EPA Publication Number 202K09001
EPA Contract Number EP-W-08-042
Appendix
Tribal, U.S. Territories
and Insular Areas
Administrative and
Financial Guidance for
Assistance Agreements
U.S. Environmental Protection
Agency (EPA)
Updated September 2013
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EPA Tribal, U.S. Territories and Insular Areas Administrative and Financial Guidance for Assistance Agreements
Last Updated September 2013 page 2 of 519
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Contents
CONTENTS 3
ACRONYMS 7
APPLICATION PACKAGE FORMS 9
APPLICATION CHECKLIST 9
SF 424 APPLICATION FOR FEDERAL ASSISTANCE 10
SF424A BUDGET INFORMATION—NON-CONSTRUCTION PROGRAMS 16
SF424B Assurances—Non-Construction Programs 20
SF424C Budget Information-Construction Programs 21
SF 424D Assurances—Construction Programs 23
EPA FORM 4700-4 PREAWARD COMPLIANCE REVIEW REPORT 26
ANTI-LOBBYING FORM (IF APPLICABLE) 28
DETAILED ITEMIZED BUDGET 30
See the Samples and Examples section of the Appendix for an example 30
NATIONAL ENVIRONMENTAL POLICY ACT (N EPA) 31
FACT SHEET FOR APPLICANTS INTERGOVERNMENTAL REVIEW PROCESS 32
NARRATIVE STATEMENT OR WORK PLAN 33
See the Samples and Examples section of the Appendix for an example 33
NEGOTIATED INDIRECT COST RATE AGREEMENT (IF APPLICABLE) 34
Indirect Cost Rates for EPA Grants 34
INTERIOR BUSINESS CENTER INDIRECT COST SERVICES (FORMERLY THE NATIONAL BUSINESS CENTER) 34
NEW INTERIM INDIRECT COST RATE POLICY FOR TRIBES 34
INDIRECT COST SERVICES 35
QUALITY ASSURANCE NARRATIVE STATEMENT (IF APPLICABLE) 36
See the Samples and Examples section of the Appendix for an example 36
ASSISTANCE ADMINISTRATION MANUAL 5700 37
PART 2 PRE-AWARD, SECTION 01 SUBAWARDS UNDER EPA ASSISTANCE AGREEMENTS 37
BEST PRACTICES GUIDE FOR CONFERENCES 44
CONTACT INFORMATION 70
HEADQUARTERS AND REGIONAL OFFICES 70
PROFESSIONAL ORGANIZATIONS 72
PUBLICATIONS 72
RESOURCES 72
SERVICE PROVIDERS 73
CONTACT INFORMATION WITH TRACKING DOCUMENT 76
DATA UNIVERSAL NUMBERING SYSTEM (DUNS) APPLICATION FORM 77
DISADVANTAGED BUSINESS ENTERPRISE (DBE) 79
DBE CERTIFICATION FACT SHEET 79
DBE INSTRUCTIONS 82
DBE PROGRAM OVERVIEW FACT SHEET 83
DBE REPORTING FACT SHEET 91
DBE RESOURCE LIST 94
DBE RULES AND REGULATIONS 99
DBE UTILIZATION FORM 101
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Also known as EPA Form 5700-52A, MBE/WBE Utilization Under Federal Grants and Cooperative
Agreements 101
EPA FORM 5700-52A MBE/WBE UTILIZATION UNDER FEDERAL GRANTS, COOPERATIVE AGREEMENTS, AND INTERAGENCY
AGREEMENTS 102
EPA FORM 6100-2, 6100-3, AND 6100-4 107
EPA FORM 6100-2 DBE SUBCONTRACTOR PARTICIPATION FORM 108
EPA FORM 6100-3 DBE SUBCONTRACTOR PERFORMANCE FORM 110
EPA FORM 6100-4 DBE SUBCONTRACTOR UTILIZATION FORM 112
ENVIRONMENTAL PROTECTION AGENCY REGULATIONS AND DESCRIPTION 114
EPA ADMINISTRATIVE AND FINANCIAL ONSITE REVIEW QUESTIONNAIRE 119
EPA ELECTRONIC FUNDS TRANSFER (EFT) 138
ASSISTANCE AGREEMENT PAYMENT PROCESS 138
PAYMENT PROCESS RECIPIENTS MANUAL, EXHIBITA 143
FAIR SHARE OBJECTIVES FACT SHEET 148
FEDERAL FUNDING ACCOUNTABILITY AND TRANSPARENCY ACT (FFATA) 150
FUNCTIONAL REQUIREMENTS LETTER (FRL) 8569-3 151
GLOSSARY 152
GOALS AND OBJECTIVES FOR ADMINISTRATIVE AND FINANCIAL GUIDANCE FOR ASSISTANCE AGREEMENTS
170
MINORITY BUSINESS ENTERPRISE AND WOMEN BUSINESS ENTERPRISE (MBE/WBE) 177
MBE/WBE CERTIFICATION FACT SHEET 177
See DBE Certification Fact Sheet 177
MBE/WBE REPORTING FACT SHEET 177
See DBE Reporting Fact Sheet 177
MBE/WBE UTILIZATION UNDER FEDERAL GRANTS AND COOPERATIVE AGREEMENTS 177
See DBE Utilization Form 177
NEGOTIATED FAIR SHARE OBJECTIVES 178
REGION 1 178
REGION 2 179
REGIONS 180
REGION 4 183
REGIONS 185
REGION 6 186
REGION 7 188
REGIONS 189
REGION 9 190
REGION 10 192
OFFICE OF MANAGEMENT AND BUDGET 194
OMB CIRCULAR A-87 194
Title 2: Grants and Agreements, Part 225—Cost Principles for State, Local and Indian Tribal Governments
194
ATTACHMENT A 196
ATTACHMENT B 203
ATTACHMENTC 226
ATTACHMENT D 231
EPA Tribal, U.S. Territories and Insular Areas Administrative and Financial Guidance for Assistance Agreements
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ATTACHMENT E 233
OMB CIRCULAR A-133 240
OTHER ASSISTANCE AGREEMENT FORMS 274
EPA 190-F-04-001 U.S. EPA PAYMENT REQUEST 274
EPA FORM 5700-54 KEY CONTACTS FORM 276
SF425 FEDERAL FINANCIAL REPORT 277
SF425A FEDERAL FINANCIAL REPORT ATTACHMENT 283
SF 3881 VENDOR/MISCELLANEOUS PAYMENT ENROLLMENT FORM 285
PLANNING CALENDAR 288
PURCHASING SUPPLIES, EQUIPMENT, AND SERVICES UNDER EPA GRANTS TO LOCAL GOVERNMENTS 289
CHAPTER 1-GRANT RECIPIENT PURCHASING REQUIREMENTS 289
CHAPTER 2-GRANT RECIPIENT PURCHASING METHODS 294
CHAPTER 3-EPA REVIEW OF GRANT RECIPIENT PURCHASES 297
APPENDIX A 299
APPENDIX B 307
APPENDIX C 309
SAMPLES AND EXAMPLES 311
ADMINISTRATIVE CHECKLIST 311
ASSISTANCE AGREEMENT AWARD EXAMPLES 315
Cooperative Agreement WC - 83381701 - 0 Page 1 315
Grant Agreement Non-construction US-12345678-0 Page 1 326
Grant Agreement with Construction US-12345678-0 Page 1 331
Assistance Amendment 339
DETAILED ITEMIZED BUDGET 346
SAMPLE BUDGET DETAIL 347
FINANCIAL STATUS REPORT EXAMPLE 349
KEY CONTACTS LIST 351
NARRATIVE STATEMENT OR WORK PLAN 353
SURVEYOR RECIPIENT'S MANAGEMENT SYSTEMS 362
TlMESHEETS 365
TRAVEL AUTHORIZATIONS, VOUCHERING, AND REPORTING FORMS 367
Trip Request 367
Trip Report 368
EXAMPLE POLICIES AND PROCEDURES 371
SIX GOOD FAITH EFFORTS AND CONTRACT ADMINISTRATION FACT SHEET 424
STANDARD INDUSTRY CLASSIFICATION (SIC) CODES 428
TITLE 2 OF THE CODE OF FEDERAL REGULATIONS 430
See Office of Management and Budget (OMB) Circular A-87 Cost Principles for State, Local, and Indian
Tribal Governments 430
TITLE 25 OF THE CODE OF FEDERAL REGULATIONS 431
TITLE 25: INDIAN SELF-DETERMINATION AND EDUCATION ASSISTANCE ACT 431
TITLE 40 OF THE CODE OF FEDERAL REGULATIONS 432
TITLE 40: PROTECTION OF ENVIRONMENT 432
PART31-UNIFORM ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND COOPERATIVE AGREEMENTS
TO STATE AND LOCAL GOVERNMENTS 432
EPA Tribal, U.S. Territories and Insular Areas Administrative and Financial Guidance for Assistance Agreements
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TITLE 40: PROTECTION OF ENVIRONMENT 492
PART33—PARTICIPATION BY DISADVANTAGED BUSINESS ENTERPRISES IN UNITED STATES
ENVIRONMENTAL PROTECTION AGENCY PROGRAMS 492
TITLE 48: FEDERAL ACQUISITION REGULATIONS SYSTEM 517
PART370-SPECIAL PROGRAMS AFFECTING ACQUISITION 517
Subpart 370.5—Acquisitions Under the Buy Indian Act 517
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Acronyms
ACH - Automated Clearing House
AFC-Audit Follow-Up Coordinator
AI/NA-American Indians and Alaskan Natives
AIAC - American Indian Advisory Council
AIEO-American Indian Environmental Office
AO - Award Official
ASAP - Automated Standard Application for Payment
BIA- Bureau of Indian Affairs
BLM - Bureau of Land Management
CCR-Central Contractor Registration
CFDA - Catalog of Federal Domestic Assistance
CFR - Code of Federal Regulations
D&B - Dun and Bradstreet
DBE- Disadvantaged Business Enterprise
DD- Direct Deposit
DD/EFT - Direct Deposit / Electronic Funds Transfer
DDO - Disputes Decision Official
DIGA - Divisional Office of the Assistant Inspector General of Audits
DOD - Department of Defense
DOI - Department of the Interior
DOJ - Department of Justice
DOT - Department of Transportation
DUNS - Data Universal Numbering System
EA- Environmental Assessment
EFT - Electronic Funds Transfer
EIS - Environmental Impact Statement
EPA- Environmental Protection Agency
EPA- United States Environmental Protection Agency
FFATA - Federal Funding Accountability and Transparency Act
FOSTTA - Forum on State and Tribal Toxics Action
FSR- Financial Status Report
GAAP - Generally Accepted Accounting Principles
GAO- United States General Accounting Office
GAP-General Assistance Program
GASB - Government Accounting Standards Board
GMO - Grants Management Office
QMS - Grants Management Specialist
GS - Grants Specialist
GSA - General Services Administration
HBCU - Historically Black Colleges and Universities
HHS - Department of Health and Human Services
HIS- Indian Health Service
HQ- EPA's Headquarters Office in Washington, DC
HUD - United States Department of Housing and Urban Development
IAG - Interagency/lntergovernmental Agreement/International Agreement
IBC- Interior Business Center
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IFMS-Integrated Financial Management System
IMS - Indian Health Service
IPPC- Indian Program Policy Council
LVFC - Las Vegas Finance Center
MBDA - Minority Business Development Agency
MBE - Minority Business Enterprises
MBE/WBE - Minority Business Enterprise / Women Business Enterprise
NAFOA- National American Finance Officers Association
NBC - National Business Center (now known as the Interior Business Center)
NCAIED- National Center for American Indian Enterprise Development
NEJAC- National Environmental Justice Advisory Council
NGMA - National Grants Management Association
NIWG - National Indian Workgroup
NILWG - National Indian Law Workgroup
NTOC - National Transportation Operations Coalition
OIBA - Office of the Assistant Inspector General for Audits
OIG - EPA's Office of the Inspector General
OIGA - Office of the Assistance Inspector General for Audits
OMB - Office of Management Budget
OSBP-Office of Small Business Programs
OSDBU - Office of Small and Disadvantaged Business Utilization
PO - Project Officer
PPG - Performance Partnership Grants
RTOC- Regional Tribal Operations Committee (Region 9)
SAM - System for Award Management
SBA - Small Business Association
SBE - Small Business Enterprise
SF- Standard Form
SRF - State Revolving Fund
TERO-Tribal Employment Rights Office
TOC-Tribal Operations Committee
TPPC-Tribal Pesticide Program Council
TSC - Tribal Science Council
USDA - United States Department of Agriculture
WBE - Women's Business Enterprises
EPA Tribal, U.S. Territories and Insular Areas Administrative and Financial Guidance for Assistance Agreements
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Required:
1. Standard Form 424 Application for Federal Assistance
2. Standard Form 424A Budget Information - Non-Construction Programs
3. EPA Form 4700-4 Preaward Compliance Review Report
4. Detailed Itemized Budget
5. Narrative Statement or Work Plan
Highly recommended:
• Key Contacts List
Items only required under certain circumstances:
• Anti-Lobbying Form
• Environmental Assess (EA)
• Environmental Impact Statement (EIS)
• Negotiated Indirect Cost Rate Agreement
• Quality Assurance Narrative Statement
Applicants must have an EPA Electronic Funds Transfer (EFT) account.
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http://www.epa.gov/ogd/AppKit/application.htm
OMB Number: 4040-0004
Expiration Date: 04/31/2012
Application for Federal Assistance SF-424 Version 02
*1. Type of Submission
D Preapplication
D Application
D Changed/Corrected Application
*2. Type of *If revision, select appropriate letter(s):
Application |
° New *Other (Specify)
D Continuation
D Revision
I
*3. Date Received: 4. Applicant Identifier:
5a. Federal Entity Identifier:
*5b. Federal Award Identifier:
State Use Only:
6. Date Received by State:
7. State Application Identifier:
8. APPLICANT INFORMATION:
*a. Legal Name:
*b. Employer/ Taxpayer Identification Number (BIN/TIN);
*c. Organizational DUNS:
d. Address:
* Street 1: I
Street 2: I
*City: I
County: '
*State: I
Province: «
Country: '
*Zip/Postal Code:
e. Organizational Unit:
Department Name:
Division Name:
f. Name and contact information of person to be contacted on matters involving this application:
Prefix: I
Middle Name:
*Last Name: I
Suffix: I
First Name:
Title:
Organizational Affiliation:
•"•Telephone Number: I Fax Number:
•"Email:
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OMB Number: 4040-0004
Expiration: 04/31/2012
Application for Federal Assistance SF-424
Version 02
9. Type of Applicant 1: Select Applicant Type:
1—
*Other (specify):
*10. Name of Federal Agency:
11. Catalog of Federal Domestic Assistance Number:
I
CFDA Title:
* 12. Funding Opportunity Number:
*Title:
13. Competition Identification Number:
Title:
14. Areas affected by Project (Cities, Countries, States., etc.)
jg^^
Attach Supporting documents as specified in agency instructions.
Add Attachments Delete Attachments View Attachments
EPA Tribal, U.S. Territories and Insular Areas Administrative and Financial Guidance for Assistance Agreements
Last Updated September 2013 page 11 of 519
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OMB Number: 4040-0004
Expiration Date: 04/31/2012
Application for Federal Assistance SF-424 Version 02
16. Congressional Districts Of:
*a. Applicant I *b. Program/Project I
Attach an additional list of Program/ Project Congressional Districts if needed.
Add Attachment
17. Proposed Project:
*a. Start Date: I *b. End Date: 1
18.Estimated Funding ($):
*a. Federal'
*b. Applicant'
*c. State i
*d.Local I
*e. Other"
*f. Program Income'
*g. TOTAL I
*19. Is Application Subject to Review By State Under Executive Order 12372 Process?
Da. This application was made available to the State under the Executive Order 12372 Process for review on I
Db. Program is subject to E.0.12372 but has not been selected by the State for review.
DC. Program is not covered by E.O 12372
*20. Is the Applicant Delinquent On Any Federal Debt? (If "Yes", provide explanation.)
D Yes D No
21. *By signing this application, I certify (1) to the statements contained in the list of certifications** and (2) that the statements
herein are true, complete and accurate to the best of my knowledge. I also provide the required assurances** and agree to
comply with any resulting terms if I accept an award. I am aware that any false, fictitious, or fraudulent statements or claims
may subject me to criminal, civil, or administrative penalties. (U.S. Code, Title 218, Section 1001)
D**l AGREE
"The list of certifications and assurances, or an internet site where you may obtain this list, is contained in the announcement or agency
specific instructions.
Authorized Representative:
Prefix: I *First Name: I
Middle Name: *
*Last Name: I
Suffix: I
*Title: 1
Telephone Number: I Fax Number:
*Email:l
*Signature of Authorized Representative: *Date Signed:
EPA Tribal, U.S. Territories and Insular Areas Administrative and Financial Guidance for Assistance Agreements
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OMB Number 4040-0004
Expiration Date: 04/31/2012
Application for Federal Assistance SF-424 Version 02
'Applicant Federal Debt Delinquency Explanation
The following field should contain an explanation if the Applicant organization is delinquent on any Federal Debt maximum number of
characters that can be entered is 4,000. Try and avoid extra spaces and carriage returns to maximize the availability of space.
EPA Tribal, U.S. Territories and Insular Areas Administrative and Financial Guidance for Assistance Agreements
Last September 2013 13 of 519
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INSTRUCTIONS FOR THE SF-424
Public reporting burden for this collection of information is estimated to average 60 minutes per response, including time for reviewing instructions, searching
existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. Send comments regarding the
burden estimate or any other aspect of this collection of information, including suggestions for reducing this burden, to the Office of Management and Budget,
Paperwork Reduction Project (0348-0043), Washington, DC 20503,
PLEASE DO NOT RETURN YOUR COMPLETED FORM TO THE OFFICE OF MANAGEMENT AND BUDGET. SEND IT TO THE ADDRESS PROVIDED
BY THE SPONSORING AGENCY.
Tliis is a standard form (including the continuation sheet) required for use as a cover sheet for submission of preapplications and applications and
related information tinder discretionary programs. Some of the items are required and some tire options] al the discretion of the applicant or the Federal
agency (agency). Required items are identified with an asterisk on the form and are specified in the instructions below, In addition to the instructions
provided below, applicants must consult agency instructions to determine specific requirements.
Item
1.
2.
3.
4.
5a
5b.
6.
7.
8.
Entry;
Type of Submission: (Required); Select one type of submission in
accordance with agency instructions.
* Preapplication
• Application
• Changed/Corrected Application - If requested by the agency, check
if this submission is to change or correct a previously submitted
application. Unless requested by the agency, applicants may not
use this to submit changes after the closing date.
Type of Application; (Required) Select one type of application in
accordance with agency instructions.
• New - An application that is being submitted to an agency for the
first time.
• Continuation - An extension for an additional funding/budget period
for a project with a projected completion date. This can include
renewals.
• Revision - Any change in the Federal Government's financial
obligation or contingent liability from an existing obligation . If a
revision, enter the appropriate letter(s). More than one may be
selected. If "Other" is selected, please specify in text box provided.
A, Increase Award B. Decrease Award
C. Increase Duration D. Decrease Duration
E. Other (specify!
Date Received: Leave this field blank This date will be assigned by the
Federal agency.
Applicant Identifier; Biter the entity identifier assigned by the Federal
agency, if any, or applicant's control number, if applicable.
Federal Entity Identifier; Enter the number assigned to your
organization by the Federal Agency if any,
Federal Award Identifier; For new applications leave blank. For a
continuation or revision to an existing award, enter the previously
assigned Federal award identifier number. If a changed/corrected
application, enter the Federal Identifier in accordance with agency
instructions.
Date Received by State: Leave this field blsnk. This date will be
assigned by the State, if applicable.
State Application Identifier: Leave this field blank. This identifier wilt
be assigned by the State, if applicable,
Applicant Information: Enter the following in accordance with agency
instructions:
a. Legal Name: (Required): Enter the legal name of applicant that will
undertake the assistance activity. This is the name that the organization
has registered with the Centra! Contractor Registry, Information on
registering with CCR maybe obtained by visiting the Grants.gov website.
b. Employer/Taxpayer Number (EIN/TIN): (Required): Enter the
Employer or Taxpayer Identification Number (EIN or TIN) as assigned by
the Internal Revenue Service. If your organization is not in the US, enter
44-4444444.
c. Organizational DUNS: (Required) Enter the organization's DUNS or
DUNS-M number received from Dun and Bradstreet. Information on
obtaining a DUNS number may be obtained by visiting the Grants.gov
website.
d. Address: Enter the complete address as follows: Street address (Line
1 required), City (Required). County, State (Required, if country is US),
Province, Country (Required), Zip/Postal Code (Required, if country is
US).
e. Organizational Unit: Enter the name of the primary organizational
unit (and department or division, if applicable) that will undertake the
Item
10.
11.
12.
13
14.
15.
16.
17.
18,
19
Entry:
Name Of Federal Agency: (Required) Enter the name of the
Federal agency from which assistance is being requested with
this application.
Catalog Of Federal Domestic Assistance Number/Title:
Enter th e Catalog of Federal Domestic Assistance number and
title of the program under which assistance is requested, as
found in the program announcement, if applicable.
Funding Opportunity Number/Title: (Required) Enter the
Funding Opportunity Number and title of the opportunity under
which assistance is requested, as found in the program
announcement.
Competition Identification Number/Title: Enter the
Competition identification Number and title of the competition
under which assistance is requested, if applicable-
Areas Affected By Project: List the areas or entities using
the categories (e.g., cities, counties, states, etc.) specified in
agency instructions. Use the continuation sheet to enter
additional areas, if needed.
Descriptive Title of Applicant's Project: (Required) Enter a
brief descriptive title of the project. If appropriate, attach a
map showing project location (e.g., construction or real
property projects). For preapplications. attach a summary
description of the project.
Congressional Districts Of: (Required) 16a Enter the
applicant's Congressional District, and 1Gb. Enter all District(s)
affected by the program or project. Enter in the format: 2
characters State Abbreviation - 3 characters District Number,
e.g., CA-005 for California 5!" district. CA-012 for California 12!"
district, NC-103 for North Carolina's 103rD district.
• If all congressional districts in a state are affected, enter
^all" for the district number, e.g.. MD-all for all
congressional districts in Maryland.
• !f nationwide, i.e. all districts within all states are affected,
enter US-all.
• If the program/p reject is outside the US, enter 00-000.
Proposed Project Start and End Dates: (Required) Enter the
proposed start date and end date of the project.
Estimated Funding: (Required) Enter the amount requested
or to be contributed during the first funding/budget period by
each contributor. Value of in-kind contributions should be
included on appropriate tines, as applicable. If the action will
result in a dollar change to an existing award, indicate only the
amount of the change. For decreases, enclose the amounts in
parentheses.
Is Application Subject to Re view by State Under Executive
Order 12372 Process? Applicants should contact the State
Single Point of Contact (SPOC) for Federal Executive Order
1 2372 to determine whether the application is subject to the
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9.
assistance activity, if applicable.
f. Name and contact information of person to be contacted on
matters Involving this application: Enter the name (First and last name
required), organizational affiliation (if affiliated with an organization other
than the applicant organization), telephone number (Required), fax
number, and email address (Required) of the person to contact on
matters related to this application.
Type of Applicant: (Required)
Select up to three applicant type(s) in accordance with agency
instructions.
A State Government
B. County Government
C. City or Township Government
D. Special District Government
E. Regional Organization
F. U.S. Territory or Possession
G. Independent School District
H, Public/State Controlled
Institution of Higher Education
l_ Indian/Native American Tribal
Government (Federally
Recognized)
J, Indian/Native American Tribal
Government (Other than
Federally Recognized)
K, Indian/Native American
Tribally Designated
Organization
L. Public/Indian Housing
Authority
M. Nonprofit with 501C3 IRS
Status (Other than Institution
of Higher Education)
N, Nonprofit without 501C3 IRS
Status (Other than Institution
of Higher Education)
O. Private Institution of Higher
Education
P. Individual
Q. For-Profit Organization
(Other than Small Business)
R, Small Business
S. Hispanic-serving Institution
T. Historically Black Colleges
and Universities (HBCUs)
U, Tribally Controlled Colleges
and Universities (TCCUs)
V. Alaska Native and Native
Hawaiian Serving Institutions
W. Non-domestic (non-US)
Entity
X. Other (specify)
20.
21.
State intergovernmental review process. Select the
appropriate box. If "a." is selected, enter the date the
application was submitted to the State
Is the Applicant Delinquent on any Federal Debt?
(Required) Select the appropriate box. This question applies to
the applicant organization, not the person who signs as the
authorized representative Categories of debt include
delinquent audit disallowances, loans and taxes.
If yes, include an explanation on the continuation sheet.
Authorized Representative: (Required) To be signed and
dated by the authorized representative of the applicant
organization. Enter the name (First and last name required)
title (Required), telephone number (Required), fax number,
and email address (Required) of the person authorized to sign
for the applicant.
A copy of the governing body's authorization for you to sign
this application as the official representative must be on file in
the applicant's office. (Certain Federal agencies may require
that this authorization be submitted as part of the application,)
EPA Tribal, U.S. Territories and Insular Areas Administrative and Financial Guidance for Assistance Agreements
Last Updated September 2013 page 15 of 519
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SF '" : ~ -" ••
http://www.epa.gov/ogd/AppKit/application.htm
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
if)
S
s
Non-Federal
(d)
S
$
New or Revised Budget
Federal
if)
S
S
Non-Federal
(0
s
s
Total
(g)
S
t
SECTION' B - BUDGET CATEGORIES
6 Object Class Categories
a. Personnel
b. Fringe Benefits
c. Travel
d. Equipment
e. Supplies
f Contractual
g Construction
h Other
i. Total Direct Charges (sum of 6a-6k)
j. Indirect Charges
k. TOTALS (sum of 6i and Sj)
GRANT PROGRAM. FUNCTION OR ACTIVITY
(D
$
(2)
S
(3)
$
(4)
$
Total
(5)
$
7. Program Income
$
S
$
$
$
Authorized for Local Reproduction
Standard Form 424A (Rev
Presented by OMB Cuculu A-l 03
EPA Tribal, U.S. Territories and Insular Areas Administrative and Financial Guidance for Assistance Agreements
Last Updated September 2013 page 16 of 519
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SECTION C - NON-FEDERAL RESOURCES
(3) Grant Program
8
9.
10
11
12. Tool (SUM OF LKES 8-11)
(b) Applicant
(c) State
(d) Other Sources
(e) TOT.ALS
S
S
S
S
S
SECTION D - FORECASTED CASH NEEDS
13 Federal
14 Non-Federal
15. TOTAL (sum of lines 13 and 14)
Total for l;t Year
S
S
1* Quarter
S
S
2nd Quarter
S
S
3^ Quarter
S
S
4" Quarter
S
S
SECTION E - BUDGET ESTIMATES OF FEDERAL FUNDS NEEDED FOR BALANCE OF THE PROJECT
(a) Grant Program
16
17
18
19.
20. TOTAL (sum of lines 16-19)
FUTURE FUNDING PERIODS (years)
(b) First
$
S
(c) Second
S
S
(d) Third
S
S
(e) Fourth
S
SECTION F - OTHER BUDGET INFORMATION
21 Direct Charges:
22. Indirect Charges:
23 Remarks:
Authorized for Local Reproduction
Standard Form 424A (Rev 4-201:) Page 2
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INSTRUCTIONS FOR THE SF-424A
Public reporting burden for this collection of information is estimated to average 180 minutes per response, including time for reviewing
instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of
information. Send comments regarding the burden estimate or any other aspect of this collection of information, including suggestions for
reducing this burden, to the Office of Management and Budget, Paperwork Reduction Project (0348-0044), Washington, DC 20503.
PLEASE DO NOT RETURN YOUR COMPLETED FORM TO THE OFFICE OF MANAGEMENT AND BUDGET.
SEND IT TO THE ADDRESS PROVIDED BY THE SPONSORING AGENCY.
General Instructions
This form is designed so that application can be made for funds
from one or more grant programs. In preparing the budget,
adhere to any existing Federal grantor agency guidelines which
prescribe how and whether budgeted amounts should be
separately shown for different functions or activities within the
program. For some programs, grantor agencies may require
budgets to be separately shown by function or activity. For other
programs, grantor agencies may require a breakdown by function
or activity. Sections A, B, C, and D should include budget
estimates for the whole project except when applying for
assistance which requires Federal authorization in annual or
other funding period increments. In the latter case, Sections A, B,
C, and D should provide the budget for the first budget period
(usually a year) and Section E should present the need for
Federal assistance in the subsequent budget periods. All
applications should contain a breakdown by the object class
categories shown in Lines a-k of Section B.
Section A. Budget Summary Lines 1-4 Columns (a) and (b)
For applications pertaining to a single Federal grant program
(Federal Domestic Assistance Catalog number) and not requiring
a functional or activity breakdown, enter on Line 1 under Column
(a) the Catalog program title and the Catalog number in Column
(b).
For applications pertaining to a single program requiring budget
amounts by multiple functions or activities, enter the name of
each activity or function on each line in Column (a), and enter the
Catalog number in Column (b). For applications pertaining to
multiple programs where none of the programs require a
breakdown by function or activity, enter the Catalog program title
on each line in Column (a) and the respective Catalog number on
each line in Column (b).
For applications pertaining to multiple programs where one or
more programs require a breakdown by function or activity,
prepare a separate sheet for each program requiring the
breakdown. Additional sheets should be used when one form
does not provide adequate space for all breakdown of data
required. However, when more than one sheet is used, the first
page should provide the summary totals by programs.
Lines 1-4, Columns (c) through (g)
For new applications, leave Column (c) and (d) blank. For each
line entry in Columns (a) and (b), enter in Columns (e), (f), and
(g) the appropriate amounts of funds needed to support the
project for the first funding period (usually a year).
For continuing grant program applications, submit these forms
before the end of each funding period as required by the grantor
agency. Enter in Columns (c) and (d) the estimated amounts of
funds which will remain unobligated at the end of the grant
funding period only if the Federal grantor agency instructions
provide for this. Otherwise, leave these columns blank. Enter in
columns (e) and (f) the amounts of funds needed for the
upcoming period. The amount(s) in Column (g) should be the
sum of amounts in Columns (e) and (f).
For supplemental grants and changes to existing grants, do not
use Columns (c) and (d). Enter in Column (e) the amount of the
increase or decrease of Federal funds and enter in Column (f) the
amount of the increase or decrease of non-Federal funds. In
Column (g) enter the new total budgeted amount (Federal and
non-Federal) which includes the total previous authorized
budgeted amounts plus or minus, as appropriate, the amounts
shown in Columns (e) and (f). The amount(s) in Column (g)
should not equal the sum of amounts in Columns (e) and (f).
Line 5 - Show the totals for all columns used.
Section B Budget Categories
In the column headings (1) through (4), enter the titles of the
same programs, functions, and activities shown on Lines 1-4,
Column (a), Section A. When additional sheets are prepared for
Section A, provide similar column headings on each sheet. For
each program, function or activity, fill in the total requirements for
funds (both Federal and non-Federal) by object class categories.
Line 6a-i - Show the totals of Lines 6a to 6h in each column.
Line 6j - Show the amount of indirect cost.
Line 6k - Enter the total of amounts on Lines 6i and 6j. For all
applications for new grants and continuation grants the total
amount in column (5), Line 6k, should be the same as the total
amount shown in Section A, Column (g). Line 5. For
supplemental grants and changes to grants, the total amount of
the increase or decrease as shown in Columns (1)-(4), Line 6k
should be the same as the sum of the amounts in Section A,
Columns (e) and (f) on Line 5.
Line 7 - Enter the estimated amount of income, if any, expected
to be generated from this project. Do not add or subtract this
amount from the total project amount, Show under the program
SF-424A (Rev. 7-97) Page 3
-------
INSTRUCTIONS FOR THE SF-424A (continued)
narrative statement the nature and source of income. The
estimated amount of program income may be considered by the
Federal grantor agency in determining the total amount of the
grant.
Section C. Non-Federal Resources
Lines 8-11 Enter amounts of non-Federal resources that will be
used on the grant. If in-kind contributions are included, provide a
brief explanation on a separate sheet.
Column (a) - Enter the program titles identical to
Column (a), Section A. A breakdown by function or
activity is not necessary.
Column (b) - Enter the contribution to be made by the
applicant.
Column (c) - Enter the amount of the State's cash and
in-kind contribution if the applicant is not a State or
State agency. Applicants which are a State or State
agencies should leave this column blank.
Column (d) - Enter the amount of cash and in-kind
contributions to be made from all other sources.
Column (e) - Enter totals of Columns (b), (c), and (d).
Line 12 - Enter the total for each of Columns (b)-(e). The amount
in Column (e) should be equal to the amount on Line 5, Column
(f), Section A.
Section D. Forecasted Cash Needs
Line 13 - Enter the amount of cash needed by quarter from the
grantor agency during the first year.
Line 14 - Enter the amount of cash from all other sources needed
by quarter during the first year.
Line 15 - Enter the totals of amounts on Lines 13 and 14.
Section E. Budget Estimates of Federal Funds Needed for
Balance of the Project
Lines 16-19 - Enter in Column (a) the same grant program titles
shown in Column (a), Section A. A breakdown by function or
activity is not necessary. For new applications and continuation
grant applications, enter in the proper columns amounts of Federal
funds which will be needed to complete the program or project over
the succeeding funding periods (usually in years). This section
need not be completed for revisions (amendments, changes, or
supplements) to funds for the current year of existing grants.
If more than four lines are needed to list the program titles, submit
additional schedules as necessary.
Line 20 - Enter the total for each of the Columns (b)-(e). When
additional schedules are prepared for this Section, annotate
accordingly and show the overall totals on this line.
Section F. Other Budget Information
Line 21 - Use this space to explain amounts for individual direct
object class cost categories that may appear to be out of the
ordinary or to explain the details as required by the Federal grantor
agency.
Line 22 - Enter the type of indirect rate (provisional, predetermined,
final or fixed) that will be in effect during the funding period, the
estimated amount of the base to which the rate is applied, and the
total indirect expense.
Line 23 - Provide any other explanations or comments deemed
necessary.
SF-424A (Rev. 7-97) Page 4
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SF 424B Assurances—Non-Construction Programs
http://www.epa.gov/ogd/AppKit/application.htm
ASSURANCES - .NON-CONSTRUCTION PROGRAMS
OMB Approval No. 0348-0040
Public reporting burden for this collection of information is estimated to average 15 minutes per response, including time for reviewing
instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of
information. Send comments regarding the burden estimate or aay other aspect of this collection of information, including suggestions for
reducing this burden, to the Office of Management and Budget. Paperwork Reduction Project (0348-0040). Washington, DC 20503.
PLEASE DO NOT RETURN YOUR COMPLETED FORM TO THE OFFICE OF MANAGEMENT AND BUDGET.
SEND IT TO THE ADDRESS PROMDED BY THE SPONSORING AGENCY.
NOTE: Certain of these assurances may not be applicable to your project or program. If you have questions, please contact the
awarding agency. Further, certain Federal awarding agencies may require applicants to certify to additional assurances.
If such is the case, you will be notified.
As the duly authorized representative of the applicant. I certify that the applicant:
1 . Has the legal authority to apply for Federal assistance and the
institutional, managerial and financial capability (including
funds sufficient to pay the non-Federal share of project cost)
to ensure proper planning, management and completion of
the project described in this application.
2. Will give the awarding agency, the Comptroller General of
the United States and. if appropriate, the State, through any
authorized representative, access to and the right to examine
all records, books, papers, or documents related to the award:
and will establish a proper accounting system in accordance
with generally accepted accounting standards or agency
directives.
3. Will establish safeguards to prohibit employees from using
their positions for a purpose that constitutes or presents the
appearance of personal or organizational conflict of interest.
or personal gain.
4. Will initiate and complete the work within the applicable
time frame after receipt of approval of the awarding
agency.
5- Will comply with the Intergovernmental Personnel Act of
1970 (42 U.S.C. 4728-4763) relating to prescribed standards
for merit systems for programs funded under one of the 1°
statutes or regulations specified in Appendix A of OPM's
Standards for a Merit System of Personnel Administration (5
C.F.R. 900. Subpart F)."
6. Will comply with all Federal statutes relating to
nondiscrimination. These include, but are not limited to: (a)
Title VI of the Civil Rights Act of 1964 (P.L. 88-352} which
prohibits discrimination on the basis of race, color or
national origin: (b) Title DC of the Education Amendments of
1972. as amended (20 U.S.C. 1681-1683. and 1685-1686).
which prohibits discrimination on the basis of sex: (c)
Section 504 of the Rehabilitation Act of 1973. as amended
(29 U.S.C. 794). which prohibits discrimination on the
basts of handicaps: (d) the Ase Discrimination Act of
1975. as amended (42 U.S.C 6101-6107). which
prohibits discrimination of the basis of age: (e) the Drag
Abuse Office and Treatment Act of 1972 (P.L. 92-255).
as amended, relating to nondiscrimination on the basis of
drug abuse: (f) the Comprehensive Alcohol Abuse and
Alcoholism Prevention. Treatment and Rehabilitation Act
of 1970 (P.L. 91-616). as amended, relating to
nondiscrimination on the basis of alcohol abuse or
alcoholism; (g) 523 and 527 of the Public Health Sen-ice
Act of 1912 (42 U.S.C. 290 dd-3 and 290 ee-3), as
amended, relating to confidentiality of alcohol and drug
abuse patient records; (h) Title VH of the Civil Rights Act
of 1968 (42 U.S.C. 3601 et seq.). as amended, relating to
nondiscrimination in the sale, rental or financing of
housing: (i) any other nondiscnmination provisions in
the specific statute(s) under which application for Federal
assistance is being made; and (j) the requirements of any
other nondisciimination statutes) which may apply to the
application.
7. Will comply, or has already complied, with the
requirements of Titles H and TTT of the Uniform
Relocation Assistance and Real Property Acquisition
Policies Act of 1970 (P.L. 9 1-646) which provide for fair
and equitable treatment of persons displaced or whose
property is acquired as a result of Federal or federally-
assisted programs. These requirements apply to all
interests in real property acquired for project purposes
regardless of Federal participation in purchases.
8. Will comply, as applicable, with provisions of the Hatch
Act (5 U.S.C. 1501-1508 and 7324-7328) which limit the
political activities of employees whose principal
employment activities are funded in whole or in part with
Federal funds.
Previous Edition Usable
Authorized for Local Reproduction
Standard Form 424B (Rev 4-2012)
Prescribed bv OMB Circular A-102
EPA I ribai, U.S. Territories and Insular Areas Administrative and Financial Guidance for Assistance Agreements
Last Updated September 2013 page 20 of 519
-------
SF 424C Budget Information - Construction Programs
http://www.epa.gov/ogd/forms/forms.htm
BllDCET INFORMATION - Construction Programs
COST cLAssi! K'AiioN
1. Administrative and legal exf>enses
2. Land strueiures, rights-ot-\vay. appraisals, ete.
1 Relocation expenses and paymem
4. .Architectural and engineering fees
5. Other architectural and engineering fees
6. Project inspection fees
7. Site \vork
H. SVmolstion mid rejrsoval
9. Construction
10. Equipment
1 1. Miscellaneous
12. St'BTOTAI. (sum of lines 1-11)
1 3. Contingencies
14. SrHTOTAI.
15, Project (program) income
16. TOTAL PROJECT COS TS (suNrad .'; 15 from
= 14)
a I.X.,K'<«
S
S
s
s
s
s
s
s
s
s
s
s
s
s
s
s
t C0*t* No! Ajl,?wi*We to
s
s
s
s
s
s
s
s
$
s
s
s
s
s
s
s
'r'.Uiiimvii bi
$
S
s
s
s
s
s
s
s
s
s
s
s
s
s
$
FEDERAL FUNDING
1 "?. Federal assistance requested, calculate as follows:
(Consul! Federal agency for Federal percentage share.) Enter eligible costs from line 16c Multiply
V O..
Enter the resulting Federal share.
$
Previous Kdition I sable
Aulhomed for Local
Standard Form 424C (Rev 4-2012)
f^rwcnMd K CM3 Cirafer A 10 J
-------
INSTRUCTIONS FOR THE SF-424C
Public repotting burden for this collection of information is estimated to average 1KH minutes per response, including time for reviewing
instructions, searching existing data sources, gathering and maintaining the tlala needed, and completing and reviewing the collection of
information. Send comments regarding the burden estimate or any other aspect of this collection of information, including suggestions for
reducing (his burden, to the Office of Management and Budget, Paperwork Reducdon Project (0348-W41). Washington, DC 2(>503.
PLEASE DO NOT RETl'RN YOUR COMPLETED FORM TO THE OFFICE OF MANAGEMENT AND BUDGET.
SEND IT TO THE ADDRESS PROVIDED BY TILE SPONSORING AGENCY.
This sheet is to be used for the following types of applications; (1) "New" (means a new j previously unfunded] assistance award); (2)
"Continuation" (means funding in a succeeding budget period which stemmed from a prior agreement to fund); and (3) "Revised" (means any
changes in the Federal Government's financial obligations or contingent liability from an existing obligation). If there is no change in the
award amount there is no need to complete this form Certain Federal agencies may require only an explanatory letter to effect minor (no
cost) changes. If you have questions, please contact the Federal agency.
Column b - If this is an application for a "New" project, enter
that portion ol the cost oi each item in Column a. which is nol
allowable for Federal assistance. Contact the Federal agency
for assistance in determining the allowabiluy of specific costs.
if this application entails a change to an existing award, enter
the adjustment [•- or (-)] to the previously approved costs (from
column a.) Reflected m this application.
Column - This is the net of lines 1 through 16 in columns "a."
and "b."
Lme 1 - Hnter estimated amounts needed to cover
administrative expenses. Do nol include costs which arc
related to the normal function.'; of government. Allowable legal
costs are generally only those associated with the purchases of
land which is allowable tor Federal participation and certain
services in support of construction of the propecl.
Lme 2 - Hnter estimated site and nght(s)-of-way acquisition
costs (this includes purchase, lease, and/or casements).
Line 3 - Hnter estimated costs related to relocation advssory
assistance, replacement housing, relocation payments; to
displaced persons and businesses, etc.
Line 4 - Hnter estimated basic engineering ices related to
construction (this includes start-up sen'ices and preparation of
pro|eci performance work plan).
Line 5 - Hnter estimated engineering costs, such as surveys, tests,
soil borings, etc.
Line 6 - Hnter estimated engineering inspection costs.
Line 7 - Kntcr estimated cols oi site preparation and restoration
which are not included in the baste construction contract.
Line 9 - Enter estimated cost of the construction contract.
Line 10 - Enter estimated cost of office, shop, laboratory, safely
equipment, etc. to be used at the facility, if such costs are not
included in ihc construction contact.
1 .me 1) - Hnter estimated miscellaneous costs.
Line 12 - Total of items 1 through 11.
1 .me 13 -1 inter estimated contingency cots. (Consult the Federal
agency lor the percentage oi the estimated construction costs to
use.)
Line 14 - Enter the total oi lines 12 and 13.
Line 15 - Enter estimated program income to be earned during
the grant period, e.g., salvaged materials, etc.
Line 1C - Subtract line 15 from line 14,
Lme 17 - This block is for the computation of the Federal share.
Multiply the lota! allowable project costs from line 16, column
"c.:' by the Federal percentage share (this may be up to 100
percent: consult Federal agency for Federal percentage share) and
enter the product on line 17.
SF-424C (Rev 4-2012) Back
-------
SF 424D Assurances—Construction Programs
http://www.epa.gov/ogd/forms/forms.htm
OMB Approval No. 034S-OQ42
ASSURANCES - CONSTRUCTION PROGRAMS
Public reporting burden for this collection of information is estimated to average 15 minutes per response, including time for reviewing
instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of
information. Send comments regarding the burden estimate or any other aspect of this collection of information, including suggestions for
reducing this burden, to the Office of Management and Budget, Paperwork Reduction Project (0348-01542), Washington, DC 20SU3.
PLKASK IK) NOT RKTt'RIS YOUR COMI'I.KTKI) FORM TO TIIK OKF1CK OF MAINAGKMFNT AND Ill.'IK'.KT.
SUM) IT TO TI IK A.DDKKSS PROVIDFJ) BY THE SR)NSORIM; AGKNCY.
XOTH: CerUnn of these assurances may not he applicable to your project or program If you have questions, please contact the Awarding
Agency. Further, certain Federal assistance awarding agencies may require applicants to certiiy to additional assurances. If such is the case,
you will be notified.
As the duiy authorized representative of the applicant, I certify that the applicant:
Has the legal authority to apply for Federal
assistance, and the institutional, managerial and
financial capability (including funds sufficient
to pay the non-Federal share of project costs) to
ensure proper planning, management and
completion of the project described in this
application.
Will give the awarding agency, the Comptroller
General of the United Stales and. if appropriate,
the State, through any authorized
representative, access to and the right to
examine all records, books, papers, or
documents related to the assistance: and will
establish a proper accounting system in
accordance with generally accepted accounting
standards or agency directives.
Will not dispose of, modify the use of, or
change the terms of the real property title, or
other interest in the site and facilities without
permission and instructions from the awarding
agency. Will record the Federal interest in the
title of real property in accordance with
awarding agency directives and will include a
covenant in the title of real property acquired in
whole or in part with Federal assistance funds
to assure non-discrimination during the useful
life of the project.
Will comply with the requirements of the
assistance awarding agency with regard to the
drafting, review and approval of construction
plans and specifications.
Will provide and maintain competent and
adequate engineering supervision at the
construction site to ensure that the complete
work conforms with the approved plans and
8. Will comply with the Intergovernmental
Personnel Act of 1970 (42 U.S.C. 4728-4763)
relating to prescribed standards for merit
systems for programs funded under one of the
19 statutes or regulations specified in
Appendix A of OPM's Standards for a Merit
System of Personnel Administration (5 C.F.R.
900, Subpart F).
9. Will comply with the I .cad-Based Paint
Poisoning Prevention Act (42 U.S.C. 4801 et
seq.) which prohibits the use of lead-based
paint in construction or rehabilitation of
residence structures.
10. Will comply with all Federal statutes relating
to non-discrimination, These include but are
not limited to: (a) Title VI of the Civil Rights
Act of 1964 (P.I,. 88-352) which prohibits
discrimination on the basis of race, color or
national origin: (b) Title IX of the Education
Amendments of 1972, as amended (20 U.S.C.
1681-1683. and 1685-1686). which prohibits
discrimination on the basis of sex; (c) Section
504 of the Rehabilitation Act of 1973. as
amended (29 U.S.C. 794), which prohibits
discrimination on the basis of handicaps; (d)
the Age Discrimination Act of 1975, as
amended (42 U.S.C. 6101-6107). which
prohibits discrimination on the basis of age;
(e) the Drug Abuse Office and Treatment Act
of 1972 (P.L. 92-255), as amended, relating to
nondiscrimination on the basis of drug abuse;
(f) the Comprehensive Alcohol Abuse and
Alcoholism Prevention, Treatment and
Rehabilitation Act of 1970 (P.L. 91-616), as
amended, relating to nondiscrimination on the
basis of alcohol abuse or alcoholism; (g) 523
and 527 of the Public Health Service Act of
-------
specifications and will furnish progress reports
and such other information as may be required
by the assistance awarding agency or State.
Will initiate and complete the work within the
applicable time frame after receipt of approval
of the awarding agency.
Will establish safeguards to prohibit employees
from using their positions for a purpose that
constitutes or presents the appearance of
personal or organizational conflict of interest.
or personal gain.
1912 (42 U.S.C. 290 dd-3 and 290 ee-3), as
amended, relating to confidentiality of alcohol
and drug abuse patient records; (h) Title VIII
ofthe Civil Rights Act of 1968 (42 U.S.C.
3601 et seq.). as amended relating to
nondiscrimination in the sale, rental or
financing of housing; (i) any other
nondiscrimination provisions in the specific
slatute(s) under which application for Federal
assistance is being made; and (j) the
requirements of any other nondiscrimination
statute(s) which may apply to the application.
11. Will comply, or has already complied, with the
requirements of Titles II and III of the Uniform
Relocation Assistance and Real Properly
Acquisition Policies Act of 1970 (P.I,. 91-646)
which provide for fair and equitable treatment
of persons displaced or whose property is
acquired as a result of federal and federally-
assisted programs. These requirements apply to
all interests in real property acquired for project
purposes regardless of Federal participation in
purchases.
12. Will comply with the provisions ofthe Hatch
Act (5 U.S.C. 1501-1508 and 7324-7328)
which limit the political activities of employees
whose principal employment activities are
funded in whole or in part with Federal funds.
13. Will comply, as applicable, with the provision
ofthe Davis-Bacon Act (40 U.S.C. 276a to
276a-7), the Copcland Act (40 U.S.C. 276c and
18 U.S.C.874), and the Contract Work Hours
and Safety Standards Act (40 U.S.C. 327-333)
regarding labor standards of federally assisted
construction sub-agreements.
14. Will comply with flood insurance purchase
requirements of Section 102(a) ofthe Flood
Disaster Protection Act of 1973 (P.L. 93-234)
which requires recipients in a special flood
hazard area to participate in the program and to
purchase flood insurance if the total cost of
insurable construction and acquisition is
Si 0.000 or more.
15, Will comply with environmental standards
which may be prescribed pursuant to the
following: (a) institution of environmental
quality control measures under the
National Environmental Policy Act of 1969
(P.L. 91-
190) and Executive Order (EO) 11514; (b)
notification of violating facilities pursuant to
EO
11738; (c) protection of wetlands pursuant to
EO
11990; (d) evaluation of flood hazards in
flood plains
in accordance with EO 11988; (e) assurance
of project
consistency with the approved State
management
program developed under the Coastal Zone
Management Act of 1972 (16 U.S.C. 1451 et
seq.);(f)
conformity of Federal actions to State (Clean
Air)
Implementation Plans under Section 176(c)
of the
Clean Air Act of 1955, as amended (42
U.S.C. 7401 et
seq.); (g) protection of underground sources
of
drinking water under the Safe Drinking
Water Act of
1974. as amended (P.L. 93-523); and (h)
protection of
endangered species under the Endangered
Species Act
of 1973, as amended (P.L. 93-205).
16. Will comply with the Wild and Scenic Rivers
Act of 1968 (16 U.S.C, 1271 et seq,) related
to protecting components or potential
components ofthe national wild and scenic
rivers system.
17. Will assist the awarding agency in assuring
-------
compliance with Section 106 of the National
Historic Preservation Act of 1966. as
amended (16 U.S.C. 470). EO 11593
(identification and protection of historic
properties), and the .Archaeological and
Historic Preservation Act of 1974 (16 U.S.C.
469a-l et seq.).
18. Will cause to be performed the required
financial and compliance audits in accordance
with the Single Audit Act Amendments of
1996 and OMB Circular No. A-133, "Audits
of Stales, Local Governments, and Non-Pro fit
Organizations."
19. Will comply with all applicable requirements
of all other Federal laws, executive orders,
regulations, and policies governing this
program.
SIGNATURE OF AUTHORIZED CERTIFYING
OFFICIAL
TITLE
APPLICANT ORGANIZATION
DATE SUBMITTED
Previous Edition Usable
Authorised far Local Reproduction
Standard Form 424D (Rev 4-2012)
Prescribed by OMB Circular A-102
EPA Tribal, U.S. Territories and Insular Areas Administrative and Financial Guidance for Assistance Agreements
Last Updated September 2013 page 25 of 519
-------
V;-*
http://www.epa.gov/ogd/AppKit/application.htm
FORK!
Approved By OMB: N'o. 2030-0020 Expires 0430-20! 2
Prcaward Compliance Review Report for
All Applicants and Recipients Requesting KPA Financial Assistance
Note. ^
AppficantTRecIpient (
Is the applicant currently receiving FPA assistance'1
IV. List ail civil rights lawsuits and admimstrative complaints decided against the applicant/recipient witlun ihe hist your that allege
discrimination based on race, color, national ongiti, sex, a$c, or disability and enclose a copy of all decisions. Please describe all corrective
action taken. (Ho not include employment complaints not covered by -10 C.F.R. I'arts s and 7. See instructions on reverse side.)
U.st all civil rights compliance reviews of the applicant/recipient conducted by any agency within the last two years and enclose a copy of the
review and any decisions, orders^ or agreements based on the review. Please describe any corrective action taken. (JO C.F.R. $ 7.80{c)(3))
VI. is the applicant requesting EPA assistance for new construction? If no, proceed to VI!, if yes, answer fa) and'or (h) below.
Yes " No
If the grant is for new construction, will al! new facilities or alterations to existing facilities be designed and constructed to be readily
accessible to and usable by persons with disabilities? If yes, proceed to VII; if no, proceed to VKb). Yes No
b. If the grant is for new construction ami l!te new facilities or alterations lo existing facilities wiU not be readily accessible to and usable by
persons with disabilities, explain how a reeulatory exception (40 C.F.R. $ 7.70) applies. Yes jjo
a. Do the methods of notice accommodate those with impaired vision or hearing'? Yes No
Is the notice posted in a prominent place in the applicant's offices or facilities or7 for education programs and activities, in appropriate
periodicals and other written commumcatoQits? Yes No
c. Does the notice identify' a designated civil rights coordinator? Yes j\jo
Does the applicant/recipient maintain demographic data on the race, color, rational orient sex age, or handicap of the population it serves?
("W C.F.R. 3 T85silujn, mailing address, e-mail address, tax nianberj and lclcj)honc
number of the cksignatecl coordinator.
If the applicant/recipient is an edueation program or activity, or has 15 or more employees, has it adopted grievance procedures that assure
the prompt and fair resolution of complaints thai allege a violation of-10 C.F.R. Parts .S and 7? Provide a legal ci ration or Internet address
for, or a copy of, the procedures.
for the Applicant/Recipient
I certify that the statements I have made on tliis form and all attachments diereto are true, accurate and complete. I acknowledge that any knowingly
false or misleading statement may be punishable by fine or imprisonment or both under applicable law. I assure that I will fully comply with all
applicable civil rights statutes and HP A regulations.
A. Signature of Authorised Official
R. Title of Authuri/cd Official
C. Dale
For the U.S, Environmental Protection Agency
I have reviewed Ihe inEbnna!ion provided by the applicant/recipient and hereby certify ihat the applicant-1'reei pi en! has submit Isd all preaward
compliance uifcjnnahoii required by 4(3 C.F.R. Paris .^ tincl 7; tbal based! on the nifonnalioii siibmiliecl, this ajjjihcalion saiisfies the prcaward provisions
of-10 C.F.R, Parts 5 and ". and tltat the applicant has given assurance that it will fully comply with all applicable civil rights statutes and EPA
regulations.
A. Signature of Authorized KPA Official
R. Title of Aufhnrircd EPA Official
EPA Form 4700-4 (Rev. 04''2009). Previous editions are obsolete.
-------
Instructions lor EPA FORM 4700-4 (Rev. 047009)
General
Items
Recipients of Federal financial assistance from the U.S.
Environmental Protection Agency must comply with the following
statutes and regulations.
Title VI of the Civil Rights Acts of! 96*1 provides thai no person in
lite United States shall, cm the grounds of race, color, or nalioiiat
origin, be excluded from |»irlicipa1ion in, he denied the benefits of, or
bo subjected to discrimination under any program or activity
receiving Federal financial assistance. The Acl goes on to explain
that the statute shall not he construed to authorize action with respect
to any employment practice of any employer, employment agency, or
labor organization (except where the primary objective of the federal
financial assistance is to provide employment).
Section 13 of the 1972 Amendments to the Federal Water Pollution
Control Act provides that no person in the United States shall 011 the
ground of sex, be excluded from participation in, be desiied the
benefits of, or be subjected to discrimination under lite Federal Waler
Pollution Conrroi Act, as amended- Krnploymcnt discrimination on
tlu.1 basis of sex is proliihited in all such programs or activities.
Section 504 of the Rehabilitation Act of 1973 provides that iu>
otherwise qualified individual with a disability in the United States
shall solely by reason of disability IK excluded from |xirlicipaho3s in,
be denied the benefits of, or be subjected to discrimination under any
program or activity receiving Federal financial assistance.
Employment discrimination on the basis of disalnlity is prohitwled in
all such programs or activities.
I? provides that no person on the
"Applicant" means any entity that files an application or unsolicited
proposal or otherwise requests EPA assistance. *IQ C.F.R. $£5.105,
"Recipient" means ai
receive EPA
basis of age shall be excluded from participation under any program
or activity receiving Federal financial assistance. Employment
discrimination is not covered. Age cHscrimination in employment is
prohibited by the Age Discrimination in Employment Act
administered by the Equal Employment Opportunity Commission.
Title IX of the Hducation Amendments of 6972 provides that no
person in the United States on the basis of sex shall be excluded from
participation in, be denied the benefits of, or be subjected lo
discrimination under any education program or activity receiving
Federal financial assistance. Employment discrimination on the basis
of sex is prohibited in all such education programs or activities.
Note: an education program or activity is not limited to only those
conducted by a formal institution.
40 C.F.R. Pait 5 implements Title IX of the Education Amendments
of 1972.
4Q C.F.R. Part 7 implements Title VI of the Civil Rights Act of 1964,
Section 13 of the 1972 Amendment* to Ihe Federal Water Pollution
Control Act, and Section 50J of The Rehabilitation Act of 1973.
The Executive Order 13166 (E.G. 13166] entitled; "Improving
Access to Services for Persons with Limited Knglish Proficiency"
requires Federal agencies work to ensure that recipients of Federal
financial assistance provide meaningful access to their LEP
applicants and beneficiaries.
f means any entity, other than applicant, which will actually
*A assistance. >\Q C.F.R. ££ 5.105, 7.25.
"Civil rights lawsuits and administrative complaints" means any
lawsuit or administrative complaint alleging discrimination on the
basis of race, color, national origin, sex, age, or disability pending or
decided against the applicant and/or entity' wliich actually benefits
from the grant, but excluding employment complaints not covered by
40 C.F.R. Parts 5 and 7, For example, if a city is the named applicant
birt the grant will actually benefit the Department of Sewage, civil
rights lawsuits involving both the city and the Department of Sewage
should be listed.
"Civil rights compliance review" means any review assessing the
applicant's author recipient's compliance with laws prohibiting
thscriii dilation on the basis of race, color, national origin, sex, age, or
disability.
Submit tiiis form with the original ajid required copies of applications,
requests for extensions, requests for increase of funds, etc Updates of
information are all that are required after the initial application
submission.
If any item is not relevant to the project for which assistance is
requested, write "NA" for "Not Applicable."
In the event applicant is uncertain about how to answer any questions,
EPA program officials should be contacted for clarification.
* Questions VI1 — XI are for informational use only arid will not affect
tin applicant's grant status. However, applicants should answer all
questions on this form. MG C.F.R. Parts 5 and 7).
*"" Note: Signature appears in the Approval Section of Ihe HPA
Comprehensive Administrative Review For Grants;'Cooperative
Agreements & Continuation Supplemental Awards form.
Approval indicates, in the reviewer's opinion, questions 1 - VI of Form
47QO-4 comply with the preaward administrative requirements for L'FA
assistance.
"Burden Disclosure Statement*
EPA estimates public reporting burden for the preparation of this form
to average 30 minutes per response. Tliis estimate includes the time
tor reviewing instructions, gat tiering and maintaining the data needed
and completing and reviewing the form Send comments regarding the
burden estimate, including suggestions for reducing this burden, to
U.S. EPA, Ami: Collection Strategies. Division (MC 2&22T), Office of
Information Collection, ! 200 Pennsylvania Ave., NW, Washington,
D.C. 20460; and to the Office of Information and Regulatory Affairs,
Office of Management and Budget, Washington, D.C. 20503.
The information on this form is required to enable the U.S.
Environmental Protection Agency to determine whether applicants and
prospective recipients are developing projects, programs and activities
on a nondiscriminatory basis as required by the above stahrtes and
regulations.
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pi
http://www.epa.gov/ogd/AppKit/application.htm
DISCLOSURE OF LOBBYING ACTIVITIES
Complete this form to disclose lobbying activities pursuant to 31 U.S.C. 1352
(See reverse for public burden disclosure.)
Approved by OMB
0348-0046
1 . Type of Federal Action: 2. Status of Federal Action: 3. Report Type:
j a. contract I la. bid/of
' b. grant ' 'b. initial
c. cooperative agreement c. post-t
d. loan
e. loan guarantee
f. loan insurance
4. Name and Address of Reporting Entity:
Q Prime I I Subawardee
Tier , if known :
Congressional District, if known:
6. Federal Department/Agency:
8. Federal Action Number, if known:
10. a. Name and Address of Lobbying Registrant
(if individual, last name, first name, Ml)'.
11-, , , - , J _ , , ' '. . -. .
q t * 1 J •>• ' !
! 1)1 1
J I 1 t \ (• i
r
far/application j a. initial filing
award For Material Change Only:
year quarter
date of last report
5. If Reporting Entity in No. 4 is a Subawardee, Enter Name
and Address of Prime:
Congressional District, if known:
7. Federal Program Name/Description:
CFDA Number, if applicable:
9. Award Amount, if known:
$
b. Individuals Performing Services (including address if
different from No. 10a)
(last name, first name. Ml):
Siqnature:
Print Name:
Title:
Telephone No.: Date:
Federal Use Only: Authorized for Local Reproduction
Standard Form ILL (Rev. 4/2012
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INSTRUCTIONS FOR COMPLETION OF SF-LLL, DISCLOSURE OF LOBBYING ACTIVITIES
This disclosure form shall be comptetedby the reporting entity, whether subawardeeor prime Federal recipient, at the initiation or receipt of a covered Federal
action, or a material change to a previous filing, pursuant to tide 31 U.S.C. section 1352. The filing of a form is required for each payment or agreement to make
paymentto any lobbying entity for influencing or attemptingto influence an officer or employee of any agency, a Member of Congress, an officer or employeeof
Congress, or an employeeof a Member of Congress in connection with a coveredFederalaction. Complete ail items that applyfor both the initial filing and material
change report. Refer to trie implementing guidance pubfished by the Office of Management and Budget for additional information,
1. Identify the type of covered Federal action for which lobbying activity is and/or has been secured to influence the outcome of a covered Federal action.
2, Identify the status of the covered FederaS action.
3. identify the appropriateclassiflcation of this report. If this is a followup report caused by a material change to the information previously reported, enter
the year and quarter in which the change occurred. Enter the date of Ehe last previously submitted report by this reporting entity for this covered Federal
action
4. Enter the full name, address. ciSy, State and zip code of the reporting entity. Include Congressional District, if known. Check the appropriate classification
of the reporting entity that designatesif it fs, or expectsto be. a prime or subaward recipient. Identify the tier ofthe subawardee,e.g.( the first subawardee
of the prime is the 1st tier. Subawards include but are not limited to subcontracts, subgrants and contract awards under grants.
5. If the organi2atton filing the report in item 4 checks "Subawardee,"then enter the full name, address, city, State and zip code of the prime Federal
recipient. Include Congressional District, if known.
8. Enter the name of the Federal agency making the award or Hoan commitment. Include at least one organizationallevel below agency name, if known. For
example. Department of Transportation, United States Coast Guard.
7 Enter the Federal program name or description for the covered Federal action (item 1). If known, enter the full Catalog of Federal Domestic Assistance
(CFDA) number for grants, cooperative agreements, loans, and loan commitments.
8. Enter the mosE appropriate Federal identifying number avaiEablefor the Federal action identified in item 1 (e.g.. Request for Proposal (RFP) number;
Invitation for Bid (IFB) number; grant announcement number; the contract, grant, or loan award number; the application/proposal control number
assigned by the Federal agency). Include prefixes, e.g., "RFP-DE-90-GQ1."
9. For a covered Federal action where there has been an award or loan commitment by the Federal agency, enter the Federal amount of the award/loan
commitment for the prime entity identified in item 4 or 5.
10. (a) Enter the full name, address, city, State and 2ip code of the lobbying registrant under the Lobbying Disclosure Act of 1995 engaged by the reporting
entity identified in item 4 to influence the covered Federal action,
(b) Enter the full names of the indivtduaf(s) performing services, and include full address if different from 10 (a). Enter Last Name, First Name, and
Middle Initial (Mi).
11. The certifying official shall sign and date the form, print his/her name, title, and telephone number.
According to the Paperwork Reduction Act, as amended, no persons are required to respond to a collection of information unless it displays a valid OMB Control
Number. The valid OMB control number (OF this information collection is OMB No. 0348-0046. Public reporting burden for this collection of information is
estimated to average 10 minutes per response, including time for reviewing instructions, searching existing data sources, gathering and maintaining the data
needed, and completing and reviewing the collection of information. Send comments regarding the burden estimate or any other aspect of this collection of
information, including suggestions for reducing ttiis burden, to the Office of Management and Budget, Paperwork Reduction Prefect (0346-0046), Washington
DC 20503.
EPA Tribal, U.S. Territories and insular Areas Administrative and Financial Guidance for Assistance Agreements
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See the Samples and Examples section of the Appendix for an example.
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http://www.epa.Qov/compliance/nepa/epacompliance/saaptrammci/mdex.html
EPA has prepared a handbook, Environmental Review Guide for Special Appropriation Grants (April.
2008) (pdf). which presents an overview to EPA's environmental review process and the levels of
analysis associated with that review. This handbook and related appendices are designed for grant
applicants who are applying for project funds that were authorized by Congress and for which the
grant authority is the Agency's annual appropriations acts. The handbook contains background
information, guidelines, checklists, other tools, and references that will assist grant applicants in
understanding requirements under NEPA. The handbook should help applicants understand the
environmental review process required under NEPA, as well as how to assist EPA during this review.
EPA has also developed an online training course (see link above) regarding the handbook.
Please contact EPA if you would like a CD version of the handbook or the training program mailed to
you.
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When submitting your application for Federal assistance, please observe the following steps
pertaining to the intergovernmental review process.
1. Identify whether or not the respective program is eligible for intergovernmental review
under Executive Order (E.O. 12372. A listing of EPA programs which are eligible for
intergovernmental review can be found in the April 29, 2004 Federal Register (69 FR
23500). The Catalog of Federal Domestic Assistance (CFDA) also lists programs eligible for
intergovernmental review under E.O. 12372. The CFDA listing can be found at
http://www.cfda.gov, under "Search for Assistance Programs," then "By Programs Requiring
Executive Order 12372 Review."
2. After confirming the program's intergovernmental review eligibility, indicate where your
application is subject to the process by responding to the E.O. 12372 question on the SF-424,
Application for Federal Assistance.
3. If a program is eligible for the intergovernmental review process, you must respond
accordingly on the application, and forward a copy of your completed application to your
State Single-Point-of-Contact (SPOC). The official SPOC listing is located at:
http://www.whitehouse.gov/omb/grants/spoc.html. By clicking on the state name, you may
be linked to the SPOC website. Before forwarding a copy of your application, you may call
the SPOC directly to determine if that office has chosen to review the program.
4. If the SPOC has chosen not to review the program, or if your State does not have a SPOC,
you must forward a copy of your completed application to the area-wide/regional/local
planning agency (or agencies), so that they may have the opportunity to review your
application for comment. You may consult your local EPA office to obtain contact
information for the planning agency in your area.
5. Keep in mind that once you sign the SF-424, you are certifying that the SPOC or area-
wide/regional/local planning agency has received or will receive a copy of your application.
Your application might be considered deficient if a copy of your application is not forwarded
to one of those agencies.
6. The application must be sent to the SPOC or area-wide/regional/local planning agency in a
timely manner, in order for it to be reviewed before the end of the respective comment
period. Under E.O. 12372, the commend period is 60 days for new and competitive awards,
and 30 days for non-competing continuation awards.
7. If you subsequently receive comments about your application from the SPOC or area-
wide/regional/local planning agency, you should forward them immediately to the EPA
office (generally the awarding office) where you mailed your application package. Before
making a funding decision, EPA is required to consider comments made by the SPOC or
planning agency. Therefore, the awarding office may contact you to discuss concerns that
may have been raised by the SPOC or planning agency.
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Work Plan Guidance and Description is a subpart of Applicable EPA Regulations and Description.
See the Samples and Examples section of the Appendix for an example.
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Indirect Cost Rates for EPA Grants
The National Business Center Indirect Cost Rate Information URL has changed. It can now be
found at http://www.doi.gov/ibc/services/indirect cost services/Indian tribes.cfm.
May 2012
EPA's Office of Grants and Debarment has issued an Interim Grants Policy Issuance (GPI) that
provides a more flexible approach to Tribal indirect cost rate funding. To ensure Tribes are
provided adequate indirect cost funding as soon as possible, EPA is implementing the options
under the interim policy until a final version is issued after consultation with the tribes. The
current version of the GPI identifies four options for Tribes to claim indirect costs, including
using:
1) Current negotiated rate with federal cognizant agency;
2) Rate proposal submitted to federal cognizant agency within 90 days of award date but
not yet approved;
3) Flat rate of 10% of salaries and wages; or
4) Subsequent Negotiation of an IDC Rate.
To request a copy of the interim policy to review, please contact Liz January at (617) 918-8655
or Tanuarv.elizabeth@epa.gov.
Be sure to check with your EPA Regional Office
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U.S. Department of the Interior
Search
CONTACT US
Indirect Cost Services
-
The Indirect Cost Services (ICS) negotiates and issues indirect cost
rates on behalf of the federal government. Indirect costs include
expenses (such as advertising, computing, maintenance, security,
supervision, etc.) incurred in joint usage and difficult to assign to
or identify with a direct function or program. ICS services help
ensure that indirect costs paid by the U.S. Government are legally
sound, fair, and equitable.
To learn more about our indirect cost rate negotiation services, visit the links below:
• Indirect cost rate negotiation services overview
• Guidance for preparing and submitting indirect cost proposals or cost allocation plans:
o For nonprofit organizations
o For Indian tribal governments
o For insular areas, state, and local governments
• Indirect Cost Services FAQs
http://www.doi.gov/ibc/services/indirect cost services/index.cfm
EPA Tribal, U.S. Territories and Insular Areas Administrative and Financial Guidance for Assistance Agreements
Last Updated September 2013 page 35 of 519
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See the Samples and Examples section of the Appendix for an example.
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Assistance Administration Manual 5700
i , if' '< ' ' ' ' r i ' i ! ' ' • ' i
http://www.epa.gov/ogd/guide/subaward-policy-part-2.pdf
A. Purpose of the Directive.
The purpose of this Directive is to strengthen the management of
subawards made by recipients under Environmental Protection
Agency (EPA) assistance agreements, i.e., grants and cooperative
agreements. Areas addressed include the establishment of an
administrative national term and condition, eligibility, special
considerations for specific types of subawards, subaward
competition, and distinctions between procurement contracts and
subawards.
B. Authority.
EPA's statutory grant authorities and 40 CFR Parts 30 and 31
C. Scope/Applicability.
This Directive applies to subaward work under awards and supplemental amendments
issued after March 30, 2007. This Directive does not apply to collaborative relationships,
including those documented in a written agreement between a recipient and a third
party, which does not involve the transfer of assistance funds or property purchased
with assistance funds.
D. Definitions.
1. The term "subaward" means an award of financial assistance (money or property)
made under an EPA grant or cooperative agreement by a recipient to
an eligible subrecipient or by a subrecipient to a lower tier subrecipient. The term
includes financial assistance when provided by any written legal agreement, but does
not include procurement purchases, nor does it 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
is excluded from the definition of "award" under EPA's grant regulations (see 40 CFR
30.2 (ff) and 40 CFR 31.3).
2. The term "subrecipient" means the legal entity/individual which receives a
subaward and is accountable to the recipient for the use of the funds provided (see 40
CFR 30.2(gg) and 31.3).
3. The term "eligible subrecipient" means a legal
entity/individual that is not debarred or suspended or otherwise
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excluded from participation in Federal assistance programs
under Executive Order 12549, "Debarment and Suspension/' and
whose eligibility for a subaward is consistent with applicable
authorizing statutes and regulations.
E. General Principles.
It is EPA policy that subawards under EPA assistance
agreements be properly awarded and managed. Directive
requirements include:
1. Subawards may be made to eligible individuals and entities;
2. Recipients may not use subawards to transfer or delegate their
responsibility for successful completion of their EPA assistance
agreement;
3. Recipients must monitor the performance of their
subrecipients and ensure that they comply with applicable Federal
assistance agreement requirements;
4. Subawards may not be used to circumvent procurement
requirements or EPA competition policies; and
5. Recipients are responsible for the selection of
subrecipients and the management of any subaward
competitions.
F. Administrative National Term and Condition.
EPA will implement this Directive primarily by attaching an administrative National Term
and Condition for Subawards to all assistance agreements subject to this Directive. The
administrative National Term and Condition for Subawards can be found in Appendix A.
G. Eligibility.
1. Generally, unless prohibited by statute, an entity/individual is eligible to receive a
subaward even if it is not eligible to receive an assistance agreement from EPA directly
as long as the subaward is consistent with applicable EPA regulations, EPA policies,
EPA guidance, and OMB Circulars. Subawards may be made to individuals and to the
following entities, provided they are not debarred or suspended or otherwise ineligible
to participate in Federal assistance programs:
a. governmental entities subject to 40 CFR Part 31;
b. foreign or international organizations;
EPA Tribal, U.S. Territories and Insular Areas Administrative and Financial Guidance for Assistance Agreements
Last September 2013 38 of 519
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c. non-profit organizations, educational institutions and
hospitals subject to 40 CFR Part 30;
d. non-profit organizations deemed similar to commercial
concerns under Attachment C of OMB Circular A-122; and
e. for-profit organizations only where consistent with Section
210(a)-(d) of OMB Circular A-133 (see Appendix B).
Unless authorized by statute (e.g., the National Oceanic
and Atmospheric Administration self-certifying that it has
the statutory authority to receive subgrants under Clean
Water Act 319) federal entities, including, but not limited
to EPA laboratories, are not eligible for subawards.
2. In some cases, EPA statutes may impose eligibility restrictions
on subawards. Recipients must comply with these restrictions.
H. Special Considerations for Specific Types of Subawards.
1. Proposed Subaward Work to 501(c)(4) Organizations - EPA
award officials must disapprove the costs of proposed subaward
work to 501(c)(4) organizations identified in an application, or
work plan changes requiring prior approval, if the work involves
lobbying activities, or would otherwise violate the principles in
paragraph E, 2 to 5.
2. Proposed Subaward Work to For-Profit Organizations - EPA
generally does not allow recipients to make subawards to for-profit
organizations. Transactions between recipients and for-profit
organizations including individual consultants are, in almost all
cases, subject to the competitive procurement requirements of
EPA's grant regulations.
3. EPA Order 4540.1 - EPA, through the Office of International
Affairs (OIA), must consent to proposed grants or cooperative
agreements, prior to award, where work will be performed by any
recipient in whole or in part in a foreign country, or where work will
be performed in the United States by a foreign recipient and its
subrecipient or an international organization recipient and its
subrecipient. If the original award was not approved by OIA and the
subrecipient proposes work in a foreign country, OIA must consent
to the work prior to award of the subaward.
I. Subaward Competitions.
1. EPA Required Subaward Competitions.
EPA Tribal, U.S. Territories and Insular Areas Administrative and Financial Guidance for Assistance Agreements
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a. General - Under both competitive and non-competitive EPA assistance
agreement awards, Program Offices may require the recipient to conduct a
competition for subawards if the office determines that the subaward competition
is necessary for the effective and efficient implementation of the assistance
program (e.g., the National Center for Environmental Research determined that
research centers that receive funds via "earmarks" must compete subawards in
order to facilitate and accelerate the translation of basic science knowledge into
practical applications). This determination must be in writing and placed in the
official program office assistance agreement file. In addition, in some cases Program
Offices may be legally required to conduct subaward competitions and must do so
consistent with any applicable legal requirements and provisions of this Directive.
b. Non-Competitive EPA Assistance Agreements - When the Program Office requires
the recipient to conduct a subaward competition under a non-competitive EPA
assistance agreement, the award must include a programmatic term and condition
requiring the recipient to conduct the subaward competition consistent with the
negotiated work plan.
c. Competitive EPA Assistance Agreements - When the Program Office requires the
recipient to conduct a subaward competition under a competitive EPA assistance
agreement, the Agency's competitive funding announcement must include ranking
factors for evaluating the applicants' proposed procedure for conducting the
subaward competition. In addition, the award must include a programmatic term
and condition requiring the recipient to conduct the subaward competition
consistent with the subaward competitive process described in the approved work
plan.
2. EPA Participation in Subaward Competitions.
a. General - Grant and cooperative agreement recipients are
responsible for selecting their subrecipients and conducting
their subaward competitions. In addition, EPA personnel may
not direct recipients to make subawards to particular
organizations, suggest the use of specific subrecipients, interfere
with the recipient's subaward selection decisions, or use
subawards to circumvent EPA policies for competition of
assistance agreements. For example, a Program Office may want
to award a non-competitive grant to Organization A but is not
authorized to do so because of restrictions under EPA's
Assistance Agreement Competition Policy. EPA may not
circumvent these restrictions by awarding an authorized non-
competitive grant to Organization B with the understanding that
Organization B will then subaward all of the work to Organization
A.
b. Participation as Technical Advisors - EPA personnel may serve as technical
EPA Tribal, U.S. Territories and Insular Areas Administrative and Financial Guidance for Assistance Agreements
Last September 2013 40 of 519
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advisors to a recipient's subaward evaluation panel provided that they do not
unduly influence the panel or selection decisions and are free of any conflicts of
interest, or appearances that they may be violating ethical standards (e.g., Office of
Government Ethics (OGE) Standards of Ethical Conduct for Employees of the
Executive Branch), with respect to any competing subrecipients.
c. Participation on Evaluation Panels - For subaward competitions conducted by
recipients under assistance agreements, EPA personnel may serve as members of
the recipient's subaward evaluation panel provided that they do not unduly
influence the panel or selection decisions (e.g., EPA personnel must comprise
substantially less than a majority of the panel) and are free of any conflicts of
interest, or appearances that they may be violating ethical standards (e.g., OGE
Standards of Ethical Conduct for Employees of the Executive Branch), with respect to
any competing subrecipients.
J. Applicant Budget Information.
EPA personnel must ensure that the applicant's budget estimate for
any proposed subaward work is included in the "Other" category of
Standard Form 424A.
Future grant streamlining efforts might require that proposed
subaward work costs be reported as a separate line item.
K. Anticipated Outcomes/Results.
This Directive will provide the Agency with a consistent
approach to the award and administration of subawards.
L Performance Measures.
To implement this Directive, EPA will require that the administrative
National Term and Condition for Subawards be added to all
assistance agreements subject to this Directive. EPA will assess
recipient compliance with the administrative National Term and
Condition for Subawards during on-site reviews and desk reviews.
The Office of Grants and Debarment (OGD) will measure Agency
compliance with this Directive by conducting periodic compliance
reviews.
M. Roles and Responsibilities.
1. Program Offices are responsible for:
a. Reviewing proposed subaward work specified in an
assistance agreement application work plan, or work plan
changes requiring prior approval, to ensure compliance with
EPA Tribal, U.S. Territories and Insular Areas Administrative and Financial Guidance for Assistance Agreements
Last September 2013 41 of 519
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this Directive and in accordance with cost review guidance
provided/approved by OGD;
b. Program Offices as part of their cost reviews of applications,
or work plan changes requiring prior approval, must ensure
that proposed subaward work is for an authorized assistance
purpose and not to acquire goods and services for use by the
recipient. (See Section 210(a)-(d) of OMB Circular A-133 and
Appendix B for examples for distinguishing between
subawards and contracts);
c. Obtaining necessary OIA consent for work to be
performed in a foreign country or any work by a foreign
recipient or international organization;
d. Informing the recipient of any program-specific
restrictions or statutory restrictions on subawards;
e. Performing the responsibilities outlined in paragraph I, as applicable;
f. Assessing compliance with this Directive during
programmatic on-site reviews and desk reviews,
particularly with respect to subawards to 501 (c)(4)
organizations; and
g. Assessing compliance with this Directive as part of Grants
Management Self-Assessments.
2. Grants Management Offices (GMOs) are responsible for:
a. Including the administrative National Term and Condition
for Subawards in all assistance agreements subject to this
Directive (see Appendix A);
b. Assessing compliance with this Directive during
administrative on-site reviews and desk reviews,
particularly with respect to subawards to 501 (c)(4)
organizations;
c. Assessing compliance with this Directive as part of Grants
Management Self-Assessments; and
d. Working with Program Offices to resolve issues
identified during the review of proposed subaward work.
3. Office of Grants and Debarment.
EPA Tribal, U.S. Territories and Insular Areas Administrative and Financial Guidance for Assistance Agreements
Last September 2013 42 of 519
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a. OGD is responsible for evaluating compliance with
this Directive by conducting periodic compliance
reviews.
b. The Director, OGD, is responsible for issuing such guidance as may be
necessary to respond to statutory or OMB requirements regarding tracking of
subaward information.
c. In response to a written request from an approval
official, the Director, OGD, may issue a waiver from the
requirements of this Directive if the waiver is justified
because of national security concerns or circumstances of
unusual or compelling urgency, or because the waiver
would be in the public interest.
4. Office of International Affairs.
EPA's Office of International Affairs is responsible for acting on
requests for EPA consent for subawards involving any work to
be performed in a foreign country or any work to be
performed in the United States by a foreign recipient or
international organization.
N. References.
40 CFR Parts 30 and 31; OMB Circular A-133, subparts B and
C; and OMB Circular A-122, Attachment C
O. Sunset/Review Date.
The Office of Grants and Debarment will periodically evaluate the
effectiveness of this Directive.
P. Supersedes/Cancels.
Not applicable.
EPA Tribal, U.S. Territories and Insular Areas Administrative and Financial Guidance for Assistance Agreements
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Best Practices Guide for Conferences
This Guide was written November 20, 1998. The most current version is available online at
http://www.epa.gov/ogd/recipient/bestpractice.htm.
HOW TO USE THIS GUIDE
This guide is structured to help you first identify the purpose of your conference and whose
conference it is, since this should drive your choice of funding instruments and many of your
subsequent conference decisions. You should use the indicators in Chapter 1 as a starting point to
determine whose conference it is. Once you have decided whose conference it is, you will be guided
to Chapters 2, 3, or 4, which will describe the appropriate funding instruments for the conference
and the conference-related funding issues you should consider. Chapter 5 addresses proper
documentation of conferences. Lastly, a list of references by subject matter is attached to assist you
if you need to consult additional references.
TABLE OF CONTENTS
INTRODUCTION iv
CHAPTER 1: Whose Conference Is It? 1-1
CHAPTER 2: Our Conference 2-1
A. EPA Conference - Overview 2-1
B. Funding Instruments 2-1
1. Contracts 2-1
2. Interagency Agreements (lAGs) 2-2
3. Supporting Conferences with In-House Resources 2-3
C. Allowability of Costs - Overview 2-3
1. Meals, Snacks and Refreshments 2-3
2. Honoraria 2-4
3. Procurement of Items for Distribution at EPA-Sponsored Conferences 2-4
4. Registration Fees for EPA-Sponsored Conferences 2-4
5. Travel 2-4
6. Printing of Conference Material 2-6
D. Location 2-6
CHAPTER 3: Their Conference 3-1
A. Supporting a Conference 3-1
Sponsored by a Nonfederal Entity - Overview
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B. Funding and Other Support Instruments 3-1
1. Assistance Agreements 3-1
2. Cooperation Authority lAGs Authorized by EPA Program Statute 3-1
3. In-Kind Assistance 3-2
C. Allowability of Costs - Overview 3-2
1. Entertainment vs. Education 3-2
2. Meals and Refreshments 3-3
3. Travel 3-3
4. Registration Fees 3-4
D. Use of EPA Logo 3-4
E. Lobbying 3-4
F. Printing of Conference Material 3-4
G. EPA's Use of Assistance Recipients' Conference 3-4
Proceedings and Reports
H. Free Attendance by EPA Employees 3-4
I. Location 3-4
CHAPTER 4: Jointly Sponsored Conferences 4-1
A. Supporting a Jointly Sponsored Conference - Overview 4-1
B. Areas of Concern 4-1
1. Appearance 4-1
2. Augmentation of Appropriated Funds 4-1
3. Lobbying 4-2
C. Instruments - Overview 4-2
1. Acquisition 4-2
2. Assistance Agreements 4-2
D. Funding Instruments: Example of Jointly Sponsored Conference 4-3
Using Multiple Instruments
E. Allowability of Costs - Overview 4-4
F. Issues Relating to Jointly Sponsored Conferences 4-4
1. Free Attendance for EPA Employees 4-4
2. EPA Property and Services 4-5
3. Social Events 4-5
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4. Co-sponsors' Independent Events 4-5
5. Fundraising 4-5
6. Food and Refreshments for EPA Employees 4-5
7. Food and Refreshments for NonfederaI Attendees 4-6
8. Use of EPA Logo 4-6
9. Printing of Conference Material 4-6
10. Location 4-6
CHAPTER 5: Maintaining Proper Documentation 5-1
REFERENCE LIST R-l
A. Introduction R-l
B. General Acquisition and Assistance Requirements R-l
C. Conference Planning and Site Selection R-2
D. Travel R-2
E. Food R-3
F. Federal Advisory Committee Act Meetings (FACA) R-3
G. Lobbying R-4
INTRODUCTION
Conferences, large and small, play an important role in fulfilling EPA's mission. They can be an
effective way to bring together various groups of people to share information, educate the public,
work with state and local government partners, train employees, and learn from non-governmental
stakeholders. Conferences are also a useful way for nonfederal entities, such as universities, state
and local governmental environmental agencies, and intergovernmental groups to carry out
environmentally related work for which they receive funding from the Agency. For purposes of this
guide, the term "conference" encompasses workshops, seminars, symposia, conventions, or similar
designations for business related gatherings that involve topics related to EPA's mission of
environmental protection.
The range of stakeholders playing integral roles in agency-related activity has grown, as has the use
of conferences to convene various groups for a variety of purposes. As the Agency and others have
expanded the use of conferences, issues have arisen in connection with conference planning,
particularly with funding. The Office of Inspector General (OIG) audited several conferences and
identified a number of recurring problems. As a result, an intra-Agency workgroup was established to
develop a guide for Agency personnel to use in funding, and assisting others with, conferences of all
kinds. The Best Practices Guide for Conferences is the result of the workgroup's efforts.
The guide begins by asking "Whose conference is it?" By defining the purpose of the conference, the
planner can determine whether it is: (1) "ours," an EPA conference or one that EPA sponsors with
other federal agencies, or (2) "theirs," one held by a nonfederal sponsor that EPA supports with
financial assistance, or (3) a "jointly sponsored" conference, benefiting both the Agency and a
nonfederal entity. Sometimes, the answer to this question will be obvious and sometimes you will
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have choices as to how to answer the question, depending on the topics for the conference and EPA's
role in the conference.
Once the question "Whose conference is it?" has been answered, the guide describes appropriate
acquisition and assistance funding mechanisms available for various types of conferences. The guide
also outlines major funding issues associated with conference support, such as invitational travel,
non-invitational participant travel, meals, conference materials, and other expenses. It also includes
information on when and how registration fees can be collected, honoraria, and ethical
considerations.
The guide is not the last word on conferences. It is not meant to be used as a "how to" guide for
planning conferences. The emphasis of the guide is addressing funding concerns. For most areas that
are addressed, it is just the starting point. There are references to statutes, regulations, other agency
guidance documents, and EPA Ethics Advisories that should be consulted. Agency personnel in the
Office of Acquisition Management (OAM), the Grants Administration Division (GAD), the Office of the
Chief Financial Officer, and the Office of General Counsel's (OGC) Finance and Operations Law Office
or Regional Counsel should also be consulted as needed.
CHAPTER 1: WHOSE CONFERENCE IS IT?
Any conference that EPA supports or holds must be related to its environmental mission. Before you
begin the planning process, you should be able to justify the need and identify the statutory
authority for the conference, and confirm that funds and, if appropriate, EPA staff resources are
available. The planning process begins with determining the answer to the question, "Whose
conference is it?" A conference that is intended primarily to help the Agency carry out its
governmental functions is "ours" and is discussed in Chapter 2. A conference intended primarily for
the benefit of a nonfederal entity is "theirs" and is discussed in Chapter 3. Finally, when the Agency
and a nonfederal entity share control of the conference, it is "jointly sponsored" and is discussed in
Chapter 4. The two key issues to consider are: (1) purpose of the conference, and (2) control of the
planning and the agenda.
(1) Purpose of the Conference. The purpose of a conference is a decisive factor. The more the
conference is needed by EPA, the more likely it is ours. For example, if the principal purpose of the
conference is to provide EPA with a report, data, recommendations, or other information that we will
use to develop or directly incorporate into EPA regulations or guidance documents, it is ours.
Meetings and conferences conducted under the Federal Advisory Committee Act (FACA) are ours.
On the other hand, if the primary purpose is to help a nonfederal entity achieve its objectives, the
conference is theirs. For example, a conference to facilitate nonfederal research is theirs, even if EPA
provides the meeting space. When nonfederal entities meet to share information on environmental
or scientific issues, the conference is also theirs, even if EPA provides financial assistance.
Conferences sponsored by associations of state or tribal officials to discuss EPA programs
implemented by these entities as co-regulators or as partners in a coordinated national effort are
theirs as well in certain situations. However, if EPA is in fact a convener and a motivator for the
conference, then the conference may be jointly sponsored rather than theirs.
Finally, if the conference assists the Agency and a nonfederal entity to accomplish mutual objectives,
it may be jointly sponsored. For instance, if the Agency and nonfederal entities share an interest in
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promoting environmental awareness, such as recycling initiatives, a jointly sponsored conference
may be appropriate. It may also be appropriate when EPA, state, and local government officials
meet to share information about environmental problems.
(2) Control of the Planning and Agenda. The more control EPA or other federal agencies exercise over
the agenda and selection of speakers, the more likely the conference is ours. For example, if
conference scheduling is driven by the need to meet a regulation production deadline, the conference
is ours. Similarly, if the Agency has control over speakers, attendees, and logistics, the conference is
ours. However, if a nonfederal entity controls planning and agenda decisions, even with input from
EPA, the conference is theirs. Finally, if the Agency shares control of these types of decisions, the
conference may be jointly sponsored.
The following factors will provide you with more information to help you make the proper
determination of whose conference it is.
DECISION INDICATORS: OURS
The purpose of the conference is to:
• discuss, evaluate, or plan a specific EPA activity or program
• advise EPA on its operations (e.g., FACA)
• solicit public or stakeholder input to official EPA actions or policy
• develop official EPA positions on science or other policies
• train EPA staffer other direct implementers of EPA regulations
• generate information to be incorporated directly into official EPA positions, such as policy,
regulations, or guidance
• propose, announce, or explain EPA actions
• disseminate mandated information
EPA expects to control:
• the agenda
• the selection of speakers, panelists, and/or attendees
• the duration, date, and location of the meeting
DECISION INDICATORS: THEIRS
The purpose of the conference is to:
• discuss, evaluate, or plan non-EPA or public/private initiatives to improve the environment
• share information on environmental or scientific issues
• support or stimulate public awareness of general environmental issues
• facilitate informed public dialogue on environmental and policy questions
• enhance management of non-EPA environmental programs
• hold discussions by states and tribal associations of delegated environmental programs
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The n on federal entity expects to control:
• the agenda
• the selection of speakers, panelists, and/or attendees
• the duration, dates, and location of the meeting
DECISION INDICA TORS: JOINTL Y SPONSORED
The purpose of the conference is for federal and nonfederal entities to:
• advance a mutual interest
• develop products for common goal(s)
The co-sponsors include both federal and nonfederal entities and conference costs are shared
Decisions are shared among the parties to the conference, including control of:
• agenda planning
• speaker selection
• location selection
• conference logistics
On the following page, a summary chart provides a side-by-side overview of the indicators of
purpose and control to assist you in answering the question "Whose Conference is it?"
WHOSE CONFERENCE IS IT: OVERVIEW OF INDICATORS OURS (Chapter 2) THEIRS (Chapter 3) JOINT
(Chapter 4)
PURPOSE
• Discuss, evaluate, or plan a specific EPA activity or program
• Advise EPA on its operations (e.g., FACA)
• Receive public or stakeholder input to official actions or policy
• Develop EPA science and other policies
• Training for EPA staff or other implementers of EPA regulations
• Generate information to be used in official EPA products, e.g., guidance, regulations, or
policies
• Propose, announce, or explain EPA actions to other government agencies, the public, or
stakeholders
• Disseminate mandated information < Discuss, evaluate, or plan a non-EPA initiative to
improve the environment
• Share information on environmental or related scientific issues
• Support or stimulate public awareness of general environmental issues
• Facilitate informed public dialogue on environmental and policy issues
• Enhance management of non-EPA/nonfederal environmental programs
• Hold discussions by states and tribal associations of delegated environmental programs.
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• Advance a mutual interest by serving both EPA's mission and the substantive interests of the
nonfederal co-sponsor(s)
• Develop products for common goals
CONTROL
• EPA control of the agenda
• EPA control over selection of speakers, panelists, and/or attendees
• EPA control over logistics, such as duration, dates, and location
• Non-EPA control of the agenda
• Non-EPA control over selection of speakers, panelists, and/or attendees
• Non-EPA control over logistics, such as duration, dates, and location
• Shared control of the agenda
• Shared selection of speakers, panelists, and/or attendees
• Shared responsibility for logistical planning and decisions
If you have determined that your conference is EPA-sponsored, proceed to Chapter 2. If you have
determined that it is theirs, proceed to Chapter 3. If the conference is going to be jointly sponsored,
proceed to Chapter 4. If you are still unsure after reviewing these factors, you should contact OGC's
Finance and Operations Law Office or Regional Counsel for guidance.
A. EPA Conference — Overview. Once you have reviewed Chapter 1 and decide that the conference is
ours, there are three main ways that you can financially support it: (1) award a contract or issue a
work assignment under an existing contract, if tasks are covered within the statement of work; (2)
enter into an Interagency Agreement (IAG) to obtain services from another federal agency; or (3)
conduct the conference using Agency personnel. All of these methods are appropriate ways to
acquire services for our direct benefit and use. You cannot properly use a grant or cooperative
agreement to support "our" conference. You also need to be aware of limitations relating to travel
payments for conferences. This chapter lists and briefly describes instruments that can be used to
support an EPA-sponsored conference.
B. Funding Instruments.
1. Contracts may be used to fund "components" of the conference, such as space and supplies, or
they may be used to fund the whole conference, hiring a contractor to make most or all of the
arrangements. There are at least four commonly used contracting methods. OAM can provide you
with a helpful guide for conference contracting entitled, "Your Preparation Guide for
Conferences/Meetings/Training." It focuses on small purchases, but is also useful for other types of
contracts. It includes copies of key policies and instructions on preparing a purchase request. Since
the guide was written in May 1995, the small purchase limit has changed. It is currently $100,000.
(a) Small items and services less than $2,500, sometimes called micro-purchases, may often be
purchased with a government credit card. Micro-purchases might include, for example, meeting
room rental, supplies, and equipment rental. Consult a warranted bankcard holder for details on the
use of such cards.
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(b) More extensive services, up to a total of $100,000, may be acquired through simplified acquisition
procedures, formerly known as "small purchases." You must be careful to specify exactly what you
need, as well as the basis on which bids will be reviewed. For additional guidance on simplified
acquisitions, consult the Contract Management Manual, Chapter 2, and OAM's guidance, "Simplified
Acquisitions Made Easy," dated April 1998.
(c) Some types of support can be obtained using a conference support contract. A conference support
contractor has little direct substantive interest in the conference and is simply in the business of
providing logistical support services. Conference support contracts are often written to provide
recurring logistical support for an Office. Individual conferences also can be supported by issuing
Work Assignments or Delivery Orders under a broader support contract, provided such support is
within the scope of the contract.
(d) Some conferences are funded under contracts with a contractor who has a direct interest in the
conference as an incidental task under a larger, broader contract's scope of work. For example, a
contractor tasked to determine the current state of the art and recommend improvements in an area
of chemical analytical techniques may need to convene a conference to assist in that determination,
as an incidental part of doing the job. The Agency is the ultimate beneficiary, but the contractor is
directly responsible for managing the conference.
Caution: In planning an EPA-sponsored conference, there may be situations where you need to
exercise care in determining what, if any, contractor support may be appropriate. Some Agency
conferences include candid discussions of sensitive budget, acquisition, and other planning
information that should be safeguarded. Special controls should always be in place to ensure that
contractors do not have inappropriate access to privileged and sensitive information (e.g.,
Confidential Business Information or procurement sensitive information). You should avoid situations
where contractors may have access to information that would give them an unfair competitive
advantage, or create an appearance of a conflict of interest. At any Agency conference, you should
always identify contractors who are present and ensure that contractor support staff wear badges
and identify themselves.
2. Interaqency Agreements (lAGs). There are two types of lAGs: Economy Act lAGs and Cooperation
Authority lAGs authorized by EPA program statutes. (Note: If EPA provides funds to another agency
under an IAG, the IAG is subject to that agency's requirements, unless a specific term and condition
imposes EPA's requirements.)
(a) You may want to use another federal agency to help with putting on your conference. For
instance, a General Services Administration contract providing meeting logistics support could be
used. The proper way to do this is through an Economy Act IAG. Economy Act lAGs are always
intended to "acquire" services or property from another federal agency for the direct use of EPA.
Therefore, it is improper for the other agency to award a grant or cooperative agreement to fulfill
EPA's requirements. To use the Economy Act, both federal agencies must be responsible for
conducting the proposed activities and authorized to use their appropriations for the work. The
Economy Act specifies that the servicing agency must recover its expenses and it cannot cost share.
As of 1996, EPA's Grants Administration Division (GAD) is required to prepare a "Determination and
Finding" in support of an Economy Act IAG, which states that the IAG is not being used to avoid
competitive contracting. You may be asked to provide information to help prepare this. Final
approval of the Determination and Finding rests with OAM. For additional guidance, see
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memorandum from GAD Director to IAG Project Officers, "Interagency Agreement Decision
Memorandum Guidance, Pre-award IAG Activities, and Subcontractor Selection," dated Sept. 30,
1996.
b) Cooperation Authority lAGs authorized by EPA Program Statutes involve mutual cooperation and
investment of resources between the cooperating federal agencies with an overlapping mission and
interest in the project. For example, both agencies could contribute resources to a conference,
whether in the form of salaries, equipment, travel, or contract services. GAD maintains a list of
program statutes authorizing such cooperation. A list of the statutory and related authorities which
authorize the Agency to enter into lAGs is provided as Attachment 4 to the previously referenced
Sept. 30, 1996, memorandum from GAD Director to IAG Project Officers.
3. Supporting Conferences with In-House Resources. EPA can also organize and conduct conferences
using only its own staff. In addition to planning the substance of the conference, staff may carry out
logistical arrangements such as identifying hotels and meeting space, taking minutes, and
registering attendees.
C. Allowability of Costs - Overview. Only a contracting officer has the authority to obligate
government funds under a contract. In planning a conference, you must not make financial
commitments to hotels or other vendors unless you have the authority to do so. Anyone who
undertakes to commit the government without authority risks being held personally liable by the
vendor for payment and may be subject to EPA disciplinary action. In working with a hotel to reserve
space, you must make it clear that you do not have the authority to sign a contract, but are merely
reserving space. Any short-term conference meeting space you obtain in the District of Columbia
must be procured under 41 CFR 101-17.101. In addition, direct procurement or purchase of lodging
facilities in the District of Columbia, without specific authorization and appropriation by Congress, is
prohibited. See 40 U.S.C. 34.
Both EPA employees and contractors are responsible for assuring that costs for conference activities
are allowable and reasonable. Agency staff responsibilities include performing a careful review of the
proposed conference activities, the IAG or contract that funds the conference, work
assignments/amendments, and invoices. These reviews are conducted to identify costs that are
unreasonable and unallowable, or need further explanation or documentation. All reviews should be
documented. Federal laws and regulations provide the basis for authorizing and paying for costs.
Necessary and reasonable costs are for work that benefits the project and are within the project's
scope. For further guidance, we recommend you consult the FAR Part 31, "Contract Cost Principles
and Procedures."
1. Meals, Snacks, and Refreshments. For additional guidance in this area, we recommend you consult
OAM Procurement Policy Notice 94-10, "Contracting for Meals and Refreshments for Government
Employees" and the EPA Travel Manual, Chapter 5.
(a) Meals. Appropriated funds may not be used to pay subsistence or provide food to government
employees at their official duty stations or when not on official travel status. See the EPA Travel
Manual, Chapter 5.1.b.(3).
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(b) Snacks and Refreshments. Refreshments, such as snacks, alcoholic beverages and coffee, are not
considered necessary expenses and may not be included as part of the conference room fee, nor can
mandatory registration fees be used to pay these expenses. However, conference participants can
"pass the hat" for voluntary contributions for coffee and snack expenses.
(c) Exceptions Under Government Employee Training Act, 5 U.S.C. 4101. Under this Act, EPA can
provide meals, snacks, and refreshments to its employees if necessary to achieve the objectives of
the training program, and may furnish meals to non-government speakers as an expense of
conducting the training. For additional guidance, consult OC Policy Notice 92-07, page 3, "Procuring
Subsistence for Training/Conferences/Meetings" and the EPA Travel Manual, Chapter 5.5. a. and b.
2. Honoraria. Generally, Agency appropriated funds may not be used to procure personal gifts to be
given to nonfederal speakers.
(a) Contractual speaker fees, whether or not called "honoraria," are permissible.
(b) If the speaker is a federal employee, the speaker is prohibited from receiving compensation for
speaking related to his or her official duties. However, federal speakers may receive a modest
nonmonetary award (e.g., plaques or mugs) to recognize an achievement, under the Government
Employee Incentive Award Act. For more information and exceptions see the Standards of Ethical
Conduct for Employees of the Executive Branch (5 CFR 2635.201-205), August, 1992, and Office of
Personnel Management Regulations (5 CFR Part 451.)
3. Procurement of Items for Distribution at EPA-Sponsored Conferences. Agency policy precludes the
purchase of certain items, such as tote bags, drinking containers, and wearing apparel, for
distribution to the general public and EPA employees who merely attend an Agency-sponsored
conference. Other items with low cost and limited utility (e.g., bumper stickers, buttons, pens and
pencils) may be distributed widely at Agency-sponsored conferences, provided the items convey an
appropriate environmental message. See OAM Procurement Policy Notice 95-01, "Procurement of
Items for EPA Sponsored Commemorations and Events."
4. Registration Fees for EPA-Sponsored Conferences. Registration fees are payments collected by EPA
or its contractor from private and other public participants who are attending an EPA-sponsored
conference, and must be deposited in the Treasury of the United States, unless the Agency has
specific statutory authority to treat such fees differently. See 31 U.S. C. 3302(b). EPA appropriation
laws do not include general authority to accept donations. Agency policy states that organizations
planning conferences and meetings should program and budget for the administrative costs of these
conferences and meetings and avoid establishing registration fees, if at all possible.
Where it is necessary to establish registration fees, only expenses such as the costs of necessary
supplies and materials, printing, rental of facilities and equipment, and other items will be included.
Additionally, you can only charge a fee that will equal the actual costs of these materials. Mandatory
registration fees should not include the cost of meals and unallowable items, such as entertainment,
coffee, snacks, cocktails and other similar items of a refreshment nature. However, any fees collected
must be deposited in the Treasury. See the EPA Travel Manual.
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5. Travel. There are strict rules governing travel expenses incurred for EPA-sponsored conferences.
(Note: The rules governing travel for conferences and meetings that the Agency conducts, and those
carried out by recipients under grants and cooperative agreements, are significantly different. In
addition, travel rules differ for federal and nonfederal participants and attendees.)
(a) Travel for Federal Employees. The Agency's appropriation allocates specific amounts to finance
necessary personnel expenses, including travel. These accounts are separate from other accounts
that fund contracts, grants, and other "extramural" operations of the Agency. Therefore, a federal
employee's travel expenses cannot be funded by an organization using EPA extramural funds for that
conference. Travel costs for EPA staff to participate in a conference are covered as personnel
expenses and may include registration fees as appropriate. Staff participation is authorized for
conferences relating to matters that would improve the conduct, supervision, or management of
Agency functions or activities. Agency policy requires management to ensure that attendance at
conferences "be authorized only to the extent that it will provide direct benefit in achieving
objectives related to EPA's mission." Cost effectiveness in achieving our mission should be our basic
guide. See the EPA Travel Manual, Chapter 3.16.(a), (b) and (c). In some cases, EPA may choose to
cover travel and subsistence expenses for other federal employees to participate in an EPA
conference, assuming the other federal employee's need to travel is directly attributable to activities
associated with the conference. This is not invitational travel, under 5 U.S.C. 5703. The Agency can
either issue an EPA travel order directly to the employee or can reimburse the employee's agency
through an IAG. For additional guidance, see memorandum from GAD Director to EPA IAG Project
Officers, dated Sept. 30, 1996.
When the conference is within 50 miles of the employee's duty station, the general rule is that only
such out of pocket expenses as POV mileage, parking fees, taxi, or subway fares can be reimbursed.
Waivers may be granted for EPA national conferences within the 50-mile radius in certain limited
circumstances. See the EPA Travel Manual, Chapter 5.5.
(b) Travel for Nonfederal Participants and Attendees. EPA may pay for travel and subsistence
expenses for nonfederal conference participants under invitational travel orders when the individual
performs a direct service for the Agency (e.g., facilitator, speaker, panelist, or FACA member).
Agency travel funds used for invitational travel orders are charged against the inviting office's travel
ceiling budget. Individuals receiving invitational travel orders must follow federal travel regulations,
except they cannot receive travel advances. See 5 U.S.C. 5703 and the EPA Travel Manual, Chapter
3. The Agency cannot use invitational travel authority to enable nonfederal personnel to merely
attend conferences that the Agency sponsors. Generally, appropriated funds cannot be used to pay
for travel, transportation, and subsistence expenses for nonfederal attendees unless such payments
are specifically authorized by law. See 31 U.S.C.1345.
If the Agency pays travel for FACA members, it must be through invitational travel orders because
FACA members are providing a service to the Agency with their advice and consultation. See 5 U.S.C.
App. 2, Section 7 (d)(l)(B) and the EPA Travel Manual, Chapter 3.3.
(c) Contractors. A contract, including a purchase order, can include travel costs for an individual
performing services within the scope of the contract, such as providing logistical services, training,
peer review, or presentations. However, you must not violate the Agency's policies prohibiting
"directed subcontracting" by specifying to the contractor whom to hire. See OAM Procurement
Policy Notice 97-01, "Required Practices Concerning Subcontracts." A contract cannot be used to
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procure travel for nonfederal individuals who merely attend the conference. See OGC
Memorandum, dated Sept. 22, 1993, "Payment of Travel Expenses of Non-Federal Participants at
EPA Meetings."
(d) Authorization for Conference Travel. Travel to EPA sponsored, co-sponsored, or non-EPA
sponsored conferences by 30 or more EPA employees must be authorized by the Assistant
Administrators/Regional Administrators. This includes invitational travelers whose travel expenses
are being paid by EPA. See the EPA Travel Manual, Chapter 3.16.(a), (b) and (c).
6. Printing of Conference Material. EPA will, as a matter of Agency policy, follow Government
Printing Office (GPO) procedures. EPA's Printing Officer acts as the Agency's central management
office and has responsibility for controlling EPA printing. Any questions regarding whether a
particular printing need falls within an exception to obtaining printing services through GPO should
be directed to the EPA Printing Officer. Circumvention of EPA policy prohibiting the use of
commercial printing services to print government documents, without authorization from GPO, is a
serious matter.
D. Location. Government-owned or government provided conference facilities should be used to the
maximum extent possible. If there is no space available in the Agency, managers should contact the
Facilities Office, which will contact GSA to determine if suitable government-owned facilities are
available in the desired area. The use of government-owned facilities versus commercial facilities
will be based on Agency need and overall cost of the conference. All Assistant
Administrators/Regional Administrators and senior managers are responsible for ensuring that
meeting sites are, to the extent feasible, held in or near EPA regional cities or major laboratory
facilities. However, there may be occasions where it is advantageous to select a site outside the local
area in order to focus on issues without local distractions. All EPA-sponsored conferences, meetings,
or training seminars being held in hotels or motels must comply with the Hotel and Motel Fire Safety
Act of 1990. A list of hotels and motels that comply with the Act can be found in the monthly
publication of the Federal Travel Directory issued by GSA. See the EPA Travel Manual, Chapter
4.2.(d) and for additional information, see Federal Travel Regulations, 41CFR Parts 301-16 and 301-
17. When EPA holds a conference involving travel by 30 or more EPA employees or other travelers
whose expenses are being paid by EPA, a cost comparison justifying the conference location must be
prepared. Seethe EPA Travel Manual, Chapter 3.16.(a), (b) and (c).
CHAPTER 3: THEIR CONFERENCE
A. Supporting a Conference Sponsored by a Nonfederal Entity -- Overview. If you have reviewed
Chapter 1 and decided that the conference is "theirs," EPA can provide financial support in the form
of grants, cooperative agreements, and Cooperation Authority Interagency Agreements authorized
by EPA program statute, provided EPA has the statutory authority. For general guidance, see EPA
Order 5700.1, "Policy for Distinguishing Between Assistance and Acquisition." The Agency
encourages fair and open competition in the award of discretionary assistance agreements in
accordance with the Federal Grant and Cooperative Agreement Act of 1977. For additional
guidance, see Grants Management Fact Sheet No. 9, "Competition for Assistance Agreements."
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B. Funding and Other Support Instruments.
1. Assistance Agreements
(a) Grants may be used to support the conference if all of the following tests are met and
documented:
(i) it is to accomplish a public purpose of support or stimulation, not for our direct use or benefit
(see Chapter 1 of this guide);
(ii) it is for an eligible nonfederal entity (most statutes exclude profit making companies);
(iii) the principal purpose is to transfer money or other things of value;
(iv) it is authorized by law (you must cite a statutory authority for using an assistance agreement to
support the conference); and finally
(v) EPA is not substantially involved in the work and we do little more than watch for progress and
problems.
(b) Cooperative Agreements are essentially the same as grants and may be used if the conference
meets tests (i)-(iv) above. The difference is that cooperative agreements must be used when EPA
anticipates "substantial involvement" in the assistance relationship. Cooperative agreements, like
grants, may not be used when the purpose of the agreement is to acquire services, information, or
"stakeholder input" for the direct use and benefit of the government. See EPA Order 5700.1.
(c) Assistance Agreements (grants and cooperative agreements) may also be used to support a
conference of state or tribal officials implementing a federal effort under a formal delegation or as
partners with EPA in a coordinated, national effort. Although the states or tribes provide
information or recommendations to EPA, the principal purpose of the assistance is to support the
participation of states or tribes in the development of environmental policies and programs that
they implement. For detailed guidance, see EPA Order 5700.1, pages 8-9. (These kind of conferences
may also be Jointly Sponsored. See Chapter 4.)
2. Cooperation Authority Interagency Agreements Authorized by EPA Program Statute involve
mutual cooperation and investment of resources between the cooperating federal agencies with an
overlapping mission and interest in the project. For example, both agencies could contribute
resources and fund the conference arrangements through a grant, cooperative agreement, or
contract awarded by one of the agencies. GAD maintains a list of program statutes that authorize
such cooperation. EPA cannot use an IAG to provide funds to another agency to award a grant that
EPA cannot award itself. For additional guidance, consult memorandum from GAD Director to IAG
Project Officers, " IAG Decision Memorandum Guidance, Pre-award Activities, and Subcontractor
Selection," dated Sept. 30, 1996. (Note: If EPA provides funds to another agency under an IAG, the
IAG is subject to that agency's requirements, unless a specific term and condition imposes EPA's
requirements.)
3. In-Kind Assistance. The Agency may provide support other than direct monetary assistance. For
example, we could devote EPA staff time, space, copying equipment and supplies. We could also
agree to prepare papers for submission to a conference, provide EPA speakers, or make facilities
available. In addition, the services of an EPA contractor, such as a logistics contractor or a meeting
support contractor, can be provided as a form of in-kind assistance. A determination must be made
that providing contractual services instead of funds is more economical. The cost of the contractual
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services must be charged to the grants object class and should be documented in the assistance
agreement if possible.
C. Allowability of Costs -- Overview. Many of the constraints associated with funding an EPA-
sponsored conference do not apply to funding nonfederal entities' conferences through federal
assistance agreements. However, grant costs must comply with applicable assistance regulations.
See 40 CFR Parts 30 and 31.
Both EPA employees and assistance recipients are responsible for assuring that costs for conference
activities are allowable, reasonable, and allocable to the grant. Agency staff responsibilities include
performing a careful review of proposed conference activities and the assistance agreement that
funds the conference. Reviews are conducted to identify costs that are unreasonable and
unallowable or need further explanation or documentation. All reviews should be documented.
Also, assistance recipients must comply with OMB Circular A-122, "Cost Principles for Non-Profit
Organizations," OMB Circular A-21, "Cost Principles for Educational Institutions," or OMB Circular A-
87, "Cost Principles for State and Local Governments." See also Part 31 of the FAR, which provides
cost principles for assistance recipients that are profit organizations.
1. Entertainment vs. Education. As a general rule, assistance funds may not be used for
entertainment costs. Entertainment, as defined in the General Accounting Office's Principles of
Federal Appropriations Law, Volume I, Chapter 4, includes "a source of amusement, a diverting
performance, especially a public performance, such as a concert, drama, or the like." Providing
technical policy, or program information to educate the public at a conference is allowable. The
distinction between unallowable entertainment and allowable education costs is not always clear.
What the recipient sees as an interesting and informative presentation, the general public or
auditors may see as entertainment. The recipient should adequately document the purpose of
expenses that may be perceived as entertainment. See OMB Circulars A-21, A-87, and A-122 for
unallowable costs.
2. Meals and Refreshments. The costs of meals and refreshments may be charged to assistance
agreements only to the extent that they are allowable under the OMB Circulars A-21, A-87, and A-
122. Generally, the cost of meals that are essential to the business of a conference because they are
accompanied by presentations or panel discussions are not likely to be questioned. Also,
refreshments at breaks are generally allowable, provided the costs are reasonable.
3. Travel. The rules governing travel for conferences and meetings that the Agency conducts, and
those carried out by recipients under grants and cooperative agreements, are significantly different.
(a) Nonfederal Attendees. Assistance funds can be used to defray transportation and subsistence
expenses for nonfederal attendees in conferences that the recipient carries out. The decision as to
who receives transportation and subsistence expenses is the recipient's, not EPA's, and EPA should
avoid even the appearance of directing the recipient to provide travel to specific individuals.
(b) Federal Employee Travel. Agency employees may attend recipient conferences as part of their
official duties. However, assistance funds cannot be used to fund travel for federal employees
because this would circumvent limits on government travel ceiling. See Ethics Advisory 92-26,
"Revised Rule on Acceptance of Travel Expenses," dated Dec. 24, 1992. EPA may use its own travel
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funds to enable a federal employee to attend a conference relating to matters that would improve
the conduct, supervision, or management of Agency functions or activities. A nonfederal
organization can use its own funds (not part of a match for a grant or cooperative agreement) to pay
for EPA employee travel provided the appropriate Ethics Advisories are followed. You should consult
an Agency Ethics Advisor for guidance. See also Ethics Advisory 92-26, Ethics Advisory 97-05,
"Addendum to EPA Ethics Advisory 92-26, Accepting Travel Expenses," dated March 13, 1997, and
Ethics Advisory 94-17, "Providing Speakers at Conferences, Seminars, and Similar Events," dated
April 13, 1995, and Standards of Ethical Conduct for Employees of the Executive Branch (5 CFR
2635).
(c) 30 or More Federal Attendees. Travel to any conference, including conferences sponsored by
recipients, involving travel by 30 or more EPA employees must be authorized by the Assistant
Administrators/ Regional Administrators. Seethe EPA Travel Manual, Chapter 3.16.(a), (b) and (c).
The number of employees attending the conference (whether they pay registration fees or not)
must not create the appearance that the conference is being conducted for EPA's direct use and
benefit.
4. Registration Fees. Registration fees are payments collected by the assistance recipient from
attendees to a conference. Project officers managing assistance agreements that support
conferences should always find out in advance whether registration fees will be collected, and if so,
how those fees will be used. Project officers should address the definition and disposition of
program income in a term and condition of the assistance agreement. See 40 CFR Parts 30.24 and
31.25. Registration fees are considered program income, under the grant regulations, if the activity
generating the fee is within the scope of work and is funded by the assistance agreement. In such
cases, registration fees, as program income, must be accounted for and used to defray allowable
costs under the agreement. Fees for events conducted independently of the assistance agreements,
which are not financed under the assistance agreement, are not subject to program income rules.
D. Use of EPA Logo. Use of the Agency's logo in connection with promotion or sale of non-
government produced goods or services is forbidden. See EPA Order 1015.2A, "EPA Seal and Agency
Identifier." Promotional material for conferences conducted under grants and cooperative
agreements may acknowledge that the conference receives financial support from the Agency under
an assistance agreement, but cannot use the logo on a conference brochure in a manner that
implies that the conference is being conducted by EPA. These conferences should be described as
the recipient's event, not EPA's.
E. Lobbying. Federally funded conference activities cannot include lobbying. See OMB Circulars A-21,
A-87, and A-122.
F. Printing of Conference Material. An assistance recipient conducting a conference may use its
grant funds for printing conference material (e.g., brochures/proceedings/reports). EPA may also
print conference materials as a form of in-kind assistance provided the Agency follows GPO printing
procedures.
G. EPA's Use of Assistance Recipients' Conference Proceedings and Reports. The Agency has the
irrevocable and non-exclusive right to reproduce and publish, use, or authorize others to use
conference proceedings and reports for federal government purposes. However, EPA's use of a
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conference proceeding or report must be incidental to the principal purpose of the assistance
agreement. See EPA Order 5700.1 and 40 CFR Parts 30.36 and 31.34.
H. Free Attendance by EPA Employees. Agency employees may attend recipient conferences as part
of their official duties. However, the number of employees attending the conference without paying
registration fees must not create the appearance that the conference is being conducted for EPA's
direct use and benefit.
I. Location. All conferences, meetings or training seminars EPA sponsors or funds, in whole or in
part, which are held in hotels or motels must comply with the Hotel and Motel Fire Safety Act of
1990. This applies to the government of the District of Columbia only when it expends federal funds
for a conference and to non-federal entities when government funds are provided for the
conference. A list of hotels and motels that comply with the Act can be found in the monthly
publication of the Federal Travel Directory issued by GSA. See the EPA Travel Manual, Chapter
4.2.(d) and Federal Travel Regulations, 41CFR Parts 301-16 and 301-17.
CHAPTER 4: JOINTLY SPONSORED CONFERENCES
A. Supporting a Jointly Sponsored Conference -- Overview. "Co-sponsorship" occurs when EPA and a
nonfederal entity share a mutual interest in the subject matter and jointly develop a conference
related to EPA's mission. The co-sponsors must have a substantial interest in the subject matter of
the conference although their individual goals may be different. After you have reviewed Chapter 1
and decide that the conference may be "jointly sponsored," you should also consult EPA Ethics
Advisory 96-15, "Guidance on Co-sponsoring Conferences," which covers restrictions on jointly
sponsored conferences. In order to avoid any misunderstandings when you hold a jointly sponsored
conference, it is important that EPA have an advance written agreement with its co-sponsor(s)
describing the intended roles and responsibilities of each co-sponsor.
B. Areas of Concern.
1. Appearance. EPA may actively seek out prospective co-sponsors. Whether EPA is actively seeking
or has been approached with a co-sponsorship proposal, it is important to avoid:
(a) Appearance of coercion, that is, creating the reasonable impression that EPA is coercing or being
coerced by an outside entity to become a co-sponsor.
(b) Appearance of favoritism. To avoid creating the appearance that EPA is favoring certain entities,
we should, where practicable, inform all similarly situated nonfederal entities of the opportunity for
co-sponsorship. We should be able to explain why we chose a particular co-sponsor over another.
(c) Appearance of EPA endorsement of the policies, activities, or products of the co-sponsor. Co-
sponsorship does not imply the Agency's endorsement of the co-sponsor's general policies, activities
or products, and event-related materials. Nonfederal sponsors must agree to clear all promotional
materials for the event with the Agency.
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(d) Appearance of improper influence on EPA decisions. When seeking to co-sponsor a conference
with an entity that seeks some official action by EPA, is regulated by EPA, or seeks EPA funding, you
should consult your Ethics Advisor.
2. Augmentation of Appropriated Funds.
(a) No "funds only" Co-sponsorships. Co-sponsorships improperly augment EPA appropriations when
the nonfederal entity contributes only funds, logistical services, or other material support, but does
not actively participate in developing the program. In that case, it is not really a jointly sponsored
conference, but "our" conference for which we have received outside funds. For the same reason,
co-sponsors must have a demonstrable substantive interest in the subject matter of the event.
(b) Events Solely for Government Employees. To avoid improper augmentation of appropriations,
EPA should not co-sponsor events which will be attended only by federal employees.
(c) Registration Fees. Generally, registration fees collected by EPA, or its contractors, must be
deposited in the Treasury as miscellaneous receipts, as required by 31 U.S.C. 3302. If authorized by
EPA, an assistance recipient may retain and use conference fees as "program income." (See Chapter
3.) A co-sponsor, who does not receive assistance, may also collect fees to cover its share of
expenses (e.g., expenses a co-sponsor, rather than EPA, is obligated to pay if there is a shortfall in
fees). To avoid misunderstandings, you should have an advanced written agreement on who collects
fees and their use. For additional guidance, consult Ethics Advisory 96-15.
