Resolution 11910CITY OF ALAMEDA RESOLUTION NO. 11910
AUTHORIZING EXECUTION OF GRANT AGREEMENT WITH
VOLUNTEERS OF AMERICA FOR WINTER SHELTER
OPERATIONS IN FISCAL YEAR 1989-90
WHEREAS, The City of Alameda is a participant in the
Community Development Block Grant Program (CDBG) authorized under
the Housing and Community Development Act of 1974, as amended; and
WHEREAS, there is a need for winter shelter for homeless
persons; and
WHEREAS, it has been determined that the provision of
winter shelter services is an eligible use of funds under Section
570.201(e) of the CDBG regulations; and
WHEREAS, the City has programmed $13,671 in FY 1989-90
CDBG Entitlement funds for the purpose of providing winter shelter
services to homeless persons; and
WHEREAS, the Subgrantee represents it is qualified to
provide winter shelter services;
NOW, THEREFORE, BE IT RESOLVED by the Council of the City
of Alameda that the Mayor be and hereby is authorized to execute,'
and the City Clerk to attest, on behalf of the City, a Grant
Agreement with Volunteers of Alameda for Winter Shelte TgtO
in Fiscal Year 1989-90 (see Exhibit A attached).
(-1Q_
1, the undersigned, hereby certify that the foregoing Rescrita8rvEY
was duly and regularly adopted and passed by the Council of the
City of Alameda in regular meeting assembled on the 19th day of -
December , 1989, by the following vote to wit:
AYES: Councilmbers Arnerich, Carnicia, Withrow and President Corica
NOES: None.
ABSENT: Counci1raember Thomas - 1.
ABSTENTIONS: None.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the
official seal of said City this 20th day of December , 1989.
/
City Clerk of the City of Alameda
k.. 41:
INDEX TO WINTER SHELTER GRANT AGREEMENT
WITH VOLUNTEERS OF AMERICA /BAY AREA, INC.
1. The Grant
2. Term of Agreement
3. Statement of Work
4. Reporting, Recordkeeping and Monitoring
5. Requests for Funds
6. Special Federal Conditions
a. This paragraph (UDAG Exemptions) intentionally omitted.
b. Eligibility
c. Benefit
d. A -122
e. A -110
f. Conflict of Interest
g. Program Income
h. Reversion of Assets
i. Civil Rights /Equal Opportunity
1) CRA 1964
2) CRA 1968
3) Section 109 of HDCA 1974
4) Section 104(b) of HDCA 1974
j. This paragraph (Labor Standards) intentionally omitted.
k. Environmental Standards
1. This paragraph (National Flood Insurance) intentionally
omitted.
m. Employment and Contracting
1) This paragraph (EO 11246) intentionally omitted.
2) Section 3
n. This paragraph (Lead -Based Paint) intentionally omitted.
o. This paragraph (Ineligible Contractors) intentionally
omitted.
p. Program Accessibility for Handicapped Individuals
q. This paragraph (Displacement) intentionally omitted
r. Political Activity
s. Religious Activity
7. City Terms and Conditions
a. Personnel
b. Assignability
c. Insurance
d. Incorporation of Provisions Required by Law
e. Hold Harmless
f. Taxes
g. This paragraph (Ownership of Documents) intentionally omitted.
h. City Permits
8. Amendments to Agreement
9. Suspension and Termination of Agreement
10. Attachments
a. Budget
11. Exhibits (1 -5, 8, 9)
EXHIBIT A
GRANT AGREEMENT BETWEEN THE CITY OF ALAMEDA
AND VOLUNTEERS OF AMERICA /BAY AREA, INC.
FOR WINTER SHELTER OPERATIONS IN FISCAL YEAR 1989 -90
THIS AGREEMENT entered into this day of , 19 ,
by and between the CITY OF ALAMEDA (City) acting herein by William C.
Norton, City Manager, and Volunteers of America /Bay Area, Inc.
(Subgrantee) acting herein by , President of the
Board of Directors;
WITNESSETH THAT:
WHEREAS, the City is a participant in the Community Development
Block Grant Program (CDBG) authorized under the Housing and Community
Development Act of 1974, as amended; and
WHEREAS, there is a need for winter shelter for homeless persons;
and
WHEREAS, it has been determined that the provision of winter
shelter services is an eligible use of funds under Section 570.201(e) of
the CDBG regulations; and
WHEREAS, the City has programmed $13,671 in FY 1989 -90 Community
Development Block Grant Entitlement funds (Grant funds) for the purpose
of providing winter shelter services to homeless persons; and
WHEREAS, the Subgrantee represents that it is qualified to provide
said services in the manner described in Paragraph 3 below;
NOW, THEREFORE, the parties do mutually agree as follows:
1. Grant Amount
The City grants to the Subgrantee an amount not to exceed
$13,671 in Grant funds, to be expended by the Subgrantee in
substantial accordance with the Estimated Operating Budget,
included as Attachment A hereto.
2. Term of Agreement
The term of this agreement shall be for the four month period
beginning January 1, 1990 and terminating June 30, 1990.
3. Statement of Work
The Subgrantee shall operate a winter shelter for homeless
persons, to assist no less than 30 clients through the
provision of shelter, food and case management services as
detailed below:
Page 2
a. SHELTER AND FOOD
1) Assess referrals from other agencies and shelters,
rejecting unsuitable clients
2) Respond to direct inquiries from potential clients
and, if unsuitable, direct to more appropriate
resources
3) Complete procedures necessary for clients to reside
at shelter including an individual contract stating
client's goals and steps both the client and shelter
staff will undertake to achieve them
4) Provide a bed and locker for each client with
appropriate security and sanitary facilities
- Total of no less than 2700 bednights, based on 90%
occupancy of 30 beds for 120 days
Average residency of 60 days per client, with
actual residency based on individual assessment by
case manager
- Twenty -four hour staff supervision
5) Provide two hot meals and one cold meal to all
clients daily
b. CLIENT SUPERVISION
1) Orient and train clients to program rules and
procedures including caretaking tasks (tailored to
client skill level) to maintain the shelter
environment
2) Supervise and evaluate client performance, creating
an opportunity for client job references
3) Prepare clients for movement to transitional or
permanent housing
c. CLIENT COUNSELING
1) Individual and /or Group Counseling, while referring
those with major counseling needs to Alameda Family
Services, Four Bridges Creative Living Center and
other appropriate providers with which VOA maintains
referral relationships.
2
Housing Search Assistance, including information
regarding fair housing services, potential shared
housing opportunities, "move -in" assistance, and
referrals to Sentinel Landlord Tenant Assistance
Project, ECHO Rent Guarantee Program and other
appropriate assistance providers.
3) Individual Employment Assistance to shelter clients,
in addition to providing referrals to appropriate
assistance providers.
Page 3
4) Child Care Assistance including assessment of type
and amount of service needed and referral to Alameda
Red Cross, Bananas, Inc., and other approriate
referral and service providers.
d. CLIENT ADVOCACY
Maintain active referral relationships with other Alameda
County emergency shelter and service providers and
interact on clients' behalf regarding:
1) Benefits, e.g. AFDC, Social Security, Disability,
General Assistance
1) Education and other child - related services
2) Housing
3) Health care
4) Emergency food
5) Employment and /or training
4. Reporting, Recordkeeping and Monitoring
a. Bi- Monthly Performance Report
The Subgrantee shall prepare a performance report
describing the Subgrantee's accomplishments in fulfilling
the terms and conditions of this Agreement during the
period of operation. Such reports shall be submitted to
the Community Development Department by March 15, May 15,
and July 15, 1990, in a format to be approved by the
Community Development Department. Reports shall include,
but not be limited to:
1) Total unduplicated clients served, by number of
adults and children
2) Total units of service by category
3) Client demographics, i.e. race /ethnicity, family
size, female head of household, etc.
4) Client last place of fixed residence. (If
Alameda, last residence shall be given by Census
tract, using a map to be provided by the Community
Development Department. If outside Alameda,
residence shall be given by City or County.)
5) Total applicants denied service (both duplicated and
unduplicated turn - aways)
6) Total number of referrals to Subgrantee for winter
shelter services, and from whom
7) Total number of referrals by Subgrantee for winter
shelter services, and to whom
The above items shall be presented on a bi- monthly and
cumulative -to -date basis in each summary.
8) A narrative description of performance describing
qualitative aspects of the program, including a
Page 4
description of any problems encountered or
anticipated and corrective actions to be taken in
furtherance of the activities set forth in the
Statement of Work section of this Agreement.
b. Annual Report
The Subgrantee shall submit an Annual Report, no later
than August 1, 1990, summarizing the numbers and results
of direct client services and describing the
accomplishments of the Subgrantee during the 1989 -90
program year.
c. Miscellaneous Reporting
The Subgrantee shall notify the City in writing of any
changes in organizational by -laws, personnel and /or Board
of Directors.
d. Financial Audits
The Subgrantee shall submit a financial Audit Report no
less than bi- annually and within 180 days of the end of
the fiscal year audited. This audit shall be conducted by
an independent auditor in accordance with OMB Circular
A -110, which appears as Exhibit 2 of this Agreement.
e. Record Keeping
Records shall be maintained as necessary to document
performance required under paragraph 3 of this Agreement.
f. Monitoring
On -site monitoring of the Subgrantee may be conducted as
appropriate, with prior notice, to review program progress
and the financial and program records of the Subgrantee.
5. Requests for Funds
a. The Subgrantee shall submit to the City substantiated
requests for reimbursement of actual operating costs, in
accordance with the Request for Reimbursement Schedule,
the month following provision of services. The Schedule
and Request for Reimbursement form will be provided by the
Community Development Department.
b. The City shall reimburse funds in a timely manner and
according to the aforementioned Schedule.
c. Grant funds remaining at the end of the grant period shall
revert to the City unless otherwise agreed to in writing.
Page 5
6. Special Federal Conditions
a. This paragraph (Urban Development Action Grant Loan Repayment
Funds) intentionally omitted.
b. Eligibility
Within the permitted Statement of Work of the Subgrantee, the
eligibility of specific activities shall be determined in
accordance with criteria set forth in Sections 570.201, 570.202,
570.203, 570.204, 570.205 and 570.207 of the CDBG regulations.
c. Benefit
Within the permitted Statement of Work of the Subgrantee, the
expenditure of CDBG funds granted under this agreement shall
comply with one or more of the national objectives of the Housing
and Community Development Act of 1974, as amended, as set forth
in 570.208 of the CDBG regulations. In addition, Section 570.200
c(b)(2) shall apply: "Reasonable fees may be charged for the use
of the facilities assisted with CDBG funds, but charges, such as
excessive membership fees, which will have the effect of
precluding low and moderate income persons from using the
facilities are not permitted."
d. OMB Circular A -122
The provisions of A -122, "Cost Principles for Non - Profit
Organizations ", shall apply to this Agreement. (Exhibit 1)
e. OMB Circular A -110
The following attachments of A -110, "Grants and Agreements with
Institutions of Higher Education, Hospitals and other Non - profit
Organizations ", shall apply to this Agreement. (Exhibit 2)
1) Attachment A, "Cash Depositories ", except for Paragraph 4
concerning deposit insurance;
2) Attachment B, "Bonding and Insurance ";
3) Attachment C, "Retention and Custodial Requirements for
Records" except that in lieu of the provisions in paragraph 4,
the retention period for records pertaining to individual CDBG
activities starts from the date of submission of the final
annual performance and evaluation report in which the activity
is reported.
4) Attachment F, "Standards for Financial Management Systems ";
5) Attachment H, "Monitoring and Reporting Program Performance,"
paragraph 2 only;
Page 6
6) Attachment N, "Property Management Standards," except for
Paragraph 3 concerning the standards for real property, and
except that paragraphs 6 and 7 are modified so that:
(i) in all cases in which personal property is sold, the
proceeds shall be program income; and
(ii) personal property not needed by the subgrantee for CDBG
activities shall be transferred to the City for the CDBG
program or shall be retained after compensating the City;
and
7) Attachment 0, "Procurement Standards ".
f. Conflict of Interest
1) In the procurement of supplies, equipment, construction and
services by subgrantees, the conflict of interest provisions
in OMB Circular A -110 (Exhibit 2, Attachment 0) shall apply.
2) In all cases not governed by OMB Circular A -110, the
provisions of CFR 570.611 (Exhibit 3) shall apply. Such cases
include [but are not limited to) the acquisition and
disposition of real property and the provision of assistance
by the Subgrantee to individuals, businesses and other private
entities.
g. Program Income
For the purposes of this Subpart, the following terms shall
apply:
1) "Program income" means amounts received by the Subgrantee
generated from the use of CDBG funds. It includes, but is not
limited to the following:
(i) Proceeds from the disposition by sale or long term lease
of real property purchased with CDBG funds;
(ii) Income from the temporary use or leasing of properties
acquired with CDBG funds pending the disposition or use
for which the property was acquired;
(iii) Proceeds from the sale of personal property purchased
with CDBG funds;
(iv) Payments of principal and interest on loans made using
CDBG funds;
(v) Interest earned on funds held in a revolving fund
account;
(vi) Interest earned on program income pending disposition of
such income; and
Page 7
(vii) Fees charged to clients in conjunction with the provision
of services and /or financing assisted with Grant Funds.
2) Program income may be retained by the Subgrantee and used
during the period of this Agreement in accordance with the
terms and conditions of this Agreement, for activities set
forth in the "Statement of Work" section of said Agreement.
3) Program income earned shall be substantially disbursed to the
approved activities prior to requesting disbursement of
additional funds from the City. Subgrantees shall show all
program income generated using CDBG /UDAG funds as adjustments
on their requests for funds submitted to the City.
4) In the event that the Subgrantee is unable to expend all
program income in the grant period, it shall be treated as
carryover funds available in successive years during which an
Agreement between the City and the subgrantee exists. Any
program income on hand when the Agreement expires, or
received after the Agreement's expiration, shall be paid to
the City.
h. Reversion of Assets
1) Upon termination of this Agreement, the Subgrantee shall
transfer to the City any CDBG funds and /or equipment,
including program income, on hand at the time of termination,
and any accounts receivable attributable to the use of CDBG
funds.
2) This paragraph (Real Property) intentionally omitted.
i. Civil Rights /Equal Opportunity
This Agreement is subject to laws concerning Civil Rights and
Equal Opportunity including but not limited to:
1) Civil Rights Act of 1964
Under Title VI of the Civil Rights Act of 1964, no person
shall, on the grounds of race, color, or national origin, be
excluded from participation in, be denied the benefits of, or
be subjected to discrimination under any program or activity
receiving Federal financial assistance.
2) Civil Rights Act of 1968
Title VIII of the Civil Rights Act of 1968 ( "The Fair Housing
Act "), as amended, prohibits discrimination in the sale or
rental of housing, or the provision of brokerage services,
including in any way making unavailable or denying a dwelling
to any person because of race, color, religion, sex, national
origin, handicap or familial status (i.e. presence of minor
children).
Page 8
3) Section 109 of the Housing and Community Development Act of
1974
No person in the United States shall on the grounds of race,
color, national origin, or sex be excluded from participation
in, be denied the benefits of, or be subjected to
discrimination under any program or activity funded in whale
or in part with funds made available under this title.
Section 109 of the Act further provides that any prohibition
against discrimination on the basis of age under the Age
Discrimination Act of 1975 (42 U.S.C. 6101 et seq.) or with
respect to an otherwise qualified handicapped individual as
provided in Section 504 of the Rehabilitation Act of 1973 (29
U.S.C. 794) shall also apply to any program or activity
funded in whole or in party with funds made available
pursuant to the Act. For further information see Exhibit 4.
4) Section 104(b) of the Housing and Community Development Act
of 1974
Executive Order 11063, as amended by Executive Order 12259,
directs the Housing and Urban Development Department to take
all action necessary and appropriate to prevent
discrimination because of race, color, religion (creed), sex,
or national origin, in the sale, leasing, rental, or other
disposition of residential property and related facilities
(including land to be developed for residential use), or in
the use or occupancy thereof, if such property and related
facilities are, among other things, provided in whole or in
part with the aid of loans, advances, grants, or
contributions agreed to be made by the Federal Government,
HUD regulations implementing Executive Order 11063 are
contained in 24 CFR Part 107. For further information see
Exhibit 4.
j. This paragraph (Labor Standards) intentionally omitted.
k. Environmental Standards
1) Environmental reviews of CDBG- funded activities shall be
conducted by the City. The Subgrantee may be expected to
participate in the review process and may be delegated certain
responsibilities relative to the environmental review process.
2) The Subgrantee shall provide the City with information
regarding the location(s) or address(es) of specific
project(s) prior to implementation of said projects, and shall
notify the City of any situation or changes which may affect
the environmental review process. For further information see
Exhibit 5.
Page 9
1. This paragraph (National Flood Insurance Program) intentionally
omitted.
L. Employment and Contracting Opportunities
1) This paragraph (Executive Order 11246) intentionally
omitted.
2) Section 3
Section 3 of the Housing and Urban Development Act of 1968
requires, in connection with the planning and carrying out
of any project assisted under the Act, that to the greatest
extent feasible opportunities for training and employment
be given to lower income persons residing within the unit of
local government or the metropolitan area in which the
project is located and that contracts for work in connection
with the project be awarded to eligible business concerns
which are located in, or owned in substantial part by
persons residing in the same metropolitan area as the
project.
n. This paragraph (Lead -Based Paint) intentionally omitted.
o. This paragraph (Ineligible Contractors) intentionally omitted.
p. Program Accessibility for Handicapped Individuals
This Agreement is subject to laws and regulations concerning the
rights of otherwise qualified individuals with handicaps for
equal participation in, and benefit from federally assisted
programs and activities including but not limited to:
1) Nondiscrimination Based on Handicap (24 CFR 8)
These regulations implement Section 504 of the Rehabilitation
Act of 1973, as amended, as cited in Section 109 of the
Housing and Community Development Act. (See Paragraph 6.i.3.
of this Agreement.)
a. This paragraph (self - evaluation of related policies and
practices) intentionally omitted.
b. Each program or activity must be operated so that, when
viewed in its entirety, it is readily accessible to and
usable by individuals with handicaps. Subgrantees are
required to make reasonable accommodations (i.e.
adaptations of the facility, program or service) which
will allow a qualified individual with handicaps to
participate. However, Subgrantees are not required to
make each facility physically accessible and need not
take any action which can be demonstrated to impose an
undue financial and administrative burden.
Page 10
q.
c This paragraph (federally- assisted acquisition of
facility) intentionally omitted.
d. This paragraph (federally- assisted alteration to a
facility) intentionally omitted.
2) This paragraph (Architectural Barriers Act of 1968)
intentionally omitted.
3) This paragraph (Conflict between Accessibility Standards)
intentionally omitted.
This paragraph (Displacement) intentionally omitted.
r. Political Activity
1) This Agreement is subject to the Hatch Act (5 CFR 151) which
prohibits individuals employed by the Subgrantee from some
partisan political activities, including running for office,
coercing contributions and /or using his /her official
authority to influence or interfere with the outcome of
elections and nominations. (See Exhibit 8.)
2) In accordance with Section 570.207(a)(3), none of the funds,
materials, property or services under this Agreement shall be
used for any partisan politcal activity, or to further the
election or defeat of any candidate for any public office.
s. Religious Activity
In accordance with First Amendment Church /State Principles, as
implemented in Section 570.200(j), the Subgrantee will not:
1) discriminate against, nor give preference to, any employee or
applicant for employment on the basis of religion;
2) discriminate against, nor give preference to, clients on the
basis of reglion;
3) provide religious instructions, worship, services,
proselytizing nor exert any religious influence in the
provision of services under this Agreement; and
4) display religious symbols or decorations in the facility, or
portion thereof, used to provide such services.
For more information, see Exhibit 9.
Page 11
7. City Terms and Conditions
a. Personnel
1) The Subgrantee represents that it has, or will secure all
personnel required in performing the services under this
Agreement.
2) All of the services required hereunder will be performed by
the Subgrantee or under its supervision and all personnel
engaged in the work shall be authorized, if and as required
by State and local law, to perform such duties.
3) Any work or services subcontracted hereunder shall be
specified by written contract or agreement and shall be
subject to each provision of this Agreement.
b Assignability
The Subgrantee shall not assign any interest in this Agreement,
and shall not transfer any interest in the same (whether by
assignment or novation), without the prior written consent of the
City; provided, however, that claims for money by Subgrantee from
the City under this Agreement may be assigned to a bank, trust
company, or other financial institution without such approval.
Written notice of any assignment or transfer shall be furnished
promptly to the City by the Subgrantee.
c. Insurance
1) Insurance Requirements: The Subgrantee shall promptly
obtain, at Subgrantee's own expense, all the insurance
required by this section and shall submit an additional
insured endorsement to its policy, naming the City of
Alameda, to the City for review and approval. The insurance
requirements must be met prior to commencement of any work or
other obligation pursuant to this agreement.
The authorization to proceed with the work under this
Agreement will not be issued, and the Subgrantee shall not
commence work, until such insurance has been filed and
approved by the City. The Subgrantee shall not allow any of
its agents or subcontractors to commence work until all
similar insurance required of the Subgrantee has been
obtained. Such insurance shall remain in full force and
effect at all times during the prosecution of the work and
until the final completion and acceptance thereof.
2) Public Liability Insurance: The Subgrantee shall take out
and maintain for the life of the Agreement public liability
insurance, including automobile, in which the City of
Alameda, its officers, employees and agents shall be named as
additional insureds, insuring against loss from the liability
Page 12
imposed by law, contingent and otherwise, for injury to, or
death of any person or persons, or damage to real or personal
property, and arising in or by reason of or in connection
with the performance of the work herein contemplated, and
agreeing to defend against all claims, demands, actions, or
legal proceedings made or brought by any person by reason of
any such injury, death or damage and to pay all judgments,
interests, costs, legal and other expenses arising out of or
in connection therewith. This insurance shall provide for a
limit of not less than One Million Dollars ($1,000,000)
single limit for each accident or occurrence which may arise
from the operations of the Sugrantee in the performance of
the work herein provided for.
3) Workers' Compensation: The Subgrantee shall take out and
maintain during the life of the Agreement, Workers'
Compensation Insurance for all of the Subgrantee's employees
to be engaged in the work on the Project under the Agreement.
Should any work be sublet, the Subgrantee shall require the
subcontractor similarly to provide Workers' Compensation
Insurance, to be approved by the City Attorney prior to
commencing work, all in strict compliance with State laws and
to fully protect the City from any and all claims arising out
of occurrences on the work.
d. Incorporation of Provision Required by Law
Each provision and clause required by law to be inserted into
the Agreement shall be deemed to be enacted herein and the
Agreement shall be read and enforced as though each were
included herein. If through mistake or otherwise any such
provision is not inserted or is not correctly inserted, the
Agreement shall be amended to make such insertion on application
by either party.
e. Hold Harmless
Subgrantee shall indemnify and hold harmless City, its City
Council, boards and commissions, officers and employees from and
against any and all loss, damages, liability, claims, suits,
costs and expenses whatsoever, including reasonable attorneys'
fees, regardless of the merits or outcome of any such claim or
suit arising from or in any manner connected to Subgrantee's
negligent performance of services or work conducted or performed
pursuant to this Agreement.
f. Taxes
The Subgrantee further agrees to assume full responsibility for
payment to Federal and State agencies of any and all payroll
taxes, withholdings and worker's compensation which may be
required of it regarding its employees.
Page 13
g. This paragraph (Ownership And Use Of Documents) intentionally
omitted.
h. City Permits
The Subgrantee shall be responsible for obtaining all required
City permits and licenses and for complying with all applicable
City codes and ordinances. If this responsibility is delegated
by the Subgrantee to a consultant, it remains the responsibility
of the Subgrantee to confirm that these requirements have been
met.
8. Amendments To Agreement
a. Amendments, changes, modifications and /or deletions to this
Agreement shall be requested in writing by the Subgrantee and
approved in writing by the City prior to implementation.
b. Changes to the Statement of Work, budget line items,
recordkeeping and reporting requirements and similar substantive
portions of the work program may be allowed at the City's
discretion.
c. Terms and conditions of this Agreement required by federal,
state or local regulation and /or statute may not be waived by
the City.
9. Suspension And Termination
a. Termination of the Agreement for Cause: If the Subgrantee fails
to fulfill in a timely and proper manner his /her obligations
under this Agreement, or if the Subgrantee violates any of the
covenants, agreements, or stipulations of this Agreement, the
City shall thereupon have the right to terminate this Agreement
by giving written notice to the Subgrantee of such termination
and specifying the effective date thereof, at least thirty (30)
days before the effective date of such termination.
Notwithstanding the above, the Subgrantee shall not be relieved
of liability to the City for damages sustained by the City by
virtue of any breach of the Agreement by the Subgrantee, and the
City say withhold payments to the Subgrantee for the purpose of
set -off until such time as the exact amount of damages due the
City from the Subgrantee is determined.
b. Termination for Convenience of the City: The City for its
convenience may terminate this Agreement at any time by giving
at least thirty (30) days notice in writing to the Subgrantee.
If the Agreement is terminated by the City for convenience, the
Subgrantee will be paid for the time provided, expenses incurred
or obligated by contractual agreement as a result of fulfilling
the Statement of Work of this Agreement, up to the termination
date.
Page 14
IN WITNESS HEREOF, the parties have hereunto set their hands and seals.
CITY OF ALAMEDA
William C. Norton Date
City Manager
VOLUNTEERS OF AMERICA /BAY AREA, INC.
President, Board of Directors
ATTEST:
Date
Diane B. Felsch, City Clerk Date
APPROVED AS TO LEGAL FORM:
Carol Korade, City Attorney
GP:gp
219 /WinterGA 89.90
F: Winter Shelter /GA/89 -90
Page 15
Date
File: Est Op Budget
ITEM
PERSONNEL SERVICES
1. Salaries
2. Payroll Taxes
3. Fringe Benefits (14.5 %)
SUBTOTAL PERSONNEL COSTS
NON - PERSONNEL COSTS
1. Food
($4x27x120 days)
2. Utttilities
3. Telephone
4. Equipment
Office
Other (specify)
Rental Washer /Dryer
Trash Removal
S. Office Materiels
Postage
Printing /Copying
Consumables
Other (specify)
Household, Building &
Client Hygiene Supplies
6. Advertising /Promotion
7. Contract and Professional
Services (specify)
Insurance
Administrative Overhead
O. Other Costs (specify)
Transportation /Staff
Transportation /Clients
SUBTOTAL NON- PERSONNEL COSTS
GRAND TOTAL
1/9/87
BUDGET FORM NO. 1
To be used for Operating Budgets only
ORGANIZATION Volunteers of Arica /Bay AreA Inc.
FY 1989-90 GRANT FUNDS
PROGRAM INCOME
OTHER FUNDS
TOTAL FUNDS
$ 7,052.94
$26,677.06
$33,730
(included)
(included)
(included)
1,022 71
3,868.29
4,891
8,075.65
30,545.35
38,621
2,709.94
10,250.06
12,960
209.10
790.90
1,000
192.37
727.63
920
33.46
126.54
160
83.64
316.36
400
62.73
237.27
300
271.83
1,028.17
1,300
125.46
474.54
600
15%)1,781.36
6,747.64
8,529
41.82
158.18
200
83.64
316.36
400
5,595.35
21,173.65
26,769
$13,671.00
A
.51,719.00
$65,390.00
EXHIBIT 1
Tuesday
July $, 1080
Part 111
Office of
Management and
Budget
Circular A•122, °Cost Principles for
Nonprofit OrganTzatlons"
46022 •
r —
Federal Register 1 Vol. 45, No. 132 1 Tuesday,,uly, 1, 1980 1 Notices
ORIFICE OF IrtANAt3EMEHT AND -
1 CET
! vier A -122., "Cost Principles for
Org$r tsationa"
♦corer. OMce of Maaagemsnt and
ludget.
&CTtoet Final Policy.
public 000noente. The more stpsiscant aygnisant aseney and the recipient to
changes to the basic Circular and • negotiate when there is no basis for
Attaehunent A induda: determining the fair market value of the
3. Paragraph 2. "Supersession" ewes services rendered. and to permit indirect
added to the basic Circular to make It • 'nests allocated to donated services to be
dear t)at this Circular eupertle3es cost itiarged to u agreement or used to meat
principles issued by individual asencira cost sharing or matching requirements.
2. Paragraph 4 of the basic Ctrs:oh r ° • '. 4 Paragraph 3L equipment and other
leas been amended to make It clear that Capitol Zrpenthieres, was changed.
iise absence of an advance apemen on Capital equipmtilt is now.dclned as .
any element don't will not m &too f lariat an scquiettfon cost of ssoo and a
affect the reasonableness of at1oeabflity .useful hie of more than two years.
annsu rtr.This notice advises of a Dew
OMB Circular dealing with principles for
and other g eementswith grants, .
organizations. -
Tbt Circular is the product of an
interagency period. Its purpose is over a
provide
two-year
a et of cost principles to
replace existing principles issued by
#►dividual agencies. These have often
contained varying and conflicting
requirements, and created confusion
among agency admt. -sistators, auditors,
and nonprofit officials. The new Circular
w 1 provide a uniform approach to the
problem of determining costs, and
promote efficiency arid better
understanding between recipient& and
the Federal Government
Hesernve DATL The Circular becomes
chive on issuance.
t FJ*TNEet ottORMAT)OW CONTACT.
mer A. hiarcentonio, Financial
Management Branch. Office of
Management and Budget. Washington.
