Grant terms & Conditions of Award (Reading)

OMB No. 0581-0240

Local Foods Promotion Program
FY 2015
General Award Terms and Conditions

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TABLE OF CONTENTS
1.0 Overview of Award terms and Conditions ...................................................................................................................................3
1.1 Common Terms and Acronyms ........................................................................................................................................................ 3
2.0 Financial Management ................................................................................................................................................................ 3
2.1 Cost Sharing or Matching ................................................................................................................................................................. 4
2.2 Required Documentation................................................................................................................................................................. 4
2.3 Sources and Restrictions .................................................................................................................................................................. 5
3.0 Subrecipient Monitoring & Management ....................................................................................................................................5
3.1 Accountability to the Federal Award ............................................................................................................................................... 5
4.0 Payments ..................................................................................................................................................................................... 5
4.1 Types of Payments ........................................................................................................................................................................... 5
4.2 How to Request Payments ............................................................................................................................................................... 5
4.3 Payments to Subrecipients .............................................................................................................................................................. 7
4.4 Timely Drawdown and Use of Grant Funds ..................................................................................................................................... 7
5.0 Financial Reporting ...................................................................................................................................................................... 7
6.0 Interest Earned on Advances of Grant Funds ...............................................................................................................................7
7.0 Program Income .......................................................................................................................................................................... 8
7.1 Use of Program Income by Pass-Throughs/Subrecipients ............................................................................................................... 8
8.0 Procurements .............................................................................................................................................................................. 8
9.0 Allowable Costs and Activities ..................................................................................................................................................... 8
9.1 Indirect Costs ................................................................................................................................................................................... 8
9.2 Allowable and Unallowable Costs and Activities ............................................................................................................................. 9
10.0 Changes Requiring Prior Written Approval .............................................................................................................................. 13
10.1 Change in Recipient Project Coordinator ..................................................................................................................................... 13
10.2 Change in Recipient Project Coordinator – Time Devoted to the Project ................................................................................... 13
10.3 Change in Scope or Objectives ..................................................................................................................................................... 14
10.4 One-Time Extension ..................................................................................................................................................................... 14
10.5 Budget Change ............................................................................................................................................................................. 14
10.6 Pre-Award Costs ........................................................................................................................................................................... 15
10.7 Contracting Out or Otherwise Obtaining the Services of a Third Party to Perform Activities that are Central to the Purposes of
the Award ............................................................................................................................................................................................ 15
10.8 Specific Allowable Costs Prior Approvals ..................................................................................................................................... 15
10.9 Changes to the AMS-33 that Require Prior Written Approval and a Formal Amendment .......................................................... 16
10.10 Cost Share - Changes in the Amount ......................................................................................................................................... 16
11.0 Performance Reports ............................................................................................................................................................... 16
11.1 Interim Performance Reports ...................................................................................................................................................... 16
11.2 Final Performance Reports .......................................................................................................................................................... 17
11.3 Review of Performance Reports .................................................................................................................................................. 17
11.4 Public Access to Performance Reports and Information on Report Content .............................................................................. 17
11.5 Disparaging Language and Protected Personally Identifiable Information (PII) .......................................................................... 18
11.6 Overdue Reports .......................................................................................................................................................................... 18
12.0 Acknowledgement of Support ................................................................................................................................................. 18
13.0 Property Management ............................................................................................................................................................ 18
13.1 Final Disposition of Equipment and Supplies upon Close-out ..................................................................................................... 19
14.0 Administrative and National Policy Requirements ................................................................................................................... 19
15.0 Close-Out ................................................................................................................................................................................. 21
15.1 Close-out Checklist ....................................................................................................................................................................... 21
15.2 Unused and Returned Funds........................................................................................................................................................ 21
15.3 Record Retention ......................................................................................................................................................................... 22
16.0 Access to Records .................................................................................................................................................................... 22
17.0 Remedies for Noncompliance .................................................................................................................................................. 22
17.1 Special Conditions for High-Risk Recipients ................................................................................................................................. 23
18.0 Appeals .................................................................................................................................................................................... 23
19.0 Limit of Federal Liability........................................................................................................................................................... 24
20.0 Fraud, Waste, and Abuse ......................................................................................................................................................... 24

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1.0 OVERVIEW OF AWARD TERMS AND CONDITIONS
Award terms and conditions are determined by statutory, regulatory, and agency requirements, as well as the administrative policies
of the grant program. Terms and conditions dictate important requirements related to your grant, including payments, reporting
frequency and content, and prior approval requests.
References to the terms and condition of your award are located on the AMS-33 Grant Award Face Sheet. All related documents
including appendices and these terms and conditions are housed on the AMS website:
http://www.ams.usda.gov/AMSv1.0/AMSGrants.
Grant recipients work in partnership with the Agricultural Marketing Service (AMS) to ensure proper stewardship of federal funds.
This includes submitting timely and accurate payment requests, monitoring project activities for compliance with grant program
requirements, and submitting all required reports on time.

1.1 Common Terms and Acronyms
AMS
Award Phase
CMIA
CDFA
Close-Out
Phase
EFT
FAIN
FOIA
GAGAS
OMB
PII
Pre-Award
Phase
Post-Award
Phase
SAM.gov
USDA

Agricultural Marketing Service
Award phase includes: the Agency makes funding decisions and notifies recipients of the
decisions.
Cash Management Improvement Act
Catalog of Federal Domestic Assistance
Close-out phase includes: the submission, review, and approval of all final reports as required by
specific grant program policies and federal regulations.
Electronic Fund Transfer
Federal Award Identification Number; also known as the Grant Agreement Number
Freedom of Information Act
Generally Accepted Government Auditing Standards
Office of Management and Budget
Protected Personally Identifiable Information
Pre-Award phase includes: the announcement of funding opportunities and encompasses the
preparation, submission, and review of proposals.
Post-Award phase includes: establishing accounts in the financial payment system, monitoring
for compliance with applicable laws, regulations, policies, and submitting required reports.
System for Award Management (.gov)
United States Department of Agriculture

2.0 FINANCIAL MANAGEMENT
You and your non-federal subrecipients are required to meet the standards and requirements for financial management systems set
forth or referenced in 2 CFR §200.302.
The adequacy of your financial management system is integral to your ability to account for grant expenditures and track matching
resources. You must use Federal funds in a responsible manner and apply adequate internal controls and cash management
practices consistent with the requirements outlined in 2 CFR §200.303.
You are required to complete the Grant Program Recipient Accounting System & Financial Capability Questionnaire and email it to
your AMS representative by the requested date. The responses to this questionnaire are used to assist in the AMS evaluation of your
accounting system to ensure the adequate, appropriate, and transparent use of Federal funds.
Your financial management system must provide:
1) Identification, in its accounts, of all Federal awards received and expended and the Federal programs under which they
were received. This identification must include, as applicable:
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a.
b.
c.
d.

The Catalog of Federal Domestic Assistance (CDFA) title and number,
Grant Agreement Number/Federal award identification number (FAIN) and Federal fiscal year awarded,
Name of the Federal agency, and
Name of the pass-through entity, if any.

2) Accurate, current, and complete disclosure of the financial accounting of each Federal award or program.
3) Records that adequately identify the source and application of funds for federally-funded activities. These records must
contain information pertaining to Federal awards, authorizations, obligations, unobligated balances, assets, expenditures,
income, and interest. Accounting records must be supported by source documentation such as canceled checks, paid bills,
payrolls, time and attendance records, contracts, and subaward documents.
4) Effective control over, and accountability for, all funds, property, and other assets. You must adequately safeguard all assets
and assure that they are used solely for authorized purposes.
5) Comparison of expenditures with budget amounts for each Federal award.
6) Written procedures to implement the requirements of 2 CFR §200.305 Payment, which minimize the time elapsing between
the transfer of Federal funds to any non-federal entity and the disbursement of the funds for direct program costs and the
proportionate share of any allowable indirect or facilities and administrative costs.
7) Written procedures for determining the allowability of costs in accordance with 2 CFR §200 Subpart E—Cost Principles and
the terms and conditions of this award.
You must notify your AMS point of contact when financial management problems are discovered. Deficiencies in your financial
management system, whether you report them or if they are identified by AMS may result in the imposition of special award
conditions, such as a high risk designation, or other increased monitoring.

