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44 CFR Ch. I (10–1–11 Edition)
higher rate of pay is justified and necessary. Such a determination will be
reviewed annually by the Administrator.
(b) Advisory committee staff. The pay
of each member of the staff of an advisory committee shall be fixed at a rate
of the general salary schedule in which
the staff member’s position would be
appropriately compensated for in the
FEMA evaluation system applicable to
the position. Pay of the member of the
staff of an advisory committee shall
not be fixed at a rate higher than the
daily equivalent of the maximum rate
for a GS–15 unless the Director or his
designee has determined that, under its
evaluation system, the staff member’s
position would appropriately be placed
in the General Salary Schedule at a
grade higher than GS–15. Such a determination will be reviewed by the Administrator annually.
(c) Consultants. The rate of pay of a
consultant to an advisory committee
shall not exceed the maximum rate of
pay which FEMA may pay experts and
consultants under 5 U.S.C. 3109. Consideration shall be given to the qualifications required of the consultant and
the significance, scope, and technical
complexity of the work in fixing the
rate of pay for the consultants.
(d) Voluntary services. The provisions
of this section shall not prevent FEMA
from accepting the voluntary services
of a member of an advisory committee,
or a member of the staff of an advisory
committee, provided that FEMA has
the authority to accept such services
without compensation.
(e) Reimbursable travel expenses. The
members of an advisory committee and
the staff thereof, while engaged in the
performance of their duties away from
their home or regular places of business, may be allowed travel expenses,
including per diem and in lieu of
subsistences, as authorized by 5 U.S.C.
5703 for persons employed intermittently in the government service.
§ 12.19 Fiscal and administrative responsibilities.
(a) The Chief Financial Officer, shall
keep such records as will fully disclose
the disposition of any funds which may
be at the disposal of any FEMA advisory committee.
(b) The FEMA Advisory Committee
management officer or designee shall
keep such records as are necessary to
fully disclose the nature and extent of
the activities of the FEMA advisory
committees.
(c) Support services shall be provided
by FEMA for each advisory committee
established by or reporting to it, unless
the establishing authority provides
otherwise. Where such advisory committee reports to more than one agency, only one agency or component
thereof shall be responsible for support
services at any one time, and the establishing authority shall designate
the agency responsible for providing
such services.
[45 FR 64180, Sept. 29, 1980, as amended at 48
FR 44543, Sept. 29, 1983]
PART 13—UNIFORM ADMINISTRATIVE REQUIREMENTS FOR GRANTS
AND
COOPERATIVE
AGREEMENTS TO STATE AND LOCAL
GOVERNMENTS
Subpart A—General
Sec.
13.1
13.2
13.3
13.4
13.5
13.6
Purpose and scope of this part.
Scope of subpart.
Definitions.
Applicability.
Effect on other issuances.
Additions and exceptions.
Subpart B—Pre-Award Requirements
13.10 Forms for applying for grants.
13.11 State plans.
13.12 Special grant or subgrant conditions
for ‘‘high-risk’’ grantees.
Subpart C—Post-Award Requirements
FINANCIAL ADMINISTRATION
13.20 Standards for financial management
systems.
13.21 Payment.
13.22 Allowable costs.
13.23 Period of availability of funds.
13.24 Matching or cost sharing.
13.25 Program income.
13.26 Non-Federal audit.
CHANGES, PROPERTY, AND SUBAWARDS
13.30
13.31
13.32
13.33
13.34
Changes.
Real property.
Equipment.
Supplies.
Copyrights.
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Federal Emergency Management Agency, DHS
13.35 Subawards to debarred and suspended
parties.
13.36 Procurement.
13.37 Subgrants.
REPORTS, RECORDS RETENTION, AND
ENFORCEMENT
13.40 Monitoring and reporting program
performance.
13.41 Financial reporting.
13.42 Retention and access requirements for
records.
13.43 Enforcement.
13.44 Termination for convenience.
Subpart D—After-the-Grant Requirements
13.50
13.51
13.52
Closeout.
Later disallowances and adjustments.
Collection of amounts due.
Subpart E—Entitlement [Reserved]
AUTHORITY: Reorganization Plan No. 3 of
1978; 43 FR 41943, 3 CFR, 1978 Comp., p. 329;
E.O. 12148, 44 FR 43239, 3 CFR, 1979 Comp., p.
412.
SOURCE: 53 FR 8078, 8087, Mar. 11, 1988, unless otherwise noted.
EDITORIAL NOTE: For additional information, see related documents published at 49
FR 24958, June 18, 1984; 52 FR 20178, May 29,
1987; and 53 FR 8028, Mar. 11, 1988.
Subpart A—General
§ 13.1
Purpose and scope of this part.
This part establishes uniform administrative rules for Federal grants and
cooperative agreements and subawards
to State, local and Indian tribal governments.
§ 13.2
Scope of subpart.
This subpart contains general rules
pertaining to this part and procedures
for control of exceptions from this
part.
§ 13.3
Definitions.
As used in this part:
Accrued
expenditures
mean
the
charges incurred by the grantee during
a given period requiring the provision
of funds for:
(1) Goods and other tangible property
received;
(2) Services performed by employees,
contractors, subgrantees, subcontractors, and other payees; and
§ 13.3
(3) Other amounts becoming owed
under programs for which no current
services or performance is required,
such as annuities, insurance claims,
and other benefit payments.
Accrued income means the sum of: (1)
Earnings during a given period from
services performed by the grantee and
goods and other tangible property delivered to purchasers, and (2) amounts
becoming owed to the grantee for
which no current services or performance is required by the grantee.
Acquisition cost of an item of purchased equipment means the net invoice unit price of the property including the cost of modifications, attachments, accessories, or auxiliary apparatus necessary to make the property
usable for the purpose for which it was
acquired. Other charges such as the
cost of installation, transportation,
taxes, duty or protective in-transit insurance, shall be included or excluded
from the unit acquisition cost in accordance with the grantee’s regular accounting practices.
Administrative requirements mean
those matters common to grants in
general, such as financial management,
kinds and frequency of reports, and retention of records. These are distinguished from ‘‘programmatic’’ requirements, which concern matters that can
be treated only on a program-by-program or grant-by-grant basis, such as
kinds of activities that can be supported by grants under a particular
program.
Awarding agency means (1) with respect to a grant, the Federal agency,
and (2) with respect to a subgrant, the
party that awarded the subgrant.
Cash contributions means the grantee’s cash outlay, including the outlay
of money contributed to the grantee or
subgrantee by other public agencies
and institutions, and private organizations and individuals. When authorized
by Federal legislation, Federal funds
received from other assistance agreements may be considered as grantee or
subgrantee cash contributions.
Contract means (except as used in the
definitions for grant and subgrant in
this section and except where qualified
by Federal) a procurement contract
under a grant or subgrant, and means a
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§ 13.3
44 CFR Ch. I (10–1–11 Edition)
procurement subcontract under a contract.
Cost sharing or matching means the
value of the third party in-kind contributions and the portion of the costs
of a federally assisted project or program not borne by the Federal Government.
Cost-type contract means a contract or
subcontract under a grant in which the
contractor or subcontractor is paid on
the basis of the costs it incurs, with or
without a fee.
Equipment means tangible, nonexpendable, personal property having a
useful life of more than one year and
an acquisition cost of $5,000 or more
per unit. A grantee may use its own
definition of equipment provided that
such definition would at least include
all equipment defined above.
Expenditure report means: (1) For nonconstruction grants, the SF–269 ‘‘Financial Status Report’’ (or other equivalent report); (2) for construction
grants, the SF–271 ‘‘Outlay Report and
Request for Reimbursement’’ (or other
equivalent report).
Federally recognized Indian tribal government means the governing body or a
governmental agency of any Indian
tribe, band, nation, or other organized
group or community (including any
Native village as defined in section 3 of
the Alaska Native Claims Settlement
Act, 85 Stat 688) certified by the Secretary of the Interior as eligible for the
special programs and services provided
by him through the Bureau of Indian
Affairs.
Government means a State or local
government or a federally recognized
Indian tribal government.
Grant means 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 does not include technical assistance which provides services instead of
money, or other assistance in the form
of revenue sharing, loans, loan guarantees, interest subsidies, insurance, or
direct appropriations. Also, the term
does not include assistance, such as a
fellowship or other lump sum award,
which the grantee is not required to account for.
Grantee means the government to
which a 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.
Local government means a county,
municipality, city, town, township,
local public authority (including any
public and Indian housing agency
under the United States Housing Act of
1937) school district, special district,
intrastate district, council of governments (whether or not incorporated as
a nonprofit corporation under state
law), any other regional or interstate
government entity, or any agency or
instrumentality of a local government.
Obligations means the amounts of orders placed, contracts and subgrants
awarded, goods and services received,
and similar transactions during a given
period that will require payment by
the grantee during the same or a future
period.
OMB means the United States Office
of Management and Budget.
Outlays (expenditures) mean charges
made to the project or program. They
may be reported on a cash or accrual
basis. For reports prepared on a cash
basis, outlays are the sum of actual
cash disbursement for direct charges
for goods and services, the amount of
indirect expense incurred, the value of
in-kind contributions applied, and the
amount of cash advances and payments
made to contractors and subgrantees.
For reports prepared on an accrued expenditure basis, outlays are the sum of
actual cash disbursements, the amount
of indirect expense incurred, the value
of inkind contributions applied, and
the new increase (or decrease) in the
amounts owed by the grantee for goods
and other property received, for services performed by employees, contractors, subgrantees, subcontractors, and
other payees, and other amounts becoming owed under programs for which
no current services or performance are
required, such as annuities, insurance
claims, and other benefit payments.
Percentage of completion method refers
to a system under which payments are
made for construction work according
to the percentage of completion of the
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Federal Emergency Management Agency, DHS
work, rather than to the grantee’s cost
incurred.
Prior approval means documentation
evidencing consent prior to incurring
specific cost.
Real property means land, including
land improvements, structures and appurtenances thereto, excluding movable machinery and equipment.
Share, when referring to the awarding
agency’s portion of real property,
equipment or supplies, means the same
percentage as the awarding agency’s
portion of the acquiring party’s total
costs under the grant to which the acquisition costs under the grant to
which the acquisition cost of the property was charged. Only costs are to be
counted—not the value of third-party
in-kind contributions.
State means any of the several States
of the United States, the District of
Columbia, the Commonwealth of Puerto Rico, any territory or possession of
the United States, or any agency or instrumentality of a State exclusive of
local governments. The term does not
include any public and Indian housing
agency under United States Housing
Act of 1937.
Subgrant means 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 means 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.
Supplies means all tangible personal
property other than equipment as defined in this part.
Suspension means depending on the
context, either (1) temporary withdrawal of the authority to obligate
grant funds pending corrective action
by the grantee or subgrantee or a decision to terminate the grant, or (2) an
action taken by a suspending official in
accordance with agency regulations
implementing E.O. 12549 to immediately exclude a person from partici-
§ 13.4
pating in grant transactions for a period, pending completion of an investigation and such legal or debarment
proceedings as may ensue.
Termination means permanent withdrawal of the authority to obligate previously-awarded grant funds before
that authority would otherwise expire.
It also means the voluntary relinquishment of that authority by the grantee
or subgrantee. ‘‘Termination’’ does not
include: (1) Withdrawal of funds awarded on the basis of the grantee’s underestimate of the unobligated balance in
a prior period; (2) Withdrawal of the
unobligated balance as of the expiration of a grant; (3) Refusal to extend a
grant or award additional funds, to
make a competing or noncompeting
continuation, renewal, extension, or
supplemental award; or (4) voiding of a
grant upon determination that the
award was obtained fraudulently, or
was otherwise illegal or invalid from
inception.
