United States Administration And EPA 202-B-94-001
Environmental Protection Resources Management May 1994
Agency (3903F)
&EPA Managing Your Financial
Assistance Agreement
Project Officer Responsibilities
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TABLE OF CONTENTS
INTRODUCTION
MODULE I
MODULE II
MODULE V
BACKGROUND
REQUIREMENTS GOVERNING
ASSISTANCE AGREEMENTS
MODULE III PREAPLICATION/APPLICATION PHASE
MODULE IV AWARD PHASE
PROJECT ADMINISTRATION AND
MANAGEMENT PHASE
MODULE VI CLOSEOUT PHASE
MODULE VII AUDIT
MODULE VIII INTERAGENCY AGREEMENTS
APPENDIX A
APPENDIX B
APPENDIX C
APPENDIX D
FEDERAL GRANT AND COOPERATIVE
AGREEMENT ACT
POLICY FOR DISTINGUISHING BETWEEN
ASSISTANCE AND ACQUISITION
EPA INVOLVEMENT IN GRANTEE
PERSONNEL AND CONTRACTOR SELECTION
UNDER GRANTS AND COOPERATIVE
AGREEMENTS
40 CFR PART 30, "GENERAL REGULATION
FOR ASSISTANCE AGREEMENTS FOR
OTHER THAN STATE AND LOCAL
GOVERNMENTS"
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APPENDIX E
APPENDIX F
APPENDIX G
APPENDIX H
APPENDIX I
APPENDIX J
APPENDIX K
APPENDIX L
APPENDIX M
APPENDIX N
40 CFR PART 31, "UNIFORM
ADMINISTRATIVE REQUIREMENTS FOR
GRANTS AND COOPERATIVE
AGREEMENTS TO STATE AND LOCAL
GOVERNMENTS
LIST OF EPA ASSISTANCE PROGRAMS
(CFDA Number, Title, Statutory Authority,
GICS Program Code, and Delegation Of
Authority Number)
GUIDE: "DELEGATIONS OF AUTHORITY --
WHAT MANAGERS NEED TO KNOW"
40 CFR PART 33, "PROCUREMENT UNDER
ASSISTANCE AGREEMENTS
40 CFR PART 40, "RESEARCH AND
DEMONSTRATION GRANTS"
40 CFR PART 45, "TRAINING ASSISTANCE"
40 CFR PART 46, "FELLOWSHIPS"
40 CFR PART 47, "NATIONAL
ENVIRONMENTAL EDUCATION GRANTS"
EPA ORDER 1000.25, "USE OF RECYCLED
PAPER"
EPA ORDER 5730.1: "POLICY AND
PROCEDURES FOR FUNDING ASSISTANCE
AGREEMENTS
PERFORMANCE BASED ASSISTANCE
POLICY
CARRYOVER POLICY (COMPTROLLER
POLICY ANNOUNCEMENT 88-09)
USE OF DISADVANTAGED BUSINESS
ENTERPRISES (DBE)
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APPENDIX O POLICY ON THE TIMELY AWARD OF
ASSISTANCE FUNDS FOR CONTINUING
ENVIRONMENTAL PROGRAMS
APPENDIX P STATE GRANT GUIDANCE, "INTEGRATION
OF POLLUTION PREVENTION"
APPENDIX Q SF 424, "APPLICATION FORM"
APPENDIX R LIST OF HEADQUARTERS AND REGIONAL
MBE/WBE COORDINATORS
APPENDIX S OFFICIAL PROJECT AND GMO FILES
APPENDIX T CLOSEOUT POLICY FOR ASSISTANCE
AGREEMENTS
APPENDIX U PERSONAL PROPERTY UNDER EPA
ASSISTANCE AGREEMENTS
APPENDIX V EPA ORDER 2200.4: "REVIEW PROCESS FOR
SCIENTIFIC, INFORMATIONAL AND
EDUCATIONAL DOCUMENTS"
APPENDIX W SAMPLE INTERAGENCY AGREEMENT
SUBJECT INDEX
GLOSSARY
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ASSISTANCE
PROJECT OFFICERS
TRAINING COURSE
INTRODUCTION
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WHY AN ASSISTANCE PROJECT
OFFICERS COURSE?
• TRAINING IDENTIFIED AS A
WEAKNESS
• ROLES AND RESPONSIBILITIES
NOT IDENTIFIED ELSEWHERE
• CERTIFICATION OF ASSISTANCE
PROJECT OFFICERS
VIEWGRAPH # 1
TITLE: Why an Assistance Project Officers Course?
KEY POINTS:
A large part of EPA's mission is accomplished by awarding
extramural funds to other organizations to conduct environmental
programs and or projects.
EPA (and other Federal agencies) award funds through one of two
methods - "acquisition" or "assistance." The basic difference
between acquisition and an assistance is the relationship between
the parties. If an activity is funded to meet an internal EPA need
e.g., a specific report to Congress, purchase of furnishings for EPA
staff, then an acquisition relationship exists and EPA's direct
procurement requirements (e.g., the Federal Acquisition
Regulations) apply . If the activity is funded to benefit someone
other than the Federal government, e.g., build awastewater
treatment plant, then an assistance relationship exists and EPA's
rules which apply to assistance programs apply. It is the latter
situation which is the subject of this course.
• Because of Congressional Hearings, inquiries on contract
management, and recent audits, the area of assistance
management is receiving increased scrutiny from EPA
management.
• EPA obligates approximately $3.5 Billion (or about 50% of its
budget) through assistance agreements.
The Project Officer (PO) plays a key role in assuring the proper
expenditure of these funds.
Several recent assessments identified PO training as one of the
highest needs in the assistance management area.
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VIEWGRAPH # 1 (Continued)
TITLE: Why an Assistance Project Officers Course?
KEY POINTS:
• This course identifies the administrative responsibilities of
the. Project Officers (PO), Grants Management Offices (GMO),
Financial Management Offices (FMO), and other players
involved in the management of assistance agreements.
• This course will provide:
- A framework.for the POs' responsibilities;
- Awareness of the interactions between the POs and others;
- Listing of the cradle-to-grave responsibilities of POs; and a
- Groundwork for future PO Certification.
This course will not provide specific PO programmatic
requirements. This is a responsibility of the National Program
Manager (NPM) for each program. Some NPMs (e.g., Office of
Water, §106 grant program and the Office of Research and
Development) are developing training courses on the
programmatic aspects of their POs1 responsibilities.
This manual is organized into 8 modules:
- The first module provides background information;
- The second module discusses sources of administrative
requirements governing assistance;
- The third through sixth modules cover the phases from
preapplication through closeout;
- The seventh module covers audits of assistance awards; and
- The eighth module addresses Interagency Agreements
(lAGs).
The modules are followed by the Appendices. Items in the
Appendices are cross-referenced throughout the text of the
modules.
• A Subject Index and Glossary are included and follow the
Appendices.
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MODULE I
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ASSISTANCE
PROJECT OFFICERS
TRAINING COURSE
MODULE I
BACKGROUND
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OVERVIEW
Federal Grant and Cooperative
Agreement Act of 1977
Competition In Assistance
Agreements
Conflicts of Interest
VIEWGRAPHI1
TITLE: OVERVIEW
KEY POINTS:
In this module we will discuss the following:
• The Federal Grant and Cooperative Agreement Act of 1977.
- The difference between a contract and an assistance
agreement;
- The types of assistance agreements (grants and cooperative
agreements) and the difference between a grant and a
cooperative agreement;
- When a contract, grant, cooperative agreement should/must be
used; and
- The Project Officer's (PO)/Program's role in making the. decision
of which instrument to use;
• Competition in the selection of recipients.
- When it is required; and
- The Office of Research and Development requirements for
research awards.
• Conflicts of interest.
- The requirements on Federal employees;
- The restrictions on EPA involvement in recipient decisions; and
- The requirements on recipients.
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FEDERAL GRANT AND COOPERATIVE
AGREEMENT ACT OF 1977
• DISTINGUISHES BETWEEN
PROCUREMENT AND ASSISTANCE
• ESTABLISHES DECISION CRITERIA
• DISTINGUISHES BETWEEN GRANTS
AND COOPERATIVE AGREEMENTS
VIEWGRAPH # 2
TITLE: Federal Grant And Cooperative Agreement
Act of 1977
KEY POINTS:
Various Federal statutes authorize and/or direct EPA to carry out
specific environmental activities. These statutes may specify
whether the activities may be accomplished in-house (using EPA
staff) or by funding outside parties. The Federal government
awards extramural funding in one of two ways - either through a
procurement contract (acquisition) or through a grant or cooperative
agreement (assistance).
In the 1970's, Congress was concerned over the perceived misuse of
assistance agreements. Specifically, Congress was concerned that
agencies were misusing the assistance agreements to circumvent
competition and other procurement rules, and also applying
unnecessarily burdensome contract paperwork requirements to
non-procurement transactions.
To address these problems, and ensure consistent and uniform
agency practice, Congress passed the Federal Grant and
Cooperative Agreement Act (see Appendix A) Act in 1977.
The purpose of the Act is to establish governmentwide criteria
for determining the appropriate legal instrument to use for an
extramural funding activity.
5/23/94 '-2
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VIEWGRAPH # 2 (continued)
TITLE: Federal Grant And Cooperative Agreement
Act of 1977
KEY POINTS:
The Act distinguishes between procurement (acquisition) and
assistance, based on the principle purpose of the relationship
between the parties. If the principle purpose of the activity being
funded (i.e., "relationship") is to provide something for the direct
benefit or use of the Federal government, then a contract is the
appropriate legal instrument to use. If the principle purpose of the
activity is to provide something of value to someone other than the
Federal government (e.g., State, local government, university), then
an assistance agreement may be used.
It is important to note that the Act does not expand an Agency's
authority to award assistance agreements. EPA has no inherent
authority to award assistance agreements; such authority must be
found in EPA's statutes and does not derive from the Federal Grant
and Cooperative Agreement Act. On the other hand, unless
legislatively prohibited, every Agency has inherent authority to enter
into contracts as long as the procurement is related to the Agency's
mission.
Whether to use a contract or an assistance agreement is a
decision which should be made in the planning process, and
certainly before the Program develops any annual guidance or
requests solicitations. Offices and laboratories should review
all contemplated projects as soon as possible for the purpose
of determining whether the nature of the project activity is
acquisition or assistance. If it is unclear whether a project is
acquisition or assistance, the office or laboratory should
contact the responsible GMO/Award Official for assistance.
Please do not wait until the award package is ready to send to the
GMO [or Senior Resource Official (SRO) if appropriate] to justify an
assistance relationship. If the Program (PO or SRO) has a problem
justifying an assistance relationship, the GMO and auditors will also
have a problem.
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DECISION MAKING RESPONSIBILITIES
• APPROVAL OFFICIAL
• SENIOR RESOURCE OFFICIAL
• GRANTS MANAGEMENT OFFICE
• AWARD OFFICIAL
VIEWGRAPH #3
TITLE: Decision Making Responsibilities
KEY POINTS:
Approval Official
Each Approval Official must determine whether a proposed
relationship is one of acquisition or assistance. In making this
determination, each EPA office and laboratory will use the
criteria set forth in the "Policy for Distinguishing Between
Acquisition and Assistance." (see Appendix B).
In those limited occasions where the Approval Official has the
responsibility of overseeing an award originating in another
office, then the Approval Official's responsibility is limited to
ensuring that the originating office states it has determined an
assistance relationship exists based on the criteria set forth in
the policy.
The Decision Memorandum (see Module 4) must state that
the assistance instrument is appropriate based on the
criteria in the policy.
Senior Resource Official:
The Senior Resource Official will concur in the Program's
decision to use a contract or assistance agreement before the
award package is sent to the GMO.
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VIEWGRAPH #3 (Continued)
TITLE: Roles and Responsibilities
KEY POINTS:
Grants Management Office
• The GMO will review the determination of the office or laboratory
and decide whether to concur. The GMO will make this decision in
conjunction with the Office of General Counsel, Grants and.
Intergovernmental Division (or Regional Counsel), if necessary.
The GMO will return all completed assistance application
packages that are acquisition activities to the office or
laboratory and say why it cannot award the project as an
assistance project.
Award Official
The Award Official ensures all technical, legal, and administrative
evaluations have been made and that the proposed agreement is
awardable. If a proposed agreement is awardable, the Award
Official'is responsible for making the official offer to the designated
recipient by signing the assistance agreement.
5/23/94 '-5
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ACQUISITION VS ASSISTANCE
ACQUISITION
vs.
ASSISTANCE
VIEWGRAPH # 3
TITLE: Acquisition vs. Assistance
KEY POINTS:
The critical determinant to remember when selecting the appropriate
award instrument is based solely on the principal purpose of the
relationship.
Except where the authorizing legislation was enacted after the FGCAA
and the authorizing legislation specifically states it supersedes the
FGCAA or other provisions of law, you must use the criteria in the FGCAA
to determine the appropriate award instrument. In cases where legislation
specifically states that it supercedes the FGCAA, the award instrument
specified in the authorizing legislation must be used.
- If the principle purpose is acquiring property or services for the direct
benefit or use of the Federal Government, then a contract is the
appropriate legal instrument to use.
- If EPA is funding a recipient to support or stimulate activities that are
not principally for the direct benefit or use of the Federal
Government, and the award is authorized by Federal statute, then an
assistance agreement may be used.
Note that substantial involvement during performance is not relevant in
determining whether an acquisition or assistance mechanism is required.
It is only after determining that an assistance agreement is appropriate
that substantial involvement becomes a factor. In other words, the need
for substantial involvement does not dictate the use of a cooperative
agreement rather than a contract. The substantial involvement test is
used to distinguish between a grant or a cooperative agreement.
5/23/94
1.6
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IDENTIFYING PRINCIPAL PURPOSE
• DIRECT BENEFIT OR USE
- INCIDENTAL USE OF BENEFIT
. SUPPORT OR STIMULATION
• NON-PROFIT VS PROFIT
• TYPE OF ORGANIZATION NOT
A FACTOR
TITLE: Identifying Principal Purpose
KEY POINTS:
Direct Benefit or Use/Support or Stimulation
The Federal Grant and Cooperative Agreement Act requires that
to use an assistance agreement, the activity must accomplish a
public purpose of support or stimulation that is not principally for
the direct benefit or use of the Federal government.
The, program office plays the key role in determining whether the
two tests.are-met.
Direct Benefit or Usei
- The paginating office must determine whether the government is
the direct beneficiary or user of the activity. If EPA provides the
specifications for the project; is having the project completed
based on its own identified needs; or will directly use the report
or result of the project (for example, by incorporating or relying
on information developed by the project in writing EPA guidance
or standards) then, in most cases, the principal purpose is to
acquire property or services for the direct benefit or use of EPA
and thus, a contract relationship exists.
- However, there may be cases where EPA expects to derive
some incidental use or benefit from funded activities. Such
incidental use or benefit does not preclude an award of
assistance when the principal purpose is public support or
stimulation. For such cases, an assistance vehicle may still
appropriate.
5/23/94 I-7
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VIEWGRAPH # 4 (Continued)
TITLE: Identifying Principal Purpose
KEY POINTS:
Support or Stimulation:
- To determine "public purpose of support or stimulation", the
program does not have to determine that the recipient
needed the Federal assistance to perform the activity; nor is
it necessary to determine that the recipient, rather than the
EPA initiated the proposed project. The applicant must
perform the project for its own purposes and EPA is
merely supporting the project with financial or other
assistance.
Non-Profit vs. Profit Organizations:
The type of organization does not drive the decision to use
one instrument or the other.
A non-profit organization does not automatically qualify for an
assistance relationship.
Similarly, a profit making organization does not automatically
reflect an acquisition relationship (although a profit making
organization may be an assistance recipient only if the
statutory authority so provides).
Also, research does not always have to funded by an
assistance agreement. Research can be funded by contract
and universities can receive grants or contracts, as well as
cooperative agreements.
5/23/94 '-8
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CONFERENCES
• DEPENDS ON PURPOSE
• EXCEPTION FOR ASSOCIATIONS
OF STATE OFFICIALS
VIEWGRAPH #5
TITLE: Conferences
KEY POINTS:
Conferences may be funded with an assistance agreement if
the principal purpose is not for the direct benefit of the
Government.
• As a general rule, an assistance agreement may not be used
to support a conference or other services if the principal
purpose is to provide advice, recommendations, or other
information for EPA's direct use in developing or changing
guidance, regulations, etc. For example, an office or
laboratory cannot award an assistance agreement to a trade
association or consulting firm to arrange and conduct a
conference of EPA officials and members of the regulated
community if the principal purpose is to enable EPA to obtain
the views of the regulated community on a proposed new
policy or changes in an existing one. If the office or laboratory
needs help in putting on such a conference, it should use a
contract to acquire logistical support services.
An exception to this general rule is assistance to associations
of State officials who implement EPA programs. An
assistance agreement may be used to provide funding to an
association of State officials or agencies to hold a conference
among its members and EPA officials to discuss issues in the
implementation of a Federal effort that the States implement
on a day-to-day basis under a formal delegation or as partners
with EPA in a coordinated, national effort. Although EPA does
derive benefits from such a conference and may subsequently
decide to adopt recommendations or use information provided
by the State officials at the conference, the principal purpose is
to support the association in helping its State members
participate in developing the policies that they will carry out.
(See Appendix B, page 9 for restrictions on these types of
conferences.)
5/23/94 '-9
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GRANTS VS
COOPERATIVE
AGREEMENTS
SUBSTANTIAL FEDERAL INVOLVEMENT
vs.
NO SUBSTANTIAL FEDERAL
INVOLVEMENT
^gSSSffSa
VIEWGRAPH # 6
TITLE: Grants vs Cooperative Agreements
KEY POINTS:
The legal instrument for providing an award of assistance from EPA
to the recipient is either through a grant or a cooperative agreement.
It is important to note that the administrative requirements are the
same regardless of whether a grant or a cooperative agreement is
used.
The distinguishing factor between a grant and a cooperative
agreement is the degree of Federal participation or involvement
during performance.
Section 5(2) of the Act requires that a grant instrument be used
whenever:
"(2) no substantial involvement is anticipated between the
executive agency, acting for the Federal Government, and
the State or local government or other recipient during
performance of the contemplated activity."
Section 6(2) of the Act requires that a cooperative agreement be
used whenever:
"(2) substantial involvement is anticipated between the
executive agency, acting for the Federal Government, and
the State or local government or other recipient during
performance of the contemplated activity."
5/23/94
1.10
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VIEWGRAPH #6 (continued)
TITLE: Grants vs Cooperative Agreements
KEY POINTS:
• Substantial involvement Some examples of substantial
involvement are:
- EPA must approve one phase of the project before the recipient
may proceed to the next phase.
- EPA must approve key personnel involved in the project (other
than the principal investigator);
- EPA will review and approve provisions directly related to the
work that a recipient may wish to add to any proposed
contracts;
- EPA will participate (technically assist) in some of the project
activities;
- EPA prior review or approval of substantial portions of proposed
contracts;
- Joint operational involvement/participation and/or collaboration;
- Intense monitoring by EPA; and
- EPA collaboration on the Work Plan\Narrative, organizational
structure, staffing, mode of operation, or other management
process.
HOWEVER, whether a cooperative agreement or a grant is
used, EPA must:
- Approve the narrative (workplan/scope of work) prior to award of
the agreement;
- Address any deficiencies in performance;
- Review project results/products after completion of the work; and
- Ensure recipient compliance with all applicable statutes,
regulations, policies and all requirements in the agreement, e.g.,
on-site reviews (semi-annual, annual); and
- Review progress reports.
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IN-KIND ASSISTANCE
• CRITERIA
• DOCUMENTATION
VIEWGRAPH #7
TITLE: In-kind Assistance
KEY POINTS:
• In addition to transferring money to an authorized assistance
recipient, EPA may use an assistance agreement to transfer
anything of value, such as equipment or services to a recipient.
• If it is more efficient in terms of cost or time for EPA rather than the
recipient to purchase equipment or services, EPA may do so and
provide the equipment or services to the recipient under the
assistance agreement. This approach would be appropriate, for
example, where a piece of equipment necessary for an assistance
project can be purchased at a considerably lower price or be
delivered much earlier using an existing EPA contract. Likewise,
EPA may provide the services of an EPA contractor to an
assistance recipient in lieu of money, where appropriate.
• Programs should provide the following documentation in their files
when providing in-kind assistance:
- The expected savings of cost or time;
- That all charges are to the grants object class series; and
- That the in-kind assistance complies with the requirements in 40
CFR Part 30 or 31, (e.g., it is allowable and reasonable), and
any program guidance.
5/23/94 ll12
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FAILURE TO COMPLY
GOOD FAITH EFFORTS TO
DETERMINE
TERMINATION, ANNULMENT,
RATIFICATION
VIEWGRAPH #8
TITLE: Failure to Comply
KEY POINTS:
Individuals discovering situations where an assistance
agreement was wrongly awarded where a contract was
required, are directed to consult with representatives from
the EPA program office or laboratory, the Award Official, and
the Office of General Counsel to determine all necessary
actions.
It is GAD policy to allow completion of the assistance
agreement where good faith effort was made to
determine principal purpose in accordance with the
Federal Grant and Cooperative Agreement Act. GAD will
seek to ensure that future funding decisions by the involved
office or laboratory are consistent with the Act.
It is not EPA policy to terminate, annul, or require ratification
for these awards unless there were or will be serious
irregularities, e.g.. conflict of interest or intentional
misconduct.
5/23/94 '-13
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COMPETITION IN
ASSISTANCE AGREEMENTS
• ENCOURAGED BUT NOT REQUIRED
• MAY BE REQUIRED BY PROGRAM
OFFICES
VIEWGRAPH # 9
TITLE: Competition in Assistance Agreements
KEY POINTS:
The Federal Grant and Cooperative Agreement Act encourages
competition in assistance programs where appropriate, in order to
identify and fund the best possible projects to achieve program
purposes.
However, there is no overall requirement for competition, certainly
nothing approaching the detail of the legislation applicable to
procurement contracts, such as the Competition in Contracting
Act of 1984.
While there are no EPA statutes requiring competition, some
program offices are using competition to help ensure they fund
the best proposals, e.g., Research and Development and some
training.
Programs should look at the nature of activities they fund and
make a decision on whether to compete an award.
The proposed EPA Order on Senior Resource Official (SRO)
responsibilities requires that the SRO (through the
Approval/Decision Official) make an affirmative determination that
competition is not appropriate for a particular project.
5/23/94 '-14
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CONFLICTS OF INTEREST
USING PUBLIC OFFICE FOR
PRIVATE GAIN
PREFERENTIAL TREATMENT
LOSING INDEPENDENCE OR
IMPARTIALITY OF DECISIONS
VIEWGRAPH # 9
TITLE: Conflicts of Interest
KEY POINTS:
FEDERAL EMPLOYEE ETHICS STANDARDS
All circumstances that might result in a conflict of interest, or the
appearance of a conflict of interest, or any prejudices, biases, or
predispositions on the part of reviewers must be avoided.
Public service is a public trust. To ensure that every citizen can have
complete confidence in the integrity of the Federal Government, each
Federal employee must comply with certain fundamental principles of
ethical service. These principles are contained in a regulation entitled,
"Standards of Ethical Conduct for Employees of the Executive Branch,"
published on August 7,1992, by the Office of Government Ethics (5
CFR §2635) and are codified for EPA in 40 CFR Part 3, "Employee
Responsibilities and Conduct."
Per these regulations, EPA employees may not take any action which
would, among other things, create the reasonable appearance of:
- Using a public office for private gain;
- Giving preferential treatment to any organization or person; or
- Losing independence or impartiality of action.
RESPONSIBLE OFFICIALS
• Deputy Ethics Officials (DEO)
- .Each Regional Office has two persons designated as DEOs -- the
Regional Counsel and either the Regional Administrator or the
Deputy Regional Administrator.
- In Headquarters, the DEOs are generally the Office Directors and
Deputy Assistant Administrators.
- In the EPA Laboratories, the DEOs are the Lab Directors.
5/23/94 '-15
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VIEWGRAPH # 9 (Continued)
TITLE: Conflict of Interest
KEY POINTS:
Disciplinary action for violating the new governmental ethics rules will
not be taken against an employee who has engaged in conduct based
on advice of an EPA ethics official, provided that employee has made
full disclosure of all relevant circumstances.
EXAMPLES
May an EPA employee who serves without compensation on the board
of directors of a non-profit corporation that engages in environmental
activities review a grant application submitted by the nonprofit
organization? No, because even though the employee's personal
financial interests will not be affected, the employee must
disqualify himself from participating in the review of the grant
application. Award or denial of the grant will affect the financial
interests of the non-profit and its financial interests are imputed to
the employee as a member of its board of directors.
• May an employee whose principal duty in their position is to write
regulations relating to the disposal of hazardous waste serve as
president of a non-profit environmental organization that routinely
submits comments on such regulations? No, the employee's service
as an officer would require their disqualification from duties
critical to the performance of their official duties on a basis so
frequent as to materially impair the employee's ability to perform
the duties of their position.
EPA INVOLVEMENT IN RECIPIENT DECISIONS
POs must not direct or require recipients to use particular persons or
firms in the performance of a grant or cooperative agreement. (See
memo entitled "EPA Involvement in Grantee Personnel and Contractor
Selection Under Grants and Cooperative Agreements," Appendix C.)
EPA personnel may participate in a panel to determine the
qualifications of potential contractors, but may not be involved in the
selection of a contractor.
• EPA personnel may also suggest contractors, when asked by the
recipient, but cannot tell a recipient to use a particular contractor.
RECIPIENT CODE OF CONDUCT
The Code of Conduct standards for applicants/recipients are in 40 CFR
30.613 and 40 CFR 31.36(b)(3). (See Appendices D and E).
5/23/94 !-16
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MODULE II
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ASSISTANCE
PROJECT OFFICERS
TRAINING COURSE
MODULE II
REQUIREMENTS GOVERNING
ASSISTANCE AGREEMENTS
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OVERVIEW
REQUIREMENTS GOVERNING EPA
ASSISTANCE PROGRAMS
HIERARCHY OF REQUIREMENTS
SPECIAL PROVISIONS GOVERNING
INDIAN TRIBAL GOVERNMENTS
VIEWGRAPH # 1
TITLE: Overview
KEY POINTS:
EPA assistance programs are governed by requirements which apply
to all Federal agencies and requirements which are specific to EPA
programs. Even though the Grants Management Office (GMO) has
the overall responsibility for ensuring that the administrative
.requirements are met, the Program offices and laboratories are
responsible for implementing many of these requirements. Therefore,
PQs must understand what the requirements are and should be
familiar with the source of these requirements.
This module describes the sources of requirements affecting
assistance programs - Federal statutes, Delegations of Authority,
Executive Orders, OMB Circulars, Federal regulations, EPA Orders,
and policies -- and which requirements take precedence over the
others.
This module also reviews the special provisions pertaining to Federally
recognized Indian Tribal governments.
5/23/94 2.1
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FEDERAL STATUTES
LEGAL BASIS FOR PROGRAMS
• NEED STATUTORY AUTHORITY
TO MAKE AN AWARD
VIEWGRAPH # 2
TITLE: Federal Statutes
KEY POINTS:
• Federal statutes form the legal basis for all EPA assistance
programs. All EPA projects/programs must have a statutory basis
before EPA can legally fund them.
• Appendix F contains a list of EPA's assistance programs along with
the Federal statute which authorizes that program.
• If there is no statutory authority for an activity, EPA cannot
legally fund the activity. As we will discuss in Module 3, the
program's Decision Memorandum must contain the statutory
authority for making an award.
5/23/94 2.2
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DELEGATIONS OF AUTHORITY
• REQUIRED TO AWARD ASSISTANCE AGREEMENT
• TWO SEPARATE DELEGATIONS:
- APPROVAL AUTHORITY
- AWARD AUTHORITY
VIEWGRAPH #3
TITLE: Delegations of Authority
KEY POINTS:
• Delegation of Authority is a transfer of responsibility from the EPA
Administrator to senior management officials in Headquarters and the
Regions that allow those officials to exercise authority on behalf of the
Administrator (see Appendix G). A Delegation of Authority is
necessary if someone other than the Administrator is to approve
and sign the award.
• There are two types of assistance Delegations - Approval and Award.
• The Award Delegation of Authority (1-14) transfers the authority to
award an assistance agreement to the Regional Administrator
(Regional awards) and to the Grants Administration Division Director
(Headquarters awards).
The Approval Delegations of Authority transfer the authority to
approve an application for award. Each assistance program will have
a Delegation of Authority specific to that program.
All Delegations of Authority are contained in the Agency's Delegations
Manual. The manual is maintained by the Management &
Organization Division (M&O). POs should have a copy of the
approval Delegation of Authority which applies to the assistance
agreements for which they are responsible. Copies of the Delegations
can be obtained from M&O.
5/23/94 2.3
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VIEWGRAPH #3 (Continued)
TITLE: Delegations of Authority
KEY POINTS:
REGIONAL AWARDS
• Each Region will have a Regional Delegations Manual which will specify
who in the Region may act as the Approval and/or Award Official. In some
regions the Regional Administrator retains all award authority, in others,
the award authority is redelegated to the Division Directors or Assistant
Regional Administrator. Currently, the award authority may not be
redelegated below the Division Director/Assistant Regional Administrator
level.
HEADQUARTERS AWARDS
• The authority to make Headquarters awards is delegated from the Director
of Grants Administration Division to the Chief of the Grants Operation
Branch, and the Chief of the Grants Information and Analysis Branch.
5/23/94 2.4
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EXECUTIVE ORDERS
• E.0.11738-Clean Air/Water Violators
• E.0.12549 - Debarment and Suspension Rules For
Nonprocurement Activities
• E.0.11625 • National Minority Business Enterprise
Program
• E.0.12432 - Minority Business Enterprise
Development
• E.0.12138 - National Women's Business Enterprise
Policy
• E.0.12372 - Intergovernmental Review of Federal
Programs
• E.0.12803-Infrastructure Privatization
• E.0.12898 - Federal Actions to Address
Environmental Justice in Minority
Populations & Low-Income Populations
VIEWGRAPH # 4
TITLE: Executive Orders
KEY POINTS:
Executive orders are requirements issued and signed by the President of
the United States. They pertain to the business of Federal agencies and
hold the force and effect of law. In other words, EPA and our recipients
must follow the requirements in an Executive Order.
This viewgraph identifies the primary Executive Orders governing.EPA
assistance agreements.
"BAD ACTORS"
Executive Order 11738, "Clean Air/Water Violators," issued September 10,
1973, prohibits the utilization of clean air/water violators for Federal
contracts and projects funded, wholly or in part, with Federal grants or
loans. If an entity is convicted of violating these provisions, they are listed
along with the suspended and debarred bidders in the General Service
Administration's, "List of Parties Excluded from Federal Procurement and
Nonprocurement Programs" (contact the General/Regional Council, or
GMO for a copy of this list).
Executive Order 12549, "Debarment and Suspension Rules for
Nonprocurement Activities," provides authority to suspend or debar any
"person" from participation in any Federally assisted project if necessary to
protect the government's interest. It is implemented in 40 CFR Part 32.
5/23/94 2.5
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VIEWGRAPH # 4 (Continued)
TITLE: Executive Orders
KEY POINTS:
SOCIO-ECONOMIC ACTIVITIES
Executive Order 11625, "National Minority Business Enterprise Program,"
issued October 13,1971, clarified the authority of the Secretary of
Commerce to implement policy and to assist minority business enterprise.
This Order required the Secretary to develop comprehensive plans and
specific program goals to promote the use of minority business enterprises,
as well as the monitoring and reporting systems required to implement these
plans and programs. This Order also requires the head of each Federal
department or agency to furnish information and reports in a manner
prescribed by the Secretary of Commerce. It further stipulates that within the
constraints of law and appropriations, Federal departments and agencies
must foster and promote minority business enterprise.
Executive Order 12138, "National Women's Business Enterprise Policy,"
issued May 18,1979, directed all Federal agencies to:
Strengthen women's business enterprise and to ensure full
participation by women in the free enterprise system;
Take affirmative action in support of women's business enterprise; and
Require the recipients of federal assistance to take appropriate
affirmative action in support of women's business enterprise, and to
prohibit actions or policies which discriminate against women's
business enterprise. Federal agencies were also required to prescribe
sanctions for noncompliance.
Executive Order 12432, "Minority Business Enterprise Development," issued
July 14,1983, directed all Federal agencies to:
Develop an MBE plan on an annual basis;
Establish MBE objectives;
Identify methods for encouraging prime contractors and recipients to
utilize MBEs;
Build upon programs administered by the Small Business
Administration and Minority Business Development Agency;
Furnish an annual report regarding the accomplishments of their MBE
programs; and
Establish programs to deliver management and technical assistance to
MBEs.
EPA implements these Executive Orders in an Agency Disadvantaged
Business Plan, which is discussed on page 2.23.
5/23/94 2.6
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VIEWGRAPH # 4 (Continued)
TITLE: Executive Orders
KEY POINTS:
LEVERGING FEDERAL DOLLARS
Executive Order 12372, "Intergovernmental Review of Federal
Programs," provides States the opportunity to review and comment
on activities proposed for Federal funding. It is implemented in 40
CFR Part 29.
NEW FEDERALISM
• Executive Order 12803, "Infrastructure Privatization", issued April
30,1992, promotes private investment in local infrastructure.
ENVIRONMENTAL JUSTICE
• Executive Order 12989, "Federal Actions to Address Environmental
Justice in Minority Populations and Low-Income Populations,"
signed February 11,1994, focuses on the environmental and
human health conditions in minority and low-income communities.
The goal of of the Executive Order is to achieve environmental
justice through nondiscrimination in Federal programs, access to
public information on and opportunity for public participation in,
matters relating to human health or the environment.
5/23/94 2.7
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OVERVIEW OF ADMINISTRATIVE REQUIREMENTS
TYPE OF RECIPIENT ACTIVITY
PROCUREMENT
STATE, LOCAL&
INDIAN TRIBE
UNIVERSITIES &
NONPROFITS
PROFIT MAKERS
STATE, LOCAL &
INDIAN TRIBES
UNIVERSITIES &
NONPROFITS
PROFIT MAKERS
STATE, LOCAL &
INDIAN TRIBES
UNIVERSITIES &
NONPROFITS
PROFIT MAKERS
STATE, LOCAL &
INDIAN TRIBES
UNIVERSITIES
NONPROFITS
PROFIT MAKERS
ADMINISTRATION
AUDIT
COST PRINCIPLES
REGULATION/CIRCULAR
40CFRPART31/A-102
40CFRPART33/A-110
48CFRPART31/A-102
40CFRPART31/A-102
40CFRPART30/A-110
40CFRPART30
40CFRPART31/A-128
40CFRPART30/A-133
GOVERNMENT AUDITORS
40CFRPART31/A-87
40CFRPART30/A-21
40CFRPART30/A-122
48CFRPART31
VIEWGRAPH #5
TITLE: Overview of Administrative Requirements
KEY POINTS:
• This slide is an overview of administrative requirements for recipients
by source of the administrative requirements and type of recipient, for
each major area.
While the administrative requirements for assistance agreements are
basically the same for all types of recipients, there are differences. This
module will touch briefly on the source of the requirements and the
major requirements of each.
5/23/94
2.8
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OMB CIRCULARS
40CFR
• A-102 Uniform Administrative Requirements for Part 31
Grants-in-Aid to State and Local Governments
• A-110 Grants and Agreements with Institutions of Parts 30 & 33
Higher Education, Hospitals, and Other
Non-Profit Organizations
• A-21 Cost Principles for Educational Institutions Part30&33
• A-87 Cost Principles for State and Local Governments Part 31
• A-122 Cost Principles for Non-Profit Organizations Part 30 & 33
• A-128 Audits of State and Local Governments Part 31
• A-133 Audits of Institutions of Higher Learning and Part 30
Other Non-Profit Organizations
VIEWGRAPH #6
TITLE: OMB Circulars
KEY POINTS:
OMB Circulars are guidelines issued by the Office of Management and
Budget. They pertain only to the business of Federal agencies. While
they are binding on the Federal agency or agencies to which they relate,
they do not hold the full force and effect of law. In other words, while EPA
must follow the Circulars, unless the Circular is implemented in a Federal
regulation, recipients are not required to follow them. For instance,
recipients are required to follow the cost principles because they are
incorporated by reference in EPA regulations.
• This viewgraph identifies the primary OMB Circulars governing EPA
assistance programs.
For a listing of other OMB Circulars that relate to EPA assistance
programs, see Appendix 1 -A of the Assistance Administration Manual.
ADMINISTRATIVE REQUIREMENTS
OMB Circulars A-102 and A-110 provide uniform administrative
requirements for managing the pre-award, award, and post-award
phases.
- OMB Circular A-102, issued on March 3,1988, establishes
requirements for State and local governments. This Circular is
implemented in 40 CFR Part 31.
- OMB Circular A-110, issued April 1,1976, establishes requirements for
institutions of higher learning, hospitals, and other non-profit
organizations. This Circular is implemented in 40 CFR Parts 30 and 33.
5/23/94 2.9
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VIEWGRAPH # 6 (continued)
TITLE: OMB Circulars
KEY POINTS:
COST PRINCIPLES
• The cost principles determine allowable, unallowable, and costs
which are acceptable if approved by the Federal agency. The cost
principles which apply to Federal assistance are contained in OMB
Circulars A-21, A-87, and A-122 and in the Federal Acquisition Regulation.
Whether or not a cost is eligible for a specific project or program is
determined by the governing statutes and implementing program guidance
and policy for that project or program.
- OMB Circular A-21, issued February 26,1979, and last revised on
October, 1991, provides guidelines for educational institutions.
- OMB Circular A-87, issued January 20,1981, provides guidelines for
State and local governments.
- OMB Circular A-122, issued August 8,1980 and revised May 19,1987
provides guidelines for non-profit organizations other than States, local
governments, and educational institutions.
- Cost principles for profit making entities are contained in the Federal
Acquisition Regulation (48 CFR Part 31).
NON-FEDERAL AUDITS
OMB Circulars A-128 and A-133 provide audit guidance.
- OMB Circular A-128, issued April 12,1985, provides Federal agencies
with policy guidance for implementing the requirements of the Single
Audit Act of 1984, which governs State and local governments, and
Indian tribes. This Circular is implemented in 40 CFR Part 31.
- OMB Circular A-133, issued March 8,1990, provides policy guidance to
Federal agencies for establishing uniform requirements for audits of
institutions of higher education and other non-profit organizations
receiving Federal assistance. This Circular is implemented in 40 CFR
Part 30.
FEDERAL AUDITS
Federal auditors, whether EPA or contract auditors, will conduct any audit
of a profit maker receiving an assistance agreement.
EPA auditors may also conduct an audit of any other assistance recipient,
but is to rely, as much as possible, on audits conducted under A-128 and
A-133.
5/23/94 2.10
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TITLE 40 OF THE
CODE OF FEDERAL REGULATIONS
:••:'•:••.••:•• I
PART 29
PART 30
PART 31
PAKI 9!I
PART 33
PART 34
PART 35
PART 40
PART 45
PART 48
PART 47
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40 CFR PART 29
Provides Intergovernmental Review
Requirements
Applies to Most EPA Assistance
Programs
Implements Executive Order 12372
VIEWGRAPH #8
TITLE: 40 CFR Part 29
KEY POINTS:
40 CFR Part 29, issued June 24,1983, provides intergovernmental
review requirements for EPA-specific programs and activities, as
well as the appropriate communication channels for voicing
comments. Intergovernmental review refers to coordinated review
processes performed at two or more levels of government.
40 CFR Part 29 implements Executive Order 12372
"Intergovernmental Review of Federal Programs," which requires
Federal agencies to allow State and local governments the
opportunity to review proposed Federal financial assistance and
direct Federal development impacting State and local programs.
Further, Executive Order 12372 provides that where feasible, and to
the extent permitted by law, State and local review processes and
comments must be incorporated into Federal programs as early in
the planning stage as possible.
Additionally, 40 CFR Part 29 implements provisions of the
Intergovernmental Cooperation Act of 1968 and the Demonstration
Cities and Metropolitan Development Act of 1966.
Indian Tribes are exempt from intergovernmental review
requirements, but are encouraged to comply.
Remember, the intergovernmental process is designed by the
States. The only time an intergovernmental review is not required is
when the applicant's State process does not cover the program, or
the program is exempt, based on government-wide criteria.
5/23/94 2.12
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VIEWGRAPH #8 (Continued)
TITLE: 40 CFR Part 29
KEY POINTS:
EO 12372
The intent of the intergovernmental review process is to increase
the responsiveness of EPA to State and local entities, and to
identify potential duplication of effort, and/or lack of coordination
with State and EPA projects conducted in a State. The process
allows all officials directly affected by a proposed activity to
comment on that activity.
Though States are not required to do so, they are encouraged to
develop an intergovernmental review process and identify under
which assistance programs they want to review applications. Any
application subject to a State's official review process must undergo
intergovernmental review before EPA will obligate funds. This
procedure applies to most EPA programs. Exceptions are:
- Training (other than Wastewater Treatment Operator and Landfill
Operator training programs);
- Fellowships;
- Research & development, unless:
• public health is affected;
• an environmental impact statement is needed; or
• the proposal has a unique geographic focus and is directly
relevant to the governmental responsibilities of a State or local
government within the geographic areas of the project site.
The comment period is generally 60 days for new proposals and 30
days for a continuation programs.
If No EO 12372 Process:
Applicants in States that do not have an official State process must
comply with the Intergovernmental Cooperation Act of 1968, and
Section 204 of the Demonstration Cities and Metropolitan
Development Act of 1966, as amended. These Acts require
applicants for federally funded projects in metropolitan areas to give
area-wide, metropolitan, regional or local planning agencies
designated to perform planning for the geographical location of the
proposed project an opportunity to review and comment on a
proposed application (generally 60 days).
5/23/94 2.13
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VIEWGRAPH #8 (Continued)
TITLE: 40 CFR Part 29
KEY POINTS:
The type of proposals subject to this requirement involve, among
other things, the construction of highways, wastewater treatment
facilities, sewers, airports, jails, mass transit, open-space land
projects, water development, or land conservation projects. Section
401 provides that to the maximum extent possible Federal financial
assistance for development purposes should be consistent with
planning activities and decisions at State, regional, and local levels.
To satisfy these requirements, the applicant sends a copy of its
application to the areawide metropolitan, regional, or local planning
agency designated to perform planning for the geographic location of
the proposed project and allows them 60 days for review and
comment. If a project is proposed by a specialized unit of local
government, the same opportunity must be given to the general unit
of local government having jurisdiction over the project area. The
applicant must attach any comments that are received to the
application and submit them to the Federal funding agency, i.e.,
EPA.
5/23/94 2.14
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40 CFR PART 30
Provides Administrative Requirements for
Assistance Agreements to Other Than State
and Local Governments
Implements OMB Circulars A-21, A-110,
A-122, and A-133
VIEWGRAPH #9
TITLE: 40 CFR Part 30
KEY POINTS:
40 CFR Part 30 "General Assistance Regulation for State and Local
Governments" was amended on October 1,1988 and retitled
"General Regulation for Assistance Programs for Other Than State
and Local Governments." (See Appendix D).
This regulation provides administrative requirements for all recipients
other than States, local governments, and Indian Tribes.
40 CFR Part 30 implements: OMB Circular A-21 "Cost Principles for
Educational Institutions;" OMB Circular A-110 "Grants and
Agreements With Institutions of Higher Education, Hospitals, and
Other Non-profit Organizations;" OMB Circular A-122 "Cost
Principles for Non-profit Organizations," and OMB Circular A-133
"Audits of Institutions of Higher Learning and Other Non-Profit
Institutions."
Profit makers receiving assistance agreements must comply with the
administrative requirements in 40 CFR Part 30.
5/23/94
2.15
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40 CFR PART 31
Provides Administrative Requirements for
Assistance Agreements to State, Local,
and Indian Tribal Governments
Implements OMB Circulars A-87, A-102,
and A-128
VIEWGRAPH#10
TitLE: 40 CFR Part 31
KEY POINTS:
• 40 CFR Part 31, issued March 11,1988, with an effective date of
October 1,1988, establishes uniform administrative rules for Federal
grants and cooperative agreements and subawards to State, local,
and Indian Tribal governments. (See Appendix E.)
Audit requirements contained in 40 CFR Part 31 are prescribed by
OMB Circular A-128 "Audits of State and Local Governments."
Additionally, 40 CFR Part 31, implements OMB Circular A-87 "Cost
Principles for State and Local Governments" and OMB Circular
A-102 "Grants and Cooperative Agreements with State and Local
Governments."
5/23/94 2.16
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40 CFR PART 32
Implements Executive Order 12549,
Debarment and Suspension Rules For
Nonprocurement Activities
Describes Drug-Free Workplace
Requirements For Assistance Recipients
VIEWGRAPH#11
TITLE: 40 CFR Part 32
KEY POINTS:
This regulation requires EPA to exclude debarred or suspended
parties from certain types of assistance, and to report certain
information about debarred or suspended parties to the General
Services Administration. Debarment or suspension of a party by one
assistance agency has a government-wide effect, i.e., it debars or
suspends them from receiving assistance agreements from all
Federal agencies.
40 CFR Part 32, issued May 26,1988, and last amended May 3,
1990, implements Sections 3 and 6 of Executive Order 12549
(regarding government-wide debarment or suspension) and selected
provisions of the Drug-Free Workplace Act of 1988. It establishes:
(1) rules for debarring or suspending parties; (2) government
authority for compiling and distributing lists of parties debarred or
suspended from receiving Federal assistance; (3) requirements
governing EPA reporting of parties debarred or suspended from
Federal activities; and (4) rules governing drug use among
assistance recipients and their contractors in the project workplace.
5/23/94 2.17
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40 CFR PART 33
PROCUREMENT REQUIREMENTS FOR:
- INSTITUTIONS OF HIGHER EDUCATION,
AND
OTHER NONPROFITS
VIEWGRAPHI12
TITLE: 40 CFR Part 33
KEY POINTS:
• 40 CFR Part 33, issued March 28,1983 and last amended March
11,1988, describes requirements for procurement under assistance
agreements for recipients other than States, local governments,
Indian Tribes, and profit makers. This regulation discusses
procurement of supplies, services, and construction under EPA
assistance agreements and supplements 40 CFR Parts 30,32, and
35. (See Appendix H).
5/23/94 2.18
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40 CFR PART 35
Provides Program-Specific
Assistance Requirements
Contains 16 Subparts
VIEWGRAPH#13
TITLE: 40 CFR Part 35
KEY POINTS:
While 40 CFR Parts 30 and 31 provide the general assistance
requirements, 40 CFR Part 35 provides the program-specific assistance
requirements for other than Research & Development, Training,
Fellowship programs, and Environmental Education grants.
The subparts of 40 CFR Part 35 which apply to construction grants are as
follows:
Grants for Construction of Wastewater Treatment Work (Subpart C)
Reimbursement Grants (Subpart D)
Grants for Construction of Treatment Works/Clean Water Act
(Subpart E)
Grants for Construction of Treatment Works (Subpart I)
Construction Grants Program Delegation to States (Subpart J).
• The subparts of 40 CFR Part 35 which apply to non-construction grants
are as follows:
Financial Assistance for Continuing Environmental Programs
(Subpart A)
Cooperative Agreements for Protecting and Restoring Publicly
Owned Freshwater Lakes (Subpart H)
State Water Pollution Control Revolving Funds (Subpart K)
Grants for Technical Assistance (Subpart M)
Cooperative Agreements and Superfund State Contracts for
Superfund Response Actions (Subpart 0).
Financial Assistance for the National Estuary Program (Subpart P).
Subparts B, F, G, L, and N are reserved for future use.
5/23/94 2.19
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40 CFR PARTS 40,45,46, and 47
• PART 40
Requirements for Research and Demonstration
Grants
• PART 45
Requirements for Training Assistance
• PART 46
Requirements for Fellowships
• PART 47
Environmental Education Grants
VIEWGRAPH414
TITLE: 40 CFR Parts 40, 45, 46, and 47
KEY POINTS:
EPA provides three primary types of assistance with a nationwide impact:
research , development, and demonstration; training; and fellowships.
These types of assistance are normally awarded by Headquarters and are
governed by 40 CFR Parts 40, 45, 46, and 47 which are described below.
(See Appendix I).
• 40 CFR Part 40, issued May 15,1973, and last amended June 24,1983,
establishes EPA's requirements for awarding and managing research and
demonstration grants. Research and demonstration projects are funded to
research and analyze various environmental issues.
40 CFR Part 45, issued October 18,1984, implements EPA's requirements
for awarding and managing training projects. The purpose of this
assistance is to improve and develop the skill base of students and
professionals in the environmental field. Training assistance under 40 CFR
Part 45 includes the following: (1) developing, expanding, planning,
implementing, and improving environmental training; (2) increasing the
number of trained pollution control and abatement personnel; (3) upgrading
the level of occupational and professional training among State and local
environmental control personnel; (4) training people to train others in
occupations involving pollution abatement and control; and (5) bringing new
people into the environmental control field.
5/23/94 2.20
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VIEWGRAPH #14 (Continued)
TITLE: 40 CFR Parts 40,45,46, and 47
KEY POINTS:
40 CFR Part 46, issued October 18,1984, sets forth EPA's
requirements for awarding and managing fellowships. This program
was created to enhance the capabilities of State and local agencies
in the area of environmental protection and management. EPA
fellowships are also awarded to individuals for specific educational
programs in the area of environmental science. EPA sponsors the
following three types of fellowships: (1) local agency fellowship, (2)
State agency fellowships, and (3) special fellowships.
40 CFR Part.47, "National Environmental Education Act Grants
Regulations; Interim Final Rule", is a program awarded out of both
Headquarters and the Regions/ The Environmental Education
grants are available to local education agencies, colleges,
universities, State education or environmental agencies, not for
profit organizations, or noncommercial educational broadcasting
entities.
5/23/94 2.21
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EPA ORDERS, POLICIES &
GUIDANCE
• RECYCLED PAPER
• FUNDING ASSISTANCE AGREEMENTS
• PERFORMANCE-BASED ASSISTANCE
• CARRYOVER OF UNOBLIGATED
BALANCES
• USE OF DISADV ANT AGED BUSINESS
ENTERPRISES
• TIMELY AWARD OF ASSISTANCE
• POLLUTION PREVENTION GUIDANCE
• ASSISTANCE VS. ACQUISITION
VIEWGRAPH#15
TITLE: EPA Orders, Policies, and Guidance
KEY POINTS:
EPA Orders and policies are agency requirements issued by EPA
Headquarters. Regions may also issue regional policies and guidance
consistent with Headquarters policies and guidance issued by EPA's National
Program Managers (NPM). Regions may also issue guidance to implement
EPA Orders, policies, or guidance.
The following are the major Orders, policies, and guidance issuances
affecting assistance administration.
EPA ORDERS
EPA's policy on recycled paper is provided in EPA Order No. 1000.25 "Use
of Recycled Paper." Issued on January 24,1990 and last amended on April
12,1990, this order was developed to promote the use of recycled paper.
Specifically, it requires new contracts and assistance agreements to specify
that reports delivered to EPA in conjunction with EPA contracts or assistance
agreements must be printed on recycled paper (even if recycled paper is
more costly). (See Appendix J)
• To help resolve problems EPA program and GMO staffs are experiencing in
making awards for one-time projects, new programs, and using Administrator
or Regional Administrator discretionary funds, EPA established consistent,
standard operating procedures for funding assistance agreements. (See
Appendix K for the Order, "Policy and Procedures for Funding Assistance
Agreements.")
- Clarifies what information is needed before an award can be made, and
identifies which office is responsible for providing the information.
- The policy states that the Program Office must identify the Program
Element, Statutory Authority, and Delegation of Authority before funds are
distributed to Headquarters or the Region for award.
5/23/94 2.22
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VIEWGRAPHI15 (Continued)
TITLE: EPA Orders, Policies, and Guidance
KEY POINTS:
EPA's Order on the use of assistance agreements versus acquisition
(5700.1) is discussed in Module I. This Order describes when it is
proper to use an assistance agreement and when a contract is required.
EPA POLICIES
• EPA's performance-based assistance policy, issued May 31,1985,
establishes agency-wide procedures for negotiating and overseeing
assistance agreements. It includes guidelines for: (1) assessing
performance, (2) rewarding accomplishments, (3) correcting problems,
and (4) imposing penalties. (See Appendix L.) While the policy applies
to Continuing Environmental Program Grants, the guidelines may be
helpful to other programs.
EPA's policy on carryover of unobligated balances is covered in EPA
Policy Statement No. 88-09 "Disposition of Unobligated Balances of
Assistance Agreements." Issued May 6,1988, by the Office of the
Comptroller with an effective date of June 30,1988, this policy describes
the cases in which the use of appropriated funds may be carried over to
subsequent budget periods and the documentation and accounting
methods this involves. Additionally, this policy statement discusses
cases in which budgets may be decreased without carrying over
appropriated funds, (see Appendix M.)
- Carryover of unobligated balances is authorized for both project type
assistance agreements and Continuing Environmental programs in
cases where the source appropriation has not expired. For project
type assistance agreements, carryover may also be approved
when the source appropriation has expired, if the scope of the work
has not changed and the project period has not expired.
EPA's requirements on the use of disadvantaged business
enterprises (DBE) are contained in two EPA plans. (See Appendix N)
The plans set forth how EPA will implement the statutory provisions of
the Clean Air Act Amendments of 1990 and EPA's 1991 Appropriations
Act as well as the requirements in the Executive Orders discussed on
page 2.6. The Clean Air Act requires that EPA establish a minimum
10% goal for the use of DBEs in contracts awarded under Clean Air
5/23/94 2.23
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VIEWGRAPH #15 (Continued)
TITLE: EPA Orders, Policies, and Guidance
KEY POINTS:
research grants. The 1991 Appropriations Act requires that EPA establish a
minimum 8% goal for the use of DBEs in contracts awarded under all other
assistance agreements.
- In addition to the two plans, EPA's requirements on the use of DBEs are
contained in 40 CFR 33.240 (for universities and other nonprofits); 40 CFR
31.36 (e) (for States, local governments, and Indian tribes); and 40 CFR
35.6580 (for Superfund recipients).
The timely award policy ("Policy on the Timely Award of Assistance
Funds for Continuing Environmental Programs") calls for funding
Continuing Environmental Programs as quickly as possible after funds
become available. It was issued September 14,1992, in conjunction with
the Office of Comptroller's June 26,1992, memorandum clarifying Agency
policy on when funds are available for award. (See Appendix O)
EPA GUIDANCE
The Agency's implementation of pollution prevention is provided in EPA's
"State Grants Guidance: Integration of Pollution Prevention," dated
November 12,1992. (See Appendix P.) This guidance establishes the
Agency's pollution prevention commitment by:
- Promoting pollution prevention in State programs supported by EPA
funds;
- Ensuring that grant requirements as interpreted by EPA/State workplans
support innovative State pollution prevention activities;
- Establishing a process to share information on successful State projects
and identify statutory or other barriers to funding State proposals; and
- Building State capacity in pollution prevention to the extent consistent
with statutory assistance requirements.
5/23/94 2.24
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SPECIAL PROVISIONS FOR
INDIAN TRIBAL GOVERNMENTS
• Minimum Requirements For Establishing
'Treatment as States"
• Exemption from Certain Statutory
Requirements
• Exclusion from Intergovernmental,Review
• Multi-Media Grants
VIEWGRAPH#16
TITLE: Special Provisions for Indian Tribal Governments
KEY POINTS:
To be "treated as a State" under EPA assistance programs, tribes must
document that they are:
A Federally recognized Indian Tribal government; and
Have a tribal governing body which oversees environmental and
health concerns.
For each program, a tribe must demonstrate that it has the administrative
and programmatic capability to carry out the proposed activities.
With respect to EPA programs, Indian Tribal governments are excluded
from intergovernmental review requirements.
• Additionally, Federally recognized Indian tribes, tribal consortia, or
existing organizations which represent groups of Indian tribes are eligible
for multi-media grants. Multi-media grants are agreements which provide
government funds for multiple purposes under one grant. EPA's
Multi-Media Program for Indian Tribes was established by statute in
FY91.
Multi-media environmental program grants are provided for the purposes
of:
Assisting a tribe to develop capability to operate environmental
programs; and
Determining/prioritizing the Tribe's environmental needs and
addressing those needs through a multi-media approach.
5/23/94 2.25
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Hierarchy
STATUTES
EXECUTIVE ORDERS
FEDERAL REGULATIONS
OMB CIRCULARS (implemented
through Federal regulations)
EPA ORDERS & POLICIES
EPA GUIDANCE
VIEWGRAPH#17
TITLE: HIERARCHY
KEY POINTS:
If there is a conflict between two or more documents, those
documents that have the force and effect of law take precedent
over those that do not.
• The viewgraph lists in descending order which document has
precedent over the others.
• A Federal statute carries the greatest amount of weight in this
scheme, followed by an Executive Order, and down through EPA
guidance.
5/23/94 2.26
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MODULE
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ASSISTANCE
PROJECT OFFICERS
TRAINING COURSE
MODULE
PREAPPLICATION
APPLICATION
PHASE
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OVERVIEW
• PRE-APPLICATION ASSISTANCE
• APPLICATION REVIEWS
• PROGRAM GUIDANCE
VIEWGRAPH # 1
TITLE: Overview
KEY POINTS:
The PO reviews preapplications and applications to determine:
- Relevance of the proposal to EPA objectives;
- Programmatic, technical, and/or scientific merit;
- Relationship to other proposals and on-going work; and
- Availability of funds.
The PO's and GMO's responsibilities begin with the assistance
provided to prospective applicants in developing their
application (pre-application assistance). The PO conducts the
programmatic evaluation of the narrative/workplan and
provides assistance on the programmatic aspects of the
application, while the GMO conducts the administrative
evaluation and provides assistance on the administrative
aspects of the application. In some areas, such as reviewing
the budget and determining whether a grant or a contract
should be used, the expertise of both the PO and GMO are
required to ensure that the Agency makes an appropriate
determination.
After the PO's and GMO's initial contact with a prospective
applicant, they should keep a record of any material discussion
with the applicant. While the Official File is not required until
the GMO assigns an Assistance Identification Number, it may
be helpful to keep a record of all discussions with the applicant
in case an issue arises later which was discussed during this
phase.
5/23/94 3.1
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GUIDANCE/SOLICITATION
• HEADQUARTERS GUIDANCE OR
SOLICITATION
• REGIONAL GUIDANCE OR
SOLICITATION
• DISTRIBUTION OF GUIDANCE OR
SOLICITATION
VIEWGRAPH #2
TITLE: Guidance
KEY POINTS:
• The award of an assistance agreement begins with the issuance of
Agency guidance to the applicant. For research grants, the
solicitation serves the same purpose as the guidance does for
other programs. The purpose of the guidance or solicitation is to
inform applicants of the:
- Amount of possible funding;
- EPA (Headquarters/Regional) program priorities;
- Tasks/activities applicants must address in the workplan or
narrative;
- Application due date;
- If the award is competed, the evaluation criteria and the relative
weight of each criteria;
- Statutory cite;
- Evaluation criteria;
- Any special emphasis, e.g. the need to meet DBE requirements;
and
- EPA Contact person.
• To eliminate misunderstanding over what EPA will fund and what is
expected from the applicant, the guidance or solicitation must be in
writing.
5/23/94 3.2
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VIEWGRAPH #2 (Continued)
TITLE: Guidance
KEY POINTS:
The Program may distribute the guidance or solicitation by:
- Sending directly to the applicant, e.g., if the PO knows the
potential applicants which are eligible, such as continuing
environmental program grants;
- Publishing in a publication (Federal Register. Commerce
Business Daily, trade journal) which reaches the target
audience.e.g., if the awards are to be made based on
competition; or
- Distributing to potential applicants in a meeting /conference.
5/23/94 3.3
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PREAPPLICATION ASSISTANCE
• FORMAL OR INFORMAL
• RESULTS IN BETTER PROPOSALS
• BENEFITS BOTH EPA AND
THE APPLICANT
VIEWGRAPH # 3
TITLE: Preapplication Assistance
KEY POINTS:
EPA encourages POs to meet with prospective applicants and discuss
the proposed work and budget before they submit an application. This
will help the prospective applicant to develop the proposal, or sharpen
the focus of a proposal, and will help avoid delays caused by
submitting an incomplete application.
Preapplication assistance may be formal, i.e. the prospective applicant
requests in writing or sends in an SF 424 "Application For Federal
Assistance," (see Appendix Q) designated as a Preapplication; or
informal, i.e., discussions with the PO and GMO concerning various
aspects of the proposed project or questions on the process itself.
Preapplication assistance should take place if it is appropriate, i.e., it
may not be necessary for Continuing Environmental Program grants,
but may be desirable for new recipients or for projects where the
applicant wants to "grease the skids" to speed up the process.
The POs and GMOs should review preapplications generally within 45
days of receipt.
Applicants for Continuing Environmental Program grants should
request preapplication assistance well before the 60 day application
due date to allow sufficient time for a thorough review.
The discussions the PO will have with the prospective applicant will
focus on programmatic activities EPA will fund, e.g., does the
application meet statutory goals and objectives and is it consistent with
program goals and objectives. The program staff performs a
programmatic evaluation of the application. When the programmatic
review of a proposal requires specific qualifications not available in the
program, the reviewer must obtain assistance from other EPA staff
with expertise in the subject area, such as reviewing a Quality
Assurance Plan.
5/23/94 3.4
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VIEWGRAPH # 3 (Continued)
TITLE: Pre-application Assistance
KEY POINTS:
The discussions with the GMO will focus on the administrative issues,
e.g., what needs to be submitted with the application to make it
acceptable from the administrative point of view, what certifications are
required, what justification is needed to support the budget.
Release of information:
- If the Award is to be made based on competition, no EPA official may
provide information regarding priorities, criteria, or other pertinent
matters to a particular applicant or other interested person, unless such
information is available to all parties.
- If the award is not based on competition. EPA employees may review
draft narrative/workplans and provide input. EPA employees may also
negotiate with the applicant to change the proposed outputs, reduce the
assistance amount, or condition the award based on approval of a
revised workplan.
- As a rule, EPA employees should not prepare an application on behalf
of an individual or organization. It is permissible to help applicants by
answering questions, but the applicant should be preparing the
application, after all, this is their proposal!
After evaluating a pre-application, the Approval/Decision Official or their
designee must notify the applicant, preferably in writing, of the results of
the evaluation and either:
- Encourage submission of a formal application for assistance. The
reviewer may suggest modifications or revisions to any aspect of the
application, but under no circumstances should the applicant be
assured of funding; or
- Reject the pre-application. This letter should give specific reasons for
rejection, e.g., lack of scientific/technical merit, not relevant to Agency's
objectives, lack of funds; or
- Take other action. Suggest the preapplication be submitted to another
Federal agency which has a more direct interest in the project.
5/23/94 3.5
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VIEWGRAPH #3 (Continued)
TITLE: Preapplication Assistance
KEY POINTS:
Some benefits from preapplications are:
- Establishes communications between EPA and the
potential applicant;
- Determines eligibility early in the process;
- Determines how well the project fits program guidance and
objectives;
- Determines how well the project might compete with other
similar applications;
- Discourages inappropriate proposals;
- Speeds award of meritorious proposals; and
- Prevents the need to rework inappropriately or incorrectly
prepared formal applications.
5/23/94 3.6
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APPLICATION PHASE
• GMO RECEIVES APPLICATION
• GMO CONDUCTS ADMINISTRATIVE
REVIEW
• PO CONDUCTS PROGRAMMATIC
REVIEW
• REVIEW AND EVALUATE
APPLICATIONS IN 60-90 DAYS
VIEWGRAPH #4
TITLE: Application Phase
KEY POINTS:
During this phase the PO and GMO will review the application to
ensure that it meets programmatic and administrative requirements.
The application should be sent to the GMO who will assign an
Assistance Identification Number, establish the official assistance file,
and conduct legal and administrative evaluations. Remember, an
application is not officially received in EPA until the GMO assigns an
Assistance Identification Number and enters it into the Grants
Information and Control System (GIGS).
The GMO is responsible for sending a copy of the application to
the PO, who will perform a technical review and also obtain the
required in-house or extramural reviews. These two reviews should be
done concurrently to minimize delays. While the length of the
programmatic review will vary depending upon the complexity of the
proposal, time of year, program workload, other EPA staff involvement,
the PO should attempt to complete the review within 3 weeks from
receipt of the application.
Technical Review. The PO's technical review is an appraisal to
select those proposals that will contribute most effectively to
EPA's program objectives and priorities. The PO must ensure that
the proposal is consistent with applicable regulations and
established EPA program criteria and annual guidance. When the
programmatic review of a proposal requires specific qualifications not
available in the program, the reviewer must obtain assistance from
other EPA staff with expertise in the subject area, such as reviewing a
Quality Assurance Plan.
5/23/94 3.7
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VIEWGRAPH # 4 (Continued)
TITLE: Application Phase
KEY POINTS:
Extramural (Non-EPA) Review. EPA supplements the reviews of Agency
personnel in some programs by obtaining independent reviews from
qualified non-EPA professionals.
- Research and Demonstration. The program must arrange for a
minimum of one intramural and two extramural reviews for
technical and scientific merit of applications found to be relevant.
- Extramural reviews are not required for continuation applications, or for
applications requesting support of a conference or symposium.
A programmatic review should:
- Highlight strengths and weaknesses;
- Identify gaps between program objectives and intended activities;
- Determine that the correct funding mechanism (contract or assistance
agreement) is being proposed;
- Identify best management approaches; and
- Suggest how a proposal might be strengthened.
EPA's general goal is to complete its application review and evaluation
within 90 days after the GMO receives the application, unless there is a
statutory or program requirement to review the application sooner, e.g., the
Waste Water Treatment Construction Grant program has a 60 day review
requirement.
The PO and GMO may discuss with applicants how to improve
applications. The application should not dwell on how the project will
benefit EPA, but specifically address why it should be a grant or
cooperative agreement and not a contract.
POs who furnish information to the public must make sure the information
is consistent with program objectives and guidance, as well as releasable
under the Freedom of Information Act. If there is any question over
whether the information is releasable under FOIA, the PO must contact the
Office of General Counsel/Office of Regional Counsel. Never release a
draft workplan.
5/23/94 3.8
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THE APPLICATION PACKAGE
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VIEWGRAPH # 5
TITLE: The Application Package
KEY POINTS:
The application consists of:
- The SF 424, "Application for Federal Assistance",
- Detailed budget,
- A Narrative/Workplan, and
- Certification attachments.
The application package may also contain program specific
requirements, such as the Intended Use Plan for the State Revolving
Fund program, or the Community Relations plan, Health and Safety
Plan, and Enforcement Letter for the Superfund program.
The following is a description of the contents of a "common"
application package.
5/23/94 3.9
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SF 424 - APPLICATION FOR FEDERAL
ASSISTANCE
FACESHEET
BUDGET INFORMATION
ASSURANCES
NARRATIVE/WORKPLAN
VIEWGRAPH # 6
TITLE: SF 424- Application for Federal Assistance
KEY POINTS:
The application (SF 424) consists of four parts -- the Facesheet, Budget
information, Assurances, and a Program Narrative/Workplan.
Even if an application has already been through a preapplication
evaluation, it still may be necessary for the GMO and PO to work with the
applicant to revise the application further before it is approvable.
The PO is also responsible for:
- Reviewing the application to ensure that all budget items, proposed
contracting and subcontracting, and work elements are reasonable and
necessary. To do this, the PO needs to review the narrative/workplan
and must ask the applicant questions if the application does not
provide a clear understanding of why the costs in the budget are
necessary and reasonable.
- Reviewing the application budget to ensure the activities are eligible
under the program statute(s), guidance, and regulations, and the work
is allocable to the project.
• GMOs are responsible for reviewing and analyzing the application to
ensure that all information is complete and correct. This includes
ensuring that all costs are allowable and that assistance is the
appropriate funding mechanism. The GMOs also ensure that the
application meets all statutory, regulatory, and legal requirements.
The SF 424 application (see Appendix Q) is used for all EPA programs
except for the Wastewater Treatment Construction Grants program
(which uses EPA Form 5720-12), and the Fellowship programs (which
use EPA Form 5770-2). These last two forms were specifically
developed for those two programs.
5/23/94 3.10
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FACESHEET
GENERAL SUMMARY INFORMATION
SF424
Facestieet:
• General
Information
• Project
Summary
Provides General
Information About
Applicant
Provides Summary
Information on the
Proposed Project
VIEWGRAPH # 7
TITLE: SF 424 - Facesheet
KEY POINTS:
The applicant provides the information on the Facesheet. The
Facesheet provides:
- General administrative information about the applicant, e.g., type of
entity, location of the project, name of the applicant's contact
person, Congressional district, and
- Summary information about the proposed project, e.g., budget,
length of budget and project periods.
The GMO will review the Facesheet to ensure that all items are
properly completed.
If the award of assistance involves verification of the recipient having
met the required level of effort under a previous award (e.g., §106 of
the Clean Water Act and §105 of the Clean Air Act), the most recent
Financial Status Report and supporting documentation must be
carefully reviewed to ensure the requirement was met.
5/23/94
3.11
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BUDGET INFORMATION
SF421A
Budget
Information
SF 424-A Identifies Total Project Costs:
• Section A-Budget Summary
• Section B • Budget by Object Class
Category
• Section C - Non-Federal Resources
• Section D- Forecasted Cash Needs
• Section E- Budget Estimates of
Federal Funds Needed for Balance
of Project
• Section F - Other Budget Information
VIEWGRAPH # 8
TITLE:
KEY POINTS:
SF 424 - Budget Information
SF 424A (Budget Information) - Budget information indicates total funding
needs and summary information for proposed projects.
Sections A, B, C, and D call for budget estimates for the entire project,
except for projects funded on an annual or other incremental basis. In the
latter case, Section E provides the budget information for subsequent
budget periods. The form itself provides detailed instructions for completing
the form.
The applicant is responsible for preparing the budget.
The narrative/workplan must justify the necessity for every item . There is
no one way to determine the reasonableness of any particular item. If the
PO questions whether a particular item is "reasonably" priced, they should
ask other POs or call various suppliers. The PO may also ask the GMO for
advice, other EPA persons, or the applicant how they arrived at the cost.
The PO is responsible for reviewing the proposed budget against the
Narrative/Workplan to determine whether the budget is reasonable from a
programmatic perspective. In making this determination, the PO should
consider the technical necessity for and price reasonableness of proposed
personnel, travel, equipment, supplies, procurements, and other items in the
budget.
The GMO is responsible for ensuring that budget information is complete
and costs are consistent with Federal cost principles and policies. The
GMO also reviews the indirect cost rate (if indirect costs are claimed) and
will verify that the applicant has a current, approved rate (provisional or
final).
5/23/94
3.12
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VIEWGRAPH # 8 (Continued)
TITLE: SF 424 - Budget Information
KEY POINTS:
• The PO should also consider what will happen to the property after it is
no longer needed for the project/program or the project/program is
terminated. The GMO will add a condition to the agreement regarding
disposition.
Section A - Budget Information provides a summary of the budget by
program, function, or activity.
• Section B - Budget Categories identifies budget amounts by object class
categories. Object Class categories include: personnel, fringe benefits,
travel, equipment, supplies, contractual, construction, indirect cost, and
other.
- The applicant must provide documentation to support the costs in each
object class. This support may either be in the narrative/workplan or may
be an attachment to the application. If the information supplied is not
sufficient to determine that the costs are reasonable and allowable, the
GMO or PO will contact the applicant to obtain additional support.
- For Personnel, the applicant must identify all staff positions by title,
annual salary, and the percentage of time each position will be assigned
to the project/program. The PO must examine staffing requirements for
the project and must determine whether project staff support is adequate
and the right mix to meet the project objectives. (The GMO will review
this category to determine if the salary ranges proposed are reasonable.
Some of the questions the PO should consider are:
- Who is charged with the ultimate responsibility to manage the
project?
- Will key staff members participate full time?
- Are there gaps in areas of expertise?
- For Equipment, the applicant must identify each item and its cost. The
PO must review the list and determine that each item is necessary to
carry out the objectives of the project.
- Some programs (such as Superfund) require the applicant to conduct
a cost/benefit analysis of purchasing equipment, leasing, or letting the
contractor purchase the equipment. The PO is responsible for
ensuring that the applicant complies with any preaward program
specific requirements regarding property (or any other cost item).
5/23/94 3.13
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VIEWGRAPH # 8 (Continued)
TITLE: SF 424 - Budget Information
KEY POINTS:
- For Supplies, the applicant must only request supplies which are
needed to complete the proposed workplan. The PO must review
these costs to determine that the requested supplies are needed for
the proposed workplan.
- For Travel, the applicant must identify the number of trips planned,
the destination for each trip, the number of travelers, and the
estimated cost of each trip. The PO must review these costs to
ensure that the number of trips are necessary to complete the scope
of work and that the number of travelers is consistent with the
purpose of the trip. The GMO will review these costs to verify that the
costs are reasonable, e.g., airline ticket costs, per diem rates,
mileage rates.
- For the Other category of costs, the PO must review these to
determine that they are consistent with the proposed workplan and
are necessary to complete the approved workplan.
- For contractual costs, the applicant must identify what contracts
they intend to award during the budget period. The PO must review
this list and satisfy themselves that:
- The contract support proposed is necessary to carry out the
objectives of the project/program;
- That the applicant has determined that any proposed contractors
are not suspended or debarred; and
- The proposed costs appear reasonable.
- The GMO may also be reviewing the costs from a reasonableness
standpoint.
- If the applicant is proposing to award a sole-source contract, they
must provide their reasoning so that the PO and GMO can
determine if there is adequate justification .
- For Indirect Costs, the applicant must provide a copy of its current
approved indirect cost rate. EPA will not allow a recipient to draw
down on indirect costs unless they have an approved, current rate.
The GMO will verify that the applicant has an approved rate. (If not,
the GMO will condition the award to limit the applicant's ability to draw
down indirect costs until a final rate is approved by the applicant's
Cognizant Federal Agency.)
5/23/94 3.14
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VIEWGRAPH # 8 (Continued)
TITLE: SF 424 - Budget Information
KEY POINTS:
Section C - Non-Federal Resources includes a list of funding sources and
amounts other than those provided by EPA or other Federal agencies. If
the applicant is required to cost share, this section is where those costs will
be shown. For universities of higher education and other non-profits, there
is a minimum 5% cost share (unless a statute or program requires a higher
cost share or an approved deviation has waived the requirement). For all
other recipients, the amount of the cost share, if any, will be determined by
statute or by program regulations or guidance.
• Section D - Forecasted Cash Needs shows the estimated rate of
expenditures by quarter over the Fiscal Year. EPA does not generally
require that its applicants complete this Section.
• Section E - Budget Estimates of Federal Funds Needed for the Balance of
the Project provides useful information to estimate funds necessary for
future years.
• Section F - Other Budget Information is used to list and explain specific
direct and indirect charges that appear in Section B. Space is also
provided to allow the applicant to clarify other parts or sections of the
application.
5/23/94 3.15
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COST SHARING
Requirements Vary
With Program
Only Allowable
Costs Can Be Used
Cannot Use Federal
Funds As Match
May Use In-Kind
VIEWGRAPH # 9
TITLE: Cost Sharing
KEY POINTS:
The amount of the cost share is specified in the regulations
applicable to the program.
Cost sharing requirements may be required by statute (e.g., Air
§105 grants), program policy (Superfund Technical Assistance
Grants), or by regulation (5% minimum cost share for recipients
subject to the provisions in 40 CFR Part 30.)
Appendix 14-A of the Assistance Administration Manual
contains a list of the statutory/regulatory cost sharing
requirements.
Recipients can claim only allowable costs to meet cost sharing
requirements.
The Director, Grants Administration Division, may approve a
deviation from non-statutory cost sharing requirements.
Funds awarded under assistance programs of other Federal
agencies cannot be used to meet EPA cost sharing
requirements unless the other agency's legislation explicitly
authorizes such use, e.g., Department of Housing and Urban
Development's Community Development Block Grant program,
5/23/94 3.16
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VIEWGRAPH # 9 (Continued)
TITLE: Cost Sharing
KEY POINTS:
Sources of funds for recipient cost sharing are either:
- "In-kind" contributions e.g., facilities, equipment, materials,
professional services, volunteer staff time provided by
non-Federal public agencies, organizations, or individuals, or
- Cash.
If there is a cost sharing requirement, the recipient cannot decide
which task, sub task, etc., is funded with Federal dollars and
which is not. Each assistance-related dollar includes both
the Federal and recipient shares. Recipients cannot avoid
Federal statutory or regulatory requirements by separating their
funds from Federal funds.
5/23/94 3.17
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ELIGIBLE, ALLOWABLE, REASONABLE,
AND ALLOCABLE COSTS
• ELIGIBLE-STATUTORY BASIS
• ALLOWABLE - PERMITTED BY
REGULATION, CIRCULAR, ETC.
• REASONABLE - PRUDENT PERSON
THEORY
• ALLOCABLE - BENEFITS
RECEIVED
VIEWGRAPHI10
TITLE: Eligible, Allowable, Reasonable, and Allocable Costs
KEY POINTS:
Eligible: To be eligible, the cost must be permitted by statute, program
guidance, or regulations. The costs must also conform to any Federal
limitations (e.g., real property purchases under the Construction Grants
program, mobile treatment systems under Superfund);
• Allowable: To be allowable, the costs must meet the following general
criteria:
- Be necessary and reasonable for the performance of the award;
- Be authorized by the appropriate Cost Principles;
- Be authorized, or not prohibited, under Federal, State or local laws or
regulations;
- Be consistent with the recipient's policies, regulations, and
procedures. The recipient must apply the same policies, regulations,
etc. to both Federally assisted and non-Federally assisted activities;
- Be consistent with Generally Accepted Accounting Principles;
- Not be included as a cost or used to meet cost sharing/matching
requirements of any other federally financed program (unless
specifically authorized by Federal law); and
- Be adequately documented.
5/23/94 3.18
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VIEWGRAPH #10 (Continued)
TITLE: Eligible, Allowable, Allocable
KEY POINTS:
Reasonable: A cost is reasonable if it does not exceed that which
would be incurred by a prudent person under the circumstances
prevailing at the time the decision was made to incur the cost. To
determine the reasonableness of a specific cost, consideration
must be given to:
- Whether the cost is of a type generally recognized as ordinary
and necessary for the operation of the organization or
performance of the award.
- The restraints or requirements imposed by such factors as
general|y accepted sound business practices, arms length
bargaining, Federal and State laws and regulations, and
terms and conditions of the award.
- Whether the individuals concerned acted with prudence under
the circumstances, considering their responsibilities to the
organization, its members, employees, and clients, the public at
large, and the Government.
- Significant deviations from the established practices of the
organization which may unjustifiably increase the award costs.
Allocable: A cost is "allocable" to an assistance agreement to the
extent that it directly benefits the approved work, or to the extent it
can be distributed in proportion to the benefits received. A cost is
distributed to a particular cost objective (e.g., assistance
agreement, project, service, or other activity) based on benefit
received by that cost objective. A cost is allocable to an
agreement if it is treated consistently with other costs incurred for
the same purposes in like circumstances and if it:
- Is incurred specifically for the award;
- Benefits the award and can be distributed in reasonable
proportion to the benefits received; and
- Is necessary to the overall operation of the organization,
although a direct relationship to any particular cost objective
cannot be shown.
5/23/94 3.19
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CRITERIA FOR APPROVING COSTS
Costs Are Allowable, Allocate and
Reasonable
Costs Conform to OMB Cost Principles
Costs Conform to Applicable
Regulations
Costs Conform to Terms of Assistance
Agreement
Costs Are Incurred During the Project
Period
VIEWGRAPH#11
TITLE: Criteria for Approving costs
KEY POINTS:
Each recipient must follow the Federal cost principles applicable
to that type of organization. (See page 2.10, for a list of the cost
principles.)
Recipients must maintain and report costs in accordance with
the regulation that governs the agreement, i.e., either 40 CFR
30.500 or 40 CFR 31.20.
The recipient cannot be reimbursed for costs that are contrary to
the specific terms of the agreement or are outside its scope.
The recipient may only charge costs if they resulted from
obligations made during the approved funding period.
Preaward Costs
• Recipients may not be reimbursed for costs incurred before the
Award Official signs the agreement unless pre-award costs are
specifically allowed. EPA allows pre-award costs only in
specific circumstances in the following programs:
Construction Grants
- The Award Official must specifically approve preaward costs
before they are allowable. (See 40 CFR 35.2118 for the
limitations of pre-award costs.)
5/23/94
3.20
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VIEWGRAPH#11 (Continued)
TITLE: Criteria for Approving Costs
KEY POINTS:
Continuing Environmental Program Awards/Superfund
Awards
- EPA will reimburse the applicant for allowable costs incurred
from the beginning of the budget period, provided such costs
are contained In the approved application and that the
application was submitted before the expiration of the prior
budget period.
- If an application is received before the end of the prior budget
period, no deviation is necessary.
- If an application is not received before the end of the prior
budget period, a deviation from 40 CFR 35.141 is necessary
[40 CFR 35.6275(b) for Superfund awards].
Project Type Awards
- Recipients may charge to the award only those costs resulting
from obligations incurred during the funding period.
- If the recipient incurs pre-award costs, they must obtain a
deviation from the Director, Grants Administration Division
before those costs can be charged to the agreement. (See
pages 5.13 and 5.14 for a discussion of the deviation process.)
5/23/94 3.21
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CLASSIFICATION OF PROPERTY
Personal Property Real Property Intangible Property
VIEWGRAPH#12
TITLE: Classification of Property
KEY POINTS:
There are two types of personal property: equipment and supplies.
Equipment
- State, Local, and Indian tribal recipients must follow the definitions for
equipment in Part 31. Equipment is defined as items with a useful
life of at least 1 year and an acquisition cost of $5,000 or more per
unit.
- For universities and non-profits, equipment is defined as items with a
useful life of at least 2 years and an acquisition cost of $1,000 or more
per unit.
Supplies.
- Under all EPA assistance programs, supplies are defined as tangible
personal property other than equipment.
Real property under all EPA assistance programs is defined as land,
including land improvements, structures, and right-of-ways, excluding
movable machinery and equipment.
Intangible property includes copyrights, rights in data, and patents.
5/23/94 3.22
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ACQUISITION OF PROPERTY
MUST BE AUTHORIZED IN
ASSISTANCE AGREEMENT
• MUST BE ACQUIRED DURING
BUDGET/PROJECT PERIOD
VIEWGRAPH4M3
TITLE: Acquisition of Property
KEY POINTS:
• In order to purchase property under an assistance agreement,
it must first be authorized in the agreement.
Recipients may purchase property only during the
budget/project period of the assistance agreements.
The title to personal property purchased under an assistance
agreement is always vested with the recipient; however, EPA
reserves the right (in condition(s) to the agreement) to
transfer title to another entity within 120 days after the end of
the project. Also, EPA has an "interest" in the property equal
to the percent of Federal funds in the property, e.g., if the
match is 90% Federal and 10% recipient, EPA has.a 90%
"interest" in the property. At time of disposal, EPA gets 90%
of the proceeds from the sale or, if EPA gets the property,
EPA owes the recipient 10% of the proceeds from the sale.
• When Federally owned property is provided to the recipient,
the title remains with the Federal government.
The title to supplies also vests with the recipient.
5/23/94 3.23
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ASSURANCES
Standard Form 424-B Does the Following:
SF424-B
Applicable
laws
Assurance
of compliance
Outlines Applicable Federal Laws
for Applicants
Assures EPA of an Applicant's
Compliance with Applicable
Federal Requirements
VIEWGRAPH* 14
TITLE:
KEY POINTS:
Assurances
The purpose of the assurances in the SF 424B is to emphasize to the
applicant the Federal laws and requirements which are applicable to
all Federally assisted projects, i.e., "crosscutting" requirements.
The applicant must sign this page as well as the Facesheet. Usually,
the same person signs both places, but whoever signs must have
the authority to bind the organization to the terms of the
assistance agreement.
By signing the Assurance page, the applicant is indicating they will
comply with each of these requirements. Some of the major
requirements the applicant is agreeing to are:
- They will complete the project within the time specified in the
agreement.
- They will comply with all applicable Federal laws, regulations, and
policies.
- They have the financial, managerial, and legal authority to complete
the project.
- The person signing the form is authorized by their governing body to
sign the application as the official representative of the applicant.
5/23/94
3.24
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PROJECT NARRATIVE/
WORKPLAN
PROJECT NARRATIVE
I. History
Describes the History of
the Problem, and
Proposed Actions
Indicates Compliance
with Regulatory
Requirements
VIEWGRAPH4M5
TITLE: Project Narrative/Workplan
KEY POINTS:
The approved project narrative/workplan is the basis for making an
award and is used by the PO to manage and evaluate performance
under the agreement.
A narrative/workplan must be included as part of the application. It
should justify proposed financial, facility, equipment, and resource
needs and provide technical and other information required by
program-specific regulations/requirements.
The narrative/workplan also must describe the need for the
project/program; its objectives; the method to accomplish the
objectives; the geographical location of the project; and the "public"
benefits or results expected to be obtained from the assistance, e.g.,
why the activity should be funded with an assistance relationship and
not a contract.
The PO performs a technical review of the narrative/workplan. If the
PO does not have the technical expertise to perform the review, they
must obtain assistance from other EPA staff with the expertise.
The PO may negotiate the narrative/workplan. The negotiation should
be a two-way process to accommodate applicant needs and practices,
as long as they do not conflict with Federal and/or EPA program
requirements/priorities.
5/23/94
3.25
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VIEWGRAPH # 15 (Continued)
TITLE: Project Narrative/Workplan
KEY POINTS:
• An effective narrative/workplan:
- Will list expected outputs;
- Quantify outputs;
- Link outputs to funding;
- Identify target dates and milestones,
- Require periodic reporting, and
- Explain how the activities will be accomplished.
• The workplan for each Continuing Environmental Program must
also:
- Specify work years and amount and source of funds,
- Identify the agency responsible for each of the outputs, and
- Discuss performance to date under the existing award.
For research awards, the workplan should contain a biographical
sketch(es) of the Key Person(s).
5/23/94 3.26
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TIPS FOR NEGOTIATING
WORKPLANS
• STRIVE FOR REALISTIC GOALS
• ADDRESS MAJOR OBJECTIVES
• USE DIPLOMACY
•COMPROMISE
• PAY ATTENTION TO DETAIL
VIEWGRAPH416
TITLE: Tips for Negotiating Workplans
KEY POINTS:
The goal is to negotiate a workable document that is:
- Realistic and contains well defined commitments that foster
accountability.
- Reflects all activities to be conducted with total assistance
dollars (every dollar includes the Federal and recipient shares.)
Seven management principles to follow are:
- Set priorities and commitments.
- Set a realistic schedule.
- Ensure applicant structures their workplan according to key
program elements with specific outputs.
- Negotiate to improve the workplan.
- Involve other programs in developing the workplan, if appropriate.
- Plan for evaluation from the outset.
- Coordinate with the GMO staff during workplan development, as
needed.
The Project Officer will, in most cases, be EPA's lead negotiator.
The PO also may often need to negotiate internally to establish their
program's official position in dealing with the applicant. To be
successful the PO should:
- Start the process early; provide guidance timely; if necessary,
convene a meeting with the applicant early in the process to
answer questions and influence the drafting of the workplan.
- Have accurate data about the applicant's past performance.
5/23/94 3.27
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VIEWGRAPH #16 (Continued)
TITLE: Tips for Negotiating Workplans
KEY POINTS:
- Realistically assess the applicant's capacity to meet
commitments. Understand their current workload and ability
and/or capability to take on new work.
- Identify areas of potential consensus and potential
disagreements early in the process.
- Focus on interests basic to achieving program objectives. Make
EPA's objectives clear to the applicant and work work to identify
shared interests.
- Search for options to resolve conflicts.
- HAVE A PLAN. Know what role EPA personnel will have in
reviewing the draft and final workplan submittals. Establish firm
deadlines for negotiating the workplan and stick to them.
Evaluation Plan. Introduce your plan for evaluating progress and
performance EARLY in your negotiating process. Define
consequences of inadequate and or nonperformance. Include
reporting plans and schedules and describe the contents
expected in the reports. Coordinate with and include the GMO
during the development of the evaluation plan.
5/23/94 3.28
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CERTIFICATIONS
•PROCUREMENT SYSTEM
CERTIFICATION
•ANTI-LOBBYING
•SUSPENSION AND DEBARMENT
• DRUG-FREE WORKPLACE
VIEWGRAPH4H7
TITLE: Certifications
KEY POINTS:
The applicant must make the following certifications.
The Procurement System Certification Form (EPA Form 5700-48)
indicates whether or not the applicant will follow its own procurement
system (provided system(s) comply with EPA requirements).
- If the applicant indicates it will not follow its own system (either
because that system does not comply with EPA's requirements or
because the applicant does not wish to certify), they are required to
follow 40 CFR Part 31 (local governments and Indian tribes) or 40
CFR Part 33 (universities of higher education and other non-profits).
By not certifying, the applicant also is agreeing they will allow EPA to
conduct a preaward review of proposed contract awards.
- The form does not apply to State governments except under the
Superfund program (see 40 CFR 35.6550(a)).
The Anti-lobbying requirements in 40 CFR Part 34, require that
applicants certify that no appropriated funds will be expended to pay
any person for influencing or attempting to influence an officer or
employee of any agency, a Member of Congress, an officer or
employee of Congress, or an employee of a Member of Congress, in
connection with any Federal award in excess of $100,000. 40 CFR
Part 34 requires applicants and recipients to submit the Standard Form
LLL. "Disclosure of Lobbying Activities." if they used non-Federal funds
to "lobby" in relation to certain Federal contracting and financial
transactions. This form is not required if the entity did not "lobby" for
the grant.
5/23/94 3.29
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VIEWGRAPH # 17 (continued)
TITLE: Certifications
KEY POINTS:
• Suspension and Debarment are methods which can be used to keep
"bad actors" from receiving Federal funds. Suspended or debarred
entities are listed in the General Services Administration's publication,
"Lists of Parties Excluded from Federal Procurement and
Nonprocurement Programs." The Program Offices and the GMO
should ensure that the list has been checked before an award is
made. In the Regions, the GMO or the Headquarters/Regional
Counsel's office will probably have the current list.
- Debarment requires a formal investigation, notification, a hearing,
and (if requested) an appeals process before the EPA Debarment
Official (Director of the Office of Grants and Debarment) can debar
someone.
- Suspension is an immediate temporary action taken to protect the
Federal government and/or public interest pending the completion
of an investigation or ensuing legal or debarment proceedings. The
EPA Debarment Official is the only person that can suspend
someone.
• The Drug Free Workplace Act of 1988 requires contractors and
recipients of Federal funds to certify that they will provide a drug-free
workplace. The Act applies to all Federal assistance programs and
contracts, regardless of value. No separate certification form is
required. The applicant certifies by signing the application.
5/23/94 3.30
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QUALITY ASSURANCE/
QUALITY CONTROL
Recipients are Required to Develop a QAPP.
• A QAPP Outlines Procedures for
ig G
ing
Ensuring Quality In Environmental
Monitorim
The Application Must Include Either a
QAPP or a Schedule for Its Development
• A QAPP Must be Approved Before
On-slte Sampling Can Begin
VIEWGRAPH4M8
TITLE: Quality Assurance/Quality Control
KEY POINTS:
If a project involves environmentally related measurements or data
generation, the applicant must develop and implement quality
assurance practices. These practices consist of policies,
procedures, specifications, standards, and documentation which will
produce data of sufficient quality to meet project objectives and will
minimize loss of data due to out-of-control conditions or
malfunctions.
If the applicant has an EPA approved quality assurance program
plan and it covers the project in the application, they need only
reference that plan in their application.
The quality assurance program plan must be acceptable to the
Award Official in order to receive an award.
Quality Assurance Program Plan: A formal document which
describes an orderly assembly of management policies, objectives,
principles, organizational responsibilities, and procedures by which
an agency or laboratory specifies how it intends to:
- Produce data of documented quality, and
- Provide for the preparation of quality assurance project plans and
standard operating procedures.
5/23/94
3.31
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VIEWGRAPH #18 (Continued)
TITLE: Quality Assurance/Quality Control
KEY POINTS:
Quality Assurance Project Plan: An organization's written
procedures which delineate how it produces quality data for a
specific project or measurement method.
If an applicant is unfamiliar with EPA Quality Assurance (QA)
requirements, the PO should direct them to the appropriate QA
office in Headquarters, laboratories, or the Region.
QA requirements by type of applicant:
- If the application is for research financial assistance, the
application must include a QA narrative statement which either
addresses certain areas or provides justification why any areas
do not apply (see 40 CFR 30.503(d)).
- If the application is from a State or local government (except for
a Wastewater Treatment Construction Grant or Superfund) the
applicant must submit a QA program plan.
- All other applicants must submit a QA project plan with their
application. (Under the Superfund program a recipient may not
begin field work before EPA approves the plan.)
• The requirements for quality assurance are contained in 40 CFR
Part 30 for universities and other non-profits, and in 40 CFR Part
31.45 for States, local governments, and Indian tribal
governments.
5/23/94 3.32
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APPLICATIONS INVOLVING
INTERNATIONAL ACTIVITIES
• ALL APPLICATIONS
THROUGH AA FOR IA
• STATE DEPARTMENT
^ ^ REVIEW MAY BE NECESSARY
VIEWGRAPH4M9
TITLE: International Activities
KEY POINTS:
All applications where all or part of the project is to be performed in a
foreign country by a US recipient, a foreign recipient, or an
international organization regardless of where it is located must be:
- Approved by the Assistant Administrator for International
Activities; and
- Submitted to the Department of State for clearance. A minimum of
35 calendar days must be allowed to obtain State Department clearance.
The OIA will submit the applications to the Department of State.
Any agreement where there will be substantial foreign travel should go
through the OIA.
The "Fly America Act" requires that all government-financed foreign air
travel must be on U.S. air carriers certified under 49 U.S.C. §1371 to the
extent that service by such carriers is available. This applies to Federal
employees and their dependents, consultants, contractors, recipients, and
other traveling for the U.S. Government.
The Program Office is responsible for sending a copy of the application to
OIA for approval. This approval must be obtained before the Program
submits the funding recommendation to the GMO.
The Assistant Administrator for International Activities will review each
proposal with a substantial international component to determine whether
it is in accordance with the EPA and US Government International
Environmental Mission as well as EPA's and the US Government's overall
relationship with the foreign country concerned.
If you have any questions, please call the Office of International Activities,
Washington, DC.
5/23/94 3.33
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PROJECT OFFICER
ROLES AND
RESPONSIBILITIES
• PROVIDE TECHNICAL EXPERTISE
• APPROVE BUDGET/WORKPLAN
• WORK WITH APPLICANT
• INITIAL DETERMINATION OF GRANT VS CONTRACT
• DETERMINE GRANTS VS COOPERATIVE AGREEMENT
ISSUES
VIEWGRAPH #20
TITLE: Project Officer Roles and Responsibilities
Preapplication/Application
KEY POINTS:
In this phase, the PO is responsible for:
- Determining the appropriateness of the workplan (narrative)
activities, whether they comply with program regulations and
guidelines, and identifying any deficiencies in the application.
- Comparing proposed work with other similar efforts the PO is aware
of and ensuring that any overlap or duplication is absolutely
necessary, e.g., in research, some duplication may be beneficial.
- Informing the prospective applicant that EPA does not pay for costs
incurred before an award is made (except in limited circumstances,
seep. 3.10)
- Informing the prospective applicant that there is no. obligation by
EPA to fund the proposal.
- Negotiating the level of funding within constraints of the available
funds.
- Providing the prospective applicant with the Catalog of Federal
Domestic Assistance (CFDA) number for the assistance program, if
applicable. If in doubt, the PO should contact the GMO.
- Notifying the GMO of anticipated applications/solicitations and
receipt date. This will help the GMO plan their work and may help
avoid unnecessary delays in making the award.
5/23/94 3.34
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VIEWGRAPH #20 (Continued)
TITLE: Project Officer Roles and Responsibilities
Pre-application/Application
KEY POINTS:
- Making the initial determination whether an assistance agreement
or a contract should be used. (The GMO will also review the
decision when they review the award package.) The Program's
rationale for deciding that an assistance agreement is appropriate
must be included in the Decision Memorandum.
- Determining if there will be substantial Federal involvement and if
so, developing a condition to include in the cooperative agreement
explaining the substantial involvement.
- Serving as primary program and technical resource to the
Selection Panel, if one is used, regarding program policy,
objectives, and goals.
- Reviewing the application (along with the GMO) to assure that the
work plan is consistent with the budget, e.g., whether any
proposed procurements or property purchases are necessary and
reasonable.
- Obtaining required in-house and/or extramural reviews of the
application.
- Cautioning the applicant against making an award or permitting
any award (subgrant or contract) at any tier to any party which is
debarred or suspended or is otherwise excluded from or ineligible
for participation in Federal assistance programs. (The applicant
must also submit a Debarment Certification with the application.)
- Conducting preaward or post award site visits as necessary to
evaluate programmatic capability.
- Ensuring the Approval/Decision Official informs the applicant and
the GMO if the application will not be funded.
5/23/94 3.35
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GMO ROLES AND RESPONSIBILITIES
PRE-APPLICATION/APPLICATION
PHASE
• OFFICIAL RECEIPT POINT FOR APPLICATIONS
• PROVIDE ADMINISTRATIVE EXPERTISE
• REVIEW APPLICATION FOR ADMINISTRATIVE
ISSUES
• COMMUNICATE ADMINISTRATIVE ISSUES TO
APPLICANT
VIEWGRAPH #21
TITLE: GMO Roles and Responsibilities
Preapplication/Application
KEY POINTS:
In this phase the GMO is responsible for:
- Developing and distributing application kits.
- Responding to the prospective applicant's administrative questions
and issues.
- Receiving, logging in the formal pre-application/application, and
distributing a copy to the PO for their programmatic review.
- Reviewing the application (in conjunction with the PO) to ensure that it
is complete and complies with EPA's administrative requirements.
- Performing a cost review of the budget to ensure that the costs are
allowable and are adequately supported. This may require working
with the PO to obtain additional information.
- Notifying the recipient if any administrative deficiencies are found in
the application and working with the applicant to resolve the issues.
- Conducting a review of the applicant's management systems
(procurement, property, administrative and financial - with the FMO), if
necessary.
- Reviewing the program decision to ensure that an appropriate
instrument is proposed and determining that an assistance agreement
rather than a contract is the appropriate funding instrument.
5/23/94 3.36
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OTHER PLAYERS
ROLES AND RESPONSIBILITIES
PRE-APPLICATION/APPLICATION PHASE
• APPLICANT
• FMO/SFO
• OGC/ORC
• MBE/WBE COORDINATOR
VIEWGRAPH #22
TITLE: Applicant Roles And Responsibilities
Preapplication/Application
KEY POINTS:
In this phase,,the applicant is expected to:
- Seek informal/formal assistance to answer questions concerning
the technical or administrative requirements,
- Respond to inquiries from the PO and GMO concerning the
application,
- Revise the application based on comments received from the PO
and GMO, and
- Comply with Executive Order 12372 intergovernmental review
requirements, if required.
In this phase, the FMO/SFO is responsible for:
- Responding to any request for assistance from the applicant to
establish or improve the recipient's financial management system.
- Determining whether to use the EPA/Automated Clearinghouse
Payment System, advance payment, or reimbursement by Treasury
check to pay the recipient.
In this phase, the PO or GMO may need the assistance of the Office
of General Counsel/Regional Counsel if legal issues arise. For
instance, if it is unclear whether the award should be a contract, grant
or cooperative agreement, it may be necessary for the GMO to get
OGC/ORC's legal opinion. Also, if there is a question over who is
eligible or if certain activities are eligible, OGC/ORC may be able to
help the PO make the decision.
5/23/94 3.37
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VIEWGRAPH #22 (Continued)
TITLE: Other Players Roles and Responsibilities
Application/Preapplication Phase
KEY POINTS:
In this phase, the Regional or Headquarters MBE Coordinator may
negotiate with the applicant to determine the Fair Share percentage
the applicant will use if EPA makes an award . If this negotiation
does not take place during this phase, it must be done during the
award phase.
- The MBE Coordinators are responsible for negotiating the Fair
Share objectives with each recipient. The recipient must agree to a
Fair Share percentage before they award any contracts under the
assistance agreement. The Fair Share is the percentage of contract
awards that the recipient will try to award to MBE/WBE contractors.
- Each Region has a Regional MBE Coordinator who should be
contacted for questions on regional assistance agreements. The
MBE Coordinator in Headquarters is in the Grants Administration
Division. If there are questions on Headquarters awarded awards,
this individual should be contacted. See Appendix R for a list of the
Headquarters and Regional MBE Coordinators.
5/23/94 3.38
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MODULE IV
-------
SB,
resctf"
ASSISTANCE
PROJECT OFFICERS
TRAINING COURSE
MODULE IV
AWARD
-------
THE ASSISTANCE AGREEMENT:
AWARD PHASE
RESPONSIBILITIES OF DIFFERENT OFFICES
DIFFERENCE BETWEEN PROGRAM
APPROVAL AND THE AWARD DECISION
PREPARATION OF FUNDING
RECOMMENDATION AND THE ASSISTANCE
AGREEMENT
VIEWGRAPH # 1
TITLE: The Assistance Agreement: Award Phase
KEY POINTS:
This module discusses the award stage of funding an application.
The award stage consists of making the program and award
decisions; preparing the funding recommendation package and
the assistance agreement; notifying the Congressional delegation,
various EPA offices, and the recipient, and executing the
assistance agreement.
During the award phase, the PO and the GMO must prepare
various documents, including the funding
recommendation/Decision Memorandum and the assistance
agreement.
5/23/94 4.1
-------
OVERVIEW OF THE AWARD PHASE
Program Office
IS8U8S
Programmatic
Approval
—
Financial Management
Office (Regions)
Allowance Holder (HO)
Cammtte Funds
—
Program onioe
Prepares/Approve*
Funding
twconifnondctlon
i
SRO Reviews Award*
Ovw Thmhokts
-*
QUO Prepares
Aaeletanoe
Agreement/ Amendment
—
Award Official Execute*
the
1
GAD notifies the
Congressional Affairs
Office
5 Day Watting Period
Award mailed to
VIEWGRAPH # 2
TITLE: Overview of the Award Phase
KEY POINTS:
The award phase of assistance administration consists of nine
stages, as illustrated.
The program office (Approval/Decision Official) approves an
application for award and obtains funding approval.
All funds must be entered into IFMS. In the Regions, the FMO
commits, records, and obligates funds, in Headquarters, GOB
and GIAB obligate the funds.
The program office prepares and forwards its funding
recommendation package to the GMO.
The Senior Resource Official will review all program grants and
State Revolving Fund grants over $5 million, and all other
awards over $1 million to ensure that the proper funding
mechanism is being proposed and, if there was no competition,
there is adequate justification for not competing the award.
5/23/94
4.2
-------
VIEWGRAPH # 2 (Continued)
TITLE: Overview of the Award Phase
KEY POINTS:
• The GMO prepares the assistance agreement and forwards it to the
Award Official. The GMO must also verify commitments against
data in IFMS (Prevalidation) before the Award Official signs the
award.
• Once the Award Official signs the assistance agreement, the GMO
informs the Grants Administration Division which, in turn, informs
the Congressional and Legislative Affairs, which is responsible for
notifying the appropriate House and Senate members.
• After the 5 workday Congressional notification hold period has
passed, the GMO mails the award offer to the applicant for their
signature.
5/23/94 4.3
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COMPONENTS OF
THE AWARD
Assistance
Application
Assistance
Agreement
Applicable
Regulations
VIEWGRAPH # 3
TITLE: Components of the Award
KEY POINTS:
The award includes the following:
(1) EPA Assistance Application, including the approved
workplan/narrative (by reference);
(2) EPA Assistance Agreement (EPA Form 5700-20/20A), including
any Terms and Conditions, and/or any Special Conditions for
"High Risk" applicants; and
(3) EPA regulations (by reference).
5/23/94
4.4
-------
CONTENTS OF FUNDING
RECOMMENDATION PACKAGE
DECISION MEMORANDUM
FUNDING ORDER
PROGRAMMATIC TERMS &
CONDITIONS,
COMMITMENT NOTICE
IN-HOUSE REVIEW
EXTRAMURAL REVIEWS
(OR PANEL REVIEW)
RESEARCH ONLY
ENVIRONMENTAL REVIEW,
ORD GRANTS ONLY
QUALTTY ASSURANCE
REVIEWS, IF APPLICABLE
ADDITIONAL INFORMATION
NEGOTIATED WITH RECIPIENT
NEW AWARD
X
X
X
X
X
X
X
X
X
INCREMENTAL
FUNDING
N/A
X
X
X
N/A
N/A
N/A
N/A
X
SUPPLEMENTAL
FUNDING
X
X
X
X
X
N/A
N/A
N/A
X
CONTINUATION
AWARD
X
X
X
X
X
N/A
N/A
X
X
VIEWGRAPH #4
TITLE: Contents of Funding Recommendation Package
KEY POINTS:
Definitions
New/Initial award: the initial award of a project.
Incremental Funding: an. amendment to an initial award or
continuation award to provide additional funds to the recipient
per the original application when the initial award has not been
fully funded.
Supplemental Funding:an amendment to an initial award or
continuation award, based on a written request from the
recipient, to provide additional funds over and above the amount
requested in their original application.
Continuation Award: the award of a subsequent budget period
within an approved project period. For projects over two years,
usually more than one budget period is required. The PO
should consult appropriate regulations for limits that apply to
duration of budget and project periods.
5/23/94
4.5
-------
VIEWGRAPH #4 (Continued)
TITLE: Contents of the Funding Package
KEY POINTS:
The Program Office prepares and forwards to the GMO the:
- Funding Order (EPA Form 5700-14), if required by the GMO;
- Commitment Notice (EPA Form 2550-9), if required by the
GMO; and
- Decision documentation.
The Funding Order (signed by the Approval Official) identifies the
approved funding amounts and the name of the assigned Project
Officer. The Funding Order provides the GMO with the financial
information needed to prepare the award document. The PO is
responsible for attaching any programmatic terms and conditions.