2.1 Cost Sharing or Matching
Cost sharing or matching refers to the portion of project costs not paid by Federal funds. Cost sharing or matching in the form of
cash and/or in-kind non-Federal resources must be directly related to the project’s objectives, and be properly documented. If the
amount of the approved cost-sharing or matching provided by you or by a project partner or subrecipient changes, you must request
prior written approval from AMS (see 10.10 Cost Share-Changes in the Amount).
You are required to provide an amount equal to 25 percent match of the total cost of the project in the form of cash and/or in-kind
non-Federal resources.

2.2 Required Documentation
You must ensure that cost-sharing or matching documentation complies with the applicable Federal administrative provisions found
in 2 CFR §200.306. You must maintain documentation identifying:
1) The specific costs or contributions that constitute the cost sharing or matching,
2) The funding source or contribution, and
3) How the appropriate amount of the contribution was determined for reporting purposes.
You should refer to 2 CFR §200.306 for guidance on how to allocate the cost sharing or matching; however, if you need further
guidance, consult AMS staff about properly documenting the contribution.
Documentation does not need to be provided to AMS, but it must be retained in your project file and made available upon request.
Cost sharing or matching must be reported on the Federal Financial Report (SF-425) and the Request for Advance or Reimbursement
(SF-270).

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2.3 Sources and Restrictions
You may use funds or other resources contributed by community organizations, as well as trade associations and other project
participants to satisfy the cost sharing or matching requirement upon providing the appropriate documentation.
You cannot use Federal funds or program income to meet cost sharing or matching requirements.

3.0 SUBRECIPIENT MONITORING & MANAGEMENT
A subaward is an award provided by a pass-through entity to a subrecipient to carry out all or part of a grant project. It does not
include payments to a contractor or payments to an individual that is a beneficiary of a Federal program. A subaward may be
provided through any form of legal agreement, including an agreement that the pass-through entity considers a contract.
You must enter into a formal written agreement with each subrecipient that addresses the arrangements for meeting the
programmatic, administrative, financial, and reporting requirements of the grant, including those necessary to ensure compliance
with all applicable Federal regulations and policies. Specifically, you are responsible for including the requirements of the applicable
AMS award terms and conditions in your subaward agreements as well as the provisions required under 2 CFR §200.331
REQUIREMENTS FOR PASS-THROUGH ENTITIES.
Please see Appendix A to 2 CFR §170 – Award Term for additional reporting requirements concerning subawards.

3.1 Accountability to the Federal Award
You are accountable to AMS for the performance of subawarded projects and the appropriate expenditure of Federal funds by all
parties under this agreement. This includes maintaining the necessary documentation on all subawards and making it available to
AMS upon request. You must include subaward activities in all performance and financial reports. In general, the requirements that
apply to you as the recipient of the award also apply to your subrecipients.
If a subrecipient fails to comply with the terms and conditions of this award, you may impose special award conditions including one
or more of the corrective actions outlined in 2 CFR §200.338 REMEDIES FOR NONCOMPLIANCE.

4.0 PAYMENTS

4.1 Types of Payments
4.1.1 Advances
An advance payment is a payment that AMS or a pass-through entity makes before funds are disbursed for program purposes.
Requests for advance payments must be limited to amounts needed to meet actual and immediate cash needs.

4.1.2 Reimbursements
Reimbursements are transfers of Federal funds to you after you pay out funds for approved project activities.

4.2 How to Request Payments
Email a scanned copy of the SF-270, a Request for Advance or Reimbursement to the appropriate AMS grant program representative
as indicated in your award letter. Your authorized organizational representative must sign the SF-270.
Your final payment request must be received no later than 90 days after the end date of your grant agreement. The final payment
request must cover expenses that were incurred within the grant period of performance.
For States, payments are governed by Treasury-State Cash Management Improvement Act (CMIA) agreements and default
procedures codified at 31 CFR §205 Rules and Procedures for Efficient Federal-State Funds Transfers and TFM 4A-2000 Overall
Disbursing Rules for All Federal Agencies. All other non-federal entities must meet the payment requirements in 2 CFR §200.305.

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AMS will confirm receipt of the request for payment via email, review the request, and communicate with the recipient project
coordinator (the individual indicated in block 14 of the AMS-33 Agreement Face Sheet) if there are questions or concerns. The
recipient project coordinator will revise the request for payment to address the questions and concerns.
Upon approval, AMS will make payments via Electronic Fund Transfer (EFT) to the bank account specified by you in the System for
Award Management at www.sam.gov. If your banking information is incorrect or changes anytime during the grant period, please
update your registration at www.sam.gov and notify AMS as soon as possible to ensure proper and timely deposit of funds.

4.2.1 Payment Source Documentation and Other Requirements
In addition to the SF-270, you must submit an AMS Grant Programs Worksheet to Accompany the SF-270 Request for
Advance/Reimbursement worksheet. You can find an acceptable example of this worksheet at SF-270 Worksheet.
At any point during the grant period, AMS will determine, based on a combination of factors (initial financial capability statement,
review of the SF-270 worksheet, timely submission of first and subsequent performance reports, and accuracy of SF-270 requests)
whether the recipient will be required to submit original source documentation. You will be notified by AMS prior to implementing
this decision. In any event, recipients must continue to collect and maintain their source documentation so it may be made available
upon request by AMS at any time during the grant period. This documentation is vital to proper management of the grant, and is
one element of the grant file that, in accordance with federal regulations, must be retained for 3 years after the grant is complete.
Source documentation includes but is not limited to receipts, canceled checks, paid bills, payrolls, time and attendance records,
contracts, invoices, and subaward documents. If you have a receipt or other source document that pays for a portion of the total
amount indicated on the document, you must modify it to appropriately specify the expenses and total amount charged to the grant
program.
The SF-270 Worksheet must provide the following:
Overall Agreement Information
• Grant Agreement Number
• Recipient Organization
• Recipient Contact
• Time Period of the Request
Individual Expense Information

•

Payee name

•
•
•
•
•

Date of Expense
Amount
Assigned Budget category
Any Notes to explain the expense
The original receipt if available

You will find more specific requirements for requests for advances and reimbursements below.
4.2.2 Requests for Advance Payment
To request an advance payment, submit an SF-270 and an AMS Grant Programs Worksheet to Accompany the SF-270 Request for
Advance/Reimbursement worksheet. Requests for advance payment must meet the requirements outlined in 4.1.1 Advances. You
must retain the source documentation associated with your request for advance as soon as the product(s) has/have been delivered
or services completed.
4.2.3 Requests for Reimbursement
If you submit a request for reimbursement, you must submit an SF-270 and an AMS Grant Programs Worksheet to Accompany the
SF-270 Request for Advance/Reimbursement worksheet.
For PERSONNEL payment requests, retain documentation that meets the requirements provided in 2 CFR §200.403(i) STANDARDS
OF DOCUMENTATION OF PERSONNEL EXPENSES.
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For TRAVEL reimbursements, retain documentation that shows the location and dates of travel. Additional documentation should
be retained, if applicable, for the number miles traveled (if requesting vehicle mileage reimbursement) and flight and hotel receipts.
All travel expenses must follow the requirements listed under 2 CFR §200.474 Travel Costs.

4.3 Payments to Subrecipients
If you subaward or subcontract AMS grant funds, as the pass-through entity must provide your subrecipients with written
procedures for requesting funds from you, including dollar amount, method and schedule of payment, type of supporting
documentation required, and procedures for review and approval of expenditures of grant funds.
You must minimize the time elapsing between the transfer of cash advances and the actual disbursement of funds by your
subrecipients. If you or your subrecipients cannot meet these requirements, payments should be requested on a reimbursement
basis.

4.4 Timely Drawdown and Use of Grant Funds
AMS may reduce your grant award funds without further cause if you do not drawdown funds in the first eight months of the grant
period and at reasonable intervals thereafter. Schedule your payment requests so that all grant funds are obligated (encumbered) by
the end date of the grant agreement and liquidated within 90 days after that date. If you have received funds and have not obligated
them by the end date of the grant agreement, you must immediately refund to AMS any unobligated (unencumbered) balance of
cash.