Terms of a grant or subgrant mean all
requirements of the grant or subgrant,
whether in statute, regulations, or the
award document.
Third party in-kind contributions mean
property or services which benefit a
federally assisted project or program
and which are contributed by non-Federal third parties without charge to the
grantee, or a cost-type contractor
under the grant agreement.
Unliquidated obligations for reports
prepared on a cash basis mean the
amount of obligations incurred by the
grantee that has not been paid. For reports prepared on an accrued expenditure basis, they represent the amount
of obligations incurred by the grantee
for which an outlay has not been recorded.
Unobligated balance means the portion of the funds authorized by the
Federal agency that has not been obligated by the grantee and is determined
by deducting the cumulative obligations from the cumulative funds authorized.
§ 13.4
Applicability.
(a) General. Subparts A through D of
this part apply to all grants and subgrants to governments, except where
inconsistent with Federal statutes or
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§ 13.5
44 CFR Ch. I (10–1–11 Edition)
with regulations authorized in accordance with the exception provision of
section 13.6, or:
(1) Grants and subgrants to State and
local institutions of higher education
or State and local hospitals.
(2) The block grants authorized by
the Omnibus Budget Reconciliation
Act of 1981 (Community Services; Preventive Health and Health Services; Alcohol, Drug Abuse, and Mental Health
Services; Maternal and Child Health
Services; Social Services; Low-Income
Home Energy Assistance; States’ Program of Community Development
Block Grants for Small Cities; and Elementary and Secondary Education
other than programs administered by
the Secretary of Education under title
V, subtitle D, Chapter 2, Section 583—
the Secretary’s discretionary grant
program) and titles I-III of the Job
Training Partnership Act of 1982 and
under the Public Health Services Act
(section 1921), Alcohol and Drug Abuse
Treatment and Rehabilitation Block
Grant and Part C of title V, Mental
Health Service for the Homeless Block
Grant).
(3) Entitlement grants to carry out
the following programs of the Social
Security Act:
(i) Aid to Needy Families with Dependent Children (Title IV-A of the
Act, not including the Work Incentive
Program (WIN) authorized by section
402(a)19(G); HHS grants for WIN are
subject to this part);
(ii) Child Support Enforcement and
Establishment of Paternity (Title IV-D
of the Act);
(iii) Foster Care and Adoption Assistance (Title IV-E of the Act);
(iv) Aid to the Aged, Blind, and Disabled (Titles I, X, XIV, and XVI-AABD
of the Act); and
(v) Medical Assistance (Medicaid)
(Title XIX of the Act) not including the
State Medicaid Fraud Control program
authorized by section 1903(a)(6)(B).
(4) Entitlement grants under the following programs of The National
School Lunch Act:
(i) School Lunch (section 4 of the
Act),
(ii) Commodity Assistance (section 6
of the Act),
(iii) Special Meal Assistance (section
11 of the Act),
(iv) Summer Food Service for Children (section 13 of the Act), and
(v) Child Care Food Program (section
17 of the Act).
(5) Entitlement grants under the following programs of The Child Nutrition Act of 1966:
(i) Special Milk (section 3 of the Act),
and
(ii) School Breakfast (section 4 of the
Act).
(6) Entitlement grants for State Administrative expenses under The Food
Stamp Act of 1977 (section 16 of the
Act).
(7) A grant for an experimental, pilot,
or demonstration project that is also
supported by a grant listed in paragraph (a)(3) of this section;
(8) Grant funds awarded under subsection 412(e) of the Immigration and
Nationality Act (8 U.S.C. 1522(e)) and
subsection 501(a) of the Refugee Education Assistance Act of 1980 (Pub. L.
96–422, 94 Stat. 1809), for cash assistance, medical assistance, and supplemental security income benefits to refugees and entrants and the administrative costs of providing the assistance
and benefits;
(9) Grants to local education agencies
under 20 U.S.C. 236 through 241–1(a),
and 242 through 244 (portions of the Impact Aid program), except for 20 U.S.C.
238(d)(2)(c) and 240(f) (Entitlement Increase for Handicapped Children); and
(10) Payments under the Veterans
Administration’s State Home Per Diem
Program (38 U.S.C. 641(a)).
(b) Entitlement programs. Entitlement
programs enumerated above in § 13.4(a)
(3) through (8) are subject to subpart E.
§ 13.5 Effect on other issuances.
All other grants administration provisions of codified program regulations, program manuals, handbooks
and other nonregulatory materials
which are inconsistent with this part
are superseded, except to the extent
they are required by statute, or authorized in accordance with the exception provision in § 13.6.
§ 13.6 Additions and exceptions.
(a) For classes of grants and grantees
subject to this part, Federal agencies
may not impose additional administrative requirements except in codified
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Federal Emergency Management Agency, DHS
regulations published in the FEDERAL
REGISTER.
(b) Exceptions for classes of grants or
grantees may be authorized only by
OMB.
(c) Exceptions on a case-by-case basis
and for subgrantees may be authorized
by the affected Federal agencies.
Subpart B—Pre-Award
Requirements
§ 13.10 Forms for applying for grants.
(a) Scope. (1) This section prescribes
forms and instructions to be used by
governmental organizations (except
hospitals and institutions of higher
education operated by a government)
in applying for grants. This section is
not applicable, however, to formula
grant programs which do not require
applicants to apply for funds on a
project basis.
(2) This section applies only to applications to Federal agencies for grants,
and is not required to be applied by
grantees in dealing with applicants for
subgrants. However, grantees are encouraged to avoid more detailed or burdensome application requirements for
subgrants.
(b) Authorized forms and instructions
for governmental organizations. (1) In applying for grants, applicants shall only
use standard application forms or those
prescribed by the granting agency with
the approval of OMB under the Paperwork Reduction Act of 1980.
(2) Applicants are not required to
submit more than the original and two
copies of preapplications or applications.
(3) Applicants must follow all applicable instructions that bear OMB
clearance numbers. Federal agencies
may specify and describe the programs,
functions, or activities that will be
used to plan, budget, and evaluate the
work under a grant. Other supplementary instructions may be issued
only with the approval of OMB to the
extent required under the Paperwork
Reduction Act of 1980. For any standard form, except the SF–424 facesheet,
Federal agencies may shade out or instruct the applicant to disregard any
line item that is not needed.
(4) When a grantee applies for additional funding (such as a continuation
§ 13.12
or supplemental award) or amends a
previously submitted application, only
the affected pages need be submitted.
Previously submitted pages with information that is still current need not be
resubmitted.
§ 13.11
State plans.
(a) Scope. The statutes for some programs require States to submit plans
before receiving grants. Under regulations implementing Executive Order
12372, ‘‘Intergovernmental Review of
Federal Programs,’’ States are allowed
to simplify, consolidate and substitute
plans. This section contains additional
provisions for plans that are subject to
regulations implementing the Executive Order.
(b) Requirements. A State need meet
only Federal administrative or programmatic requirements for a plan
that are in statutes or codified regulations.
(c) Assurances. In each plan the State
will include an assurance that the
State shall comply with all applicable
Federal statutes and regulations in effect with respect to the periods for
which it receives grant funding. For
this assurance and other assurances required in the plan, the State may:
(1) Cite by number the statutory or
regulatory provisions requiring the assurances and affirm that it gives the
assurances required by those provisions,
(2) Repeat the assurance language in
the statutes or regulations, or
(3) Develop its own language to the
extent permitted by law.
(d) Amendments. A State will amend a
plan whenever necessary to reflect: (1)
New or revised Federal statutes or regulations or (2) a material change in any
State law, organization, policy, or
State agency operation. The State will
obtain approval for the amendment and
its effective date but need submit for
approval only the amended portions of
the plan.
§ 13.12 Special grant or subgrant conditions for ‘‘high-risk’’ grantees.
(a) A grantee or subgrantee may be
considered ‘‘high risk’’ if an awarding
agency determines that a grantee or
subgrantee:
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§ 13.20
44 CFR Ch. I (10–1–11 Edition)
(1) Has a history of unsatisfactory
performance, or
(2) Is not financially stable, or
(3) Has a management system which
does not meet the management standards set forth in this part, or
(4) Has not conformed to terms and
conditions of previous awards, or
(5) Is otherwise not responsible; and
if the awarding agency determines that
an award will be made, special conditions and/or restrictions shall correspond to the high risk condition and
shall be included in the award.
(b) Special conditions or restrictions
may include:
(1) Payment on a reimbursement
basis;
(2) Withholding authority to proceed
to the next phase until receipt of evidence of acceptable performance within
a given funding period;
(3) Requiring additional, more detailed financial reports;
(4) Additional project monitoring;
(5) Requiring the grante or subgrantee to obtain technical or management assistance; or
(6) Establishing additional prior approvals.
(c) If an awarding agency decides to
impose such conditions, the awarding
official will notify the grantee or subgrantee as early as possible, in writing,
of:
(1) The nature of the special conditions/restrictions;
(2) The reason(s) for imposing them;
(3) The corrective actions which must
be taken before they will be removed
and the time allowed for completing
the corrective actions and
(4) The method of requesting reconsideration of the conditions/restrictions imposed.
Subpart C—Post-Award
Requirements
FINANCIAL ADMINISTRATION
§ 13.20 Standards for financial management systems.
(a) A State must expand and account
for grant funds in accordance with
State laws and procedures for expending and accounting for its own funds.
Fiscal control and accounting procedures of the State, as well as its sub-
grantees and cost-type contractors,
must be sufficient to—
(1) Permit preparation of reports required by this part and the statutes authorizing the grant, and
(2) Permit the tracing of funds to a
level of expenditures adequate to establish that such funds have not been
used in violation of the restrictions
and prohibitions of applicable statutes.
(b) The financial management systems of other grantees and subgrantees
must meet the following standards:
(1) Financial reporting. Accurate, current, and complete disclosure of the financial results of financially assisted
activities must be made in accordance
with the financial reporting requirements of the grant or subgrant.
(2) Accounting records. Grantees and
subgrantees must maintain records
which adequately identify the source
and application of funds provided for financially-assisted activities. These
records must contain information pertaining to grant or subgrant awards
and authorizations, obligations, unobligated balances, assets, liabilities, outlays or expenditures, and income.
(3) Internal control. Effective control
and accountability must be maintained
for all grant and subgrant cash, real
and personal property, and other assets. Grantees and subgrantees must
adequately safeguard all such property
and must assure that it is used solely
for authorized purposes.
(4) Budget control. Actual expenditures or outlays must be compared
with budgeted amounts for each grant
or subgrant. Financial information
must be related to performance or productivity data, including the development of unit cost information whenever appropriate or specifically required in the grant or subgrant agreement. If unit cost data are required, estimates based on available documentation will be accepted whenever possible.
(5) Allowable cost. Applicable OMB
cost principles, agency program regulations, and the terms of grant and
subgrant agreements will be followed
in determining the reasonableness, allowability, and allocability of costs.
(6) Source documentation. Accounting
records must be supported by such
source documentation as cancelled
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Federal Emergency Management Agency, DHS
checks, paid bills, payrolls, time and
attendance
records,
contract
and
subgrant award documents, etc.
(7) Cash management. Procedures for
minimizing the time elapsing between
the transfer of funds from the U.S.
