. Costs associated with capital expenditures for special purpose equipment with a unit cost of
$5,000 or more without prior approval from the Federal Agency. Special purpose equipment
listed in the approved project budget is considered approved by the Federal Agency. “Special
purpose equipment” means equipment which is used only for research, medical, scientific, or
other technical activities. Examples of special purpose equipment include microscopes, x-ray
machines surgical instruments and spectrometers.
g. Contributions to a contingency reserve or any similar provision (rainy day funds) made for
events the occurrence which cannot be foretold with certainty as to time, intensity, or with
assurance of their happening.

13 of 34

h. Donated or volunteer services may be furnished to a grantee by professional and technical
personnel, consultants, and other skilled and unskilled labor. The value of these services is not
reimbursable either as a direct or indirect cost.
i. Contributions or donations, including cash, property, and services, made by the grantee,
regardless of the recipient.
j. Entertainment costs including amusement, diversion, and social activities, and any costs
directly associated with such costs (such as tickets to shows or sports events, meals, lodging,
rentals, transportation, and gratuities) regardless of their apparent relationship to project
objectives.
k. Airfare costs in excess of the customary standard commercial airfare (coach or equivalent),
Federal Government contract airfare, State Government contract airfare if applicable, or the
lowest commercial discount airfare.
l. Fines, penalties, damages, and other settlements resulting from violations (or alleged
violations) of, or failure of the State or local governmental unit to comply with, Federal, State,
local, or Indian tribal laws and regulations.
m. Organized fund raising, including financial campaigns, solicitation of gifts and bequests, and
similar expenses incurred to raise capital or obtain contributions regardless of the purpose for
which the funds will be used.
n. General costs of State or local government including:
(1) Salaries and expenses of the Office of the Governor of a State or the chief executive of
a political subdivision or the chief executive of federally-recognized Indian tribal
government;

(2) Salaries and other expenses of a State legislature, tribal council, or similar local
governmental body, such as a county supervisor, city council, school board, etc., whether
incurred for purposes of legislation or executive direction;

(3) Costs of the judiciary branch of a government;
14 of 34

(4) Costs of prosecutorial activities; and

(5) Costs of other general types of government services normally provided to the general
public, such as fire and police.

o. Costs of goods or services for personal use do the governmental unit’s employees regardless
of whether the cost is reported as taxable income to the employees.
p. Costs of investment counsel and staff and similar expenses incurred to enhance income from
investments.
q. Development or participation in lobbying activities including costs of membership in
organizations substantially engaged in lobbying.
r. Development or participation in political activities in accordance with provisions of the Hatch
Act (5 U.S.C. 1501-1508 and 7324-7326).
s. Costs that are incurred after the grant ending date.
This list is not all-inclusive. Questions regarding allowability of particular cost items should be
directed to the FSMIP Staff Officer.
7. FINANCIAL MANAGEMENT STANDARDS
1. General Provisions. Grantees must comply with the following:
a. The grantee must expend and account for grant funds in accordance with State laws and
procedures for expending and accounting for its own funds, and meet the requirements of 7 CFR
Part 3016.20 or 7 CFR Part 3019.21.
b. Grant and subgrant records shall provide for complete accurate and current disclosure of
financial results.
c. The source and application of funds shall be readily identified by the continuous maintenance
of updated records. Records, as such, shall contain information pertaining to grant or subgrant
15 of 34