3. Lobbying. Since appropriated funds are being used to support EPA co-sponsored conferences, the
Anti-Lobbying Act of 1919 and any government-wide lobbying restriction contained in an
Appropriation Act is applicable. Although information regarding the substance of pending legislation
can be a part of a conference agenda, the conference cannot be a forum for encouraging a
"grassroots" lobbying campaign to influence Congress. For additional guidance, see memorandum
from OGC, "Appropriation Act Lobbying Restrictions," dated July 9, 1997.
C. Instruments -- Overview. For jointly sponsored conferences, acquisition instruments, as discussed
in Chapter 2, or cooperative agreements, as discussed in Chapter 3, may be used. Choice of
instruments, or use of more than one instrument, should be carefully considered in order to ensure
that EPA's costs, as well as an assistance recipient/co-sponsor's costs, are allowable under the
chosen instrument. See Section D of this chapter for an example of a jointly sponsored conference
involving both acquisition and assistance instruments, and Section E regarding allowability of costs.
1. Acquisition. EPA may undertake its responsibilities as a co-sponsor of a conference with
contractual and other support discussed in Chapter 2 of this guide. See also OAM's guide, "Your
Preparation Guide for Conferences/Meetings/Training."
2. Assistance Agreements may be used to support the co-sponsor's efforts in connection with the
conference as long as the financial assistance is used to support a public purpose rather than for
EPA's direct use or benefit (examples of direct use or benefit are to assist in development of Agency
regulations or guidance, evaluate EPA programs, or discuss the Agency's positions with
stakeholders). Jointly sponsored conferences require the involvement of the Agency. Therefore,
cooperative agreements rather than grants should be used to fund these conferences, and the
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program's substantial involvement would be included under the "terms and conditions" of the
assistance agreement.
Even under a cooperative agreement, the Agency's substantial involvement must avoid the
appearance of circumventing the invitational travel restrictions. See the Standards of Ethical
Conduct for Employees of the Executive Branch (5 CFR 2635) and also Chapters 2 and 3 of this guide
for details. If assistance funds are used to pay nonfederal travel expenses, the decision as to who
receives transportation and subsistence expenses is the recipient's, not EPA's. The Agency should
avoid even the appearance of directing the recipient to provide travel to specific individuals. See
Chapter 3 of this guide for details.
D. Funding Instruments: Hypothetical Example of a Jointly Sponsored Conference Using Multiple
Instruments. EPA, an association of state governmental agencies, a tribal organization, and a civil
rights non-governmental organization (NGO) decide to co-sponsor a conference on environmental
justice (EJ). EPA chairs an Interagency Working Group on EJ under the EJ Executive Order and has
taken a leading role in addressing EJ concerns. The conference provides a wide range of interested
parties with information on various perspectives on EJ and governmental implementation. Speakers
include federal and state officials, tribal representatives, academics, minority community activists,
and representatives of environmental and civil rights NGOs. The conference is open to attendance
by federal, state, tribal, and local government staff, members of tribes, interested citizens, university
faculty and students, and industry and business representatives from throughout the United States.
The co-sponsors work together to develop the substantive agenda, identify speakers and panelists,
and promote attendance. Approximately 70% of the attendees are nonfederal.
The following are examples of funding instruments, and an explanation of why they are - or are not
- appropriate for funding certain conference costs:
1. Contract.
• EPA provides logistical support for the conference through a contractor. Because EPA is a co-
sponsor of the conference, this is appropriate.
• One of the non-EPA co-sponsors asks the contractor to make travel arrangements for some
students to attend the conference. This is not appropriate. First, the contractor may only
take direction from the authorized EPA project officer or contracting officer. Second,
because simply attending the conference does not meet the criteria for invitational travel
under 5 U.S.C. 5703, the students' travel is not an allowable cost under an EPA contract.
2. Cooperative Agreements.
(a) Existing cooperative agreement between EPA and the co-sponsoring association of state
governmental agencies:
• The purpose of the association's cooperative agreement is to carry out activities related to
implementation of EJ requirements, including collecting and analyzing economic and social
science data on siting hazardous waste facilities and disseminating this information to local
governments and communities. The association pays the travel costs of some local officials
and community leaders to attend the conference. The costs are allowable because they
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further a purpose of the cooperative agreement, and the association, rather than EPA or its
contractor, decided who would receive the travel assistance and made all travel
arrangements. The association's participation in the conference was intended principally to
further the interests of the association and its membership rather than to provide logistical
or other services to EPA.
(b) New Cooperative Agreement between EPA and the tribal organization co-sponsor:
• The purpose of the cooperative agreement is to assist tribes in developing the capacity to
understand environmental issues affecting their communities and to participate in solving
their environmental problems. One of the activities under the cooperative agreement is co-
sponsorship of the conference. Costs associated with this activity are for publicizing the
conference, developing printed material for the conference about tribal EJ concerns, paying
travel expenses for tribal speakers and attendees, and producing an EJ information source
book for tribes and tribal community groups to use after the conference. A cooperative
agreement is appropriate because EPA is substantially involved in the tribal association's
capacity building activities, including joint sponsorship of the conference.
• The tribal organization also decides to sponsor a social reception at the conference,
including alcoholic beverages, food, and Native American music. The costs of the reception
are not allowable under the cooperative agreement because they are for entertainment.
This is an independent event and not part of the co-sponsored conference, therefore EPA
(and its contractor) is not involved in the planning or organizing of the reception. However,
information materials for the conference can include a reference to the event. See Ethics
Advisory 96-15.
E. Allowability of Costs Overview. Only a contracting officer or a grants award official has the
authority to obligate the federal government to expend funds. If you are not a contracting officer,
you cannot make any financial commitments to hotels or other vendors. Anyone who undertakes to
commit the government to expend funds without authority risks being held personally liable by the
vendor for payment and subject to EPA disciplinary action.
The cost principles and regulations applicable to the selected funding instruments remain in effect.
Joint sponsorship does not affect the rules regarding allowability of costs under contracts or
assistance agreements (cooperative agreements). See Chapter 3, Section C of this guide for
allowability of costs under assistance agreements.
F. Issues Relating to Jointly Sponsored Conferences.
1. Free Attendance for EPA Employees. If EPA and the nonfederal co-sponsor agree that Agency
employees will be allowed to attend the event for free, they may do so at the discretion of their
supervisor. Free attendance includes the waiver of all or part of any registration fee, and the
provision of food, refreshments, entertainment, instruction, and materials furnished to all attendees
as part of the event at the co-sponsor's expense. It does not include travel expenses, lodging, or
meals taken other than in a group setting with all attendees. If EPA employees are to receive a
waiver of registration fees, this information should be documented in an advance written
agreement with the co-sponsor. See Ethics Advisory 96-15, "Guidance on Co-Sponsoring
Conferences."
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2. EPA Property and Services. EPA supplies and property can be used by the nonfederal co-sponsor
only to directly support the jointly sponsored event. For example, you should not provide the co-
sponsor with franked envelopes without careful monitoring of their use. See the Standards of Ethical
Conduct for Employees of the Executive Branch (5 CFR 2635, Subpart G, "Misuse of Position" Aug.
1992).
3. Social Events. EPA may not be a co-sponsor of an event that is primarily social in nature. However,
EPA may jointly sponsor an event that has a social component (such as a modest reception), so long
as the event has a primarily educational or informational purpose that is related to EPA's mission.
Agency assistance funds cannot be used for entertainment. See paragraphs F. 6 and 7 of this
Chapter regarding Food and Refreshments.
4. Co-sponsors' Independent Events. If a co-sponsor independently funds (not using federal funds or
its match) a discrete portion of the conference (e.g., a reception), Agency staff should not assist the
co-sponsor in planning or organizing this event except to the extent necessary to coordinate the
overall program. In addition, Agency property or facilities should not be used for this purpose.
However, informational materials about the overall conference may include information about the
co-sponsor's independent activity. Seethe Standards of Ethical Conduct for Employees of the
Executive Branch (5 CFR 2635 Subpart G, "Misuse of Position" Aug. 1992). We recommend you
consult OGC's Finance and Operations Law Office or your Regional Counsel for further guidance.
5. Fundraising. EPA shall not assist in fundraising for the co-sponsor's share of the event. Where a
co-sponsor intends to solicit funds from other sources for its share of costs, EPA should receive
assurance that: (1) the solicitation will make clear that the requester is the co-sponsor, not EPA; (2)
the co-sponsor will not imply that EPA endorses any fundraising activities; and (3) any gifts will be
used solely for co-sponsor's share of expenses, not EPA's.
6. Food and Refreshments for EPA Employees. EPA may not use appropriated funds for food and
refreshments for EPA employees attending co-sponsored events at their official duty stations except
as authorized by the Government Employees' Training Act at 5 U.S.C. 4101.
If a nonfederal co-sponsor imposes a charge for conference related meals that it furnishes, the
Agency can pay for the meals provided: (1) the meals are incidental to the meeting (in other words,
the participants are getting together to do more than eat); (2) the employee's attendance at the
meals is necessary to full participation in the business of the conference; and (3) the employee is not
free to take the meals elsewhere without being absent from essential formal discussions, lectures or
speeches concerning the purpose of the conference. See GAO's Principles of Federal Appropriations
Law, Volume I, Chapter 4, pages 4-88 and 4-89. Agency employees who are in travel status can
include the meal cost on the travel voucher, and must also adjust their per diem claim downward by
a formula which takes into account the fact that meal costs were reimbursed as part of the meeting
expenses.
If EPA employees are attending a co-sponsored event where food and refreshments are provided by
the nonfederal co-sponsor, without charge, they may participate if authorized under the Ethics
Regulations. Otherwise, the rules cited in Chapter 2 of this guide apply. See also Ethics Advisory 96-
15.
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7. Food and Refreshments for Nonfederal Attendees. EPA may not use appropriated funds for food
and refreshments for nonfederal attendees unless: (1) the recipient is participating as a speaker in a
training event (see the Government Employees Training Act, 5 U.S.C. 4101);
(2) the recipient is providing a direct service to the Agency and has received "invitational travel
orders" under 5 U.S.C. 5703, in which case other travel expenses may also be paid; or (3) the
Administrator's "reception and representation" fund is used. Also, conference attendees may
voluntarily "pass the hat" to pay for food and refreshments.
8. Use of EPA Logo. The official logo may be used on promotional and conference materials for
conferences EPA jointly sponsors with outside groups. The co-sponsor's logo should also be used on
promotional and conference materials and should be displayed at least as prominently as EPA's. See
EPA Order 1015.2A "EPA Seal and Agency Identifier."
9. Printing of Conference Material. EPA must comply with GPO printing requirements if it prints
conference material (e.g., brochures or conference proceedings and reports). See Chapter 2 for
additional guidance. An assistance recipient (the co-sponsor) may use its grant funds to print
conference material, as discussed in Chapter 3.
10. Location. If EPA is responsible for selecting the conference site and paying for the facility and the
conference involves travel by 30 or more EPA employees, or other travelers whose expenses are
being paid by EPA, a cost comparison justifying the location must be prepared. See the EPA Travel
Manual, Chapter 3.16. (a), (b) and (c).
All conferences, meetings or training seminars EPA sponsors or funds, in whole or in part, which are
held in hotels or motels, must comply with the Hotel and Motel Fire Safety Act of 1990. This applies
to the government of the District of Columbia only when it expends federal funds for a conference
and to non-federal entities when government funds are provided for the conference. A list of hotels
and motels that comply with the Act can be found in the monthly publication of the Federal Travel
Directory issued by GSA. See the EPA Travel Manual, Chapter 4.2. (d) and for additional information,
see Federal Travel Regulations, 41CFR Parts 301-16 and 301-17.
CHAPTER 5: MAINTAINING PROPER DOCUMENTATION
Clear and complete documentation is crucial for effective management of assistance and acquisition
instruments. Fully documenting the who, what, where, when, and why of your conference will be
very helpful in the event of an audit, when you will be asked to provide up-to-date and complete
records.
Depending on the funding instrument used to support a conference, the documentation required
will differ. For required documentation on contract files, you should consult the Contract
Management Manual and the Contract Administration Training Manual, Chapter 6, which provides a
helpful file plan. For required documentation for assistance agreements, you should consult the
Managing Your Assistance Agreement Training Manual, Appendix Q, Official EPA Project File, and
Grants Management Fact Sheet No. 10, "Assistance Agreement File Documentation."
One of the most critical documents for assistance agreements is the decision memorandum,
justifying the use of an assistance agreement versus a contract to support conference activities. If
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the objective of the project is to conduct a conference, GAD's "Guidance for Preparing an Assistance
Funding Package/' dated April 28, 1997, requires that you address the following in the
memorandum:
• Who is initiating the conference?
• How will it be advertised?
• Whose logo will be used for materials?
• What is the percentage of participants (i.e., feds, public, state/local)?
• Will the recipient prepare the proceedings and disseminate the information back to the
targeted community?
When you hold a jointly sponsored conference, in order to avoid any misunderstandings, it is
important that EPA have an advance written agreement with co-sponsor(s) describing the intended
roles and responsibilities of each co-sponsor. The following is a checklist of some important
documents that should be retained in the official project file for an assistance agreement or a
contract:
• Application for assistance agreement
• Assistance agreement (agreement joint application)/award documents or Contract
• Co-Sponsorship agreement for conferences
• Decision memo for assistance agreements
• AA/RA justification for conferences with more than 30 EPA travelers
• Amendments and modifications to the original document(s)
• Financial information/reports, copies of progress reports
• Memoranda/correspondence/agendas/proceedings/papers including programmatic reviews
• Documentation of telephone conversations and meeting reports
• Reviews and audits conducted on the project
• Final reports and closeout information
REFERENCE LIST BY SUBJECT MATTER
A. Introduction.
This is a list, grouped by subject matter (travel, food, etc.), of commonly referenced documents
containing information relating to EPA's and its employees' involvement in conferences. Many of
the documents cited in this reference list and the Best Practices Guide for Conferences are available
electronically. Office of the Comptroller Policy Announcements and Transmittals (all OC Policy
Announcements and Transmittals issued before May 1995 have been incorporated into the EPA
Travel Manual) and the EPA Travel Manual can be accessed at
http://intranet.epa.gov/ocfo/policies/direct/2550b.pdf. The Contracts Management Manual and
Procurement Policy Notices can be accessed at http://intranet.epa.gov/oamintra. Many DIG reports
can be found on EPA's Home Page under Offices and Labs/Office of the Inspector General, also
check http://www.epa.gov/oigearth/.
You can also access GAO Comptroller General Decisions (since October 1995) and the Principles of
Federal Appropriations Law (the Red Book) through GAO's home page at www.gao.gov. The Code of
Federal Regulations and the United States Code are accessible through EPA's home page under
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Regulations. Executive Orders and OMB Bulletins and Circulars can be accessed through
www.whitehouse.gov.
B. General Acquisition and Assistance Requirements.
Contracts Management Manual: Covers issues related to the EPA acquisition process. Procurement
Policy Notice No. 97-01 - Required Practices Concerning Subcontracts, Jan. 8, 1997: Includes
prohibition against "directed subcontracting."
Simplified Acquisitions Made Easy, April 1998: Provides accessible policies, procedures and
guidelines for simplified acquisitions. This Q&A guidance is provided on the OAM intranet site
(http://intranet.epa.gov/oamintra)
Procurement Policy Notice No. 95-01- Procurement of Items for EPA Sponsored Commemorations
and Events, April 10, 1995: Provides guidance regarding the purchase of items to be distributed to
the general public and EPA employees. EPA Order 5700.1, Policy for Distinguishing Between
Acquisition and Assistance, March 22, 1994: Clarifies the criteria for and to achieve consistency in
selection and use of contracts, cooperative agreements and grants by all EPA offices and
laboratories. Memorandum from GAD Director to IAG Project Officers, Sept. 30, 1996: Provides IAG
decision memorandum guidance, pre-award activities, and subcontractor selection.
Managing Your Financial Assistance Agreement Training Manual - Project Officer Responsibilities,
EPA 202-B-94-001, Oct. 1996: Identifies administrative responsibilities of project officers, grants
management offices (GMO), financial management offices (FMO), and other players involved in the
management of assistance agreements.
Participant Reference Manual - Office of Research and Development Project Officer's Course for
Assistance Management (Grants and Cooperative Agreements) Sept. 1995: Identifies administrative
responsibilities of project officers, grants management offices (GMO), financial management offices
(FMO), and other players involved in the management of assistance agreements.
Grants Management Fact Sheet No. 9 - Competition for Assistance Agreements: Addresses the need
to encourage competition in the award of assistance agreements.
Grants Management Fact Sheet No. 10 -Assistance Agreement File Documentation: Addresses the
need to adequately document assistance agreement files, particularly with regard to relevant
communication.
Guidance for Preparing an Assistance Funding Package, April 28, 1997: Addresses the need for
justification in Decision Memoranda when using assistance for conferences.
C. Conference Planning and Site Selection
The EPA Travel Manual (Chapter 2550B of the Resources Management Directives System) of 1995:
Incorporates all travel-related Policy Announcements and Transmittals issued by the Office of the
Comptroller after May 1988 through May 1995. See Chapter 5.
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Your Preparation Guide for Conferences/Meetings/Training, May 1995: Explains how to provide
logistic support for conferences through small purchase procurement.
EPA Ethics Advisory 96-15, Guidance on Co-Sponsoring Conferences, Oct. 17, 1996: Addresses legal
and ethical issues that arise in connection with co-sponsored conferences.
EPA Order 1015.2A - EPA Seal and Agency Identifier, Dec. 27, 1978: Updates requirements for use of
official EPA seal and provides directions for use of Agency Identifier.
EPA Ethics Advisory 94-17- Providing Speakers at Conferences, Seminars, and Similar Events, April
13, 1995: Suggests things to consider when EPA employees are asked to actively participate in non-
government conferences.
Committee on Integrity and Management Improvement Bulletin 95-4, Conferences and Meetings,
May 1995: Highlights EPA's policy on scheduling conferences and meetings.
D. Travel
The EPA Travel Manual (Chapter 2550B of the Resources Management Directives System) of 1995:
Incorporates all travel-related Policy Announcements and Transmittals issued by the Office of the
Comptroller after May 1988 through May 1995.
On The Way With EPA, A Reference Guide for Travel: Answers commonly asked questions regarding
official temporary duty (TOY) travel for EPA employees and EPA funded travel for non-EPA
employees (invitational travelers).
EPA Ethics Advisory 92-26, Revised Rule on Acceptance of Travel Expenses, Dec. 24, 1992: Advises
that assistance funds cannot be used to fund travel for federal employees because this would
circumvent limits on government travel ceiling. See also EPA Ethics Advisory 96-19, New One-Page
Travel Acceptance Form, Dec. 17, 1996, which provides a revised attachment to Ethics Advisory 92-
26; and EPA Ethics Advisory 97-05 Addendum to EPA Ethics Advisory 92-26, Accepting Travel
Expenses, March 13, 1997.)
EPA Ethics Advisory 94-17, Providing Speakers at Conferences, Seminars, and Similar Events, April
13, 1995: Provides additional guidance on related travel issues.
Related OGC Memoranda
Travel Expenses of Non-Government Employees, June 1982: Discusses the rules governing EPA's
payment of travel expenses of non-government employees who attend meetings sponsored by EPA.
Compensation and Reimbursement of FACA Committee Members and Consultants, June 1, 1993:
Explains when EPA can use contract funds to pay for travel, and when it must use Agency travel
funds.
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Reimbursement of Travel and Per Diem Expenses of Federal Advisory Committee Members, June 22,
1993: Advises that travel and per diem expenses of advisory committee members may only be paid
through the issuance of invitational travel orders and charged to an appropriate EPA travel account.
Reimbursement of Travel Expenses of Members of Federal Advisory Committees Through an
Interagency Agreement, Sept. 7, 1993: Discusses whether a contract issued under an IAG can be
used to pay travel expenses of FACA members.
Payment of Travel Expenses of Non-Federal Participants at EPA Meetings, Sept. 22, 1993: Discusses
whether it is appropriate to pay for the travel expenses of individuals, such as peer reviewers, by
contract.
E. Food
The EPA Travel Manual (Chapter 2550B of the Resources Management Directives System) of 1995:
Incorporates all travel-related Policy Announcements and Transmittals issued by the Office of the
Comptroller after May 1988 through May 1995. See Chapter 5.5.
Procurement Policy Notice (PPN) 94-10 - Contracting for Meals and Refreshments for Government
Employees, Aug. 17, 1994: Sets forth the restrictions for direct acquisition of EPA employees' meals
and refreshments, i.e., meals at conferences/meetings as part of authorized training, or meals or
food and beverages at an official Agency ceremony.
F. Federal Advisory Committee Act Meetings (FACA)
The EPA Travel Manual (Chapter 2550B of the Resources Management Directives System) of 1995:
Incorporates all travel-related Policy Announcements and Transmittals issued by the Office of the
Comptroller after May 1988 through May 1995. See Chapter 3.3 and 3.6.
Related OGC Memoranda
Compensation and Reimbursement of FACA Committee Members and Consultants, June 1, 1993:
Explains when EPA can use contract funds to pay for travel, and when it must use Agency travel
funds.
Reimbursement of Travel and Per Diem Expenses of Federal Advisory Committee Members, June 22,
1993: Advises that travel and per diem expenses of advisory committee members may only be paid
through the issuance of invitational travel orders and charged to an appropriate EPA travel account.
It is not appropriate to reimburse travel or per diem expenses of advisory committee members
through a contract.
Reimbursement of Travel Expenses of Members of Federal Advisory Committees Through an
Interagency Agreement, Sept. 7, 1993: Discusses whether a contract issued under an IAG can be
used to pay travel expenses of FACA members.
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G. Lobbying
Related OGC Memorandum
Appropriation Act Lobbying Restrictions, July 9, 1997: Provides guidance on lobbying restrictions.
Subject: Appendix I - Best Practices Guide for Conferences
Category: Grants Policy Issuance, Project Officers Manual
Signer: Elizabeth Craig
Signed Date: 11/20/1998
Document ID: GPI-98-11
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Contact Information
• • .
U. S. Environmental Protection Agency (EPA Headquarters)
(ATTN: Grants Administration Division - Mail Code 3903R)
1200 Pennsylvania Avenue, N.W.
Washington, D.C. 20460
202-564-5315
National Home Page http://www.epa.gov
U. S. EPA Region 1
5 Post Office Square - Suite 100
Boston, MA 02109-3912
1-888-372-7341/617-918-1111
General http://www.epa.gov/region01/
Application http://www.epa.gov/regionl/grants
States: Connecticut, Maine, Rhode Island, Massachusetts, New Hampshire, Vermont
U. S. EPA Region 2
290 Broadway
New York, New York 10007-1866
212-637-3000
General http://www.epa.gov/region02/
Application http://www.epa.gov/region02/grants/kit.htm
States: New Jersey, New York, Puerto Rico, Virgin Islands
U. S. EPA Region 3
1650 Arch Street
Philadelphia, PA 19103-2029
215-814-5000
General http://www.epa.gov/region03/
Application http://www.epa.gov/region03/grants/index.htm
States: Delaware, Virginia, Maryland, Pennsylvania, District of Columbia, West Virginia
U. S. EPA Region 4
61 Forsyth Street, SW
Atlanta, GA 30303-3104
404-562-9900
General http://www.epa.gov/region04/
Application http://www.epa.gov/region4/grants/
States: Alabama, Florida, Georgia, Kentucky, Mississippi, North Carolina, South Carolina, Tennessee
U. S. EPA Region 5
77 West Jackson Boulevard
Chicago, IL 60604-3507
312-353-2000
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General http://www2.epa.gov/aboutepa/epa-region-5
Application http://www.epa.gov/region5/business/index.htmtffinancial
States: Illinois, Indiana, Michigan, Minnesota, Ohio, Wisconsin
U. S. EPA Region 6
Fountain Place 12th Floor, Suite 1200
1445 Ross Avenue
Dallas, TX 75202-2733
214-665-6444
General http://www.epa.gov/region06/
Application http://www.epa.gov/earthlr6/6md/grants.htm
States: Arkansas, Louisiana, New Mexico, Oklahoma, Texas
U. S. EPA Region 7
901 North 5th Street
Kansas City, KS 66101
913-551-7003
General http://www.epa.gov/region07/
Application http://www.epa.gov/region07/economics/index.htm
States: Missouri, Nebraska, Iowa, Kansas
U. S. EPA Region 8
1595 Wynkoop St.
Denver, CO 80202-1129
303-312-6312
General http://www.epa.gov/region08/
Application http://www.epa.gov/region8/grants/
States: Colorado, Montana, Wyoming, South Dakota, North Dakota, Utah
U. S. EPA Region 9
75 Hawthorne Street
San Francisco, CA 94105
415-947-8000/866-EPA-WEST
General http://www.epa.gov/region09/
Application http://www.epa.gov/Region9/funding/applying.html
States: Arizona, Hawaii, California, Nevada
U. S. EPA Region 10
1200 Sixth Avenue, Suite 900
Seattle, WA 98101
206-553-1200/800-424-4372
General http://www.epa.gov/regionlO/
The Region 10 Grants Administration Unit offers an online guide to applying for grants at
Application http://vosemite.epa.gov/rlO/omp.nsf/grants/administration
States: Alaska, Idaho, Oregon, Washington
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American Subcontractors Association http://www.asaonline.com
Asian Women in Business http://www.awib.org/
Minority Business Enterprise Legal Defense and Education Fund
http://mbeldef.homestead.com/about.html
National Association of Women Business Owners http://www.nawbo.org
National Black Business Council, Inc. http://www.nbbc.org/
National Center for American Indian Enterprise Development http://www.ncaied.org/
National Minority Business Council http://www.nmbc.org/
National Urban League http://www.nul.org/
CD Publications http://www.cdpublications.com Federal and Foundation Assistance Monitor and
Native American Report
GovCon http://www.govcon.com Commerce Business Daily
Management Concepts http://www.managementconcepts.com publications on how to manage
complex and federally-funded projects
Advisory Council on Historic Preservation, Native American Program http://www.achp.gov/nap.html
American Indian Tribal Portal http://www.epa.gov/tribalportal/index.htm
U.S. Small Business Administration, Office of Native American Affair
http://www.sba.gov/aboutsba/sbaprograms/naa/index.html
USA.gov resources for Tribal Governments and Native Americans
http://www.usa.gov/Government/Tribal.shtml
U.S. Geological Survey, Activities Related to American Indians and Alaska Natives
http://www.usgs.gov/indian/
U.S. Department of Agriculture Forest Service, Office of Tribal Relations
http://www.fs.fed.us/spf/tribalrelations/
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U.S. Department of Energy, Program Areas, Tribal Energy
http://appsl.eere.energy.gov/tribalenergy/
U.S. Department of Energy, Office of Congressional and Intergovernmental Affairs
http://energv.gov/congressional/about-us/contact-us/contacts-tribal-affairs
U.S. Department of Health and Human Services, Office of Intergovernmental Affairs, Office of Tribal
Affairs http://www.hhs.gov/intergovernmental/
U.S. Department of Health and Human Services, Substance Abuse & Mental Health Services
Administration http://www.ncsacw.samhsa.gov/resources/resources-tribal.aspx
U.S. Department of Homeland Security, Federal Emergency Management Agency (FEMA), Tribal
Information http://www.fema.gov/government/tribal/index.shtm
U.S. Department of Housing and Urban Development, Indian Housing—HUD's Office of Native
American Programs (ONAP)
http://portal.hud.gov/hudportal/HUD?src=/program offices/public indian housing/ih
U.S. Department of the Interior http://www.doi.gov/bureaus/index.cfm
• Bureau of Indian Affairs http://www.bia.gov/
• U.S. Department of the Interior, Bureau of Reclamation http://www.usbr.gov/native/
• U.S. Department of the Interior, National Park Service
http://www.nps.gov/history/hps/hpg/tribal/index.htm
U.S. Department of Veterans Affairs, Center for Minority Veterans
http://wwwl.va.gov/centerforminorityveterans/
National Indian Gaming Commission http://www.nigc.gov/
American Indian Environmental Office (AIEO) http://epa.gov/indian/index.htm
Environmental Federal Register Documents http://www.epa.gov/fedrgstr/
Catalog of Federal Domestic Assistance http://cfda.gov
System for Award Management database http://www.sam.gov (replaced Central Contractor
Registration database in 2012)
Chief Financial Officers Council https://cfo.gov/
The website maintained by the Chief Financial Officers Council contains important public financial
management and accounting information.
Department of Transportation's Office of Small Business Programs http://osdbu.dot.gov/
EPA Disadvantaged Business Enterprise (DBE) program http://www.epa.gov/osbp/dbe team.htm
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Excluded Parties List System https://www.sam.gov/
Federal Audit Clearinghouse http://harvester.census.gov/fac
Searchable Database of Single Audit SF-SAC Data
Government Accounting Standards Board http://www.gasb.org/
Inspector General http://www.ignet.gov
The Ignet website is maintained by the Inspector General. It includes a single audit library with
hypertext links to several of the source materials used in the above text.
Interior Business Center
Indirect Cost Services
U.S. Department of the Interior
2180 Harvard Street, Suite 430
Sacramento, CA 95815
Phone: 916.566.7111
http://www.doi.gov/ibc/services/indirect cost services/ICS Services.cfm
Email: ics@nbc.gov
Interior Business Center Indian Tribal Governments Indirect Cost Rate Information
http://www.doi.gov/ibc/services/indirect cost services/indian tribes.cfm
Las Vegas Finance Center
U. S. Environmental Protection Agency
Las Vegas Finance Center
P.O Box 98515
Las Vegas, N.V. 89193-8515
UPS, Federal Express, or Overnight Mail
Las Vegas Finance Center
4220 S. Maryland Parkway, Bldg C
Las Vegas, NV 89119
Phone: (702) 798-2485 Fax: (702) 798-2423
List of Debarred Contractors http://www.sam.gov
Mid-American Intergovernmental Audit Forum www.auditforum.org Guide on Selecting an External
Auditor
Minority Business Development Agency http://www.mbda.gov/ and Phoenix-Opportunity database
Minority Business Enterprise/Women Business Enterprise (MBE/WBE) instructions
http://www.epa.gov/osbp/dbe team.htm
Native American Finance Officers Association http://www.nafoa.org/
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Office of the Inspector General 1.888.546.8740 for all non-government locations outside the
Washington, D.C. metropolitan local calling area 202.260.4977 for those inside the Washington, D.C.
metropolitan local calling area
Office of Management and Budget http://www.whitehouse.gov/omb/
Office of Small Business Programs http://www.epa.gov/osbp/
• Business Opportunities with EPA http://www.epa.gov/osbp/contracts.htm award notices
and announcements
• Disadvantaged Business Programs http://www.epa.gov/osbp/dbe team.htm
• Newsletters http://www.epa.gov/osbp/newsletters.htm
• OSBP Small Business Vendor Profile system (SBVPS) http://cfpub.epa.gov/sbvps/ database
registry for small and disadvantaged business concerns
• Regional Contacts http://www.epa.gov/sadqfzsu/contactpage.htm
• Regions, states, and agencies http://www.epa.gov/sadqfzsu/states.htm
• Service-Disabled Veterans http://www.epa.gov/osbp/disabledvets.htm
• Small Business Ombudsman http://www.epa.gov/sbo/ strategic guides to small business
and environmental management
OMB Circular A-87
http://www.whitehouse.gov/sites/default/files/omb/assets/omb/fedreg/2005/083105 a87.pdf
OMB Circular A-133
http://www.whitehouse.gov/sites/default/files/omb/assets/al33/al33 revised 2007.pdf
Subcontracting with DOT directory of DBEs
http://osdbuweb.dot.gov/Procurement/subcontracting directory.cfm
U.S. EPA Office of Grants and Debarment
Mail Code: 3901
1200 Pennsylvania Avenue, N.W.,
Washington, D.C. 20460
Phone:(202)564-5315
General http://www.epa.gov/ogd
Application http://www.epa.gov/ogd/AppKit/index.htm
This web site links to:
1 How to apply 5 Catalog of Federal Domestic
2 Application kit for Federal Assistance
Assistance 6 Grant Award Data
3 Funding opportunities 7 Quality Assurance
4 Regulations 8 Suspension and Debarment Division
U.S. Small Business Administration http://www.sba.gov
• Dynamic Small Business Search http://dsbs.sba.gov/dsbs/search/dsp dsbs.cfm
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Replace text with information on key contacts for your award. Keep in a handy yet confidential location.
Questions
Dates
Zip Code
Phone
Phone
Questions
Dates
State
Phone
Email
Surname
Responsibility
Questions
Da tes
Com merits
Title
Organization
Address
Phone
Fax
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Data Universal Numbering System (DUNS) Application Form
The D&B D-U-N-S Request Service
for US Federal Government Contractors and Grantees
Dun & Bradstreet (D&B) provides a D-U-N-S Number, a unique nine digit identification number, for
each physical location of your business. D-U-N-S Number assignment is FREE for all businesses
required to register with the US Federal government for contracts or grants. Online registration is
available at http://fedgov.dnb.com/webform. Or, the telephone number is 1-866-705-5711.
For technical difficulties, contact govt@dnb.com
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GRANTS GOV Applicants Organization Registration
ORGANIZATION REGISTRATION
APPLICANT ACTIONS
* Apply for Grants
• Track My Application
APPLICANT RE SOURCES
• Grant Eligibility
>• Individual Registration
* Organization Registration
• STEP 1 Obtam DUNS Number
•STEP 2 Register with SAM
• STEP 3 Usemame & Password
» STEP 4 AOR Authorization
- STEP 5 Track AOR Status
• Grant Application Process
- Applicant FAQs
" Applicant Resources
- Applicant Tips
Registering as an Organization
This is where the process of registering your organization for access to Grants gov begins Your organization must be registered to apply for grants
Brief Overview of Registration Process
. NOTE: Registration takes, approximately. 3-5 business days; but. allow 4 weeks to complete all steps.
Foreign Registrants: Anyon
Grants.gov registration pro>
government.
•esidtng and doing business outside of the United States is still requited to complete the five steps of the
55, In addition to fulfilling supplementary requirements (or doing business with the United States
STEP 1: Obtain DUNS Number
Same day. If requested by phone (1-866-705-5711). DUNS is provided immediately. If youi organization does not have one. you will need to go to the Dun
8 Bradslreet website at http/tfedgov dnb com/webform o1 to obtain the number 'Information for Foreign Registrants 'Weofoem requests take f-2
bus'^sss days
STEP 2: Register with SAM
Three to five business days or up to two weeks. If you already have a TIN your SAM registration will take 3-5 business days to process If you are
applying for an EIN please allow up to 2 weeks Ensure that your organization is registered with the System for Award Management (SAM) at System for
Award Management (SAM) If your organization is not. an authorizing official of your organization must register
STEP 3: Usemame & Password
Same day. Complete your AOR (Authorized Organization Representative) profile on Grants gov and create your usemame and password You will need to
use your organization's DUNS Number to complete this step Create a Usemame and Password
STEP 4: AOR Authorization
' Same day. The E-Business Point of Contact (E-Biz POC) at your organization must login to Grants gov to confirm you as an Authorized Organization
Represenative (AOR) Please note that there can be more than one AOR for your organization In some cases Ihe E-8iz POC is also the AOR for an
organization 'T>me tfeper.rJs on responsiveness ofyourE-Biz POC
STEP 5: TRACK AOR STATUS
At any time you can track your AOR status by logging in with your usemame and password Login as an Applicant [enter your usemame & password you
obtained in Step 3}
Attention faculty or Staff of Educational Institutions
To submit your application via Grants.gov, you should first check with your Office of Sponsored Programs' (o verify that your
organization is registered with Grants.gov. It is the Authorized Organizational Representative (AOR) of your organization who must
register the educational institution or applicant organization. Most applications by faculty, staff, or other principal investigators are
actually submitted on behalf of the institution at which thev are emoloved: awards are made to the institution. All reoistraiiori sieus for
the institution are completed by the AOR; likewise, the AOR is the person who must actually submit the application to Grants.gov.
j Questions about Giants.gov should be directed first to your Office of Sponsored Programs, which will assist you in submitting your
application. Please provide that office with sufficient notice of your intent to apply using Grants.gov.
The only time it is appropriate to register as an individual with Grants.gov is when you are submitting an application that specifies it is
open only to individuals, such as for an individual fellowship or traineeship.
'Your organization may refer (o the office as Research, Sponsored Research, Grants, Development, or a similar title.
http://www.grants.gov/web/grants/applicants/organization-registration.html
EPA Tribal, U.S. Territories and Insular Areas Administrative and Financial Guidance for Assistance Agreements
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Disadvantaged Business Enterprise (DBE)
MBE/WBE Certification
'Maintaining the Integrity of the Program
Old MBE/WBE Program
Program Comparison
New DBE Program
MBEs and WBEs self-certify their status.
MBEs and WBEs must be certified by EPA, SBA,
DOT, or by state, local, Tribal, or private entities
whose certification criteria match EPA's.
*States are not required to develop or implement
a new certification program.
Self-certified MBEs and WBEs can be counted
toward a recipient's MBE/WBE
accomplishments when reporting on EPA
Form 5700-52A
MBEs and WBEs must be certified in order to be
counted toward a recipient's MBE/WBE
accomplishments.
What Are DBEs, MBEs, and WBEs?
• Disadvantaged Business Enterprises (DBEs) are
• entities owned and/or controlled by a socially and economically disadvantaged
individuals as described by Title X of the Clean Air Act Amendments of 1990 (42
U.S.C. 7601 note) (10% statute), and Public Law 102-389 (42 U.S.C. 4370d) (8%
statute), respectively;
• a Small Business Enterprise (SBE);
• a Small Business in a Rural Area (SBRA);
• a Labor Surplus Area Firm (LSAF); or
• a Historically Underutilized Business (HUB) Zone Small Business Concern, or a
concern under a successor program.
• Minority Business Enterprises (MBEs) are entities that are at least 51% owned and/or
controlled by a socially and economically disadvantaged individual as described by Title X of
the Clean Air Act Amendments of 1990 (42 U.S.C. 7601 note), and Public Law 102-389 (42
U.S.C. 4370d), respectively.
• Women's Business Enterprises (WBEs) are entities that are at least 51% owned and/or
controlled by women (under the 10% and 8% statutes).
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Who is responsible for certifying MBE and WBE firms?
EPA OSDBU Headquarters will be responsible for implementing and processing the
certification of MBE/WBE firms. Regional DBE coordinators will assist by providing forms to
interested firms and fielding general questions. The states have no responsibility to
implement or maintain a certification program for EPA.
Does EPA accept other certifications?
Yes. Under the new DBE Program entities can no longer self-certify. EPA will accept
certifications from:
• SBA and DOT (with U.S. citizenship);
• Tribal, State and local governments, as long as their standards for certification meet
or exceed our own; and
• Independent private organization certifications as long as their standards for
certification meet or exceed our own.
If and entity holds one of these certifications, it is considered acceptable for establishing
MBE or WBE status under EPA's DBE Program, and application for EPA certification is not
needed.
What are the EPA MBE/WBE certification requirements?
• In order to be certified by EPA, an entity must first attempt to be certified by SBA or DOT, or
a Tribal, State, or local government, or by an independent private organization, and be
unsuccessful in that attempt.
• To qualify as a MBE or WBE under EPA's programs an entity must establish that it is at least
51% owned and/or controlled by socially and economically disadvantaged individuals who
are of good character and are citizens of the United States.
• An individual claiming economic disadvantaged status must have an initial and continued
personal net worth of less than $750,000.
What does the certification process entail?
• Applications are filed with EPA OSDBU. Applications can be obtained from EPA OSDBU, from
regional DBE Coordinators, and from EPA OSDBU's website,
http://www.epa.gov/osbp/dbe forms.htm. The application includes the following:
o An attestation to the accuracy and truthfulness of the information on the
application form by sworn affidavit, or an unsworn declaration executed under
penalty of perjury of the laws of the United States.
o The application must include evidence demonstrating that the entity is owned
and/or controlled by one or more individuals claiming disadvantaged status, along
with certifications or narratives regarding the disadvantaged status of such
individuals.
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o The application must include documentation of a denial of certification by a Federal
agency, State government, local government, Indian Tribal government, or
independent private organization, if applicable.
• Once applications are filed, EPA OSDBU will advise each applicant within 15 days, whether
the application is complete and suitable for evaluation and, if not, what additional
information or action is required.
• EPA OSDBU will make its certification decision within 30 days of receipt of a complete and
suitable application package.
How does Certification affect a firm's participation in the overall DBE program?
• In order for a firm to be counted towards a recipient's Minority Business Enterprise and
Women Business Enterprise utilization, a firm must be certified.
• Non-certified MBEs and WBEs may be used by recipients for their procurement needs.
However, those firms cannot be counted toward their MBE/ WBE accomplishments.
• DBE Program outreach efforts apply to all DBEs, not just MBEs and WBEs.
EPA Tribal, U.S. Territories and Insular Areas Administrative and Financial Guidance for Assistance Agreements
Last September 2013 Si of 519
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The DBE instructions were formerly addressed as Minority Business Enterprise (MBE)/Women
Business Enterprise (WBE) instructions. The most current version is available online at
http://www.epa.gov/osbp/dbe team.htm.
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EPA Office of Small Business Programs
(Formerly the Office of Small and Disadvantaged Business Utilization
"OSDBU")
New Disadvantaged Business Enterprise Program
"Increasing Opportunities for Disadvantaged Businesses under EPA Financial
Assistance Agreements"
What is The Disadvantaged Business Enterprise Program?
• It is EPA's policy that recipients of EPA financial assistance through grants and cooperative
agreements award a "fair share" of subagreements to small, minority, and women-owned
businesses. Since each is a separate entity, the objective is to assure that each of these
business entities is given the opportunity to participate in subagreements awards under EPA
financial assistance agreements. This policy applies to all subagreements for equipment,
supplies, construction, and services under all EPA grants, cooperative agreements, and lAGs.
• The EPA Office of Small Business Programs (OSBP) is responsible for establishing policy and
providing procedural guidance for the utilization of small, minority and women-owned
businesses under the Agency's financial assistance programs through its Disadvantaged
Business Enterprise (DBE) Program, formally the Minority Business Enterprise and
Women-owned Business Enterprise Program (MBE/WBE).
• The DBE Program is an outreach, education, and goaling program designed to increase the
participation of DBEs in procurements funded by EPA assistance agreements. The EPA DBE
Program encompasses many of the components of the former MBE/WBE Program and
includes many new features.
Why Does the Program Exist?
• The program was mandated by congress in response to the large number of procurement
opportunities available through assistance agreements vs. Contracts. At EPA, assistance
agreement dollars are approximately four times as much as contract dollars. The statutory
authority for the program is as follows:
• Public Law 101-549, Nov 15,1990 (clean air act):
To the extent practicable, not less than 10% made available to DBEs.
• Public Law 102-389, Oct 6,1992 (clean water act):
To the fullest extent possible, at least 8% made available to socially and
economically disadvantaged concerns, including HBCUs and women.
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How We Achieve the Purpose of the Program?
Recipients of EPA financial assistance agreements are required to seek, and encouraged to
utilize small, minority, and women-owned businesses for their procurement needs under the
financial assistance agreement. This is done through the inclusion of terms and conditions in the
financial assistance agreement. The key functional components of the DBE Program are as
follows:
- Fair Share Objectives
- Six Good Faith Efforts and Contract Administration Requirements
- MBE/WBE Reporting
- MBE/WBE Certification
How does the new DBE Program compare with the old MBE/WBE Program in each functional
component?
Overall
Old MBE/WBE Program New DBE Program
Known as the Minority-Owned Business
Enterprise and Women-Owned Business
Enterprise (MBE/WBE) Program.
Now known as the Disadvantaged Business
Enterprise (DBE) Program. MBEs and WBEs are a
part of the larger universe of DBEs.
EPA Tribal, U.S. Territories and Insular Areas Administrative and Financial Guidance for Assistance Agreements
Last September 2013 84 of 519
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Fair Share Objectives
Old MBE/WBE Program
New DBE Program
Recipients must negotiate fair share
objectives with the Agency.
Recipients must negotiate fair share objectives with
the Agency. Proposed fair share objectives and
supporting documentation must be submitted
within 120 days after the acceptance of the
assistance award.
For Superfund grants, fair share objectives
must be negotiated before funds may be
expended for procurement under the
financial assistance agreement.
For all grants, fair share objectives must be
negotiated before funds may be expended for
procurement under the financial assistance
agreement.
Fair share objectives must be based on an
availability analysis, disparity study, or other
supporting data and documentation.
No Change
Fair share objectives will remain in effect for
3 fiscal years, unless there are significant
changes to the data supporting the fair
share objectives.
No Change
Recipients may adopt the fair share
objective of another recipient.
No Change. Recipients will affirm the acceptance of
the other recipient's fair share objective in the
grant terms and conditions.
No exemptions to the fair share objectives
requirement.
The following are exemptions from the fair share
objective requirements:
• Grant and loan recipients receiving a total
of $250K or less in EPA financial assistance
in a given fiscal year.
• Tribal recipients of Performance
Partnership Eligible grants under 40 CFR
Part 35, Subpart B.
- There is a 3-year phase in period for
the requirement to negotiate fair
share goals for Tribal and Insular
Area recipients.
• Recipients of Technical Assistance Grants.
EPA Tribal, U.S. Territories and Insular Areas Administrative and Financial Guidance for Assistance Agreements
Last September 2013 85 of 519
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The Six Good Faith Efforts and Contract Administration
Requirements
Old MBE/WBE Program
New DBE Program
Following the "Six Affirmative Steps" under
40 CFR Part 31, and the Six Positive Efforts
under 40 CFR Part 30 were required by all
grantees.
The "Six Good Faith Efforts" combine the "Six
Affirmative Steps" and the "Six Positive Efforts" and
are still required by all grantees. The substance of
the efforts has not changed.
No protections for DBE Subcontractors
Several mechanisms are in place to protect DBE
Subcontractors:
• 30 day payment provision, notifications of
DBE terminations, and continuing the Six
Affirmative Steps after termination of a DBE.
• Completion of 3 new forms to prevent "bait
and switch" tactics. None of these new forms
are completed, or submitted by the grant
recipient. These forms are filled out by the
recipient's prime contractors and
subcontractors.
No mechanism for recipients to develop and
maintain their own list of DBEs
Recipients are now required to create and maintain a
bidders list. There is a $250K exemption from this
requirement.
EPA Tribal, U.S. Territories and Insular Areas Administrative and Financial Guidance for Assistance Agreements
Last September 2013 86 of 519
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MBE/WBE Reporting
Old MBE/WBE Program
New DBE Program
All recipients, including Tribes and trust
territories, must report MBE/WBE
accomplishments on EPA Form 5700-52A.
No Change
The following recipients report on an annual
basis:
• Recipients of Continuing
Environmental Program Grants
under 40 CFR Part 35, Subpart A;
• Recipients under 40 CFR Part 35,
Subpart B;
• General Assistance Program (GAP)
grants for tribal governments and
intertribal consortia; and
• Institutions of higher education,
hospitals and other non-profit
organizations receiving financial
assistance agreements under 40 CFR
Part 30.
No Change
The following recipients report on a
quarterly basis:
• Recipients of financial assistance
agreements that capitalize revolving
loan funds; and
• All other recipients not specified as
"annual reporters".
Recipients, who reported quarterly under the old
program, now report on a semi-annual basis.
Self-certified MBEs and WBEs can be
counted toward a recipient's
accomplishments.
MBEs and WBEs must be certified in order to be
counted toward a recipient's accomplishments.
EPA Tribal, U.S. Territories and Insular Areas Administrative and Financial Guidance for Assistance Agreements
Last September 2013 S7 of 519
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MBE/WBE Certification
Old MBE/WBE Program
New DBE Program
MBEs and WBEs self-certify their status.
MBEs and WBEs must be certified by EPA, SBA,
DOT, or by state, local, Tribal, or private entities
whose certification criteria match EPA's.
*States are not required to develop or implement
a new certification program.
Self-certified MBEs and WBEs can be counted
toward a recipient's MBE/WBE
accomplishments when reporting on EPA
Form 5700-52A
MBEs and WBEs must be certified in order to be
counted toward a recipient's MBE/WBE
accomplishments.
Who do I contact for more information?
The EPA OSBP Headquarters Direct Team:
Lamont Norwood, Team Leader:
Denean Jones, Information Management Analyst
Thelma Harvey, SEE Enrollee
David Allen, Program Analyst
202-566-2933 norwood.lamont@epa.gov
202-566-1578 iones.denean@epa.gov
202-566-0334 harvey.thelma@epa.gov
202-566-0913 allen.david@epa.gov
Regional MBE/WBE Coordinators:
Region 1 - Larry Wells 617-918-1836
Region 2 - Michele Junker* 212-637-3418
Peggy DeLuca** 212-637-3369
Region 3 - Cynthia Burrows (interim) 215-814-5326
Region 4 - Charles Hayes 404-562-8377
Region 5 - Adrianne Callahan 312-353-5556
Region 6 - Debora Bradford 214-665-7406
Region 7 - Chester Stovall 913-551-7549
Region 8 - Marshell Pullman 303-312-6499
Region 9-Joe Ochab 415-972-3761
Region 10 - Greg Luchey 206-553-2967
EPA Headquarters - Veronica Parker 202-564-5347
National Coordinator-Teree Henderson 202-566-2222
* Grants
** Direct Procurement
wells.larry@epa.gov
junker.michele@epa.gov
deluca.peggy@epa.gob
burrows.cynthia@epa.gov
hayes.charles@epa.gov
callahan.adrianne@epa.gov
bradford.debora@epa.gov
stovall.chester@epa.gov
pullman.marshell@epa.gov
ochab.joe@epa.gov
luchey.greg@epa.gov
parker.veronica@epa.gov
henderson.teree@epa.gov
-------
DBE Reporting Check List
Standard Form 5700-52A has been downloaded from
http://www.epa.gov/ogd/forms/adobe/5700 52a new sec.pdf and printed.
We have read the three-page instructions for SF 5700-52A.
The report has been completed using SF 5700-52A.
The appropriate federal fiscal year has been entered in Block 1A.
All of the recipient's contact information has been included in Blocks 3A-3C, including
Nation's name and address, reporting contact name, email address, phone, and FAX
numbers.
The correct Financial Assistance Agreement identification (ID) number has been entered in
Block 4A.
All sources have been checked before procurement data for the reporting period was
entered on the form (i.e., the grantee's buying offices and project managers, as well as any
and all sub-recipients, loan recipients, and prime contractors under the EPA-funded
project).
The dollar amounts reported on the form reflect procurements made during the reporting
period under both EPA's and the grantee's matching grant dollar share. (The sole
exception is the State Revolving Fund Program, where the DBE program requirements
apply up to the amount of EPA's share/capitalization grant.)
The data entered on the report meets EPA's definition of procurement (i.e., the acquisition
through contract, order, purchase, lease, or barter of supplies, equipment, construction, or
services needed to accomplish federal assistance programs).
Before checking Block 5B, the recipient has determined that no procurement was made to
non-DBEs during the reporting period.
Data has been entered in Block 5C only if Block 5B has not been checked.
Unless Block 5B has been checked, a yes or no response has been entered in the first line
of Block 5C based on EPA's definitions of "subaward" and "contracts".
Unless Block 5B has been checked, a dollar amount has been entered for "Total
Procurement Amount" in Block 5C (even if there was no DBE procurement).
The recipient understands that any dollar amount entered for "Total Procurement
Amount" in Block 5C includes any procurement dollars awarded to non DBEs as well as
DBEs. (The figure entered as "Total Procurement Amount " is likely to be higher than the
"Total" for DBEs entered at the bottom of Block 5C.)
If procurements during the reporting period were made to non-DBEs only, the recipient
has explained in Block 6 what steps it is taking to identify and utilize DBEs in the future.
Part 2 of the form (on the reverse side of Part 1) has been completed only if procurement
dollars were awarded to DBEs during the reporting period.
-------
The DBE dollar amounts entered in Block 5C of Part 1 align with the amounts entered in
Part 2 of the form.
DBE expenditures have not been double-entered on Part 1 of the form. The dollar amount
counted towards DBEs for an individual procurement must not exceed the amount entered
for the "Value of Procurement" listed in Column 3 of Part 2.
All appropriate Blocks in both Parts 1 and 2 of the reporting form have been completed.
The completed report has been signed and dated by an official or other authorized
employee of the EPA recipient (not by a contractor, subrecipient, or loan recipient).
The completed, signed, original DBE report has been mailed to the EPA Grants
Management Office where the award originated. It is addressed to "Attention: DBE
Coordinator".
If there are any questions, contact your Regional DBE Coordinator who is listed under Regional
Contacts at http://www.epa.gov/osbp/dbe cord.htm.
-------
MBE/WBE Reporting
'Measuring the Effectiveness of the Program
Program Comparison
Old MBE/WBE Program
New DBE Program
Recipients must report MBE/WBE
accomplishments on EPA Form 5700-52A.
No Change
The following recipients report on an annual
basis:
• Recipients of Continuing
Environmental Program Grants under
40CFRPart35, SubpartA;
• Recipients under 40 CFR Part 35,
Subpart B;
• General Assistance Program (GAP)
grants for tribal governments and
intertribal consortia; and
• Institutions of higher education,
hospitals and other non-profit
organizations receiving financial
assistance agreements under 40 CFR
Part 30.
No Change
The following recipients report on a quarterly
basis:
• Recipients of financial assistance
agreements that capitalize revolving
loan funds; and
• All other recipients not specified as
"annual reporters".
Recipients who reported quarterly under the old
program, now report on a semi-annual basis.
Self-certified MBEs and WBEs can be counted
toward a recipient's accomplishments.
MBEs and WBEs must be certified in order to be
counted toward a recipient's accomplishments.
What is the Purpose of MBE/WBE Reporting?
The purpose of MBE/WBE reporting is to monitor the grant recipient's
• Accomplishments in Utilizing MBEs and WBEs;
• Adherence to the Good Faith Efforts (i.e., outreach to MBEs, WBEs, and other DBEs); and
• Progress in Achieving MBE and WBE Goals.
-------
What are the Grant Recipient's Responsibilities for MBE/WBE Reporting?
• Complete & submit EPA Form 5700-52A for each reporting period at a frequency specified in
the grant agreement, to the appropriate EPA office and personnel as identified in their
financial assistance agreement.
• Submit "negative reports" (e.g., reports where there were no MBEs or WBEs utilized, or no
procurement expenditures of any kind were made during the reporting period).
• Collect and retain/document data on MBE, WBE, and Total Procurement expenditures made
for the grant project up to the "Total Assistance Agreement Amount" (i.e., the grantee's
total budget).
• Report procurement expenditures from aJi sources [i.e., the EPA grant recipient, sub-
recipients, loan recipients (and the prime contractors of all three entities)].
What are the reporting frequencies and due dates?
Annual Reporters:
• Recipients of Continuing Environmental Program Grants under 40 CFR Part 35, Subpart
A;
• Recipients under 40 CFR Part 35, Subpart B;
• General Assistance Program (GAP) grants for tribal governments and intertribal
consortia; and
• Institutions of higher education, hospitals and other non-profit organizations receiving
financial assistance agreements under 40 CFR Part 30.
• Annual Reporters must submit their completed EPA Form 5700-52A to EPA within 30
days of the end of the annual reporting period (October 30th).
Semi-Annual Reporters:
• Recipients of financial assistance agreements that capitalize revolving loan funds; and
• All other recipients not specified as "annual reporters".
• Semiannual Reporters must submit their completed EPA Form 5700-52A to EPA within
30 days of the end of the semiannual reporting period (April 30th and October 30th).
What must be considered in counting MBE/WBE participation?
• MBEs & WBEs must be officially certified as such, in order to claim/report them as
MBE/WBE on EPA Form 5700-52A. (See Certification Fact Sheet)
• MBEs and WBEs may not act as Brokers or Passive conduits of funds.
• A MBE or WBE Trucker must serve a "commercially-useful" function.
• The amount counted towards a MBE or WBE Prime Contractor may not exceed 100% of
contract value.
• To be claimed 100% MBE or WBE, a Prime Contractor who is MBE or WBE may not sub-
award more than 49% of its contract value to non-MBE/WBE.
EPA Tribal, U.S. Territories and Insular Areas Administrative and Financial Guidance for Assistance Agreements
Last September 2013 92 of 519
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MBE/WBE Reporting Under Revolving Loan Programs
• EPA financial assistance recipients that capitalize Revolving Loan Programs need only report
"Total Procurement Dollars" in the amount of loans equal or up to the capitalization grant
amount.
• Entities receiving identified loans must submit their MBE/WBE participation reports/data to
the EPA grant recipient (rather than to EPA).
• EPA financial assistance recipients that capitalize Revolving Loan Programs must ensure that
they receive procurement reports from revolving loan recipients in time to meet EPA's
MBE/WBE Reporting deadlines.
EPA Tribal, U.S. Territories and Insular Areas Administrative and Financial Guidance for Assistance Agreements
Last September 2013 93 of 519
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DBE Resource List
State
Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
Florida
Georgia
Hawaii
Idaho
Illinois
DBE Certification
Database Link (DOT)
http://cpmsweb2.dot.state.al.us/alucp/defa
ult.aspx#home
http://dot.alaska.gov/cvlrts/dbelinks-
pop.shtml
http://www.azdot.gov/azdbe/DBE Search. a
spx
http://www.arkansashighways.com/ProgCo
n/letting/dbedirectory.pdf
http://www.caltrans.ca.gov/hq/bep/find ce
rtified.htm
http://www.coloradodot.info/business/equ
al-opportunity/dbe
http://www.ct.gov/dot/cwp/view. asp?a=22
88&q=307380
http://deldot.gov/public. ejs?command=Pub
licDBEVendorSearch
https://www3.dot.state.fl.us/EqualOpportu
nityOffice/biznet/mainmenu.asp
http://www.dot.ga.gov/doingbusiness/dbeP
rograms/Pages/default.aspx
http://hawaii.gOV/dot/administration/ocr/d
be/dbe-directory-name.pdf
http://www.itd.idaho.gov/civil/
dbeforms.htm#directory
http://www.dot.state.il.us/ucp/ucp.html
MBE/WBE Certification Additional DBE/MBE/WBE
Info Link (where available) Database Sites or
Information
No Specific State Link at this time
No Specific State Link at this time
No Specific State Link at this time
No Specific State Link at this time
No Specific State Link at this time
No Specific State Link at this time
MBE certification/non-profit
certification
No Specific State Link at this time
No Specific State Link at this time
No Specific State Link at this time
No Specific State Link at this time
No Specific State Link at this time
Last Updated September 2013
EPA Tribal, U.S. Territories and Insular Areas Administrative and Financial Guidance for Assistance Agreements
page 94 of 519
-------
State
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
DBE Certification
Database Link (DOT)
http://www.in.gov/indot/2392.htm
http://www.dot.state.ia.us/contracts/
contracts eeoaa.htm
http://www.ksdot.org/divadmin/civilrights/
http://transportation.ky.gov/construction-
procurement/pages/disadvantaged-
business-enterprises.aspx
http://www8.dotd.louisiana.gov/UCP/Home
.aspx
http://www.maine.gov/mdot/civilrights/
http://www.mdot.maryland.gov/Office%20
of%20Minority%20Business%20Enterprise/
Overview Page/Overview
http://www.somwba.state.ma.us/BusinessD
irectory/
BusinessDirectory.aspx
http://www.michigan.gOV/mdot/0. 1607. 7-
151-9625 21539 23108— ,00. html
http://www.dot.state.mn.us/civilrights/dbe.
html
http://sp.mdot.ms.gov/Civil%20Rights/Page
s/DBE.aspx
http://www.modot.org/business/contractor
resources/External Civil Rights/QBE progr
am. htm
MBE/WBE Certification Additional DBE/MBE/WBE
Info Link (where available) Database Sites or
Information
No Specific State Link at this time
No Specific State Link at this time
No Specific State Link at this time
No Specific State Link at this time
No Specific State Link at this time
http://www.maine.gov/mdot/disadva
ntaged-business-
enterprises/pdf/directory.pdf
No Specific State Link at this time
No Specific State Link at this time
http://www.ci.kalamazoo.mi.us/repor
t§Z
purchasingpdf/mbewbe/mbewbe.htm
|
No Specific State Link at this time
No Specific State Link at this time
No Specific State Link at this time
Last Updated September 2013
EPA Tribal, U.S. Territories and Insular Areas Administrative and Financial Guidance for Assistance Agreements
page 95 of 519
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State
Montana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Oregon
Pennsylvania
Rhode Island
DBE Certification
Database Link (DOT)
http://www.mdt.mt.gov/business/contracti
ng/civil/dbe.shtml
http://www.transportation.nebraska.gov/le
tting/dbeinfo.htm
http://www.nevadadot.eom/NevadaDBE/D
BE.aspx
http://www.nh.gov/dot/org/administration
/ofc/dbe.htm
http://www.state.ni.us/transportation/busi
ness/civilrights/dbe.shtm
https://nmdot. dbesystem.com/FrontEnd/Ve
ndorSearchPublic.asp?TN=nmdot&XID=184
2
https://www. dot.ny.gov/main/business-
center/audit/dbe-certification
https://connect.ncdot.gov/business/SmallB
usiness/Pages/default.aspx
http://www.dot.nd.gov/divisions/civilrights/
dbeprogram.htm
https://www. ohioucp.org/nonsupported br
owser.action
http://www.oregon.gov/ODOT/CS/CIVILRIG
HTS/Pages/sbe/dbe/dbe program. aspx
http://www.dot.state.pa.us/lnternet/Burea
us/pdBEO.nsf/BEOHomepage?OpenFrames
et
http://www.mbe.ri.gov/
MBE/WBE Certification Additional DBE/MBE/WBE
Info Link (where available) Database Sites or
Information
No Specific State Link at this time
No Specific State Link at this time
No Specific State Link at this time
No Specific State Link at this time
No Specific State Link at this time
No Specific State Link at this time
No Specific State Link at this time
No Specific State Link at this time
No Specific State Link at this time
No Specific State Link at this time
No Specific State Link at this time
No Specific State Link at this time
No Specific State Link at this time
Last Updated September 2013
EPA Tribal, U.S. Territories and Insular Areas Administrative and Financial Guidance for Assistance Agreements
page 96 of 519
-------
State
^—^
South Carolina
South Dakota
Tennessee
Texas
Utah
Vermont
Virginia
Washington
West Virginia
Wisconsin
Wyoming
DBE Certification
Database Link (DOT)
http://www.scdot.org/doing/businessDevel
op SCUnified.aspx
http://www.sddot.com/business/contractor
s/dbe/Default.aspx
http://www.tdot.state.tn.us/civil-
rights/smallbusiness/
http://www.dot.state.tx.us/business/busine
ss outreach/dbe.htm
http://www.udot.utah. gov/main/f?p=100:p
g:0:::l:T,V:2250,
http://www.aot.state.vt.us/CivilRights/Dbe.
htm
http://www.dmbe.virginia.gov/
http://www.omwbe.wa.gov/
http://www.transportation.wv.gov/eeo/DB
E/Pages/default.aspx
http://www.dot.wisconsin.gov/business/en
grserv/dbe-main.htm
http://www.dot.state.wv.us/home/business
with wvdot/contractors/Disadvantaged B
usiness Enterprise.html
MBE/WBE Certification
Info Link (where available)
^^^^^^^^^^^^^m
No Specific State Link at this time
http://www.sddot.com/operations/co
mpliance/Docs/dbedir/DBEDir.html
No Specific State Link at this time
No Specific State Link at this time
No Specific State Link at this time
No Specific State Link at this time
No Specific State Link at this time
No Specific State Link at this time
No Specific State Link at this time
No Specific State Link at this time
No Specific State Link at this time
Additional DBE/MBE/WBE
Database Sites or
Information
-
Last Updated September 2013
EPA Tribal, U.S. Territories and Insular Areas Administrative and Financial Guidance for Assistance Agreements
page 97 of 519
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U.S. DBE Directories Links/Resource Assistance Additional Resource Links or
Territories/Districts I nf ormation
American Samoa
Government of Samoa Website
http://americansamoa.gov/
Washington D.C.
http://www.wmata.com/business/disadvan
taged business enterprise/
http://www.mwaa.com/4590.htm
Guam
http://www.guamchamber.com.gu/?pg=con
tact
Northern Marianas commercedept@pticom.com.
Department of Commerce Email
Puerto Rico
http://www.dtop.gov.pr/carretera/det cont
ent.asp?cn id=240
http://www.dtop.gov.pr/pdf/DBE Dir
ectory August 12-2011.pdf
U.S. Virgin Islands
DOT DBE Program
Links State by State
Sharon Challenger, Civil Rights Program
Manager,
V.I. DOT Phone: (340) 773-1290 ext.2292
directory available - may not be
electronic
http://www.osdbu.dot.gov/DBEProgram/St
ateDOTDBESites.cfm
Link to all DOT sites state by state
with
additional links to Universities and
Non-profits
MBE/WBE
Directory:
http://www.sba8a.com/adtop.htm
National directory that is free to its
members.
Last Updated September 2013
EPA Tribal, U.S. Territories and Insular Areas Administrative and Financial Guidance for Assistance Agreements
page 98 of 519
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40 C.F.R, PART 33
Subpart A—General Provisions
Section
33.101 What are the objectives of this part?
33.102 When do the requirements of this part apply?
33.103 What do the terms in this part mean?
33.104 May a recipient apply for a waiver from the requirements of this part?
33.105 What are the compliance and enforcement provisions of this part?
33.106 What assurances must EPA financial assistance recipients obtain from their contractors?
33.107 What are the rules governing availability of records, cooperation, and intimidation and
retaliation?
Subpart B—Certification
33.201 What does this subpart require?
33.202 How does an entity qualify as an MBE or WBE under EPA's 8% statute?
33.203 How does an entity qualify as an MBE or WBE under EPA's 10% statute?
33.204 Where does an entity become certified under EPA's 8% and 10% statutes?
33.205 How does an entity become certified by EPA?
33.206 Is there a list of certified MBEs and WBEs?
33.207 Can an entity reapply to EPA for MBE or WBE certification?
33.208 How long does an MBE or WBE certification from EPA last?
33.209 Can EPA re-evaluate the MBE or WBE status of an entity after EPA certifies it to be an MBE or
WBE?
33.210 Does an entity certified as an MBE or WBE by EPA need to keep EPA informed of any changes
which may affect the entity's certification?
33.211 What is the process for appealing or challenging an EPA MBE or WBE certification
determination?
33.212 What conduct is prohibited by this subpart?
Subpart C—Good Faith Efforts
33.301 What does this subpart require?
33.302 Are there any additional contract administration requirements?
33.303 Are there special rules for loans under EPA financial assistance agreements?
33.304 Must a Native American (either as an individual, organization, Tribe or
Tribal Government) recipient or prime contractor follow the six good faith efforts?
** Note: The above section contains the language regarding the Indian Self-Determination Act,
and the language about tribes being able to utilize their own Tribal preference programs.
Subpart D—Fair Share Objectives
33.401 What does this subpart require?
33.402 Are there special rules for loans under EPA financial assistance agreements?
33.403 What is a fair share objective?
-------
33.404 When must a recipient negotiate fair share objectives with EPA?
33.405 How does a recipient determine its fair share objectives?
33.406 May a recipient designate a lead agency for fair share objective negotiation purposes?
33.407 How long do MBE and WBE fair share objectives remain in effect?
33.408 May a recipient use race and/or gender conscious measures as part of this program?
33.409 May recipient use quotas as part of this program?
33.410 Can a recipient be penalized for failing to meet its fair share objectives?
33.411 Who may be exempted from this subpart?
33.412 Must an Insular Area or Indian Tribal Government recipient negotiate fair share objectives?
Subpart E—Recordkeeping and Reporting
33.501 What are the recordkeeping requirements of this part?
33.502 What are the reporting requirements of this part?
33.503 How does a recipient calculate MBE and WBE participation for reporting purposes?
Appendix A to Part 33—Terms and Conditions
EPA Tribal, U.S. Territories and Insular Areas Administrative and Financial Guidance for Assistance Agreements
Last September 2013 100 of 519
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Also known as EPA Form 5700-52A, MBE/WBE Utilization Under Federal Grants and
Cooperative Agreements
-------
;;
""' ,, *>
U.S. ENVIRONMENTAL PROTECTION AGENCY
MBE/WBE UTILIZATION UNDER FEDERAL GRANTS
AND COOPERATIVE AGREEMENTS
PART 1. (Reports are required even if no procurements are made during the reporting period.)
1A. FEDERAL FISCAL YEAR 1B. REPORTING PERIOD (Check ALL appropriate boxes)
(Oct 1-Sep30> ni*(Oet-D«c Q T" (Jan-Mar) Q3'"(Apr-Jun) £] f (Jul-Sep)
M Semi-Annual (Oct-Mar) [~] Semi-Annual (Apr-Sep)
20 FTAnnuai
1 — I Check if this is the last report fee the project (Project completed).
1C, REVISION OF A PRIOR REPORT' Y BRIEFLY DESCRIBE THE
or N Year:
Quarter:
2A. EPA FINANCIAL ASSISTANCE OFFICE ADDRESS ( ATTN: DBE
Coordinator)
2B. EPA D8E COORDINATOR 2C. PHONE:
Name:
E-mail: Fax:
4A. FINANCIAL ASSISTANCE AGREEMENT ID NUMBER
(SRF Slate Recipients, refer to instructions for Completion of blocks
4A.5Aand5C.)
5A. TOTAL ASSISTANCE AGREEMENT AMOUNT 5B. IfNOc
(SRF State Recipients, refer to Instructions for Completion of blocks recipients, s
4A,5Aend5C.) No 7 (pfo
supplies, ec
EPA Share: S prr-grams '
Recipient Share: S
5C. Total Procurements Th
(Only include amount not reporte
Total Procurement Amount S (Inc ude total d
Including MBE/WBE expenditures.)
REVISIONS YOU ARE MAKING:
3A. RECIPIENT NAME AND ADDRESS
38. RECIPIENT REPORTING CONTACT:
Name:
E-mail:
3C. PHONE:
Fax:
4B. FEDERAL FINANCIAL ASSISTANCE PROGRAM TITLE or CFDA
NUMBER:
rocurement and NO accomplishments were made this reporting period (by the
ub-recipients, loan recipients, and prime contractors), CHECK and SKIP to Block
curements are all expenditures through contract, order, purchase, lease or barter of
uipment. construction, or services needed to compete Federal assistance
teeomplishments. in this context, are procurements made with MBEs and/or WBEs.
D
is Reporting Period
d in any prior reporting period)
oilar values awarded by recipient, sub- recipients and SRF loan recipients,
SD.
Were sub-awards issued under this assistance agreement? Yesd] Nol I Were contracts issued under this assistance agreement ? Yes I I Nol I
SE. MBE/WBE Accomplishments This Reporting Period
Actual MBE/WBE Procurement Accomplished:
(Include total dollar values awarded by recipien , sub-recipients, SRF loan recipients and Prime Contractors.)
Construction Equipment Services Supplies
JMBE:
5WBE:
Total
0.00
0.00
6. COMMENTS: (If no MBE/WBE procurements were accompl shed during Ihe reportina period, please explain what steps you are taking to achieve the
MBEWBE Program requirements specified in the terms and conditions of the Assistance Agreement.)
7. NAME OF RECIPIENT'S AUTHORIZED TITLE
REPRESENTATIVE
8. SIGNATURE OF RECIPIENTS AUTHORIZED DATE
REPRESENTATIVE
EPA FORM 6700-52A available electronically at http:AWww.epa .gotf/osbD/Pdf.s/5700 52a.pdf
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PART II.
MBE/WBE PROCUREMENTS MADE DURING REPORTING PERIOD
EPA Financial Assistance Agreement Number:
1 Procurement Made 8y
RecfWil Sub- " Print*
Re£Sf*enl |
andft* SRF
Loan
Rec$*enl
2 Business
Enterprise
Minority Women
3 S Value cf
Pfocuiemeni
4 Date of
Procurement
5 Type of
Picxiuct or
Services -
(Freer Coda)
6 Name/Address/Phone Humbe r of M BbWBE
CortractOE OE Vendoi
Type of Deduct or service codes
1 - Consiiuctien
Note: Refer ?oTenns ^cJccnfiionsofyo
Ihe recsptraSs recwve trie award, cofttautts
E:PAFORM5/0)3-&2A*
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Instructions:
A. General Instructions:
MBE/WBE utilization is based on 40 CFR Part 33. EPA
Form 5700-52A must be completed by recipients of
Federal grants, cooperative agreements, or other Federal
financial assistance which involve procurement of
supplies, equipment, construction or services to
accomplish Federal assistance programs.
Recipients are required to report 30 days after the end of
each federal fiscal quarter, semiannually, or annually, per
the terms and conditions of the financial assistance
agreement.
Agreements
awarded
prior to May
27, 20(tX
Agreements
awarded on
or Eifter May
27, 21 KM '
Quarterly
Reporting
Due Dale
January 30,
April 3(.t,
July 30.
October 30
N/A
Semiannual
Reporting
Due Date
N'A
April 30,
October 30
Annual
Reporting
Due Date
October
30
October
30
MBE/WBE program requirements, including reporting, are
material terms and conditions of the financial assistance
agreement.
B. Definitions:
Procurement is the acquisition through contract, order,
purchase, lease or barter of supplies, equipment,
construction or services needed to accomplish Federal
assistance programs,
A contract is a written agreement between an EPA
recipient and another party (also considered "prime
contracts") and any lower tier agreement (also considered
"subcontracts") for equipment, services, supplies, or
construction necessary to complete the project. This
definition excludes written agreements with another public
agency This definition includes personal and
professional services, agreements with consultants, and
purchase orders,
A minority business enterprise (MBE) is a business
concern that is (1) at least 51 percent owned by one or
more minority individuals, or, in the case of a publicly
owned business, at least 51 percent of the stock is owned
by one or more minority individuals; and (2) whose daily
business operations are managed and directed by one or
more of the minority owners In order to qualify and
participate as an MBE prime or subcontractor for EPA
recipients under EPA's DBE Program, an entity must be
properly certified as required by 40 CFR Part 33, Subpart
B.
U.S. citizenship is required. Recipients shall presume
that minority individuals include Black Americans,
Hispanic Americans, Native Americans, Asian Pacific
Americans, or other groups whose members are found to
be disadvantaged by the Small Business Act or by the
Secretary of Commerce under section 5 of Executive
order 11625. The reporting contact at EPA can provide
additional information.
A woman business enterprise (WBE) is a business
concern that is, (1) at least 51 percent owned by one or
more women, or, in the case of a publicly owned
business, at least 51 percent of the stock is owned by one
or more women and (2) whose daily business operations
are managed and directed by one or more of the women
owners. In order to qualify and participate as a WBE
prime or subcontractor for EPA recipients under EPA's
DBE Program, an entity must be properly certified as
required by 40 CFR Part 33, Subpart B.
Business firms which are 51 percent owned by minorities
or women, but are in fact managed and operated by non-
minority individuals do not qualify for meeting MBEM/BE
procurement goals. U.S. Citizenship is required
Good Faith Efforts
A recipient is required to make the following good faith
efforts whenever procuring construction, equipment,
services, and supplies under an EPA financial assistance
agreement. These good faith efforts for utilizing MBEs
and WBEs must be documented. Such documentation is
subject to EPA review upon request:
1. Include of MBEs/WBEs on solicitation lists.
2. Assure that M BEs/WBEs are solicited once they
are identified.
3. Divide total requirements into smaller tasks to
permit maximum MBE/WBE participation, where
feasible,
4. Establish delivery schedules which will encourage
MBEA/VBE participation, where feasible
5. Encourage use of the services of the U.S.
Department of Commerce's Minority Business
Development Agency (MBDA) and the U.S. Small
Business Administration to identify MBEs/WBEs,
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6. Require that each party to a subgrant,
subagreement, or contract award take the good
faith efforts outlined here.
C. Instructions for Part I:
1a. Specify Federal fiscal year this report covers. The
Federal fiscal year runs from October 1s' through
September 3Qth (e.g. November 29, 2010 falls
within Federal fiscal year 2011)
1b. Check applicable reporting box, quarterly,
semiannually, or annually. Also indicate if this is
the last report for the project.
1c. Indicate if this is a revision to a previous year,
half-year, or quarter, and provide a brief
description of the revision you are making.
2a-c. Please refer to your financial assistance
agreement for the mailing address of the EPA
financial assistance office for your agreement.
The "EPA DBE Reporting Contact" is the DBE
Coordinator for the EPA Region from which your
financial assistance agreement was originated.
For a list of DBE Coordinators please refer to the
EPA OSBP website at www.epa.gov/osbp. Click
on "Regional Contacts™ for the name of your
coordinator.
3a-c. Identify the agency, state authority, university or
other organization which is the recipient of the
Federal financial assistance and the person to
contact concerning this report.
4a. Provide the Assistance Agreement number
assigned by EPA. A separate report must be
submitted for each Assistance Agreement.
*For SRF recipients: In box 4a list numbers for
ALL OPEN Assistance Agreements being
reported on this form. Please note that although
the New DBE Rule (which took effect May 27,
2008) revised the reporting frequency
requirements from quarterly to semiannually, that
change only applies to agreements awarded
AFTER the New DBE Rule took effect
Therefore, SRF recipients may either continue to
report activity for all Agreements on one form on
a quarterly basis until the last award that was
made prior to the New DBE Rule has been closed
out, OR, the recipient may split the submission of
SRF reports into quarterly reports for Agreements
awarded prior the New DBE Rule, and
semiarinually for the awards made after the New
DBE Rule.
4b. Refer back to Assistance Agreement document
for this information.
5a. Provide the total amount of the Assistance
Agreement which includes Federal funds plus
recipient matching funds and funds from other
*For SRF recipients only: SRF recipients will riot
enter an amount in 5a. Please leave 5a blank.
5b. Self-explanatory.
5c. Provide the total dollar amount of ALL
procurements awarded this reporting period by
the recipient, sub-recipients, and SRF loan
recipients, including MBE/WBE expenditures.
For example: Actual dollars for procurement from
the procuring office; actual contracts let from the
contracts office; actual goods, services, supplies,
etc., from other sources including the central
purchasing/ procurement centers).
*NOTE: To prevent double counting on line 5C. if
any amount on 5E is for a subcontract and the
prime contract has already been included on Line
5C in a prior reporting period, then report the
amount going to MBE or WBE subcontractor on
line 5E, but exclude the amount from Line 5C. To
include the amount on 5C again would result in
double counting because the prime contract,
which includes the subcontract, would have
already been reported.
5d. State whether or not sub-awards and/or
subcontracts have been issued under the
assistance agreement by indicating "yes" or "no".
5e. Where requested, also provide the total dollar
amount of all MBE/WBE procurement awarded
during this reporting period by the recipient, sub-
recipients, SRF loan recipients, and prime
contractors in the categories of construction,
equipment, services and supplies. These
amounts include Federal funds plus recipient
matching funds and funds from other sources.
*For SRF recipients only: In 5o please enter the
total procurement amount for the quarter, or
semiannual period, under all of your SRF
Assistance Agreements The figure reported in
this section is not directly tied to an individual
Assistance Agreement identification number.
(SRF state recipients report state
procurements in this section)
6. If there were no MBE/WBE accomplishments this
reporting period, please briefly explain what
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7.
specific steps you are taking to achieve the
MBE/WBE requirements specified in the terms
and conditions of the Assistance Agreement.
Name and title of official administrator or
designated reporting official.
8. Signature, month, day, and year report submitted.
D. Instructions for Part II:
For each MBEWBE procurement made under this
assistance agreement during the reporting period, provide
the following information:
1. Check whether this procurement was made by
the recipient, sub-recipient/SRF loan recipient, or
the prime contractor.
2. Check either the MBE or WBE column. If a firm
is both an MBE and WBE, the recipient may
choose to count the entire procurement towards
EITHER its MBE or WBE accomplishments. The
recipient may also divide the total amount of the
procurement (using any ratio it so chooses) and
count those divided amounts toward its MBE and
WBE accomplishments. If the recipient chooses
to divide the procurement amount and count
portions toward its MBE and WBE
accomplishments, please state the appropriate
amounts under the MBE and WBE columns on
the form The combined MBE and WBE
amounts for that MBE/WBE contractor must
not exceed the "Value of the Procurement"
reported in column #3
3, Dollar value of procurement.
4 Date of procurement, shown as month, day, year
Date of procurement is defined as the date the
contract or procurement was awarded, not the
date the contractor received payment under the
awarded contract or procurement, unless
payment occurred on the date of award. (Where
direct purchasing is the procurement method,
the date of procurement is the date the
purchase was made)
5. Using codes at the bottom of the form, identify
type of product or service acquired through this
procurement (e.g.. enter 1 if construction, 2 if
supplies, etc).
6. Name, address, and telephone number of
MBE/WBE firm.
"This data is requested to comply with provisions
mandated by: statute or regulations (40 CFR Part 30, 31,
and 33); OMB Circulars; or added by EPA to ensure
sound and effective assistance management. Accurate,
complete data are required to obtain funding, while no
pledge of confidentiality is provided.
The public reporting and recording burden for this
collection of information is estimated to average I hour per
response annually. Burden means the total time, effort,
or financial resources expended by persons to generate,
maintain, retain, or disclosure or provide information to or
for a Federal agency. This includes the time needed to
review instructions: develop, acquire, install, and utilize
technology and systems for the purposes of collecting,
validating, and verifying information, processing and
maintaining information, and disclosing and providing
information; adjust the existing ways to comply with any
previously applicable instructions and requirements: train
personnel to be able to respond to a collection of
information; search data sources; complete and review
the collection of information: and transmit or otherwise
disclose the information. An agency may not conduct or
sponsor, and a person is not required to respond to, a
collection of information unless it displays a currently valid
OMB control number.
Send comments on the Agency's need for this
information, the accuracy of the provided burden
estimates, and any suggested methods for minimizing
respondent burden, including through the use of
automated collection techniques to the Director, OPPE
Regulatory Information Division, U.S. Environmental
Protection Agency (2136), 1200 Pennsylvania Avenue,
NW, Washington, D.C. 20460. Include the OMB Control
number in any correspondence. Do not send the
completed form to this address.
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***Special Notice***
Re: Suspended Use of EPA Forms 6100-2, 6100-3, and 6100-4
On January 31, 2011 the following EPA Forms officially expired
• EPA Form 6100-2, DBE Subcontractor Participation Form;
• EPA Form 6100-3, DBE Subcontractor Performance Form;
• EPA Form 6100-4, DBE Subcontractor Utilization Form.
Because these forms have expired, their required use is suspended until they are renewed by the Office of
Management and Budget (OMB), and issued a new expiration date.
As an EPA grant recipient, if you initiated procurements, requiring the these forms, prior to the January 31,
2011 expiration date, then the requirement to submit the forms is still valid for those procurements.
Procurements initiated after January 31, 2011, expiration date cannot require the use of these forms.
The process to improve and renew the 6100-2, 3, and 4 forms is underway. During this process there will be
notices posted in the Federal Register soliciting your comments and feedback on improving the forms and
their instructions. We encourage you to openly give us your suggestions on making the forms better. If you
have any questions, please contact your Regional Small Business Coordinator, or Teree Henderson, DBE
Program National Coordinator, at 202-566-2222.
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• * .'.'• ! ; '.«, • ::"
http://www.epa.gov/osbp/pdfs/dbe/subcontractor participation form%20-.pdf
Environmental
Protection Agency
OMB Control No: 2090-0030
Approved: 05/01/2008
Approval Expires: 01/31/2011
Disadvantaged Business Enterprise Program
DBE Subcontractor Participation Form
NAME OF SUBCONTRACTOR
ADDRESS
TELEPHONE NO.
PROJECT NAME
CONTRACT NO.
EMAIL ADDRESS
PRIME CONTRACTOR NAME
Please use the space below to report any concerns regarding the above EPA-funded project (e.g., reason for
termination by prime contractor, late payment, etc.).
CONTRACT
ITEM NO.
ITEM OF WORK OR DESCRIPTION OF SERVICES RECEIVED FROM
THE PRIME CONTRACTOR
AMOUNT
SUBCONTRACTOR
WAS PAID BY PRIME
CONTRACTOR
Subcontractor Signature Title/ Date
Subcontractor is defined as a company, firm, joint venture, or individual who enters into an agreement
with a contractor to provide services pursuant to an EPA award of financial assistance.
EPA TORM 6100-2 (DBI-: Subcontractor Participation Form)
EPA Tribal, U.S. Territories and Insular Areas Administrative and Financial Guidance for Assistance Agreements
Last Updated September 2013 page 108 of 519
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OMB Control No: 2090-0030
Approved: 05/01/2008
Approval Expires: 01/31/2011
Environmental
Protection Agency
Disadvantaged Business Enterprise Program
DBE Subcontractor Participation Form
The public reporting and recordkeeping burden for this collection of information is estimated to average fifteen
(15) minutes. Burden means the total time, effort, or financial resources expended by persons to generate,
maintain, retain, or disclose or provide information to or for a Federal agency. This includes the time needed to
review instructions; develop, acquire, install, and utilize technology and systems for the purposes of collecting,
validating, and verifying information, processing and maintaining information, and disclosing and providing
information; adjust the existing ways to comply with any previously applicable instructions and requirements;
train personnel to be able to respond to a collection of information; search data sources; complete and review the
collection of information; and transmit or otherwise disclose the information. An agency may not conduct or
sponsor, and a person is not required to respond to, a collection of information unless it displays a currently
valid OMB control number.
Send comments on the Agency's need for this information, the accuracy of the provided burden estimates, and any
suggested methods for minimizing respondent burden, including the use of automated collection techniques to
the Director, Collection Strategies Division, U.S. Environmental Protection Agency (2822), 1200 Pennsylvania
Ave., NW, Washington, D.C. 20460. Include the OMB control number in any correspondence. Do not send the
completed EPA DBE Subcontractor Participation Form to this address.
EPA FORM 6100-2 (DBE Subcontractor Participation Form)
EPA Tribal, U.S. Territories and Insular Areas Administrative and Financial Guidance for Assistance Agreements
Last Updated September 2.013 page 109 of 519
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si . .- • • *;:,'> i ' , '
http://www.epa.gov/osbp/pdfs/dbe/subcontractor performance form.pdf
-------
OMB Control No:.
Approved:
Approval Expires:
Environmental
Protection Agency
Disadvantaged Business Enterprise Program
DBE Subcontractor Participation Form
The public reporting and recordkeeping burden for this collection of inf ormationis estimated to average fifteen (15)
minutes. Burden means the total time, effort, or financial resources expended by persons to generate, maintain,
retain, or disclose or provide information to or for a Federal agency. This includes the time needed to review
instructions; develop, acquire, install, and utilize technolo gy and systems for the purposes of collecting, validating,
and verifying information, processing and maintaining information, and disclosing and providing information;
adjust the existing ways to comply with any previously applicable instructions and requirements; train personnel
to be able to respond to a collection of information; search data sources; complete and review the collection of
information; and transmit or otherwise disclose the information. An agency may not conduct or sponsor, and a
person is not required to respond to, a collection of information unless it displays a currently valid OMB control
number.
Send comments on the Agency's need for this information, the accuracy of the provided burden estimates, and any
suggested methods for minimizing respondent burden, Including the use of automated collection techniques to
the Director, CollectionStrategies Division, U.S. EnvironmentalProtection Agency (2822), 1200 Pennsylvania Ave.,
NW, Washington, D.C. 20460. Include the OMB control number in any correspondence. Do not send the
completed EPA DBE Subcontractor Participation Form to this address.
EPA FORM 6100-2 (DBE Subcontractor Participation Form)
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IIP* >". : '•: > "V. ''- .'
http://www.epa.gov/osbp/pdfs/dbe/subcontractor utilization form.pdf
E nvironment al
Protection Agency
OMB Control No:
Approved:
Approval Expires: _
Disadvantage*! Business Enterprise Program
DBE Subcontractor Participation Form
NAME OF SUBCONTRACTOR1
ADDRESS
TELEPHONE NO.
PROJECT NAME
CONTRACT NO.
E-MAIL ADDRESS
PRIME CONTRACTOR NAME
Please use the space below to report any concerns regarding the above EPA-funded project (e.g., reason for
termination by prime contractor, late payment etc.).
CONTRACT
ITEM NO.
ITEM OF WORK OR DESCRIPTION OF SERVICES RECEIVED FROM
THE PRIME CONTRACTOR
AMOUNT
SUBCONTRACTOR
WAS PAID BY PRIME
CONTRACTOR
Subcontractor Signature Title/ Date
Subcontractor is defined as a company, firm, joint venture, or individual who enters into an agreement
with 5 contractor to provide services pursuant to an EPA award of financial assistance.
EPA FORM 6100-2 (DBE Subcontractor Participation Form)
-------
OMB Control No: 2090-0030
Approved: 05/01/2008
Approval Expires: 01/31/2011
Environmental
Protection Agency
Disadvantaged Business Enterprise Program
DBE Subcontractor Utilization Form
The public reporting and recordkeeping burden for this collection of information is estimated to average fifteen
(15) minutes. Burden means the total time, effort, or financial resources expended by persons to generate,
maintain, retain, or disclose or provide information to or for a Federal agency. This includes the time needed to
review instructions; develop, acquire, install, and utilize technology and systems for the purposes of collecting,
validating, and verifying information, processing and maintaining information, and disclosing and providing
information; adjust the existing ways to comply with any previously applicable instructions and requirements;
train personnel to be able to respond to a collection of information; search data sources; complete and review the
collection of information; and transmit or otherwise disclose the information. An agency may not conduct or
sponsor, and a person is not required to respond to, a collection of information unless it displays a currently
valid OMB control number.
Send comments on the Agency's need for this information, the accuracy of the provided burden estimates, and
any suggested methods for minimizing respondent burden, including the use of automated collection techniques
to the Director, Collection Strategies Division, U.S. Environmental Protection Agency (2822), 1200 Pennsylvania
Ave., NW, Washington, D.C. 20460. Include the OMB control number in any correspondence. Do not send the
completed EPA DBE Subcontractor Utilization Form to this address.
EPA FORM 6100-4 (DBE Subcontractor Utilization Form)
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ENVIRONMENTAL PROTECTION AGENCY REGULATIONS AND DESCRIPTION
(If you should need a copy of the following regulations, you may access a copy through the World Wide
Web at http://www.epa.gov/ogd/grants/regulations.htm or call (202) 564-5315.)
• 40 CFR Parts 7 and 12 - NONDISCRIMINATION IN PROGRAMS RECEIVING FEDERAL ASSISTANCE FROM THE
ENVIRONMENTAL PROTECTION AGENCY
This rule implements statutes which prohibit discrimination on the grounds of race, color, national origin, sex,
and handicap. No person shall be excluded from participation in, be denied the benefits of, or be subjected to
discrimination under any program or activity receiving EPA assistance on the basis of race, color, national
origin, or on the basis of sex in any program or activity receiving EPA assistance under the Federal Water
Pollution Control Act, as amended, including the Environmental Financing Act of 1972.
• 40 CFR Part 29 - INTERGOVERNMENTAL REVIEW OF THE ENVIRONMENTAL PROTECTION AGENCY
PROGRAMS AND ACTIVITIES
(a) The regulations in this part implement Executive Order 12372, "Intergovernmental Review of Federal
Programs," issued July 14, 1982, and amended, on April 8, 1983. These regulations also implement applicable
provisions of section 401 of the Intergovernmental Cooperation Act of 1968, as amended and section 204 of the
Demonstration Cities and Metropolitan Development Act of 1966, as amended.
(b) These regulations are intended to foster an intergovernmental partnership and a strengthened federalism by
relying on State processes and on State, area-wide, regional, and local coordination for review of proposed
Federal financial assistance and direct Federal development.
(c) These regulations are intended to aid the internal management of the Environmental Protection Agency
(EPA) and are not intended to create any right or benefit enforceable at law by a party against EPA or its
officers.
You must contact your State's Single Point of Contact to find out if the program was selected for coverage by
the State process and, if the program was selected, to receive information about your State's review process
requirements and procedures. If you do not know who your Single point of Contact is, please call (202) 564-
5305.
• 40 CFR Part 30 - GENERAL REGULATION FOR ASSISTANCE PROGRAMS FOR ALL APPLICANTS CONSIDERED:
INSTITUTIONS OF HIGHER LEARNING, HOSPITALS, AND OTHER NONPROFIT ORGANIZATIONS.
This subpart establishes uniform administrative requirements for Federal grants and agreements awarded to
institutions of higher education, hospitals, and other non-profit organizations. The Environmental Protection
Agency (EPA) may not impose additional or inconsistent requirements, except as provided in Sections 30.4,
and 30.14 or unless specifically required by Federal statute or Executive Order. Non-profit organizations that
implement Federal programs for the States are also subject to State requirements.
• 40 CFR Part 31 - UNIFORM ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND COOPERATIVE
AGREEMENTS TO STATE AND LOCAL GOVERNMENTS
This part establishes uniform administrative rules for Federal grants and cooperative agreements and
subawards to State, local and Indian tribal governments.
EPA Tribal, U.S. Territories and Insular Areas Administrative and Financial Guidance for Assistance Agreements
Last Updated September 2013 page 114 of 519
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• 2 CFR Part 180 and Part 1532 - GOVERNMENT WIDE DEBARMENT AND SUSPENSION (NONPROCUREMENT);
CLEAN AIR ACT AND CLEAN WATER ACT INELIGIBILITY OF FACILITIES IN PERFORMANCE OF FEDERAL
CONTRACTS, GRANTS AND LOANS
• 40 CFR Part 34 - NEW RESTRICTIONS ON LOBBYING
This rule is in response to section 319 of Public Law 101-121. Section 319 prohibits recipients of Federal
contracts, grants, and loans from using appropriated funds for lobbying the Executive or Legislative Branches
of the Federal Government in connection with a specific contract, grant, or loan.
• 40 CFR Part 40 - RESEARCH AND DEMONSTRATION GRANTS
This part establishes mandatory policies and procedures for all EPA research and demonstration grants. These
provisions establish and codify policies and procedures governing the award of research and demonstration
grants by the Environmental Protection Agency.
• 40 CFR Part 45-TRAINING ASSISTANCE
This part establishes the policies and procedures for the award of training assistance by the Environmental
Protection Agency (EPA). The provisions of this part supplement EPA's "General Regulation for Assistance
Programs,".
• 40 CFR Part 47 - NATIONAL ENVIRONMENTAL EDUCATION ACT GRANTS AND COOPERATIVE AGREEMENTS.
This regulation codifies policy and procedures for the award of grants or cooperative agreements under section
6 of the National Environmental Education Act (NEEA). Specifically, this regulation defines eligible
applicants, eligible activities, and EPA priorities for selecting recipients, funding limits, and matching
requirements. Projects funded under this regulation are also subject to the Code of Federal Regulations (40
CFR) part 31 for State and local recipients, and part 30 for other than State and local recipients. Those
regulations contain Federal audit and other general administrative requirements. This regulation does not apply
to the programs implemented under sections 5 and 7 of the NEEA.
Work Plan Guidance and Description
(Attention Applicants: If you are responding to a specific request for an application, please follow the guidance as
instructed provided at the website or program office) When completing your application kit, be sure that the Work Plan
is addressed thoroughly. The Work Plan is a detailed description of how the sponsored project is going to be completed.
There are several key areas that must be addressed:
1. Environmental Results
2. Description of the Project
A. Objective
B. Results or benefits expected
C. Approach
D. General Project Information
3. Quality Assurance
4. Itemized Budget Detail
(See narrative descriptions below for more detail)
EPA Tribal, U.S. Territories and Insular Areas Administrative Financial Guidance for Assistance Agreements
Last September 2013 115 of 519
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1. ENVIRONMENTAL RESULTS.
This section is the introductory portion of the Work Plan. Give a summation of how the proposed project will benefit the
environment. Provide a description of how your specific project will create a benefit for the environment and create a
positive effect. Try to shape this around EPA's mission statement: "To Protect Human Health and the Environment".
12. DESCRIPTION OF PROJECT.
A. Objective:
(1) Describe the primary and secondary project objectives
(2) Identify relevant physical, economic, social, financial, institutional or other problems.
(3) Include supporting documentation from concerned interests other than the applicant.
(4) Include and footnote relevant data based on planning studies.
B. Results or benefits expected:
- Begin by identifying results and benefits that will accrue to the project. Include the benefits that will be accrued to:
1) the environment,
2) the recipient,
3) the population served, and
4) the general public.
C. Approach:
(1) Provide a Work Plan that details how the project work will be accomplished and detailing the proposed project. Cite
factors that could potentially accelerate or decelerate the project work. Indicate why this approach has been chosen
rather than the alternative approaches. Describe any unusual project features such as design or technological
innovations, cost or time reductions, or extraordinary social and community involvement.
(2) Describe all available facilities for carrying out the project.
(3) List all non-Federal funds sources and facilities to be used to perform the proposed project.
(4) Provide a chronological schedule of accomplishments, progress, and milestones that are anticipated over the projects
duration.
(5) Indicate who will carry out each of the work plans elements. Be sure to include supporting agencies, consultants, and
contractors.
(6) Describe sampling and data collection procedures, analytical methods as well as other identified methods for
evaluating the project results.
D. General Project Description:
(1) Identify the kinds of data to be collected and maintained, and discuss the evaluation criteria for the project's results.
Indicate whether research or demonstration will involve human subjects or research animals.
(2) Discuss this projects effect, or its relationship to work planned, anticipated, or in process, by the grantee, or
Government agencies. Discuss the Federal, state and local programs with which the work will be coordinated, and
describe the extent and nature of the coordination.
3. PROJECT TITLE
In block 11 of the SF424 provide a brief description of the proposed program/project. The
Project Description field must include a concise, clear description of the purpose of the project. More specifically, the
Project Description may not exceed three (3) lines of narrative and must address the scope of the project and/or the
primary activity to be supported by the grant. The Project Description should contain media-specific or environmental
KEY TERMS that may be used as search terms by the public (e.g., air quality, toxins, solid waste, mercury, etc.).
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4. QUALITY ASSURANCE.
If your proposed project involves environmentally related measurements or data generation, you must develop and
implement quality assurance practices. These practices must sufficiently produce quality data to adequately meet project
objectives, and to minimize data loss due to uncontrolled conditions or malfunctions. State, local, or Indian tribal
government applicants should refer to regulation 40 CFR 31.45. All other applicants should refer to EPA regulation 40
CFR 30.54. (Refer to http://www.epa.gov/ogd/grants/regulations.htm or
http://www.epa.gov/ogd/grants/assurance.htm)
5. BUDGET DETAIL.
In addition to completing the Standard Form (SF) 424A, "Budget Information - Non-Construction Programs", all
proposed grantees are required to submit a separate detailed itemized budget. (If indirect costs are being charged, you
must INCLUDE a copy of your indirect cost rate agreement, if established.)
Please address and follow the guidelines listed below (Also refer to sample within this package):
A. Personnel: List all project participants' titles. Indicate the time percentage that each individual will devote to this
project during the entire project period. The budget cost should be derived as follows: Each person's time percentage
His/her annual salary = Personnel costs
Indicate this calculation for each personnel member. The sum of each person's costs should be reflected as total
personnel costs. (Record the total on Standard Form 424A, Section B, Line A.)
B. Travel: Indicate the budgeted travels purpose and the destination of each trip and indicate the number of travelers.
(Record total on Standard Form 424A Section B, Line C.)
C. Equipment: Provide a list of equipment to be purchased. Equipment is $5,000 or more per unit, pursuant to 40 CFR
31.3 and 30.2. (Record total on Standard Form 424A, Section B, Line D).
D. Supplies: Itemize budgeted supplies unless their total represents less than two percent of total costs. "Supplies" means
all tangible personal property other than "equipment". The budget detail should identify categories of supplies to be
procured (e.g., laboratory supplies or office supplies).
Supplies are typically $5,000 or less per unit. (Record total on Standard Form 424A, Section B, Line E.)
E. Contractual: Specify the nature and cost of contractual services. EPA may review the contracts for personal services
before the contracts are executed, to assure that all costs are reasonable and necessary to the project. (Record total on
Standard Form 424A, Section B, Line F).
Applicants should review EPA's regulations concerning procurement and the need to provide justification for sole
source agreements and documentation concerning cost or price analysis for contracts and other agreements.
F. Construction: If your budget includes construction costs, contact the Grants Administration Division for additional
instructions while completing your application. (Record total on Standard Form 424A, Section B, Line G)
G. Other: Itemize all costs included here. Include items here that cannot be placed in the more specific categories.
Examples could be sub-grants, postage, or printing. If you are applying for a training project, the itemization should
include a cost breakdown of trainee tuition and fees, book allowances, stipends, and travel. (Record total on Standard
Form 424A, Section B, Line H)
A recipient of EPA assistance may only sub grant to an entity that would have been eligible to receive assistance from
EPA directly (i.e., eligible subgrantee or eligible subrecipient). This also means that the entity would have to be an
eligible subgrantee or eligible subrecipient who is not debarred or suspended or is otherwise excluded from or ineligible
for participation in Federal assistance programs under Executive Order 12549, "Debarment and Suspension." Moreover,
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recipients cannot receive EPA assistance for the sole purpose of subawarding, transferring, or contracting out work
under an award to another entity. Recipients are responsible for ensuring that their subgrantees/subrecipients use EPA
funds for authorized purposes and comply with all applicable Federal regulations, OMB Cost Principles, and the terms
and conditions of the assistance agreement.
H. Indirect Costs: Please indicate how indirect charges were calculated for this project, and remember to attach a copy of
your current indirect cost rate agreement. (Record total on Standard Form 424A, Section B, Line J). If an organization
has not established an indirect cost rate with another Federal Entity, please specify on Standard Form 424A, Section B,
Line J.
If indirect costs are being used, please INCLUDE a copy of your indirect cost rate agreement, if established.
I. Program Income: If any income is expected to be generated from this project, insert the estimated income amount
here. Do not add or subtract this amount from the total project amount. Your detailed direct cost itemization should
show this income's nature and source. Examples of Program Income include: registration fees collected, income from
the sale of products produced under a grant and rental fees generated from equipment purchased with assistance funds.
(Record total on Standard Form 424A, Section B, Line 7)
For reference and more information on allowable costs under federal regulations, please visit the Office of Management
and Budgets website and review the circular appropriate to your organization at (http://www.whitehouse.gov/omb/')
PRE-AWARD COMPLIANCE FOR NON-PROFIT ORGANIZATIONS
EPA assistance awards (grants and cooperative agreements) to non-profit organizations are an important mechanism for
delivering environmental protection to the public. EPA's Office of the Inspector General, however, has issued numerous
audit reports documenting instances of non-profit recipients that have inadequate administrative systems to manage EPA
funds or lack the capability to successfully perform the project scope of work. The Office of Grants and Debarment has
identified similar issues in conducting post award monitoring activities.
Recognizing that it is preferable to address such issues before, rather than after, an assistance agreement is awarded;
EPA has begun evaluating the administrative and programmatic capability of non-profit applicants.
These procedures are based on existing regulatory requirements. Specifically, 40 CFR § 30.14 authorizes EPA to impose
pre-award conditions on a non-profit applicant that has a history of poor performance, is not financially stable, has a
management system that does not meet the standards prescribed in 40 CFR Part 30, has not conformed to the terms and
conditions of a previous award, or is not otherwise responsible. Further, 40 CFR § 30.62 provides EPA with remedies to
deal with non-profit recipients that mismanage assistance agreements either administratively or programmatically.
Finally, under 2 CFR Part 180 and Part 1532, EPA may suspend or debar non-profit applicants or recipients that pose a
serious business risk to the Government.
After receiving notification from the Program Office that an application has been recommended for funding the Grants
Management Office (GMO) must: require the applicant to fill out the Administrative Capability Form contained in
Appendix A to the EPA Order and provide supporting documents; and then conduct a review of this information. If the
GMO, based upon a review of the completed Administrative Capability Form and after checking the Grantee
Compliance Database, determines that the applicant lacks the necessary administrative capability, the award official
must impose pre-award conditions under section 10(b), or special award conditions under Section 10(d), of the EPA
Order. If the GMO finds that the applicant has the necessary administrative capability, pre-award or special award
conditions are not required.
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EPA Administrative and Financial Onsite Review Questionnaire
I. Organization Policies and Procedures
A. General Information / Policies and Procedures.
Many of these questions have "Yes" or "No" answers. For "Yes" answers, please provide
the specific reference to your policies and procedures. Please explain all "No" and "Not
Applicable" answers.
Thank you in advance for completing this questionnaire.
Note: 40 CFR 31 and OMB Circular A-87 (codified as 2 CFR 225) references apply to States, Local
Governments and Indian Tribes.
1. Who or which office(s) in your organization is/are responsible for reviewing,
approving and signing applications, awards and amendments?
2. Who or which office(s) in your organization is/are responsible for monitoring and
overseeing assistance agreements once received from EPA?
3. Do you have a current Organizational Chart? Show or D Yes D No D N/A
explain any non-profit or for profit organization and/or
entities your affiliated with.
4. How does your organization keep up-to-date on federal regulations, legal
decisions, OMB Circulars, etc.?
5. Does your organization have provisions for seeking written D Yes D No D N/A
prior approvals for specific revisions, from the awarding
agency under certain conditions?
(40 CFR 31.30)
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6. The Code of Federal Regulations (40), and OMB Circulars require organizations
receiving federal assistance agreements to have written policies and procedures
for the following areas. (40 CFR 31.20 and 31.21) Do your policies and procedures
address the items described below?
a. Personnel, including qualifications for each position, D Yes D No D N/A
duties and responsibilities, salary ranges, EEO, annual
performance appraisals, types and levels of fringe
benefits, and standards of conduct governing duties and
responsibilities including disciplinary actions for not
adhering to the standards, for employees engaged in the
award and administration of contracts. (OMB A 87 / 2 CFR
Part 225, Appendix B, section 8)
b. Time reporting, tracked to each project; (OMB A 87/2 D Yes D No D N/A
CFR Part 225, Appendix B, Section S.h)
c. Redistributions (Chargeback's); (i.e., other organizational D Yes D No D N/A
department costs; written, established rates required)
d. Payroll processing and internal controls; (OMB A 87 / 2CFR D Yes D No D N/A
Part 225, Appendix B, Section S.h)
e. Overtime (if allowed); (OMB A-87 / 2CFR Part 225, D Yes D No D N/A
Appendix B, section 8)
f. Vacation and Sick Leave (if offered by your organization); D Yes D No D N/A
(OMB A 87 / 2 CFR Part 225, Appendix B, section S.d)
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g-
Compensatory time (if allowed).
D Yes D No D N/A
h.
Equipment and property purchases including cost and
price analysis, purchase, use of, inventory and disposition
of at the end of the project; (40 CFR 31.31, 31.32 &
31.36(f))
D Yes D No D N/A
(A cost analysis is the review and evaluation of each element of cost to determine reasonableness,
allocability and allowability when you do not have other proposals to compare costs against. A
price analysis may be accomplished in various ways, including the comparison of price quotations
submitted, market prices and similar indicators, together with discounts.)
i.
Electronic Funds Transfers (EFT) drawdowns from EPA's
accounts. Does your policy address who is authorized to
request payment from the federal government, what
procedures are used to verify that the request are
accurate, and when drawdown of funds will occur etc.; (40
CFR31.20(b)(7) and 31.21)
n Yes n NO n N/A
j-
Receipt and deposit of advanced payments (40 CFR 31.21
(c)&(e))
D Yes D No D N/A
k.
Records retention. (40 CFR 31.42)
n Yes n NO n N/A
1.
Travel, authorizations, vouchering after the trip and, if
required, trip reporting; (OMB A 87 / 2CFR Part 225,
Appendix B, section 43)
n Yes n NO n N/A
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m. Procurement Standards for supplies, expendable property, D Yes D No D N/A
equipment, real property and services. Standards for
contracting, purchasing, consultant agreements, sub-
awards or grants (if applicable, especially for monitoring
sub grantees) and other types of awards that transfer
federal funds outside of your organization; (40 CFR 31.36,
40 CFR 31.37 and 31.40(a))
n. Provisions for utilizing Small Businesses, Minority Owned D Yes D No D N/A
Firms, Women's Business Enterprises, and Labor Surplus
Area Firms (where possible) (40 CFR 31.36(e))
o. Program income. Is it identified, authorized, accounted D Yes D No D N/A
for, and are limitations placed on its use; (40 CFR 31.25)
p. Cost sharing, matching and In-Kind contributions. Is it D Yes D No D N/A
identified, accounted for and reported; (40 CFR 31.24 and
OMB A 87 / 2CFR Part 225, Appendix B, section 12)
7. Do you have the following documents for each grant award:
a. Original application and certifications; (SF 424, 424A, et D Yes D No D N/A
al.)
b. Work plans and/or statement of work; D Yes D No D N/A
c. Initial award and all amendment documents; D Yes D No D N/A
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d. Request for and approvals of scope and/or budget D Yes D No D N/A
changes; (40 CFR 31.30 (a),(b) & (c))
e. Financial Status Reports and reimbursement requests, if D Yes D No D N/A
applicable; (40 CFR 31.41(b))
f. Payment requests backed up by financial records to D Yes D No D N/A
support the request; (40 CFR 31.20(a)(2))
g. Progress reports; (40 CFR 31.40(b)) D Yes D No D N/A
h. Contracts/Subgrants; (40 CFR 31.37) D Yes D No D N/A
i. Purchases; (40 CFR 31.32 for equipment, 40 CFR 31.33 for D Yes D No D N/A
supplies)
j. Consultant agreements; (40 CFR 31.36(j)) D Yes D No D N/A
k. Correspondence and approvals, including emails to and D Yes D No D N/A
from EPA officials.
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II. Accounting and Financial Management
Many of these questions have "Yes" and "No" answers. For "Yes" answers, please provide the
specific reference to your policies and procedures. Please explain all "No" and "Not Applicable"
answers.
A. Accounting
1.
Does your organization have an accounting manual? (40
CFR 31.20) The CFR requires certain accounting practices /
procedures addressed in the questions below to be
written.
D Yes D No D N/A
2.
Does your organization's accounting and financial
management system(s)follow Generally Accepted
Accounting Principles (GAAP)? (OMB A 87 / 2CFR Part
225, Appendix B, section 8)
n Yes n NO n N/A
3.
Does your organization's accounting and financial
management system(s) provide accurate, current and
complete disclosure of the financial results of each
federally-sponsored project or program (i.e. each award is
accounted for separately) (40 CFR 31.20(b)(l)), and
produce financial reports in accordance with the
requirements of 40 CFR 31.41?
n Yes n NO n N/A
4.
Does your organization's financial management system(s)
provide records that adequately identify the source and
application of funds for federally-sponsored activities,
such as authorizations, obligations, unliquidated
obligations, assets, outlays, income and interest? (40 CFR
31.20,.21&.22)
n Yes n NO n N/A
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5.
Does your organization's accounting and financial
management system(s) provide accurate, current and
complete disclosure of the financial results of each
federally-sponsored project or program (i.e. each award is
accounted for separately) (40 CFR 31.20(b)(l)), and
produce financial reports in accordance with the
requirements of 40 CFR 31.41?
D Yes D No D N/A
6.
Does your organization have written policies and
procedures to ensure that costs are reasonable, allocable
and allowable? (40 CFR 31.20 (b)(5); OMB Circular A-87/
2CFR Part 225, Appendix A, Section C)
D Yes D No D N/A
7.
Does your organization monitor allowable costs to ensure
they are charged to the grant within the specified period.
(40 CFR 31.23)
D Yes D No D N/A
8.
Does your financial management system(s) report and
provide for a comparison of outlays or grant project
expenditures, with budget amounts for each grant
project/award or have the capability to do so? (40 CFR
31.20(b)(4))
D Yes D No D N/A
9.
Does your organization have budgetary controls to
preclude incurring excess expenditures? (40 CFR
31.20(b)(4))
n Yes n NO n N/A
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10.
Does your accounting system have provisions for
reviewing and monitoring project budgets and program
plans, and reporting and rectifying deviations that may
occur in them? (40 CFR 31.20(b)(4) and 31.30)
D Yes D No D N/A
11.
Do you have a current audit? (40 CFR 31.26)
n Yes n NO n N/A
12.
If your organization expended more than $500,000 of
Federal funds in the most recent fiscal year, did you
obtain an audit in accordance with OMB Circular A-133?
(40CFR31.26(a))
D Yes D No D N/A
13.
If your organization had an A-133 Audit performed, were
there any findings, material weaknesses or reportable
conditions identified? If there were, briefly explain or
provide a copy of the findings section and your corrective
actions taken.
n Yes n NO n N/A
14.
If your organization requests reimbursement for indirect
costs under the grant award, does your organization have
an approved indirect cost rate? (OMB Circular A-87 / 2CFR
Part 225, Appendix E)
n Yes n NO n N/A
15.
Does your organization have written procedures for
drawing grant funds and issuing payments? (40 CFR
31.20(b)(7) and 31.21 (b) and (c)) Note: Payment requests
should be restricted to immediate needs, i.e. drawing
down funds 3 to 5 working days in advance of
disbursements.
n Yes n NO n N/A
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16.
What type of accounting and financial management
system(s) does your organization use? Name of
automated system(s)?
D Yes D No D N/A
17.
Are accounting records supported by source
documentation? (40 CFR 31.20(b) (6))
n Yes n NO n N/A
B. Personnel /Timekeeping
(Reference: OMB Circular A-97 / 2 CFR Part 225, Appendix B, section 8)
Many of these questions have "Yes" or "No" answers. For "Yes" answers, please provide
the specific reference to your policies and procedures. Please explain all "No" and "Not
Applicable" answers.
1.
Does your organization have written payroll policies and
procedures?
n Yes n NO n N/A
2.
Do your employees record: actual hours worked directly
on all projects, indirect or administrative time not charged
directly to a project, and leave taken?
n Yes n NO n N/A
3.
For those employees required to work away from the
office, are actual hours worked documented?
n Yes n NO n N/A
4.
Do payroll registers and reports match up with costs for
each employee whose compensation is charged to an
assistance agreement?
n Yes n NO n N/A
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5. Are timesheets required to be signed by the individual or D Yes D No D N/A
supervisor?
C. Personnel / Payroll
Many of these questions have "Yes" or "No" answers. For "Yes" answers, please provide
the specific reference to your policies and procedures. Please explain all "No" and "Not
Applicable" answers.
Does your organization's written policies and procedures provide for the following controls
for the payroll function?
1.
Does the policy provide adequate separation of duties?
D Yes D No D N/A
2.
Are salaries and wage rates established, authorized and
approved in your organization to ensure equity?
n Yes n NO n N/A
3.
Does your payroll process ensure that all deductions from
employee's salaries are authorized by the employee, and
proper?
D Yes D No D N/A
4.
How are payrolls distributed? D EFT D Manual Checks D Both
5.
If checks are distributed manually, are there sufficient
controls to ensure that payroll checks are distributed to
the correct employee?
n Yes n NO n N/A
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D. Travel (Ref: OMB Circular A-87/ 2 CFR 225, Appendix B, section 43)
Many of these questions have "Yes" or "No" answers. For "Yes" answers, please provide
the specific reference to your policies and procedures. Please explain all "No" and "Not
Applicable" answers.
1.
Does your organization have written travel policies and
procedures?
n Yes n NO n N/A
2.
Are internal controls in place to ensure that employees
follow your organization's travel policy, i.e. levels of
review prior to authorizing payment and that the travel
was associated with the specific grant project?
D Yes D No D N/A
3.
Are internal controls in place to ensure that travel and
time reporting support the employee's activities while on
travel?
n Yes n NO n N/A
4.
Do the policies and procedures include provisions to
ensure that travel costs are allowable, allocable and
reasonable?
n Yes n NO n N/A
E. Matching, Cost Sharing, In-Kind Contributions and Program Income
40 CFR 31.24 (a) to (e) provides criteria on the acceptability, purpose, and types of
contributions made in relation to cost sharing or matching purposes, and the support for such.
40 CFR 30.24 and 31.25 addresses the accounting for Program Income related to Federally
funded projects.
Many of the questions below have "Yes" or "No" answers. For "Yes" answers, please
provide the specific reference to your policies and procedures. Please explain all "No" and
"Not Applicable" answers.
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1.
Does your organization currently have any Matching, Cost
Sharing and/or In-Kind costs included in any active awards
or anticipate any of these types of costs in the foreseeable
future?
No (Skip this entire section)
Yes (Please complete the rest of this section.)
n Yes n NO n N/A
2.
Do any of the matching costs come from another federal
grant(s)? (If Yes, it must be authorized in the terms and
conditions of the assistance agreement)
n Yes n NO n N/A
3.
Are these costs identified in the approved grant project
budget?
n Yes n NO n N/A
4.
Does your organization track, record, report and verify
these costs?
n Yes n NO n N/A
5.
Are all matching costs verifiable from accounting records
and valued according to applicable OMB Circular cost
principles?
n Yes n NO n N/A
OMB Circular A-87 / 2CFR Part 225, Appendix B, paragraphs 8 & 12
6. Has any program income been used to satisfy the D Yes D No D N/A
recipient's contribution for any current award or added to
the funds committed for the project?
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7. Is there a term and condition in the award that permits
the use of program income for match requirements or for
adding it to the funds committed to the project?
n Yes n NO n N/A
8. If there is no term and condition, has the program income
been deducted from the total allowable project cost?
D Yes D No D N/A
F. Procurement/ Contracts /Subagreements
Many of these questions have "Yes" or "No" answers. For "Yes" answers, please provide
the specific reference to your policies and procedures. Please explain all "No" and "Not
Applicable" answers.
1.
Does your organization have written procurement policies
and procedures?
n Yes n NO n N/A
2.
Has your organization awarded contracts or
subagreements under any of the award agreements being
reviewed? (Agreements refer to subgrant(s). Subgrant(s)
mean 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, subrecipient or by
a subrecipient to a lower tier subrecipient. This includes
financial assistance when provided by contractual legal
agreement, but does not include procurement purchases
of goods and services.) (40 CFR 31.3)
n Yes n NO n N/A
3. Were contracts awarded in accordance with your organization's contracting policy
and does this policy comply with 40 CFR Part 30.40 to 30.48 or Part 31.36 & .37, as
described below:
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a.
Contains a written code of conduct that addresses conflict
of interests and disciplinary actions. (40 CFR 3l.36(b)(3))
D Yes D No D N/A
b.
Provides for competing transactions in a free and open
manner. (40CFR3l.36(c))
n Yes n NO n N/A
c.
Provides for a review to avoid unnecessary purchases, a
review of lease vs. purchase alternatives (when
appropriate), conducting solicitations with a clear scope of
work and bidder requirements, conserving natural
resources, and utilizing small, MBE and WBE firms when
possible. (40CFR31.36(c)(3))
n Yes n NO n N/A
d.
Requires performing and documenting a cost analysis for
sole source procurements. (A cost analysis is the review
and evaluation of each element of cost to determine
reasonableness, allocability and allowability when you do
not have other proposals to compare costs against.) (40
CFR31.36(f))
n Yes n NO n N/A
e.
Requires performing and documenting a price analysis for
competitive bidding and small purchase procurement
actions. (A price analysis may be accomplished in various
ways, including the comparison of price quotations
submitted, market prices and similar indicia, together with
discounts.) (40 CFR 3i.36(f))
n Yes n NO n N/A
f.
Requires documenting the basis for all procurement
selections, justifying a lack of competition and basis for
award cost and price. (40 CFR 31.36 (b)(9))
n Yes n NO n N/A
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Provides for the Grantor's pre-award review of the D Yes D No D N/A
procurement when the award or contract modification
exceeds $100,000, is not competed, or only one bid is
received. (40CFR3l.36(g)(2))
h.
Discusses purchase/agreement /contract cost thresholds
(small purchases vs. major procurements) and personnel
required to approve procurements.
D Yes D No D N/A
i.
Has provisions that no contract or sub award will be
entered into with parties that are debarred, suspended or
excluded from Federal assistance
programs. (40 CFR 31.35)
D Yes D No D N/A
4.
Do any of your organization's contracts for grant projects
exceed the Federal Small Purchases threshold,
($100,000)?
D Yes D No D N/A
5.
If Yes, did EPA request to review the contract prior to
award? (40CFR3l.36(g)(2))
D Yes D No D N/A
6.
If Yes, did EPA provide written comments?
D Yes D No D N/A
7.
Does your organization use a pre-qualified list of persons,
firms or products to acquire goods and services?
n Yes n NO n N/A
OMB control number 2030-0020 EPA form number 6600-01
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8. Did your organization follow its procurement policies to D Yes D No D N/A
place and update vendors on the list?
9. Has your organization established an affirmative D Yes D No D N/A
procurement system for recycled materials and
compliance with environmental statutes? (40 CFR 31.13)
10. Does your organization have internal control processes to D Yes D No D N/A
ensure that only required goods and services are acquired
in quantities needed? (40 CFR 3l.36(b)(4))
11. Does your organization have internal control processes to D Yes D No D N/A
ensure that only acceptable goods and services are paid
for by the accounting/finance department? (40 CFR
3l.2Q(b)(5))
12. Does your organization have guidelines for documenting D Yes D No D N/A
its contract files?
13. Has your organization awarded contracts to consultants D Yes D No D N/A
under current assistance agreements?
14. Are internal controls for consulting agreements in place to D Yes D No D N/A
ensure that your organization does not charge EPA
assistance agreements more than the authorized direct
salary cap? (40 CFR 3l.36(j))
OMB control number 2030-0020 EPA form number 6600-01
EPA Tribal, US, Territories and Insular Arras Administrative and Financial Guidance for Assistance Agreements
Last Updated September 2013 page 134 of 519
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15. Do your consulting agreements specify the services to be D Yes D No D N/A
provided, engagement duration, reporting requirements,
work location and pay rates including base rate, fringe
benefits and overhead?