5.0 FINANCIAL REPORTING
You must submit a Federal Financial Report (SF-425) with your interim and final performance reports as directed in 11.0
Performance Reports. The SF-425 should reflect the cumulative financial activity, including both grant and matching funds through
the grant period covered in the report. The final SF-425 should reflect cumulative financial activity for the entire grant period.
The authorized organization representative must sign the SF-425 and submit the form via email to the appropriate AMS grant
program representative. The original form should be retained in your program file.
When you submit a revised SF-425 that results in additional monetary claims, AMS will determine approval based on whether the
revised costs are allowable and necessary, and if there are funds remaining. You must also explain what internal controls you are
implementing that will preclude similar occurrences in the future.

6.0 INTEREST EARNED ON ADVANCES OF GRANT FUNDS
If you accrue interest on an advance of grant funds that amounts up to $500 per year, you may retain it for administrative expenses.
You must remit any additional interest earned on Federal advance payments deposited in interest-bearing accounts annually to the
Department of Health and Human Services Payment Management System (PMS) through an electronic medium using either
Automated Clearing House (ACH) network or a Fedwire Funds Service payment. Remittances must include pertinent information of
the payee and nature of payment in the memo area (often referred to as “addenda records” by Financial Institutions) as that will
assist in the timely posting of interested earned on federal funds. Since the payment does not originate from PMS, you must include
pertinent AMS information. The remittance must be submitted as outlined in the following examples:
ACH Returns Example:
Routing Number:
Account Number:
Bank Name and Location:

051036706
303000
Credit Gateway—ACH Receiver St. Paul, MN

Fedwire Returns Example: (Please note organization initiating payment is likely to incur a charge from your Financial Institution for
this type of payment)
Routing Number:
Account Number:
Bank Name and Location:
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021030004
75010501
Federal Reserve Bank Treas NYC/Funds Transfer Division New York, NY
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If you do not have the ability to remit funds electronically, please make your check payable to: The Department of Health and
Human Services.
Mail Check to Treasury approved lockbox:
HHS Program Support Center
P.O. Box 530231
Atlanta, GA 30353-0231
Please allow 4-6 weeks for processing of a payment by check to be applied to the appropriate PMS account.
Any additional information/instructions may be found on the PMS Website at http://www.dpm.psc.gov/.

7.0 PROGRAM INCOME
Program income is gross income earned during the grant period by you or your subrecipients resulting from activities supported by a
federal award. Program income includes, but is not limited to, income from fees for services performed; the sale of commodities or
items fabricated under an award (this includes items sold at cost if the cost of producing the item was funded in whole or partially
with grant funds); registration fees for conferences, workshops, etc. Royalties or equivalent income earned from patents, inventions,
trademarks, and copyrighted works is not subject to this section.
Any program income generated during the grant period must be used to further the objectives of the grant project.
All program income must be recorded on the Federal Financial Report (SF-425) for the period in which it was earned. You are not
accountable for program income earned after the grant period.

7.1 Use of Program Income by Pass-Throughs/Subrecipients
If you award funds to subrecipients, you as the pass-through entity are responsible to determine how your subrecipients use
program income. Uses of program income in accordance with 2 CFR §200.307(e) must be included in your program announcement
or award terms and conditions. If you do not specify how your subrecipients must use program income, the program income is
added to funds committed to the total project costs and should be used to further eligible project or program activities.

8.0 PROCUREMENTS
You and your subrecipients may acquire commercially available goods or services in connection with a grant project. In doing so, you
must use your own documented procurement procedures which may reflect applicable State, local, and tribal laws and regulations,
provided that the procurements conform to applicable Federal law and the standards 2 CFR §200.318 GENERAL PROCUREMENT
STANDARDS through § 200.326 CONTRACT PROVISIONS.
•

State recipients must follow the same policies and procedures the State uses for procurements from non-Federal funds.
The State will comply with 2 CFR §200.322 PROCUREMENT OF RECOVERED MATERIALS and ensure that every purchase
order or other contract includes any applicable provisions described in Appendix II of 2 CFR §200.

•

All other non-Federal recipients and subrecipients, including subrecipients of a state must follow 2 CFR §200.318 GENERAL
PROCUREMENT STANDARDS through §200.326 CONTRACT PROVISIONS.

•

The requirements of the Federal award also apply to any subcontract. You are responsible to ensure that all of your
contracts made under this AMS-Federal award contain the applicable provisions described in Appendix II of 2 CFR §200.

9.0 ALLOWABLE COSTS AND ACTIVITIES

9.1 Indirect Costs
Indirect costs may not exceed 10 percent of the direct costs. To calculate the allowed 10 percent, use the formula:
Projected Direct Costs ($) multiplied by Maximum Indirect Costs Allowed (%)
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= Highest Possible Indirect Costs
Example: $90,909 * 10% = $9,091
Using this formula and based on this example, an applicant who has $90,909 in direct costs could have up to $9,091 in indirect costs,
and a total of $100,000 as “Requested Federal Funds.”
Direct charging of these costs may be appropriate where the following conditions are met:
1.
2.
3.
4.

Administrative or clerical services are integral to a project or activity;
Individuals involved can be specifically identified with the project or activity;
Such costs are explicitly included in the budget or have the prior written approval of the Federal awarding agency; and
The costs are not also recovered as indirect costs.

Indirect costs (also known as “facilities and administrative costs”—defined at 2 CFR §200.56) represent the expenses of doing
business that are not readily identified with a particular grant, contract, project function or activity, but are necessary for the general
operation of the organization and the conduct of activities it performs. Refer to 2 CFR §200.413 and 414 for additional information
on determining if costs charged to the award are direct or indirect.
If an applicant has a negotiated indirect cost rate greater than 10 percent of total direct costs, the applicant must submit a copy of
their approved Indirect Cost Rate Proposal to substantiate its request for the establishment of an indirect cost rate above 10 percent
as described in appendices below.
If an applicant chooses to negotiate for a rate, the applicant must contact the cognizant agency for indirect costs. The cognizant
agency is determined by calculating which Federal agency provides the most grant funding. For assignments of cognizant agencies
see the following:
(a) For IHEs: Appendix III to Part 200—Indirect (F&A) Costs Identification and Assignment, and Rate Determination for
Institutions of Higher Education (IHEs), paragraph C.11.
(b) For nonprofit organizations: Appendix IV to Part 200—Indirect (F&A) Costs Identification and Assignment, and Rate
Determination for Nonprofit Organizations, paragraph C.12.
(c) For state and local governments: Appendix V to Part 200—State/Local Government-wide Central Service Cost Allocation
Plans, paragraph F.1.
(d) For Indian tribes: Appendix VII to Part 200—States and Local Government and Indian Tribe Indirect Cost Proposal,
paragraph D.1.

9.2 Allowable and Unallowable Costs and Activities
The following table summarizes allowable and unallowable costs in common categories of AMS project budgets. This section is not
intended to be all-inclusive. Reference Subpart E-Cost Principles of 2 CFR part 200 for a complete explanation of the allowability of
costs. If you have questions concerning the allowability of costs after reviewing this section, contact your AMS representative.
Note that the allowable costs listed below may also be cost-shared or brought as part of the required match. Unallowable costs
cannot be brought as a match.
Item

Description

Buildings and Land Construction

Unallowable for the acquisition of buildings, facilities, or land or to make additions,
improvements, modifications, replacements, rearrangements, reinstallations,
renovations or alterations of an existing building or facility (including site grading and
improvement, and architecture fees). This also includes construction and constructionrelated materials, which may include, but are not limited to the purchase of building
materials such as wood, nails, concrete, asphalt, roofing, gravel, sand, paint, insulation,
drywall, or plumbing.
Allowable for rental costs of land with prior approval (see 10.8 Specific Allowable Costs

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Item

Description
Prior Approvals).
A building is any permanent structure designed or intended for support, enclosure,
shelter or protection of people, animals or property having a permanent roof supported
by columns or walls.