Treasury and disbursement by grantees
and subgrantees must be followed
whenever advance payment procedures
are used. Grantees must establish reasonable procedures to ensure the receipt of reports on subgrantees’ cash
balances and cash disbursements in
sufficient time to enable them to prepare complete and accurate cash transactions reports to the awarding agency. When advances are made by letterof-credit or electronic transfer of funds
methods, the grantee must make
drawdowns as close as possible to the
time of making disbursements. Grantees must monitor cash drawdowns by
their subgrantees to assure that they
conform substantially to the same
standards of timing and amount as
apply to advances to the grantees.
(c) An awarding agency may review
the adequacy of the financial management system of any applicant for financial assistance as part of a
preaward review or at any time subsequent to award.
§ 13.21 Payment.
(a) Scope. This section prescribes the
basic standard and the methods under
which a Federal agency will make payments to grantees, and grantees will
make payments to subgrantees and
contractors.
(b) Basic standard. Methods and procedures for payment shall minimize
the time elapsing between the transfer
of funds and disbursement by the
grantee or subgrantee, in accordance
with Treasury regulations at 31 CFR
part 205.
(c) Advances. Grantees and subgrantees shall be paid in advance, provided they maintain or demonstrate
the willingness and ability to maintain
procedures to minimize the time elapsing between the transfer of the funds
and their disbursement by the grantee
or subgrantee.
(d) Reimbursement. Reimbursement
shall be the preferred method when the
requirements in paragraph (c) of this
section are not met. Grantees and sub-
§ 13.21
grantees may also be paid by reimbursement for any construction grant.
Except as otherwise specified in regulation, Federal agencies shall not use the
percentage of completion method to
pay construction grants. The grantee
or subgrantee may use that method to
pay its construction contractor, and if
it does, the awarding agency’s payments to the grantee or subgrantee
will be based on the grantee’s or subgrantee’s actual rate of disbursement.
(e) Working capital advances. If a
grantee cannot meet the criteria for
advance payments described in paragraph (c) of this section, and the Federal agency has determined that reimbursement is not feasible because the
grantee lacks sufficient working capital, the awarding agency may provide
cash or a working capital advance
basis. Under this procedure the awarding agency shall advance cash to the
grantee to cover its estimated disbursement needs for an initial period
generally geared to the grantee’s disbursing cycle. Thereafter, the awarding
agency shall reimburse the grantee for
its actual cash disbursements. The
working capital advance method of
payment shall not be used by grantees
or subgrantees if the reason for using
such method is the unwillingness or inability of the grantee to provide timely
advances to the subgrantee to meet the
subgrantee’s actual cash disbursements.
(f) Effect of program income, refunds,
and audit recoveries on payment. (1)
Grantees and subgrantees shall disburse repayments to and interest
earned on a revolving fund before requesting additional cash payments for
the same activity.
(2) Except as provided in paragraph
(f)(1) of this section, grantees and subgrantees shall disburse program income, rebates, refunds, contract settlements, audit recoveries and interest
earned on such funds before requesting
additional cash payments.
(g) Withholding payments. (1) Unless
otherwise required by Federal statute,
awarding agencies shall not withhold
payments for proper charges incurred
by grantees or subgrantees unless—
(i) The grantee or subgrantee has
failed to comply with grant award conditions or
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§ 13.22
44 CFR Ch. I (10–1–11 Edition)
(ii) The grantee or subgrantee is indebted to the United States.
(2) Cash withheld for failure to comply with grant award condition, but
without suspension of the grant, shall
be released to the grantee upon subsequent compliance. When a grant is suspended, payment adjustments will be
made in accordance with § 13.43(c).
(3) A Federal agency shall not make
payment to grantees for amounts that
are withheld by grantees or subgrantees from payment to contractors
to assure satisfactory completion of
work. Payments shall be made by the
Federal agency when the grantees or
subgrantees actually disburse the withheld funds to the contractors or to escrow accounts established to assure
satisfactory completion of work.
(h) Cash depositories. (1) Consistent
with the national goal of expanding the
opportunities for minority business enterprises, grantees and subgrantees are
encouraged to use minority banks (a
bank which is owned at least 50 percent
by minority group members). A list of
minority owned banks can be obtained
from the Minority Business Development Agency, Department of Commerce, Washington, DC 20230.
(2) A grantee or subgrantee shall
maintain a separate bank account only
when required by Federal-State agreement.
(i) Interest earned on advances. Except
for interest earned on advances of
funds exempt under the Intergovernmental Cooperation Act (31 U.S.C. 6501
et seq.) and the Indian Self-Determination Act (23 U.S.C. 450), grantees and
subgrantees shall promptly, but at
least quarterly, remit interest earned
on advances to the Federal agency. The
grantee or subgrantee may keep interest amounts up to $100 per year for administrative expenses.
§ 13.22 Allowable costs.
(a) Limitation on use of funds. Grant
funds may be used only for:
(1) The allowable costs of the grantees, subgrantees and cost-type contractors, including allowable costs in the
form of payments to fixed-price contractors; and
(2) Reasonable fees or profit to costtype contractors but not any fee or
profit (or other increment above allow-
able costs) to the grantee or subgrantee.
(b) Applicable cost principles. For each
kind of organization, there is a set of
Federal principles for determining allowable costs. Allowable costs will be
determined in accordance with the cost
principles applicable to the organization incurring the costs. The following
chart lists the kinds of organizations
and the applicable cost principles.
For the costs of a—
State, local or Indian tribal
government.
Private nonprofit organization
other than an (1) institution
of higher education, (2)
hospital, or (3) organization
named in OMB Circular A–
122 as not subject to that
circular.
Educational institutions. .........
For-profit organization other
than a hospital and an organization named in OBM
Circular A–122 as not subject to that circular.
§ 13.23
Use the principles in—
OMB Circular A–87.
OBM Circular A–122.
OMB Circular A–21.
48 CFR part 31. Contract
Cost Principles and Procedures, or uniform cost accounting standards that
comply with cost principles
acceptable to the Federal
agency.
Period of availability of funds.
(a) General. Where a funding period is
specified, a grantee may charge to the
award only costs resulting from obligations of the funding period unless carryover of unobligated balances is permitted, in which case the carryover
balances may be charged for costs resulting from obligations of the subsequent funding period.
(b) Liquidation of obligations. A grantee must liquidate all obligations incurred under the award not later than
90 days after the end of the funding period (or as specified in a program regulation) to coincide with the submission
of the annual Financial Status Report
(SF–269). The Federal agency may extend this deadline at the request of the
grantee.
§ 13.24
Matching or cost sharing.
(a) Basic rule: Costs and contributions
acceptable. With the qualifications and
exceptions listed in paragraph (b) of
this section, a matching or cost sharing requirement may be satisfied by either or both of the following:
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Federal Emergency Management Agency, DHS
(1) Allowable costs incurred by the
grantee, subgrantee or a cost-type contractor under the assistance agreement. This includes allowable costs
borne by non-Federal grants or by others cash donations from non-Federal
third parties.
(2) The value of third party in-kind
contributions applicable to the period
to which the cost sharing or matching
requirements applies.
(b) Qualifications and exceptions—(1)
Costs borne by other Federal grant agreements. Except as provided by Federal
statute, a cost sharing or matching requirement may not be met by costs
borne by another Federal grant. This
prohibition does not apply to income
earned by a grantee or subgrantee from
a contract awarded under another Federal grant.
(2) General revenue sharing. For the
purpose of this section, general revenue
sharing funds distributed under 31
U.S.C. 6702 are not considered Federal
grant funds.
(3) Cost or contributions counted towards other Federal costs-sharing requirements. Neither costs nor the values of
third party in-kind contributions may
count towards satisfying a cost sharing
or matching requirement of a grant
agreement if they have been or will be
counted towards satisfying a cost sharing or matching requirement of another Federal grant agreement, a Federal procurement contract, or any
other award of Federal funds.
(4) Costs financed by program income.
Costs financed by program income, as
defined in § 13.25, shall not count towards satisfying a cost sharing or
matching requirement unless they are
expressly permitted in the terms of the
assistance agreement. (This use of general program income is described in
§ 13.25(g).)
(5) Services or property financed by income earned by contractors. Contractors
under a grant may earn income from
the activities carried out under the
contract in addition to the amounts
earned from the party awarding the
contract. No costs of services or property supported by this income may
count toward satisfying a cost sharing
or matching requirement unless other
provisions of the grant agreement ex-
§ 13.24
pressly permit this kind of income to
be used to meet the requirement.
(6) Records. Costs and third party inkind contributions counting towards
satisfying a cost sharing or matching
requirement must be verifiable from
the records of grantees and subgrantee
or cost-type contractors. These records
must show how the value placed on
third party in-kind contributions was
derived. To the extent feasible, volunteer services will be supported by the
same methods that the organization
uses to support the allocability of regular personnel costs.
(7) Special standards for third party inkind contributions. (i) Third party inkind contributions count towards satisfying a cost sharing or matching requirement only where, if the party receiving the contributions were to pay
for them, the payments would be allowable costs.
(ii) Some third party in-kind contributions are goods and services that,
if the grantee, subgrantee, or contractor receiving the contribution had
to pay for them, the payments would
have been an indirect costs. Costs sharing or matching credit for such contributions shall be given only if the
grantee, subgrantee, or contractor has
established, along with its regular indirect cost rate, a special rate for allocating to individual projects or programs the value of the contributions.
(iii) A third party in-kind contribution to a fixed-price contract may
count towards satisfying a cost sharing
or matching requirement only if it results in:
(A) An increase in the services or
property provided under the contract
(without additional cost to the grantee
or subgrantee) or
(B) A cost savings to the grantee or
subgrantee.
(iv) The values placed on third party
in-kind contributions for cost sharing
or matching purposes will conform to
the rules in the succeeding sections of
this part. If a third party in-kind contribution is a type not treated in those
sections, the value placed upon it shall
be fair and reasonable.
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§ 13.24
44 CFR Ch. I (10–1–11 Edition)
(c) Valuation of donated services—(1)
Volunteer services. Unpaid services provided to a grantee or subgrantee by individuals will be valued at rates consistent with those ordinarily paid for
similar work in the grantee’s or subgrantee’s organization. If the grantee
or subgrantee does not have employees
performing similar work, the rates will
be consistent with those ordinarily
paid by other employers for similar
work in the same labor market. In either case, a reasonable amount for
fringe benefits may be included in the
valuation.
(2) Employees of other organizations.
When an employer other than a grantee, subgrantee, or cost-type contractor
furnishes free of charge the services of
an employee in the employee’s normal
line of work, the services will be valued
at the employee’s regular rate of pay
exclusive of the employee’s fringe benefits and overhead costs. If the services
are in a different line of work, paragraph (c)(1) of this section applies.
(d) Valuation of third party donated
supplies and loaned equipment or space.
(1) If a third party donates supplies,
the contribution will be valued at the
market value of the supplies at the
time of donation.
(2) If a third party donates the use of
equipment or space in a building but
retains title, the contribution will be
valued at the fair rental rate of the
equipment or space.
(e) Valuation of third party donated
equipment, buildings, and land. If a third
party donates equipment, buildings, or
land, and title passes to a grantee or
subgrantee, the treatment of the donated property will depend upon the
purpose of the grant or subgrant, as
follows:
(1) Awards for capital expenditures. If
the purpose of the grant or subgrant is
to assist the grantee or subgrantee in
the acquisition of property, the market
value of that property at the time of
donation may be counted as cost sharing or matching,
(2) Other awards. If assisting in the
acquisition of property is not the purpose of the grant or subgrant, paragraphs (e)(2) (i) and (ii) of this section
apply:
(i) If approval is obtained from the
awarding agency, the market value at
the time of donation of the donated
equipment or buildings and the fair
rental rate of the donated land may be
counted as cost sharing or matching.
