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HomeMy WebLinkAbout94-37 Resolution No. 94-37 RESOLUTION AUTHORIZING EXECUTION OF A SUBRECIPIENT AGREEMENT WITH THE CHANNING YMCA BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, that Robert 0. Malm, Interim City Manager, ' and Dolonna Mecum, City Clerk, be and are hereby authorized and directed to execute a Subrecipient Agreement on behalf of the City of Elgin with the Channing YMCA for the Positive After School Structure program, a copy of which is attached hereto and made a part hereof by reference. s/ Robert Gilliam Robert Gilliam, Mayor Pro Tem Presented: February 23, 1994 Adopted: February 23, 1994 Vote: Yeas 5 Nays 0 Attest: s/ Dolonna Mecum Dolonna Mecum, City Clerk • �n Agenda Item No. A ( 10) .14 U fl� February 18, 1994 TO: Mayor and Members of the City Council FROM: Robert O. Malm, Interim City Manager SUBJECT: Proposed Subrecipient Agreement Between the Channing YMCA and the City of Elgin PURPOSE To request approval of a subrecipient agreement between the City and the Channing YMCA. BACKGROUND In 1992 the City Council allocated Community Development Block Grant (CDBG) funds for the purchase of recreational and educational equipment in support of the Positive After School Structure (P.A.S.S. ) Program operated by the Channing YMCA. The attached subrecipient agreement has been reviewed by the Channing YMCA Board and the city's Legal Department. FINANCIAL IMPACT The $26,000 in funding for this project is contained in the 1992 CDBG budget. LEGAL IMPACT None. RECOMMENDATION It is recommended that the City Council approve the attached subrecipient agreement. A , resolution authorizing execution of the agreement is contained on the City Council 's regular ag . Ro e . alm Interim City Manager SUBRECIPIENT AGREEMENT COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM POSITIVE AFTER SCHOOL STRUCTURE PROGRAM CHANNING YMCA/CITY OF ELGIN THIS AGREEMENT is entered into this ,c1)t day of cL�xd�-LJ , 19 by and between the City of Elgin, Illinois, a municipal corporation therein called the "Grantee" ) and the Charming YMCA, a not-for-profit corporation (herein called the "Subrecipient ) . WHEREAS, the City of Elgin has applied for and received funds from the United States Government under• Title I of the Housing and Community Development Act of 1974, Public Law 93-383; and WHEREAS, the City of Elgin wishes to engage the Charming YMCA to assist the City of Elgin in utilizing such funds : NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, the sufficiency of which is hereby acknowledged, it is agreed between the parties hereto that ; I. SCOPE OF SERVICE A. The Charming YMCA has established a P. A. S. S. (Positive After School Structure) Program for neighborhood children and adolescents. The P. A. S. S. Program provides recreation, tutoring and counseling on a no lee/or reduced fee basis (depending on ability to pay ) . The P. A. S. S. Program is in need of game room equipment, computers and educational computer software to continue operation and serve neighborhood children and adolescents. The neighborhood served by the P. A. S. S. Program is predominately composed or low and moderate income persons as defined by the U. S. Department of Housing and Urban Development (H. U. D. ) . The primary neighborhood served is census tract 8513 with a 1990 low/moderate income population of 9, 285 (62Y of the total population) and a significant minority population. The Subrecipient shall be responsible for soliciting proposals for the provision of said equipment, the purchase of the necessary equipment and maintenance of the equipment purchased in a manner satisfactory to the Grantee and consistent with any standards required as a condition of providing these funds. The equipment to be purchased may include, but is not limited to, televisions, video cassette recorders, shuffleboards, hockey games, pool tables, ping pong tables, video machines, personal computers, printers and educational software compatible to software used by local schools. • The Subrecipient shall develop specifications for the equipment to be purchased. The specifications developed shall be reviewed and approved by the Grantee prior to solicitation of bids. Bids on the specified equipment shall be solicited by the Subrecipient. Equipment purchase shall be awarded to vendors through an open competitive bidding process or solicitation from at least three vendors, as determined by the Subrecipient and in compliance with the appropriate federal regulations. The Subrecipient and the Grantee shall review all bids prior to selection of the successful bidder. The Subrecipient shall execute a contract for purchase of equipment from selected bidder/vendor . Delivery of equipment and any associated equipment installation shall be completed by the selected bidder/vendor. The installed equipment shall be approved , in writing, by the Subrecipient prior to payment by the Grantee. All bidding, solicitation and purchase documents shall be available for inspection by the Grantee and representatives of the U. S. Department of Housing and Urban Development. The Subrecipient shall be responsible for documenting the addresses, names, and frequency of use of the facility and equipment by P. A. S. S. Program participants. All such documentation shall be available for inspection by the Grantee and representatives of the U. S. Department of Housing and Urban Development. II. PERFORMANCE MONITORING The Grantee shall monitor, at a minimum, on a semi-annual basis the performance of the Subrecipient regarding the goals and performance standards contained herein. Substandard performance, as determined by the Grantee, shall constitute material breach of this agreement. If action to correct such substandard performance is not taken by the Subrecipient within 30 days after being notified by the Grantee, the Grantee may terminate this agreement, and may pursue any remedies provided herein or by law. III. TIME OF PERFORMANCE " Purchase of equipment by the Subrecipient may be initiated on the date of execution of this agreement. The useful life of the equipment to be purchased is estimated to be five (5) years. The useful life of games and boards is estimated to be one ( 1 ) year. Based upon life expectancy, the use of said equipment shall be . reported on by the Subrecipient and monitored- by the Grantee for a five year period from the date of this agreement. Purchase of all equipment shall be completed within twelve ( 12) months from the date of execution of this agreement. • Page 2 IV. PAYMENT It is expressly agreed and understood that the total amount of funding to be provided for the Positive After School Structure Program equipment under this agreement shall not exceed 526, 000. The Grantee will provide payment, consistent with the purchase contract executed by the Subrecipient, to the s-lected vendors after equipment delivery, installation and approval of said equipment by the Subrecipient. • Payments may be contingent upon certification of the Subrecipient ' s financial management system in accordance with the standards specified in OMB Circular A-110, Attachment F(see Exhibit D) . V. NOTICES Communication and details concerning this agreement shall be directed to the following representatives : City of Elgin Channing YMCA Patricia Andrews, CDBG Administrator Patrick Nelson, Director 150 Dexter Court 111 North Channing Street Elgin, IL 60120 Elgin, IL 60120 (708) 931-5911 (708) 888-7431 • VI. SPECIAL CONDITIONS • The Subrecipient agrees to comply with the requirements of Title 24 Code of Federal Regulations, Part 570 of the Housing and Urban Development regulations concerning Community Development Block Grants and all federal regulations and policies issued pursuant to these regulations. The Subrecipient further agrees to utilize funds available under this Agreement to supplement rather than supplant funds otherwise available. VII. GENERAL CONDITIONS A. General Compliance The Subrecipient agrees to comply with all applicable federal, state and local laws and regulations governing the funds provided under this agreement. • • • Page • • • • B. Independent Contractor Nothing contained in this agreement is intended to, or shall. be construed in any manner, as creating or establishing the relationship of employer/employee between the parties. The Subrecipient shall at all times remain an independent contractor with respect to the services to be performed under this agreement. The Grantee shall be exempt from payment of all Unemployment Compensation, FICA, retirement, life and /or medical insurance and Workers' Compensation Insurance as the Subrecipient is an independent Subrecipient. • C. Hold Harmless The Subrecipient shall hold harmless, defend and indemnify the Grantee from any and all claims, actions, suits, charges and judgments whatsoever that arise out of the Subrecipient 's performance or nonperformance of the services or subject matter called for in this agreement. U. Workers' Compensation The Subrecipient shall provide Workers' Compensations Insurance coverage for all employees involved in the performance of this agreement. E. Insurance and Bonding • The Subrecipient shall _carry sufficient insurance coverage to protect contract assets from loss due to theft, fraud and/or undue physical damage, and as a minimum shall purchase a blanket fidelity bond covering all employees in an amount equal to cash advances from the Grantee. The Subrecipient shall comply with the bonding and insurance • requirements of Attachment B of OMB Circular A-110, Bonding and Insurance. F. Grantor Recognition The Subrecipient shall ensure recognition of the role of the Grantee in providing services through this agreement. All activities, facilities and items utilized pursuant to this contract shall be prominently labeled as to funding source. In addition, the Subrecipient shall include a reference to the support provided herein in all publications made possible with funds made available under this contract. • • • "rage 4 • • • G. Amendments The Grantee or the Subrecipient may amend this Agreement at any time, provided that such amendments make specific reference to this Agreement, are executed in writing, signed by a duly authorized representative of the parties hereto, and approved by the Elgin City Council. Such amendments shall not invalidate this Agreement, nor relieve or release the Subrecipient fauns its obligations under this Agreement. The Grantee may, in its discretion, amend this Agreement to conform with federal, state or local governmental guidelines, policies and available funding amounts or for other reasons. If such amendments result in a change in the funding, the scope of services, or schedule of the activities to be undertaken as part of this Agreement, such modifications shall be incorporated only by a written amendment signed by both the Grantee and Subrecipient. The Subrecipient shall cooperate in the execution of any and all documents necessary to effect such amendments at the sole discretion of the Grantee. H. Suspension or Termination, Either party may terminate this contract at any time by giving written notice to the other of such termination and specifying the effective date thereof at least 30 days before the effective date of such termination. Partial terminations of the Scope of Service may • only be undertaken with the prior approval of the Grantee. In the event of any termination, all finished or unfinished documents, data, studies, surveys, maps, models, photographs, reports or other materials prepared by the Subrecipient under this agreement shall, at the option of the Grantee, become the property of the Grantee, and the Subrecipient shall be entitled to receive just and equitable compensation, to the extent provided by the availability of funds as provided herein, for any satisfactory work completed on such documents or materials prior to the termination. The Grantee .may also suspend or terminate this Agreement, ir, whole or in part, if the Subrecipient materially fails to comply with any term of this Agreement, or with any of the rules, regulations or provisions referred to herein; and the Grantee may declare the Subrecipient ineligible for any further participation - in Grantee contracts, in addition to other remedies as provided by law. In the event there is probable cause to believe the. Subrecipient is in noncompliance with any applicable rules or regulation, the Grantee may withhold up to fifteen ( 15) percent of said Agreement funds until such time as the Subrecipient is found to be in compliance by the Grantee, or is otherwise adjudicated to be in compliance. • iai,.e • VIII. ADMINISTRATIVE REQUIREMENTS A. Financial Management - The Subrecipient agrees to comply with Attachment F of OMB Circular A-110 ( see Exhibit D ) and agrees to adhere to the accounting principles and procedures required therein, utilize adequate internal controls, and maintain necessary source documentation for all costs incurred. The Subrecipient shall administer its program in conformance with UMB Circulars A-122, "Cost Principles for Non-Profit Organizations" ( see Exhibit E) for all costs incurred whether charged on a direct or indirect basis. B. Records and Reports The Subrecipient shall be responsible for the following reports and documentation: 1. For each participant in the P. A. S. S Program the Subrecipient shall maintain a file containing the following information : a. Name and address of the participant. b. Race and ethnicity of the participant. c. Age of the- participant. c. Any fee charged to the participant. 2. For equipment purchased by the Subrecipient for use in the P. A. S. S. Program: a. Specifications for all equipment/materials purchased with Community Development Block Grant funds. b. Competitive bid/solicitation documents for the equipment purchased. c. Documentation regarding the review of bid documents and selection of the successful bidder/vendor. d. Written contract for purchase of equipment with the selected bidder/vendor . e. Documentation of acceptance of the equipment delivered and installed. • f. Documentation of Subrecipient's request for payment to the Grantee for the installed equipment. g. Financial records as required by 24 CFR Part 570, 502 and OMB Circular A-110. h. Other records necessary to document compliance with Subpart K of 24 CFR 570. • 3. The Subrecipient shall provide the Grantee with semi-annual reports on the number of P. A. S. S. Program participants. Said reports shall include average monthly program participation levels, equipment useage. levels (most used/least used) , any fees charged for program participation, equipment problems, and any other information as appropriate. . Page • 6 • 4. Retention of Records - The Sub ecipient shall retain all records pertinent to P. A. S. S. Program participation and expenditure. incurred under this contract for a period of five ( 5 ) years from the date of this agreement. 5. Client Data - The Subrecipient shall maintain, client data demonstrating client name, addr etc, age and racial/ethnic group and any fees paid to the P. A. S. S Program. Such information shall be rude available to the Grantee for review upon request. 6. Disclosure - The Subrecipient understands that client • information, collected under this contract is private and the use ct disclosure of such information, when not directly connected with the administration of the Grantee' s or Subrecipient' s responsibilities with respect to services provided under this agreement is prohibited unless written consent is obtained from such person receiving the service. 7. Property Records - The Subrecipient shall maintain real property inventory records which clearly -identify properties purchased with the allocated Grantee Community Development Block Grant funds. 8. Close-Outs - Subrecipient obligations to the Grantee - shall not end until all close-out requirements are completed. Activities during this close-out period shall include, but are not limited to; making final payments, completion of all required reporting, disposing of program assets ( return of unspent cash advances, of unused materials and program income balances) and determining custodianship of records. 9. Audits and Inspections - All Subrecipient records with respect to any matters covered by this agreement shall be made available to the Grantee and the U. S. Department of_ Housing . and Urban Development at any time during normal business _ hours, as often as the Grantee or the U. S. Department of Housing and Urban Development deems necessary, to audit, examine, and make excerpts or transcripts of all relevant- data. Any deficiencies noted in audit 'reports shall be fully satisfied by the Subrecipient within 30 days after receipt by the Subrecipient. Failure of the Subrecipient to comply with the above audit requirements will constitute a violation of this agreement and may result in the withholding of future payments. The Subrecipient hereby agrees to have an annual agency audit conducted in compliance with any relevant requirement of the Single Audit Act or other audit requirements as applicable. C. Program Income • • There should be no Program Income generated from this activity which is limited to the purchase of equipment. However, if Program Income is generated from the disposition of any of the equipment purchased with CDBG funds, any such income shall be returned to the Grantee for use in the Community Development Block Grant Program. . Page 7 D. Uniform Administrative Requirements The Subrecipient hereby agrees to comply with the uniform administrative requirements contained in 570. 502 ( see Exhibit B) . E. Procurement The Subrecipient shall maintain an inventory record (s) of all personal property and materials that may be procured with funds provided herein. All program assets shall revert to the Grantee upon, termination of this contract or upon discontinuation of the P. A. S. S. Program prior to January 1, 1999. As used in this agreement "program assets" shall be defined as equipment and software purchased with Community Development Block Grant funds. The Subrecipient shall procure materials in accordance with the requirements of Attachment 0 of OMB Circular A-110, Procurement Standards, and shall subsequently follow Attachment N, Property Management Standards, covering utilization and disposal of property. IX. PERSONNEL AND PARTICIPANT CONDITIONS A. Civil Rights 1. The Subrecipient agrees to comply with Title VI of the Civil Rights Act of 1964 as amended, Title VIII of the Civil Rights Act of 1968 as amended, Section 109 of Title I of the Housing and Community Development Act of 1974, Section 504 of the Rehabilitation Act of 1973, the Americans with Disabilities Act of 1990, the Age Discrimination Act of 1975, Executive Order ' 11063, and with Executive Order 11246 as amended by Executive Orders 11375 and 12086. 2. Nondiscrimination - The Subrecipient shall not discriminate against any employee or applicant for employment because of race, color, creed, religion, ancestry, national origin, sex, disability, or other handicap, age, marital status, or status with regard , to public assistance. The Subrecipient shall take affirmative action to ensure that all employment practices are free from such discrimination. Such employment practices include but are not limited to the following : hiring, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff, termination, rates of pay or other forms of compensation, and selection for training, including apprenticeship. 3. Section 504 - The Subrecipient agrees to comply with •any federal regulations issued pursuant to compliance -with Section 504 •of the Rehabilitation Act of 1973, (29 U. S. C. 706) which prohibits discrimination against the handicapped in any federally assisted program. The Grantee shall provide the Subrecipient with any guidelines necessary for compliance with that portion of the Page 6 • • • reyuiatiuh: iii ful-oe during the. tern of this contract. Failure of the Grantee to provide such- guidelines shall not relieve the Subrecipient of the obligation to comply with the terms of such guidelines. B. Affirmative Action 1. Written Commitment - The Subrecipient ayrees that it shall be committed to carry out an Affirmative Action Program in compliance with the City of Elgir, Ordinance No. Gi9-J3 Amending Chapter 3. 12 of the Elgin Municipal Code. The Subrecipient agrees to comply with • Chapter 3. 12. 100 Affirmative action-City contracts ( see Exhibit F ) . The Subrecipient shall submit a written commitment as provided for in Chapter 3. 12. 1 00 to the Grantee prior to the first payout. 2. Minority Business - The Subrecipient shall use its best efforts to afford minority and women-owned business enterprises the maximum practicable opportunity to participate in the performance of this contract. As used in this agreement, the tern "minority and female business enterprise" means a business at least fifty-one (51 ) percent owned and controlled by minority group members or women. For the purpose of this definition, "minority group members" are Afro-Americans, Spanish-speaking, Spanish surnamed or Spanish-heritage Americans, Asian-Americans and Arnericar, Indians. 3. Access to Records - The Subrecipient shall furnish all information and reports required hereunder and shall permit access to its books, records and accounts by the Grantee, HUD or its agent, or other authorized federal officials for purposes of investigation to ascertain compliance with the rules, regulations and provisions stated herein. 4. Notifications - The Subrecipient shall send to each labor union or representative of workers with which it has a collective bargaining agreement or other contract or understanding , a notice, to be provided by the agency contracting office, , advising the labor union or worker ' s representative of the Subrecipient 's commitments hereunder, and shall post copies of the notice in conspicuous places available to employees and applicants for employment. 5. EEO/AA Statement - The Subrecipient shall, in all solicitations or advertisements for employees placed by or on behalf of the Subrecipient, state that it is an Equal Opportunity ur Affirmative Action employer. 6. Subcontract Provisions - The Subrecipient shall include the pl uvisiuns of Paragraphs VII A, Civil Rights, and B., Affirmative . Action, in every subcontract or purchase- order, specifically or by reference, so that such provisions shall be binding upon each - subSubrecipient or vendor . Page • • C. Employment Restrictions 1. Prohibited Activity - The Subrecipient is prohibited from using funds provided herein, or personnel employed in the administration of the program for political activities; sectarian, or religious activities; lobbying, political patronage, and nepotism activities. 2. OSHA - Wner e employees are engaged in activities not covered under the Occupational gaiety and Health Act of 1970, they shall nut be required or peritted to work, be trained, or receive services in buildings or surroundings or under working conditions which are unsanitary, hazardous or dangerous to the participants' health or safety. 3. Right to Know - Participants employed or• trained for inherently dangerous occupations shall be assigned to work in accordance with reasonable safety practices. 4. Labor Standards - The Subrecipient agrees to comply with the requirements of the Secretary of labor in accordance with the Davis-Bacon Act as amended, the provisions of Contract Work Hours, the Safety Standards Act, the Copeland "Anti-Kickback" Act and all other applicable federal, state and local laws and regulations pertaining to labor standards insofar as those acts apply to the performance of this contract. The Subrecipient shall maintain documentation which demonstrates compliance with hour and wage requirements of this part. Such documentation shall be made available to the Grantee for review upon request. The Subrecipient agrees that, except with respect to the rehabilitation or construction of residential property designed for- residential use for less than eight ( 8) households, all contractors engaged under contracts in excess of $2, 000 for construction, renovation or• repair of any building or work financed iri whole or in part with assistance provided under this contract, shall comply with federal requirements of the regulations of the Department of Laboi , under 29 CFR, Parts 3, 1, 5, and 7 governing the payment of wages and ratio of apprentices and trainees to journeymen; provided, that if wage rates higher than those required under the regulations are imposed by or local law, nothing hereunder is intended to relieve the Subrecipient of its obligation, if any, to require payment of the higher wage. The Subrecipient shall cause or require to be inserted in full, in all such contracts subject to such regulations, provisions meeting the requirements of this pal aga aph, f u1 such contracts in excess of $10, 000. • • Page ACL • 5. Section 3 Clause - Compliance with the provisions of Section 3, the regulations set forth in 24 CFR 135, and all applicable ruin:. and orders issued hereunder prior to the execution of this contract, shall be a condition of the federal financial assistance provided under this contract and binding upon the Grantee, the Subrecipient and any subSubrecipients, their successors and assigns, . to those sanctions specified by the agreement through which federal assistance is provided. The Subrecipient further agrees to comply with these "Section 3" requirements and to include the following language in al] subcontracts executed under this' agreement : • "The work to be performed under this contract is a project assisted under a program providing direct federal financial assistance from HUD and is subject to the requirements of Section 3 of the Housing and Urban Development Act of 1S55, as amended, 12 U. S. C. 1701. Section 3 requires that to the greatest extent feasible opportunities for training and employment be given to lower income residents of the project area and contracts for work in connection with the project be awarded to business concerns which are located in, or owned in substantial part by persons residing in the areas of the project. " The Subrecipient certifies and agrees that no contractual or other disability exists which. would prevent compliance with the requirements. The Subrecipient agrees to send to each labor organization or representative of workers with which it has a collective bargaining agreement or other contract or understanding, if any, a notice advising said labor organization or worker ' s representative of its commitments under this Section 3 clause and shall post copies of the notice in conspicuous places available to employees and applicants for employment or training. The Subrecipient shall include this Section 3 clause in every subcontract and shall take appropriate action pursuant to the subcontract upon a finding that the subSubrecipient is in violation of regulations issued by the Grantor Agency. The Subrecipient shall not subcontract with any subSubrecipient where it has notice or • knowledge that the latter has been found in violation of regulations under 24 CFR 135 and shall not let any subcontract unless the subSubrecipient has first provided it with a preliminary statement of ability to comply with the requirements of these regulations. D. Conduct 1. Assignability - The Subrecipient shall not assign or transfer any interest in this contract without the prior written consent of the Grantee thereto; provided, however, that claims for money due or to become due to the Subrecipient from the Grantee under this contract may be assigned to a bank, trust company, or other financial institution, without such approval. Notice of any such assignment or transfer shall be furnished promptly to the Granter_ . Page 11 2. Hatch Act - The Subrecipient agrees that no funds provided, nor personnel employed under this contract, shall be in any way or to any extent engaged in the conduct of political activities in violation of Chapter 15 of Title V United State Code. 3. Conflict of Interest - The Subrecipient agrees to abide by • the provisions of 24 CFR 570. 611 with respect to conflicts of inter eat, and covenants that it presently has no financial interest and shall not acquire any financial interest, direct or indirect, which would conflict in any manner or degree with the performance of services required under this contract. The Subrecipient further covenants that in the per fol n ance of this Conti act no person having such a financial interest shall be employed or retained by the Subrecipient hereunder. These conflict of interest provisions apply to any person who is an employee, agent, consultant, officer, or elected official ur appointed official of the Grantee, or of any designated public agencies or subrecipients which are receiving funds under the CDBG Entitlement program. 4. Subcontracts - The Subrecipient shall not enter into any subcontracts with any agency or individual in the performance of this contract without the written consent of the Grantee prior to the execution of such agreement. The Subrecipient shall monitor all subcontracted services on a regular basis to assure contract compliance. Results of monitoring efforts shall be summarized in written reports and supported with documented evidence off follow-up actions taken to correct areas of noncompliance. • The Subrecipient shall cause all of the provisions of this contract in its entirety to be included in and made a part of any subcontract executed in the performance of this agreement. The Subrecipient shall undertake to ensure that all subcontracts let in the performance of this agreement shall be awarded on a fair and open competition, basis. Executed copies of all subcontracts shall be forwarded to the Grantee along with documentation concerning the selection process. 5. Religious Organization - The Subrecipient agrees that funds provided under this contract shall not be utilized for religious activities, to promote religious interests, or for the benefit of a religious organization in accordance with the federal regulations specified in 24 CFR 570. 200( j ) . • Page 12 • X. ENVIRONMENTAL CONDITIONS The Subrecipient agrees to comply with the following regulations insofar as they apply to the performance of this contract : 1. Clean Ali Act, 42 U. S. C. , 1857, et Gel{. 2. Federal Water Pollution Control Act, as amended, 33 U. S. C. : 251, eL seq. , as amended 1318 relating to inspection, monitoring, entry, reports, and information, as well as other requirements specilicd in said Section 114 and Section 308, and all regulations and guidelines issued thereunder. 3. Environmental Protection Agency (EPA ) regulations pursuant to 40 C. F. R. , Part 50, as amended. 4. National Environmental Policy Act of 1969 . 5. HUD Environmental Review Procedures. ( 24 CFR, Part 58) . 6. Flood Disaster Protection - The Subrecipient agrees to comply with the requirements of the Flood Disaster Protection Act of 1973 (P. L. -2234 ) in regard to the sale, lease or other transfer of land acquired, cleared or improved under the terms of this contract, as it may apply to the provisions of this contract. 7. Lead Based Paint - The Subs eL.ipient agrees that any construction or rehabilitation of residential structures with assistance provided under this contract shall be subject to HUD Lead Based Paint Regulations at 24 CFR 570. 608, and 24 CFR Part 35, and in particular Sub-part B thereof. Such regulations pertain to all HUD-assisted housing and require that all owners, prospective owners, and tenants or properties constructed prior to 1978 be properly notified that such properties may include lead-based paint. Such notification shall point out the hazards of lead-based paint and explain the symptoms, treatment and precautions 'that should be taken when dealing with lead-based paint. poisoning. 8. Historic Preservation - The Subrecipient agrees to comply with the Historic Preservation requirements set forth in the National Historic Preservation Act of 1966, as amended ( 16 U. S. C. 470 ) and the procedures set forth in 36 CFR, Part 800, Advisory Council on Historic Preservation Procedures for Protection of Historic Properties, insofar as they apply to the performance of this contract. In general, this requires concurrence from• the State Historic Preservation Officer for all rehabilitation and demolition of historic properties that are fifty ( 50) years of older or that ult• included on a Federal, State, or local historic property list. 1ti • C72/-717 Ail A •I . _?6,10Pie 'atrick ' lson Date U rt 0. Ma m Date Executive Director In erirn City Manager Channing YMCA City of Elgin Subscribed and swGri, to before e this , gib day of r7 /-12-4-k, , 1997 • • /IA-Ct.-CU DeLonna Mecum City Clerk • • Faye 14 • • . 1 , i , I , , • STATE: ILLINOIS INCOME LIMITS PREPARED: 12-23-92 PROGRAM I PERSON 2 PERSON 3 PERSON 4 PERSON 5 PERSON 6 PERSON 7 PERSON 6 PERSON • PMSA : Aurora-Elgin. IL FT 1993 MEDIAN FAMILY VERY LOW-INCOME ` 19200 20800 23400 26000 28100 30180 9225Q 34300 INCOME: 52000 LOW-INCOME 27600 31750 35750 39700 42900 46050 49250 52400 MSA : Bloomington-Normal. IL FY 1993 MEDIAN FAMILY VERY LOW-INCOME 15850 18100 20400 22650 24450 26250 28100 29900 INCOME: 45300 LOW-INCOME 25350 29000 32600. 36250 39150 42050 44950 47950 MSA : Champaign-Urbana-Rantoul. IL FY 1993 MEDIAN FAMILY VERY LOW-INCOME 14200 16250 18250 20300 21900 23550 25160 28800 INCOME: 40600 LOW-INCOME 22750 26000 29250 32500 35100 37700 40250 42850 PMSA : Chicago, IL FY 1993 MEDIAN FAMILY VERY LOW-INCOME 16650 19050 21400 23900 25700 27600 29500 31400 INCOME: 47800 LOW-INCOME 26650 30450 34250 38100 41150 44150• 47200 50250 MSA : Davenport-Rock Inland-Moline. FY 1993 MEDIAN FAMILY VERY LOW-INCOME 13600 15500 17450 19400 20950 22500 24050 25600 INCOME: 38800 LOW-INCOME 21750 24850 27950 31050 33500 36000 38500 40950 MSA : Decatur. IL FY 1993 MEDIAN FAMILY VERY LOW-INCOME 13900 15900 17850 19850 21480 23050 24600 26200 . INCOME: 39700 LOW-INCOME 22250 25400 28600 31750 34300 36850 39400 41900 PMSA FY 1993�MEDIANtFAMILY VERY LOW-INCOME 18050 20600 23150 25750 27800 29650 31950 34000 INCOME: 61500 LOW-INCOME 27800 31750 35750 39700 42900 46050 49250 52400 NSA : Kankakee. IL FY 1993 MEDIAN FAMILY VERY LOW-INCOME 13350 15300 17200 19100 20650 22150 23700 26200 INCOME: 38200 LOW-INCOME 21400 24450 27500 30550 33000 35450 37900 40350 PMSA : Lake County. IL FY 1993 MEDIAN FAMILY VERY LOW-INCOME 20950 23900 26900 29900 32300 34700 37100 39450 INCOME: 59800 LOW-INCOME 27800 31750 35750 39700 42900 46050 49250 52400 MSA : Pearls, IL FY 1993 MEDIAN FAMILY VERY LOW-INCOME 14550 16600 18650 20760 22400 24050 26780 27400 INCOME: 41500 LOW-INCOME 23250 26550 29900 33200 35850 38500 41150 43800 MSA FY 1993�MEEDIAN FAMILY VERY LOW-INCOME 14900 17060 19160 21300 23000 24700 26400 29100 INCOME: 42600 LOW-INCOME 23850 27250 30650 34100 38800 39550 42250 45000 MSA : St. Lou/e, MO-IL FY 1993 MEDIAN FAMILY VERY LOW-INCOME 15300 17500 19650 21960 23600 26350 27100 28850. INCOME: 43700. LOW-INCOME 24460 27950 31450 34950 37750 40550 43350 46150 • Ex hi 1- A EXHIBIT 570.502 Applicability of uniform administrative requirements. (a) Recipients and subrecipients which are governmental entities (including public agencies) shall comply with the requirements and standards of OMB Circular No. A-87, "Principles for Determining Costs Applicable to Grants and Contracts with State, Local and Federally recognized Indian Tribal Governments", OMB Circular A-128, "Audits of State and Local Governments" (implemented at 24 CFR Part 44) and with the following sections of 24 CFR Part 85 "Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments": (1) Section 85.3, "Definitions"; (2) Section 85.6, "Exceptions"; (3) Section 85.12, "Special grant or subgrant conditions for 'high-risk' grantees"; (4) Section 85.20, "Standards for financial management systems," except paragraph (a) ; J-3 12/88 (5) Section 85.21, "Payment, " except as modified by § 570.513; (6) Section 85.22, "Allowable costs"; (7) Section 85.26, "Non-federal audits"; (8) Section 85.32, "Equipment, " except in all cases in which the equipment is sold, the proceeds shall be program income; (9) Section 85.33, "Supplies"; (10) Section 85.34, "Copyrights"; (11) Section 85.35, "Subawards to debarred and suspended parties"; (12) Section 85.36, "Procurement, " except paragraph (a) ; (13) Section 85.37, "Subgrants"; (14) Section 85.40, "Monitoring and reporting program performance, " except paragraphs (b) through (d) and paragraph (f); (15) Section 85.41, "Financial reporting, " except paragraphs 0 (a) , (b) , and (e) ; (16) Section 85.42, "Retention and access requirements for records"; (17) Section 85.43, "Enforcement"; (18) Section 85.44, "Termination for convenience"; (19) Section 85.51, "Later disallowances and adjustments" and (20) Section 85.52, "Collection of amounts due." (b) Subrecipients, except subrecipients which are governmental entities, shall comply with the requirements and standards of OMB Circular No. A-122, "Cost Principles for Non Profit Organizations" or OMB Circular No. A-21, "Cost Principles for Educational Institutions," as applicable, and with the following Attachments to OMB Circular No. A-110: (1) Attachment A, "Cash Depositories", except for paragraph 4 concerning deposit insurance; (2) Attachment B, "Bonding and Insurance"; lit J-4 12/88 (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 annual performance and evaluation report, as prescribed in 570.507, in which the specific activity is reported on for the final time; (4) Attachment F, "Standards for Financial Management Systems"; (5) Attachment H, "Monitoring and Reporting Program Performance, " paragraph 2; (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 subrecipient for CDBG activities shall be transferred to the recipient for the CDBG program or shall be retained after compensating the recipient; and (7) Attachment 0, "Procurement Standards." r, 7. Subpart X of Part 570 is revised to read as follows: Subpart I -- Other Program Requirements. Sec. • 570.600 General. 570.601 Public Law 88-352 and Public Law 90-284; affirmatively furthering fair housing; and Executive Order 11063. 570.602 Section 109 of the Act. S70.603 Labor standards. 570.604 Environmental standards. 570.605 National Flood Insurance Program. 570.606 Relocation, displacement and acquisition. 570.607 Employment and contracting opportunities. 570.608 Lead-based paint. 570.609 Use of debarred, suspended, or ineligible contractors or subrecipients. 570.610 Uniform administrative requirements and cost principles. 570.611 Conflict of interest. 