AMS General Terms and Conditions

OMB No. 0581-0240

Agricultural Marketing Service (AMS)
Grants Division
General Terms and Conditions

MODIFICATION- This general terms and conditions is an updated version. It includes modified instructions for the
submission of claims and performance reports due to the transition of award agreements from ezFedGrants to Grant
Solutions and the Payment Management System of the Department of Health and Human Services. Pages modified:
3,5,6, and 18.

Effective Date: Updated October 2021

TABLE OF CONTENTS
1.0 OVERVIEW OF GENERAL TERMS AND CONDITIONS�����������������������������������������������������������������������������������������������������������3
1.1 Common Terms and Acronyms����������������������������������������������������������������������������������������������������������������������������������������������� 3
1.2 Order of Precedence��������������������������������������������������������������������������������������������������������������������������������������������������������������� 3
1.3 Definitions������������������������������������������������������������������������������������������������������������������������������������������������������������������������������� 3
2.0 FINANCIAL MANAGEMENT��������������������������������������������������������������������������������������������������������������������������������������������������4
2.1 Audit Requirements���������������������������������������������������������������������������������������������������������������������������������������������������������������� 5
2.2 Cost Sharing or Matching ������������������������������������������������������������������������������������������������������������������������������������������������������� 5
3.0 SUBRECIPIENT MONITORING & MANAGEMENT �������������������������������������������������������������������������������������������������������������������6
4.0 PAYMENTS ���������������������������������������������������������������������������������������������������������������������������������������������������������������������������6
4.1 Types of Payments������������������������������������������������������������������������������������������������������������������������������������������������������������������ 6
4.2 How to Request Payments���������������������������������������������������������������������������������������������������������������������������������������������������������� 6
4.3 Payment Source Documentation and Other Requirements���������������������������������������������������������������������������������������������������� 7
4.4 Timely Drawdown and Use of Grant Funds���������������������������������������������������������������������������������������������������������������������������� 7
5.0 INTEREST EARNED AND ADVANCES OF GRANTS FUNDS ��������������������������������������������������������������������������������������������������������7
6.0 PROGRAM INCOME���������������������������������������������������������������������������������������������������������������������������������������������������������������7
7.0 PROCUREMENTS ������������������������������������������������������������������������������������������������������������������������������������������������������������������8
8.0 ALLOWABLE COST AND ACTIVITIES�����������������������������������������������������������������������������������������������������������������������������������������8
8.1 Indirect Costs�������������������������������������������������������������������������������������������������������������������������������������������������������������������������� 8
8.2 Allowable and Unallowable Costs and Activities�������������������������������������������������������������������������������������������������������������������� 8
9.0 CHANGES REQUIRING PRIOR WRITTEN APPROVAL�������������������������������������������������������������������������������������������������������������� 15
9.1 Change in Key Personnel/Time Devoted to the Project������������������������������������������������������������������������������������������������������ 15
9.2 Change in Scope or Objectives�������������������������������������������������������������������������������������������������������������������������������������������� 16
9.3 One-Time Extension�������������������������������������������������������������������������������������������������������������������������������������������������������������� 16
9.4 Budget Change���������������������������������������������������������������������������������������������������������������������������������������������������������������������� 16
9.5 Pre-Award Costs�������������������������������������������������������������������������������������������������������������������������������������������������������������������� 16
9.6 Contracting or Subawarding for Activities Central to the Award’s Purpose(s)����������������������������������������������������������������������� 17
9.7 Specific Allowable Costs Prior Approvals������������������������������������������������������������������������������������������������������������������������������� 17
9.8 Changes to Recipient Name or Address����������������������������������������������������������������������������������������������������������������������������������� 17
9.9 Cost Share or Match – Changes in the Amount��������������������������������������������������������������������������������������������������������������������� 17
10.0 PERFORMANCE AND FINANCIAL REPORTS������������������������������������������������������������������������������������������������������������������������ 18
10.1 Interim Performance and Financial Reports����������������������������������������������������������������������������������������������������������������������� 18
10.2 Final Performance and Financial Reports���������������������������������������������������������������������������������������������������������������������������� 18
10.3 Review of Performance and Financial Reports�������������������������������������������������������������������������������������������������������������������� 18
10.4 Public Access to Records��������������������������������������������������������������������������������������������������������������������������������������������������������� 18
10.5 Disparaging Language and Protected PII����������������������������������������������������������������������������������������������������������������������������� 18
10.6 Overdue Reports��������������������������������������������������������������������������������������������������������������������������������������������������������������������� 19
11.0 ACKNOWLEDGEMENT OF SUPPORT���������������������������������������������������������������������������������������������������������������������������������� 19
12.0 PROPERTY MANAGEMENT������������������������������������������������������������������������������������������������������������������������������������������������ 19
12.1 Disposition of Real Property, Equipment and Supplies������������������������������������������������������������������������������������������������������� 19
13.0 ADMINISTRATIVE AND NATIONAL POLICY REQUIREMENTS������������������������������������������������������������������������������������������������ 20
14.0 CLOSEOUT������������������������������������������������������������������������������������������������������������������������������������������������������������������������� 21
14.1 Closeout Checklist��������������������������������������������������������������������������������������������������������������������������������������������������������������� 21
14.2 Unused and Returned Funds���������������������������������������������������������������������������������������������������������������������������������������������� 22
15.0 RECORD RETENTION��������������������������������������������������������������������������������������������������������������������������������������������������������� 22
16.0 ACCESS TO RECORDS���������������������������������������������������������������������������������������������������������������������������������� 22
17.0 REMEDIES FOR NONCOMPLIANCE������������������������������������������������������������������������������������������������������������������������������������� 22
17.1 Disallow Costs��������������������������������������������������������������������������������������������������������������������������������������������������������������������� 22
17.2 Withdrawal of Authorized Personnel Approval������������������������������������������������������������������������������������������������������������������� 22
17.3 Withholding of Payments���������������������������������������������������������������������������������������������������������������������������������������������������� 23
17.4 Withholding of Support������������������������������������������������������������������������������������������������������������������������������������������������������ 23
17.5 Suspension or Termination������������������������������������������������������������������������������������������������������������������������������������������������� 23
17.6 Special Conditions for High-Risk Recipients������������������������������������������������������������������������������������������������������������������������� 23
18.0 SITE VISITS������������������������������������������������������������������������������������������������������������������������������������������������������������������������ 23
19.0 APPEALS��������������������������������������������������������������������������������������������������������������������������������������������������������������������������� 23
20.0 LIMIT OF FEDERAL LIABILITY��������������������������������������������������������������������������������������������������������������������������������������������� 24
21.0 FRAUD, WASTE, AND ABUSE��������������������������������������������������������������������������������������������������������������������������������������������� 24
22.0 PROHIBITION OF CONFIDENTIALITY AGREEMENTS������������������������������������������������������������������������������������������������������������ 24
23.0 PAPERWORK REDUCTION�������������������������������������������������������������������������������������������������������������������������������������������������� 25
24.0 NONDISCRIMINATION STATEMENT������������������������������������������������������������������������������������������������������������������������������������ 25
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1.0 OVERVIEW OF GENERAL TERMS AND CONDITIONS
The Agricultural Marketing Service (AMS) Grants Division general terms and conditions apply to all AMS grant agreements and
provide the requirements for a recipient’s grant. The general terms and conditions are determined by statutory, regulatory, and
agency requirements, as well as by administrative policies. By accepting a grant agreement with AMS, recipients accept responsibility for all applicable terms and conditions. Failure to comply may result in actions described in section 17.0 Remedies for
Noncompliance.
AMS transitioned all agreements from ezFedGrants to Grant Solutions (GS) online grants and agreements management system
and to the Payment Management System (PMS). AMS grant recipients with ezFedGrant registration will receive a new username
and password from Grants Solution to access grant-related documents.
The Notice of Award references these terms and conditions and provides a link to the AMS website that contains all related
documents to manage the award.
Throughout the AMS general terms and conditions, when the word “must” is used it indicates a requirement. The use of the
word “should” or “may” indicates a best practice or recommended approach rather than a requirement and permits discretion.