Conferences

Unallowable if the project solely consists of conference/workshop costs. A conference
must be part of a larger project. The applicant should clearly indicate the purpose and
target audience for any conference or workshop, and explain how the activity will be
paid for. Also indicate if registration fees will be collected and if so, show the fees as
program income on the project and budget narrative form.
Allowable to rent a building or room for training, however, where appropriate, AMS
encourages the use of technologies such as webinars, teleconferencing, or
videoconferencing as an alternative to renting a building or a room. If renting a building
or a room is necessary, the most cost-effective facilities such as State government
conference rooms should be utilized.
Unallowable for meal costs (breakfast, lunch and dinner) unless the applicant justifies
that to do so would otherwise impose arduous conditions on the continuity of a
meeting and its participants. Breakfasts for conference attendees are usually considered
unallowable as it is expected that individuals will have sufficient time to dine on their
own before the conference begins.
Allowable for meals consumed while in official travel status. They are considered per
diem expenses and should be reimbursed in accordance with the recipient
organization’s established written travel policies.

Contributions or
Donations

Unallowable for contributions or donations, including cash, property, and services,
made by the recipient, regardless of the recipient (also referred to as “re-granting of
funds”). This includes offering incentives such as coupons and discounted services.
Unallowable to purchase food or services to donate to other entities and/or individuals.

Entertainment Costs

Allowable with prior approval for costs related to the project (see 10.8 Specific
Allowable Costs Prior Approvals).
Unallowable entertainment costs include amusement, diversion, and social activities
and any costs directly associated with such costs (such as tickets to shows or sporting
events, meals, lodging, rentals, transportation, and gratuities), regardless of their
apparent relationship to project objectives.

Equipment

Unallowable for acquisition costs of general purpose equipment.
Allowable for rental costs of general purpose equipment. Vehicles may be leased, but
not purchased.
For vehicle and equipment leases or rentals with an acquisition cost that equals or
exceeds $5,000, rates should be in light of such factors as rental costs of comparable
vehicles and equipment, if any; market conditions in the area; alternatives available;
and the type, life expectancy, condition, and value of the vehicle or equipment leased.

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Item

Description
Allowable for acquisition costs and rental costs of special purpose equipment provided
the following criterion is met:
1) Necessary for the research, scientific, or other technical activities of the grant
award;
2) Not otherwise reasonably available and accessible;
3) The type of equipment is normally charged as a direct cost by the organization;
4) Acquired in accordance with organizational practices;
5) Must only be used to solely meet the legislative purpose of the grant program
and objectives of the grant award;
6) More than one single commercial organization, commercial product, or
individual must benefit from the use of the equipment;
7) Must not use special purpose equipment acquired with grant funds to provide
services for a fee to compete unfairly with private companies that provide
equivalent services; and
8) Equipment is subject to the full range of acquisition, use, management, and
disposition requirements under 2 CFR part 200.313 as applicable.
Equipment is defined as tangible personal property (including information technology
systems) having a useful life of more than one year and a per-unit acquisition cost which
equals or exceeds the lesser of the capitalization level established by the non-Federal
entity for financial statement purposes, or $5,000. Recipients and subrecipients
purchasing equipment are encouraged to use funds to purchase only American-made
equipment or products.
Acquisition cost means the cost of the asset including the cost to ready the asset for its
intended use. Acquisition cost for equipment, for example, means the net invoice price
of the equipment, including the cost of any modifications, attachments, accessories, or
auxiliary apparatus necessary to make it usable for the purpose for which it is acquired.
General Purpose Equipment means equipment that is not limited to technical activities.
Examples include office equipment and furnishings, modular offices, telephone
networks, information technology equipment and systems, air conditioning equipment,
reproduction and printing equipment, and motor vehicles.
Special Purpose Equipment is equipment used only for research or technical activities.
LFPP examples include specialized equipment for mobile markets; mobile slaughter unit
components, and other equipment that is not readily usable in its current form.

Farm, Gardening, and
Production Activities
and Supplies

Unallowable for farm, gardening, and production activities, materials, supplies, and
other related costs.

Fines, Penalties,
Damages and Other
Settlements

Unallowable for costs resulting from violations of, alleged violations of, or failure to
comply with, Federal, state, tribal, local or foreign laws and regulations.

Fund Raising and
Investment
Management Costs

Unallowable for organized fundraising, including financial campaigns, solicitation of gifts
and bequests, and similar expenses incurred to raise capital or obtain contributions,
regardless of the purpose for which the funds will be used. This includes salaries of

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Item

Description
personnel involved in activities to raise capital.

Goods or Services for
Personal Use

Unallowable for costs of goods or services for personal use of employees regardless of
whether the cost is reported as taxable income to the employees.

Insurance and
Indemnification

Allowable as indirect costs for insurance and indemnification.

Memberships,
Subscriptions, and
Professional Activity
Costs

Unallowable for costs of membership in any civic or community organization.

Organization Costs

Allowable for costs of membership in business, technical, and professional
organizations.
Allowable with prior approval for organization costs per 2 CFR 200.455 (see 10.8
Specific Allowable Costs Prior Approvals).
Unallowable for costs of investment counsel and staff and similar expenses incurred to
enhance income from investments.

Participant Support
Costs

Pre-Award Costs

Allowable with prior approval, for support costs for items such as stipends or
subsistence allowances, travel allowances, and registration fees paid on behalf of lead
conferences or training session organizers (see 10.8 Specific Allowable Costs Prior
Approvals).
Allowable, if such costs are necessary to conduct the project or program, and would be
allowable under the grant, if awarded. A recipient may incur pre-award costs 90
calendar days before LFPP makes the award without prior approval from LFPP.
Expenses more than 90 calendar days pre-award require LFPP prior approval (see 10.6
Pre-Award Costs).
All costs incurred before LFPP makes the award are at the recipient’s risk. The
incurrence of pre-award costs in anticipation of an award imposes no obligation on LFPP
to award funds for such costs.

Rearrangement and
Reconversion Costs

Selling and Marketing
Costs

Allowable as indirect costs incurred for ordinary and normal rearrangement and
alteration of facilities. Allowable as direct costs with prior approval for special
arrangements and alterations costs incurred specifically for the award (see 10.8 Specific
Allowable Costs Prior Approvals).
Allowable with prior approval for marketing activities directly related to the funded
project. Includes general marketing of a service, but not specifically marketing a product
to consumers (see 10.8 Specific Allowable Costs Prior Approvals).
Unallowable for general marketing of the health value of food products.
Unallowable for the purchase of food-related incentives, including any types of
bonuses, coupons, and vouchers.
Unallowable for the purchase of food for cooking demonstrations.

Travel Costs
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Unallowable for travel costs of government officials per 2 CFR 200.444, including travel

12

Item

Description
costs for AMS employees.
Unallowable for international travel.

10.0 CHANGES REQUIRING PRIOR WRITTEN APPROVAL
AMS anticipates that as you progress through your project, you may require modifications to accomplish the project objectives. You
have some degree of latitude to re-budget within and between budget categories to meet unanticipated needs, and to make other
types of post-award changes. However, in some cases, you are required to request prior written approval from AMS in advance of a
change or obligation of funds. If applicable, you must include procedures for your subrecipients to follow when submitting a request
to you for a change that requires prior written approval. Requests for prior written approval must be submitted via email to your
AMS representative.
Every request for a prior written approval must include the following information:
1.
2.
3.
4.
5.

Grant agreement number;
Project title;
Name of the recipient organization;
Project contact; and
Email from the recipient project coordinator.

There may be some instances in which multiple prior approvals occur at one time. For example, a change in scope or objective may
prompt a change in the budget or specific costs that require prior approval. If this occurs, it is acceptable to combine several prior
approval requests into one request. The requests must contain the required information listed in the applicable sections below.
AMS will confirm receipt of the request, review the request, and communicate with the recipient project coordinator if there are
questions or concerns. The recipient project coordinator will have the opportunity to revise the prior approval request to address
the questions and concerns. Once approved, AMS will email the recipient project coordinator with the approval.
If you have a question concerning prior written approval, contact the appropriate AMS grant program representative identified in
your award letter.

10.1 Change in Recipient Project Coordinator
You must request prior written approval if there is a change in the recipient project coordinator listed in the approved project. The
request must contain:
1.
2.
3.
4.
5.

The name of the recipient project coordinator being replaced and the new recipient project coordinator, name and contact
information;
The qualifications of the new recipient project coordinator;
The capacity in which the new recipient project coordinator will serve;
Written notification from the new recipient project coordinator signifying his/her willingness to serve on the project; and
The effective date.