570.612 Executive Order 12372. • Subpart R -- Other Program Requirements. $ 570.600 General. (a) Section 104 (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, among other things, that the grant •will be conducted and administered in conformity with Public Law 88-352 and Public Law 90-284,6 and, further, that the grantee 'will comply with the other provisions of this title and with other applicable laws.' Section 104 (e) (1) of the Act requires that the Secretary determine with respect to grants made pursuant to section • l06 (b) (Entitlement Grants) and 106 (d) (2) (8) (BUD-administered Small Cities Grants) , at least on an annual basis, among other things, 'whether the grantee has carried out (its) certifications in compliance with the requirements and the primary objectives of this title and with other applicable laws. . . .' Certain other statutes are expressly made applicable to activities assisted under the Act by the Act itself, while other laws not referred to in the Act may be applicable to such activities by their own terms. Certain statutes or Executive Orders which may be applicable to activities assisted under the Act by their own terms are administered or enforced by governmental departments or agencies other than the Secretary or the Department. This Subpart R enumerates laws which the Secretary will treat as applicable to grants made under section 106 of the Act, other than grants to States made pursuant to section 106(d) of the 1-1 EXHIBIT Ci 9/88 Act, for purposes of the determinations described above to be made by the Secretary under section 104 (e) (1) of the Act, including statutes expressly made applicable by the. Act and certain other statutes and Executive Orders for which the Secretary has enforcement responsibility. The absence of mention herein of any other statute for which the Secretary does not have direct enforcement responsibility is not intended to be taken as an indication that, in the Secretary's opinion, such statute or Executive Order is not applicable to activities assisted under the Act. For laws which the Secretary will treat as applicable to grants made to States under section 106 (d) of the Act for purposes of the determination required to be made by the Secretary pursuant to section 104 (e) (2) of the Act, see S 570.496. (b) This subpart also sets forth certain additional program requirements which the Secretary has determined to be applicable to grants provided under the Act as a matter of administrative discretion. (c) In addition to grants made pursuant to section 106 (b) and 106 (d) (2) (8) of the Act (Subparts D and F, respectively) , the requirements of this Subpart K are applicable to grants made pursuant to sections 107 and 119 of the Act (Subparts E and G, respectively) , and to loans guaranteed pursuant to Subpart M. S 570.601 Public Law 88-352 and Public Law 90-284; affirmatively furthering fair housing; Executive Order 11063. Section 104 (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 Public Law 88-352 and Public Law 90-284 and the grantee will affirmatively further fair housing.' Similarly, section 107 provides that no grant may be made under that section (Secretary's Discretionary Fund) or section 119 (UDAG) without satisfactory assurances that the grantee's program will be conducted and administered in conformity with Public Law 88-352 and Public Law 90-284. (a) "Public Law 88-352' refers to title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d et seg,.) , which provides that no person in the United States shall on the ground 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. Section 602 of the Civil Rights Act of 1964 directs each Federal department and agency empowered to extend Federal financial assistance to any program or activity by way of grant to effectuate the foregoing prohibition by issuing rules, regulations, or orders of general applicability which ' R-2 9/88 /�► shall be consistent with achievement of the statute authorizing the financial assistance. HUD regulations implementing the requirements of Title VI with respect to HUD programs are contained in 24 CFR Part 2. (b) 'Public Law 90-284' refers to title VIII of the Civil Rights Act of 1968 (42 U.S.C. 3601 et ,sseeg.) , popularly known as the Fair Housing Act, which provides-that it is 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 otherwise making unavailable or denying a dwelling to any person, because of race, color , religion, sex, or national origin. Title VIII further requires the Secretary to administer the programs and activities relating to housing and urban development in a • manner affirmatively to further the policies of Title VIII. Pursuant to this statutory direction, the Secretary requires that grantees administer all progr;ms and activities related to housing and community development in a manner to affirmatively further the policies of Title VIII: furthermore, section 104 (b) (2) of the Act requires that each grantee receiving funds under section 106 of the Act (entitlement or small cities grantees) certify to the satisfaction of the Secretary that it will affirmatively further fair housing. (c) Executive Order 11063, as amended by Executive Order 12259, . directs the 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. S 570.602 Section 109 of the Act. (a) Section 109 of the Act requires that no person in the United States shall on the ground 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 whole or in part with community development funds made available pursuant to the Act. For purposes of this section 'program or activity' is defined as any function conducted by ari identifiable administrative unit of the recipient, or by any unit of government, subrecipient, or R-3 9/88 private contractor receiving community development funds or loans from the recipient. "Funded in whole or in part with 41) community development funds' means that community development funds in any amount in the form of grants or proceeds from HUD guaranteed loans have been transferred by the recipient or a subrecipient to an identifiable administrative unit and disbursed in a program or activity. In subsection (b) of this section, 'recipient" means recipient as defined in 24 CFR 1.2 (f) . (b) Specific discriminatory actions prohibited and corrective actions. (1) A recipient may not, under any program or activity to which the regulations of this part may apply, directly or through contractual or other arrangements, on the ground of race, color, national origin, or sex: (i) Deny any individual any facilities, services, financial aid or other benefits provided under the program or activity. (ii) Provide any facilities, services, financial aid or other benefits which are different, or are provided in a different form, from that provided to others under the program or activity. (iii) Subject an individual 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. (iv) Restrict an individual in any way in access to, or in the enjoyment of, any advantage or privilege enjoyed by others in connection with facilities, services, financial aid or other benefits under the program or activity. (v) Treat an individual differently from others in determining whether the individual satisfies any admission, enrollment, eligibility, membership, or other requirement or condition which the individual must meet in order to be provided any facilities, services or other benefit provided under the program or activity. (vi) Deny an individual an opportunity to participate in a program or activity as an employee. (2) A recipient may not use criteria or methods of • administration which have the effect of subjecting persons to discrimination on the basis of race, color, national 1(-4 9/88 origin, or sex, or have the effect of defeating or substantially impairing accomplishment of the objectives of the program or activity with respect to persons of a particular race, color, national origin, or sex. (3) A recipient, in determining the site or location of housing or facilities provided in whole or in part with funds under this part, may not make selections of such site or location which have the effect of excluding persons from, denying them the benefits of, or subjecting them to discrimination on the ground of race, color, national origin, or sex; or which have the purpose or effect of defeating or substantially impairing the accomplishment of the objectives of the Act and of this section. (4) • administering program or activity funded in whole (i) In administerin a y or in part with CDBG funds regarding which the recipient has previously discriminated against persons on the ground of race, color, national origin or sex, or . if there is sufficient evidence to conclude that such discrimination existed, the recipient must take remedial affirmative action to overcome the effects of prior discrimination. The word previously does not exclude current discriminatory practices. (ii) In the absence of discrimination, a recipient, in administering a program or activity funded in whole or in part with funds made available under this part, may take any nondiscriminatory affirmative action necessary to ensure that the program or activity is open to all without regard to race, color, national origin or sex. (iii) After a finding of noncompliance or after a recipient has a firm basis to conclude that discrimination has occurred, a recipient shall not be prohibited by this • section from taking any action eligible under Subpart C to ameliorate an imbalance in services or facilities provided to any geographic area or specific group of persons within its jurisdiction, where the purpose of such action is to remedy prior discriminatory practice or usage. (S) Notwithstanding anything to the contrary in this section, nothing contained herein shall be construed to prohibit any recipient from maintaining or constructing separate living facilities or rest room facilities for the different sexes. Furthermore, selectivity on the basis of sex is not prohibited when institutional or custodial T-5 9/88 services can properly be performed only by a member of the j� same sex as the recipients of the services. 'J► (c) 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 O.S.C. 6101 et sse�egg.) or with respect to an otherwise qualified handicapped person 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 part with funds made available pursuant to the Act. HUD regulations implementing the Age Discrimination Act are contained in 24 CFR Part 146 and the regulations implementing section 504 are contained in 24 CFR Part 8. S 570.603 Labor standards. Section 110 of the Act requires that all laborers and mechanics employed by contractors or subcontractors on construction work financed in whole or in part with assistance received under the Act shall be paid wages at rates not less than those prevailing on similar construction in the locality as determined by the Secretary of Labor in accordance with the Davis-Bacon Act, as amended (40 U.S.C. 276a - 276a-5) . By reason of the foregoing requirement, the Contract Work Hours and Safety Standards Act (40 U.S.C. 327 et seg. ) also applies. However, these requirements apply to the rehabilitation of residential property only if such 0) a property contains not less than 8 units. With respect to the labor standards specified in this section, the Secretary of Labor has the authority and functions set forth in Reorganization Plan Number 14 of 1950 (5 U.S.C. 1332-15) and section 2 of the Act of June 13, 1934, as amended (40 U.S.C. 276c) . S 570.604 Environmental standards. Section 104 (g) expresses the intent that 'the policies of the National Environmental Policy Act of 1969 and other provisions of law which further the purposes of such Act (as specified in regulations issued by the Secretary) . . . fbe) most. effectively implemented in connection with the expenditure of funds under' the Act. Such other provisions of law which further the purposes of the National Environmental Policy Act of 1969 are specified in regulations issued pursuant to section 104 (g) of the Act and contained in 24 CFR Part 58. Section 104 (g) also provides that, in lieu of the environmental protection procedures otherwise applicable, the Secretary may under regulations provide for the release of funds for particular projects to grantees who assume all of the responsibilities for environmental review, decisionmaking, and action pursuant to the National Environmental Policy Act of 1969, and the other provisions of law specified by the Secretary as described above, that would apply to the Secretary were he/she to , R-6 9/88 V undertake such projects as Federal projects. Grantees assume such environmental review, decisionmaking, and action responsibilities by execution of grant agreements with the Secretary. The procedures for carrying out such environmental responsibilities are contained in 24 CFR Part 58. S 570.605 National Flood Insurance Program. Section 202 (a) of the Flood !)isaster Protection Act of 1973 (42 U.S.C. 4106) provides that no Federal officer or agency shall approve any financial assistance for acquisition or construction purposes (as defined under section 3 (a) of said Act (42 U.S.C. • 400 (a) ) , one year after a community has been formally notified of its identification as a community containing an area of special flood hazard, for use in any area that has been identified by the - Director of the Federal Emergency Management Agency as an area having special flood hazards unless the community in which such area is situated is then participating in the National Flood Insurance Program. Notwithstanding the date of HUD approval of the recipient 's application (or, in the case of grants made under Subpart D, the date of submission of the grantee's final statement pursuant to 5 570. 302) , funds provided under this part shall not be expended for acquisition or construction purposes in an area that - has been identified by the Federal Emergency Management Agency 1 $ (FEMA) as having special flood hazards unless the community in 4 which the area is situated is participating in the National Flood Insurance Program in accordance with 44 CFR Parts 59-79, or less than a year has passed since FEMA notification to the community regarding such hazards; and flood insurance is obtained in accordance with section 102 (a) of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4001) . 5 570.606 Relocation, displacement and acquisition. (a) Uniform Relocation Act. (1) The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (URA) (42 U.S.0 4601) and HUD implementing regulations at 24 CFR Part 42 apply to the acquisition of real property by a State agency for an activity assisted under this part and to the displacement of any family, individual, business, nonprofit organization or farm that results from such acquisition. The grantee 's certification of compliance with the URA is required in the grant agreement. ' (2) Ari acquisition and resulting displacement by a State agency is for an assisted activity" if it occurs on or III after the date of the initial submission of a final statement under 24 CFR 570.302 (a) (2) (Entitlement Grants) ; X-7 9/88 the initial submission of an application to HUD by a unit , of general local government under SS 570.426, 570.430, or 570.435(d) that is granted for the requested activity (HUD administered Small Cities Program) ; or the submission of an application to HUD by a city or urban county under S 570.458 that is granted for the requested activity (UDAG) . However, an acquisition or displacement that occurs on or after the described date is not subject to the URA if the grantee determines that the acquisition or displacement was not carried out for an assisted activity, and the HUD Field Office concurs in that determination. An acquisition or displacement that occurs before the described date is subject to the URA, if the grantee or the HUD Field Office determines that the acquisition or displacement was carried out for the assisted activity. The grantee may, at any time, request a HUD determination whether an acquisition or displacement will be considered to be for an assisted activity and thus subject to these regulations. To be eligible for relocation assistance, however, a person must also meet the eligibility criteria in 24 CFR Part 42. (b) Residential antidisplacement and relocation assistance plan. Under section 104 (d) of the Act, each grantee must adopt, make public and certify that it is following a residential antidisplacement and relocation assistance plan providing one- for-one replacement units (paragraph (b) (l) of this section) , and relocation assistance (paragraph (b) (2) of this section) . The plan must also indicate the steps that will be taken consistent with other goals and objectives of this part to minimize the displacement of persons from their homes as a result of any activities assisted under this part. (1) One-for-one replacement units. (i) All occupied and vacant occupiable low/moderate-income dwelling units that are demolished or converted to a use other than as low/moderate-income dwelling units as a direct result of an activity assisted under this part must be replaced by governmental agencies or private developers with low/moderate-income dwelling units. Replacement low/moderate-income dwelling units may include public housing, or existing housing receiving Section 8 project-based assistance under the United States Rousing Act of 1937. The replacement low/moderate-income dwelling units must be provided within three years of the commencement of the demolition or rehabilitation related to the conversion, and must meet the following requirements: (A) The units must be located within the grantee's jurisdiction. R-8 9/88 (B) The units must be sufficient in number and size to house at least the number of occupants that could have been housed in the units that are demolished or converted. The number of occupants that may be housed in units shall be determined in accordance with local housing occupancy codes. (C) The units must be provided in standard condition. Replacement low/moderate-income dwelling units may include units that have been raised to standard from substandard condition. (A) The units must be designed to remain low/moderate- • income dwelling units for at least 10 years from the date of initial occupancy. (ii) Before obligating or expending funds provided under this part for any activity that will directly result in the demolition of low/moderate-income dwelling units or the conversion of low/moderate-income dwelling units to another use, the grantee must make public, and submit the following information in writing to HUD: (A) A description of the proposed assisted activity; 1 (B) The general location on a map and approximate number • of dwelling units by size (number of bedrooms) that will be demolished or converted to a use other than for low/moderate-income dwelling units as a direct result of the assisted activity; (C) A time schedule for the commencement and completion of the demolition or conversion; (D) The general location on a map and approximate number of dwelling units by size (number of bedrooms) that will be provided as replacement dwelling units; (E) The source of funding and a time schedule for the provision of replacement dwelling units; (F) The basis for concluding that each replacement dwelling unit will remain a low/moderate-income dwelling unit for at least 10 years from the date of initial occupancy. (iii) (A) The requirements of paragraph (b) (1) of this section do not apply if the HUD Field Office determines, based upon objective data, that there is an adequate supply of vacant low/moderate-income dwelling units K-9 9/88 in standard condition available on a nondiscriminatory basis within the grantee's jurisdiction. In making this determination, the HUD Field Office will consider the housing vacancy rate for the jurisdiction, the number of vacant low/moderate-income dwelling units in the jurisdiction (excluding units that will be demolished or converted) and the number of eligible families on waiting lists for housing assisted under the United States Housing Act of 1937 in the jurisdiction. (B) The BUD Field Office may consider the supply of vacant low/moderate-income dwelling units in standard condition available on a nondiscriminatory basis in an area that is , larger than the grantee's jurisdiction. Such additional dwelling units shall be considered if the BUD Field Office determines that the units would be suitable to serve the needs of the low- and moderate income households that could be served by the low/moderate-income dwelling units that are to be demolished or converted to another use. The BUD Field Office must base this determination on geographic and demographic factors, such as location and access to places of employment and to other facilities. (C) The grantee must submit a request for a determination under paragraph (b) (1) (iii) of this section, directly to the BUD Field Office. (2) Relocation assistance. (i) Each low- or moderate-income household that is displaced by demolition or by the conversion of a low/moderate income dwelling unit to another use as a direct result of an activity assisted under this part shall be provided with relocation assistance. The • low- or moderate-income household may elect to receive relocation assistance described at 24 CFR Part 42 (BUD's regulations implementing the URA) , or may elect to receive the following relocation assistance: (A) The relocation assistance described at 24 CFR Part 42, Subpart C (General Relocation Requirements) and Subpart D (Payment for Moving and Related Expenses) . Relocation notices must be issued consistent with, and in the manner prescribed under , 24 CFR 42.203. The definition of "comparable • replacement dwelling" used in 24 CFR Part 42 is modified as described in paragraph (b) (3) (i) of this section. Displaced households provided with replacement housing assistance under paragraph R-10 9/88 (b) (2) (i) (C) of this section, in the form of a 4 certificate or housing voucher under Section 8 of the United States Housing Act of 1937, must be provided referrals to comparable replacement dwelling units whose owners are willing to participate in the housing voucher or certificate program. The grantee shall advise tenants of their rights under the Federal Fair Housing Law (Title VIII) and of replacement housing opportunities in such a manner that, whenever feasible, they will have a choice between relocating within their neighborhoods and other neighborhoods consistent with the grantee's responsibility to affirmatively further fair housing; (B) The reasonable and necessary cost of any security deposit required to rent the replacement dwelling unit, and credit checks required to rent or purchase the replacement dwelling unit; and (C) Replacement housing assistance. Households are eligible to receive one of the following forms of replacement housing assistance: (1) Each household must be offered compensation designed to ensure that, for a five-year period , the displaced household will not bear, after PR relocation, a ratio of shelter costs to income that exceeds 30 percent. Such compensation * shall be either : (i) A certificate or housing voucher for rental assistance provided through the local Public Housing Agency under Section 8 of the United State Housing Act of 1937; or (ii) Cash rental assistance equal to 60 times tie amount that is obtained by subtracting 30 percent of the displaced household 's monthly gross income (with such adjustments as the grantee may deem appropriate) from the lesser of: the monthly cost of rent and utilities at a comparable replacement dwelling unit or the . monthly cost of rent and utilities at the decent, safe and sanitary replacement dwelling to which the household relocates. The grantee may provide the cash payment in either a lump sum or in installments. The grantee may at its discretion offer the household a choice between the certificate/housing voucher or cash rental • assistance. A R-11 9/88 (2) If the household purchases an interest in a rousing cooperative or mutual housing association and occupies a decent, safe and sanitary unit in the cooperative or association, the household may elect to receive a lump sum payment. This lump sum payment shall be equal to the capitalized value of 60 monthly installments of the amount that is obtained by subtracting 30 percent of the displaced household 's monthly gross income (with such adjustments as the grantee may deem appropriate) from the monthly cost of rent and utilities at a comparable replacement dwelling unit. To compute the capitalized value, the installments shall be discounted at the rate of interest paid on passbook savings deposits by a federally- insured bank or savings and loan institution conducting business within the grantee's jurisdiction. To the extent necessary to minimize hardship to the household, the grantee shall, subject to appropriate safeguards, issue a payment in advance of the purchase of the interest in the housing cooperative or mutual housing association. (ii) Eligibility for relocation assistance. (A) A low- or moderate-income household that is required to move as a direct result of demolition or conversion of a low/moderate income dwelling unit to another use, is eligible for relocation assistance under paragraph (b) (2) of this section ifs (1) The household is required to move from the dwelling unit on or after the date that the owner submits a request to the grantee for financial assistance that is later approved for the requested activity. (This applies to dwelling units owned by a person other than a Federal or State agency, as defined under the URA) . • (2) The household is required to move from the dwelling unit on or after the date of the initial submission of a final statement under 24 CFR 570.302 (a) (2) (Entitlement Grants) ; the initial submission of an application to HUD by a unit of general local government under • SS 570.426, 570.430, or 570.435(d) that is granted for the requested activity (HUD administered Small Cities Program) ; or the submission of an application to BUD by a city or A urban county under S 570.458 that is granted for • E-12 9/88 I7 the requested activity (UDAG) . (This applies to dwelling units owned by a Federal or State agency as defined under the URA.) (8) If the displacement occurs on or -after the • appropriate date described in paragraph (b) (2) (ii) (A) of this section, the low- or moderate-income household is not eligible for relocation assistance if: (1) The household is evicted for cause; (2) The household moved into the property on or after the date described in paragraph (b) (2) (ii) (A) of this section, after receiving written notice of the expected displacement; or (3) The grantee determines that the isplacement was not a direct result of the assisted activity, and the BUD office concurs in that determination. (C) If the displacement occurs before the appropriate date described in paragraph (b) (2) (ii) (A) of this section, the low- or moderate-income household is eligible for relocation assistance if the grantee or BUD determines that the displacement was a direct result of an activity assisted under this part. (3) Definitions. For the purposes of paragraph (b) of this sect on: (i) 'Comparable replacement dwelling unit' means a dwelling unit that: (A) Meets the criteria of 24 CFR 42.2 (c) (1) through (4) ; and (B) Is available at a monthly cost for rent plus estimated average monthly utility costs that does not exceed 30 percent of the household's average gross monthly income (with such adjustments to income as the grantee may deem appropriate) after taking into account any rental assistance the household would receive. Where a certificate or housing voucher is provided to a household under paragraph (b) (2) (1) (C) (1) (i) of this section, the dwelling unit must • be avaifab f to the household at a monthly cost for rent and estimated average monthly utility cost that does not exceed the Fair Market Rent or the payment standard, respectively. AO 1-13 9/88 (ii) 'Decent, safe and sanitary dwelling' means a decent, • safe and sanitary dwelling as defined in 24 CFR 42.2 (e) . (iii) 'Low/moderate income dwelling unit' means a dwelling unit with a market rental (including utility costs) that does not exceed the applicable Fair Market Rent (FMR) for existing housing and moderate rehabilitation established under 24 CFR Part 888. (iv) 'Occupiable dwelling unit' means a dwelling unit that is in a standard condition, or is in a substandard condition, but is suitable for rehabilitation. (v) 'Standard condition' and 'substandard condition suitable for rehabilitation." If the grantee has a HUD-approved Housing Assistance Plan, the definitions of 'standard condition' and 'substandard condition suitable for rehabilitation" established in the plan will apply. If the grantee does not have a HUD- approved Housing Assistance Plan, the grantee must establish and make public its definition of these terms consistent with the requirements of S 570.306 (e) (1) . (4) Effective date. For all grants except those made under Subpart D of this part (Entitlement Grants) , the provisions of this paragraph (b) are applicable to grants made on or after October 1, 1988. For grants made under Subpart D, these provisions will govern all activities for which funds are first obligated by the grantee on or after the date the first grant is made after September 30, 1988, without regard to the source year of the funds used for the activity. (c) Section 104 (k) relocation requirements. Section 104 (k) of the Act requires that reasonable relocation assistance be provided to persons (families, individuals, businesses, nonprofit organizations, or farms) displaced CLA. , moved permanently and involuntarily) as a result of -the use of assistance received under this part to acquire or substantially rehabilitate property. If such displacement is subject to paragraph (a) or (b) of this section, above, this paragraph does not apply. The grantee must develop, adopt and provide to persons to be displaced a written notice of the relocation assistance for which they are eligible. The minimum requirements for such assistance under the UDAG Program are described at S 570.457 (b) . Under CDBG programs, persons entitled to assistance under this paragraph must be provided relocation assistance, including at a minimum: (1) Reasonable moving expenses; • R-14 9/88 {2) Advisory services needed to help in relocating. The grantee shall advise tenants of their rights under the Federal Fair Housing Law (Title VIII) and of replacement housing opportunities in such a manner that, whenever feasible, they will have a choice between relocating within their neighborhoods and other neighborhoods consistent with the grantee's responsibility" to affirmatively further fair housing ; and 1 (3) Financial assistance sufficient to enable any person displaced from his or her dwelling to lease and occupy a suitable, decent, safe and sanitary replacement dwelling where the cost of rent and utilities does not exceed 30 percent of the household's gross income. (d) Optional relocation assistance. Under section 105(a) (11) of the Act, the grantee may provide relocation payments and other . relocation assistance for individuals, families, businesses, nonprofit organizations and farms displaced by an activity not subject to paragraphs (a) , (b) or (c) of this section. The grantee may also provide relocation assistance to persons covered under paragraphs (a) , (b) or (c) of this section beyond that required. Unless such assistance is provided pursuant to State or local law, the grantee must provide the assistance only upon the basis of a written determination that the assistance is appropriate and must adopt a written policy available to the public that describes the relocation assistance that the grantee has elected to provide and that provides for equal relocation assistance within each class of displacees. (e) reels. If a person disagrees with the grantee's determination concerning the person's eligibility for, or the amount of a relocation payment under this section, the person may file a written appeal of that determination with the grantee. The appeal procedures to be followed are described in 24 CFR 42.10. A low- or moderate-income household that has been displaced from a dwelling may file a written request for review of the grantee decision, to the HUD Field Office. (f) Responsibility of grantee. (1) The grantee is responsible for ensuring compliance with the requirements of this section, notwithstanding any third party's contractual obligation to the grantee to comply with the provisions of this part. (2) :The cost of assistance required under this section may be paid from local public funds, funds provided under this part, or funds available from other sources. i R-15 9/88 (3) The grantee must maintain records in sufficient detail to e demonstrate compliance with the provisions of this section. (g) Displacement. For the purposes of this section, a •displaced person' is a person that is required to move permanently and involuntarily and includes a residential tenant who moves from the real property if: (1) The tenant has not been provided with a reasonable opportunity to lease and occupy a suitable, decent, safe and sanitary dwelling in the same building or in a nearby building on the real property following the completion of the assisted activity at a monthly rent and estimated average cost for utilities that does not exceed the greater of (i) 30 percent of the tenant household 's average monthly gross income; or (ii) The tenant's monthly rent and average cost for utilities before (A) The date that the owner submits a request to the grantee for financial assistance that is later • approved for the requested activity. (This applies to dwelling units owned by a person other than a Federal or State agency, as defined under the URA) ; or (B) The date of the initial submission of a final statement under 5 • 570.302 (a) (2) (Entitlement Grants) ; the initial submission of an application to BUD by a • • unit of general local government under $ 570.426, 570.430, or 570.435 (d) that is granted for the requested activity (HUD administered Small Cities Program) ; or the submission of an application to BUD by a city or urban county under S 570.458 that is granted for the requested activity (UDAG) . (This applies to dwelling units owned by a Federal or State agency as defined under the URA) ; or (2) The tenant is required to move to another dwelling in the real property but is not reimbursed for all actual reasonable out-of-pocket costs incurred in connection with the move; or (3) The tenant is required to relocate temporarily and: (i) Is not reimbursed for all reasonable out-of-pocket expenses incurred in connection with the temporary relocation, including moving costs and any increased • rent and utility costs; or R-16 9/88 i (ii) Other conditions of the temporary relocation are not reasonable. 1 570.607 Bmployment and contracting opportunities. (a) Grantees shall comply with Executive Order 11246, as amended by Executive Order 12086, and the regulations issued pursuant thereto (41 CFR Chapter 60) which provide that no person shall be discriminated against on the basis of race, color , religion, sex, or national origin in all phases of employment during the performance of Federal or federally assisted construction contracts. As specified in Executive Order 11246 and the implementing regulations, contractors and subcontractors on Federal or federally assisted construction contracts shall take affirmative action to ensure fair treatment in employment, upgrading, demotion or transfer , • recruitment or recruitment advertising, layoff or termination, rates of pay, or other forms of compensation and selection for training and apprenticeship. (b) Section 3 of the Rousing and Urban Development Act of 1968 (12 U.S.C. 1701u) 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 low and moderate income persons residing within the unit of local government or the metropolitan area (or nonmetropolitan county) as determined by the Secretary, 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 (or nonmetropolitan county) as the project. Grantees shall adopt appropriate procedures and requirements to assure good faith efforts toward compliance with the statutory directive. BUD regulations at 24 CFR Part • 135 are not applicable to activities assisted under this part but may be referred to as guidance indicative of the Secretary's view of the statutory objectives in other contexts. i S 570.608 Lead-based paint. # (a) Prohibition against the use of lead-based paint. Section i 401(b) of the Lead-Based Paint Poisoning Prevention Act (42 U.S.C. 4831 (b) ) directs the Secretary to prohibit the use of lead-based paint in residential structures constructed or rehabilitated with Federal assistance. Such prohibitions are contained in 24 CFR Part 35, Subpart B, and are applicable to residential structures constructed or rehabilitated with 4110 assistance provided under this part. R-17 9/88 a (b) Notification of hazards of lead-based paint poisoning. Al (1) The Secretary has promulgated requirements regarding notification to purchasers and tenants of BUD-associated housing constructed prior to 1978 of the hazards of lead- based paint poisoning at 24 CFR Part 35, Subpart A. This paragraph is promulgated pursuant to the authorization granted in 24 CFR 35.5(c) and supersedes, with respect to all housing to which it applies, the notification requirements prescribed by* Subpart A of 24 CFR Part 35. (2) For properties constructed prior to 1978, applicants for rehabilitaion assistance provided under this part and tenants or purchasers of properties owned by the grantee or its subrecipient and acquired or rehabilitated with assistance provided under this part shall be notified: (i) That the property may contain lead-based paint; (ii) of the hazards of lead-based paint; (iii) of the symptoms and treatment of lead-based poisoning; (iv) of the precautions to be taken to avoid lead-based paint poisoning (including maintenance amd removal techniques for eliminating such hazards) ; , (v) of the advisability and availability of blood lead level screening for children under seven years of age; and (vi) that in the event lead-based paint is found on the property, appropriate abatement procedures may be undertaken. (e) Elimination of lead-based paint hazards. The purpose of this paragraph is to implement the provisions of section 302 of the Lead-Based Paint Poisoning Prevention Act, 42 O.S.C. 4822, by establishing procedures to eliminate as far as practicable the hazards due to the presence of paint which may contain lead and to which children under seven years of age may be exposed in existing housing which is rehabilitated with assistance provided under this part. The Secretary has promulgated requirements regarding the elimination of lead-based paint hazards in BUD-associated housing at 24 CFR Part 35, Subpart C. This paragraph is promulgated pursuant to the authorization granted in 24 CFR 35.24 (b) (4) and supersedes, with respect to all housing to which it applies, the requirements prescribed by Subpart C of 24 CFR Part 35. 10 E-18 9/88 (1) Applicability. This paragraph applies to the rehabilitation of applicable surfaces in existing housing ' a which is assisted under this part. The following activities assisted under the Community Development Block I Grant program are not covered by this paragraph: (i) Emergency repairs (not including lead-based . paint- related emergency repairs) ; 1 (ii) weatherization; 1 (iii) water or sewer hook-ups; ! (iv) installation of security devices; • (v) facilitation of tax exempt bond issuances which provide funds for rehabilitation; (vi) other similar types of single-purpose programs that do not include physical repairs or remodeling of applicable surfaces (as defined in 24 CFR 35.22) of residential structures; and - (vii) any non-single purpose rehabilitation that does not involve applicable surfaces (as defined in 24 CFR 35.22) that does not exceed $3,000 per unit. j1 (2) Definitions. - Applicable surface. All intact and 4 nonintact interior and exterior painted surfaces of a residential structure. Chewable surface. All chewable protruding painted surfaces up to five feet from the floor or ground, which are readily accessible to children under seven years of age, e.g. , protruding corners, windowsills and frames, doors and frames, and other protruding woodwork. Defective paint surface. Paint on applicable surfaces that is cracking, scaling, chipping, peeling or loose. Elevated blood lead level or EBL. Excessive absorption of lead, that is, a confirmed concentration of lead in whole blood of 25 ug/dl (micrograms of lead per deciliter of 1 whole blood) or greater. Lead-based paint surface. A paint surface, whether or not defective, identified a* having a lead content greater tban or equal to 1 mg/cm • (3) Inspection and Testing K-19 9/BB (i) Defective paint surfaces. The grantee shall inspect for defective paint surfaces in all units constructed prior to 1978 which are occupied by families with children under seven years of age and which are proposed for rehabilitation assistance. The inspection shall occur at the same time the property is being inspected for rehabilitation. Defective paint conditions will be included in the work write-up for the remainder of the rehabilitation work. (ii) Chewable surfaces. The grantee.. shall be required to test the lead content of chewable surfaces if the family residing in a unit, constructed prior to 1978 and receiving rehabilitation assistance, includes a child under seven years of age with an identified EBL condition. Lead content shall be tested by using an X-ray fluorescence analyzer (XRF) or other method approved by HOD. Test readings of 1 mg/cm2 or higher using an XRF shall be considered positive for presence of lead-based paint. (iii) Abatement without testing. In lieu of the procedures set forth in paragraph (c) (3) (ii) of this section, in the case of a residential structure constructed prior to 1978, the grantee may forgo testing and abate all applicable surfaces in accordance with the methods set •• out in 24 CFR 35.24 (b) (2) (ii) . (4) Abatement Actions. (i) For inspections performed under S 570.608 (c) (3) (i) and where defective paint surfaces are found, treatment shall be provided to defective areas. Treatment shall be performed before final inspection and approval of the work. (ii) For testing performed under S 570.608 (c) (3) (ii) and - where interior chewable surfaces are found to contain lead-based paint, all interior chewable surfaces in any affected room shall be treated. Where exterior chewable surfaces are found to contain lead-based paint, the entire exterior chewable surface shall be treated. Treatment shall be performed before final inspection and approval of the work. (iii) When weather prohibits repainting exterior surfaces before final inspection, the grantee may permit the owner to abate the defective paint or chewable lead- based paint as required by this section and agree to repaint by a specified date. A separate inspection is required. X-20 9/88 (5) Abatement methods. At a minimum, treatment of the defective areas and chewable lead-based paint surfaces shall consist of covering or removal of the painted surface as described in 24 CFR 35.24 (b) (2) (ii) . (6) Funding for inspection, testing and abatement. Program requirements and local program design will determine whether the cost of inspection, testing or abatement is to be borne by the owner/developer, the grantee or a combination bf the owner/developer and the grantee. (7) Tenant protection. The owner/developer shall take appropriate action to protect tenants from hazards associated with abatement procedures. Where necessary, • these actions may include the temporary relocation of tenants during the abatement process. The owner/developer shall notify the grantee of all such actions taken. (8) Records. The grantee shall keep a copy of each inspection and/or test report for at least three years. (9) Monitoring and enforcement. HUD field office monitoring —_ of rehabilitation programs includes reviews for compliance with applicable program requirements for lead-based paint. The CPD Field Monitoring Handbook which currently includes instructions for monitoring lead-based paint requirements will be amended as appropriate. In cases of noncompliance, MUD may impose conditions or sanctions on grantees to encourage prompt compliance. (10) Compliance with other program requirements, Federal, State and local laws. (i) Other program requirements. To the extent that assistance from any of the programs covered by this section is used in conjunction with other HUD program assistance which have lead-based paint requirements which may have more or less stringent requirements, the more stringent requirements will prevail. • (ii) HUD responsibility. If BUD determines that a State or local law, ordinance, code or regulation provides for lead-based paint testing or hazard abatement in a manner which provides a level of protection from the hazards of lead-based paint poisoning at least : comparable to that provided by the requirements of this section and that adherence to the requirements of 'this subpart would be duplicative or otherwise cause inefficiencies, BUD may modify or waive the requirements of this section in such manner as may be appropriate to promote efficiency while ensuring such comparable level of protection. • 1C-21 9/88 AI (iii) Grantee responsibility. Nothing in this section is intended to relieve any grantee in the programs covered by this section of any responsibility for compliance with State or local laws, ordinances, codes or regulations governing lead-based paint testing or hazard abatement. (iv) Disposal of lead-based paint debris. Lead-basil paint and defective paint debris shall be disposed of in accordance with applicable Federal, State or local requirements. (See, e.g. , 40 CFR Parts 260 through 271.) S 570.609 Use of debarred, suspended, or ineligible contractors or subrecipients. Assistance under this part shall not be used directly or indirectly to employ, award contracts to, or otherwise engage the services of, or fund any contractor or subrecipient during any period of debarment, suspension, or placement in ineligibility status under the provisions of 24 CFR Part 24. 