awards, authorizations, obligations, unobligated balances, assets, outlays, and income. When the
recipient is a governmental entity, the records shall also contain liabilities.
d. Effective control over and accountability for all grant or subgrant funds and real and personal
property assets shall be maintained. Grantees and subgrantees shall adequately safeguard all
such property and shall ensure that it is used solely for authorized purposes. In cases where
projects are not 100 percent Federally funded, grantees and subgrantees must have effective
internal controls to assure that expenditures financed with Federal funds are properly chargeable
to the grant supported project.
e. The actual and budgeted amounts for each grant or subgrant shall be compared. Financial
information shall be related to performance and unit cost data. Estimates based on available
documentation may be accepted for unit cost data.
f. There shall be specific procedures established for minimizing the time elapsing between the
transfer of funds from the Federal Agency and disbursement by grantees and subgrantees.
g. Established procedures shall be used for determining the reasonableness, allowability, and
allocability of costs in accordance with the cost principles prescribed by Section A.2. of this part
and the provisions of this grant award.
h. Accounting records shall be supported by source documentation. These documentations
include, but are not limited to, cancelled checks, paid bills, payrolls, contract, and subgrant
award documents.
i. A systematic method shall be employed by each recipient to assure timely and appropriate
resolution of audit findings and recommendations.
8. MATCHING REQUIREMENT
FSMIP grants must be matched one-to-one with non-Federal resources. Documentation of
matching funds must be in compliance with the applicable Federal administrative provisions
listed in Article 1.a. of these General Terms and Conditions. Allowable match costs shall be
determined by the Federal cost principles listed in Article 1.b. of these General Terms and
Conditions. The match may consist of cash and/or properly valued in-kind resources. State
16 of 34

appropriations, as well as funds or other resources contributed by farm organizations, trade
associations and other project participants, can be used to satisfy the matching fund requirement.
In-kind matching contributions must be properly documented. This documentation does not have
to be provided to the Federal Agency but it must be retained in the grantee’s project file and
made available upon request to the Federal Agency.
Documentation of personnel time contributed to the project may include the following:
(1) If the contribution is valued based on a rate per day or hours worked, include the rate
and the dates and/or hours worked;
(2) If the contribution is based on a rate per unit of service provided, such as the number of
producers receiving one-on-one technical assistance, include the rate, the number of units
of service provided, and the beginning and ending dates of the overall period of service; or
(3) If the fee is determined on some other basis, include the basis for determining the fee
and the beginning and ending dates of the period in which services were provided.

If the matching contribution is in a form other than personnel time, consult the FSMIP Staff
Officer about how to properly document the contribution. Program income cannot be offered as
a match.
Relevant regulations are at 7 CFR Part 3015, Subpart G—Cost-Sharing or Matching and 7 CFR
Part 3016, Subpart C—Post-Award Requirements, or 7 CFR 3019 Subpart C—Post-Award
Requirements.
9. PROCUREMENT
Procurement Policy. The grantee’s procurement policies and procedures shall meet the
standards specified in 7 CFR 3016.36 or 7 CFR 3019.40 through 3019.48.
a. The grantee shall maintain written standards of conduct that prohibit its officers, employees,
agents, or others engaged in awarding and administering contracts supported by Federal funds
from using their positions for any purpose that is, or gives the appearance of being, motivated by
a desire for private financial gain for themselves or others with whom they have close ties.

17 of 34

These standards must include provisions that govern the conduct of the grantee's employees in
connection with procurement activities. Such standards should reflect State and local laws and
must cover financial interests, gifts, bribes, gratuities, favors, and related areas as appropriate and
necessary. In addition, they must identify the conditions under which outside activities or
interests are proper or improper, provide for prompt notification of violations to a responsible
and objective institutional official, and make provision for disciplinary action against those who
violate the standards.
b. A copy of these written standards does not have to be submitted to the Federal Agency for
approval or recordkeeping purposes; however, they must be made available for review by the
Federal Agency or its designated representatives, if requested.
c. All procurement transactions, regardless of whether by sealed bids or by negotiation, and
without regard to dollar value, shall be conducted in a manner that provides maximum open and
free competition.
Contractor Records. Grantees shall include a provision for access to the contractor's records by
the grantee and the Federal Agency. The provision must require the contractor to place the same
provision in any subcontract which would have to have the provision were it awarded by the
grantee. The provision must require retention of records for three years after final payment is
made under the contract or subcontract and all pending matters are closed. The provision must
also require that, if any audit, litigation, or other action involving the records is started before the
end of the three year period, the records must be retained until all issues arising out of the action
are resolved or until the end of the three year period, whichever is later.
a. In contracts and subcontracts under a subgrant, the provision must require that access to the
records be provided to the grantee as well as the subgrantee and the Federal Agency.
b. In contracts in excess of $10,000, a provision requiring compliance with Executive Order
11246, concerning equal employment opportunity as amended by Executive Order 11375, and as
supplemented in Department of Labor regulations (41 CFR Chapter 60) is required.