The program may provide this information in a Decision
Memorandum.
The Commitment Notice is used to reserve funds. EPA cannot
make an award unless funds are "committed" in the Integrated
Financial Management System (IFMS).
For research grants, the Office of Research and Development
has special review procedures. Compliance with these
extramural (or panel) reviews must be addressed in the funding
package.
The Decision Memorandum is the Program's recommendation for
award. This documentation must include:
- What actions the Program wants the GMO to take, e.g., transfer
funds among categories, make an award, approve equipment.
- Statutory authority for the award;
- Objectives of the project/program;
- Summary of review(s) and reconciliation of issues identified in
any reviews;
- Delegation of Authority number;
- Total amount of the award;
- Amount of Federal funds;
5/23/94 4.6
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VIEWGRAPH # 4 (Continued)
TITLE: Content of the Funding Package
KEY POINTS:
- Budget/project period;
- Statement that the award should be awarded as an assistance
agreement and a brief statement why (e.g., statute requires, direct
beneficiary not the Federal government);
- If the award is to be a cooperative agreement, what the substantial
Federal involvement will be;
- Whether QA/QC approval is necessary and whether EPA has given
that approval; and
- Specific program conditions to be added to the award, e.g., need
quarterly progress reports rather than annual; need specific PO
approval before recipient starts specific tasks/activities; equipment
disposition, if applicable.
- Justify using funds from two different appropriation accounts
(mixing appropriations), e.g., funding a project with both
Research and Solid Waste funds. If more than one appropriation
account is used, contact your Senior Budget Officer to ensure
that the proper accounting data is used. Since this could be
time consuming, start this as soon as you know two or more
appropriations will be used.
5/23/94 4.7
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CONDITIONS IN THE
ASSISTANCE AGREEMENT
Terms and
Conditions
Special Conditions
VIEWGRAPH # 5
TITLE:
KEY POINTS:
Conditions in the Assistance Agreement
Terms and Conditions and Special Conditions are the additional
requirements that will govern an award. These are either spelled out
directly in the assistance agreement or are incorporated by reference
(e.g., the 40 CFR Parts 30 and 31 administrative regulations).
Terms and Conditions:
Each recipient is subject to certain terms and conditions. These
include all applicable provisions of Title 40 of the Code of Federal
Regulations as well as other pertinent laws and regulations.
Terms and conditions of a programmatic nature, for example, include
restricting work on a part of the project until specific milestones are
met, restricting certain activities until qualified personnel are hired, and
specifying the frequency & content of progress reports.
• Terms and conditions of an administrative nature may include
requirements which:
- Are not in a regulation because the requirement was implemented
after the regulation was last changed, e.g., recycled paper, the 8%
DBE plan, or
- The requirement is added to emphasize a requirement for a particular
project, recipient, or group of recipients, e.g., the approved indirect
cost rate.
5/23/94
4.8
-------
VIEWGRAPH # 5 (Continued)
ITLE: Conditions in the Assistance Agreement
KEY POINTS:
Terms and Conditions need to be clear and specific.
In the case of Cooperative Agreements, EPA's "substantial
involvement" is spelled out either in the terms and conditions or in the
approved application's narrative/workplan, which becomes part of the
award. For Headquarter's awarded Cooperative Agreements, the
"substantial involvement" must be included in the Terms and
Conditions. (See Module II for examples of "substantial involvement.")
High Risk Applicants
In some cases, EPA may determine that an applicant is a "High Risk"
and should, therefore, be subject to certain "Special Conditions."
An applicant is considered "high risk if it:
- Has a history of unsatisfactory performance;
- Is not financially stable;
- Has a management system which does not meet the management
standards set forth in EPA administrative regulations;
- Has not conformed to the terms and conditions of a previous award;
or
- Is otherwise considered "not responsible" by the Award Official.
The following Special Conditions may be included in the assistance
agreement:
- Paying on a reimbursement basis;
- Withholding authority to proceed beyond one phase without proof of
acceptable performance;
- Requiring the recipient to furnish specially detailed financial reports;
- Providing additional project monitoring;
- Requiring the recipient to obtain technical or management
assistance; or
- Establishing additional prior approvals.
5/23/94 4.9
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EXECUTION OF
THE ASSISTANCE AGREEMENT
Award Official
Signs
Agreement
Appropriate
Notifications are
Made
Agreement is
Issued to
Recipient
Recipient
Signs
Agreement
Countersigned
Agreement is
Returned to EPA
VIEWGRAPH # 6
TITLE: Execution of the Assistance Agreement
KEY POINTS:
Executing an agreement involves obtaining signatures from both
parties to the agreement. This illustration describes the primary steps
involved in fully executing an assistance agreement.
When the Award Official signs the assistance agreement, EPA
assumes its share of the legal obligation and incurs a fiscal obligation
as well.
Immediately after the Award Official signs the agreement, the GMO
enters the signature date into the Grants Information Control System
(GIGS).
Each day, the Grants Information and Analysis Branch pulls a GIGS
report showing awards entered since the day before and sends the
report to the Office of Congressional Liaison (OCL).
The OCL notifies the appropriate Congressional representative or
designee.
• Once the five-day Congressional notification requirement is met, the
GMO mails the award offer to the recipient.
In emergencies, the five-day hold (workdays) for Congressional
notification may be waived pursuant to OCL procedures.
• Once a recipient signs an agreement and sends it back to the GMO,
the recipient assumes a legal obligation to perform all of the activities
listed in the agreement, in the timeframe agreed to, and for the dollar
amount specified.
5/23/94
4.10
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PROJECT OFFICER
ROLES AND
RESPONSIBILITIES
• PREPARE FUNDING PACKAGE
• OBTAIN PROGRAMMATIC
CONCURRENCES
• ESTABLISH THE OFFICIAL PROJECT
FILE
• REVIEW THE AWARD DOCUMENT
VIEWGRAPH # 7
TITLE: Project Officer Responsibilities
• In this phase, the PO is responsible for:
- Preparing a funding package consisting of the: Decision
Memorandum; Funding Order (EPA Form 5700-14), if required
by the Grants Management Office; and Commitment Notice
(EPA Form 2550-9), if required by the Grants Management
Office.
- Obtaining the necessary programmatic concurrences and
signatures on the.funding package and sending the package to
the next level in the concurrence chain.
- Obtaining Office of International Activities' approval for all
international awards.
- Obtaining the Office of Research and Development's Office of
Health Research approval for all projects involving human
subjects.
- Establishing an official file for the project (see Appendix S).
5/23/94 4.11
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GRANTS MANAGEMENT OFFICE
ROLES AND
RESPONSIBILITIES
• REVIEW FUNDING PACKAGES
• PREPARE AWARD DOCUMENT
• ASSURE COMPLIANCE WITH
CONGRESSIONAL NOTIFICATION
• SEND AWARD OFFER TO
APPLICANT
VIEWGRAPH # 8
TITLE: Grants Management Office Roles and
Responsibilities
KEY POINTS:
In this phase, the GMO is responsible for:
- Ensuring that all elements of the application and funding package
meet legal and regulatory requirements.
- Reviewing the funding package and assuring it is complete and is
signed by authorized officials.
- Assuring that there is a Commitment Notice and verification of
available funds.
- Assuring the agreement contains all required administrative and
program conditions, and any Special Conditions for a "High Risk"
recipient.
- Preparing the award/amendment document (EPA Form
5700-20A/B).
- Forwarding the award package to the Award Official for signature.
- Assuring compliance with the Congressional Notification
requirements.
- Verifying the Indirect Cost Rate.
- Mailing the award offer to the applicant.
- Confirming the statutory authority and delegation of Authority.
- Assuring appropriate funding mechanism.
5/23/94 4.12
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OTHER PLAYERS'
ROLES AND
RESPONSIBILITIES
• APPLICANT/RECIPIENT
• FINANCIAL MANAGEMENT
• SENIOR RESOURCE OFFICIAL
• OGC/ORC
• MBE/WBE COORDINATOR
VIEWGRAPH # 9
TITLE: Other Players' Roles And Responsibilities
KEY POINTS:
Applicant/recipient Roles and Responsibilities
In this phase, the applicant is responsible for signing the award
offer, or requesting a time extension, within 3 weeks of receipt. If
the applicant does not sign the award within 3 weeks, the Award
Official may withdraw the offer (see 40 CFR Part 30 and EPA
policy.)
Financial Management Office Roles and Responsibilities
• The FMO will record an obligation in the Integrated Financial
Management System (IFMS) immediately after receiving the
signed agreement from the Award Official.
Senior Resource Official
The SRO will be reviewing and concurring on funding
recommendations for awards over $1 million for project awards,
and $5 million for Continuing Environmental Program grants and
State Revolving Fund grants.
Office of General Counsel/Regional Counsel
OGC/ORC may have to become involved in contracts versus
assistance decisions, eligibility of activities, etc.
Minority Business Enterprise (MBE) Coordinators
If not already done, the MBE Coordinators will have to negotiate
the Fair Share percentage if the award includes funds for
equipment, supplies, or construction.
5/23/94 4.13
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MODULE V
-------
ASSISTANCE
PROJECT OFFICERS
TRAINING COURSE
MODULE V
PROJECT ADMIN & MGT
-------
OVERVIEW
PO RESPONSIBILITIES IN THIS PHASE INCLUDE:
• MONITORING RECIPIENT PERFORMANCE
• REVIEWING REPORTS
• PROVIDING TECHNICAL ASSISTANCE
• REVIEWING MODIFICATION (AMENDMENT)
REQUESTS
• HANDLING DEVIATIONS/DISPUTES
• RESPONDING TO NONCOMPLIANCE BY
RECIPIENT
VIEWGRAPH #1
TITLE: Overview
KEY POINTS:
This module discusses the general responsibilities of GMOs,
POs, and SFOs during project administration.
Generally, the GMO serves as a source of administrative
oversight for all EPA assistance agreements. However, the
GMO also serves as the liaison between the Project Officer
and SFO, and the recipient's project manager and
administrative staff with regard to the administrative aspects
of assistance.
The Project Officer serves as EPA's technical manager and
liaison with the recipient's project manager on all matters
relating to project performance.
The Project Officer serves as a source of programmatic
oversight (on-site reviews; review/approval of progress
reports, FSRs, payment requests), and provides technical
assistance if needed.
5/23/94
5.1
-------
MONITORING RECIPIENT PERFORMANCE
• On-Site:
- Performance Reviews
- Technical Assistance
• In-House:
- Reports
• Payment vs. Progressjg
- Audit Follow-up
VIEWGRAPH # 2
TITLE: Monitoring Recipient Performance
KEY POINTS:
The overall management of assistance agreements is a cooperative
effort among the POs, GMOs, and SFOs. During project/program
performance, these monitoring duties must be performed through the
closeout of the assistance agreement.
Some monitoring activities may be the responsibilities of more than
one EPA office to help ensure that potential problems are identified
and proper corrective actions are taken. Examples are:
- Monitoring the project or budget period end dates to ensure that
the agreement is extended, if necessary, before the budget or
project period expires.
- Monitoring recipient performance.
Responding to allegations of mismanagement by recipient
employees or others.
- Responding to audit reports on an assistance agreement.
Besides audits, EPA performs a variety of other recipient monitoring
activities, both on-site and "in-house" (at Headquarters or a Regional
Office).
5/23/94 5-2
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VIEWGRAPH # 2 (Continued)
TITLE: Monitoring Recipient Performance
KEY POINTS:
On-Site Reviews include the following:
• Mid-year and end-of-year reviews to evaluate recipient
performance. These reviews are required under the "Performance
Based Assistance Policy" for Continuing Environmental Program
Grants, and are strongly encouraged for the other programs.
• Technical assistance reviews are used to help ensure the highest
quality recipient management practices, and to avoid future audit
findings and difficulties by ensuring recipient compliance with EPA
regulations. These reviews also assist the recipient in
implementing changes to their systems and processes in response
to changing Federal requirements and to follow up on these
changes, and to clarify the specific regulations that govern the
recipient's cooperative agreement
In-House Reviews include:
• Reports:
- Financial Status Reports: The SF 269, "Financial Status Report"
must be reviewed to ensure that the recipient uses EPA funds
properly. This review is done by the GMO as well as the PO.
The PO should review the report in connection with the progress
reports. If there appears to be a discrepancy between the
financial information on the SF 269 and progress on the
project/program, the PO should determine if there is in fact a
problem, or if the discrepancy can be satisfactorily explained.
- Progress Reports: The frequency of these reports will vary with
the program. The frequency will usually be required in a
regulation or by program policy, but the reports should not be
required more often than the program needs. (However, they
cannot be required more often than quarterly.) The content of
the report will also vary with the program. Each program office
must determine what information they need to adequately
monitor the recipient's technical and financial progress.
5/23/94 5-3
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VIEWGRAPH # 2 (Continued)
TITLE: Monitoring Recipient Performance
KEY POINTS:
o The PO should review the recipient's progress against the
rate of expenditure, and if there appears to be a problem,
notify other EPA offices to determine what steps need to be
taken to correct the problem. (The progress report format
should require the recipient to provide information on the rate
of expenditure versus progress on the project, actual
accomplishments, and any problems encountered during the
performance period which may interfere with meeting
program/project objectives.)
o POs can obtain information on the funds disbursed for
specific assistance agreements from the Integrated
Financial Management System (IFMS). While a report from
IFMS will only indicate past disbursements, the report can
help the PO by providing information along with the progress
reports to keep track of the project/program. A copy of this
report can be obtained from the Service Finance Office (or
anyone else with access to IFMS).
- Payment Requests: Under the reimbursement payment
system, Regional POs should review the request and
determine that payment should be made. For Headquarters
awards, the Financial Management Center, Las Vegas
performs this function. Under the ACH payment system, the
PO will not be informed before the draw down is made.
Communications
- Keep in touch with the recipient. This is the best way to keep
aware of what is going on in the project. Telephone calls,
however, do not substitute for on-site visits, but may be all
that can be done when resources do not permit on-site
reviews.
• Audit Follow-up
- EPA uses its Management Audit Tracking System (MATS) to
ensure complete and timely follow-up on the resolution of all
audit (or other review) findings and the completion of all
corrective actions.
5/23/94 5'4
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RECIPIENT REPORTS
Recipient Report*
VIEWGRAPH # 3
TITLE: Recipient Reports
KEY POINTS:
A recipient must submit reports to EPA indicating the use of
funds, the status of accomplishments, and recipient compliance
with administrative and program requirements.
The GMO is responsible for obtaining administrative reports
required by the agreement, and will follow up if the reports are
not received. Some of these reports may be sent directly to other
EPA offices e.g., MBE/WBE reports to the MBE Coordinator,
which means that the PO and others should let the GMO know if
the report was received on time.
The PO is responsible for obtaining and reviewing programmatic
reports to determine their adequacy. |f there are problems with
the content of the report or the report is not received when
required by the application, the PO should deal directly with the
recipient. If the situation warrants, the PO should work with the
GMO to discuss what further action may be necessary.
The POs and others who receive a report should let the GMO
know when the report is received. During closeout, the GMO will
be asking the other offices if all reports were received when
requested and met EPA requirements.
5/23/94
5.5
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PO RESPONSIBILITIES
FOR PAYMENT REQUESTS
Electronic
• Advance Payment
(EPA-ACH or Tran.
Treasury Check) Transfer
• Reimbursement
Payment
(Treasury Check)
VIEWGRAPH # 4
TITLE: PO Responsibilities for Payment Requests
KEY POINTS:
There are three payment methods available
- Advance Payment, including Working Capital Advance;
- Reimbursement; and
- Combination Advance/Reimbursement.
Under these payment methods, recipients will receive payment
under one of two mechanisms:
- Electronic transfer of funds. This includes the Automated
Clearing House (ACH) mechanism for domestic entities only,
and FEDLINE for international entities.
- U.S. Treasury check.
POs should not make promises regarding how a recipient is to be
paid under their assistance agreement. Because each recipient
must comply with the U.S. treasury and Office of Management
and Budget cash management guidelines, recipients should
contact the appropriate EPA Service Finance Office (SFO)
directly for questions on how and when their payments will be
processed.
• Payment methods are determined by the SFO, however, the
SFO, GMO, and program may have to get together to determine
the appropriate payment method/mechanism.
• Also, each SFO and GMO may have different arrangements for
reviewing payment requests, e.g., the PO and the GMO may
review reimbursement requests in some Regions, the GMO may
review the requests in other Regions, or the SFO may review
and process all payment requests.
5/23/94 5-6
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VIEWGRAPH #4 (Continued)
TITLE: PO Responsibilities for Payment Requests
KEY POINTS:
ADVANCE PAYMENTS METHODS
Automated Clearing House Payment System
• If the recipient is on the ACH payment system, the PO and GMO
will not generally see the requests for payment. The recipient
sends the request directly to the SFO, and EPA has 24 hours to
disapprove the draw down.
If the PO wants to restrict the recipient's drawn downs (e.g.,
cannot draw down above a certain percentage until a specific
task or product is delivered), the PO must make'this a condition
of the award and inform the GMO and SFO of the limitation.
The PO may obtain a report from the Integrated Financial
Management System (IFMS) through their budget office (or
anyone else with access to IFMS) which may assist their
program by providing amounts disbursed by the SFO for specific
agreements. While this report shows only past disbursements, it
can help the PO by providing information along with the
progress reports to keep track of the project/program.
If there is a question on payments under the ACH payment
system, the GMO and PO must decide if there is a need to
restrict future requests and if so, contact the SFO to decide on a
course of action.
Working Capital Advance
• If a recipient cannot met the criteria for the ACH payment
method and the EPA determines that the recipient lacks
sufficient working capital, EPA may provide cash on a working
capital advance basis. The advance covers the first funding
period; thereafter, funds are disbursed on a reimbursement
basis.
5/23/94 5J
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VIEWGRAPH # 4 (Continued)
TITLE: Payment Process
KEY POINTS:
REIMBURSEMENT PAYMENT METHOD
If the recipient is under a reimbursement payment system (for
other than construction grants), the recipient is to request
payments on the SF-270, Request for Advance or
Reimbursement.
- The PO should review the recipient's request for payment to
determine if programmatic progress is consistent with the
request for funds. If there is any question, the PO should
contact the GMO and both should decide what action, if any,
is necessary.
- For Headquarters awards, the PO and GMO do not see the
payment request, and therefore, the PO must rely on the
progress reports or an IFMS report to determine if progress on
the project/program is consistent with the recipient's requests
for payment.
If a Wastewater Treatment Construction Grant recipient is
requesting a reimbursement, they must submit the request for
reimbursement on SF 271, "Outlay Report and Request for
Reimbursement for Construction Programs." For Headquarters
awards, the SFO performs this review and the PO and GMO do
not see the payment request.
The GMO reviews reimbursement payment requests for
compliance with the cost sharing requirements of the agreement.
For Headquarters awards the SFO ensures compliance with the
cost sharing requirements.
The SFO is responsible for:
- Processing payment requests,
- Ensuring that payments to the recipient are proper and are
made within a reasonable time after receiving the payment
request. (For ACH recipients, however, EPA has 24 hours to
deny a request.)
If the PO wants to restrict the recipient's request (e.g., cannot
request above a certain percentage until a specific task or
product is delivered), the PO must make this a condition of the
award and inform the GMO and SFO of the limitation.
5/23/94 5'8
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CHANGES REQUIRING PRIOR APPROVAL/
FORMAL AMENDMENT
SITUATIONS WHICH APPLY
TO ALL RECIPIENTS
• ADDITIONAL
REQUIREMENTS FOR
STATE, LOCAL AND INDIAN
TRIBAL GOVERNMENTS
* ADDITIONAL
REQUIREMENTS FOR
NONPROFITS
VIEWGRAPH45
TITLE: Changes Requiring Prior Approval/Formal Amendment
KEY POINTS:
Recipients are permitted to rebudget within the approved direct
cost budget to meet unanticipated requirements and may make
limited program changes to the approved project. However,
certain post-award changes cannot be made without a formal
amendment to the agreement.
A recipient's request for a change must be accompanied by a
narrative justification for the proposed revision, and must be
submitted to the PO.
The PO should notify recipients in writing of disapprovals (with a
copy to the GMO) of requests for changes. This is necessary to
answer any future claims against EPA because the recipient
"thought" EPA had approved the change.
The PO must forward to the GMO requests for changes requiring
formal amendments. The PO must also include their
recommendation for approval.
Changes Which Require a Formal Amendment
All recipients
Any revision resulting in the increase or decrease in funds.
Transfer of funds allotted for training allowances, i.e., from
direct payments to trainees to other expense categories.
Carryover of funds.
5/23/94 5-9
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VIEWGRAPH # 5 (Continued)
TITLE: Changes Requiring Prior Approval/Formal Amendment
KEY POINTS:
Rebudgeting funds from construction to nonconstruction
activities, or vice versa.
Revisions to the objectives of the project.
Extensions to the period of availability of funds.
State, local government, and Indian Tribal Governments
Cumulative transfers among direct cost categories, or, if
applicable, among separately budgeted programs, projects,
functions, or activities which exceed or are expected to exceed
10% of the current total approved budget, whenever EPA's
share exceeds $100,000. (If less than $100,000, the recipient
does not need prior written approval, but should discuss with the
PO before doing.) For example, for a grant with an EPA share of
$150,000, the recipient transfers $15,000 from one budget
category to another, there is no requirement for prior approval. If
the recipient then transfers $18,000 from one category to another
(whether from the same category as before or not), the recipient,
must obtain prior approval from the Award Official.
Under nonconstruction projects, contracting out or otherwise
obtaining services of a third party to perform activities central to
the purpose of the award. (The procurement of equipment,
supplies, and general support services are approved in the
budget section.)
Changes in key project personnel, if key personnel are
identified in the agreement. For research projects, this means
a change in the project manager or principle investigator.
Universities of Higher Education and other Non-Profits
• Transfer of an award from one recipient to another.
Rebudgeting funds for indirect costs to absorb increases in direct
costs.
5/23/94 5>1°
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CHANGES WHICH DO NOT
REQUIRE PRIOR APPROVAL/
FORMAL AMENDMENT
Minor Adjustments to
Methodology or Approach
Minor Adjustments to
Project Budget
Staff Changes
VIEWGRAPH # 6
TITLE: Changes Which Do Not Require Prior Approval/
Formal Amendment
KEY POINTS:
Recipients may need to change their projects to respond to
changed conditions. Neither a formal amendment nor prior
written approval is necessary for minor changes that are
consistent with the project objective and within the scope of the
agreement. For example, recipients may, without prior written
approval:
- Make minor changes to the methodology, approach, or other
aspects of the project to meet objectives or to expedite
completion.
- Adjust their project budgets (except for adjustments requiring
formal amendments) provided they use the funds in
accordance with the approved workplan/narrative, EPA
regulations, arid applicable cost principles.
- Changes in the staff (other than key personnel), provided they
will not affect the objectives of the project.
However, the recipient should discuss these changes with the
PO because EPA is not obligated to pay for any changes that
result in cost overruns.
5/23/94 5-11
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TRANSFERRING AN AWARD
Transfer By Award of
New Assistance
Agreement
Transfer By
Amendment
VIEWGRAPH # 7
TITLE: Transferring an Award
KEY POINTS:
Recipients may request that EPA transfer a project to another
organization for a number of reasons, e.g., transfer of the Project
Manager to another organization, reorganization, changes in the
recipient organization's name.
There are two ways to transfer an award (procedures for each
may be found in Chapter 34 of the Assistance Administration
Manual).
- Terminate the existing award and make a new award. This is
called a "novation" and the PO should contact the GMO if this
is to be used.
- Amend the existing award.
If a legislative or other legal action (e.g., merger, divestiture,
reorganization, or recipient name change) affects the status of
the recipient, the Award Official may transfer the award to the
new recipient or change the recipient's name by issuing an
amendment.
5/23/94
5.12
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DEVIATIONS
Deviation Requests Include:
• Name, Assistance Identification
Number, Agreement Date, and
Award Amount
• Section of Regulation From
Which a Deviation is Needed
• Description of Circumstances
and Justifications
• Statement as to Whether
Similar Deviation Has Been
Made Previously for the Project
in Question
VIEWGRAPH#8
TITLE: Deviations
KEY POINTS:
Recipients are required to comply with all EPA requirements. In
some cases, however, it may be necessary to "waive" (deviate)
from a regulatory provision. EPA does not have the authority
to deviate from statutory or Executive Order requirements.
The Director, Grants Administration Division is the person
delegated by the Administrator to approve or disapprove
deviations from regulatory provisions.
Recipient deviation requests for Regional awards must be
submitted in writing to the Region or delegated State agency, as
appropriate. The Region (generally the GMO), with input from the
PO and the delegated State agency, as appropriate, then submits
the request to the Director, GAD for signature.
For deviations from Headquarters awards, the recipient sends the
request directly to the GMO, which processes and submits the
request to the Director, GAD for signature.
Deviation requests should be submitted as soon as the need
for the deviation is known, NOT AFTER THE FACT.
Each request for a deviation must include:
- The name of the applicant or recipient, the assistance
identification number of the application (if available) or award,
the date of the award, and the dollar value of the application or
award and the amount in question.
5/23/94 5-13
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VIEWGRAPH # 8 (Continued)
TITLE: Deviations
KEY POINTS:
- The section(s) of the regulation from which a deviation is
requested.
- A complete description of the circumstances, a careful analysis
of the situation, justification for the deviation, an explanation of
what the deviation will do, and any pertinent background
information, including a copy of the applicant's or recipient's
request.
- A statement as to whether the same or a similar deviation has
been previously requested for the same project, and if so, an
explanation as to why the previous request was made and the
outcome.
- If a deviation is requested for a project administered in a
Regional Office, the deviation must also contain the Region's
recommendation, including the delegated State's
recommendation, if appropriate, and the name of a contact in the
Regional Office who is most familiar with the request.
• GMO internal procedures may vary, so PO's should contact their
GMO to find out the required steps.
• The applicant may request a deviation before the agreement is
awarded. If a deviation is approved before award, the approval
will be contingent upon the approval of the application and award
of the assistance agreement.
The Award Official must incorporate the provisions of any
approved pre-award deviation in the agreement.
The GMO must retain a copy of each deviation decision in the
official assistance file. The PO should also keep a copy in the
project file.
• The Director, Grants Administration Division may reconsider the
decision if that decision was based on incomplete information.
5/23/94 5-14
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DISPUTES
Responsibility for Disputes
Resolution
Some EPA Actions not Subject
to Review
VIEWGRAPH # 9
TITLE: Disputes
KEY POINTS:
Whenever possible, disputes between EPA and recipients
should be resolved at the lowest level possible.
Each Award Official (Regional and Headquarters) may
designate one or more Disputes Decision Officials (DDO). The
Disputes Decision Official is responsible for deciding
disagreements between EPA and recipients (they may also
decide disputes with applicants).
The most frequent disputes are a result of recipient
disagreements with audit findings.
The following EPA actions cannot be disputed:
- Denials of deviation requests (40 CFR Parts 30 and 31);
- Bid protest decisions (40 CFR Parts 31 and 33);
- National Environmental Policy Act decision (40 CFR Part 6);
- Audit Resolution Board decisions (EPA Order 2750); and
- Debarments/suspensions (40 CFR Part 29).
For Headquarter awards, the disputee may request that the
appropriate Assistant Administrator review the dispute and
render the Agency's final decision. These requests must be
sent directly to the Assistant Administrator.
5/23/94 5-15
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VIEWGRAPH #9 (Continued)
TITLE: Disputes
KEY POINTS:
For disputes of Regional awards, if a recipient disagrees with a
decision made by a Disputes Decision Official, the disputee may
request a review by the Regional Administrator. The Regional
Administrator's decision is final unless the disputee requests a
discretionary review by the Assistant Administrator of the affected
program. If the Assistant Administrator does not elect to review the
dispute, the Regional Administrator's decision is the final Agency
action. If the Assistant Administrator reviews the dispute, the
Assistant Administrator's decision is the final Agency action.
5/23/94 5-16
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EPA RESPONSE TO
RECIPIENT PERFORMANCE
• NONCOMPLIANCE AND HIGH
RISK
• PERFORMANCE-BASED
ASSISTANCE POLICY
VIEWGRAPH4HO
TITLE: EPA Response to Recipient Performance
KEY POINTS:
EPA officials are faced with a wide range of potential problems
involving participants in the assistance process. The participant may
be an assistance recipient, a contractor, a subcontractor, or a
supplier to a recipient. In some cases, the problem may involve a
technical matter which can easily be resolved by informal discussions
with the participant. At other times, the matter may involve
nonperformance, poor performance, or a criminal matter which places
the Agency's assistance programs at significant risk.
To deal with noncompliance or high risk participants, Award Officials
may impose special conditions on the award, find a person or
organization non-responsible to receive an award, issue stop work
orders, withhold payment of funds, terminate or annul an award, or
initiate an investigation to determine if further action is necessary.
Further, after all administrative remedies are exhausted, the Director,
OGD, may suspend and/or debar any person or organization from
participation in all EPA assisted activities for a specified period of
time.
For Continuing Environmental Program grants, EPA developed a
"Policy on Performance-Based Assistance" to ensure a consistent
effort within the Agency to assess recipient performance against
negotiated commitments, to reward accomplishments, and to correct
problems (See Appendix L for a copy of the policy.)
Because the remedies for recipient noncompliance may have
ramifications outside the Agency, it is important that any Agency
action be coordinated among the various offices concerned. Principal
participants in the decision to take an action are the program office,
GMO, and the Office of General Counsel or Office of Regional
Counsel. The Office of Inspector General (OIG) is also a key
participant in suspension or debarment actions or where a matter
may involve an audit or potential criminal wrongdoing.
5/23/94 5-17
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PROJECT OFFICER
ROLES AND
RESPONSIBILITIES
• TECHNICAL EXPERTISE
• DAY-TO-DAY MANAGEMENT OF
THE AGREEMENT
• FOCAL POINT FOR PROGRAMMATIC
ISSUES
VIEWGRAPH4M1
TITLE: Project Officer Responsibilities
KEY POINTS:
• In this phase, the PO is responsible for:
- Monitoring all activities and the recipient's progress on the project.
- Reviewing progress reports and other work products to assure that
the recipient is complying with the applicable regulations and the
programmatic terms and conditions in the agreement. These
products should be reviewed for timeliness and completeness. The
PO must also track the receipt of programmatic reports and
work products and inform the GMO when they are received so that
the GMO can keep track of reports and work products in the grant.
- Providing comments to the recipient on the progress reports and
other work products and sending copies to the GMO if funding is
potentially affected.
- Providing technical assistance to recipients when requested or
required by terms and conditions of the award.
- Maintaining the official technical project file and ensuring that it is
complete.
- Maintaining a record of communications with the recipient and
providing, as appropriate, the GMO or other EPA offices with copies
of pertinent correspondence to and from the recipient.
- Advising the GMO whenever anything occurs which could endanger
the successful completion of the project, and working with these
offices to decide what actions need to be taken to assure that the
project will be completed as designed , that funds are spent
properly, and, if necessary, what sanctions would be appropriate.
5/23/94
5.18
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VIEWGRAPH#11 (Continued)
TITLE: Project Officer Responsibilities
KEY POINTS:
- Reviewing requests for modifications (time extensions,
additional funding , etc.) and recommending to the GMO
whether the agreement should be changed.
- Recommending to the GMO whether an agreement should be
terminated.
- Reviewing the Financial Status Reports (SF 269 or 269a).
- Meeting with the GMO to discuss administrative/financial
problems and issues on an "as needed" basis.
- Conducting periodic reviews to assure that the recipient is
complying with the terms and conditions of the agreement.
The PO should provide the GMO a copy of the evaluations.
- Communicating regularly with any other program staff with
responsibility for aspects of the project/program to keep
apprised of the progress on issues which need resolution.
- Assisting the recipient, where appropriate, with the development
of an Action Plan for conducting subsequent years of the project.
- Providing input to their GMO on recipient's requests for any
rebudgetihg or other actions which require EPA prior approval.
- Notifying the GMO if the recipient is not complying with the
terms & conditions of the agreement.
5/23/94
5.19
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GRANTS MANAGEMENT OFFICE
ROLES AND
RESPONSIBILITIES
• ADMINISTRATIVE EXPERTISE
• ASSURE ADMINISTRATIVE
REQUIREMENTS ARE MET
• FOCAL POINT FOR ADMINISTRATIVE
ISSUES
VIEWGRAPH* 12
TITLE: Grants Management Office Roles and
Responsibilities
KEY POINTS:
In this phase, the GMO is responsible for:
- Maintaining the official administrative file and ensuring that the file
contains all required materials, records, and documentation.
- Assuring that all reports and work products required by the agreement
are received in EPA . Some reports may go directly to the PO (e.g.,
progress reports), or the FMO (e.g. Federal Cash Transaction
Reports) but the GMO has to ensure that all reports required by the
agreement have been received. Some GMOs may ask the POs to
send a memorandum certifying that all programmatic reports and work
products were received on time and were of acceptable quality.
- Reviewing the Financial Status Reports and resolving any
discrepancies.
- Monitoring the financial and management aspects of awards through
reviews of reports, correspondence, site visits, or other appropriate
means.
- Ensuring that the recipient complies with the applicable administrative
requirements, including certifications, procurement, and indirect cost
agreements.
- Conducting oversight reviews of recipient's administrative systems,
e.g., procurement, property, and general administrative.
5/23/94 5-20
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RECIPIENT
ROLES AND
RESPONSIBILITIES
COMPLYING WITH ALL
REQUIREMENTS IN THE
AGREEMENT
VIEWGRAPH#13
TITLE: Recipient Roles And Responsibilities
KEY POINTS:
In this phase, the recipient is responsible for:
- Expending and accounting for funds in accordance with the
agreement, program regulations, and statutes.
- Accounting for total project costs and segregating allowable and
unallowable costs.
- Conducting procurements in accordance with the appropriate
procurement rules, including ensuring that debarred or suspended
bidders are not awarded a contract using Federal funds.
- Complying with the appropriate Disadvantaged Business Utilization
requirements and ensuring that their subcontractors comply with the
requirements.
- Recording the receipt and expenditure of program income as a
project transaction.
- Complying with the appropriate property purchase, management,
and disposition requirements.
- Complying with EPA requirements and the Uniform Relocation
Acquisition Assistance and Real Property Acquisition Act, if real
property is purchased under the agreement.
- Requesting the Award Official's required approval for a formal
assistance amendment.
- Requesting the PO's approval for an informal amendment.
- Complying with all applicable reporting requirements, including
submitting progress reports, Financial Status Reports, MBE/WBE
reports.
5/23/94 5-21
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OTHER OFFICE
ROLES AND
RESPONSIBILITIES
• FINANCIAL MANAGEMENT OFFICE
• OFFICE OF GENERAL COUNSEL
• MBE/WBE COORDINATORS
VIEWGRAPH4M4
TITLE: Other Office Roles And Responsibilities
KEY POINTS:
Financial Management Office (FMO)
• Processing requests for payments.
Complying with any request from the GMO to restrict
payment for appropriate programmatic or administrative
reasons. For instance, the PO may want to review and
approve the results of one part or activity of the work before
allowing the recipient to draw down on additional funds.
Office of General Counsel/Regional Counsel
• The Office of General or Regional Counsel may need to be
involved from time to time as legal issues arise.
MBE/WBE Coordinator
• The MBE/WBE Coordinator ensures that, when required,
recipients send in completed MBE/WBE reports (SF 334,
"MBE/WBE Utilization under Federal Grants, Cooperative
Agreements, and Other Federal Financial Assistance")
5/23/94 5-22
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MODULE VI
-------
ASSISTANCE
PROJECT OFFICERS
TRAINING COURSE
MODULE VI
CLOSEOUT
-------
CLOSEOUT OF ASSISTANCE
AGREEMENTS
BY THE END OF THIS MODULE YOU
WILL BE ABLE TO:
Understand the Process For Closeout of
Assistance Agreements
Describe the Roles and Responsibilities
During Closeout
VIEWGRAPH # 1
TITLE: Closeout of Assistance Agreements
KEY POINTS:
This module describes the major steps of the Closeout process for
EPA program and project-type assistance agreements and indicates
unique closeout procedures for: (1) Waste Water Treatment
Construction grants (WWT construction grants), (2) Continuing
Environmental Program grants, and (3) Superfund Cooperative
Agreements (Superfund CAs).
This module also describes the specific roles and responsibilities of
EPA staff and recipients during closeout.
5/23/94 6.1
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PURPOSE OF CLOSEOUT
Proper Closeout Ensures the
Completion of All:
Technical Work
• Administrative Work
VIEWGRAPH#2
TITLE: Purpose of Closeout
KEY POINTS:
The closeout process is a systematic method of ensuring that all
technical work (e.g., product development, construction) and
administrative requirements (e.g., review of FSRs) have been
finalized.
Closeout is initiated when a project ends due to completion or
termination. A project may be terminated because of insufficient
funds, non-funding of a renewal, or decision by the recipient or EPA
not to continue the project/program.
Closeout ensures a final accounting of expenditures and an
assessment by the PO that all technical work has been completed
and is satisfactory.
Closeout also ensures that any remaining unobligated funds are
deobligated.
• A task force developed new agency closeout policy on all EPA
programs. A final policy was issued August 27,1992, and the
Assistance Administration Manual will be updated. (See Appendix T.)
5/23/94
6.2
-------
ROLES AND RESPONSIBILITIES
Category
Technical Issues
Rnancial Issues
Legal Issues
Institutional Issues
(Super-fund Clean ups)
Property
Inventions
Recipient Role
• Submits Final Technical
Report/Product
• Submits final FSR and/or
final payment request
• Completes Cost Recovery
Requirements (Supertund)
Provides Notification of
Settlements (Superfund)
• Provides Assurance that
Institutional Controls, if
Required, are in Place
• Requests disposition
Instructions
• Submits inventions
report
EPA Role
• PO provides comment to recipients
• PO Notifies GMO of acceptance or
rejection
• FMO Settles Billings and Payments
• GMO & PO Review and Approve
Rnancial Status Report
• GMO Amends Agreement or issues
Assistance Adjustment Notice
• GMO & FMO Deobligate balances
• GMO & PO Assure All Audit
Exceptions Are Resolved
• GMO & PO Resolve Any Disputes
• GMO Documents Closure in Files
- GMO, PO, & FMO maintain Official
Records
• PO disposition of property
• GMO Provjdes Disposition
Instructions'
• OGC Resolve patent interest
• GMO provides instructions
VIEWGRAPH # 3
TITLE: Roles and Responsibilities
KEY POINTS:
This viewgraph provides an overview of the recipient's and EPA's
roles and responsibilities in the closeout requirements for assistance
agreements.
All assistance agreements are subject to audit. However, audit is
not a requirement prior to closeout.
5/23/94
6.3
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TIMING OF CLOSEOUT
TYPE OF AGREEMENT
CONTINUING ENVIRONMENTAL
PROGRAMS
SUPERFUND
Pre-Remedial CA
Single Site CA
Multi-Site CA
Core Program CA
AH
TIMING OF CLOSEOUT
When Project Ends
When previous Continuation Agreement
Ends
When PA &S! Activities Are
Completed
When Work Is Completed
When Work Is Completed at Each
Site/Activity and upon Completion of all
Site Activities
When Managerial and Administrative
Responsibilities Have Been Completed
When project !s completed, terminated, or
annulled
VIEWGRAPH#4
TITLE: Timing of Closeout
KEY POINTS:
Formal closeout can occur only when all parties are satisfied with the
final product, all eligible costs have been accepted, all repayments
have been received, all terms and conditions or Special Conditions
have been met. If an audit is underway prior to closeout, all issues
must be resolved prior to closeoui.
The timing of closeout depends primarily on the type of agreement.
The viewgraph illustrates when closeout of various types of
agreements should take place.
Closeout of most non-Superfund project grants, including WWT
Construction grants, begins when the project period has expired.
Closeout of Continuing Environmental Program grants begins on the
date the previous, most recent, Continuation Agreement expires.
Closeout of Superfund Cooperative Agreements occurs at the following
times:
Pre-remedial - when all preliminary assessment/ site inspection
(PA/SI) activities have been completed or terminated at all sites.
Single-Site CA - when all activities covered by the statement of
work (SOW) are completed or terminated at that site.
5/23/94
6.4
-------
VIEWGRAPH # 4 (CONTINUED)
TITLE: TIMING OF CLOSEOUT
KEY POINTS:
Superfund Multi-Site Cooperative Agreement (MSCA) - is
somewhat different from other CAs.
o Closeout of an individual site covered by the MSCA occurs when
all activities at that site are completed or terminated.
o Closeout of the MSCA occurs when all activities at all sites
covered by the SOW have been completed or terminated.
Superfund Core Program Cooperative Agreements (CPCAs) - when
the State has completed .the activities specified in the SOW.
5/23/94 6.5
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INITIATING CLOSEOUT
To Initiate ClOMout, GMOs Must:
• Obtain "Status Report of Projects
Completed But Not Closed Out"
• Ensure the Accuracy of the Status
Report
• Send "Reminder Letter" For Projects
Scheduled to End In 90 Days
Update GICS When the Status of Project
Changes
VIEWGRAPH # 5
TITLE: Initiating Closeout
KEY POINTS:
Monthly, the GMO should obtain and review the "Status Report of
Projects Completed But Not Closed Out" through the Grants
Information Control System (GICS).
90 days prior to the project expiration date, the GMOs are to send a
"Reminder Letter" to remind the recipient and Project Officer of the
closeout requirements. The GMOs will update GICS when the status
changes.
• The PO informs the GMO in writing (for file documentation) if the
project should be closed out or extended.
5/23/94
6.6
-------
DELIVERY OF PRODUCTS AND REPORTS
THE RECIPIENT MUST DELIVER:
VIEWGRAPH # 6
TITLE: Delivery of Products and Reports
KEY POINTS:
The PO must provide the GMO with written confirmation that:
- Project is completed;
- Final report/product(s) were submitted and are satisfactory and
comply with Agency Peer and Publication Review requirements.
- The PO must inform the GMO how property purchased under the
agreement, if any, should be handled. (See Appendix U for property
disposition requirements.)
Other reports:
- Invention Report - EPA Form 3340-3: If the project resulted in
any inventions being produced, the recipient must report them on
this form to the Award Official. The PO should be aware of any
inventions, and should remind the recipient to submit this report;
Request for final payment: The PO should remind the recipient
to submit a final SF 270, "Request for Payment," or SF 271,
"Outlay Report and Request for Reimbursement." In
Headquarters, the GMO will notify the recipient through an
Assistance Adjustment Notice to request final payment, and
- MBE/WBE Reports - SF 334: The recipient must submit a final
report on their contracting with MBE/WBE firms.
If the recipient used any Federally owned property, the recipient must
ensure the proper disposal of this property before closeout can be
completed. Once the GMO receives the recipient's list of Federally
owned property, it must notify the recipient of property disposition
requirements.
5/23/94 6.7
-------
VIEWGRAPH #6 (Continued)
TITLE: Delivery of Products and Reports
KEY POINTS:
Recommended disposition of funds: remaining funds are
treated differently for Regional and Headquarters
administered awards. Regional POs must inform their
GMO how the program recommends handling any
remaining funds. In Headquarters, any remaining funds will
be deobligated.
If a recipient owes EPA funds, the recipient has 30 days to
pay this debt. The GMO will inform the FMO of the debt in
order that IFMS can establish an accounts receivable. The
assistance agreement cannot be closed out until the debt is
paid.
After receiving and reviewing all deliverables, the GMO will
prepare a closeout letter/amendment (using the Assistance
Adjustment Notice (EPA Form 5700-42), indicating the
disposition of any unused funds. At this time, the GMO
notifies the FMO to deobligate any unobligated balances.
Peer and Publications Review Requirements.
EPA encourages the independent publication of the results
of its assistance research in appropriate scientific journals
as an important method of recording and reporting scientific
information. Any journal article so published must contain a
disclaimer that even though it has been funded with EPA
funds, it has not been subjected to the Agency's peer and
policy review and does not reflect the views of EPA (See
Appendix V, page 7 for the exact wording of the disclaimer).
The recipient should send a courtesy copy of the paper to
the EPA PO who is responsible for forwarding it to the
appropriate Office Director, Associate, Assistant, or
Regional Administrator, and the Science Advisor. EPA
Order 2200.4, "Review Process for Scientific, Informational,
and Educational Documents," identifies which documents
are exempt from this process (e.g., Congressional
testimony; press releases; legal opinions; Requests for
Proposals, etc.) and which documents must go through the
process (all scientific, informational, or educational
publications designed for public distribution and created by
an EPA employee, contractor, recipient, or consultant
unless specifically exempted by the Order.)
5/23/94 6.8
-------
VIEWGRAPH # 6 (Continued)
TITLE: Delivery of Products and Reports
KEY POINTS:
The PO is responsible for insuring that adequate EPA
review consistent with the rights and data clauses of EPA
assistance agreements is conducted, including the
approvals by appropriate Associate, Assistant, or
Regional Administrators, the Science Advisor, and the
Office of Public Affairs, if necessary.
For all Reports accepted for publication, the Project Officer
submits a Technical Data Report (EPA Form 2220-1) to the
appropriate GMO and submits a Technical Data Report and
two copies of the Final Progress Report to the Headquarters
library.
5/23/94 6.9
-------
PROJECT OFFICER
ROLES AND
RESPONSIBILITIES
CERTIFY ALL WORK PRODUCTS
SUBMITTED
RECOMMEND DISPOSITION OF
PROPERTY
RESPOND TO OIG QUESTIONS
VIEWGRAPH # 7
TITLE: Project Officer Responsibilities
KEY POINTS:
In this phase, the PO is responsible for:
- Certifying to the GMO within 90 days of project completion, that
all project activities were satisfactorily completed and all work
products submitted as required in the agreement.
- Providing assistance as necessary to recipients and the GMO
to assure that the agreement is closed out in a timely manner.
- Discussing equipment disposition and closeout of technical
requirements with the recipient at least 30 days prior to project
completion.
- Obtaining assistance and advice, if necessary, on property
disposition issues (including transfer or reimbursement issues)
or on any follow-up action relative to incomplete outputs,
including the need for sanctions.
- If there is an audit of the project, the PO will be required to
respond to any programmatic issues and may be the
responsible program person to ensure that the recipient
complies with any programmatic audit recommendations.
5/23/94 6.10
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GRANTS MANAGEMENT OFFICE
ROLES AND
RESPONSIBILITIES
• INITIATE CLOSEOUT
• INFORM OIG OF PENDING
CLOSEOUT, IF REQUIRED
• DEOBLIGATE FUNDS
• RESPOND TO OIG QUESTIONS
VIEWGRAPH # 8
TITLE: Grants Management Office Roles and
Responsibilities
In this phase, the GMO is responsible for:
- Initiating the closeout process by sending the recipient and PO a
reminder letter 90 days before the project period expires.
- Informing the Office of Inspector General of pending closeouts of
Wastewater Construction Grants and Superfund projects.
- Taking necessary, actions.to close out awards when all project work in
the agreement is completed.
- Issuing an amendment/Assistance Adjustment Notice to deobligate
remaining funds.
- If there is an audit of the project, the GMO will respond to any
administrative findings and recommendations. If there are
administrative recommendations affecting the recipient, the GMO will be
responsible for following up to ensure that the recipient complies with the
recommendations.
5/23/94 6.11
-------
OTHER PLAYER'S
ROLES AND
RESPONSIBILITIES
RECIPIENT
SFO/FMO
VIEWGRAPH # 9
TITLE: Other Player's Roles And Responsibilities
KEY POINTS:
• In this phase, the recipient is responsible for:
- Responding to any inquiries from the PO and GMO.
- Submitting technical, financial, and administrative reports as
required.
- If an audit is conducted, providing the auditors with all necessary
information, documentation, etc. related to the agreement.
In this phase, the SFO is responsible for:
- Reviewing the Integrated Financial Management System (IFMS)
record and working with the GMO to resolve any differences
between the final Financial Status Report and IFMS balance.
- Deobligating from IFMS any remaining balance and reducing the
Automated Clearinghouse or payment records, as necessary.
- Responding to any financial audit questions during an audit.
5/23/94 6.12
-------
DOs and DONTs
VIEWGRAPHtflO
TITLE: Dos and Don'ts
KEY POINTS:
5/23/94 6.13
-------
MODULE VII
-------
ASSISTANCE
PROJECT OFFICERS
TRAINING COURSE
MODULE VII
AUDIT
-------
AUDITS
THIS MODULE WILL:
• DESCRIBE THE BASIC AUDIT
PROCESS
• DESCRIBE THE POs ROLE IN
THE AUDIT PROCESS
VIEWGRAPH #1
TITLE: Audits
KEY POINTS:
The Inspector General Act authorizes the Inspector General
(IG) to have access to all records, reports, audits, reviews,
documents, papers, recommendatiphs, or other material
available to the Agency. To meet its responsibilities, the IG
must have the cooperation of Agency personnel.
Title 18, United States Code, Section 1516 states that whoever,
with intent to deceive or defraud the United States, endeavors
to influence, obstruct, or impede a Federal auditor shall be fined
or imprisoned. Therefore, it is imperative that all personnel
recognize, their obligation to make full disclosure of information
pertaining to instances of waste, fraud, or abuse.
The next few slides will provide an overview of EPA's audit
process, identify some of the key individuals involved in
conducting and resolving audits, how to survive an audit, and
the PO's responsibilities during the audit and during audit
resolution.
EXERCISE:
Discuss the following questions based on the audit experience
of the class members.
How can an audit help us perform our jobs?
• What does an auditor look for during an audit?
5/23/94 7.1
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TYPES OF AUDITS
Internal Audits
External
Audits
VIEWGRAPH # 2
TITLE: Types of Audits
KEY POINTS:
Internal audits are performance audits that examine the
programs or operations of Federal agencies. (However, as
part of an internal audit, State agencies or assistance recipients
may be evaluated to provide further information about the
performance of a Federal agency.) Internal audits are used to
test the adequacy of an organization's regulatory compliance
and financial reporting. Additionally, they are used to test the
effectiveness of its resource management, operating
procedures, program results, and financial operations. Internal
audits may evaluate the entire organization or only one or two of
an organization's programs or operations. Internal audits of EPA
are conducted by the U.S. General Accounting Office (GAO) or
EPA's Office of the Inspector General (EPA OIG).
External audits are audits that examine a Federal agency's
assistance recipients. These audits are conducted by the EPA
OIG or its contractor, or, in the case of Single Audits, by the
recipient. They may be performed before, during, or after the
completion of a project. Examples of external audits include
single audits, pre-award audits, interim and final cost audits, and
indirect cost audits.
Single audits are financial and compliance audits of State
and local governments or universities and nonprofits that
are performed in accordance with OMB Circular A-128 (for
States, local governments, and Indian tribes), or OMB
Circular A-133 (for universities and other nonprofits).
5/23/94 7.2
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VIEWGRAPH # 2 (Continued)
TITLE: Types of Audits
KEY POINTS:
Pre-award audits are reviews conducted to evaluate
prospective cost or pricing data.
Interim and final cost audits are reviews conducted to
assess the alienability of costs claimed under the
assistance agreement or contract and to ensure
compliance with the applicable requirements and award
conditions.
- Indirect cost audits are reviews conducted to determine
whether the prospective indirect cost rate properly
allocates allowable costs.
Audits of recipients may be requested by the program
office, GMO, or Award Official when considered
necessary. These requests should be made on EPA Form
5700-29, "Assistance Audit Request." The PO may submit
the form directly to the appropriate Divisional Office of the
Assistant Inspector General of Audits (DIGA), but to the
extent possible, the POs should coordinate requests for
audits with the GMO.
EPA is authorized to audit the financially-assisted activities of
any recipient organization. However, it is Federal policy to
place maximum reliance on a recipient's own audits (i.e.,
Single Audits) if they are carried out in accordance with
applicable Federal audit standards.
5/23/94 7.3
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AUDIT OFFICIALS
• Inspector General
• Agency Audit
Follow-up Official
• Disputes Decision
Official
• Audit Follow-up
Coordinator
• Action Officials
• Award Officials
VIEWGRAPH # 3
TITLE: Audit Officials
KEY POINTS:
On behalf of EPA's Inspector General, the Office of the
Assistant Inspector General for Audits (OAIGA) arranges for
and monitors the audits of EPA's financial assistance program
activities.
The Agency Audit Follow-up Official is responsible for
Agency-wide audit resolution and implementation of required
corrective actions. The Assistant Administrator for
Administration and Resources Management is the Agency
Audit Follow-up Official.
The Audit Follow-up Coordinator (AFC) is responsible for
the day-to-day activities that relate to audit management,
response, and resolution. These individuals are designated
by the Regional Administrators or Assistant Administrators.
The Disputes Decision Official (DDO) is responsible for
resolving all action regarding recipients. This person also
serves as the Action Official for grant reports.
The Action Official is responsible for responding (on behalf of
the audited organization) to the draft and final reports and for
all actions required to deal with the specific OIG report. For
grants, it is the Disputes Decision Official.
The Award Official is responsible for designating the
Disputes Decision Official.
5/23/94
7.4
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THE AUDIT PROCESS
L
Entrance Conference
1
t
f
1
1
1
1
Advisement of Findings
f
Exit Conference
1
Draft Report
t
Final Report
1
Audit Resolution
|
|
|
|
J
VIEWGRAPH # 5
TITLE: The Audit Process
KEY POINTS:
At the entrance conference, the auditors explain the purpose and
scope of the audit and receive comments from the organization
being audited regarding potential audit areas. All personnel with
extensive knowledge of the area being audited should be at the
entrance conference. The DIG will ask the AFC for the program
and GMO contacts for this audit, and will provide a list of key audit
personnel.
During the audit, the auditors provide the organization with
feedback about preliminary findings and developing issues. If the
organization believes that any of these findings are invalid, based
on factual information, it should discuss this with the auditors.
Further, significant or sensitive findings should be brought to the
attention of the organization's senior management immediately.
At the exit conference, the auditors discuss the audit findings with
the organization to clarify any questions they may have about the
audit.
Shortly after the audit is completed, a draft report is issued. The
report contains the auditor's findings and documentation to support
these findings.
5/23/94 7.5
-------
VIEWGRAPH # 5 (cont.)
TITLE: The Audit Process
KEY POINTS:
After receiving the draft report, the organization is expected to
provide a written response to the audit findings contained in the
draft report within 30 days. The organization's response should
concur with the findings or provide an explanation for its
disagreement. If the organization has planned or implemented
corrective actions, these should be documented in the response
as well.
After the exit conference, the auditors develop a draft audit report
containing their findings and recommendations. After receiving
this report, the organization's management has 90 days, if the
findings are over $100,000, to provide OIG with a response that
either documents concurrence with the audit report or proposes
alternative corrective actions for addressing the findings.
Audit resolution occurs either when a "final determination" is
issued (in the case of an external audit), or when a "final
response" is issued (in the case of an internal audit). For EPA
OIG audits containing significant findings of $100,000 or more,
the Action Official must obtain the concurrence of the EPA OIG
on proposed corrective action.
• Under the Inspector General Act Amendments, EPA
management must track audit follow-up actions until all corrective
actions identified in its management decision are complete.
Further, EPA management must report to Congress
semi-annually on the status of audit resolution and follow-up
activities, as well as provide an explanation for audits not
resolved within 180 days and final actions that have remained
incomplete for one year or more. Currently, EPA's Resource
Management Division prepares the semi-annual report to
Congress on audit resolution and implementation of corrective
action.
5/23/94 7.6
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SURVIVING AN AUDIT
• DOCUMENTATION
• COURTESY
• PREPARATION
• COMMUNICATION
VIEWGRAPH # 6
TITLE: Surviving an Audit
KEY POINTS:
To help make the audit process proceed as smoothly .as
possible, POs should keep the following in mind:
Documentation:
- The PO must document in the official Project File all
decisions, communications, memos, etc. from the beginning
of the agreement (see Appendix S). The auditors will
assume that the PO has approved all actions taken by the
recipient unless there is some documentation in the file to
show otherwise.
- Be responsive to requests for information. Make all
documents available to the auditors. Remember, everything
in the file is subject to review, e.g., records, memos, and
telephone messages.
• The following are some guidelines to follow when interacting
with the auditors:
Courtesy.
- Maintain good working relationships with the auditors.
- Use audit as an opportunity to identify and address
weaknesses.
5/23/94 7.7
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VIEWGRAPH #6 (Continued)
TITLE: Surviving an Audit
KEY POINTS:
Preparation.
- Determine what auditors will look for.
- Cooperate & demonstrate steps already taken to resolve issues
oi agree to take corrective actions.
- Demonstrate knowledge of program.
- Ask other POs who have been through an audit what to expect
during an audit.
Communication.
- Answer all questions.
- Tell auditors what action(s) you have taken to improve problem
areas.
- Be truthful. Discuss all problems and issues; give auditors all data
they request.
- Advise auditors of matters which you believe they should review
during the audit.
5/23/94 7.8
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bOS AND DONTS
VIEWGRAPH #7
TITLE: Dos and Don'ts
KEY POINTS:
5/23/94 7.9
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MODULE VIII
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ASSISTANCE
PROJECT OFFICERS
TRAINING COURSE
MODULE VIII
INTERAGENCY AGREEMENTS
-------
DEFINITION OF AN IAG
AGREEMENT BETWEEN EPA AND A
FEDERAL AGENCY, STATE, OR
LOCALITY.
IAGS PROVIDE:
• GOODS OR SERVICES IN
EXCHANGE FOR FUNDS,
• MISSION SUPPORT OR
ENVIRONMENTAL POLICY
WITHOUT EXCHANGE OF FUNDS
VIEWGRAPH # 1
TITLE: Definition of an IAG
KEY POINTS:
The acronym "IAG" is used as an abbreviation for both:
- Federal interagency agreements, and
- Intergovernmental agreements between a Federal agency and
a State or local government.
There are 2 participants in lAGs:
- "Ordering Agency," which pays for the goods or services, and
- "Servicing Agency," which provides the goods or services.
• lAGs are not assistance agreements. They are used for different
purposes. lAGs and assistance agreements are alike in the
monitoring requirements for POs.
lAGs are subject to the "Servicing Agency's" rules and regulations
and to any special conditions the "Ordering Agency" places on the
IAG, e.g., MBE/WBE requirements, Superfund audit.
EPA can provide funds to States and local governments only
under an assistance agreement.
5/23/94 8.1
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VIEWGRAPH # 1 (Continued)
TITLE: Definition of an IAG
KEY POINTS:
THERE ARE FOUR (4) TYPES OF IAGS
Federal Interagency Agreements
Written agreements between Federal agencies under which goods
and services are provided in exchange for funds, or where services
are exchanged without payment. (See Appendix W for a sample
IAG.)
lAGs where funds are exchanged involve either:
- One agency providing goods or services to another agency, or
- Both agencies having a mutual need for the goods or services
and sharing in the costs incurred.
lAGs may be awarded to any Federal agency, including bureaus
and offices within an Agency. Government-owned,
contractor-operated facilities (GOCOS) such as the Department of
Energy's labs, (e.g., Lawrence Livermore) are considered
components of the Federal government and, therefore, eligible to
receive lAGs. (The District of Columbia is not a Federal agency.)
"Policy Agreements or Memorandums of Understanding"
These are lAGs where no funds change hands. These
agreements set forth basic policies and procedures governing the
relationship between the agencies (i.e., their respective roles and
responsibilities) to accomplish a joint goal or project. An example is
the agreement between EPA and the Department of Energy,
whereby EPA will lead a Superfund cleanup at a Federal facility.
Intergovernmental Agreements
These are agreements between a Federal agency and a State or
local government under which the State or local government
reimburses the Federal agency for the costs of providing a
specific technical service, e.g., statistical studies and compilations,
technical tests and evaluations, training, surveys, reports,
documents, and data.
5/23/94 8.2
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VIEWGRAPH #1 (Continued)
TITLE: Definition of an IAG
KEY POINTS:
International Agreements.
These are under which work will be conducted for a foreign
government or international organization. EPA uses the EPA IAG
form for these agreements.
The Office of International Activities (OIA) must be involved as soon
as practicable after the need for foreign agreements is known.
The OIA must approve every international agreement. The OIA
is responsible for obtaining State Department and the Trade
Development Agency's approval when the IAG includes international
activities. OIA must also obtain the Office of General Counsel's
approval.
lAGs cannot be used to provide funds directly to a foreign
government or international agency. Funds may be transferred to
these agencies only under an assistance agreement between EPA
and the foreign entity. However, EPA can use one of pur
Cooperation Authorities to join with other federal agencies to
provide goods or services to foreign governments through contracts
or assistance agreements as long as both EPA and the other
agency have responsibility/authority for the proposed project. For
example, EPA provided waste water treatment equipment for Poland
by transferring the funds to the Corps of Engineers which did the
purchasing.
EPA can accept funds directly from the foreign governments and
organizations to provide services to those entities (funds-in). These
"foreign"agreements are authorized by the Foreign Assistance Act
and must be approved by the Trade Development Agency.
5/23/94 8.3
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AUTHORITY
• ECONOMY ACT OF 1932
• COOPERATION AUTHORITIES
• INTERGOVERNMENTAL
COOPERATION ACT
VIEWGRAPH # 2
TITLE: Authority
KEY POINTS:
THE ECONOMY ACT OF 1932
• The Act is the general authority which authorizes Federal agencies
to exchange goods and services and to reimburse one another.
- The primary purpose of the Act is to allow an agency to obtain
goods or services from another agency to improve economy and
efficiency in the government.
- This Act is often used to fund lAGs which bolster one agency's
capability to conduct an activity in a specific area with another
agency's expertise.
- To use the Economy Act, both Federal agencies must be
inherently responsible for conducting the proposed
activities and authorized to use their appropriation for the
work. Under these lAGs, EPA provides the service or
goods with its own staff or through agency contracts.
- The "Ordering Agency" (Agency who paying for the service or
goods received) must also determine that the work does not
conflict with any other agency's authority or responsibility.
- If the work involves the use of a commercial or industrial activity
operated by the "Servicing Agency" (Agency providing the goods
or service), the "Ordering Agency" must also determine that the
acquisition conforms to the "contractor versus government
performance" requirements of the Federal Acquisition
Regulation, which explains when the Federal government may
compete with the private sector.
5/23/94 8.4
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VIEWGRAPH #2 (Continued)
TITLE: Authority
KEY POINTS:
COOPERATION AUTHORITIES
EPA also has authority to enter into lAGs with other Federal agencies
under "cooperation" provisions of our program statutes, e.g., §103 of the
Clean Air Act, and §104 of the Clean Water Act. If the receiving agency
will use any of the funds to fund a grant or cooperative agreement, EPA's
IAG must identify EPA's statutory authority to award a grant or
cooperative agreement.
INTERGOVERNMENTAL COOPERATION ACT
The Intergovernmental Cooperation Act is the general authority which
allows State and local governments to obtain goods/services from the
Federal government. It authorizes, in part an Intergovernmental
Agreement between a Federal agency and a State or local government
under which the Federal agency provides technical services it is
especially capable to perform in exchange for reimbursement. The
Office of Management and Budget Circular A-97 provides detailed
guidance for these agreements.
Intergovernmental agreements can involve services from an EPA
contract only if:
- The State or local government certifies that the services are not
reasonably and quickly available through ordinary business channels;
and
- The services performed under the contract are regular and continuing
activities performed by the agency (i.e., almost as if the contractor were
doing regular work of the agency, such as, contractors working on site
at EPA labs.)
For example, GAD recently had a request from a State to allow it
access to one of EPA's PC maintenance contracts, however, this is
not fundable because it is a service not normally provided by EPA and
it is readily available through ordinary business channels.
5/23/94 8.5
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IAG GUIDANCE
• COMPENDIUM
• PRINCIPLES OF
FEDERAL
APPROPRIATIONS
LAW
VIEWGRAPH #3
TITLE: IAG Guidance
KEY POINTS:
There are no EPA regulations which apply to the development and
management of an IAG. Instead, EPA uses:
- The IAG Compendium. "Interagency Agreement Policy and
Procedures Compendium" The Compendium is a compilation of
information pertaining to lAGs. It includes information in general
terms that apply to all EPA programs and offices that use
lAGs. It is specifically directed to EPA program administrative and
financial staff who have an active part in developing and
administering lAGs.
- Appropriations law. Many IAG issues revolve around interpretation of
appropriations law. For example, EPA can not use an IAG to
augment EPA's appropriations. We must use funds only for the
purpose they were appropriated and only as long as they are
available. The Comptroller General's "Fundamentals of
Appropriations Law" (the Red Book) provides guidance in making
these determinations.
All IAG EPA-wide guidance is developed by the Grants Administration
Division, Grants Information and Analysis Branch. Program offices may
develop office-specific procedures where appropriate.
5/23/94 8.6
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AVAILABILITY OF FUNDS
APPROPRIATION UNDER
THE ECONOMY ACT
PROJECT PERIOD FOR
COOPERATION PROVISIONS
VIEWGRAPH # 4
TITLE: Availability of Funds
KEY POINTS:
ECONOMY ACT IAGS
lAGs which cite the Economy Act for authority are subject to the
limits of availability established in the appropriation (e.g., Superfund,
ACC, Research, etc.) from which the funds come.
- If the funds are used for personnel, travel, or other expenses
(e.g., supplies), the funds expire when the appropriation expires or
when the project period ends, whichever comes first. This is true
even if the planned work is not complete.
- If the funds are obligated to a contract, they are available for
expenditure until the contract or the project period ends,
whichever comes first.
COOPERATION PROVISION IAGS
lAGs which cite the cooperation provisions of EPA's statutes for
authority are available until the project period ends. This includes
funds used for personnel, travel, and other expenses, as well as
funds used for contracts and grants and cooperative agreements.
5/23/94 8.7
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CINCINNATI FINANCIAL
MANAGEMENT CENTER
RECORDS OBLIGATIONS
DEOBLIGATES UNUSED
FUNDS
VIEWGRAPH # 5
TITLE: Cincinnati Financial Management Center
KEY POINTS:
The Cincinnati Financial Management Center (CFMC) is the
Servicing Financial Office for all lAGs.
Funds-Out IAGS: CFMC records obligations in the Integrated
Financial Management System (IFMS). CFMC will not obligate
funds until the other agency accepts the IAG and returns a
signed copy of the forms to GAD. Because GAD provides
copies of the signed IAG to CFMC, the IAG specialists will call at
the end of the year to enlist your aid in getting documents
returned from other agencies. If the other Agency does not
accept an IAG before the end of the Fiscal Year, the process
must be started again. Also, if the proposed IAG is using
expiring appropriations, the funds will be lost unless the IAG is
signed by both Agencies before the end of the Fiscal Year.
Funds-ln IAGS: CFMC establishes accounts and assigns
account numbers for other agencies' funds.
CFMC and GMOs work together to close out lAGs and
deobligate unused funds.
5/23/94 8.8
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PAYMENT/BILLING
PAYMENT SYSTEM
POs MUST APPROVE
PAYMENTS
BILLING SYSTEM
POs MUST PROVIDE COST
INFORMATION
VIEWGRAPH #6
TITLE: Payment/Billing
KEY POINTS:
After EPA accepts funds-in lAGs, EPA must bill the Ordering
Agency as EPA incurs costs. POs must assure that all charges to
the project under a funds-in IAG are charged to the IAG account.
POs must ensure that each funding document (e.g., travel order,
contract, assistance agreement, and personnel charge) reflects the
appropriate account number.
EPA will bill the other Agency in accordance with the terms of the
IAG, but at least quarterly.
POs must prepare a Report of Reimbursable Services Rendered
(EPA Form 2550-8) to allow EPA to bill the Ordering Agency.
When completed, the PO sends the Form to CFMC.
Payments under lAGs are made under one of the following
systems. EPA may use either system, depending upon the other
Agency's payment system.
Reimbursement:
Reimbursement is the most frequently used method of payment.
Under this method, the billing agency (i.e., Servicing Agency)
submits an itemized bill to the Cincinnati Financial Management
Center (CFMC) on a SF 1080/1081, or the On-Line Payment and
Collection system (OPAC).
5/23/94 8.9
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VIEWGRAPH #6 (Continued)
TITLE: Payment/Billing
KEY POINTS:
• SF 1080/1081 billing system: Agencies not using the OPAC billing
system use an SF 1080 or SF 1081 to request payment. (The
Department of Defense uses a SF 1080, and other Agencies use the
SF1081.) When CFMC receives a payment request, they will send
the EPA PO an IAG Invoice Approval Form (EPA Form 2550-21). The
PO must sign and return to CFMC the EPA Form 2550-21 (IAG Invoice
Approval) before CFMC will release a payment (through a Treasury
check).
• OPAC billing system: The OPAC is an on-line system maintained by
the Department of Treasury that allows agencies to obtain funds as
soon as they are needed. Treasury immediately transfers payments
under this system to the Servicing Agency. CFMC charges the bill to
the appropriate IAG and sends the PO an EPA Form 2550-21 to
approve the request before CFMC will make the payment. If there is a
problem with the bill, EPA has 90 days to charge back to the account.
Advance:
Agencies with Working Capital funds may request payment in advance.
In this case, the Servicing Agency may bill for the entire amount of the
IAG as soon as the obligation is recorded in IFMS. It must then submit
quarterly cost reports to CFMC. POs should assure they receive
copies of these reports from CFMC.
5/23/94 8.10
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EPA REQUIREMENTS
• ASSISTANCE VS ACQUISITION
• TRAVEL
• MBE/WBE
• SUPERFUND COST RECOVERY
AND AUDIT
• INDIRECT COST
VIEWGRAPH # 7
TITLE: EPA Requirements
KEY POINTS:
• When an IAG includes funds for a grant or cooperative agreement,
the PO must:
- Provide a statement that the proposed project is not for the direct
use and benefit of the Federal government and is consistent with
the requirements of the Federal Grant and Cooperative Agreement
Act.
- Ensure that if the IAG is a "funds-in" IAG, the other Federal agency
provides a similar statement.
When an IAG budget includes funds for travel, the PO must submit a
statement that the funds are not intended to augment EPA's travel
ceiling and that the travel is necessary to carry out the project.
In accordance with EPA's Appropriation Act, each "funds-out" IAG
which includes funds for extramural agreements (i.e., contracts,
grants, or cooperative agreements) must include a condition
requiring the receiving agency to follow EPA's Disadvantaged
Business Utilization plan. In the event an agency claims they will
not accept this condition, contact either the Grants Information and
Analysis Branch, Grants Administration Division, or the Office of
Small and Disadvantaged Business Utilization.
lAGs which include Superfund monies must include a condition on
record keeping and cost recovery. Also, all Superfund expenditures
by other agencies must be audited by their IAG annually.
If an IAG budget includes indirect costs, the IAG must include an
indirect cost condition.
5/23/94 8.11
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PROGRAM OFFICE
RESPONSIBILITIES
• ASSURE WORK IS CONSISTENT WITH
ERA'S MISSION
• ASSIGN PROJECT OFFICERS
• NEGOTIATE SCOPE OF WORK, FUNDING
AND BUDGET
• OBTAIN NECESSARY APPROVALS
• PREPARE FUNDING PACKAGE
• ASSURE PERFORMANCE
• REVIEW AND APPROVE PAYMENT REQUESTS
• CLOSE OUT AGREEMENTS
VIEWGRAPH#8
TITLE: Program Office Responsibilities
KEY POINTS:
• Activities under lAGs must be consistent with EPA's mission and
statutory authority. EPA cannot use an IAG to acquire authority it
does not already have.
• Each IAG should be for a distinct project with a clearly defined objective
or work product. The Program Office must assign a PO to negotiate the
work EPA and the other agency will perform. Both agency's POs should
negotiate the estimated cost the IAG. The estimate must reflect all
costs necessary to carry out the project, e.g., personnel, equipment,
extramural agreements, travel, and indirect cost.
After the scope of work is determined, the PO must prepare a Decision
Memorandum which:
- Summarizes EPA's objectives to be met through the proposed IAG
and certifies that the proposed IAG is consistent with the EPA program
office's mission.
- States the IAG is the best means for achieving the objective and, if the
Economy Act is the statutory authority for the agreement, how the IAG
will enhance government economy and efficiency.
- Assures all technical and scientific measures will be performed in
accordance with an approved Quality Assurance Plan and, if required,
include a Quality Assurance form signed by the Quality Assurance
Officer.
5/23/94 8.12
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VIEWGRAPH # 8 (Continued)
TITLE: Program Office Responsibilities
KEY POINTS:
- Includes a statement that any proposed travel funds are necessary for
the project, not intended to augment either agency's travel ceiling, and
the travel would not occur except for the other agency's project.
- Includes a statement that any funds to be used on an assistance
agreement will not be for work that is for the direct benefit or use of the
Federal government.
The Decision Memorandum must be signed by the Decision Official (the
individual in the program office delegated the responsibility for approving
the office's use of funds -- generally the Allowance Holder.)
If the IAG includes international activities, the PO must obtain the
approval of the Office of International Activities.
For funds-out lAGs, the program office must prepare a Commitment
Notice which approves funds for the IAG. GMO staff will verify
(prevalidate) the commitment in the IFMS Automated Document Control
Register (ADCR) before award.
If the IAG includes funds for a detail for an EPA employee for more than
120 days, the package must include a completed Personnel Action form
(SF 52).
The PO must prepare EPA Form 1610-1 for each IAG. (GMOs will assist
in preparing this form).
The PO must determine and provide any special conditions which the
GMO will add to the IAG, e.g., reporting.
The PO must determine the method of payment. Generally, payment is
made by reimbursement, i.e., after costs are incurred. In some cases,
however, it may be necessary to make advance payments. In such
cases, the funding package must include a justification for advance
payment. If the agreement is "funds-in" the PO should discuss payment
method with the other agency's Project Manager.
The PO must assure products to be produced under an IAG are provided
in a timely manner.
Although the relationship under an IAG is with another Federal agency,
inadequate performance should be considered in deciding whether to
undertake future cooperative efforts with that agency.
5/23/94 8.13
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GMO RESPONSIBILITIES
• PREVALIDATE COMMITMENT
• PREPARE AWARD
• SIGN IAG AND DISTRIBUTE
• MONITOR PROJECT TO
ASSURE TIMELY
COMPLETION AND CLOSEOUT
VIEWGRAPH # 9
TITLE: GMO Responsibilities
KEY POINTS:
• In reviewing funding packages, the GMO will:
- Assure that all required information is included;
- Proper authorities are cited; and
- Prevalidate the funds, if appropriate.
When corrections or changes are required, the GMO will often make
the changes after discussing them with POs.
When clearances by other offices (such as Office of International
Activities) are required, the GMO will assure that the clearances are
included.
The GMO will ensure that information on lAGs is included in the
Grants Information and Control System (GIGS). GMOs can provide
reports on lAGs in many forms. If a program wants a report, they
can contact their GMO.
The GMO staff will prepare a transmittal letter and submit the
documents to the Action Official for signature, send the IAG to the
other Agency for signature, and distribute copies (e.g., PO, Budget,
other Agencies, Cincinnati).
- In Headquarters, the Action Official is the Chief, Grants
Information and Analysis Branch, GAD.
- In the Regions, the Action Official is the Regional Administrator or
their designee.
The GMO staff maintains the official IAG file, and the PO maintains
files which document their project management activities.
When lAGs are completed, the GMO will work with the PO to assure
that the IAG is closed out in a timely manner.
5/23/94 8.14
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APPENDIX A
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APPENDIX A
FEDERAL GRANT AND COOPERATIVE
AGREEMENT ACT
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PUBLIC LAW 95-224—FEB. 3, 1978
92 STAT. 3
Public Law 95-224
95th Congress
An Act
To distinguish Federal grant and cooperative agreement relationships from Feb. 3, 1978
Federal procurement relationships, and for other purposes. [H.R. 7691]
Be it enacted by the Senate and House of Representatives of the
United States of America vn, Congress assembled, That this Act be Federal Grant
cited as *he "Federal Grant and Cooperative Agreement Act of "d Cooperative
1977" Agreement Act of
FINDINGS AND PURPOSE
SEC. 2. (a) The Congress finds that—
(1) there is a need to distinguish Federal assistance relation-
ships from Federal procurement relationships and thereby to
standardize usage and clarify the meaning of the legal instru-
ments which reflect such relationships;
(2) uncertainty as to the meaning of such terms as ''contract",
"grant", and "cooperative agreement" and the relationships they
reflect causes operational inconsistencies, confusion, inefficiency,
and waste for recipients of awards as well as for executive agen-
cies; and
(3) the Commission on Government Procurement has docu-
mented these findings and concluded that a reduction of the exist-
ing inconsistencies, confusion, inefficiency, and waste is feasible
and necessary through legislative action.
(b) The purposes of this Act are—
(1) to characterize the relationship between the Federal Gov-
ernment and contractors, State and local governments, and other
recipients in the acquisition of property and services and in the
furnishing of assistance by the Federal Government so as to pro-
mote a better understanding of Federal spending and help elimi-
nate unnecessary administrative requirements on recipients of
Federal awards;
(2) to establish Government-wide criteria for selection of appro-
priate legal instruments to achieve uniformity in the use by the
executive agencies of such instruments, a clear definition of the
relationships they reflect, and a better understanding of the
responsibilities of the parties;
(3) to promote increased discipline in the selection and use of
types of contract, grant agreement, and cooperative agreements
and to maximize competition in the award of contracts and
encourage competition, where deemed appropriate, in the award
of grants and cooperative agreements; ana
(4) to require a study of the relationship between the Federal
Government and grantees and other recipients in Federal assist-
ance programs and the feasibility of developing a comprehensive
system of guideline for the use of grant and cooperative agree-
ments, and other forms of Federal assistance in carrying out such
programs.
41 USC 501 note.
41 USC 501.
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92 STAT. 4 PUBLIC LAW 95-224—FEB. 3, 1978
DEFINITIONS
41 USC 502. SEC. 3. As used in this Act, the terra—
(1) "State government" means any of the several States of the
United States, the District of Columbia, the Commonwealth of
Puerto Rico, any territory or possession of the United States, any
agency or instrumentality of & State, and any multi-State,
regional, or interstate entity which has governmental functions;
(2) "local government" means aiiy unit of government within
a State, a county, municipality, city, town, township, local public
authority, special district, intrastate district, council of govern-
ments, sponsor group representative organization, other inter-
state government entity, or any other instrumentality of a local
government;
(3) "other recipient" means any person or recipient other than
a State or local government who is authorized to receive Federal
assistance or procurement contracts and includes any charitable
or educational institution;
(4) "executive agency" means any executive department as
defined in section 101 of title 5, United States Code, a military
department as defined in section 102 of title 5, United States Code,
an independent establishment as defined in section 104 of title 5,
United States Code (except that it shall not include the General
Accounting Office), a wholly owned Government corporation;
and
(5) "grant or cooperative agreement" does not include any
agreement under which only direct Federal cash assistance
to individuals, a subsidy, a loan, a loan guarantee, or insurance is
provided.
USE OF CONTRACTS
41 USC 503. SEC. 4. Each executive agency shall use a type of procurement con-
tract as the legal instrument reflecting a relationship between the
Federal Government and a State or local government or other
recipient—
'•>) whenever the principal purpose of the instrument is the
acquisition, by purchase, lease, or barter, of property or services
for the direct benefit or use of the Federal Government; or
(2) whenever an executive agency determines in a specific
instance that the use of a type of procurement contract is
appropriate.
USE OF GRANT AGREEMENTS
41 USC 504. SEC. 5. Each executive agency shall use a type of grant agreement as
the legal instrument reflecting a relationship between the Federal Gov-
ernment and a State or local government or other recipient whenever—
Transfer*. (i) the principal purpose of the relationship is the transfer of
money, property, services, or anything of value to the State or
local government o. other recipient in order to accomplish a pub-
lic purpose of support or stimulation authorized by Federal
statute, rather than acquisition, by purchase, lease, or barter, of
property or services for the direct benefit or use of the Federal
Government; and
(2) no substantial involvement is anticipated between the
executive agency, acting for the Federal Government, and the
State or local government or other recipient during performance
of the contemplated activity.
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PUBLIC LAW 95-224—FEB. 3, 1978
92 STAT. 5
USE OF COOPERATIVE AGREEMENTS
SEC. 6. Each executive agency shall use a type of cooperative agree- 41 USC 505.
ment as the legal instrument reflecting a relationship between the Fed-
eral Government and a State or local government or other recipient
whenever—
(1) the principal purpose of the relationship is the transfer of Transfers.
money, property, services, or anything of value to the State or
local 'government or other recipient to accomplish a public pur-
pose of support or stimulation authorized by Federal statute,
rather than acquisition, by purchase, lease, or barter, of property
or services for the direct benefit or rse of the Federal Govern-
ment; and
(2) substantial involvement is anticipated between the execu-
tive agency, acting for the Federal Government, and the State or
local government or other recipient during performance of the
contemplated activity.
AUTHORIZATIONS
agreements.
41 USC 506.
Scientific
research.
SEC. 7. (a) Notwithstanding any other provision of law, each ezecu- Contracts, grant
tive agency authorized by law to enter into contracts, grant or coopera- « cooperative
tive agreements, or similar arrangements is authorized and directed to •——"•"••
enter into and use types of contracts, grant agreements, or cooperative
agreements as required by this Act.
(b) The authority to make contracts, grants, and cooperative agree-
ments for the conduct of basic or applied scientific research at non-
profit institutions of higher education, or at nonprofit organizations
whose primary purpose is the conduct of scientific research shall
include discretionary authority, when it is deemed by the head of the
executive agency to be in furtherance of the objectives of the agency,
to vest in such institutions or organizations, without further obliga-
tion to the Government, or on such other terms and conditions as
deemed appropriate, title to equipment or other tangible personal
property purchased with such funds.
STUDY OF FEDERAL ASSISTANCE PROGRAMS
SEC. 8. The Director of the Office of Management and Budget, in 41 USC 507.
cooperation with the executive agencies, shall undertake a study to
develop a better understanding of alternative means of implementing
Federal assistance programs, and to determine the feasibility of devel-
oping a comprehensive system of guidance for Federal assistance
programs. Such study shall include a thorough consideration of the Contents.
findings and recommendations of the Commission on Government
Procurement relating to the feasibility of developing such a system.
The Director shall consult with and to the extent practicable, involve Consultation.
representatives of the executive agencies, the Congress, th General
Accounting Uiiice, and Sta-e and local governments, other recipients
and other interested members of the public. The result of the study Report to
shall be reported to the Committee on Government Operations of the congressional
House of Representatives and the Committee on Governmental Affairs comniltlee8-
of the Senate at the earliest practicable date, but m no event later than
two years after the date of enactment of this Act. The report on the
study shall include (1) detailed descriptions of the alternative means
of implementing Federal assistance programs and of the circumstances
\rhirh thp use of each aonears to be most desirable, (2) detailed
n
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92 STAT. 6
41 USC 508.
Repeal; effective
date.
41 USC 501 note.
41 USC 509.
Exec pted
transactions.
41 USC 501 note.
Expiration date.
PUBLIC LAW 95-224—FEB. 3, 1978
descriptions of the basic characteristics and an outline of such compre-
hensive system of guidance for Federal assistance programs, the devel-
opment of which may be determined feasible, and (3) recommendations
concerning arrangements to proceed with the full development of such
comprehensive system of guidance and for such administrative or
statutory changes, including changes in the provisions of sections 3
through 7 of this Act, as may be deemed appropriate on the basis of the
findings of the study.
GUIDELINES
SEC. 9. The Director of the Office of Management and Budget is
authorized to issue supplementary interpretative guidelines to promote
consistent and efficient use of contract, grants agreement, and coopera-
tive agreements as defined in this Act.
REPEALS AND SAVINGS PROVISIONS
SEC. 10. (a) The Act entitled "An Act to authorize the expenditure
of funds through grants for support of scientific research, ana for other
purposes", approved September 6, 1958 (72 Stat. 1793; 4.2 U.S.C. 1891
and 1892), is repealed, effective one year after the date of enactment of
this Act.
(b) Nothing in this Act shall be construed to render void or voidable
any existing contract, grant, cooperative agreement, or other contract,
grant, or cooperative agreement entered into up to one year after the
date of enactment of this Act.
(c) Nothing in this Act shall require the establishment of a single
relationship between the Federal Government and a State or local
government or other recipient on a jointly funded project, involving
funds from more than one program or appropriation where different
relationships would otherwise be appropriate for different components
of the project
(d) The Director of the Office of Management and Budget may
except individual transactions or programs of any executive agency
from the application of the provisions of this Act. This authority shall
expire
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APPENDIX B
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APPENDIX B
EPA ORDER 5700.1, "POLICY FOR
DISTINGUISHING BETWEEN ASSISTANCE
AND ACQUISITION"
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&EPA
Classification No.: 5700.1
Approval Date: 3/22/94
POLICY
7CR DISTINGUISHING BETWEEN
ASSISTANCE AND ACQUISITION
1. PURPOSE AND APPLICABILITY. The purpose of this policy --• t -
clarify the criteria for and to achieve consistency in i.-.e
selection and use of contracts, cooperative agreements and grar.ns
by all EPA offices and laboratories. This policy expands en ir.e
December 2, 1992 memorandum from the Assistant Administrator for
Administration and Resources Management on "When to Use Contracts
or Cooperative Agreements and Grants" and the EPA Assiscar.ee
Administration Manual, Chapter 1.
This policy does not apply to interagency agreements because
they are not considered assistance under the Federal Grants and
Cooperative Agreement Act.
Please contact the Grants Administration Division's (GAD)
Grants Policy and Procedures Branch regarding the contents.
2. BACKGROUND. Various Federal statutes authorize and/or
direct the EPA Administrator to carry out specific environmental
activities. These statutes may specify whether the activities may
be accomplished in-house by using EPA staff or by funding outs ice
parties (extramural funding). The latter includes financial
assistance (grants and cooperative agreements) and acquisition
(contracts) . Certain activities may be undertaken in conjunction
with another Federal department or agency, a State, or a local
government by Interagency or Intergovernmental Agreements (TAG
The Federal Grant and Cooperative Agreement Act of 1977 ("CAA
or Act), PL 95-224, as amended (31 U.S.C. 6301 et seq.) established
government-wide criteria for determining whether a grant or
cooperative agreement or a contract is the appropriate legal
instrument to use for an extramural funding activity. Guidance or.
implementing the Act was issued by the Office of Management .T-.-I
Budget (OMB) in 1978, (see 43 Fed. Reg. 36860 [August 18, 197°.
The Act was based on a congressional finding that exec-.."
agencies were not adequately differentiating between procui - ~
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and assistance relationships. Specifically, Congress was concerned
that agencies were misusing assistance agreements to circumvent
competition and other procurement rules, and also applying
unnecessarily burdensome contract paperwork requirements to non-
procurement transactions. To address these problems, and ensure
consistent and uniform agency practice, Congress defined in the Act
the standards for determining the appropriate use of contracts and
assistance agreements.
Under the Act, grants and cooperative agreements are both
assistance agreements and are different from contracts. The only
distinction between a grant agreement and a cooperative agreement
is the degree of federal involvement.
Under section 4 of the Act, 31 U.S.C. 6303, an agency must use
a contract if the principal purpose of an instrument is to acquire,
by purchase, lease, or barter, property or services for the direct
benefit or use of the federal government, or if the agency
otherwise determines that use of a procurement contract is
appropriate. Under sections 5 and 6 of the FGCAA, 31 U.S.C. 6304
and 6305, an agency may use an assistance agreement only if the
principal purpose of an agreement is to transfer anything of value
(e.g., money, equipment, services) to an eligible entity to
accomplish a public purpose of support or stimulation authorized by
statute. Where an agency will not be substantially involved with
the recipient during the performance of an assistance agreement, a
grant is the appropriate instrument. If substantial federal
involvement is contemplated in the assistance relationship, the
Agency must select a cooperative agreement.
Under section 10 of the Act, 31 U.S.C. 6307, OMB is authorized
to allow exceptions from the Act's requirements in individual
cases. OMB's policy is not to allow exceptions absent a clear
demonstration that compliance with the Act would result in serious
harm.
It is important to note that the FGCAA does not expand the
Agency's authority to award assistance agreements. The Agency has
no inherent authority to award assistance agreements; such
authority must be found in the Agency's statutes and does not
derive from the FGCAA. On the other hand, unless legislatively
prohibited, every agency has inherent authority to enter into
contracts as long as the procurement is related to the agency's
mission.
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3. POLICY. EPA offices and laboratories awarding extramural
funds must determine whether to award a grant or cooperative
agreement or a contract based on the principal purpose of the
relationship between the parties.
If an office or laboratory's principal purpose in undertaking
a project is to obtain a product or service for the direct benefit
or use of the Agency, or any part of the Federal government
including the legislative and judicial branches, a contract, rather
than an assistance agreement, must be used. This is the case
regardless of the benefit the project may have for the recipient
organization, other non-federal entities, or the public. Offices
and laboratories cannot satisfy the principal purpose test to allow
the use of an assistance agreement merely by developing a scope of
work describing a project as not being for EPA's direct benefit and
use. To withstand an audit, there must be substance behind the
written scope of work demonstrating that the project is, in fact,
intended to support or stimulate a recipient to accomplish a public
purpose authorized by statute.
Offices and laboratories may use a contract even where the
principal purpose is to establish an assistance relationship, where
the use of a contract is appropriate (i.e., when the office or
laboratory determines that specific public needs can be satisfied
best by using the procurement process). Offices and laboratories
should retain documentation that supports their determination that
use of a contract is appropriate. (For example, evidence that use
of a contract would be substantially more cost-effective.) Such
documentation may be part of the Decision Memorandum.
4. DEFINITIONS.
a. Approval Official. The individual having the
responsibility and delegated authority in an EPA organization for
determining whether to fund or reject an application for technical
or programmatic reasons.
b. Award Official. The individual who signs the assistance
agreement ensuring that all technical, legal, and administrative
evaluations have been made and that the proposed agreement is
awardable.
The Award Official for regionally administered programs is
either the Regional Administrator, the Assistant Regional
Administrator, or the Division Director, depending upon Delegation
of Authority and any subsequent Redelegations. The Award Official
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for grants and cooperative agreements at Headquarters is the Branch
Chief, Grants Operations Branch, Grants Administration Division,
Office of Grants and Debarment, Office of Administration and
Resources Management.
c. Decision Memorandum. An EPA office or laboratory's
memorandum to an Award Official containing the decision and
justification for funding or rejecting an assistance proposal.
This decision is signed by the Approval Official or his/her
respective designee.
d. Grants Management Offices (GMO). The Headquarters and
Regional units responsible for business management aspects
associated with the review and negotiation of applications and the
award and administration of funded projects from pre-application
through audit resolution and final close out. In the Regions the
GMOs report organizationally to the ARA; in Headquarters the GMO
reports to the Director, GAD.
e. Statutory Authority. The section of authorizing
legislation (such as Clean Water Act or Pollution Prevention Act,
etc.) specifically stating that EPA or the Administrator may or
shall make grants or provide financial assistance for the intended
purpose. (Appears as Item #19 on EPA's Assistance Agreement.)
5. IMPLEMENTATION PROCEDURES: ROLES AND RESPONSIBILITIES
a. Approval Official Responsibilities. Each EPA approval
official must determine whether a proposed relationship is one of
acquisition or assistance. In making this determination, each EPA
office and laboratory will use the criteria set forth in Section VI
of this policy. In those limited occasions where the approval
official has the responsibility of overseeing an award originating
in another office, then the approval official's responsibility is
limited to ensuring that the originating office states it has
determined an assistance relationship exists based on the criteria
set forth in this policy.
Offices and laboratories should review all contemplated
projects as soon as possible for the purpose of determining whether
the nature of the project activity is acquisition or assistance.
If it is unclear whether a project is acquisition or assistance,
the office or laboratory should request the responsible GMO/Award
Official for assistance.
(2) The Decision Memo must state that the assistance
instrument is appropriate based on the criteria outlined in this
policy.
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(3) In most instances, offices and laboratories must
allow at least 60 days lead time (Superfund awards require 90 davs^
from receipt of application by the GMO to the award date. A much
longer lead time may be needed to award a contract.
b. Grants Management Office (GMO) Responsibilities.
(1) The GMO. will review the determination of the office
or laboratory and decide whether to concur. The GMO will make this
decision in a timely manner and in conjunction with the Office of
General Counsel, Grants and Intergovernmental Division (or Regional
Counsel), if necessary.
(2) The GMO must return all completed assistance
application packages that are acquisition activities to the office
or laboratory and say why it cannot award the project as an
assistance project.
(3) The GMO will provide training and information
dissemination regarding the appropriate use of grants, cooperative
agreements and contracts to staff and project officers to help the
offices and laboratories 'determine the appropriate use of
assistance funds and to ensure high quality application packages
are produced.
c. Award Official Responsibilities.
(1) The Award Official ensures all technical, legal, and
administrative evaluations have been made and that the proposed
agreement is awardable. If a proposed agreement is awardable, the
Award Official is responsible for making the official offer to the
designated recipient by signing the award agreement.
6. DISTINGUISHING ACQUISITION AND ASSISTANCE RELATIONSHIPS.
a. Criteria for Distinguishing Between Acquisition and
Assistance. The following criteria apply to all EPA awards of
extramural funds, except where the authorizing legislation was
enacted after the FGCAA and specifically supersedes the FGCAA or
other provisions of law. In that case, the award instrument
specified in the authorizing legislation must be used. Otherwise,
the Agency must use the appropriate award instrument as required by
the FGCAA. Approval Officials and Award Officials must determine
in each instance the proper instrument to use, given the particular
circumstances of the transaction.
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The decision to use a contract or an assistance agreement must
be based solely on the principal purpose of the relationship. If
EPA's principal purpose is acquiring property 6r services from a
recipient for direct Agency for government! benefit or use, an
acquisition relationship exists requiring the use of a contract.
If EPA is funding a recipient to support or stimulate
activities that are not principally for the direct benefit or use
of the Federal Government, and the award is authorized by federal
statute, an assistance relationship exists and a financial
assistance agreement (i.e., grant or cooperative agreement) may•be
used.
Note that substantial involvement during performance is not
relevant in determining whether an acquisition or assistance
mechanism is required. It is only after determining that an
assistance agreement is appropriate that substantial involvement
becomes a factor. In other words, the need for substantial
involvement does not dictate the use of a cooperative agreement
rather than a contract. The substantial involvement test is used to
distinguish between a grant or a cooperative agreement.
b. Identifying Principal Purpose of Relationship
(1) Direct Benefit or Use - In applying the principal
purpose test, offices and laboratories must determine whether the
government is the direct beneficiary or user of the activity. If
EPA provides the specifications for the project; or is having the
project completed based on its own identified needs; or will
directly use the report or result of the project (for example, by
incorporating or relying on information developed by the project in
writing EPA guidance or standards) then, in most cases, the
principal purpose is to acquire property or services for the direct
benefit or use of EPA and thus, a contract relationship exists.
However, there may be cases where EPA expects to derive some
incidental use or benefit from funded activities. Such incidental
use or benefit does not preclude an award of assistance when the
principal purpose is public support or stimulation. For such cases,
an assistance vehicle may be still be appropriate.
Not every benefit to or use by the government is direct. Any
extramural expenditure that furthers the Agency's goals or mission
can be said to be of benefit or use to the government. But not
every expenditure produces for the government a benefit or use that
is direct, e.g. immediate, uninterrupted, or specific. If an
expenditure will produce a benefit or use that is not direct, a
contract is not required.
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(2) Support or Stimulation. "Support or stimulation",
although a relatively broad term, does not encompass every agency
extramural award. Every award could be construed to serve a public
support or stimulation function if this means that its ultimate
goal is to serve the public welfare. However, an award that is not
authorized by statute or is intended to acquire goods or services
for the direct benefit or use of the government can not be an
assistance agreement, regardless of how well it serves the public.
To find a public purpose of support or stimulation, the
office or laboratory does not have to determine that the recipient
needed the federal assistance to perform the activity; nor is it
necessary to determine that the recipient, rather than the Agency
initiated the proposed project. It is necessary to find that the
project is being performed by the recipient, for its own purposes,
which EPA is merely supporting with financial or other assistance.
(3) Non-Profit vs. Profit Organizations. Type of
organization does not drive the decision to use one instrument or
the other. A non-profit organization does not automatically
qualify for an assistance relationship. Similarly, a profit-making
organization does not automatically reflect an acquisition
relationship (although a profit-making organization may be an
assistance recipient only if the statutory grant authority so
provides). The sole determinant of the proper mechanism is
principal purpose, other 'myths' in this area lead one to believe
that research should always be funded by an assistance agreement
and that universities automatically receive cooperative agreements.
In fact, research can be funded by contract and universities can
receive grants or contracts, as well as cooperative agreements.
c. Acquisition and Assistance Examples. Examples of
activities that EPA may (per individual statutory language) fund
through assistance agreements include:
(1) State continuing environmental programs, such as
groundwater protection, pesticide enforcement, and public water
system supervision;
(2) Constructing local waste water treatment plants;
(3) State and local government cleanup of hazardous
waste sites;
(4) Environmental education projects;
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EPA ORDER 57XX XXX
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(5) Conducting surveys, studies, and research, when the
principal purpose is to stimulate or support development or
dissemination of knowledge (not primarily for use of EPA;
(6) Training for non-Federal personnel where the
recipient selects the trainees, specifies the plan for training,
and provides the trainers.
(7) Assistance to associations of State officials, as
follows:
As a general rule, an assistance agreement may not be used
to support a conference or other services, the principal purpose of
which is to provide advice, recommendations, or other information
for EPA's direct use in developing or changing guidance,
regulations, etc. Thus, for example, an office or laboratory
cannot award an assistance agreement to a trade association or
consulting firm to arrange and conduct a conference of EPA
officials and members of the regulated community if the principal
purpose is to enable EPA to obtain the views of the regulated
community on a proposed new policy or changes in an existing one.
If the office or laboratory needs help in putting on such a
conference, it should use a contract to acquire logistical support
services.
An exception to this general rule is assistance to
associations of State officials who implement EPA programs. An
assistance agreement may be used to provide funding to an
association of state officials or agencies to hold a conference
among its members and EPA officials to discuss issues in the
implementation of a Federal effort that the States implement on a
day-to-day basis under a formal delegation or as partners with EPA
in a coordinated, national effort. Although EPA does derive
benefits from such a conference and may subsequently decide to
adopt recommendations or use information provided by the State
officials at the conference, the principal purpose of the agreement
is not to acquire services for the direct benefit or use of the
Federal Government. The principal purpose is to support the
association in helping its State members participate in developing
the policies that they will carry out. State officials and agencies
are in the unique role of sharing operational responsibility with
EPA for implementation of environmental efforts. EPA may issue the
guidance and regulations, but the States are at least equal
partners in implementing them. They need, and clearly benefit
from, an opportunity to discuss the policies they will be
implementing before EPA adopts those policies. The same is also
true of Tribal governments that are also partners of EPA in
implementing EPA efforts.
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At such a conference of EPA and State officials, EPA
officials should not finally agree to adopt particular policy
positions. EPA officials may tentatively agree on positions, or
agree on draft or proposed positions, but any final decisions
should be made solely by EPA after review, consideration, and
modification by the Agency itself, e.g., by senior managers. The
need for subsequent and well documented EPA review and decision
should be made clear to conference participants. Such intervening
steps between the Agency's receipt of recommendations or
information and the Agency's adoption of final positions indicate
that EPA does not directly use the State's information.
EPA may not treat an association to which it awards
assistance as it would a contractor. Thus, an EPA office or
laboratory may not direct an association in arranging the
association's conference or in providing other services for EPA's
benefit. The conference should be run by the association, not by
EPA. The benefits of the assistance should flow primarily to the
association and its State members, not to EPA. If the association
is merely providing logistical support and other services to EPA in
arranging an EPA conference, a contract should be used. This does
not mean that EPA personnel may not be substantially involved in
the performance of a cooperative agreement, so long as the purpose
of the agreement is assistance and they do not give daily direction
to the recipient or its contractor.
Examples of activities that MUST be funded through a contract
(if not performed 'in-house' by EPA) include:
(a) Evaluation of performance of EPA efforts,
projects, or grantee activity when the evaluation is required by
or is for the direct use of the Agency;
(b) Surveys, studies, and research which gather
specific information desired by EPA for its own use or for
dissemination to the public as EPA materials;
(c) Training projects where EPA directs the
selection of the trainers or trainees, or the content of the
curriculum;
(d) Design or development of items to meet a direct
EPA need;
(e) Conferences sponsored or initiated by EPA
primarily to meet a specific EPA need or obtain information for use
by EPA;
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(f) Support the work of EPA Federal Advisory
Committee Act (FACA) Committees, as appropriate;
(g) Provide technical, analytical, and application
review services/advice for the direct benefit or use of EPA: such
as information used to set guidelines;
(h) Evaluate or improve the internal operations of
EPA;
(i) Provide support to EPA, with the statutory
exception of the Senior Environmental Employee Program;
(j) Produce specific information that will be
directly incorporated by EPA into technical, policy or regulatory
decisions;
(k) Develop computer models (i.e. software)
specifically for EPA use;
(1) Produce data for input into internal Agency
computer data bases;
(m) Help (as allowed under EPA Order 1900.2)
prepare required EPA reports to Congress;
(n) Help (as allowed under EPA Order 1900.2)
prepare EPA guidance documents or manuals;
(o) Operate EPA facilities;
(p) Organize training or other conferences
principally for federal employee benefit;
(q) Help perform policy analyses (as allowed under
EPA Order 1900.2) for EPA offices;
(r) Provide logistic or other support to EPA
employees carrying out technology transfer activities;
7. SELECTING BETWEEN A GRANT OR COOPERATIVE AGREEMENT.
After an office or laboratory determines that an assistance
agreement rather than a contract is appropriate, it must then
decide whether to use a grant or a cooperative agreement to
provide the assistance. The office or laboratory must base this
decision on the extent and nature of the Agency's involvement in
the activities to be supported under the agreement.
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a. Grant Agreements. EPA shall use a grant agreement
whenever an assistance agreement is appropriate and the office or
laboratory does not anticipate substantial involvement with the
recipient during performance of the contemplated activities.
b. Cooperative Agreements. EPA shall use a cooperative
agreement whenever an assistance agreement is appropriate and the
office or laboratory anticipates substantial involvement with the
recipient during performance of the contemplated activity.
(1) Generally, substantial Federal involvement is
anticipated where a project is expected to entail:
a Intense monitoring by EPA;
b Joint operational involvement, participation,
and/or collaboration between EPA and the recipient;
c EPA prior review or approval of project phases
or the substantive provisions of proposed contracts found within
the scope of the agreement;
d Agency involvement in the selection of key
recipient personnel; or
e EPA collaboration regarding scope of work,
organizational structure, staffing, mode of operation and other
management process (assuming the principal purpose is not to
acquire goods or services for the government, in which case a
contract would be required).
(2) Anticipated substantial involvement during
prformance does not include:
a Agency approval of recipient plans prior to
award;
b Normal overview activities such as site visits,
performance reporting, financial reporting and audit;
c Unanticipated agency involvement to correct
deficiencies in project or financial performance;
d Agency review of performance after completion.
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8. STATUTORY AUTHORITY for ASSISTANCE AGREEMENT.
A grant or cooperative agreement may be awarded only if EPA
possesses statutory authority to provide financial assistance for
the activity to be supported. If a statute authorises the award of
'grants' or 'financial assistance' it is deemed to authorize the
award of grants and cooperative agreements, whichever is consistent
with the FGCAA.
Sometimes EPA provides assistance to one party that
subsequently uses the funds for the benefit of others. EPA may use
an assistance agreement with an eligible intermediary to provide
assistance to the ultimate beneficiaries, who must also be
eligible. The FGCAA does not indicate who is to receive support or
stimulation. It does not require that the support or stimulation be
only of the immediate party to the agreement. On the other hand, if
the intermediary is not itself an eligible recipient, or if the
intermediary is effectively serving as a contractor to EPA, then
EPA should normally use a procurement contract to obtain the
services of the intermediary in assisting eligible recipients.
9. IN-KIND ASSISTANCE. In addition to transferring money to an
authorized assistance recipient, EPA offices and laboratories may
use assistance agreements to transfer anything of value; such as,
equipment or services, to a recipient. If it would be more
efficient in terms of cost or time for EPA rather than the
assistance recipient to purchase equipment or services, EPA may do
so and provide the equipment or services to the recipient under the
assistance agreement. This approach would be appropriate, for
example, where a piece of equipment necessary for a grant assisted
project can be purchased at a considerably lower price or be
delivered much earlier using an existing EPA contract. Likewise,
EPA may provide the services of an EPA contractor to an assistance
recipient in lieu of money, where appropriate.
Offices and laboratories should provide the following
documentation in their files when providing in-kind assistance:
a. a savings of cost or time is expected;
b. all charges are to the grants object class series; and
c. all other details are in accordance with the "in-kind"
grant feature as defined by EPA regulations e.g. 40 CFR parts 30 &
31 and guidance.
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10. FAILURE TO COMPLY. In certain circumstances, it may becone
apparent that an individual office, laboratory, or recipient failed
to comply with this Order by awarding an assistance agreement -nere
a contract was required.
Individuals discovering such situations are directed to
consult with representatives-from the EPA office or laboratory, the
Award Official-, a'nd the Office of General Counsel to determine all
necessary actions. It is GAD policy to allow completion of the
assistance agreement where good faith effort was made to determine
principal' purpose in accordance with the FGCAA. GAD will seek to
ensure that future funding decisions by the involved office or
laboratory are consistent with the FGCAA. It is not EPA policy to
terminate, annul, or require ratification for these awards unless
there were or will be serious irregularities, e.g. conflict of
interest.or intentional misconduct.
MAR 22
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APPENDIX A
ACQUISITION AMD ASSISTANCE CASE STUDIES
(These case studies do not depict actual EPA situations.
However, they do illustrate commonly raised circumstances
regarding acquisition and assistance.)
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CASE STUDY #1
FACTS:
1. An EPA office has recently announced a new regulatory program.
A trade association has submitted a proposal requesting EPA
financial assistance for a national conference to inform its
members about the new program and its requirements.
2. The trade association will run the conference, including
developing the agenda and selecting the speakers. Association
employees and members are among the featured speakers. EPA's
role will consist of sending a few officials to the conference
to speak, answering questions and monitoring the proceedings.