5 570.610 Uniform administrative requirements and cost principles. The recipient, its agencies or instrumentalities, and 0 subrecipients shall comply with the policies, guidelines, and requirements of 24 CFR Part 85 and OMB Circulars A-87, A-110, A- 222, and A-128 (implemented at 24 CFR Part 44) , as applicable, as they relate to the acceptance and use of Federal funds under this part. The applicable sections of 24 CFR Part 85 and OMB Circular A-110 are set forth at S 570.502. 5 570.611 Conflict of interest. (a) Applicability. • (1) In the procurement of supplies, equipment, construction, and services by recipients, and by subrecipients • (including those specified at S 570.204 (c) ) , the conflict of interest provisions in 24 CFR 85.36 and OMB Circular A- 110, respectively, shall apply. (2) In all cases not governed by 24 CFR 85.36 and OMB Circular A-110, 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 subrecipients, or to individuals, businesses and other private entities under eligible activities which authorise such assistance (e.g. , rehabilitation, R-22 9/8 preservation, and other improvements of private properties or facilities pursuant to 5 570.202, or grants, loans and other assistance to businesses, individuals and other private entities pursuant to 5 570.203, $ 570.204 or 5 570.455) . (b) Conflicts prohibited. Except for the use of CDBG funds to pay salaries and other related 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 decisionmaking process or gain inside information with regard to such activities, may obtain a personal or financial • interest or benefit from a CDBG assisted 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) Persons covered. The conflict of interest 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 which are receiving funds under this part. (d) Exceptions : threshold requirements. Upon the written request of the recipient, HUD may grant an 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, accompanier; 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. In determining whether to grant a requested exception after the recipient has satisfactorily met the requirements of paragraph. (d) of this E-23 9!88 • section, BUD 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 of low or moderate income persons intended to be the L,eneficiaries of the assisted activity, and the exception will permit such person to receive generally the same interests or benefits as 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 in 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; (6) Whether under 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. S 570.612 Executive Order 12372. (a) General. Executive Order 12372, Intergovernmental Review of Fed— eral Programs, and the Department's implementing regulations at 24 CFR Part 52, allow each State to establish its own proi7ess for review and comment on proposed Federal financial assistance programs. (b) AFplicabiliy. Executive Order 12372 applies to the CDBG Entitlement prograa. ard 'the UDAG program. The Executive Order applies to all au: ivities proposed to be assisted under UDAG, but it applies to the Entitlement program only where a grantee proposes to use funds for the planning or construction (reconstruction or installation) of water or sewer facilities. Such facilities include storm sewers as well as all sanitary sewers , but do not include water and sewer lines connecting d structure to the lines in the public right-of-way or easement. it is the responsibility of the grantee to initiate the Executive Order review process if it proposes to use its CDBG or UDAG funds for activities subject to review. K-24 9/88 •`"`"'a Handbook 1300.19 U.S.Department of Housing and Urban Development '''�+oc•• Office of Community Planning and Development • Program Participants and Departmental Staff June, 1983 Grants and Agreements with Institutions of Higher Education, • Hospitals and Other Nonprofit Organizations ( A Reprint of Office of Management and Budget Circular A-110 ) (Revised ) E 4t2 T -D CF FO Gstnbutuon W3.1.R.I.R.5.1.(Speciail I = ilnn_, (1 . . FOREWORD Circular A-110 applies to Federal agencies that administer grants to institutions of .higher education, hospitals and other quasi- public and non-profit organizations. Its provisions also apply to subrecipients performing substantive work under grants or contracts that are passed through or awarded by the primary recipient. ( If the subrecipient is a State, local government, or Indian Tribal government, the subrecipient is required to fellow the provisions of Circular A-102) . The agencies, for years proceding this Circular, had imposed varying and conflicting requirements on the above grantees. The purpose of A-210 is to streamline and make those requirements uniform. Headquarters personnel may direct their questions on the material in the Handbook to the Office of Procurement and Contracts. Field personnel may direct their questions to the respective Regional Contracting Officer. '(C • IT . . 6/83 1300.19 1-1. MAJOR SUBSTANTIVE AREAS COVERED BY THE CIRCULAR. Each of- the following subparagraphs corresponds to an Attach- ment to the Circular. a. Cash depositories. Institutions may use their regular banking procedures without a requirement - for a separate bank account. The only exception would be where the letter of credit method is used and checks are presented at the bank for - drawdowns (checks paid method) . Use of minority banks is encouraged. b. Bonding and insurance. The recipient's normal requirements for bonding and bid guarantees for construction are sufficient on similar contracts. On contracts or subcontracts exceeding $100,000, recipients must secure a 5 percent bid guarantee, a 100 percent performance bond and 100 percent payment bond. c. Retention and custodial requirements for records. Grantees may follow their own practices as long as they provide for retention for 3 years, and access for audit and public examination. If any litigation, IC claim or audit is started, the records shall be re- tained beyond 3 years. The retention period starts when the annual or final expenditure report has been submitted or, for nonexpendable property, from the ' date of final disposition. d. Program income. States are not held accountable for interest earned on grant funds. All other recipients must return such interest to the Federal Government. Other income attributable to the grant . should be used either 1) to increase the scope of the project, or 2) be de-ducted from the total project cost for the purpose of determining the -amount in which the Federal Government will share, or 3) used to finance the non-Federal share of the . project. e. Cost sharing and matching. Standards are establish- ed for determining the matching contribution. It applies to grantees and subgrantees alike. It may consist of charges which are project costs as set forth in the applicable cost principles, including i C . . .. • -1- 6/83 I 1300.19 • dash and "in-kind" contributions. In-kiltd contributions must be necessary and reasonable, clearly identifiable from the grantee' s records, properly valued and not claimed in any other Federal program. Specific guide- lines are set forth for calculating the value of in-kind • services provided by volunteers and contributions of materials, equipment, buildings, land and space. f. Standards for financial management systems. Standards are prescribed for financial management systems used for grant supported activities. Federal agencies will not impose requirements other than for current, accurate, and complete disclosure of financial results; adequate identification of source and application of funds; effective control and accountability for funds and property; comparison of actual and budgeted amounts; minimizing time elapsing between receipt and expenditure of funds, and financial and compliance audits, not less • than 2 years. g. Financial reporting requirements. This attachment to the Circular defines a series of financial terms such as unliquidated balances; outlays, etc. It describes four forms that replace a great number formerly used by the agencies. 1. Financial status report - To report status of funds for all nonconstruction programs. (SF 269) 2. Federal cash transactions - To monitor cash flow when funds are advanced to grantees by letters of credit or Treasury checks. (SF 272) 3. Request for advance or reimbursement - For all non- construction programs when advance letter of credit or predetermined advance payments are not used. (SF 270) 4. Outlay report and request for reimbursement - For reimbursement on all construction programs. (SF 271 ) h. Monitoring and reporting program performance. Reci- pients are held responsible for monitoring programs to assure that time schedules are met and that perform- ance goals are being achieved. Periodic reports of progress, documented with quantitative data When 6/93 -2- • 1300.19 ' possible, will be required. If goals are not being met, or costs are exceeding budget, these conditions must be noted and explained. Between reporting dates, grantees must report any unusual conditions or event that will affect _ budget estimates or achievement of goals within the - time period. • 1. Payment requirements. Procedures are described for minimizing the time cash is held by the grantee. A letter of credit will be used for all grants, except construction grants for which it is optional, when there is a continuing relationship of at least 12 months, when the payment for a year will exceed $120,000, and the recipient's financial management system meets Federal •standards. Funds will be advanced to the grantee when the annual amount is less than $120,000. The reimburse- ment method will be used when the financial manage- ment system of the grantees is not adequate. J. Revision of financial plans. Procedures are pre- scribed for Federal agencies to follow when grantees need to deviate from their original financial plans. For nonconstruction grants, prior Federal approval for budget revision must be obtained only when: 1. There is a change in the scope or objective, or a need for additional Federal funding. 2. At the option of the Federal agency, the cumula- tive amount of transfers among program, functions, or activities exceeds 5 percent of the total budget for awards in which the Federal share exceeds $100,000. When Federal funds are expected to exceed needs by more than 5 percent of $5,000, the Federal agency must be notified. -3- 6/83 • 1300. 19 k. Closeout procedure. This attachment defines • the few terms relevant to the closeout of a • grant agreement. • • The attachment also requires all relevant Federal agencies to establish closeout procedures. It requires the sponsoring agency to make prompt payments of remaining allowable costs under the grant and to get all closeout reports from the grantee within 90 days. The agency may have to make adjustments up or down reflective of the final reports. The grantee must refund immediately any balance of unencumbered funds. 1. Suspension and termination. Grants may be termi- . nated for cause or by mutual agreement. This attachment defines the few terms relevant to the suspension or termination of a grant. Further, it requires agencies to define procedures for a non-standard grant closeout. This would systematic settlement, whether terminated for cause or convenience. m. Standard application form. This attachment publishes the standard form to be used in apply- ing for assistance. It is the SF 424, the same- as that used in Circular A-102. However, agenc- ies may require use of the SF-424 only when apply- ing for grants under programs covered by Part I of the Office of Management or to report to States on actions taken on applications reviewed by them. n. Property management. This attachment sets standards governing the use and disposition of federally financed property. The grantees' property manage- ment procedures must provide for accurate records, bi-annual inventories, adequate maintenance and control and proper procedures for disposition of the property. 6/83 - -4- • 1300.19 Real property must be used only for authorized purposes and returned to the Federal Government when no longer needed. The grantee may take title to the property by paying the Federal agency for the fair share of its remaining value. o. Procurement standards. In general, recipients may use their own procedures in the procurement of goods and services, including contributions using Federal funds. Recipients must maintain a code of standards of cond- uct and must provide for open and free competition. 1-2. PARTIAL EXCLUSIONS. Certain following areas may not apply to all CPD programs; subparagraphs 1-1 d, e, g,h, i,j , k, 1 and m. Some subparagraphs may only apply to HUD as the grantor agency. 1-3. MINIMAL REOUIREMENTS. Minimal requirements are established for the solicitation of goods and services including the use of small and minority owned. businesses and the type of procuring instrument used. Some minimal requirements are established for procurement records and files, including cross cutting provisions in contracts, e.g. , adherence to the Davis-Bacon Act, Clean Air Act of 1970, Federal Water Pollution Control Act, Executive Order 11246 "Equal Employment Opportunity," etc. 1-4. USE WITH HUD PROGRAMS. The A-110 Circular is incorporated into this Handbook as Attachment A. Use of the Circular is specifically requested by the Community Planning and Deve- lopment Monitoring Handbook 6509.2 REV-3, issued as part of accountability monitoring. Accountability monitoring is part of HUD's efforts to combat fraud, waste and mismanage- ment concerning administration of its community development and housing programs. The OMB Circular A-110 should be used in a positive manner to improve. management of Federal program dollars. • • • .-5- 6/83 1300.19 1-S. EXCEPTIONS. a. The A-110 Circular doss not apply to grants, con- tracts or other agreements between the Federal Government and units of State or local govern- . ments covered by OMB Circular No. A-102. b. The Office of Management and Budget may grant exceptions. However, in the interest of maximum uniformity, exceptions will be permitted only in unusual circumstances. Attachment A: OMB Circular A-110 Grants and Agreements with Institutions of Higher Education, Hospitals and Other Non-profit Organizations. • 6/83 -6- vola FRIDAY, JULY 30, 1976 V,\VES Of 'ac :� rye •• s wring" yf'1 kw" e 934• 0 sto PART II: 4 OFFICE of MANAGEMENT AND BUDGET GRANTS AND AGREEMENTS WITH INSTITUTIONS OF HIGHER EDUCATION, HOSPITALS, AND OTHER NONPROFIT 7 ORGANIZATIONS t. = A-110 tip.• Uniform Administrative Requirements ax“(Br 32016 NOTICES OFFICE OF MANAGEMENT AND general 'venue sharing. loans, loan lo..leuponelbititiei—Agencies Sums- . BUDGET guarantees.or insurance, and (e) direct atble for ae ininisterint programs that to- IC4etilar No.A-1101 payments of any kind to individuals. solve grants and other agreements with b. The term 'recipient" Includes the recipients shall Issue the appropriate GRANTS AND AGREEMENTS WITH INSTI• following types of nonprofit organize- reguiatfoas accessary to Implement the TtfiIONS OF HIGHER EDUCATION. dons that are receiving Federal funds provisions of this Circular. All portions HOSPITALS. AND OTHER /10NPROFIT from a federal agency or through • .of such regulations that tnvslve record- ORGANIZATIONS State or local government: keeping and/or reporting requirements tin/tone Administrative Requbernenb Public and private institutions of high- subject to the provisions of the federal Just 1. 1272. er education; public and private hos- Reports Act and O? Circular A-40 pitats; and other quasi-public and pH- must be submitted to OMB for clearance To the beads of executive departments vale nonprofit organisations such as (but beimre tieing introduced Into use. Upon and en/bits/meats. not limited to) community action agen- request all regulations and instructions Subject: Uniform administrative re- ties research institutes, educational as- implementing this Circular shall be qulrements for grants and other agree- iodations. and health canters. furnished to the OIDce of Management meats with tasitutlons of higher edu- The term does not include foreign or and Budget. Agmcles shall also deslg- cation, bosbitaLs, and other nonprofit International organizations (such as at an ofilclal to serve as the agency Organisations agencies of the United ?cations) and representative on matters relating to the 1. Purpose—This Circular •promul- Government-owned eootratter operated Implementation of this Circular. The Bats standards for obtaining censisten- facilities or research centers providing Dame and title of such representative e7 and uniformity among Federal agen- continued support for mission-oriented, shall be furnished to the Once of Mao- els in the administration of grants to, large scale programs that are Govern- sgement and Budget not later than Au- and other agreements with, public and meet-owned or controlled, or an de- gust 30, lg71. private Institutions of higher education, signed as federally-funded research and ll. Inquiries. further Wormation public and private hospitals, and other development centers. concerning this Circular may be obtained quasi-public and private nonprofit or- 7. Requests for eseeptiont—The Ofike by contacting the Financial Manage- pnlrations.This Circular does not apply of Management and Budget may grant meat Branch, Budget Review Division. to grants.contracts,or other agreements exceptions from the requirements of this Omce of Management and Budget. between the Federal Government and Circular when exceptions are not pro- Washington, D.C. 20503, telephone us- eimits of State or local governments hiblted under existing lava. =1123. Covered by Federal Management Cie- However, to the Interest of maximum Jams T.Lune, War 744• • uniformity. exceptions from the re- Director, 3. !dative date—The standards In qulrements of the Circular will be per- J.vr.cwsanR A. ctr..a No.A-110 the attachments to this Circular will be mined only In unusual cases. /gentles applied as soon as practicable but not may apply more restrictive requirements cos saoarreast later than January 1. 1277. to a class of recipients when approved by 1. Thu ettecbmeat sets torch standard. 3. Si pe rse Inch—This Circular res- the O»;ce of Management and Budget. governing the use of banks and other is- einds and replaces parts III and TV of g. Atlarketentr—The standards pro- letitutions as deposttoris of roods ad.t•asd . the Appendix to Federal Management mulgated by this Circular are set forth under greats and other areement.. Circular 73-7. Administration of college In the Attachments, which are: • r aeept for situations described is para- and university research grants. graphs 1. 4, and 1, so Federal spoaaortag Attachment A Cash depoaltorte. New"shall: 4.Policy intent—The uniform stand- Attachment a loading and tasuraaet. a.Require physical segregation of oath de- arts and requirements Included in the Attachment C ReteoUth and custodial le- positories for funds which are provided to• attar ments to this Circular replace the qutremeata for teoeda. r.cionmt. varying and often conflicting require- Attachmeat D recruit,tae®e. I g tabltsb any altgtbuity reelutrsmeate meats that have been Imposed by Fed- Attachment ! Cost tb.rtag and matching for cash depositories for funds which are pro- enactment teal agencies as conditions of grants and Ahment P tltaadards for lnanclai man- Tided to a newest. other agement systems. a A sepiase bank a000usi shall be required agreements with recipients. Attachment 0 Priaeeta) reporting require- when applicable letter-of-credit agTaemen0 1. Appheobifify and scope—Faeept as mints. provide that arswelownt wit/ be made when provided below, the standards promul- Attachment I Monitertag and reporting the recipient's chocks are presented to the pied by this Circular are applicable to pr Kra perlormase. bank for payment. W Federal agencies If any stattrk ex- Attachment I Ps meat r•equtreneesta 4. Any moneys advanced b a recipient pm:slpressly prescribes policies or specific re- Attachment J Recision of linnets] plans. which are subject to the antral or mulls. ye prescribes that differ from the stand- Attachment K Closeout procedures. tion of the United states or any of Its°Doers. . Ards provided that diffe the provisions the stand-d- Attachment 1. Suspension and termination .game or employes' (public moneys as eke- art:white shall govern. procburea. toed is Treasury Circular No 176. as Attachment M Standard form for applying amended) must be deposited in a bunk with The provisions of the attachments of for federal amistase. Pederal Deposit Insurance Corporation this Circular shall be applied to subre- Attachment N Property management stand- (FDIC) insurance coverage and the balsam elpients performing substantive work atdt. esc edlag the FDIC coverage must be •ol. under grants that are passed through or Attachment O frocuremeat standards. laterally assume. awarded by the primary recipient if such 3. tsceptionr for certain recipients.— 5. Consistent wets the national goal et subreciplents are organizations de- Notwithstanding the provisions of pars- expanding the opportunitis tot ace syty scribed l bustaeat enterprises, recipients and sub- paragraph 1. graph '1 if an appb'cant/reeipient has a recipients than be encouraged to use miaow- [• Definitions. history of poor performance, is not II- my banks (a bask which is owned at least 20 a.The term "grant"means money or nancially stable,or Its management sys- percent by minority group members). property provided in lieu of money paid tern does not meet the scan lards pre- armatures•—Cscsira No.M110 or furnished by the Federal Government scribed in the Circular.Federal agencies to recipients wider programs that pro- may Impose additional requirements as borrows aera oosmaawes vide financial assistance or that provide needed provided that such applicant/ 3.Tab attachment sets forth boading and support or stimulation to accomplish a recipient is notified In writing as to: lsturuna requirements for grants and ether public purpose. The term "other agree- a. Why the additional standards are speements with recipients. No eater hood._ • meats"does not Include contracts which being imposed; tag and Insurance requirements shah be LID. are required to be entered Into and ad- b what arrective action Is needed. p0ied other than those normally required by ministered under procurement laws and Copies of such notifications shall be the 1e'alpteat. !. incept a other eme requtr+d a law,• regulations. Grants and other agree- sent to the Ofi1ce of Management and grant or other agreement that requires the Monts exclude (a) technical assistance Budget and other agencies funding that contracting (or tubooauactlag) for gee. programs,which provide services instead recipient at the same time the recipient etntetion or facility tmprovemteriu shall pro- of money. (b) assistance In the form of is notified. Fide for the recipient to follow Its own es- . ploftat elon/ia. VOL. 41. NO. I41--TIlDAtr. JULY 30. 11T6 —1—. . • NOTICES 32017 • • Best r1.tlj to bid gueraatsa,go?. f. Lapieat erg.atsatteas should be sue ia.klad seetrlbutlms made y recipients r manes bade. sod payment bade wakes Soloed by the T•dertil .posoortsg glory,• iubr•clpl•SY (a►referred to is parag*.pb s the.eatrvctloa nowt or subooaYaet ss• If they se haw. to Substitute deaoalm es the boor cWcc )or third parties is err. Midi •100,000. For Shoo contrsCts or cub• sopa is lieu of on ttesl records. Idyl"' _ jai require. eentreiY tswe pt 4101.000. to ssad quest of songs records so shell b sus. mesh tecbm•at .Loo er abiuh's emir» for the apaq may wept the osI p policy rgvUemolo of Lis gnome provided the Cody from recipient arpaisations when It melueuoa of la•kiad soavtbutloae rode by 1p d•n7 gooey has Bode • determination detonable fast the reoordk power bap third parties,sad suppiem.ou the gtidaaee • Ibis the Oover. •at%lowest II o414511511 Mrm »toatl011 WW1 iewe•a. Is order to emf�h s &jem� slaw. protettsd. . . • d•twmiuy+mea shall pondsoesagl.d.ae s a7•mete arraajv a i22y poasor•d re•earcb. 0..a innate.the minimum>ei with reo.lpl•at organisations to retain say I. The• fetbesag Widths. apply Lsr the be r fames: not pager Moods that •» seatbauou.ly seeded let ►urpw of tale.ttrcamrat: b.A NA rars�w> fafret tw. • Prefect eats.-Project sorts are all Ai. Neat M K p+ree+st •/ os rue.— q.Tb•bud of the P14115l epoaeorlag ages• Iotnbl• solo (as 1st l.rta is tae appUeable ,M "►M of ton i d shall Sensed Of I led had tae Comptroller O5aeral of the Vatted T.e.N cent priaelptl.) iseur»C by I mild. sbsct. esat era g •ble bad. moused Mato,or ear of their duly authorised»pre. sat sod the ego of the is•kiad ewD55u. Wok. et ,that al ewe• Sa SM'the t 14• osoLUvs,abW have.come to any peilomt bons sssA1 by tae nelpuat .f :alit Perth* err viU.upon•bid sa� be hid.a yid broke.decorous papers.had records of the Ss •ceomplt&Llag to obj•ctt.s of Qs Rat sash ettirottua)afeeumspU Y may to n. retpleat srpnbastion ad that: *Were- or Mho eCMment 4WTtaL the P54141 51 pry "Siesta to muse audits. SsamsaaUos, ea- WW1 Paned• tuttel"'this the time'moiled. Y had trsaasrbpts. b.Cat Owes,sed etelcarsy.•-Is parrot. • • b.A pre/orseace bon[ Co ibc poet of LAS "VI sent shoring has matebbag repret•at ta.t 00 or•f e/ she seettv.re Ile Valese othervtss required ll less>A rtba r Pry)."sad er arching will set Ic et yis.-ta !err pr' !royal epoa.or1L .ie Ct -,A tl05 VItb I bond"Y out tire ni. Wtttbns en recipient or5.aIatioas that wilt the Ttdwal Oo•asasat. LlmsSt a l Sb I oont t e secure tttl• Is.nl1 55U5•car.td the records et recip155% s.CaIR eosbKb51tsesa-CMb maatbutmas Omen% cif all the eootrectorb 0►Ugetioas WrpstpeeUona ibis en peci seat is a pant reprerrot t•reelpt.at'i esab 0511117,larhW• A pyre ens hood w the pert ti Use new• or M('e°meat .leapt 'ben the spore as. 151 the euUs7 of mosey .eatrtbuted to the II.gve55er for tees pevev+tt y U►S ...teen d•monetrato that such record must be kept eectptsat y soa•7'rd.n1 third forum. —A s m�t at bed•'Y ea•esecvtad p boa di el r punuhss_ hers the ',lotus et Sutbas matelot the ego set so sapems. yeesi ee re wire I Goat et b wore rep laformsU.o Act (b Ol+.C.Lit) if t•records wlbutleSe provided y taw rsetpiset sod Stilt r required by Ito et all psreoas sup, hid blessed he the T•deral speneheuth soo•3hdersi third }arts.. Only Wb.a sue dying labor sad osohnel is the ss•eutbs st tborlsed by Pederst 1tglalation,may property Se wort provided for In t•minima. purhw0 Witt federal tusd be seaadeed 1,where the!Otani Oov.rameat guwras• teteesteswt D.-Cuomo No. •-110 sr the recipient*. Is•kind .00trtbuUeas.U- lm or Swum the repayment of mosey wtam.te SsrOSSO :tad eoatributlone may be is the*of of borrottd by the recipeent. the P.4sn) sbergs for n+1 property sod 5oa�lad- aeacy. al its dt+crstioa. m17 t.qutredade• I. /Wm: 0p.515,15g •:•ant• email apply able p.r.onal prvpsrtyr, and tan • ue •f busts town•be lasursno•U t•wpm.. t••Mood.rd.set fortis to this.ttaobm•at Is goods sad orrice' Crotty hasStlag sad aid neurones requinmests of the redptsa raulitpi recipient orgestatbas to escouat epeet$ea117 id•atlisable le the prefect R are sot deemed .dequste to protaet the Is• for progP+m looms related to projects progra` tent of the riders,Ooveramsat. Jousted to whole or is part with Tsdersl I. Oeaenl guidrUss for ..mpuitag Beet 4.The T•41r11 epea.oniai e400e7 11547 r• toad. Trog+sm Scones represents grow la• sharing or matcbiog ark as fellow: quw ed515111 fdolltj bad Oovasg• wbere loose earned by t• recipient from the led. a. Cot sharing or matching asy orient the r•clpl•st bee se 0511a151 aid the hoed 15 orally supported eettvttim Nob ea:stae on. d: seeded ee protect to Oo•eraoseath interest. elude lutenist wood ea &dream sad asp (1) Caeris Saswred by the Impish as S. Where bad we requwd is to Mill* Seclude, but will sot be limited to, looms project sari. (Stet 111 charges require lath Mons theorised shove.the hooth still bi eb• from.roles fees,ale of eommod.wes,Snage outlays by the rectpleat during tae prepet Yts•d from sempasls bolding sert3Dt+tes of erpow ens. slid moos oa pewits had poked. seemplas en depreciation sad uea svtberlip ac acceptable sureties (11 CPO s pNigtrts. lefrlt,:effi Charges for Wittig" sad squipes.at.) flii). 1. tourist earned es sdvasees of ?idersi (L) Projeel Bost. dsasesd Wit Auk us- Atvaetctarrt Cr..esestoe pd. Ari10 turd arell be remitted to the Pederal 15*a5y Vibutsd or boosted to the retiploat by slam *wept for Interest sensed en areae.a to aea•P•de, 3 public Ipacis 555 lastltuUoa16 asrssnsos airs ttRSrreesat. Wvsssarrte POI Slow Of Iastrum•atalitfa of a State se pro- had prints srpasaUms had Ind flIuds. WOWS triSed by Q. tatoriovram•atal Cooperstroe Dad Act of lade (Public Lae Ott-ITT). (1) Project sorb rrp^natd by Burden I.This sit•ehmsat 64 torte record rotes. 1. Procoorle from the ego of teal had per. had teal sod personal property.at was'bus- tled rkqulr.a+lats for gvaats and ether•gee.• maul property either provides by ohs Tod. of. footed by ether soa•Peden3 public SKIM with reefpiseC. !sees) spoaserlag ersl Ooveramsat er purcba.ed to obeli or is 151S5111 esd ta.tttutbas. 154 priests ergs• sgeaela shall sot Impose sty record »tea• pan trill Psdual fund,eba31 be handled Is oust15ns 114ladividuai/. ties t•gvbem•eii upon 1141040U Otte:tb•a •scordsses with Att.ehmeot it le this ear- b. All STSUtbUUeas. loth slab W II" those dowtlbsd Mlew. cuter penalising to property management. bat aball bs eeceptsd•s part of the reyi- S./inept for paragraph 1.this attachment d. Vaal the •5r•emeet provides ells. sot's amt ahartag sad memblsg When ouch ales apples to eubr•eiplsaY r "tune Y web, recipt.et *bail be•o so oblgetton is .onufbuUoas meet ail el the f.U5wIa4 is per►grepb II of the babe circular. the Pedsrsl Oov.rameat with respect is salters: S.Ptseacii record&supporting documeate. reyaltts rm.!'"ee 1 reeuri of mpyelgble•s p) are ',ribald, less tea teclptsstl e tstlotleat t•eorda,and eft other records peril• priests produced under the rant or other moms; f ist to is 54'sem•nt slog)be Petaia•d for a grossest (u• pere.repb I.Attach:mat 11). (1) An set 5552515.4 es ee1itsib5Ue51 Len ported of three yews. wit tae IOUowm5 L. All ether peons income eased during $17 other bdersU7♦.e1lted Pref sm qualifications: to project period .bell be Malted by the (L) At•a.oes&17 154 nr.oasbie we prep* S. it thy litigants.shim or Swath i started tKtplest sad. la semrdaae• with the gloat it sad s5ct.st seaompuanotot et prof m bsfene to aepintisc of t•Layer pealed,to er ether groeseat.shall be: objectless; Laords shalt be Matted until all Utiptloas. to Addeo he evade eomattttd to Ye prej• (4) An type of&w its that Would he 63. 14•1151.or built Sadiap 31.51•155 the records set by the penny epoaaormg moo v-- iii bvnbl•u .further sot pall►y tbs !wive, Oo•s'a• b. Records for n.asrp.adeble property a5• eilglbl•prorum.bjscu•s; meet soda soother sa.rtaaa •grestoost `uSred TUb prdensl load shall be retained 1. L•s•0 ts Saaaes the sos•Pideret abate (wasees the ag*ermeat Is authorised by red. fit L years after its fra1 dupdtUes Of the project when approved by the Teder•3 erg LW to be used fa neat thanes or match. I. Weis record are treasf•rred tom assls- oppycrfag money;Of OM);. Wass by the Peden!epeseoriag 551557.to e. Deducted from the total preject seen el art provtasd ter la tae approvid bate• S•ye*a ntsattea requlns+eat I sot applies- b d•termists1 to set sots ese which us b when required by the Psderi weary;has Ids 1.the nolplsst. Tedersl share of sots elil be beard. (1) Coshes le •ts prevloto5s of Hlo 4.The retention period ote:ta from the atteebmest. Otte of to eu►osimioe of the foal.sped). Afrocsemrt 11.-.Cmcir..s NS.d-111 4. Velum to rectpi•et i -kbad easww- ewe reperl se. ler greats sad ether emir sort moms runs sa trt:>mt• Ment w31t be .rrabltab.s in .emrdales with Nests that w reaee•0 'snugly.from the te..rpltabl.met priecipla. d•t. of Pas Nbmt.sbs Of ib. snood 1.Tits sttaeamsst arts forth criteria ash S. $pectic proredure•for the ttctpl•5ts b dasacisi slit MOM procedures for the Worthing of cosh sad •sbllahbag the value se la-kind Ssatrtbs- • . N0ttU1 eating, VOL II, NO t41•-St10AT. Wit IS. lnd -2- • . 3201$ . NOTICES $reams fresh aoa•hdsral third parties are an a Volunteer services must W documented linsnelal bansctbns,as wen as eom►pttanee . forth below• and.to the extent feasible.supported by the with the terms and conditions of the Pederal • Felrateen 01 rerunrery spencer—Veins. earns methods •wd by the recipient for Its grants and other afreerlent' such tests ter winces away be furnished by'professional employees. would include an appropriate sampling or and technics! personnel. consultants. and b The basis for dttermtning the valuation lederal &greenness Torsmenattons will be Other Milled and unskilled labor. Volunteer for personal services. material. equipment. conducted with reasonable frequency. on a Writes May W counted as cost,eharine or burnishes and land must be documented. tonttnutng basis o► at scheduled intervals. • matching It the service Is an integral and Avtaessrstes Ir.--CtaetRwa Nos.4-110 K usually annually,but not less frequently than aessary part of an approved program. retry two leas The frequency of these es- It) *ate,for t'ohinfeer arrvwti.--Hates for Orampaase tea Rrralretab saaaetaselet imitations shell depend upon the nature. volunteers Mould be eenatsttnt with Mdse dtrsrsers star and tat compiestty Of the setristy.That paid fee dinta/ work to the reetplutt s seemtnatlons do not relieve Peden': areae►ea o►gantastton In those Instance/ten which the 1•73,1,attaehmtnt preserlbea atand►rds for of their audit responsibilities,but may affect tequfrsd stU4 are not found in the recipient Federal management systems of guests. the frequency and scope of fuel) audits. organisation.rates should be consistent with Federal sponsoring agentls saws Dot impose I.A systematic method ro assure timely and Meese paid for similar sent In the labor mar• additional standards On retipisats unless spa- appropriate resolutiOa of audit $.ding sad ▪ Set is which Q►e recipient Competes for the CifSctl2y provided for in the appllesbie eta• recommendations Sind s!ounces lare)retl. tufts te.g•the Joint lending Slmpltdcatton 7. Primary recipicoto soon require sabre- (i)_Telrwtesrs ern ied. by etRrr agenf- Act.P.i. 33410) or other attachments to this efpient (as cleated en paragraph d of toss sneerlWhen an employer other than the circular. omput er. Federal sponsoring ages• basic circular) to adopt the standards in recipient furnishes the "mien of an ern' elm are recipients in to mate suggestions sad paragraph 2. above eseept for the esquire- • ploys*,wale Services shall De valued at the assist recipients In estbg or improving merit in subparagraph Se. regarding the tee smployee'a regular rate of pay alued stve of financial management requested.systems when such as- of the letter-of-a+edtt method and that part statanct 2s needed or requested. of subparagraph regarding-fringe benefits and overhead costal provided grip »r. reprdtn reporting these Service are in the same stall for which • r it provi fifor: l tnanagemeat Owe- forms and frequencies pre cribed is Attach- the employee is normally paid. veins aha11 provide tor: menr.0 to this chestiest. b. Valrattos Of donated. erptadshim per. S. Accurate, current and complete dteSlo- senar p ope*tr—Donated. expendable per. sure of the narietsl results of etch federally Arm-sawn O.-Camera Po.A-110 aortal oat includes such items as es• aponwred project or program to aOeexdaaes miser W.as1►ixII7X%asereaaaxesrta yW p y with the reporting requirements set forth in vendable equipment. office supplies. labors- Attachment 0 to tots circular.When a yea. 1.This attachment prescribes uniform rt- terw, supplies or workshop and elssreose oral sponsoring agency requires reporting on porting procedure for recipients to: sum- supplies. Value aasesed to expendable per• an *must basis. the recipient shall set be manse expenditurs nude sod Peelers!farads Weill properly included In the cost or match- required to establish an accrual accounting unexpended for seek award.report the mots bog Hurt should be reasonable and should system but shall develop ouch accrual data Of Federal cash advanced, request advances sot eased the market value of the property for Its reports on the bests of an.analysis of and reimbursement when the)ettar-oftrodIt at the time of the donation. the documentation on band. method is sot used, and promulpts aton- es e Palrarion OJ doaeted. aenerbendebit is y icords that Identify adequately the and forms incident thereto. • Prime property. brifdenps• Ind bred M source and application of funds for federally S.The following dehulttoas apply for put- We fheve.!. sponsored aettvltis These records shall eon- pees of this attachment: 11) The method used for charging feat lain information pertaining to redeye a Accrued sspeadilrrs'-.Accrued ea- Muth; or matching for donated nonce- swards, authorizations. obligations. unoblt• pendlturs are the charges incurred by the ' ridable personal property, building set th and gated balances as , outlays, and Income. recipient during a given petted requiring the ,and may differ according to the purpose of a Effective control over and oecountabUity' provision of funds for: (I) goods and estate the grant Or other agreement as follos•s: for all funds.property and other besets. Ps- tangible property received. (3) service pee- -AS) If the purpose of the grant or Other eipients shall adequately safeguard all such formed by employees.contractors.eubreeipi- agreement Is to assist the recipient In the asset& and shall assure that they an used tote, and other payee. and. (3) Otber acquisition of equipment. buildings or land. solely for authorized puniness amounts becoming owed under programs for the total value of the donated property may d Comparison of virtual outlays with bud- which no current servies or psrformsase Is .be claimed as cost sharing or matching get amounts for each grant or other agree- required. lb) If the purpose of the agreement is to went Whiners? appropriate or required by b.deemed income—Accrued income Is the support aeuvitie that require the use of the rederal sponsoring agency. financial la- sum of (I) sarnirp durtag a given parted equipment. buildings or land depreciation formation should be related to performance from II) services performed by the rscipi- . Or use charge for equipment and buildings and unit cost data tat. and Ili) goods and other tangible May be made The full value of equipment or a Procedures to mtnfmtse the time elnpstng .property delivered to purchasers, and (2) Other capital assets said fair rental charges between the transfer of funds from the VS amounts becoming owed to the recipient for for land may be allowed provided that the Treasury and the disbursement by the reap• whigb no current services or performance Is • Pederal agency has approved the charges tent. whenever funds are advanced by the required by the recipient. If) The value of donated property will be Federal Oo%ernment. When advances are e. redrye) Prude authorised—Peden) d etermined to accordance with the usual mad.by•letter-of-credit method,the recip• funds suthorised are the total amount of oceouattng policies of the recipient with the tent shall make draw dotes as close as poi- Federal funds obligated by the federal Oev• • following quslifesuona: Obit to the time Of mating disbursements. eromeat for use by the recipient. This It) laud snd, buildings—The value Of f. Procedures for deterrnlatng tbs men- amount may include any authorised sarre- eblenes'.alloa•ability and&notability of costs Over of unobllgated funds from prior aaeal donated land and buildings may not exceed ' . its fair market value.