HomeMy WebLinkAbout94-6 Resolution No. 94-6
RESOLUTION
AUTHORIZING EXECUTION OF AN AGREEMENT WITH THE
COMMUNITY CRISIS CENTER
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,
ILLINOIS, that Robert O. Malm, Interim City Manager, be and is
hereby authorized and directed to execute a Subrecipient
Agreement on behalf of the City of Elgin with the Community
Crisis Center for the provision of medications and medical
supplies for the Health Center of the Community Crisis Center,
a copy of which is attached hereto and made a part hereof by
reference.
s/ George VanDeVoorde
George VanDeVoorde, Mayor
Presented: January 12 , 1994
Adopted: January 12 , 1994
Omnibus Vote: Yeas 7 Nays 0
Attest:
s/ Dolonna Mecum
Dolonna Mecum, City Clerk
14(!!011111
'y Agenda Item No .
11111
December 10, 1993
TO: Mayor and Members of the City Council
FROM: Robert 0. Malm, Interim City Manager
SUBJECT: Proposed Subrecipient Agreement Between the
Community Crisis Center and the City of Elgin
PURPOSE
To review the attached proposed subrecipient agreement be-
tween the City and the Community Crisis Center.
BACKGROUND
In 1992, the City Council allocated Community Development
Block Grant (CDBG) funding for medications and medical sup-
plies for the Health Center ( formerly operated by St. Jo-
seph' s Hospital ) of the Community Crisis Center. The at-
tached subrecipient agreement has been reviewed by the Commu-
nity Crisis Center and the City' s Legal Department.
FINANCIAL IMPACT
The $13,400 in funding for this project is contained in the
18th year ( 1992 ) CDBG budget (Project #154813) .
RECOMMENDATION
It is recommended that the City Council approve the attached
subrecipient agreement. Upon City Council approval, a resolu-
tion authorizing execution of the agreement will be prepared
for the first City Council meeting in January.
Rob rt 0. Maim
Int rim City Manager
ROM:amp
Attachment
SUBRECIPIENT AGREEMENT
COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM
HEALTH CENTER OF THE COMMUNITY CRISIS CENTER
COMMUNITY CRISIS CENTER INCORPORATED/CITY OF ELGIH
THIS AGREEMENT is entered into this ie Kfuday of '.' (4 ?LUZ 19 ' by
and between the City of Elgin, Illinois, a municipal co/oration
(herein called the "Grantee" ) and the Community Crisis Center, a
not-for-profit corporation (herein called the "Subrecipient" ) .
WHEREAS, the City of Elgin has applied for and r:-ceived funds from
the United States Government under Title I of the Housinc, ant:
Community Development Act of 1974, Public Law q3-333; and
WHEREAS, the City of Elgin wishes to engage the Community Crisis
Center 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 Community Crisis Center operates a free clinic named the
Health Center of the Community Crisis Center located at 6 North State
Street in Elgin, Illinois. The Health Center provides free medical
services to low and moderate income persons as defined by the U. S.
Department of Housing and Urban Development (see Exhibit A ) . The
Health Center is in need of medical supplies including , but not
limited to, analgesics, antibiotics, anti-convulsants, anti-emetics,
anti-spasmodics, asthmatic agents, blood pressure medications,
cholesterol agents, cold medications, diabetic agents, ear and eye
medications, gout medications, muscle relaxants, miscellaneous other
medications and sundry medical supplies ( bandages, swabs, syringes,
splints, gauze, hemostats, clamps, gloves, scales, scissors,
stethoscopes, thermometers, tweezers, etc. ) . The Subrecipient shall
be responsible for soliciting proposals for the provision of said
medications and medical supplies in a manner satisfactory to the
Grantee and consistent with any standards required as a condition of
providing these funds.
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The Subrecipient shall develop a specific listing of the medications
and medical supplies to be purchased. Bids on the specified
medications and medical supplies shall be solicited by the
Subrecipient. Purchase of the medications and medical supplies 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 the medications and medical
supplies from the selected bidder/vendor. Delivery of the
medications and medical supplies shall be accomplished by the
selected bidder/vendor. The medications and medical supplies
delivered 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 number of
Health Center clients served with the purchased medications and
supplies. 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 taker, 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 the medications and medical supplies by the Subrecipient
may be initiated on the date of execution of this agreement.
Purchase of all medications and medical supplies shall be completed
within twenty-four (24 ) months from the date of execution of this
agreement.
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IV. PAYMENT
It is expressly agreed and understood that the total amount of
funding to be provided for the Health Center of the Community Crisis
Center for the purchase of medications and medical supplies under
this agreement shall not exceed $13, 400. The Grantee will provide
payment, consistent with the purchase contract executed by the
Subrecipient, to the selected vendor (s ) after delivery and approval
of said medications and medical supplies 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 Community Crisis Center
Patricia Andrews, CDBG Administrator Trinka Waters
150 Dexter Court 37 S. Geneva Street
Elgin, IL 60120 Elgin, IL 6012o
(708) 931-5911 (708) 697-2380
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.
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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.
D. 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 (see Exhibit D) .
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.
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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 from 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 undertaker, 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 or, such
documents or materials prior to the termination.
The Grantee may also suspend or terminate this Agreement, in 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.
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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 OMB
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:
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1. For each client served by the Health Center the Subrecipient
shall maintain a file containing the following information :
a. Name and address of the client.
b. Race and ethnicity of the client.
c. Age and sex of the client.
c. Income of the client.
2. For medications and medical supplies purchased by the •
Subrecipient for use in the delivery of medical services by
the Health Center:
a. Specifications for all medications and medical supplies
purchased with Community Development Block Grant funds.
b. Competitive bid/solicitation documents for the
medications and medical supplies purchased.
c. Documentation regarding the review of bid documents and
selection of the successful bidder/vendor.
d. Written contract for purchase of supplies with the
selected bidder/vendor.
e. Documentation of acceptance of the medications and
medical supplies delivered.
f. Documentation of Subrecipient's request for payment to
the Grantee for the delivered medicines and medical
supplies.
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- Health Center clients. Said reports shall include
monthly client levels, number of low income (as defined in Exhibit A)
persons provided services , demographic statistics on the clients
served, distribution of medicines (most used/least used), medicine or
medical supply problems, and any other information as appropriate.
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4. Retention of Records - The Subrecipient shall retain all
records pertinent to the Health Center clients and expenditures
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, address, age, sex, racial/ethnic group and
income. Such information shall be made 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 or
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
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There should be no Program Income generated from this activity.
However, if Program Income is generated any such income shall be
returned to the Grantee for .use in the Community Development Block
Grant Program.
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D. Uniform Administrative Requirements
The Subrecipient hereby agrees to comply with the uniform
administrative requirements contained in 570. 502 (see Exhibit B) .
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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 Health
Center prior to January 1, 1997.E ' As used in this agreement "program
assets" shall Le defined as equipment 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.
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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
regulations in force during the term 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 agrees that it shall be
committed to carry out an Affirmative Action Program in compliance
with the City of Elgin Ordinance No. G19-93 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. 100 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 term "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 American 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 officer, 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 or
Affirmative Action employer.
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6. Subcontract Provisions - The Subrecipient shall include the
provisions 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.
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 - Where employees are engaged in activities not covered
under the Occupational Safety and Health Act of 1970, they shall not
be required or permitted 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 in whole or in
part with assistance provided under this contract, shall comply with
federal requirements of the regulations of the Department of Labor,
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 paragraph, for such
contracts in excess of S10, 000.
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5. Section 3 Clause - Compliance with the provisions of Section
3, the regulations set forth in 24 CFR 135, and all applicable rules
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 all
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 19G8, 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 Grantee.
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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
interest, 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 performance . of this contract 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 or appointed official of the Grantee, or of any
designated public agencies or subrecipients which are receiving funds
under the CDEG 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 ). •
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X. ENVIRONMENTAL CONDITIONS
The Subrecipient agrees to comply with the following regulations
insofar as they apply to the performance of this contract:
1. Clean Air Act, 42 U. S. C. , 1857, et seq.
2. Federal Water Pollution Control Act, as amended, 33 U. S. C.
1251, et seq. , as amended 1318 relating .to inspection, monitoring,
entry, reports, and information, as well as other requirements
specified 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 Subrrecipient 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 or older or that are
included on a Federal, State, or local historic property list. .
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Gretchen Yapnqy Date �R ert O. Malm Date
Executive Director I erim City Manager
Community Crisis Center City of Elgin
Subscribed and sworn to before me
/�` '
this /(�/ All�day of_ 7^��/^� 1994
7
Dolonna Mecum -
� City Clerk
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EXHIBIT A
if
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STATE: ILLINOIS I NCOME LIMITS
PREPARED: 12-23-92 PROGRAM 1 PERSON 2 PERSON 3 PERSON 4 PERSON 5 PERSON 6 PERSON 7 PERSON 8 PERSON '
PMSA : Aurora-E1 In. tL
FY 1993 MEDIAN FAMILY VERY LOW-INCOME 18200 20800 23400 26000 28100 30180 32250 34300
INCOME: 52000 LOW-INCOME 27800 31750 35750 39700 42900 48050 49250 52400
MSA : Siooltn9ton-Norea1. IL
FY 1993 MEDIAN FAMILY VERY LOW-INCOME 15850 leioo 20400 22650 24450 26250 28100 29900
INCOME: 45300 LOW-INCOME 25350 29000 32600. 38250 39150 42050 44950 47850
MSA : Chalupelpn-Urbana-Rantoul. IL
FY 1993 MEDIAN FAMILY VERY LOW-INCOME 14200 16250 18250 20300 21900 23550 25150 26800
INCOME: 40600 LOW-INCOME 22750 26000 29250 32500 35100 37700 40250 42850
PMSA : Chiclyo. IL
FY 1993 MEDIAN FAMILY VERY LOW-INCOME 18850 19050 21400 23800 25700 27600 29500 31400
INCOME: 47800 LOW-INCOME 26650 30450 34250 38100 41150 44150 47200 50250
MSA : Davenport-Rock Island-Mollne.
FY 1993 MEDIAN FAMILY VERY LOW-INCOME 13600 15500 17450 19400 20950 22500 24050 25600
INCOME: 38800 LOW-INCOME 21750 24850 27950 31050 33500 38000 38500 40950
MSA : Decatur. IL
FY 1993 MEDIAN FAMILY VERY LOW-INCOME 13900 15900 17850 19850 21450 23050 24600 26200
INCOME: 39700 LOW-INCOME 22250 25400 28600 31750 34300 36850 39400 41900
PMSA : Joliet. IL
FY 1993 MEDIAN FAMILY VERY LOW-INCOME 18050 20600 23150 25750 27800 29850 31950 34000
INCOME: 51500 LOW-INCOME 27800 31750 35750 39700 42900 48050 49250 52400
MSA : Kankakee. IL
FY 1993 MEDIAN FAMILY VERY LOW-INCOME 13350 15300 17200 19100 20650 22150 23700 25200
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 : Peoria. IL
FY 1993 MEDIAN FAMILY VERY LOW-INCOME 14550 16600 18650 20750 22400 24050 26790 27400
INCOME: 41500 LOW-INCOME 23250 26550 29900 33200 35850 38500 41150 43800
MSA : Rockford. IL
FY 1993 MEDIAN FAMILY VERY LOW-INCOME 14900 17050 19160 21300 23000 24700 26400 28100
INCOME: 42600 LOW-INCOME 23850 27250 30650 34100 38800 39550 42250 45000
MSA : St. Louts. MO-IL
FY 1993 MEDIAN FAMILY VERY LOW-INCOME 15300 17900 19650 21690 23600 25350 27100 26850
INCOME: 43700. LOW-INCOME 24450 27950 31450 34950 37750 40550 43350 48150
•
(7)
Ex hi61- Q
aestahaiiiii jiiii.iii•-•._
EXHIBIT B
EXHIBIT 11
f 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 C
(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";
J-4 12/88
(3) Attachment C, "Retention andliCustofial Requirements prov ions for
Records", except that in
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
for the final 7, time;n timeich the specific
activity is reported
(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,
(ii) Personal property not neededbythe to ecihe ient recipientor
CDBG activities shall be transferred
for the CDBG program or shall be retained after
compensating the recipient; and
(7) Attachment 0, "Procurement Standards."
EXHIBIT C
7. Subpart R of Part 570 is revised to read as follows:
Subpart I -- Otber Program Requirements.
Sec.
570.600 General.
370.601 Public Law 88-352 and Public Law 90-284 ; affirmatively
furthering fair housing ; and Executive Order 11063.
570.602 Section 109 of the Act.
570.603 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 I -- 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," 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
• 106 (b) (Entitlement Grants) and 106 (d) (2) (B) (HUD-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
R-1 EXHIBIT it 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) (B) of the Act (Subparts D and F, respectively) , the
requirements of this Subpart R 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 se .) , 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 ,
R-2 9/88
10 shall be consistent with achievement of
ns
ttegustatute
authorizing the financial assistance.
BUD implementing the requirements of Title VI with respect to HUD
programs are contained in 24 CFR Part 1.
(b) "Public Law 90-284" refers to title VIII of the Civil known Righasts
ts
. ) , popularly
Act of 1968 (42 U.S.C. 3601 et seS_ the policy of the
in Act, which provides that it is
Fair Housingimitations,
1
United States to provide, within constitutional
for fair housing throughout the United States and prohibits
any person from discriminating in the sale or rental of
the provision of
housing , the financing of housing ,
or 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 programs 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
smallcities grantees)ill certif to the affirmativ ly furthertfairction housing. the
Secretary
tary that i
(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 S70.602 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 devepment
nt
funds made available pursuant to the Act. For purpose
this section "program or activity" is defined as any function
cnd by an identifiable itb of government, ive unit of subrecipient, fhe
or
recipient, or by Y
lC-3 9/88
private contractor receiving community development funds or
loans from the recipient. 'Funded in whole or in part with
community development funds' means that community development
funds in any amount in the form of grants or proceeds from BUD
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
R_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)
• (i) In administering a program or activity funded in whole
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
ro ram or activity funded
administering a p in whole or pr
ogram
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.
(5) 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
411 sex is not prohibited when institutional or custodial
T-5 9/88
services can properly be performed only by a member of the
same sex as the recipients of the services.
(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 U.S.C. 6101 et se . ) 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 lug. ) also applies. However , these requirements
apply to therehabilitation of residential property only if such
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) . . . (be) 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
K-6 9/88
1
i
♦
4 i 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
i contained in 24 CFR Part 58.
)
S 570.605 National Flood Insurance Program.
I
Section 202 (a) of the Flood nisaster 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 S 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
1A (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) .
S 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) Ali 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) ;
K-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) ;
urban or submissionthe ubmis undef
an application to HUD by a city
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 perso
n 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 an providing
one-
section) ,
and ) (1
)
for-one replacement lacement units (paragraph P
h (b
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 disp
lacement lacement 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-incomedwlingo u units
its
housing , or existing
mayinclude public 9
under the
receiving Section 8 project-based assistance
United States Housing 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
co
nversion, 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 the bunitsr fthatuaretdemolisheds that uold
have been housed in
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.
(r)) 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;
(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 obvacjantive data, tha there is an low/moderatetincome dwelling adequate
supply of
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 HUD 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 HUD 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 ' I
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
(HUD'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 I
replacement housing assistance under paragraph 1
1(-10 9/88
(b) (2) (i) (C) of this section, in the form of a
41 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
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 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.
0
K-11 9/88
11
(2) If the household purchases an interest in a
Sousing 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 0
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 if:
(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
Twelling 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 HUD by a city or /
urban county under S 570.458 that is granted for
R-12 9/88
IA the requested activity (UDAG) . (This applies to
dwelling units owned by a Federal or State
agency as defined under the URA.)
(B) 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
displacement 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
HUD 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
section :
(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) (i) (C) (1) (i) of this section, the dwelling unit
must . be avaifib f to the household at a monthly cost
rent and estimated avers a monthly 9 utility cost
that does not exceed the Fair Market Rent or the
payment standard, respectively.
Al
R-13 9/88
I
(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 (i .e. , 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 whichthey are eligible. The minimum
9
requirements for such assistance under the UDAG Program are
described at $ 570.457 (b) . Under CDBG programs, persons
entitled to assistance under this paragraph must be provided
relocation assistance, including at a minimum:
Reasonable movingexpenses;
enses P t
R-14 9/88
111
(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
(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) Appeals. 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
F-15 9/88
r
(3) The grantee must maintain records in sufficient detail to
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
by person other than a
to dwelling units owned a
11/
Federal or State agency, as defined under the URA) ;
or
(B) The date of the initial submission of a final
statement under S 570.302 (a) (2) (Entitlement Grants) ;
the initial submission of an application to HUD by a
unit of general local government under S 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
bycityurban a o r 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
(ii) Other conditions of the temporary relocation are not
AOreasonable.
S 570.607 Employment 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. HUD 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
401 (b) of the Lead-Based Paint Poisoning Prevention Act (42
i 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
Jassistance 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 HUD-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) ; I
(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.
(c) 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 D.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 HUD-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.
E-18 9/88
(1) Applicability. This paragraph applies to the
- a rehabilitation of applicable surfaces in existing housing
which is assisted under this part. The following
activities assisted under the Community Development Block
Grant program are not covered by this paragraph:
• (i) Emergency repairs (not including lead-based . paint-
related emergency repairs) ;
(ii) weatherization;
(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.
(2) Definitions. - Applicable surface. All intact and
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
whole blood) or greater.
Lead-based paint surface. A paint surface, whether or not
defective, identified a having a lead content greater
than or equal to 1 mg/cm"
(3) Inspection and Testing
K-19 9/88
(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 HUD. 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. BUD 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, HUD 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
covered bythis
the programs o
assistance from any of p g
section is used in conjunction with other BUD 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 HUD 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, HUD 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.
•
R-21 9/88
(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-basd 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.
S 570.610 Uniform administrative requirements and cost principles.
The recipient, its agencies or instrumentalities, and
subrecipients shall comply with the policies, guidelines , and
-87 A-110,
of 24 CFR Part 85 and OMB Circulars A-87,requirements
as a applicable , as
Part44) , PP
A-
122, and A-128 (implemented at 24 CFRthis
they relate to the acceptance
sectionsaof 24 use
CFR Partr85 and funds
OMBunder
Circular
part. The applicable
A-110 are set forth at S 570.502.
S 570.611 Conflict of interest.
(a) Applicability.
(1) In the procurement of supplies, equipment, construction,
and services by recipients,
subreci
pients
and bys p
570.204 (c) ) , the conflict
those specified at 5
(including P
( 9
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
authorize such assistance (e.g . , rehabilitation,
X-22 9/8
preservation, and other improvements of private properties
111 or facilities pursuant to 5 570.202, or grants, loans and
other assistance to businesses, individuals and other
private entities pursuant to S 570.203, S 570.204 or
S 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, accompanies: 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
K-23 9/88
section, HUD shall consider the cumulative effect of the
following factors, where applicable :
(1) Whether the exception would provide a significant cost
benefit or an essential degree of expertise to the program
or project which would otherwise not be available;
(2) Whether an opportunity was provided for open competitive
bidding or negotiation;
(3) Whether the person affected is a member of a group or
class of low or moderate income persons intended to be the
Leneficiaries 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 undue hardship will result either to the recipient
or the person affected when weighed against the public
interest served by avoiding the prohibited conflict; and
(7) Any other relevant considerations.