G. Small Businesses, Minority Owned Firms, Women' Business Enterprises and Labor Surplus
Area Firms (where applicable). (40 CFR 31.36(e))
For "Yes" answers, please provide the specific reference to your policies and procedures.
Please explain all "No" and "Not Applicable" answers.
1. Does your organization submit timely D Yes, date of the last submittal to EPA
reports (MBE/WBE Reports) to EPA, on Date
business activities with these types of D No, please explain.
firms?
H. Property Management (40 CFR 31.31 & 40 CFR 31.32)
Many of these questions have "Yes" or "No" answers. For "Yes" answers, please provide
the specific reference to your policies and procedures. Please explain all "No" and "Not
Applicable" answers.
1. Does your organization have written property
management policies and procedures?
D Yes D No D N/A
2. Has your organization purchased capital equipment on
any of its active assistance agreements?
Yes (Please complete this section.)
No (Go to Section 1.)
n Yes n NO n N/A
Equipment, under Federal Guidelines, is equipment that is considered tangible items with a useful
life greater than one year and greater than $5,000 in value. Grantees may have limits that are
different than the Federal Guidelines. That is acceptable as long as the limits are not greater than
the Federal Guidelines.
OMB control number 2030-0020 EPA form number 6600-01
EPA Tribal, U.S. Territories and Insular Areas Administrative and Financial Guidance? for Assistance? Agreements
Last September 2013 135 of 519
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3.
Does your organization
(40 CFR 31.32)
have an inventory control system?
n Yes n NO n N/A
4.
Does your organization maintain property records that
identify equipment purchased, either entirely or partially,
with Federal funds? (40 CFR 3l.32(d))
n Yes n NO n N/A
5.
Does your organization
least every two years?
perform a property inventory at
Date of last inventory
n Yes n NO n N/A
6.
Does your organization
dispositions?
maintain records of property
n Yes n NO n N/A
/. Internal Controls
Many of these questions have "Yes" or "No" answers. For "Yes" answers, please provide
the specific reference to your policies and procedures. Please explain all "No" and "Not
Applicable" answers.
1. Does your organization have policies and procedures to
ensure compliance with the cash management
requirements in 40 CFR 31.20((b)(3)?
n Yes n NO n N/A
a. Does your organization have an internal auditor, audit
staff or someone on the Board of Directors that provides
for an independent review of the accounting and financial
management process, cash receipts and payments, and
safeguarding of assets?
n Yes n NO n N/A
OMB control number 2030-0020 EPA form number 6600-01
EPA Tribal, US, Territories and Insular Arras Administrative and Financial Guidance for Assistance Agreements
Last Updated September 2013 136 of 519
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2. Does your organization have policies and procedure to D Yes D No D N/A
ensure compliance with closing out assistance awards
after the performance and budget periods? (40 CFR 31.50)
3. Does your organization have a process in place to ensure compliance with the
Programmatic Term and Conditions in the following areas:
a.
Submitting programmatic progress reports;
D Yes D No D N/A
b.
Establishing and obtaining approval of a Quality Action
Plan, if required;
D Yes D No D N/A
c.
Establishing a process to track, monitor and report on
Environmental Results?
D Yes D No D N/A
The annual public reporting and recordkeeping burden for this collection of information is
estimated to average 30 hours per respondent. If you wish to comment on the Agency's need for
this information, the accuracy of the provided burden estimates, and any suggested methods for
minimizing respondent burden, including the use of automated collection techniques, send them
to US EPA, Collections Strategies Division (2822T), 1200 Pennsylvania Ave. NW, Washington, DC
20460.
OMB control number 2030-0020 EPA form number 6600-01
EPA Tribal, U.S. Territories and Insular Areas Administrative and Financial Guidance? for Assistance? Agreements
Last September 2013 137 of 519
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EPA Electronic Funds Transfer (EFT)
Assistance Agreement Payment Process
• Award signed by EPA award official
• Recipient signs acceptance of agreement
• Finance office notified that award is accepted
• Funds are made available to recipients
Payment Methods - EPA EFT via ACH
• Electronic Funds Transfer (EFT) via EPA's accounting system
o Recipient provides banking information to receive funds electronically
o Submits ACH payment request
o Payments electronically deposited within 2-3 working days
The ACH Enrollment Form - SF 3881 is available online at
http://www.epa.gov/ogd/forms/adobe/SF3881.pdf.
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ACH VENDOR/MISCELLANEOUS PAYMENT
ENROLLMENT FORM
OM8 No- 1510-0056
This form is used for Automated Clearing House (ACH) payments with an addendum record that contains
payment-related information processed through the Vendor Express Program. Recipients of these
payments should bring this information to the attention of their financial institution when presenting this
form for completion. See reverse for additional instructions.
PRIVACY ACT STATEMENT
The following information is provided to comply with the Privacy Act of 1974 (P.L. 93-579). All
information collected on this form is required under the provisions of 31 U.S.C. 3322 and 31 CFR
210. This information will be used by the Treasury Department to transmit payment data, by
electronic means to vendor's financial institution. Failure to provide the requested information may
delay or prevent the receipt of payments through the Automated Clearing House Payment System.
AGENCY INFORMATION
FEDERAL PROGRAM AGENCY
U.S. Environmental
AGENCY IDENTIFIER:
LVFC
ADDRESS:
PO Box 98515
Protection Agency
AGENCY LOCATION CODE IALCI: ACH FORMAT:
68128933 |*]ccDt L"D CTX
Las Vegas, KV 89193-8515
CONTACT PERSON NAME:
ADDITIONAL INFORMATION:
TELEPHONE NUMBER:
( 702 ) ','•}* ^4i.b
FAX Number: (702) 798-2423
PAYEE/COMPANY INFORMATION
NAME
SSN NO. OR TAXPAYER ID MO.
ADDRESS
CONTACT PERSON NAME:
TELEPHONE NUMBER:
( )
FINANCIAL INSTITUTION INFORMATION
ACH COORDINATOR NAME:
TELEPHONE NUMBER:
NINE-DIGIT BOUTINS TRANSIT NUMBER:
DEPOSITOR ACCOUNT TITLE:
DEPOSITOR ACCOUNT NUMBER:
LOCKBOX NUMBER:
TYPE OF ACCOUNT:
I I SAVINGS
I I LOCK
SIGNATURE AND TITLE OF AUTHORIZED OFFICIAL:
(Could be the i=mc a; ACH Coordinator)
TELEPHONE NUMBER:
AUTHORIZED FOR LOCAL REPRODUCTION
SF 3881 (Rev. 2/2003 )
Prescribed by Department ot Treasury
31 USC 3322; 31 CFH 210
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Instructions for Completing SF 3881 Form
Make three copies of form after completing. Copy 1 is the Agency Copy; copy 2 is the
Payee/Company Copy; and copy 3 is the Financial Institution Copy.
1. Agency Information Section - Federal agency prints or types the name and address of
the Federal program agency originating the vendor/miscellaneous payment, agency
identifier, agency location code, contact person name and telephone number of the
agency. Also, the appropriate box for ACH format is checked.
2. Payee/Company Information Section - Payee prims or types the name of the
payee/company and address that will receive ACH vendor/miscellaneous payments,
social security or taxpayer ID number, and contact person name and telephone number
of the payee/company. Payee also verifies depositor account number, account title, and
type of account entered by your financial institution in the Financial Institution
Information Section.
3. Financial Institution Information Section - Financial institution prints or types the name
and address of the payee/company's financial institution who will receive the ACH
payment, ACH coordinator name and telephone number, nine-digit routing transit
number, depositor (payee/company) account title and account number. Also, the box
for type of account is checked, and the signature, title, and telephone number of the
appropriate financial institution official are included.
Burden Estimate Statement
The estimated average burden associated with this collection of information is 15 minutes
per respondent or recordkeeper, depending on individual circumstances. Comments
concerning the accuracy of this burden estimate and suggestions for reducing this burden
should be directed to the Financial Management Service, Facilities Management Division,
Property and Supply Branch, Room B-101, 3700 East West Highway, Hyattsville, MD
20782 and the Office of Management and Budget, Paperwork Reduction Project
(1510-00561, Washington, DC 20503.
For more information about the SF 3881 ACH Vendor Payment Enrollment Form or to acquire the
form visit: http://www.epa.gov/ogd/forms/adobe/SF3881.pdf.
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EPA Payment Request
U.S. EPA PAYMENT RE QUEST
Recipient Name:
Fax*:
Contact Person:
Phone #:
Email address:
EFT#
Assistance Aoree rnent
^
Request*
Accouit Ho/Activity Code
(Superfund Site Specific)
Cash on Hand:$
$ Amount
TOTAL AMOUNT REQUESTED$
Mark
(XI if
Credit
Fcr EPA Intans) Use Oil y
I certify that to the best of my know ledge and beliefthe data above are correct
3 nd that a II outlays ui e re ma de in a coord an ce uj ith the grant con dition s o r othe r
agreement and that payment is due and has not been previously re quested.
APPROVALS:
Recipient Approving Official's Signature
Date Approved
EPA. Certifying Officer Approval
EPA190-F-04-D01
Date Approved
EPA APPROVED AMOUNT
For EPA Use Only
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Payment Methods - ASAP
• Electronic system thru Federal Reserve Bank of Richmond
• Utilizes ACH and FEDWIRE
• Federal agencies establish accounts and spending authorizations
• Recipient initiates payments
• System approves or rejects payments
• Approved payments made same or next day
• Funds are credited to recipient account
• Enrollment Process
o Recipient contacts EPA to request enrollment
o Agency contacts Treasury and provides recipient enrollment data
o Treasury provides recipient with software, instructions, user IDs, and training
o EPA reconciles grant balances with recipient and establishes accounts in ASAP
• Benefits of ASAP
o One time enrollment
o No communication software costs
o Minimal hardware costs
o Fewer systems
o Greater flexibility
Required Financial Reports
o As of October 1, 2009, the Federal Financial Report (FFR) Standard Form (SF) 425 replaced:
• Standard Forms 269 and 269A Financial Status Report (FSR)
• Standard Forms 272 and 272A Federal Cash Transactions Report
o FFR SF 425 can be downloaded from http://www.epa.gov/ogd/forms/adobe/SF425.pdf.
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Payment Process Recipients Manual, Exhibit A
http://www.epa.gov/ocfo/finservices/recipient manual.pdf
United States
Environmental Protection Agency
Las Vegas Finance Center (LVFC)
October 2003
Replaces .Ajly200Sedition
US ENVIRONMENTAL PROTECTION AGENCY
ELECTRONIC FUNDS TRANSFER (EFT)
PAYMENT PROCESS
Prepared by: Las Vegas Finance Center (LVFC)
EPA Tribal, U.S. Territories and Insular Areas Administrative and Financial Guidance for Assistance Agreements
Last Updated September 2013 page 143 of 519
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I PURPOSE
lliese instructions provide procedures to be followed by participating recipient
organizations for requesting funds authorized by assistance agreements from the U.S.
Environmental Protection Agency (EPA) under the Electronic Funds Transfer (EFT)
Payment System, herein referred to as the EPA-EFT Payment Process. This system
utilizes Automated Clearing House for transferring payments to your banking institution.
All required financial forms as well as instructions on how to complete them can be
found on Las Vegas Finance Center's (LVFC) webpage:
http://www.epa.gov ocfo Tmservicespavinfo,htm
II AUTHORITY
These instructions are established under provisions in the Federal Acquisition Regulation
guidelines provided by the U.S. General Services Administration (OSA), Section 52.232-
28 AElcctronic Funds Transfer Payment Methods g as prescribed in 32.908(d) as revised.
Ill GENERAL
The EPA-EFT Payment Process is an electronic funds transfer process initialed by EPA
in response to the Debt Collection Improvement Act of 1996. P.L. 104-134. that requires
all federal payments be made via Direct Deposit/Electronic Funds Transfer (DD/EFT).
Using the EPA-EFT Payment Process, the recipient submits a AU.S. EPA Payment
Requests (EPA form 190-F-04-001) via fax to LVFC at 702-798-2423.
LVFC will review each request. When the request is approved for payment, EPA will
electronically transfer funds through the U.S. Department of Treasury and the Federal
Reserve for credit to the recipient's account at their designated financial institution,
usually within 48 to 72 hours following receipt and approval of the request. If the entire
request or a portion of the request is rejected, the recipient will be notified by LVFC no
later than one workday following receipt of the request.
IV ENROLLMENT PROCESS FOR THE EPA-EFT PAYMENT SYSTEM
A, "Hie recipient organization must complete the ACH Vendor/Miscellaneous Payment
Enrollment Form (SF 3881). The recipient will send the completed SF 3881 to
LVFC.
B. LVFC receives and reviews the completed SF 3881 form for accuracy, and will enter
the enrollment information into its vendor database for assistance agreements.
C, LVFC will provide the recipient a confirmation assigning them an EFT Control
Number as well as a link to LVFC's internet website where the recipient can access
all required forms and instructions on how to complete them.
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PROCEDURES FOR REQUESTING FUNDS
Once EFT enrollment is complete and the Assistance Agreement has been affirmed by the
recipient organization and sent back to the grant specialist, recipients may begin
requesting funds based on their immediate disbursement requirements.
A. Preparation of U.S. EPA Payment Request
1. All payment requests must include the EFT Control Number provided by
LVFC'.
2. Payment Requests cannot exceed authorized amounts lor each individual
assistance agreement. Recipients should refer to individual assistance
agreements for any additional terms and conditions applicable when
requesting funds from EPA (i.e., LUST, Site Specific Superfund, etc.).
Recipients who receive assistance agreements from EPA's Superfund
program must also include the Site Specific Superfund Account Number
in the Account Number/Activity Code field.
B. Submitting the U.S. EPA Payment Request to EPA
The U.S. EPA Payment Request should be faxed to 702-798-2423 as early in the
day as possible to allow for timely processing.
C. Review of EFT Payment Request
Upon receipt of the payment request, LVFC will review the request to determine
if:
S Funds drawn are being used within an authorized budget period
,5 "Hie EFT Control Number is correct
.? Hie recipient name is correct
$ Assistance Agreement numbers arc correct and sufficient funds are
available
S All required expenditure or program reports have been received
$ Cash on hand (COII) is not excessive(see Section VI - Cash Management
Requirements); and
$ U.S. EPA Payment Request is signed.
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D. Approved Payment Request
Payments approved by LVFC are transmitted to the recipients financial
institution usually within 48 to 72 hours following the approval. When the
recipient s financial institution receives the funds, they will provide the recipient
with notice of credit and or Aaddenda/remittancels information. If the
addenda, remittance information has not been received on the anticipated payment
date, the recipient organization should contact its financial institution to determine
if an EPA payment was received. If a payment was not received, the recipient
organization should notify LVFC immediately so that appropriate action may be
taken.
E. Rejection or Modification of the U.S. EPA Payment Request
Under the EPA-EFT Payment Process, all or part of a request may be approved for
payment. If a request is modified or rejected, LVFC will immediately notify the
recipient.
VI CASH MANAGEMENT REQUIREMENTS
The EPA-EFT Payment Process is designed to provide federal funds to a recipient
organization generally within 48 to 72 hours following LVFC approval of the U.S. EPA
Payment Request. Therefore, the recipient organization should request funds based on
immediate disbursement requirements only, and should disburse funds as soon as possible
to minimize the Federal cash on hand in accordance with policies established in Treasury
Department Circular 1075. Withdrawal of Cash from the Treasury for Advances under
Federal Grant and Other Programs. EPA will monitor payment requests to ensure that
recipient organizations are maintaining minimal balances of Federal funds. Each
payment request will be reviewed by EPA prior to approval to ensure that payment will
not result in excessive funds on hand or violation of award authority.
VII FINANCIAL STATUS REPORTING
A. Recipients' Responsibilities and Records.
Recipients of Federal funds under EPA assistance agreements are responsible for
providing EPA with financial reports. Records must be maintained to satisfy the
particular requirements of the programs under which the Assistance Agreement
was awarded. Under the EPA-EFT Payment Process, such records must enable
EPA to ascertain that the cash requests are directly related to and closely timed to
the actual disbursement needs for liabilities involving EPA supported projects.
Moreover, the records must have the capability of providing information as to the
Federal share of accnied costs. Copies of the following Financial Reports as well
as all other required financial reports can be retrieved from the LVFC website:
http: /vvww.cpa.gov/ocfo.fjnserviccs.fortns.htm.
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B. Required Reports
1. Federal Financial Report, SF425. A final SF425 (see website for the form and
instructions) report must be submitted within 90 days after the budget period end date.
The report must he prepared in accordance with the instructions and forwarded to:
Las Vegas Finance Center
PO Box 98515
Las Vegas, NV 89193-8515
or foxed to 702-798-2423
Generally applicable reporting requirements may be found in the Code of Federal
Regulations, for example:
State/Local Governments and Indian Tribes, see 40 CFR Part 31,
Recipients other than State/Local Governments, such as Universities, etc., see 40
CFR Part 30. Cooperative Agreements for Superfund State Contracts for
Superfund Response Action, see 40 CFR Part 35 Subpart O.
In addition, recipients should consult the terms and conditions ol their assistance
agreements for additional reporting requirements.
EPA Tribal, U.S. Territories and Insular Areas Administrative and Financial Guidance for Assistance Agreements
Last Updated September 2013 page 147 of 519
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Fair Share Objectives Fact Sheet
http://www.epa.gov/osbp/pdfs/dbe/mbe wbe certification.pdf
Old MBE/WBE Program
FAIR SHARE OBJECTIVES
Program Comparison
New DBE Program
Recipients must negotiate fair share objectives
with the Agency.
Recipients must negotiate fair share objectives with the
Agency. Proposed fair share objectives and supporting
documentation must be submitted within 120 days
after the acceptance of the assistance award.
For Superfund grants, fair share objectives must
be negotiated before funds may be expended
for procurement under the financial assistance
agreement.
For all grants, fair share objectives must be negotiated
before funds may be expended for procurement under
the financial assistance agreement.
Fair share objectives must be based on an
availability analysis, disparity study, or other
supporting data and documentation.
No Change
Fair share objectives will remain in effect for 3
fiscal years, unless there are significant changes
to the data supporting the fair share objectives.
No Change
Recipients may adopt the fair share objective of
another recipient.
No Change. Recipients will affirm the acceptance of the
other recipient's fair share objective in the grant terms
and conditions.
No exemptions to the fair share objectives
requirement.
The following are exemptions from the fair share
objective requirements:
• Grant and loan recipients receiving a total of
$250K or less in EPA financial assistance in a
given fiscal year.
• Tribal recipients of Performance Partnership
Eligible grants under 40 CFR Part 35, Subpart B.
- There is a 3-year phase in period for the
requirement to negotiate fair share
goals for Tribal and Insular Area
recipients.
• Recipients of Technical Assistance Grants.
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What are Fair Share Objectives?
• A fair share objective is goal based on the capacity and availability of qualified, certified MBEs and
WBEs in the relevant geographic market for the procurement categories of construction,
equipment, services, and supplies...compared to the number of all qualified entities in the same
market for the same procurement categories, adjusted, as appropriate, to reflect the level of MBE
and WBE participation expected absent the effects of discrimination.
• A fair share objective is not a quota.
• A recipient cannot be penalized for not meeting its fair share objectives.
What is the process for negotiating fair share objectives?
• A recipient must submit its proposed MBE and WBE fair share objectives and supporting
documentation to its designated Regional MBE/WBE Coordinator within 120 days after its
acceptance of its financial assistance award.
• EPA must respond in writing to the recipient's submission within 30 days of receipt, either agreeing
with the submission or providing initial comments for further negotiation. Failure to respond within
this time frame may be considered as agreement by EPA with the fair share objectives submitted by
the recipient.
• MBE and WBE fair share objectives must be agreed upon by the recipient and EPA before funds
may be expended for procurement under the recipient's financial assistance agreement.
• Fair Share Objectives will remain in effect for three fiscal years unless there are significant changes
to the data supporting the fair share objectives.
Under the new DBE Program, may I adopt the Fair Share Objective of another recipient?
• Yes! Recipients may use the approved fair share objective of another recipient with the same or
similar relevant geographic buying market, purchasing the same or similar items.
• Recipients who normally accept the negotiated fair share objective of the state in which they are
located, can continue to do so. This will be done by affirming the acceptance of the fair share
objective in the grant terms and conditions. However, they may also elect to negotiate their own
fair share objectives.
How do I determine a fair share objective?
There are many methods that can be used to formulate a fair share objective. For more information
on methods, please refer to the DBE Program Manual which can be found at www.epa.gov/osdbu.
EPA Tribal, U.S. Territories and Insular Areas Administrative Financial Guidance for Assistance Agreements
Last September 2013 149 of 519
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Federal Funding Accountability and Transparency Act (FFATA)
• The Office of Grants and Debarment's "Initial Guidance on Federal Funding Accountability and
Transparency Act Requirements for Subaward and Executive Compensation Data Reporting for non-
ARRA Assistance Agreements" can be found at
http://www.epa.gov/ogd/forms/ffata memo final 10 22 10.pdf.
• FFATA Guidance and Background Materials can be found on USASpending.gov at
http://usaspending.gov/news.
• System for Award Management (SAM) registration can be found at www.sam.gov.
o Many recipients of Federal funding already have completed Registration. Please check
whether you have registered.
• DUNS Registration: http://fedgov.dnb.com/webform
o Most recipients of Federal funding already have completed DUNS registration. Please check
whether you have registered.
• FFATA Subaward Reporting System (FSRS): https://www.fsrs.gov/
o Sub-award reporting user guides, FAQ and on-line demonstrations are available at
www.fsrs.gov.
o More information, from the Office of Management and Budget, regarding the directive
entitled "Open Government Directive - Federal Spending Transparency and Subaward and
Compensation Data Reporting" can be found at
http://www.whitehouse.gov/sites/default/files/omb/open/Executive Compensation
Reporting 08272010.pdf
EPA Tribal, U.S. Territories and Insular Areas Administrative and Financial Guidance for Assistance Agreements
Last Updated September 2013 page 150 of 519
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Functional Requirements Letter (FRL) 8569-3
http://edocket.access.gpo.gov/2008/pdf/E8-11409.pdf
ENVIRONMENTAL PROTECTION AGENCY
[FRL-8569-3]
Disallowing Management Fees in EPA Assistance
Agreements
AGENCY: Environmental Protection Agency (EPA).
ACTION: Notice.
SUMMARY: The term "management fees or similar charges"
refers to expenses added to the direct costs in order to accumulate
and reserve funds for ongoing business expenses, unforeseen
liabilities, or for other similar costs which are not allowable under
EPA assistance agreements. EPA will not, as a matter of policy,
allow recipients of EPA financial assistance to charge management
fees to their agreements with the Agency. Recipients will have
actual notice of EPA's policy prohibiting management fees through
a term and condition and competitive solicitation announcements.
EPA funds for financial assistance are limited. The Agency
has decided that, in the absence of contrary statutory direction, the
public's interest in supporting projects that promote environmental
protection is best served by ensuring that EPA financial assistance is
used only to pay for costs that are allocable to the specific project
receiving EPA financial assistance, and are reasonable and necessary
for the performance of the project. Management fees or similar
charges may not be used to improve or expand the capacity of
organizations carrying out EPA funded projects, except to the extent
authorized by the terms of the agreement as a direct cost of carrying
out the scope of work. EPA's "no management fee" policy is
consistent with OMB Circular A-122, as codified at 2 CFR Part 230.
According to 2 CFR Part 230, Appendix B, Item 9, contributions to
contingency reserves for unforeseen events are unallowable.
Therefore, management fees or similar charges in excess of the
direct costs and approved indirect rates are not allowable under EPA
assistance agreements.
FOR FURTHER INFORMATION CONTACT:
Brian Hanlon, 202-564-2865.
Dated: May 15, 2008.
Howard Corcoran,
Director, Office of Grants and Debarment.
[FRDoc. E8-11409 Filed 5-20-08; 8:45 am]
BILLING CODE 6560-50-P
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Glossary
Accounting - A recording of all and any financial transactions maintained for all financial activities.
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)
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)
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)
Administrative Order - a legal document signed by EPA directing an individual, business, or other entity to
take corrective action or refrain from an activity. The order describes the violations and actions to be taken,
and can be enforced in court. Such orders may be issued, for example, as a result of an administrative
complaint whereby the respondent is ordered to pay a penalty for violations of a statue.
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)
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)
Allocable costs - costs that are allocable to a particular cost objective to the extent benefits received by
such objective. (A-87)
Allocation - The assignment of costs to a particular cost objective in the budget work plan.
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)
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)
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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.
Applicable credits - receipts or reductions of expenditures that offset or reduce costs allocable to federal
awards as direct or indirect costs.
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)
Approval memo - a memo originated by the project officer and concurred in by the immediate supervisor
which denotes work plan and Federal funding approval. (Region 9)
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)
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)
Audit finding - deficiencies which an auditor is required to report in the schedule of findings and questioned
costs
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)
Availability - a measure of the approximate representation and capacity of DBEs in the relevant labor
market and qualified to do the work in issue, adjusted, as appropriate, to reflect the estimated
representation and capacity of such DBEs that would exist in the absence of discrimination. (DBE Guide)
Availability analysis - account for the appropriate firms in the market area and determines the percentage
of firms that are DBEs. Two common methods for analyzing the market are the (1) availability analysis and
(2) disparity study.
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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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)
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)
Bid responsibility - in the contract-bidding process, the apparent ability of a bidder to successfully carry out
the requirements of a contract. The determination of bidder responsibility focuses upon the bidder's
apparent ability to perform in the required manner on the date the performance is required. (DBE Guide)
Bid responsiveness - a responsive bid is one which on its face meets the specifications and the material
terms of an Invitation for Bid. Material terms are those terms affecting price, quantity, quality, or delivery
and any other terms which are clearly identified by the bid solicitation documents as requirements that
must be complied with at the time of bid in order for the bid to be accepted as "responsive". (DBE Guide)
Bookkeeping-The recording of financial transactions.
Budget period (see also "funding period") - the length of time EPA specifies in an assistance agreement
during which the recipient may spend or obligate Federal funds. (40 CFR Part 30)
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)
Central Service Cost Allocation Plan - A strategy identified and consistently allocated to the benefiting
departments to cover the needs for the grant recipient, as well as for the federal government award
project.
Closeout - 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) 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)
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)
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)
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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)
Construction -the construction, alteration, or repair) including dredging, excavating, and painting) of
buildings, structures, or other real property. For purposes of this definition, the terms "buildings, structures,
or other real property" include but are not limited to improvements of all types, such as bridges, dams,
plants, highways, parkways, streets, subways, tunnels, sewers, mains, power lines, cemeteries, pumping
stations, railways, airport facilities, terminals, docks, piers, wharves, ways, lighthouses, buoys, jetties,
breakwaters, levees, canals, and channels. Construction does not include the manufacture, production,
furnishing, construction, alteration, repair, and processing, or assembling of vessels, aircraft, or other
personal property. (DBE Guide)
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)
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)
Continuing environmental program - 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.)
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")
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 procurement subcontract under a contract. (A-102)
Contractor - any party to whom a recipient awards a subagreement. (40 CFR Part 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) A legal instrument EPA uses to transfer money, property, services, or anything
of value to a recipient to accomplish a public purpose in which substantial EPA involvement is anticipated
during the performance of the project.
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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Cost Allocation Plan (CAP) - any of the following:
1. "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.
2. "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.
3. "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)
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)
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)
Cost principles - guidelines to provide that federal awards bear their fair share of cost.
Cost-type contract - a contract or subcontract under a grant in which the contractor or subcontractor is
paid on the basis of the costs it incurs, with or without a fee. (A-102)
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)
Decision official (see "approval official")
Deviation - written approval from the Director, Grants Administration Division for exception(s) from
financial assistance regulations not based on statutory or executive order requirements.
Disadvantaged Business Enterprise (DBE) - a business owned by an individual certified as socially and
economically disadvantaged by the Small Business Administration. 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. Economically disadvantaged individuals are
those socially disadvantaged individuals whose ability to compete in the free enterprise system is 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 the assets and net worth of such socially disadvantaged
individuals.
In determining the economic disadvantage of an Indian Tribe, the Small Business Association shall consider,
where available, information such as the per capita income of members of the tribe excluding judgment
awards, percentage of local Indian population below the poverty level, and Tribe's access to capital markets.
A business is certified as a disadvantaged business enterprise by a state or federal agency. An independent
business concern qualifies when at least 51 percent of the company is owned and controlled by a minority
group member(s).
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A minority group member is an individual who is a citizen of the United States and is one of the following:
1. Native American (American Indian, Eskimo, Aleut, native Hawaiian)
2. Female Americans
3. Black American
4. Hispanic American (with origins from Puerto Rico, Mexico, Cuba, South or Central American)
5. Asian-Pacific American (with origins from Japan, China, the Philippines, Vietnam, Korea, Samoa,
Guam, the U.S. Trust Territories of the Pacific, Northern Marianas, Laos, Cambodia, Taiwan, or the
Indian subcontinent)
6. Disabled Americans
The minority ownership's interest must be real, substantial, and continuing. Such interest is characterized
by:
1. Risk of loss/share of profit commensurate with the proportional ownership
2. Receipt of the customary incidents of ownership, such as compensation (i.e., salary and other
personnel compensation)
A minority owner must have and exercise control over the business decisions. Characteristics of control
include, but are not limited to:
1. Authority to sign bids and contracts
2. Decisions in price negotiations
3. Incurring liabilities for the firm
4. Final staffing decisions
5. Policy making
6. General company management decisions
Only those firms performing a "useful business function according to custom and practice in the industry"
qualify as DBEs. Acting merely as a passive conduit of funds to some other firm where such activity does not
directly contribute to the project does not meet this requirement. The purpose of this approach is to
discourage the use of MBE "fronts" and limit the creation of an artificial supplier and broker marketplace.
The following institutions qualify as disadvantaged business concerns:
1. Historically Black colleges and universities (HBCUs) and colleges and universities having a student
body in which 40 percent of the students are Hispanic
2. Minority institutions (as that term is defined by the Secretary of Education pursuant to the General
Education Provision act (20 U.S.C. section 1221 etseq.)
3. Private and voluntary organizations controlled by individuals who are socially and economically
disadvantaged
(DBE Guide)
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. (A110)
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
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definition of equipment provided that such definition would at least include all equipment defined above.
(A-102 & A-110)
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)
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)
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)
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)
Fair Share or Fair Share Objective - an amount of funds reasonably commensurate with the total project
funds and the availability of qualified disadvantaged business enterprises (DBEs) taking into account
experience on EPA-funded projects and other comparable projects in the area. A fair share objective does
not constitute an absolute requirement, but a commitment on the part of the recipient or prime contractor
to make good faith efforts as defined in Chapter 4, Section C of EPA's Guidance for Utilization of Small,
Minority and Women's Business Enterprises in Procurement Under Assistance Agreements - 6010 (1997
Edition), to use DBEs to achieve the fair share objective. If a recipient chooses to meet EPA's fair share
objectives by relying on its own local DBE program, it may do so. However, it should be made aware that it
would have to defend a legal challenge to the merits of its program based upon such merits, independent of
EPA's fair share objective. (DBE Guide)
Federal awarding agency - the Federal agency that provides an award to the recipient. (A-110)
Federal Funding Accountability and Transparency Act (FFATA) - The Federal Funding Accountability and
Transparency Act (FFATA) was signed on September 26, 2006. The intent is to empower every American
with the ability to hold the government accountable for each spending decision. The end result is to reduce
wasteful spending in the government. The FFATA legislation requires information on federal awards (federal
financial assistance and expenditures) be made available to the public via a single, searchable website,
which is
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)
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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)
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)
Financial Management System - an established set of procedures and principles for maintaining integrity
through accurate records of receipt and expenditure of funds.
Financial Status Report (FSR) - a standard, government-wide 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)
Fund - an independent fiscal and accounting entity with a self-balancing set of accounts: where debits equal
credits, expenditures equal income, and obligations and disbursements balance evenly.
Fund Accounting - An organized way to manage cash and other financial resources, which records financial
resources and obligations in established categories.
Funding period (see also "budget period") - the period of time when Federal funding is available for
obligation by the recipient. (A-110)
Generally Accepted Accounting Principles (GAAP) - meaning specified in generally accepted auditing
standards issued by the American Institute of Certified Public Accountants
Government - a state or local government or a federally recognized Indian tribal government. (A-102)
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)
Grant agreement (see also "assistance agreement') - 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)
Grant Specialist (GS) - 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.
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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)
Indirect cost - 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)
Indirect costs audit - review conducted to determine whether prospective indirect cost rates properly
allocate allowable costs.
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)
Indirect cost rate agreement - an agreement between the recipient and the appropriate Federal agency
which identifies the basis for the indirect cost rate, usually submitted annually. (Region 9)
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)
In-kind contribution - 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. (40 CFR Part 30) NOTE: the assistance amount may also
include an EPA in-kind contribution. (See "cost sharing" and "cash contributions.") (Assistance
Administration Manual)
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)
Integrated Financial Management System (IFMS) - EPA's official automated accounting system
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)
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Interim and final cost audits - reviews conducted to assess the allowability of costs claimed under the
assistance agreement or contract; they ensure compliance with the applicable requirements and award
conditions
Internal Control - a process, affected by an entity's management and other personnel, designed to provide
reasonable assurance regarding the achievement of objectives in the following categories: effectiveness and
efficiency of operations, reliability of financial reporting, and compliance with applicable laws and
regulations
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)
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)
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)
Minority Business Enterprise (MBE) - see Disadvantaged Business Enterprise. (DBE Guide)
Modified Accrual Basis of Accounting - the method EPA recommends for tracking General, Special
Revenue, and Debt Service Funds.
Negotiation - the process of give and take by assistance Project officers and applicants to agree on work
plans And funds available to carry out the work plan activities. (Region 9)
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)
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)
Official file - 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)
OMB - the U.S. Office of Management and Budget (OMB Circular A-102)
OMB A-133 Single Audit - a review of financial and administrative compliance.
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Outcome - the environmental result, effect, or consequence that will occur from carrying out an
environmental program or activity that is related to an environmental or program goal or objective.
Outcomes must be quantitative, and they may not necessarily be achievable during a grant funding period
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 tor 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 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)
Output - an activity or product which the applicant agrees to complete during the budget period
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)
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)
Phoenix Database - an Internet database developed by the Department of commerce's Minority Business
Development Agency (MBDA) that contains information concerning minority-owned businesses. Located
online at http://www.mbda.gov/ (DBE Guide)
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)
Preaward audit- review conducted to evaluate prospective cost or pricing data
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)
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Principal investigator-the person in charge of the project, an official authorized to sign contracts and
reports
Prior approval - documentation/written approval by an authorized official evidencing consent prior to
incurring specific cost. (Combination of OMB Circulars A102 & A-110)
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)
Program element - one of the major groupings of outputs of a continuing environmental program (e.g.,
administration, enforcement, monitoring). (Assistance Administration Manual)
Program income
1. 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 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)
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)
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.
Project narrative (see "work plan/work program")
Project Officer (PO) - 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)
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Project period
1. 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)
Property - unless otherwise stated, real property, equipment, intangible property and debt instruments. (40
CFR Part 35; A-110)
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)
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)
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)
Questioned Cost - A cost that is questioned by the auditor because of an audit finding:
1. Which resulted from a violation or possible violation of a provision of a law, regulation, contract,
grant, cooperative agreement or other agreement or document governing the use of Federal funds,
including funds used for cost sharing (i.e. matching funds)
2. Where the costs, at the time of the audit, are not supported by adequate documentation
3. Where the costs incurred appear unreasonable and do not reflect the actions a prudent person
would take in the circumstances
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)
Recipient
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 private non-profit organizations 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-
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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)
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)
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)
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)
Service contract - a contract that directly engages the time and effort of a contractor whose primary
purpose is to perform an identifiable task rather than to furnish an end item of supply. Some of the areas in
which service contracts are found include advisory and assistance, architectural and engineering services.
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)
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)
Single audit - an audit which includes both the entity's financial statements and federal awards
Six Affirmative Steps - actions that should be taken to assure that DBEs are used on EPA-funded projects
whenever possible. (DBE Guide)
Small award - a grant or cooperative agreement not exceeding the small purchase threshold fixed at 41
U.S.C. 403(ii) (currently $25,000). (OMB Circular A-110)
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Small Business Enterprise (SBE) - any business entity, including its affiliates, that is independently owned
and operated, not dominant in the field of operation in which it is bidding on government contracts, and
qualified as a small business under the criteria and size standards set forth in 13 CFR Part 121.
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)
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)
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 of 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)
Subcontract - Procurement under a contract legally obligating the seller to furnish the supplies or services
and the buyer to pay for them.
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)
Subgrantee - the government or other legal entity to which a subgrant is awarded and which is accountable
to the grantee for the use of the funds provided. The term "subrecipient" as used in this manual is
synonymous with the term "subgrantee". (OMB Circular A-102; 40 CFR Part 31)
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. The term "subrecipient" as used in
this manual is synonymous with the term "subgrantee". (OMB Circular-110)
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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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:
a. 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
b. 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)
System for Award Management (SAM) - is combining eight federal procurement systems and the Catalog
of Federal Domestic Assistance into one new system. SAM is being deployed in phases. In July 30, 2012, it
incorporated the Central Contractor Registry (CCR), Federal Agency Registration (Fedreg), Online
Representations and Certifications Application, and Excluded Parties List System (EPLS). SAM can be
accessed at www.sam.gov.
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:
a. withdrawal of funds awarded on the basis of the grantee's underestimate of the
unobligated balance in a prior period;
b. withdrawal of the unobligated balance as of the expiration of a grant;
c. refusal to extend a grant or award additional funds, to make a competing or noncompeting
continuation, renewal, extension, or supplemental award; or
d. voiding of a grant upon determination that the award was obtained fraudulently, or was
otherwise 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)
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-cancellable commitments made prior
to termination. (Assistance Administration Manual)
Terms and conditions of a grant or subgrant refer to all requirements of the grant or subgrant, whether in
statute, regulations, or the award document. (OMB Circular A-102; 40 CFR Part 31)
Third party in-kind contributions
1. The value of non-cash contributions provided by non-Federal third parties.
2. 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)
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3. 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)
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)
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)
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 & A110; 40 CFR Part 31)
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)
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)
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)
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)
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)
Women-owned Business Enterprise (WBE) - see disadvantaged business enterprise. (DBE Guide)
Working capital advance refers to a procedure whereby funds are advanced to the recipient to cover its
estimated disbursement needs for a given initial period. (OMB Circular A-110)
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Work plan/work programs (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)
Work plan component - a negotiated set or group of work plan commitments established in the grant
agreement. A work plan may have one or more work plan commitments
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Goals and Objectives for
Administrative and Financial Guidance for Assistance Agreements
The essential elements for administration of EPA assistance agreements are listed below. Use the following
goals and objectives as a check list of essential systems, policies, procedures, processes, and documentation
necessary to compliance with EPA assistance agreement regulations.
Goal 1 Establish organizational policies and procedures for EPA Grant management.
Objective 1.1 Assign responsibility for reviewing, approving, and signing applications, awards, and
amendments.
Objective 1.2 Assign responsibility for monitoring and overseeing assistance agreements once received
from EPA.
Objective 1.3 Create an organizational chart to explain any affiliations with nonprofit or for-profit
organizations or entities.
Objective 1.4 Develop a plan for keeping up-to-date on federal regulations, legal decisions, OMB
Circulars, etc.
Objective 1.5 Develop a procedure for seeking written prior approvals for specific revisions, from the
awarding agency that are compatible with 40 CFR 30.25(c) and 40 CFR 31.30.
Objective 1.6 Write policies and procedures for meeting 40 CFR 30.21 and 30.22, 40 CFR 31.20 and 31.21
federal requirements for assistance agreements covering:
1.6.a Personnel records for employees engaged in the award and administration of contracts,
including:
l.S.a.i Qualifications for each position
l.S.a.ii Duties and responsibilities
l.S.a.iii Salary ranges
l.S.a.iv EEO
l.S.a.v Annual performance appraisals
l.S.a.vi Types and levels of fringe benefits
l.S.a.vii Standards of conduct governing duties and responsibilities, including:
l.S.a.viii Disciplinary actions for not adhering to the standards
l.S.a.xi (OMB A 122/2 CFR Part 230, Appendix B, Paragraph 8 and 40 CFR 30.42; OMB A
87/2 CFR Part 225, Appendix B, Section 8 and 40 CFR 31.36(b)(3); OMB A-21/2 CFR
Part 220, Appendix A, section J.10)
l.S.b Time reporting tracked to each project (OMB A 122/2 CFR Part 230, Appendix B, Paragraph
8.m; OMB A 87/2 CFR Part 225, Appendix B, Section 8.h; OMB A-21/2 CFR Part 220,
Appendix A, section J.10)
1.6.c Payroll processing and internal controls (OMB A 122/2 CFR Part 230, Appendix B, Paragraph
8.m; OMB A 87/2 CFR Part 225, Appendix B, Section 8.h; OMB A-21/2 CFR Part 220,
Appendix A, section J.10)
1.6.d Overtime (if allowed) (OMB A-122/2CFR Part 230, Appendix B, paragraph 8.f; OMB A-87/2
CFR Part 225, Appendix B, section 8; OMB A-21/2 CFR 220, Appendix A, section J.10)
1.6.e Vacation and sick leave (if offered by your organization) (OMB A 122/2 CFR Part 230,
Appendix B, paragraph 8g; OMB A 87/2 CFR Part 225, Appendix B, section 8.d; OMB A-21/2
CFR 220, Appendix A Section J.10(f))
1.6.f Compensatory time (if allowed) (OMB A 122/2 CFR Part 230, Appendix B, paragraph 8.d)
l.S.g Equipment and property purchases, including:
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l.S.g.i Cost and price analysis
l.S.g.ii Purchase
l.S.g.iii Use of
l.S.g.vi Inventory and disposition of at the end of the project
l.S.g.v (40 CFR 30.34 and 30.44, 40 CFR 31.31, 31.32, and 31.36(f))
1.6.h Electronic Funds Transfers (EFT) drawdowns from EPA's accounts:
l.S.h.i Personnel authorized to request payment from the federal government
l.S.h.ii Verification that the requests are accurate
l.S.h.iii Verification that drawdown of funds will occur
l.S.h.vi (40 CFR 30.21(b)(5) and 30.22, 40 CFR 31.20(b)(7) and 31.21))
1.6.i Receipt and deposit of advanced payments (40 CFR 30.22(i)(2) and 40 CFR 31.21(c)&(e))
1.6.J Records retention (40 CFR 30.50 and 30.53, 40 CFR 31.42) for at least three years after the
close out or final audit
l.S.k Travel, authorizations, vouchering after the trip and, if required, trip reporting (OMB A
122/2 CFR Part 230, Appendix B, Paragraph 51; OMB A 87/2 CFR Part 225, Appendix B,
Section 43; OMB A-21/2 CFR Part 220, Appendix A, section J.53)
1.6.1 Procurement standards for:
1.6.1.i Supplies, expendable property, and equipment
1.6.1.ii Real property and services
1.6.1.iii Contracting
l.S.l.vi Purchasing
l.S.l.v Consultant agreements
l.S.l.vi Sub-awards or grants (if applicable, especially for monitoring sub-grantees)
l.S.l.vii Other types of awards that transfer federal funds outside of the organization
l.S.l.viii (40 CFR 30.40-30.47, 40 CFR 30.5 and 30.51(a), 40 CFR 31.36, 40 CFR 31.37 and
31.40(a))
1.6.m Provisions for utilizing small businesses, minority owned firms, women's business
enterprises, and labor surplus area firms (where possible) (40 CFR 30.44(b), 40 CFR
31.36(e))
1.6.n Program income:
l.S.n.i Identified
l.S.n.ii Authorized
l.S.n.iii Accounted for
l.S.n.vi Limitations placed on its use
l.S.n.v (40 CFR 30.24, 40 CFR 31.25)
1.6.O Cost sharing, matching and in-kind contributions:
l.S.o.i Identified
l.S.o.ii Accounted for
l.S.o.iii Reported
l.S.o.iv (40 CFR 30.23 and OMB A 122/2 CFR Part 230, Appendix B, paragraph 12; 40 CFR
31.24 and OMB A 87/2 CFR Part 225, Appendix B, section 12; OMB A-21/2 CFR 220,
Appendix A, Section J.15(b))
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Objective 1.7 Document each grant award separately, including:
1.7.a Original application and certifications
(SF424, 424A, et al.)
1.7.b Work plans and/or statement of work
1.7.c Initial award and all amendment documents
1.7.d Request for approvals of scope and/or budget changes
(40 CFR 30.25(b)&(c), 40 CFR 31.30(a)(b)&(c))
1.7.e Financial status reports and reimbursement requests, if applicable (40 CFR 30.52(a)(l), 40
CFR31.41(b))
1.7.f Payment requests backed up by financial records to support the request (40 CFR 30.21(a)
and 30.21(b)(2), 40 CFR 31.20(a)(2))
1.7.g Progress reports (40 CFR 30.51(b), 40 CFR 31.40(b))
1.7.h Contracts / subgrants (40 CFR 30.46 and 30.47, 40 CFR 31.37)
1.7.\ Purchases (40 CFR 30.34 or 40 CFR 31.32 for equipment, 40 CFR 30.35 or 40 CFR 31.33 for
supplies)
1.7.} Consultant agreements (40 CFR 30.27(b) or 31.36Q))
1.7.k Correspondence and approvals, including emails to and from EPA officials
Goal 2 Establish accounting and financial management policies and procedures for EPA grant
management.
Objective 2.A Define accounting policies and procedures.
2.A.I Write an accounting manual for the organization addressing the following practices and
procedures. (40 CFR 30.21(b)(5) and (6) or 40 CFR 31.20)
2.A.2 Follow Generally Accepted Accounting Principles (GAAP) in the accounting and financial
management system. (OMB Circular A 122/2 CFR Part 230, Appendix A, Paragraph A.2.e;
OMB A 87/2 CFR Part 225, Appendix B, Section 8; OMB Circular A-21/2 CFR Part 220,
Appendix A, section J)
2.A.3 Ensure system provides accurate, current, and complete disclosure of the financial results
of each federally-sponsored project or program (i.e., each award is accounted for
separately). (40 CFR 30.21(b)(l) or 31.20(b)(l))
2.A.3.a Produce financial reports in accordance with the requirements of 40 CFR 30.52 or
40 CFR 31.41.
2.A.4 Provide records that identify the source and application of funds for federally-sponsored
activities, such as authorizations, obligations, unliquidated obligations, assets, outlays,
income and interest. (40 CFR 30.21 and 30.22; 40 CFR 31.20, .21, and .22)
2.A.5 Provide effective control over, and accountability for all funds, property, and other assets,
including ensuring that all such assets are used solely for purposes authorized by the
awards. (40 CFR 30.21(b)(3); 40 CFR 31.20(b)(3))
2.A.6 Write policies and procedures to ensure that costs are reasonable, allocable, and allowable.
(40 CFR 30.21(b)(6); 40 CFR 31.20(b)(5); OMB Circular A-122/2 CFR Part 230, Appendix A,
Section A; OMB Circular A-87/2 CFR Part 225, Appendix A, Section C; OMB Circular A 21/2
CFR 220, Appendix A, Section C)
2.A.7 Monitor allowable costs to ensure they are charged to the grant within the specified period.
(40 CFR 30.28, 40 CFR 31.23)
2.A.8 Report outlays or grant project expenditures, with budget amounts for each grant
project/award.
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2.A.8.a Document a comparison of outlays or grant project expenditures, with budget
amounts for each grant project/award. (40 CFR 30.21(b)(4); 40 CFR 31.20(b)(4))
2.A.9 Describe budgetary controls to preclude incurring excess expenditures. (40 CFR 30.21(b)(3)
and(4);40CFR3_.20(b)(4))
2.A.10 Describe the process for reviewing and monitoring project budgets and program plans,
reporting and rectifying deviations that may occur. (40 CFR 30.25(b); 40 CFR 31.20(b)(4) and
31.30)
2.A.11 Audit at least once per year. (40 CFR 30.26(a) or 40 CFR 31.26)
2.A.12 Align audit with OMB Circular A-133, if the organization has expended more than $500,000
in federal funds during the most recent fiscal year. (40 CFR 30.26(a), 40 CFR 31.26(a))
2.A.13 Explain in writing any findings, material weaknesses, or reportable conditions identified in
the A-133 Audit, if applicable.
2.A.13.a Describe in writing any corrective actions taken, if any.
2.A.14 Determine whether or not the organization has an approved indirect cost rate for
reimbursement requests for indirect costs under the grant award. (OMB Circular A-122/2
CFR Part 230, Appendix A, Section C and D; OMB Circular A-87/2 CFR Part 225, Appendix E
or OMB Circular A-21/2 CFR 220, Appendix A, Section G)
2.A.15 Document procedures for drawing grant funds and issuing payments.
2.A.15.a Note that payment requests should be restricted to immediate needs (i.e.,
drawing down funds three to five working days in advance of disbursements.) (40
CFR 30.21(b)(5) and 30.22(b); 40 CFR 31.20(b)(7) and 31.21(b)&(c))
2.A.16 Identify the type of accounting and financial management system (by name if an automated
system is used).
2.A.17 Ensure accounting records are supported by source documentation. (40 CFR 30.21(b)(7); 40
CFR31.20(b)(6))
Objective 2.B Define personnel/timekeeping policies and procedures. (OMB Circular A-122/2 CFR Part
230, Appendix B, section 8; OMB Circular A-87/2 CFR Part 225, Appendix B, section 8 or
OMB Circular A 21/2 CFR 220, Appendix A, section J, paragraph 10)
2.B.I Write policies and procedures for payroll.
2.B.2 Record actual employee hours worked directly on all projects, indirect or administrative
time not charged directly to a project, and leave taken.
2.B.3 Document actual hours worked by employees required to work away from the office.
2.B.4 Match payroll registers and reports with costs for each employee whose compensation is
charged to an assistance agreement.
2.B.5 Ensure timesheets are signed by the individual or supervisor.
Objective 2.C Establish controls for the payroll function.
2.C.I Provide adequate separation of duties.
2.C.2 Ensure equity in salaries and wage rates established, authorized, and approved by the
organization.
2.C.3 Ensure all deductions from employee's salaries are properly authorized by the employee.
2.C.4 Describe how payrolls are distributed.
2.C.5 Proscribe sufficient controls to ensure that payroll checks are distributed to the correct
employee, if checks are distributed manually.
Objective 2.D Establish policies and procedures for travel. (OMB Circular A-122/2 CFR Part 230, Appendix
B, section 51; OMB Circular A-87/2 CFR Part 225, Appendix B, section 43 or OMB Circular A
21/2 CFR 220, Appendix A, section J, paragraph 53)
2.D.I Document travel policies and procedures.
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2.D.2 Describe internal controls to ensure that employees follow the organization's travel policy
(i.e., levels of review prior to authorizing payment and determination that the travel was
associated with the specific grant project).
2.D.3 Describe internal controls to ensure that travel and time reporting support the employee's
activities while on travel.
2.D.4 Explain how the policies and procedures ensure that travel costs are allowable, allocable,
and reasonable.
Objective 2.E Establish policies and procedures for matching, cost sharing, in-kind contributions, and
program income. (40 CFR Part 30.23(a)-(i) and 40 CFR 31.24(a)-(e); 40 CFR 30.24 and 31.25)
2.E.I Document matching, cost sharing, and/or in-kind costs included in any active and/or
anticipated awards.
2.E.2 Document any matching costs from other federal grant(s).
2.E.2.a Authorize matching costs in the terms and conditions of the assistance agreement.
2.E.3 Identify any matching costs in the approved grant project budget.
2.E.4 Track, record, report, and verify any matching costs.
2.E.5 Ensure all matching costs are verifiable from accounting records and valued according to
applicable OMB Circular cost principles.
2.E.5.a (40 CFR Part 30.24 or Part 31.25; OMB Circular A-122/2 CFR Part 230, Appendix B,
paragraphs 8 and 12; OMB Circular A-87/2 CFR Part 225, Appendix B, paragraphs 8
and 12 or OMB Circular A 21/2 CFR 220, Appendix A, section J, paragraph 15)
2.E.6 Record any program income used to satisfy the recipient's contribution for any current
award or added to the funds committed for the project.
2.E.7 Ensure there is a term and condition in the award that permits the use of program income
for match requirements or for adding it to the funds committed to the project.
2.E.8 Deduct program income from the total allowable project cost, if there is no term or
condition in the award.
Objective 2.F Establish policies and procedures for procurement, contracts, and subagreements.
2.F.I Document procurement policies and procedures.
2.F.2 Review all contracts and subagreements under any of the award agreements made under a
grant by a grantee to an eligible subgrantee, subrecipient, or by a subrecipient to a lower
tier subrecipient for:
2.F.2.a Type of financial assistance (e.g., money, property in lieu of money)
2.F.2.b Type of agreement (e.g., contractual legal agreement)
2.F.2.C Assurance that assistance does not include procurement purchases of goods and
services
2.F.3 Verify that contracts were awarded in accordance with the organization's contracting
policy.
2.F.3.a Verify that the organization's contracting policy complies with 40 CFR Part 30.40-
30.48 or Part 31.36 and .37.
2.F.3.a.i Document in the procurement manual a code of conduct that addresses
conflict of interests and disciplinary actions for non-compliance with this code.
(40 CFR 30.42; 40 CFR 31.36(b)(3))
2.F.3.a.ii Provide for competing transactions in a free and open manner. (40 CFR 30.43;
40CFR31.36(c))
2.F.3.a.iii Provide for:
2.F.a.iii.l A review to avoid unnecessary purchases
2.F.a.iii.2 A review of lease vs. purchase alternatives, when appropriate
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2.F.a.iii.3 Conducting solicitations with a clear scope of work and bidder
requirements
2.F.a.iii.4 Conservation of natural resources
2.F.a.iii.5 Utilization of small, minority-owned (MBE), and women-owned
(WBE) business enterprises when possible.
2.F.a.iii.6 (40 CFR 30.44; 40 CFR 31.36(c)(3))
2.F.3.a.iv Require performing and documenting a cost analysis for sole source
procurements. (A cost analysis is the review and evaluation of each element of
cost to determine reasonableness, allocability, and allowability when you do
not have other proposals to compare costs against.) (40 CFR 30.45; 40 CFR
31.36(f))
2.F.3.a.v Require performing and documenting a price analysis for competitive bidding
and small purchase procurement actions. (A price analysis may be
accomplished in various ways, including the comparison of price quotations
submitted, market prices, and similar indicia, together with discounts.) (40 CFR
30.45; 40 CFR 31.36(f))
2.F.3.a.vi Document the basis for all procurement selections, justifying a lack of
competition and basis for award cost and price. (40 CFR 30.46; 40 CFR
31.36(b)(9))
2.F.3.a.vii Provide for the Grantor's pre-award review of the procurement when the
award or contract modification exceeds $100,000, is not competed, or only
one bid is received. (40 CFR 30.44(e); 40 CFR 31.36(g)(2))
2.F.3.a.viii Discuss purchase/agreement/contract cost thresholds (small purchases vs.
major procurements) and personnel required to approve procurements.
2.F.3.a.ix Proscribe that no contract or sub-award will be entered into with parties that
are debarred, suspended, or excluded from federal assistance programs. (40
CFR 30.13; 40 CFR 31.35)
2.F.4 Determine if any of the organization's contracts for grant projects exceed the Federal Small
Purchases threshold ($100,000).
2.F.5 Anticipate an EPA request to review the contract prior to award if any of the organization's
contracts for grant projects exceed the Federal Small Purchases threshold ($100,000).
2.F.6 Incorporate EPA review comments into the organization's policies and procedures for
procurement, contracts, and subagreements.
2.F.7 Use a pre-qualified list of persons, firms, or products to acquire goods and services.
2.F.8 Follow procurement policies to place and update vendors on the list.
2.F.9 Establish an affirmative procurement system for recycled materials and compliance with
environmental statues. (40 CFR 30.16; 40 CFR 31.13)
2.F.10 Describe internal control processes to ensure that only required goods and services are
acquired in the quantities needed. (40 CFR 30.44(a)(l); 40 CFR 31.36(b)(4))
2.F.11 Describe internal control processes to ensure that only acceptable goods and services are
paid for by the accounting/finance department. (40 CFR 30.21(b)(6); 40 CFR 31.20(b)(5))
2.F.12 Create guidelines for documenting contract files.
2.F.13 Determine if contracts can be awarded to consultants under the assistance agreement.
2.F.14 Describe internal control processes for consulting agreements to ensure that the
organization does not charge EPA assistance agreements more than the authorized direct
salary cap.
2.F.15 Specify in the consultant agreements the:
2.F.15.a Services to be provided
2.F.15.b Engagement duration
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2.F.15.C Reporting requirements
2.F.15.d Work location
2.F.15.e Pay rates, including base rate, fringe benefits, and overhead
Objective 2.G Establish policies and procedures to ensure that small businesses, minority owned firms,
women's business enterprises, and labor surplus area firms are utilized whenever possible.
(40 CFR 30.44(b); 40 CFR 31.36(e))
2.G.I Submit timely reports on business activities with Disadvantaged Business Enterprises (DBE).
Objective 2.H Establish policies and procedures for property management. (40 CFR 30.30-30.37; 40 CFR
31.31 and 40 CFR 31.32)
2.H.I Document policies and procedures for property management.
2.H.2 Record capital equipment purchased on any active assistance agreements.
2.H.2.a Equipment, under the Federal Guidelines, is equipment that is considered tangible
items with a useful life greater than one year and greater than $5,000 in value.
Grantees may have limits that are different than the Federal Guidelines as long as
the limits are not greater.
2.H.3 Describe the inventory control system. (40 CFR 30.34; 40 CFR 31.32)
2.H.4 Maintain property records that identify equipment purchased, either entirely or partially,
with federal funds. (40 CFR 30.34(f); 40 CFR 31.32(d))
2.H.5 Perform a property inventory at least once every two years.
2.H.6 Maintain records of property dispositions.
Objective 2.1 Establish policies and procedures for internal controls.
2.1.1 Document policies and procedures to ensure compliance with the cash management
requirements in 40 CFR Part 30.21(b)(3) and 40 CFR 31.20(b)(3).
2.l.l.a Identify an internal auditor, audit staff, or someone on the Board of Directors to provide for
an independent review of the accounting and financial management process, cash receipts
and payments, and safeguarding of assets.
2.1.2 Document policies and procedures to ensure compliance with closing out assistance awards
after the performance and budget periods. (40 CFR Part 30.71 and 40 CFR 31.50)
2.1.3 Describe the process to ensure compliance with programmatic term and conditions in the
following areas:
2.1.3.a Submitting programmatic progress reports
2.l.3.b Establishing and obtaining approval of a quality action plan, if required
2.I.3.C Establishing a process to track, monitor, and report on environmental results
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Minority Business Enterprise and Women Business Enterprise (MBE/WBE)
See DBE Certification Fact Sheet
See DBE Reporting Fact Sheet
See DBE Utilization Form
d Insular Areas Administrative and financial Guidance for Assistance Agreements
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Negotiated Fair Share Objectives
http://www.epa.gov/osbp/dbe fair.htm
Region 1
Fair Share Goals Set as of September 5, 2012
Region 1
Recipient
Connecticut
Maine
Massachusetts
New Hampshire
Rhode Island
Vermont
Combined
(Includes Construction, Goods/
Equipment and Services)
Combined
(Includes Construction, Goods/
Equipment and Services)
•
Combined
(Includes Construction, Goods/
Equipment and Services)
^^^H
Combined
(Includes Goods/Equipment
and Services)
Construction
Supplies
Services
Goods/Equipment
Combined
Construction
Supplies
Services
Goods/Equipment
Combined
3.00%
1.11%
3.40%
5.00%
4.34%
3.80%
1.45% 6.62%
Good thru FY-14
Proposed goals have not been
submitted by the state
1.00%
1.20%
1.20%
2.00%
5.00%
3.80%
1.70%
8.00%
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Region 2
Fair Share Goals Set October 1, 2006
Region 2
MBE %
New Jersey
New York Upstate
Construction
Supplies
Services
Goods/Equipment
Combined
Construction
Supplies
Services
Goods/Equipment
Combined
7.00%
6.00%
8.80%
8.80%
8.80%
3.00%
6.00%
8.80%
8.80%
8.80%
New York City
Construction
Supplies
Services
Goods/Equipment
Combined
21.50%
18.80%
18.80%
18.80%
13.70%
20.50%
20.50%
20.50%
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Region 3
FY'10 Fair Share Negotiated Goals
Region 3
Recipient
Delaware
Department of Agriculture
Delaware
NR&Envir. Control
Maryland
Alliance for the Cheasapeake
Bay, Inc,
Maryland
Interstate Comm. Potomac
River Basin
Maryland
Department of Environment
Maryland
Department of NR
DC
Water Authority
Construction
Supplies
Services
Goods/Equipment
Combined
Construction
Supplies
Services
Goods/Equipment
Combined
Construction
Supplies
Services
Goods/Equipment
Combined
2.49%
2.41 %
4.85%
11.69%
249%
2.41%
4.85%
11.69%
32.00%
28.00%
3.69%
2.41%
3.62%
1262%
369%
2.41%
3.62%
1262%
Construction
Supplies
Services
Goods/Equipment
Combined
Construction
Supplies
Services
Goods/Equipment
Combined
1 1 .00%
11.00%
12.00%
11.00%
13.04%
2.60%
1 1 00%
11.00%
10.00%
11 00%
913%
714%
Construction
Supplies
Services
Goods/Equipment
Combined
Construction
Supplies
Services
Goods/Equipment
Combined
11.00%
11.00%
12.00%
11.00%
7.00%
7.00%
7.00%
11.00%
11.00%
10.00%
11 00%
10.00%
10.00%
10.00%
6.00%
400%
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FY'10 Fair Share Negotiated Goals
Region 3
Recipient
Pennsylvania
Allegheny County Health
Department (BAPC)
Construction
Supplies
Services
Goods/Equipment
Combined
2.92%
1.30%
2.26%
3.50%
17.57%
17.21%
19.89%
18.07%
Pennsylvania
Department of Health
(BAFS)
Pennsylvania
Susquehanna River Basin
Commission
Construction
Supplies
Services
Goods/Equipment
Combined
Construction
Supplies
Services
Goods/Equipment
Combined
2.00%
5.00%
5.00%
6.00%
24.20%
24.20%
Pennsylvania
Department of Environmental
Protection
Construction
Supplies
Services
Goods/Equipment
Combined
2.92%
1.30%
2.26%
3.50%
17.57%
1721%
1989%
18.07%
Pennsylvania
Alliance for Chesapeake Bay,
Inc.
Construction
Supplies
Services
Goods/Equipment
Combined
2.92%
1,30%
2.26%
3.50%
17.57%
17.21%
19.89%
1807%
Virginia
Department of Conservation
& Recreation
Construction
Supplies
Services
Goods/Equipment
Combined
4.10%
0.80%
2.60%
0.60%
2,50%
1.30%
1.60%
1.20%
Virginia
Department of Enviro. Quality
Construction
Supplies
Services
Goods/Equipment
Combined
4.10%
0.80%
2,60%
060%
2,50%
1.30%
1.60%
120%
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FY'10 Fair Share Negotiated Goals
Region 3
Recipient
Virginia
Department of Health
Construction
Supplies
Services
Goods/Equipment
Combined
4.10%
0.80%
2.60%
0.60%
2.50%
1.30%
1.60%
1.20%
Virginia
Institute of Marine Science
Virginia
Alliance for Chesapeake Bay,
Inc.
Construction
Supplies
Services
Goods/Equipment
Combined
Construction
Supplies
Services
Goods/Equipment
Combined
4.10%
0.80%
2.60%
0.60%
4.10%
0.30%
2.60%
0.60%
250%
1 .30%
1 .60%
1 20%
250%
1.30%
1 .60%
1.20%
West Virginia
Department of Enviro.
Protection
West Virginia
Department of Health &
HS/Office of Enviro. Health
Services
Construction
Supplies
Services
Goods/Equipment
Combined
Construction
Supplies
Services
Goods/Equipment
Combined
0.16%
0.25%
0.70%
0.28%
2.00%
1.70%
6.57%
2.59%
0.64%
5.27%
17.76%
5.95%
7.55%
39.00%
45.93%
25.83%
EPA Tribal, U.S. Territories and Insular Areas Administrative and Financial Guidance for Assistance Agreements
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Region 4
Fair Share Goals for Fiscal Years 2011-2013
Region 4
Recipient
Alabama
ADEM
Cornmodiles (Supplies)
Contractual (Services)
Equipment
Construction
MBE%
4,00%
8.00%
5.00%
5.00%
WBE%
11.00%
30.00%
20.00%
17.00%
Florida
SRF Construction
FDEP
Construction
9.00%
300%
^^^^^^m
Georgia
GEFA
Supplies
Services
Equipment
Construction
4.00%
4.00%
4.00%
4.00%
4.00%
4,00%
4.00%
4.00%
Kentucky
KDEP
Supplies
Services
Equipment
Construction
3.40%
10.80%
1.10%
4.10%
6.30%
18.60%
1.20%
4.60%
Mississippi
SRF Construction
MSDH
Construction
3.10%
1.10%
Non SRF Programs
MSDH
North Carolina
NCDENR
Supplies
Services
Equipment
Supplies
Services
Equipment
Construction
Professional Services
770%
1.10%
6.80%
7.00%
7.00%
7.00%
8,00%
4.00%
3.40%
2.20%
5.10%
9.00%
9.00%
9.00%
5.00%
10.00%
South Carolina
SCDHEC
Supplies
Services
Equipment
Construction
9.00%
11.00%
10.00%
3.60%
9.00%
11,00%
10.00%
2.40%
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Fair Share Goals for Fiscal Years 2012-2013
Region 4
Recipient
Tennessee
TDEC
Supplies
Services
Equipment
Construction
MBE%
5.20%
5.20%
5.20%
2.60%
5.20%
5.20%
5.20%
2.60%
EPA Tribal, U.S. Territories and Insular Areas Administrative and Financial Guidance for Assistance Agreements
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Region 5
Fair Share Goals for FY1 1 - FY1! 4
Region 5
Recipient
Illinois
IEPA*
Illinois
Metro Water'
Indiana
IDEM
Michigan
MDNRE - Wayne City
Minnesota
MPCA"
Minnesota
MPFA
Ohio
Wisconsin
WDNR1
Construction
Supplies
Services
Goods/Equipment
Combined
Mechanical
Electrical
Construction
Hauling Services
Excavation Services
Concrete Services
Construction
Professional Services
Supplies and Equipment
Construction
Supplies
Services
Goods/Equipment
Combined
Construction
Supplies
Services
Goods/Equipment
Combined
5.00%
13.00%
11.00%
20.00%
19.00%
15.00%
20.00%
7.00%
8.00%
4.00%
2.00%
2.00%
Construction
Supplies
Services
Goods/Equipment
Combined
Construction
Supplies
Services
Goods/Equipment
Combined
Construction
Supplies
Services
Goods/Equipment
Combined
3.50%
2.00%
0.06%
3.00%
12.00%
6.00%
8.00%
10.00%
13.00%
8.00%
9.00%
5.00%
8.00%
9.00%
6.00%
2.00%
5.00%
1.30%
0.05%
6.00%
* Goals have not been negotiated; goal are subject to change.
** Goals based upon disparity study; therefore, goals in place from FY'll - FY'20
EPA Tribal, U.S. Territories and Insular Areas Administrative and Financial Guidance for Assistance Agreements
Last Updated September 2013 page 185 of 519
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Region 6
Fair Share Goals as of July 16, 2013
"Fair Share Goals for all Recipients with State, Unless Specifically Idenified
Regions
Recipient
'Arkansas
Department of Environ mental
Quality
'Louisiana
Department of Environmental
Quality
'New Mexico
Environmental Department
New Mexico
Pueblo tie San lldefonso
'Oklahoma
Department of
l tivu..inn.-in,.I Quality
Construction
Supplies
Services
Goods/Equipment
FY'14-FY'17 Availability Analysis
•^•P
Construction
Supplies
Services
Goods/Equipment
FYVI-ma Availability Analysis
^^K
Construction
Supplies
Services
Goods/Equipment
FY'12-FY'14 Availability Analysis
^m
Construction
Supplies
Services
Goods/Equipment
FY'12-FY'14 Availability Analysis
Construction
Supplies
Services
Goods/Equipment
F¥'12-FY'14 Availability
MBE%
8.30%
2.60%
13.10%
2.80%
2340%
1,40%
17.10%
1.50%
41.03%
26.51%
38.78%
36,69%
41,03%
25,51%
38.78%
36.69%
11.52%
12.19%
1429%
12,13%
WBE %
11.00%
8.70%
20.00%
1.10%
11.90%
1.40%
12.40%
1.40%
6.47%
35.30%
40.00%
30.65%
6.47%
35.30%
40.00%
30.65%
7.61 %
21.24%
26.51 %
12,28%
'Oklahoma
Water Resources Board
'Oklahoma
Cherokee Nation
Construction
Supplies
Services
Goods/Equipment
FY'12-FY'14 Availability Analysis
^^^^^gjjg^g^B
Construction
Supplies
Services
Goods/Equipment
FY'12-FV14 Availability Analysis
13,94%
7,48%
14.29%
9.13%
10.60%
5.06%
12,66%
8,49%
6.92%
0.00%
26.51 %
19.90%
5.84%
26.29%
24.59%
11.10%
EPA Tribal, U.S. Territories and Insular Areas Administrative and Financial Guidance for Assistance Agreements
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Recipient
'Oklahoma
ChiaPawTribe of Oklahoma
Board
'Texas
Commission an
Eiiviionmenlakl Quality
Texas
Wdtei Development Board
Texas
City of Houston
•BEX WBE %
Construction 11.52% 7.61%
Supplies 12.19% 21.24%
Services 14.29% 26.51%
Goods/Equipment 12.13% 12.28%
FY11-FV13 Availability Analysis
Construction 7.34% 10.60%
Supplies 19.37% 14.15%
Services 12.98% 23.70%
Goods/Equipment 19,57% 19,64%
FY12-FY'14 Availability Analysis
Construction 12.94% 8.72%
Supplies 9.58% 9.34%
Services 10.84% 5.72%
Goods/Equip ment 7.12% 5.39%
FY12-FY'14 Availability Analysis
Construction 19.00% 5.00%
Supplies 10.00% 4,00%
Services 17,00% 6.00%
Goods/Equipment 10.00% 4.00%
FYT2-FY'14 Availability Analysis
EPA Tribal, U.S. Territories and Insular Areas Administrative and Financial Guidance for Assistance Agreements
Last Updated September 2013 page 187 of 519
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Region 7
Fair Share Goals Set October 1. 2006
Region 7
Recipient
Iowa
Kansas
Missouri
^^^^^^M
Nebraska
J^^^H
4 State Average
Construction
Supplies
Services
Goods/Equipment
Average
Construction
Supplies
Services
Goods/Equipment
Average
Construction
Supplies
Services
Goods/Equipment
Average
^^^^^m
^^^^H
Construction
Supplies
Services
Goods/Equipment
Average
^^^^•^•H^^^^^^^^^H
^^^^1
Construction
Supplies
Services
Goods/Equipment
Average
MBE %
1.70%
0.60%
2.50%
2.50%
1.80%
4.10%
0.80%
5.60%
1 .20%
2.90%
10.00%
10.00%
10.00%
10.00%
10.00%
^^^^H
6.00%
4.10%
5.00%
6.00%
5.50%
^^^^^^^•M
^•^^H
5.50%
3.90%
5.80%
4.90%
5.00%
WBE%
2.20%
5.60%
11.30%
10.40%
7.40%
6.90%
4.10%
35.00%
3.90%
12.50%
5.00%
5.00%
5.00%
5.00%
5.00%
8.00%
12.00%
1 1 .00%
1 1 .00%
10.50%
5.50%
6.70%
15.60%
7.60%
8.80%
•
EPA Tribal, U.S. Territories and Insular Areas Administrative and Financial Guidance for Assistance Agreements
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Region 8
Fair Share Goals for Fiscal Year 2011-2013
Region 8
Recipient
Colorado
Montana
Construction
Supplies
Services
Equipment
Combined
Construction
Supplies
Services
Equipment
Combined
MBE%
6.10%
6.10%
6.10%
6.10%
2.00%
2.00%
2.00%
2.00%
WBE %
6.60%
6.60%
6.60%
6.60%
I
3.00%
3.00%
3.00%
3.00%
North Dakota
Construction
Supplies
Services
/Equipment
Combined
2.00%
2.00%
2.00%
2.00%
3.00%
3.00%
3.00%
3.00%
South Dakota
Construction
Supplies
Services
Equipment
Combined
1.00%
1.00%
1.00%
0.00%
4.00%
3.00%
6.00%
5.00%
Utah
Construction
Supplies
Services
Equipment
Combined
4.00%
0.25%
0.50%
0.25%
2.00%
0.25%
0.50%
0.25%
Wyoming
Construction
Supplies
Services
Equipment
Combined
1.50%
1.00%
1.00%
2.50%
2.50%
2.50%
1.50%
5.00%
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Region 9
MBEAVBE Fair Share Goals Chart
State Agency
Nevada Department of Conservation and Natural
Resources (Division of Enviromnmtal Protection)
Nevada Department of Agriculture
Nevada Division of Wildlife
Nevada State Health Division
Las Vegas Paute Tribe
Yenngton Paiute Tribe
Procurement
Category
Construction
Equipment
Services
Supplies
ApprovedFY2010-12
M6E Goals
12%
11%
7%
13 %
Approved FY 2010-U
WBE Goals
10%
23%
25%
28%
Reused laid Approved MBEAVBE Fair Share goals (Effective 12 25 11)
S tare Agai ty (Pr ocurement
California State Water Resources Conn'ol Board
California Department of Pesticide Regulation
Cali forma Stale Coastal Conservancy
California Department of Conservation (Oil & Gas)
California Natural Resources Agency
California Department of Toxic Substances Control
California Air Resources Board
California Dept of Water Resources
California Environmental Protection Agency
California Department of Fish and Game
Grindstone Indian Ranch en a
Morongo Band of Mission Indians
Categories
Construction
Equipment
Services
Supplies
Approved FY 2012- 14
MBE Goals
2%
1%
1%
1%
ApprovedFY2012-14
WBE Goals
1%
1%
1%
1%
Revised mid Approved MBEAVBE Fair Share goals (Effective 12 25 211)
State Agency Procurement
Category
Califoiiua Department of Public Health (CADPH) Construction
Equipment
Services
Supplies
Approved FY 2012-14
MBE Goals
11%
2%
4%
2%
Approved FY 2012-14
WBE Goals
1%
2%
2%
1%
State Agency
Arizona Department of Environmental Quality
Arizona Dep artment of Agn culture
Arizona Structural Pest Control Commission
Arizona Radiatt on Regulatory Agency
Arizona Water Infrastructure Authority
Gil a River Indian Community
Procurement Approved FY 2010-12 Approved FY 2010-12
Category MBE Goals WBE Goals
Construction
Equipment
[Services
Suppli es
15 %
14 %
15%
15%
7 %
20%
32%
31%
EPA Tribal, U.S. Territories and Insular Areas Administrative and Financial Guidance for Assistance Agreements
Last Updated September 2013 page 190 of 519
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Revised said Approved MBE WEE Fab' Shore goals (Effective 12 23 09)
Shi [ir A"mcy
!
Hawaii Dt]>.ti tinait of Hwhli
Hawaii Department of Agriculture
HE D«jit *f Buaness, £«iwrrat Devd &Towism
Hawai Dept. of Laid aid Natural Resources
(Dm son of Forestry &WU<8ife]
l'i DI ui niinir
CategoiY
CwiSbuchon
Eqispmcnt
Strnces
£upp-l]$J
FV :mu 12
MBEG .••! Eua «ka, • ' Uili.i KM
Prwirtmrt*
C'atsgoiy
^HidttudiQn
EcjuipmaQt
Services
Jupjiltej
AppinvMl KVaUJ 0
MBE C
-------
Region 10
Fair Share Goals for Fiscal Year 2011 -2013
Region 10
Recipient
Alaska
Department of Environmental
Conservation (ADEC)
Idaho
IDEQ
Idaho
Department of Agriculture
(Using IDEQ's Goals)
Idaho
Department of Water
(Using IDEQ's Goals)
Oregon
Department of Envlro. Quality
(ODEQ)
Oregon
Department of Agriculture
Oregon
Department of Health
(Using ODEQ's goals)
CWSRF
DWSRF
Services
Equipment
Supplies
CWSRF Supplies
CWSRF Services
CWSRF Construction
CWSRF Equipment
Equipment
Services
Supplies
Construction
Supplies
Services
Equipment
Combined
CWSRF Construction
CWSRF Supplies
CWSRF Services
CWSRF Equipment
Equipment
Serices
Supplies
CWSRF Construction
CWSRF Services
DWSRF Construction
DWSRF Services
Serives
Supplies
Equipment
Supplies
Services
Equipment
Combined
CWSRF Construction
CWSRF Services
DWSRF Construction
DWSRF Services
Serives
Supplies
Equipment
4.58%
4.58%
3.22%
2.04%
0.70%
1.20%
2.40%
0.10%
0.10%
1.20%
0.70%
0.70%
1.20%
0.10%
2.40%
0.70%
1.20%
0.10%
1.20%
0.70%
0.10%
1.98%
2.78%
1.98%
2.78%
1.69%
0.31%
1.71%
3.83%
3.83%
0.14%
1.98%
2.78%
1.98%
2.78%
1.69%
0.31%
1.71%
2.04%
2.04%
2.54%
1,29%
1.40%
1.80%
1.60%
0.30%
0.30%
1.80%
1.40%
1.40%
1.80%
0.30%
1.60%
1.40%
1.80%
0,30%
1.80%
1.40%
0.30%
1,85%
5.97%
1.85%
5.97%
4.48%
0.63%
2.56%
3.83%
3.83%
0.24%
1.85%
5.97%
1.85%
5.97%
4.48%
0.63%
2.56%
EPA Tribal, U.S. Territories and Insular Areas Administrative and Financial Guidance for Assistance Agreements
Last Updated September 2013 page 192 of 519
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Fair Share Goals for Fiscal Year 2011 -2013
Region 10
Washington
Department of Agriculture
(Using 2007 NO CHARGE)
Washington
Department of Ecology
(Using 2007 NO CHARGE)
Construction
Supplies
Services
Equipment
Combined
Co nst ruction
Services
Equipment
Supplies
8.00%
10.00%
8.00%
10.00%
10.00%
8.00%
8.00%
4.00%
4.00%
4.00%
6.00%
4.00%
4.00%
4.00%
Washington
Department of Health
(Using 2007 NO CHARGE)
Construction
Supplies
Services
Equipment
10.00%
8.00%
10.00%
8.00%
6.00%
4.00%
4.00%
4.00%
EPA Tribal, U.S. Territories and Insular Areas Administrative and Financial Guidance for Assistance Agreements
Last Updated September 2013 page 193 of 519
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Office of Management and Budget
http://www.whitehouse.gov/sites/default/files/omb/assets/agencyinformation circulars pdf/a87 2004.pdf
Title 2: Grants and Agreements, Part 225—Cost Principles for State, Local and Indian
Tribal Governments (Revised 05/10/04)
TO THE HEADS OF EXECUTIVE DEPARTMENTS AND ESTABLISHMENTS
SUBJECT: Cost Principles for State, Local, and Indian Tribal Governments
1. This Circular establishes principles and standards for determining costs for Federal awards
carried out through grants, cost reimbursement contracts, and other agreements with State and local
governments and federally recognized Indian tribal governments (governmental units).
2. Authority. This Circular is issued under the authority of the Budget and Accounting Act of 1921, as
amended; the Budget and Accounting Procedures Act of 1950, as amended; the Chief Financial Officers Act
of 1990; Reorganization Plan No. 2 of 1970; and Executive Order No. 11541 ("Prescribing the Duties of the
Office of Management and Budget and the Domestic Policy Council in the Executive Office of the
President").
3. Background. As part of the government-wide grant streamlining effort under P.L. 106-107, Federal
Financial Award Management Improvement Act of 1999, OMB led an interagency workgroup to simplify
and make consistent, to the extent feasible, the various rules used to award Federal grants. An interagency
task force was established in 2001 to review existing cost principles for Federal awards to State, local, and
Indian tribal governments; Colleges and Universities; and Non-Profit organizations. The task force studied
Selected Items of Cost in each of the three cost principles to determine which items of costs could be stated
consistently and/or more clearly. A proposed revised Circular reflecting the results of those efforts was issued
on August 12, 2002 at 67 FR 52558. Extensive comments on the proposed revisions, discussions with interest
groups, and related developments were considered in developing this revision.
4. Rescissions. This Circular rescinds and supersedes Circular A 87, as amended, issued May 4, 1995.
5. Policy. This Circular establishes principles and standards to provide a uniform approach for determining
costs and to promote effective program delivery, efficiency, and better relationships between governmental
units and the Federal Government. The principles are for determining allowable costs only. They are not
intended to identify the circumstances or to dictate the extent of Federal and governmental unit participation
in the financing of a particular Federal award. Provision for profit or other increment above cost is outside the
scope of this Circular.
6. Definitions. Definitions of key terms used in this Circular are contained in Attachment A, Section B.
7. Action. Agencies responsible for administering programs that involve cost reimbursement
contracts, grants, and other agreements with governmental units shall issue regulations to implement the
provisions of this Circular and its Attachments.
8. The Office of Management and Budget (OMB) will review agency regulations and
implementation of this Circular, and will provide policy interpretations and assistance to insure effective and
efficient implementation. Any exceptions will be subject to approval by OMB. Exceptions will only be made
in particular cases where adequate justification is presented.
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9. Further information concerning this Circular may be obtained by contacting the
Office of Federal Financial Management, Financial Standards and Reporting Branch, Office of Management
and Budget, Washington, DC 20503, telephone 202 395 3993.
10. OMB Circular A 87 will have a policy review three years from the date of issuance.
11. Effective Date. This Circular is effective as follows:
- Except as otherwise provided herein, these rules are effective June 9, 2004.
Attachment A General Principles for Determining Allowable Costs
Attachment B Selected Items of Cost
Attachment C State/Local Wide Central Service Cost Allocation Plans
Attachment D Public Assistance Cost Allocation Plans
Attachment E State and Local Indirect Cost Rate Proposals
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ATTACHMENT A
Circular No. A 87
GENERAL PRINCIPLES FOR DETERMININGALLOWABLE COSTS
TABLE OF CONTENTS
A. Purpose and Scope
1. Objectives
2. Policy guides
3. Application
B. Definitions
1. Approval or authorization of the awarding or cognizant Federal agency
2. Award
3. Awarding agency
4. Central service cost allocation plan
5. Claim
6. Cognizant agency
7. Common rule
8. Contract
9. Cost
10. Cost allocation plan
11. Cost objective
12. Federally recognized Indian tribal government
13. Governmental unit
14. Grantee department or agency
15. Indirect cost rate proposal
16. Local government
17. Public assistance cost allocation plan
18. State
C. Basic Guidelines
1. Factors affecting allowability of costs
2. Reasonable costs
3. Allocable costs
4. Applicable credits
D. Composition of Cost
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1. Total cost
2. Classification of costs
E. Direct Costs
1. General
2. Application
3. Minor items
F. Indirect Costs
1. General
2. Cost allocation plans and indirect cost proposals
3. Limitation on indirect or administrative costs
G. Interagency Services
H. Required Certifications
A.
1. Objectives. This Attachment establishes principles for determining the allowable costs incurred by State,
local, and federally recognized Indian tribal governments (governmental units) under grants, cost
reimbursement contracts, and other agreements with the Federal Government (collectively referred to in this
Circular as "Federal awards"). The principles are for the purpose of cost determination and are not intended
to identify the circumstances or dictate the extent of Federal or governmental unit participation in the
financing of a particular program or project. The principles are designed to provide that Federal awards bear
their fair share of cost recognized under these principles except where restricted or prohibited by law.
Provision for profit or other increment above cost is outside the scope of this Circular.
2. Policy guides.
a. The application of these principles is based on the fundamental premises that:
(1) Governmental units are responsible for the efficient and effective administration of Federal
awards through the application of sound management practices.
(2) Governmental units assume responsibility for administering Federal funds in a manner consistent
with underlying agreements, program objectives, and the terms and conditions of the Federal award.
(3) Each governmental unit, in recognition of its own unique combination of staff, facilities, and
experience, will have the primary responsibility for employing whatever form of organization and
management techniques may be necessary to assure proper and efficient administration of Federal
awards.
b. Federal agencies should work with States or localities which wish to test alternative mechanisms for
paying costs for administering Federal programs. The Office of Management and Budget (OMB)
encourages Federal agencies to test fee for service alternatives as a replacement for current cost
reimbursement payment methods in response to the National Performance Review's (NPR)
recommendation. The NPR recommended the fee for service approach to reduce the burden
associated with maintaining systems for charging administrative costs to Federal programs and
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preparing and approving cost allocation plans. This approach should also increase incentives for
administrative efficiencies and improve outcomes.
3. Application.
a. These principles will be applied by all Federal agencies in determining costs incurred by
governmental units under Federal awards (including subawards) except those with (1) publicly
financed educational institutions subject to OMB Circular A 21, "Cost Principles for Educational
Institutions," and (2) programs administered by publicly owned hospitals and other providers of
medical care that are subject to requirements promulgated by the sponsoring Federal agencies.
However, this Circular does apply to all central service and department/agency costs that are
allocated or billed to those educational institutions, hospitals, and other providers of medical care or
services by other State and local government departments and agencies.
b. All subawards are subject to those Federal cost principles applicable to the particular organization
concerned. Thus, if a subaward is to a governmental unit (other than a college, university or hospital),
this Circular shall apply; if a subaward is to a commercial organization, the cost principles applicable
to commercial organizations shall apply; if a subaward is to a college or university, Circular A 21
shall apply; if a subaward is to a hospital, the cost principles used by the Federal awarding agency for
awards to hospitals shall apply, subject to the provisions of subsection A.S.a. of this Attachment; if a
subaward is to some other non profit organization, Circular A 122, "Cost Principles for Non Profit
Organizations," shall apply.
c. These principles shall be used as a guide in the pricing of fixed price arrangements where costs are
used in determining the appropriate price.
d. Where a Federal contract awarded to a governmental unit incorporates a Cost Accounting Standards
(CAS) clause, the requirements of that clause shall apply. In such cases, the governmental unit and
the cognizant Federal agency shall establish an appropriate advance agreement on how the
governmental unit will comply with applicable CAS requirements when estimating, accumulating
and reporting costs under CAS covered contracts. The agreement shall indicate that OMB Circular A
87 requirements will be applied to other Federal awards. In all cases, only one set of records needs to
be maintained by the governmental unit.
e. Conditional exemptions.
(1) OMB authorizes conditional exemption from OMB administrative requirements and cost
principles circulars for certain Federal programs with statutorily authorized consolidated planning
and consolidated administrative funding, that are identified by a Federal agency and approved by the
head of the Executive department or establishment. A Federal agency shall consult with OMB during
its consideration of whether to grant such an exemption.
(2) To promote efficiency in State and local program administration, when Federal non entitlement
programs with common purposes have specific statutorily authorized consolidated planning and
consolidated administrative funding and where most of the State agency's resources come from non
Federal sources, Federal agencies may exempt these covered State administered, non entitlement
grant programs from certain OMB grants management requirements. The exemptions would be from
all but the allocability of costs provisions of OMB Circulars A 87 (Attachment A, subsection C.3),
"Cost Principles for State, Local, and Indian Tribal Governments," A 21 (Section C, subpart 4), "Cost
Principles for Educational Institutions," and A 122 (Attachment A, subsection A.4), "Cost Principles
for Non Profit Organizations," and from all of the administrative requirements provisions of OMB
Circular A 110, "Uniform Administrative Requirements for Grants and Agreements with Institutions
of Higher Education, Hospitals, and Other Non Profit Organizations," and the agencies' grants
EPA Tribal, U.S. Territories Insular Areas Administrative and Financial Guidance for Assistance Agreements
Last September 2013 19S of 519
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management common rule.
(3) When a Federal agency provides this flexibility, as a prerequisite to a State's exercising this
option, a State must adopt its own written fiscal and administrative requirements for expending and
accounting for all funds, which are consistent with the provisions of OMB Circular A 87, and extend
such policies to all subrecipients. These fiscal and administrative requirements must be sufficiently
specific to ensure that: funds are used in compliance with all applicable Federal statutory and
regulatory provisions, costs are reasonable and necessary for operating these programs, and funds are
not be used for general expenses required to carry out other responsibilities of a State or its
subrecipients.
B.
1. "Approval or authorization of the awarding or cognizant Federal agency" means documentation evidencing
consent prior to incurring a specific cost. If such costs are specifically identified in a Federal award
document, approval of the document constitutes approval of the costs. If the costs are covered by a State/local
wide cost allocation plan or an indirect cost proposal, approval of the plan constitutes the approval.
2. "Award" means grants, cost reimbursement contracts and other agreements between a State, local and
Indian tribal government and the Federal Government.
3. "Awarding agency" means (a) with respect to a grant, cooperative agreement, or cost reimbursement
contract, the Federal agency, and (b) with respect to a subaward, the party that awarded the subaward.
4. "Central service cost allocation plan" means the documentation identifying, accumulating, and allocating
or developing billing rates based on the allowable costs of services provided by a governmental unit on a
centralized basis to its departments and agencies. The costs of these services may be allocated or billed to
users.
5. "Claim" means a written demand or written assertion by the governmental unit or grantor seeking, as a
matter of right, the payment of money in a sum certain, the adjustment or interpretation of award terms, or
other relief arising under or relating to the award. A voucher, invoice or other routine request for payment
that is not a dispute when submitted is not a claim. Appeals, such as those filed by a governmental unit in
response to questioned audit costs, are not considered claims until a final management decision is made by
the Federal awarding agency.
6. "Cognizant agency" means the Federal agency responsible for reviewing, negotiating, and approving cost
allocation plans or indirect cost proposals developed under this Circular on behalf of all Federal agencies.
OMB publishes a listing of cognizant agencies.
7. "Common Rule" means the "Uniform Administrative Requirements for Grants and Cooperative
Agreements to State and Local Governments; Final Rule" originally issued at 53 FR 8034 8103 (March 11,
1988). Other common rules will be referred to by their specific titles.
8. "Contract" means a mutually binding legal relationship obligating the seller to furnish the supplies or
services (including construction) and the buyer to pay for them. It includes all types of commitments that
obligate the government to an expenditure of appropriated funds and that, except as otherwise authorized, are
in writing. In addition to bilateral instruments, contracts include (but are not limited to): awards and notices
of awards; job orders or task orders issued under basic ordering agreements; letter contracts; orders, such as
purchase orders, under which the contract becomes effective by written acceptance or performance; and,
bilateral contract modifications. Contracts do not include grants and cooperative agreements covered by 31
U.S.C. 6301etseq.
9. "Cost" means an amount 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.
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10. "Cost allocation plan" means central service cost allocation plan, public assistance cost allocation plan,
and indirect cost rate proposal. Each of these terms are further defined in this section.
11. "Cost objective" means a function, organizational subdivision, contract, grant, or other activity for which
cost data are needed and for which costs are incurred.
12. "Federally recognized Indian tribal government" means the governing body or a governmental agency of
any Indian tribe, band, nation, or other organized group or community (including any native village as
defined in Section 3 of the Alaska Native Claims Settlement Act, 85 Stat. 688) certified by the Secretary of
the Interior as eligible for the special programs and services provided through the Bureau of Indian Affairs.
13. "Governmental unit" means the entire State, local, or federally recognized Indian tribal government,
including any component thereof. Components of governmental units may function independently of the
governmental unit in accordance with the term of the award.
14. "Grantee department or agency" means the component of a State, local, or federally recognized Indian
tribal government which is responsible for the performance or administration of all or some part of a Federal
award.
15. "Indirect cost rate proposal" means the documentation prepared by a governmental unit or component
thereof to substantiate its request for the establishment of an indirect cost rate as described in Attachment E
of this Circular.
16. "Local government" means a county, municipality, city, town, township, local public authority, school
district, special district, intrastate district, council of governments (whether or not incorporated as a non profit
corporation under State law), any other regional or interstate government entity, or any agency or
instrumentality of a local government.
17. "Public assistance cost allocation plan" means a narrative description of the procedures that will be used
in identifying, measuring and allocating all administrative costs to all of the programs administered or
supervised by State public assistance agencies as described in Attachment D of this Circular.
18. "State" means any of the several States of the United States, the District of Columbia, the Commonwealth
of Puerto Rico, any territory or possession of the United States, or any agency or instrumentality of a State
exclusive of local governments.
C.
1. Factors affecting allowability of costs. To be allowable under Federal awards, costs must meet the
following general criteria:
a. Be necessary and reasonable for proper and efficient performance and administration of Federal
awards.
b. Be allocable to Federal awards under the provisions of this Circular.
c. Be authorized or not prohibited under State or local laws or regulations.
d. Conform to any limitations or exclusions set forth in these principles, Federal laws, terms and
conditions of the Federal award, or other governing regulations as to types or amounts of cost items.
e. Be consistent with policies, regulations, and procedures that apply uniformly to both Federal awards
and other activities of the governmental unit.
f. Be accorded consistent treatment. A cost may not be assigned to a Federal award as a direct cost if
any other cost incurred for the same purpose in like circumstances has been allocated to the Federal
award as an indirect cost.
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g. Except as otherwise provided for in this Circular, be determined in accordance with generally
accepted accounting principles.
h. Not be included as a cost or used to meet cost sharing or matching requirements of any other Federal
award in either the current or a prior period, except as specifically provided by Federal law or
regulation.
i. Be the net of all applicable credits.
j. Be adequately documented.
2. Reasonable costs. A cost is reasonable if, in its nature and amount, 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. The question of reasonableness is particularly important when governmental units or components
are predominately federally funded. In determining reasonableness of a given cost, consideration shall be
given to:
a. Whether the cost is of a type generally recognized as ordinary and necessary for the operation of the
governmental unit or the performance of the Federal award.
b. The restraints or requirements imposed by such factors as: sound business practices; arms length
bargaining; Federal, State and other laws and regulations; and, terms and conditions of the Federal
award.
c. Market prices for comparable goods or services.
d. Whether the individuals concerned acted with prudence in the circumstances considering their
responsibilities to the governmental unit, its employees, the public at large, and the Federal
Government.
e. Significant deviations from the established practices of the governmental unit which may
unjustifiably increase the Federal award's cost.
3. Allocable costs.
a. A cost is allocable to a particular cost objective if the goods or services involved are chargeable or
assignable to such cost objective in accordance with relative benefits received.
b. All activities which benefit from the governmental unit's indirect cost, including unallowable
activities and services donated to the governmental unit by third parties, will receive an appropriate
allocation of indirect costs.
c. Any cost allocable to a particular Federal award or cost objective under the principles provided for in
this Circular may not be charged to other Federal awards to overcome fund deficiencies, to avoid
restrictions imposed by law or terms of the Federal awards, or for other reasons.
d. Where an accumulation of indirect costs will ultimately result in charges to a Federal award, a cost
allocation plan will be required as described in Attachments C, D, and E.
4. Applicable credits.
a. Applicable credits refer to those receipts or reduction of expenditure type transactions that offset or
reduce expense items allocable to Federal awards as direct or indirect costs. Examples of such
transactions are: purchase discounts, rebates or allowances, recoveries or indemnities on losses,
insurance refunds or rebates, and adjustments of overpayments or erroneous charges. To the extent
that such credits accruing to or received by the governmental unit relate to allowable costs, they shall
be credited to the Federal award either as a cost reduction or cash refund, as appropriate.
EPA Tribal, U.S. Territories and Insular Areas Administrative Financial Guidance for Assistance Agreements
Last September 2013 201 of 519
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b. In some instances, the amounts received from the Federal Government to finance activities or service
operations of the governmental unit should be treated as applicable credits. Specifically, the concept
of netting such credit items (including any amounts used to meet cost sharing or matching
requirements) should be recognized in determining the rates or amounts to be charged to Federal
awards. (See Attachment B, item 11, "Depreciation and use allowances," for areas of potential
application in the matter of Federal financing of activities.)
D. Composition of Cost
1. Total cost. The total cost of Federal awards is comprised of the allowable direct cost of the program, plus
its allocable portion of allowable indirect costs, less applicable credits.
2. Classification of costs. There is no universal rule for classifying certain costs as either direct or indirect
under every accounting system. A cost may be direct with respect to some specific service or function, but
indirect with respect to the Federal award or other final cost objective. Therefore, it is essential that each item
of cost be treated consistently in like circumstances either as a direct or an indirect cost. Guidelines for
determining direct and indirect costs charged to Federal awards are provided in the sections that follow.
E. Direct Costs
1. General. Direct costs are those that can be identified specifically with a particular final cost objective.
2. Application. Typical direct costs chargeable to Federal awards are:
a. Compensation of employees for the time devoted and identified specifically to the performance of
those awards.
b. Cost of materials acquired, consumed, or expended specifically for the purpose of those awards.
c. Equipment and other approved capital expenditures.
d. Travel expenses incurred specifically to carry out the award.
3. Minor items. Any direct cost of a minor amount may be treated as an indirect cost for reasons of
practicality where such accounting treatment for that item of cost is consistently applied to all cost objectives.
F. Indirect Costs
1. General. Indirect costs are those: (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. The term "indirect costs," as used herein, applies to costs of this type
originating in the grantee department, as well as those incurred by other departments in supplying goods,
services, and facilities. To facilitate equitable distribution of indirect expenses to the cost objectives served, it
may be necessary to establish a number of pools of indirect costs within a governmental unit department or in
other agencies providing services to a governmental unit department. Indirect cost pools should be distributed
to benefitted cost objectives on bases that will produce an equitable result in consideration of relative benefits
derived.
2. Cost allocation plans and indirect cost proposals. Requirements for development and submission of cost
allocation plans and indirect cost rate proposals are contained in Attachments C, D, and E.
3. Limitation on indirect or administrative costs.
a. In addition to restrictions contained in this Circular, there may be laws that further limit the amount
of administrative or indirect cost allowed.
b. Amounts not recoverable as indirect costs or administrative costs under one Federal award may not
be shifted to another Federal award, unless specifically authorized by Federal legislation or
regulation.
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G. Inferagency Services, The cost of services provided by one agency to another within the governmental
unit may include allowable direct costs of the service plus a pro rate share of indirect costs. A standard
indirect cost allowance equal to ten percent of the direct salary and wage cost of providing the service
(excluding overtime, shift premiums, and fringe benefits) may be used in lieu of determining the actual
indirect costs of the service. These services do not include centralized services included in central service
cost allocation plans as described in Attachment C.
H. Required Certifications. Each cost allocation plan or indirect cost rate proposal required by Attachments
C and E must comply with the following:
1. No proposal to establish a cost allocation plan or an indirect cost rate, whether submitted to a Federal
cognizant agency or maintained on file by the governmental unit, shall be acceptable unless such costs have
been certified by the governmental unit using the Certificate of Cost Allocation Plan or Certificate of Indirect
Costs as set forth in Attachments C and E. The certificate must be signed on behalf of the governmental unit
by an individual at a level no lower than chief financial officer of the governmental unit that submits the
proposal or component covered by the proposal.
2. No cost allocation plan or indirect cost rate shall be approved by the Federal Government unless the plan
or rate proposal has been certified. Where it is necessary to establish a cost allocation plan or an indirect cost
rate and the governmental unit has not submitted a certified proposal for establishing such a plan or rate in
accordance with the requirements, the Federal Government may either disallow all indirect costs or
unilaterally establish such a plan or rate. Such a plan or rate may be based upon audited historical data or
such other data that have been furnished to the cognizant Federal agency and for which it can be
demonstrated that all unallowable costs have been excluded. When a cost allocation plan or indirect cost rate
is unilaterally established by the Federal Government because of failure of the governmental unit to submit a
certified proposal, the plan or rate established will be set to ensure that potentially unallowable costs will not
be reimbursed.
ATTACHMENT B
Circular No. A 87
SELECTED ITEMS OF COST
TABLE OF CONTENTS
1. Advertising and public relations costs
2. Advisory councils
3. Alcoholic beverages
4. Audit costs and related services
5. Bad debts
6. Bonding costs
7. Communication costs
8. Compensation for personal services
9. Contingency provisions
10. Defense and prosecution of criminal and civil proceedings, and claims
11. Depreciation and use allowances
12. Donations and contributions
13. Employee morale, health, and welfare costs
14. Entertainment costs
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15. Equipment and other capital expenditures
16. Fines and penalties
17. Fund raising and investment management costs
18. Gains and losses on disposition of depreciable property and other capital assets and substantial
relocation of Federal programs
19. General government expenses
20. Goods or services for personal use
21. Idle facilities and idle capacity
22. Insurance and indemnification
23. Interest
24. Lobbying
25. Maintenance, operations, and repairs
26. Materials and supplies costs
27. Meetings and conferences
28. Memberships, subscriptions, and professional activity costs
29. Patent costs
30. Plant and homeland security costs
31. Pre award costs
32. Professional service costs
33. Proposal costs
34. Publication and printing costs
35. Rearrangement and alteration costs
36. Reconversion costs
37. Rental costs of building and equipment
38. Royalties and other costs for the use of patents
39. Selling and marketing
40. Taxes
41. Termination costs applicable to sponsored agreements
42. Training costs
43. Travel costs
Sections 1 through 43 provide principles to be applied in establishing the allowability or unallowability of
certain items of cost. These principles apply whether a cost is treated as direct or indirect. A cost is allowable
for Federal reimbursement only to the extent of benefits received by Federal awards and its conformance with
the general policies and principles stated in Attachment A to this Circular. Failure to mention a particular
item of cost in these sections is not intended to imply that it is either allowable or unallowable; rather,
determination of allowability in each case should be based on the treatment or standards provided for similar
or related items of cost.
1. Advertising and public relations casts,
a. The term advertising costs means the costs of advertising media and corollary administrative costs.
Advertising media include magazines, newspapers, radio and television, direct mail, exhibits,
electronic or computer transmittals, and the like.
b. The term public relations includes community relations and means those activities dedicated to
maintaining the image of the governmental unit or maintaining or promoting understanding and
favorable relations with the community or public at large or any segment of the public.
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c. The only allowable advertising costs are those which are solely for:
(1) The recruitment of personnel required for the performance by the governmental unit of
obligations arising under a Federal award ;
(2) The procurement of goods and services for the performance of a Federal award;
(3) The disposal of scrap or surplus materials acquired in the performance of a Federal award except
when governmental units are reimbursed for disposal costs at a predetermined amount; or
(4) Other specific purposes necessary to meet the requirements of the Federal award.
d. The only allowable public relations costs are:
(1) Costs specifically required by the Federal award;
(2) Costs of communicating with the public and press pertaining to specific activities or
accomplishments which result from performance of Federal awards (these costs are considered
necessary as part of the outreach effort for the Federal award); or
(3) Costs of conducting general liaison with news media and government public relations officers, to
the extent that such activities are limited to communication and liaison necessary keep the public
informed on matters of public concern, such as notices of Federal contract/grant awards, financial
matters, etc.
e. Costs identified in subsections c and d if incurred for more than one Federal award or for both
sponsored work and other work of the governmental unit, are allowable to the extent that the
principles in Attachment A, sections E. ("Direct Costs") and F. ("Indirect Costs") are observed.
f. Unallowable advertising and public relations costs include the following:
(1) All advertising and public relations costs other than as specified in subsections c, d, and e;
(2) Costs of meetings, conventions, convocations, or other events related to other activities of the
governmental unit, including:
(a) Costs of displays, demonstrations, and exhibits;
(b) Costs of meeting rooms, hospitality suites, and other special facilities used in conjunction
with shows and other special events; and
(c) Salaries and wages of employees engaged in setting up and displaying exhibits, making
demonstrations, and providing briefings;
(3) Costs of promotional items and memorabilia, including models, gifts, and souvenirs;
(4) Costs of advertising and public relations designed solely to promote the governmental unit.
2. Advisory councils. Costs incurred by advisory councils or committees are allowable as a direct cost where
authorized by the Federal awarding agency or as an indirect cost where allocable to Federal awards.
3. Alcoholic beverages. Costs of alcoholic beverages are unallowable.
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4.
a. The costs of audits required by, and performed in accordance with, the Single Audit Act, as
implemented by Circular A-l 33, "Audits of States, Local Governments, and Non-Profit
Organizations" are allowable. Also see 31 USC 7505(b) and section 230 ("Audit Costs") of Circular
A-133.
b. Other audit costs are allowable if included in a cost allocation plan or indirect cost proposal, or if
specifically approved by the awarding agency as a direct cost to an award.
c. The cost of agreed-upon procedures engagements to monitor subrecipients who are exempted from
A-133 under section 200(d) are allowable, subject to the conditions listed in A-133, section 230
5. •• ' Bad debts, including losses (whether actual or estimated) arising from uncollectable accounts
and other claims, related collection costs, and related legal costs, are unallowable.
6. .< ., -
a. Bonding costs arise when the Federal Government requires assurance against financial loss to itself
or others by reason of the act or default of the governmental unit. They arise also in instances where
the governmental unit requires similar assurance. Included are such bonds as bid, performance,
payment, advance payment, infringement, and fidelity bonds.
b. Costs of bonding required pursuant to the terms of the award are allowable.
c. Costs of bonding required by the governmental unit in the general conduct of its operations are
allowable to the extent that such bonding is in accordance with sound business practice and the rates
and premiums are reasonable under the circumstances.
7. • •• , - Costs incurred for telephone services, local and long distance telephone calls,
telegrams, postage, messenger, electronic or computer transmittal services and the like are allowable.
8. . . ,-•..-.••,
a. General. Compensation for personnel services includes all remuneration, paid currently or accrued,
for services rendered during the period of performance under Federal awards, including but not
necessarily limited to wages, salaries, and fringe benefits. The costs of such compensation are
allowable to the extent that they satisfy the specific requirements of this Circular, and that the total
compensation for individual employees:
(1) Is reasonable for the services rendered and conforms to the established policy of the
governmental unit consistently applied to both Federal and non Federal activities;
(2) Follows an appointment made in accordance with a governmental unit's laws and rules and meets
merit system or other requirements required by Federal law, where applicable; and
(3) Is determined and supported as provided in subsection h.
b. Reasonableness. Compensation for employees engaged in work on Federal awards will be considered
reasonable to the extent that it is consistent with that paid for similar work in other activities of the
governmental unit. In cases where the kinds of employees required for Federal awards are not found
in the other activities of the governmental unit, compensation will be considered reasonable to the
extent that it is comparable to that paid for similar work in the labor market in which the employing
government competes for the kind of employees involved. Compensation surveys providing data
representative of the labor market involved will be an acceptable basis for evaluating reasonableness.
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c. Unallowable costs. Costs which are unallowable under other sections of these principles shall not be
allowable under this section solely on the basis that they constitute personnel compensation.
d. Fringe benefits.
(1) Fringe benefits are allowances and services provided by employers to their employees as
compensation in addition to regular salaries and wages. Fringe benefits include, but are not limited
to, the costs of leave, employee insurance, pensions, and unemployment benefit plans. Except as
provided elsewhere in these principles, the costs of fringe benefits are allowable to the extent that the
benefits are reasonable and are required by law, governmental unit employee agreement, or an
established policy of the governmental unit.
(2) The cost of fringe benefits in the form of regular compensation paid to employees during periods
of authorized absences from the job, such as for annual leave, sick leave, holidays, court leave,
military leave, and other similar benefits, are allowable if: (a) they are provided under established
written leave policies; (b) the costs are equitably allocated to all related activities, including Federal
awards; and, (c) the accounting basis (cash or accrual) selected for costing each type of leave is
consistently followed by the governmental unit.
(3) When a governmental unit uses the cash basis of accounting, the cost of leave is recognized in the
period that the leave is taken and paid for. Payments for unused leave when an employee retires or
terminates employment are allowable in the year of payment provided they are allocated as a general
administrative expense to all activities of the governmental unit or component.
(4) The accrual basis may be only used for those types of leave for which a liability as defined by
Generally Accepted Accounting Principles (GAAP) exists when the leave is earned. When a
governmental unit uses the accrual basis of accounting, in accordance with GAAP, allowable leave
costs are the lesser of the amount accrued or funded.
(5) The cost of fringe benefits in the form of employer contributions or expenses for social security;
employee life, health, unemployment, and worker's compensation insurance (except as indicated in
section 22, Insurance and indemnification); pension plan costs (see subsection e.); and other similar
benefits are allowable, provided such benefits are granted under established written policies. Such
benefits, whether treated as indirect costs or as direct costs, shall be allocated to Federal awards and
all other activities in a manner consistent with the pattern of benefits attributable to the individuals or
group(s) of employees whose salaries and wages are chargeable to such Federal awards and other
activities.
e. Pension plan costs. Pension plan costs may be computed using a pay as you go method or an
acceptable actuarial cost method in accordance with established written policies of the governmental
unit.
(1) For pension plans financed on a pay as you go method, allowable costs will be limited to those
representing actual payments to retirees or their beneficiaries.
(2) Pension costs calculated using an actuarial cost based method recognized by GAAP are allowable
for a given fiscal year if they are funded for that year within six months after the end of that year.
Costs funded after the six month period (or a later period agreed to by the cognizant agency) are
allowable in the year funded. The cognizant agency may agree to an extension of the six month
period if an appropriate adjustment is made to compensate for the timing of the charges to the
Federal Government and related Federal reimbursement and the governmental unit's contribution to
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the pension fund. Adjustments may be made by cash refund or other equitable procedures to
compensate the Federal Government for the time value of Federal reimbursements in excess of
contributions to the pension fund.
(3) Amounts funded by the governmental unit in excess of the actuarially determined amount for a
fiscal year may be used as the governmental unit's contribution in future periods.
(4) When a governmental unit converts to an acceptable actuarial cost method, as defined by GAAP,
and funds pension costs in accordance with this method, the unfunded liability at the time of
conversion shall be allowable if amortized over a period of years in accordance with GAAP.
(5) The Federal Government shall receive an equitable share of any previously allowed pension costs
(including earnings thereon) which revert or inure to the governmental unit in the form of a refund,
withdrawal, or other credit.
Post retirement health benefits. Post retirement health benefits (PRHB) refers to costs of health
insurance or health services not included in a pension plan covered by subsection e. for retirees and
their spouses, dependents, and survivors. PRHB costs may be computed using a pay as you go
method or an acceptable actuarial cost method in accordance with established written polices of the
governmental unit.
(1) For PRHB financed on a pay as you go method, allowable costs will be limited to those
representing actual payments to retirees or their beneficiaries.
(2) PRHB costs calculated using an actuarial cost method recognized by GAAP are allowable if they
are funded for that year within six months after the end of that year. Costs funded after the six month
period (or a later period agreed to by the cognizant agency) are allowable in the year funded. The
cognizant agency may agree to an extension of the six month period if an appropriate adjustment is
made to compensate for the timing of the charges to the Federal Government and related Federal
reimbursements and the governmental unit's contributions to the PRHB fund. Adjustments may be
made by cash refund, reduction in current year's PRHB costs, or other equitable procedures to
compensate the Federal Government for the time value of Federal reimbursements in excess of
contributions to the PRHB fund.
(3) Amounts funded in excess of the actuarially determined amount for a fiscal year may be used as
the government's contribution in a future period.
(4) When a governmental unit converts to an acceptable actuarial cost method and funds PRHB costs
in accordance with this method, the initial unfunded liability attributable to prior years shall be
allowable if amortized over a period of years in accordance with GAAP, or, if no such GAAP period
exists, over a period negotiated with the cognizant agency.
(5) To be allowable in the current year, the PRHB costs must be paid either to:
(a) An insurer or other benefit provider as current year costs or premiums, or
(b) An insurer or trustee to maintain a trust fund or reserve for the sole purpose of providing
post retirement benefits to retirees and other beneficiaries.
(6) The Federal Government shall receive an equitable share of any amounts of previously allowed
post retirement benefit costs (including earnings thereon) which revert or inure to the governmental
unit in the form of a refund, withdrawal, or other credit.
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g. Severance pay.
(1) Payments in addition to regular salaries and wages made to workers whose employment is being
terminated are allowable to the extent that, in each case, they are required by (a) law, (b) employer
employee agreement, or (c) established written policy.
(2) Severance payments (but not accruals) associated with normal turnover are allowable. Such
payments shall be allocated to all activities of the governmental unit as an indirect cost.
(3) Abnormal or mass severance pay will be considered on a case by case basis and is allowable only
if approved by the cognizant Federal agency.
h. Support of salaries and wages. These standards regarding time distribution are in addition to the
standards for payroll documentation.
(1) Charges to Federal awards for salaries and wages, whether treated as direct or indirect costs, will
be based on payrolls documented in accordance with generally accepted practice of the governmental
unit and approved by a responsible official(s) of the governmental unit.
(2) No further documentation is required for the salaries and wages of employees who work in a
single indirect cost activity.
(3) Where employees are expected to work solely on a single Federal award or cost objective,
charges for their salaries and wages will be supported by periodic certifications that the employees
worked solely on that program for the period covered by the certification. These certifications will be
prepared at least semi annually and will be signed by the employee or supervisory official having
first hand knowledge of the work performed by the employee.
(4) Where employees work on multiple activities or cost objectives, a distribution of their salaries or
wages will be supported by personnel activity reports or equivalent documentation which meets the
standards in subsection (5) unless a statistical sampling system (see subsection (6)) or other substitute
system has been approved by the cognizant Federal agency. Such documentary support will be
required where employees work on:
(a) More than one Federal award,
(b) A Federal award and a non Federal award,
(c) An indirect cost activity and a direct cost activity,
(d) Two or more indirect activities which are allocated using different allocation bases, or
(e) An unallowable activity and a direct or indirect cost activity.
(5) Personnel activity reports or equivalent documentation must meet the following standards:
(a) They must reflect an after the fact distribution of the actual activity of each employee,
(b) They must account for the total activity for which each employee is compensated,
(c) They must be prepared at least monthly and must coincide with one or more pay periods,
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and
(d) They must be signed by the employee.
(e) Budget estimates or other distribution percentages determined before the services are
performed do not qualify as support for charges to Federal awards but may be used for
interim accounting purposes, provided that:
(i) The governmental unit's system for establishing the estimates produces reasonable
approximations of the activity actually performed;
(ii) At least quarterly, comparisons of actual costs to budgeted distributions based on
the monthly activity reports are made. Costs charged to Federal awards to reflect
adjustments made as a result of the activity actually performed may be recorded
annually if the quarterly comparisons show the differences between budgeted and
actual costs are less than ten percent; and
(iii) The budget estimates or other distribution percentages are revised at least
quarterly, if necessary, to reflect changed circumstances.
(6) Substitute systems for allocating salaries and wages to Federal awards may be used in place of
activity reports. These systems are subject to approval if required by the cognizant agency. Such
systems may include, but are not limited to, random moment sampling, case counts, or other
quantifiable measures of employee effort.
(a) Substitute systems which use sampling methods (primarily for Temporary Assistance to
Needy Families (TANF), Medicaid, and other public assistance programs) must meet
acceptable statistical sampling standards including:
(i) The sampling universe must include all of the employees whose salaries and
wages are to be allocated based on sample results except as provided in subsection
(c);
(ii) The entire time period involved must be covered by the sample; and
(iii) The results must be statistically valid and applied to the period being sampled.
(b) Allocating charges for the sampled employees' supervisors, clerical and support staffs,
based on the results of the sampled employees, will be acceptable.
(c) Less than full compliance with the statistical sampling standards noted in subsection (a)
may be accepted by the cognizant agency if it concludes that the amounts to be allocated to
Federal awards will be minimal, or if it concludes that the system proposed by the
governmental unit will result in lower costs to Federal awards than a system which complies
with the standards.
(7) Salaries and wages of employees used in meeting cost sharing or matching requirements of
Federal awards must be supported in the same manner as those claimed as allowable costs under
Federal awards.
i. Donated services.
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(1) Donated or volunteer services may be furnished to a governmental unit by professional and
technical personnel, consultants, and other skilled and unskilled labor. The value of these services is
not reimbursable either as a direct or indirect cost. However, the value of donated services may be
used to meet cost sharing or matching requirements in accordance with the provisions of the
Common Rule.
(2) The value of donated services utilized in the performance of a direct cost activity shall, when
material in amount, be considered in the determination of the governmental unit's indirect costs or
rate(s) and, accordingly, shall be allocated a proportionate share of applicable indirect costs.
(3) To the extent feasible, donated services will be supported by the same methods used by the
governmental unit to support the allocability of regular personnel services.
9. : :,,,!-'. ,,:.;.,• Contributions to a contingency reserve or any similar provision made for events
the occurrence of which cannot be foretold with certainty as to time, intensity, or with an assurance of their
happening, are unallowable. The term "contingency reserve" excludes self-insurance reserves (see
Attachment B, section 22.c.), pension plan reserves (see Attachment B, section 8.e.), and post-retirement
health and other benefit reserves (see Attachment B, section 8.f) computed using acceptable actuarial cost
methods.
10.
a. The following costs are unallowable for contracts covered by 10 U.S.C. 2324(k), "Allowable costs
under defense contracts."
(1) Costs incurred in defense of any civil or criminal fraud proceeding or similar proceeding
(including filing of false certification brought by the United States where the contractor is found
liable or has pleaded nolo contendere to a charge of fraud or similar proceeding (including filing of a
false certification).
(2) Costs incurred by a contractor in connection with any criminal, civil or administrative
proceedings commenced by the United States or a State to the extent provided in 10 U.S.C. 2324(k).
b. Legal expenses required in the administration of Federal programs are allowable. Legal expenses for
prosecution of claims against the Federal Government are unallowable.
11.
Depreciation and use allowances are means of allocating the cost of fixed assets to periods benefiting
from asset use. Compensation for the use of fixed assets on hand may be made through depreciation
or use allowances. A combination of the two methods may not be used in connection with a single
class of fixed assets (e.g., buildings, office equipment, computer equipment, etc.) except as provided
for in subsection g. Except for enterprise funds and internal service funds that are included as part of
a State/local cost allocation plan, classes of assets shall be determined on the same basis used for the
government-wide financial statements.
The computation of depreciation or use allowances shall be based on the acquisition cost of the assets
involved. Where actual cost records have not been maintained, a reasonable estimate of the original
acquisition cost may be used. The value of an asset donated to the governmental unit by an unrelated
third party shall be its fair market value at the time of donation. Governmental or quasi-governmental
organizations located within the same State shall not be considered unrelated third parties for this
purpose.
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c. The computation of depreciation or use allowances will exclude:
(1) The cost of land;
(2) Any portion of the cost of buildings and equipment borne by or donated by the Federal
Government irrespective of where title was originally vested or where it presently resides; and
(3) Any portion of the cost of buildings and equipment contributed by or for the governmental unit,
or a related donor organization, in satisfaction of a matching requirement.
d. Where the depreciation method is followed, the period of useful service (useful life) established in
each case for usable capital assets must take into consideration such factors as type of construction,
nature of the equipment used, historical usage patterns, technological developments, and the renewal
and replacement policies of the governmental unit followed for the individual items or classes of
assets involved. In the absence of clear evidence indicating that the expected consumption of the
asset will be significantly greater in the early portions than in the later portions of its useful life, the
straight line method of depreciation shall be used.
Depreciation methods once used shall not be changed unless approved by the Federal cognizant or
awarding agency. When the depreciation method is introduced for application to an asset previously
subject to a use allowance, the annual depreciation charge thereon may not exceed the amount that
would have resulted had the depreciation method been in effect from the date of acquisition of the
asset. The combination of use allowances and depreciation applicable to the asset shall not exceed the
total acquisition cost of the asset or fair market value at time of donation.
e. When the depreciation method is used for buildings, a building's shell may be segregated from the
major component of the building (e.g., plumbing system, heating, and air conditioning system, etc.)
and each major component depreciated over its estimated useful life, or the entire building (i.e., the
shell and all components) may be treated as a single asset and depreciated over a single useful life.
f Where the use allowance method is followed, the use allowance for buildings and improvements
(including land improvements, such as paved parking areas, fences, and sidewalks) will be computed
at an annual rate not exceeding two percent of acquisition costs. The use allowance for equipment
will be computed at an annual rate not exceeding 6 2/3 percent of acquisition cost. When the use
allowance method is used for buildings, the entire building must be treated as a single asset; the
building's components (e.g., plumbing system, heating and air condition, etc.) cannot be segregated
from the building's shell.
The two percent limitation, however, need not be applied to equipment which is merely attached or
fastened to the building but not permanently fixed to it and which is used as furnishings or
decorations or for specialized purposes (e.g., dentist chairs and dental treatment units, counters,
laboratory benches bolted to the floor, dishwashers, modular furniture, carpeting, etc.). Such
equipment will be considered as not being permanently fixed to the building if it can be removed
without the destruction of, or need for costly or extensive alterations or repairs, to the building or the
equipment. Equipment that meets these criteria will be subject to the 6 2/3 percent equipment use
allowance limitation.
g. A reasonable use allowance may be negotiated for any assets that are considered to be fully
depreciated, after taking into consideration the amount of depreciation previously charged to the
government, the estimated useful life remaining at the time of negotiation, the effect of any increased
maintenance charges, decreased efficiency due to age, and any other factors pertinent to the
utilization of the asset for the purpose contemplated.
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12.
13.