1.1 Common Terms and Acronyms
Term/Acronym

Meaning

ACH

Automated Clearing House

AMS

Agricultural Marketing Service

AOR

Authorized Organization Representative/Official

CFDA

Catalog of Federal Domestic Assistance

CFR

Code of Federal Regulations

DUNS

Data Universal Numbering System

EFT

Electronic Fund Transfer

GS

Grant Solutions

FAIN

Federal Award Identification Number; also known as the Grant Agreement Number

FAPIIS

Federal Awardee Performance and Integrity Information System

GAAP

Generally Accepted Accounting Principles

GAGAS

Generally Accepted Government Auditing Standards

GSA

General Services Administration

NFE

Non-Federal Entity

OMB

Office of Management and Budget

PMS

Payment Management System of the Department of Health and Human Services

Protected PII

Protected Personally Identifiable Information

SAM

System for Award Management (SAM.gov)

SF

Standard Form

USDA

United States Department of Agriculture

1.2 Order of Precedence
If there is an inconsistency between award provisions, AMS will resolve the issue by giving precedence in the following order:
1.
2.
3.
4.
5.

Applicable laws and statutes of the United States, including any specific legislative provisions mandated in the statutory
authority for the award
Code of Federal Regulations
AMS General Terms and Conditions for Grants Agreements
Agency policy
Application documents

1.3 Definitions
AMS aligns its grant term definitions to the maximum extent possible with the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR § 200.1). Definitions referenced in this document are highlighted below:
3

•

Budget period means the time interval from the start date of a funded portion of an award to the end date of that funded
portion during which recipients are authorized to expend the funds awarded, including any funds carried forward or other
revisions pursuant to 2 CFR § 200.308.

•

Cost sharing or matching means the portion of project costs not paid by Federal funds or contributions (unless otherwise
authorized by Federal statute). See also 2 CFR § 200.306.

•

Federal award means the Federal financial assistance that a recipient receives directly from a Federal awarding agency or
indirectly from a pass-through entity, as described in 2 CFR § 200.101.The instrument setting forth the terms and conditions. The instrument is the grant agreement, cooperative agreement, other agreement for assistance or the cost -reimbursement contracted awarded under the Federal Acquisition Regulations.

•

Non-Federal entity (NFE) means a state, local government, Indian tribe, Institution of Higher Education (IHE), or nonprofit
organization that carries out the award as a recipient or subrecipient. These award terms and conditions apply to non-Federal entities.

•

Period of Performance means the total estimated time interval between the start of an initial Federal award and the
planned end date, which may include one or more funded portions or budget periods. Identification of the period of
performance in the Federal award per 2 CFR § 200.211(b)(5) does not commit the awarding agency to fund the award
beyond the currently approved budget period. In addition, the term includes any extension of the end date of the award,
such as a no-cost extension authorized by 2 CFR § 200.308, paragraph (d)(2). The period of performance is identified in
block 26 of the Notice of Award and will determine the effective commence date of the award.

•

Personally Identifiable Information (PII) means 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.

•

Program income means gross income earned by the NFE that is directly generated by a supported activity or earned as a
result of the Federal award during the period of performance except as provided in 2 CFR § 200.307(f).

•

Recipient means an entity, usually but not limited to non-Federal entities, that receives a Federal award directly from a
Federal awarding agency. The term recipient does not include subrecipients or individuals that are beneficiaries of the
award.

•

Subaward means an award provided by a pass-through entity to a subrecipient for the subrecipient to carry out part of
a Federal award received by the pass-through entity. It does not include payments to contractors or to individuals who
are beneficiaries of a Federal program. A subaward may be provided through any form of legal agreement, including a
contract.

•

Subrecipient means an entity, usually but not limited to non-Federal entities, that receives a subaward from a pass-through
entity to carry out part of a Federal award; but does not include an individual that is a beneficiary of such award. A subrecipient may also be a recipient of other Federal awards directly from a Federal awarding agency.

•

Unrecovered indirect cost (2 CFR § 200.306(c)) means the difference between the amount charged to the Federal award
and the amount that could have been charged to the Federal award under the potential recipient’s approved negotiated
indirect cost rate.

2.0 FINANCIAL MANAGEMENT
Recipients are required to meet the standards and requirements for financial management systems set forth or referenced in 2 CFR
§ 200.302.
The adequacy of a recipient’s financial management system is integral to their ability to account for grant expenditures and track
matching resources (if applicable). The recipient 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.
Recipients must expend and account for funds under an award in accordance with their own State laws and procedures. Financial
management systems and related records, of the grant recipient, and of any other entity involved in the grant, must be sufficiently
detailed to prepare reports, trace funds, and demonstrate that fund management complies with Federal statutes, regulations,
and these general and other program-specific terms and conditions.

4

A recipient’s financial management system must include:
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:
a.
b.
c.
d.

The Assistance Listing (formerly known as CFDA) title and number;
The Grant Agreement Number/ (FAIN) and Federal fiscal year awarded;
The name of the Federal Agency; and
The name of the pass-through entity, if applicable.

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, financial 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. Recipients 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 2 CFR § 200.305 requirements, which minimize the time elapsing between the
transfer of Federal funds to any NFE 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 the terms and conditions of this award.
A recipient must notify the AMS representative immediately when they discover financial management problems. Deficiencies in
the recipient’s financial management system, whether reported by the recipient or identified by AMS, may result in AMS imposing
special award conditions, such as a high-risk designation or other requirements for increased monitoring.

2.1 Audit Requirements
Recipients (other than Federal agencies and for-profit recipients) are responsible for obtaining audits in accordance with the 2 CFR
§ 200 Subpart F. These standards require any NFE that expends $750,000 or more in Federal awards during its fiscal year to have
a single or program-specific audit conducted for that year.
In addition to 2 CFR 200 Subpart F, the audit must be performed in accordance with the standards specified in GAGAS. Recipients
must follow a systematic method to ensure timely and appropriate resolution of audit findings and recommendations, whether
discovered because of a Federal audit or an audit initiated by the pass-through entity.
Recipients that expend $750,000 or more must submit the single audit or program-specific audit, along with required Form SFSAC, to the Federal Audit Clearinghouse in accordance with the submission requirements in 2 CRF 200, subpart F.  Such audits
must be submitted within 30 calendar days after receipt of the auditor’s report, or nine months after the end of the audit period.   The Form SF-SAC and reporting package MUST be submitted electronically to FAC at https://facweb.census.gov/. Any future
updates to the location of the FAC may be found at the OMB website.

2.2 Cost Sharing or Matching
If the grant agreement has specific cost sharing or matching requirements, the recipient must ensure that it complies with the
applicable provisions found in 2 CFR § 200.306. The recipient may use funds or other resources contributed by other non-Federal
entities to satisfy the cost sharing or matching requirement. 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. If a recipient volunteers cost sharing above the program’s required
amount, the total becomes a binding requirement of Federal award outlined in 2 CFR § 200.1.
Recipients must maintain documentation identifying:
•
•
•

The specific costs or contributions that constitute the cost- sharing or matching;
The funding source or contribution; and
How the appropriate amount of the contribution was determined for reporting purposes.

5

Recipients do not need to routinely provide documentation to AMS, but the documentation must be retained in the recipient
project files and made available upon request.
A recipient may use unrecovered indirect costs as part of cost sharing or matching. Recipients cannot use Federal funds or program
income to meet cost sharing or matching requirements.
The recipient must request prior approval from AMS before the amount of the approved cost share or match provided by the NFE
can change (see 9.9 Cost Share or Match--Changes in the Amount).

3.0 SUBRECIPIENT MONITORING & MANAGEMENT
Recipients are accountable for the performance of subawarded projects and the appropriate expenditure of Federal funds. This
includes maintaining the necessary documentation on all subawards and making it available to AMS upon request. Recipients must
include subaward activities in all performance and financial reports. In general, the requirements that apply to the award recipient
flow down to subrecipients.
If the recipient uses subawards, it 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. Recipients must evaluate each subrecipient’s risk
and establish monitoring activities as necessary to ensure each subrecipient complies with Federal statutes, regulations, and the
terms and conditions of the subaward. Monitoring activities must include but are not limited to:
•
•
•

Review of performance and financial reports;
Onsite reviews of subrecipient program operations; and
Providing training and technical assistance on programmatic activities.

Specifically, the recipient is responsible for including the requirements of the applicable AMS Grants Division General Terms and
Conditions in its subaward agreements as well as the provisions required under 2 CFR § 200.332. If requested by AMS, recipients
must provide evidence of a risk assessment plan.
If a subrecipient fails to comply with the terms and conditions of this award, the recipient may impose special award conditions,
including one or more of the corrective actions outlined in 2 CFR § 200.339.
Please see Appendix A to 2 CFR § 170 for additional reporting requirements concerning subawards.