D.0 10303. (eat) 325-4773.
teveraMENTART tl4FORMAT10a: Before
the Circular became Final there was
extensive coordination with the affected
taonpro8t organizations, professional
associations, Federal agencies and
ethers. All interested persons were
• given an opportunity to comment on the
proposed Circular through informal
consultations and a notice in the Federal
Register. In response to our requests for
comment, we received about i00 letters
born Federal agencies, nonprofit
organisations, associations, and other
interested members of the public. These
Comments were considered in the final
version of the Circular. There follows a
summary of the major comments and the
action taken on each.
In addition to the changes described.
other changes have been made to
improve the clarity and readability of
The Circular. To the extent possible, we
leave tried to make the language of this
"reeler consistent with that of cost
inciples for educational institutions
ocular A -21.. and State and local
r vernments (Circular 74-4).
Summary of S/ nificant Changes:
54.1 forth ere changes that have been
° tirade in the final Circular as a result of
of that element Akio, tbisparaglaph • t pa agrapb 20. Maean's.
where an item of cost raquui�t tt(a'`t�a wquire>rent for char mesongs and
approval is specified in the *inferences as a direct cost was
approval of the budget oonetituitae isletsd. A sentence was added to make
approval of the cost $ clew such costa were allowable
Paragraph t of the basic Molt" provided they meet the criterion for the
has been changed to remove any doubt alowebility of cost shown In
as to which nonprofit orga dzatioco Attschrnent A.
would not be covered by the Circuits. • 8. Paragraph Zt. Ortonisotion Colts,
Now, Appendix C to tbt err War ]lists !Si was amended to provide that
was amended to make it eu t Osnferenees. The prior approval
ntsation costs maybe allowable
exclusions.
aeg a
4. Paragraph t was added to thalassic t en approved in writing by the
Circular to permit Federal agendas to inearding agency.
request exceptions from the . Paragraph 30, Pape Charges in
ee utrements of the Circular. hofession a I Journals, was revised to
S. Paragraph 2.2. was added* prvvtde that page charges may be
Attachment Ato cover the negotiation . allowable
acrd appra ai a'f indirect cost and & Paragraph 37, Public Information
to pprtovide for tante arrartteco . torvice Costs, was modified to snake
The more ant changes to • pabile information costs allowable as
Attachment B to the Circular Maude: aIIrect cpsy with awarding agency
1. Paragraph 5, Comperisosion jot approval
phrsonol Services. was modified to: t Paragraphs t3, Res+tol casts, was
a. Permit Fedaaf agencies to accept ai to:
t erscr ate system
or Otwear Slake it cleat that rental eaatts •
1 ilea h etas s ear
personae cost: ug reports. ander leases which errata a material
bClarIf7 rvvisr co tbs equity on property . arsons activity
the leased are
p ° wabls only to the amount that the
aDowabtlity of matt for workmen's. n aJmers • toganisation would have been allowed
aota ettsation et and costa • lad they purchased the property: e4..
atotaprnsatioa. and costa of insurance jepnctation or tree tIlowataocs,
policies on the Byes of trustees, driven, aaainte otion taxes, insurance, etc
err oiler em� o a• b Clarify the criteria for Material
a: 3daks tiaaTiowabie any incraasari va4olty testes. •
costs of pension plans cawed by 20. Paragraph Si, Travel Costs, was
delayed ftetding. w amended to delete the prior approval
d. Delete a paragraph approval f ompe tion d 'requirement for domestic travel. In
review and approv e . compensation addition to the above, a number of
individual employees.
2. Paragraph 3 Contingencies. wise . editorial charges were made to the
changed to make it clear that the tarn arigiaal document
''contingency reserves' excludes MR- yd Cbotti Not Considered
insurance reserves or pension fimda.. • Nom,•
i. Paragraph 10 was modified b
provide that the value of donated Comment Several respondents
services used is the performance of* %�oossstieried the provision that. for `less
direct cost activity shall be allocated a than arse's length' leases. rental oucooi a
Aare of indirect cost only when (a) the are allowable only op that
aggre ;ate value of the service la uld be allowed had title to the
material. (b) the services are supported roperty been vested in the grantee
by a significant amount of the indirect ct a!eeg��antutioa. In their opinion this rule
cost incurred by the organisation, sad t+ID rmlt in unnecessary cost to the
tc) the direct Cost activity 11 not punned federal Government strict it would
primarily for the benefit of the Federal am age an ergeritation to lease
Government. Provi' =nns were aloe space on the commercial market at
added to this parat-aph feu the higher rate.
Page 1 of 43
Fedcril Register / Vol. 45, No. 132 / Tuesday. July 8, 1950 / Notices
Response. The cost principles are
designed to cover most situations:
however, there are always exceptions
that must be considered on a case -by-
.see basis. The Circular contains a
provision for Federal agencies to request
exceptions.
Comment. Several respondents
questioned why Interest Ls not an
allowable cost since it is an ordinary
end necessary cost of doing business.
Response. It has been a longstanduag
policy not to recognnlzo interest as a cost.
However, this policy has rectally been
revised for State and lout governments
to Circular 744, with respect to the cost
of office space. The revision provides
that 'rental" rates for publicly owned
buildings may be based on actual costs.
hnciuding depreciation. interest,
operation and maintenace exists, and
other allowable costs. This revision was
tender consideration for some time. It
was studied extensively by O. the
General Accounting Office and others,
and considerable analysis went into Its
formulation. Suggestions for extendir>,g it
to nonprofit organizations would have to
be examined with equal care. This Des
sot yet been done. and we were
reluctant to further delay issuance of
this Circular.
Comment Several respondents
questioned why public information costs
were not allowable as an indirect cost.
_ Response. Public information costs
are often direct services to an
organization's other programs. They are
allowable, however, as a direct charge
when they are within the scope of work
of a particular agreement
Comment One respondent tttuested
that smaller grantees be excluded from
complying with the Circular.
Response. Similar rules for the 50
selected items of cost would be needed
regardless of the size of the grantee. To
the extent possible. the Circular
provides simplified methods for smaf er
'grantees.
Comment One respondent said the
requirements of the Cost Accounting
Standards Board should be applied to
Lover contracts with nonprofit
organizations.
Response. It teunlikely t st the type
iof grantees covered by this Circular
would have contracts large enough tote
covered by the CASB. In the event that
they do. however. the regulations of the
CASS would apply.
Comment One respondent said the
allocation of indirect cost to donated
services would post a tremendous
difficulty to the organisation.The
organization reties on a corps of
opproxirnatety !.elver committee members
carry out obligations in response to
-Government requests. There is no
employer relationship m the
arrangements for this assistance, nor are
there committee members normally
reimbursed for such services. Further, It
was pointed out the committee members
spend many thousands of hours ouUide
the orpanizatioo's premises conducting
research.
Response. It would appear that this .
type of committee arrangement would
not be considered in the determination
of the organizetthes indirect cost rate
provided that Federal agreements do not
bear an unreasonable share of indirect
cost. However, the cognizant agency
will be responsible for evaluating the
allocation of indirect cost where there
are committee-type arrangements on a
use- by-case basis.
Comment One respondent suggested
that wherever possible the language in
the Federal Procurement Regulations be
and for nonprofit organizations.
Response. The language in the Federal
Procwr ens Regulations was
designated primarily for commercial
firms, and is not necessarily well suited
to nonprofit organizations. At the
suggestion of the General Accounting
Office. the nonprofit cost principles
were written to conform as closely as
possible to those of educational
institutions (Circular A -21), and State
and local governments (Circular 74-4).
iota I. Loran.
Chief Financial Manggemsn,'tuna
tei sviar Na. A-122)
i
V. ttaao
,To The Heads of Executive
To and Establishments
Subject Cost principles for nonprofit
organizations.
1. Purpose. This Circular establishes
principles for determining costs of
grants. contracts and other agreements
with nonprofit organisations. It does not
apply to colleges and waversities which
are covered by Circular A-21 State,
local, and federally recognized Indian
tribal governments which are covered
by Circular 74.4; or hospitals. The
principles art designed to provide that
the Federal Government bear Its fair
share of costs except where restricted or
prohibited by law. Ths principles do not
attempt to prescribe the extent of cost
*hating or matching on grants, contracts.
er other agreements. However. such cost
sharing or matching shall not be
accomplished through arbitrary
limitations on individual cost elements
by Federal agencies. Provision for profit
or other Increment above coat Is outside
the scope of this Meader.
2. Supersession!. This Circular
supersedes cost principles issued by
individual arcades for nonprofit
organization.
S. Applicability. a. These principles
stall be used by all Federal etencies 1'
determining the colts of work perforr. .
by nonprofit organizations under jststts,
cooperative agreements. cost
selmbureement contracts, and other
contract to which coifs are used to
pricing, administration, or uttietaent.
All of these instruments are hereafter
referred to as swards. The principles do
sot apply to awards under which an
ertentutioo is not required to account
to the Government for actual costa
incurred. •
b. All cost reimbursement subewarda
'tsubgrants, subcontracts, etc.) art
subject to !hose Federal cost principles
applicable to the particular organiution
concerned Thus, if a subawtrd is to a
nonprofit organization. this Circular
shag apply; if a subaward is to a
commercial organization. the cost
principles applicable to commercial
concerns shall apply; If a anbawerd is to
a college or university, Circular A -21
shall apply,U. eubawardis to State.
kcal: or federally urcograted Indian
tribal government. Circular 74-4 shall
s. Definitions. a. Tikmpr+ofit
erganrsotion•meana any corporation.
bust. association. cooperative, or other
organization which (1)b operated
primarily for scientific. educational,
service, charitable, or sends! perposes
in the public lnterest (2) is not
organized primarily for profit and (3)
uses its set proceeds to maintain,
improve, and /or expastd its operations.
for this purpose. the term "nonprofit
organization" excludes (I) colleen and
11 tversttier, (iij hospitals; (W) State,
beat, and federally » d Indian
tribal governments; and (iv) those
nonprofit organizations which are
excluded from Coverage of this Circular
to accordance with paragraph 5 below.
b. `Prior appro means securing
the awardiru agency'* permission in
advents to incur cost for those hems
that are designated as requiring prior •
approval by the Circular. Generally this
pen:shalon will be to writing. Where an
item of cost requiring prior approval is
specified in the budget of an award.
approval of the budget
constitutes
approval of
1 Exclusion
nonprofit
ganlrations. Some nonprofit
srjanizations, because of their raze and
mature of operations, can be considered
to be similar to commercial concerns for
purpose of applicability oleos!
principles. Such nonprofit organizations
*hall operate under Federal coat
principles applicable to commercial
concerns. A !teeing of these
Page 2 of 13
...peter / Vol. iS No. 132 / Tuesday, jab, t. 1ti8t3 / Notices
snarl: adew is contained is
Attachment C. Other organisations may
bs added from that to time.
S. Re span, ribrlitiae. Agencies
rtsponalble for administering programa
alit involve awards to nonprofit
gatJtstions shad implement the
prov1aloat o! !hie Circular. Upon
request. tmptemerttiag inatreetim thrall
be furnhabed to the Gttica of
3iaaasement mad Budget Astatles shall
'designate a liaison official to carve as
tits agency ttpreeentatiro on matters
relating to the implementation of this
Circular. The name and title of ouch
representative shall be furnished to the
Chit of Maaseement and Budget
"within 30 days of the date of this
Circular. . • •
'. hooch ianb. The principles and
misted policy guides an set forth is tha
jpliowin; Attechaents:
Attachment A- General Principles
Attachment 15.--Selected Items of Cost
Attachment C- NoaproAt
Organiutions Not Subject to Ibis
Circular .
O. Requests for exceptices. The Oirts
toff Mai aje>neat and Budget may "
t
excerptions to the regainmenu o! this
Circular when permissible under
erzrating law. However, in the interest of
*thieving taaxirnum urtifortnity.
exceptions will be permitted oily to
highly unusual circumstances.
S. £ffectr've Dose. The provisions of
Otis Circular are effective Immediately.
Implementation shall de phased is by
iatorporatins the provisions into new
swards loads after the start of the
'rgaaisation'a next Betel year. For
misting awards tie oew, priodp)ee may
se applied If an organisation and the
avgnhsant Federal agency agree. Earlier
taple.mentatioa, era delay In
ospternentation of individual provisions
i also permtted by mutual agreement
*tureen an organization tad the
ogrtisant Federal agency.
10. Inquiries. Further Mfamatioa
oncoming this Circular easy be
'tamed by contacting the Financial
snagernent Branch Budget Review
ivisioa. Office of M.anageroent and
adget. Wasbiajton. D.0 10503. -t
Itpbone (202) 335 -1773.
ma T.1¢ctatyeo, k.
ream •
may Wa A -1122) •
fachtaom! A
semi Principles
Sb of Content
Sails Cortstderatiose
iorposition of twat taste
tcrbrs affecting atiowability efweb
*suitable costs
Aocabls tats
it Applicable credits
0 Advsoce understandings
,. Direct Carta
C Wilmot Casts
C. Allocation of Iadirsct Costs and
Determination of lodtrect Cost hates
S. General
2. Simplified altoestioa method
S. Multiple allocation bane method
4. Direct allocation method
S. Special indirect cost rates •
B. Negate boa am Approval of b d eve Cwt
Sates
t Definitions
S. Nsyotie tine and approval sf Estes
/Circular No. A-122)
Atte chmeat A
Coastal f4bcipies
A. Sink Caystidarvtions.
1 Compoe tine of mini aorta 11e total oat
of an sward istba sum of the aUowab.
*sect and alloabie tediract art lase any
applicable credits. •
t rectors efferent alleneibiliry enure,.
To be allowable under as award coot most
meet the following enrol criteria:
a. De are soluble for t! -i perforaaoes of dm
award and be aflomtble thereto wades theca
principles
b. Conform to any limits thane or escbmioaa
eel forth in these priaciptu or is the award
as to types or amount of cost items.
t De consistent with policies and
procedures that apply onifamiy s butt
federally financed and other activities of the
organize boa.
d. De accorded coast:teat treatment.'
a De determined in accorduse with
generally accepted accounting principles.
1. Not be included is a cost or treed to meet
Cost sharing or osatchir4 requirements of ray
Other federally fsnaacad program in either the
eurreat or a prior period.
Be g adequately documented
2. Reasonable' ewes. A cost b reasonable
C s its nature or smotimt. $ does not sxceed
litat which would be incurred by a prudent
person tinder the dreumatarces pntvall at
the time the decisive was made is incur de
testa. The gsestbn of the reasoaableoaaa
'specific coote sus: be scrutinised with
particular care its connec loo with •
*ryaniz$tion: or separate divtaiona'thereoi
which receive the preponderance of their •
support from swards made by Federal
agencies. to determining the reasonableness
of a given cost. oaiuideratiae Mall be pea
a. Whether the test le of a type leoersny
trecoyntred as ordinary and necessary for do
operation of the orlanisatioa et the
performance ce °f the swud.
1. The restraints sr requirements imposed
by such factors as generally accepted sound
business practices. arm look bsryetahp
Federal and State Lire and regulations, ad
therms and condition of the sward
e Whether Me tndtvtduah aonceraed acted
with prudence b the dreesetaoaa•
aenttderiny their emposai►WUes is the
erganiutios he esesbera employees. sad
•
ghetto. the public at lams, and the
Government.
d.Sipslncsnt devtetist. irma the
est.bUshed precticee if the organ1u 'a
wbtttb may aajnattfIabty increase the award
i°t A tlroebh awta
a A civet is &Doceble to a particul r coat
abjet iK such as a rum, promo. 'Jerrie& or
ether activity. b aocordaaca with the relative
benefits rsoelved" A oust is allocable b a
Government award If 11 M treated
sonslstestly wtd other costs incurred for the
wee purpose to like dretunetaaas sad if tt:
at) ha bound spretdcaDy for the sward
hensista both the award and odor week
and sea be distributed to reasoaabie
proportion rrtion t W benefits accused.
a
necessary to the overall spottier of
*1$rgentesttos. altbetrdb a direct
�9 a pie Agnes.
particular coat objective
b. Arty wet anscable to partials! sward
bust east *Wean alder thew }eineiplea
may sot be elided b °fiat restart/ swards to
emcran funding detickamea et to avoid
t estrktioat Imposed by law or by the mks
Oda award
& ANplicabla eradts.
an, term applicable credits Rica to
ikon `reeteipta. a redact= of espeadlrurss
•
which operate to olSeet sr 'educe menses
Items that are allocable to awards as direct
sr Iodine aorta. Typical examplas d eo&
bensactioos a,rs purcbaoe discounts. rebel's
altowaatxe. recovertas or bdsamitisa on
bases. bturaaa mho& sad adOiraisents of
overpayments K its chows. the
extent that each credits scervitng of tenoned
by the organization relate to allowable ooct
they shah be credited to the Corasseeet
alder es a cost Esda ctioo sr tag read as
i. � Instances tae asotmtareealred
leas the Federal Covert et to bars
seganitatloaat activities or terrier apersetcaa
should be burled se applicable waded
$pecldeslly, the matspt of mains such
sssdit hems against related egnaditwas
should M applied by the argentsataa to •
determtrtg de totes or amiss* n be
arganlutros
It ditermistrtg the Estee sr
arasounts to be chimed to Federal awards •
ler services rendered wbsaever the daddies
er ether resource, seed to tack
services hart been 0aaaoed dire. ba .
whole orb part. by Federal ftaoda.
a(c) For roles covering program biome •
B.t, Foes bcotas Nraed boa federally
supported sctivitiee3 nee Anadsaaat D of
OM Gondar A-110.
t. Advance am! w deatandirps. Under any
ghee swud the rreaaaableoasa and
aflocabhlity of certain terse of web a rube
death le determttia. Ws particularly am*
aoanedtss with float that naive •
prepoaderance of their support Inio Federal
agencies. Is wader is srotd subset/tat
diratloweace oe disports based so
etwsasosabkons sr soasfecabnity. • la
ghee desirable *soak a wrirtes eyre whit
with the awAtent se awarding every to
advaocs at cite ineu renos of ep.dal a
~al rob. The aba+os s?u *stream
agrstetssat ea any aimed of coat we eat is
lbelt affect tits reasonablawe w
allocabsiity of that dsmsai.
Page 3.of 13
F.deral Roesler J Vol. 4S. No. 132 j Tuesday, july 4 103 1 Notice&
A. Direct Casts
I. Direct costa are those that ens be
ideetified spscificetly alit a particular anal
soot objective: La- a particular award.
pylori. samc& et other direct activity idea
organize tion. Heenan, s coat may sot be
assigned to rut swerd as a direct cost Harry
ether cost incurred for the same purpose. m
like adrcuastsne.. ►as been allocated to as
award as an indirect met. Cost identified
specifically with awards are direct cost of the
awards and are to be assigned directly
thereto. Cost identified apecifcally evil other
final cost objectives of the organization are
direct costs of than cast objectives sad are
.rat to be attired to ether awards directly or
isi My dirad out eta minor amomst teary
be treated as an iadirsct cost afar reasons of
practicality where the accotart treatment for
such cost is consistently applied to ell lind
scot objectives.
t The con of certain ae t:Nidee are act
allowable as dunes to Federal awards (me,
for example, fund raising costs to psrapeph
St of Attachment >3). However, rem though
them coats art snatlo•nbls to proses of
somputisg charges to federal awards. they
saonethsless must be treated as direct oast for
puppies of determtnirta indirect cost rates
and be allocated their share of the
organize lion's Indirect costa V they represent
activities which (1) include the salaries of
'p�ecrsoruat (!)'occupy apace. end (a) benefit
!yore the oganization's indirect costs.
LT4,e cats of activities performed
tttrnart1y as a armlet to members, clients, or
the general public when significant sad
tomessary to the organisation's donee must
be heated as direct mats whoa or twit
allowable acid be allocated aa egsitebie
share of indirect costs. Scree examples of.
these types of activities indadr
a. Maintenance of membership rota,
subscriptions, publications. and related
o
b. Providing services and informatics le
ta►ereben. legislative oe administrative
bodies, or the public.
& Promotion. lobbying. sad other foveae Of
pebik relations,
d. Meetings and conferences except those
bald b cooduct the seaters! sda tiol tratice of
the organization. •
S. Malntenatas. protection, and t0Toetment
especial funds aot used la operation at the
letanization.
L Administration of group benefits so
tbebe2f of members of tents txludiap tits
and !wapitat insurance, annuity os retirement
plans, financial aid etc
lading! Omit •
1. indirect costs are those that hate barn
incurred for common or joint objectives and
tennot be readily. identified with a particular
Canal cost objective. Direct cost of tabor
amounts may be treated as !»direct nests
ander the conditions described In paragraph
$.2. shove. After direct costs lave been
determined and assigned directly to awards
ear other wort as appropriate. indirect costs
are those remaining to be allocated to
beMtties Coot ebjectivea. A Goat may sot be
allocated to as sward as as indirect poet If
soy other cost incurred foe the same purpose.
la ilia tareurost&acaa. las boss teapot to
ao award ua duvet met.
t because of the dlverw characteristics
and mows nag pre brae of aseprobt
ergo ntsanom. a to as possible to specify the
tbrpea emu ...lid ay be daunted as
tediren cwt Y aD alrwtte& Koweva. typical
example' of hdriaet most foe many nonprofit
sagasnisattoeu may Meloda dsp+adatiob et
ass allowaaces ere betiding., and putpluoV
the costa elel:o sting sad sealataisrisj •
4dlitita aad were admtnistrstioa sad
general exposers, such as the salaries cad
expenses of Laraine, otyicera,'anemia!
admdniatretisn sad.coo ®tics •
A A.Jlcsortrosr of lnefin ten Cast sad
Obterminotics of £»deviled Coat Antes.
Z •+r+srat
a When a aoesprost erjaaIsattos has .sly
ens major hectic& et where all rte+ magna
Kwctiocabcrient from Its Mince coats b
aQprtslmately the same degree, the
eloutios of indirect oar and for
computation of an tadirect coat rate any be
accomplished through simplified allow boa
procedures as dem:ribed is pa:graph 2
below.
b. Where u orgutisatioa has mewl sajae
!tractions witch beoent nom its iedtrset costa
m va ryt os derma. doca Laos of Ladino:*
costs may require the acarmulatioa of sari
costs tato separate cost poupts whic3 then
are allocated individually to beaelitiaj
functions by means of a bawl which beat
.ensures the relative degree of benefit. The
indirect coats allocated to as hand= ors
the diatn'butsd to lodividual awards and
other activities iaciuded in that duactic s by
imams of as Iadired mat nta(sj
&The determiosttoa of what constitutes as
esgaasizatioo's mafo fanrtiooa will depend as
Its purpose to heir the typist of serriaes tt
tenders le the public, client.. and w
ambers: e.ad the amount a/ effort it devotee
10 such activities as grad raisins public .
faformstioo sad merrberehip activities.
d. tpedfic methods for allocatioe indirect
soots and committee ledirect coat rate" alodg
with the condition. under which each aethod
Amid be toed are deacr(bd i• paragraphs 2
derv* f Wane.
a The bast periodfar the allocation at •
indirect cost 1r du period 1a which etc
costs sot Incurred and acetasulated tee
allocation we wort performed is that period
The base period nwaaIly should coincide
with the aa1utioo's Catalyses. but 1s my
eat elan be eo aet.cted as is staid .
tnequlttes to the aalocobos of the oats.
t SisrlpLyrsd aliaoot1on a. shod
a Where as orgaatutam's wage liaactiessa
benefit WE its teatime met to
approximately the cams degra. the entracten
of indirect costa "tidy be acooaplisbad by (1)
&peened the organization'. total ants for
due base paled as either direct or bdireet.
and (iij dividing the tiotatallowable iodine*
sorts feet of applicable credits) by as
'getable distr(butiors bare. The rem/tat this
proctse V aa indirect coat rate which la mod
M distribute indirect costs to isndividuel
awards. The rate should be expressed u the
peruatage "Aid the total aaonmt of
attowebk indirect meta bean to the Mss
eels-Met The method ahoetd aloe be mood
Mare u tsieolutiro las only sea major
tinnctios sscaecpualol s amber of
tlsdivtdud relict. s &C vtoea sad aaay be
shod where the inert at federal awards to as
lamngsatsatioe is rwnraty saaatL
boil the diesel mate sad the Mina
meet. aid oath a capital expenditrove sad
=allowable moat. tiewerar, eaeliawabla
meat. which nipraatet activities aaoat he
Secluded is thi dared oat t sada W
saoedtttots dajo4bed 1a parsereph Lt. der.,
s.The *tribunal base say be total direct
meats (exc edits melts! eapesd trove sad
other dhtor sag Items, sac► u major
emboostradt es arab utaj direct alerts.
sad wars. or other baaa whto remits to aa
equitable distribution. The dtatrervtioa hula
shalt gaaaraUy aadsda pertidpaat apart
scats as daltead Y parapap► is of
Attachseat a,
ti Lupt where a 'pedal rst.(s) y
ssppirirsd to *madame Mil pamper& US
below.** indirect oast rate developed erdes
tIu above prGsd bas h applicable to all
awards at the aeisalion.If a special
este(s) to ro apprvprists watt cations
*Sall to ma In order to develop the epecial
twtelel
S. Muf iph alto .tine bass awaited
a Whir' as sa:snares tadirect Goan
benefit its major feraettoo a to rarytay dr;r sea
euts costa shall be aoeuautated into aoparata
soot greepirep. ,Each peruples sbd thsa be
allocated individually to basetttin; Lactase
by mesa0 of a bass which best mansorea tna
rotative bdasat►
b. The grouptnes aloe he established se as
Se permit the alloatioe of each g- eupitsd oa
Se bash of benefits provided to the major
t action. each rosette .horrid cesastirute a
heart of etrpeasss that are et Lis cbanesar la
farms of the hyaenas/ they bandit ast he
terms of the allocation base which boat
teieasurs the relative beat Me prevtdd to satett
its:tetIon The wtbar at separate g; ouisp
should be held withis practical Umfta. taicaaj
Into coturiden ioa e►s`materiaaty of the
amounts iovelv.d and list deco stpa loo
s. Actual coadtdoas mast be tones Isla
account to 'electing the base to be cud as
Allocating ova expenses in alb ironivisa to
'benefiting huoctionaWken u allocatica ma
be made ay aaalp.meot of s wet 'moos
directly to the dandier banded. the
aflocataaa.bd be made is that maaec
When the expenses is a grouping ars`yet
general is sakes dm allocation amid be
.ands Waugh the aw sea ealscted brae
which produces results that ere somatahia to
bath the Comsat sad the organkatiare. Y
asbsrg aq cost abseal et coat related
Utter toodated with the orgastIsabatis
meet 4 poteatiaily edaptabit for sae as as
*DocaWs base provided (q it cat readily be
::pressed h tame of dollars of cobs/
vearotative measures (total direct mesa.
Litt salaries cad wage., tuff hour. spoiled.
avers Get toed lours ` of hinge swatmr of
document precor and papule lice w+rd sad
Ilse iike) sad (ti) it h Gcmmot to tba
boasrtities luaetioow during the btu period.
d Leapt where a epees] indirect oast
Mete! is required to accordance with
gergraph Di below. the sepr..'cte i
at
Wiring mate allocated to sack major
48028
Federal Repistor• 1 Vol, 45. No. 132 / Tuesday, July a, 1 "1 / Notices
Sanction shall be aprpted ant Feted ue a
sommcn pot for that function. The costa to
tab commoe poi shalt Horn be distributed to
divtsuaI ewers included in that fuactico by
e of a "mite indirect cost rate.
"Tau dLtributioe base seed in aompoting
s Indirect oat eats for each tsnetimt may
be total direct costs (excluding capital
expenditures and ether distorting items sock
as major subcontracts and subgrantej, direct
*starlet and wages. or other age which
tatutu d an equitable distribution. The
distribution bass shalt tentrally esc ode
participant support costa as de>ed in '
pars rapb ga. Attachment S. An todinct it
tote should be developed fir each separate
indirect cost pool developed. Thos rate to each
case should be stated as the parentage
which the amount of the particular te►direet
most pool to of the distribution bate identified
with that pool.
4. Ihrect ollo .atioa method
a. Some aonproilt organisation", Brett all
roosts as direct cost expect general
administration and genera! expense". These
organisations generally spirals their costs
Soto thre basic eatetories: (i) General
administration and tenerai expenses. (ti)
Stand nialrsg. and (iii) other direct functions
:including projects performed under Federal
swamis). joint cost, such as depredation.
rental costs. operation and 'maintenance of
hefinea telephone expenses, and the tike
an prorated indivisually as direct cost to
w each category apd to each award es other
activity sing a base most appropriate to the
*mirttader cost being prorated.
s. This method is acceptable provided each
ni cost Is prorated wing a bate which
uratt!y measures the benefit provided to
each award or other activity. The bases suet
be established to acmordence with resonabls
gaiter's., and be supported by current data.
This method is compatible with the
Standards of Accounting end Financial
Repotting tot Voluntary Heeltb and Welfare
Organisations Issued faintly by tbaNational
Health Council. Inc, the National Assembly
of Voluntary Health and Social Waller*
Organizations, and die United Way of
America.
•t. Under this method indirect cosh consist
"elusively of genera! administration and
general ezpemses. to all ether respects. the
- argentsaUon's indirect cost r"te"s site be
computed to the same manner as that
Inscribed in paragraph Di above.