Charges for use allowances or depreciation must be supported by adequate property records. Physical
inventories must be taken at least once every two years (a statistical sampling approach is acceptable)
to ensure that assets exist, and are in use. Governmental units will manage equipment in accordance
with State laws and procedures. When the depreciation method is followed, depreciation records
indicating the amount of depreciation taken each period must also be maintained.
a. Contributions or donations rendered. Contributions or donations, including cash, property, and
services, made by the governmental unit, regardless of the recipient, are unallowable.
b. Donated services received:
(1) Donated or volunteer services may be furnished to a governmental unit by professional and
technical personnel, consultants, and other skilled and unskilled labor. The value of these services is
not reimbursable either as a direct or indirect cost. However, the value of donated services may be
used to meet cost sharing or matching requirements in accordance with the Federal Grants
Management Common Rule.
(2) The value of donated services utilized in the performance of a direct cost activity shall, when
material in amount, be considered in the determination of the governmental unit's indirect costs or
rate(s) and, accordingly, shall be allocated a proportionate share of applicable indirect costs.
(3) To the extent feasible, donated services will be supported by the same methods used by the
governmental unit to support the allocability of regular personnel services.
a. The costs of employee information publications, health or first-aid clinics and/or infirmaries,
recreational activities, employee counseling services, and any other expenses incurred in accordance
with the governmental unit's established practice or custom for the improvement of working
conditions, employer-employee relations, employee morale, and employee performance are
allowable.
b. Such costs will be equitably apportioned to all activities of the governmental unit. Income generated
from any of these activities will be offset against expenses.
14. ; '• . . Costs of entertainment, including amusement, diversion, and social activities and any
costs directly associated with such costs (such as tickets to shows or sports events, meals, lodging, rentals,
transportation, and gratuities) are unallowable.
15. , . . - . . . . . ,
a. For purposes of this subsection 15, the following definitions apply:
(1) "Capital Expenditures" means expenditures for the acquisition cost of capital assets (equipment,
buildings, land), or expenditures to make improvements to capital assets that materially increase their
value or useful life. Acquisition cost means the cost of the asset including the cost to put it in place.
Acquisition cost for equipment, for example, means the net invoice price of the equipment, including
the cost of any modifications, attachments, accessories, or auxiliary apparatus necessary to make it
usable for the purpose for which it is acquired. Ancillary charges, such as taxes, duty, protective in
transit insurance, freight, and installation may be included in, or excluded from the acquisition cost in
accordance with the governmental unit's regular accounting practices.
(2) "Equipment" means an article of nonexpendable, tangible personal property having a useful life
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of more than one year and an acquisition cost which equals or exceeds the lesser of the capitalization
level established by the governmental unit for financial statement purposes, or $5000.
(3) "Special purpose equipment" means equipment which is used only for research, medical,
scientific, or other technical activities. Examples of special purpose equipment include microscopes,
x-ray machines, surgical instruments, and spectrometers.
(4) "General purpose equipment" means equipment, which is not limited to research, medical,
scientific or other technical activities. Examples include office equipment and furnishings, modular
offices, telephone networks, information technology equipment and systems, air conditioning
equipment, reproduction and printing equipment, and motor vehicles.
b. The following rules of allowability shall apply to equipment and other capital expenditures:
(1) Capital expenditures for general purpose equipment, buildings, and land are unallowable as direct
charges, except where approved in advance by the awarding agency.
(2) Capital expenditures for special purpose equipment are allowable as direct costs, provided that
items with a unit cost of $5000 or more have the prior approval of the awarding agency.
(3) Capital expenditures for improvements to land, buildings, or equipment which materially increase
their value or useful life are unallowable as a direct cost except with the prior approval of the
awarding agency.
(4) When approved as a direct charge pursuant to Attachment B, section 15.b (1), (2), and (3) above,
capital expenditures will be charged in the period in which the expenditure is incurred, or as
otherwise determined appropriate and negotiated with the awarding agency. In addition, Federal
awarding agencies are authorized at their option to waive or delegate the prior approval requirement.
(5) Equipment and other capital expenditures are unallowable as indirect costs. However, see section
11, Depreciation and use allowance, for rules on the allowability of use allowances or depreciation
on buildings, capital improvements, and equipment. Also, see section 37, Rental costs, concerning
the allowability of rental costs for land, buildings, and equipment.
(6) The unamortized portion of any equipment written off as a result of a change in capitalization
levels may be recovered by continuing to claim the otherwise allowable use allowances or
depreciation on the equipment, or by amortizing the amount to be written off over a period of years
negotiated with the cognizant agency.
(7) When replacing equipment purchased in whole or in part with Federal funds, the governmental
unit 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.
16. Fines and pen allies. Fines, penalties, damages, and other settlements resulting from violations (or alleged
violations) of, or failure of the governmental unit to comply with, Federal, State, local, or Indian tribal laws
and regulations are unallowable except when incurred as a result of compliance with specific provisions of
the Federal award or written instructions by the awarding agency authorizing in advance such payments.
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17.
a. Costs of organized fund raising, including financial campaigns, solicitation of gifts and bequests, and
similar expenses incurred to raise capital or obtain contributions are unallowable, regardless of the
purpose for which the funds will be used.
b. Costs of investment counsel and staff and similar expenses incurred to enhance income from
investments are unallowable. However, such costs associated with investments covering pension, self
insurance, or other funds which include Federal participation allowed by this Circular are allowable.
c. Fund raising and investment activities shall be allocated an appropriate share of indirect costs under
the conditions described in subsection C.S.b. of Attachment A.
18.
a. (1) Gains and losses on the sale, retirement, or other disposition of depreciable property shall be
included in the year in which they occur as credits or charges to the asset cost grouping(s) in which
the property was included. The amount of the gain or loss to be included as a credit or charge to the
appropriate asset cost grouping(s) shall be the difference between the amount realized on the property
and the undepreciated basis of the property.
(2) Gains and losses on the disposition of depreciable property shall not be recognized as a separate
credit or charge under the following conditions:
(a) The gain or loss is processed through a depreciation account and is reflected in the
depreciation allowable under sections 11 and 15.
(b) The property is given in exchange as part of the purchase price of a similar item and the
gain or loss is taken into account in determining the depreciation cost basis of the new item.
(c) A loss results from the failure to maintain permissible insurance, except as otherwise
provided in subsection 22.d.
(d) Compensation for the use of the property was provided through use allowances in lieu of
depreciation.
b. Substantial relocation of Federal awards from a facility where the Federal Government participated
in the financing to another facility prior to the expiration of the useful life of the financed facility
requires Federal agency approval. The extent of the relocation, the amount of the Federal
participation in the financing, and the depreciation charged to date may require negotiation of space
charges for Federal awards.
c. Gains or losses of any nature arising from the sale or exchange of property other than the property
covered in subsection a., e.g., land or included in the fair market value used in any adjustment
resulting from a relocation of Federal awards covered in subsection b. shall be excluded in computing
Federal award costs.
19.
a. The general costs of government are unallowable (except as provided in Attachment B, section 43,
Travel costs). These include:
(1) Salaries and expenses of the Office of the Governor of a State or the chief executive of a political
subdivision or the chief executive of federally recognized Indian tribal government;
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(2) Salaries and other expenses of a State legislature, tribal council, or similar local governmental
body, such as a county supervisor, city council, school board, etc., whether incurred for purposes of
legislation or executive direction;
(3) Costs of the judiciary branch of a government;
(4) Costs of prosecutorial activities unless treated as a direct cost to a specific program if authorized
by program statute or regulation (however, this does not preclude the allowability of other legal
activities of the Attorney General); and
(5) Costs of other general types of government services normally provided to the general public, such
as fire and police, unless provided for as a direct cost under a program statute or regulation.
b. For federally recognized Indian tribal governments and Councils Of Governments (COGs), the
portion of salaries and expenses directly attributable to managing and operating Federal programs by
the chief executive and his staff is allowable.
20. (ioods or services for personal use. Costs of goods or services for personal use of the governmental unit's
employees are unallowable regardless of whether the cost is reported as taxable income to the employees.
21. Idle facilities and Idle capacity,
a. As used in this section the following terms have the meanings set forth below:
(1) "Facilities" means land and buildings or any portion thereof, equipment individually or
collectively, or any other tangible capital asset, wherever located, and whether owned or leased by
the governmental unit.
(2) "Idle facilities" means completely unused facilities that are excess to the governmental unit's
current needs.
(3) "Idle capacity" means the unused capacity of partially used facilities. It is the difference between:
(a) that which a facility could achieve under 100 percent operating time on a one-shift basis less
operating interruptions resulting from time lost for repairs, setups, unsatisfactory materials, and other
normal delays; and (b) the extent to which the facility was actually used to meet demands during the
accounting period. A multi-shift basis should be used if it can be shown that this amount of usage
would normally be expected for the type of facility involved.
(4) "Cost of idle facilities or idle capacity" means costs such as maintenance, repair, housing, rent,
and other related costs, e.g., insurance, interest, property taxes and depreciation or use allowances.
b. The costs of idle facilities are unallowable except to the extent that:
(1) They are necessary to meet fluctuations in workload; or
(2) Although not necessary to meet fluctuations in workload, they were necessary when acquired and
are now idle because of changes in program requirements, efforts to achieve more economical
operations, reorganization, termination, or other causes which could not have been reasonably
foreseen. Under the exception stated in this subsection, costs of idle facilities are allowable for a
reasonable period of time, ordinarily not to exceed one year, depending on the initiative taken to use,
lease, or dispose of such facilities.
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c. The costs of idle capacity are normal costs of doing business and are a factor in the normal
fluctuations of usage or indirect cost rates from period to period. Such costs are allowable, provided
that the capacity is reasonably anticipated to be necessary or was originally reasonable and is not
subject to reduction or elimination by use on other Federal awards, subletting, renting, or sale, in
accordance with sound business, economic, or security practices. Widespread idle capacity
throughout an entire facility or among a group of assets having substantially the same function may
be considered idle facilities.
22. Insurance and indemnification.
a. Costs of insurance required or approved and maintained, pursuant to the Federal award, are
allowable.
b. Costs of other insurance in connection with the general conduct of activities are allowable subject to
the following limitations:
(1) Types and extent and cost of coverage are in accordance with the governmental unit's policy and
sound business practice.
(2) Costs of insurance or of contributions to any reserve covering the risk of loss of, or damage to,
Federal Government property are unallowable except to the extent that the awarding agency has
specifically required or approved such costs.
c. Actual losses which could have been covered by permissible insurance (through a self insurance
program or otherwise) are unallowable, unless expressly provided for in the Federal award or as
described below. However, the Federal Government will participate in actual losses of a self
insurance fund that are in excess of reserves. Costs incurred because of losses not covered under
nominal deductible insurance coverage provided in keeping with sound management practice, and
minor losses not covered by insurance, such as spoilage, breakage, and disappearance of small hand
tools, which occur in the ordinary course of operations, are allowable.
d. Contributions to a reserve for certain self insurance programs including workers compensation,
unemployment compensation, and severance pay are allowable subject to the following provisions:
(1) The type of coverage and the extent of coverage and the rates and premiums would have been
allowed had insurance (including reinsurance) been purchased to cover the risks. However, provision
for known or reasonably estimated self insured liabilities, which do not become payable for more
than one year after the provision is made, shall not exceed the discounted present value of the
liability. The rate used for discounting the liability must be determined by giving consideration to
such factors as the governmental unit's settlement rate for those liabilities and its investment rate of
return.
(2) Earnings or investment income on reserves must be credited to those reserves.
(3) Contributions to reserves must be based on sound actuarial principles using historical experience
and reasonable assumptions. Reserve levels must be analyzed and updated at least biennially for each
major risk being insured and take into account any reinsurance, coinsurance, etc. Reserve levels
related to employee related coverages will normally be limited to the value of claims (a) submitted
and adjudicated but not paid, (b) submitted but not adjudicated, and (c) incurred but not submitted.
Reserve levels in excess of the amounts based on the above must be identified and justified in the
cost allocation plan or indirect cost rate proposal.
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e. (4) Accounting records, actuarial studies, and cost allocations (or billings) must recognize any
significant differences due to types of insured risk and losses generated by the various insured
activities or agencies of the governmental unit. If individual departments or agencies of the
governmental unit experience significantly different levels of claims for a particular risk, those
differences are to be recognized by the use of separate allocations or other techniques resulting in an
equitable allocation.
(5) Whenever funds are transferred from a self insurance reserve to other accounts (e.g., general
fund), refunds shall be made to the Federal Government for its share of funds transferred, including
earned or imputed interest from the date of transfer.
f Actual claims paid to or on behalf of employees or former employees for workers' compensation,
unemployment compensation, severance pay, and similar employee benefits (e.g., subsection 8.f for
post retirement health benefits), are allowable in the year of payment provided (1) the governmental
unit follows a consistent costing policy and (2) they are allocated as a general administrative expense
to all activities of the governmental unit.
g. Insurance refunds shall be credited against insurance costs in the year the refund is received.
h. Indemnification includes securing the governmental unit against liabilities to third persons and other
losses not compensated by insurance or otherwise. The Federal Government is obligated to
indemnify the governmental unit only to the extent expressly provided for in the Federal award,
except as provided in subsection d.
i. Costs of commercial insurance that protects against the costs of the contractor for correction of the
contractor's own defects in materials or workmanship are unallowable.
23.
a. Costs incurred for interest on borrowed capital or the use of a governmental unit's own funds,
however represented, are unallowable except as specifically provided in subsection b. or authorized
by Federal legislation.
b. Financing costs (including interest) paid or incurred which are associated with the otherwise
allowable costs of building acquisition, construction, or fabrication, reconstruction or remodeling
completed on or after October 1, 1980 is allowable subject to the conditions in (1) through (4) of this
section 23.b. Financing costs (including interest) paid or incurred on or after September 1, 1995 for
land or associated with otherwise allowable costs of equipment is allowable, subject to the conditions
in (1) through (4).
(1) The financing is provided (from other than tax or user fee sources) by a bona fide third party
external to the governmental unit;
(2) Thee assets are used in support of Federal awards;
(3) Earnings on debt service reserve funds or interest earned on borrowed funds pending payment of
the construction or acquisition costs are used to offset the current period's cost or the capitalized
interest, as appropriate. Earnings subject to being reported to the Federal Internal Revenue Service
under arbitrage requirements are excludable.
(4) For debt arrangements over $1 million, unless the governmental unit makes an initial equity
contribution to the asset purchase of 25 percent or more, the governmental unit shall reduce claims
for interest cost by an amount equal to imputed interest earnings on excess cash flow, which is to be
calculated as follows. Annually, non-Federal entities shall prepare a cumulative (from the inception
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of the project) report of monthly cash flows that includes inflows and outflows, regardless of the
funding source. Inflows consist of depreciation expense, amortization of capitalized construction
interest, and annual interest cost. For cash flow calculations, the annual inflow figures shall be
divided by the number of months in the year (i.e., usually 12) that the building is in service for
monthly amounts. Outflows consist of initial equity contributions, debt principal payments (less the
pro rata share attributable to the unallowable costs of land) and interest payments. Where cumulative
inflows exceed cumulative outflows, interest shall be calculated on the excess inflows for that period
and be treated as a reduction to allowable interest cost. The rate of interest to be used to compute
earnings on excess cash flows shall be the three-month Treasury bill closing rate as of the last
business day of that month.
(5) Interest attributable to fully depreciated assets is unallowable.
24. Lobbying.
a. General. The cost of certain influencing activities associated with obtaining grants, contracts,
cooperative agreements, or loans is an unallowable cost. Lobbying with respect to certain grants,
contracts, cooperative agreements, and loans shall be governed by the common rule, "New
Restrictions on Lobbying" published at 55 FR 6736 (February 26, 1990), including definitions, and
the Office of Management and Budget "Government wide Guidance for New Restrictions on
Lobbying" and notices published at 54 FR 52306 (December 20, 1989), 55 FR 24540 (June 15,
1990), and 57 FR 1772 (January 15, 1992), respectively.
b. Executive lobbying costs. Costs incurred in attempting to improperly influence either directly or
indirectly, an employee or officer of the Executive Branch of the Federal Government to give
consideration or to act regarding a sponsored agreement or a regulatory matter are unallowable.
Improper influence means any influence that induces or tends to induce a Federal employee or officer
to give consideration or to act regarding a federally sponsored agreement or regulatory matter on any
basis other than the merits of the matter.
25. Maintenance, operations, and repairs, Unless prohibited by law, the cost of utilities, insurance, security,
janitorial services, elevator service, upkeep of grounds, necessary maintenance, normal repairs and
alterations, and the like are allowable to the extent that they: (1) keep property (including Federal property,
unless otherwise provided for) in an efficient operating condition, (2) do not add to the permanent value of
property or appreciably prolong its intended life, and (3) are not otherwise included in rental or other charges
for space. Costs which add to the permanent value of property or appreciably prolong its intended life shall
be treated as capital expenditures (see sections 11 and 15).
26.
a. Costs incurred for materials, supplies, and fabricated parts necessary to carry out a Federal award are
allowable.
b. Purchased materials and supplies shall be charged at their actual prices, net of applicable credits.
Withdrawals from general stores or stockrooms should be charged at their actual net cost under any
recognized method of pricing inventory withdrawals, consistently applied. Incoming transportation
charges are a proper part of materials and supplies costs.
c. Only materials and supplies actually used for the performance of a Federal award may be charged as
direct costs.
d. Where federally donated or furnished materials are used in performing the Federal award, such
materials will be used without charge.
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27. '.'••••','.-. ; , *'•••, . Costs of meetings and conferences, the primary purpose of which is the
dissemination of technical information, are allowable. This includes costs of meals, transportation, rental of
facilities, speakers' fees, and other items incidental to such meetings or conferences. But see Attachment B,
section 14, Entertainment costs.
28. .' .-•,
a. Costs of the governmental unit's memberships in business, technical, and professional organizations
are allowable.
b. Costs of the governmental unit's subscriptions to business, professional, and technical periodicals are
allowable.
c. Costs of membership in civic and community, social organizations are allowable as a direct cost with
the approval of the Federal awarding agency.
d. Costs of membership in organizations substantially engaged in lobbying are unallowable.
29. .''
a. The following costs relating to patent and copyright matters are allowable:
(i) cost of preparing disclosures, reports, and other documents required by the Federal award and of
searching the art to the extent necessary to make such disclosures;
(ii) cost of preparing documents and any other patent costs in connection with the filing and
prosecution of a United States patent application where title or royalty-free license is required by the
Federal Government to be conveyed to the Federal Government; and
(iii) general counseling services relating to patent and copyright matters, such as advice on patent and
copyright laws, regulations, clauses, and employee agreements (but see Attachment B, sections 32,
Professional service costs, and 38, Royalties and other costs for use of patents and copyrights).
b. The following costs related to patent and copyright matter are unallowable:
(i) Cost of preparing disclosures, reports, and other documents and of searching the art to the extent
necessary to make disclosures not required by the award
(ii) Costs in connection with filing and prosecuting any foreign patent application, or (ii) any United
States patent application, where the Federal award does not require conveying title or a royalty-free
license to the Federal Government (but see Attachment B, section 38., Royalties and other costs for
use of patents and copyrights).
30. •',,,,,, i( ,••••,,.-. ,;•', .•••• Necessary and reasonable expenses incurred for routine and
homeland security to protect facilities, personnel, and work products are allowable. Such costs include, but
are not limited to, wages and uniforms of personnel engaged in security activities; equipment; barriers;
contractual security services; consultants; etc. Capital expenditures for homeland and plant security purposes
are subject to section 15., Equipment and other capital expenditures, of this Circular.
31. •'•• - . , Pre award costs are those incurred prior to the effective date of the award directly
pursuant to the negotiation and in anticipation of the award where such costs are necessary to comply with
the proposed delivery schedule or period of performance. Such costs are allowable only to the extent that they
would have been allowable if incurred after the date of the award and only with the written approval of the
awarding agency.
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32. Professional service costs,
a. Costs of professional and consultant services rendered by persons who are members of a particular
profession or possess a special skill, and who are not officers or employees of the governmental unit,
are allowable, subject to subparagraphs b and c when reasonable in relation to the services rendered
and when not contingent upon recovery of the costs from the Federal Government.
In addition, legal and related services are limited under Attachment B, section 10.
b. In determining the allowability of costs in a particular case, no single factor or any special
combination of factors is necessarily determinative. However, the following factors are relevant:
(1) The nature and scope of the service rendered in relation to the service required.
(2) The necessity of contracting for the service, considering the governmental unit's capability in the
particular area.
(3) The past pattern of such costs, particularly in the years prior to Federal awards.
(4) The impact of Federal awards on the governmental unit's business (i.e., what new problems have
arisen).
(5) Whether the proportion of Federal work to the governmental unit's total business is such as to
influence the governmental unit in favor of incurring the cost, particularly where the services
rendered are not of a continuing nature and have little relationship to work under Federal grants and
contracts.
(6) Whether the service can be performed more economically by direct employment rather than
contracting.
(7) The qualifications of the individual or concern rendering the service and the customary fees
charged, especially on non-Federal awards.
(8) Adequacy of the contractual agreement for the service (e.g., description of the service, estimate of
time required, rate of compensation, and termination provisions).
c. In addition to the factors in subparagraph b, retainer fees to be allowable must be supported by
available or rendered evidence of bona fide services available or rendered.
33. Proposal costs, Costs of preparing proposals for potential Federal awards are allowable. Proposal costs
should normally be treated as indirect costs and should be allocated to all activities of the governmental unit
utilizing the cost allocation plan and indirect cost rate proposal. However, proposal costs may be charged
directly to Federal awards with the prior approval of the Federal awarding agency.
34. Publication and printing costs,
a. Publication costs include the costs of printing (including the processes of composition, plate-making,
press work, binding, and the end products produced by such processes), distribution, promotion,
mailing, and general handling. Publication costs also include page charges in professional
publications.
b. If these costs are not identifiable with a particular cost objective, they should be allocated as indirect
costs to all benefiting activities of the governmental unit.
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c. Page charges for professional journal publications are allowable as a necessary part of research costs
where:
(1) The research papers report work supported by the Federal Government: and
(2) The charges are levied impartially on all research papers published by the journal, whether or not
by federally sponsored authors
35. • .• ;••.•.. .,- ,- Costs incurred for ordinary and normal rearrangement and
alteration of facilities are allowable. Special arrangements and alterations costs incurred specifically for a
Federal award are allowable with the prior approval of the Federal awarding agency.
36. .'. .•• • •. Costs incurred in the restoration or rehabilitation of the governmental unit's facilities
to approximately the same condition existing immediately prior to commencement of Federal awards, less
costs related to normal wear and tear, are allowable.
37.
a. Subject to the limitations described in subsections b. through d. of this section, rental costs are
allowable to the extent that the rates are reasonable in light of such factors as: rental costs of
comparable property, if any; market conditions in the area; alternatives available; and, the type, life
expectancy, condition, and value of the property leased. Rental arrangements should be reviewed
periodically to determine if circumstances have changed and other options are available.
b. Rental costs under "sale and lease back" arrangements are allowable only up to the amount that
would be allowed had the governmental unit continued to own the property. This amount would
include expenses such as depreciation or use allowance, maintenance, taxes, and insurance.
c. Rental costs under "less-than-arms-length" leases are allowable only up to the amount (as explained
in Attachment B, section 37.b) that would be allowed had title to the property vested in the
governmental unit. For this purpose, a less-than-arms-length lease is one under which one party to
the lease agreement is able to control or substantially influence the actions of the other. Such leases
include, but are not limited to those between (i) divisions of a governmental unit; (ii) governmental
units under common control through common officers, directors, or members; and (iii) a
governmental unit and a director, trustee, officer, or key employee of the governmental unit or his
immediate family, either directly or through corporations, trusts, or similar arrangements in which
they hold a controlling interest. For example, a governmental unit may establish a separate
corporation for the sole purpose of owning property and leasing it back to the governmental unit.
d. Rental costs under leases which are required to be treated as capital leases under GAAP are allowable
only up to the amount (as explained in subsection b) that would be allowed had the governmental
unit purchased the property on the date the lease agreement was executed. The provisions of
Financial Accounting Standards Board Statement 13, Accounting for Leases, shall be used to
determine whether a lease is a capital lease. Interest costs related to capital leases are allowable to the
extent they meet the criteria in Attachment B, section 23. Unallowable costs include amounts paid for
profit, management fees, and taxes that would not have been incurred had the governmental unit
purchased the facility.
38.
Royalties on a patent or copyright or amortization of the cost of acquiring by purchase a copyright,
patent, or rights thereto, necessary for the proper performance of the award are allowable unless:
(1) The Federal Government has a license or the right to free use of the patent or copyright.
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(2) The patent or copyright has been adjudicated to be invalid, or has been administratively
determined to be invalid.
(3) The patent or copyright is considered to be unenforceable.
(4) The patent or copyright is expired.
b. Special care should be exercised in determining reasonableness where the royalties may have been
arrived at as a result of less-than-arm's-length bargaining, e.g.:
(1) Royalties paid to persons, including corporations, affiliated with the governmental unit.
(2) Royalties paid to unaffiliated parties, including corporations, under an agreement entered into in
contemplation that a Federal award would be made.
(3) Royalties paid under an agreement entered into after an award is made to a governmental unit.
c. In any case involving a patent or copyright formerly owned by the governmental unit, the amount of
royalty allowed should not exceed the cost which would have been allowed had the governmental
unit retained title thereto.
39. Selling and marketing. Costs of selling and marketing any products or services of the governmental unit
are unallowable (unless allowed under Attachment B, section 1. as allowable public relations costs or under
Attachment B, section 33. as allowable proposal costs.
40. Taxes,
a. Taxes that a governmental unit is legally required to pay are allowable, except for self assessed taxes
that disproportionately affect Federal programs or changes in tax policies that disproportionately
affect Federal programs. This provision becomes effective for taxes paid during the governmental
unit's first fiscal year that begins on or after January 1, 1998, and applies thereafter.
b. Gasoline taxes, motor vehicle fees, and other taxes that are in effect user fees for benefits provided to
the Federal Government are allowable.
c. This provision does not restrict the authority of Federal agencies to identify taxes where Federal
participation is inappropriate. Where the identification of the amount of unallowable taxes would
require an inordinate amount of effort, the cognizant agency may accept a reasonable approximation
thereof.
41. ]" • r •, ' • r ,, f ' Termination of awards generally gives rise to the
incurrence of costs, or the need for special treatment of costs, which would not have arisen had the Federal
award not been terminated. Cost principles covering these items are set forth below. They are to be used in
conjunction with the other provisions of this Circular in termination situations.
a. The cost of items reasonably usable on the governmental unit's other work shall not be allowable
unless the governmental unit submits evidence that it would not retain such items at cost without
sustaining a loss. In deciding whether such items are reasonably usable on other work of the
governmental unit, the awarding agency should consider the governmental unit's plans and orders for
current and scheduled activity.
Contemporaneous purchases of common items by the governmental unit shall be regarded as
evidence that such items are reasonably usable on the governmental unit's other work. Any
acceptance of common items as allocable to the terminated portion of the Federal award shall be
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limited to the extent that the quantities of such items on hand, in transit, and on order are in excess of
the reasonable quantitative requirements of other work.
b. If in a particular case, despite all reasonable efforts by the governmental unit, certain costs cannot be
discontinued immediately after the effective date of termination, such costs are generally allowable
within the limitations set forth in this Circular, except that any such costs continuing after termination
due to the negligent or willful failure of the governmental unit to discontinue such costs shall be
unallowable.
c. Loss of useful value of special tooling, machinery, and equipment is generally allowable if:
(1) Such special tooling, special machinery, or equipment is not reasonably capable of use in the
other work of the governmental unit,
(2) The interest of the Federal Government is protected by transfer of title or by other means deemed
appropriate by the awarding agency, and
(3) The loss of useful value for any one terminated Federal award is limited to that portion of the
acquisition cost which bears the same ratio to the total acquisition cost as the terminated portion of
the Federal award bears to the entire terminated Federal award and other Federal awards for which
the special tooling, machinery, or equipment was acquired.
d. Rental costs under unexpired leases are generally allowable where clearly shown to have been
reasonably necessary for the performance of the terminated Federal award less the residual value of
such leases, if:
(1) the amount of such rental claimed does not exceed the reasonable use value of the property leased
for the period of the Federal award and such further period as may be reasonable, and
(2) the governmental unit makes all reasonable efforts to terminate, assign, settle, or otherwise reduce
the cost of such lease. There also may be included the cost of alterations of such leased property,
provided such alterations were necessary for the performance of the Federal award, and of reasonable
restoration required by the provisions of the lease.
e. Settlement expenses including the following are generally allowable:
(1) Accounting, legal, clerical, and similar costs reasonably necessary for:
(a) The preparation and presentation to the awarding agency of settlement claims and
supporting data with respect to the terminated portion of the Federal award, unless the
termination is for default (see Subpart .44 of the Grants Management Common Rule
implementing OMB Circular A-102); and
(b) The termination and settlement of subawards.
(2) Reasonable costs for the storage, transportation, protection, and disposition of property provided
by the Federal Government or acquired or produced for the Federal award, except when grantees or
contractors are reimbursed for disposals at a predetermined amount in accordance with
Subparts .31 and .32 of the Grants Management Common Rule implementing OMB Circular A-
102.
f. Claims under subawards, including the allocable portion of claims which are common to the Federal
award, and to other work of the governmental unit are generally allowable.
EPA Tribal, U.S. Territories Insular Areas Administrative and Financial Guidance for Assistance Agreements
Last September 2013 224 of 519
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An appropriate share of the governmental unit's indirect expense may be allocated to the amount of
settlements with subcontractors and/or subgrantees, provided that the amount allocated is otherwise
consistent with the basic guidelines contained in Attachment A. The indirect expense so allocated
shall exclude the same and similar costs claimed directly or indirectly as settlement expenses.
42. Training costs. The cost of training provided for employee development is allowable.
43. Travel costs,
a. General. Travel costs are the expenses for transportation, lodging, subsistence, and related items
incurred by employees who are in travel status on official business of the governmental unit. Such
costs may be charged on an actual cost basis, on a per diem or mileage basis in lieu of actual costs
incurred, or on a combination of the two, provided the method used is applied to an entire trip and
not to selected days of the trip, and results in charges consistent with those normally allowed in like
circumstances in the governmental unit's non-federally sponsored activities. Notwithstanding the
provisions of Attachment B, section 19, General government expenses, travel costs of officials
covered by that section are allowable with the prior approval of an awarding agency when they are
specifically related to Federal awards.
b. Lodging and subsistence. Costs incurred by employees and officers for travel, including costs of
lodging, other subsistence, and incidental expenses, shall be considered reasonable and allowable
only to the extent such costs do not exceed charges normally allowed by the governmental unit in its
regular operations as the result of the governmental unit's written travel policy. In the absence of an
acceptable, written governmental unit policy regarding travel costs, the rates and amounts established
under subchapter I of Chapter 57, Title 5, United States Code ("Travel and Subsistence Expenses;
Mileage Allowances"), or by the Administrator of General Services, or by the President (or his or her
designee) pursuant to any provisions of such subchapter shall apply to travel under Federal awards
(48CFR31.205-46(a)).
c. Commercial air travel.
(1) Airfare costs in excess of the customary standard commercial airfare (coach or equivalent),
Federal Government contract airfare (where authorized and available), or the lowest commercial
discount airfare are unallowable except when such accommodations would:
(a) require circuitous routing;
(b) require travel during unreasonable hours;
(c) excessively prolong travel;
(d) result in additional costs that would offset the transportation savings; or
(e) offer accommodations not reasonably adequate for the traveler's medical needs. The
governmental unit must justify and document these conditions on a case-by-case basis in
order for the use of first-class airfare to be allowable in such cases.
(2) Unless a pattern of avoidance is detected, the Federal Government will generally not question a
governmental unit's determinations that customary standard airfare or other discount airfare is
unavailable for specific trips if the governmental unit can demonstrate either of the following: (a) that
such airfare was not available in the specific case; or (b) that it is the governmental unit's overall
practice to make routine use of such airfare.
d. Air travel by other than commercial carrier. Costs of travel by governmental unit-owned, -leased, or -
chartered aircraft include the cost of lease, charter, operation (including personnel costs),
maintenance, depreciation, insurance, and other related costs. The portion of such costs that exceeds
the cost of allowable commercial air travel, as provided for in subsection c., is unallowable.
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Foreign travel. Direct charges for foreign travel costs are allowable only when the travel has received
prior approval of the awarding agency. Each separate foreign trip must receive such approval. For
purposes of this provision, "foreign travel" includes any travel outside Canada, Mexico, the United
States, and any United States territories and possessions. However, the term "foreign travel" for a
governmental unit located in a foreign country means travel outside that country.
ATTACHMENT C
Circular No. A 87
STATE/LOCAL WIDE CENTRAL SERVICE COST ALLOCATION PLANS
TABLE OF CONTENTS
A. General
B. Definitions
1. Billed central services
2. Allocated central services
3. Agency or operating agency
C. Scope of the Central Service Cost Allocation Plans
D. Submission Requirements
E. Documentation Requirements for Submitted Plans
1. General
2. Allocated central services
3. Billed services
a. General
b. Internal service funds
c. Self insurance funds
d. Fringe benefits
4. Required Certification
F. Negotiation and Approval of Central Service Plans
G. Other Policies
1. Billed central service activities
2. Working capital reserves
3. Carry forward adjustments of allocated central service costs
4. Adjustments of billed central services
5. Records retention
6. Appeals
7. OMB assistance
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A. (ien era I.
1. Most governmental units provide certain services, such as motor pools, computer centers, purchasing,
accounting, etc., to operating agencies on a centralized basis. Since federally supported awards are performed
within the individual operating agencies, there needs to be a process whereby these central service costs can
be identified and assigned to benefitted activities on a reasonable and consistent basis. The central service
cost allocation plan provides that process. All costs and other data used to distribute the costs included in the
plan should be supported by formal accounting and other records that will support the propriety of the costs
assigned to Federal awards.
2. Guidelines and illustrations of central service cost allocation plans are provided in a brochure published by
the Department of Health and Human Services entitled "A Guide for State and Local Government Agencies:
Cost Principles and Procedures for Establishing Cost Allocation Plans and Indirect Cost Rates for Grants and
Contracts with the Federal Government." A copy of this brochure may be obtained from the Superintendent
of Documents, U.S. Government Printing Office.
B. Definitions,
1. "Billed central services" means central services that are billed to benefitted agencies and/or programs on an
individual fee for service or similar basis. Typical examples of billed central services include computer
services, transportation services, insurance, and fringe benefits.
2. "Allocated central services" means central services that benefit operating agencies but are not billed to the
agencies on a fee for service or similar basis. These costs are allocated to benefitted agencies on some
reasonable basis. Examples of such services might include general accounting, personnel administration,
purchasing, etc.
3. "Agency or operating agency" means an organizational unit or sub division within a governmental unit that
is responsible for the performance or administration of awards or activities of the governmental unit.
C. Scope of the Central Service Cost Allocation Plans, The central service cost allocation plan will include
all central service costs that will be claimed (either as a billed or an allocated cost) under Federal awards and
will be documented as described in section E. Costs of central services omitted from the plan will not be
reimbursed.
D. , , .
1. Each State will submit a plan to the Department of Health and Human Services for each year in which it
claims central service costs under Federal awards. The plan should include (a) a projection of the next year's
allocated central service cost (based either on actual costs for the most recently completed year or the budget
projection for the coming year), and (b) a reconciliation of actual allocated central service costs to the
estimated costs used for either the most recently completed year or the year immediately preceding the most
recently completed year.
2. Each local government that has been designated as a "major local government" by the Office of
Management and Budget (OMB) is also required to submit a plan to its cognizant agency annually. OMB
periodically lists major local governments in the Federal Register.
3. All other local governments claiming central service costs must develop a plan in accordance with the
requirements described in this Circular and maintain the plan and related supporting documentation for audit.
These local governments are not required to submit their plans for Federal approval unless they are
specifically requested to do so by the cognizant agency. Where a local government only receives funds as a
sub recipient, the primary recipient will be responsible for negotiating indirect cost rates and/or monitoring
the sub recipient's plan.
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4. All central service cost allocation plans will be prepared and, when required, submitted within six months
prior to the beginning of each of the governmental unit's fiscal years in which it proposes to claim central
service costs. Extensions may be granted by the cognizant agency on a case by case basis.
E. Documentation Requirements for Submitted Plans. The documentation requirements described in this
section may be modified, expanded, or reduced by the cognizant agency on a case by case basis. For
example, the requirements may be reduced for those central services which have little or no impact on
Federal awards. Conversely, if a review of apian indicates that certain additional information is needed, and
will likely be needed in future years, it may be routinely requested in future plan submissions. Items marked
with an asterisk (*) should be submitted only once; subsequent plans should merely indicate any changes
since the last plan.
1. General. All proposed plans must be accompanied by the following: an organization chart sufficiently
detailed to show operations including the central service activities of the State/local government whether or
not they are shown as benefiting from central service functions; a copy of the Comprehensive Annual
Financial Report (or a copy of the Executive Budget if budgeted costs are being proposed) to support the
allowable costs of each central service activity included in the plan; and, a certification (see subsection 4.)
that the plan was prepared in accordance with this Circular, contains only allowable costs, and was prepared
in a manner that treated similar costs consistently among the various Federal awards and between Federal and
non Federal awards/activities.
2. Allocated central services. For each allocated central service, the plan must also include the following: a
brief description of the service*, an identification of the unit rendering the service and the operating agencies
receiving the service, the items of expense included in the cost of the service, the method used to distribute
the cost of the service to benefitted agencies, and a summary schedule showing the allocation of each service
to the specific benefitted agencies. If any self insurance funds or fringe benefits costs are treated as allocated
(rather than billed) central services, documentation discussed in subsections 3.b. and c. shall also be included.
3. Billed services.
a. a. General. The information described below shall be provided for all billed central services,
including internal service funds, self insurance funds, and fringe benefit funds.
b. Internal service funds.
(1) For each internal service fund or similar activity with an operating budget of $5 million or more,
the plan shall include: a brief description of each service; a balance sheet for each fund based on
individual accounts contained in the governmental unit's accounting system; a revenue/expenses
statement, with revenues broken out by source, e.g., regular billings, interest earned, etc.; a listing of
all non operating transfers (as defined by Generally Accepted Accounting Principles (GAAP)) into
and out of the fund; a description of the procedures (methodology) used to charge the costs of each
service to users, including how billing rates are determined; a schedule of current rates; and, a
schedule comparing total revenues (including imputed revenues) generated by the service to the
allowable costs of the service, as determined under this Circular, with an explanation of how
variances will be handled.
(2) Revenues shall consist of all revenues generated by the service, including unbilled and
uncollected revenues. If some users were not billed for the services (or were not billed at the full rate
for that class of users), a schedule showing the full imputed revenues associated with these users
shall be provided. Expenses shall be broken out by object cost categories (e.g., salaries, supplies,
etc.).
c. Self insurance funds. For each self insurance fund, the plan shall include: the fund balance sheet; a
statement of revenue and expenses including a summary of billings and claims paid by agency; a
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listing of all non operating transfers into and out of the fund; the type(s) of risk(s) covered by the
fund (e.g., automobile liability, workers' compensation, etc.); an explanation of how the level of fund
contributions are determined, including a copy of the current actuarial report (with the actuarial
assumptions used) if the contributions are determined on an actuarial basis; and, a description of the
procedures used to charge or allocate fund contributions to benefitted activities. Reserve levels in
excess of claims (1) submitted and adjudicated but not paid, (2) submitted but not adjudicated, and
(3) incurred but not submitted must be identified and explained.
d. Fringe benefits. For fringe benefit costs, the plan shall include: a listing of fringe benefits provided to
covered employees, and the overall annual cost of each type of benefit; current fringe benefit
policies*; and procedures used to charge or allocate the costs of the benefits to benefitted activities.
In addition, for pension and post retirement health insurance plans, the following information shall be
provided: the governmental unit's funding policies, e.g., legislative bills, trust agreements, or State
mandated contribution rules, if different from actuarially determined rates; the pension plan's costs
accrued for the year; the amount funded, and date(s) of funding; a copy of the current actuarial report
(including the actuarial assumptions); the plan trustee's report; and, a schedule from the activity
showing the value of the interest cost associated with late funding.
4. Required certification. Each central service cost allocation plan will be accompanied by a certification in
the following form:
CERTIFICATE OF COST ALLOCATION PLAN
This is to certify that I have reviewed the cost allocation plan submitted herewith and to the best of my
knowledge and belief:
(1) All costs included in this proposal [identify date] to establish cost allocations or billings for [identify
period covered by plan] are allowable in accordance with the requirements of OMB Circular A 87, "Cost
Principles for State, Local, and Indian Tribal Governments," and the Federal award(s) to which they apply.
Unallowable costs have been adjusted for in allocating costs as indicated in the cost allocation plan.
(2) All costs included in this proposal are properly allocable to Federal awards on the basis of a beneficial or
causal relationship between the expenses incurred and the awards to which they are allocated in accordance
with applicable requirements. Further, the same costs that have been treated as indirect costs have not been
claimed as direct costs. Similar types of costs have been accounted for consistently.
I declare that the foregoing is true and correct.
Governmental Unit:
Signature:
Name of Official:
Title:
Date of Execution:
F. Negotiation and Approval of Central Service Plans.
1. All proposed central service cost allocation plans that are required to be submitted will be reviewed,
negotiated, and approved by the Federal cognizant agency on a timely basis. The cognizant agency will
review the proposal within six months of receipt of the proposal and either negotiate/approve the proposal or
advise the governmental unit of the additional documentation needed to support/evaluate the proposed plan or
the changes required to make the proposal acceptable. Once an agreement with the governmental unit has
been reached, the agreement will be accepted and used by all Federal agencies, unless prohibited or limited
by statute. Where a Federal funding agency has reason to believe that special operating factors affecting its
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awards necessitate special consideration, the funding agency will, prior to the time the plans are negotiated,
notify the cognizant agency.
2. The results of each negotiation shall be formalized in a written agreement between the cognizant agency
and the governmental unit. This agreement will be subject to re opening if the agreement is subsequently
found to violate a statute or the information upon which the plan was negotiated is later found to be
materially incomplete or inaccurate. The results of the negotiation shall be made available to all Federal
agencies for their use.
3. Negotiated cost allocation plans based on a proposal later found to have included costs that: (a) are
unallowable (i) as specified by law or regulation, (ii) as identified in Attachment B of this Circular, or (iii) by
the terms and conditions of Federal awards, or (b) are unallowable because they are clearly not allocable to
Federal awards, shall be adjusted, or a refund shall be made at the option of the Federal cognizant agency.
These adjustments or refunds are designed to correct the plans and do not constitute a reopening of the
negotiation.
G.
1. Billed central service activities. Each billed central service activity must separately account for all
revenues (including imputed revenues) generated by the service, expenses incurred to furnish the service, and
profit/loss.
2. Working capital reserves. Internal service funds are dependent upon a reasonable level of working capital
reserve to operate from one billing cycle to the next. Charges by an internal service activity to provide for the
establishment and maintenance of a reasonable level of working capital reserve, in addition to the full
recovery of costs, are allowable. A working capital reserve as part of retained earnings of up to 60 days cash
expenses for normal operating purposes is considered reasonable. A working capital reserve exceeding 60
days may be approved by the cognizant Federal agency in exceptional cases.
3. Carry forward adjustments of allocated central service costs. Allocated central service costs are usually
negotiated and approved for a future fiscal year on a "fixed with carry forward" basis. Under this procedure,
the fixed amounts for the future year covered by agreement are not subject to adjustment for that year.
However, when the actual costs of the year involved become known, the differences between the fixed
amounts previously approved and the actual costs will be carried forward and used as an adjustment to the
fixed amounts established for a later year. This "carry forward" procedure applies to all central services
whose costs were fixed in the approved plan. However, a carry forward adjustment is not permitted, for a
central service activity that was not included in the approved plan, or for unallowable costs that must be
reimbursed immediately.
4. Adjustments of billed central services. Billing rates used to charge Federal awards shall be based on the
estimated costs of providing the services, including an estimate of the allocable central service costs. A
comparison of the revenue generated by each billed service (including total revenues whether or not billed or
collected) to the actual allowable costs of the service will be made at least annually, and an adjustment will
be made for the difference between the revenue and the allowable costs. These adjustments will be made
through one of the following adjustment methods: (a) a cash refund to the Federal Government for the
Federal share of the adjustment, (b) credits to the amounts charged to the individual programs, (c)
adjustments to future billing rates, or (d) adjustments to allocated central service costs. Adjustments to
allocated central services will not be permitted where the total amount of the adjustment for a particular
service (Federal share and non Federal) share exceeds $500,000.
5. Records retention. All central service cost allocation plans and related documentation used as a basis for
claiming costs under Federal awards must be retained for audit in accordance with the records retention
requirements contained in the Common Rule.
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6. Appeals. If a dispute arises in the negotiation of a plan between the cognizant agency and the governmental
unit, the dispute shall be resolved in accordance with the appeals procedures of the cognizant agency.
7. OMB assistance. To the extent that problems are encountered among the Federal agencies and/or
governmental units in connection with the negotiation and approval process, OMB will lend assistance, as
required, to resolve such problems in a timely manner.
ATTACHMENT D
Circular No. A 87
PUBLIC ASSISTANCE COST ALLOCATION PLANS
TABLE OF CONTENTS
A. General
B. Definitions
1. State public assistance agency
2. State public assistance agency costs
C. Policy
D. Submission, Documentation, and Approval of Public Assistance Cost Allocation Plans
E. Review of Implementation of Approved Plans
F. Unallowable Costs
A. Federally financed programs administered by State public assistance agencies are funded
predominately by the Department of Health and Human Services (HHS). In support of its stewardship
requirements, HHS has published requirements for the development, documentation, submission, negotiation,
and approval of public assistance cost allocation plans in Subpart E of 45 CFR Part 95. All administrative
costs (direct and indirect) are normally charged to Federal awards by implementing the public assistance cost
allocation plan. This Attachment extends these requirements to all Federal agencies whose programs are
administered by a State public assistance agency. Major federally financed programs typically administered
by State public assistance agencies include: Temporary Assistance to Needy Families (TANF), Medicaid,
Food Stamps, Child Support Enforcement, Adoption Assistance and Foster Care, and Social Services Block
Grant.
B.
1. "State public assistance agency" means a State agency administering or supervising the administration of
one or more public assistance programs operated by the State as identified in Subpart E of 45 CFR Part 95.
For the purpose of this Attachment, these programs include all programs administered by the State public
assistance agency.
2. "State public assistance agency costs" means all costs incurred by, or allocable to, the State public
assistance agency, except expenditures for financial assistance, medical vendor
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payments, food stamps, and payments for services and goods provided directly to program recipients.
C. State public assistance agencies will develop, document and implement, and the Federal
Government will review, negotiate, and approve, public assistance cost allocation plans in accordance with
Subpart E of 45 CFR Part 95. The plan will include all programs administered by the State public assistance
agency. Where a letter of approval or disapproval is transmitted to a State public assistance agency in
accordance with Subpart E, the letter will apply to all Federal agencies and programs. The remaining sections
of this Attachment (except for the requirement for certification) summarize the provisions of Subpart E of 45
CFR Part 95.
D. .;.-,.• ' .-.-, . . .• • . '.., . .. ', ..-.., • . ".;. . '• -. • ''. . • - '.., ..'•-.
1. State public assistance agencies are required to promptly submit amendments to the cost allocation plan to
FiHS for review and approval.
2. Under the coordination process outlined in subsection E, affected Federal agencies will review all new
plans and plan amendments and provide comments, as appropriate, to FiHS. The effective date of the plan or
plan amendment will be the first day of the quarter following the submission of the plan or amendment,
unless another date is specifically approved by FiHS. HHS, as the cognizant agency acting on behalf of all
affected Federal agencies, will, as necessary, conduct negotiations with the State public assistance agency
and will inform the State agency of the action taken on the plan or plan amendment.
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J_J . i • . .' : • ' f '. f' •• : •.:.••: ? • , • , .-•••;'••.• L ; • • ! •••*:. 1 " .• :. It .• '
1. Since public assistance cost allocation plans are of a narrative nature, the review during the plan approval
process consists of evaluating the appropriateness of the proposed groupings of costs (cost centers) and the
related allocation bases. As such, the Federal Government needs some assurance that the cost allocation plan
has been implemented as approved. This is accomplished by reviews by the funding agencies, single audits,
or audits conducted by the cognizant audit agency.
2. Where inappropriate charges affecting more than one funding agency are identified, the cognizant HHS
cost negotiation office will be advised and will take the lead in resolving the issue(s) as provided for in
Subpart E of 45 CFR Part 95.
3. If a dispute arises in the negotiation of a plan or from a disallowance involving two or more funding
agencies, the dispute shall be resolved in accordance with the appeals procedures set out in 45 CFR Part 75.
Disputes involving only one funding agency will be resolved in accordance with the funding agency's appeal
process.
4. To the extent that problems are encountered among the Federal agencies and/or governmental units in
connection with the negotiation and approval process, the Office of Management and Budget will lend
assistance, as required, to resolve such problems in a timely manner.
F. ! 'tiallem-ablL' CVwrv Claims developed under approved cost allocation plans will be based on allowable
costs as identified in this Circular. Where unallowable costs have been claimed and reimbursed, they will be
refunded to the program that reimbursed the unallowable cost using one of the following methods: (a) a cash
refund, (b) offset to a subsequent claim, or (c) credits to the amounts charged to individual awards.
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ATTACHMENT E
Circular No. A 87
STATE AND LOCAL INDIRECT COST RATE PROPOSALS
TABLE OF CONTENTS
A. General
B. Definitions
1. Indirect cost rate proposal
2. Indirect cost rate
3. Indirect cost pool
4. Base
5. Predetermined rate
6. Fixed rate
7. Provisional rate
8. Final rate
9. Base period
C. Allocation of Indirect Costs and Determination of Indirect Cost Rates
1. General
2. Simplified method
3. Multiple allocation base method
4. Special indirect cost rates
D. Submission and Documentation of Proposals
1. Submission of indirect cost rate proposals
2. Documentation of proposals
3. Required certification
E. Negotiation and Approval of Rates
F. Other Policies
1. Fringe benefit rates
2. Billed services provided by the grantee agency
3. Indirect cost allocations not using rates
4. Appeals
5. Collections of unallowable costs and erroneous payments
6. OMB assistance
A. (ten era I.
1. Indirect costs are those that have been incurred for common or joint puroses. These costs benefit more than
one cost objective and cannot be readily identified with a particular final cost objective without effort
disproportionate to the results achieved. After direct costs have been determined and assigned directly to
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Federal awards and other activities as appropriate, indirect costs are those remaining to be allocated to
benefitted cost objectives. A cost may not be allocated to a Federal award as an indirect cost if any other cost
incurred for the same purpose, in like circumstances, has been assigned to a Federal award as a direct cost.
2. Indirect costs include (a) the indirect costs originating in each department or agency of the governmental
unit carrying out Federal awards and (b) the costs of central governmental services distributed through the
central service cost allocation plan (as described in Attachment C) and not otherwise treated as direct costs.
3. Indirect costs are normally charged to Federal awards by the use of an indirect cost rate. A separate
indirect cost rate(s) is usually necessary for each department or agency of the governmental unit claiming
indirect costs under Federal awards. Guidelines and illustrations of indirect cost proposals are provided in a
brochure published by the Department of Health and Human Services entitled "A Guide for State and Local
Government Agencies: Cost Principles and Procedures for Establishing Cost Allocation Plans and Indirect
Cost Rates for Grants and Contracts with the Federal Government." A copy of this brochure may be obtained
from the Superintendent of Documents, U.S. Government Printing Office.
4. Because of the diverse characteristics and accounting practices of governmental units, the types of costs
which may be classified as indirect costs cannot be specified in all situations. However, typical examples of
indirect costs may include certain State/local wide central service costs, general administration of the grantee
department or agency, accounting and personnel services performed within the grantee department or agency,
depreciation or use allowances on buildings and equipment, the costs of operating and maintaining facilities,
etc.
5. This Attachment does not apply to State public assistance agencies. These agencies should refer instead to
Attachment D.
B.
1. "Indirect cost rate proposal" means the documentation prepared by a governmental unit or subdivision
thereof to substantiate its request for the establishment of an indirect cost rate.
2. "Indirect cost rate" is 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.
3. "Indirect cost pool" is the accumulated costs that jointly benefit two or more programs or other cost
objectives.
4. "Base" means the accumulated direct costs (normally either total direct salaries and wages or total direct
costs exclusive of any extraordinary or distorting expenditures) used to distribute indirect costs to individual
Federal awards. The direct cost base selected should result in each award bearing a fair share of the indirect
costs in reasonable relation to the benefits received from the costs.
5. "Predetermined rate" means an indirect cost rate, applicable to a specified current or future period, usually
the governmental unit's fiscal year. This rate is based on an estimate of the costs to be incurred during the
period. Except under very unusual circumstances, a predetermined rate is not subject to adjustment. (Because
of legal constraints, predetermined rates are not permitted for Federal contracts; they may, however, be used
for grants or cooperative agreements.) Predetermined rates may not be used by governmental units that have
not submitted and negotiated the rate with the cognizant agency. In view of the potential advantages offered
by this procedure, negotiation of predetermined rates for indirect costs for a period of two to four years
should be the norm in those situations where the cost experience and other pertinent facts available are
deemed sufficient to enable the parties involved to reach an informed judgment as to the probable level of
indirect costs during the ensuing accounting periods.
6. "Fixed rate" means an indirect cost rate which has the same characteristics as a predetermined rate, except
that the difference between the estimated costs and the actual, allowable costs of the period covered by the
rate is carried forward as an adjustment to the rate computation of a subsequent period.
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7. "Provisional rate" means a temporary indirect cost rate applicable to a specified period which is used for
funding, interim reimbursement, and reporting indirect costs on Federal awards pending the establishment of
a "final" rate for that period.
8. "Final rate" means an indirect cost rate applicable to a specified past period which is based on the actual
allowable costs of the period. A final audited rate is not subject to adjustment.
9. "Base period" for the allocation of indirect costs is the period in which such costs are incurred and
accumulated for allocation to activities performed in that period. The base period normally should coincide
with the governmental unit's fiscal year, but in any event, shall be so selected as to avoid inequities in the
allocation of costs.
1. General.
a. Where a governmental unit's department or agency has only one major function, or where all its
major functions benefit from the indirect costs to approximately the same degree, the allocation of
indirect costs and the computation of an indirect cost rate may be accomplished through simplified
allocation procedures as described in subsection 2.
b. Where a governmental unit's department or agency has several major functions which benefit from its
indirect costs in varying degrees, the allocation of indirect costs may require the accumulation of
such costs into separate cost groupings which then are allocated individually to benefitted functions
by means of a base which best measures the relative degree of benefit. The indirect costs allocated to
each function are then distributed to individual awards and other activities included in that function
by means of an indirect cost rate(s).
c. Specific methods for allocating indirect costs and computing indirect cost rates along with the
conditions under which each method should be used are described in subsections 2, 3 and 4.
2. Simplified method.
a. Where a grantee agency's major functions benefit from its indirect costs to approximately the same
degree, the allocation of indirect costs may be accomplished by (1) classifying the grantee agency's
total costs for the base period as either direct or indirect, and (2) dividing the total allowable indirect
costs (net of applicable credits) by an equitable distribution base. The result of this process is an
indirect cost rate which is used to distribute indirect costs to individual Federal awards. The rate
should be expressed as the percentage which the total amount of allowable indirect costs bears to the
base selected. This method should also be used where a governmental unit's department or agency
has only one major function encompassing a number of individual projects or activities, and may be
used where the level of Federal awards to that department or agency is relatively small.
b. Both the direct costs and the indirect costs shall exclude capital expenditures and unallowable costs.
However, unallowable costs must be included in the direct costs if they represent activities to which
indirect costs are properly allocable.
c. The distribution base may be (1) total direct costs (excluding capital expenditures and other distorting
items, such as pass through funds, major subcontracts, etc.), (2) direct salaries and wages, or (3)
another base which results in an equitable distribution.
3. Multiple allocation base method.
a. Where a grantee agency's indirect costs benefit its major functions in varying degrees, such costs
shall be accumulated into separate cost groupings. Each grouping shall then be allocated individually
to benefitted functions by means of a base which best measures the relative benefits.
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b. The cost groupings should be established so as to permit the allocation of each grouping on the basis
of benefits provided to the major functions. Each grouping should constitute a pool of expenses that
are of like character in terms of the functions they benefit and in terms of the allocation base which
best measures the relative benefits provided to each function. The number of separate groupings
should be held within practical limits, taking into consideration the materiality of the amounts
involved and the degree of precision needed.
c. Actual conditions must be taken into account in selecting the base to be used in allocating the
expenses in each grouping to benefitted functions. When an allocation can be made by assignment of
a cost grouping directly to the function benefitted, the allocation shall be made in that manner. When
the expenses in a grouping are more general in nature, the allocation should be made through the use
of a selected base which produces results that are equitable to both the Federal Government and the
governmental unit. In general, any cost element or related factor associated with the governmental
unit's activities is potentially adaptable for use as an allocation base provided that: (1) it can readily
be expressed in terms of dollars or other quantitative measures (total direct costs, direct salaries and
wages, staff hours applied, square feet used, hours of usage, number of documents processed,
population served, and the like), and (2) it is common to the benefitted functions during the base
period.
d. Except where a special indirect cost rate(s) is required in accordance with subsection 4, the separate
groupings of indirect costs allocated to each major function shall be aggregated and treated as a
common pool for that function. The costs in the common pool shall then be distributed to individual
Federal awards included in that function by use of a single indirect cost rate.
e. The distribution base used in computing the indirect cost rate for each function may be (1) total direct
costs (excluding capital expenditures and other distorting items such as pass through funds, major
subcontracts, etc.), (2) direct salaries and wages, or (3) another base which results in an equitable
distribution. An indirect cost rate should be developed for each separate indirect cost pool developed.
The rate in each case should be stated as the percentage relationship between the particular indirect
cost pool and the distribution base identified with that pool.
4. Special indirect cost rates.
a. In some instances, a single indirect cost rate for all activities of a grantee department or agency or for
each major function of the agency may not be appropriate. It may not take into account those
different factors which may substantially affect the indirect costs applicable to a particular program
or group of programs. The factors may include the physical location of the work, the level of
administrative support required, the nature of the facilities or other resources employed, the
organizational arrangements used, or any combination thereof. When a particular award is carried out
in an environment which appears to generate a significantly different level of indirect costs,
provisions should be made for a separate indirect cost pool applicable to that award. The separate
indirect cost pool should be developed during the course of the regular allocation process, and the
separate indirect cost rate resulting therefrom should be used, provided that: (1) the rate differs
significantly from the rate which would have been developed under subsections 2. and 3., and (2) the
award to which the rate would apply is material in amount.
b. Although this Circular adopts the concept of the full allocation of indirect costs, there are some
Federal statutes which restrict the reimbursement of certain indirect costs. Where such restrictions
exist, it may be necessary to develop a special rate for the affected award. Where a "restricted rate" is
required, the procedure for developing a non restricted rate will be used except for the additional step
of the elimination from the indirect cost pool those costs for which the law prohibits reimbursement.
EPA Tribal, U.S. Territories Insular Areas Administrative and Financial Guidance for Assistance Agreements
Last September 2013 238 of 519
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D. Submission and Documentation of Proposals,
1. Submission of indirect cost rate proposals.
a. All departments or agencies of the governmental unit desiring to claim indirect costs under Federal
awards must prepare an indirect cost rate proposal and related documentation to support those costs.
The proposal and related documentation must be retained for audit in accordance with the records
retention requirements contained in the Common Rule.
b. A governmental unit for which a cognizant agency assignment has been specifically designated must
submit its indirect cost rate proposal to its cognizant agency. The Office of Management and Budget
(OMB) will periodically publish lists of governmental units identifying the appropriate Federal
cognizant agencies. The cognizant agency for all governmental units or agencies not identified by
OMB will be determined based on the Federal agency providing the largest amount of Federal funds.
In these cases, a governmental unit must develop an indirect cost proposal in accordance with the
requirements of this Circular and maintain the proposal and related supporting documentation for
audit. These governmental units are not required to submit their proposals unless they are specifically
requested to do so by the cognizant agency. Where a local government only receives funds as a sub
recipient, the primary recipient will be responsible for negotiating and/or monitoring the sub
recipient's plan.
c. Each Indian tribal government desiring reimbursement of indirect costs must submit its indirect cost
proposal to the Department of the Interior (its cognizant Federal agency).
d. Indirect cost proposals must be developed (and, when required, submitted) within six months after
the close of the governmental unit's fiscal year, unless an exception is approved by the cognizant
Federal agency. If the proposed central service cost allocation plan for the same period has not been
approved by that time, the indirect cost proposal may be prepared including an amount for central
services that is based on the latest federally approved central service cost allocation plan. The
difference between these central service amounts and the amounts ultimately approved will be
compensated for by an adjustment in a subsequent period.
2. Documentation of proposals. The following shall be included with each indirect cost proposal:
a. The rates proposed, including subsidiary work sheets and other relevant data, cross referenced and
reconciled to the financial data noted in subsection b. Allocated central service costs will be
supported by the summary table included in the approved central service cost allocation plan. This
summary table is not required to be submitted with the indirect cost proposal if the central service
cost allocation plan for the same fiscal year has been approved by the cognizant agency and is
available to the funding agency.
b. A copy of the financial data (financial statements, comprehensive annual financial report, executive
budgets, accounting reports, etc.) upon which the rate is based. Adjustments resulting from the use of
unaudited data will be recognized, where appropriate, by the Federal cognizant agency in a
subsequent proposal.
c. The approximate amount of direct base costs incurred under Federal awards. These costs should be
broken out between salaries and wages and other direct costs.
d. A chart showing the organizational structure of the agency during the period for which the proposal
applies, along with a functional statement(s) noting the duties and/or responsibilities of all units that
comprise the agency. (Once this is submitted, only revisions need be submitted with subsequent
proposals.)
3. Required certification. Each indirect cost rate proposal shall be accompanied by a certification in the
following form:
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CERTIFICATE OF INDIRECT COSTS
This is to certify that I have reviewed the indirect cost rate proposal submitted herewith and to the best of my
knowledge and belief:
(1) All costs included in this proposal [identify date] to establish billing or final indirect costs rates for
[identify period covered by rate] are allowable in accordance with the requirements of the Federal award(s) to
which they apply and OMB Circular A 87, "Cost Principles for State, Local, and Indian Tribal
Governments." Unallowable costs have been adjusted for in allocating costs as indicated in the cost allocation
plan.
(2) All costs included in this proposal are properly allocable to Federal awards on the basis of a beneficial or
causal relationship between the expenses incurred and the agreements to which they are allocated in
accordance with applicable requirements. Further, the same costs that have been treated as indirect costs have
not been claimed as direct costs. Similar types of costs have been accounted for consistently and the Federal
Government will be notified of any accounting changes that would affect the predetermined rate.
I declare that the foregoing is true and correct.
Governmental Unit:
Signature:
Name of Official:
Title:
Date of Execution:
E. Negotiation and Approval of Rates.
1. Indirect cost rates will be reviewed, negotiated, and approved by the cognizant Federal agency on a timely
basis. Once a rate has been agreed upon, it will be accepted and used by all Federal agencies unless
prohibited or limited by statute. Where a Federal funding agency has reason to believe that special operating
factors affecting its awards necessitate special indirect cost rates, the funding agency will, prior to the time
the rates are negotiated, notify the cognizant Federal agency.
2. The use of predetermined rates, if allowed, is encouraged where the cognizant agency has reasonable
assurance based on past experience and reliable projection of the grantee agency's costs, that the rate is not
likely to exceed a rate based on actual costs. Long term agreements utilizing predetermined rates extending
over two or more years are encouraged, where appropriate.
3. The results of each negotiation shall be formalized in a written agreement between the cognizant agency
and the governmental unit. This agreement will be subject to re opening if the agreement is subsequently
found to violate a statute, or the information upon which the plan was negotiated is later found to be
materially incomplete or inaccurate. The agreed upon rates shall be made available to all Federal agencies for
their use.
4. Refunds shall be made if proposals are later found to have included costs that (a) are unallowable (i) as
specified by law or regulation, (ii) as identified in Attachment B of this Circular, or (iii) by the terms and
conditions of Federal awards, or (b) are unallowable because they are clearly not allocable to Federal awards.
These adjustments or refunds will be made regardless of the type of rate negotiated (predetermined, final,
fixed, or provisional).
F. Other Policies.
1. Fringe benefit rates. If overall fringe benefit rates are not approved for the governmental unit as part of the
central service cost allocation plan, these rates will be reviewed, negotiated and approved for individual
grantee agencies during the indirect cost negotiation process. In these cases, a proposed fringe benefit rate
-------
computation should accompany the indirect cost proposal. If fringe benefit rates are not used at the grantee
agency level (i.e., the agency specifically identifies fringe benefit costs to individual employees), the
governmental unit should so advise the cognizant agency.
2. Billed services provided by the grantee agency. In some cases, governmental units provide and bill for
services similar to those covered by central service cost allocation plans (e.g., computer centers). Where this
occurs, the governmental unit should be guided by the requirements in Attachment C relating to the
development of billing rates and documentation requirements, and should advise the cognizant agency of any
billed services. Reviews of these types of services (including reviews of costing/billing methodology, profits
or losses, etc.) will be made on a case by case basis as warranted by the circumstances involved.
3. Indirect cost allocations not using rates. In certain situations, a governmental unit, because of the nature of
its awards, may be required to develop a cost allocation plan that distributes indirect (and, in some cases,
direct) costs to the specific funding sources. In these cases, a narrative cost allocation methodology should be
developed, documented, maintained for audit, or submitted, as appropriate, to the cognizant agency for
review, negotiation, and approval.
4. Appeals. If a dispute arises in a negotiation of an indirect cost rate (or other rate) between the cognizant
agency and the governmental unit, the dispute shall be resolved in accordance with the appeals procedures of
the cognizant agency.
5. Collection of unallowable costs and erroneous payments. Costs specifically identified as unallowable and
charged to Federal awards either directly or indirectly will be refunded (including interest chargeable in
accordance with applicable Federal agency regulations).
6. OMB assistance. To the extent that problems are encountered among the Federal agencies and/or
governmental units in connection with the negotiation and approval process, OMB will lend assistance, as
required, to resolve such problems in a timely manner.
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.,' -
http://www.whitehouse.gov/sites/default/files/omb/assets/al33/al33 revised 2007.pdf
Circular No. A-133 Revised to show changes published in the Federal
Register June 27, 2003 and June 26, 2007
Audits of States, Local Governments, and Non-Profit Organizations
Accompanying Federal Register Materials:
— Audits of States, Local Governments, and Non-Profit Organizations June 30, 1 997
— Revision published June 27, 2003
This revision: (1) increased the dollar threshold for the audit requirement; and (2) made
changes regarding determination of cognizant and oversight agencies for audit.
- - Revision published June 26, 2007
This revision: (1) replaced the term "reportable conditions" with "significant deficiencies" to
conform with current auditing standards; and (2) updated report submission requirements.
Definition of "significant deficiencies" and "material weaknesses" are as defined in generally
accepted auditing standards issued by the American Institute of Certified Public Accountants
(AICPA) and Government Auditing Standards issued by the Government Accountability Office.
[Note: The June 27, 2003 revisions: (1) increased the dollar threshold for the audit requirement, and (2) made
changes regarding determination of cognizant and oversight agencies for audit. The June 26, 2007 revisions
make changes to (1) to replace the terms "reportable conditions" with "significant deficiencies" to conform
with changes in auditing standards; and (2) reporting submission requirements.
In several places, the Circular includes guidelines for the reporting of "significant deficiencies" and "material
weaknesses." These terms are to be used as defined in generally accepted auditing standards issued by the
American Institute of Certified Public Accountants (AICPA), and Government Auditing Standards issued by the
Government Accountability Office.]
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Circular No. A-133
Revised to show changes published in the Federal Registers
of June 27, 2003 and June 26, 2007
Audits of States, Local Governments, and Non-Profit Organizations
TO THE HEADS OF EXECUTIVE DEPARTMENTS AND ESTABLISHMENTS
SUBJECT: Audits of States, Local Governments, and Non-Profit Organizations
1. Purpose. This Circular is issued pursuant to the Single Audit Act of
1984, P.L. 98-502, and the Single Audit Act Amendments of 1996, P.L. 104-156.
It sets forth standards for obtaining consistency and uniformity among Federal
agencies for the audit of States, local governments, and non-profit
organizations expending Federal awards.
2. Authority. Circular A-133 is issued under the authority of sections
503, 1111,and 7501 et seq. of title 31, United States Code, and Executive
Orders 8248 and 11541.
3. Rescission and Supersession. This Circular rescinds Circular A-128,
"Audits of State and Local Governments," issued April 12, 1985, and supersedes
the prior Circular A-133, "Audits of Institutions of Higher Education and
Other Non-Profit Institutions," issued April 22, 1996. For effective dates,
see paragraph 10.
4. Policy. Except as provided herein, the standards set forth in this
Circular shall be applied by all Federal agencies. If any statute
specifically prescribes policies or specific requirements that differ from the
standards provided herein, the provisions of the subsequent statute shall
govern.
Federal agencies shall apply the provisions of the sections of this
Circular to non-Federal entities, whether they are recipients expending
Federal awards received directly from Federal awarding agencies, or are
subrecipients expending Federal awards received from a pass-through entity (a
recipient or another subrecipient).
This Circular does not apply to non-U.S. based entities expending
Federal awards received either directly as a recipient or indirectly as a
subrecipient.
5. Definitions. The definitions of key terms used in this Circular are
contained in § .105 in the Attachment to this Circular.
6. Required Action. The specific requirements and responsibilities of
Federal agencies and non-Federal entities are set forth in the Attachment to
this Circular. Federal agencies
making awards to non-Federal entities, either directly or indirectly, shall
adopt the language in the Circular in codified regulations as provided in
Section 10 (below), unless different provisions are required by Federal
statute or are approved by the Office of Management and Budget (OMB).
7. OMB Responsibilities . OMB will review Federal agency regulations and
implementation of this Circular, and will provide interpretations of policy
requirements and assistance to ensure uniform, effective and efficient
implementation.
8. Information Contact. Further information concerning Circular A-133 may
be obtained by contacting the Financial Standards and Reporting Branch, Office
of Federal Financial Management, Office of Management and Budget, Washington,
DC 20503, telephone (202) 395-3993.
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9. Review Date. This Circular will have a policy review three years from
the date of issuance.
10. Effective Dates. The standards set forth in § .400 of the Attachment
to this Circular, which apply directly to Federal agencies, shall be effective
July 1, 1996, and shall apply to audits of fiscal years beginning after June
30, 1996, except as otherwise specified in § .400 (a) .
The standards set forth in this Circular that Federal agencies shall
apply to non-Federal entities shall be adopted by Federal agencies in codified
regulations not later than 60 days after publication of this final revision
in the Federal Register, so that they will apply to audits of fiscal years
beginning after June 30, 1996, with the exception that § . 305(b) of the
Attachment applies to audits of fiscal years beginning after June 30, 1998.
The requirements of Circular A-128, although the Circular is rescinded, and
the 1990 version of Circular A-133 remain in effect for audits of fiscal years
beginning on or before June 30, 1996.
The revisions published in the Federal Register June 27, 2003, are
effective for fiscal years ending after December 31, 2003, and early
implementation is not permitted with the exception of the definition of
oversight agency for audit which is effective July 28, 2003.
Augustine T. Smythe
Acting Director
The revisions published in the Federal Register June 26, 2OO7, are
effective for fiscal years ending on or after December 15, 2006.
Rob Portman
Director
Attachment
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PART —AUDITS OF STATES, LOCAL GOVERNMENTS, AND NON-PROFIT
ORGANIZATIONS
Subpart A—General
Sec.
.100 Purpose.
.105 Definitions.
Subpart B—Audits
.200 Audit requirements.
.205 Basis for determining Federal awards expended.
.210 Subrecipient and vendor determinations.
.215 Relation to other audit requirements.
.220 Frequency of audits.
~.225 Sanctions.
.230 Audit costs.
.235 Program-specific audits.
Subpart C—Auditees
.300 Auditee responsibilities.
.305 Auditor selection.
.310 Financial statements.
.315 Audit findings follow-up.
.320 Report submission.
Subpart D--Federal Agencies and Pass-Through Entities
.400 Responsibilities.
.405 Management decision.
Subpart E--Auditors
.500 Scope of audit.
.505 Audit reporting.
.510 Audit findings.
.515 Audit working papers.
.520 Major program determination.
.525 Criteria for Federal program risk.
.530 Criteria for a low-risk auditee.
Appendix A to Part - Data Collection Form (Form SF-SAC).
Appendix B to Part - Circular A-133 Compliance Supplement.
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Subpart A—General
§ .100 Purpose.
This part sets forth standards for obtaining consistency and uniformity
among Federal agencies for the audit of non-Federal entities expending Federal
awards.
§ .105 Definitions.
Auditee means any non-Federal entity that expends Federal awards which
must be audited under this part.
Auditor means an auditor, that is a public accountant or a Federal,
State or local government audit organization, which meets the general
standards specified in generally accepted government auditing standards
(GAGAS). The term auditor does not include internal auditors of non-profit
organizations.
Audit finding means deficiencies which the auditor is required by
§ .510(a) to report in the schedule of findings and questioned costs.
CFDA number means the number assigned to a Federal program in the
Catalog of Federal Domestic Assistance (CFDA).
Cluster of programs means a grouping of closely related programs that
share common compliance requirements. The types of clusters of programs are
research and development (R&D), student financial aid (SFA), and other
clusters. "Other clusters" are as defined by the Office of Management and
Budget (OMB) in the compliance supplement or as designated by a State for
Federal awards the State provides to its subrecipients that meet the
definition of a cluster of programs. When designating an "other cluster," a
State shall identify the Federal awards included in the cluster and advise the
subrecipients of compliance requirements applicable to the cluster, consistent
with § .400(d)(l) and § .400(d)(2), respectively. A cluster of programs
shall be considered as one program for determining major programs, as
described in § .520, and, with the exception of R&D as described in
§ .200(c), whether a program-specific audit may be elected.
Cognizant agency for audit means the Federal agency designated to carry
out the responsibilities described in § .400(a).
Compliance supplement refers to the Circular A-133 Compliance
Supplement, included as Appendix B to Circular A-133, or such documents as
OMB or its designee may issue to replace it. This document is available from
the Government Printing Office, Superintendent of Documents, Washington, DC
20402-9325.
Corrective action means action taken by the auditee that:
(1) Corrects identified deficiencies;
(2) Produces recommended improvements; or
(3) Demonstrates that audit findings are either invalid or do not
warrant auditee action.
Federal agency has the same meaning as the term agency in Section 551(1)
of title 5, United States Code.
Federal award means Federal financial assistance and Federal cost-
reimbursement contracts that non-Federal entities receive directly from
Federal awarding agencies or indirectly from pass-through entities. It does
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not include procurement contracts, under grants or contracts, used to buy
goods or services from vendors. Any audits of such vendors shall be covered
by the terms and conditions of the contract. Contracts to operate Federal
Government owned, contractor operated facilities (GOCOs) are excluded from the
requirements of this part.
Federal awarding agency means the Federal agency that provides an award
directly to the recipient.
Federal financial assistance means assistance that non-Federal entities
receive or administer in the form of grants, loans, loan guarantees, property
(including donated surplus property), cooperative agreements, interest
subsidies, insurance, food commodities, direct appropriations, and other
assistance, but does not include amounts received as reimbursement for
services rendered to individuals as described in § .205(h) and § .205(1).
Federal program means:
(1) All Federal awards to a non-Federal entity assigned a single
number in the CFDA.
(2) When no CFDA number is assigned, all Federal awards from the same
agency made for the same purpose should be combined and considered one
program.
(3) Notwithstanding paragraphs (1) and (2) of this definition, a
cluster of programs. The types of clusters of programs are:
(i) Research and development (R&D);
(ii) Student financial aid (SFA); and
(iii) "Other clusters," as described in the definition of cluster
of programs in this section.
GAGAS means generally accepted government auditing standards issued by
the Comptroller General of the United States, which are applicable to
financial audits.
Generally accepted accounting principles has the meaning specified in
generally accepted auditing standards issued by the American Institute of
Certified Public Accountants (AICPA).
Indian tribe means any Indian tribe, band, nation, or other organized
group or community, including any Alaskan Native village or regional or
village corporation (as defined in, or established under, the Alaskan Native
Claims Settlement Act) that is recognized by the United States as eligible for
the special programs and services provided by the United States to Indians
because of their status as Indians.
Internal control means a process, effected by an entity's management and
other personnel, designed to provide reasonable assurance regarding the
achievement of objectives in the following categories:
(1) Effectiveness and efficiency of operations;
(2) Reliability of financial reporting; and
(3) Compliance with applicable laws and regulations.
Internal control pertaining to the compliance requirements for Federal
programs (Internal control over Federal programs) means a process—effected by
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an entity's management and other personnel—designed to provide reasonable
assurance regarding the achievement of the following objectives for Federal
programs:
(1) Transactions are properly recorded and accounted for to:
(i) Permit the preparation of reliable financial statements and
Federal reports;
(ii) Maintain accountability over assets; and
(iii) Demonstrate compliance with laws, regulations, and other
compliance requirements;
(2) Transactions are executed in compliance with:
(i) Laws, regulations, and the provisions of contracts or grant
agreements that could have a direct and material effect on a Federal program;
and
(ii) Any other laws and regulations that are identified in the
compliance supplement; and
(3) Funds, property, and other assets are safeguarded against loss
from unauthorized use or disposition.
Loan means a Federal loan or loan guarantee received or administered by
a non-Federal entity.
Local government means any unit of local government within a State,
including a county, borough, municipality, city, town, township, parish, local
public authority, special district, school district, intrastate district,
council of governments, and any other instrumentality of local government.
Major program means a Federal program determined by the auditor to be a
major program in accordance with § .520 or a program identified as a major
program by a Federal agency or pass-through entity in accordance with
§ .215(c) .
Management decision means the evaluation by the Federal awarding agency
or pass-through entity of the audit findings and corrective action plan and
the issuance of a written decision as to what corrective action is necessary.
Non-Federal entity means a State, local government, or non-profit
organization.
Non-profit organization means:
(1) any corporation, trust, association, cooperative, or other
organization that:
(i) Is operated primarily for scientific, educational, service,
charitable, or similar purposes in the public interest;
(ii) Is not organized primarily for profit; and
(iii) Uses its net proceeds to maintain, improve, or expand its
operations; and
(2) The term non-profit organization includes non-profit institutions
of higher education and hospitals.
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OMB means the Executive Office of the President, Office of Management
and Budget.
Oversight agency for audit means the Federal awarding agency that
provides the predominant amount of direct funding to a recipient not assigned
a cognizant agency for audit. When there is no direct funding, the Federal
agency with the predominant indirect funding shall assume the oversight
responsibilities. The duties of the oversight agency for audit are described
in § .400(b).
Effective July 28, 2003, the following is added to this definition:
A Federal agency with oversight for an auditee may reassign oversight to
another Federal agency which provides substantial funding and agrees to
be the oversight agency for audit. Within 30 days after any
reassignment, both the old and the new oversight agency for audit shall
notify the auditee, and, if known, the auditor of the reassignment."
Pass-through entity means a non-Federal entity that provides a Federal
award to a subrecipient to carry out a Federal program.
Program-specific audit means an audit of one Federal program as provided
for in § .200(c) and § .235.
Questioned cost means a cost that is questioned by the auditor because
of an audit finding:
(1) Which resulted from a violation or possible violation of a
provision of a law, regulation, contract, grant, cooperative agreement, or
other agreement or document governing the use of Federal funds, including
funds used to match Federal funds;
(2) Where the costs, at the time of the audit, are not supported by
adequate documentation; or
(3) Where the costs incurred appear unreasonable and do not reflect
the actions a prudent person would take in the circumstances.
Recipient means a non-Federal entity that expends Federal awards
received directly from a Federal awarding agency to carry out a Federal
program.
Research and development (R&D) means all research activities, both basic
and applied, and all development activities that are performed by a non-
Federal entity. Research is defined as a systematic study directed toward
fuller scientific knowledge or understanding of the subject studied. The term
research also includes activities involving the training of individuals in
research techniques where such activities utilize the same facilities as other
research and development activities and where such activities are not included
in the instruction function. 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.
Single audit means an audit which includes both the entity's financial
statements and the Federal awards as described in § .500.
State means any State of the United States, the District of Columbia,
the Commonwealth of Puerto Rico, the Virgin Islands, Guam, American Samoa, the
Commonwealth of the Northern Mariana Islands, and the Trust Territory of the
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Pacific Islands, any instrumentality thereof, any multi-State, regional, or
interstate entity which has governmental functions, and any Indian tribe as
defined in this section.
Student Financial Aid (SFA) includes those programs of general student
assistance, such as those authorized by Title IV of the Higher Education Act
of 1965, as amended, (20 U.S.C. 1070 et seq.) which is administered by the
U.S. Department of Education, and similar programs provided by other Federal
agencies. It does not include programs which provide fellowships or similar
Federal awards to students on a competitive basis, or for specified studies or
research.
Subrecipient means a non-Federal entity that expends Federal awards
received from a pass-through entity to carry out a Federal program, but does
not include an individual that is a beneficiary of such a program. A
subrecipient may also be a recipient of other Federal awards directly from a
Federal awarding agency. Guidance on distinguishing between a subrecipient
and a vendor is provided in § .210.
Types of compliance requirements refers to the types of compliance
requirements listed in the compliance supplement. Examples include:
activities allowed or unallowed; allowable costs/cost principles; cash
management; eligibility; matching, level of effort, earmarking; and,
reporting.
Vendor means a dealer, distributor, merchant, or other seller providing
goods or services that are required for the conduct of a Federal program.
These goods or services may be for an organization's own use or for the use of
beneficiaries of the Federal program. Additional guidance on distinguishing
between a subrecipient and a vendor is provided in § .210.
Subpart B--Audits
§ .200 Audit requirements.
(a) Audit required. Non-Federal entities that expend $300,000
($500f000 for fiscal years ending after December 31, 2003) or more in a year
in Federal awards shall have a single or program-specific audit conducted for
that year in accordance with the provisions of this part. Guidance on
determining Federal awards expended is provided in § .205.
(b) Single audit. Non-Federal entities that expend $300,000 ($500,000
for fiscal years ending after December 31, 2003) or more in a year in Federal
awards shall have a single audit conducted in accordance with § .500 except
when they elect to have a program-specific audit conducted in accordance with
paragraph (c) of this section.
(c) Program-specific audit election. When an auditee expends Federal
awards under only one Federal program (excluding R&D) and the Federal
program's laws, regulations, or grant agreements do not require a financial
statement audit of the auditee, the auditee may elect to have a program-
specific audit conducted in accordance with §_.235. A program-specific
audit may not be elected for R&D unless all of the Federal awards expended
were received from the same Federal agency, or the same Federal agency and the
same pass-through entity, and that Federal agency, or pass-through entity in
the case of a subrecipient, approves in advance a program-specific audit.
(d) Exemption when Federal awards expended are less than $300, OOP
($500,000 for fiscal years ending after December 31, 2003).Non-Federal
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entities that expend less than $300,000 ($500,000 for fiscal years ending
after December 31, 2003) a year in Federal awards are exempt from Federal
audit requirements for that year, except as noted in § .215 (a), but records
must be available for review or audit by appropriate officials of the Federal
agency, pass-through entity, and General Accounting Office (GAO).
(e) Federally Funded Research and Development Centers (FFRDC).
Management of an auditee that owns or operates a FFRDC may elect to treat the
FFRDC as a separate entity for purposes of this part.
§ .205 Basis for determining Federal awards expended.
(a) Determining Federal awards expended. The determination of when an
award is expended should be based on when the activity related to the award
occurs. Generally, the activity pertains to events that require the non-
Federal entity to comply with laws, regulations, and the provisions of
contracts or grant agreements, such as: expenditure/expense transactions
associated with grants, cost-reimbursement contracts, cooperative agreements,
and direct appropriations; the disbursement of funds passed through to
subrecipients; the use of loan proceeds under loan and loan guarantee
programs; the receipt of property; the receipt of surplus property; the
receipt or use of program income; the distribution or consumption of food
commodities; the disbursement of amounts entitling the non-Federal entity to
an interest subsidy; and, the period when insurance is in force.
(b) Loan and loan guarantees (loans). Since the Federal Government is
at risk for loans until the debt is repaid, the following guidelines shall be
used to calculate the value of Federal awards expended under loan programs,
except as noted in paragraphs (c) and (d) of this section:
(1) Value of new loans made or received during the fiscal year;
plus
(2) Balance of loans from previous years for which the Federal
Government imposes continuing compliance requirements; plus
(3) Any interest subsidy, cash, or administrative cost allowance
received.
(c) Loan and loan guarantees (loans) at institutions of higher
education. When loans are made to students of an institution of higher
education but the institution does not make the loans, then only the value of
loans made during the year shall be considered Federal awards expended in that
year. The balance of loans for previous years is not included as Federal
awards expended because the lender accounts for the prior balances.
(d) Prior loan and loan guarantees (loans). Loans, the proceeds of
which were received and expended in prior-years, are not considered Federal
awards expended under this part when the laws, regulations, and the provisions
of contracts or grant agreements pertaining to such loans impose no continuing
compliance requirements other than to repay the loans.
(e) Endowment funds. The cumulative balance of Federal awards for
endowment funds which are federally restricted are considered awards expended
in each year in which the funds are still restricted.
(f) Free rent. Free rent received by itself is not considered a
Federal award expended under this part. However, free rent received as part
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of an award to carry out a Federal program shall be included in determining
Federal awards expended and subject to audit under this part.
(g) Valuing non-cash assistance. Federal non-cash assistance, such as
free rent, food stamps, food commodities, donated property, or donated surplus
property, shall be valued at fair market value at the time of receipt or the
assessed value provided by the Federal agency.
(h) Medicare. Medicare payments to a non-Federal entity for providing
patient care services to Medicare eligible individuals are not considered
Federal awards expended under this part.
(i) Medicaid. Medicaid payments to a subrecipient for providing
patient care services to Medicaid eligible individuals are not considered
Federal awards expended under this part unless a State requires the funds to
be treated as Federal awards expended because reimbursement is on a cost-
reimbursement basis .
(j) Certain loans provided by the National Credit Union
Administration. For purposes of this part, loans made from the National
Credit Union Share Insurance Fund and the Central Liquidity Facility that are
funded by contributions from insured institutions are not considered Federal
awards expended.
§ .210 Subrecipient and vendor determinations.
(a) General. An auditee may be a recipient, a subrecipient, and a
vendor. Federal awards expended as a recipient or a subrecipient would be
subject to audit under this part. The payments received for goods or services
provided as a vendor would not be considered Federal awards. The guidance in
paragraphs (b) and (c) of this section should be considered in determining
whether payments constitute a Federal award or a payment for goods and
services.
(b) Federal award. Characteristics indicative of a Federal award
received by a subrecipient are when the organization:
(1) Determines who is eligible to receive what Federal financial
assistance;
(2) Has its performance measured against whether the objectives
of the Federal program are met;
(3) Has responsibility for programmatic decision making;
(4) Has responsibility for adherence to applicable Federal
program compliance requirements; and
(5) Uses the Federal funds to carry out a program of the
organization as compared to providing goods or services for a program of the
pass-through entity.
(c) Payment for goods and services. Characteristics indicative of a
payment for goods and services received by a vendor are when the organization:
(1) Provides the goods and services within normal business
operations;
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(2) Provides similar goods or services to many different
purchasers;
(3) Operates in a competitive environment;
(4) Provides goods or services that are ancillary to the
operation of the Federal program; and
(5) Is not subject to compliance requirements of the Federal
program.
(d) Use of judgment in making determination. There may be unusual
circumstances or exceptions to the listed characteristics. In making the
determination of whether a subrecipient or vendor relationship exists, the
substance of the relationship is more important than the form of the
agreement. It is not expected that all of the characteristics will be present
and judgment should be used in determining whether an entity is a subrecipient
or vendor.
(e) For-profit subrecipient. Since this part does not apply to for-
profit subrecipients, the pass-through entity is responsible for establishing
requirements, as necessary, to ensure compliance by for-profit subrecipients.
The contract with the for-profit subrecipient should describe applicable
compliance requirements and the for-profit subrecipient's compliance
responsibility. Methods to ensure compliance for Federal awards made to for-
profit subrecipients may include pre-award audits, monitoring during the
contract, and post-award audits.
(f) Compliance responsibility for vendors. In most cases, the
auditee's compliance responsibility for vendors is only to ensure that the
procurement, receipt, and payment for goods and services comply with laws,
regulations, and the provisions of contracts or grant agreements. Program
compliance requirements normally do not pass through to vendors. However, the
auditee is responsible for ensuring compliance for vendor transactions which
are structured such that the vendor is responsible for program compliance or
the vendor's records must be reviewed to determine program compliance. Also,
when these vendor transactions relate to a major program, the scope of the
audit shall include determining whether these transactions are in compliance
with laws, regulations, and the provisions of contracts or grant agreements.
§ .215 Relation to other audit requirements.
(a) Audit under this part in lieu of other audits. An audit made in
accordance with this part shall be in lieu of any financial audit required
under individual Federal awards. To the extent this audit meets a Federal
agency's needs, it shall rely upon and use such audits. The provisions of
this part neither limit the authority of Federal agencies, including their
Inspectors General, or GAO to conduct or arrange for additional audits (e.g.,
financial audits, performance audits, evaluations, inspections, or reviews)
nor authorize any auditee to constrain Federal agencies from carrying out
additional audits. Any additional audits shall be planned and performed in
such a way as to build upon work performed by other auditors.
(b) Federal agency to pay for additional audits. A Federal agency
that conducts or contracts for additional audits shall, consistent with other
applicable laws and regulations, arrange for funding the full cost of such
additional audits.
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(c) Request for a program to be audited as a major program. A Federal
agency may request an auditee to have a particular Federal program audited as
a major program in lieu of the Federal agency conducting or arranging for the
additional audits. To allow for planning, such requests should be made at
least 180 days prior to the end of the fiscal year to be audited. The
auditee, after consultation with its auditor, should promptly respond to such
request by informing the Federal agency whether the program would otherwise be
audited as a major program using the risk-based audit approach described in
§ .520 and, if not, the estimated incremental cost. The Federal agency
shall then promptly confirm to the auditee whether it wants the program
audited as a major program. If the program is to be audited as a major
program based upon this Federal agency request, and the Federal agency agrees
to pay the full incremental costs, then the auditee shall have the program
audited as a major program. A pass-through entity may use the provisions of
this paragraph for a subrecipient.
§ .220 Frequency of audits.
Except for the provisions for biennial audits provided in paragraphs (a)
and (b) of this section, audits required by this part shall be performed
annually. Any biennial audit shall cover both years within the biennial
period.
(a) A State or local government that is required by constitution or
statute, in effect on January 1, 1987, to undergo its audits less frequently
than annually, is permitted to undergo its audits pursuant to this part
biennially. This requirement must still be in effect for the biennial period
under audit.
(b) Any non-profit organization that had biennial audits for all
biennial periods ending between July 1, 1992, and January 1, 1995, is
permitted to undergo its audits pursuant to this part biennially.
§ .225 Sanctions.
No audit costs may be charged to Federal awards when audits required by
this part have not been made or have been made but not in accordance with this
part. In cases of continued inability or unwillingness to have an audit
conducted in accordance with this part, Federal agencies and pass-through
entities shall take appropriate action using sanctions such as:
(a) Withholding a percentage of Federal awards until the audit is
completed satisfactorily;
(b) Withholding or disallowing overhead costs;
(c) Suspending Federal awards until the audit is conducted; or
(d) Terminating the Federal award.
§ .230 Audit costs.
(a) Allowable costs. Unless prohibited by law, the cost of audits
made in accordance with the provisions of this part are allowable charges to
Federal awards. The charges may be considered a direct cost or an allocated
indirect cost, as determined in accordance with the provisions of applicable
OMB cost principles circulars, the Federal Acquisition Regulation (FAR) (48
CFR parts 30 and 31), or other applicable cost principles or regulations.
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(b) Unallowable costs. A non-Federal entity shall not charge the
following to a Federal award:
(1) The cost of any audit under the Single Audit Act Amendments
of 1996 (31 U.S.C. 7501 et seq.) not conducted in accordance with this part.
(2) The cost of auditing a non-Federal entity which has Federal
awards expended of less than $300,000 ($500,000 for fiscal years ending after
December 31, 2003) per year and is thereby exempted under § . 200(d) from
having an audit conducted under this part. However, this does not prohibit a
pass-through entity from charging Federal awards for the cost of limited scope
audits to monitor its subrecipients in accordance with § . 400 (d) (3),
provided the subrecipient does not have a single audit. For purposes of this
part, limited scope audits only include agreed-upon procedures engagements
conducted in accordance with either the AICPA's generally accepted auditing
standards or attestation standards, that are paid for and arranged by a pass-
through entity and address only one or more of the following types of
compliance requirements: activities allowed or unallowed; allowable
costs/cost principles; eligibility; matching, level of effort, earmarking;
and, reporting.
§ .235 Program-specific audits.
(a) Program-specific audit guide available. In many cases, a program-
specific audit guide will be available to provide specific guidance to the
auditor with respect to internal control, compliance requirements, suggested
audit procedures, and audit reporting requirements. The auditor should
contact the Office of Inspector General of the Federal agency to determine
whether such a guide is available. When a current program-specific audit
guide is available, the auditor shall follow GAGAS and the guide when
performing a program-specific audit.
(b) Program-specific audit guide not available. (1) When a program-
specific audit guide is not available, the auditee and auditor shall have
basically the same responsibilities for the Federal program as they would have
for an audit of a major program in a single audit.
(2) The auditee shall prepare the financial statement(s) for the
Federal program that includes, at a minimum, a schedule of expenditures of
Federal awards for the program and notes that describe the significant
accounting policies used in preparing the schedule, a summary schedule of
prior audit findings consistent with the requirements of § .315(b), and a
corrective action plan consistent with the requirements of § .315(c) .
(3) The auditor shall:
(i) Perform an audit of the financial statement(s) for the
Federal program in accordance with GAGAS;
(ii) Obtain an understanding of internal control and
perform tests of internal control over the Federal program consistent with the
requirements of § .500(c) for a major program;
(iii) Perform procedures to determine whether the auditee
has complied with laws, regulations, and the provisions of contracts or grant
agreements that could have a direct and material effect on the Federal program
consistent with the requirements of § .500(d) for a major program; and
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(iv) Follow up on prior audit findings, perform procedures
to assess the reasonableness of the summary schedule of prior audit findings
prepared by the auditee, and report, as a current year audit finding, when the
auditor concludes that the summary schedule of prior audit findings materially
misrepresents the status of any prior audit finding in accordance with the
requirements of § .500(e) .
(4) The auditor's report (s) may be in the form of either
combined or separate reports and may be organized differently from the manner
presented in this section. The auditor's report (s) shall state that the audit
was conducted in accordance with this part and include the following:
(i) An opinion (or disclaimer of opinion) as to whether
the financial statement(s) of the Federal program is presented fairly in all
material respects in conformity with the stated accounting policies;
(ii) A report on internal control related to the Federal
program, which shall describe the scope of testing of internal control and the
results of the tests;
(iii) A report on compliance which includes an opinion (or
disclaimer of opinion) as to whether the auditee complied with laws,
regulations, and the provisions of contracts or grant agreements which could
have a direct and material effect on the Federal program; and
(iv) A schedule of findings and questioned costs for the
Federal program that includes a summary of the auditor's results relative to
the Federal program in a format consistent with § .505(d) (1) and findings
and questioned costs consistent with the requirements of § .505(d) (3).
(c) Report submission for program-specific audits.
(1) The audit shall be completed and the reporting required by paragraph
(c)(2) or (c)(3) of this section submitted within the earlier of 30 days after
receipt of the auditor's report (s), or nine months after the end of the audit
period, unless a longer period is agreed to in advance by the Federal agency
that provided the funding or a different period is specified in a program-
specific audit guide. (However, for fiscal years beginning on or before June
30, 1998, the audit shall be completed and the required reporting shall be
submitted within the earlier of 30 days after receipt of the auditor's
report(s), or 13 months after the end of the audit period, unless a different
period is specified in a program-specific audit guide.) Unless restricted by
law or regulation, the auditee shall make report copies available for public
inspection.
(2) When a program-specific audit guide is available, the
auditee shall submit to the Federal clearinghouse designated by OMB the data
collection form prepared in accordance with § .320(b), as applicable to a
program-specific audit, and the reporting required by the program-specific
audit guide to be retained as an archival copy. Also, the auditee shall
submit to the Federal awarding agency or pass-through entity the reporting
required by the program-specific audit guide.
(3) When a program-specific audit guide is not available, the
reporting package for a program-specific audit shall consist of the financial
statement(s) of the Federal program, a summary schedule of prior audit
findings, and a corrective action plan as described in paragraph (b)(2) of
this section, and the auditor's report(s) described in paragraph (b)(4) of
this section. The data collection form prepared in accordance with
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§ .320(b), as applicable to a program-specific audit, and one copy of this
reporting package shall be submitted to the Federal clearinghouse designated
by OMB to be retained as an archival copy. Also, when the schedule of
findings and questioned costs disclosed audit findings or the summary schedule
of prior audit findings reported the status of any audit findings, the auditee
shall submit one copy of the reporting package to the Federal clearinghouse on
behalf of the Federal awarding agency, or directly to the pass-through entity
in the case of a subrecipient. Instead of submitting the reporting package to
the pass-through entity, when a subrecipient is not required to submit a
reporting package to the pass-through entity, the subrecipient shall provide
written notification to the pass-through entity, consistent with the
requirements of § .320(e)(2). A subrecipient may submit a copy of the
reporting package to the pass-through entity to comply with this notification
requirement.
(d) Other sections of this part may apply. Program-specific audits
are subject to § .100 through § .215(b), § .220 through § .230,
§ .300 through § .305, § .315, § .320(f) through § . 320(j), § .400
through § .405, § .510 through § .515, and other referenced provisions
of this part unless contrary to the provisions of this section, a program-
specific audit guide, or program laws and regulations.
Subpart C—Auditees
§ .300 Auditee responsibilities.
The auditee shall:
(a) Identify, in its accounts, all Federal awards received and expended
and the Federal programs under which they were received. Federal
program and award identification shall include, as applicable, the CFDA title
and number, award number and year, name of the Federal agency, and name of the
pass-through entity.
(b) Maintain internal control over Federal programs that provides
reasonable assurance that the auditee is managing
Federal awards in compliance with laws, regulations, and the provisions of
contracts or grant agreements that could have a material effect on each of its
Federal programs.
(c) Comply with laws, regulations, and the provisions of contracts or
grant agreements related to each of its Federal programs.
(d) Prepare appropriate financial statements, including the schedule
of expenditures of Federal awards in accordance with § .310.
(e) Ensure that the audits required by this part are properly
performed and submitted when due. When extensions to the report submission
due date required by § .320(a) are granted by the cognizant or oversight
agency for audit, promptly notify the Federal clearinghouse designated by OMB
and each pass-through entity providing Federal awards of the extension.
(f) Follow up and take corrective action on audit findings, including
preparation of a summary schedule of prior audit findings and a corrective
action plan in accordance with § .315(b) and § .315(c), respectively.
§ .305 Auditor selection.
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(a) Auditor procurement. In procuring audit services, auditees shall
follow the procurement standards prescribed by the Grants Management Common
Rule (hereinafter referred to as the "A-102 Common Rule") published March 11,
1988 and amended April 19, 1995 [insert appropriate CFR citation], Circular
A-110, "Uniform Administrative Requirements for Grants and Agreements with
Institutions of Higher Education, Hospitals and Other Non-Profit
Organizations," or the FAR (48 CFR part 42), as applicable (OMB Circulars are
available from the Office of Administration, Publications Office, room 2200,
New Executive Office Building, Washington, DC 20503). Whenever possible,
auditees shall make positive efforts to utilize small businesses, minority-
owned firms, and women's business enterprises, in procuring audit services as
stated in the A-102 Common Rule, OMB Circular A-110, or the FAR (48 CFR part
42), as applicable. In requesting proposals for audit services, the
objectives and scope of the audit should be made clear. Factors to be
considered in evaluating each proposal for audit services include the
responsiveness to the request for proposal, relevant experience, availability
of staff with professional qualifications and technical abilities, the results
of external quality control reviews, and price.
(b) Restriction on auditor preparing indirect cost proposals . An
auditor who prepares the indirect cost proposal or cost allocation plan may
not also be selected to perform the audit required by this part when the
indirect costs recovered by the auditee during the prior year exceeded $1
million. This restriction applies to the base year used in the preparation of
the indirect cost proposal or cost allocation plan and any subsequent years in
which the resulting indirect cost agreement or cost allocation plan is used to
recover costs. To minimize any disruption in existing contracts for audit
services, this paragraph applies to audits of fiscal years beginning after
June 30, 1998.
(c) Use of Federal auditors . Federal auditors may perform all or part
of the work required under this part if they comply fully with the
requirements of this part.
§ .310 Financial statements.
(a) Financial statements. The auditee shall prepare financial
statements that reflect its financial position, results of operations or
changes in net assets, and, where appropriate, cash flows for the fiscal year
audited. The financial statements shall be for the same organizational unit
and fiscal year that is chosen to meet the requirements of this part.
However, organization-wide financial statements may also include departments,
agencies, and other organizational units that have separate audits in
accordance with § .500(a) and prepare separate financial statements.
(b) Schedule of expenditures of Federal awards . The auditee shall
also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee's financial statements. While not required, the
auditee may choose to provide information requested by Federal awarding
example, when a Federal program has multiple award years, the auditee may list
the amount of Federal awards expended for each award year separately. At a
minimum, the schedule shall:
(1) List individual Federal programs by Federal agency. For
Federal programs included in a cluster of programs, list individual Federal
shall be shown either by individual award or by Federal agency and major
subdivision within the Federal agency. For example, the National Institutes
of Health is a major subdivision in the Department of Health and Human
Services.
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(2) For Federal awards received as a subrecipient, the name of
the pass-through entity and identifying number assigned by the pass-through
entity shall be included.
(3) Provide total Federal awards expended for each individual
Federal program and the CFDA number or other identifying number when the CFDA
information is not available.
(4) Include notes that describe the significant accounting
policies used in preparing the schedule.
(5) To the extent practical, pass-through entities should
identify in the schedule the total amount provided to subrecipients from each
Federal program.
(6) Include, in either the schedule or a note to the schedule,
the value of the Federal awards expended in the form of non-cash assistance,
the amount of insurance in effect during the year, and loans or loan
guarantees outstanding at year end. While not required, it is preferable to
present this information in the schedule.
§ .315 Audit findings follow-up.
(a) General. The auditee is responsible for follow-up and corrective
action on all audit findings. As part of this responsibility, the auditee
shall prepare a summary schedule of prior audit findings. The auditee shall
also prepare a corrective action plan for current year audit findings. The
summary schedule of prior audit findings and the corrective action plan shall
include the reference numbers the auditor assigns to audit findings under
§ .510(c). Since the summary schedule may include audit findings from
multiple years, it shall include the fiscal year in which the finding
initially occurred.
(b) Summary schedule of prior audit findings . The summary schedule of
prior audit findings shall report the status of all audit findings included in
the prior audit's schedule of findings and questioned costs relative to
Federal awards. The summary schedule shall also include audit findings
reported in the prior audit's summary schedule of prior audit findings except
audit findings listed as corrected in accordance with paragraph (b)(1) of this
section, or no longer valid or not warranting further action in accordance
with paragraph (b)(4) of this section.
(1) When audit findings were fully corrected, the summary
schedule need only list the audit findings and state that corrective action
was taken.
(2) When audit findings were not corrected or were only
partially corrected, the summary schedule shall describe the planned
corrective action as well as any partial corrective action taken.
(3) When corrective action taken is significantly different from
corrective action previously reported in a corrective action plan or in the
Federal agency's or pass-through entity's management decision, the summary
schedule shall provide an explanation.
(4) When the auditee believes the audit findings are no longer
valid or do not warrant further action, the reasons for this position shall be
described in the summary schedule. A valid reason for considering an audit
finding as not warranting further action is that all of the following have
occurred:
(i) Two years have passed since the audit report in which
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the finding occurred was submitted to the Federal clearinghouse;
(ii) The Federal agency or pass-through entity is not
currently following up with the auditee on the audit finding; and
(iii) A management decision was not issued.
(c) Corrective action plan. At the completion of the audit, the
auditee shall prepare a corrective action plan to address each audit finding
included in the current year auditor's reports. The corrective action plan
shall provide the name(s) of the contact person(s) responsible for corrective
action, the corrective action planned, and the anticipated completion date.
If the auditee does not agree with the audit findings or believes corrective
action is not required, then the corrective action plan shall include an
explanation and specific reasons.
§ .320 Report submission.
(a) General. The audit shall be completed and the data collection
form described in paragraph (b) of this section and reporting package
described in paragraph (c) of this section shall be submitted within the
earlier of 30 days after receipt of the auditor's report(s), or nine months
after the end of the audit period, unless a longer period is agreed to in
advance by the cognizant or oversight agency for audit. (However, for fiscal
years beginning on or before June 30, 1998, the audit shall be completed and
the data collection form and reporting package shall be submitted within the
earlier of 30 days after receipt of the auditor's report(s), or 13 months
after the end of the audit period.) Unless restricted by law or regulation,
the auditee shall make copies available for public inspection.
(b) Data Collection. (1) The auditee shall submit a data collection
form which states whether the audit was completed in accordance with this part
and provides information about the auditee, its Federal programs, and the
results of the audit. The form shall be approved by OMB, available from the
Federal clearinghouse designated by OMB, and include data elements similar to
those presented in this paragraph. A senior level representative of the
auditee (e.g., State controller, director of finance, chief executive officer,
or chief financial officer) shall sign a statement to be included as part of
the form certifying that: the auditee complied with the requirements of this
part, the form was prepared in accordance with this part (and the instructions
accompanying the form), and the information included in the form, in its
entirety, are accurate and complete.
(2) The data collection form shall include the following data
elements:
(i) The type of report the auditor issued on the financial statements of
the auditee (i.e., unqualified opinion, qualified opinion, adverse
opinion, or disclaimer of opinion).
(ii) Where applicable, a statement that significant deficiencies in internal
control were disclosed by the audit of the financial statements and
whether any such conditions were material weaknesses.
(iii) A statement as to whether the audit disclosed any noncompliance which
is material to the financial statements of the auditee.
(iv) Where applicable, a statement that significant deficiencies in internal
control over major programs were disclosed by the audit and whether
any such conditions were material weaknesses.
(v) The type of report the auditor issued on compliance for major
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VI
(vii)
(x)
XI
(xii)
(xiv)
(xv)
(xvi)
programs (i.e., unqualified opinion, qualified opinion, adverse
opinion, or disclaimer of opinion).
A list of the Federal awarding agencies which will receive a copy of
the reporting package pursuant to § .320(d)(2) of OMB Circular
A-133.
A yes or no statement as to whether the auditee qualified as a low-
risk auditee under § .530 of OMB Circular A-133.
The dollar threshold used to distinguish between Type A and Type B
programs as defined in § .520(b) of OMB Circular A-133.
The Catalog of Federal Domestic Assistance (CFDA) number for each
Federal program, as applicable.
The name of each Federal program and identification of each major
program. Individual programs within a cluster of programs should be
listed in the same level of detail as they are listed in the schedule
of expenditures of Federal awards.
The amount of expenditures in the schedule of expenditures of Federal
awards associated with each Federal program.
For each Federal program, a yes or no statement as to whether there
are audit findings in each of the following types of compliance
requirements and the total amount of any questioned costs:
(A)
(B)
(C)
(D)
(E)
(F)
(G)
(H)
(I)
(J)
(K)
(L)
(M)
(N)
Activities allowed or unallowed.
Allowable costs/cost principles.
Cash management.
Davis-Bacon Act.
Eligibility.
Equipment and real property management.
Matching, level of effort, earmarking.
Period of availability of Federal funds.
Procurement and suspension and debarment.
Program income.
Real property acquisition and relocation assistance.
Reporting.
Subrecipient monitoring.
Special tests and provisions.
Auditee Name, Employer Identification Number(s), Name and Title of
Certifying Official, Telephone Number, Signature, and Date.
Auditor Name, Name and Title of Contact Person, Auditor Address,
Auditor Telephone Number, Signature, and Date.
Whether the auditee has either a cognizant or oversight agency for
audit.
The name of the cognizant or oversight agency for audit determined in
accordance with § .400(a) and § .400(b), respectively.
(3) Using the information included in the reporting package
described in paragraph (c) of this section, the auditor shall complete the
applicable sections of the form. The auditor shall sign a statement to be
included as part of the data collection form that indicates, at a minimum, the
source of the information included in the form, the auditor's responsibility
for the information, that the form is not a substitute for the reporting
package described in paragraph (c) of this section, and that the content of
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the form is limited to the data elements prescribed by OMB.
(c) Reporting package. The reporting package shall include the:
(1) Financial statements and schedule of expenditures of
Federal awards discussed in § .310(a) and § .310(b), respectively;
(2) Summary schedule of prior audit findings discussed in
§ .315(b);
(3) Auditor's report(s) discussed in § .505; and
(4) Corrective action plan discussed in § .315(c) .
(d) Submission to clearinghouse. All auditees shall submit to the Federal
clearinghouse designated by OMB a single copy of the data collection form
described in paragraph (b) of this section and the reporting package described
in paragraph (c) of this section.
(e) Additional submission by subrecipients . (1) In addition to the
requirements discussed in paragraph (d) of this section, auditees that are
also subrecipients shall submit to each pass-through entity one copy of the
reporting package described in paragraph (c) of this section for each pass-
through entity when the schedule of findings and questioned costs disclosed
audit findings relating to Federal awards that the pass-through entity
provided or the summary schedule of prior audit findings reported the status
of any audit findings relating to Federal awards that the pass-through entity
provided.
(2) Instead of submitting the reporting package to a pass-
through entity, when a subrecipient is not required to submit a reporting
package to a pass-through entity pursuant to paragraph (e)(1) of this section,
the subrecipient shall provide written notification to the pass-through entity
that: an audit of the subrecipient was conducted in accordance with this part
(including the period covered by the audit and the name, amount, and CFDA
number of the Federal award(s) provided by the pass-through entity); the
schedule of findings and questioned costs disclosed no audit findings relating
to the Federal award(s) that the pass-through entity provided; and, the
summary schedule of prior audit findings did not report on the status of any
audit findings relating to the Federal award(s) that the pass-through entity
provided. A subrecipient may submit a copy of the reporting package described
in paragraph (c) of this section to a pass-through entity to comply with this
notification requirement.
(f) Requests for report copies . In response to requests by a Federal
agency or pass-through entity, auditees shall submit the appropriate copies of
the reporting package described in paragraph (c) of this section and, if
requested, a copy of any management letters issued by the auditor.
(g) Report retention requirements. Auditees shall keep one copy of
the data collection form described in paragraph (b) of this section and one
copy of the reporting package described in paragraph (c) of this section on
file for three years from the date of submission to the Federal clearinghouse
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designated by OMB. Pass-through entities shall keep subrecipients'
submissions on file for three years from date of receipt.
(h) Clearinghouse responsibilities . The Federal clearinghouse
designated by OMB shall distribute the reporting packages received in
accordance with paragraph (d)(2) of this section and § .235(c)(3) to
applicable Federal awarding agencies, maintain a data base of completed
audits, provide appropriate information to Federal agencies, and follow up
with known auditees which have not submitted the required data collection
forms and reporting packages.
(i) Clearinghouse address . The address of the Federal clearinghouse
currently designated by OMB is Federal Audit Clearinghouse, Bureau of the
Census, 1201 E. 10th Street, Jeffersonville, IN 47132.
(j) Electronic filing. Nothing in this part shall preclude electronic
submissions to the Federal clearinghouse in such manner as may be approved by
OMB. With OMB approval, the Federal clearinghouse may pilot test methods of
electronic submissions.
Subpart D—Federal Agencies and Pass-Through Entities
§ .400 Responsibilities.
(a) Cognizant agency for audit responsibilities . Recipients expending
more than $25 million ($50 million for fiscal years ending after December 31,
2003) a year in Federal awards shall have a cognizant agency for audit. The
designated cognizant agency for audit shall be the Federal awarding agency
that provides the predominant amount of direct funding to a recipient unless
OMB makes a specific cognizant agency for audit assignment.
Following is effective for fiscal years ending on or before December 31, 2003:
To provide for continuity of cognizance, the determination of the predominant
amount of direct funding shall be based upon direct Federal awards expended in
the recipient's fiscal years ending in 1995, 2000, 2005, and every fifth year
thereafter. For example, audit cognizance for periods ending in 1997 through
2000 will be determined based on Federal awards expended in 1995. (However,
for States and local governments that expend more than $25 million a year in
Federal awards and have previously assigned cognizant agencies for audit, the
requirements of this paragraph are not effective until fiscal years beginning
after June 30, 2000. )
Following is effective for fiscal years ending after December 31, 2003:
The determination of the predominant amount of direct funding shall be based
upon direct Federal awards expended in the recipient's fiscal years ending in
2004, 2009, 2014, and every fifth year thereafter. For example, audit
cognizance for periods ending in 2006 through 2010 will be determined based on
Federal awards expended in 2004. (However, for 2001 through 2005,the
cognizant agency for audit is determined based on the predominant amount of
direct Federal awards expended in the recipient's fiscal year ending in 2000).
Notwithstanding the manner in which audit cognizance is determined, a Federal
awarding agency with cognizance for an auditee may reassign cognizance to
another Federal awarding agency which provides substantial direct funding and
agrees to be the cognizant agency for audit. Within 30 days after any
reassignment, both the old and the new cognizant agency for audit shall notify
the auditee, and, if known, the auditor of the reassignment. The cognizant
agency for audit shall:
(1) Provide technical audit advice and liaison to auditees and
auditors.
(2) Consider auditee requests for extensions to the report
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submission due date required by § .320(a). The cognizant agency for audit
may grant extensions for good cause.
(3) Obtain or conduct quality control reviews of selected
audits made by non-Federal auditors, and provide the results, when
appropriate, to other interested organizations.
(4) Promptly inform other affected Federal agencies and
appropriate Federal law enforcement officials of any direct reporting by the
auditee or its auditor of irregularities or illegal acts, as required by GAGAS
or laws and regulations.
(5) Advise the auditor and, where appropriate, the auditee of
any deficiencies found in the audits when the deficiencies require corrective
action by the auditor. When advised of deficiencies, the auditee shall work
with the auditor to take corrective action. If corrective action is not
taken, the cognizant agency for audit shall notify the auditor, the auditee,
and applicable Federal awarding agencies and pass-through entities of the
facts and make recommendations for follow-up action. Major inadequacies or
repetitive substandard performance by auditors shall be referred to
appropriate State licensing agencies and professional bodies for disciplinary
action.
(6) Coordinate, to the extent practical, audits or reviews
made by or for Federal agencies that are in addition to the audits made
pursuant to this part, so that the additional audits or reviews build upon
audits performed in accordance with this part.
(7) Coordinate a management decision for audit findings that
affect the Federal programs of more than one agency.
(8) Coordinate the audit work and reporting responsibilities
among auditors to achieve the most cost-effective audit.
(9) For biennial audits permitted under § .220, consider
auditee requests to qualify as a low-risk auditee under § .530(a).
(b) Oversight agency for audit responsibilities . An auditee which
does not have a designated cognizant agency for audit will be under the
general oversight of the Federal agency determined in accordance with
§ .105. The oversight agency for audit:
(1) Shall provide technical advice to auditees and auditors as
requested.
(2) May assume all or some of the responsibilities normally
performed by a cognizant agency for audit.
(c) Federal awarding agency responsibilities . The Federal awarding
agency shall perform the following for the Federal awards it makes:
(1) Identify Federal awards made by informing each recipient of
the CFDA title and number, award name and number, award year, and if the award
is for R&D. When some of this information is not available, the Federal
agency shall provide information necessary to clearly describe the Federal
award.
(2) Advise recipients of requirements imposed on them by
Federal laws, regulations, and the provisions of contracts or grant
agreements.
(3) Ensure that audits are completed and reports are received
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in a timely manner and in accordance with the requirements of this part.
(4) Provide technical advice and counsel to auditees and
auditors as requested.
(5) Issue a management decision on audit findings within six
months after receipt of the audit report and ensure that the recipient takes
appropriate and timely corrective action.
(6) Assign a person responsible for providing annual updates
of the compliance supplement to OMB.
(d) Pass-through entity responsibilities. A pass-through entity shall
perform the following for the Federal awards it makes:
(1) Identify Federal awards made by informing each
subrecipient of CFDA title and number, award name and number, award year, if
the award is R&D, and name of Federal agency. When some of this information
is not available, the pass-through entity shall provide the best information
available to describe the Federal award.
(2) Advise subrecipients of requirements imposed on them by
Federal laws, regulations, and the provisions of contracts or grant agreements
as well as any supplemental requirements imposed by the pass-through entity.
(3) Monitor the activities of subrecipients as necessary to
ensure that Federal awards are used for authorized purposes in compliance with
laws, regulations, and the provisions of contracts or grant agreements and
that performance goals are achieved.
(4) Ensure that subrecipients expending $300,000 ($500,000 for
fiscal years ending after December 31, 2003) or more in Federal awards during
the subrecipient's fiscal year have met the audit requirements of this part
for that fiscal year.
(5) Issue a management decision on audit findings within six
months after receipt of the subrecipient's audit report and ensure that the
subrecipient takes appropriate and timely corrective action.
(6) Consider whether subrecipient audits necessitate
adjustment of the pass-through entity's own records.
(7) Require each subrecipient to permit the pass-through
entity and auditors to have access to the records and financial statements as
necessary for the pass-through entity to comply with this part.
§ .405 Management decision.
(a) General. The management decision shall clearly state whether or
not the audit finding is sustained, the reasons for the decision, and the
expected auditee action to repay disallowed costs, make financial adjustments,
or take other action. If the auditee has not completed corrective action, a
timetable for follow-up should be given. Prior to issuing the management
decision, the Federal agency or pass-through entity may request
additional information or documentation from the auditee, including a request
for auditor assurance related to the documentation, as a way of mitigating
disallowed costs. The management decision should describe any appeal process
available to the auditee.
(b) Federal agency. As provided in § .400(a)(7), the cognizant
agency for audit shall be responsible for coordinating a management decision
for audit findings that affect the programs of more than one Federal agency.
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As provided in § .400(c)(5), a Federal awarding agency is responsible for
issuing a management decision for findings that relate to Federal awards it
makes to recipients. Alternate arrangements may be made on a case-by-case
basis by agreement among the Federal agencies concerned.
(c) Pass-through entity. As provided in § .400(d)(5), the pass-
through entity shall be responsible for making the management decision for
audit findings that relate to Federal awards it makes to subrecipients.
(d) Time requirements. The entity responsible for making the
management decision shall do so within six months of receipt of the audit
report. Corrective action should be initiated within six months after receipt
of the audit report and proceed as rapidly as possible.
(e) Reference numbers. Management decisions shall include the
reference numbers the auditor assigned to each audit finding in accordance
with § .510(c).
Subpart E--Auditors
§ .500 Scope of audit.
(a) General. The audit shall be conducted in accordance with GAGAS.
The audit shall cover the entire operations of the auditee; or, at the option
of the auditee, such audit shall include a series of audits that cover
departments, agencies, and other organizational units which expended or
otherwise administered Federal awards during such fiscal year, provided that
each such audit shall encompass the financial statements and schedule of
expenditures of Federal awards for each such department, agency, and other
organizational unit, which shall be considered to be a non-Federal entity.
The financial statements and schedule of expenditures of Federal awards shall
be for the same fiscal year.
(b) Financial statements. The auditor shall determine whether the
financial statements of the auditee are presented fairly in all material
respects in conformity with generally accepted accounting principles. The
auditor shall also determine whether the schedule of expenditures of Federal
awards is presented fairly in all material respects in relation to the
auditee's financial statements taken as a whole.
(c) Internal control. (1) In addition to the requirements of GAGAS,
the auditor shall perform procedures to obtain an understanding of internal
control over Federal programs sufficient to plan the audit to support a low
assessed level of control risk for major programs.
(2) Except as provided in paragraph (c)(3) of this section,
the auditor shall:
(i) Plan the testing of internal control over major
programs to support a low assessed level of control risk for the assertions
relevant to the compliance requirements for each major program; and
(ii) Perform testing of internal control as planned in
paragraph (c)(2)(i) of this section.
(3) When internal control over some or all of the compliance
requirements for a major program are likely to be ineffective in preventing or
detecting noncompliance, the planning and performing of testing described in
paragraph (c)(2) of this section are not required for those compliance
requirements. However, the auditor shall report a significant deficiency
(including whether any such condition is a material weakness) in accordance
with § .510, assess the related control risk at the maximum, and consider
whether additional compliance tests are required because of ineffective
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internal control.
(d) Compliance. (1) In addition to the requirements of GAGAS, the
auditor shall determine whether the auditee has complied with laws,
regulations, and the provisions of contracts or grant agreements that may have
a direct and material effect on each of its major programs.
(2) The principal compliance requirements applicable to most
Federal programs and the compliance requirements of the largest Federal
programs are included in the compliance supplement.
(3) For the compliance requirements related to Federal
programs contained in the compliance supplement, an audit of these compliance
requirements will meet the requirements of this part. Where there have been
changes to the compliance requirements and the changes are not reflected in
the compliance supplement, the auditor shall determine the current compliance
requirements and modify the audit procedures accordingly. For those Federal
programs not covered in the compliance supplement, the auditor should use the
types of compliance requirements contained in the compliance supplement as
guidance for identifying the types of compliance requirements to test, and
determine the requirements governing the Federal program by reviewing the
provisions of contracts and grant agreements and the laws and regulations
referred to in such contracts and grant agreements.