&t the time of donation to accordance with the provisions of the ap- years when permitted bw low or agency to the recipient as fstabllshed by an iode• biteable Federal cost principles and the terms regulation. pendant appraiser leg. certified teal prop- tine grant or other agreement. d. in.fund eontrtbufsons ia•lind ma- rred appraiser or OSA representatives) and g Aceounting retards that are supported .trlbutierj are defard In Attachment a so certified by a responsible Official Of the by source documentation, this circular. tsclptent. it tsaminattons In the form of audits tr e. Oblefereolu- Obligations are the (b) Ifone:pvndable prisoner ro,erty— internal audits Such audits shalt be made amounts of orders placed. contracts and The glue of donated noneaptndabie persona! by qualified individuals who are sufficiently grant awarded. services received, and "eel' property shall not taeeed the fair market independent of those who authorise the ea- tar tr&nasetions during • given period that wise of equipment and property of the same penditure of Federal funds. to product un- will require payment by the recipient curing Sgt sad ton0tilon at M. time Or donation biased opinions. conclusions or judgments. the same or a future period tel Ott s Spore—The value of donated They shall meet the independence criteria f Ouflsys—Outlays or espenditurs repr.- s J lw along the lines of Chapter 3. Part 3 of :.be sent charges made to the project or program spate shah not esreed the fair rental raise V g Dews' Accounting Office publication. They mey be reported on • cash or accrual . • Of comparable apace as established by an Standard%for Audit of Governmental Organ- baits For report prepared on • cash Oasts. independent appraisal of comparable space Muena.Programs.Activities and Functions. outlays are the sum of actual cash disburse- en0 facilities in a rtvalelj•oned building These nominations are intended to steer• meets for direct charges for goods and eery- , to the asme k+ealttll lain the ,Nectivenee of the financial man- Sees the amount of indirect expense charged. • idi loaned oquepnveat-.The- value of sgemen% systems end internal proredures. the value of fn•ttnd contributions applied. loaned equipment shall not exceed Its fair that have been established to meet the terms and the amount of cash advances and pf- rental value • and conditions of the agreements it is hot menu made so subreclpient. For reports pre- 6 The following requirements pertain to intended that each agreement awarded to the pared on an accrual basis. outlays are she _ } the recipient's supporting records for in. recipient be esarntned Oenerally. eaamtna• sum of actual cash dlsbunement Ion 01r n kind eantributIors from Aon•Tederal third stoma should be condurted an an weenie- .charges for good• and services. the amount +• parties. • tbon•wide basis to test the fiscal integrity of of indirect eapense incurred.the value of ih- • flDI$AL 0101110, VOL. 41, NO. 14$--lIDAT. MAT 30, 1117e —3— • • *Saul 2 • klad contributions applied.sod the het de• Status Report (ertgtnal and tae mere than b. Outlay newt ewer request toe tom. crease jot decrease) Is the amounts owed by two copies) so later that SO days after the Gvaernewt or sowstructron reorient (ts• the ree:piest for pods sad other property trod of each speciaed reporting period for titbit 4). received. for services performed by employ quarterly and settleaiaual reports, and 90 (1) Bach Federal sponsoring agency snail es. eestrectore. subrectplents and other days for sanua)sod Ana,reports Tsteaaloas adopt the Outlay/import and 1 equeet for Re. pages and ether &mousse becoming owed, to reporting due dates may be granted upon linburrmsnt for Construction Programs as roam prat-.ems for which no current ears- request of the recipient. the standardised format to be used for re- km or performsnee are required. b Aeport *1 Padesel Cosh Frsassetto se questing seimburwmeat for construction P►ot•srw Income—Program Income a (tsittbit3). programs The Federal spoao : rii:g ettneis chilled to Attachment D of this circulst. It (1) When toads are edvaaeed b sway, however.beet the option of subetitut- may be reported on s cash or accrual bal. recipients through letters of credit Of with tag the Request for Advance or Reimburse- whichever It used for reporting outlays Treasury checks, the Federal spossortsg rent Perm (subparagraph ea) when the ! Vooblrtsted Worse/—Tae uaobligated agencies shall require each recipient to sub- Federsi agencies determine that ft provides biases B the portion of the funds humor snit a Report of Federal Cash Traitaa+:ttons adequate Information to meet their seed/ teed by the Federal sponsoring agency that The Federal sponsoring agency than use this (3) Recipient thou be authorised io sub. has sot been obligated by the recipient and 1s report to mootto?each advanced to recipients mit requests for reimbursement at but determiate by deducting the cumulative sod to obtain dtabursemett tnformattoe for monthly when letters-of-credit are sot tamed obligations Don the cumulative hods au- each agreement from the recipients. Federal sponsoring agencies shall not require thorned. (2) Federal sponsoring agencies may re- more than the original and two copies of the I. VeItgv(dated ebllptloew—For reports quire forecasts of Federal cash requirements Outlay Report had Request for Relasburee- prepared es cash basis.unilquldated obil- to the"Remarks"section of the report. meat tot Construction Programs. tottons torment•thesmount of obligations ($1 Whets practical precticnI and deemed nsosaauy, I When the Fs4eral sponsoring agencies Incurred by the recipient that has not been the Federal sponsorial agencies may require Seed additional Information to tying these • paid For reports prepared on an accrued s• receipts to report In the "Rea:Arta- section forms or more frequent reports.the following peadtture bails. they represent the amount the amount of oath advances is areas of shall be observed: of obligations incurred by the recipient for three days'requirements is the hands of sub- in When additional loformetlon Is seeded which so mitts? has not been recorded. recipients and to provide short w'rsuse as- So comply with legialatice requirements, S Only the following forms will be au- Flanstioaa of action&taken by the too:pieta Federal sponsoring agencies shall Wue to- thoriaea for obtaining financial information to reduce the caress balances. Wantons to require recipients to submit • from rsd►ieats. (4) Recipients shall be required to submit sucb information under the -Remarks"are- • Fties+cr: flatus Aepoef (tstt(bii H. sot moat than the origtaal and two copies of tan of the reports. (I) tech Federal sponsoring agency shall the Report of Federal Cash ?ranaactiess 1M a. When necessary to meet opecide pro- !squire recipients to use the standardised working days following the end of each gram needs Federal sponsoring agencies shall Anaemia! Sistui Report to report the status quarter The Federal sponsoring agencies submit the proposed reporting requirements of funds for all sonconstructtoa projects or may require a monthly report from those to the Ptnatela:Management Branch.Budget programs The Federal sponsoring agencies recipient. recslnng advaneess totaling 41 Review Division. Ottot of Management and May. Soweset. have the option of sot re- million or more per)ear. Budget for approval prior to submission of qutrtng the Plnancial Status Report when (1) Federal sponsorial agencies may wales the reports for cisraoce under the pro- the Request for Advance or Reimbursement the requirement for sub:Mamoa of the deport violent of OM! Circular No A-40. (paragraph dal Or Report of Federal Cult of Federal Cash Tranasctions *ben monthly e. When• Federal sponsoring agency has Transactions (pan-repel 30) Y determined advances to set eseded $10,000 per recipient, determined that a recipient's accounting my.- to provide adequate Information to meet provided that such advsnces are monitored rem don sot meet the Standards for Fs- their seeds. ezeept that • anal lttaactal through other forms contained I4.9tta at- sandal Management contained In Attach- S tatus Report shell be required at the cos- tathment, or U. In the Federal sponsoring mint P or this circular.additional pertinent pletion of the project when the Requst for agency's opinion. the recipient's accounting Information to further monitor grants /tad Advance or Reimbursement form is used only controls are adequate to minimise sacwlve other agreements may be obtained upon for advances Federal advasces. written notice to the recipient until such (Si Tae Federal sponsoring agency shall 4. Lscept as noted below,only the follow- time as the system is brought up to standard. prescribe whether the report shall be On a lag forests will be authorised for the reeipi- 4. Tae Feder/: sponsoring agency. In oh- sash et accrual basis If the Federal sponsor. mats in requesting adasses and rsimbures• tatting information as in paragraphs a. tug agency requires accrual information and masts. and a above.must comply with report dear- the recipient's accounting records are sot • Upset for Adopts@ or aetpwb erswtewt acre requirements of the Omce of Manale- sormally kept ea the accrual basis. the per- (33h00t1 3)• meat and Budget Circular No. A-00, as re- eipleat shall sot be required to convert Its (1) fain Federal sponsoring agency shall baled. accounting system but shall develop such adopt the Request for Advance or Relmburee- S. Federal sponsoring agencies have the accrual Informtttioe through bast estimates intent at••tandardlaed form for all aene0a• option of shading wut any line Item on any Used on as analysis of the daumeatatloa striation programs when letters-of-credit or report that is unnecessary for decisios•mak- so brad redetermined advance methods are not used. in purports. $ Tae Federal sponsoring agency shall Federal sponsoring agencies. however, thee 1. Federal sponsoring &gentler: should at- determine the frequency of the Financial the option of using this form for construe- dept the ideatieg.) information from the re- Status deport for each project or program tion programs to lieu of the Outlay Report cipients is machine usable format Of tom- eenatdering the ate and complexity of the and 11e4urst for Reimbursement for Con- puter printouts in lieu of prescribed formats. particular project or program Iloeever,the struction Programs (subparagraph 4b). A Federal sponsoring agencies may pro- report shall not be required more frequently (Iii Recipients shall be authorised to sub- tide computer outputs to recipients when It than quarterly or less frequently than ea• mit requests for advances and reimburse- will espedite or contribute to the accuracy susily except as provided In subparagraph menu at least monthly when l•tters•of' of reporting. Sail) above A Ana: report shall be required' eredlt are sot used Federal sponsoring S.Federal sponsoring agencies art author- st the completion of the agreement. agencies shall sot requite the submission of (yid to reproduce these forms The forms for (CI Federal sponsoring agencies Shall .• more than the oritinol and two copies of the reproduction purposes can be obtained from q uire ncipleets to submit the Financial Request for Advance or Reimbursement. the OIDu of Management and Budget. • • • • • -q- $101561 •IGIM?I•, VOA. 41. WO. 1d•--111DA1. 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M. eo-ROlti: FEDERAL CASH TRANSACTIONS REPORT 1• Allow .rot `.�.•,wg r,..,.t...t.t.•..t b a.nest �,r Ott iwstr•cti.na at tAe Wk. if report it for sloes Man tow rent w assistants sOreernr it,attach e.i ipleted Staruiard Fora 173—A.) 2. RECIPIENT ORGANIZATION 4. ��• err Mwu, 's. � s Wr r.�1�.r Ow s. *NM • a IL Lew W•da mi. t. to Wow wore.mre Pea M out Same t Give Leta?lumber fa this period • • a P.,..., town ..(tit •1 e. Tyr+c ns.ti.s traraw pp�t s�wast l sloe i.iwiud) •ee'it> fASi.r 10. PERIOD COVERED SY THIS REPORT •R. FEDERAL EMPLOYER MOM (.•.•u.i4,sow) TO (mow&bs ts+") • IDENTIFICATION NO. • a. Cash en hand beginning of reporting period $ 11. Latter of credit althd►esrels 11. STATUS OF t. Treasury thick paym$nb FEDERAL 0. Total receipts (Sum offinto 1 end c) •CASH e. Total cash available (Sum of lines sod J) t. Gross disbursements • (See**Wit g• Federal share of program Income instructions • on Ike MA) h. Net disbursements (Line f sniww kiwi) L • Adjustments of prior psrieds I. Cash on hand end of period • 111. THE AMOUNT SHOWN 11. OTHER INFORMATION ON LINE 11J. ABOVE. REPRESENTS CASH RE• a. interest income = QUIRUING MEENTS FOR THE ENS Der b. Advances to subgrsntees or subcont odes$ $ 10. REMARKS (Attach additional sAsets of'?airt paper.if more apace is required) *1. CERTIFICATION st:MAtMRM OM IMPORT Sugiura.'" I certify to the best of my knowledge and bust that AUTHORIZED this report Is We in all re- Witte and that all disburse. CERTIFYING Ivaco Ds,►hlPitu NAIL AND TITIJL meats have been made her the purpose and conditions OFFICIAL M the grant or agreement (Arse C.d.) (A+rwbr) ttsw+a) TEIXPMONII ' I THIS SPACE FOR AGENCY USE 17J7,1 1 EXMI8IT 2 r.AN *D 7 POY.27 l(.7,7a. +. l.M esPI CIRCULAR NO.A•110 NODAL 110111111, VOL. 41. NO. 144--FRIDAY. JIM 10, 1976 • • NOTICES 2202: . INSTRUCTIONS Please type or print legibly. Items 1, 2, d. 9. 10, 11d. 130. 11h. and 15 are self explanatory, specific Instructions for other Items are as follows: Nos Betty -Seated ham 4 Cuter ornptoyr Identification number assigned by the e'plopes's share of bereflb If treated es a direct cost. N.S. Internal Revenue Service or the FIC[ (institution) brterdeparVmental chivies for supplies and services, beds. end the amount to which the recipient b entitled for . Indirect eoetL 11'Vie rs part ewers more than One grant or Other ' . agreement. have Items 4 and S blank and provide the 111 Inter the Federal share of program b.m'me that wee • Information on Standard Form 272.4. Report Ol Fad- required to be used on the project or program by the Oral Cash Trensactions•Continued;otherwise: terms of the grant or agreement. 4 Enter Federet grent number, agreement number, M 111 Enter the amount of all edjuetments pertaining to prior • ether Identifying numbers If requested by sponsoring periods affecting the ending balance that have me agsnclr, been Included In any lines stove. Identify each grant or agreement for which adjustment was made. and enter III This space reserved for an account number or ether an explanation for each adjustment under"Remade" Identifying number that may be assigned by the et Use plain Meets blooper If additional spec,Is required. lathier& 11) triter the total amount of Federal cash on hard at the 11 triter the latter or credit number that miles to this and of the reporting period.This amount should Include report. If all advances were mete by Treasury check all funds on deposit. 'invest funds, and undepoltad •'enter "NA"for not applicable and leave Items 7 and II funds(line e,less line h,plus M minus line Q. • Wink 12 Enter the estimated number of days until the cash en 7 Inter the voucher number of the last letterof• rsdtt hand,shown on line 11j,Mil be expended.If more than payment voucher (Form 71)5 5401) that wets credited • three days cash .mgiremerts are on hand, provide an to your amount explanation under"Remarks"as to why the dna.4ewn • eras made prernsturely,or other reasons for the excess 118 triter the totat amount of redeem cash on hand at the cash. The requirement for the explanation doss not beginning of the reporting period Including akk of W apply to pr•escheduled or automatic Wanes. Federal funds on deposit. Imprsri hinds, and sonde' posited Treasury checks. 138 triter the amount of Interest earned on advances Of Federal funds but riot remitted to the Federal ageMY. 13b Enter total amount of Federal funds received through If this Includes any amount earned and not remitted to payment vouchers (Form TUS 5401) that weft wed. . •the Federal sponsoring agency for over 60 days.explain Rod to your account during the reporting period. . under "Remitter." Do not report Interest earned mu aevancaa b$*a1 .. llc Inter the total amount of all Federal funds received • during the reporting period through Treasury cheat. 13b Enter amount at adverroe to secondary recipient br• • trhether or not deposited. eluded in Item 11h. lie triter the total Federal rash disbursements, wade• 14 In addition to providing esplsnations as required above, during the reporting period, Including cash received give additions► explanation deemed necessary by the as program income. Disbursements as used hers also aciplent end for Information required by the Federal Include the amount of advances and payments Ines • sponsoring agency In compliance with governing legha• eefunds to subgnantees or contractors, the great lotion. Use plain sheets of paper If additional spate b amount s direct salaries and wages, Including the 'squired. • • • • RAMAN) 'Oriel rn I;1A A-' • • ItottAt IIGISTtt, VOL el. MO. 1411-. eflOAT. JILT IS 1576 • • • FEDERAL CASH TRANSACTIONS REPORT *►r.'•I of ma 111 w"Ht'il•M Oft t1't{ 111. CONTINUATION •�'� t1� 3. *Mu. 8.0• 1445•1•f: misc. quN'J OtGM L• jhi.t w1 of-pfd I. •uri{v tb fq'WOK in wag sire t Osea. LIMLMT TO',RCN TM11 tuna/a ave. i at touter OR•dA WT10A tC�re w taly w teltw a ass CIF'S. ai OOVLALD r Tya RtTORT 1At. w Sr •Oa t At.11■M.• 1 1 A tienf►11611 Iwo yM wet•mil1.r.Maw t •uct rem. 111111,g•••••t wow b M.{wt0111 Ur Mitt, 411,0+1t K ern Hsu a wtfwst • OA.Slant N Moat OIafet I t[C.fatrT£ROYST mosso r1OtIAL {latt Of AR pafti.7RftMtWTs M O�■tt Iwt,rn s aYtlttt .F r{{JI{t rtrT{ •411.■ tyJ wt{ 1w•ttlotis.4 st!►wiry drag- f.•.....wr ► air MMNtirOtttl • { soma,{ .1•.Iti..4 M I act.., •r��Ot filrtrntttt tire' Slowly Agway) It1 111 fe1 111! • • -i L. • • • • • • • • • L TOT4T (SWIM tr.fe►.J r►t4 t.v.ttt I w S? rt w{ 14)1Met'•h...ft!U.sc../r iv t!{...Iw.11 Id)U.ww t//rti 111"4 1111,e111•11%r Pt t 4 evftwhohta da►Y•wtwtlf Mott.w 1611!ftyf•1.Attu'stearahefw.t!sty i/wf■rtt.1 _ .S wt.tu $700410 roam =77♦ (;/•.•••1194{ 04 •11,1 Yrf♦ «w CuCUt.a us.&i s NOtut 81641111. VOL. A1. M6. 148-MOAT. JUST at tpA —9— • REQUEST FOR ADVANCE `"t'" '"°'01°W~ M. .,.. ~ "'O •7'on dr M iu Z Mho•Ywi.f1 OR REIMBURSEMENT .`r.,.. O a....es O fo 00 i+" ....v+ L-r N.corr.1.• If«i.heew•Mil 111 i• O I.... . soma O.rearu t1/+K.4.r.'swim',a aA.Rtp - .. ez•v..• .t/Ms■ •►O tw.iW i er17gr47s1+7117n.7 7 rnicAmiirl.or.afi 1 IEI.�QIp t501•^ZD Tf.II K4JIJ moo dm on,•.ea wwT Iwur. 1 1-must Mr.Am a.ar.r.a/Ponr.r.r Sr ISM . alma e1e.tie •/raa • Par P. teawtanon e► aroann w tiLrauetturn/ae.Lnt� t:4uDTD . . fs! - • h1al/erm 440 &N owes W 001* $ $ , $ UN•f:uealrt•A/ MO,a• •• • tr■r+.I wit. a••Uls r Wan* awt.a • t Ira hem'aM•of 8~0 IP BIOS • q/.TMIAIMMwM• ▪ IA.w'OW:1M I•a.■e+U a•r•••• L Imes'blew an moor awe• sow bee k) I r � 11n Si' or r .rt,q aw Poi••••• srr.r Weans tbt wew._ at.R•an OONNPIaflo. 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AILT at ion • • .1O- 32026 Moms • INSTRUCTIONS • /lease tope to prat*Oft 1161'11.s.S.II.SO.1St;1/a,lime lig.iii.i!WO Il vs 11M41lO•1•IRr motif.i►atsset.aea iI►etIN msse M M 1 NINS: has Soy we■ ww ` • Wave~sr mums•snow/M 111 w! t• a Mal.tlawt*ma as waft/r/aruanan awe saNMMow bat • IS aw 11•01al11 pt/►wont a sNr pa*da/•goer 1•Ikt afw Mot:1a►noose M.sass bra ar.anal waft*,USA f r page's.a. 4. f.R+.rtoa'raft a Ye..a Y ma"manta Mawr<w • • ln/r ea.►Nast tea sos r.w fear tewl1o• ml/mrN/�.. samba navel ow as Tsar&yraaa.s ow* • Oa Noma • 111a4ra.nrr I Or am Or ao sis taw a NB•alas'.Oa arm.rl.w/ow ft M east I far ae•r.ara.Pam w/a.Om.w.M woo•M trt lira over wag Y.wM mss erttmw •0+1N. .aar N mw a mama ao.t all IMO es.++ tau mass mesa Y by tad f wr.am. moat Y N'Mrn wMaae•.a/Q.NNW ohm M 1ralr.oaf O+aaas1.a h a1M1T'3a11• w► Swear roM.aa•Mt 111"IA•INo •tata h 0110.•••s yew*es a awl Ira.aMa w WO • • ens w N '4 le.1ae4ww 14N14•ana_aT Ow.Oa wawa et larre arra=ro pt.tb • Ow V I law*lawns Saw.w 1b Mt pony mar f arm a s s aw•t,rd Oa u.taa 11/4 are waproml q 111?Mewl um* f w/Swan.d MF'+as mom m YAOnm1a• T The use k auras asp r sawn.waft f�r fn.d arvaa4•4 l t'�ns.oaM p a ea M ea e.cnref a.w..arw 1.Ya.UP5I.w pa era•0a 'hashes. wooer, Pal Ogg r wag's! 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VOL. 41. 1110. $4Nl10AT,iv)T 00. tp0 • • • • • -11- • • • • OUTLAY RIPON") AND NIputt, FOD RUIIDURSt• ��N V W� ~ w MINT FOR CONSTRUCTION PROGRAMS R�taIK~ iwer ~•° a fu s••ratan a era"•1•043.1 (5.wat..aw w ewe) O.�,► 0.�.�+.. 0 s.•. 0•a•.w •w irais qu:+iiw:n wrw.w.s srlrwt w• �i�in:e:••'tu'"_ •r..+w w.ron•saw•• •=gas IYRnnirew i.•te•iir zzass rows s _I f�alt �w /s'or*a s>•1 I Is tK•s tart •t6.wNn•.•.wall a. •fefE t•f..au ars sr,sYA as am of eta tam • Dwell • pgrbs OUT g. Is. El OW a r MOM RSAIOWICaRON Is) (f) 10) 10Ta1 • • • w•..r•nwa..Mw• $ $ $ $ • s Last.'matt wt.Ortoitwr • t Poises Mssessa/a# • , A • • l Lard MrM•/mA S. Roasts.sagaret. A L bucHr•Mr^/.tt fa 1• .t•W•.a . l Or..tti..•.a na'a•a l • CIPVIVI4. •M pawn r.•wass as • • site • a Ia.taMt • tlt asuer Mtit ties • Tau'sley.mtms r IMO(wat W•••• •"WV IN) • • OAriT..a 10,prows Lars. • . t or swoosh.* asta two•maw ass a • foss'te.wrsee • •. &.Ms' fteso rims DIOS sow •rwn...q • Tait room! shot Isis••as •ns f1 • _•werM • aware morals(as w.tww.rst $ $ rS $ • Pion St Car MCAT ism ►t. w sir masts sa•tM.ra =at•t/Mf f WS,utst r as WO•I w7•terms• •rs Wit�ifY a•s ••y'ow ww wets s•tsars,. • RtCM1tNT not•M MOR•ya•t M•11111 •B 4~11 Ulm efta fse•S 1,4 esewesmo WI*111.001111 .• M Ps snort•M hi.t tM sosIs w.sta pr.M.q tee hem'Nuw ass oars •.a•.�as�•sese ita•a•IT/►as last WOW an tat W r.»rie wsr.saa Raa ••/ . OW M Mas.e++'' tun Ote 111.10~1 • •.•wt.wt.tw• sit• Of•o• • i. •tc•'hw>•wu M 111 S•~ ...aa•.warm sari•tt•MIA r...vsat�t sass belft et WO s••lt • • n•.e.r tie•st o.••: /ft•iN anti/7 •, . , aria.'.e.w•'•�wM and VICw r so.MI, RDISAL RIGISTta. VOL. 41. N0. I4$..AIDAT. SKY fD. SWA • • . -12- —ET— • • 'L$i 'et lint 'LY I t—tot •ON •tt lO* 'uu1 is m30I! • w v sat a.wna • • • • • • lasaral• Will sus a*eras 1011111114 P a.•a• •••••lwsa siestas as'tams $ wylAu•softie A wawa•W•Arcola•Ma 41111 11111140/1 1111641 'ad •soli. • MaarwsAY MPM all Al/•Warms •7 ly it M K•lass MIMI*j•rwaA M MN* I1*. 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'Was MO vaasUMW al WO 1.04 sr%WW1'aM 16110••JVII■••/mewl .+1'•v va* •V oar Ha t■u lyrwal'r w at OYara'a Kt •iris�"v0wa os s aawaw K mass a~gm arias wpaille mei it Ma^v Palms Ikas w•• "aw Pause s are papa s.4t 'a • — K aft as aura w rayt Wad al wow.y'tape+y•saes.'••b - ass•mass swat ss+q ppriup a eras 1.4 t Pala••pal rasa ••warm•era vaCSlw tta•r laal•f.e•/t•rwur a•.. era urn l•lsvaar wars my male utt (•••Ir4=A al •••s a'wyl dw.w•lrl t'Il wa •air wont as•/arlst a Was, M M•AI••+•u�wpt.•ISay,1a•A aqua at an f M• t—sa M+■1 yes era 4 ■a■•a Al••••••• •van•r,••■••• al Wows•gma•perm Mil a Maw•pa r=a•Maas w waaaat was oafs i Ml pap•••••1► pa fasrw.r++w Poway a Away a aispr a lbausw•+•t•p1•taa"sue Vela. A wlaanra era ry•lima./art arprr ••s•—h y tsar OMNI NIA ww+w.a as ail miatsa•am art Pima era ape III as'a•maw ail•v•UJ' - 's1'a t • w ppp: Saw main /r«tMatel 8wt ala M.+1 jatlug 1Is1 Kt We It'In'$ttt'[*w•t$ MA a � . • sw011.21Iussi • • SCUM fang • • NOTICES 32029 Arr.onnstll—coma llo.A-2t0 anticipated ee more work belts to be pea $071.when the»etpleet sheets MI of the w- stoerttseree firs steeetiere rso•a►w duce than originally projected. qulrsmenU specified >n parfgrapb S. above. P111001111108111 S once s S. If any performance review eesducted omelet thole u subparagraph fs. • by the»etptent Machine the sold for change 0. The relabureemeet by Treasury theca S.This attachment sets forth the prose• In the budget estimates to accordion with seethed shall be the preferred anise*>?the • duns for moettertng and reporting program the criteria established to Attachment I fo recipient dots sot meet the t.qulrtmeats performance of recipients. this Greatly the recipient&ba11 submit•re• spanned In subp►rag+spbe $b ails ac.above. g aecipients shall monitor the performance quest for budget revision. At the option of the federal spew/snag header grants and ether agreements and. 7.The Federal sponsoring &genet MIMI Metier this method any atao be wed ea any where appropriate. ensure that tine ached• oaks alts nests M frequently fir practicable soastruchon agreement.w U the major per. tales are being met.projected work wilts by Me: ties of the prove n%b anoreplished tarots, time periods are thing aceompttshed. and • •eeiew program eecemplbhmeats tad private tastier /meting or federal !ones. Other performance goals are beteg achieved. mMageineat control systems.and and the federal •attstann senstltutee • This review than be made for each program b invite such Swamieal ssutaase as minor pantos of the program when the ee. function.a activity of seeb agreement u at any be required. tsnburwmset method Y wed. the Federal gerth la the approved appllct on er award S. federal epenseriag agencies shall submit oponsortog agency &ball ,fete payaset detuaeat. proposed technical and performance reports within thirty dews after ramipt of the'tibial. S. lfeetpltats shall submit • performance to the OQtee of Management ass budget for ta)ese the billing Is tapreper. tlepttrt (technical report) for each agreement septeval 10 aceordaaee with the report pear. S. whoa the letter-of•erodit preeedurs 1s that ►tinily presents the fonowieg worm. awe»club meats of Old Circular No.A.40 toed. the recipient shall be Wised one an' ties for oath program.function. se activity aalerbed• utilised letter•ef•ervdtt wbeseve► pun,* {nested as prescribed by the federal Spin. Arnacxwon I.-enevtaa No.£450 to cover anticipated cub seeds for all greets aorta/apace: and other agreements *warded by the spec. S.A sempartaoa of actual accempltehaestl teatsaarr wvatttsme a jai s' agency unarm win.to enact pant Alta the goal ottabllsAtO for the period.the 1.This attaeha+sOt srtshttshs she w• method b used, advisees should be am- findings of the tnvestigator• or both.u the pinned methods of making payments to meip• solid tad (pooled) for all grants and other Output of programs or proattve ta the�110 cats Thee.methods will minimise the time agreements trade by the sponsorial Wen q *lapsing between the disbursement by these to that reelptest. be related Y sat data cot eosputauos et recipients and the transfer of funds from the T. /hoses otherwise required by law. pod. MIS Meta Vatted Staub Treasury to thaw recipients aro 'poneremg agencies &hall sot 'nabob b.amen"why Mtsbiiabed peals were bet whether such disbursement occurs price to payments far proper charges made by web!. Meet: a subsequent to the transfer of fweds. onto at any time during the project se pre- a. Other pertinent $nformiUes leeluding. g. payments sae be mast so meipies'e gram perfad unity (s) •recipient ha failed When appropriate. analysts and explanation through $ Utter-of•eredlt. as bdeaace by So comply with the pa) • r objent jetties'.award Of Dort overruns et high watt nests. Treasury cheek.or a reimbursement by Treat• conditions. a federal reporting requtro- 4. incept a provided In • and b below, swy check. The following definitions apply meets. a (hi the recipient is indebted is and m subparagraph la If). Attachment O. Set the purpse Of this attachment: the Vatted Mates.fins coltKtlea of the !t• recipients than submit the performable a a. Lettee-.f-ereett—A fetter-of•a+dit !s debtednese win not impair aecompliabrat technical reports to Federal sponsoring&gee• an Instrument serttfied by In suthorWd eN- of the objeettves of • project a program Mm and the pibancial Status tteports see- emai of s federal sponsoring agency that au- sponsored by the gaited •tats. sing the same period in the frequency estab- Shorties • recipient to draw funds when Vader such conditions, the epeaeorll►g hailed by Attachment 0 of this Circular and. seeded from the Treasury. through a Fed• agency may. upon reasonable settle. Infers where •pp►eptba• • final 'ethnical a Fe" oral haulm bank and the recipient's own- the recipient that payments will not be mute formica report afar ternpltUea of the Mretal bane. in accordance with the prowl• for obligations incurred after a specified data project net a date speeded by the federal sloes at ?rawer/ Circular Ito 1075. al a- dnttl the conditions Ire sorrected or the la- sponsoring agency The federal sponsoring mood debtednees to the Federal Oover&meat Ice agency shall prescribe the frequency with b. Adrsete by Prwvey •Ask..-Ail ad- Itquilated. which the performane reports will be sub* vain by Treasury check Is• payment made amid with the request for advice*or PM' by s Treasury cheek to a recipient upon Its kreaeatatatrr 1.-Caevus No.A-ZI0 burement when that form Is used to lieu request berme outlays are made by the among or rpr•e+etat. wens of the Financial Status Report Lacept Y pre- recipient. or through the use of pxedeter• sided for in paragraph $ below.performance mined payment schedules. 1.This attachment sets forth criteria mg reports shall not be required more t»quenttt e. Ac,nibsrsement by Treasury cheek—A procedures to be followed by Federal upon- than quarterly or leas frequently Use an- reimburse meat by Treasury theck Is s Tram. wins agencies In requiring rectpiests Is es. *wally Federal sponsoring ageaeks asy or, check paid to a recipient upon request Port deviations from Stain's., Plans and to • waive the requirement for recipients to sub• for reimbursement from the neipiens. request approvals ter Seasonal pith w• sett performance reports with the laaneiti $ gaeept for construction grants and visions. reports under the following circumstances: ether construction agreements for which op. l The Anomelal plan Is the mistral sa- e When the recipient i required to sub• bona) payment methods an authorized. as preselect of the project or program as cep• sit a performzece report with • continua- described!n paragraph 1.the letter•ef-credit proved during the spplleation sod lor sward Mon or renewal applleatlos. method shill be weed by Federal sponsoring proem It may include either the Seders:and b. When the federal sponsoring apiary M• &gentles U all of the following conditions non-Federal share,or only the federal sham. termines that on-site technical Inspections mu: depending upon sponsoring agency require- and certified sampletlon data will be tuf•• a it there is or vOl he a continuing eels. menu It should be related to performable Meat to evaluate construction projects. UonsAip between a recipient and a Federal for ftegram evaluation purposes whitener S. When the federal sponsoring agency a• spinning agency for at least • 33-month appropriate ►el required by the Federal quests annual lnacelal reports so • fecal period sad the total amount of advance pay• sponaering agency. year bests but It Is necessary to get annual stunts espeetes to be received within that pea l Meer aoneenstruettoe swarm. raelplests prtgress reports on • calendar year baai. tied from the Federal sponsoring agency is shall lsnmtenetely request sppreeala /ma- ll. Nemeth the required performan e re- 5250.000 or mere. as prescribed by Treasury federal Sponsoring agencies when then it porting dates. scents may occur that have Circular No 3071 For Joint funded projects reason le believe that within the sect 5rna significant impact upon the project or pro- the Treasury has authorised •dollar tritons days a revision will be senaaar7 few the gram In such Instances.the recipient shall of 5130.000. • folfewtag rea5w: Sr a. Changes in the scope a the"Pc"se Salons the Federal sponsoring agency&n 5000 b.if the reetpleat has established or lea- the project a program. MI the following types at sonditions become onatrated eo the Felerat sponsoring agency b. The seed for sdditiossl Federal find. lama: • the willingness and ability to maintain pro. a Problems.delays. or adverse coalitions ensures that will minimise the time slaps. -1. The transfer of amounts budget Set UM will materially affect the ability to at• tug bet.eee the transfer of funds and their Indirect seats so absorb tneteases t greet fain program objectives. prevent the meet- disbursement by the recipient. eons or vice versa. C approval Is ulna trig of fl ne schedules and goals.or preclude e. If the recipient's Sumba) management by the Federal sponsoring agency. the attainment of project earl units by as" system insets the standards for fund control 1. The expenditures as require approval 1e tabliahed time periods.Tbb dtseleeure shall and accountability prescribed in Attachment accordanee with ram 73-i. 'Cost prtnci01es be aecompanid by a statement of the action f to this Circular. 'Standards for financial for Sduesstional Institutions' For ell other taken,a contemplated.and any federal Y. Management Systems` awards. approval requirements for other N stanee needed Io resolve the t'tu•tion. 4.The method of advancing funds by Items of espendttures may be tenoned If they b lseoreble developments or events that Treasury ehe:a shall be used. in accordance are consistent with those in ?WC 714. No enable time schedules to be&net e00aer than with the provisions of Treasury Circular No. *thee requirements for specie Items any be ROltel ltetlttt. VOL i1. NO. 111—AmAY, NW U. 1010 • 32030 NOflCU aboard sans • deviation tae Wm sp. S. tamosirt.Tbs Vicammt of • peat stf the coot•other Mpmeseeat sat mom. proved b the Foos of fAaagamast sail sp•s teat b the pesos by Mich a Federal Behr or "tendor4e. When teat rerun: the Wget spmaarii,array tet•rmtam than ail ep- P .rsl apiesnrisg ageaey many. ss r OS. Ae monk .plea to mowst:mode&lotsM pltiabie restive whim Sid ail re- asks feeler is the wdpteat, oinpegt the gm %sates snowmen (Meet papas* to gtMed Work of the sour sent Moe Mss peat s ether egresm.et,sad withhold fur. lerat•se) M*hen categories at*male. eemplstad b the rrdptot sad the Federal Saar patmtat*, prohibit the reatpitet trees 4. Peso at the sutstaatles pregrammabe apaeortagageasy gasurrtas additional obllptbae at !.tots. wra sleets past to ether weeniest asp b. Oaf' of svmpitttea:Tbe date e[oat- Fradiap osmcti•e ec on by tae,sdplest,w be aubeeatraerd or trasahtred without prior plebes b the data sn Mich ail Wert seder a teeWoa Y smosityftie eamrdaass lath approval at the Federal apoaeoriai Wog. poets oat etbe agrasaesab b esmplut d Gtr paragraph q.Its Federal apeaeering*gamy This provt*>ss dare'sot apply to the purchase the date as W sward Betts"sat at say shall silos a31 simmer, eel proper eta of aypUes.material.oTt+ipmeat.err smarm! 'evpplearat s amradmee$thereto.tm MOM toot the moped seine set reasoaabty eve. import air+ltrea Patera epoaectebip Gads. ernes the period of marinates provided that Tae Faderst apwa.riag spsaef may a. Dtaattawed torte.-.Dwallowed este an they awes lie ...wow of the yew ee, *tee.U no optics&nark'Masten at tuaas IS chaps is a peat s etas: woman pod"earl petaapts. s'beas three% eat tawgt.rtm for sward" la that the Federal t>pcaearisg sewer • Su i FedsrsJ epoaserisg evade. shall pre- mono the Federal share monde $10o.000 wprerateue det*rmtas to be t aallew- Vide fat tM yatetis6115 wnkaesat sd te• Wbts the emulative Sarum of Nab linos- sail.is saersdaas with the app? .bk Pad. sheeted paste or other mists lash re fart mead' or is impacted Is mood Sys stet wart prtmCpl. • ether sooaitbas Gw- gig the fetlewfsj: �s byat'of the total budget as last approved taxed In ads sewnoes*. t) a toLIaattee user.Tfe pedsral tbe sponeoring saucy.TM sass onwrta S.Ail Paderal apeaaartag wails rmetl ae- for • shall apply to the eamulast'e amount at leb11ah ela.ovt procedure'that fwwe the y°asertag .gserf say warms the ngbt to • Ininaeii rioter prolrame. /machos'. sad tetlOO1r�requoms*5: le say peat w ether agrsemeat is aruettts steno b edjsted wpantsvy !s as S. ppoa nqutst. the Federal epossona when s to part at say time before the date •wart, t*wpl thmt i5* 7ederia epoworla4 mewl amyl muse prompt psymsnts is a nt ooarpleuoa,whew's:it Is dour:minaa that agesey shall permit so transfer that would 'alplsat Is allows►M n)sbursahle Gans the ttcfpielt bee tailed le •empty with the Woe say Psdera approprisUoa. or pan wader the coat at other agr.rasst belttg soadWow at the igteemeat. Tie Federal thereof.to M used for purpoes orbs teas timed wL opsicortag eye art shall promptly amity the Sow Intended. b.The nelptem abut se meft*tely',rood acipi•Dt te writsaj of the determlaattoa sad S Ali tithe? eSiego Is swacoatruetIos say balance of tisebugetad (teaesc embsted) the reason tat the tarmtaattoe. s.geths budget.. Wept Ice tan caasee deatstbed eats that the Federal iipomor1ag ageDey has With the elective date Payment* made Is ID paragraph O. below. de sot require y• atvaaced Gr paid and that is set authoelaed raetpiesta m neonrim by the Federal opus. �prrees.d. Tam includes the me of recipient Is le setasaed by the nolpient tar um Is sariag egtacie wader pants a ether agree. lease Is tvtheraae of program selective* other groat*se It asr.'tseats. ms au terminated fee teas shall be is se. emir and bbo•t the rnlpleet setaimwm ab are a.The Federal sposesels,assay'MB ate "ordasw with UN legal fights and UabUit*M ladled is the monad budget. Iota from the eacipkat wttbie S0 Ganda at the portal. 1.Per esnatnacuce swards. Palpitate days aft" the date at sonipletima et the b. Termtnstior►ja eoasenleeee.—Tfe pod. eau requet prior app+e•els promptly from sgrsemeat nd Seasclal. parform.&aoe. sad teat spensvlag spay tr ptioles%say tv- Federal opeaaortag igeaels► tar budget II- wtber Morse requtred of the soaditbs at the cleats greats and ether agreement*th Mole oslaa wherever: aprmeat.The agency msy Trost estesatood ar Is part warn both peruse arrow that the s. The revlafoe mate hos shears is ebse raqusrts415 the rualfdleas. soatawUoa of the project would sot pro- tht mops or the Mischa Of the project ar I. Rasa autborts.d by the past er ethQ due Matldai results somaeasvrsts with Forum.sat agreement. the Federal epomaonag wen the further sepeadltue of tuade. The two b.The tables Iacreaas the budget WWI mate a stlfemeat is any upward de partite&hail se..upon the ttrmisauoa oia- steevsts of Federal tuba seated to aim. dowove d adjustseat* M the Feder") *Dan ditba. Melodies the eleettve gate mat. is piw yet 'Inject, ar east* after these neon an moiled. the raft at partial termisetions.the patio" •. brava • Federal spoeuorlreg Wan a.The nctpteat ahau emovat for ray pray- to le termtaataa. The rectpitat *ball test make sa award that preside support•tilt arty required wits Federal tusds. .r ear• faefa tea.obiipstba for the terminated par. bash censtruetlon and soecoestrucuon work. steed tram the Ocee e.e*D% Is s credasee &tea efte tee elective tete.Led abate see. the Patera apOnaoriag agency any n m qutre with the pro►bioaa of Attasbest P to this et tsaay eut*t*ndlag obligetba as gam• the nclpient to request prior approval from Circular. Property ftaaas.meat Standards. aibk. Tbs Psdenl Gpoteaertag alesey abate the Federal sponsoring agency before mating S.Is the mat• anal audit has sot Men •ilew frill await Io Ss peetpleat tw the My tad or budget Masten Stone the Performed Prior to the eimeout of the past Federal more at the soaeaeel)abli wigs. two types of work supported. at other agreement. the Peden/ sponaorlal Woos.properly incurred by the recipient prior II. For both construction and smarenstrve- 551Dt7 aaa11 petals tae right le mom? ate so tsr ropeles. Vas awards. Federal sporaorlbg specis appropriate amount after fully eeaaldsrtag Shall require recipients to Daily the Pad• the r•ooemesd.Ueoa sa!tailored mei fe• Amex wan M.—Ceram llo.A-110 etal apaneorti g way promptly Meatier 'ultras from the anal malt the easel at PedeN sutborimd fasts P 4.SuiPeoaO$ sad termlasUos ppomedtm m orWain roue foe amain rw matted to emceed the seeds of the stripiest set martial ` Attaehsest L M this CV. retreat esetrima • by more that 11.000 or 1st permit at the ontsf. 