L Special £ndirnt cost raw. la some
instances, o single indirect cost rate for as
activities of an or$eniution or for each sae*
function of the organisation ay sot be
appropriate, sine ft would not take trite
account hose different factors which may
substantially affect the indirect coots
applicable to particular segment of work
for this purpose. a particular spriest it
work. For this purpose. a particular sejmsat
of work may be tit performed seder a single
sward et It may consist of work seder a
*moil of awards performed to a cosmos
torment. the boors may Include the
Meat location of the work the levels!
aintptrativt support required the stun of
.''facilities or order rmsooces employed. the
scientific disciplines or technic.! skills
!evolved the organisational arrutgemeata
O
wed. or any wmbineten thtrcot. When a
particular segment of work is performed to an
environment which appears to generate a
significantly different level of indirect costs,
provisions should b evade for a sprite
indirect wit pool applicable to sod work. •
Tie "'pirate tndtrect cost foot shobtd be
developed dttrtrig the course of the typal:
atttoatton process. and thi separate indirect
cost rats resulting therefrom should be Deed
provided it is determined that (t�the rat
di! •-' signitiaatiy born that which would
Have been obtained ssnder pera rapb Di. S.
mad: above, sod (U) the volume of work to
which the rate woa3d apply is material. •
Nelotiotios tog !Approval of Minot Cart
asses.
1. Definrctona. As wed is thda section. he
totlewity terms have the Dworkin, est forth
below:
a "Cgileant agency' meant the Federal
agency responitbia for negotiating and
approving indirect cost rates for aonprpfit
organisation cm behalf of all Pederal
agencies. •
O. 'Predetermined rate' mean' an indind
east rate. applicable to a specified current or
future period 'Justly the or:anisatioes fiscal
pear. The rote is based on an estimate of the
costs to be facurred during the period A
predetermined rite is not subject to
adjustment
t. "Mod rate' attains an indirect cost Hate
which has the same characteristics as a
predetermined rate, except that the difference
.between the estimated costa and the actual
costs of the period covered by the rate is
earned forward as an adjustment to the rate
computation al subsequent period.
d. "Final rate" starts an indirect cost rate
applicable to a specified past period witch is
based on the actual costa of the period. A °
Mal rate boot subject to adjustment.
e. `Provisional rate' or bitting sets 'sew a
temporary Indirect cwt rate applicable to a
specified period which is used for funding
Interims reimbursement and reporting indirect
hosts on awards pending ths establidiment of
a fete for the period.
t'indi:ect cost proposal' weans the
documentation prepared by an organisation
Is substantiate its claim for Use .
reimburse emit of indirect oohs. TUa •
proposal provides the baste for the review
and negotiation keeling to the establiasosent
otu ertantsation's indirect cost rota
g. "Cost objective" beans • bastion.
orgsnisatfonal subdivision contract grant, se
ether work snit for which cost data are
desired end for which provision is sonde to
ecumulate and measure the coat of
processes. projrcu. jobs and capitalized
regrets.
S. Nt otlotlos cod gpprorrolaf mks.
a. Unless different arsngenunts are
speed to by the agendas costumed. W.
Federal agency with the largest dollar value
"(awards with ea Organisation will be
desfgsated as the cnitant agency for the
ae1ottation and approval of indirect colt
fetes end, when necessary, other rates sues
eis fringe benefit and computer clsargeeut
rates. Once an agency Is assigned cog+tzaoca
for a particular nonprofit organization. the
assignment mitt not be changed unless then
fa a msjor tong•term atstft to the dollar volume
et the Federal awards to the organisation. All
goncemsd Federal agencies shall be given the
opportunity to participate to the aesottatioa
recess, but than a fate bas bete agreed
upon it will be accepted by aft Federal
"gnadea When it Federal agency has reason
°
to betters that special epe:ratiag futon
.aftarctitg Its swards neonsatate special
twdirect coat rates At accordance with
paragraph Di abode, ft will prior to We time
the rates are negotjsts4 so lily the oz aisaat
•
b. A aooprofit artenisadoa which has tot
previously established an indirect cost rata
with a Federal agency shaft after the
organisation b advised that sa sward will be
wade sad. let so event alarm than threre
aroathe after the effective data of the .ward.
$.Organisations that Lave previously
ttetablished Wired cat rates smut sssbait a
sew Indirect roost proposal to the scant
regency within six months after the clots of •
Inch final year..
4. A predetermined rat, may be updated
far ate as swards where Wen b seasonable
assnrence, based on pest experience and
sellable projection of the ortantsation's costa,
rat the rate is sot likely to scared a rate
based oo We er=ustsatioa's acts! costa.
IL Fixed rates may be Detonated when '
pesdetsrmtaed rtes are sot considered
appropriate. A fixed rte. however, shall not
be negotiated LIP) all or a subatutlal portion
artthe ortanfutoe's awards are expected to
expire before the carry•forward adjust: set
can be made•, (fl) We mix of Government sad
toe- toverament work at the eerrgg.aiutioa h
goo erratic to permit as equitable carry•
Somme! adjustment; or (!ti) the orpnizatios's
.operations fluctuate siptifkantly from year to
teat.
L Provisional sod Mal rates abaft be
negotiated where neither predetermined aeon
Seed rata are appropriate.
_. The revolt. of each De:etatios sbati be
fxmatised to a written agreement between
Ile cognizant agency and ths troepretlt
erpnizaUon. Tb• imist asenc7 shall
distribute copies of the agreement to all
reed Federal agencies.
If a &sputa WWII fa a ate otiaton at an
indirect coat rata between the cognisant
aacacy sad We soaprotit ortaa1utiea the
disputa shall be resolved in eceordaaea with
the appeals procedures': tbe coptiunt
t To tb. extant that problems are
encouater.d moo* he federal epodes In
000arctios with the Detonation and approval
aa, the Office of &Sensaemeat and
t will lead asaistaaca at required to
teaslve suck problems is a timely auaeer.
fitrrular Nos. A•i•,tj
• Macheoem t
Selected heats dead
Tt•61s of Canto*
1. Advettietc stets
1 Sad deb a
i !ltd end proposal costa tecerved)
t Sending teats
>l Cosnmantcatlon costs
S. Compensation for penoaal services
I. Contingency provisions
•
•
Page 5 of 13
Federal f "Vv!. 13. Ho. 132 J Tuesday. !Ay L 2O20 / Notices
S. Depreciative and wee dlowastwas
*0. Donations •
St Ler pines eeorsie. health sad welfare
Metz sod credits
12. bstettsWent wets"
13. Equipment and ether capita! expenditures
14. Pirsao and penalties
u. friap benefits
!d. idle facilities and idle aapsaetty
17. tadepradent meant send derww1vpount
(r+aarved)
!i insurance and Mdezenlfieatioa
letemst fund raising and lovestaseet
omnipresent costa •
*3. Labor relations coats
at Losses as otter awards
22. Main Mamas and repelr moots
SS. Materials and supplies
*4. Meetings, Canferetaw -
*3. M+lembcnhip& e.bscriptiont, and
professional activity coats
!3 Organkadoe costs
37. Overtime. extra•pay shift, and rah labift
premiums
tit. Page charges to professional journals
b. Participant support coats
110. Patent Costa
31. Pension plans
Si Plant Kw :ft costa
S3. Pre sward corm
*4. Professional service costa
*3 Profits and bases cm dispoattios of
depreciable property err other capital
*tiers
1111. Public tr•foreastloa service costs
97. Publication and printing eosb
St Rearrangement and *heretic* soots
ia. Rewnvereioe costs
40. Rrcruitins costa
CI. Relocation Doan
it Rental costa
43. Royalties and other eons for tee of
patents and copyrigfsta
44. Remus* pay
43. Specialized service fiedities
M. Taws
47. Termite** seams
41-Training and education ovate
N, Tna:ppaartstien nab
*3. Travel oats
;lorctla'r Na A4flj
Attee3m et
•
$si.dad tteas d Cost •
Panpapba 1 Oomph 30 preside prise !pies
!o be applied to establishing the allow/ability
et tamale .tease of tort These Finn-pies
apply whether a cost ia treated as direct or
lsdireet ?allure to emotion a particular item
Boast is not intended to imply that it is
swallowable rattier determination as to
ellewebWty in tech case akoukd be based as
dm treatment or principles provided for
sieve se related items*ef asst
LAcSertiain reams.
t Advertising costs sees da wets esi
seedia services sad associated nets. Media
advettiaing includes magazines. newspapers.
stadia and television programs. direct set.
exhibits. and the like. -
b. The Duly advertising costs allowable are
*dose wile an solely far (1) the recruitment
of personaet when considered is mnfuneUoe
saki it oat: etmTYitrnent ta+ta, s. eat forth
fa parareph sit fill Use procurement dgoods
and aervieem (eft) the dispose! of snrphr'e
materials aegatred is de perfauaasoa des •
sward tempt whet orpanizatisetr are
aetsbursed foe disposals at a predetermined
eater!t het ooeordaaaa with Attachment N ad
OhO 4irt.s at•A -i!Q (•v) aped!*
inquiteaente of ifs sward •
t Sod debts. tad debts. Mclsdtrtg ionise
(*tattier eche? or swim led) arising bee
ahemtlaeta'bie oneeosata and other claims,
related oak action croaks. and related legal
.:Deis. are walls arable
S. t saa
os ev
a. tandir g as artoe wise. the
Goverment >un:tree unman what
!Meseta! loss te herr or DMus by name d
d► set or default d the organization. Tbey
attar abo b instances wee to arge tine
sequins similar tuarsaa bsdeded ars said
bonds as bid perfortnaaa, payment
advance payment Infringement asd ddelltp
toads.
b. Costs &bonding required pursues! to
Ile terms of tbs award are aUow.bi . •
t Costs of boodles& required by ihs
srtani:atioa la the enteral conduct deb
operations ars allowable to the eztrat dial
such bonding b b ecmrdaau with sound
business rectos tad the rates sad prececas
art reasonable wider the circumstances.
& Cornmeows,ioarioi nor& Costs incurred four
telephone amiss, iced and lobs distaaaa
tele ph cot ea ila, telegram', trediefpe ma.
postsgt and the Wee. are allowable.
♦ Compensation joy personal Perri es.
a Definition Cc.mpensaboa for personal
*orrice' tecledes aU compensation paid
marrently or staved by the organisation foe
services of caviares rsrsdertd dsstiii Pia
period e1 the award (recept as *Serena.
,fronded 1* pandspb s. Wow). h iodides.
t b set bmItad to sa amen, wasas,
diireetari dad uetaative aomasittee ssmbee e
lets. Mandel awards Male benefits.
penal= plea conk allows:s n fee ofs,rw
pay. Mutative pry. beatiae a1ewsnees. .
bardabip pay. and cost of brim diferu ob.
b. ADownbitity. Except u otbs�rrw»*
seed of m provided is this ant allowable to
sorts of act aompsastUeaa an
She extent that
(1) Total conspersatios to ledleideai
employees b rsasooable for de services
endered and coaferma to the established
policy tithe prgaatsatioa aonsi.tsaUy
*poised is both Government sad nor •
Government activities; aad
(t)Charges to awards whether treated as
direct or Ladino mots an determined and
supported u required b this paragraph.
t. Reusortoblenesa. • •
(1] When tie errginkadoe 4 prtdombutedy
mussed is activities other (Pena those •
sponsored by the Government a onpetteadoe
tar employees es Goveremeat•spoesored
ewerk will be raa►tdered reasonable to the
• extent that 11 b consistent with that paid for
atraflar work is Se orgisizatioa's staler
activitiK
it) whoa the.rgankatlea le predomkandy
engaged is Covernmenteponsered activities
and to cases where Lb" kind of ersployea
acquired for the Government activities are
tat hound in the organisaUoa i other
activities, aomp*atetioa for saployase ea
Gomnmestepoemored work wilt be
sonaid.rsd nameable to de utast that It la
.Damn .rabic d at paid for similar work lea
Sae la th
bor markets in wbkb the w aal:abbe
esuripetts far dee Wad of'sployss. lave/mid
d. Spada icrtanaldsrv&orsr s druranining
taDoerabdity. C:etais oaaditioas tegilre
special tt feties and peesibte kraltatioce
detertadale/ eaoM.seder federal awards
where u ousts tae Vpn dmbspeasatioa
appear acre's Amami such eoaditiaat
are the following
(3) Co:rmpenuatiaa fd aarabers oraate}robt
ego ntestions. * ssten, dlresiors. associates.
Welsra, ie the bassdlato families ti.arraoL
De tersslo s tioa should be made that sect
aoarpeesatace rsasaab t tar the usual
personal services rendered rather Man a
abstributioa of earn*, b Du d aorta.
(!% Any thane, is u orginizatkers
aompeteadve policy reeddft b s
substantial increase is the orpanizatioe's
levet of comperes tint particularly when it
eras oone:urrsat with se inmate in the ratio
u1 Government ewsrda to ether atlMries of
*1 ortentzatioe far arty dartge b tee
treatamcrrt of attawsbWysf *peetnc types eel
etatmpsnsatloe due to changes is Government
Pa Vnaflowabb ooetr Coats width are
unallowable wider ether parapippis of theta
Attachment attia0 sot be at*0wable under this
paragraph testy as the bask that they
consiitute preens, compensation
4. Printo beneflu.
(tt) frinse bessefita m the fors* of regular
oeepensstion paid to employees during
perleda of authorized absences from tit job,
suck he mention hem sick leave, military
Lava, .044., like. are allowable provided
such way art absorbed by all organization
activities is proportion to the relative amount
a flats or effort actually devoted to each
CI) flings benefits is the form of impkyer
ttootributfoas or expenses foe social security.
employee inswaaae, workmates
Sitirtpensattoti 3aaureace. pension plea cab
fare precept t below), and the ile, are
allowebte provided such bandits are granted
aaordaaa with established mikes
organization policies. Such bnests whether
thRated as Loot toots or as direct sots,
s`aD be distributed to particular swards sad
other acdvide. m a as consistent with
tee petters of bowel aterut:wg 10 11.
ledtvtduals ar coup d amptoyess whose
eateries sad wages are Chargeable two each
swards and .titer activities.
(3)(a) Provisioas for s reserve ander • ult.
buursnce prorate for aaemploys etst
asnpenset.oa at worlueres compumetiso
an allowable b the eztsat .hat the
provisions represent reasonable estimate. of
Ike tiabl)tUss far sock mmpeivattts wad the
lrpes /f aseerage. extent of covetsgt sod
sates sat predates would have brow -
aAOwablelad ta.urazQ beta mutinied to
grew !!a risks. However. provisions for sa)l-
tYturtd dabtlities which do sot become
payable for sore Chas oU pal after the
revisit* b trade :ha aoi sassad Lb.
psalm t vats, or the :ability. .
a) Wiser* u srieaiutiioa failure a
atetsaistent poky of expensing actual
payments to. or on belied' cL essptoysas or
Page 6 of 13
411029 Federal Rey' tr / Vol. 45, No. 132 / Tuesday, July ► 'SW / Notices
donut emploiwe for saeaspheyment
somprasenoa or workman's compensation.
suck payments ate allowable b the you of
payment with the prier apppr rat ed the
awarding setney provided they are anointed
to afl acti*'tttes of the organisation.
N) Costs of laauraaa oe tbs lives of
tutees, officers. or other employees looldiu
puttees of etmtl:r reeponsfbWty acs
allowable only to the extent that the
Unmans repreents additional
asompenaatioa'T%e costa of we, Insures= •
erbeo the organisation is used as
benesdary are sasnallosvabta`
iPe: tar plan mss.
)Costs of the or/eel:Aloc's pane= plan
ch are Moaned to accordance with the
settbbelsed polldes ad tie uTentsatiao are
allowable, pnvvidei
(a) Such policies meet de teal 1
as soaabienesc
(b) The methods of out afoattoa are sot
discisminatory.
(e) The out asatort d to each local you to
detsrtnin.d to accordaaa with gnerelly
accepted acmuatiag principles as prescribed
1a Accounting Priadpiee board Optaioa No. $
Issued by the Americas Institute of Certified
lbblic Aaounteet : and
(d ) The costs assigned to a given Sued year
are funded for all plan ut ripest' wtthia six
asoaths after to sad of p that year. However.
Increases to normal and past &emir.. pension
costs caused by a delay to hooding the '
*vivaria! liability beyond 30 days after each
quarter of Lb. rear to which such sesta are
assignable are unallowable.
(2) Psas(on plan termination Iaenrance
pprresmuses paid pursuant to the Employee
itatiremeat Lacome Security At of 1ye riPeb.
L13 -4041 aro allowable Late payment
shar=es ea each premiums an uaaliowabts.
(3) Luise taco co accumulated funding
deficiencies sad other penalties tmpoeed
order the Employee Retirement beams
Security Act ars unallowable.
t brnndw compensation. lecantre
compelled ton to employees baud on cost
!eduction, or sthdent performance.
eaggeotian awards. urery sward& ate,, ere
*llowable to the extent that the
- .a;rosrpenutioa is determined to be resemble
and trod costs art paid or accrued pursuant
tat to agreement entered into k good faith
between the organization and the employees
before the eervtces were rendered or
pursuant to as established plan followed by
the organisation to consistently as to tmp}y.
b effect as agreement to We nth
payment •
I. Overtire*. extra pot &Alt and' naahinhtit
>rsmtums. Set parsptpb V.
Severe/tor pcy. See paragraph 44
Tlsiruyy and War:olion oast. See
par. elm K
1. Support of solorfes acrd w '.. •
(1) Charles to awards for salaries and
wage.. whether treated as direct costa or
Indirect asena,wrty be based on docun•ented
payrolls sr-proved by a responsible oflicial(s)
et the orge nation The distribution of
salaries tad wages to awards must be
supported by personnel settvity reports u
prescribed in subparagraph (2) below, euept
when t substitute system his been approved
In writing by the the coi(unt agency. (See
garagrapb L2 of Attachment A)
Reports re8xtirsg the distributioa std
activity of each easploree tout be
tteatatataed for ell eta. mambas
(profeutonab sad sonprofeutoaals)
Map* tut= is charged, to elude se In part.
411r.etty to sods. b aciditiaes, b cedar to
wdppbrt the aiocadoa,of fadirici costa. tech .
imports must else be aalatateed foe saber
employees whose work Involves two or more
tkadtoas at activities it a distribution coheir
*ompensatioe between such 'muttons car
•ctivttiee b eroded is the dstermioatioe 0
gibs organisatioo'e indirect oast rate(s)
an employee angeted p.rt -bore b
net activities sad pars -tore b a duvet
function). Reports roainta1aed by sacprs+Ilt
agaaisatioas tai satisfy thew uhermests
must mast the following tiatsdards
(a) The reports mast reflect as of er.th .
abet determinates es of the actual activity el
each employee. budget estimates (Le.,
estimates deternsie d before the wakes are
performed) do sot qualify u airport kit
Charges to swards.
(b) Each report must account kr the total
activity for which employees ors
sompenutad anad which to required is
1u26tlaseat of tbstr obligations to the
luniudo .
e) The reports must be 'fined by file
hedividui! employee. sr by a respcsible
supervisory oflidtI 'saving Bret band
bowtedi, of the activities performed by the
omptoyse, that the distribution of activity
tepreseats a nameable estimate of the
actual work performed by the employee
dwrireg the periods covered by ghee report&
(d) T'be reports must be prepared at least
monthly and moat coincide with cos cc more
My Period&
p) Chargel for the salaries and wages of
aoaprsfesstoaal employees. In addition to de,
supporting documentation described In
cub ragripa g� pia (1) and (s) above must also
be supported by records tndieating the total
*umber *floors worked each day •
maintained in ooaformasce with De t
at Libor riWa toes tmptementing alb Tarr
Labor Stas4ards Act (ta C R Para tit). Pa
this yarn**. the term "lcaprofessioesal
employee° than law the use an u
"boot Aemployes.' ooder the Pair Labor
Standards
(41 Wavle' and wages atemptoytes used
la meeting cost sharing or asatehL
eequireaneeta.n swards most be supported t,
the same meaner as eateries and wises
attained foe retmbo sentient hem awarding
�! s&
dC ntlrWncy pn risl rat. Ceatrfbsetoas to
a cootiagesuy reserve car any deader
prsvtstoe made for event. the eccurreaau of
wbicb =sot be foretold with certainty as to
tee. Istanalty, or with en 'swum t+f their
bappentne. are unallowable. The term •
'bootiageacy reserve' excludes self-
insurance tusrvss (see paregrapb LLD) and
111.a.(2)(d)1; undue Pueda (see pwpspb
$4ilk and reserves for normal severance pay
fees paragrapl 44 ibx11
t Contributions. Contributions and
donations by the orgasbatios M Wham aro
unallowable.
ti Depreciation anisrss efoaau+esa
es Compensation for the yea of burid' :.rrs,
other capital Improvement& and equip/seat
am head usay be made Snug& to
allowances er depreciation Xcwersa, except
as pfvrtdad Ispararapb L below a
eambtnatlon aitubetwe sehoods may sot be
seed to ooneectios with a abet clue o!
Seed web (e {. bsd3dis>it, andoe Rat
eempvter equipment. etc}
b. The wards goo eau alloweeces sat
a(f.prtdatice 4,, al be based on the
•cesilsitiot ant of the meets tsvolnd. Tae
acrodeltioa.00t odaa Hatt donated to the
segenisattos b1' &. pay shall be Its lair
market valve at be limo of the donation.
a: The aompotatioa try us allowances or
dsprscia tim wid estlsda.
p) The net 1 tad:
Aay partton tithe met artbs:rdings sad
equipment berm by or donated by the
'.dart! Goverameat Intl et a of where
ens was origtaaiiy vetted or where it
presently resides; sad
P) Any portico tithe cost of bulldloce asd
equipment pcatrtbntad by or tot the
emu-tut= to satisfaction of* statutory
matslaag retirement
l
Mere the sae Or: wanes bl hod ie
jbllowtd the nu allowuua far buddlop sad
(improvement (inciudiag !and tsar avezents
each as paved parking areas, faeces, sad
tlidewsIlu) will be computed at as rand
tate not exceeding two peroeat of aoquiattion
net he use allowance for equipment will
be computed at as annul rata not austdire
ate and two-thirds percent of acquisitors cost
Wben the sus allows:a method to raced for
buildings the attire budding must be tented
ea a siegle suet dm bu3dng'e oomposeat
(ai. plumbing system luting tad air
eoadttionfad etc) cannot be segregated from
tM
building's abet The two percent
lienitatiote however. seed oot be applied to
equipment which 1. merely attached or
listened to the building but sot putrs�ueat}y
bud to it and which to used as ho tehings or
decoration of for spedalised purposes (s
destst chain and dratai treatment unite.
nutters. laboratory benches tilted to the .
Soot, diabwasber& carpetir4 etch bomb
equipment will be considered u oot being
parmaaeatly fixed to dee buddies tf lima be
tsmoved eritbovt the need for mostly se
atntensfve atts»tioas or repairs to the
botldta= or Ibe.gnipmeat Equipment that
treats these criteria wlil be subject to tie six
sod two-thirds percent equipmaat sue
allowance badtatios.
e. Mae depredation method is MMAowed,
Su period of asefut service (useful !tie)
MtabU A.d m each case fee usable capital
saean must take tato consideration web
Orton as type of ccestrvctios. mature sf the
equipment and technological developments
Ice the particular progress arse rued the
einewal sad replacement petkdet followed
for the the bdiridual Items or clines et
tseet.lnvolved Tim teethed of depredates
used to sss(p he coat of as asset (or peep
of assets) io secosntiag periods shall reflect
toe patters .1conneepiios of the aa:et
attiring Its Ireful life. la the absence of cleat
oviducts Indicates that the expected
aonsuosptioe of the asset will bee ;led icradly
grater or lesser m the early pentane of its
useful Tile than to the later pomace:, tb:
strotght•llnt method shall be pryrc -rd to be
the appropriate teethed. Dcpre:tr.tieo
Page 7 of 13
Federal Rteg iota. 1 4L. No. 132 / 'Mtaday, My 1
methods oats ward shall root be changed
!alas app. -oiled in adraoca by the eoaaivat
Peden! agency. Wino the depreciates
estthod 1► latroduard for appbcatioa to saute
previously subject to use allowance. die
taombiaatoe of we allowasem sad
'
depredates eppboabte to tuck asset/ must
sot sawed the total acquisitors oast of the
**seta. iasa the dews :Lagoa setbod la wed
liar buildings. a beard ii ng'a shell may be
stints d he each building ocespoasnt
(a.i, plumblog ey.tem. hubs& tad air
tea4itioniat system, etc, and each Item
depredas.dover its unsealed meths) We. et
die satin badldtag (La. tb. shell aad all
eemponeata) may be treated as e . asset
pr
mad deedated over a tinge* pasha a
= Whet the di r?datioa method a seed
tlor . pattkadar Was of a nuts. as
aiepreciatioa may be allowed ea say oath .
assets that =der paragraph a abeve. would
'the viewed as filly depredated. Kowe►ar.
seeuoaable use aliewiew may be negotiated
tor.vcb a.ueta tf warranted after taking tato
smoulders trot the amount of depredation
previous charged to the Government the
estimated useful We remaining at time of
*egotist toe. the effect of try tatasseed
snaiatenaata charges or deceased cadency
tin to age, and any other factors pertinent to
es utlizatioa of time asset to the purpose
soatempiatad.
$ Charges for au allowances es
d.predat e& must be supported by adequate
property records and physical invest:rise
must be !alas at least owe ovary two years
$a stataocal sampling basis is acceptable) to
ensure lbat assets east and ars arable and
seeded. Men the depredation method to
cowed. adequate de precis ti ors reeonis
iadicatieg the amount of depredation tau
earl period must also be suictatud.
ti4 Deseatione •
. Services noelwd
(tj Donated err volunteer services may be
furnished to so organize ton by pr ofet:stoaal
and techttlest pusorsnet consultants, and
ether drifted and no /killed labor. The value
of these services la not reimbursable ether u
s direct or indirect coat
jt) The value of dusted teMcas Witted
b the performsace of a direct cost activity
shall be considered is the dstermlaatios of
to orgaalsatlan's iodine cat rate(s) sad,
sccordisgiy, shall be allocated a
proportionate share of applicable bated
sewn when the follow/log dram, teams exist
material: aggregate value at the union is
lb) The services we eapparted by a •
significant ameaat of the endued waste
!bum d by the ergaeiaatioea •
MTh* dine cost activity le set permed
prtmartly for the beaest of the Federal
� eraasaL
feels othose etaatause whore then is so
�s
resiaine the fait market value of
Os semiesa nadand the recipient tad the
co=aizest agency that negotiate sa
appropriate atlocative of iodine cost to to
union.
iel When decorated asrvicee directly benefit
• troy supported by as sward. the °
*oats allocated is the sweines will bo
sensidsrad ae s pen of the total costs tithe
project Such ind.rect cotta may bus
ltre0 / Notices
arbabused =der the award w upped to Out
test sharing or snatching ngwtrsmsata, •
a) Tba calor of the donated services may
be seed to sett art abarias or w qty
soqutnmeata tinder eoaditione d.t bad L
Attachsest L Ota Corder No. A41
Wham donated unless are treated as
iodine meta, bared cos( ales will
separate the value of the dualisms as that
ssimburscmaat will not be made. •
ailM Fair market value at donated awakes"
b. ocomputed as follows:
(al Roos for usalunt.rrutrfasa bin far
tstuatesus sball bia+aatataat with thou
wegudar ratty paid for st.11ar work la other
activities of ttbbea anization. b Cases when
Ilse kinds of skills
',evolved are aot found la
the otbw ad !vino of the ergasleatipa the
alts seed .bat be consistent with those paid
for similar work in the labor tsarist la cr.
is organiutice competes let snail althea.
(b) Seniors donated by other
anonizations. When as employer demotes
doe services of ea etaptoyea, these asrvla s
shall be 'valued at the employee's regular rata
of pay (izduatve of fringe btss!ts sod
btitrsct costs) provided at union art t•
dm same skill far which the employee is
aorsalty paid. lithe services we aot Is the
same skill for which tits employee le )formally
paid, fah market with but abaft be computed la
b. • rd&ao with a bppsr apb (aj above.
' (t) Donated roods: La., eapesdabis
personal property/supplies. and donated ate
of epics any be furnished to ea argaaizat via
no value of the soods and space is sot
mimbursabie either u s direct or indirect
treat
ft) The rah* of the donations say be ;sod
b meet cost sharing or mstcbiig abate
negWreteenta wider the conditions described
Attachment iR OMB Circular Na A-U0.
its value of the donations shall be
determined is accordance with Attachment
L When doastios are treated as redirect
atoeta, indirect cost nest wC aepartts the
value of the donations so that reimbursement
will cot be sada.
11. Employee atomic Mah& wed worst%
greets and credits. Tim coots of Imo
panes bona health or aret,aid clinics, atsdj
se infirmaries. recreations/ activities.
eaployen' aouentiag services, sad other
szpeasts tacwv,d is accentual wttb the
organisation's established practice or custom
the the tmproverrest ofworbiag coaditioaa
demployeremptoyes relations. employee
worths, and employee performance ors
allowable. Surd coats will be equitably
apportioned to an aethitiss of Ws
torgentzatsott become seaarated from any of
these activtties will be credited to the twat
thereof =less smith raceme has bean
a bllyyssat war ire employee welfare
u. Entprtainewit sere. Costs ot
amusement Ovarian. social activities.
toaremoi lala. and costs relating thereto. owl
as meals, lodging. metals. transportation. and
gratuities are wnafowable (but no
pangrsple et asd 23).
as. Maipameril an+d met
os:pendituroo
s. As used to this paragraph tie following
brie have the meanings set forth below:
al'=gdt' means as wade of
sosamtpsodsble tangible pszsausl property
having • see? d life Onion tea two years
aid as ►quW ties .eft elide er men per
twit As orpaaiza toe, say as th mum
=taalaterrided that It at least tsrhudee all
�L pinata! J se d!ard bonds
• $13 .Antilatilai seer swans the act
ludas Bait priaa'of u Item of agsipasai, •
slimy iscluding tie cost
sat to wawa ies, or auger,
•
apparatus to aeoeesary to mats it stable fee the
purpose fee wit& it le acquired Aosdllary
Ames. >, is
lt`at ljbt aad I it& sa �pp
• ail be lecleded e dadedisan
earelaitioa poet i• :spier with the
t��=a
orgassisatiee's `1 Y'- writes •
p�po�
s pmcowt w�hicb le to•__i�r. r%� rremaaz .
medical, st:3aatitic w Meat 7 activities.
exempts, of specie psirpo+e squtpmsat
tiadude mtsroseopte, at•etey marlines, surgical
lutrumeata, sad epecttotoetars.