4.0 PAYMENTS
4.1 Types of Payments
Advance – 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 and must
be accompanied by a written justification.
Reimbursements – Reimbursements are transfers of Federal funds to recipients after the recipient pays out funds for approved
project activities.

4.2 How to Request Payments
AMS grant recipients are required to request payments electronically through the PMS system. Recipients not already enrolled
must register in the system to request payments. Instructions for requesting a payment can be found in the Payment Management System.
AMS Grant Program Worksheet
If required by the grant agreement, an AMS Grant Program Worksheet must be attached in PMS when submitting a payment.
The Notice of Award provisions section will indicate if it is required to submit an AMS Grant Program Worksheet.
Receipt of Request by AMS
AMS will confirm receipt of the payment request, review the request, and communicate with the appropriate recipient
representatives.
Upon approval, payments will be made via EFT to the bank account specified by the recipient in SAM.gov. If the bank information
is incorrect or changes at any time during the grant period, it is the recipient’s responsibility to update their SAM.gov information
and notify AMS to ensure proper and timely deposit of funds.

6

4.3 Payment Source Documentation and Other Requirements
Recipients must collect and maintain source documentation associated with costs incurred as a result of the Federal award and
make it available to AMS upon request. Source documentation includes, but is not limited to, receipts, canceled checks, paid
bills, payrolls, time and attendance records, contracts, invoices, and subaward documents. If recipients pay a portion of the total
amount indicated on the source document, it must appropriately identify the specific expenses and total amount charged to the
grant.

4.4 Timely Drawdown and Use of Grant Funds
AMS may reduce grant agreement funds without further cause if the recipient does not draw down funds within the first year of
the grant period and at reasonable intervals thereafter.

5.0 INTEREST EARNED AND ADVANCES OF GRANTS FUNDS
In accordance with 2 CFR § 200.305 (b)(9), the recipient may retain interest earned on Federal payments deposited in interest-bearing accounts up to $500 per year for administrative expenses. Any additional interest earned must be remitted annually to
the Federal Payment Management System (PMS), which handles payments to the Treasury. The recipient must remit the interest
electronically using either an ACH network or a Fedwire Funds Service payment. If returning interest on Federal awards, the refund should:
a) Provide an explanation stating that the refund is for interest;
b) List the PMS payee account number(s) (PANs);
c) List the Federal award number(s) for which the interest was earned;
d) Make returns payable to the Department of Health and Human Services.
Submit the remittance using one of the following example formats:
ACH Return Example:
Routing Number:
Account Number:
Bank Name and Location:

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

Fedwire Returns Example: (Please note that the 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:

021030004
75010501
Federal Reserve Bank Treasurer NYC/Funds Transfer Division New York, NY

If a recipient does not have the ability to remit funds electronically, it should instead mail a check to the U.S Treasury approved lockbox, made payable to:
HHS Program Support Center
P.O. Box 530231
Atlanta, GA 30353-0231
Allow 4-6 weeks for check payments to be applied to the appropriate PMS account. For additional information please contact
PMS at 877-614-5533 or [email protected].

6.0 PROGRAM INCOME
Unless otherwise stated in the Notice of Award provisions section, AMS authorizes the use of program income through the
additive method (2 CFR § 200.307(e)(2)). Any program income generated during the grant period must be used to further the
objectives of the project. All program income must be recorded on the Federal Financial Report (SF-425) for the period in which
it was earned. Recipients are not accountable for program income earned after the grant period. 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 part with grant funds); and
Registration fees for conferences, workshops, etc.

Royalties or equivalent income earned from patents, inventions, trademarks, and copyrighted works are not subject to this
section.

7

7.0 PROCUREMENTS
Recipients may acquire commercially available goods and services in connection with a project. In doing so, the recipient must
have in place and use documented procurement procedures, consistent with applicable State, local and tribal laws and regulations. Recipients’ documented procurement procedures must conform to the procurement standards identified in 2 CFR §
200.317 through 2 C F R § 2 0 0 . 3 2 7 . To the greatest extent possible, the recipient should provide a preference for acquisition
of goods, products and services produced in the United States, per 2 CFR § 200.322.
•

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 §§ 200.321 through 200.323 and ensure that every purchase order or other contract
includes applicable provisions described in Appendix II of 2 CFR § 200.

•

All other non-Federal recipients must follow 2 CFR §§ 200.318 through 200.327.

•

The requirements of the Federal award also apply to any subcontract. The recipient is responsible for ensuring that all of
its contracts made in connection with the AMS project contain the applicable provisions described in Appendix II of 2 CFR
§ 200.

8.0 ALLOWABLE COST AND ACTIVITIES
8.1 Indirect Costs
Indirect costs as defined at (2 CFR § 200.1) 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 200.414 for additional information on determining if costs charged to the
award are direct or indirect.
Any NFE that does not have a current negotiated (including provisional) rate, except for those non-Federal entities described in
Appendix VII to Part 200—States and Local Government and Indian Tribe Indirect Cost Proposals, paragraph D.1.b, may elect to
charge a de minimis rate of 10 percent of Modified Total Direct Costs (MTDC) which may be used indefinitely. No documentation
is required to justify the 10% de minimis cost rate. Costs must be consistently charged as either indirect or direct costs but may
not be double charged or inconsistently charged as both (2 CFR § 200.403). If chosen, this methodology, once elected, must be
used consistently for all Federal awards until such time when a recipient chooses to negotiate for a rate, which the recipient may
apply to do at any time.
All applicants who elect to charge a de minimis rate of 10 percent must use the MTDC as the base. MTDC is defined in 2 CFR
§ 200.1 as all direct salaries and wages, applicable fringe benefits, materials and supplies, services, travel, and up to the first
$25,000 of each subaward (regardless of the period of performance of the subawards under the award). MTDC excludes equipment, capital expenditures, charges for patient care, rental costs, tuition remission, scholarships and fellowships, participant support costs, and the portion of each subaward in excess of $25,000. Other items may be excluded only when necessary to avoid a
serious inequity in the distribution of indirect costs, and with the approval of the cognizant agency for indirect costs.
If a NFE chooses to negotiate for a rate, the NFE must contact its cognizant Agency for indirect costs.
Federally Negotiated Indirect Cost Rates
Unless otherwise required by statute or regulation, AMS will accept Federally negotiated rates. These requirements flow down
through the pass-through entities affecting subawards.

8.2 Allowable and Unallowable Costs and Activities
The following table summarizes allowable and unallowable costs in common categories for AMS grant programs. This section is
not intended to be all-inclusive. The recipient should consult the Federal Cost Principles (Subpart E-Cost Principles of 2 CFR § 200)
for the complete explanation of the allowability of costs. If recipients have questions concerning the allowability of costs after
reviewing this section, they should contact their AMS representative.
Note: 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.

8

Cost Category

Affected
AMS Grant
Program(s)

Advisory Councils

ALL

Alcoholic Beverages

ALL with exceptions

Buildings and Land –
Construction

ALL

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 construction-related 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 and building space. However, lease
agreements to own (i.e., lease-to-own or rent-to-own) are not allowable.
The lease or rental agreement must terminate at the end of the grant
cycle.
A building is any permanent structure designed or intended for support,
enclosure, shelter, or protection of people, animals, or property, and having a permanent roof supported by columns or walls.

Conferences

ALL with exceptions

Allowable if the conference fulfills the purpose of a grant program’s
legislated purpose. Allowable conference costs paid by the non-Federal
recipient as a sponsor or host of the conference may include rental of
facilities, speakers’ fees, costs of meals (see Meals for restrictions), and
refreshments, local transportation, and other items incidental to such conferences with the exception of entertainment costs that are unallowable.
If registration fees are collected, the recipient must report fees as program
income (see Program Income).
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. The recipient should use the most cost-effective facilities, such
as State government conference rooms if renting a building or a room is
necessary.

Contingency Provisions

ALL

Unallowable for miscellaneous and similar rainy-day funds for events the
occurrence of which cannot be foretold with certainty as to the time or intensity, or with an assurance of their happening. Unallowable for working
capital for activities/items not already in place.