5 570.612 Executive Order 12372.
(a) General. Executive Order 12372, Intergovernmental Review of
Federal Programs, and the Department 's implementing
regulations at 24 CFR Part 52, allow each State to establish
its own process for review and comment on proposed Federal
financial assistance programs.
(b) Applicabilia. Executive Order 12372 applies to the CDBG
Entitlement prorar„ arc the UDAG program. The Executive Order
applies to all ac: 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.
E-24 9/88
EXHIBIT D
•, `"'a Handbook 1300.19
le gel
e r U.S.Department of Housing and Urban Development
`L,,,cc • 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 )
xi- l :6tT
CF FO Distribution W3 1,R 1,R 51.(Special)
I _
l?fln . l4
(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-110 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.
'cc .
•
IT - •
•
. 6/83
r
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,
I 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
•
•
-1- 6/83
1
•
1300. 19
dash and "in-kind" contributions. In-kind 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 dompliance 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
6/83 -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.
• i. 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 REQUIREMENTS. 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-lip 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
1-5. 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-
. CZ= FRIDAY, DULY 30, 1976
<t
' az� s4E.S ppr
1 <iI 'qC be
i %
o ram4
�- v
,04,1•1934'�`+
. -I 4.101-
- -.. -- 0 i 5_,1 1 I,=-,
- rs.
1
i 1 it PART II:
.l:
:a S. OFFICE OF
.. : #:
`cat= MANAGEMENT
AND BUDGET
L-7-7-79;,,ovi.
. ..
r GRANTS AND
- y - AGREEMENTS WITH
ritutv.,21
INSTITUTIONS OF HIGHER
r .4- EDUCATION, HOSPITALS,
. yam, se AND OTHER NONPROFIT
i,. ._,� ORGANIZATIONS
. A-110
_ I',4
'
; iUniform Administrative Requirements
�.
r' ..
•
=16 NOTICES
OFFICE OF MANAGEMENT AND general revenue sharing. loans, loin 10. Reaponribilitle+—Agencies name-
_ BUDGET guarantees, or insurance, and (c) direct titbit for aecninistering programs that la-
payments of arty kind to individuals. eolve grants and other agreements with
'Costlier No A-110) b. The term "recipient" Includes the recipients shall issue the appropriate
GRANTS AND AGREEMENTS WiTH INSTI• following types of nonprofit organize- regulations necessary to implement the
TUTIONS OF HIGHER EDUCATION, Lions that are reroelving Federal fonds provisions of this Circular. All portions
$OS►ITALS, AND OTHER NONPROFIT from a Federal agency or through a of such regulation that invalve record-
ORGANIZATIONS State or local government: beeping sad/or reporting requirements
Uniform Administrative Requinmerrts Public and private institutions of high- subject to the provisions of the Federal
er education: public and private het- Reports Act and OMB Circular A-40
JUL? lr 1076. vitals; and other quasi-public and pri- must be submitted to GMB for clearance
To the beads of executive dep►rtments rate nonprofit organization-s such as (but before awing introduced into use. Upon
and esrtablishasects. not limited to) community action sten- request all regulations and instructions
$ublect: Uniform administrative re- vies, research institutes, educational as- implementing this Circular shall be
quirements for grants and other agree- eoclatiors, and health canters. furnished to the Once of Management
meats with.tastitution.s of hl:her edu- The term dots not include foreign or and Budget Agencies shall also desig-
cation, bostltais, and other nonprofit international organizations (such as nate ►n oftcia1 to serve as the agency
oreanlratlons agencies of the United Nations) and representative on matters relating iD the
1. hn-pose.—This Circular •procnul- Government-owned contractor operated impleaientaUon of this Circular. The
gates standards for obtaining coruliten- facilities or research centers providing name and title of ruck representative
ey and uniformity among Federal agen- continued support for mission-oriented. shall be furnished to the Office of Man-
eies in the administration of grants to. large scale programs that are Govern- 'gement and Budget not later than Au-
and other agreements with. public and went-owned or controlled. or are de- glut 30. 1i76.
private institutions of higher education. signed as federally-funded research' and 11. Inquiries—Further information
public and private hospitals, and other development centers. concerning this Circular may be obtained
quasi-public and private nonprofit or- 7. Requests/or escrpfiorts—The Ofbct by eont.fsctsng the Tutanciii Manage-
genlraUons.This Circular does not apply of Management and Budget may grant meat Branch, Budget Review Division.
to[?acts,contracts,or other agreements exceptions from the requirtanents of this OIDce of Management and Budget,
between the Federal Oovernatent and Circular when exceptions are not pro- Washington, D.C. 30S03, telephone 395-
units of State or lout governments hiblted under existing laws. Sip3.
covered by Federal Management Cir- However, in the interest of maximum Jugs T.Lew,.
gular74--7.- uniformity, exceptions from the re- Director.
3. Sportive daft—Tbe standards in quirements of the Circular will be per- Arracwtamers A.-Crrhy No.A-lie
the attachments to this Circular will be mated only in unusual cases. Agencies caws sssoarroasa
applied as soon as practicable but not raay apply more restrictive requirements
later than January 1, 1177. to a class of recipients when approved by 1. This attachment mu forth standarela
3. Srprrsesrion.—This Circular res- the O5ce of Management and Budget. governing the use of tanks and other tn-
einds and replaces parts III and TV of I. Attachments.—The standards pm- rttuvons es dtpcaitoris of foods sdvaaosd
the Appendix to Federal Management enulgat.ed by this Circular are set forth under grants •ad other ngretments
Circular 73-7, Adatinistration of college in the Attachments. which art: > >tiupt for situations dexrtbed to para-
graphs a, 4, and I. no Peden: sponaOTtag
and university research grants. Attachment A Cub depadtones agent"shall:
4. Paltry Intent—The uniform stand- Attachment I bending sad insurance. a Itequiry physical segregation of mob M-
aids and requirements included In the Attacbment C Itruention and custodial re- psalteries for funds which are provided to a
attachments to this Circular replace the qutrernente for rweee'le recipient.
raTyLng and often conflicting require- Attach:nen%D Program gamma a LLbttab any sitglbiltty rsQutumente
tents that have been Imposed by Fed- attachment 1 Cost &b.rtng and enatebiag for casb depoaltons for tuadi which are pro-
tral agencies as conditions of grants and Attacbment F etaadara for ISnancial mesa- Tided to•recipient.
agemeat •
system+ a A separate bank acmuat shail be required
other agreements with recipients. Attachment O Pibande reporting require- abet applicable letter-of-credit agraemeats
5 Applicability and scope—Except as menu provide that drswdowns will be made abet,
provided below, the standards promul- Attachment ! lionttortng and reporting the recipient's check are preaettd to the
gated by this Circular are applicable to prog^d' performaaoe. bank for payment.
all Federal agencies If any statute ex- Attachment I Plrmeat raqutrementa. 4. Any moneys advanced to a recipient
Attachment .7Revision of !Stenos./
l plena which are subject to the control or revile-
primly prescribes policies or specific re- Attachment PC Closeout procedures. Clot of the Cntud bus t or any of Its*Scars.
quirements that differ from the stand- Attacbmeat L •.napeaslon and termination genii or employes' (public moneys as dr-
eads provided herein. the provisions of procsduele abed Ito Treasury Circular No 1rs. as
the statute&hall govern. Atucbeteat M •tand►rd form foe applying amended) must be deposited in a bank rite
The provisions of the attachments of for Ivo") asistatO. Federal Deposit Insurance CorporsUon
this Circular shall be applied to subre- Attachment N Property management stand- (rDIC) insurance coverage and the balance
e:lpients performing substantive work .vas w
esceeding the FDIC coverage must be s -
under grants that are passed through or Attachment 0 Procurement standards. laterally secured.
I Consistent with the national goal of
awarded by the primary recipient if such S Tscrpfions for certain recipients— expanding the opportunitis for minority
subreciplents are organizations de- Notwithstanding the provisions of pars- buitncas snterprtaea, recipients and sub-
scribed in paragraph 1. graph 7 If an applicant/recipient has a recipients shall be encouraged to um mince-
d. Definitions. history of poor performance, is not S- lty banks (a bane vbleb La owned at►seat 10
a. The term 'grant" means money or nanc)ally stable, or its management rya- percent by minority group members).
property provided in lieu of money paid tern does not meet the sten lards pre- Amen-wren I-Ctactrtm No.a-110
or furnished by the Federal Government scribed in the Circular. Federal agencies eoxeires&WS asva.-ea
to recipients under programs that pro- may Impose additional requirements as
vide ftnar►cial assistance or that provide needed provided that such applicant/ 1.Tbla attachment seta forth boedtag and
support or stimulation to accomplish a recipient is notified in writing as to: Insurance4e��e eoti for
grants
is soder other
public purpose. The term "other agree- a. Why the additional standards are D p
log and insurance requirements shall be tor-
ments"does not include contracts which being imposed: posed other than Moat aormaliy required by
are required to be entered Into and ad- b that corrective action Is needed. the recipient.
ministered under procurement laws and Copies of such notifications shall bt incept .s otherwise required by law. a
regulations Grants and other agree- sent to the Office of Management and [,ant or other agreement that requires the
menu exclude (a) technical assistance Budget and other agencies funding that contracting (or subeonuscttbg) tor eon-
programs,which provide services Instead recipient at the same time the recipient etas trotfor oefacility
acili t untie iemlots hill ro-
i of money, (b) assistance in the form of is notified.
PIDItAI Matte, VOL ai. NO. 141J11DAY. NIT 10, left
•
-1- .
NOTICES 52017
*obemea1 relating to bid twrsat•ee, per- I SeelySeat erasatrattone should be ►u• it-Clad socDtbuuons elude by rworsta or
Screens bonds, sad payment bonds unless aortic! ►y the Tetras.: sponaorea steam, eubrmupieou (se reform! to La parsrspb II
the construction motnet or subooavect es- if they so desire, to evbsUtvta aticoLlm of the baec cVeular),or third p►rusr La ust-
e.eaa $100,000 Tor three contrscv or sub- sops,to lieu of ortttool reoorda. tserlag tort saartat end matc.L,tag require-
sontr•cte escseclat 0100.0oo, the Pedant) •. The Pvteral spcasoriat usury shell re- swan of Pederal epoaaortag sae:.dte Tbu
woo slay beorpt the boy dlos policy cad west treaafer of errata records to Ito its• sttarhmant Liao erabliehs er.tru for the P
sequtr+a»Dte Of the graptor provided the lady from recipient errixieattons .beta tt er•s.ivatloa of hefted soav:butloaa mite by i
pbderiJ tgeDty boa made a determinaUoa dearmios that the reoorda poising long- third parties, wad rupplernstie the whence
that the Oovertm•at's tatsrest Le adequately Ors retenuoC mites ltome•er, m Order to on forth m Pedrr►: bLer..agemaat Circular C
pro ter tad. If such • deuormiastlon has not ovoid dupIic►te record•tupMg, a Pectoral 7)-I rim reaper to eon sharing en War-
been anode.the minimum requirements obeli spa aseriat adraey may mat a reagemeats ally•eponaored wawa.
be es fellows: receLplent organLeauona b wait way I. Tice tollow1.4 elef.aJUoas apply far Ys
P.A bed araatae frve rich sae,am'ita. rsoorde that are sonteuously seeded for pu+pooe of this attachment: .
U nit M Aw per of sins bid prim— (slat two ► Prefect says—Project sorts are sU bl•
Tbs •b4 g ler+othe• shall eoaalat of I Sate 7.Tb•bead of the P•derwl rponeartat Stan• b.+bie eau (ea set forth m the applicable
ewer v ttarat Nca as a'►id toad. oertiele e7 and the Comptroller Otoert)of the railed here: mart preciplu) mcvred by a rsetpl• 1
erect. or other negotiable taitniment Sc. MDt Olathe.or ay of
biro t dui/ tolaea d tepee- S made bythe etimil the raise of the t •i {il sr tau
eempasying a bid as aowozoo tact the Ea.
Mr .t11,upon scaptaaoe of by bid.ssscute beota,Mx-um/sta. papers. Sad re orda d the V l000mplutag the oblectivel of the pint
sued etatrtctutel bocum,oto as may be n• recipl•at orge lsatioa said their euhre• or other•ree=ent cartel tb•projecI er pro.
Wined athla the time sped/led. alp leala to leak• audits, ee sometime• es- fir+•m Partoll.
b. A per/onnswee bond on the part of Ms eery u tri.sad oaeripta. b.Cat&Aar-fnt ewe ow Wits,—to general.
eo•Iroetor
tor
JOo prrerwt of tine ec'af oef a Cnlsse ethsrwLe required by law, so wart •haring and mate tint wprwaat that
��t—A'per!orma.ace bond"ie oDe e:eeutet Yawl aril apoaaortot War? Utah w fa- po pLa - rtba er Pm)."or yrtreas soma sot barns
reona•eUea vltr a aoatrsct to •+cur• tut• svletbae en recipient organisations that will 17 the Peden! Oe',rLaaeat•
ail at of di the OMtractor'• Obligations limit public acc.•a to the rmanrda of reeltpsat t.CAA monbitrtirb+v-Cash ecatributitaaa
wader sub so:treet. . ergsntrauoaa that ore p•rttnaat to a rams represent the recipient's cub outlay.iaeJud-
0.A pymtat bawd vi the put of the lexceptw• er ecreemeat except Then the atrae7 ma . lai the t►itlay of money coavlhuud 1e We
vector /e'r t0A pecoraf of the oo*tract demoostrste that such records must be 1ept reclpleat by eon•M.rtt third Parties
A-paymeat bond"Ie woe ssacut+d>a soa.fde0Ua1a sad would have been tempted d. fe•btwe easfriberics-1a•tind aDatel-
soaa•cUoa vith a ooatr•ct to eaaur• poi• from disclosure puretaat to the ?rectors of buttoaa represent the'►hits of aoace,ah ONO"
ad at as required by Lay of all persons sop laformatioo Art (I CA C 112) if the reoorda tritiutioaa provided by the recipient bed
Nymat labor sad material In the esecutioa N II" be)onged le the fielders; agaoaaortag eoa•Pederel third parties. On)y Than au•
/h• wort provided for to the ooatrwet Wary. War:sad by Hdere.l IeKtaisuoa,may property
ed
II.Intro the ed l Oo•ercrosnt p = with Petaral Suede be eoas;itoed
fie• *me main D.--Cnessaa No. 6-110 ar the roc fp leat'a Le-kJ ad son tributbaa. Rs•
Ism or lames the r•peymett of cocci woa.>r mom e b be m ld eontrtbvtas may the ! of
borro�e6 by the reclyleat, the Pederol Sher s for real property and
agency, st Its discretion, may requirepbe• I. Pod•rsJ spoaeortat egaoda SUM apply able personalproperty sod the • us of
O tis boeidtag Sad taeursnd if the hoadiat the euadento wit forth a this attachment La rode and sarricas etrm•etly beaettlag the
lee Ineut►aa regvir•meau of the rvelpl•at tequiriag rectpiaat erg•t tstbnt to oeoouat spec Ifeslly We a tillable to the project a
are not deemed adequate to protect the tee fa protrsm LDmome related to projects progred
Serest of the federal Oo•erameat. fastest to whole or m part with federal I. Oeaerel guid►tias for enmpvttag ot*t
d. The rederw) rpcnaoring eeetel may n• funds Pro-am LaeDm• rrprs4ate tree to- Waring or matetiag ere as fellows:
VW/ adequate 1de:ity bead aceersge when some earned by the recipient from the fed- a. tDort aharlag or sateh.idg say semelet
the recipient bee no oo•ersge and the toad is brolly supported aet!•itis lveb a rttage aa• tl:
eoeded to protect the Oa•erameath tatarst• elude latent 'arced ea sd•eacs sad may (1) Charm tarurred by the recipient Y
1 hire bead ore required la the eltus• la elude, but will sot be limited to, lam me project ecru (Not al) Warps require ash
lieu dsecrlard above.the bonds obeli be ob. from write few,We of eor,ftsttls, uaag• outlays by the recipient during b' project
tatted from oompasls bolding tartar-etas of jot few te and royalties on patents sad per bd, examples are depredation wad tree
authority ea bearable sureties (I1 en ea g rim 00rrr4/fl chart es for buUCap sod squlpmeat.)
NW. I. lators ecru Hal t earned ea *delta of Pod (I) Project lo•! w so
h oh ese-
Amen earR C.-CsevtY lye. M110 tub et,elan be remmttod ro the Pedera:aphcy r9bvte4 or donated to the reelpuat by olio'
sroept for interest •awned eo adra.t ore b lea-Ted.ere)public epodes sad t atitutioow
lsrarriole liar P0S?Deal Wctueaerrs Pa States or tanrimeafelttIs of•State se pro- and prints orrentsulane sad tad!elduaia.
LWOW Tided by the lateryov•rameaa] Covp•rstioe sr/
I. n is•taehm•at We forth record ratan• Act of IOU (Public la. 00477). (I) Project sorb rvpreasated by errehee•
tbo iqu)retrtetle for elate and otter air••• $ Roneeda from tilt eat• of real sae per- and real and persona property,or us uere-
beats with re Ieats. f ederel sponaortag moat property either provided by the Pea. et. donated ►y ether soa•feder•1 public
ern Ooverameat or purchased to shale or la steatite sad tartltutbna, sad private WW1'
agracls ethall set tmpa.e lay record teas• pert with Perdue/ fuode, shall be beadled m a.uaUon►sad iotilviduaia.