In the case of a subgrant, the terms of
the grant agreement may require that
the approval be obtained from the Federal agency as well as the grantee. In
all cases, the approval may be given
only if a purchase of the equipment or
rental of the land would be approved as
an allowable direct cost. If any part of
the donated property was acquired
with Federal funds, only the non-Federal share of the property may be
counted as cost-sharing or matching.
(ii) If approval is not obtained under
paragraph (e)(2)(i) of this section, no
amount may be counted for donated
land, and only depreciation or use allowances may be counted for donated
equipment and buildings. The depreciation or use allowances for this property
are not treated as third party in-kind
contributions. Instead, they are treated as costs incurred by the grantee or
subgrantee. They are computed and allocated (usually as indirect costs) in
accordance with the cost principles
specified in § 13.22, in the same way as
depreciation or use allowances for purchased equipment and buildings. The
amount of depreciation or use allowances for donated equipment and buildings is based on the property’s market
value at the time it was donated.
(f) Valuation of grantee or subgrantee
donated real property for construction/acquisition. If a grantee or subgrantee donates real property for a construction
or facilities acquisition project, the
current market value of that property
may be counted as cost sharing or
matching. If any part of the donated
property was acquired with Federal
funds, only the non-Federal share of
the property may be counted as cost
sharing or matching.
(g) Appraisal of real property. In some
cases under paragraphs (d), (e) and (f)
of this section, it will be necessary to
establish the market value of land or a
building or the fair rental rate of land
or of space in a building. In these cases,
the Federal agency may require the
market value or fair rental value be set
by an independent appraiser, and that
the value or rate be certified by the
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Federal Emergency Management Agency, DHS
grantee. This requirement will also be
imposed by the grantee on subgrantees.
§ 13.25 Program income.
(a) General. Grantees are encouraged
to earn income to defray program
costs. Program income includes income
from fees for services performed, from
the use or rental of real or personal
property acquired with grant funds,
from the sale of commodities or items
fabricated under a grant agreement,
and from payments of principal and interest on loans made with grant funds.
Except as otherwise provided in regulations of the Federal agency, program
income does not include interest on
grant funds, rebates, credits, discounts,
refunds, etc. and interest earned on
any of them.
(b) Definition of program income. Program income means gross income received by the grantee or subgrantee directly generated by a grant supported
activity, or earned only as a result of
the grant agreement during the grant
period. During the grant period is the
time between the effective date of the
award and the ending date of the award
reflected in the final financial report.
(c) Cost of generating program income.
If authorized by Federal regulations or
the grant agreement, costs incident to
the generation of program income may
be deducted from gross income to determine program income.
(d) Governmental revenues. Taxes, special assessments, levies, fines, and
other such revenues raised by a grantee
or subgrantee are not program income
unless the revenues are specifically
identified in the grant agreement or
Federal agency regulations as program
income.
(e) Royalties. Income from royalties
and license fees for copyrighted material, patents, and inventions developed
by a grantee or subgrantee is program
income only if the revenues are specifically identified in the grant agreement
or Federal agency regulations as program income. (See § 13.34.)
(f) Property. Proceeds from the sale of
real property or equipment will be handled in accordance with the requirements of §§ 13.31 and 13.32.
(g) Use of program income. Program
income shall be deducted from outlays
which may be both Federal and non-
§ 13.26
Federal as described below, unless the
Federal agency regulations or the
grant agreement specify another alternative (or a combination of the alternatives). In specifying alternatives, the
Federal agency may distinguish between income earned by the grantee
and income earned by subgrantees and
between the sources, kinds, or amounts
of income. When Federal agencies authorize the alternatives in paragraphs
(g) (2) and (3) of this section, program
income in excess of any limits stipulated shall also be deducted from outlays.
(1) Deduction. Ordinarily program income shall be deducted from total allowable costs to determine the net allowable costs. Program income shall be
used for current costs unless the Federal agency authorizes otherwise. Program income which the grantee did not
anticipate at the time of the award
shall be used to reduce the Federal
agency and grantee contributions rather than to increase the funds committed to the project.
(2) Addition. When authorized, program income may be added to the
funds committed to the grant agreement by the Federal agency and the
grantee. The program income shall be
used for the purposes and under the
conditions of the grant agreement.
(3) Cost sharing or matching. When authorized, program income may be used
to meet the cost sharing or matching
requirement of the grant agreement.
The amount of the Federal grant award
remains the same.
(h) Income after the award period.
There are no Federal requirements governing the disposition of program income earned after the end of the award
period (i.e., until the ending date of the
final financial report, see paragraph (a)
of this section), unless the terms of the
agreement or the Federal agency regulations provide otherwise.
§ 13.26 Non-Federal audit.
(a) Basic rule. Grantees and subgrantees are responsible for obtaining
audits in accordance with the Single
Audit Act Amendments of 1996 (31
U.S.C. 7501–7507); 31 U.S.C. 503, 1111; Executive Order 8248; Executive Order
11541; and revised OMB Circular A–133,
‘‘Audits of States, Local Governments,
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§ 13.30
44 CFR Ch. I (10–1–11 Edition)
and Non-Profit Organizations.’’ The audits shall be made by an independent
auditor in accordance with generally
accepted government auditing standards covering financial audits.
(b) Subgrantees. State or local governments, as those terms are defined for
purposes of the Single Audit Act
Amendments of 1996, that provide Federal awards to a subgrantee, which expends $500,000 or more (or other
amount as specified by OMB) in Federal awards in a fiscal year, shall:
(1) Determine whether State or local
subgrantees have met the audit requirements of the Act and whether subgrantees covered by OMB Circular A–
110, ‘‘Uniform Administrative Requirements for Grants and Agreements with
Institutions of Higher Education, Hospitals, and Other Non-Profit Organizations,’’ have met the audit requirements of the Act. Commercial contractors (private for-profit and private and
governmental organizations) providing
goods and services to State and local
governments are not required to have a
single audit performed. State and local
governments should use their own procedures to ensure that the contractor
has complied with laws and regulations
affecting the expenditure of Federal
funds;
(2) Determine whether the subgrantee spent Federal assistance funds
provided in accordance with applicable
laws and regulations. This may be accomplished by reviewing an audit of
the subgrantee made in accordance
with the Act, Circular A–110, or
through other means (e.g., program reviews) if the subgrantee has not had
such an audit;
(3) Ensure that appropriate corrective action is taken within six months
after receipt of the audit report in instance of noncompliance with Federal
laws and regulations;
(4) Consider whether subgrantee audits necessitate adjustment of the
grantee’s own records; and
(5) Require each subgrantee to permit
independent auditors to have access to
the records and financial statements.
(c) Auditor selection. In arranging for
audit services, § 13.36 shall be followed.
[53 FR 8079, 887, Mar. 11, 1988, as amended at
62 FR 45939, 45945, Aug. 29, 1997; 74 FR 15338,
Apr. 3, 2009]
CHANGES, PROPERTY, AND SUBAWARDS
§ 13.30
Changes.
(a) General. Grantees and subgrantees
are permitted to rebudget within the
approved direct cost budget to meet
unanticipated requirements and may
make limited program changes to the
approved project. However, unless
waived by the awarding agency, certain
types of post-award changes in budgets
and projects shall require the prior
written approval of the awarding agency.
(b) Relation to cost principles. The applicable cost principles (see § 13.22) contain requirements for prior approval of
certain types of costs. Except where
waived, those requirements apply to all
grants and subgrants even if paragraphs (c) through (f) of this section do
not.
(c) Budget changes—(1) Nonconstruction projects. Except as stated in other
regulations or an award document,
grantees or subgrantees shall obtain
the prior approval of the awarding
agency whenever any of the following
changes is anticipated under a nonconstruction award:
(i) Any revision which would result
in the need for additional funding.
(ii) Unless waived by the awarding
agency, cumulative transfers among direct cost categories, or, if applicable,
among separately budgeted programs,
projects, functions, or activities which
exceed or are expected to exceed ten
percent of the current total approved
budget, whenever the awarding agency’s share exceeds $100,000.
(iii) Transfer of funds allotted for
training allowances (i.e., from direct
payments to trainees to other expense
categories).
(2) Construction projects. Grantees and
subgrantees shall obtain prior written
approval for any budget revision which
would result in the need for additional
funds.
(3) Combined construction and nonconstruction projects. When a grant or
subgrant provides funding for both construction and nonconstruction activities, the grantee or subgrantee must
obtain prior written approval from the
awarding agency before making any
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Federal Emergency Management Agency, DHS
fund or budget transfer from nonconstruction to construction or vice
versa.
(d) Programmatic changes. Grantees or
subgrantees must obtain the prior approval of the awarding agency whenever any of the following actions is anticipated:
(1) Any revision of the scope or objectives of the project (regardless of
whether there is an associated budget
revision requiring prior approval).
(2) Need to extend the period of availability of funds.
(3) Changes in key persons in cases
where specified in an application or a
grant award. In research projects, a
change in the project director or principal investigator shall always require
approval unless waived by the awarding agency.
(4) Under nonconstruction projects,
contracting out, subgranting (if authorized by law) or otherwise obtaining
the services of a third party to perform
activities which are central to the purposes of the award. This approval requirement is in addition to the approval requirements of § 13.36 but does
not apply to the procurement of equipment, supplies, and general support
services.
(e) Additional prior approval requirements. The awarding agency may not
require prior approval for any budget
revision which is not described in paragraph (c) of this section.
(f) Requesting prior approval. (1) A request for prior approval of any budget
revision will be in the same budget formal the grantee used in its application
and shall be accompanied by a narrative justification for the proposed revision.
(2) A request for a prior approval
under the applicable Federal cost principles (see § 13.22) may be made by letter.
(3) A request by a subgrantee for
prior approval will be addressed in
writing to the grantee. The grantee
will promptly review such request and
shall approve or disapprove the request
in writing. A grantee will not approve
any budget or project revision which is
inconsistent with the purpose or terms
and conditions of the Federal grant to
the grantee. If the revision, requested
by the subgrantee would result in a
§ 13.31
change to the grantee’s approved
project which requires Federal prior
approval, the grantee will obtain the
Federal agency’s approval before approving the subgrantee’s request.
§ 13.31 Real property.
(a) Title. Subject to the obligations
and conditions set forth in this section,
title to real property acquired under a
grant or subgrant will vest upon acquisition in the grantee or subgrantee respectively.
(b) Use. Except as otherwise provided
by Federal statutes, real property will
be used for the originally authorized
purposes as long as needed for that purposes, and the grantee or subgrantee
shall not dispose of or encumber its
title or other interests.
(c) Disposition. When real property is
no longer needed for the originally authorized purpose, the grantee or subgrantee will request disposition instructions from the awarding agency.
The instructions will provide for one of
the following alternatives:
(1) Retention of title. Retain title after
compensating the awarding agency.
The amount paid to the awarding agency will be computed by applying the
awarding agency’s percentage of participation in the cost of the original
purchase to the fair market value of
the property. However, in those situations where a grantee or subgrantee is
disposing of real property acquired
with grant funds and acquiring replacement real property under the same program, the net proceeds from the disposition may be used as an offset to the
cost of the replacement property.
(2) Sale of property. Sell the property
and compensate the awarding agency.
The amount due to the awarding agency will be calculated by applying the
awarding agency’s percentage of participation in the cost of the original
purchase to the proceeds of the sale
after deduction of any actual and reasonable selling and fixing-up expenses.