(4) The compliance testing shall include tests of transactions
and such other auditing procedures necessary to provide the auditor sufficient
evidence to support an opinion on compliance.
(e) Audit follow-up. The auditor shall follow-up on prior audit
findings, perform procedures to assess the reasonableness of the summary
schedule of prior audit findings prepared by the auditee in accordance with
§ .315(b), and report, as a current year audit finding, when the auditor
concludes that the summary schedule of prior audit findings materially
misrepresents the status of any prior audit finding. The auditor shall
perform audit follow-up procedures regardless of whether a prior audit finding
relates to a major program in the current year.
(f) Data Collection Form. As required in § .320(b)(3), the auditor
shall complete and sign specified sections of the data collection form.
§ .505 Audit reporting.
The auditor's report (s) may be in the form of either combined or
separate reports and may be organized differently from the manner presented in
this section. The auditor's report(s) shall state that the audit was
conducted in accordance with this part and include the following:
(a) An opinion (or disclaimer of opinion) as to whether the financial
statements are presented fairly in all material respects in conformity with
generally accepted accounting principles and an opinion (or disclaimer of
opinion) as to whether the schedule of expenditures of Federal awards is
presented fairly in all material respects in relation to the financial
statements taken as a whole.
(b) A report on internal control related to the financial statements
and major programs. This report shall describe the scope of testing of
internal control and the results of the tests, and, where applicable, refer to
the separate schedule of findings and questioned costs described in paragraph
(d) of this section.
(c) A report on compliance with laws, regulations, and the provisions
of contracts or grant agreements, noncompliance with which could have a
material effect on the financial statements. This report shall also include
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an opinion (or disclaimer of opinion) as to whether the auditee complied with
laws, regulations, and the provisions of contracts or grant agreements which
could have a direct and material effect on each major program, and, where
applicable, refer to the separate schedule of findings and questioned costs
described in paragraph (d) of this section.
(d) A schedule of findings and questioned costs which shall include
the following three components:
(1) A summary of the auditor's results which shall include:
(i) The type of report the auditor issued on the
financial statements of the auditee (i.e., unqualified opinion, qualified
opinion, adverse opinion, or disclaimer of opinion);
(ii) Where applicable, a statement that significant
deficiencies in internal control were disclosed by the audit of the financial
statements and whether any such conditions were material weaknesses;
(iii) A statement as to whether the audit disclosed any
noncompliance which is material to the financial statements of the auditee;
(iv) Where applicable, a statement that significant
deficiencies in internal control over major programs were disclosed by the audit
and whether any such conditions were material weaknesses;
(v) The type of report the auditor issued on compliance
for major programs (i.e., unqualified opinion, qualified opinion, adverse
opinion, or disclaimer of opinion);
(vi) A statement as to whether the audit disclosed any
audit findings which the auditor is required to report under § .510(a);
(vii) An identification of major programs;
(viii)The dollar threshold used to distinguish between
Type A and Type B programs, as described in § .520(b); and
(ix) A statement as to whether the auditee qualified as
a low-risk auditee under § .530.
(2) Findings relating to the financial statements which are
required to be reported in accordance with GAGAS.
(3) Findings and questioned costs for Federal awards which
shall include audit findings as defined in § .510(a).
(i) Audit findings (e.g., internal control findings,
compliance findings, questioned costs, or fraud) which relate to the same
issue should be presented as a single audit finding. Where practical, audit
findings should be organized by Federal agency or pass-through entity.
(ii) Audit findings which relate to both the financial
statements and Federal awards, as reported under paragraphs (d)(2) and (d)(3)
of this section, respectively, should be reported in both sections of the
schedule. However, the reporting in one section of the schedule may be in
summary form with a reference to a detailed reporting in the other section of
the schedule.
§ .510 Audit findings.
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(a) Audit findings reported. The auditor shall report the following as
audit findings in a schedule of findings and questioned costs:
(1) Significant deficiencies in internal control over major
programs. The auditor's determination of whether a deficiency in internal
control is a significant deficieicny for the purpose of reporting an audit
finding is in relation to a type of compliance requirement for a major program
or an audit objective identified in the compliance supplement. The auditor
shall identify significant deficiencies which are individually or cumulatively
material weaknesses.
(2) Material noncompliance with the provisions of laws,
regulations, contracts, or grant agreements related to a major program. The
auditor's determination of whether a noncompliance with the provisions of
laws, regulations, contracts, or grant agreements is material for the purpose
of reporting an audit finding is in relation to a type of compliance
requirement for a major program or an audit objective identified in the
compliance supplement.
(3) Known questioned costs which are greater than $10,000 for
a type of compliance requirement for a major program. Known questioned costs
are those specifically identified by the auditor. In evaluating the effect of
questioned costs on the opinion on compliance, the auditor considers the best
estimate of total costs questioned (likely questioned costs), not just the
questioned costs specifically identified (known questioned costs). The
auditor shall also report known questioned costs when likely questioned costs
are greater than $10,000 for a type of compliance requirement for a major
program. In reporting questioned costs, the auditor shall include information
to provide proper perspective for judging the prevalence and consequences of
the questioned costs .
(4) Known questioned costs which are greater than $10,000 for
a Federal program which is not audited as a major program. Except for audit
follow-up, the auditor is not required under this part to perform audit
procedures for such a Federal program; therefore, the auditor will normally
not find questioned costs for a program which is not audited as a major
program. However, if the auditor does become aware of questioned costs for a
Federal program which is not audited as a major program (e.g., as part of
audit follow-up or other audit procedures) and the known questioned costs are
greater than $10,000, then the auditor shall report this as an audit finding.
(5) The circumstances concerning why the auditor's report on
compliance for major programs is other than an unqualified opinion, unless
such circumstances are otherwise reported as audit findings in the schedule of
findings and questioned costs for Federal awards.
(6) Known fraud affecting a Federal award, unless such fraud is
otherwise reported as an audit finding in the schedule of findings and
questioned costs for Federal awards. This paragraph does not require the
auditor to make an additional reporting when the auditor confirms that the
fraud was reported outside of the auditor's reports under the direct reporting
requirements of GAGAS.
(7) Instances where the results of audit follow-up procedures
disclosed that the summary schedule of prior audit findings prepared by the
auditee in accordance with § .315(b) materially misrepresents the status of
any prior audit finding.
(b) Audit finding detail . Audit findings shall be presented in
sufficient detail for the auditee to prepare a corrective action plan and take
corrective action and for Federal agencies and pass-through entities to arrive
at a management decision. The following specific information shall be
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included, as applicable, in audit findings:
(1) Federal program and specific Federal award identification
including the CFDA title and number, Federal award number and year, name of
Federal agency, and name of the applicable pass-through entity. When
information, such as the CFDA title and number or Federal award number, is not
available, the auditor shall provide the best information available to
describe the Federal award.
(2) The criteria or specific requirement upon which the audit
finding is based, including statutory, regulatory, or other citation.
(3) The condition found, including facts that support the
deficiency identified in the audit finding.
(4) Identification of questioned costs and how they were
computed.
(5) Information to provide proper perspective for judging the
prevalence and consequences of the audit findings, such as whether the audit
findings represent an isolated instance or a systemic problem. Where
appropriate, instances identified shall be related to the universe and the
number of cases examined and be quantified in terms of dollar value.
(6) The possible asserted effect to provide sufficient
information to the auditee and Federal agency, or pass-through entity in the
case of a subrecipient, to permit them to determine the cause and effect to
facilitate prompt and proper corrective action.
(7) Recommendations to prevent future occurrences of the
deficiency identified in the audit finding.
(8) Views of responsible officials of the auditee when there
is disagreement with the audit findings, to the extent practical.
(c) Reference numbers. Each audit finding in the schedule of findings
and questioned costs shall include a reference number to allow for easy
referencing of the audit findings during follow-up.
§ .515 Audit working papers.
(a) Retention of working papers. The auditor shall retain working
papers and reports for a minimum of three years after the date of issuance of
the auditor's report (s) to the auditee, unless the auditor is notified in
writing by the cognizant agency for audit, oversight agency for audit, or
pass-through entity to extend the retention period. When the auditor is aware
that the Federal awarding agency, pass-through entity, or auditee is
contesting an audit finding, the auditor shall contact the parties contesting
the audit finding for guidance prior to destruction of the working papers and
reports.
(b) Access to working papers . Audit working papers shall be made
available upon request to the cognizant or oversight agency for audit or its
designee, a Federal agency providing direct or indirect funding, or GAO at the
completion of the audit, as part of a quality review, to resolve audit
findings, or to carry out oversight responsibilities consistent with the
purposes of this part. Access to working papers includes the right of Federal
agencies to obtain copies of working papers, as is reasonable and necessary.
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.520 Major program determination.
(a) General. The auditor shall use a risk-based approach to determine
which Federal programs are major programs. This risk-based approach shall
include consideration of: Current and prior audit experience, oversight by
Federal agencies and pass-through entities, and the inherent risk of the
Federal program. The process in paragraphs (b) through (i) of this section
shall be followed.
(b) Step 1. (1) The auditor shall identify the larger Federal
programs, which shall be labeled Type A programs. Type A programs are defined
as Federal programs with Federal awards expended during the audit period
exceeding the larger of:
(i) $300,000 or three percent (.03) of total Federal
awards expended in the case of an auditee for which total Federal awards
expended equal or exceed $300,000 but are less than or equal to $100 million.
(ii) $3 million or three-tenths of one percent (.003) of
total Federal awards expended in the case of an auditee for which total
Federal awards expended exceed $100 million but are less than or equal to $10
billion.
(iii) $30 million or 15 hundredths of one percent (.0015)
of total Federal awards expended in the case of an auditee for which total
Federal awards expended exceed $10 billion.
(2) Federal programs not labeled Type A under paragraph (b) (1)
of this section shall be labeled Type B programs.
(3) The inclusion of large loan and loan guarantees (loans)
should not result in the exclusion of other programs as Type A programs. When
a Federal program providing loans significantly affects the number or size of
Type A programs, the auditor shall consider this Federal program as a Type A
program and exclude its values in determining other Type A programs.
(4) For biennial audits permitted under § .220, the
determination of Type A and Type B programs shall be based upon the Federal
awards expended during the two-year period.
(c) Step 2. (1) The auditor shall identify Type A programs which are
low-risk. For a Type A program to be considered low-risk, it shall have been
audited as a major program in at least one of the two most recent audit
periods (in the most recent audit period in the case of a biennial audit),
and, in the most recent audit period, it shall have had no audit findings
under § .510(a). However, the auditor may use judgment and consider that
audit findings from questioned costs under § .510(a)(3) and § .510(a)(4),
fraud under § .510(a)(6), and audit follow-up for the summary schedule of
prior audit findings under § .510(a)(7) do not preclude the Type A program
from being low-risk. The auditor shall consider: the criteria in § .525(c),
§ .525(d)(l), § .525(d)(2), and § .525(d)(3); the results of aTIdit
follow-up; whether any changes in personnel or systems affecting a Type A
program have significantly increased risk; and apply professional judgment in
determining whether a Type A program is low-risk.
(2) Notwithstanding paragraph (c)(1) of this section, OMB may
approve a Federal awarding agency's request that a Type A program at certain
recipients may not be considered low-risk. For example, it may be necessary
for a large Type A program to be audited as major each year at particular
recipients to allow the Federal agency to comply with the Government
Management Reform Act of 1994 (31 U.S.C. 3515). The Federal agency shall
notify the recipient and, if known, the auditor at least 180 days prior to the
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end of the fiscal year to be audited of OMB's approval.
(d) Step 3. (1) The auditor shall identify Type B programs which are
high-risk using professional judgment and the criteria in § .525. However,
should the auditor select Option 2 under Step 4 (paragraph (e) (2) (i) (B) of
this section), the auditor is not required to identify more high-risk Type B
programs than the number of low-risk Type A programs. Except for known
significant deficiencies in internal control or compliance problems as discussed
in § .525(b)(l), § .525(b)(2), and § .525(c)(l), a single criteria in
§ .525 would seldom cause a Type B program to be considered high-risk.
(2) The auditor is not expected to perform risk assessments on
relatively small Federal programs. Therefore, the auditor is only required to
perform risk assessments on Type B programs that exceed the larger of:
(i) $100,000 or three-tenths of one percent (.003) of
total Federal awards expended when the auditee has less than or equal to $100
million in total Federal awards expended.
(ii) $300,000 or three-hundredths of one percent (.0003)
of total Federal awards expended when the auditee has more than $100 million
in total Federal awards expended.
(e) Step 4. At a minimum, the auditor shall audit all of the
following as major programs:
(1) All Type A programs, except the auditor may exclude any
Type A programs identified as low-risk under Step 2 (paragraph (c) (1) of this
section).
(2) (i) High-risk Type B programs as identified under
either of the following two options:
(A) Option 1. At least one half of the Type B
programs identified as high-risk under Step 3 (paragraph (d) of this section),
except this paragraph (e) (2) (i) (A) does not require the auditor to audit more
high-risk Type B programs than the number of low-risk Type A programs
identified as low-risk under Step 2.
(B) Option 2. One high-risk Type B program for
each Type A program identified as low-risk under Step 2.
(ii) When identifying which high-risk Type B programs to
audit as major under either Option 1 or 2 in paragraph (e)(2)(i)(A) or (B),
the auditor is encouraged to use an approach which provides an opportunity for
different high-risk Type B programs to be audited as major over a period of
time.
(3) Such additional programs as may be necessary to comply with
the percentage of coverage rule discussed in paragraph (f) of this section.
This paragraph (e)(3) may require the auditor to audit more programs
as major than the number of Type A programs.
(f) Percentage of coverage rule . The auditor shall audit as major
programs Federal programs with Federal awards expended that, in the aggregate,
encompass at least 50 percent of total Federal awards expended. If the
auditee meets the criteria in § .530 for a low-risk auditee, the auditor
need only audit as major programs Federal programs with Federal awards
expended that, in the aggregate, encompass at least 25 percent of total
Federal awards expended.
(g) Documentation of risk. The auditor shall document in the working
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papers the risk analysis process used in determining major programs.
(h) Auditor's judgment. When the major program determination was
performed and documented in accordance with this part, the auditor's judgment
in applying the risk-based approach to determine major programs shall be
presumed correct. Challenges by Federal agencies and pass-through entities
shall only be for clearly improper use of the guidance in this part. However,
Federal agencies and pass-through entities may provide auditors guidance about
the risk of a particular Federal program and the auditor shall consider this
guidance in determining major programs in audits not yet completed.
(i) Deviation from use of risk criteria . For first-year audits, the
auditor may elect to determine major programs as all Type A programs plus any
Type B programs as necessary to meet the percentage of coverage rule discussed
in paragraph (f) of this section. Under this option, the auditor would not be
required to perform the procedures discussed in paragraphs (c), (d), and (e)
of this section.
(1) A first-year audit is the first year the entity is audited
under this part or the first year of a change of auditors.
(2) To ensure that a frequent change of auditors would not
preclude audit of high-risk Type B programs, this election for first-year
audits may not be used by an auditee more than once in every three years.
§ .525 Criteria for Federal program risk.
(a) General. The auditor's determination should be based on an
overall evaluation of the risk of noncompliance occurring which could be
material to the Federal program. The auditor shall use auditor judgment and
consider criteria, such as described in paragraphs (b), (c), and (d) of this
section, to identify risk in Federal programs. Also, as part of the risk
analysis, the auditor may wish to discuss a particular Federal program with
auditee management and the Federal agency or pass-through entity.
(b) Current and prior audit experience . (1) Weaknesses in internal
control over Federal programs would indicate higher risk. Consideration
should be given to the control environment over Federal programs and such
factors as the expectation of management's adherence to applicable laws and
regulations and the provisions of contracts and grant agreements and the
competence and experience of personnel who administer the Federal programs.
(i) A Federal program administered under multiple
internal control structures may have higher risk. When assessing risk in a
large single audit, the auditor shall consider whether weaknesses are isolated
in a single operating unit (e.g., one college campus) or pervasive throughout
the entity.
(ii) When significant parts of a Federal program are
passed through to subrecipients, a weak system for monitoring subrecipients
would indicate higher risk.
(iii) The extent to which computer processing is used to
administer Federal programs, as well as the complexity of that processing,
should be considered by the auditor in assessing risk. New and recently
modified computer systems may also indicate risk.
(2) Prior audit findings would indicate higher risk,
particularly when the situations identified in the audit findings could have a
significant impact on a Federal program or have not been corrected.
(3) Federal programs not recently audited as major programs
EPA Tribal, U.S. Territories Insular Areas Administrative and Financial Guidance for Assistance Agreements
Last September 2013 271 of 519
-------
may be of higher risk than Federal programs recently audited as major programs
without audit findings.
(c) Oversight exercised by Federal agencies and pass-through entities .
(1) Oversight exercised by Federal agencies or pass-through entities could
indicate risk. For example, recent monitoring or other reviews performed by
an oversight entity which disclosed no significant problems would indicate
lower risk. However, monitoring which disclosed significant problems would
indicate higher risk.
(2) Federal agencies, with the concurrence of OMB, may
identify Federal programs which are higher risk. OMB plans to provide this
identification in the compliance supplement.
(d) Inherent risk of the Federal program. (1) The nature of a
Federal program may indicate risk. Consideration should be given to the
complexity of the program and the extent to which the Federal program
contracts for goods and services. For example, Federal programs that disburse
funds through third party contracts or have eligibility criteria may be of
higher risk. Federal programs primarily involving staff payroll costs may
have a high-risk for time and effort reporting, but otherwise be at low-risk.
(2) The phase of a Federal program in its life cycle at the
Federal agency may indicate risk. For example, a new Federal program with new
or interim regulations may have higher risk than an established program with
time-tested regulations. Also, significant changes in Federal programs, laws,
regulations, or the provisions of contracts or grant agreements may increase
risk.
(3) The phase of a Federal program in its life cycle at the
auditee may indicate risk. For example, during the first and last years that
an auditee participates in a Federal program, the risk may be higher due to
start-up or closeout of program activities and staff.
(4) Type B programs with larger Federal awards expended would
be of higher risk than programs with substantially smaller Federal awards
expended.
§ .530 Criteria for a low-risk auditee.
An auditee which meets all of the following conditions for each of the
preceding two years (or, in the case of biennial audits, preceding two audit
periods) shall qualify as a low-risk auditee and be eligible for reduced audit
coverage in accordance with § .520:
(a) Single audits were performed on an annual basis in accordance with
the provisions of this part. A non-Federal entity that has biennial audits
does not qualify as a low-risk auditee, unless agreed to in advance by the
cognizant or oversight agency for audit.
(b) The auditor's opinions on the financial statements and the
schedule of expenditures of Federal awards were unqualified. However, the
cognizant or oversight agency for audit may judge that an opinion
qualification does not affect the management of Federal awards and provide a
waiver.
(c) There were no deficiencies in internal control which were
identified as material weaknesses under the requirements of GAGAS. However,
the cognizant or oversight agency for audit may judge that any identified
material weaknesses do not affect the management of Federal awards and provide
a waiver.
EPA Tribal, U.S. Territories and Insular Areas Administrative and Financial Guidance for Assistance Agreements
Last September 2013 272 of 519
-------
(d) None of the Federal programs had audit findings from any of the
following in either of the preceding two years (or, in the case of biennial
audits, preceding two audit periods) in which they were classified as Type A
programs:
(1) Internal control deficiencies which were identified as
material weaknesses;
(2) Noncompliance with the provisions of laws, regulations,
contracts, or grant agreements which have a material effect on the Type A
program; or
(3) Known or likely questioned costs that exceed five percent
of the total Federal awards expended for a Type A program during the year.
Appendix A to Part - Data Collection Form (Form SF-SAC)
[insert SF-SAC after finalized]
Forms can now be submitted electronically at http://harvester.census.gov/fac/.
Appendix B to Part - Circular A-133 Compliance Supplement
Note: Provisional OMB Circular A-133 Compliance Supplement is
available from the Office of Administration, Publications Office,
room 2200, New Executive Office Building, Washington, DC 20503.
OMB Circular A-133 Compliance Supplement 2011
-------
Other Assistance Agreement Forms
EPA U.S.. EPA
http://www.epa.gov/ogd/forms/adobe/EPA%20190-F-004-001.pdf
U.S. EPA PAYMENT REQUEST
Recipient Name:
Fax*
Contact Person:
Phone #:
Email add»ess:
| ACH #
Cash on Hand
TOTAL AMOUNT REQUESTED $
I certify th« to *ie bnt a*
-------
• ( 11 •
r: ' 4wi-53 for
http://www.epa.gov/ogd/forms/adobe/5700-53 sec.pdf (EPA no longer requires this form)
Rum fffpmt OMB HO 203040X) Hfpowl Bpiw MW13
LOBBYING AND LITIGATION CERTIFICATION FOR GRANTS
AND COOPERATIVE AGREEMENTS *
INSTRUCTIONS:
*At project completion, complete this form pursuant to the 2 001 Department of Velar are Affairs «nd Housing and Urban
Development, and Independent Appropriations Act, Public Law 106-377, Section 424 and 2000 Department of ¥et*rtns
Affairs ant! Housing and Urban Development, and Independent Appropriations Act, Public Law 106-74, Section 426 and
»ny other subsequent Appropriation Art i*qud»tn«ttt«.
Ple»semail tasfotm toyour EPA GtartSpecialislwittirilJO days of project completion. DO NOT send this informal!on
to the Office of Management & Bucket
Asa stance Apeement Numbers):
1 h*«by certify that none of toes* funds have bwn us*d to «tt§»g* in. th* lobbying of the Federal
GovsrtMnent ct1 in litigation a^inst the United Slates unless tuthctizedujiJer existing law.
of the Cha«f Ex ecutive Officer Date
PnntN*me
-Tl» asuiial pibtoe Kporimg •&*& recosd ^eejai^bm^enfoi'thM collection of mfon^atkaiis ejtmtaded toa^aage 5 immtes per
^iimsiK tlig kitai tmie, «fl£)it, ortu^nrtallfisciuic^ eKpend#db^p«i^on5ki geneiate, nuirdai}\ %tau\ De
ion to cr for a Fe&aal 5ge»cy. Tlsis mefeide Ske tmsa aseded to review iM5taM:tions,d&\^k]f'f ac^isre, kytali, andu
fc* tlse jtuijeses &f eolleeteiig,
istsitg ways Is
dkel^e the
ew»nt{y raM OMB (es
-------
EPA Key
http://www.epa.gov/ogd/forms/adobe/5700-542.pdf
Print Form
Form Approved OMB No:2030-0020 Approval Expires 07/31/09
vvEPA
ADDITIONAL KEY CONTACTS
(Use as many sheets as needed.)
Major Co-Investigators: Individual responsible for the completion oj major portions of the proposed
work.
Name:
Title:
Mailing Address:
Phone Number:
FAX Number:
E-Mail Address:
Web URL:
Major Co-Investigators: Individual responsible for the completion oj major portions of the proposed
work.
Name:
Title:
Mailing Address:
Phone Number:
FAX Number:
E-Mail Address:
Web URL:
Major Co-Investigators: Individual responsible for the completion of major portions of the proposed
work.
Name:
Title:
Mailing Address:
Phone Number:
FAX Number: _
E-Mail Address:
Web URL:
EPA Form 5700-54 (Rev 4-02)
EPA Tribal, U.S. Territories and Insular Areas Administrative and Financial Guidance for Assistance Agreements
Last Updated September 2013 page 276 of 519
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SF
Download this from at
http://www.whitehouse.gov/sites/default/files/omb/assets/grants forms/SF-425.pdf
FEDERAL FINANCIAL REPORT
W fcnni instmcitlons)
. Federal Agency and Organisational QrarraHrt
to Which lieport is stfbrnmad
2. rodural Grani ur Odser Kitsitif^ng Nuirrtxjr Asaj^ifx) by Fu?te
( lo rBfjort mujlHplSfi e /. i^asis of Aeciottnltnij
Quartefiy
Semi -Annual
Annual
Final E Cash c Accrual
tiny Period Cud DaEt1
h, Day, Year)
1 CurrwiaStve
(Use Sines a-c for single or muSiple grant reporting)
Federal Cash (To report multiple grants, also use FFR Attachment!:
a. Cash Rewipls
b. Cash Disbursements
G. Cast! on Hand (line « minus b)
Use Sines &-o for single grant repotting)
Federal Expenditures and Unobligated Balance:
d. 1 otai f efleral ftmrts atsthorl/efl
e, F etferaJ siiare of e*pendilures
i. f- ederal sfiare ot Linltcjjidated otsiyitfjons
g, i ttai f- er;nflec3 in accortfctrtcn wttlt trio aiWltloti aluiniaMvc
o. Unoxpondtxi program incofne (lino 1 rnSntis line rn or line n)
a Jypo b Rate
n.inciruct
Expense
S
E Period!' ram Period To d. Case e. Amoif
„ £ a 1 oiafs:
2. Remsfks: Aitsch any e^pferrafrons (fe©mEtc/ necesssry or f/rfwirefo? r&quif&d hy Federal sponsoring agency in compliance
it Charged 1. Todcral £3sarc
with governing legislation;
13. Cerfification: By signing this report, f cerlafy to tnebestof rny knowledge and bettef that the report is true, complete, and accurate, and the expenditures,
disbursements and cash receipts are for tie purposes and intent set forth in the award documents. I am aware ttiat any false, fictitious or fraudulent information
may subject me to criminal, civil, or administrative penalties, (U.S. Code, Title IS, Section 10019
a. typed or Printed Name and title or Airttort/ed Oertttyntt o
). Signature of Authorised CertMyiriy Official
iclal c. ieiej}
d. Hnai
e, Dale
14, Apll
ione(Are;icofle, n irrftpr anct exten^onj
adflress
Report Subnimet] (Monlh. Day. Year
tcyuseoiify.
Paperwork Burden
-------
Download these instructions at
http://www.whitehouse.gov/sites/default/files/omb/grants/standard forms/SF-
425 instructions.pdf
Federal Financial Report Instructions
Report Submissions
1) Recipients will he instructed by Federal agencies to submit the Federal Financial Report (FFR) to
a single location, except when an automated payment management reporting system is utili/ed. In
this case, a second submission location may he required by the agency.
2) If recipients need more space to support their FFRs, or FFR Attachments, they should provide
supplemental pages. These additional pages must indicate the following information at the top of
each page: Federal grant or other identifying number (if reporting on a single award), recipient
organization. Dala Universal Numbering System (DUNS) number. Employer Identification Number
(KIN), and period covered by the report.
Reporting Requirements
1) The submission of interim FFRs will be on a quarterly, semi-annual, or annual basis, as directed by
the Federal agency. A final FFR shall be submitted at the completion of the award agreement. The
following reporting period end dates shall be used for interim reports: 3/31, 6/30, 9/30, or 12/31. For
final FFRs. the reporting period end date shall be the end date of the project or grant period.
2) Quarterly and semi-annual interim reports shall be submitted no later than 30 days after the end of
each reporting period. Annual reports shall be submitted no later than 90 days after the end of each
reporting period. Final reports shall he submitted no later than 90 days after the project or grant
period end date.
Note: For single award reporting:
1) Federal agencies may require both cash management information on lines 10(a) through 10(c) and
financial status information lines 10(d) through 10(o).
2) 10(b) and 10(e) may nol be the same until (he final report.
Line Item Instructions for the Federal Financial Report
FFR
Number
Reporting Item
Instructions
Cover Information
1
~>
3
4a
4b
5
Federal Agency and
Organizational Element to
Which Report is Submitted
Federal Grant or Other
Identifying Number
Assigned by Federal
Agency
Recipient Organization
DUNS Number
BIN
Recipient Account Number
or Identifying Number
1 inter the name of the Federal agency and organizational element
identified in the award document or as instructed by the agency.
For a single award, enter the grant number assigned to the award by the
Federal agency. For multiple awards, report this information on the FFR
Attachment. Do not complete this box if reporting on multiple awards.
Enter the name and complete address of the recipient organization
including /.ip code.
Enter the recipient organization's Data Universal Numbering System
(DUNS) number or Central Contract Registry extended DUNS number.
Enter the recipient organization's Employer Identification Number (EIN).
1 inter the account number or any other identifying number assigned by the
recipient to the award. This number is for the recipient's use only and is
not required by the Federal agency. For multiple awards, report this
Revised 6/28/2010
-------
FFR
Number
6
7
8
9
10
Reporting Item
Report Type
Basis of Accounting
(Cash/Accrual)
Project/Granl Period.
From: (Month, Day, Year)
Project/Grant Period, To:
(Month, Day. Year)
Reporting Period End
Date: (Month. Day. Year)
Instructions
information on the FFR Attachment. Da not complete this box if
reporting on multiple awards.
Mark appropriate box. Do not complete this box if reporting on multiple
a wards.
Specify whether a cash or accrual basis was used for recording
transactions related to the award(s) and for preparing this FFR. Accrual
basis of accounting refers to the accounting method in which expenses are
recorded when incurred. For cash basis accounting, expenses are recorded
when they are paid.
Indicate the period established in the award document during which
Federal sponsorship begins and ends.
Note: Some agencies award multi-year grants for a project period that is
funded in increments or budget periods (typically annual increments).
Throughout the project period, agencies often require cumulative
reporting for consecutive budget periods. Under these circumstances,
enter the beginning and ending dates of the project period not the budget
period.
Do not complete tins line if reporting on multiple awards.
See the above instructions for "Project/Grant Period, From: (Month, Day,
Year)."
Enter the ending date of the reporting period. For quarterly, semi-annual.
and annual interim reports, use the following reporting period end dates:
3/3 1 . 6/30. 9/30. or 12/31. For final FFRa, the reporting period end date
shall be the end date of the project or grant period.
Transactions
1 inter cumulative amounts from date of the inception of the award through the end date of the
reporting period specified in line 9.
Use Lines lOa through lOc. Lines lOd through lOo, or Lines lOa through lOo. as specified by the
Federal agency, when reporting on single grants.
Use Line 12. Remarks, to provide any information deemed necessary to support or explain F'FR data.
Federal Cash (To report multiple grants, also use FFR Attachment)
lOa
lOb
lOc
Cash Receipts
Cash Disbursements
Cash On Hand (Line lOa
Minus Line lOb
Enter the cumulative amount of actual cash received from the Federal
agency as of the reporting period end dale.
Enter the cumulative amount of Federal fund disbursements (such as cash
or checks) as of the reporting period end date. Disbursements are the sum
of actual cash disbursements for direct charges for goods and services, the
amount of indirect expenses charged to the award, and the amount of cash
advances and payments made to subrecipients and contractors.
For multiple grants, report each grant separately on the FFR Attachment,
The sum of the cumulative cash disbursements on the FFR Attachment
must equal the amount entered on Line lOb, FFR.
Enter the amount of Line lOa minus Line lOb. This amount represents
immediate cash needs. If more than three business
days of cash are on hand, the Federal agency may require an explanation
Revised 6/28/2010
-------
FFR
Number
Reporting Item
Instructions
on Line 12, Remarks, explaining why the drawdown was made
prematurely or other reasons for the excess cash.
Federal Expenditures and Unobligated Balance: Do nol complete this section if reporting on multiple
awards.
lOd
!0c
lOf
IQg
lOh
Total Federal Funds
Authorized
•ederal Share of
Expenditures
Federal Share of
Unliquidated Obligations
Total Federal Share (Sum
of Lines lOeand lOf)
Unobligated Balance of
Federal Funds (Line lOd
Minus Line lOg)
Enter the total Federal funds authorized as of the reporting period end
dale.
inter the amount of Federal fund expenditures. For reports prepared on a
cash basis, expenditures are the sum of cash disbursements for direct
charges for property and services: the amount of indirect expense charged;
and the amount of cash advance payments and payments made to
subrecipients. For reports prepared on an accrual basis, expenditures are
the sum of cash disbursements for direct charges for property and services;
the amount of indirect expense incurred; and the net increase or decrease
in the amounts owed by the recipient for (1 ) goods and other property
"eceived; (2) services performed by employees, contractors, subrecipients.
and other payees; and (3) programs for which no current services or
performance are required. Do not include program income expended in
accordance with the deduction alternative, rebates, refunds, or other
credits. (Program income expended in accordance with the deduction
alternative should be reported separately on Line lOo.)
Unliquidated obligations on a cash basis are obligations incurred, but not
yet paid. On an accrual basis, they are obligations incurred, but for which
an expenditure has not yet been recorded. Enter the Federal portion of
unliquidated obligations. Those obligations include direct and indirect
expenses incurred but nol yel paid or charged to the award, including
amounts due to subrecipients and contractors. On the final report, this line
should be zero unless the awarding agency has provided other
instructions.
Do not include any amount in Line lOftliat lias been reported in Line lOe.
Do not include any amount in Line I Of for a future commitment of funds
(such as a long-term contract) for which an obligation or expense has not
been incurred.
Enter the sum of Lines lOe and lOf.
Enter the amount of Line lOd minus Line lOg.
Recipient Share: Do not complete this section if reporting on multiple awards.
iOi
1'otal Recipient Share
Required
inter the total required recipient share for reporting period specified in
line 9. The required recipient share should include all matching and cost
sharing provided by recipients and third-party providers to meet the level
required by the Federal agency. This amount should not include cost
sharing and match amounts in excess of the amount required by Ihe
Federal agency (for example, cost overruns for which the recipient incurs
additional expenses and. therefore, contributes a greater level of cost
Revised 6/28/2010
-------
FFR
Number
IQj
10k
Reporting Item
Recipient Share of
Expenditures
Remaining Recipient Share
to be Provided (Line lOi
Minus LinelOj)
Instructions
sharing or match than the level required by the Federal agency).
Enter the recipient share of actual cash disbursements or outlays (less any
rebates, refunds, or other credits) including payments to subrecipients and
contractors. This amount may include the value of allowable third party
in-kind contributions and recipient share of program income used to
finance the non-Eederal share of the project or program. Note: On the
final report this line should be equal to or greater than the amount of Line
lOi.
Failer the amount of Line lOi minus Line lOj. If recipient share in Line
IQj is greater than the required match amount in Line lOi. enter zero.
Program Income: Do not complete this section if reporting on multiple awards.
101
10m
lOn
lOo
11
lla
lib
lie
lid
lie
111'
llg
I btal Federal Program
income Earned
Program Income Expended
in Accordance With the
Deduction Alternative
Program Income Expended
in Accordance With the
Addition Alternative
Unexpended Program
Income (Line 101 Minus
Line 10m or Line lOn)
Enter the amount of Federal program income earned. Do not report any
program income here that is being allocated as part of the recipient's cost
sharing amount included in LinelOj.
Enter the amount of program income that was used to reduce the Federal
share of the total project costs.
Enter the amount of program income that was added to funds committed
to the total project costs and expended to further eligible project or
program activities.
Enter the amount of Line 101 minus Line 10m or Line lOn. This amount
equals the program income that has been earned hut not expended, as of
the reporting period end date.
Indirect Expense: Complete this information only if required by the awarding agency. Enter
cumulative amounts from date of the inception of the award through the end date of the reporting
period specified in line 9.
Type of Rate(s)
Rate
'eriod From; Period To
Base
Amount Charged
Federal Share
Totals
State whether indirect cost rate(s) is Provisional. Predetermined. Final, or
Fixed.
Enter the indirect cost rate(s) in effect during the reporting period.
Enter the beginning and ending effective dates for the rate(s).
Enter the amount of the base against which the rate(s) was applied.
Enter the amount of indirect costs charged during the time period
specified. (Multiply 1 Ib. x 1 Id.)
Enter the Federal share of the amount in 1 le.
Enter the totals for columns 1 Id. 1 le. and 1 If.
Remarks, Certification, and Agency Use Only
12
13a
13b
13c
13d
Remarks
Typed or Printed Name and
Title of Authorized
Certifying Official
Signature of Authorized
Certifying Official
Telephone (Area Code.
Number and Extension)
E-mail Address
Enter any explanations or additional information required by the Federal
sponsoring agency including excess cash as stated in line lOc.
Enter the name and title of the authorized certifying official.
The authorized certifying official must sign here.
Enter the telephone number (including area code and extension) of the
individual listed in Line 1 3a.
Enter the e-mail address of the individual listed in Line 13a.
Revised 6/28/2010
-------
FFR
Number
13c
14
Reporting Item
Date Report Submitted
(Month, Day, Year)
Agency Use Only
Instructions
Enter the date the FFR is submitted to the Federal agency using the
month, day, year format.
This section is reserved for Federal agency use.
Revised 6/28/2010
EPA Tribal, U.S. Territories and Insular Areas Administrative and Financial Guidance for Assistance Agreements
Last Updated September 2013 page 282 of 519
-------
http://www.whitehouse.gov/sites/default/files/omb/grants/approved forms/sf-425a.pdf
FEDERAL FINANCIAL REPORT ATTACHMENT
(For reporting multiple grants)
1. FeQeraf Ag«ncy and Qfgarfzallonaf Element 2. Recipient Organization (Bc« 3 on Page li
to Which Report Is Submtted {Box I on Page 1]
3a. DUNSNunb«r
Paae of
CLfniiative Feder^ Cash OfsbifseTnent
s
S o.oo
-------
Line Item Instructions for the Federal Financial Report Attachment
(To be completed if reporting on cash management activity for multiple grants.)
Box
Number
1
2
3a
3b
4
5
Reporting Item
Federal Agency and
Organizational Element to
Which Repoit is Submitted
Recipient Organization
DUNS Number
EIN
Reporting Period End Date:
(Month, Day, Year)
Federal Grant Number
Recipient Account Number
Cumulative Federal Cash
Disbursement
Total
Instructions
Enter the name of the Federal agency and organizational element
identified in the award document or otherwise instructed by the agency.
(This information should be identical to that entered in Box 1, FFR.)
Enter the name and complete address of the recipient organization
including zip code. (Same information as entered in Box 3, FFR.)
Enter the recipient organization's Data Universal Numbering System
(DUNS) number or Central Contract Registry extended DUNS number.
(Same information as entered in Box 4a, FFR.)
Enter the recipient organization's Employer Identification Number (EIN).
(Same information as entered in Box 4b, FFR.)
Enter the ending date of the reporting period of this report. (Same
information as entered in Box 9, FFR,)
Enter the grant number assigned to each award by the Federal agency.
Enter the account number or any other identifying number assigned by the
recipient to each award. This number is for the recipient's use only and is
not required by the Federal agency.
Enter the cumulative amount of the Federal share of cash disbursed for
each award. Cash disbursements are the sum of actual cash disbursements
for direct charges for goods and services, the amount of indirect expenses
charged to the award, and the amount of cash advances and payments
made to subrecipients and contractors.
Enter the total for the Cumulative Cash Disbursement. This column
should equal the amount reported on Line lOb, FFR.
EPA Tribal, U.S. I erritories and Insular Areas Administrative and Financial Guidance; for Assistance Agreements
Last Updated September 2013 page 284 of 519
-------
SF r ,
http://www.epa.gov/ogd/forms/adobe/SF3881.pdf
Pointers for Completing SF 3881 Form
To answer some of questions that vendors and agencies have raised when completing the vendor
enrollment form and prevent some of the mistakes that have occurred, the FMS is presenting
these additional pointers.
1. The Federal agency initiates the SF 3881 form to enroll its vendors to receive payment by
electronic funds transfer.
2. A vendor must complete a separate enrollment form (SF 3881) for each agency with which it
does business.
3. In the Agency Information Section, the term "AGENCY IDENTIFIER" means the acronym
by which the agency is known. For example, the "AGENCY IDENTIFIER" for the Financial
Management Service is FMS.
4. In the Payee/Company Information Section, it should be noted that the "TAXPAYER ID
NO." may be used by the Government to collect and report on any delinquent amounts arising out
of the offerer's relationship with the Government (31 U.S.C. 7701 (c) (3)).
5. The financial institution and the vendor should each keep a copy of the completed form.
6. The vendor should return the completed SF 3881 to the agency that initiated the form.
EPA Tribal, U.S. Territories and insular Areas Administrative and Financial Guidance for .Assistance Agreements
Last Updated September 2013 page 285 of 519
-------
ACH VENDOR/MISCELLANEOUS PAYMENT
ENROLLMENT FORM
OMB No. 15)0-0056
This form is used for Automated Clearing House (ACH! payments with an addendum record that contains
payment-related information processed through the Vendor Express Program. Recipients of these
payments should bring this information to the attention of their financial institution when presenting this
form for completion. See reverse for additional instructions.
PRIVACY ACT STATEMENT
The following information is provided to comply with the Privacy Act of 1974 (P.L, 93-579). All
information collected on this form is required under the provisions of 31 U.S.C. 3322 and 31 CFR
210. This information will be used by the Treasury Department to transmit payment data, by
electronic means to vendor's financial institution. Failure to provide the requested information may
delay or prevent the receipt of payments through the Automated Clearing House Payment System.
AGENCY INFORMATION
FEDERAL PROGRAM AGfiNCY
U. S . Environmental
AGENCY IDENTIFIER:
LVFC
ADDRESS:
PO Box 98515
Pr ot e ct i on Ag e nc y
AGENCY LOCATION CODE 1ALCJ: ACH FORMAT:
63123933 Ixl CCD +
^J CTX
Las Vegas, NV 89193-8515
CONTACT PERSON NAME:
ADDITIONAL INFORMATION:
FAX Number: (702) 798-2423
TELEPHONE NUMBER:
( 702 ) '-"?# J4bl,
PAYEE/COMPANY INFORMATION
NAME
S3W NO- OR TAXPAYER ID NO.
ADDRESS
CONTACT PERSON NAME;
TELEPHONE NUMBER;
( }
FINANCIAL INSTITUTION INFORMATION
NAMSi
ADDRESS.
ACH COORDINATOR NAME:
TELEPHONE NUMBER:
( )
NINE -DIGIT ROUTING TRANSIT NUMBER:
DEPOSITOR ACCOUNT TITLE:
DEPOSITOR ACCOUNT NUMBER:
LOCKBOX NUMBER:
TYPE OF ACCOUNT:
^J CHECKING ^J SAVINGS ^J LOCKBOX
SIGNATURE AND TITLE OF AUTHORIZED OPRCIAL:
iCoutd be the same as ACH Coordinate?)
TELEPHONE NUMBER:
{ )
AUTHORIZED FOR LOCAL REPRODUCTION
1 (Rev. 2,'26
Prescribed b^ Department of Treas
31 U 5 C 3322: 31 CFR 210
-------
Instructions for Completing SF 3881 Form
Make three copies of form after completing. Copy 1 is the Agency Copy; copy 2 is the
Payee/Company Copy; and copy 3 is the Financial Institution Copy.
1. Agency Information Section - Federal agency prints or types the name and address of
the Federal program agency originating the vendor/miscellaneous payment, agency
identifier, agency location code, contact person name and telephone number of the
agency. Also, the appropriate box for ACH format is checked.
2, Payee/Company Information Section - Payee prints or types the name of the
payee/company and address that will receive ACH vendor/miscellaneous payments,
social security or taxpayer ID number, and contact person name and telephone number
of the payee/company. Payee also verifies depositor account number, account title, and
type of account entered by your financial institution in the Financial Institution
Information Section.
3. Financial Institution Information Section - Financial institution prints or types the name
and address of the payee/company's financial institution who will receive the ACH
payment, ACH coordinator name and telephone number, nine-digit routing transit
number, depositor (payee/company) account title and account number. Also, the box
for type of account is checked, and the signature, title, and telephone number of the
appropriate financial institution official are included.
Burden Estimate Statement
The estimated average burden associated with this collection of information is 15 minutes
per respondent or recordkeeper, depending on individual circumstances. Comments
concerning the accuracy of this burden estimate and suggestions for reducing this burden
should be directed to the Financial Management Service, Facilities Management Division,
Property and Supply Branch, Room B-101, 3700 East West Highway, Hyattsville, MD
20782 and the Office of Management and Budget, Paperwork Reduction Project
(1510-00561, Washington, DC 20503.
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Replace text with personnel, deliverables, and dates required by your award. Keep in a handy yet confidential
location.
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Purchasing Supplies, Equipment, and Services Under EPA Grants to
Local Governments
http://www.epa.gov/ogd/grants/nonprofit/supply.htm
1 - IP
As a recipient of EPA grants and cooperative agreements, you will likely need to buy supplies,
equipment, and services to complete your project. This guidance will help you meet EPA
requirements when making such necessary purchases.
This guidance is not intended for State governments. Only certain portions of EPA's regulations
(40 CFR 31.36) apply to States which should review that regulation to determine the applicable
EPA requirements.
The Uniform Administrative Requirements for Grants and Cooperative Agreements to State and
Local Governments (40 CFR Part 31) applies to EPA grants and cooperative agreements to State,
local, and Tribal governments. (From now on, the term "grants" will be used to refer to both types
of assistance agreements.) If you receive assistance under the "Cooperative Agreements and
Superfund State Contracts for Superfund Response Actions" regulation (40 CFR Part 35, Subpart
O), you will be required to follow requirements which differ from or supplement the provisions of
40 CFR Part 31. The Subpart O requirements are not described in this guidance.
Most of this guidance is devoted to the acquisition procedures § 31.36 prescribes for local
governments. The rule requires that when States acquire property and services with grant funds,
they must follow the same policies and procedures they use when making purchases with non-
Federal funds. In addition, States must include in every grant-supported purchase order or
contract all clauses required by Federal statute and executive orders.
EPA often calls purchasing under grants "procurement", but in this guidance we use the term
"purchasing".
This guidance does not apply to obtaining the services of individual consultants. A consultant is a
person who has expertise in a particular field (specialized skills) and who serves solely in an
advisory capacity and is paid at a daily or hourly rate. A consultant primarily provides views or
opinions on problems or questions you present. The term includes experts or persons with
excellent qualifications and a high degree of attainment in a professional, scientific, technical, or
other field. If you obtain the services of a contractor and the terms of the contract provide you
with the responsibility for the selection, direction, and control of the individuals who will be
providing services under the contract at an hourly or daily rate of compensation the identified
individual is likely a consultant.
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EPA has limits on its participation in payments for consultants, so if you have questions as to
whether a particular individual is a consultant, you should contact your project officer or grants
specialist for assistance.
This guidance also does not apply to subgrants. A subgrant is an award of financial assistance in
the form of money, or property in lieu of money, which you make to an eligible subrecipient. The
term "subgrant" does not encompass recipient purchases. EPA has other guidance applicable to
subgrants. Contact your project officer or grants specialist for that guidance. (You cannot make a
subgrant to a profit-making organization.)
BASIC REQUIREMENTS FOR PURCHASING SYSTEMS
It is unlikely you will purchase the supplies, equipment, and services you need for your grant at an
auction, but EPA's purchasing guidance and requirements are designed to ensure that what you
buy you get at a reasonable price in a fair and openly competitive way. Many EPA grant recipients
have their own purchasing requirements and systems. If you have your own system and it meets
the minimum standards of the EPA regulations as explained in this guidance, you may use that
system. If your system does not comply, you may modify your system or make adjustments as
needed so that your grant-supported purchases are made in accordance with the minimum EPA
requirements.
The following sections of this guidance are based on and provide cross-references to the applicable
regulations and can help ensure you have a strong purchasing system which will ensure you make
sound purchasing decisions.
RESPONSIBILITY
You are responsible for the settlement and satisfaction of all contractual and administrative issues
arising out of contracts under your grant. Your purchasing system should establish procedures you
will follow if disputes, claims, protests of award, source evaluation or other matters of a
contractual nature arise. EPA will not substitute its judgment for yours unless the matter is
primarily a Federal concern. You must refer violations of law to the Federal, State or local
authority with jurisdiction (31.36(b)(ll) and (12)). If you receive a bid protest, you must also
notify EPA (40 CFR 31.36(b)(12)).
You must ensure you do not purchase unnecessary things under your grant.
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You must evaluate whether it is most economical to lease rather than purchase equipment and
supplies. (40 CFR 31.36(b)(4)). Equipment is tangible, nonexpendable, personal property having a
useful life of more than one year and an acquisition cost of $5,000 or more per unit. You may use
your own definition of equipment provided that such definition would at least include all equipment
defined above.
Also, EPA may disallow the costs of some activities or purchases you make under the grant, even
though the activities and purchases were identified in your application. If, at any time, EPA finds
that an activity or purchase is not necessary or does not comply with EPA regulations, EPA may
disallow the cost. For example, if your approved grant application indicated you would be using
the services of a contractor, but EPA later determines you did not obtain the contractor's services
in accordance with EPA's minimum standards, EPA may disallow the cost.
CODE OF CONDUCT
You must have written standards of conduct which apply to employees involved in the award and
administration of contracts for supplies, equipment, and services. (40 CFR 31.36(b)(3)). The code
must ensure that:
• Your employee, officer or agent (employee) does not participate in the selection, award, or
administration of a contract under an EPA grant if the employee, any of the employee's
family members or partners, or an organization which employs or is about to employ any
of these persons, has a financial or other interest in the organization selected for the
contract. This would be an inappropriate conflict of interest.
• Your employee does not solicit or accept gratuities, favors, or anything of monetary value
from your contractors. You may, however, set standards for situations in which the
financial interest is not substantial or the gift is an unsolicited item of nominal value.
• If any of your employees violate the code, the code must make them subject to
disciplinary action.
COMPETITION
You must, to the extent possible, provide full and open competition in your purchasing (40 CFR
31.36(c)(l)). Some situations that are indicators of unnecessarily restricted competition include:
• Imposing unreasonable requirements on firms in order for them to compete for your
business.
• Requiring unnecessary experience and excessive bonding.
• Allowing noncompetitive pricing practices between firms or between affiliated companies.
• Making noncompetitive awards to consultants that are on retainer contracts.
• Permitting organizational conflicts of interest.
• Specifying only a "brand name" product instead of allowing "an equal" product to be
offered and describing the performance of other relevant requirements of the
procurement.
• Taking any arbitrary action during the purchasing process.
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COST AND PRICE REVIEW
Your purchasing system must ensure the cost or price of your supplies, equipment, and services is
reasonable (40 CFR 31.36(f)). You do this by conducting a cost or price analysis for each
procurement action. This analysis must be documented in your files.
• Price analysis includes the comparison of price quotations submitted, market prices, bid
prices for firm fixed price contracts or similar information.
• Cost analysis is the review and evaluation of each element of cost to determine
reasonableness.
You must determine the method and depth review based on the facts surrounding your particular
situation. As a starting point, you must make independent estimates of expected prices or costs
before receiving bids or proposals. Appendix A to this guidance explains the type of reviews you
must do in various situations.
DISADVANTAGED BUSINESS OPPORTUNITY
You must make positive efforts to use disadvantaged businesses, including small businesses,
minority-owned firms, women's business enterprises, and firms in labor surplus areas, whenever
possible (40 CFR 31.36(e)). Actions you must take to accomplish this include:
• Ensuring that small businesses, minority-owned firms, and women's business enterprises
are used to the fullest extent practicable by including them on solicitation lists.
• Assuring that small businesses, minority-owned firms, and women's business enterprises
are solicited whenever they are potential sources.
• Dividing total requirements, when economically feasible, into smaller tasks or quantities to
permit maximum participation by small businesses, minority-owned firms, and women's
business enterprises.
• Establishing delivery schedules, where the this is possible based on the timing of the need
for the work, which encourage participation by small businesses, minority-owned firms,
and women's business enterprises.
• Using the services and assistance of the Small Business Administration, and the Minority
Business Development Agency of the Department of Commerce.
• Requiring the prime contractor, if subcontracts are to be let, to take the same step as
those listed above.
DEBARMENT AND SUSPENSION
You must ensure you do not award a contract to any person (organization or individual) debarred
or suspended or otherwise excluded from or ineligible for participation in Federal assistance
programs (40 CFR 31.35). You must also ensure your contractor does not award a subcontract to
any person debarred or suspended or otherwise excluded from or ineligible for participation in
Federal assistance programs.
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You can find the list of debarred, suspended, and excluded persons at:
WWW_Sarn,C10V EX IT Disclaimer
When searching this site, search by the name of the contractor, not by agency, to ensure all
debarred, suspended or otherwise excluded contractors are found. Some debarred contractors are
ineligible under only certain programs. You must check the cause and treatment code to
determine the circumstances related to each contractor. It may be necessary to contact the
agency which imposed the suspension, debarment or exclusion to determine the effect of the
action.
RECORDS
You must maintain records that detail the history of each purchase (40CFR 31.36(b)(9)). These
records must include the rationale for the method of procurement, the reason you selected the
contract type, your justification for lack of competition when competitive bids or offers are not
obtained, the reasons for contractor selection or rejection, and the basis for the contract price,
including documentation of required price and cost analyses (Appendix A).
CONTRACT PROVISIONS
You must ensure your contracts are sound and complete under applicable state and local law. Your
contracts must also reflect the provisions listed in Appendix B. If your standard contracts meet the
requirements of Appendix B, the clauses need not be repeated.
If you suspect or you receive reports that a contractor violated the EPA required contract
provisions you must report those violations to your EPA project officer.
If EPA awards you a grant involving construction contracts in excess of $2000, the Federal statute
for the program under which the grant is awarded may require compliance with the Davis-Bacon
Act. The Davis-Bacon Act requires contractors to pay wages to laborers and mechanics at least
equal to minimum wages specified in wage determinations made by the Secretary of Labor. In
such cases you must require your contractors to pay wages to laborers and mechanics at least
equal to minimum wages specified in a wage determination made by the Secretary of Labor, you
must place a copy of the current prevailing wage determination issued by the Department of Labor
in each solicitation, and you must condition your award of a contract on the acceptance of the
wage determination. You must report all suspected or reported violations of Davis-Bacon Act
requirements to the EPA project officer.
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CONTRACT TYPES
You must decide which contract type is appropriate given the circumstances of each purchase. You
may use your standard contract types for contracts under your EPA grant. Contract types include:
• Fixed price contracts. Fixed price contracts are used when there is a complete product
description or specifications. The contractor must furnish the goods or services for the
fixed price, and so assumes significant risk. Profit is not stated or negotiated separately.
A fixed price contract generally is not appropriate if the work involves significant
technical or engineering unknowns. Purchase orders and credit-card purchases, typically
used for low-dollar transactions, are examples of fixed-price contracts.
• Cost reimbursement contracts. You should use a cost reimbursement contract only when it
is not feasible to award a fixed price contract. The contractor's cost and fees must be
separately stated in the contract. Cost reimbursement contracts can be riskier because
you must pay the contractor's reasonable costs fees even if the project is not
successfully completed before the contract expires. To minimize the risk of unacceptable
cost growth, you may be able to negotiate contractual ceilings on the total cost and/or
on indirect costs.
• Cost Plus Type Contracts Prohibited. Percentage of construction cost and cost plus a
percentage-of- cost contracts provide an incentive for the contractor to increase costs in
order to increase profit. These contract types must not be used.
CONSTRUCTION CONTRACT BONDS
You must ensure EPA's interest in construction or facility improvement contracts under grants is
adequately protected. Construction bid and bond requirements are listed in Appendix C.
You must determine the purchasing method (examples below) and contract type that best fits
your needs and circumstances.
SMALL PURCHASE METHOD
Small purchase is a relatively simple and informal method for purchasing supplies, equipment, and
services that do not cost more than $100,000. (40 CFR 1.36(d)). (Your organization may have
lower small purchase limits in its procedures. If so, follow those limits.)
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Generally, you should review catalogs or obtain price quotes from three or four vendors who can
meet your needs. You should select the lowest priced item or service which meets your
requirements. You must, of course ensure:
• The employee selecting the offer does not have a conflict of interest with any of the
organizations contacted.
• You make it possible for and encourage disadvantaged businesses to provide offers, to the
extent possible.
• The offer is not from a debarred or suspended person.
• If you selected other than the lowest priced supply, equipment, or service, keep a written
record explaining why.
• You keep files of the purchase, including the list of vendors contacted and the prices of
each.
• You do not need to obtain bid or performance bonds for small purchases.
SEALED BID OR FORMALLY ADVERTISED PURCHASING METHOD
For purchases with an estimated price of more than $100,000, the sealed bid purchasing method
is generally preferable to other methods if the successful bid can be determined based mostly on
price. Under this method, you must advertise for firm-fixed-price proposals or bids from capable
vendors. The bids are opened at a previously announced time and place, and may be attended by
any member of the public (including the bidders). The contract (lump sum or unit price) must be
awarded to the responsible bidder whose bid conforms to the terms and conditions of the
solicitation and is the lowest in price.
Sealed bidding is feasible if:
• You have a complete, adequate, and realistic specification or purchase description.
• It is likely there are two or more responsible bidders willing and able to compete for the
contract.
• The purchase will result in a firm fixed price contract and the selection of the successful
bidder can be made principally on the basis of price.
If you use the sealed bidding method, you must:
• Publicly advertise an invitation for bids allowing potential bidders sufficient time to prepare
bids before the public bid opening. The advertisement must make clear that any or all
bids may be rejected if there is a sound documented reason. The advertisement must
contain:
o A clear, accurate description of the technical requirements for the supplies,
equipment or service to be purchased.
o Requirements which the bidder must meet and all other factors you will use to
evaluate bids.
o A description, whenever practicable, of technical requirements in terms of
functions to be performed or performance required, including the range of
acceptable characteristics or minimum acceptable standards.
o The specific features of "brand name or equal" descriptions that bidders are
required to meet when such items are included in the solicitation.
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• Take steps to involve disadvantaged businesses (see section on Disadvantaged Business
Utilization in Chapter 1), including sending known firms the advertisement requesting
bids.
• Include specifications and attachments which define the item or supplies, equipment, or
service to be purchased in the advertisement. If the specifications are voluminous, they
may be referenced, along with an instruction specifying when and where they may be
examined, copied, or purchased.
• Publicly open bids at the time and place announced in the advertisement.
• Select the responsible bidder whose bid is the lowest priced responsive bid.
o Where specified in bidding documents, factors such as discounts, transportation
cost, and life cycle costs may be considered in determining which bid price is the
lowest.
o If you decide to award the contract to other than the lowest-price bid, notify the
EPA project officer to allow for the project officer's EPA review, if requested. (See
Section on EPA pre-purchase review below.)
o Before awarding a contract, ensure the selected bidder is not debarred,
suspended, or otherwise excluded. (See the Debarment and Suspension section
in Chapter 1 for instructions on determining whether a bidder is debarred or
suspended.) If the selected bidder is debarred or suspended, reject that bidder's
bid and select the next best bidder, if the price is reasonable.
• Include in the signed contract the appropriate contract provisions (See Appendix B).
• If the contract is for construction work, require the contractor to provide appropriate bid,
performance, and payment bonds when the contract is signed. (See Appendix C).
If you award a fixed-price contract award to the lowest-priced bidder who competed against at
least one other bidder, no further price or cost review is required.
COMPETITIVE PROPOSAL PURCHASING METHOD
When it is not appropriate to use the sealed bidding method (i.e., the award cannot be made
based primarily on price) for purchases exceeding $100,000, the next most preferred method is
generally called the competitive proposal method. Under this method, you will evaluate factors
such as the offerer's capability, the likelihood that the offerer's proposed management and
technical approaches will meet your needs, the qualifications of the offerer's proposed project
staff, the availability of necessary resources, the offerer's past performance record, and whether
the offerer's proposed cost or price is reasonable. This method can be used for either a fixed price
or a cost reimbursement type contract.
If you use the competitive proposal method, you must:
• Publicly advertise your request for proposals (RFP) identifying the nature of supplies,
equipment, or services needed, the evaluation factors and their relative importance, a
preference.
• Take steps to involve disadvantaged businesses (see section on Disadvantaged Business
Utilization in Chapter 1), including sending known firms the advertisement requesting
offers.
• Develop a system for conducting technical and cost/price evaluations of the proposals to
select the successful offerer.
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• Use the evaluation system and the RFP criteria to select the responsible firm whose
proposal is most advantageous, recording the selection decision in a document which
summarizes the results of the evaluation of all timely proposals and explains why the
selected proposal is most advantageous.
• Include the appropriate contract provisions in the signed contract. (See Appendix B.)
• If the contract is for construction work, require the contractor to provide appropriate bid,
performance, and payment bonds when the contract is signed.
• If offerers are required to submit the elements of their proposed cost, you must conduct a
cost analysis to determine whether their proposed costs are reasonable. Offerers must
set forth their proposed fees or profit separately. (See Appendix A.)
To obtain architectural/engineering (A/E) professional services, you may use a qualifications-based
form of the competitive proposal method. This method allows you to select the most qualified
competitor based on the technical evaluation, subject to negotiation of fair and reasonable
compensation. If you cannot reach agreement on price with that A/E firm, you can open price
negotiations with the next most qualified firm. Before awarding the contract, you must conduct a
cost analysis and include it in the procurement/contract file. (See Appendix A.)
NON-COMPETITIVE OR SOLE SOURCE PURCHASING METHOD
The noncompetitive purchasing method is authorized whenever one of the following occurs:
• You determine the item or service is available from only one source.
• You determine public exigency or emergency will not permit a delay resulting from
competition.
• You request and obtain EPA approval to use the noncompetitive proposal method for some
other reason.
• Only one bidder or offerer responds to a solicitation issued to several sources.
You must conduct a cost analysis of noncompetitive proposals. (See Appendix A.)
You must notify the EPA project officer before using the non-competitive proposal purchasing
method. The project officer will likely instruct you to submit the proposed contract, and related
information, including cost information provided by the bidder and your justification for the non-
competitive method, for EPA review.
EPA and other Federal agency staff may review your purchasing activities before or after award.
EPA's approval of your grant does not mean that the allowability of the costs of the proposed
activities and purchases identified in your application will never be questioned. If, at any time, EPA
finds that an activity or purchase was not necessary or did not comply with EPA regulations, EPA
may disallow the cost (40 CFR 31.43(a)(2)). For example, if your grant application indicated you
would be using the services of a contractor, but you obtain the contractor's services in a way that
does not comply with EPA's minimum standards, EPA may disallow the entire contract cost.
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EPA PRE-PURCHASE REVIEW
You must give the EPA project officer the opportunity to review information related to your
purchases before you sign contracts if (40 CFR 31.36(g)(l) and (2):
• Your purchasing procedures or operation fail to comply with the standards in EPA
regulations.
• Your purchase is expected to exceed $100,000 and is to be awarded without competition
or you receive only one bid or offer which exceeds $100,000 in response to a solicitation.
• Your purchase exceeds $100,000 and specifies a "brand name" product.
• Your proposed contract exceeds $100,000 and is to be awarded to other than the apparent
low bidder under a sealed bid procurement.
• You propose a contract modification which changes the scope of your contract or increases
the contract amount by more than the $100,000.
You must contact your EPA project officer for guidance as soon as you are aware of any of these
situations.
If you are a new recipient of an EPA award or if you have had purchasing problems under previous
EPA grants or reviews, EPA's project officer or grants specialist may review your procurement
system before approving an award. EPA will contact you in such cases.
EPA POST-PURCHASE REVIEW
EPA may also review your purchases after they are made. EPA staff may review your management
systems for compliance with EPA requirements. We may conduct a desk review, in which case we
will review any information we have in our files, find on the internet, or request and receive from
you. This may include information related to particular purchases. We may also conduct a review
at your location (on-site review). The reviewers will evaluate much the same information as under
a desk review. EPA staff will contact you to arrange on-site reviews so they are as convenient as
possible for you. Our review will evaluate your compliance with EPA requirements, including
Disadvantaged Business Utilization, contract clauses, record keeping, cost and price review, as
well as your purchasing methods.
SINGLE AND EPA AUDIT
If you spend $500,000 for fiscal years ending after December 31, 2003 or more in a year in
Federal (not just EPA) grant funds, you must obtain a single or program-specific audit in
accordance with the requirements of OMB Circular A-133. You can find the Circular at:
http://www.whitehouse.gov/sites/default/files/otnb/assets/al33/al33 revised 2007.pdf
E:
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If you receive only one federal grant and elect to do a program specific audit, it is likely your
auditor will review your purchasing practices under EPA's grant. If you elect to have you auditor
conduct a single audit, the auditor may review your EPA grant purchases.
Also, EPA's Office of Inspector General or the General Accounting Office (GAO) may conduct an
audit of your EPA grants. EPA and GAO auditors are likely to review your purchasing system as
well as your purchases. These audits will be planned and performed in such a way as to build upon
work performed by your auditors.
APPENDIX A
CONDUCTING PRICE AND COST ANALYSES
EPA regulations require you to conduct a price or cost review for each purchase and for each
contract modification you make to support you grant (40 CFR 31.36(f)).
PRICE ANALYSIS
A "price analysis" is an evaluation of a proposed price, without regard to the contractor's separate
cost elements and proposed profit, to determine the price is reasonable. Before completing a
purchase, you must conduct a price analysis for each small purchase ($100,000 or less) and for
each fixed price contract. The following guide will assist you in completing required price reviews.
Cost Estimate - Develop an independent cost estimate for the supplies, equipment, or service you
will be purchasing. This estimate may be based on such things as you and your staff's experience
with similar purchases, a review of catalog or off-the-shelf prices, or other relevant information.
Typically, the persons who develop the detailed plans and specifications for a fixed price contract
will develop a detailed price estimate.
Comparison of Prices - Compare prices obtained from catalogs, suppliers, or bidders to your
independent estimate.
Price Reasonableness -
A. If the offerer or bidder's price appears reasonable based on your independent estimate and
other appropriate information, purchase the supply, equipment, or service.
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B. If the offerer or bidder's price is significantly higher than your independent estimate, review
your requirements to determine whether unnecessary, overly restrictive, or complex requirements
caused the higher than expected price. (Even if the price is significantly lower than expected, you
should review the stated requirement or plans and specifications to ensure they are complete and
will result in the supply, equipment, or service you need.) If legally permissible, it may help, in
making your determination, to talk to those providing quotes or bids; otherwise, you should
consider cancelling the solicitation, make any necessary revisions/corrections, and resoliciting
offers or bids. You may wish to consult your attorney to determine is such discussions are allowed.
COST ANALYSIS
A "cost analysis" is the evaluation of each major contract cost category to determine
reasonableness of each category and of the total cost of a contract or change order. You must
perform a cost analysis if you require offerers to specify the elements (e.g., personnel, fringe
benefits, travel, subcontracting, indirect costs, profit) of their proposed total contract cost. A cost
analysis is also necessary whenever competition is lacking, and for sole source procurements,
contract modifications, and change orders.
To obtain the information you need to conduct a cost analysis, you must instruct offerers to
provide cost data with their offers. EPA does not prescribe a form for this cost data, so unless you
have a standard form, offerers may submit their cost data in any appropriate format. If legally
authorized, you should require offerers to certify that the cost information they submit is
complete, current, and accurate. You should consult your attorney to determine if you can require
a certification.
The following is a general list of cost categories under which contractors will submit cost
information, and guidance on how you should evaluate each category:
Personnel Costs - Costs for labor directly related to the contract.
For Example the offerer will likely provide information that looks like this :
7 Category
Professional
Nonprofessional
Clerical
Estimated
Hours
300
2000
800
X
X
X
Hourly
Rate
$30.00
25.00
15.00
Total Direct Personnel Cost
——
^
_
$ 9,000
50,000
12,000
$71,000
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Consider:
A. Whether the level of effort or the total amount of time proposed is consistent with the effort
required to complete the contract.
B. The labor mix or the labor categories proposed to ensure they are consistent with the difficulty
and technical nature of the work - professional versus nonprofessional versus clerical.
C. The proposed salaries, including reasonable escalation factors to ensure they are consistent
with the offerers' actual pay scales. Generally, the conversion of annual salaries into hourly rates
is accomplished by dividing the annual salary by 2,087 hours (assuming an 8 hour work day).
Fringe Benefits - Personnel costs other than employees' direct salary or pay (i.e., employer's
portion of PICA insurance, retirement, sick leave, holiday pay, and vacation cost. While these costs
are normally accumulated in a pool and allocated using percentages as shown below, offerers may
calculate actual fringe benefit costs for each employee who will work on your job. Either method is
acceptable if applied consistently.
Example:
Category
Professional
Nonprofessional
Clerical
Estimated
Fringe
Benefit Rate
10%
10%
10%
X
X
X
Total
Hourly
Pay
$9,000
50,000
12,000
Total Fringe Benefit Cost
=
—
=
Fringe
Benefit
Amount
$ 900
5,000
1,200
$7,100
Consider:
A. Whether the fringe benefit rate applied to the direct labor base corresponds to fringe benefits
available to each of the proposed labor categories and are consistent with the offerer's established
benefits package.
B. Whether the offerer's PICA and unemployment insurance are applied only up to the maximum
salary limits established by statute, if any.
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Indirect Costs - Indirect costs are costs which cannot be charged to a project specific activity.
Indirect costs often include office space, equipment depreciation, and personnel costs for clerical
pools, executive salaries, and administrative support. Each organization determines the costs it
will include in its indirect cost pool, and the organization must treat the costs the same in all
cases. Indirect costs are allocated to the particular contracts based on a fair method of
approximation, generally a percentage of a specific set of direct costs under the contract. Indirect
costs are also referred to as overhead or burden costs.
Indirect costs should be logically grouped and compared to some part or all of the organization's
direct costs (the base). The most popular base is direct labor; however, there are instances where
an equitable allocation cannot be made using this base.
Example:
T
Category
Indirect Cost
Rate
50%
X
Direct Labor
Base
$71,000
Total Indirect Cost
Cost
$35,000
$35,000
Consider:
A. Whether the allocation base is an equitable basis for distribution.
B. Confirm that the proposed overhead rate is the same the offerer uses in other contracts.
Travel and per Diem Costs - Travel costs include transportation, per diem or subsistence, and
other reasonable travel costs directly related to the contract.
-------
Example:
1
Transportation
Private Vehicle-Office to job
site and return
Private Vehicle-Office to
EPA and return
Transp or tation
Flight to attend contract
related meeting
Per Diem
Number of
Mies
50
20
Origin
Dallas
Number of
Days
10
X
X
X
Rate per
MUe
$ .30
.30
Bsfc
Waco
Rate per
Day
$75.00
Total Travel and Per Diem Cost
=
=
Amount
$15.00
$6.00
$210.00
$750.00
$991.00
Consider:
A. Whether the proposed travel is necessary.
B. Whether all people traveling on a trip are necessary.
C. The cost per trip is reasonable.
D. Whether the per diem or subsistence allowance is the same for other travel by the offerer's
personnel.
Supply. Material and Equipment Costs - Offerers will often have costs for supplies, material, and
equipment (tangible, nonexpendable, personal property having a useful life of more than one year
and an acquisition cost of $5,000 or more per unit), material, and supplies directly related to the
contract.
-------
Example:
1 Item
Recording Barometers
"Wind Turbine Generator
Incremental Water
Quality Samplers
Aluminum Tubing
Miscellaneous
Supplies
Quantity
5
1
5
1500ft.
X
X
X
X
Cost per
Item
$ 455
6,370
1,600
.70ft.
Total Equipment, Materials, Supply Cost
—
_
Cost
$2,275
6,370
8,000
1,050
2,105
$19,800
Consider:
A. Whether the proposed equipment is needed to complete the contract Equipment is tangible,
nonexpendable, personal property having a useful life of more than one year and an acquisition
cost of $5,000 or more per unit. You may use your own definition of equipment provided that such
definition would at least include all equipment defined above.)
B. Whether leasing or renting the equipment would be less costly than purchasing it.
C. Whether the proposed materials and supplies are needed, and the estimated costs appear
reasonable.
Subcontract Costs - Subcontracts are contracts awarded by your contractor.
-------
Example:
Total Subcontract Costs (Should
be broken down among categories
if subcontract exceeds $100,000.)
Profit
Cost
$100,000
10,000
Total Cost
$110.000
Consider:
A. If the contractor awards subcontracts based on a firm-fixed price, you will only have the lump
sum bid amount for the subcontractor. Assure the bid is reasonable based on estimates or
catalogs or other information you have available.
B. If the subcontractor provides cost data, you must conduct a cost review of those subcontracts
in excess of $100,000 in the same manner as for prime contracts.
C. For subcontracts of $100,000 or less, you may conduct an abbreviated review, evaluating only
the cost and profit of each subcontract. (Profit for offerers and subcontractors should be evaluated
based on the profit section below.)
Profit - Profit is the amount paid to a contractor above the total cost of the contract.
You should ensure that cost-reimbursement contractors get paid a profit which is fair and
reasonable. Although there are no hard and fast rules for reviewing proposed fees or profits, you
should consider such things as complexity of the work to be performed, the risk borne by the
contractor, the contractor's investment, the amount of subcontracting, the quality of the
contractor's record of past performance, and industry profit rates in the surrounding geographical
area for similar work..
-------
Example:
TotaFDirect & Indirect
Costs
Fees
Price
$100,000
10,000
Total Cost
S110.000
Consider:
A. The offerer's risk. Generally, the greater the risk the contractor assumes, the higher the rate of
profit. Contractors assume greater risks on fixed-price contracts involving complex or difficult
tasks as opposed to cost reimbursement contracts.
B. Fees may also be higher if the contractor incurs significant capital costs, exercises considerable
ingenuity, or does independent developmental work.
C. Percentage of construction cost and cost plus a percentage cost contracts provide an incentive
for the contractor to increase costs in order to increase profit. These contract types must not be
used.
Cost Analysis Findings
After you complete a cost analysis, you must determine whether the proposed contract cost is
reasonable. If the individual items are reasonable, the total cost is reasonable. You should award
the contract.
A. If you find an individual cost is not reasonable, you should discuss the cost with the contractor.
If, based on the contractor's justification, you and the contractor reach agreement that the cost is
reasonable, accept the cost. If you and the contractor agree the cost is excessive, negotiate a
reduction to a reasonable amount and accept the cost.
B. If you cannot agree with the contractor concerning the reasonableness of proposed costs, reject
that contractor's offer. If the next highest ranked offer meets your requirements, you should
review proposed cost information for that contractor. Follow the same review and negotiation
process as above for the new contractor's proposed costs.
-------
Documentation
Document all actions in conducting each price or cost analysis. Ensure all price and cost analyses
are described and retained in your records in accordance with your record retention requirements
or EPA's.
APPENDIX B
CONTRACT PROVISIONS
You must ensure your contracts are sound and complete under applicable state and local law. Your
contracts must also reflect the provisions required by federal law and EPA regulations which are
listed below (40 CFR 31.36(i)).. To the extent these requirements are met by provisions in your
standard contracts, they need not be repeated.
1. Remedies - Contracts must include administrative, contractual, and legal remedies for use in
cases in which contractors violate or breach contract terms. The contract must also make clear the
remedial actions which you may take.
2. Termination - Contracts in excess of $10,000 must explain the conditions under which you may
terminate them for cause or for your convenience, including the process for bringing about the
termination and the basis for settlement.
3. Equal Employment Opportunity - Construction contracts in excess of $10,000 must require
compliance with Executive Order 11246, "" Equal Employment Opportunity," as amended by
Executive Order 11375, " "Amending Executive Order 11246 Relating to Equal Employment
Opportunity," and as supplemented by regulations at 41 CFR Part 60, " "Office of Federal Contract
Compliance Programs, Equal Employment Opportunity, Department of Labor."
You can find information on Equal Employment Opportunity at the Department of Labor web-
site: http://library.dol.gov/dol/compliance/comp-eeo.htm EXIT Disclaimer
4. Copeland " "Anti-Kickback" Act (18 U.S.C. 874 and 40 U.S.C. 276c) - Construction contracts
must require compliance with the Copeland " "Anti-Kickback" Act (18 U.S.C. 874), as
supplemented by Department of Labor regulations (29 CFR part 3, " "Contractors and
Subcontractors on Public Building or Public Work Financed in Whole or in Part by Loans or Grants
from the United States"). The Act prohibits contractors from inducing, by any means, any person
employed in the construction, completion, or repair of public work, to give up any part of the
compensation to which he is otherwise entitled.
-------
You can find information on the Copeland "Anti-Kickback" Act at the Department of Labor web-
site: http://www.dol.gov/dol/compliance/comp-copeland.htm Ewrpisciai-nei
5. Davis-Bacon Act, as amended (40 U.S.C. 276a to a-7) - Some EPA statutes authorizing grants
require that construction contracts which exceed $2,000 to comply with the Davis-Bacon Act (40
U.S.C. 276a to a-7), as supplemented by Department of Labor regulations (29 CFR part 5,
Labor Standards Provisions Applicable to Contracts Governing Federally Financed and Assisted
Construction"). Under this Act, contractors must pay wages to laborers and mechanics at a rate
not less than the minimum wages specified in a wage determination made by the Secretary of
Labor. In addition, contractors must pay wages not less than once a week.
You can find information about the Davis-Bacon Act, including prevailing wage rates, on the
Department of Labor web-site: http://www.dol.gov/dol/compliance/comp-dbra.htm EXIT Disclaimer
6. Contract Work Hours and Safety Standards Act (40 U.S.C. 327-333) - (a) Construction
contracts which exceed $2,000 or other contracts that involve the employment of mechanics or
laborers which exceed $2,500 must require compliance with sections 102 and 107 of the Contract
Work Hours and Safety Standards Act (40 U.S.C. 327-333), as supplemented by Department of
Labor regulations (29 CFR part 5). Section 102 of the Act requires that the wages of every
mechanic and laborer be computed on the basis of a standard 40 hour work week. A mechanic or
laborer must be paid at a rate of not less than one and 1/2 times the basic rate of pay for all hours
worked in excess of 40 hours in the work week.
(b) Construction contracts which exceed $100,000 must provide that no laborer or mechanic may
be required to work in surroundings or under working conditions which are unsanitary, hazardous
or dangerous. (This requirement does not apply to the purchase of supplies or materials or articles
ordinarily available on the open market, or contracts for transportation or transmission of
intelligence.)
You can find information on the Contract Work Hours and Safety Standards Act on the Department
of Labor web-site: http://library.dol.gov/dol/compliance/comp-cwhssa.htm EXIT Disclaimer
7. Rights to Inventions, copyrights, and rights in data - Your contracts must contain a notice of
EPA's requirements and regulations pertaining to patent rights with respect to any discovery or
invention which arises or is developed by the contractor, and to copyrights and rights in data. Your
contract must reference the license, described in 40 CFR 31.34, EPA reserves in any work you or
your contractor develop or acquire with EPA financial assistance.
8. Records - Your contracts must allow you, EPA, the Comptroller General of the United States, or
any of their duly authorized representatives, access to any books, documents, papers and records
of the contractor directly pertinent to your contract for the purpose of making audits,
-------
examinations, excerpts and transcriptions (40 CFR 31.42(e)). In addition, your contracts must
require the contractor to retain all contract-related records for three years after the contractor
receives final payment. Some EPA program regulations (e.g., 40 CFR Part 35, Subpart O)
prescribe longer record retention periods which apply to you and to your contractors.
9. Debarment and Suspension - Contracts must prohibit contractors from awarding any
subcontract expected to equal or exceed $25,000 to persons (individuals or organizations) listed
on the Excluded Parties List System (EPLS) which is available
at: http://www.sam.gov/ ExiTDisciai-nei
The list contains the names of persons debarred, suspended, or otherwise excluded by agencies,
and contractors declared ineligible under statutory or regulatory authority other than Executive
Order 12549.
10. Energy and Environmental Conservation. - Contracts must require contractors to comply with
standards and policies relating to energy efficiency which are contained in the state energy
conservation plan issued in compliance with the Energy Policy and Conservation Act (Pub. L. 94-
163, 89 Stat. 871).
11. Byrd Anti-Lobbying Amendment (31 U.S.C. 1352) - Contractors who apply or bid for an
contract of more than $100,000 must file a certification that it will not and has not used Federally
appropriated funds to pay any person or organization for influencing or attempting to influence an
officer or employee of any agency, a Member of Congress, officer or employee of Congress, or an
employee of a Member of Congress in connection with obtaining your grant. The contract must
also require that any subcontractor who applies or bids for subcontract in excess of $100,000
must provide a similar certification to the next higher tier contractor or subcontractor. Contractor
and subcontractors must also disclose any lobbying with non-Federal funds in connection with
obtaining the grant. Each contractor or subcontractor must forward any disclosures from tier to
tier up to the recipient.
APPENDIX C
CONSTRUCTION CONTRACT BONDS
You must ensure EPA's interest in construction or facility improvement contracts under grants is
adequately protected. You must at least meet the following minimum standards (40 CFR
31.36(h)).
-------
1. For construction or facility improvements contracts which are $100,000 or less, unless your
grant indicates otherwise, you may follow your own requirements relating to bid guarantees,
performance bonds, and payment bonds. The grant will include a term and condition advising you
of any additional EPA requirements if required by statute.
2. For construction or facility improvements contracts which exceed $100,000, unless EPA
authorizes different limits or requirements, you must require:
• Bidders to provide a bid guarantee equivalent to five percent of the bid price. The bid
guarantee may be a firm commitment such as a bid bond, certified check, or other
negotiable instrument accompanying a bid to ensure the bidder will accept award of a
contract if you accept the bidder's bid.
• Successful bidders to provide a performance bond for 100 percent of the contract price to
ensure fulfillment of the contractor's obligations under the contract.
• Successful bidders to provide a payment bond for 100 percent of the contract price. A
payment bond ensures payment as required by law to all persons supplying labor and
material under the contract.
-------
Samples and Examples
Checklist
(sample)
REGION 9
OPTIONAL GUIDELINES FOR 40 CKR TRIBAL GRAM' RECIPIENTS
Pilot -Checklist for Tribes - Review of Financial/Administrative Systems
(Customize - as needed)
i response to Tribal requests for assistance in reviewing their Administrative/Financial systems and determining whether
they meet federal grants requirements, the attached checklist may be of help.
Item
Fll.KSandRKCORDS
Do you keep a copy of or know where to
find the current EPA grant regulations and
OMB circulars?
Who in your office keeps copies of:
- Grant application (SF-424A form)
{including work plan)
- Grant award (SF-570Q-20A form) and
any amendments
- Rebudgei requests
- Workplan progress reports
- Payment requests (SF-270 form)
- Financial Stains reports (SF-269A form)
- Contracts under grant
- indirect cost rate agreement
Yes
No
Guidance
-40 Code of Federal Regulations (CFR)-
current year
-Office Of Management and Budget
(OMB) Circular"A-87 (amended~8/29/97)
- Internet: hUp://w\\ w.epa.gov/ogtl
Comments
REGION 9 OPTIONAL GUIDELINES: Pilot -Checklist for Tribes - Review of Financial/Administrative Systems
Hem
Do you have written procedures for how
long you retain grant records and
documents?
- Types of records to be kepi
- Length of time
ACCOUNTING
Do you keep the basic books of accounts
(electronically or otherwise)?
- General ledger
- Cash receipts journal
- Cash disbursement journal
- Payroll journal
- Income journal
- Purchase journal
- General journal
Does your accounting system provide for
tracking and recording non-federal share
(match) costs?
- How are costs identified?
- How are they charged to the grant?
- Who keeps the source documents tor the
match costs?
Yes [ No
Guidance
40 CFR- Part 3 1 .42 - Retention and Access
requirements for records
-31.42(a)
-31.42(b)and(c)
40 CFR- Part 3 1 .20 (b)- Standards for
Financial Management Systems
40 CFR- Part 3 1 .24- Matching or Cost
sharing
Comments
EPA Tribal, U.S. Territories and Insular Areas Administrative and Financial Guidance for Assistance Agreements
Last Updated September 2013 page 311 of 519
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REGION 9 OPTIONAL GUIDELINES: Pilot -Checklist for Tribes - Review of Financial/Administrative Systems
Hem
Yes
No
Guidanee
Comments
Do you have written aecounting
procedures?
- Accounting records
- Internal Control
- Budget Control
- Cash Management
- Allowable Cost
- Source documentation
40 CI R- Part 31.20 (b)- Standards Cor
Financial Management Systems
-31.20(b)(2)
-31.20(b)(3)
-31.20(b)(4)
-31.20(b)(7>
- 31.20 (b)(5) and also OMB Circular A-87
- 31.20 (b)(6) and also OMB-A-87 -
Attachment B - t+l I (personnel records)
ACCOUNTING (cont'd)
Do you track the budgeted grant expenses
versus the actual grant expenses?
- How?
- How often?
- Who does it?
- Provide a sample of your tracking
document.
40 CFR - Part 31.20 (b)(4) Budget Control
Is your organization subject to the single
audit requirement?
- If yes, when was the last audit
performed?
- If yes, how do you calculate the amount
of costs charged to the grants?
OMB Circular A-133
- Organizations that spend more than
5300,000 of federal funds in one year.
- OMB Circular A-87, Attachment B- #5
(Audit Services)
REGION 9 OPTIONAL GUIDELINES: Pilot -Checklist for Tribes - Review of Financial/Administrative Systems
Item
PERSONNEL
Do you have written personnel procedures
and/or a policy?
- Personnel salary ranges
- Personnel position duties/responsibilities
- Holiday /vacation/sick/other leave
- Fringe benefits
Do stall working part-time or full-time on
EPA grants or other activities have time
sheets?
- Provide copy of signed time sheet.
TRAVEL
Do you have written travel procedures or
policies?
- Actual or per diem costs
- Established mileage rates
- Travel requests/authorization/approval
requirements
- 1 low travel is charged to proper
activities?
Yes
No
Guidance
- OMB Circular A-87
- Attachment A, C. (Basic Guidelines)
- Attachment B »1 1 (Compensation for
Personnel Services)
OMH-87 Circular- Attachment B - II] 1
Compensation for Personnel Costs.
40 CI-'R, Part 3 1.20 (a)(2) and (5) and (6)-
Standards for Financial Management,
Accounting records, Allowable cost, source
documentation
- See also OMB-87 Circular - Attachment
B
#4 1 - Travel Costs
Comments
-------
REGION 9 OPTIONAL GUIDELINES: Pilot -Checklist for Tribes - Review of Financial/Administrative Systems
Item
EQUIPMENT
Do you maintain written records for all
property/equipment purchased under
grants?
- description
- serial number
- source of property
- location of property
- litle
- purchase date
- cost
- % of federal funds
- location of property
- condition
- disposition data- requirements
INVENTORY
Do you conduct an inventory' of all
property /equipment every two years?
Yes
No
Guidance
40 CFR - Part 31 .32 (c)(d) - Equipment -
Management Requirements
40 CI-R - Part 3 1 .32 (c)(d) - Equipment -
Management Requirements
Comments
REGION 9 OPTIONAL GUIDELINES: Pilot -Checklist for Tribes - Review of Financial/Administrative Systems
Item
PROCUREMENT (Contracts for services
or equipment, purchases of equipment/
supplies)
Do you have written procurement
procedures?
- written code of standards for your
employees who award or administer
contracts/purchases, etc.
- review process to avoid
duplieative/unnecessary purchases
- lease vs. purchase alternatives
- selection procedures for contractors
- system for settling contract issues
- maintain history of procurement
including:
* reason for method of procurement
* selection of contract type
* reason for selection/rejection of
contractor
* basis for contract price, etc.
Do you have written selection procedures
for all procurements:
- full and open competition
Yes
No
Guidance
40 CI-'R Part 3 1 .36 (b) Procurement
standards
-3 1.36{b)(3)-Employee written standards
- 31.36(b)(4)- Review of proposed
procurements
- 3 1 .36(bx8)- Responsible contractors
- 3 1 .36(b)( 1 1 ) -Settlement of contract
issues
- 3 1 ,36(b) (9) - Maintain procurement
records
3 1 .36 (c)( 1 ) - Competition
3 1 .36 fc){3) - Written selection procedures
Comments
EPA Tribal, U.S. Territories and Insular Areas Administrative and Financial Guidance for Assistance Agreements
Last Updated September 2013 page 313 of 519
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REGION 9 OPTIONAL GUIDELINES: Pilot -Checklist tor Tribes - Review of Financial/Administrative Systems
Hem
PROCUREMENT (cont'd)
Do you have written procedures and
dollar thresholds for using/choosing the
following methods of procurement:
1 ) Small purchases
2) Sealed bids
3) Competitive proposals
4) Noneompetitive proposals -sole source
Yes
No
Guidance
3 1 .36 (c)( 1 ) - Competition
31.36 (c)(3) - Written selection procedures
31.36(d)(l) -Small purchase-less than
SI 00,000
3 1 .36(d)( 1 ) - Formal advertising -preferred
for construction
3 1 .36(d)( 1 ) - When sealed bids are not
appropriate; price and other factors can be
considered
3 1 .36(d) (4) - Use only when award is
infeasible under above AND one of
following apply:
- item available from only a single source;
- public emergency will not permit delay
resulting from competitive solicitation
-awarding agency authorizes
noncompetitive proposals
Carter solicitation from number of sources,
competition is inadequate
Comments
EPA Tribal, U.S. Territories and Insular Areas Administrative and Financial Guidance for Assistance Agreements
Last Updated September 2013 page 314 of 519
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Assistance Agreement Award Examples
Cooperative Agreement
WC-83381701-0 Page 1
jp*"1**
(&?) UPRS
Vr ^
^Htfif COO
RECIPIENT TYPE:
Indian Tribe
. ENVIRONMENTAL
DTECTION AGENCY
perative Agreement
RECIPIENT:
Tribe
1234 Rural Route 2
Somewhere, ST 12345
BIN: 12-3456789
PROJECT MANAGER
Jane Doe
Tribe
E-Mail: idoe@tribe.org
Phone: 555-666-9898
FAX 555-666-9899
ASSISTANCE ID NO.
PROGRAM DOCUMENT ID AMENDMENTS
WD- 83381701-
0
TYPE OF ACTION
New
PAYMENT METHOD: ACH
DATE OF AWARD
02/28/2012
MAILING DATE
03/06/2012
ACH# pend
Send Payment Request to:
Las Vegas Finance Center
PAYEE:
Executive Director
EPA PROJECT OFFICER
Myra Price
1200 Pennsylvania Ave, NW, 4501T
Washington, DC 20460
E-Mail: Price.Myra@epa.gov
Phone: 202-566-1225
EPA GRANT SPECIALIST
Philip Schindel
1200 Pennsylvania Ave., NW, 3903R
Washington, DC 20460
E-Mail: Schindel.Philip@epamail.epa.gov
Phone: 202-564-5293
PROJECT TITLE AND DESCRIPTION
Restoration and Enhancement/National Wetlands Mapper
The recipient proposes to assist states with high resolution wetlands restoration data in transferring their data into
National Wetland Inventory maps and facilitate the creation of an additional layer of information supported by the
Wetlands master Geodatabase and online Wetlands Mapper that would show wetlands restoration projects that have
been completed. This project would assist states in adhering to the National Wetlands Mapping Standard, as well as
developing a new layer of information available to the public on wetlands restoration.
BUDGET PERIOD
01/07/2012 - 02/02/2014
PROJECT PERIOD
01/07/2012 - 02/02/2014
TOTAL BUDGET PERIOD COST
$162,919.00
TOTAL PROJECT PERIOD COST
$162,919.00
NOTICE OF AWARD
Based on your application dated 11/08/2011, including all modifications and amendments, the United States acting by
and through the US Environmental Protection Agency (EPA), hereby awards $112,656. EPA agrees to cost-share 70.00%
of all approved budget period costs incurred, up to and not exceeding total federal funding of $112,656. Such award
may be terminated by EPA without further cause if the recipient fails to provide timely affirmation of the award by
signing under the Affirmation of Award section and returning all pages of this agreement to the Grants Management
Office listed below within 21 days after receipt, or any extension of time, as may be granted by EPA. This agreement is
subject to applicable EPA statutory provisions. The applicable regulatory provisions are 40 CFR Chapter 1, Subchapter B,
and all terms and conditions of this agreement and any attachments.
ISSUING OFFICE (GRANTS MANAGEMENT OFFICE)
ORGANIZATION / ADDRESS
Grants and Interagency Agreement Management Division
1200 Pennsylvania Ave., NW
Mail code 3903R
Washington, DC 20460
AWARD APPROVAL OFFICE
ORGANIZATION / ADDRESS
Environmental Protection Agency
Office of Water
1200 Pennsylvania Ave., NW
Washington, DC 20460
THE UNITED STATES OF AMERICA BY THE U.S. ENVIRONMENTAL PROTECTION AGENCY
SIGNATURE OF AWARD OFFICIAL
Digital signature applied by EPA Award
Official
TYPED NAME AND TITLE
Denise A. Polk, chief Grants Management Branch B
DATE
02/28/2012
AFFIRMATION OF AWARD **(please see special note, below)
BY AND ON BEHALF OF THE DESIGNATED RECIPIENT ORGANIZATION
SIGNATURE
a-ice "Doe
TYPED NAME AND TITLE
Jane Doe, Project Manager
DATE
03/17/2012
EPA Tribal, U.S. Territories and Insular Areas Administrative and Financial Guidance for Assistance Agreements
Last Updated September 2013 page 315 of 519
-------
EPA Funding Information
WC-83381701-0 Page 2
FUNDS
EPA Amount This Action
EPA In-Kind Amount
Unexpended Prior Year Balance
Other Federal Funds
Recipient Contribution
State Contribution
Local Contribution
Other Contribution
Allowable Project Cost
FORMER AWARD
THIS ACTION
$112,656
$0
$0
$0
$50,263
$0
$0
$0
$162,919
AMENDED TOTAL
$112,656
$0
$0
$0
$50,263
$0
$0
$0
$162,919
Assistance Program (CFDA)
66.462- National Wetland
Program Development Grants
Statutory Authority
Clean Water Act: Sec. 104(b)(3)
Regulatory Authority
40 CFR Part 30
Fiscal
Site Name
Somewhere
Req No
0887JP8004
FY
08
Approp.
Code
E1C
Budget
Organization
87EJ
PRC
403B07D
Object
Class
4183
Site/
Project
Cost
Organization
-
Obligation/
Deobligation
$112,656
112,656
Budget Summary Page
WC-83381701-0 Page 3
Table A - Object Class Category
(Non-construction)
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
Personnel
Fringe Benefits
Travel
Equipment
Supplies
Contractual
Construction
Other
Total Direct Charges
Indirect Costs: % Base See Terms and Conditions
Total (Share: Recipient 30.00% Federal 70.00 %)
Total Approved Assistance Amount
Program Income
Total EPA Amount Awarded This Action
Total EPA Amount Awarded To Date
Total Approved Allowable
Budget Period Cost
$49,115
$14,243
$4,250
$0
$1,500
$0
$0
$79,976
$149,084
$13,835
$162,919
$112,656
$0
$112,656
$112,656
** SPECIAL NOTE: For NEW awards and amendments after November 1, 2012:
• Recipient signature no longer requested or required.
• Recipient accepts terms of award by:
1. Drawing down funds within 21 days after the EPA award or amendment; or
2. Not filing a notice of disagreement with the award terms and conditions within 21
days after the EPA award mailing date.
EPA Tribal, U.S. Territories and Insular Areas Administrative and Financial Guidance for Assistance Agreements
Last Updated September 2013 page 316 of 519
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WC-83381701-0 Page 4
Administrative Conditions
1. In accordance with Section 2(d) of the Prompt Payment Act (P.L. 97-177), Federal funds may not be used by the
recipient for the payment of interest penalties to contractors when bills are paid late nor may interest penalties be used to
satisfy cost sharing requirements. Obligations to pay such interest penalties will not be obligations of the United States.
2. The recipient understands that none of the funds for this project (including funds contributed by the recipient as cost
sharing) may be used to pay for the travel of Federal employees or for other costs associated with Federal participation in
this project. Except, however if a federal agency is selected through the recipient's procurement process to carry out some
of the work as a contractor to the recipient, funds may be used to allow necessary Federal travel and other costs
associated with Federal participation in this project.
3. UTILIZATION OF SMALL. MINORITY AND WOMEN'S BUSINESS ENTERPRISES
GENERAL COMPLIANCE, 40 CFR, Part 33
The recipient agrees to comply with the requirements of EPA's Program for Utilization of Small, Minority and
Women's Business Enterprises in procurement under assistance agreements, contained in 40 CFR, Part 33.
FAIR SHARE OBJECTIVES, 40 CFR, Part 33, Subpart D
Pursuant to 40 CFR, Section 33.412, Tribal and Insular Area recipients are not required to negotiate a fair share goal
until 3 years from the effective date of the DBE Rule. After that 3-year phase-in period has expired, Tribal and Insular
Area recipients are required to adhere to the full requirements of 40 CFR, Part 33, Subpart D, as applicable.
SIX GOOD FAITH EFFORTS, 40 CFR, Part 33, Subpart C
Pursuant to 40 CFR, Section 33.301, the recipient agrees to make the following good faith efforts whenever procuring
construction, equipment, services and supplies under an EPA financial assistance agreement, and to require that sub-
recipients, loan recipients, and prime contractors also comply. Records documenting compliance with the six good
faith efforts shall be retained.
(a) Require DBEs are made aware of contracting opportunities to the fullest extent practicable through outreach
and recruitment activities. For Indian Tribal, State and Local and Government recipients, this will include placing
DBEs on solicitation lists and soliciting them whenever they are potential sources.
(b) Make information on forthcoming opportunities available to DBEs and arrange time frames for contracts and
establish delivery schedules, where the requirements permit, in a way that encourages and facilitates
participation by DBEs in the competitive process. This includes, whenever possible, posting solicitations for bids
or proposals for a minimum of 30 calendar days before the bid or proposal closing date.
(c) Consider in the contracting process whether firms competing for large contracts could subcontract with DBEs.
For Indian Tribal, State and local Government recipients, this will include dividing total requirements when
economically feasible into smaller tasks or quantities to permit maximum participation by DBEs in the
competitive process.
(d) Encourage contracting with a consortium of DBEs when a contract is too large for one of these firms to
handle individually.
(e) Use the services and assistance of the SBA and the Minority Business Development Agency of the Department
of Commerce.
(f) If the prime contractor awards subcontracts, require the prime contractor to take the steps in paragraphs (a)
through (e) of this section.
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MBE/WBE REPORTING, 40 CFR, Part 33, Sections 33.502 and 33.503
The recipient agrees to complete and submit EPA Form 5700-52A, "MBE/WBE Utilization Under Federal Grants,
Cooperative Agreements and Interagency Agreements" beginning with the Federal fiscal year reporting period
the recipient receives the award, and continuing until the project is completed. Only procurements with
certified MBE/WBEs are counted toward a recipient's MBE/WBE accomplishments. The reports must be
submitted semiannually for the periods ending March 31st and September 30* for:
Recipients of financial assistance agreements that capitalize revolving loan programs (CWSRF, DWSRF,
Brownfields); and
All other recipients not identified as annual reporters (40 CFR Part 30 and 40 CFR Part 35, Subpart A and
Subpart B recipients are annual reporters).
The reports are due within 30 days of the end of the semiannual reporting periods (April 30th and October
30th). Reports should be sent to ENTER APPROPRIATE REGIONAL INFORMATION. Final MBE/WBE reports
must be submitted within 90 days after the project period of the grant ends. Your grant cannot be officially
closed without all MBE/WBE reports.
EPA Form 5700-52A may be obtained from the EPA Office of Small Business Program's Home Page on the
Internet at www.epa.gov/osbp .
CONTRACT ADMINISTRATION PROVISIONS, 40 CFR, Section 33.302
The recipient agrees to comply with the contract administration provisions of 40 CFR, Section 33.302.
BIDDERS LIST, 40 CFR, Section 33.501(b) and (c)
Recipients of a Continuing Environmental Program Grant or other annual reporting grant, agree to create and
maintain a bidders list. Recipients of an EPA financial assistance agreement to capitalize a revolving loan fund
also agree to require entities receiving identified loans to create and maintain a bidders list if the recipient of the
loan is subject to, or chooses to follow, competitive bidding requirements. Please see 40 CFR, Section 33.501 (b)
and (c) for specific requirements and exemptions.
4.ln accordance with EPA regulations (40 C.F.R. 31.40 for State, local, and tribal governments; 40 C.F.R. 30.51 for
other recipients), the recipient agrees to submit quarterly progress reports to the EPA Project Officer within 30
days after each reporting period. These reports shall cover work status, work progress, difficulties encountered,
preliminary data results and a statement of activity anticipated during the subsequent reporting period,
including a description of equipment, techniques, and materials to be used of evaluated. A discussion of
expenditures along with a comparison of the percentage of the project completed to the project schedule and an
explanation of significant discrepancies shall be included in the report. The report shall also include any changes
of key personnel concerned with the project.
In addition, the report shall include brief information on each of the following areas: 1) a comparison of actual
accomplishments with the anticipated outputs/outcomes specified in the assistance agreement work plan; 2)
reasons why anticipated outputs/outcomes were not met; 3) other pertinent information, including, when
appropriate, analysis and explanation of cost overruns or high unit costs. The recipient agrees that it will notify
EPA of problems, delays, or adverse conditions which materially impair the ability to meet the outputs/outcomes
specified in the assistance agreement work plan.
5. By accepting this agreement for the electronic method of payment through the Automated Clearing House
(ACH) network using the EPA-ACH payment system, the recipient agrees to:
(a) Request funds based on the recipient's immediate disbursement requirements by presenting an EPA-ACH
Payment Request to your EPA Servicing Finance Office (see EPA-ACH Payment System Recipients Manual for
additional information.)
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(b) Provide timely reporting of cash disbursements and balances in accordance with the EPA-ACH Payment
System Recipients Manual; and
(c) Impose the same standards of timing and reporting on subrecipients, if any.
Failure on the part of the recipient to comply with the above conditions may cause the recipient to be placed on the
reimbursement payment method.
6. In accordance with EPA regulations (40 C.F.R. 31.40 for State, local and tribal governments; 40C.F.R. 30.51 for other
recipients), the recipient agrees to submit to the EPA Project Officer within 90 days after the expiration or termination of
the approved project period a final report and at least one reproducible copy suitable for printing. The final report shall
document project activities over the entire project period and shall include brief information on each of the following
areas: 1) a comparison of actual accomplishments with the anticipated outputs/outcomes specified in the assistance
agreement work plan; 2) reasons why anticipated outputs/outcomes were not met; and 3) other pertinent information,
including, when appropriate, analysis and explanation of cost overruns or high unit costs. The recipient agrees that it will
notify EPA of problems, delays, or adverse conditions which materially impair the ability to meet the outputs/outcomes
specified in the assistance agreement work plan.
7. Pursuant to 40 CFR 30.52(a)(l) and 30.71(a), EPA recipients shall submit a final Financial Status Report—also called the
SF269—to EPA's Las Vegas Finance Center (LVFC), within ninety (90) days after the expiration of the budget period end
date. Completed SF269s must be faxed to 702-798-2423 or mailed to the following address: US EPA LVFC, P.O. Box 98515,
Las Vegas, NV 89193-8515. The LVFC will make adjustments, as necessary, to obligated funds after reviewing and accepting
a final Financial Status Report. Recipients will be notified and instructed by EPA if they must complete any additional forms
for the closeout of the assistance agreement.
EPA may take enforcement actions in accordance with 40 CFR 30.62 if the recipient does not comply with
this term and condition.
8. HOTEL-MOTEL FIRE SAFETY
Pursuant to 40 CFR 30.18, if applicable, and 15 USC 2225a, the recipient agrees to ensure that all space for conferences,
meetings, conventions, or training seminars funded in whole or in part with federal funds complies with the protection and
control guidelines of the Hotel and Motel Fire Safety Act(PL 101-391, as amended). Recipients may search the Hotel-Motel
National Master List at http://www.usfa.dhs.gov/applications/hotel/to see if a property is in compliance (FEMA ID is
currently not required), or to find other information about the Act.
9. The chief executive officer of this recipient agency shall ensure that no grant funds awarded under this assistance
agreement are used to engage in lobbying of the Federal Government or in litigation against the United States unless
authorized under existing law. The recipient shall abide by its respective OMB Circular (A-21, A-87, or A-122), which
prohibits the use of federal grant funds for litigation against the United States or for lobbying or other political activities.
10. In accordance with Section 18 of the Lobbying Disclosure Act of 1995, PL. No. 105-65,109 Stat. 691, the recipient
affirms that:
(1) it is not a nonprofit organization described in Section 501 (c)(4) of the Internal Revenue Code of 1986; or
(2) it is a nonprofit organization described in Section 501 (c)(4) of the Internal Revenue Code of 1986 but does not and will
not engage in lobbying activities as defined in Section 3 of the Lobbying Disclosure Act of 1995.
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11. Recipients shall fully comply with Subpart C of 2 CFR Part 180 entitled, "Responsibilities of Participants Regarding
Transactions Doing Business With Other Persons," as implemented and supplemented by 2 CFR Part 1532. Recipient is
responsible for ensuring that any lower tier covered transaction, as described in Subpart B of 2 CFR Part 180, entitled
"Covered Transactions," includes a term or condition requiring compliance with Subpart C. Recipient is responsible for
further requiring the inclusion of a similar term or condition in any subsequent lower tier covered transactions. Recipient
acknowledges that failing to disclose the information required under 2 CFR 180.335 may result in the delay or negation of
this assistance agreement, or pursuance of legal remedies, including suspension and debarment.
Recipients may access suspension and debarment information at http://www.sam.gov. This system allows recipients to
perform searches determining whether an entity or individual is excluded from receiving Federal assistance. This term and
condition supersedes EPA Form 5700-49, "Certification Regarding Debarment, Suspension, and Other Responsibility
Matters."
12. The recipient organization of this EPA assistance agreement must make an ongoing, good faith effort to maintain a
drug-free workplace pursuant to the specific requirements set forth in Title 2 CFR Part 1536 Subpart B. Additionally, in
accordance with these regulations, the recipient organization must identify all known workplaces under its federal awards,
and keep this information on file during the performance of the award.
Those recipients who are individuals must comply with the drug-free provisions set forth in Title 2 CFR Part 1536 Subpart
C.
The consequences for violating this condition are detailed under Title 2 CFR Part 1536 Subpart E. Recipients can access the
Code of Federal Regulations (CFR) Title 2 Part 1536 at http://ecfr.gpoaccess.gov/cgi/t/text/text-
idx?c=ecfr&sid=0e898f356b7deblfldfb3ea7eacl4ead&rgn=div5&view=text&node=2:1.1.1.8.17&idno=2
13 a. The recipient agrees to:
(1) Establish all subaward agreements in writing;
(2) Maintain primary responsibility for ensuring successful completion of the EPA-approved project (this
responsibility cannot be delegated or transferred to a subrecipient);
(3) Ensure that any subawards comply with the standards in Section 210(a)-(d) of OMB Circular A-133 and are not
used to acquire commercial goods or services for the recipient;
(4) Ensure that any subawards are awarded to eligible subrecipients and that proposed subaward costs are
necessary, reasonable, and allocable;
(5) Ensure that any subawards to 501(c)(4) organizations do not involve lobbying activities;
(6) Monitor the performance of their recipients and ensure that they comply with all applicable regulations,
statutes, and terms and conditions which flow down in the subaward;
(7) Obtain EPA's consent before making a subaward to a foreign or international organization, or a subaward to be
performed in a foreign country; and
(8) Obtain approval from EPA for any new subaward work that is not outlined in the approved work plan in
accordance with 40 CFR Parts 30.25 and 31.30, as applicable.
b. Any questions about subrecipient eligibility or other issues pertaining to subawards should be addressed to the
recipient's EPA Project Officer. Additional information regarding subawards may be found at
http://www.epa.gov/ogd/guide/subaward-policy-part-2.pdf. Guidance for distinguishing between vendor and
subrecipient relationships and ensuring compliance with Section 210(a)-(d) of OMB Circular A-133 can be found at
http://www.epa.gov/ogd/guide/subawards-appendix-b.pdfand
http://www.whitehouse.gov/omb/financial_fin_single_audit.
c. The recipient is responsible for selecting its subrecipients and, if applicable, for conducting subaward
competitions.
14. Management fees or similar charges in excess of the direct costs and approved indirect rates are not allowable. The
term "management fees or similar charges" refers to expenses, unforeseen liabilities, or for other similar costs which are
not allowable under this assistance agreement. Management fees or similar charge may not be used to improve or expand
the project funded under this agreement, except to the extent authorized as a direct cost of carrying out the scope of
work.
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15. The recipient acknowledges that two employees of this recipient organization must complete the mandatory online
training, "EPA Grant Management Training for Non-Profit Applicants and Recipients." One person must be the project
manager, or equivalent, for this assistance agreement. The training must be completed by both employees prior to the
return of the award document to EPA and the receipt of any grant funds. The course can be accessed at:
http://www.epa.gov/ogd
At the end of the course the recipient must print out, sign and return the certificate of completion with the
affirmation of acceptance to the appropriate grants office. The training certification will expire 3 years from the
last training date. No funds will be released to the recipient by EPA until the required training is completed.
16. EPA's financial obligations to the recipient are limited by the amount of federal funding awarded to date as shown on
line 15 in its EPA approved budget. If the recipient incurs costs in anticipation of receiving additional funds from EPA, it
does so at its own risk.
17. a. If the recipient does not have a previously established indirect cost rate, and is not approved for use of the 10%
flat IDC rate, it agrees to prepare and submit its indirect costs rate proposal in accordance with 2 CFR 225, "Cost Principles
for State, Local, and Indian Tribal Governments".
The recipient must send its proposal to the U.S. Department of the Interior within ninety (90) days from the effective date
of the award of this assistance agreement to:
National Business Center
Indirect Cost Services
U.S. Department of the Interior
2180 Harvard Street, Suite 430
Sacramento, CA 95815-3317
The recipient must copy this EPA office with its proposal via email at OGD lndirectCost(5)EPA.GOV.
b. Recipients may not draw down indirect costs unless they: i) have a current rate agreement; ii) have been approved for
a flat 10% rate; or iii) have submitted, within 90 days of award, an indirect cost rate proposal to the U.S. Department of the
Interior for review and approval and a final rate has been determined.
c. Recipients are responsible for maintaining an approved indirect cost rate. Recipients with differences between their
provisional rates and final rates are not entitled to more than the amount identified in the award for indirect costs without
EPA approval.
18. Trafficking in persons.
a. Provisions applicable to a recipient that is a private entity.
1. You as the recipient, your employees, subrecipients under this award, and subrecipients' employees may
not—
i. Engage in severe forms of trafficking in persons during the period of time that the award is in effect;
ii. Procure a commercial sex act during the period of time that the award is in effect; or
iii. Use forced labor in the performance of the award or subawards under the award.
2. We as the Federal awarding agency may unilaterally terminate this award, without penalty, if you or a
subrecipient that is a private entity —
i. Is determined to have violated a prohibition in paragraph a.l of this award term; or
ii. Has an employee who is determined by the agency official authorized to terminate the award to
have violated a prohibition in paragraph a.l of this award term through conduct that is either—
A. Associated with performance under this award; or
B. Imputed to you or the subrecipient using the standards and due process for imputing the
conduct of an individual to an organization that are provided in 2 CFR part 180, "OMB
Guidelines to Agencies on
Governmentwide Debarment and Suspension (Nonprocurement)," as implemented by our
Agency at 2 CFR 1532.
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b. Provision applicable to a recipient other than a private entity. We as the Federal awarding agency may unilaterally
terminate this award, without penalty, if a subrecipient that is a private entity—
1. Is determined to have violated an applicable prohibition in paragraph a.l of this award term; or
2. Has an employee who is determined by the agency official authorized to terminate the award to have violated
an applicable prohibition in paragraph a.l of this award term through conduct that is either—
i. Associated with performance under this award; or
ii. Imputed to the subrecipient using the standards and due process for imputing the conduct of an
individual to an organization that are provided in 2 CFR part 180, "OMB Guidelines to Agencies on
Governmentwide Debarment and Suspension (Nonprocurement)," as implemented by our agency at 2
CFR 1532
c. Provisions applicable to any recipient.
1. You must inform us immediately of any information you receive from any source alleging a violation of a
prohibition in paragraph a.l of this award term.
2. Our right to terminate unilaterally that is described in paragraph a.2 or b of this section:
i. Implements section 106(g) of the Trafficking Victims Protection Act of 2000 (TVPA), as amended (22
U.S.C. 7104(g)), and
ii. Is in addition to all other remedies for noncompliance that are available to us under this award.
3. You must include the requirements of paragraph a.l of this award term in any subaward you make to a private
entity.
d. Definitions. For purposes of this award term:
1. "Employee" means either:
i. An individual employed by you or a subrecipient who is engaged in the performance of the project or
program under
this award; or
ii. Another person engaged in the performance of the project or program under this award and not
compensated by you including, but not limited to, a volunteer or individual whose services are
contributed by a third party as an in-kind contribution toward cost sharing or matching requirements.
2. "Forced labor" means labor obtained by any of the following methods: the recruitment, harboring,
transportation, provision, or obtaining of a person for labor or services, through the use of force, fraud, or
coercion for the purpose of subjection to involuntary servitude, peonage, debt bondage, or slavery.
3. "Private entity":
i. Means any entity other than a State, local government, Indian tribe, or foreign public entity, as those
terms are defined in 2 CFR 175.25.
ii. Includes:
A. A nonprofit organization, including any nonprofit institution of higher education, hospital,
or tribal organization other than one included in the definition of Indian tribe at 2 CFR
175.25(b).
B. A for-profit organization.
4. "Severe forms of trafficking in persons," "commercial sex act," and "coercion" have the meanings given at
section 103 of the TVPA, as amended (22 U.S.C. 7102).
19.
I. Reporting Subawards and Executive Compensation.
a. Reporting of first-tier subawards.
1. Applicability. Unless you are exempt as provided in paragraph d. of this award term,
you must report each action that obligates $25,000 or more in Federal funds that does not include Recovery
funds (as defined in section 1512(a)(2) of the American Recovery and Reinvestment Act of 2009, Pub. L.
111-5) for a subaward to an entity (see definitions in paragraph e of this award term).
2. Where and when to report.
i. You must report each obligating action described in paragraph a.l. of this
award term to www.fsrs.gov.
ii. For subaward information, report no later than the end of the month following
the month in which the obligation was made. (For example, if the obligation was made on November 7,
2010, the obligation must be reported by no later than December 31, 2010.)
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3. What to report. You must report the information about each obligating action that
the submission instructions posted at www.fsrs.gov specify.
b. Reporting Total Compensation of Recipient Executives.
1. Applicability and what to report. You must report total compensation for each of
your five most highly compensated executives for the preceding completed fiscal year, if -
i. the total Federal funding authorized to date under this award is $25,000 or
more;
ii. in the preceding fiscal year, you received—
(A) 80 percent or more of your annual gross revenues from Federal
procurement contracts (and subcontracts) and Federal financial assistance subject to the Transparency Act,
as defined at 2 CFR 170.320 (and subawards); and
(B) $25,000,000 or more in annual gross revenues from Federal procurement
contracts (and subcontracts) and Federal financial assistance subject to the Transparency Act, as defined at
2 CFR 170.320 (and subawards); and
iii. The public does not have access to information about the compensation of the
executives through periodic reports filed under section 13(a) or 15(d) of the Securities Exchange Act of 1934
(15 U.S.C. 78m(a), 78o(d)) or section 6104 of the Internal Revenue Code of 1986. (To determine if the public
has access to the compensation information, see the U.S. Security and Exchange Commission total
compensation filings at http://www.sec.gov/answers/execomp.htm.)
2. Where and when to report. You must report executive total
compensation described in paragraph b.l. of this award term:
i. As part of your Central Contractor Registration/System for Award
Management profile, available at www.sam.gov.
ii. By the end of the month following the month in which this award is
made, and annually thereafter.
c. Reporting of Total Compensation of Subrecipient Executives.
1. Applicability and what to report. Unless you are exempt as provided in paragraph
d. of this award term, for each first-tier subrecipient under this award, you shall report the names and total
compensation of each of the subrecipient's five most highly compensated executives for the subrecipient's
preceding completed fiscal year, if -
i. in the subrecipient's preceding fiscal year, the subrecipient received—
(A) 80 percent or more of its annual gross revenues from Federal procurement
contracts (and subcontracts) and Federal financial assistance subject to the Transparency Act, as defined at
2 CFR 170.320 (and subawards); and
(B) $25,000,000 or more in annual gross revenues from Federal procurement
contracts (and subcontracts), and Federal financial assistance subject to the Transparency Act (and
subawards); and
ii. The public does not have access to information about the compensation of the
executives through periodic reports filed under section 13(a) or 15(d) of the Securities Exchange Act of 1934
(15 U.S.C. 78m(a), 78o(d)) or section 6104 of the Internal Revenue Code of 1986. (To determine if the public
has access to the compensation information, see the U.S. Security and Exchange Commission total
compensation filings at http://www.sec.gov/answers/execomp.htm.)
2. Where and when to report. You must report subrecipient executive total
compensation described in paragraph c.l. of this award term:
i. To the recipient.
ii. By the end of the month following the month during which you make
the subaward. For example, if a subaward is obligated on any date during the month of October of a given
year (i.e., between October 1 and 31), you must report any required compensation information of the
subrecipient by November 30 of that year.
d. Exemptions
If, in the previous tax year, you had gross income, from all sources, under $300,000,
you are exempt from the requirements to report:
i. subawards,
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WC-83381701-0 Page 11
and
ii. the total compensation of the five most highly compensated executives of any
subrecipient.
e. Definitions. For purposes of this award term:
1. Entity means all of the following, as defined in 2 CFR part 25:
i. A Governmental organization, which is a State, local government, or Indian
tribe;
ii. A foreign public entity;
iii.A domestic or foreign nonprofit organization;
iv.A domestic or foreign for-profit organization;
v. A Federal agency, but only as a subrecipient under an award or subaward to a
non-Federal entity.
2. Executive means officers, managing partners, or any other employees in management
positions.
3. Subaward:
i. This term means a legal instrument to provide support for the performance of
any portion of the substantive project or program for which you received this award and that you as the
recipient award to an eligible subrecipient.
ii. The term does not include your procurement of property and services needed
to carry out the project or program (for further explanation, see Sec. —.210 of the attachment to OMB
Circular A-133, "Audits of States, Local Governments, and Non-Profit Organizations").
iii.A subaward may be provided through any legal agreement, including an
agreement that you or a subrecipient considers a contract.
4. Subrecipient means an entity that:
i. Receives a subaward from you (the recipient) under this award; and
ii. Is accountable to you for the use of the Federal funds provided by the
subaward.
5. Total compensation means the cash and noncash dollar value earned by the executive
during the recipient's or subrecipient's preceding fiscal year and includes the following (for more
information see 17 CFR 229.402(c)(2)):
/. Salary and bonus.
ii. Awards of stock, stock options, and stock appreciation rights. Use the dollar amount
recognized for financial statement reporting purposes with respect to the fiscal year in
accordance with the Statement of Financial Accounting Standards No. 123 (Revised
2004) (FAS 123R), Shared Based Payments.
iii. Earnings for services under non-equity incentive plans. This does not include group
life, health, hospitalization or medical reimbursement plans that do not discriminate in
favor of executives, and are available generally to all salaried employees.
iv. Change in pension value. This is the change in present value of defined benefit and
actuarial pension plans.
v. Above-market earnings on deferred compensation which is not tax-qualified.
vi. Other compensation, if the aggregate value of all such other compensation (e.g.
severance, termination payments, value of life insurance paid on behalf of the
employee, perquisites or property) for the executive exceeds $10,000.
20. Central Contractor Registration/System for Award Management and Universal Identifier Requirements.
A. Requirement for Central Contractor Registration (CCR)/System for Award Management. Unless you are
exempted from this requirement under 2 CFR 25.110, you as the recipient must maintain the currency of
your information in SAM until you submit the final financial report required under this award or receive the
final payment, whichever is later. This requires that you review and update the information at least
annually after the initial registration, and more frequently if required by changes in your information or
another award term.
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WC-83381701-0 Page 12
B. Requirement for Data Universal Numbering System (DUNS) numbers. If you are authorized to
make subawards under this award, you:
1. Must notify potential subrecipients that no entity (see definition in paragraph C of this award
term) may receive a subaward from you unless the entity has provided its DUNS number to you.
2. May not make a subaward to an entity unless the entity has provided its DUNS number to
you.
C. Definitions. For purposes of this award term:
1. Central Contractor Registration (CCR)/System for Award Management (SAM) means the
Federal repository into which an entity must provide information required for the conduct of business as a
recipient. Additional information about registration procedures may be found at the System for Award
Management (SAM) Internet site http://www.sam.gov.
2. Data Universal Numbering System (DUNS) number means the nine-digit number established
and assigned by Dun and Bradstreet, Inc. (D&B) to uniquely identify business entities. A DUNS number may
be obtained from D&B by telephone (currently 866-705-5711) or the Internet (currently at
http://fedgov.dnb.com/webform).
3. Entity, as it is used in this award term, means all of the following, as defined at 2 CFR part 25,
subpart C:
a. A Governmental organization, which is a State, local government, or Indian tribe;
b. A foreign public entity;
c. A domestic or foreign nonprofit organization;
d. A domestic or foreign for-profit organization; and
e. A Federal agency, but only as a subrecipient under an award or subaward to a non-
Federal entity.
4. Subaward:
a. This term means a legal instrument to provide support for the performance of any
portion of the substantive project or program for which you received this award and that you as the
recipient award to an eligible subrecipient.
b. The term does not include your procurement of property and services needed to
carry out the project or program (for further explanation, see Sec. -.210 of the attachment to OMB Circular
A-133, "Audits of States, Local Governments, and Non-Profit Organizations").
c. A subaward may be provided through any legal agreement, including an agreement
that you consider a contract.
5. Subrecipient means an entity that:
a. Receives a subaward from you under this award; and
b. Is accountable to you for the use of the Federal funds provided by the subaward.