Nl "Central purpose qui t' mos
equipment which is cable four otav an than
meant. medical sdeatllsc, or to Natal
activities. whether or not glottal
modifications an weeded to make them
ptdtabla`tor a particular p�uarrppoose f ample sf
suerai pupas equipment tat ads oat
sguipmeat and furnishinim air co ditioaing
equipment reprodootios sad pintias
equipment motor volicles, tad antamatio
data procautng
b. (t) Capttat ppeadi�tso,ei for rand •
papas* egt:tpmeat are aaaDowsbte as a
find cost accept with the ;eke spprov'al ad
tjt} Capdttaf tuees for spedal
equipment an allowable as direct close
provided that items with a wet cwt ofgaOGq .
orr mon have ttheee price approval if the
s Capital upenditmsi Iceland se
building are aoallowabte as • tired mat
e ttept evlth the print approval of the
t CepTt xptndtturss for improvemeat.
bleed bona" or ogalpmeat which
astertadlyr tomease Get value or meld We
are =allowable as a direct poet except with
Go prior epprovel of the awarding saucy.
a',quip:ant and other capital
expesdtnrs an =allowable as !Mired • ;
Bata. However. see ?puanvsspl 11 for
sfowability dare anosanon se
depredatin on bondage. sepal • : ,
ipro►eaeia and equipment. Alan see
paragraph natal co sta
sts
far Lndbatdiop. and agspmest
ice. Primes andpr+ahlax Cosa of trees sad
Cletresulting 59aa i slatiaaa et or
fe the squint= Is comply with
YederaL State. and focal laws and regulations
airs aaallo.•able wept whes tecursd as a
sanit ofooapliance with eyedflc provisions
of an sward or tostrettions is writing from
the a
U. Rite 6rweju�iee pa erapb 1. L
fl lilt faculties szmd hills sot *do:
L Aa seed la that parasropb the lotowleg
therms ban tine meanings set forth below:
(t) "Fadlitiee° snsana lard end buffetuus or
any portion thereof. equipment iadi1iduslly
Page 8 of 13
46030 Federal P `slot / Vol. cis, No. 132 / Tuesday, la •
os ollectivety, et any other to le appal
asset wherever located and •tbet owned
to based by the organization. •
(t) 1dle eeilttin" mess ooaspletely
canoed facilities that ass mesas to ifrn
orgsnizattoo's rawest seeds.
3 °Idle capsd ° means the noosed
washy of partially used facilttfes h le the
difference batwan that which a hdlley
could achieve ender !00 per cent operating
SW on a oar -shift basis less operating
istarrvptiory reerahiasf from time bet for
repairs setups, yaw tirfactor7 materials. end
other aotmal delays, sad the extent to which
&se facility was actually used to meet
dent a ds duaiog the accounting period A
atsthlshift belts maybe used if It as be
shown that this amount of asap could
torasatlr be expected lay tits type of facility
devolved
(4) 'Costs of idle tadltties or Idle cspadty"
tseans costs such as mstateoanca, repair.
lousing, rent, and other related costs, e.g.
property tuns, tasursou, sad depreciation
$t tree allowances
1 The costa orate fedittfes are
twuUowabie auapt to the total dust
(1) They ors moopccaurf to meet
fluctuations to workload or
(t) Ahhouel sot aceeaary to meet
Nona In workload they ware
necessary Theo acquired and are now idle
beta Mt of changer in prrepum toQutttmsats.
efforts to achieve more ec+eomtoal
op* redons reorganization, terraiaaties. or
other causes which could not have been .
seasonably foremen Uoder tha exception
stated sa this rubperegtaph, costa of idle
Gcllittes are allowable fa a res.onable
period of time, ordinarily not to area. d one
yeaa, deperdiaj upco the lnitiative takes to
see, lease, Of tilt paw otsuea facilities (but
see paragraphs v.ia and d). ,
e. The colts of idle eapadty are Dermal
cow of doing business and are a feeim ba the
normal fluctuations of usage a indirect cost
rtes from period to period Such costs are
allowable, provided tae es padty is
hasonably anticipated to be BOWSAW"' or
was originally reasonable and le subject to
!eduction or 'limbs tion by subletting, ••
rentin& or sal& !a accordance with sound .
Drainers, ec000mta. a security ettcas.
Widespread idle cepacit7 throe as
attire facility or among a group Osamu
iavirtg substantially dos same function may
be We facilities
17. lndcpendent means& end development
(Reserved).
IS lnruronu and lndeosalfeaoti n
s laaarence fochdes theorems *hid: the
Oreaaizatloa is required to tarry, or which is
approved reader the terms of the sward and
any other trauma! which the organisation
teuintairu is connection with the gravel
conduct of its opt rstio as This perspapb
does not apply to insurance which represents
!rings benefits far employees (see paraprspb
tl.f. and ig.tZll.
(d) Costs of insurance required or
approved and maintained, pumas! to the
award ere allowable.
(2) Costs of other insurance maintained by
the organisation to connection with the
general conduct of its operations see
allowable subject to the following he:Potiau.
t'r type. sod nteat et Conrad+ shad M
to accordance with Denrod business practice
sad the setae and prendums shall be
eassonable ender the cercumstanoes.
fib) Costs allowed foe hotness interruption
goober viands; freurence abatl be limited le
exclude pocem i of manatiment foes
(e3 Costs of tast:raaca or of arrr provision
fix a ref es ee or erbrg the risk of lose or -
degas, to Government property acre -
allowable anty to the keret that fee
organization is liable far nth toes or damage.
(d) trvrisians for a reserve rack: a self -
fitvwana propos are allowable to the
lacteal that types of ((+err=s. utest of
so+rsrsgeaa rates, andpremit>ms would beret
been silenced bed ineorsrsa bona podia
fie Dore+ the risks However, provision for
laserwe or reasonably estimated aetf -tnran d
liabilities, whit* do sot become payable 1*
more than mot teat after the provision to
made shall sot exceed be present vale* d
the liability.
(e) Carta of mstaaaoo as tie Haar Of
trustees, officers ear other employees boldtq
positions of stellar rerpoostbi1ities art
allowable only to floe orient that the
iseuraaoa reprereah additional
compensative (ter paragrspb s). The ooet at
ouch tnrurence when the organisation is
identified u the beoefidary is unallowable.
(3) Actual Losses Aids ovoid have beet
covered by permissible ineuraoa (through
the pupae.. of Worm= re a sail- iaem?aaa
program) are unallowable unless expect!,
provided for b the sward tempt
(a) Costs bummed becsore of tosses sot
covered Cadet nominal deductible lures ncle
soversge provided is keeping with woad
busment practice an allocable.
(b) Mica totem sot covered by insuasaos •
ouch as spoilage, breakage, and
dlsappeeraaoe of enpptiies, which occur 1 the
Ordinary course of operations, an afoweb(&
1 IndemnilfatSoo loclvdes securing this
•1$z1801% against liabilities M third '
persons and any other lees or damage, mot
compensetell by inmanor or otherwtoa. The
Government is obligsted to tndernaify`ti.
organization only to the exurot expressly
provided to tie sward
11 Intere,C J4u+d retai* tad kinot0ont
asanostottnt cools
&Costs tnccursd for fttsreet mbonwered
capital at temporary tae of eadowsaet
trade. however represented art unallowable.
b. Corte of organised ftmd raising.
Secluding ftaa.ode! campaigns, endowment
drives. solldtatiot of gifts tad bequest, and
olmtiar expenses focused palely es raise
capital or obtain 000tairrtioos eat
emaDowsbk
c Coots of teveatment eoun.et sad staff
sad sia3llas expenses incurred solely 10
enhance home from Investments an
unallowable.
d. Fund raising and investment activities
*tan be allocated an spprvpriate abort of
Indirect rash under the conditions described
is parer-sob P of Attadamerst A.
ill. labor relations Cots. Costs dsevrnd is
maintaining satisfactory relations betwewa
dye organisation sniff its employees. lscleding
cots of labor management committees.
employee pubbcaticns. and other reseed
activities art allowable.
fit Losses an other oword• Any encase of
Hosts ors blooms em any award is
tenstIowabte as $ west of any other award t
Thie includes, bit le sot hearted to. the
segaaizatioree oustrthrted portt o by ham
at cost sharing agreements or any
oadsrrscorsies through aerobe tine eft tamp
sums tor, or railings es . Wired costa.
1Q MoLu forbear—hazy wid Rpolr (meta Cosh
bricaored to nos t
repair, ; o( dit�t an d equipment
prettied for) midge odd to
o t iolu ei
'appr+da* poloist to bounded life. bat
beep It m as &Eldeat open thg modideas. at
allowable. Cores beamed for tiapreermeets
which add 10 use p r anent ralue at toe
bendier and a etpment or eppseciably
prolong their intended life shall be treated as
capital expenditures (ors paragraph 13)
ti Moterfoh god applies Tbs torts of
materials and ember secsssare to oot
on award are Operable. Suck costs ssirould be
charted at then actual prices alter
all cash discounts, trade disooante,
sad allowances reaafvsd by the o oud:ration.
Withdrawals bore mend etoees or
Stockrooms shastd be charted at cost header
Lay nod method or Watts
aoa.ieteatiy applied booming transports**
charges maybe a proper part of material
lost Materials and moiler charred as a —
direct cost •bouid Oxhide only the 'sawfish
.
sad iipptie, actually cased for he
performance dtie wetted or great, and rise
credit should be ghee for any roam
materials or eippUa Maimed, of returned to
random
h. a. Costs es�sodiud wi he wended of
meetings, sod eonfervezes and fac}ode tare
cost otreaee� facilities steals, speakers'
tees, and the I ke. Zlut see perajrwpb 1t
jratert:tna'ent costs, sand parajripis
dlarticdpont rapport asses
1 Te tM extent that hew cleft me
(identifiable with a`particulat cost objeeltvt.
they should be charged to that objecttes (Su
pate reph'1 ofAttatmmsot A.) These assts
ere allowable prod tint they tenet the
t�eeaas i tests 0 a23o+rable. sheens in
Midmost A to this Cbsalar.
!iterate of erran t sad watermelon held
to (ooduct die genies! adeatnirtr%tios of the
W$aahatfoa are aDowabk.
l3. Memberohlps, ovlearrptiens, tttd
pvofetmiottal nativity #rues.
s Casts tithe organization's memberabtp
Y Bete. business, technical and profeseiosal
stganL:.atfons are allowable.
b Costs of the organization's eobsatppttiiohs
!o civic. bushes'. professional. and tseimiesl
periodicab are allowable.
s Costs of attssdata at meetings read
sonfertnors epoaaorvd by others whet the
petmary parp�ose is the diseensiaatioo of
cal sl informatiab are stowable. This
Wads, ants of meals, transportation. *td
Other hems biddeatat to such •ttendaroe
Orsatizolioa ayes. ispeeditures. web
se incorporation fete. broken' feat face to
promoters. organizers et management
cousuhaats, sttarseys, accountants. err
invetion nt counselors, whether or not
employees of the orpntzation, ht connection
Page 9 of .13
Tedoral Rerihtar / Vat 45, Willi,! / Tuesday, July IL, 1980 l Notices
46031
• 'rich w itabliah:ssnt or reorteelsados of as
srdaaiutioa ors unallowable warp with
prior approval of toe e agency.
]D.
4,4w. ;strob�qe a*i t Gni
a wtttma.
ma
--p�rj Premiums f
yy ahif sasitiAft work are .
allowable only with the prior approval of rho
awatdinj aseacy swilrt
a Wien secsauary to cope with
® esurendea, suck as thou resulting Iota
seeideatio, sutural diluters. bisakdowas of
euquppment, or occasional operatiasal
bot&Z.s. b of a parodic satire.
b. Whoa employees are performing indirect
tencUoa arcs as adrniaistratiae.
aaaintrasssee, cr acaosmtion
lit $e psrformaaoe of testa iaborst
proadwwrs. se other similar constant
are eaoti o ow la astute and taanot
seasonably he Iatzpted or odoirrwbe
completed
it Men lower overall coat to du
Coverment will result.
SIL Ass dames k professional/osrook.
Pip gorges for professional journal
publications an allowable as uassary
par! Onward costa. where:
a'fhse reaasrsb pen report work
�t�d by the Government and
001. Tb. r3aras are levied impartially on al
tteesarrb papers pubtisbsd by the jounnaL
whether or lot by Government - sponsored
Pbriiclpcnf support casts. Partidpent
support costs ass direct costs for Items such
ate stipends or subsistence snowman. travel
allowances. and regtstraUon fees raid to of
on behalf of participants or trainees (but sot
emptoyres) is nonlethal with meeti•rgs,
tooatereaaa, aymppaals. of trotgrog projects.
These oust, are allowable with the prior
approval of the awarding ageaey.
W. Meat Cash. •
a. Costa of (I) arty dlsdoeursa.
erporta. and other required by toe
award a.od of searching time art to the extend
sweeter, to make luck disclosures. fU)
preparing documents and any other patent
soots is conaectioe with the Mier and
prosecution of a Untied states retest
- apptation where title or royalty -fret license
- Is required by the Government to be
moneyed to the Goverment. and tlU3 meal
senneeling services relating to patent lad
appyrfgbt matters. such as advice on patent
sad copysiguot laws. regulations, claws. and
employee agruemaate are allowable (but set
RasaTaph 34)
b Gat of preparing disclosures. reparta.
end other documents and of searching the art
1s doe attest neesssary to make disclosures.
Rsot required by doe award all •
aesafowabtt. Cat, fa caasectioa with ft) .
!ilirr��g lad prosecuting any foreign palest
applicaUrsa or Ai) any United States patent
application wham the award dots at
lequbti emavey'bg titi. or a royatty.fr s
license to the Government are snaflowable
Salle see paragraph 433. •
ai.As.•yrian plans. See paragraph $.
32. Plant mustily costs. Neese/41y
eepsnees incurred M comply with
t overarault security aetotrementa or the
*militias protection. iechudine wages.
a ctorma. and equipment of personnel an
• 23. Awe wore eases. PIT award lasts ore
'bow incurred prior to the effective date of
the sward directly partuest to the
MgaUatdao and Le anticipation of the award
when evil costa Is seeessary to comply with
the prolbsld delivery schedule a p.rtod of
performance. Seel costa are allowable only
be Shot extent that they w os3d Lew teen
allowable tf lammed after the date of the
sward and Daly with the w ittes approval of
itswarthy ea ser ice meta
a Cate of profeutoaai and consultant
services mattered by oarsona vibe are
members of • pardruW peotesstan or possess
a 'pedal ahem, and who are sot atom or
eject to b, e, u& sf &It parap=pb wiaa
Raeonabie ha Maths to the aerdoes •
trodered and when sot sun wat
ova of the .wets from the
atoo Government
IL Is dstersatag the allowsbOlte of costa ha
a particular caw ao style factor es ay
asppttdai oombtaaion of lectors is emeuadly
determinative. elowevar, tee followlsj
lectors are relevant:
(t) The ashore and scope tithe service
tendered in relation to the service required
ft) The asesaafty of coatraetiog for the
service, mesideriaj the orgaahaatbn's
as abU ty In the particular area.
-particularly (3) Toe past pattaro of suck costs,
is he year prior do Government
a
(e) The impact of Goverment swards on
tdee organization's butane (i.a. what asw
problems hers arisen).
(s) Whether the proportion of Government
work to the organiutioe's total booklets le
each as to toflyeaa tbs oreaataatioa Ia favor
of incarrinj the cad. partiaJartywiser* the
aervtoea rendered us sot of a esetior&tsg
astute and have little reletionshbp to crock
laadsr Government grant, and coabilda.
•) Whether do uMat as be oemad
ttsors oeoeomtcaDy by direct
• esther that rsaaMetia&
(7) T.be qualifications of tie brteleheol or
macaw tenderer the sank. and the •
mastorsary tees charted sepedally sa atsoa-
Coveraa+est awards.
p) Adequacy of the o assault woman!
hr the service (e.g.. desatptics of the swam.
estimate Obese required, tats .1
compensates. sad termination pro,Ideatl.
s M addition to the tailors b paragrepb b
shore, tetatnar fees to the allowable most be
supported by artdena of bons Tide Denim
evallabla or eeadered.
d. Cost of kind atceuotlns. end ooneotthq
services. and related coats Inou sed to
eionnectioa with detente of antitrust mita.
and the pros s idoo of claims against the •
Government are unallowable. Cats eked
account's* awl consulting services, ltd
slated costa. Incurred to month* s with
patent bikini/snow bttjattoa organthatios
end reorsantuttos are ur.slo+vable value
otherwise provided for is the award (but sae
paragraph We).
llg. Profile and beset as tliaparkias of
tkpreciobie property or Ether capitol oeseta
a (1) Gains and losses as sale. retirement,
• to other disposition of depreciable property
shaft W Included in the year b which they
mew as matte or charges to cast grouping(*)
•
la Which the depredation app!Icable to earl
�evpett� was bdaded. The essowst of tie
jail or ]ae b be 1adr+ded as a credit or
shame to the appropriate met pronpiai(e)
Yaii be the Warm= behraes the amount
lis.ed sa doe reopen, sad dos
t.deprsdated bra u a Ski iha Js.eoprrty
ill Gatos andloss dirpatdoo of
depreciable prefer shall not be recognised
as a acptparn. te once dodge ,iadv the
(a) The talc es low Is processed ilea,;] a
tfapredation reserve amount and ie retested
dslthe dcpredetim allowable seder .
(b) The p opety ti drag la swamp ea
part of the purchase prier at s anatiar item
sod the gain or loss it tapes tato account is
disteratialy the deprsdatioa cost basis of the
new tom
14Ainert mutts from the Uwe to•
natatata permissible is/ VANN. mearot as
etharwiae provided In paragraph Ut.a.(31.
(d) Coapeasatioa for the axe of the
property was provided through eau'
allowancee la lira of depredanos 1a
accordusa with paragraph l
(o) Caine and lasso artily "OM mall or
extsaordiaary sales. retirementa or other
dispositions shalt be considered as a ru♦
horse bull
l Gains or leases at any satyrs &risks
from the sale or exchange of property other
d.aa he property covered in paragraph a.
above shall be stud dud to compwt og award
!Meta,
ll Public tatforaaodar service carts.
al Public information service Goats include
the oat associated with pamphlets. sews
ttskases. and other forms of information
services. Such meta are normally laanrred to
eft) Worse es Instruct individuals. poupa, set
general
ft) latenst Individuals et poops la
partidpatioe is a samba prvgras et the
iota auto&
1 Uiseestaate doe mutts
of spooned
lad ns ataYlt
le. Public Warms tia stroke
carts are
allowable u direct costs with be prier
approval of do awarding meaty. fad Deets
sue unallowable as Mitred costs.
less Porldi atiaa snipe/air/ cotta
e. Prbtiratioa costa bctuda the aorta of
tetopp�aat i the processes sf
1bdi:gl and doe end produce prod cad by
oath peocesees), thstrtbetiob promutan.
math math& and tcaeral baadiaj. .
IL 1f thew costs are cot tell cable with a
partkdv cost objective, they should be
allocated as bodired coots to all beating
eetteldes of the orsaadradoa.'
%obltcatttoa lad priatinj,aoeb a»
t nafowable u d net costs except with the
prior
et Tire met rime dames *rosy.. b
addressed paragraph n '
• Rsor rarvrastet acrd oherotkss acetic.
Obits hemmed for ordinary ar sorsal
learreagemerit and atteratiao of facilities are
allow.. able. %podal arraneemeat and
attention costa incurred specifically far the
pea}eet are allowable with the prior approval
et the awarding agersty.
ls.R.ecersrsien Coe s Gents bevrrod to
Se restoration or rehabilitsttos of the
Page 10 of 13
Federal Rem / Vol. 4S. No. 132 j Tuesday. July It 130 / Notices
ANZOININNINISMINS
trgesstdadon's c;:41$ Uee to spproad:mately toe
same etondrtios existing tmmedlatedy print to
SOW= "uamcrtE :!Ca era nent award& Wr
tear a$d tear &acspted an allowaiia.
ad R,cu.iiirg carte. The foUowina
vaulting costa are allowable. cost 01 144
„►anted° advertising. operating eoem of as
eeaploymtnt o!!Daa, costa of *Forcing as
educational tunas program travel upeaaw
dnciudlrg ford sad Iodating of employees
while mussed is recruiting personnel. Ural
setts of sppliraab for interviews for
=nee emp!oysotst sad mloaatios outs
tbcZUr,d Loddant to reartsliaaseat of mew
employee. (see paragraph e1c). When toe
organisation nose employment ag+codsa.
so,ta not !a ammo of standard coca
Pats+ for sock arrriaass are allowable.
41. Reloczadist amts.
a. Relocation costa ars costs Incident to too
ppetrmanent change of dory awtgamcot (far as
lad /finite period oe for a stated period daot
kaa than 12 months) of an,zietiry employee
se upon recruitment of a new employes
Relocation costs an allowable, subject le the
limitation deembed in paragraphs b, a sod d.
below. provided that
(ij The )sort b for tbs bene5t of the
ssaptoy,T.
(2) Reimbursement to the employee is in
*cordance with ea established written
policy consistently followed by the employer.
(3) The roimburs,emrat dote not exceed the
employee's ecru! (or reasonably unmated )
expenses.
b Allowable relocation costa for aortal
sployeea art limited to the following
(1) The costs of tanoportation of the
S loyea, members of his immediate faintly
_sd bra botisebot4 sad personal effects to the
dew location.
(2) The costa of ending a new home, rod
Si advance trips by employees and moues
to locate living quarters and temporary
lodging during the )reunion period cep to a
maximum period of 30 days, be}
advance trip time..
(3) Mein; costa, eruct as brokers:a, legat
and appraisal feta, incident to the dirpositton
of the employee'. former home. These cotta,
together with those described in 4) below,
are )incited to 1 per cent of the sales price of
the employee's former bms.
(e) The watinutrnt costs of ownership of
the vaunt formes home after the settlement
or lease date ortbe employes's new
ppeeruiaasot tome, such as maintenance of
buildings and grounds (.:dualve of fixing up
expenses), "Witter, taus and property
iaswana.
(f) Other necessary and reasonable
expenses normally incident to relocation.
ouch se the costa or cart.eVLng as unexpired
keit, di,connectirng and relaatanlne
household appliances, and purcbu1ng
Insurance ag►but loss of or damages to
persona! property. The cost of aacafitni an
unexpired teem is limited to three times tie
anonthiy rental
c. Allowable relocation costa for sew
a+ptoyees are limited to those described la
) and (2) of paragraph b. above. When
riots tioa costs Incurred incident to the
evcrultmeat of new employees Isere been
snowed either as a direct or indirect coat and
the emptoyee resigns for reaaoas within his
aorat ed within IS months after isle,, the
roeaisatioa alkali i,fuod or credit the
Covernment for !ter shags of the cost
However, fist oasts of travel to as overseas
loci doe ahaU be coaaldered travel costs in
accordance with paragraph 10 sad not
talus don costa for the purpose at this
parsgrapb if dependents are not permitted at
the location for sot mason and the costs do
trot indaade coats o f transporting household
)Nile following outs related to 'dozed=
ass wmafowab!e:
(1) Furs and otbir costs associated with
aaquirine a new hoc..
(2) A dose so the sale ors former home.
ql Centinukat mortgage principal sad
!interest payments on a looms being. sold •
(4) Income taxes paid by as employee
misted to reimbursed rsloutfon costs. •
42. Rrtrrotcoots.
a. Subject to the tattons described la
paragrapbi b. *mob d of this parapaph.
rental costs are al3ovrable to the extent that
the rtes aro reasonable to tight of eseh
lectors err rootat cos% or comparable
peeperty. If any; market eoadltions to too
area; eltematiree available, and the type. Rfe
expectancy. condition, and value of the
property leased
b. Rental meta under salt sad leaseback
arnarjemeata are allowable only up to time
amosot that would be allowed had the
organisation continued to owls the pep
Rental cost %soder*0.,- tban•leag'tb
leases are allowable only rp to the naturest
that would lot allowed had Otis to the
property vested in the organisation. For this
purpose, a lees.tban-arm length leas. isms
ender which ooe party to the kart Bremen!
le able to control sr sub.taatia3)y lntlaence
the action of the ether. Such leases baud&
but are not limited to thous between (t)
divisions alas organisetioa. (11) erganixatioss
ender common metro( through common
*Mum directors. or member% and (W) to
woe nies foe and • director, trustees, elbow.
ere key employee of Ott organisation or kis
immediate fatuity either directly et Woggle
corporations, tru etas, to similar arrangeme0L
k which they hold* eac+ntrot1ing tntenst
4. Rental costs soder leases which aarsate a
material .gutty to the 'fated property we
allowable only up to the amount that woesid
be allowed bad the organisation pwrcbawd
the property oe the date the cease ay,asast
wu executed e.g.. deproctatiosot are
aUowasces, mabateaaaca, taus. losirrsoce
but excluding Iattrost expense sod Wear
unallowable costa. For this purpose. a
material equityta as property exists if the
lease to aoacancolable or is ea.omiable only
upon floe occurrence or same iota
conttestars and ►u cos as more of the
Soto wing chars ctsriatice
(1) Tbs oreaaisation has the dolt to
pwcbase the propertykr a price which at the
be issniag of floe lease appssn to loo
outstantially lee, than floc prebabia fair -
mark et vslue at the tins. n is permitted to
Furthest the property (corrmsonly caned a
tee with a bargain pm:chest ("nub
(2) Titii to the properly passe to the
organisation at eons time during or attar the
keel period;
(3) The terse of the lease (Initial tats plus
periods covered by bargain ;spews] options.
easy) is aqua) ton per out or more of the
ommomJc We et the leased pre Ls (be
period the properly is d be
• mica usable by oea or sore men.
a i l . J t o y o % ' q one other Ears f r on sf
potsrrb rodeopyrbh1
a. Royalties oa a patent to eopQrtigbt or
asorttuttem ar the asst ed a
ertbsw aooPyr1ibt patent r�
thereto, seossaatrt for the peeper performance
or the sward ors , owable ))ahem:
(i) The Ge+srameat has a kraut or the
light to free see eras patent or copyright
The ). ad d ad t patent bus ben
aadmiaisltrativabr deta:odned to he =relict
(i) The patut et awl* is considered
be aneaforsoab)s.
The patent or copyrlgbt i expbo .
k Special wee Amid be exercised to
determtahsg reaaaoabteaas )mbar* the
loyalties may lees been wind at as meant
at less too arm's 4agtb bargatatrtm s.g:
(1) iRoyalties ppatid to perm& ltscclludlng
esaeparsttnrs, a!'Ebsteer with the orgassis,tivn.
$2) Royalties paid to saallltieted parties.
bdudtrg corpontfona trade an agreement
e nterediato la =temptation that a
Coveromettaward woaid as taaade.
(3) Royaftte, paid tender as agreement
entered late after as award is suds to an
agonised=
y case Inro?vtng a patent a
t former! .)'reed floe
•
•
erg: elution. be amount of royalty a3kwed
should oat exceed the cart which would km
been allowed Ind the sepni:atioa retained
tittle thereto.
44. Strearcatot a Severance pay, ooasssos1y referred
Ile as dismissal wages. le a payment m •
addition to regular Wen end wages- by
seep nLutions to workers :rant employment
is being tvse&Ioated Costs of severance ply
an allowable cal to the extent that in each
sus. *tie regt�by (T) law. O employer•
employee agreement (tit) ester bated pobq
t►at coca Lutes, 0 affect as mplied
agreement oo the ogaaisatlan'cpart or (.-)
alnoomstuces of the particular s=ploymeot
b. Costs of antranm permeate an divided
kto two ctegorleee u iofcws
(1) Actual aerosol trsnover several=
ferments slid be allocated to all setivttlex
at, whose the organisation provides for a
morn for sorraa2 etrertaesa such method
mitt be adaptable tithe char=s to current -
aperstlons Is reasonable le belt of payments
actsrally,on& for some severances ever a
Peproaantative past period and if emomste
e►arjed are allocated to all subsides of fist
• lion.
Abnormal or mass st*erana pay 1s of
real s conjectural nature that measurement
of costs ley muss at as accrual will sot
odsleve nutty is both perdu. Tbua. *cowls
1.. thispurpose an sot &towable. Howtves.
the Government resoprskes ads obilljaatioa to
participate to ke extent of Its fair share. In
any epeeihc payment Thus. aUowebLUty win
tee considered cm a arse.- by.eaas heels la the
event of aeureeoce.