1. This sttaehmsat promulgatsa • •turd. Feltra) award. whichever to greater This ArrecmrmeyL i+a Po./1-110 � form (p'a1) Is be used by public sad astScsUoa •111 sot M required V yplite• private $stitutlore K higher education. steno for additional fuming are submitted a *ea Gen meuemereorr wscaa'ass public and privet*hospitals sad other gusse- ts seatinutng pants public and private eseprolt organisation'es SO wbea rsqueettng epproval to MAPS 1.This stlacbmest preterits wsiform a fare sheet for app:lcations Mee applying fevialoa. nctpten4 shell we the budget swamies and termtastlo$ prccedurs for tat Pedere peels wider program:sovtree fer'ms S►% wen was to the spplIesues Fedsrsi past sad .Sher apeemeate with by Part 2.Attachment A.Oaf) Circular no. Salew • ktt/t request wiI sable terblests. A•n 1• •alpha. agencies are particularly • 11. *W1%$0 calendar days from the date S.TM taper ag deSaltieae oboe app? eameuraged to attend the use aff IF 424 to at resipt of the request for budget pees- lea w peryca et this attachment: sotamoa program"with Site and kcal rev. *tans. Federal sponsoring agencies shall Ito. a. Terehasftee:The temta*UO$ of • arasesnu wham thy tam aim Muted by ewe the request and seta, the recipient past or other •grmemta1 memos the sea- TMC$4.9. dih•the►yu budget revtaleaa ball beta y alistbs of Federal sponsorship.ea wbel*of S. The tgF 1Tf teal also be used.on as OP" pissed It the athletes Y stilt wider see. go part. meet as agreement at any Wmm $boat basm so 'maw the requirements of Sideraten at the end of 30 calendar dale. prior to the date of mmptctan. 014) Circular A-St for•sotSestlen d m- St Pederet spontorlag agency shall Wermt b. taepe+u his:TSt ouapestbs d a rant lent.how applkaat to eleulnghouaa.that Use recipient is errtueg of the date when the EN Other apvemsst is as echos by•Federal Federal assistants will be applied for goal sotapteat may aspect He declaims. sponsoring *wary that tsmporeriiy sue• air State elearlegheuse preceduts 1101 govern Aftatatetar, t .-.Ca vi.a No. 41-4$ penal Federal apoas:rsbip wader the peat Ilse taw of the tars far this purpose. mamma wocsesae or other severest. pesdiog mnecttve se- S.Ti. eta dart form will also be rated h Ma by the nerviest et pe•alag • daisies pedsrof orate, to report to the vivaria- 1 This ettaehmeat prescribe aortae' Io te►ritnate %bs past to ether agrvemeat Mum on Wet action' tales on appltas- closrevt procedure for Federal pasts set by the Federal aposaeriag igeag• tea neleeed by clearinghouses M ward- other egrementa with nclp snta. P All Pule) aponaerlDg wain that one with 0141 Circular 1145.and to sally $ The tolleatng Manilla*Shall apply tar provide procedure' Is be followed *bee • State of grants-In-aid awarded fa .cord' She putpae of this attarbeest: f.elpkat ryas failed to maply with the Leas Moe with?moray totals:IOU • Ftatsal MCrUU. VOL 41, MO. 1f1-f1110AT. aai as. sole • —15— • • • —9T— 4 • • • • 941 It LW 'LIOII*"Ittt ON 'U1 10* 'II111ttt 1v1141t • . Na.q•.4a t•r••ew•N•+?r!'Vf9 14 Jirt ttt-Qtr 1 70.4 UP wa41 OI.Car.a •OIL3v it■1r t••'•'M'w r••■• q••�•M••.w 1.t I 13N1ty 1vI1a31 Nl. 'tog+4+19 8I�O'1 W 0••••r1/girl N•w.••1 4 mt.A 1'•1.•• IIgIHS lee x31111 171411 I •rl w w•+.qw.p '•w f'eft••••• 1••'wows..•I. IV.'H If I Itt ..."'. ...W:r .4 • 0T 4 1t1Y 1 maims* •Cr 0 1 •a1Nt1 " ( b3S'1 O • CI0O4 SIIIVrfiN'tt or MQt I wp0Afl1 U sela 0 OF WU" NM Matta•O I m• t+tr'• '•'A'4 r• '..'Nl mom LIV31Y11 1 f11IY1I'•O •i 1P'• I ••••001 11N011Laav IOa a3s1M03 1t ItiM4�goo 4$ •3j NOILaV •ti 4tr • 1113414 a QMw •O•� •q !1"• +s 1t /q 1e•+• AIM ONIamits 'tt 11M& w01i7v'tt WI/VOW tale :Ana 1vI3C14 U • I1II0QI•t,I NOILI�1/ass ty IOU R =WO 7AILVyLZIMIwar'ti WMt 1.041: 11siv000 It U O1A'Ia1I "O` II • from an v313,40 Si 11IVe1 13IMri 7t t ',moo=s •IO•itt 1 •+ 11•'• ••s 54L14111113' MIN WO • • 11/1411110111 4t Oft IMr1 SUM • t 1 Q Q t - . 1.1• •••• • •1y w a •1..,g1. pvlw• ws I• •LvIL 1M••0•l••..• 14 as 4,...a: •N uU11I» t0 A MI lemma as 11 wave: 4M LMVvI PddV ••I to 11••'•/ w1 '1•r•I .•1 .1V.I IML• r_ww.• •••b .•1••WI •Aida, IA •.I wrl1A1,n1• ww.4•nw • '•w •w■••• w •rIwIM.J IwA1•• 'II • •.• "•g•"tt ••.•N ••r.'•�•• AOof4•1••*1wM•w•Sr,.wo1.0 Ia0 is 11.•11/M 5 •/•AI 1.4.I .4 V A 09 ti it I It IN 0 ems 0 ISOCI 1110P1111•ti.! In"Irl''••t...,•"1•,0 L$1fl 3V 5Ar12I11 OL £N3'ri 15I1a'ta It St •a3M10v •wUa1/ i e' t ails '1 0 01LL'SIA1 31 ttltw1lw NOt&YIIJlWJflat 1'M014 twain •t$ 1'p w.9•• 01•4 OL 7L.a O3I.w1111 tt N' I� ' (�,Maw:•r•s aril/ St 1 ar' 1r141 1 tt 11 �' 11 •••■••!j 1101/•1041 17 11'+1'•• ,t 11.0 L.17rOa1 'tt Lav S L11r0I4 1t:tr• WU ' asses 1•.o- a0 u tl1'IN i MOWS wa1.1 . I(M•+tr soft WI'1 5•••g•I 1 MOW'St_ NNltV11 'r01' t 117141/ tat a we n/! IsaNVMS 10 Itll It 'b I.L IIL111a 1vN011T110M0l '•t Wales 4331O•CId 11 Enawn••••••••••sy .ILa/r 0 Is-ui-t • r ♦I I,� �I 011111.11W3 It MOILIOr1MV b I/1LL 111 mom trIitw 32 •tty ••wr''•'MI4 ?:avast =trait. JO lin it onrin•q#1.0.41 ••T,' •Y•M'0 Neel 11.10 14.•.1.1'P 0 Iyp1 •1 R 5 I31etLIIt111V 40 1.114 I 0 anon•mi.••ee nit • ' 1 �r�=tJ 'w ww•' -0 •• �w1/•1. q ow 1 •#1•.1- ••••604,111-11 11010■ L,OHvIu'uOlet•N 10 WM I Lwow I1M/if'idV 10 w0tLII011a OVI rUl't I , t••N~wry P tom* '•iNP waft SPIIIII.1 • t••1'1 ;MM III It e M 1 ••1/I 11th I moll moll s M,• s • ISO V 11 1 T•l 1 I IMMO • ION _ at rem* : re••.••+1I I . t •A.a/4'• ON teOILVIW itlet YI►O'4w1 mina 1 LNItd177I/L+lR/fv 1r0I1 1 I•'tt 11OtL71 1mQL p WWI O moult.'_ '••q (1r0)was w IOUVV11*0 4'ra••nr W IIIMteN Itly GI ' NOIL» 1101.1111 1441 O sous "0 WAD w•t $10 I i �~ -I1111t1'14 I1M11 1btoirm ltr 0 /OO i1aL't Lune E.. now... Iola M,MI„1e • ,r14101 1 33NY1SISSY 11i/113031 •tsar• a-,,,,.....v IJ•s • 1riVit sateen" • • 310.3 Pianos fii ION 116-1 MARKi (Please Werewolf the proper& a sewier/rya SaRawr t.n w At. • • $TAMDAR0 FORM 424 ►AGE 2 (10-75) MOIRAI uGtfTU . VOL 41. •10. 14$- iSIOAY. DIRT „. 1• 41) _1�_ NOTiCES 32033 • • GENERAL WSTRUC'TONS • This is•mufti-purpose standard form. First, it will be vied by applicants as a required bcesheet for pre- applications and applications submitted in accordance with Federal Management Circular 74-7.Second,It will be used by Federal agencies to report to Clearinghouses on major actions taken on applications reviewed by clearinghouses In accordance with OMB Circular A-95. Third, It will be used by Federal agencies to notify States of grants•in•aid awarded in accordance with Treasury Circular 1082. Fourth, It may be used, on an optional basis,as a notification of intent from applicants to clearinghouses,as an early initial notice that Federal assistance is to be applied for (clearinghouse procedures will govern). APPUCJIKT PROCEDURES FOR SECTION I Applicant will amp ate ad Items In Section I. If an Rain Y not applicable,writs'VIA".If additional sows le ruled,rsase an asterisk"•".and use Vie remarks section on Vie bads of Ve form.An explanation Woes for ea ft Yore: Arai . . 1. Mark appropriate box. Pni.appilcation and Spoke- D. rnwrens.Self ocieneto7• Ion guidance b N rwc 74-7 and faders!agency C Other.t'apiain on remarks pegs Peat rsm instrudlors. Notification of Ward amid• ance is N Circular A-95 procedures from deer. 10. 0o a novice? unit when significant and weenier . fngnovse.Appticant will not use"Airport of fedond tut impact could be otservwd. lie ony Ism s* uni Action"bow r units affected. such as Stets, county.or aia. N =s. Appncent's yarn control number, V dedrat entire unit affected.Yet It rather Van subunits. 3b. Oata Section I Y prepared. 11. [demoted number of t sore dlrsel�r benefltirlg Own Meld. !a. Number asstgred by State dearingheuaa,or P lake 1x um approprtats ends letter.paM►Rierr cwt gated by Rats. by arsawlde clearing++ovsa.Aa A oasts to fedora?agencies must oor+tain ills i .& A. Neer. A sub heal for the tuft time for a new aM If the program is covered by Circular A-dS and prclseL required by applicable !fate/srsawlde Warkrtt IL Renewal An extension for an addttimei funding/ house procadurea. II N doubt, oonault your tsar- budget period for s project haring co projected Mahatma. cornptrbon deb, but for which feelers!support ▪ Data epplkant notified of daatnghouaa Identifier. must be renewed each posy. 44• 4h. Lager Hems of applicant/recipient,name of primary C. Revision. A modMlcetion to prole.a nature or • organizations, wilt which will undertake the caste• mope aiud+ tns7 mull In funding change (Ire • once activity, compiles address of applicant anal crease or dectisas). name and telephone number of pew afro can p► D. Continuation. An oRenslon fw an additional We further Information about this repuast funding/budget period bra project the agency S. Employer identification number of appileant ea es r►1batty agreed to fund for a definite number l f signed by Internal Revenue ierbes. yam • ice. Use Catalog of Wend Domestic Asalstanwa mow C Augmertstl t. A requirement tor additional bey assigned to program under 1000 assistance le funds for a project previously per awarded funds In requested. If more than one program (e.g;, IsInt- see same ti�ingfbvQg/t period.Project nature funding) write "multiple" and explain in romans. and scope unchanged. If unknown.cite Public Law or N.S.Cede. 13. Amount requested or to be corftributed during the ISO. Program SW from federal Catalog Abbrouloto r first funding/budget period by each contributor. Value of N•kind contributions will be Included. N wry• the action Y a change In dotter amount of an edit- !. Brief titte and appropriate description of projoe . Mg grant (a revision or augmentation). Indieste for notification of intent, continue In re Ma ann. Only the amount of the champ. for decreases ow Von N necessary to convey proper description. lose the amount In parentheses. If both basic and supptsmental amounts are Included. breakout In S. • Mostly setf•eaptenstory."Clpr Includes town,toewt. rerrartts. for multiple program funding, use totes ship or other municipality. and show program breakouts In remarks. Item deli. S. Check the pe(t) of eaatstsnca ueeAd The anions: t3a. amount requested from federal Gov b rp ernment 330, amount applicant will oonttibuta: definitions of set tenna arat 33t,amount from Seats,If applicant is not a State. A Basic Aran. An eriginai rouse for Federal 33d.amount from kcal govemrnent If applicant to funds.This would not Include any contilbAlcon not a local government:13e,amount'torn any other provided under a supplemental graft sources,eochlain In remarks. !. Supplemental Grant. A request to Increase • $4a. thg apteemery. basic'grant In certain cases where the efigIOM 140. T*e d'rstriet(t) where most of actual work wit! be share of cannot s fader the required t ,grange re ocaomptished. If citywide or Statewide, covering Mare of the basic paach program at C n a., several districts, writs"elly•wide"or"Statewide." • awarded by the Appalachian Regional ComrrsY• Sion to provide the applicant a matching share). lt. Complete any for elisions(11am 12c).of augmr. C. toes.Self esplenet ey lotions (Kam Us). STANDARD FORM 424 PAGE 1 (10-71) • RotaAt viclftia, VOL 41. NO. eta—lalDAT. MAT Sir. NM • • • • SMOG • "Ulna,) . • Nom i✓t/ 26. Approximate date prof ,expected to begin(=aft It tsit►ng f.derst IdrRtfkstion number 11 this ti sot ssaoclsted with estimated date of avatt•W1ty of • Mw moue= and directly Islets* b • pw•v41e funding). Federal action.Otherstee writs"NA 27. Gtimated number of months to cenobite poled SD. i dictate faders, agency b which this nq;wt is after f.dersl funds ors=Oars. addressed.Street address sot nquered.but de wee 211. Cetimstsd tat• preappticatbniapptkation stls M ?!►. •vbmnted to federal agency If this rabid requires Ill. Cheek appropriate log as te whether Section N of clearinghouse melee. If review not required, this saris eoritalna remands and/et addition•, Arians date would=many be earns as date M Item 21s. an Soothed. • APPLICANT PROCEDURES FOR SECTION N ,Appncanb left shyers complete Erne 23a. 23b, and Dc. N cleartnC+ouse wirer is required.Neon tr►rust be fully•ern. -*tied.An explanation folio=for each gene Nom One 22k. List clearinghouses to which submht•d and lbw alb. Sari misrt•t•iy. M appropriate blocks the status of their respona*•. For non than biros cl.artnghouses, continue is SiM l�afl/�y. remarks section. Aft written comments submitted by en through cwringhousaa must be attached. Da. Name end title of authortnd representative of Not Nate: Applicant completes only Sections I old R.faction applicant. III N completed by f.d.re?agencies. FEDERAL AGENCY PROCEDURES FOR SECTION SI K eppUcanf-supplied Inform/ton In Sections I and h needs to updstin$ti adlustrr+eA to IN No Mat Aden,action.the Faders+agency in=triplets Section 111 any.An explenetion for sedi lbsnf,dive, beret M•r� 11+4. becutive department or Independent agency Who $$. Name end telephone no.of Meryl tow who as program sdministrelion rstponsibigpr. provide more Information regarding this sdstensa. • OIL Self explanatory. $1. Date OW which Ands wt0 no longer be evellabis. • IS. Primary orgen+,•Uonat unit below department Wei 37. Check appropriate bares to whether Section IV M laving direct program management responsibility-. form contains federal nnaAu end/or attachment • of adOkiohat merle. 37. Office directly monitoring ter pogsn �, Use to Identity rnon•ews►d actions .risen Faders! SS For use with A- 5 action mikes only. Nam*ale rent identifies M kern er 30 N not applicable•a*rig lisphon•rt parson,erne nitre eaeure that epprsprl• wit suffice. eta A-p5 action his been skin--tf earn•as person shown In kern SS.wrfta "same".II not applicable. :f. Complete addrsa of admtnbtaring oft shown Ni write"NA tern 26. 30. Use to identify'weed actions when dtfr•rant from Federal Agency Procedure--epsctat conslderstionS Rd.rat application Identifier M Item SS. A. Treasury Circular 2052 compliant*. federal agency VIM $2. Sstf acpl•natory. Liss Amerts section Is amplify assure proper completion of Sections t and III.If Section 1 . where approptiote. N being completed by federal agency,all applicable Iona S2. Amount to be contrtbN.d during the first funding/ • must be ties In.Addresses of id d Information ury Raoq budget �►� � tion Ag.nd.'(SCIM'a)are provided by Treasury Det>'eR• by each contributor.Valve of Unkind meet to each agency.This form replaces If 240,which contributions wit be included. If the action is a . • win no longer be used. • change in dollar amount to an!sitting grant(a MA- S Oafg Circular A-IS eonnptiane•. Fad•rat sganc7 vAM as MA- Wen or augmentation),indicate nle only the amount . sure roper completion of Sections 1.11,and III.This form change. for decrees'''. enclose the amount M gas N enquired for notifying all ,Mewing cleiringhovaw she tenth's•s. Ir both basic and Supplemental amount are included,breakout In roman's.for multiple pro• major adiens on •fi provems reviewed under Ads. gram funding. use totals and show program break• Addresses of State*red ersa.rld•clearinghouses•n pro outs In remarks. Item definitions; 32a. amount ulded by Ole• to each agency. Substantive dif+•ranees awarded by federal Government; 32b. amount op- between applicant's request end/or cIsaringAOu •neon- pficent will contribute, 32c, amount frown Rata, If mendetiona, end the project as Melly awarded will tin". •ppticant Is not • State: 32d. amount from West •explained In A-05 notifications to dearin$house. government if applicant is not a local government C. Special nets. In moot,but not et States,the*45 State 32e. amount from any other sources. explain M dsaringhouse end the (T0 10112) Sellta are the same asmarWa. office. In such cases,the A-IS award notice to the State 33. Date action was taken on thb request clearinghouse will fulfill the TC 1082 award notice to. vuirem.nt to the State WCllt& Duplicate notification St. ate funds win become avellsbts. should be avoided. . STANDARD FORM 424 'ACE 4 (tarn ••r0: ••SWISS Mau • e1D11At 1t1011Tt,, VOL. A1. MO. 1411.-fuse JIAY ilk 1,74 • _19- • • • • NOTICES 32035 AvreceseaM N■Ctattrus No.M130 ►.The netpletet aball oblate apprvral by Oeeerassent • le • alum pity named by 1a0>art esaMaCt7eaM ataRYtfl* the Federal spo:tsorles theory fan tee tear of the Federal Oovosmeot when aveb third • Mal property to other projects seta the re- party Ia etbermes sligtble under emus, L. Tens •ttecbmtnt prescriber uniform elplent deterehlnss that the Property Is tae ststutee Such neer7atloa shall be subject to standard• governing ,,sang:meat of prop- leegrr,eroded for the purpose at the original the tot/owing standards: arty luraJahed by taw Federal Ooveroarteat or project v dLaot other projects shall be limited (1) The property shall be appropriately wbsne eon was charged to • project sup- 7 sponsored prof- 'deputed la the grant or other agreement ported by•Federal great or other agreement. acts (toe,grants or ether agreeeoea*a or pro- or et ervtae shade tis'sta to the recipient Pderal sponsoring agencies shell requpe re- grams that hays purposes cooaateat with m wetting. srpitata to Musrve them standards ttader Uwe authorised for support by the !edam! (I) The Pedant apoasering artery shall grants tad other agremeents and aball sot gonaortrig ateda7• terse duposfuos tastrucUoas•itnlo 120 eal- lmpoae additioaa) ngWremeats vales dpi- S. %%sat the real Property $0 so borer sods;days sitar the and of the Federal sup- •lLcalJy required by Federal law;The ieelpl- beaded as provided >a'• bad b above. the port of the project tat which It vas menur d oat may use IN owa property menateroest recipient shall request dispoatioa tastruc- U the Federal spoesortag agent-,tails to leave It•adards and procedures provided It observes lions from the Federal sponsoring &racy er drapea lsw tloa ertlone ent>sie the 120 on- us wcoujeDS of tats site Te cbm►at a at- to Successor ftideral sponsoring egeacy.The ender day period. the reetpteat shall apply uba:risest elan applies to subrsclpteats Y Federal sponsoring ageaey ab1J1 observe the the standards of subparagraphs lb sad •c naferred Y la paragraph g of the basic Mr. foUoviaf rules Is the diefeoUaa Inetrue- as appropstafe• dui, • Was: (I) Wbea the Federal Reasertag Weary it The-tonevrtag defaftioai apply for tae (1► The recipient may be pem/Med to is natures Its mat to use bye.the personal purpose or Una attachment: this title ate It ammpeasates the Federal. property shall be subject to the provinces •• Seal prvyeriy--Rest property Milne Ooeeramsat to as amount eempvted by op- toe toderalfyromraed aooaapebdebie property land. including land tmprovemeate. alnico p41a4 Use Tellerhl parc.atage of partsetp•• dtaeuesed to pairrapb 4.above. !urea sad appurtsr-ancs Marto. but es- ties to the oast of the original project to the (4) When title is transferred Nam to lb* Nutlet movable mschtaery and equipment. fair marten value of the property. Federal Ooneremeat to to • third party the b. personal p►ogsrty—Perooaal property (2) The recipient may be directed to alit prortaone of subparagraph flc(3)(b) ebeWd of say grad except real property.It may be the property under guldens's provided by be fotiotssd. tangible—hsetag physical exte teem.or infra- the Federal apoaaerlag agency and pay the b. Vas of otter tsagebte aowrspesdssts gIble—haTleg no physical ILliteaee,ouch se Federal tioeersIDeat us amount computed properrj fee baba the rr%purist AY Him. pateau, laveattoas Lad copyrights. by applying the Federal pereeztage of par- (3) The rectptest shall use the property s Woesrpt'labhe perrovint properly. Nee- tieipstion la the met of the original project is the projects program for witch It vas erpeadable personal property means tangible to the proceeds from sale (after deducting occurred as tong se bowed, obeys.? at sot personal property baying • useful life of actual and reasoaabfe selling and 1U-up as- the project or program soottava to be gyp. more that sae year and pjgytaittea oust peewee. >! any, from the sales proose4a). prod by Federal Node. WTbes so eager et$3M or More per vast Dcey t that reap. When the recipient le authorised or required beaded to the eetgtsal project R program, (eats subject to Cost Accounting gtsnderda to sell the property, proper bales procedures use recipient abaft use the property t• men. Soul emulations may use the CA21 stand- aball be'Mainlined that provide for amp/U. satcuos vitro its ether federsty sponsored Greet 1000 per wait and useful We of two boa to the latest practicable bad resit la •aunties.to the fofowiog order of priority: years.A recipient may use Its ova dednitioa the highest possible rehire. (a) AruAUes, la the foLloe-rag getter of of aooespesideb)e personal property provided /t) The rvclpleot easy be directed to trans- perlority: that Ube deOSrttUoa would at least tadvde all for hUe to the property to the Ftidmrol Doe- fbt Aetivluo sponsored by the same Fed:- tangible persoze)property as defaed above. ernreeat provided that to *web cars the seal agescy• t.repee•Lable personal property—!:'peed- recipient shall be entitled I. compensattes (t) Shared sat—During the Yoe Mast e els personal property Weft to all tangible computed by applying the rsetpteotl per- tseoeaesipt soaeapeadable pereoaal proper- personal property other sous aoaaapendaale -seatagr of parvcIpsttoa to the cost of the ty is beld for sae ea the project er promaa ptePart7• • program or project to the current fair martet far chicle It was acquired. the recipient s.daeas,property—Dula property means tame of the property. WWI mate It available for use on ether prey- property ester the control of any federal d. lsdnaly-o nrsl lacrotorpre.tatk pe-soaeJ acts ce preps= 1f sues 'user oat will sot avecy that. as determined by the bead pops-ty—Title to federalycvs.d property 'marten with the sort ea the project or thereof, to so longer required for Ito seed& remelt• meted in the Federal Oover5meat. program for which the property ens ort - ar the discharge of Its nspoasibtllttas. iteclpteats shall submit annually an Leven- sally enquired. Hest preference for sash f. Iegvusttoe cost of weltered wow. tory Mattel of federallyrorned property la other use aben 1s'ryes to ether projeete ar perwlebls personal property—Acquiftlea met their custody to Use Federal sponsoring program aponeered by She Federal agency •f as Item of purchased aoaerpendable pet- agency Opole completion of the areemeat lee% Srsnced the property; seeead prefe- seral property mesas the net heats unit or when the property Ia so logger seeded. sac. Mall be given to projects or programs price of the property Secluding the sect of the recipient shall report the property to sponsored by ether federal wanes U the moditestlons. attachments. sta:euorto• or tae Federal epon.eriag agency for Sunhat property Is *weed by the Federal Clovers- •uatliary apparatus actuary to male the agency vtiltsati•s. went, um en other activities sot sponaond property tamale for the purport for which ft U the Federal sponsoring beery has so by the Federal Oovernmeat ahaii be per- sas acquired. Other chutes such as the cart further peed for the property. It shall be enfeeble if authorised by the Federal Mealy. of Installation. traasportatton, team. duty de:lead sates and reported to the Oeatral Cher charges Mould be eeasidered>t appro- . fir protective la-transit lnaursaee. shall be Services Adraiatstriot Appropriate dimwit- petals'. Lacluded•ot excluded from Use wait bequest- ties lsttructtoos will be issued to the re- e. Dvpostttoe Of Other eoarrpewdeble Um cost la sceordaere van the recipient's dptent after aompleuoa of the Federal property—Into the recipient so eager regular se:trusties practices. agency review. . needs the property as provided to lb above. g. [u*tpt property--tempt property I Swap: property—Whet s atutory au- the property may be used for other aetini- sears ta.ngIbls personal property acquired Is thorny exists. (5 g. PL. 111-531, M3 Vi C. Use to eacerdanoe with the followIng steed- whole or In part wale Federal funds. sad 10521 title to sonespendabfe personal Prof" beds: galls is which Is vested la the recipient wttb• arty acquired with project funds. shall be (1) Wowespradable property with • watt o ut further obligation to the!rderaf Oovera- vested Is tae recipient upon ttoqutauoa tin- acgvirtteos cwt of less tae•117.000—The re. S ent*step: as provided In subparagraph is less It.le determined that to do so Is sot In cipteat may use the property for other setiel- below. Lien uscondttionsi mitts* of title furtherance of the objective of the Federal use without reimbursement to the Federal will be pursuant to say Federal legislstloa spannertog Meacy. Wben title Is vested to Oaveramect or sell the property sad re- ties:provides the Federal sponsorleg ageacy the nclpteat, the recipient small Sieve so tale the promote. with adequate authority. ether ebttg,tiea or accountability to the (2) Nowsapredeble persowel ropt'fi wets $ Ater propr-ty—Each Federal sponsoring Federal Ooteremtent for eta use or dlaposl- • salt srqutei:um coal of 81000 or sore— %poet than prescribe requuemeats for re- Leon e_cept as provided to •s below, The recipient say mute the property for etp:eeta concerning the use and disposition • Ot:.e. woaerpeadebte property—Mehen other uses provided that compensation is of real property acquired partly or wholly other aoseapendebie tangible personal prop- made to the original Federal sponsoring under grants aK other agreements Daley arty 1a sequfred by • recipient with project agency of ere sygetwat The amount of comt- otherea provided by statute.such require- funds, title shalt not be tales by the Fed- presentee shall be cornputed by applying •wtnte, as • aintmum• shall metals the end Oovernrseot but shall vest In the re- the percentage of pederel perticapettot 10 f•llewtsg: cIpient subject to the following eond:teens: the wet of the original project or program to • Tine to real property shall vest Is the t Right to sesesfet tells.-Par items of the current felt truniet value or the property ree:ptent subject to tae condition that the soneapendenle personal property having • If the reclpleot bas no need for the property roc:p:ert shall use the real property for the unit acquisition Cost of 51.000 or more. the and the property bas further use eolve•the autttorsed purpose of the project,so long ss Federa' sponsoring agency may reserve the recipient shall request disposition IaatruC- tt It seeded meet to transfer the cue to the Federal Leone from the original sponsorlag agency. • 01011At ISGiSTtt, VOL 41. NO. iat-4210AT. AVAP U. 2P75 -20- • • —...' Nome • • . ltessval Opoaeering &gamy shalt dam. darner.or theft Of SW property. My ks. fe tlw larva leant out of pnrctsromeata • OM wlether the property ma be used t* damage.or theft of soaexpeadabie property entered tats, In support of o swat or ether lase% the ways eoqutrem ins. U be I. shalt bs tnvvttigat.d and fully deeumeat.d: 5(reemeat. ?We laded.. Maputo,. claims. litttnmes% Kiss *Mtn that apac7. IM b the property •at *teed by the ladersi prows of ward.curt+Sva)uaUea or ether *i 1&bllft7 sf W property Mali be rep". Oovsrnment,the recipient shall promptly se• motion of a aoatreetuat nature Matters sea• std v the Oenernl 0er•sea► AdmissvitIOf WI the seders' rpon oring agency./de grnsternist vioisticia of law are to be referred r by Os rednal mew,?to determine'wanner• (b) Adetfaeee.r7 malaienaace prooeMvRS such low.Mate w lhdaral authority as may requirement for the property tests is ether shall be Implemented to kelp the property bore proper p ri,Mictbe. pederal sputa Tae sedersa sponsoring to good sewsitbn. 0. lt.etptens may t?'e tactr we were a• Won t7 shall Wu*taetreeUaas O the resist- 10) Wilts the Retpleat Ir sutherla.d or sent ptictae cod pro, dunes so.e•er,all m- ast se stet than 1)0 dee,alter the nHp1- tregvlred to sell the property. proper muss aplomb shell adhere to the Rasda?r art ae%ts mums •ad 110 Islbwlag premium prosoduroe stall be metabtbhed.bleb would tomb tb pararspts t sad 4. at gw55T$ provide for coMpttlUea to the want pilot'. et The reetpsent shalt eau:tabs s was or 01 IS so Serer ettod sr f!♦ispaitfea la- sable Lad noun V the bngbest peaaiW re. Woods,* of sooduct that taaM wars the ftrvttteas are sot loved within 1)0 safes- sera. performasce of as *Moen. ssnplatose Mar dbys OW the welplent'S nqueat, the T. Itspe+edabk personal property.—Title to agents engaged In the awarding and admts• twctpieat shalt soli tie property and wile- *spendable personal property a1 3! mot Y bustles of minuses wing T.dsrai teas. • Ilene St Fade»t sponsoring ogees) •a the recipient ups Lequbttbe It there b a No employes.smear or e45ot&ball participate •mount sompuad by applying to the sues residue threaten etsuc)property&welding is the .eleetloa. award or sdmtnlstrCUS5 Ot Pelese0s'the pereeb$e$e o Tellers) pullet• 01.000 la total sgrwate fair market value. s seats,%IS Moss Midas, Made are %red. Tattoo is the newt of the Original pro}Set M Iron kratnatloe or completion of the grant •bps,to Die taowledge,be or hie taamediate Smelt. the nd:ipieat shell he or*lbw agreement.and the property b set tangly.partners,or orgarlstfea Is which be . m retreat ited to deddvd and Malt Tres the Ted• seeded for any ether federally .peaaorod ce bb Unmet see Molly or partner tea • irel elees 0100 or eta pereset or the Teo' project or program.the recipient shall retain financial teterest or with •rem be b aegis. swat.whichever is Motet,for the roclpleat7 the property for me ea eenfederaltf mot.' ttattag or Ws any artsagemeat concerning Wiling and 10001101'spwass. owed actISlttss,or sell ft.but must IS either prospective employment.The Rclpteas'of. i1) U the?ecItieat 1 tarweiM IC Nil cam. compensate the Faders) Oov.rnmeat Sara.employees or agents abalt*titter mile- *1a property Wigwam*. the recipient stall for Is stare. nit amount of oompensaUos It ao swept petunia. fates or earthing be retmbureed by the MneOUs$ Neste suit) be computed to the one meaner as of meneter7'Wm from ereatnctore or peaa- apney wits as amour 'whist s computed senerpendable per.onel property teal contractors Such stonderda shall worlds by applying ter peretat•4•of the reelpfeettr 0./eteatt is p►ep'4. for Mbetpttoary scuons to be applied for vb- partielpatba Ii the soli or the original groat a.lnoe*ttotu oaf patents—ft any Warms lotions of sues standards by the secipteste project or program to the Current rale'whet produces patentable Imms, pewit nuts, *dicers employes or sena. 'she al the property. ph. a7 rseeeaable proms.. or tavrsttens. le the scrum of b. All procurement transactions obeli be shipping or tabor storage scab Mewed. wort .poOao?M by the Federal Oe•arsaeat. enduing Ia s manner to provide. to Ys le) It the leelpleot b leetr letod to etas!- dare)tart shall be promptly sad fully mart• saesimum asst practical, open sad tree fete (spew of the property. the rselpeet al y the Federal 'ponsorlop wary Dalai esaipeUUea The wittiest Mould be alert WWI he relnbuPwd $7 the Federal apoaser thew Is a prior edreeasst between the re- to orpsnirattocal setfUtte of Istersst or teas• for 5(5557 err Stab rotle Sscuryed IS Ile ciptest So•• the Faderel saneattsg 5(eae7 oempattn.e pasertses among aoatrwCta42s ttpsNUSa. .a dispattlos of such Items. the P.dmral Oat may restrict or eliminate eersapatIUoa t Property *ssaotereseet 01.esd041 M sponsoring &geat7 shalt determine tartlet w Whirvtes rsveln trade Is order is sm. seoleTe dahte p epertY—The reeppleat'O protection on the Invention or dtsos'sry shall tune °b}.ctln contractor pertorsmanso sad pop.rty naoe4ensat standards 10r seats• 10 sought. The Federal sponsoring spumy •tmtnate unfelt mmpettlIet ad'astbgt.sea- readable pinions)property shall fagUSe the will Wm determine bow the rights Is the la- tractors that Meotop or draft eq.cteceUelea. tsflowteg procedure requirements: motion or dbceesr7—fnelvdtag rights wader irqulr.tnsns, seleatnb d wort. thefts- II) Property records 'half M Italste1sid say patent laved thereon-4nel)M allecavd toes for hide and'* requests tot prt;trLis secw ewly sad ski))Iselude: sad sdmtalatareg to order O protect the pub- about!be excluded from sompetl5g to muds Di) A due 1pties of the property. Its faterast soasistest with •0.eeram.at ►prroeerwtmeras. Aw+rle shall be rude se Ye (1) td&avfaetuRre sons) Cumber, .°6421 Talon% Tollty" (Prwideatl U,aoroodum 1lddetlefferor obese b1{/Oter b reemponelva •ua . led5rs! Sleet svmber. aattenal for Wads at !smutty, Depertreab ant to the solicitation and Is mast advantagsw Slat suslp,r erthn MehUOat'ea s•m• Asturias. Avgvet $1, 971. toe ststemeat of to the recipient.price Lad otter factors sne- Mr. Oe..rnmeat patent Policy or printed Is SS saved $olIcttetlens atoll clearly Net farts (e) Source Of Y42 property. *selvdta( p.. 10110). all •quirtowel that the bidder Silage sort gnat or ether agreement swab*,. b. Copyitbts—lacept or otherwise paw tulllll Is order for his irtdioter to 10 sooty- COI Wbethso title ens is the metpleat Or Willed th the twos and senditlotes of the clod by the recipient.Aa7 sad all bids alien W 7ederel Oo,voasst oreemeet.the author or the recipient emcee- May be rejects"obis It Is IS the Repast's (s) Aequlalties Isle (or des roretee . U Notion Is free to copyright soy toots. pub- Sitarist to tb M. the property was tunush.d by the Fastt� tfeath:m or other sopyrl Dtable materials a Al) r.clpienb shall sesWlah preeSrs- Oeveraaent)sad Net teceloped Is the course of or under a P.S. went praerdwes that provide tor.at a flats. If) pacelet&ge lit the 500•f the budget Oral agreement, but the Federal sponsoring forum.the following rewashing requirements pear) of Telma'parttclpstfoS IS the Net sl ivory Mall ,.lens • royalty-free, loess. (1) preporrd prenyrement *Wow *►s)1 the project er program for watch the prop- elusive and Irrevocable Welt I. nproduee, fellow a prwadure to assure the avoedssea art? •w sequtred. tree% app)soble to prop- publish. or *tber.is5 um, sad to suthorse of purSAasing uaneems soy or duplicative testy lurnbh5{by the Federal Oo.etnmeat.) *then to wet.the wort for Oovernmeat put. New Slime appropriate. as snayas shalt (g1 Location. me sod moralities of Ys be et►de of Imao and purchase,altereatno property sad the dab t'be taf°rmation was to determine watch would be the man npoetad. Arte misia,O.-Crcwasa$1..•410 seonomte 1.pr.etkal procurement • (b) Van arqubtUosart. *bett7aerteR Ratrbatl• (b) $blltitsUons fw goods sad monies' II) Vttlnatr Obpaltlea tits. Iac)udisg. shell be beard upon s clear and 555%,•10 Saw of sisposal sad airs pile,or the method I.This sttachmeat provides atandatds for deecrtptiee d the seohnin1 requlretrusb we'S to Melanie,current tat ws►tet value taw by recipients In establuhlag procedures gee the enetensl, pro"uct or ionise to be letere r recipient sempnaata the T+deral for the procurement of supplies.pulps.at procured tea s description shall set. lo dpenerning agency to Is sham construction and other wniew vitt Federal sompeUU.s procutenenb, motels Natural 1b) bossily owned by the rederel Ooe- funds These standards are?unstated to en• which unduly restrict corspeUtIOO. "Prowl moment must be marled to lsueat. Fed- auto that such naterlsla and sensate are*b• acme ar equar dnertptforu sal 15 awed oral wsrnhlp tamed In an effective wino*? and Is *sm• we s reins se Moose the performance or I)) A physics)taeentory of property shall pittance with the provisions of applicable Fad• other ea!ttnt,.qutnrnenb of a procurement. be taken and the results re oacllsd wItb the ere! Uwe and 'smutty, order. No 'Wetness'" and alma so used the specific features eft the Property weerb► st West once every two procurement standards or requireneas shall awned trend whit?most De met by bidders/ pecan Any dIderences'woven quentlttes wee- be ',spewed by the Federal eponeoring ages. *germ then be C11.rb spedted' {nmtned by the phrases) Inspection and ekes upon recipients unless speeiaeWy ire• iii Positive effors shall be toads be Ye those shown is the recounting records shall gutted by Federal statute or'm.cuttes orders recipient ire email maul bvelOra and ml- be Itssettpted to determine the causes of $ The standards contained It this.trace- aorlty•osned buatnw sources of sup*ltes the Slleerenee The wclpknt sfW.1a eoanae• spent do sot renew the recipient of the SOB' sod ar.teee Such suers should allow theme tl*n one the tr.eetory.verily the seteunee. trectuil mpoastOtlltles arising ceder rte moires the maetmum memoir opportuatty N srrtn% artlItaatIoo sod eentrsved need foe contract. The recipient is the responsible iv• to wimple to 'entracte vttibtng Potteral the property. thorfty.without mows,to the Federal ass. fusss. 14) A control system shall be In effect 1a esorlrg agency resitting the oettlerneat sad 141 The type of procuring Instruments Mews •d.quate safeguards to prevent toss. Mtlid■ttlea of all soatrsetus) and slminls• weed. e4, Seed price mstre.cm. Net MAD. • Meld' 11103111. VOL IL NO i11-•JIISAY, JULY !0, $574 • —21— NOTICES 32037 .btutabte onatraets, purebam ceders, goer- the aoateaet may be ersa1abed to ream% sons (M Cis, Part 4), Dade► arettos 3011 •five tootncb. WW1 be determined by the as well as conditions were the eerie et say of the Art. each sonusetor shall be ra- e vectpient but mast be appropriate for the be translated aesuee of oireuense►aesa be- attired to compute the rim of every ae• pertlouiat procurement sad for promottng pond the control of the amlaesr. the chalk and laborer Oa e taste of•itemised the bast Interest of the program lnvoteed. 4. L all etDOtrates foe aaostrtsiloa of L- work day at 1 boors and a standard week tae aoat•plta-s•peroentegeofoost" smith- salty oblymoeaeDt awarded ter fore taaa week ed 40 boors- west is erasers Of the MI of contracting shad Dot be used. 0100,000, recipient' shall case.* the bond- staaetard wottday or workweek s permianbis (1) Contrail shat be =ode soil With Ts- tai reagviremwas pro+eded is a.._.`—r"t i peoetded tas1 the worker is eempeaaated at a aponsibie contractors who pram the pO- N ibis wow1•►", rate of tee tee' than 1% Ames the bade Nauoaal ebl)Jtl to perform nueoaattuny 1 All contract'awarded by re'cipie'nts tad rots sr pal tar W bowl sorbs/ is on mu Mader the tarots sad conditions of • pro. elaeir aontraesors ar bob sties wow a e[1 bows ID say matador lay a 40 bows posed proetlssmeot. Consider Uoo shall value of more than 610.000. shall copere 6 be the workweek. Berth" lot of the Aet le lfsen forth matters as=nutria t tntairttl. proviisoo peg uirtag ocrsapllaaoe onto Idac+o• applicable to construction sort and provide' ceased of past psrforeanee, *easels) sad Use Order *1841, *titled 'Squat lenploy• that no laborer or me ltatie••hatt be required eaebniaal reaourefu sereaabtUtl 40 Other meat Opportunity."er amended by>demitim to sort be •wvovaetaga sr seder warkiag eureenarl leao%raes. Order*2311,and em aupplemeated In Depart- 0o04JUo0s which are ttasanitar7. hummers (I) All Proposed sole source aontrsIY or seat of Libor regulations (41 CM,Port w1), a dangerous to his besita sad misty as ao. • ',Isere only one bid a propaaat is received a.All acoiraota sad swages rid to seers of lvmsnert order 4oeatruetion •stall sad pools which the id *t 00 erl.un eWrt L raft• $3,000 ter anseructton 0r "pate award"by halts Aaadarda promu1gsted b the Mss• piad.4o brat a {5.000 shad N etsh)eet . recipients and eubrse:i tents shall include • �7 off loose. Toeas ngwtretasaY AO scot pace spprav'eit at tae QfecreUOO Of ids Pod- +quiet for compliance with the Copeland 44p27 a the pwcltsses of auppuw tar data- eral epoarortag agency' .Aatt-Lick saw. Act (1$ DA.C. pa) as Vials a artier ordinarily sealable oa the (7) Some form of prim ti raw every >a DepertDaeat of tabor epab naartet,er eentraer ear traepartaUba 6berutd be tosser to connection with every proewment action trace •taiyele may be Pe(viatb01 (18 CrI- part 1).rib bre Ora w traasmtsaloa O 1ateUndoes. •acompished is various ways,Indudiag tors etda that sorb ogro rector R eut;r,MW b. Connects a tei'eetaenY, the principal aorr arooa of price quotsUons submitted. shall be prohibited tram toduetag. by any 'WPM"et.wbfek s to crate.develop or!s- awkat prton an4 mlauiar rostas. together imam,any perms employed is the eoartruo. Prove products.preceraas De Methods; sr for ertttr tC+aovats Cost artalyate ts tae avtss void,eomp3etloa,a"pair Of pubmtc sot,ta aplorsuoo tato Selig that directly aoeea SIT;esa7tsUOn tat taco etroeOt of eras to live vP eel part of the aoraproatuaa to public bean&safety a welfare,a eoatraeY dwtermtae raaonahkas, a Inability sad vblcb be le otherwise eatlUad The ese7plebt ta the Dell of aclenar a tachaologl to watch �Ov.bU)h, than report 611 suspected a reported viola- there bee bees male stgntaaaat erperbaaa le) Procurement records sod !le'fat Our. bons lathe reefers!•pooaortag ageaq. outside wort fvadsd >h Federal ttr"tst- eAases Is suss of 010,000 shall tachide the 1. Whet nguired by the Paderal program .se,es Skill eeetaL a artier to the olaet Shat eslbwtnl: legislation, all construction contracts hatters rsgvdIag rtgbes as InseaUOa sad (a) Pars for contractor•rlee&m: awarded by the recipients and subrecIptenY materials generated soda lba aontrtdt do • (b) inattention for leek of competition et more than 41,000 than'Daluer a primmer sg'aeaoent an rublace to the redsla.leas ls- wben e6mpetitlee bids se teem are mot for oomrp77aoce with the Davis-s core Act (40 sued by tae redertl spoawrrng agesey sod Ovssintfd: D.S C.Pita to a-7) and se'supplemeaead the rsctpteat. Tim aootraetor saw N id-vleed as to the surge of additteaal *$foss•- (e)Seale ter•card eons or prim. 1lepvtmeat Of Lataar rslulations (!