If the grant is still active, the net proceeds from sale may be offset against
the original cost of the property. When
a grantee or subgrantee is directed to
sell property, sales procedures shall be
followed that provide for competition
to the extent practicable and result in
the highest possible return.
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§ 13.32
44 CFR Ch. I (10–1–11 Edition)
(3) Transfer of title. Transfer title to
the awarding agency or to a thirdparty designated/approved by the
awarding agency. The grantee or subgrantee shall be paid an amount calculated by applying the grantee or subgrantee’s percentage of participation
in the purchase of the real property to
the current fair market value of the
property.
§ 13.32 Equipment.
(a) Title. Subject to the obligations
and conditions set forth in this section,
title to equipment acquired under a
grant or subgrant will vest upon acquisition in the grantee or subgrantee respectively.
(b) States. A State will use, manage,
and dispose of equipment acquired
under a grant by the State in accordance with State laws and procedures.
Other grantees and subgrantees will
follow paragraphs (c) through (e) of
this section.
(c) Use. (1) Equipment shall be used
by the grantee or subgrantee in the
program or project for which it was acquired as long as needed, whether or
not the project or program continues
to be supported by Federal funds. When
no longer needed for the original program or project, the equipment may be
used in other activities currently or
previously supported by a Federal
agency.
(2) The grantee or subgrantee shall
also make equipment available for use
on other projects or programs currently or previously supported by the
Federal Government, providing such
use will not interfere with the work on
the projects or program for which it
was originally acquired. First preference for other use shall be given to
other programs or projects supported
by the awarding agency. User fees
should be considered if appropriate.
(3) Notwithstanding the encouragement in § 13.25(a) to earn program income, the grantee or subgrantee must
not use equipment acquired with grant
funds to provide services for a fee to
compete unfairly with private companies that provide equivalent services,
unless specifically permitted or contemplated by Federal statute.
(4) When acquiring replacement
equipment, the grantee or subgrantee
may use the equipment to be replaced
as a trade-in or sell the property and
use the proceeds to offset the cost of
the replacement property, subject to
the approval of the awarding agency.
(d) Management requirements. Procedures for managing equipment (including replacement equipment), whether
acquired in whole or in part with grant
funds, until disposition takes place
will, as a minimum, meet the following
requirements:
(1) Property records must be maintained that include a description of the
property, a serial number or other
identification number, the source of
property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the
cost of the property, the location, use
and condition of the property, and any
ultimate disposition data including the
date of disposal and sale price of the
property.
(2) A physical inventory of the property must be taken and the results reconciled with the property records at
least once every two years.
(3) A control system must be developed to ensure adequate safeguards to
prevent loss, damage, or theft of the
property. Any loss, damage, or theft
shall be investigated.
(4) Adequate maintenance procedures
must be developed to keep the property
in good condition.
(5) If the grantee or subgrantee is authorized or required to sell the property, proper sales procedures must be
established to ensure the highest possible return.
(e) Disposition. When original or replacement equipment acquired under a
grant or subgrant is no longer needed
for the original project or program or
for other activities currently or previously supported by a Federal agency,
disposition of the equipment will be
made as follows:
(1) Items of equipment with a current
per-unit fair market value of less than
$5,000 may be retained, sold or otherwise disposed of with no further obligation to the awarding agency.
(2) Items of equipment with a current
per unit fair market value in excess of
$5,000 may be retained or sold and the
awarding agency shall have a right to
an amount calculated by multiplying
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the current market value or proceeds
from sale by the awarding agency’s
share of the equipment.
(3) In cases where a grantee or subgrantee fails to take appropriate disposition actions, the awarding agency
may direct the grantee or subgrantee
to take excess and disposition actions.
(f) Federal equipment. In the event a
grantee or subgrantee is provided federally-owned equipment:
(1) Title will remain vested in the
Federal Government.
(2) Grantees or subgrantees will manage the equipment in accordance with
Federal agency rules and procedures,
and submit an annual inventory listing.
(3) When the equipment is no longer
needed, the grantee or subgrantee will
request disposition instructions from
the Federal agency.
(g) Right to transfer title. The Federal
awarding agency may reserve the right
to transfer title to the Federal Government or a third part named by the
awarding agency when such a third
party is otherwise eligible under existing statutes. Such transfers shall be
subject to the following standards:
(1) The property shall be identified in
the grant or otherwise made known to
the grantee in writing.
(2) The Federal awarding agency
shall issue disposition instruction
within 120 calendar days after the end
of the Federal support of the project
for which it was acquired. If the Federal awarding agency fails to issue disposition instructions within the 120
calendar-day period the grantee shall
follow § 13.32(e).
(3) When title to equipment is transferred, the grantee shall be paid an
amount calculated by applying the percentage of participation in the purchase to the current fair market value
of the property.
§ 13.33 Supplies.
(a) Title. Title to supplies acquired
under a grant or subgrant will vest,
upon acquisition, in the grantee or subgrantee respectively.
(b) Disposition. If there is a residual
inventory of unused supplies exceeding
$5,000 in total aggregate fair market
value upon termination or completion
of the award, and if the supplies are
§ 13.36
not needed for any other federally
sponsored programs or projects, the
grantee or subgrantee shall compensate the awarding agency for its
share.
§ 13.34
Copyrights.
The Federal awarding agency reserves a royalty-free, nonexclusive, and
irrevocable license to reproduce, publish or otherwise use, and to authorize
others to use, for Federal Government
purposes:
(a) The copyright in any work developed under a grant, subgrant, or contract under a grant or subgrant; and
(b) Any rights of copyright to which
a grantee, subgrantee or a contractor
purchases ownership with grant support.
§ 13.35 Subawards to
suspended parties.
debarred
Grantees and subgrantees must 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 programs under Executive
Order 12549, ‘‘Debarment and Suspension.’’
§ 13.36
Procurement.
(a) States. When procuring property
and services under a grant, a State will
follow the same policies and procedures
it uses for procurements from its nonFederal funds. The State will ensure
that every purchase order or other contract includes any clauses required by
Federal statutes and executive orders
and their implementing regulations.
Other grantees and subgrantees will
follow paragraphs (b) through (i) in
this section.
(b) Procurement standards. (1) Grantees and subgrantees will use their own
procurement procedures which reflect
applicable State and local laws and
regulations, provided that the procurements conform to applicable Federal
law and the standards identified in this
section.
(2) Grantees and subgrantees will
maintain a contract administration
system which ensures that contractors
perform in accordance with the terms,
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§ 13.36
44 CFR Ch. I (10–1–11 Edition)
conditions, and specifications of their
contracts or purchase orders.
(3) Grantees and subgrantees will
maintain a written code of standards of
conduct governing the performance of
their employees engaged in the award
and administration of contracts. No
employee, officer or agent of the grantee or subgrantee shall participate in selection, or in the award or administration of a contract supported by Federal
funds if a conflict of interest, real or
apparent, would be involved. Such a
conflict would arise when:
(i) The employee, officer or agent,
(ii) Any member of his immediate
family,
(iii) His or her partner, or
(iv) An organization which employs,
or is about to employ, any of the
above, has a financial or other interest
in the firm selected for award. The
grantee’s or subgrantee’s officers, employees or agents will neither solicit
nor accept gratuities, favors or anything of monetary value from contractors, potential contractors, or parties
to subagreements. Grantee and subgrantees may set minimum rules where
the financial interest is not substantial
or the gift is an unsolicited item of
nominal intrinsic value. To the extent
permitted by State or local law or regulations, such standards or conduct
will provide for penalties, sanctions, or
other disciplinary actions for violations of such standards by the grantee’s and subgrantee’s officers, employees, or agents, or by contractors or
their agents. The awarding agency may
in regulation provide additional prohibitions relative to real, apparent, or
potential conflicts of interest.
(4) Grantee and subgrantee procedures will provide for a review of proposed procurements to avoid purchase
of unnecessary or duplicative items.
Consideration should be given to consolidating or breaking out procurements to obtain a more economical
purchase. Where appropriate, an analysis will be made of lease versus purchase alternatives, and any other appropriate analysis to determine the
most economical approach.
(5) To foster greater economy and efficiency, grantees and subgrantees are
encouraged to enter into State and
local intergovernmental agreements
for procurement or use of common
goods and services.
(6) Grantees and subgrantees are encouraged to use Federal excess and surplus property in lieu of purchasing new
equipment and property whenever such
use is feasible and reduces project
costs.
(7) Grantees and subgrantees are encouraged to use value engineering
clauses in contracts for construction
projects of sufficient size to offer reasonable opportunities for cost reductions. Value engineering is a systematic and creative analysis of each contract item or task to ensure that its essential function is provided at the
overall lower cost.
(8) Grantees and subgrantees will
make awards only to responsible contractors possessing the ability to perform successfully under the terms and
conditions of a proposed procurement.
Consideration will be given to such
matters as contractor integrity, compliance with public policy, record of
past performance, and financial and
technical resources.
(9) Grantees and subgrantees will
maintain records sufficient to detail
the significant history of a procurement. These records will include, but
are not necessarily limited to the following: rationale for the method of
procurement, selection of contract
type, contractor selection or rejection,
and the basis for the contract price.
(10) Grantees and subgrantees will
use time and material type contracts
only—
(i) After a determination that no
other contract is suitable, and
(ii) If the contract includes a ceiling
price that the contractor exceeds at its
own risk.
(11) Grantees and subgrantees alone
will be responsible, in accordance with
good administrative practice and sound
business judgment, for the settlement
of all contractual and administrative
issues arising out of procurements.
These issues include, but are not limited to source evaluation, protests, disputes, and claims. These standards do
not relieve the grantee or subgrantee
of any contractual responsibilities
under its contracts. Federal agencies
will not substitute their judgment for
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that of the grantee or subgrantee unless the matter is primarily a Federal
concern. Violations of law will be referred to the local, State, or Federal
authority having proper jurisdiction.
(12) Grantees and subgrantees will
have protest procedures to handle and
resolve disputes relating to their procurements and shall in all instances
disclose information regarding the protest to the awarding agency. A
protestor must exhaust all administrative remedies with the grantee and subgrantee before pursuing a protest with
the Federal agency. Reviews of protests by the Federal agency will be limited to:
(i) Violations of Federal law or regulations and the standards of this section (violations of State or local law
will be under the jurisdiction of State
or local authorities) and
(ii) Violations of the grantee’s or subgrantee’s protest procedures for failure
to review a complaint or protest. Protests received by the Federal agency
other than those specified above will be
referred to the grantee or subgrantee.
(c) Competition. (1) All procurement
transactions will be conducted in a
manner providing full and open competition consistent with the standards
of section 13.36. Some of the situations
considered to be restrictive of competition include but are not limited to:
(i) Placing unreasonable requirements on firms in order for them to
qualify to do business,
(ii) Requiring unnecessary experience
and excessive bonding,
(iii) Noncompetitive pricing practices
between firms or between affiliated
companies,
(iv) Noncompetitive awards to consultants that are on retainer contracts,
(v) Organizational conflicts of interest,
(vi) Specifying only a ‘‘brand name’’
product instead of allowing ‘‘an equal’’
product to be offered and describing
the performance of other relevant requirements of the procurement, and
(vii) Any arbitrary action in the procurement process.