10.2 Change in Recipient Project Coordinator – Time Devoted to the Project
You must request prior written approval if the recipient project coordinator listed in the approved grant agreement disengages from
the project for a period of more than 3 months; reduces the time devoted to managing the project by 25 percent (25%) or more; or
severs his/her connection to the activities of the grant agreement. The request must include:
1.
2.

The name of the recipient project coordinator being replaced and the new recipient project coordinator name and contact
information;
The qualifications of the new recipient project coordinator;

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3.
4.
5.
6.

The capacity in which the new recipient project coordinator will serve;
Written notification from the new recipient project coordinator signifying his/her willingness to serve on the project; and
If applicable, any change in the project narrative, budget and/or timeline due to the change; and
The effective dates.

10.3 Change in Scope or Objectives
You must request prior written approval when it is necessary to modify the Project Background, Expected Outcomes and Intended
Beneficiaries, or Source of Match of the approved project, even if there is no associated budget revision that would require prior
written approval. You must use the Grant Narrative Form and/or Budget and Match Request Form for presenting this information
that was used in the approved application with changes highlighted. The request must include:
1.
2.
3.
4.
5.
6.
7.

A description of the change in the scope or objective including what activities the new work replaces;
A revised narrative for the relevant portion of the approved project;
If applicable, a description of any changes to the expected measureable outcomes;
If applicable, a revised budget and narrative using the Budget and Match Request Form;
If applicable, any change to the approved timeline;
A change in matching fund source
The proposed dates of implementation (MM/YYYY – MM/YYYY).

10.4 One-Time Extension
If the project cannot be completed within the time frame established in the grant agreement, you may request prior written approval
to extend the ending date of the grant agreement (no-cost extension of time). The request must be submitted no later than 10 days
prior to the ending date of the grant agreement. The request must include the following:
1. The length of additional time requested, and the new ending date requested;
2. A justification for the extension;
3. A summary of progress to date in terms of the project timeline and objectives. The summary may reference the most recent
Performance Report and indicate how circumstances have changed since then;
4. An estimate of the amount of remaining funds, and if applicable, the amount of matching resources yet to be expended,
and a description of how they will be used in the remaining time; and
5. A new timetable for completing the project.
The fact that funds are expected to remain unutilized or unobligated at the end of the award is not in itself sufficient justification to
receive a no-cost extension of time. Decisions will be made on a case‐by‐case basis by AMS based on the written justification
provided.
All awards are limited to 1 calendar year for planning grants and 2 calendar years for implementation grants in duration from the
start date of the grant agreement.

10.5 Budget Change
You must request prior written approval for a budget change when the cumulative amount of a transfer among separately budgeted
cost categories or line items within a cost category equals or exceeds 20 percent (20%) of the total budget for the project. The total
budget for the project includes both the grant funds and required match. You must use the Budget and Match Request Form for
presenting the budget information with changes noted. The request for a budget change must include:
1.
2.

A justification for the change; and
A description of the requested change that includes:
a. The proposed budget change,
b. Last approved budget, and
c. An updated budget of the affected cost categories.

You must use the same format/form for presenting the budget information that was used in the approved application.
Note that if the cumulative amount of the allowable budget change is less than 20 percent (20%), prior written approval is not
required.
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10.6 Pre-Award Costs
Pre-award costs are costs incurred prior to the effective date of the Federal award directly pursuant to the negotiation and in
anticipation of the Federal award where such costs are necessary for efficient and timely performance of the scope of work. Such
costs are allowable only to the extent that they would have been allowable if incurred after the date of the Federal award, and only
with prior written approval from AMS.
A recipient may incur pre-award costs 90 calendar days before AMS makes the award without prior written approval. Expenses
incurred more than 90 calendar days pre-award require written prior approval from AMS. Allowable expenses and any applicable
matching resources contained in the original approved budget, (not in addition to it) are eligible for prior written approval.
The request for prior written approval for allowable pre-award costs must include the following information:
1.
2.

A brief description of the pre-award activities completed; and
An updated budget, using the Budget and Match Request Form, clearly indicating the associated dollar amount of award
funds and/or the value of any matching resources expended during the pre-award period.

Note that AMS is under no obligation to reimburse such costs if for any reason the applicant does not receive an award or if the
award is less than anticipated and inadequate to cover such costs. Similarly, the incurrence of pre-award costs in anticipation of an
award imposes no obligation on AMS to award funds for such costs or to reimburse applicants for such expenses in the event their
project is not selected for funding. If an applicant has incurred expenses or expended matching contributions during the pre-award
period that are not covered in the approved budget, AMS does not have any obligation to reimburse applicants for such expenses or
count the matching resources toward the match requirement.

10.7 Contracting Out or Otherwise Obtaining the Services of a Third Party to Perform Activities that
are Central to the Purposes of the Award
You must request prior written approval for a change that involves subawarding, transferring or contracting out of any work under a
Federal award. This provision does not apply to the acquisition of supplies, material, equipment or general support services. The
following information must be included in the request:
1.
2.
3.

A brief description of the change;
A brief explanation as to why the change is being requested;
If a budget change is required:
a.
b.
c.

4.

A description of the proposed budget change,
The last approved budget, and
An updated budget of the affected cost categories using the Budget and Match Request Form; and

If the third party was not identified in the original application, a description of the third party’s qualifications, how their
work will fulfill the project goals, and an itemized budget showing cost categories with appropriate justification.

10.8 Specific Allowable Costs Prior Approvals
You must request prior written approval for the following allowable costs that were not included in the approved project and/or the
latest budget. See section 9.0 Allowable Costs and Activities for more information on these costs.
•
•
•
•
•
•
•

Entertainment
Rental of Land
Special Purpose Equipment
Organization Costs
Rearrangement and Reconversion Costs
Selling and Marketing Costs
Participant Support Costs

The request must include the following:
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1.

A description of and justification for the cost including how it furthers the objectives of the project; and

2.

If applicable, a comparison between the most recent budget and the proposed budget as well as an updated Budget and
Match Request Form showing the affected cost categories.

10.9 Changes to the AMS-33 that Require Prior Written Approval and a Formal Amendment
Beginning February 1, 2016, recipients will no longer be able to request a recipient organization change in the event that a
completely new organization (that has a new DUNS number) assumes responsibility for the project. This would be recipient
organization provided in Box 12, “Grantee”, on the fully-executed AMS-33 Agreement Face Sheet.
However, you may request prior written approval in the event that the original recipient organization changes only their name. In
this case, the DUNS number would remain the same, while only the organization name would change. Recipients are responsible for
properly updating their registration within both the DUNS and SAM.gov electronic systems.
Contact the appropriate AMS grant program representative identified in your award letter for guidance about the requirements for
reporting the change.

10.10 Cost Share - Changes in the Amount
You must request prior written approval to change the amount of your approved cost-share or match or to change the amount of
approved cost-sharing or match provided by a project partner or by a subrecipient. The following information must be included in
the request:
1.
2.

3.

A justification for the change;
A description of how the required match will be met including the source of the match, the amount of the match to be
provided, and the composition of the match. You must use Budget and Match Request Form for presenting the match
verification; and
A description of the change that includes a comparison between the latest budget and the proposed budget as well as an
updated budget of the affected cost categories to demonstrate that the overall required match will be met using the
Budget and Match Request Form.

11.0 PERFORMANCE REPORTS
AMS requires both interim and final performance reports to illustrate the progress made toward the completion of each objective
within the grant agreement. These reports are an important vehicle for sharing award findings and success with the public.
Performance Reports should correspond with the activities and outcomes outlined in the proposal, and should be formatted and
submitted using the approved templates or guidance provided by the grant program.
If due to extenuating circumstances, a project must be extended beyond the performance period stated on the AMS-33, recipients
should see section 10.4 One-Time Extension. Additional performance reports may be necessary depending on the length of the time
extension.
If performance reports are prepared by a third party and/or subrecipient, it is your responsibility to review and approve the report
before forwarding it to AMS.