21. This award is subject to the provisions contained in the Department of Interior, Environment, and Related Agencies
Appropriations Act, 2012, HR 2055, Division E, Sections 433 and 434 (sections 433 and 434) regarding unpaid federal tax
liabilities and federal felony convictions. Accordingly, by accepting this award the recipient acknowledges that it: (1) is not
subject to any unpaid Federal tax liability that has been assessed, for which all judicial and administrative remedies have
been exhausted or have lapsed, and that is not being paid in a timely manner pursuant to an agreement with the authority
responsible for collecting the tax liability, and (2) has not been convicted (or had an officer or agent acting on its behalf
convicted) of a felony criminal conviction under any Federal law within 24 months preceding the award, unless EPA has
considered suspension or debarment of the corporation, or such officer or agent, based on these tax liabilities or
convictions and determined that such action is not necessary to protect the Government's interests. If the recipient fails
to comply with these provisions, EPA will annul this agreement and may recover any funds the recipient has expended in
violation of sections 433 and 434.
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Grant Agreement Non-construction
US-12345678-O Page 1
******
(ft)
%PR,X
U.S.
ENVIRONMENTAL
PROTECTION AGENCY
Grant Agreement
RECIPIENT TYPE:
Indian Tribe
RECIPIENT:
Tribe
1234 Rural Route 2
Somewhere, ST 12345
BIN: 12-3456789
PROJECT MANAGER
Jane Doe
Tribe
E-Mail: jdoe@tribe.org
Phone: 555-666-9898, FAX 555-666-9899
ASSISTANCE ID NO.
PROGRAM DOCUMENT ID AMENDMENT**
US- 12345678- 0
TYPE OF ACTION
New
PAYMENT METHOD:
DATE OF AWARD
9/11/2011
MAILING DATE
9/18/2011
ACH#
Send Payment Request to:
EPA Finance Unit, OMP-123
FAX #555-666-7878
PAYEE:
EPA Regional Office 25
9876 Urban Drive
Somewhere, ST 98765
EPA PROJECT OFFICER EPA GRANT SPECIALIST
Sandra Vine Dean Mulberry
222 North 89th St. 333 South 67th St.
Somewhere, ST 98765 Somewhere, ST 98765
E-Mail: svine@epa.gov E-Mail: dmulberrv@epa.gov
Phone: 555-666-7878 ext. 123 Phone: 555-666-4545 ext. 678
PROJECT TITLE AND DESCRIPTION
Indian General Assistance Program
Build Non-existent Tribe's environmental capacity; improve ability to communicate about environmental issues; represent Tribes on
statewide environmental panels; aid state and federal agencies in their relationships with Tribes; increase communication between Tribes
and agencies, and assist Tribes to better protect their environments.
BUDGET PERIOD
10/01/2011 - 09/30/2012
PROJECT PERIOD
10/01/2011 - 09/30/2012
TOTAL BUDGET PERIOD COST
$320,000.00
TOTAL PROJECT PERIOD COST
$320,000.00
NOTE: The agreement must be completed in duplicate and the original returned to the apropriate Grants Management Office listed
below within three (3) calendar weeks after receipt or within any extension of time as may be granted by EPA. Receipt of a
written refusal orfailureto return the properly executed document within the prescribed time may result in the withdrawal of
the offer by the agency. Any change to the agreement by the recipient subsequent to the document being signed by the EPA
Award Official, which the Award Official determines to materially alter the agreement, shall void the agreement.
OFFER AND ACCEPTANCE
The United States, acting by and through the U.S. Environmental Protection Agency (EPA), hereby offers
Assistance/Amendment to the Tribe for 100% of all approved costs incurred up to and not exceeding $320,000 for
the support of approved budget period effort described in application (including all application modifications) cited in the
Project Title and Description above, signed 04/30/2011 included herein by reference.
ISSUING OFFICE (GRANTS MANAGEMENT OFFICE)
ORGANIZATION /ADDRESS
EPA Region 25
Mail Code, OMP-123
900 Elm Avenue
Somewhere, ST 98765
AWARD APPROVAL OFFICE
ORGANIZATION / ADDRESS
EPA Region 25
Office of the Executive
900 Elm Avenue
Somewhere, ST 98765
THE UNITED STATES OF AMERICA BY THE U.S. ENVIRONMENTAL PROTECTION AGENCY
SIGNATURE OF AWARD OFFICIAL
fa^etetp ^CAH
TYPED NAME AND TITLE
Johnny Bean, Regional Administrator
DATE
09/11/2011
This agreement is subject to applicable U.S. Environmental Protection Agency statutory provisions and assistance regulations. In accepting
this award or amendment and any payments made pursuant thereto, (1) the undersigned represents that s/he is duly authorized to act
on behalf of the recipient organization, and (2) the recipient agress (a) that the award is subject to the applicable provisions of 40CFR
chapter 1, Subchapter B and the provisions of this agreement (and all attachements), and (b) that acceptance of any payments constitutes
an agreement by the payee that the amounts, if any found by EPA to have been overpaid will be refunded or credited in full to EPA.
BY AND ON BEHALF OF THE DESIGNATED RECIPIENT ORGANIZATION
SIGNATURE
TYPED NAME AND TITLE
Jane Doe, Project Manager
DATE
10/02/2011
EPA Tribal, U.S. Territories and Insular Areas Administrative and Financial Guidance for Assistance Agreements
Last Updated September 2013 page 326 of 519
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EPA Funding Information
US-12345678-0 Page 2
FUNDS
EPA Amount This Action
EPA In-Kind Amount
Unexpended Prior Year Balance
Other Federal Funds
Recipient Contribution
State Contribution
Local Contribution
Other Contribution
Allowable Project Cost
FORMER AWARD
THIS ACTION
AMENDED TOTAL
$320,000
$0
$0
$0
$0
$0
$0
$0
$320,000
Assistance Program (CFDA)
66.926 - Indian Environmental
General Assistance Program
Statutory Authority
Indian Environmental General
Assistance Program Act 1992
Regu latory Authority
40 CFR Parts 31 and 35 Subpart B
Fiscal
Site Name
Somewhere
DCN
Y1G040
FY
2012
Appropriation
Code
El
Budget
Organization
10YT
PRC
407XXB
15
Object
Class
4183
Site/
Project
-
Cost
Organization
-
Obligation /
Deobligation
$320,000
$320,000
Budget Summary
Table A - Object Class Category
(Non-construction)
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
Personnel
Fringe Benefits
Travel
Equipment
Supplies
Contractual
Construction
Other
Total Direct Charges
Indirect Costs: % Base
Total (Share: Recipient 0.00% Federal 100.00 %)
Total Approved Assistance Amount
Program Income
Total Approved Allowable
Budget Period Cost
$173.225
$39,845
$13,570
$0
$5,647
$11,500
$0
$76,213
$320,000
$0
$320,000
$320,000
$0
Previous Edition Usable
Authorized for Local Reproduction
Standard Form 424C (Rev. 7-97)
Prescribed by OMB Circular A-102
EPA Tribal, U.S. Territories and Insular Areas Administrative and Financial Guidance for Assistance Agreements
Last September 2013 327 of 519
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Administrative Conditions us 12345578 opage 3
1. Payment Information
a. Electronic Funds Transfer (EFT) systems:There are two EFT payment systems available to
recipients, whereby payments are sent directly to the recipient's financial institution within 3-5
business days. Recipients may use either EPA's EFT-IFMS system or ASAP, as follows:
Under EPA's EFT-IFMS your payment request must be made on the EPA Region 25 EFT-
Payment Request Form.
Under the Automated Standard Application for Payment (ASAP) the recipient follows
Department of Treasury ASAP instructions.
To enroll in either system (if not currently enrolled), or if you have questions, please call
Norma Buttons at 555-666-3434.
b. Treasury check by mail: Recipients not receiving electronic funds transfer payments will be
paid by Treasury check. Recipients must submit a "Request for Advance or Reimbursement
"Standard Form 270, via FAX to EPA Region 25 Finance Unit at FAX 555-666-7878 OR mail to EPA
Region 25 Finance Unit, OMP-123, Somewhere, ST 98765. Recipients will normally receive
payment within 30 days of EPA's receipt of a correct SF 270.
Under any of the above payment mechanisms, recipients may request/draw down advances for
their immediate cash needs, provided the recipient meets the requirements of 40 CFR 30.22(b) or 40
CFR 31.21(c) as applicable. Additionally, recipients must liquidate all obligations incurred within 90
calendar days of the project period end date. Therefore, recipients must submit the final request for
payment, and refund to EPA any balance of unobligated cash advanced within 90 calendar days after
the end of the project period.
2. Cost Principles/Indirect Costs Not Included (All Organizations)
The cost principles of OMB Circular A-21 (educational institutions), A-87 (state, local, or Indian Tribal
governments), or A-122 (non-profit organizations) are applicable, as appropriate, to this award.
Since there are no indirect costs included in the assistance budget, they are not allowable under this
Assistance Agreement.
3. Quarterly Performance Reports
The recipient shall submit quarterly performance reports, which are due 30 calendar days after the
end of each federal fiscal quarter. (Federal fiscal quarters end the last day of March, June,
September, and December.) Reports shall be submitted to the EPA Project Officer and may be
provided electronically. The reports shall generally contain brief information on each of the
following:
(a) A comparison of actual accomplishments with the goals and objectives established for the
reporting period
(b) Reasons for slippages or why established goals were not met, if appropriate
(c) Other pertinent information on the project
In addition to the quarterly performance reports, the recipient shall immediately notify the EPA
Project Officer of developments that have a significant impact on the award-supported activities.
Also, notification shall be given in the case of problems, delays, or adverse conditions which
materially impair the ability to meet the objectives of the award. This notification shall include a
statement of the action taken or contemplated and any assistance needed to resolve the situation.
EPA Tribal, U.S. Territories and Insular Areas Administrative and Financial Guidance for Assistance Agreements
Last September 2013 328 of 519
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Administrative Conditions us-12345578-0 page 4
4. Final Performance Report
In addition to the periodic performance reports, the recipient shall submit a final performance
report, which is due 90 calendar days after the expiration or termination of the award. The report
shall be submitted to the EPA Project Officer and may be provided electronically. The report shall
generally contain the same information as in the periodic reports, but should cover the entire
project period. If appropriate, the EPA Project Officer may waive the requirement for a final
performance report after completion of the project.
5. Financial Status Reports (FSRs) - Yearly
The Financial Status Report (FSR) Standard Form 269 for this award shall be submitted to the Grants
Administration Unit, OMP-123 within 90 days after the end of the budget period. If the budget
period is longer than one year, or if the agreement is revised to extend the budget period beyond
one year, the recipient must submit an annual FSR within 90 days after the end of each anniversary
of the agreement.
6. Audit Requirements
The recipient agrees to comply with the requirements of OMB Circular A-133 "Audits of States, Local
Governments, and Non-Profit Organizations."
7. Hotel and Motel Fire Safety Act
Effective October 1, 1994 the recipient agrees to ensure that all conference, meeting, convention, or
training space funded in whole or in part with federal funds complies with the Hotel and Motel Fire
Safety Act of 1990.
8. Recycled Paper
Pursuant to EPA Order 1000.25 dated January 24, 1990, the recipient agrees to use recycled paper
for all reports which are prepared as a part of this agreement and delivered to the Agency. This
requirement does not apply to Standard Forms. These forms are printed on recycled paper as
available through the General Services Administration.
9. Lobbying and Litigation
The recipient agrees to provide EPA Form 5700-53 "Lobbying and Litigation Certificate" as mandated
by EPA's annual Appropriations act. The Chief Executive Officer of any entity receiving assistance
funds must certify that none of these funds have been used to engage in the lobbying of the federal
government or in litigation against the United States unless authorized under existing law. The
certification must be submitted to your EPA grants specialist within 90 days after the end of the
project period.
10. Small and Disadvantaged Business Utilization Requirements (Indian Tribes)
The recipient agrees to follow the six affirmative steps stated in 40 CFR 31.36(e), 35.3145(d), or
35.6580, as appropriate, and to require its prime contractor to follow these affirmative steps if it
awards subcontracts. The recipient also agrees to retain records documenting compliance.
EPA Tribal, U.S. Territories and Insular Areas Administrative and Financial Guidance for Assistance Agreements
Last September 2013 329 of 519
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Administrative Conditions us-12345578-0 page 5
The recipient agrees to submit an EPA For 5700-52A "MBE/WBE Utilization Under Federal Grants,
Cooperative Agreements and Interagency Agreements" beginning with the federal fiscal year
quarter the recipient receives the award and continuing until the project is completed. These
reports must be submitted within 30 days of the end of the federal fiscal quarter (January 30, April
30, July 30, and October 30). For assistance awards for continuing environmental programs, the
recipient agrees to submit an EPA Form 5700-52A by October 30 each year. All reports should be
submitted to the Office for Civil Rights and Environmental Justice, CEJ-987, 4343 Main St.,
Somewhere, ST 98765.
In accordance with Section 129 of Public Law 100-590, the Small Business Administration and
Reauthorization and Amendment Act of 1988, the recipient agrees to utilize and to encourage any
prime contractors under the assistance agreement to utilize small businesses located in rural areas
to the maximum extent possible through the use of the six affirmative steps.
11. Consultant Services
EPA participation in the salary rate (excluding overhead) paid to individual consultants is limited to
the maximum daily rate for a Level IV of the Executive Schedule, which is currently $483.20.
Contracts with firms for services which are awarded using the procurement requirements in this
part are not affected by this limitation. The recipient may refer to 40 CFR 30.27 or 40 CFR 31.36(j), as
applicable, for additional information.
12. Prior Approval
The recipient's work plan and/or budget identified items that require prior approval of the awarding
agency, in accordance with the Cost Principles. This award provides approval for proposal
preparation costs.
Programmatic Conditions
1. Consortium Requirements
The recipient shall comply with 40 CFR 35.504, which discusses the eligibility of Intertribal Consortia
to apply for and receive assistance agreements under 40 CFR 35 Subpart B.
In addition, the recipient must ensure, through adequate accounting controls that only Consortium
members that meet the eligibility requirements to receive a grant under the Indian Environmental
General Assistance Program Act will: (1) benefit directly from the grant project and (2) receive and
manage grant funds.
END OF ASSISTANCE AGREEMENT US-12345678-0
EPA Tribal, U.S. Territories and Insular Areas Administrative and Financial Guidance for Assistance Agreements
Last September 2013 330 of 519
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Grant Agreement with Construction
US-12345678-O Page 1
U.S.
ENVIRONMENTAL
PROTECTION AGENCY
Grant Agreement
ASSISTANCE ID NO.
PROGRAM
DOCUMENT ID
12345678-
AMENDMENTtt
TYPE OF ACTION
New
PAYMENT METHOD: ACH
DATE OF AWARD
9/11/2011
MAILING DATE
9/18/2011
ACH# pend
RECIPIENT TYPE:
Indian Tribe
Send Payment Request to:
Los Vegas Finance Center
RECIPIENT:
PAYEE:
Tribe
1234 Rural Route 2
Somewhere, ST12345
EIN: 12-3456789
President
PROJECT MANAGER
EPA PROJECT OFFICER
EPA GRANT SPECIALIST
Jane Doe
Tribe
E-Mail: jdoe@tribe.orQ
Phone: 555-666-9898; FAX: 555-666-9899
Sandra Vine
222 North 89th St.
Somewhere, ST 98765
E-Mail: svine@iepa.gov
Phone: 555-666-7878 ext. 123
Dean Mulberry
333 South 67th St.
Somewhere, ST 98765
E-Mail: dmulberry@epa. gov
Phone: 555-666-4545 ext. 678
PROJECT TITLE AND DESCRIPTION
Indian General Assistance Program
Build Tribe's environmental capacity; improve ability to communicate about environmental issues; represent Tribes on
statewide environmental panels; aid state and federal agencies in their relationships with Tribes; increase communication
between Tribes and agencies, and assist Tribes to better protect their environments.
BUDGET PERIOD
10/01/2011 - 09/30/2013
PROJECT PERIOD
10/01/2011 - 09/30/2013
TOTAL BUDGET PERIOD COST
$12,220,429
TOTAL PROJECT PERIOD COST
$12,220,429
NOTICE OF AWARD
Based on your application dated 07/08/2011, including all modifications and amendments, the United States, acting
by and through the U.S. Environmental Protection Agency (EPA), hereby awards $2,000,000. EPA agrees to cost-share
55.00% of all approved budget period costs incurred, up to and not exceeding total federal funding of $2,000,000.
Such award may be terminated by EPA without further cause if the recipient fails to provide timely affirmation of the
award by signing under the Affirmation of Award section and returning all pages of this agreement to the Grants
Management Office listed below within 21 days after receipt, or any extension of time, as may be granted by EPA. This
agreement is subject to applicable EPAstatutory provisions. The applicable regulatory provisions are 40 CFR Chapter 1,
Subchapter B, and all terms and conditions of this agreement and any attachments.
ISSUING OFFICE (GRANTS MANAGEMENT OFFICE)
AWARD APPROVAL OFFICE
ORGANIZATION / ADDRESS
ORGANIZATION / ADDRESS
EPA Region 25
Mail Code, OMP-123
900 Elm Avenue
Somewhere, ST 98765
EPA Region 25
Office of the Executive
900 Elm Avenue
Somewhere, ST 98765
THE UNITED STATES OF AMERICA BY THE U.S. ENVIRONMENTAL PROTECTION AGENCY
SIGNATURE OF AWARD OFFICIAL
TYPED NAME AND TITLE
Johnny Bean, Regional Administrator
DATE
09/11/2011
AFFIRMATION OF AWARD
BY AND ON BEHALF OF THE DESIGNATED RECIPIENT ORGANIZATION
SIGNATURE
meb State
TYPED NAME AND TITLE
James Stone, President, Tribal Leader's Council
DATE
10/02/2011
EPA Tribal, U.S. Territories and Insular Areas Administrative and Financial Guidance for Assistance Agreements
Last Updated September 2013 page 331 of 519
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EPA Funding Information
US-12345678-0 Page 2
FUNDS
EPA Amount This Action
EPA In-Kind Amount
Unexpended Prior Year Balance
Other Federal Funds
Recipient Contribution
State Contribution
Local Contribution
Other Contribution
Allowable Project Cost
FORMER AWARD
THIS ACTION
AMENDED TOTAL
$2,000,000
$0
$0
$0
$220,429
$2,000,000
$0
$0
$12,220,429
Assistance Program (CFDA)
66.418 - Construction Grants for Waste
Water Treatment Works
Statutory Authority
Clean Water Act: Sec. 518(c)
Regulatory Authority
40 CFR Parts 31 and 35 Subpart 1
Fiscal
Site Name
Somewhere Nation
DCN
FY
2012
Appropriation
Code
GH1
Budget
Organization
104
PRC
GH5
Object
Class
4111
Site/
Project
Cost
organization
-
Obligation /
Deobligation
$2,000,000
$2,000,000
BUDGET INFORMATION - Construction Programs
Certain federal assistance programs require additional computations to arrive at the federal share of
project costs eligible for participation. If such is the case, you will be notified.
Program Element Classification (Construction)
1. Administrative and legal expenses
2. Land Structures, right of way, appraisals,
etc.
3. Relocation expenses and payments
4. Architectural Engineering Basic Fees
5. Other Architectural Engineering Fees
6. Project inspection fees:
a. Force Account - KCWTD (includes 40% for
benefits)
7. Site work
8. Demolition and Removal
9. Construction:
a. Wastewater Treatment Plant Contract
b. Outfall Contract
10. Equipment
11. Miscellaneous
12. Subtotal (Lines 1 thru 11)
13. Contingencies
14. Subtotal (Lines 12 thru 13)
15. Project/Program Income
16. TOTAL PROJECT COSTS (Lines 15 minus 14)
a. Total Costs
$0
$180,978
$0
$1,783,913
$465,194
$1,703,247
$0
$0
$7,794,651
$222,446
$20,000
$50,000
$12,220,429
$611,021
$12,831.450
$0
$12,831.450
b. Costs Not Allowable
for Participation
$0
$180,978
$0
$1,783,913
$465,194
$1,703,247
$0
$0
$0
$222,446
$20,000
$50,000
$4,425,778
$221,289
$4,647,067
$0
$4,647,067
OMB Approval No. 0348-0041
Total Allowable Costs
(Columns a minus b)
$0
$0
$0
$0
$0
$0
$0
$0
$7,794,651
$0
$0
$0
$7,794,651
$389,733
$8,184,384
$0
$8,184,384
FEDERAL FUNDING
Federal assistance requested, calculate as follows: $4,501,411
(Consult Federal agency for Federal percentage share.) Enter eligible costs from line 16 Multiply X 55%
Enterthe resulting Federal share.
Previous Edition Usable
Authorized for Local Reproduction
Standard Form 424C (Rev. 7-97)
Prescribed by OMB Circular A-102
-------
Administrative Conditions us 12345578 opage 3
1. Payment Information
a. Electronic Funds Transfer (EFT) systems: There are two EFT payment systems available to
recipients, whereby payments are sent directly to the recipient's financial institution within 3-5 business days.
Recipients may use either EPA's EFT-IFMS system or ASAP, as follows:
Under EPA's EFT-IFMS your payment request must be made on the EPA Region 25 EFT-Payment Request Form.
Under the Automated Standard Application for Payment (ASAP) the recipient follows Department of Treasury
ASAP instructions.
To enroll in either system (if not currently enrolled), or if you have questions, please call Norma Buttons at
555-666-3434.
b. Treasury check by mail: Recipients not receiving electronic funds transfer payments will be paid by
Treasury check. Recipients must submit a "Request for Advance or Reimbursement "Standard Form 270, via
FAX to EPA Region 25 Finance Unit at FAX 555-666-7878 OR mail to EPA Region 25 Finance Unit, OMP-123,
Somewhere, ST 98765. Recipients will normally receive payment within 30 days of EPA's receipt of a correct SF
270.
Under any of the above payment mechanisms, recipients may request/draw down advances for their
immediate cash needs, provided the recipient meets the requirements of 40 CFR 30.22(b) or 40 CFR 31.21(c)
as applicable. Additionally, recipients must liquidate all obligations incurred within 90 calendar days of the
project period end date. Therefore, recipients must submit the final request for payment, and refund to EPA
any balance of unobligated cash advanced within 90 calendar days after the end of the project period.
2. Cost Principles/Indirect Costs Not Included (All Organizations)
The cost principles of OMB Circular A-21 (educational institutions), A-87 (state, local, or Indian Tribal
governments), or A-122 (non-profit organizations) are applicable, as appropriate, to this award. Since there
are no indirect costs included in the assistance budget, they are not allowable under this Assistance
Agreement.
3. Financial Status Reports (FSRs) - Yearly
The Financial Status Report (FSR) Standard Form 269 for this award shall be submitted to the Grants
Administration Unit, OMP-123 within 90 days after the end of the budget period. If the budget period is longer
than one year, or if the agreement is revised to extend the budget period beyond one year, the recipient must
submit an annual FSR within 90 days after the end of each anniversary of the agreement.
4. Audit Requirements
The recipient agrees to comply with the requirements of OMB Circular A-133 "Audits of States, Local
Governments, and Non-Profit Organizations."
5. Hotel and Motel Fire Safety Act
Effective October 1,1994 the recipient agrees to ensure that all conference, meeting, convention, or training
space funded in whole or in part with federal funds complies with the Hotel and Motel Fire Safety Act of 1990.
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Administrative Conditions us 12345578 opage 4
6. Recycled Paper
ALL APPLICANTS:
Pursuant to EPA Order 1000.25 dated January 24,1990, the recipient agrees to use recycled paper for all
reports which are prepared as a part of this agreement and delivered to the Agency. This requirement does
not apply to Standard Forms. These forms are printed on recycled paper as available through the General
Services Administration.
STATE AGENCIES AND POLITICAL SUBDIVISIONS:
Any state agency or agency of a political subdivision of a state which is using appropriated federal funds shall
comply with the requirements set forth in Section 5002 of the Resource conservation and Recovery Act (RCRA)
(42 U.S.C. 6962). Regulations issued under RCRA Section 6002 require that preference be given in
procurement programs to the purchase of specific products containing recycled materials identified in
guidelines developed by EPA. These guidelines are listed in 40 CFR 247.
STATE AND LOCAL INSTITUIONS OF HIGHER EDUCATION, HOSPITALS, AND NON-PROFIT ORGANIZATIONS:
Pursuant to 40 CFR 30.16 state and local institutions of higher education, hospitals, and non-profit
organizations that receive direct federal funds shall give preference in their procurement programs to the
purchase of recycled products.
7. Lobbying
ALL APPLICANTS:
The recipient agrees to comply with Title 40 CFR Part 34 "New Restrictions on Lobbying". The recipient shall
include the language of this provision in award documents for all subawards exceeding $100,000 and require
that subrecipients submit certification and disclosure forms accordingly.
In accordance with the Byrd Anti-Lobbying Amendment, any recipient who makes a prohibited expenditure
under Title 40 CFR Part 34 or fails to file the required certification or lobbying forms shall be subject to a civil
penalty of not less than $10,000 and not more than $100,000 for each such expenditure.
PART 30 RECIPIENTS:
All contracts awarded by a recipient shall contain, when applicable, the anti-lobbying provision as stipulated in
the Appendix of Title 40 CFR Part 30.
Pursuant to Section 18 of the Lobbying Disclosure Act, the recipient affirms that it is not a non-profit
organization described in Section 501(c)(4) of the Internal Revenue Code of 1986; or that it is a non-profit
organization described in Section 501(c)(4) of the Code but does not and will not engage in lobbying activities
as defined in Section 3 of the Lobbying Disclosure Act.
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Administrative Conditions us 12345578 opages
8. Lobbying and Litigation
ALL APPLICANTS:
The recipient agrees to provide EPA Form 5700-53 "Lobbying and Litigation Certificate" as mandated by EPA's
annual Appropriations Act. The Chief Executive Officer of any entity receiving assistance funds must certify
that none of these funds have been used to engage in the lobbying of the federal government or in litigation
against the United States unless authorized under existing law. The certification must be submitted to your
EPA grants specialist within 90 days after the end of the project period.
Recipient shall abide by it respective OMB Circular (A-21, A-87, or A-122), which prohibits the use of federal
funds for litigation against the United States. Any Part 30 recipient shall abide by its respective OMB Circular
(A-21 or A-122), which prohibits the use of federal grant funds to participate in various forms of lobbying or
other political activities.
9. Suspension and Debarment
Recipients shall fully comply with Subpart C of 2 CFR Part 180 entitled, "Responsibilities of Participants
Regarding Transactions Doing Business With Other Persons," as implemented and supplemented by 2 CFR Part
1532. Recipient is responsible for ensuring that any lower tier covered transaction, as described in Subpart B
of 2 CFR Part 180, entitled "Covered Transactions," includes a term or condition requiring compliance with
Subpart C. Recipient is responsible for further requiring the inclusion of a similar term or condition in any
subsequent lower tier covered transactions. Recipient acknowledges that failing to disclose the information
required under 2 CFR 180.335 may result in the delay or negation of this assistance agreement, or pursuance
of legal remedies, including suspension and debarment.
Recipients may access suspension and debarment information at http://www.sam.gov. This system allows
recipients to perform searches determining whether an entity or individual is excluded from receiving Federal
assistance. This term and condition supersedes EPA Form 5700-49, "Certification Regarding Debarment,
Suspension, and Other Responsibility Matters."
10. Small and Disadvantaged Business Utilization Requirements (Non-SRF Recipients)
The recipient agrees to comply with the requirements of EPA's Program for Utilization of Disadvantaged
Business Enterprises in procurement under assistance agreements:
(a) The recipient accepts the applicable Disadvantaged Business Enterprise (DBE) "fair share" objectives
negotiated with EPA by your organization.
(b) The recipient agrees to ensure, to the fullest extent possible, that at least the applicable "fair share"
objectives 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.
(c) The recipient agrees to include in its bid documents the applicable "fair share" objectives and require all of
its prime contractors to include in their bid documents for subcontracts the negotiated "fair share"
percentages.
(d) The recipient agrees to follow the six affirmative steps stated in 40 CFR 30.44(b), 31.36(e), 35.3145(d), or
35.6580, as appropriate, and retain records documenting compliance.
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Administrative Conditions us 12345578 o page &
(e) The recipient agrees to submit an EPA For 5700-52A "MBE/WBE Utilization Under Federal Grants,
Cooperative Agreements and Interagency Agreements" as follows:
For grants awarded under 40 CFR Part 35, Subpart A (refer to the Regulatory Authority box shown in the
middle of Page 2 of this Assistance Agreement/Amendment). Reports are due annually by October 30 of each
year (covers the federal fiscal year October 1 thru September 30).
For Assistance Agreements/Amendments with institutions of higher education, hospitals, and other non-profit
organizations awarded under the Regulatory Authority of 40 CFR Part 30, reports are due annually by October
30 of each year (covers the federal fiscal year October 1 thru September 30).
Grants awarded under any other Regulatory Authority are due quarterly. These reports are due beginning with
the federal fiscal year quarter the recipient receives the award and continuing until the project is completed.
These reports must be submitted within 30 days of the end of the federal fiscal quarter (January 30, April 30,
July 30, and October 30).
All reports must be submitted to the Office for Civil Rights and Environmental Justice, CEJ-987, 4343 Main St.,
Somewhere, ST 98765. For further information, please contact your DBE Coordinator, Linda Forest, at
555.987.6543, FAX 555.987.6565.
(f) If race and/or gender neutral efforts prove inadequate to achieve a "fair share" objective, the recipient
agrees to notify EPA in advance of conscious action it plans to take to more closely achieve the "fair share"
objective. EPA may take corrective action under 40 CFR Parts 30, 31, and 35, as appropriate, if the recipient
fails to comply with these terms and conditions.
11. Small Business in Rural Areas (SBRA)
In accordance with Section 129 of Public Law 100-590, the Small Business Administration and Reauthorization
and Amendment Act of 1988, the recipient agrees to utilize and to encourage any prime contractors under the
assistance agreement to utilize small businesses located in rural areas to the maximum extent possible
through the use of the six affirmative steps.
If a contract is awarded under this assistance agreement, the recipient is also required to utilize the following
affirmative steps:
(a) Place SBRAs on solicitation lists.
(b) Make sure that SBRAs are solicited whenever there are potential sources.
(c) Divide total requirements, when economically feasible, into small tasks or quantities to permit maximum
participation by SBRAs.
(d) Establish delivery schedules, where the requirements of work permit, to encourage participation by
SBRAs.
(e) Use the services of the Small Business Administration and the Minority Business Development Agency of
the U.S. Department of Commerce, as appropriate.
(f) Require the prime contractor to comply with the affirmative steps outlined above.
(g) The recipient also agrees to retain records documenting compliance.
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Administrative Conditions us-12345578-0page?
For assistance awards for continuing environmental programs, the recipient agrees to submit an EPA Form
5700-52A by October 30 each year. All reports should be submitted to the Office for Civil Rights and
Environmental Justice, CEJ-987, 4343 Main St., Somewhere, ST 98765.
12. Availability of Funds
The recipient understands that additional funds may be awarded under this assistance agreement, subject to
availability of additional appropriated funds. EPA's approval of the work plan, budget, and project/budget
periods does not constitute an EPA commitment to provide funds in excess of the amount currently funded in
this agreement.
13. Payment to Consultants
EPA participation in the salary rate (excluding overhead) paid to individual consultants is limited to the
maximum daily rate for a Level IV of the Executive Schedule, to be adjusted annually. This limit applies to
consultation services of designated individuals with specialized skills who are paid at a daily or hourly rate. The
consultant rate is currently $483.20. This rate does not include overhead or travel costs and the recipient may
pay these in accordance with its normal travel practices.
Subagreements with firms for services which are awarded using the procurement requirements in 40 CFR
Parts 30 or 31, as applicable, are not affected by this limitation unless the terms of the contract provide the
recipient with responsibility for the selection, direction, and control of the individuals who will be providing
services under the contract at an hourly or daily rate of compensation. The recipient may refer to 40 CFR 30.27
or 40 CFR 31.36(j)(2), as applicable, for additional information.
NOTE: For future years' limits, the recipient may find the annual salary for Level IV of the Executive Schedule
on the Internet site: http://www.opm.gov/oca. Select "Salary and Wages" then "Executive Schedule". The
annual salary is divided by 2087 hours to determine the maximum hourly rate, which is then multiplied by 8 to
determine the maximum daily rate.
14. Executive Order 13202 Preservation of Open Competition
The assistance recipient agrees to comply with Executive Order 13202 (February 22, 2001, 66 Federal
Regulation 11225, entitled "Preservation of Open Competition and Government neutrality Towards
Government Contractors' Labor Relations on Federal and Federally Funded Construction Projects") as
amended by Executive Order 13208 (April 11, 2001, 66 Federal Regulation 18717 entitled "Amendment to
Executive Order 13202, "Preservation of Open Competition and Government neutrality Towards Government
Contractors' Labor Relations on Federal and Federally Funded Construction Projects").
15. Recipient Contribution/Share amounts - For Information ONLY
The share percentages currently shown in the Table A budgets and page one of this agreement are calculated
based on the current EPA funding amount and total project cost. The percentage will change if and when
additional funding is provided by assistance amendment.
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Programmatic Conditions us 12345578 o page s
1. Quarterly Performance Reports
The recipient shall submit quarterly performance reports, which are due 30 calendar days after the end of
each federal fiscal quarter. (Federal fiscal quarters end the last day of March, June, September, and
December.) Reports shall be submitted to the EPA Project Officer and may be provided electronically.
In accordance with 40 CFR Part 30.51(d) and 31.40, as appropriate, the recipient agrees to submit
performance reports that include brief information on each of the following areas:
(a) A comparison of actual accomplishments with the goals and objectives (outputs/outcomes) established
for the reporting period
(b) Reasons for slippages or why established goals (outputs/outcomes) were not met
(c) Other pertinent information, including when appropriate analysis and information of cost overruns or
high unit costs
In addition to the quarterly performance reports, the recipient shall immediately notify the EPA Project Officer
of developments that have a significant impact on the award-supported activities. In accordance with 40 CFR
Part 30.51(f) and 31.40(d), as appropriate, the recipient agrees to inform the EPA Project Officer as soon as
problems, delays, or adverse conditions become known which will materially impair the ability to meet the
objectives (outputs/outcomes) specified in the assistance agreement work plan. This notification shall include
a statement of the action taken or contemplated and any assistance needed to resolve the situation.
2. Final Performance Report
In addition to the periodic performance reports, the recipient shall submit a final performance report, which is
due 90 calendar days after the expiration or termination of the award. The report shall be submitted to the
EPA Project Officer and may be provided electronically. The report shall generally contain the same
information as in the periodic reports, but should cover the entire project period. If appropriate, the EPA
Project Officer may waive the requirement for a final performance report after completion of the project, if
the EPA Project Officer deems such a report is inappropriate or unnecessary.
3. Submissions
The grantee agrees to submit the following to the EPA Project Officer:
(a) Quarterly Reports updating the status of the Title II construction grants to be closed. Reports are due
October 31, January 31, April 30, and July 31 of each year. Each report shall include:
• A listing of the grants to be closed
• The activities remaining
• The estimate dates for submitting the administration completion packages or audit resolution work
to EPA
• A listing of the FTEs charged against the 205(g) grants
(b) An annual Closeout Strategy, due in August of each year, in accordance with EPA guidance.
END OF ASSISTANCE AGREEMENT US-12345678-0
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Assistance Amendment
U.S. ENVIRONMENTAL
PROTECTION AGENCY
Assistance Amendment
ASSISTANCE ID HO.
PRG
DOC ID
AMEND*
GA - 97423101
- 2
TYPE OF ACTION
Revision: Scope & Increase
PAYMENT METHOD:
DATE OF AWARD
08)080006
MAILING DATE
03f15/2006
ACH#
X0368
Rf CIPIENT TYPE:
Indian Tribe
Send Payment Request to:
Las Vegas Finance Center
FAX * 702-798-2423
RECIPIENT:
PAYEE:
Native Village of Raven
149 Raven St.
Raven, AK 99532
EIN: 92-0068781
Native Village of Raven
149 Raven St.
Raven, AK 99532
PROJECT MANAGER
EPA PROJECT OFFICER
EPA GRANT SPECIALIST
Edith Smith
149 Raven St., Raven, AK 99532
E-Mail: ^rjithf.g)yahoo.com
Phone: 907.243-3334
A*ienne Fleek
222 «. 7lh Avenue, *19, AOO/A
Anchorage, AK 99513
E-Mail: FleekAdrienne@epa.90v
Phone:907-271-6558
Ton/ Foumier
1200 Sixth Avenue, OMP-145
Seattle WA 98101
E-Mail: Fournier.Tony@epa.gov
Phone:206-553-1838
PROJECT TITLE AND EXPLANATION OF CHANGES
Indian General Assistance Program • Capacity Bu**ng
This amendment changes the agreement as follows: Adds $110,000 of EPA funding, extends the projectjbudget period to 09/30/2007, approves the revised
wofkplsn submitted with the application signed on 0512212005, revises administrative conditions 2 and 3, renumbers programmatic conditions and adds
programmatic condition 3.
BUDGET PERIOD
10/01/2005 - 09/30/2007
PROJECT PERIOD
10/01Q005 - 09/30/2007
TOTAL BUDGET PERIOD COST
5220,000.00
TOTAL PROJECT PERIOD COST
$220,000.00
NOTICE OF AWARD
Based on your application dated 03/31 COOS, including all modifications and amendments, the IMed States acting by and through the US Environmental
Protection Agency (EPA), hereby awards $110,000. EPA agrees to cost-share 10000% of all approved budget period costs incurred, up to and not
exceeding total federal funding ot 1220,000. Such award may be terminated by EPA without further cause if the recipient (ails to provide timely affirmation
of the award by signing under the Affirmation of Award section and returning all pages of this agreement to the Grants Management Office listed below
within 21 days after receipt, or any extension ot time, as may be granted by EPA. This agreement is subject to applicable EPA statutory provisions. The
applicable regulatory provisions are 40 CFR Chapter 1, Subchapter 8, and all terms and conditions of this agreement and any attachments.
ISSUING OFFICE (GRANTS MANAGEMENT OFFICE)
AWARD APPROVAL OFFICE
ORGANIZATION/ ADDRESS
ORGANIZATION/ADDRESS
EPA Region 10
Mail Code: OMP-145
1200 Sixth Avenue
Seattle. WA 98101
U.S. EPA, Region 10
Office of Ecosystems Tribal and PubSc Affairs
1200 Sixth Avenue
Seattle, WA 98101
THE UNITED STATES OF AMERICA BY THE U.S. ENVIRONMENTAL PROTECTION AGENCY
SIGNATURE OF AWARD OFFICIAL
TYPED NAME AND TITLE
Richard Parkin, Actg Director .Office of Ecosystems Tribal and Public Affairs
DATE
08/08/2006
AFFIRMATION OF AWARD
BY AND ON BEHALF OF THE DESIGNATED RECIPIENT ORGANIZATION
SIGNATURE
TYPED NAME AMD TITLE
Raymond Oney, Tribal Administrator
DATE
0903/2006
EPA Tribal, U.S. Territories and Insular Areas Administrative and Financial Guidance for Assistance Agreements
Last Updated September 2013 page 339 of 519
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Administrative Conditions
1. Payment Information
All recipients must be enrolled to receive funds electronically via the EPA-EFT Payment Process. This electronic
funds transfer processwas initiated by EPAin responsetothe Debt Collection Improvement Act of 1996, P.L 104-
134 thatrequires all federal paymentsbe made via Direct Deposit/Electronic Funds Transfer(DD/EFT). By signing
the assistance agreementyou are agreeing to receive payment electronically.
In order to receive payments electronically, the ACH Vendor/ Miscellaneous Payment Enrollment Form
(SF3881) must be completed and faxed to Marge Pumphrey at (702) 798-2423.
After reviewing and processing the SF3881,the Las Vegas Finance Center (LVFC) will sendyou a letter
assigning you an EFT Control Number, an EPA-EFT Recipient's Manual, and the necessary forms for requesting
funds andreportingpurposes.
If you need further assistance regarding enrollment, please contact Marge Pumphrey at (702) 798-2492 or by e-
mailto: pumphrey.margaret@epa.gov.
Any recipient currently using the Automated Standard Application for Payments (ASAP) system with
another government agency should contact Marge Pumphreyat (702) 798-2492ore-mail to:
pumphrey.margaret@epa.gov.
Under any of the above payment mechanisms, recipients may request/draw down advances for their immediate
cash needs, provided the recipient meets the requirements of 40 CFR 30.22(b) or 40 CFR 31.21 (c), as applicable.
Additionally, recipients must liquidate all obligations incurredwithin 90 calendar days of the project period end
date. Therefore, recipients must submit the final request for payment, and re fund to EPA any balance of
unobligated cash advanced within 90 calendar days after the end of the project period.
EPA I ribal, U.S. Territories and Insular Areas Administrative and Financial Guidance for Assistance Agreements
Last Updated September 2013 page 340 of 519
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2. Cost Principles/Indirect Costs Not Included (All Organizations)
The cost principles of OMB Circular A-21 (Educational Institutions), A-87 (State, Local or Indian Tribal
Governments), or A-122 (Non-Profit Organizations) are applicable, as appropriate, to this award. Since there are
no indirect costs included in the assistance budget, they are not allowable under this Assistance Agreement.
Cost Principles/Indirect Costs for Indian Tribal Governments
The cost principles of OMB Circular A-87, "Cost Principles for State, Local, and Indian Tribal Governments,"
relocated to 2 CFR Part 225, is applicable, as appropriate, to this award.
If the recipient does not have a previously established indirect cost rate, the recipient must submit their indirect
cost rate proposals to:
National Business Center
Indirect Cost Services
U.S. Department of the Interior
2180 Harvard Street, Suite 430
Sacramento, CA95815-3317
For proposal preparation, the recipient may use the Native American Government checklists located at:
http://www.nbc.gov/icstools.htinlfchecklists.
Recipients are entitled to reimbursement of indirect costs, subject to any statutory or regulatory administrative cost
limitations, if they havea current rate agreement or have submitted an in direct cost rate proposal to their
cognizant federal agency for review and approval. Recipients are responsible for maintaining an approved
in direct cost rate through out the life of the award. Recipients are responsible for submitting any subsequent rate
proposals to the appropriate cognizant agency nolaterthan 180 days afterthe end of the recipient's fiscal year.
Recipients may draw down grant funds once a rate has been approved, and only for indirect costs incurred during
the period specified in the rate agreement. Recipients are not entitled to indirect costs for any period in which the
rate has expired. Recipients may not draw down grant funds for any indirect costs which were not incurred during
fho narinrl rtf tha anr\rrtwoH mta anraamant
3. Financial Status Report (FSR) and Federal Cash Transactions Reports
FINAL FSR
The Financial Status Report(FSR), Standard Form 269A(or Standard Form 269 if program income is generated),
for this award is due to EPAno later than 90 days afterthe budget period expires.
For agreements with multiple budget activities, separate FSRs must be provided for each of the activities, sites, or
budgets, as applicable.
FEDERAL CASH TRANSACTIONS REPORTS
The recipientwill provide timely reporting of cash disbursements and balances through annual submission (within
fifteen (15)workingdaysfollowingDecember31 of any given calendaryear)ofa FederalCash Transactions
Report (SF-272).
The Final FSR and Federal Cash Transactions Reports maybe faxed to (702) 798-2423 or mailed to:
US Environmental Protection Agency
Las Vegas FinanceCenter
P.O. Box 98515
Las Vegas, NV89193-8515
For additional information, please contact Marge Pumphrey at (702) 798-2492 or email:
Pumphrev.Margaret@epa.gov.
EPAmay take enforcement actions in accordance with 40 CFR 30.62 or 40 CFR 31.43 if the recipient does not
comply with this term and condition.
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4. Audit Requirements
The recipient agrees to comply with the requirements of OMB Circular A-133, "Audits of States, Local
Governments, and Non-Profit Organizations."
5. Hotel and Motel Fire Safety Act
Effective October 1,1994, the recipient agrees to ensure that all conference, meeting, convention, or training
space funded in whole or in part with Federal funds, complies with the Hotel and Motel Fire Safety Act of 1990.
6. Recycled Paper
ALL APPLICANTS:
In accordance with EPAOrder 1000.25 and Executive Order 13101, Greeningthe Government Through Waste
Prevention, Recycling, and Federal Acquisition, the recipient agrees to use recycled paper for all reports which are
prepared as a part of this agreement and delivered to EPA. This requirement does not apply to reports prepared
on forms supplied by EPA, or to Standard Forms, which are printed on recycled paper and are available through
the General Services Administration. Please note that Section 901 of E.0.13101, dated September 14,1998,
revoked E.0.12873, Federal Acquisition, Recycling, and Waste Prevention in its entirety.
7. Lobbying
ALL RECIPIENTS:
The recipient agrees to comply with Title 40 CFR Part 34, New Restrictions on Lobby ing. The recipient shall
include the language of this provision in award documents for all subawards exceeding $100,000, and require that
subrecipients submit certification and disclosure forms accordingly.
In accordance with the ByrdAnti-Lobbying Amendment, any recipient who makes a prohibited expenditure under
Title 40 CFR Part 34 or fails to file the required certification or lobbying forms shall be subjectto a civil penalty of
not less than $10,000 and not more than $100,000 for each such expenditure.
8. Lobbying and Litigation
ALL RECIPIENTS:
Pursuant to EPA's annual Appropriations Act, the chief executive officer of this recipient agency shall require that
no grant funds have been usedto engage in lobbying of the Federal Government or in litigation against the United
States unless authorized under existing law. As mandated by this Act, the recipient agrees to provide certification
to the award official via EPA Form 5700-53, Lobbying and Litigation Certificate, within 90 days after the end of
project period.
Recipient shall abide by its respective OM B Circular (A-21, A-87, or A-122), which prohibits the use of federal
grant funds for litigation against the United States.
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9. Suspension and Debarment
Recipient shall fully comply with Subpart C of 40 CFR Part 32, entitled "Responsibilities
of Participants Regarding Transactions." Recipient is responsible for ensuring that any
lower tier covered transaction, as described in Subpart B of 40 CFR Part 32, entitled
"Covered Transactions," includes a term or condition requiring compliance with Subpart
C. Recipient is responsible for further requiring the inclusion of a similar term or
condition in any subsequent lower tier covered transactions. Recipient acknowledges
that failing to disclose the information required under 40 CFR 32.335 may result in the
delay or negation of this assistance agreement, or pursuance of legal remedies,
including suspension and debarment.
Recipient may access the Excluded Parties List System at http://www.epls.gov. This
term and condition supersedes EPA Form 5700-49, "Certification Regarding Debarment,
Suspension, and Other Responsibility Matters."
10. Small and Disadvantaged Business Utilization Requirements (Indian Tribes)
The recipient agrees to follow the six affirmative steps stated in 40 CFR 31.36(e), 35.3145(d) or
35.6580, as appropriate, and to require its prime contractor to follow these affirmative steps if it
awards subcontracts; the recipient also agrees to retain records documenting compliance.
The six affirmative steps contained in 40 CFR 31.36(e) are as follows:
(a) Placing qualified small and minority businesses and women's business enterprises on
solicitation lists;
(b) Assuring that small and minority businesses, and women's business enterprises are solicited
whenever they are potential sources;
(c) Dividing total requirements, when economically feasible, into smaller tasks or quantities to
permit maximum participation by small and minority businesses, and women's business
enterprises;
(d) Establishing delivery schedules, where the requirement permits, which encourage participation
by small and minority business, and women's business enterprises;
(e) Using the services and assistance of the Small Business Administration, and the Minority
Business Development Agency of the Department of Commerce; and
(f) Requiring the prime contractor, if subcontracts are to be let, to take the affirmative steps listed
above.
The recipient agrees to submit an EPA form 5700-52A, "MBE/WBE Utilization Under Federal
Grants, Cooperative Agreements and Interagency Agreements" as follows:
For grants awarded under 40 CFR Part 35, Subpart B (refer to the Regulatory Authority box shown
in the middle of Page 2 of the Assistance Agreement/Amendment), reports are due annually by
October 30 of each year (covers the Federal Fiscal Year October 1 - September 30).
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(Continued)
Grants awarded under any other Regulatory Authority are due Quarterly. These reports
are due beginning with the Federal Fiscal Year quarter the recipient receives the award
and continuing until the project period ends, These reports must be submitted within 30
days of the end of the Federal Fiscal Quarter (due dates are January 30, April 30, July
30, and October 30).
All reports must be submitted to the Grants Administration Unit, OMP-145, 1200
Sixth Avenue, Seattle, WA98101. For further information, please contact Valerie
Badon at (206) 553-1141, email: Badon.Valerie@epa.gov.
In accordance with Section 129 of Public Law 100-590, the Small Business
Administration and Reauthorization and Amendment Act of 1988, the recipient agrees to
utilize and to encourage any prime contractors under the assistance agreement to utilize
small businesses located in rural areas to the maximum extent possible through the use
of the six affirmative steps.
11. Payment to Consultants
EPA participation in the salary rate (excluding overhead) paid to individual
consultants retained by recipients or by a recipient's contractors or subcontractors
shall be limited to the maximum daily rate for Level IV of the Executive Schedule
(formerly GS-18), to be adjusted annually. This limit applies to consultation services
of designated individuals with specialized skills who are paid at a daily or hourly rate.
As of January 1, 2008, the limit is $571.15 per day $71.39 per hour. This rate does
not include transportation and subsistence costs for travel performed (the recipient
will pay these in accordance with their normal travel reimbursement practices).
Subagreements with firms for seivices which are awarded using the procurement
requirements in 40 CFR Parts 30 or 31, as applicable, are not affected by this
limitation unless the terms of the contract provided the recipient with responsibility for
the selection, direction, and control of the individuals who will be providing services
under the contract at an hourly or daily rate of compensation. See 40 CFR 30.27(b)
or 40 CFR 31.36(j), as applicable, for additional information.
NOTE: For future years' limits, the recipient may find the annual salary for Level IV of
the Executive Schedule on the following Internet site: http://www.opm.gov/oca.
Select "Salary and Wages", and select "Executive Schedule". The annual salary is
divided by 2087 hours to determine the maximum hourly rate, which is then
multiplied by 8 to determine the maximum daily rate.
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12. Tribal Council Costs
With regard to payments to members of the Tribal Council, OMB Circular A-87, Attachment B,
paragraph 19, provides that general costs of government are unallowable, and subparagraph
19(a)(2) specifically includes in this prohibition salaries and expenses of tribal councils whether
incurred for purposes of legislation or executive direction. At the same time, however, A-87
includes other provisions which may or may not allow payment of grant funds to Council members:
(a) Paragraph 2 provides that costs incurred by advisory councils are allowable where authorized
in advance by the awarding agency.
(b) Paragraph 32 provides that costs of professional and consultant services rendered by persons
who are members of a particular profession or possess a special skill, and who are not officers or
employees of the governmental unit, are allowable.
(c) Paragraph 27 provides that meetings and conferences, where the primary purpose is the
dissemination of technical information, are allowable.
(d) Paragraph 19b. provides that for federally-recognized Indian tribal governments, the portion of
salaries and expenses directly attributable to managing and operating Federal programs by the
chief executive and his staff is allowable.
Any costs pertaining to the Tribal Council must be in accordance with OMB Circular A-87. The
recipient should refer to the entire paragraphs cited above and A-87 in its entirety because the
above are excerpts only, and other provisions could affect the allowability of costs. Documentation
must be kept in your records as to how any of those costs charged to this grant fit with the above
mentioned paragraphs and how the costs relate to the work plan components.
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GUIDE TO PREPARING BUDGET DETAIL
Budget information should be supported in at least the level of detail described below.
• Personnel - List all staff positions by title. Give annual salary, percentage of time assigned to
the project, and total cost for the budget period.
• Fringe Benefits - Identify the percentage used, the basis for its computation, and the types
of benefits included.
• Travel - Specify the mileage, per diem, estimated number of trips in-State and out-of-State,
and other costs for each type of travel.
• Equipment - Identify each item to be purchased which has an estimated acquisition cost of
$5,000 or more per unit and a useful life of more than one year. Items with a unit cost of
less than $5,000 are deemed to be supplies, pursuant to 40 CFR 31.3 and 30.2.
• Supplies - "Supplies" means all tangible personal property other than "equipment". The
budget detail should identify categories of supplies to be procured (e.g., laboratory supplies
or office supplies).
• Contractual - Identify each proposed contract and specify its purpose and estimated cost.
• Other - List each item in sufficient detail for EPA to determine the reasonableness and
allowability of its cost.
• Indirect Charges - If indirect charges are budgeted, indicate the approved rate and base.
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Budget Detail - Page 1
Personnel
Percent of Time
Position/Title Annual Salary Assigned to Project Amount Total
Project Manager
Env. Specialist
Env. Health Tech
Accountant
$70,000
$60,000
$45,000
$50,000
50%
100%
100%
50%
$ 35,000
60,000
45,000
25.000
Total Personnel $165,000
Fringe Benefits - 20.0% of Basic Salary $ 33,000 33,000
- Includes Retirement, Health Benefits,
Annual & Sick Leave, and Life Insurance
Travel
In-State Travel
Travel for meeting and inspections: 100 miles per $ 1,000
trip @$,25 per mile, 40 trips
Out of State Travel -
Travel for EPA meetings
- Per Diem-4 people x $100 per night x 2 nights $ 800
- Airfare - 4 x $500 round trip 2,000
- Incidental - 4 x $50 200
$ 3,000
Total Travel 4,000
Equipment- Level A Protective Clothing and $ 10,000 10,000
Respirator Apparatus (2 @ $5,000)
Sjipjiies - Office Supplies $ 2,000
- Laboratory Supplies (solvents, glassware 3,000
reagents, rubber gloves,)
Total Supplies 5,000
EPA Tribal, U.S. Territories and Insular Arras Administrative and Financial Guidance for Assistance Agreements
Last Updated September 2013 page 347 of 519
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Budget Detail - Page 2
Contractual - Consultant services to design $ 136,000
data tracking system
- Audit $ 1.325
Total Contractual $ 137,325
Other - Long Distance Telephone Calls $ 8,000
Postage 1,000
Printing and Reproduction 2.200
Total Other $ 11.200
Total Direct Costs $ 365,525
Indirect Charges - S244.525* x 25% $ 61,131 61.131
* Indirect cost base includes Total Direct Costs
($365,525) less Equipment ($10,000) and less
the amount of each contract in excess of $25,000
($111,000)
Total Project Costs $ 426,656
EPA Tribal, U.S. Territories and Insular Areas Administrative and Financial Guidance for Assistance Agreements
Last Updated September 2013 page 348 of 519
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FINANCIAL STATUS REPORT
(Short Form)
Public reporting burden for this collection of information is estimated to average 90 minutes per response, including time for reviewing instructions, searching
existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. Send comments regarding the
burden estimate or any other aspect of this collection of information, including suggestions for reducing this burden, to the Office of Managementand Budget,
Paperwork Reduction Project (0348-0038), Washington, DC 20503.
PLEASE DO NOT RETURN YOUR COMPLETED FORM TO THE OFFICE OF MANAGEMENT AND BUDGET.
SEND IT TO THE ADDRESS PROVIDED BY THE SPONSORING AGENCY.
Please type or print legibly. The following general instructions explain how to use the form itself. You may need additional information to
complete certain items correctly, or to decide whether a specific item is applicable to this award. Usually, such information will be found in
the Federal agency's grant regulations or in the terms and conditions of the award. You may also contact the Federal agency directly.
Item
Entry
Item
Entry
1, 2 and 3. Self-explanatory.
4. Enter the Employer Identification Number (EIN)
assigned by the U.S. Internal Revenue Service.
5. Space reserved for an account number or other
identifying number assigned by the recipient.
6. Check yes only if this is the last report for the
period shown in item 8.
7, Self-explanatory.
8. Unless you have received other instructions from
the awarding agency, enter the beginning and
ending dates of the current funding period. If this is
a multi-year program, the Federal agency might
require cumulative reporting through consecutive
funding periods. In that case, enter the beginning
and ending dates of the grant period, and in the rest
of these instructions, substitute the term "grant
period" for "funding period."
9. Self-explanatory.
10. The purpose of columns I, II, and III is to show the
effect of this reporting period's transactions on
cumulative financial status. The amounts entered in
column I will normally be the same as those in
column III of the previous report in the same
funding period. If this is the first or only report of the
funding period, leave columns I and II blank. If you
need to adjust amounts entered on previous reports,
footnote the column I entry on this report and attach
an explanation,
10a. Enter total program outlays less any rebates,
refunds, or other credits. For reports prepared on a
cash basis, outlays are the sum of actual cash
disbursements for direct costs for goods and
services, the amount of indirect expense charged,
the value of in-kind contributions applied, and the
amount of cash advances and payments made to
subrecipients. For reports prepared on an accrual
basis, outlays are the sum of actual cash
disbursements for direct charges for goods and
services, the amount of indirect expense incurred,
•U S. Government Printing Office: 1993 - 3-42-197/81289
the value of in-kind contributions applied, and the net
increase or decrease in the amounts owed by the recipient
for goods and other properly received, for services
performed by employees, contractors, subgrantees and
other payees, and other amounts becoming owed under
programs for which no current services or performances are
required, such as annuities, insurance claims, and other
benefit payments.
10b. Self-explanatory.
10c. Self-explanatory.
10d. Enter the total amount of unliquidated obligations,
including unliquidated obligations to subgrantees and
contractors.
Unliquidated obligations on a cash basis are obligations
incurred, but not yet paid. On an accrual basis, they are
obligations incurred, but for which an outlay has not yet
been recorded.
Do not include any amounts on line 10d that have been
included on lines 10a, b, ore.
On the final report, line 10d must be zero.
10e. f, g, h, h and i. Self-explanatory.
11 a. Self-explanatory.
11b. Enter the indirect cost rate in effect during the reporting
period.
11c. Enter the amount of the base against which the rate was
applied.
11d. Enter the total amount of indirect costs charged during the
report period.
11e. Enter the Federal share of the amount in 11d.
Note: If more than one rate was in effect during the period shown
in item 8, attach a schedule showing the bases against
which the different rates were applied, the respective rates,
the calendar periods they were in effect, amounts of indirect
expense charged to the project, and the Federal share of
indirect expense charged to the project to date.
SF-269A (Rev. 7-97) Back
-------
FINANCIAL STATUS REPORT
(Short Form)
(Follow instructions on the back)
1 . Federal Agency and Organizational Element
to Which Report is Submitted
U.S. EPA
2. Federal Grant or Other Identifying Number Assigned
By Federal Agency
GA-9600001
OMB Approval Page of
No.
0348-0038 1 1
pages
3. Recipient Organ zation (Name and complete address, including ZIP code)
Raven Village, P.O. Box 222, Raven, AK 99222
4. Employer Identif cation Number
91-1112222
8, Funding/Grant Period (See instructions)
From: {Month, Day, Year}
10/1/2006
5. Recipient Account Number or Identifying Number
To: (Month, Day, Year)
9/30/2008
10. Transactions:
a. Total outlays
b. Recipient share of outlays
c, Federal share of outlays
d. Total unliquidated obligations
e. Recipient share of unliquidated obligations
f. Federal share of unliquidated obligations
g. Total Federal sharefSum of tines c and f)
h. Total Federal funds authorized for this funding period
i. Unobligated balance of Federal fundsfDne h minus line g)
6. Final Report
[3 Yes DN°
9. Period Covered by this Report
From: (Month, Day, Year)
10/1/2006
i
Previously
Reported
110,000.00
110,000.00
II
This
Period
110,000.00
110,000.00
7. Basis
[] Cash [7| Accrual
To: (Month, Day, Year)
9/30/2008
in
Cumulat ve
220,000.00
0.00
220,000.00
220,000.00
220,000.00
0.00
a. Type of RatefP/ace "X" in appropriate box)
11. Indirect fl Provisional f~l Predetermined [7] Final fl Fixed
Expense b. Rate
see below
c. Base
d. Total Amount e. Federal Share
1 2. Remarks: Attach any explanations deemed necessary or information required by Federal sponsoring agency in compliance with governing
legislation.
indirect rates: 2006 - 37.74% for 21 ,958 2007 - 24.22% for 1 5,334 2008 - 20.39% for 1 5,839
1 3. Certification: t certify to the best of my knowledge and belief that this report Is correct and complete and that alt outlays and
unliquidated obligations are for the purposes set forth in the award documents.
Typed or Printed Name and Title
Victor Miller, Chairman
Signature of Author zed Certifying Official
Telephone (Area code, number and extension)
907-222-2222
Dale Report Submitted
October 24, 2008
NSN 7540-01-218-4387
Standard Form 269A (Rev. 7-97)
Prescribed by OMB Circulars A-102 and A-1K
EPA Tribal, U.S. 1 erritories and Insular Areas Administrative and Financial Guidance for Assistance Agreements
Last Updated September 2013 page 350 of 519
-------
Form can be found at: http://www.epa.gov/ogd/forms/adobe/5700-54.pdf
KEY CONTACTS
AUTHORIZED REPRESENTATIVE - This is the individual who has the authority to sign the
application for Federal Assistance (SF-424) and execute the Agreement on behalf of the applicant.
Circle One ( Mr. Mrs. Ms. )
NAME:
TITLE:
TELEPHONE: FAX:
E-MAIL ADDRESS:
PROGRAM/PROJECT MANAGER - This is the individual who is responsible for the management of
the Project for the applicant.
Circle One ( Mr. Mrs. Ms. )
NAME:
TITLE:
TELEPHONE: FAX:
E-MAIL ADDRESS:
FINANCIAL REPRESENTATIVE - This is the individual who has been assigned responsibility for the
maintenance of the accounting and financial management system for the applicant.
Circle One ( Mr. Mrs. Ms.)
NAME:
TITLE:
TELEPHONE: FAX:.
E-MAIL ADDRESS:
PAYEE ADDRESS - If different than recipient address:
NAME:
ADDRESS:
CITY, STATE, ZIP:
optional
EPA Tribal, U.S. Territories and Insular Areas Administrative and Financial Guidance for Assistance Agreements
Last Updated September 2013 page 351 of 519
-------
Print Form
Form Approved OMB No:2()30-0020 Approval Expires 07/3 1/09
ADDITIONAL KEY CONTACTS
(Use as many sheets as needed.)
Major Co-Investigators: Individual responsible for the completion of major portions of the proposed
work.
Name:
Title:
Mailing Address:
Phone Number: _
FAX Number: _2
E-Mail Address:
Web URL:
Major Co-Tnvestigators: Individual responsible for the completion of major portions of ihe proposed
work.
Name:
Title:
Mailing Address:
Phone Number: _
FAX Number: _
E-Mail Address:
Web URL:
Maj or Co-Investigators: Individual responsible for the completion of major portions of the proposed
work.
Name:
Title:
Mailing Address:
Phone Number:
FAX Number: _^
E-Mail Address:
Web URL:
EPA Form 5700-54 (Rev 4-02)
-------
Narrative Statement or Work Plan
WORK PLAN TEMPLATES
Yearl
FY 2007 (October 1, 2007 - September 30, 2008)
General Assistance Program
WORK PLAN TEMPLATE
TRIBE/TRIBAL CONSORTIA: Raven Village Tribe of King Cove
Work Plan Project/Budget Period Begin: October 1, 2007 End: September 30, 2008
WORK PLAN
COMPONENT 1:
Begin sampling PSP levels in the local subsistence clams.
PERSONNEL:
PRIMARY CAPACITY AREA DEVELOPED (check one):
Legal Enforcement/Compliance Technical X Communication Administrative
Solid/Hazard
ENVIRONMENTAL
OUTCOME(S):
INTERMEDIATE
OUTCOME(S):
(this work plan
period)
ous Waste Implemen
tation
1 Human health risks will be minimized substantially.
• We will have accurate test results indicating PSP levels in the
subsistence clams on a monthly basis.
1 The public will be informed of the risks associated with consuming
local clams each month.
1 Our staff, along with local residents will have a greater understanding
of what PSP is and how it can affect us if consumed.
1 The test results will be a valuable long-term resource. They can be used
as a comparator against future sample results to establish a long range
pattern.
ESTIMATED COMPONENT COST: $12469.36
COMMITMENTS
1.1 The IGAP Staff will gather all of the
information that they can find
about PSP in clams.
ESTIMATED WORK YEARS:
CAPACITY AREA END
DEVELOPED
Technical 12/1
1.2
DATE
Outputs and Deliverables
./07 ~ Informative documents
EPA Tribal, U.S. Territories and Insular Areas Administrative and Financial Guidance for Assistance Agreements
Last Updated September 2013 page 353 of 519
-------
1.2
1.3
1.4
1.5
1.6
The IGAP Staff will create
educational materials to distribute
through-out the community to
educate residents and visitors
about PSP in clams.
The IGAP Coordinator will contact
the Alaska Department of
Environmental Conservation
(ADEC) to set up the details for
monthly testing of the clams and
order the necessary shipping
materials
The IGAP Staff will dig the
necessary amount of clams each
month, prepare them as directed
by ADEC, and ship them out for
testing.
The IGAP Staff will create a sign
which will be located near the
clam bed to inform the public of
the monthly PSP levels and if the
clams are safe to consume.
The IGAP Coordinator will ensure
that an electronic copy of the
results is created and that a hard
copy is available for public
viewing.
Communications
Administrative
Compliance/
Non-
Administrative
Communications
Technical/
Administrative
10/5/07
10/5/07
9/30/08
10/30/07
9/30/08
~ Educational pamphlet
~ Testing Schedule
~ Clams to send to ADEC
for testing.
~ Informational sign
~ PSP results for one year
EPA Use Only
2007 - 2008 EPA Strategic Plan
GoalX:
Objective X.X:
Sub-objective X.X.X:
General Assistance Program
WORK PLAN TEMPLATE
TRIBE/TRIBAL CONSORTIA: Raven Village Tribe of King Cove
Work Plan Project/Budget Period Begin: October 1, 2007 End: September 30, 2008
WORK PLAN
COMPONENT 2:
Look for funding to help upgrade the local landfill with a burn-box.
EPA Tribal, U.S. Territories and Insular Areas Administrative and Financial Guidance for Assistance Agreements
Last Updated September 2013 page 354 of 519
-------
PERSONNEL:
PRIMARY CAPACITY AREA DEVELOPED (check one):
Legal Enforcement/Compliance Technical Communication Administrative
X Solid/Hazardous Waste Implementation
ENVIRONMENTAL
OUTCOME(S):
A burn-box will help to extend the life of the landfill, thus delaying the
need to destroy new land to build a new one.
Less raw trash will be entering the cells, which will minimize the
amount of leachate created, thus minimizing the threat leachate poses
to the surrounding land and water, as well as animal and human
health.
INTERMEDIATE
OUTCOME(S):
(this work plan
period)
The landfill will be cleaner
The local Landfill Operator will have a better understanding of landfill
operation, which will allow for him to take better care of the landfill.
We will be taking the first steps in complying with the States new
regulation which requires that all burning be above ground and
contained.
ESTIMATED COMPONENT COST: $38713.96
ESTIMATED WORK YEARS: 1.00
COMMITMENTS
CAPACITY AREA
DEVELOPED
END DATE
Outputs and Deliverables
1.1
The IGAP Staff will gather
information about types of burn-
boxes that are available, their
costs, and what other Alaska
communities are using.
Compliance/
Non-
Administrative
12/15/07
~ A list that outlines the
pros and cons of
various burn-boxes
1.2
The IGAP Coordinator will present
their research to the City of King
Cove Mayor and Public Works
Director, at which time we will
determine what type of burn-box
would be best suited for our
community. We will also estimate
how much money we are going to
need to come up with.
Administrative
10/5/07
~ Meeting notes
~ We will know what
burn-box we want
~ An estimated total cost
EPA Tribal, U.S. Territories and Insular Areas Administrative and Financial Guidance for Assistance Agreements
Last September 2013 355 of 519
-------
1.3
1.5
1.6
The IGAP Coordinator, with
assistance from the City of King
Cove Manager, will locate possible
grant funding, choose a grant to
pursue, begin drafting the grant,
submit it/them, and wait for
feedback.
If successful in obtaining funding
for a new burn-box, the IGAP Staff
will create an educational flier to
inform residence about the new
burn-box and how to properly
separate their trash, which will be
distributed to them in their City
utility bills.
Whether the burn-box funding is
successful or not, the IGAP
Coordinator will ask the City Public
Works Director if he would be
interested in sending his Landfill
Operator to training. If so, the
Coordinator will locate a landfill
operator training and set up the
arrangements.
Administrative
Communications
Technical/
Administrative
6/30/08
9/30/08
9/30/08
~ A list of funding sources
~ Grant notes, outlines,
attachments, and final
draft(s)
~ Information about the
new burn-box
~ An informational flier
~ Training schedule
~ A certificate of
completion from the
training.
~ Resources gathered
from the training
EPA Use Only
2007 - 2008 EPA Strategic Plan
GoalX:
Objective X.X:
Sub-objective X.X.X:
General Assistance Program
WORK PLAN TEMPLATE
TRIBE/TRIBAL CONSORTIA: Raven Village
Work Plan Project/Budget Period Begin: October 1, 2007 End: September 30, 2008
WORK PLAN
COMPONENTS:
Site specific community clean-ups and a continuation of waste education
campaign efforts
PERSONNEL:
PRIMARY CAPACITY AREA DEVELOPED (check one):
Legal Enforcement/Compliance Technical
Solid/Hazardous Waste Implementation X
Communication X Administrative
EPA Tribal, U.S. Territories and Insular Areas Administrative and Financial Guidance for Assistance Agreements
Last Updated September 2013 page 356 of 519
-------
ENVIRONMENTAL
OUTCOME(S):
INTERMEDIATE
OUTCOME(S):
(this work plan
period)
1 Litter in common and/or public areas in the community will be greatly
reduced.
1 Residents will be more aware of the health and physical risks
associated with hazardous and solid waste pollution.
1 Important areas in the community will be cleaner.
1 We will see a reduction in recyclable materials entering the landfill.
1 Community members will be more aware of the negative effects that
solid and hazardous waste has on the environment and their health.
1 People will change their disposal methods.
ESTIMATED COMPONENT COST: $15449.08
COMMITMENTS
1.1
1.2
1.3
The IGAP Staff will gather
information from the internet
pertaining to the risks associated
with improper disposal of solid
and hazardous materials. They will
also gather information on clean-
up efforts and educational ideas
that have been successful in other
communities through-out the
world.
The IGAP Staff will create a list of
public and common areas in the
community that attract litter and
inventory the types that typically
found there. They will brainstorm
ideas about how to prevent
people from improperly disposing
of their trash in that area in the
future.
The IGAP Staff will use materials
that were previously created in
the department as well as new
resources to educate and work
local officials, local business,
residents, and the school to teach
them about the importance of
keeping the community clean.
ESTIMATED WORK YEARS: .04
CAPACITY AREA
DEVELOPED
Technical
Technical
Communications
-Solid Waste
END DATE
11/30/07
12/31/07
9/30/08
Outputs and Deliverables
~ Informational materials
~ A list of communities
and their solid /
hazardous waste clean-up
efforts.
~ An outline profiling
public areas in the
community that are
affected by litter.
~ A litter inventory.
~ A list of ideas for
addressing problem areas
in town and preventing
them from getting that
way in the future.
~ educational pamphlets
and posters
EPA Tribal, U.S. Territories and Insular Areas Administrative and Financial Guidance for Assistance Agreements
Last September 2013 357 of 519
-------
1.4
1.5
1.6
The IGAP Staff will determine if
trash receptacles are needed for
various affected areas. If
receptacles are necessary, the
staff will determine the types
needed based on litter common to
the area and order according.
The IGAP Staff will solicit
volunteers, clean-up affected
areas, place receptacles where
appropriate. They will also create
appropriate educational signage
and post in the area.
The IGAP Staff will create an
educational newsletter to
distribute in the community. The
newsletter will include
information about various
environmental projects, with an
emphasis on solid waste activities.
This will be distributed on a
quarterly basis.
Administrative -
Technical
Technical -
Communications
-Solid Waste
Communications
3/31/08
9/30/08
9/30/08
~ A list of internet sites
that sell various types of
receptacles.
~ A list of receptacle price
comparisons.
~ Litter receptacles.
~ Receptacles in common
local areas.
~ Educational signage.
~ Local volunteers.
~ Quarterly environmental
newsletters.
EPA Use Only
2007 - 2008 EPA Strategic Plan
GoalX:
Objective X.X:
Sub-objective X.X.X:
General Assistance Program
WORK PLAN TEMPLATE
TRIBE/TRIBAL CONSORTIA: Raven Village Tribe of King Cove
Work Plan Project/Budget Period Begin: October 1, 2007 End: September 30, 2008
WORK PLAN
COMPONENT 4:
Conduct baseline water quality sampling
PERSONNEL:
PRIMARY CAPACITY AREA DEVELOPED (check one):
Legal Enforcement/Compliance Technical X Communication Administrative
Solid/Hazardous Waste Implementation
ENVIRONMENTAL
OUTCOME(S):
Threats to local water resources will be identified.
EPA Tribal, U.S. Territories and Insular Areas Administrative and Financial Guidance for Assistance Agreements
Last Updated September 2013 page 358 of 519
-------
INTERMEDIATE
OUTCOME(S):
(this work plan
period)
1 The IGAP staff will have the knowledge and ability to begin managing
local water resources.
1 A year's worth of data will be collected which can be used in the future
to detect changes.
ESTIMATED COMPONENT COST: $22768.80
COMMITMENTS
1.1
1.2
1.3
1.4
1.5
1.6
1.7
The IGAP Staff will work with the
EPA to finalize the draft QAPP
submitted in FY07.
The IGAP Staff will contact the
Yukon River Inter-tribal Watershed
Council and others to see if they are
offering any baseline water quality
training and attend.
The IGAP Staff will seek funding
from the USGS and other sources to
help sustain the program.
The IGAP Staff will work with the
local school science department to
arrange education and a cycle of
baseline testing with the students
for educational purposes. This
education will benefit the students
as well as the IGAP staff.
Once the approved QAPP arrives,
The IGAP Staff will order necessary
supplies and begin collecting
baseline data from various fresh
water sites and inter-tidal areas.
The IGAP Staff will store all original
data collected in a fire-proof safe,
enter it electronically, report it in
the appropriate EPA database (ex.
STORET system), and report it in a
local community newsletter.
If it is determined that blind testing
for data accuracy or lab analysis is
necessary, the IGAP Coordinator
will determine costs and make the
arrangements.
ESTIMATED WORK YEARS: 1.2
CAPACITY AREA
DEVELOPED
Administrative
Administrative
Administrative
Communication
-Technical
Administrative
-Technical
Communication
Administrative
Administrative
-Technical
END
DATE
1/15/08
11/1/07
9/30/08
5/1/08
9/1/08
9/30/08
9/30/08
Outputs and Deliverables
~ An approved QAPP for
water quality data
collection.
~ A list of organizations
and trainings being offered
for water quality.
~ Grant proposal for
additional funding.
~ Age appropriate
educational materials.
~ A years worth of baseline
water quality data from
the King Cove Watershed.
~ Data entered in the EPA
Water Database.
~ Community newsletter
explaining data.
~ Historical data set.
~ Spiked samples to ensure
data accuracy.
~ Laboratory data.
EPA Use Only
2007 - 2008 EPA Strategic Plan
EPA Tribal, U.S. Territories and Insular Areas Administrative and Financial Guidance for Assistance Agreements
Last Updated September 2013 page 359 of 519
-------
GoalX:
Objective X.X:
Sub-objective X.X.X:
General Assistance Program
WORK PLAN TEMPLATE
TRIBE/TRIBAL CONSORTIA: Raven Village Tribe of King Cove
Work Plan Project/Budget Period Begin: October 1, 2007 End: September 30, 2008
WORK PLAN
COMPONENTS:
PERS
PRIIV
Legj
Adrr
Educate the Community about the quality
of their C ty plumbed drinking water.
ONNEL:
ARY CAPACITY AREA DEVELOPED (check one):
si Enforcement/Compliance X Technical Communication X
linistrative Solid/Hazardous Wa
ENVIRONMENTAL
OUTCOME(S):
INTERMEDIATE
OUTCOME(S):
(this work plan
period)
ste Implementat
ion
1 Residents will be reassured that the drinking water is safe for their
health.
• With the home testing kits, the residents will be more reassured that
their drinking water is safe.
1 Although the City does release an annual drinking water quality report,
it is difficult for the average person to understand. Our flier will
provide residents with important information about their water in an
easy to understand way.
ESTIMATED COMPONENT COST: $20598.80
1.1
1.2
COMMITMENTS
The IGAP Staff will obtain copies of
the State of Alaska drinking water
standards
The IGAP Coordinator will arrange a
tour of the local water plant for
IGAP employees.
ESTIMATED WORK YEARS: . 10
CAPACITY AREA
DEVELOPED
Technical
Administrative
END
DATE
2/28/08
3/15/08
Outputs and Deliverables
~ A printed copy of the
State's drinking water
standards
~ Tour notes that explain
where our drinking water
comes from, the process it
needs to go through
before it reaches our
homes.
-------
1.3
1.4
The IGAP Staff will work with the
City of King Cove Water Treatment
staff to develop an easy to
understand flier to distribute to
residents that explains to them the
water treatment process. It will also
include test results of samples the
City sends in for testing.
The IGAP Coordinator will order
home test kits for educational
purposes.
Communication
Enforcement -
Compliance
4/30/08
5/30/06
~ An educational Flier
~ Home test kits
EPA Use Only
2007 - 2008 EPA Strategic Plan
GoalX:
Objective X.X:
Sub-objective X.X.X:
EPA Tribal, U.S. Territories and Insular Areas Administrative and Financial Guidance for Assistance Agreements
Last Updated September 2013 page 361 of 519
-------
Survey of Recipient's Management Systems
Applicants for assistance under EPA agreements are required to have an adequate financial management
systems and procedures which provide efficient and effective accountability and control of all property, funds,
and assets related to the agreement. This survey indicates the accounting standards that EPA considers basic to
adequate financial management.
Completion of this survey is optional.
First-time applicants - We request that you complete and submit this survey with your application package to
help determine whether their present systems can meet these requirements.
All other applicants -We recommend you complete and submit this survey each time you apply for EPA
assistance.
Please mark each of these questions, YES, NO, or N/A,
NAME OF APPLICANT:
Accounting
1) Have project accounting records been established to record the costs applicable to the
EPA agreement and other direct activities?
2) Are all costs of a project posted to these records? Are the records used as the basis for
vouchers and Financial Status Reports submitted to EPA?
3) Before posting, are costs reviewed for reasonableness, allowability, and allocability to the
project?
4) Are project accounts broken into subaccounts by program element or cost objective?
5) Is appropriate documentation maintained to support the costs of:
a) personnel?
b) fringe benefits?
c) travel?
d) purchases of material, supplies, and equipment?
e) consultants?
f) other costs?
6) Are costs posted in these records reflected on and reconciled with control accounts
contained in the general ledger?
7) Are accounting records subjected to an independent audit at least every two years?
-------
Personnel
8) Do personnel and/or payroll records support the time and attendance, leave, and earnings
for all employees?
9) Are time distribution records maintained to show the amount of time spent on each
project covered under the agreement, as well as time spent on other projects? (These
records are required for all personnel spending less than full time on an individual
project).
10) Are there controls to assure that personnel costs are distributed in accordance with the
time distribution records?
11) Are there established procedures to govern the charges of personnel lime related to
partners or principals in closely held corporations?
12) Are there formal procedures regarding bonuses, retirement plans, and/or profit sharing?
Travel
13) Arc there established policies to govern reimbursement for travel?
14) Do these policies require travel vouchers to be submitted which:
a) show the time and purpose of the travel?
b) clearly indicate the nature of expenses being claimed?
c) require the submission of supporting documentation?
•9
Procurement
15) Are there established procedures to assure that professional services, equipment, material,
and/or supplies requested are really needed?
16) Are existing supplies or inventories reviewed to assure that requested items are not
already available?
17) Are there formal procurement procedures to assure that equipment, material, and supplies
are obtained on a competitive basis?
18) Are there procedures to assure that the type of contract utilized is appropriate for the
procurement being undertaken?
19) Are there controls to assure that types of contracts unacceptable to the Federal
Government are not utilized?
20) Are Minority and Women Owned Businesses included in solicitations?
21) Are solicitations obtained from several sources to assure that the most qualified party is
selected?
-------
Obligations
22) Are quotations reviewed to assure thai the proposed price is reasonable to the contractor,
the recipient, and EPA?
23) Are internal controls utilized to assure that contracts contain all required clauses:
a) access to records
b) ownership of data
c) termination
d) applicable cost principles
e) defective pricing
24) Are there procedures to assure that reported obligations are supported by purchase orders,
contracts, etc.?
25) Do these procedures require that obligations are periodically reviewed with regard to their
validity?
26) Do these procedures require the timely liquidations of obligations?
Indirect Costs
If indirect costs are claimed under this agreement:
27) If the indirect cost rate is negotiated with a Federal Agency, a copy of the negotiated
agreement must be sent to Grants Administration Unit.
Current rate proposal has been approved pending .
28) If the indirect cost rate is not negotiated with a Federal agency:
a) Is there a cost allocation plan to indicate which costs are considered direct costs as
opposed to indirect costs?
b) Are unallowable costs separately identified and/or excluded from the indirect cost
proposal?
c) Are items of the same nature which are charged as direct costs excluded from the
indirect cost proposal?
d) Are indirect costs accumulated in more than one pool?
A copy of the cost allocation plan may be requested.
1 certify that the answers to these questions accurately reflect the management systems.
Signature Date
-------
Timesheets
Example Tribe Environmental Protection
Program
Employee:
I.D. No.:
Department:
Primary Program:
Program/Activity
106WQ
Air Pollution
GAP
Pesticides
Non-federal activity 1
Non-federal activity 2
Indirect activity
Total Regular
Annual
Sick
Comp
Holiday
Admin
School Act.
LWOP
Sun
11/9
0
Mon
11/1
0
5
3
8
Tue
11/1
1
8
8
Wed
11/12
8
8
Thu
11/
13
6
2
8
Fri
11/
14
8
8
Sat
11/
15
0
Sun
11/
16
0
Mon
11/1
7
0
8
Tue
11/1
8
5
3
8
Pay
Period:
Beginning
Date:
Ending
Date:
11 /09/
08
11 1221
08
Wed
11/1
9
8
8
Thu
11/2
0
8
8
Fri
11/21
8
8
(input beginning
date)
Sat
11/
22
0
Tota
I
Hou
rs
48
18
0
0
6
0
0
0
72
0
8
0
0
0
0
0
Payroll
Allocati
on %
67%
25%
0%
0%
8%
0%
0%
0%
100%
£ <°
iese hours are
ocated based (
ocation of regu
urs.
l— ro ro .c
Last Updated September 2013
EPA Tribal, U.S. Territories and Insular Areas Administrative and Financial Guidance for Assistance Agreements
page 365 of 519
-------
Begin Balance
Hours Earned
Hours Available
Hours Used
Ending Balance
Ann
ual
0
0
Sick
0
0
Com
P
0
0
I certify that the time distribution presented above is a true
and accurate accounting of activities/programs I worked
during the pay period.
Employee
Date
Supervisor
Date
Last Updated September 2013
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Trip Request
Tribe Name: -GAP Staff
AUTHORIZATION FOR OFFICIAL TRAVEL SSN
TRAVELER'S NAME: Home DATE: [Today's
Phone: Date]
TRAVELER'S ADDRESS:
TRAVELER'S
POSITION:
Work TA
Phone:
PROGRAM PO
PURPOSE OF TRAVEL:
TRAVELING FROM:
TRAVELING FROM:
TRAVELING FROM:
TRAVELING FROM:
TRAVELING FROM:
TO
TO
TO
TO
TO
Date
Date
Date
Date
Date
Full Per Diem-YES/NO OR Meals Only - YES / NO
I request hotel/motel reservations - yes / noto be made at Phone#
Lodging
Nights X (City State) Fed Rate of per day = $_
Meals & Incidentals
Days X (City State) Fed Rate of per day = $_
DEPARTMENT MUST HAVE ALL PROPER APPROVALS BEFORE SUBMITTING TO THE TRAVEL COORDINATOR
CAR RENTAL? YES / NO EXCESS BAGGAGE? YES / NO
Administrator or President Initials Administrator or President Initials
REQUESTED BY: Date:
APPROVED BY: ADMINISTRATOR Date:
APPROVED BY: PRESIDENT Date:
APPROVED BY: Date:
Tribal Council Member (Optional)
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Trip Report
Tribe Name:
Name:
TRIP REPORT CLOSEOUT - Page 1
Position:
- GAP Staff
Mailing Address:
City/Village:
State:
Phone Number:
Zip Code:
Fax Number:
Did your travel arrangements or dates of travel change?
[Trip Change? Yes or No]
Describe the change:
Final Travel Itinerary (as actually traveled)
Date
From
To
Depart Time
Arrived Time
Airline/Carrier
Taxi Itinerary & Expense
Amount (If $15+ attach receipts)
From
To
ACCOUNTING USE ONLY (COMPLETE BACK OF FORM)
TAXI & PARKING TOTAL EXPENSES
TELEPHONE EXPENSES
OTHER APPROVED EXPENSES
Date
Nights Total
Max Fed per
diem for lodging
Total days per diem allowed this
trip: 7
Actual cost of
lodging
Lodging
Shortfall
Taxi, Parking,
Telephone
Total Hotel
Totals
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Seven Expense
(City, State) Fed Per Diem Rate
Total Taxi, Parking,
Telephone
Max Lodging: Total Allowed Meals & Incidentals
Meals: Total Cost of Trip
Incidentals: Amount
Advanced
Total $ per day Balance Due to
Traveler
Tribe Name: Nelson Lagoon Tribal Council - GAP Staff
TRIP REPORT CLOSEOUT - Page 2
Required Documentation Check List
i AIRLINE TICKET RECEIPT
i HOTEL RECEIPTS
T MEETING AGENDA
i TAXI & PARKING RECEIPTS FOR $15 +
i CAR RENTAL RECEIPTS (APPROVED IN ADVANCE)
i EXCESS BAGGAGE RECEIPTS (APPROVED IN ADVANCE)
Please attach all applicable receipt items to this trip report. Non-documented expenses will not be reimbursed.
PURPOSE OF TRIP:
DATES OF MEETING, TRAINING, WORKSHOP, ETC
Do you feel this trip was beneficial to the organization? [ ] Yes [ ] No
Primary Contacts:
Did you encounter any [ ] No [ ] Yes - Please Explain
problems?
Summary of trip:
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/ understand that once travel is completed a trip report closeout is due to Accounting within seven days. Travel
advances shall be treated as payroll advances and if a trip report is not submitted after seven days after traveling,
the amount advanced will be deducted from my paycheck or direct deposit. I hereby certify that the information
provided is true and correct to the best of my knowledge. I understand that travel expenses are regulated by IRS and
I maybe required to obtain additional information supporting the expenses claimed.
Signature of Traveler Date Administrator or President Date
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This document is provided by Aleutian/Pribilof Islands Association Inc. as an example of policies and
procedures for management of federal grants, such as EPA assistance agreement awards.
ALEUTIAN/PRIBILOF ISLANDS ASSOCIA TION INC.
TRIBAL OFFICE MANAGEMENT AND ADMINISTRATION MANUAL
This document is written for the purpose of providing a set of standard operating policies
and procedures to be used as a guide by administrative staff and the Council. It is also intended to
clarify roles and responsibilities between administrative staff, as well as between staff and the
Council. While providing guidance, this document is not however, intended to be legally binding or
to in any way restrict the Council from carrying out its constitutional duties as the elected governing
body of the Native Village of TRIBE. Nor is this document intended to replace or take precedence
over any provisions of the Native Village Government (NVG) Personnel Policies Manual. If a conflict
should arise between the NVG Personnel Policy and this document, the NVG Personnel Policies shall
take precedence. The Council remains free to exercise its discretion as to the interpretation or
implementation of the policies and procedures set forth, and to revise this document as necessary
to ensure the efficient and effective operation of its governmental functions, programs, and
services.
This manual is brought to you, graciously funded by an Environmental Protection Agency
GAP Grant, to help Tribes build administrative and grant management department capacity
throughout the region.
A/PIA's Community Services Department, and in particular, Klaudia Klaudi, and Kathy
Lawrence were instrumental in developing this manual. We think this information will be beneficial
to all and hope that this manual will help Tribes to have continued success in the management of
state and federal grants.
A special thank you to Dan Duame, for his valuable input and additions for this manual. And
thank you to Bristol Bay Native Association for contributions from their Office Handbook, to Delores
Kochuten of Belkofski Tribal Environment Department, and to Justine Gunderson with Nelson
Lagoon Tribal Council for their valuable input as well.
If you have any questions or would like information concerning training, please contact
Klaudia Klaudi (email address klaudiak@apiai.org ) or call at (907) 276-2700.
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About this manual
Alaska Tribes are faced with many unique and complex challenges today. Many of these
challenges are centered on the lack of training opportunities available in the rural setting. With state
and federal funding requirements becoming more complex, Tribes are increasingly in need of
assistance to navigate these regulations in a timely and professional manner.
In 2002 Aleutian/Pribilof Islands Association (APIA), with funding from the Environmental
Protection Agency (EPA), identified this need and in an attempt to meet that need developed the
Tribal Office Management and Administration Manual. This manual was designed for the purpose
of providing a set of standard operations policies and procedures to be used as a guide by
administrative staff, as well as between staff and the Council. While providing guidance, this
document in not however, intended to be legally binding or to in any way restrict the Council from
carrying out its constitutional duties as the elected governing body of the Native Village of TRIBE.
Nor is this document intended to replace or take precedence over any provisions of the Native
Village Government (NVG) Personnel Policies Manual. If a conflict should arise between the NVG
Personnel Policy and this document, the NVG Personnel Policies shall take precedence. The Council
remains free to exercise its discretion as to the interpretation or implementation of the policies and
procedures set forth, and to revise this document as necessary to ensure the efficient and effective
operation of its governmental functions, programs, and services.
Included in this manual are samples of policies, procedures, and forms that are often used in
Tribal offices. A disc is included that contains templates for all policies and procedures included in
the manual. If you have any questions or would like information concerning training, please contact
Klaudia Klaudi (email address klaudiak@apiai.org) or call APIA at (907) 276-2700.
Acknowledgements
APIA would like to thank all those who have contributed to the creation of this manual, especially
the Environmental Protection Agency GAP Grant Program that funded this manual and supports
training that builds administrative and grant management capacity in the Tribes of Alaska. A special
thanks to the APIA staff, Dan Duame, Klaudia Klaudi, and Kathy Lawrence, who were instrumental in
developing this manual. Finally, thanks to Bristol Bay Native Association for contributions from their
Office Handbook. APIA hopes that this information is beneficial and that it will help Tribes to have
continued success in the management of state and federal grants.
Manual and File Divisions
Administrative
Financial
Personnel
Personnel Forr
Tribal Records
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ADMINISTRATIVE POLICIES AND PROCEDURES: Table of Contents
REVISED 03/29/06
r ADMINISTRATIVE POLICY AND PROCEDURE |
ARTICLE I PURPOSE Page 1
ARTICLE II COUNCIL -STAFF COMUNICATIONS Page 1
Section 1.00 General Statement of Policy Page 1
Section 1.05 Basic Council, FO & GM Roles Page 2
And Responsibilities
ARTICLE III DELEGATION OF AUTHORITY Page 4
Section 2.00 General Manager Delegation Page 4
Section 2.05 Finance Officer (FO) Delegations Page 4
Section 2.10 Appointment of Acting Personnel Page 4
ARTICLE IV SPECIFIC IRA COUNCIL PROVISIONS Page 5
Section 3.00 Special Meetings Page 5
Section 3.05 Regular Council Meetings Page 5
Section 3.10 Stipend / Honorarium Policy Page 5
ARTICLE V ELECTRONIC COMMUNICATIONS POLICIES Page 6
Section 4.00 Internet / Email Page 6
Section 5.00 Services Requests Page 6
ARTICLE VI MISCELLANEOUS ADMINISTRATIVE PROVISIONS Page 6
To be added as necessary
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NATIVE VILLAGE OF TRIBE
ADMINISTRATIVE POLICIES AND PROCEDURES
(Includes revisions as of: 10/5/03)
Article I. Purpose
This document is written for the purpose of providing a set of standard operating policies and
procedures to be used a guide by administrative staff and the Council. It is also intended to clarify
roles and responsibilities between administrative staff, as well as between staff and the Council.
While providing guidance, this document is not however, intended to be legally binding or to in any
way restrict the Council from carrying out its constitutional duties as the elected governing body of
the Native Village of TRIBE. Nor is this document intended to replace or take precedence over any
provisions of the Native Village Government (NVG) Personnel Policies Manual. If a conflict should
arise between the NVG Personnel Policy and this document, the NVG Personnel Policies shall take
precedence. The Council remains free to exercise its discretion as to the interpretation or
implementation of the policies and procedures set forth below, and to revise this document as
necessary to ensure the efficient and effective operation of its governmental functions, programs,
and services.
Article II. Council - Staff Communications
Section 1.00 General Statement of Policy
To promote a professional working environment for staff and the Council, it is the policy of
TRIBE to maintain and respect proper "chain-of-command" in terms of staff to staff and staff to
Council communications. This means that all direct communications with the Council should
generally be made by staff through the General Manager (GM) or Administrator. The exception to
this may be those communications between the Financial Officer (FO) and the Council President or
the Council as a whole sitting in an official meeting, where the FO has been delegated certain duties
and responsibilities that require such direct communications, or where the Council has asked to
speak with, or receive reports from other particular staff at official meetings. Individual Council
members other than the President should refrain from direct communications with staff. Where
the President has a need to communicate to staff directly such communications should be made
through the General Manager or Administrator where possible, or where not possible or practical,
the General Manager should be informed of such communications after the fact. This policy is
intended to apply to substantive, business related communications and not merely incidental
conversations or communications on a personal level.
Section 1.05 Basic Council, Administrative, & Bookkeeping Roles & Responsibilities
1. General Statement of Policy. It is critical to the successful functioning of the tribal
government that there be clear lines of authority and a clear understanding of the roles and
responsibilities of, and the relationship between, the Council and the Administrator, (Tribal
Councils generally employ a lead Administrative staff person) and Bookkeeper.
2. Council. As elected governmental officials, a primary function of the Council is to set all
overall operational policy for TRIBE operations and governmental functions. This includes
administrative, financial, and programmatic policies. Only "elected officials" will serve as the
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Authorized Representatives for federal grants, the Administrator, or Bookkeeper to serve as
financial representative, and the Administrator or Grant Manager to serve as Program
Manager for federal grants. It is also the Council's function to set overall organizational goals
and objectives. It is the policy of the Council to allow staff a high level of flexibility and
operational authority in regards to Council policy implementation, and for the Council to
refrain from direct involvement in most of the day-to-day operations. It is understood
however, that Council will be called upon to address important operational issues from time
to time. As a rule, however, it is TRIBE policy to place great reliance on the Administrator to
run TRIBE operations and to use his/her discretion as to which issues should be elevated for
Council consideration and/or action.
3. Administrators. Have a primary responsibility to carry out and implement established
Council policies, goals and objectives on a day-to-day basis, and to ensure that, under the
direct supervision of the President, that the TRIBE administrative and financial functions are
operated in the most efficient and effective manner possible. Specific duties and
responsibilities include:
a. Direct supervisory line authority over all other employees who are not otherwise
under the supervision of a program director or coordinator.
b. Overall responsibility to ensure that all programs and services are delivered in
accordance with grant and contract requirements, including compliance with all
grant and contract reporting requirements
c. Ensuring that all grant and contract funding awards are drawn down or collected in
a timely manner
d. Ensuring that the annual budget approved by the Council is implemented or
expended within approved amounts
e. Signing off on all check requests
f. Acting as an ex officio (non-voting) member of the Council, taking the lead in
preparing the agenda for all regular Council meetings, in consultation with the
President.
4. Bookkeeper/Accountant. (In some instances Tribal Government will employ a Bookkeeper,
Accountant, or Clerk). Under the overall general direction of the Administrator, the
Bookkeeper is responsible for the maintenance of an overall TRIBE financial system, which
meets all Generally Accepted Accounting Principles (also known as "GAAP standards").
Those having staff that are closely tracking grants should refer to the Office of Management
and Budget (OMB) circular requirements. Additional duties include:
a. Primarily responsible for PO's
b. Performing the actual draw down of funds for all grant awards
c. Preparation of all grant and contract financial reports in a timely manner
d. Primary responsibility, in consultation with the Administrator, for the coordination
and completion of the annual organization-wide audit
e. Primary responsibility, in consultation with the Administrator, for the coordination
and completion of the annual indirect cost proposal
f. Proper accounting of all funds received and expended by TRIBE
g. Ensuring that monthly financial statements are prepared for use and review by the
Administrator and the Council
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h. Ensuring that all expenditures are made within approved budgetary line item
amounts and within the terms and conditions of all contract and grant awards
within Council approved budget limitations
i. Signing off on all expenditure check requests (which signatory authority may not be
withheld where approved funds are available and a determination has been made
by Administrator), that the expenditure is allowable
Article III. Delegation of Authorities
Section 2.00 General Manager Delegations.
As indicated above, the GM is intended to be in charge of the overall TRIBE day to day governmental
operations and has supervisory authority over all other staff. As such, the Council hereby delegates
to the GM the following: (a) check signing authority; (b) in consultation with direct supervisors
where appropriate, responsibility to recommend the hiring and firing of all TRIBE staff, with final
action to be approved by the Council; (c) in consultation with direct supervisors where appropriate,
responsibility to recommend salary levels and merit increases (i.e. raises) of all TRIBE staff, with final
action to be approved by the Council; (d) making line item budget modifications within Council
approved program budgets up to a limit of $3,000 per single line item adjustment (line item
adjustments in excess of $3,000 will require Council approval and signature by the President); and
(6) making program to program budget modifications of $500 or less (with those over $500
requiring council approval). (Note: All hire and fire decisions remain subject to all provisions of the
Personnel Policies, including Council review through the appeal process).
Section 2.05 Finance Officer (FO) Delegations.
The FO is responsible for maintaining the overall accounting and finance system for the
TRIBE. To fulfill these duties and responsibilities it is necessary that the Council delegate to the FO
the following authority: (a) responsibility for the overall policies, procedures, and design of the
accounting and financial reporting system; (b) joint approval authority with the GM over all
expenditures of TRIBE funds; (c) responsibility to review all budget modifications.
Section 2.10 Appointment of Acting Personnel
The GM and FO are both delegated full authority to appoint individuals to "Act" in their
stead when either is unable to attend to their respective duties and responsibilities. It is the
responsibility of both the GM and FO to ensure coverage of all required and necessary
administrative and management functions during any extended absence from the office.
Article IV. Specific IRA Council Provisions
Section 3.00 Special Meetings.
It is the policy of TRIBE to conduct its business to the greatest extent possible through
monthly Council meetings. The GM is expected to carry on the day to day business between meeting
and only call for special meetings in exceptional circumstances where business cannot be postponed
until the next regularly scheduled meeting.
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Section 3.05 Regular Council Meetings.
The agenda shall be prepared by the GM and presented to the President for review and
comment prior to the meeting. The GM shall work with staff to ensure that all reports normally
presented at the regularly scheduled Council meetings are prepared at least 2 days in advance of the
meeting. All efforts should be made to ensure that the final meeting packets are made available to
Council members upon request the day prior to the meeting.
Section 3.10 Stipend/Honorarium Policy
Provided that funding is available, Council members shall be entitled to meeting stipends for
all regular meetings and special Council meetings. Council members who attend outside board,
commission or other similar meetings, or have otherwise been appointed to represent the TRIBE in
an official capacity may receive an honorarium or stipend for their service, provided that the
sponsoring entity does not provide any similar payment and provided that the Council has
specifically approved the appointment as eligible for such stipend or honorarium, including specific
amount of the payment. The GM shall keep a log of all appointments for which stipends of
honorariums have been approved and the amounts of such payments authorized. The council shall
review and update the list on an annual basis.
Article V. Electronic Communication Policies Subject
Section 4.00 Internet/email
Internet/email services is a privilege and is provided to staff primarily for business use.
Employees that are utilizing internet services that charge by the minute are required to log time
spent when such time exceeds 10 minutes for any single use, and turn such logs in to the GM at the
end of each day. Personal use of NVG Internet/email is prohibited during work hours, with the
exception that employees may use their work station Internet/email access during regularly
scheduled break times provided that the service has free access and does not charge by the minute,
or provided that the employees log all time spent and provides accounting with the specific log on-
log off details of time spent. Employees who wish to use Internet services will be required to sign an
authorization which binds them to compliance with this policy and which authorizes automatic
payroll deductions for Internet charges uncured by NVG on their behalf. The General Manager shall
be required to keep a log of all employee passwords, if any, to ensure that NVG administrative staff
have full access to all electronic files stored on NVG equipment. All electronic files stored on NVG
equipment is the property of NVG and NVG retains the right to access such information at any time
for any purpose.
Section 5.00 Service Requests
All requests for new or existing telephone or Internet service are to be made through the
GM. The secretary shall process such requests after receiving written authorization from the GM.
Requests for service to the phone company made by anyone other than the GM or Secretary will be
ignored and result in disciplinary action against the employee making the independent request.
Article VI. Miscellaneous Administrative Provisions
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SAMPLE GENERAL ASSISTANCE PROGRAM (GAP) MANAGEMENT:
Table of Contents
1. Purpose of the GAP Grant
2. Your Contract File
Managing your Assistance Agreement
What an Award looks like
Record Keeping Requirements
3. Applying for a DUNS Number
4. Payment Information
5. Financial Reporting Requirements
6. GAP Guidelines
7. OMB Information
8. Code of Federal Regulations
9. Documentation of Expenditures & Allowable Costs
10. Contracting Tips
11. Evaluation and Desk Review
Protocol and Sample Questions
12. Audits and the Single Audit Process
13. Audit Forms and instructions
14. Sample Forms for GAP Management
15. Tips for GAP Close-out
16. How to request revisions to your Budget & Work plan
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Survey of Tribal Office Administrative System
1. Is there an Office Policy in place, if so, is it in written form? (Yellow Section)
2. Are important documents stored in labeled file folders?
3. Are files divided into different sections or drawers such as:
a. Tribal Government files,
b. Tribal Enrollment files,
c. Tribal Business Files etc.
4. Does each grant or project have its own file in the Tribal Business files?
5. Are computer manuals and back-up disks easily accessible?
6. Do you have fireproof file cabinets?
(Green Section)
1. Do personnel and/or payroll records support the time and attendance, leave, and earnings
for all employees?
2. Does each current employee have their own personnel file containing? (Blue Section)
a. Job description
b. Authorization to hire
c. Salary scale
d. Reference check
e. Interview questions
f. 1-9
g. W-4
h. Health Questionnaire
i. Drug Free Workplace Policy
j. Payroll Status Form
k. Time Sheets
I. Performance Evaluation
m. Benefit Eligibility
n. Employee Resume, application
(Red Section)
1. Have separate accounting records for different projects or grants been established
independent of the bank reconciliation for the general checking account?
2. Are accounting records subjected to an independent audit at least every two years?
3. Is appropriate documentation maintained to support the costs of:
-------
a. Travel
b. Purchases of supplies, equipment
c. Consultants
d. Other costs
4. Do you reconcile bank statements monthly?
5. Is there documentation to substantiate accounts payable and accounts receivable?
Procurement (Red Section, Page 4)
1. Are forms such as check requests or purchase orders used to assure a financial tracking
ability of items, supplies, and services purchased?
2. Are there formal procurement procedures to assure that equipment, materials, and supplies
are purchased on a competitive basis?
3. Are existing supplies or inventories reviewed to assure that requested items are not already
available?
4. Is there an inventory system in place to account for equipment, materials, and supplies
purchased?
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FINANCIAL MANAGEMENT POLICIES AND PROCEDURES: Table of Content
REVISED 03/29/06
r
FINANCIAL MANAGEMENT POLICIES AND PROCEDURE
Notes for Grantee Procedures and Pre-Awards
Section 1.00 Introduction / Purpose
Section 2.00 Contracted Certified Public Accountant (CPA)
Section 3.00 Consultants
Section 4.00 Cash Receipts & Deposits
Section 5.00 Computerized Check Register
Section 6.00 Check Writing and Supporting Documentation
Section 7.00 Purchasing
• Documentation of Expenditures between 6 and 7
Section 8.00 Inventory / Property Management
Section 9.00 Payroll Preparation
Section 10.00 Bingo / Pull Tabs
Section 11.00 Budgeting Process Program Reporting
Section 12.00 Financial Reports
Section 13.00 Reporting Requirements
Section 14.00 Audits
Section 15.00 Tax Reports
Section 16.00 Indirect Cost Recovery Policies
Section 17.00 Petty Cash
Section 18.00 Travel
Section 19.00 Retention of Records
Pagel
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Page 2
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Pages 3
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Page 4
Page 7
PageS
Page 9
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Page 11
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NATIVE VILLAGE OF TRIBE IRA COUNCIL
FINANCIAL MANAGEMENT POLICIES AND PROCEDURES
Section 1.00 Introduction / Purpose.
The following policies and procedures provide a framework and structure as to how the
TRIBE financial accounting system will be managed and operated. The objective of this system is to
provide management with reasonable, but not absolute assurances that assets are safeguarded
against loss from unauthorized use or disposition; that TRIBE is managing its state and federal
programs in compliance with laws and regulations; transactions are executed in accordance with
management's authorization and recorded properly to permit the preparation of financial
statements in accordance with generally accepted accounting principles. The system will also
provide management and the IRA Council the data necessary to maximize the beneficial use
financial resources available.
It is understood that the efficient operation of the system will require some degree of
flexibility, and that the system will evolve and change over time. However, absent modifications
which have been approved by the Council, these policies and procedures are to be complied with by
all staff whose duties or responsibilities fall within their scope. As a general rule, it is anticipated that
the GM will have authority to exercise his/her discretion to make minor modifications to the system,
but that any major substantive changes will be approved by the Council prior to implementation.
The GM shall also have discretion to delegate duties or responsibilities to the Finance Officer (FO) or
other staff as he/she deems necessary and appropriate.
Section 2.00 Contracted Certified Public Accountant (CPA).
The contracted CPA reviews the monthly financial statements from a working disk sent from
TRIBE by the Finance Officer. Appropriate month end journal entries are then prepared and faxed to
the Finance Officer for entry. Ideally this is completed prior to the monthly Council meeting.
Additional assistance is provided as needed.
Section 3.00 Consultants.
Consultants may be used to provide specialized and expert services beyond the scope of
available IRA staff resources when it becomes apparent that their expertise is essential to the well
being of organization. When obtaining the services of consultants the purchasing provisions
provided below shall generally be followed. The consultant's fee must be appropriate considering
the qualifications of the consultant, the consultant's normal fees, and the nature of the services
rendered by the consultant. Cost is not the deciding factor, but rather one of several, such as
quality, timeliness, location, previous experience, etc.
Section 4.00 Cash Receipts & Deposits.
(A) IRA.
Drawdowns for grants are direct deposited into the IRA bank account. The Finance Officer records
the deposits when it comes to her attention that a deposit has been made.
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All other cash receipts are received, deposited, and recorded by the Finance Officer. Usually for
internal control purposes these duties would be split between three people (separation of duties). It
is recommended that a receipt book in triplicate be obtained and a receipt written out for each item
that is to be deposited. The payee gets the top copy, the second copy would be attached to the
deposit slip and check copies, and the third copy would stay in the receipt book until it is completed,
at which time it would be filed. Only one cash receipt book should be in use and in the office at any
given time. The Finance Officer would prepare the deposit slip and with checks attached have the
General Manager count and sign off on the cash receipts. The Finance Officer then makes copies of
the deposit and checks (cash is changed into checks - same as above), sends, and records the
deposit.
(A) Bingo.
All money received by Bingo is counted by two people, recorded daily on a cash receipts sheet, and
then initialed by the counters. The money is then placed in a bank bag and put in a safe or locked file
cabinet, along with a copy of the count sheet.
Deposits should be made once a week, generally on Thursday. A deposit slip is filled out and cash is
changed at the store for a check or at the post office for a money order to deposit. A copy of the
count sheets and check(s) are attached to a copy of the deposit slip before sending. The Finance
Officer records the deposit, and files the copy in the Bingo bank account folder.
Section 5.00 Computerized Check Register.
The check register is maintained by the Finance Officer using QuickBooks Pro. Each check is entered
into the computerized accounting system following standard recording procedures to include date,
payee, check number, accounting code and program, and the amount debited or credited. All
deposits are recorded in the computerized accounting system with the appropriate accounting code
using the approved chart of accounts.
A running balance is maintained in the computerized accounting system. The computerized check
register is used to reconcile the bank statements for each bank account monthly. The contract CPA
reviews the check register and reconciliation's monthly.
Section 6.00 Check Writing and Supporting Documentation
Upon authorization by the General Manager by use of approved check requests, the Finance Officer
prepares checks to pay expenditures. All expenditures of approved budgets are coded using the
Chart of Accounts (attached).
For all checks with supporting documentation, the documentation (check request, invoices,
statements, receipts) must accompany the check before the check is signed. Checks with supporting
documentation attached are then presented by the Finance Officer to the authorized check signers.
Check signers for the Bingo and IRA accounts consist of the General Manager and four Council
officers. Each check requires two signatures. General staff are not authorized signers.
The original check and one stub are given to the Payee. Supporting documents for checks written
are attached to the check copy and filed in reverse chronological order in the vendor file.
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If a check is voided, VOID is written across the front of the check and filed in a folder marked
"Voided Checks". The check number is entered in the check register and VOID is written as payee.
All blank payroll and regular checks are to be stored in a locked fireproof filing cabinet. Checks are to
be used in numerical order.
Section 7.00 Purchasing
(A) General Policy.
It is the policy of TRIBE to purchase only those goods and services that are needed and
necessary to support approved business operations and programs and which are considered
necessary and allowable under all grants and contracts which TRIBE may administer. It is
also the policy of TRIBE to maximize program and service delivery by purchasing goods and
services at the lowest possible cost.
(B) Purchasing & Property Management Authority and Responsibility.
Except where specifically restricted by Council action, all final authority and responsibility relating to
requisitioning, procurement and control of goods and services rests with the GM, notwithstanding
the delegation of certain authorities and responsibilities to other staff as identified below.
(C) Method of Purchasing Goods & Services.
All purchases fall within the category of either goods or services. All purchases of goods and services
shall be accompanied by a properly completed check request. In addition to being fully completed
and signed before payment is issued, all check requests shall be accompanied by proper back up
documentation (generally an invoice, receipt, or estimate) which shall be attached to the check
request. For the purchase of professional, consulting or trade services, proper documentation shall
include a properly executed contract agreement.
The check request is completed by the requesting individual and submitted to the General Manager.
The check request is reviewed in reference to the requesting program's budget and expenditures to
date. If the requesting program has adequate funds available for the purchase, the General Manager
will indicate coding and approval by signature on the check request. Upon the General Manager's
review and approval/ disapproval, the check request will be forwarded to the Finance Officer for
completion of purchase process.
(A) Contracting authority.
All contracts or agreements for less than $5,000 and which have been included in an approved
budget line item may be executed by the General Manager. Contracts which exceed $5,000 shall be
executed by the IRA President.
(B) Required Information:
Business payment: All payments to a company or business shall require the following
information to be recorded on the check request prior to payment being made: (1) company
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or business name; (1) copy of business license; (3) tax ID number; and (4) mailing address
and phone number.
Individual Payment: All payments to individuals shall require the following information to
be recorded on the check request prior to payment being made: (1) individuals name; (2)
Social Security number; and (3) mailing address and phone number (if available).
Other Information: All check requests shall also include a description and number of the
item(s) being purchased; the date of the request and the due date for requested payment;
the dollar amount of the purchase and the program and account coding to which the
payment is to be charged. All vendors, subcontractors, contractors, consultants, students,
general assistance recipients, Council members and any others receiving payments should
fill out a W-9 form which should be held on file by the Accounting Department.
(C) Miscellaneous Payments/Employee Reimbursements.
All miscellaneous payments, including payments to reimburse employees for business
expenses made out of personal funds (which should be avoided whenever possible), shall all
require a check request. Employees should be made aware that any unauthorized purchases
made on behalf of the organization are done so at the employee's risk. Any disallowed
purchases will be the responsibility of the employee.
(D) Competitive Bidding Requirements.
(1) General Policy. Except as allowed below by subsection B (Sole Source Buying), it
shall be the policy of TRIBE to maximize the use of funds through a competitive
bidding process for all purchases, according to the following criteria:
Purchases with costs less than $1000:
• No competitive bids required (unless required by funding source)
• Approval by Program Coordinator/Director, GM, and FO if included in
approved budget line item. (No approval by President required.)
Purchase with costs exceeding $1000 but less than $5,000:
• Verbal price quotes from two or more vendors (recorded in writing
and attached to the check request)
• Approval by Program Coordinator/Director, FO, and GM if included
in approved budget line item. (No approval by President required.)
Purchase with costs exceeding $5,000:
• Three written formal bids (with selected bid attached to the check
request).
• Approval by Program Coordinator/Director, FO, GM & President.
(H) Sole Source Purchasing. Sole source purchasing is allowed when it has been determined that
only one product/service is available of that particular make or design, or a service provider
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has a unique ability to provide a needed product or service. Poor timing is not a legitimate
reason for claiming a need for a sole source purchase. The requesting program or individual
is responsible for justifying, in writing that a product/service must be purchased from a sole
source. The GM shall approve/disapprove the request for the purchase, and if approved, the
approval shall be attached to the check request as part of the permanent record of the
purchase.
(I) Bid Award Policy.
The following factors, applied in combination, will be considered in reviewing bids and
awarding contracts or making purchase decisions:
• Price
• Bidders previous record of performance and service for outside entities
• Bidders previous record of performance and service for TRIBE
• Quality and conformance to specifications of RFP
• Alaska Native owned / operated business or producer of required product
Section 8.00 Inventory / Property Management
(A) General Policy.
TRIBE keeps an inventory list of equipment with a value of $5,000 or more or a useful life of one
year or more. The information includes the item, date of purchase, value, and funds used. It is
updated every time a new item is purchased. When equipment is disposed of, the date is noted on
the list and this information may be given to the auditors so they can update their depreciation or
use schedule (if any).
(A) Inventory Control - General Responsibility.
Responsibility for maintaining an inventory control system shall rest with the Accounting
Department. The inventory control system will enable TRIBE to verify actual physical inventories
against book inventories. As part of this system, all TRIBE equipment, furniture, and hard supplies
with an expected life span of one (1) year or more shall be labeled and recorded in the inventory
system. A complete organizational inventory shall be conducted at least annually, the results of
which shall be reconciled to the property records.
(B) Surplus Property.
All departments and program coordinators are responsible for reporting surplus or excess property
to the FO. Once surplus property has been identified, the FO will proceed to dispose of such
property under the guidelines provided below in subsection (E).
(C) Property Disposal.
(1) Property disposal decisions are made through several methods. These include:
• A date decided upon at the time the property was acquired;
• Based upon condition and other factors noted in annual inventory reports;
• When property is deemed by the FO in consultation with the GM to be
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obsolete;
• When maintenance is no longer cost efficient;
• If the intended use is no longer valid and there is no other application for
other TRIBE programs.
1. It is the policy of TRIBE to make every effort to donate equipment or other property
that has been deemed by the FO, in consultation with the GM to be surplus to the needs of
TRIBE program operations. Such property shall be made available first to other TRIBE based
organizations, and in the event that such equipment cannot be donated, will be made
available to staff on a lottery basis. The FO and GM may establish a fair market value for
items of significant value. Where a price has been placed on the property the payment shall
be made by the recipient before the property is turned over and the funds generated
deposited into the TRIBE General Fund. In the event that staff do not request such property,
it may be made available to the general public by lottery, sealed bid or such other method
as the FO and GM may determine is appropriate. With concurrence by the President, such
property may be donated directly to a worthy tribal member with a demonstrated need.
Electronic equipment deemed surplus will have all TRIBE data removed or deleted prior to
disposal. All property will be offered as-is with no express or implied warranty or technical
assistance as to use or set-up. In disposing of property, the FO shall be responsible for
ensuring that all federal, state, or other contract and grant requirements are complied with.
(D) Lost or stolen Items. All lost or stolen items should be reported to the GM & FO by
employees immediately upon becoming aware of such loss or theft. The employee reporting
such loss or theft shall provide a short memo explaining the circumstances of the lost of
stolen property to the best of their knowledge and belief. Upon notification the FO shall
take such action as is necessary to account for the missing property, including the
adjustment of the property inventory and, if appropriate, the reporting of such loss or theft
to the police or agency or entity which provided the funds to purchase the property.
Section 9.00 Payroll Preparation
Pay periods are bi-weekly for all employees, except Bingo floor workers, who shall be paid weekly.
Employees must sign and date their own timesheets (or time cards). Time sheets must include the
employee's name, position, hours and dates worked. All personal leave, overtime and holiday pay is
included on the time sheet. Timesheets are then checked, approved and signed by the FO & GM, or
in the absence of the General Manager or a person acting in his/her behalf, the President, or other
Council officer.
Leave slips are signed by the employee's immediate supervisor or General Manager and given to the
Finance Officer.
All employees must complete a W-4 and 1-9 form at the time of hire. When an employee has a
change in job position or pay rate, a payroll authorization form needs to be completed by their
supervisor or the General Manager. These forms are filed in the employee's individual payroll record
by the Finance Officer.
The Finance Officer is responsible for making timely federal tax deposits after each payroll.
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Section 10 Bingo/ Pull Tabs.
(A) General Policy.
All gaming activities shall be conducted under the overall supervision of the GM. A Bingo
Manager (supervised by the GM) shall be in charge of the day to day gaming operations and
shall be responsible for preparing a monthly written gaming report for the Council.
(B) Distribution of Gaming Net Proceeds (Donations).
The Council shall be responsible for establishing overall policies and guidelines on the
donation of net gaming proceeds, including actual award / donation limits or amounts. Once
established, the policy may be implemented by the GM.
Section 11.00 Budgeting Process Program Reporting
(A) General Statement of Policy Objectives.
It is the policy of TRIBE to expend program and service funding only upon securing Council
approved budgets, and within approved budget limitation. Deficit spending is strongly
discouraged. Grant, contract, or bingo expenses may not be incurred until an official award
has been made and the funds either received, or an alternate source of reimbursable
funding has been approved by the Council.
(B) Timelines.
Budgets for programs and services that are provided on the calendar fiscal year (particularly
BIA Compact programs) should be approved no later than the December Council meeting of
each year, and ideally, no later than November.
(C) Budgeting Process Roles and Responsibilities.
(1) Council: It is the responsibility of the Council to approve on an annual basis all
program and service budgets for both Compact and non-Compact programs. The
Council shall also approve budgets for any new contracts or grants added during the
year and all budget modifications that exceed $3,000 per single line item
adjustment or as otherwise required by specific grant or contract terms and
conditions.
(2) General Manager: The GM has the primary responsibility, and the FO secondary
responsibility to ensure that all expenditures occur only after a program or project
has an approved budget. It is also the responsibility of the GM to review financial
reports produced by the FO on a monthly basis to ensure that budget modifications
are proposed and put into effect as expeditiously as possible to prevent deficit
spending. This requires the GM to project recurring program expenses and work
with program directors and coordinators to ensure budget modifications are
processed in a timely manner.
(3) Finance Office: The FO has the responsibility to review and approve (i.e., sign off
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on) all initial budgets and budget modifications. The FO also has the responsibility to
review and sign off on all Check Requests to ensure program line items have
sufficient funds to cover requested expenditures and that proposed expenses are
coded to the proper account.
(4) Program Directors and Coordinators: Program Directors and Coordinators (where
there is no Director) will be provided with copies of each monthly financial report
for the program(s) for which they have direct service responsibility and shall be
responsible for monitoring their budgets and proposing budget modifications as
necessary to ensure accountability for funds and for the fulfillment of program goals
and objectives. Program staff should also review their budgets at the time each
Check Request is generated to ensure adequate funds in the account to which the
expense is coded. Routine budget modifications should be proposed by the Program
Directors, coordinators and/or GM, and approved and signed off on by the GM and
FO, or where over $3,000, by the President after consultation with the Council.
(5) Reprogramming between approved programs of $500 or less may be approved and
signed off on by the GM. Reprogramming between approved programs of $500 or
more shall require approval by the Council and signature on the budget
modification form by the President.
(B) Staff Program Narrative Reports.
In addition to those reports that may be required as part of the terms and conditions of a
particular grant or contract, the GM may request such narrative program progress reports
as he/she deems is necessary and appropriate for the particular program, or as otherwise
requested by the Council.
Section 12.00 Financial Reports.
Financial reports are printed monthly by the Finance Officer for the IRA Council's monthly meeting,
or as otherwise requested. Program Directors or staff responsible for managing a program budget
will be provided their respective programs budgets on a monthly basis and are responsible for
monitoring expenditures as well as assisting the FO as requested in the preparation of program
financial reports.
Section 13.00 Reporting Requirements.
It is the policy of the management and the IRA Council of the Native Village of TRIBE to comply with
all reporting requirements imposed by funding sources. The General Manager will prepare and send
the appropriate programmatic and fiscal reports to the grantors according to their specified time
requirements (usually quarterly). If the grantor requires that the IRA Council review the report prior
to submission, the General Manager will be responsible to presenting the report to the Board
President for approval prior to submission date.
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Section 14.00 Audits.
Once a year, an independent audit is performed according to the State and Federal Single Audit
requirements. Adjusting entries to TRIBE financial records are made only after they are received in
writing from the auditor. Completed audit reports are submitted to the IRA Council and required
state and federal agencies.
Section 15.00 Tax Reports.
The Finance Officer is responsible for timely filing of the quarterly Federal 941 payroll reports and
State of Alaska Department of Labor reports, along with any payments due. The contract CPA
reviews the quarterly reports prior to submission.