{too rsquLemeau upca recipients other this secorti nt:e with Attarhmeot N to this sir- b All ecotrlbuUotu, bath mob and la-
those described below. solar pertaiatog to property meragemsat. glad,shall be accepted •► part of the netpt-
1 !step( for persgrspb 1,this attaetmeat 4 Ca7ae the cement
Nam applies la subreupleau ee referred b Kr provides "ha' •at'• cost &hart" sad satehlhi .haw ouch
la pvsg?spb I of the buts circular. the
reclplente shell hi'. DO obllgatie: to eontribuUoae meet all st the followtag
1 Piteaeit)records,supporting documents, the Tellers.) Government with respect to altsria:
sletiatical records.and all other record'pent- "'At". "Ical'M u a result of mpyrlghle et (3) Are eel habit trots Y• recfpleetl
Pent to ea th�'wt aha)1 be tal ofor a p.,
sgreaeemu eat produced(seeyaregra ubdrrpb theI,Atgrtaeatehm or
ea ethert1t , co(I) Are rerds;
) set tattooed
as eeotrtbutbna Sr
quillfi�sree yemeaars, with thrae foUaowlaa $ All other program Income sinned during a07 other fedtrell7-1aatstad prntahL
a. If lay litigation.edstm or sudlt is started the project period shall be meleel by the (I) Ara alma._ry sad rueoaabla to prvp-
►•fore the•splrstioa et the!•year period,the reclpteat sad, la aeeords.nee with the great at Sad emet•nt baoomptiahlasat of peo)r%
Moor& shall be retataed until all Utlf;at(ons. Mother atrremeat shall be: eb}Ktt•te;
elstma,or audit boiliap LDvolvlat the records a•Added to fund eesa'tlttaa b Ye prpj. (4) Are Mos sr charge"that 'mind be W-
iest beta resolved. est by the P•Cersl rroosortat agency bag loesble under the eppllsble soil principles,
b. !tees re for feat ndable reelpieat organisation end be used to further (I1 Are eat Pita by the Peter►: Oo'arn-
party K' •lig1ble program o►}vellum; Meat order soother sn'ctaau eg-+rment
twabed with Pedertt toad ►h►11 be /*Soloed b. teed to Daaaoe the aoa•Pedersi able (value the sgrsaxnt is evtaorued by Pot•
f)ears wfter Its 1r.Al lupeeltloal of the project Taea &premd by Ys Noma mast laT So be used far stall ahartag o match-
s. Eby record,w trsaate ag to o main• rpoaaortai sKeaq;or tog):
Weed ►y the widest rponrort sot opplies- is determining the art coca oil which the •R Thin require; by the Ptedertl tigvac7,sad
bl•to the►eefpleat. Paden!abate of cuts will be baud. (1) OoaJorm b other prevlaioos of this
4. The ►etsotb Y
a period 'torts from e tb
date of the submission of the fall aspeadJ- •Arrac'Te i A at tat meat.
? sc tM No. -111 bus per reelplsnt la-:Lee enaa7w•
tuts report Sr. for grants lad ether scut mums AND save s dons will be ertabliaCee LD beto►daos with
Beau that we ?entered anavelly, fromm %b Y• the arpllbie cot prsttaelplm.
data of the irvbmtastoe of the annual 1. This ettaetmeat eats forth altar's Led I. 1pectdue prcradue for the recipients 1a
finaadlalMidas repot{. procedures for the alloweblity of oath tad sabluhina the value of La-glad eteDVlbu-
RDftul ItOlmr, VOL d1, NO. 111--f+lrDAT, MT 10, ion
—2—
32018 NOTICES
torah from lbon•hdsral third parties are met• and.
d Vto the extenter services
feasib e.supported by the withcompliance
the terms and oo di ores of Teelers!
a
Pots bolos
a I•Jration Of rrlunrcn ae+nrrs—Vofun• acme methods need b7 the recipient for Its grants and other agreements such tests
teer services may be furntthed by professional employees "maid taciude an appropriate sampling of
and technical per►onne: consultants. and b The basis for determining the valuation Peden: agreements Esaminhtlons will be
other tilled and unskilled labor Volunteer foe personal 'services. material. equipment, conducted with reasonable frequency, on a
services may be counted as cost}sharing or building► and land must be documented. usually
o continuing au►asis but not or at scheduled
lure Intervals.
t ertban
matching if the service is an Integral and ArraCgrtne 7—Carus-ea No. A-110 every two years The tee fr of theme ea-
rn part of an approved program
(1) ✓l stra foe rolswfeee services—Rates for Raxsaana ►oa rtwaeCtas nasraQrwil r ta+lnatioril stall depend upon the nature.
volunteers should be consistent with those dental& site and the complexity of the•ctvtity These
paid foe similar work In the recipient'seaamtnattoru do not relieve Federal agencies
h organisation In those instances an canoes the 1 Tht'attachment tsyste prescribes standards tot of their audit rsponalbilittn.but may►lest
orgfinancial management systems of recipients the frequency god scope of suet audits
required skills are not found In the recipient Pederal sponsoring ageneis ab►li mot impose I A systematic method to assure timely and
orphizatton,rates should be consistent with additional standards on recipients unless ape- appropriate rasolutioo of audit f.ndtap and
gnome paid for similar cork in the labor mar- effic►1l) provided for in the applicable sta• recommendations
bet• In which flit recipient competes for the tutus leg. the Joint Funding 61mp:iflcauoa i Prlmar7 rectpfenL ataI1 require eub►'-
kind ofaarrtets !evolved. Act.PJ- i3-310) or other attachments to this elpients (as „teepee; In par►grapb a of the
(ti Votsinteers employed by other eroani• circular )(o•e,er. Federal sponsoring wren-
satiates
circular) to adopt the standards la tatsowt—*then an employer other than the ties are encouraged to make suggestions sad paragraph 2. above erupt for the require-
recipleat thesefurnishes the services of an 'en- assist recipients to estbaluhing rr improving mint in subpar graph k. regarding the use
pio)ee, s'rvicn snail De valued at the financial management systems vixen such aa• •f lye letter-of-cede metbc4 •red that pan
employee's regular rate of pay reclusive of instance Si needed or requested. of wDp rsgrapt i. regarding reporting
fringe benefits and overhead cons) provided 2 Recipient,' financial management s7a- farms and fregteencts precribad to portin-
tfiese services are In the same still for which tams shall provide for: menu 0 to isle circular.
employee U normally paid a Accurate, current and complete Mielo-
b Vs/nation of donated, erpeadeblf per- sure of the financial results of•ch federally ArraczeineT O.--carcr..a leo.A-110
wnal propenfy—Don►ted. 'spendable per- sponsored protect or program in sovcordaaes rtseawt•ta> s. oaraee asorarassaeea
moral property Includes such items as ex- aim the reporting requirements set fartb >a
pendable equipment. oft" supplies. labor•- Attachment 0 to this circular. When a Pad- 1.This attachment prescribes uniform re-
lory suppilti or workshop end classroom oral sponsoring •geocy requires reporting on porting pocedurs for recipients to: sum-
supplies Value assessed to expendable per- an accrual basis, the recipient Mall not be marine expendituresmade Lad Federal funds
paal property included In the cost or!mac"' required to establish an accrual accounting unexpended for each award.report the status
tag share should be reasonable and should system but shall develop such accrual data of Federal cast advanced. request advances
not 'acted the market value of the property for its reports on the bests of as ►nalyell of and retmibursemieat vhea the letter-of-credit
at the time of the donation. the documentation on band method is hot used, and promulgates stand-
s t Valrattow of gonored, wonexpe dable b Records that Identify adequately the and forms incident thereto.
persowaf property• buiildrnps, •cad h d 0+ source and application of funds for federally i The following dennitlona apply for pur-
sue thereof. sponsored activities These records Mall con- poses of this attachment:
(I) The method used for charging cost won Information pertaining to Federal a Accrued sapenditvru—Accrued ea-
snaring or matching for donated cones- awards, authorisations, obligations, unoblt• penditures are the charges incurred b7 the
pendable personal property. buildings and gated balances assets, outlays. and Income recipient during a given period requiring the
land may differ according to the purpose of a Effective nontro: over and accountability provision of funds for. (1) gas and other
the grant or other agreement as follows for all funds property and other a.seu Ile- tangible property received. 12) aervtos per-
-_1st If the purpose of the grant or other elpiente shall adequately asfeguerd all such formed by employees.contractors,arubrecipi-
agreement is to assist the recipient In the assets and shall assure that they are used ens. and otter payees and (3) other
acquisition of equipment. buildings or land, solely for authorized purpws amounts becoming owed under programs for
the total value of the donated property maj d Comparaso.s of acquit outlays with bud- 'ankh no current service& or performance es
be claimed as cast sharing or matching get amounts for tact grant or otter agree- required.
1b) If the purpose of the agreement Is to meat Whenever appropriate or required by b Accrued swop(—Accrued income Is the
support acUvitlel that require the use of the Federal sponsoring agency. financial In- sum of (I) earnings during a given period
equipment. buildings or land depreciation formation should be related to performance from (II service performed by the recipi-
or use charges for equipment and buildings and unit cat data tnt, and (II) goods and other tangible
may be made The full value of equipment or e Procedures to minimise(he time Canting : property delivered to purchasers. and (i)
otter capital assets and fair rental charges betwten the transfer of funds from the VA amounts becoming owed to the recipient for
for land may be allowed provided that the Treasury and the disbursement by the recip- which no current services or performanoe Is 1
Federal agency has approved the charges lent. •henever funds are advanced by the required by the recipient.
II) The value of donated property will be Federal Ooserament. When advances are c. fednal Jtiwd& authorised—Federal
determined In accordance with the usual made by• letter-of-credit method.the recip- funds authorised are the total amount of
accounting policies of the recipient with the lent shall make dra•do•ru as close as pcs- Federal funds obligated by the Federal Oov-
following qualifications: bible to the time of making disbursements. eroment for use by the recipient This
Lewd sad bvildrnps—The value lee ableness
Proceduresableness •llos►bllity and afor determining the reason- amount busy Include any authorised carry-
(*)
donated land and buildings may not 'steeduocabtlity of costs ever of unob)lgeted fuada from prior Racal
Its fair market value.it the time of donation in accordance with tine provisions of the •p- lean when permitted by law or ageeey
to the recipient as established by an trade• piitab:'Federal coat principles and the te 11 rms regulation.
of the grant en other sgrKmsbt.
pendent appraiser leg. certified real prop-
erty trlDutlonbt are Gelded contributions fa Attachment f to
appraiser or OSA repretentatlsesi and g Adeounting records that art supported thb circular.
certified by a responsible official of the bl source documentat.loa.
• ()Wipe none—Obligations are the
rKlpMot. IsEaamin►ttona >D the form of audits or •mounts of orders placed wntrscu and
(b) Nontspendable personsi p+apr+fy— internal audits Such audits shall be made rant& awarded. Krvicei rKelced. and hunt-
' The value of donated nonexpendable personal by qualified individuals •ho ire sufncsentle giar transactions during • glues period that
propindependent of those who authorise the ea-
valuerty not 'acted the fair market pendilure of Federal funds, Sc produce ten- will require payment by the recipient during
vague of equipment and property of the same biased opinions conclusions of the urn, or a future period
age and tondttlon at the time of donation They shall meet the Independence judgmentsriteria T Outless-Outlay's or expenditure"Pra-
tt) glee Of spare—The value of donated along the tines of Chapter 3, Part 3 of '.lee sent charges made to the project or program
s apace shall not 'steed the fair rental valveTheymaybe reported on a cash or accrual
DU b General Accounting Office publication. basi To reports rr red on • east Ir►s
of comparable apace as established by an Standards for Audit of Governmental Organ- Prepared
Independent appraisal of comparable 'Dace 'tenons. Progrsnrs Activities and Functions. outlays are the sum of actual cub disburse•-
and facilities In • rivately-owned building These exemmanons are intended to aster- menu for direct charges for goods and serv-
e
to the cam'Iou11t tale the effectiveness of the financial man- tree the amount of indirect espen►r charged.
- 1di Loaned equipment—The value of agement systems and internal procedures• the value of In-kind contributions apt
loaned equipment shall not esceed Ste fair that have been established to meet the terms and the amount of cash advances and Fay-
rental value and conditions of the agreements It Is not menu
mane
ccbusfipienta bests. out) ys Tor reports
pre-
d The following requirements pertain to Intended that each agreement a•arded to the pared on a�
a the recipient's supporting records for In• recipient be examined Generally. teaming- aunt of actual cash disbursementshe for direct
kind ContrlbuUors from non•Federai third tion`w aetinn uld be bass toondurted cm an leSt the fiscal 1nte�tty of of Indirect ntza• charges r toots experarato urred,tlietretve of tnt
peruse
ffIDft►t I11011T1t, VOL. •1, N0. 111--FtiDAY, JUlY $0, 110711
—3-
.I.L4J17
kind contributions applied. and the or Les- Ratua Report (original and no more than b. Ouflsy treat and regi t for treyes-
ersese for decrees') In the amounts owed by two copies) to later that $0 days aster the ►sirsevseai eve coratructtos pro/reeno (ix-
-the recipient for goods and other property end of each *pscUSod reporting period for atbet 4).
received lot services performed by employ- quarter:, and errnl-annual reports and ID (1) Lich Federal spottaoririg agency shall
teetnctors, subreclplents and other deli for atnuai and Earl report. Lsteoaloaa adopt the Outlay Report and Request for Re-
pay... and other amounts becoming owed to reporting due dates may be granted upon tc burrmsnt for Construction Prograaa •s
under roc-eau for which to current Derv- request of the recipient the staodarditad format to be used for »-
ka or performance are required b Airport of Prar►& Caul Tesnaaertowt questing rstrnbursemect for construction
g Morass Income—Rogan Income Is (islibif 2). programs TA' Tedera) epc:sorILg agencies
dented to Attachment D of the circular It (I) When fund" are advanced to may. however. have the option of tubstitut-
may be reported on a cash or accrual buts. recipients through letters of Credit or with lag the Request for Advance or Reimburae-
whicbever Is wad for reporting outlays Treasury checks, the Federal sponsoring went Toren (subparagraph 4a) when the
h vnob:ipetrd balance—The unobiipted agencies shall require each recipient to tub- Federal agencies determine that It provides
balance la the portion of the funds author- milt a Report of Feder+: Cash Transaetlons adequate tt.forrnatioa to meet their settle
Iced by the Federal sponsoring agency that TTe Federal eponiorlag agency shall use this (2) Recipiento ah►J be authorised to rub-
has not been obligated by the recipient and le report to monitor caa.r,advanced to recipient* molt request for reimbursement at least
determined by deducting the cumulative and to Obtain dsburuement Information for monthly when letters-of-credit are not tined
e►bllgstioas from the cumulative funds au• each agreement from the recipients Federal sponsoring agencies+ball not require
anew Used. (D) Tsderaj sponsoring agencies may To- more than the original and two copies of the
I. Vatic/sedated obll,stbwa—Pot reports quire foretaste of Federal oath requirements Outlay Report and Request for Reimburse-
prepared oa a Lash basis. ualiquidated obis- In the "Remarks"section of the report. went for Construction Programs
pilots lepriseoF the"smount of obligations (I) R'bet practice: and deemed Deoaaaary, I When the Federal sponsoring wanes
Incurred by the recipient that has Dot beet the Federal sponsoring agencies may require need ►ddiuonal information It wing there
paid Tor report. prepared on as accrued as. receipt* to report in the "Remarks" section forms or more frequent reports.the following
peod:ture beau they represent the amount the ►mount of cash advances in tsars of shall be observed-
of obligation incurred by the recipient for three days'requirements in the handle of sub- a When additional laformatba k Deeded
which at mite? has not beet recorded. recipients and to provide abort narrative a+- to comply with legislative requirements.
a Only the following forms will be au- plana ions of actions taken by the »01pin:ta Federal 'ponroring agencies shall Wye to-
thorlsed for obtaining dDanctal ledertnation to reduce the excess balance rtrueuOn to require recipients to submit
from recipients (4) Recipients shell be required to submit such Information under the -Remarks are-
a ?manna: ftetua Itepoet (tslifbbf I). hot more than the orlgir.a: and two copies of Lion of the reports
(R) Rash federal sponsoring agency 'halt the Report of Federal Cash Transactions II b. Whet necessary to meet epeettle pro-
Twquir» recipients to use the etandardised working days following the end of eseb gram needs Federal sponsoring agencies shall
TINnctsl Lingua Report to report the status quarter The Federal sponsoring agencle' Ribmit the proposed reporting requirements
et funds for all nonconatructiot projects or may require a monthly report from ohmm to the Finaoc)a:Mar.agement Branch.nudge%
programs The Peden; sponsoring agencies »ciplease receiving advances totaling $1 Review Division, OfAce of Management and
may Rfowe•er, have the option of not re- million or more per year. Budget for approval prior to submuaion of
qutring the Financial lutes Report shah (I) Federal sponsoring agencies may wit'' the reports for clearance under the pro-
the Requo! for Advance or Relm.bu-•eemeat the requirement for submission of the Report Caen.et 0141 Circular No A-40.
(paragraph ta) or Report of Federal Cash of Federal Cash TT►taactlons when monthly a When a Federal sponsoring agency has
7r►naections (paragraph 2b) is determined advances to hot exceed 110,000 per recipient, determined that a recipient'.accounting to provide provide adequate information to meet provided that such ad•ancu.ere monitored tem do not meet the Iltandarde for Ti-
their heads. except that a finial T.aancial through other forma containedn io.SAna at- Joancla: Mugemeot contained In Attach-
Status Report shall be required at the com• tachment, or If. In the Federal sponsoring matt F to this circular, additional pertinent
pinion of the project when the Request for agency's opinion, the recipient's accounting Information to further monitor grants and
Advance or Reimbursement form is used only Controls are adequate to minimise exceeetve Other agreement. may be obtained upon
for advances Federal advances written notice to the recipient until such
(a) The Federal sponsoring steno? ahall 4. 7.scept as noted below, Daly the follow- time as the',stem Is brought up to standard
prescribe whether the report shall be On a lag forms will be authorized for the retipi- d. The Pederel sponsoring agency, In *b-
east or accrual basin If the Federal sponsor• ants In requesting advances and reimburse• tanning Information as In pa egrapha a. b
tag agency requires accrual information and manta. and c above must comply with report dev-
the recipient's accounting records are not a *Wow! Jor Adossre ar Rei+sburMernert ash requirements of the Oaks of M►aage-
lborma:iy kept of the accrual but., the To- (ishtbtf J). meat and Budget Circular No. A-40, as se-
elplent shall not be required to convert Its (3) Lazo Federal sponsoring ageaey shall •Led•
accounting system but shall develop such adopt the Request for Advance or Reimburse- I Federal sponsoring egeoeiu ►act the
*rerun Information through beat s::mates men? as a standardized form for all noncom• option of shading out en, line Item on any
based on as ana:jets of the documentation structlon programs when letters•of•eredlt or report that Is vaneuuary for deeissos•mak-
en band predetermined advance methods are Dot used ing purpo es
(Si The Federal sponsoring agency *hall Federal apor.loring agencies, however, have T. Federal rponsoring agencle: should re-
determine the frequency of the Hoancial the option of using this form for construe- cept the Identical icformation from the re-
Ltatus Report for each project or program lion programs In lieu of the Outlay Report elplente it machine visible format of eom-
consider:ng the size and complexity of the and Request for Reimbursement for Con- puter printouts in lieu of prescribed formats
particular project or program Reviver, the etruction Programs (subparagraph 4b). I Teder►l sponsoring agencies may pro-
teport shall not be required more frequently (2) Recipients shall be authorised to rub- Tide computer outputs to recipients when it
then quarterly or less frequently than an- mit requests for advances and reimDurse• will expedite or ooatribute to the accuracy
au►lly except as provided It subparagraph menu at least monthly when letters-of- of reporting
Sall) above A dna: report shall be required credit are hot used Federal aponaoriag a Federal sponsoring agencies are author-
at the completion of the agreement. agencies shall not require the submission of g3ed to reproduce these fora, The forma for
(4) Federal sponsoring agrr.cies then re- more than the original and two copies Of the reproduction purposes can be obtained from
quire recipients to submit the Financial Request for Advance or Reimbureeavent. the Oftce of Management and Budget.