3. The proposal calls for funds to cover the travel expenses of
the non-federal speakers and others who will participate in
programs and workshops at the conference.
4. For purposes of this case study, assume that there is
statutory authority and delegated approval authority
for this award.
QUESTION A:
ANSWER A:
the
QUESTION B:
ANSWER B:
May the office use an assistance agreement to fund
this conference?
Yes. The principal purpose of the agreement is to
support the trade association in training and
educating its members, not to acquire services for
the Government's direct use or benefit. Although
EPA officials will speak at the conference and EPA
derives some benefit from explaining its program,
principal purpose of the agreement is to provide
information to the regulated parties.
May the agreement pay for travel expenses of n o n-
federal speakers and other participants in the
conference?
Yes. Participant support costs such as stipends,
subsistence allowances, travel allowances, and
registration fees for a conference, meeting, or
training are allowable under an assistance agreement
and are covered by OMB Circular A-122. However,
travel costs for Federal personnel cannot be paid
for through assistance agreements.
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CASE STUDY #1 (continued)
QUESTION C: Could this award be made to a State or local entity
covered by OMB Circular A-87 or an educational
institution covered by circular A-21?
ANSWER C: Yes, if there is no statutory prohibition to do so.
QUESTION D: Can this State recipient pay travel and other
conference costs for state and other non-federal
participants at this conference?
ANSWER D: Yes. A-87 and A-21 do not''directly address
"participant costs" as does A-122; they only address
"selected items" of cost. However, both Circular A-
87 and A-21 provide that if an item of cost is not
addressed, a determination of allowability should be
based on the treatment of similar items. Moreover,
EPA believes it would not be appropriate to treat
State and local government or educational
institutions more restrictively than non-profit
organizations in this regard. Therefore, consistent
with Circular A-122, as long as not prohibited by
the authorizing statute (e.g. Clean Water Act), a
state or local recipient may pay travel and other
allowable conference costs for participants at an
EPA funded conference.
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CASE STUDY #2
FACTS:
1. An EPA office has an assistance effort open to non-profit
organizations. The EPA office would like a non-profit to
provide technical skills to generate data and prepare a report
for EPA's use concerning the effort.
2. The work being conducted falls within the statutory authority
of the effort.
3. For purposes of this case study, assume that there is
statutory authority and delegated approval authority for this
award.
QUESTIONS Can EPA fund this non-profit organization with an
assistance agreement?
ANSWER: No. Even though the non-profit organization is eligible
for funding, the principal purpose seems to be to acquire
services for the direct benefit or use of EPA.
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CASE STUDY #3
FACTS:
1. An EPA office wants to fund a training session for State
personnel involved in permit writing and issuance. The office
intends to use a cooperative agreement with a non-profit
organization knowledgeable in the subject and expert in
training.
2. The non-profit organization will run the training session,
consulting with EPA on the agenda and the training methods,
but not taking direction and supervision from an EPA office.
3. The audience is expected to consist primarily of personnel
from State agencies. The course is designed for State
personnel and a sufficient number of State (or non-federal)
personnel will attend to make holding the training session for
those personnel financially feasible and practicable.
However, 15 percent of the audience will be EPA Regional
personnel.
QUESTION: May the EPA office use a cooperative agreement to fund
the training session?
ANSWER: Yes. It is reasonable to determine that the principal
purpose is to train non-federal personnel and this
training session would be feasible even if no federal
participants attended. Conversely, if the training
session would not be held but for the attendance of the
federal personnel, the principal purpose test would not
be met and a contract would be required because the
training would not be feasible and practicable.
Here, the principal purpose of the agreement is to train
non-federal personnel. That purpose is not changed by
the attendance of some federal personnel. Of course, the
travel and associated costs of the federal personnel
attending the training cannot be paid for by the award.
Principal purpose should not be determined based simply
on a count of the participants, i.e., the principal
purpose is not necessarily to train non-federal personnel
any time at least 51 percent of the audience is non-
federal.
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CASE STUDY #4
FACTS:
1. An EPA HQ office wants to award a cooperative agreement to a
non-profit organization to hold a conference. The proposal
for the conference describes it as an "EPA conference". The
agreement provides that EPA will develop the agenda, select
the speakers, determine participant costs, and set
registration fees.
2. The non-profit organization will help develop the agenda and
will provide the programs and conference materials. The non-
profit organization will plan and handle conference
registration and hotel reservations, arrange the meeting
space, and prepare and distribute publicity materials.
3. The non-profit will provide a five percent match and will use
information obtained at the conference for educational
purposes.
4. The speakers and the audience will be from federal, State, and
local governments, plus private nonprofit and profit-making
firms.
5. For purposes of this case study, assume that there is
statutory authority and delegated approval authority for this
award.
QUESTION: May the EPA office use a cooperative agreement to fund
this conference?
ANSWER: No. The principal purpose apparently is to acquire the
non-profit organization's services to enable the EPA
office to hold an EPA conference based on the facts that
EPA will develop the agenda, select the speakers, etc.
Accordingly, a contract is required. Although the non-
profit organization will perform numerous tasks, they are
essentially ministerial duties and logistical support.
The non-profit will assist EPA in accomplishing Agency
objectives. The non-profit's use of information from the
conference for educational purposes does not appear to be
the principal purpose of the agreement. The provision of
a match may suggest an assistance relationship, but in
this case it does not outweigh the evidence of a
procurement relationship.
19
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EPA ORDER 57XX XXX
XXXXXX
CASE STUDY #5
FACTS:
1. EPA wants to award a cooperative agreement for research on the
impacts of a treatment standard that the Agency is
considering. Before issuing a regulation proposing use of the
standard, EPA believes it needs more information to explain
the proposal adequately for public comment.
2. The laboratory does not have clearly defined specifications
for the research to be performed and will need to be
substantially and frequently involved in technical decisions
in the research.
3. For purposes of this case study, assume that there is
statutory authority and delegated approval authority for this
award.
QUESTION: May EPA use a cooperative agreement to fund this
research?
ANSWER: No. Although the research may benefit others,
EPA's principal purpose in funding the research is to
obtain information EPA needs to draft a proposed
regulation. Therefore, a contract is required.
20
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EPA ORDER 57XX XXX
XXXXXX
CASE STUDY #6
FACTS:
1. An EPA laboratory is planning to issue a request for
applications from universities and others for a cooperative
research effort and has written a clear and precise
description of the research and how it is to be carried out.
2. All sampling activities will be carried out according to
established protocols, which describe in detail how the
samples are to be taken and what chemicals are to be tested
for in the samples. Recipient personnel will have to be
trained in the use of the protocol by Laboratory staff.
3. Analysis of the resulting data (and any changes to the
sampling protocols) will be carried out by EPA scientists.
However, the recipient may propose additional uses for the
data.
4. The recipient will be directed to "complete the processing of
the ... analytical chemistry samples and transmit the
information to EPA in computerized format".
QUESTION: A.
ANSWER: A.
QUESTION B.
ANSWER B.
Is a cooperative agreement the appropriate award
instrument for this activity?
No. The activity described above is not assistance.
From the information provided, the Laboratory's
principal purpose is to acquire sampling and
analyses support for the direct benefit and use of
EPA. Since the sampling and analysis protocol is
already developed, there is no evidence that the
award would stimulate or support the recipient in
carrying out a public purpose.
What is the appropriate award instrument for this
activity?
The appropriate award instrument for this activity
is a contract. The principal purpose of the activity
described above fulfills an Agency need and further
provides the laboratory with sampling and analytical
services for the direct benefit and use of EPA.
21
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EPA ORDER 57XX XXX
XXXXXX
CASE STUDY #7
FACTS:
1. An EPA laboratory has submitted to Headquarters an assistance
package to conduct cooperative research regarding wood burning
stoves.
2. The recipient will monitor emissions from the stove flues,
analyze the data, and submit periodic reports to the EPA
Project Officer. For emission levels detected outside of
acceptable variances, the recipient will work jointly with EPA
to modify the protocol and test the changes.
3. Bench and pilot studies plus the protocol have already been
published. This research is an opportunity to prove the
protocol in the field and will have a long-term, national
impact on air quality, as the technology finds its ways into
the manufacturing sector.
4. For purposes of this case study, assume that there is
statutory authority and delegated approval authority for this
award.
QUESTION: Is the planned activity described above an appropriate
use of a cooperative agreement?
ANSWER: Yes. Although EPA will receive some benefit from the
field research, the principal purpose of the above
mentioned activity fulfills a public purpose of
stimulation and support. This work is not merely a
sampling and data collection activity. Even if the
protocol survives the field tests intact, the principal
purpose of this activity stimulates and supports research
regarding wood burning stoves and satisfies a public
purpose. This activity meets the criteria for selecting
assistance as the appropriate award instrument. Further,
the statement of work indicates joint operational
collaboration and meets the criteria for"substantial
involvement" by EPA and demonstrates the appropriate use
of a cooperative agreement in this instance.
22
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APPENDIX C
-------
APPENDIX C
EPA INVOLVEMENT IN GRANTEE
PERSONNEL AND CONTRACTOR SELECTION
UNDER GRANTS AND COOPERATIVE
AGREEMENTS
-------
UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
y
24 1992
MEMORANDUM
SUBJECT:
FROM:
EPA Involvement in Grantee Personnel and Contractor
Grant^ and Cooperative Agreements
TO:
Sallyanne ifarper,'Acting Deputy Assistant Administrator
for Finance/ and Acquisition
[£4^Wwt/V_
H. "Skinner, Deputy Assistant Administrator
Office of Research and Development
ORD Office Directors
Laboratory Directors
The Office of Research and Development is currently shifting
some of its extramural resources from contract to assistance
instruments. Although the Inspector General and Congress have
focused in recent months on inappropriate direction and control
of contractor employees, the Agency must be aware of similar
prohibitions in dealing with assistance recipients.
Under an assistance agreement, EPA transfers money,
property, services or anything else of value to support or
stimulate an activity to accomplish a public purpose rather than
to acquire property or services for the direct benefit of EPA.
This memorandum reaffirms the regulatory requirements regarding
relationships between EPA employees and assistance recipients.
EPA's Code of Conduct states that EPA employees must not use
their Government positions to "coerce, or appear to coerce,
anyone to provide any financial benefit to themselves or others"
(40 CFR 3.103(d)). The Code also states that EPA employees "must
not take any action, whether specifically prohibited or not,
which would result in or create the reasonable appearance of ...
giving preferential treatment to any organization or person" (40
CFR 3.103(d)(2)). Additionally, our regulations for procurement
under assistance state that "the recipient shall conduct all
procurement transactions in a manner that provides maximum open
and free competition" (40 CFR 33.230(a)). These regulations
prohibit EPA staff from directing whom assistance recipients
should hire or whom they should contract with under a grant or
cooperative agreement.
-------
-2-
While EPA has the responsibility to manage grants and
cooperative agreements, EPA employees must make certain that they
do not become involved in certain areas of personnel and
recipient procurement. This memorandum sets forth when EPA
employees may become involved in personnel and procurement
actions of an assistance recipient, and when they may not, based
on existing regulations.
o EPA employees may not:
o Consistent with the EPA Code of Conduct, take any action
under a grant or cooperative agreement that would be a
conflict of interest or result in an appearance of a
conflict of interest.
o Direct the hiring, firing, promoting, disciplining, or
rewarding of recipient personnel or contractors under
grants or cooperative agreements. (In the Senior
Environmental Employment Program, EPA employees nay refer
eligible senior citizens to recipients, and select persons
to be enrolled by recipients.)
o Direct a recipient to award a contract to a specific
individual or firm.
o Participate in the negotiation or award of a contract
under a grant or cooperative agreement.
o EPA employees may:
o Approve the key personnel of the grantee organization and
the project director or principal investigator.
o Review and comment on a grantee's procurement process or a
particular procurement action.
o Participate in review panels to make recommendations on
qualified offers and acceptable proposals based on
published evaluation criteria.
o Upon request by a recipient organization, EPA employees
may provide a reference for individuals who are employed
by EPA contractors and who are being considered for
employment by the recipient institution to work on EPA
matters. In doing so, however, EPA employees should take
great care to avoid even the appearance of undue influence
in hiring decisions, especially EPA officials who have a
role in selecting the assistance recipient or in defining
the scope and amount of the assistance received.
-------
-3-
In summary, it is inappropriate for Agency staff to direct
or require the use of particular persons or firms by assistance
recipients in the performance of a grant or cooperative
agreement.
Should you have any questions on this memorandum, please
contract Bruce Feldman in the Grants Administration Division on
(202) 260-5268.
cc: David O'Connor Gary Katz
Harvey Pippen Clarence Mahan
-------
APPENDIX D
-------
APPENDIX D
40 CFR PART 30, "GENERAL REGULATION
FOR ASSISTANCE AGREEMENTS FOR
OTHER THAN STATE AND LOCAL
GOVERNMENTS"
-------
Environment*)! Protection Agency Pt. 30
SUBCHAPTER B—GRANTS AND OTHER FEDERAL ASSISTANCE
PART 30—GENERAL REGULATION
FOR ASSISTANCE PROGRAMS FOR
OTHER THAN STATE AND LOCAL
GOVERNMENTS
Subpart A—What is the Purpose and Scop* of
this Regulation?
Sec.
30.100 What is the purpose of this regula-
tion?
30.101 What is the scope of this regula-
tion?
30.102 What laws authorize EPA to issue
this regulation?
Subpart ft—What Definitions Apply to this
Regulation?
30.200, What definitions apply to this regu-
lation?
Subpart C—How do I Apply for and Receive
Assistance?
30.300 What activities does EPA fund?
30.301 To whom does EPA award assist-
ance?
30.302 How do I apply for assistance?
30.303 What steps must I take when filing
a standard application?
30.304 Is the information I submit to EPA
confidential?
30.305 How do I find out if EPA approved
or disapproved my application?
30.306 How long will I have to complete my
project?
30.307 How much must I contribute to the
funding of my project?
30.308 When may I begin incurring costs?
30.309 What is the effect of accepting an
assistance agreement?
Subpart D—How does EPA Pay Me?
30.400 How does EPA make payments?
30.405 Can I assign my payment to anyone
else?
30.410 How does EPA determine allowable
costs?
30.412 How are costs categorized?
Subpart E—How do I Manage My Award?
30.500 What records must I maintain?
30.501 How long must I keep these
records?
30.502 To whom must my contractor and I
show these records?
Sec.
30.503 What type of quality assurance
practices am I required to have?
30.505 What reports must I submit?
30.510 What type of financial management
system must I maintain?
30.515 What restrictions on signs, surveys.
and questionnaires must I observe?
30.518 What are the procedures for pub-
lishing scientific, informational, and
educational documents?
30.520 When may I use my own employees
("force account")?
30.525 How should I treat program
income?
30.526 How do I treat Interest earned on
EPA funds?
30.530 May I purchase personal property
using EPA assistance funds?
30.531 What property management stand-
ards must I follow for nonexpendable
personal property purchased with an
EPA award?
30.532 How do I dispose of personal prop-
erty?
30.535 May I purchase real property with
EPA awarded funds?
30.536 How do I manage Federally-owned
property?
30.537 Are contractors required to comply
with EPA property policies?
30.538 May I use General Services Admin-
istration (GSA) supplies and services?
30.540 Who will audit my project?
30.541 What are my audit responsibilities?
Subpart F—What Other Federal Requirements
Must I Comply With?
30.600 What Federal laws and policies
affect my award?
30.601 Are there restrictions on the use of
assistance funds for advocacy purposes?
30.603 What additional Federal laws apply
to EPA assisted construction projects?
30.610 What are my responsibilities for
preventing and detecting fraud and
other corrupt practices?
30.611 Can I hire a person or agency to so-
licit EPA assistance for me?
30.612 May an EPA employee act as my
representative?
30.613 What is EPA's policy on conflict of
interest?
30.615 May I employ a former EPA em-
ployee and still receive assistance?
Subpart O—Can an Assistance Agreement be
Changed?
30.700 What changes to my assistance
agreement require a formal amendment?
325
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§30.100
40 CFR Ch. I (7-1-91 Edition)
Sec.
30.705 What changes can I make to my as-
sistance agreement without a formal
amendment?
30?710 Can I terminate a part or all of my
assistance agreement?
Subpart H—Hew do I Clot* out my Project?
30.800 What records and reports must I
keep after I complete my project?
30.802 Under what conditions will I owe
money to EPA?
Subpart I—What Measures may EPA Take far
Non-compliance?
30.900 What measures may EPA take for
non-compliance?
30.901 What are the consequences of a
stop-work order?
30.902 What are the consequences of with-
holding payments?
30.903 What are the consequences of ter-
mination for cause?
30.904 What are the consequences of an-
nulment?
30.905 May I request a review of a termina-
tion, or annulment?
30.906 What are the consequences of sus-
pension or debarment?
Subpart J—Can I got an Exception
('•Deviation") From Those Regulations?
30.1001 Will EPA approve any exceptions
to these regulations?
30.1002 Who may request a deviation?
30.1003 What information must I include
In a deviation request?
30.1004 Who approves or disapproves a de-
viation request?
30.1005 May I request a review of , devi-
ation decision?
Subpart K—What Policies Apply to Patents,
Data, and Copyrights?
30.1100 What assistance agreements are
subject to EPA patent rules?
30.1101 What Federal patent laws or poli-
cies govern my assistance agreement?
30.1102 What are my invention rights and
my reporting requirements if my award
is other than an award under section
6914 of RCRA?
30.1103 What are my invention rights and
obligations if I am a profitmaking firm
with an award under section 6914 of
RCRA?
30.1104 Can I get a waiver from section
6981(0 of RCRA?
30.1106 Do the patent rules apply to suba-
greements?
30.1108 Does EPA require any type of li-
censing of background patents that I
own?
Sec.
30.1112 Are there any other patent clauses
or conditions that apply to my award?
30.1130 What rights In data and copyrights
does EPA acquire?
Subpart L—How are Disputes Between EPA
Officials and me Resolved?
30.120C What happens if an EPA official
and I disagree about an assistance agree-
ment requirement?
30.1205 If 1 file a request for review, with
whom must I file?
30.1210 What must I include in my request
for review or reconsideration?
30.1215 What are my rights after I file a
request for review or reconsideration?
30 1220 If the Assistant Administrator con-
firms the final decision of the Head-
quarters disputes decision official, may I
seek further administrative review?
30.1225 If the Regional Administrator con-
firms the final decision of the Regional
disputes decision official, may I seek fur-
ther administrative review at EPA Head-
quarters?
30.1230 Will I be charged interest if I owe
money to EPA?
30.1235 Are there any EPA decisions which
may not be reviewed under this subpart?
APPENDICES TO PART 30
APPENDIX A—EPA PROGRAMS
APPENDIX B—PATENTS AND COPYRIGHTS
CLAUSES
APPENDIX C—RIGHTS IN DATA AND COPY-
RIGHTS
APPENDIX D—PART 30 REPORTING REQUIRE-
MENTS
APPENDIX E—PART 30 AUDIT REQUIREMENTS
FOR STATE AND LOCAL GOVERNMENT RE-
CIPIENTS
AUTHORITY- 33 U.S.C. 1251 et seq.; 42
U.S.C. 7401 et seq., 42 U.S.C. 6901 et seq.; 42
U.S.C. 300f et seq.; 1 U.S.C. 136 et seq.; 15
U.S.C. 2601 et seq.; 42 U.S.C. 9601 et seq.
SOURCE: 48 FR 45062. Sept. 30. 1983.
unless otherwise noted.
Subpart A—What is the Purpose and
Scope of this Regulation?
§30.100 What is the purpose of this regu-
lation?
(a) The U.S. Environmental Protec-
tion Agency (EPA) is responsible for
protecting and enhancing the quality
of the environment. To achieve these
objectives, EPA may award assistance
in the form of grants, cooperative
agreements, or fellowships to support:
326
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Environmental Protection Agency
§30.200
(1) State and local pollution control
programs; (2) research, demonstration,
or training projects; and (3) other
projects that advance EPA's mission.
This regulation tells how to apply for
and manage an EPA project, describes
EPA involvement in the process, and
identifies recipients' responsibilities.
Other EPA assistance regulations sup-
plement these. They are found in 40
CFR part 32 (Debarment), part 33
(Procurement Under Assistance Agree-
ments), part 35 (State and Local As-
sistance), part 40 (Research and Dem-
onstration), part 45 Cn-'aining) and
part 46 (Fellowships).
(c) This regulation incorporates the
requirements of Office of Manage-
ment and Budget (OMB) Circulars
and EPA Orders.
(d) Recipients must provide the re-
porting information required in this
part to be eligible for EPA assistance
awards.
NOTE: The OMB clearances required by
the Paperwork Reduction Act are identified
in Appendix D to this part.
§ 30.101 What is the scope of this regula-
tion?
This regulation covers financial as-
sistance awards made as grants or co-
operative agreements under require-
ments of the Federal Grant and Coop-
erative Agreement Act (Pub. L. 95-
224). It does not cover direct EPA con-
tracts under which EPA acquires prop-
erty or services for its use.
§ 30.102 What laws authorize EPA to issue
this regulation?
Reorganization Plan Number 3 of
1970 and the following statutes au-
thorize the Administrator of EPA to
issue this regulation.
(a) The Clean Water Act. as amend-
ed (33 U.S.C. 1251 et seq.Y,
(b) The Clean Air Act, as amended
(42U.S.C. 1401 et seq.);
(c) The Solid Waste Disposal Act, as
amended (42 U.S.C. 6901 et seq.);
(d) The Safe Drinking Water Act, as
amended (42 U.S.C. 300f et seq.Y.
(e) The Federal Insecticide, Fungi-
cide, and Rodenticide Act. as amended
(7U.S.C. 136 et seq.);
(f) The Toxic Substances Control
Act (15 U.S.C. 2601 et seq.Y, and
(g) The Comprehensive Environmen-
tal Response, Compensation, and Li-
ability Act of 1980 (42 U.S.C. 9601 et
seq.).
[48 FR 45062. Sept. 30, 1983; 49 FR 38944.
Oct. 2. 1984]
Subpart B—What Definitions Apply
to this Regulation?
§30.200 What definitions apply to this
regulation?
Allowable costs. Those project costs
that are: eligible, reasonable, neces-
sary, and allocable to the project; per-
mitted by the appropriate Federal cost
principles, and approved by EPA in
the assistance agreement.
Applicant Any entity that files an
application or unsolicited proposal for
EPA financial assistance under this
subchapter.
Assistance agreement The legal in-
strument EPA uses to transfer money,
property, services, or anything of
value to a recipient to accomplish a
public purpose. It is either a grant or a
cooperative agreement and will speci-
fy: budget and project periods; the
Federal share of eligible project costs;
a description of the work to be accom-
plished; and any special conditions.
A ward official The EPA official
with the authority to execute assist-
ance agreements and to take other ac-
tions authorized by this subchapter
and by EPA Orders.
Budget period. The length of time
EPA specifies in an assistance agree-
ment during which the recipient may
expend or obligate Federal fu- s.
Consolidated assistance. .-. assist-
ance agreement awarded under more
than one EPA program authority or
funded together with one or more
other Federal agencies. Applicants for
consolidated assistance submit only
one application.
Continuation award. An assistance
agreement after the initial award, for
a project which has more than one
budget period in its approved project
period, or annual awards, after the
first award, to State, Interstate, or
local agencies for continuing environ-
mental programs (see § 30.306).
Contractor. Any party to whom a re-
cipient awards a subagreement.
327
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§30.200
40 CFR Ch. I (7-1-91 Edition)
Cooperative agreement An assist-
ance agreement in which substantial
EPA involvement is anticipated during
the performance of the project (does
ribt include fellowships).
Cost sharing. The portion of allow-
able project costs that a recipient con-
tributes toward completing its project
(i.e., non-Federal share, matching
share).
Environmentally related measure-
ments. Any data collection activity or
investigation involving the assessment
of cheriical, physical, or biological fac-
tors in the environment which affect
human health or the quality of life.
The following are examples of envi-
ronmentally related measurements: (a)
A determination of pollutant concen-
trations from sources or in the ambi-
ent environment, including studies of
pollutant transport and fate; (b) a de-
termination of the effects of pollut-
ants on human health and on the en-
vironment; (c) a determination of the
risk/benefit of pollutants in the envir-
oment; (d) a determination of the
quality of environmental data used in
economic studies; and (e) a determina-
tion of the environmental impact of
cultural and natural processes.
Expendable personal property. All
tangible personal property other than
nonexpendable personal property.
Force account work. The use of the
recipient's own employees or equip-
ment for construction, construe ion-re-
lated activities (including A Lid E
services), or for repair or improvement
to a facility.
Foreign awards. An EFA award of
assistance when all or part of the
project is performed in a foreign coun-
try by (a) a U.S. recipient, (b) a for-
eign recipient, or (c) an international
organization.
Formal amendment A written modi-
fication of an assistance agreement
signed by both the authorized repre-
sentative of the recipient and the
award official.
Grant agreement An assistance
agreement that does not substantially
involve EPA in the project and where
the recipient has the authority and ca-
pability to complete all elements of
the program (does not include fellow-
ships).
In-kind contribution. The value of a
non-cash contribution to meet a recipi-
ent's cost sharing requirements. An in-
kind contribution may consist of
charges for real property and equip-
ment or the value of goods and serv-
ices directly benefiting the EPA
funded project.
Nonexpendable personal property.
Personal property with a useful life of
at least two years and an acquisition
cost of $500 or more.
Personal property. Property other
than real property. It may be tangible
(having physical existence), such as
equipment and supplies, or intangible
(having no physical existence), such as
patents, inventions, and copyrights.
Program income. Gross income the
recipient earns during its project
period from charges for the project.
This may include income from service
fees, sale of commodities, trade-in al-
lowances, or usage or rental fees. Fees
from royalties are program income
only if the assistance agreement so
states. Revenue generated under the
governing powers of a State or local
government which could have been
generated without an award is not
considered program income. Such rev-
enues include fines or penalties levied
under judicial or penal power and used
as a means to enforce laws. (Revenue
from wastewater treatment construc-
tion grant projects under Title II of
the Clean Water Act, as amended, is
not program income. It must be used
for operation and maintenance costs
of the recipient's wastewater facili-
ties.)
Project. The activities or tasks EPA
identifies in the assistance agreement.
Project costs. All costs the recipient
incurs in carrying out the project.
EPA considers all allowable project
costs to include the Federal share.
Project officer. The EPA official des-
ignated in the assistance agreement as
EPA's program contact with the recip-
ient. Project officers are responsible
for monitoring the project.
Project period. The length of time
EPA specifies in the assistance agree-
ment for completion of all project
work. It may be composed of more
than one budget period.
Quality assurance narrative state-
ment. A description of how precision,
328
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Environmental Protection Agency
§30.301
accuracy, representativeness, com-
pleteness, and compatibility will be as-
sessed, and which is sufficiently de-
tailed to allow an unambiguous deter-
mination of the quality assurance
practices to be followed throughout a
research project.
Quality assurance program plan. A
formal document which describes an
orderly assembly of management poli-
cies, objectives, principles, organiza-
tional responsibilities, and procedures
by which an agency or laboratory
specifies how It intends to:
(a) Produce data of documented
quality, and
(b) Provide for the preparation of
quality assurance project plans and
standard operating procedures.
Quality assurance project plan. An
organization's written procedures
which delineate how it produces qual-
ity data for a specific project or meas-
urement method.
Real property. Land, including land
improvements, and structures and ap-
purtenances, excluding movable ma-
chinery and equipment.
Recipient. Any entity which has
been awarded and accepted an EPA as-
sistance agreement.
Standard operating procedure. A
document which describes in detail an
operation, analysis, or action which is
commonly accepted as the preferred
method for performing certain routine
or repetitive tasks.
Subagreement. A written agreement
between an EPA recipient and another
party (other than another public
agency) and any lower tier agreement
for services, supplies, or construction
necessary to complete the project. Su-
bagreements include contracts and
subcontracts for personal and profes-
sional services, agreements with con-
sultants, and purchase orders.
Violating facility. Any facility that
is owned, leased, or supervised by an
applicant, recipient, contractor, or sub-
contractor that EPA lists under 40
CFR part 15 as not in compliance with
Federal. State, or local requirements
under the Clean Air Act or Clean
Water Act. A facility includes any
building, plant, installation, structure,
mine, vessel, or other floating craft.
Unsolicited proposal. An informal
written offer to perform EPA funded
work for which EPA did not publish a
solicitation.
[48 PR 45062. Sept. 30. 1983. aa amended at
49 PR 38944. Oct. 2. 19841
Subpart C—How do I Apply for and
Receive Assistance?
§ 30.300 What activities does EPA fund?
EPA awards assistance to support
various activities that protect the envi-
ronment and reduce or control pollu-
tion. EPA groups these activities into
the following types of assistance pro-
grams:
(a) State and local pollution control;
(b) Construction of wastewater
treatment works;
(c) Research;
(d) Demonstration:
(e) Training;
(f) Fellowships;
(g) Special investigations, surveys or
studies; and
(h) Consolidated assistance.
8 30.301 To whom does EPA award assist-
ance?
(a) EPA awards assistance only to
applicants which are eligible under ap-
plicable statutes and regulations and
which have the ability to meet the fol-
lowing criteria:
(1) Financial resources, technical
qualifications, experience, organiza-
tion, and facilities adequate to carry
out the project, or a demonstrated
ability to obtain these;
(2) Resources to meet the project
completion schedule contained in the
assistance agreement;
(3) A satisfactory performance
record for completion of projects and
subagreements;
(4) Accounting and auditing proce-
dures adequate to control property,
funds, and assets, as required in sub-
part E of this part;
(5) Procurement standards that
comply with part 33 of this subchap-
ter;
(6) Property management systems
for acquiring, maintaining, safeguard-
ing, and disposing of property, as re-
quired In subpart E of this part; and
(7) Demonstrated compliance or will-
ingness to comply with the civil rights,
equal employment opportunity, labor
329
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§30.902
law, and other statutory requirements
under subpart F of this part.
(b) EPA considers your submission
of an assistance application as your as-
sftrance that you can and will meet
these standards. EPA may conduct a
preaward audit or other review to de-
termine your capabilities.
(c) EPA must notify you in writing if
it finds you unable to meet these
standards. The written notice will
state the reasons for the finding. You
may appeal EPA's findings under the
disputes procedures in subpart L.
(d) Individuals, agencies, or organi-
zations voluntarily excluded, suspend-
ed, or debarred under 40 CFR part 32
are ineligible to receive assistance.
§ 30.302 How do I apply for assistance?
(a) You must submit a standard ap-
plication to apply for EPA assistance.
(b) Before you file an application to
perform unsolicited work, you may
submit an unsolicited proposal. EPA
will apprise you of your proposal's po-
tential for funding.
(c) You can get program information
and an application kit with instruc-
tions from the EPA grants office
which is responsible for administering
that program. Regional EPA grants of-
fices provide and review applications
and award assistance for State and
local pollution control projects. State
water pollution control agencies pro-
vide and review applications for grants
for the construction of waste water
treatment facilities. EPA Headquar-
ters provides and reviews applications
for and awards research, demonstra-
tion, fellowships, training, special in-
vestigations, surveys, studies, and most
training assistance.
(d)(l) For assistance agreements
awarded for Fiscal Year 1984. you
must develop and implement a quality
assurance program acceptable to the
award official if your proposal involves
any environmental related measure-
ments or data generation. Except as
noted in paragraphs (d) (2) and (3) of
this section, your application for fi-
nancial assistance must include a qual-
ity assurance plan which meets the re-
quirements in § 30.503. If you already
have an EPA approved quality assur-
ance plan, you need only reference
that plan in your application, provided
40 CFR Ch. I (7-1-91 Edition)
the plan covers the project in your ap-
plication.
[48 FR 45062, Sept. 30, 1983; 49 FR 38944.
Oct. 2. 1984. as amended at 53 FR 8076.
Mar. 11, 1988]
§30.303 What steps must I take when
filing a standard application?
(a) Before you file an application,
you must complete the forms accord-
ing to the instructions. At least one
copy of the completed application
must have an original signature of the
person authorized to obligate you or
;*our organization to the terms and
conditions of EPA's regulations and
assistance agreement.
(b) You must:
(1) Comply with your State's inter-
governmental review process, if it es-
tablished one 'inder Executive Order
12372. See 40 CFR part 29 (48 FR
29288. June 24, 1983).
(2) Comply with the areawide review
requirements of section 204 of the
Demonstration Cities and Metropoli-
tan Development Act of 1966. as
amended (42 U.S.C. 3334) if your
project will be located in a metropoli-
tan area. EPA programs that are sub-
ject to areawide review are listed in 48
FR 29304. June 24, 1983, and marked
with an asterisk (*).
§ 30.304 Is the information I submit to
EPA confidential?
(a) Generally, the information is not
confidential. When EPA receives your
assistance application or unsolicited
proposal the information you submit
becomes part of the Agency's records.
As such, it is subject to EPA's disclo-
sure of information policy (40 CFR
part 2) which is based on the provi-
sions of the Freedom of Information
Act (5 U.S.C. 552) and on the provision
for patents and rights in data and
copyrights under subpart K of this
part.
(b) If you submit data, documents,
or parts of documents which you con-
sider to be confidential, you should
clearly identify them with the words
"trade secret," "proprietary," or "busi-
ness confidential." For further in-
structions on assertion of confidential-
ity claims, see 40 CFR part 2, subpart
B.
330
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Environmental Protection Agency
§30.305 How do I find out if EPA ap-
proved or disapproved my application?
(a) If EPA approves your applica-
tion, the award official will prepare
and sign an assistance agreement and
send it to you for signature. Your au-
thorized representative must either
sign and return the agreement to EPA
within three calendar weeks after you
receive it or request EPA to extend
the time for acceptance. If you do not
sign or request an extension within
the three week period, the assistance
agreement is null and void.
(b) If EPA disapproves your applica-
tion, it will promptly notify you in
writing. You may appeal EPA's disap-
proval under subpart L.
(c) Sometimes, EPA will defer your
application. You will be notified in
writing of this decision.
§ 30.306 How long will I have to complete
my project?
(a) Your assistance agreement will
state the length of your approved
budget period(s) and project period.
Subject to statutory provisions, your
approved project period may include
more than one budget period. In this
case, you must submit a continuation
application to EPA to request funding
for each budget period after the initial
one. EPA makes continuation awards
subject to availability of funds and
Agency priorities. (Assistance awards
under 40 CFR part 35, subpart A, do
not have project periods, but recipi-
ents of such awards may receive con-
tinuation awards.)
(b) The continuation application
must include:
(DA detailed progress report for the
current budget period;
(2) A preliminary financial state-
ment for the current budget period
that includes estimates of the amount
you expect to spend by the end of the
current budget period and the amount
of any uncommitted funds which you
propose to carry over beyond the term
of the current budget period;
(3) A budget for the new budget
period;
(4) A detailed work plan revised to
account for your actual accomplish-
ments during the current budget
period;
§30.307
(5) An Invention report, if applica-
ble;
(6) Any other reports that the assist-
ance agreement may require.
(c) If approved by the award official.
you may carry over unexpended prior
year funds: (1) In lieu of new funds;
(2) to complete work started in prior
years; or (3) to supplement the new
award. You must meet all program
and cost sharing requirements in each
budget period to carry over funds.
(d) If EPA executes a continuation
agreement, EPA will reimburse you
for allowable costs you incur between
the end of a budget period and date of
award for the next budget period pro-
vided you submit a continuation appli-
cation before the expiration of the
prior budget period.
[48 PR 45062, Sept. 30. 1983. as amended at
49 FR 38944, Oct. 2, 1984]
§30.307 How much must I contribute to
the funding of my project?
(a) The amount of cost sharing you
must contribute depends upon the
statutory and regulatory cost sharing
provisions that apply to your specific
assistance project (see 40 CFR parts 35
and 40). You must contribute at least
a 5 percent share of the total allow-
able project costs for each budget
period unless;
(DA lesser amount is specified in
the respective statute or regulation ap-
plicable to your project; or
(2) The assistance agreement is for a
remedial planning action under the
Comprehensive Environmental Re-
sponse, Compensation, and Liability
Act of 1980.
(b) You may satisfy the requirement
for cost sharing with cash or, when
not prohibited by statute or regula-
tions, with in-kind contributions. Your
contribution may not be paid with
Federal funds or with property or
services received under another assist-
ance agreement, unless authorized by
statute. Additionally, your contribu-
tions must be:
(1) Negotiated before and specified
in your assistance agreement;
(2) Verifiable from your records;
(3) Used exclusively for a single
project; and
331
-------
§30.308
(4) Properly allocable to and allow-
able under the project.
(c) All project expenditures by the
recipient shall be deemed to include
the Federal share.
[48 PR 45062. Sept. 30, 1983; 49 PR 38944,
Oct. 2. 1984]
§30.308 When may I begin incurring
costs?
(a) Except as permitted in
§ 30.306(d), paragraph (b) of this sec-
tion, or other EPA regulations, the
award official and you must sign the
EPA assistance agreement before you
incur costs.
(b) You may incur costs between the
date the award official signs the assist-
ance agreement and you sign the
agreement, provided the costs are
identified in the agreement and you
do not change the agreement.
[49 PR 38944. Oct. 2. 1984]
§ 30.309 What is the effect of accepting an
assistance agreement?
(a) When the award official signs
the assistance agreement, EPA will ob-
ligate Federal funds for the amount
stated in your assistance agreement
for the purposes of the award. EPA is
not obligated to provide Federal funds
for any costs incurred by you in excess
of the Federal share of your approved
budget. (See subpart G of this pan.)
(b) The award of an assistance
agreement constitutes a public trust.
By signing and accepting an assistance
agreement, you become responsible for
complying with all terms and condi-
tions of your assistance agreement, in-
cluding any special conditions neces-
sary to assure compliance with EPA
policies and objectives, this subchap-
ter, and any other applicable statute
or regulation. You must efficiently
and effectively manage your project,
successfully complete the project ac-
cording to the schedule, and meet all
monitoring and reporting require-
ments. You may not delegate or trans-
fer this responsibility.
40 CFR Ch. I (7-1-91 Edition)
Subpart D—How does EPA Pay Me?
§ 30.400 How does EPA make payments?
(a) EPA will promptly pay you for
allowable costs you incur in accord-
ance with EPA regulations and your
assistance agreement. If at any time,
EPA determines you received payment
for unallowable cost or received an
over-payment, you are required to re-
imburse EPA. (See § 30.802.)
(b) Your assistance agreement will
specify one of the following ways for
EPA to pay you. You will receive the
appropriate forms and instructions
with your assistance agreement.
(I) By letter of credit. EPA will pay
you by the letter of credit method, it
you meet the Treasury Department's
criteria contained in Treasury Circular
No. 1075, as revised. You must estab-
lish a separate bank account when
payments under a letter of credit are
made on a "check-paid" basis.
(2) By advance. If you do not qualify
for a letter of credit, EPA may pay
you by the advance payment method.
You must negotiate the amount of
your initial advance with the award of-
ficial. The negotiated amount should
not exceed the cash you will need for
the first three months of operation.
You must request the initial advance
on Standard Form 270 (SF 270, "Re-
quest for Advance or Reimburse-
ment") which will be included in your
award package. EPA will issue a check
for the first three months or one
check each month (at EPA's option) to
pay the advance. After your initial ad-
vance, you must submit an SF 270 at
least quarterly, but not more often
than monthly, indicating the amount
of your expenditures to date and your
request for funds for the coming
period.
(3) By reimbursement. If you do not
meet letter of credit requirements or
receive advance payments, EPA will
pay you by reimbursement. Also. EPA
generally will pay you under the reim-
bursement method if you are receiving
assistance under EPA's wastewater
treatment construction grants pro-
gram (see 40 CFR part 35, subpart I).
When EPA pays by this method, you
will be reimbursed for costs which you
332
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Environmental Piwlecfloo Agency
have Incurred and are currently and
legally obligated to pay.
§30.405 Can I assign my payment to
anyone else?
Except as provided for in 40 CFR
35.2025(bX2) of EPA's wastewater
treatment construction grants regula-
tion, you cannot assign your right to
receive payments under your assist-
ance agreement. EPA will make pay-
ments only to the payee identified in
the assistance agreement.
§30.410 How does EPA determine allow-
able costs?
To be allowable, costs must meet ap-
plicable statutory provisions and Fed-
eral cost principles. EPA uses the fol-
lowing cost principles in determining
allowable costs for all EPA assistance
agreements and subagreements under
them, except as otherwise provided by
statute or this subchapter. Regardless
of whether the organization is the re-
cipient of the award or is performing
services for the recipient, the nature
of the organization is the sole criterion
for determining applicable cost princi-
ples.
(a) State and local governments
must use OMB Circular A-87 to deter-
mine allowable costs;
(b) Educational institutions must
use: (1) OMB Circular A-21 cost prin-
ciples for research and development,
training, and other educational serv-
ices under grants, cooperative agree-
ments, and subagreements, and (2)
OMB Circular A-88 which provides
principles for coordinating the estab-
lishment of indirect cost rates and the
auditing of grants, cooperative agree-
ments, and subagreements;
(c) Other non-profit institutions
must use OMB Circular A-122, as re-
vised;
(d) Profit-making organizations
must use Federal Acquisition Regula-
tion 48 CFR subparts 31.1 and 31.2;
(e) Hospitals must use 45 CFR part
74, Appendix E.
[48 FR 45062. Sept. 30, 1983. as amended at
49 FR 38944. Oct. 2. 1984]
§30.412 How are costs categorized?
(a) Costs are categorized as being
either a direct cost if they support a
specific project only or as an indirect
§30501
cost as described in the applicable cost
principles (see 130.410). To receive
payment for indirect costs, you must
have negotiated an Indirect cost rate
with your cognizant Federal Agency
and your assistance agreement must
provide for the use of that rate.
(b) You may request a special indi-
rect cost rate, if (1) your project is
conducted at an off-site location; or (2)
your project is a large, one-time
project and its costs would distort the
normal direct cost base used in com-
puting the indirect cost rate.
Subparf E—Hew do I Manage My
Award?
§ 30.500 What records must I maintain?
(a) You must maintain official
records for each assistance award you
receive and identify them with EPA
assistance identification numbers.
These records must contain the fol-
lowing information:
(1) Amount received and expended
for the project, including all Federal
and cost sharing funds;
(2) Program income;
(3) Total cost of the project (both
direct and indirect costs);
(4) Property purchased under the
award or used as part of your in-kind
contribution;
(5) Time records and other support-
ing data. Institutions of higher educa-
tion may account for the distribution
of salaries and wages of professorial or
professional staff by budgeted.
planned, or assigned work activity if
the system for wages and salaries
meets the requirements in OMB Circu-
lar A-21;
(6) Documentation of compliance
with applicable statutes and regula-
tions.
(b) Your contractor must maintain
books, documents, papers, and records
pertinent to the project.
[48 FR 45062, Sept. 30, 1983, as amended at
49 FR 38945. Oct. 2, 1984]
§30.501 How long must I keep these
records?
(a) Generally you and your contrac-
tor must keep all records for three
years from the end of the project.
Except for real property and nonex-
333
-------
§30.502
pendable personal property records.
the beginning date of the three year
period depends on the type of project
you are conducting, as follows:
fl) For research, demonstration, and
training programs, the submission
date of a final Financial Status Report
(SF-269);
(2) For construction awards, the ap-
proval date of EPA's final payment for
the project.
(b) You must keep your records on
real property and nonexpendable per-
sonal property for three years from
the date of final disposition.
(c) If EPA terminates your award,
you must keep all records for three
years from the termination date,
except as provided in paragraph (b) of
this section.
(d) If litigation, a claim, a dispute
under subpart L, or an audit is begun
before the end of the three year
period, you must keep all records until
the three years have passed or until
the litigation, dispute, claim, or audit
is completed and resolved, whichever
is longer.
[48 FR 45062, Sept. 30. 1983: 49 FR 38945.
Oct. 2. 1984. as amended at 53 FR 8076.
Mar. 11.1988]
§ 30.502 To whom must my contractor and
I show these records?
You and your contractor must allow
the project officer and any authorized
representative of EPA, including the
Office of Inspector General, the
Comptroller General of the United
States, the Department of Labor, or a
representative of delegated States
under the wastewater treatment con-
struction grants program, to inspect,
copy, and audit records pertinent to
the project. Access to records is not
limited to the required retention peri-
ods. You and your contractor must
allow access to records at any reasona-
ble time for as long as the records are
kept.
§30.503 What type of quality assurance
practices am I required to have?
(a) If your project involves environ-
mentally related measurements or
data generation, you must develop and
implement quality assurance practices
consisting of policies, procedures, spec-
ifications, standards, and documenta-
40 CFR Ch. I (7-1.91 Edition)
tion which will produce data of quality
adequate to meet project objectives
and will minimize loss of data due to
out-of-control conditions or malfunc-
tions.
(b) Your quality assurance practices
must assure the reliability of monitor-
ing and measurement data and inte-
grate quality planning, quality assess-
ment, and quality improvement ef-
forts.
(c) As required in § 30.302(d), you
must develop and implement a quality
assurance program which is acceptable
to the award official in order to re-
ceive an EPA assistance award. All ap-
plications for financial assistance must
include a document as specified in
paragraphs (d), (e), or (f) of this sec-
tion.
(d) If your application is for re-
search financial assistance it must in-
clude a quality assurance narrative
statement which either addresses the
following areas or provides justifica-
tion why any of these areas do not
apply to the proposal:
(1) The intended use of the data and
the associated acceptance criteria for
data quality (precision, accuracy, rep-
resentativeness, completeness, compa-
rability);
(2) Project requirements for preci-
sion, accuracy, representativeness,
completeness, comparability, and how
these will be determined;
(3) Procedures for selection of sam-
ples or sampling sites and collection or
preparation of samples;
(4) Procedures for sample handling,
identification, preservation, transpor-
tation, and storage;
(5) Description of measurement
methods or test procedures with a
statement of performance characteris-
tics if methods are non-standard;
(6) Standard quality assurance/qual-
ity control procedures (e.g., American
Society for Testing Materials, Ameri-
can Public Health Association stand-
ard procedures) to be followed. Non-
standard procedures must be docu-
mented; and
(7) Data reduction and reporting
procedures, including description of
statistical analyses to be used.
(e) All other applicants for financial
assistance must submit with their ap-
plication (see § 30. 302(d)) a quality as-
334
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Environmental Protection Agoncy
§30.310
surance project plan acceptable to the
award official. (For assistance in pre-
paring a quality assurance project
plan see "Interim Guidelines and
Specifications for Preparing Quality
Assurance Projects Plans" QAMS-
005/80. This document (EPA-800/4-
83-004; NTIS PB 83-170514) may be
obtained from the National Technical
Information Service, 5885 Port Royal
Road, Springfield, Virginia 22161.)
The project plan must address the fol-
lowing items:
(1) Title of project and name of prin-
cipal investigators):
(2) Table of contents of project plan;
(3) Project description;
(4) Project organization and respon-
sibilities:
(5) Quality assurance objectives and
criteria for determining precision, ac-
curacy, completeness, representative-
ness. and compatability of data;
(8) Sampling procedures;
(7) Sample custody.
(8) Calibration procedures and fre-
quency and traceability of standards;
(9) Analytical procedures;
(10) Data reduction, validation, and
reporting;
(11) Internal quality control checks;
(12) Performance and system audits;
(13) Preventive maintenance;
(14) Specific standard operating pro-
cedures used to assess data precision,
accuracy, representativeness, and com-
parability:
(15) Corrective action for out-of-
control situations; and
(18) Quality assurance reporting pro-
cedures.
[48 FR 45062. Sept. 30. 1983: 49 PR 38945.
Oct. 2. 1984. as amended at 53 FR 8076.
Mar. 11. 19881
§ 30.505 What reports must I submit?
(a) Interim and final progress re-
ports. You must submit interim and
final progress reports If the assistance
agreement or EPA regulations require
them. See 40 CFR parts 35, 40. and 45
for specific requirements. EPA or its
authorized representatives may in-
spect your project at any reasonable
time to review its progress.
(b) Financial reports. (1) You must
submit a Financial Status Report (SF
269) within 90 days after each budget
period and within 90 days after the
end of your project completion or ter-
mination. If either the Financial
Status Report (FSR) you submit after
the budget period or the FSF vou
submit after your project is completed
or terminated includes unliquidated
obligations, you must submit a final
FSR immediately after those obliga-
tions are liquidated. If you do not
submit a final FSR within a reasona-
ble time after the 90 day period, the
award official may disallow the unliq-
uidated obligations.
(2) Recipients of fellowship assist-
ance agreements do not have to
submit FSR's.
(c) Invention reports. You must
report all Inventions to the award offi-
cial (see subpart K for details).
(d) Report on federally-owned prop-
erty. You must submit an annual in-
ventory of all Federally-owned proper-
ty used on your project. At the end of
the project period, or when you no
longer need the property, you must
submit a final inventory which states
the present condition of each item and
requests disposition instructions.
[48 FR 45062, Sept. 30. 1983. as amended at
49 FR 38945. Oct. 2. 1984. as amended at 53
FR 8076, Mar. 11. 1988]
§30.510 What type of financial manage-
ment system must I maintain?
You must
a financial man-
agement system that consistently ap-
plies accepted accounting principles
and practices and at least includes:
(a) An accurate, current, and com-
plete accounting of all financial trans-
actions for your project;
(b) Records, together with support-
ing documents showing the source and
application of all project funds. Includ-
ing assistance awards and authoriza-
tions. obligations, unobligated bal-
ances, assets, liabilities, outlays, and
income;
(c) Control over, and accountability
for, all project funds, property, and
other assets, and an assurance that
you used these solely for their author-
ized purpose;
(d) A comparison of actual costs
versus budgeted object class amounts;
(e) Procedures to ensure prompt dis-
bursement of Federal funds after you
receive them;
335
-------
§30.515
(f) Procedures for determining al-
lowable, allocable, and reasonable
costs;
^g) Audits at least every other year
on an organization-wide basis or as re-
quired by OMB Circular A-128, if ap-
plicable (see § 30.540); and
(h) A systematic method to resolve
audit findings and recommendations.
[48 FR 45062, Sept. 30, 1983. as amended at
51 PR 6353. Feb. 21. 1986]
§30.515 What restrictions on signs, sur-
veys, and questionnaires must I ob-
serve?
(a) Signs. You must place a visible
project identification sign at a con-
struction site. The sign must give
project information and credit EPA
for funding. Your project officer will
give you specifications for sign design,
content, and placement. The cost of
making and erecting the sign is an al-
lowable cost.
(b) Surveys and questionnaires. If
your survey or questionnaire states
that information is being collected for
the Federal Government, you must re-
quest written approval from EPA to
use Agency funds to cover the costs of
data collection. To assure compliance
with the Paperwork Reduction Act of
1980. Pub. L. 96-511 (44 U.S.C. 3501 et
seq.), the project officer can grant ap-
proval only with the agreement of the
EPA Headquarters reports manage-
ment officer. You must also receive
the project officer's approval to list
EPA as a recipient of the survey infor-
mation.
§ 30.518 What are the procedures for pub-
lishing scientific, informational, and
educational documents?
(a) EPA encourages publication of
the results of its assistance agree-
ments.
(b) You must comply with EPA's
peer and administrative review process
if you intend to release to the public
informational materials, reports, and
other products produced under an
EPA assistance agreement.
(1) Except for articles published
under paragraph (d) of this section.
you must submit three copies of the
documents to your project officer for
EPA review. EPA will evaluate the
40 CFR Ch. I (7-1-91 Edition)
documents and will provide you with
written, suggested changes, if any.
(2) You should make every effort to
accommodate suggestions arising from
the EPA review process while prepar-
ing a revised draft. You should alert
EPA reviewers to suggestions you
cannot accommodate and to changes
initiated by you in the revised draft.
(3) If an agreement is reached that
the material is appropriate for release
as an EPA publication, the following
statement must be included in the doc-
ument:
The information in this document has been
funded wholly or in part by the United
States Environmental Protection Agency
under assistance agreement (number) to (re-
cipient). It has been subjected to the Agen-
cy's peer and administrative review and has
been approved for publication as an EPA
document. Mention of trade names or com-
mercial products does not constitute en-
dorsement or recommendation for use.
(c) If agreement cannot be reached
that the material is appropriate for re-
lease as an EPA publication, you may
independently publish and distribute
the document for your own use and at
your own expense provided you in-
clude the following statement in the
document:
Although the information in this document
has been funded wholly or in part by the
United States Environmental Protection
Agency under assistance agreement
(number) to (recipient), it may not necessar-
ily reflect the views of the Agency and no
official endorsement should be inferred.
(d) EPA also encourages independ-
ent publication of reports in referred
journals at any time. You must submit
a copy of the article to your project of-
ficer when you send it for publication.
Following publication, three copies of
the article should be submitted to the
project officer. The article must in-
clude the following statement:
Although the research described in this ar-
ticle has been funded wholly or in part by
the United States Environmental Protection
Agency under assistance agreement
(number) to (recipient), it has not been sub-
jected to the Agency's peer and administra-
tive review and therefore may not necessari-
ly reflect the views of the Agency and no of-
ficial endorsement should be inferred.
336
-------
Environmental Protection Agoncy
§30.590
(e) Documents that are not to be re-
leased to the public as EPA publica-
tions but are part of a recipient's regu-
lar pollution control activities are not
subject to the EPA peer and adminis-
trative review process, e.g., State pollu-
tion control agency-published newslet-
ters and operation and maintenance
manuals under the wasterwater treat-
ment construction grants program.
However, EPA encourages you to es-
tablish a similar reveiw process before
publishing any documents at your own
expense. You may publish such docu-
ments only if you include the follow-
ing statement:
This project has been funded wholly or in
part by the United States Environmental
Protection Agency under assistance agree-
ment (number) to (recipient). The contents
of this document do not necessarily reflect
the views and policies of the Environmental
Protection Agency, nor does mention of
trade names or commercial products consti-
tute endorsement or recommendation for
use.
[48 FR 45062. Sept. 30. 1983; 49 PR 38945.
Oct. 2.1984]
§ 30.520 When may I use my own employ-
ees ("force account**)?
If costs will exceed $25,000, you must
get prior written authorization from
your project officer to use your own
employees or equipment for construc-
tion, construction-related activities, or
for repairs or improvements to a facili-
ty ("force account"). Tou must demon-
strate that (a) your employees can
competently and more economically
complete the work than contractors or
(b) an emergency circumstance makes
the use of "force account" necessary.
§30.525 How should I treat program
income?
(a) You may use program income to
fund additional eligible project activi-
ties, or if approved by the award offi-
cial, to meet your non-Federal share of
project costs.
(b) If you do not use the program
income to fund additional eligible ac-
tivities or you are not permitted to use
program income to meet your non-
Federal share of project costs, EPA
will subtract the income from the
total allowable project cost to deter-
mine the net cost on which the Feder-
al share will be based.
(c) Unless the assistance agreement
provides otherwise, you do not owe
EPA any of the royalties you earn on
copyrights or patents produced under
the assistance agreement. (See subpart
K of this part for EPA's rights regard-
Ing copyrights and patents.)
(d) You must keep complete records
showing all receipts and expenditures
related to program income.
§ 30.526 How do I treat interest earned on
EPA funds?
If you earn interest on an EPA ad-
vance, you must return it to EPA
unless you are:
(a) A State, or State agency as de-
fined under section 203 of the Inter-
governmental Cooperation Act of
1968. (42 U.S.C. 4213). or
(b) A tribal organization as defined
under sections 102. 103, or 104 of the
Indian Self Determination Act (25
U.S.C. 450f, 450g, and 450h).
§ 30.530 May I purchase personal property
using EPA assistance funds?
(a) Nonprofit institutions of higher
education conducting basic or applied
research and nonprofit organizations
whose primary purpose is the conduct
of scientific research. You may pur-
chase personal property for the con-
duct of basic or applied research if au-
thorized to do so in your assistance
agreement. Before you purchase prop-
erty or equipment with a unit acquisi-
tion cost of $10.000 or more, you must
receive the award official's approval.
Title will be vested in you but may be
limited as provided in paragraph (aXI)
of this section.
(1) If EPA determines that it is in
the best interest of the Agency, EPA
may reserve the right to transfer the
title for personal property having a
unit acquisition cost of $1,000 or more
to the Federal Government or a third
party, within 120 days after project
completion. EPA must identify such
property in the assistance agreement,
or otherwise notify you in writing that
EPA reserves the right to transfer the
title.
337
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§30.531
40 CFR Ch. I (7-1-91 Edition)
(2) If EPA does not reserve the right
to transfer the title, you have no other
obligations or accountability to EPA.
(b) Other recipients. You may pur-
cnase personal property with EPA as-
sistance funds if authorized to do so in
your assistance agreement. Before you
purchase personal property with a
unit cost of $10,000 or more, you must
receive the award official's approval.
Title will be vested in you, subject to
the following conditions:
(1) You must use the property in the
EPA assisted project for which it was
acquired as long as needed, whether or
not the project continues to be sup-
ported with EPA funds;
(2) You must assure that EPA's in-
terest (the percentage of EPA's par-
ticipation in the total award) is ade-
quately reflected and protected in
compliance with all recordation or r^z-
istration requirements of the UP' -ji
Commercial Code or other app:. ule
local laws on all nonexpendable per-
sonal property with a unit acquisition
cost of $10,000 or more;
(3) You must follow the property
management standards in § 30.531;
(4) You must follow the disposition
requirements in § 30.532; and
(5) EPA reserves the right to trans-
fer the title for nonexpendable person-
al property having a unit acquisition
cost of $1,000 or more to the Federal
Government or a third party, within
120 days after project completion.
EPA must identify such property in
the assistance agreement.
[48 FR 45062. Sept. 30. 1983; 49 FR 38945,
Oct. 2. 1984]
§30.531 What property management
standards must I follow for nonexpen-
dable personal property purchased with
an EPA award?
Nonprofit institutions of higher edu-
cation conducting basic or applied re-
search and nonprofit organizations
whose primary purpose is to conduct
scientific research are exempt from
the following standards. All other re-
cipients must comply with the follow-
ing property management standards.
Recipients may use their own property
management system if the system
meets the following minimum stand-
ards.
(a) Maintain accurate records re-
flecting:
(DA description of the property;
(2) Manufacturer's serial number.
model number, or other identification
number;
(3) Source of the property, including
assistance identification number;
(4) Whether title is vested in the re-
cipient or the Federal Government;
(5) Unit acquisition date and cost;
(6) The percentage of the Federal
share of the cost;
(7) Location, use, and condition of
property and the date the information
was recorded; and
(8) Ultimate disposition data, includ-
ing sales price or the method used to
determine the price, or the method
used to determine current fair market
value where a recipient compensates
EPA lor its share under § 30.532 of
this part.
(b) Conduct a physical inventory of
property, and reconcile the results
with the property records, at least
once every two years. Your inventory
must verify the current use and con-
tinued need for the property.
(c) Maintain a control system to pre-
vent loss, damage, or theft. (You must
thoroughly investigate and document
any loss, damage, or theft of nonex-
pendable personal property.)
(d) Maintain adequate maintenance
procedures that ensure the property is
in good condition and that instru-
ments used for precision measure-
ments are periodically calibrated.
(e) Maintain proper sales procedures
which provide for competition result-
ing in the highest possible return.
(f) Maintain identification of Feder-
ally-owned property.
[48 FR 45062, Sept. 30. 1983; 49 FR 38945.
Oct. 2. 1984]
§30.532 How do I dispose of personal
property?
Nonprofit institutions of higher edu-
cation conducting basic or applied re-
search and nonprofit organizations
whose primary purpose is the conduct
of scientific research are exempt from
the following requirements. All other
recipients must comply with the fol-
lowing requirements. When personal
property is no longer needed for the
338
-------
Environmental Protection Agency
§30.537
original project, you may use it on
other EPA projects. If you do not have
other EPA projects, you may use it on
other Federal projects. If you wish to
use the property on other than Feder-
ally sponsored activities, you must
comply with the following require-
ments;
(a) Generally, if you purchased non-
expendable personal property for less
than $1.000 per unit, you may either
keep it or sell it and keep the pro-
ceeds. However, if you are a profit-
making organization, you may keep
nonexpendable personal property only
if you reimburse EPA for its propor-
tionate share of the current fair
market value of the property.
(b) EPA is entitled to compensation
on nonexpendable personal property
you purchased for more than $1,000.
You may keep it, provided you com-
pensate EPA for its proportionate
share of the current fair market value.
If you do not want to keep the proper-
ty, your project officer will give you
instructions for disposition.
(c) [f, at the end of your project, you
have expendable personal property
with a total aggregate fair market
value exceeding $1,000, you may use
the property on other Federally spon-
sored projects. If you do not use the
property on other Federally sponsored
projects you must keep it or sell it, but
in either case you must compensate
EPA for its proportionate share of the
current fair market value.
[48 FR 45062, Sept. 30, 1983, as amended at
49 FR 38945. Oct. 2. 1984]
§30.535 May I purchase real property
with EPA awarded funds?
You may purchase real property
subject to the following conditions:
(a) The award official must approve
the purchase.
(b) Except as provided in paragraph
(f) of this section, you must use the
real property only for the purpose for
which it was purchased under the as-
sistance award.
(c) You comply with the require-
ments in 40 CFR part 4.
(d) You must also comply with 40
CFR part 35, subpart I, if your award
is a wastewater treatment construction
grant.
(e) You must assure that EPA's in-
terest is adequately reflected and pro-
tected in compliance with all recorda-
tion or registration requirements of
applicable local laws on real property.
(f) When it is no longer needed for
the original project:
(1) You must get approval from EPA
to use the property for other Federal-
ly supported projects or progams; or
(2) You must contact EPA for in-
structions on how to dispose of the
property. EPA may:
(i) Permit you to retain title to the
property provided you compensate
EPA for its share; or
(ii) Direct you to sell the property
and to compensate EPA for its share,
less your expenses; or
(iii) Direct you to transfer the title
of the property to the Federal Govern-
ment and then compensate you based
on your percentage of participation in
the original cost of the project, which
will be applied to the current fair
market value of the property.
[48 FR 45062. Sept. 30. 1983; 49 FR 38945,
Oct. 2. 1984]
§30.536 How do I manage federally-
owned property?
You must negotiate the use of feder-
ally-owned property with the award
official and comply with your lease
agreement and §30.505(d). You must
inform the project officer of the avail-
ability of the property when the prop-
erty is no longer needed for the assist-
ance project or when you have com-
pleted the project. EPA will give you
instructions on where to return the
property.
§30.537 Are contractors required to
comply with EPA property policies?
Generally, contractors are not re-
quired to comply with EPA property
policies. However, if your contractors
acquired personal property with EPA
funds, and the subagreement states
that ownership vests in you or EPA,
the contractor must comply with EPA
property policies.
339
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§30.538
40 CFR Ch. I (7-1-91 Edition)
§30.538 May I use General Services Ad-
ministration (GSA) supplies and serv-
ices?
* You may not use GSA sources of
supplies and services, or excess Gov-
ernment property. Excess Government
property consists of property under
the control of any Federal agency that
is not required for its needs.
§ 30.540 Who will audit my project?
(a) General EPA may perform pre-
award or interim audits, as well as a
final audit of your project. If EPA
audits your project, EPA will rely to
the extent practicable on your audits
conducted under § 30.510(g) (if done in
accordance with applicable audit
standards) instead of reauditing the
same records.
(b) Other recipients. The award offi-
cial may request a final audit after the
submission of, or the due date of, the
final Financial Status Report (see
§ 30.505(b)). Where your organization
has a cognizant Federal audit agency,
EPA will refer these audits to your or-
ganization's cognizant Federal audit
agency. Where OMB has not estab-
lished a cognizant Federal audit
agency, EPA staff may perform or ar-
range for the audit to be performed.
(48 FR 45062. Sept. 30. 1983. as amended at
53 FR 8076. Mar. 11. 1988]
§30.541 What are my audit responsibil-
ities?
(a) If you are an institution of
higher education audited as part of
single audits under the Single Audit
Act of 1984, 31 U.S.C. 7501-7507, you
must comply with the audit require-
ments of OMB Circular A-128. Other
institutions of higher education and
other nonprofit organizations (except
for certain hospitals under the Medic-
aid/Medicare programs, or subject to
contract closing audits) must comply
with the audit requirements of OMB
Circular A-133 for fiscal years that
begin after January 1, 1990, in accord-
ance with paragraphs (b) through (h)
of this section.
(b) If you receive $100,000 or more in
a year in Federal awards you must
have an audit made for that year in
accordance with the provisions of
OMB Circular A-133. However, if you
receive $100.000 or more but receive
awards under only one program, you
have the option of having an audit of
your Institution prepared in accord-
ance with the provisions of OMB Cir-
cular A-133 or having an audit made
of the one program. For pricr or sub-
sequent years, when an institution has
only loan guarantees or outstanding
loans that were made previously, the
institution may be required to conduct
audits for those programs, in accord-
ance with regulations of the Federal
agencies providing those guarantees or
loans.
(c) If you receive at least $25,000 but
less than $100,000 a year in Federal
awards you must have an audit made
for that year in accordance with OMB
Circular A-133 or have an audit made
of each Federal award, in accordance
with Federal laws and regulations gov-
erning the programs-in which you par-
ticipate.
(d) If you receive less than $25.000 in
a year in Federal awards you are
exempt from Federal audit require-
ments, but your records must be avail-
able for review by appropriate EPA or
subgranting entity officials.
(e) Audits shall usually be per-
formed annually but not less frequent-
ly than every two years.
(f) In arranging for audit services,
you must follow the procurement
standards prescribed by OMB Circular
A-110.
(g) If you receive EPA assistance and
provide $25,000 or more of it during
your fiscal year to a sub-recipient, you
must ensure that the requirements of
OMB Circulars A-133 or A-128 are
met, as appropriate.
(h) You must comply with the re-
quirements of OMB Circular A-133
concerning the use of small audit
firms and audit firms owned and oper-
ated by socially and economically dis-
advantaged individuals.
[56 FR 7305. Feb. 22. 1991]
§30.600 What Federal laws and policies
affect my award?
You must comply with all applicable
Federal laws.
(a) National Environmental Policy
Act You must comply with the Na-
tional Environmental Policy Act of
340
-------
inv(ronm«ntal Eiutectlon Ag«ncy
1969 (42 UJ3.C. 4321 et «eqr.) as amend-
ed and other related environmental
laws and executive orders that require
you to assess the environmental
impact of your project. See 40 CFR
part 6 for specific requirements.
(b) Flood Disaster Protection Act If
your project involves construction or
property acquisition In a special flood
hazard area, you must comply with
the Flood Disaster Protection Act of
1973 (Pub. L. 93-234, December 13,
1973). If your project is located in a
community participating in the Na-
tional Flood Insurance Program (42
U.S.C. 4001-4128), the Act requires
you to purchase flood insurance as a
condition of receiving EPA assistance.
If the community is not participating
in the National Flood Insurance Pro-
gram and the special flood hazard area
has been designated by the Federal In-
surance Administration of the Federal
Emergency Management Agency for
at least one year, EPA will not award
assistance for your project until the
community enters the program and
flood insurance is purchased. See 44
CFR parts 59 through 79 for specific
requirements.
(c) Clean Air Act Section 306 of the
Clean Air Act, (42 U.S.C. 7606), as
amended, and Executive Order 11738
prohibit EPA from awarding assist-
ance to you (with certain exceptions)
if you intend to use any facility on
EPA's List of Violating Facilities to
complete work on your agreement.
You must include a clause in all suba-
greements that requires the recipients
of those subagreements to comply
with the requirements of 40 CFR part
15 (see 40 CFR 33.1020).
(d) Federal Water Pollution Control
Act Section 508 of the Federal Water
Pollution Control Act, (33 U.S.C.
1368), as amended, and Executive
Order 11738 prohibit EPA from award-
ing assistance to you (with certain ex-
ceptions) if you intend to use any fa-
cility on EPA's List of Violating Facili-
ties to complete work on your agree-
ment. You must include a clause in all
subagreements to comply with the re-
quirements of 40 CFR part 15 (see 40
CFR 33.1020). Section 13 of the 1972
Amendments to the Act prohibits sex
discrimination under any program or
activity receiving assistance under the
§30.000
Act. See 40 CFR part 7 for specific re-
quirements.
(e) Civil Rights Act You must
comply with section 602, Title VI of
the Civil Rights Act of 1964. (42 U.S.C.
2000d). and related nondiscrimination
laws and Executive Order 11246.
These authorities prohibit you from
excluding any person from participat-
ing in, denying them the benefits of.
or discriminating against them on the
basis of race, color, or national origin
under any program or activity Involv-
ing Federal financial assistance. See 40
CFR parts 7 and 8 for specific require-
ments.
(f) Rehabilitation Act You must
comply with section 504 of the Reha-
bilitation Act of 1973, (29 U.S.C. 794),
as amended, which prohibits discrimi-
nation on the basis of handicap In
Federally assisted programs. See 40
CFR part 7 for specific requirements.
(g) Age Discrimination Act You
must comply with the provisions of
the Age Discrimination Act of 1975,
(42 U.S.C. 6101 et seq.), which prohibit
discrimination on the basis of age in
Federally assisted programs. See 40
CFR part 7 for specific requirements.
(h) Title IX of the Education Amend-
ments of 1972. You must comply with
Title IX of the Education Amend-
ments of 1972, (20 U.S.C. 1681 et seq.)
which prohibits sex discrimination in
Federally assisted education programs.
See 40 CFR part 7 for specific require-
ments.
(1) Uniform Relocation Assistance
and Real Property Acquisition Policies
Act You must comply with the Uni-
form Relocation Assistance and Real
Property Acquisition Policies Act of
1970. (42 U.S.C. 4601 et seq.\ if your
project involves acquiring an Interest
In real property and/or any displace-
ment of persons, businesses, or farm
operations. See 40 CFR part 4 for spe-
cific requirements.
(j) The Indian Self-Determination
and Education Assistance Act You
must comply with the Indian Self-De-
termlnatlon and Education Assistance
Act of 1975 (Pub. L. 93-638). If your
project will benefit Indians, the Act
requires you to give Indians prefer-
ence In training and employment op-
portunities and in the award of suba-
greements.
341
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§30,601
40 CFR Ch. I (7-1-91 Edition)
(k) The Hatch. Act If you are a State
or local government recipient, you
must ensure compliance with the
Hatch Act, (5 U.S.C. 1501 et seq.). as
amended. The Act requires State and
local government employees to comply
with the restrictions on political activi-
ties imposed by the Act if their princi-
pal employment activities are funded
wholly or in part by Federal assist-
ance. See 5 CFR part 151 for specific
prohibitions and exemptions.
(1) Safe Drinking Water Act Section
1424(e) of the Safe Drinking Water
Act (42 U.S.C. 300h-3(e)), prohibits
EPA from awarding assistance to you
if EPA determines that your project
may contaminate a sole source aquifer
which will result in a significant
hazard to public health. See CFR part
149.
[48 FR 45062. Sept. 30. 1983; 49 PR 38945.
Oct. 2. 1984]
§30.601 Are there restrictions on the use
of assistance funds for advocacy pur-
poses?
(a) You may not use assistance funds
for:
(1) Lobbying or influencing legisla-
tion before Congress;
(2) Partisan or political advocacy
purposes; or
(3) An activity whose objective could
affect or influence the outcome of an
EPA regulatory or adjudlcatory pro-
ceeding.
(b) For nonprofit recipient organiza-
tions other than educational institu-
tions, EPA will implement § 30.601(a)
(1) and (2) consistent with the require-
ments of OMB Circular A-122, as re-
vised (see § 30.4KXO).
[49 FR 38945, Oct. 2, 1984]
§30.603 What additional Federal laws
apply to EPA assisted construction
projects?
If you receive EPA assistance for a
project involving construction, you
must ensure compliance with the fol-
lowing additional requirements:
(a) The Davis-Bacon Act The Davis-
Bacon Act (40 U.S.C. 276a et seq.) as
amended, and implementing regula-
tions of the Department of Labor
under 29 CFR part 5 require you to
ensure that on construction subagree-
ments in excess of $2,000, your con-
tractors and subcontractors pay wages
to laborers and mechanics at least
equal to the minimum wages specified
by the Secretary of Labor if required
in the program statute.
(b) The Copeland Act The Copeland
(Anti-Kickback) Act, and the regula-
tions of the Department of Labor
under 29 CFR part 3 prohibit your
contractors and subcontractors from
inducing any person involved in your
project to give up any part of the com-
pensation to which that person is enti-
tled under an employment contract.
(c) The Contract Work Hours and
Safety Standards Act The Contract
Work Hours and Safety Standards Act
(40 U.S.C. 327 et seq.) and the regula-
tions of the Department of Labor
under 29 CFR part 5 require your con-
tractors and subcontractors to pay
wages to laborers and mechanics on
the basis of an eight hour work day
and 40 hour work week and to pay at
least time-and-a-half for work per-
formed in excess of these time limita-
tions. Also, the Act prohibits your con-
tractors and subcontractors from re-
quiring laborers and mechanics to
work in hazardous, unsanitary, or dan-
gerous conditions (see 29 CFR part
1926).
(d) Convict labor. You may not use
convict labor unless the convicts are
on work release, parole, or probation
(see 18 U.S.C. 436).
§30.610 What are my responsibilities for
preventing and detecting fraud and
other corrupt practices?
(a) You bear the primary responsi-
bility for preventing, detecting, and
prosecuting corrupt practices under
your assistance agreement.
(b) If you become aware of allega-
tions, evidence, or the appearance of
corrupt practices, you must:
(1) Immediately inform the EPA
project officer and the EPA Office of
Inspector General; and
(2) Promptly pursue available State
and local legal and administrative rem-
edies.
342
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Environmental Protection Agency
§30.700
§30.611 Can I hire a person or agency to
solicit EPA assistance for me?
Yes, but you may not reimburse
with EPA assistance funds any person,
corporation, partnership, agency, or
other entity which solicits or secures
SPA assistance lor you in exchange
for a commission, a percentage fee, a
brokerage fee, or a contingent fee.
§30.612 May an EPA employee act as my
representative?
(a) An EPA employee may not repre-
sent you as an agent or attorney in
any proceeding before EPA or any
other Federal agency in which the
United States is a party or has a direct
or substantial interest unless:
(1) You are a State or local govern-
ment agency;
(2) The EPA employee is on detail to
the agency under the Intergovernmen-
tal Personnel Act (5 U.S.C. 3371-3376);
and
(3) The representation takes place in
the context of carrying out programs
for which EPA and your agency have
a joint responsibility under the envi-
ronmental statutes.
(b) Except as provided for in para-
graph (a) of this section, an EPA em-
ployee must not act as an agent or at-
torney for a recipient or for a contrac-
tor or subcontractor of a recipient in
any claim against the United States.
§ 30.613 What is EPA's policy on conflict
of interest?
EPA's policy is to prevent personal
or organizational conflict of interest,
or the appearance of such conflict of
interest in the award and administra-
tion of EPA assistance, including suba-
greements. (For restrictions on EPA
employees, see 40 CFR part 3.)
(a) An official or employee of a re-
cipient may not participate in any ac-
tivity relating to EPA assistance if any
of the following persons or organiza-
tions, to the official's or employee's
knowledge, has a financial interest in
the activity:
(1) The official or employee himself;
(2) The official or employee's spouse
or minor child;
(3) A partner of the official or em-
ployee;
(4) An organization (other than a
public agency) in which the official or
employee serves as an officer, director,
trustee, partner, or employee; or
(5) Any person or organization with
whom the official or employee is nego-
tiating or has any arrangement con-
cerning prospective employment.
(b) Officials and employees of recipi-
ents must avoid any action which
might result in. or create the appear-
ance of:
(1) Using official position for private
gain;
(2) Giving preferential treatment to
any person;
(3) Losing independence or impar-
tiality;
(4) Making an official decision out-
side official channels; or
(5) Undermining public confidence
in the integrity of EPA programs.
§ 30.615 May I employ a former EPA em-
ployee and still receive assistance?
You may hire a former EPA employ-
ee and still receive assistance provided
the former employee complies with
the restrictions on post-employment
activities established by 18 U.S.C. 207.
These restrictions are explained in
regulations issued by the Office of
Personnel Management under 5 CFR
part 737 and EPA regulations under 40
CFR part 3.
Subpart G—Can an Assistance
Agreement be Changed?
§30.700 What changes to my assistance
agreement require a formal amend-
ment?
You must receive from the award of-
ficial a formal amendment before im-
plementing:
(a) A transfer of an award to an-
other recipient;
(b) Changes in the objectives of the
project;
(c) Changes in the assistance
amount;
(d) Substantial changes within the
scope of the project; or
(e) A rebudgeting of the following:
(1) Amounts budgeted for either
construction or non-construction ac-
tivities if transferred from one activity
to the other;
343
-------
§30.705
40 CFR Ch, I (7-1-91 Edition)
(2) Amounts budgeted for Indirect
costs to absorb increases in direct
costs; or
«. (3) Amounts budgeted for training
allowances if transferred to other cost
categories.
§30.705 What changes can I make to my
assistance agreement without a formal
amendment?
Minor changes in the project work
that are consistent with the objective
of the project and within the scope of
the assistance agreement do not re-
quire the execution of a formal
amendment before the recipient's im-
plementation of the change. However.
such changes do not obligate EPA to
provide Federal funds for any costs in-
curred by you in excess of the assist-
ance amount, unless approved in ad-
vance under § 30.700.
§30.710 Can I terminate a part or all of
my assistance agreement?
(a) You and EPA may terminate a
part or all of your assistance agree-
ment, when both parties agree that
the continuation of the project will
not produce beneficial results. You
and the award official must agree on
the conditions of the termination, the
effective date, and in the case of par-
tial termination, the portion to be ter-
minated. EPA may unilaterally termi-
nate for cause your assistance agree-
ment under § 30.903 of this part.
(b) EPA will pay you the Federal
share of allowable costs incurred up to
the date of termination and allowable
costs related to commitments you
made prior to termination that you
cannot cancel.
Subport H—How do I Close out my
Profact?
§ 30.800 What records and reports must I
keep after I complete my project?
You and your contractors must keep
all books, records, documents, and
other evidence (including accounting
procedures and practices and suba-
greement documents) that track the
progress of your project In accordance
with the requirements under S 30.501.
§ 30.802 Under what conditions will I owe
money to EPA?
(a) If the award official determines
that you owe funds, you must reim-
burse the Federal government that
amount. EPA will take appropriate
legal and administrative action to col-
lect the amount you owe the Agency if
reimbursement is not made in a timely
manner. EPA may offset the debt
against other funds payable to you
under an EPA or other Federal agency
assistance agreement if not explicitly
prohibited by another statute.
(b) EPA will charge you Interest If
you fall to pay within 30 days from
the date of the Agency's decision that
a debt is owed. The interest rate will
be the rate established by the Secre-
tary of the Treasury in accordance
with the Treasury Fiscal Require-
ments Manual 6-8020.20. The rates are
published quarterly in the FEDERAL
REGISTER.
(c) If you are not a State or local
government, EPA will charge you its
cost to process and handle the overdue
debt at the end of each 30 day period
the debt is overdue, and a penalty of
6% per annum if the debt is not paid
within 120 days after the date of the
Agency's decision that a debt is owed.
[48 FR 45062, Sept. 30. 1983. as amended at
51 FR 6353, Feb. 21. 1986]
Subport I—What Measures may EPA
Take for Non-compliance?
§ 30.900 What measures may EPA take for
non-compliance?
If you do not comply with all of the
terms and conditions of your assist-
ance agreement, the award official
may apply any of the following:
(a) Issue a stop-work order;
(b) Withold payment;
(c) Suspend or terminate your assist-
ance agreement for cause;
(d) Annul your assistance agree-
ment;
(e) Request that the Director.
Grants Administration Division, debar
or suspend you as an eligible recipient;
(f) Take other appropriate adminis-
trative action; or
(g) Institute judicial proceedings.
344
-------
Environmental Protection Agency
[48 PR 45062. Sept. 30. 1983. as amended at
49 FR 38945, Oct. 2. 1984]
S 30.901 What are the consequences of a
stop-work order?
(a) A stop-work order requires you to
Immediately stop the work or activi-
ties described In the order and to take
all reasonable steps to minimize costs
incurred on the work. The award offi-
cial will issue the order in writing. The
order will be in effect for forty-five
days after you receive it unless can-
celled or extended by mutual agree-
ment between you and EPA. If the
problem cannot be resolved during the
stop-work period and EPA is likely to
terminate or annul the agreement, the
award official will so inform you.
(b) If the stop-work order is can-
celled and it caused any increase in
the cost of and/or the time for com-
pleting the project, you may request
an adjustment in the project period,
budget period, or assistance amount.
You must submit a request for adjust-
ment to the project officer within
sixty days after the stop-work order
ended.
§30.902 What are the consequences of
withholding payments?
(a) The award official may withhold
payments when you fail to comply
with the tasks, reporting require-
ments, or conditions of your assistance
agreement. The award official will pro-
vide you reasonable notice in writing
before withholding payment.
(b) The award official may withhold
only the amount necessary to assure
compliance with your assistance sigree-
ment.
(c) The award official may withhold
payment to the extent you are indebt-
ed to the United States, unless the col-
lection of the indebtedness will impair
the accomplishment of the project and
the continuation of the project is in
the best interest of the United States.
9 30.903 What are the consequences of ter-
mination for cause?
(a) The award official may unilater-
ally terminate your agreement in
whole or in part at any time before
the date of completion, whenever he
determines that you have failed to
comply with the conditions of your
§30.904
agreement. The award official will pro-
vide you an opportunity for consulta-
tion before issuing a notice of termina-
tion.
(b) If EPA terminates your agree-
ment, the award official will notify
you in writing of his determination,
the reasons for the termination, and
the effective date. Upon receiving the
termination notice, you must stop
work Immediately. EPA will not reim-
burse you for any new commitments
you make after you receive the termi-
nation notice.
(c) EPA will pay you the Federal
share of allowable costs incurred up to
the date of termination and allowable
costs related to commitments you
made prior to termination that you
cannot cancel.
§ 30.904 What are the consequences of an-
nulment?
(a) The award official may unilater-
ally annul in whole or in part your as-
sistance agreement in any of the fol-
lowing cases:
(1) You have made no substantial
progress on the project without good
cause;
(2) You obtained an assistance
agreement by fraud or misrepresenta-
tion;
(3) You are found to practice cor-
rupt administrative procedures;
(4) You have inordinately delayed
project completion without good
cause; or
(5) You have failed to meet the
project purpose to the extent that the
fundamental purpose stated in the as-
sistance agreement is frustrated.
(b) If EPA intends to issue an annul-
ment, the award official will inform
you of the annulment in writing. The
award official will provide you an op-
portunity for consultation before issu-
ing a notice of annulment. If your as-
sistance agreement is annulled, you
must return ail funds received for the
project including those already ex-
pended. EPA may pursue other avail-
able remedies under Federal, State,
and local laws.
345
-------
§30.905
§ 30.905 May I request a review of a termi-
nation or annulment?
You may request a review of EPA's
decision to terminate or annul an as-
sistance agreement. Within thirty
days after the notice of termination or
annulment is issued, you must file a
written request for review to the ap-
propriate Assistant or Regional Ad-
ministrator. Your request for review
must follow the procedures under sub-
part L of this part.
[49 FR 38945. Oct. 2, 1984]
§30.906 What are the consequences of
suspension or debarment?
EPA may suspend or debar you in
accordance with 40 CFR part 32. You
may not receive assistance or a suba-
greement if your name or organization
appears on EPA's Master List of De-
barred and Suspended Firms and Indi-
viduals.
[48 FR 45062. Sept. 30, 1983; 49 FR 38945.
Oct. 2. 1984]
Subport J—Can I get An Exception
("Deviation") From These Regu-
lations?
§30.1001 Will EPA approve any excep-
tions to these regulations?
(a) On a case-by-case basis, EPA will
consider requests for exceptions to
these regulations.
(b) EPA may issue a "deviation"
from any of its assistance related regu-
lations, except for those that imple-
ment statutory and executive order re-
quirements.
(c) The award official may "waive"
certain requirements of this subchap-
ter for foreign awards. All provisions
waived will be stated in the assistance
agreement.
[48 FR 45062. Sept. 30, 1983; 49 FR 38945.
Oct. 2. 19841
§ 30.1002 Who may request a deviation?
You, your project officer, or an EPA
program office may request a devi-
ation from EPA regulations. If you are
the initiator, you must send your writ-
ten request to your project officer if
the request is for a Headquarters pro-
gram or to the Regional Administrator
for a Regionally administered pro-
40 CFR Ch. I (7.1-91 Edition)
gram, who will then forward the re-
quest to the Director. Grants Adminis-
tration Division, with a recommenda-
tion for approval or disapproval.
§30.1003 What information must I in-
clude in a deviation request?
Your request must include the fol-
lowing information:
(a) Your name, the assistance identi-
fication number, date of award, and
the dollar value of the application or
award;
(b) The section of the regulation
from which you need a deviation;
(c) A complete description of what
the deviation will do and a justifica-
tion of why the deviation is necessary;
and
(d) A statement of whether the same
or a similar deviation has been previ-
ously requested. If such a request has
been made previously, explain why it
was made and the outcome.
§ 30.1004 Who approves or disapproves a
deviation request?
(a) The Director, Grants Administra-
tion Division (GAD), approves or dis-
approves your deviation request. As-
sistant Administrators in the affected
program areas must review and concur
on deviations affecting a class of appli-
cants or recipients.
(b) If EPA approves the deviation
before an award, the revised require-
ment will be included in your assist-
ance agreement. Approval of a devi-
ation before an award does not guar-
antee an award.
§ 30.1005 May I request a review of a devi-
ation decision?
You may not request a review of a
deviation decision under the proce-
dures in subpart L of this part. Howev-
er, you may request the Director of
the Grants Administration Division to
reconsider his decision.
[48 FR 45062. Sept. 30. 1983; 49 FR 38945.
Oct. 2, 1984]
346
-------
Environmental Protection Agoncy
Subpart K—What Policies Apply to
Patents, Data, and Copyrights?
§30.1100 What assistance agreements are
subject to EPA patent rules?
Except for wastewater treatment
construction grants awarded under
Title II of the Clean Water Act. as
amended, all EPA assistance agree-
ments involving experimentation, de-
velopment, special investigations, sur-
veys, studies, or research are subject
to the EPA patent rules.
§30.1101 What Federal patent laws or
policies govern my assistance agree-
ment?
The nature of your organization will
determine which laws and policies
govern your assistance agreement:
(a) Small business firms and non-
profit organizations, including educa-
tional institutions, are entitled to the
benefits of, and must comply with 35
U.S.C. Chapter 18 (1982). and the
patent rights clause in OMB Circular
A-124, Attachment A (49 FR 10393).
(b) A profltmaklng firm that is not
defined as a small business firm, and
whose assistance agreement is funded
under section 6914 of the Resource
Conservation and Recovery Act
(RCRA), must comply with section
698KO of RCRA. See Federal Acquisi-
tion Regulation 48 CFR part 27 and 48
CFR 52.227-13 (49 FR 12972).
(c) If you are neither a small busi-
ness firm nor a profitmaking firm with
an award under section 6914 of RCRA,
you are subject to the guidelines in
the President's Memorandum on Gov-
ernment Patent Policy issurd on Feb-
ruary 18, 1983 (Weekly Compilation of
Presidential Documents, vol. 19, no. 7,
page 252). and, therefore, must comply
with 35 U.S.C. Chapter 118 (1982) and
the patent rights clause cited in
§ SO.llOKa).
[48 FR 45062. Sept. 30, 1983; 49 FR 38946.
Oct. 2. 1984)
§30.1102 What are my invention rights
and my reporting requirements if my
award ia other than an award under
section 6914 of RCRA?
You must report all inventions to
the Award Official and decide whether
you wish to retain domestic and/or
§30.1106
foreign righto to your invention. Tou
must report your invention and notify
the Award Official of your decision
within the time periods specified in
the oatent rights clause cited in
§ SO.llOKa). If you do not retain the
rights to your invention. EPA may ac-
quire the title from you. If you retain
title, EPA acquires a royalty-free, ir-
revocable license to use the Invention
throughout the world by. and on
behalf of. the Federal Government.
[49 FR 38946, Oct. 2, 1984]
§30.1103 What are my invention rights
and obligations if I am a profitmaking
firm with an award under section 6914
of RCRA?
If you are not a small business and
your assistance agreement does not in-
dicate otherwise, you must comply
with the patent rights clause, entitled
"Patent Rights Acquisition by the
Government" (48 CFR 52.227-13),
which implements section 6981(c) of
RCRA. Under this section, EPA nor-
mally obtains title to your invention.
[48 FR 45062, Sept. 30. 19*3; 49 FR 38946.
Oct. 2. 1984]
§30.1104 Can I get a waiver from section
6981(c) of RCRA?
On a case by case basis, you may ask
EPA for a deviation from section
6981(c) of RCRA. You must follow the
procedures in subpart J.
§30.1106 Do the patent rules apply to su-
bagreements?
(a) Yes, if the subagreements involve
experimentation, development, special
investigations, surveys, studies, or re-
search, you must include the appropri-
ate patent rights clause in the suba-
greement. All business firms and non-
profit organizations awarded subagree-
ments are entitled to the benefits and
must comply with 35 U.S.C. Chapter
18 (1982) and the President's Memo-
randum on Government Patent Policy
of February 18, 1983. except that a
party to a subagreement awarded
under section 6914 of RCRA which is
a profitmaking firm not defined as a
small business firm, is subject to
§5 30.1101(b) and 30.1103.
347
-------
§30.1108
(b) Subagreements must be In com-
pliance with the "Patent and data and
copyright clause" in 40 CFR part 33,
and generally must contain the same
patent rights clause as contained in
your assistance agreement.
(48 FR 45062, Sept. 30, 1983; 49 FR 38946.
Oct. 2.1984]
§ 30.1108 Does EPA require any type of li-
censing of background patents that I
own?
Generally, EPA does not require
such licensing. However, in awards
subject to 35 U.S.C. Chapter 18 (1982)
the Administrator may approve such a
requirement under exceptional cir-
cumstances.
[48 FR 45062. Sept. 30. 1983; 49 FR 38946.
Oct. 2. 1984]
§30.1112 Are there any other patent
clauses or conditions that apply to my
award?
Your award is subject to both the
Notice and Assistance Clause and the
Authorization and Consent Clause in
Appendix B to this part.
§30.1130 What rights in data and copy-
rights does EPA acquire?
All assistance agreements and suba-
greements are subject to Appendix C.
As set forth in Appendix C, the Feder-
al Government has an unrestricted
right to use any data or information
generated using assistance funds or
specified to be delivered to EPA in the
assistance agreement. The Federal
Government has a royalty-free, irrevo-
cable license to use any copyrighted
data in any manner for Federal Gov-
ernment purposes.
Subport L—How are Disputes Be-
tween EPA Officials and me Re-
solved?
§ 30.1200 What happens if an EPA official
and I disagree about an assistance
agreement requirement?
(a) Disagreements should be re-
solved at the lowest level possible.
(b) If you can not reach an agree-
ment, the EPA disputes decision offi-
cial will provide you with a written
final decision. The EPA disputes deci-
sion official is the individual designat-
40 CFR Ch. I (7-1-91 Edition)
ed by the award official to resolve dis-
putes concerning your assistance
agreement.
(c) The disputes decison official's de-
cision will constitute final agency
action unless you file a request for
review by registered mail, return re-
ceipt requested, within 30 calendar
days of the date of the decision.
[48 FR 45062. Sept. 30. 1983; 49 FR 38946.
Oct. 2. 1984]
§30.1205 If I file a request for review,
with whom must I file?
(a) For final decisions issued by an
EPA disputes decision official at Head-
quarters, you must file your request
with the Assistant Administrator re-
sponsible for the assistance program.
(b) For final decisions issued by a
Regional disputes decision official, you
must file your request for review with
the Regional Administrator. If the Re-
gional Administrator issued the final
decision, you must request the Region-
al Administrator to reconsider that de-
cision.
§30.1210 What must I include in my re-
quest for review or reconsideration?
Your request must include:
(a) A copy of the EPA disputes deci-
sion official's final decision;
(b) A statement of the amount in
dispute;
(c) A description of the issues in-
volved; and
(d) A concise statement of your ob-
jections to the final decision.
§ 30.1215 What are my rights after I Tile a
request for review or reconsideration?
(a) You may be represented by coun-
sel and may submit documentary evi-
dence and briefs for inclusion in a
written record;
(b) You are entitled to an informal
conference with EPA officials; and
(c) You are entitled to a written de-
cision from the appropriate Regional
or Assistant Administrator.
348
-------
Environmental Protection Agoncy
Pt. 30, App. A
§30.1220 If the Assistant Administrator
confirms the final decision of the
Headquarters disputes decision official,
may I seek further administrative
review?
A decision by the Assistant Adminis-
trator to confirm the final decision of
a Headquarters disputes decision offi-
cial will constitute the final Agency
action.
§30.1225 If the Regional Administrator
confirms the final decision of the Re-
gional disputes decision official, may I
seek further administrative review at
EPA Headquarters?
(a) A determination by the Regional
Administrator to confirm the Regional
disputes decision official's decision will
constitute the final Agency action.
However, you may file a petition for
discretionary review by the Assistant
Administrator responsible for the as-
sistance program within 30 calendar
days of the Regional Administrator's
decision. Your petition must be sent to
the Assistant Administrator by regis-
tered mail, return receipt requested.
and must include:
(DA copy of the Regional Adminis-
trator's decision; and
(2) A concise statement of the rea-
sons why you believe the decision is er-
roneous.
(b) If the Assistant Administrator
decides not to review the Regional Ad-
ministrator's decision, the Assistant
Administrator will advise you in writ-
ing that the Regional AdmlrJstrator's
decision remains the fina> Ageicy
action.
(c) If the Assistant Administrator
decides to review the Regi jnal Admin-
istrator's decision, the review will gen-
erally be limited to the written record
on which the Regional Administrator's
decision was based. The Assistant Ad-
ministrator may allow you to submit
briefs in support of your petition for
review and may provide you an oppor-
tunity for an informal conference in
order to clarify factual or legal issues,
After reviewing the Regional Adminis-
trator's decision, the Assistant Admin-
istrator will issue a written decision
which will then become the final
Agency action.
§30.1230 Will I be charged interest If I
owe money to EPA?
(a) Interest will accrue on any
amounts of money due and payable to
EPA from the date of the disputes de-
cision official's final decision, even if
you request review of the decision
under this subpart. Only full payment
of the debt within 30 days of the dis-
putes decision officials' final decision
will prevent EPA from charging Inter-
est. If you pay a debt but request
review under this subpart and the
amount of the debt is reduced as a
result of the review, EPA will refund
the interest and penalty charges that
you paid on the adjustment. However,
processing and handling charges
which you may have paid are refund-
able only if EPA determines that the
entire amount of the debt is not owed.
(b) State and local government re-
cipients are not subject to the penalty
and handling charges in this section,
but are subject to the interest charges.
[48 PR 45062. Sept. 30. 1983. as amended at
51 FR 6353. Feb. 21.1986]
§30.1235 Are there any EPA decisions
which may not be reviewed under this
subpart?
You may not request a review of;
(a) Disapprovals of deviations under
subpart J;
(b) Bid protest decisions under part
33;
(c) National Environmental Policy
Act decisions under part 6;
(d) Advanced wastewater treatment
decisions of the Administrator, and
(e) Policy decisions of the EPA Audit
Resolution Board.
[48 FR 45062. Sept. 30. 1983. as amended at
49 FR 38946. Oct. 2. 1984]
APPENDICES TO PART 30
APPENDIX A TO PART 30—EPA
PROGRAMS
The following chart Identifies EPA's as-
sistance programs and the types of awards
(grants or cooperative agreements) that
EPA will award under these programs.
349
-------
Pt. 30, App. B
40 CFR Ch. I (7-1-91 Edition)
Catalog
of
Federal
domes-
tic
aisist-
anca
No
66001
66003
66006
66418
66419
66420
66428
66.432
66433
66435
66438
66.451
66454
66 500
66501
66502
66504
66.505
66506
66507
66.600
66603
66700
66802
Title
Air Pollution Control Program
Air Pollution Control Manpower Train-
ing . .
Air Pollution Control— Technical Train-
ing
Air Pollution Control Fellowships . .
Construction Grants for Wastewater
Treatment Works
Water Pollution Control— State and
Interstate Program
Water Pollution Control— State and
Local Manpower Program Develop-
ment . ...
Water Pollution Control Fellowships
Water Pollution Control— Professional
Training
State Public Water System Supervision
Program
State Underground Water Source Pro-
tection Program
Water Pollution Control— Lake Restora-
tion Cooperative Agreements
Construction Management Assistance
Hazardous Waste Management Finan-
cial Assistance to States
Water Quality Management Planning.
Safe Onnking Water Professional
Training. .
Sato Drinking Water Occupational
Training . ...
Sato Dnnking Water Fellowships
Envronmental Protection— Consolidat-
ed Research
Air Pollution Control Research
Pesticides Control Research
Solid Waste Disposal Research
Water Pollution Control— Research.
Development, and Demonstration
Sato Onnking Water Research and
Demonstration
Toxic Substances Research
Environmental Protection Consolidated
Grants— Program Support
Loan Guarantees (or Construction of
Treatment Works
Pesticides Enforcement Program
Grants
State Inventories of Uncontrolled Haz-
ardous Waste Sites
Hazardous Substance Response Trust
Fund (SupeHund)
Funding
mecha-
nism
(')
(')
(')
(4)
(')
(s>
(4)
(!)
(">
(3)
(')
(')
(')
(a)
s)
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3)
')
')
3)
(')
(')
<">
(')
(")
(')
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(')
1 Cooperative Agreement
2 Grant Agreement
a Either
* Loan or Fellowship
APPENBIX B TO PART 30—PATENTS AND
COPYRIGHTS CLAUSES
Notice and Assistance Clause
(a) The recipient must report to the
project officer, promptly and in reasonable
written detail, each known notice or claim
of patent or copyright Infringement on this
agreement.
(b) In the event of any claim or suit
against the Government, on account of any
alleged patent or copyright infringement
arising out of the performance of this agree-
ment or out of the use of any supplies fur-
nished or work or services performed here-
under. the recipient must furnish to the
Government, when requested by the project
officer, all evidence and Information in pos-
session of the recipient pertaining to such
suit or claim. Such evidence and informa-
tion must be furnished at the expense of
the Government except where the recipient
has agreed to indemnify the Government.
(c) The recipient must include in each si -
bagreement (including any lower tier suba-
greement) in excess of $10,000 a clause sub-
stantially similar to the foregoing provi-
sions.
Authorization and Consent Clause
EPA gives its authorisation and consent
for all use and manufacture of any inven-
tion described in and covered by a patent
held by the United States in the perform-
ance of an assistance agreement and any su-
bagreement.
APPENDIX C TO PART 30—RIGHTS IN
DATA AND COPYRIGHTS
(a) The term subject data as used in this
clause includes writing, technical reports.
sound recordings, magnetic recordings, com-
puter programs, computerized data bases,
data bases in hard copy, pictorial reproduc-
tions, plans, drawings, including engineering
or manufacturing drawings, specifications,
or other graphical representations, and
works of any similar nature (whether or not
copyrighted) which an applicant submits or
which EPA specifies to be delivered under
this assistance agreement or which a recipi-
ent develops or produces and EPA pays for
under this assistance agreement. The term
does not include financial reports, cost anal-
yses, and other information incidental to as-
sistance agreement administration.
(b) Except as may otherwise be provided
in this assistance agreement, when publica-
tions, films, or similar materials are devel-
oped directly or indirectly from a project
supported by EPA, the author is free to ar-
range for copyright without approval. How-
ever such materials shall be subject to the
provisions of 40 CFR 30.518. The recipient
agrees to and does hereby grant to the Gov-
ernment, and to its officers, agents, and em-
ployees acting within the scope of their offi-
cial duties, a royalty-free, nonexclusive, and
irrevocable license throughout the world for
350
-------
Environmental Protection Agoncy
Government purposes to publish, translate.
reproduce, deliver, perform, dispose of and
to authorize others so to do. all subject
data, or copyrlghtable material based on
such data, covered by copyright now or In
the future.
(c) The recipient shall not Include In the
subject data any copyrighted matter with-
out the written approval of the project offi-
cer, unless he provides the Government
with the written permission of the copy-
right owner for the Government to use the
copyrighted matter in the manner provided
In paragraph (b) above.
(d) Nothing contained in this Appendix
shall imply a license to the Government
under any patent or be construed as affect-
ing the scope of any license or other rights
otherwise granted to the Government under
any patent.
(e) Unless otherwise limited below, the
Government may. without additional com-
pensation to the recipient, duplicate, use.
and disclose in any manner and for any pur-
pose whatsoever, and have others so do. all
subject data.
(f) Notwithstanding any provisions of this
assistance agreement concerning inspection
and acceptance, the Government shall have
the right at any time to modify, remove, ob-
literate, or ignore any marking restricting
disclosure of subject data If the marking is
not authorized by the terms of this assist-
ance agreement.
(g) Data need not be furnished for stand-
ard commercial items or services which are
normally sold, or have been sold, or offered
to the public commercially by ar y supplier
and which are incorporated as component
parts in or to be used with the product or
process being developed or Investigated
under this assistance agreement, if in lieu
thereof identification of source and charac-
teristics (including performance spec
-------
331.1
iPA
MaJntafci « financial managamanl tyatam
ing pdndpte md
GornpV with EPA paar and aUii**straM»a
(10) Obtain EPA'a wrmao auUmliaUon to u»a
tna racJOJanfa OIMI amptoyaaa or ao^tfpmant
for conatructton. conatrurton-ralatai
ttaa, or for rapan or improx«m«nti to •
'•ciWy ("fom •ooount")........« „.....-..-......«
(11) OtotUn EPA't approval Man purclwlno
propwiy or «qulpm«nt mtti • unit acquMHon
coat of S10.000 or mora . »—
/4 9% ^^kan^i^kd t^^Mh ^h^i^ft^J^ «^iM^M^MtfeJ
(i«i wompn/ wnn oanain propany
(13) Comply wNh EPA raquiramantt wtian dh>
poalng of praparty wHh a purcftaaa prloa of
Si .000 or mora
(14) Obtaai EPA approval for «w purcriaaa of
(15) Comply wNh EPA raqiAramanti for man-
(16) RaquaatEPA approval to davtato from
6PA ^^B^aJiQJi^ ii iiiinrlllnln-lllnlllljunllll T
(17) Foaow cartoJR procaouraa to raajuaat a
raviaw of an award offlcWa wrtttan final
daoWon on a dtoputa ovar tna raqUramantt
man
No.
> 2010-0004
•2010-0004
'20104004
•2010-0004
•20104004
•2010-0004
•2010-0004
•2010-0004
•2010-0004
• OMB Oaaranoa Number 2010-0004
OMB for a ttma artanaton on Saptamoar_l9. lfM3.
pubHah OMB*a axtanaton In
1 Wi by aubmMad to OMB.
' No daaranoa
[48 PR 46062. Sept 30. 1983; 49 PR 38946.
Oct. 2.1984]
40 CM Ok I (7-1-91 MHtoN)
352
-------
APPENDIX E
-------
APPENDIX E
40 CFR PART 31, "UNIFORM
ADMINISTRATIVE REQUIREMENTS FOR
GRANTS AND COOPERATIVE AGREEMENTS
TO STATE AND LOCAL GOVERNMENTS"
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Environmental Protection Agoncy
Pad 31
PART 31—UNIFORM ADMINISTRA-
TIVE REQUIREMENTS FOR GRANTS
AND COOPERATIVE AGREEMENTS
TO STATE AND LOCAL GOVERN-
MENTS
Subpart A—General
Sec.
31.1
31.2
31.3
31.4
31.5
31.6
Purpose and scope of this part.
Scope of subpart.
Definitions.
Applicability.
Effect on other issuances.
Additions and exceptions.
Subpart R—Pre-Award Requirement*
31.10 Forms for applying for grants.
31.11 State plans.
31.12 Special grant or subgrant conditions
for "high-risk" grantees.
31.13 Principal environmental statutory
provisions applicable to EPA assistance
awards.
Subpart C—Past-Award Requirements
FINANCIAL ADMINISTRATION
31.20 Standards for financial management
systems.
31.21 Payment.
31.22 Allowable costs.
31.23 Period of availability of funds.
31.24 Matching or cost sharing.
31.25 Program income.
31.26 Non-Federal audit.
CHANGES. PROPERTY. AND SUBA WARDS
31.30 Changes.
31.31 Real property.
31.32 Equipment.
31.33 Supplies.
31.34 Copyrights.
31.35 Subawards to debarred and suspend-
ed parties.
31.36 Procurement.
31.37 Subgrants.
REPORTS. RECORDS. RETENTION. AND
ENFORCEMENT
31.40 Monitoring and reporting program
performance.
31.41 Financial reporting.
31.42 Retention and across requirements
for records.
31.43 Enforcement.
31.44 Termination for convenience.
31.45 Quality assurance.
Subpart D—AfteMne-Grant Requirements
31.50 Closeout.
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§31.1
31.51 Later disallowances and adjustments.
31.52 Collection of amounts due.
Subpart I—EnffltoiMntvi [Reserved]
Subpart F—Disputes
31.70 Disputes
APPENDIX A—PART 30 AUDIT REQUIREMENTS
FOR STATE AND LOCAL GOVERNMENT RE-
CIPIENTS
AUTHORITY: 33 U.S.C. 1251 et seq.; 42
U.S.C. 7401 et seq.: 42 U.S.C. 6901 et seq.; 42
U.S.C. 300f et seq.; 7 U.S.C. 136 et seq.; 15
U.S.C. 2601 et seq.; 42 U.S.C. 9601 et seq.: 20
U.S.C. 4011 et seq.; 33 U.S.C. 1401 et seq.
SOURCE 53 PR 8075 and 8087. Mar. 11.
1988. unless otherwise noted.
EFFECTIVE DATE NOTE: At 53 PR 8075 and
8087. Mar. 11. 1988. Part 31 was added, ef-
fective October 1.1988.
Subpart A—General
§ 31.1 Purpose and scope of thig part.