The audit firm prepares the annual 990 form and submits it to the General Manager for signature.
This report is mailed by the required date.
The Bingo quarterly and annual gaming reports are prepared, signed, and mailed by the Bingo
Director. The annual gaming report is reviewed by the contract CPA.
Section 16.00 Indirect Cost Recovery Policies.
(A) Submission of indirect cost proposals: It shall be the policy of TRIBE to submit its annual
indirect cost proposal in a timely manner, with submission no later than sixty (60) days after
the publication of the annual single audit for each calendar year, or July, whichever shall
occur first. Preparation of the proposal shall be considered to be a priority task for both the
GM and the Finance Officer. Outside technical assistance may be retained by the GM as
necessary to complete the proposal.
(B) Recovery / accounting of indirect cost recoveries: It shall be the responsibility of the
FO, working in consultation with the GM, to monitor indirect cost recoveries and to ensure
that indirect (i.e., central administrative) costs are fully recovered in each fiscal year. All
federal, state, private, and tribal sources of funding shall be required to contribute the
required prorata share of costs per the federally negotiated indirect cost rate. No
agreement for any grant, contract, or other funding source that becomes available to TRIBE
but which does not allow for the full recovery of indirect shall be entered into or accepted
by TRIBE until a source of any projected indirect shortfall has clearly been identified and
obligated. Within the limits of any budgetary authority established by the Council, the
Finance Officer shall propose, and the GM approve such reprogramming or budget
modifications as may be necessary to accomplish this objective.
Section 17.00 Petty Cash
The Finance Officer is the custodian of the petty cash box. The amount in petty cash is minimal
(generally not to exceed $100). Money from petty cash is used for office postage and other minor
non-routine expenses. The Finance Officer enters the cash receipts and expenses from petty cash
into the financial records.
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Section 18.00 Travel
A Travel Authorization (TA) must be filled out by all individuals traveling with TRIBE funds to receive
payment for travel and per diem. Airline reservations will be made at the lowest possible fare.
Receipts are required for all reimbursable expenditures.
Per Diem is paid by the full and half day and is intended to cover lodging and meals while on official
TRIBE business. Per Diem amounts are based on federal per diem rates for federal and non-state
programs and state rates for state programs. Any expenses incurred without prior approval may not
be reimbursed; it is solely at the discretion of the General Manager. Expenses other than lodging
and meals may be reimbursed as allowed under federal and state per diem regulations. Such
expenses include lodging taxes, taxi, and parking costs, official phone charges, and laundry. A trip
report should be required reflecting all reimbursable expenses.
Section 19.00 Retention of Records
TRIBE maintains all financial records at least three years. Payroll records are kept for the duration of
an employee's active employment, plus six and a half years after termination. All records are stored
in a secure environment to prevent damage or loss.
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PERSONNEL POLICY AND PROCEDURE: Table of Contents
REVISED 03/29/06
PERSONNEL POLICY & PROCEDURE
ARTICLE 1
Section 1.00
Section 1.05
Section 1.10
Section 1.15
Section 1.20
Section 1.25
Section 1.30
Section 1.35
Section 1.40
STAFFING
Native Preference
Equal Opportunity
Employee Recruitment and Selection
Classification of Employees
Probationary Period
New Employee Orientation
Employee Evaluation
Personnel Files
Nepotism
ARTICLE 11 PERFORMANCE EXPECTATIONS
Section 2.00
Section 2.05
Section 2.10
Section 2.15
Section 2.20
Section 2.25
Section 2.30
Section 2.35
Section 2.40
Section 2.45
Section 2.50
Section 2.55
Section 2.60
Section 2.65
Section 2.70
Section 2.75
Section 2.80
ARTICLE III
Section 3.00
Section 3.05
Section 3. 10
ARTICLE IV
Section 4.00
Standards of Conduct
Working Hours
Rest Periods
Attendance
Drug Free Workplace Requirements
Drug & Alcohol Testing Policy & Procedure
Drug & Substance Abuse Treatment
Personal Issues
Harassment Including Sexual Harassment
Public Information
Confidential Information
Conflicts of Interest
Other Employment
Safety and Security
Advertising
Political Activity
Company Vehicles
COMPUTER / NETWORK USE
Overview
Computer Use Policy
Internet Use Policy
COMPENSATION
Salaries
Pagel
Pagel
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Page 2
Page 3
Page 3
Page 4
Page 4
PageS
PageS
Page 6
Page 6
Page 6
Page 7
PageS
Page 9
Page 9
Page 13
Page 13
Page 13
Page 14
Page 15
Page 15
Page 15
Page 15
Page 15
Page 16
Page 16
Page 16
Page 16
Page 17
Page 17
Page 19
Page 19
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Section 4.05
Section 4.10
Section 4.15
Section 4.20
Section 4.25
Section 4.30
Section 4.35
Section 4.40
ARTICLE V
Section 5.00
Section 5.05
Section 5.10
Section 5.15
Section 5.20
Section 5.25
Section 5.30
Section 5.35
Section 5.40
Section 5.45
Section 5.55
Salary Increases
Salary Reductions
Payroll Deductions
Pay Periods
Pay Advances
Overtime Compensation
Compensatory Time
Errors in Employee's Pay
BENEFITS
Holidays
Personal Leave
Subsistence Leave
Bereavement Leave
Admin Leave
Family and Medical Leave
Jury Duty
Military Leave
Insurance
Pension
Reductions in Benefits
Section 7.00 Suggestions
Section 7.05 [Optional] Employee Personnel Policy Review Committee
Section 7.10 Voluntary Separations
Section 7.15 Post Employment
ARTICLE VIM DISCIPLINE
Section 8.00 Discipline
Section 8.05 Causes of Disciplinary Action
Section 8.10 Disciplinary Procedure
Section 8.15 Appeal for Suspensions/Dismissals
Section 8.20 Grievance Policy
Section 8.25 Grievance Procedure
Section 8.65 Other Personnel Actions
ARTICLE IX
TRAINING AND DEVELOPMENT
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Page 20
Page 20
Page 20
Page 20
Page 20
Page 21
Page 21
Page 21
Page 21
Page 22
Page 23
Page 24
Page 24
Page 24
Page 25
Page 25
Page 25
Page 26
Page 26
ARTICLE VI REIMBURSEMENT FOR EXPENSES Page 26
Section 6.00 Travel, Per Diem Payments/Expenses, General Travel Info Page 26
ARTICLE VII EMPLOYEE RELATIONS Page 27
Section 9.00 School Attendance
Section 9.05 Continuing Education
Page 27
Page 28
Page 28
Page 28
Page 28
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Page 29
Page 31
Page 31
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Page 33
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Section 9.10 Sabbatical Leave Page 34
Section 9.15 Training Positions Page 34
DEFINITIONS Page 34
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Native Village of TRIBE
PERSONNEL POLICIES AND PROCEDURES MANUAL
INTRODUCTION
The policies contained in this manual constitute management guidelines only and are in no way to
be interpreted as a contract, either express or implied, between TRIBE IRA and any of its employees.
TRIBE IRA does not guarantee any minimum length of employment and TRIBE reserves the right to
terminate any employee, at any time, "at will," with or without cause. A supervisor or manager of
the company has no authority whatsoever to make any contrary representations to any employee.
TRIBE IRA reserves the right to modify or delete any of these policies, when, in its opinion, it
becomes advisable to do so. Personnel rules applicable only to particular programs or positions are
provided to the affected employees as appropriate and operate as an addendum to this manual.
While the IRA will normally attempt to provide employees advance notice of any change, it reserves
the right to alter these policies at any time without advance notice. TRIBE IRA will do everything
possible to give a minimum of two weeks' notice in writing on any changes in the personnel policy.
This policy manual supersedes all previous manuals, letters, memorandums, and understandings.
ARTICLE I - STAFFING
Section 1.00 Native Preference
Where required or authorized by law, preference for employment will be given to Alaska Natives
and Native Americans. In accordance with exemptions granted in Title VII of the Civil Rights Act of
1964 as amended and section 7 (b) of Public Law 93-638, the Indian Self-Determination Act as
amended, TRIBE shall to the extent feasible (1) give preference in employment for all work
performed under applicable contracts to qualified Alaska Natives/American Indians regardless of
age, religion or sex; and (2) further extend employment and training opportunities to Alaska
Natives/American Indians that are not fully qualified, regardless of age, religion or sex.
The preference opportunities above shall be implemented to the extent consistent with the efficient
performance of applicable contracts. If TRIBE is unable to fill its employment openings after giving
full consideration to Alaska Natives/American Indians as required in various contracts, employment
openings may be filled by other than Alaska Natives/American Indians under conditions set forth in
the Equal Employment Opportunity Act and section 7(b) of Public Law 93-638.
Section 1.05 Equal Opportunity
With the exceptions outlined in Article I, Section 1.00 as to Native Preference, it is the policy of TRIBE
IRA not to discriminate against any employee or applicant with regard to race, color, religion, marital
status, changes in marital status, pregnancy or parenthood, national origin, sex, age, mental or
physical handicap (except for bona fide occupational qualifications) relating to hiring or terms of
employment.
Any person who alleges an act of discrimination by TRIBE IRA, regarding employment opportunity
with TRIBE IRA may file a written complaint with the General Manager who shall investigate and
resolve the situation through appropriate procedures as set forth in these policies or as otherwise
established by the IRA or law.
Section 1.10 Employee Recruitment and Selection
The General Manager and Finance Officer are selected by and serve solely at the pleasure of the
TRIBE IRA. The TRIBE IRA may terminate them at any time. All other employees are hired or fired by
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the General Manager, in consultation with the President. At the recommendation of the President,
termination decisions may be reviewed by the Council prior to becoming effective.
When a vacancy occurs, the appropriate supervisor will notify the General Manager, who will initiate
the recruitment process. At the discretion of the General Manager, in consultation with the
President, a position may be advertised in house before being advertised outside the organization. If
an employee terminates within six weeks of their date of hire, the position does not have to be re-
advertised. The General Manager has the option of offering employment to another qualified
person on the applicant list or in the "open" file of eligible applicants for TRIBE positions, if one is
maintained.
All applicants for employment at TRIBE are required to fill out a TRIBE employment application form.
All applications, in order to be considered for a particular position, must be received by the closing
date for receipt of applications noted on the recruitment notice. The General Manager may at
his/her discretion advertise any position as "open until filled." Individuals who have an up to date
application on file at TRIBE may request that the application be pulled for consideration for an
upcoming job vacancy by the closing date. Current TRIBE employees, if interested in being
considered for an employment opening, are encouraged to apply. All else being equal, an effort will
be made to promote from within a capable and experienced individual, based on their
demonstrated ability to assume greater responsibility.
Upon selection of an applicant for an open position an appointment letter will be sent that will
include: the employees title; whom the employee will report to; the grade, step and hourly rate of
pay, when and where the first pay check will be available, along with other information the General
Manager deems is relevant to the position. Financial information and forms relating to an
individual's employment status shall be provided to Finance. All personnel information shall be
maintained in individual personnel files by the central Administration.
With authorization from the IRA, the General Manager may hire individuals on an emergency hire
basis for up to a 90-day period without going through a formal recruitment process. If the position is
a regular position expected to last longer than ninety (90) days, the recruitment process will be
conducted during this time. If the individual hired on an emergency basis is interested in being
considered for the position, they will submit their application for consideration with other
applicants.
Section 1.15 Classification of Employees
Employees will be classified in the following manner:
a. Regular full-time: regularly assigned to work 75 hours in each two-week period.
b. Regular part-time: regularly assigned to work less than 75 hours in each two-week period.
c. Regular seasonal full-time: regularly assigned to work 75 hours in each two week period for a
period of three to ten months.
d. Regular seasonal part-time: regularly assigned to work less than 75 hours in each two week
period for a period of three to ten months.
e. Temporary: assigned to work up to 75 hours in each two week period for a set period of time, not
to exceed 1 year. Temporary employees are not eligible to receive TRIBE employee benefits.
Employees shall be further classified as exempt or non-exempt personnel in keeping with Section 13
(a), subsections (a) and (b) of the Fair Labor Standards Act. Exempt and non-exempt positions are
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further defined in the Definitions section, at the end of these policies. Non-exempt employees are
entitled to receive overtime pay for any hours worked in excess of an eight hour day or a forty-hour
workweek.
Section 1.20 Probationary Period
a. Purpose. The probationary period applies to all new employees of TRIBE IRA and provides the
supervisor and the General Manager an opportunity to observe the employee's work, to train and
aid the employee in adjusting to the position, and to dismiss an employee whose work performance
fails to meet required work standards.
b. Duration. Every new Employee of TRIBE IRA shall serve a three (3) month probationary period.
Probationary Employees may take personal leave up to the amount of hours accrued since their
date of hire, only for attending to child or personal illness. Probationary employees may not take
paid personal leave for other purposes. Any additional time taken off from work would be leave
without pay.
c. Dismissal during probationary period. At any time during the initial or extended probationary
period, an employee may be terminated by the General Manager. Termination during the
probationary period shall not be grounds for redress under Article VIII of this manual.
d. Extension of probationary period. If in the opinion of the immediate supervisor, program director
and the General Manager, an employee' probationary period may be extended to provide additional
time for the employee to demonstrate his or her ability to meet required performance levels. The
probationary period may be extended for the employee for up to two additional ninety (90) day
periods. Such extension must be in writing, set forth the reasons for the extension, shall provide
guidelines for improving work performance and will be evaluated by the end of the extended
period. An employee placed on extended probation shall be eligible to participate in TRIBE's
employee benefit programs, and may request, and be authorized to take personal leave.
e. Probationary period following transfers or promotions. Regular employees shall be required to
serve a three (3) month probationary period following a transfer or promotion into a new position.
At the end of the three (3) month period, an evaluation will be conducted to assess the employee's
ability to meet the new position requirements. Transferred or promoted employees continue to
accrue and may utilize their employee benefits during the probationary period.
Section 1.25 New Employee Orientation
Supervisors are responsible for ensuring that new employees receive proper orientation to the
office, to the benefit plans, payroll procedures, any safety measures, and all job duties within the
first two weeks on the job. All new employees must complete an orientation process and certify that
they have received, read, and had the opportunity to ask questions of their supervisor regarding the
various TRIBE policies and procedures which may affect them in their position.
Section 1.30 Employee Evaluation
Supervisors are to complete an initial evaluation of each new, transferred, or promoted employee
just prior to the end of the three (3) month probationary period. If the probationary period is
extended, a second evaluation will be completed at the end of each extension. On the basis of either
the three (3) month or extended evaluation period, a recommendation may be made to transfer the
employee to regular status.
Each regular employee will be evaluated annually on or about their anniversary date of hire. Each
evaluation will be performed by the employee's immediate supervisor and reviewed by the General
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Manager. In addition, interim evaluations may be performed to document substandard or
outstanding performance. The original of each evaluation will be kept in the employee's personnel
file with a copy given to the employee after the supervisor and employee has discussed the
evaluation. The General Manager shall be responsible for establishing and maintaining standardized,
written performance evaluation guidelines which shall be reviewed and utilized by each supervisor
prior to conducting the annual evaluation.
Section 1.35 Personnel Files
Personnel files will be kept in locked file cabinets by the central Administration. Unless otherwise
delegated by the General Manager, only the General Manager and Finance Officer will have access
to personnel files.
Personnel files for each individual employee will be maintained and include at a minimum the
following information: Applications for employment, annual performance reviews, payroll action
notices, tax and other payroll information, personnel actions, commendations, employee of the
month certificates, employee of the year recognition, disciplinary warnings, and educational
attainment records. All information generated by a supervisor or anyone else regarding an
employee, which is placed in the personnel file must be copied to the employee at the time it is
placed in the personnel file.
Contents of personnel files are considered confidential, and may be released to outside parties
(individuals not associated with TRIBE IRA) only with the written authorization of the employee,
appropriate staff or when required by law. Employees have a right to review the contents of their
personnel files but may not remove the file from the office premises. Former employees may
receive copies of their personnel files upon written request but are responsible for paying the
copying expenses.
Each employee is responsible for notifying the Accounting Department in the event of changes in
address, telephone number, and/or family status (births, marriage, death, divorce, etc.).
Section 1.40 Nepotism
No employee may supervise an immediate family member. Immediate family member is defined as
a spouse or significant other (boyfriend, girlfriend, mother, or father of shared children)
grandparents, grandchildren of the employee, parents, children, and siblings of the employee and
their significant other or spouse. Situations where a known close relationship exists will be
evaluated on a case by case basis. Immediate family members of current employees shall not be
hired if the new employee will be supervised by an immediate family member as defined above.
Job promotions which may result in a supervisor-subordinate relationship between immediate
family members shall be considered on the basis of TRIBE's interest. If a close personal relationship
is known to exist, the recommendation for job promotion will be scrutinized. Supervisors may
request a waiver from the IRA of the prohibitions set forth above if no other qualified individual can
be found to adequately fill the position. This waiver should be directed through the appropriate
channels to the General Manager for a decision and then on to the IRA President. The approved
waiver shall be copied to the employee, the employee's personnel file and the employee's
supervisor.
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ARTICLE II - PERFORMANCE EXPECTATIONS
Section 2.00 Standards of Conduct
Employees must conduct themselves in a manner which will maintain respect and dignity while
engaged in official activities both within and outside the organization's facilities. Employees will
apply themselves to their duties during work hours. Interpersonal relationships between staff
members must remain within the bounds of common decency and good taste. Employee conduct
must be consistent with the highest standards of courtesy and professional behavior. If an employee
is unprofessional or in some way causes discredit to TRIBE, the problem shall be documented by the
individual observing the behavior completely and clearly in writing and forwarded to the individual's
supervisor to be resolved. If an employee believes that anyone in or associated with the company
has requested or directed him or her to do anything that violates the law, or has prohibited the
employee from doing anything that the law requires him or her to do, the employee must report
this immediately to his or her immediate supervisor or to the next level, who will report the incident
to the General Manager. Misconduct by the General Manager shall be reported to the IRA President.
Section 2.05 Working Hours
a) The normal work week for a full time regular employee (exempt and non-exempt) will be 37.5
hours consisting of five (5) consecutive work days of 7 Y-i hours each. The consecutive days worked
are normally Monday through Friday, although alternative work weeks may be established for
positions requiring different schedules. The normal work day for full time employees shall be from
8:00 AM to 4:30 PM with a one (1) hour lunch break unless other arrangements are agreed to in
writing in advance by the employee, supervisor and General Manager.
The normal work day for part time employees under 7 1/£ hours, will be agreed upon in writing and
documented on their payroll status sheet and in their personnel file. Employees are expected to
perform their duties during regular assigned work hours if at all possible. Occasionally exempt
employee responsibilities will require them to work outside the normal work day. Some employees,
because of the nature of their work, are required to serve on on-call status outside of normal office
hours. On call status is defined as an employee that has left the corporation's premises and has left
a telephone number to be reached in case of an emergency. If it is necessary for an employee to
attend to an emergency situation while on on-call status, the employee shall be considered to be in
work status from the time the call is received until such time as they are able to return to non-work
activities.
If the employee is non-exempt and works in excess of an eight (8) hour day or a forty (40) hour work
week, they would receive overtime compensation at one and a half times their normal salary for
those hours worked. Meetings directly related to an employee's job and held outside the non-
exempt employee's regular working hours shall be considered "hours worked" if attendance is not n
a voluntary basis. Non-exempt employees are responsible to record on their time sheets actual time
worked, even if it is more or less than the normally scheduled hours. Exempt employees shall only
be required to record their time if mandated by Council action.
If an exempt employee finds it necessary to work over an eight hour day for an extended period of
time, he or she must confer with the General Manager on the nature of the work being performed.
Non-exempt employees are not to work before, beyond, or outside their normal hours and are not
to work overtime unless authorized beforehand in writing by the Supervisor and General Manager.
The General Manager will approve or disapprove any changes to the regular work day.
TRIBE may offer, on a limited basis, a voluntary flexible work hour plan during the summer months.
Employees participating in the plan work three 9 1/£ hours days and one 9 hour day, four days a
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week, from 7:00 a.m. to 5:30/5:00 p.m. with a one hour lunch break. Participation n this plan must
be approved by the employee's immediate supervisor and the General Manager. Participation will
not be approved unless the particular program's staffing needs are met. The applicable time period
in which the flexible work hour plan will be available shall be determined by the General Manager.
Section 2.10 Rest Periods.
Each employee will have two (2) paid fifteen (15) minute rest periods each day; one during the first
four (4) hours and one during the second 3 1/£ hours. The employee's rest period schedule shall be
approved by employee's supervisor to ensure adequate phone and other coverage for the
department. In no case may rest periods be taken at the beginning or end of a shift, nor may rest
periods be consolidated for use on a later date.
Section 2.15 Attendance
All employees must maintain regular work attendance. The normal work day and work week
requirements of these policies apply to all employees, whether exempt or non- exempt. Regular
attendance and timeliness will be among the criteria used to determine eligibility for salary
increases, promotions, and continued employment. Unsatisfactory attendance and tardiness are
grounds for disciplinary action, including termination. Any employee late for the start of the work
day without authorization may be subject to a verbal warning and to progressive discipline for
recurring offenses.
It is the responsibility of the immediate supervisor to monitor attendance and ensure the
employee's time sheet is correct before it is submitted to the accounting office. Non- exempt
employees will be charged personal leave for absences during normal working hours. Exempt
employees will be charged personal leave for absences of one-half day or more. If an employee does
not have sufficient personal leave accrued, or may not take personal leave due to probationary
status, the employee will be charged leave without pay (LWOP) for the time absent; provided
exempt employees will only be charged LWOP for absences of one half day or more.
If an employee will not be able to make it to work or if they will be [15 or 30] minutes or more late
for the start of the work day, they are responsible for contacting their immediate supervisor to let
them know. If their immediate supervisor is not available, the employee shall leave a message with
the main office staff. Unless extraordinary circumstances warrant it, a call from a person other than
the employee, will not be accepted as a notice from the employee for lateness or absence from
work. If an absent employee does not call within two hours after the start of the working day, the
employee will be considered absent without leave unless the supervisor has been previously
informed. Any employee absent without leave three times during a one month period may be
terminated.
Employees must have accrued personal leave and receive approval, to take personal leave in
advance if at all possible. If leave taken is less than 1 working day, note in comment section of time
sheet the reason for absence. If an employee is absent for three or more consecutive days due to
illness or disability, the employee must provide a health practitioner's written statement verifying
the illness or disability. A supervisor may require a health practitioner's verification for absences of
less than three days. If an employee has been ill or disabled, the supervisor may require a written
statement from a health practitioner verifying that the employee is fit to return to work. If it
becomes necessary for an employee to leave the work premises during regular work hours, they
must notify their supervisor prior to departing the premises or at a minimum, notify another
employee of their whereabouts. Any employee who does not report to work for three (3)
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consecutive days without prior notification to the supervisor may be considered to have abandoned
their position, may be terminated and the position opened for immediate recruitment.
Section 2.20 Drug Free Workplace Requirements
TRIBE IRA has a commitment to providing and maintaining a drug-free workplace and has
established the following policy: The unlawful manufacture, distribution, dispensing, possession or
use of a controlled substance is prohibited in any and all TRIBE IRA buildings, offices and other work
areas. Each individual offered employment, prior to being hired by TRIBE, shall certify by signature
their agreement to abide by the TRIBE IRA's Drug Free Workplace Policy as stated above.
If an individual is unwilling to sign such certification, they will not be hired. Any employee found to
be under the influence of alcohol, drugs or controlled substances shall be immediately relieved of
duties and sent home on Leave Without Pay status. Drugs may include inappropriate or unlawful use
of prescription drugs (e.g. "uppers" or "downers".) The supervisor will document the incident in the
employee's personnel file and notify the General Manager. The employee will be subject to
disciplinary action, which may include termination for the first offense. If an employee is lawfully
taking medication which can or does affect his physical or mental abilities, the employee shall notify
his or her supervisor and submit a doctor's statement. If required by a particular funding source,
TRIBE shall notify the funding agency within ten (10) days after receiving notice of any criminal drug
statute conviction for a violation occurring in the workplace. Disciplinary action(s) shall be issued
within 30 days of receiving notice with respect to any employee who is so convicted. TRIBE shall
make a good faith effort to maintain a drug-free workplace through implementation of the fore
mentioned policy statements.
Section 2.25 Drug and Alcohol Testing Policy and Procedure
a) Purpose of the Policy.
TRIBE is committed to maintaining a safe and healthy work environment for employees. TRIBE
employees are responsible for delivering services to tribal members and other residents of the
Bering Straits Region, and are obligated to ensure public safety and trust in our working
environment and scope of services. Accordingly, the use of alcoholic beverages or controlled
substances, including marijuana, amphetamines, barbiturates, heroin, or opium derivatives,
hallucinogens, or other controlled substances prohibited by state or federal law is strictly prohibited.
Positive screening results from an alcohol and/or drug test will result in disciplinary action which
may include termination of employment.
b) Scope.
1) Pre-employment Screening. TRIBE reserves the right to conduct pre-employment drug screening
of any individual who is being considered for regular employment. For this purpose, an individual is
"being considered" for employment when the individual has been offered a position. If the applicant
is under the age of 18, a consent form to be tested must be signed by the parent or guardian before
an applicant will be considered for employment.
2) Existing Employees: Reasonable Cause Testing. Except as may be provided under subpart (1) of
this section, existing employees will only be required to submit to alcohol and drug testing when
there is a workplace accident or when other reasonable cause for testing exists. Decisions on testing
of existing employees shall be at the discretion of the General Manager. If an existing employee
terminates employment for any reason, and subsequently applies for a vacancy, he/she may be
required to submit to pre- employment drug screening the same as any other applicant.
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3) Safety Sensitive Positions. TRIBE may establish regular or random alcohol and drug testing for
employees in particularly "safety sensitive" positions, which are jobs where the momentary lack of
attention may lead to serious injury or death, or have other disastrous consequences. Any such
positions will be identified in the applicable program rules, and the alcohol/drug testing
requirement will be incorporated into the job descriptions of such employees.
c) Definitions:
1) Accident - An unexpected event that occurs during the performance of TRIBE business, or on
TRIBE property, or involving a vehicle owned by TRIBE, that results in personal injury or in property
damages in excess of $1,000.
2) Alcohol - Ethyl alcohol (ethanol) in a beverage or medication.
3) Collection Site - TRIBE clinic, Norton Sound Regional Hospital Laboratory, or other location
designated by TRIBE management.
4) Controlled substance -Any of the substances specified in Schedule I or Schedule II of the Federal
Controlled Substance Act, 21 U.S.C. §801.812, or AS 11.71.010 - AS 11.71.070, including marijuana,
cocaine, opiates, amphetamines, barbiturates, and phencyclidine (PCP).
5) Drugs - See controlled substances.
6) Negative test results - A drug or alcohol test result which does not show evidence of the presence
of the prohibited substance in an individual's system.
7) Reasonable Cause - When an employee's behavior or actions in the workplace lead to a
reasonable conclusion that the employee may be under the influence of alcohol and/or drugs. A
reasonable conclusion requires personal, objective observation and information by a supervisor or
manager, or other TRIBE officer regarding the appearance, behavior, speech, or breath odor of an
on-duty employee. A third-party report that an employee may be under the influence of drugs or
alcohol must be confirmed by appropriate supervisory or management staff.
8) Positive Test Results - For alcohol, a positive test will be a breath alcohol test above a 0.04. For
drugs, a positive test result will show prohibited drug(s) in an individual's system at the following
levels:
Drug Initial Screening/ml; Confirmatory Testing/ml:
Marijuana 50/25
Cocaine 300/150
Opiates 300/300
Amphetamines 1000/500
Barbiturates 300/300
Phencyclidine (PCP) 25/25
In drug testing, an initial screening is performed to eliminate "negative" urine samples from further
testing. A confirmatory test is a second analytic procedure using different chemical principals which
are specific to the drug being tested for, which is used to verify "positive" results of the initial test.
d) Procedures.
1) Pre-employment screening may, at the discretion of the General Manager, be required as part of
the application process. When circumstances warrant, a new employee may be hired prior to the
receipt of the drug test results by TRIBE, provided that the employee is advised in writing that
continued employment is contingent upon a negative result of the drug test.
2) If an employee knows of an accident occurring, or believes that an employee is under the
influence of alcohol and/or a controlled substances, the employee should immediately contact his or
her supervisor or, if the supervisor is not available, the General Manager or the IRA President.
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Reasonable cause is determined by the General Manager in consultation with the employee's
supervisor. When an accident has occurred or if reasonable cause is determined to exist, the
employee will be required to report to the collection site immediately and provide a urine specimen
and/or alcohol breath test. TRIBE will provide transportation to the collection site if necessary, and a
supervisor or the General Manager will accompany the employee. Blood specimens for testing will
not be required by TRIBE, but may be chosen by the employee.
3) If an employee is unable to produce a sufficient volume of urine to constitute a valid test, in
accordance with State of Alaska Department of Labor guidelines, the employee will be held at the
testing site for a period of up to four (4) hours or until they produce a valid test, whichever occurs
first. During the holding period they cannot eat and may have no more than two (2) eight (8) ounce
glasses of water to drink. Anyone who either refuses to wait or who after the four (4) hour period
has been unable to produce a valid sample will be considered to have tested positive.
4) The employee will be responsible for notifying their supervisor and laboratory testing staff for
any prescription or non-prescription medication they are taking. Medical documentation of
prescriptions will be required.
5) The employee suspected of being under the influence of a controlled substance (drugs) and/or
alcohol while on duty will be suspended with or without pay pending further investigation and
receipt of the test results. Suspension will normally be with pay unless the employee's acts or
behavior associated with the incident constitute an infraction which would be grounds for
suspension without pay independent of the use of alcohol or drugs. The final decision regarding
suspension will be made by the General Manager.
6) The supervisor or General Manager, upon making the determination that reasonable cause
existed for screening must provide written documentation of their personal observations on which
reasonable suspicion is based, within twenty-four (24) hours. These statements will be submitted to
the General Manager and maintained in a confidential file separate from the employee's personnel
file. All written documentation will be kept confidential.
7) At the time the specimens are collected, the employee should be given a copy of the specimen
collection procedures used by the collection site personnel. The employee shall sign test authorizing
forms and disclosure of the test results to TRIBE and the employee.
8) Failure to provide a specimen, refusal to take a drug test, sign the authorization and disclosure
forms or cooperate with the collection personnel will constitute a presumption of being under the
influence of alcohol and/or a controlled substance. Under such circumstances, the employee will be
subject to appropriate disciplinary actions which may include termination of employment.
9) The General Manager will receive all test results.
e) Confidentiality.
All test results, either positive or negative will remain confidential. TRIBE will only disclose this
information in writing, to the employee, the employee's supervisor, other the President on a need-
to-know basis.
f) Disciplinary Action.
TRIBE may impose any appropriate discipline including termination of employment if an employee is
found to be using alcohol or drugs while on the job, or for behavior at work which would otherwise
be grounds for discipline irrespective of drug or alcohol use. Otherwise, employees suffering from
addiction to drugs and/or alcohol will receive the same consideration that is presently extended to
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employees having other illnesses. Employees will be allowed first to utilize their personal leave, and
then leave without pay to pursue an appropriate program of treatment. Where treatment is
unsuccessful and the alcohol or drug abuse continues or recurs, TRIBE will resort to disciplinary
action up to termination of employment. Any disciplinary action taken because of continuing or
recurring alcohol or drug abuse will be imposed consistent with TRIBE's Personnel Policy in Article
VI.
Section 2.30 Drug and Substance Abuse Treatment
TRIBE employees are advised that drug and substance abuse counseling and rehabilitation services
are provided through Norton Sound Health Corporation and other local and statewide treatment
programs. TRIBE's insurance benefit program may or may not funds treatment for employees.
Employees are advised to review their benefit booklet to determine the full extent of benefits.
Employees who have a substance abuse problem which affects their job performance are advised to
seek treatment. If an employee has a substance abuse problem, seeks treatment, and is able to
resolve the situation, no further action will be taken. If however, an employee's job performance is
negatively affected because of alcohol or drug abuse, he or she will be subject to disciplinary action
as outlined in Article VI of these policies, up to and including termination. If an employee's work
performance has suffered extensively because of substance abuse to the point TRIBE is considering
termination, TRIBE may offer the employee the option of entering and successfully completing
substance abuse treatment as an alternative to termination. The General Manager has the
discretion to grant leave with or without pay for this purpose.
Section 2.35 Personal Issues
Employees who are experiencing crises of a personal nature are encouraged to seek professional
support and advice to help resolve the problems. If necessary and with the approval of the
immediate supervisor and the General Manager, employees may be granted leave with or without
pay to seek assistance in resolving personal problems.
Section 2.40 Harassment including Sexual Harassment
Harassment is defined as verbal, written, physical, or visual conduct of a racial, ethnic, or other type
which impairs the employee's ability to perform their job. Supervisors are advised that an employee
does not need to be the direct target of harassment in order or harassment to be established. If
harassment is taking place and is offensive to other employees within the work environment, the
other employee(s) may file a complaint. Sexual harassment is defined as unwelcome sexual
advances, requests for sexual favors and other verbal or physical conduct of a sexual nature when
such conduct:
a) Is made explicitly or implicitly a term or condition of employment; or
b) Is used as a basis for employment decisions; or
c) Has the purpose or effect of interfering with work performance or creating a hostile,
intimidating, or otherwise offensive working environment.
Harassment, including sexual harassment is contrary to basic standards of conduct between
individuals and is prohibited by EEOC regulations. Any employee who engages in any of the acts of
behavior defined above violates TRIBE policy. Employees who feel that they have been
discriminated against on the basis of sex or in any manner harassed, should immediately report such
incidents following the procedure below without fear of reprisal. An employee may seek to resolve a
harassment problem by setting forth in writing the problem and meeting with their immediate
supervisor. The employee may meet with the next higher level of management above the
immediate supervisor or the General Manager if their harassment concern rests with their
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immediate supervisor. The matter shall be thoroughly investigated by the General Manager. TRIBE
will take immediate corrective action when an employee is determined to have violated this policy.
Such action will include a range of disciplinary measures, up to and including termination.
Section 2.45 Public Information
All leaflets, letters, press releases, material for press releases, interviews, recordings, photographs,
undeveloped photographic negatives, public speaking engagements, and other materials relating in
any way to interpretation of TRIBE's policies or internal information must be approved by the
General Manager or designee before publication or distribution. In the event staff are contacted by
news agencies seeking comments on various issues, cases or policies of concern to TRIBE, staff shall
take down in writing the questions and meet with the General Manager prior to relaying TRIBE's
response to the news agency. The General Manager shall notify the President of all such requests
for information or comments.
Section 2.50 Confidential Information
All internal matters including grievances, internal discords, personnel matters, disciplinary actions or
similar matters, finances of the organization, corporate records, and similar matters, shall be
considered confidential by all employees. Any intra departmental matters, such as client files,
applicant files, case files, etc., shall similarly be considered confidential. Unauthorized disclosure of
any such information constitutes cause for disciplinary action including termination.
Section 2.55 Conflicts of Interest
Employees are expected to devote their best efforts to the interests of TRIBE and the conduct of its
affairs. While TRIBE recognizes the right of employees to engage in activities outside of the work
place which are of a private nature and unrelated to our business, a policy of full disclosure will be
followed to assess and prevent potential conflicts of interest from arising.
An employee MAY NOT:
a) Accept, negotiate for, or promise to accept employment or anything of value from any person or
organization, if the employee's department is engaged in the transaction of business with the
person or organization;
b) Be a party to the purchase or influence the purchase of goods or services for the use by TRIBE
from any person or organization in which the employee has a substantial financial interest, unless
the General Manager is notified in writing of the financial interest and approves the purchase in
advance in writing; or
c) Engage in any other employment during those hours the employee is scheduled to work for TRIBE
IRA.
d) be an employee and run for or hold a seat on the council at the same time, except that the
Council may waive this restriction on a case by case basis for purposes of allowing Council
members to seek short term, project specific, generally seasonal employment.
Section 2.60 Other Employment
Employees may engage in employment activities outside of regularly assigned work hours as long as
the employment doesn't interfere or affect an employee's work performance during work hours or
present a conflict of interest with the employee's regular job. Any employee interested in working
outside their normally scheduled work week, including consulting work, shall notify their immediate
supervisor of the nature and extent of the outside employment. Where potential conflict exists,
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written approval from the General Manager must be obtained before engaging in outside
employment. Employees will not engage in any paid activity of a nature that is in some way hostile
or adverse to TRIBE's interests.
Section 2.65 Safety and Security
The safety and security of employees and company property shall be the responsibility of each
employee. Employees are responsible to prevent and report unsafe conditions. In the event of an
accident or injury, both the employee and their immediate supervisor, shall contact the General
Manager within 24 hours to report the accident or injury. The employee will immediately request
the appropriate workers compensation forms and file such forms in a timely manner.
Section 2.70 Advertising
No employee shall act as a paid or unpaid representative for any commercial, political, religious, or
social organization during work hours, except as required for performance of job duties. No
employee shall use any TRIBE IRA facility to distribute or display advertising materials unless
approved by the General Manager or President.
Section 2.75 Political Activity
Any employee participating in partisan or non-partisan political activities shall do so as an individual
and not as a representative of TRIBE IRA. Employment will not be dependent on the support of any
political party, issue, or candidate for office.
Section 2.80 Company Vehicles
TRIBE company vehicles will be used only for official TRIBE business. Any employee found using the
TRIBE vehicles for personal use without prior approval by the General Manager or President shall be
subject to disciplinary action, up to and including termination. Any employee using a company
vehicle for personal use who is in an accident, shall be expected to pay for the damages not only to
the TRIBE vehicle, but also shall be liable for any other damages associated with the accident. Those
departments with vehicles for their exclusive use are responsible for maintaining their own sign out
log, and arranging for maintenance and upkeep as necessary. Administration will maintain the
vehicles available for use by all employees.
ARTICLE III - COMPUTER/ NETWORK USE
Section 3.00 Overview
TRIBE IRA provides employees with access to computer hardware, software, peripherals, and
network resources, in an effort to help employees do their jobs more efficiently. TRIBE employees
are encouraged to use the technology provided to them to further the stated mission of the
organization and better serve tribal members and clients. TRIBE has provided these resources and
expects employees to use them appropriately. TRIBE actively promotes the use of the Internet in the
pursuit of positive, community-building exchange of information, in the reduction of office costs and
overhead, and as a means of regional feedback.
The expectation placed on use of computer resources is much the same as it is with other resources
TRIBE grants access to (e.g.: telephone, FAX machine, copy machines, vehicles, etc.). Computer and
network resources and Internet access are to be used for business purposes only. Just like any other
resource given to an employee, a computer, peripherals, software, network and Internet access
bring about the potential for increased productivity, but, if misused can cause problems which
threaten company security, decrease productivity, cause public relations problems, and can even
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land the organization in legal trouble due to issues like copyright violation, libel, software piracy, and
sexual harassment among others. All existing company policies apply to employee conduct on the
Internet, including those that deal with intellectual property protection, privacy, misuse of company
resources, sexual harassment, information and data security, and confidentiality. Computer,
network, and Internet use are subject to existing TRIBE policy, and local, state, and federal laws.
Willful violation of the policies outlined here is grounds for disciplinary action up to and including
dismissal. Supervisors or the General Manager may also choose to deny employees access to certain
computer software, network resources, or the Internet if the employee is abusing these privileges.
Section 3.05 Computer Use Policy
a) All computer hardware, software, peripherals and networking resources are the property of TRIBE
IRA and are intended for use by employees to further the stated mission of this organization.
b) Employees shall not intentionally harm computer hardware, software, or peripherals.
c) Employees shall not use network and computer resources for personal gain, or for the purposes
of promoting a private business or organization, unless approved to do so in advance by his/her
supervisor and the General Manager.
d) The files on employee computers are the property of TRIBE IRA. TRIBE has the right to view,
remove, and/or copy files from employee workstations at any time for any reason.
e) Software and hardware upgrades will be performed only upon approval by the General Manager
and only by authorized, qualified individuals.
f) Employees shall not load games on their computers, or play games on their computers during
working hours, except on regular breaks.
g) All software packages are to be used in accordance with their licenses. TRIBE employees shall not
illegally copy software, nor shall they distribute licensed software to unlicenced users. This is a
violation of federal law.
h) Software media (floppy disks, CD-ROMs) are the property of TRIBE IRA and shall not be removed
from the premises without specific permission from the General Manager (unless the software is
being used on a laptop for TRIBE business.)
Section 3.10 Internet Use Policy
a) Internet / email service is a privilege and is provided to staff for business use only, except as
otherwise specified in these polices. No employee should have any expectation of privacy as to his
or her Internet usage. Supervisors and or the General Manager may review Internet activity and
analyze usage patterns to assure that company Internet resources are devoted to maintaining the
highest levels of productivity.
b) While using the Internet, employees are subject to terms and conditions outlined by the Internet
service provider TRIBE uses to connect to the Internet. Employee that are utilizing Internet services
that charge by the minute are required to log time spent when such time exceeds 10 minutes for
any single use.
c) TRIBE may choose to limit Internet access to those employees who demonstrate a legitimate
business need.
d) Employees are strictly prohibited from accessing and/or reading other employees' email, unless
specifically permitted to do so by the employee or authorized to do so by that employee's
supervisor.
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e) The display of any kind of sexually explicit image or document on any TRIBE system is a violation
of our policy on sexual harassment. In addition, sexually explicit material may not be accessed,
archived, stored, distributed, edited, or recorded using our network or computing resources.
f) Internet facilities and computing resources must not be used knowingly to violate the laws and
regulations of the United States or any other nation, or the laws and regulations of any state, city,
province, or other local jurisdiction in any material way. Use of any TRIBE resources for illegal
activity is grounds for dismissal, and we will cooperate with any legitimate law enforcement activity.
g) Each employee using the Internet facilities of TRIBE shall identify himself or herself honestly,
accurately and completely (including one's company affiliation and function where requested) when
participating in chats or news groups, or when setting up accounts on outside computer systems.
h) TRIBE retains the copyright to any material posted to any forum, news group, chat, or World Wide
Web page by any employee in the course of his or her duties.
I) Employees am reminded that chats and news groups are public forums where it is inappropriate
to reveal confidential TRIBE information.
j) Employees shall not send movies, games, and images as email attachments, unless the files serve a
legitimate business need.
k) Employees shall not use electronic mail to solicit or advertise for commercial ventures, religious
or political causes, outside organizations or other non-job related solicitations.
I) Employees may use their Internet facilities for non-business emails, research or browsing during
meal time or other breaks, or outside of work hours, provided that all other usage policies are
adhered to and provided that the service has free access and does not charge by the minute, or
provided that the employees logs all time spent and provides accounting with the specific log on-log
off details of time spent.
m) TRIBE may comply with requests from law enforcement and regulatory agencies for logs, diaries,
and archives on individuals' Internet activities.
n) Employees with Internet access may download only software with direct business use, and must
arrange to have such software properly licensed and registered. Downloaded software must be used
only under the terms of its license. All downloaded software becomes the property of TRIBE IRA.
o) User IDs and passwords help maintain individual accountability for Internet resource usage. Any
employee who obtains a password or ID for an Internet resource must keep that password
confidential. TRIBE policy prohibits the sharing of user IDs or passwords obtained for access to
Internet sites. The General Manager shall be required to keep a log of all employee passwords, if
any, to ensure that TRIBE administrative staff has full access to all electronic files stored on TRIBE
equipment. All electronic files stored on TRIBE equipment is the property of TRIBE and TRIBE retains
the right to access such information at any time for any purpose.
ARTICLE IV - COMPENSATION
Section 4.00 Salaries.
Salaries for TRIBE IRA employees shall be paid in accordance with the board approved salary
compensation system. Salaries in all cases shall be dependent on budgetary and contract
considerations.
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Section 4.05 Salary Increases.
Salary increases may be granted (in accordance with guidelines contained in the Salary
Compensation System) if an employee's overall work performance is ranked good or better during
the annual employee performance evaluation process. Salary increases for regular employees, if
granted, will generally take effect on anniversary date of hire or anniversary date of last increase. An
evaluation must be completed before a salary increase will be authorized. All salary increases are
subject to budgetary considerations and must be approved by the General Manager and Finance
Officer, who shall verify the availability of funds.
Section 4.10 Salary Reductions
Reductions in salary may result from budget cuts, reductions in program support, or reasons other
than disciplinary actions. Reduction in salary is not considered a demotion and may be temporary,
pending reinstatement of adequate funding. If a reduction in salary is caused by budget cuts, any
reinstatement of salaries must be approved by the General Manager and Finance Officer.
Section 4.15 Payroll Deductions.
Payroll deductions will be made as required by law, court order, and such other written
authorization as an employee may provide, subject to the approval of the Finance Officer.
Section 4.20 Pay Periods.
Employees shall be paid every two weeks. Employees are responsible for completing their bi-weekly
time sheet by of the week following the end of a pay period. Approved time
sheets must be submitted to the Accounting Department by close of business on . If
time sheets are not received prior to the deadline, the employee may not receive their paycheck
until the following pay day. Implementation of the policy shall be at the discretion of the General
Manager.
Section 4.25 Pay Advances.
Pay advances are generally discouraged but may be issued at TRIBE's discretion when: 1) an
employee will be on vacation or travel status during a payday; or 2) in cases of extreme emergency
such as medical reasons, family emergencies or natural disasters. Other circumstances will be
evaluated on an individual basis by the employee's immediate supervisor and General Manager. The
following expenses are not considered emergencies: rent, house payments, car payments, groceries
or other normal monthly bills. A written request specifying why the advance is needed along with a
time sheet documenting the hours worked to date during the current pay period shall be submitted
to the General Manager prior to issuance of any advance. If approved, pay advances may not exceed
the amount the employee earned to date during the current pay period.
Section 4.30 Overtime Compensation.
It is the policy of TRIBE IRA to reduce to a minimum the necessity for overtime work. All overtime
must be approved in writing in advance by the immediate supervisor and the General Manager. If a
supervisor assigns employee overtime, the employee must work the additional time. Overtime
compensation shall be paid to non-exempt employees when they work in excess of an eight hour
day or a forty hour work week at one and one half times the employee's normal rate of pay. Non-
exempt employees required to work on a scheduled holiday will be paid double their regular rate of
pay for any hours worked. Paid time off for holidays, jury duty, vacation, sick leave or any leave of
absence will not be credited as a regular work day for computation of weekly overtime. All
employees classified as exempt from overtime compensation under state and federal law shall not
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be eligible to receive overtime compensation, unless prescribed by law. Exempt status will be
indicated in all appropriate position descriptions, and employees will be notified of their status
when hired or upon a change in status as approved by the General Manager and the Council.
Section 4.35 Compensatory Time
No employee is entitled to take "comp time" for hours worked outside of his or her regularly
scheduled work day or work week. Non-exempt employees shall accrue overtime compensation
pursuant to Article II, sections 2, and Article IV, section 7. An adjusted work schedule can be
arranged upon mutual agreement of the employee and the supervisor where for one particular day,
the hours are changed to meet certain situations. Exempt employees shall not accrue overtime or
compensatory time.
Section 4.40 Errors in Employee's Pay.
It shall be the responsibility of each employee that he or she receives the exact amount of earnings
due him or her. Errors on an employee's payroll check should be reported to Finance immediately
upon discovery. The employee will be required to agree to a repayment program, in writing, in the
event of an overpayment. If an employee has been underpaid an adjustment shall be made to
correct the error at the earliest following pay period.
ARTICLE V - BENEFITS
Section 5.00 Holidays.
Each regular employee will be compensated for all holidays observed by TRIBE IRA, provided that
the employee works (or is in pay status) the last work day before and the first work day after the
holiday. If an employee has previously requested in writing, received approval, and has accrued
available personal leave, to take personal leave for full days before or after a holiday, the employee
will be paid for the holiday. Employees will be compensated for the same number of hours that they
normally work each day. Employees on LWOP status will not receive holiday pay. TRIBE IRA will
observe the following holidays:
New Year's Day - January 1
Martin Luther King, Jr. Day - January (Monday) 16
Washington's Birthday - Third Monday in February
Joe E. Brown Day - March 18
Memorial Day - Last Monday in May
Independence Day - July 4th
Labor Day - First Monday in September
Native American Day - October 12th
Veteran's Day - November llth
Thanksgiving Day - Fourth Thursday in November
Christmas Day - December 25th
Employee's Birthday - Employee/Supervisor mutually agreed upon date
Non-exempt employees required to work on a scheduled holiday: 1) will be paid two times their
regular rate of pay for hours worked; or 2) if agreed upon in writing by both the employee and the
immediate supervisor, they may elect to observe another day as their holiday in lieu of receiving
holiday pay for the holiday worked. An exempt employee required to work on a holiday will be given
another day off at a time mutually convenient to the employee and their immediate supervisor. The
General Manager, in consultation with the President may reschedule holidays (in example from mid-
week to either end of the week) to enable employees to take a three day holiday.
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Regular part-time employees will be granted a paid holiday to the extent that the holiday falls on
their normal work day. Regular part-time employees scheduled to work less than 7 VT. hours on a
holiday will be paid for the number of hours regularly worked on that day provided they work the
day prior to and after the scheduled holiday or are authorized to take personal leave in advance.
Temporary employees who have worked for TRIBE for one (1) month or longer shall receive holiday
pay provided they work regularly scheduled work days before and after the holiday.
Section 5.05 Personal Leave
Regular and probationary employees who have completed three (3) consecutive months of
employment shall accrue and be eligible to use personal leave. Except for illness or emergencies, the
use of personal leave must be approved in advance by the immediate supervisor to ensure adequate
staffing. Individuals requesting to take one or more weeks of paid personal leave may receive their
paycheck in advance provided a pay day falls during the period of time for which leave is requested.
Personal leave accrues as of the date of hire for regular employees. Recently hired probationary
employees may take personal leave up to the amount of hours accrued since their date of hire, if
necessary because of child illness or personal illness. Recently hired probationary employees may
not take paid personal leave for other purposes and may not donate personal leave.
The accumulation of personal leave will be as follows:
a) 00-24 months of service: seven hours per pay period or one hundred eighty two hours per year
(4.85 weeks);
b) 25-48 months of service: eight hours per pay period or two hundred and eight hours per year
(5.55 weeks);
c) 49-72 months of service: nine hours per pay period or two hundred thirty four hours per year
(6.24 weeks); and
d) 73 months, (over six years of service) and over: ten hours per pay period or two hundred sixty
hours per year (6.93 weeks).
Employees must maintain regular employee status to accumulate personal leave. Employees serving
a probationary period following a transfer or promotion will continue to accrue and be eligible to
use personal leave. Temporary employees do not accrue personal leave. Regular part-time
employees will accrue personal leave at a rate proportional to the number of hours per pay period
they are normally scheduled to work. Employees with prior service to TRIBE IRA will be allowed to
use years of previous service in determining the rate of accumulation of personal leave, so long as
the employee is re-hired within one year of separation. The rate of accumulation will be determined
at the time of hire. All personal leave accrued shall be utilized before Leave without Pay (LWOP) is
granted. On rare occasions, LWOP may be granted without exhausting personal leave on a case by
case basis upon approval from your immediate supervisor, and final approval from the General
Manager.
A regular employee requesting time off in excess of personal leave accrued must submit an
application for leave without pay to their immediate supervisor, who shall forward the leave
application along with his or her recommendation for final approval to the General Manager. A
request for LWOP for more than 20 working days shall be submitted through the General Manager
to the President for final approval. Employees are encouraged to use personal leave during the fiscal
year in which it accrues. An employee who has accrued personal leave in an amount greater than his
or her annual accumulation on January 1 of any year will be automatically cashed out. Employees
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must give notice and have the leave request approved prior to taking personal leave. Employees
who have completed one year of service and have completed their probationary period may cash
out accrued leave upon approval by the General Manager. Employees are encouraged to utilize at
least two weeks (75 hours) of leave in each calendar year. All cash-outs will be considered taxable
income and the appropriate deductions will be made.
Section 5.10 Subsistence Leave
Regular employees are eligible to take up to five (5) days subsistence leave (either as LWOP or
charged against personal leave) after 12 consecutive months of employment. Subsistence leave
cannot be cashed out, may not be used after a resignation is submitted and must be used by
December 31st of each year. Employees must coordinate subsistence leave with their supervisors
and approval will be based on providing adequate coverage of job duties during ones absence.
Section 5.15 Bereavement Leave
If a regular employee suffers a death in the immediate family, paid emergency leave MAY be
granted to the employee, up to a maximum of five (5) days, and not chargeable to the employee's
personal leave. Immediate family member is defined as a spouse or significant other (boyfriend,
girlfriend, mother, or father of shared children) grandparents, grandchildren of the employee,
parents, children, and siblings of the employee and their significant other or spouse. If the employee
suffers a death of a person other than an immediate family member, and a close relationship is
known to exist, bereavement leave may be granted. An employee requesting bereavement leave
shall notify his/her immediate supervisor and who shall forward the request to the General Manager
for approval. The General Manager shall consult with the President prior to making decisions where
no family relationship exists.
Section 5.20 Admin Leave
TRIBE employees who serve on various boards and commissions, as long as their representation
provides benefit to the residents of the Bering Straits region and does not seriously impact their
ability to effectively fulfill their job functions, may be granted [paid] [unpaid] Administrative Leave
by the General Manager to attend periodic meetings of such boards and commissions. Admin Leave
shall not exceed one week per quarter for each employee. If an employee is requesting Admin Leave
greater than one week per quarter, they must obtain approval by the President. If permission is
granted, employees will not be required to take personal leave during the time they are away from
the worksite. Otherwise, employees may request to take personal leave and if so approved, may
attend the meetings.
Section 5.25 Family and Medical Leave
Family and personal leave for medical reasons may be granted to any employee for up to twelve
(12) weeks preceding and/or following the birth of a child or an adoption, the need to care for a
child, spouse, or parent with a serious health condition or a health condition which limits the
employee's job performance. Such absence shall be charged against personal leave unless leave
without pay (LWOP) is requested and approved. An employee will be determined to have resigned if
he or she does not return to work after the twelve (12) weeks leave is used, unless written
permission has been granted by the General Manager, in consultation with the President, for a leave
extension. Employees must have worked for at least one year and for at least 1250 hours to be
eligible to receive family leave. The employee will not accrue leave during the time they are on
Leave Without Pay (LWOP) status. An employee on family leave or personal leave for medical
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reasons cannot collect unemployment or other government compensation. You should refer to your
group insurance benefit booklet to see if disability coverage applies.
Employees are requested to provide thirty (30) days notice for foreseeable leaves for birth, adoption
or planned medical treatment. When a husband and wife, unwed parents or legal guardians, are
employed by TRIBE and are entitled to leave because of the birth or adoption of a child or to care for
a sick person, the total combined leave period may be limited to twelve (12) weeks. TRIBE may
obtain medical opinions and certificates on the need for the leave and may require another medical
opinion. Medical certifications must include the date the condition began, probable duration, and
appropriate medical facts in order to support an employee's claim to take temporary medical leave.
A qualifying condition is defined as the need for continuing care and the inability to perform one's
job, or the need to care for an ill family member. Employees on leave may be asked to report
periodically on their status and intention of returning to work. In the event of necessary layoffs, a
person on leave will receive the same consideration that they would normally receive had they not
been on leave.
Section 5.30 Jury Duty
Paid leave of absence will be granted to an employee for jury duty, witness duty, or other civil duties
up to a maximum of 30 working days. Such leave will not be charged against an employee's personal
leave. The employee's Jury or Civil Duty compensation will be turned in to the Accounting
Department so that the employee incurs no financial loss or gain.
Section 5.35 Military Leave
Leaves of absence will be granted to an employee for military training and encampment duties. Such
leave may not exceed 10 working days per calendar year without the prior written approval of the
General Manager. The employee's compensation will be reduced by the amount the employee
receives for such military duty, less expenses, so that the employee incurs no financial loss or gain.
Section 5.40 Insurance
[Note: This section applies only if the Council has elected to carry an employee medical insurance
benefit plan.]
Regular employees who work 30 or more hours a week, and who have successfully completed their
initial probationary period or the probationary period determined by the immediate supervisor and
TRIBE General Manager, are eligible to enroll under the TRIBE IRA group insurance plan. The plan
provides medical, dental, life, and disability coverage to the extent program budgets allow. Regular
seasonal employees are eligible for insurance benefits only during the period of active employment.
They may continue their insurance benefits during that portion of the year when they are not
actively employed, provided they reimburse TRIBE for the expense of continuing their benefits. In
some instances, depending on the administration or program budget, TRIBE may elect to continue
insurance coverage for employees not in active work status provided the individuals return to work
within 120 days. A booklet thoroughly explaining the TRIBE Insurance Plan is available from the
finance office or main administrative headquarters office.
The General Manager will be responsible for ensuring that an orientation is given on the benefits
and insurance available to each employee. Temporary employees are not entitled to participate in
TRIBE benefit programs. Each employee is responsible for notifying the Finance Officer in the event
of a change in family or other status (births/adoptions, marriage, death, divorce, etc.) and updating
their insurance, beneficiary and other information as necessary. [Check to see this is in compliance
with current TRIBE Plan: Regular seasonal employees who were eligible for the prior (seasonal) year
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insurance and works: 1) 30 hours per week for the Regular Class 1 plan; or 2) 17 VT. hours (for
grandfathered employees) for the Reduced Class 2 plan, will continue insurance the beginning of the
next month following the rehire date. ]
Section 5.45 Pension
TRIBE administers a Pension Plan for the benefit of its employees. Employees must maintain regular
employee status in order to participate in this plan. Regular employees are eligible to enter the plan
after 12 consecutive months of service during which they have completed at least hours of
work. Entry dates to the plan are January I and July 1 of each year. Employees who terminate
employment may withdraw their vested share of pension contributions. Employees should contact
the Finance Officer for additional information.
Section 5.55 Reductions in Benefits
Benefits received by employees may be reduced due to budgetary considerations with two weeks
written notice. It may also become necessary to set in place an employee contribution plan to assist
in funding employee benefits. In the event either scenario is likely to occur, TRIBE IRA will give as
much notice to employees as is reasonably possible.
ARTICLE VI - REIMBURSEMENT FOR EXPENSES
Section 6.00 Travel, Perdiem Payments/Expenses, General Travel Information.
Travel advances and per diem payments will be made promptly to employees engaged in official
business. Air travel will be arranged by and purchased directly through the IRA or its designated
agent. All employees will be required to fill out a Travel Authorization form which must be approved
and signed by the traveler's immediate supervisor and the General Manager. 10 % of travel
advances will be withheld pending the completion of a Trip Report which shall be completed with 10
days of traveling on official business. To be entitled to compensation for travel costs, employees
must also adhere to the following policies and procedures:
a) Attend all trainings, workshops or other official business for which travel costs and per diem has
been provided.
b) Employees traveling on trips that begin and end on the same day will be entitled to one half the
normal per diem rate regardless of the time spent or place traveled to during the day.
c) Any employee that attends to official business under the influence of drugs or alcohol will forfeit
their per diem for that day. If an employee misses the majority of any business for which she or he
has been authorized to travel for, the employee may be required to repay all costs associated with
the travel and may be subject to further disciplinary action as provided under these policies.
Repayment decisions shall be made by the Council upon recommendation of the General Manager.
d) Any employee that develops a pattern of violating subsection (c) above will be prohibited from
traveling for the Native Village of TRIBE for a period of time to be determined by the Council and
may be required to pay back per diem and travel costs for any trip where documented abuses have
occurred.
ARTICLE VII - EMPLOYEE RELATIONS
Section 7.00 Suggestions.
It is the policy of TRIBE to encourage employee recommendations for improving program and
service delivery as well as administrative processes and procedures. This includes the identification
of problems as well as suggested solutions. Employees are encouraged to put their comments and
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recommendations in writing and forward them to their supervisor or the General Manager. The
General Manager will give serious consideration to all staff comments and recommendations and
take such action as he/she may deem appropriate and within his/her delegated authority. Where
necessary, recommendations shall be forwarded to the Council for consideration and action.
Suggestions which are adopted will be credited to the employee and noted in his or her personnel
file.
[Optional] Section 7.05 Employee Personnel Policy Review Committee
Annually, the General Manager of TRIBE shall solicit and appoint interested employees to sit on the
Employee Personnel Policy Review Committee. This committee shall consist of three (3) employees
(in addition to the General Manager) who shall serve for a one (1) year period. The committee will
review and recommend proposed changes to the TRIBE Personnel Policies to the IRA Council.
Section 7.10 Voluntary Separations.
All employees are requested to give least two (2) weeks' notice of their resignation. Lack of notice
shall be noted in the employee's personnel file and considered in future hiring decisions unless the
General Manager agrees in advance in writing to a shorter time frame. Supervisors are responsible
for completing the Exit Interview with the terminating employee. If an employee is terminated, their
final paycheck shall be made available to them within three (3) working days of their termination
date. If an employee resigns, the final paycheck shall be available at the next regular payday or as
otherwise agreed to by the General Manager.
Section 7.15 Post Employment
It is against TRIBE policy to provide information about a former employee to potential employers
without a signed and dated authorization from the former employee to do so. Any statements made
must be statements of fact and not subjective opinion. If contacted by a potential employer who
does not have a signed authorization from the former employee, employees are required to refer
the individual to the General Manager or Finance Officer who will verify dates of employment, salary
and position held unless a signed agreement is on file releasing other information.
ARTICLE VIM-DISCIPLINE
Section 8.00 Discipline
Disciplinary action by a supervisor or the General Manager will be initiated to remind, encourage, or
reprimand employees regarding conduct, performance of duties, or attendance.
Section 8.05 Causes of Disciplinary Action.
As stated previously, employees of TRIBE serve at-will and their employment may be terminated at
any time, for any reason. The following list is representative of some of the activities which may
result in disciplinary action. It is not comprehensive and does not alter the employment at-will
relationship between the employee and TRIBE:
a) Conviction of a felony;
B) Conviction of a misdemeanor which is related to the position held by the employee;
c) Addiction to the use of alcoholic beverages or to the use of narcotics which affects the
performance of the employee's duties;
d) Partaking of intoxicants or controlled substances or being under the influence while on duty;
e) Insubordination or refusal to comply with instructions or failure to perform reasonable duties
which are assigned;
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f) Inefficiency or incompetence;
g) Inattention to duty, repeated tardiness, negligence in the care and handling of TRIBE IRA
property, willful or repeated violation of basic safety practices;
h) Improper or unauthorized use of TRIBE IRA vehicles or equipment;
i) Absenteeism from work without authorized leave;
j) Misconduct in the performance of employee duties;
k) Willful giving of false information or withholding information with intent to deceive when making
application for employment;
I) Falsification of company records including but not limited to employment application or time
sheet;
m) Threatening, intimidating, coercing, using abusive language, or interfering with the performance
of fellow employees;
n) Violence against co-workers, clients, or general public at the workplace.
o) Intentional violations of the TRIBE IRA Personnel Policies
p) Theft.
q) Sexual or other prohibited harassment.
r) Positive drug screen.
s) Misuse of the email and the Internet.
Section 8.10 Disciplinary Procedure
Where appropriate, a policy of progressive discipline will be followed by supervisors. While this
policy provides for several levels of disciplinary action, employees should be aware that progressive
discipline is not required. That is, TRIBE IRA reserves the right to impose disciplinary measures not in
accordance with this policy if it determines that such measures are necessary due to the
circumstances of a particular case. Supervisors shall initiate constructive efforts to assist employees
to achieve satisfactory standards of conduct and job performance and shall seek to address
employee problems or negative behavior only to the extent required. All disciplinary notices and
actions must be thoroughly documented in writing. Depending on the facts and circumstances
involved in each situation, supervisors may choose to begin disciplinary action at any step. In
general, however, it follows this process:
a) Oral Warning: For minor infractions, the employee will be issued an oral warning. An oral warning
serves to caution the employee that corrective action is necessary to avoid a more serious form of
discipline. If the situation does not improve within a reasonable time, the supervisor may repeat the
warning or implement a more serious discipline option. The supervisor will document the date and
nature of the oral warning, have this document placed in the employee's personnel file, and ensure
that the employee is given a copy of the document immediately. The documentation of Oral
Warnings will be kept in the personnel file for a period up to 1 year.
b) Written Reprimand: A written reprimand is a warning action that places the employee on notice
that failure to correct conduct will result in more severe discipline. Copies of written reprimands will
be permanently placed in the employees personnel file. This may be issued for repeated minor
infractions, or a more substantial infraction. If the situation does not improve within a reasonable
time, the supervisor may repeat the measure or take the steps required to discharge the employee.
The written warning notice will be prepared following a disciplinary interview with the employee.
The employee will be given an opportunity to comment in writing and will be asked to sign the
notice, acknowledging receipt. Three copies of the notice will be distributed as follows: 1) employee;
2) supervisor; and 3) personnel file.
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c) Probation: A regular employee may be placed on probation by the General Manager, upon
recommendation from a supervisor, for up to one hundred and eighty (180) days for disciplinary
purposes. The employee shall be notified in writing: 1) why they are being placed on probation; 2)
what is expected from them in terms of improved work performance; 3) that failure to correct
conduct could result in more severe discipline up to and including termination. A copy of the
probationary notice shall be placed in the employee's personnel file. If the situation does not
improve within a reasonable time, the supervisor may take the steps required to discharge the
employee. A regular employee placed on probation and subsequently dismissed, shall have the right
to appeal the dismissal to the IRA Council.
d) Demotion: A demotion in position may be used as a form of discipline when discharge is not
warranted, or when the General Manager believes the employee has the potential to correct his or
her conduct or to satisfactorily perform the duties of a different position.
e) Suspension Without Pay: For major infractions, or failure to respond appropriately to prior
disciplinary action, suspension without pay may be the appropriate recourse. A suspension without
pay may only be imposed by the General Manager, in consultation with the President, and shall not
exceed ten (10) working days at any one time. A suspended employee shall be notified in writing of
the reasons for suspension, and the avenue available for appealing the General Manager's decision.
The suspended employee shall be afforded an opportunity to respond in writing to the reasons for
suspension within ten (10) working days of the notice of suspension. Following the employee's
response, the General Manager may affirm or modify the suspension order.
f) Discharge: When in the judgment of the employees supervisor and the General Manager, an
employee has committed a major infraction or has failed to respond appropriately to prior
disciplinary action, or it is otherwise determined that discharge is an appropriate disciplinary action,
an employee may be discharged. A temporary employee may be dismissed at any time without
recourse to the employee grievance or appeal procedure. Dismissals may be effective immediately if
the General Manager believes it is in the best interest of the organization that the employee be
removed from the workplace. The regular employee shall be given written notice of the discharge.
The notice shall include a statement: 1) of the improper conduct, inadequate performance or other
reasons for dismissal; 2) the effective date of the dismissal; 3) explaining what avenues are available
for appealing the action to dismiss.
Section 8.15 Appeal for Suspensions/Dismissals
Any regular employee, who is suspended and/or dismissed, shall have the right to appeal such
action directly to the IRA Council. This right of appeal is the exclusive remedy for a suspended or
dismissed employee and the decision of the Council shall be final and binding on the parties. Not
later than ten (10) working days after the receipt of the notice of suspension or the receipt of notice
of the effective date of the dismissal, the affected individual must submit a request or notice of
appeal to the General Manager who will forward the appeal to the President. The appeal must be in
writing and must contain a detailed statement specifying: a) the action being appealed; b) the
reasons why the employee believes the action was not in good faith or was in error. The council
shall take action on the appeal within days of receipt from the General Manager, who shall
record the date it is turned over to the President.
Section 8.20 Grievance Policy
It is the general policy of TRIBE IRA to provide for an orderly process whereby employees may have
their problems and concerns addressed as fairly and rapidly as possible without fear of reprisal.
These procedures are available to all employees, except employees who have resigned or whose
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term of employment otherwise ends before the grievance process can be completed. Every effort
will be made to find an acceptable solution by informal means at the lowest possible level of
supervision.
Definition of Grievance: The term "grievance" means all allegations by an employee or group of
employees that such claimant's rights, benefits, privileges, or interests provided for in the personnel
policy have been violated or that the personnel policy has been misapplied or misinterpreted with
respect to such claimant in a particular case.
Section 8.25 Grievance Procedure
The procedure for an employee with a problem or complaint would be to first informally talk with
the immediate supervisor. If it is not resolved, then the following steps should be taken:
a) The employee may proceed individually or select a representative to assist them in resolving the
problem or concern at hand.
b) The employee shall document the problem clearly and concisely in writing. Memo in hand, the
employee shall sit down and have a frank and open discussion with the immediate supervisor to
seek to resolve the situation. If the employee has bona fide reason to believe that there is a
complete breakdown of employee-supervisor communications and that the matter cannot be
satisfactorily resolved through this step, the employee may develop and present written
documentation to the next supervisory level, which if the General Manager is the immediate
supervisor, may be the President.
c) If the immediate supervisor is unable to satisfactorily resolve the matter within ten (10) working
days of receiving the written memo, the employee should then, within ten (10) working days,
present the same to the General Manager, or if the General Manager is the immediate supervisor,
directly to the President.
d) If the immediate supervisor is able to resolve the matter, he/she shall provide a brief written
summary of the issues and the resolution of the matter to the General Manager who shall hold such
written documentation in an independent, separate, confidential file. If the matter goes to the
General Manager for resolution, he/she will give full consideration to the problem and, if necessary
confer with the parties concerned After reviewing the written documentation and conferring with
the parties concerned, the General Manager shall within ten (10) working days take appropriate
action which must be in writing and may be in the form of a recommendation to the supervisor and
the employee or other employees or an order requiring compliance with applicable rules and
regulations. The General Manager may also determine that the grievance is without merit and
dismiss it.
e) If the employee does not believe the General Manager has properly resolved the matter or does
not agree with the decision to dismiss, within ten (10) working days of receiving the General
Manager's written determination, the employee may request in writing that the grievance be
forwarded to the Council for their consideration. The Council shall consider all available information
and make a decision on the appeal within 30 days of receipt. The decision of the Council shall be
final.
Section 8.65 Other Personnel Actions.
The following is a description of other non-disciplinary actions which may be taken. This list is not all
encompassing. Other actions may be taken which are not noted below:
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a) Lay-off/ Reduction in force. When a reduction in force is deemed necessary because of a shortage
of funds or work, the General Manager shall, upon consideration of the recommendations of the
Program Director, determine which position (s) will be deleted. The recommendations of the
General Manager will be presented to the Council for final decision.
Any employee who is laid off because of funding constraints will receive maximum feasible notice of
termination, but in no event less than two weeks notice. Layoffs shall not be considered disciplinary
actions. In the event that funding is inadequate to maintain existing staff levels, the criteria which
will be used in determining lay-offs will be the position's role in program priorities and work plans.
All attempts will be made to transfer an employee subject to layoff notice to any available vacancy
within the organization for which the employee is qualified, subject to program regulations. An
employee laid off because of funding constraints will receive preference for rehire for a one year
period after layoff providing that they meet the minimum requirements for an available position.
b) Demotions. Because of funding or staffing constraints, it may be necessary for the General
Manager to demote some positions. Demotions because of funding or staffing constraints shall not
be considered disciplinary actions.
c) Transfers. Transfer of an employee from one job to another job requiring the same general skills
may occur as a result of changes in staffing, funding, at the initiative of the General Manager, or at
the request of the employee. Transfers shall not be considered disciplinary actions.
e) Promotions. TRIBE employees are encouraged to apply for positions within the organization which
they feel confident they can successfully fill. All else being equal, an effort will be made to promote
from within a capable and experienced individual, based on their demonstrated ability to assume
greater responsibility.
ARTICLE IX - TRAINING AND DEVELOPMENT
Section 9.00 School Attendance
Employees may be granted time off from work with or without pay to attend school (including
correspondence school) for job related courses during normal work hours. Any such requests must
be directed to the employee's immediate supervisor and approved by the General Manager.
Section 9.05 Continuing Education
TRIBE IRA will reimburse for the book costs and tuition of regular employees successfully completing
courses (if funds are available) with a grade of "C" or better through an institution of higher
education not to exceed two courses per term. The course(s) must increase the competence of staff
in present jobs and/or prepare them for advancement within the organization. Courses that are not
job-related will not be reimbursed. If an employee wishes to take courses during normal duty hours,
or seeks to have tuition or book costs reimbursed, they must have prior written approval from the
General Manager. Time spent attending classes or training outside regular working hours is not work
time, whether or not it is job-related.
Section 9.10 Sabbatical Leave
Employees who have worked for TRIBE for ten or more years or more may request sabbatical leave
for a period of time not to exceed a total of one year. This sabbatical leave will be primarily for the
purpose of completing a degree or some other similar worthy endeavor which will improve the
employee's job performance. The employee must prepare and submit a sabbatical proposal to the
General Manager who will prepare a recommendation for presentation and approval to the Council.
If approved by the Council, employees may be allowed one sabbatical leave during their career with
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TRIBE unless special conditions warrant a waiver of this limit. Those employees, who request and
receive sabbatical leave, will be offered their position back at the end of the sabbatical period,
providing the funding is still available. Employees wishing to continue medical/dental/life insurance
during their sabbatical will need to pay for their own coverage. Employees requesting a sabbatical
must submit the request at least six months in advance. The Board will make the final decision as to
whether or not to approve an employee's request for sabbatical leave.
Section 9.15 Training Positions.
Upon a recommendation by the General Manager and approval by the Council, positions within
TRIBE may be designated as trainee positions. Training positions shall be advertised in house. If a
position is designated as a trainee position, the supervisor overseeing the training position will
develop a training plan (which must be approved by the General Manager) to bring a selected
individual up to the skill and knowledge level necessary to satisfactorily perform all functions of a
job. The employee filling the position will receive a wage one grade less than the starting wage for
the position - until such time as they master the various skills and knowledge necessary to
satisfactorily accomplish job functions. Savings realized in salary may be used to pay for training for
the individual occupying the training position. The training plan will include the approximate time
frame of the training along with a detailed plan which will include an evaluation of the success of
the training and a decision on whether to promote the individual into the position for which they
were potentially trained, assign them to another position if one is available, or released from
employment.
DEFINITIONS
Anniversary Date - The date of hire, lateral transfer, demotion, or promotion
Demotion - The voluntary or involuntary transfer of an employee from a position in one pay-grade to
a position in a lower pay grade.
Employment Date -The date an employee begins performance of job duties and is placed on the
payroll.
Emergency Hire - An emergency full or part-time employee hired to fill a vacancy for a period during
the recruitment process.
Exempt Employee - are those employees employed in an executive, administrative, or professional
capacity
An executive is any employee:
1) Whose primary duty consists of the management of the enterprise in which she or he is employed
or of a department or subdivision of it;
2) Who customarily and regularly directs the work or two or more other employees therein;
3) Who has the authority to hire or fire other employees or whose suggestions and
recommendations as to the hiring, firing, advancement, promotion, or other change of status of
other employees is given particular weight;
4) Who customarily and regularly exercises discretionary powers;
5) Who does not devote more than 20 percent of his or her hours during the workweek to activities
not directly and closely related to the performance of duties described above; and
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6) Who is compensated for his or her services on a salary basis at a rate of not less than $155 per
week.
An employee employed in an Administrative Capacity is any employee:
1) Whose primary duty consists of either office or non-manual work directly related to management
policies or general business operations or administrative functions for a school system, educational
establishment, or institution directly related to academic instruction or training;
2) Who customarily and regularly exercises discretion and independent judgment;
3) who regularly and directly assists an executive; or who performs, under general supervision only,
specialized work requiring special training, experience or knowledge, or who executes, under
general supervision only, special assignments and tasks;
4) Who does not devote more than 20 percent, of his or her hours worked in the workweek to
activities not directly related to the functions described above;
5) Who is compensated for his or her services on a salary or fee basis at a rate of not less than $155
per week.
An employee employed in a Professional Capacity is any employee whose primary duties consist of:
1) Work requiring advanced knowledge acquired by a prolonged course of specialized intellectual
instruction and study;
2) Work that is original and creative in character in a recognized field of artistic endeavor; or
3) Teaching, instructing, or lecturing for an educational establishment;
4) Whose work requires the consistent exercise of discretion in its performance;
5) Whose work is predominantly intellectual and varied in character;
6) who does not devote more than 20 percent of his or her hours worked during the workweek to
activities not essential to the work described above; and
7) Who is compensated for services on a salary or fee basis at a rate of not less than $170 per week.
Family, Immediate - Spouse or significant other, grandparents, grandchildren of the employee,
parents, children, siblings of the employee or significant other or spouse.
Full Time - An employee scheduled to work 40 hours per week.
Non-Exempt Employee - A full time or part-time employee who does not meet the criteria for
exemption as an executive, administrative, professional employee or other non-exempt capacity as
defined under applicable federal and state law.
Overtime - Time worked in excess of 8 hours in any one day, or 40 hours in any workweek, or in
excess of the hours indicated in a certified flexible work hour plan by a non-exempt employee.
Pay-grade - The pay range established for a specific position.
Part-time - An employee scheduled to work less than 40 hours per week.
Personnel Policy Committee - The General Manager, Vice General Manager, and Human Resources
Director Other employees are appointed annually.
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Probationary Employee - A regular employee's status upon initial hire, lateral transfer, demotion, or
promotion The probationary period gives the appropriate supervisor a period in which to determine
whether the regular employee is able to perform his/her job duties satisfactorily.
Regular Employee - A full time or part-time employee who is neither a temporary hire, nor an
emergency hire
Temporary Employee - A full or part-time employee hired to fill a vacancy for a period not to exceed
a 1 year period and who is not entitled to share in employee benefits.
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SAMPLE PERSONNEL FORMS: Table of Contents
REVISED 03/29/06
SAMPLE PERSONNEL FORMS
1. Recruitment Forms
• Job Description -Tribal Administrator
• Authorization to Recruit
• Employment Application
• Authorization to Release Information
• Interview Questions
• Skills Test (Tribal Administrator needs to determine)
• Reference Check
• Authorization to Hire
• Salary Scale (Needs to be determined by TC or Administrator)
• Scoring Sheets
2. Payroll Forms
• Payroll Status Form
• Sample Timesheet
• W-4
3. Mandatory Forms for All Employee Files
• Mandatory Forms Check-list
• 1-9
• Health Questionnaire - For Workers Comp
• Drug Free Workplace Policy
• Employee Evaluation
4. Document Routing and Approval Forms
• Routing Slip
• Fax Cover Form
5. Travel Forms
• Travel Authorization
• Trip Report
• Changes in Travel
6. Property Form
• Property Check-Out Form
7. Leave Request Form
• Leave Request Form
8. Procurement (Purchasing) Forms
• Check Request
• Professional Services Agreement
• Purchasing Policy
• W-9 Form
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Six Good Faith Efforts and Contract Administration Fact Sheet
The Six Good Faith Efforts and Contract Administration Requirements
The Keys to Outreach and Opportunity
Old MBE/WBE Program
Program Comparison
New DBE Program
Following the "Six Affirmative Steps" under
40 CFR Part 31, and the Six Positive Efforts
under 40 CFR Part 30 were required by all
grantees.
The "Six Good Faith Efforts" combine the "Six
Affirmative Steps" and the "Six Positive Efforts" and
are still required by all grantees. The substance of
the efforts has not changed.
No protections for DBE Subcontractors
Several mechanisms are in place to protect DBE
Subcontractors:
• 30 day payment provision, notifications of
DBE terminations, and continuing the Six
Affirmative Steps after termination of a DBE.
• Completion of 3 new forms to prevent "bait
and switch" tactics. None of these new
forms are completed, or submitted by the
grant recipient. These forms are filled out by
the recipient's prime contractors and
subcontractors.
No mechanism for recipients to develop and
maintain their own list of DBEs
Recipients are now required to create and maintain a
bidders list. There is a $250K exemption for this
requirement.
What is the Purpose of the Six Good Faith Efforts?
The Good Faith Efforts are required methods implored by all EPA financial assistance agreement
recipients to ensure that all disadvantaged business enterprises (DBEs) have the opportunity to
compete for procurements funded by EPA financial assistance dollars.
What are the Six Good Faith Efforts?
• Ensure DBEs are made aware of contracting opportunities to the fullest extent practicable
through outreach and recruitment activities. For Indian Tribal, State and Local and
Government recipients, this will include placing DBEs on solicitation lists and soliciting them
whenever they are potential sources.
• Make information on forthcoming opportunities available to DBEs and arrange time frames
for contracts and establish delivery schedules, where the requirements permit, in a way that
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encourages and facilitates participation by DBEs in the competitive process. This includes,
whenever possible, posting solicitations for bids or proposals for a minimum of 30 calendar
days before the bid or proposal closing date.
• Consider in the contracting process whether firms competing for large contracts could
subcontract with DBEs. For Indian Tribal, State and local Government recipients, this will
include dividing total requirements when economically feasible into smaller tasks or
quantities to permit maximum participation by DBEs in the competitive process.
• Encourage contracting with a consortium of DBEs when a contract is too large for one of
these firms to handle individually.
• Use the services and assistance of the SBA and the Minority Business Development Agency
of the Department of Commerce.
• If the prime contractor awards subcontracts, require the prime contractor to take the steps
in paragraphs (a) through (e) of this section.
What are the New Contract Administration Requirements?
There are a number of new provisions designed to prevent unfair practices that adversely affect
DBEs. Those provisions are as follows:
o A recipient must require its prime contractor to pay its subcontractor for
satisfactory performance no more than 30 days from the prime contractor's receipt
of payment from the recipient.
o A recipient must be notified in writing by its prime contractor prior to any
termination of a DBE subcontractor for convenience by the prime contractor.
o If a DBE subcontractor fails to complete work under the subcontract for any reason,
the recipient must require the prime contractor to employ the six good faith efforts
if soliciting a replacement subcontractor.
o A recipient must require its prime contractor to employ the six good faith efforts
even if the prime contractor has achieved its fair share objectives.
What Are the New Forms Associated With the New Contract Administration Provisions?
• EPA Form 6100-2 - DBE Program Subcontractor Participation Form. This form gives a DBE
subcontractor the opportunity to describe the work the DBE subcontractor received from
the prime contractor, how much the DBE subcontractor was paid and any other concerns
the DBE subcontractor might have.
• EPA Form 6100-3 - DBE Program Subcontractor Performance Form. This form captures an
intended subcontractor's description of work to be performed for the prime contractor and
the price of the work submitted to the prime.
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• EPA Form 6100-4 - DBE Program Subcontractor Utilization Form. This form captures the
prime's intended use of an identified DBE subcontractor, and the estimated dollar amount
of the subcontract.
Form
Requirement
Provided By: Completed By: Submitted To:
EPA Form
6100-2
EPA Form
6100-3
EPA Form
6100-4
Recipients required
to have prime
contractors
provide form to
Subcontractors
Recipients required
to have prime
contractors
provide form to
Subcontractors
Recipients required
to have prime
contractors
complete the form
Prime
Contractors
Prime
Contractors
Recipients
DBE
Subcontractors
DBE
Subcontractors
Prime
Contractors
EPA DBE
Coordinator
Recipients
as part of a
bid or
proposal
package
Recipients
as part of a
bid or
proposal
package
What is the New Bidders List Requirement?
The purpose of a bidders list is to provide the recipient and entities receiving identified loans
who conduct competitive bidding with as accurate of a database as possible about the universe
of MBE/WBE and non-MBE/WBE prime and subcontractors.
• A recipient of a Continuing Environmental Program Grant or other annual grant must create
and maintain a bidders list.
• A recipient of an EPA financial assistance agreement to capitalize a revolving loan fund also
must require entities receiving identified loans to create and maintain a bidders list if the
recipient of the loan is subject to, or chooses to follow, competitive bidding requirements.
• The list must include all firms that bid or quote on prime contracts, or bid or quote
subcontracts on EPA assisted projects, including both MBE/WBEs and non-MBE/WBEs.
• The bidders list must only be kept until the grant project period has expired and the
recipient is no longer receiving EPA funding under the grant. For entities receiving identified
loans, the bidders list must only be kept until the project period for the identified loan has
ended.
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What Information Must Be Retained on the Bidders List?
• (1) Entity's name with point of contact;
• (2) Entity's mailing address, telephone number, and email address;
• (3) The procurement on which the entity bid or quoted, and when; and
• (4) Entity's status as an MBE/WBE or non-MBE/WBE.
What Are There Exemptions From The Bidders List Requirements?
• A recipient of an EPA financial assistance agreement in the amount of $250,000 or less for
any single assistance agreement, or of more than one financial assistance agreement with a
combined total of $250,000 or less in any one fiscal year, is exempt from the requirement to
create and maintain a bidders list.
• A recipient under the CWSRF, DWSRF, or BCRLF Program is not required to apply the bidders
list requirement to an entity receiving an identified loan in an amount of $250,000 or less, or
to an entity receiving more than one identified loan with a combined total of $250,000 or
less in any one fiscal year.
• These exemptions are limited to the bidders list requirements only.
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Standard Industry Classification (SIC) codes
The following standard industrial classification codes may be relevant on EPA funded projects.
Construction
SIC
Industrial buildings
Heavy construction water/sewer
Other heavy construction (non-residential)
Concrete work
Excavation work
Equipment/Supplies
Manufacturers
If items purchased from manufacturer
Office furniture
Office supplies (paper, etc.)
Computer/Office
Lab equipment
Retail Equipment/Suppliers
Courier services
Local trucking
Travel agencies
Telephone services
Clean-up (oil spills, pesticides)
Furniture sales (office)
Office equipment
Computer
Office supplies
Motor Vehicle Supplies
Wholesale sales
Parts
Tires
Dealers
Gasoline
1541
1623
1629
1771
1794
2521, 2522, 2531, 2441, 2424, 2591, 2599
2676, 2677, 2678
3571, 3572, 3575, 3577, 3578, 3579
3826, 3829
4215
4212
4724
4822
4959
5021
5044
5045
5046
5012
5013,5015,5531
5014
5511
5541
Services
Motor Vehicle Services
Rental (cars)
Rental (trucks)
Motor vehicle repairs
7514
7513
7532-7539
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Computer Services
Rental 7377
Maintenance 7378,7379
Professional Services
Engineering services 8711
Architects 8712
Surveyors 8713
Accountants 8721
Testing laboratories 8734
Miscellaneous Services
Hotels 7011
Photocopying 7334
Pest control 7342
Janitorial 7349
Air conditioning/heating service and repair 7623
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Title 2 of the Code of Federal Regulations
See Office of Management and Budget (OMB) Circular A-87 Cost Principles for
State, Local, and Indian Tribal Governments
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Title 25 of the Code of Federal Regulations
CHAPTER 14, SUBCHAPTERII, SECTION 45Oe: WAGE AND LABOR STANDARDS
(a) Similar construction in locality
All laborers and mechanics employed by contractors or subcontractors (excluding tribes and
tribal organizations) in the construction, alteration, or repair, including painting or
decorating of buildings or other facilities in connection with contracts or grants entered into
pursuant to this subchapter, shall be paid wages at not less than those prevailing on similar
construction in the locality, as determined by the Secretary of Labor in accordance with
sections 3141-3144, 3146, and 3147 of title 40. With respect to construction, alteration, or
repair work to which the Act of March 3, 1921 [1] is applicable under the terms of this
section, the Secretary of Labor shall have the authority and functions set forth in
Reorganization Plan Numbered 14, of 1950, and section 3145 of title 40.
(b) Preference requirements for wages and grants
Any contract, subcontract, grant, or subgrant pursuant to this subchapter, the Act of April
16, 1934 (48 Stat. 596), as amended [25 U.S.C. 452 et seq.], or any other Act authorizing
Federal contracts with or grants to Indian organizations or for the benefit of Indians, shall
require that to the greatest extent feasible—
1. Preferences and opportunities for training and employment in connection with the
administration of such contracts or grants shall be given to Indians; and
2. Preference in the award of subcontracts and subgrants in connection with the
administration of such contracts or grants shall be given to Indian organizations and
to Indian-owned economic enterprises as defined in section 1452 of this title.
(c) Self-determination contracts
Notwithstanding subsections (a) and (b) of this section, with respect to any self-
determination contract, or portion of a self-determination contract, that is intended to
benefit one tribe, the tribal employment or contract preference laws adopted by such tribe
shall govern with respect to the administration of the contract or portion of the contract.
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Title 40 of the Code of Federal Regulations
Title 40; Protection of Environment
PART 31—UNIFORM ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND
COOPERATIVE AGREEMENTS TO STATE AND LOCAL GOVERNMENTS
http://ecfr.gpoaccess.gov/cgi/t/text/text-
idx?c=ecfr&sid=5al429fbbf2abc09f57143e37e36bbfd&rgn=div5&view=text&node=40:1.0.1.2.29&id
no=40
Section Contents
Sub part A—General
§31.1 Purpose and scope of this part.
§ 31.2 Scope of subpart.
§ 31.3 Definitions.
§ 31.4 Applicability.
§31.5 Effect on other issuances.
§ 31.6 Additions and exceptions.
Subpart B—Pre-Award Requirements
§ 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—Post-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 Subawards
§ 31.30 Changes.
§ 31.31 Real property.
§ 31.32 Equipment.
§ 31.33 Supplies.
§ 31.34 Copyrights.
§ 31.35 Subawards to debarred and suspended parties.
§ 31.36 Procurement.
§31.37 Subgrants.
§ 31.38 Indian Self Determination Act.
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Reports, Records, Retention, and Enforcement
§ 31.40 Monitoring and reporting program performance.
§ 31.41 Financial reporting.
§ 31.42 Retention and access requirements for records.
§ 31.43 Enforcement.
§ 31.44 Termination for convenience.
§ 31.45 Quality assurance.
Sub part D—After-the-Grant Requirements
§31.50 Closeout.
§ 31.51 Later disallowances and adjustments.
§31.52 Collection of amounts due.
Sub part E—Entitlement [Reserved]
Subpart F—Disputes
§ 31.70 Disputes.
Appendix A to Part 31—Audit Requirements for State and Local Government Recipients
Authority: 33 U.S.C. 1251 etseq. ; 42 U.S.C. 7401 etseq. ; 42 U.S.C. 6901 etseq. ; 42 U.S.C. 300f et seq. ; 7
U.S.C. 136 etseq. ; 15 U.S.C. 2601 etseq. ; 42 U.S.C. 9601 etseq. ; 20 U.S.C. 4011 etseq. ; 33 U.S.C. 1401 et
seq.
Source: 53 FR 8075, 8087, Mar. 11, 1988, unless otherwise noted.
Subpart A—General
§ 31.1 Purpose and scope of this part.
This part establishes uniform administrative rules for Federal grants and cooperative
agreements and subawards to State, local and Indian tribal governments.
§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;
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(2) Services performed by employees, contractors, subgrantees, subcontractors, 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.
Accrued income means the sum of:
(1) Earnings during a given period from services performed by the grantee and goods and
other tangible property delivered to purchasers, and
(2) Amounts becoming owed to the grantee for which no current services or performance is
required by the grantee.
Acquisition cost of an item of purchased equipment means the net invoice unit price of the
property including the cost of modifications, attachments, accessories, or auxiliary apparatus
necessary to make the property usable for the purpose for which it was acquired. Other
charges such as the cost of installation, transportation, taxes, duty or protective in-transit
insurance, shall be included or excluded from the unit acquisition cost in accordance with the
grantee's regular accounting practices.
Administrative requirements mean those matters common to grants in general, such as
financial management, kinds and frequency of reports, and retention of records. These are
distinguished from programmatic requirements, which concern matters that can be treated
only on a program-by-program or grant-by-grant basis, such as kinds of activities that can be
supported by grants under a particular program.
Awarding agency means (1) with respect to a grant, the Federal agency, and (2) with respect
to a subgrant, the party that awarded the subgrant.
Cash contributions means the grantee's cash outlay, including the outlay of money
contributed to the grantee or subgrantee by other public agencies and institutions, and private
organizations and individuals. When authorized by Federal legislation, Federal funds
received from other assistance agreements may be considered as grantee or subgrantee cash
contributions.
Contract means (except as used in the definitions for grant and subgrant in this section and
except where qualified by Federal) a procurement contract under a grant or subgrant, and
means a procurement subcontract under a contract.
Cost sharing or matching means the value of the third party in-kind contributions and the
portion of the costs of a federally assisted project or program not borne by the Federal
Government.
Cost-type contract means a contract or subcontract under a grant in which the contractor or
subcontractor is paid on the basis of the costs it incurs, with or without a fee.
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Equipment means tangible, nonexpendable, personal property having a useful life of more
than one year and an acquisition cost of $5,000 or more per unit. A grantee may use its own
definition of equipment provided that such definition would at least include all equipment
defined above.
Expenditure report means: (1) For nonconstruction grants, the SF-269 "Financial Status
Report" (or other equivalent report); (2) for construction grants, the SF-271 "Outlay Report
and Request for Reimbursement" (or other equivalent report).
Federally recognized Indian tribal government means the governing body or a governmental
agency of any Indian tribe, band, nation, or other organized group or community (including
any Native village as defined in section 3 of the Alaska Native Claims Settlement Act, 85
Stat 688) certified by the Secretary of the Interior as eligible for the special programs and
services provided by him through the Bureau of Indian Affairs.
Government means a State or local government or a federally recognized Indian tribal
government.
Grant means an award of financial assistance, including cooperative agreements, in the form
of money, or property in lieu of money, by the Federal Government to an eligible grantee.
The term does not include technical assistance which provides services instead of money, or
other assistance in the form of revenue sharing, loans, loan guarantees, interest subsidies,
insurance, or direct appropriations. Also, the term does not include assistance, such as a
fellowship or other lump sum award, which the grantee is not required to account for.
Grantee means the government to which a grant is awarded and which is accountable for the
use of the funds provided. The grantee is the entire legal entity even if only a particular
component of the entity is designated in the grant award document.
Local government means a county, municipality, city, town, township, local public authority
(including any public and Indian housing agency under the United States Housing Act of
1937) school district, special district, intrastate district, council of governments (whether or
not incorporated as a nonprofit corporation under State law), any other regional or interstate
government entity, or any agency or instrumentality of a local government.
Obligations means the amounts of orders placed, contracts and subgrants awarded, goods and
services received, and similar transactions during a given period that will require payment by
the grantee during the same or a future period.
OMB means the U.S. Office of Management and Budget.
Outlays (expenditures) mean charges made to the project or program. They may be reported
on a cash or accrual basis. For reports prepared on a cash basis, outlays are the sum of actual
cash disbursement for direct charges for goods and services, the amount of indirect expense
incurred, the value of in-kind contributions applied, and the amount of cash advances and
payments made to contractors and subgrantees. For reports prepared on an accrued
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expenditure basis, outlays are the sum of actual cash disbursements, the amount of indirect
expense incurred, the value of in-kind contributions applied, and the new increase (or
decrease) in the amounts owed by the grantee for goods and other property received, for
services performed by employees, contractors, subgrantees, subcontractors, and other payees,
and other amounts becoming owed under programs for which no current services or
performance are required, such as annuities, insurance claims, and other benefit payments.
Percentage of completion method refers to a system under which payments are made for
construction work according to the percentage of completion of the work, rather than to the
grantee's cost incurred.
Prior approval means documentation evidencing consent prior to incurring specific cost.
Real property means land, including land improvements, structures, and appurtenances
thereto, excluding movable machinery and equipment.
Share, when referring to the awarding agency's portion of real property, equipment or
supplies, means the same percentage as the awarding agency's portion of the acquiring party's
total costs under the grant to which the acquisition costs under the grant to which the
acquisition cost of the property was charged. Only costs are to be counted—not the value of
third-party in-kind contributions.
State means any of the several States of the United States, the District of Columbia, the
Commonwealth of Puerto Rico, any territory, or possession of the United States, or any
agency or instrumentality of a State exclusive of local governments. The term does not
include any public and Indian housing agency under United States Housing Act of 1937.
Subgrant means an award of financial assistance in the form of money, or property in lieu of
money, made under a grant by a grantee to an eligible subgrantee. The term includes
financial assistance when provided by contractual legal agreement, but does not include
procurement purchases, nor does it include any form of assistance which is excluded from
the definition of grant in this part.
Subgrantee means the government or other legal entity to which a subgrant is awarded and
which is accountable to the grantee for the use of the funds provided.
Supplies means all tangible personal property other than equipment as defined in this part.
Suspension means depending on the context, either (1) temporary withdrawal of the authority
to obligate grant funds pending corrective action by the grantee or subgrantee or a decision to
terminate the grant, or (2) an action taken by a suspending official in accordance with agency
regulations implementing E.O. 12549 to immediately exclude a person from participating in
grant transactions for a period, pending completion of an investigation and such legal or
debarment proceedings as may ensue.
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Termination means permanent withdrawal of the authority to obligate previously-awarded
grant funds before that authority would otherwise expire. It also means the voluntary
relinquishment of that authority by the grantee or subgrantee. Termination does not include:
(1) Withdrawal of funds awarded on the basis of the grantee's underestimate of the
unobligated balance in a prior period;
(2) Withdrawal of the unobligated balance as of the expiration of a grant;
(3) Refusal to extend a grant or award additional funds, to make a competing or
noncompeting continuation, renewal, extension, or supplemental award; or
(4) Voiding of a grant upon determination that the award was obtained fraudulently, or was
otherwise illegal or invalid from inception.
Terms of a grant or subgrant mean all requirements of the grant or subgrant, whether in
statute, regulations, or the award document.
Third party in-kind contributions mean property or services which benefit a federally assisted
project or program and which are contributed by non-Federal third parties without charge to
the grantee, or a cost-type contractor under the grant agreement.
Unliquidated obligations for reports prepared on a cash basis mean the amount of obligations
incurred by the grantee that has not been paid. For reports prepared on an accrued
expenditure basis, they represent the amount of obligations incurred by the grantee for which
an outlay has not been recorded.
Unobligated balance means the portion of the funds authorized by the Federal agency that
has not been obligated by the grantee and is determined by deducting the cumulative
obligations from the cumulative funds authorized.
§31.4 Applicability.
(a) General. Subparts A-D of this part apply to all grants and sub grants to governments,
except where inconsistent with Federal statutes or with regulations authorized in accordance
with the exception provision of §31.6, or:
(1) Grants and subgrants to State and local institutions of higher education or State and local
hospitals.
(2) The block grants authorized by the Omnibus Budget Reconciliation Act of 1981
(Community Services; Preventive Health and Health Services; Alcohol, Drug Abuse, and
Mental Health Services; Maternal and Child Health Services; Social Services; Low-Income
Home Energy Assistance; States' Program of Community Development Block Grants for
Small Cities; and Elementary and Secondary Education other than programs administered by
the Secretary of Education under Title V, Subtitle D, Chapter 2, Section 583—the Secretary's
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discretionary grant program) and Titles I-III of the Job Training Partnership Act of 1982 and
under the Public Health Services Act (Section 1921), Alcohol and Drug Abuse Treatment
and Rehabilitation Block Grant and Part C of Title V, Mental Health Service for the
Homeless Block Grant).
(3) Entitlement grants to carry out the following programs of the Social Security Act:
(i) Aid to Needy Families with Dependent Children (Title IV-A of the Act, not including the
Work Incentive Program (WIN) authorized by section 402(a)19(G); HHS grants for WIN are
subject to this part);
(ii) Child Support Enforcement and Establishment of Paternity (Title IV-D of the Act);
(iii) Foster Care and Adoption Assistance (Title IV-E of the Act);
(iv) Aid to the Aged, Blind, and Disabled (Titles I, X, XIV, and XVI-AABD of the Act); and
(v) Medical Assistance (Medicald) (Title XIX of the Act) not including the State Medicaid
Fraud Control program authorized by section 1903(a)(6)(B).
(4) Entitlement grants under the following programs of The National School Lunch Act:
(i) School Lunch (section 4 of the Act),
(ii) Commodity Assistance (section 6 of the Act),
(iii) Special Meal Assistance (section 11 of the Act),
(iv) Summer Food Service for Children (section 13 of the Act), and
(v) Child Care Food Program (section 17 of the Act).
(5) Entitlement grants under the following programs of The Child Nutrition Act of 1966:
(i) Special Milk (section 3 of the Act), and
(ii) School Breakfast (section 4 of the Act).
(6) Entitlement grants for State Administrative expenses under The Food Stamp Act of 1977
(section 16 of the Act).
(7) A grant for an experimental, pilot, or demonstration project that is also supported by a
grant listed in paragraph (a)(3) of this section;
(8) Grant funds awarded under subsection 412(e) of the Immigration and Nationality Act (8
U.S.C. 1522(e)) and subsection 501(a) of the Refugee Education Assistance Act of 1980
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(Pub. L. 96-422, 94 Stat. 1809), for cash assistance, medical assistance, and supplemental
security income benefits to refugees and entrants and the administrative costs of providing
the assistance and benefits;
(9) Grants to local education agencies under 20 U.S.C. 236 through 241-1 (a), and 242
through 244 (portions of the Impact Aid program), except for 20 U.S.C. 238(d)(2)(c) and
240(f) (Entitlement Increase for Handicapped Children); and
(10) Payments under the Veterans Administration's State Home Per Diem Program (38
U.S.C. 641(a)).
(b) Entitlement programs. Entitlement programs enumerated above in §31.4(a) (3) through
(8) are subject to subpart E.
§ 31.5 Effect on other issuances.
All other grants administration provisions of codified program regulations, program manuals,
handbooks and other non-regulatory materials which are inconsistent with this part are
superseded, except to the extent they are required by statute, or authorized in accordance with
the exception provision in §31.6.
§31.6 Additions and exceptions.
(a) For classes of grants and grantees subject to this part, Federal agencies may not impose
additional administrative requirements except in codified regulations published in the Federal
Register.
(b) Exceptions for classes of grants or grantees may be authorized only by OMB.
(c) Exceptions on a case-by-case basis and for subgrantees may be authorized by the affected
Federal agencies.
(1) In the Environmental Protection Agency, the Director, Grants Administration Division, is
authorized to grant the exceptions.
(2) [Reserved]
(d) The EPA Director is also authorized to approve exceptions, on a class or an individual
case basis, to EPA program—specific assistance regulations other than those which
implement statutory and executive order requirements.
[53 FR 8068 and 8087, Mar. 11, 1988, and amended at 53 FR 8075, Mar. 11, 1988]
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Subpart B—Pre-Award Requirements
§ 31.10 Forms for applying for grants.
(a) Scope. (1) This section prescribes forms and instructions to be used by governmental
organizations (except hospitals and institutions of higher education operated by a
government) in applying for grants. This section is not applicable, however, to formula grant
programs which do not require applicants to apply for funds on a project basis.
(2) This section applies only to applications to Federal agencies for grants, and is not
required to be applied by grantees in dealing with applicants for subgrants. However,
grantees are encouraged to avoid more detailed or burdensome application requirements for
subgrants.
(b) Authorized forms and instructions for governmental organizations. (1) In applying for
grants, applicants shall only use standard application forms or those prescribed by the
granting agency with the approval of OMB under the Paperwork Reduction Act of 1980.
(2) Applicants are not required to submit more than the original and two copies of pre-
applications or applications.
(3) Applicants must follow all applicable instructions that bear OMB clearance numbers.
Federal agencies may specify and describe the programs, functions, or activities that will be
used to plan, budget, and evaluate the work under a grant. Other supplementary instructions
may be issued only with the approval of OMB to the extent required under the Paperwork
Reduction Act of 1980. For any standard form, except the SF-424 face sheet, Federal
agencies may shade out or instruct the applicant to disregard any line item that is not needed.
(4) When a grantee applies for additional funding (such as a continuation or supplemental
award) or amends a previously submitted application, only the affected pages need be
submitted. Previously submitted pages with information that is still current need not be
resubmitted.
§31.11 State plans.
(a) Scope. The statutes for some programs require States to submit plans before receiving
grants. Under regulations implementing Executive Order 12372, "Intergovernmental Review
of Federal Programs," States are allowed to simplify, consolidate, and substitute plans. This
section contains additional provisions for plans that are subject to regulations implementing
the Executive Order.
(b} Requirements. A State need meet only Federal administrative or programmatic
requirements for a plan that are in statutes or codified regulations.
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(c) Assurances. In each plan the State will include an assurance that the State shall comply
with all applicable Federal statutes and regulations in effect with respect to the periods for
which it receives grant funding. For this assurance and other assurances required in the plan,
the State may:
(1) Cite by number the statutory or regulatory provisions requiring the assurances and affirm
that it gives the assurances required by those provisions,
(2) Repeat the assurance language in the statutes or regulations, or
(3) Develop its own language to the extent permitted by law.
(d) Amendments. A State will amend a plan whenever necessary to reflect: (1) New or
revised Federal statutes or regulations or (2) a material change in any State law, organization,
policy, or State agency operation. The State will obtain approval for the amendment and its
effective date but need submit for approval only the amended portions of the plan.
§ 31.12 Special grant or subgrant conditions for "high-risk" grantees.
(a) A grantee or subgrantee may be considered "high risk" if an awarding agency determines
that a grantee or subgrantee:
(1) Has a history of unsatisfactory performance, or
(2) Is not financially stable, or
(3) Has a management system which does not meet the management standards set forth in
this part, or
(4) Has not conformed to terms and conditions of previous awards, or
(5) Is otherwise not responsible; and if the awarding agency determines that an award will be
made, special conditions and/or restrictions shall correspond to the high risk condition and
shall be included in the award.
(b) Special conditions or restrictions may include:
(1) Payment on a reimbursement basis;
(2) Withholding authority to proceed to the next phase until receipt of evidence of acceptable
performance within a given funding period;
(3) Requiring additional, more detailed financial reports;
(4) Additional project monitoring;
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(5) Requiring the grantee or subgrantee to obtain technical or management assistance; or
(6) Establishing additional prior approvals.
(c) If an awarding agency decides to impose such conditions, the awarding official will notify
the grantee or subgrantee as early as possible, in writing, of:
(1) The nature of the special conditions/restrictions;
(2) The reason(s) for imposing them;
(3) The corrective actions which must be taken before they will be removed and the time
allowed for completing the corrective actions and
(4) The method of requesting reconsideration of the conditions/restrictions imposed.
§ 31.13 Principal environmental statutory provisions applicable to EPA assistance
awards.
Grantees shall comply with all applicable 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-3(e)).
[53 FR 8075, Mar. 11, 1988]
Subpart C—Post-Award Requirements
Financial Administration
§ 31.20 Standards for financial management systems.
(a) A State must expand and account for grant funds in accordance with State laws and
procedures for expending and accounting for its own funds. Fiscal control and accounting
procedures of the State, as well as its subgrantees and cost-type contractors, must be
sufficient to—
(1) Permit preparation of reports required by this part and the statutes authorizing the grant,
and
(2) Permit the tracing of funds to a level of expenditures adequate to establish that such funds
have not been used in violation of the restrictions and prohibitions of applicable statutes.
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(b) The financial management systems of other grantees and subgrantees must meet the
following standards:
(I) Financial reporting. Accurate, current, and complete disclosure of the financial results of
financially assisted activities must be made in accordance with the financial reporting
requirements of the grant or subgrant.
(2) Accounting records. Grantees and subgrantees must maintain records which adequately
identify the source and application of funds provided for financially-assisted activities. These
records must contain information pertaining to grant or subgrant awards and authorizations,
obligations, unobligated balances, assets, liabilities, outlays or expenditures, and income.
(3) Internal control. Effective control and accountability must be maintained for all grant and
subgrant cash, real and personal property, and other assets. Grantees and subgrantees must
adequately safeguard all such property and must assure that it is used solely for authorized
purposes.
(4) Budget control. Actual expenditures or outlays must be compared with budgeted amounts
for each grant or subgrant. Financial information must be related to performance or
productivity data, including the development of unit cost information whenever appropriate
or specifically required in the grant or subgrant agreement. If unit cost data are required,
estimates based on available documentation will be accepted whenever possible.
(5) Allowable cost. Applicable OMB cost principles, agency program regulations, and the
terms of grant and subgrant agreements will be followed in determining the reasonableness,
allowability, and allocability of costs.
(6) Source documentation. Accounting records must be supported by such source
documentation as cancelled checks, paid bills, payrolls, time and attendance records, contract
and subgrant award documents, etc.
(7) Cash management. Procedures for minimizing the time elapsing between the transfer of
funds from the U.S. Treasury and disbursement by grantees and subgrantees must be
followed whenever advance payment procedures are used. Grantees must establish
reasonable procedures to ensure the receipt of reports on subgrantees' cash balances and cash
disbursements in sufficient time to enable them to prepare complete and accurate cash
transactions reports to the awarding agency. When advances are made by 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 drawdowns by their
subgrantees to assure that they conform substantially to the same standards of timing and
amount as apply to advances to the grantees.
(c) An awarding agency may review the adequacy of the financial management system of
any applicant for financial assistance as part of a preaward review or at any time subsequent
to award.
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§31.21 Payment.
(a) Scope. This section prescribes the basic standard and the methods under which a Federal
agency will make payments to grantees, and grantees will make payments to subgrantees and
contractors.
(b) Basic standard. Methods and procedures for payment shall minimize the time elapsing
between the transfer of funds and disbursement by the grantee or subgrantee, in accordance
with Treasury regulations at 31 CFR Part 205.
(c) Advances. Grantees and subgrantees shall be paid in advance, provided they maintain or
demonstrate the willingness and ability to maintain procedures to minimize the time elapsing
between the transfer of the funds and their disbursement by the grantee or subgrantee.
(d) Reimbursement. Reimbursement shall be the preferred method when the requirements in
paragraph (c) of this section are not met. Grantees and subgrantees may also be paid by
reimbursement for any construction grant. Except as otherwise specified in regulation,
Federal agencies shall not use the percentage of completion method to pay construction
grants. The grantee or subgrantee may use that method to pay its construction contractor, and
if it does, the awarding agency's payments to the grantee or subgrantee will be based on the
grantee's or subgrantee's actual rate of disbursement.
(e) Working capital advances. If a grantee cannot meet the criteria for advance payments
described in paragraph (c) of this section, and the Federal agency has determined that
reimbursement is not feasible because the grantee lacks sufficient working capital, the
awarding agency may provide cash or a working capital advance basis. Under this procedure
the awarding agency shall advance cash to the grantee to cover its estimated disbursement
needs for an initial period generally geared to the grantee's disbursing cycle. Thereafter, the
awarding agency shall reimburse the grantee for its actual cash disbursements. The working
capital advance method of payment shall not be used by grantees or subgrantees if the reason
for using such method is the unwillingness or inability of the grantee to provide timely
advances to the subgrantee to meet the subgrantee's actual cash disbursements.
(f) Effect of program income, refunds, and audit recoveries on payment. (1) Grantees and
subgrantees shall disburse repayments to and interest earned on a revolving fund before
requesting additional cash payments for the same activity.
(2) Except as provided in paragraph (f)(l) of this section, grantees and subgrantees shall
disburse program income, rebates, refunds, contract settlements, audit recoveries and interest
earned on such funds before requesting additional cash payments.
(g) Withholding payments. (1) Unless otherwise required by Federal statute, awarding
agencies shall not withhold payments for proper charges incurred by grantees or subgrantees
unless—
(i) The grantee or subgrantee has failed to comply with grant award conditions or
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(ii) The grantee or subgrantee is indebted to the United States.
(2) Cash withheld for failure to comply with grant award condition, but without suspension
of the grant, shall be released to the grantee upon subsequent compliance. When a grant is
suspended, payment adjustments will be made in accordance with §31.43(c).
(3) A Federal agency shall not make payment to grantees for amounts that are withheld by
grantees or subgrantees from payment to contractors to assure satisfactory completion of
work. Payments shall be made by the Federal agency when the grantees or subgrantees
actually disburse the withheld funds to the contractors or to escrow accounts established to
assure satisfactory completion of work.
(h) Cash depositories. (1) Consistent with the national goal of expanding the opportunities
for minority business enterprises, grantees and subgrantees are encouraged to use minority
banks (a bank which is owned at least 50 percent by minority group members). A list of
minority owned banks can be obtained from the Minority Business Development Agency,
Department of Commerce, Washington, DC 20230.
(2) A grantee or subgrantee shall maintain a separate bank account only when required by
Federal-State agreement.
(i) Interest earned on advances. Except for interest earned on advances of funds exempt
under the Intergovernmental Cooperation Act (31 U.S.C. 6501 et seq. ) and the Indian Self-
Determination Act (23 U.S.C. 450), grantees and subgrantees shall promptly, but at least
quarterly, remit interest earned on advances to the Federal agency. The grantee or subgrantee
may keep interest amounts up to $100 per year for administrative expenses.
§31.22 Allowable costs.
(a) Limitation on use of funds. Grant funds may be used only for:
(1) The allowable costs of the grantees, subgrantees and cost-type contractors, including
allowable costs in the form of payments to fixed-price contractors; and
(2) Reasonable fees or profit to cost-type contractors but not any fee or profit (or other
increment above allowable costs) to the grantee or subgrantee.
(Jo) Applicable cost principles. For each kind of organization, there is a set of Federal
principles for determining allowable costs. Allowable costs will be determined in accordance
with the cost principles applicable to the organization incurring the costs. The following chart
lists the kinds of organizations and the applicable cost principles.
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For the costs of a—
State, local or Indian tribal government
Private nonprofit organization other than an (1)
institution of higher education, (2) hospital, or (3)
organization named in OMB Circular A-122 as not
subject to that circular
Educational institutions.
For-profit organization other than a hospital and
an organization named in OBM Circular A-122 as
not subject to that circular
Use the principles in-
ch/IB Circular A-87.
OBM Circular A-122.
OMB Circular A-21.
48 CFR part 31, Contract Cost Principles and
Procedures, or uniform cost accounting
standards that comply with cost principles
acceptable to the Federal agency.
§ 31.23 Period of availability of funds.
(a) General. Where a funding period is specified, a grantee may charge to the award only
costs resulting from obligations of the funding period unless carryover of unobligated
balances is permitted, in which case the carryover balances may be charged for costs
resulting from obligations of the subsequent funding period.
(b) Liquidation of obligations. A grantee must liquidate all obligations incurred under the
award not later than 90 days after the end of the funding period (or as specified in a program
regulation) to coincide with the submission of the annual Financial Status Report (SF-269).
The Federal agency may extend this deadline at the request of the grantee.
§ 31.24 Matching or cost sharing.
(a) Basic rule: Costs and contributions acceptable. With the qualifications and exceptions
listed in paragraph (b) of this section, a matching or cost sharing requirement may be
satisfied by either or both of the following:
(1) Allowable costs incurred by the grantee, subgrantee or a cost-type contractor under the
assistance agreement. This includes allowable costs borne by non-Federal grants or by other
cash donations from non-Federal third parties.
(2) The value of third party in-kind contributions applicable to the period to which the cost
sharing or matching requirements applies.
(b) Qualifications and exceptions — (1) Costs borne by other Federal grant agreements.
Except as provided by Federal statute, a cost sharing or matching requirement may not be
met by costs borne by another Federal grant. This prohibition does not apply to income
earned by a grantee or subgrantee from a contract awarded under another Federal grant.
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(2) General revenue sharing. For the purpose of this section, general revenue sharing funds
distributed under 31 U.S.C. 6702 are not considered Federal grant funds.
(3) Cost or contributions counted towards other Federal costs-sharing requirements. Neither
costs nor the values of third party in-kind contributions may count towards satisfying a cost
sharing or matching requirement of a grant agreement if they have been or will be counted
towards satisfying a cost sharing or matching requirement of another Federal grant
agreement, a Federal procurement contract, or any other award of Federal funds.
(4) Costs financed by program income. Costs financed by program income, as defined in
§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 described in §31.25(g).)
(5) Services or property financed by income earned by contractors. Contractors under a grant
may earn income from the activities carried out under the contract in addition to the amounts
earned from the party awarding the contract. No costs of services or property supported by
this income may count toward satisfying a cost sharing or matching requirement unless other
provisions of the grant agreement expressly permit this kind of income to be used to meet the
requirement.
(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 must show how the value placed on third
party in-kind contributions was derived. To the extent feasible, volunteer services will be
supported by the same methods that the organization uses to support the allocability of
regular personnel costs.
(7) Special standards for third party 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) Some third party in-kind contributions are goods and services that, if the grantee,
subgrantee, or contractor receiving the contribution had to pay for them, the payments would
have been an indirect costs. Costs sharing or matching credit for such contributions shall be
given only if the grantee, subgrantee, or contractor has established, along with its regular
indirect cost rate, a special rate for allocating to individual projects or programs the value of
the contributions.
(iii) A third party in-kind contribution to a fixed-price contract may count towards satisfying
a cost sharing or matching requirement only if it results in:
(A) An increase in the services or property provided under the contract (without additional
cost to the grantee or subgrantee) or
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(B) A cost savings to the grantee or subgrantee.
(iv) The values placed on third party in-kind contributions for cost sharing or matching
purposes will conform to the rules in the succeeding sections of this part. If a third party in-
kind contribution is a type not treated in those sections, the value placed upon it shall be fair
and reasonable.
(c) Valuation of donated services — (1) Volunteer services. Unpaid services provided to a
grantee or subgrantee by individuals will be valued at rates consistent with those ordinarily
paid for similar work in the grantee's or subgrantee's organization. If the grantee or
subgrantee does not have employees performing similar work, the rates will be consistent
with those ordinarily paid by other employers for similar work in the same labor market. In
either case, a reasonable amount for fringe benefits may be included in the valuation.
(2) Employees of other organizations. When an employer other than a grantee, subgrantee, or
cost-type contractor furnishes free of charge the services of an employee in the employee's
normal line of work, the services will be valued at the employee's regular rate of pay
exclusive of the employee's fringe benefits and overhead costs. If the services are in a
different line of work, paragraph (c)(l) of this section applies.
(d) Valuation of third party donated supplies and loaned equipment or space. (1) If a third
party donates supplies, the contribution will be valued at the market value of the supplies at
the time of donation.
(2) If a third party donates the use of equipment or space in a building but retains title, the
contribution will be valued at the fair rental rate of the equipment or space.
(e) Valuation of third party donated equipment, buildings, and land. If a third party donates
equipment, buildings, or land, and title passes to a grantee or subgrantee, the treatment of the
donated property will depend upon the purpose of the grant or sub grant, as follows:
(I) Awards for capital expenditures. If the purpose of the grant or subgrant is to assist the
grantee or subgrantee in the acquisition of property, the market value of that property at the
time of donation may be counted as cost sharing or matching,
(2) Other awards. If assisting in the acquisition of property is not the purpose of the grant or
subgrant, paragraphs (e)(2)(i) and (ii) of this section apply:
(i) If approval is obtained from the awarding agency, the market value at the time of donation
of the donated equipment or buildings and the fair rental rate of the donated land may be
counted as cost sharing or matching. In the case of a subgrant, the terms of the grant
agreement may require that the approval be obtained from the Federal agency as well as the
grantee. In all cases, the approval may be given only if a purchase of the equipment or rental
of the land would be approved as an allowable direct cost. If any part of the donated property
was acquired with Federal funds, only the non-federal share of the property may be counted
as cost-sharing or matching.
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(ii) If approval is not obtained under paragraph (e)(2)(i) of this section, no amount may be
counted for donated land, and only depreciation or use allowances may be counted for
donated equipment and buildings. The depreciation or use allowances for this property are
not treated as third party in-kind contributions. Instead, they are treated as costs incurred by
the grantee or subgrantee. They are computed and allocated (usually as indirect costs) in
accordance with the cost principles specified in §31.22, in the same way as depreciation or
use allowances for purchased equipment and buildings. The amount of depreciation or use
allowances for donated equipment and buildings is based on the property's market value at
the time it was donated.
(f) Valuation of grantee or subgrantee donated real property for construction/acquisition. If
a grantee or subgrantee donates real property for a construction or facilities acquisition
project, the current market value of that property may be counted as cost sharing or
matching. If any part of the donated property was acquired with Federal funds, only the non-
federal share of the property may be counted as cost sharing or matching.
(g) Appraisal of real property. In some cases under paragraphs (d), (e) and (f) of this section,
it will be necessary to establish the market value of land or a building or the fair rental rate of
land or of space in a building. In these cases, the Federal agency may require the market
value or fair rental value be set by an independent appraiser, and that the value or rate be
certified by the grantee. This requirement will also be imposed by the grantee on subgrantees.
§ 31.25 Program income.
(a) General. Grantees are encouraged to earn income to defray program costs. Program
income includes income from fees for services performed, from the use or rental of real or
personal property acquired with grant funds, from the sale of commodities or items fabricated
under a grant agreement, and from payments of principal and interest on loans made with
grant funds. Except as otherwise provided in regulations of the Federal agency, program
income does not include interest on grant funds, rebates, credits, discounts, refunds, etc. and
interest earned on any of them.
(b) Definition of program income. Program income means gross income received by the
grantee or subgrantee directly generated by a grant supported activity, or earned only as a
result of the grant agreement during the grant period. "During the grant period" is the time
between the effective date of the award and the ending date of the award reflected in the final
financial report.
(c) Cost of generating program income. If authorized by Federal regulations or the grant
agreement, costs incident to the generation of program income may be deducted from gross
income to determine program income.
(d) Governmental revenues. Taxes, special assessments, levies, fines, and other such
revenues raised by a grantee or subgrantee are not program income unless the revenues are
specifically identified in the grant agreement or Federal agency regulations as program
income.
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(e) Royalties. Income from royalties and license fees for copyrighted material, patents, and
inventions developed by a grantee or subgrantee is program income only if the revenues are
specifically identified in the grant agreement or Federal agency regulations as program
income. (See §31.34.)
(f) Property. Proceeds from the sale of real property or equipment will be handled in
accordance with the requirements of §§31.31 and 31.32.