18 of 34

10. CONSULTANTS
Charges for consulting payments must be supported in the records of the grantee or cost-type
contractor by an invoice from the consultant and a copy of the written report (if a report is
appropriate) or other documented evidence of the work performed from the consultant.
If any of the following information is not shown on the invoice and/or report from the consultant,
the information must be shown in a memorandum or other document prepared by the recipient or
contractor for its files, or noted in handwriting on the consultant's invoice by the recipient or
contractor. The memorandum, other document, or handwritten notation must be signed by an
official of the recipient or contractor and show:
a. The name of the consultant;
b. The nature of the services provided (such as statistical analysis of data, participation on project
advisory committee, etc.);
c. The relevance of the services to the project or program, if not apparent from the nature of the
services; and
d. Whichever of the following is applicable:
(1) (If the fee was based on a rate per day or hours worked) the rate and the dates and/or
hours worked;
(2) (If the fee was based on a rate per unit of service provided, such as the number of
producers receiving one-on-one technical assistance) the rate, the number of units of
service provided, and the beginning and ending dates of the overall period of service; or
(3) (If the fee was determined on some other basis) the basis for determining the fee and
the beginning and ending dates of the period in which services were provided.
If the consultant services were in a form other than personnel time, consult the FSMIP Staff
Officer about how to properly document the services.

19 of 34

11.

SUBAWARDS

Grantees must:
a. Not make any award or permit any award (subgrant or contract) at any tier to any party which
is debarred or suspended or is otherwise excluded from or ineligible for participation in Federal
Assistance program under Executive Order 12549, “Debarment and Suspension.”
b. Ensure that every subgrant includes any clauses required by Federal statute and executive
orders and their implementing regulations.
c. Ensure that subgrantees are aware of requirements imposed upon them by Federal statutes and
regulations.
d. Ensure that a provision for compliance with §3016.42 “Retention and access requirements for
records” or 7 CFR 3019.53 “Retention and access requirements for records” is placed in every
cost reimbursement subgrant.
e. Conform any advances of grant funds to subgrantees substantially to the same standards of
timing and amount that apply to cash advances by Federal agencies.
12.

TRAFFICKING IN PERSONS

a. Provisions applicable to a recipient that is a private entity.
1. You as the recipient, your employees, subrecipients under this award, and subrecipients'
employees may not—
i. Engage in severe forms of trafficking in persons during the period of time that the award is in
effect;
ii. Procure a commercial sex act during the period of time that the award is in effect; or
iii. Use forced labor in the performance of the award or subawards under the award.
2. We as the Federal awarding agency may unilaterally terminate this award, without penalty, if
you or a subrecipient that is a private entity —
i. Is determined to have violated a prohibition in paragraph a.1 of this award term; or