11.1 Interim Performance Reports
Interim Performance Reports track the progress of an award throughout the performance period.
The six-month performance report and interim SF-425 are due within 30 days after each six-month performance period. The
Implementation projects interim performance report due date schedule is:
Interim Report

Period of Performance

Report Due Date

st

9/30/2015 to 3/31/2016

4/30/2016

nd

4/1/2016 to 9/29/2016

10/29/2016

rd

9/30/2016 to 3/31/2017

4/30/2017

1 Interim
2 Interim
3 Interim
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The Planning projects interim performance report due date schedule is:
Interim Report
st

1 Interim

Period of Performance

Report Due Date

9/30/2015 to 3/31/2016

4/30/2016

Refer to the Interim Report form/format for report content.
The interim performance report should be sent via email to the appropriate AMS grant program representative as indicated in your
award letter. Upon receipt of the interim report, AMS will confirm receipt, review it, and communicate any questions or concerns.
The recipient’s authorized representative may revise the report to address the questions and concerns. Accepted Interim Reports
will become part of the official grant file.
If you complete your grant project early, you may submit a Final Performance Report in lieu of an Interim Performance Report. See
11.2 Final Performance Reports.

11.2 Final Performance Reports
Final Performance Reports are required no later than 90 days after the performance period expiration date.
Implementation final performance reports are due by December 29, 2017 unless AMS grants an extension.
Planning final performance reports are due by December 29, 2016 unless AMS grants an extension.
Information from your Final Performance Report will be posted on the AMS website.
The form/format to be used and the information to be included in the performance report are specified in the form at
http://www.ams.usda.gov/services/grants/lfpp/administer.
The final performance report should be emailed to the appropriate AMS grant representative as indicated in your award letter. AMS
will confirm receipt of the final performance report, review it, and communicate with the recipient project coordinator regarding
questions or concerns. The recipient project coordinator may revise the report to address the questions and concerns.

11.3 Review of Performance Reports
AMS will review performance reports to ensure completeness and that there is substantial progress toward meeting the project
goals and measurable outcomes. AMS will notify the recipient project coordinator if additional information is required. The recipient
project coordinator is responsible for adequately addressing all AMS comments and questions prior to sending the revised
performance report. If you are a pass through entity, ensure that subrecipients are aware that after AMS reviews their performance
report, additional information may be required.

11.4 Public Access to Performance Reports and Information on Report Content
Accomplishments, procedures, and other benefits resulting from the Federally-funded project may be made available publicly
through online posting, as well as through Freedom of Information Act (FOIA) requests. The AMS website is the primary means to
distribute final results of each Federally-funded grant project, although additional proposal/project information, within the
regulations, will be released under the FOIA.
Since the information will be made public, particularly the information contained in the Final Performance Reports, AMS encourages
you to eliminate as many grammatical and spelling errors as possible in your submitted forms and materials. AMS will not edit the
reports beyond checking to ensure that the content is complete, including inclusion of activities and outcomes associated with each
project. Should AMS find that the report is incomplete, you will have the opportunity to revise the report and to address questions
and concerns prior to the information being made available through the AMS website.
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11.5 Disparaging Language and Protected Personally Identifiable Information (PII)
Grant recipients are prohibited from using federal funds to conduct any activity that is false, misleading, or disparaging to
agricultural commodities, nor are you allowed to disparage the mission, goals, and/or actions of another organization or individual in
performance reports or through other means.
The term “PII,” as defined in OMB Memorandum M-07-16 refers to information that can be used to distinguish or trace an
individual’s identity, either alone or when combined with other personal or identifying information that is linked or linkable to a
specific individual. Non-PII can become PII whenever additional information is made publicly available — in any medium and from
any source — that, when combined with other available information, could be used to identify an individual.
Reports submitted to AMS must avoid use of Protected PII, including use of an individual's first name or first initial and last name in
combination with any one or more of types of information, including, but not limited to, social security number, passport number,
credit card numbers, clearances, bank numbers, biometrics, date and place of birth, mother's maiden name, criminal, medical and
financial records, educational transcripts, etc. Personal contact information included in the Final Report should be limited to the
Project Coordinator name, e-mail address, as well as organization name, physical address, and telephone number.

11.6 Overdue Reports
As stated in 2 CFR §200.328, events may occur between the scheduled performance reporting dates that have significant impact
upon the project. In such cases, you must inform AMS or the pass-through entity as soon as you are aware of problems, delays, or
adverse conditions, preferably no less than 14 calendar days from the due date. This disclosure must include a statement of the
action taken, or contemplated, and any assistance needed to resolve the situation. If AMS detects a recurring issue of late report
submissions, enforcement actions as described in section 17.0 Remedies for Noncompliance may be taken.

12.0 ACKNOWLEDGEMENT OF SUPPORT
You and/or your subrecipients are not required to acknowledge USDA, AMS support through oral or written presentation; however,
if you or your subrecipient chooses to add an acknowledgement of support, it must read as follows:
Funding for this [project] was made possible by the U.S. Department of Agriculture’s (USDA) Agricultural Marketing
Service through grant [Insert Agreement Number] in addition to matching funds from [Name Any Matching Fund
Organizations]. Its contents are solely the responsibility of the authors and do not necessarily represent the official
views of the USDA.
Note that USDA symbols or logos are only intended for the official use of the USDA. They are expressly excluded from use to imply
endorsement of a commercial product or service. The symbol or logo may not be used by anyone outside of USDA without
permission.

13.0 PROPERTY MANAGEMENT
A title to special purpose equipment and supplies acquired by you or your subrecipient will vest, upon acquisition, in you or your
subrecipient, respectively. You and your non-federal subrecipients must provide the equivalent insurance coverage for equipment
acquired with Federal funds.
State recipients will use, manage, and dispose of special purpose equipment acquired under a grant in accordance with State laws
and procedures and supplies in accordance with 2 CFR §200.314 (b).
You (if a non-state recipient) and your subrecipients are subject to the full range of acquisition, use, management, and disposition
requirements of 2 CFR §§200.313 (c) through (e) and 200.314 (b). You and your subrecipients must meet the following property
management standards for equipment acquired in whole or in part under a grant:
• Use the equipment for the authorized purposes of the project until funding for the project ceases, or until no longer needed
for the purposes of the project
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•
•

•

•
•
•

•
•
•
•

Must not encumber the equipment without prior AMS approval
When the equipment is no longer needed for the original program or project, the equipment may be used in other activities
supported by a Federal agency, in the following order of priority: (i) activities under a Federal award from the Federal
awarding agency that funded the original projects; then (ii) activities under Federal awards from other Federal awarding
agencies. SF-428-C may be used at any time during the grant award, except at close out, to request disposition instructions
Must make the equipment available for use on other projects or programs currently or previously supported by the Federal
government, provided that such use will not interfere with the work on the projects or program for which it was originally
acquired
Must not use equipment or supplies acquired with grant funds to provide services for a fee that is less than private
companies charge for equivalent services and use fees in accordance with program income requirements
May use the equipment to be replaced as a trade-in or sell the equipment and use the proceeds to offset the cost of
replacement equipment
Maintain property records that include a description of the property, a serial number or other identification number, the
source of funding for the property, who holds title, the acquisition date, and cost of the property, percentage of Federal
participation in the project costs for the Federal award under which the property was acquired, the location, use and
condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property
Take a physical inventory of the equipment, at least once every two years, and reconcile the results with the property
records
Develop control procedures and safeguards to prevent loss, damage, and theft
Develop adequate maintenance procedures to keep the equipment in good condition
Establish proper sales procedures when the subrecipient is authorized to sell the equipment to ensure highest rate of
return

You and your subrecipients must obtain prior written approval from AMS to acquire special purpose equipment (see 10.8 Specific
Allowable Cost Prior Approvals.)

13.1 Final Disposition of Equipment and Supplies upon Close-out
If the special purpose equipment has a per-unit fair market value of less than $5,000, and the equipment is no longer needed for the
original project or program or for other activities currently or previously supported by a Federal awarding agency, you or your
subrecipient may retain, sell, or dispose of equipment with no further obligation to AMS.
If the special purpose equipment or supplies have a per-unit fair market value of $5,000 or more, and the equipment or supplies are
no longer needed for the original project or program or for other activities currently or previously supported by a Federal awarding
agency, you or your subrecipient may retain the equipment and supplies or they may be sold. In this case, you as the recipient or as
the pass-through entity must complete a Tangible Personal Property Final Report (SF-428-B) and email it to AMS as a written
disposition request/report.
AMS will review the request and provide you with disposition instructions for the special purpose equipment and/or supplies. The
disposition instructions will notify you that AMS is entitled to an amount calculated as follows:
AMS Amount = Current Market value or proceeds from sale of the equipment/supplies
X Percentage of AMS participation in the cost of the original purchase
If the equipment and/or supplies are sold, you or your subrecipient are permitted to deduct and retain from the Federal share $500
or 10 percent of the proceeds, whichever is less, for its sale and handling expenses. You are responsible for ensuring that your
subrecipient disposes the equipment and/or supplies in accordance with AMS disposition instructions.