This part establishes uniform ad-
ministrative rules for Federal grants
and cooperative agreements and
subawards to State, local and Indian
tribal governments.
§ 31.2 Scope of subpart
This subpart contains general rules
pertaining to this part and procedures
for control of exceptions from this
part.
§ 31.3 Definitions.
As used in this part:
"Accrued expenditures" mean the
charges incurred by the grantee
during a given period requiring the
provision of funds for: (1) Goods and
other tangible property received; (2)
services performed by employees, con-
tractors, subgrantees. subcontractors.
and other payees; and (3) other
amounts becoming owed under pro-
grams for which no current services or
performance is required, such as annu-
ities, insurance claims, and other bene-
fit payments.
"Accrued income" means the sum of:
(1) Earnings during a given period
from services performed by the grant-
ee and goods and other tangible prop-
erty delivered to purchasers, and (2)
amounts becoming owed to the grant-
ee for which no current services or
40 CFR Ch. I (7-1-88 Edition)
performance is required by the grant-
ee.
"Acquisition cost" cf an item of pur-
chased equipment means the net in-
voice unit price of the property includ-
ing the cost of modifications, attach-
ments, accessories, or auxiliary appa-
ratus necessary to make the property
usable for the purpose for which it
was acquired. Other charges such as
the cost ot installation, transportation
taxes, duty or protective in-transit in!
surance. shall be included or excluded
from the unit acquisition cost in ac-
cordance with the grantee's regular ac-
counting practices.
"Administrative" requirements mean
those matters common to grants in
general, such as financial manage-
ment, kinds and frequency of reports
and retention of records. These are
distinguished from "programmatic"
requirements, which concern matters
that can be treated only on a program-
by-program or grant-by-grant basis,
such as kinds of activities that can be
supported by grants under a particular
program.
"Awarding agency" means (1) with
respect to a grant, the Federal agency,
and (2) with respect to a subgrant. the
party that awarded the subgrant.
"Cash contributions" means the
grantee's cash outlay, including the
outlay of money contributed to the
grantee or subgrantee by other public
agencies and institutions, and private
organizations and individuals. When
authorized by Federal legislation, Fed-
eral funds received from other assist-
ance agreements may be considered ai
grantee or subgrantee cash contribu-
tions.
"Contract" means (except as used in
the definitions for "grant" and "sub-
grant" in this section and except
where qualified by "Federal") a pro-
curement contract under a grant or
subgrant. and means a procurement
subcontract under a contract.
"Cost sharing or matching" meani
the value of the third party In-kind
contributions and the portion of the
costs of a federally assisted project or
program not borne by the Federal
Government.
"Cost-type contract" means a con-
tract or subcontract under a grant In
which the contractor or subcontractor
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Environmental Protection Agency
is paid on the basis of the costs it
incurs, with or without a fee.
"Equipment" means tangible, nonex-
pendable, personal property having a
useful life of more than one year and
an acquisition cost of $5.000 or more
per unit. A grantee may use its own
definition of equipment provided that
such definition would at least include
all equipment defined above.
"Expenditure report" means: (1) For
nonconstruction grants, the SF-269
"Financial Status Report" (or other
equivalent report); (2) for construction
grants, the SF-271 "Outlay Report
and Request for Reimbursement" (or
other equivalent report).
"Federally recognized Indian tribal
government" means the governing
body or a governmental agency of any
Indian tribe, band, nation, or other or-
ganized group or community (includ-
ing any Native village as defined in
section 3 of the Alaska Native Claims
Settlement Act, 85 Stat 688) certified
by the Secretary of the Interior as eli-
gible for the special programs and
services provided by him through the
Bureau of Indian Affairs.
"Government" 'means a State or
local government or a federally recog-
nized Indian tribal government.
"Grant" means an award of finan-
cial assistance, Including cooperative
agreements, in the form of money, or
property In lieu of money, by the Fed-
eral Government to an eligible grant-
ee. The term does not include techni-
cal assistance which provides services
instead of money, or other assistance
in the form of revenue sharing, loans,
loan guarantees, interest subsidies, in-
surance, or direct appropriations. Also,
the term does not include assistance,
such as a fellowship or other lump
sum award, which the grantee is not
required to account for.
"Grantee" means the government to
which a grant is awarded and which is
accountable for the use of the funds
provided. The grantee is the entire
legal entity even if only a particular
component of the entity is designated
in the grant award document.
"Local government" means a county,
municipality, city, town, township,
local public authority (including any
public and' Indian housing agency
under the United States Housing Act
§31.3
of 1931) school district, special district.
intrastate district, council of govern-
ments (whether or not incorporated as
a nonprofit corporation under state
law), any other regional or interstate
government entity, or any agency or
instrumentality of a local government.
"Obligations" means the amounts of
orders placed, contracts and subgrants
awarded, goods and services received.
and similar transactions during a given
period that will require payment by
the grantee during the same or a
future period.
"OMB" means the U.S. Office of
Management and Budget.
"Outlays" (expenditures) mean
charges made to the project or pro-
gram. They may be reported on a cash
or accrual basis. For reports prepared
on a cash basis, outlays are the sum of
actual cash disbursement for direct
charges for goods and services, the
amount of indirect expense incurred.
the value of in-kind contributions ap-
plied, and the amount of cash ad-
vances and payments made to contrac-
tors and subgrantees. For reports pre-
pared on an accrued expenditure basis.
outlays are the sum of actual cash dis-
bursements, the amount of indirect
expense incurred, the value of inkind
contributions applied, and the new in-
crease (or decrease) in the amounts
owed by the grantee for goods and
other property received, for services
performed by employees, contractors,
subgrantees, subcontractors, and other
payees, and other amounts becoming
owed under programs for which no
current services or performance are re-
quired, such as annuities, insurance
claims, and other benefit payments.
"Percentage of completion method"
refers to a system under which pay-
ments are made for construction work
according to the percentage of comple-
tion of the work, rather than to the
grantee's cost incurred.
"Prior approval" means documenta-
tion evidencing consent prior to incur-
ring specific cost.
"Real property" means land, includ-
ing land improvements, structures and
appurtenances thereto, excluding mov-
able machinery and equipment.
"Share", when referring to the
awarding agency's portion of real
property, equipment or supplies.
359
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§31.4
40 CFR Ch. I (7-1-83 Editic
means the same percentage as the
awarding agency's portion of the ac-
quiring party's total costs under the
grant to which the acquisition costs
under the grant to which the acquisi-
tion cost of the property was charged.
Only costs are to be counted—not the
value of third-party in-kind contribu-
tions.
"State" means any of the several
States of the United States, the Dis-
trict of Columbia, the Commonwealth
of Puerto Rico, any territory or pos-
session of the United States, or any
agency or instrumentality of a State
exclusive of local governments. The
term does not include any public and
Indian housing agency under United
States Housing Act of 1937.
"Subgrant" means an award of fi-
nancial assistance in the form of
money, or property in lieu of money,
made under a grant by a grantee to an
eligible subgrantee. The term includes
financial assistance when provided by
contractual legal agreement, but does
not include procurement purchases,
nor does it include any form of assist-
ance which is excluded from the defi-
nition of "grant" in this part.
"Subgrantee" means the govern-
ment or other legal entity to which a
subgrant is awarded and which is ac-
countable to the grantee for the use of
the funds provided.
"Supplies" means all tangible per-
sonal property other than "equip-
ment" as defined in this part.
"Suspension" means depending on
the context, either (1) temporary
withdrawal of the authority to obli-
gate grant funds pending corrective
action by the grantee or subgrantee or
a decision to terminate the grant, or
(2)-an action taken by a suspending of-
ficial in accordance with agency regu-
lations implementing E.0.12549 to im-
mediately exclude a person from par-
ticipating in grant transactions for a
period, pending completion of an in-
vestigation and such legal or debar-
ment proceedings as may ensue.
"Termination" means permanent
withdrawal of the authority to obli-
gate previously-awarded grant funds
before that authority would otherwise
expire. It also means the voluntary re*
linquishment of that authority by the
grantee or subgrantee. "Termmatic
does not include:
(1) Withdrawal of funds awarded
the basis of the grantee's undere?
mate of the unobligated balance ir
prior period;
(2) Withdrawal of the unobliga-
balance as of the expiration of a grr.
(3) Refusal to extend a grant
award additional funds, to make
competing or noncompeting contn
ation, renewal, extension, or supc
mental award: or
(4) Voiding of a grant upon deter
nation that the award was obtair
fraudulently, or was otherwise \l\e-
cr invalid from inception.
"Terms of a grant or subgrar
mean all requirements of the grant
subgrant. whether in statute, regu
tions. or the award document.
"Third party in-kind contributor
mean property or services which ber
fit a federally assisted project or p
gram and which are contributed
non-Federal third parties withe
charge to the grantee, or a cost-ty
contractor under the grant agreeme:
"Unliquidated obligations" for z
ports prepared on a cash basis me:
the amount of obligations incurred ;
the grantee that has not been pa.
For reports prepared on an accru
expenditure basis, they represent t.
amount of obligations Incurred by t.
grantee for which an outlay has n
been recorded.
"Unobligated balance" means tl
portion of the funds authorized by tl
Federal agency that has not been ob
gated by the grantee and is dete
mined by deducting the cumulative o
ligations from the cumulative func
authorized.
§31.4 Applicability.
(a) General Subparts A-D of th.
part apply to all grants and subgran;
to governments, except where incoz
sistent with Federal statutes or wit
regulations authorized in accordant
with the exception provision of i 31.
or:
(1) Grants and subgrants to Stai
and local institutions of higher educs
tion or State and local hospitals.
(2) The block grants authorized te
the Omnibus Budget Reconciliatta
360
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Environmental Protection Agency
Act of 1981 (Community Services; Pre-
ventive Health and Health Services:
Alcohol. Drug Abuse, and Mental
Health Services; Maternal and Child
Health Services; Social Services: Low-
Income Home Energy Assistance:
States' Program of Community Devel-
opment Block Grants for Small Cities:
and Elementary and Secondary Educa-
tion other than programs adminis-
tered by the Secretary of Education
under Title V. Subtitle D. Chapter 2.
Section 583—the Secretary's discre-
tionary grant program) and Titles I-
III of the Job Training Partnership
Act of 1982 and under the Public
Health Services Act (Section 1921). Al-
cohol and Drug Abuse Treatment and
Rehabilitation Block Grant and Part
C of Title V. Mental Health Service
for the Homeless Block Grant).
(3) Entitlement grants to carry out
the following programs of the Social
Security Act:
(i) Aid to Needy Families with De-
pendent Children (Title IV-A of the
Act. not including the Work Incentive
Program (WIN) authorized by section
402(a)19(G); HHS grants for WIN are
subject to this part);
(ii) Child Support Enforcement and
Establishment of Paternity (Title IV-
D of the Act);
(iii) Foster Care and Adoption As-
sistance (Title IV-E of the Act);
(iv) Aid to the Aged. Blind, and Dis-
abled (Titles I. X. XIV. and XVI-
AABD of the Act); and
(v) Medical Assistance (Medicaid)
(Title XIX of the Act) not including
the State Medicaid Fraud Control pro-
gram authorized by section
1903(a)(6)(B).
(4) Entitlement grants under the fol-
lowing programs of The National
School Lunch Act:
(i) School Lunch (section 4 of the
Act).
(ii) Commodity Assistance (section 6
of the Act).
(iii) Special Meal Assistance (section
11 of the Act).
(iv) Summer Food Service for Chil-
dren (section 13 of the Act), and
(v) Child Care Food Program (sec-
tion 17 of the Act).
(5) Entitlement grants under the fol-
lowing programs of The Child Nutri-
tion Act of 1966:
§31.6
(i) Special Milk (section 3 of the
Act), and
(ii) School Breakfast (section 4 of
the Act).
(6) Entitlement grants for State Ad-
ministrative expenses under The Pood
Stamp Act of 1977 (section 16 of the
Act).
(7) A grant for an experimental.
pilot, or demonstration project that is
also supported by a grant listed in
paragraph (a)(3) of this section;
(8) Grant funds awarded under sub-
section 412(e) of the Immigration and
Nationality Act (8 U.S.C. 1522(e)) and
subsection 501(a) of the Refugee Edu-
cation Assistance Act of 1980 (Pub. L.
96-422. 94 Stat. 1809). for cash assist-
ance, medical assistance, and supple-
mental security income benefits to ref-
ugees and entrants and the adminis-
trative costs of providing the assist-
ance and benefits;
(9) Grants to local education agen-
cies under 20 U.S.C. 236 through 241-
l(a), and 242 through 244 (portions of
the Impact Aid program), except for
20 U.S.C. 238(d)(2)(c) and 240(f) (Enti-
tlement Increase for Handicapped
Children); and
(10) Payments under the Veterans
Administration's State Home Per
Diem Program (38 U.S.C. 641(a)).
(b) Entitlement programs. Entitle-
ment programs enumerated above in
§ 31.4(a) (3) through (8) are subject to
Subpart E.
§ 31.5 Effect on other issuances.
All other grants administration pro-
visions of codified program regula-
tions, program manuals, handbooks
and other nonregulatory materials
which are inconsistent with this pan
are superseded, except to the extent
they are required by statute, or au-
thorized in accordance with the excep-
tion provision in § 31.6.
§ 31.6 Additions and exceptions
(a) For classes of grants and grant-
ees subject to this part. Federal agen-
cies may not impose additional admin-
istrative requirements except in codi-
fied regulations published in the FED-
ERAL REGISTER.
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§31.10
(b) Exceptions for classes of grants
or grantees may be authorized only by
OMB.
(c) Exceptions on a case-by-case
basis and for subgrantees may be au-
thorized by the affected Federal agen-
cies.
(1) In the Environmental Protection
Agency ..the Director. Grants Adminis-
tration Division, is authorized to grant
the exceptions.
(d) The EPA Director is also author-
ized to approve exceptions, on a class
or an individual case basis, to EPA
program—specific assistance regula-
tions other than those which imple-
ment statutory and executive order re-
quirements.
[53 FR 8068 and 8087. Mar. 1L. 1988. and
amended at 53 FR 8075. Mar. 11. 1988]
EFFECTIVE DATE NOTE: At 53 FR 8075, Mar.
11. 1988. § 31.6 (cxi) and (d) were added, ef-
fective October 1. 1988.
Subpart B— Pro-Award Requirements
§ 31.10 Forma for applying for grants.
(a) Scope. (1) This section prescribes
forms and instructions to be used by
governmental organizations (except
hospitals and institutions of higher
education operated by a government)
in applying for grants. This section is
not applicable, however, to formula
grant programs which do not require
applicants to apply for funds on a
project basis.
(2) This section applies only to appli-
cations to Federal agencies for grants,
and is not required to be applied by
grantees in dealing with applicants for
subgrants. However, grantees are en-
couraged to avoid more detailed or
burdensome application requirements
for subgrants.
(b) Authorized forms and instruc-
tions for governmental organizations.
(1) In applying for grants, applicants
shall only use standard application
forms or those prescribed by the
granting agency with the approval of
OMB under the Paperwork Reduction
Act of 1980.
(2) Applicants are not required to
submit more than the original and two
copies of preapplications or applica-
tions.
40 CFR Ch. I (7-1-88 Edition)
(3) Applicants must follow all appli-
cable instructions that bear OMB
clearance numbers. Federal agencies
may specify and describe the pro-
grams, functions, or activities that will
be used to plan, budget, and evaluate
the work under a grant. Other supple-
mentary instructions may be issued
only with the approval of OMB to the
extent required under the Paperwork
Reduction Act of 1980. For any stand-
ard form, except the SF-424 facesheet.
Federal agencies may shade out or in-
struct the applicant to disregard any
line item that is not needed.
(4) When a grantee applies for addi-
tional funding
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(3) Develop its own language to the
extent permitted by law.
(d) Amendments. A State will amend
a plan whenever necessary to reflect:
(1) New or revised Federal statutes or
regulations or (2) a material change in
any State law. organization, policy, or
State agency operation. The State will
obtain approval for the amendment
and its effective date but need submit
for approval only the amended por-
tions of the plan.
§31.12 Special grant or subgrant condi-
tions for "high-risk" grantees.
(a) A grantee or subgrantee may be
considered "high risk" if an awarding
agency determines that a grantee or
subgrantee:
(1) Has a history of unsatisfactory
performance, or
(2) Is not financially stable, or
(3) Has a management system which
does not meet the management stand-
ards set forth in this part, or
(4) Has not conformed to terms and
conditions of previous awards, or
(5) Is otherwise not responsible; and
if the awarding agency determines
that an award will be made, special
conditions and/or restrictions shall
correspond to the high risk condition
and shall be included in the award.
(b) Special conditions or restrictions
may include:
(1) Payment on a reimbursement
basis;
(2) Withholding authority to pro-
ceed to the next phase until receipt of
evidence of acceptable performance
within a given funding period;
(3) Requiring additional, more de-
tailed financial reports;
(4) Additional project monitoring;
(5) Requiring the grante or subgran-
tee to obtain technical or management
assistance; or
(6) Establishing additional prior ap-
provals.
(c) If an awarding agency decides to
impose such conditions, the awarding
official will notify the grantee or sub-
grantee as early as possible, in writing,
of:
(1) The nature of the special condi-
tions/restrictions;
(2) The reason(s) for imposing them;
(3) The corrective actions which
must be taken before they will be re-
moved and the tune allowed for com-
pleting the corrective actions and
(4) The method of requesting recon-
sideration of the conditions/ restric-
tions imposed.
§ 31.13 Principal environmental statutory
provisions applicable to EPA assist-
ance awards.
Grantees shall comply with all appli-
cable Federal laws including:
(a) Section 306 of the Clean Air Act,
(42 U.S.C. 7606).
(b) Section 508 of the Federal Water
Pollution Control Act. as amended, (33
U.S.C. 1368).
(c) Section 1424(e) of the Safe
Drinking Water Act, (42 U.S.C. 300h-
[53 PR 8075. Mar. 11, 1988]
EFFECTIVE DATE NOTE: At 53 FR 8075. Mar.
11. 1988. §31.13 was added, effective Octo-
ber 1. 1988.
Subpart C — Post-Award Requirements
FINANCIAL ADMINISTRATION
§31.20 Standards for financial manage-
ment systems.
(a) A State must expand and ac-
count for grant funds in accordance
with State laws and procedures for ex-
pending and accounting for its own
funds. Fiscal control and accounting
procedures of the State, as well as its
subgrantees and cost-type contractors,
must be sufficient to—
(1) Permit preparation of reports re-
quired by this part and the statutes
authorizing the grant, and
(2) Permit the tracing of funds to a
level of expenditures adequate to es-
tablish that such funds have not been
used in violation of the restrictions
and prohibitions of applicable stat-
utes.
(b) The financial management sys-
tems of other grantees and subgran-
tees must meet the following stand-
ards:
(1) Financial reporting. Accurate,
current, and complete disclosure of
the financial results of financially as-
sisted activities must be made in ac-
cordance with the financial reporting
requirements of the grant or subgrant.
363
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§ 31.21
40 CFR Ch. I (7-1-33 Edition)
(2) Accounting records. Grantees
and subgrantees must maintain
records which adequately identify the
source and application of funds pro-
vided for financially-assisted activities.
These records must contain informa-
tion pertaining to grant or subgrant
awards and authorizations, obliga-
tions, unobligated balances, assets, li-
abilities, outlays or expenditures, and
income.
(3) Internal control Effective con-
trol and accountability must be main-
tained for all grant and subgrant cash,
real and personal property, and other
assets. Grantees and subgrantees must
adequately safeguard all such proper-
ty and must assure that it is used
solely for authorized purposes.
(4) Budget control Actual expendi-
tures or outlays must be compared
with budgeted amounts for each grant
or subgrant. Financial information
must be related to performance or pro-
ductivity data, including the develop-
ment of unit cost information when-
ever appropriate or specifically re-
quired in the grant or subgrant agree-
ment. If unit cost data are required.
estimates based on available documen-
tation will be accepted whenever possi-
ble.
(5) Allowable cost. Applicable OMB
cost principles, agency program regu-
lations, and the terms of grant and
subgrant agreements will be followed
in determining the reasonableness, al-
lowability. and allocability of costs.
(6) Source documentation. Account-
ing records must be supported by such
source documentation as cancelled
checks, paid bills, payrolls, time and
attendance records, contract and sub-
grant award documents, etc.
(7) Cash management Procedures
for minimizing the time elapsing be-
tween the transfer of funds from the
U.S. Treasury and disbursement by
grantees and subgrantees must be fol-
lowed whenever advance payment pro-
cedures are used. Grantees must estab-
lish reasonable procedures to ensure
the receipt of reports on subgrantees'
cash balances and cash disbursements
in sufficient time to enable them to
prepare complete and accurate cash
transactions reports to the awarding
agency. When advances are made by
letter-of-credit or electronic transfer
of funds methods, the grantee must
make drawdowns as close as possible
to the time of making disbursements.
Grantees must monitor cash draw-
downs by their subgrantees to assure
that they conform substantially to the
same standards of timing and amount
as apply to advances to the grantees.
(c) An awarding agency may review
the adequacy of the financial manage-
ment system of any applicant for fi-
nancial assistance as part of a
preaward review or at any time subse-
quent to award.
§ 31.21 Payment.
(a) Scope. This section prescribes the
basic standard and the methods under
which a Federal agency will make pay-
ments to grantees, and grantees will
make payments to subgrantees and
contractors.
(b) Basic standard. Methods and
procedures for payment shall mini-
mize the time elapsing between the
transfer of funds and disbursement by
the grantee or subgrantee. in accord-
ance with Treasury regulations at 31
CFR Part 205.
(c) Advances. Grantees and subgran-
tees shall be paid in advance, provided
they maintain or demonstrate the will-
ingness and ability to maintain proce-
dures to minimize the time elapsing
between the transfer of the funds and
their disbursement by the grantee or
subgrantee.
(d) Reimbursement. Reimbursement
shall be the preferred method when
the requirements in paragraph (c) of
this section" are not met. Grantees and
subgrantees may also be paid by reim-
bursement for any construction grant.
Except as otherwise specified in regu-
lation, Federal agencies shall not use
the percentage of completion method
to pay construction grants. The grant-
ee or subgrantee may use that method
to pay its construction contractor, and
if it does, the awarding agency's pay-
ments to the grantee or subgrantee
will be based on the grantee's or sub-
grantee's actual rate of disbursement.
(e) Working capital advances. If a
grantee cannot meet the criteria for
advance payments described in para-
graph (c) of this section, and the Fed-
eral agency has determined that reiin-
364
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Environmental Protection Agency
bursement is not feasible because the
grantee lacks sufficient working cap-
ital, the awarding agency may provide
cash or a working capital advance
basis. Under this procedure the award-
Ing agency shall advance cash to the
grantee to cover its estimated dis-
bursement needs for an initial period
generally geared to the grantee's dis-
bursing cycle. Thereafter, the award-
ing agency shall reimburse the grantee
for its actual cash disbursements. The
working capital advance method of
payment shall not be used by grantees
or subgrantees if the reason for using
such method is the unwillingness or
inability of the grantee to provide
timely advances to the subgrantee to
meet the subgrantee's actual cash dis-
bursements.
(f) Effect of program income, re-
funds, and audit recoveries on pay-
ment. (1) Grantees and subgrantees
shall disburse repayments to and in-
terest earned on a revolving fund
before requesting additional cash pay-
ments for the same activity.
(2) Except as provided in paragraph
(f)(l) of this section, grantees and sub-
grantees shall disburse program
income, rebates, refunds, contract set-
tlements, audit recoveries and interest
earned on such funds before request-
ing additional cash payments.
(g) Withholding payments. (1)
Unless otherwise required by Federal
statute, awarding agencies shall not
withhold payments for proper charges
incurred by grantees or subgrantees
unless—
(i) The grantee or subgrantee has
failed to comply with grant award con-
ditions or
(ii) The grantee or subgrantee is in-
debted to the United States.
(2) Cash withheld for failure to
comply with grant award condition.
but without suspension of the grant.
shall be released to the grantee upon
subsequent compliance. When a grant
is suspended, payment adjustments
will be made in accordance with
§ 31.43(0.
(3) A Federal agency shall not make
payment to grantees for amounts that
are withheld by grantees or subgran-
tees from payment to contractors to
assure satisfactory completion of
work. Payments shall be made by the
§31.M
Federal agency when the grantees or
subgrantees actually disburse the
withheld funds to the contractors or
to escrow accounts established to
assure satisfactory completion of
work.
(h) Cash depositories. (1) Consistent
with the national goal of expanding
the opportunities for minority busi-
ness enterprises, grantees and sub-
grantees are encouraged to use minori-
ty banks (a bank which is owned at
least 50 percent by minority group
members). A list of minority owned
banks can be obtained from the Mi-
nority Business Development Agency.
Department of Commerce, Washing-
ton. DC 20230.
(2) A grantee or subgrantee shall
maintain a separate bank account only
when required by Federal-State agree-
ment.
(i) Interest earned on advances.
Except for interest earned on advances
of funds exempt under the Intergov-
ernmental Cooperation Act (31 U.S.C.
6501 et seq.) and the Indian Self-De-
termination Act (23 U.S.C. 450), grant-
ees and subgrantees shall promptly,
but at least quarterly, remit interest
earned on advances to the Federal
agency. The grantee or subgrantee
may keep interest amounts up to $100
per year for administrative expenses.
§ 31.22 Allowable costs.
(a) Limitation on use of funds.
Grant funds may be used only for:
(1) The allowable costs of the grant-
ees, subgrantees and cost-type contrac-
tors, including allowable costs in the
form of payments to fixed-price con-
tractors; and
(2) Reasonable fees or profit to cost-
type contractors but not any fee or
profit (or other increment above al-
lowable costs) to the grantee or sub-
grantee.
(b) Applicable cost principles. For
each kind of organization, there is a
set of Federal principles for determin-
ing allowable costs. Allowable costs
will be determined in accordance with
the cost principles applicable to the
organization incurring the costs. The
following chart lists the kinds of orga-
nizations and the applicable cost prin-
ciples.
365
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9-41.2,*
HO V.I-R v.n. i i* -i-oo
For me costs oi i
State, local or Indian tnbal
government
Pnvate nonprofit organization
other than an (1) institution
o( higher education. (2)
hospital, or (3) organization
named in OMB Circular A-
122 as not subject to that
circular
Educational institutions
For-proM organization other
than a hospital and an or-
ganization named in OBM
Circular A-122 as not sub-
ject to that circular
Use the principles in—
OMB Circular A-87
OBM Circular A-122
OMB Circular A-21
48 CFR Pan 31 Contract
Cost Principles and Proce-
dures or uniform cost ac-
counting standards that
comply with cost principles
acceptable to the Federal
agency
§ 31.23 Period fo availability of funds.
(a) General. Where a funding period
is specified, a grantee may charge to
the award only costs resulting from
obligations of the funding period
unless carryover of unobligated bal-
ances is permitted, in which case the
carryover balances may be charged for
costs resulting from obligations of the
subsequent funding period.
(b) Liquidation of obligations. A
grantee must liquidate all obligations
incurred under the award not later
than 90 days after the end of the
funding period (or as specified in a
program regulation) to coincide with
the submission of the annual Finan-
cial Status Report (SP-269). The Fed-
eral agency may extend this deadline
at the request of the grantee.
§ 31.24 Matching or cost sharing.
(a) Basic rule: Costs and contribu-
tions acceptable. With the qualifica-
tions and exceptions listed in para-
graph (b) of this section, a matching
or cost sharing requirement may be
satisfied by either or both of the fol-
lowing:
(1) Allowable costs incurred by the
grantee, subgrantee or a cost-type con-
tractor under the assistance agree-
ment. This includes allowable costs
borne by non-Federal grants or by
others cash donations from non-Feder-
al third parties.
(2) The value of third party in-kind
contributions applicable to the period
to which the cost sharing or matching
requirements applies.
(b) Qualifications and exceptions—
(1) Costs borne by other Federal grant
agreements. Except as provided by
Federal statute, a cost sharing or
matching requirement may not be met
by costs borne by another Federal
grant. This prohibition does not apply
to income earned by a grantee or sub-
grantee from a contract awarded
under another Federal grant.
(2) General revenue sharing. For the
purpose of this section, general reve-
nue sharing funds distributed under
31 U.S.C. 6702 are not considered Fed-
eral grant funds.
(3) Cost or contributions counted to-
wards other Federal costs-sharing re-
quirements. Neither costs nor the
values of third party in-kind contribu-
tions may count towards satisfying a
cost sharing or matching requirement
of a grant agreement if they have
been or will be counted towards satis-
fying a cost sharing or matching re-
quirement of another Federal grant
agreement, a Federal procurement
contract, or any other award of Feder-
al funds.
(4) Costs financed by program
income. Costs financed by program
income, as defined in § 31.25, shall not
count towards satisfying a cost sharing
or matching requirement unless they
are expressly permitted in the terms
of the assistance agreement. (This use
of general program income is de-
scribed in 5 31.25(g).)
(5) Services or property financed by
income earned by contractors. Con-
tractors under a grant may earn
income from the activities carried out
under the contract in addition to the
amounts earned from the party award-
ing the contract. No costs of services
or property supported by this income
may count toward satisfying a cost
sharing or matching requirement
unless other provisions of the grant
agreement expressly permit this kind
of income to be used to meet the re-
quirement.
(6) Records. Costs and third party
in-kind contributions counting towards
satisfying a cost sharing or matching
requirement must be verifiable from
the records of grantees and subgrantee
or cost-type contractors. These records
366
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Environmental Protection Agency
must show how the value placed on
third party in-kind contributions was
derived. To the extent feasible, volun-
teer services will be supported by the
same methods that the organization
uses to support the allocabllity of reg-
ular personnel costs.
(7) Special standards for third party
in-kind contributions, (i) Third party
in-kind contributions count towards
satisfying a cost sharing or matching
requirement only where, if the party
receiving the contributions were to
pay for them, the payments would be
allowable costs.
(ii)xSome third party in-kind contri-
butions, are goods and services that, if
the grantee, subgrantee, or contractor
receiving the contribution had to pay
for them, the payments would have
been an indirect costs. Costs sharing
or matching credit for such contribu-
tions shall be given only if the grant-
ee, subgrantee, or contractor has es-
tablished, along with its regular indi-
rect cost rate, a special rate for allo-
cating to individual projects or pro-
grams the value of the contributions.
(iii) A third party in-kind contribu-
tion to a fixed-price contract may
count towards satisfying-a cost sharing
or matching requirement only if it re-
sults in:
(A) An increase in the services or
property provided under the contract
(without additional cost to the grantee
or subgrantee) or
(B) A cost savings to the grantee or
subgrantee.
(iv) The values placed on third party
in-kind contributions for cost sharing
or matching purposes will conform to
the rules in the succeeding sections of
this part. If a third party in-kind con-
tribution is a type not treated in those
sections, the value placed upon it shall
be fair and reasonable.
(c) Valuation of donated services—
(1) Volunteer services. Unpaid services
provided to a grantee or subgrantee by
individuals will be valued at rates con-
sistent with those ordinarily paid for
similar work in the grantee's or sub-
grantee's organization. If the grantee
or subgrantee does not have employ-
ees performing similar work, the rates
will be consistent with those ordinarily
paid by other employers for similar
work in the same labor market. In
§31.24
either case, a reasonable amount for
fringe benefits may be included in the
valuation.
(2) Employees of other organiza-
tions. When an employer other than a
grantee, subgrantee, or cost-type con-
tractor furnishes free of charge the
services of an employee in the employ-
ee's normal line of work, the services
will be valued at the employee's regu-
lar rate of pay exclusive of the em-
ployee's fringe benefits and overhead
costs. If the services are in a different
line of work, paragraph (c)(l) of this
section applies.
(d) Valuation of third party donated
supplies and loaned equipment or
space. (1) If a third party donates sup-
plies, the contribution will be valued
at the market value of the supplies at
the time of donation.
(2) If a third party donates the use
of equipment or space in a building
but retains title, the contribution will
be valued at the fair rental rate of the
equipment or space.
(e) Valuation of third party donated
equipment, buildings, and land. If a
third party donates equipment, build-
ings, or land, and title passes to a
grantee or subgrantee. the treatment
of the donated property will depend
upon the purpose of the grant or sub-
grant, as follows:
(1) Awards for capital expenditures.
If the purpose of the grant or sub-
grant is to assist the grantee or sub-
grantee in the acquisition of property,
the market value of that property at
the time of donation may be counted
as cost sharing or matching.
(2) Other awards. If assisting in the
acquisition of property is not the pur-
pose of the grant or subgrant, para-
graphs (e)(2) (i) and (ii) of this section
apply:
(i) If approval is obtained from the
awarding agency, the market value at
the time of donation of the donated
equipment or buildings and the fair
rental rate of the donated land may be
counted as cost sharing or matching.
In the case of a subgrant. the terms of
the grant agreement may require that
the approval be obtained from the
Federal agency as well as the grantee.
In all cases, the approval may be given
only if a purchase of the equipment or
rental of the land would be approved
367
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$31.25
as an allowable direct cost. If any part
of the donated property was acquired
with Federal funds, only the non-fed-
eral share of the property may be
counted as cost-sharing or matching.
(11) If approval is not obtained under
paragraph (eX2XD of this -section, no
amount may be counted for donated
land, and only depreciation or use al-
lowances may be counted for donated
equipment and buildings. The depre-
ciation or use allowances for this prop-
erty are not treated as third party in-
kind contributions. Instead, they are
treated as costs incurred by the grant-
ee or subgrantee. They are computed
and allocated (usually as indirect
costs) in accordance with the cost
principles specified in 8—22, in the
same way as depreciation or use allow-
ances for purchased equipment and
buildings. The amount of depreciation
or usCv allowances for donated equip-
ment toad buildings is based on .the
property's market value at the time it
was donated.
(f) VUtuttion of grantee or tvbgran-
tee donated real property for construc-
tion/acquisition. If a grantee or sub-
grantee donates real property for a
construction or facilities acquisition
project, the current market value of
that property may be counted as cost
sharing or matching. If any part of
the donated property was acquired
with Federal funds, only the non-fed-
eral share of the property may be
counted as cost sharing or matching.
(g) Appraisal of real property. In
some cases under paragraphs (d), (e)
and (f) of this section, it will be neces-
sary to establish the market value of
land or a building or the fair rental
rate of land or of space in a building.
In these cases, the Federal agency
may require the market value or fair
rental value be set by an independent
appraiser, and that the value or rate
be certified by the grantee. This re-
quirement will also be imposed by the
grantee on subgrantees.
§ 31.25 Program income.
(a) QeneraL Grantees are encour-
aged to earn income to defray pro-
gram costs. Program Income includes
income from fees for services per-
formed, from the use or rental of real
or personal property acquired with
40 CFR Qi. I (7-1-88 fcdit.c
grant funds, from the sale of comrm
ities or items fabricated under a gra
agreement, and from payments
principal and interest on loans ma
with grant funds. Except as otherw
provided in regulations of the Fedei
agency, program income does not
elude interest on grant funds, rebat
credits, discounts, refunds, etc. and
terest earned on any of them.
(b) Definition of program incor,
Program income means gross Incoi
received by the grantee or subgrant
directly generated by a grant suppo
ed activity, or earned only as a resi
of the grant agreement during t
grant period. "During the gra
period" is the time between the eff*
tive date of the award and the end!
date of the award reflected in the fir
financial report.
(c) Cost of generating progn
income. If authorized by Federal rei
latlons or the grant agreement, co:
incident to the generation of progrs
income may be deducted from grc
income to determine program incon
(d) Governmental revenues. Tax
special assessments, levies, fines, a.
other such revenues raised by a grai
ee or subgrantee are not progn
income unless the revenues are spec!
cally identified in the grant agreeme
or Federal agency regulations as pi
gram income.
(e) Royalties. Income from royalt
and license fees for copyrighted ma
rial, patents, and inventions develop
by a grantee or subgrantee is progn
income only if the revenues are spec
ically identified in the grant agr«
ment or Federal agency regulations
program income. (See 8 31.34.)
(f) Property. Proceeds from the si
of real property or equipment will
handled in accordance with the i
quirements of 88 31.31 and 31.32.
(g) Use of program income. Progrc
income shall be deducted from outla
which may be both Federal and nc
Federal as described below, unless t
Federal agency regulations or t
grant agreement specify another alb
native (or a combination of the alt
natives). In specifying alternatives, t
Federal agency may distinguish 1
tween income earned by the grant
and income earned by subgrantees &
between the«,«ouroes, kinds.
368
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Environmental Protection Agency
amounts of Income. When Federal
agencies authorize the alternatives In
paragraphs (g) (2) and (3) of this sec-
tion, program Income in excess of any
limits stipulated shall also be deducted
from outlays.
(1) Deduction. Ordinarily program
income shall be deducted from total
allowable costs to determine the net
allowable costs. Program income shall
be used for current costs unless the
Federal agency authorizes otherwise.
Program income which the grantee
did not anticipate at the time of the
award shall be used to reduce the Fed-
eral agency and grantee contributions
rather than to increase the funds com-
mitted to the project.
(2) Addition. When authorized, pro-
gram income may be added to the
funds committed to the grant agree-
ment by the Federal agency and the
grantee. The program income shall be
used for the purposes and under the
conditions of the grant agreement.
(3) Cott sharing or matching. When
authorized, program income may be
used to meet the cost sharing or
matching requirement of the grant
agreement. The amount of the Federal
grant award remains the same.
(h) Income after the award period,
There are no Federal requirements
governing the disposition of program
Income earned after the end of the
award period (i.e., until the ending
date of the final financial report, see
paragraph (a) of this section), unless
the terms of the agreement or the
Federal agency regulations provide
otherwise.
931.2*
audit
(a) Batie rate. Grantees and sub-
grantees are responsible for obtaining
andtta tn accordance with the Single
Audit Art of 1994 (31 U.S.C 7501-7)
and Federal agency implementing reg-
ulations. The audits shall be made by
an Independent auditor In accordance
with generally accepted government
auditing standards covering fin*nri«A
and compliance audits.
tb)- Subgrantee*. State or local gov-
ernments, as those terms are defined
for purposes of the Single Audit Act.
that receive Federal financial assist-
ance and provide $25,000 or more of it
In a fiscal year to a subgrantee shall:
§31.50
(1) Determine whether State or local
subgrantees have met the audit re-
quirements of the Act and whether
subgrantees covered by OMB Circular
A-110. "Uniform Requirements for
Grants and Other Agreements with
Institutions of Higher Education. Hos-
pitals and Other Nonprofit Organiza-
tions" have met the audit require-
ment. Commercial contractors (private
forprofit and private and governmen-
tal organizations) providing goods and
services to State and local govern-
ments are not required to have a
single audit performed. State and local
govenments should use their own pro-
cedures to ensure that the contractor
has complied with laws and regula-
tions affecting the expenditure of Fed-
eral funds:
(2) Determine whether the subgran-
tee spent Federal assistance funds pro-
vided in accordance with applicable
laws and regulations. This may be ac-
complished by reviewing an audit of
the subgrantee made in accordance
with the Act. Circular A-110. or
through other means (e.g., program
reviews) if the subgrantee has not had
such an audit;
(3) Ensure that appropriate correc-
tive action is taken within six months
after receipt of the audit report In in-
stance of noncompliance with Federal
laws and regulations;
(4) Consider whether subgrantee
audits necessitate adjustment of the
grantee's own records; and
(5) Require each subgrantee to
permit independent auditors to have
access to the records and financial
statement*.
(c) Auditor selection. In arranging
for audit services, i 31.36 shall be fol-
lowed,
CHARGES, PROPERTY, AND SUBAWARDS
511 JO Change*.
(•) General Grantees and subgran-
teea are permitted to rebudget within
the approved direct cost budget to
meet unanticipated requirements and
m^y make limited program changes to
the approved project. However, unless
waived by the awarding agency, cer-
tain types of post-award changes in
budgets and projects shall require the
389
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§31.31
40 CFR Ch. I (7-1-88 Edition)
prior written approval of the awarding
agency.
(b) Relation to cost principles. The
applicable cost principles (see §31.22)
contain requirements for prior approv-
al of certain types of costs. Except
where waived, those requirements
apply to all grants and subgrants even
if paragraphs (c) through (f) of this
section do not.
(c) Budget changes. (1) Nonconstruc-
tion projects. Except as stated in other
regulations or an award document,
grantees or subgrantees shall obtain
the prior approval of the awarding
agency whenever any of the following
changes is anticipated under a noncon-
struction award:
(i) Any revision which would result
in the need for additional funding.
(ii) Unless waived by the awarding
agency, cumulative transfers among
direct cost categories, or. if applicable.
among separately budgeted programs,
projects, functions, or activities which
exceed or are expected to exceed ten
percent of the current total approved
budget, whenever the awarding agen-
cy's share exceeds $100.000.
(iii) Transfer of funds allotted for
training allowances (i.e., from direct
payments to trainees to other expense
categories).
(2) Construction projects. Grantees
and subgrantees shall obtain prior
written approval for any budget revi-
sion which would result in the need
for additional funds.
(3) Combined construction and non-
construction projects. When a grant or
subgrant provides funding for both
construction and nonconstruction ac-
tivities, the grantee or subgrantee
must obtain prior written approval
from the awarding agency before
making any fund or budget transfer
from nonconstruction to construction
or vice versa.
(d) Programmatic changes. Grantees
or subgrantees must obtain the prior
approval of the awarding agency
whenever any of the following actions
is anticipated:
(1) Any revision of the scope or ob-
jectives of the project (regardless of
whether there is an associated budget
revision requiring prior approval).
(2) Need to extend the period of
availability of funds.
(3) Changes in key persons in cases
where specified in an application or a
grant award. In research projects, a
change in the project director or prin-
cipal investigator shall always require
approval unless waived by the award-
ing agency.
(4) Under nonconstruction projects.
contracting out. subgranting (if au-
thorized by law) or otherwise obtain-
ing the services of a third party to per-
form activities which are central to
the purposes of the award. This ap-
proval requirement is in addition to
the approval requirements of § 31.36
but does not apply to the procurement
of equipment, supplies, and general
support services.
(e) Additional prior approval re-
quirements. The awarding agency may
not require prior approval for any
budget revision which is not described
in paragraph (c) of this section.
(f) Requesting prior approval (DA
request for prior approval of any
budget revision will be in the same
budget formal the grantee used in its
application and shall be accompanied
by a narrative justification for the
proposed revision.
(2) A request for a prior approval
under the applicable Federal cost prin-
ciples (see § 31.22) may be made by
letter.
(3) A request by a subgrantee for
prior approval will be addressed in
writing to the grantee. The grantee
will promptly review such request and
shall approve or disapprove the re-
quest in writing. A grantee will not ap-
prove any budget or project revision
which is inconsistent with the purpose
or terms and conditions of the Federal
grant to the grantee. If the revision.
requested by the subgrantee would
result in a change to the grantee's ap-
proved project which requires Federal
prior approval, the grantee will obtain
the Federal agency's approval before
approving the subgrantee's request.
§31.31 Real property.
(a) Title. Subject to the obligations
and conditions set forth in this sec-
tion, title to real property acquired
under a grant or subgrant will vest
upon acquisition In the grantee or sub-
grantee respectively.
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Environmental Protection Agency
(b) Use. Except as otherwise provid-
ed by Federal statutes, real property
will be used for the originally author-
ized purposes as long as needed for
that purposes, and the grantee or sub-
grantee shall not dispose of or encum-
ber its title or other interests.
(c) Disposition. When real property
is no longer needed for the originally
authorized purpose, the grantee or
subgrantee will request disposition in-
structions from the awarding agency.
The instructions will provide for one
of the following alternatives:
(1) Retention of title. Retain title
after compensating the awarding
agency. The amount paid to the
awarding agency will be computed by
applying the awarding agency's per-
centage of participation in the cost of
the original purchase to the fair
market value of the property. Howev-
er, in those situations where a grantee
or subgrantee is disposing of real prop-
erty acquired with grant funds and ac-
quiring replacement real property
under the same program, the net pro-
ceeds from the disposition may be
used as an offset to the cost of the re-
placement property.
(2) Sale of property. Sell the proper-
ty and compensate the awarding
agency. The amount due to the award-
ing agency will be calculated by apply-
ing the awarding agency's percentage
of participation in the cost of the
original purchase to the proceeds of
the sale after deduction of any actual
and reasonable selling and fixing-up
expenses. If the grant is still active,
the net proceeds from sale may be
offset against the original cost of the
property. When a grantee or subgran-
tee is directed to sell property, sales
procedures shall be followed that pro-
vide for competition to the extent
practicable and result in the highest
possible return.
(3) Transfer of title. Transfer title to
the awarding agency or to a third-
party designated/approved by the
awarding agency. The grantee or sub-
grantee shall be paid an amount calcu-
lated by applying the grantee or sub-
grantee's percentage of participation
in the purchase of the real property to
the current fair market value of the
property.
§31.32
§31.32 Equipment.
(a) Title. Subject to the obligations
and conditions set forth in this sec-
tion, title to equipment acquired under
a grant or subgrant will vest upon ac-
quisition in the grantee or subgrantee
respectively.
(b) States. A State will use. manage.
and dispose of equipment acquired
under a grant by the State in accord-
ance with State laws and procedures.
Other grantees and subgrantees will
follow paragraphs (c) through (e) of
this section,
(c) Use. (1) Equipment shall be used
by the grantee or subgrantee in the
program or project for which it was
acquired as long as needed, whether or
not the project or program continues
to be supported by Federal funds.
When no longer needed for the origi-
nal program or project, the equipment
may be used in other activities cur-
rently or previously supported by a
Federal agency.
(2) The grantee or subgrantee shall
also make equipment available for use
on other projects or programs current-
ly or previously supported by the Fed-
eral Government, providing such use
will not interfere with the work on the
projects or program for which it was
originally acquired. First preference
for other use shall be given to other
programs or projects supported by the
awarding agency. User fees should be
considered if appropriate.
(3) Notwithstanding the encourage-
ment in § 31.25(a) to earn program
income, the grantee or subgrantee
must not use equipment acquired with
grant funds to provide services for a
fee to compete unfairly with private
companies that provide equivalent
services, unless specifically permitted
or contemplated by Federal statute.
(4) When acquiring replacement
equipment, the grantee or subgrantee
may use the equipment to be replaced
as a trade-in or sell the property and
use the proceeds to offset the cost of
the replacement property, subject to
the approval of the awarding agency.
(d) Management requirements. Pro-
cedures for managing equipment (in-
cluding replacement equipment).
whether acquired in whole or in part
with grant funds, until disposition
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40 CFR Ch. I (7-1.88 Edition)
takes place will, as a minimum, meet
the following requirements:
(1) Property records must be main-
tained that include a description of
the property, a serial number or other
identification number, the source of
property, who holds title, the acquisi-
tion date, and cost of the property,
percentage of Federal participation in
the cost of the property, the location.
use and condition of the property, and
any ultimate disposition data includ-
ing the date of disposal and sale price
of the property.
(2) A physical inventory of the prop-
erty must be taken and the results rec-
onciled with the property records at
least once every two years.
(3) A control system must be devel-
oped to ensure adequate safeguards to
prevent loss, damage, or theft of the
property. Any loss, damage, or theft
shall be investigated.
(4) Adequate maintenance proce-
dures must be developed to keep the
property in good condition.
(5) If the grantee or subgrantee is
authorized or required to sell the
property, proper sales procedures
must be established to ensure the
highest possible return.
(e) Disposition. When original or re-
placement equipment acquired under
a grant or subgrant is no longer
needed for the original project or pro-
gram or for other activities currently
or previously supported by a Federal
agency, disposition of the equipment
will be made as follows:
(1) Items of equipment with a cur-
rent per-unit fair market value of less
than $5,000 may be retained, sold or
otherwise disposed of with no further
obligation to the awarding agency.
(2) Items of equipment with a cur-
rent per unit fair market value in
excess of $5,000 may be retained or
sold and the awarding agency shall
have a right to an amount calculated
by multiplying the current market
value or proceeds from sale by the
awarding agency's share of the equip-
ment.
(3) In cases where a grantee or sub-
grantee fails to take appropriate dispo-
sition actions, the awarding agency
may direct the grantee or subgrantee
to take excess and disposition actions.
(f) Federal equipment. In the event a
grantee or subgrantee is provided fed-
erally-owned equipment:
(1) Title will remain vested in the
Federal Government.
(2) Grantees or sub gran tees will
manage the equipment in accordance
with Federal agency rules and proce-
dures, and submit an annual inventory
listing.
(3) When the equipment is no longer
needed, the grantee or subgrantee will
request disposition instructions from
the Federal agency.
(g) Right to transfer title. The Feder-
al awarding agency may reserve the
right to transfer title to the Federal
Government or a third part named by
the awarding agency when such a
third party is otherwise eligible under
existing statutes. Such transfers shall
be subject to the following standards:
(1) The property shall be identified
in the grant or otherwise made known
to the grantee in writing.
(2) The Federal awarding agency
shall issue disposition instruction
within 120 calendar days after the end
of the Federal support of the project
for which it was acquired. If the Fed-
eral awarding agency fails to issue dis-
position instructions within the 120
calendar-day period the grantee shall
follow 31.32(e).
(3) When title to equipment is trans-
ferred, the grantee shall be paid an
amount calculated by applying the
percentage of participation in the pur-
chase to the current fair market value
of the property.
§ 31.33 Supplies.
(a) Title. Title to supplies acquired
under a grant or subgrant will vest.
upon acquisition, in the grantee or
subgrantee respectively.
(b) Disposition. If there is a residual
inventory of unused supplies exceed-
ing $5,000 in total aggregate fair
market value upon termination or
completion of the award, and if the
supplies are not needed for any other
federally sponsored programs or
projects, the grantee or subgrantee
shall compensate the awarding agency
for its share.
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Environmental Protection Agency
§31.34 Copyrights.
The Federal awarding agency re-
serves a royalty-free, nonexclusive.
and irrevocable license to reproduce,
publish or otherwise use, and to au-
thorize others to use. for Federal Gov-
ernment purposes:
(a) The copyright in any work devel-
oped under a grant, subgrant, or con-
tract under a grant or subgrant; and
(b) Any rights of copyright to which
a grantee, subgrantee or a contractor
purchases ownership with grant sup-
port.
§ 31.35 Subawards to debarred and sus-
pended parties.
Grantees and subgrantees must not
make any award or permit any award
(subgrant or contract) at any tier to
any party which is debarred or sus-
pended or is otherwise excluded from
or ineligible for participation in Feder-
al assistance programs under Execu-
tive Order 12549, "Debarment and
Suspension."
§ 31.36 Procurement
fol States. When procuring property
and services under a grant, a State will
follow the same policies and proce-
dures it uses for procurements from its
non-Federal funds. The State will
ensure that every purchase order or
other contract includes any clauses re-
quired by Federal statutes and execu-
tive orders and their implementing
regulations. Other grantees and sub-
grantees will follow paragraphs (b)
through (i) in this section.
(b) Procurement standards. (1)
Grantees and subgrantees will use
their own procurement procedures
which reflect applicable State and
local laws and regulations, provided
that the procurements conform to ap-
plicable Federal law and the standards
identified In this section.
(2) Grantees and subgrantees will
maintain a contract administration
system which ensures that contractors
perform in accordance with the terms,
conditions, and specifications of their
contracts or purchase orders.
(3) Grantees and subgrantees will
maintain a written code of standards
of conduct governing the performance
of their employees engaged in the
award and administration of contracts.
§31.36
No employee, officer or agent of the
grantee or subgrantee shall participate
in selection, or in the award or admin-
istration of a contract supported by
Federal funds if a conflict of interest.
real or apparent, would be involved!
Such a conflict would arise when:
(D The employee, officer or agent,
(ii) Any member of his immediate
family,
dii) His or her partner, or
(iv) An organization which employs,
or is about to employ, any of the
above, has a financial or other interest
in the firm selected for award. The
grantee's or subgrantee's officers, em-
ployees or agents will neither solicit
nor accept gratuities, favors or any-
thing of monetary value from contrac-
tors, potential contractors, or parties
to subagreements. Grantee and sub-
grantees may set minimum rules
where the financial interest is not sub-
stantial or the gift is an unsolicited
item of nominal intrinsic value. To the
extent permitted by State or local law
or regulations, such standards or con-
duct will provide for penalties, sanc-
tions, or other disciplinary actions for
violations of such standards by the
grantee's and subgyantee's officers.
employees, or agents, or by contrac-
tors or their agents. The awarding
agency may in regulation provide addi-
tional prohibitions relative to real, ap-
parent, or potential conflicts of inter-
est.
(4) Grantee and subgrantee proce-
dures will provide for a review of pro-
posed procurements to avoid purchase
of unnecessary or duplicative items.
Consideration should be given to con-
solidating or breaking out procure-
ments to obtain a more economical
purchase. Where appropriate, an anal-
ysis will be made of lease versus pur-
chase alternatives, and any other ap-
propriate analysis to determine the
most economical approach.
(5) To foster greater economy and
efficiency, grantees and subgrantees
are encouraged to enter into State and
local intergovernmental agreements
for procurement or use of common
goods and services.
(6) Grantees and subgrantees are en-
couraged to use Federal excess and
surplus property in lieu of purchasing
new equipment and property when-
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$31.36
<»u irn v.n. i V./-I-OQ comon;
ever such use is feasible and reduces
project costs.
(7) Grantees and subgrantees are en-
couraged to use value engineering
clauses in contracts for construction
projects of sufficient size to offer rea-
sonable opportunities for cost reduc-
tions. Value engineering is a systemat-
ic and creative anaylsis of each con-
tract item or task to ensure that its es-
sential function is provided at the
overall lower cost.
(8) Grantees and subgrantees will
make awards only to responsible con-
tractors possessing the ability to per-
form successfully under the terms and
conditions of a proposed procurement.
Consideration will be given to such
matters as contractor integrity, com-
pliance with public policy, record of
past performance, and financial and
technical resources.
(9) Grantees and subgrantees will
maintain records sufficient to detail
the significant history of a procure-
ment. These records will include, but
are not necessarily limited to the fol-
lowing: rationale for the method of
procurement, selection of contract
type, contractor selection or rejection,
and the basis for the contract price.
(10) Grantees and subgrantees will
use time and material type contracts
only—
(i) After a determination that no
other contract is suitable, and
di) If the contract includes a ceiling
price that the contractor exceeds at its
own risk.
(11) Grantees and subgrantees alone
will be responsible, in accordance with
good administrative practice and
sound business judgment, for the set-
tlement of all contractual and admin-
istrative issues arising out of procure-
ments. These issues include, but are
not limited to source evaluation, pro-
tests, disputes, and claims. These
standards do not relieve the grantee or
subgrantee of any contractual respon-
sibilities under its contracts. Federal
agencies will not substitute their judg-
ment for that of the grantee or sub-
grantee unless the matter is primarily
a Federal concern. Violations of law
will be referred to the local. State, or
Federal authority having proper juris-
diction.
(12) Grantees and subgrantees will
have protest procedures to handle and
resolve disputes relating to their pro-
curements and shall in all instances
disclose information regarding the
protest to the awarding agency. A pro-
testor must exhaust all administrative
remedies with the grantee and sub-
grantee before pursuing a protest with
the Federal agency. Reviews of pro-
tests by the Federal agency will be
limited to:
(i) Violations of Federal law or regu-
lations and the standards of this sec-
tion (violations of State or local law
will be under the jurisdiction of State
or local authorities) and
(ii) Violations of the grantee's or
subgrantee's protest procedures for
failure to review a complaint or pro-
test. Protests received by the Federal
agency other than those specified
above will be referred to the grantee
or subgrantee.
(.^Competition. (1) All procurement
transactions will be conducted in a
manner providing full and open com-
petition consistent with the standards
of § 31.36. Some of the situations con-
sidered to be restrictive of competition
include but are not limited to:
(i) Placing unreasonable require-
ments on firms in order for them to
qualify to do business.
(ii) Requiring unnecessary experi-
ence and excessive bonding,
(iii) Noncompetitive pricing practices
between firms or between affiliated
companies,
(iv) Noncompetitive awards to con-
sultants that are on retainer contracts,
(v) Organizational conflicts of inter-
est,
(vi) Specifying only a "brand name"
product instead of allowing "an equal"
product to be offered and describing
the performance of other relevant re-
quirements of the procurement, and
(vii) Any arbitrary action in the pro-
curement process.
(2) Grantees and subgrantees will
conduct procurements in a manner
that prohibits the use of statutorily or
administratively imposed in-State or
local geographical preferences in the
evaluation of bids or proposals, except
in those cases where applicable Feder-
al statutes expressly mandate or en-
courage geographic preference. Noth-
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Environmental Protection Agency
ing in this section preempts State li-
censing laws. When contracting for ar-
chitectural and engineering (A/E)
services, geographic location may be a
selection criteria provided its applica-
tion leaves an appropriate number of
qualified firms, given the nature and
size of the project, to compete for the
contract.
(3) Grantees will have written selec-
tion procedures for procurement
transactions. These procedures will
ensure that all solicitations:
(i) Incorporate a clear and accurate
description of the technical require-
ments for the material, product, or
service to be procured. Such descrip-
tion shall not. in competitive procure-
ments, contain features which unduly
restrict competition. The description
may include a statement of the quali-
tative nature of the material, product
or service to be procured, and when
necessary, shall set forth those mini-
mum essential characteristics and
standards to which it must conform if
it is to satisfy its intended use. De-
tailed product specifications should be
avoided if at all possible. When it is
impractical or uneconomical to make a
clear and accurate description of the
technical requirements, a "brand
name or equal" description may be
used as a means to define the perform-
ance or other salient requirements of a
procurement. The specific features of
the named brand which must be met
by offerers shall be clearly stated; and
(ii) Identify all requirements which
the offerers must fulfill and all other
factors to be used in evaluating bids or
proposals.
(4) Grantees and subgrantees will
ensure that all prequalified lists of
persons, firms, or products which are
used in acquiring goods and services
are current and include enough quali-
fied sources to ensure maximum open
and free competition. Also, grantees
and subgrantees will not preclude po-
tential bidders from qualifying during
the solicitation period.
(5) Construction grants awarded
under Title II of the Clean Water Act
are subject to the following "Buy
American" requirements in para-
graphs (c)(5)(i)-(iii) of this section.
Section 215 of the Clean Water Act re-
quires that contractors give preference
§31.36
to the use of domestic material in the
construction of EPA-funded treatment
works.
(i) Contractors must use domestic
construction materials in preference to
nondomestic material if it is priced no
more than 6 percent higher than the
bid or offered price of the nondomes-
tic material, including all costs of de-
livery to the construction site and any
applicable duty, whether or not as-
sessed. The grantee will normally base
the computations on prices and costs
in effect on the date of opening bids or
proposals.
(ii) The award official may waive the
Buy American provision based on fac-
tors the award official considers rele-
vant, including:
(A) Such use is not in the public in-
terest;
(B) The cost is unreasonable;
(C) The Agency's available resources
are not sufficient to implement the
provision, subject to the Deputy Ad-
ministrator's concurrence;
-------
§31.36
40 CFR Ch. I (7-148 Edition)
property that do not cost more than
$25,000 in the aggregate. If small pur-
chase procurements are used, price or
rate quotations will be obtained from
in adequate number of qualified
sources.
(2) Procurement by sealed bids
[formal advertising). Bids are publicly
solicited and a firm-fixed-price con-
tract (lump sum or unit price) is
warded to the responsible bidder
whose bid. conforming with all the
material terms and conditions of the
nvitation for bids, is the lowest in
Drice. The sealed bid method is the
areferred method for procuring con-
struction, If the conditions in
5 31.36(d)(2)(i) apply.
(i) In order for sealed bidding to be
feasible, the following conditions
should be present:
(A) A complete, adequate, and realis-
tic specification or purchase descrip-
tion is available;
(B) Two or more responsible bidders
ire willing and able to compete effec-
tively for the business; and
(C) The procurement lends itself to
i firm fixed price contract and the se-
ection of the successful bidder can be
nade principally on the basis of price.
(ii)- If sealed bids are used, the fol-
owing requirements apply:
(A) The invitation for bids will be
>ublicly advertised and bids shall be
iolicited from an adequate number of
mown suppliers, providing them suffi-
:ient time prior to the date set for
>pening the bids;
(B) The invitation for bids, which
vill Include any specifications and per-
inent attachments, shall define the
terns or services in order for the
)idder to properly respond;
(C) All bids will be publicly opened
it the time and place prescribed in the
nvitation for bids;
(D) A firm fixed-price contract
iward will be made in writing to the
owest responsive and responsible
>idder. Where specified in bidding doc-
iments. factors such as discounts,
ransportation cost, and life cycle
;osts shall be considered in determin-
ng which bid is lowest. Payment dis-
tounts will only be used to determine
he low bid when prior experience in-
licates that such discounts are usually
aken advantage of: and
(E) Any or all bids may be rejected if
there is a sound documented reason.
(3) Procurement by competitive pro-
posals. The technique of competitive
proposals is normally conducted with
more than one source submitting an
offer, and either a fixed-price or cost-
reimbursement type contract is award-
ed. It is generally used when condi-
tions are not appropriate for the use
of sealed bids. If this method is used,
the following requirements apply:
(i) Requests for proposals will be
publicized and identify all evaluation
factors and their relative importance.
Any response to publicized requests
for proposals shall be honored to the
maximum extent practical;
(ii) Proposals will be solicited from
an adequate number of qualified
sources;
(iii) Grantees and subgrantees will
have a method for conducting techni-
cal evaluations of the proposals re-
ceived and for selecting awardees:
(iv) Awards will be made to the re-
sponsible firm whose proposal is most
advantageous to the program, with
price and other factors considered; and
(v) Grantees and subgrantees may
use competitive proposal procedures
for qualifications-based procurement
of architectural/engineering (A/E)
professional services whereby competi-
tors' qualifications are evaluated and
the most qualified competitor Is select-
ed, subject to negotiation of fair and
reasonable compensation. The
method, where price is not used as a
selection factor, can only be used in
procurement of A/E professional serv-
ices. It cannot be used to purchase
other types of services though A/E
firms are a potential source to perform
the proposed effort.
(4) Procurement by noncompetitive
proposals is procurement through so-
licitation of a proposal from only one
source, or after solicitation of a
number of sources, competition is de-
termined inadequate.
(i) Procurement by noncompetitive
proposals may be used only when the
award of a contract is infeasible under
small purchase procedures, sealed bids
or competitive proposals and one of
the following circumstances applies:
(A) The item is available only from a
single source:
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Environmental Protection Agency
(B) The public exigency or emergen-
cy for the requirement will not permit
a delay resulting from competitive so-
licitation.
(C) The awarding agency authorizes
noncompetitive proposals; or
(D) After solicitation of a number of
sources, competition is determined in-
adequate.
di) Cost analysis, i.e.. verifying the
proposed cost data, the projections of
the data, and the evaluation of the
specific elements of costs and profit, is
required.
(iii) Grantees and subgrantees may
be required to submit the proposed
procurement to the awarding agency
for pre-award review in accordance
with paragraph (g) of this section.
^e) Contracting with small and mi-
nority firms, women's business enter-
prise and labor surplus area firms. (U
The grantee and subgrantee will take
all necessary affirmative steps to
assure that minority firms, women's
business enterprises, and labor surplus
area firms are used when possible.
(2) Affirmative steps shall include:
(i) Placing qualified small and mi-
nority businesses and women's busi-
ness enterprises on solicitation lists;
(ii) Assuring that small and minority
businesses, and women's business en-
terprises are solicited whenever they
are potential sources;
(iii) Dividing total requirements,
when economically feasible, into
smaiier tasks or quantities to permit
maximum participation by small and
minority business, and women's busi-
ness enterprises;
(iv) Establishing delivery schedules,
where the requirement permits, which
encourage participation by small and
minority business, and women's busi-
ness enterprises;
(v) Using the services and assistance
of the Small Business Administration,
and the Minority Business Develop-
ment Agency of the Department of
Commerce; and
(vi) Requiring the prime contractor.
if subcontracts are to be let. to take
the affirmative steps listed in para-
graphs (e)(2) (i) through (v) of this
section.
(fi_ Contract cost and price. (1)
Grantees and subgrantees must per-
form a cost or price analysis in connec-
§31.36
tion with every procurement action in-
cluding contract modifications. The
method and degree of analysis is de-
pendent on the facts surrounding the
particular procurement situation, but
as a starting point, grantees must
make independent estimates before re-
ceiving bids or proposals. A cost analy-
sis must be performed when the of-
feror is required to submit the ele-
ments of his estimated cost. e.g.. under
professional, consulting, and architec-
tural engineering services contracts. A
cost analysis will be necessary when
adequate price competition is lacking.
and for sole source procurements, in-
cluding contract modifications or
change orders, unless price resonable-
ness can be established on the basis of
a catalog or market price of a commer-
cial product sold in substantial quanti-
ties to the general public or based on
prices set by law or regulation. A price
analysis will be used in all other in-
stances to determine the reasonable-
ness of the proposed contract price.
(2) Grantees and subgrantees will
negotiate profit as a separate element
of the price for each contract in which
there is no price competition and in all
cases where cost analysis is performed.
To establish a fair and reasonable
profit, consideration will be given to
the complexity of the work to be per-
formed, the risk borne by the contrac-
tor, the contractor's investment, the
amount of subcontracting, the quality
of its record of past performance, and
industry profit rates in the surround-
ing geographical area for similar work.
(3) Costs or prices based on estimat-
ed costs for contracts under grants will
be allowable only to the extent that
costs incurred or cost estimates includ-
ed in negotiated prices are consistent
with Federal cost principles (see
§ 31.22). Grantees may reference their
own cost principles that comply with
the applicable Federal cost principles.
(4) The cost plus a percentage of
cost and percentage of construction
cost melhods of contracting shall not
be used.
^g^ Awarding agency review. (1)
Grantees and subgrantees must make
available, upon request of the award-
ing agency, technical specifications on
proposed procurements where the
awarding agency believes such review
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8 31.36
40 CFR Ch. I (7-1-88 Edition)
is needed to ensure that the item and/
or service specified is the one being
proposed for purchase. This review
generally will take place prior to the
time the specification is incorporated
into a solicitation document. However.
if the grantee or subgrantee desires to
have the review accomplished after a
solication has been developed, the
awarding agency may still review the
specifications, with such review usual-
ly limited to the technical aspects of
the proposed purchase.
(2) Grantees and subgrantees must
on request make available for award-
ing agency pre-award review [ delete
","] procurement documents, such as
requests for proposals or invitations
for bids, independent cost estimates,
etc., when:
(i) A grantee's or subgrantee's• pro-
curement procedures or operation fails
to comply with the procurement
standards in this seciton; or
(ii) The procurement is expected to
exceed $25,000 and is to be awarded
without competition or only one bid or
offer is received in response to a solici-
tation; or
(iii) The procurement, which is ex-
pected to exceed $25.000, specifies a
"brand name" product; or
(iv) The proposed award over $25.000
is to be awarded to other than the ap-
parent low bidder under a sealed bid
procurement: or
(v) A proposed contract modification
changes the scope of a contract or in-
creases the contract amount by more
than $25,000.
(3) A grantee or subgrantee will be
exempt from the pre-award review in
paragraph (g)(2) of this section if the
awarding agency determines that its
procurement systems comply with the
standards of this section.
(i) A grantee or subgrantee may re-
quest that its procurement system be
reviewed by the awarding agency to
determine whether its system meets
these standards in order for its system
to be certified. Generally, these re-
views shall occur where there is a con-
tinuous high-dollar funding, and third-
party contracts are awarded on a regu-
lar basis;
(ii) A grantee or subgrantee may
self-certify its procurement system
Such self-certification shall not limit
the awarding agency's right to survey
the system. Under a self-certification
procedure, awarding agencies may
wish to rely on written assurances
from the grantee or subgrantee that it
is complying with these standards. A
grantee or subgrantee will cite specific
procedures, regulations, standards.
etc.. as being in compliance with these
requirements and have its system
available for review.
Jhl Bonding requirements. For con-
struction or facility improvement con-
tracts or subcontracts exceeding
$100.000, the awarding agency may
accept the bonding policy and require-
ments of the grantee or subgrantee
provided the awarding agency has
made a determination that the award-
ing agency's interest is adequately pro-
tected. If such a determination has
not been made, the minimum require-
ments shall be as follows:
(1) A bid guarantee from each bidder
equivalent to five percent of the bid
price. The "bid guarantee" shall con-
sist of a firm commitment such as a
bid bond, certified check, or other ne-
gotiable instrument accompanying a
bid as assurance that the bidder will,
upon acceptance of his bid. execute
such contractual documents as may be
required within the time specified.
(2) A performance bond on the part
of the contractor for 100 percent of the
contract price. A "performance bond"
is one executed in connection with a
contract to secure fulfillment of all
the contractor's obligations under
such contract.
(3) A payment bond on the part of
the contractor for 100 percent of the
contract price. A "payment bond" is
one executed in connection with a con-
tract to assure payment as required by
law of all persons supplying labor and
material in the execution of the work
provided for in the contract.
n) Contract provisions. A grantee's
ana subgrantee's contracts must con-
tain provisions in paragraph (i) of this
section. Federal agencies are permit-
ted to require "changes, remedies.
changed conditions, access and records
retention, suspension of work, and
other clauses approved by the Office
of Procurement Policy.
(1) Administrative, contractual, or
legal remedies in instances where con-
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environmental Krotection Agency
tractors violate or breach contract
terms, and provide for such sanctions
and penalties as may be appropriate.
(Contracts other than small pur-
chases)
(2) Termination for cause and (or
convenience by the grantee or sub-
grantee including the manner by
which it will be effected and the basis
for settlement. (All contracts in excess
of $10.000)
(3) Compliance with Executive
Order 11246 of September 24. 1965 en-
titled "Equal Employment Opportuni-
ty." as amended by Executive Order
11375 of October 13. 1967 and as sup-
plemented in Department of Labor
regulations (41 CFR Chapter 60). (All
construction contracts awarded in
excess of $10,000 by grantees and their
contractors or subgrantees)
(4) Compliance with the Copeland
"Anti-Kickback" Act (18 U.S.C. 874) as
supplemented in Department of Labor
regulations (29 CFR Part 3). (All con-
tracts and sub grants for construction
or repair)
(5) Compliance with the Davis-
Bacon Act (40 U.S.C. 276a to a-7) as
supplemented by Department of Labor
regulations (29 CFR Part 5). (Con-
struction contracts in excess of $2,000
awarded by grantees and subgrantees
when required by Federal grant pro-
gram legislation)
(6) Compliance with sections 103 and
107 of the Contract Work Hours and
Safety Standards Act (40 U.S.C. 327-
330) as supplemented by Department
of Labor regulations (29 CFR Part 5).
(Construction contracts awarded by
grantees and subgrantees in excess of
$2,000, and in excess of $2,500 for
other contracts which involve the em-
ployment of mechanics or laborers)
(7) Notice of awarding agency re-
quirements and regulations pertaining
to reporting.
(8) Notice of awarding agency re-
quirements and regulations pertaining
to patent rights with respect to any
discovery or invention which arises or
is developed In the course of or under
such contract.
(9) Awarding agency requirements
and regulations pertaining to copy-
rights and rights in data.
(10) Access by the grantee, the sub-
grantee, the Federal grantor agency,
§31.36
the Comptroller General of the
United States, or any of their duly au-
thorized representatives to any books.
documents, papers, and records of the
Contractor which are directly perti-
n-->nt to that specific contract for the
purpose of making audit, examination.
excerpts, and transcriptions.
(11) Retention of all required
records for three years after grantees
or subgrantees make final payments
and all other pending matters are
closed.
(12) Compliance with all applicable
standards, orders, or requirements
issued under section 306 of the Clear
Air Act (42 U.S.C. 1857(h)). section 508
of the Clean Water Act (33 U.S.C.
1368). Executive Order 11738. and En-
vironmental Protection Agency regula-
tions (40 CFR Part 15). (Contracts.
subcontracts. and subgrants of
amounts in excess of $100,000)
(13) Mandatory standards and poli-
cies relating to energy efficiency
which are contained in the state
energy conservation plan issued in
compliance with the Energy Policy
and Conservation Act (Pub. L. 94-163).
Payment to consultants. (1) EPA
limit its participation in the salary
rate (excluding overhead) paid to indi-
vidual consultants retained by grant-
ees or by a grantee's contractors or
subcontractors to the maximum daily
rate for a GS-18. (Grantees may, how-
ever, pay consultants more than this
amount). This limitation applies to
consultation services of designated in-
dividuals with specialized skills who
are paid at a daily or hourly rate. This
rate does not include transportation
and subsistence costs for travel per-
formed; grantees will pay these in ac-
cordance with their normal travel re-
imbursement practices. (Pub. L. 99-
591).
(2) Subagreements with firms for
services which are awarded using the
procurement requirements in this part
are not affected by this limitation.
Oc£ Use of the same architect or engi-
neer during construction. (1) If the
grantee is satisfied with the qualifica-
tions and performance of the architect
or engineer who provided any or all of
the facilities planning or design serv-
ices for a waste-water treatment works
project and wishes to retain that firm
379
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§31.37
40 CFR Ch. I (7.1-33 Edition)
or individual during construction of
the project, it may do so without fur-
ther public notice and evaluation of
qualifications, provided:
(i) The grantee received a facilities
planning (Step 1) or design grant
(Step 2), and selected the architect or
engineer in accordance with EPA's
procurement regulations in effect
when EPA awarded the grant; or
(ii) The award official approves non-
competitive procurement under
§ 31.36(d)(4) for reasons other than
simply using the same individual or
firm that provided facilities planning
or design services for the project; or
(iii) The grantee attests that:
(A) The initial request for proposals
clearly stated the possibility that the
firm or individual selected could be
awarded a subagreement for services
during construction; and
(B) The firm or individual was se-
lected for facilities planning or design
services in accordance with procedures
specified in this section.
(C) No employee, officer or agent of
the grantee, any member of their im-
mediate families, or their partners
have financial or other interest in the
firm selected for award; and
(D) None of the grantee's officers.
employees or agents solicited or ac-
cepted gratuities, favors or anything
of monetary value from contractors or
other parties to subagreements.
(2) However, if the grantee uses the
procedures in paragraph (k)(l) of this
section to retain an architect or engi-
neer, any Step 3 subagreements be-
tween the architect or engineer and
the grantee must meet all of the other
procurement provisions in § 31.36.
(53 PR 8068 and 8087, Mar. 11. 1988. and
amended at S3 FR 8075. Mar. 11. 19881
EFFECTIVE DATE NOTE: At 53 FR 8075. Mar.
11. 1988. S 31.36 (c)(5). (j) and (k) were
added, effective October 1. 1988.
§ 31.37 Subgrants.
(a) States. States shall follow state
law and procedures when awarding
and administering subgrants (whether
on a cost reimbursement or fixed
amount basis) of financial assistance
to local and Indian tribal govern-
ments. States shall:
(1) Ensure that every subgrant in-
cludes any clauses required by Federal
statute and executive orders and their
implementing regulations;
(2) Ensure that subgrantees are
aware of requirements imposed upon
them by Federal statute and regula-
tion;
(3) Ensure that a provision for com-
pliance with § 31.42 is placed in every
cost reimbursement subgrant; and
(4) Conform any advances of grant
funds to subgrantees substantially to
the same standards of timing and
amount that apply to cash advances
by Federal agencies.
(b) All other grantees. All other
grantees shall follow the provisions of
this part which are applicable to
awarding agencies when awarding and
administering subgrants (whether on a
cost reimbursement or fixed amount
basis) of financial assistance to local
and Indian tribal governments. Grant-
ees shall:
(1) Ensure that every subgrant in-
cludes a provision for compliance with
this part.
(2) Ensure that every subgrant in-
cludes any clauses required by Federal
statute and executive orders and their
implementing regulations; and
(3) Ensure that subgrantees are
aware of requirements imposed upon
them by Federal statutes and regula-
tions.
(c) Exceptions. By their own terms,
certain provisions of this part do not
apply to the award and administration
of subgrants:
(1) Section 31.10;
(2) Section 31.11;
(3) The letter-of-credit procedures
specified in Treasury Regulations at
31 CFR Part 205. cited in § 31.21; and
(4) Section 31.50.
REPORTS. RECORDS. RETENTION. AND
ENFORCEMENT
§31.40 Monitoring and reporting program
performance.
(a) Monitoring by grantees. Grantees
are responsible for managing the day-
to-day operations of grant and sub-
grant supported activities. Grantees
must monitor grant and subgrant sup-
ported activities to assure compliance
with applicable Federal requirements
and that performance goals are being
achieved. Grantee monitonng must
380
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Environmental Protection Agency
cover each program, function or activi-
ty.
(b) Nonconstruction performance re-
ports. The Federal agency may. if it
decides that performance information
available from subsequent applications
contains sufficient information to
meet its programmatic needs, require
the grantee to submit a performance
report only upon expiration or termi-
nation of grant support. Unless waived
by the Federal agency this report will
be due on the same date as the final
Financial Status Report.
(1) Grantees shall submit annual
performance reports unless the award-
ing agency requires quarterly or semi-
annual reports. However, performance
reports will not be required more fre-
quently than quarterly. Annual re-
ports shall be due 90 days after the
grant year, quarterly or semi-annual
reports shall be due 30 days after the
reporting period. The final perform-
ance report will-be due 90 days after
the expiration or termination of grant
support. If a justified request is sub-
mitted by a grantee, the Federal
agency may extend the due date for
any performance report. Additionally.
requirements for unnecessary per-
formance reports may be waived by
the Federal agency.
(2) Performance reports will contain,
for each grant, brief information on
the following:
(i) A comparison of actual accom-
plishments to the objectives estab-
lished for the period. Where the
output of the project can be quanti-
fied, a computation of the cost per
unit of output may be required if that
information will be useful.
(ii) The reasons for slippage if estab-
lished objectives were not met.
(ill) Additional pertinent informa-
tion including, when appropriate, anal-
ysis and explanation of cost overruns
or high unit costs.
(3) Grantees will not be required to
submit more than the original and two
copies of performance reports.
(4) Grantees will adhere to the
standards in this section in prescribing
performance reporting requirements
for subgrantees.
(c) Construction performance re-
ports. For the most part, on-site tech-
nical inspections and certified percent-
§31.41
age-of-completion data are relied on
heavily by Federal agencies to monitor
progress under construction grants
and subgrants. The Federal agency
will require additional formal perform-
ance reports only when considered
necessary, and never more frequently
than quarterly.
(d) Significant developments. Events
may occur between the scheduled per-
formance reporting dates which have
significant impact upon the grant or
subgrant supported activity. In such
cases, the grantee must inform the
Federal agency as soon as the follow-
ing types of conditions become known:
(1) Problems, delays, or adverse con-
ditions which will materially impair
the ability to meet the objective of the
award. This disclosure must include a
statement of the action taken, or con-
templated, and any assistance needed
to resolve the situation.
(2) Favorable developments which
enable meeting time schedules and ob-
jectives sooner or at less cost than an-
ticipated or producing more beneficial
results than originally planned.
(e) Federal agencies may make site
visits as warranted by program needs.
(f) Waivers, extensions. (1) Federal
agencies me.y waive any performance
report required by this part if not
needed.
(2) The grantee may waive any per-
formance report from a subgrantee
when not needed. The grantee may
extend the due date for any perform-
ance report from a subgrantee if the
grantee will still be able to meet its
performance reporting obligations to
the Federal agency.
§ 31.41 Financial Reporting.
(a) General (1) Except as provided
in paragraphs (a) (2) and (5) of this
section, grantees will use only the
forms specified in paragraphs (a)
through (e) of this section, and such
supplementary or other forms as may
from time to time be authorized by
OMB, for:
(1) Submitting financial reports to
Federal agencies, or
(ii) Requesting advances or reim-
bursements when letters of credit are
not used.
381
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40 CFR Ch. I (7-1-88 Edition)
(2) Grantees need not apply the
forms prescribed in this section in
dealing with their subgrantees. How-
ever, grantees shall not impose more
burdensome requirements on subgran-
tees.
(3) Grantees shall follow all applica-
ble standard and supplemental Feder-
al agency instructions approved by
OMB to the extend required under the
Paperwork Reduction Act of 1980 for
use in connection with forms specified
in paragraphs (b) through (e) of this
section. Federal agencies may issue
substantive supplementary instruc-
tions only with the approval of OMB.
Federal agencies may shade out or in-
struct the grantee to disregard any
line item that the Federal agency
finds unnecessary for its decisionmak-
ing purposes.
(4) Grantees will not be required to
submit more than the original and two
copies of forms required under this
part.
(5) Federal agencies may provide
computer outputs to grantees to expe-
dite or contribute to the accuracy of
reporting. Federal agencies may
accept the required information from
grantees in machine usable format or
computer printouts instead of pre-
scribed forms.
(6) Federal agencies may waive any
report required by this section if not
needed.
(7) Federal agencies may extend the
due date of any financial report upon
receiving a justified request from a
grantee.
(b) Financial Status Report—(I)
Form. Grantees will use Standard
Form 269 or 269A. Financial Status
Report, to report the status of funds
for all nonconstruction grants and for
construction grants when required in
accordance with § 31.41(e)(2)(iii).
(2) Accounting basis. Each grantee
will report program outlays and pro-
gram income on a cash or accrual basis
as prescribed by the awarding agency.
If the Federal agency requires accrual
information and the grantee's ac-
counting records are not normally
kept on the accural basis, the grantee
shall not be required to convert its ac-
counting system but shall develop
such accrual information through and
analysis of the documentation on
hand.
(3) Frequency. The Federal agency
may prescribe the frequency of the
report for each project or program.
However, the report will not be re-
quired more frequently than quarter-
ly. If the Federal agency does not
specify the frequency of the report, it
will be submitted annually. A final
report will be required upon expira-
tion or termination of grant support.
(4) Due date. When reports are re-
quired on a quarterly or semiannual
basis, they will be due 30 days after
the reporting period. When required
on an annual basis, they will be due 90
days after the grant year. Final re-
ports will be due 90 days after the ex-
piration or termination of grant sup-
port.
(c) Federal Cash Transactions
Report—(I) Form, (i) For grants paid
by letter or credit, Treasury check ad-
vances or electronic transfer of funds,
the grantee will submit the Standard
Form 272. Federal Cash Transactions
Report, and when necessary, its con-
tinuation sheet. Standard Form 27 2a.
unless the terms of the award exempt
the grantee from this requirement.
(ii) These reports will be used by the
Federal agency to monitor cash ad-
vanced to grantees and to obtain dis-
bursement or outlay information for
each grant from grantees. The format
of the report may be adapted as ap-
propriate when reporting is to be ac-
complished with the assistance of
automatic data processing equipment
provided that the information to be
submitted is not changed in substance.
(2) Forecasts of Federal cash require-
ments. Forecasts of Federal cash re-
quirements may be required in the
"Remarks" section of the report.
(3) Cash in hands of subgrantees.
When considered necessary and feasi-
ble by the Federal agency, grantees
may be required to report the amount
of cash advances in excess of three
days' needs in the hands of their sub-
grantees or contractors and to provide
short narrative explanations of actions
taken by the grantee to reduce the
excess balances.
(4) Frequency and due date. Grant-
ees must submit the report no later
than 15 working days following the
382
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Environmental Protection Agency
end of each quarter. However, where
an advance either by letter of credit or
electronic transfer of funds is author-
ized at an annualized rate of one mil-
lion dollars or more, the Federal
agency may require the report to be
submitted within 15 working days fol-
lowing the end of each month.
(d) Request for advance or reim-
bursement—(I) Advance payments. Re-
quests for Treasury check advance
payments will be submitted on Stand-
ard Form 270, Request for Advance or
Reimbursement. (This form will not
be used for drawdowns under a letter
of credit, electronic funds transfer or
when Treasury check advance pay-
ments are made to the grantee auto-
matically on a predetermined basis.)
(2) Reimbursements. Requests for re-
imbursement under nonconstruction
grants will also be submitted on Stand-
ard Form 270. (For reimbursement re-
quests under construction grants, see
paragraph (e)(l) of this section.)
(3) The frequency for submitting
payment requests is treated in
§ 31.41(b)(3).
(e) Outlay report and request for re-
imbursement for construction pro-
grams. (1) Grants that support con-
struction activities paid by reimburse-
ment method.
(i) Requests for reimbursement
under construction grants will be sub-
mitted on Standard Form 271. Outlay
Report and Request for Reimburse-
ment for Construction Programs. Fed-
eral agencies may, however, prescribe
the Request for Advance or Reim-
bursement form, specified in
§ 31.41(d). instead of this form.
(ii) The frequency for submitting re-
imbursement requests is treated in
§ 31.41(b)(3).
(2) Grants that support construction
activities paid by letter of credit, elec-
tronic funds transfer or Treasury
check advance. (1) When a construc-
tion grant is paid by letter of credit.
electronic funds transfer or Treasury
check advances, the grantee will
report its outlays to the Federal
agency using Standard Form 271,
Outlay Report and Request for Reim-
bursement for Construction Programs.
The Federal agency will provide any
necessary special instruction. Howev-
§31.4
er, frequency and due date shall t
governed by § 31.4Kb) (3) and (4).
(ii) When a construction grant
paid by Treasury check advance
based on periodic requests from tfc
grantee, the advances will be reques
ed on the form specified in § 31.41(d
(iii) The Federal agency may subst
tute the Financial Status Report spe<
ified in § 31.41(b) for the Outla
Report and Request for Reimbursi
ment for Construction Programs.
(3) Accounting basis. The accountin
basis for the Outlay Report and R»
quest for Reimbursement for Coi
struction Programs shall be governe
by §31.41(b)(2).
§ 31.42 Retention and access requiremen
for records.
(a) Applicability. (1) This section aj
plies to all financial and programmati
records, supporting documents, statL
tical records, and other records c
grantees or subgrantees which are:
(i) Required to be maintained by th
terms of this Part, program reguh
tions or the grant agreement, or
(ii) Otherwise reasonably considere
as pertinent to program regulations o
the grant agreement.
(2) This section does not apply t
records maintained by contractors o
subcontractors. For a requirement t
place a provision concerning records i
certain kinds of contracts, se
§31.36(0(10).
(b) Length of retention period. (3
Except as otherwise provided, recorc
must be retained for three years froi
the starting date specified in par
graph (c) of this section.
(2) If any litigation, claim, negoti
tion. audit or other action involvir
the records has been started befoi
the expiration of the 3-year perio
the records must be retained unl
completion of the action and resol
tion of all issues which arise from i
or until the end of the regular 3-ye;
period, whichever is later.
(3) To avoid duplicate recordkee
ing, awarding agencies may make sp
cial arrangements with grantees ai
subgrantees to retain any recor
which are continuously needed f
joint use. The awarding agency will i
quest transfer of records to its custo<
383
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§31.43
40 CFR Ch. I (7-1-88 Edition;
when it determines that the records
possess long-term retention value.
When the records are transferred to
or maintained by the Federal agency.
the 3-year retention requirement is
not applicable to the grantee or sub-
grantee.
(c) Starting date of retention
period—(1) General When grant sup-
port is continued or renewed at annual
or other intervals, the retention period
for the records of each funding period
starts on the day the grantee or sub-
grantee submits to the awarding
agency its single or last expenditure
report for that period. However, if
grant support is continued or renewed
quarterly, the retention period for
each year's records starts on the day
the grantee submits its expenditure
report for the last quarter of the Fed-
eral fiscal year. In all other cases, the
retention period starts on the day the
grantee submits its final expenditure
report. If an expenditure report has
been waived, the retention period
starts on the day the report would
have been due.
(2) Real property and equipment
records. The retention period for real
property and equipment records starts
from the date of the disposition or re-
placement or transfer at the direction
of the awarding agency.
(3) Records for income transactions
after grant or subgrant support In
some cases grantees must report
income after the period of grant sup-
port. Where there is such a require-
ment, the retention period for the
records pertaining to the earning of
the income starts from the end of the
grantee's fiscal year in which the
income is earned.
(4) Indirect cost rate proposals, cost
allocations plans, etc. This paragraph
applies to the following types of docu-
ments, and their supporting records:
indirect cost rate computations or pro-
posals, cost allocation plans, and any
similar accounting computations of
the rate at which a particular group of
costs is chargeable (such as computer
usage chargeback rates or composite
fringe benefit rates).
(i) // submitted for negotiation. If
the proposal, plan, or other computa-
tion is required to be submitted to the
Federal Government (or to the grant-
ee) to form the basis for negotiation of
the rate, then the 3-year retention
period for its supporting records starts
from the date of such submission.
(ii) // not submitted for negotiation.
If the proposal, plan, or other compu-
tation is not required to be submitted
to the Federal Government (or to the
grantee) for negotiation purposes.
then the 3-year retention period for
the proposal plan, or computation and
its supporting records starts from end
of the fiscal year (or other accounting
period) covered by the proposal, plan.
or other computation.
(d) Substitution of microfilm. Copies
made by microfilming, photocopying.
or similar methods may be substituted
for the original records.
(e) Access to records—(I) Records of
grantees and subgrantees. The award-
ing agency and the Comptroller Gen-
eral of the United States, or any of
their authorized representatives, shall
have the right of access to any perti-
nent books, documents, papers, or
other records of grantees and subgran-
tees which are pertinent to the grant.
in order to make audits, examinations.
excerpts, and transcripts.
(2) Expiration of right of access. The
rights of access in this section must
not be limited to the required reten-
tion period but shall last as long as the
records are retained.
(f) Restrictions on public access.
The Federal Freedom of Information
Act (5 U.S.C. 552) does not apply to
records Unless required by Federal,
State, or local law, grantees and sub-
grantees are not required to permit
public access to their records.
§31.43 Enforcement.
(a) Remedies for noncompliance. If a
grantee or subgrantee materially fails
to comply with any term of an award.
whether stated in a Federal statute or
regulation, an assurance, in a State
plan or application, a notice of award.
or elsewhere, the awarding agency
may take one or more of the following
actions, as appropriate in the circum-
stances:
(1) Temporarily withhold cash pay-
ments pending correction of the defi-
ciency by the grantee or subgrantee or
384
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rrofvctioci Agency
more severe enforcement action by the
awarding agency.
(2) Disallow (that is. deny both use
of funds and matching credit for) all
or part of the cost of the activity or
action not in compliance.
(3) Wholly or partly suspend or ter-
minate the current award for the
grantee's or subgrantee's program.
(i) EPA can also wholly or partly
annul the current award for the grant-
ee's or subgrantee's program.
(4) Withhold further awards for the
program, or
(5) Take other remedies that may be
legally available.
(b) Hearings, appeals. In taking an
enforcement action, the awarding
agency will provide the grantee or sub-
grantee an opportunity for such hear-
ing. appeal, or other administrative
proceeding to which the grantee or
subgrantee is entitled under any stat-
ute or regulation applicable to the
action involved.
(c) Effects of suspension and termi-
nation. Costs of grantee or subgrantee
resulting from obligations incurred by
the grantee or subgrantee during a
suspension or after termination of an
award, are not allowable unless the
awarding agency expressly authorizes
them in the notice of suspension or
termination or subsequently. Other
grantee or subgrantee costs during
suspension or after termination which
are necessary and not reasonably
avoidable are allowable if:
( 1 ) The costs result from obligations
which were properly incurred by the
grantee or subgrantee before the ef-
fective date of suspension or termina-
tion, are not in anticipation of it, and,
in the case of a termination, are non-
cancellable. and,
(2) The costs would be allowable If
the award were not suspended or ex-
pired normally at the end of the fund-
ing period in which the termination
takes effect.
(d) Relationship to Debarment and
Suspension. The enforcement reme-
dies identified in this section, includ-
ing suspension and termination, do not
preclude grantee or subgrantee from
being subject to "Debarment and Sus-
pension" under E.O. 12549 (see
§31.35).
§31.50
[53 PR 8068 and 8087. Mar 11. 1988. and
amended at 53 FR 8076. Mar 11. 1988]
EFFECTIVE DATE NOTE: At 53 FR 8076. Mar.
11. 1988. §31.43 (a)(3)d) was added, effec-
tive October 1. 1988.
§ 31.44 Termination for convenience.
Except as provided in § 31.43 awards
may be terminated in whole or in part
only as follows:
(a) By the awarding agency with the
consent of the grantee or subgrantee
in which case the two parties shall
agree upon the termination condi-
tions, including the effective date and
in the case of partial termination, the
portion to be terminated, or
(b) By the grantee or subgrantee
upon written notification to the
awarding agency, setting forth the
reasons for such termination, the ef-
fective date, and in the case of partial
termination, the portion to be termi-
nated. However, if. in the case of a
partial termination, the awarding
agency determines that the remaining
portion of the award will not accom-
plish the purposes for which the
award was made, the awarding agency
may terminate the award in its entire-
ty under either § 31.43 or paragraph
(a) of this section.
§ 31.45 Quality assurance.
If the grantee's project involves en-
vironmentally related measurements
or data generation, the grantee shall
develop and implement quality assur-
ance practices consisting of policies,
procedures, specifications, standards,
and documentation sufficient to
produce data of quality adequate to
meet project objectives and to mini-
mize loss of data due to out-of-control
conditions or malfunctions.
[53 FR 8076. Mar. 11. 1988]
Emcrrvz DATE NOTE At 53 FR 8076, Mar.
11. 1988. I 31.45 was added, effective Octo-
ber 1. 1988.
Subpart D—After-The-Grant
Requirements
§ 31.50 CloseouL
(a) General The Federal agency will
close out the award when it' deter-
mines that all applicable administra-
385
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§31.51
40 CFR Ch. I (7-1-88 Edition)
tive actions and all required work of
the grant has been completed.
(b) Reports. Within 90 days after the
expiration or termination of the grant.
the grantee must submit all financial.
performance, and other reports re-
quired as a condition of the grant.
Upon request by the grantee. Federal
agencies may extend this timeframe.
These may include but are not limited
to:
(1) Final performance or progress
report.
(2) Financial Status Report (SF 269)
or Outlay Report and Request for Re-
imbursement for Construction Pro-
grams (SF-271) (as applicable.)
(3) Final request for payment (SF-
270) (if applicable).
(4) Invention disclosure, (if applica-
ble).
(5) Federally-owned property report
In accordance with § 31.32(f). a grant-
ee must submit an inventory of all fed-
erally owned property (as distinct
from property acquired with grant
funds) for which it is accountable and
request disposition instructions from
the Federal agency of property no
longer needed.
(c) Cost adjustment. The Federal
agency will, within 90 days after re-
ceipt of reports in paragraph (b) of
this section, make upward or down-
ward adjustments to the allowable
costs.
(d) Cash adjustments. (1) The Feder-
al agency will make prompt payment
to the grantee for allowable reimburs-
able costs.
(2) The grantee must immediately
refund to the Federal agency any bal-
ance of unobligated (unencumbered)
cash advanced that is not authorized
to be retained for use on other grants.
§ 31.51 Later disallowances and adjust-
ments.
The closeout of a grant does not
affect:
(a) The Federal agency's right to dis-
allow costs and recover funds on the
basis of a later audit or other review:
(b) The grantee's obligation to
return any funds due as a result of
later refunds, corrections, or other
transactions;
(C) Records retention as required in
§31.42;
(d) Property management require-
ments in §§ 31.31 and 31.32; and
(e) Audit requirements in § 31.26.
§ 31.52 Collection of amounts due.
(a) Any funds paid to a grantee in
excess of the amount to which the
grantee is finally determined to be en-
titled under the terms of the award
constitute a debt to the Federal Gov-
ernment. If not paid within a reasona-
ble period after demand, the Federal
agency may reduce the debt by:
(1) Making an adminstrative offset
against other requests for reimburse-
ments,
(2) Withholding advance payments
otherwise due to the grantee, or
(3) Other action permitted by law.
(b) Except where otherwise provided
by statutes or regulations, the Federal
agency will charge interest on an over-
due debt in accordance with the Fed-
eral Claims Collection Standards (4
CFR Ch. II). The date from which in-
terest is computed is not extended by
litigation or the filing of any form of
appeal.
Subport E—Entitlement [Reserved]
Subport F—Disputes
SOURCE: 53 FR 8076. Mar. 11. 1988. unless
otherwise noted.
EFFECTIVE DATE NOTE: At 53 PR 8076. Mar.
11, 1988. Subpart F was added, effective Oc-
tober 1. 1988.
§ 31.70 Disputes.
(a) Disagreements should be re-
solved at the lowest level possible.
(b) If an agreement cannot be
reached, the EPA disputes decision of-
ficial will provide a written final deci-
sion. The EPA disputes decision offi-
cial is the individual designated by the
award official to resolve disputes con-
cerning assistance agreements.
(c) The disputes decision official's
decision will constitute final agency
action unless a request for review is
filed by registered mail, return receipt
requested, within 30 calendar days of
the date of the decision.
(1) For final decisions issued by an
EPA disputes decision official at Head-
quarters, the request for review shall
386
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Environmental Protection Agency
be filed with the Assistant Administra-
tor responsible for the assistance pro-
gram.
(2) For final decisions issued by a
Regional disputes decision official, the
request for review shall be filed with
the Regional Administrator. If the Re-
gional Administrator issued the final
decision, the request for reconsider-
ation shall be filed with the Regional
Administrator.
(d) The request shall include:
(DA copy of the EPA disputes deci-
sion official's final decision:
(2) A statement of the amount in
dispute:
(3) A description of the issues in-
volved: and
(4) A concise statement of the objec-
tions to the final decision.
(e) The disputant(s) may be repre-
sented by counsel and may submit doc-
umentary evidence and briefs for in-
clusion in a written record.
(f) Disputants are entitled to an in-
formal conference with EPA officials.
(g) Disputants are entitled to a writ-
ten decision from the appropriate Re-
gional or Assistant Administrator.
(h) A decision by the Assistant Ad-
ministrator to confirm the final deci-
sion of a Headquarters disputes deci-
sion official will constitute the final
Agency action.
(i) A decision by the Regional Ad-
ministrator to confirm the Regional
disputes decision official's decision will
constitute the final Agency action.
However, a petition for discretionary
review by the Assistant Administrator
responsible for the assistance program
may be filed within 30 calendar days
of the Regional Administrator's deci-
sion. The petition shall be sent to the
Assistant Administrator by registered
mail, return receipt requested, and
shall include:
(DA copy of the Regional Adminis-
trator's decision; and
(2) A concise statement of the objec-
tions to the decision.
(j) If the Assistant Administrator de-
cides not to review the Regional Ad-
ministrator's decision, the Assistant
Administrator will advise the
disputant(s) in writing that the Re-
gional Administrator's decision re-
mains the final Agency action.
Port 31, App. A
(k) If the Assistant Administrator
decides to review the Regional Admin-
istrator's decision, the review will gen-
erally be limited to the written record
on which the Regional Administrator's
decision was based. The Assistant Ad-
ministrator may allow the disputant(s)
to submit briefs in support of the peti-
tion for review and may provide an op-
portunity for an informal conference
in order to clarify technical or legal
issues. After reviewing the Regional
Administrator's decision, the Assistant
Administrator will issue a written deci-
sion which will then become the final
Agency action.
(1) Reviews may not be requested of:
(1) Decisions on requests for excep-
tions under § 31.6:
(2) Bid protest decisions under
§ 31.36(b)(12);
(3) National Environmental Policy
Act decisions under Part 6;
(4) Advanced wastewater treatment
decisions of the Administrator; and
(5) Policy decisions of the EPA
Audit Resolution Board.
APPENDIX A—PART 31 AUDIT REQUIRE-
MENTS FOR STATE AND LOCAL GOV-
ERNMENT RECIPIENTS
EXECUTIVE OFFICE OF THE
PRESIDENT
Office of Management and Budget
Circular No. A-128
April 12. 1985
To the Heads of Executive Departments
and Establishments.
Subject: Audits of State and Local Govern-
ments.
1. Purpose. This Circular is issued pursu-
ant to the Single Audit Act of 1984. Pub. L.
98-502. It establishes audit requirements for
State and local governments that receive
Federal aid, and defines Federal responsibil-
ities for implementing and monitoring those
requirements.
2. Supersession. The Circular supersedes
Attachment P. "Audit Requirements," of
Circular A-102. "Uniform requirements for
grants to State and local governments."
3. Background. The Single Audit Act
builds upon earlier efforts to improve audits
of. Federal aid programs. The Act requires
State or local governments that receive
$100.000 or more a year in Federal funds to
have an audit made for that year. Section
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Part 31, App. A
40 CFR Ch. I (7-1-88 Edition)
7505 of the Act requires the Director of the
Office of Management and Budget to pre-
scribe policies, procedures and guidelines to
implement the Act. It specifies that the Di-
rector shall designate "cognizant" Federal
agencies, determine criteria for making ap-
propriate charges to Federal programs for
the cost of audits, and provide procedures to
assure that small firms or firms owned and
controlled by disadvantaged individuals
have the opportunity to participate in con-
tracts for single audits.
4. Policy. The Single Audit Act requires
the following:
a. State or local governments that receive
$100.000 or more a year in Federal financial
assistance shall have an audit made in ac-
cordance with this Circular.
b. State or local governments that receive
between $25.000 and $100.000 a year shall
have an audit made in accordance with this
Circular, or in accordance with Federal laws
and regulations governing the programs
they participate in.
c. State or local governments that receive
less than $25.000 a year shall be exempt
from compliance with the Act and other
Federal audit requirements. These State
and local governments shall be governed by
audit requirements prescribed by State or
local law or regulation.
d. Nothing in this paragraph exempts
State or local governments from maintain-
ing records of Federal financial assistance
or from providing access to such records to
Federal agencies, as provided for in Federal
law or in Circular A-102. "Uniform require-
ments for grants to State or local govern-
ments."
5. Definitions. For the purposes of this
Circular the following definitions from the
Single Audit Act apply:
a. "Cognizant agency" means the Federal
agency assigned by the Office of Manage-
ment and Budget to carry out the responsi-
bilities described in paragraph 11 of this
Circular.
b. "Federal financial assistance" means as-
sistance provided by a Federal agency in the
form of grants, contracts, cooperative agree-
ments, loans, loan guarantees, property, in-
terest subsidies, insurance, or direct appro-
priations, but does not include direct Feder-
al cash assistance to individuals. It Includes
awards received directly from Federal agen-
cies, or indirectly through other units of
State and local governments.
c. "Federal agency" has the same meaning
as the term "agency" in section 551(1) of
Title 5, United States Code.
d. "Generally accepted accounting princi-
ples" has the meaning specified in the gen-
erally accepted government auditing stand-
ards.
e. "Generally accepted government audit-
ing standards" means the Standards for
Audit of Government Organizations. Pro-
grams, Activities, and Functions, developed
by the Comptroller General, dated Febru-
ary 27. 1981.
f. "Independent auditor" means:
(1) A State or local government auditor
who meets the independence standards
specified in generally accepted government
auditing standards: or
(2) A public accountant who meets such
independence standards.
g. "Internal controls" means the plan of
organ" ifion and methods and procedures
adopted oy management to ensure that:
(1) Resource use is consistent with laws.
regulations, and policies;
(2) Resources are safeguarded against
waste, loss, and misuse; and
(3) Reliable data are obtained, main-
tained, and fairly disclosed in reports.
h. "Indian tribe" means any Indian tribe,
band, nations, or other organized group or
community, including any Alaskan Native
village or regional or village corporations (as
defined in. or established under, the Alas-
kan Native Claims Settlement Act) that is
recognized by the United States as eligible
for the special programs and services provid-
ed by the United States to Indians because
of their status as Indians.
i. "Local government" means any unit of
local government within a State, including a
county, a borough, municipality, city, town,
township, parish, local public authority, spe-
cial district, school district, intrastate dis-
trict, council of governments, and any other
instrumentality of local government.
j. "Major Federal Assistance Program." as
defined by Pub. L. 98-502, is described in
the Attachment to this Circular.
k. "Public accountants" means those indi-
viduals who meet the qualification stand-
ards included in generally accepted govern-
ment auditing standards for personnel per-
forming government audits.
1. "State" means any State of the United
States, the District of Columbia, the Com-
monwealth of Puerto Rico, the Virgin Is-
lands. Guam. American Samoa, the Com-
monwealth of the Northern Mariana Is-
lands, and the Trust Territory of the Pacific
Islands, any instrumentality thereof, and
any multi-State, regional, or interstate
entity that has governmental functions and
any Indian tribe.
m. "Subrecipient" means any person or
government department, agency, or estab-
lishment that receives Federal financial as-
sistance to carry out a program through a
State or local government, but does not in-
clude an individual that is a beneficiary of
such a program. A subrecipient may also be
a direct recipient of Federal financial assist-
ance.
6. Scope of audit The Single Audit Act
provides that:
388
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Environmental Protection Agency
a. The audit shall be made by an inde-
pendent auditor in accordance with general-
ly accepted government auditing standards
covering financial and compliance audits.
b. The audit shall cover the entire oper-
ations of a State or local government or. at
the option of that government, it may cover
departments, agencies or establishments
that received, expended, or otherwise ad-
ministered Federal financial assistance
during the year. However, if a State or local
government receives S25.000 or more in
General Revenue Sharing Funds in a fiscal
year, it shall have an audit of its entire op-
erations. A series of audits of individual de-
partments, agencies, and establishments for
the same fiscal year may be considered a
single audit.
c. Public hospitals and public colleges and
universities may be excluded from State and
local audits and the requirements of this
Circular. However, if such entities are ex-
cluded, audits of these entities shall be
made in accordance with statutory require-
ments and the provisions of Circular A-110.
"Uniform requirements for grants to univer-
sities, hospitals, and other nonprofit organi-
zations."
d. The auditor shall determine whether:
(1) The financial statements of the gov-
ernment, department, agency or establish-
ment present fairly its financial position
and the results of Its financial operations in
accordance with generally accepted account-
ing principles:
(2) The organization has Internal account-
ing and other control systems to provide
reasonable assurance that it is managing
Federal financial assistance programs in
compliance with applicable laws and regula-
tions: and
(3) The organization has complied with
laws and regulations that may have materi-
al effect on its financial statements and on
each major Federal assistance program.
7. Frequency of audit Audits shall be
made annually unless the State or local gov-
ernment has. by January 1. 1987. a constitu-
tional or statutory requirement for less fre-
quent audits. For those governments, the
cognizant agency shall permit biennial
audits, covering both years, if the govern-
ment so requests. It shall also honor re-
quests for biennial audits by governments
that have an administrative policy calling
for audits less frequent than annual, but
only for fiscal years beginning before Janu-
ary 1.1987.