Contractual/Consultant Costs
(Professional Services)

ALL

Allowable subject to limitations. Contractual/consultant costs are expenses associated with purchasing goods and/or procuring services performed
by an individual or organization other than the recipient in the form of a
procurement relationship.
Allowable for contractor/consultant employee rates that do not exceed
the salary of a GS-15 step 10 Federal employee in the area (for more
information, visit the OPM website) and travel that is reasonable and
necessary. This does not include fringe benefits, indirect costs, or other
expenses. If rates exceed this amount, the recipient is required to justify
the allowability of the cost aligning with 2 CFR §§ 200.317-327.

Contributions or Donations

ALL

Unallowable for contributions or donations, including cash, property, and
services, made by the recipient to other entities. An NFE using grant funds
to purchase food or services to donate to other entities and/or individuals
is unallowable.

Electronic Benefit Transfer
(EBT) Machines

ALL

Unallowable for the purchase/lease of Supplemental Nutrition Assistance
Program (SNAP) EBT equipment.

Description, Guidance and Exceptions
Unallowable for costs incurred by advisory councils or committees.
Unallowable for alcoholic beverages unless the cost is associated with
fulfilling the purpose of the grant program and either approved in the
application or with prior written approval.

9

Cost Category

Affected
AMS Grant
Program(s)

Entertainment Costs

ALL with exceptions

Unallowable for entertainment costs including amusement, diversion, and
social activities and any costs directly associated with such costs (such as
bands, orchestras, dance groups, tickets to shows, meals, lodging, rentals,
transportation, and gratuities). Entertainment costs are defined in 2 CFR §
200.438.
Allowable where the specific cost is considered to meet the requirements
of the sponsored program and are authorized in the approved budget or
with prior written approval.

Equipment

ALL

Unallowable for acquisition costs of general purpose equipment or lease
agreements to own (i.e., lease-to-own or rent-to-own).
Allowable for rental costs of general purpose equipment when provided
in the approved budget or with prior written approval. Vehicles may be
leased but not purchased. The lease or rental agreement must terminate
at the end of the grant cycle.
For vehicle and equipment leases or rentals with an acquisition cost that
equals or exceeds $5,000, rates should be in light of factors such 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.
Allowable when provided in the approved budget or with prior written
approval for acquisition costs and rental costs of special purpose equipment provided the following criteria are met:
1) Necessary for the research, scientific, or other technical activities of the grant agreement;
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 be used solely to meet the legislative purpose of the
grant program and objectives of the grant agreement;
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 § 200.313
as applicable.
Definitions
Equipment is defined as tangible personal property (including information
technology systems) having a useful life of more than one year and a perunit acquisition cost that equals or exceeds the lesser of the capitalization
level established by the NFE for financial statement purposes, or $5,000.
Acquisition cost means the cost of the asset including the cost to prepare
the asset for its intended use. Acquisition cost for equipment is the net
invoice price of the equipment, including the cost of any modifications, attachments, accessories, or auxiliary apparatus necessary to make it usable
for its acquired purpose.
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, scientific,
or technical activities.

Description, Guidance and Exceptions

10

Cost Category

Affected
AMS Grant
Program(s)

Description, Guidance and Exceptions

Equipment – Information
Technology Systems and
Telecommunications

ALL

Unallowable for information technology systems having a useful life of
more than one year and a per-unit acquisition cost that equals or exceeds
the lesser of the capitalization level established in accordance with GAAP
by the recipient for financial statement purposes or $5,000. Acquisition
costs for software include those development costs capitalized in accordance with GAAP.
Information technology systems include computing devices, ancillary
equipment, software, firmware, and similar procedures, services (including support services), and related resources. Computing devices means
machines used to acquire, store, analyze, process, and publish data and
other information electronically, including accessories (or “peripherals”)
for printing, transmitting and receiving, or storing electronic information.
Examples of unallowable information technology systems include service
contracts, operating systems, printers, and computers that have an acquisition cost of $5,000 or more. See also special prohibition on the purchase
of certain telecommunications and video surveillance described in 2 CFR §
200.216.
Allowable for website development, mobile apps, etc., that are not
considered to be information technology systems but rather social media
applications.

Farm, Gardening, and
Production Activities and
Supplies

ALL with exceptions

Unallowable for farm, gardening, and production activities, materials,
supplies, and other related costs including but not limited to soil, seeds,
shovels, gardening tools, greenhouses, and hoop houses.
Allowable where the specific cost is considered to meet the requirements
of the sponsored program and is authorized in the approved budget or
with prior written approval.

Fines, Penalties, Damages and
Other Settlements

ALL

Fixed Amount Subawards

ALL with exceptions

Unallowable for cost related to fixed amounts subawards.
Allowable to meet the requirements of the sponsored program (noncompetitive) and with prior written approval. A pass-through entity may provide subawards based on fixed amounts up to the simplified acquisition
threshold, provided that the subawards meet the requirements for fixed
amount awards in 2 CFR § 200.201.

Fundraising and Investment
Management Costs

ALL

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 personnel involved in activities
to raise capital.

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

11

Cost Category

Affected
AMS Grant
Program(s)

General Costs of Government

ALL

Description, Guidance and Exceptions
Unallowable for:
1) Salaries and expenses of the Office of the Governor of a State or
the chief executive of a local government or the chief executive of
an Indian tribe;
2) Salaries and other expenses of a State legislature, tribal council,
or similar local governmental body, such as a county supervisor,
city council, school board, etc., whether incurred for purposes of
legislation or executive direction;
3) Costs of the judicial branch of a government;
4) Costs of prosecutorial activities unless treated as a direct cost to a
specific program if authorized by statute or regulation (however,
this does not preclude the allowability of other legal activities of
the Attorney General as described in 2 CFR § 200.435 Defense and
prosecution of criminal and civil proceedings, claims, appeals and
patent infringements); and
5) Costs of other general types of government services normally
provided to the general public, such as fire and police, unless
provided for as a direct cost under a program statute or regulation.

Goods or Services for Personal
Use

ALL

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

Indirect Costs – Unrecovered

ALL with exceptions

Unallowable for unrecovered indirect costs.
Allowable for projects with match requirements to use unrecovered indirect costs as part of cost sharing or matching.

Insurance and Indemnification

ALL

Allowable when provided in the approved budget or with prior written
approval as indirect costs for insurance and indemnification.

Lobbying

ALL

Unallowable as defined in 2 CFR § 200.450.

Meals

ALL

Unallowable for business meals when individuals go to lunch or dine
together although no need exists for continuity of a meeting. Such activity
is considered an entertainment cost.
Unallowable for conference attendee breakfasts. It is expected attendees
will have adequate time to obtain this meal on their own before a conference begins.
Unallowable for meal costs that duplicate a meeting participant’s per
diem or subsistence allowances.
Allowable for lunch or dinner meals if the costs are reasonable, and a
justification is provided that such activity maintains the continuity of the
meeting and to do otherwise will impose arduous conditions on the meeting participants.
Allowable for meals consumed while in official travel status. They are considered per diem expenses and should be reimbursed in accordance with
the organization’s established written travel policies.

Memberships, Subscriptions,
and Professional Activity Costs

ALL

Unallowable for costs of membership in any civic or community organization.
Allowable for costs of membership in business, technical, and professional
organizations when provided in the approved budget or with prior written
approval.

12

Cost Category

Affected
AMS Grant
Program(s)

Organization Costs

ALL

Unallowable for costs of investment counsel and staff and similar expenses incurred to enhance income from investments.
Allowable with prior approval for organization costs per 2 CFR § 200.455.

Participant Support Costs

ALL

Allowable when provided in the approved budget or with prior written approval for such items as stipends or subsistence allowances, and
registration fees paid to or on behalf of participants or trainees (but not
employees) in connection with approved conferences, training projects,
surveys, and focus groups.

Political Activities

ALL

Unallowable for development or participation in political activities, in
accordance with provisions of the Hatch Act (5 U.S.C.§§ 1501-1508 and
§§ 7324-7326).

Pre-Award Costs

ALL

Allowable when provided in the approved budget or with prior written
approval of such costs are necessary for efficient and timely performance
of the project’s 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. If charged to the award, these costs must be charged to the
initial budget period of the award, unless otherwise specified by AMS.