20 of 34

ii. Has an employee who is determined by the agency official authorized to terminate the award
to have violated a prohibition in paragraph a.1 of this award term through conduct that is
either—
A. Associated with performance under this award; or
B. Imputed to you or the subrecipient using the standards and due process for imputing the
conduct of an individual to an organization that are provided in 2 CFR part 180, “OMB
Guidelines to Agencies on Governmentwide Debarment and Suspension (Nonprocurement),” as
implemented by our agency at 7 CFR part 3017.
b. Provision applicable to a recipient other than a private entity . We as the Federal awarding
agency may unilaterally terminate this award, without penalty, if a subrecipient that is a private
entity—
1. Is determined to have violated an applicable prohibition in paragraph a.1 of this award term; or
2. Has an employee who is determined by the agency official authorized to terminate the award
to have violated an applicable prohibition in paragraph a.1 of this award term through conduct
that is either—
i. Associated with performance under this award; or
ii. Imputed to the subrecipient using the standards and due process for imputing the conduct of
an individual to an organization that are provided in 2 CFR part 180, “OMB Guidelines to
Agencies on Governmentwide Debarment and Suspension (Nonprocurement),” as implemented
by our agency at 7 CFR part 3017.
c. Provisions applicable to any recipient.
1. You must inform us immediately of any information you receive from any source alleging a
violation of a prohibition in paragraph a.1 of this award term.
2. Our right to terminate unilaterally that is described in paragraph a.2 or b of this section:

21 of 34

i. Implements section 106(g) of the Trafficking Victims Protection Act of 2000 (TVPA), as
amended (22 U.S.C. 7104(g)), and
ii. Is in addition to all other remedies for noncompliance that are available to us under this award.
3. You must include the requirements of paragraph a.1 of this award term in any subaward you
make to a private entity.
d. Definitions . For purposes of this award term:
1. “Employee” means either:
i. An individual employed by you or a subrecipient who is engaged in the performance of the
project or program under this award; or
ii. Another person engaged in the performance of the project or program under this award and
not compensated by you including, but not limited to, a volunteer or individual whose services
are contributed by a third party as an in-kind contribution toward cost sharing or matching
requirements.
2. “Forced labor” means labor obtained by any of the following methods: the recruitment,
harboring, transportation, provision, or obtaining of a person for labor or services, through the
use of force, fraud, or coercion for the purpose of subjection to involuntary servitude, peonage,
debt bondage, or slavery.
3. “Private entity”:
i. Means any entity other than a State, local government, Indian tribe, or foreign public entity, as
those terms are defined in 2 CFR 175.25.
ii. Includes:
A. A nonprofit organization, including any nonprofit institution of higher education, hospital, or
tribal organization other than one included in the definition of Indian tribe at 2 CFR 175.25(b).

22 of 34

B. A for-profit organization.
4. “Severe forms of trafficking in persons,” “commercial sex act,” and “coercion” have the
meanings given at section 103 of the TVPA, as amended (22 U.S.C. 7102).
13.

SYSTEM FOR AWARD MANAGEMENT AND UNIVERSAL IDENTIFIER
REQUIREMENTS

A. Requirement for System for Award Management (SAM)
Unless you are exempted from this requirement under 2 CFR 25.110, you as the recipient must
maintain the currency of your information in the SAM until you submit the final financial report
required under this award or receive the final payment, whichever is later. This requires that you
review and update the information at least annually after the initial registration, and more
frequently if required by changes in your information or another award term.
B. Requirement for Data Universal Numbering System (DUNS) Numbers
If you are authorized to make subawards under this award, you:
1. Must notify potential subrecipients that no entity ( see definition in paragraph C of this award
term) may receive a subaward from you unless the entity has provided its DUNS number to you.
2. May not make a subaward to an entity unless the entity has provided its DUNS number to you.
C. Definitions
For purposes of this award term:
1. System for Award Management (SAM) means the Federal repository into which an entity
must provide information required for the conduct of business as a recipient. Additional
information about registration procedures may be found at the SAM Internet site (currently at
https://www.sam.gov/portal/public/SAM/ ).
2. Data Universal Numbering System (DUNS) number means the nine-digit number established
and assigned by Dun and Bradstreet, Inc. (D&B) to uniquely identify business entities. A DUNS
23 of 34