{ C7'fL also ��lase rdtMrs. le) A intern for contract admJoiet,atton Part 1). Dada thla Act mntrarlcre dull be ! r adds/ tes contracts (tvteept thews titan be maintained be enure contractor required so pry sage, a Isboree add ma_ ct0.000 er lids) •warded h of thes eo0formance with terms, condlttena and chalice at a rate Sot lets{than the miatmtts sass toclude • er) ova k the "see•peeiStatlone et the tontraet, and to ensure Volta ipeethed Is$ it determination made the nLoeluae the Paderal spotsaertag ee ISM erfegvate and timely foUowup eat all patty- by the Secretary of Labor to addition.eoa- d amt. &melons than be moulted to pay rater tot the say aftroUe duly Ocean/of the Dotted*Mew 4.4. The recipient shall 'Delvde.In addition tam this Oros a awe. Toe rxlpleot eau _ _ to provisions to following sound and complete puma a copy of the monist prevailing sage sets,. papal sad nacres of i rolatraete- •mgr provtsfors in all determinsuoa tared by the Department of sbkb s p soatrects•Tome proeleloas shall also be OP- labor Is each •otfettstton and the award 1 perUoent to a specIbe r0• plied b subcontracts. of a contract "ball be andttfoned upon the �s tttr tae purpose ot eoatfni estate. 6. Cootrsets in tacos of 1110,000 ale l)SOS. acceptance Of the wage deterartaatfoa. Toe examtnatiota,excerpts sad tnn"enpttette. loin eontraotual prot'e'ins se conditions recipient shall report all suspected • Vc• 3. S Of 41 te sad eubl raw of amounts In that will silos for sdrninwrUve. nonuse- ported trlc3etfone la the Federal epooealag ewes of {)00.000 shall trontata • prevlstea husl or legal n►medise to instances is Womb ageing. that nqutrm the recipient to agree to arm. contractors Mobile or breach contract tams. !.vt-bere spptteable,all contracts awarded ply silk aU apptto•ble standard.. ceders M and provide for mush remedial actions ae by recipients Is exrse of$3.000 for construe- reru)ktl00a *tsved purtruant b the Clesa Aar easy be appropriate. trot for tracts sod la woes of 0.100 fa Let of 1870 (43 DA C. 1137 et"p.) egad the b. AU eontreet is excess et 110.000 shall ether contracte that Involve the employment Pedersl 1blluttoa Castro/ net Ili oeamla suitable provisions for termination Of meeb►nfes or laborers.than'Delude a pro- VAC' slat et sop.) Os aareado. t'felst►Ons by the recipient *Deluding the manner by vision for compliance with sections 100 and *hall be reported to the Pedies) sponsoring which terminaiion will be effected and the 107 of the Contract !Port sours and gaiety •sear sod Use Argistal Omar of LN was- bass for settfamteat In addition, Duos con- Standards Act (40 VA C. 1374301 as asp- eLs+nasratal ProteeSas/lgesq. tracts{bat)deae:rlbe eeadluoas easier wIsitb plemented by Department of labor rsrgu*s- Pb 1 Dort{llt0s Piled 7-10-74;1174116M1 • • • • • • KOMLAL !ICtfftt, VOL 41. NO i4$-.AIDAT. ART SI, 1471 • L 4.ornmreorr ataR•eG'OPT e•:WS t•MOM .�,�_ •05.550 • 00-0. Handbook 1300.20 U.S.Department of Housing and Urban Development Office of Community Planning and Development Program Participants and Departmental Staff Cost Principles for Nonprofit Organizations ( A Reprint of Office of Management and Budget Circular A-122 ) CFFO:Distribution:W-3-1,R-1.R41,(Special) • EKi-kki tT • 1300.20 1-1. ALLOWABLE COSTS. Generally, costs must be necessary, reasonable and directly related to the grant. In addition, they must be legal, proper and consistent • with the policies that govern the grantee's other expenditures. Any credits such as purchase discounts, rebates and allowances, adjustments of over payments must be deducted from total costs. In some instances, amounts received from the Federal Government to finance organizational activities or service operations should also be treated as applicable credits. 1-2. COMPOSITION OF COSTS. a. Costs applicable to a grant program may be direct or indirect. There are no strict guidelines for classifying costs as direct or indirect. In most cases, the accounting system used by the recipient will specify which types of costs are direct and which are indirect. The important thing is that grantees treat costs consistently for all grant programs. • b. Direct costs should be identified specifically with a particular grant. Typical examples are employee compensation, materials, equipment, and services furnished in connection with the specific grant. c. Indirect costs are those incurred for common or joint objectives that benefit more than one activity or cost objective. Typical examples are depreciation or use allowances on buildings and equipment, the costs of operating and maintaining facilities, and general administration and general expenses, such as the salaries and expenses of executive officers, personnel administration, and accounting. Indirect costs should be allocated in a manner which will result in the grant program bearing its fair share of total indirect cost. To do this, a grantee must develop an indirect cost • rate. This rate, expressed in percentage terms, is applied no direct costs in order to determine the amount of reimbursement a grantee can obtain for indirect costs. A predetermined rate may be negotiated for use in awards where there is reasonable assurance that the rate is not likely to exceed a rate based on the organization's actual costs. -1- • 1300.20 1-3. COGNIZANT AGENCY. .a. Unless different arrangements are agreed to by the agencies concerned, the Federal agency with the largest dollar value of awards will be desig- -'- nated as the cognizant agency for the negotiation and approval of indirect cost rates. After a rate has been agreed upon, it will be accepted by all Federal agencies. 1-4. INDIRECT COST PROPOSALS. a. In order to recover indirect costs, the grantee must have an indirect cost proposal, which is the documentation prepared by an organization to substantiate its claim for the reimbursement of indirect costs. The proposal should describe the services provided and explain their relevance to the grant programs; list the expenses to be charged to grant programs; and explain the method used to distribute the costs. b. A nonprofit organization which has not previously established an indirect cost rate with a Federal agency is required to submit its initial cost proposal to the cognizant agency as soon as possible after an award is made. Organizations that have previously established indirect cost rates must submit a new indirect cost proposal to the cognizant agency within 6 months after the close of each fiscal year. 1-5. MAJOR SUBSTANTIVE AREAS COVERED BY THE CIRCULAR. a. Clarifies nonprofit organizations not covered by the circular. b. Permits Federal agencies to request exemptions from the circular. c. Establishes procedures for negotiation and approval of indirect cost rates. • • -2- • 1300.20 d. Permits Federal agencies to accept a substitute system for documenting personnel costs through means other than personnel activity reports. e. Clarifies provisions covering the allowability of costs for unemployment compensation of workmen's compensation and costs of insurance polices on the lives of trustees, officers or other employees. f. Makes allowable any increased costs of pension plans caused by delayed funding. g. Clarifies the value of donated services used in the performance of a direct cost activity. h. Establishes a new definition of capital equipment cost $500, useful life or more than two years. i. Permits organizational costs to be allowed when approved by awarding agency in writing. J. Allows Public Information Service Costs as direct costs with awarding agency approval. k. Clarifies rental costs. 1. Deletes the travel cost requirement for prior approval for domestic costs. 1-6. EXCEPTIONS. OMB may grant exceptions. However, in the interest of achieving maximum uniformity, exceptions will be permitted only in highly unusual circumstances. Attachment A: OMB Circular A-122 Cost Principles for Non-Profit Organizations. • 1300.20 • e Tuesday July 8, 1980 • • Part III -'� Office of Management and Budget Circular A-122, "Cost Principles for Nonprofit Organizations" / • • 48022 Federal Register / Vol.45, No.132 / Tuesday. July 8,1980 / Notices OFACE OF MANAGEMENT AND • s'public comments.The more p significant .cognizant agency and the recipient to BUDGET changes to the basic Circular and negotiate when there is no basis for Circular A-122,"Cost Principles Attachment A include: determining the fair market value of the P i.Paragraph 2."Supersession"was services rendered,and to permit indirect Nonprofit Organizations* added to the basic Circular to make It oasts allocated to donated services to be AGENCY:Office of Management and clear that jhis Circular supersedes cost charged to an agreement or used to meet Budget. principles'lssued by individual agencies, cost sharing or matching requirements. Budge t Final Policy. 2.Paragraph 4 of the basic Circular 4.Paragraph 31,Equipment and Other has been amended to make It clear that Capital Expenditures,was changed. • the absence of an advance agreement on Capital equipment Is now defined as SUMMARY:This notice advises of a new any element of cost will not in itself having an acquisition cost of$500 and a OMB Circular dealing with principles for affect the reason3bieness of allocabllity useful life of more than two years. determining costs of grants,contracts, of that element Also,this paragraph 5.Paragraph 26.Meetings, and other agreements with nonprofit was amended to make it clear that Conferences.The prior approval oryaniiationa. where an item of cost requiring prior requirement for charging meetings and The Circular is the product of an approval is specified ia,tbe budget, conferences as a direct cost was interagency review conducted over a approval of the budget constitutes deleted.A sentence was added to make two-year period It purpose is to approval of the cost. it clear such costs were allowable provide a set of cost principles to 3.Paragraph 5 of the basic Circular provided they meet the criterion for the replace existing principles Issued by has been changed to remove any doubt allowability of cost shown in individual agencies.These have often as to which nonprofit organizations Attachment A. contained vs. and conflicting would not be covered by the Circular. d Paragraph 27,Organisation Casts. requirements,and created contusion Now,Appendix C to the Circular list a31 was amended to provide that among agency administrators,auditors, exclusions, organization costs may be allowable and nonprofit officials.The new Circular 4.Paragraph 3 was added to the basis: when approved in writing by the will provide a uniform approach to the Circular to permit Federal agencies to awarding a p request exceptions from the �S ry' problem efficiency determining better and requirements of the Circular. 7.Paragraph 30,Page Charges in promote efficiency and better Professional paragraph E.Z.was added to fessional Journals,was revised to understanding between recipient and Attachment A to cover the negotiation provide that page charges may be the Federal Government. e8 and approval of indirect coat rates,and allowable. tFFECTWVE OA1I The Circular becomes to provide for cognizance arrangements. 8.Paragraph 37,Public Information effective on issuance. The more significant changes to Service Costs.was modified to make FOR FURTHER INFORMATION CONTACT: Attachment B to the Circular include: public information costs allowable as Palmer A.Marcantonio,Financial 1.Paragraph 5,Compensation for direct costs with awarding agency Management Branch.Office of Personal Services,was modified to: approval. Management and Budget,Washington. a.Permit Federal agencies to accept a 9.Paragraph 43,Rental Costs,was D.C.20503,(202)395-4773. substitute system for documenting rewritten to: SUPPLEMENTARY INFORMA1101C Before personnel costs through means other a.Make it clear that rental costs the Circular became final there was than personnel activity reports. under leases which create a material extensive coordination with the affected b.Clarify provisions covering the equity on the leased property are nonprofit organizations,professional allowability of costs for unemployment • allowable only to the amount that the associations,Federal agencies and compensation or workmen's organization would have been allowed others.All interested persons were compensation,and costs of insurance had they purchased the property,e.g., given an opportunity to comment on the policies on the lives of trustees,officers, depreciation or use allowances. proposed Circular through informal ce other employees: maintenance,taxes,insurance,eta consultations and a notice in the Federal e.Make unallowable any Increased b.Clarify the criteria for material Register.In response to our requests for costs of pension plans caused by equity leases. comment,we received about 100 letters delayed funding. 10.Paragraph 51,Travel Costs,was from Federal agencies,nonprofit d.Delete a paragraph dealing with amended to delete the prior approval organizations,associations,and other review and approval of compensation of requirement for domestic travel.In interested members of the public.These individual em loyees, addition to the above.a number of comments were considered in the final 2.Paragrapna Contingencies.,was editorial changes were made to the version;,f the Circular.There follows a changed to make it clear that the term original document. Summary of the major comments and the "contingency reserves"excludes self- action taken on each insurance reserves or pension funds. Suggested Chu es Not Considered In addition to the changes described, 3.Para aph 10 was modified Is NeseesaFy. other changes have been made to provide that the value of donated . Comment Several respondents -improve the clarity and readability of services used in the performance of a questioned the provision that,for"less the Circular.To the extent possible,we direct cost activity shall be allocated a the n arm's length"leases,rental costs have tried to make the language of this share of indirect cost only when(a)the are allowable only up to the amount that Circular consistent with that of cost aggregate value of the service is • would be allowed had title to the principles for educational institutions material,(b)the services are supported property been vested in the grantee (Circular A-21),and State and local . by a significant amount of the indirect nization.In their opinion this rule governments(Circular 74-4). cost Incurred by the organization,sad will result in unnecessary cost to the Summary of Significant Changes: primarily direct cost activity is not pursued Federal Government.since it would primarily for the benefit of the Federal encourage an organization to lease Set forth are changes that have been Government.Provisions were also space on the commercial market at made in the final Circular as a result of added to this paragraph for the • higher rate. —1_ • • •Federal Register I Vol. 43, No..132 f Tuesday, rely $. 1930 I Notices 46923 Response.The cost principles IN employer relationship in the individual agencies for nonprofit designed to cover most situations; arrangements for this assistance,nor are organization. however,there are always exceptions there committee members normally a.Applicability.a.These principles that must be considered on a cue-b • reimbursed for such services.Further,it shall be used by all Federal agencies in can basis.The Circular contain,,a was pointed out the committee members determining the costs of work performed t provision for Federal agencies to request spend many thousands of bouts outside by nonprofit organizations under grants. ! exceptions. the organization's premises conducting cooperative agreements,cost Comment Several respondents research. reimbursement contracts,and other . questioned why interest is not an, ' . Response.It would appear.that this contracts to which costs are used in allowable cost,since it is an ordinary type of committee arrangement would prime administration.or settlement and necessary cost of doing business. not be considered in the determination All of these Instruments are hereafter Response.It has been a longstanding of the organization's indirect cost rata referred to as awards.The principles do policy not to recognize interest as a cost provided that Federal agreements do not not apply to swards under which an However,this policy has recently been bear an unreasonable share of indirect organization is not required to account revised for State and local governments . cost.However,the cognizant agency to the Government for actual costs In Circular 74-1Vwlth respect to the cost will be respoasible for evaluating the Incurred. of office space.The revision provides allocation of indirect cost where there b.All cost reimbursement subawards that"rental;rates for publicly owned are committee-type arrangements on a (subgrants,subcontracts,etc.)are buildings may be based on actual Costs, use-by-case basis, subject to those Federal cost principles including depreciation.interest, • applicable to the particular organization operation and maintenace costa,and Comment One respondent suggested concerned.Thus,if a subaward is to e other allowable costs.This revision was alit,wherever possible the language in nonprofit organization.this Circular ender consideration for some time.It the Federal Procurement Regulations bs' shall apply, a subaward is to a used for nonprofit organizations. was studied extensively by OMB,the Response.The language In the Federal commercial orrgganization.the cost General Accounting Office and others. Procurement Regulations was principles applicable to commercial and considerable analysis went into its concerns shall apply,if a subaward is to formulation.Suggestions for extending it designated primarily for commercial a college or university,Circular A-21 to nonprofit organizations would have to firms,and Is not necessarily well suited shall apply;if a subaward is toe State, be examined with equal care.This has to nonprofit organizations.At the local,or federally recognized Indian not yet been done,and we were suggestion of the General Accounting tribal government,Circular 74-4 shall reluctant to further delay issuance of Office,the nonprofit cost principles apply• this emu, were written to conform as closely as 4.Definitions.a."Nonprofit Comment Several respondents possible to those of educational questioned why public information cats institutions(Circular A-21),and State t r trust. so ocia means any cave,or oh q y p trust,association,cooperative,or other were not allowable as an indirect cost and local governments(Circular 74-4). organization which(1)is operated Response.Public information costs jobs I.Ludas, • primarily for scientific,educational. an often direct services to an Chief Financial Management Ii ns& service,charitable,or similar purposes organization's other programs.They are in the public interest(2)is not allowable,however,as a direct charge [COWIE No.A-4I - organized primarily for profit and(3) when they are within the scope of work Ism 27,1sstt uses its net proceeds to maintain. of a particular agreement. To The Heads of Executive Improve,and/or expand its operations. Comment One respondentsuggested For this purpose,the term"nonprofit Departments and Establishments that smaller grantees be excluded from Subject:Cost principles for non fit organization"excludes(i)colleges and - complying with the Circular. nonprofit universities;(II)hospitals;(Ui)State. Response.Similar rules for the 50 organizations. local,and federally recognized Indian selected items of cost would be needed 1.Purpose.This Circular establishes tribal governments;and(iv)those regardless of the size of the grantee.To Principles for determining costs of nonprofit organizations which are the extent possible,the Circular grants,contracts and other agreements excluded from coverage of this Circular provides simplified methods for smaller with nonprofit organizations.It does not In accordance with paragraph 5 below. grantees. apply to colleges and universities which b. "Prior oppraval"means securing Comment.One respondent said the are covered by Circular A-21;State. the awarding agency's permission in requirements of the Cost Accounting . local.and federally recognized Indian advance to incur cost for those items Standards Board should be applied to - tribal governments which are covered that are designated as requiring prior cover contracts with nonprofit by Circular 74-4;dr hospitals.The approval by the Circular.Generally this organizations. principles are designed to provide that permission will be in writing.Where an Response.It is unlikely that the type the Federal Government bear its fait hem of cost requiring prior approval is of grantees covered by this Circular share of costs except where restricted or specified in the budget of an award. - would have contracts large enough to be prohibited by law.The principles do not approval of the budget constitutes covered by the CASE.In the event that attempt to prescribe the extent of cost approval of that cost. they do,however,the regulations of the sharing or matching on grants,contracts, S.Exclusion of some nonprofit CASE would apple. or other agreements.However,such cost organisations.Some nonprofit Comment.One respondent said the sharing or matching shall not Tke organizations,because of their size and allocation of indirect cost to donated accomplished through arbinium nature of operations,can be considered services would pose a tremendous limitations on individual cost elements to be similar to commercial concerns for difficulty to the organization.The by Federal agencies.Provision for profit purpose of applicability of cost • organization relies on a corps of or other increment above cost is outside principles.Such nonprofit organizations approximately 8.000 committee members the scope of this Circular. shall operate under Federal cost to carry out obligations in response to 2.Supersession.This Circular principles applicable to commercial Government requests.There is no supersedes cost principles issued by concerns.A listing of these -2-. 46024 Federal Register / Vol. 45, No. 132 / Tuesday. July 8, 1980 / Notices . organisations is contained in S.Applicable credits clients,the pubic at large.and the Attachment C.Other organisations may •Advance understandings Government. be added from time to time. 8.Direct Costs d.Significant deviations from the 8.Responsibilities.Agencies established practices of the organise ale responsible for administering programs G Carr which may unjustifiably increase the award poets. that involve awards to nonprofit D.Allocation of Indirect Cats and e.Allxnbk costa organizations shall implement the Determination of Indirect Cost Rates a.A cost is allocable to a particular cost provisions of this Circular.Upon i.General objective,such as a grant project.service,er request.implementing instruction shall 2.Simplified(location method other activity.in accordance with the relative be furnished to the Office of 3.Multiple allocation base method benefits received A cost is allocable to a Management and Budget Agencies shall 4.Direct allocation method Government award U U is treated designate a liaison official to serve L Special indirect coat retee consistently with other cab incurred for the the agency representative on matters d Negotiation and Approval of Indirect Cat same purpose in like circumstances and U it: • relating to the implementation of this Rata (1)b incurred specifically fat the award. 1.Definitions (2)Benefit,both the award and other work Cir•cular.The name and title of such And can be distributed In reasonable representative shall be furnished to the 2.Negotiations end approval of rates p proportion to the benefits received. Office of Management and Budget (Circular No.A-122) d(3))L�ss sew the overall do of within 30 days of the date of this Attachment A thou* Circular, relationship to any particular cost objective 7:Attachments.The principles and General Principle. cannot be shown. related policy guides are set forth is the b.Any cost allocable to a particular award cY t A.Basic cenaiderotiamt • or other cost objective under thew principles following Attachments: 1.coorposition of tota/ooeta.The total oat may not be shifted to other Federal awards to Attachment A- General Principles of an award is the sum of the allowable overcome funding deficiencies,or to avoid . Attachment B—Selected Items of Cost direct and allocable Indirect costs less restrictions imposed by law a by the terms Attachment C—Nonprofit applicable credits. - of the award. Organizations Not Subject to This 2.Factors airman:allorobility of oasts 1.Applicable credits. Circular To be allowable under an award oats most a.The term applicable credits refers to those receipts, � ts,or reduction of ex diturss 8.Requetb for exceptions.The Office meet the following general criteria: which operate to offset or reduce expanses of Management and Budget may rant a.Be reasonable for the performance of the items that are allocable to awards as direct exceptions to the requirements of this sward and be allocable thereto ander these or indirect come.Typical exempias of such Circular when permissible underc�nform to any limitations or exclusions transactions arc purchase discounts.rebetef existing law.However,in the interest of or allowances,recoveries or indemnities one achieving maximum uttifotmity, set forth in these principles or in the award losses.Insurance refunds,and&dim/mints of u to types or amount of cat items exceptions will be permitted only In c.Be consistent with policies and • overpayments or erroneous charges.To the highly unusual circumstances. procedures that apply uniformly to both extent that such credits accruing ce received by 9.Effective Dote.The provision#of federally financed and other activities 011ie they the organization relate to allowable cost this Circular are effective immediately. organization they r as bet reduction to the cash Wend either as a cost reduction a cash rslmd es Implementation shall be phased in by d.Be accorded consistent treatment appropriate. Incorporating the provisions into new ' e•Be determined in accordance with b.In some=tlancar,the amounts received awards made after the start of the generally accepted accounting prindciples. form the Federal Governmentto finance L Not be included as•a cost or used to meet organization's next fiscal year.For organizational activities or service operations existing awards the new principles may cat sharing or matchiry requirement deny should be treated as applicable credits ex be applied U an organization and the other federal y financed program in either the Specifically,the concept of netting saes PP current or a prior period credit items against related expenditures cognizant Federal agency agree.Earlier . g.Be adequately documented should be applied by the organizeton in implementation,or a delay in . 3.Recappable costa.A cost Is reasonable determins the rates or amounts to be implementation of individual provisions if.in its nature or amount,it does not exceed charged to Federal awards for services - is also permitted by mutual agreement that which would be Incurred by a prudent rendered whenever the roadie. or ether between an organization and t e person ander the drew:fiancee prevalli�at' resoarcxs used in providing anrh serviota cognizant Federal aged the time the decision wu gads to Incur the have been financed directly,in whole or 10.Inquiries.Further information costa.The question of the reasonableness at is part,by Federal fiords conce this Circular may be must specific costs t be scrutinized with rni� particular one in connection with a(c)For rules covering program income obtained by contacting the Financial organizations or separate divisions thereof (i.e.gross income earned from federally Management Branch,Budget Review which receive the preponderance of their supported activities)see Attachment D of Division.Office of Management and support from awards made by Federal . OMB Circular A-11a - - Budget.Washington,D.C.20e3. agencies.In determining the reasonableness . 5.Advance and understand vie.Under any telephone(202)365-4P7& of a gives poet consideration shell be gives g/ven award the reasonableness and Weeps.1'. etyw,Jr, . Ice allocability of certain items of costa maybe Director. a.Whether the cwt le of a type Senera7 difficult to determine.This is particularly tree recognized as ordinary and necessary for the in connection with orgisations that receive a (Circular Na.?rte J operation of the organization er the . - preponderance of their support from Federal Attarhsaal A performance of the award. agencies.In eviler to avoid subsequent. • - b.The restraints or requirements imposed disallowance or dispute based as Gsoeral Friadpies by such factors as generally accepted sound unreasonableness or nonaDocabWty,R la • TobJ.of commis business practices.arms length bargaining. often desirable to seek a written agreement A Bank Considerations Federal and State laws and regulations,and with the cognizant or awarding agency tit . terms and conditions of the award advance of the Incurrence of special oe 1.Composition of ttiW costa c.Whether the individuals concerned acted causal costs.The absence alas advance 2.Factors affecting aliowabillty of costs with prudence in the dreumstaaees, agreement on any element of cost will=tin • 3.Reasonable cats considering their responsibilities to the itself.affect the reasonableness es 4.Allocable costs. organization,its members,employees.and allocability of that element - . —3— Federal RegI tar / Vol. U. No 132 / Ttuaday. July 4 1890 / Notica 11•025 o *b - ----"- . • —._ . - ._Una a4aaestaneaw has basaaaaiguildo . where an orgatt.utioo has oily ens major 1.Direct costs iro moss that canto" • as award ea a direct most. !unction esscompustag a number of wooed apsdscallyr with a particular Ptmai t$scanse of the diverse eharsetsrWio individual project'or activities.and may be coat objective:Le.a particular award. . and soeoumting practices o onnpreM cared where the load at Federal awards to an project.triune,or other and activity reap . agent:anon&it is not possible to specify the armies lion is relatively small. orpntzation.However,a cost may not be types of cost which may be classified as b.both the direct costs cad the Indirect assigned to an award as s direct coat if any Indirect cat in ell situation.However,typical costs shall exclude capital expenditures rod other coin incurred for the same purpose is examplbe of indirect cat for many nonprofit unallowable costs.However.unallowable tike thvi .tans.has been allocated to an ogaaizatiooa may ind4ude depnc i.tioa or costa which represent activities must be . award as an idlrect cost Cost Identified us.*allowances co building'and equipment' iochrd.d in the direct costs ands the specifically with awards are direct oat of the the poets of open tig and maintaining conditions described in paragraph art.above. swards and am to be assigned directly facilities,and geosrel administrstioo and c.The distribution base may be total direct dement Cat identified eped5cally with other general expenses.,such as the satirise and costs(excluding capital expendihues and final cost objectives of the organisation are expenses of executive oltcers.passesee! other distorting Items.such as major direct costs althorn cost objective*sad are administrstio4 and eceowntift. . suboontrects or subplots).direct salaries cot to be.alerted tp other awards directly or D.Allocation of/Ad—mot cost old and wage..or ether bare which remelts In an Determination of Indirect Gat!tosses equltabk distribution.The distribution bus Any act cat of a mini amount may ahaJ geasrally..rinds participant atport be treated u an indirect coat ofor reasons of e. DsweL posts as defined In paragraph ga of . pncticabty where the a000unttnrgg treatment a.Where a Nonprofit organleatioa lay cony Ariachment B. for such cost is cooalstsatly applied to all one major function.or where all its major d.Except where a special rete(s)is hnai cost functions benefit from its indirect cosh to 'squired in accordance with paragraph Di 3.The costdcer certain ectfvfties are not approximately the same dogma.the below,the Indirect coat rata developed ssdar allowable as charges to Federal awards tame. . ella"tioa of iadirgct oats and the the above principles is applicable to all ' tor maniple.toad raising owe to paragraph onmputation of an indirect coat rate may be swards at the organisation.tie special 21 of Attachment B).However.even though accomplished through simplified allocation totess)it required appropriate modibntions these coats are unallowable for ma yoses of urn*es descries in Paragraph g shall be made to order to develop the special computing charges to Federal awards.they below. .eate(s). aonethalesa most be treated as direct cost for b.Where an organl:atioo has several major d Multiple allocation bass method purposes of determining indirect cost totes functions which benefit from its indirect costs a.Where an aganizatioc's indirect costs and be allocated their share of the in varying degrees.aflocatloo of indirect benefit its major functions in varying degrees, organisation's indirect costs if they represent costs may require the acoumniatioo of such such costs shall be accumulated into seperste activities which(1)include the salaries of nets into separate cost groupings which then oat groupings.Each grouping shall than be perronneL(2)pommy spans.and(3)benefit are allocated individualy to beasfitieg allocated individually to benefiting functions from the arganizatioo'e Indirect costs functions by means of a base which best by means of a base which best measures the 4.The costs of activities performed measures the relative degree of benefit.The relative benefits. primariiy as a servfa I members,clients,or Indirect costs allocated to each function WI b.The groupings shall be established so as the general public when significant and then distributed to individual wards and to permit the allocation of each grouping on accessary to the oganisatioo's mission must otbir activities inducted to that dunctios hp the basis of benefits provided to the major be treated as direct oats when or mot - means of an indirect out tots(.). functions.Each grouping should constitute a • allowable and be allocated an equitable a The determination of what constitutes an pool of expenses that are of like character in share of indirect costs.Some examples of ortanlzation's major functions will depend oo terms of the functions they benefit and is these types of activities include. its purpose in being the types of services It terms of the allocation base which best a.Maintenance of membership rolls. ' senders to the public,its clients.and its measure the relative benefits providd to each subscriptions,publications,and related membere and the amount of effort It devotes function.The number of separate groupings functiose to such activities as fund raising,public should be held within practical Writs,taking b.Providing services and information to information and membership activities- Into consideretioo the materiality of the members.legislative or administrative d Specific methods for allocating indirect amounts involved and the demo*of precision bodies,or the public costs and computing Indirect asst rates along desired. e Promotion.lobbyIng,and other forms of with the conditions under which each method e.Actual conditions must be taken into public relations. should be used are described in paragraphs g account in selecting the base to be used in d Meetings and conferences except thole through I blow. allocating the expense*in each grouping to bald to conduct the general administration of e.The base period for the alocatlon of belief:u.i functions.When an allocation can the organization. indirect cats is the period in which such be made by as ignment of a cost grouping S Maiata acne,protection,and investment costs are Incurred and accumulated be directly to the function benefited the of special funds not used to operation of the allocation to work performed in that period. allocation shall be made in that manner. organization. ._ •-. The base period normally should coincide ' When the expenses in a grouping are more I.Administration of benefits on with the organization's fiscal yeat but in any general in nature,the allocation should be behalf of n>embn("clients including life mint.shall be so selected as to avoid made through the use of a selected bees and hospital insurance,annuity or retirement inequities in the allocation of the costa which produces results that are equitable to plans,Sandal aid.eta &Simplified emotion method. both the Government and the organisation.Is C a.When as organizations ajor functions general.any cost element or cost related benefit from its indirect costs to factor associated with the*mediation's 1.Indirect cats are those that have been approximately the game degre.the allocation work is potentially adaptable for use as an incurred for common or joint objectives and • of indirect costs may b accomplished by(I) allocation base provided(1)it can readily be cannot be readily.identified with a particular separating the organizations total cats for expressed in terms of dollars or other Mal cost objective.Direct cost of minor the base period as either direct or Indirect quantitative measures(total direct wets. amounts may be treated as Indirect costs and(ti)dividing the total allowable indirect direct salaries and wages.staff hours applied under the conditions described in paragraph costs(net of applicable credits)by an square feet used hours of usage.number of Si above.After direct costs have been equitable distribution bans.The result of this documents processed population served and determined and assigned directly to swards process Is an indirect cost rats which Is used the like)and(ii)it Is common to the or other week as appropri ate,Indirect costs to dire:byte indirect wets to individual benefiting functions during the base period are those remaining to be allocated to swards.The rate should be expressed as the d Except where a special indirect oust benefiting oat objectives.A cost may sot be percentage which the total amount of rates)is required in accordance with atlocard to an award as an Indirect cost if allowable indirect oats bears to the Sue paragraph D.S.below,the separate groupings any other out Incurred for the same purpose selected.This method should alas be iced of indirect costs allocated to each major • —4— • • • MI6 Federal R • Register egister / Vol. 45, No. 132 / Tuesday. July IL 1980./ Notices • ., function shall be segregated and tested u a used.or any combination thereof.When a is a major long-term shift in the dollar volume ' common pool for that function.The costs in particular segment of work is performed in an of the Federal awards to the organization.All the common pool shall then be distributed to environment which appears to generate a concerned Federal agencies shall be given the todividusl awads included in that function by• significantly different level of indirect costs. opportunity to participate in the negotiation see of a single indirect cost rate. provisions should be made for a separate- process.but after a rate has been agreed . a.The distribution based used in computing lndfrect cost pool applicable to such work. upon It will be accepted by all Federal the indirect cost rate for each function may The Ieparate indirect cost pool should be agencies.When a Federal agency has reason be total direct costs(excluding capital developed during the course of the regular to believe that special operating factors expenditures and other distorting items such allocation process,and the separate Indirect affecting its awards necessitate special - . as major subcontracts and subgranti),direct cost rate resulting therefrom should be used indirect cost rates in accordance with salaries and wages,or other base which provided it is determined that(I)the rate paragraph Di above,It will,prior to the time results in an equitable distribution.The differs significantly from that which would the rates are negotiated miry the cognizant distribution base shall generally exclude have been obtained under paragraph Di S, agency. participant support costs as defined in and 4 above,and(ti)the volume of work to b.A nonprofit organization which has sot paragraph 20.Attachment B.An indirect cod which the rate would apply Is material previously established an indirect cost rate rate should be developed fir each separate a N otiotian andApprvral ojlndirrct Coe! with a Federal agency shall after the indirect cost pool developed The rate in each organization is advised that an sward will be , case should be stated as the paresntye made and In no event.later than three which the amount of the particular indirect 1.Definitions.As sled in this section.the months after the effective date of the award. cost pool is of the distribution base Idsntlsed following teams have the meaalnp set forth c.Organizations that have previously with that pooL • below: established indirect cost rates must sus t a l Direct allocation method a."Cognizant agency means the Fedora .new indirect cost proposal to the coenizant a.Some nonprofit organizations,treat all agency responsible for negotiating and agency within six months after the close of costs as direct costs except general •approving Indirect cost rates for a nonprofit each fiscal year. administration and general expense&These organisation on behalf of all Federal d A predetermined rate may be negotiated organizatloas generally separate their costa agencies. for use on awards where there Is reasonable into three basic categories:(i)General b."Predetermined rate"means an Indieed assurance,based on past experience and sdminisbation and general expenses.