8. Internal control and compliance re-
views. The Single Audit Act requires that
the independent auditor determine and
report on whether the organization has in-
ternal control systems to provide reasonable
assurance that it is managing Federal assist-
ance programs in compliance with applica-
ble laws and regulations.
Part 31, App. A
a. Internal control review. In order to pro-
vide this assurance the auditor must make a
study and evaluation of internal control sys-
tems used in administering Federal assist-
ance programs. The study and evaluation
must be made whether or not the auditor
intends to place reliance on such systems.
As part of this review, the auditor shall:
(1) Test whether these internal control
systems are functioning in accordance with
prescribed procedures.
(2) Examine the recipient's system for
monitoring subrecipients and obtaining and
acting on subrecipient audit reports.
b. Compliance review. The law also re-
quires the auditor to determine whether the
organization has complied with laws and
regulations that may have a material effect
on each major Federal assistance program.
(1) In order to determine which major
programs are to be tested for compliance.
State and local governments shall identify
in their accounts all Federal funds received
and expended and the programs under
which they were received. This shall include
funds received directly from Federal agen-
cies and through other State and local gov-
ernments.
(2) The review must Include the selection
and testing of a representative number of
charges from each major Federal assistance
program. The selection and testing of trans-
actions shall be based on the auditor's pro-
fessional judgment considering such factors
as the amount of expenditures for the pro-
gram and the individual awards; the new-
ness of the program or changes in its condi-
tions; prior experience with the program.
particularly as revealed in audits and other
evaluations (e.g.. inspections program re-
views); the extent to which the program is
carried out through subrecipients: the
extent to which the program contracts for
goods or services; the level to which the pro-
gram is already subject to program reviews
or other forms of independent oversight:
the adequacy of the controls for ensuring
compliance; the expectation of adherence or
lack of adherence to the applicable laws and
regulations; and the potential impact of ad-
verse findings.
(a) In making the test of transactions, the
auditor shall determine whether.
—The amounts reported as expenditures
were for allowable services, and
—The records show that those who received
services or benefits were eligible to receive
them.
(b) In addition to transaction testing, the
auditor shall determine whether:
—Matching requirements, levels of effort
and earmarking limitations were met.
—Federal financial reports and claims for
advanced and reimbursements contain in-
formation that is supported by the books
389
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Port 31, App. A
40 CFR Ch. I (7-1-88 Edition)
and records from which the basic financial
statements have been prepared, and
—Amounts claimed or used for matching
were determined in accordance with OMB
Circular A-87, "Cost principles for State
and local governments," and Attachment
P of Circular A-102. "Uniform require-
ments for grants to State and local gov-
ernments."
(c) The principal compliance requirements
of the largest Federal aid programs may be
ascertained by referring to the Compliance
Supplement for Single Audits of State and
Local Governments, issued by OMB and
available from the Government Printing
Office. For those programs not covered in
the Compliance Supplement, the auditor
may ascertain compliance requirements by
researching the statutes, regulations, and
agreements governing individual'programs.
(3) Transactions related to other Federal
assistance programs that are selected in
connection with examinations of financial
statements and evaluations of internal con-
trols shall be tested for compliance with
Federal laws and regulations that apply to
such transactions.
9. Subrecipients. State or local govern-
ments that receive Federal financial assist-
ance and provide $25,000 or more of it in a
fiscal year to a subrecipient shall:
a. Determine whether State or local subre-
cipients have met the audit requirements of
this Circular and whether subrecipients cov-
ered by Circular A-110. "Uniform require-
ments for grants to universities, hospitals.
and other nonprofit organizations." have
met that requirement:
b. Determine whether the subrecipient
spent Federal assistance funds provided In
accordance with applicable laws and regula-
tions. This may be accomplished by review-
ing an audit of the subrecipient made in ac-
cordance with this Circular, Circular A-110,
or through other means (e.g.. program re-
views) If the subrecipient has not yet had
such ar audit;
c. Ensure that appropriate corrective
action is taken within six months after re-
ceipt of the audit report in instances of non-
compliance with Federal laws and regula-
tions;
d. Consider whether subrecipient audits
necessitate adjustment of the recipient's
own records: and
e. Require each subrecipient to permit in-
dependent auditors to have access to the
records and financial statements as neces-
sary to comply with this Circular.
10. Relation to other audit requirements.
The Single Audit Act provides that an audit
made in accordance with this Circular shall
be in lieu of any financial or financial com-
pliance audit required under Individual Fed-
eral assistance programs. To the extent that
a single audit provides Federal agencies
with information and assurance they need
to carry out their overall responsibilities.
they shall rely upon and use such informa-
tion. However, a Federal agency shall make
any additional audits which are necessary to
carry out its responsibilities under Federal
law and regulation. Any additional Federal
audit effort shall be planned and carried out
in such a way as to avoid duplication.
a. The provisions of this Circular do not
limit the authority of Federal agencies to
make, or contract for audits and evaluations
of Federal financial assistance programs.
nor do they limit the authority of any Fed-
eral agency Inspector General or other Fed-
eral audit official.
b. The provisions of this Circular do not
authorize any State or local government or
subrecipient thereof to constrain Federal
agencies, in any manner, from carrying out
additional audits.
c. A Federal agency that makes or con-
tracts for audits in additon to the audits
made by recipients pursuant to this Circular
shall, consistent with other applicable laws
and regulations, arrange for funding the
cost of such additional audits. Such addi-
tional audits include economy and efficien-
cy audits, program results audits, and pro-
gram evaluations.
11. Cognizant agency responsibilities. The
Single Audit Act provides for congnizant
Federal agencies to oversee the implementa-
tion of this Circular.
a. The Office of Management and Budget
will assign cognizant agencies for States and
their subdivisions and larger local govern-
ments and their subdivisions. Other Federal
agencies may participate with an assigned
cognizant agency, in order to fulfill the cog-
nizant responsibilities. Smaller governments
not assigned a cognizant agency will be
under the general oversight of the Federal
agency that provides them the most funds
whether directly or indirectly.
b. A cognizant agency shall have the fol-
lowing responsibilities:
(1) Ensure that audits are made and re-
ports are received in a timely manner and in
accordance with the requirements of this
Circular.
(2) Provide technical advice and liaison to
State and local governments and independ-
ent auditors.
(3) Obtain or make quality control reviews
of selected audits made by non-Federal
audit organizations, and provide the results.
when appropriate, to other interested orga-
nizations.
(4) Promptly inform other affected Feder-
al agencies and appropriate Federal law en-
forcement officials of any reported illegal
acts or irregularities. They should also
inform State or local law enforcement and
prosecuting authorities, if not advised by
the recipient, of any violation of law within
their jurisdiction
390
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environmental Protection Agency
Part 31, App. A
(5) Advise the recipient of audits that
have been found not to have met the re-
quirements set forth in this Circular In
such instances, the recipient will be expect-
ed to work with the auditor to take correc-
tive action. If corrective actions not taken.
the cognizant agency shall notify the recipi-
ent and Federal awarding agencies of the
facts and make recommendations for follow-
up action. Major inadequacies or repetitive
substandard performance of independent
auditors shall be referred to appropriate
professional bodies for disciplinary action.
<6) Coordinate, to the extent practicable.
audits m&de by or for Federal agencies that
are m addition to the audits made pursuant
to this Circular, so that the additional
audits build up such audits.
(7) Oversee the resolution of audit find-
ings that affect the programs of more than
one agency.
12. Illegal acts or irregularities. If the
auditor becomes aware of illegal acts or
other irregularities, prompt notice shall be
given to recipient management officials
above the level of involvement. (See also
program 13(a)(3) below for the auditor's re-
porting responsibilities.) The recipient, in
turn, shall promptly notify the cognizant
agency of the illegal acts or irregularities
and of proposed and actual actions, if any.
Illegal acts and irregularities include such
matters as conflicts of interest, falsification
of records or reports, and misappropriations
of funds or other assets.
13. Audit Reports. Audit reports must be
prepared at the completion of the audit. Re-
ports serve many needs of State and local
governments as well as meeting the require-
ments of the Single Audit Act.
a. The audit report shall state that the
audit was made in accordance with the pro-
visions of this Circular. The report shall be
made up of at least:
(1) The auditor's report on financial state-
ments and on a schedule of Federal assist-
ance: the financial statements; and a sched-
ule of Federal assistance, showing the total
expenditures for each Federal assitance pro-
gram as identified In the Catalog of Federal
Domestic Assistance. Federal programs or
grants that have not been assigned a catalog
number shall be identified under the cap-
tion "other Federal assistance."
(2) The author's report on the study and
evaluation of Internal control systems must
identify the organization's significant Inter-
nal accounting controls, and those controls
designed to provide reasonable assurance
that Federal programs are being managed
in compliance with laws and regulations. It
must also identify the controls that were
evaluated, the controls that were not evalu-
ated, and the material weaknesses identified
as a result of the evaluation.
(3) The auditor's report on compliance
containing:
—A statement of positive assurance with re-
spect to those items tested for compliance.
including compliance with law and regula-
tions pertaining to financial reports and
claims for advances and reimbursements:
—Negative assurance on those items not
tested;
—A summary of all instances of noncompli-
ance: and
—An identification of total amounts ques-
tioned, if any. for each Federal assistance
award, as a result of noncompliance.
b. The three parts of the audit report may
be bound into a single report, or presented
at the same time as separate documents.
c. All fraud abuse, or illegal .acts or indica-
tions of such acts, including all questioned
costs found as the result of these acts that
auditors become aware of, should normally
be covered in a separate written report sub-
mitted in accordance with paragraph 13 f.
d. In addition to the audit report, the re-
cipient shall provide comments on the find-
ings and recommendations in the report, in-
cluding a plan for corrective action taken or
planned and comments on the status of cor-
rective action taken on prior findings. If cor-
rective action is not necessary, a statement
describing the reason it is not should accom-
pany the audit report.
e. The reports shall be made available by
the State or local government for public in-
spection within 30 days after the completion
of the audit.
f. In accordance with generally accepted
government audit standards, reports shall
be submitted by the auditor to the organiza-
tion audited and to those requiring or ar-
ranging for the audit. In addition, the recip-
ient shall submit copies of the reports to
each Federal department or agency that
provided Federal assistance funds to the re-
cipient. Subrecipients shall submit copies to
recipients that provided them Federal as-
sistance funds. The reports shall be sent
within 30 days after the completion of the
audit, but no later than one year after the
end of the audit period unless a longer
period is agreed to with the cognizant
agency.
g. Recipients of more than S 100,000 in
Federal funds shall submit one copy of the
audit report within 30 days after Issuance to
a central clearinghouse to be designated by
the Office of Management and Budget. The
clearinghouse will keep completed audits on
file and follow up with State and local gov-
ernments that have not submitted required
audit reports.
h. Recipients shall keep audit reports on
file for three years from their issuance.
14. Audit Resolution. As provided in para-
graph 11. the cognizant agency shall be re-
sponsible for monitoring the resolution of
audit findings that affect the programs of
more than one Federal agency. Resolution
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ran 31, App. A
40 CFR Ch. I (7-1-88 Editioi
of findings that relate to the programs of a
single Federal agency will be the responsi-
bility of the recipient and that agency. Al-
ternate arrangements may be made on a
case-by-case basis by agreement among the
agencies concerned.
Resolution shall be made within six
months after receipt of the report by the
Federal departments and agencies. Correc-
tive action should proceed as rapidly as pos-
sible.
IS. Audit workpapers and reports. Work-
papers and reports shall be retained for a
minimum of three years from the date of
the audit report, unless the auditor is noti-
fied in writing by the cognizant agency to
extend the retention period. Audit work-
papers shall be made available upon request
to the cognizant agency or its designee or
the General Accounting Office, at the com-
pletion of the audit.
16. Audit Coats. The cost of audits made in
accordance with the provisions of this Cir-
cular are allowable charges to Federal as-
sistance programs.
a. The charges may be considered a direct
cost or an allocated indirect cost, deter-
mined In accordance with the provision of
Circular A-87. "Cost principles for State
and local governments."
b. Generally, the percentage of costs
charged to Federal assistance programs for
a single audit shall not exceed the percent-
age that Federal funds expended represent
of total funds expended by the recipient
during the fiscal year. The percentage may
be exceeded, however, if appropriate docu-
mentation demonstrates higher actual cost.
17. Sanctions. The Single Audit Act pro-
vides that no cost may be charged to Feder-
al assistance programs for audits required
by the Act that are not made In accordance
with this Circular. In cases of continued in-
ability or unwillingness to have a proper
audit. Federal agencies must consider other
appropriate sanctions including:
—Withholding a percentage of assistance
payments until the audit its completed
satisfactorily.
—Withholding or disallowing overhead
costs, and
—Suspending the Federal assistance agree-
ment until the audit is made.
18. Auditor Selection. In arranging for
audit services State and local governments
shall follow the procurement standards pre-
scribed by Attachment O of Circular A-102.
"Uniform requirements for grants to State
and local governments." The standards pro-
vide that while recipients are encouraged to
enter into Intergovernmental agreements
for audit and other services, analysis should
be made to determine whether it would be
more economical to purchase the services
from private firms. In Instances where use
of such intergovernmental agreements are
required by State statutes (e.g.. audit ser
ices) these statutes will take precedence.
19. Small and Minority Audit Firm
Small audit firms and audit firms owne
and controlled by socially and economicall
dlsadvantaged individuals shall have th>
maximum practicable opportunity to par
ticipate in contracts awarded to fulfill thi
requirements of this Circular. Recipients 01
Federal assistance shall take the following
steps to further this goal:
a. Assure that small audit firms and audit
firms owned and controlled by socially and
economically disadvantaged individuals are
used to the fullest extent practicable.
b. Make information on forthcoming op-
portunities available and arrange time-
frames for the audit so as to encourage and
facilitate participation by small audit firms
and audit firms owned and controlled by so-
cially and economically disadvantaged indi-
viduals.
c. Consider In the contract process wheth-
er firms competing for larger audits intend
to subcontract with small audit firms and
audit firms owned and controlled by socially
and economically disadvantaged individuals.
d. Encourage contracting with small audit
firms or audit firms owned and controlled
by socially and economically disadvantaged
individuals which have traditionally audited
government programs and. in such cases
where this is not possible, assure that these
firms are given consideration for audit sub-
contracting opportunities.
e. Encourage contracting with consorti-
ums of small audit firms as described in
paragraph (a) above when a contract is too
large for an individual small audit firm or
audit firm owned and controlled by socially
and economically disadvantaged individuals.
f. Use the services and assistance, as ap-
propriate, of such organizations as the
Small Business Administration in the solici-
tation and utilization of small audit firms or
audit firms owned and controlled by socially
and economically disadvantaged individuals.
20. Reporting. Each Federal agency will
report to the Director of OMB on or before
March 1. 1987. and annually thereafter on
the effectiveness of State and local govern-
ments in carrying out the provisions of this
Circular. The report must identify each
State or local government or Indian tribe
that, in the opinion of the agency, is failing
to comply with the Circular.
21. Regulations. Each Federal agency
shall include the provisions of this Circular
in its regulations implementing the Single
Audit Act.
22. Effective date. This Circular is effec-
tive upon publication and shall apply to
fiscal years of State and local governments
that begin after December 31. 1984. Earlier
Implementation is encouraged. However.
until it is implemented, the audit provisions
392
-------
Environmental Protection Agency
of Attachment P to Circular A-102 shall
continue to be observed.
23. Inquiries. All questions or Inquiries
should be addressed co Financial Manage-
ment Division. Office of Management and
Budget, telephone number 202/395-3993.
24. Sunset review date. This Circular shall
have an independent policy review to ascer-
tain Its effectiveness three years from the
date of issuance.
DAVID A. STOCKMAN.
Director.
ATTACHMENT—CIRCULAR A-128
Definition of Major Program as
Provided in Pub. L. 96-502
"Major Federal Assistance Program." for
State and local governments having Federal
assistance expenditures between $100.000
and $100.000.000. means any program for
which Federal expenditures during the ap-
plicable year exceed the larger of $308.000.
or 3 percent of such total expenditures.
Where total expenditures of Federal as-
sistance exceed $100.000.000. the following
criteria apply:
Part 32
Total expenditures of Federal
financial assistance lor all programs
More (nan
$100 million . .
Si billion
S2 tMliion
S3 Mbon
S4 billion
$5 billion .
S6 billion
Over $7 Minn
But lesa man
Si billion
$2 billion
S3 billon
$4 billion
SS (Mlion
S6 billion
$7 billion
Maxx Federal
assistance program
means any program
mat exceeds
SSmillwn
$4 million.
$7 million
$10 million
SI 3 million
SI 6 million
SI 9 million
S20 million
[51 FR 6353. Feb. 21. 1986. Redesignated at
53 FR 8076. Mar. 11. 1988]
EFFECTIVE DATE NOTE: At 53 FR 8076. Mar.
11. 1988. Appendix E to Part 30 was redesig-
nated as Appendix A to Part 31. effective
October 1.1988.
393
-------
APPENDIX F
-------
APPENDIX F
LIST OF EPA ASSISTANCE PROGRAMS
(CFDA NUMBER, TITLE, STATUTORY
AUTHORITY, GIGS PROGRAM CODE, AND
DELEGATION OF AUTHORITY NUMBER)
-------
CFDA PROGRAM TITLE PROGRAM DELEGATION OF
NO. STATUTORY AUTHORITY CODE AUTHORITY NO.
66.001 Air Pollution Control Program Support A 7-1
Clean Air Act: Sees. 105; 106
66.003 Air Pollution Control Manpower-Training T 7-35
Clean Air Act: Sec. 103(b)
66.006 Air Pollution Control — Technical Training T 7-35
Clean Air Act: Sec. 103
66.032 State Indoor Radon Program Kl 27-3
Toxic Substances Control Act: Sec. 306
(Indoor Radon Abatement Act)
66.419 Water Pollution Control State and Interstate I 2-3
Interstate Program Support
Clean Water Act: Sec. 106
66.432 State Public Water System Supervision F 9-11
Safe Drinking Water Act: Sec. 1443(a)
66.433 State Underground Water Source Protection (UIC) G 9-21
Safe Drinking Water Act: Sec. 1443(b)
66.435 Water Pollution Control— Lake Restoration CL 2-16
Cooperative Agreements
Clean Water Act: Sec. 314(b)
66.438 Construction Management Assistance C 2-74
Clean Water Act: Sec. 205(g)
-------
CFDA
NO.
PROGRAM TITLE
STATUTORY AUTHORITY
PROGRAM
CODE
DELEGATION OF
AUTHORITY NO.
66.454 Water Quality Management Planning C6
Clean Water Act: Sees. 205(j)(l) & (2)
66.456 National Estuary Program CE
Clean Water Act: Sec. 320(g) X
66.458 Capitalization Grants for State Revolving CS
Fund
Clean Water Act: Sees. 205(m), 601(a)
66.460 Nonpoint Source Implementation-Grants C9
Clean Water Act: Sees. 205(j)(5); 319(h)
66.461 Wetlands Protection—State Development Grants CD
Clean Water Act: Sec. 104
66.463 National Pollutant Discharge Elimination CP
System Related State Program Grants
Clean Water Act: Sec. 104
66.465 Wellhead Protection Program Grants WH
Safe Drinking Water Act: Sec. 1428
66.466 Chesapeake Bay Program CB
Clean Water Act: Sec. 104(b)(3)
66.500 Environmental Protection—Consolidated Research R
(Combination of 2 or more Research authorities.)
66.501 Air Pollution Control Research
Clean Air Act: Sees. 104; 617(b)
2-55
2-45
2-42
2-54
2-23
2-43
2-84
9-37
2-46
(identify delegs.
for all auths. used
in award)
7-61
-------
CFDA
NO.
PROGRAM TITLE
STATUTORY AUTHORITY
PROGRAM
CODE
DELEGATION OF
AUTHORITY NO.
66.502 Pesticides Control Research R
Federal Insecticide, Fungicide, and
Rodenticide Act: Sec. 20(a)
66.504 Solid Waste Disposal Research R
Solid Waste Disposal Act: Sec. 8001
66.505 Water Pollution Control—Research, Development, R
Demonstration S
Clean Water Act: Sees. 104; 105; 107; 113
66.506 Safe Drinking Water Research and Demonstration R
Safe Drinking Water Act: Sees. 1442; 1444 S
66.507 Toxic Substances Research R
Toxic Substances Control Act: Sec. 10
66.508 Senior Environmental Employment Program Q
Environmental Programs Assistance Act of 1984 QS
(NOTE: "Q" used when enrollee(s) assigned to EPA;
"QS" used when assigned to other Federal agency)
66.600 Environmental Protection Consolidated Grants— M
Program Support
Omnibus Territory Act: Title V
Toxic Substances Control Act: Sec. 28
Clean Air Act: Sec. 105
Solid Waste Disposal Act: Sees. 3011; 3012(c); 4008
Federal Insecticide, Fungicide, and Rodenticide Act: Sec. 23(a)
Safe Drinking Water Act: Sees. 1443(a); 1443(b)
Clean Water Act: Sec. 106
5-23
(pending)
(pending)
(pending)
(pending)
1-67
(identify
delegs.
for all
auths.
used in
award)
-------
CFDA PROGRAM TITLE PROGRAM DELEGATION OF
NO. STATUTORY AUTHORITY CODE AUTHORITY NO.
66.604 Environmental Equity EQ 1-86
Clean Water Act: Sec. 104(b)(3);
Safe Drinking Water Act: Sec. 1442(b)(3);
Solid Waste Disposal Act: Sec. 8001(a);
Clean Air Act: Sec. 103(b)(3);
Toxic Substances Control Act: Sec. 10(a);
Federal Insecticide, Fungicide, and Rodenticide Act: Sec. 20(a);
Comprehensive Environmental Response,
Compensation and Liability Act: Sec. lll(c)(10);
Marine Protection, Research and Sanctuaries Act: Sec. 203, and
National Environmental Education Act: Sec. 6
66.700 Consolidated Pesticide Compliance Monitoring E 5-27
and Program Cooperative Agreements
Federal Insecticide, Fungicide, and Rodenticide Act: Sec. 23(a)
66.701 Toxic Substances Compliance Monitoring Program K 12-9
Toxic Substances Control Act: Sec. 28
66.707 State Lead Program Grants PB (pending)
Toxic Substances Control Act: Sec. 404(g)
66.801 Hazardous Waste Management—State Program D 8-13
Support
Solid Waste Disposal Act: Sec. 3011
66.802 Hazardous Substance Response Trust Fund V 14-1-B
Comprehensive Environmental Response, 14-4-A
Compensation, and Liability Act: Sec. 104(d) 14-4-C
66.804 State Underground Storage Tanks Program L 8-14
Solid Waste Disposal Act: Sec.2007(f)(2)
-------
CFDA PROGRAM TITLE PROGRAM DELEGATION OF
NO. STATUTORY AUTHORITY CODE AUTHORITY NO.
66.805 Undergound Storage Tank Trust Fund Program L 8-38
Solid Waste Disposal Act: Sec.2007(f)(2)
66.806 Superfund Technical Assistance Grants for 1 14-24
Citizen Groups at Priority Sites
Comprehensive Environmental Response,
Compensation, and Liability Act: Sec.117(e)
66.807 Superfund Innovative Technology Evaluation S 14-18-A
Program
Comprehensive Environmental Response,
Compensation, and Liability Act: Sec. 311
66.808 Solid Waste Management Assistance XI 8-42
Solid Waste Disposal Act: Sec. 8001
66.809 Core Program Cooperative Agreements VC 14-4-C
Comprehensive Environmental Response, 14-4-A
Compensation, and Liability Act: Sec. 104
66.810 Emergency Planning & Community Right to Know X 12-25
Toxic Substances Control Act: Sees. 10 & 28 12-26
66.900 Pollution Prevention Grants Program NP 28-1
Pollution Prevention Act of 1990: Sec. 6605
Solid Waste Disposal Act: Sec. 8001
Clean Water Act: Sec. 104
Safe Drinking Water Act: Sec. 1442
Toxic Substances Control Act: Sec. 10
Clean Air Act: Sec. 103
-------
CFDA PROGRAM TITLE PROGRAM DELEGATION OF
NO. STATUTORY AUTHORITY CODE AUTHORITY NO.
66.925 State/EPA Data Management Financial Assistance X2 1-61
Program
Federal Insecticide, Fungicide, and Rodenticide Act: Sec. 20
Solid Waste Disposal Act: Sec. 8001
Clean Water Act: Sec. 104
Safe Drinking Water Act: Sec. 1442
Comprehensive Environmental Response, Compensation,
and Liability Act: Sec. 311
Toxic Substances Control Act: Sec. 10
Clean Air Act: Sec. 103
66.926 Indian Environmental General Assistance Program GA 1-71
Indian Environmental General Assistance Program Act
of 1992: Sec. 11
66.950 Environmental Education and Training Program NT 1-74
National Environmental Education Act: Sec. 5
66.951 Environmental Education Grants NE 1-74
National Environmental Education Act: Sec. 6
66.CAF Air Pollution Control Fellowships U 7-36
Clean Air Act: Sec. 103(b)(5)
66.CWF Water Pollution Control Fellowships U 2-40
Clean Water Act: Sec. 104(g)(3)(B)
66.CWT Water Pollution Control Professional Training T 2-39
Clean Water Act: Sec. 104(g)(3)(A) & (c)
-------
CFDA PROGRAM TITLE PROGRAM DELEGATION OF
NO. STATUTORY AUTHORITY CODE AUTHORITY NO.
66.CWT Water Pollution Control Technical Training T 2-41
Clean Water Act: Sees. 109; 110
66.DWF Drinking Water Fellowships U 9-10
Safe Drinking Water Act: Sec. 1442(b)(3)
66.DWT Drinking Water Training T 9-15
Safe Drinking Water Act: Sees. 1442(b)(3)(A)
and 1442(d)(1)
66.INT Interdisciplinary Training T (identify
Clean Air Act: Sec. 103 delegs.
Clean Water Act: Sec. 104 for all
Safe Drinking Water Act: Sec. 1442 training
Solid Waste Disposal Act: Sec. 8001 auths.
used in
award)
66.MIA Minority Institution Assistance Program (MIAP) U (identify
Fellowship delegs.
Clean Air Act: Sec. 103 for all
Clean Water Act: Sec. 104 auths.
Safe Drinking Water Act: Sec. 1442 used in
Solid Waste Disposal Act: Sec. 8001 award)
66.NMS National Network for Environmental Management U 1-75
(NNEMS) Fellowship
Clean Air Act: Sec. 103
Clean Water Act: Sec. 104
Safe Drinking Water Act: Sec. 1442
Solid Waste Disposal Act: Sec. 8001
-------
CFDA
NO.
PROGRAM TITLE
STATUTORY AUTHORITY
PROGRAM
CODE
DELEGATION OF
AUTHORITY NO.
66.RTX Radon Training
Toxic Substances Control Act: Sec. 308
66.SFT Superfund Training
Comprehensive Environmental Response,
Compensation, and Liability Act: Sec. 311(b)
66.SPX Environmental Protection Consolidated Grants—
(Combination of 2 or more statutory
authorities delegated to Headquarters AAs)
66.SRF Superfund Research (includes "Centers")
Comprehensive Environmental Response,
Compensation, and Liability Act: Sec.311
66.SSI Investigations, Surveys or Studies con-
sidered neither Research, Demonstration
nor Training
Clean Water Act: Sec. 104(b)(3)
Clean Water Act: Sec. 105; 107; 113
Clean Air Act: Sec. 617(b)
66.SWF Solid Waste Fellowship
Solid Waste Disposal Act: Sec. 8001
66.SWT Solid Waste Training
Solid Waste Disposal Act: Sec. 7007
u
27-1
14-18-A
(identify
delegs.
for all
auths.
used in
award)
14-18-B
(identify
delegs.
for all
auths.
used in
award)
8-17
8
-------
CFDA PROGRAM TITLE
NO. STATUTORY AUTHORITY
PROGRAM
CODE
DELEGATION OF
AUTHORITY NO.
66.TSD Toxic Substances Control Act Development
Toxic Substances Control Act: Sec. 10
OPPT — 12-22
(ORD —-pending)
-------
APPENDIX G
-------
APPENDIX G
GUIDE: "DELEGATIONS OF AUTHORITY
WHAT MANAGERS NEED TO KNOW"
-------
United States
Environmental Protection
Agency
Administration
and Resources
Management
EPA 202-F-94-002
February 1994
Delegations of
Authority —
What Managers Need
to Know
Office of Administration
Management and Organization Division
INSIDE
Background —
Delegated Authority ... 1
Delegated Authority vs.
General Authority .... 1
Delegation Floors 2
Common Management
Concerns 2
Delegation Principles &
Philosophies 3
Types of Limitations .... 4
Green Border
Review Process 4
Conclusion . 4
This Guide is designed to give you an
overview of EPA's delegations of
authority and to discuss your
responsibility in managing delegated
programs. A delegation of authority is
defined as the Administrator's charge to
senior Headquarters and Regional
managers to carry out statutory and
regulatory responsibilities on her behalf.
I. Background—
Delegated Authority
There are 555+ delegations in the
Agency's Delegations Manual.
Delegations are important for two
reasons. First, they are a legal record—
documenting which Agency officials
have authority to make decisions for the
Administrator. Second, delegations are
a management tool that establishes
operating conditions among
organizations and individuals as they
carry out authorities.
Figure 1 shows the distribution of 555+
delegations throughout the Agency.
Approximately 40% are held in
Headquarters, 29% in the Regions and
31% shared by Headquarters and the
Regions. Figure 1 also shows that EPA
is a fairly decentralized Agency, with
60% of its delegations going either solely
or on a shared basis to the Regions.
EPA's delegations tend to fall into one of
several categories, such as enforcement
actions, administrative decisions, state
environmental agreements/approvals,
Distribution of EPA s Delegations
Headquarters
224 - (40%)
Shared
Headquarters
& Regions
172 -(31%)
FIGURE 1
Based on data as of 1
certification/permits/registration
decisions, and awarding grants and
cooperative agreements Figure 2
shows that the largest number of
delegations result from the Clean Water
Act and the Clean Air Act
II. Delegated Authority vs.
General Authority
It's important to note that a delegation
of authority is not needed lor all work
that is performed by an office Delegated
authority generally refers to
decision-making that flows directly from
legislation or regulation General
authority stems from activities that an
office does as a result of its functions,
and can be found in functional and
mission statements, operating guidance,
and strategic plans.
Recy c le d/Recy c i a b !•
Printed with Soy/Canoia :n« c" pac«' "iat
contains ai least 50% ••cyciec' etc
-------
Delegations Sorted By Act
555)
3NON - STATUTORY
10
20 30 40 50
70 80 90 100
'Other Acts: Includes delegations from acts with fewer than 15 delegations.
Acts included are: PPA, EPCRA, IRAA, MPRSA, NCA. & OAPCA.
'Multi-Act: Delegations use multiple statutory authorities and cannot be
attributed to any one specific act.
'Non-Statutory: Includes delegations that are not based on legislation (i.e.,
General/Administrative delegations based on management decision-making
protocol, Executive Orders, Federal Register Notices, etc.).
FIGURE 2
To put it simply, a general authority is an activity that an office
performs—such as the analysis and work that is involved in
reviewing a permit. A delegated authority is an accountable
decision-making responsibility—such as approving or
denying a permit.
III. Delegation Floors
An action can be redelegated to various levels in an
organization, such as the Division Director or Branch
Chief level. A delegation floor is the lowest level in an
organization to which an action can be redelegated. This floor
is written into the delegation as a specific authorized level.
Delegatees may choose to have actions actually carried out
at a level above the authorized floor, but not below it.
As of March, I993, the majority of delegations are authorized
to be redelegated to the Division Director level (43%),
followed by 25% with no floor identified, and 15%that cannot
be redelegated. (In light of the Inspector General's concern
about delegation floors, the Agency now identifies a floor on
all delegations as they are written or revised.) Figure 3
indicates that Division Directors are the critical action and
decision-making level for the majority of delegated Agency
authorities.
IV. Common Management Concerns
As managers, delegated authorities are an
important part of the way you manage you-
organization and your programs. In addition to tht
technical and programmatic issues inherent in a
delegation, you also need to be aware of some
common management concerns.
(1) There Is considerable disagreement about
how to determine the lowest appropriate level for
redelegatlon In a highly decentralized
decision-making management structure.
— In EPA a significant amount of discretion and
autonomy is held in the Regional offices. It is
crucial to decide how much authority you wish to
delegate to the Regions.
— The level of delegation sometimes receives
Congressional interest. In general, Congress
prefers to keep decisions and accountability at
high levels in the Agency to ensure effective
oversight.
— In contrast, recent AA/RA Forums, the National
Performance Review, and individual Regions
have raised issues suggesting a need for
additional employee empowerment and
autonomy in making decisions under delegated
authority.
These tensions are symptomatic of the pull and
tug in a centralized vs. decentralized
management structure and are important for you
to keep in mind as you make your delegation
decisions.
Delegations Sorted By Floor
ffoul 0»l«g«tiont = 555.
Ovwwn Director
dMiuof 3 :0 9J
'Floors Lowest level to which a delegation can be redelegated, eg,
Branch Chief, Division Director.
2Oth«rB Includes delegations with floors identified as On-Site
Coordinators, National Program Managers, Senior Budget Officers.
or Human Resources Officers.
FIGURE 3
-------
DELEGATION PRINCIPLES & PHILOSOPHIES
EPA's delegation system is based on five core principles and philosophies:
(1) Act for the Administrator — Generally the Administrator only
delegates to one or more senior officials reporting directty to her to
act on her behalf. This means the AA/RAs, General Counsel, and
Associate Administrators.
(2) Right to Exercise or Withdraw — The Administrator and other
delegatees always retain the right to exercise or withdraw a
delegated authority at any time.
(3) Allocate Authority — Delegations allocate authority between
the Regions and Headquarters, as well as among Headquarters
Offices. As a way of deciding who should hold what authority, issues
mainly affecting Regional or field offices are delegated to Regional
Administrators, and issues that are multi-regional or of national
significance generally remain with the Administrator or are
delegated to senior officials at Headquarters.
(4) Authority at Lowest Level —When deciding to delegate
authorities, consider the following:
— Review enabling legislation—sometimes it dictates the level of
decision-making authority.
— Delegate an action to the lowest level that is appropriate lor
efficiency and effectiveness.
— Decide whether or not to redetegate authority to tower levels
based on areas of responsibility, the staffs technical expertise,
and political judgment then delegate as dose as possible to
where tie action takes place.
— Determine if an action has a high degree of importance and
visibility and, if so, retain authority at an appropriate level
capable of performing the task and making the appropriate
technical, political and policy judgments.
— Determine whether fuM or partial authorization is needed based
on the above criteria; decide who should exercise what parts of
the authority: and what should not be delegated.
(5) Dslsgatses Af» Accountable — Regardtess of the level to
which an action is redelegatad, you remain accountable for all
decisions or actions taken by your redetogatees in exercising the
authority. In the following chain of accountability, it is very important
for you to understand the level at which delegated authorities are
or should be exercised.
(2) Determining the appropriate level to carry out an
authority Is closely aligned with the notion of what
restrictions or limitations should be placed upon
officials as they carry out authorities. While limitations
are used most frequently with enforcement delegations,
the majority of EPA's delegations (approximately 64%)
have no restrictions limiting how officials exercise the
delegated authority (see Figure 4).
— Historically the Agency's Administrators, the recipients
of delegations, and the Management and Organization
Division (M&O) have strongly discouraged limitations
because they undermine the accountability and
effectiveness that a delegation is intended to provide.
Limitations result in "phantom"delegations, meaning that
the delegatee only appears to have the authority, but in
reality it is held by the office or person who must
ultimately approve the action.
Although delegatees want to receive authorities as
unencumbered as possible, National Program Managers
often want to maintain control or ensure national
consistency by placing limitations in delegations.
— Limitations, when necessary, establish operating
procedures between programs that must share
delegated authority.
— EPA officials who have been given a delegated authority
can only carry it out within the stated parameters of the
limitations included in the delegation.
(3) Timing Is an Important issue In managing your
delegations and programs. Delegation actions
submitted at the last minute force an expedited review
(or no review at all), limit input by essential parties
affected by the delegation, and create the potential for
vulnerability when the delegation Is exercised.
For example, regulations and permits are sometimes
approved and ready to be carried out before an office
realizes they do not have appropriate delegated authority
to approve the action.
Delegations Sorted By Limitations
(ToW O«lig«tton» - 555)
No Limitations
Notify
Consult
4 Concur
355
50 100 ISO 200 250 300 350 400
Number
'No specific restrictions on officials in exercising the delegated
authority.
2Requires informing other official(s) named when exercising the
authority.
3Requires discussing action with other official(s) named before
exercising the authority.
4Requires approval from other official(s) named before exercising the
authority.
FIGURE 4
-------
Delegations with limitations an separated
Into three types:
D Notify requires the delegatee to inform another
off kaal(s) when exercising the authority. Notify is used
in 21% of the delegations with limitations;
D Consult requires that an action official discuss the
action with another official(s) before exercising the
authority. Consul is used in 46% of the delegations
with limitations;
D Concur is the most rigid of all limitations, is used in
33% of the delegations with limitations, and requires
the delegatee to obtain the approval of another
off teial(s) before exercising the authority.
(4) A delegation of authority should be considered an
initial management step, not a final one. As a manager,
you must also control delegations after they are
redelegated. Several methods can be used:
— Consider crafting delegations to stipulate dollar levels or
types of actions as a way of control rather than delegating
broad authority or imposing unnecessary limitations. An
example are dollar limits used with some grant or
cooperative agreement delegations.
— Build a management infrastructure for your program
using a mix of applicable program guidance, plans,
evaluations, technical assistance, information sharing
systems, and other mechanisms. Don't rely solely on
delegations of authority for program management
directions.
— Systematically review your delegations on a regular
basis to make sure they are compatible with program
objectives. Periodic program evaluations and
conferences can help the National Program Manager
assure that the entire program, including the exercise of
delegated authority, is solid and consistent.
— Revise delegations as understanding and experience
with the authority grows in the organization.
— Show confidence in the redelegation decisions you
make. Once decisions are redelegated, it is important to
demonstrate trust, integrity, and consistency toward
redelegatees and the actions they take under the
redelegations.
— Exercise a delegated authority yourself when it is
appropriate for policy or political reasons to do so; and
withdraw an authority if it is being improperly carried out.
Before deciding to exercise or withdraw a delegation,
explore alternatives and discuss your concerns with the
redelegatee. Withdrawing a delegated authority should
be used as a last resort after other alternatives are
exhausted.
V. The Green Border Review Process
Before the Administrator approves a delegation of
authority, it is circulated through the Agency's "Green
Border" review process. This review process is the
mechanism for the Administrator to receive the advice and
counsel of her senior managers and to be sure that all legal
or operational issues have been raised before she makes her
decision. Green Border is also an Agencywide
consensus-building process, and is managed by the
Management and Organization Division (M&O) in the Office
of Administration and Resources Management. Your staff
has more detailed information about the Green Border review
process.
VI. Conclusion
r%elegations of authority are management tools that:
(1) Ease the burden of obligations for which the Administrator
is responsible by giving authority to senior managers to carry
out actions on her behalf. By delegating these
responsibilities to EPA senior officials, the Administrator has
more time to address other pressing issues affecting the
Agency; and
(2) Provide a legal record of Agency officials who carry out
authority on behalf of the Administrator. This becomes very
important when EPA actions are challenged in court.
If you are interested in learning about specific delegations in
your program, please consult the M&O Management Analyst
for your organization ((202) 260-5000) who will be happy to
assist you.
HOW EPA Gets it5
De i egateci Author i ty
-------
APPENDIX H
-------
APPENDIX H
40 CFR PART 33, "PROCUREMENT UNDER
ASSISTANCE AGREEMENTS"
-------
substance In conducting any activity with
the grant.
[54 FR 4962. Jan. 31. 1989]
PART 33—PROCUREMENT UNDER
ASSISTANCE AGREEMENTS
Sec.
33.001 Applicability and scope of this part.
33.005 Definitions.
Subport A—Procurement System Evaluation
33.105 Applicability and scope of this sub-
part.
33.110 Applicant and recipient certifica-
tion.
33.115 Procurement system review.
Subpart B—Procurement Requirements
33.205 Applicability and scope of this sub-
part.
33.210 Recipient responsibility.
33.211 Recipient reporting requirements.
33.220 Limitation on subagreement award.
33.225 Violations.
33.230 Competition.
33.235 Profit.
33.240 Small, minority, women's, and labor
surplus area businesses.
33.245 Privity of subagreement.
33.250 Documentation.
33.255 Specifications.
33.260 Intergovernmental agreements.
33.265 Bonding and Insurance.
33.270 Code of conduct.
33.275 Federal cost principles.
33.280 Payment to consultants.
33.285 Prohibited types of subagreements.
33.290 Cost and price considerations.
33.295 Subagreements awarded by a con-
tractor.
SMALL PURCHASES
33.305 Small purchase procurement.
33.310 Small purchase procedures.
33.315 Requirements for competition.
FORMAL ADVERTISING
advertising procurement
and solicitation of
33.405 Formal
method.
33.410 Public notice
bids.
33.415 Time for preparing bids.
33.420 Adequate bidding documents.
33.425 Public opening of bids.
33.430 Award to lowest, responsive, respon-
sible bidder.
* COMPETITIVE NEGOTIATION
33.505 Competitive negotiation procure-
ment method.
33.510 Public notice.
33515 Evaluation of proposals
33 520 Negotiation and award of subagree-
ment.
33.525 Optional selection procedure for ne-
gotiation and award of subagreements
for architectural and engineering serv-
ices.
NONCOMPETITIVE NEGOTIATION
33.605 Noncompetitive negotiation pro-
curement method.
Subpart C—[Reserved]
Subpart D—Retirements for Institutions of
Higher Education and Other Nonprofit Or-
ganizations
33.805 Applicability and scope of this sub-
part.
33.810 Nonapplicable subagreement
clauses.
33.815 Nonapplicable procurement provi-
sions.
33.820 Additional procurement require-
ments.
Subpart E—[Reserved]
Subpart F—Subagreement Provisions
33.1005 Applicability and scope of this sub-
part.
33.1010 Requirements for subagreement
clauses.
33.1015 Subagreement provisions clause.
33.1016 Labor standards provisions.
33.1019 Patents, data and copyrights
clause.
33.1020 Violating facilities clause.
33.1021 Energy efficiency clause.
33.1030 Model subagreement clauses.
Subpart G—Protests
33.1105 Applicability and scope of this sub-
part.
33.1110 Recipient protest procedures.
33.1115 Protest appeal.
33.1120 Limitations on protest appeals.
33.1125 Filing requirements.
33.1130 Review of protest appeals.
33.1140 Deferral of procurement action.
33.1145 Award official's review.
APPENDIX A—PROCEDURAL REQUIREMENTS
FOR RECIPIENTS WHO Do NOT CERTIFY
THEIR PROCUREMENT SYSTEMS. OR FOR
RECIPIENTS WHO HAVE THEIR PROCURE-
MENT CERTIFICATIONS REVOKED BY EPA
AUTHORITY: 7 U.S.C. 135 et seq.: 15 U.S.C.
2601 et seq.; 33 U.S.C. 1251 et seq.; 42 U.S.C.
241. 242b. 243. 246. 300J-1. 300J-2. 300J-3.
1857 et seq.. 6901 et seq.; and 42 U.S.C. 9601
et seq.
391
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SOURCE: 48 FR 12926. Mar. 28. 1983. unless
otherwise noted.
933.001 Applicability and scope of this
part.
(a) This part applies to all assistance
agreements awarded on or after the
effective date of this part. For assist-
ance agreements awarded before the
effective date, this part will apply only
to those procurement actions initiated
by the recipient on or after the date
the recipient complies with the self-
certification requirements in §33.110
of this part.
(b) This part:
(1) Describes EPA's procurement
system evaluation process.
(2) Identifies the minimum require-
ments for the procurement of sup-
plies, services, and construction under
EPA assistance agreements.
(3) Identifies an additional specifica-
tion requirement for procurement
under assistance agreements for the
construction of treatment works
awarded under 40 CFR Part 35, Sub-
parts E and I.
(4) Identifies the procurement
standards that institutions of higher
education and other nonprofit organi-
zations must follow.
(5) Identifies the provisions that re-
cipients of EPA assistance agreements
must include in their subagreements.
(6) Describes the procedures that
EPA will use to handle protest appeals
concerning the award of a subagree-
ment by the recipient of an EPA as-
sistance agreement.
(c) This pan does not apply to work
beyond the scope of the project for
which an assistance agreement is
awarded (i.e.. ineligible work).
(d) This part does not apply to ex-
penses for services for which the recip-
ient will receive an allowance or a po-
tential recipient will receive an ad-
vance of an allowance under 40 CFR
Part 35. Subpart I.
(e) This part supplements the re-
quirements in:
(1) 40 CFR Part 30 "General Regula-
tion for Assistance Programs," and
(2) 40 CFR Part 32, "Debarments
and Suspensions under EPA Assist-
ance Programs."
(f) The following types of recipients
must comply with the specified sub-
parts in this part:
(1) Recipients of assistance agree-
ments for the construction of treat-
ment works awarded under 40 CFR
Part 35, Subparts E and I, must follow
the requirements in Subparts A. B. C.
F and G.
(2) Recipients of remedial action co-
operative agreements under the Com-
prehensive Environmental Response.
Compensation, Liability Act of 1980
(Superfund 42 U.S.C. 6901 et seq.)
must follow the requirements in Sub-
parts A, B, E, F and G.
(3) State and local government re-
cipients for other than construction
grants and CERCLA remedial action
cooperative agreements must follow
the requirements in Subparts A, B. F
andG.
(4) Institutions of higher education.
hospitals, and other nonprofit organi-
zations must follow the requirements
in Subparts A, B. D and G.
(g) In the construction of treatment
works program under the Clean Water
Act (33 U.S.C. 1251 et. seq.), it is EPA's
policy to delegate determinations on
individual projects to State agencies to
the maximum extent possible (see 40
CFR Part 35. Subpart F). This part
uses the term "award official." To the
extent that the award official for a
treatment works assistance agreement
delegates responsibility for determin-
ing compliance with the requirements
of this part (except for § 33.115 "Pro-
curement system review," and Subpart
G "Protests") to a State agency under
a delegation agreement (40 CFR
35.1130), the term "award official"
may be read "State agency."
(h) This part applies to a grant
awarded under 40 CFR Part 35 Sub-
part E only if the recipient elects to
follow the requirements in this part. If
the recipient of a Subpart E grant
does not elect to follow the require-
ments in this part, it is subject to the
procurement requirements in 40 CFK
Subpart E.
[48 FR 12926. Mar. 28. 1983. 48 FR 30364.
July 1. 1983)
392
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833.005 Definitions.
. j Words and terms not defined
vJiow shall have the meaning given to
them in 40 CFR Part 30 and Part 35.
(b) As used in this part, the follow-
ing words and terms mean:
Architectural or engineering (A/E)
services. Consultation, investigations;
reports, or services for design-type
nrojects within the scope of the prac-
tice of architecture or professional en-
eineering as defined by the laws of the
State or territory in which the recipi-
ent is located.
Construction. Erection, building, al-
teration, remodeling, improvement, or
extension of buildings, structures or
other property. Construction also in-
cludes remedial actions in response to
a release, or a threat of a release, of a
hazardous substance into the environ-
ment as determined by the Compre-
hensive Environmental Response,
Compensation, and Liability Act of
1980.
Contractor. Any party to whom a re-
cipient awards a subagreement.
Cost analysis. The review and eval-
uation of each element of subagree-
ment cost to determine reasonable-
ness, allocability and allowability.
Intergovernmental Agreement. Any
written agreement between units of
government under which one public
agency performs duties for or in con-
cert with another public agency using
EPA assistance. This includes substate
and interagency agreements.
Minority business enterprise. A mi-
nority business enterprise is a business
which is: (1) Certified as socially and
economically disadvantaged by the
Small Business Administration. (2)
certified as a minority business enter-
prise by a State or Federal agency, or
(3) an independent business concern
which is at least 51 percent owned and
controlled by minority group
member(s). A minority group member
is an individual who is a citizen of the
United States and one of the follow-
ing:
Ci) Black American;
(ii) Hispanic American (with origins
from Puerto Rico. Mexico, Cuba.
South or Central America);
-------
women who also control and operate
it. Determination of whether a busi-
ness is at least 51 percent owned by a
woman or women shall be made with-
out regard to community property
laws. For example, an otherwise quali-
fied WBE which is 51 percent owned
by a married woman in a community
property state will not be disqualified
because her husband has a 50 percent
interest in her share. Similarly, a busi-
ness which is 51 percent owned by a
married man and 49 percent owned by
an unmarried woman will not become
a qualified WBE by virtue of his wife's
50 percent interest in his share of the
business.
Subpart A—Procurement System
Evaluation
§33.105 Applicability and scope of this
subpart.
(a) This subpart applies to all recipi-
ents of EPA assistance agreements.
(b) For procurements involving EPA
funds, recipients shall use their own
procurement policies and procedures if
those policies and procedures reflect
applicable Federal, State, and local
laws and regulations, and at least meet
the requirements set forth in this
part.
(c) This subpart describes when EPA
will review the recipient's procure-
ment practices.
§33.110 Applicant and recipient certifica-
tion.
(a) It is the applicant's and recipi-
ent's responsibility to evaluate its own
procurement system and to determine
whether its system meets the applica-
ble requirements in this part (see
§ 33.001).
(b) After evaluating its procurement
system, the applicant or recipient will
complete the "Procurement System
Certification" (EPA Form 5700-48).
The applicant or recipient will either
certify that:
(1) Its system will meet the intent of
all the requirements in this part
before any procurement action with
EPA assistance is undertaken, or
(2) Its current system does not meet
the intent of the requirements of this
part and. therefore, the applicant will
follow the requirements of 40 CFR
Part 33 and allow EPA preaward
review of proposed procurement ac-
tions that will use EPA funds. The c.d-
ditional requirements for EPA review
and approval are contained in Appen-
dix A to this part.
(c) The applicant must submit the
signed certification form with the as-
sistance application to the award offi-
cial.
(d) The certification will be valid for
two years or for the length of the
project period specified in the assist-
ance agreement, whichever is greater,
unless the recipient substantially re-
vises its procurement system or the
award official determines that the re-
cipient is not following the intent of
the requirements in this part (see
§33.115(b)). If the recipient substan-
tially revises its procurement system,
the recipient must re-evaluate its
system and submit a revised EPA
Form 5700-48.
(e) Even when a recipient certifies
its procurement system, the EPA
award official retains the authority
stated in:
(1) Section 33.210(h) "Recipient's
procurement responsibilities," which
requires the recipient to receive the
award official's prior written approval
if the recipient wants to use an inno-
vative procurement method.
(2) Section 33.211 "Recipient report-
ing requirements," which requires the
award official to notify the Depart-
ment of Labor of certain construction
subagreement awards, and obtain all
bid or offer tabulations,
(3) Section 33.60S(d) "Noncompeti-
tive negotiation procurement
method," to authorize a noncompeti-
tive award.
(4) Section 33.820(b) "Additional
procurement requirements," which re-
quires the award official's prior ap-
proval for a sole source award over
$10,000 by an institute of higher edu-
cation or other nonprofit organization,
(5) Subpart G "Protests."
C48 FR 12926. Mar. 28, 1983; 48 FR 30364.
July 1. 1983, as amended at S3 FR 8077.
Mar. 11. 1988]
§ 33.115 Procurement system review.
(a) EPA will not substitute its judg-
ment for that of the recipient unless
-------
the matter is primarily a Federal con-
cern.
(b) Even if a recipient has a certified
procurement system, EPA reserves the
right to review a recipient's procure-
ment system or procurement action
ur.der an assistance agreement:
(1) To determine if the recipient is
following the procurement require-
ments in this part; or
(2) When there is sufficient reason
to believe that the recipient's system
may be unacceptable based on:
(i) Information concerning the
review or certification of the recipi-
ent's procurement system or actions
by other Federal agencies or Congress;
(ii) Information from the recipient's
cognizant audit agency;
(iii) Information from State agencies
and organizations independent of the
recipient's procurement activity;
(iv) Recipient responses to the pro-
curement system certification form;
(v) Previous EPA experience with
the recipient; or
(vi) Information from contractors or
prospective contractors.
(c) If the award official determines
that the recipient is not following the
procurement requirements it certified
it would follow, the award official
shall revoke the recipient's certifica-
tion and:
(1) Require that the recipient follow
the procurement requirements in this
part, including Appendix A. for future
procurement actions and. if appropri-
ate.
(2) Apply the sanctions in 40 CFR
Part 30.
(d) The recipient may recertify its
procurement system if it shows the
award official that it has corrected the
procurement deficiencies noted by the
award official, and the award official
accepts the recertification.
Subpart B—Procurement
Requirements
§33.205 Applicability and scope of this
aubpart.
This subpart contains:
(a) The recipient's and EPA's re-
sponsibilities, and
-------
(a) Name, address, telephone
number and employee identification
number of the construction contrac-
tor,
(b) Amount of the award,
(c) Estimated starting and comple-
tion dates,
(d) Project number, name and site
location of the project, and
(e) Copy of the tabulations of bids or
offers and the name of each bidder or
offerer.
[43 FR 12926, Mar. 28, 1983; 48 FR 30364.
July 1,1983]
§33.220 Limitation
award.
of subagreement
(a) The recipient shall award suba-
greements only to responsible contrac-
tors that possess the potential ability
to perform successfully under the
terms and conditions of a proposed
procurement. A responsible contractor
Ls one that has:
(1) Financial resources, technical
qualifications, experience, organiza-
tion and facilities adequate to carry
out the project, or a demonstrated
ability to obtain these;
(2) Resources to meet the comple-
tion schedule contained in the suba-
greeznent;
(3) A satisfactory performance
record for completion of subagree-
ments;
(4) Accounting and auditing proce-
dures adequate to control property,
funds and assets, as required in this
part and 40 CFR Part 30; and
(5) Demonstrated compliance or will-
ingness to comply with the civil rights,
equal employment opportunity, labor
law and other statutory requirements
under 40 CFR Part 30.
(b) The recipient shall not make
awards to contractors who have been
suspended, debarred, or voluntarily ex-
cluded under 40 CFR Part 32 nor shall
it permit any portion of the work re-
quired by the subagreement to be per-
formed at any facility listed on the
EPA List of Violating Facilities (see 40
CFR Part 15).
§33.225 Violations.
The recipient shall refer violations
of law to the local, State or Federal
authority with jurisdiction over the
matter (see 40 CFR 30.610).
[48 FR 12926. Mar 28. 1983. 48 FR 30364
July 1. 1983]
§ 33.230 Competition.
(a) The recipient shall conduct all
procurement transactions in a manner
that provides maximum open and free
competition.
(b) Procurement practices shall not
unduly restrict or eliminate competi-
tion. Examples of practices considered
to be unduly restrictive include:
(1) Noncompetitive practices be-
tween firms;
(2) Organizational conflicts of inter-
est;
(3) Unnecessary experience and
bonding requirements;
(4) State or local laws, ordinances.
regulations or procedures which give
local or in-State bidders or proposers
preference over other bidders or pro-
posers in evaluating bids or proposals;
or
(5) Placing unreasonable require-
ments on firms in order for them to
qualify to do business.
(c) The recipient may use a prequali-
fication list(s) of persons, firms or
products if it:
(1) Updates its prequalified list(s) at
least every six months;
(2) Reviews and acts on each request
for prequallfication made more than
30 days before the closing date for re-
ceipt of proposals or bid opening; and
(3) Gives adequate public notice of
its prequalification procedure in ac-
cordance with the public notice proce-
dures in S 33.410 or § 33.510.
(d) A recipient may not use a pre-
qualified list(s) of persons or firms if
the procedure unnecessarily restricts
competition. However, this restriction
does not apply to § 33.525 "Optional
selection procedure for negotiation
and award of subagreements for archi-
tectural and engineering services."
EDITORIAL NOTE: For Class deviation docu-
ments affecting § 33.230. see the List of
CFR Sections Affected in the Finding Aids
section of this volume.
§33.235 Profit.
(a) Recipients must assure that only
fair and reasonable profits are paid to
contractors awarded subagreements
under EPA assistance agreements.
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(b) The recipient shall negotiate
profit as a separate element of price
for each subagreement in which there
is no price competition, or where price
is based on cost analysis.
(c) Where the recipient receives two
or more bids, profit included in a for-
mally advertised, competitively bid,
fixed price subagreement shall be con-
sidered reasonable.
(d) Off-the-shelf or catalog supplies
are exempt from this section.
§33.240 Small, minority, women's, and
labor surplus area businesses.
(a) It is EPA policy to award a fair
share of subagreements to small, mi-
nority, and women's businesses. The
recipient must take affirmative steps
to assure that small, minority, and
women's businesses are used when pos-
sible as sources of supplies, construc-
tion and services. Affirmative steps
shall include the following:
(1) Including qualified small, minori-
ty, and women's businesses on solicita-
tion lists;
(2) Assuring that small, minority,
and women's businesses are solicited
whenever they are potential sources;
(3) Dividing total requirements,
when economically feasible, into small
tasks or quantities to permit maxi-
mum participation of small, minority,
and women's businesses;
(4) Establishing delivery schedules.
where the requirements of the work
permit, which will encourage partici-
pation by small, minority, and
women's businesses;
(5) Using the services and assistance
of the Small Business Administration
and the Office of Minority Business
Enterprise of the U.S. Department of
Commerce, as appropriate; and
(6) If the contractor awards suba-
greements. requiring the contractor to
take the affirmative steps in para-
graphs (a) (1) through (5) of this sec-
tion.
(b) [Reserved]
(c) EPA encourages recipients to
procure supplies and services from
labor surplus area firms.
§ 33.245 Privity of subaffreement.
Neither EPA nor the United States
shall be a party to any subagreement
nor to any solicitation or request f«r
proposals.
§ 33.2V" Documentation.
(?.) ?r. zurement records ?nd files for
procurements in excess of S 10.000
shall include the following:
(1) Basis for contractor selection;
(2) Written justification for selection
of the procurement method;
(3) Written justification for use cf
any specification which does not pro-
vide for maximum free and open corr.-
petition;
(4) Written justification for the type
of subagreement;
(5) Basis for award cost or price, in-
cluding a copy of the cost or price
analysis made in accordance with
§ 33.290 and documentation of negotia-
tions; and
(6) Written justification for reject-
ing bids.
(b) Recipients must state the rea-
sons for rejecting any or all bids and
the Justification for procurements on
a noncompetitively negotiated basis
and make them available for public in-
spection.
EDITORIAL NOTE: For Class deviation docu-
ments affecting §33.250. see the List of
CFR Sections Affected in the Finding Aids
section of this volume.
§ 33.255 Specifications.
(a) Recipients must incorporate in
their specifications a clear and accu-
rate description of the technical re-
quirements for the material, product
or service to be procured. Such de-
scription shall not. in competitive pro-
curements, contain features which
unduly restrict competition, unless the
features are necessary to test or dem-
onstrate a specific thing or to provide
for necessary interchangeability of
parts and equipment or to promote in-
novative technologies. The description
shall include a statement of the quali-
tative nature of the material, product
or service to be procured and. when
necessary, shall set forth those mini-
mum essential characteristics and
standards to which it must conform if
it is to satisfy its intended use.
(b) The recipient shall avoid the use
of detailed product specifications if at
all possible.
397
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(c) When in the judgment of the re-
cipient it is impractical or uneconomi-
cal to make a clear and accurate de-
scription of the technical require-
ments, recipients may use a "brand
name or equal" description as a means
to define the performance or other sa-
lient requirements of a procurement.
The recipient need not establish the
existence of any source other than the
named brand. Recipients must clearly
state in the specification the salient
requirements of the named brand
which must be met by offerors. (An
additional specification requirement
for recipients of assistance for the con-
struction of treatment works under 40
CFR Part 35, Subparts E and I is con-
tained in §33.710.)
§ 33.260 Intergovernmental agreements.
(a) To foster greater economy and
efficiency, EPA encourages recipients
to enter into State and local intergov-
ernmental agreements for common
procurement or use of goods and serv-
ices.
(b) Although intergovermental
agreements are not subject to the re-
quirements in this part, all procure-
ments under intergovernmental agree-
ments are subject to the requirements
in this part except for procurements
that are:
(1) Incidental to the purpose of the
assistance agreement, and
(2) Made through a central public
procurement unit.
§ 33.265 Bonding and insurance.
(a) These requirements apply only
to recipients and contractors with su-
bagreements for construction.
(1) For construction subagreements
of $100,000 or less, the recipient shall
follow its own requirements relating to
bid guarantees, performance bonds
and payment bonds.
(2) For those subagreements more
than $100.000, the award official may
accept the recipient's bonding policy
and requirements provided the award
official makes a determination that
the Federal Government's interest is
adequately protected. If the award of-
flcial does not make that determina-
tion, the minimum bonding require-
ments for subagreements more than
$100,000 are:
u) A bid guarantee" from each
bidder equivalent to five percent of
the bid price. The 'bid guarantee'
shall Consist of a firm commitment
auch as a bid bond, certified check or
other negotiable instrument accompa-
nying a bid as assurance that the
bidder will, upon acceptance of the
bid. execute such contractual dxu-
ments as the EPA recipient may re-
quire within the time specified.
(ii) A "performance bond" for 100
percent of the subagreement price. A
"performance bond" is one that the
contractor executes in connection with
a subagreement to secure fulfillment
of all its obligations under such suba-
greement.
(iii) A "payment bond" for 100 per
cent of the subagreement price. A
"payment bond" is one that the con-
tractor executes in connection with a
subagreement to assure payment as re-
quired by law, to all persons supplying
labor and material in the execution of
the work provided for in the subagree-
ment.
(3) Where bonds are required in the
situations described above, bidders and
contractors shall obtain them from
companies holding certificaties of au-
thority as acceptable sureties (31 CFR
Part 223).
(b) Recipients and contractors must
follow the flood hazard area require-
ments of the Flood Disaster Protec-
tion Act of 1973 contained in 40 CFR
Pan 30.
§ 33.270 Code of conduct
(a) Recipients shall maintain a writ-
ten code or standards of conduct
which shall govern the performance of
its officers, employees, or agents en-
gaged in the award and administration
of subagreements supported by EPA
funds. No employee, officer or agent
of the recipient shall participate in
the selection, award or administration
of a subagreement supported by EPA
funds if a conflict of interest, real or
apparent, would be involved.
(b) Such a conflict would arise when:
(1) Any employee, officer or agent of
the recipient, any member of their im-
mediate families, or their partners
have a financial or other interest in
the firm selected for award, or
-------
(2) An organization which may re-
ceive or has been awarded a subagree-
ment employs, or is about to employ.
any person under paragraph (b)(l) of
this section.
(c) The recipient's officers, employ-
ees or agents shall neither solicit nor
accept gratuities, favors or anything of
monetary value from contractors, po-
tential contractors or other parties to
subagreements.
(d) Recipients may set minimum
rules where the financial interest is
not substantial or the gift is an unso-
licited item of nominal intrinsic value.
(e) To the extent permitted by State
or local law or regulations, the recipi-
ent's code of conduct shall provide for
penalties, sanctions or other discipli-
nary actions for violations of the code
by the recipient's officers, employees
or agents or by contractors or their
agents.
§ 33.275 Federal cost principles.
The following cost principles apply
to assistance agreements and suba-
greements:
(a) State and local governments
must comply with OMB Circular A-87
to determine allowable costs.
(b) Educational institutions must
comply with OMB Circular A-21 to de-
termine allowable costs and with OMB
Circular A-88 for indirect cost rates.
(c) Nonprofit institutions must
comply with OMB Circular A-122 to
determine allowable costs.
(d) All other recipients, contractors
and subcontractors must comply with
the cost principles contained in the
Federal Procurement Regulations (41
CFR 1-15.2 and. if appropriate, § 1-
15.4) to determine allowable costs.
§ 33.280 Payment to consultants.
(a) For all EPA assistance agree-
ments, EPA will limit its participation
in the salary rate (excluding overhead)
paid to individual consultants retained
by recipients or by a recipient's con-
tractors or subcontractors to the maxi-
mum daily rate for a GS-18. (Recipi-
ents may, however, pay consultants
more than this amount.) This limita-
tion applies to consultation services of
designated individuals with specialized
skills who are paid at a daily or hourly
rate. This rate does not include trans-
portation and subsistence costs for
travel performed: recipients will pay
these in accordance with their normal
travel reimbursement practices.
(b) Subagreements with firms for
services which are awarded using the
procurement requirements in this part
are not affected by this limitation.
[48 FR 12926. Mar. 28. 1983: 48 FR 30364.
July 1, 1983]
§ 33.285 Prohibited types of subagree-
The cost-plus-percentage-of-cost
(e.g., a multiplier which includes
profit) and the percentage-of-construc-
tion-cost types of subagreements shall
not be used.
§ 33.290 Cost and price considerations.
(a) The recipient shall conduct a
cost analysis of all negotiated change
orders and all negotiated subagree-
ments estimated to exceed $10.000.
(b) The recipient shall conduct a
price analysis of all formally adver-
tised procurements estimated to
exceed $10,000 if there are fewer than
three bidders.
(c) For negotiated procurement, con-
tractors and subcontractors shall
submit cost or pricing data in support
of their proposals to the recipient.
§ 33.295 Subagreements awarded by a con-
tractor.
A contractor must comply with the
following provisions in its award of su-
bagreements. (This section does not
apply to a supplier's procurement of
materials to produce equipment, mate-
rials and catalog, off-the-shelf, or
manufactured items.)
(a) 40 CFR Part 32 (Debarment and
Suspension Under EPA Assistance
Programs);
(b) The limitations on subagreement
award in § 33.220(a) (1) through (5);
(c) The profit requirements in
§ 33.235;
(d) The requirements for small, mi-
nority, women's and labor surplus area
businesses in S 33.240;
(e) The specification requirements of
§ 33.255;
(f) The requirements of Subpart C
of this part, if appropriate:
399
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(g) The Federal cost principles in
§ 33.275;
(h) The prohibited types of suba-
greements in § 33.285:
(i) The cost and price considerations
in § 33.290, and
(j) The applicable subagreement pro-
visions in Subpart F of this part.
SMALL PURCHASES
§ 33.305 Small purchase procurement.
If the aggregate amount involved in
any one procurement transaction does
not exceed $10,000, including estimat-
ed handling and freight charges, over-
head and profit, the recipient may use
small purchase procedures.
EDITORIAL NOTE: For Class deviation docu-
ments affecting S 33.305. see the List of
CFR Sections Affected in the Finding Aids
section of this volume.
§ 33.310 Small purchase procedures.
Small purchase procedures are rela-
tively simple procurement methods
that are sound and appropriate for a
procurement of services, supplies or
other property costing in the aggre-
gate not more than $10,000.
EDITORIAL NOTE: For Class deviation docu-
ments affecting 933.310. see the List of
CFR Sections Affected in the Finding Aids
section of this volume.
§ 33.315 Requirements for competition.
(a) Recipients shall not divide a pro-
curement into smaller parts to avoid
the dollar limitation for competitive
procurement.
(b) Recipients shall obtain price or
rate quotations from an adequate
number of qualified sources.
FORMAL ADVERTISING
§33.405 Formal advertising procurement
method.
(a) The requirements in §533.405
through 33.430 apply to all formally
advertised subagreements in excess of
$10.000. Formal advertising means the
public solicitation of sealed bids and
the award of a subagreement based on
a fixed price (lump sum, unit price, or
a combination of the two) to the
lowest, responsive, responsible bidder.
(b) Forma) advertising requires at a
minimum:
(DA complete, adequate and realis-
tic specification or purchase descrip-
tion of what is required;
(2) Two or more responsible bidders
which are willing and able to compete
effectively for the recipient's business:
(3) A procurement that lends itself
to the award of a fixed-price subagree-
ment; and
(4) That the selection of the success-
ful bidder be made principally on the
basis of price.
§33.410 Public notice and solicitation of
bids.
The recipient shall give adequate
public notice of the solicitation, invit-
ing bids and stating when and how the
bidding documents may be obtained or
examined.
§ 33.415 Time for preparing bids.
The recipient must allow adequate
time between the date the public
notice is first published and the date
by which bids must be submitted.
§ 33.420 Adequate bidding documents.
Recipient's bidding documents shall
Include:
(a) A complete statement of work to
be performed including, where appro-
priate, design drawings and specifica-
tions and the required performance
schedule;
(b) The terms and conditions of the
subagreement to be awarded, includ-
ing payment, delivery schedules, point
of delivery and acceptance criteria;
(c) A clear explanation of the recipi-
ent's method of bidding and the
method of evaluating bid prices, and
its basis and method for awarding the
subagreement;
(d) Any other responsibility require-
ments or evaluation criteria which the
recipient will use in evaluating bid-
ders;
(e) The prevailing wage determina-
tion, made under the Davis-Bacon Act,
If applicable; and
(f) The deadline and place to submit
bids and a copy of § 33.295. Subparts F
and G and. if appropriate. EPA Form
5720-4 "Labor Standard Provisions for
Federally Assisted Construction Con-
tracts."
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[48 FR 12926. Mar 28. 1983. 48 FR 30364.
July 1. 19831
§ 33.425 Public opening of bids.
The recipient shall publicly open
bids at the place, date and time an-
nounced in the bidding documents.
§33.430 Award to the lowest, responsive,
responsible bidder.
(a) The recipient shall evaluate all
bids in accordance with the methods
and criteria in the bidding documents.
(b) The recipient shall award a
fixed-price subagreement to the
lowest, responsive, responsible bidder.
Where specified in the bidding docu-
ments, recipients shall consider factors
such as discounts, transportation costs
and life cycle costs to determine the
low bid. Payments discounts may be
used to determine the low bid only
when prior experience of the recipient
indicates that it generally accepts such
discounts.
(c) The recipient may reject all bids
only when it has sound, documented
business reasons which are in the best
interest of the program for which EPA
assistance is awarded (see § 33.250
"Documentation").
COMPETITIVE NEGOTIATION
§33.505 Competitive negotiation procure-
ment method.
(a) The requirements in §§33.505
through 33.525 apply to all competi-
tively negotiated subagreements in
excess of $10,000.
(b) Recipients may use competitive
negotiation only if conditions are not
appropriate for the use of the formal
advertising method of procurement
(see § 33.405).
§33.510 Public notice.
(a) The recipient must give adequate
public notice for competitively negoti-
ated procurements.
(b) The notice of a request for pro-
posals must state how to obtain associ-
ated documents, including a copy of
§ 33.295, Subparts F and G, the basis
for subagreement award, and, if appro-
priate, EPA Form 5720-4 "Labor
Standard Provisions for Federally As-
sisted Construction Contracts."
(c) Requests for proposals must, be
written, contain enough information
to enable a prospective offeror to pre-
pare a proposal, contain all evaluation
criteria and the relative importance
attached to each, and clearly state the
deadline and place to submit propos-
als.
[48 FR 12926. Mar. 28. 1983, 48 FR 30364.
July 1. 1983]
§33.515 Evaluation of proposals.
(a) Recipients must uniformly and
objectively evaluate all proposals sub-
mitted in response to the request for
proposals.
(b) Recipients must base their deter-
minations of qualified offerers and ac-
ceptable proposals solely on the eval-
uation criteria stated in the request
for proposals.
§33.520 Negotiation and award of sub-
agreement.
(a) Unless the request for proposals
states that award may be based on ini-
tial offers alone, the recipient must
conduct meaningful negotiations with
the best qualified offerers with accept-
able proposals within the competitive
range, and permit revisions to obtain
best and final offers. The best quali-
fied offerors must have equal opportu-
nities to negotiate or revise their pro-
posals. During negotiations, the recipi-
ent must not disclose the indentity of
competing offerers or any information
from competing proposals.
(b) The recipient must award the
subagreement to the responsible of-
feror whose proposal is determined in
writing to be the most advantageous
to the recipient, taking into consider-
ation price and other evaluation crite-
ria set forth in the request for propos-
als.
(c) The recipient must promptly
notify unsuccessful offerors that their
proposals were rejected.
(d) The recipient must document its
procurement file to indicate how pro-
posals were evaluated, what factors
were used to determine the best quali-
fied offerors within the competitive
range, and what factors were used to
determine the subagreement award
[48 FR 12926. Mar. 28. 1983. 48 FR 30364.
July 1. 1983)
401
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33.525 Optional selection procedure Tor
negotiation and award of subagrec-
ments for architectural and engineer-
ing services.
(a) The recipient may evaluate and
?lect an architect or engineer using
ne procedures in this section in place
f the procedures in § 33.520, "Negoti-
tion and award of subagreement."
(b) The recipient may use either a
requalified list developed in accord-
nee with § 33.230(c) or responses to
^quests for statement of qualifica-
ons to determine the most technical-
/ qualified architects or engineers.
(c) After selecting and ranking the
lost qualified architects or engineers,
ie recipient will request technical
roposals from those architects or en-
ineers and inform them of the eval-
ation criteria the recipient will use to
ink the proposals.
(d) The recipient shall then select
nd determine, in writing, the best
jchnical proposal.
(e) After selecting the best proposal.
'ie recipient shall attempt to negoti-
te fair and reasonable compensation
•ith that offerer.
(f) If the recipient and the offerer of
ic best proposal cannot agree on the
mount of compensation, the recipient
nail formally terminate negotiations
ith that offerer. The recipient shall
Hen negotiate with the offerer with
hie next best proposal. This process
'ill continue until the recipient
caches agreement on compensation
rith an offerer with an acceptable
roposal. Once the recipient termi-
ates negotiations with an offerer, the
ecipient cannot go back and renegoti-
te with that offerer.
18 FR 12926, Mar. 28. 1983; 48 FR 30364.
uly 1. 19831
NONCOMPETITIVE NEGOTIATION
33.605 Noncompetitive negotiation pro-
curement method.
Recipients may use noncompetitive
negotiation to award a subagreement
f the other three procurement meth-
ds are inappropriate because:
(a) The item is available only from a
ingle source;
(b) A public exigency or emergency
xists and the urgency for the require-
ment will not permit a delay incident
to competitive procurement;
(c) After solicitation from a number
of sources, competition is inadequate-
or
(d) The EPA award official author-
izes noncompetitive negotiation, sub-
ject to the limitation in § 33.715(a)(2).
Subpart C—[Reserved]
Subpart D—Requirements for Institu-
tion* of Higher Education and
Other Nonprofit Organizations
§33.805 Applicability and scope of this
subpart.
Recipients who are subject to the
provisions of OMB Circular A-110.
"Grants and Agreements with Institu-
tions of Higher Education. Hospitals,
and Other Nonprofit Organizations"
are not subject to all of the require-
ments in this part.
§ 33.810 Nonapplicable
clauses.
subagreement
The following clauses in Subpart F
of this part do not apply to institu-
tions of higher education and other
nonprofit organizations:
(a) Energy efficiency (§ 33.1021):
(b) Changes (§33.1030.3);
(c) Differing site conditions
(§33.1030,4); and
(d) Price reduction for defective cost
or pricing data (§ 33.1030,8).
[48 FR 12926. Mar. 28. 1983; 48 FR 30365.
July 1. 1983]
§33.815 Nonapplicable procurement pro-
visions.
The following procurement provi-
sions do not apply to institutions of
higher education and other nonprofit
organizations:
(a) Subparts C and E;
(b) Sections 33.405 through 33.430
'' Formal advertising;"
(c) Sections 33.505 through 33.525
"Competitive negotiation;"
(d) Section 33.605 "Noncompetitive
negotiation" (see § 33.820:
(e) The requirement in § 33.270(a)
"Code of conduct" to have a written
code of conduct;
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(f) The provisions of § 33.240 "Small.
minority, women's, and labor surplus
area businesses" which:
(1) Encourage the award of a fair
share of contracts to women's and
labor surplus area businesses;
(2) Require the specific affirmative
action steps in § 33.240(a)(l) through
(a)(6); however, nonprofit organiza-
tions are required to make positive ef-
forts to use small businesses and mi-
nority owned businesses as sources of
supplies and services;
(g) Subpart G "Protests."
§33.820 Additional procurement require-
ments.
(a) Recipients must exclude contrac-
tors that develop or draft specifica-
tions, requirements, statements of
work, invitation for bids, or requests
for proposals from competing for
awards resulting from the prior effort.
(b) For all proposed sole source sub-
agreements and where only one bid or
proposal is received, the recipient
must request the award official's prior
approval to award the subagreement if
the aggregate expenditure is expected
to exceed $10,000.
Subpart E—[Rosorved]
Subpart F—Subagre«mont Provisions
§33.1005 Applicability and scope of this
subpart
(a) This subpart applies to all EPA
recipients and describes the minimum
content of each subagreement (con-
tract and subcontract).
(b) Nothing in this subpart prohibits
a recipient from requiring more assur-
ances, guarantees, or indemnity or
other contractural requirements from
any party to a subagreement.
§33.1010 Requirements for subagreement
clauses.
Recipients shall include clauses that
meet the requirements of §$33.1015
through 33.1021, and the appropriate
clauses in §33.1030, in each procure-
ment subagreement.
§33.1015 Subagreement provisions clause.
Each subagreement must include
provisions defining a sound and com-
plete agreement, including the:
(a) Nature, scope, and extent of
work to be performed;
(b) Timeframe for performance;
(c) Total cost of the subagreement:
and
(d) Payment provisions.
§ 33.1016 Labor standards provisions.
(This clause applies only when re-
quired by statute.) Recipients shall in-
clude a copy of EPA Form 5720-4
"Labor Standards Provisions for Fed-
erally Assisted Construction Con-
tracts" in each subagreement for con-
struction (as defined by the Secretary
of Labor). The form contains the
Davis-Bacon Act requirements (40
U.S.C. 276a—276a-7); the Copeland
Regulations (29 CFR Part 3); the Con-
tract Work Hours and Safety Stand-
ards Act—Overtime Compensation
(940 U.S.C. 327-333) and the nondis-
criminatlon provisions in Executive
Order 11246, as amended.
[48 FR 12926. Mar. 28. 1983; 48 FR 30365.
July 1.19831
§33.1019 Patents data and copyrights
clause.
Except for construction grant sub-
agreements, all subagreements shall
include notice of EPA requirements
and regulations pertaining to report-
ing and patent rights under any suba-
greement involving research, develop-
mental, experimental or demonstra-
tion work with respect to any discov-
ery or invention which arises or is de-
veloped in the conduct of work under
a subagreement. This notice shall also
include EPA requirements and regula-
tions pertaining to copyrights and
rights in data contained in 40 CFR
Part 30.
§ 33.1020 Violating facilities clause.
Subagreements in excess of $100,000
shall contain a provision which re-
quires contractor compliance with all
applicable standards, orders or re-
quirements issued under section 306 of
the Clean Air Act (42 U.S.C. 1857(h)).
section 508 of the Clean Water Act (33
U.S.C. 1368). Executive Order 11738.
-------
and EPA regulations (40 CFR Part 15)
which prohibit the use under nonex-
empt Federal contracts, grants or
loans of facilities included on the EPA
List of Violating Facilities.
§33.1021 [Reserved]
§ 33.1030 Model subagreement clauses.
Recipients must include, when ap-
propriate, the following clauses or
their equivalent in each subagree-
ment. Recipients may substitute other
terms for "recipient and" "contractor"
in their subagreements.
1. SUPERSESSION
The recipient and the contractor agree
that this and other appropriate clauses in
40 CFR 33.1030 apply to that work eligible
for EPA assistance to be performed under
this subagreement and that these clauses
supersede any conflicting provisions of this
subagreement.
2. PRIVITY OF SUBAGREEMENT
This subagreement is expected to be
funded in part with funds from the U.S. En-
vironmental Protection Agency. Neither the
United States nor any of its departments,
agencies or employees is, or will be. a party
to this subagreement or any lower tier sub-
agreement. This subagreement is subject to
regulations contained in 40 CFR Part 33 In
effect on the date of the assistance award
for this project.
3. SUSPENSION or WORK
The following clause applies only to con-
struction svbayreements. (a) The recipient
may order the contractor in writing to sus-
pend, delay or interrupt all or any part of
the work for such period of time as the re-
cipient may determine to be appropriate for
the convenience of the recipient.
(b) If the performance of all or any part
of the work is suspended, delayed or inter-
rupted for an unreasonable period of time
by an act of the recipient in administration
of this subagreement, or by the recipient's
failure to act within the time specified in
this subagreement (or if no time Is specified.
within a reasonable time), the recipient
shall make an adjustment for any increase
in the cost of performance of this subagree-
ment (excluding profit) necessarily caused
by such unreasonable suspension, delay or
interruption and modify the subagreement
in writing. However, no adjustment shall be
made under this clause for any suspension.
delay or interruption to the extent (1) that
performance would have been so suspended.
delayed or Interrupted by any other cause.
including the fault or negligence of the con-
tractor, or (2) for which an equitable adjusi-
ment is provided for or excluded under an>
other provision of this subagreement.
(c) No claim under this clause shall be al-
lowed (1) for any costs incurred more thar
20 days before the contractor notified the
recipient in writing of the act. or failure to
act. involved (this requirement does not
apply to a claim resulting from a suspension
order), and (2) unless the amount claimed is
asserted in writing as soon as practicable
after the termination of such suspension,
delay or interruption, but not later than the
date of final payment under the subagree-
ment.
4. TERMINATION
(a) This subagreement may be terminated
in whole or in part in writing by either
party in the event of substantial failure by
the other party to fulfill its obligations
under this subagreement through no fault
of the terminating party, provided that no
termination may be effected unless the
other party is given (1) not less than ten
(10) calendar days' written notice (delivered
by certified mail, return receipt requested)
of Intent to terminate, and (2) an opportuni-
ty for consultation with the terminating
party prior to termination.
(b) This subagreement may be terminated
in whole or in part in writing by the recipi-
ent for its convenience, provided that the
contractor is given (1) not less than ten (10)
calendar days' written notice (delivered by
certified mail, return receipt requested) of
intent to terminate, and (2) an opportune
for consultation with the terminating part>
prior to termination.
(c) If termination for default is effected
by the recipient, an equitable adjustment m
the price provided for in this subagreement
shall be made, but (1) no amount shall be al-
lowed for anticipated profit on unperformed
services or other work, and (2) any payment
due to the contractor at the time of termi-
nation may be adjusted to cover any addi-
tional costs to the recipient because of the
contractor's default. If termination for de-
fault is effected by the contractor, or if ter-
mination for convenience is effected by the
recipient, the equitable adjustment shall in-
clude a reasonable profit for services or
other work performed. The equitable ad
justment for any termination shall provide
for payment to the contractor for services
rendered and expenses incurred prior to the
termination, in addition to termination set-
tlement costs reasonably incurred by the
contractor relating to commitments which
had become firm prior to the termination
(d) Upon receipt of a termination action
under paragraphs (a) or (b) above, the con
tractor shall (1) promptly discontinue all af-
fected work (unless the notice directs other-
wise), and (2) deliver or otherwise make
-------
available to the recipient all data, drawings.
specifications, reports, estimates, summaries
and such other information and materials
as may have been accumulated by the con-
tractor in performing this subagreement.
whether completed or in process.
(e) Upon termination under paragraphs
(a) or (b) above, the recipient may take over
the work and may award another party a
subagreement to complete the work under
this subagreement.
(f) If. after termination for failure of the
contractor to fulfill contractual obligations,
it is determined that the contractor had not
failed to fulfill contractual obligations, the
termination shall be deemed to have been
for the convenience of the recipient. In such-
event, adjustment of the subagreement
price shall be made as provided in para-
graph (c) of this clause.
5. REMEDIES
Unless otherwise provided In this sub-
agreement, all claims, counter-claims, dis-
putes and other matters In question be-
tween the recipient and the contractor aris-
ing out of. or relating to. this subagreement
or the breach of it will be decided by arbi-
tration If the parties mutually agree, or in a
court of competent jurisdiction within the
State in which the recipient is located.
6. AUDIT: ACCESS TO RECORDS
(a) The contractor shall maintain books.
records, documents and other evidence di-
rectly pertinent to performance on EPA
funded work under this subagreement in ac-
cordance with generally accepted account-
ing principles and practices consistently ap-
plied, and 40 CFR Part 30 in effect on the
date of execution of this subagreement. The
contractor shall also maintain the financial
information and data used in the prepara-
tion or support of the cost submission re-
quired under 40 CFR 33.290 for any negoti-
ated subagreement or change order and a
copy of the cost summary submitted to the
recipient. The United States Environmental
Protection Agency, the Comptroller Gener-
al of the United States, the United States
Department of Labor, the recipient, and
(the State) or any of their authorized repre-
sentatives shall have access to all such
books, records, documents and other evi-
dence for the purpose of inspection, audit
and copying during normal business hours.
The contractor will provide proper facilities
for such access and inspection.
(b) If this is a formally advertised, com-
petitively awarded, fixed price subagree-
ment. the contractor agrees to make para-
graphs (a) through (g) of this clause appli-
cable to all negotiated change orders and
subagreement amendments affecting the
subagreement price. In the case of all other
types of prime subagreements. the contrac-
tor agrees to make paragraphs (a) through
(g) applicable to all subagreements he
awards in excess of $10.000. at any tier, and
to make paragraphs (a) through (g} of this
clause applicable to all change orders direct-
ly related to project performance.
(c) Audits conducted under this provision
shall be in accordance with generally ac-
cepted auditing uandards and with estab-
lished procedures and guidelines of the re-
viewing or audit agency(ies).
(d) The contractor agrees to disclose all
information and reports resulting from
access to record- under paragraphs (a) and
(b) of this clause to any of the agencies re-
ferred to in paragraph (a).
(e) Records under paragraphs (a) and (b)
above shall be maintained by the contractor
during perform? ice on EPA assisted work
under this subagreement and for the time
periods specified in 40 CFR Part 30. In addi-
tion, those records which relate to any con-
troversy arising under an EPA assistance
agreement, litigation, the settlement of
claims arising out of such performance or to
costs or items to which an audit exception
has been taken shall be maintained by the
contractor for the time periods specified in
40 CFR Part 30.
(f) Access to records is not limited to the
required retention periods. The authorized
representatives designated in paragraph (a)
of this clause shall have access to records at
any reasonable time for as long as the
records are maintained.
(g) This right of access clause applies to fi-
nancial records pertaining to all subagree-
ments (except formally advertised, competi-
tively awarded, fixed price subagreements)
and all subagreement change orders regard-
less of the type of subagreement. and all
subagreement amendments regardless of
the type of subagreement. In addition this
right of access applies to all records pertain-
ing to all subagreements. subagreement
change orders and subagreement amend-
ments:
(1) To the extent the records pertain di-
rectly to subagreement performance:
(2) If there is any indication that fraud.
gross abuse or corrupt practices may be in-
volved; or
(3) If the subagreement is terminated for
default or for convenience.
7. COVENANT AGAINST CONTINGENT FEES
The contractor assures that no person or
selling agency has been employed or re-
tained to solicit or secure this subagreement
upon an agreement or understanding for a
commission, percentage, brokerage or con-
tingent fee excepting bona fide employees
or bona fide established commercial or sell-
ing agencies maintained by the contractor
for the purpose of securing business. For
breach or violation of this assurance, the re-
-------
cipient shall have the right to annul this
agreement without habile or. at its discre-
tion, to deduct from the c 'bagreement price
or consideration, or otherwise recover the
full amount of such concussion, percent-
age, brokerage or contingent fee.
8. GRATUITIES
(a) If the recipient find:, after a notice and
hearing that the contractor or any of the
contractor's agents or representatives of-
fered or gave gratuities tin the form of en-
tertainment, gifts or otherwise) to any offi-
cial, employee or agent cf the recipient, the
State or EPA in an attempt to secure a sub-
agreement or favorable treatment in award-
ing, amending or making any determina-
tions related to the performance of this su-
bagreement. the recipient may. by written
notice to the contractor, terminate this sub-
agreement. The recipient may also pursue
other rights and remedies thai the law or
this subagreement provides. However, the
existence of the facts on - .iich the recipient
bases such findings shaii be in issue and
may be reviewed in proceedings under the
Remedies clause of this srt agreement.
(b) In the event this su. agreement Is ter-
minated as provided in - .ragraph (a), the
recipient may pursue tue same remedies
against the contractor as >t could pursue In
the event of a breach of the subagreement
by the contractor, and as a penalty, in addi-
tion to any other damages to which it may
be entitled by law. be entitled to exemplary
damages In an amount (a* determined by
the recipient) which shall be not less than
three nor more than ten times the costs the
contractor incurs in providing any such gra-
tuities to any such officer ir employee.
9. Responsibility of the Contractor
(a) The following clause applies only to
subagreements for services. (1) The contrac-
tor is responsible for the professional qual-
ity, technical accuracy, timely completion
and coordination of all designs, drawings.
specifications, reports and other services
furnished by the contractor under this sub-
agreement. If the subagreement involves en-
vironmental measurements or data genera-
tion, the contractor shall comply with EPA
quality assurance requirements in 40 CFR
30.503. The contractor shall, without addi-
tional compensation, correct or revise any
errors, omissions or other deficiencies in his
designs, drawings, specifications, reports
and other services.
(2) The contractor shall perform the pro-
fessional services necessary to accomplish
the work specified in this subagreement in
accordance with this subagreement and ap-
plicable EPA requirements in effect on the
date of execution of the assistance agree-
ment for this project.
(3) The owner's or EPA s appro.a! c'
drawings, designs, specifications repors
and incidental work or materials furnished
hereunder shall not in any way relieve the
contractor of responsibility for the techni-
cal adequacy of his work. Neither tne
owner's nor EPA's review, approval, accept
ance or payment for any of the services
shall be construed as a waiver of any rights
under this agreement or of any cause for
action arising out of the performance of this
subagreement.
(4) The contractor shall be. and shall
remain, liable in accordance with applicable
law for all damages to the owner or EPA
caused by the contractor's negligent per-
formance of any of the services furnished
under this subagreement. except for errors.
.missions or other deficiencies to the extent
attributable to tne owner, owner-furnished
data or any third party. The contractor
shall not be responsible for any time delays
in the project caused by circumstances
beyond the contractor's control.
(5) The contractor's obligations under this
clause are in addition to the contractor's
other express or Implied assurances under
this subagreement or State law and in no
way diminish any other rights that the
owner may have against the contractor for
faulty materials, equipment or work.
(b) The following clause applies only to
subagreements for construction. (1) The
contractor agrees to perform all work under
this subagreement In accordance with this
agreement's designs, drawings and specifica-
tions.
(2) The contractor guarantees for a period
of at least one (1) year from the date of sub-
stantial completion of the work that the
completed work is free from all defects due
to faulty materials, equipment or workman-
ship and that he shall promptly make what-
ever adjustments or corrections which may
be necessary to cure any defects, including
repairs of any damage to other parts of the
system resulting from such defects. The
owner shall promptly give notice to the con-
tractor of observed defects. In the event
that the contractor fails to make adjust-
ments, repairs, corrections or other work
made necessary by such defects, the owner
may do so and charge the contractor the
cost incurred. The performance bond shall
remain in full force and effect through the
guarantee period.
(3) The contractor's obligations under this
clause are In addition to the contractors
other express or Implied assurances under
this subagreement or State law and in no
way diminish any other rights that the
owner may have against the contractor for
faulty materials, equipment or work.
-------
10. FINAL PAYMENT
Upon satisfactory completion of the work
performed under this subagreement, as a
condition before final payment under this
subagreement or as a termination settle-
ment under this subagreement the contrac-
tor shall execute and deliver to the owner a
release of all claims against the owner aris-
ing under, or by virtue of. this subagree-
ment. except claims which are specifically
exempted by the contractor to be set forth
therein Unless otherwise provided in this
subagreement. by State law or otherwise ex-
pressly agreed to by the parties to this sub-
agreement, final payment under this sub-
agreement or settlement upon termination
ol this subagreement shall not constitute a
waiver of the owners claims against the
contractor or his sureties under this sub-
agreement or applicable performance and
payment bonds.
148 FR 12926. Mar 28. 1983: 48 FR 30365.
July 1. 1983. as amended at 53 FR 8077.
Mai. 11. 1988]
Subpart G—Protests
§33.1105 Applicability and scope of this
subpart.
This subpart sets forth EPA's ad-
ministrative process for the rapid reso-
lution of protest appeals filed with the
award official.
§ 33.1110 Recipient protest procedures.
(a) Recipients must establish their
own procedures for prompt consider-
ation of initial protests concerning
their solicitations or subagreement
awards. A "protest" is a written com-
plaint concerning the recipient's solici-
tation or award of a subagreement. It
must be filed with the recipient by a
party with a direct financial interest
adversely affected by a recipient's pro-
curement action (see §33.1130
"Review of protest appeal").
(b) The recipient should review each
protest received to determine whether
it is appropriate to defer the protested
procurement action.
-------
by the appropriate Counsel's office
within seven calendar days after the
adversely affected party receives the
recipient's determination of protest.
However, the adversely affected party
can meet the seven-day notice require-
ment by telegraphing the Counsel
within the seven-calendar-day period
of its intent to file a protest appeal,
provided the adversely affected party
submits a complete protest appeal
within seven calendar days of the date
it sends the telegram. If the seventh
day falls on a Saturday, Sunday or
holiday, the next working day shall be
the last day to submit a protest
appeal.
(e) Any party which submits a docu-
ment to the award official during the
course of a protest appeal must simul-
taneously furnish all other affected
parties with a copy of the document.
[48 FR 12926. Mar. 28. 1983; 48 FR 30365.
July 1, 1983]
§ 33.1130 Review of protest appeal.
(a) If the recipient does not receive
the initial protest before bid opening
or the closing date for receipt of pro-
posals, the award official may dismiss
as untimely any protest appeal based
upon alleged improprieties in the solic-
itation which were clearly apparent
before bid opening or before the dead-
line for receipt of initial proposals. In
negotiated procurements, protests of
alleged improprieties which were in-
corporated in a new solicitation must
have been received by the recipient by
the closing date for receipt of propos-
als for the new solicitation.
(b) In cases not involving impropri-
eties in the solicitation, the award offi-
cial may dismiss as untimely a protest
appeal if the adversely affected party
did not file the initial protest with the
recipient within seven calendar days
of the date the basis for the protest
was known or should have been
known, whichever is earlier.
§ 33.1140 Deferral of procurement action.
When the award official receives a
protest appeal and the recipient has
not deferred the procurement action
under § 33.1110(b), the award official
must promptly request that the recipi-
ent defer the protested procurement
action until the award official notifies
the recipient of the formal or informal
resolution of the appeal. The request
shall be limited to the award of the
subagreement or subitem which is the
basis of the protest appeal.
§ 33.1145 Award official's review.
(a) The award official may establish
rules of procedures or deadlines for
the submission of materials or the ar-
rangement of protest appeal confer-
ences.
(b) The award official may summari-
ly dismiss an appeal without proceed-
ings under this subpart if:
(1) The protest appeal is not re-
viewable, see § 33.1130, or addresses
issues other than those allowed under
§33.1120(b);
(2) The protester substantially fails
to comply with the procedural require-
ments of this subpart; or
(3) The protester does not agree to
the recipient's request for a reasonable
extension of the bid and bond period.
(c) The award official may summari-
ly deny a protest appeal without pro-
ceedings under this subpart if. after
considering the facts in a light most
favorable to the protester, the award
official believes that the protest lacks
merit.
(d) The award official will give both
the recipient and the protester, as well
as any other party with a financial in-
terest which may be adversely affected
by the determination of protest, an op-
portunity to present arguments in sup-
port of their views in writing or at a
conference.
(e) After the announced date for re-
ceipt of written arguments, the record
shall be closed.
(f) The award official shall review
the record considered by the recipient
and any other documents or argu-
ments presented by the parties to de-
termine whether the recipient has
complied with the procurement re-
quirements of this part and has a ra-
tional basis for its determination of
protest.
(g) The award official's determina-
tion shall constitute final EPA action
from which there shall be no further
administrative appeal. No party may
appeal an award official's determma-
-------
tion of appeal to the EPA Board of As-
sistance Appeals.
(h) Nothing in this subpart pre-
cludes the award official from review-
ing the recipient's procurement action.
(See §33.115.)
d) Noncomphance with the award
official's determination of protest
shall be cause for an action against
tne recipient under 40 CFR Part 30 or
32.
(j) If an appeal involves legal issues
not explicitly addressed by this part.
the award official shall resolve the
issue by referring to other protest de-
terminations under this section and
decisions of the Comptroller General
of the United States or of the Federal
courts addressing Federal require-
ments comparable to procurement re-
quirements of this part.
newspapers, or publications 01 general c-rc--
lation over a reasonable area for at least 30
days before bid opening.
(5) To comply with 533510. "Adequate
public notice." the recipient must publish
the notice in professional journals, newspa-
pers, or publications of general circulation
over a reasonable area for at least 30 da>s
before the deadline for receipt of proposals
The recipient may use posted public notices
or written notification directed to interested
persons, firms or professional organizations
[48 FR 12926. Mar. 28. 1983. 48 FR 30365
July 1. 19831
EDITORIAL NOTE: For Class deviation docu-
ments affecting Part 33, Appendix A. see
the List of CFR Sections Affected in the
Finding Aids section of this volume
APPENDIX A— PROCEDURAL REQUIRE-
MENTS FOR RECIPIENTS WHO DO
NOT CERTIFY THEIR PROCUREMENT
SYSTEMS. OR FOR RECIPIENTS WHO
HAVE THEIR PROCUREMENT CERTIFI-
CATIONS REVOKED BY EPA
(a) The following procedural requirements
apply to recipients who:
(1) Do not certify to EPA that their pro-
curement system meets the minimum pro-
curement requirements in this part, or
(2) Have their procurement certification
revoked by the award official, as stated in
533.115(0.
To comply with 5 33.250. "Documenta-
tion. ' the recipient must submit to the
award official, unless he instructs otherwise.
the records required by this section.
(2) To comply with 533.290. "Cost and
Price considerations." the recipient's con-
tractors and subcontractors must submit
ineir cost or price data on EPA Form 5700-
1,' 'Cost or Price Summary Format for
aubagreements Under U.S. EPA Grants." or
n another format which provides informa-
to that reqmred fay EPA Form
T° comPlV ™th 533.415. "Time for
bids." the recipient must allow at
u days between the date when it first
lnc pubhc n°ti« and the date by
s must be submitted.
, com&1y w»th 5 33.410. "Public notice
sohcitation of bids." the recipient must
"uoi.sh the notice in professional journals.
409
-------
APPENDIX I
-------
APPENDIX I
40 CFR PART 40, "RESEARCH AND
DEMONSTRATION GRANTS"
40 CFR PART 45, "TRAINING ASSISTANCE"
40 CFR PART 46, "FELLOWSHIPS"
40 CFR PART 47, "NATIONAL
ENVIRONMENTAL EDUCATION GRANTS"
-------
United States
Environmental Protection
Agency
Grants Administration
Division (PM-216)
Wasnmgton. DC 20460
SPA GADMO-80-1
June 1980
c/EPA
Interim Regulations
and Procedures
Applicable to
Research
and
Demonstration
Grants
-------
Reprinted from Code of Federal Regulations, Tide 40, Pare 40, revised as
of July 1, 1979
First Printing June 1980
-------
Table of Sections
PART 40—RESEARCH AND
DEMONSTRATION GRANTS
See.
40.100 Purpose of regulation.
40.103 Applicability and scope.
40.110 Authority.
40.113 Definition*.
40.115-1 Construction.
40.119-2 Internunlcipal agency.
40.115-3 Interstate agency.
40.115-4 Munclpalllty.
40.115-3 Person.
40.115-4 State.
40.120 Publication of EPA research objec-
tives.
40.123 Grant limitations.
40.123-1 Limitations on duration.
40.123-2 Limitations on assistance.
40 130 Eligibility.
40.133 Application.
40.133-1 Preappllcatlon coordination.
40.133-2 Application requirements.
40.140 Criteria for award.
40.140-1 All applications.
40.140-2 [Reserved]
40.140-3 Federal Water Pollution Control
Act.
40.143 Supplemental grant conditions.
40.143-1 Resource Conservation and Re-
covery Act*
40.143-2 Federal Water Pollution Control
Act.
40.143-3 Projects Involving construction.
40.130 Evaluation of applications.
40.133 Availability of Information.
40.160 Report*,
40.160-1 Progress reports.
10.160-2 Financial status report.
40.160-3 Reporting of Inventions.
40.160-4 Equipment report.
40 160-3 Final report.
40.163 Continuation granta.
AoTBowrr Authorities cited la 140.110.
SOOMC 3d PR 12784. May 13. 1973, unless
otherwise noted.
-------
§40.115-1
540.10* Purpose of regiilatioa,
These provUlons establish and
codify policies and procedural govern-
ing the award of research and demon-
stration grant* by the Environmental
Protection Agency.
140.205 Applicability and Mop*.
This part establishes mandatory
policies and procedures for all EPA re-
search and demonstration grants. The
provisions of this part supplement the
EPA general grant regulations and
procedures (40 CFR Part 30). Accord-
ingly, all EPA research and demon-
stration grants are awarded subject to
the EPA Interim general grant regula-
tions and procedures (40 CFR Part 30)
and to the applicable provisions of this
Part 40.
J40.HO Authority.
EPA research and demonstration
grants are authorized under the fol-
lowing statutes:
(a) The Clean Air Act. as amended.
42 U.S.C. 1857 et seq.
(1) Section 103 (42 U.S.C. IBSTb) au-
thorizes grants for research and dem-
onstration projects relating to the
causes, effects, extent, prevention, and
control of air pollution.
(2) Section 104 (42 U.S.C. 1857b-l)
authorizes grants for research and de-
velopment of new and Improved meth-
ods for the prevention and control of
air pollution resulting from the com-
bustion of fuels.
(b) The Federal Water Pollution
Control Act. as amended. Pub. L. 92-
300.
(1) Section 104(b) (33 U.S.C. 1254
authorizes grants for research and
demonstration projects relating to the
causes, effects, extent, prevention, re-
duction, and elimination of water pol-
lution.
(2) Section 104(h) (33 U.S.C.
I294(h)) authorizes grants for re-
search and development of new and
improved methods for the prevention.
removal, reduction, and elimination of
pollution in lakes. Including the unde-
sirable effects of nutrients and vegeta-
tion, and for construction of publicly
owned research facilities for such pur-
pose.
(3) Section 104(1) (33 UAC. 1254(1))
authorizes grants for research, studies.
experiments, and demonstrations rela-
tive to the removal of oil from any
waters and for the prevention, control.
and elimination of oil and hazardous
substances pollution.
(4) Section 1044r> (33 UAC, 1254(r»
authorized grants for the conduct of
basic research Into the structure and
function of freshwater aquatic ecosys-
tems, and to Improve understanding of
the ecological characteristics neces-
sary to the ti«»i»rt««i«nf»ft of the chemi-
cal, physical, and biological integrity
of freshwater aquatic ecosystems.
(5) Section 104(s) (33 U.4.C. (a)) au-
thorizes grants to conduct and report
on Interdisciplinary studies on river
systems, including hydrology, biology.
ecology, economics, the relationship
between river uses and land uses, and
the effect" >l development within
rivet o^-'.is on river systems and on
the value of water resources and
Wbli-r-rela'. ed activities.
t8) LX.!ton 105(a) (33 U.S.C. 1255(a)>
.uuio-lses grants for research and-
demonstration of new or improved
• .et.'iods for preventing, reducing, and
e (nrlnatlng the discharge into any
waters of pollutants from sewers
which carry storm water or both
storm water and pollutants; and for
the demonstration of advanced waste
treatment and water purification
methods (Including the temporary use
of new or Improved chemical additives
which provide substantial immediate
Improvement to existing treatment
processes), or new or Improved meth-
ods of joint treatment systems for mu-
nicipal and industrial wastes.
(7) Section lC5(b) (33 U.S.C. 1255(b))
authorizes grants for demonstrating.
In river basins or portions thereof, ad-
vanced treatment and environmental
enhancement techniques to control
pollution from all sources, within such
basin or portions thereof, including
nonpoint sources, together with In-
stream water quality Improvement
techniques.
(8) Section 105(c) (33 U.S.C. 1255
-------
940.130
quisitlon. alteration, remodeling. Im-
provement, or extension of a facility.
and the Inspection and supervision of
the construction of a facility.
9 40.115-2 Intermunicipmi agency.
(a) Under the Clean Air Act. an
agency of two or more municipalities
located Ln the same State or in differ-
ent States and having substantial
powers or duties pertaining to the pre-
vention and control of air pollution.
(b) Under the Resource Conserva-
tion and Recovery Act. an agency es-
tablished by two or more municipal-
ities with responsibility for planning
or administration of solid waste.
(c) In all other cases, an agency of
two or more municipalities having sub-
stantial powers or duties pertaining to
the control of pollution.
[38 PR 12784. May 13. 1973. M amended at
42 PR 36056. Oct. 20. 1977]
5 40.II(-3 Interstate agency.
(a) Under the Clean Air Act. an
agency established by two or more
States, or by two or more municipal-
ities located in different States, having
substantial powers or duties pertain-
ing to the prevention and control of
air pollution.
(b) Under the Federal Water Pollu-
tion Control Act. an agency of two or
more States established by or pursu-
ant to an agreement or compact ap-
proved by the Congress or any other
agency of two or more States, having
substantial powers or duties pertain-
ing to the control of pollution of
waters.
(c) Under the Resource Conservation
and Recovery Act. an agency of two or
more municipalities in different States
or an agency established by two or
more States, with authority to provide
for the disposal of solid wastes and
serving two or more municipalities lo-
cated in different States.
(d) In all other cases, an agency of
two or more States having substantial
powers or duties pertaining to the con-
trol of pollution.
(38 PR 12784. May IS. 1973. as amended at
42 PR 56056. Oct. 20.19771
540.115-4 Municipality.
(a) Under the Federal Water Pollu-
tion Control Act. a city, town, bor-
ough, county, parish, district, associ-
ation, or other public body created by
or pursuant to State law. or an Indian
tribe or an authorized Indian tribal or-
ganization, with jurisdiction over dis-
posal of sewage. Industrial wastes, or
other wastes; or a designated and ap-
proved management agency under sec-
tion 208 of the act.