14.0 ADMINISTRATIVE AND NATIONAL POLICY REQUIREMENTS
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Several federal statutes and regulations apply to grant applications considered for review and to project grants awarded under this
program. These include, but are not limited to the ones listed below.
Federal statutes and regulations found on the SF-424B “Assurances –Non-Construction Programs” (this form was submitted through
Grants.gov with your application package)
2 CFR §25 – System for Award Management and Universal Identifier Requirements. See Appendix A to §25 – Award Term for Central
Contractor Registration and Universal Identifier Requirements.
You must notify your potential subrecipients, with the exception of individuals, that they may not receive a subaward unless the
entity has provided its DUNS number. You must not make a subaward to an entity unless the entity has provided its DUNS number.
2 CFR §170 – Reporting Subaward and Executive Compensation Information. See Appendix A to §170 – Award Term for Reporting
Subawards and Executive Compensation requirements.
2 CFR §175 – Award Term for Trafficking in Persons, which is the implementation of the Trafficking Victims Protection Act of 2000, as
amended (22 U.S.C. 7104(g))
2 CFR §180 and §417 – OMB Guidelines to Agencies on Government-Wide Debarment and Suspension (Nonprocurement) and USDA
Nonprocurement Debarment and Suspension
2 CFR §200 – Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards
2 CFR §400 – USDA implementation of 2 CFR §200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for
Federal Awards
2 CFR §415 – USDA General Program Administrative Regulations
2 CFR §416 – USDA General Program Administrative Requirements for Grants and Cooperative Agreements to State and Local
Governments
2 CFR §418 – USDA implementation of Restrictions on Lobbying - Imposes prohibitions and requirements for disclosure and
certification related to lobbying on recipients of federal contracts, grants, cooperative agreements, and loans.
2 CFR §421 – USDA Implementation of Government-wide Requirements for Drug-Free Workplace (Financial Assistance)
7 CFR §1, subpart A – USDA implementation of the Freedom of Information Act
7 CFR §1b – USDA procedures to implement the National Environmental Policy Act of 1969, as amended
7 CFR §3 – USDA implementation of OMB Circular No. A-129 regarding debt collection
7 CFR §15, subpart A – USDA implementation of Title VI of the Civil Rights Act of 1964, as amended
7 CFR §331 and 9 CFR §121—USDA implementation of the Agricultural Bioterrorism Protection Act of 2002
35 U.S.C. 200 et seq.—Bayh Dole Act, controlling allocation of rights to inventions made by employees of small business firms and
domestic nonprofit organizations, including universities, in federally-assisted programs (implementing regulations are contained in
37 CFR §401).
41 CFR §§301-10.131 to 301-10.143 – Use of United States Flag Air Carriers, which implements the Fly America Act (49 U.S.C. 40118).
For more information see http://www.gsa.gov/portal/content/103191.
48 CFR §25 – Foreign Acquisition, which implements the Buy American Act (41 U.S.C. Ch. 83)
48 CFR subpart 31.2 – Contracts with Commercial Organizations
44 U.S.C. 3541 et seq. (Pub. L. 107-347) – Federal Information System Security Management Act of 2002 (FISMA)
An Act designed to improve computer and network security within the Federal Government. Applies to recipients if it will collect,
store, process, transmit, or use information on behalf of AMS.
Motor Vehicle Safety – Highway Safety Act of 1966, as amended (23 U.S.C. 402 & 403); Government Organization and Employees
Act, as amended (5 U.S.C. 7902 (c)); Occupational Safety and Health Act of 1970, as amended (29 U.S.C. 668); Federal Property and
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Administrative Services Act of 1949, as amended (40 U.S.C. 101, et seq.); Increasing Seat Belt Use in the United States (EO 13043);
Federal Leadership on Reducing Text Messaging While Driving (EO 13513)
Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 2012, P.L. No. 112-55,
Division A, Sections 738 and 739 regarding corporate felony convictions and corporate federal tax delinquencies

15.0 CLOSE-OUT
You and AMS will close-out the Federal award when all applicable administrative actions and required work are completed, as
provided in 2 CFR §200.343. When an award is closed out, terminated or partially terminated, you and your subrecipients are
responsible for compliance with the requirements in 2 CFR §200.344 Post-Close Out Adjustments and Continuing Responsibilities.
You must submit, no later than 90 calendar days after the grant end date, all financial, performance, and other reports as required
by these award terms and conditions.

15.1 Close-out Checklist
The following documents must be submitted to and approved by AMS to successfully closeout a grant:
1) Final Performance Report (see Section 11.2) and any project deliverables (e.g., photos, brochures, other print materials
from the project). Project deliverables must be submitted electronically. If, for example the deliverable is an object that
cannot easily be shared electronically (e.g. non-electronic promotional items), the recipient should take a picture of the
object and send it to grant staff as part of the report.
2) Final Federal Financial Report (SF-425) (see Section 5.0)
3) Request for Final Advance Payment or Reimbursement (SF-270) (see Section 4.2 and subsections)
4) If applicable, a refund check, made out to the Agricultural Marketing Service, for any unused funds (see Section 15.2)
5) Tangible property report (SF-428 B) (if applicable) (see Section 13.1)
Requirements for Reapplication
Future eligibility for AMS competitive grants requires that you submit all of the required close-out documents for your current grant
award. This process includes AMS receipt and approval of all required documentation and reports. Additionally, you must be in
good standing with AMS, which includes meeting reporting deadlines and reliably communicating with grant program staff as
necessary.
Upon receiving and accepting all close-out documents, AMS will issue a close-out letter. Failure to submit acceptable close-out
materials for an existing grant within 90 days following the grant ending date may result in exclusion from future AMS grant
consideration.

15.2 Unused and Returned Funds
Before submitting an SF-425 for a grant that has been completed or terminated, you must liquidate all obligations not later than 90
days after the performance period end date of the grant agreement. If you have a balance of funds that AMS disbursed to you
previously that you did not obligate by the performance end date of the grant agreement, you must return these funds to AMS.
AMS’s request to return an unobligated balance following expiration or termination of a grant is not considered an adverse action
and is not subject to appeal.
Return the funds payable by check to the “Agricultural Marketing Service.” Because packages sent to AMS through the United States
Postal Service may be damaged or delayed due to security procedures at USDA Washington, D.C. headquarters, the use of express
mail or courier services is required.
Send payments by Express mail or courier submission to:
Local Foods Promotion Program
Attn: LFPP Program Manager
USDA, Agricultural Marketing Service
1400 Independence Avenue, SW
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Room 4543– South Building
Stop 0264
Washington, DC 20250-0264
AMS will notify you when we receive the check.

15.3 Record Retention
In accordance with Federal regulations, you must retain all records relating to the grant for a period of 3 years after the final Federal
Financial Report (SF-425) is received by AMS or until final resolution of any audit finding or litigation. See 2 CFR §200.333 for
exceptions and qualifications to the 3-year retention requirement and the retention period for other types of grant-related records,
including property records.
In accordance with the May 2013 Executive Order on Making Open and Machine Readable the New Default for Government
Information, you and your subrecipients should, whenever practicable, collect, transmit, and store Federal award-related
information in electronic formats rather than on paper. However, you must always provide or accept paper versions of awardrelated information to and from any subrecipients upon request.

16.0 ACCESS TO RECORDS
AMS, Inspectors General, the Comptroller General of the United States, and the pass-through entity, or any of their authorized
representatives, shall have the right of access to any pertinent documents, papers, or other records of recipients and subrecipients
which are pertinent to the award, in order to make audits, examinations, excerpts, and transcripts. The right also includes timely
and reasonable access to the recipient’s and subrecipient’s personnel for the purpose of interview and discussion related to such
documents.