Description, Guidance and Exceptions

A recipient may incur pre-award costs 90 calendar days before the award.
Expenses more than 90 calendar days pre-award require prior approval.
These costs and associated activities must be included in the recipient’s
project narrative and budget justification. All costs incurred before the
award are at the potential recipient’s risk. The incurrence of pre-award
costs in anticipation of an award imposes no obligation on AMS to award
funds for such costs.
Printing and Publications

ALL

Allowable to pay the cost of preparing informational leaflets, reports,
manuals, and publications relating to the project; however, the printing of
hard copies is discouraged given the prevalence of electronic/virtual publication means. If charged to the award, these costs must be charged to the
final budget period of the award, unless otherwise specified by AMS.

Rearrangement and
Reconversion Costs

ALL

Allowable as indirect costs with prior approval for cost 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.
Rearrangement and reconversion costs are those incurred in restoring or
rehabilitating the non-Federal entity’s facilities to approximately the same
condition existing immediately before the start of the grant agreement,
less costs related to normal wear and tear.

Salaries and Wages

ALL

Allowable as part of employee compensation for personnel services in
proportion to the amount of time or effort an employee devotes to the
grant-supported project or program during the period of performance under the Federal award, including salaries, wages, and fringe benefits. Such
costs must be incurred under formally established policies of the organization, be consistently applied, be reasonable for the services rendered, and
be supported with adequate documentation.
Salary and wage amounts charged to grant-supported projects or programs for personal services must be based on an adequate payroll
distribution system that documents such distribution in accordance with
generally accepted practices of like organizations. Standards for payroll
distribution systems are contained in the applicable cost principles (other
than those for for-profit organizations).
Unallowable for salaries, wages, and fringe benefits for project staff who
devote time and effort to activities that do not meet the legislated purpose of the grant program.
13

Cost Category
Selling and Marketing
Costs – Promotion of an
Organization’s Image, Logo, or
Brand Name

Affected
AMS Grant
Program(s)
ALL

Description, Guidance and Exceptions
Unallowable for costs designed solely to promote the image of an organization, a general logo, or a general brand.
•

Promotional items could say “Buy STATE/COUNTY Grown Apples” but not “XYZ Grown”, which promotes XYZ generically.

•

A promotional campaign to increase producer sales of “STATE/
COUNTY Grown fruits and vegetables” is acceptable while increasing membership in “STATE/COUNTY Grown” generally is
not.

Selling and Marketing Costs –
Promotion of Venues that do
not Align with Grant Program
Purpose

ALL

Unallowable for costs for promotion of specific venues, tradeshows,
events, meetings, programs, conventions, symposia, seminars, etc. that do
not align with the legislated purpose of the grant program.

Selling and Marketing Costs
– Promotional Items, Gifts,
Prizes, etc.

ALL with exceptions

Unallowable for promotional items, swag, gifts, prizes, memorabilia, and
souvenirs.
Allowable with conditions to meet the requirements of the sponsored
agreement, in the approved application or with prior approval for marketing activities directly related to the funded project. Promotional items
include point-of-sale materials, promotional kits, signs or streamers,
automobile stickers, table tents, and placemats, or promotional items of a
personal nature (e.g., t-shirt, hats, etc.).

Selling and Marketing Costs –
Coupons, Incentives or Other
Price Discounts

ALL

Selling and Marketing Costs
– Food for Displays, Tastings,
Cooking Demonstrations

ALL with exceptions

Unallowable for purchasing food for displays, tastings, and cooking
demonstrations.
Allowable where the specific cost is considered to meet the programmatic purpose of the sponsored program and is authorized in the approved
budget or with prior written approval.

Selling and Marketing Costs –
General Marketing Costs

ALL with exceptions

Unallowable for costs designed solely to promote the image of an organization, general logo, or general brand.
Allowable for costs designed to promote products that align with the
purpose of the grant program.

Selling and Marketing Costs –
Sponsorships

ALL

Unallowable for costs associated with sponsorships. A sponsorship is a
form of advertising in which an organization uses grant funds to have its
name and/or logo associated with certain events and where the organization does not necessarily know how the funds associated with sponsorship
costs will be used. These costs also benefit only the organization offering
funding, limiting the beneficiaries to the sponsor organization.

Selling and Marketing Costs –
Use of Meeting Rooms, Space,
exhibits that do not Align with
Grant Program Purpose

ALL

Unallowable for costs associated with trade show attendance/displays,
meeting room reservations, and/or any other displays, demonstrations,
exhibits, or rental of space where activities do not specifically align with
the purpose of the grant program. See Conferences for more information.

Unallowable for costs of the value of coupon/incentive redemptions or
price discounts (e.g., the $5.00 value for a $5.00 clip-out coupon).
Allowable for costs associated with printing, distribution, or promotion
of coupons/tokens or price discounts (e.g., a print advertisement that
contains a clip-out coupon) as long as they benefit more than a single
program or organization.

14

Cost Category

Affected
AMS Grant
Program(s)

Description, Guidance and Exceptions

Supplies and Materials,
Including Costs of Computing
Devices

ALL

Allowable for costs incurred for materials, supplies, and fabricated parts
necessary to carry out a Federal award. Purchased materials and supplies
must be charged at their actual prices, net of applicable credits. Withdrawals from general stores or stockrooms should be charged at their actual net cost under any recognized method of pricing inventory withdrawals, consistently applied. Incoming transportation charges are a proper
part of materials and supplies costs. Only materials and supplies used for
the performance of a Federal award may be charged as direct costs.
A computing device is a supply if the acquisition cost is less than the lesser
of the capitalization level established by the recipient for financial statement purposes or $5,000, regardless of the length of its useful life. In the
specific case of computing devices, charging as a direct cost is allowable
for devices that are essential and allocable, but not solely dedicated, to
the performance of a Federal award. Where Federally donated or furnished materials are used in performing the Federal award, such materials
will be used without charge.

Training

ALL

Allowable when the training is required to meet the objectives of the
project or program, including training that is related to Federal grants
management.

Travel – Domestic and Foreign

ALL

Allowable for travel, when provided in the approved budget or with prior
written approval when costs are limited to those allowed by formal organizational policy and the purpose aligns with the legislated purpose of the
program.
The allowable travel cost of recipients that do not have formal travel policies and for-profit entities may not exceed those established by the Federal Travel Regulation, issued by General Services Administration (GSA),
including the maximum per diem and subsistence rates prescribed in
those regulations. If a recipient does not have a formal travel policy, those
regulations will be used to determine the amount that may be charged for
travel costs.

9.0 CHANGES REQUIRING PRIOR WRITTEN APPROVAL
The recipient may need to make modifications, such as budget, personnel, or contracts, to accomplish the objectives during the
period of performance. Recipients are required to request prior written approval for the following items from AMS in advance of a
change or obligation of funds. Requests for prior written approval must be submitted by the recipient project director and signed
by the AOR, if applicable. Every request for a prior written approval must include the following information:
1. Grant agreement number;
2. Project title;
3. Name of the recipient organization; and
4. Project point of contact name.
AMS will confirm receipt, review the request, and communicate with the recipient project director. The recipient project director
may revise the prior approval request to address any questions or concerns. Once accepted, AMS will email the recipient project
director with the acceptance of the request.

9.1 Change in Key Personnel/Time Devoted to the Project
Prior approval is required for changes in key personnel or if key personnel disengages from the project for a period of more than
three 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. Key personnel include the recipient project director or AOR listed in the Notice of Award as
well as other key project contributors. The request must include:
1.
2.
3.
4.
5.

The name of the individual(s) being replaced and the new individual name and contact information;
The qualifications (CV or resume) of the new individual(s);
The capacity in which the new individual will serve;
Written notification from the new individual signifying his/her willingness to serve on the project;
The effective date.

15

A change in key personnel may affect the project narrative, budget, or timeline. If it does, the recipient must include this in
their request by following the applicable guidance in this section.

9.2 Change in Scope or Objectives
Prior approval is required to modify the scope or objective of the project or program, including adding new project(s) or discontinuing project(s) (if applicable).
Prior written approval is required even if there is no associated budget revision that would require prior approval. The recipient
must use the same format/template to present this information that was used in the approved application with the changes noted. The request must include:
1. A description of the change in the scope or objective including what activities the new work replaces;
2. A revised narrative for the relevant portion of the approved project; and
3. The proposed dates of implementation (MM/YYYY – MM/YYYY).
A change in scope or objectives may affect the project narrative, outcome measures, budget (Federal and matching funds), or
timeline. If it does, the recipient must make revisions and include this in their request by following the applicable guidance in
this section.