—4—
iiD1IA1 IIGISTII. VOL ill. bap. 140--liDAT. JUIT 20. 1971
FINANCIAL STATUS REPORT i Ia""' .M......�w....a.Mr III w WORN"•..�..s'a w aa.w O.MOO.a.......a r I••
oft.seams
O.
Meow Off..ra....ar.a M.W/ ..
a.a.Mw.ra..aa.•.aN.w...r..rrra...•wn0=a.. a a..M•_1ao.1'r..w.aNa..•...a a a.0.alwata.4/.a.raMIaaOl.a..•..•.`."a mat 111114101 11.aar.
Q'. 0• p aim p.sewa
La •aa...'laaw iifi.a la..••.+..• a rani...a.ra w 1..4I
mod Walk v—. w.ar.a.Am..... .ON WWI all r. N•Nook.am r,
1:
la *nova MINIS
rho, f•1 IN 'L1 ff./ III 19r1111.
MOOMMt/r1M•e710•ellIA MA1ft0 O. I
w1..S. ow F••a••••llf w..•01 i II $ $ I $ $
a.
b. ro..1.1.••.A Me.'...1 WIMP _
aS. Lem.•.w.....ar...wean .
P• II. u••
. No. .'......•...r1 wad
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0 a N.....••'.»i...
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L tow e._-.l.M»..l..A 0 ream/w.... 1
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ir as. Y.t•r .Wow ra.o.1 arr.
. •'r'r r•. it..w.ae.••.a N1.101IV Or MffMONatP Cf1fIRM OOvw^.KffOU'
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•
•NOTICES eantucnotes
Psa's•typo or CAM bwt)D►i,Items 1,2.t.•.7.9.10d.102.201.201.101.11s.we 12 sin sta►(a+mten•t•7e
10•cl(tc rtflnrctionl to ocher Itpna in ad to wevs:
Am Moir Am NO,
4 CAW Mr r pepow ••e•'Macatr'erewf/adpq. w SOF VOW es aeawrmo K r dawn.* Mew WIWI r
We U d dam'Irwmw lows r MICt Welladwaq wit p^wt that I Madan In e►. Loris •nl ere
w ield r rtq.dso to tb relays'haseal afore/ Man N IN peed,'are%ts l lefteo'rr Wee NW
prow. wee /r Fawns rood rwl r+ a IMP WWI.
deft, the sown✓air trsod. e•cdea•It Wald WI
• ,Ale sows I wHe.•f r r wdsved aaabr ill Ibis as poe,er pied no Wens Inland • we Ws/sal
.aoaterea woodman woe ars We ww,raw• tor M• Inn raw ter •weds •r ecnaw sine/ OM M•
• gwpeew. lowlands or the Fapon e{pp se M'e'te Ids wens dd
•ea{R.at •ben w'ee,ee Wow Is r swot r M•
• treed Ms wale day and per sit tar teeter Mel tole' loam seism M was W.two wow.p.srw
W4 4 0 M. Voice peb re,hanneAs anent Vert sow dessesenow r We Pe•w1r
Ip
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. .
10 tan {veleta s reolecir•ehar.01 tarssida to rep
"maw•rr.cr'l woo *r sirwa deer,'{.Madre.•w{ 10e [r+r Wes'raw*r,„esd•.+K•t1 WOetw side M
Wean M the f ode at d'os:•N s n IOW*p.n. pas om r paleee,Wawa.% oetesdaew olOwedrr
aela(l�1ey WY/ fe he,met•,si and an wend we w r se.brsefe� end wranetvt. Wnerdsl/wd•Wta.
alley e•CM.»' h as w wand sin/ h•rife ffia we sin
Waster u awn aR1* net M wear t Pewee?,ra
w's N sr►Far ems Arend++r deed.41•MvO b C••►Iw+r—soW.ptrs rorofd MR lab NM
see.-M esionn(a„sir Far Itrn pads row• ssonsoe
loos our • awn! Grab" tr NW"' DrwsAt Ilarewt w enfrtVFa We►--O•+rrews WWII( M
A l rentl p,a•eea• ta•t 4 MR moos • brasso Mr aka ►e MRl•7 has Pet fse nowellt.
iv .rue sir •cr'.eh tyt t S.V Pp. less Ynra, draw
{reds,swide.ns(•)lower(.,tM tale•We prswde1. spa not PKa44•Fat IMPIPent WO Ws Iwo bsoblesd
Ir anent r ores ass stress asnoma% WnteenPt •*Sens•Mewed•I (Y'h ten'rup/.M I News)
wan'pee I,14,1"A eNn ro r man p,tner wwtw be.I M leers.
• over as, ►no 4a.e 117 forte. r WWII,. r a
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aw se t r•ter ad ese wove .%wens"Om a•er• M Vs{rtlrves blswe Ms•new wed•we red I Obi.
sail Nativesp r donnas were an Aense/ lbw
fawn' for "s pioi a owns lam, Ar alto
•etr.en to A,net.r Wasd open rest A w. /•Mel 101 tAtr Vie wed r Ms renwent Pewee we was t sip/1
a ambre1a► el. of err rose de a fen'Far Fagan'WWI rot drew a•'
10. lava Ms M wefts tale sawn'Wolf be Mr Wm*
IS Ids awe" es waist M Ledo lee V ten dew weer :Cm IMP tlee rMDr,rshad Wiwi M PORN bads tM
R We,Mt bode se••w•larm to too a'.ye.de tarn •ewaa.*&Awl(we is flpew s={waned We 1•Pan l
ps..o..set,anon twit{sipdos att'v' taros Ow r Oa
le ter 'maw. 11/ toss psis w dMtt WWI be moot%.WW1.
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11,0,01 and use •awes M w►% wen awn pad Ile Lair swab•led Nam!WTI deviled frrltr OS
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moppets raping•e I.Kca.wf.spdedases beta.M11•
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ase
Ion sin ter see a' *rive.'w taw dawned
Ms as tIwneed eeetw0 a room' sowed* ~en Iwo
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•
91DIIAL tIGISTIt, VOL. 41, NO. 114— ItIDAT. MT 30, 1976
-6-
NOTICES .
A►pnwd Aars.O V Management e.. Sedge+. 1.e 110-Ro112
FEDERAL CASH TRANSACTIONS REPORT 1. - &limn MI srPo' "e 00'011 6
%.46 SG Mort
(.fee tt.structi.+u in, A. bock. If report is for 911Or4 than sea rant or
oarietonte agrde+ne*t,attach completed Standard Term t71-A.)
4, sr Mr MoUfia L be•irt++'i gamest we" to
_, RECIPIENT ORGANIZATION onsu'esit `
ta
O. tare'e1 melt re• 7. teat.arm wean swim
Mte +
Give total stu*16er for this period r
end MaUeee a a. hint tidte+ eetnts •i a. Yrsa�f d.-Y.'mow( oRikaiaer
pm .seep( r RN V pw.1d 1
10. PERIOD COVERED BY THIS REPORT
illDERAI O ` MOM (aL Aso.s.row) TO (avail,
tl, .e
II.
• IDENTIFIC►TIONNO.
a. Cash on hand beginning of reporting period
b. Letter of credit.rlthdrsrrak .
c. Treasury check payments
11. STATUS OF
FEDERAL d. Total receipts (Semi of linos b ands)
CASH a. Total cash available (Sum of lines sand d)
I. Gross disbursements
t Federalm
there of program Incoe
(See apedllc
iruUrnttiest
ea Ike
Ike bock) h. Net disbursements (Line f whin ire p)
I. Adjustments of prior periods ....
.
I. Cash on hand end of period —$
12. THE AMOUNT SHOWN 11. OTHER INFORMATION
ON LINE IIJ. ABOVE. is
REPRESENTS CASH RE• a. Interest income
QUIREMENTS FOR THE
ENSUING b Advances to subgrantees or subcontractors $
Dar
14. REMARKS (A tt.ocl addilional+Aeete of plain paper.if more space is?squired)
1S.
CERTIFICATION DATE REPORT SUBMITTED
' r SIGNATURE
t certify to the pest of my
knowledge and belief that AUTHORIZED
this report Is true In all rot-
Wets and that all disburse• CERTIFYING 1 iPED OR►RIMTED*Aug AND MLR
mints have been made lot
the purpose and conditions OFFICIAL (Ares CAW �,�..) ls.+e••4 ►
of the grant or agreement (Ares
THIS SPACE FOR AGENCY USE
STANDARD FORM tot t7-7e1
ST3401 EXHIBIT 2 STANDAR by O u N r(7-7te^'f'n.M a,eeaA
CIRCULAR NO.A.110
FEDILAI aSOISTEE. VOL. a1. NO. 14S-4tIDAY. ItAY 10. 1t74
NoncIs •
102:
INSTRUCTIONS
Please type or print legibly. Items 1. 2, 9, 9, 10, 11d, 11a, 11h, and 1S art self explanatory, specific
Instructions for other items art as follows:
•
hose /starry .le try hoe
3 Enter employer Identlfcation number esslgnsd by the empiopee's share of benefits If treated es a direct oelet
U.S. Internal Revenue Service or the FICE (rnatfvbon) interdepartmental charges for supplies and services,
fie- and the amount to which the recipient Is entitled for
. Indirect mots.
?F this rs port corers more than one rant or Other
agreement, leave items 4 end S blank and provide the lag Inter the Federal share of program tricorns that wee •
Information on Standard Form 272-4, Report of Fed• required to be used on the project or program by the
Oral Cash Transactions--Continued;otherwise; brrnu of the rent or&snowmen,.
4 Inter Federal grant number. agreement number, Or 111 Enter the ernount of an edjustments pertaining to prior •
other identifying numbers If requested by sponsoring periods effecting taw ending balance that have rot
agency been included In any lines stove Identify each grant or
agreement for which adjustment was made, and enter
This space reserved for en account number or ether en explanation for each adjustment under "Remarto."
Identifying number that may be assigned by the ea- Us*plain shaft of pew ifaddrtional apace is required.
Npient.
11) Enter the total amount of Federal cash on hand et the
4 Eater the titter of credo number that applies to this and of the reporting period.This amount should Include
report. If all advances veers made by Treasury chock, all funds on deposit, knprest funds, and undeposJad
•'eater "KA" for not applicable and leave Items 7 and a funds One e,lass lire h.paw or minus brie I). .
blank
12 Inter the estimated number of days until the cash On
7 Inter the voucher number of the test fetter.ofcredk hand,shown on line 111,trot be expended. If more than
payment voucher (Form TUS 5401) that wee crsdrtatd • three days cash regiremeats are on hand, provide an
to your account. explanation under "Remarks"es to why the drawl wn
was made prematurely,or other reasons for the excess
11a triter the tote'amount of Federal cash on hand it the cash. The requirement for the explanation does not
brining of the reporting period Including ell of the apply to prescheduled or automatic edvsrteal.
Federal funds on depose, Imprest funds, and undo
posited Treasury Nedra. 136 Inter the amount Of interest earned on se/venom Of
Federal kinds but riot remitted to the Federal agency.
11b Inter total amount of rodent funds received through If this Includes any amount earned and not remitted to
payment vouchers (Form TUS 5407) that wens trod. the Federal sponsoring agency for over S0 days.explain
Rid to your account during the reporting period. . under "Remarks." Do not report interest earned on
eats a races to States.
11t Inter the total amount of ill Federal funds received •
• during the reporting period through Treasury check*. 13b Inter amount of chinos to secondary recipients ter
whether or not deposited. rJJuded in kern 11k. •
11t Enter the tots, rodent ash disbunamenb, made• 14 In eddttion to providing explanations es required above,
Outing the reporting period, Including cash received girt addit one! explanation deemed necessary by the
as prog,m income. O sbursements as used hers also recipient and for Information required by the Federal •
include the amount of advances and payments less • sponsoring agency in compliance with governing lies-
- refunds to subcrantees or contractors, the inns lation. Use plain sheets of paper If additional apace Is
amount o' direct salaries and swages, Including the required.
•
a'TAMMDa /oM a 172 WAACeo 0414
• IRMAI SIGlstllt. VOL 411, NO. 111—JUDAY. JULY ae. 1976
FEDERAL CASH TRANSACTIONS REPORT 1 tpr"C '+ °I"°. 666"4...."1 ..o, w.
11l_t101u
CONT)NUATION 1. IIccM. itO•.SORiwc. rG!ti:• OKD DaGu.ZA•
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1101LAL SKIM!, VOL. 41, NO. 11111-JIIDAT, ART i0. 1976
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REOUEST FOR ADVANCE •'" "' 11
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. 1
10_
•
i2026 NOTICES
•
INSTRUCTIONS •
Pisi1•typo w wits isKib MIns 1.1.S.1.10.III;I1/.111.11g.11i.12 we 13 M trMespi/M/1s7
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mos
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wasinwa
arm tiwA••*•small! 111I•••• y am* •tt JIR ti • ••orp • W"A •1wv1 a .m••*
.a•a Wag w• gem Z,. S'a M '.a.•..•1 tr
Pr maysa PP.14 asaea•••1,••••awl gaspy
7••m•Ilra•L+I.a+•!/ 'n•wnor m a.•n ra o mesa 1•wr a awm asses.
�••'Ir•A 1A 1.1110041 4 1P4 •Ir • r .tall•00•44••a 4rm• • a lL•L
Walk M••L•aµar•1.4 a tpmm.w..-+' -,m•• r r I1••44 0.41/ ed 1.0 w•q - IYi aI .t,•
rd ~I%MAO 4 pw.yuelmrta 1•••N'a•'s'•1a •m•••am••evawawa O •a..•w all w% a NA, III'oftPa WO'mall r..••r+P 4 mama.minnt ' ••W'�••-a to wraps Amiga r
tu•a•u• '— ire a vs w r wawa w r w awi+ 11.41
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LI•ra• I M.rtua.•a m all agar r +a>'•• t1•4411 1•••••J y//Wavrwu lI•^••
mesa amps ti VIP 0I•301111 w as rt lit NeeMq 2!u aJ•`ma's a.•+.•1 r..•Im.I in•r
M pa aI••••••••r aerarar• roar°""•M.alga
•Lalia�•la••••I sa at P.rea•j•••••ma ,Amp a a.rOrP•'•'a•s
I• b•_1a Ia••J y • pygmy In. aa. wawa a4i' I a4•• s
all/144 rya p A•••.a•m4 a••••.••I I ages••••l•I'yr
y*ma led 11 •lama stares-••.ay I O T4 71aM•�
•A••rr•aw'a•Wmm•la + w/•$a Aim wave wail 'Warn
M aaaaar•m•• LLB a•t1•p• Waal ',Ada',Ada �] its ••1loll\wawa•Myj�1 Mrro.•II 4•••A
p aa•fA•r•/
• &ape us, '.4. wire
log"•wIwa11,
nlalan+lsul Wide 103a0"e,w•v**I yr'II'Ot'{'sill vow 4a>ast tla+a+••giA+R"++
sliouxouse
1331/O111 BZO C
NOTICES •
32029
Arrsasssnrr!f—Cannes tro.4-110 anticipated or ono a work watts to be pro- 1071,whet the recipient Meets W of the re-
duced than originaily projected p. p��pb 2. shwye,
sroxrraarxi axe SPORTING nsoaaass S. If any performaaa review sonduet.d iactprthoseito subparagraph la
pSarotesaxCS by the recipient Slaclaim the teed foe change $ The relmburaement by Treasury theca
1• T>dts attachment NU forth thee pros w
. !n the budget estimates la aerd►aet with method shall be the preferred
fe td method the durte for monitoring and reporting rearm the criteria established to Attachment i to nclpieat does Oct meet the requirement"
performance of recipients. this Circular the recipient shall submit a re- specified la subparagraphs Jib sad Sc above
S Steclptenta shall monitor the perform►oes quest for budget revtalon. At the option of the Plena,
�o
lender grants and other agreements and, t. The Pederai sponsoring agency aha11 ageny.thU
method may►iso be teed o y
Where appropriate. ensure that Woe ached• Shale OW welts Y frequently Y practicable 'obstruction agreement.or if the taa)or p e.
sales are being met. projected wort units by to: tton of the program to eccompltahed through
time periods are ►etrtg accomplished. and m Review progreo accomplishment sad Private market laaDciag or federal Musa,
Other perfory ioor goals are being achieved. m►nagement control eystems.mad and the Federal assistance soartrtutes a
Thu metes,earn be made for each program, b Provide such tteebnjeai assistance as minor ponces of the progr.m Brea the ee-
Ataetion,or activity of each agreement as oat may be required. tocbursement method Is timed. the Tactual
forth to the approved appliesUoa or award I Federal sponsoring tenet's shallSubout !Monson of 6416e7 shall ale Parietal
doe unseat. proposed technical and performance ropers wit-MO Writ days attar rtoeipt u tbs billing.
i. Sxipieat mt11 submit a performance to the OQlee of lietnagemeat and Sudget for Walter the billing Is improper.
trwpnrt (techoleal ripen/ for etch agreement aPProval to boo:rd►tor with the report clear, i When the lettr•of-credit procedure S
that brolly prams the foliewlag taforms. once »quirtmints of oa Circular Ito.A-40 Used. the recipient shall be Mewed sane een-
tioa for wsch program. functiet, er activity Y eevmed. soildated letter-of-credit wbeaeyer paeilble
logWyrd as prescribed by the Federal Spot- AresCxwo tI.—j?ae rttoNo.A-110 L wirer antt ripe tad Goa beede for ail grants
sating agency: and ether agreements awarded by the apoa-
S A comparison of actual aecomp)isbmaat sayaclorr sstavn.sacl goring agency Likewise, to the stunt pool-
Mitts the goals esubiithed for the period,the TDu sttaetsaent 'wtaattahes the w• bole, ohea the advance by Treasury cheek
•seings of the Investigator, or both. If the qulesel methods of:risking ► meat'b reel Method 11 veep. for eves should d euer
Output of programs of projects can be readily Pala Tl'heae methods wulminiatize the Urns
aolldated (pooled) for W grant tad
quantified, such quantitative data should ainiel ig betweta the dieburaemeat Lem Krsemeats ado y the s baarla� s1eae,
es
y p'o t7
be related to cost Sets for ooc putatloa of ncipiente and the transfer of fuON the
e . that eel Pent.
unit eta. tinned States Treasury to these recipient t rules' etherwl►e required by taw.
b.1<tareoa IOU y Yta goa
ls als wen Set •both m
er sueb di/bursetnt occurs prior to oral sponsoringah
agencies a11 sot vithbetelboid
Mt or subsequent to the transfer of !ulnas. payments for proper charges made by see row
whet Other pertinent
t foots tau aoo loclaaa og, g payment, coo be made to reetpieaL ante at any Ume during the project at pro.
appropriate. 7 sP through • Litter-of.erwdlt, an advance b new �ri0d unless (a) ♦Usti
has !stied
of cosi overruns or Digh unit test. y to eomD17 with the program obrtttives.award
4 eve t Y provided i s as. b below, Treasury check,or a etImbursement by Treat- *enditloas, Y Tedenl reporting "move.