number may be obtained from D&B by telephone (currently 866–705–5711) or the Internet
(currently at http://fedgov.dnb.com/webform ).
3. Entity, as it is used in this award term, means all of the following, as defined at 2 CFR part 25,
subpart C:
a. A Governmental organization, which is a State, local government, or Indian Tribe;
b. A foreign public entity;
c. A domestic or foreign nonprofit organization;
d. A domestic or foreign for-profit organization; and
e. A Federal agency, but only as a subrecipient under an award or subaward to a non-Federal
entity.
4. Subaward:
a. This term means a legal instrument to provide support for the performance of any portion of
the substantive project or program for which you received this award and that you as the
recipient award to an eligible subrecipient.
b. The term does not include your procurement of property and services needed to carry out the
project or program (for further explanation, see Sec. __.210 of the attachment to OMB Circular
A–133, “Audits of States, Local Governments, and Non-Profit Organizations”).
c. A subaward may be provided through any legal agreement, including an agreement that you
consider a contract.
5. Subrecipient means an entity that:
a. Receives a subaward from you under this award; and
b. Is accountable to you for the use of the Federal funds provided by the subaward.

24 of 34

14.

REPORTING SUBAWARDS AND EXECUTIVE

a. Reporting of first-tier subawards.
1. Applicability. Unless you are exempt as provided in paragraph d. of this award term, you must
report each action that obligates $25,000 or more in Federal funds that does not include
Recovery funds (as defined in section 1512(a)(2) of the American Recovery and Reinvestment
Act of 2009, Pub. L. 111–5) for a subaward to an entity (see definitions in paragraph e. of this
award term).
2. Where and when to report.
i. You must report each obligating action described in paragraph a.1. of this award term to
http://www.fsrs.gov .
ii. For subaward information, report no later than the end of the month following the month in
which the obligation was made. (For example, if the obligation was made on November 7, 2011,
the obligation must be reported by no later than December 31, 2011.)
3. What to report. You must report the information about each obligating action that the
submission instructions posted at http://www.fsrs.gov .
b. Reporting Total Compensation of Recipient Executives.
1. Applicability and what to report. You must report total compensation for each of your five
most highly compensated executives for the preceding completed fiscal year, if—
i. the total Federal funding authorized to date under this award is $25,000 or more;
ii. in the preceding fiscal year, you received—
(A) 80 percent or more of your annual gross revenues from Federal procurement contracts (and
subcontracts) and Federal financial assistance subject to the Transparency Act, as defined at 2
CFR 170.320 (and subawards); and

25 of 34

(B) $25,000,000 or more in annual gross revenues from Federal procurement contracts (and
subcontracts) and Federal financial assistance subject to the Transparency Act, as defined at 2
CFR 170.320 (and subawards); and
iii. The public does not have access to information about the compensation of the executives
through periodic reports filed under section 13(a) or 15(d) of the Securities Exchange Act of
1934 (15 U.S.C. 78m(a), 78o(d)) or section 6104 of the Internal Revenue Code of 1986. (To
determine if the public has access to the compensation information, see the U.S. Security and
Exchange Commission total compensation filings at http://www.sec.gov/answers/execomp.htm.)
2. Where and when to report. You must report executive total compensation described in
paragraph b.1. of this award term:
i. As part of your registration profile at https://www.sam.gov/portal/public/SAM/ .
ii. By the end of the month following the month in which this award is made, and annually
thereafter.
c. Reporting of Total Compensation of Subrecipient Executives.
1. Applicability and what to report. Unless you are exempt as provided in paragraph d. of this
award term, for each first-tier subrecipient under this award, you shall report the names and total
compensation of each of the subrecipient's five most highly compensated executives for the
subrecipient's preceding completed fiscal year, if—
i. in the subrecipient's preceding fiscal year, the subrecipient received—
(A) 80 percent or more of its annual gross revenues from Federal procurement contracts (and
subcontracts) and Federal financial assistance subject to the Transparency Act, as defined at 2
CFR 170.320 (and subawards); and
(B) $25,000,000 or more in annual gross revenues from Federal procurement contracts (and
subcontracts), and Federal financial assistance subject to the Transparency Act (and subawards);
and
26 of 34