9.3 One-Time Extension
If the grant activities cannot be completed within the grant agreement’s period of performance, the recipient must request written
approval to extend the grant agreement’s end date (no-cost extension of time) prior to the grant’s expiration. The recipient may
request a one-time extension of the period of performance of up to 12 months from the end date of the period of performance
(block 26 of the Notice of Award) unless specific program requirements prohibit the extension beyond the maximum allowed
period of performance. The request must be submitted no later than 10 days prior to the ending date of the grant agreement.
The request must include:
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.
Unused or unobligated funds at the end of the award are not in themselves justification to receive a no-cost time extension. AMS
will provide case-by-case extension approval, based on the written justification provided. If an extension is approved, the period
of performance will be amended to end at the completion of the extension.

9.4 Budget Change
Prior approval is required for a budget change if the Federal share of its grant agreement exceeds the Simplified Acquisition
Threshold as stated in 2 CFR § 200.88, (see block 20 and 33 on the Notice of Award) for the Federal award amount), and the
cumulative amount of a transfer among budgeted direct cost categories or between individual subawards exceeds or is expected
to exceed 10 percent of the total Federal award budget as last approved by AMS. If the Federal share of the Federal award is less
than the Simplified Acquisition Threshold, recipients do not need to request prior approval for budget changes. The request must
include:
1. A justification for the change; and
2. A description of the requested change that includes:
a. The proposed budget change,
b. The last approved budget, and
c. An updated budget for the affected cost categories.

9.5 Pre-Award Costs
As defined in 2 CFR §200.458, 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. If charged to the award, these costs must be charged to the initial budget period of the award, unless otherwise specified by AMS. Refer to Pre-Award Costs for more information. The request must include:
1. A brief description of the pre-award activities completed; and
2. An updated budget, using the same format for presenting the budget information that was used in the approved
application, clearly indicating the associated dollar amount of award funds and/or the value of any matching
resources expended during the pre-award period.

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9.6 Contracting or Subawarding for Activities Central to the Award’s Purpose(s)
Prior approval is required for a change that involves subawarding, transferring, or contracting out of any work under a Federal
award or executing a fixed amount subaward. This provision does not apply to the acquisition of supplies, materials, equipment,
or general support services. The request must include:
1. A brief description of and justification for the change;
2. A brief description of the NFE’s qualifications, and how their work will fulfill the project goals;
3. If a modification to the budget is required:
a. A description of the proposed modification,
b. The last approved budget, and
c. An updated budget for the affected cost categories using the same format as was used in the approved application with changes noted; and
4. If the third party was not identified in the original application, a description of the third party’s qualifications, how
its work will fulfill the project goals, and an itemized budget (if applicable) showing cost categories with appropriate
justification.

9.7 Specific Allowable Costs Prior Approvals
Prior approval is required for allowable costs (as referenced in 2 CFR §200.407) and for those not previously submitted in the
approved budget. See 8.2 Allowable and Unallowable Costs and Activities for more information. The request must include:
•
•

A description of and justification for the cost including how it furthers the objectives of the project; and
If applicable, a comparison between the most recent budget and the proposed budget as well as an updated budget
narrative of the affected cost categories. Recipients must use the same format for presenting the budget information
that was used in the approved application with changes noted.

9.8 Changes to Recipient Name or Address
If the recipient is contemplating changing the name or address of the recipient organization, the recipient is advised to contact its
AMS representative for additional information on how this action may affect the award. This refers to a change to the recipient
organization in block 1, “Recipient Name” on the fully executed Notice of Award. The DUNS number would remain the same,
while only the organization name or address would change. The request must include the new name or address of the recipient
organization and the effective date of the change.
NOTE: A request to have a new recipient organization (that has a new DUNS number) assume responsibility for the project is
not allowable.
Recipients are responsible for properly updating their registration within both DUNS and SAM.gov. The recipient must inform AMS
of any pending changes in its legal status, divestiture, or bankruptcy.

9.9 Cost Share or Match – Changes in the Amount
If the award has cost sharing or matching requirements, the recipient must request prior written approval to change the amount
of the 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 request must include:
1. A justification for the change;
2. Cash Commitment per year (if applicable) and Total Cash Match
3. In-kind Contribution per year (if applicable) and Total In-kind Match. Break down items into categories as applicable:
a. Salaries (employee name, title, duties, pay rate/hr., amount matched per year)
b. Items/Activities (fair market value per unit, how value determined (provide documentation), and amount
matched per year)
4. 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. Recipient must use the same format for presenting the match
verification that was used in the approved application; and
5. A description of the change that includes a comparison between the latest budget and the proposed budget as well
as an updated budget narrative of the affected cost categories to demonstrate that the overall required match will
be met. The recipient must use the same form/format for presenting the budget information that was used in the
approved application.
The recipient may use the Suggested Match Verification Template Letter as a starting point for developing its change request.
Please add any additional information requested above to the letter.

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10.0 PERFORMANCE AND FINANCIAL REPORTS
AMS requires submission of interim and final reports to demonstrate the progress made toward the completion of project goals,
objectives, and outcomes, as well as the grant agreement’s overall financial status. Performance reports must be formatted and
submitted using the approved templates or guidance, and machine-readable.
Recipients are required to submit an SF-425 Federal Financial Report with each performance report to account for their financial
expenditures during that reporting period.
All performance reports must be submitted through GS and financial reports must be submitted through PMS. The required
Interim Performance Report Template, Final Performance Report Template, and the SF-425 Federal Financial Report, along with
instructions and a sample financial report, can be found at www.ams.usda.gov/grants. Click on the applicable grant program
website, and then click on “How to Administer the Award” in the left menu bar.
If a grant agreement must be extended beyond the performance period stated on the Notice of Award additional reports may be
necessary depending on the length of the extension.
If performance or financial reports are prepared by a third party and/or subrecipient, it is the recipient AOR’s responsibility to
review and approve the report before forwarding it to AMS.

10.1 Interim Performance and Financial Reports
The Interim Performance Report and SF-425 Federal Financial Report are due annually no later than 90 calendar days after each
annual performance reporting period (block 26 of the Notice of Award) end date.
If the recipient completes the grant early, they may submit a Final Performance Report in lieu of an Interim Performance Report.

10.2 Final Performance and Financial Reports
The Final Performance Report and SF-425 Federal Financial Report must be submitted no later than 120 calendar days after the
performance period end date (block 26 of the Notice of Award). A subrecipient must submit to the pass-through entity no later
than 90 calendar days after the period of performance end date.

10.3 Review of Performance and Financial Reports
AMS will confirm receipt of performance and financial reports. These reports will be reviewed to ensure completeness and
progress toward meeting the project goals and measurable outcomes as well as compliance with Federal assistance regulations.
AMS will notify the recipient project director if additional information is required. The recipient project director is responsible for
adequately addressing all comments and questions prior to sending the revised report(s).

10.4 Public Access to Records
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 (5 U.S.C. 552) (FOIA) requests. The AMS website is the primary means to distribute results of each Federal award, although additional proposal/project information, within the regulations,
will be released if requested under the FOIA. Restrictions on release of records and information apply for protected PII or when
exempt from disclosure pursuant to the FOIA or the Privacy Act of 1974 (5 U.S.C. § 552a).
Since requested information may be made public, AMS encourages the recipient to minimize grammatical and spelling errors in
submitted forms and materials. AMS will not edit the reports beyond ensuring that the content is appropriate.

10.5 Disparaging Language and Protected PII
Recipients are prohibited from using AMS grant funds to conduct any activity that is false, misleading, or disparaging toward agricultural commodities or products or to disparage the mission, goals, and/or actions of another organization or individual.
Reports submitted to AMS must avoid the 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 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 performance reports should be limited to
the recipient project director’s name and e-mail address, as well as organization name, physical address, and telephone number.

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10.6 Overdue Reports
Events may occur that prevent you from submitting reports within the scheduled performance reporting dates. In such cases, the
recipient must inform AMS as soon as it is aware of problems, delays, or adverse conditions, preferably no less than 14 calendar
days before the due date. This disclosure must include a statement of the action taken or contemplated, and any assistance
needed to resolve the situation. If a justified request is submitted by the recipient, AMS may extend the due date for any performance report. If the late report submissions are due to issues of noncompliance, the enforcement actions described in section
17.0 Remedies for Noncompliance may be taken.