(b) Under the Resource Conserva-
tion and Recovery Act. a city. town.
borough. Bounty, parish, district, or
other public body created by or pursu-
ant to State law. with responsibility
for the planning or administration of
solid waste management, or an Indian
tribe or authorized tribal organization
or Alaska Native village or organiza-
tion, and any rural community or un-
incorporated town or village or any
other public entity for which an appli-
cation for assistance Is made by a
State or political subdivision thereof.
(c) In all other cases, a city. town.
borough, county, parish, district, or
other public body created by or pursu-
ant to State law. or an Indian tribe or
an authorized Indian tribal organiza-
tion, having substantial powers or
duties pertaining to the control of pol-
lution.
(38 PR 12784. May 13. 1973. u amended at
42 PR 36056. Oct. 20. 1977]
540.115-5 Peraon.
(a) Under the Federal Watei ollu-
tion Control Act. an individual, corpo-
ration, partnership, association. State.
municipality, commission, or political
subdivision of a State, or any inter-
state body.
(b) Under the Resource Conserva-
tion and Recovery Act. an individual.
trust, firm, joint stock company, cor-
poration (Including a government cor-
poration), partnership, association.
State, municipality, commission, polit-
ical subdivision of a State, or any in-
terstate body.
(38 PR 12784. May 15. 1973. at amended at
42 PR 56037. Oct. 20. 1977]
940.115-4 State.
(a) Under the Federal Water Pollu-
tion Control Act. a State, the District
of Columbia, the Commonwealth of
Puerto Rico, the Virgin Islands.
Guam. American Samoa, and the
Trust Territory of the Pacific Islands.
(b) Under the Resource Conserva-
tion and Recovery Act. a State, the
District of Columbia, the Common-
wealth of Puerto Rico, the Virgin Is-
lands. Guam. American Samoa, and
the Commonwealth of the Northern
Mariana Islands.
(c) In all other cases, a State, the
District of Columbia, the Common-
wealth of Puerto Rico, the Virgin Is-
lands. Guam and American Samoa.
(42 PR 36097. Oct. 20.1977]
§ 40.120 Publication of EPA research ob-
jectives.
The Office of Research and Develop-
ment of EPA publishes i. statement of
research objectives and priorities an-
nually In a document entitled "Office
of Research and Development—Pro-
gram Guide." This document may be
obtained from either the Office of Re-
search and Development. RD-674. or
the GranU Administration Division.
PM-218. UA Environmental Protec-
tion Agency. Washington. D.C. 20460.
(42 PR 36067. Oct. 20. 1977]
§ 40.125 Grant limitations.
§ 40.125-1 Limitations on duration.
(a) No research or demonstration
grant shall be approved for a budget
period in excess of 2 years except dem-
onstration grants involving construc-
tion.
(b) No research or demonstration
grant shall be approved for a project
period in excess of 5 years.
(c) The.grant award official may
extend the budget and project periods
for up to an additional 12 months
without additional grant funds, when
such extensions are in the best inter-
est of the Government.
[42 PR 36057. Oct. 20. 1977]
5 40.123-2 Limitations on assistance.
In addition to the cost-sharing re-
quirements pursuant to 40 CFR
30.720. research and demonstration
grants shall be governed by the specif-
ic assistance limitations listed below:
(a) Federal Water Pollution Control
Act. (1) Section 104(s>—no grant In
any fiscal year may exceed SI million.
(2) Sections 105(a). 105
-------
$ 40.140-3
agencies, and Institutions: pnvate
agencies and Institutions: and individ-
uals.
(2) Section 3004 and 8005. public
agencies and authorities or pnvate
persons.
(3) Section 8006. State, municipal.
intersate or mtermunicipal agencies.
(4) No grant may be made under this
Act to any private profit-making orga-
nization.
(c> The Federal Insecticide. Fungi-
cide, and Rodenllcide Act. as amend-
ed—other Federal agencies, universi-
ties, or others as may be necessary to
carry out the purposes of the act.
(d) The Federal Water Pollution
Control Act. as amended:
(1) Section 104(b)—State water pol-
lution control agencies, interstate
agencies, other public or nonprofit pri-
vate agencies, institutions, organiza-
tions, and to Individuals.
(2) Sections 104(h> and 104-
public or private agencies and organ!*
zations and to Individuals.
<3> Section 104—colleges and uni-
versities.
(4) Section 104(s)-lnstltuUons of
higher education.
(5) Sections I05(a). 105(eX2>. and
107—State, municipal. Interstate, and
Intermunicipal agencies.
(6) Section lBUt»-Statc or States or
Interstate agency.
(7) Sections 10SXO and 105-
persons.
(8) Section lot-State, political sub-
division. Interstate agency, or other
public agency, or combination thereof.
(9) Section 113—only to the State of
Alaska.
(e) The Public Health Service Act. as
amended—only to nonprofit agencies.
institutions, organizations, and to indi-
viduals.
(18 FR 11784. May 15. l»73. u amended at
40 FR 20083. May 8. 1975: 42 FR 56057. Oct.
20.19711
940.135 Application.
{40.135-1 Preapplieatkm coordination
(a) All applicant!. (1) Applicants for
research and demonstration grants are
encouraged to contact EPA for further
Information and ninriffttnif prior to
submitting a formal application. The
EPA regional office or the laboratory
neare&t the applicant will be able to
provide such assistance or to refer the
applicant to an appropriate EPA rep-
resentative.
<2) Applicants shall prepare an envi-
ronmental assessment of the proposed
project when applicable, outlining the
anticipated Impact on the environ-
ment pursuant to 40 CFR. Part 6.
must have been
approved by the appropriate State
water pollution control agency or
agencies.
(2) All applications for grants under
section 107. when the proposed proj-
ect will be located In the Appalachian
region, shall have been coordinated
with the Appalachian Regional Com-
mission for determination that such
demonstration project is consistent
with the objectives of the Appalachian
Regional Development Act of 1965. as
amended.
[38 FR 12784. May 19. 1973. u amended tt
40 FR 20083. May 8.1971:42 PR 5805T. Oct.
20.19771
940.140 Criteria for award.
In determining the desirability and
extent of funding for a project and the
relative merit of an application, con-
sideration will be given to the follow-
ing criteria:
940.140-1 All appUcatloM.
(a) The relevancy of the proposed
project to the objectives) of the EPA
research and demonstration program;
(b) The availability of funds within
EPA:
(c) The technical feasibility of the
project;
(d) The seriousness, extent, and ur-
gency of the environmental problem*
toward which the project la directed:
(e) The anticipated public benefits
to be derived from the project In rela-
tion to the costs of the project;
(f) The competency of the appli-
cant's staff and the adequacy of the
applicant's facilities and available re-
sources;
(g) The degree to which the project
can be expected to produce results
that will have general application to
pollution control problems nationwide;
(h) Whether the project is consist-
ent with existing plan* or ongoing
planning for the project area at the
State, regional, and local levels;
(1) The existence and extent of local
public rapport for the project;
(J) Whether the proposed project Is
environmentally pound;
(k) Proposed cost sharing.
940L140-I (
1
PolhrtkM CM-
|4*J40-« Ftewal Water
tret Art.
(a) All applications for grants under
section L05XO must provide evidence
that the proposed project will contrib-
ute to the development or demonstra-
tion of a new or Improved method of
treating Industrial watte* or otherwise
preventing pollution by industry.
which method shall have industrywide
-------
§40.150
(b) All applications for grants under
section 113 must Include provisions for
community safe water supply systems.
toilets, bathing and laundry facilities.
sewage disposal facilities and pro-
grams relating to health and hygiene.
Such projects must also be for the fur-
ther purpose of developing prelimi-
nary plans for providing such safe
water and such elimination or control
of water pollution for all native vil-
lages in the State of Alaska.
§ 40.145 Supplemental grant conditions.
In addition to the EPA general grant
conditions (40 CFR. Part 30. Subpart
C). all grants are awarded subject to
the following requirements:
(a) The project will be conducted In
an environmentally sound manner.
(b) In addition to the notification of
project changes required pursuant to
40 CFR 30.900. prior written approval
by the grants officer Is required for
project changes which may (1) alter
the approved scope of the project. (2)
substantially alter the design of the
project, or (3) increase the amount of
Federal funds needed to complete the
project. No approval or disapproval of
a project change pursuant to 40 CFR
30.900 or this section shall commit or
obligate the United States to an In-
crease In the amount of the grant or
payments thereunder, but shall not
preclude submission or consideration
of a request for a grant amendment
pursuant to 40 CFR 30.900-1.
(38 PR 12784. May IS. 1971. as unended at
40 PR 20083. May 8.10781
{40.145-1 Rwourcc ConstrraUon and Re-
covery Act
Programs for which a Federal grant
Is awarded by the Environmental Pro-
tection Agency to a State, municipal.
Interstate or Intennunlctpal agency, or
to any public authority, agency or in-
stitution, under the Resource Conser-
vation and Recovery Act. shall be the
subject of public participation consist-
ent with Part 249 of this chapter.
(42 PR 86057. Oct. 20.1977]
9 40.145-2 Federal Water Pollution Con-
trol Act.
(a) No person In the United States
shall on the ground of sex be excluded
from participation In. be denied the
benefits of. or be subjected to discrimi-
nation under any program or activity
receiving assistance under the Act.
(b) Grants under section 107 are
awarded subject to the conditions—(1)
that the State shall acquire any land
or Interests therein necessary for such
project to assure the elimination or
control of acid or other mine water
pollution: and (2) that the State shall
provide legal and practical protection
to the project area to Insure against
any activities which will cause future
add or other mine water pollution.
140.145-3 Project! Involrlnf eonitni'/tion.
Research and demonstration grants
for projects Involving construction
shall be subject to the following condi-
tions:
(a) The applicant will demonstrate
to the satisfaction of the grants officer
that he has or will have a fee simple
or such other estate or interest in the
site of the project, and rights of
access, as the grants officer finds suffi-
cient to assure undisturbed use and
possession for the purpose of construc-
tion and operation for the estimated
life of the project; and In the case of
projects serving more than one mu-
nicipality, that the participating com-
munities have surh interests or rights
as the grants officer finds sufficient to
assure their undisturbed utilization of
the project for the estimated life of
the project.
(b) Invitations for bids or requests
for proposals shall b: based upon a
clear and accurate description of the
technical requirements for the materi-
al, product, or service to be procured.
Such description shall not. In competi-
tive procurements, contain features
which unduly restrict competition.
"Brand name or equal" description
may be used as a means to define the
performance or other salient require-
ments of a procurement, and when so
used the specific features of the
named brand which must be met by
offerers should be clearly specified.
(c) Positive efforts shall be made by
the grantees to utilize small business
and minority-owned business sources
of supplies and services.
(d) Subagreements for construction
work may be negotiated when adver-
tising for competitive bids Is not feasi-
ble: however, the grantee must ade-
quately demonstrate Its need to con-
tract with a single or sole source. All
such subagreements are subject to
prior approval by the grants officer.
(e) Construction work will be per-
formed by the fixed-price (lump sum)
or fixed-rate (unit price) method, or a
combination of these two methods.
unless the grants officer gives advance
written approval to use some other
method of contracting. The cost-plus-
a-percentage-of-cost method of con-
tracting shall not be used. Adequate
methods of advertising for and obtain-
ing competitive sealed bids will be em-
ployed prior to award of the construc-
tion contract. The award of the con-
tract will be made to the responsible
bidder submitting the lowest respon-
sive bid. which shall be determined
without regard to State or local law
whereby preference is given on factors
other than the specification require-
ments and the amount of bid. The
grantee must promptly transmit to the
grants officer copies of bid protests.
decisions on such protests, and related
correspondence. The grants officer
will cause appropriate review of grant-
ee procurement methods to be made.
(f) On construction contracts ex-
ceeding $100.000, each bidder raus
furnish a bid guarantee equivalent to I
percent of the bid price. In addition.
the contractor awarded the contract
must furnish performance and pay-
ment bonds, each of which shall be in
an amount not less than 100 percent
of the contract price. Construction
contracts less than 1100.000 shall
follow the State or local requirements
relating to bid guarantees, perform-
ance bonds, and payment bonds.
(g) The construction of the project.
including the letting of contracts in
connection therewith, shall conform
to the applicable requirements of
State, territorial, and local laws and
ordinances to the extent that such re-
quirements do not conflict with Feder-
al laws.
(h> The grantee will provide and
maintain competent and adequate en-
gineering supervision and inspection
for the project to insure that the con-
struction conforms with the approved
plans and specifications.
(I) Any construction contract must
provide that representatives of the En-
vironmental Protection Agency and
the State, as appropriate, will have
access to the work whenever It Is in
preparation or progress and that the
contractor will provide proper facili-
ties for such access and Inspection.
The contract must also provide that
the grants officer, the Comptrollei
General of the United States, or any
authorized representative shall have
access to any books, documents.
papers, and records of the contractor
which are pertinent to the project for
the purpose of making audit, examina-
tion, excerpts, and transcriptions
thereof.
(j) The grantee agrees to construct
the project or cause It to be construct-
ed In accordance with the application.
plans and specifications, and subagree-
menu approved by EPA In the grant
agreement or amendments.
(k) In addition to the notification of
project changes pursuant to 40 CFR
30.900. a copy of any construction con-
tract or modifications thereof, and of
revisions to plans and specifications
must be submitted to the grants offi-
cer.
(38 PR 12784. May 13. 1973. M unended at
40 PR 20083. May 8. 1975)
9 40.158 Evaluation of application*.
Every application for a research or
demonstration grant will be evaluated
by appropriate EPA staff In terms of
relevancy and the applicable criteria
set forth In 140.140. Only applications
considered relevant to EPA research
and demonstration objectives will re-
ceive further consideration and be sub
jected to additional review. Relevano
will be measured by program needs
and priorities as defined In the Agen-
cy's current planned objectives. Rel-
evancy, coupled with the result* of
-------
§40.145
technical review, will provide the basis
for funding recommendations.
(a) New application*. Applications
considered relevant to EPA research
and demonstration objectives will be
reviewed for technical merit by at
least one reviewer within EPA and at
least two reviewers outside EPA.
Review by a National Advisory Coun-
cil Is sUtutorlly required for radiation
grant*.
(b) Continuation applications. Con-
tinuation applications will be reviewed
by appropriate EPA staff only. Recom-
mendations for continuation of fund-
Ing will be based on progress toward
the accomplishment of the goals set
forth for the project and continued
Agency needs and priorities.
} 40.155 Availability of information.
(a) The availability to the public of
information provided to, or otherwise
obtained by. the Administrator under
this Part shall be governed by Part 2
of this chapter.
(b) An assertion of entitlement to
confidential treatment of part or all of
the Information in an application may
be made using the procedure described
in |30.23S(b). See also ||2.205 and
2.204 of this chapter.
(c) All Information and data con-
tained In the grant application will be
subject to external review unless devi-
ation la approved for good cause pur-
suant to 40 CFR 30.1000.
[38 PR 17184. May 19. 1973. M amended at
40 FR 20083. May 8. 1073; 41 PR 36918.
Sept. 1.19781
} 40.180 Report*
} 40.180-1 Pragma report*,
The grant agreement will normally
require the submission of a brief prog-
ress report after the end of each quar-
ter of the budget period. A monthly
progress report may be required for
some demonstration project*, If set
forth In the grant agreement. Progress
reports should fully describe In chart
or narrative format the progress
achieved In relation to the approved
schedule and project milestones. Spe-
cial problems or delays encountered
must be explained. A summary prog-
ress report covering all work on the
project to date Is required to be Includ-
ed with applications for continuation
grants (see 140.165b>. This report may
be submitted one quarter prior to the
end of the budget period.
140.180-: Financial rtaUu report.
A financial status report must be
prepared and submitted within 90 days
after completion of the budget and
project periods in accordance with
i 30.635-3.
[42 FR 58097. Oct. 20.19771
{ 40.180-3 Reporting of invcntiona,
As provided In Appendix B of 40
CFR. Pan 30. immediate and full re-
porting of all inventions to the Envi-
ronmental Protection Agency Is re-
quired. In addition:
(a) An annual invention statement is
required with each continuation appli-
cation.
(b) A final Invention report is re-
quired within 90 days after completion
of the project period.
-------
Thursday
October 18, 1984
Part III
Environmental
Protection Agency
40 CFR Part 45
Training Assistance Final Rule
40 CFR Part 46
Fellowship Assistance Final Rule
-------
4100? Federal Register / Vol. 49. No. 203 / Thursday. October 18. l^a-t / Rul-s and Regulations
ENVIRONMENTAL PROTECTION
AGENCY
40 CFR Part 45
OA-fHL 2621-2(1))
raining AMletance; FIrwl Rule
«GINCY: Environmental Protection
Agency.
ACTION; Final rule.
SUMMARY: This final rule revises the
Environmental Protection Agency's
(EPA] regulation at 40 CFR Part 45
governing the award and administration
of EPA training assistance. The
revisions are designed to ensure
consistency with EPA's "General
Regulation for Assistance Programs"
and to reflect current EPA policies on
training assistance awards.
DATE This rule applies to all training
assistance which EPA awards on or
after October 18.1904.
PON njKTNM INI-OMMTION CONTACT:
Richard A. [ohnson. Grants
Administration Division (PM-2U).
Environmental Protection Agency. 401M
Street SW., Washington. D.C.. 20480
(202) 362-5296.
auPtUMiftTAftv IMPONMATMN: Part 45
establishes the policies and procedures
for the award of training assistance by
EPA. We have not updated the training
assistance rule since October 20,1977.
This document updates Part 45 and
incorporates changes to EPA policies on
training assistance awards. Since the
revisions to this rule are largely
technical in nature, we did not publish •
proposed rule for public comment The
changes to the rule include:
Stipend Levels
In the previous rule, we had a dollar
limit on die use of awarded fund* for
stipend amounts in any particular
budget period and a dollar limit on the
amount of an annual stipend. We
deleted those levels from this rule in
order to provide program office* the
flexibility to make changes in the
stipend levels based oa program need*
and funding levels without seeking a
deviation from the rule.
Subparl 8—Manpower Forecasting
EPA anticipated funding for
manpower forecasting when the Agency
was first established, therefore, we
•"served Suboart B far the development
jf policies and procedures for
manpower forecasting assistance
agreements. Since no funds have been
available for such agreements, and none
is anticipated, we deleted the reference
to manpower forecast,ng in the file of
this part and in the table of contents.
Consistency With 40 CFR Pan 30.
"General Regulation for Assistance
Programs"
EPA published a final revision to 40
CFR Part 30 on September 30,1963 (46
FR 45056). EPA revised this rule to make
it consistent with the revised 40 CFR
Part 30. "General Regulation for
Assistance Programs." September 30.
1983.
Regulation Development
Under Executive Order 12291. EPA is
required to make a (udgement whether a
regulation is "major" and. therefore.
subiect to the regulatory impact analysis
requirements of the Order. We have
determined that this rule is not "major"
because it will not have a substantial
impact on the Nation's economy or large
numbers of individuals or businesses.
Then will be no tnator increases in
costs or prices for consumers.
individuals, industries, or Federal. State,
or local governments. The rule waa
submitted to the Office of Management
and Budget as required by Executive
Order 12291.
Under the Paperwork Reduction Act
of 1980, 44 U.S.C. 3501 et seq.. the
information provisions in this rule have
been approved by the Office of
Management and Budget (OMB
clearance number 2010-0004).
LM of Subjects in 40 CFR Part IB
Administrative practice and
procedures. Environmental protection.
Grant programs—environmental
protection. Reporting and recordkeeping
requirements.
Dated: October 3. IBM.
WHBenO.Ruck«itluus,
Adauaittntor.
Accordingly, title 40. Chapter IU
amended by revising Part 45 to read aa
follows.
PART 4S-TRAININO ASSISTANCE
te.
45.100 Purpoae tod icope.
45.108 Authority
45.110 Objective!.
45.113 Definitions.
45.120 Applicant eligibility.
45.125 Application requirements.
45.130 Eviluauun of •pollutions.
49.139 Supplemental conditions.
45.140 Budget and protect period.
45.145 Alloubibry ind allowability of costs.
45.150 Reports.
45.155 Continuation iisistinca.
Appendix A—Environmental Protection
Agency Training Programs
Authority; Sec. 103 of (tie Clesn Air Act aa
amended (42 U S C. 7403). sec 104(8). 1C*
nii r i if ih* Clean Water A<_i Jk ..-p-jcii
111 l SC ::54fg! i:J9 and 12S1I. >«•« 7i»r
or d ar«M 01 'he Sond Wajte O.jposal Act *i
.mcnj^ (42 USC 6977 and 89811 ice 1*42
uf 'he Srt! Drinking Wai«r Ael. as
-------
Federal Register / Vol 49. No 203 / Thursday. October 18. 1984 / Rules and Regulations 41005
§ 45 120 Appllcjnt tligibillty.
Institutions, organizations, and
individuals are eligible for EPA training
a^irds as follows
(a) Clean \ir \ct Section I03(b)—Air
pollution control agencies, public and
nonprofit private agencies institu'ions
orgdr ?a; OPS and .ndivd-a'.s \o
a'.vara -nay be rrade under this Act to
an> private, profitmakmg organization
(b) C.'ecn Water Act (1) Section
H4(b)i3)—State water pollution control
agenc.es. interstate agencies other
public or nonprofit private agencies.
institutions, organizations, and
individuals. No award may be made to
any private profitmakmg organization
Ul Section 104(g|(3||A|—Public/or
private agencies and institutions, and
individuals
(3) Sections 104(g)(l) and
l04(g)(3)(CJ—Stale and interstate
agencies, municipalities, educational
institutions and other organizations and
individuals.
(4) Sections 109.110. and Ill-
Institutions of higher education, or
combinations of such institutions.
(c) Solid Waste Disposal Act (l)
Section B001(a)—Public or private
authorities, agencies, and institutions
and individuals. No award may be made
to any pnvate. proFitmakmg
organization.
[2] Section 7007(a)—State or interstate
agencies, municipalities, educational
institutions, and other organizations.
(d) Safe Drinking Water Act. Sections
U42(b) and I442(d)—Public agencies.
educational institutions, and other
organizations. No awards may be made
to profitmakmg agencies or institutions.
§45.125 Apportion rcqummmta.
Applicants must submit their requests
for assistance on EPA Form 5700-12.
Application for Federal Assistance."
Applicants must submit the original and
two copies of the application to EPA. If
the assistance agreement is to be
jwarded by EPA Headquarters, the
applicant must send the application to
the Environmental Protection Agency.
Grants Administration Division. Grants
Operation Branch (PM-216). 401 M
Street SW. Washington. D.C. 20460. If
the assistance agreement is to be
awarded by an EPA Regional Office, the
applicant must send the application to
(he appropriate Regional Office. (OMB
clearance number 2010-0004)
§41130 Evaluation of application*.
|aj Consistent with 40 CFR 30.301. the
appropriate EPA program office staff
wili review training applications in
accordance with the following criteria:
(1) Relevance of proposal to Agency
objectives priorities, achievement of
national goals arid technical merit.
(2) Competency of the proposed staff
T. relation to the type of project
proposed
(3) Feasibility of the proposal.
(4) Adequacy of the applicant s
-esources available for the project.
(5) Amount of tards necessary for the
cor.pietion of the project.
(b) In addition awards under section
104(g)(1 | of the Clean Water Act are
subject to the following criteria
(1) Assessment of need for training in
a State or municipality based on
problems with existing wastewater
treatment plants, such as violation of
discharge permit conditions, and faulty
or improper operation or maintenance.
(2) Need for operating training based
on the number of wastewater treatment
construction grants in the State
§45.135 Supplemental condition*.
Training awards are subiect to the
following conditions-
(a) Trainees must be citizens of the
United States, its territories, or
possessions, or lawfully admitted to the
United States for permanent residence.
(b) Recipients shall not require the
performance of personal sen-ices by
individuals receiving training as a
condition for assistance.
(c) Trainees are entitled to the normal
student holidays observed by an
academic institution, or the holiday and
vacation schedule applicable to all
trainees at a nonacademic institution.
(d) Training awards may include a
provision to pay stipends to trainees.
Stipends must be paid under section ill
of the Clean Water Act consistent with
prevailing practices under comparable
federally supported programs.
(e) Training awards under section 111
of the Clean Water Act are subject to
the following conditions:
(1) Recipients must obtain the
following agreement in writing from
persons awarded scholarships for
undergraduate study of the operation
and maintenance of treatment works:
I agree to enter and rema'n in an
occupation involving the design, operation, or
maintenance of waitew .ter treatment work*
for • penod of two yean after the
satisfactory completion of my studies under
this program. I understand that if I fail to
perform this obligation I may be required to
repay the amount of my scholarship.
(2) Recipients must take such action
as may be reasonably required to
enforce the condition in paragraph
(e)(l) Recipients shall credit or pay EPA
for any repayments.
§45140 Budget and proitct period
The budget and project periods :or
training awards ma> not exceed 'hr°p
vears
§ 45 145 Allocability and allowability oi
cottt
(d) Allocdbil.ty and allowabiliiv of
costs v%il! be determined in accorcar.cc
with 40 CFR 30 410
(b) Costs incurred for the purchase 31
land or the construction of bjilclu-;s --P
not allowable
§ 45 ISO Reports.
(a) Recipients must submit the repor 3
required in 40 CFR 30 SOS
(b) A draft of the final project repor' >
required 90 days before the end of the
project period The recipient shall
prepare the final protects report in
accordance with the project officer s
instructions, and submit the final projpi
report within 30 days after the end of ho
project period.
§ 45. 1 55 Continuation assistance.
To be eligible for continuation
assistance, the recipient must
(a) Demonstrate satisfactory
performance during all previous budget
periods:
(b) Include in the application a
detailed progress report showing the
progress achieved and explain special
problems or delays, a budget for the
new budget penod. and a detailed uork
plan for the new budget period and
(c) Submit a preliminary financial
statement for the current budget perod
that includes estimates of the amount
the recipient expects to spend by the
end of the current budget period and -he
amount of any uncommitted funds
which the recipient proposes to carry
over beyond the term of the current
budget penod.
APPCNOU A— ENVIRONMENTAL PROTECTION
AGENCY TRAINING PMQGRAUS
[ »aw«»«inq . ,.,
Oftaoito Non* and Raa>
IML
*r PeXMn Control Xtof
A* Poounon Cwroi—r«crv <
Omaoiwiur
wtwr Penmen Control— X
P^o^Mvontf Timnu
Orwll.
S4K Omuig WMr Pnttt. t
larat TranngOxwa.
Sm Cmwig W*'«r-Oc
o« So WM» M
Htf*
•TOM w«w Trmng.
(FV Ooc M-2T4OI fitod 10-1 -»• 3 «9 ir ;
•MJM COOS USB-M-M
-------
41006 Federal Register / Vol. 49. No. 203 / Thursday. October 18. 1964 / Rules and Regulatlona
40 CFR Put 49
(OA-f HI 2821-2
-------
Federal Register / Vol. 49. No. 203 / Thursday, October 18. 1964 / Rules and Regulations 41007
supportive of pollution abatement and
control efforts.
§46.120 OeffnlttoM.
The following definitions supplement
the definitions in 40 CFR 30 200
Fjll time fellow An individual
enrolled in an academic educational
program directly related to pollution
abatement and control and taking a
T.numum of 30 credit hours or an
academic workload otherwise defined
by the institution as a full-time
curriculum for a school year. The fellow
need not be pursuing a degree.
Part-time fellow An individual
enrolled in an academic educational
program directly related to pollution
abatement an control and taking at least
6 credit hours but less than 30 credit
hours per school year or an academic
workload otherwise defined by the
institution as less than a full-time
curriculum The fellow need not be
pursuing a degree.
Special fellow An individual enrolled
m an educational program relating to
environmental sciences, engineering.
professional schools, and allied
sciences.
Stipend. Supplemental financial
assistance other than tuition, fees, and
book allowance, paid directly to the
fellow.
§48.125 Benefits.
(a) Recipients of assistance under this
part shall be entitled to tuition and fees.
Recipients may receive an allowance for
books and supplies up to a maximum of
S7SO for the school year for a full-time
fellow, and are entitled to the normal
student holidays observed by the
academic institution.
(b) Recipients of a fellowships may
receive a stipend at • level determined
by the EPA program office based on
EPA's needs and resources, and on the
student's course load.
(c) Part-time fellows will not be paid
more than the maximum amount paid to
an equivalent full-time fellow under the
same fellowships program.
§46.130 EHOjMKy.
(a) All applicants for fellowships
under this part must be:
(i) Citizens of the United States, its
territories, or possessions, or lawfully
admitted to the United States for
permanent residence: and
(2) Accepted by an accredited
educational institutional for full-time or
part-i'tne enrollment for academic credit
insr ducationaJ program directly
relai to pollution abatement and
control.
(b) Applicants for State or local
agency fellowships must be current or
prospective employees of a State or
local agency *;th responsibilities for
environmental pollution control, and1
must be recommended by the
administrator or designee. of the State
or local agency The administrator, or
designee. will recommend applicants
based on the State or local need for
academic professional training which
will enhance the capability of the State
or local agency.
§46.135 Submission of application*.
(a) Applicants must submit their
requests for assistance on EPA Form
5770-2. "Fellowship Application."
Applicants must submit the original and
two copies ct the application and
undergraduate or graduate transcripts.
as appropriate, to the Grants
Administration Division. Grants
Operation Branch (PM-216),
Environmental Protection Agency. 401 M
Street SW. Washington. D C.. 20460.
(OMB clearance number 2010-0004 )
(b) The applicant must submit
documentation to show compliance with
the eligibility requirements in f 46.130.
and any additional information required
by the award official. Instructions for
filing are contained in the application
kit.
} 46.140 Evaluation of application*.
(a) EPA will evaluate fellowship
applications based upon:
(1) Their relevance to EPA's program
needs:
(2) The availability of funds: and
(3) EPA's priorities.
(4) Appropriateness of the fellow's
proposed course of study:'
(S) Evaluation of the applicant in
terms of potential for study, as
evidenced by academic record, letters of
reference, training plans; and any other
available information.
141.148 PeBowiMp agreement
(a) The fellowship agreement is the
wntten agreement including
amendments, between EPA and a
fellow. The agreement. EPA Form 5770-
8. "Fellowship Agreement" will state
the terms and conditions governing the
fellowship. (OMB clearance number
2010-0004.)
(b) EPA will not participate in coats
incurred by the fellow before both the
award official and tat fellow sign the
agreement
(c) The fellow must use the funds for
the purposes stated in the fellowship
agreement If the fellow fails to comply
with the terms and conditions of the
award, the award official may apply the
sanctions in 40 CFR Part 30. Subpart L
§46.150 FcUewsMp agreement
amendment
(a) The fellow must receive a formal
amendment before implementing
(i; Changes in the objective of the
agreement.
(2) Changes in the assistance amount
(3)' Substantial changes within the
scope of the agreement, or
(4) Changes in the project period
(b) Fellows must submit a completed
EPA Form 5770-6. "Fellowship
Amendment" (OMB clearance number
2010-0004) when requesting an
amendment to the fellowship agreement
(c) Minor changes in the agreement
that are consistent with the objective of
the agreement and within the scupe of
the agreement do not require a formal
amendment before the fellow
implements the change. However, such
changes do not obligate EPA to provide
Federal funds for any costs incurred by
the fellow in excess of the assistance
amount unless the award official
approves the change in advance under
} 46 ISOfa). The fellow must .form the
EPA protect officer in writing before
implementing minor changes.
§44.155 Supplemental eandrttont.
Recipients of a State or local
fellowship receiving financial assistance
under section 1442(d)(2) of the Safe
Drinking Water Act as amended.
sections 104(b)(S) and 104(g)(3)(B) of the
Clean Water Act as amended: and
section 8001 of the Solid Waste Disposal
Act must agree to remain in the
employment of the State or local agency
that recommended the recipient for an
EPA fellowship for twice the period of
the fellowship. If the recipient fails to
perform this obligation the recipient may
be required to repay the amount of the
EPA fellowship.
{46.160 AceepUnes of teflewehlp award.
The applicant accepts the fellowship
by signing and returning the fellowship
agreement to the EPA award official
within three weeks after receipt or
within any extension of such time that
may be permitted by the EPA award
official. If the applicant does not sign
and return (he agreement to the award
official or request an extension of the
acceptance Hoe within three calendar
weeks after receiving the agreement, the
offer is null and void.
I4I.1M DuitftaeffeloveMp.
(a) Full-time fellowships will not
exceed one year.
(b) Part-time fellowships will not
exceed three yean.
-------
41006 Federal RegUtat / Vol. .49. No, 203 / Thursday. October 18. 1984 / Rules and Regulation
§0.170
(a) The fellow mutt submit EPA 5770-
7 "Fellowship Activation Notice" when
they start their course of studies (OMB
clearance number 2010-0004).
(b) If the EPA Grants Administration
Division has not received the signed
Fellowship Activation Notice within six
months following the date of the award.
EPA may terminate the fellowship.
|4ti7t Comptottan of studBee.
Fellows must submit EPA Form 5770-4
"EPA Fellowship Termination Notice."
when the fellow completes the course of
study. (OMB clearance number 201P*
0004)
|4i,tao Payment
(a) EPA will pay stipends directly to
the fellow on a monthly basis or any
other basis approved by the Project
Officer, only after EPA has received the
signed EPA Form 5770-7. "Fellowship
Activation Notice." (OMB clearance
number 2010-0004).
(b) EPA will pay the book allowance
directly to the fellow only after EPA
receives the signed EPA Form 5770-7.
(c) EPA will p.ay tuition and fees in a
lump payment directly to the sponsoring
institution only after EPA has received
the signed EPA Form 5770-7.
APPCNOII A—ENVMKMMENTAL PDOTECTION
AQCNCV FELLOWSHIP Pfloofl«M3
Omn of Mr Ham. f* «t»
*rar
One* oi Anmfi *nd
OMCi 01 3bM «MM Bid |
in o*c.
-------
Monday
March 9, 1992
Part III
Environmental
Protection Agency
40 CFR Part 47
National Environmental Education Act
Grants Regulations; Interim Rnal Rule
-------
Federal Register / Vol 57. \o 46 / Monday. March 9. 1992 / Rules and Regulations 8391
primarily directed toward the support of
noneducational research and
development:
(b) Federal agency or agency of the
United Slates means any department.
agency or other instrumentality of the
Federal Government, any independent
agency or establishment of the Federal
Government including any Government
corporation:
(c) Local education agency means any
education agency as defined in section
198 of the Elementary and Secondary *
Education Act of 1965 (20 U S C 3381)
and shall include any tnbal education
agency, as defined in { 47105(0:
(d) Not-for-profit organization means
an organization, association, or
institution described in section 501(c)(3)
of the Internal Revenue Code of 1986.
which is exempt from taxation pursuant
to the provisions of section S01(a) of
such Code:
(e) Noncommercial education
broadcasting entities meana any
noncommercial educational
broadcasting station (and/or its legal
nonprofit affiliate!) a* defined and
licensed by the Federal Communications
Commission;
(0 Tribal education agency means a
school or community college which ta
controlled by an Indian tnbe, band, or
nation, including any Alaska Native
village, which is recognized as eligible
for special programs and services
provided by the United States to Indians
because of their status as Indians and
which la not administered by the Bureau
of Indian Affairs:
(g) Refer to 40 CFR parts 30 and 31 for
definitions for budget penod. protect
period, continuation award, cooperative
agreement, grant agreement, and other
Federal assistance terms.
947.110
Any local education agency (including
any tnbal education agency), college or
university. State education agency or '
environmental agency, not-for-profit
organization, or noncommercial
educational broadcasting entity may
submit an application to the>
Administrator in response) to the
solicitations described in 147.120.
{ 47 11 S Award amount and matching
requtrefnonta.
(a) Individual awards shall not exceed
S250.000. and 25 percent of all funds
obligated under this section in a fiscal
year shall be for individual awards of
not more than 55.000
(b) The Federal share shall not exceed
75 percent of the total protect costs The
non-Federal share of project costs may
be provided by in-kind contributions
and other noncash support In cases
where the EPA determines that a
proposed project merits support and
cannot be undertaken without a higher
rate of Federal support, the EPA may
approve awards with a matching
requirement other than that specified in
this paragraph, including full Federal
funding.
{47.120 SoOcttatfon notice and propoeal
procedures*
Each Fiscal year the Administrator
shall publish a solicitation for
environmental education grant
proposals. The solicitation notice shall
prescribe the information to be included
in the proposal and other information
sufficient to permit EPA to assesa the
project.
S47.12S ENtjMe and
ote
and
(a) Activities eligible for funding shall
include, but not be limited to.
environmental education and training
programs for
(1) Design, demonstration, or
dissemination of environmental
curricula, including development of
educational tools and materials;
(2) Design and demonstration of field
methods, practices, and techniques.
including assessment of environmental
and ecological conditiona and analysis
of environmental pollution problems:
(3) Projects to understand and assesa
a specific environmental issue or a
specific environmental problem:
(4] Provision of training or related
education for teachers, faculty, or
related personnel in a specific
geographic area or region: and
(5) Design and demonstration of
projects to foster international
cooperation in addressing
environmental issues and problems
involving the United States and Canada
or Mexico.
(b) EPA shall give priority to those
proposals which will develop
(1) A new or significantly improved
environmental education practice.
method, or technique,
(2) An environmental education
practice, method, or technique which
may have wide application;
(3) An environmental education
practice, method, or technique which
addresses a skill or scientific field
identified as a priority in the report
which will be developed within two
years of enactment pursuant to section
9(d) of the Act: and
(4) An environmental education
practice, method, or technique which
addresses on environmental issue
which, in the judgment of EPA. is of a
high priority.
} 47.130 Performance of grant
(a) Each project shall be performed by
the recipient or by a person satisfactory
to the recipient and to the EPA.
Workplans shall accompany all
applications, shall identify who will be
performing activities, and shall be
approved by EPA prior to funding.
(b) Budget periods normally will not
exceed one year. Project periods may be
longer, and additional funding may be
awarded for continuations.
(c) Procurement procedures, which are
found in 40 CFR part 33 for all recipients
other than State and local governments.
Procurement procedures for State and
local governments are descnbed in 40
CFR part 31. These procedures include
provisions for small purchase
procedures.
§47.138 Dispute*.
Disputes arising under these grants
shall be governed by 40 CFR 301200 for
recipients other than State and local
governments and 40 CFR 31 70 for Slate
and local governments.
(PR Doc. 92-5263 Filed 3-6-02. 8.45 am)
SMJNG) COOS tSW-fO-H
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APPENDIXJ
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APPENDIX J
EPA ORDER 1000.25, "USE OF RECYCLED
PAPER"
-------
cPA
ClM*jfication No.. \ 6 G
Approval Oat.: JAM 2 I -9SO
Use of Recycled Paper
1. PURPOsg. This Order establishes Agency policy to
encourage the use of recycled paper.
2. BACKGROUND. The EPA has «et a goal for the nation to
reduce and recycle twenty-five percent of municipal solid waste
by 1992. One of the Keys to Baking recycling successful is the
development of stable markets for products containing recovered
materials. The Federal government needs to do its part by
purchasing such products; the EPA should be a leader in this
effort. This Order promotes this end by establishing en Agency
policy promoting the use of recycled paper.
3. POLICY, zt is Environmental Protection Agency policy
to use, and to promote the use of, recycled paper.
4. RESPONSIBILITIES. The Procurement and Contracts
Management Division (PCKD) is directed to ensure that all new
contracts specify that contractors use recycled paper for all
reports required for delivery to the Agency. Where feasible,
PCMD should seek to modify existing contracts to include the same
requirement.
The Grants Administration Division (GAD) is directed to
include in all new grants and cooperative agreements a special
condition requiring that grantees and recipients of cooperative
agreement funds use recycled paper for all reports submitted to
the Agency.
All Agency employees should be mindful of our initiatives in
the area and should do their part to reduce and^rjecycle waste.
-------
MEMORANDUM
SUBJECT: EPA Order on the Use of Recycled Paper
FROM: Harvey G. Pippen, Jr., Director
Grants Administration Division
TO: Assistant Regional Adninistrators
Regions T - x
On April 12, 1990, I issued a memorandum covering an EPA Order
on the use of recycled paper. The memorandum included a
requirement for the -elusion of special condition.
Since that time, we have received several questions and
comments on the special condition. T!;sed on these comments, we
have revised the special condition to read as follows:
"Pursuant to EPA Order 1000.25, dated January 2". 1990,
the recipient agrees to use recycled paper Jor all
reports which are prepared as a part of this agreement
and delivered to the Agency. This requirement does not
apply to reports which are prepared on forms supplied by
EPA. This requirement applies even when the cost of
recycled paper is higher than that of virgin paper."
This new version makes it clear that the recycled paper
special condition results from an EPA Order, and applies only to
reports delivered to the Agency. Also, please note that this
special condition applies to all new and continuing grants and
cooperative agreements. You should begin using it as revised
immediately.
Should you have any questions or comments regarding this
matter, please call me or have your staff contact Tom Fletcher on
382-5297.
Attachment
cc: Regional Grants Branch Chiefs, Regions I - X
bcc: Bruce Faldman
Fred Meadows
Scott McMoran
Official H. Pippen P. Hull 3. Feldman
Reading T. Fletcher R. Johnson
Division
PM-216F:TFLETCHER:tf:801 FC:382-5297:4/24/90
C:\WP50\WPFII.E\RECYCLE3.MEM
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APPENDIX K
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APPENDIX K
EPA ORDER 5730.1, "POLICY AND
PROCEDURES FOR FUNDING ASSISTANCE
AGREEMENTS"
-------
£EPA
Classification No.:
Approval Date:
5730.1
1/21/94
POLICY AND PROCEDURES FOR FUNDING ASSISTANCE AGREEMENTS
1. PURPOSE. The purpose of this policy is to establish
consistent, standard operating procedures for Regional and
Headquarters Program Offices and Grants Management Offices (GMOs)
to follow in awarding grants. While the policy and procedures
address the funding process for all grants and cooperative
agreements, it focuses primarily on new\unique assistance programs
or individual project grants and cooperative agreements not
previously funded and for which the GMOs have limited background
information. These assistance awards are other than continuing
assistance programs, are frequently new programs, Congressional
add-ons, or special projects to be funded with the Administrator's
or Regional Administrator's discretionary funds. Currently, there
is confusion regarding assistance awards resulting from
Congressional add-ons or that have no administrative procedures in
place, i.e. funds that are unexpectedly identified for assistance
awards in the fourth quarter of the fiscal year. In many cases,
the GMO is made aware of these grants late in the fiscal year.
The Headquarters and Regional Program, Budget, and Grants
Management Offices are participants in this assistance funding
process. Close coordination between and understanding of roles and
responsibilities of these key participants is vital to making the
process work efficiently. The Program Office provides the funding
and is responsible for the programmatic and technical oversight of
the assistance process to ensure the purposes of the assistance
award are achieved in a timely and high quality manner. The Budget
Office maintains assistance funds availability through control of
advices of allowance and reprogrammings to the Agency's Operating
Plan. The GMOs assure the assistance application completeness by
performing and documenting an administrative review of the
assistance application. To avoid an unmanageable assistance award
workload in the fourth quarter, there is a need for regular
communications and coordination of planning throughout the fiscal
year between these offices.
This policy addresses two concerns: (1) the need for
communication and early planning and scheduling for making awards,
and (2) identifying appropriate program elements, statutory
authorities, and delegations for such awards.
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EPA ORDER 5730.1
1/21/94
2. POLICY. It is EPA policy to award assistance agreements that
are legal, administratively correct, and support the Agency's
mission, as quickly as possible after funds become available. In
furtherance of this policy, EPA establishes the following:
a. Planning and Communication. Good management practices
dictate the need for strong communication and early planning. To
facilitate better planning, the Program Offices are encouraged to
establish an annual plan and schedule for awarding their assistance
agreements and to regularly communicate that plan and schedule to
the appropriate Budget and Grants Management Offices. To promote
earlier planning and increased communication, both Headquarters and
Regional Grants Management, Budget, and Program Offices should hold
periodic meetings, initiated by the GMOs, to reduce the impact
created by last-minute, fourth-quarter awards. These lastLminute
awards are often due to late reprogramming of funds from
Headquarters to the Regions or to grants hastily awarded to avoid
having funds carried-over and reissued for a different purpose or
Office. Both the National Program Manager and the Program Office
must recognize that the GMO needs at least 60 days lead time
(Superfund awards require 90 days) from receipt of application to
the award date to assure award of a grant by the end of the fiscal
year.
b. Program Element. Statutory Authority. Delegation of
Authority. The program element, statutory authority, and
delegation of authority are information required before EPA can
award a grant. They are documented on the EPA Assistance Agreement
- EPA Form 5700-20A. The National Program Office will verify
statutory authority, program element, and delegation of authority
before funds are sent to the Regions to award assistance. This
information must appear in a memorandum or d-mail from the National
Program Office to the Regional Program Office prior to the
distribution of the funds. The memorandum or d-mail should be
referenced on the budget reprogramming document in IFMS.
3. DEFINITIONS.
a. Approval Official. The individual within the Program
having the responsibility and delegated authority for determining
whether to fund or reject an application on the basis of
technicalVprogrammatic considerations. The Approval Official
communicates this funding decision to the Award Official through a
Decision Memorandum and\or an Assistance Funding Order (EPA Form
5700-14) .
b. Assistance Funding Process. The process by wnich
assistance funds are (1) planned in a Program Office's budget
request to OMB and Congress, (2) distributed during their operating
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EPA ORDER 5730.1
1/21/94
plan development, (3) received in an advice of allowance, (4)
committed in IFMS, and (5) ultimately routed to the appropriate
Grants Management Office for award.
c. Award Official. The individual who signs the assistance
agreement ensuring that all technical, legal, and administrative
evaluations have been made and that the proposed agreement is
awardable. The Award Official for regionally administered programs
is either the Regional Administrator, the Assistant Regional
Administrator, or the Division Director, depending upon the region
or program. The Award Officials for Headquarters are the Branch
Chief, Grants Operations Branch, and the Branch Chief, Grants
Information and Analysis Branch, Grants Administration Division,
Office of Grants and Debarment, Office of Administration and
Resources Management.
d. Carry-over Funds. Funds that are: (1) not obligated by
the "end of a fiscal year; and (2) may be obligated in the next
fiscal year according to the terms of the appropriations
legislation that first made these funds available. This term
should not be confused with 'recipient requested carryover' of
(unused, previously obligated) funds on a continuation assistance
agreement. The latter do not require any action to be taken by the
Budget Division. (Ref. - EPA Resources Management Directive System
(RMDS) Chapter 2510)
e. Comptroller's Year-End Close-Out Procedures Guidance.
Each July, the Comptroller issues guidance entitled "FY 19-- Year-
End Close-Out Procedures". This broadly distributed package
includes a schedule with cut-off dates for all end-of-year
activities associated with the Budget, Finance, 'and Grants
Administration Divisions and the Office of Acquisition Management.
It also includes a cut-off date (usually the last business day in
August) for all routine budget reprogrammings, beyond which, IFMS
security is modified so only reprogrammings approved on a case-by
case basis are processed by the Budget Division. This cut-off date
is imposed to encourage all offices to get their end-of-year
funding in place with sufficient lead time for processing the
commitment and obligation.
f. Cooperative Agreement. The agreement used when the
principal purpose of the relationship is the transfer of money,
property, or anything of value to a State or local government or
other recipient in order to accomplish a public purpose of support
or stimulation authorized by Federal statute in which substantial
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EPA ORDER 5730. 1
1/21/94
involvement is anticipated between EPA and the recipient during
performance of the contemplated activity. (Also known as an
assistance agreement.) (Ref. - Federal Grant and Cooperative
Agreement Act of 1977 and 40 CFR Part 30)
g. Decision Memorandum. The Program Office's memorandum
containing the decision and justification for either funding or
rejecting an assistance proposal. The memorandum is sent to the
Grants Management Office as part of the assistance funding package.
For grants awarded in the Regions, this decision is signed by the
Approval Official or his\her respective designee. For all grants
awarded from Headquarters (except fellowships), the Recommending
Official (RO) writes the Decision Memorandum. The Approval
Official approves or rejects the proposal based upon the
justification and recommendation made by the RO.
h. Delegation of Authority. The official basic directive to
senior Headquarters and Regional management officials to exercise
authority for the Administrator. Statutory authorities to approve
assistance agreements are assigned to EPA's Administrator and
implemented through delegation to the Regional Administrators,
National Program Managers or their designees. The Agency's
Delegation Manual identifies each delegation of authority by a
specific number. EPA's Management and Organization Division
records all delegations of authority, except emergency\letter
delegations in the Delegation Manual and distributes them to
Regional and Headquarters offices.
i. Grant. The agreement used when the principal purpose of
the relationship is the transfer of money, property, or anything
else of value to a State or local government or other recipient in
order to accomplish a public purpose of support or stimulation
authorized by Federal statute in which substantial Federal
involvement is not anticipated between EPA and the recipient during
performance of the contemplated activity. (Also known as an
assistance agreement.) (Ref. - Federal Grant and Cooperative
Agreement Act of 1977 and 40 CFR Part 31.)
j. Grants Management Offices (GMO). The Headquarters and
Regional units responsible for all business management aspects
associated with the review and negotiation of applications and the
award and administration of funded projects through audit
resolution and final close out.
k. National Program Manager The individual responsible for
management of a program on a national level.
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EPA ORDER 5730.1
1/21/94
1. Program Element. A classification within EPA's
program\budget structure which represents a distinct program
activity. The Program Element is supported by one or more
authorizing sections of law and must be associated with the grant
statutory authority. (Appears as part of Item #39 - Fiscal Data -on
EPA's Assistance Agreement.)
m. Program Office. Refers to either the Headquarters
Program Office or Regional Program Office responsible for managing
the technical\programmatic aspects of a specific media program.
n. Regional Program Manager. The individual responsible for
technical\programmatic management of an assistance program at the
regional level.
o. Statutory Authority. The section of authorizing
legislation specifically providing authority to the EPA to award
assistance agreements including grants and cooperative agreements
for the intended purpose. (Appears as Item #19 on EPA's Assistance
Agreement.)
4. PROCEDURES.
a. Planning and Communication.
(1) Program Office Responsibilities.
(a) The Program Office(s) should be encouraged to
establish an annual plan (including early identification of
additional award activities for the fiscal year) and schedule for
recommending awards and to regularly communicate that plan and
schedule to Headquarters and Regional Grants Management Offices.
In particular, the Program Office must communicate its plans for
spending last-minute money to these offices. These plans must
comply with the timetables cited in the Comptroller's Year-End
Close-Out Procedures (See definition).
(b) The Program Office should do as much
preliminary planning and work as possible (including a prioritized
list of potential projects and possibly completed applications and
workplans from potential recipients for these projects) in
anticipation of possible, last-minute, year-end funding.
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EPA ORDER 5730.1
1/21/94
(2) Grants Management Office Responsibilities.
(a) The Grants Administration Division should hold
periodic meetings with the National Program Managers/Contacts and
the Budget Division to discuss proposed assistance funding plans,
schedules, and related information and then distribute that
information to both Headquarters and Regional Grants Management
Offices so they can adjust their workload.
(b) The GMOs should hold periodic meetings with
Program Contacts to discuss proposed assistance funding plans and
to plan their workload.
(c) The GMOs must plan their workload to allow for
processing some unexpected, last-minute, fourth-quarter awards.
b. Identifying' Program Element. Statutory Authority.
Delegation of Authority.
(1) Program Office Responsibilities.
(a) The National Program Manager (NPM) should
notify the Regional Program Manager (RPM) via memorandum or d-mail,
whenever the NPM initiates a reprogramming for distribution of
assistance funds to the Region. The NPM must identify the purpose
of the funding; program element; statutory authority; delegation of
authority, and an appropriate program contact person familiar with
the project in the memorandum\d-mail. The NPM should carbon copy
the Headquarters Budget and Grants Management Office if -the
assistance is to be awarded from Headquarters or the Regional
•Budget and Grants Management Offices if the assistance is to be
awarded from the Region.
(b) The NPM must reference the dated memorandum or
d-mail on the budget reprogramming which transmits the funds to the
Regions. This reference should be entered in the justification
section of the IFMS reprogramming document. Funds provided to the
Regions for assistance projects 'should be placed in the proper
Budget Object Class (41).
(c) The NPM must include the Grants Administration
Division's (GAD) Assistance Administrative Summary Sheet in program
guidance. The Summary Sheet includes the program element,
statutory authority and the delegation of authority for the
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EPA ORDER 5730.1
1/21/94
respective assistance program. The NPM must submit the completed
Summary Sheet and program guidance to GAD for concurrence prior to
its issuance.
(d) The Program must identify and verify the match
requirement(s), if any, for the assistance against the statutory
authority, program regulation, or administrative regulation for the
assistance. In addition, the program will identify and verify the
program element and delegation of authority supporting the match.
If an application will be funded under an existing
program described in the Catalogue of Federal Domestic Assistance
(CFDA), the Program must verify that the proposed activity meets
the program's eligibility criteria published in the CFDA. If the
assistance program is not in the CFDA, the Program must identify
the eligibility requirements for the award and ensure that these
eligibility requirements agree with the statutory authority and
delegation of authority under which the grant is being awarded.
(e) The Program Office should coordinate with the
appropriate NPM, and Headquarters or Regional Budget Office to
provide the GMO with missing information if the GMO returns a grant
award\funding package to the Program Office because it is
incomplete regarding program element, statutory authority and
delegation of authority.
(f) The Program Office must designate the program
element, statutory authority, and delegation of authority in the
decision memorandum.
(g) The Program Office should refer any legal
questions such as those regarding statutory authority, match
requirements, and eligibility to the Office of General Counsel,
Grants Law Branch, or Regional Counsel.
(2) Grants Management Office Responsibilities.
(a) The GMO provides an overall "check and balance"
function, assuring the correctness of the program element and
statutory authority, and the existence of a delegation of
authority.
(b) The GMO should request clarification from the
Office of General Counsel or Regional Counsel on any outstanding
legal questions.
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EPA ORDER 5730.1
1/21/94
(c) The GMO should return, in a timely manner, all
incomplete funding\grant packages to the Program Office and should
communicate to the Program Office the information needed to
complete the package.
(d) The Grants Administration Division (GAD) and
GMOs, when appropriate, must incorporate the standard operating
procedures stated in this policy into their training programs,
e.g., project officer training, and Basic Grants course.
(e) GAD should verify that its Assistance Administrative
Summary Sheet appears in all program guidance.
5. ADDITIONAL REFERENCES.
a. For further information regarding the legal
responsibilities of the Approval Official under borrowed
authorities, refer to Sallyanne Harper's 6/9/93 memorandum,
Approval Official's Responsibilities for Grants and Cooperative
Agreements Originating and Managed in Other Offices.
b. For further information regarding the administration of
grants, cooperative agreements, and interagency agreements, refer
to the Assistance Administration Manual, EPA Document Number 5700
1984 Edition.
c. For further information regarding this Order, please
contact Chief, Grants Policy and Procedures Branch', Grants
Administration Division.
Jonathan E. Cannon
Assistant Administrator
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EPA ORDER
5730.1
1/21/94
r/EPA
United States
ENVIRONMENTAL PROTECTION AGENCY
Washington. DC 20460
ASSISTANCE ADMINISTRATIVE SUMMARY SHEET
JOTE: Quality Assurance1 Any applicant proposing anvironnrientally related measurements or data collection must comply with EPA's
requirements (or quality assurance as cited in 4O CFR Part 30.503 and 40 CFR Part 31.45.
. Operating Program/Office:
2. Program Contact(s):
Catalog of Federal Domestic Assistance (CFOA) Number:
Program Title:
Program Purpose:
. Eligible Applicants/Recipients:
7. Type of Assistance:
| j Grant
r~j Loan
i—I Cooperative Agreement
8. Nature of Assistance:
I I Continuing Program
I I Project
I. Statutory Authority:
Act:
Section:
10. Regulatory Authority:
Programmatic:
Administrative: _
11 a. Cost Shanng/Match Requirements:
Yes No
MOE
lib. Basis of Cost Sharing/Match Requirement (Check One):
Statute | | Program Regulation | |
Program Guidance | | Administrative Regulation | |
12 Limitations: Yes | | No | | (If 'Yes', list the limitations)
13 Delegation of Authority:
Delegation Number-
Title of Delegation:
14 Subject to Intergovernmental Review? Yes | | No | | (If No. why?)
15 Program Code
16. Program Element
17. Object Class
EPA 5700-51 (5-931
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ASSISTANCE ADMINISTRATIVE SUMMARY SHEET INSTRUCTIONS
1. OPERATING PROGRAM OR OFFICE: (Office establishing program.)
2. PROGRAM CONTACT(S): (Name, location and phone if of individual(s) who can be contacted for further
information on this program.)
3. CATALOG OF FEDERAL DOMESTIC ASSISTANCE (CFDA) NUMBER: (The number assigned to
an EPA assistance program for inclusion in the government-wide catalog Coordinate with Grants
Information and Analysis Branch, Grants Administration Division to determine if listing is required.).
4. OFFICIAL PROGRAM TITLE: (The official title of the assistance program. May or may not be included
in the Catalogue of Federal Domestic Assistance. (See «.) Be concise and descriptive (40 characters or
less).
5. PURPOSE: (A one or two sentence summary description of eligible activities.)
6. ELIGIBLE APPUCANTS\RECIPIENTS: (Who is eligible to receive this assistance from EPA? Often
identified in the authorizing legislation.)
7. TYPE OF ASSISTANCE: (Grant, Cooperative Agreement, Loan)
8. NATURE OF ASSISTANCE: (Continuing Program; Project)
9. STATUTORY AUTHORITY: (EPA's legal authority to fund activities; cite the Act, and the Section. As
necessary, OGC will verify statutory authority to award financial assistance as proposed and make other
legal determinations.)
10. REGULATORY AUTHORITY: (Cite programmatic regulation(s) governing the assistance program in
addition to the standard grant administrative regulations.)
11. COST-SHARINGVMATCH REQUIREMENTS: (What share must the applicant contribute to the
assistance? Is it a statutory or regulatory requirement? Reminder: For those programs-with no
statutory/regulatory match requirements, it is national policy to encourage a minimum five percent match
(to States/locals) to ensure the recipient's committment to the project. The five percent minimum is a
regulatory requirement for all educational and non-profit organizations per 40 CFR 30.307.)
12. LIMITATIONS: (What restrictions, if any, are there e.g., 10% statutory limitation on administrative costs
for 319(h) Non-point source grants?)
13. DELEGATION OF AUTHORITY: (Provide number and title of Delegation of Authority(s) for these
grants. Identifies the official(s) who have the authority to approve or reject the funding of the grant and
the official(s) who have the authority to award the grant. Management and Organization Division
coordinates Delegations of Authority for EPA.)
14. INTERGOVERNMENTAL REVIEW: (Is this required? Executive Order 12372 provides for State's nght
to review applications for Federal assistance. Coordinate with Grants Policy and Procedures Branch,
Grants Administration Division for verification of requirement.)
IS. PROGRAM CODEMDENTIFIER: (The administrative code that identifies the program and assures the
proper recording of the receipt of applications for assistance, their disposition, and related financial
transactions. It is an integral part of the assistance identification number. Obtain from GICS Policy
Specialist, Grants Administration Division.)
16. PROGRAM CLEMENT: (Budgetary classification which identifies the source of the funding; is supported
by one or more authorizing sections of law and must be associated with the grant statutory authority )
17. OBJECT CLASS: (Budgetary classification used to identify the transactions of the Federal Government
by the nature of the goods or services purchased, as required by OMB Circular A-l 1.)
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APPENDIX L
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APPENDIX L
PERFORMANCE BASED ASSISTANCE
POLICY
-------
I
''•.„*»<•
UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
WASHINGTON DC 20440
si m
TMf ADMINISTRATOR
MEMORANDUM
SUBJECTt Policy on Performjnce-Baied Assistance
FROMs Lee M. Thomas
TOi Assistan- Administrators
General Counsel
Inspector General
Associate Administrator
Regional Administrators
Staff Office Directors
Division Directors
Z am pleased to issue the attached policy on EPA's perfor-
mance-based assistance to States. This policy represents an
important step in the continuing effort to achieve environmental
results through a strong EPA/State partnership.
Our assistance to States covers a wide range of continuing
environmental programs. Zn the past* the process for developing
and managing assistance agreements has varied significantly among
programs and Regions. This policy establishes an Agency-wide
approach toward negotiating assistance agreements* conducting
oversight of those agreements* and responding to key oversight
findings. While the aim of the policy is a consistent approach
across Agency programs* it retains considerable flexibility for
Regions to tailor assistance agreements to the unique environ-
mental conditions of particular States.
This policy is effective immediately. The accompanying
Question and Answer Package explains how FY'86 assistance agree-
ments will be expected to comply with it and details the rstionale
behind major policy components.
The Deputy Administrator will monitor implementation of the
Policy on Performance-Based Assistance and issue special instruc-
tions as necessary. Z expect Assistant Administrators to advise
the Deputy Administrator of actions planned or taken to make their
program policies* guidance and procedures fully consistent with
this policy within thirty days.
-------
-2-
Regional Administrators are responsible for ensuring that
their staffs and States receive, understand and begin to apply
this policy package to their assistance activities. To assist
in its prompt and proper implementation, members of the task
force and staff instrumental in the development of this policy
have agreed to make Regional visits to explain and discuss it.
I would like to commend the task force that developed this
policy, whose members included managers and staff from EPA's
Headquarters and Regions, and State Environmental Directors,
and representatives from the Washington-based Executive Branch
Organizations. I believe they have done an excellent job and
hope their effort can serve as a model for future EPA/State
decision-making.
I look forward to strong Agency commitment to this policy.
You can be assured of my full support as EPA and the States move
forward with its implementation.
Attachments
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POLICY ON PERFORMANCE-BASED ASSISTANCE
I am pleased to Issue this EPA Policy on Performance-Based
Assistance* This document was developed by a task force composed
of representatives from EPA Headquarters and Regions* State envi-
ronmental agencies and Executive Branch Organizations to establish
a consistent. Agency-wide approach toward negotiating and managing
assistance agreements with States.
The three major components of the policy describe how assis-
tance agreements should be negotiatedt how a State's performance
against negotiated commitments should be assessed, and what actions
should be taken to reward accomplishments and correct problems.
The overall approach is one of EPA/State cooperation in setting
and attaining environmental goals through.effective State programs.
I anticipate strong Agency commitment to the principles of
this policy and look forward to the strengthening of the EPA/State
partnership I believe will result from this approach.
Lee N. Thomas Date
Administrator
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EPA POLICY ON PERFORMANCE-BASED ASSISTANCE
PURPOSE
This policy establishes an Agency-wide approach which links
U.S. EPA's assistance funds for continuing State environmental
programs to recipient performance. The approach employs assistance
as a management tool to promote effective State environmental pro-
grams. The policy's goal is the consistent and predictable appli-
cation of the performance-based approach across Agency programs
and among Regions.
Mechanisms for tying EPA assistance to a recipient's accor-
plishment of specific activities agreed to in advance are conca*..«d
in EPA's regulations governing State and Local Assistance (40 CPR
Part 35, Subpart A). The degree and manner in which EPA programs
and Regions have applied these regulations has varied greatly.
Through this policy,.the Agency articulates how it will consistently
manage its intergovernmental assistance.
SCOPE
EPA's Regions will be expected to implement the portions of
this policy governing the management of assistance agreements
("Oversight" and "Consequenc.es of Oversight" sections) upon the
policy's issuance. To the greatest extent possible* this policy
should also guide the negotiation of grants and cooperative
agreements for fiscal year 1986.
This policy supersedes all previous policies on perfloraance-
based assistance to the extent they conflict with the approach
outlined below* It elaborates on regulations governing State and
and Local Assistance (40 CPR Part 35, Subpart A) promulgated
October 12, 1982, and the General Regulation for Assistance Programs
(40 CFR Part 30) promulgated September 30, 1983. This policy does
not replace funding or grant/cooperative agreement requirements
established by Federal statutes or EPA regulations. States applying
for Federal financial assistance are required to have adequate
financial management systems capable of ensuring proper fiscal
control.
The policy complements and is in complete accordance with
EPA's Policy on Oversight of Delegated Programs (April 4, 1984)
and the Policy Framework for State/EPA Enforcement "Agreements"
(June 26, 1984).
While this policy will refer to all assistance recipients as
"States" (since States receive most of BPA's assistance for con-
tinuing environmental programs), it applies equally to Interstate
and local agencies which receive similar support.
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PRINCIPLES AHD APPROACH"
PRINCIPLES
This policy on performance-based assistance is designed to
strengthen the EPA/State partnership by ensuring that EPA assis-
tance facilitates the implementation of national environmental goals
and promotes and sustains effective State environmental programs.
The policy provides a framework within which EPA and States can
clarify performance expectations and solve problems through a system
of negotiation, according to a predictable but flexible set of
national guidelines. This framework is built around several funda-
mental principles which will also guide the policy's implementation:
o EPA will use -^rfonaance-taised assistance as a management
tool to promote and recognize the effective performance
of State environmental program*, and to ensure mutual
accountability;
o EPA Regions and programs will retain flexibility to tailor
the performance-based approach to their needs and the poliey'i
guiding principles!
o States and EPA should share a common set of expectations
regarding performance commitments and likely responses
to identified problems. There should be no surprises as
EPA and States relate to each other under this policy;
o In negotiating State- performance objectives, EPA and the
States win seek realistic cosmUtments and presume good
faith in their accomplishment;
o EPA and the States should maintain continuous dialogue
for the rapid identification, solution and escalation
of problems to top level managers;
o EPA is fully committed to the success of State environ-
mental program* and will seek opportunities to acknowl-
edge) tnelr accomplishments.
APPROACH
The policy consists of three basic parts. The first section
describes components of assistance agreements and how they are to
be negotiated. The second section lays out BPA's expectations for
the review and evaluation of assistance agreements and escalation
of significant findings. The final section describes how EPA should
respond to the findings of oversights rewarding strong performance;
applying corrective actions to solve problems; escalating signif-
icant conflicts to top management; and, in cases of persistent per-
formance problems. Imposing sanctions.
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ASSISTANCE A<5REEMgB7
Clear expectations for program performance are crucial to an
effective EPA/State partnership. Annual assistance agreements pro-
vide a key vehicle for expressing these performance expectations.
Negotiated work programs, contained in an assistance agreement, form
a fundamental basis for evaluation of State performance.
An assistance agreement should include three components* 1) a
work program; 2) identification of support (other than federal
assistance funds) a State needs from EPA to accomplish work program
commitments) and, 3) a monitoring and evaluation plan.
APPROACH
EPA will require that the -.op national priorities as iden 'led
in Agency guidance bv explicitly addressed in all State work pro-
grams. As EPA and States negotiate outputs* nat'onal priorities
should be tailored to the real environmental conditions of each State
and Region.
Assistance agreements may include outputs based on a State's
priorities if those activities promise to deliver a greater environ-
mental benefit than a national priority. Stats priorities should
represent only those activities allowable under federal statutes.
The appropriate mix of national and Stats priorities will vary
from work program to work program* according to ths uniqus features
of each environmental program in each State. Regional offices must
exercise their judgment and negotiate wi£h States over what combina-
tion of national and Stats prioritiss can dslivsr ths greatest
environmental benefit with resources available after EPA's top
national priorities have been addressed.
To better facilitate the negotiation of assistance agreements,
the Agency's Operating Guidance should be strengthened through early
State involvement in defining the order and scops of Agency
priorities, s rsslistic considsration of funding limitations
throughout its development, and specific identification of top
priorities by Program Offices.
Ths development and oversight of an assistance agreement should
be supervised by one senior Regional manager. EPA Regional Admini-
strators are ultimately accountable for all assistance agreements
made with States and should be familiar with ths significant
outputs and conditions of each agreement. They will bs respon-
sible for all major assistance-related decisions.
Assistance agreements msy be amended by mutual agreement of
the Regional Administrator and his/her State countsrpart. A major
change in national or State priorities, environmental emergencies,
and ths discovery of grsatly overestimated commitments are examples
of the types of circumstances which may necessitats renegotiation.
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WORK PROGRAM
The work program should specify the outputs a State win pro-
duce under its federal assistance award (including the State match
and level of effort) and the resources and time frames for completing
the outputs.
o Outputs should be measurable commitments, reflective
to the extent possible of real environmental results.
They should be ambitious but realistic commitments —
achievable objectives rather than lofty goals.
o Work programs should focus on the objectives a State
will meet, not how the State will accomplish an output.
o Past performance should affect work programs* The good
or poor performance of a State (or EPA) identified through
oversight she. ' * influence 'he outputs and conditions
contained in the next annual assistance agreement.
o Work programs should specifically identify completion
timeframes for outputs. EPA may also specify Interim
milestones and reporting requirements based on the
priority needs of national programs and in keeping with
good management practice. Reporting required under an
assistance agreement should be consistent with EPA's
information systems.
o States should draft their work programs but may request
assistance from EPA Regions in developing them*
o States should be encouraged to volunteer a comprehensive
work program that indicate* activities* if any, outside
Chose paid for with the federal and State funds included
in the federal assistance agreement budget. Awareness
of State responsibilitee not related to federal assistance
greatly enhances EPA's understanding of the scope of
State environmental programs. Should a State choose to
submit plans for its entire program, it need not indicate
resource) levels, but only program activities. EPA will
not examine these activities in the course of assistance
oversight except when necessary to ascertain the cause
of a performance problem or to identify the corrective
action which can best address a problem.
SUPPLEMENTAL EPA SUPPORT TO STATES
An assistance agreement should describe the types of support
EPA will endeavor to provide in addition to an assistance award to
enable a State to meet its work program outputs. Regions should
consult with Headquarters about support which will require Head-
quarters action.
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o The assistance agreement should describe the specific
research, technical advice, guidance, regulations,
contractor assistance or other support EPA will furnish
States to enable them to fulfill specific work program
outputs, making clear that accomplishment of the outputs
is contingent upon the receipt of the EPA support. If
EPA does not furnish the support described in the assistance
agreement, the Statt will be relieved of output commitments
contingent upon that support.
EVALUATION PLAN
The final component of an assistance agreement is a plan
for EPA's evaluation of State performance. The evaluation plan
should be mutually acceptable to EPA and a State.
o The plan should outline the schedule and scope of review
EPA will conduct and should identify areas the evaluation
will focus on.
o An evaluation plan must specify at least one on-site
review per year, performance measures/ and reporting
requirements.
ASSISTANCE OVERSIGHT
EPA should oversee assistance agreements both informally and
formally. Regions and States should maintain continuous dialogue
so that States may alert EPA to problems they are experiencing and
EPA can monitor Stats- progress toward accomplishing outputs. EPA
should also periodically conduce a formal evaluation of State per-
formance. Oversight should identify the successes and problems
States have encountered in meeting their commitments. Oversight
also entails the joint analysis of identified problems to determine
their nature, cause* and appropriate solution, and the escalation
of significant findings (both positive and negative) to top managers
in the Region and the State.
APPROACH
The formal assessment of State performance under assistance
agreements should occur as part of EPA's comprehensive review
and evaluation of State prograas. This process is governed by
EPA's Policy on Oversight of Delegated Programs which otates
that evaluations should focus on overall program performance
(within a given program), rather than individual actions) they
should be based on objective measures and standards agreed to
in advance; they should be conducted on-site at least once a
year by experienced, skilled EPA staff; they should contain no
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surprlses for States regarding content or expectations; and
results should be documented in a written report.
EPA should adhere to these principles of oversight and to
the scope and schedule of evaluation agreed to in the assistance
agreement.
FEATURES
o States are responsible for notifying EPA in a timely manner of
problems they experience in trying to accomplish their outputs.
Likewise, EPA is responsible for promptly notifying States of
its inability to supply promised support.
o Formal and informal evaluations by EPA should be constructive,
conducted in the spirit of promoting good performance through
problem-solving, not 1 .ult-finding.
o EPA's review and evaluation should emphasize overall performance
within each program, concentrating on the composite picture
revealed by total outputs and the quality of accomplishments.
o EPA should focus on a State's performance against work program
outputs and conditions unless other aspects of s State's program
(procedures, processes, other activities) must be examined to
analyze a problem or find its appropriate solution.
o Formal review of State performance under the assistancs agreement
will entail, at a minimum, one on-site annual evaluation of each
assistance agreement.
o Review and evaluation of assistance agreements should be con-
ducted by skilled, experienced EPA evaluators.
o Oversight findings, successes as well as problems, should be
documented to establish an accurate record of State performance
over time.
o Assistance oversight should use existing reporting and evaluation
mechanisms to the extent possible.
CONSEQUENCES OP OVERSIGHT
Once the assistance oversight process has identified and
documented areas in which States have had success or difficulty
in meeting their commitments under the assistance agreement* EPA
should respond to those oversight findings. Potential responses
range from rewards and incentives for good performance, application
of corrective actions to solve uncovared problems, and the imposi-
tion of sanctions to address persistent, serious performance prob-
lems.
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APPROACH TO OVERSIGHT RESPONSE
The Agency's goal in providing performance-based assistance
is to promote national program objectives by supporting effective
State environmental programs. Actions in response to oversight
findings will be oriented toward finding the most effective
ways to maintain or improve a State program's performance.
wherever possible, EPA should acknowledge excellent performance
and help States solve problems which impede performance through
corrective actions.
If problems regarding State achievement of work program
commitments persist, EPA should pursue corrective steps as
necessary based on experience with a given State* In general,
sanctions should be imposed only when corrective actions have
failed to solve persistent* significant performance problems.
Before taking any sanction against a State* EPA should raise
the performance issu* to the highest levels of the Region and
State necessary to negotiate an effective solution to the
underlying problem. Sanctions should not be necessary if both
parties are explicit, straightforward and realistic in their
expectations of one another and approach the assistance agreement
process in the spirit of cooperation.
INCENTIVES
o When a State meets its negotiated commitments or other-
wise demonstrates success* the EPA Regional Office
should take steps to acknowledge excellent State
performance at the conclusion of the oversight review
or at the end of the' assistance agreement period.
o EPA is committed to publicising State program success.
Assured recognition of a State's environmental achievements
is one of thtt most effective Incentives at EPA's disposal.
Publicising accomplishments also benefits States with per-
formance problems) by providing them with models for success.
o In general* when a State demonstrates steady progress or
a sustained level of high performance against negotiated
commitments, EPA will institute the most appropriate rewards
for achievement and Incentives to promote continued success.
Possible actions include but are not limited tos
- Reducing the number* level* scope and/or
frequency of reviews* reporting* or In-
spections to the minimum necessary for
effective national program management)
- Increasing State flexibility in using funds
for special projects or State priorities)
- Offering financial incentives (within existing
resources)* such as supplemental funding)
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-8-
• Publicizing program successes through joint
media presentations, awards, special letters
of commendation to the Governor, or technology
transfer to other States, EPA Regions and
Headquarters.
CORRECTIVE ACTIONS
o When oversight review uncovers a performance problem and
determines its cause, EPA and the State must act on those
findings by talcing appropriate corrective steps.
o Regions must initiate discussions with those States where
problems have emerged* and work cooperatively with them to
establish effective remedial strategies. This negotiated
strategy should specify the time frame during which EPA will
expect the problem to br resolved, and any interim milestones
that will be necessary to monitor State progress*
o Regions and States should follow a corrective action strat-
egy based on the unique history and needs of a given State.
This policy does not prescribe any particular sequence of
corrective actions which must be undertaken, nor does it
link specific corrective actions to particular types of
performance problem*.
o Possible corrective actions include but are not limited toi
providing EPA technical or managerial assistance, training,
or additional resources; increasing the number and/or fre-
quency of reporting and oversight requirements; and shifting
State resources or otherwise renegotiating the assistance
agreement.
o Zf a Region is not able to provide a particular essential
type of specialized assistance to a State, the Reqion should
bring this corrective) action requirement to the attention
of Headquarters program managers for action aa appropriate.
o The intent of this policy is to see that EPA assumes a
constructive approach in responding to State performance
problems. When corrective actions have failed, or EPA and
a State cannot agree on a corrective action, the Region
may consider imposing a sanction. Zf a sanction is contem-
plated, the performance issuo should be escalated to the
highest appropriate level of EPA and the State. The follow-
ing sequence should be observed whenever possible to ensure
that significant problems receive prompt attention and are
solved expeditiouslyi
a. The Regional Division Director responsible for
managing the assistance agreement will raise the
issue to the attention of the Deputy Regional
Adminlnstrator or Regional Administrator and advise
his/her State counterpart of this notification.
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The Regional Administrator will personally contact
the State Environmental Director or other appropriate
State manager to attempt to reach agreement on a
corrective action, and to discuss the contemplated
sanction.
National Program Managers should be advised of any
State program problems warranting a sanction, and
should be notified of any final decision to take
such action.
If negotiations between the Regional Administrator
and State counterpart fail to solve the problem,
the Regional Administrator should judge under what
circumstances notification of the Governor should
occur.
SANCTIONS
o Regional Administrators must recognise that national re-
sponsibility for any State environmental program continues
after the imposition of a sanction. They should make ar-
rangements for completion of crucial outstanding outputs
and should take steps to promote and sustain activities
the State is performing effectively*
o A» with corrective actions, any decision to impose a
sanction must be based on EPA's particular experience
with any given State. The Regional Administrator is
responsible for determining when a problem may be signif-
icant enough to warrant such action, and for determining
the appropriate type of section to apply.
o Current regulation* detail those sanctions traditionally
available to EPA. They includes step-work actions,
withholding payment, suspension or termination of agree-
ment for cause, agreement annulment, and other appropriate
judicial or administrative actions.
o Adjusting the schedule for award or payment of assistance
funds to quarterly, semi-annual, or other similar restrictive
disbursement schedules is considered a sanction under the
terns of this policy. (The customary mechanisms for the
release of funds, such as standard letter of credit
procedures, are not affected by this policy.)
o 40 CPR Part 30 Subpart L details formal procedures for
resolving EPA/State disputes concerning assistance
agreements. These procedures provide the opportunity
for a State to document the grounds for any objections
to the imposition of a sanction and for EPA to review
its decision and address the State's objections on the
basis of a written record.
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Policy on Performance-Baaed Assistance
Question and Answer Package
PURPOSE
I. What is the purpose of this policy?
This policy lays out a framework for managing EPA's
assistance to Statts for continuing environmental programs.
It ties performance against negotiated work program outputs to
federal financial assistance funds. It provides a consistent
approach for managing assistance programs through negotiating
work outputs* overseeing States1 performance against agreed
upon commitmentsr solving problem* through corrective action
strategies* and imposing sanctions when corrective actions
have failed or EPA and a Statn cannot agree on a corrective
action strategy.
Although the policy aims for a consistent approach toward
managing assistance agreements, It provides Regional managers
with flexibility to use their best judgment in applying the
provisions of this policy to specific conditions that exist
within their Regions and among programs.
TIMING
2. How will this policy affect PY'86 assistance agreements?
Any PY'86 assistance agreement negotiated after the
issuance of this policy will be expected to conform to
all of Its provisions.
Assistance agreements for PY''86 agreed upon prior to
the issuance of the Policy on Performance-Based Assistance
will not have to be renegotiated. However, EPA's Regions
will be expected to manage these assistance agreements
according to the approach outlined in the "Oversight" and
•Consequences of Oversight" sections of the policy.
PY'86 assistance agreements may be amended if a Region
and State) both agree to do so, under the terms of governing
regulations.
All assistance agreements for PY'87 will be negotiated
and managed according to this policy.
PRIORITIES
3. Why should EPA assistance support some State priorities
in addition to national priorities?
•State priorities' refer to activities which are allow-
able for funding under federal statutes and which, although
not always important enough nationwide to warrant a place
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on or at the top of the national priority list, are of
great concern to a particular State due to that State's
unique environmental conditions. Recognizing that each of
EPA's continuing environmental programs requires a combination
of Federal and State resources, EPA may direct some of its
assistance to support what States view as their most
significant initiatives, if those activities promise to
deliver a greater environmental benefit than a national
priority. (National priorities include Regional priorities).
In many instances, a State's priority activities will cor-
respond closely to the list of national priorities in a
given program, but the State may wish to distribute resources
among those activities with a slightly different emphasis.
The Regions have flexibility under this policy to negotiate
support for those activities, consistent with Program
Guidance.
4. How is the proper oalance between national and State
priorities to be achieved?
The appropriate mix of national and State priorities
will vary from work program to work program, according to
the unique features of each environmental program in each
State. After ensuring that top national priorities as
identified in the Agency Operating Guidance and Regional
Guidance are included in a work program, Regional officials
must exercise their judgment and negotiate with a State
over what combination of national and State priorities can
deliver the greatest environmental benefit given the remaining
resources available.
GUIDANCE
5. How should the Agency Operating Guidance be refined to
facilitate improved work planning?
EPA's annual Operating Guidance should clearly arti-
culate national priorities. The Agency Priority list should
be limited to those top priorities across all media. Each
Program Office should also list priority activities in its
media area, ranking them and identifying those which must
be reflected in every State work program. The Program Office
and Agency priority lists should complement one another.
EPA will involve states early on in defining the order and
scope of Agency and Program Office priorities.
EPA Regions should negotiate work program outputs based
upon priorities as identified and ranked in the Guidance.
Carefully delineated priorities will help ensure work programs
that contain clear and measureable output commitment*.
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ESCALATION
6. What is tho purpose of the escalation sequence outlined in
the policy?
The Policy on Performance-Based Assistance establishes
a problem-solving approach toward managing EPA assistance to
States. It has been designed to promote the prompt identi-
fication and resolution of any problems States encounter in
trying to fulfill the output commitmants they agree to meet.
The purpose in laying out a process by which issues can be
surfaced quickly up the chain of command in both Regions and
States is to ensure that significant problem! receive the
prompt attention of managers capable of solving those problems
expedltiously. This sequence was included in the policy to
address concern that State performance problems too fr:^ Uy
lie unattended at the lower levels of Regions and States where
they become bigger problems.
While this process calls for consultation with State
representatives and notification of the National Program
Manager, EPA's Regions are responsible for managing the
escalation sequence and rendering any final decision to
impose a sanction*
7. Under what circumstances should the escalation sequence be
followed?
The escalation sequence was designed specifically as a
mechanism for obtaining quick decisions on whether EPA will
impose a sanction on a State demonstrating performance pro-
blems. By establishing a predictable process for addressing
these major conflicts, the policy seeks to expedite, not en-
cumber with formality* resolution of the most serious problems
likely to be encountered in an assistance relationship. While
this escalation sequence applies uniquely to decisions regarding
sanctions* the policy encourages the escalation of any signi-
ficant information (positive and negative) regarding the per-
formance of a State program within both Regions and States as
appropriate.
QUARTERLY DISBURSEMENTS
8. Why does this policy classify quarterly disbursement schedules
(or similar restrictive disbursement schedules) as sanctions?
Quarterly disbursement schedules involve awarding a
portion of a State's grant each quarter or Imposing quarterly
performance-based restrictions on standard payment procedures.
The Task Force agreed that putting States on quarterly or
semi-annual disbursement schedules makes it difficult for
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States to plan their programs, which are qenerally based on
a yearly cycle. The Task Force Celt that this type of action
would signify a lack of faith in a State's ability to perform.
Consequently, the Task Force viewed this type of action as a
sanction which would reflect a State's inability to perform.
As with other sanctions, quarterly disbursement schedules,
should not be imposed before attempting to resolve the problem
through more cooperative efforts (corrective actions) or after
a demonstration of continued past performance problems by a
State. As with all sanction decisions, the decision to place
a State on a quarterly disbursement schedule should be made
at the highest level of the Region.
A quarterly disbursement schedule signifies that the
recipient's performance would be reviewed after each quarter
to determine whether full release of funds would be made
for the next quarter. Urder the policy, putting a State
on this type of schedule is considered to be a sanction.
9. Does this policy affect draw-downs under the letter of credit**
or other payment mechanisms?
The customary mechanisms for the release of funds are
not affected by this policy. For example, letter of credit
procedures, which are used by most Regions* provide a
system whereby the recipient may promptly obtain the funds
necessary to finance the Federal portion of a project, and
which precludes the withdrawal of funds froa the Department
of the Treasury any sooner than absolutely necessary.
(Payment procedures are described* in the Assistance Admini-
stration Manual, 12/3/84, Chapter 33.) However, to the
extent that Regions Impose performance-related restrictions
on letter of credit or other payment mechanism*, these
restrictions would be considered a sanction under the policy.
10. How will this policy affect States currently on quarterly
disbursement schedules?
Currently, a number of States are on quarterly disburse-
ment schedules, primarily under the RCRA program. This policy
does not prohibit the practice of imposing a quarterly schedule
on a Stats, but it do«s consider this practice a sanction.
Zt is not necessary to amend fY'85 or FY'86 assistance agree-
ments that already place States on quarterly disbursement
schedules. However, States should not automatically be either
extended or taken off of quarterly schedules for ths following
year's grant cycle. In deciding whether to continue or dis-
continue quarterly disbursements. Regions should review state
performance. A decision to continue or discontinue a quarterly
schedule should be based on the presence or absence of
performance problems, or successful or unsuccessful attempts
to resolve ths problems through corrective steps. Regional
and programatic differences call for Regional managers to
use their best judgment in making such decisions.
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11. What doee this policy imply for withholding funds for
problems that are not directly related to a State's perfor-
mance of negotiated outouts under the assistance agreement?
This policy relates primarily to a State's performance
of negotiated outputs under an assistance agreement. The
decision to withhold funds from a State for output-related
problems is a sanction which should be preceded by appropriate
corrective actions and notification of high-level managers.
However, funds are sometimes withheld for problems not directly
related to a State's accomplishment of negotiated outputs
under an assistance agreement. This may occur as a result
of problems with a State's financial reporting and accounting
system. For problems resulting from improper fiscal manage-
ment or administrative practice (but not directly related to
a State's performance on work outputs), the Regions may --
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IS. How can the assistance agreement be amended?
Both the policy and the regulation allow for the assist-
ance agreement to be amended at any time by mutual agreement
between the Regional Administrator and the State. Either
party (State or Region) may ask for amendment of the assist-
ance agreement. (See 40 CPR Part 30-700, Subpart G.)
16. Do Regions have discretion to devise corrective action
strategies and determine the timing and sequence of
corrective actions?
Yes. Regions should attempt to Implement corrective
action strategies which respond to the problem in a timely
and appropriate manner.
17. Why doesn't the policy deal with the 'quality* of outputs?
While this Policy on Performance-Based Assistance
focuses on State performance against measureable outputs,
it complements and is in complete conformance with IPA's
Policy on Oversight of Delegated Programs, which calls for
review and evaluation activities which ensure quality
State programs. Most of ERA'S programs have instituted
evaluation programs which examine not only "beans,* but
the quality of those beans. The oversight of work program
outputs should occur as part of a comprehensive examination
of State program performance.
18. Hc\. <*.u State output commitments relate Lo SPMS commitments?
EPA should always discuss with Statee any State
commitments to bo included in BPA's Strstegie Planning
and Management System. Under a system of performance-based
assistance, it is imperative that work program outputs which
are also SPMS commitments be agreed upon in advance by Regions
and States. Since poor performance may have fiscal consequences
under a performance-based system, it would bo unfair to hold
States accountable for SPMS. measures they were not aware of
or did not accept.
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APPENDIX M
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APPENDIX M
CARRYOVER POLICY (COMPTROLLER
POLICY ANNOUNCEMENT 88-09)
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UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
WASHINGTON. DC. 20400
MAY 6
COMPTROLLER POLICY ANNOUNCEMENT
No. 88-09
OFFICE OF
ADMINISTRATION
AMD RESOURCES
MANAGEMENT
MEMORANDUM
SUBJECT:
FROM:
TO:
Disposition
Assistance
ted Balances of
David P.
Comptroll
Assistant Regional[Aflministrators
Management Division/Directors
Senior Budget Officers
Regional Comptrollers
Financial Management Officers
This Policy Announcement clarifies EPA policies and
procedures for the disposition of unobligated balances of
assistance awards, i.e., grants and cooperative agreements.
It describes the circumstances when EPA may carry these funds
forward and provides specific procedures to ensure proper
accounting for assistance awards.
POLICIES AND PROCEDURES
There are three attachments to this Policy Announcement.
Attachments X and XX describe policies and procedures appli-
cable to the disposition of these funds. These policies and
procedures address all financial assistance programs except
those funded from no-year appropriations. Guidance on two of
the no-year appropriations can be found in Comptroller Policy
and Procedure Memorandum 9-F, "Recovery and use of construc-
tion Funds," and will be found in the Resources Management
Directives System 2550D, Superfund Financial Management, which
will be issued shortly.
Attachment XXI contains examples of how this guidance
applies to specific types of assistance agreements.
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EFFECTIVE DATE
Allowance Holders must ensure that assistance awards
•ade froa their respective allowances are adainistered in
accordance with this Policy Announcement no later than
June 30, 1988.
FOR ADDITIONAL INFORMATION
If you would like additional infornation on the specific
policies and procedures described in this Policy Announcement,
please contact Bob Cluck, Fiscal Policies and Procedures
Branch, Financial Management Division, at 382-5113.
Inquiries about the Agency's general policies and
procedures on the administration of assistance projects
should be made to Scott McMoran, Grants Policies and Proce-
dures Branch, Grants Administration Division, at 382-5293.
Questions concerning recoveries of funds under Agency
appropriations and about the scope of this Policy Announcer t
(i.e., the statutory authorities to which it applies) should
be directed to Rick Peterson, Budget Control Section, Budget
Formulation and Control Branch, at 382-4212.
•SUNSET PROVISIONS"
The guidance in this Policy Announcement will be
incorporated in the Resources Management Directives System
(RMDS) chapter on assistance projects (RMDS Division 2550C,
Chapter 2). This chapter, which covers all financial manage-
ment guidance relevant to assistance awards, is currently
under development and will be issued later this fiscal year.
The RMDS chapter will supersede this document.
Attachments
cc: Harvey Pippen
J. Richard Bashar
John Sandy
Alvin Pesachowitz
Vincette L. Goerl
Tony Musick
John Elliott
Carole Ansheles
FMD Branch Chiefs
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Attachment I
POLICIES FOR THE DISPOSITION OF UNOBLIGATED
BALANCES OF ASSISTANCE AWARDS
Accounting for the disposition of recipients' unobligated
balances of assistance awards requires at least two actions: a
downward adjustment to one budget period's funding and a comple-
mentary accounting entry to show the disposition of those funds.
Regarding the disposition of unobligated balances of project
type assistance awards, these funds generally remain available
to recipients until the project is completed. With respect to
continuing environmental programs, funds can be made available
in subsequent budget periods only if the source appropriation
for those funds has not expired. A detailed description of these
policies is found below in Section II. The policies are also
summarized on the chart following page 4 of this Attachment.
I. BACKGROUND AND BASIS FOR POLICIES
A. EPA Appropriations. Each year EPA receives several
appropriations from Congress to fund the numerous programs for
which it is responsible. Besides appropriating funds to pay our
internal expenses, Congress also gives EPA appropriations that
are intended to fund a wide variety of assistance agreements
(grants and cooperative agreements), among other things.
The appropriations may limit the time periods within which
the funds are available for Agency obligation. Grants and co-
operative agreements are generally funded under either two-year
or "no-year" (i.e., indefinite period) appropriations.
When Congress limits the time period in which funds are
available, it increases its control over the resources available
to EPA to carry out authorized programs. If EPA does not obli-
gate appropriated funds for assistance awards or other approved
purposes during the life of the appropriation, the funds will
expire. Should Congress wish to fund activities in subsequent
periods, new funding would be provided in later appropriations.
In contrast* when Congress appropriates "no-year" funds,
these funds remain available until fully expended — they do
not expire. Both the Construction Grants Program and Superfund
activities have historically been funded with such appropriations.
Congress may choose to add to the /gency'e "no-year" balances
through subsequent appropriations.
B. EPA Assistance Awards. When EPA awards a grant or cooperative
agreement, the agreement defines a specific "budget period" during
which the funds obligated by EPA are available to the recipient.
Assistance agreements also define the project period, which is the
length of time EPA specifies to complete the "project" described
in the agreement. The project period may be made up of one or more
budget periods. (In some cases, such as the Asbestos School Hazard
Abatement Act program, it may be appropriate to have open-ended
work progrees milestones or similar criteria.)
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The recipient (e.g., a State or local government agency,
or a university) uses the EPA award as its authority to enter
into its own "obligations" }_' for internal expenses, contracts,
etc., to carry out program/project objectives during the budget
period. For various reasons, a recipient nay not be able to
obligate all the funds awarded by EPA. At the end of each budget
period the recipient must report any "unused" funds to EPA on
their Financial Status Report. The "unused" amounts are shown as
the unobligated balance of Federal funds. The final disposition
of those unobligated balances depends on several factors, as
A \ • «•!*•• mA i n Gmr>+ i «« T T HA 1 MU
discussed in Section II below.
c. GAP Review. In 1984 GAO reviewed EPA compliance with the
Federal Managers Financial Integrity Act (FMFIA). In that re-
view, they raised questions about EPA's apparent inclusion of
unexpended balances carried forward to grants several years
after the source appropriation expired. As a result, in our
letter to the President on FMFIA weaknesses, we made a commit-
ment to review our current practices for making recipients'
unexpended bala.._js available in later budget periods. T..-
policies and procedures set out in the following sections are a
result of that review and seek to strengthen our management of
those funds.
II. GENERAL POLICIES
a. Adjustments for Unobligated Balances. EPA assistance
awards are recorded as Agency obligations in EPA's Financial
Management System (FMS). They are identified in FMS by obliga-
tion document numbers, which are derived from the assistance
identification number that EPA assigns to the assistance award.
Both a project number and budget period are encoded in this
identifier.
When adjustments are to be made to obligation balances,
they must be supported by written amendments to the assistance
agreement that established the original obligation. Assistance
award officials must provide to their servicing financial manage-
ment offices (FMO) copies of the documents used to effect the
amendments.
b. Decreases in Obligation Amounts. Decreases in budget
period funding levels typically occur after a budget period ends
£/ In order to understand and implement the policies and procedures
"" described in this document, it is very important to distinguish
between EPA obligations and recipient obligations.
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and the recipient determines what, if any, portion of the award
was unused (i.e., unobligated by the recipient) during the budget
period. However, decreases could be executed for various reasons
during the budget period. In either case, the adjustments must
be properly documented and provided timely to the FMOs, as noted
above.
The financial management office (FMO) will record the
decreases in budget period funding in the Financial Management
System (FMS). The accounting procedures are outlined in section
III.of this attachment. Whether the decreases against one bud-
get period may be available in a subsequent budget period depends
on the factors described below.
c. Disposition of Adjusted Amounts. Unobligated balances of
assistance awards from one budget period have generally been made
available in subsequent budget periods either as additional fund-
ing for the later budget period or as partial funding in lieu of
a like amount from a new Agency appropriation. However, before
taking either action, an award official must first determine
which of the fo! -wing criter-« fit:
1. Project agreements. Project type assistance agreements
involve undertakings with a discrete outcome, product or report.
Most of EPA's assistance agreements awarded in Headquarters are
examples of this type, although project agreements may be made
in the regions and by other EPA offices as well. The project
periods and funding for these projects are often provided incre-
mentally over several.years. Any reports submitted at the end of
a budget period, or at any time prior to the final report, product
or outcome, would be merely informational and are not independent
or separate from the final project outcome, product or report.
Criterion: With respect to project agreements, unobligated
funds from one budget period may be made available
in a subsequent Budget period of the same project
by properly executing an assistance amendment as
long as the general project scope of work remains
unchanged. Zf there are major changes in the scope
of work, the unexpended balances may be carried
forward only if the source appropriation for those
balances has not expired prior to the date of the
amendment.
2* Continuing Environmental Program and Other General Support
Assistance Agreements.In addition to project type assistance, EPA
provides funding for a number of environmental programs or other
continuing activities. The recipients are often State or local
governments, but may include organizations involved in general
research activities.
Criterioni With respect to program agreements, unobligated
balances from one budget period of a continuing
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environmental program or activity may be made
available :n a subsequent budget period of that
program c activity as long as: 1) the transfer
to the subsequent budget period is made before
the source appropriation for those funds'expires,
and 2) the assistance agreement includes a
special condition limiting the recipient's
obligation of these funds before the end of
the subsequent budget period or within one year
of the amendment, whichever is earlier.
3. Recoveries of Assistance Award Balances. If a recipient's
unobligated balances will not or cannot be available in a subse-
quent budget period, the downward adjustment will be considered a
recovery to the source appropriation.
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DEPOSITION OF UNOBLIGATED BALANCES OF ASSISTANCE AWARDS.
WHEN CAN I CARRY FORWARD FUNDS?
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Attacnmerr
PROCEDURES FOR THE DISPOSITION OF UNOBLIGATED
BALANCES OF ASSISTANCE AWARDS
I. TRANSFER OF FUNDS FROM ONE BUDGET PERIOD TO ANOTHER
Transfers of funds from one budget period to another must
b« documented by the execution of two complementary and concur-
rent EPA Assistance Agreement/Amendments (EPA Form 5700-20A).
(EPA1s optional amendment form, 5700-20B, or other appropriate
form, may be used in the following procedures in lieu of the
5700-20A to amend agreements as long as the same accounting
information outlined below is included on the form.) The
executed forms must be provided to the servicing financial
management office when signed both by EPA and the recipient.
The first Form 5700-20A/B will decrease funds awarded for
the earlier budget period. For the succeeding budget period, the
second 5700-20A/B may: 1) provide interim funding, 2) increase
the funds availal or 3) replace "current year" (i.e., new
obligational authority) funds. In the last instance, the dis-
placed funds could be used by the regions as discretionary funding
for other approved purposes.
a. Decrease to prior budget period. In order to decrease
funds awarded for one budget period, so that they may be carried
forward to a subsequent budget period, a Form 5700-20A/B must be
completed and signed by the Award Official. If a decrease is
made before the end of the budget period, or at any time without
the support of a signed FSR or other signed authorization, the
Form 5700-20A/B must be signed by the recipient's authorizing
official.
In lieu of the recipient official's signature on the 5700-20A/B,
an award official can use the recipient's interim or final FSR if
the FSR: 1) covers the full budget period, and 2) is signed by an
authorized recipient official. If this option is used, the award
official must provide the FSR along with the 5700-20A/B signed
by the award official to the Financial Management Official to docu-
ment the transaction.
The financial data will be entered on the Form 5700-20A as
followsi
1) Item 1. The assistance ID in item 1 serves as the
obligating document number for the Financial Management System
(FMS), thus serving as a common data element for grants and
finance.
2) Item 22. The narrative in this item will include a
brief description of the action being taken by this amendment to
the original award.
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3) Item 30. Item 30 ("EPA Amount this Action") will include
the former award, the amount of the decrease in "( )" and the
amended total. [(The financial management office will use Trans-
action code 050.2 to record the decrease in the Financial
Management System (FMS)].
4) Items 34 and 38. Items 34 (Recipient Contribution) and
38 (Allowable Project Cost) will be modified to show the effect,
if any, of this amendment on these categories.
5) Item 39. Item 39 (Fiscal) includes the standard accounting
information for the funds being transferred. The amount of the
decrease will be entered in parentheses in the last block on that
line.
b. Transfer to Succeeding Budget Period. A properly completed
Form 5700-20A must also be executed to make prior year balances
available, where allowable, for the recipient's obligation during
the succeeding budget period. The financial data will be entered
as follows:
1. Item 1. Again, the assistance ID will be entered here.
2. Item 22. A brief explanation of the action will be
included in the narrative.
3. Item 30. This item would be completed only if the amount
of the award for the "current" budget period were being decreased,
i.e., the amount being carried forward was displacing current year
funds. The amount of the decrease would be placed in "( )."
4. Item 32. This item will include the former award,- if any,
the amount being transferred forward from the prior budget period,
and the amended total for this category of funds. (The financial
management office will use Transaction Code 059.1 to record the
increased amount available under this obligation document number.)
5. Items 34 and 38. Items 34 (Recipient Contribution) and
38 (Allowable Project Cost) will be modified to show the effect,
if any, of this action on these categories.
6. Item 39. Item 39 (Fiscal) includes the standard accounting
information for the prior budget period's funds that EPA is trans-
ferring to this budget period for the recipient's obligation. The
dollar amount being brought forward will be entered in the last
position on that line, following the other accounting data.
If the amount being transferred forward is intended to displace
amounts already awarded from current year funds, a second line of
accounting data must be entered on line 39. The data would be the
accounting information associated with the decrease, and the amount
of the decrease would be placed in parentheses in the final block
of that line item.
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If the less structured Form 5700-20B is used to execute the
preceding actions, the saae information must be contained in
readily identifiable fora on that document.
II. DISPOSITION OF AWARD BALANCES AT END OF A CONTINUING
ENVIRONMENTAL PROGRAM OR AT EKD OF PROJECT PERIOD FOR OTHER
ASSISTANCE PROJECTS
If a continuing environmental program is terminated, or
whenever a project period ends for other types of assistance
awards (e.g., project type agreements), the FSR for these pro-
jects may contain balances of Federal funds unobligated by the
recipient. In such a case, a Form 5700-20A/B must be completed
to decrease the award by that amount. The 5700-20A/B and FSR
will be submitted to the servicing financial management office
so that the deobligated amount can be recorded in EPA'a FMS.
The deobligated amount would create a recovery to the source
appropriation. Detailed information on recoveries is found in
Office of the Comp' -oiler Policy and Procedure Memorandum (PPM)
13-B, "Overrun and Recovery of .rior Year Obligations." This PPM
was amended in part by the OC memorandum of September 12, 1984,
entitled "Recertification of Funds," and is being revised.
III. DEOBLICATION OF EXPIRED FUNDS
Generally, effective management of assistance awards and
timely processing of financial reports (e.g., the FSR) both by
the recipient and by EPA can keep expired, unavailable amounts
to a minimum. Charging outlays first against older funding
sources of an assistance agreement, where otherwise appropriate,
is one way of avoiding the loss of funds.
In the following two instances, deobligations would be
necessary. First, an assistance recipient might submit a final
FSR for a program grant budget period after the Appropriation
which originally funded that budget period had expired. If the
recipient reports on that FSR that they have an unobligated
balance of Federal funds, EPA would prepare a 5700-20A to docu-
ment the decrease and to use as a basis to record a corresponding
deobligation in FMS. Second, if as a result of an audit, costs
are disallowed and the source of funding for these costs has
expired, the amount of the receivable for the disallowed costs
would be deobligated.
IV. FUNDING BUDGET PERIODS THAT EXTEND BEYOND THE LIFE OF AN
APPROPRIATION
In some instances, assistance project budget periods are not
concurrent with the Federal fiscal year. When they are not con-
current, a budget period could very possibly be funded by an
appropriation that expires before the budget period itself ends.
Such awards are allowable am long as EPA's obligation of the
assistance funds occurs before the source appropriation expires.
In the case of amendments transferring unobligated balances
to a subsequent budget period, the criteria in Attachment I.
Section II.c must also be met.
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Attachment III
APPLICATION OF POLICIES AND PROCEDURES
ON THE
DISPOSITION OF RECIPIENT UNOBLIGATED BALANCES
The following examples show how EPA's policies and procedures
on the disposition of recipient unobligated balances would apply
to CPA assistance projects. In reality, of course, how these
rules apply to any specific assistance project will be affected
by many possible variables. These variables include the State
fiscal year (whether it is coincident with the Federal fiscal
year or not), the type of assistance program, differing regional
practices, when the action was taken (before or after the end of
the budget period), the options chosen for the disposition of the
funds, etc. Nevertheless, these examples should be helpful.
EXAMPLE A — Continuing Environmental Program, Unexpired
Appropriation
EPA awarded a $1,000,000 grant to a State for a continuing
environmental program. The one-year grant budget period covered
the grantee's fiscal year. The award was recorded as an EPA
obligation in EPA's Financial Management System (FMS).
The award was made from a regional allowance for Fiscal Year
1987, and the obligation for that award was recorded against
the 1987 account number for that program and region. (The allow-
ance was derived from the Agency's 87/88 Abatement, Compliance
and Control (AC6C) appropriation.)
The State made its own obligations against the EPA award
during the budget period. As the State needed funds to pay pro-
gram costs, it drew down funds from EPA through its letter of
credit and contributed its own required cost share.
Shortly after the end of the fiscal year, the recipient
submitted a Financial Status Report (FSR) that shows an unobli-
gated balance of $50,000 in Federal funds after paying all their
allowable costs for the budget period. The FSR thus established
at $950,000 EPA's share under the grant agreement for the State's
costs for that year. To accurately account for this assistance
award, the Region prepared a 5700-20B showing the reduction, and
provided a copy (along with a cop/ of the FSR) to their financial
•anagement office (FMO). The FMO recorded the downward adjustment
using Transaction Code 050.2, and the accounting data for those
funds.
Based on earlier discussions with the State, the Region had
agreed to make the $50,000 available as additional funding in the
then-current budget period. Before the appropriation expired, an
amendment increased the current year funding.
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The amendment was provided to the FMO with the documents
effecting the decrease. The FMO recorded the increase against
the current year obligation document nunber using Transaction
Code 059.1, and the accounting data for these funds.
EXAMPLE B — Continuing Environmental Program, Expired
Appropriation
In the previous example, all the necessary actions to make
these funds available in the subsequent budget period, including
execution of the amendment, occurred before the appropriation
expired. Assume in Example B that there were delays in the
submission of the FSR.
The Region had intended to take the balances remaining from
the prior budget period and substitute them for current year
funds awarded for the grantee's ongoing budget period. The cur-
rent year funds would have then been available to the Region.
However, the FSR was •^t received until after the source appro-
priation had expired. Because the appropriation had expired,
the recipient's $50,000 in unobligated balances were no longer
available to the Agency, the Region or the recipient.
To ensure proper accounting for the Agency's funds, the
•ward official was responsible for executing an assistance amend-
ment to document the decrease in the Agency's estimated liability
(i.e., obligation) for the assistance agreement. The amendment
and FSR were provided to the FMO, who recorded the decrease, which
is reflected in FMS, as a recovery to the expired appropriation.
EXAMPLE C — Project Agreement, Availability of Funds in the
Second and Later Budget Periods
The Headquarters Grants Operations Branch awarded a research
cooperative agreement to a University tctsupport investigation of
the environmental fate of certain pesticides. At the end of the
project, the recipient was required to provide a detailed final
report of the project and findings.