411. Speciafired s.rrstoe fecIities.
a. The costs of services provided by highly
ample: erspedatiud facilities elated by
Om organization. sorb u electronic
Page 11 of 13
radars] if star I VoL 45, No. lit I Tuesday, jai , 1t1e0 I Nonuse,
aomputers sad wild turista. ale a1lewabh
provided fibs charges for the ferries, meat
condidens of either b. ae a of Ws
paragraph aad to sdebriaa take alts comsat
bras l inoasaa sr Federal Boucles that
u applicable otoiitte adar
Attacha►sat A
d The auk dead urea's, wise
atelerial, mutt be charged directly to
applicable awards breed an sexual cargo of
•e i.M ae ass the basis ea schedule of
setae to established methodology that ft) dose
OM discriminate watt federally eupported
artfriefes of the organisation tacludiag asap
by the orgaatsutioo for internal purposes, and
so is designed to recover ally the aprrpes
scats of the aerrtoes.The hosts cluck
settler shall comfit sormally of both its
*rem coats and to allocable abans eat all
tadLtecf costa. Adverse, agreements pursuant
tie paragraph At of Attachment A ass
particularly important in this situation
a Where the coats amend for a ser+rice
are not material. they sea: be allocated as
Wine costa
al Taws. •
a. d general tun which the organised=
Is required to pay sad which are paid or
accrued is accordance with ally
sculpted accounting prim a,sad
g+syment* made to local gover*meats to lien
Ouse. which are ooanaseasaraie with do
kcal government service, received are
a>9owsble. except for (1) taxes from which
ameaaptions are Gullible to the aresnisatton
ir.edy or which are available 10 the
argenfsatioa based an an exemption afforded
See Government and in the atter case when
i awarding ageecy makes sraDabls the
accessary exemption certificates. (et) special
assessments op land which represent capital
orrmeats. and (iii) Federal income taxes.
tefu d of taxes, and any payment to
that organization of interest thereon which
more allowed as award costa, will be
a recited either is a cost reduction ar ash
arfausd as appropriate, to the Government
®. Termination mete Terssinst as of
awards generally give rise to the facvrraaat
at assts. or the seed for specie/ treatment of
recta, which would not hare criers had the
' award mot been ternttnated. Cost s
souring these items are cat fortis
They ars to b used In conjunction with lira
saner provisions of this Circular in °
ttarmlaation ritualises.'
i Common Ji.me.. Ths moat of !isms
taatonably usable se the organiutioa's other
stork shall not be allowable uakss the
ae=asisatton submits eridaace that *meld
see estate such items at met without
meta hag a tore. In derldtnj whether auk
rums art reasonably "sable on other work of
tabs organisation the awarding asericy should
sc rider the organization's plans and orders
he current and scheduled activity.
t(9eniemporst sous purchases of common
deems by the organisation shad be regarded
se evidence that such items are reascesabty
triable on the organisation's other work. Any
acceptance of common items as *doubie to
she terminated portion of the award shad be
Inked to the extent that the quantities ad
aw & heaps on hand. in transit and on seder
ate fa excess of the reasonable ;uantltatira •
aegvitements of ether work:.
- 46t133
h. Dab eeeteredv after airrmbatloa fits
*particular we. despite all reassemble
starts b7 the organisation certain assts
Mast be discmatineed tmmedlata1y saw the
affective date of teraIas on each cub are
=y allowable within the ltsttattoas set
this tirsalar, aatept that any aced
molts contiming afar tarmtedtlaa des to the •
aejligentin walls, seder, of the oe=adsaasao
w discontinue reel aorta slam be .
■aallowsbla.
• c lens of reed rtt taw of ooetd seise
of 'pedal tooling. macktarry and sgatpmest
which agar oat charged to the award as a
aspltal expenditure 1 jeaeraIly aliawab s
A) loch special toolme wachlaery. et
equtpmeat b sot ssuonsbly capable dsro k
tie other work at the arjaattcation
proottected by transfer of title or •
seems deemed appropriate by d t a.rartlq
yi Rental sm'tr. peruses accts ®der
unexpired leases an getaway allowable
where dearly shows to !ere bees
treasonably s cetsary for tbe.periortasato of
die terminated award kw the residual ratoe
of such leases, If (I) the amount direct rectal
claimed does cot tieaod the nruanable sae
talus of the property leased for the Aeriod of
the sward and ruts firth!? period as say be
reasonable, and (ti) the organisation makes
all ssaortabh efforts to hrminats, inmtges.
settle, or otherwise reduce the cost otos&
lease. There else ansy be ladud.d tbe cost of
alterations of tech leaned property. prvrtdrd
mach alterations ware necessary for the
pa:foreign= of tha Sward and of reasonable
Ritoratioa ragoirod by the psarisIooa of the
kites.
Settleruot =pewee Settlement
expenses 1sctoding to fotioertag are
generally allowable:
h) Accatatt* iiL elericaL sad droller
assts teasoaably aeaaary fee:
(a) The prepare dos and pus r
awarding agency of setthemeat claims and •
"supporting data with respect to the
terminated portico Oda award lmleor the
lermtaation k for default Mee paragraph t,a
of Attach: seat t. Oi`O Chula Nit A-1*
4b3 Te t. termini !Woad eanamaI at
ao
7teasoaable oasts for de rawest
transportations. protection sad disposition d
property prowtdsd by the Govermsd or
acquired or produced for the awards wept
whoa 'mires ass r habcrosed for disposals
st apredators:hod amount in acccrdaaoe
with Attachseat N of COO Circular 1.-114.
CC Indirect costs related to salaries and
wages incurred as ueKlament expanses in
oubparspapbs (1) and (j) of cite parampl.
Normally. osach Mired costs 44 be halted
no binge benefits, seccupaoq oast, and
tewseddn,'ate sepeMafoa
1 ClcIaav wader embower& Cake War
robs ward.. tndvding the allocable parttoa of
deltas which are amok to the award. sad
M other work et the orpidutios ors
generally allowable. Aa'appropriate share et
the organisation's indirect expense may be
allocated to the ameuat of settlements with •
evbcontractor /subareateea provided that the
amount allocated is otherwise constoteat
taftb ibe bask idelahoes aestslaad Is
Attschmeat A bdirect expose to •
lama ted Shaul await the use sod eadlar
arias chimd dtrec* or ttadiset y as
0. Diets d and *7 aesad mite
amttad ire ati. classroom b .a.
Oa a taT�aetl d wipe ed to acreage
ladeding 'acs masse of amployeen tbook
salaries or type at tr �a
h
*wartime oempaaaatko which sight atlas
thheraboml sat QI ssLrW stub• dinar of
k erroduried by the sad etas whntthe bs*taj procam ikau et
kitiao sad teat 'Am the *Wales le la aa
are anowrabla+doa,
k Carta of pal -tdsa edemas. at sal
tendsrpa dssa to or due to allege level
/acv that pv Floc at the erjanitatioa•a
awe to Ms. are afoirsbie only when the
know w depwe pursued is ;sleds, le tla
field In 'did the employee le sow wwkiog
at
are bmitad 1a ai+dad w• and
Try 1ottsls.
Fees clagaa by Or adacssieasd
iastiostiaa
N) Tutu.. *argot by the adt+ntioaal
harsh lion at is Ilea at taattka, Instructors'
made. sad the related share at indirect
eats attha educational institution a the
extent that the etas thereat is not is maw d
thbs'taaitaoa rid& would here boo paid 10 the
Mrtidpating educettoal bastittatos.
pi Salute, tad;eisted costa east: can
eabe ar employee ti do organization
*3 darsighwilme si atpea+stica of cad
'sap aye tar alms sprat attending duals avekiag boors sot 4 sapasa at lit
hoar pa year sad only to this meat that
dreeaaataaoes do sot permit do ratio of
daasee of attasdaaar at classes afro, reeler
working e !don'Ss' ow* tompeasattan
s Costs at tuition tira a sums= salertala.
iaatd (bat so embetstsaos, tary.'tr �
ills -lime educatoa isd with
the wpaofsatIa a'a awe fsdbtias. at provided a4
ee dwta (but ant aadarpadaaate) allege "
'r►aL an aDoteable et* swims the coarse of
degree pm,tued is related 1* do told r which
1be aaptores k aow wsrkta j or may
s+aasonabty be ncpseled tr wort and only
wren the assts sort» the prise approval ad
if es swardinj snacy. Seel sane are halted
tr do ports atwibuutabtra a total peresd ant
l stead oar ackeel year for esth employes
nd. mumsal mess lee period may
M a�ad
t' Coots at atteadesne of ap to 11 wash.
ger employee Mr especialised
pe ms pDy dsti to •
firs affectiv eumnives a esaaguse
Sr *prepare employee tot each pcsltlaos
are allawebla Sack mete Wade aaroltasat
Stec, taming:estatrtel. textbooks sad
melated charges. eispayeee aalaiea,
w,b.btonea, and travel Cate allowsbk
tander this paragraph do not include thous for
MOWS & that ars part eta degreee.ria lei
Page 12 of 13
sarrtmiure. wbtd are allowable eaty in the Secedes es the baste of work of time period Universities Research Aaeodetioa
neilted when appropriate. Advance ted National Acceleration Lab},
tat. S set forth V b. sad a above. . o atnt� ae, tC3r►ots
S&L, �ruas a psn►a, and normal a ea�enps a» particularly brrportaat
depreciation et fats rental err facilities o, »ssol charges for ton * travel cats ass Unirereities Caporetion ter Atmospheric
owned or leased by the °tont:Ad a be allowable Dally when the travel has received fit laseranee. do such u idles
*slang purposes are allowable to the want rice appwral of the swardtag m e m. Croce Zara ossC es tech e
rt forth to paragraphs S. =i. sad 4i Mperate tore* trip must be appn+�ed ihr tit Organisations
is t1ons
L Coatrtbudona sr doaadoas is i'of this provision, forslga.travel Is its *warthog s pr° -
&mationsT or tral vets institutions, including • a nay
A donation of beagles Dot p��
and edgers*.
1. Veining and education web is axone of
Sion• other/dm afowab b may Dui �e�
i� and s of this ptra re y
with price appro± far of the awarding agency.
T. be op: vitiated
organisation must demonstrate that nub d
its us censistsntly toc srrsd purenant to
established training end educative program.
and that the mass or dense• pursued is
relative to he Se d to which the employee le
arcs working or may reasonably be expected
haW T wuporMCUaa mgt. Traasportaden
eau fodod• freight, express, cartage, sect
postage chutes relating either to gooda
fur ltesed to process., or detivs These
Mats are allowable. When such colts can
tsadi1y be Identtlled with the items brotved.
they may be directly charged as
ilex sportatiou costs or added t� post ot
such Items (see parastap 1
Sdeotifcutioc with the materials received
cassnot readily be made, transportation costs
may be charged to the appropriate iadlnet
cost accoroats tf ik• organisation toliows a
consistent equitable procedars in this
aspect
Rio. Terre costs.
Travel costs are the asperses flew
amid ., trarsioutside of Canada and
Ibe United States sod its terrtt es •
ppsaussioaa. Howa+ha, for as orgaai:stiem
jscated in torstp countries, the term "tereign
level° ware travel outside that country .
(Circular ti . A S
Atsatthotat C
Stenpeodi Or;sal:sloer sod Subject `this
Aerospace Coeparetioa le Salgado.
California
Argonne Universities Aasodadoa. Chiral*,
pssociatied Untvereltlee, bcorporatsd.
Washington. DZ.
Associated Universities for Research and
Astronomy, Tucson. Arizona �Vartstogtca,
Atomic Casualty Commis �•
D.0 .
Battelle Memorial 1rudtuta. Headquartered
Columbus. Ohio
*mkt National Laboratory. Upton.
• Slew York
Crates for merry and Environmental purser
Research PEER), (University
uao)
Commoawealtb of Nano Riau, Charles Start
Draper Laboreterry, incorporated
Cambridge, Massachusetts., Comparative
Animal Research Labaretos'y (CARL)
a ear
(University of Tennessee). Oalddia.
eruspor ation lodging subsistence, and Trauma telsted items Incurred by employees who us briroameatsl bust#tut, of Idsc.hip& Ace
fa travel status ce off dal business dare Ashen, tWrh�ap
serrgjentsatfoa Tlavet coats are at1owebb Hanford trarironmeata7 Health Tomdsliet0.
•abject to parapapbs b. through e. blow. Rir3laad. Washington
when are directly attributable to spie� xesearzb Institute, Chicago. they Qiiacb
work clads se award er are incurred b the Institute for Dafecaa Analysis. Arlington.
10rormal rouses of admiaistredoa of the
sejartha non.
Virginia
Suck costs may be c urged es " sow lnef ruts of Gas Technology. Chicago. =Ws
teals, on a per diem or mileage baste is lies Sifldwe•t Reward Institute. Headquestaid
.of naval costs tncumd or on a combtasdos gn tKaasa• Cyty,
at the two. provided the method peed results D. In CoCorporstioa. Srdford. Irtataathaattta
In es coaatateat with those normally SIC.. tA•r:y Research s
allowed by the orjaaisatioa in Ito molar jnedtvta, tbc.. t fl.
operadona. - National Radiological Astronomy
s The dater:oat b cost bstweea Eret•aae Observatory Cerra Bark. West
sir sus: mods bons sad lees than Melissa OaiaidSS Aaaodatad Ua}vsssttses.
nit aeeom.modations b unallowable eesept Tennessee
srbes lea then tirstdass air !s'our Manatteaast Corporation. Oat'tSdgs.
sccomsnodatioas are not rsabanably Teneeew,
available to meet necessary widest= Rand Corporadoe . Banta Monica. California
requirement& such as where leas than Bret- Research Triangle Institute, Research
lass acoomcmodedons would CI) require Triangle Park. North Carolina
circuitous routing. DO require travel during Riverside Research Institute. New York. tiro
saareaseuable hours. (tit) greatly tncream the York
duration of the flight (tv) result b additional Sandia Corporates. Albequatgsa. New
costs which would offset the transportation Mud=
savings, er otter �� ofdaatSe medical Southent R arc) Znstituta. �s.
are y
seeds of the travels:. Southwest Research Institute. Sea Antonio. d. Necessary and reasonable costs at Testis
gamily movements and personnel mvvemeeta SRI Intersadoral Menlo Park Candor&
cf s special or sass nature are allowable. Syracuse Rsssareb Corporation. Syrsena&
pursuant to perastapbs 00 end 41, subject In Pm Yaat
i Dec ss.s = Nod adds au as)
tja:+.rb 10X11 atta••sdt
Page 13 of 13
FRIDAY, JULY 30, 1976
PART 1I:
OFFICE OF
MANAGEMENT
AND BUDGET
•
GRANTS AND
AGREEMENTS WITH
INSTITUTIONS OF HIGHER
EDUCATION, HOSPITALS,
AND OTHER NONPROFIT
ORGANIZATIONS
Uniform Administrative Requirements
1e
OFFICE OF MANAGZMENT AND
.. ' war'r✓c3E'.g t .-.
(Ctretriv Ho. A -110)
GRANTS AND AGREEMENTS WITH INSTI-
TUTIONS OF NIGHER EDUCATION,
HOSPITALS, AND OTHER NONPROFIT
ORGANIZATIONS
Uniform Admtnistrathrs Requirements
Pine 1. 1975.
To the heads of executive dep&rianents
and establishments.
QubSect: Uniform administrative re-
quirements for grants and other agree -
smeate with tnsUtutions of higher edu-
e .tton, hospitals, and other nonprofit
organizations
1. purpose. —This Circular • promul-
eaus standards for obtaining eonaisten-
cy and uniformity among Federal agen-
cies to the administration of grants to,
and otber agreements with, public and
private Institutions of higher education.
public and private hospitals, and other
quasi - public and private nonprofit or-
ganisations. This Circular does not apply
to grants, contracts, or other agreements
*between the Federal Ooverrunent and
knits of State or beat governments
covered by Federal Management Cir-
Mular 74-7.
S. Effective date. —The standards to
the attachments to this Circular will be
applied u soon as practicable but not
later than January 1, 1977.
1. Suptrsessiom —This Circular me-
etnda and replaces parts III and IV of
the Appendix to Federal Management
Circular 73 -7, Adatinhtration of college
and university research grants.
4. Policy dnfent: The uniform stand -
ards and requirements included in • the
attachments to this Circular replace the
varying and often conflicting require -
menta that have been imposed by Fed-
eral agencies as conditions of grants and
other agreements with recipients.
S. Appficabitity end scope.--Except as
provided below, the standards promul-
gated by this Circular are aplicable eo
all Federal agencies If anyDstatuf ex-
pressly prescribes policies or specific re-
iguiremeata that differ from the stand-
ards provided herein, the provisions of
the statute shall govern.
The provisions of the attachments of
this Circular shall be applied to subre-
etptents performing substantive work
under grants that are passed through or
awarded by the primary recipient if such
subreclptents are organizations de-
scribed in paragraph 1.
dl. Definitions.
a. The term "grant" means money or
property provided in lieu of money paid
or furnished by the Federal Government
to recipients under programs that pro -
vtde financial assistance or that provide
support or stimulation to accomplish a
public purpose. The term "other agree -
atenta" does not include contracts which
are required to be entered into and ad-
ministered under procurement flaws and
refutations. Grants and other agree-
ments exclude fa) technical assistance
programs, which provide services instead
of money, (b) assistance in the form of
ISOT)CES
general revenue sharing, Deana, loan ate. Sereo,isibuittes.— Agencies reeton-
guarantees, or insurance: and :;,) Jirect *le for adatirtbtering programs that in-
payments of any kind to individuals. 'Jobe grants and other agreements with
b. The term "recipient" includes the vsdpknta shall tissue the appropriate
following types of nonprofit ermine- lagulat.iont emissary to implement the
bons that are receiving Federal funds provident of this Circular. All portions
from a Federal agency or through a at such regulations that invitee record -
State or local government: beeptnt and /or reporunt requirements
Public and private institutions et high- siab$set to the prievisiona of the Federal
sr education: public and private nos- Saporta Act and Old Circular A-40
Vitals: and other quasi -Public and pit ltutt be submitted to OM:11 for eleeratsce
vote nonprofit organisations such as fait before being introdueed into Ire. Upon
not Iterated to) community action mein- ttequeet all regulations and instructions
vies, research institutes, educational as- implementing this Circular shall be
sociations, and health canters. furnished to the Olace of Management
The term doe not *Delude foreign e1r and Budget. Aisne-kg shad also desig-
tnternational organisations ..(truth as late an official to serve as the agency
agencies of the Vatted nations) and l tpresestattve on matters relaUnt to the
Government- owned contractor operated fmplesrtentaUon of fhb Circular. The
facilities or research :centers providing llama and Utle of such representative
continued support for motion- oii,elted, than be furnished to the Circe of Man -
large scale programs that are Govern *gement and Budget not later than Au-
ment - owned or oonunfed, or are de- gust 20, 1174.
shied as federally- funded research and 11. tagefries.— Further Information
development centers. concerning thb Circular may be obtained
7. lequests for exceptions.—The Office by eouteseUng the Pinanetal Manate-
of Management and Budget may grant went Wench, Budget Review Division.
exceptions from the requirements of this Oince el Management and Budget,
Circular when eseeptloas are not pro- R'ashingbn, D.C. 20503, telephone 195 -
hibited under existing laws. UN.
However, to the interest of numbs= James T. L.
ignlformity, exceptions from the re- Director.
ouirementa of the Circular will be per- Amer i it A. --. atessa 110. a-ituD
shitted only in isnusual cases: Agencies
may apply more restrictive requirements case scrosrvosms
to a Naas of recipients when approved by 1. This attachment sots teeth standards
the Office of Management and Budget. governing the the of banks and other ta-
g. Aftethtrtefts. -The standards pro-
atttutioas AS depositories of fund *ennead
imitated by this Circular are set forth tinder rants and other agraemsata .
in the Attachment'. which are 9. swept toe situations desalbed to wa-
graphs s, 4, ass a, no Federal aponscriag
Attachment A Cash depodtories agency shall:
Attachment >s Sending and insurance. a. a.quim physical segregation et cash de-
Attachment C atekaUOn and custodial re- p1tories for funds arnica are provided to a
qutrements for "woods. sedpient.
Attachment D Program interne e. Dtabtish any aUgibtttty requluemeats
Attachment It Oast snaring and snatchtag toe a tb depositories for funds which are pro-
Attachment P Standards for Dnanetal man- laded to incipient
agement systems. 1. A separate bsak account shall be remotreLl
Attachment 0 Financed reporting , u1re- when appiicable letter- of-credit agreements
menu provide that drawdowns will be made when
Attachment E ![onttortag and s•portiag the recipient's checks an presented to tbs
program performance. bank for payment.
Attachment 1 Payment requirenseeta. t. Any moneys advanced to s teeiplent
Attachment A Revision of financial plans. which an subject to the control or mots-
Attachment 1¢ Clcreout procedures. lion of the united guts at say of to 0$orrs.
Attachment L auspenstos and termination egeau et otooloyees' (public moneys sr M-
pracedurea. lined as Treasury Circular _ No. 27e, se
Attachment ti Standard for toe apptytag amended must be deposited to a beak with
din federal eaelau&Dee• Federal ; Deposit Insurance Corporstlon
Attachment It Property m►nagemeat stand- (FDIC) tarursaa coverage and the balance
Ards esvediag the / IC coverage 'must be eel -
Attecbmeat 0 Procurement standards. talersily swung.
t. Stcep fioet for certain recipients— S. Consistent with the satlond goal of
Notwithstanding the provisions of pare- aspaodiag Use opportunities for minority
tlnataees enterprises, recipients and sub -
graph 7 If an applicant/recipient has a sadptents shall be encouraged to use minor -
)ttstory of poor performance, ts' not 2- t(y banks (a bent which 1, owned at least so
rtanciatiy stable, or W management' eye- percent by Minority group members).
tem does not meet the standards pee-
Arsacsnsste0 a.- Coevtas fro. A -110
scribed in the Circular, Federal agencies ICl/M42114 ash atstraarres
may impose additional requirements as
needed provided that such applcant/ t. Tits attachment eete torch Waning and
recipient k notified In writing as to: tasurance requirements for grants and other
a. Why the additional standards are sgreeroente with reeepieote Itb ether heed -
being imposed' tog and insuranes requiremenes shalt be 121:1-
b. what corrective action is needed. Berea normally required by
its. s.et R
other
tats tics 7 requ
Copies of such notifications sbaU be tt tempt as etbervise required by taw. a
sent to the Ofsee of Management and pant or et10r agr:etwat that requires the
Budget and other agencies funding that somtraeting ` (or subcontreettag) for con-
recipient at the same time the recipient atruetioa of fsctttty improvements *ban pro -
k noted. ride for the recipient to follow its own n-
IIDIIAI atOtifts, VOL 41, 110. 141-4111DAY. A1aY ace. 1976
PAGE 2 of 1Q
meat. relating to bid gnaraatw, per -
m bonds, sad payment bonds =sees
the eoostruetiee contract or subcontract ex-
Mode 11100.000. for these aoetrsen err stub.
entracte *speeding 11100.000. tins !.dart!
Mornay noa7 scoop, the beading papa/ sad
sequtreseent et the grantee procured the
glodersl meaty lum made' a get.rmination
Ihat the Ooveramestl !sitarist a adequately
ft*otaeL t 11 such o determination km /bet
been made, the minlstts requirements obeli
bees follows:
L i bit peaceable from sock bidder egotea-
Ober M > parson of the bid price,
!be "bid guarantee" shall most* of a Arm
srfmmttmant such es •'bid bead. arrt1tied
*beck, w other se$ot)►b1e toetrument •e-
sempan7ing • bid as assurance that the bid-
der wut, Capon acceptance of his bid, execute
sorb contractual Oaeumeptt its may be ft-
tutted within the time spaolled
b, i performance bound we the port of the
contractor jot 400 percent of the eontrect
trier —A "perfonisena bead" Is one executed
3s connection with a sontrect to Yew, tut -
liltaeat ft all the aoctrastorls obligation.
twin ouch etentroct. -•.
a i payment bows es the port of the ses-
traetor j4r 100 peroret of he sowtrect
greet. --A "payment bond" b oat sweated to
teaaeCtIOn with • eontroct to ,suet pay -
loot Y /required by law of all pineal sup-
plying labor and material to the *cocottes of
loss snot prortd.d fee !a the sontsxt.
!. Viborg the federal Oo +era: ent inures-
Mee or thrum the ttepa7meat st nosey
borrowed by he recipient, the P!+erd�erel
stoney. 0t Its discretion, may r.qutrsdede-
quota bonding and tn.tlrence If the bonding
teed lrieursace r.qut»menta of the recipient
are not deemed sdequate to protect the ft-
tenet of he federal Government.
4. The Petsl eponsortne stoney nosy re-
quire adequate ldeuty bond coverage ethers
e reciplsat bee ao coverage and Ile bond Is
baedsd to pretest the Ooverameatl interest.
!. Were bonds ars required as the situa-
tions described above, Us* bonds .ball be ob-
tained from aotnpaat• botdtnt estlifiestee of
oatbotity se oaaptsble stoettaa (11 CFR
NM).
At'tae>ttawt C.- -eanerotrna No. A -110
ssrswt ow airs etrstcaul tsttratttairre roe
Moms
I. Sib attaebmsat seta forth record retaa-
ttaa »Quireareats for /rants and other agree-
bent. with recipients federal sponsoring
agencies .ball not ttmpoaa any record reten-
tion requirements upon recipients other than
those described below.
1. !steel for pangrupb !, this attachment
oho applies to subrecipieats se referred be
11a paragraph 0 of he basic 'Ocular.
• 1. rtoaaeial reeorda,supporting documents,
btatietleat records, and all ether records poll -
sent to an agreement shell be retained Sc* •
period of three ysan, with the fouoeto•
gUalitenths,
a If any ltttgation, data or audit b started
before the srptntteo of thee-year period. the
i eoorda !bail be retataea natu all utitatiets.
statma, or audit ladtnp Involving the records
have been resolved.
b. Records for aoeerpeadeble property se-
eguired with federal funds than be Matadi
!o $ years after eta Ind dLpastttoa,
t. When records are traaaferred to or ,oats-
darned by the federal epoaeortog ateoey. the
••7aar retention requirement le bet app)tea-
. srpsad1•
el other atree-
Wall/. from the
annual
NOTICES
1. tesetpteot time 'bond be &v. h the ant rpcasortat weary,
D they so ddstre, no trubetttote iaivoftsa
septa, to lieu of orittaattoo:oda.
i. 'lea Posers/ s oaeortntt steam shalt re-
quest transfer of Pennon mores to the cm-
Wady tbom recipient srga teatsoaa teen It
determine that the reo ells poser bot-
tom retention suttee. *owever, ft seder to
ovoid duplicate record- keeplag, • Tolersl
spun ceing sooty may awe arrangements
vats rSal1pient ortes>eeuens le retain •my
records that are eonttanousty needed ter
Mains tans.
4.7be bead of the folder epoaaOring eten-
s7 sad the Ooasptro)ter Otaeral of the Vatted
States, or any of tbstr duly authorised repre-
sentatives, dealt have afters to any pertinent
books, deeuameat, papers, mad records et he
recipient srgentaatbo and dbair sabre-
Orients to mate audits, ssamtastiaas. es
wrote and tre serlpt.
0. Vetoes otherwise require! b law,
Peters/ spoaeortng agency Malt place
atrectbas on se)plent ortaalsatieft that
limn public wow to the record/ of sec plea
oreaniatiosa that are pent:est to a gran
or warmest tempt seen the wary
tlemonatrate that noel moor* must 0. tip
sensdentiat and mouth have been mob
boa Llostas ire pursuant to Use freedom
laformatton Act (1173.0. ii!) If the
feed tonged to the federal
Ar ersttsrrt D. --motes do. A-110
a•a•att moose
tb standards sett f� agencies a ��
red. nog recipient Opalsstioas
for •ro;ram bcome refatr4
snap to whole or m part with
funds. Progreso Income represents
toms sd by the recipient from
orally e • • ported activities. linen
etude to rest wood ea id, . -
*talode, t will sot be Molted
from lord fees, sale of to
o neat tad altos
'r' fro
!. interest ft on ad* -. _ of federal
rued. shalt milted to tb oral agent/
*rcept tor m- t tamed . - ad*araa 40
States o ntaiitls, a iltete se m-
elded by the in move - aw Ocoperraugsz
Act at IMO (Pub Law 77).
V. Proceeds fro .- the • e d teal sad per-
moat property M tided by the Pad-
oral
Ooverament et mad to 50o10 sr In
part with Federal obeli be bandied ft
accordance with At meat >t to the eir-
cutar psrtatatng top ` rty asaasgemeat.
4. truism the • ant provides other-
wise, Pselpis to of l t ve ems obligation to
the federal Oar -e. with respect to
royalties received a re t of eopyriglte er
patents produ- wader a grant or other
aeroemtat (sae are:jr.pb Attacbmeat Pt).
0. All other cram taco earned during
the project - ad shall be tatssd by the
recipient era- to a0dorderaee tb the great
ter other sr meat, scull be:
a• Added ?undo toma1t to the proj-
ect by to federtJ sponsoring Nether
recipient tantration and be to eligible am objectives;
b. • - to Inaba the non -fed
et the jest whet approved by to
Iffo 0. tatted trots cis* tow pro)
is et nniafag the set Bests on wit
Aid abate of eta nom be based.