►ad to subparagraph l in Attachment O. turf Cheek The followlag definitions apply meats Y (b) the recipient le indebted b for the purpere of tits attachment:
recipients "ball submit the performance or a Letter-o -C►edtf—A letter-of-credit Is the Dotted States and collection of the is-
glee sodtechnica threports e ha�nefal0era Stet Iicriog agen coy••
Oh instrument seac
certified by an authorid efe• �tbtuhee objectiveswilloorl apptroject-0el 'r ram
aria{the same period In the frequency"stab- Me nal of s Federal sponsoring agency that au- sponsored by the Dated iutsf.
lashed by Attachment 0 of this Circular end, thorlus a retipttnt to drew luada when Under turbo eondlttons, the aponaorta[
wDe» approprute, s f teie Circular
or.., per- heeded from the Treasury, through a rod- agency may. upon reason►Dle notlai teems
where ep »pen after foil lartitioa the vita Iteu»e bent and the recipient's eve- the recipient that psyrnrnts will sot be made
• project ea a •dote spectfitd pf the rederal i'erctal kink. to aceord►oce with the preys- for ob11g►tton& incurred after a specified date
sponsoring agente The federalsponsoringMom of Treasury Circular Po 109g. Y w- +ntt1 the conditions are corrected or the to.
nsona elMS.
agency
Le►ll prescribe
ct meet frequency
will M with
b !d`»ner by !Niamey et.ek—As bd.
1tu VW ese L Lit Federal Myeraarteet Is
reports 'soot by Treasury check Is a payment made
tented with the request for adeante or rile- by a Treasury check to a recipient upon Its Ar►sexasirxs .1.-Carvua No. A-110
burseruent when that form Is used In lieu rtqunt ►erore ovUafe are nibs by the
*10 athe
Pittfor p►al S at us ftD lov perfor.3 a recipient. of through the um of predator-
ended
v nsaxe�tat. Raw'
endedtfahail not gr required hbe more frequently mined piyaient schedules. 1. This attachment aria forth salters and
reporrein quarterlyillobe
feu frequently than an- e. At,,rbrrar+nrat by T►ts.rury catek—A procedures to be followed by Federal spon-
q 7 refaibursemeat by Treasury cheek is a Trey. manta ►grncks in requiring recipients to re-
sually Federal Sponsoring Gee"/es lest" try check paid toe recipient upon request port devtatione from final:nal plane sod le
Valve the requirement for recipients to sub- for reimbursement from the ieciptat. request approvals for toilette! plea w-
Mit performance reports with the financial $ tscept for construction grant sad Visions.
reports under the following circumstances: other eonetrucuon agreementa for which op. I The Ininrisl pica Is the financial in •
-
whet the recipient a required to sub- clonal payment methods are authorised. ae preisioa of the project or program Y sp-
ent a performance report with a s0atlaua- deecnbed la paragraph t,the letter-ef-er'dlt proved during the application and'sr award
Moo or renewal applseatioa. method shall be used by Federal sponsoring process It may Include either the Federal sad
b. Whet the Federal sponsoring agency de- *Lynches if all of the following cantA lone nob-Federal short.or Daly the Federal share.
{ermines that ea•alte technical Inspections oust: depending upon sponsoring agency require-
and c,rufttd completion data Will be sum. a 1f there Is or will be a continuing rola- menu 1t should be related to performasee
Oral to evaluate construction propels. ttonship between a recipient and a Federal for profram evaluation purposes whenever
C. When the Federal eportaoring agency"• sponsoring agency for at Put a 12•month spproprlete and required by the Fedora!
quests annual financial reports at a dual period and the total amount of advance pay- sponsoring agetey.
pear huts but It Y oecular7 to get annual ment.♦specud to be received within that psi- i ror boncor,struellot awards. reclpitate
armrest reports on a calendar year bum clod from the Federal sponsoring agency u Shall immediately request approvals from
$ Setwtrn the required perform►nia re- 42$0.DOC or more. as prescribed by Treasury Federal tponaorinf agencies when there Si
porting dates, *vents may occur that have Circular No 3071 For Joint funded projects reon so pelkre that within
seu the testto►rethe
sea
llgnificaot Impact upon the project or pro- the Treasury has authorised $dollar claims daisas a reeleroa will beaaary
gran In such Instances, the recipient shall of$120.000. following reaaOY:
!afore the Federal sponsoring iv as b )tf the recipient has 'etahttahtd or dens- $ Change in the scope w the copes'',tar
as the following types of sondruotu become onstrstee to the Federal sponsoring agency the project or program
&zetrro � the willingness and ability to maintain pro- b The Seed tome addttloaal federal hod.
Problems, delays, or adverse conditions eedures tut rill minimise the time Maps. s The veneer or amaunu bud et ice
That rill materially affect the ability to at- rig between the transfer of funds and their t
LID program objectives. prevent the meet- disbursement by the recipient. emu
Indirect mots la absorb Increases I IIred
!rag of Urae schedules and koala.or preclude c. If the recipient's financial m►era event emiu or yin 'Ursa. If approval la r %tied
the attainment of project work units by es• scitem meta the standards for fund control byes the red pen sponsoring age re
tabltahed time periods This disclosure shall end accountability prescribed in Attachmentaccordant,7e withfturu as require approval to
be accompanied bye statement of the action r to this Circular. "Standards for Financial Cd uuins i 7tsor ^Cost in ether
Lien.St contemplated.and anyFederal Y• for Ldurstional Inequire ►" Par all ether
P J►f►n►pmtnt t7stetas.' awards. approval requirement for ether
aistanee seeded to resolve the CCtusUon. 4 The method of advancing funds by item'of expenditures may be Imposed If they
b ravorsble development/ or event that Treasury the:k shall be used. in accordance are consistent with thou* 1n rtiC t34. Po
enable time schedules to be met sooan than with the provisions of Treasury Circular No. Other requirements for specific ilama may be
PSDEIAL SIGI$Ttt, VOL Al. NO. 14t.—FlIDAY. ANT 30, 1,FS
12030 NOTICES
Imposed salsa a d►elanos Has Was ap- a C1e.aactr-This ata.oet Of s grant st< the pant w ether scr em.at sad renal•
roved by the Omos of his:ecth-Dt sad agroemaat me the promo by which a Poderai lion ma s Cando:de When that serumthe
budget. spume:ie.:4 agency Mtarmtnes that ail op- Paderal spoaaort ig Kent'y may, as naaoa-
e.Recipients pith to transfer funds allotted plicable admimiltraUre articsaa sad ail A- sale scum le the recipient, ripen& the
tar Whin/ aJtowaaeaa (direct payments lo t;tursd work a1 the worm—rat asot bsaa gpaat a other &ems/ ett,and vlthbold fte-
brslhoesl le other categories of erpssrt, eampltted b7 the rwtlpila% and the reeiersl than payments, prohibit the rsclpleat from
d. Pose of the substaatI.e programmatic apoasotag weary. bcuntag add dotal ebli1atbaa at funds,
wort wader a riot Si other armament may b Dale of aeeleirtioa—Tar date of ®- goo&Lod erwrw il„we(Jon by tbb ratctpleat,tr
be su boon tine ed or traaif ah.d without prior plea= is Use date ca w D ich all wart under a&+c of e& a ter slaw maw aoeorde.n ee with
oDDrorwl at Lae PleSerwl o eeisamo$ aieere7• pabts sad etbc wre.ttsaee C eempirtArd arpars471015 4. The Ted ma: rpomaartat �y
nl
The preatal s do sot apply to the purr-Lam the
data as tbs sward electiment, Sr any daa31 slew dmi se eeem.7y sad peeper eau
of ntppUs• msertal• equlpmsat, w gstttaral 'suppletaeat w amendment thereto.we whfcb beat Use raGpteat could sot reasonably swat
to port aerytoma Federal spoil-oath la ands &guitar tbs period if ruepenaioa p►ovlded that
S. The Poderal Opomsortng weary May a Dtaa.'L ad sore.--Dt...Ilawwd carts are they meet the provtuoas is the sppibble
also,at Its option,r+wvtet tracafa:1 of funds teas clans to a pant w Woo aeretm.at Psderal wet pt-taetplar.
Snob/ direct scat aatrgor1ai for awards la that the Poi oral spoc+cai,at weary a tLb l t'sd.ral paaso►fag veranda shall
which the Federal tare morals I100,000 mprwa.&tsn't de tar me 10 be =allow- wide Isis ida rys4taatte attlem.at of,
the trtmuleUve aaaount if such tram- able, th accord-sacs with the applicable Pad-
fan esereda o► la stye led to tamed deo oral tort pr1ocipto or other amditioas see- s!°'t+d gratis or other apes.ments caskaid-
pa
cat'd the total budget nit that approved lathes:la the•t-assists. lag thetollawtag:
tithe sponsoring •peaty The same criteria I.All Ptder.l ap:necrtai a{'eDetea'ball sea- a Tersttutbn for swv.ee—The Fadaral
• shall apply to the cumulative amount at lebUsb aceramut procclurs that foal tole tie 111Poa4c*113f weat7 may rseree the ngbt to
traaafen smosd programs, tuerLoma. sad foil owing?sou tre meals: tovmiasis toy gnat as fiber wog:zeal La
aou.lt►s vita budgeted separately for IA a. Cpc request, the Psdera opt tag tamde or to part it sway time before the data
award escort that the Prderat apmeceind Wary aba11 male prompt psymenC le a i eot:rpletio&•wbsoein It le betarmined that
agency •hall permit ao transfer that would recipient for allowable reimbursable sorts the Hargett Lee fa tlad le comply with the
ocradlUeeo of the .em.at. The F.den1
trSuse any fltderal wppropnauoa, se part under the grant Sr other lagreett►eat bdtag sgr
thereof. to be used foe purposes other than slued eats opoaaoring erred abi11 promptly minty the
Yoe Intended. b. Tb r tpi.at aban 8mmedia4ly nfwsd twcfplsot tS writing of the determination and
a. All other eL►a$ws le aoOooOatruttba any balance of uoobltgated (mearumb.r.d) the reasons for the taralasttoa, together
budgie, sae.pt for this changes &wabed mats that the reederal syomaorlog weary has with Lb. affective data PsymeaL mods so
L paragraph I. below. Co sot require sp• rd•aaced or paid sad that C sot autbarta.d recipients a recovers• by the Peder►l epoa•
prang. This tacluds the use of racipi.at to be retaiord by tbs redpisnt for sea la earths egvacw wader rants or other aree-
tuads to furtderaaa of program ohretivs other rate Si other igrsemeata. manta terminated foe muse 'hall be la ae•
ayes sad sac., the recipient mlaimum share a-This Twderal apoomulag ageocy shall e►- cardamom with the local tights sad liabilities
lacluded In the approved ►udget. lain frost the raoipieot wlIb.in a0 deader d the pa.rtls.
1. Pot sonstrucuon swards. rseipient days aturr the date d emplanes of Use b. Ter,rtfnattort for eorturaleare—TbePod-
Shall roqust prior spprovas promptly trom acme matt all /naatlal. parterenaaee. and aa•al apoa.tariag sgeae7 w reeipi.at may tas-
PadersJ spooaormg sgeaets for budget es- Meer rtporu requtrud as the eonditbs of the scants ramie sad othe&roem/ate to whole
slaloms wherever apsmeat.The agpixy may crust estrsalcma • fa part whet both parties agree that the
• Taw revision rsuits from rb►ags In wbsa nqustad by the ndpient• eontinuaUoa of the preyed would not pro-
the mope or the obyecuve of Lb. propel ar d wean sutoriord by the grant at Other duce btaetdaJ result& eoma+easunto With
p►ogrem. sae agreement, the Piderel Memo:rlog areas, the further orpeaditure of funds The two
b. The revision taaesaa the budget anal mate s emttJemeat ice why upward Or pause shall agree spot the termination aon-
aasouDts of rodent foods bolded to eem- dowowarb led1ualaeets to the Pvdcr%J aware dtltbna 'Deluding Use affective data sad. to
pima the gtro}ect. of sD.L Wier thew report are rearlood. Use wee of partial tarminatlona,tee portion
S Wbea $ Federal ap000rtrtg area:, e.The recipient absU sceount fa way psetp- to be terminated The recipient shall Sot
macs ea award that provide support for grisly erquuod wits resent fuada sr re- thewsew obtigstlomo for the terminated pdr-
- both construction and Doaconstrucuon wont. steed from the OO•Qamtat tb aeerv*daaae here after the affective date, and shall swa-
ths Federal sponaarlo$ ageocy may re;utre wltb the proellon. of AttaclIcpeat P le this
pra-
the recipient to request prior approval from Circular. Property afa:agvmeat ftar+darda. tall s They a oral ep s:g obit' agency
as hall
the Federal apoosoriag agency before mating S. 1e the ',eat a Iasi audit boa sot been sill• The AEenl epoaaorlcl lace i asap
rform.d a le the ciroaout d tee cat allow full credit s Lae recipient ice she
any food or budget tnnafmn Mtwwa Ue Ira ►r1 le1 Fsder►7 'bare of La. boaeaaallSble ODltga-
two tapes of work supported. sr other agreetent, the PeEcral spoaaortsg atom properly Incurred by the recipient pram
0 For both construction and aoawastrue- wary &ball rew a tievm
o the rtgbt le recover tlDatrly
Loa awards. Federal eporssorlag agencies approprist amount after fully eoosidertag
Shall require rerlpi.nte to Dotity tea Pee- the rice .aeodsuoaasb disallowed oar re- Arum scary lg—Carp el WO.A-110
oral spsnaor rig egeocy promptly whenever wtilttag from twat tlaal'valt-
Lbe amount of Frdrnl sutborlaed Naas Is 4. Ifuspeaeion and tarmlaatoa procedures illfs.nsatn roan Pali arraTais gas
tapered to exceed the Seeds of the riclpteat are so:Lazed to Atuchmest L to Lab Cis- FWD Out assasTarro
by more that 45.000 or Eve persat of the 'velar. I. Thin attachment promulgates a stand-
Federal sward, whichever a greater TWA and form ST t24) to be wave by public and
aoca:tot will Dot be required U applies- vsaalfo.A-110
ta Pri.ate Institutions Of higher education.
Lone for eddluonal fundlag see submitted Oerwvrasoe ems r m:ear:on raccsammas publtt and private hospitals&ad steer quail-
for aoatinuing pang public and private oonprodt organisations as
10 When requeevng approval for budget I.This attachment prwacribs uniform a face Sheet for apielies ions alma applying
revision. recipients shall use the budget auspeosloa Log terstostioi procedures for to Ftder►i rats under „rem covered
farms that were used La the applicsuon Federal gratis sad other ape.meots with
Italica a letter request will 'ulna. s_ lest& by Part I,addition.
ageent A. s0 are
Ctarticurcuto ltl
'•� ♦-f3 ID addltioa. agencies are particularly
11 Within 30 calendar days from the data la The tal3oetag d.tiltlona *ha apply eamunged so &Lund the use of IF u/ to
Of receipt of the request foe budget rsyi• Su the purpose is this sttacbsest: season programs with State and local goy-
stan$. T.den1 Sponsoring s1vncie Shall re- a, TeArwatbw—The tsrminatios cif a wraments where this form la how required by
Wise the request and notify Lae recipient rail s steer agreement seats the ma- PldC 76-7.
Whether the budget nvLloaa have been ap• slistpe of Feder& apoevorsbip.la whole sr S The ST 424 may also be used.in as
pro•ed If th. reelalon C edit wader eon- In (mot, mender se agreement at nay time tboal blew, to tvIE:1 tLt requtrerr•.ots of
indention at the end of 30 calendar dam prior so the date of eomptetio&. 01.13 Circular A-IS for a contrition of ta•
Use Federal sponsortag agency shall Inform b. itairruba—The ruspemaba of a grant lent. from applicant to clearinghouses. that
taut.recipient fa s?IUSg of the data when the or other agreement to as atttiob by s Twderei Federal assistance will be applied for. Local
meoplest ssay 'apart the dectrJOD sponaortng •teary that temporarily sus- or State cleninghouse procedures till cover&
Artaassamt L-Cmcwt+us NO. A-Ite }ends Federal ipooa:rsblp wader the real Lae use et the form for thus ►urposs
CO other wgreeptest. psadlog corrective Sr. S. The etend►rd form WIII also be toed by
Os=OV11 Paornovan ties by the recipe.% w peodtag a decision leaders: sgene4l to report to the el.►rinl•
I This attachment preetriCea uniform to eradiate Lhm grant or ether srsemeat bauble set moor aeUons taken an appllca•
Closeout procedurea for Federal riots and by the redersi apcnsoeiod jersey. Loos reviewed by clearinghouses In accord•
Other agreements witb recipe/no n p All Federal aporseortog &Let/clee shall ante /with OMB Circular A-IS,and to aottlf
I The folloatng dranittoru shall apply for provide procedure. So be followed wbei a hates of granta•tn•aid .warded to accord'
the purpose of this ►tzar►asest: recipleot has failed to simply with the terms sac*With Treasury Cucuta;1013
•
OiDLLAt MGI1;1t, VOL. 11, CC. 14I--1 I0A7• *1? 30, 8878
•
_15-
•
•
• gag '01 LW 'AV0I1/—$OI ON 'lP 1041 '11111PN 1tiloi/ • '
N.s.1•I4.1 remors•Ar:•+f•11'f0 ry C ' -J
I/1.O1l t 30,4 t1/ 114•0.1 CrvCrlas T
w0tlrr iw
owe Wei•.a••Iw i 13N1911 111111C11
Vie wsriorn/...../t1. VP,Amp,11�0 1 wild•.r..•A w•a•s/•w r Walt N pimp.
sariissue t &mem Than • Ott:ow eTm'• •1imP •4.4 1st•s•A.•I•• to '•.re logs 1•.t1• es • 111
.Ma sea 0 r 'or / " 1 etwi0wlli •Q
WI •1Na0 • MLM I'1 0 I
COMMt1Ii1/WIr'1t Oa' lYJQ1 l 11tt►Or11q I
fK 'Mlaav' OW UM• so somas i 0 1
l..A•w .0,iq•t /•• meet) 40111 alA•11 VN • f1107t10 1 0
sap imam —z X ttti0JNl 1vN01L100t tot Lzt1M03 it
Si0MLL i•O11,• Si N Lora ra NOIL •tl 10 / ' "Amu • 070rtN'•al
ay twee •••4 1 M 1 •s0 A a'1 I ONIONAI it N111tt r0t17V 'It I
1•04,114111A01
•
Lora, 1vi1C1I 11t • !MOO,'tiI
04011Y71/1114 101 Limo 1tMOt aYltMvL i0 aNOILt711rrt 1try1011 1t 77ti/0 1Atav711$tNi$Ot'a
Si 07AN71o�I&
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22032 NOTICES
IM:CT101( rfAR iARK1 (tl.ar.n f rrrrw 1Ao roof Item mawjrr frru S.ctime l.1!for 111,if g Eus}ir)
•
•
STANDARD FORM 424 PAGE 2 (10-75)
/IDIUt IIOISTIL VOL. 41, NO. 14S—IIIDAT. MT i0, I07
-17-
NOTICES
GENERAL DISTRUCTiONS
This is a multipurpose standard form. First, it will be used by,applicants as a required facesheet for pro-
'
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•ln•aid.awarded In accordance with Treasury Circular 108Z. Fourth, It may be used, on an
optional basis,as a notification of intent from applicants to ciearinghouses,as an early initial notice that Federal
assistance is to be applied for (clearinghouse prxadurrs Will Ipsisftl).