(Ii) - cost rata,applicable to a specified current or reliable projection of the organization's costa. fund rattans.and(iii)other direct functions future period.usually the organization's fiscal that the rate is not likely to exceed a rate ,Jlncludiry projects performed under Federal year.The rate is based on an estimate of the based on the organization's actual costa. • . ':awards).joint costs,such as depreciation costs to be incurred during the period.A s.Fixed rates may be negotiated where :rental costs,operation and maintenance of predetermined rate is not subject to predetermined rates are not considered facilities telephone expenses,and the like adjustment appropriate.A fixed rata,however,shall not are prorated indivisuafly as direct cost to e."Fixed rate"means an indirect cost rate be negotiated if(I)all or a substantial portion each category and to each award or other which has the same characteristics as• of the organization's awards are expected to 'activity using a base most appropriate to the predetermined rata,except that the difference expire before the carry-forward adjustment. particular cost being prorated. .between the estimated costs and the actual can be made (ii)the mix of Government and lb.TM.method is acceptable provided each costs of the period covered by the rate Is non-government work at the organization is joint cost Is prorated using a base which carried forward as an adjustment to the as too erratic to permit an equitable carty- aoacstely measures the benefit.provided to computation of a subsequent period, forward adjustment or(iii)the organization's each award or other activity.The bases must • d."Final rate"means an indirect coat rate operations fluctuate significantly from year to be established In accordance with resonabla applicable to a specified past period which is ran and final rates shall be eaiteria,and be supported by current data. based on the actual costs of the period.A • This method is compatible with the . final rate is not subject to adjustment. negotiated where neither predetermined nos Standards of Accounting and Financial a."Provisional rate"or billing rate means a fixed rates are appropriate. Reporting for Voluntary Health and Welfare temporary indirect cost rate applicable to a S.The results of each negotiation shall be - -Organizations Issued jointly by the National specified period which is used for funding, formalized in a written agreement between Health Council,Inc.,the National Assembly Interim reimbursement,and reporting incised the cognizant agency and the nonprofit of Voluntary Health and Sociil Welfare . costs on awards pending the establishment of organization-The cognizant agency shall Organizations,and the United Way of a rate for the period distribute copies of the agreement to all America. f.Indirect coat proposal"means the concerned Federal agencies. • a.Under this method.Indirect costs consist documentation prepared by an organization to If a dispute arises in a negotiation of an elusively of general administration and to substantiate its claim for the indirect cost rate between the cognizant • general expenses.In all other respects.the reimbursement of indirect costs.This agency and the nonprofit organization,the organization's indirect cost ratess cabal he proposal provides the baste for the revlbw dispute shall be resolved In accordance with • computed in the same manner as that and negotiation leading to4n establishment the appeal*pros duree of the cognizant described in paragraph D.2 above. of an organization's indirect wet rate. a L Tube extent that problems are 1.Special indirect cost rates.In some g."Cost objective"means a function, instances.a single Indirect cost rate for all organizational subdivision,contract,grant,or encountered among the Federal agencies In activities of an organization or for each major other work unit for which cost data are connection with the negotiation and approval function of the organization ay not be desired and for which provision Is made to process.the Office of Management and appropriate,since it would not take into accumnlets and measure the cost of Budget will lend assistanoe as required to account those different factors which may processes,projects,jobs and capitalized resolve such problems In a timely mania • .- substantially affect the indirect costs projects. (Cirdular No./1-1221_. ... • • applicable to a particular segment of work. 2.Negotiation and approval o/rotnt Attachment• For this purpose,a particular segment at a.Unless different arrangements a» . work.For this purpose,a particular segment agreed to by the agencies concerned,the Selected Item of Coal • of work may be that performed under a single Federal agency with the largest dollar value - s award or it me consist of work ender a at awards with an organization will be Table of Cantons • ' • - grow of awards performed in a common designated as the cognizant agency for the 1.Advertising costs environment The factors may Include the ' negotiation sad approval of indirect cost 2.Bad debts physical location of the work,the level of rotes and,where necessary.other rates inch 2.Bid and proposal own(reserve4 administrative support required,the nature of as fringe benefit and computer cbargaocl 4.Bonding costs • the facilities or other resources employed,the »tee.Once as agency is assigned cognisance IL Communication.costa • • scientific disdplinis or technical skills for a pearl ler nonprofit organization,the a.Compensation for personal meter Involved,the organisational arrangements sesigareat will not be abanged salsa dime F.Contingency provtsioss • • —5— Federal Resbter / Val. 45,'No.. 132 7 7ltesdsy, !sly 8 2960 / IJodces 48027 . 1.Contributions In pans eph oO[rl the peaomement d=vods activities,compensation for a.plcyses ea I.Depredation and tare a0owams sad services;(Ili)the disposal d surplus Coverament epoosared week will be• 10.Donations - ' materials acquired Is the performance sidle • considered reasonable to the eztest that it is 11.Employee=orate.health and walf.rs • award except when organizations are comparable to that paid for similar work fe costa and credits reimbursed for disposals at a predetermined the tabor markets In which the organisation 12.Entertainment cost amount to socoedenoe with Attachment N of competes for the kind of employees involved. 13.Equipment and other capital eaipenditoros OMB Qrcada A-11R er(iv)apadfia d Special comiderotiorrs is determining ' 14.Fines and penalties' requirements of the award. atllowebility.Certain conditions 15.Fringe benefits 3.Rod debts.died debts.bdeding lasses special consideration and pouib a itations 1e..Idle facilities and idle capacity (whether actual er estimated)arising from in determining costs wider Federal awards 17.independent research and development' uncdlaetible accounts and other claims. where amounts or types of compensation (reserved) related oollsdtos coats,and related bold appear unreasonable.Among sock conditions 1$.Insurance and Indemnification • costs.are unallowable. are the following: 10.Interest fund raising end investment 3.Bid and propceolawls.(nasewdj - (1)Compensation to members of nonprofit management costs 4.Rending costs. organizations.trustees,directors,associates. 20.Labor relations coats a.Bonding costs arise when the officers,or the immediate families thereof. 21.Losses oe otherawarda Government requires assurance against Determination should be made that such 22.Maintenance and repair cost _ financial loss to itself*others by ressos of compensation Is reasonable for the actual . • 23.Materials and supplies the act or default of the organization.They personal services rendered rather than• 24.lyesti conferences arise also in instances where the organisation distribution of earnings in exams of oasts 25.Membin Memberships.subscriptions,and requires similar assurance.Included are such (2)Any change in an organization's professional activity costs bonds as bid performanoa payment compensation policy resulting In a 211.. Organization costs advance payment tnfringe�mest she fidelity substantial increase in the organisation's .37.Overtime.extra-pay shift and multlahift bonds. level of compensation.particularly when it premiums b.Costa of bonding required pursuant to Was concurrent with an increase in the ratio ?3.Pap charges is profeasional journals the terms of the award are allowable. of Government awards to other activities of Be..Participant support oats c.Costs of bonding required by the the organization or any change in the . 30.Patent cats organization in the general conduct of its treatment of allowabtlity of epedfrc types of Si.Pension plans operations are allowable to the extent that compensation due to changes in Government tti.Plant security s such bonding is to accordance with Pound policy. 33.Preaward costs ts business predioe and the rates and premiums e.Unallowable poets.Costa which are 34.Professional service costs are reasonable under the circumstances. unallowable under other paragraphs of this 3i Profits and tossbs on disposition of 1.Comrwuniaotion costs.Costa Weaned for Attachment shall not be allowable under this depreciable property or other capital telephone services local and long distance paragraph solely on the basis that they Wet telephone cells.telepems.radiograms► constitute personal compensation. ie.Public Information service costs postage and the like.are allowable. 1 hinge benefits. 37.Publication and printing costs l Compensation for persona lsorriest (1)Fringe benefits in the form of regular 36.Rearrangement and alteration costs a.Definition.Compensation for personal compensation paid to employees during 39.Reconversion ones services includes all compensation paid periods of authorized absences from the job. 40.Rem whet currently or accrued by the organisation for such as vacation leave,sick leave,military . 41.Relocation cost services of employees rendered during the leave.and the Lice;are allowable provided 42 Rental costs - period of the awilyd(except as otherwise such costs are absorbed by all organization 43.Royalties and other cost for me of provided in paragraph g.below).It includes, activities in roportion to the relative amount patents and copyrights but is not limited to,salaries.wages. of time or effort actually devoted to each. 44.Severance pay director's and executive committee members (2)Fringe benefits in the form of employer . 46.Specialised twos facilities fees.incentive swards.fringe benefits. contributions or expenses for social security. 40.Taxes pension plan costs.allowances for off-site employee insurance,workmen's 47.Termination costs • pay.incentive pay.location allowances. compensation Insurance,penaloo plan rat 4e..Training and education cost hardship pay.and cost of living differentials. (see paragraph g.below),and the like,are 49.Transportation cost b.Allowability.Except as otherwise allowable provided such benefits are granted W.Travel costs specifically provided in this paragraph the In socordence with established written • costs of such compensation are allowable to organization policies.Such benefits whether i Qradar No.A-424 the extent that treated as indirect coats or as direct costs. Attachmrd V ' - (1)Total compensation to individssl shall be distributed to particular awards and Selected/tams of Cost - employees Is reasonable forthe union other activities in a manner consistent with tendered and conforms to the established the pattern of benefits scorning to the Paragraphs 1 through 50 provide principles policy of the organization consistently individuals or group of employees what to be applied in establishing the ahlowability applied to both Governyent and now salaries and wages are chargeable to such • d cartatn items of coat.These principles Government activities;and awards and other activities. apply whether a cost is treated as direct or (2)Charges to awards whether heated es (3)(a)Provisions for a reserve under a self- indirect Failure to mention a particular item direct or indirect oats are determined and insurance program for unemployment at cwt is not Intended to Imply that it Is supported as required is this gar sire* compensation or workmen's compensation tsnallowablr,rather determination as to a.Reasonableness. am allowable to the extent that the allowability In each cane should be based on (1)When the organisation is predominantly provisions represent reasonable estimates of the treatment or principles provided for engaged in activities other than those the liabilities for such compensation.end the similar or related items oleo*. sponsored by the Government compensation types of coverage,extent of coverage.and 1.Advertising assts. for employees on Government sponsored rates and premiums would have been • a.Advertising cots mean the costs of work will be considered reasonable(o the allowable had insurance been purchased to media services and associated costa.Media extent that It is coexistent with that ppa�rid for cover the risks.However,provisions for self- advertising includes magazines.newspapers, similar work in the organiaatiea'a other insured liabilities which do not become . radio and television program&direct mails, activities. • payable for mom than one year after the ' exhibits.and the like. (2)When the organization is predominantly provision is made shall not exceed the b.The only advertising costs allowable are engaged in Government-sponsored activities present value of the liability. those which are solely for(i)the recruitment and in cases where the kind of employees (b)Where an orsanization follows• of personnel when considered in conjunction required for the Government activities are consistent pricy of expensing actual with all other recruitment costs,as set forth abt found in the organization's ether - . payments to or on behalf of.employees or -6- • 48026 Federal Register / Vol. 45, No. 132 / Tuesday, July 8, 1980 / Notices former employees for unemployment (2)Reports reflecting the distribution of on hand may be made through use compensation or workmen's compensation. activity of each employee must be allowances or depredation.However.axcept such payments are allowable in the yeas of maintained for all staff members as provided in paragraph I.below a payment with the prior approval of the (professionals and nonprofessionals)whose combination of the two methods may not be awarding agency provided they are allocated compensation is charged.in whole or in part. used in connection with a single class of to all activities of the organisation. dirictly to awards.In addition„in order to Axed asset.(a.s.,buildings,ofios equipment, '(4)Coats of insurance on the lives of support the allocation of indirect costa,such . computer equipment.etc.). trustees.officers.or other employees holding reports must also be maintained for other b.The computation of use allowances of positions of similar responsibility are employees whose work involves two or more depreciation shall be based on the allowable only to the extent that the functtons or activities ifs distribution of their acquisition cost of the assets involved The insurance represents additional compensation between such functions or acquisition cost of an asset donated to the compensation.The costa of such insurance activities is/needed in the determination of organization by a third party shall be its fats when the organisation is named as the organisation's indirect cost rate(s)(e.g., market value at the time of the donation. beneficiary are unallowable. an employee engaged part-time in indirect c.The computation of use allowances at g.Pension plan�v cost activities and part-time hi a direct depreciation will exclude. . (1)Costa o the organtzstlon's pension plan function).Reports maintained by nonprofit (1)The cost of land; which are incurred in accordance with the organisations to satisfy them requiremsob (2)Any portion of the cost of buildings and established policies of the organization are must meet the following standards equipment borne allowable, by or donated by the P�� (a)The reports mugt reflect an aferthe. Federal Government irrespective of where (a)Such polities meet the tat of foci determination of the actual activity of title was originally vested or where it reasonableness; each employee.Budget estimates(i.e, presently resides;and (b)The methods of cost allocation are not 'estimates determined before the services are (3)Any portion of the cost of buildings and discriminate, • performed)do not (c)The cost aiigned to each fiscal year Is qualify as support sac equipment contributed n satisfaction by at for statutory determined in accordance with generally charges to swards organization in a tfaction of a statutory accepted accounting principles g as p prescribed (b)Each must account for the total matching retirement to epteda Principles Board activity for which employees am d.Where the use allowance method is Amounting p Opinion No.S eompensetad and which I.required in followed,the use allowance for buildings and issued by the American Institute of Certified �aa�titaof then obligations to lbs _ improvement as including land improvements Public Accountants;and • (d)The costs assigned to a given fiscal year (c),may met parking preed,fences,and are funded for W plan participants within six es by the sidewalks)exceeding wed log computed at an salsa! mnnthsiafiei the end of that year.However. fadMdual employee,a by a m ha naihla nn.not exceeding two percent d aocptiaitloi tocrersee to Hama]and pact service passion kao�+ d Arse hand Dort.The use allowance for equipment will costs caused bye del. in ed8's pm/armed by sloe he computed at an annual rate not exceeding actuarial liability beyond 30 days after each smployea,that the distribution d activity six and two•thirda percent d ecgsiairioa cost, quarter of the year to which such Daft are - represents a nameable aethnate of the When the use allowance method is seed foe assignable are smallowabls actual week perfumed 17 the mployee buildings,the entire building mast be treated (2)Pena' ina plan termination insurance the periods covered by the repulse. as■single asset the building's amp premiums paid pursuant to the Employee (d)The reports must be prepared at least (e.g.plumbing system.bsrtisg and air tm Retirement Income Security Act of 1474(Pub. oathly and must coincide with one or more conditioning.etc.)cannot be segregated!rtes L 43-406)are allowable.Late payment . fxy Periods- the building's shell.The two perosit charges on such premiums are unallowable. (3)Charges.for the salaries and wages of limitation,however,need not be applied to (3)Excise taxes on accumulated funding nonprofeeaional employee%in addition to the equipment which is merely attached or deficiencies and other penalties imposed supportiag documentation descibed in fastened to the building but not y t)y under the Employee Retirement Income subparagraphs(1)and(2)above,must also Axed to it and which is used as!t shlngs ac Security Act are unallowable. be supported by records indicating the total decorations or for specialized purposes(e,g, h.&en ire awrpensotion.locentive number of hours worked each day dentist chairs and dental treatment unit% canonisation to employees based on cost maintained in conformance with Department counter%laboratory beaches bolted to the reduction,or efficient performance, of Labor regulations implementing the Fair floor,dishwashers,carpeting.etc).Such suggestion awards,safety awards,etc,are Labor Standards Act(24 CFR Part 316).For equipment will be considered as not being allowable to the extent that the overall this purpose,the term"nonprofessional • permanently fixed to the building if it can be compensation it determined to be reasonable amp ogee"shall hew the same weaning a removed without the need for costly or end ouch costa are paid or accrued pursuant • 'nonexempt employes"under the Fair Labatt extensive alterations a repairs lo the j to an agreement entered into in good faith Standards Act. . building or the equipment Equipment that . between the organization and the employees (4)Salaries and wages of employee,used meets these criteria will be subject to the six before the services were rendered,or In meeting cost sharing or matching and two-thirds percent equipment we pursuant to an established plan followed by t eq s��� u salaries tabbe e melee In allowance limitation. . the organization so consistently as to imply. ales s.Where depredation method is followed, in effect an agreement to make suck claimed for reimbursement from awarding the period of useful service(useful life) payment geodes. • • established in each case for usable capita i.Overtime.extra pay skit and multbAif! 7.Contingency provisions.Contributions to asset,must take into consideration such premiums.See paragraph 27. a contingency reserve or any similar factors as type of construction.nature of the • I.Severance poy.See paragraph K • provision made for events the occuaeona at equipment used technological developments Thainigg and education ousts.See which cannot be foretold with certainty as to in the particular am area.and the paragraph 4t, • time.intensity,or with an eewraeoe of their renewal and replacement policies followed 1 Support of ealnriet and wo s& happening,are unallowable.The term • for the the individual items or classes of - (1)Otargee to awards for salaries and "contingency reserve"excludes self- asset.involved The method of depredation wages,whether treated as direct costs or insurance reserves(see paragraph LL(3)and used to assign the coat of an asset(or group Indirect cosh,will be based oo documented 11a.(2Xd)k pension funds(see paragraph of assets)to accounting periods shall reflect payrolls approved by a responsible officials) a.(g}};and reserves foe normal severance pay the pattern of consumption of the asset of the organization.The distribution of (sae paragraph 44dbX1. during its useful life.In the absence tithe salaries and wages to awards must be L Contributions.Contributions and ' evidence indicating that the expected supported by personnel activity reports as donations by the organization to others we consumption of the asset will be significant/7 prescribed in subparagraph(2)below,except unallowable. greater or lesser in the early portions of its when a substitute system has been approved ' L Depreciation wad use allowances, useful life than in the late portions.the In writing by the the cognisant agency.(See a.Compensation Sc'the use of buildings, straight-line method shall be presumed to be paragraph E.2 of Attachment A) other W v ementa,and equipment the appropriate method.Depredation —7—' . • - -. __-._ • ?adorn! Rester / Vol. 4S, Na 132 J:Tteeday, July 4 too / Notices 46029 'methods oboe used shall not be classed =Inhumed under the sward er said to Mist (1)"Equipment"means an article of unless approved in advances by the cognisant moat sharing or matching requirement& bonexpendabte tangible personal property Federal seamy.When the depredation (1)The value of the donated services may having a useful life of more than two years method Is introduced for application to assets be used to meet cost abating or matching and an acquisition cost of 0501)or more per previously subject to a use allowance.the requirements under conditions desalbsd is snit An organization may use its own combination of ere allowances and • Attachment L OMB Circular Na A-110. definition ppr vided that it at lust includes all depredation applicable to such saute mast Where donated services are bested v oonexpendible tangible personal property as Dot exceed the total acquisition cost of the indirect costs,indirect cost rotas will defined herein. assets.When the depredation method is used separate the value of the donations as that (2)"Acquisition most"means the net • for bulldinp,s buildings shell may be reimbursement will not be made. Invoice unit price of an item of equipment segregated from each building o ft (0)Fair market value of donated swims .. including the cost of any modifications, (e.a.,plumbing system beating. air. - shall be computed as follows: attachments,accessories,or auxiliary conditioning system eta)and each item (a)Rotas for rolrrn4sr services.Batas ferr apparatus Debussy to mats It usable for the depredated over Its estimated useful fits,;a volunteers shall be consistent with those purpose for which it Is acquired Ancillary the entire building M.the shell and all regular rates paid for similar work to other charges,such as taxes,duty.protective in- components]may be treated as a single asset activities of the organisation.in canes where transit insurance,freight and installation and de tad over a single useful fib. the kinds of skilb involved are sot found in shall be included in or excluded from L When dm depreciation method is used the other activities of the or lan:ados.the aoqulsttion cost in accordance with the fors particular class of assets,ao rates used shall be consistent with those paid organlratios's regular written accounting depredation maybe allowed on any nth for similar work in the labor market in which practices. assets that under paragraph a.above,would the organir:atiozycampetes for ouch ddlb. (3)"Special purpose equipment"means be viewed as fully depredated However.a _ (b)Services donated by other aqutpment which is usable only for research. may negotiated oagwnisotions.When an employer donates medical edenti&c.or technical reasonable use allowance tea be activities• for such assets if warranted after taking into the services of an employee,these services Examples of apedal purpose equipment considered=the amount of depredation ' shall be valued at the employee's regular rate dude mieoscopes.x-ray machines,surgical previously charged to the Government.the of clay(exclusive of fringe benefits and instruments,and spectrometers. estimated useful life remaining at time of • indirect costs)provided the services are la (4)"General purpose equip menu"means aegot ation,the effect of any inward the same skill for which the employes is equipment which is usable for other than maintenance charges or deceased efddesey normally paid.If the services are not in the reiearch,medical scerrtific,or technical due to age.and arAt other factors pertinent to same skill for which the employee is born* activities.whether or not tpsdal the utilised=of the asset for the purpose paid,fair market value shall be c�mpvtad fa tmodifimtioas are needed to maks teem erg eph(a)above, suitable for a particular purpoes.Examples of contemplated. accordance with subpa g;Charges for use allowances or b.Goods and spore. purpose equipment air conditioning office depredation must bs supported by adequate . (1)Donated goods;Ls.,expendable equipment and furnishInp,sir intditioning . property records and physical inventories personal property/supplies,and donated mss squipmaat reproduction and printing mast be taken at least once every two years of space may be furnished to an organisation. data„newt,ntmotor uippment.and automatic (a statistical sampling bats is acceptable)to The value of the goods and space is not b.(1)Capi expenditures for tea) ensure that assets exist and are usable sad reimbursable either as a direct or indirect purpose equipment are unallowa la u a seeded When the depredation method is scat followed,adequate depredation records (2)The value of the donations may be used direct curet except with the prior approval of indicating the amount of depredation taken to meet cost sharing or matching sham the awarding agency. each period must also be maintained. requirements under the conditions desaibed (2)C;apitafexpend Lures for special purpose equt 10.Donations to Attachment E.OMB Circular Na A-110. pment are allowable as direct costs i Seirices rxmirsd The value of the donations shall be provided that name with a ov oat a gitt00 (1)Donated or volunteer esMoes maybe determined in accordance with Attachment or have the prior approval of the furnished to an organization by professional E.Where donations are treated as indirect awarding Chip is sxpeadktunea for land or and technical personnel,consultants,and costa.Indirect cost fetes will separate the building,are unallowable as a died wet other skilled and unskilled labor.The value value of the donations eo that reimbursement except with the prior approval of the of these services is not reimbursable either as will not be made. a direct or indirect cost !I.Employee morals.health,and swilbra awarding, once. (2)The value of donated.services utilized oats and credits.The costs of house p or equipment t which cab to land buildings,or equipmsat which In the performance of s direct cost activity publications,health or first-aid clinks,and/ materially increase their value or useful lib shall be considered In the determination of or infirmaries,recreational activities. are unallowable as a direct cost except with the organisation's Indirect cost retell)and, employees'counseling service&and other the prior approval of the awarding agency. accordingly.shall be allocated a expenses Incurred in accordance with the e.Equipment and other capital proportionate share of applicable indirect organisation's established practice or custom expenditures are unallowable as indirect costs when the following circumstances exist for the improvement of working conditions. costa.However,see ph iI for m(a))The: aggregate talus of the services is employer-employee ts performance airs allowabWty of use allowances or (b)The services are supported employes pe depreciation on buildings.capital pported by a allowable.Such costs will be equitably • improvements,and equipment Also,see significant amount of the indirect costs apportioned to all activities of the paragraph 42 for allowability of rental costs intvnvd by the organization: organization-Income generated from any at for land,buildings,and equipment. (c)The direct coot activity is not pursued these activities will be credited to the cost It Fynei and penalties.Cons of fines and primarily for the benefit of the Federal thereof unless such income has been penalties resulting from violations of,or Goverment. irrevocably set over to employee welfare failure of the organization to comply with (3)in those instances where there is no organizations. • Federal,State,and local laws and regulations buts for determining the fair market value of 12.Entertainment cosh.Costs of are unallowable except when incurred:s e the seMcee rendered,the recipient and the amusement.diversion.social activities,• . result of compliance with'wale provisions cognizant agency shall negotiate an ceremonials,and costs relating thereto.such of as award or instructions in writing from appropriate allocation of indirect cost to the as meals,lodging.rentals.transportation,and the awarding gamy. - services. gratuities are unallowable(but see 14 Prinpe benefits.See paragraph it L (4)Where donated services directly benefit paragraphs II and 25). it Idle focilitr'es and idle capacity. a project supported by an sward the Indirect 13.Equipment and other capita) a.As used in this paragraph the following costs allocated to the services will be ' expenditures. -terms have the meanings set forth below: considered as a part of the total costs of the a.As used in this paragraph.the following (13'Facilities"means land and buildings or project.Such Indirect costa may be terms have the meanings set forth below: any portion thereof,equipment individually - -8- • • 48030 Federal Resister / Vol. 45, No. 132 / Tuesday, July 8 1080 / Notices • or cathode*.or any other tanble=pilaf ' (a)Typee and extent of°oversee shall be 21.Loom an other awards.Any atone of 'asset wherever located and whether owned in pccordance with sound business Indio ' costs over income on any award is or leased by the organisation. and the rates and premiums shall be unallowable as a cost of any other award (2)Idle facilities'means completely reasonable under the°ireumatanoss. This includes,but is not limited to.the unused facilities that are asap to the • (b)Costs allowed for business interruption organisation's 000trtbuted portico by reason organttatices current needs. or other similar insurance shall be limited to of cost sharing agreements or any (3)Idle apaci means the unused exclude coverage of management fees. snderrecoveriee through negotiation of lump • capacity of partially used facilities.It is the (c)Costs of insurance or of any provisions sums for.or ceiling,on.Indirect oats. difference between that which a facility for a reserve covering the risk of loss or 22.Maintenance and repair oasts.Costa could achieve ander 103 pm cent operating damage to Government property are incurred for necessary maintenance,repair. time on•one-shift basis lass operating allowable only to the extent that the or upkeep of buildings and equipment interruptions resulting from time lost for organization is liable for such loss or damage. (including Government property unless repairs.setups,unsatisfactory materials.and (d)provisions fora reserve under a self- otherwise provided for)which neither add to other normal delays,and the extent to which insurance program are allowable to the the permanent value of the property nor the facility was actually used to meet extent that types of coverage,extent of appreciably prolong its intended life,but demands during the accounting period.A coverage,rates,and premiums would have keep it in an efficient operating condition.are multuhift basis may be used int can be been allowed red traumas been purchased allowable.Costs incurred for improvements . shown that this amount of usage could to cover the risks.ktowever,provision for which add to the permanent value of the 'normally be expected for the type of facility known or reasonably estimated self-insured buildings and equipment or appreciably Involved liabilities,which do not become payable for prolong their intended life shall be Crested as (4)"Coats of Ida facilities at idle apsdtf more than one year after the provision is capital expenditures(see paragraph 13). means costs such as maintenance,repair. made shall not exceed the present value of • 23.Materials and supplies.The costs of housing,rent.and other related costa;eg.. the liability. materials and supplies necessary to carry out property taxes,insurance.and depredation (a)Costs of insurance on the lives of an award are allowable.Such costs should be or use allowances trustees,officers.or other employees bolding charged at their actual prices after deducting b.The cats of idle fa litim ate positions of similar responsibilities are all cash discounts,trade discounts.rebates, .unallowable except to the=teat that allowable only to the extent that the and allowances received by the organization. (1)They are necessary to meet insurance represents add itionel Withdrawals from general stores or !Iodisation'in workload oe compensation(see paragraph e) The oat of stocicroom,should be charged at cost order (2)Although not necessary to meet . such Insurance when the organisation is any recognized method of pricing fluctuations to workload they were identified as the beneficiary is unallowable. consistently applied.Incoming transported= me esaaey when acquired and are now idle (3)Actual losses which could have been charges may be a proper part of material because of changes in program requirements. covered by permissible insurance(through cost.Materials and supplies charged as a efforts to achieve more economical the purchase of insurance or a self-insurance direct cost should include only the materials operations.reorgaalzatioa,termination,or program)are unallowable unless expressly and supplies actually used for the other cause,which could not have been provided for in the award,except performance of the contract or grant and dee reasonably foreseen.Under the exception (a)Coats incurred because of losses not credit should be given for any exams stated in this subparagraph,costs of ids covered under nominal deductible Ineareaos materials or supplies retained or returned to facilities are allowable for a reasonable - coverage provided in keeping with round vendors. - period of time,ordinarily not to exceed ow business practice are allowable. at Meetings.conference& year.depending upon the initiative taken to (b)Minor losses not covered by Insurance, a.Costs associated with the conduct of sea.lease,or dispose of each facilities(but such as spoilage,breakage,and meetings,and conferences;and include the see paragraphs v.b.and d). disappearance of supplies,which occur In the cost of renting facilities,meals,speaker.' a The costs of idle apedty are normal• ordinary course of operations,are allowable. fees,and the like.But see paragraph 12. . costs of doing business and are a factor lax the b.Indemnification includes the Entertainment data,and paragraph A normal fluctuations of usage or indirect oast organization against liabilities Participant support poets. rates from period to period Sock costa are persons and any other lop or damage.not b.To the extent that these oasts are allowable,provided the capacity is compensated by insurance or otherwise.The Identifiible with a particular cost objective. reasonably anticipated to be necessary et Government is obligated to indemnify the they should be charged to that objective.(See was originally reasonable and is not subject organization only to the extent expressly paragraph ht of Attachment A.)These costs M reduction at elimination by snbletdeg, provided in the award are allowable provided that they meet the . renting•or sale,in ecoordana with road 111.Interest,fund raisins,anndinveetannt general tests of allowable,shows in bumbler's,economics,or eeceutty practice& oranagemant we Attachment A to this Circular. Widespread idle capacity throughout ea. a.Cow Insured for lateral on borrowed • c.Costs of meetings and conferences held - entire facility or among a group of assets• capital or temporary use of=downed 'to conduct the general administration tithe having substantially the same/auction say funds,however represented,are unallowable. organization are allowable. be idle facilities. b.Cats of organized fund raising, 23.Memberships.subscriptions.and 17.independent aeswe b andevelapmast including financial campaigns,endowes I professional activity cost& (Reserved), drives.solicitation of yfts and bequests,and a.Cats of the organization's membership 11i,Insurance anndindamaffloettatt .-. similar expenses incurred solely to tale in civic,business,technical and professional a.Insurance includes haws=which she- • capita/or obtain c ntributdone rte_ • ' organizations are allowable. organization is required to carry,or which is - unallowable. - b.Costs of the organization's subsaiptfoas approved.under the terms of the award serf' - a Cosh of tnveetnent counsel and eta,• " to civic,business.professional,and technfal any other Insurance which the organization and similar ixpenyes incurred solely to periodicals are allowable. . maintains in connection with the posed • • enhance Income from investments are - a Costs of attendance at meetings and conduct of its operations.This paragraph unallowable. conferences,sponsored by others when the does not apply to Inwrenoe which represents d.Fund raising and investment ectivttlee primary purpose is the dissemination of fringe benefits for employees(see paragraph- shall be atloceted an appropriate share of • technical information.are allowable.This Si.and dg.(2)). indirect costs under the conditions described includes costs of meals.transportation,and (1)Costs of insurance requbed or •in paragraph li of Attachment A. other items incidental to such attendance. • . approved and maintained purses*Is ie. : Al Labor relations costs.Costs incurred in 2s..Organisation oats.Expenditures.such award are allowable. maintaining satisfactory relations between as Incorporation fees,brokers'fees,fees to (Z)Costs of offset hnsuretoe mdntttned by' the organization and its employees,including promoters.organizers or management :the organisation is coanectioa with the costs of labor management committees. . - • consultants,attorneys,a wiwt5 rts.or general conduct of its operations are employee publications,and other related investment counselors,whether or not allowable subject to the followttg!tataer& • activities are allowable. employees of the organization in connection —9— Federal Register I VoL 45, No.'132 1"Tuesday,-qty•S, 4980 /•• b:dices 48031 with establishment or thin ciao 33.Preaward costs.Presward eats its is which the depredation applicable to sash oreaaaation,are unallowa a except with •those incurred prior to the effective dew ii property was included.The amount of the prior approval of the awarding agency, ithe award directly pursuant to the gain or loss to be included as a credit or V.Orertime.axtro-pay shift.and • negotiation and in anticipation of the award charge to the appropriate cost groupings) muitishift premiums.Premiums for overtime. where such costs is necessary to comply with shall be the difference between the emonnt extra-pay shifts.and multiahift work are the proposed delivery schedule or period of realia.d on the property and the. • . allowable only with the prior approval of the performance.Such costs are allowable only =depredated basis of the awarding agency except to the extent that they would have boss (2)Gains and losses on a tioe of a.When necessary to cope with allowable if incurred after the date of the depreciable property shall not be recognized emergencies,such as those resulting from award and only with the written approval of as a separate credit or charge render the accidents.Datum!disasters,breakdowns of the awarding agency. following conditions. .. equipment or occasional operational • 34.Professional arch crane (a)The gain or lea is precasted through a . bottlenecks of a sporadic nature. a.Costs of professional and consultant depreciation reserve account and is reflected b.When employees an performing indirect services rendered by persons who are in the depredation allowable under functions such as administration. members of a particular profession or possess paragraph IL • . maintenance,or accounting. a special skill and who are not officers or (b)The property Is given in exchange as • a.in the performance of tests,laboratory employees of the organization,are allowable, part of the purchase price of a similar item procedures,or other eitailar operations which subject to b,c.and d,of this paragraph when and the gain or loss is taken into account in are continuous in nature and cannot reasonable in relation to.the services determining i the depreciation coat basis of the reesonat!y be tnismrrted or otherwise rendered and when not contingent upon ttompleted . recovery of the costs from the Government. (c)A loss ranks from the failure to d.When lower overall oat to the b.In determing the allowebility of costs is maintain permissible insurance,except as Government will result. a particular case,no single factor or any otherwise provided in paragraph te.e.