Arreesnmrr s,-- � lie. A-
*0? sansei stn esaretmrf
1. Tale ettaelment sets tort criteria
procedures for the al)owabWty of cash
•
7
Haab -• ts
to - • uat
tb ,dusk
ta-
ts a hid -
ings m-
end may
. locums
Uo, mate
tents sad
t share
federal
seats
the
52017
to -kind eoatrtauttoee made by recipiaaL or
brseipl►ay (se rafarred to to paragrepb i
the basic ebeutar), ear tales parties to sat
*0 * sharing sod ae.taisiot esquire
ate at basksral t apattaarlai aeons. Sh -;
a
macs ` metabt)shes caner!s for
land aoatri►nttco1 matte
art forth f seed owppte note the
ate
with M tart &artist to
! tin sertog ydo/tte m apply
et the atesehabent:
� a•�a. --)Toe jest sorts are
boob fort (se sat bra to the
allot • the � w the !s -t*ad
h the r!eoeet�pylast tr : Or other • !ebbs/ the objectives 02
semaat lariat tbs pro
b. ▪ CYt
portion of
07 the find
a. Cask
o+prwat
by Use
Psetplemt by
bets a if>,t
I ran: low
rice -fetide
lacrimal parebasad tIttt
as the reetpleatls -bind
Oiled foe ribu . .
aborts' for roe/
able peronal
its' and der.
gr• ogram. Idea
1. General wide
mar enstehtag 'Aortae at
(1) mares :.
o utlays by °t
period; esamplee
&r for ►v0-
trtbute* ori�
foe - Peden• 3 pub
sad sari private
sad realssad
st, donated
•teade and
abettors sad
b. All so
Sled. shall
sate et
tontrfbuti
trtteria:
(1)
rocorda
any *tine
eat obtothig
end matching
)act tr proem
m
trtb�etrio, -a+ta
reelpiente
esorney
Mbrties*
t the false
tied b
tb
se sad
et
4)
t'I'1.
the
i/-
IiDp
Is
h • pi.
trtbu-
Par'tiea
e ant
or pro
retteral,
at that
not borne
trtactions
sea 7, melee
tan toted to me
parties.
-kind sestet-
senea*b use=
the recipient sad
7 ethos au
, may property
be eenehisred
trtbatlosa. to-
Is the of
Leon red
ths be eel ttngwaad
the project or
eti
tor '°awnas: *0t
t*b.15g *07 spinet
by the recipient as
en • dicta: �tbs project
reetstioa sod am
loan. with mo0tb eon-
to the ipleat by other
bgeae and tnetttattoaa,
tendons d ten lviduala,
• •.
morale' - by seniors
er Maas Min-
ers]
ft
tom- public
tea.. priests togs-
to
• dtviloay,
button& both
secepted Y
sad esattb
meet an at
sat Io-
pert the reeipl-
whea such ,
Us folio:Int
fn'llabl. Deem the
not 1ne)eded as *0001 +
to dually- datlrtsd
awemary and reasonable
diciest encompiiyhmsnt
plant*.
tie= 1err
reject
be al-
miae:
reru-
n t
!swab
types et the applicable *sure lee that easttppjl
(0)
Are Sot petit by the federal
Ian
undo soother aalietance
Use etveemeat b authorised by
wtobe mod tosort *saris*er
lsaM p wed tar te the approved
rat by the faders! wag;
7) mines to .other prari loot of
4. *a t,
ter *tdpieat p -toad tomtit0
will 0. ertabttabed ten aecordaaoa
• applicable et prtadpiu.
!. spume procedures for the tortoise's m
tstebitabtag the ?slue st te./tad soatrfbu-
N1 1tAl g00tfTgt, VOL 41. NO. PIS- Adl10A1, PAY N, t01
PAGE 3 of 10
1201B
toons from non-Federal third parties are sot
girth haloes:
'a. Pales of refrwten starlets —Yo1un
r services may be furnished by profession
ti technicai personnel, consultants. a
et skilled and unskilled tabor. Volunt
lees may be counted as cost sharing
thing If the asrvice is an Integral
sr; part of an approved program
( *airs for p•hYaferr arrtices. —Pate for
vo%u terra should be eonststent with me
}std for similar work in the metes nt'e
Orris tton. In those instances In sail
requi skills are not found in the p lent
organ! tlon. rates should be consist, with
them Id for similar work In the is r mo-
tet in hleh the recipient cDn pet for tits
kind of mites involved.
(1i i► untetre employed by oth . orfsst-
Ninoss. When an employer other hen the
vsctptent urntahes the services an rat-
ploy's. Us • artless shall be val ed at the
employer' regular tote of pay t elustve Of
fringe ben is and overhead cos ) provided
these serd s ars In the same ak 1 for which
the employ M ftnr-naily paid
b. Valest of donated. u ndsble prr-
aoss! pro donated. • ridable per-
sonal pro • . includes such lams as s
vendable equ • ment, office plies.
gory . suppita •r workshop nd classroom
supplies. Yalu assessed to pendabt, per-
sonal property I eluded in cost or match-
tag ;hate shou be reams Isle and should
not saceed the rket we of the property
at the time Of e donat •n.
C. Valuation a direst t pt *tsL bawd ble
prisons! prepert or
we *Stereo'.
f 1) The meth • . t»a
sharing or snatch
vendable personal
land may differ
the grant or Other
(a) 1.1 the purpose
agreement is to asst
sequtattion of equip
the total value of
M claimed as cat
(b) If the pu .. of
support •turtttes hat
equipment, butidf p or
or use charges for equip
may be made. Th futt vast
other capital is std f
tot land may allowed
Tederas agency has appro
(1) Tbe vat of donated
I determined f secordanee
amounting pe ales of the n
following qua Ieations:
nd buildings —
and buildings m
t value. at the elm
ent as established
rattler (e;.. certtee
er or OSA represen
y • responsible *Inc
NOTICES
unteer services must be doe
and. to
same methods
empioyees.
b. The
for
4,
for charging cost
r donated tsones•
erty, buttdtnp and
g to the purpose of
ernent as fotios's:
t the grant or other
the recipient In the
t, butidtnp or land.
noted property may
fig or matching,
he agreement b to
quire the use of
and. depreciation
nt and buildings
of equipment m
r rental charges
ovided that the
d the 'charges.
i-operty will be
tth the vsuai
tent with the
0
(a). Lend
donated Ian
Its fate mar
to the root
pendent a
arty apps
certified
eeetpent.
(b) If e :pendeble personal
The vest of donated nonespendabi
propert shall not exceed the tat
value o equipment and property of
ages condition at the time of
(e) se of spare —The value o
space all not exceed the fair re
of e• parable space as establish
Inde trident appraisal of eompars
and belittles in • privately-owned
In
e same loestttf
Loosed equipment. —The valve
10 ed equipment shall not exceed Its
re tat value.
The following requirements pertain
e recipient's supporting records for
nd contributions from non - Federal tb
snits.
• value of
not t- eaeeed
of donation
y an fade -
red prop-
rives) t and
1 of the
ent feasible. su - by the
b pleat to Ma
r determin
al services. material.
1n41 and land roust be (locum,
Aaabesersws Fa-Carouse 2eo• A -110 every two years. The frequency of these es-
RawsAaos pot eawawetnt aasususacaelisee asmtnattons shad depend upon the mature,
s here s air and the eeomplesity of the aetvUty. These
1. This attachment prescribes standards for �mtnatioos do not relieve Psdersl agencies
U+* tee them audit responsibilities, but nay affect
Anaemia! management systems of recipients. Om frequency tat mope of seat audits.
Federal sponsoring sgentiee'ball not teapoae I. A systematic atetbod to arum timely and
add Mortal standards on recipients unless ap tats eesolntbon of waft funding, and
Melvin) provided tor in the applicable Ma- small mendstbone.
tutes leg., the Joint Funding itmpttfietion s rimary ptsnti *all marsh," stttxe-
Aet. F L. 03 -8)0) ore other attachment: to this sdplents (as dossed is paragraph d of the
circular. Iowerer. Federal sponsoring ages- basic circular) to adopt the standards bb
ales are encouraged to soaks ingestions and paragraph 1, sum except fa he require.
sestet recipients to eatbalisbing or Improving ascot in subparagraph 2+e. regar4fng the uses
fineness( management eystons sites smelt as-, at the Setter -of -;edit method sod that part
setance a masted or req • of subparagraph la, iresardtat ieporung
1. lteetptenia' financial 'management op- terms and frequendes prsserlbed In Attach-
tarns shalt provide for most O ea this anent.
a. Accurate, current and complete dLe10 -,
sun of the financial results of mob federaily
spon+►oed project or program to aecoedaaa
with the reporting rtqutremeats set forth ins
Attachment 0 to this circuit:. When a Fed-
eral sponsoring agency requires reporting on
an accrual basis, the reetpsent abatl sot Mr
required to establish an'aeeruel accounting
system but shall develop such accrual data
for its reports on the basis at an aaalysis of
the documentation oss band.
b. !Records that Identify adequately the
sourer and application of funds for federally
sponsored activities. Tinos records shill con-
tain information pertaining to 'Federal
awards, authorisations. obligations, nnobll-
gatsd balances. assets. outlays, and taoome.
e. !Effective control over and accountability
for all funds. property and other assets, lie
etplents shall adequately safeguard ail such
asset. and shall assure that they are turd
solely for authorised purposes.
d. Comparison of actual outlays with bud
get amounts for mob grant ar other agree-
ment. Whenever appropriate m required by
the Federal sponsoring agency, inane!►l in-
formation should ba related to performance'
and unit exist data.
e. Procedures to minimise the time elapsing
between the transfer of funds from the 17E.
Treasury and the disbursement by the recip-
ient. whenever funds are advanced by the
Yerderaf Government. WbeD advances an
made by a letter -of- credit method, the incip-
ient shall snake drswdowns as close as pos-
sible to the time of making disbursements.
1. Procedure for determining the reason -
enteneu.attoa- ability and aUoeabittty or tests
in accordance with the provisions of ti» ap-
plicable Federal cost principles and Use forms
es the grant or other agreement.
g Aeeounttng records that are supported
by source documentation.
b. Examinations to the form of audits Or
internal audit Such straits shaft M wade
by qualified individuals who are sufficiently
independent of those who authorise the ex-
penditure of Federal funds, to product wn-
btased opinions. conclusions or judgments.
They shall meet the Independents criteria
along the lines of Chsptdr S. Part 1 of the
U.S. General Accounting Office publication.
Standard~ for Audit of Oonernmental Organ-
izations. Programs. Activities and Functions.
These examtnattona are Intended to aseer-
tatn the effectiveness of the financial man-
agement systems and bnternai proraduresd
that have been established to meet the terms
and condition' of the agreements. 2t Is not
founded that each agreement awarded to the
peetpient be examined. Generally. examina-
tions should be conducted on an organiza-
tion-wide basis to test the Steai integrity of
valuation
ent,
financial transactions, as well as oompiiance
with the tams and eondtttons of the Pederst
grants and other og.•Tes. nts. Ouch testa
would include an appropriate tampltng of
Federal agres:meta. Examinations will be
conducted with esaaonable frequency, on a
oantinutng basis or at soh eluted tntervals,
usually annually. but net base frequently than
personal
market
e some
• nation.
y nated
rata
nice
td y an
bit pace
by - Int
elaTat-assevtr 0.—Camels Ito. A -110
ssxa,MRAi. aMPotrsres assalouAtmres
The attachment prescriber uniform
tog procedures for recipient* to: s
ise expenditures made and Pedaral as
pended for each award, report the • tus
eras mob advanced. request ad nee
ambumement when the letter relit
1s not used, and promulga tend-
Incident thereto.
fotbsing definitions appl or pa-
ne attach:sant:
ixpendtfvr01. ed M-
ars the ebarg• by the
ring a given period - utrtng the
funds for: (2) -- sad otbK
y received: (1 treloea per -
toyses, eon , sukesetpt-
r payter.. d (8) fdher
fig owed n .. r' programs tors
t sonless - performance Is
ed income is the
a given period
ed by the reefpl-
orher tangible
unbosom; and (1)
to the recipient for
ea cc pertormaaa 1s
ent.
authortsat.—Poderal
a total amount of
tad • she Federal Oov-
by a recipient. This
de an autborlaed carry -
ed Yea from press /tat
sieved aw er agency
en
of
and
meth
srd to
1.Tb
poses
t.
penditur
recipient
provision
tangibie p
formed by
cots, and
amounts
wbteh no
required.
b. Accrued
sum of (1) earn
from (1) minims
ant: and (11)
. property delivered
amounts becoming
wht&D no current se
required by the noel
e. federal to
funds enat.horized
Federal funds orb)
ersrneat for
amount stay to
over of unobit
yean when
ngulatlota.
4. fa -kfwt
trtbutions at
the circular
a. Obit
amounts
grants a
Mt tra
will requ
the ea
1. Olt
nhrbsit - n -ktod atria-
defined In A ehmeat 1 to
dons.- Obligati • are vibe
order placed, streets and
ded, services nicety •, and stmt -
ttons during a glean • rlod that
e payment by the rectp nt during
or a future period.
(qe.- •Outlays or impendtt a repre-
sent • 'gas made to the project or rogram.
They y be reported on a cash rue)
baste or reports prepared On • - base.
OW are the sum Of actual cash d -urse-
me for direct charges tor goods an sere-
the amount of indirect expense god.
valve Of la -ktDd contributions ay • ed.
a d the amount of cub *dainties and
ents made 10 subr cIpltnts. For reports
steel on as accrual basis. outlays are e
um of setwl cash diabureunio s for Si
charges foe goods and services. the annun
of indirect expense Incurred. the value Of to-
7-
i utat 1EOtST1k. VOL 41, IMO. 141—F1itsAY, 1111tY 10, 1976
PAGE 4 of 10
ea ooatributloh• appneo, ah0 toe lm-
• for decrease) to the amounts o
!pleat for goods sad other property
for services performed by employ. ton, aobr.dplsatt and ether
iN+ other amount. becoming Nod
Est for which no "wrest errs -
nee a»
` Peering -me. -- ?,*gram (so0m•
Deed to At ant D of this etrcnlar. Y4
reported
oath or socrual bests.
htehevsr le wed for outlays.
1 peiebft/tlftd pals - -Tee tsoebitgatsd
laslre s the portion • funds author-
agency that
obligated !pleat and sa
!ermined h ieduettlag th umtesti»
2lgatfoat from the tumelukU,. ode au-
•
e t
y be
the Federal
not been ebl ted b the
s Paitgutdated sbNtsttont. -for
on a cash bests, unitgvisted
heat »present th(smount of oblige
ur»d by the recipient that has sot bee
!d. For reports prepared ea an aeeruod ex-
penditure bests, they represent the amount
obllgitiona taeurrsd by the rsc1pltat tor
which an outlay has not been recorded.
•. Only the toIlos•Ing forum Will M an-
thortsed for ebtatatng 11O&OCIIII tnfoematlon
from recipients.
s. ltnaftc4l Stator Report (Bsltebtt t).
(1) tech Federal eponaortng agency shall
require recipients to tae the standardised
Fin*aela1 $tatur Report to report the status
of funds for ail noneonstructlon projects or
programs. The Federal sponsoring agencies
missy. Botnver, have the option of sot re-
quiring the financial Status Report when
the Plagued for Advance or Reimbursement
(paragraph 4a) or Report of Federal Ash
Triaaactions (paragraph alb) b determined
to provide adequate informetbn to sleet
their seeds. except that a final financial
Otitis Report shah be required at the com-
pletion of the project when the Request for
Advance er Irelmburaemeat for is used only
for sdvaness.
(0) The Pedersi sponsoring agency ohs
secrete whethe the report "hall be
b or accrual baste. If the Federal
big agency require teerual
the r•ctplent's aceouattrtg
molly kept on the
pleat shall not be required
counting system, but
ecrual information throu
eel on an analysts of
hand.
(a) Th Fed
eter
tet
vest
particular
*port
than
uhf
(1
t
spo- •r-
taformati and
record• sot
accrual .`the re-
*carat tte
eeslop "web
bet inmate
• documentation
• •rat .. • .ring agency shall
mine he h envy of the Financial
w Report Yo nib project er program
derlag th - tze and complexity of the
p - t or.progrial fowever, the
shag of be required more frequently
qu erly a less frequently than an-
y cept Y provided in subparagraph
v. A Anal report shall be required
• completion of the acramant.
Federal sponsoring agencies shalt re-
•
NancEs
Matsu saport (origtnat sad so more tea
tiro Kopko) no later Chao a0 days after tab
sod of each specified reporting period- for
=tiler and sera1•saaual »ports. and *0
y for annual and Anal reports. Ratsaaioas
to reporting due data may he granted upon
b. request Report of Paters' ChM Prasaasatioass
(Batttbtt a).
(1) When funds are advanced to
sectplents through letters of credit or with
Treasury Mocks, the Federal aponsoriag
aIenele shalt require each reetpleht to sub-
set a Report et Federal Cash Transactions.
The Federal sponsoring agency shall we this
report to monitor nosh edraneed to recipients
cad to oblate disbursement tntormatoon for
earl agreement from the recipients.
(3) federal sponsoring agendas may re-
quire forecasts of Federal cash requirements
to the "Remarks" section of the report.
(g) Rhea practical and deemed neoees"ry.
the Federal sponsors agencies may require
carts to report is he - Remarks" sell
!,mount of cash advance in weer
days' requirements m the heads of
rwelp is sad to provide short *arts
plans of actions taken by the
�s rrdue woes, Wanes.
(4) Reel -
to .Sall be »gar
mare the original an
tho Report of dorsi Cash
working 'day t• •wing
•
set tea
quarter. The P
may require a coon
Heiplrata receiving
muuon or Ogle
(d) Fed•n!
e requir•me
decal
advances
provided
thro
tae
•
»-
pants
to submit
wo copse of
inactions 1g
cad et each
rooting agencies
report from those
shoe totaling 41
sat.
nog
dal subbm1sti
1 Pe Traasaeaons
not exceed, 110,
•• at such advancer
other forms contained
vet, or ff. to the federal
eye opinion, the recipient's woo=
trots -
trols are adequate to mtnimtfe exceed
decal advances.
4. taeept Y noted below, easy the follow.
tag forms wilt be suthortaad for the recipi-
e nts la requesting advance and reimburse-
ments.
a. Regime per Adam" sr RefatDvreslwetef
(teethe 3).
(1) Caen Federal spnnaorfag agency !!sail
adopt the Request for Advance or Reimbune-
✓ ont as a standardised form for all W0a00a-
atruetiaa programu seen letters-of-credit or
redetermined advance methods are not wed.
predetermined
sponsoring agencies, however, have
the option of using this farm for eonatrue-
tfon programs to lieu of the Outlay Report
and Request for Relmbursemsat tat Ooh -
struettoa Programs (subparagraph 4h).
(g) Recipients shalt be authorised to sub-
mit »queen for advanea and refmburae-
ments at least monthly when fitters -of-
credit are sot sod. Federal apowertag
agencies shall not require the submission of
more than the original and two copies of the
unit . dv •e -r imbure meat .
R
via may waive
of the Report
a monthly
000 tselptsnt,
are nitered
at-
... ing
22019
b. Outlay report tad regaat for ref
rur•crneut taw souttraetton prolry,» :
(1) Bach Pederai aponaortnt sten ahal
adopt the Outlay Oa q
hsabbvtasmsat for Ooertrutuoa v • solves ar
Use standardised »neat tow .. .for n•
procransa The Federal - ins agvaeier
wy. hawser, bass the . on of evbstttut•
lag � Bequest ter . e or ft•imbttres•
Banat Perm (et .. raph 4a) whet the
Pederal agenda ribs that tt provider
adequate tat- - -a to swot their seeds
p) baelpieo than be aotborteed to sub.
NM »guests or reimbursement at Mast
mthly • - Iatstrs- of-e»dit are not used,
Petard ag spades shall not require
*wits- • the original and two copies or the
Report and eq ueet for Relmburs•-
Rte for Construction
the Federal npowortng agencies
additional eaformstion t* using th»e
torma or more frequent reports, the following
*hall be ebor red :
a. Wpea eddies:cue tsfora arson t• seeded
tls comply trlth istlalatln twquirsmeata,
Peden: sponsoring agencies dull issue ia-
dlruetiom to require incipient+ to submit
each Information MOIST the "Iternarkt" we-
don `o1 the reports.
h. When seeesery to anent tlpetite prof
grans needs Federal sponsoring agenda shall
!reheat the proposed reporting requirement.
to the PinaaNal Management grannie, Budget
bevtew Dlvlslon, Oma of:Hanagemeat and
budget for approval prior 1. *uhnemion of
the - reports for clearance wider the re-
visions of OMB Cbtalsr No. A-60.
O. 1►hea a rodent sponsoring agency gas
determined that a recipient's seo0uating eye-
lets doss sot aetet the iltI.adards for P1..
maneis; l tanagemeat aontataed in Attaob-
aont F to this circular, additional perttoent
tatonrtt,ttoa to further monitor tracts and
other agreements may be obtained upon
den notice to the recipient until alma
• as the system is brought up to standard.
The Fedsra! sponsoring agency. in ob-
pbs a, b
to report dear-
s of Manage-
. A-40, Y ss•
odes have the
Hoe item on any
deeialoh -auk•
etas should se-
n from the re-
format or rem•
mend formats.
S. Federal sponsoring ages t may pro -
.1ride computer outputs to rectpte when 01
will expedite or contribute to th oewary
«0. Federal sponsoring agenda are
hied to reproduce these foram. TAs foram
reproduction purposes an be obtained
taro taformatfOn Y le parag»
and a n, inns! comply with anon aunts et the O!d
swat and udget Ctesutar flo
Weed.
S. Fedora
worts/ see
optics at shad! -
out any its
report that is win wary tor bog To Federal
ages
dept the identical !af • do
elplents to machine lash
putter printouts In lieu of pre
PAGES 32020 through 32028 inclusive have been deleted on purpose]
ft[oltAt itch ?I1, VOL 41. NO. 141 - 1RIDAY, so. 1936
PAGE5of10
or-
e
Arraet:nem R.•- Cactrua No. A -110
. -, 3xroarina PSOOLiat
PS:SPOO starred
,.Recipients -a mon •r + •pt orm►nco
tinder grants and other agresmena and,
where appropriate, ensure that time sehed-
isles are Wing mot, protected work starts by
pens periods are bang aecomptlsbtd, and
wther performance goals are Wing seblend.
This review shall be made for each progrant.
!notion, or activity of each agreement sa set
forth to the approved application o award
tip ea s a Su IA •
ort (tech0lesi report) for each agreeneen
briefly presents the folibwtng ante-
r etch program, funettoa. or sett
sr prescribed • Federal
Non
involve bed b tb
so
a. coin
with the goes.
ladtngs of 1h
output of progra
quantified, such
be related to cost
unit costs.
b. Ramon. why astab! .
neat.
e. Other pertinent inform
when appropriate, analysis
of coat overruns or high unit cos
4. lexeept as provided in •
and in subparagraph tail). At
recipients shell submit the pe
technical reports to Federal sp -
ore end the Finaneial !tutu
{ ertng the same period to the f q
'Shed by Attachment 0 of •
where appropriate, a final
forrnance report after a
project on a date sped!'
sponsoring agency. The
agency shalt prescribe
which the performance
matted with the request .
bursement when that -
of the Financial Statue
vlded for in paragrap
'reports shall not be re
than quarterly or ie
smelly. Federal sp g of
waive the requirem
mat performann r -
reports under the 1
a. When the r
mit a performan
ton or rennet $ -
b. When the
termine that
and certified
eight to evalu
ey:
riaon of actual accompttsh
established for the per
nvesttgator, or both.
or projects an be
antitatln data
for oompu
ed goals
Ion
eh
orma
oaring
Reports
ueney *stab-
• Circular and.
hnleal o per -
pletion d the
by the Federal
Octal sponsoring
frequency with
ports will be sub-
s advance or "elms
rm is used to lieu
port. Incept Y pro -
below, performance
teed more frequently
frequently than n-
earing agencies stay
t for recipients to sub-
orn with the iinanetat
ilowtn circumstances:
prom ti required to sub -
report with a conttnu
l i cation.
dereJ sponsoring ages
-site technical Inapt
mpletion data will
• construction prof
7
tat
the
the
►dtly
ould
on of
not
eluding,
lanstion
below,
•nt O,
• o •
n
e. When th
quests tnnu
year buts 0
pretties* re
11. Setae
porting 4
signifies
gram. in
inform
as the -
known
a.•F
that
tarn
tug
the
a-
Federal aponsorin
financial repo?
t tt b necessary
rte On a ta1tn
n the require
•, event en
impact ups
such !ratan
e Federal s
flowing
oblem1.
111 aoa
roars
f tim
teal
ash
e
e-
ons
suib-
geney n-
on $ Anal
get annual
year bash.
erform►an :o re-
eeeur test have
he project o pro-
the recipient shall
nsoring agency as soon
s of conditions become
NOTICES
intieipattd or snore work units to be pro -
uced than originally projected.
4. If any performance review eooduetsd
the recipient discloses the need for Change
• budget estimates in Oceoodancs with
rtteria established In Attachment J fo
rector, the recipient shall submit s rs-
r budget revision.
Federal sponsoring agency shall
visits m frequently m practicable
bye. or adverse conditions
Iatly affect the ability to at-
objeetives, prevent the mett-
chedules and ;oafs. o preclude
ant of project work units by **-
time periods. This disclosure shall
panted by • statement of the action
• or eontemplated, and any Federal as-
et needed to resolve the situation.
Favorable development or event that
tt • -her than
b
in
the
this
quest
T.
mate e1
to:
• Nevis aecompttahenests and
swnaleme control systems, and
b. Prov11 such technical ambiance as
dray be regw a.
S. Federal - mewing agencies shall submit
proposed teeha 1 and performance reports
to the Office of nagement tad budget for
approval to not with the report clear-
pace requirements Oka Chanter No. A-40
as revned.
taTILIEWT
osija Ito. A- 110
glee
Id023
1. Tab attachment tabibhes the re-
quired methods of make ayments to recip-
ients. These methods will • nine* the time
elapsing between the dish went by these
recipients and the transfer o tam from the
tinned !tares Treasury to • recipients
whether such disbursement • . um prior
er subsequent to the transfer fund.
1. Payments sin be made ntlp
through • latter -of -mod It, an va
Treasury cheek, ate a reimbursement
Bury Check. The fotlowing dsfintti
to the purpose of this attachmsn
a. Letter -of- Credal. -A letter an Instrument certified by an
clef of s Federal sponaorint
titorises a recipient to
dad from the Tress
Reserve bank and ••
1 bank, Is secs
Treasury
area
bons
steed.
b. Ad
nom by
by a Treasu
request brat
recipient,
mined p
e. le
H1mb
eery
f
e
by
•
the
nt seh
autumn!
meat by Tr.
set paid to a reef
•irnbureement from
Zscept for sonatrvetto
ther construction agreements
tionai payment' methods are au
described to paragraph i. the letter
method shall be used by 'Federal spo
agencies U all 01 the following gond
exist:
a. If there te se will be a eontinuisg rola
tlonahip between a recipient and a Federal
sponsoring sgeney for at least a 11 -month
period and the total amount of advance pay-
ments expected to be received within that p..
iIod from the Federal sponsoring agency b
0310.000 of more. as prescribed by Treasury
Circular 11o. 1071. for joint funded projects
the Treasury has authorised a dollar crlierta
of $120.000.
f -
ibor
envy that
e funds
, through le
• recipient's' tom
ante with the prevl-
cular Po. 1076. as re-
eats
e by
mis-
apply
It is
..m-
n
saeu*y eireck. -An ad-
y cheek is a payment made
heck to a recipient upon its
utlays an imitate by , the
h the bee of modetsr-
ules.
?reentry ehaek. -A
cheek b a Trua-
nt upon request
elplent.
grants and
whieb op-
bad. se
-credit
1n`
AB
1071. when the recipient maeta ati or 1295 h-
`nireenenta beatified to ph il, tabov:
accept thoe to eubp:.-.gra.7h D►.
4. The reimbursement by Treasury
seethed shall be the preferred method
Recipient does sot matt the sequt
weather! to ►ubporagrapbe /0 and
At the option of the Pederal
sgeocy, We method may alto b
sonttruetfon agreement, sr of
talon of the program is
private market !a►aetng
and the Pelletal anis
Minor portico of the
flnbureemeat Method
preen thirty ty days
babes tbs 151111 �
O. Whoa the
awed. the
•ottdated N
to sever an
and other
scoring
We.
met
Mil
b. if the recipient has established or !em-
onstratsd to the F!edera3 eponsorint agency
the willingness and ability to mstntaln pro-
cedures that wilt minimise the tams elaps-
ing between the transfer of funds and their
disbursement by the recipient.
e. If the recipient's Annelle! rnanageneent
system meets the standards for fund Control
and accountability prescribed to Attachient
F to the Circular. -Standards for Financial
bfanagernent Systems "
4. The method Of advancing funds by
Treuury check shall be used. in accordance
with the =revisions of Treasury Circular No
th•
eats
above.
dansoy
Major pe-
ed through
Peden/ leans,
aonrtitutes a
am. When the re-
used, the Federal
11 make payment
rsoelpt of the Inning.
ter-of-credit procedure l
nt an be issued one eon -
- of- eretit wbenem possible
fpatad Cash seeds for x11 trusts
re•ments awarded by the aeon -
017. tJteww, to the eeriest pee-
n the ads ►Dee by Treasury neon
Is used. advances should be sun -
tad (pooled) for all grant and ether
ornate made by op�'mg a�7
that recipient.
7. Unless otherwise ngutrad by taw. Pod-
Iasi sponsoring agencies shah sot withhold
payments for proper charges made by reetp1
sots at any time luring the project err pro-
gram period unless (a) a recipient has fatted
to empty with the program objeOUve . aimed
sondiuons, se Federal reporting require-
ments; o (15) the ret:tplent is indebted to
the United States. and collection of the is-
debtednem wit1 not impair sec�ompltahment
St the objectives of s project o program
sponsored by the Vatted !tats.