(g) Use of program income. Program income shall be deducted from outlays which may be
both Federal and non-Federal as described below, unless the Federal agency regulations or
the grant agreement specify another alternative (or a combination of the alternatives). In
specifying alternatives, the Federal agency may distinguish between income earned by the
grantee and income earned by subgrantees and between the sources, kinds, or amounts of
income. When Federal agencies authorize the alternatives in paragraphs (g) (2) and (3) of this
section, program income in excess of any limits stipulated shall also be deducted from
outlays.
(1) Deduction. Ordinarily program income shall be deducted from total allowable costs to
determine the net allowable costs. Program income shall be used for current costs unless the
Federal agency authorizes otherwise. Program income which the grantee did not anticipate at
the time of the award shall be used to reduce the Federal agency and grantee contributions
rather than to increase the funds committed to the project.
(2) Addition. When authorized, program income may be added to the funds committed to the
grant agreement by the Federal agency and the grantee. The program income shall be used
for the purposes and under the conditions of the grant agreement.
(3) Cost sharing or matching. When authorized, program income may be used to meet the
cost sharing or matching requirement of the grant agreement. The amount of the Federal
grant award remains the same.
(h) Income after the award period. There are no Federal requirements governing the
disposition of program income earned after the end of the award period (i.e., until the ending
date of the final financial report, see paragraph (a) of this section), unless the terms of the
agreement or the Federal agency regulations provide otherwise.
§ 31.26 Non-Federal audit.
(a) Basic rule. Grantees and subgrantees are responsible for obtaining audits in accordance
with the Single Audit Act Amendments of 1996 (31 U.S.C. 7501-7507) and revised OMB
Circular A-133, "Audits of States, Local Governments, and Non-Profit Organizations." The
audits shall be made by an independent auditor in accordance with generally accepted
government auditing standards covering financial audits.
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(b) Subgrantees. State or local governments, as those terms are defined for purposes of the
Single Audit Act Amendments of 1996, that provide Federal awards to a subgrantee, which
expends $300,000 or more (or other amount as specified by OMB) in Federal awards in a
fiscal year, shall:
(1) Determine whether State or local sub grantees have met the audit requirements of the Act
and whether subgrantees covered by OMB Circular A-l 10, "Uniform Administrative
Requirements for Grants and Agreements with Institutions of Higher Education, Hospitals,
and Other Non-Profit Organizations," have met the audit requirements of the Act.
Commercial contractors (private for-profit and private and governmental organizations)
providing goods and services to State and local governments are not required to have a single
audit performed. State and local governments should use their own procedures to ensure that
the contractor has complied with laws and regulations affecting the expenditure of Federal
funds;
(2) Determine whether the subgrantee spent Federal assistance funds provided in accordance
with applicable laws and regulations. This may be accomplished by reviewing an audit of the
subgrantee made in accordance with the Act, Circular A-l 10, or through other means (e.g.,
program reviews) if the subgrantee has not had such an audit;
(3) Ensure that appropriate corrective action is taken within six months after receipt of the
audit report in instance of noncompliance with Federal laws and regulations;
(4) Consider whether subgrantee audits necessitate adjustment of the grantee's own records;
and
(5) Require each subgrantee to permit independent auditors to have access to the records and
financial statements.
(c) Auditor selection. In arranging for audit services, §31.36 shall be followed.
[53 FR 8075, 8087, Mar. 11, 1988, as amended at 62 FR 45939, 45944, Aug. 29, 1997]
Changes, Property, and Subawards
§31.30 Changes.
(a) General. Grantees and subgrantees are permitted to re-budget within the approved direct
cost budget to meet unanticipated requirements and may make limited program changes to
the approved project. However, unless waived by the awarding agency, certain types of post-
award changes in budgets and projects shall require the prior written approval of the
awarding agency.
(b) Relation to cost principles. The applicable cost principles (see §31.22) contain
requirements for prior approval of certain types of costs. Except where waived, those
requirements apply to all grants and subgrants even if paragraphs (c) through (f) of this
section do not.
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(c) Budget changes — (1) Noncomtructionprojects. Except as stated in other regulations or
an award document, grantees or sub grantees shall obtain the prior approval of the awarding
agency whenever any of the following changes is anticipated under a nonconstruction award:
(i) Any revision which would result in the need for additional funding.
(ii) Unless waived by the awarding agency, cumulative transfers among direct cost
categories, or, if applicable, among separately budgeted programs, projects, functions, or
activities which exceed or are expected to exceed ten percent of the current total approved
budget, whenever the awarding agency's share exceeds $100,000.
(iii) Transfer of funds allotted for training allowances (i.e., from direct payments to trainees
to other expense categories).
(2) Construction projects. Grantees and subgrantees shall obtain prior written approval for
any budget revision which would result in the need for additional funds.
(3) Combined construction and nonconstruction projects. When a grant or subgrant provides
funding for both construction and nonconstruction activities, the grantee or subgrantee must
obtain prior written approval from the awarding agency before making any fund or budget
transfer from nonconstruction to construction or vice versa.
(d) Programmatic changes. Grantees or subgrantees must obtain the prior approval of the
awarding agency whenever any of the following actions is anticipated:
(1) Any revision of the scope or objectives of the project (regardless of whether there is an
associated budget revision requiring prior approval).
(2) Need to extend the period of availability of funds.
(3) Changes in key persons in cases where specified in an application or a grant award. In
research projects, a change in the project director or principal investigator shall always
require approval unless waived by the awarding agency.
(4) Under nonconstruction projects, contracting out, subgranting (if authorized by law), or
otherwise obtaining the services of a third party to perform activities which are central to the
purposes of the award. This approval requirement is in addition to the approval requirements
of §31.36 but does not apply to the procurement of equipment, supplies, and general support
services.
(e) Additional prior approval requirements. The awarding agency may not require prior
approval for any budget revision which is not described in paragraph (c) of this section.
(f) Requesting prior approval. (1) A request for prior approval of any budget revision will be
in the same budget formal the grantee used in its application and shall be accompanied by a
narrative justification for the proposed revision.
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(2) A request for a prior approval under the applicable Federal cost principles (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 request in
writing. A grantee will not approve any budget or project revision which is inconsistent with
the purpose or terms and conditions of the Federal grant to the grantee. If the revision,
requested by the subgrantee would result in a change to the grantee's approved project which
requires Federal prior approval, the grantee will obtain the Federal agency's approval before
approving the subgrantee's request.
§31.31 Real property.
(a) Title. Subject to the obligations and conditions set forth in this section, title to real
property acquired under a grant or subgrant will vest upon acquisition in the grantee or
subgrantee respectively.
(b) Use. Except as otherwise provided by Federal statutes, real property will be used for the
originally authorized purposes as long as needed for that purposes, and the grantee or
subgrantee shall not dispose of or encumber its title or other interests.
(c) Disposition. When real property is no longer needed for the originally authorized purpose,
the grantee or subgrantee will request disposition instructions from the awarding agency. The
instructions will provide for one of the following alternatives:
(1) Retention of title. Retain title after compensating the awarding agency. The amount paid
to the awarding agency will be computed by applying the awarding agency's percentage of
participation in the cost of the original purchase to the fair market value of the property.
However, in those situations where a grantee or subgrantee is disposing of real property
acquired with grant funds and acquiring replacement real property under the same program,
the net proceeds from the disposition may be used as an offset to the cost of the replacement
property.
(2) Sale of property. Sell the property and compensate the awarding agency. The amount due
to the awarding agency will be calculated by applying the awarding agency's percentage of
participation in the cost of the original purchase to the proceeds of the sale after deduction of
any actual and reasonable selling and fixing-up expenses. If the grant is still active, the net
proceeds from sale may be offset against the original cost of the property. When a grantee or
subgrantee is directed to sell property, sales procedures shall be followed that provide for
competition to the extent practicable and result in the highest possible return.
(3) Transfer of title. Transfer title to the awarding agency or to a third-party
designated/approved by the awarding agency. The grantee or subgrantee shall be paid an
amount calculated by applying the grantee or subgrantee's percentage of participation in the
purchase of the real property to the current fair market value of the property.
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§31.32 Equipment.
(a) Title. Subject to the obligations and conditions set forth in this section, title to equipment
acquired under a grant or subgrant will vest upon acquisition in the grantee or subgrantee
respectively.
(b) States. A State will use, manage, and dispose of equipment acquired under a grant by the
State in accordance with State laws and procedures. Other grantees and subgrantees will
follow paragraphs (c) through (e) of this section.
(c) Use. (1) Equipment shall be used by the grantee or subgrantee in the program or project
for which it was acquired as long as needed, whether or not the project or program continues
to be supported by Federal funds. When no longer needed for the original program or project,
the equipment may be used in other activities currently or previously supported by a Federal
agency.
(2) The grantee or subgrantee shall also make equipment available for use on other projects
or programs currently or previously supported by the Federal Government, providing such
use will not interfere with the work on the projects or program for which it was originally
acquired. First preference for other use shall be given to other programs or projects supported
by the awarding agency. User fees should be considered if appropriate.
(3) Notwithstanding the encouragement in §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. Procedures for managing equipment (including replacement
equipment), whether acquired in whole or in part with grant funds, until disposition takes
place will, as a minimum, meet the following requirements:
(1) Property records must be maintained that include a description of the property, a serial
number or other identification number, the source of property, who holds title, the acquisition
date, and cost of the property, percentage of Federal participation in the cost of the property,
the location, use and condition of the property, and any ultimate disposition data including
the date of disposal and sale price of the property.
(2) A physical inventory of the property must be taken and the results reconciled with the
property records at least once every two years.
(3) A control system must be developed to ensure adequate safeguards to prevent loss,
damage, or theft of the property. Any loss, damage, or theft shall be investigated.
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(4) Adequate maintenance procedures must be developed to keep the property in good
condition.
(5) If the grantee or subgrantee is authorized or required to sell the property, proper sales
procedures must be established to ensure the highest possible return.
(e) Disposition. When original or replacement equipment acquired under a grant or subgrant
is no longer needed for the original project or program or for other activities currently or
previously supported by a Federal agency, disposition of the equipment will be made as
follows:
(1) Items of equipment with a current per-unit fair market value of less than $5,000 may be
retained, sold, or otherwise disposed of with no further obligation to the awarding agency.
(2) Items of equipment with a current per unit fair market value in excess of $5,000 may be
retained or sold and the awarding agency shall have a right to an amount calculated by
multiplying the current market value or proceeds from sale by the awarding agency's share of
the equipment.
(3) In cases where a grantee or subgrantee fails to take appropriate disposition actions, the
awarding agency may direct the grantee or subgrantee to take excess and disposition actions.
(f) Federal equipment. In the event a grantee or subgrantee is provided federally-owned
equipment:
(1) Title will remain vested in the Federal Government.
(2) Grantees or subgrantees will manage the equipment in accordance with Federal agency
rules and procedures, and submit an annual inventory listing.
(3) When the equipment is no longer needed, the grantee or subgrantee will request
disposition instructions from the Federal agency.
(g) Right to transfer title. The Federal awarding agency may reserve the right to transfer title
to the Federal Government or a third party named by the awarding agency when such a third
party is otherwise eligible under existing statutes. Such transfers shall be subject to the
following standards:
(1) The property shall be identified in the grant or otherwise made known to the grantee in
writing.
(2) The Federal awarding agency shall issue disposition instruction within 120 calendar days
after the end of the Federal support of the project for which it was acquired. If the Federal
awarding agency fails to issue disposition instructions within the 120 calendar-day period the
grantee shall follow 31.32(e).
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(3) When title to equipment is transferred, the grantee shall be paid an amount calculated by
applying the percentage of participation in the purchase to the current fair market value of the
property.
§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 exceeding $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.
§31.34 Copyrights.
The Federal awarding agency reserves a royalty-free, nonexclusive, and irrevocable license
to reproduce, publish, or otherwise use, and to authorize others to use, for Federal
Government purposes:
(a) The copyright in any work developed under a grant, subgrant, or contract under a grant or
subgrant; and
(b) Any rights of copyright to which a grantee, subgrantee or a contractor purchases
ownership with grant support.
§ 31.35 Subawards to debarred and suspended 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 suspended or is otherwise excluded
from or ineligible for participation in Federal assistance programs under Executive Order
12549, "Debarment and Suspension."
§31.36 Procurement.
(a) States. When procuring property and services under a grant, a State will follow the same
policies and procedures it uses for procurements from its non-Federal funds. The State will
ensure that every purchase order or other contract includes any clauses required by Federal
statutes and executive orders and their implementing regulations. Other grantees and
subgrantees will follow paragraphs (b) through (i) in this section.
(b) Procurement standards. (1) Grantees and subgrantees will use their own procurement
procedures which reflect applicable State and local laws and regulations, provided that the
procurements conform to applicable federal law, the standards identified in this section, and
if applicable, §31.38.
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(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. No
employee, officer, or agent of the grantee or subgrantee shall participate in selection, or in the
award or administration of a contract supported by Federal funds if a conflict of interest, real
or apparent, would be involved. Such a conflict would arise when:
(i) The employee, officer, or agent,
(ii) Any member of his immediate family,
(iii) His or her partner, or
(iv) An organization which employs, or is about to employ, any of the above, has a financial
or other interest in the firm selected for award. The grantee's or subgrantee's officers,
employees or agents will neither solicit nor accept gratuities, favors or anything of monetary
value from contractors, potential contractors, or parties to subagreements. Grantee and
subgrantees may set minimum rules where the financial interest is not substantial or the gift
is an unsolicited item of nominal intrinsic value. To the extent permitted by State or local law
or regulations, such standards or conduct will provide for penalties, sanctions, or other
disciplinary actions for violations of such standards by the grantee's and subgrantee's officers,
employees, or agents, or by contractors or their agents. The awarding agency may in
regulation provide additional prohibitions relative to real, apparent, or potential conflicts of
interest.
(4) Grantee and subgrantee procedures will provide for a review of proposed procurements to
avoid purchase of unnecessary or duplicative items. Consideration should be given to
consolidating or breaking out procurements to obtain a more economical purchase. Where
appropriate, an analysis will be made of lease versus purchase alternatives, and any other
appropriate analysis to determine the most economical approach.
(5) To foster greater economy and efficiency, grantees and subgrantees are encouraged to
enter into State and local intergovernmental agreements for procurement or use of common
goods and services.
(6) Grantees and subgrantees are encouraged to use Federal excess and surplus property in
lieu of purchasing new equipment and property whenever such use is feasible and reduces
project costs.
(7) Grantees and subgrantees are encouraged to use value engineering clauses in contracts for
construction projects of sufficient size to offer reasonable opportunities for cost reductions.
Value engineering is a systematic and creative analysis of each contract item or task to
ensure that its essential function is provided at the overall lower cost.
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(8) Grantees and subgrantees will make awards only to responsible contractors possessing the
ability to perform successfully under the terms and conditions of a proposed procurement.
Consideration will be given to such matters as contractor integrity, compliance with public
policy, record of past performance, and financial and technical resources.
(9) Grantees and subgrantees will maintain records sufficient to detail the significant history
of procurement. These records will include, but are not necessarily limited to the following:
rationale for the method of procurement, selection of contract type, contractor selection, or
rejection, and the basis for the contract price.
(10) Grantees and subgrantees will use time and material type contracts only—
(i) After a determination that no other contract is suitable, and
(ii) If the contract includes a ceiling price that the contractor exceeds at its own risk.
(11) Grantees and subgrantees alone will be responsible, in accordance with good
administrative practice and sound business judgment, for the settlement of all contractual and
administrative issues arising out of procurements. These issues include, but are not limited to
source evaluation, protests, disputes, and claims. These standards do not relieve the grantee
or subgrantee of any contractual responsibilities under its contracts. Federal agencies will not
substitute their judgment for that of the grantee or subgrantee unless the matter is primarily a
Federal concern. Violations of law will be referred to the local, State, or Federal authority
having proper jurisdiction.
(12) Grantees and subgrantees will have protest procedures to handle and resolve disputes
relating to their procurements and shall in all instances disclose information regarding the
protest to the awarding agency. A protestor must exhaust all administrative remedies with the
grantee and subgrantee before pursuing a protest with the Federal agency. Reviews of
protests by the Federal agency will be limited to:
(i) Violations of Federal law or regulations and the standards of this section (violations of
State or local law will be under the jurisdiction of State or local authorities) and
(ii) Violations of the grantee's or subgrantee's protest procedures for failure to review a
complaint or protest. Protests received by the Federal agency other than those specified
above will be referred to the grantee or subgrantee.
(c) Competition. (1) All procurement transactions will be conducted in a manner providing
full and open competition consistent with the standards of §31.36. Some of the situations
considered to be restrictive of competition include but are not limited to:
(i) Placing unreasonable requirements on firms in order for them to qualify to do business,
(ii) Requiring unnecessary experience and excessive bonding,
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(iii) Noncompetitive pricing practices between firms or between affiliated companies,
(iv) Noncompetitive awards to consultants that are on retainer contracts,
(v) Organizational conflicts of interest,
(vi) Specifying only a "brand name" product instead of allowing "an equal" product to be
offered and describing the performance of other relevant requirements of the procurement,
and
(vii) Any arbitrary action in the procurement process.
(2) Grantees and subgrantees will conduct procurements in a manner that prohibits the use of
statutorily or administratively imposed in-State or local geographical preferences in the
evaluation of bids or proposals, except in those cases where applicable Federal statutes
expressly mandate or encourage geographic preference. Nothing in this section preempts
State licensing laws. When contracting for architectural and engineering (A/E) services,
geographic location may be a selection criteria provided its application leaves an appropriate
number of qualified firms, given the nature and size of the project, to compete for the
contract.
(3) Grantees will have written selection procedures for procurement transactions. These
procedures will ensure that all solicitations:
(i) Incorporate a clear and accurate description of the technical requirements for the material,
product, or service to be procured. Such description shall not, in competitive procurements,
contain features which unduly restrict competition. The description may include a statement
of the qualitative nature of the material, product, or service to be procured, and when
necessary, shall set forth those minimum essential characteristics and standards to which it
must conform if it is to satisfy its intended use. Detailed product specifications should be
avoided if at all possible. When it is impractical or uneconomical to make a clear and
accurate description of the technical requirements, a "brand name or equal" description may
be used as a means to define the performance or other salient requirements of 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
qualified sources to ensure maximum open and free competition. Also, grantees and
subgrantees will not preclude potential 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 paragraphs (c)(5)(i)-(iii) of this section. Section
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215 of the Clean Water Act requires that contractors give preference 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
nondomestic material, including all costs of delivery to the construction site and any
applicable duty, whether or not assessed. 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 factors the award
official considers relevant, including:
(A) Such use is not in the public interest;
(B) The cost is unreasonable;
(C) The Agency's available resources are not sufficient to implement the provision, subject to
the Deputy Administrator's concurrence;
(D) The articles, materials or supplies of the class or kind to be used or the articles, materials
or supplies from which they are manufactured are not mined, produced or manufactured in
the United States in sufficient and reasonably available commercial quantities or satisfactory
quality for the particular project; or
(E) Application of this provision is contrary to multilateral government procurement
agreements, subject to the Deputy Administrator's concurrence.
(iii) All bidding documents, subagreements, and, if appropriate, requests for proposals must
contain the following "Buy American" provision: In accordance with section 215 of the
Clean Water Act (33 U.S.C. 1251 et seq.) and implementing EPA regulations, the contractor
agrees that preference will be given to domestic construction materials by the contractor,
subcontractors, material, men and suppliers in the performance of this subagreement.
(d) Methods of procurement to be followed— (1) Procurement by small purchase procedures.
Small purchase procedures are those relatively simple and informal procurement methods for
securing services, supplies, or other property that do not cost more than the simplified
acquisition threshold fixed at 41 U.S.C. 403(11) (currently set at $100,000). If small purchase
procedures are used, price or rate quotations shall be obtained from an adequate number of
qualified sources.
(2) Procurement by sealed bids (formal advertising). Bids are publicly solicited and a firm-
fixed-price contract (lump sum or unit price) is awarded to the responsible bidder whose bid,
conforming with all the material terms and conditions of the invitation for bids, is the lowest
in price. The sealed bid method is the preferred method for procuring construction, if the
conditions in 31.36(d)(2)(i) apply.
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(i) In order for sealed bidding to be feasible, the following conditions should be present:
(A) A complete, adequate, and realistic specification or purchase description is available;
(B) Two or more responsible bidders are willing and able to compete effectively and for the
business; and
(C) The procurement lends itself to a firm fixed price contract and the selection of the
successful bidder can be made principally on the basis of price.
(ii) If sealed bids are used, the following requirements apply:
(A) The invitation for bids will be publicly advertised and bids shall be solicited from an
adequate number of known suppliers, providing them sufficient time prior to the date set for
opening the bids;
(B) The invitation for bids, which will include any specifications and pertinent attachments,
shall define the items or services in order for the bidder to properly respond;
(C) All bids will be publicly opened at the time and place prescribed in the invitation for
bids;
(D) A firm fixed-price contract award will be made in writing to the lowest responsive and
responsible bidder. Where specified in bidding documents, factors such as discounts,
transportation cost, and life cycle costs shall be considered in determining which bid is
lowest. Payment discounts will only be used to determine the low bid when prior experience
indicates that such discounts are usually taken advantage of; and
(E) Any or all bids may be rejected if there is a sound documented reason.
(3) Procurement by competitive proposals. The technique of competitive proposals is
normally conducted with more than one source submitting an offer, and either a fixed-price
or cost-reimbursement type contract is awarded. It is generally used when conditions are not
appropriate for the use of sealed bids. If this method is used, the following requirements
apply:
(i) Requests for proposals will be publicized and identify all evaluation factors and their
relative importance. Any response to publicized requests for proposals shall be honored to
the maximum extent practical;
(ii) Proposals will be solicited from an adequate number of qualified sources;
(iii) Grantees and subgrantees will have a method for conducting technical evaluations of the
proposals received and for selecting awardees;
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(iv) Awards will be made to the responsible firm whose proposal is most advantageous to the
program, with price and other factors considered; and
(v) Grantees and subgrantees may use competitive proposal procedures for qualifications-
based procurement of architectural/engineering (A/E) professional services whereby
competitors' qualifications are evaluated and the most qualified competitor is selected,
subject to negotiation of fair and reasonable compensation. The method, where price is not
used as a selection factor, can only be used in procurement of A/E professional services. It
cannot be used to purchase other types of services though A/E firms are a potential source to
perform the proposed effort.
(4) Procurement by noncompetitive proposals is procurement through solicitation of a
proposal from only one source, or after solicitation of a number of sources, competition is
determined inadequate.
(i) Procurement by noncompetitive proposals may be used only when the award of a contract
is infeasible under small purchase procedures, sealed bids or competitive proposals and one
of the following circumstances applies:
(A) The item is available only from a single source;
(B) The public exigency or emergency for the requirement will not permit a delay resulting
from competitive solicitation;
(C) The awarding agency authorizes noncompetitive proposals; or
(D) After solicitation of a number of sources, competition is determined inadequate.
(ii) Cost analysis, i.e., verifying the proposed cost data, the projections of the data, and the
evaluation of the specific elements of costs and profits, is required.
(iii) Grantees and subgrantees may be required to submit the proposed procurement to the
awarding agency for pre-award review in accordance with paragraph (g) of this section.
(e) The new DBE Rule at 40 CFR part 33 replaced the information contained in 40 CFR
31.36(e).
(f) Contract cost and price. (1) Grantees and subgrantees must perform a cost or price
analysis in connection with every procurement action including contract modifications. The
method and degree of analysis is dependent on the facts surrounding the particular
procurement situation, but as a starting point, grantees must make independent estimates
before receiving bids or proposals. A cost analysis must be performed when the offerer is
required to submit the elements of his estimated cost, e.g., under professional, consulting,
and architectural engineering services contracts. A cost analysis will be necessary when
adequate price competition is lacking, and for sole source procurements, including contract
modifications or change orders, unless price reasonableness can be established on the basis of
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a catalog or market price of a commercial product sold in substantial quantities to the general
public or based on prices set by law or regulation. A price analysis will be used in all other
instances to determine the reasonableness of the proposed contract price.
(2) Grantees and subgrantees will negotiate profit as a separate element of the price for each
contract in which there is no price competition and in all cases where cost analysis is
performed. To establish a fair and reasonable profit, consideration will be given to the
complexity of the work to be performed, the risk borne by the contractor, the contractor's
investment, the amount of subcontracting, the quality of its record of past performance, and
industry profit rates in the surrounding geographical area for similar work.
(3) Costs or prices based on estimated costs for contracts under grants will be allowable only
to the extent that costs incurred or cost estimates included in negotiated prices are consistent
with Federal cost principles (see §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 methods of
contracting shall not be used.
(g) Awarding agency review. (1) Grantees and subgrantees must make available, upon
request of the awarding agency, technical specifications on proposed procurements where the
awarding agency believes such review is needed to ensure that the item and/or service
specified is the one being proposed for purchase. This review generally will take place prior
to the time the specification is incorporated into a solicitation document. However, if the
grantee or subgrantee desires to have the review accomplished after a solicitation has been
developed, the awarding agency may still review the specifications, with such review usually
limited to the technical aspects of the proposed purchase.
(2) Grantees and subgrantees must on request make available for awarding agency pre-award
review procurement documents, such as requests for proposals or invitations for bids,
independent cost estimates, etc. when:
(i) A grantee's or subgrantee's procurement procedures or operation fails to comply with the
procurement standards in this section; or
(ii) The procurement is expected to exceed the simplified acquisition threshold and is to be
awarded without competition or only one bid or offer is received in response to a solicitation;
or
(iii) The procurement, which is expected to exceed the simplified acquisition threshold,
specifies a "brand name" product; or
(iv) The proposed award is more than the simplified acquisition threshold and is to be
awarded to other than the apparent low bidder under a sealed bid procurement; or
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(v) A proposed contract modification changes the scope of a contract or increases the
contract amount by more than the simplified acquisition threshold.
(3) A grantee or subgrantee will be exempt from the pre-award review in paragraph (g)(2) of
this section if the awarding agency determines that its procurement systems comply with the
standards of this section.
(i) A grantee or subgrantee may request that its procurement system be reviewed by the
awarding agency to determine whether its system meets these standards in order for its
system to be certified. Generally, these reviews shall occur where there is a continuous high-
dollar funding, and third-party contracts are awarded on a regular 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.
(h) Bonding requirements. For construction or facility improvement contracts or subcontracts
exceeding the simplified acquisition threshold, the awarding agency may accept the bonding
policy and requirements of the grantee or subgrantee provided the awarding agency has made
a determination that the awarding agency's interest is adequately protected. If such a
determination has not been made, the minimum requirements shall be as follows:
bid guarantee from each bidder equivalent to five percent of the bid price. The "bid
guarantee" shall consist of a firm commitment such as a bid bond, certified check, or other
negotiable instrument accompanying a bid as assurance that the bidder will, upon acceptance
of his bid, execute such contractual documents as may be required within the time specified.
(2) A performance bond on the part of the contractor for 100 percent of the contract price. A
"performance bond" is one executed in connection with a contract to secure fulfillment of all
the contractor's obligations under such contract.
(3) A payment bond on the part of the contractor for 100 percent of the contract price. A
"payment bond" is one executed in connection with a contract to assure payment as required
by law of all persons supplying labor and material in the execution of the work provided for
in the contract.
(i) Contract provisions. A grantee's and subgrantee's contracts must contain provisions in
paragraph (i) of this section. Federal agencies are permitted to require changes, remedies,
changed conditions, access and records retention, suspension of work, and other clauses
approved by the Office of Federal Procurement Policy.
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(1) Administrative, contractual, or legal remedies in instances where contractors violate or
breach contract terms, and provide for such sanctions and penalties as may be appropriate.
(Contracts more than the simplified acquisition threshold)
(2) Termination for cause and for convenience by the grantee or subgrantee including the
manner by which it will be effected and the basis for settlement. (All contracts in excess of
$10,000)
(3) Compliance with Executive Order 11246 of September 24, 1965, entitled "Equal
Employment Opportunity," as amended by Executive Order 11375 of October 13, 1967, and
as supplemented in Department of Labor regulations (41 CFR Chapter 60). (All construction
contracts awarded in excess of $10,000 by grantees and their contractors or subgrantees)
(4) Compliance with the Copeland "Anti-Kickback" Act (18 U.S.C. 874) as supplemented in
Department of Labor regulations (29 CFR part 3). (All contracts and subgrants for
construction or repair)
(5) Compliance with the Davis-Bacon Act (40 U.S.C. 276a to 276a-7) as supplemented by
Department of Labor regulations (29 CFR part 5). (Construction contracts in excess of $2000
awarded by grantees and subgrantees when required by Federal grant program legislation)
(6) Compliance with Sections 103 and 107 of the Contract Work Hours and Safety Standards
Act (40 U.S.C. 327-330) as supplemented by Department of Labor regulations (29 CFR part
5). (Construction contracts awarded by grantees and subgrantees in excess of $2000, and in
excess of $2500 for other contracts which involve the employment of mechanics or laborers)
(7) Notice of awarding agency requirements and regulations pertaining to reporting.
(8) Notice of awarding agency requirements and regulations pertaining to patent rights with
respect to any discovery or invention which arises or is developed in the course of or under
such contract.
(9) Awarding agency requirements and regulations pertaining to copyrights and rights in
data.
(10) Access by the grantee, the subgrantee, the Federal grantor agency, the Comptroller
General of the United States, or any of their duly authorized representatives to any books,
documents, papers, and records of the contractor which are directly pertinent to that specific
contract for the purpose of making audit, examination, excerpts, and transcriptions.
(11) Retention of all required records for three years after grantees or subgrantees make final
payments and all other pending matters are closed.
(12) Compliance with all applicable standards, orders, or requirements issued under section
306 of the Clean Air Act (42 U.S.C. 1857(h)), section 508 of the Clean Water Act (33 U.S.C.
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1368), Executive Order 11738, and Environmental Protection Agency regulations (40 CFR
part 15). (Contracts, subcontracts, and sub grants of amounts in excess of $100,000)
(13) Mandatory standards and policies relating to energy efficiency which are contained in
the State energy conservation plan issued in compliance with the Energy Policy and
Conservation Act (Pub. L. 94-163, 89 Stat. 871).
(j) Payment to consultants. (1) EPA will limit its participation in the salary rate (excluding
overhead) paid to individual consultants retained by grantees or by a grantee's contractors or
subcontractors to the maximum daily rate for a GS-18. (Grantees may, however, pay
consultants more than this amount). This limitation applies to consultation services of
designated individuals with specialized skills who are paid at a daily or hourly rate. This rate
does not include transportation and subsistence costs for travel performed; grantees will pay
these in accordance with their normal travel reimbursement 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.
(k) Use of the same architect or engineer during construction. (1) If the grantee is satisfied
with the qualifications and performance of the architect or engineer who provided any or all
of the facilities planning or design services for a waste-water treatment works project and
wishes to retain that firm or individual during construction of the project, it may do so
without further 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 noncompetitive 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 selected 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 immediate 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 accepted gratuities,
favors or anything of monetary value from contractors or other parties to subagreements.
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(2) However, if the grantee uses the procedures in paragraph (k)(l) of this section to retain an
architect or engineer, any Step 3 subagreements between the architect or engineer and the
grantee must meet all of the other procurement provisions in §31.36.
[53 FR 8068 and 8087, Mar. 11, 1988, and amended at 53 FR 8075, Mar. 11, 1988; 60 FR
19639, 19644, Apr. 19, 1995; 66 FR 3794, Jan. 16, 2001; 73 FR 15913, Mar. 26, 2008]
§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 governments. States shall:
(1) Ensure that every subgrant includes any clauses required by Federal statute and executive
orders and their implementing regulations;
(2) Ensure that subgrantees are aware of requirements imposed upon them by Federal statute
and regulation;
(3) Ensure that a provision for compliance 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. Grantees shall:
(1) Ensure that every subgrant includes a provision for compliance with this part;
(2) Ensure that every subgrant includes any clauses required by Federal statute and executive
orders and their implementing regulations; and
(3) Ensure that subgrantees are aware of requirements imposed upon them by Federal statutes
and regulations.
(c) Exceptions. By their own terms, certain provisions of this part do not apply to the award
and administration of subgrants:
(1) Section 31.10;
(2) Section 31.11;
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(3) The letter-of-credit procedures specified in Treasury Regulations at 31 CFR part 205,
cited in §31.21; and
(4) Section 31.50.
§ 31.38 Indian Self Determination Act.
Any contract, subcontract, or subgrant awarded under an EPA grant by an Indian Tribe or
Indian Intertribal Consortium shall require to the extent feasible:
(a) Preferences and opportunities for training and employment in connection with the
administration of such contracts or grants shall be given to Indians as defined in the Indian
Self Determination Act (25 U.S.C. 450b); and
(b) Preference in the award of subcontracts and subgrants in connection with the
administration of such contracts or grants shall be given to Indian organizations and to
Indian-owned economic enterprises as defined in section 3 of the Indian Financing Act of
1974 (88 Stat. 77) [25 U.S.C. 1452].
[66 FR 3794, Jan. 19,2001]
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 subgrant supported activities. Grantees must monitor grant and subgrant
supported activities to assure compliance with applicable Federal requirements and that
performance goals are being achieved. Grantee monitoring must cover each program,
function, or activity.
(b) Nonconstruction performance reports. The Federal agency may, if it decides that
performance information available from subsequent applications contains sufficient
information to meet its programmatic needs, require the grantee to submit a performance
report only upon expiration or termination of grant support. Unless waived by the Federal
agency, this report will be due on the same date as the final Financial Status Report.
(1) Grantees shall submit annual performance reports unless the awarding agency requires
quarterly or semi-annual reports. However, performance reports will not be required more
frequently than quarterly. Annual reports shall be due 90 days after the grant year, quarterly
or semi-annual reports shall be due 30 days after the reporting period. The final performance
report will be due 90 days after the expiration or termination of grant support. If a justified
request is submitted by a grantee, the Federal agency may extend the due date for any
performance report. Additionally, requirements for unnecessary performance reports may be
waived by the Federal agency.
(2) Performance reports will contain, for each grant, brief information on the following:
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(i) A comparison of actual accomplishments to the objectives established for the period.
Where the output of the project can be quantified, a computation of the cost per unit of output
may be required if that information will be useful.
(ii) The reasons for slippage if established objectives were not met.
(iii) Additional pertinent information including, when appropriate, analysis and explanation
of cost overruns or high unit costs.
(3) Grantees will not be required to submit more than the original and two copies of
performance reports.
(4) Grantees will adhere to the standards in this section in prescribing performance reporting
requirements for subgrantees.
(c) Construction performance reports. For the most part, on-site technical inspections and
certified percentage-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 performance reports only when considered necessary, and never more frequently than
quarterly.
(d) Significant developments. Events may occur between the scheduled performance
reporting dates which have significant impact upon the grant or subgrant supported activity.
In such cases, the grantee must inform the Federal agency as soon as the following types of
conditions become known:
(1) Problems, delays, or adverse conditions which will materially impair the ability to meet
the objective of the award. This disclosure must include a statement of the action taken, or
contemplated, and any assistance needed to resolve the situation.
(2) Favorable developments which enable meeting time schedules and objectives sooner or at
less cost than anticipated or producing more beneficial results than originally planned.
(e) Federal agencies may make site visits as warranted by program needs.
(f) Waivers, extensions. (1) Federal agencies may waive any performance report required by
this part if not needed.
(2) The grantee may waive any performance report from a subgrantee when not needed. The
grantee may extend the due date for any performance report from a subgrantee if the grantee
will still be able to meet its performance reporting obligations to the Federal agency.
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§ 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:
(i) Submitting financial reports to Federal agencies, or
(ii) Requesting advances or reimbursements when letters of credit are not used.
(2) Grantees need not apply the forms prescribed in this section in dealing with their
sub grantees. However, grantees shall not impose more burdensome requirements on
sub grantees.
(3) Grantees shall follow all applicable standard and supplemental Federal agency
instructions approved by OMB to the extent 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 instructions only with the approval of
OMB. Federal agencies may shade out or instruct the grantee to disregard any line item that
the Federal agency finds unnecessary for its decisionmaking purposes.
(4) Grantees will not be required to submit more than the original and two copies of forms
required under this part.
(5) Federal agencies may provide computer outputs to grantees to expedite or contribute to
the accuracy of reporting. Federal agencies may accept the required information from
grantees in machine usable format or computer printouts instead of prescribed forms.
(6) Federal agencies may waive any report required by this section if not needed.
(7) Federal agencies may extend the due date of any financial report upon receiving a
justified request from a grantee.
(b) Financial Status Report — (1) Form. Grantees will use Standard Form 269 or 269A,
Financial Status Report, to report the status of funds for all nonconstruction grants and for
construction grants when required in accordance with §31.41(e)(2)(iii).
(2) Accounting basis. Each grantee will report program outlays and program income on a
cash or accrual basis as prescribed by the awarding agency. If the Federal agency requires
accrual information and the grantee's accounting records are not normally kept on the accrual
basis, the grantee shall not be required to convert its accounting system but shall develop
such accrual information through and analysis of the documentation on hand.
(3) Frequency. The Federal agency may prescribe the frequency of the report for each project
or program. However, the report will not be required more frequently than quarterly. If the
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Federal agency does not specify the frequency of the report, it will be submitted annually. A
final report will be required upon expiration or termination of grant support.
(4) Due date. When reports are required on a quarterly or semiannual basis, they will be due
30 days after the reporting period. When required on an annual basis, they will be due 90
days after the grant year. Final reports will be due 90 days after the expiration or termination
of grant support.
(c) Federal Cash Transactions Report — (1) Form, (i) For grants paid by letter or credit,
Treasury check advances or electronic transfer of funds, the grantee will submit the Standard
Form 272, Federal Cash Transactions Report, and when necessary, its continuation sheet,
Standard Form 272a, unless the terms of the award exempt the grantee from this requirement.
(ii) These reports will be used by the Federal agency to monitor cash advanced to grantees
and to obtain disbursement or outlay information for each grant from grantees. The format of
the report may be adapted as appropriate when reporting is to be accomplished with the
assistance of automatic data processing equipment provided that the information to be
submitted is not changed in substance.
(2) Forecasts of Federal cash requirements. Forecasts of Federal cash requirements may be
required in the "Remarks" section of the report.
(3) Cash in hands ofsubgrantees. When considered necessary and feasible by the Federal
agency, grantees may be required to report the amount of cash advances in excess of three
days' needs in the hands of their 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. Grantees must submit the report no later than 15 working days
following the end of each quarter. However, where an advance either by letter of credit or
electronic transfer of funds is authorized at an annualized rate of one million dollars or more,
the Federal agency may require the report to be submitted within 15 working days following
the end of each month.
(d) Request for advance or reimbursement — (1) Advance payments. Requests for Treasury
check advance payments will be submitted on Standard Form 270, Request for Advance or
Reimbursement. (This form will not be used for drawdowns under a letter of credit,
electronic funds transfer or when Treasury check advance payments are made to the grantee
automatically on a predetermined basis.)
(2) Reimbursements. Requests for reimbursement under nonconstruction grants will also be
submitted on Standard Form 270. (For reimbursement requests under construction grants, see
paragraph (e)(l) of this section.)
(3) The frequency for submitting payment requests is treated in §31.41(b)(3).
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(e) Outlay report and request for reimbursement for construction programs. (1) Grants that
support construction activities paid by reimbursement method.
(i) Requests for reimbursement under construction grants will be submitted on Standard
Form 271, Outlay Report and Request for Reimbursement for Construction Programs.
Federal agencies may, however, prescribe the Request for Advance or Reimbursement form,
specified in §31.41(d), instead of this form.
(ii) The frequency for submitting reimbursement requests is treated in §31.41(b)(3).
(2) Grants that support construction activities paid by letter of credit, electronic funds
transfer or Treasury check advance, (i) When a construction grant is paid by letter of credit,
electronic funds transfer or Treasury check advances, the grantee will report its outlays to the
Federal agency using Standard Form 271, Outlay Report and Request for Reimbursement for
Construction Programs. The Federal agency will provide any necessary special instruction.
However, frequency and due date shall be governed by §31.41(b) (3) and (4).
(ii) When a construction grant is paid by Treasury check advances based on periodic requests
from the grantee, the advances will be requested on the form specified in §31.41(d).
(iii) The Federal agency may substitute the Financial Status Report specified in §31.41(b) for
the Outlay Report and Request for Reimbursement for Construction Programs.
(3) Accounting basis. The accounting basis for the Outlay Report and Request for
Reimbursement for Construction Programs shall be governed by §31.41(b)(2).
§ 31.42 Retention and access requirements for records.
(a) Applicability. (1) This section applies to all financial and programmatic records,
supporting documents, statistical records, and other records of grantees or subgrantees which
are:
(i) Required to be maintained by the terms of this part, program regulations or the grant
agreement, or
(ii) Otherwise reasonably considered as pertinent to program regulations or the grant
agreement.
(2) This section does not apply to records maintained by contractors or subcontractors. For a
requirement to place a provision concerning records in certain kinds of contracts, see
§31.36(i)(10).
(b) Length of retention period. (1) Except as otherwise provided, records must be retained for
three years from the starting date specified in paragraph (c) of this section.
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(2) If any litigation, claim, negotiation, audit, or other action involving the records has been
started before the expiration of the 3-year period, the records must be retained until
completion of the action and resolution of all issues which arise from it, or until the end of
the regular 3-year period, whichever is later.
(3) To avoid duplicate recordkeeping, awarding agencies may make special arrangements
with grantees and sub grantees to retain any records which are continuously needed for joint
use. The awarding agency will request transfer of records to its custody when it determines
that the records possess long-term retention value. When the records are transferred to or
maintained by the Federal agency, the 3-year retention requirement is not applicable to the
grantee or sub grantee.
(c) Starting date of retention period— (1) General. When grant support is continued or
renewed at annual or other intervals, the retention period for the records of each funding
period starts on the day the grantee or subgrantee submits to the awarding agency its single or
last expenditure report for that period. However, if grant support is continued or renewed
quarterly, the retention period for each year's records starts on the day the grantee submits its
expenditure report for the last quarter of the Federal fiscal year. In all other cases, the
retention period starts on the day the grantee submits its final expenditure report. If an
expenditure report has been waived, the retention period starts on the day the report would
have been due.
(2) Real property and equipment records. The retention period for real property and
equipment records starts from the date of the disposition or replacement or transfer at the
direction of the awarding agency.
(3) Records for income transactions after grant or subgrant support. In some cases grantees
must report income after the period of grant support. Where there is such a requirement, the
retention period for the records pertaining to the earning of the income starts from the end of
the grantee's fiscal year in which the income is earned.
(4) Indirect cost rate proposals, cost allocations plans, etc. This paragraph applies to the
following types of documents, and their supporting records: indirect cost rate computations
or proposals, cost allocation plans, and any similar accounting computations of the rate at
which a particular group of costs is chargeable (such as computer usage chargeback rates or
composite fringe benefit rates).
(i) If submitted for negotiation. If the proposal, plan, or other computation is required to be
submitted to the Federal Government (or to the grantee) to form the basis for negotiation of
the rate, then the 3-year retention period for its supporting records starts from the date of
such submission.
(ii) If not submitted for negotiation. If the proposal, plan, or other computation is not required
to be submitted to the Federal Government (or to the grantee) for negotiation purposes, then
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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— (1) Records of grantees and subgrantees. The awarding agency and
the Comptroller General of the United States, or any of their authorized representatives, shall
have the right of access to any pertinent books, documents, papers, or other records of
grantees and subgrantees which are pertinent to the grant, in order to make audits,
examinations, excerpts, and transcripts.
(2) Expiration of right of access. The rights of access in this section must not be limited to
the required retention period but shall last as long as the records are retained.
(f) Restrictions on public access. The Federal Freedom of Information Act (5 U.S.C. 552)
does not apply to records Unless required by Federal, State, or local law, grantees and
subgrantees are not required to permit public access to their records.
§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 circumstances:
(1) Temporarily withhold cash payments pending correction of the deficiency by the grantee
or subgrantee or more severe enforcement action by the awarding agency,
(2) Disallow (that is, deny both use of funds and matching credit for) all or part of the cost of
the activity or action not in compliance,
(3) Wholly or partly suspend or terminate the current award for the grantee's or subgrantee's
program,
(i) EPA can also wholly or partly annul the current award for the grantee's or subgrantee's
program,
(ii) [Reserved]
(4) Withhold further awards for the program, or
(5) Take other remedies that may be legally available.
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(b) Hearings, appeals. In taking an enforcement action, the awarding agency will provide the
grantee or sub grantee an opportunity for such hearing, appeal, or other administrative
proceeding to which the grantee or subgrantee is entitled under any statute or regulation
applicable to the action involved.
(c) Effects of suspension and termination. Costs of grantee or subgrantee resulting from
obligations incurred by the grantee or subgrantee during a suspension or after termination of
an award are not allowable unless the awarding agency expressly authorizes them in the
notice of suspension or termination or subsequently. Other grantee or subgrantee costs during
suspension or after termination which are necessary and not reasonably avoidable are
allowable if:
(1) The costs result from obligations which were properly incurred by the grantee or
subgrantee before the effective date of suspension or termination, are not in anticipation of it,
and, in the case of a termination, are non-cancellable, and,
(2) The costs would be allowable if the award were not suspended or expired normally at the
end of the funding period in which the termination takes effect.
(d) Relationship to Debarment and Suspension. The enforcement remedies identified in this
section, including suspension and termination, do not preclude grantee or subgrantee from
being subject to "Debarment and Suspension" under E.O. 12549 (see §31.35).
[53 FR 8068 and 8087, Mar. 11, 1988, as amended at 53 FR 8076, Mar. 11, 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 conditions, including the effective date and in
the case of partial termination, the portion to be terminated, or
(b) By the grantee or subgrantee upon written notification to the awarding agency, setting
forth the reasons for such termination, the effective date, and in the case of partial
termination, the portion to be terminated. However, if, in the case of a partial termination, the
awarding agency determines that the remaining portion of the award will not accomplish the
purposes for which the award was made, the awarding agency may terminate the award in its
entirety under either §31.43 or paragraph (a) of this section.
§ 31.45 Quality assurance.
If the grantee's project involves environmentally related measurements or data generation, the
grantee shall develop and implement quality assurance practices consisting of policies,
procedures, specifications, standards, and documentation sufficient to produce data of quality
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adequate to meet project objectives and to minimize loss of data due to out-of-control
conditions or malfunctions.
[53 FR 8076, Mar. 11, 1988]
Subpart D—After-the-Grant Requirements
§31.50 Closeout.
(a) General. The Federal agency will close out the award when it determines that all
applicable administrative actions and all required work of the grant has been completed.
(b) Reports. Within 90 days after the expiration or termination of the grant, the grantee must
submit all financial, performance, and other reports required as a condition of the grant.
Upon request by the grantee, Federal agencies may extend this timeframe. These may include
but are not limited to:
(1) Final performance or progress report.
(2) Financial Status Report (SF 269) or Outlay Report and Request for Reimbursement for
Construction Programs (SF-271) (as applicable.)
(3) Final request for payment (SF-270) (if applicable).
(4) Invention disclosure (if applicable).
(5) Federally-owned property report: In accordance with §31.32(f), a grantee must submit an
inventory of all federally owned property (as distinct from property acquired with grant
funds) for which it is accountable and request disposition instructions from the Federal
agency of property no longer needed.
(c) Cost adjustment. The Federal agency will, within 90 days after receipt of reports in
paragraph (b) of this section, make upward or downward adjustments to the allowable costs.
(d) Cash adjustments. (1) The Federal agency will make prompt payment to the grantee for
allowable reimbursable costs.
(2) The grantee must immediately refund to the Federal agency any balance of unobligated
(unencumbered) cash advanced that is not authorized to be retained for use on other grants.
§ 31.51 Later disallowances and adjustments.
The closeout of a grant does not affect:
(a) The Federal agency's right to disallow costs and recover funds on the basis of a later audit
or other review;
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(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 requirements 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 entitled under the terms of the award constitute a debt to the Federal
Government. If not paid within a reasonable period after demand, the Federal agency may
reduce the debt by:
(1) Making an administrative offset against other requests for reimbursements,
(2) Withholding advance payments otherwise due to the grantee, or
(3) Other action permitted by law.
(b) Except where otherwise provided by statutes or regulations, the Federal agency will
charge interest on an overdue debt in accordance with the Federal Claims Collection
Standards (4 CFR Ch. II). The date from which interest is computed is not extended by
litigation or the filing of any form of appeal.
Subpart E—Entitlement [Reserved]
Subpart F—Disputes
§31.70 Disputes.
(a) Disagreements should be resolved at the lowest level possible.
(b) If an agreement cannot be reached, the EPA disputes decision official will provide a
written final decision. The EPA disputes decision official is the individual designated by the
award official to resolve disputes concerning 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 Headquarters, the
request for review shall be filed with the Assistant Administrator responsible for the
assistance program.
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(2) For final decisions issued by a Regional disputes decision official, the request for review
shall be filed with the Regional Administrator. If the Regional Administrator issued the final
decision, the request for reconsideration shall be filed with the Regional Administrator.
(d) The request shall include:
(1) A copy of the EPA disputes decision official's final decision;
(2) A statement of the amount in dispute;
(3) A description of the issues involved; and
(4) A concise statement of the objections to the final decision.
(e) The disputant(s) may be represented by counsel and may submit documentary evidence
and briefs for inclusion in a written record.
(f) Disputants are entitled to an informal conference with EPA officials.
(g) Disputants are entitled to a written decision from the appropriate Regional or Assistant
Administrator.
(h) A decision by the Assistant Administrator to confirm the final decision of a Headquarters
disputes decision official will constitute the final Agency action.
(i) A decision by the Regional Administrator 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 decision. The petition
shall be sent to the Assistant Administrator by registered mail, return receipt requested, and
shall include:
(1) A copy of the Regional Administrator's decision; and
(2) A concise statement of the objections to the decision.
(j) If the Assistant Administrator decides not to review the Regional Administrator's decision,
the Assistant Administrator will advise the disputant(s) in writing that the Regional
Administrator's decision remains the final Agency action.
(k) If the Assistant Administrator decides to review the Regional Administrator's decision,
the review will generally be limited to the written record on which the Regional
Administrator's decision was based. The Assistant Administrator may allow the disputant(s)
to submit briefs in support of the petition for review and may provide an opportunity for an
informal conference in order to clarify technical or legal issues. After reviewing the Regional
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Administrator's decision, the Assistant Administrator will issue a written decision which will
then become the final Agency action.
(1) Reviews may not be requested of:
(1) Decisions on requests for exceptions 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.
[53 FR 8076, Mar. 11, 1988]
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Appendix A to Part 31—Audit Requirements for State and Local Government
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 Governments.
1. Purpose. This Circular is issued pursuant to the Single Audit Act of 1984, Public Law 98-
502. It establishes audit requirements for State and local governments that receive Federal
aid, and defines Federal responsibilities 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 7505 of the Act requires
the Director of the Office of Management and Budget to prescribe policies, procedures, and
guidelines to implement the Act. It specifies that the Director shall designate "cognizant"
(appropriate) Federal agencies, determine criteria for making appropriate 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
contracts 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 accordance 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.
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d. Nothing in this paragraph exempts State or local governments from maintaining 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 requirements for grants to State
or local governments."
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 Management and
Budget to carry out the responsibilities described in paragraph 11 of this Circular.
b. Federal financial assistance means assistance provided by a Federal agency in the form of
grants, contracts, cooperative agreements, loans, loan guarantees, property, interest subsidies,
insurance, or direct appropriations, but does not include direct Federal cash assistance to
individuals. It includes awards received directly from Federal agencies, 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 principles has the meaning specified in the generally
accepted government auditing standards.
e. Generally accepted government auditing standards means the Standards for Audit of
Government Organizations, Programs, Activities, and Functions, developed by the
Comptroller General, dated February 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 organization and methods and procedures adopted by
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, maintained, and fairly disclosed in reports.
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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 Alaskan Native Claims Settlement Act) that is
recognized by the United States as eligible for the special programs and services provided 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, special district,
school district, intrastate district, 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 individuals who meet the qualification standards included
in generally accepted government auditing standards for personnel performing government
audits.
1. State means any State of the United States, the District of Columbia, the Commonwealth of
Puerto Rico, the Virgin Islands, Guam, American Samoa, the Commonwealth of the
Northern Mariana Islands, 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 establishment that
receives Federal financial assistance to carry out a program through a State or local
government, but does not include an individual that is a beneficiary of such a program. A
subrecipient may also be a direct recipient of Federal financial assistance.
6. Scope of audit. The Single Audit Act provides that:
a. The audit shall be made by an independent auditor in accordance with generally accepted
government auditing standards covering financial and compliance audits.
b. The audit shall cover the entire operations 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 administered Federal financial assistance during the year. However,
if a State or local government receives $25,000 or more in General Revenue Sharing Funds
in a fiscal year, it shall have an audit of its entire operations. A series of audits of individual
departments, agencies, and establishments for the same fiscal year may be considered a
single audit.
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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 excluded, audits of
these entities shall be made in accordance with statutory requirements and the provisions of
Circular A-l 10. "Uniform requirements for grants to universities, hospitals, and other
nonprofit organizations."
d. The auditor shall determine whether:
(1) The financial statements of the government, department, agency, or establishment present
fairly its financial position and the results of its financial operations in accordance with
generally accepted accounting principles:
(2) The organization has internal accounting and other control systems to provide reasonable
assurance that it is managing Federal financial assistance programs in compliance with
applicable laws and regulations; and
(3) The organization has complied with laws and regulations that may have material 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 government
has, by January 1, 1987, a constitutional or statutory requirement for less frequent audits. For
those governments, the cognizant agency shall permit biennial audits, covering both years, if
the government so requests. It shall also honor requests for biennial audits by governments
that have an administrative policy calling for audits less frequent than annual, but only for
fiscal years beginning before January 1, 1987.
8. Internal control and compliance reviews. The Single Audit Act requires that the
independent auditor determine and report on whether the organization has internal control
systems to provide reasonable assurance that it is managing Federal assistance programs in
compliance with applicable laws and regulations.
a. Internal control review. In order to provide this assurance the auditor must make a study
and evaluation of internal control systems used in administering Federal assistance 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 requires 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.
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(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 agencies and through other State and local governments.
(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 transactions shall
be based on the auditor's professional judgment considering such factors as the amount of
expenditures for the program and the individual awards; the newness of the program or
changes in its conditions; prior experience with the program, particularly as revealed in
audits and other evaluations (e.g., inspections program reviews); 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 program 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 adverse 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 advances and reimbursements contain information
that is supported by the books 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 F of Circular A-
102, "Uniform requirements for grants to State and local governments."
(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 controls shall be tested
for compliance with Federal laws and regulations that apply to such transactions.
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9. Subrecipients. State or local governments that receive Federal financial assistance and
provide $25,000 or more of it in a fiscal year to a subrecipient shall:
a. Determine whether State or local subrecipients have met the audit requirements of this
Circular and whether subrecipients covered by Circular a-110. "Uniform requirements 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 regulations. This may be accomplished by reviewing an audit of the
subrecipient made in accordance with this Circular, Circular A-110, or through other means
(e.g., program reviews) if the subrecipient has not yet had such an audit;
c. Ensure that appropriate corrective action is taken within six months after receipt of the
audit report in instances of noncompliance with Federal laws and regulations;
d. Consider whether subrecipient audits necessitate adjustment of the recipient's own records;
and
e. Require each subrecipient to permit independent auditors to have access to the records and
financial statements as necessary 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 compliance audit
required under individual Federal 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 information. 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 Federal agency Inspector General or other Federal 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 contracts for audits in addition 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 additional audits
include economy and efficiency audits, program results audits, and program evaluations.
11. Cognizant agency responsibilities. The Single Audit Act provides for cognizant Federal
agencies to oversee the implementation of this Circular.
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a. The Office of Management and Budget will assign cognizant agencies for States and their
subdivisions and larger local governments and their subdivisions. Other Federal agencies
may participate with an assigned cognizant agency, in order to fulfill the cognizant
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 following responsibilities:
(1) Ensure that audits are made and reports 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 independent
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 organizations.
(4) Promptly inform other affected Federal agencies and appropriate Federal law
enforcement 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.
(5) Advise the recipient of audits that have been found not to have met the requirements set
forth in this Circular. In such instances, the recipient will be expected to work with the
auditor to take corrective action. If corrective action is not taken, the cognizant agency shall
notify the recipient 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 made by or for Federal agencies that are in
addition to the audits made pursuant to this Circular, so that the additional audits build up
such audits.
(7) Oversee the resolution of audit findings 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 reporting 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.
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13. Audit Reports. Audit reports must be prepared at the completion of the audit. Reports
serve many needs of State and local governments as well as meeting the requirements of the
Single Audit Act.
a. The audit report shall state that the audit was made in accordance with the provisions of
this Circular. The report shall be made up of at least:
(1) The auditor's report on financial statements and on a schedule of Federal assistance; the
financial statements; and a schedule of Federal assistance, showing the total expenditures for
each Federal assistance program as identified in the Catalog oj'Federal Domestic Assistance.
Federal programs or grants that have not been assigned a catalog number shall be identified
under the caption "other Federal assistance."
(2) The author's report on the study and evaluation of internal control systems must identify
the organization's significant internal 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 evaluated, 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 respect to those items tested for compliance,
including compliance with law and regulations pertaining to financial reports and claims for
advances and reimbursements;
—Negative assurance on those items not tested;
—A summary of all instances of noncompliance; and
—An identification of total amounts questioned, 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 indications 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 submitted in accordance with paragraph 13f
d. In addition to the audit report, the recipient shall provide comments on the findings and
recommendations in the report, including a plan for corrective action taken or planned and
comments on the status of corrective action taken on prior findings. If corrective action is not
necessary, a statement describing the reason it is not should accompany the audit report.
e. The reports shall be made available by the State or local government for public inspection
within 30 days after the completion of the audit.
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f. In accordance with generally accepted government audit standards, reports shall be
submitted by the auditor to the organization audited and to those requiring or arranging for
the audit. In addition, the recipient shall submit copies of the reports to each Federal
department or agency that provided Federal assistance funds to the recipient. Subrecipients
shall submit copies to recipients that provided them Federal assistance 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 $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 governments 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 paragraph 11, the cognizant agency shall be responsible
for monitoring the resolution of audit findings that affect the programs of more than one
Federal agency. Resolution of findings that relate to the programs of a single Federal agency
will be the responsibility of the recipient and that agency. Alternate 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. Corrective action should proceed as rapidly as possible.
15. Audit work papers 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 notified 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
completion of the audit.
16. Audit Costs. The cost of audits made in accordance with the provisions of this Circular
are allowable charges to Federal assistance programs.
a. The charges may be considered a direct cost or an allocated indirect cost, determined 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 percentage that Federal funds expended represent of total funds
expended by the recipient during the fiscal year. The percentage may be exceeded, however,
if appropriate documentation demonstrates higher actual cost.
17. Sanctions. The Single Audit Act provides that no cost may be charged to Federal
assistance programs for audits required by the Act that are not made in accordance with this
Circular. In cases of continued inability or unwillingness to have a proper audit, Federal
agencies must consider other appropriate sanctions including:
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—Withholding a percentage of assistance payments until the audit is completed
satisfactorily,
—Withholding or disallowing overhead costs, and
—Suspending the Federal assistance agreement until the audit is made.
18. Auditor Selection. In arranging for audit services State and local governments shall
follow the procurement standards prescribed by Attachment O of Circular A-102, "Uniform
requirements for grants to State and local governments." The standards provide 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 services) these statutes will take
precedence.
19. Small and Minority Audit Firms. Small audit firms and audit firms owned and controlled
by socially and economically disadvantaged individuals shall have the maximum practicable
opportunity to participate in contracts awarded to fulfill the requirements of this Circular.
Recipients of 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 opportunities available and arrange timeframes for the
audit so as to encourage and facilitate participation by small audit firms and audit firms
owned and controlled by socially and economically disadvantaged individuals.
c. Consider in the contract process whether 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 subcontracting opportunities.
e. Encourage contracting with consortiums 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 appropriate, of such organizations as the Small Business
Administration in the solicitation and utilization of small audit firms or audit firms owned
and controlled by socially and economically disadvantaged individuals.
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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 governments 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 effective 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 of Attachment P to
Circular A-102 shall continue to be observed.
23. Inquiries, All questions or inquiries should be addressed to Financial Management
Division, Office of Management and Budget, telephone number 202/395-3993.
24. Sunset review date. This Circular shall have an independent policy review to ascertain 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 applicable year exceed the larger of $308,000, or 3 percent
of such total expenditures.
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Where total expenditures of Federal assistance exceed $100,000,000, the following criteria
apply:
Total expenditures of Federal financial
assistance for all programs
More than
$100 million
But less than
$1 billion
Major Federal assistance program means any
program that exceeds
$3 million.
$1 billion ||$2 billion ||$4 million.
$2 billion
$3 billion
$3 billion
$4 billion
$7 million.
$10 million.
$4 billion ||$5 billion ||$13 million.
$5 billion ||$6 billion ||$16 million.
$6 billion ||$7 billion ||$19 million.
Over $7 billion | ||$20 million.
[51 FR 6353, Feb. 21, 1986. Re-designated at 53 FR 8076, Mar. 11, 1988]
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40:
PART 33—PARTICIPATION BY DISADVANTAGED BUSINESS ENTERPRISES IN
UNITED STATES ENVIRONMENTAL PROTECTION AGENCY PROGRAMS
Section Contents
Subpart A—General Provisions
§ 33.101 What are the objectives of this part?
§ 33.102 When do the requirements of this part apply?
§ 33.103 What do the terms in this part mean?
§ 33.104 May recipients apply for a waiver from the requirements of this part?
§ 33.105 What are the compliance and enforcement provisions of this part?
§ 33.106 What assurances must EPA financial assistance recipients obtain from their contractors?
§ 33.107 What are the rules governing availability of records, cooperation, and intimidation and
retaliation?
Subpart B—Certification
§ 33.201 What does this subpart require?
§ 33.202 How does an entity qualify as an MBE or WBE under EPA's 8% statute?
§ 33.203 How does an entity qualify as an MBE or WBE under EPA's 10% statute?
§ 33.204 Where does an entity become certified under EPA's 8% and 10% statutes?
§ 33.205 How does an entity become certified by EPA?
§ 33.206 Is there a list of certified MBEs and WBEs?
§ 33.207 Can an entity reapply to EPA for MBE or WBE certification?
§ 33.208 How long does an MBE or WBE certification from EPA last?
§ 33.209 Can EPA re-evaluate the MBE or WBE status of an entity after EPA certifies it to be an MBE
or WBE?
§ 33.210 Does an entity certified as an MBE or WBE by EPA need to keep EPA informed of any
changes which may affect the entity's certification?
§ 33.211 What is the process for appealing or challenging an EPA MBE or WBE certification
determination?
§ 33.212 What conduct is prohibited by this subpart?
Subpart C—Good Faith Efforts
§ 33.301 What does this subpart require?
§ 33.302 Are there any additional contract administration requirements?
§ 33.303 Are there special rules for loans under EPA financial assistance agreements?
§ 33.304 Must a Native American (either as an individual, organization, Tribe or Tribal Government)
recipient or prime contractor follow the six good faith efforts?
Subpart D—Fair Share Objectives
§ 33.401 What does this subpart require?
§ 33.402 Are there special rules for loans under EPA financial assistance agreements?
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§ 33.403 What is a fair share objective?
§ 33.404 When must a recipient negotiate fair share objectives with EPA?
§ 33.405 How does a recipient determine its fair share objectives?
§ 33.406 May a recipient designate a lead agency for fair share objective negotiation purposes?
§ 33.407 How long do MBE and WBE fair share objectives remain in effect?
§ 33.408 May a recipient use race and/or gender conscious measures as part of this program?
§ 33.409 May a recipient use quotas as part of this program?
§ 33.410 Can a recipient be penalized for failing to meet its fair share objectives?
§ 33.411 Who may be exempted from this subpart?
§ 33.412 Must an Insular Area or Indian Tribal Government recipient negotiate fair share
objectives?
Subpart E—Recordkeeping and Reporting
§ 33.501 What are the recordkeeping requirements of this part?
§ 33.502 What are the reporting requirements of this part?
§ 33.503 How does a recipient calculate MBE and WBE participation for reporting purposes?
Appendix A to Part 33—Term and Condition
Authority: 15 U.S.C. 637 note; 42 U.S.C. 4370d, 7601 note, 9605(f); E.G. 11625, 36 FR 19967, 3 CFR, 1971
Comp., p. 213; E.G. 12138, 49 FR 29637, 3 CFR, 1979 Comp., p. 393; E.G. 12432, 48 FR 32551, 3 CFR, 1983
Comp., p. 198.
Source: 73 FR 15913, Mar. 26, 2008, unless otherwise noted.
Subpart A—General Provisions
§ 33.101 What are the objectives of this part?
The objectives of this part are:
(a) To ensure nondiscrimination in the award of contracts under EPA financial assistance
agreements. To that end, implementation of this rule with respect to grantees, sub-grantees,
loan recipients, prime contractors, or subcontractors in particular States or locales—notably
those where there is no apparent history of relevant discrimination—must comply with equal
protection standards at that level, apart from the EPA DBE Rule's constitutional compliance
as a national matter;
(b) To harmonize EPA's DBE Program objectives with the U.S. Supreme Court's decision in
Adarand Constructors, Inc. v. Pena, 515 U.S. 200 (1995);
(c) To help remove barriers to the participation of DBEs in the award of contracts under EPA
financial assistance agreements; and
(d) To provide appropriate flexibility to recipients of EPA financial assistance in establishing
and providing contracting opportunities for DBEs.
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§ 33.102 When do the requirements of this part apply?
The requirements of this part apply to procurement under EPA financial assistance
agreements performed entirely within the United States, whether by a recipient or its prime
contractor, for construction, equipment, services, and supplies.
§ 33.103 What do the terms in this part mean?
Terms not defined below shall have the meaning given to them in 40 CFR Part 30, Part 31,
and Part 35 as applicable. As used in this part:
Availability analysis means documentation of the availability of MBEs and WBEs in the
relevant geographic market in relation to the total number of firms available in that area.
Award official means the EPA Regional or Headquarters official delegated the authority to
execute financial assistance agreements on behalf of EPA.
Broker means a firm that does not itself perform, manage, or supervise the work of its
contract or subcontract in a manner consistent with the normal business practices for
contractors or subcontractors in its line of business.
Business, business concern or business enterprise means an entity organized for profit with a
place of business located in the United States, and which operates primarily within the
United States or which makes a significant contribution to the United States economy
through payment of taxes or use of American products, materials or labor.
Construction means erection, alteration, or repair (including dredging, excavating, and
painting) of buildings, structures, or other improvements to real property, and activities in
response to a release or a threat of a release of a hazardous substance into the environment, or
activities to prevent the introduction of a hazardous substance into a water supply.
Disabled American means, with respect to an individual, permanent or temporary physical or
mental impairment that substantially limits one or more of the major life activities of such an
individual; a record of such an impairment; or being regarded as having such an impairment.
Disadvantaged business enterprise (DBE) means an entity owned or controlled by a socially
and economically disadvantaged individual as described by Public Law 102-389 (42 U.S.C.
4370d) or an entity owned and controlled by a socially and economically disadvantaged
individual as described by Title X of the Clean Air Act Amendments of 1990 (42 U.S.C.
7601 note); a Small Business Enterprise (SEE); a Small Business in a Rural Area (SBRA); or
a Labor Surplus Area Firm (LSAF), a Historically Underutilized Business (HUB) Zone
Small Business Concern, or a concern under a successor program.
Disparity study means a comparison within the preceding ten years of the available MBEs
and WBEs in a relevant geographic market with their actual usage by entities procuring in
the categories of construction, equipment, services, and supplies.
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Equipment means items procured under a financial assistance agreement as defined by
applicable regulations (for example 40 CFR 30.2 and 40 CFR 31.3) for the particular type of
financial assistance received.
Fair share objective means an objective expressing the percentage of MBE or WBE
utilization expected absent the effects of discrimination.
Financial assistance agreement means grants or cooperative agreements awarded by EPA.
The term includes grants or cooperative agreements used to capitalize revolving loan funds,
including, but not limited to, the Clean Water State Revolving Loan Fund (CWSRF) Program
under Title VI of the Clean Water Act, as amended, 33 U.S.C. 1381 et seq ., the Drinking
Water State Revolving Fund (DWSRF) Program under section 1452 of the Safe Drinking
Water Act, 42 U.S.C. 300J-12, and the Brownfields Cleanup Revolving Loan Fund (BCRLF)
Program under section 104 of the Comprehensive Environmental Response, Compensation
and Liability Act, 42 U.S.C. 9604.
Good faith efforts means the race and/or gender neutral measures described in subpart C of
this part.
Historically black college or university (HBCU) means an institution determined by the
Secretary of Education to meet the requirements of 34 CFR Part 608.
HUBZone means a historically underutilized business zone, which is an area located within
one or more qualified census tracts, qualified metropolitan counties, or lands within the
external boundaries of an Indian reservation.
HUBZone small business concern means a small business concern that appears on the List of
Qualified HUBZone Small Business Concerns maintained by the Small Business
Administration.
Identified loan means a loan project or set-aside activity receiving assistance from a recipient
of an EPA financial assistance agreement to capitalize a revolving loan fund, which:
(1) In the case of the CWSRF Program, is a project funded from amounts equal to the
capitalization grant;
(2) In the case of the DWSRF Program, is a loan project or set-aside activity funded from
amounts up to the amount of the capitalization grant; or
(3) In the case of the BCRLF Program, is a project that has been funded with EPA financial
assistance.
Insular area means the Commonwealth of Puerto Rico or any territory or possession of the
United States.
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Joint venture means an association of a DBE firm and one or more other firms to carry out a
single, for-profit business enterprise, for which the parties combine their property, capital,
efforts, skills and knowledge, and in which the DBE is responsible for a distinct, clearly
defined portion of the work of the contract and whose share in the capital contribution,
control, management, risks, and profits of the joint venture are commensurate with its
ownership interest.
Labor surplus area firm (LSAF) means a concern that together with its first-tier
subcontractors will perform substantially in labor surplus areas (as identified by the
Department of Labor in accordance with 20 CFR Part 654). Performance is substantially in
labor surplus areas if the costs incurred under the contract on account of manufacturing,
production or performance of appropriate services in labor surplus areas exceed 50 percent of
the contract price.
Minority business enterprise (MBE) means a Disadvantaged Business Enterprise (DBE) other
than a Small Business Enterprise (SEE), a Labor Surplus Area Firm (LSAF), a Small
Business in Rural Areas (SBRA), or a Women's Business Enterprise (WBE).
Minority institution means an accredited college or university whose enrollment of a single
designated group or a combination of designated groups (as defined by the Small Business
Administration regulations at 13 CFR Part 124) exceeds 50% of the total enrollment.
Native American means any individual who is an American Indian, Eskimo, Aleut, or Native
Hawaiian.
Recipient means an entity that receives an EPA financial assistance agreement or is a sub-
recipient of such agreement, including loan recipients under the Clean Water State Revolving
Fund Program, Drinking Water State Revolving Fund Program, and the Brownfields Cleanup
Revolving Loan Fund Program.
Services means a contractor's labor, time or efforts provided in a manner consistent with
normal business practices which do not involve the delivery of a specific end item, other than
documents (e.g., reports, design drawings, specifications).
Small business, small business concern or small business enterprise (SEE) means a concern,
including its affiliates, that is independently owned and operated, not dominant in the field of
operation in which it is bidding, and qualified as a small business under the criteria and size
standards in 13 CFR part 121.
Small business in a rural area (SBRA) means a small business operating in an area identified
as a rural county with a code 6-9 in the Rural-Urban continuum Classification Code
developed by the United States Department of Agriculture in 1980.
Supplies means items procured under a financial assistance agreement as defined by
applicable regulations for the particular type of financial assistance received.
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United States means any of the several States, the District of Columbia, the Commonwealth
of Puerto Rico, and any other territories and possessions of the United States.
Women's business enterprise (WBE) means a business concern which is at least 51% owned
or controlled by women for purposes of EPA's 8% statute or a business concern which is at
least 51% owned and controlled by women for purposes for EPA's 10% statute.
Determination of ownership by a married woman in a community property jurisdiction will
not be affected by her husband's 50 percent interest in her share. Similarly, a business
concern which is more than 50 percent owned by a married man will not become a qualified
WBE by virtue of his wife's 50 percent interest in his share.
§ 33.104 May recipients apply for a waiver from the requirements of this part?
(a) A recipient may apply for a waiver from any of the requirements of this part that are not
specifically based on a statute or Executive Order, by submitting a written request to the
Director of the Office of Small and Disadvantaged Business Utilization.
(b) The request must document special or exceptional circumstances that make compliance
with the requirement impractical, including a specific proposal addressing how the recipient
intends to achieve the objectives of this part as described in §33.101. The request must show
that:
(1) There is a reasonable basis to conclude that the recipient could achieve a level of MBE
and WBE participation consistent with the objectives of this part using different or
innovative means other than those that are provided in subparts C or D of this part;
(2) Conditions in the recipient's jurisdiction are appropriate for implementing the request;
and
(3) The request is consistent with applicable law.
(c) The OSDBU Director has the authority to approve a recipient's request. If the OSDBU
Director grants a recipient's request, the recipient may administer its program as provided in
the request, subject to the following conditions:
(1) The recipient's level of MBE and WBE participation continues to be consistent with the
objectives of this part;
(2) There is a reasonable limitation on the duration of the recipient's modified program; and
(3) Any other conditions the OSDBU Director makes on the grant of the waiver.
(d) The OSDBU Director may end a program waiver at any time upon notice to the recipient
and require a recipient to comply with the provisions of this part. The OSDBU Director may
also extend the waiver if he or she determines that all requirements of paragraphs (b) and (c)
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of this section continue to be met. Any such extension shall be for no longer than the period
originally set for the duration of the program waiver.
§ 33.105 What are the compliance and enforcement provisions of this part?
If a recipient fails to comply with any of the requirements of this part, EPA may take
remedial action under 40 CFR parts 30, 31 or 35, as appropriate, or any other action
authorized by law, including, but not limited to, enforcement under 18 U.S.C. 1001 and/or
the Program Fraud Civil Remedies Act of 1986 (31 U.S.C. 3801 et seq.). Examples of the
remedial actions under 40 CFR parts 30, 31, and 35 include, but are not limited to:
(a) Temporarily withholding cash payments pending correction of the deficiency by the
recipient or more severe enforcement action by EPA;
(b) Disallowing all or part of the cost of the activity or action not in compliance;
(c) Wholly or partly suspending or terminating the current award; or
(d) Withholding further awards for the project or program.
§ 33.106 What assurances must EPA financial assistance recipients obtain from
their contractors?
The recipient must ensure that each procurement contract it awards contains the term and
condition specified in Appendix A to this part concerning compliance with the requirements
of this part. The recipient must also ensure that this term and condition is included in each
procurement contract awarded by an entity receiving an identified loan under a financial
assistance agreement to capitalize a revolving loan fund.
§ 33.107 What are the rules governing availability of records, cooperation, and
intimidation and retaliation?
(a) Availability of records. (1) In responding to requests for information concerning any
aspect of EPA's DBE Program, EPA complies with the provisions of the Federal Freedom of
Information and Privacy Acts (5 U.S.C. 552 and 552a). EPA may make available to the
public any information concerning EPA's DBE Program release of which is not prohibited by
Federal law or regulation, including EPA's Confidential Business Information regulations at
40 CFR Part 2, subpartB.
(2) EPA recipients shall safeguard from disclosure to unauthorized persons information that
may reasonably be considered as confidential business information, consistent with Federal,
state, and local law.
(b) Cooperation. All participants in EPA's DBE Program are required to cooperate fully and
promptly with EPA, EPA Private Certifiers and EPA recipients in reviews, investigations,
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and other requests for information. Failure to do so shall be a ground for appropriate action
against the party involved in accordance with §33.105.
(c) Intimidation and retaliation. A recipient, contractor, or any other participant in EPA's
DBE Program must not intimidate, threaten, coerce, or discriminate against any individual or
firm for the purpose of interfering with any right or privilege secured by this part. Violation
of this prohibition shall be a ground for appropriate action against the party involved in
accordance with §33.105.
Subpart B—Certification
§ 33.201 What does this subpart require?
(a) In order to qualify and participate as an MBE or WBE prime or subcontractor for EPA
recipients under EPA's DBE Program, an entity must be properly certified as required by this
subpart.
(b) EPA's DBE Program is primarily based on two statutes. Public Law 102-389, 42 U.S.C.
4370d, provides for an 8% objective for awarding contracts under EPA financial assistance
agreements to business concerns or other organizations owned or controlled by socially and
economically disadvantaged individuals, including HBCUs and women ("EPA's 8%
statute"). Title X of the Clean Air Act Amendments of 1990, 42 U.S.C. 7601 note, provides
for a 10% objective for awarding contracts under EPA financial assistance agreements for
research relating to such amendments to business concerns or other organizations owned and
controlled by socially and economically disadvantaged individuals ("EPA's 10% statute").
§ 33.202 How does an entity qualify as an MBE or WBE under EPA's 8% statute?
To qualify as an MBE or WBE under EPA's 8% statute, an entity must establish that it is
owned or controlled by socially and economically disadvantaged individuals who are of good
character and citizens of the United States. An entity need not demonstrate potential for
success.
(a) Ownership or control. "Ownership" and "control" shall have the same meanings as set
forth in 13 CFR 124.105 and 13 CFR 124.106, respectively. (See also 13 CFR 124.109 for
special rules applicable to Indian tribes and Alaska Native Corporations; 13 CFR 124.110 for
special rules applicable to Native Hawaiian Organizations).
(b) Socially disadvantaged individual. A socially disadvantaged individual is a person who
has been subjected to racial or ethnic prejudice or cultural bias because of his or her identity
as a member of a group without regard to his or her individual qualities and as further
defined by the implementing regulations of section 8(a)(5) of the Small Business Act (15
U.S.C. 637(a)(5); 13 CFR 124.103; see also 13 CFR 124.109 for special rules applicable to
Indian tribes and Alaska Native Corporations; 13 CFR 124.110 for special rules applicable to
Native Hawaiian Organizations).
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((^Economically disadvantagedindividual. An economically disadvantaged individual is a
socially disadvantaged individual whose ability to compete in the free enterprise system is
impaired due to diminished capital and credit opportunities, as compared to others in the
same business area who are not socially disadvantaged and as further defined by section
8(a)(6) of the Small Business Act (15 U.S.C. 637(a)(6)) and its implementing regulations (13
CFR 124.104). (See also 13 CFR 124.109 for special rules applicable to Indian tribes and
Alaska Native Corporations; 13 CFR 124.110 for special rules applicable to Native Hawaiian
Organizations). Under EPA's DBE Program, an individual claiming disadvantaged status
must have an initial and continued personal net worth of less than $750,000.
(d) HBCU. An HBCU automatically qualifies as an entity owned or controlled by socially
and economically disadvantaged individuals.
(e) Women. Women are deemed to be socially and economically disadvantaged individuals.
Ownership or control must be demonstrated pursuant to paragraph (a) of this section, which
may be accomplished by certification under §33.204.
§ 33.203 How does an entity qualify as an MBE or WEE under EPA's 10% statute?
To qualify as an MBE or WBE under EPA's 10% statute, an entity must establish that it is
owned and controlled by socially and economically disadvantaged individuals who are of
good character and citizens of the United States.
(a) Ownership and control. An entity must be at least 51% owned by a socially and
economically disadvantaged individual, or in the case of a publicly traded company, at least
51% of the stock must be owned by one or more socially and economically disadvantaged
individuals, and the management and daily business operations of the business concern must
be controlled by such individuals. (See also 13 CFR 124.109 for special rules applicable to
Indian tribes and Alaska Native Corporations; 13 CFR 124.110 for special rules applicable to
Native Hawaiian Organizations).
(b) Socially disadvantaged individual. A socially disadvantaged individual is a person who
has been subjected to racial or ethnic prejudice or cultural bias because of his or her identity
as a member of a group without regard to his or her individual qualities and as further
defined by the implementing regulations of section 8(a)(5) of the Small Business Act (15
U.S.C. 637(a)(5); 13 CFR 124.103; see also 13 CFR 124.109 for special rules applicable to
Indian tribes and Alaska Native Corporations; 13 CFR 124.110 for special rules applicable to
Native Hawaiian Organizations).
(c) Economically disadvantaged individual. An economically disadvantaged individual is a
socially disadvantaged individual whose ability to compete in the free enterprise system is
impaired due to diminished capital and credit opportunities, as compared to others in the
same business area who are not socially disadvantaged and as further defined by section
8(a)(6) of the Small Business Act (15 U.S.C. 637(a)(6)) and its implementing regulations (13
CFR 124.104). (See also 13 CFR 124.109 for special rules applicable to Indian tribes and
Alaska Native Corporations; 13 CFR 124.110 for special rules applicable to Native Hawaiian
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Organizations). Under EPA's DBE Program, an individual claiming disadvantaged status
must have an initial and continued personal net worth of less than $750,000.
(d) Presumptions. In accordance with Title X of the Clean Air Act Amendments of 1990, 42
U.S.C. 7601 note, Black Americans, Hispanic Americans, Native Americans, Asian
Americans, Women, and Disabled Americans are presumed to be socially and economically
disadvantaged individuals. In addition, the following institutions are presumed to be entities
owned and controlled by socially and economically disadvantaged individuals: HBCUs,
Minority Institutions (including Tribal Colleges and Universities and Hispanic-Serving
Institutions) and private and voluntary organizations controlled by individuals who are
socially and economically disadvantaged.
(e) Individuals not members of designated groups. Nothing in this section shall prohibit any
member of a racial or ethnic group that is not designated as socially and economically
disadvantaged under paragraph (d) of this section from establishing that they have been
impeded in developing a business concern as a result of racial or ethnic discrimination.
(f) Rebuttal of presumptions. The presumptions established by paragraph (d) of this section
may be rebutted in accordance with §33.209 with respect to a particular entity if it is
reasonably established that the individual at issue is not experiencing impediments to
developing such entity as a result of the individual's identification as a member of a specified
group.
(g) Joint ventures. (1) A joint venture may be considered owned and controlled by socially
and economically disadvantaged individuals, notwithstanding the size of such joint venture,
if a party to the joint venture is an entity that is owned and controlled by a socially and
economically disadvantaged individual, and that entity owns 51% of the joint venture.
(2) As a party to a joint venture, a person who is not an economically disadvantaged
individual, or an entity that is not owned and controlled by a socially and economically
disadvantaged individual, may not be a party to more than two awarded contracts in a fiscal
year solely by joint venture with a socially and economically disadvantaged individual or
entity.
§ 33.204 Where does an entity become certified under EPA's 8% and 10% statutes?
(a) In order to participate as an MBE or WBE prime or subcontractor for EPA recipients
under EPA's DBE Program, an entity must first attempt to be certified by the following:
(1) The United States Small Business Administration (SBA), under its 8(a) Business
Development Program (13 CFR part 124, subpart A) or its Small Disadvantaged Business
(SDB) Program, (13 CFR part 124, subpart B);
(2) The United States Department of Transportation (DOT), under its regulations for
Participation by Disadvantaged Business Enterprises in DOT Programs (49 CFR parts 23 and
26); or
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(3) an Indian Tribal Government, State Government, local Government or independent
private organization in accordance with EPA's 8% or 10% statute as applicable.
(2) Such certifications shall be considered acceptable for establishing MBE or WBE status,
as appropriate, under EPA's DBE Program as long as the certification meets EPA's U.S.
citizenship requirement under §33.202 or §33.203.
(3) An entity may only apply to EPA for MBE or WBE certification under the procedures set
forth in §33.205 if that entity first is unable to obtain MBE or WBE certification under
paragraphs (a) (1) through (3) of this section.
(b) [Reserved]
§ 33.205 How does an entity become certified by EPA?
(a) Filing an application. In accordance with §33.204, an entity may apply to EPA's Office
of Small and Disadvantaged Business Utilization (EPA OSDBU) for certification as an MBE
or WBE. EPA's Regional Offices will provide further information and required application
forms to any entity interested in MBE or WBE certification. The applicant must attest to the
accuracy and truthfulness of the information on the application form. This shall be done
either in the form of an affidavit sworn to by the applicant before a person who is authorized
by state law to administer oaths or in the form of an unsworn declaration executed under
penalty of perjury of the laws of the United States. The application must include evidence
demonstrating that the entity is owned or controlled by one or more individuals claiming
disadvantaged status under EPA's 8% statute or owned and controlled by one or more
individuals claiming disadvantaged status under EPA's 10% statute, along with certifications
or narratives regarding the disadvantaged status of such individuals. In addition, the
application must include documentation of a denial of certification by a Federal agency, State
government, local government, Indian Tribal government, or independent private
organization, if applicable.
(b) Application processing. EPA OSDBU will advise each applicant within 15 days,
whenever practicable, after receipt of an application whether the application is complete and
suitable for evaluation, and, if not, what additional information or action is required. EPA
OSDBU shall make its certification decision within 30 days of receipt of a complete and
suitable application package, whenever practicable. The burden is on the applicant to
demonstrate that those individuals claiming disadvantaged status own or control the entity
under EPA's 8% statute or own and control the entity under EPA's 10% statute.
(c) Ownership and/or control determination. EPA OSDBU first will determine whether those
individuals claiming disadvantaged status own or control the applicant entity under EPA's
8% statute or own and control the applicant entity under EPA's 10% statute. If EPA OSDBU
determines that the applicant does not meet the ownership and/or control requirements of this
subpart, EPA OSDBU will issue a written decision to the entity rejecting the application and
set forth the reasons for disapproval.
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(d) Disadvantaged determination. Once EPA OSDBU determines whether an applicant
meets the ownership and/or control requirements of this subpart, EPA OSDBU will
determine whether the applicable disadvantaged status requirements under EPA's 8% or 10%
statute have been met. If EPA OSDBU determines that the applicable disadvantaged status
requirements have been met, EPA OSDBU shall notify the applicant that it has been certified
and place the MBE or WBE on EPA OSDBU's list of qualified MBEs and WBEs. If EPA
OSDBU determines that the applicable disadvantaged status requirements have not been met,
EPA OSDBU will reject the entity's application for certification. EPA OSDBU will issue a
written decision to the entity setting forth EPA OSDBU's reasons for disapproval.
(e) Evaluation standards. (1) An entity's eligibility shall be evaluated on the basis of present
circumstances. An entity shall not be denied certification based solely on historical
information indicating a lack of ownership and/or control of the firm by socially and
economically disadvantaged individuals at some time in the past, if the entity currently meets
the ownership and/or control standards of this subpart.
(2) Entities seeking MBE or WBE certification shall cooperate fully with requests for
information relevant to the certification process. Failure or refusal to provide such
information is a ground for denial of certification.
(3) In making its certification determination, EPA OSDBU may consider whether an entity
has exhibited a pattern of conduct indicating its involvement in attempts to evade or subvert
the intent or requirements of the DBE Program.
(4) EPA OSDBU shall not consider the issue of whether an entity performs a commercially
useful function in making its certification determination. Consideration of whether an entity
performs a commercially useful function or is a regular dealer pertains solely to counting
toward MBE and WBE objectives as provided in subpart E of this part.
(5) Information gathered as part of the certification process that may reasonably be regarded
as proprietary or other confidential business information will be safeguarded from disclosure
to unauthorized persons, consistent with applicable Federal, State, and local law.
(6) To assist in making EPA OSDBU's certification determination, EPA OSDBU itself may
take the following steps:
(i) Perform an on-site visit to the offices of the entity. Interview the principal officers of the
entity and review their resumes and/or work histories. Perform an on-site visit to local job
sites if there are such sites on which the entity is working at the time of the certification
investigation. Already existing site visit reports may be relied upon in making the
certification;
(ii) If the entity is a corporation, analyze the ownership of stock in the entity;
(iii) Analyze the bonding and financial capacity of the entity;
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(iv) Determine the work history of the entity, including contracts it has received and work it
has completed;
(v) Obtain a statement from the entity of the type of work it prefers to perform for EPA
recipients under the DBE Program and its preferred locations for performing the work, if
any; and
(vi) Obtain or compile a list of the equipment owned by or available to the entity and the
licenses the entity and its key personnel possess to perform the work it seeks to do for EPA
recipients under the DBE Program.
§ 33.206 Is there a list of certified MBEs and WBEs?
EPA OSDBU will maintain a list of certified MBEs and WBEs on EPA OSDBU's Home
Page on the Internet. Any interested person may also obtain a copy of the list from EPA
OSDBU.
§ 33.207 Can an entity reapply to EPAforMBE or WBE certification?
An entity which has been denied MBE or WBE certification may reapply for certification at
any time 12 months or more after the date of the most recent determination by EPA OSDBU
to decline the application.
§ 33.208 How long does an MBE or WBE certification from EPA last?
Once EPA OSDBU certifies an entity to be an MBE or WBE by placing it on the EPA
OSDBU list of certified MBEs and WBEs specified in §33.206, the entity will generally
remain on the list for a period of three years from the date of its certification. To remain on
the list after three years, an entity must submit a new application and receive a new
certification.
§ 33.209 Can EPA re-evaluate the MBE or WBE status of an entity after EPA
certifies it to be an MBE or WBE?
(a) EPA OSDBU may initiate a certification determination whenever it receives credible
information calling into question an entity's eligibility as an MBE or WBE. Upon its
completion of a certification determination, EPA OSDBU will issue a written determination
regarding the MBE or WBE status of the questioned entity.
(b) If EPA OSDBU finds that the entity does not qualify as an MBE or WBE, EPA OSDBU
will decertify the entity as an MBE or WBE, and immediately remove the entity from the
EPA OSDBU list of certified MBEs and WBEs.
(c) If EPA OSDBU finds that the entity continues to qualify as an MBE or WBE, the
determination remains in effect for three years from the date of the decision under the same
conditions as if the entity had been granted MBE or WBE certification under §33.205.
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§ 33.210 Does an entity certified as an MBE or WEE by EPA need to keep EPA
informed of any changes which may affect the entity's certification?
(a) An entity certified as an MBE or WBE by EPA OSDBU must provide EPA OSDBU,
every year on the anniversary of the date of its certification, an affidavit sworn to by the
entity's owners before a person who is authorized by state law to administer oaths or an
unsworn declaration executed under penalty of perjury of the laws of the United States. This
affidavit must affirm that there have been no changes in the entity's circumstances affecting
its ability to meet disadvantaged status, ownership, and/or control requirements of this
subpart or any material changes in the information provided in its application form. Failure to
comply may result in the loss of MBE or WBE certification under EPA's DBE Program.
(b) An entity certified as an MBE or WBE by EPA OSDBU must inform EPA OSDBU in
writing of any change in circumstance affecting the MBE's or WBE's ability to meet
disadvantaged status, ownership, and/or control requirements of this subpart or any material
change in the information provided in its application form. The MBE or WBE must attach
supporting documentation describing in detail the nature of such change. The notice from the
MBE or WBE must take the form of an affidavit sworn to by the applicant before a person
who is authorized by State law to administer oaths or of an unsworn declaration executed
under penalty of perjury of the laws of the United States. The MBE or WBE must provide the
written notification within 30 calendar days of the occurrence of the change.
§ 33.211 What is the process for appealing or challenging an EPA MBE or WBE
certification determination?
(a) An entity which has been denied MBE or WBE certification by EPA OSDBU under
§33.205 or §33.209 may appeal that denial. A third party may challenge EPA OSDBU's
determination to certify an entity as an MBE or WBE under §33.205 or §33.209.
(b) Appeals and challenges must be sent to the Director of OSDBU at Environmental
Protection Agency, 1200 Pennsylvania Avenue, NW. Mail Code 1230T, Washington, DC
20460.
(c) The appeal or challenge must be sent to the Director of OSDBU (Director) within 90 days
of the date of EPA OSDBU's MBE or WBE certification determination. The Director may
accept an appeal or challenge filed later than 90 days after the date of EPA OSDBU's MBE
or WBE certification determination if the Director determines that there was good cause,
beyond the control of the appellant or challenger, for the late filing of the appeal or
challenge.
(d) No specific format is required for an appeal or challenge. However, the appeal or
challenge must include information and arguments concerning why EPA OSDBU's MBE or
WBE certification determination should be reversed. For challenges in which a third party
questions EPA OSDBU's determination to certify an entity as an MBE or WBE under
§33.205 or §33.209, the third party must also send a copy of the challenge to the entity whose
MBE or WBE certification is being questioned. In addition, the Director shall request
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information and arguments from that entity as to why EPA OSDBU's determination to certify
the entity as an MBE or WBE should be upheld.
(e) The Director makes his/her appeal or challenge decision based solely on the
administrative record and does not conduct a hearing. The Director may supplement the
record by adding relevant information made available by any other source, including the EPA
Office of Inspector General; Federal, State, or local law enforcement authorities; an EPA
recipient; or a private party.
(f) Consistent with Federal law, the Director shall make available, upon the request of the
appellant, challenger or the entity affected by the Director's appeal or challenge decision, any
supplementary information the Director receives from any source as described in paragraph
(e) of this section.
(g) Pending the Director's appeal or challenge decision, EPA OSDBU's MBE or WBE
certification determination remains in effect. The Director does not stay the effect of its MBE
or WBE certification determination while he/she is considering an appeal or challenge.
(h) The Director shall reverse EPA OSDBU's MBE or WBE certification determination only
if there was a clear and significant error in the processing of the certification or if EPA
OSDBU failed to consider a significant material fact contained within the entity's application
for MBE or WBE certification.
(i) All decisions under this section are administratively final.
§ 33.212 What conduct is prohibited by this subpart?
An entity that does not meet the eligibility criteria of this subpart may not attempt to
participate as an MBE or WBE in contracts awarded under EPA financial assistance
agreements or be counted as such by an EPA recipient. An entity that submits false,
fraudulent, or deceitful statements or representations, or indicates a serious lack of business
integrity or honesty, may be subject to sanctions under §33.105.
Subpart C—Good Faith Efforts
§ 33.301 What does this subpart require?
A recipient, including one exempted from applying the fair share objective requirements by
§33.411, is required to make the following good faith efforts whenever procuring
construction, equipment, services and supplies under an EPA financial assistance agreement,
even if it has achieved its fair share objectives under subpart D of this part:
(a) Ensure DBEs are made aware of contracting opportunities to the fullest extent practicable
through outreach and recruitment activities. For Indian Tribal, State and Local and
Government recipients, this will include placing DBEs on solicitation lists and soliciting
them whenever they are potential sources.
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(b) Make information on forthcoming opportunities available to DBEs and arrange time
frames for contracts and establish delivery schedules, where the requirements permit, in a
way that encourages and facilitates participation by DBEs in the competitive process. This
includes, whenever possible, posting solicitations for bids or proposals for a minimum of 30
calendar days before the bid or proposal closing date.
(c) Consider in the contracting process whether firms competing for large contracts could
subcontract with DBEs. For Indian Tribal, State and local Government recipients, this will
include dividing total requirements when economically feasible into smaller tasks or
quantities to permit maximum participation by DBEs in the competitive process.
(d) Encourage contracting with a consortium of DBEs when a contract is too large for one of
these firms to handle individually.
(e) Use the services and assistance of the SB A and the Minority Business Development
Agency of the Department of Commerce.
(f) If the prime contractor awards subcontracts, require the prime contractor to take the steps
in paragraphs (a) through (e) of this section.
§ 33.302 Are there any additional contract administration requirements?
(a) A recipient must require its prime contractor to pay its subcontractor for satisfactory
performance no more than 30 days from the prime contractor's receipt of payment from the
recipient.
(b) A recipient must be notified in writing by its prime contractor prior to any termination of
a DBE subcontractor for convenience by the prime contractor.
(c) If a DBE subcontractor fails to complete work under the subcontract for any reason, the
recipient must require the prime contractor to employ the six good faith efforts described in
§33.301 if soliciting a replacement subcontractor.
(d) A recipient must require its prime contractor to employ the six good faith efforts
described in §33.301 even if the prime contractor has achieved its fair share objectives under
subpart D of this part.
(e) A recipient must require its prime contractor to provide EPA Form 6100-2—DBE
Program Subcontractor Participation Form to all of its DBE subcontractors. EPA Form
6100-2 gives a DBE subcontractor the opportunity to describe the work the DBE
subcontractor received from the prime contractor, how much the DBE subcontractor was
paid and any other concerns the DBE subcontractor might have, for example reasons why the
DBE subcontractor believes it was terminated by the prime contractor. DBE subcontractors
may send completed copies of EPA Form 6100-2 directly to the appropriate EPA DBE
Coordinator.
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(f) A recipient must require its prime contractor to have its DBE subcontractors complete
EPA Form 6100-3—DBE Program Subcontractor Performance Form. A recipient must then
require its prime contractor to include all completed forms as part of the prime contractor's
bid or proposal package.
(g) A recipient must require its prime contractor to complete and submit EPA Form 6100-
4—DBE Program Subcontractor Utilization Form as part of the prime contractor's bid or
proposal package.
(h) Copies of EPA Form 6100-2—DBE Program Subcontractor Participation Form, EPA
Form 6100-3—DBE Program Subcontractor Performance Form and EPA Form 6100-4—
DBE Program Subcontractor Utilization Form may be obtained from EPA OSDBU's Home
Page on the Internet or directly from EPA OSDBU.
(i) A recipient must ensure that each procurement contract it awards contains the term and
condition specified in the Appendix concerning compliance with the requirements of this
part. A recipient must also ensure that this term and condition is included in each
procurement contract awarded by an entity receiving an identified loan under a financial
assistance agreement to capitalize a revolving loan fund.
§ 33.303 Are there special rules for loans under EPA financial assistance
agreements?
A recipient of an EPA financial assistance agreement to capitalize a revolving loan fund,
such as a State under the CWSRF or DWSRF or an eligible entity under the Brownfields
Cleanup Revolving Loan Fund program, must require that borrowers receiving identified
loans comply with the good faith efforts described in §33.301 and the contract administration
requirements of §3.302. This provision does not require that such private and nonprofit
borrowers expend identified loan funds in compliance with any other procurement
procedures contained in 40 CFR Part 30, Part 31, or Part 35, subpart O, as applicable.
§ 33.304 Must a Native American (either as an individual, organization, Tribe or
Tribal Government) recipient or prime contractor follow the six good faith efforts?
(a) A Native American (either as an individual, organization, corporation, Tribe or Tribal
Government) recipient or prime contractor must follow the six good faith efforts only if
doing so would not conflict with existing Tribal or Federal law, including but not limited to
the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450e), which
establishes, among other things, that any federal contract, subcontract, grant, or subgrant
awarded to Indian organizations or for the benefit of Indians, shall require preference in the
award of subcontracts and subgrants to Indian organizations and to Indian-owned economic
enterprises.
(b) Tribal organizations awarded an EPA financial assistance agreement have the ability to
solicit and recruit Indian organizations and Indian-owned economic enterprises and give
them preference in the award process prior to undertaking the six good faith efforts. Tribal
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governments with promulgated tribal laws and regulations concerning the solicitation and
recruitment of Native-owned and other minority business enterprises, including women-
owned business enterprises, have the discretion to utilize these tribal laws and regulations in
lieu of the six good faith efforts. If the effort to recruit Indian organizations and Indian-
owned economic enterprises is not successful, then the recipient must follow the six good
faith efforts. All tribal recipients still must retain records documenting compliance in
accordance with §33.501 and must report to EPA on their accomplishments in accordance
with §33.502.
(c) Any recipient, whether or not Native American, of an EPA financial assistance agreement
for the benefit of Native Americans, is required to solicit and recruit Indian organizations and
Indian-owned economic enterprises and give them preference in the award process prior to
undertaking the six good faith efforts. If the efforts to solicit and recruit Indian organizations
and Indian-owned economic enterprises are not successful, then the recipient must follow the
six good faith efforts.
(d) Native Americans are defined in §33.103 to include American Indians, Eskimos, Aleuts
and Native Hawaiians.
Subpart D—Fair Share Objectives
§ 33.401 What does this subpart require?
A recipient must negotiate with the appropriate EPA award official or his/her designee, fair
share objectives for MBE and WBE participation in procurement under the financial
assistance agreements.
§ 33.402 Are there special rules for loans under EPA financial assistance
agreements?
A recipient of an EPA financial assistance agreement to capitalize revolving loan funds must
either apply its own fair share objectives negotiated with EPA under §33.401 to identified
loans using a substantially similar relevant geographic market, or negotiate separate fair
share objectives with entities receiving identified loans, as long as such separate objectives
are based on demonstrable evidence of availability of MBEs and WBEs in accordance with
this subpart. If procurements will occur over more than one year, the recipient may choose to
apply the fair share objective in place either for the year in which the identified loan is
awarded or for the year in which the procurement action occurs. The recipient must specify
this choice in the financial assistance agreement, or incorporate it by reference therein.
§ 33.403 What is a fair share objective?
A fair share objective is an objective based on the capacity and availability of qualified,
certified MBEs and WBEs in the relevant geographic market for the procurement categories
of construction, equipment, services and supplies compared to the number of all qualified
entities in the same market for the same procurement categories, adjusted, as appropriate, to
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reflect the level of MBE and WBE participation expected absent the effects of
discrimination. A fair share objective is not a quota.
§ 33.404 When must a recipient negotiate fair share objectives with EPA?
A recipient must submit its proposed MBE and WBE fair share objectives and supporting
documentation to EPA within 120 days after its acceptance of its financial assistance award.
EPA must respond in writing to the recipient's submission within 30 days of receipt, either
agreeing with the submission or providing initial comments for further negotiation. Failure to
respond within this time frame may be considered as agreement by EPA with the fair share
objectives submitted by the recipient. MBE and WBE fair share objectives must be agreed
upon by the recipient and EPA before funds may be expended for procurement under the
recipient's financial assistance agreement.
§ 33.405 How does a recipient determine its fair share objectives?
(a) A recipient must determine its fair share objectives based on demonstrable evidence of
the number of certified MBEs and WBEs that are ready, willing, and able to perform in the
relevant geographic market for each of the four procurement categories (equipment,
construction, services, and supplies). The relevant geographic market is the area of
solicitation for the procurement as determined by the recipient. The market may be a
geographic region of a State, an entire State, or a multi-State area. Fair share objectives must
reflect the recipient's determination of the level of MBE and WBE participation it would
expect absent the effects of discrimination. A recipient may combine the four procurement
categories into one weighted objective for MBEs and one weighted objective for WBEs.
(b) Step 1. A recipient must first determine a base figure for the relative availability of MBEs
and WBEs. The following are examples of approaches that a recipient may take. Any
percentage figure derived from one of these examples should be considered a basis from
which a recipient begins when examining evidence available in its jurisdiction.
(I) MBE and WBE Directories and Census Bureau Data. Separately determine the number of
certified MBEs and WBEs that are ready, willing, and able to perform in the relevant
geographic market for each procurement category from a MBE/WBE directory, such as a
bidder's list. Using the Census Bureau's County Business Pattern (CBP) database, determine
the number of all qualified businesses available in the market that perform work in the same
procurement category. Separately divide the number of MBEs and WBEs by the number of
all businesses to derive a base figure for the relative availability of MBEs and WBEs in the
market.
(2) Data from a Disparity Study. Use a percentage figure derived from data in a valid,
applicable disparity study conducted within the preceding ten years comparing the available
MBEs and WBEs in the relevant geographic market with their actual usage by entities
procuring in the categories of construction, equipment, services, and supplies.
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(3) The Objective of Another EPA Recipient. A recipient may use, as its base figure, the fair
share objectives of another EPA recipient if the recipient demonstrates that it will use the
same, or substantially similar, relevant geographic market as the other EPA recipient. (See
§33.411 for exemptions from fair share objective negotiations).
(4) Alternative Methods. Subject to EPA approval, other methods may be used to determine a
base figure for the overall objective. Any methodology chosen must be based on
demonstrable evidence of local market conditions and be designed to ultimately attain an
objective that is rationally related to the relative availability of MBEs and WBEs in the
relevant geographic market.
(c) Step 2. After calculating a base figure, a recipient must examine the evidence available in
its jurisdiction to determine what adjustment, if any, is needed to the base figure in order to
arrive at the fair share objective.
(1) There are many types of evidence that must be considered when adjusting the base figure.
These include:
(i) The current capacity of MBEs and WBEs to perform contract work under EPA financial
assistance agreements, as measured by the volume of work MBEs and WBEs have performed
in recent years;
(ii) Evidence from disparity studies conducted anywhere within the recipient's jurisdiction, to
the extent it is not already accounted for in the base figure; and
(iii) If the base figure is the objective of another EPA recipient, it must be adjusted for
differences in the local market and the recipient's contracting program.
(2) A recipient may also consider available evidence from related fields that affect the
opportunities for MBEs and WBEs to form, grow, and compete. These include, but are not
limited to:
(i) Statistical disparities in the ability of MBEs and WBEs to get the financing, bonding and
insurance required to participate; and
(ii) Data on employment, self-employment, education, training, and union apprenticeship
programs, to the extent it can be related to the opportunities for MBEs and WBEs to perform
in the program.
(3) If a recipient attempts to make an adjustment to its base figure to account for the
continuing effects of past discrimination (often called the "but for" factor) or the effects of
another ongoing MBE/WBE program, the adjustment must be based on demonstrable
evidence that is logically and directly related to the effect for which the adjustment is sought.
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§ 33.406 May a recipient designate a lead agency for fair share objective
negotiation purposes?
If an Indian Tribal, State, or local Government has more than one agency that receives EPA
financial assistance, the agencies within that Government may designate a lead agency to
negotiate MBE and WBE fair share objectives with EPA to be used by each of the agencies.
Each agency must otherwise negotiate with EPA separately its own MBE and WBE fair
share objectives.
§ 33.407 How long do MBE and WBE fair share objectives remain in effect?
Once MBE and WBE fair share objectives have been negotiated, they will remain in effect
for three fiscal years unless there are significant changes to the data supporting the fair share
objectives. The fact that a disparity study utilized in negotiating fair share objectives has
become more than ten years old during the three-year period does not by itself constitute a
significant change requiring renegotiation.
§ 33.408 May a recipient use race and/or gender conscious measures as part of
this program?
(a) Should the good faith efforts described in subpart C of this part or other race and/or
gender neutral measures prove to be inadequate to achieve an established fair share objective,
race and/or gender conscious action (e.g., apply the subcontracting suggestion in §33.301(c)
to MBEs and WBEs) is available to a recipient and its prime contractor to more closely
achieve the fair share objectives, subject to §33.409. Under no circumstances are race and/or
gender conscious actions required by EPA.
(b) Any use of race and/or gender conscious efforts must not result in the selection of an
unqualified MBE or WBE.
§ 33.409 May a recipient use quotas as part of this program?
A recipient is not permitted to use quotas in procurements under EPA's 8% or 10% statute.
§ 33.410 Can a recipient be penalized for failing to meet its fair share objectives?
A recipient cannot be penalized, or treated by EPA as being in noncompliance with this
subpart, solely because its MBE or WBE participation does not meet its applicable fair share
objective. However, EPA may take remedial action under §33.105 for a recipient's failure to
comply with other provisions of this part, including, but not limited to, the good faith efforts
requirements described in subpart C of this part.
§ 33.411 Who may be exempted from this subpart?
(a) General. A recipient of an EPA financial assistance agreement in the amount of
$250,000 or less for any single assistance agreement, or of more than one financial assistance
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agreement with a combined total of $250,000 or less in any one fiscal year, is not required to
apply the fair share objective requirements of this subpart. This exemption is limited to the
fair share objective requirements of this subpart.
(b) Clean Water State Revolving Fund (CWSRF) Program, Drinking Water State Revolving
Fund (DWSRF) Program, and Brow nfields Cleanup Revolving Loan Fund (BCRLF)
Program Identified Loan Recipients. A recipient under the CWSRF, DWSRF, or BCRLF
Program is not required to apply the fair share objective requirements of this subpart to an
entity receiving an identified loan in an amount of $250,000 or less or to an entity receiving
more than one identified loan with a combined total of $250,000 or less in any one fiscal
year. This exemption is limited to the fair share objective requirements of this subpart.
(c) Tribal and Intertribal Consortia recipients of program grants which can be included in
Performance Partnership Grants (PPGs) under 40 CFR Part 35, Subpart B. Tribal and
Intertribal consortia recipients of PPG eligible grants are not required to apply the fair share
objective requirements of this subpart to those grants. This exemption is limited to the fair
share objective requirements of this subpart.
(d) Technical Assistance Grant (TAG) Program Recipients. A recipient of a TAG is not
required to apply the fair share objective requirements of this subpart to that grant. This
exemption is limited to the fair share objective requirements of this subpart.
§ 33.412 Must an Insular Area or Indian Tribal Government recipient negotiate
fair share objectives?
The requirements in this subpart regarding the negotiation of fair share objectives will not
apply to an Insular Area or Indian Tribal Government recipient until three calendar years
after the effective date of this part. Furthermore, in accordance with §33.41 l(c), tribal and
intertribal consortia recipients of program grants which can be included in Performance
Partnership Grants (PPGs) under 40 CFR part 35, subpart B are not required to apply the fair
share objective requirements of this subpart to such grants.
Subpart E—Recordkeeping and Reporting
§ 33.501 What are the recordkeeping requirements of this part?
(a) A recipient, including those recipients exempted under §33.411 from the requirement to
apply the fair share objectives, must maintain all records documenting its compliance with
the requirements of this part, including documentation of its, and its prime contractors', good
faith efforts and data relied upon in formulating its fair share objectives. Such records must
be retained in accordance with applicable record retention requirements for the recipient's
financial assistance agreement.
(b) A recipient of a Continuing Environmental Program Grant or other annual grant must
create and maintain a bidders list. In addition, a recipient of an EPA financial assistance
agreement to capitalize a revolving loan fund also must require entities receiving identified
loans to create and maintain a bidders list if the recipient of the loan is subject to, or chooses
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to follow, competitive bidding requirements. (See e.g., §33.303). The purpose of a bidders
list is to provide the recipient and entities receiving identified loans who conduct competitive
bidding with as accurate a database as possible about the universe of MBE/WBE and non-
MBE/WBE prime and subcontractors. The list must include all firms that bid or quote on
prime contracts, or bid or quote subcontracts on EPA assisted projects, including both
MBE/WBEs and non-MBE/WBEs. The bidders list must only be kept until the grant project
period has expired and the recipient is no longer receiving EPA funding under the grant. For
entities receiving identified loans, the bidders list must only be kept until the project period
for the identified loan has ended. The following information must be obtained from all prime
and subcontractors:
(1) Entity's name with point of contact;
(2) Entity's mailing address, telephone number, and e-mail address;
(3) The procurement on which the entity bid or quoted, and when; and
(4) Entity's status as an MBE/WBE or non-MBE/WBE.
(c) Exemptions. A recipient of an EPA financial assistance agreement in the amount of
$250,000 or less for any single assistance agreement, or of more than one financial assistance
agreement with a combined total of $250,000 or less in any one fiscal year, is exempt from
the paragraph (b) of this section requirement to create and maintain a bidders list. Also, a
recipient under the CWSRF, DWSRF, or BCRLF Program is not required to apply the
paragraph (b) of this section bidders list requirement of this subpart to an entity receiving an
identified loan in an amount of $250,000 or less, or to an entity receiving more than one
identified loan with a combined total of $250,000 or less in any one fiscal year. This
exemption is limited to the paragraph (b) of this section bidders list requirements of this
subpart.
§ 33.502 What are the reporting requirements of this part?
MBE and WBE participation must be reported by all recipients, including those recipients
exempted under §33.411 from the requirement to apply the fair share objectives, on EPA
Form 5700-52A. Recipients of Continuing Environmental Program Grants under 40 CFR
part 35, subpart A; recipients of Performance Partnership Grants (PPGs) under 40 CFR part
35, subpart B; General Assistance Program (GAP) grants for tribal governments and
intertribal consortia; and institutions of higher education, hospitals and other non-profit
organizations receiving financial assistance agreements under 40 CFR part 30, will report on
MBE and WBE participation on an annual basis. All other financial assistance agreement
recipients, including recipients of financial assistance agreements capitalizing revolving loan
funds, will report on MBE and WBE participation semiannually. Recipients of financial
assistance agreements that capitalize revolving loan programs must require entities receiving
identified loans to submit their MBE and WBE participation reports on a semiannual basis to
the financial assistance agreement recipient, rather than to EPA.
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§ 33.503 How does a recipient calculate MBE and WBEparticipation for reporting
purposes?
(a) General. Only certified MBEs and WBEs are to be counted towards MBE/WBE
participation. Amounts of MBE and WBE participation are calculated as a percentage of total
financial assistance agreement project procurement costs, which include the match portion of
the project costs, if any. For recipients of financial assistance agreements that capitalize
revolving loan programs, the total amount is the total procurement dollars in the amount of
identified loans equal to the capitalization grant amount.
(b) Ineligible project costs. If all project costs attributable to MBE and WBE participation are
not eligible for funding under the EPA financial assistance agreement, the recipient may
choose to report the percentage of MBE and WBE participation based on the total eligible
and non-eligible costs of the project.
(c) Joint ventures. For joint ventures, MBE and WBE participation consists of the portion of
the dollar amount of the joint venture attributable to the MBE or WBE. If an MBE's or
WBE's risk of loss, control, or management responsibilities is not commensurate with its
share of the profit, the Agency may direct an adjustment in the percentage of MBE or WBE
participation.
(d) Central Purchasing or Procurement Centers. A recipient must report MBE and WBE
participation from its central purchasing or procurement centers.
(e) Brokers. A recipient may not count expenditures to a MBE or WBE that acts merely as a
broker or passive conduit of funds, without performing, managing, or supervising the work of
its contract or subcontract in a manner consistent with normal business practices.
(1) Presumption. If 50% or more of the total dollar amount of a MBE or WBE's prime
contract is subcontracted to a non-DBE, the MBE or WBE prime contractor will be presumed
to be a broker, and no MBE or WBE participation may be reported.
(2) Rebuttal. The MBE or WBE prime contractor may rebut this presumption by
demonstrating that its actions are consistent with normal practices for prime contractors in its
business and that it will actively perform, manage, and supervise the work under the contract.
(f) MBE or WBE Truckers/Haulers. A recipient may count expenditures to an MBE or WBE
trucker/hauler only if the MBE or WBE trucker/hauler is performing a commercially useful
function. The following factors should be used in determining whether an MBE or WBE
trucker/hauler is performing a commercially useful function:
(1) The MBE or WBE must be responsible for the management and supervision of the entire
trucking/hauling operation for which it is responsible on a particular contract, and there
cannot be a contrived arrangement for the purpose of meeting MBE or WBE objectives.
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(2) The MBE or WBE must itself own and operate at least one fully licensed, insured, and
operational truck used on the contract.
Appendix A to Part 33—Term and Condition
Each procurement contract signed by an EPA financial assistance agreement recipient,
including those for an identified loan under an EPA financial assistance agreement
capitalizing a revolving loan fund, must include the following term and condition:
The contractor shall not discriminate on the basis of race, color, national origin, or sex in the
performance of this contract. The contractor shall carry out applicable requirements of 40
CFR Part 33 in the award and administration of contracts awarded under EPA financial
assistance agreements. Failure by the contractor to carry out these requirements is a material
breach of this contract which may result in the termination of this contract or other legally
available remedies.
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Title 48: Federal Acquisition Regulations System
Subpart 370.5—Acquisitions Under the Buy Indian Act
370.500 Scope of subpart.
This subpart sets forth the policy on preferential acquisition from Indians under the
negotiation authority of the Buy Indian Act. Applicability of this subpart is limited to
acquisitions made by or on behalf of the Indian Health Service of the Public Health Service.
370.501 Policy.
(a) The Indian Health Service will utilize the negotiation authority of the Buy Indian Act to
give preference to Indians whenever the use of that authority is authorized and is practicable.
The Buy Indian Act, 25 U.S.C. 47, prescribes the application of the advertising requirements
of section 3709 of the Revised Statutes to the acquisition of Indian supplies. As set out in 25
U.S.C. 47, the Buy Indian Act provides as follows:
So far as may be practicable Indian labor shall be employed, and purchases of the products (including, but not
limited to printing, notwithstanding any other law) of Indian industry may be made in open market in the
discretion of the Secretary of the Interior.
(b) The functions, responsibilities, authorities, and duties of the Secretary of the Interior for
maintenance and operation of hospital and health facilities for Indians and for the
conservation of the health of Indians are transferred to the Surgeon General of the United
States under the supervision of the Secretary of Health and Human Services, 42 U.S.C. 2001
(a). Accordingly, the Secretary of Health and Human Services is authorized to use the Buy
Indian Act in the acquisition of products of Indian industry in connection with the
maintenance and operation of hospital and health facilities for Indians and for the
conservation of the health of Indians. This authority has been delegated exclusively to the
Indian Health Service and is not available for use by any other HHS component (unless that
component is making an acquisition on behalf of the Indian Health Service).
(c) Use of the Buy Indian Act negotiation authority has been emphasized in subsequent
legislation, particularly Public Law 94-437 and Public Law 96-537.
370.502 Definitions.
Buy Indian contract means any contract involving activities covered by the Buy Indian Act
that is negotiated under the provisions of 41 U.S.C. 252(c) and 25 U.S.C. 47 between an
Indian firm and a contracting officer representing the Indian Health Service.
Indian means a member of any tribe, pueblo, band, group, village, or community that is
recognized by the Secretary of the Interior as being Indian or any individual or group of
individuals that is recognized by the Secretary of the Interior or the Secretary of Health and
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Human Services. The Secretary of Health and Human Services in making determinations
may take into account the determination of the tribe with which affiliation is claimed.
Indian firm means a sole enterprise, partnership, corporation, or other type of business
organization owned, controlled, and operated by one or more Indians (including, for the
purpose of sections 301 and 302 of Public Law 94-437, former or currently federally
recognized Indian tribes in the State of New York) or by an Indian firm; or a nonprofit firm
organized for the benefit of Indians and controlled by Indians (see 370.503(a)).
Product of Indian industry means anything produced by Indians through physical labor or by
intellectual effort involving the use and application of skills by them.
370.503 Requirements.
(a) Indian ownership. The degree of Indian ownership of an Indian firm shall be at least 51
percent during the period covered by a Buy Indian contract.
(b) Joint ventures. An Indian firm may enter into a joint venture with other entities for
specific projects as long as the Indian firm is the managing partner. However, the joint
venture must be approved by the contracting officer prior to the award of a contract under the
Buy Indian Act.
(c) Bonds. In the case of contracts for the construction, alteration, or repair of public
buildings or public works, performance and payment bonds are required by the Miller Act
(40 U.S.C. 270a-270f) and FAR part 28. In the case of contracts with Indian tribes or public
nonprofit organizations serving as governmental instrumentalities of an Indian tribe, bonds
are not required. However, bonds are required when dealing with private business entities
which are owned by an Indian tribe or members of an Indian tribe. Bonds may be required of
private business entities which are joint ventures with, or subcontractors of, an Indian tribe or
a public nonprofit organization serving as a governmental instrumentality of an Indian tribe.
A bid guarantee or bid bond is required only when a performance or payment bond is
required.
(d) Indian preference in employment, training, and subcontracting. Contracts awarded under
the Buy Indian Act are subject to the requirements of section 7(b) of the Indian Self-
Determination and Education Assistance Act 25 U.S.C. 450e, which requires that preference
be given to Indians in employment, training, and subcontracting. The Indian Preference
clause set forth in 352.270-2 shall be included in all Buy Indian solicitations and resultant
contracts. The Indian Preference Program clause set forth in 352.270-3 shall be used as
specified in 370.202(b). All requirements set forth in subpart 370.2 which are applicable to
the instant Buy Indian acquisition shall be followed by the contracting officer, e.g., sections
370.204 and 370.205.
(e) Subcontracting. Not more than 50 percent of the work to be performed under a prime
contract awarded pursuant to the Buy Indian Act shall be subcontracted to other than Indian
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firms. For this purpose, work to be performed does not include the provision of materials,
supplies, or equipment.
(f) Wage rates. A determination of the minimum wage rates by the Secretary of Labor as
required by the Davis-Bacon Act (40 U.S.C. 276a) shall be included in all contracts awarded
under the Buy Indian Act for over $2,000 for construction, alteration, or repair, including
painting and decorating, of public buildings and public works, except contracts with Indian
tribes or public nonprofit organizations serving as governmental instrumentalities of an
Indian tribe. The wage rate determination is to be included in contracts with private business
entities even if they are owned by an Indian tribe or a member of an Indian tribe and in
connection with joint ventures with, or subcontractors of, an Indian tribe or a public nonprofit
organization serving as a governmental instrumentality of an Indian tribe.
370.504 Competition.
(a) Contracts awarded under the Buy Indian Act are subject to competition among Indians or
Indian concerns to the maximum extent that the Contracting Officer determines is
practicable. When competition is determined not to be practicable, a Justification for Other
than Full and Open Competition shall be prepared in accordance with 306.303 and
subsequently retained in the contract file.
(b) Solicitations must be synopsized and publicized in FedBizOpps at
http://www.fedbizopps.gov and copies of the synopses sent to the tribal office of the Indian
tribal government directly concerned with the proposed acquisition as well as to Indian
concerns and others having a legitimate interest. The synopsis must state that the acquisition
is restricted to Indian firms under the Buy Indian Act.
[71 FR 76515, Dec. 20, 2006]
370.505 Responsibility determinations.
(a) A contract may be awarded under the Buy Indian Act only if it is first determined that the
project or function to be contracted for is likely to be satisfactorily performed under that
contract and the project or function is likely to be properly completed or maintained under
that contract.
(b) The determination called for by paragraph (a) of this section, to be made prior to the
award of a contract, will be made in writing by the contracting officer reflecting an analysis
of the standards set forth in FAR 9.104-1.
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