ii. The public does not have access to information about the compensation of the executives
through periodic reports filed under section 13(a) or 15(d) of the Securities Exchange Act of
1934 (15 U.S.C. 78m(a), 78o(d)) or section 6104 of the Internal Revenue Code of 1986. (To
determine if the public has access to the compensation information, see the U.S. Security and
Exchange Commission total compensation filings at http://www.sec.gov/answers/execomp.htm ).
2. Where and when to report. You must report subrecipient executive total compensation
described in paragraph c.1. of this award term:
i. To the recipient.
ii. By the end of the month following the month during which you make the subaward. For
example, if a subaward is obligated on any date during the month of October of a given year (i.e.,
between October 1 and 31), you must report any required compensation information of the
subrecipient by November 30 of that year.
d. Exemptions
If, in the previous tax year, you had gross income, from all sources, under $300,000, you are
exempt from the requirements to report:
i. Subawards, and
ii. The total compensation of the five most highly compensated executives of any subrecipient.
e. Definitions. For purposes of this award term:
1. Entity means all of the following, as defined in 2 CFR part 25:
i. A Governmental organization, which is a State, local government, or Indian tribe;
ii. A foreign public entity;
iii. A domestic or foreign nonprofit organization;

27 of 34

iv. A domestic or foreign for-profit organization;
v. A Federal agency, but only as a subrecipient under an award or subaward to a non-Federal
entity.
2. Executive means officers, managing partners, or any other employees in management
positions.
3. Subaward:
i. This term means a legal instrument to provide support for the performance of any portion of
the substantive project or program for which you received this award and that you as the
recipient award to an eligible subrecipient.
ii. The term does not include your procurement of property and services needed to carry out the
project or program (for further explanation, see Sec. __ .210 of the attachment to OMB Circular
A–133, “Audits of States, Local Governments, and Non-Profit Organizations”).
iii. A subaward may be provided through any legal agreement, including an agreement that you
or a subrecipient considers a contract.
4. Subrecipient means an entity that:
i. Receives a subaward from you (the recipient) under this award; and
ii. Is accountable to you for the use of the Federal funds provided by the subaward.
5. Total compensation means the cash and noncash dollar value earned by the executive during
the recipient's or subrecipient's preceding fiscal year and includes the following (for more
information see 17 CFR 229.402(c)(2)):
i. Salary and bonus.
ii. Awards of stock, stock options, and stock appreciation rights. Use the dollar amount
recognized for financial statement reporting purposes with respect to the fiscal year in
28 of 34

accordance with the Statement of Financial Accounting Standards No. 123 (Revised 2004) (FAS
123R), Shared Based Payments.
iii. Earnings for services under non-equity incentive plans. This does not include group life,
health, hospitalization or medical reimbursement plans that do not discriminate in favor of
executives, and are available generally to all salaried employees.
iv. Change in pension value. This is the change in present value of defined benefit and actuarial
pension plans.
v. Above-market earnings on deferred compensation which is not tax-qualified.
vi. Other compensation, if the aggregate value of all such other compensation (e.g. severance,
termination payments, value of life insurance paid on behalf of the employee, perquisites or
property) for the executive exceeds $10,000.
15. LIMIT OF FEDERAL LIABILITY
The maximum liability of the Federal Agency to the grantee is the amount indicated in the award
as obligated by the Federal Agency. Nothing in this document or other requirements of this
award requires the Federal Agency to make additional award of funds or limits its discretion with
respect to the amount of funding to be provided for the same or any other purpose. In the event
that an erroneous amount is stated in the award, the approved budget, or any supporting
documentation, the Federal Agency shall have the unilateral right to make corrections and make
appropriate adjustments in the Federal Agency share of the award to align with the Federal
amount authorized.
16. PAYMENTS.
It is the responsibility of grantee Project Coordinators (not subgrantees) to prepare, sign and
submit requests for payment and financial status reports to the FSMIP Staff Officer. If third
parties contribute matching resources, it is the grantee’s responsibility to obtain from them the
necessary financial data to complete requests for payment and financial status reports. Copies of
the appropriate forms are available at: www.whitehouse.gov/omb/grants/grants_forms.html.