(2) Grantees and subgrantees will
conduct procurements in a manner
that prohibits the use of statutorily or
administratively imposed in-State or
local geographical preferences in the
§ 13.36
evaluation of bids or proposals, except
in those cases where applicable Federal
statutes expressly mandate or encourage geographic preference. Nothing in
this section preempts State licensing
laws. When contracting for architectural and engineering (A/E) services,
geographic location may be a selection
criteria provided its application leaves
an appropriate number of qualified
firms, given the nature and size of the
project, to compete for the contract.
(3) Grantees will have written selection procedures for procurement transactions. These procedures will ensure
that all solicitations:
(i) Incorporate a clear and accurate
description of the technical requirements for the material, product, or
service to be procured. Such description shall not, in competitive procurements, contain features which unduly
restrict competition. The description
may include a statement of the qualitative nature of the material, product
or service to be procured, and when
necessary, shall set forth those minimum essential characteristics and
standards to which it must conform if
it is to satisfy its intended use. Detailed product specifications should be
avoided if at all possible. When it is
impractical or uneconomical to make a
clear and accurate description of the
technical requirements, a ‘‘brand name
or equal’’ description may be used as a
means to define the performance or
other salient requirements of a procurement. The specific features of the
named brand which must be met by
offerors shall be clearly stated; and
(ii) Identify all requirements which
the offerors must fulfill and all other
factors to be used in evaluating bids or
proposals.
(4) Grantees and subgrantees will ensure that all prequalified lists of persons, firms, or products which are used
in acquiring goods and services are current and include enough qualified
sources to ensure maximum open and
free competition. Also, grantees and
subgrantees will not preclude potential
bidders from qualifying during the solicitation period.
(d) Methods of procurement to be followed—(1) Procurement by small purchase
procedures. Small purchase procedures
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§ 13.36
44 CFR Ch. I (10–1–11 Edition)
are those relatively simple and informal procurement methods for securing
services, supplies, or other property
that do not cost more than the simplified acquisition threshold fixed at 41
U.S.C. 403(11) (currently set at $100,000).
If small purchase procedures are used,
price or rate quotations shall be obtained from an adequate number of
qualified sources.
(2) Procurement by sealed bids (formal advertising). Bids are publicly solicited and a firm-fixed-price contract
(lump sum or unit price) is awarded to
the responsible bidder whose bid, conforming with all the material terms
and conditions of the invitation for
bids, is the lowest in price. The sealed
bid method is the preferred method for
procuring construction, if the conditions in § 13.36(d)(2)(i) apply.
(i) In order for sealed bidding to be
feasible, the following conditions
should be present:
(A) A complete, adequate, and realistic specification or purchase description is available;
(B) Two or more responsible bidders
are willing and able to compete effectively and for the business; and
(C) The procurement lends itself to a
firm fixed price contract and the selection of the successful bidder can be
made principally on the basis of price.
(ii) If sealed bids are used, the following requirements apply:
(A) The invitation for bids will be
publicly advertised and bids shall be
solicited from an adequate number of
known suppliers, providing them sufficient time prior to the date set for
opening the bids;
(B) The invitation for bids, which
will include any specifications and pertinent attachments, shall define the
items or services in order for the bidder
to properly respond;
(C) All bids will be publicly opened at
the time and place prescribed in the invitation for bids;
(D) A firm fixed-price contract award
will be made in writing to the lowest
responsive and responsible bidder.
Where specified in bidding documents,
factors such as discounts, transportation cost, and life cycle costs shall be
considered in determining which bid is
lowest. Payment discounts will only be
used to determine the low bid when
prior experience indicates that such
discounts are usually taken advantage
of; and
(E) Any or all bids may be rejected if
there is a sound documented reason.
(3) Procurement by competitive proposals. The technique of competitive
proposals is normally conducted with
more than one source submitting an
offer, and either a fixed-price or costreimbursement type contract is awarded. It is generally used when conditions
are not appropriate for the use of
sealed bids. If this method is used, the
following requirements apply:
(i) Requests for proposals will be publicized and identify all evaluation factors and their relative importance. Any
response to publicized requests for proposals shall be honored to the maximum extent practical;
(ii) Proposals will be solicited from
an adequate number of qualified
sources;
(iii) Grantees and subgrantees will
have a method for conducting technical evaluations of the proposals received and for selecting awardees;
(iv) Awards will be made to the responsible firm whose proposal is most
advantageous to the program, with
price and other factors considered; and
(v) Grantees and subgrantees may
use competitive proposal procedures
for qualifications-based procurement of
architectural/engineering (A/E) professional services whereby competitors’
qualifications are evaluated and the
most qualified competitor is selected,
subject to negotiation of fair and reasonable compensation. The method,
where price is not used as a selection
factor, can only be used in procurement of A/E professional services. It
cannot be used to purchase other types
of services though A/E firms are a potential source to perform the proposed
effort.
(4) Procurement by noncompetitive
proposals is procurement through solicitation of a proposal from only one
source, or after solicitation of a number of sources, competition is determined inadequate.
(i) Procurement by noncompetitive
proposals may be used only when the
award of a contract is infeasible under
small purchase procedures, sealed bids
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or competitive proposals and one of the
following circumstances applies:
(A) The item is available only from a
single source;
(B) The public exigency or emergency
for the requirement will not permit a
delay resulting from competitive solicitation;
(C) The awarding agency authorizes
noncompetitive proposals; or
(D) After solicitation of a number of
sources, competition is determined inadequate.
(ii) Cost analysis, i.e., verifying the
proposed cost data, the projections of
the data, and the evaluation of the specific elements of costs and profits, is
required.
(iii) Grantees and subgrantees may
be required to submit the proposed procurement to the awarding agency for
pre-award review in accordance with
paragraph (g) of this section.
(e) Contracting with small and minority
firms, women’s business enterprise and
labor surplus area firms. (1) The grantee
and subgrantee will take all necessary
affirmative steps to assure that minority firms, women’s business enterprises, and labor surplus area firms are
used when possible.
(2) Affirmative steps shall include:
(i) Placing qualified small and minority businesses and women’s business
enterprises on solicitation lists;
(ii) Assuring that small and minority
businesses, and women’s business enterprises are solicited whenever they
are potential sources;
(iii) Dividing total requirements,
when economically feasible, into smaller tasks or quantities to permit maximum participation by small and minority business, and women’s business
enterprises;
(iv) Establishing delivery schedules,
where the requirement permits, which
encourage participation by small and
minority business, and women’s business enterprises;
(v) Using the services and assistance
of the Small Business Administration,
and the Minority Business Development Agency of the Department of
Commerce; and
(vi) Requiring the prime contractor,
if subcontracts are to be let, to take
the affirmative steps listed in para-
§ 13.36
graphs (e)(2) (i) through (v) of this section.
(f) Contract cost and price. (1) Grantees and subgrantees must perform a
cost or price analysis in connection
with every procurement action including contract modifications. The method and degree of analysis is dependent
on the facts surrounding the particular
procurement situation, but as a starting point, grantees must make independent estimates before receiving bids
or proposals. A cost analysis must be
performed when the offeror is required
to submit the elements of his estimated cost, e.g., under professional,
consulting, and architectural engineering services contracts. A cost analysis
will be necessary when adequate price
competition is lacking, and for sole
source procurements, including contract modifications or change orders,
unless price resonableness can be established on the basis of a catalog or
market price of a commercial product
sold in substantial quantities to the
general public or based on prices set by
law or regulation. A price analysis will
be used in all other instances to determine the reasonableness of the proposed contract price.
(2) Grantees and subgrantees will negotiate profit as a separate element of
the price for each contract in which
there is no price competition and in all
cases where cost analysis is performed.
To establish a fair and reasonable profit, consideration will be given to the
complexity of the work to be performed, the risk borne by the contractor, the contractor’s investment,
the amount of subcontracting, the
quality of its record of past performance, and industry profit rates in the
surrounding geographical area for
similar work.
(3) Costs or prices based on estimated
costs for contracts under grants will be
allowable only to the extent that costs
incurred or cost estimates included in
negotiated prices are consistent with
Federal cost principles (see § 13.22).
Grantees may reference their own cost
principles that comply with the applicable Federal cost principles.
(4) The cost plus a percentage of cost
and percentage of construction cost
methods of contracting shall not be
used.
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§ 13.36
44 CFR Ch. I (10–1–11 Edition)
(g) Awarding agency review. (1) Grantees and subgrantees must make available, upon request of the awarding
agency, technical specifications on proposed procurements where the awarding agency believes such review is
needed to ensure that the item and/or
service specified is the one being proposed for purchase. This review generally will take place prior to the time
the specification is incorporated into a
solicitation document. However, if the
grantee or subgrantee desires to have
the review accomplished after a solicitation has been developed, the awarding agency may still review the specifications, with such review usually limited to the technical aspects of the proposed purchase.
(2) Grantees and subgrantees must on
request make available for awarding
agency pre-award review procurement
documents, such as requests for proposals or invitations for bids, independent cost estimates, etc. when:
(i) A grantee’s or subgrantee’s procurement procedures or operation fails
to comply with the procurement standards in this section; or
(ii) The procurement is expected to
exceed
the
simplified
acquisition
threshold and is to be awarded without
competition or only one bid or offer is
received in response to a solicitation;
or
(iii) The procurement, which is expected to exceed the simplified acquisition threshold, specifies a ‘‘brand
name’’ product; or
(iv) The proposed award is more than
the simplified acquisition threshold
and is to be awarded to other than the
apparent low bidder under a sealed bid
procurement; or
(v) A proposed contract modification
changes the scope of a contract or increases the contract amount by more
than the simplified acquisition threshold.
(3) A grantee or subgrantee will be
exempt from the pre-award review in
paragraph (g)(2) of this section if the
awarding agency determines that its
procurement systems comply with the
standards of this section.
(i) A grantee or subgrantee may request that its procurement system be
reviewed by the awarding agency to determine whether its system meets
these standards in order for its system
to be certified. Generally, these reviews shall occur where there is a continuous high-dollar funding, and thirdparty contracts are awarded on a regular basis.
(ii) A grantee or subgrantee may selfcertify its procurement system. Such
self-certification shall not limit the
awarding agency’s right to survey the
system. Under a self-certification procedure, awarding agencies may wish to
rely on written assurances from the
grantee or subgrantee that it is complying with these standards. A grantee
or subgrantee will cite specific procedures, regulations, standards, etc., as
being in compliance with these requirements and have its system available
for review.
(h) Bonding requirements. For construction or facility improvement contracts or subcontracts exceeding the
simplified acquisition threshold, the
awarding agency may accept the bonding policy and requirements of the
grantee or subgrantee provided the
awarding agency has made a determination that the awarding agency’s
interest is adequately protected. If
such a determination has not been
made, the minimum requirements shall
be as follows:
(1) A bid guarantee from each bidder
equivalent to five percent of the bid price.
The ‘‘bid guarantee’’ shall consist of a
firm commitment such as a bid bond,
certified check, or other negotiable instrument accompanying a bid as assurance that the bidder will, upon acceptance of his bid, execute such contractual documents as may be required
within the time specified.
(2) A performance bond on the part of
the contractor for 100 percent of the contract price. A ‘‘performance bond’’ is
one executed in connection with a contract to secure fulfillment of all the
contractor’s obligations under such
contract.
(3) A payment bond on the part of the
contractor for 100 percent of the contract
price. A ‘‘payment bond’’ is one executed in connection with a contract to
assure payment as required by law of
all persons supplying labor and material in the execution of the work provided for in the contract.
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(i) Contract provisions. A grantee’s
and subgrantee’s contracts must contain provisions in paragraph (i) of this
section. Federal agencies are permitted
to require changes, remedies, changed
conditions, access and records retention, suspension of work, and other
clauses approved by the Office of Federal Procurement Policy.