17.0 REMEDIES FOR NONCOMPLIANCE
AMS may take one or more of the following remedies for your failure to comply with the award terms and conditions, including
reporting requirements, depending on the severity and duration of the non-compliance, according to applicable statutes,
regulations, and policies. You may have an opportunity to correct the deficiencies before AMS takes enforcement action; however,
AMS may take proactive steps to protect the Federal government’s interests, including placing special conditions on awards in
accordance with 2 CFR §200.338 such as requiring more frequent reporting or requiring the recipient to obtain technical or
management assistance.

Disallow Costs
AMS may disallow (deny use of funds) for all or part of the cost of the activity or action not in compliance. You may appeal this
decision by submitting a written request to AMS per section 18.0 Appeals of this document.

Withdrawal of Authorized Personnel Approval
AMS may withdraw its approval of the recipient project coordinator and/or other project representatives if the Agency concludes
that they are no longer qualified or competent to perform. If this occurs, AMS may request that you designate a new recipient
project coordinator or other key personnel. The decision to impose special conditions by withdrawing approval of the recipient
project coordinator or other key personnel, or otherwise is discretionary on the part of AMS and not subject to appeal.

Withholding of Payments
AMS may temporarily withhold cash payments pending correction of the deficiency by the recipient, in accordance with 2 CFR
§200.205. This decision is discretionary on the part of AMS and not subject to appeal.

Withholding of Support
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AMS may decide not to make an award within the current award cycle if a recipient failed to meet the terms and conditions of a
previous award or if continued funding would not be in the best interests of the Federal government. If an award is withheld
(denied) because a recipient failed to comply with the terms and conditions of a previous award, the recipient may appeal that
determination by submitting a written request to AMS per section 18.0 Appeals of this document.
Suspension or Termination
AMS generally will suspend (rather than immediately terminate) a grant and allow the recipient an opportunity to take appropriate
corrective action before terminating a project. AMS may terminate the grant if the recipient does not take appropriate corrective
action during the period of suspension. AMS may terminate the grant —without first suspending—if the deficiency is so serious as to
warrant immediate termination or if public health or welfare concerns require immediate action. AMS will provide the recipient a
notice of termination that will include the reason(s) for the termination and if the decision will be considered in evaluating future
applications. You may appeal the termination for cause decision as described in section 18.0 Appeals of this document.
AMS or the recipient may mutually terminate a grant award, partially or totally, if the two parties agree upon the termination
conditions, including the effective date and the portion to be terminated. If the recipient decides to terminate a portion of a grant
award, AMS may determine that the remaining portion of the grant award will not accomplish the purposes for which the grant
award was originally awarded. Contact your AMS point of contact should you decide to terminate all or part of your award.
When an award is terminated or partially terminated, the recipient is responsible for compliance with section 15.0 Close-Out
requirements.
Other options available to AMS include suspension or debarment under 2 CFR §180.

17.1 Special Conditions for High-Risk Recipients
This evaluation may incorporate results of the evaluation of the applicant's eligibility or the quality of its application. If AMS
determines that a Federal award will be made, special conditions that correspond to the degree of risk assessed may be applied to
the Federal award. Criteria to be evaluated must be described in the announcement of funding opportunity described in §200.203
Notices of funding opportunities.
AMS may impose additional award conditions per 2 CFR §200.205(b) on the recipient that correspond to the degree of risk assessed
under the following circumstances:
1.
2.
3.
4.

Based on a review of risk set forth in the criteria in 2 CFR §200.205; or
When a recipient has a history of failure to comply with the terms and conditions of the award; or
Failure to meet expected performance goals as described in 2 CFR §200.210; or
Is not otherwise responsible.

These specific award conditions are specified in 2 CFR §200.207. Note that AMS will promptly remove any special conditions once
the conditions that prompted them have been corrected.

18.0 APPEALS
The first step to appeal a decision to remedy non-compliance as described in 17.0 Remedies for Noncompliance, is to submit a
written request for review to the AMS grant program manager, as indicated in Box 13 of the AMS-33, unless directed otherwise. The
appeal letter must explain the decision or action you are appealing, describe what happened, and provide any documents that
support your appeal. AMS will review the notification and respond within 30 calendar days.
AMS encourages all recipients to try to resolve disputes by using alternative dispute resolution (ADR) techniques. ADR often is
effective in reducing the cost, delay, and contentiousness involved in appeals and other traditional ways of handling disputes. ADR
techniques include mediation, neutral evaluation, and other consensual methods.
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19.0 LIMIT OF FEDERAL LIABILITY
The maximum obligation of the AMS to the recipient is the amount indicated in the award as obligated by AMS. Nothing in these
award terms and conditions or in the other requirements of this award requires AMS to make any additional award of funds or limits
its discretion with respect to the amount of funding provided for the same or any other purpose. However, in the event that an
erroneous amount is stated in the award, the approved budget, or any supporting documentation relating to the award, AMS must
have unilateral right to make the correction and to make an appropriate adjustment in the AMS share of the award to align with the
Federal amount authorized.

20.0 FRAUD, WASTE, AND ABUSE
Anyone who becomes aware of the existence (or apparent existence) of fraud, waste, or abuse related to AMS grants or use of grant
funds should report this information to USDA. The USDA Office of the Inspector General (OIG) provides several means, including tollfree numbers, for this purpose. You may reach the OIG hotline by:
Office of the Inspector General, United States Department of Agriculture,
Attn: HOTLINE
PO Box 23399
Washington, DC 20026-3399
Telephone:
Fax:
E-mail:
Internet:

1-800-424-9121 (toll free) or 202-690-1202 (TDD);
202-690-2474
[email protected]
http://www.usda.gov/oig/hotline.htm

Fraud, waste, and abuse includes, but is not limited to, embezzlement, misuse, or misappropriation of grant funds or property, and
false statements and misrepresentation, whether by organizations or individuals. Examples are theft of grant funds for personal use;
using funds for non-grant-related purposes; theft of Federally owned property or property acquired or leased under a grant;
charging inflated building rental fees for a building owned by the recipient; submitting false financial reports; and submitting false
financial data in bids submitted to the recipient (for eventual payment under the grant). Callers are not required to give their names
and, if they do, OIG keeps their identities t confidential.
The Federal government may pursue administrative, civil, or criminal action under a variety of statutes that relate to fraud and false
statements or claims. Even if the Federal government does not award a grant, the applicant may be subject to penalties if the
information contained in or submitted as part of an application, including its certifications and assurances, is found to be false,
fictitious, or fraudulent.

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According to the Paperwork Reduction Act of 1995, an agency may not conduct or sponsor, and a person is not required to respond to a
collection of information unless it displays a valid OMB control number. The valid OMB control number for this information collection is 05810240. The time required to complete this information collection is estimated to average 2 hours per response, including the time for reviewing
instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of
information.

USDA’s Nondiscrimination Statement (effective 2015)
In accordance with Federal civil rights law and U.S. Department of Agriculture (USDA) civil rights regulations and policies, the USDA, its
Agencies, offices, and employees, and institutions participating in or administering USDA programs are prohibited from discriminating based on
race, color, national origin, religion, sex, gender identity (including gender expression), sexual orientation, disability, age, marital status,
family/parental status, income derived from a public assistance program, political beliefs, or reprisal or retaliation for prior civil rights activity, in
any program or activity conducted or funded by USDA (not all bases apply to all programs). Remedies and complaint filing deadlines vary by
program or incident.
Persons with disabilities who require alternative means of communication for program information (e.g., Braille, large print, audiotape, American
Sign Language, etc.) should contact the responsible Agency or USDA’s TARGET Center at (202) 720-2600 (voice and TTY) or contact USDA
through the Federal Relay Service at (800) 877-8339. Additionally, program information may be made available in languages other than English.
To file a program discrimination complaint, complete the USDA Program Discrimination Complaint Form, AD-3027, found online at
http://www.ascr.usda.gov/complaint_filing_cust.html and at any USDA office or write a letter addressed to USDA and provide in the letter all of
the information requested in the form. To request a copy of the complaint form, call (866) 632-9992. Submit your completed form or letter to
USDA by:
1) mail: U.S. Department of Agriculture Office of the Assistant Secretary for Civil Rights 1400 Independence Avenue, SW Washington,
D.C. 20250-9410;
2)

fax: (202) 690-7442; or

3)

email: [email protected].
USDA is an equal opportunity provider, employer, and lender.