Vadat ' net conditions, the •poneaing
agency may, upon reasonabis notice, tutor's
the recipient that payments *111 not be made
for obligations incurred alter a Teethed date
nil' the conditions are corrected en tb• to-
btadaees to the Psdsral Oo7ernment is
uldated.
reambiewe 7.— Cacm.a No. A -410
aX ?solo f a lrota05UL PLO0$
is atteehmeat seta forth criteria and
es to be followed by Federal spon-
6 notes in requiring reetptente to re-
ona from Muncie! plans and to
royals foe !mantle' plan re-
els' plan i the !parietal ex-
project o program as ap-
e application sad /or award
elude either the?ederal read
o only the Federal share,
pe aeoring agency require-
related to performance
t on purposes whenever
d trod by the Pedarat
1.
proceed
goring dirt
request
Melons.
S. The
adore at
proved during
process It may
boa - Federal sh
depending upon
Mesta. 11 `should
or program eve ua
roprtate an
wring agency.
or noneonstruet
rnedtatety leg
encoring agen
Cleve that wi
n will be
4.
dealt
Federal
resao0 50
tfays s're
following
a. Changes In
the project or
b. The need for
e. The transfer of
indirect casts to absorb
test o win versa, V app
by the Federal sponsoring ag
1. The expenditures os requt
$ceordanee with TUC TS-s. -cos '
few leduattoetal Institutions - For
awards. *porno! requirement f
items of expenditures may be kneeled i
are consistent with thou in TUC 1i•$
other - utromtnt to - Inc items ms
awards. recipients
et approvals from
es when there 1s
n the pelt seven
emery for the
• scope o
am.
et
tt
vat
• objective of
sera) fund-
get for
teat 1 erect
at te
tared
Pie
vat to
Diet
her
of
7
MODAL DialiTtl. VOL 11. (MO. 111�d1DAT, JUIT 40, 1176
PAGE 6 of .10
IPAGES 32031 through 32034 inclusive have been deleted on purpose.'
tern
ved unless a �dsrlatlra leas best and
et.
en:dents plan to transfer toads alloteed
mg •lfoeaaeas (dine payments to
to other categorised *sprier.
the substantive programmatic
grant or ether agreement soy
a ttaaat without r
Federal spoasrrtag weary.
aot apply to Mr p
al, aquipssat, st pDral
mooring woe" troy
lei transfers d Reads
orbs for wards to
eared. 0100,000
t of such trans-
it *lard live
art approved
art
tint at
na, sad
to an
4. 1st -..
wort
be subeon tread vitb t gar
approval of
This provleloa taehass
01 .uppile. lea
i.Tin lades!
kW. st rte option,
among direct cost
which the Federal -
wbsn the cumulative -..-
tars *songs er Y arose
�e►os�t of the total budget
W the spoueartat sgetry. The testa
atoll apply to the cumulative •.
transfers among program., tune
artdvttes when budgeted separate!
inert moot !tat the Federal spa
agency shall permit ao transfer that
reuse any Federal appropriation. or
!bare*!, to be toed to purpose ether
those tntend•d.
G. All other shaatw to aoaoonstrtrctbn
budpta, except to the changes dasertbed
In paragraph 0, bets,. do sot require ap-
proval. This Includes the use d rectpteat
funds in furthsraate of program objectives
aver and above the reetpleat minimum there
!Deluded in the approved budget.
7. For construction awards. rectorate
shau request prior approvals promptly from
Federal sponsoring agencies far budget ve-
rsions wherever:
ir. The erasion results from changer be
the seer or the objective of the project er
program. and
b. The revision Decreases the budget
amounts of regent funds seeded to mom-
pieta the project.
IL When • Federal sponsoring •obey
snakes an award that provides support .for
loth construction and Doneonstruet.ton wort,
the Federal sponsoring agency may require
the recipient to request prior approval tram
the Federal sponsoring ageaey before making
any fund o budget transfers between the
two types of work supported.
0. For both construction and aonooastrue-
tton awards. Federai sponsoring epodes
shall require recipients to entity the Fed-
eral sponsoring agency promptly whenever
the amount of Federal sutborised funds le
expected to exceed the seeds of the recipe
by more than 0.000 or Ave percent d
Federal award, whichever le greater.
notification wgi Dot be required It
bona for sddlUonal funding are a
Tor continuing grants 31 -scab es
10. When r
revisions, reef
tonne that w
unless • letter
I1. Within 9
of receipt of
slant, Federal
view the regU
whether the b
proved If the
siderauon at
the Federal s
the recipient
recipient m
uld
•e
is
b-
tted
requiring approval
-r budget
recipients shall wee
be budget
were used la apptieWon
request will
unite.
0 calendar
from the late
the rep for budget mt-
aponsori • a/entre shall re-
notify the recipient
budget
visions have been sa-
te ton le rill under eon-
end end of 90 calendar days.
eosing agency shall Minim
wrleinl of the date *ben the
expect the decision.
ewe L.- Crkcv+as fro. A-110
ltOSe0VT era oemva®
U attachment prescribes uniform
ut procedures to Federal grants and
er agreement with recipients.
9. The following defnttions shaft apply for
h -use of the attachment:
I
Are
a 0l ssout.�1le dosoc et d • grant
agreement b the princes try !bleb a federal
$ b).lar buss! **Worms. io teat OD re-
tuned adminitti'at!•e eaeisoDS tai all sw
tarred wart d the apsamant have Mesa
mss plebd by the asofptent and the ladasf
b. pots of f cowpteetsa, —The date at Mau-
pleats le the date m wbleb all wart reader
grants sad ether ag+.ement. Y eampisted or
'Supplement desk es 1st sward donsmsnt, or say
ral eponsorm *mat /been!*, • wlfab
0. Dtestlawt carts.-- atntiowsd aisle are
Oar charges to a pent or other atroamsat
that tae Pedant sttoatortac ateaey or ter
r*pre.entauve Mter•m10 to be emsJlow-
able. far aeaortinnoa with tae applicable Psd-
Wel Bret principles of other saedit ors Ma-
lathed to the agreements.
III. All !federal Pioneering aeries Mari Oh
tot e& cheroot procedure that Include the
tsllowtn; nenstresents:
IL Com request, the Federal epoo.anas
agency stoat! s►*bs prompt payments to a
weirdest f.r afoesble rambvraable marts
ander the doing out. pant se ether ag+eseat being
b. The recipient shall Woodland, Woad
y balance of aaobltgstad (uaeDeumbered)
that the Aedera! sponsoring agency
=a d or paid bed that le lot au
retained by the recipient tar
ante or other agreements.
Federal sponsor
the recipient
the date at
financial. perf
utr34 r the
ay the
by
agency
to
eats
.
lain • .
days
agreement
other reports
agreement.
when raqustad
IL %ben an
agreement, Ike
abau make s sett!
downward adjuster
d mete after time
sin
!at
Mi-
rada:
camp at the
thee, and
ties of tit*
may - nt otrtaaeloe»
see!
53.
MISS R .tb.r
sponsoring 'gooey
for any upward or
btu Faders! sitar!
are received.
at fo any prop-
toads, wr Po-
accordance
a accordance
t It to this
trusser intent bugs.
edit t Kea
closeout d
mat
•. The reetpteat all
arty acquired
tb Ted
salved from
Go•
with the pro ions 01 At
Circular.
1f
t. !n' Brenta line a
Pert
prior to the
err o agreement. the Federal
ate • *ball retain the rtgbt to as
aD riots amount atter fully constde
recomraradauonslo disallowed orb
tint from the loaf audit.
4. Suspension sad tsrtntnetlon peaeseturs
err o talaed flu Attachmeat L to tba
attar.
Ansearszerr L- Ch aevtua Pe. A-130
awValtu0$ arel tsaeewaTren r.aemrvaaa
1. This sttachmsat prescribes uniform
suspension sad term1ostioa praoadw for
Inderte grants sad other agreements wits
recipients.
!. The Mowing denattians aaAS apply
Oct the purpose d this sttaebsseet:
a. TRrnMsttoa. —Tbe tarntaatios et a
grant err. other agreement swans the eon-
collation of Federal spoasorabtp, b ware er
In ' part, sender as agreement at any time
prior to the date dsompfetiea.
b. tnsperion. The suspension of a grant
or other agreement Y as Notion by • Federal
operating agency ttst temporarily im-
pends riders! spoasorsblp radii ter• grant
err
DOW $greepseat. pending eorrsetivs •e-
ttloaby tie recipient r pending s decision
to teretinate the grant or other ap+emest
ley the Federal *proofing wry.
.. Ali Pedersi sponsoring agencies sari
provide procedures to be followed oleo a
wet • tent has raged to mm -1 with the Was
Of !ere pant err ether agreement and eoadi -
lroas or standards Wags that seeurs.
!federal sponsoing agency may, on
abbe Dotite to the redolent strips!}! meet tor ft*
Nag tbs
IL
meant of etbar aQeea�eat, and lltaho Sur•
Mar payments. prohibit the wotpte from
aeTiaj 4ddit10Da1 ebltgttfoae toads,
1aaDdsa4 arfrscttvs se a by the • !pint, or
• Meters b bsrmtas to -. &err with
paragraph 4. The Federal mt bleney
gnat! allow at ltro*aaar7 proper tests
!lent the recipient mold s- bly avoid
Sin t% the psrlod� - ion provided that
Mel eras asset d the applicable
agencies tlb! federal noon
tic settlement ll ro.
n f grants ether Ogresmsai Tone Per Ostrse. -rrbe Prieral
tarn ter' city may rwrw the nab» to
y grant or ether agreement la
dho�' part at any time before the 4t•
!< • • sties, wbeaaver it le determined that
3..
trident ache fatted to 6oenply liter ins
none d the agreement. The Federal
t *4104 shall promptly notify the
plant to writins d the determination and
reasons for the tsrmtaatien, tag•tber
with the ssaetite dab. lsyneeats aside to
ttattpttnts o moonrise by tits Tricot soon-
lariat agencies rider Erects or other agree-
ments terminated for muss shall be In ac
Mediate with the legal liibta and liabilities
ifs My srnt aattoe for eoenrrotsnee. -The Ped-
ant! sponsoring agency of recipient nay ter -
minate grants and other, agreements to whole
err t part,wben both parties acres that the
*rmttauatioa et the project would not pro -
due* bsa•Scial s*.uits ommeasunte with
3.. further tpsadlturs d funds. Tb• two
parties shall ogres upon its• terminatto0 ona-
dittaaa. taduding the et/settee date sod, is
the ease d partial tersnlaatbns, the portion
lee be tsraitnatad. The incipient shall sot
her Dew obligations few the termtnatad por-
tion after the *neat» date. and shall can-
MI r many oatetanding obligations as pee -
atbfe. The !federal spoaaortng stoney shall
Igloo fail coedit to the recipient to the
!federal lbws of the D0sesnoellable obliga-
tions, properly laetarsd by the recipient prior
to lamination.
Arras amore H.-- Cscv*.aa Ito. A -210
arawaaal Toast POI ■,rf.Tnea rob
swat assser30 3
This attachment peoasutists, a stand-
Ord (ls! 49i) to a used by public
and
twin institvtioas �lslgber education.
public d privateDospltele and otter quui-
pubtie Nvsta nonprofit organizations a.
• fern
for applications when applying
Sot Pectoral its under protrann}}� covered
lea Fart k At haseat A, 01!7 t�cular yes
11-01. to ddtU- agencies are particularly
Otsoouraged to s nd the use M ST {94 to
somasoa programs • t2t Slate and local pe-
rm where this rm it Sow required b7
?NC ld-1.
S. The Q 441 may a • be used. on to op-
requirements Clonal basis, to tW>!U tb requfremenL of
CAM Omar A-01 for a a 1llesuoa of tea-
houses. ma applicant to do houses. that
Paden! Ywfstancs will be app d to. Local
fer State clearinghouse proeedur
CI govern
Ms !leer d UN form for thti pp
t.` The standard form will also be
Padres: a4eaear to *report to the
lours ea snake aettoas term on ap
tfone rsrkved by clearinghouses in
Moe with CMS Circular 11-01. and to Dot
Staters at grant- ta-sid awarded ta accord-
ance with Trees Circular 1042 .
POEM 111041114 MOL di. 110. 14S— SAT, AflDY M, fop•
sod by
ring -
es
PAGE 7 of 10
property. -Title to federally-owned property
remains tasted fa `the !tiers"! Oovsraeaeat.
Ileciplenta shall submit annually an'intea-
tory hafts; of tedarylly- o.rned property to
their eustod7 to the Federal sponsoring
agency. Upon completion of the agreement
or whet the property te so tooter Deeded.
the nelpient shall report the property to
the federal apoasortng agency few further
agency iMititaUon.
If the federal Sponsoring ageaey hit oo
further need for the property. 11 'ball be
deetved tepee and reported to the dewed
Services Adrniatstrtion. Approprist dlspo d-
tion lo.truettoai will be Issued to the n-
cipient after sompietlos el the federal
agency review.
d. Seamen property. —lfhss statutory au-
thority stilts, (6i. F.L. $$tit, 42 V,.C.
1642) WV* to aonetpeadabie perannai prop-
erty •equtnd with project funds, Shan be
vested to the recipient upon •ogsldttpn'oa•
kiis it is determined that to do ad M hot tit
furtherance of the objectless it th1 Federal
promoting ateaey. When title le tested 1s
10. recipient. the helpient still' 'Isles so
other ebiigattbn Iet 'deoouattbUtty _th the
Federal Ooesramett for 1U hie sr
EOM-
lion *wept as prodded to S. boos.`'
Ljtio Other aenexpeadsbie property. - -lease
Other aooespendable tangible personal prop -
erty is au/silted by , 0 recipient with project
funds. title shall not be taken by the Pee-
era' Government but shall vest In the re-
cipient subject to the following eeodittoas:
a. *v itt to frontier rifle. -For hums of
nonespendabie personal property having a
unit aequitition cost of 01,000 or more. the
Federal sponsoring agency say '0'- i! the
right to toss air the UM 10 the Psderal
•
NOTICES aza5
£re saws !f. Ito. A-110
irsonsere atawsca'crurr OrADaea•re
1. Tisk attachment preaertbes stations
standarda governing management of prop -
w ty furnished by the federal Oomament or
whose poet mu charged to a project owe-
monad by s Federal grant or other agreement.
federal aponeoriag agencies shall require re-
aiplenL to observe these standards seder
;rests and ether s;reeaunU and shall rot
impose additional requirements unless ape-
allkaily requited by Federal las. 27se recipi-
ent easy use its own property manegenient
ataadards and procedure' provided it observes
the provisions of this attachment. Tbu at-
tacament also applies to subreciplsats s
(referred to In paragraph $ of the baste elr
solar.
S. The following det>attioae apply for the
;purpose of this attachment:
b teat property --Neal property paeans
had, Melodist( lead improvements, struc-
tures and appurtenances thereto. but ere-
eluding movable 'Dscbtaery and equipment.
h. Personal poperty.— Personal property
el nay tied eseept real property. it rosy be
tangible — having phyaleal existence. or lnta-
sibie— having so pbytteal •eisteaee. such as
patents, beventba' and copyrights.
e yfowcspeodabie persona: properly.—Mon-
expendable personal property 'Deans tangible
personal ptoPerty baying • tteeful Die .t
more time co. year and en yle/U*0 cost
Of P00 or more per unit SLAW twat recip-
ients subject to Oast Aeoouating etaoducir
!card regulations may use the CAt12 stand-
ard of 000 per wait sad useful life of two
Tears . A recipient ausy use iL own definition
of eoneepeadabls personal property provided
that the definition would at but include all
tangible persona! property m defined shove.
el.:spendable peraonaT property.— I:speod-
able personal property refers to all tangible
personal property other than aooupeadable
/property.
o. tweet poFerty. Zetees property means
property wader the control of any Federal
agency that, as determtaed by the head
thereof, U ao .longer required for IL needs
et the discharge of lta reepoa1tbilltW.
L Acquisition east of purchased lionss-
pendeble personal property.- Requbsitice cast
Of an item of purchased oonupendable per -
sonal property 'Desna the net invoice unit
pries of the property tnetudlag the eat of
modifications. attachments, accessories. at
auxiliary apparatus neceaaary to mate the
property usable for the purpose for which it
wail acquired. Other charges suet as the east
of Installation, transportation, taus, duty
Or protective la- transit insurance, •hail he
Included-or excluded from the unit acquisi-
tion cost to occordance with the recipient's
tejutat accounting practiced.
g. iuempt property.- elsempt property
oteana tangible personal property acquired in
whole or in 'put with redrrai funds, and
MU to which b vested In the recipient with-
out further obligation to the Federal Govern-
Mont sacept as provided in subparagraph la
below. Such uoconditlonal vesting of title
wnl be pursuant to any Tederai iegtatation
that provides the Federal sponsoring •gene,
Witt .de uate authority
eelpproperty. -Lech Federal sponsor
y shall prescribe requirement
etpie concerning the um and
of real •arty acquired par
under gran other
otherwise prow
menu, as a eain
!afrosi u► to property
Dseiplvnt Not to the Bondi
metro shell use the real proper.
• • *Seed purpose of the project, as 10
is needed.
b. The recipient shall obtain approval
Peelers/ sponsoring agency for the ose
property to other projects whet the
nt dt•termisce that the p
to er needed for the purpose d
pro t. tree to otber projects shall
to th under other federally
poets ( ., grants or other agreements)
grams • at have purposes
those a herbed for support by
sponsor ageaey.
e. Wise the real property
Deeded as • Tided is a and
recipient . 1 request di
Uo from Federal
its tueeeaaor •era' apo
Federal epos
following rules
bone:
(1) The rseipe
tato title attar 11
Government to so
plying the Federal
trots to the Dort of
fair market tales
(i) The neciplen
the property used
the Federal •po
Psserat Oorsr• ••
by applying tb
tictpstloa to -•
to the pave
actual and
peers, t!
When the .
to sell th .
shall be
Dion to
the pit pout
(1) P
ft: ti
tin
re
e
hiteDt7
the t
t may
- -m
CO
0
ring
nt as
Federal
Rost of
from
nab!.
7, from
eipient is a
roperty,
bushed that
r latent prat
eat possible return.
• reef lent easy he dtrected
e to the property to the Fed
at provided that to nth
lent -
tent shall be entitled to`eompe
puted by applying the rseepleat's
tags of participation to the cost of
otram or project to the current fear mart
slue of the ..
property
the nal
he = - teed
ppro-
t with
Federal
Do longer
on tastrve j '
NI Mimi__
rtr�''�
g ageoe,. Tee
all observe the
ttoa gastric-
permitted to vo-
tes the Pedersi
t computed by ap-
atage of partidpa-
• 'set M the
be directed to sett
Hoes provided by
Dry r� say ttae
aunt aompnted
tags of par -
tJsa peal prone!
NJ* ( ter deducting
stung • d na -up es-
tae sat proceeds)
authorise or requted
proper eater
LUIS
provide !• camped-
Jeabh and t tfa
WILDS-
Gee-
the
oa
r-
e
4setoathird party awned by
the Tderal Government when such third
party _ta otherwise edtgible under eluting
statutes Such imervatios Mall be subject to
Ms following standards:
(1) The property shall be appropriately
/daatt>ied ta Os groat er other agreement
Or otherwise MOOD* Itabsa to the reetplest
r venter
I) The Federal 1poosoriag agency sash
aiRae dt.pemtioa iaftnsetions within 120 cat-
endar days at ibis red a< tae Tsderal sup-
ppoorrtt er the project tae shies it sae aognired
II the federal !melamine &gene? fails to issue
W21t1oa taslroetiQp+ within the 0 sal-
day perio4 ito recipient tdsa2l apply
the standards e( sabpar•gr•pbs R and tie
r(6 ) Whet the federal Mobrotiag scene?
eaardlsa Its rtgbt to take ilttie, tae persoaai
property shall be subject 1* the provisions
per fsdratly♦waed aoompendabie property
dlmeassd is paragraph a. Mures.
iit) When title le trsmetse»d Other to the
2lbdert1 diovsrst>sat er to third party tbs
pa followed.
le. se►sparagr pb g•(11)(b) Mould
if Du of ether impale *entspenLsbte
property for Witch tae reelpHat has elite.
(I) '='be redpteot shall tray the property
tae project or program toe Mitch it was
acquired as loaf as beaded. whether er Dot
the project or prowl= continuo to be sup-
ported by Fvdert3 funds. Whoa ` so longer
bea01d tar the original pro7ect or program.
the recipient shall tore the property to son -
aoetiot with Its other tederaily sponsored
activi ties. in the following order of priority :
(a) Activities, is 12st lesiowtng girder rs of
(b) Activities sponsored b l'Petters!
(2) th pad use.- Diving the time that
noosaempt sote:peodabie personal proper-
ty Is held for me on the project or program
ter which ti was acquired. the roelptent
shall mate it available for use on other proj-
ects or programs of such ether Ise writ not
tatertre with the wart s5 the project or
program fee *islet the property was oriet-
naily acquired. first prateranes for mesh
ewer use shall be ghee to ether prrojede or
procreate sponsored by the federal agency
that nnancsd the property: mooted prefer -
mos shall be given to projects or programs
sponsored by other !federal ageoetss. If the
property r *woad by the federal Ootsra-
ment, tae so ?thee activities not sponsored
by the federal Government shall be per-
missible tit authorised by the Federal agency.
peer dunes should be oomidered If appro-
priate.
s. DtspoettIlow of other wcntspendebie
typo wbea the recipient so longer
seeds Property as provided to lib above.
the property Dray M eased toe ether aetivi-
pea In aocordanae with the following stand -
e1Tda
(1) leoaesprwdabie property with a suit
eegvtatties coat of ka thaw !INC : The n-
clpteat may um the property for other activi-
ties without reimbursement to the federal
Ooverneneat or earl tae property sad ve-
tain theprocesds.
(6) Wonespendabke persons: prOterty with
a watt •rgvtstttoO mot of it.00 er wore.—
The recipient nay retain the property for
ether *sea provided that compensation 1s
shade to the original federal sponsoring
sconce or its suoeeaaor. The saeuat of tom•
ppteoasssstson shell be sneeputed by ;applying
1hs percentage of Federal participation to
the cost of the original project or program to
the current fair s artist value of the property
If the recipient btu no teed for the property
and the property tune further me value, toe
recipient snail request disposition tnstruc-
tions trope the original sponsoring agency.
re-
altion
or wbo11y
menu. Weir
U. such require-
shalt contain the
vest to tae
that the
r the
et
FINIAL REGe1TEt, VOL 41, NO. Its —MAT. AIL! et. 1176
.11. Modified — Per language in Uniform Administrative
Requirements section of Grant Agreement.
PAGE 8 of 10
•
The Plediersi sponsoring e#eaey shalt deter -
tatns whether the property tan be teed to
Sleet the agency* pequtrsaants. tf as te-
fgulrsment nets within List agency, the
availability of the property than be report-
ed to the Dsneral Serriese Ali mtatinrauon
h the Peelers! agency to determine whether a
soquireasent for the property exists to other
'Federal stenches. The ?Wend sponsoring
• wary ha too shall than 11 O days aaffterr the �pt-
entt'• request sad the following procedure
*all govern :
(s) If so hertrvet*d or ff eebpostUon to-
Mtr cUone are sot issued within tie Wes-
Oar days after the recipient* request, the
$ecipleat dhd1 sell the property and nem-
h m Use Federal sponsoring stoney an
stmount eompuad by applying to the safes
rocesde the percentage of Aderal peen-
potion to the frost of tb. original project or
program. however, the recipient shall he
pernettad to deduct and retails from the Ped-
ant share 4100 of On prevent of the pro -
meds, whichever is greater, for the recipient's
MUM* and handless lupines.
(b) 11 the recipient is instructed 10 drip
She property elsewhere. the recipient shall
he reimbursed by the benefiting Federal
agency with an amount which is eompuad
to applying the percentags Of the tenpteat's
partlefpstloa to the cost of the original grant
project or program to the current fair market
value of the property, plus shy reasonable
shipping or Interim storage eats Ineured.
(c) If the recipient is instructed to other -
wise Capon of tb• property. the reetplent
shall be reimbursed by the ledersl sponsor-
ing agency for ouch mate !scarred In Its
1bp� Uoa.
?ripe tt ' forest nnehf' aini•iii he
li0+tefyrralserW 'b pipette -Tbe toelpient s
property asaaaeeateat Winded. tot stonex-
Bpoendabte personal property shall *Delude tae
bnowtag procedural requirement*);
(l) property records shall be maintained
serew*teiy and shall Delude:
(a) A MeedpUOt of the property.
b 1laout etwirs *arid cumber, model
avmbit% Peters! stock number, national
slack ■umber, sr Other 1denUSe4Uoa srem-
1ss,
(1) Some of Yet property, Ibetadiat
grant or other agreement somber.
(d) 'nether title seete to the recipient e•
the Peelers] Oovernmeat
p) Acquisition dam (et Sits teethed, If
the property eh furnished be the ?decal
Government) aid abet.
(f) Percentage (It the and of the budget
pear) of Federal participation In the cost of
the project of program for which the prop-
erty ova• beguiled. (foot typhoon!. to prop-
erty turnli11ed by the Peelers] tbovernment.)
(g) Location, vac and bondlUoo *f theo
property and tae date the information has
reported. ( ett aequiett6a cost.
(1) Vltimete dispoettioa data, twitting
date of disposal food sate price or the method
weed to determine eurrent fair market nitre
when a recipient bompeteatee the !orders,
sponsoring agency is its altars
(1) Property timed by the Federal Dos -
tenement must le marked to tadleate ?W-
irral ownership.
(1) A physical *twittery of property Glatt
16 taken and the results reopened with the
property records at least once every two
lean. Any differentia between quantities de-
termined by the 'Metal Inspection ` and
those shown to the accounting roterde that
bs investigated to determine the thugs of
the dttfsrence.'fhe *eelplent shalt, la thane-
lion with the lnv•atbry, verify Use blbtenee,
current utilisation. and Bentsrued seed for
the property.
(4) A control imam shall be In effect fit
!four. adequate safeguards to prevent lore.
NOTICES
damage. se then of the property. day lost
damage. or theft of :saes actable property
gall be tnve.tigatsd and fatly documented:
V the property was mired by the Faders]
Ooternaaent. the recipient shall promptly so-
thy the Pedenl sparsortag agency. /ide'v
(4) adegnert.ey tsaatna *ants procedure
shall be *mpl.meotsd to keep the property
la good eo**itiea.
(4)
Where the reetpisnt it svtboriasd or
wqutred to son the property, proper halos
procedures 'boil be eetabibh•d which would
provide for oorapeUtloo to t*e *that peseti-
tlable had rum/ to the htgbeet passible sir
irpendaeh persosat prope►tp. -T1w 10
-expendable personal property shah vest In
the recipient spun acquisition. 1r there is a
pesldud Investor, of sues property exceeding
41000 In tote segregate fair market vahrs,
upon terminates or sompletioo of the grant
et other agrsemsat. and the property is sot
hooded for any Other 'federally eponeored
limpet or program, the recipient shall retain
the property tot she am soaf*deralty spew'
soled aetiviU0, sr sell it, but smart In either
are, compensate the ?Wail Government
for its share. The amount of compensation
shall be computed ia the same manna as
aeneapendabie perional property.
4. tatenotbie property.
i tnoeutlo+u and patents.- ,ttsay program
produces patentable items. patent rights,
preemies. se Inventions. to the soarer of
wort sponsored by the Federal Dovernmeot,
sorb fart shall be promptly and luny report-
ed to the Psderal sponsoring agency. Val=
there b a prior agreement between the re-
cipient and the Federal sponsoring agency
e* ,disposition et ruses .Items, the Pederai
sponsoring agency shalt dearmtae whether
protegees to the Invention or discovery shall
be sought. The Federal sponsoring agency
will also d•termtae bow the rights to the in-
vention or *seamy- including rights under
any patent terued thereon abaIl be allocated
had sdmlatstersd it ardor to protect thspab-
Me Interest eoaabtent with *Government
Patent Policy" (President's ltemoesaduen
for heads of ltauttve Departments and
Agencies, August t1, *inn. and'taaatat of
Government Patent Policy ma printed 10 44
P.Ft. Jigs). _ •
b. Copyrithe.—Ifacept as otherwise pro-
vided tie the terms and soadltioas of the
agr.eateat, tbe author or the recipient organ -
bisect is tree to copyright any books, pub-
bastions, or ether copyrigbtable asaterials
developed la the course of or under it ?W-
eal agreement, but the Federal *powering
agency *halt resent a royalty -free, abss:-
chaise and Irrevocable tight to reproduce,
publish, err otberwbe use, and to sutborlr
otters to era the work for Government pur-
poses.