(1) Administrative, contractual, or
legal remedies in instances where contractors violate or breach contract
terms, and provide for such sanctions
and penalties as may be appropriate.
(Contracts more than the simplified acquisition threshold)
(2) Termination for cause and for
convenience by the grantee or subgrantee including the manner by which
it will be effected and the basis for settlement. (All contracts in excess of
$10,000)
(3) Compliance with Executive Order
11246 of September 24, 1965, entitled
‘‘Equal Employment Opportunity,’’ as
amended by Executive Order 11375 of
October 13, 1967, and as supplemented
in Department of Labor regulations (41
CFR chapter 60). (All construction contracts awarded in excess of $10,000 by
grantees and their contractors or subgrantees)
(4) Compliance with the Copeland
‘‘Anti-Kickback’’ Act (18 U.S.C. 874) as
supplemented in Department of Labor
regulations (29 CFR Part 3). (All contracts and subgrants for construction
or repair)
(5) Compliance with the Davis-Bacon
Act (40 U.S.C. 276a to 276a–7) as supplemented by Department of Labor regulations (29 CFR part 5). (Construction
contracts in excess of $2000 awarded by
grantees and subgrantees when required by Federal grant program legislation)
(6) Compliance with Sections 103 and
107 of the Contract Work Hours and
Safety Standards Act (40 U.S.C. 327–330)
as supplemented by Department of
Labor regulations (29 CFR Part 5).
(Construction contracts awarded by
grantees and subgrantees in excess of
$2000, and in excess of $2500 for other
contracts which involve the employment of mechanics or laborers)
(7) Notice of awarding agency requirements and regulations pertaining
to reporting.
§ 13.37
(8) Notice of awarding agency requirements and regulations pertaining
to patent rights with respect to any
discovery or invention which arises or
is developed in the course of or under
such contract.
(9) Awarding agency requirements
and regulations pertaining to copyrights and rights in data.
(10) Access by the grantee, the subgrantee, the Federal grantor agency,
the Comptroller General of the United
States, or any of their duly authorized
representatives to any books, documents, papers, and records of the contractor which are directly pertinent to
that specific contract for the purpose
of making audit, examination, excerpts, and transcriptions.
(11) Retention of all required records
for three years after grantees or subgrantees make final payments and all
other pending matters are closed.
(12) Compliance with all applicable
standards, orders, or requirements
issued under section 306 of the Clean
Air Act (42 U.S.C. 1857(h)), section 508
of the Clean Water Act (33 U.S.C. 1368),
Executive Order 11738, and Environmental Protection Agency regulations
(40 CFR part 15). (Contracts, subcontracts, and subgrants of amounts in
excess of $100,000)
(13) Mandatory standards and policies
relating to energy efficiency which are
contained in the state energy conservation plan issued in compliance with the
Energy Policy and Conservation Act
(Pub. L. 94–163, 89 Stat. 871).
[53 FR 8078, 8087, Mar. 11, 1988, as amended at
60 FR 19639, 19645, Apr. 19, 1995]
§ 13.37
Subgrants.
(a) States. States shall follow state
law and procedures when awarding and
administering subgrants (whether on a
cost reimbursement or fixed amount
basis) of financial assistance to local
and Indian tribal governments. States
shall:
(1) Ensure that every subgrant includes any clauses required by Federal
statute and executive orders and their
implementing regulations;
(2) Ensure that subgrantees are
aware of requirements imposed upon
them by Federal statute and regulation;
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§ 13.40
44 CFR Ch. I (10–1–11 Edition)
(3) Ensure that a provision for compliance with § 13.42 is placed in every
cost reimbursement subgrant; and
(4) 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.
(b) All other grantees. All other grantees shall follow the provisions of this
part which are applicable to awarding
agencies when awarding and administering subgrants (whether on a cost
reimbursement or fixed amount basis)
of financial assistance to local and Indian tribal governments. Grantees
shall:
(1) Ensure that every subgrant includes a provision for compliance with
this part;
(2) Ensure that every subgrant includes any clauses required by Federal
statute and executive orders and their
implementing regulations; and
(3) Ensure that subgrantees are
aware of requirements imposed upon
them by Federal statutes and regulations.
(c) Exceptions. By their own terms,
certain provisions of this part do not
apply to the award and administration
of subgrants:
(1) Section 13.10;
(2) Section 13.11;
(3) The letter-of-credit procedures
specified in Treasury Regulations at 31
CFR part 205, cited in § 13.21; and
(4) Section 13.50.
REPORTS, RECORDS RETENTION, AND
ENFORCEMENT
§ 13.40 Monitoring and reporting program performance.
(a) Monitoring by grantees. Grantees
are responsible for managing the dayto-day
operations
of
grant
and
subgrant supported activities. Grantees
must monitor grant and subgrant supported activities to assure compliance
with applicable Federal requirements
and that performance goals are being
achieved. Grantee monitoring must
cover each program, function or activity.
(b) Nonconstruction performance reports. The Federal agency may, if it decides that performance information
available from subsequent applications
contains sufficient information to
meet its programmatic needs, require
the grantee to submit a performance
report only upon expiration or termination of grant support. Unless waived
by the Federal agency this report will
be due on the same date as the final Financial Status Report.
(1) Grantees shall submit annual performance reports unless the awarding
agency requires quarterly or semi-annual reports. However, performance reports will not be required more frequently than quarterly. Annual reports
shall be due 90 days after the grant
year, quarterly or semi-annual reports
shall be due 30 days after the reporting
period. The final performance report
will be due 90 days after the expiration
or termination of grant support. If a
justified request is submitted by a
grantee, the Federal agency may extend the due date for any performance
report. Additionally, requirements for
unnecessary performance reports may
be waived by the Federal agency.
(2) Performance reports will contain,
for each grant, brief information on the
following:
(i) A comparison of actual accomplishments to the objectives established for the period. Where the output
of the project can be quantified, a computation of the cost per unit of output
may be required if that information
will be useful.
(ii) The reasons for slippage if established objectives were not met.
(iii) Additional pertinent information
including, when appropriate, analysis
and explanation of cost overruns or
high unit costs.
(3) Grantees will not be required to
submit more than the original and two
copies of performance reports.
(4) Grantees will adhere to the standards in this section in prescribing performance reporting requirements for
subgrantees.
(c) Construction performance reports.
For the most part, on-site technical inspections and certified percentage-ofcompletion data are relied on heavily
by Federal agencies to monitor
progress under construction grants and
subgrants. The Federal agency will require additional formal performance
reports only when considered necessary, and never more frequently than
quarterly.
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(d) Significant developments. Events
may occur between the scheduled performance reporting dates which have
significant impact upon the grant or
subgrant supported activity. In such
cases, the grantee must inform the
Federal agency as soon as the following
types of conditions become known:
(1) Problems, delays, or adverse conditions which will materially impair
the ability to meet the objective of the
award. This disclosure must include a
statement of the action taken, or contemplated, and any assistance needed
to resolve the situation.
(2) Favorable developments which enable meeting time schedules and objectives sooner or at less cost than anticipated or producing more beneficial results than originally planned.
(e) Federal agencies may make site
visits as warranted by program needs.
(f) Waivers, extensions. (1) Federal
agencies may waive any performance
report required by this part if not needed.
(2) The grantee may waive any performance report from a subgrantee
when not needed. The grantee may extend the due date for any performance
report from a subgrantee if the grantee
will still be able to meet its performance reporting obligations to the Federal agency.
§ 13.41 Financial reporting.
(a) General. (1) Except as provided in
paragraphs (a) (2) and (5) of this section, grantees will use only the forms
specified in paragraphs (a) through (e)
of this section, and such supplementary or other forms as may from
time to time be authorized by OMB,
for:
(i) Submitting financial reports to
Federal agencies, or
(ii) Requesting advances or reimbursements when letters of credit are
not used.
(2) Grantees need not apply the forms
prescribed in this section in dealing
with their subgrantees. However,
grantees shall not impose more burdensome requirements on subgrantees.
(3) Grantees shall follow all applicable standard and supplemental Federal
agency instructions approved by OMB
to the extend required under the Paperwork Reduction Act of 1980 for use in
§ 13.41
connection with forms specified in
paragraphs (b) through (e) of this section. Federal agencies may issue substantive supplementary instructions
only with the approval of OMB. Federal
agencies may shade out or instruct the
grantee to disregard any line item that
the Federal agency finds unnecessary
for its decisionmaking purposes.
(4) Grantees will not be required to
submit more than the original and two
copies of forms required under this
part.
(5) Federal agencies may provide
computer outputs to grantees to expedite or contribute to the accuracy of
reporting. Federal agencies may accept
the required information from grantees
in machine usable format or computer
printouts instead of prescribed forms.
(6) Federal agencies may waive any
report required by this section if not
needed.
(7) Federal agencies may extend the
due date of any financial report upon
receiving a justified request from a
grantee.
(b) Financial Status Report—(1) Form.
Grantees will use Standard Form 269 or
269A, Financial Status Report, to report the status of funds for all nonconstruction grants and for construction grants when required in accordance with paragraph (e)(2)(iii) of this
section.
(2) Accounting basis. Each grantee will
report program outlays and program
income on a cash or accrual basis as
prescribed by the awarding agency. If
the Federal agency requires accrual information and the grantee’s accounting
records are not normally kept on the
accural basis, the grantee shall not be
required to convert its accounting system but shall develop such accrual information through and analysis of the
documentation on hand.
(3) Frequency. The Federal agency
may prescribe the frequency of the report for each project or program. However, the report will not be required
more frequently than quarterly. If the
Federal agency does not specify the
frequency of the report, it will be submitted annually. A final report will be
required upon expiration or termination of grant support.
(4) Due date. When reports are required on a quarterly or semiannual
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§ 13.41
44 CFR Ch. I (10–1–11 Edition)
basis, they will be due 30 days after the
reporting period. When required on an
annual basis, they will be due 90 days
after the grant year. Final reports will
be due 90 days after the expiration or
termination of grant support.
(c) Federal Cash Transactions Report—
(1) Form. (i) For grants paid by letter or
credit, Treasury check advances or
electronic transfer of funds, the grantee will submit the Standard Form 272,
Federal Cash Transactions Report, and
when necessary, its continuation sheet,
Standard Form 272a, unless the terms
of the award exempt the grantee from
this requirement.
(ii) These reports will be used by the
Federal agency to monitor cash advanced to grantees and to obtain disbursement or outlay information for
each grant from grantees. The format
of the report may be adapted as appropriate when reporting is to be accomplished with the assistance of automatic data processing equipment provided that the information to be submitted is not changed in substance.
(2) Forecasts of Federal cash requirements. Forecasts of Federal cash requirements may be required in the
‘‘Remarks’’ section of the report.
(3) Cash in hands of subgrantees. When
considered necessary and feasible by
the Federal agency, grantees may be
required to report the amount of cash
advances in excess of three days’ needs
in the hands of their subgrantees or
contractors and to provide short narrative explanations of actions taken by
the grantee to reduce the excess balances.
(4) Frequency and due date. Grantees
must submit the report no later than 15
working days following the end of each
quarter. However, where an advance either by letter of credit or electronic
transfer of funds is authorized at an
annualized rate of one million dollars
or more, the Federal agency may require the report to be submitted within
15 working days following the end of
each month.