11.0 ACKNOWLEDGEMENT OF SUPPORT
Recipients are strongly encouraged to acknowledge USDA-AMS support through oral or written presentation. If the recipient
chooses to add an acknowledgment of support, it must read as follows:
Funding for [Project or Publication] was made possible by the U.S. Department of Agriculture’s (USDA) Agricultural Marketing
Service through grant [Insert Agreement Number]. 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.
Recipients are strongly encouraged to share with AMS success stories, videos, pictures, and other materials that highlight the
outcomes and accomplishments of their grant agreement. AMS will coordinate any public announcement, press release, press
interviews, web or social media posting with the AMS Public Affairs office.

12.0 PROPERTY MANAGEMENT
The title to real property, equipment, and supplies acquired or improved by the recipient under the award will vest upon acquisition in the recipient. Recipients must, at a minimum, provide the equivalent insurance coverage for real property and equipment
acquired or improved with Federal funds.
Recipients are expected to manage equipment whether acquired in whole or in part under the Federal award, until disposition
takes place, by maintaining property records that include a description of the property, a serial number or another identification
number, the source of funding for the property (including the FAIN), 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. This is in addition to the other requirements of use, management, and disposition of real property, equipment and
supplies acquired or improved by under a grant in accordance with 2 CFR §§ 200.311, 200.313 and 200.314.

12.1 Disposition of Real Property, Equipment and Supplies
When real property is no longer needed for the originally authorized purpose, the recipient must obtain disposition instructions
from AMS.
When original or replacement equipment acquired under a Federal award is no longer needed for the original project or program
or for other activities currently or previously supported by a Federal awarding agency, the recipient must request disposition
instructions from AMS and may be made as follows:
Items of equipment with a current per unit fair market value of $5,000 or less may be retained, sold, or otherwise disposed of
with no further responsibility to AMS.
Items of equipment with a current per unit fair market value in excess of $5,000 may be retained by the recipient or sold and
AMS compensated for its share.
If there is a residual inventory of unused supplies exceeding $5,000 in total aggregate value upon termination or completion of
the project or program and the supplies are not needed for any other Federal award, the recipient must retain the supplies for
use on other activities or sell them, but must, in either case, compensate AMS for its share.
In any of these cases, recipients acting on their own behalf or as the pass-through entity must submit to AMS via email either
1) an SF-428 C Tangible Personal Property Report Disposition Request/Report during the period of performance or 2) an SF-428
B Tangible Personal Property Final (Award Closeout) Report at closeout of the Federal award to report or request disposition
instructions. A sample Disposition Request/Report can be found at www.ams.usda.gov/grants. Click on the applicable grant
program website, and then click on “How to Administer the Award” in the left menu bar.

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AMS will review the request and provide disposition instructions for the real property, equipment and/or supplies. The disposition instructions will notify the recipient 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, the recipient is permitted to deduct and retain from the Federal share $500 or 10
percent of the proceeds, whichever is less, for its selling and handling expenses.

13.0 ADMINISTRATIVE AND NATIONAL POLICY REQUIREMENTS
You agree to comply with the following Federal statutes and regulations as applicable to your award. These include but are not
limited to the ones listed below. The full text of Code Federal Regulations references can be found at: eCFR-Code of Federal Regulations.
Federal statutes and regulations found on the SF-424B “Assurances –Non-Construction Programs.”
2 CFR § 25 – System for Award Management and Universal Identifier Requirements
2 CFR § 170 – Reporting Subaward and Executive Compensation Information
2 CFR § 175 – Award Term for Trafficking in Persons
2 CFR §§ 180 and 417 – OMB Guidelines to Agencies on Government-Wide Debarment and Suspension (Nonprocurement) and
USDA Nonprocurement Debarment and Suspension
2 CFR § 182 – Governmentwide Requirements for Drug-Free Workplace (Financial Assistance)
2 CFR § 183 – Never Contract with the Enemy
2 CFR § 200 – Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards
2 CFR § 400 – Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards
2 CFR § 415 – General Program Administrative Regulations
2 CFR § 416 – General Program Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments
2 CFR § 418 – New Restrictions on Lobbying
2 CFR § 421 – Requirements for Drug-Free Workplace (Financial Assistance)
2 CFR § 422 – Research Institutions Conducting USDA-Funded Extramural Research; Research Misconduct
7 CFR § 1, subpart A – Official Records (Freedom of Information Act)
7 CFR § 1(b) – National Environmental Policy Act
7 CFR § 3 – Debt Management (OMB Circular No. A-129)
7 CFR § 15, subpart A – Nondiscrimination in Federally-Assisted Programs of the Department of Agriculture—Effectuation of Title VI of
the Civil Rights Act of 1964
7 CFR § 331 and 9 CFR § 121—USDA implementation of the Agricultural Bioterrorism Protection Act of 2002
37 CFR § 401 – Rights to Inventions made by Nonprofit Organizations and Small Business Firms under Government Grants, Contracts, and Cooperative Agreements
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 subpart 31.2 – Contracts with Commercial Organizations
8 U.S.C. § 1324a – Unlawful employment of aliens

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29 U.S.C. § 794 – Nondiscrimination under Federal grants and programs
41 U.S.C. § 22 – Interest of Member of Congress
41 U.S.C. § 4712 – Pilot program for enhancement of contractor protection from reprisal for disclosure of certain information
44 U.S.C. § 3551 et seq. (P.L. 107-347) – Federal Information System Security Management Act of 2002 (FISMA)
EO 13166, Improving Access to Services for Persons with Limited English Proficiency, take reasonable steps to ensure that LEP persons have meaningful access to programs in accordance with LEP Implementation Strategy for AMS’ Federally-Assisted Programs.
EO 13798, Promoting Free Speech and Religious Liberty. As a recipient you must not discriminate against sub recipients on the
basis of their religious character.
EO 13858, Strengthening Buy- American Preferences for Infrastructure Project (Except for Section 5, revoked by EO 14005)
EO 13864, Improving Free Inquiry, Transparency, and Accountability at Colleges and Universities
EO 13933, Protecting American Monuments, Memorials, and Statues and Combating Recent Criminal Violence
EO 13988, Preventing and Combating Discrimination on the Basis of Gender Identity or Sexual Orientation
EO 13991, Protecting the Federal Workforce and Requiring Mask-Wearing
EO 13999, Protecting Worker Health and Safety
EO 14005, Ensuring the Future Is Made in All of America by All of America’s Workers
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 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.

14.0 CLOSEOUT
AMS will close out the Federal award when it determines that all applicable administrative actions and all required work of the
Federal award are completed by the recipient, as provided in 2 CFR § 200.344. If the recipient fails to complete the requirements,
AMS will proceed to close out the Federal award with the information available. When an award is closed out, terminated, or
partially terminated, the recipient is responsible for compliance with the requirements in 2 CFR § 200.345.
The recipient must submit, no later than 120 calendar days after the period of performance end date, all financial, performance,
and other reports as required by these award terms and conditions. A subrecipient must submit this information to the passthrough entity, no later than 90 calendar days after the end of the period of performance.

14.1 Closeout Checklist
The following documents must be submitted to and approved by AMS to successfully close out a grant:
1. Final Performance Report Template (see Section 10.2) and any project deliverables (e.g., photos, brochures, other
print materials from the project);
2. Final SF-425 Federal Financial Report (Section 10.2);
3. Final SF-270 Request for Advance or Reimbursement (see Section 4.2 and subsections);
4. Refund check for any unused funds, if applicable (see Section 14.2);
5. SF-428 B Tangible Personal Property Final Report, if applicable (see Section 12.1); and
6. Audit report, if applicable (see Section 2.1)
Requirements for Reapplication
Upon receiving and accepting all closeout documents, AMS will issue a closeout letter. If the recipient fails to complete the requirements, AMS will proceed to close out the Federal award with the information available. Failure to submit all closeout reports
within one year of the period of performance end date will result in AMS reporting the recipient’s material failure to comply with
these award terms and conditions to FAPIIS and may result in exclusion from future AMS grant consideration.