29 of 34

Requests for Payment – SF 270
Grant funds must be requested using standard form (SF) 270. Grant funds will be paid
electronically to the bank account specified by the grantee. In addition to the request for grant
funds, the SF 270 should indicate the value of any matching funds expended on the project for
the period covered by the payment request. The SF 270 should be scanned and emailed to the
FSMIP Staff Officer, and the original form should be retained in the grantee’s project file. Grant
funds should be requested at reasonable intervals during the project. The Federal Agency will
require a justification in any case where the initial drawdown of grant funds is not made in the
first year of the grant period, and at reasonable intervals thereafter.
Advances of grant funds are limited to the minimum amount needed to meet current
disbursement needs and should be scheduled so the funds are available to the recipient as close
as possible to the actual disbursements by the grantee for program costs.
Requests for payment should be scheduled so that grant funds are obligated no later than the
grant ending date, and disbursed no later than 90 days after the grant ending date. Grant funds
already paid to the grantee, but not used, must be refunded to the Federal Agency immediately.
Contact the FSMIP Staff Officer to obtain instructions for handling the refund. Late payments
are subject to an interest charge of 18 percent per annum and all penalties and administrative
charges as provided under the Debt Collection Act of 1996.
Federal Financial Report – SF 425
A final SF 425 Federal Financial Report is required not later than 90 days after the grant ending
date. The final SF 425 should reflect the cumulative financial activity, including both grant and
matching funds, over the entire grant period. The SF 425 should be scanned and emailed to the
FSMIP Staff Officer. The original form should be retained in the grantee’s project file.
17. PERFORMANCE REPORTING
Progress Reports are due at six month intervals. A Final Report is required no later than 90 days
after the grant expiration date. If the grant period is one year or less, then only one Progress
Report and a Final Report are required. If the grantee does not prepare the Progress Report(s) or
Final Report, it is nevertheless the grantee Project Coordinator’s responsibility to review and
30 of 34

approve any reports prepared by a third party before forwarding them to the FSMIP Staff
Officer.
Progress Reports
Progress Reports are required at the midpoint of projects approved for one year and at six-month
intervals for projects of longer duration. Progress Reports should:
•

Briefly summarize activities performed and milestones achieved for each objective or
sub-element of the narrative.

•

Note unexpected delays or impediments as well as favorable or unusual
developments.

•

Outline work to be performed during the succeeding period.

•

Comment on the level of grant funds and matching contributions expended to date on
the project.

Final Report
A Final Report of results and accomplishments is due no later than 90 days after the grant ending
date. Final Reports are required to fulfill the terms of the grant agreement, and they also
represent an important vehicle for sharing research findings with Federal and State agencies and
the public. The Final Report will be posted on the FSMIP website. It must include:
•

An outline of the issue or problem. Provide enough background information for the
reader to understand the importance of the project. This section may draw from the
background and justification contained in the approved project proposal.

•

A description of how the issue or problem was approached via the project. Reference the
project objectives and work plan.

•

A description of the contribution of public or private agency cooperators and partners.

•

A summary of results, conclusions, and lessons learned. Lessons learned should cover
both positive and negative aspects. Include a discussion of how the project was evaluated

31 of 34

and whether or not project objectives were met. To the extent possible, include
measurable results.
•

A discussion of current or future benefits to be derived from the project.

•

Recommendations for future research and, if applicable, an outline of next steps or
additional research that might advance the project goals.

•

A description of the project beneficiaries including the number, type and scale of
producers, processors, and other businesses.

•

Additional information generated by the grant project such as publications, presentations,
and websites.

•

A contact person for the project with telephone number and email address.