For effective oversight and administration, the project
period was divided into three budget periods. At the end of each
budget period, and at other times during the project, the Univer-
sity researchers would submit progress reports to EPA. These
reports merely provided information which was not independent or
separate from the final project outcome, product or report.
Using an unexpired RfcD appropriation as its source of funding
EPA made the initial award (budget period "01") for the project
late in Fiscal Year 1986 (see Figure 1 on next page). The project
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proceeded satisfactorily during budget period "01," and the
University submitted a continuation application for budget period
"02." EPA provided incremental funding for this project through a
continuation award (budget period "02") made late in Fiscal Year
1987. A third, and final, budget period was approved in Fiscal
Year 1988 to conclude the project.
Figure 1 — Example B
FY 1986 FY 1987 FY 1988 FY 1989 FY 1990
T
T
T
B.P. "01" B.P. "02" B.P. "03"
During early fiscal year 1988, the University submitted its
final FSR for budget period "01." The FSR reported that $10,000
of the original award was unused, and requested that these funds
be nade available in budget period "02" for continued work on the
project. Upon approval from the Office of Research and Develop-
ment, the award official executed an amendment to make these
funds available in addition to the previously awarded amounts for
budget period "02." As costs were incurred and drawdowns made
during Fiscal Year 1988, the drawdowns wAe charged off first to
the funds awarded for budget period "01."
The recipient's unobligated balances for budget period "02"
were reported in budget period "03," during our Fiscal Year 1989.
Again, the balances were made available, but in this instance
no additional funding was required to complete the project. Thus,
Fiscal Year 1988 funding awarded for budget period "03" was re-
placed by the funds made available from budget period "02."
The source appropriation for these "displaced" funds was the two-
year RtD appropriation available for obligation in Fiscal Years
1988 and 1989. and therefore these funds became available for
the Budget Division to recover and reissue.
The FSR for budget period "03" contained unobligated balances
am well, but since the project was now over, the balances were
treated as recoveries to the appropriation.
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APPENDIX N
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APPENDIX N
USE OF DISADVANTAGED BUSINESS
ENTERPRISES (DBE)
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UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
WASHINGTON. D.C. 20460
JAN 151992
C OP
THE MJMWBTHATOR
MEMORANDUM
SUBJECT: The 8% Plan for the Utilization of Disadvantaged Business
Enterprises in Procurement Under/Assistance Programs
FROM: F. Henry Habicht I
Deputy Administra '
TO: Assistant Administrators
General Counsel
Inspector General
Associate Administrators
Regional Administrators
Staff Office Directors
Laboratory Directors
On February 15, 1991, the Agency issued guidance entitled "FY-
91 Program for Utilization of Disadvantaged Business Enterprises in
Procurement Under Assistance Programs11. That guidance implemented
the 1991 Appropriations Act, P.L. 101-507, which authorized EPA to
establish a minimum 8% goal for the use of disadvantaged business
enterprises in all procurements under its assistance programs.
In the Conference Report to EPA'a FY-92 Appropriation Act, the
conferees reaffirmed their support for this program. Based on P.L.
101-507 and the Conference Report, EPA will continue to establish
an 8% goal each fiscal year. Accordingly, the plan, as cited in my
February 15, 1991 memorandum, remains in full force and effect.
I am positive that each of you will join me in making this
commitment work.
Should you have questions regarding the technical application
of this plan, the Office of small and Disadvantaged Business
Utilization stands ready to offer any assistance deemed necessary.
All requests for information on this program should be directed to
John H. Ropes, Director, Office of Small and Disadvantaged Business
Utilization, or George K. Mori., Senior Program Officer. John can
be reached at FTS 365-7777 and George on 365-6301.
on Ricydid f»p*
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UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
WASHINGTON, DC. 20460
FE3 I 5 1991
OFFICE OF
THE ADMINISTRATOR
MEMORANDUM
SUBJECT: FY-91 Program for Utilization of Disadvantaged Business Enterprises
in Procurement Under Assistance Programs
FROM: F. Henry Hablcht, II \
Deputy Administrator f
TO: Assistant Administrators
General Counsel
Inspector General
Associate Administrators
Regional Administrators
Staff Office Directors
Laboratory Directors
On November 5, 1990, President Bush signed into lav, the 1991
Appropriations Act, P.L. 101-507, which Includes the appropriations for
the Environmental Protection Agency.
The Administrative Provisions of this Act contains the following
language:
"The Administrator of the Environmental Protection Agency
shall, to the fullest extent possible, ensure that at least 8 per•
centum of Federal funding for prime and subcontracts awarded in
support of authorized programs, Including grants, loans and contracts
for vastevater treatment and leaking underground storage tanks grants,
be made available to business concerns or other organizations owned
or controlled by socially and economically disadvantaged individuals
(within the meaning of Section 8(a)(5) and (6) of the Small Business
Act (IS U.S.C. 637(a)(5) and (6)), Including historically black
colleges and universities. For purpose of this section, economically
and socially disadvantaged individuals shall be deemed to Include
women.;."
As a result of the above, EPA is required to establish a minimum eight
percent goal on all procurements emanating from any grant, cooperative
agreement or loan awarded during FY-91. This will, of course, also
include cay new procurement und-jr FY-91 grant amendments which involve
the use of additional Agency funds.
Fruttd. aw RtcycltA Faptr
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- 2 -
The enactment of this section will also require grant or cooperative
agreement recipients who, In the past, have not been required to establish
a "fair share" objective or to report on their procurement activities,
to now conduct both. An example of such activity will Include those
recipients who heretofore came under the authority of OMB Circular A-110.
These recipients were primarily universities and colleges, non-profit
organizations and hospitals. As stated, these entitles were required to
negotiate a "fair share" objective and to use positive efforts to assist
disadvantaged (minority and women) businesses. However, such recipients
were not required to report on their activities concerning these business
elements. With the passage of P.L. 101-507, these recipients are now
required to report on an annual basis. Additional information is covered
In the attachment on how a recipient may operate In order to meet the 8
percent requirements.
Congress has also directed that the Administrator shall repor* upon
conclusion of the fiscal year, the Agency's efforts in achieving the minimum
8 percent level.
A review of all program activities should be undertaken to determine the
extent in which the 8 percent goal for disadvantaged businesses may Impact
your programs. A special attachment has been prepared to assist you in
assuring that you have considered all aspects on the Impact of this
section of current lav on EPA's procurement under assistance programs.
All of the requirements cited in the attachment are effective as of
October 1. 1990.
I am positive that each of you will join me In making a firm commitrent
to enhance the utilization of disadvantaged businesses, Including the Histori-
cally Black Colleges and Universities in all Agency programs. Working together
we can achieve a more equitable distribution of Federal dollars to the benefit
of the underutilized segment of our Nation's economy.
The Office of Small and Disadvantaged Business Utilization (OSDBU)
is prepared to offer technical assistance to individuals who are assigned
responsibility In these areas. All requests for information on this
program should be directed to John M. Ropes, Director, OSDBU, or George
Mori, Senior Program Officer. John can be reached at FTS 557-7777 and
George on FTS 557-9301.
Attachment
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L'.S. ENVIRONMENTAL PROTECTION AGENCY
Disadvantaged Business Enterprise Program Plan
Financial Assistance Programs
I. BACKGROUND.
Under the authority of Executive Orders 11625, L2432 and 12138, :p.e
\gency established annual objectives for minority and women-owned businesses.
These objectives are accomplished by mandating that the recipient and tne
prime contractor carry out six affirmative steps if any subcontracting was
to be performed.
The Executive Orders also provided the authority for the Agency to require
quarterly reporting from the States and local governments to inform the \geacy
how well they were doing in meeting their "Fair Share" objectives.
Prior to Fiscal Year 1991, the Environmental Protection Agency's (EPA's)
""air Share" polic> ~^r utilization of small, minority and women-owned =1-
nesses applied to State and local governments only and did not affect univer-
sities, colleges, hospitals and other non-profit institutions which came under
the purview of OMB Circular A-110. Under that Circular institutions of higher
education and other non-profit organizations had only to exert "positive efforts"
in their attempts to utilize small and minority businesses. Idltionally, all
of the non-profit institutions and universities were exempt r:om any reporting
requirements.
II. GENERAL INFORMATION.
A. This Plan sets forth the manner in which EPA proposes to implement
the requirements of the Administrative Provisions pertaining to the 8 percent
objective for Disadvantaged Business Enterprises, (DBEs), required by Public
Law 101-507.
B. The Office of Small and Disadvantaged Business Utilization (OSDBU), is
responsible for developing policy and providing procedural guidance for the
utilization of disadvantaged businesses under the Agency's financial assistance
programs.
III. SPECIFIC INFORMATION.
In EPA*a FY-1991 Appropriations Act, Congress requires EPA to ensure, to
the fullest extent possible, that at least 8 percent of Federal funding for
prime and -subcontracts awarded in support of authorized EPA programs for FY-9L
go to businesses or other organizations owned or controlled by socially and
economically disadvantaged individuals (see VII. "definition"). Accordingly,
any grant, cooperative agreement or loan awarded by EPA in FY-91 must stipulace
that a minimur objective of 81 of such funding be directed to DBEs.
To the extent that the requirements of OMB Circulars A-102 and A-110 as they.
pertain to the utilization of minority and women-owned businesses conflict with
the FY-91 Appropriations Act language, the Circular provisions are superseded.
State government agencies receiving EPA funding will be required to escablisn a
minimum 8Z "Fair Share" objective for disadvantaged business utilization .n
contracting for goods and services in their grants, cooperative agreements and
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loans, including State Revolving Fund (SRF) loans. Likewise, institutions
of higher education, hospitals and other non-profit organizations receiving
grants, cooperacive agreements or loans, including chose for researcn anc
development (other than research awards under che Clean Air Act) will be suajec:
to the same requirement, "positive efforts' (as required in OMB Circular A-llu)
for the utilization of small businesses and minority Dusinesses are not suf-
ficienc to meet the requirement of ?.L. 101-507.
The AsproDriations Act soecirically includes Historically Slac* lollages
and Universities (HBCUs) as part of tne definition of DBEs. Therefore, £?A
will require that all recipients, including institutions of higher ecucacior..
include HBCUs, in their definition of DBEs.
The following is taken verbatim from P.L.. 101-507 signed by che Presiaer.t
on November 5, 1990. The Administrative Provisions contains the foilowi-.g
language:
"The Administrator of the Environmental Protection Agency
shall, to the fullest extent possible, ensure that at least 8
percentum of Federal funding for prime and subcontracts awarded
_n support of authorized programs, including grants, loans, and
contracts for wastewater treatment and leaking underground stor-
age tanks grants, be made available to business concerns or other
organizations owned or controlled by socially and economically
disadvantaged individuals (within the meaning of Section 8(a) (5)
and (6) of the Small Business Act (15 U.S.C 637(a) (5) and (6),
including historically black colleges and universities.
For purposes of this section, economically and socially disad-
vantaged individuals shall be deemed to include women "
Therefore, it is imperative that all EPA program managers understand
that the requirements for utilization of disadvantaged businesses in the
award of prime and subcontracts have changed considerably.
IV. AUTHORITY.
The Administrative Provisions of the EPA's FY-91 Appropriations Act,
P.L. 101-507, is the Agency's statutory authority for ics "Fair Share" policy
in FY-1991.
V. POLICY.
It is EPA policy chat recipients of EPA financial assistance awards utilize
the services of DBEs to the maximum extent practicable. P.L. 101-507 establishes
a minimum objective of 82 of total contract and subcontract awards. It is EPA's
policy that such business entities be afforded the maximum practicable opportunity
to participate as contractors, subcontractors, suppliers and otherwise in EPA
awarded financial assistance programs. This policy applies to all contracts and
subcontracts for supplies, construction, equipment and services under EPA grants,
cooperative -gzeements or loans awarded in FY-91. For the SRF program, che policy
applies to funds orovided to States in Capitalization grant awards in FY-91.
Recipient's small purchases are also subject to this policy.
VI. OBJECTIVE.
The objective of the Disadvantaged Business Enterprise Program Plan is :o
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- 3 -
encourage recipients and cheir prime contractors to seek out DBEs as subcon-
tractors to the maximum extent possible.
VII. DEFINITIONS.
The following definitions are used in this Plan. The definitions as
cited herein are for use of grant-making personnel and small and disad-
vantaged business utilization officers to assure consistency.
A. Disadvantaged Business Enterprise (QBE). DBE is a business concern
which meets the criteria of Sections 8(a) (5) and (6) of the Small Business
Act (15 U.S.C. 637(a) (5) and (6)). Sections 8(a) (5) and (6) are cited below:
1. Socially disadvantaged individuals are those who have been
subjected to racial or ethnic prejudice or cultural bias because of their
identity as a member of a group without regard to their individual qualities.
(Section 8(a) (5)).
2. Economically dtsadvancaged individuals are those social!v disad-
vantaged individuals wtv^e ability to compete in Che free encerprise system has
been impaired due to diminished capital and credit opportunities, as compared
to others in the same business area who are not socially disadvantaged. In
determining the degree of diminished credit and capital opportunities, the
Small Business Administration shall consider, but not be limited, to the assets
and net worth of such socially disadvantaged individuals. In determining the
economic disadvantage of an Indian tribe, the Snail Business Administration
shall consider, where available, information such as the following: The per
capita income of members of the tribe excluding judgement awards, the percentage
of local Indian population below the poverty level, and the tribe's access to
capital markets. (Section 8(a) (6)).
For purposes of this definition, individuals who are socially
disadvantaged shall include the following:
a. Black Americans.
b. Hispanic Americans.
c. Native Americans.
d. Indian Tribes.
e. Asian Pacific Americans.
f. Native Hawaiian Organizations.
g. Women.
h. Historically Black Colleges and Universities.
B. Historically Black Colleges and Universities (HBCUs). The HBCUs
are identified by the Deparcment of Education Listing of Minority Colleges
and Universities. The authority vested in the Department of Education by
law and Executive Order 12320 dated September 15, 1981, is included as
Attachment No. 1. For purposes of the above cited documentation the Depart-
ment of Education recognizes HBCUs as any institution established prior to
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1964. A copy of the Listing of predominantly minority institutions,
including HBCUs is included as Attachment No. 2.
C. Plan. EPA's proposed program of action for the utilization of DBEs
in financial assistance programs. The Plan will contain, as a mimama,
methods for encouraging grant recipients and their prime contractors to
utilize DDEs.
D. Financial Assistance. The term financial assistance is synonymous
with "grant-making" in the Act, and is meant to include any Federal support
whenever the principal purpose of the relationship is the transfer of mone>,
property, services, or anything of value to a State or local Government, or
other recipient, in order to accomplish a public purpose of support or
stimulation authorized by Federal Statute.
E. Goal. The use of the term goal or goaling is to be used synonymously
with "Fair Share" objective. A recipient's minimum objective will not be less
than 8% of all extramural funds contained in the award document. Recipients
must establish a separate "Fair Share" objective for both minority business
enterprises (MBEs) and women-owned businesses (WBEs). HBCUs will be included
in the MBE objective.
VIII. THE DISADVANTAGED BUSINESS ENTERPRISE PLAN FOR FINANCIAL ASSISTANCE
PROGRAMS.
A. The Plan. EPA's plan is to require that each financial assistance
agreement awarded by EPA in FY-91 contain a requirement for a minimum goal of
8% for DBEs. In order to accomplish this goal, States will have to look more
closely at their overall spending with respect to extramural funds and to place
greater emphasis on projects where the chances to exceed the minimum can be ex-
pected. This will allow the recipient to lover their goal on projects having
few or no qualified DBEs available to perform the work; conversely, it will re-
quire higher goals being established in areas having substantial qualified DBEs.
Recipients below the State level must use their resources wisely in order co
meet the minimum 8Z goal for DBEs.
B. Implementation. With the passage of P.L. 101-507, the following
implementation activities are now required:
1. Program. Each program will need to immediately examine
its FY-91 plans for extramural expenditures to identify areas, projects and
activities that will need to direct their efforts toward complying with the
above statutory requirements. Each grant, cooperative agreement or Loan awarded
in FY-91 will contain a special coi.dition establishing a minimum goal of 8* for
the utilization of DBEs, including HBCUs, in the award of prime and subcontracts.
However, in the SRF program, State selected equivalency loans resulting from a
Capitalization grant awarded in FY-91 are used to comply with the overall negoti-
ated "Fair Share".amount for that grant. The SRF program also is discussed sep-
arately selow.
Programs which primarily place work with institutions of higner
education can achieve their 8% goal by utilizing HBCUs either on a direct
basis, as part of a consortium or as a subcontractor. If an HBCU receives an
award as a recipient or as part of a consortium, a negotiated "Fair Share
objective must be established by the HBCU or the consortium.
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- 5 -
2. Contracts. Procurement actions which originate from the recipient
must include an objective of at least 8% of the Federal share of the value of
concraccs and subcontracts be placed with OBEs.
3. State Grants, Cooperative Agreements and Loans. States receiving
grants, cooperative agreements or loans must include as a minimum an objective
of 8£ of all extramural funds will be placed with DBEs.
i. Local Level Cranes, Cooperative Agreements, and Loans. Local units
of governments receiving grants, cooperative agreements and loans to local -e-
cipients muse include as a minimum objective that 8% of all extramural funds
will be placed with DBEs.
5. Research and Development Programs. All universities, colleges,
hospitals and other non-profit organizations receiving R&O funds or any other
Agency funds will have a minimum objective of 82 for DBEs, including HBCUs, in
the award of prime and subcontracts. (Except for research awards under the
Clean Air Ace).
6. "Fair Sh- •»" Objectives. The Award Official or his designee will
negotiate a "Fair Share objective with the recipient. "Fair Share" objectives
should be negotiated to a level that is achievable; however, the floor of
any objective shall be at least 8%. On programs which have Statewide application,
e.g., SRF or Superfund, the recipient may apply the "Fair Share" objective on a
Statewide basis. This provides the State some flexibility in the "Fair Share"
objective of each grant; in some cases, especially in areas having few qualified
DBEs available to perform the work, the State nay elect to set a lower target
for participation; however, in areas having a substantial number of qualified
DBEs available a greater target for participation would be required in order
for the the State to meet an overall minimum 8Z goal objective. The Agency
strongly encourages maintenance of effort provisions where previous "Fair
Share" accomplishments have exceeded the statutory level.
7. Bidding Requirements. States and/or recipients are required to
include in their bid documents the negotiated "Fair Share" objectives separated
into two categories, i.e., MBEs, (including HBCUs) and UBEs. Additionally,
prime contractors are to Include in their bid documents the1 recipient's "Fair
Share" objectives.
8. To comply with this policy, recipients of assistance awards and
their prime contractors must comply with the following affirmative steps before
a contract Is awarded:
a. placing DBEs on solicitation lists;
b. making sure that DBEs are solicited whenever they are potential
sources;
c. dividing total requirements, when economically feasible, into
small tasks or quantities to permit maximum participation by DBEs;
d. establishing delivery schedules, where the requirements of work
will permit, which would encourage participation by DBEs;
e. using the services of the Small Business Administration and che
Minority Business Development Agency of the U.S. Department of Commerce,
as appropriate; and
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f. requiring the contractor to take the affirmative steps in
subparagraphs a. through e. of this part if subcontracts are awarded.
9. SRF equivalency loans are subject to EPA's "Fair Share" objective,
which is a minimum of 8X, and must comply with the requirements of paragraph B.7.
above. SRF equivalency loans are those identified as such by the State and which
equal the total amount of the Capitalization grant. States should not count re7
financing projects toward meeting their "Fair Share" objective except in unusual
cases. In such cases, prior approval must be obtained from OSDBU and the Head-
quarters program office. If a State accomplishes its "Fair Share" objective by
requiring only certain equivalency projects to undertake the six affirmative steps,
other SRF equivalency projects are not required to undertake them. A State may,
however, require such other SRF equivalency projects to do so. That is the
State's prerogative and not EPA's.
10. All actions taken in carrying out the affirmative steps [see 40 CFR
§33.240, §31.36(e), §35-6580(a) and §35.3145(d)] must be fully documented and
retained in the official files.
c- Agreement Conditions. All EPA grants, cooperative agreements and loans,
made In FY-91 must contain a condition requiring recipients to meet the require-
ments of the Act. Clcacion of the 'Fair Share" objectives for MBEs (Inc*—*ng
HBCUs) and UBEs must be Inserted as veil as the total "Fair Share" objective in
the condition. These conditions are retroactive to October 1, 1990. SRF condi-
tions are cited in c. and d- below:
1. "Fair Share" Conditions.
a. If the Award Official or his designee HAS NEGOTIATED a "Fair Shat
with the recipient, use the following condition or equivalent. The "Fair Share"
must be at least 8Z.
"The recipient must ensure to the fullest extent possible that at
least (insert the negotiated "Fair Share" percentages) of Federal
funds for prime contracts or subcontracts for supplies, construc-
tion, equipment or services are made available to organizations
owned or controlled by socially and economically disadvantaged indi-
viduals, women and historically black colleges and universities.
The recipient agrees to include in its bid documents a (insert the
negotiated "Fair Share" percentages) and require all of its prime
contractors to Include in their bid documents for subcontracts
a (Insert the negotiated "Fair Share" percentages) "Fair Share"
percentage.
To evaluate compliance with the "Fair Share" policy, the recipient
also agrees to comply wl:h the six affirmative steps stated in 40
CFR §33.240, §31.36(e) or §35.680(a), aa appropriate."
b. If the Award Official or his Designee HAS NOT NEGOTIATED a "Fair
Share" with the recipient, use the following condition or equivalent. The "Fair
Share" must be at least 8%;
"The recipient agrees to negotiate a "Fair Share" percentage of not
less than 8Z with EPA before the recipient begins the process co
award any contracts under this agreement.
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The recipient must ensure to the fullest extent possible that at
least the negotiated "Fair Share" percentage of Federal funds for
prime contracts or subcontracts for supplies, construction, equipment
or services are made available to organizations owned or controlled
by socially and economically disadvantaged individuals, women, and
historically black colleges and universities."
The recipient agrees to Include in Its bid documents a (insert the
negotiated "Fair Share" percentages) and require all of Its prime
contractors to include In their bid documents for subcontracts a
(insert the negotiated "Fair Share" percentages) "Fair Share" per-
centage .
To evaluate compliance with the "Fair Share" policy, the recipient
also agrees to comply with the six affirmative steps stated in 40
CFR §33.240, §31.36(e) or §35.6580(a), as appropriate."
c. If the Award Official or his designee HAS NEGOTIATED a "Fair Share"
with the recipient for Capitalization grants use the following condition, or
equivalent. "Fair Share" for these grants must be at least 81;
"The recipient must ensure j the fullest extent possible that at
least (Insert the negotiated "Fair Share" percentages) of equivalency
funds for prime contracts or subcontracts for supplies, construction,
equipment or services are made available by the State and/or SRF
assistance recipient to organizations owned or controlled by socially
and economically disadvantaged individuals, women and historically
black colleges and universities."
The recipient agrees to select certain equivalency projects to achieve,
to the fullest extent possible, the State's "Fair Share" objective and
to require those selected equivalency projects to comply with the six
affirmative steps. The recipient agrees to require (and to assure
that the selected assistance recipients also require) that all prime
contractors include in their bid documents for subcontracts the (insert
the negotiated "Fair Share" percentage) "Fair Share" percentage.
d. If the Award Official or his designee HAS NOT MECOTIATED a "Fair
Share" with the recipient for Capitalization grants use the following condition or
equivalent. The "Fair Share" for these grants must be at least 81;
"The recipient agrees to negotiate a "Fair Share" percentage of not
less than 8Z with EPA before the recipient begins the process to
award any contracts under this agreement.
The recipient must ensure to the fullest extent possible that at least
(insert the negotiated "Fair Share" percentages) of equivalency funds
for prime contracts or subcontracts for supplies, construction, equip-
ment or services are made available by the State and/or SRF assistance
recipient to organizations owned or controlled by socially and economi-
cally disadvantaged individuals, women and historically black collets
and universities.
The recipient agrees to select certain equivalency projects to achieve
to the fullest extent possible, the State's "Fair Share" objective and
to require those selected equivalency projects to comply with the six
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- 8 -
affirmative seeps. The recipient agrees to require (and to assure
that the selected assistance recipients also require) that all
contractors Include in their bid documents for subcontracts the
(insert the negotiated "Fair Share" percentage) "Fair Share" percentage
5. Reporting Conditions. The above stated conditions (a.- d.)
must also include the following statement with the appropriate reporting require-
ments, i.e., a., b., c- or d.:
a. For Project Grant Recipients (except Institutions of Higher
Education and Other Non-Profits) and Loan Recipients:
"The State and/or recipient agrees to submit a SF-33& "MBE/WBE
Utilization Under Federal Grants, Cooperative Agreements, and other
Federal Financial Assistance", to the EPA award official beginning
with the Federal fiscal year quarter the recipient awards its first
contract and continuing until all contracts and subcontracts have
been reported. These reports must be submitted to the award official
within 30 days of the end of the Federal fiscal quarter (January 30,
April 30, July 30 and October 30)."
b. For Continuing Environmental Program Grants;
"The State and/or recipient agrees to submit a SF-334 "MBE/WBE
Utilization Under Federal Grants, Cooperative Agreements, and other
Federal Financial Assistance", to the EPA award official within 30
days of the end of each Federal fiscal year, i.e., by October 30th
of each year."
c. For Grants to Institutions of Higher Education and Non-Profits:
"The State and/or recipient agrees to submit a SF-334 "MBE/WBE
Utilization Under Federal Grants, Cooperative Agreements, and other
Federal Financial Assistance", to the EPA award official within 30
days of the end of each Federal eIseal year, I.e., by October 30th
of each year.
D. Responsibilities.
1* The OSDBU will provide copies of the approved Plan to all Program
and Regional offices associated with financial assistance programs.
2. Avard Official or their designee will negotiate a "Fair Share" objec-
tive for each program. The negotiated "Fair Share" objective will include separate
objectives for MBEs, (including HBCUs), and WBEs. Negotiated objectives should be
developed on the basis that the minimum can be no less than 8Z; however, those
States and recipients who have negotiated a higher percentage in the past should
be strongly encouraged to maintain the higher level. Percentage ranges e.g., 4-9
percent or 6-8 percent etc., are not authorized.
3. The (SDBUO) must provide the Grants Management Offices (CMOs) with
the negotiated "Fair Share" objective for each State or other recipient at the
earliest practicable date, but in no event later than August 31st of each fiscal
year for the following year. In addition, the SDBUO will be responsible for
the following actions:
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a. Ensure chat che Scats or recipient Is fully cognizant of che
requirements of this Plan and the necessity for compliance.
b. Follow-up with recipients if they do not submit the MBE/WBE Report.
4. The GMOs. GMOs will:
a. Include the appropriate condition in this policy (VIII.C.)
b. Assuring the timely receipt of quarterly and/or annual reports
as required by the Conditions. Reports are due within 30 days after the close
of each Federal fiscal quarter or fiscal year, as the the case may be.
5. Reporting. Reporting will be carried out by any entity receiving
EPA funds. Universities, Hospitals and other Non-Profit Institutions, which were
formerly not required to report are now required to report in order for the Agency
to determine if It has met the 8Z goal for each EPA-funded program. No waivers
will be approved for reporting requirements. Quarterly or annual reporting will be
conducted by using the Standard Form 334.
6. The Clean Air Act Research Grants. The 8 percent goal for the utili-
zation of DBEs in F°A-funded procurement under assistance programs applies to
all programs, except for .:search awards funded under the Clean Air Act. The Clean
Air. Act Amendments requires a 10Z goal for research programs awarded by EPA for
DBEs. This requirement will be addressed under separate cover.
2 Attachments
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APPENDIX O
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APPENDIX O
POLICY ON THE TIMELY AWARD OF
ASSISTANCE FUNDS FOR CONTINUING
ENVIRONMENTAL PROGRAMS
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SEP 141S92
MEMORANDUM
SUBJECT: Policy on the Timely Award of Assistance Funds
for Continuing Environmental Programs
Cnginci binned by Harvey Plppea, Jp,
FROM: Harvey G. Pippen Jr., Director
Grants Administration Division
TO: Assistant Regional Administrators
Regions I-X
Attached is a policy entitled "Timely Award of Assistance
Funds for Continuing Environmental Programs." This policy is
issued in conjunction with a memorandum dated June 26, 1992, from
the Office of Comptroller which clarifies general Agency policy on
when funds are available for award.
If you have any questions concerning this matter, please
contact Bruce Feldman at 202 260-5268.
Attachment
cc: Howard Corcoran, OGC, (LE-132G)
Becky Fredericks, HQ, Budget Division (PM-225)
Kathy Payne, HQ/OW (WH-556)
Jerry Kurtzweg, HQ - Office of Air & Radiation (ANR-443)
Dick White, HQ - Pesticides & Toxic Substances (TS-788)
Judy Kertcher, HQ - Hazardous Waste (OS-110)
Doug Barrett, HQ - OC/FMD (PM-226F)
Jane Ephrimedes, HQ - OW (WH-546)
Carol Crow, HQ - OW (WH-546)
Robbie Savage, ASWIPCA
Marian Cody, HQ, (PM-216F)
Corinne Allison, HQ, (PM-216F)
bcc: Official R. Johnson B. Feldman
Reading Grants Management Offices - Regions I-X
Division GPPB Staff GAD Branch Chiefs
PM-216F:RJohnson:RAJ:260-5296:FC 801:Disk - RJ:MEM02.FNL
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TIMELY AWARD OF ASSISTANCE FUNDS
FOR CONTINUING ENVIRONMENTAL PROGRAMS
PART I: PURPOSE
PART II: POLICY
PART III: BACKGROUND
PART IV: ROLES AND RESPONSIBILITIES
PART V: Appendices
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I. PURPOSE
The purpose of this policy is to clarify existing policy
concerning the timeliness of awarding assistance funds for
Continuing Environmental Programs. Continuing environmental
programs are generally those programs cited in 40 CFR Part 35,
Subpart A. See Appendix 3 for a listing, as of September 1992, of
Continuing Environmental Program grants.
II. POLICY
It is EPA's policy to award assistance funds for Continuing
Environmental Programs as quickly as possible after funds become
available, in accordance with 40 CFR 35.141, "EPA Action on
Application". The procedures in this policy apply to awards made
under a normal or a late Appropriation Act as well as under a
Continuing Resolution(s).
III. BACKGROUND
During the past year, some States have rai^d concerns about
the timing of assistance awards which fund continuing environmental
programs. Frequently EPA does not award its environmental program
grants until after the start of the grant budget year. There are
a number of causes for the delays. Two examples often cited are
confusion about when funds become available for obligation and
difficulties in work plan approvals. Due to the confusion on the
availability of funds and the degree of flexibility the Regions'
have to plan and to award grants within their quarterly Operating
Plan, the Regions frequently delay awarding grants. Additionally,
work plan negotiations between State and EPA program officials are
often not completed in a timely manner due to disagreements over
State and EPA initiatives and requirements. Such disagreements can
hold up a grant award until all work plan issues are resolved and
the work plan is approved.
Most States, by law, cannot operate their programs in a
deficit mode. With a tightening economy, States face laying off
workers or changing to shorter work weeks if Federal funding is
delayed for Continuing Environmental Programs. Additionally, due
to the Cash Management Improvement Act, the Agency could be liable
for interest penalties when grants are awarded late.
To help clarify EPA policies and the concepts governing the
use and availability of funds, Budget Director, Richard Brozen,
issued a policy memorandum dated June 26, 1992, to the ARAs and
Senior Budget Officers. See Appendix 1.
Funding Availability and Flexibility
o Under an Annual Appropriation
The Office of Management and Budget has historically
apportioned funds for the AC&C account in a quarterly split of 80-
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10-5-5 percent of total (i.e. 80 percent of the funds are available
in the first quarter; 10 percent are available for the second
quarter; and five percent each are available for the remaining two
quarters of the fiscal year). The apportionment reflects the
quarterly split for the entire appropriation. During Phase III of
the President's Budget, this quarterly split is equally applied to
every program element in the appropriation. Regional Offices may
adjust the amount awarded under each program element provided the
total awards do not exceed their quarterly split.
By adjusting the Regional resources during Phase III, Regional
comptroller Offices, working with the Regional Grant Management and
Program Offices can, to the maximum extent possible, fully fund
their continuing environmental program grants'in the first quarter
while funding project grants, contracts, or lAGs later In the year.
Thus, the decision rests with the Region to determine which awards
to make using the Region's first quarter allowance of AC&C funds.
(The assumption is that sufficient resources are available to
permit the Region to fund 100 percent of fundable continuing
environmental grants.)
o Under a Continuing Resolution
Under a Continuing Resolution (CR), all affected agencies
receive limited funds based on constraints written by Congress and
OMB applicable for the time period covered by the CR.
During the CR, funds are available to the regions based on a
percentage of their total appropriation and they are not restricted
by program element or object class totals. Regional offices may
adjust the amounts funded under each program element provided the
Region does not exceed its total available allowance. Thus,
depending on its priorities and the amount of funds available, the
Region may fully fund its continuing environmental program grants
even under a CR.
PART ZV. 6MO ROLES AND RESPONSIBILITIES
This Section outlines the basic roles and responsibilities of
the Grants Management Office (GMO) in awarding assistance funds for
continuing environmental programs.
FUNDING AVAILABILITY
l. GMOs must coordinate with the Regional Comptroller to
ensure inclusion on distribution lists of information
received from the Office of Comptroller relating to
assistance funds. This information includes the Regional
Operating Plan (and any revisions) and all other
pertinent grant correspondence and policy issued by the
Office of Comptroller.
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2. GMOs must work jointly with program offices and the
Regional Comptroller to adjust individual Program
Elements within the quarterly allowance to allow to the
maximum extent practicable 100 percent funding of
acceptable grant applications for continuing
environmental programs.
3. GMOs and the Program Offices should jointly ensure grants
awards are made as soon as possible after the funds are
available to the Regional offices.
Conditional Approval. If an application is conditionally
acceptable, and only minor revisions to the workplan are
required, the award should be made as soon as possible
after Federal funds become available, either partially
or at 100 percent. The award must include the
condition(s) which the applicant must meet -to secure
final approval and the date by which those conditions
must be met.
Disapproval. If the application cannot be either
approved or conditionally approved, and negotiations to
revise the work plan fail, the GMO working with the
program office should provide a formal written
notification to the recipient which states the reasons
for disapproval of the Application, in accordance with
40 CFR 35.141(C).
KEY MILESTONES IN THE AWARDS PROCESS
1. GMOS should coordinate with the program offices in the
forwarding of application kits and program guidance to
continuing program grants applicants. GMOs should send
application kits to continuing program grants applicants
three and one half (3 1/2) months before the end of the
current grant budget period.
2. GMOs should jointly work with the program offices to
provide a formal written notification to applicants
regarding the status of award of their continuing
environmental applications within 45 days after receipt
of the application. This notification must include
whether the application is acceptable, conditionally
acceptable, or unacceptable and inform the applicant of
any outstanding administrative issues which would delay
award. (See Appendix 2 for a sample status report.)
3. GMOs should make their final determination on whether an
application is approved, conditionally approved, or
disapproved within 60 days of receipt of the application.
4. GMOs and the program offices should jointly ensure that
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Appendix 1
UNITED STATES FNVIRONMENTAL PROTECTION AGENCY
WASHINOTON, O.C. 20460
JUN261992
AOMNMTRATKM
MEMORANDUM
SUBJECT: A'
FROM:
(FM-225)
TO: Assistant Regional Administrators
Senior Budget Officers
This memo is intended to clarify some of the general poJfcfaa and concepts that
govern funds availability and flexibility in the Agency When a fiscal year begins. The
"financial environment" has been rapidly changing over, the-last few yean bom inside
EPA as well as government-wide. These changes have raised qpeetkos «to the
fundamental core f*Npftnff{MW*q of the Agency's management of oar flnanrJ«i rwmrvfft
These issues are extremely complex and highly variable, «**pi^g an '""tf^r*1*^ of
the inter-relationship of four core funding documents. TWa mnny pyMfff SB overview
of the fundamental core responaibilities. The Budget Division ia comntr/ in the. proceat
of updating the Planning and Budget Manual and the' Fonda Control Manual which wffl
incorporate the more detailed guidance. As part of this proceat, I would weioooe
comments and suggestions for additional clarifications, as needed.
Background
Several recent events have focused our attention on how the division ia
communicating resource decisions and providing information ""nr^frt the release of
funds to the Agency. First, many new and complex laws have been enacted that affect
the Agency's funds. These include the Budget Enforcement Act of 1990, The Chief
Financial Officer Act of 1990, Federal Credit Reform Act of 1990 and the Caeh
Management Improvement Act of 1990. Second, we have i'mf4rMli1l*f the Jatnjgajad.
Financial Management System (IFMS) within the last few yean which hat nau *
significant impact on the flow of information concerning financial lesources and added
new responsibilities for the Responsible Planning and Implementation Officers (EPIOa).
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Third, a quality action team was convened by the Office of Wutewtter Enforcement
and Compliance for the purpose of addressing State concerns on the grants process.
And firilly, we recognize that there has been significant turnover in the Agency's
resource community, resulting in many new employees new to the budget world.
Tt has come to our attention that there are many unanswered questions 01 fund
availability and flexibility. In particular, it is clear that there has been some confusion
about when funds become available for obligation and how much flexibility the Agency
has in making resource management decisions. I would like to take advantage of these
circumstances and take a flnt step in providing some clarification on the general
concepts, controls, and procedure! which make funds avauabb for obligation.
Availability of Funds
At any tune, the funds available to the Agency is governed by four talk
documents: (1) the Congressional Budget Justification; (2) the Appropriation law under
which the Agency is funded; (3) the OMB Apportionment; and (4) the Agency's
approved financial Operating Plan. la general, etch document governs a different aspect
of the Agency's cash flow and flexibility.
(1) Coocnsrtnial Budget Jnatiflnrtten provide! Coognas ad me Ajimin«»n*H>ii wfch
the Agency'i bask blueprint on where we are spending our money, what Mote
we expect to achieve, and our accomplishments tor the previous two fiscal JOB*.
Since OMB and Congrats consider tail document to be the bead of our budget.
deviation from it usually require! action, by cAber Congnas and/or OMB.
(2) Appropriations Law provides the Agency with the basic
by Congress. It include* the total level of funds avatiabb within each financial
account and specific guidance to the Agency through apedfle aypniuilaHnm
language, report language, and other legislate Uatory. Tbe tew enacts the
underlying structure of our appropriations accounts and CosgnjaiOMl Budget
Justification with modifications spelled out in the legislative history. Tbe Law
provides both restrictions (account transfers; Travel ceilings; PC4B floors) and
flexibility (repragramming authority; appropriation charging).
(3) OMB Apportionments control the rate at which obligations can be made by the
Agency and in some instance the exact purpose for the ohtigafkws. UanOy,
OMB apportions the Agency's funds by quarter. There are, howevar, otter cam
where OMB limia the use of funds either through a sat aatde On a "category B*)
or through footnotes to the apportionment. One react use of these reerrktkms
has been OMB's establishment of a clean-up category in the Supeaftad
apportionment.
-------
3
(4) Approved Financial Operating Plan implements the Congressional Budget
Justification, Appropriations Law, and OMB Apportionment. The
Operating Plan essentially governs the purposes for which the Agency
eApends funds. The Operating Plan is the document against which the
Agency is monitored for compliance with Congressional and OMB
directive*.
In an attempt to maintain communication with the resource community and to
implement these four governing documents, the Budget Division has established several
institutional methods of communication that provide guidance as to the availability of
resources to the Agency's managers. The are: (1) Advice of Allowance for each
appropriation to each Responsible Planning and Implementation Officer (RPIO); (2) an
online flwv**! Operating Plan contained in the Tntyafffd Financial Management
System (IFMS); and (3) the Appropriations Analysis, Bills and Reports digest*
These sources of information establish spending limits at • detailed level to
ensure compliance with appropriated amounts, directives, and guidance {fr***^ add-
ons and redactions) u well as OMB apportionment restrictions. The use and
applicability of each guidance source is dependent upon the status of the Agency's
appropriations and Operating Plan.
Appropriations
At the beginning of the fiscal year, the Appropriations -Law govenint the Agency
will take one of two forms: either an annual Appropriations Bffl covering the full year
or & Continuing Resolution that coven a shorter period of time. (If the Apncy has no
Appropriations Law, the Agency must "shut-down" operations which la addressed by BPA
Order on Actions in the Event of an Appropriations and/or Debt Getting Htami). The
status of the Agency's appropriations significantly affects the level of funds available to
the Agency and the amount of flexibility with which the Agency can operate. The
following lays out general principles for the availability of foods under each
appropriation scenario and attempts to illustrate the interrelationship between the
controlling documents listed above.
One special note, however, is that the specific rules and conditions under which
the Agency operate* can vary significantly from year to year. Congress and OMB
generally provide us with a complex set of rules that can be modified yearly, quarterly,
or monthly. The resource community should stay in close contact with the Budget
Division to 4rtftrm
-------
of Funds Under an Annual Appropriation
Th; budget statutes that govern the federal budget process provide that the
Agency begins its fiscal year on October 1 with an enacted Appropriations Bill. Once
the Appropriations Bill is signed by the President, EPA has 30 days to provide an
enacted Operating Plan to the Office of Management and Budget (OMB) and the
Congress for their approval. This Operating Plan uses the Congressional Budget
Justification as Its baseline and modifies it according to Congressional directives
contained in the Appropriations Law. In addition, OMB has 30 days following
enactment to provide the Agency with the apportionment of its appropriations.
After enactment of the ««P™I Appropriations bill, the Comptroller transmits the
Appropriations Analysis, Bill and Report digest to each RPIO. This digest is an analysis
of the Appropriations bill, its legislative history, and ht requirements, This transmittal
represents a formal delegation from the Comptroller to the BPIOi of the program
responsibilities contained 10 our Appropriations Law v4 its legislative Ustozy.
During the interim period prior to approval of the enacted Operating Plan, the
Operating Plan based on the President's request (Phase AT) is loaded in the QMS. A
guidance «"?p"> based on ****W temporary f^tpy^ ^nrWH is OMB apportionments is
issued to the RPIOs on how to proceed until the Agency hao an approved Qpsatfnf
Plan. We try to provide the "'•«*'*"« amount of funding to alto* DOOM! Afency
operations. However, RPIOs are advised that the- Opening Plan m IFMS has not been
adjusted to reflect Congressional actions or the final ******** distribution of
resources. Therefore, Agency managers must JM prudent and careful hi msnaitnj their
1st quartet resources that have been made available in the event that the mudrrVslkrs
reduce the amounts available.
Once the Operating Plan has been approved, the RPIO is notified through the
normal Advice of Allowance letter. This letter sets .out the funding avtflable to the
allowance holders for that quarter as well as provides guidance on the llmhsttmu and
flexibilities on the use of funds (ceilings, floors, reprogramming requirements).
Availablit
In recent yean, our annual Appropriation* Bin has act been enacted by the start
of the fiscal year, In this situation, the Agency begins the fiscal yen under a Coottening
Resolution (CR). During this time, the RPIOs are provided- general guidance
memoranda from the Comptroller Budget Division on the roles governing Agency
operations until we have a full year Appropriations- Law and the nsnttnf enacted
Operating Plan. These raks include, but are not limited to, the use of funds Ibr me
purposes for which they wen requested in the Congressional Budget JmUnminn, torwefl
as the restraints included in the Continuing Resolution, as written by Congress, sad
OMB's Apportionment of the Continuing Resolution funds.
-------
5
Generally, CRs hold the Agency to a more restrictive level than our proposed
President's Budget. At that more restrictive level, the Agency is provided sufficient
funds for the time period covered by the CR. The CR, however, rarely provide! enough
funds to cover 'normal" operations. While operating under a CR, each RFIO is provided
a portion of their total appropriation to obligate. Because of the allotment process that
we have ("greed to with OMB, the Agency maintains significant flexibility. Therefore,
monitoring and lockout of fuads during this time are done at the highest possible teve)
for each Allowance Holder. Maximum, flexibility by program element and object class is
permitted.
Funding Flexibility
During the execution phase of the budget, the Agency must take cue to adhere to
the limits and constraints of its four governing documents. Within the limits, however,
the Agency maintains considerable flexibility in the use of funds. Some of Aeftadbflfcy
U laid oat in the Agency's Appropriation Law. For example, the Agency is allowed to
rcprogram funds up to a certain level ($500,000 for FY 1992) between programs in (he
operating plan.
Another example of flexibility is in the quarterly apportionments by OMB.
Doting the development of the Operating Plan, the snlfrlpalHl qesBtndjr sptni an
equally applied to every program element in the appropriation. These mfrHiieil
quarterly splits to resources may be adjusted, however, fo obtain desired ***tiflltT *•&•
as long as the quarterly split at the RFIO level for that ayjffopfisrtnri
Flexibility is, therefore, within the limits established in the Jmffllfsrinn.
Appropriations Law, and the OMB Apportionment. The situations and variables are far
to numerous and complex to set out specific guidance in this memo. The UttrhmmT to
this memo gives one specific case example.of flexibility within our Hmtaltans Within
these limitations, the Agency doc* maintain a signhVant amount of flcodbtttty hi ftndbf.
Closing
I hope this information clarifies some of the confusion on these issues. In addition, I
would like your input, comments and questions regarding the type of specific goidenoe
you believe would be helpful to you in managing the Agency's resources. Please dbect
your comments and inquiries to Delia Scott, Chief, Formulation end Control Bntoch, at
260-1176 or Becky Fredericks, Chief, Management and Pottcy Staff, at 260-2470.
Attachment
-------
ATTACHMENT
CASE EXAMPLE
The Agency begins the year on a Continuing Resolution (CR) for 3G days which
provides us with an automatic apportionment for 30/36SUis or approximately 8% of etch
of our appropriations based on the levels of the year just ended.
The status of our Appropriation's Bill is still delayed in Congress or the White
House and we cannot yet operate at the levels expected for the current year or use the
Phase HI Operating Plan (OPLAN) which is awaiting action to incorporate
Congressional add-ons and reductions following eni
How do Agency managers operate under this scenario?
In terms of the four funding documents needed, we have two at this point..a
limited Appropriations Bill (CR) and the (automatic CR) apportionment Ite fun-year
Appropriations Bill based on the Congressional Budget Justification, and the Opeating
Plan, are still pending. Funds are now available, however, as is guidance and flexibility.
The Comptroller/Budget Division issues a sedes of status tad guidance
memoranda (or EMAIL) providing aa much specific uiroraatiufl tad genaal finding
guidance as is available to EPA. Among other features, this guidance linu stresses:
1. Caution pnd prudent ftt*|t*ffffBfnt
2. Availability of funds (CR percentage) at the Appropriatioo/Allowaiice Bolder
total level for each RPIO/Region. Allowance Holders an not bald to lower
program element/object class level during a CR,
So, even under the most restrictive (CR) circumstances, matmMffl rsgbflfr is.
being provided within the total pool of resources available for the
fund the highest priorities based on their own detcnmnatioa.
or an AC&C grant to a particular State is the highest priority, then the (HietMiiflity tot
obligation is in place.
END OF THB c^ - As soon as the CR is ended (usually during die first onaitsr) by the
enactment of EPA's Appropriations Bill and signature by the President, the ftdl year
Phase m Operating plan is loaded into IFMS and guidance to obligate cantfoustjr white
Congressional add-ons and reductions are impkorated is issued.
-------
Now that a full year's appropriation is enacted, (he budget planning process, if
followed correctly should provide the Program Offices with availability of funds
opportunities to award any priority items (e.g. grants) in the Tint quarter of the fiscal
year The budget process includes steps to ensure that we have this flexibility.
Appropriations such as Construction Grants, Lust, AC&C and R&D are
disj"t>poriionately "from loaded' in the 1st quarter apportionment to allow Program
uinces to fund Priorities (such as grants .n the 1st quarter should they choose to do
curing the phases of Operating Plan development.
CONCLUSION
In 'erras of proper budget planning, the following steps by the Program Offices
will allow for priority items to be funded in the first quarter
A. BafioMi diarihutiona of the Pies. Budget resources have been made by the
National Program Manager and incorporated into the OPLAN.
B. Priority items (such as grants) have all beta budgeted in the 1st quarter
OPLAN by the RPIO during Phase m.
C. RPIOs begin the obligating paperwork for the priority terns ai soon as the
year begins so it is ready to go as soon as sufficient rands in.
D» CO^BBUQBCfltS JffS CtttftPPO - OlOJDOClY ftfl tQQfl AS IDO ^^DDVODKUHDOBS
signed and IFMS is open.
B. Obligating documms are promptly forward>3 to Oaatt Offoea, Cootttcti
Offices, etc. for obligation.
-------
APPENDIX P
-------
APPENDIX P
STATE GRANT GUIDANCE, "INTEGRATION
OF POLLUTION PREVENTION"
-------
11/1S/92 11:51 ®202 252 0516
OCLA/OLA DIV
---. EPA'G
UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
WASHINGTON. D.C. 20460
NOV 1 2 1992
THEADMWSTW
LTOH
HBMORMTDUM
SUBJECT:
state Grants Guidance: integration of Pollution
Prevention
F. Henry Habicht iiY/S
Deputy Administrate
Assistant Administrators
Regional Administrators
JTKOM:
TO:
Attached is the new Agency-wide Guidance
pollution prevention into EPA'c media grant programs, beginning
in FY'94. This Guidance builds on the Agency's pollution^
prevention commitment, already reflected in many exciting
activities throughout our programs and in the States.
I want to thank all those who labored so effectively to
develop this Guidance. The document reflects the many
constructive comments provided by Agency headquarters, Regional
Offices, and State governments. In response to those comments
the final product is shorter, tighter, and IRRS prescriptive in
tone.
With this Guidance in hand, the Agency nap now mov** rjuidely
to develop specific Guidance documents for our individual
grant programs in concert with our State partners.
Attachment x'**-* •
Printed on Raeydod Pae^f
-------
11/18/92 11:54 Q202 252 0516 . OCLA/OLA DIV -— EPA/GAD $003
UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
WASHINGTON, D.C. 20450
NOV I 2 1992
KEHORANDDM
OFFICE OF
THE ADMINISTRATOR
SUBJECT: State Grants Guidance: Integration of Pollution
Prevention
PROM: F. Henry Habicht
Deputy Administrator
TO: Assistant Administrators
Regional
This memorandum announces the Agency-wide pollution
prevention Guidance, beginning with the FY'94 State grants cycle.
It has four goals:
• Promoting pollution prevention in State programs
supported through Federal grants by establishing
National Principles to guide workplans negotiated
between Regional Offices and States;
• Ensuring that grant requirements as interpreted by
EPA/ State workplans are flexible enough to support
innovative State pollution prevention activities;
• Establishing a simple accounting process to share
information on successful State projects, and identify
statutory or other barriers to funding State proposals;
and
• Building sustained State capacity in pollution ,
prevention to the extent consistent with statutory
grant requirements.
All of these objectives are subject to any statutory and
regulatory limitations that apply in specific circumstances.
The Guidance should help integrate pollution prevention into
the Agency *s activities as required by the Pollution Prevention
Act of 1990. By emphasizing flexibility, the Guidance
complements other Agency efforts to build a productive
environmental management system in partnership with the States,
and improve coordination with existing State pollution prevention
programs.
Printed on Recycled Paper
-------
11 55 S202 252 0518 OCLA-OLA DI\ — EPA-'GAD .0004
In general, this Guidance applies to all of the Agency's
media-specific State grant programs, but particularly to the
following: Clean ALr Act §105—Air pollution Planning and
Control; Resource Conservation and Recovery Act §3011—Hazardous
Waste; Federal Insecticide. Fungicide, and Rodenticide Act
§23 (a) (1)—Pesticides; Toxic Substances Control Act §28—
Enforcement and Enforcement Activities under §313 of the
Emergency Planning and Community Right-to-Know Act; and Clean
Water Act §106—Surface Water, §104(b)(3)--Wetlands and Water
Quality Management, and §3i9(h)—Non-point Source Management.
Building on the Agency's many successful pollution
prevention efforts, beginning in FY'94 EPA's grant programs—
working with States—should explicitly promote pollution
prevention in State workplans (also called agreements) . This
memorandum will be incorporated into the annual Agency Operating
Guidance as well as program-specific Guidance developed this
winter with the advice of the State/EPA Operations Committee.
Program Guidance, intended to tailor the Agency-wide commitment
to each grant program, will be applied by Regional Offices and
States in the development of grant-assisted work.
The National Principles stated below should help guide
development of EPA/State workplans. These should be reflected in
program-specific Guidance, weighed in vorkplan discussions, and
used to qualitatively assess program progress in integrating
pollution prevention. In applying these Principles/ Regional
Offices should use or expand upon the menu of flexibility options
below to respond to state needs to the extent possible. Annual
accomplishment reports, discussed below, will help assess EPA'S
progress in supporting pollution prevention-oriented state
workplans and initiatives.
National Principles
Guidance for each grant program covered by this document
should make clear that pollution prevention—as defined in the
Agency-wide memorandum of May 28, 1992 (attached)—is EPA's
preferred approach to environmental management where technically
and economically feasible. Consistent with the Pollution
Prevention Act, the Guidance should further the integration of
pollution prevention into State activities—e.g. inspections and
permits—that are supported by EPA grants. While pollution
prevention is not mandated, the Principles are intended to ensure
that it is considered fairly in EPA/State workplans.
Specific proposals from States that are consistent with
these Principles should be considered good candidates for funding
through the grant programs. In addition, Regional Offices should
take the initiative to suggest pollution prevention approaches,
drawing upon program-specific Guidance and implementation
workshops. Regional Offices and states are expected to use their
-------
11'18'92 11-55 ®202 252 0516 OCLA'OLA DIV --.-. EPA'GAD
discretion in applying these Principles; they are not obligatory
elements of every negotiated workplan, but rather factors for
serious consideration in the negotiation process.
The Principles are:
1) The workplan applies the EPA definition of pollution
prevention (see memorandum of May 28, 1992) consistent with the
Pollution Prevention Act of 1990 and the 1991 EPA Pollution
Prevention Strategy.
2) The workplan reflects an explicit preference for pollution
prevention and identifies pollution prevention activities,
products, or approaches.
3) The workplan -.ncorporates pollution prevention as a priority
in environmental management decisions made by the grantee as part
of the grant-assisted activities.
4) The workplan encourages opportunities to modify existing or
to develop new equipment, technology, processes, procedures,
products, or educational or training materials to promote
pollution prevention.
5) The workplan encourages institutional coordination—including
coordination with existing State pollution prevention programs—
and multi-media opportunities for pollution prevention.
6) The workplan complements or builds upon existing EPA
pollution prevention projects (e.g. the work of multi-media
industry clusters such as the Source Reduction Review Project,
and the use of pollution prevention in enforcement settlements) .
7) The workplan identifies and applies measures and ways of
documenting pollution prevention progress as part of the grant-
assisted activities (e.g. provides opportunities for measurable
pollution prevention).
8) The workplan includes activities or approaches that muy serve
nationally as innovative models for other state or local
programs. Workplans also should encourage innovative approaches
already developed by other state or local programs, and improve
coordination to build on existing successes.
9) The workplan structures grant output information so that EPA
can make pollution prevention data and experience available to
other States and the Pollution Prevention Information
Clearinghouse.
Clearly, both partners must comply with any applicable statutory
or regulatory requirements and tahe into account other factors
that may be important. Regional Offices and States may identify
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ll'18/92 11 56 ©202 252 0516 OCLA'OLA DIN --- EPA'GAD 3'JOt5
4
additional Principles to guide workplan requirements.
Flexibility
Many Regional Offices already have made adjustments to
accommodate flexibility needs. The purpose of this Guidance is
to encourage such flexibility. Whenever possible, vorkplans
should accommodate State flexibility needs associated with
incorporating pollution prevention approaches into their grant-
assisted activities. ' That means working within the parameters of
statutory and regulatory requirements to arrive at an agreement
that is practical and meets the parties' needs. Options for
flexibility include (but are not limited to):
a) Adjustments in numbers or types of required outputs
including, for Cample, (l) tradeoffs or disinvestment from
traditional requirements (non-statutory and non-regulatory)
and (2) multiple credit for a single "multi-media"
inspection that emphasizes pollution prevention.
—An example of (1) is RCRA's RIP-Flex Guidance, which
allows disinvestment from national priority activities and
re-investment in Regional or State priorities: up to 25% of
enforcement resources in FY'92 and '93.
—An example of (2) is being tested in Region One with
Massachusetts1 Blackstone project. The Key issue is how to
"bean-count" a single multi-media inspection claiming to
satisfy enforcement requirements under multiple statutes and
promote pollution prevention technical assistance.
b) Adjustments in timing of non-statutory and non-
regulatory EPA deadlines.
c) Identification of a percentage of funds for pollution
prevention within each media program, coordinated by a
pollution prevention office.
—For example. Region 10 has agreed to Alaska's request to
allow the State to identify 3% (5% over the next two years)
of grant program monies—RCRA, air, and water—for pollution
prevention, to be coordinated by the pollution prevention
office. The monies will be reflected in specific activities
reasonably related to each program's contribution and
statutory objectives. The annual EPA/State Agreement will
explicitly identify pollution prevention activities and
specific disinvestments in each program.
d) Adjustments in traditional or administrative procedures
or schedules to ease EPA/State interaction.
Annual Accomplis^*insii't Report
To allow EPA to evaluate progress in integrating pollution
prevention into State grant programs, each Regional Office should
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11/18/92 11:58 ®202 252 0518 OCLA'OLA DIV — EPA/GAD 0007
provide an annual report summarizing pollution prevention
accomplishments (e.g. activities, products, approaches/ etc.)/ as
reflected in grants-assisted work. The report may take any form
and may draw upon reports developed to satisfy other
requirements.
While program-specific Guidance may elaborate further, each
report should identify: a) success stories, including innovative
State projects funded under this Guidance; and b) any barriers
(statutory or otherwise) that led a program to reject State
proposals or to decide against including pollution prevention
approaches. In addition, recommendations on regulatory,
administrative, or other changes to improve flexibility would be
helpful. Your contribution of this information is key to making
pollution prevention a reality in EPA's on-going bread and butter
work.
Conclusion
Incorporating pollution prevention into EPA's policies and
programs is a collaborative effort requiring EPA to work in
concert with our State partners. The National Principles and
Annual Reports described above will help us to measure our
progress and build on our successes.
Attachment
-------
APPENDIX Q
-------
APPENDIX Q
SF 424, "APPLICATION FORM"
-------
OMB Approval No 0348-004]
APPLICATION FOR z. DATE SUBMITTED Appucam menuier
FEDERAL ASSISTANCE
1. TYPE OF SUBMISSION:
Appecafiori
LJ Construcinn
Q Non-Consiruaion
3. DATE RECEIVED BY STATE Slate Appicaton oentider
Pre-anptairen
LJ Cvrairuaion 4 DATE RECEIVED BY FEDERAL AGENCY Faaeraiic«rtii«r
n Non Consinicton
S APPLICANT INFORMATION
Legal Na>ne
Address (goo ay county, slate, and n> code;
6, EMPLOYER IDENTIFICATION NUMBER (EIN):
a TYPE Of APPLICATION
If RevBon. enter appropriate letter
A. Increase Award
D Decrease Duration
—
] New Q Continuation Q Revision
(S)n bo»i.es) Q '~~l
B Decrease Award C Increase Duration
D Other (tpecly)
10. CATALOG OF FEDERAL DOMESTIC _
ASSISTANCE NUMBER:
TITLE
12. AREAS AFFECTED BY PROJECT (aUfm. cmnMe. (MM. «ic;
11. PROPOSED PROJECT:
Organizational Un>
Name and telephone nurroer ol me person 10 be contacted on matters involving
the appicaton fgive area code;
7. TVPE OF APPLICANT (inter appropriate totter in boi) . I I
A. Stale H Independent School Dm
B County 1 Stale Controlled Instiiuion of Higner Learning
C Munceal J Private University
D Townshp K Indian Trbe
E Interstate L IndrvOual
F Intermuncoal M Prol« Organization
G Soeoal District N Oiher (Specify)
9 NAME OF FEDERAL AGENCY
1 1 DESCRIPTIVE TITLE OF APPLICANTS PROJECT
14. CONGRESSIONAL DISTRICTS OF:
Start Date EndngDate a. Applcant b Proied
IS. ESTIMATED FUNDING:
a. Federal $
b Applicant $
c Stale t
d Local t
» Other I
I Program Income t
g TOTAL »
IB. IS APPLICANT SUBJECT TO REVIEW BY STATE EXECUTIVE ORDER 12372 PROCESS?
a. YES THIS PREAPPLICATION/APPLtCATON WAS MADE AVAILABLE TO THE
STATE EXECUTIVE ORDER 12372 PROCESS FOR REVIEW ON
00
DA
00 |-
b NO |_
rE
2 PROGRAM IS NOT COVERED BY EO 12372
00
1 1 OR PROGRAM HAS NOT BEEN SELECTED BY STATE FOR REVIEW
00
00 17. IS APPLICANT DELINQUENT ON ANY FEDERAL DEBT?
00 II Yes If "Yes." attach an eiplanation 1 1
No
18. TO THE BEST OF MY KNOWLEDGE AND BELIEF, ALL DATA IN THIS APPUCATION/PREAPPUCATION ARE TRUE AND CORRECT THE DOCUMENT HAS BEtN DULY
a. Typed Name of Authorized Representative b Title
d Signature ol Authorized Representative
c Telephone nurroer
e Date Signed
Previous Ednons Not UsaMe
Standard Form 424 (REV 4 88)
Prescribed Dy OMB Circular A 102
-------
BUDGET INFORMATION - Non-Construction Programs °MB Appr°vs" N° ^^
SECTION A - BUDGET SUMMARY
Grant Program
Function
or Activity
(a)
1.
2.
3.
4.
5. TOTALS
Catalog of Federal
Domestic Assistance
Number
(b)
Estimated Unobligated Funds
Federal
(c\
$
$
Non-Federal
(d)
$
$
Federal
(e)
$
$
New or Revised Budget
Non-Federal
r Hi
$
Total
(a)
$
$
SECTION B- BUDGET CATEGORIES
6. Object Class Categories
a. Personnel
b. Fringe Benefits
e. Travel
d. Equipment
e. Supplies
f- Contractual
g. Construction
h. Other
I. Total Direct Charges (sum of 6a - 6h)
I- Indirect Charges
k. TOTALS (sum of 61 and 6J)
mmmm^m
7. Program Income
GRANT PROGRAM. FUNCTION OR ACTIVITY
$
$
$
$
$
$
$
$
$
$
$
$
MH
AUTHORIZED FOR LOCAL REPRODUCTION
Standard t-orm 424 A (4-08)
Proscrfeod by OMBCvcutar A 102
-------
SECTION C - NON-FEDERAL RESOURCES
(a) Grant Program
8.
9.
10.
11.
12. TOTALS (sum of lines 8-11)
13. Federal
14. Non-Federal
15. TOTAL (sum of lines 13 and 14)
(b) Applicant
$
$
(c) State
$
$
(d) Other Sources
$
$
(e) TOTALS
$
$
SECTION D - FORECASTED CASH NEEDS
Total for 1st Year
$
$
1st Quarter
$
$
2nd Quarter
$
$
3rd Quarter
$
$
4th Quarter
$
$
SECTION E • BUDGET ESTIMATES OF FEDERAL FUNDS NEEDED FOR BALANCE OF THE PROJECT
(a) Grant Program
16.
17.
18.
19.
20. TOTALS (sum of lines 16-19)
FUTURE FUNDING PERIODS (Years)
(b) First
$
$
(c) Second
$
$
(d) Third
$
$
(e) Fourth
S
$
SECTION F - OTHER BUDGET INFORMATION
(Attach additional Sheets H Necessary)
21. Direct Charges:
22. Indirect Charges:
23. Remarks
SF 424 A (4-88) Pag* 2
Prescribed by OMB Ocular A-102
-------
APPENDIX R
-------
APPENDIX R
LIST OF HEADQUARTERS AND REGIONAL
MBE/WBE COORDINATORS
-------
RlfilfiN -I
Josiah N. Pripp, SDBUO
Jame» Younger, SDBun
U.S. Environmental Protection Ayency
Region I
John P. Kennedy Federal Building
One congress Street
Boa con, MA 0220}
II
Dana P. Williams, SDBUO
U.S. Environmental protection Agency
Region II
Jacnh K. Javitta Federal Building
25 Federal Plaza
New York, NY 10278
Mary 7telinski, SOBUO
U.S. Environmental Protection Agency
Region III
841 Chestnut Building
Philadelphia, PA 19107
MGIOM IV
Jamas P. Favoro, SDBTin
U.S. Environmental protection Agency
Region IV
345 Court land Street, NE
Atlanta. GA 30365
Robert Richardson, SDBUO
U.S. Environmenr.al Protection Agenry
Region V
77 west Jackson Boulevard
Chicago, IL 60bO«-3507
(£17) 565-3289
PAX (617) b65-3346
(617) 565-3427
FAX (C17)
PAX
PAX
PAX
(212) 7A4-B218
(212) 264-8100
(215) 597-6795
(215) 597-6170
(404) 347-22UO
(404) 347-1043
(31?) J53-56-V
PAX (312) 353-9096
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MfllQB VI
Reta J. Brown, SDBUn (214) 6SS-74UV
Ui4) 655-2146
U.S. Environmental Pror action Agency
Region VI
First interulate Bank Tower at Fountain Place
12th Floor, Suite 1200
1445 Ross Avenue
Dallas, TX 75202-2733
BBfllOM VII
Kmajo May berry, SDBUO (913) 4S1.7U8
Carol Rompage,
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CINCINNATI PHD
Norm Whitft, SUBUO
U.S. Environmental Protection Agency
Cinr.innacl Cunti-acts Management Division
Cincinnati, OH 45268
pflDBP (A-149C)
rc«orge K. Mori
Rebecca D. Ncer
(os 200)
Jan Baker
fltata Revolving Fund (WH-547)
XI i. Farber
(PM-216F)
T.npe saldana, SDBUO
Richard Johneon
(LE 132G)
Mark Gordon
FAX
019;
(9191
366-2024
366-2004
(703) 305-6301
(7m) JUb-5023
WVX (703) 305-C4C2
(202) 260-2180
PAX (202) 260-4386
(202) 260-3973
FAX (202) 260-0116
(202) 260-b245
(202) 260-5296
FAX (202) 260-1828
FAX
(202) 260-8886.
(202) 260-8392
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APPENDIX S
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APPENDIX S
OFFICIAL PROJECT AND GMO FILES
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OFFICIAL EPA PROJECT FILE
Project File: The official file developed and maintained by the Project Officer to serve
as a collection of documents and or items that provide programmatic and/or fiscal
information on the purpose, performance and history of an award to a sepcific
recipient.
Contents:
Parti
1) Copy of application and any application amendments with
Work Plan/Budget (copy)
2) Administrative Review Checklist signed by the Grants
Specialist and the Project Officer (copy)
3) Quality Assurance documentation
Part II
1) Correspondence relating to the application and/or
summaries of same
2) Application reviews, in-house and extramural
3) Programmatic reviews
4) Program Program memo regarding funding recommendation
to Regional Administrator
Part III
A copy of Assistance Agreement and any amendments (a copy
of agreement should be retained until a signed original is
returned by recipient to the Grants Management Office (GMO).
Part IV
1) Copies of Correspondence relating to the awards
A. Award letter
B. Acceptance letter
C. Close-out letter
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2) Correspondence concerning negotiations and agreements
3) Recipient requests for deviation; EPA approval or denial
4) Correspondence concerning continuation or renewal of
project
5) Site visit reports
6) Administrative reports
7) Stop-work order and related correspondence
8) Correspondence concerning termination actions
9) Correspondence concerning disputes and appeals
10) Final determinations
11) Audit reports
12) Regional and General Counsel opinions
13) End of year evaluation
PartV
1) Reimbursement requests (copy)
2) Payment vouchers (copy)
3) Financial Status Reports (copy)
4) Automated Clearinghouse Authorization (copy)
5) Increase and decrease amendments (copy).
6) Close-out checklist/memo (copy)
7) Commitment Notices (copy)
Part VI
Technical Reports •• if the report is too bulky, place it in an accordian file
and rubber band it to the six part file. If it is a film, computerized disk, etc., a document
spelling out its location must be filed in this section.
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2) Payment vouchers
3) Financial Status Reports
4) Automated Clearinghouse Authorization (ACH)
5) Increases and decreases
6) Close-out check list
7) Commitment Notices
Part VI
Funding recap
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OFFICIAL EPA GMO FILE
Official EPA GMO File: The official file developed and maintained by the Grants
Management Office to serve as a composite collection of documents and or items that
provide programmatic and fiscal information on the purpose, performance and history
of an award to a specific recipient.
Contents:
Parti
1) Complete application and ?ny application amendments (original
signed)
2) Administrative Review Checklist (original signed by Grants Specialist
and the Project Officer).
3) Procurement System Certification (original signed)
4) Governor's letter and certification for Superfund enforcement.
5) Anti-Lobbying Certification (original signed)
6) Debarment/Suspension Certification (original signed)
Part II
1) Correspondence relating to the application (copy)
2) Appltiation reviews, in-house and extramural (copy)
3) Programmatic reviews (copy)
4) Program memo regarding funding recommendation (copy)
Part III
Assistance Agreements and any amendments (a .copy of agreement
should be retained until a signed original is returned, by the
recipient)
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Part IV
1) Correspondence relating to the awards
A. Award letter
B. Acceptance letter
C. Interim close-out letter
D. Close-out letter
2) Correspondence concerning negotiations and agreements
3) Recipient requests for deviation; EPA approval or denial
4) Correspondence concerning continuation or renewal of project
5) Site visit reports
6) Administrative reports
7) Stop-work order and related correspondence
8) Correspondence concerning termination actions
9) Correspondence concerning disputes and appeals
10) Final determinations
11) Annulment
12) Requests for audit
13) Audit reports
14) Correspondence related to audit reports and resolution of audit
findings
15) Regional and General Counsel opinions
16) Interim and final audit reports, comments and resolution
17) Final disputes decision and any appeal or reconsideration
determination/resolution documents
PartV
1) Reimbursement requests
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APPENDIX T
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APPENDIX T
CLOSEOUT POLICY FOR ASSISTANCE
AGREEMENTS
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AUG 2 7 1992
MEMORANDUM
SUBJECT: Final Closeout Policy For Assistance Agreements
FROM:
TO:
~
Harvey G. Pippen, Jr., Directo£*~c-
Grants Administration
Assistant Regional Administrators
Grants Management Offices
Regions Z-X
Millie Lee, Chief, Grants operations Branch
Carlene Foushee, Acting Chief, Grants Information and
Analysis Branch
We are pleased to issue the attached final Closeout Policy.
This policy establishes EPA's closeout requirements for closing
out completed grants and cooperative agreements and deobligating
unliquidated obligations for all of EPA's assistance programs.
This policy represents the combined efforts of all of the members
of the Closeout/Deobligation task force over the past year. We
greatly appreciate their time and many contributions in developing
this policy document.
We strongly encourage you to use the policy and again
emphasize the importance of continuously closing out completed
projects and deobligating unliquidated obligations in a timely
manner. Closeout is an essential function of prudent grants
administration.
Finally, we ask that you develop youi .*n specific Regional
K* headquarters) procedures to implement the closeout requirements
in this policy.
If you have any questions regarding this policy, please
contact Bruce Feldman on 260-5268.
Attachment
CC: Official
Reading
Division
M. Ross
L. Ross
M. Lee
R. Johnson
S. McMoran
C. Allison
R. Mitchell
A. Mason
C. Foushee
B. Feldman
M. Cody
E. Haffa
C. Thomas
V. Martin
R. Meunier
Taskforce Members
PM-216F: V.Martin:RM 801 FC:260-9294:8/14/92
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EPA CLOSEOUT POLICY FOR GRANTS AND
COOPERATIVE AGREEMENTS
Introduction
Part I: Purpose and Objectives
Part II: Basic Closeout Requirements for Grants and Cooperative Agreements
A. Roles and Responsibilities
B. GICS Requirements
C. Notification and Follow Up
Part III: Program Specific Requirements
A. State Revolving Fund Program
B. Superfimd
C. Construction Grants
Part IV: Record Retention Requirements
Part V: Audit Resolution and Disputes
Appendix A: Listing of Existing EPA Closeout Regulations, Policies, and Related Guidance
Appendix B: Listing of GICS Data Elements Used in Closeout
Appendix C: Types of Construction Grant Awards
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2
PART I PURPOSE AND OBJECTIVE
The purpose of this document is to establish EPA policy for closing out completed grants
and cooperative agreements for all EPA Assistance Programs.
Closeout is the systematic process by which EPA determines that all required technical
work under a grant or cooperative agreement has been completed by the recipient and EPA, and
all applicable administrative requirements met. Protection of the government's interest and
prudent grants administrative practices require that sufficient time and effort be devoted to the
closeout process.
This document includes the closeout requirements basic to all grants and cooperative
agreements, the roles and responsibilities of EPA and its recipients, and the specific closeout
requirements unique to the Superfund, Construction Grants, and the State Revolving Fund (SRF)
Programs.
The procedures to follow for timely closeout of all completed projects are contained in
40 CFR Part 31 Subpart D, 40 CFR Part 30 Subpart H, 40 CFR Part 35.6780, and the EPA
Assistance Administration Manual (Chapter 40). This policy supplements and clarifies existing
agency closeout policy.
EPA should close out non-construction grant projects within 180 days after receipt
of all required reports and other deliverables. Delays can unnecessarily tie up obligated but
unexpended funds. Also, closeout becomes more difficult with the passage of time because
persons responsible for managing various aspects of a project may resign, retire, or transfer;
memories of events are less clear; the interests of the Project Officer and Project Manager may
shift to other priorities; and award documents may become lost or destroyed.
For Construction Grants, closeout should occur within six months of the last grant action
which can be any one of the following acuons:
• Final audit resolution
• Project screenout
• Project returned unaudited by OIG
• Administrative completion for grants less than $1 million
• Regional or Headquarters issuance of a decision of an appeal filed in accordance
with 40 CFR Parts 30 and 31.
• Final debt collection, forgiveness of debt or dismissal of debt.
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PART H BASIC CLOSEOUT REQUIREMENTS FOR GRANTS AND
COOPERATIVE AGREEMENTS
A. Roles and Responsibilities
This section outlines the basic closeout roles and responsibilities of the Recipient, the
Program Office, the Grants Management Office (GMO) and the Financial Management Office
(FMO).
Recipient
1. Complete all work satisfactorily and timely as specified in the assistance agreement.
2. Submit the following required reports to EPA within 90 days after the project completion
date:
o Final Technical Report
o Final Financial Status Report (Standard Form 269 or 269A)
o Federally Owned Property Report, if applicable
o Invention Disclosure Report (EPA Form 3340-3), if applicable
o Final Request for Payment (Standard Form 270), if applicable
o Final EPA ACH Payment Request, if applicable
o Outlay Report and Request for Reimbursement (Standard Form 271), if
applicable
o Property Inventory of all Federally Owned Property, if applicable
o Final Minority Business Enterprise/Women Business Enterprise Report (Standard
Form 334), if applicable
3. Submit a written request to EPA's award official to request an extension of time to the
90 day period required for submittal of the FSR (or other required reports), along with
a justification for the extension.
4. Submit all manuals, plans, specifications, data, or other deliverables as required in the
assistance agreement to EPA, or make the deliverables available for EPA inspection.
The Program Office (Project Officer)
1. Review and approve all technical reports, including final technical/performance reports
in accordance with the requirements of the award and the statement of work.
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2. Ensure that any/all deliverable; required under the award are received when required by
the award, and are acceptable.
3. Certify to the GMO within 90 days of completion of the project that all work has been
satisfactorily completed. For continuing programs, specific work elements may be
carried forward and funded in the next year provided the recipient submits an application
with an acceptable workplan. For additional information, refer to Comptroller Policy
Announcement N. 88-09, "Disposition of Unobligated Balance of Assistance Awards."
4. Certify to the GMO within 90 days of project completion that all tehnical (programmatic)
award conditions have been met.
The Grants Management Office (GMO)
1. Ensure receipt of final certification of project completion from the project officer, receipt
of all required reports including the final FSR, MBE/WBE, invention disclosure, and
Federally owned property reports, and compliance with all terms end conditions of the
grant.
2. Provide property disposition instructions (as necessary) to recipients, and ensure
receipt/acceptability of property inventory report; and ensure reimbursement to EPA of
its proportionate share of equipment or supply inventories, if applicable.
3. Receive and approve the Final Financial Status Report (except for construction grants)
and:
o ensure timely receipt and distribute copies to program and finance offices as
necessary;
o review and analyze FSR's contents, inching recipient's cost share;
o maintain/update current information in the Grants Information and Control System
(GICS), i.e., FINANCIAL-STATUS-CODE, FINANCIAL-STATUS-DATE, and
ACTION-CODE;
o ensure that financial data on FSR is reconciled with the Integrated Financial
Management System (IFMS);
o determine allowability of any reported indirect costs ^ased :-n the provisions of
the assistance agreement and the final negotiated indirect cost rate;
o determine amount, of any unliquidated obligations and/or funds owed to EPA by
the recipient and provide instructions to the FMO for the disposition of those
funds.
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5
4. Request final audit (if applicable and required for closeout)
5. Prepare ciose-out amendment.
o Ensure receipt of request for final payment; review and approve appropriateness
of such payments and notify the FMO to process or deny the payment.
o Ensure compliance with Agency's carryover policy.
o Ensure that the FMO makes necessary adjustments to IFMS and deobligates
any unliquidated obligations as appropriate.
o Complete Assistance Adjustment Notice (EPA Form 5700-42) or Assistance
Amendment and distribute to FMO and Program Offices.
6. Prepare close-out letter
o Issue final close-out letter to recipient and provide copies to the appropriate
Project Officer and FMO.
7. Retire file and follow appropriate record retention requirements. (See page 11, Part IV)
Financial Management Office (FMO)
1. Assist GMO in reconciling IFMS data with reported FSR data.
2. Review close-out amendment and either deobligate any unliquidated
obligations, or bill the recipier for any funds Hue EPA; establish an accounts
receivable if appropriate and perform follow-up collection efforts.
3. Make necessary entries to IFMS for any deobligations and collections.
4. Approve/process final payment request.
B. The Grants Information and Control Systems (GICS) Requirements
The Grants Information and Control System (GICS) is EPA's official assistance
information management system and plays an integral part in the closeout process. It provides
grants managers with information to manage and track progress on grant agreements. The
system contains a collection of closeout data elements to track a grant's progress through the
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closeout process. Grant specialists update the closeout milestones in GICS by accessing the
appropriate closeout screens in EPA's Automated Grants Document Systems, i.e. the Regional
Automated Grants Document System (RAGDS), the Headquarters Automated Grants Document
System (HAGDS), the Fellowship Automated Document System (FADS), and the Interagency
Agreement Management System (IAMS), as each milestone is achieved. The most frequently
used closeout milestones for non-construction grants are incorporated into a Table below.
Appendix B contains definitions for these milestones and general information on the closeout
screens used for Construction Grants. Further information on these data elements can be found
in the GICS Data Dictionary [GIRD] and the Headquarters and Regional procedural manuals.
COMP-LTR-SENT-CODE/DATE (Ml)
FINANCIAL-STATUS-CODE/DATE (MS)
REAL-PROPERTY-CODE/DATE (L7)
PERS-PROPERTY-CODE/DATE (L2)
INVENTION-CODE/DATE (L4)
FINAL-REPORT-CODE/DATE (L8)
AUDIT-REQUEST-DATE (N8)
AUDIT-RESULTS-CODE (N9)
FINAL-AUDIT-DATE (91)
ACTION-CODE/DATE
C. Notification and Follow Up
1. Closeout Notification
Monthly
The GMO should provide each Grants Specialist a Grants Information and
Control Systems (GICS) printout each month which identifies those
projects/agreements that are in the closeout process or are scheduled to end in the
next 90-120 days. These printouts (Status Report of Projects Completed But Not
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Closed Out) list projects in sequence by project-end-date and indicate the status
of each milestone event leading to close out and the date that it was entered as
such.
90 Days Before End of Project Period
The Grants Specialist prepares for the EPA Project Officer a "completion alert"
90 days before the end of the project period. The memo requests information on
whether the project/budget period needs to be extended or if the assistance award
can be closed out.
2. Follow up Schedule
0-30 Days after Completion.
A letter requesting the necessary closeout reports should be mailed to the individual who
accepted the most recent award document on behalf of the recipient, with a copy to the
EPA Project Officer.
90 Days after Completion
The recipient will submit final progress (technical) reports to the Project Officer 90 days
after the project's completion or end date, whichever comes first and notify the GMO of
their receipt and acceptability. Other reports, including the final Financial Status
Reports, are also due within 90 days, and should be submitted to the Grants Specialist.
The Grants Specialist will then review those projects that have overdue reports (over 90
days) and determine whether another followup letter should be sent to the recipient. This
letter must be tailored to address specific deficiencies of the project, e.g., what required
deliverables were not received and are overdue? A copy of this letter should also be sent
to the FMOVPO.
120 Days after Completion
If the recipient has not provided the information required for closeout 4 months after
completion of the project, the Grants Specialist should confer with the Project Officer
and send another follow-up letter. This letter shall be signed by the RA/ARA or
Director, GAD (for headquarters projects), and addressed to the head of the recipient
organization, with a copy to the FMO\PO. It should provide a chronology of earlier
efforts to obtain the materials required by the agreement, enclose a copy of previous
reminders and follow-up correspondence, and establish a specific date (suggest 2 to 3
weeks) for receipt of a response.
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180 Days after Completion
Closeout should be completed within 6 months (180 days) after the end of ihe agreement
When closeout has been completed, the Award Official should provide the recipient vnt
the closeout letter or a letter of final determination, with ccpies to the FMO and PO
(See Disputes Section in Pan V)
Part HI: Program Specific Requirements
A. State Revolving Fund Loan Program
This section defines the basic policy on the timing of capitalization grant closeout and
highlights specific SRF requirements. Capitalization closeout procedures parallel closeout
procedures for continuing program grants.
In general, closeout will occur at the end of each capitalization grant's budget period, i.e.
when all the cash is drawn down from that grant providing, however, that the audit for the State
fiscal year in which the last cash draw occurred has been issued and any findings resolved.
Closing a capitalization grant will not mean that all statutory work and regulatory requirements
have been satisfied.1 Nor will closeout indicate that all the "work" agreed to in the assistance
agreement has been completed or that all the loans have been repaid. Rather, closeout will
indicate that EPA is satisfied that the State has established a viable and fiscally sound SRF loan
program. EPA will assure continued compliance with statutory and regulatory requirements by
reviewing a State's Intended Use Plan [40 CFR 35.3150], reviewing a State's Annual Report
[CWA Title VI, §606(d)], by performing annual oversight visits of the State's operations [C WA
Title VI, §606(e)], and by receiving audits of the program [CWA Title VI, §606(b)l. If.
however, a State is found to be out of compliance with any part of Title VI or the implementing
regulations, 40 CFR Parts 31 and 35, Subpart K, and corrective action has not been initiated by
the State, a grant cannot be closed out. To close out a capitalization gram, the GMO, m
conjunction with the Project Officer (the SRF Coordinator) would follow the requirements as
specified in Part 0.
B. Superfund
The following are the additional steps each GMO must follow in closing ou a Superfund
Cooperative Agreement. Superfund recipients are usually States, Political Subdivisions, or
Federally Recognized Indian Tribes, and the closeout procedures in this section r.piy to th >e
'For example, a Region may decide to closeout a capitalization gran' before *n equivalency
project has met all of its equivalency requirements [Sixteen Title C inquire...ien'; CWA, Title
VI §602(b)(6)].
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recipients. Recipients of other Superfund grants, such as; Research and Development; and
Technical Assistance Grants (TAG), follow the closeout requirements for project-specific grants.
Superfund Cooperative Agreements
Superfund response Cooperative Agreements (CAs) provide funding from EPA to conduct
the response activity at a Superfund site. These CAs can provide funding for the following types
of activities:
Re-Remedial Activities
Remedial Response
Activities
Other Activities
Preliminary Assessment
(PA)
Site Investigation (SI)
Hazardous Ranking System
(HRS)
Remedial Investigation (RI)
Feasibility Study (FS)
Remedy Selection/Record of
Decision (ROD)
Remedial Design (RD)
Remedial Action (RA)
Removal Program
Core Program
Enforcement
Support Agency
In a Superfund CA, closeout of the CA usually occurs when all work, as specified in the
scope of work, has been completed. Due to the complexity and "umbrella-like" structure of
Superfund CAs, closeout can often become an unduly complicated situation, with many activities
taking place over extended periods of time. To improve our management of Superfund CA
closeout, it is desirable to close out each diverse activity or operable unit as it is completed. As
each activity or operable unit is completed, the activity would be designated as an "Activity
Completion" and the same steps in the closeout process would be followed. In the case of a
pre-remedial or a remedial CA, as each activity (or operable unit) is completed, activity
completion (or operable unit completion) should take place for that discrete activity. This
approach is a more manageable way to ultimately achieve closeout of the entire agreement.
Since many Superfund CAs last for many years and may include more than one site, it
is important to initiate completion by activity, site, or operable unit. This will simplify the
administrative closeout process later on when the entire agreement is closed out, and will help
the cost recovery effort which may begin before all activities at the site are complete or when
all sites under the multi-site are complete.
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10
For a Superfund site-specific CA, if the CA is terminated when a responsible party takes
over the cleanup or the lead changes from State to EPA, the CA should be closed out and any
unliquidated obligations balance should be de-obligated.
A Superfund Core Program cooperative agreement provides funds to a State or Indian
Tribe to conduct CERCLA implementation activities that are not assignable to specific sites, but
are intended to support a State's (or Indian Tribe's) ability to participate in the CERCLA
response program. In the Core Program, the CA is closed out when the activities identified in
the scope of work are completed. Likewise for Enforcement, Support Agency, or Removal
cooperative agreements. When all required work as specified in the scope of work has been
completed, the CA should be closed out. To close out a Superfund CA, the GMO and PO must
follow the requirements specified in Part IL
C. Construction Grants
Construction Grants are awarded to local municipalities to fund construction of waste
water treatment plants. It is EPA policy to close out construction grants promptly; funds not
needed on one project can be deobligated and reallotted to finance other treatment works
projects. The Construction Grants Program is also different from other EPA programs because
this is a delegated program. EPA is responsible for overall program management but most of
the day-to-day administrative duties have been delegated to the State water pollution control
agencies or the US Army Corps of Engineers. EPA Regional Offices retain some project-related
decision authorities that are not legally delegable.
Eligible activities funded by construction grants can include facility plans (Step 1), plans
and specifications (Step 2), and the building of a treatment plant (Step 3). A full listing of the
different types of construction grants is included in Appendix C.
KEY COMPLETION/CLOSEOirr MILESTONES
Physical Completion: When the scope of the work is completed. For Steps 1 & 2,
project completion and physical completion are synonymous. (For steps 2 + 3, 3, 7 & 9
project completion, physical completion, and construction completion are synonymous.)
Initiation of Operations (IO): When the wastewater treatment works becomes capable of
operating for the purposes planned, designed and built. (Steps 3, 2+3, 7 & 9)
Project Performance Certification: One year after IO, the grantee certifies that the
treatment facility is meeting project performance standards. (Steps 3, 2+3, 7 & 9)
Please note that the project cannot be sent to audit until the certification is received.
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11
Administration Completion: All administrative aspects of the project have been
completed, final payment has been requested, eligible costs have been determined, all
grant conditions have been satisfied and the audit has been requested. All excess balances
(unliquidated obligations) should be deobligated at this point.
Audit: Project is sent to the Office of Audit, Office of Inspector General (OIG) for audit.
Audit Resolution: Audit resolution occurs when one of the following actions have
been performed by the Regional Office:
o Issuance of a final determination letter to the recipient.
o Submission of a valid response to the OIG addressing all findings and
recommendations contained in the final audit report.
Closeout: All administrative activities have been completed, including corrective actions
and debt collection; the reviewing agency issues a standard closeout letter to the recipient
and the grant project file is sent to record storage.
•••NOTE-"-
The time between physical completion and administrative completion can be no less than 14
months because the project performance certification period is one year after physical completion and
initiation of operations. The project can not be sent to audit until after project certification. If the IG
accepts the project for audit, it may be 24 months before the final audit report is issued.
PART IV: RECORD RETENTION REQUIREMENTS
EPA's Uniform Administrative Requirements for Grants and Cooperative Agreements to
State and Local Governments (40 CFR Part 31.42) establishes minimum records retention
requirements for all assistance recipients. In general, a recipient must retain all financial
records, supporting documents, accounting books and other evidence of assisted activities for
three years from the date of the final Financial Status Report submission. If any litigation, claim.
or audit is started before the expiration of the three year period, the recipient must maintain ail
appropriate records until these actions are completed and all issues resolved. The retention
period starts on the day the recipient submits its final Financial Status Report. A recipient may
always choose to implement stricter or longer retention periods to meet their own needs. For
construction grants, the retention period starts the day the grantee submits the final payment
request. For the SRF Program, official records include copies of the State/EPA agreements.
SRF Intended Use Plans, SRF Operating Agreements, SRF Annual Reports, and SRF Program
Evaluation Reports. Only the grant agreement can be retired after grant closeout. All other
documents must be retained for Program Management purposes.
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12
Superfund Assistance Agreements
* For recipients'records, the length of retention is 10 years from the date
of submission of the final FSR (unless otherwise directed by the award official).
* For EPA's records, the retention period is 30 years after closeout of the
assistance agreement.
Construction Assistance Agreements
* For recipients, the retention period is 3 years from the date of the final payment
request.
* For EPA's records, the retention period is 20 years from the date of submission
of the final payment request.
ALL Other Assistance Agreements
' For recipients, the length of retention is 3 years from the date of
submission of the final FSR.
* For EPA's records, the retention period is 7 years after closeout of the assistance
agreement.
PARTY: AUDIT RESOLUTION AND DISPUTES
A. Audit Resolution - General Information
EPA Order 27S0.2A (Management of EPA Audit Report* - .d Followup Actions) states that
audit resolution must occur within 150 days of the final audit report issuance. Resolving audit
findings, issues or exceptions is a multi-step process involving many different offices. Audits
which cannot be resolved at the Regional or Headquarters level between the OIG and the Audit
Action Official are referred to EPA's Audit Resolution Board.
EPA relies primarily on Single Audits of recipients carried out in accordance with the
requirements of the Single Audit Act and Federal Audit policy expressed in OMB Circulars A-
128 and A-133. Consistent with that policy, most assistance agreements will QOJ; receive
individual final audits. A final audit is usually not a prerequisite for clos^owt.
All Superfund Cooperative Agreements are subject to audit by the Gffior of Inspector
General. Projects may be audited prior to or even after closeout. The Program Office is usually
responsible for requesting an audit. Closeout of all completed phases of res-tofu-* activities
should be undertaken regardless of whether or not an audit is actually performed. However, any
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13
findings/issues arising from an audit must be resolved before the cooperative agreement can be
officially closed out.
For Construction Grants, an audit request is sent to the appropriate Divisional Inspector
General for Audit who determines if an audit will be conducted. For more detailed information
on the steps involved in this process, refer to the appropriate Construction Grant Program Audit
and Closeout Procedures.
The OIG will normally audit construction grants according to criteria published in the OIG
Manual, Chapter 102 - Audit Planning Appendix 6, Issued October 1984 and revised June 5,
1990.
If the OIG (EPA, contract CPA firm, State Auditor, or GAO) conducts an audit, the
project cannot be closed out until the final audit is completed, all findings and recommendations
are resolved, corrective actions are completed, and any outstanding debts are collected.
B. Disputes
Definition
Disputes are petitions of review filed by recipients asking EPA to reconsider decisions
affecting assistance agreements.
Many (but not all) disputes between recipients and EPA concern the eligibility or
allowability of a project or portions of a project for reimbursement by EPA under the provisions
of the assistance agreement, usually resulting from an audit or other determination by EPA's
award official.
Authority
Disagreements between EPA and applicants/recipients should be resolved at the lowest
possible level by the EPA Project Officer and the appropriate Grants Specialist having the
authority to resolve the dispute.
The applicable regulations depend on the award date of the grant agreement or
amendment. If the award date is before October 1, 1988, 40 CFR Part 30 Subpart L applies.
If the award date is after October 1, 1988, 40 CFR Pan 31 Subpart F applies. Disputants may
not ask EPA to review the following Agency actions:
1. Denials of requests for a deviation under 40 CFR Part 30, Subpart J;
2. Bid protest decisions under 40 CFR Parts 31/33;
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14
3. National Environmental Policy Act decisions under 40 CFR Part 6;
4. Advanced wastewater treatment decisions of the Administrator;
5. Policy decisions of the EPA Audit Resolution Board; and
6. Debarment/suspension actions taken by the Director, Grants Administration Division.
Role of the Disputes Decision Official
The Award Official may act as the Disputes Decision Official (DDO) or appoint a senior
EPA Official who is knowledgeable about EPA's assistance programs as the DDO. The DDO
reviews and issues the final decision for all disputes. If an applicant or recipient disagrees with
the Regional DDO's decision, the disputant may file a request for a review with the Regional
Administrator (RA), who will in turn issue a written determination.
If an applicant or recipient disagrees with a RA's decision, they may request a review
by the appropriate Assistant Administrator (AA). The AA in the appropriate media Program
Office has the authority to review appeals of RA decisions. The AA will analyze the request
to determine if it warrants further review. The AA will then notify the recipient in writing of
their decision to review or not to review the disputed action. In the limited number of cases
which are reviewed, the AA will also provide the results of the review at this time. The
recipient may request reconsideration of any decision of the RA or AA.
Impact of Disputes on Closeout
Disputes can be very resource intensive and will bring the audit decision-making process
under closer scrutiny. It is for this reason that the Audit Action Official should resolve all audit
findings and avoid incomplete final determination letters (see Part V Audit Section). Inadequate
or incomplete audit resolution can increase the number of disputes filed by recipients.
Unresolved disputes further delay closeout of the award until the action or claim is settled.
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15
APPENDIX A
LISTING OFEXISTING EPA CLOSEOUT REGULATIONS, POLICIES, AND RELATED
GUIDANCE
(1) 40 CFR Part 4 (Uniform Relocation Assistance), or 49 CFR Part 24 if applicable;
(2) 40 CFR Pait 30 (for non-State and local government recipients);
(3) 40 CFR Part 31 (for State and local governments);
(4) 40 CFR Part 32 (Debarment and Suspension);
(5) 40 CFR Part 33 (Procurement for non-State and local government recipients);
(6) 40 CFR Part 34 (Restriction on Lobbying, interim final rule);
(7) 40 CFR Part 35 (State and Local Assistance);
(8) 40 CFR Part 40 (Research and Demonstration Grants);
(9) 40 CFR Parts 45 and 46 (Training and Fellowship grants);
(10) OMB Circulars A-102 (Grants and Cooperative Agreements to State and Local
Governments) and A-128 (Audits of State and Local Governments);
(11) OMB Circulars A-l 10 (Grants and Cooperative Agreements with Institutions of Higher
Education, Hospitals and Other Nonprofit Organizations), A-133 (Audits of Institutions
of Higher Education and Other Nonprofit Institutions), and A-21 (Cost Principles for
Universities;
(12) OMB Circulars A-87 (Cost Principles for State and Local Governments) and A-122
(Cost Principles for Nonprofit Organizations);
(13) Policy on Performance-Based Assistance (EPA policy memorandum dated May 31.
1985);
(14) Comptroller Policy Announcement No. 88-09 (Disposition of Unobligated Balance of
Assistance Awards);
(15) EPA Directive 2750 (Management of EPA Audit Reports and Follow-up Actions).
(16) Chapter 40 of EPA's Assistance Administration Manual
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16
(17) Construction grants Program For Municipal Wastewater Treatment Works Handbook cf
Procedures
(18) CG-250, Managing Construction Projects Student Manual; and
(19) The Strategy Paper for Closing Out the Construction Grant Program, dated 10/90 and
formally released January, 1991.
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17
APPENDIX B
GICS DATA ELEMENTS FOR CLOSING OUT NON-CONSTRUCTION GRANTS
GICS contains a series of data elements used to track grant closeout. This appendix
provides definitions and applicable codes for the most commonly used data elements.
Note: not all closeout data elements are available in RAGDS, FADS, or JAMS. It is
CAD's intention to revise the GICS Data Dictionary and appropriate screens in the
Automated Grants Document Systems to make all standard closeout data elements
universally available.
COMP-LTR-SENT-CODE/DATE
A code indicating the most recent completion/follow-up letter sent to the recipient
For purposes of Closeout the following codes, are applicable:
A Pre-completion reminder mailed
B Completion reminder mailed
C Reminder(s) to signatory of agreement
D Warning to President/chief officer of recipient organization
X Final determination recommendation prepared by Grants Operations Branch and
forwarded for required approvals/concurrences
FINANCIAL-STATUS-CODE/DATE
A code indicating the status of the final financial status report (report of expenditures)
submitted by the recipient. The d; te related to this code is contained in Final Financial
Status Report Date (Ref No M5-A, Financial-Status-Date).
For purposes of Closeout the following codes are applicable:
DE Financial status report approved; FMC, Las Vegas requested to deobligate
DR Financial status report approved; EPA owes recipient; Recipient advised to draw
down
NA Not applicable to this project/budget period
OU Financial status report approved; Recipient owes EPA; Requested to submit
refund or adjust letter of credit
PU Financial status report approved; Recipient has paid EPA
RA Received an acceptable/approved report; Zero unobligated balance
RP Received report/acceptability to be determined
RU Received an unacceptable report; Follow-up to recipient initiated
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18
PERS-PROPERTY-CODE/DATE
A code indicating the status of the personal property or equipment inventory purchased
under a grant. The date related to this code is contained in Personal Property Inventory
Pite (Ref No L2-A, Pers-Property-Date).
For purposes of Closeout the following codes are applicable:
DI Disposition instructions issued; further action required
DW Disposition instructions being withheld by Grants Administration Staff
DX Disposition instructions executed/completed; no further property action required
NA Not applicable to this project
PD Project Officer provided disposition recommendation
PR Project Officer received report; Grants Administration staff awaiting disposition
recommendation
RF Received and forwarded to Project Officer
RN Received negative report
RP Received positive report
REAL-PROPERTY-CODE/DATE
A code indicating the status of the real property inventory purchased under a grant. The
date related to this code is contained in Real Property Inventory Date (Ref No L7-A,
Real-Property-Date).
For purposes of Closeout the following codes are applicable:
DI Disposition instructions issued; further action required
DW Disposition instructions beir/j withheld
DX Disposition instructions executed/completed; no further property action required
NA Not applicable to this project
PD Project Officer provided disposition recommendation
PR Project Officer received report; awaiting disposition recommendation
RF Received and forwarded to Project Officer
RN Received negative report
RP Received positive report
INVENTION-CODE/DATE
A code indicating the status of the invention report. The date related to this code is
contained in Invention Report Status Date.
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19
For purposes of Closeout the following codes are applicable:
NA Not applicable to this project/budget period
RF Received and forwarded to Office of General Counsel
RN Received negative report
RP Received positive report
FINAI^REPORT-CODE/DATE
A code indicating the status of the final report. The date related to this code is
contained in Final Report Status Date (Ref No L8-A, Final-Report-Date).
For purposes of Closeout the following codes are applicable:
AA Report approved; confirmation in official project file; EPA Report Publication
Number assigned and recorded in Report Publication Number (Ref No 40-A,
Publication-No)
NA Not applicable to this project
PR Project Officer received report; awaiting peer review/approval; (Consider
applicability of entering code "FR" in Action Step Code (Ref No 23-A,
Action-Code) and date in Action Step Date (Ref No 24-A, Action-Date))
RF Received and forwarded to Project Officer
RU Received an unacceptable report; follow-up to recipient initiated
AUDIT-REQUEST-DATE
The date of the request for a financial audit of a non-Construction grant. Use of this
element is limited to grants meeting certain select cnu ha and is not applicable to Single
Audits. For Regions using Audit Request Code (Audit-Request-Code, Ref No N8-A),
this is the date related to the code contained in that element.
Positions 1-2 - Year
• 3-4 - Month
" 5-6 - Day
AUDITS-RESULTS-CODE
A code indicating the status of the completion of the financial audit of a
non-Construction grant. This dement is not used for Single Audits. The date related
to this code is contained in Audit Completion Date (Ref No N9-A, Audit-Results-Date).
For purposes of Closeout the following codes are applicable:
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20
CA Cost analysis
FA Final audit
IA Interim audit
RN Received notice of cancellation of audit request
RP Received audit report
FINAL-AUDIT-DATE
The date a final audit is resolved satisfactorily.
Positions 1-2 - Year
" 3-4 - Month
" 5-6 - Day
ACTION-CODE/DATE
A code which identifies the current status and/or disposition of a prospective project,
application, or active or completed project for which financial assistance has been
requested or given. Codes are from the GICS-ACTION-CODE-TABLE [not GICS-
ACTION-CODE-NON-TABLE] The date related to this code is contained in Action
Step Date.
For purposes of Closeout the following codes are applicable:
FA Completion of all administrative work connected with an assistance agreement
by the administering office. Applicable only to WWT Construction and State
Revolving Fund (Project level).
FC Completed assistance agreement closed c For EPA assistance agreements,
letter issued by EPA to the recipient closing out the agreement.
FD Project completion: For assistance programs administered in Headquarters, the
award official (Chief, Grants Operations Branch) has issued final determination
to the recipient.
FR Project close-out complete except for approval of final project report and final
disposition of property, if any. Applicable only to assistance program
administered in Headquarters.
FT Assistance terminated by EPA before completion. Termination letter sent front
Grants Operations Branch or appropriate Regional grants a&.'iiustnrion staff to
the recipient.
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21
GICS SCREENS FOR CLOSING OUT CONSTRUCTION GRANTS
Closeout milestones for construction grants are found on a number of different screens
in GICS. Screens include:
* Post Award/Targeting (PTN) which tracks the completion 01* certain activities
such as WWT Stan, Initiation of Operation, development of the O&M Manual,
Initiation of Administrative Completion.
* Project Completion (PCN) which tracks a grant's progress through Physical
Completion and Administrative Completion.
* Payment Data (PDN) which tracks cumulative payment data.
Because Construction Grants is a delegated program, data entry can take place at the delegated
State or in the Regional office. Regional procedures vary greatly.
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22
APPENDIX C
Types of Construction Grant Awards
Step 1: Development of a facilities plan. No new awards were issued after 12/29/81. It is
EPA policy that all Step 1 projects should have been completed by 9/30/85.
Step 2: Preparation of plans and specifications for a treatment works. No new awards were
issued after 12/29/81. It is EPA policy that all step 2 projects should have been completed by
9/30/85.
Step 3: Building of treatment works and related services and supplies.
Step 2 + 3: Combination design and building of a treatment works and building related
services and supplies.
Step 7: Combination design and building of a treatment works wherein a grantee awards a
single contract for designing and building a treatment works.
Step 9: Construction of a State training wastewater facility combining design and-building for
operations and maintenance personnel.
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APPENDIX U
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APPENDIX U
PERSONAL PROPERTY UNDER EPA
ASSISTANCE AGREEMENTS
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PERSONAL PROPERTY
UNDER EPA ASSISTANCE
PROJECTS
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PERSONAL PROPERTY
UNDER EPA ASSISTANCE
PROJECTS
Table of Contents
Page (s)
Universities and Non-Profits 1
State Governments 2
Local Governments 3-4
' All Other Recipients 5-7
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PERSONAL PROPERTY UNDER EPA ASSISTANCE PROJECTS
NON-PROFIT INSTITUTIONS OF HIGHER EDUCATION conducting basic
or applied research and NON-PROFIT ORGANIZATIONS whose primary
purpose is the conduct of scientific research [40 CFR Part 30]
A. Purchase
i. The recipient may purchase personal property if authorized to do so
in the assistance agreement.
2. If a piece costs $10,000 or more the recipient must receive the
Award Official's prior approval.
3. Title is vested In the recipient subject to the following:
a. EPA may reserve the right to transfer title for property with
an acquisition cost of $1,000 or more to the Government or
a third party any time within the life of me project or within
120 days after project completion. EPA must identify this
property in the assistance agreement or otherwise in writing.
b. If EPA does not reserve the right to transfer title, the recipient
has no other obligations or accountability to EPA.
B. Disposition
1. Non-expendable personal property with a unit acquisition cost of less
than S1.000
a. The recipient has no accountability to EPA.
2. Non-expendable personal property with a unit acquisition cost of
greater than $1.000
a. If EPA reserves the right to transfer title to the Federal
Government or a third party
1) EPA must instruct the recipient to ship the property,
and;
2) EPA must reimburse the recipient for its proportionate
share of the fair market value of the property, plus
reasonable shipping and storage costs.
3. Expendable personal property
a. The recipient has no accountability to EPA.
Page I
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PERSONAL PROPERTY UNDER EPA ASSISTANCE PROJECTS
STATE GOVERNMENTS [40 CFR Part 31]
A. Title
1. Title to equipment is vested in the recipient subject to the following:
a. EPA may reserve the right to transfer title for property to the
Federal Government or a third party any time within the life
of the project or within 120 days after project completion.
EPA must identify this property in the assistance agreement
or otherwise in writing.
B. Use, Management and Disposition
1. A State will use, manage, and dispose of equipment acquired under
assistance in accordance with State laws and procedures.
2. When title to equipment is transferred, by EPA, the recipient shall
be paid an amount calculated by applying the percentage of
participation in the purchase to the current fair market value of the
property.
C. Supplies
1. Title to supplies acquired under an assistance project will ve.it, upon
acquisition, in the recipient.
2. If there is a residual inventory of unused supplies exceeding $5,000
in total aggregate fair market value upon termination or completion
of the award, and the supplies are not needed on other Federally
sponsored activities, the recipient shall compensate the awarding
agency for its share.
Page 2
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A.