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14.2 Unused and Returned Funds
Before submitting an SF-425 for a grant that has been completed or terminated, the recipient must liquidate all financial obligations incurred under the Federal award no later than 120 calendar days after the performance period end date of the grant agreement. If the recipient has a balance of funds that AMS previously disbursed and that the recipient did not obligate by the performance end date of the grant agreement, the recipient 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 strongly encouraged.
Send payments by Express mail or courier submission to:
[Grant Program Name]
Attn: [Grant Program Name] Team Lead
USDA, Agricultural Marketing Service
Transportation and Marketing Program
1400 Independence Avenue, SW
Room 1098–South Building, Stop 0264
Washington, DC 20250-0264

15.0 RECORD RETENTION
The recipient must retain all records relating to the grant for a period of three years after the final SF-425 is received by AMS
or until final resolution of any audit finding or litigation. See 2 CFR § 200.334 for exceptions and qualifications to the retention
requirement and period for other types of grant-related records, including property records.
The recipient should, whenever practicable, collect, transmit, and store grant-related information in open and machine-readable formats rather than in closed formats or on paper, in accordance with applicable legislative requirements (EO 13642). A
machine-readable format is a standard computer language (not English text) format that can be read automatically by a web
browser or computer system.

16.0 ACCESS TO RECORDS
As described in 2 CFR § 200.337, AMS, Inspectors General, the Comptroller General of the United States, and the pass-through
entity, or any of their authorized representatives, must have right of access to any documents, papers, or records of recipients
and subrecipients which are pertinent to the Federal 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 interview and discussion
related to such documents.

17.0 REMEDIES FOR NONCOMPLIANCE
AMS may take one or more of the following remedies for a recipient’s failure to comply with the U.S. Constitution, Federal
statutes, regulations, or the award General Terms and Conditions, including reporting requirements, depending on the severity
and duration of the noncompliance. In addition to the options listed below, AMS may take other remedies that are legally available,
including initiating suspension or debarment under 2 CFR § 180.
The recipient may be given 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 specific conditions on awards as described
in 2 CFR § 200.208 and in accordance with 2 CFR § 200.339, such as requiring more frequent reporting or requiring the recipient
to obtain technical or management assistance.

17.1 Disallow Costs
AMS may disallow (deny the use of funds) for all or part of the cost of the activity or action that is not in compliance.

17.2 Withdrawal of Authorized Personnel Approval
AMS may withdraw its approval of the Authorized Representative and/or other project representatives if the Agency concludes
that they are no longer qualified or competent to perform their duties. If this occurs, AMS may request that the recipient
designate new Authorized Representative or other key personnel. The decision to impose special conditions by withdrawing
approval of the Recipient Authorized Representative or other key personnel, or otherwise, is discretionary on the part of AMS
and not subject to appeal.
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17.3 Withholding of Payments
AMS may temporarily withhold cash payments pending correction of the deficiency by the recipient, in accordance with 2 CFR §
200.206. This decision is discretionary on the part of AMS and not subject to appeal.

17.4 Withholding of Support
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.

17.5 Suspension or Termination
AMS may terminate an award in whole or in part per 2 CFR §200.340. AMS generally will suspend (rather than immediately
terminate) a grant and allow the recipient an opportunity to take appropriate corrective actions before terminating a grant
agreement. AMS may terminate the grant if the recipient does not take appropriate corrective actions during the period of suspension or if the grant no longer effectuates the program goals or agency priorities. AMS may also terminate the grant without
first suspending if the deficiency warrants immediate termination or if public health or welfare concerns require immediate
action. AMS will provide the recipient a notice of termination that includes the reason(s) for the termination and if the decision
will be considered in evaluating future applications.
AMS and the recipient may mutually terminate a grant agreement, partially or totally, if the two parties agree upon the termination conditions, including the effective date and the portion to be terminated. The recipient must contact the AMS representative should it decide to terminate all or part of its award. If the recipient decides to terminate a portion of a grant agreement,
AMS may determine that the remaining portion of the grant agreement will not accomplish the purposes for which the grant
agreement was originally awarded. In that case, AMS will advise the recipient of the possibility of termination of the entire
grant and allow the recipients to withdraw its request for partial termination. If the recipient does not withdraw its request for
partial termination, AMS may initiate a procedure to terminate the entire grant, which may include reporting the situation to
FAPIIS
When an award is terminated or partially terminated, the recipient is responsible for compliance with section 14.0 Closeout
requirements.

17.6 Special Conditions for High-Risk Recipients
AMS will evaluate the degree of risk associated with a given recipient and may impose additional award conditions per 2 CFR §
200.206(b) on the recipient that corresponds to the degree of risk assessed. This risk assessment may incorporate the results of
the evaluation of the applicant’s eligibility or the quality of its application. These specific award conditions are specified in 2 CFR
§ 200.208. AMS will promptly remove any special conditions once the conditions that prompted them have been corrected and
verified.

18.0 SITE VISITS
AMS may conduct periodic site visits, at its own expense, to review project accomplishments and monitor progress, to review financial and performance records, organizational procedures, and financial control systems, and to provide technical
assistance as required. AMS will make every effort to notify the grant recipient at least two weeks in advance of any trip to
the AMS-funded project location. If AMS makes any official site visit on the premises of a recipient or a subrecipient(s), the
recipient must provide, and must require its subrecipients to provide, all reasonable facilities and assistance for the safety and
convenience of government officials in the performance of their duties. All site visits and evaluations are expected to be performed in a manner designed to not unduly delay the implementation of the project.

19.0 APPEALS
The recipient may appeal an AMS decision to remedy non-compliance by submitting a written request for review to the Federal
Agency Project contact, identified in block 9 and 10 of the Notice of Award, unless directed otherwise. The appeal letter must explain the decision or action it is appealing, describe what happened, and include any documentation that substantiates the 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. The benefits
of using ADR can include decreasing time, cost, and other resources expended in resolving conflicts and increasing customer
satisfaction. ADR techniques include mediation, early neutral evaluation, and other consensual resolution methods. Recipients
must obtain their own mediator.

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20.0 LIMIT OF FEDERAL LIABILITY
The maximum obligation of AMS to a recipient is the amount indicated in the award. Nothing in these award terms and conditions
or in the other requirements of the 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, if an erroneous amount is stated in the award,
the approved budget, or supporting documentation relating to the award, AMS has a 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.

21.0 FRAUD, WASTE, AND ABUSE
Anyone who witnesses or has knowledge 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 Inspector General (OIG) provides several means, including toll-free numbers, for this purpose. Recipients can reach the OIG Hotline in the following ways:
Online: www.usda.gov/oig/hotline
Write: United States Department of Agriculture
Office of Inspector General
PO Box 23399
Washington, DC 20026-3399
Call: 1-800-424-9121 (toll free) or 202-690-1202 (TDD)
Fax: 202-690-2474
Fraud, waste, and abuse include, but are 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 the identity of complainants protected under the provisions of the
Whistleblower Protection Act of 1989 and the Inspector General Act of 1978.
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.

22.0 PROHIBITION OF CONFIDENTIALITY AGREEMENTS
The prohibition of using funds under grants and cooperative agreements with entities that require certain internal confidentiality
agreements are described below.
(a) The recipient may not require its employees, contractors, or subrecipients seeking to report fraud, waste, or abuse to sign or
comply with internal confidentiality agreements or statements prohibiting or otherwise restricting them from lawfully reporting that waste, fraud, or abuse to a designated investigative or law enforcement representative of a Federal Department or
Agency authorized to receive such information.
(b) The recipient must notify its employees, contractors, or subrecipients that the prohibitions and restrictions of any internal
confidentiality agreements inconsistent with paragraph (a) of this award provision are no longer in effect.
(c) The prohibition in paragraph (a) of this award provision does not contravene requirements applicable to any other form issued
by a Federal department or Agency governing the nondisclosure of classified information.
(d) If the Government determines that the recipient is not in compliance with this award provision, it:
(1) Will prohibit the recipient’s use of funds under this award, in accordance with sections 743, 744 of Division E of the
Consolidated Appropriations Act, 2016, (Pub. L. 114-113) or any successor provision of law; and
(2) May pursue other remedies available for the recipient’s material failure to comply with award terms and conditions.

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23.0 PAPERWORK REDUCTION
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 currently valid OMB control number. The valid OMB control
number for this information collection is 0581-0240. The time required to complete this information collection is estimated to
average 2.22 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.

24.0 NONDISCRIMINATION STATEMENT
USDA is an equal opportunity provider, employer, and lender. Recipients should follow the instructions found at https://www.usda.
gov/non-discrimination-statement.

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