(d) Request for advance or reimbursement—(1) Advance payments. Requests
for Treasury check advance payments
will be submitted on Standard Form
270, Request for Advance or Reimbursement. (This form will not be used for
drawdowns under a letter of credit,
electronic funds transfer or when
Treasury check advance payments are
made to the grantee automatically on
a predetermined basis.)
(2) Reimbursements. Requests for reimbursement
under
nonconstruction
grants will also be submitted on Standard Form 270. (For reimbursement requests under construction grants, see
paragraph (e)(1) of this section.)
(3) The frequency for submitting payment requests is treated in paragraph
(b)(3) of this section.
(e) Outlay report and request for reimbursement for construction programs. (1)
Grants that support construction activities paid by reimbursement method.
(i) Requests for reimbursement under
construction grants will be submitted
on Standard Form 271, Outlay Report
and Request for Reimbursement for
Construction Programs. Federal agencies may, however, prescribe the Request for Advance or Reimbursement
form, specified in paragraph (d) of this
section, instead of this form.
(ii) The frequency for submitting reimbursement requests is treated in
paragraph (b)(3) of this section.
(2) Grants that support construction
activities paid by letter of credit, electronic funds transfer or Treasury check
advance.
(i) When a construction grant is paid
by letter of credit, electronic funds
transfer or Treasury check advances,
the grantee will report its outlays to
the Federal agency using Standard
Form 271, Outlay Report and Request
for Reimbursement for Construction
Programs. The Federal agency will provide any necessary special instruction.
However, frequency and due date shall
be governed by paragraphs (b) (3) and
(4) of this section.
(ii) When a construction grant is paid
by Treasury check advances based on
periodic requests from the grantee, the
advances will be requested on the form
specified in paragraph (d) of this section.
(iii) The Federal agency may substitute the Financial Status Report
specified in paragraph (b) of this section for the Outlay Report and Request
for Reimbursement for Construction
Programs.
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Federal Emergency Management Agency, DHS
(3) Accounting basis. The accounting
basis for the Outlay Report and Request for Reimbursement for Construction Programs shall be governed by
paragraph (b)(2) of this section.
§ 13.42 Retention and access requirements for records.
(a) Applicability. (1) This section applies to all financial and programmatic
records, supporting documents, statistical records, and other records of
grantees or subgrantees which are:
(i) Required to be maintained by the
terms of this part, program regulations
or the grant agreement, or
(ii) Otherwise reasonably considered
as pertinent to program regulations or
the grant agreement.
(2) This section does not apply to
records maintained by contractors or
subcontractors. For a requirement to
place a provision concerning records in
certain
kinds
of
contracts,
see
§ 13.36(i)(10).
(b) Length of retention period. (1) Except as otherwise provided, records
must be retained for three years from
the starting date specified in paragraph
(c) of this section.
(2) If any litigation, claim, negotiation, audit or other action involving
the records has been started before the
expiration of the 3-year period, the
records must be retained until completion of the action and resolution of all
issues which arise from it, or until the
end of the regular 3-year period, whichever is later.
(3) To avoid duplicate recordkeeping,
awarding agencies may make special
arrangements with grantees and subgrantees to retain any records which
are continuously needed for joint use.
The awarding agency will request
transfer of records to its custody when
it determines that the records possess
long-term retention value. When the
records are transferred to or maintained by the Federal agency, the 3year retention requirement is not applicable to the grantee or subgrantee.
(c) Starting date of retention period—(1)
General. When grant support is continued or renewed at annual or other intervals, the retention period for the
records of each funding period starts on
the day the grantee or subgrantee submits to the awarding agency its single
§ 13.42
or last expenditure report for that period. However, if grant support is continued or renewed quarterly, the retention period for each year’s records
starts on the day the grantee submits
its expenditure report for the last quarter of the Federal fiscal year. In all
other cases, the retention period starts
on the day the grantee submits its
final expenditure report. If an expenditure report has been waived, the retention period starts on the day the report
would have been due.
(2) Real property and equipment
records. The retention period for real
property and equipment records starts
from the date of the disposition or replacement or transfer at the direction
of the awarding agency.
(3) Records for income transactions
after grant or subgrant support. In some
cases grantees must report income
after the period of grant support.
Where there is such a requirement, the
retention period for the records pertaining to the earning of the income
starts from the end of the grantee’s fiscal year in which the income is earned.
(4) Indirect cost rate proposals, cost allocations plans, etc. This paragraph applies to the following types of documents, and their supporting records:
indirect cost rate computations or proposals, cost allocation plans, and any
similar accounting computations of
the rate at which a particular group of
costs is chargeable (such as computer
usage chargeback rates or composite
fringe benefit rates).
(i) If submitted for negotiation. If the
proposal, plan, or other computation is
required to be submitted to the Federal
Government (or to the grantee) to form
the basis for negotiation of the rate,
then the 3-year retention period for its
supporting records starts from the date
of such submission.
(ii) If not submitted for negotiation. If
the proposal, plan, or other computation is not required to be submitted to
the Federal Government (or to the
grantee) for negotiation purposes, then
the 3-year retention period for the proposal plan, or computation and its supporting records starts from end of the
fiscal year (or other accounting period)
covered by the proposal, plan, or other
computation.
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§ 13.43
44 CFR Ch. I (10–1–11 Edition)
(d) Substitution of microfilm. Copies
made by microfilming, photocopying,
or similar methods may be substituted
for the original records.
(e) Access to records—(1) Records of
grantees and subgrantees. The awarding
agency and the Comptroller General of
the United States, or any of their authorized representatives, shall have the
right of access to any pertinent books,
documents, papers, or other records of
grantees and subgrantees which are
pertinent to the grant, in order to
make audits, examinations, excerpts,
and transcripts.
(2) Expiration of right of access. The
rights of access in this section must
not be limited to the required retention period but shall last as long as the
records are retained.
(f) Restrictions on public access. The
Federal Freedom of Information Act (5
U.S.C. 552) does not apply to records
Unless required by Federal, State, or
local law, grantees and subgrantees are
not required to permit public access to
their records.
§ 13.43 Enforcement.
(a) Remedies for noncompliance. If a
grantee or subgrantee materially fails
to comply with any term of an award,
whether stated in a Federal statute or
regulation, an assurance, in a State
plan or application, a notice of award,
or elsewhere, the awarding agency may
take one or more of the following actions, as appropriate in the circumstances:
(1) Temporarily withhold cash payments pending correction of the deficiency by the grantee or subgrantee or
more severe enforcement action by the
awarding agency,
(2) Disallow (that is, deny both use of
funds and matching credit for) all or
part of the cost of the activity or action not in compliance,
(3) Wholly or partly suspend or terminate the current award for the
grantee’s or subgrantee’s program,
(4) Withhold further awards for the
program, or
(5) Take other remedies that may be
legally available.
(b) Hearings, appeals. In taking an enforcement action, the awarding agency
will provide the grantee or subgrantee
an opportunity for such hearing, ap-
peal, or other administrative proceeding to which the grantee or subgrantee is entitled under any statute
or regulation applicable to the action
involved.
(c) Effects of suspension and termination. Costs of grantee or subgrantee
resulting from obligations incurred by
the grantee or subgrantee during a suspension or after termination of an
award are not allowable unless the
awarding agency expressly authorizes
them in the notice of suspension or termination or subsequently. Other grantee or subgrantee costs during suspension or after termination which are
necessary and not reasonably avoidable
are allowable if:
(1) The costs result from obligations
which were properly incurred by the
grantee or subgrantee before the effective date of suspension or termination,
are not in anticipation of it, and, in the
case
of
a
termination,
are
noncancellable, and,
(2) The costs would be allowable if
the award were not suspended or expired normally at the end of the funding period in which the termination
takes effect.
(d) Relationship to Debarment and Suspension. The enforcement remedies
identified in this section, including
suspension and termination, do not
preclude grantee or subgrantee from
being subject to ‘‘Debarment and Suspension’’ under E.O. 12549 (see § 13.35).
§ 13.44
Termination for convenience.
Except as provided in § 13.43 awards
may be terminated in whole or in part
only as follows:
(a) By the awarding agency with the
consent of the grantee or subgrantee in
which case the two parties shall agree
upon the termination conditions, including the effective date and in the
case of partial termination, the portion
to be terminated, or
(b) By the grantee or subgrantee
upon written notification to the awarding agency, setting forth the reasons
for such termination, the effective
date, and in the case of partial termination, the portion to be terminated.
However, if, in the case of a partial termination, the awarding agency determines that the remaining portion of
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Federal Emergency Management Agency, DHS
the award will not accomplish the purposes for which the award was made,
the awarding agency may terminate
the award in its entirety under either
§ 13.43 or paragraph (a) of this section.
Subpart D—After-The-Grant
Requirements
§ 13.50
Closeout.
(a) General. The Federal agency will
close out the award when it determines
that all applicable administrative actions and all required work of the
grant has been completed.
(b) Reports. Within 90 days after the
expiration or termination of the grant,
the grantee must submit all financial,
performance, and other reports required as a condition of the grant.
Upon request by the grantee, Federal
agencies may extend this timeframe.
These may include but are not limited
to:
(1) Final performance or progress report.
(2) Financial Status Report (SF 269) or
Outlay Report and Request for Reimbursement for Construction Programs
(SF–271) (as applicable.)
(3) Final request for payment (SF–270)
(if applicable).
(4) Invention disclosure (if applicable).
(5) Federally-owned property report:
In accordance with § 13.32(f), a grantee
must submit an inventory of all federally owned property (as distinct from
property acquired with grant funds) for
which it is accountable and request disposition instructions from the Federal
agency of property no longer needed.
(c) Cost adjustment. The Federal agency will, within 90 days after receipt of
reports in paragraph (b) of this section,
make upward or downward adjustments to the allowable costs.
(d) Cash adjustments. (1) The Federal
agency will make prompt payment to
the grantee for allowable reimbursable
costs.
(2) The grantee must immediately refund to the Federal agency any balance
of unobligated (unencumbered) cash
advanced that is not authorized to be
retained for use on other grants.
Pt. 15
§ 13.51 Later disallowances and adjustments.
The closeout of a grant does not affect:
(a) The Federal agency’s right to disallow costs and recover funds on the
basis of a later audit or other review;
(b) The grantee’s obligation to return
any funds due as a result of later refunds, corrections, or other transactions;
(c) Records retention as required in
§ 13.42;
(d) Property management requirements in §§ 13.31 and 13.32; and
(e) Audit requirements in § 13.26.
§ 13.52 Collection of amounts due.
(a) Any funds paid to a grantee in excess of the amount to which the grantee is finally determined to be entitled
under the terms of the award constitute a debt to the Federal Government. If not paid within a reasonable
period after demand, the Federal agency may reduce the debt by:
(1) Making an administrative offset
against other requests for reimbursements,
(2) Withholding advance payments
otherwise due to the grantee, or
(3) Other action permitted by law.
(b) Except where otherwise provided
by statutes or regulations, the Federal
agency will charge interest on an overdue debt in accordance with the Federal Claims Collection Standards (4
CFR Chapter II). The date from which
interest is computed is not extended by
litigation or the filing of any form of
appeal.
Subpart E—Entitlement [Reserved]
PART 14 [RESERVED]
PART 15—CONDUCT AT THE MT.
WEATHER EMERGENCY ASSISTANCE CENTER AND AT THE NATIONAL EMERGENCY TRAINING
CENTER
Sec.
15.1
15.2
15.3
15.4
15.5
Applicability.
Definitions.
Access to Mt. Weather.
Inspection.
Preservation of property.
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| File Type | application/pdf |
| File Modified | 2011-12-29 |
| File Created | 2011-12-29 |