PERSONAL PROPERTY UNDER EPA ASSISTANCE PROJECTS
LOCAL GOVERNMENTS [40 CFR Part 31]
Title
1. Title to equipment is vested m the recipient subject to the following:
a. EPA may reserve the right to transfer title for property to the
Federal Government or a third party any time within the life
of the project or within 120 days after project completion.
EPA must identify this property in the assistance agreement
or otherwise in writing.
B.
Use
3.
Equipment shall be used by the recipient in the program or project
for which it was acquired as long as needed, whether or not the
project or program is supported by Federal funds.
When no longer needed for the original program or project, the
equipment may be used in other activities currently or previously
supported by a Federal agency.
The recipient must follow the Property Management Standards of 40
CFR 31.32 (d).
Supplies
Title to supplies acquired under an assistance project will vest upon
acquisition, in the recipient.
1.
2. If there is a residual inventory of unused supplies exceeding $5,000
in total aggregate fair market value upon termination or completion
of >se award, and the supplies are not needed on other Federally
sponsored activities, the recipient shall compensate the awarding
agency for its share.
Page 3
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PERSONAL PROPERTY UNDER EPA ASSISTANCE PROJECTS
LOCAL GOVERNMENTS [40 CFR Part 31J
D. Disposition
1. When original or replacement equipment is no longer needed for the
original project or program or for other cctivities currently or
previously supported by a Federal agency:
a. items of equipment with a current per-unit fair market value
of less than $5.000 may be retained, sold or otherwise
disposed of with no further obligations to EPA.
b. Items of equipment with a current per-unit fair market value
of SS.OOO or more may be retained or sold and the awarding
agency shall have a right to an amount calculated by
multiplying the current market value or proceeds from sale
by EPA's share of the equipment
c. When title to equipment is transferred, by EPA, the recipient
shall be paid an amount calculated by applying the
percentage of participation in the purchase to the current fair
market value of the properly.
Page 4
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A.
PERSONAL PROPERTY UNDER EPA ASSISTANCE PROJECT*
ALL OTHER RECIPIENTS [40 CFR Part 30J
Purchase
1.
2.
3.
B. Use
1.
The recipient may purchase personal property if authorized to do so
in the assistance agreement
If a piece costs $10,000 or more the recipient must receive the
Award Official's prior approval.
Title is vested in the recipient subject to the following:
a. If the acquisition cost is $10,00 or more, the recipient must
assure that EPA's interest is adequately reflected and
protected in compliance with all recordation or registration
requirements of the Uniform Commercial Code.
b. The recipient must follow the Property Management Standards
01 40 CFR 30.531.
c. EPA may reserve the right to transfer tide for property with
an acquisition cost of $1,000 or more to the Government or
a third party any time within the life of the project or within
120 days after project completion. EPA must identify this
property in the assistance agreement.
d. The recipient must follow disposition requirements of 40 CFR
30.532.
For all personal property purchased with assistance funds, the
recipient must adhere to the following:
a. The property must be used in the EPA project for which it
was acquired as long as needed, whether or not the project
continues to be supported with EPA funds.
b. If it is not needed on the original project the property can be
used on other EPA project.
c. If the recipient does not have other EPA projects the recipient
may use the property for other Federally-funded projects.
Page 5
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PERSONAL PROPERTY UNDER EPA ASSISTANCE PROJECTS
ALL OTHER RECIPIENTS [40 CFR Part 30]
C. Disposition
1. If EPA reserves the right to transfer title of any non-expendable
personal property with a unit acquisition cost of greater than $1,000
to the Federal Government or a third party;
a. EPA must instruct the recipient to ship the property, and;
b. EPA must reimburse the recipient for its proportionate share
of the fair market value of the property, plus reasonable
shipping and storage costs.
2. If the recipient wishes to use the property on other than Federally
funded activities, it must follow these rules for disposition:
a. Non-expendable personal property with a unit acquisition cost
of less than $1.000
1) The recipient, except for a profit maker, may keep the
property or sell it and keep the proceeds. There is
no further accountability to EPA.
2) If profit making organizations keep the property or sell
it they must reimburse EPA for its proportionate share
of the current fair market value.
b. Non-expendable personal property with a unit acquisition cost
of $1.000 or more
1) The recipient may keep the property, provided they
compensate EPA for its proportionate share of the
current fair market value.
c. Expendable personal property with a total aggregate fair
market value of $1,000 or more
1) The recipient may keep the property or sell it if EPA
is reimbursed for its proportionate share of the current
fair market value.
Page 6
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PERSONAL PROPERTY UNDER EPA ASSISTANCE PROJECTS
ALL OTHER RECIPIENTS [40 CFR Part 30]
C. Disposition (continued)
3. If neither the recipient nor EPA has a need for the property, EPA
must report the fact to the General Services Administration to
determine whether a need exists in another Federal agency.
a. if a need exists elsewhere, the recipient will be instructed
where to ship the property and will be reimbursed for its
proportionate share, plus reasonable shipping and storage
costs.
b. If the property is not needed elsewhere, the recipient must
sell it and reimburse EPA for its proportionate share of the
sales proceeds less any reasonable handling expenses.
Page 7
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APPENDIX V
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APPENDIX V
EPA ORDER 2200.4, "REVIEW PROCESS FOR
SCIENTIFIC, INFORMATIONAL AND
EDUCATIONAL DOCUMENTS"
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ENVIRONMENTAL
PROTECTION TRANSMITTAL
AGENCY
2200.4
Decanter 28. 1«»82
PUBLICATIONS AMD COMMUNICATIONS MATERIALS - GENERAL
MATERIAL TRANSMUTED:
EPA Order Mo. 2200.4 - Review Process for Scientific, Informational
and Educational Documents.
MATERIAL SUPERSEDED:
None.
FILING INSTRUCTIONS:
File the attached material in numerical order in a three-ring binder
established for EPA Directives System.
P. Morton
Assistant Administrator for Administration
Dw:
Directives
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ENVIRONMENTAL
PROTECTION ORDER 22004
AGENCY
PUBLICATION AND OOnrUffllCATIOTC MATERIALS - GPIRRM.
REVIEW PROCESS FOR sciorriFic, piFORfwrinriAL AND EpncATiQHAL
l. PURPOST.
a. This Order establishes Agency policy on reviewinq scientific, infor-
mational or educational materials. The purpose of this review process is to
protect the technical and scientific quality of these types of public materials
distributed by the Environmental Protection Agency, and ensure that they are
based on the best scientific and technical evidence available. Such a review
process will further enqender the respect and recognition deserved by Anency
scientists and staff.
h. The process will provide a clearly defined route for the expeditious
review and approval of the publications before their public release. The goal
is to establish Agency responsibility for literature published in its nane and
by its employees when they are acting in an official capacity. This rlocunent
will not be construed as constituting any suggestion of constraints on the
fme expression of Agency employees.
c. This Order is intended to supplement other applicable guidelines and
•nendations, and supersedes other directives only to the extent that it
inconsistent with then. Any program area or office may adopt procedures consistent
with this Order to meet its specific needs.
2. oogjrrorrs SUSTECT TO RT/IEW.
a. "tie review process described in Paragraph 5 is applicable to all scientific,
informational, or educational publications, designed for public distribution and
created by an EPA erployee, contractor, gr?ntee or consultant with the excep-
tions of:
(1) Congressional testimony;
(2) verbatim testimony from hearings;
(3) Advance Notices of Proposed Rulemakings (AlTPRM's), proposed or
final regulations subject to a formal comment period;
Oist: directives Distribution Initiated by
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2200-4
(4) pro«w releases approved by the Office of Puhlic Affairs within
the office of the Administrator;
legal opinions, briefs or memoranda, including initial, final,
or other decisions in quasi-judicial administrative proceedings;
(6) Pederal Rpiister Notices;
(7) ftotices of Puhlic Hearinqs;
(8) t quest for Proposals;
cuhlications hy EPA employees proposed for scientific journals
which incorporate peer review (inclusion of a disclaimer statement is apnro-
nriate when policy issues are incorporated in the article);
(in) Criteria Documents or other similar documents subject to
A for~wl puhlic comment period or review hy the Science Advisory Board or
the Vience Advieorv Panel;
(11) advisory cormittee statements and reports;
(12) materials Generated on an employee's own time usinq private
facilities:
(13) 'internal policy statements or memoranda; and
(14) official Anency correspondence.
3. \PPLlCAniLITY. Wese Guidelines are applicable to ercloyecs acting in an
official camcity rt!?«-ed to their wnrk for the Anency. Ttiey are also applicable
to HPA contractors, consultants, and grantees to the extent provided for in
thoir aoreo-npnt with F?A. Publications by EPA employees are subject to review
if they are generated on Agency time or are based on materials derived from EPA
suoport-.M activities. This Order does not provide for, nor describe, all -of the
stcos in the publication process; it is desioned to outline the mview proopdur^
This Order should not he construed to conflict with the disclosure provicions of
the Freedom of Information Act.
4. nrrpimnns.
a. TTie tern "publication" induces all 1?PA generated materials that may be
released in mass to the general public, including:
(1) written statements needed to satisfy a statutory or regulatory
reouirsment;
(2) published or unpublished bonks, manuals, and research reports;
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~1
22JV1.4
i3> infonaf.cnil brochures cr iracenals an.i newsletters or other
periodic reports;
(4) publications by EPA enployjes nreposo-J for outsit journals other
than t_ose that incorporate peer rev IP-;
(S) project reports and other '.atarials file- *i*ih the rational Technical
Information Service (NTIS);
(6) EFA puDlished proceedings r^ulting fr-m -Vjency sponsored conferences,
wortshors, and seminars (oarers by non-F^A e.Tpioyees should go through this peer
review process or co-.tain an
(7) cop.tri&Jtiorr-, made to pj?I -cations by intewaenc/ workinq groups
where authorship is to ^ attributed to EPA. or its eupJoyecs (these publications
should qo through this peer review process or contain a? adequate disclaimer);
(3) audiovisual materials desi^neJ to be rsieds<»d to the general public
in other than a single presentation; or,
(9) ccrouter software desij^- for release to the general public.
5. PSQCEDURSS.
a. Initiation of rne Review Process.
(1) Tfse review process is initisteo vhen the author (hereinafter includes
authors) submit? a publication to hisA«cr innc^isrc s-jTcrvisor or office director
for review, ccocther with recorrandaticr.s f-r at least two peer reviewers who
should be specialists in the subject. The author nay raquest that a reas-*iable
review schedule be established to ensure tiieiy processing.
(2) Tho nanuscript should h» in near-finishef forn to the satisfaction
of the author. Typically, it should bs in a nouble-spccnd, typed format with
all of the necessary tables, charts, illustrations and figures attached. A
designated supervisor evaluates the te*w and f3n.-an" : it to, usually, the author's
imenried reviewers for scientific and cechnical re; lew. nRvievk-s ^ay be done
sinultaneously in order co reduce the tine required.
(3) Additional review by other EPA offices antf laboratories may be
requested by any office through which a publication, mist pess enro»rt-e to its
final publication form.
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ORDER 2200.4
b. Peer Review.
(1) Beer review is designed to identify weak, .-Vxjbtf'Jl, amhinuoi:^ ~>r
(insupportable statements or conclusions, l^e peer reviewer is exnoct-^l tn <-../.-nj-
ate the manuscript for general content, organization and scooe, prespitfln.vi *n^
quality of data, validity of analytical techniques, soundness of conclusion^.
and consistency of the text with tables, figures, illustrations and cans.
(2) A reviewer should use marginal notes or interlineations on th«
draft publication to indicate suggested chanqes or questions. '.Jhore sunnos-.ions
are numerous or complex, or where mnre serious questions arise, an attache^
memorandum is appropriate. Narked-up drafts, and accompanying statements from
reviewers, are returned directly to the author unless other directions are provided.
(3) Hevi«*ws should be completed in a reasonably prompt fashion. °eer-
reviewers and those in the administrative chain should make e**»ry attest to
meet the proposed time schedule. A goal would be for review from the office
director level up through the Associate, Assistant or Rpaional Vhunjstrator
level to be completed within two weeks. Refusal at any level of manaqoment to
approve a document may be appealed once to the next hiqher l*»vel of nwnaqc'ner.t.
c. ttedrafting.
(1) TTie author should make efforts to give thoughtful consideration to
and to acconwodate the cements provided by reviewers in modifying and redrafting
of the text. Tn preparing a revised draft, acceptable changes and corrections
should be incorporated. If only relatively minor differences of opinions on
scientific or technical issues exist between the author and reviewers, th*»
author should briefly explain his positions on the revised draft wh"n it is sent
out for re-review. 7toe author should also indicate changes that "iav or
i.c* h-n-3 been made so as to alert the reviewers of a revised draft.
(2) Where substanti.il differences or misunderstandings occur, th*
author should explain his/her views in more formal comments in a
attached to the revised draft of the manuscript. Informal consultation
discussion between reviewers and author are highly desirable in order to clarify
points of view and to facilitate agreement when significant differences in^e.
(3) The review process is repeated until the author feels that the
proposed publication in ready for submission for final administrative and
technical, review. At this point, statements of concurrence and the siqnar.ure
of the designated peer revievnrs should S» attached to the text. In caso^
the author has not reached a consensus with the reviewers, comments on th*>
of their differences, prepared by tho reviewers, should be attached to th^
and transmitted to subseouent administrative? levels for review.
-A-
-------
ORDER
2200. 4
d. Administrative Review.
(1) The prepared publication should then he submitted to the office
director level for review, This office is expected to orovirte final
for technical and scientific soundness and overall organization and
of data.
(2) At this level, or if aporopriate at a lower level, a
outlining any expenditures, and sources of funds or priorities, or unusutl condi-
tions should be attached. This memo should also include plans for publication,
dates, and the anticipated number of copiis, as wpll a«? the purpnsw of the publi-
cation, the intended audience, a full description of the proposed format (i.e.,
size* number of pages, design and color) and/or a mockup of the finished product.
(3) The publication and accompanying memorandum then move to the Associate,
Assistant or Regional Administrator who has final authority on deciding whether
the document is a "major" document which then must be reviewed by the Science
Advisor and/or the Office of Public Affairs. In the Office of t!.e Administrator,
the office director will have responsibility for the document and make this
decision. In some cases, certain documents will be reviewed by both the Science
Advisor and the Office of Public Affairs.
(4) All documents which are not "major" should he carefully examined
before publication as to their technical and scientific credence and quality.
The Associate, Assistant, or Regional Administrator is responsible for these
documents with regard to conformity with budgetary and quality guidelines.
e. Review by the Science Advisor
(1) If a document of any cost contains significant scientific or technical
uncertainties, it becomes a "major" document subject to review by tho
-------
°*°f* 2200. 4
(3) The Science Advisor, or his riesianate, will review documents for
general scientific and technical content, clarity, logic, consistent , soundness
of conclusions, organization and scope, presentation and quality oL data, validity
of analytical techniques and overall conformity with research and publication
ains of the Agency. The Science Advisor will develoo .systems for review, for
report of comments to the author, and for notifying program areas of the final
decision regarding the publication.
f. Administrative and Technical Review by the Office of Public Affairs
(1) If a document falls into any of the following categories, it is a
"major- document subject to review by the Office of Public Affairs:
- any material of any cost that has policy implications. The
Associate, Assistant, or Regional Administrator in whose
prooram, region, or office the documents originated,
is responsible for determining if a report has policy
implications;
- any product from a project funded at 550,000 or more;
- any single product that costs $10,000 or more to print;
- any category or series of reports that costs $25,000 or
more a year to print; or,
- any periodical as defined by OMB Circular A-3.
(2) The Director of the Office of Public Affairs, or his designated
representatives, will review the manuscript on behalf of the Administrator. The
Director of the Office of Public Affairs may send manuscripts related to policy
issues to other senior officials in the Agency for additional internal review.
(3) The Office of Public Affairs will review both technical and non-
technical information materials for conformity with EPA's Public Information
Policy and Graphics Standards System. The Office of Public Affairs will oversee
the entire publication and printing system for major documents of the Agency to
ensure consistency and to avoid duplication. The Office of Public Affairs will
also be responsible for approving the mechanical matters of distribution,
manner of printed presentation, conformity to budget requirements, and overall
consistency with Agency goals. The Office of Public Affairs will develop systems
for review, for report of comments to the author, and for notifying program areas of
the final decision regarding the publication.
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OBOE*
2200. 4
q. Arcroval and Publication Process
(1) The final nanuscript, it annroved by the Associate, Assistant,
or i*»-jion*l Administrator is returned to the author for appropriate distribution
or ouhlication. "Major" documonts must he approved by the Science Advisor and/or
the office of Public Affairs prior to publication. Following such approval,
each adrir.istrativp office that participated in the review process will he notified
of the action. The author is responsible for ensuring publication anil distribution
in accordance with guidelines established by the Office of Public Affairs.
(2) Papers nrepared for publication for outside journals are returned to
the author after aopropriate approval. Qch administrative office that partici-
pated in the review procrss will be notified of this action. Tfce author is
responsible for mailing the text to the outside journal and for supplying appropriate
offices in the Agency with depository copies. At this point, the paper may be
distributed by the author to the general public.
(3) In the event of an unfavorable review by OPA and/or the Science
Advisor, the nanuscript is returned to the originating office or the author as
is anonnriatc. All conrents should be addressed and necessary revisions made.
h. Products of External Contracts and Grants.
(1) F3>A encouranns the independent publication of the results of its
contract and grant research in appropriate scientific journals as an important
method of recording and renorting scientific information. Any journal article
so published must, however, contain the following statement:
•Although the research described in this article has been
funded wholly or in part by the United States Owironmental
Protection Agency through contract or grant (number) to (name),
it has not been subjected to the Agency's required peer and
policy review and therefore does not necessarily reflect the
views of the Agency and no official endorsement should be
inferred."
(2) When an author receiving a contract or grant from EPA sends out a paper
for publication, a courtesy copy shouM also be sent to the EPA Project Officer who
will forward it to the appropriate Offion Director, Associate, Assistant, or Regional
Administrator, and the Science Advisor, following publication, copies of the journal
paper should be submitted to addressees in quantities as may be directed by the
Project Officer. Provisions to ensure EPA receipt of journal papers by contractors
or grantees should be included in research agreements..
-7-
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ORDER
2200.4
(3) Informational materials, reports, and other products produced under
an EPA contract, grant, or cooperative agreement should go through a comparable
systen of review prior to their release to the public as an EPA publication or
product. The Project Officer is responsible for insuring that adequate EPA
review consistent with the rights and data clauses of EPA contracts, grants or
cooperative agreener.ts is conducted, including approvals by appropriate Associate,
Assistant, or Regional Administrators and the Science Advisor and/or Office of
Public Affairs, if necessary. Qrant officers developing grants which involve
public information/public participation activities should encourage the use o*.
cooperative agreements which enable EPA to require the grantees to submit
their material for review and/or approval prior to its conpletion and distribution.
Anne >1. Gorsuch -
Administrator /
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APPENDIX W
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APPENDIX W
SAMPLE INTERAGENCY AGREEMENT
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Page 1 of 3
United States Environmental Protection Agency
Washington DC 20460
c n A Interagency Agreement /
tPA Amendment
Part I - General Information
6. Name and Address of EPA Organization
ENVIRONMENTAL PROTECTION AGENCY
ENVIRONMENTAL RESEARCH LABORATORY
200 S.W.35TH STREET
CORVALLIS, OR 97333
1. EPA / IAG Identification Number
DW1 49361 41 -01-0
2. Other Agency ID Number
3. Type of Action
NEW
4. Funding Location
by Region
XI
5. Program Office
Abbreviation
ERL/COR
7. Name and Address of Other Agency
INTERIOR, DEPARTMENT OF THE
US GEOLOGICAL SURVEY, WATER RESOURCES
DIVISION, P.O. BOX 1350
ALBANY, NY 12201
s. Project Title Stream Discharge and Water Quality in the Catskill Mountains of New York
9. EPA Project Officer (Name, Address, Telephone Number)
PAULSEN, STEVEN
EPA/ERL
200 S.W. 35TH STREET
CORVALLIS, OR 97333
(503) 754-4428
11. Profect Period
03/01/931002/28/96
10. Other Agency Project Officer (Name, Address, Telephone Number)
MURDOCH, PETER S.
DOI/USGS/WRD
P. 0. BOX 1397
ALBANY, NY 12201
(518)472-4574
12. Budget Period
03/01/931009/30/94
1 3. Scope of Work (Attach additional sheets, as needed)
See attached proposal. The attached proposal contains the scope of work for this agreement.
SIGNED ACCEPTANCE FOR THIS AGREEMENT MUST BE RETURNED
TO ADDRESS IN ITEM 29, PAGE 3 OF THIS EPA FORM
The EPA Grants Specialist for thislAG is Joseph Faria, (202) 260-8276
3.. by. 5, WWSP......
14. Statutory Authority for Both Transfer of Funds and Project Activities
ECONOMY ACT OF 1932 AS AMENDED
15. Other Agency Type
FEDERAL
FUNDS
PREVIOUS AMOUNT
AMOUNT THIS ACTION
AMENDED TOTAL
16. EPA Amount
51,500
17. EPA In-Kind Amount
0
18. Other Agency Amount
19. Other Agency In-Kind Amount
20. Total Project Cost
51.500
Fiscal Information
ogram Element
CC2A1E
FY
93
Appropriation
683/40107
Doc. Control No.
MW0108
Account Number
3CC226M014
Object Class
25.71
Obligation/Deoblig. Amt
51,500
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Part II • Approved Budget
Page 2 of 3
EPA IAG Identification Number
DW14936141-01-0
22. Budget Categories
Itemization of
This Action
Itemization of Total Project
Estimated Cost to Date
(a) Personnel
9,902
9,902
(b) Fringe Benefits
0
(c) Travel
1,600
1,600
(d) Equipment
(e) Supplies
750
750
(f) Procurement / Assistance
3,700
3,700
(g) Construction
0
(h) Other
6,450
6,450
(I) Total Direct Charges
22,402
22,402
(I) Indirect Costs: Rate
Base$
29,098
29,098
(K) Total:
(EPA Share:.
100.00 %) (Other Agency Share 0.00%)
51,500
51,500
23. Is Equipment authorized to be furnished by EPA or leased, purchased, or rented with EPA funds? I I
(Identify all equipment costing $1000 or more.) L~J
Yes
No
24. Are any of these funds being used on extramural agreements? (See Item 22f.)
Yes
D
No
Type of extramural agreement
Grant
Cooperative Agreement
Procurement (includes Small Purchase Order)
Contractor / Recipient Name (if known)
UNKNOWN AT THIS TIME
Total Extramural Amount under this Project
3,700
Percent Funded by EPA (if known)
100.00
Part ill • Funding Methods and Billing Instructions
25.
Funds-Out Agreement (Note: EPA Agency Location Code (ALC) - 68010727)
|X| Disbursement Agreement
|XJ Repayment Request for repayment of actual costs must be itemized on SF-1080 and submitted to the Financial Management
Office, Cincinnati, OH 45268:
I I Monthly |XI Quarterly I I Upon Completion of Work
Only available for use by Federal agencies on working capital fund or with appropriate justification of need for
I | Advance this type of payment method. Unexpended funds at completion of work will be returned to EPA. Quarterly cost
reports will be forwarded to the Financial Management Center, EPA, Cincinnati, OH 45268.
Used to transfer obllgational authority or transfer of function between Federal agencies. Must receive prior
D Allocation approval by the Office of the Comptroller, Budget Division, Budget Formulation and Control Branch, EPA Hdqtrs.
Transfer-Out Forward appropriate reports to the Financial Reports and Analysis Branch, Financial Management Division, PM-
226F.EPA, Washington, DC 20460.
26.
D
Funds-ln Agreement
I I Reimbursement Agreement
I I Allocation Transfer-In
II Repayment
| | Advance
Other Agency's IAG Identification Number
EPA Program Office Allowance Holder/Resp. Center No.
Other Agency's Billing Address (include ALC or Station Symbol Number)
Other Agency's Billing Instruction and Frequency
-------
Part IV - Acceptance Conditions
EPA IAG Identification Number
DW14936141-01-0
27 General Conditions
The other agency covenants and agrees that It will expeditiously Initiate and complete the project for which funds
have been awarded under this agreement.
28. Special Conditions (Attach additional shoots if needed)
EPA will only honor requests for payment up the amount specified for this project.
Any document produced under the terms of this agreement is subject to the review
policies of the EPA.
See attached indirect cost certification and DBE
Part V - Offer and Acceptance
Note: 1) For Funds-out actions, the agreement/amendment must be signed by the other agency official in duplicate
and one original returned to the Grants Administration Division for Headquarters agreements or to the
appropriate EPA Regional IAG administration office within 3 calendar weeks after receipt or within any
extension of time as may be granted by EPA. The agreement/amendment must be forwarded to the
address cited in Item 29 after acceptance signature.
Receipt of a written refusal or failure to return the properly executed document within the prescribed time
may result in the withdrawal of the offer by EPA. Any change to the agreement/amendment by the other
agency subsequent to the document being signed by the EPA Action Official, which the Action Official
determines to materially alter the agreement/amendment, shall void the agreement/amendment
2) For Funds-in actions, the other agency will Initiate the action and forward two original
agreements/amendments to the appropriate EPA program office for signature. The
agreements/amendments will then be forwarded to the appropriate EPA IAG administration office for
acceptance signature on behalf of the EPA. One original copy wfll be returned to the other agency after
acceptance.
EPA IAG Administration Office (for administrative assistance)
EPA Program Office (tor technical assistance)-
29 Organization/Address
Grants Information & Analysis Branch
Grants Admin. Div., U.S. EPA
401 M Street, S.W. (3903F)
Washington, DC 20460
30. Organization/Address
Corvallis Environmental Research Lab.
U.S. Environmental Protection Agency
200 S.W. 35th Street
Corvallis, OR 97333
Certification
All signers certify that the statements made on this form and all attachments thereto are true, accurate, and
complete. Signers acknowledge that any knowingly false or misleading statement may be punishable by fine or
imprisonment or both under applicable law.
Decision Official on Behalf ol the Environmental Protection Agency Program Office
31 Signature
Typed Name and Title
Thomas A. Murphy
Director, ERL-Corvallis
Date
Action Official on Behalf ot the Environmental Protection Agency
32 Signature
Typed Name and Tide
W. Scott McMoran, Chief
Grants Info. & Analysis Br. GAD
Date
Authorizing Official on Behalf ol the Other Agency
33 Signature
Typed Name and Title
L. Grady Moore, District Chief
Date
9/14/93
EPA Form 1610-1/ftieVT 10-88)
Page 3 of 5
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DW14936141-01-0
DBE Special Condition
EPA's policy requires at least 8% of its Federal funding for prime
and subcontracts be awarded to businesses or other organizations
owned or controlled by socially and economically disadvantaged
individuals.
As a recipient of monies under this IAG, the Department of the
Interior/U.S. Geological Survey must ensure to the fullest extend
possible that at least 8% of funds for prime or subcontracts and
subgrants for services are made available to businesses owned or
controlled by socially and economically disadvantage individuals,
women-owned businesses, and Historically Black Colleges and
Universities. (DBE)
The Department of the Interior/USGS must submit a report to EPA
showing the total extramural funds awarded and the amount and
percentage of extramural funds awarded to DBEs by November 15th of
current year. Reports should be submitted to:
Office of Small and Disadvantage
Business Utilization (A-149C)
U.S. Environmental Protection Agency
401 M street, S.W.
Washington, D.C. 20460
The Department of the Interior/U.S. Geological Survey certifies:
1) that any indirect costs included in billings to EPA represent,
in accordance with GAO principles, indirect costs that are funded
out of the Department of the Interior's currently available
appropriations and that bear a significant relationship to the
performing of the service or work, or 2) that statutory authority
exists for charging other than these costs of performance. If an
audit determines that any direct or indirect costs charged to EPA
are unallowable, EPA will be notified immediately following the
resolution of the audit and EPA will be credited for those costs.
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SUBJECT INDEX
-------
SUBJECT INDEX
-------
SUBJECT INDEX
(Numbers Refer to the Module and Page in a Module)
Acquisition vs Assistance
Award Official role - 1.5
Approval/Decision Official role - 1.4
Direct Benefit - 1.7; 8.11
EPA Order •-1.4; 1.12; Appendix B
Failure to comply - 1.13
GMO Role » 1.5
Principle Purpose --1.6-7
Support or Stimulation - 1.8
Administrative Requirements
Cooperative Agreements - 1.10-11; 2.8-9
Grants - 1.10-11; 2.8-9
Interagency Agreements - 8.11
Application Identification Number - 3.7
Application Package
Content -- 3.9; 4.4; 4.5-7; Appendix Q
GMO Responsibility - 3.7-8
PO Responsibility -3.7-8
Approval/Decision Official
Roles and Responsibilities --1.4
Assurances
Purpose - 3.24
Signatures - 3.24
-------
(Numbers Refer to the Module and Page in a Module)
Audits
Audit Officials -- 7.4
Audit Process - 7.5-6
Documentation -- 7.7
External
Single Audit Act -- 2.10; 7.2-3
Interaction With Auditors - 7.7-8
Internal - 7.2
Requests - 7.5-6
Automated Clearinghouse (ACH) - 5.7
Award Instrument
Assistance vs Acquisition - 1.2
Cooperative Agreement, definition - 1.10
Grant, definition - 1.10
Carryover of Unobligated Balances - 2.23; Appendix M
Certifications
Anti-lobbying - 3.29
Drug-free Workplace - 3.20
Procurement System - 3.29
Suspension and Debarment - 3.30
Changes
Informal Approval -- 5.11
Prior Written Approval - 5.9
All Recipients -- 5.9-10
State, Local, Tribal Governments -- 5.9-10
Universities - 5.9-10
Nonprofits - 5.9-10
-------
(Numbers Refer to the Module and Page in a Module)
Closeout - Appendix T
Initiating - 6.2; 6,6
Products/Reports
Peer Review ~ 6.8
Publications - 6.8
Property Disposition - 6.7
Repayment of Debts - 6.8
PO Roles and Responsibilities - 6.3; 6.10
GMO Roles and Responsibilities -- 6.11
FMO Roles and Responsibilities - 6.12
Recipient Roles and Responsibilities - 6.12
Timing - 6.4-5
Code of Federal Regulations
Force and Effect of Law -- 2.11
General Assistance Regulations
Nonprofits - 2.15
State, Local Governments, and Indian Tribes - 2.16
Universities - 2.15
Intergovernmental Review -- 2.13
Program Specific Regulations -- 2.19
Competition
Approval/Decision Official Responsibilities — 1.14
Requirements for - 1.14
SRO Responsibilities - 1.14
Conferences -- 1.9
Conditions
High Risk Applicants/Recipients - 4.9
Special Conditions - 4.9
Terms and Conditions -- 4.8
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(Numbers Refer to the Module and Page in a Module)
Conflicts of Interest
Deputy Ethics Officials - 1.15
EPA Employees - 1.15
Impartiality of Action --1.15
Preferential Treatment --1.15
Recipient Code of Conduct - 1.16
Recipient Decisions - 1.16
Cooperative Agreement --1.11
Cooperation Authorities -- 8.5
Cost Principles - 2.10
Allocable - 3.19
Allowable -- 3.18
Eligible - 3.18
Preaward -- 3.20-21
Reasonable -- 3.19
Cost Sharing
Federal vs Recipient Share -- 3.16-17
In-kind - 3.16
Debannent and Suspension -- 2.17; 3.30
Decision Memorandum
Content - 1.4; 8.12-13
Delegations of Authority - 2.3-4; Appendix F & G
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(Numbers Refer to the Module and Page in a Module)
Deviations
Approval/Disapproval Authority - 5.13-14
Content of Request - 5.13-14
Limitations - 5.13
Disadvantaged Business Utilization Plan--2.23-24; 8.11; Appendix N
Disputes
Disputable Activities - 5.15
Nondisputable Activities - 5.15
Economy Act - 8.4
Equipment - 3.22
Executive Orders - 2.5-7
Federal Grant and Cooperative Agreement Act - 1.2-3; Appendix A
Federal Statutes - 2.2; Appendix F
Freedom of Information Act - 3.8
Guidance, Program
Distribution - 3.2-3
National Program Manger - 3.2
Purpose -- 3.2
Regional - 3.2
Indian Tribes
Intergovernmental Reviews -- 2.12
Treatment as States - 2.25
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(Numbers Refer to the Module and Page in a Module)
Indirect Cost Rate Agreements - 3.14; 8.11
Interagency Agency Agreements
Authority -- 8.4-5; 8.7; 8.12
Decision Memorandum - 8.12-13
Federal lAGs » 8.1-2
Funds Out - 8.8; 8.11; 8.13
Funds In - 8.8; 8.11; 8.13
Guidance - 8.6
Intergovernmental Agreements -- Apendix W
International lAGs -- 8.3
Funds From Foreign Governments -- 8.3
Limits on Availability of Funds - 8.7
Memorandum of Understanding (MOU) - 8.2
Ordering Agency - 8.1
Payment/Billing
Advance - 8.10; 8.13
Reimbursement -- 8.10; 8.13
Requirements - 8.11
Servicing Agency - 8.1
Intergovernmental Cooperation Act - 8.5
Intergovernmental Review - 2.12; 2.14
International Agreements
Approvals -- 3.33; 8.3
Department of State Role -- 3.33; 8.3
Office of International Activities Role -- 3.33; 8.3
Minority Business Enterprise/Women Business Enterprise-Appendix R
EPA Plan » 2.6; 2.23; 8.11
Objectives - 2.23
-------
(Numbers Refer to the Module and Page in a Module)
Monitoring
On-site Reviews - 5.3
In-house Reviews — 5.3
Official Files
Grants Management Office -- 5.14; 8.14; Appendix S
Program Office - 8.14; Appendix S
OMB Circulars
Applicability - 2.9
Nonprofits
Administrative Requirements (A-110) -- 2.9
Cost Principles (A-122) -- 2.10
Audits (A-133) - 2.10
State, Local Governments, and Indian Tribes
Administrative Requirements (A-102) - 2.9
Cost Principles (A-87) - 2.10
Audits (A-128) - 2.10
Universities
Administrative Requirements (A-110) - 2.9
Cost Principles (A-21) - 2.10
Audits (A-133) - 2.10
Payment
Advance - 5.6-7
Reimbursement - 5.8
Peer and Publication Review - 6.8-9; Appendix V
Performance Based Assistance - 2.23; Appendix L
Pollution Prevention -- 2.24; Appendix P
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(Numbers Refer to the Module and Page in a Module)
Preapplication Assistance - 3.4-6
Principle Purpose
Grants vs Contracts - 1.3
Procurement
Certification Form (EPA Form 5700-48) - 3.29
MBE/WBE Requirements - 2.6; 2.23
Program Guidance
Annual Guidance - 3.2-3
Annual Planning Process - 3.2
Project Narrative/Workplan - 3.12; 3.25
Continuing Environmental Program Grants - 3.26
Negotiations - 3.25; 3.27-28
Purpose •- 3.25
Technical Review - 3.12; 3.25
Property
Acquisition - 3.23
Disposition - 6.3; 6.7
Intangible - 3.22
Personal - 3.22
Real - 3.22
Title - 3.23
Quality Assurance/Quality Control
Program Plan -- 3.31
Project Plan -- 3.31
Requirements - 3.32
8
-------
(Numbers Refer to the Module and Page in a Module)
Recipient Performance
Coordination - 5.17
Noncompliance - 5.17
Performance Based Assistance •• 5.17
Recycled Paper - 2.22
Reports
Responsibilities - 5.3-5
Requirements -• 5.3; 5.5
Reviews
Administrative -- 3.7
Budget
Categories -• 3.13-15
GMO Responsibilities - 3.12
PO Responsibilities - 3.12
Extramural (non-EPA) Reviews -- 3.8
Technical - 3.7-8; 5.3-4
Time Frames - 3.7-8
Roles and Responsibilities
Award Official - 4.10
Applicant » 3.37; 4.13
Financial Management Office - 3.37; 4.13; 5.22
Grants Management Offices - 3.36; 4.3; 4.10; 4.12; 5.20; 8.14
MBE/WBE Coordinators - 3.38; 4.13; 5.22
Office of General Counsel/Regional Counsel -- 3.37; 4.13; 5.22
Project/Program Offices --1.4; 3.34-35; 4.11; 5.18-19; 8.12-13
Recipient - 4.10; 4.13; 5.21
Senior Resource Official - 1.4; 4.2; 4.13
Solicitations (Research and Development) - 3.2-3
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(Numbers Refer to the Module and Page in a Module)
Statutory Authorities
40 CFR Part 29 - 2.12
40 CFR Part 30 - 2.15; Appendix D
40 CFR Part 31 - 2.16; Appendix E
40 CFR Part 32 -- 2.17
40 CFR Part 33 - 2.18; Appendix H
40 CFR Part 35 -- 2.19
40 CFR Part 40 -- 2.20; Appendix I
40 CFR Part 45 - 2.20; Appendix I
40 CFR Part 46 - 2.21; Appendix I
40 CFR Part 47 -- 2.21; Appendix I
Substantial Involvement - 1.11
Examples - 1.11
Timely Award - 2.24
Transferring an Award - 5.12
Travel -- 3.14; 8.7; 8.11
Workplan
Review -- 3.12
10
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GLOSSARY
-------
GLOSSARY
-------
GLOSSARY/DEFINITIONS
1. ACCRUED EXPENDITURES: THE CHARGES INCURRED BY THE
RECIPIENT DURING A GIVEN PERIOD REQUIRING THE PROVISION
OF FUNDS FOR (1) GOODS AND OTHER TANGIBLE PROPERTY
RECEIVED; (2) SERVICES PERFORMED BY EMPLOYEES,
CONTRACTORS, SUBRECIPIENTS, AND OTHER PAYEES, AND (3)
OTHER AMOUNTS BECOMING OWED UNDER PROGRAMS FOR WHICH
NO CURRENT SERVICES OR PERFORMANCE IS REQUIRED (SUCH AS
ANNUITIES, INSURANCE CLAIMS, AND OTHER BENEFIT PAYMENTS.
(A-102 & A-110)
2. ACCRUED INCOME: THE SUM OF: (1) EARNINGS DURING A GIVEN
PERIOD FROM SERVICES PERFORMED BY THE RECIPIENT AND
GOODS AND OTHER TANGIBLE PROPERTY DELIVERED TO
PURCHASERS, AND (2) AMOUNTS BECOMING OWED TO THE
RECIPIENT FOR WHICH NO CURRENT SERVICES OR PERFORMANCE
IS REQUIRED BY THE RECIPIENT. (A-102 & A-110)
3. ACQUISITION COST OF EQUIPMENT: THE NET INVOICE UNIT
PRICE OF THE EQUIPMENT, INCLUDING THE COST OF
MODIFICATIONS, ATTACHMENTS, ACCESSORIES, OR AUXILIARY
APPARATUS NECESSARY TO MAKE THE PROPERTY USABLE FOR THE
PURPOSE FOR WHICH IT WAS ACQUIRED. OTHER CHARGES SUCH
AS THE COST OF INSTALLATION, TRANSPORTATION, TAXES, DUTY
OR PROTECTIVE IN-TRANSIT INSURANCE, SHALL BE INCLUDED OR
EXCLUDED FROM THE UNIT ACQUISITION COST IN ACCORDANCE
WITH THE RECIPIENT'S REGULAR ACCOUNTING PRACTICES. (A-102
& A-110)
4. ADMINISTRATIVE REQUIREMENTS: THOSE MATTERS COMMON
TO GRANTS IN GENERAL, SUCH AS FINANCIAL MANAGEMENT, KINDS
AND FREQUENCY OF REPORTS, AND RETENTION OF RECORDS.
THESE ARE DISTINGUISHED FROM PROGRAMMATIC
REQUIREMENTS, WHICH CONCERN MATTERS THAT CAN BE
TREATED ONLY ON A PROGRAM-BY-PROGRAM OR GRANT-BY-GRANT
BASIS, SUCH AS KINDS OF ACTIVITIES THAT CAN BE SUPPORTED BY
GRANTS UNDER A PARTICULAR PROGRAM. (A-102)
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5. ADVANCE: A PAYMENT MADE BY TREASURY CHECK OR OTHER
APPROPRIATE PAYMENT MECHANISM TO A RECIPIENT UPON ITS
REQUEST EITHER BEFORE OUTLAYS ARE MADE BY THE RECIPIENT
OR THROUGH THE USE OF PREDETERMINED PAYMENT SCHEDULES.
(A-110)
6. ALLOCABLE COSTS: COSTS THAT ARE ALLOCABLE TO A
PARTICULAR COST OBJECTIVE TO THE EXTENT BENEFITS
RECEIVED BY SUCH OBJECTIVE. (A-87)
7. ALLOTMENT: AN AMOUNT REPRESENTING A STATE'S SHARE OF
FUNDS REQUESTED IN THE PRESIDENT'S BUDGET OR
APPROPRIATED BY CONGRESS FOR AN ENVIRONMENTAL PROGRAM,
AS EPA DETERMINES AFTER CONSIDERING ANY FACTORS
INDICATED BY 40 CFR PART 35--SUBPART A. THE ALLOTMENT IS
NOT AN ENTITLEMENT BUT RATHER THE OBJECTIVE BASIS FOR
DETERMINING THE RANGE FOR A STATE'S PLANNING TARGET. (40
CFR PART 35--SUBPART A)
8. ALLOWABLE COSTS: THOSE PROJECT COSTS THAT ARE:
ELIGIBLE, REASONABLE, NECESSARY, AND ALLOCABLE TO THE
PROJECT; PERMITTED BY THE APPROPRIATE FEDERAL COST
PRINCIPLES, AND APPROVED BY EPA IN THE ASSISTANCE
AGREEMENT. (40 CFR PART 30)
9. AMENDMENT: 1. FORMAL AMENDMENT: A WRITTEN
MODIFICATION OF AN ASSISTANCE AGREEMENT SIGNED BY BOTH
THE AWARD OFFICIAL AND THE AUTHORIZED REPRESENTATIVE OF
THE RECIPIENT. (ASSISTANCE ADMINISTRATION MANUAL)
2. INFORMAL AMENDMENT: PROPOSED PROJECT
CHANGE WHICH DOES NOT SUBSTANTIALLY ALTER THE OBJECTIVE
OR SCOPE OF THE PROJECT.
10. APPLICANT: ANY ENTITY THAT FILES AN APPLICATION OR
UNSOLICITED PROPOSAL FOR EPA FINANCIAL ASSISTANCE UNDER
40 CFR CHAPTER I--ENVIRONMENTAL PROTECTION AGENCY,
SUBCHAPTER A -- GENERAL. (40 CFR PART 30)
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11. APPROVAL MEMO: A MEMO ORIGINATED BY THE PROJECT
OFFICER AND CONCURRED IN BY THE IMMEDIATE SUPERVISOR
WHICH DENOTES WORKPLAN AND FEDERAL FUNDING APPROVAL.
(REGION 9)
12. APPROVAL OFFICIAL: AN EPA OFFICIAL DELEGATED THE
AUTHORITY TO APPROVE OR REJECT APPLICATIONS FOR
ASSISTANCE AND THE TECHNICAL/PROGRAMMATIC TERMS AND
CONDITIONS OF PROPOSED ASSISTANCE PROJECTS. (ASSISTANCE
ADMINISTRATION MANUAL)
13. ASSISTANCE AGREEMENT: THE LEGAL INSTRUMENT EPA USES
TO TRANSFER MONEY, PROPERTY, SERVICES, OR ANYTHING OF
VALUE TO A RECIPIENT TO ACCOMPLISH A PUBLIC PURPOSE. IT IS
EITHER A GRANT OR A COOPERATIVE AGREEMENT AND WILL
SPECIFY: BUDGET AND PROJECT PERIODS; THE FEDERAL SHARE OF
ELIGIBLE PROJECT COSTS; A DESCRIPTION OF THE WORK TO BE
ACCOMPLISHED, AND ANY TERMS AND CONDITIONS/SPECIAL
CONDITIONS. (40 CFR PART 30)
14. AUTOMATED CLEARING HOUSE (ACH): ELECTRONIC WIRE
TRANSFER SYSTEM TO PAY RECIPIENTS THROUGH THE FEDERAL
RESERVE SYSTEM AND THEIR LOCAL BANK. (REPLACED FORMER
LETTER OF CREDIT SYSTEM.)
(REGION 9)
15. AWARD: (SEE ALSO "ASSISTANCE AGREEMENT", "COOPERATIVE
AGREEMENT", "GRANT", "GRANT AGREEMENT') FINANCIAL
ASSISTANCE THAT PROVIDES SUPPORT OR STIMULATION TO
ACCOMPLISH A PUBLIC PURPOSE. AWARDS INCLUDE GRANTS AND
OTHER AGREEMENTS IN THE FORM OF MONEY OR PROPERTY IN
LIEU OF MONEY BY THE FEDERAL GOVERNMENT TO AN ELIGIBLE
RECIPIENT. THE TERM DOES NOT INCLUDE: TECHNICAL
ASSISTANCE WHICH PROVIDES SERVICES INSTEAD OF MONEY,
OTHER ASSISTANCE IN THE FORM OF LEANS, LOAN GUARANTEES,
INTEREST SUBSIDIES, OR INSURANCE; DIRECT PAYMENTS OF ANY
KIND TO INDIVIDUALS, AND CONTRACTS WHICH ARE REQUIRED TO
BE ENTERED INTO AND ADMINISTERED UNDER PROCUREMENT
LAWS AND REGULATIONS. (A-110)
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16. AWARD OFFICIAL: THE EPA OFFICIAL WITH THE AUTHORITY TO
EXECUTE ASSISTANCE AGREEMENTS AND TO TAKE OTHER ACTIONS
AUTHORIZED BY 40 CFR CHAPTER I, SUBCHAPTER A AND BY EPA
ORDERS. (40 CFR PART 30) (ASSISTANCE ADMINISTRATION MANUAL)
17. AWARDING AGENCY: (1) WITH RESPECT TO A GRANT, THE
FEDERAL AGENCY, AND (2) WITH RESPECT TO A SUBGRANT, THE
PARTY THAT AWARDED THE SUBGRANT. (A-102)
18. BUDGET PERIOD (SEE ALSO "FUNDING PERIOD"): THE LENGTH
OF TIME EPA SPECIFIES IN AN ASSISTANCE AGREEMENT DURING
WHICH THE RECIPIENT MAY EXPEND OR OBLIGATE FEDERAL
FUNDS. (40 CFR PART 30)
19. CASH CONTRIBUTIONS: 1. THE RECIPIENT'S CASH OUTLAY,
INCLUDING THE OUTLAY OF MONEY CONTRIBUTED TO THE
RECIPIENT OR SUBRECIPIENT BY OTHER PUBLIC AGENCIES AND
INSTITUTIONS, AND PRIVATE ORGANIZATIONS AND INDIVIDUALS
(I.E., THIRD PARTIES). WHEN AUTHORIZED BY FEDERAL
LEGISLATION, FEDERAL FUNDS RECEIVED FROM OTHER
ASSISTANCE AGREEMENTS MAY BE CONSIDERED AS RECIPIENT OR
SUBRECIPIENT CASH CONTRIBUTIONS. (A-102)
2. ACTUAL NON-FEDERAL DOLLARS THAT A RECIPIENT
EXPENDED FOR GOODS AND SERVICES AND REAL OR PERSONAL
PROPERTY USED TO SATISFY COST SHARING REQUIREMENTS. (SEE
IN-KIND CONTRIBUTIONS.) (ASSISTANCE ADMINISTRATION
MANUAL)
20. CLOSEOUT: 1. THE PROCESS BY WHICH A FEDERAL AWARDING
AGENCY DETERMINES THAT ALL APPLICABLE ADMINISTRATIVE
ACTIONS AND ALL REQUIRED WORK OF THE AWARD HAVE BEEN
COMPLETED BY THE RECIPIENT AND FEDERAL AWARDING AGENCY.
(A-110)
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2. THE FINAL EPA ACTIONS TO ASSURE SATISFACTORY
COMPLETION OF PROJECT WORK AND ADMINISTRATIVE
REQUIREMENTS: THE SUBMISSION OF ACCEPTABLE REQUIRED
FINAL REPORTS; FINANCIAL SETTLEMENT; THE RESOLUTION OF
ANY OUTSTANDING ISSUES UNDER AN ASSISTANCE AGREEMENT,
AND THE NOTIFICATION OF THE RECIPIENT. (ASSISTANCE
ADMINISTRATION MANUAL)
21. CLOSEOUT MEMO: THE PROJECT OFFICER'S MEMO WHICH
DOCUMENTS THEIR REVIEW OF THE RECIPIENT'S FINANCIAL
STATUS REPORT AGAINST THEIR PERFORMANCE; STATES THAT
PERFORMANCE HAS BEEN COMPLETED, AND IDENTIFIES THE
DISPOSITION OF ANY REMAINING FEDERAL FUNDS. (REGION 9)
22. COGNIZANT AGENCY: THE FEDERAL AGENCY WHICH, ON BEHALF
OF ALL FEDERAL AGENCIES, IS RESPONSIBLE FOR REVIEWING,
NEGOTIATING, AND APPROVING COST ALLOCATION PLANS OR
INDIRECT COST PROPOSALS DEVELOPED UNDER A-87. (A-87)
23. COMMITMENT: 1. THE OFFICIAL RESERVATION OF FUNDS AND
AUTHORIZATION TO INCUR OBLIGATIONS. (ASSISTANCE
ADMINISTRATION MANUAL)
2. A FORMAL ACTION TO RESERVE FUNDS FOR A SPECIFIC
PURPOSE IN THE FUTURE (E.G., A GRANT/COOPERATIVE
AGREEMENT). FOR FINANCIAL ASSISTANCE, THE COMMITMENT IS
REFLECTED BY A COMMITMENT NOTICE. (REGION 9)
24. CONTINUATION: AN EXTENSION OF AN ASSISTANCE AGREEMENT
FOR AN ADDITIONAL FUNDING/BUDGET PERIOD FOR A PROJECT
THE AGENCY INITIALLY AGREED TO FUND FOR A DEFINITE NUMBER
OF YEARS. (ASSISTANCE ADMINISTRATION MANUAL)
25. CONTINUATION AWARD: (SEE ALSO "RENEWAL") AN ASSISTANCE
AGREEMENT AFTER THE INITIAL AWARD, FOR A PROJECT WHICH
HAS MORE THAN ONE BUDGET PERIOD IN ITS APPROVED PROJECT
PERIOD, OR ANNUAL AWARDS, AFTER THE FIRST AWARD, TO STATE,
INTERSTATE, OR LOCAL AGENCIES FOR CONTINUING
ENVIRONMENTAL PROGRAMS. (40 CFR PART 30)
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26. CONTINUING ENVIRONMENTAL PROGRAM: A
STATE/INTERSTATE/LOCAL ENVIRONMENTAL AGENCY POLLUTION
CONTROL PROGRAM WHICH WILL NOT BE COMPLETED WITHIN A
DEFINABLE TIME PERIOD. (SEE 40 CFR PART 35-SUBPART A.)
27. CONTINUING RESOLUTION: LEGISLATION ENACTED BY
CONGRESS TO PROVIDE BUDGET AUTHORITY FOR FEDERAL
AGENCIES AND/OR SPECIFIC ACTIVITIES TO CONTINUE IN
OPERATION UNTIL THE REGULAR APPROPRIATIONS ARE ENACTED.
CONTINUING RESOLUTIONS ARE ENACTED WHEN ACTION ON
APPROPRIATIONS IS NOT COMPLETED BY THE BEGINNING OF A
FISCAL YEAR. ("PRINCIPLES OF FEDERAL APPROPRIATIONS LAW")
28. CONTRACT: (EXCEPT AS USED IN THE DEFINITIONS FOR GRANT
AND SUBGRANT AND EXCEPT WHERE QUALIFIED BY FEDERAL) A
PROCUREMENT CONTRACT UNDER A GRANT OR SUBGRANT, AND A
PROCUREMENT SUBCONTRACT UNDER A CONTRACT. (A-102)
29. CONTRACTOR: ANY PARTY TO WHOM A RECIPIENT AWARDS A
SUBAGREEMENT. (40 CFR PART 30)
30. COOPERATIVE AGREEMENT: (SEE ALSO "ASSISTANCE
AGREEMENT", "AWARD"): AN ASSISTANCE AGREEMENT IN WHICH
SUBSTANTIAL EPA INVOLVEMENT IS ANTICIPATED DURING THE
PERFORMANCE OF THE PROJECT (DOES NOT INCLUDE
FELLOWSHIPS). (40 CFR PART 30)
31. COST: COST AS DETERMINED ON A CASH, ACCRUAL, OR OTHER
BASIS ACCEPTABLE TO THE FEDERAL AWARDING OR COGNIZANT
AGENCY. IT DOES NOT INCLUDE TRANSFERS TO A GENERAL OR
SIMILAR FUND. (A-87)
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32. COST ALLOCATION PLAN (CAP): ANY OF THE FOLLOWING --
A. "CENTRAL SERVICE COST ALLOCATION PLAN" - THE
DOCUMENTATION IDENTIFYING, ACCUMULATING, AND ALLOCATING
OR BILLING THE ALLOWABLE COSTS OF SERVICES PROVIDED BY A
GOVERNMENTAL UNIT ON A CENTRALIZED BASIS TO ITS
DEPARTMENTS/AGENCIES AS DESCRIBED IN ATTACHMENT C OF
OMB CIRCULAR A-87.
B. "PUBLIC ASSISTANCE COST ALLOCATION PLAN" - THE
DOCUMENTATION IDENTIFYING, ACCUMULATING, AND
DISTRIBUTING THE ALLOWABLE COSTS OF SERVICES PROVIDED BY
A PUBLIC ASSISTANCE AGENCY/DEPARTMENT IN SUPPORT OF ALL
FEDERAL FINANCIAL ASSISTANCE PROGRAMS ADMINISTERED OR
SUPERVISED BY THAT AGENCY/DEPARTMENT AS DESCRIBED IN
ATTACHMENT D OF OMB CIRCULAR A-87.
C."INDIRECT COST RATE PROPOSAL" - THE DOCUMENTATION
PREPARED BY A GOVERNMENTAL UNIT OR SUBDIVISION THEREOF
TO SUBSTANTIATE ITS REQUEST FOR THE ESTABLISHMENT OF AN
INDIRECT COST RATE AS DESCRIBED IN ATTACHMENT E OF OMB
CIRCULAR A-87. (A-87)
33. COST OBJECTIVE: A FUNCTION, ORGANIZATIONAL SUBDIVISION,
CONTRACT, GRANT, OR OTHER ACTIVITY FOR WHICH COST DATA
ARE NEEDED AND FOR WHICH PROVISION IS MADE TO
ACCUMULATE THOSE COSTS. (A-87)
34. COST SHARING: (SEE ALSO "MATCHING FUNDS") THE PORTION
OF ALLOWABLE PROJECT COSTS THAT A RECIPIENT CONTRIBUTES
TOWARD COMPLETING ITS PROJECT (I.E., NON-FEDERAL SHARE,
MATCHING SHARE). (40 CFR PART 30)
35. COST-TYPE CONTRACT: A CON TRACT OR SUBCONTRACT UNDER
A GRANT IN WHICH THE CONTRACTOR OR SUBCONTRACTOR IS PAID
ON THE BASIS OF THE COSTS IT INCURS, WITH OR WITHOUT A FEE.
(A-102)
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36. DATE OF COMPLETION: THE DATE ON WHICH ALL WORK UNDER
AN AWARD IS COMPLETED OR THE DATE ON THE AWARD
DOCUMENT, OR ANY SUPPLEMENT OR AMENDMENT THERETO, ON
WHICH FEDERAL SPONSORSHIP ENDS. (A-110)
37. DECISION OFFICIAL: (SEE "APPROVAL OFFICIAL")
38. DEVIATION: WRITTEN APPROVAL FROM THE DIRECTOR, GRANTS
ADMINISTRATION DIVISION FOR EXCEPTION(S) FROM FINANCIAL
ASSISTANCE REGULATIONS NOT BASED ON STATUTORY OR
EXECUTIVE ORDER REQUIREMENTS. (GPPB)
39. DISALLOWED COSTS: THOSE CHARGES TO AN AWARD THAT THE
FEDERAL AWARDING AGENCY DETERMINES TO BE UNALLOWABLE,
IN ACCORDANCE WITH THE APPLICABLE FEDERAL COST PRINCIPLES
OR OTHER TERMS AND CONDITIONS CONTAINED IN THE AWARD. (A-
110)
40. EQUIPMENT: TANGIBLE, NONEXPENDABLE, PERSONAL
PROPERTY INCLUDING EXEMPT PROPERTY CHARGED DIRECTLY TO
THE AWARD HAVING A USEFUL LIFE OF MORE THAN ONE YEAR AND
AN ACQUISITION COST OF $5,000 OR MORE PER UNIT. HOWEVER,
CONSISTENT WITH RECIPIENT POLICY, LOWER LIMITS MAY BE
ESTABLISHED. A RECIPIENT MAY USE ITS OWN DEFINITION OF
EQUIPMENT PROVIDED THAT SUCH DEFINITION WOULD AT LEAST
INCLUDE ALL EQUIPMENT DEFINED ABOVE. (A-102 & A-110)
41. ENVIRONMENTALLY RELATED MEASUREMENTS: ANY DATA
COLLECTION ACTIVITY OR INVESTIGATION INVOLVING THE
ASSESSMENT OF CHEMICAL, PHYSICAL, OR BIOLOGICAL FACTORS
IN THE ENVIRONMENT WHICH AFFECT HUMAN HEALTH OR THE
QUALITY OF LIFE. (40 CFR PART 30)
42. EXCESS PROPERTY: PROPERTY UNDER THE CONTROL OF ANY
FEDERAL AWARDING AGENCY THAT, AS DETERMINED BY THE HEAD
THEREOF, IS NO LONGER REQUIRED FOR ITS NEEDS OR THE
DISCHARGE OF ITS RESPONSIBILITIES. (A-110)
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43. EXEMPT PROPERTY: TANGIBLE PERSONAL PROPERTY ACQUIRED
IN WHOLE OR IN PART WITH FEDERAL FUNDS, WHERE THE
FEDERAL AWARDING AGENCY HAS STATUTORY AUTHORITY TO VEST
TITLE IN THE RECIPIENT WITHOUT FURTHER OBLIGATION TO THE
FEDERAL GOVERNMENT. AN EXAMPLE OF EXEMPT PROPERTY
AUTHORITY IS CONTAINED IN THE FEDERAL GRANT AND
COOPERATIVE AGREEMENT ACT (31 U.S.C. 6306) FOR PROPERTY
ACQUIRED UNDER AN AWARD TO CONDUCT BASIC OR APPLIED
RESEARCH BY A NON-PROFIT INSTITUTION OF HIGHER EDUCATION
OR NON-PROFIT ORGANIZATION WHOSE PRINCIPAL PURPOSE IS
CONDUCTING SCIENTIFIC RESEARCH. (A-110)
44. EXPENDITURE REPORT: (1) FOR NONCONSTRUCTION GRANTS,
THE SF-269 "FINANCIAL STATUS REPORT": (OR OTHER EQUIVALENT
REPORT); (2) FOR CONSTRUCTION GRANTS, THE SF-271 "OUTLAY
REPORT AND REQUEST FOR REIMBURSEMENT" (OR OTHER
EQUIVALENT REPORT). (A-102)
45. FEDERAL AWARDING AGENCY: THE FEDERAL AGENCY THAT
PROVIDES AN AWARD TO THE RECIPIENT. (A-110)
46. FEDERAL FUNDS AUTHORIZED: THE TOTAL AMOUNT OF
FEDERAL FUNDS OBLIGATED BY THE FEDERAL GOVERNMENT FOR
USE BY THE RECIPIENT. THIS AMOUNT MAY INCLUDE ANY
AUTHORIZED CARRYOVER OF UNOBLIGATED FUNDS FROM PRIOR
FUNDING PERIODS WHEN PERMITTED BY AGENCY REGULATIONS OR
AGENCY IMPLEMENTING INSTRUCTIONS. (A-110)
47. FEDERAL SHARE OF REAL PROPERTY, EQUIPMENT, OR SUPPLIES:
THAT PERCENTAGE OF THE PROPERTY'S ACQUISITION COSTS AND
ANY IMPROVEMENT EXPENDITURES PAID WITH FEDERAL FUNDS. (A-
110)
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48. FEDERALLY RECOGNIZED INDIAN TRIBAL GOVERNMENT: THE
GOVERNING BODY OR A GOVERNMENTAL AGENCY OF ANY INDIAN
TRIBE, BAND, NATIONS, OR OTHER ORGANIZED GROUP OR
COMMUNITY (INCLUDING ANY NATIVE VILLAGE AS DEFINED IN
SECTION 3 OF THE ALASKA NATIVE CLAIMS SETTLEMENT ACT, 85
STAT 688) CERTIFIED BY THE SECRETARY OF THE INTERIOR AS
ELIGIBLE FOR THE SPECIAL PROGRAMS AND SERVICES PROVIDED
BY HIM THROUGH THE BUREAU OF INDIAN AFFAIRS. (A-87 & A-102)
49. FINANCIAL STATUS REPORT (FSR): A STANDARD,
GOVERNMENTWIDE REPORT RECIPIENTS MUST SUBMIT TO THE
FEDERAL FUNDING AGENCY THAT IDENTIFIES THE STATUS OF
FUNDS FOR A SPECIFIC GRANT OR COOPERATIVE AGREEMENT. (40
CFR PART 31)
50. FUNDING PERIOD (SEE ALSO "BUDGET PERIOD"): THE PERIOD OF
TIME WHEN FEDERAL FUNDING IS AVAILABLE FOR OBLIGATION BY
THE RECIPIENT. (A-110)
51. GOVERNMENT: A STATE OR LOCAL GOVERNMENT OR A
FEDERALLY RECOGNIZED INDIAN TRIBAL GOVERNMENT. (A-102)
52. GRANT (SEE ALSO "ASSISTANCE AGREEMENT", "AWARD",
"COOPERATIVE AGREEMENT", "GRANT AGREEMENT"): AN AWARD OF
FINANCIAL ASSISTANCE, INCLUDING COOPERATIVE AGREEMENTS,
IN THE FORM OF MONEY, OR PROPERTY IN LIEU OF MONEY, BY THE
FEDERAL GOVERNMENT TO AN ELIGIBLE GRANTEE. THE TERM
DOES NOT INCLUDE TECHNICAL ASSISTANCE WHICH PROVIDES
SERVICES INSTEAD OF MONEY, OR OTHER ASSISTANCE IN THE
FORM OF REVENUE SHARING, LOANS, LOAN GUARANTEES, INTEREST
SUBSIDIES, INSURANCE, OR DIRECT APPROPRIATIONS. ALSO, THE
TERM DOES NOT INCLUDE ASSISTANCE, SUCH AS A FELLOWSHIP OR
OTHER LUMP SUM AWARD, WHICH THE GRANTEE IS NOT REQUIRED
TO ACCOUNT FOR. (A-102)
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53. GRANT AGREEMENT: (SEE ALSO "ASSISTANCE AGREEMENT1) AN
ASSISTANCE AGREEMENT THAT DOES NOT SUBSTANTIALLY INVOLVE
EPA IN THE PROJECT AND WHERE THE RECIPIENT HAS THE
AUTHORITY AND CAPABILITY TO COMPLETE ALL ELEMENTS OF THE
PROGRAM (DOES NOT INCLUDE FELLOWSHIPS). (40 CFR PART 30)
54. GRANT SPECIALIST: THE EPA OFFICIAL DESIGNATED IN THE
ASSISTANCE AGREEMENT AS EPA's ADMINISTRATIVE CONTACT WITH
THE RECIPIENT. THE GRANT SPECIALIST PROVIDES
ADMINISTRATIVE GUIDANCE TO RECIPIENTS AND PROJECT
OFFICERS; REVIEWS AND APPROVES THE ADMINISTRATIVE PORTION
OF THE APPLICATION; PREPARES THE ASSISTANCE AGREEMENT;
EVALUATES EFFECTIVENESS/COMPLIANCE WITH ADMINISTRATIVE
CONDITIONS, AND CLOSES OUT ASSISTANCE AGREEMENTS.
55. GRANTEE (SEE ALSO "RECIPIENT"): THE GOVERNMENT TO
WHICH A GRANT IS AWARDED AND WHICH IS ACCOUNTABLE FOR
THE USE OF THE FUNDS PROVIDED. THE GRANTEE IS THE ENTIRE
LEGAL ENTITY EVEN IF ONLY A PARTICULAR COMPONENT OF THE
ENTITY IS DESIGNATED IN THE GRANT AWARD DOCUMENT. (OMB
CIRCULAR A-102)
56. INDIRECT COSTS: COSTS (A) INCURRED FOR A COMMON OR
JOINT PURPOSE BENEFITING MORE THAN ONE COST OBJECTIVE
AND (B) NOT READILY ASSIGNABLE TO THE COST OBJECTIVES
SPECIFICALLY BENEFITTED WITHOUT EFFORT DISPROPORTIONATE
TO THE RESULTS ACHIEVED. (A-87:PROPOSED REVISION 8/19/93)
57. INDIRECT COST RATE: A DEVICE FOR DETERMINING IN A
REASONABLE MANNER THE PROPORTION OF INDIRECT COSTS EACH
PROGRAM SHOULD BEAR. IT IS THE RATIO (EXPRESSED AS A
PERCENTAGE) OF THE INDIRECT COSTS TO A DIRECT COST BASE.
(A-87:PROPOSED REVISION 8/19/93)
58. INDIRECT COST RATE AGREEMENT: AN AGREEMENT BETWEEN
THE RECIPIENT AND THE COGNIZANT FEDERAL AGENCY WHICH
IDENTIFIES THE BASIS FOR THE INDIRECT COST RATE, USUALLY
SUBMITTED ANNUALLY. (REGION 9)
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59. INDIRECT COST RATE PROPOSAL: THE DOCUMENTATION
PREPARED BY A GOVERNMENTAL UNIT OR SUBDIVISION THEREOF
TO SUBSTANTIATE ITS REQUEST FOR THE ESTABLISHMENT OF AN
INDIRECT COST RATE AS DESCRIBED IN ATTACHMENT E OF OMB
CIRCULAR A-87. (OMB CIRCULAR A-87)
60. IN-KIND CONTRIBUTION: 1. THE VALUE OF A NON-CASH
CONTRIBUTION TO MEET A RECIPIENT'S COST SHARING
REQUIREMENTS. AN IN-KIND CONTRIBUTION MAY CONSIST OF
CHARGES FOR REAL PROPERTY AND EQUIPMENT OR THE VALUE OF
GOODS AND SERVICES DIRECTLY BENEFITING THE EPA FUNDED
PROJECT. (40CFRPART30) NOTE: THE ASSISTANCE AMOUNT MAY
ALSO INCLUDE AN EPA IN-KIND CONTRIBUTION. (SEE "COST
SHARING" AND "CASH CONTRIBUTIONS.") (ASSISTANCE
ADMINISTRATION MANUAL)
61. INTEGRATED FINANCIAL MANAGEMENT SYSTEM (IFMS): EPA'S
OFFICIAL AUTOMATED ACCOUNTING SYSTEM.
62. INTERAGENCY/INTERGOVERNMENTAL
AGREEMENT/INTERNATIONAL AGREEMENT (IAG):(1) A WRITTEN
AGREEMENT BETWEEN FEDERAL AGENCIES UNDER WHICH GOODS
AND SERVICES ARE PROVIDED IN EXCHANGE FOR FUNDS, OR
WHERE SERVICES ARE PROVIDED WITHOUT PAYMENT.
(2) A WRITTEN AGREEMENT BETWEEN A FEDERAL AGENCY AND
A STATE OR LOCAL GOVERNMENT UNDER WHICH THE STATE OR
LOCAL GOVERNMENT REIMBURSES THE FEDERAL AGENCY FOR THE
COSTS OF PROVIDING A SPECIFIC TECHNICAL SERVICE, E.G.,
STATISTICAL STUDIES AND COMPILATIONS, TECHNICAL TESTS AND
EVALUATIONS, TRAINING, SURVEYS, REPORTS, DOCUMENTS, AND
DATA.
(3) A WRITTEN AGREEMENT BETWEEN A FEDERAL AGENCY
AND A FOREIGN GOVERNMENT UNDER WHICH WORK WILL BE
CONDUCTED FOR, OR SERVICES PROVIDED TO, A FOREIGN
GOVERNMENT OR INTERNATIONAL ORGANIZATION.
(HEADQUARTERS ~ GIAB)
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63. INTANGIBLE PROPERTY AND DEBT INSTRUMENTS: MEANS BUT
IS NOT LIMITED TO TRADEMARKS, COPYRIGHT, PATENTS AND
PATENT APPLICATIONS AND SUCH PROPERTY AS LOANS, NOTES AND
OTHER DEBT INSTRUMENTS, LEASE AGREEMENTS, STOCK AND
OTHER INSTRUMENTS OF PROPERTY OWNERSHIP, WHETHER
CONSIDERED TANGIBLE OR INTANGIBLE. (OMB CIRCULAR A-110)
64. LOCAL GOVERNMENT: A COUNTY, MUNICIPALITY, CITY, TOWN,
TOWNSHIP, LOCAL PUBLIC AUTHORITY (INCLUDING ANY PUBLIC
AND INDIAN HOUSING AGENCY UNDER THE UNITED STATES
HOUSING ACT OF 1937) SCHOOL DISTRICT, SPECIAL DISTRICT,
INTRASTATE DISTRICT, COUNCIL OF GOVERNMENTS (WHETHER OR
NOT INCORPORATED AS A NONPROFIT CORPORATION UNDER STATE
LAW), ANY OTHER REGIONAL OR INTERSTATE GOVERNMENT
ENTITY, OR ANY AGENCY OR INSTRUMENTALITY OF A LOCAL
GOVERNMENT. (OMB CIRCULARS A-87 & A-102)
65. MAINTENANCE OF EFFORT: A REQUIREMENT CONTAINED IN
CERTAIN LEGISLATION OR REGULATIONS THAT A RECIPIENT MUST
MAINTAIN/CONTRIBUTE A SPECIFIED LEVEL OF FINANCIAL EFFORT
IN A SPECIFIED AREA IN ORDER TO RECEIVE FEDERAL ASSISTANCE
FUNDS, WHICH ENSURES THAT THOSE FEDERAL FUNDS ARE USED
TO SUPPLEMENT, BUT NOT SUPPLANT, EXPENDITURES OF THE
RECIPIENT'S FUNDS. (ASSISTANCE ADMINISTRATION MANUAL)
66. MATCHING FUNDS: (SEE ALSO "COST SHARING") THE PORTION
OF ALLOWABLE PROJECT COSTS A RECIPIENT CONTRIBUTES TO A
FEDERALLY FUNDED PROJECT (SOMETIMES DETERMINED BY
STATUTE). THE MATCH MAY INCLUDE IN-KIND AS WELL AS CASH
CONTRIBUTIONS. (REGION 9)
67. NEGOTIATION: THE PROCESS OF GIVE AND TAKE BY ASSISTANCE
PROJECT OFFICERS AND APPLICANTS TO AGREE ON WORKPLANS
AND FUNDS AVAILABLE TO CARRY OUT THE WORKPLAN ACTIVITIES.
(REGION 9)
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68. NONEXPENDABLE PERSONAL PROPERTY: PERSONAL PROPERTY
WITH A USEFUL LIFE OF AT LEAST TWO YEARS AND AN
ACQUISITION COST OF $500 OR MORE. (40 CFR PART 30 &
ASSISTANCE ADMINISTRATION MANUAL)
69. OBLIGATIONS: THE AMOUNTS OF ORDERS PLACED, CONTRACTS
AND GRANTS/SUBGRANTS AWARDED, GOODS AND SERVICES
RECEIVED AND SIMILAR TRANSACTIONS DURING A GIVEN PERIOD
THAT WILL REQUIRE PAYMENT BY THE GRANTEE/RECIPIENT
DURING THE SAME OR A FUTURE PERIOD. (OMB CIRCULARS A-102
& A-110)
70. OFFICIAL FILE: 1. THE ADMINISTRATIVE FILE FOR EACH
ASSISTANCE AGREEMENT (OR EACH APPLICATION OR UNSOLICITED
PROPOSAL) THAT IS ESTABLISHED AND MAINTAINED BY THE
APPROPRIATE GRANTS MANAGEMENT OFFICE AND/OR STATE
OFFICE WHEN PROVIDED FOR UNDER A DELEGATION AGREEMENT.
(THE OFFICIAL TECHNICAL FILE AND THE OFFICIAL FINANCIAL
MANAGEMENT FILE BOTH COMPLEMENT THE OFFICIAL
ADMINISTRATIVE FILE.)
(ASSISTANCE ADMINISTRATION MANUAL)
71. OMB: THE U.S. OFFICE OF MANAGEMENT AND BUDGET. (OMB
CIRCULAR A-102)
72. OUTLAYS OR EXPENDITURES: CHARGES MADE TO THE PROJECT
OR PROGRAM. THEY MAY BE REPORTED ON A CASH OR ACCRUAL
BASIS. FOR REPORTS PREPARED ON A CASH BASIS, OUTLAYS ARE
THE SUM OF ACTUAL CASH DISBURSEMENTS FOR DIRECT CHARGES
FOR GOODS AND SERVICES, THE AMOUNT OF INDIRECT EXPENSE
INCURRED [CHARGED], THE VALUE OF [THIRD-PARTY] IN-KIND
CONTRIBUTIONS APPLIED, AND THE AMOUNT OF CASH ADVANCES
AND PAYMENTS MADE TO CONTRACTORS AND SUBGRANTEES
[SUBRECIPIENTS]. FOR REPORTS PREPARED ON AN ACCRUED
EXPENDITURE [ACCRUAL] BASIS, OUTLAYS ARE THE SUM OF
ACTUAL CASH DISBURSEMENTS [FOR GOODS AND SERVICES], THE
AMOUNT OF INDIRECT EXPENSE INCURRED, THE VALUE OF [THIRD-
PARTY] IN-KIND CONTRIBUTIONS APPLIED, AND THE NEW [NET]
INCREASE (OR DECREASE) IN THE AMOUNTS OWED BY THE
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GRANTEE FOR GOODS AND OTHER PROPERTY RECEIVED, FOR
SERVICES PERFORMED BY EMPLOYEES, CONTRACTORS,
SUBGRANTEES/SUBRECIPIENTS, SUBCONTRACTORS, AND OTHER
PAYEES, AND OTHER AMOUNTS BECOMING OWED UNDER
PROGRAMS FOR WHICH NO CURRENT SERVICES OR PERFORMANCE
ARE REQUIRED, SUCH AS ANNUITIES, INSURANCE CLAIMS, AND
OTHER BENEFIT PAYMENTS. (A COMBINATION OF OMB CIRCULARS
A-102 & A-110; 40 CFR PART 35)
73. OUTPUT: AN ACTIVITY OR PRODUCT WHICH THE APPLICANT
AGREES TO COMPLETE DURING THE BUDGET PERIOD.
74. PERCENTAGE OF COMPLETION METHOD: A SYSTEM UNDER
WHICH PAYMENTS ARE MADE FOR CONSTRUCTION WORK
ACCORDING TO THE PERCENTAGE OF COMPLETION OF THE WORK,
RATHER THAN TO THE GRANTEE'S/RECIPIENT'S COST INCURRED.
(OMB CIRCULAR A-102)
75. PERSONAL PROPERTY: 1. PROPERTY OF ANY KIND EXCEPT REAL
PROPERTY. IT MAY BE TANGIBLE, HAVING PHYSICAL EXISTENCE,
OR INTANGIBLE, HAVING NO PHYSICAL EXISTENCE, SUCH AS
COPYRIGHTS, PATENTS, OR SECURITIES. (OMB CIRCULAR A-110)
2. PROPERTY OTHER THAN REAL PROPERTY. IT MAY BE
TANGIBLE (HAVING PHYSICAL EXISTENCE), SUCH AS EQUIPMENT
AND SUPPLIES, OR INTANGIBLE (HAVING NO PHYSICAL EXISTENCE),
SUCH AS PATENTS, INVENTIONS, AND COPYRIGHTS. (40 CFR PART
30 & ASSISTANCE ADMINISTRATION MANUAL)
76. PLANNING TARGET: THE AMOUNT OF FINANCIAL ASSISTANCE
WHICH THE REGIONAL ADMINISTRATOR SUGGESTS THAN AN
APPLICANT FOR CONTINUING ENVIRONMENTAL PROGRAM SUPPORT
(STATE, INTERSTATE OR LOCAL AGENCY) CONSIDER IN
DEVELOPING ITS APPLICATION AND WORK PROGRAM. (ASSISTANCE
ADMINISTRATION MANUAL)
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77. PRICE ANALYSIS: THE PROCESS OF EVALUATING A PROSPECTIVE
PRICE WITHOUT REGARD TO THE CONTRACTOR'S SEPARATE COST
ELEMENTS AND PROPOSED PROFIT. PRICE ANALYSIS DETERMINES
THE REASONABLENESS OF THE PROPOSED SUBAGREEMENT PRICE
BASED ON ADEQUATE PRICE COMPETITION, PREVIOUS EXPERIENCE
WITH SIMILAR WORK, ESTABLISHED CATALOG OR MARKET PRICE,
LAW, OR REGULATION. (ASSISTANCE ADMINISTRATION MANUAL)
78. PRINCIPAL INVESTIGATOR: (SEE "PROJECT MANAGER")
79. PRIOR APPROVAL: DOCUMENTATION/WRITTEN APPROVAL BY AN
AUTHORIZED OFFICIAL EVIDENCING CONSENT PRIOR TO
INCURRING SPECIFIC COST. (COMBINATION OF OMB CIRCULARS A-
102 & A-110)
80. PROFIT: THE NET PROCEEDS OBTAINED BY DEDUCTING ALL
ALLOWABLE COSTS (DIRECT AND INDIRECT) FROM THE PRICE.
(BECAUSE THIS DEFINITION OF PROFIT IS BASED ON APPLICABLE
FEDERAL COST PRINCIPLES, IT MAY VARY FROM MANY FIRMS'
DEFINITION OF PROFIT, AND MAY CORRESPOND TO THOSE FIRMS'
DEFINITION OF "FEE".) (40 CFR PART 33)
81. PROGRAM ELEMENT: ONE OF THE MAJOR GROUPINGS OF
OUTPUTS OF A CONTINUING ENVIRONMENTAL PROGRAM (E.G.,
ADMINISTRATION, ENFORCEMENT, MONITORING). (ASSISTANCE
ADMINISTRATION MANUAL)
82. PROGRAM INCOME: GROSS INCOME EARNED BY THE RECIPIENT
THAT IS DIRECTLY GENERATED BY A SUPPORTED ACTIVITY OR
EARNED AS A RESULT OF THE AWARD (SEE EXCLUSIONS IN
PARAGRAPHS .24(e) AND (h) OF OMB CIRCULAR A-110).
PROGRAM INCOME INCLUDES, BUT IS NOT LIMITED TO, INCOME
FROM FEES FOR SERVICES PERFORMED, THE USE OR RENTAL OF
REAL OR PERSONAL PROPERTY ACQUIRED UNDER FEDERALLY-
FUNDED PROJECTS, THE SALE OF COMMODITIES OR ITEMS
FABRICATED UNDER AN AWARD, LICENSE FEES AND ROYALTIES ON
PATENTS AND COPYRIGHTS, AND INTEREST ON LOANS MADE WITH
AWARD FUNDS. INTEREST EARNED ON ADVANCES OF FEDERAL
FUNDS IS NOT PROGRAM INCOME. EXCEPT AS OTHERWISE
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PROVIDED IN FEDERAL AWARDING AGENCY REGULATIONS OR THE
TERMS AND CONDITIONS OF THE AWARD, PROGRAM INCOME DOES
NOT INCLUDE THE RECEIPT OF PRINCIPAL ON LOANS, REBATES,
CREDITS, DISCOUNTS, ETC., OR INTEREST EARNED ON ANY OF
THEM. (OMB CIRCULAR A-110)
2. GROSS INCOME THE RECIPIENT EARNS DURING ITS
PROJECT PERIOD FROM CHARGES FOR THE PROJECT. THIS MAY
INCLUDE INCOME FROM SERVICE FEES, SALE OF COMMODITIES,
TRADE-IN ALLOWANCES, OR USAGE OR RENTAL FEES. FEES FROM
ROYALTIES ARE PROGRAM INCOME ONLY IF THE ASSISTANCE
AGREEMENT SO STATES. REVENUE GENERATED UNDER THE
GOVERNING POWERS OF A STATE OR LOCAL GOVERNMENT WHICH
COULD HAVE BEEN GENERATED WITHOUT AN AWARD IS NOT
CONSIDERED PROGRAM INCOME. SUCH REVENUES INCLUDE FINES
OR PENALTIES LEVIED UNDER JUDICIAL OR PENAL POWER AND
USED AS A MEANS TO ENFORCE LAWS. (REVENUE FROM
WASTEWATER TREATMENT CONSTRUCTION GRANT PROJECTS
UNDER TITLE II OF THE CLEAN WATER ACT, AS AMENDED, IS NOT
PROGRAM INCOME. IT MUST BE USED FOR OPERATION AND
MAINTENANCE COSTS OF THE RECIPIENT'S WASTEWATER
FACILITIES.) (ASSISTANCE ADMINISTRATION MANUAL)
83. PROJECT COSTS: ALL ALLOWABLE COSTS, AS SET FORTH IN THE
APPLICABLE FEDERAL COST PRINCIPLES, INCURRED BY A
RECIPIENT AND THE VALUE OF THE CONTRIBUTIONS MADE BY
THIRD PARTIES IN ACCOMPLISHING THE OBJECTIVES OF THE
AWARD DURING THE PROJECT PERIOD. (OMB CIRCULAR A-110)
84. PROJECT MANAGER (SEE ALSO "PRINCIPAL INVESTIGATOR"):
THE RESEARCHER, BUSINESS OFFICER, OR OTHER PERSON
AUTHORIZED AND DESIGNATED BY THE RECIPIENT TO SERVE AS ITS
PRINCIPAL CONTACT WITH EPA.
85. PROJECT NARRATIVE: (SEE "WORKPLAN/WORKPROGRAM")
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86. PROJECT OFFICER: THE EPA OFFICIAL DESIGNATED IN THE
ASSISTANCE AGREEMENT AS EPA'S PROGRAM CONTACT WITH THE
RECIPIENT. PROJECT OFFICERS ARE RESPONSIBLE FOR
MONITORING THE PROJECT. (40 CFR PART 30 & ASSISTANCE
ADMINISTRATION MANUAL)
87. PROJECT PERIOD: l.THE PERIOD ESTABLISHED IN THE AWARD
DOCUMENT DURING WHICH FEDERAL SPONSORSHIP BEGINS AND
ENDS. (OMB CIRCULAR A-110)
2. THE LENGTH OF TIME EPA SPECIFIES IN THE ASSISTANCE
AGREEMENT FOR COMPLETION OF ALL PROJECT WORK. IT MAY BE
COMPOSED OF MORE THAN ONE BUDGET PERIOD. (40 CFR PART 30
& ASSISTANCE ADMINISTRATION MANUAL)
88. PROPERTY: UNLESS OTHERWISE STATED, REAL PROPERTY,
EQUIPMENT,INTANGIBLE PROPERTY AND DEBT INSTRUMENTS. (40
CFR PART 35; A-110)
89. QUALITY ASSURANCE NARRATIVE STATEMENT: A DESCRIPTION
INCLUDED IN AN APPLICATION WHICH EXPLAINS HOW PRECISION,
ACCURACY, REPRESENTATIVENESS, COMPLETENESS, AND
COMPARABILITY WILL BE ASSESSED, AND WHICH IS SUFFICIENTLY
DETAILED TO ALLOW AN UNAMBIGUOUS DETERMINATION OF THE
QUALITY ASSURANCE PRACTICES TO BE FOLLOWED THROUGHOUT
A RESEARCH PROJECT. (40 CFR PART 30 & ASSISTANCE
ADMINISTRATION MANUAL)
90. QUALITY ASSURANCE PROGRAM PLAN: A FORMAL DOCUMENT
WHICH DESCRIBES AN ORDERLY ASSEMBLY OF MANAGEMENT
POLICIES, OBJECTIVES, PRINCIPLES, ORGANIZATIONAL
RESPONSIBILITIES, AND PROCEDURES BY WHICH AN AGENCY OR
LABORATORY SPECIFIES HOW IT INTENDS TO: (A) PRODUCE DATA
OF DOCUMENTED QUALITY, AND (B) PROVIDE FOR THE
PREPARATION OF QUALITY ASSURANCE PROJECT PLANS AND
STANDARD OPERATING PROCEDURES. (40 CFR PART 30 &
ASSISTANCE ADMINISTRATION MANUAL)
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91. QUALITY ASSURANCE PROJECT PLAN: AN ORGANIZATION'S
WRITTEN PROCEDURES WHICH DELINEATE HOW IT PRODUCES
QUALITY DATA FOR A SPECIFIC PROJECT OR MEASUREMENT
METHOD. (40 CFR PART 30 & ASSISTANCE ADMINISTRATION
MANUAL)
92. REAL PROPERTY: LAND, INCLUDING LAND IMPROVEMENTS,
STRUCTURES AND APPURTENANCES THERETO, EXCLUDING
MOVABLE MACHINERY AND EQUIPMENT. (OMB CIRCULARS A-102 &
A-110; 40 CFR PART 30; ASSISTANCE ADMINISTRATION MANUAL)
93. RECIPIENT: (SEE ALSO "GRANTEE") 1. AN ORGANIZATION
RECEIVING FINANCIAL ASSISTANCE DIRECTLY FROM FEDERAL
AWARDING AGENCIES TO CARRY OUT A PROJECT OR PROGRAM.
THE TERM INCLUDES PUBLIC AND PRIVATE INSTITUTIONS OF
HIGHER EDUCATION, PUBLIC AND PRIVATE HOSPITALS, AND OTHER
QUASI-PUBLIC AND PRIVATENON-PROFITORGANIZATIONS SUCH AS,
BUT NOT LIMITED TO, COMMUNITY ACTION AGENCIES, RESEARCH
INSTITUTES, EDUCATIONAL ASSOCIATIONS AND HEALTH CENTERS.
THE TERM MAY INCLUDE COMMERCIAL ORGANIZATIONS, FOREIGN
OR INTERNATIONAL ORGANIZATIONS (SUCH AS AGENCIES OF THE
UNITED NATIONS) WHICH ARE RECIPIENTS, SUBRECIPIENTS, OR
CONTRACTORS OR SUBCONTRACTORS OF RECIPIENTS OR
SUBRECIPIENTS AT THE DISCRETION OF THE FEDERAL AWARDING
AGENCY. THE TERM DOES NOT INCLUDE GOVERNMENT-OWNED
CONTRACTOR-OPERATED FACILITIES OR RESEARCH CENTERS
PROVIDING CONTINUED SUPPORT FOR MISSION-ORIENTED, LARGE-
SCALE PROGRAMS THAT ARE GOVERNMENT-OWNED OR
CONTROLLED, OR ARE DESIGNATED AS FEDERALLY-FUNDED
RESEARCH AND DEVELOPMENT CENTERS. (OMB CIRCULAR A-110)
2. ANY ENTITY WHICH HAS BEEN AWARDED AND ACCEPTED AN
EPA ASSISTANCE AGREEMENT. (40 CFR PART 30; ASSISTANCE
ADMINISTRATION MANUAL)
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94. RECURRENT EXPENDITURES: THOSE EXPENSES ASSOCIATED
WITH THE ACTIVITIES OF A CONTINUING ENVIRONMENTAL
PROGRAM. ALL EXPENDITURES, EXCEPT THOSE FOR EQUIPMENT
PURCHASES WITH A UNIT ACQUISITION COST OF $5,000 OR MORE,
ARE CONSIDERED RECURRENT UNLESS JUSTIFIED BY THE
APPLICANT AS UNIQUE AND APPROVED AS SUCH BY THE AWARD
OFFICIAL IN THE ASSISTANCE AWARD. (ASSISTANCE
ADMINISTRATION MANUAL; 40 CFR PART 35)
95. RENEWAL: (SEE ALSO "CONTINUATION AWARD") AN EXTENSION
FOR AN ADDITIONAL FUNDING/BUDGET PERIOD FOR A PROJECT
HAVING NO PROJECTED COMPLETION DATE, BUT FOR WHICH
FEDERAL SUPPORT MUST BE RENEWED EACH YEAR. (ASSISTANCE
ADMINISTRATION MANUAL)
96. RESEARCH AND DEVELOPMENT: ALL RESEARCH ACTIVITIES,
BOTH BASIC AND APPLIED, AND ALL DEVELOPMENT ACTIVITIES
THAT ARE SUPPORTED AT UNIVERSITIES, COLLEGES, AND OTHER
NON-PROFIT INSTITUTIONS. "RESEARCH" IS DEFINED AS A
SYSTEMATIC STUDY DIRECTED TOWARD FULLER SCIENTIFIC
KNOWLEDGE OR UNDERSTANDING OF THE SUBJECT STUDIED.
"DEVELOPMENT" IS THE SYSTEMATIC USE OF KNOWLEDGE AND
UNDERSTANDING GAINED FROM RESEARCH DIRECTED TOWARD
THE PRODUCTION OF USEFUL MATERIALS, DEVICES, SYSTEMS, OR
METHODS, INCLUDING DESIGN AND DEVELOPMENT OF
PROTOTYPES AND PROCESSES. THE TERM RESEARCH ALSO
INCLUDES ACTIVITIES INVOLVING THE TRAINING OF INDIVIDUALS
IN RESEARCH TECHNIQUES WHERE SUCH ACTIVITIES USE THE
SAME FACILITIES AS OTHER RESEARCH AND DEVELOPMENT
ACTIVITIES AND WHERE SUCH ACTIVITIES ARE NOT INCLUDED IN
THE INSTRUCTION FUNCTION. (OMB CIRCULAR A-110)
97. SERVICES: A CONTRACTOR'S LABOR, TIME, OR EFFORTS WHICH
DO NOT INVOLVE THE DELIVERY OF A SPECIFIC END ITEM, OTHER
THAN DOCUMENTS, (E.G., REPORTS, DESIGN DRAWINGS,
SPECIFICATIONS). THIS TERM DOES NOT INCLUDE EMPLOYMENT
AGREEMENTS OR COLLECTIVE BARGAINING AGREEMENTS.
(ASSISTANCE ADMINISTRATION MANUAL)
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98. SHARE: WHEN REFERRING TO THE AWARDING AGENCY'S
PORTION OF REAL PROPERTY, EQUIPMENT OR SUPPLIES, SHARE
MEANS THE SAME PERCENTAGE AS THE AWARDING AGENCY'S
PORTION OF THE ACQUIRING PARTY'S TOTAL COSTS UNDER THE
GRANT TO WHICH THE ACQUISITION COSTS UNDER THE GRANT TO
WHICH THE ACQUISITION COST OF THE PROPERTY WAS CHARGED.
ONLY COSTS ARE TO BE COUNTED - NOT THE VALUE OF THIRD-
PARTY IN-KIND CONTRIBUTIONS. (OMB CIRCULAR A-102; 40 CFR
PART 31)
99. SMALL AWARD: A GRANT OR COOPERATIVE AGREEMENT NOT
EXCEEDING THE SMALL PURCHASE THRESHOLD FIXED AT 41 U.S.C.
403(11) (CURRENTLY $25,000). (OMB CIRCULAR A-110)
100. STATE: ANY OF THE SEVERAL STATES OF THE UNITED STATES,
THE DISTRICT OF COLUMBIA, THE COMMONWEALTH OF PUERTO
RICO, ANY TERRITORY OR POSSESSION OF THE UNITED STATES, OR
ANY AGENCY OR INSTRUMENTALITY OF A STATE EXCLUSIVE OF
LOCAL GOVERNMENTS. (OMB CIRCULAR A-87)
101. SUBAGREEMENT: A WRITTEN AGREEMENT BETWEEN AN EPA
RECIPIENT AND ANOTHER PARTY (OTHER THAN ANOTHER PUBLIC
AGENCY) AND ANY LOWER TIER AGREEMENT FOR SERVICES,
SUPPLIES, OR CONSTRUCTION NECESSARY TO COMPLETE THE
PROJECT. SUBAGREEMENTS INCLUDE CONTRACTS AND
SUBCONTRACTS FOR PERSONAL AND PROFESSIONAL SERVICES,
AGREEMENTS WITH CONSULTANTS, AND PURCHASE ORDERS. (40
CFR PART 30; ASSISTANCE ADMINISTRATION MANUAL)
102. SUBAWARD: AN AWARD OF FINANCIAL ASSISTANCE IN THE
FORM OF MONEY, OR PROPERTY IN LIEU OF MONEY, MADE UNDER
AN AWARD BY A RECIPIENT TO AN ELIGIBLE SUBRECIPIENT OR BE
A SUBRECIPIENT TO A LOWER TIER SUBRECIPIENT. THE TERM
INCLUDES FINANCIAL ASSISTANCE WHEN PROVIDED BY ANY LEGAL
AGREEMENT, EVEN IF THE AGREEMENT IS CALLED A CONTRACT,
BUT DOES NOT INCLUDE PROCUREMENT F GOODS AND SERVICES
NOR DOES IT INCLUDE ANY FORM OF ASSISTANCE WHICH IS
EXCLUDED FROM THE DEFINITION OF "AWARD" IN PARAGRAPH
(e) OF OMB CIRCULAR A-110. (OMB CIRCULAR A-110)
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103. SUBGRANT: AN AWARD OF FINANCIAL ASSISTANCE IN THE
FORM OF MONEY, OR PROPERTY IN LIEU OF MONEY, MADE UNDER
A GRANT BY A GRANTEE TO AN ELIGIBLE SUBGRANTEE. THE TERM
INCLUDES FINANCIAL ASSISTANCE WHEN PROVIDED BY
CONTRACTUAL LEGAL AGREEMENT, BUT DOES NOT INCLUDE
PROCUREMENT PURCHASES, NOR DOES IT INCLUDE ANY FORM OF
ASSISTANCE WHICH IS EXCLUDED FROM THE DEFINITION OF
grant IN 40 CFR PART 31. (OMB CIRCULAR A-102; 40 CFR PART 31)
104. SUBGRANTEE: THE GOVERNMENT OR OTHER LEGAL ENTITY TO
WHICH A SUBGRANT IS AWARDED AND WHICH IS ACCOUNTABLE TO
THE GRANTEE FOR THE USE OF THE FUNDS PROVIDED. (OMB
CIRCULAR A-102; 40 CFR PART 31)
105. SUBRECIPIENT: THE LEGAL ENTITY TO WHICH A SUBAWARD IS
MADE AND WHICH IS ACCOUNTABLE TO THE RECIPIENT FOR THE
USE OF THE FUNDS PROVIDED. THE TERM MAY INCLUDE FOREIGN
OR INTERNATIONAL ORGANIZATIONS (SUCH AS AGENCIES OF THE
UNITED NATIONS) AT THE DISCRETION OF THE FEDERAL AWARDING
AGENCY. (OMB CIRCULAR-110)
106. SUPPLIES: 1. ALL TANGIBLE PERSONAL PROPERTY OTHER
THAN equipment AS DEFINED IN 40 CFR PART 31. (OMB CIRCULAR A-
102)
2. ALL TANGIBLE PERSONAL PROPERTY EXCLUDING
EQUIPMENT, INTANGIBLE PROPERTY, AND DEBT INSTRUMENTS, AND
INVENTIONS OF A CONTRACTOR CONCEIVED OR FIRST ACTUALLY
REDUCED TO PRACTICE IN THE PERFORMANCE OF WORK UNDER A
FUNDING AGREEMENT ("SUBJECT INVENTIONS"), AS DEFINED IN 37
CFR 401, "RIGHTS TO INVENTIONS MADE BY NONPROFIT
ORGANIZATIONS AND SMALL BUSINESS FIRMS UNDER
GOVERNMENT GRANTS, CONTRACTS, AND COOPERATIVE
AGREEMENTS." (OMB CIRCULAR A-110)
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107. SUSPENSION: (1) AN ACTION BY A FEDERAL AWARDING AGENCY
THAT TEMPORARILY WITHDRAWS FEDERAL SPONSORSHIP UNDER
AN AWARD, PENDING CORRECTIVE ACTION BY THE
GRANTEE/RECIPIENT OR PENDING A DECISION TO TERMINATE THE
AWARD BY THE FEDERAL AWARDING AGENCY. SUSPENSION OF AN
AWARD IS A SEPARATE ACT FROM SUSPENSION UNDER FEDERAL
AGENCY REGULATIONS IMPLEMENTING E.O.s 12549 AND 12689,
"DEBARMENT AND SUSPENSION." (OMB CIRCULAR A-110)
2. DEPENDING ON THE CONTEXT, EITHER (1) TEMPORARY
WITHDRAWAL OF THE AUTHORITY TO OBLIGATE GRANT FUNDS
PENDING CORRECTIVE ACTION BY THE GRANTEE OR SUBGRANTEE
OR A DECISION TO TERMINATE THE GRANT, OR (2) AN ACTION
TAKEN BY A SUSPENDING OFFICIAL IN ACCORDANCE WITH AGENCY
REGULATIONS IMPLEMENTING E.O. 12549 TO IMMEDIATELY
EXCLUDE A PERSON FROM PARTICIPATING IN GRANT
TRANSACTIONS FOR A PERIOD, PENDING COMPLETION OF AN
INVESTIGATION AND SUCH LEGAL OR DEBARMENT PROCEEDINGS
AS MAY ENSUE. (OMB CIRCULAR A-102; 40 CFR PART 31)
108. TERMINATION: 1. PERMANENT WITHDRAWAL OF THE
AUTHORITY TO OBLIGATE PREVIOUSLY AWARDED GRANT FUNDS
BEFORE THAT AUTHORITY WOULD OTHERWISE EXPIRE. IT ALSO
MEANS THE VOLUNTARY RELINQUISHMENT OF THAT AUTHORITY BY
THE GRANTEE OR SUBGRANTEE. TERMINATION DOES NOT
INCLUDE: (1) WITHDRAWAL OF FUNDS AWARDED ON THE BASIS OF
THE GRANTEE'S UNDERESTIMATE OF THE UNOBLIGATED BALANCE
IN A PRIOR PERIOD; (2) WITHDRAWAL OF THE UNOBLIGATED
BALANCE AS OF THE EXPIRATION OF A GRANT; (3) REFUSAL TO
EXTEND A GRANT OR AWARD ADDITIONAL FUNDS, TO MAKE A
COMPETING OR NONCOMPETING CONTINUATION, RENEWAL,
EXTENSION, OR SUPPLEMENTAL AWARD; OR (4) VOIDING OF A
GRANT UPON DETERMINATION THAT THE AWARD WAS OBTAINED
FRAUDULENTLY, OR WAS OTHERVvlSE ILLEGAL OR INVALID FROM
INCEPTION. (OMB CIRCULAR A-102; 40 CFR PART 31)
2. THE CANCELLATION OF FEDERAL SPONSORSHIP, IN WHOLE
OR IN PART, UNDER AN AGREEMENT AT ANY TIME PRIOR TO THE
DATE OF COMPLETION. (OMB CIRCULAR A-110)
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3. THE CANCELLATION OF AN ASSISTANCE AGREEMENT, IN
WHOLE OR IN PART, BEFORE THE SCHEDULED PROJECT
COMPLETION DATE. THE RECIPIENT IS ENTITLED TO BE PAID THE
EPA SHARE OF ALLOWABLE COSTS INCURRED UP TO THE DATE OF
TERMINATION AND OF ALLOWABLE COSTS RELATED TO NON-
CANCELABLE COMMITMENTS MADE PRIOR TO TERMINATION.
(ASSISTANCE ADMINISTRATION MANUAL)
109. TERMS OF A GRANT OR SUBGRANT: ALL REQUIREMENTS OF
THE GRANT OR SUBGRANT, WHETHER IN STATUTE, REGULATIONS,
OR THE AWARD DOCUMENT.
(OMB CIRCULAR A-102; 40 CFR PART 31)
110. THIRD PARTY IN-KIND CONTRIBUTIONS: 1. THE VALUE OF NON-
CASH CONTRIBUTIONS PROVIDED BY NON-FEDERAL THIRD PARTIES.
THIRD PARTY IN-KIND CONTRIBUTIONS MAY BE IN THE FORM OF
REAL PROPERTY, EQUIPMENT, SUPPLIES AND OTHER EXPENDABLE
PROPERTY, AND THE VALUE OF GOODS AND SERVICES DIRECTLY
BENEFITING AND SPECIFICALLY IDENTIFIABLE TO THE PROJECT OR
PROGRAM. (OMB CIRCULAR A-110)
2. PROPERTY OR SERVICES WHICH BENEFIT A FEDERALLY
ASSISTED PROJECT OR PROGRAM AND WHICH ARE CONTRIBUTED
BY NON-FEDERAL THIRD PARTIES WITHOUT CHARGE TO THE
GRANTEE, OR A COST-TYPE CONTRACTOR UNDER THE GRANT
AGREEMENT. (OMB CIRCULAR A-102; 40 CFR PART 31)
111. UNEXPENDED FEDERAL FUNDS. (SEE ALSO "UNOBLIGATED
BALANCE") FEDERAL FUNDS OBLIGATED BUT NOT YET DISBURSED.
REPRESENTS THE DIFFERENCE BETWEEN THE AMOUNT OF EPA
FUNDS AWARDED TO THE RECIPIENT OF AN ASSISTANCE
AGREEMENT AND THE AMOUNT EPA HAS PAID THAT RECIPIENT.
(ASSISTANCE ADMINISTRATION MANUAL)
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112. UNLIQUIDATED OBLIGATIONS: 1. FOR REPORTS PREPARED ON
A CASH BASIS - THE AMOUNT OF OBLIGATIONS INCURRED BY THE
GRANTEE THAT HAVE NOT BEEN PAID. FOR REPORTS PREPARED ON
AN ACCRUED EXPENDITURE BASIS, THEY REPRESENT THE AMOUNT
OF OBLIGATIONS INCURRED BY THE GRANTEE FOR WHICH AN
OUTLAY HAS NOT BEEN RECORDED. (OMB CIRCULAR A-102; 40 CFR
PART 31)
2. THE PORTION OF THE FUNDS AUTHORIZED BY THE
FEDERAL AWARDING AGENCY THAT HAS NOT BEEN OBLIGATED BY
THE RECIPIENT AND IS DETERMINED BY DEDUCTING THE
CUMULATIVE OBLIGATIONS FROM THE CUMULATIVE FUNDS
AUTHORIZED. (OMB CIRCULAR A-110)
3. AN OBLIGATION FOR WHICH PAYMENT HAS NOT BEEN
MADE; CONTINGENT LIABILITIES FOR CONTRACTS AND ORDERS
OUTSTANDING. (ASSISTANCE ADMINISTRATION MANUAL)
113. UNOBLIGATED BALANCE: THE PORTION OF THE FUNDS
AUTHORIZED BY THE FEDERAL AWARDING AGENCY THAT HAS NOT
BEEN OBLIGATED BY THE GRANTEE/RECIPIENT AND IS DETERMINED
BY DEDUCTING THE CUMULATIVE OBLIGATIONS FROM THE
CUMULATIVE FUNDS AUTHORIZED. (OMB CIRCULARS A-102 & A-110;
40 CFR PART 31)
114. UNOBLIGATED FEDERAL FUNDS: FEDERAL FUNDS THAT THE
RECIPIENT HAS NOT SPENT; THE DIFFERENCE BETWEEN THE
AMOUNT OF EPA FUNDS AWARDED TO THE RECIPIENT OF AN
ASSISTANCE AGREEMENT AND THE EPA SHARE OF THE PROJECT
OBLIGATIONS THAT THE RECIPIENT HAS INCURRED UNDER THAT
AGREEMENT. (ASSISTANCE ADMINISTRATION MANUAL)
115. UNRECOVERED INDIRECT COST: THE DIFFERENCE BETWEEN
THE AMOUNT AWARDED AND THE AMOUNT WHICH COULD HAVE
BEEN AWARDED UNDER THE RECIPIENT'S APPROVED NEGOTIATED
INDIRECT COST RATE. (OMB CIRCULAR A-110)
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116. UNSOLICITED PROPOSAL: AN INFORMAL WRITTEN OFFER TO
PERFORM EPA FUNDED WORK FOR WHICH EPA DID NOT PUBLISH
A SOLICITATION. (40 CFR PART 30; ASSISTANCE ADMINISTRATION
MANUAL)
117. VIOLATING FACILITY: ANY FACILITY THAT IS OWNED, LEASED,
OR SUPERVISED BY AN APPLICANT, RECIPIENT, CONTRACTOR, OR
SUBCONTRACTOR THAT EPA LISTS UNDER 40 CFR PART 15 AS NOT
IN COMPLIANCE WITH FEDERAL, STATE, OR LOCAL REQUIREMENTS
UNDER THE CLEAN AIR ACT OR CLEAN WATER ACT. A FACILITY
INCLUDES ANY BUILDING, PLANT, INSTALLATION, STRUCTURE,
MINE, VESSEL, OR OTHER FLOATING CRAFT. (40 CFR PART 30;
ASSISTANCE ADMINISTRATION MANUAL)
118. VOLUNTARY EXCLUSION: A TERM OF SETTLEMENT IN LIEU OF
A FINDING FOR DEBARMENT UNDER WHICH A PERSON OR ENTITY
AGREES TO VOLUNTARILY ABSTAIN FROM PARTICIPATION IN EPA
ASSISTED PROJECTS. (ASSISTANCE ADMINISTRATION MANUAL)
119. WORKING CAPITAL ADVANCE: A PROCEDURE WHEREBY FUNDS
ARE ADVANCED TO THE RECIPIENT TO COVER ITS ESTIMATED
DISBURSEMENT NEEDS FOR A GIVEN INITIAL PERIOD. (OMB
CIRCULAR A-110)
120. WORKPLAN/WORKPROGRAM (SEE ALSO "PROJECT NARRATIVE":
THE DOCUMENT WHICH IDENTIFIES HOW AND WHEN THE
APPLICANT WILL USE PROGRAM FUNDS TO PRODUCE SPECIFIC
OUTPUTS. (40 CFR PART 35; ASSISTANCE ADMINISTRATION MANUAL)
MAY 23, 1994
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