APPUCAKT PROCEDURES FOR SECTION
Applicant grail oomph" at Items In Section L Kan Ram is not sppGobie,seta MA".K add►tional spec le needed,Inert
en asterjok"a".and vie the "merle section on the be of the form.Ail ecpianstion follows for sad+tent:
awe " awe
1. Mart appropriate box. Pre poliotion and applkaa O. keurenc . Srrr expenatiory.
ton guidance le in rwc 74-7 and Federal &gongs L Other. Explain on rertrarkt►e/s.
Program Instructions. tiot!fk.abon of Intent timid.
once 4 In Circular procedures from dear. 10. Cov*rnmvrtal unit where significant and meenlng-
inghouse. Applicant will not Ube "Repoli of Fede'aI ful Impact could be observed. List wiry largest unit
Action"tiros. or units affsCed, such as St:ta, county, or city. If
2a. Applicant's own control number, 11 desire/ emir*unit sReu�sd,fist It rather than weurMos.
b. Dots Section Is prepare . 11. Estifrom►p�tNmbar of persons directly tDerrlrfltirtg
Is. Number ass/red by State ciesringhouaa,or M deli lit Use cep rcicelats code letter.DsRnitioraa era
getet by hats, by sraawld, clearing iovsa Ace
guests to IsCarat agencies mutt contain tt+i Mardi- A. Kw. A submittal for the grit time for a raw
II if the orog'im Is C v,r*d by Circular A-OS and Pr
required by applicable State/araawtde deartrlt I. Renewal.An p,-lion for an addltior a!twang/
house p+stadur s. if I doubt, conauR your deer-
irrahovaa. Widget period for a project having no protected
compv'Jon data, but for rt+lc1 federal support
lb. data app!kant noURed of dosringhous4 IdenClhr. must be w.e.ed o.d peter.
4a-r4h. Lagsl name of applicant/recipient, name of primary C. Revision. A mica ritcstion to protect nature p
orgeniiational vnk wtich will undertake the meet whith mars "ea in funding change (w*
anal activity, complete address of appricant, she Create or decrease).
name and telephone number of person who can pew D. Continuation.n. Age extension for an additional
wide further information about this request. funding/budge! period fora protect the agency
l Employer Id,ntlfication number of applicant es ` init:ary agsed to fund for a definite number of
signed by Internal Revenue SerNa. m.
Use Catalog of Faders, Domestic Assistance Puna C A+ajTT*rta ion• A requtrsm4nt for additional
bee assigned to program tinder which assistance la funds for • protect pnvtousy winded funds In
requested. M mon than one program (04, joint- the
sal a f"^d'ngJDudset period. Project listen*
funding) vote "multiple"' and esplain In "marls. and scope uncharted.
M unknown,cite Public Law or U./ Coda u. Amount requested or to to contributed during the
fib. Program 17tie from Federal Catalog. ADbrsvlsb M fret funding/budgie period by each contAtnRor.
Vitus of In-Rind contributions will be Included. If^weary
the action I a clung, In dollar amount of an abet-
• Snot title and appropriate description of pnstect trig grant (a revision or augmentation). indicate
For motif .ation of intent continue In remarks sea only the amount of the change For decreases en•
Von if necessary to convey proper description. close the amount In parentheses. If both basic and
aupoiemtntat amounts are Included, breakout In
a. Mostly MN•erptanatory."City-Includes town,town- 'smarts. For multiple program funding, vse totals
Ship or other municipality. and show program bruIovts in remarks Item defi-
nitions: I3a, amount requested from federal Gov.
Cheekt
d eipnl of the farms era arnmerrt; 13b, amount applicant will cogtributs:
I1c, amount Moor State, ff applicant is rot a State.
A. Basic Grant. An original request for faders! 13d. amount from local government if apDticant fa
funds. This would not include arty contribution not a iocst government 13e,amount from any other
provided under r supplemental grant sources, explain in remarks.
B. Supplemental Grunt. A request to krcrsae a 144. let'asptanotory.
basic grant In certain cases when the eligible
applicant cannot supply the required matcAktg 1db. The distrtct(s) reeler* most of actual wort will be
share of the basic Federal program (e.g., rants occOmplishad. if city,wide or State-rride, covering
awarded by the Appalachian Natrona, Commie- a,averat distncta. *rite -citywide"Sr "Stattwida"
lion to provide the applicant• matching share). 1a Complete only for revisions (Rem 12c),Or auglnae*
C. Loan.Batt saplanatery. tertions (Kam 12a).
1TANDA1tD FORM 421 PAGE 3 (10-7S)
f1DttAt t1G11Tat, vat. 41. NO. 141-.11DAY. /Ylt )S. t•!a
IS Few i ride
•
1 Morn Mom •
31. Apprvalmate date Praise s:pected to bear(vwsy 111. hitting federal Idennoetfon number if this N not
resa dated with estimated date of availability of a new request and direct1' filetas to a review
funding). federal action.Ceherefse write 94A".
17. Estimated number of months to ow p+ete project W. indicate ►adept agency to which this req.raat N
after Federal funds ars araJiabis. addreaaed. street addreaa ►sot required, but Is w
31. Eat mated Bate p.m pgneatlon/app ion erg be D/.
submrtted to Federal agency if this project requires 21. Chad appropMte box as to whether Section N d
dsa tnghovse review. if review not required, Mk form contains remote and/et additional smarts
date would nullity be earns as date In Ram 2b. are atZacIi .
•
APPLICANT PROCEDURES FOR SECTION M
Appncanb trot alleys complete Items 23a, 23b, end tic. if dsarIngthouo review is required, Nam Ell mutt be Putty coat-
-gifted.An explanation folion for tech Bern:
~n Mark
12R. fist el Iringhoruses to ookh subenItad and show lab. UM arpisnotary.
In •pprcprtate blocks the etrtus of their responses.
►or more than throe ciesrtnese)uses, continue lot
remarks section. Nt written comments submitted SU. gaff aytans ory.
by or through cJearint houws must be attached.
23a. Name and title of aut/sortsed rep+esentstive of beat Mae: Apprtcant oorrrpletes only Sections I and It. Section
applicant. III le conspired by Faders!agencies.
FEDERAL AGENCY PROCEDURES FOR SECTION NI
If applicant-supplied Information In Sections i and iI needs no updating or adjustment to St the final Federal action.the
►adept mercy wilt temptete Section HI only.An explerietiork for etch Ran Wore
Mane Man
!f. Executive department or Independent agency?sentry 35. Marne and telephone no. of agency person who en
program edministreiion responaibilit. provide more Information regarding this sdetanes.
35. Self explanatory. SS. Date after which funds tete no longer be enlist*.
IL Primary organlreVonal unit below department Level 37. Check appropriate bar se to whether Section N of
having direct progrsm management nepori&bWtr. form contains Federal remarks and/or attachment
27. Oftfca directly monitartng the program. ref additional remark
XL Use to Identify non•awerd actions where ►ad+rsl at. For vas with A-9S action notices only. Manes and
rent identifier in Rem 30 is not applicable or arse telephone of person who an assure that app+oprl
not softies. eta A-IS action has been taken—If same as person
shorn In kern 35,antte "same". if not appliabls,
33• Complete eddraw of adminietarlrsg office shorn in srrtta "IPA".
item 21.
20. Use to identify sward ►cttons when different horn Federal Agency Procedures—specie! considerations
Federal application identifier In Item 21, A. Treasury Circular ID&2 compliiancs. Fellers! agency wen
Si. Self explanatory. Use remarta section to ampiiy assure proper completion of Sections I and III.If Section I
when appropriate. b being completed by Federal agency,an applicable Items
SL Amount to be contributed during the first funding/ must be flied In. Addresses of State Information Reosp-
bud budgetperiod ton Agencies (SCIRA's)are provided by Treasury Noerl•
t by each contributor.Value of In Idnd ment to each agency.This form replaces SF 240, which
contributions will be included. If the action N a • win no longer be need.
• change in dollar amount of an eaistiri grant(a revi-
sion or augmentation), indicate only the amount of S. ONE Circular A-9S compliance. federal agency w ll sr
change. For decreesas, enclose the amount In pe• sure proper completion of Sections 1,II,and III.This form
?entree's. If both basic and supplemental amounts N required for notifying art reviwrng eiseninghouses art
are included, breakout in remarks. For muiipie pro- major actions on en prog ems reviewed under A-IS.
gram funding, use totals and show program brisk. Addresses of State and areawlde clearinghouses ere pro-
outs in remarks item definitions: 32., amount sided by OMB to each agency. Substantive differences
awarded by Federal Government 32b, animist op- between applicant's request and/or clearinghouse recorm-
plicant will contribute, 32c, amount from State, if mendations, and the project as finally awarded will M
applicant Is not a State; 32d, amount from bell explained in A-IS notifications*clearinghouses.
government if applicant Is not a local government C. Special note. In most, but not at States, the A-9S Sete
32e. amount from any other sources, explain ins clearinghouse and the (TC IOW) SCIRA ere the same
remarks. Office. In such cases,the A-95 award notice to the State
S3• Date action was taken on this request Westinghouse will tutfitl the TC 1082 award notice re•
quirement to the State SCIItAI Duplicate notification
Sig. Date funds win become available. should be avoided.
STANDARD FORM 424 PAGE 4 (10-71)
•Ord Mai O•e1a•W ra-•O
rtottAt eiGIITte, VOL II. NO. 141-PSIDAT. JAY era, tree
•
—19—
NOTICES • 32035
• AreaeseareT le—Cairene No.A-110 b. The recipient shall obtain approval try Government is to a Used party seamed by
the Federal sponsoring every for the oar of the Peers! Government whet suet third
• raormire a4M•ccias rr ITONDAIa• real property In other projects libels the re- party to otherwise 'Orbit trader existing
I. Tb1. attachment prescribes natform elplent determines that the property Is Do ratites duct, re•ereettot shall be subject to
standards governing maaseirnent of prop- longer beefed for the purport of the anginal the following ete.odards:
erty lurafaheel by the Federal Government or project Vie Ib other projects shall be limited (I) The property shall be approprtatsly
where eel was eberged to a project sup- to there wader other federally rporeeted proj- editUlied la the grant o other agreement
ported by a federal past or other agreement. Kta (t.e,grant&or otter agreemeaul or pro- or otherwise made Lawn to the esclpleat
federal aponsortag agencies stall require re- rums that have purpoes consistent with IL writing.
eipient to obaervs these st&.ndarde under those authorised for support by the Federal (3) The Ferrel grponaorthe agency shall
grant lad otter agreements and &hail Dot 'peruser/rig agency. tame thsposeuen in&trucuona trtthtn 1p0 cal-
Impose additional requirement uaice fps- e. Wbea the real property to Do baser sadat days after the sad of the Peoria sup-
etscally required by Federal la•. The reelpi• Deeded u provided IL and b above, the port of the project far which it wu acquire
sat may use Its own property ma,:.agement recipient &Dall request dltpoouoa lustre- If the Enders:sponaortag agency falls to icon
et& dArds sad proeedurs provided it oboer+s UoD,r from the lifers! sponaorted arum or disposition Instruction within the 130 eel-
the provWoaa a! this attachment This at- 1u luecessor Federal sponsoring &genre. The ender day period, the recipient Shall apply
lath-meat also &pplle to subrecipteat as Federal sponsoring &gency shall ohaervt the the etenderde of rubparsgrapha lb sad k
referred to to paragraph / of the baste eta- following milers it the dtapca.luen Notre- as ►ppreert•ta.
solar. Now: 111 Widen the Peens/ sponsoring agency
1 The fcllowtg dersoitloai apply for the (1) The reciptaat easy be permitted to re- exercise Its nest to tate title. the personal
purpose 01 USX-attachment; lain title after It compenAsts the Federal peoperty shall lie rubject to the provisions
a ,+a! property—!teal property teethe Government in so amount computed by up- for federally-oe sed nennpeadAbI property
IsnA, {Deluding land im9rovemeDL. Wise- plying the Federal peraatage of pi:Volpe- gtacuaved to pe--seraph 4,ahon.
Slate and sppurienaace. thereto. but ex- Lon it the mat of the ort cal project to the (4) whet UUe le ter .osrirred either to the
eluding movshle machinery Nod equipment. fat market value et the property. Federal Ooverc=snt at to a third party the
pa. prrson,e7 property—Personal property (2) Tot recipient may be directed to sell prvvtbaaa of rubpursgnph Go(3)(b) should
of shy kind •rapt real property. It may be the property under tuldellaes pre:nded by be followed
tangible—bavIag physical existence,ortotae- the federal epoesoring ageesy sad pay the b. Vas of ether tatirtWe sonespewdeble
gible—ha•Ing to physical castanet,such as Federal dovernmett ac amount computed property j'a wrimm tot reetyiewl A•.. eery.
entente, ta•entbns and oaprlgbt. by applying the Federal parcattaer of per- (I) The recipient than use the property
t Ihrsrsptadeble personal propene—Mon- ticipetion to the con of the original project to the project or props= to obits it ens
•rpeadshle personal property meths tsag111s to the proceeds from We (after deducting arrquted u fang ae weeded. •better or sot
• personal property having a useful We at actual aid reasonable selling and 0a•up as- the project at program tomtinum to Os imp-
osers than one year and ei(Kgi)teition east penes, If any, from the Wee proceeds). ported by riders) funds. Rbso sic longer
of $300 or more pet unit hcept that Yelp- When the recipient Is authorised et required needed for the sertginal project or program.
bats subject to Cost Accounting fliandarda to sell the property. proper sale pm:orduree the recipient shall use the proper!, is eon.
lloud regytatbhe may use the CA!i stand- &ball be established that provide for m=peU- pee uoo lists Ile other federally sponsored
aril of $500 per unit and useful We of two Uoa to the uteat practicable sad malt to aeuviure. to the following order of prtartty:
pears A recipient may use IL owe defeltion the highest possible return. (a) Activities, ID the following viler of
of ooneependeble personal property provided (3) Tie recipient may be directed to truss- prtlsrrtty:
that the detrilUon would at least include all ter title to the property to the Federal Oov (hi AetivfUN epoaaoe.d by the some pod;-
tangible personal property u deLoed above. srnmeat provided that In gruel eases the es1 t.geaey•
d.rryr+t/sblt persona.1 roperry—1O pend• re:ipient shill be entitled to oompens►tloa (1) Stared nee—Airing the time that
able perwital property refers to all tangible computed by applying the recipient's per- Doneselnpt tootepeadebie personal proper-
persoaat property other thee totexpendahle tentage of psrticlpation fa the Dort of the ty is held for um of the project or props=
property. • program or project te the current fair=artet for which It was required, the recipient
O.ureic properly—Dees property means value of the propelte. shall mate It&reliable for use on other pro).
property under the control of any federal 4 tedrrsiy-0acrr.cd carte pe.1Csbk pa—soe 2 seta or programs tf such other urn will set
agency that, as determined by the bead properly—Title to federally-owned property Interfere with the wort on the project ew
thereof. b to longer required ter it Deeds remolds ♦sated in the Federal Government. program for which the property was cries.
or the dtatharge of its reepotsibilitW flecipiette &ball submit sexually an Leven- sally required. Pint preference for such
t. Acquisition cost of ptirchhief soxas- try listing of federally-owned property to other use
shall by the en to other
Fel pr jerta
eeenee
pm:tabie persona roper*—Acquisition cost their custody to the Federal sponsoring proses sponsored
of so gum of purchased aoaespendsble per- agency IIpoa conuptetioa of the weemebt Chet Onenced the property; mooed prefer-
eionai property means the net tavoiae unit or when the property te Do longer beetled, "nee shell be given to projects or programa
price of the property it:ludlag the Oast Of the recipient shall report the property to sponsored by other Federal &genets If the
modifications. attachment, accsuorts, or the Federal sponsoring agency to further property Is owned by the riders! Oovern-
suItiliery •ppar►tuu brcraaary t0 mate the agency uwlMtieL. meet, Yet of otter attivttin mot sponsored
property usable for the purport for which It Lt the Federal sponsoring &genre has DO by the Federal Ooveroarent shall be per-
ie required Other cbeees such as the cat further teed tot the property, it shall be ailssibie It authorised by the Federal agency.
of laitaliauon. transportation, tases, duty de:lered tsetse and reported to the General Veer charges should be considere% it appra-
ise protective ib-transit Iruuranes, then be Services Adrninietrtiot Appropriate dispod- prise.