Sometimes, a project will result in a large study completed by a third party. If the Final Report
completed by a third party does not address the points listed above, the grantee Project
Coordinator is responsible for providing a document that discusses each of those points. An
electronic version of the Final Report and all supporting documents should be e-mailed or sent to
the FSMIP Staff Officer via express mail on diskette or CD.
All publications resulting from the grant should acknowledge the Federal Agency as a cooperator
in the project and bear a statement that credits the grant program such as the following: “State
funds for this project were matched with Federal funds under the Federal-State Marketing
Improvement Program of the Agricultural Marketing Service, U.S. Department of Agriculture.”
A similar acknowledgment is required on other media products of the grant such as audio-visuals
unless the grantee Project Coordinator receives a waiver from the FSMIP Staff Officer.
18. SITE VISITS AND PROJECT RECORDS
Work performed under this grant is subject to inspection and evaluation at all times by Federal
Agency officials, or by any of their duly authorized representatives through such mechanisms as

32 of 34

the review of performance reports and site visits. To the extent possible, all site visits will be
made at mutually acceptable intervals and will be timed to avoid disruption to the construction
work and to grantee programs and personnel.
The Federal Agency and the Comptroller General of the United States, or any of their duly
authorized representatives, shall have the right of access to any books, documents, papers, or
other project-related records of the grantee and its contractors under this grant for examination
and audit purposes and to obtain excerpts and transcripts.
Financial records, supporting documents, statistical records, and other records pertinent to this
grant award shall be retained by the grantee and its contractors for a period of three years after
submission and acceptance of the final SF 425, “Federal Financial Report.” Records relating to
audits, appeals, litigation, or the settlement of claims arising out of project performance shall be
retained until such audits, appeals, litigation, or claims have been settled.
19. FRAUD, WASTE OR ABUSE. Anyone who becomes aware of the existence (or apparent
existence) of fraud, waste, or abuse related to FSMIP grants or use of grant funds should report
this information to USDA. The USDA Office of the Inspector General (OIG) provides several
means, including toll-free numbers, for this purpose. The OIG hotline may be reached by:
Office of the Inspector General, United States Department of Agriculture,
Attn: HOTLINE
PO Box 23399
Washington, DC 20026-3399
Telephone:

1-800-424-9121 (toll free) or 202-690-1202 (TDD);

Fax:

202-690-2474

E-mail:

[email protected]

Internet:

http://www.usda.gov/oig/hotline.htm

Fraud, waste, and abuse includes, but is not limited to, embezzlement, misuse, or
misappropriation of grant funds or property, and false statements, whether by organizations or
individuals. Examples are theft of grant funds for personal use; using funds for non-grant-related
purposes; theft of federally owned property or property acquired or leased under a grant;
charging inflated building rental fees for a building owned by the recipient; submitting false
33 of 34

financial reports; and submitting false financial data in bids submitted to the recipient (for
eventual payment under the grant). Callers are not required to give their names and, if they do,
their identities are kept confidential.
The Federal government may pursue administrative, civil, or criminal action under a variety of
statutes that relate to fraud and false statements or claims. Even if a grant is not awarded, the
applicant may be subject to penalties if the information contained in or submitted as part of an
application, including its certifications and assurances, is found to be false, fictitious, or
fraudulent.
20. SUSPENSION/TERMINATION
If the Federal Agency, after reasonable notice to a grantee, finds that there has been a failure by
the grantee to comply substantially with any provision of this award, or other applicable laws or
regulations the Federal Agency may disqualify the grantee, for one or more years, from receiving
future grants under FSMIP.
21. RECORD RETENTION AND CLOSEOUT
Record Retention. In accordance with Federal regulations, grantees and subgrantees must
retain all records relating to the grant for a period of 3 years from the date of the final SF 425
financial status report that is submitted to the Federal Agency.
Closeout Checklist. Before the grant can be closed, the following must be submitted to the
Federal Agency no later than 90 days after the grant ending date:
1) Final Report
2) Final financial statement (SF 425)
3) Outstanding requests for payment, if applicable (SF 270)
4) Refund check of any unused grant funds previously paid in advance, if applicable.

34 of 34