Arraceses er 0.- Cram as Do. £-110
waoetsatntSWI ersresaU$
teethe lamer sehlog te u
assured tato. rapport el a groat et other
agreement. This Include dbputsa, shims,
pis of sword, wares eratuation of other
tatters of a eoetraetoat mature. hatters eea-
shesrntait viotatiee at he ars to be referred to
Math heal, Sists or Federal authority as may
s
Illoolptstits ahly mu thelt *.* procurs-
1 eent policies tad prosedures. ttoweser, all re-
taphole slat! ethers to vas Inebdarlb est
f*eti to )lilt $ had 4.
w Theft than matatata a mess or
etsedarde of statute that shalt govern the
pe1ormmanee o[ ate aiwrs, employer oc
agents tretee * la the swsrdiag and sQmta-
titration of eoatraole thing Federal toads .
llo eneploye.eteer or agent shall participate
h the selection, award co admlafttrstloa of
a *attract to which Panders] fuade are led
Where, to big knowledge. he et his la nsedtate
trolly. ppaarrttnaere, or organisation In which be
er his t. iirdiate tRmlly se partner he a
!t'aadal !starlet et with whew he Is solo-
teethe, sr hi any artaagement conoorntre
eer to amployseot The r*tapienta' *f-
l employee or agents shall Mather falle-
n air accept rebirths, Savors or anything
et monetary value fries eontraetore co potsn-
tiial'contraetors. Such standards a*all provide
tor disciplinary setione to be spirted for vio-
lations of Loeb standards by the letaptent0'
etieera, employees se egrets.
b. An proeunament transaction. obeli be
* es *acted In a manner to provide, to he
ial&IIMUIII attest practical, open and fess
eamPe *tire. The recipient should be alert
to organisational conflicts et lateen or act -
eompeUtive
that may notelet ~0 iA�eapeti on
it otte.erhlse portrait trade. In seder to sn•
Mare objective aontractar performatm and
stimloate unfair competitive sdvaatage, eoo-
tractors that develop or draft spectneatioas,
osquireount0, etatrments of weak, tents-
Wong fa bets aad /ar requests for props alt
*them* be a*etud•d` from eoerpeting far from
pprroxeuretaeo1. Awards sisal be made to the
Mddes%offeror whose bid/offer b tsegroualse
ills the enlleitateon sod 10 moot advantageous
to the recipient, prim end other teen see -
$derod. Solicitations mail hearty lot 01n
all requlrtenseate that the bidder /offeror mast
bean to seder far his bid /Offer to be evalu-
ated`by he reetp7at Any and all bi stofere
Why be rejeet d whoa It b to the reclpuat'e
ttsaran to do so,
e. Al! esclpteots *sari setablish rimers -
tment prooebtt»s that provide for, at a sea-
Saturn. the following procedural requirement
(1) tropos.d procurement actions shall
fallow a procedure to bsure the avoidance
dot purchasing tmnesseaarl er dupitate..
gtesis. Where approprtaa, an anatyate shall
be made of lea. s and purchase. altrnettives
So determine shtem ' would be he most
economical, practical procurement.
(1) SotictlaUons is good. and services
*halt be based upon a clear and accurst.
description of the ethnical require:netts
fee the material, product or eenlor to be
pros shred. Ouch a description shall aot, *a
*tenpet7Uvs procurement,,' sonata feature.
Wait* unduly restrict soc►peetton. '-'Brand
Must er equal" desertp*oas may be lased
*vs means to dense the performer*. or
other salient requtrernent of procurement.
and when OD hoed tae operate festive et the
mimed irrsnd watch must be net by bidders/
Offerors shalt be dwelt specified.
(4) Positive efforts shall be made by the
tvctptents to utilise small lousiness alas mi-
aorityowned truelove aouress of euppitn
and eernes. Ceti *Sorts should allow these
Correia the maximum feasible opportunity
b soenpek for 000tsaeta VUitalag Pederel
farads.
(4) the type of procuring instruments
wed, e;.. Sited price soot/seta, sort rase-
1. Thb attachment provides rtandards for
use by recipient to estebltshiag procedures
for the procurement of supplies, equipment,
construction and other services with Poderal
funds. These standards are furalabed t* as-
sure that such material and services acs ob-
tained in an effective manner and Is KM.
phones with the provisions of applicable fed-
eral he and u.eutt.e order: Ito additional
procurement standards or requirements slaty
be Imposed by the !Federal sponsoring agea-
etas upon yeetplents un)ees specifically re-
quired by Federal statute or executive orders.
t. The standard. contained 1n this attach-
ment do tot relieve the recipient of the'soa-
eractuat responsibilities arising wader its
contract.. The recipient b the mponalb)s au-
thority, without recounts to the !Wend spon-
soring agency regarding the settlement aid
astteractien of all sontractus] had admirb.
MD1*at 19Otffgl. VOL 11, 110. 1411—P1IOAr, ART S4, and
.A- Modified — Per language in Uniform Administrative
Requirements section of Grant Agreement.
PAGE 9 of 10
bumble contracts, purchaas orders, loesa-
ri» °ontraeb, shall be determined by the
ieciptent but must be appevpriate ter the
particular procurement and for promoting
the bast interest of the program tsvotvsd.
'tea ' bat -pi us- a prom tags of-oast" moth -
N of contracting shall sot to tend.
(3) Contracts shill be made Doty with ro-
sponsibls eontraetars who poem= the po-
t7entional ability to perform suncomfvlly
tinder to toms sad Denditicae of e
pro-
posed procurement. Cbnsideratloo shall be
siren 30 such matters as contractor Integrity,
record et past performance, Inancial and
technical vsaourese or aeceaatbdlity to other
a someary resources.
(3) All proposed role source tontasets or
where Maly one bid re proposal 1s received
M which the egtlrieste eipeaditrire M es-
pitted to ironed $&000 shall be aubj ct So
prior approval at the disrithem e< gas ?ed-
eesl warmth( agency.
(7) Sege form of prier of met eaatysls
should be shade !a ooaneetion with men
procurement action. Price aa►lysia easy be
axomptiahed in various ways, tndudsng the
ooenpartaoa of pries quotations subentttsd,
ierarket priors and similar iodide, together
With discounts. Oast analysis te the review
and evaluation of lach element of soft io
determine ramonahleouea, ari0cabtltty and
efiowabuuy,
(3) Procurement record red flier for pur-
a3t$M to wears of 310.000 shall Include the
f°li Ang
(a) Arils for contractor selection:
(b) Justification for lack of competition
when competitive beds or oilers are hot
(e) Seals to award cost or prom.
(4) A system for contract adroitlatesUon
shall be nsalntalned to ensure 0ontraetor
aonformanee with terms. conditions and
spect0cattons of Use contract, and to ensure
adequate anti timely ldiorwup of all pur-
°bases.
•. Met recipient shalt heetude, to addition
to provisions to define a sound and Complete
• agreement, the following provision is all
aontraets. These provisions atoll also be ap-
plied tosu been beets.
a. Contract. in isms of 310.000 shall eon.
fain eoatrsetuat provisions or coadluons
that will allow for adminiatrsurs, contrac-
tual or legal remedies to hairnets fa which
sontractor• violet* or breach ooatrect terms,
and provide for such remedial salons u
may be appropriate.
b. A11 contracts la eseevs of 310,000 shah
sontatn suitable prvvsslons ter termination
by the recipient tocludinf the Banner by
which termttnruoa KIl ne enacted and the
bast. for sottleasent In odditton, snob con-
tracts shall describe conditions under which
Six contract nay be tenalnatad tear Ofault
SC writ es conditions where the seats t may
be ta•mtoated b•aaaase of circumstances W-
iped the s otrel of the eaatraelear.
a 2a all aoetracts tar ooastru taon or U-
tility tasprv*emsat sward.d to mores than
0100, 000. rectpienta char oberse the evad-
ing requirements prorated 3. Attachment !
4 this cheater.
d. All eeatreen awarded W roc pteou sad
their sontraetors ass eutgeaatw 1r'tag a
Wu* of more than 313.000. deatf soatats a
oc !squiring eomptianee with Sum -
ss Order 11)4L, entitled "Squat impioy-
aaent Opportunity." as ameadsd by =taeuuve
Order 11175, and as suppletsentad to Depart -
asrnt d Labor regulations (11 CPA, Part 00) .
1. Al! cootracta oat outspent' in snores et
fit.000 for 0oastruettoo or repair awarded by
recipients and subrvctpterate shall include a
provision for compliance with tbs Cbpelsad
'Asti -Wet lack' AM (13 17.11..C, 1114) as
svpplemestsd be Department elf -Labor
regulations (43 CPL Part 3). This Act pro-
vides that each contractor sr setgrantse
strati be prohibited from Ioduetag. by any
Means, any perms employed 1a the construe-
lion, completion, or repair of public week. to
glee up any part Mt the •ompeasatbe to
'bleb he 1s otherwise entitled. The recipient
shall report all suspected rte reported viols-
bons to the ?sclera! veneering agency.
1. When required by the Peden! progr.m
legislation. all eonstrvetlon =Directs
awarded by the reetpleata and subredptento
of more than 32,000 shall include a provision
for compliance with tbs Davia•Sacon Art (40
V.S.C. 373* to a-7) and as supplemented by
Department of Labor mulattoes (43 CPA,
Part 3). Cadet tMs Act contractors ahali be
required to pay wars to Laborers acid an-
ebonies at a rate not Mu than the minisoum
wages smelted he a wage determination made
by the Secretary of Labor. in addition. soD-
trsetors abaft be required to pay warms not
kw than once s week. The recipient shall
rises • Dopy of the current prevailing wars
determtnattoa Mimed by the Department of
Labor in with sollet1tion and the award
sf s contract shat! be conditioned upon the
seeeptatece of the wage determination. The
recipient shall report all suspected or re-
ported violations to the ?bderal spoasor(ar
n W'
g. Where applicable. all contracts awarded
by recipients In raring of 32.000 for construc-
tion contracts and in *roars of 32.500 ter
ether contracts that involve the employment
of mechanics or laborers, shall include • pro-
vision for compliance with sections 103 sad
107 of She Contract Wort Sours land Safety
Standards Aet (40 C.SC. *27-330) as sup-
plemented by Departenco3 of Labor rsgula-
i1ZO37
teems (W MIL Part 3), Coder motion 103
tit the let, each staatractor ,ball M re-
So sompute the sates d every aaa-
4hab.0 and laborer w the basis of • standard
Writ lay d i bows and a standard work
beak W e0 Dears. Ware la meow of the
standard workday or wartwslis permissible
peovtdsd that the worker Y sompermated at a
Mite Mt sot 5tas Vasa I% rimes ifs basic
tufa et bows pay it kr all boles worked to assess
say taltadar day er 40 Doors
• the workweek. fsettos 137 of the Let Is
apptielabk M sanafaxedoe wort sad provides
that so laborer re sembeaieshall be required
Is woes is senwosadiap or reader working
soodttiana which ars saoanitery, hasardoue
or dangerous to Dos health and moiety as de-
termined under *oertruetioa enrsty and
bealth ataadsrda prtmalgst.d by the here.
Very at Labor. Thee reeeqqulremsata do not
Mph
to the purchase it supplies or outs -
tia2s or'*rtieles erdisartly available oil the
open teartek or costreets tar traasportatioa
• treawaledot et Leteltt/enas.
L Ooetraeta at emmata. the prinetpat
purpose d,vhieb is to create. develop or im-
prove products, proeeares or methods, or for
esptorsrien tato SMAda that Cliraethy genera
public Deatth, safety or voltam; or °attracts
la the field of science or technology in which
thews bra been tittle significant srperitaa
eattide at went fooled by Federal assist -
awe, sisal! *Detain a notice to the effect that
Matters regarding debts io inventions and
leaterials tenerated trade the eentraet or
agreement are subject to the rt(ttlttione M-
imed by the Federal sponsoring agency sad
the recipient. The eoetrsctor shall M sd-
wired as to the source of additional informs.
titre regarding theme matters.
L All D.gvitated contracts (ss°rpt thaw
at 110.000 or Iwo) awarded by recipients
saa11 include • provision to the effect that
the recipient, the Patera! speororla3 ageney,
1Da O!omptrotier Omura! at the Vatted Sutra.
se any at their duly authorised repreenta-
rives. shall Dave atom to say books, docu-
ments. pepe?s and records of the contractor
which are directly pertinent to a specific pro-
gram for the purpose et snaklna svdtli.
othentnatfona, excerpts and transcription.
J. Cwotreeta and rubgrztrtr of amount& in
rhos of 4100,000 shall metals • provision
that rr qutr the recipient to arm to com-
ply applicable statedarda, orders or
regulations issued pursuant to the Clean Air
Aet of 1370 (42 C*.C. 1537 st seq.) and the
federal Water Pollution Cbotrol het (et
VA C. 1451 et seq.) er ameade4. Violations
*ball be reported to the federal sponsoring
weary sad the Regional QOM of the Da-
lbonmeatal ?refection Agency.
ITS Doc.71. -21304 Piled 7- 1110- 7*J:ti am)
PAGE 10 of 10
57o.e11 Conflict of Interest
(a) Applicability. (1) In the
procurement of supplies, equipment,
construction, and services by recipients,
and by subrecipients (including those
-apecif ed at 570.204(c)), the conflict of
interest provisions in Attachment 0 of
OMB Circulars A-102; and A -110,
respectively, shall apply. '
(2) In all cases not governed by •
Attachment 0 of the OMB Circulars, the
provisions of this section shall apply.
Such cases include the acquisition and
disposition of real property and the
provision of assistance by the recipient.
by its subrecipient:, or to individuals,
businesses and other private entities
wader eligible activities which authorize ,
each assistance (e.g., rehabilitation.
preservation. and other improvements of
private properties or facilities pursuant
• to 1 570.202, or grants, loans and other
aiaistance to businesses, individuals
and other private entities pursuant to
11 570.203, 570204 or 570.455).
(b) Conflicts prohibited. Except for
-approved eligible administrative or
personnel costs, the general rule is that
no persons described in paragraph (c) of
this section who exercise or have
exercised any functions or
'responsibilities with respect to CDBG
activities assisted under this Part or who
are in a position to participate in a
dedsionmaking process or gain inside
information with regard to such
activities, may obtain a personal or
financial interest or benefit from the
activity, or have an interest in any
contract, subcontract or agreement with
respect thereto, or the proceeds
thereunder, either for themselves or
those with whom they have family or .
business ties, during their tenure or for
one year thereafter. For the UDAG
program, the above restrictions shall
apply to all activities that are a part of
the UDAG project. and shall cover any
such interest or benefit during, or at any
time after; such person's tenure.
(c) Person, covered The conflict of
• iinterest provisions of paragraph (b) of
this section apply to any person who is
an employee, agent. consultant; officer.
or elected official or appointed official
of the recipient. or of any designated
public agencies, or subrecipients under
1 570204, which are receiving funds
ender this part.
(d) Exceptions: threshold
requirements. Upon the written request
of the recipient. HUD may grant an
EXHIEIT 3
exception to the provisions of paragraph
(b) of this section on a case -by -case
basis when it determines that such an
exception will serve to further the
purposes of the Act and the effective
and efficient administration of the
recipient's program or project An --
exception may be considered only after
the recipient has provided the following:
(1) A disclosure of the nature of the
conflict, accompanied by an assurance
that there has been public disclosure of
the conflict and a description of how the
public disclosure was made; and
(2) An opinion of the recipient's
attorney that the interest for which the
exception is sought would not violate
State or local law.
(e) Factors to be considered for
exceptions. le determining whether to
grant a requested exception after the
recipient has satisfactorily met the
requirements of paragraph (d) of this
section. HUD shall consider the
cumulative effect of the following
factors, where applicable:
(1) Whether the exception would
provide a significant cost benefit or an
essential degree of expertise to the
program or project which would
otherwise not be available;
(2) Whether an opportunity was
provided for open competitive'bidding
or negotiation;
(3) Whether the person affected is a
member of a group or class or low or
moderate income persons intended to be
the beneficiaries of the assisted activity,
and the exception will permit such
person to receive generally the same
interests or benefits u are being made
available or provided to the group or
class;
(4) Whether the affected person has
withdrawn from his or her functions or
responsibilities, or the decisionmaking
process with respect to the specific
assisted activity is question;
(5) Whether the interest or benefit
was present before the affected person
was in a position as described in
paragraph (b) of this section;
(5) Whether undue hardship will
result either to the recipient or the
person affected when weighed against
the public interest served by avoiding
the prohibited conflict~ and
(7) Any other relevant considerations.
The above is an extract from the Community Development Block Grant Rules and
• Regulations. A complete set of the rules is available for review and constiitatior,
at the City of Alameda Community Development Department,
HOUSING at DEVELOPMENT REPORTER
6 570.101 this. L 03-352 and Pub. L 00-
354,, Executive Order 11013.
Section I04(b) of the Act provides that
any grant under section 106 of the Act .•
shall be made only if the grantee .
certifies to the satisfaction of the
Secretary that the grant "will be .
conducted and administered in
conformity with Pub. L 0-352 and Pub.
L 90 -214." Similarly, •ecUon 107
provides that no grant may be made
EXHIBIT 4
tinder that aectioa (S.Q.tarY's
Discretionary Pund) or aectioa 119
(UbAG) without satisfactory assurances
td the same effect.
* ta) "Pub. LIMI-322" niers to Tide VI
he civil R i g h t s Act of 1904 (42 U C.
2000d et see.). which provides that no
person in the United States ahaf ma the
ground of recd, color, br national origin,
be excluded from partidpation ia, be
denied the benefits of, or bi Subjected to
discrimination ender any piogrant or
activity reosivtog Federal finaacfal
assistance. Section 802 of the Civil
!Rights Act of 1964 directs each Federal
department and agency empowered to
extend Federal Manciat assistance to
any program or activity by way of grant
to effectuate the foregoing pohibition
by issuing rules, regulations. or orders of
general applicability which shall be
consistent with achievement of the
statute authorizing the Spandril
assistance. HUD teguiationi
implementing the requirements of Title
VI with respect to HUD programa are
contained in 24 Mt Part 1.
(b) "Pub. L 00 -284" refers to Title VIII
of the Civil Rights Act of 1966 (42 U.S.C.
not et aeq.), popularly known as the
Fair Housing Act. which provide.. that it
b the policy of the United States to
provide, within constitutional
limitations, for fair housing throughout
the United States and prohibits any
Person from discriminating in the sale or
rental of housing, the financing of
housing. or the provision of brokerage
services. including in any way making
anavaiiab kor denying a dwelling to
any persocause of race. color.
jeift��on sex, or national origm.Titfe
VIII further requires the Secretary to
administer the programs and activities
relating to housing and urban
development inj manner affirmatively
to further the purposes of Title VIII.
Pursuant to this statutory direction. the
Secretary requires that grantees
administer all program and activities
•
* 1988 amendments add the classes of handicap and familial status.
COMMUNITY DEVELQYMENT BLOCK WWtAi J
related to housing and community regulations of this Part only apply
development in a manner to directly or through contractual or other .
arrangements, on the ground of race,
affirmatively Executive further fair housing. color, national origin, or sex:
(c) Executive Order 11003, 12259. (1) Deoy any facilities, services,
amended by Executive Order 12259. (1
directs the Department to take all action financial aid o tther benti provided
necessary and appropriate to prevent order the program
u ii) provide any facilities. services,
discrimination because of race. weor,
religion (creed). sex, or national origin.
in the sale, leasing. rental, or other
disposition of residential property and
related facilities (including land to be
developed for residential use), or in the
use or occupancy thereof, if such
property and related facilities are,
among other things, provided in whole
advances, t gra ts, or contributions '
geed to grants, of an advantage or
agreed to be made by the Federal in the enjoyment Y
Government. HUD regulations pritiilege enjoyed by others in
implementing Executive Order 11003 are connection with facilities, services.
contained in 24 CFR Part 107• financial aid or other benefits under the
• program or activity.
f 370.602 Section 101 of the Act. (v) Treat an individual differently
(a) Section 109 of the Act requires that from others in determining whether the
satisfies any admission,
no the person ground m the United States shoo origin enrollment. eligibility, membership, or
the grou of ace. color, national origin
sex, be excluded from participation • other requirement or conditions do be
(
financial aid or other ben f it s which
fference
different, or are provided
form from that provided to others under
the program or activity.
Iiii) Subject to segregated or separate
treatment in any facility in, or in any
matter of process related to receipt of
any service or benefit under the program
or activity. access to, or
(iv) Restrict in any way
09:0661
HDR RF -253
10 -17 -83
EXHIBIT 4
ground of ace. Dolor• national origin, rl infect
sex; or which have the purpose
defeating of substantially Impairing
the accornplishmenTof the objectives of
the Act and of this section.
(4)(i) In administering a program or
activity funded in whole or in part with
CDBG funds regarding which the
recipient has previously discriminated
of race,
against persona an the ground
national origin or sex. the
recipient must take affirmative action to
overcome the effects of prior
discrimination.
(11) Even in the absence of such prior
discrimination. a recipient in
administering a program part a CDBG
funded in whole or in pa
funds should take affirmative action to
overcome the effects of conditions
which would otherwise result in limiting
participation by persons of a particular
race, color, national origin or sex.
Where previous discriminatory practice
or usage tends. on the ground of race.
color. national origin or sex, to exclude
Individuals from participation in. to
deny them the benefits of. or to subject
them to discrimination under any
or
in, be denied the benefits of, or be the individual must rope order or activity to which ihis par
subjected to discrimination under. any pro vided any facilities. services or other program oies, the Tecipty t has an obligation
program or activity funded in whole or benefit provided under the program or to applies,
a reasonable action to obligation
or
in pert with community development activity. opportunity to articipote overcome the consequences of the prior
funds made available pursuant to the (vi) Ueny an opt Y p discriminatory practice or usage, end to
Art. For purposes of this section in a program or activity as an employee• sc of the usage,
"program or activity" is defined as any (2) A recipient may not utilize criteria accomplish t,ept purpose
not be Aohibited
function conducted by an identifiable of methods of administration which (iii)
administrative unit of the recipient. or have the effect of subjecting individuals by this part from taking any action
to discrimination on the basis of race, eligible under Subpart C to ameliorate
by any unit contractor receiving aubredpient, area ti
or private contractor receiving color, national origin, or sex, or have the � vended to any geographic � facilities
community development funds or loans effect of defeating or substantially . specific group of persona are or
s
from the recipient. "Funded in whole or impairing accomplishment r activity sueci is group p of p the s within
of such
funds" part means s that community development objectives respect of to the of a action to to overcome prior
funds" means that community ` with respe i discriminatory practice or usage,
development funds in any amount in the particular race. Dolor. national origin' or (5) miest Notwithstanding anything o usag . the
corm guaranteed e wane or prove be from HUD hex.
by the rci hs subnppient to ant or(loctitirecipient. [ housing or facilities determining site container!, herein shall be construed to
by the recipient prohibit any recipient from maintaining
identifiable administrative unit and . provided in whole or in part with funds P y separate m facilities
disbursed in a program or activity. ender this part. may not make selections or constructing set living
(b) Speian discriminatory o iv oc actions � of site or excluding individuals have the or from.. sexes. facilities for
selectivity the ron the
prohibited Di A and corrective egix basis of sex is not prohibited when
(t) a recipient may sot, which the any denying them to discrimination on the stitutionat of custodial services can
program or activity to which the subjecting
Page 2 of 3
oureastteci by Moon, a t *met ale
HOUSING & DEVELOPMENT REPORTER
EXHIBIT 4
properly be performed only by a
member of the same sex as the
recipients or the services.
(r) Section 109 of the Act further
provides that any prohibition against
discrimination on the basis of age under
the Age Discriminatim Act of 1975 (42
U.C.C. 6101 et seq.) oMith respect to an
otherwise qualified handicapped
individual as provided in section 504 of
the Rehabilitation Act oi2973 (29 U.S.C.
7941 shall also apply to any program or
ar.tivity funded in whole or in part with
funds made available pursuant to the
Act.
:; 1988 amendments increase the scope of Section 504. Refer to Section 6.p.1) of the
Grant Agreement for more information.
Page 3 of 3
Exhibit 5
I $7o.O -- srin6srda.
Section 144(8 expresses the intent
that °the policies of the National
tovironmeatai Policy Act date and
other prodsions of law which farther
the purposes of such Act (as specified in
ser lions issued by the Secretary) .. .
INC moss effectively implemented in
sonnection with the axpeaditurs of
lends under" the Act. Such other
provisions of law which further the
put poses of the National Environmental
Policy Act of IMO are specified in
regulations inured pursuant to section
sat(l of the Act and contained to u
_ CFR Part IL Section !NM aLo
that. in lisp of the environment
peniection procedures otherwise
applicable, the Secretary may ender
segulations provide for the release of
fonds for particular projects to grantees
who assume all of the responsibilities
for environmental review.
ieef ioamaking. and action pursuant to
1be National Environmental Policy Act
eitaea, and the other provisions of law
opecifed by the Sectary u described
above. that would apply to the Secretary
were beisbe to undertake sods projects
.i Federal projects. Grantees swum
°
ouch environmental review.
iedsionmakirt& and action
responsibilities by reeeettioe of grant
agreements with the Semetary. The
procdures for carrying out ouch
environmental responsibilities see
asxttaoed is 14 CiR Part U.
The above is an extract from the Community Development Block Grant Hiles and
Regulations. A complete set of the rules is available for review and consultation
at the City of Alameda Community Development Department..
EXHIBIT 8
Page 1 of 1
THE HATCH ACT (5 CFR 151)
POLITICAL DO'S AND DON'TS...
An individual principally employed by a non - profit organization
financed in whole or in part by federal loans or grants:
• May be a candidate for public office in a
nonpartisan election
• May campaign for and hold elective office in
political clubs and organizations
• May actively campaign for candidates for
public office in partisan and nonpartisan
elections
• May contribute money to political
organizations or attend political fundraising
functions
• May participate in any activity not
specifically prohibited by law or
regulation
An election is partisan if any candidate for
an elective public office is running as a
representative of a political party whose
presidential candidate received electoral votes
at the preceding presidential election.
• May not be a candidate for public office in
a partisan election
• May not use official authority or influence
for the purpose of interfering with or
affecting the results of an election or a
nomination for office
• May not directly or indirectly coerce
contributions from subordinates in support
of a political party or candidate
INELIGIBLE ACTIVITIES. (24 CFR 570.207(A)(3))
(3) Political activities. CDBG funds
shall not be used to finance the use of
facilities or equipment for political pur-
poses or to engage in other partisan
political activities, such as candidate fo-
rums, voter transportation, or voter regis-
tration. However, a facility originally as-
sisted with CDBG funds may be used on
an incidental basis to hold political meet-
ings, candidate forums, or voter registra-
tion campaigns, provided that all parties
and organizations have access to the facili-
ty on an equal basis, and are assessed
equal rent or use charges, if any.
RELIGIOUS ACTIVITY
(j) Constitutional prohibition. In accor-
dance with First Amendment
Church /State Principles, as a general rule,
CDAG assistance may not be used for
religious activities or provided to primari-
ly religious entities for any activities,
including secular activities. The following
restrictions and limitations therefore apply
to the use of CDBG funds.
(1) CDBG funds may not be used for
the acquisition of property or the con-
struction or rehabilitation (including his-
toric preservation and removal of architec-
tural barriers) of structures to be used for
religious purposes or which will otherwise
promote religious interests. This limitation
Includes the acquisition of property for
ownership by primarily religious entities
and the construction or rehabilitation
(including historic preservation and re-
moval of architectural barriers) of struc-
tures owned by such entities (except as
permitted under paragraph (j)(2) of this
section with respect to rehabilitation and
under paragraph (j)(4) of this section with
respect to repairs undertaken in connec-
tion with public services) regardless of the
use to be made of the property or struc-
ture. Property owned by primarily reli-
gious entities may be acquired with
CDBG funds at no more than fair market
value for a non - religious use.
(2) CDBG funds may be used to rehabi-
litate buildings owned by primarily reli-
gious entities to be used for s wholly
secular purpose under the following condi-
tions:
(i) The building (or portion thereof)
that is to be improved with the CDBG
assistance has been leased to an existing or
newly established wholly secular entity
(which may be an entity established by the
religious entity);
(ii) The CDBG assistance is provided to
the lessee (and not the lessor) to make the
improvements;
(iii) The leased premises will be used
exclusively for secular purposes available
to persons regardless of religion;
(iv) The lease payments do not exceed
the fair market rent of the premises as
they were before the improvements are
made;
(v) The portion of the cost of any
improvements that also serve a non - leased
part of the building will be allocated to
and paid for by the lessor;
(vi) The lessor enters into a binding
agreement that unless the lessee, or a
qualified successor lessee, retains the use
of the leased premises for a wholly secular
purpose for at least the useful life of the
EXHIBIT 9
PAGE 1 of 1
(24 CFR 570.200(j))
improvements, the lessor will pay to the
lessee an amount equal to the residual
value of the improvements;
(vii) The lessee must remit the amount
received from the lessor under paragraph
(2)(vi) of this section to the recipient or
subrecipient from which the CDBG funds
were derived.
The lessee can also enter into a manage-
ment contract authorizing the lessor reli-
gious entity to use the building for its
intended secular purpose. a g., homeless
shelter, provision of public services. In
such case, the religious entity must agree
in the management contract to carry out
the secular purpose in a manner fire from
religious influences in accordance with the
principles set forth in paragraph QX3) of
this section.
(3) As a general rule, CDBG funds may
be used for eligible public services to be
provided through a primarily religious
entity, where the religious entity enters
into an agreement with the recipient or
subrecipient from which the CDBG funds
are derived that, in connection with the
provision of such services:
(i) it will not discriminate against any
employee or applicant for employment on
the basis of religion and will not limit
employment or give preference in employ-
ment to persons on the basis of religion;
(ii) It will not discriminate against any
person applying for such public services
on the basis of religion and will not limit
such services or give preference to persons
on the basis of religion;
(iii) It will provide no religious instruc-
tion or counseling, conduct no religious
worship or services, engage in no religious
proselytizing, and exert no other religious
influence in the provision of such public
services;
(iv) The portion of a facility used to
provide the public services shall contain
no religious symbols or decorations, other
than those permanently affixed to or part
of the structure.
(4) Where the public services provided
ender paragraph (j)(3) of this section are
carried out on property owned by the
primarily religious entity, CDBG funds
may also be used for minor repairs to such
property which are directly related to
carrying out the public services where the
cost constitutes in dollar terms only en
incidental portion of the CDBG expendi-
ture for the public services.