Included or excluded from the unit acqulai- ten fnitruetlons will be leaved to the re- e. Dup shins of otter sorsesysesdable
Non cost It accordance with the r•clpientl eipient after completion •f the Federal proprris —When tbs recipient Do longer
regular ec outUng practice agency review. needs the property ea provided is lb ►Dove,
g. tiu*+p! property--Aeetpt property $ fu.+pl property—When statutory su- the property sere, be used for other scvli-
maarJ tangible persons.: property acquired ID thority •gist, (e g, FL. is-tie• t3 OA C. ties to accordance iota the following stand-
whole s► In part watt Federal fund... and 992) UUe to nenespetdable personal prop- arts:
title to which Y vested In the recipient with. arty acquired with project funds. stall be (1) Noserpe*debfe property wifk a watt
out further oblrgetion to the Federal Govern- vested to the recipient upon aequltLUon ten- acquintion tort of less then 31,000—The re-
sent except se provided In subparagraph Se less It.is determined that to do so fs Dot im cipient•nay use the property for other actfvl-
below Such unconditional vestee, al title furtherance of the objectives of the Federal Us without reircburseo+ent to the Federal
wtil be pursuant to say Fvders! legislation sponsoring agency When UUe is vested ID O:•ernmett or sell the property sod re-
tea: provides the Tederei sponsoring agency the recipient, the recipient shall have so Lin the prmveda.
with adequate authority. other oblieatlot or accountability to the (2) Wonerprndeble perseart property with
I Aesf property—Lath Federal sporsoring redeye! Oo•erntnent for ill use of dupoei• • yntf "Nutrition east of SIA00 or more—
agency shall prescribe requirements for re- Nen e_eept as provided to Ia below. The recipient may Welt the property tot
rip:rats coneernint the use and disposition d Ot:.er soncrprrtdablt property—When other uses provided that compensation b
of real property acquired partly or wholly other nonespendabie tangible personal prop- trade to the original Federal sponsoring
Ur.de- gents or other agreement. Onless erty is •:quired by a recipient with project agency or Its successor Tide amount of cos+-
otherwlse provided by statute. such require- funds, UUe shall riot be taken by the Ted- peosation shall be computed by apply'
ing
•men:&. as • minimum. shall rentals the eral Oovertvaeot but shall vest la the re- the percentage of Federal participation to
following. eipient subject to the following cond:Uons• the cost of the original project or program to
a Tails to real property shall vest to the • /tight to ireesfer title.- For Items of the current fair market value of the property
recipient subject to the condition that the nonespend►ide personal property having • If the recipient has no need for the property
t?c:p:ent Goal; use the reel property for the unit acquisition cost of $1,000 or more, the and the property he further use value the
authored purpose of the project.as long as Federal sponsoring agency ens) reserve the recipient shill requet duposlttoTt lnetruc-
et is needed right to transfer the UUe to the Federal lion from the original sponsoring agency.
/t01sAl i1GiITII VOL. 41, NO. 14l-/110AT, JULY 30. It7S
—20—
32036 NOTICES
v •
• M r staler ring weary shall doer- damage. et theft of the property. As7 tee, trade true selling out of procurements
property can be used to damage, or theft of boaexpeodable property enured Into, to support of a grant or other
Meet the egeney's requirements. 2! he re- shall be investigated and fully documented: agreement Tao Oxhide depute. claims,
gutremeat Malts rltaln that ogtoel, the If the property was ernet by the )odes] protests of sward,source evatuatiot er older
see11abilny of the property shall be rep.rt- Oovernmtnt,the reetplent shalt prompuy so. mature of a contractual satyrs Matters son•
M to the Oenrral ferries Administration Ur, the Peden] .ponsorlrtg agency AJe q.nsterntsg elolsUoe at law are to be refereed to
by the Federal agency to determine whether a (t) Are.4.MMy Matntenane, procedures mob local.tote or Federal authority a say
irequtrsment for the property saute it other shall be implemented to keep the property have proper)urettleyes.
Pederal ageods The Federal sponsoring ea own "on dittos. $ lbcipunu may use their own procure.
teary shall tow taatrueudna to the reclpt• (•) Where the recipient b svtacrtatd Sr Mont porkies and procedures Rowan,all w-
est be later than 130 day, after the ectpi• required to sell the property, proper sales edpleats shell adhere to the 'tinder de MS
ends nut sag the following procedures procedures shall be established which would forth it paragraphs!and d.
slid/1 govern: provide for rompetttlon to the grunt pried- ► The reclpleat shalt maintain a wade er
Is) u so lnstrurud er tt disposition la- eeble and mutt to the highest pctible re- s andarde of eoodect that shall !evert the
etrucilona are sot Isued witbth 130 "ales- turn performance of hi sl1Ies,. employes sir
dine d►ys atter the recipients request. the T. irpreeable personal property—Thus to agents engaged in the awarding and admts-
rsctptent Shall ell the property and elm- expendable personal property shall wart Is istnuoa of entracte using Peden.' fonds.
• burn the Peden] ep000erlag steno) as the recipient upon acquisition If there 1s a Ito employee.off cer or egret shall participate
• amount Computed by appleiOg to the Wee residual taveatory of such property mooedlag to the eleetloa, award or adalaiaUltion of
preceedi the percentage of federal partici- •1.000 is total agrees* fair market value. a sourest to which federal funds era used.
patio: to the met Of the orlglruil propel Si Upon termination or completion of the!Taut lama,to Du tOowledge,he Or his immediate
progr►m Nowtvet. the recipient shall So or other agreement, and the property b sot family,partners,or ortar.tsatioa In which he
s permitted to deduct and petals trots the Fed• seeded for any other federally epoaaored Si hL imenedtste family Or partner Ma a
Simi aksre COO De ten perreat Of the pro- project or program.the recipient abeU retain granola! interest or with short be Ia osier
seeds.whichever Is grhur,for the Mlplet%u the property for test on boafederally moot-. bating or has Lay arrangement concerning
silent ane handling ezpsnsrs. oared activities,Sr ell tt, but must to either prospective employment. The netpleats' of-
ib) If the rectpleo% b instructed to alp ease, compensate the Federal Ooveromest lean.employees or Keats shall Neither sego-
the property eleewher , the recipient shall for its tare. The amount of OomperuaUoa 21 or accept g etuities favor* or acythiog
be eimbured by the benelluag Federal shall be Computed la the same manner ae Of monetary value from contractors or petsa-
agency with an amount chic is computed aonezpendabie personal property. tlal contractors Such standards shall provide
by applying the percentage of the recipieoin •. 1stsa tole property. for dtactplltary actions to be applied for e s-
participstioo to the ecet of the original!rapt a,luornttoru end patent/—If any program lotions of ruck 'Lederds by the reciptess•
project or program to the current fate market produce" peuotable items, patent rights *Scent employee or agents.
Nw of the property, plus say reasonable procreate, or trisection'. to the "Ours. of b. AU procurement u-anaacUoas shall be
shipping r isurlm storage nests Inoured- work sponsored by the federal Oovertmeat. eioaducted to a moaner to provide, to she
It) IS the reclpleat ts tn1vueted to other• such fart shall be prompt),and fully report- aluilmum extent poetical. open mad trio
Whet dbpow of the property, the recipient ed to the federal sponsoring agesey Cafes competition The sapient should be alert
abaft be relmburaed by the federal sperhahe' then le a prior agreement between the re- to organisational con lily of interest or eaeo-
ing•spite, fee much cote lacurTed le Its coital and the Federal sponaertog agency eompettve practices among contract/we
dspoaluoa. on dispostttoa of such !teats, the Federal that may restrict at ellm:aau eort>petluoa/ Property btewafenuet shahs// Jar sponsoring agency shall determine whether or oeherwse rstrait trade In order %a NO.
nowcxpe+si.ble prepare—The recipient'. protection et the invention or discovery shall owe elective contractor performance sad
property msnagemeat etendards for soots* be sought The Federal epoivortrrg scum altminau unfair competitive advantage,oao-
rdible personal property shalt!Delude the will also determine bow the rights 1s the ter• tractors that develop or draft apecthcaUoaa,
owtcg procedural requirements: venUon or ducevery—Including rights under requlrarttnta, satemets of wort, tavtte-
II) Property records shall be relototaod any patent iwed thereon—shell be allocated tons for bids ►nd,r requarJ for prapmaia
meeursuly sad shall Isclude: Sod►dmitistered In order to protect the pub- should be secluded from enetpettag for Midi
(a) A ducnptIOo of the property. Ile Interest eonautett with •Oovertment uremeay. Awards eel) be made to the
(hi tda tufactttter'e serial cumber, Model Patent Policy' (President's 1Jrmoranduen bidder/otrror whose bid/offer is reeeoaalve
/ruck aYID"•
e"" *thy ram' Dum' for Leeds of )beeutiv, Departments sod to the ebcitatlon and is moat advaitageous
k. AteaNs. August IS, heel, and eteument of to the recipient,price►od other factors axe-
ftl Source of the property. leelvd Oovernmeat Patent Policy as printed Is Si steered Solicitations shall clearly eat fare)
at or other pJt 1SA) all rrgwremeats that the bidder eoffervr"tut
tars egrwemeatatember. b Copripkts—lbcept be etherwW pro- fulfill Is order for hit bid/offer to be evalu-
idl Whether title vista to the reeipleat r Piled In the terms and oondttioas of the sled by the recipkht.Any and all bide/ogees
the federal Government. agreement,the author or the recipient org►D• may be rejected whet it is it the rrdptest•s
(c) Acquleition date (r dats received, u nation le
free to copyright any books. pub- footrest to do SW
the property was turrushed ►y the Federal iirations, or other eopyrt Dtable materials s All recipients altall rt bltsh
oovernttentl and Mort. € D PTOOoce-
• (f) Percentage (St the and of the budget developed to the course a or under a red- merit procedures that provide for,at a IRIS-
pees) f participation steSod If thee bust of er*1 agreement, but the Federal sponsoring bourn,the following procedural requtt•rmsns
the profeFee program for which the proof agency shall reserve a royalty•free, rota• (1) �P d proc-ter ient ertion, shall
Why wu ecqutreo (Motor which
to prop- elusive and Irrevocable right to reproduce, follow a procedrrre to assure the avoids:] s
brit turntah,d by the Peelers' OoveTnneht 1 ether*to liah. sr otherwise
wort for Ooenest put- lutti Wh�eregapprop7 a n an►lysb linnecssniry esshall
(f t Locstton, us. and oonditiot of the
property sad the date the Information sae puma
made of lean end purchase, aluraabvr
to determine skir) would be the most
reset Areatrsrsv r O-�bevtas No.A-110 economical. practkal pron>remtnt
(h) Cott scquttltioa hart. paoevsasUrf Ratetrhas (!) $ lctla 1otY fr tooda mad reeler
iII Ultimate dispositloa data, tseluding .hall be based upon a clear and accurate
date of disposal and salts price or the method I.This sttaehroeat provides standards for dsrcrlptie: es the teav,nlcel requireDiaD*
weed to deterntwoe current fair market value use by recipients in etyblehtog procedures for the rrwterlal, product or NOT We to be
where a recipuet eompenaate the Federal for the procurement Of supplies,equipment, procured puck $ description shall sot• to
eponsorin(agency for its chars eontuuetlon and other services with Federal comp/tide procuremesrte. contain features
(I) Property owned by the Federal Ooe- funds These standards are neatened to On- which unduly restrict competition "brand
Srnment must be marked CO lndleate Ted- sun that such Materials and services are ob• name ce equal" descripttoru may be used
oral ownership tallied In an effective manner and to ooze- ea a meant to d.i oe the perro/inane* to
I!) A physical inventory of property shall planet with the provisions of applicable Pod- other cetera requireriens of a procurement.
be taken and the results tecooclled with the eral law and executive orders No additional and abet so used the specific features of the
property ►Korth& at least once every two procurement standards or►tqutrtmetts shall trame0 Draped ah1tA moat be meet by biddersI
pears Any differences Waver quantities de• be Imposed by the Federal sponsoring ages• OLe»re shill he clearly epeclfied.
rermined by the physical Inspection and cies upon recipients unless specifically re- lei reenter efforts shall be roade by the
those shown is the accounting records shall gutted b) ieder►l statute or executive orders racipieny to vtllire small business and o1-
be Invr,tigetd to determine the causes of I The standards contained in this attach- Dority-0sned business sources of supolio
the difference The seclpient shall,In eoanee• anent do hot relieve the recipient of the eon' and services Such u terra should ►110s thaw
amen tenet the lnveDlory,verify the ezlitenee, trattual relpOaaibilitiea arising uDder its sources the Maslmuni !risible Opportunity
Current Wlitaatt00, had eontlntled heed for contr►rta The recipient Is the responsible air• to compete for contracts utilizing federal
the peepers,. Shortly.without recourse to the Peeleral epos- tuo:ds
. id) A control ernes) shall be In effect to aerieg agency regarding the settlement and (Si The type of procuring instruments
teeters adequate safeguards to prevent Ices, satisfaction of all Ooatrattual and admins- teed, .g, died price contracts. Moat nlat-
MUM, •lOifTtt, VOL 41. NO 1411JIIDAr, NYlt 30, 1976
—21'—
NOTICES 32037
iv dslsari recta (>r G7><. Part /).. Otadei sec ton 10t1
•1ureebte eoatraets, pbe determined
orders, teem- the Lion rieet may be towairehe soy d the Act, each •oatraetor alai] be et-
reel.Yee too tracts. shall be determined by Lae as sell es conditions where the co°treot aM u t, each the warns every a-
term°ated bcauee d orrcutas� (tir d to tabour on the ages of a ate, ••
t particular le but must be appropriate foe tut btu the etnDot of the eaoteselor• wort dey d • !ours end • etof i et wart
ra
eatpr rest of t and for promoting To a err L- west to trues of oat
the bast Interest of the program !seabed. t. In all ve t+IV =oretar them ye" of 60 lours•Tine cont•Ccting shill
notce use at" meta- •j improec vement
shall oksree the bond• 'ton dud wort'ley or wortwsat b permledblt
td or eoatr►ects shall not d used. int re00• farce s provided that to wo►tet to eteapenaeud at a [ ,
(Il Contracts CDo1 be mode ally with re- Las nquYeaxn>i peyttded la AttscLmsat the po- se tots pirpuo.r. este of tot Ms than 1% rims the bade
aponsible
Irrational ability to perform rrs who ?maruuocaetr lly 4 4.11 motrietoswardtd by retepclezts Lod ote or/ lfoursy f r all bows warted 4 err tea o aura
wader tree irons Lod oondfuoas of a pro- thW tr�+t
aono►& a rtrDtCaatea an[!avi a to vrottwset. •retbn f07 d the Awl r
poled procurement Cowie'er►ttoc shall be wise of is,,,,,, than sic socC. halt malsln a thewort
to constructionk. &lo woR sad proetda
Sf•se to such matters b ooatractar warm. prottaroa requlrtal ecrrapliencs vie been- applicable to r =�no �e o1 be is , es
ed
record of plat perfor'mar el• leeordat Lad Yee Ordet ltles, saUusd •ZQ� "mislay- to that DO sa aurroundlnp Of under working
technical resources or aoceasbiltty to ether mint Opportunity."ea amended by aacuu•e eoadltlons wfutrw arc uasLaftcod r w rking
Oleil
IIKAssar. rsaouroas. Order I..e.,•ad a tupplemeoud to Depart- err d&.nterova m b-b health and safety r ds-
•
(sl All proposed sole source eoatrsets or moat of Ls•Dor mrijotpots (et cm..M al, host alder maatru ace safety Lad
erLere only One bed es propnu.: is received • All etntracte Lad suterr►ats to mom,d be a tt d gamerpromulgatedeone bJ Mor-
in which the aCCr u teDeaClturt II es- 41,000 fee ooaatruRba 0,7 rtpatr ',LAW b7 beef d LLbor. T�set rselut by the dO trot
pecud to tact'ed IS,000 &ball be reb}t•ct b !Vents and cubrtttpreots shall Include a "r7 to the pureh&es of supplies tr saatt-
prior approv'a1 at the duatUoa of the Ted- brrovtsloa for eomptlanol vitb the Copelattrd rlala at a pa oedlaattly applies a Oa tat •
sr sponsoring moot 7• 'Anti-Lei Zack" Act (IS VAX. fit) open market..or m°trecta for transportation
(1) loose form d price or one b every ruppitmenud to atpartmtat d "kw `fe„or',�oa of tatauseu o.
should be made la ooantctfoa with every emulations OS C771. Part /). Tali Act 'ay. L, Contrarta w meats, the priaetpal
pPOetye•ment Kttero P•r1" aha=Jt1• 1'dL7 be f10ea that taC� aottrac r ar suberentae per= Orm-ta a tt it Cie",dohs al Op w US'
sl
oecoalplohed !a vsrlous raja. fadirdlng the eh ill be pro blDtled from lndu clog, by lop eructs. P or methods; err !w
oocn(wtieon of price quotations ruGrstltted, �� •aJ person employed to the etnttrtaa es tontine ruin 0&t4 twat dlreetly maerrra i
withmarket prizes and similar tndfela, eorevi er VOL.completion,or repair of public wort,to pt DUc 300 t.safety or welfare, orti coot t
aid discounts f s t, SiD n the osi review 111" up toy pert d for etmpeo. tloo 10 TD this find of Kteme w ue.baotorey la whleb
and tv&itsUon of race element of Dort el which be h otherwise entitled Tba Mlptett there f>W here little <ntssolat arptritta•
detemmnoe teasanahfeaea, tllOoahiltt7 lad shall report ale suspected or eeptrrtod - Outside d wort funded by Pedant sestet-
t llowahlllt7. ernes to the hderLI aponaortas agency. once.chat'ono talc s notice to the effect that
(t1 Proexeauat records and eta tor pure f. When required by the Peden! program •Mien rcgvdln/ rtiDu tee IavenUoas lad
chores to arches of 110,t100 atoll include the legislation. all construction contrecte atsryus rnenud uada the erontraet t
lo(el D awarded by the recipients and subreolpient areemtat are ruD)ect to the reetitaticroa Y-
(a) Smarts for Lion fortot ak of co rued bf aaorftu aleae7 tad
(b) �usttficatloa leer of ie areeUUeo of more ib'Du 0� the1Di'te c (� the Tedery sp°
when oberpeuU•t bids or offers toot for compltmetAct Try the nUpltat. The oo°tr'Cbr shall M ad-
obtained. D.•C.117" to 6-7) lad as aupD etrd as to the source of additional taforma-
ylepvtmtnt of Labor ta(ulatlooa (16 C a' Oen regard these matters.
(e) Ass far award oast w petit l All taegou►ted mat:Lou (ssorPt these
(I) A system for coo .o .?e atotracor Pert re toilet thiswsotto labor
le t10.000 ar fes) eoLrded by etctpieoso
aha)1 be maf�talntd to ttar�re etatraetor reQvbed to pal wages
ahaD intrude s yrovsion to tar •tact tact
conformance with sous, conditions lad en►eeenles ei a nu not ifs deter thett ti m y tol a/eaea
ede• gtesttona of the eoatraet, and to ea sure the
a e<r to 1°of LaDor ft ►dditba.ea°- comptroUtt Oeo the enl of the tatted•tots.
a aalli and timely Idlowt&p d ail put- by eLe 'Lb
reaeata-
tractors t.Da11 be requtrtd to L•J ^is fit w any d theV duly authorised ray
trhaas yea. awl beet to Loy M•el. doev-
1. The oasto tt tdii include.It om lt1oe tea Qom of lbScurrent prevailing wage meow papers tad record& of the aoatnetot
to eoment. to home i nosed and complete p p7 of d neat to►•p.CILC pro-
•a{+e+meat, the following provisions In all determination issued by the Dep►rtme wLIcD are dlrectll Pe7•tl
eoatr•cu These provision &ball aloe be tp- Labor to esrt solicitation and the award FROM for the purprae of wasting audits.
te
plied tosutoDatraeta. of a CI"triCt ebeJJ be etndttonld upon the tiamfnatiaa&,eaorrpt and transcriptions
I. Ooatr tti lad eu rovlaloII
I. Contr+ets in eats&e0/10.r100 a?+aL erne- •eceptaaw of the wage deter all �tto� •:ass of 1f00.000 art subs-mats
punts
to
tout silos f odminW. err condition ons portedrecipfn shellto the Padenl a7'a R then reoutree the netptent to agree to arm-
Lust will allow for rL•nlrtr rat one e,to ante sjl with all ippltoble staod&rda. orders or
coal a legal iott. 1D tna aunts et terms g. Orb ere applicable, ell eoatnrZs wrestled ply
urruent to the Cleave Air
oor,t provides viol Lit or Drearb aontratt terms• trecl lead in mess of t1.000 for construe- Act of l/0 (43 ti C. 11157 et eq) and tier
lad for suer! remedial voices Cl elb"' eer*tri.tl& sad is sinus of sp.100 for Pe•dersi Weser Pollutloo Control Act (•t
May I appropriate. otber contr►cu that involve tbt employment vac It51 et as i) •a •needed violations
b
All eontra1e to bier J of I10.000 shall sbIJi be repo ruoria
bortafa suf recipient
!Deluding
for tmanna by visioof n compli:info'or ance with secUonad103 Lad •Roney and the Regional Maeof the �`
w the rauntnt toelud the mannerthe p
wale! teratlnsuoa grill be efectod and ICI of the Contract Wort souse sod •alety ouwIroentLi 7totectlon Asetae7.