(g} 21 page charges in professional journals. special combination of factors is necessarily (d)Compensation for the use of the Page charges for professional journal determinative.However,the following property was provided through ue publications are allowable as a n•cesiay factors are relevant allowance§in lien of depreciation is part of research costs.where: (1)The nature and scope of the service accordance with paragraph S. a.The research papers report week rendered in relation to the service required. (e)Gains and losses arising from mass or supported by the Government and (2)The necessity of contracting for the extraordinary sales,retirements,or other b.The charges are levied impartially oo all service,considering the organization's by-case dispositions shall be considered on•caro- b. -research papers published by the journal. capability in the particular area. bycase basis' whether or not by Government-sponsored (3)The past pattern of such costs. b.Gains saor le losses of any nature rty oth authors. particularly in the years prior to Government them the pals or exchange vexed of property o 29.Participant support costs.Participant awards. than the proppeerty Covered in paragraph putins a.above support cats are direct costs for items such (4)The impact of Government awards on shall be excluded in computing award as stipends or subsistence allowances,travel the organization's business(La,what new 36,Public information service oats. allowances,and registration fees paid to or problems have'Nu m). a.Public information service costs include on behalf of participants or trainees(but not • (6)Whether the proportion of Government the omit associated with pamphlets,mews employees)in connection with meetings, work to the organization's total business Is releases,and other forms of information conferences.symposia.or training projects. such as to influence the organization in favor services.Such costs are normally incurred to: • These costs are allowable with the prior of incurring the cost,particularly where the (1)inform or instruct individuals.groups,or approval of the awarding'agency. services rendered are not of a continuing the general public. 30.Potenf:oats nature and have little relationship to work (2)Interest individuals or groups in a.Costs of(I)preparing di/cleans. under Government grants and contracts. partidpatingtn a service program of the reports,and ether documents required by the (a)Whether the service can be performed nmatiom award and of searching the art to the extend more economically by direct employment ()Disseminate the malts of sponsored necessary to make such disclosures,(ii) rather than codtrac ting. and nonsponsored activities preparing documents and any other patent (7)The qualifications of the individual ere b.Public information service costs ate costs in connection with the filing and concern rendcriaii the service and tie allowable as direct costs with the prior prosecution of a United states patent customary fees charged,especially on nos approval of the awarding agency.Such costs application where title or royalty-free license Government awards are unallowable as indirect costs is required by the Government to be (6)Adequacy of the contractual agreement F.publication and printing herb. conveyed to the Government,and(iii)general for the service(e.g.,description of the service. a.Publication costs include the costs of counseling services relating to patent and estimate of time required,rats of • printing(including the processes of - copyright matters,such as advice on patent compensation.and termination provisions). composition,plate•m•ktng press work and copyright laws.regulations,clauses,and a.In addition to the factor,in paragraph b binding.and the end products produced by employee agreements are allowable(but see above,retainer fees to the allowable must be such processes),distribution,promotion, paragraph 34). - _ -.- supported by evidence of bdna fide•eMoue maims.and general handling. b.Cost of preparing disclosures.reports.' available or rendered b.lfthese costs art not identifiable with a and other documents and of searching the ail d.Cost of legal.accounting.and consulting- particular cost objective,they should be to the extent necessary to make disclosures, services,and related cats incurred to allocated as indirect costs to all benefiting If not required by the award.are connection with defense of antitrust suits. activities of the organization. unallowable.Costs in connection with(i) and the prosecution of claims against the a.Publication and printing costs are filing and prosecuting any foreign patent Government,are unallowable.Costs of legal. unallowable as direct costs except with the application.or(ii)any United States patent accounting and consulting services and prior approval of the awarding agency. application,where the award does not related costs,insured in Connection with d The cost of page charges in journals is require conveying title or a royalty-free patent infringement litigation,organization addressed paragraph 2& license to the Government.are unallowable' and reorganization,are unallowable unless 34.Reorrwtgement and ahem ion oasts (also see paragraph 43). otherwise provided for in the award(but see Costs incurred for ordinary or normal $1.Pension plans.See paragraph l g. paragraph 474 . rearrangement and alteration of facilities are • 32.Plant security costs.Necessary 36.Profits and losses on disparities of allowable.Special arrangement and expenses incurred to comply with depreciable property or other capital peseta. alteration costs incurred specifically for the Government security requirements order a.(1)Gains and losses on sale.retirement. project are allowable with the prior approval facilities protection.including wages, or other disposition of depreciable property of the awarding agency. uniforms.and equipment of personnel are shall be included in the year in which they 39.Reconversion costs.Costs Incurred In allowable occur as credits or charges to cost grouping(s) the restoration or rehabilitation of the • —10— • + ii- .. • • 46033 • Federal Register / Vol. 45, No. 192 / Tuesday, July 8. 1980 / Notices organisation's fadlitles to appnrszdmately the control within 12 months after hire,the if any)is equal to 75 per cent or more of the same condition existing immediately prior to organisation shall rotund or credit the economic life of the Lased p Le.the commencement of Government awards,fair Government for its share of the cost. period the property is expected to be wear and teat excepted are allowable. Howsvp,the costa of travel to an overseas economically usable by one or more aura. 40.Recruiting posts.The following locatlotl shall be considered travel costs is 43.Royalties and other costs for on of recruiting costs are allowable cost of"belp accordance with paragraph 50 and net potent,.and copyrights. wanted"advertisteg,operating costs elan relocation costs for the purpose of this a.Royalties on a patent or copyright or employment office.costs of operating an paragraph if dependents an not permitted at amortisation of the cost of acquiring by educational testing program.travel expanses the location for any reason and the costs do purchase a copyright.patent.or rights including food and lodging of employees not include costs of transporting household thereto.necessary for the proper performance while engaged is recruiting personnel,bevel goods. • of the award are allowable unless: cats of applicants for lntarviews for d.The following costs related to relocatlost MTh.Government has a license or the prospective employment,and relocation cores an unallowable: tight to free use of the patent or copyright. incurred incident to recruitment doer (1)Fees and other costa undated with • (2)The patent or copyright has been employees(see paragraph 41c).Whore the acquiring a new home., adjudicated to be invalid,of has been organization>nses employment agendas. (2)A lose m the sale of•forma hosts. administratively determined to be invalid costs not hi excess of standard commercial (3)Continuing mortgage prindpal and: (3)The patent or copyright is considered to rates for such services are allowabl& interest payments on a home being told be unenforceable. 41.Relocation costa (4)income taxespaid by an employee (4)The patent or copyright Is expired a.Relocation costs are costs incident to the related to reimbursed NJocatics costs. b.Special care should be exercised to permanent chanp of duty assignment(far as 42.Rentd coat determining reasonableness where the Indefinite period or for a stated period d not a.Subject to the limitations described to royalties may have been arrived at as s result less than 12 months)of an existing employee Paragraphs b.through d of this ParagraPlk of lets then arm's length bargaining e.f or upon recruitment of a new employee. rental costs are allowable to the extent that (1)Royalties paid to persons,including Relocation costs an allowable,subject to the the rates are reasonable in light of each corporations,affiliated with the orgaaizaticn. limitation described in paragraphs b,a and d factors as rental costs of comparable (2)Royalties paid to unaffiliated below,provided than property.daily:market conditions in the inclu corporations, Pafine (1)The move L to th.baneDt of the area.alternatives available;and the type,>db rporontem under an agreement expectancy.condition,and value of the entered into is contemplation and would l d be that• employer. rty k Government award would be made. (2)Reimbursement to the employee Is to b,Rental costs under sale and hasebadt (3)Royalties paid under an agreement accordance vgith an established written arrangements are allowable only op to the entered into after an award Is muds to an policy consistently followed by the employer. amount that would be allowed had the organizatloa. (3)The reimbursement does not exceed the organisation continued to own the propert s.sa any cue involving a patent* .' employee's actual(ot reasonably estimated) e.Rental costs under leu•than4eugth y� copyright formerly owned by the expenses. leases are allowable only up to the amen! organization,the amount of royalty allowed b.Allowable relocation costs for must that would be allowed had tide to the should not exceed the cost which would have employees us limited to the following. property,vested in the organization.For ibis been allowed had the organization retained (1)Tbs costs of transportation of the pose,a less—than—arms—length lease is one tide thereto. employes,members of his immediate faintly under which on.party to the lease agreement M.Severance PTA and his household,and personal effects to the 1.able to control or substantially influence a.Severaglce pay,also commonly referred new Iocatim. the actions of the other.Such leases include, to as dismissal wages is a payment in (2)The costs of finding a new home such but are not limited to those between(I) addition to regular salaries and ways,by as advance Dips by employees and spouses division.of an argaaisstlo,(ti)organitadoas organizations to workers whose employment to locate living quarters and temporary under common control through common is being terminated.Costs of severance pay lodging during the transition period up to a officers,directors,of mambas;and(W)as an allowable only to the extent that to each maximum period of 30 days,including organization and a director.trustee,oihat: au,it is required by(i)law,(ti)employer` advance trip time. or key em to ee of the organization ee hie employee N cure ement,(W)established policy (3) ous such as brokerage,legal, immediate amiy sithe directly through that constitutes.in effect,an emptied and appraisal fees,incident to the dispositlos corporations,fuse.,or similar is agreement on the organization's part or(iv) of the employee's former home.These costs, in which they bold a controliing interred, • circumstances of the particular amployrnanL together with those described in(4)below. d Rental costs under leases which meats a b.Costs of severance payments are divided • are limited to s per cent of the sales priced material equity in the leased property are into two categories as follows: the employee's former horns. allowable only up to the amount that would (1)Actual normal trnnover severance (4)The continuing costa otowmarabip or be allowed had the organization purchased payments shall be allocated to all activities • ' the vacant former home after the settlement the property on the data the lase agreement or.where the organization provides for• or lease data of the employee's sew wu executed e.g.,depredation of area reserve far normal severances such method permanent bome,such as maintenance if allowances.maintenance,taxes,insurance will be acceptable if the charge to currant buildings and pounds(exclusive of fixing a0 but excluding interest expense and ether • operations L reasonable in light of payments expenses),utilities,taxes,and properly unallowable costs.For this purpose,• actually made for normal severances over a insurance. material equity in the property exists U the representative past period,and U amounts (5)Other necessary and reasoaabl • lease in noncanoelable or is cancelable only charged am allocated to all activities of the expenses normally incident to rulocnileah upon tits ooasrr:nos of some remote organisatlm such es the costs of cancelling an unexpired contingency and has ogle at mote of the . .. (2)Abnormal or mass severance pay is of lease.disconnecting and reinstalling • following characteristics: • such a conjectural nature that measurement household appliances,and purchasing (1)The organization has td right to of costs by means of an accrual will not insurance against low of or damages to urchase the property fora price which at the achieve equity to both parties.Thus,accruals personal property.The wet of cancelling ea beginning of the lease appears b be for this purpose are not allowable.However unexpired lease is limited to three times the substantially less than the probable fait the Government recognizes its ob''gatlm to monthly rental, market value at the time It Is permitted 1s participate to the extent of its fair share is e Allowable relocation octets he now purchase the property(commonly called a any specific payment Thus,allowabtty will employees are limited to those described to lease with a hatpin purchase option): . be considered on vase-byeau basis in the (1)and(2)of paragraph b.above.When (2)Title to the property pasty to the event of ooazrreaoa, relocation costs incurred incident to the organization at some time during or after the 45.Specialised service Jocilidaa recruitment of new employees have been lease period; a.The costa of services provided by highly allowed either as a direct or indirect cost aid' (3)The term of the tease(initial term plea complex or specialized facilities operated by the employee users for reasons within his' periods covered by bargain renewal options. the organization.such as electronic —11— • Federal Rogitder /Vol. 45, No. 132 / 'Newby, fah 8, lien / Notices 48033. computes and wtod timbale an allowable "le Cori aoseibudng provided the charges for the services neat • ° hrrrsontihi igl0a with the basic The tiaee rte•te uprose co - , partieuly case,despite aII reasonable Attachment A.The indirect arepepse w the conditions of either b.or e.d the annuli by the �a�4 certain scab allocated shall exclude the same and eau paragraph and.in addrtioo.take Into arose cannot be discontinued immediatajy after tb costs claimed directly or inelheetly u any items of income or Federal financing that • elective date of termination.eec'h cons en settlement expanses. qualify es L credit ander preempt generally allowable within the limitations sat 41.7luining and education oasts. Al Jmea .of AtNtA. pe forth in this Menlo.except that Bay each a.Cost of preparation and maintenance of b.The cost ditch servtca.who costs continuing atter termination due to the a program of instruction Inruding boa rat material,must be charged directly tie sgligent or w ful failure of the organisation limited to ao-the-job,classroom.and applicable awards based on actual neap at. _ to disoonlinue such costs shall be apprenticeship training,designed to Wrung the services on the baste of a schedule of. unallowabia the vocational effectiveness of employees. rates or sitablishsd methodology that 11)dose a.ice of canal solve.Lose of ssefa�d cabs including training materials,textbooks, not discriminate against federally supported • of special tooling,machinery and equipment " salaries or wages of trainees(excluding activities of the agent:atiai%including asap ' which was not ebarged to the award u_ • overtime compensation which might arise by the organisation for internal purposes,and capital extenditure is general, yai cue** therefrom),end(1)solarise of the director of (ii)is designed to recover only the sggrepte • (1)Such pedal tooling,m chi ,or tniainQ and staff when the training program cost of the swim.The costs of each . isqulpment L pot treasonably capable dam% Loon cted by the organization;or(ii) service shall consist normally of both its 7 the other work of the ogaafsntloa - • tuition sad fear whoa the training Is in an direct costs sod Is allocable share dal) (2)The interest of the Government is bstitutioe not operated by the organisation. indirect costs.Advance agreements pursuant protected by transfer of title or by other are allowable. to paragraph A.S.of Attachment A are • means deemed appropriate by the awarding b.Costs of part-time education.at an particularly important In this situation. a$soc, wade:graduate or postgraduate college level. e.When the costs incurred for a service • d.Rental poets.Ranted oasts ender including that provided at the organization's are not material,they may be allocated as unexpired leases de generefy allowable . own facilities,are allowable only when the indirect 7t coat • where cclearly seo our been course or degree pursued is relative to the y necessary performance of field in which the employee Is now working a.In general taxes which the organisation the terminated award lees the residual value or may reasonably be expected to work and is required to pay and which are paid or . of such leases,if(f)the amount of mob rental are limited to abcrued in accordance with generally claimed does sot exceed the reasonable use (1)Training materials. accepted accounting principle,and value of the property leased for the period of (2)Textbooks. payments made to local government in Ilse the sward sod such further period as may be (f)Fees charges by the eduotlenal of taxes which are commensurate with the seasonable.and(U)thi organization make. institution. local governfoent services received are all restorable efforts to terminate,assign. (6)Tuition charged by the educational allowable,except for(i)taxes from which, settle,or otherwise reduce the cost of such institution,or In lieu of tuition.instructors' exemptions are available to the organization lease.There also may be Included the coat of ea/Ivies and the related share of indirect directly or which are available to the alterations clinch leased property,provided costs of the educational institution to the organization based on an exemption afforded such alterations were necessary for the extent that the sum thereof is not In excess it the Government and In the latter case when performance of the award.and of reseonable the tuition which would have ben paid to the the awarding agency makes available the restoration replied by the provisions of the participating educational institution. necessary exemption cartiAcates.(it)special haw (5)Salaries and related poet of inatraclare assessments m land which represent capital a.Settlement swerves.eetdemat who are employes of the organisation. improvements,and(iii)Federal income taxes. expenses including the followiaq arc (6)Straight-time compensation of each b.Any refund of takes,and any payment to rurally allowable employee for time spent attending clams the organization of interest thereon.whirls (11 Aaannting.legal clerical,and similar during wonting boars not In excess of 156 were allowed as award Meta.will be costs reasonably necessary for hours per year and only to the extent that edited either as a post reduction or sash (a)The preparation and prermtattom to . circumstances do not permit the operation of refund as appropriate,to the Government awarding agency of settlement claims and classes or attendance at classes after regular 47.Termiootion poets.Termination of supporting data with respect to the working hours:otherwise each compensation swards generally give rise to the incurrence terminated portion of the award unless the is unallowable. of cats,or the need for special treatment of termination is for default.(See paragraph Ls. e.Coss of tuition,fees,training materials, costs,which would not have arisen had the of Attachment I,OWE Cinder Na A-2142 and textbooks(bat not subsistence,salary.or award not been terminated.Cost principles and any other emoluments)in connection with covering these Items are set forth below. (bb)The termination and sepia ont if full-time education.Including that provided at They are to be used in conjunction with the eubewards. the organization's own facilities,et other provisions of this Circular in (2)Reasonable cote for the stays, postgraduate(but not undergraduate)college termination situations. transportation.protection,and disposition it level.are allowable only when the course or a.Common items The cost of items • property provided by the Government ec degree pursued is related to the geld in which reasonably usable on the organization's other acquired or produced far the award except the employee is now working or may - wolf shall pot be allowable unless the whoa grantees are reimbursed for disposals reasonably be expected to work,and only organization submits evidence that it would at a predetermined amount in accordance where hoopoe receive the prior approval or not retain such items at cost without with Attachment N of ome Circular A-110. the awarding agency.Such costs are limited sustaining a loss.In deciding whether sacks (3)Indirect costs related to salaries rod to the costs attributable to•total period not items are reasonably usable on other work of wages incurred as settlement expanses in to exceed one school year for each employee the organisation.the awarding agency should subparagraphs(1)and(2)of this pa pb, no trained.In unusual cases the period may consider the organizations plans and orders Normally.such indirect costa shall be limited be extended. • for current and scheduled activity to fringe benedta,occupancy cost,and d.Costs of attendance of up to le weeks • Contemporaneous purchases of common Immediate supetvtebn. per eupioyee per year at specialized items by the organization shall be regarded L Claims ander subowart e.Clatms seder programs specifically designed to enhance as evidence that such hems are reasonably stbawards,including the allocable portion of the effectiveness of executives or managers usable on the organisation's other work.Any claims which are mama loth'award and or to prepare employees for such petitions acceptance of common items as allocable to to other work of the organization are are allowable.Such cost include enrollment the terminated portion of the award shall be generally allowable.An appropriate share of• fees,training materials,textbooks and limited to the extent that the quantities of We organization's indirect expense maybe related charges,employees'salaries, such items on hand,in transit,and on order allocated to the amount of settlements with subsistence,and travel Coos allowable are in excess of the reasonable quantitative subcontractor/wbgrantees;provided,(hat the , under this paragraph do not Include tboee for requirements dottier work. • amount allocated is otherwise consistent courses that are part of a degreeoriented -12- • • • 46034• r Federal Register / Vol.45, No. 132 1 Tuesday, July 0 1900 / Notices ARNO • .curriculum.which are allowable only to the allocation on the battle of work or time period Universities Research Association. extant set forth in b.and c.above. benefited when appropriate.Advance Incorporated(National Acceleration tab). • e.Maintenance expense.and normal agreements are particularly important Argonne.Illinois • t depreciation or fair rental,on facilities e.Direct charges lot foreign travelcoets are Universities Corporation for Atmospheric ' owned or leased by the organization for allowable only when the travel has received Research.Boulder.Colorado training purposes are allowable to the extent prior approval of the awarding agency.Bach Nonprofit Insurance Companies such as Blue set forth in paragraphs 11.22,and U. separate foreign trip must be approved.Por Cross and Blue Shield Organizations t.Contributions or donations to purposes of this provision.foreign travel is Other nonprofit organisations as negotiated educational or training institutions,'nuhrdWg defined as any travel outside of Canada and with awarding agencies. the donation of facilities or other properties. the United Stales and its territories and ye o.e.as.asno ri.t rasa srs.y end scholarships or fellowships,are possessions.Howevef,for an organisation MP' eon rnse.eM unallowable. located in foreign countries.the term"keel. g.Training and education costs in exam of travel"means travel outside that country. those otherwise allowable under paragraphs b.and c.of this paragraph may be allowed (mss No.A-1221 with prior approval of the awarding agency. Attadanant c To be considered for approval,the ' organization must demonstrate that such Nonprofit OrsantzatYmraot Subject to this coats are consistently incurred pursuant to an Circular established training and education programs Aerospace Corporation.Ei sap s& and that the course or degree pursued to California relative to the field in which the employee Is Argonne Universities Association.Chicago. exp sow working or may reasonably be eebd IO wo'A' Associated Universities.Inooeporsted, 49.Transportation oath.Transportation Washington.D.C. -costs include 6'4414 eWm'cartage.and Associated Universities for Research and pottage charges relating either to goods Astronomy,Tucson.Muse purchased in prooesa,a"live These Atomic Casualty Commission.Washington. costs are allowable.When such cab oat D.C. readily be identified with the items involved, Banana Memorial Institute,Haadquarteoad in they may be directly charged as Columbus.Ohio ;transportation coats or added to the poet_,t Brookhaven National Laboratory.Upton, such items(see paragraph 2T).Where New York 9dentiltcation with the materials reoetved Center for Energy and Environmental cannot readily be made.transported=mob samara(CSR),(University of Arede may be charged to the appropriate indirect Rion) cost accounts U the organization follows a Commonwealth of Puerto Rico,Charles Mast jaonatstent equitable procedum In this Draper Laborattooryry, g in nova/moth Cambridge.Massachusetts.Comparative a.Travel costs are the expenses for Animal Research Laboratory(CARt�) transportation.lodging.Subsistence,and (University of Tennessee). Oekrida, related items mewled by employees who are Tennessee in travel status on official business of the Environmental institute of liigan.Ann organization:Travel costs are allowable Arbor,Michigan Environmental Health Pohmdatlan. subject to paragaphs b.through e.below. Richland,Wa when they are directly attributable to specific DT Resend. Ice ehintus Mole work under an award or are incurred in the adage. normal course of administration of the institute for Defense Analysts.Arlington, urge v b.Such costs may be charged on an aetod �t��Cu Texhsolop.Chieya Minnie basis,on a per diem or mileage basis in lbs. Midwest Research Institute,Headquartered • of actual costs incurred,or on a combination In Kansas City.Miseoort of the two,provided the method used results Mitre Corporation,Bedford.Massachusetts in charges consistent with those normally Montana Em rgy Research and Develops.* . : allowed by the organization in its regulu . Institutes.Inc.,pAIERDI).Butte,Montana operations. National Radiological Astronomy e.The difference in cost between flrstelass Observator7.Green Bank West Wgtdn air accommodations and less than Erst.dass Oakridge Associated Universities.Oaioridpth air accommodations ts unallowable except Tennessee when less than first-class air • Project Management Corporation,OalQidge. accommodations are not reasonably Tennessee, available to meet necessary missics Rand Corporation,Santa Monies,CaWoeaie . requirements,such as where less than first. Research Triangle Institute,Research class accommodations would(I)require . Triangle Park North Carolina dm-mitosis (ii)require travel during Riverside Research Institute.New York,Nets' unreasonable hours,(Iii)greatly Increase the York • duration of the flight.(iv)result in additional Sandia Corporation.Aibogomges.New . ones which would offset the transportation hirdeo• • savings.or(v)offer accommodations which Southern Research institute,Binabig(talb . are not reasonably adequate for the method Alabama • needs of the traveler. Southwest Research Institute.San Antonin, . d.Necessary and reasonable costs of • Texas family movements and personnel moveme�s SRI International,Menlo Park,Callfor�de . 1-:of a special or mass nature are allowable. Byrum'Research Corporation,SgearseA pursuant to paragraphs 40 and 41.subject to New Yotk - • —13— *U.S. Government r~<settes orrice : n,ts3 -ra-ter-tree i - • . Ordinance No. G19-93 AN ORDINANCE B![EINDING CHAPTER 3.12 ENTITLED "COMMISSION ON HUMAN RELATIONS" BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS: II Section 1. That Chapter 3.12 entitled "Commission on Human Relations" of the Elgin Municipal Code, 1976, as amended, be and is hereby amended to read as follows: q 3.12.010 Created. IIA commission on human relations is created. f 3.12.020 Declaration of policy. . A. The city council, in support of constitutional provisions against prejudice and the practice of discrimination ' against any individual or group because of race, color, religion, creed, sex, national origin, age, ancestry, familial -status or handicap, desires to establish a commission on human relations. To eliminate such prejudice and discrimination, an instrumentality should be established through which the citizens of Elgin may be kept informed of developments in human relations, the citizens and public officials of the city may obtain expert advice II and assistance in progressive practices to keep peace and good order, and private persons and groups may be • officially encouraged to promote tolerance, goodwill, 11 - interfaith and interracial harmony between all people. B. It is declared to be the public policy of the city to assure II full and equal opportunity to all residents of the city to obtain fair and adequate housing for themselves and their families in the city without discrimination against them because of their race, color, religion, creed, sex, . national origin, . age, ancestry, familial status or handicap, and to secure to its residents the economic., social, and professional benefits of living in an IIintegrated society. 3.12.030 Appointment of .embers-composition-term-salary. II A. ' The human relations commission shall consist of up to light members appointed by the mayor with the advice and consent of the city council. Commission members shall be as II broadly representative of the community as practically feasible, in such areas as race, color, religion, creed, • sex, national origin, 'age, ancestry, familial status, II handicap, education, welfare, labor, and management. There shall be two •x officio members of the human relations ii . . . _ 1 _ 1 • G. All rules of procedure and *regulations adopted by the commission shall preserve the right of due process under law established with respect to civil cases in the circuit courts of the state. S. The commission is empowered to determine the facts and such findings must be made by a majority vote of the commission. " I. The commission is empowered to issue an order for relief as may be appropriate, including monetary relief. In the case of an order issued pursuant to Section 3.12.090, the • commission may order such relief as provided in that section including paragraph (J) . The commission shall make a final administrative disposition of a complaint within one year of the date of receipt of a complaint unless it is impracticable to do so. If the commission is unable to do so it shall notify the complainant and respondent, in writing, of the reasons for not doing so. • J. Any resolution of a charge before a final order under this section shall require the consent of the aggrieved person on whose behalf the charge is issued. R. Judicial Review. Any party aggrieved by a final order for relief may upon application obtain judicial review of such order, in accordance with the provisions of Ill. Ann. Stat. Ch 110, paragraphs 3-110 and 3-111, in the judicial circuit in which the discriminatory housing practice is alleged to have occurred, and filing of the petition for review shall be not later than 30 days after the order is entered. ' f The commission may not continue administrative proceedings under this section regarding any alleged discriminatory housing practice after the beginning of the trial of a civil action commenced by the aggrieved party under an Act of Congress or a State or local law, seeking relief with respect to that discriminatory housing practice. 3.12.100 Affirmative action-City contracts. A. The city shall not contract with any contractor or vendor, maintain any financial relation with any financial institution, or use the service of any labor organization • or member thereof, which employs five or more person which does not first submit to the city a written commitment to provide equal employment opportunity. However when .a contractor, vendor, financial institution, labor organization or member thereof is the sole source of the particular work product or service desired by the City of . 1 Elgin and such work, product or service is essential for the efficient governmental operations of the City of Elgin such written commitment shall not be required. - 28 - • • • • The written commitment required by this section shall: 1. Set out and agree to maintain specific employment or membership, practices and policies sufficient to achieve equal opportunity; 2. Set out specific goals for participation by minority groups and female person qualified by or for training or through previous work experience. This provision will not infringe upon the right of the employer to determine the need for or qualifications of employees; 3. Agree to submit to the city upon request written evidence of the effectiveness of the above-required practices, policies and goals; 4. Agree to submit to the city upon request statistical data concerning employee composition or membership composition on race, color, sex and job description; S. Agree to distribute copies of the above commitment to all persons who participate in recruitment, screening, • referral and selection of job applicants, prospective job applicants or members; • 6. Agree to require any subcontractor to submit to the • • . city a written commitment which. contains the provisions required by subdivisions one (1) through • . . five (5) of this subsection; 7. The written commitment required by this section may also be satisfied by filing ' a copy of an affirmative action program of the contractor/vendor which is in effect and which has been approved by any local, state or federal agency with jurisdiction to approve such programs. . B. All such contracts by and between the city of Elgin and contractors and vendors for the purchase of the city of . Elgin of goods and/or services shall contain the following elapses: The contractor/vendor will not discriminate against any employee or applicant for employment because of race, color, religion, sex, ancestry, national origin, place of birth, age or physical • handicap which would not interfere with the efficient performance of the job in question. - • The contractor/vendor will take affirmative action to comply with the provisions of this ordinance and will require any subcontractor to submit to the city of Elgin a written commitment to comply with those provisions. The contractor/vendor will distribute copies of this commitment to all persons who • participate in • recruitment, ' screening, referral and selection of job applicants, prospective subcontractors." • "The contractor/ vendor agrees that the provisions of Chapter 3.12 of the Elgin Municipal Code, 1976, is hereby incorporated by reference, as if ,set out verbatim." • • C. Any contractor, vendor, financial institution or labor organization contracting with the city of Elgin will be required to submit to the city, upon written request by the city, compliance reports containing such information as to the practices, policies, programs and statistics of employee or .membership composition on race, color, sex, age and job description, as may be prescribed by the city and will require any subcontractor to submit a compliance report upon written request by the city. The required compliance report shall be substantially in the form attached hereto as Exhibit A, a copy of which is on file in the purchasing office. D. Before a contract is let to a contractor or financial institution by the city of Elgin, or before purchases are made from a vendor, the purchasing agent or city clerk must have on file a written statement from the staff representative that the contractor, vendor, or financial institution has a present or . proposed program which is approved as an acceptable equal employment opportunity or affirmative action plan for the utilization of minorities in their work force. Neither this section, nor any other section of this chapter, shall be 'construed to prevent the . - city manager or department heads from authorizing or doing business with contractors or vendors for emergency services • or supplies. I' E. In the event that any contractor, vendor, financial institution or labor organization contracting with the city -of Elgin fails to comply with the fair employment and affirmative action provisions of this section, the city of Elgin, in its discretion, slays 1. Cancel, terminate or suspend the contract in whole or in party • 2. Declare the contractor, vendor, financial institution or labor organization ineligible for further contracts for a calendar year; 3. Recover from the . contractor 'or vendor by setoff against the unpaid portion of the contract price, or otherwise pursuant to this contract, the sum of fifty 1 dollars per day, as liquidated damages and not as a penalty, for each day that the contractor or vendor shall fail to comply with these provisions of the • contract, as • determined by the city council after • • recommendation by the human relation commission in • accordance with its rules, the said sum being fixed and agreed upon by and between the contractor and the city because of the. impracticability and extreme difficulty of fixing and ascertaining the actual IT damages which the .city would sustain in the event of - - such a breach of contract, and said amount is agreed to be the amount of damages which the city would sustain; • . 4. Impose such other sanctions as may be recommended by the human relations commission pursuant to this section or other ordinances. Section 2. That all ordinances or parts of ordinances in conflict with the provisions of this ordinance be and are hereby repealed. section 3. That this ordinance shall be in full force and effect from and after its passage and publication in the manner provided by law. • A1,0744.■) • Geor• VanDeVoorde, Mayor Presented: May 12, 1993 Passed: May 12, 1993 Omnibus Vote: Yeas 7 Kays 0 Recorded: May 13, 1993 • Published: Kay 13, 1993 . Attest: • • Pe6S-+4 Attex4.49-- bolonna Mecum, City Clerk • • • • • • • • • • • 31 —