Tres for settlea,eat In sdditba. ruoh coo- Standards Act (40 VI . 7 eed ofLab Os r eve (�pa,aTFlltot Piled 7-1�7/;t is ttm�
trace ,ball describe eoadlUoaa under whizh pieaieb ar
tad by Uepart
"a-
1/DIIAt •1Gf1T1t. VOL 41. NO. 11/—RIDAT, ART SS. 1976
IL a elovasnsart peorrpo orrice.:n+a o•so-en
•o:•sso
S.a,,,,.,eiwe:,Lai.. A erg _ - -
•
r. ,
EXHIBIT E
'5°1
1114' Handbook 1300.20
ci U.S.Department of Housing and Urban Development
o 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-1 22 )
CFFO:Distribution:W-3-1,R-1,R-5-1,(Special)
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 ro 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.
3-
1300.20
r Tuesday
July 8, 1980
-41011v-
Imi
_______
_ _
Part III
Office of
Management and
Budget
Circular A-122, "Cost Principles for
Nonprofit Organizations"
46022 Federal Register / Vol. 45, No.132 1 Tuesday, July &1980 / Notices
OFFICE OF MANAGEMENT AND public comments.The more significant cognizant agency and the recipient to
BUDGET changes to the basic Circular and negotiate when there is no basis for
Attachment A include: determining the fair market value of the
Circular A-122,"Cost Principles for 1.Paragraph 2."Supersession"was services rendered,and to permit indirect
Norrproftt Organizations" added to the basic Circular to make it costs 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
principles'issued by individual agencies. cost sharing or matching requirements.
Budget 2.Paragraph 4 of the basic Circular 4.Paragraph 31,Equipment and Other
ACTIOat Final Policy. has been amended to make it clear that Capital Expenditures,was changed. •
the absence of an advance agreement an 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 reasonableness of allocability useful life of more than two years.
determining costs of grants,contracts, of that element Also,this paragraph 5.Paragraph 26,Meetings,
and other a h nonprofit was amended to make it clear that Conferences.The prior approval
fireements wit
where an item of cost requiring prior requirement for charging meetings and
organizations approval is specified in,the budget, conferences as a direct cost was
The Circular is the product of an approval of the budget constitutes deleted A sentence was added to make
interagency review conducted over a approval of the cost it clear such costs were allowable
two-year period.Its purpose is to 3.Paragraph 5 of the basic Circular provided they meet the criterion for the
provide a set of cost principles to has been changed to remove any doubt allowability of cost shown in
replace existing principles issued by as to which nonprofit organizations Attachment A.
individual agencies.These have often would not be covered by the Circular. d Paragraph 27,Organization Casts,
contained varying and conflicting Now,Appendix C to the Circular lists all was amended to provide that
among agency administrators,auditors. 4,Paragraph 6 was added to the bask when approved in writing by the
and nonprofit officials.The new Circular Circular to permit Federal agencies to awarding agency.
will provide aa uniform approach to the request exceptions from the 7.Paragraph 30,Page Charges in
problem f determining coati,and requirements of the Circular. Professional Journals,was revised to
promote efficiency and better 5.Paragraph F_2.was added to that page charges maybe
understanding between recipients and Attachment A to cover the negotiation provideallowable. P g
the Federal Government and approval of indirect cost rates,and
EFFECTive Den:The Circular becomes to provide for cognizance arrangements. 6.Paragraph 37,Public Information
effective on issuance. The more significant changes to Service Costs, was modified to make
FOR iURTt'IER INFORMATION CONTACT: Attachment B to the Circular include: public information costs allowable as direct costs with awarding agency
Palmer A.Marcantonio,Financial 1.Paragraph S.Compensation for approval.
Management Branch,Office of Personal Services,was modified to: o Paragraph 43,Rental Costs,was
Management and Budget,Washington. a.Permit Federal agencies to accept a rewritten to:
D.C.20503,(202)395-4773. substitute system for documentinga.Make it clear that rental costs
SUPPLEMENTARY INFORMAT101t Before personnel costs through means orbs: under leases which create a material
the Circular became final there was than personnel activity reports equityon the propertyare
extensive coordination with the affected b.Clarify provisions covering the iOWo onlyleasedto td aont that Abe
nonprofit organizations,professional allowability of coats for unemployment organizationa ooed have been allowed
associations,Federal agencies and compensation or workmen's had they would property:awe
others.All interested persons were compensation.and costs of insurance depreciationpur hor usee allowances.
.g..
given an opportunity to comment on the policies on the lives of trustees,officers. maintenance,taxes,allowances.
proposed Circular through informal or other employees: the criteriaes,inuforra material,etc.
consultations and a notice in the Federal C.Make unallowable any increased Clarify
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 employees. addition to the above,a number of
comments were considered in the final 2.Paragraph 6,Contingenoiet,was editorial changes were made to the
version.,f:he 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 Suggested Changes Not Considered
Insurance reserves or pension funds. 'ems
action taken on each. Necessary.
In addition to the changes described 3.Paragraph 10 was modified la
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 dun arm's length"leases,rental costs
have tried to make the language of this share of indirect cost only when(a)thin 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 organization.In their opinion this rule
governments(Circular 74.4). cost incurred by the organization.and wise result in unnecessary cost to the
(c)the direct cost activity is not pursued Federal Government since it would
Summary of Significant Changes: primarily for the benefit of the Federal encourage an organization to lease
Set forth are changes that have been Government Provisions were also sparse 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 1 Vo1. 45, No. 132 1 Tuesday, ?lily
g, 1980 I Notices 48023
employer relationship in the individual agencies for nonprofit
.eigned to. eve cost principles areorganization.
•signed there cover mostwsituations;always
ep
arrangements for this assistance,nor are Applicability.a.These principles
�wevar, are always exceptions there committee members normally I
ia
reimbursed for such services.Further,it shall be used by all Federal agencies in
determining the costs of work performed
Ise must be considered on s case by was pointed out the committee members g
roe basis.The Crcular contains• thousands of hours outside by nonprofit organizations under grants.
revision for Federal agencies to request spend rga�tion s premises conducting cooperative agreements,cost
xcrptions. reimbursement contracts,and other
Comment Several respondents research. appear that this contracts in which costs are used in
uestioned why interest is not an � Responds.It would administration,or settlement
llowable cost,since it is an ordinary type of committee arrangement would All pricing.ad i ?ratioinstruments are hereafter
.nd necessary cost or doing business. not be considered in the determination of
these
s as awards.Theheref principles do
Response.It has been a longstanding of the organization's indirect cost
rate do not not referred
to to awards The an
,olicy not to recognize interest as a cost provided that Federal agreementsorganization t is notundrwhich
iowever,this policy has recently been bear an unreasonable share of indirect the Governmentno requiredfor actual accountts
*wised for State and local governments - cost.However,the cognizant agency
n Circular 74-•1.With respect to the cost will be responsible for evaluating the b. reimbursement subawards
)f office space.The revision provides allocation of indirect cost where there (sub All cost, reimbtraem,etc.)are
that"rental"rates for publicly owned are committee-type arrangements on a subject to those Federalntractcost)principles
includin mdep ebec based nont actuals costs. case-by-case basis• ndent suggested applicable to the particular organization
including depreciation interest. Comment. •One reepo concerned.Thus,if a subeward is to a
operation and maintenace setts,and that wherever possible the language in nonprofit organization this Circular
other allowable costs.This revision was the Federal Procurement Regulations be' shall apply if a subaward is to a
under consstudied
si for some time.It used for nonprofit organizations. commercial organization the cost
was studied extensively by OMB,the Response.The language in the Federal principles applicable to commercial rtl N to
General Accounting Office?rid others. p utremednt Regulations wu concerns shall apply.
and considerable analysis went Into Its designated primarily for commercial a college or university,Circular A-21
formulation.Suggestions for extending it firms,and is not necessarily well suited shall apply,if a subaward is to a State,
p organizations aqua would have to local,or federally recognized Indian
to nonprofit erg to nonprofit organisations•At the
be examined with equal care.This has suggestion of the General Accounting tribal government,Circular 74-4 shall
not yet been done,and we were Office,the nonprofit cost principles apply.
reluctant to further delay issuance of were written to conform as closely u 4 Definitions.a."Nonprofit
this Circularorganization"means anycorporation.
respondents possible to those of educationalative.or other
Comment why pubic informationinstitutions(Circular A-21),and State trust association.coops
questioned allowable as indirectcost. and local governments(Circular 74-4). organization which(1)is operated
wereR not information an ti.ordan, • primarily for scientific,educational.
oses
Response.direct services
icestoa costs CChief,Financial Man4pement Branch. service,charitable,or similar pure
are often services to an in the public interest;(2)is not
ems.They are in the ub pri interest;
for)Is and(3)
organization's e,ho ever programs.a (Circular No.A-sas)
•allowable,however,as a direct charge �
when they are within the scope of work l uses its net proceeds to maintain.
lie v.1oeo improve,and/orprc expand its operations.
of a particular agreement To'Ihe Heads of Executive Comment One respondent suggested For this purpose,the term"nonprofit
Departments and Establishments organization"excludes(i)colleges and
th smaller grantees be acluded from Subject Cost principles for nonprofit universities;(ii)hospitals;(ill)State,
complyingy .with theaCircular.ruleso organizations. local,and federally recognized Indian
Response.Similar wouldr the 50 1.Purpose.This Circular establishes tribal governments;and(iv)those
selected itemsof the costof the be ee Tod Principles for determining costs of nonprofit organizations which are
tregardlessexnt possible,size the grantee.l grants,contracts and other agreements excluded from coverage of this Circular
the extent odd for with nonprofit organizations.It does not In accordance with paragraph S below.
grantees simplified methods for smaller apply to colleges and universities which b. 'Prior approv "means securing
grantees. are covered by Circular A-21;State. the awarding agency's permission in
Comment One respondent Accountinguld the local,and federally recognized Indian advance to incur cost for those items
Standards
requirements ofr the Costbealiedt tribal governments which are covered that are designated as requiring prior
Standards Board should nonprofitapplied to by Circular 74-4;6r hospitals.The approval by the Circular.Generally this
organerizations.
contractsa with principles are designed to provide that permission will be in writing.Where an
orRe p Response.
It the Federal Government bear its fair item of cost requiring prior approval is
Rrantees oe unlikely this thatCircular the type share of costs except where restricted or specified in the budget of an award.
wouldof
grantees covered s enough
prohibited by law.The principles do not approval of the budget constitutes
- have contracts large et tot
covered by the CASB•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, 5.Exclusion of some nonprofit
or other agreements.However,such cost org becauseom np oft/size and
CASE would apply. sharing or matching shall not ke organizations,
Comment.One respondent said the accomplished through arbitrary' nature of operations,can be considered
allocation of iddioeet cost to donatedous limitations on individual cost elements to be similar to commercial concerns for
difficulty
would organization.tremendous byFederal agencies.Provision for profit purpose of applicability of cost
organiza to therelies oacorpsThec operate Such no prof Federal gin
organization on a of or other increment above cost is outside principles. nonprofit organizations
st
approximately 8.000 committee members the scope of this Circular• shall principles applicable lF to commercial
to carry out obligations in response to 2.Supersession.This Circular P le theseos
concerns.A listing
Government requests.There is no supersedes cost principles issued by -
—2—.
48024 Federal Register / Vol. 45, No. 192 / Tuesday, July 8, 1980 / Notices
organizations is contained in S.Applicable credits clients.the public at large,and the
Attachment C.Other organizations may a.Advance understandings Government.
be added from time to time. B.Direct Costsd Significant deviations from the
e Responsibilities.Agencies
practices of the organism:len
responsible for administering programs C Indirect Costs
owhich
osts may unjustifiably Increase the award
that involve awards to nonprofit D.Allocation of Indirect Costs and t Allocable oast&
organizations shall implement the Determination of Indirect Cost Rates a.A cost is allocable toe particular cost
provisions of this Circular.Upon 1.General objective,such as a grant.project service,or
request,implementing instruction shall 2 Simplified illocation method other activity,in accordance with the relative
be furnished to the Office of 3.Multiple allocation bass method benefits received.A cost is allocable to a
Management and Budget.Agencies shall 4'Direct allocation method Government award if U is treated
&Special indirectcost rates consistently with other costs incurred for the
designate a liaison official to serve as rec ,
the agency representative on matters E.Negotiation and Approval of Indirect Cost same purpose In like circumstances and if it
relatingto the implementation of this Rates (t)Is incurred specifically for the award.
P1.Definitions (2)Benefits both the award and other work
Circular.Tbe name and title of such ,and can be distributed in reasonable
representative shall be furnished to the 2.Negotiations and approval of rates proportion to the benefits received.
Office of Management and Budget (Circular No.A-122j (3)Is oecessery to the overall operatioe.of
within 30 days of the date of this Attachment A the organization although a direct
Circular. relationship to any particular cost objective
7:Attachments.The principles and General Principles cannot be shown.
related policyguides are set forth in the b.Any coin allocable toe particular sward
A.Boric Conaiderotratra or other cost obiectivs under these principles
following Attachments: 1.cotnpceii'on of total costa The total acne may cot 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 dimui and allocable indirect wets iess icy restrictions imposed by law or by the terms
Attachment C—Nonprofit applicable credits. of the award.
Organizations Not Subject to This L Doctors affecting allowobility of coats. 5.Applicable credits.
Circular To be allowable under an award costa mist a.The term applicable credits refer to
8.Requests for exceptions.The Office meet the following general criteria: those receipts,or reduction of expenditures
a.Be reasonable for the performance of the which operate to offset or reduce expanses
of Management and Budget may grantitems that are allocable to awards as direct
exceptions to the requirements of this award and be allocable thereto under these or indirect costa.Typical examples of such
Circular when permissible under princlplea transactions arc purchase discounts.rebates
existing law.However,in the interest of b.Conform to any limitations or ertclusiona or allowances,recoveries or indemnities on
achieving maximum uniformity, cat forth in these principles or in the award losses,insurance refunds.,and adjustments of
exceptions will bepermitted o in as to types or amount of coat henna overpayments or erroneous charges.To the
P only a Be consistent with policies and • extent that such credits accruing or received
highly unusual circumstances, procedures that apply uniformly to both by the organization relate to allowable cost
9.Effective Date.The provisions of federally financed and other activities of the they shall be credited to the Government
this Circular are effective immediately. organization. either as a cost reduction or cash refund as
Implementation shall be phased in by d Be accorded consistent treatment. appropriate
incorporating the provisions into new • a.Be determined In accordance with b.In same inIlincas,the amounts received
awards made after the start of the generally accepted accounting principles. form the Federal Government-to finance
organization's next fiscal year.For fi Not be included as a cost or used to meet organizational activities or service operstioce
existing the new may cost sharing or matching requirement ad any should be treated as applicable credits.
be applied is awards organization principlesrn and the other federally financed program In either the Specifically,the concept of netting sack
PP B current or a prior period credit items against related expenditures
cognizant Federal agency agree.Earlier - g.Be adequately documented should be applied by the organizaton in
implementation,or a delay in . 3.Reasonable cost.A cost is reasonable determing 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 facilities or other
between an organization and the person alder the circumstances prevailing it• tesoartxs used in providing such services
cognizant Federal agency the time the decision was Bade to teeter the have been financed directly,to whole ar
10.Inquiries.Further information eta The question of the reaaonabienesa of to p.m h7 Federal bade
specific costs must be scrutinized with
concerning this Circular may be e(c)For rules covering program Income
particular rare in connection with
obtained by contacting the Financial orgenivatinns or separate divisions thereof (le.,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 su rt from awards made Federal . OMB Circular A-110. •
a8 ppo by
Budget,Washington,D.C.20503; asencies.In determining me reesoaabTeness . a.Advance and understandings.Dudgeon,
telephone(202)395-4773. of a gives cost,oostsideration shall be given given award the reasonableness and
fames T.Meietyw,Jr., - . to allocability of certain items of costa maybe -
Director a.Whether the cost Is of a type generally difficult to determine.This is tree
recognized as ordinary• end necessary for the In connection with attrition,that receive a
(Circular No.A-1221 operation of the organisation or the . preponderance of their support from Federal
Anathema A performance of the award agencies in oder to'vole subsequent
b.The restraints or requirements Imposed diaaiiowanca or dispute based on
General Ihindples by such factor,as generally accepted sound unreasonableness or nonafocability.It is °
Table of Contents business practices.arms length bargaining, often desirable to seek a written agreement
A.Basic Considerations Federal and State laws and regulations,and with the cognizant or awarding agency to
terms and conditions of the sward. advance of the Incurrence of special or
1.Composition of total costa e.Whether the Individuals concerned acted unusal costs.The absence of an advance
2.Factors affecting allowahihty of costs with prudence in the circumstances. agreement on any element of cost will not,r
3.Reasonable costs considering their responsibilities to the Itself.affect the reasonableness of
4.Allocable coats organization.Its members,employees,and allocabilitr of that tie:sank. - •
_3_
' Federal Register / Vol. 4S, No. 132 / Tuesday, July 8, 1980 / Notices 48025
I.Direct Cade- ---•-••-- • — - -ie like oiraiastencss,has 2neesrsaignad_o . where an orgarrsatioo has Daly one major
L Direct mete a e thou that can be. as sward a s direct cost function esszocepaastag a number of
identified apec35u1(y with a particular Baal t Because of the diverse cbareeierietia individual projects or activities,and may be
out objective:La.a particular sward, • and scrxxmt ng practices of oonprefit need wbscs the iced d Pedaral awards to an
project'orrice.or Ober direct startup elan organisations,it is not possible to sped the organization is relatively small.
orgaatsatloa However,a cost may not be types of cost which may be classified as b.both the direct costs and the indirect I
assigned to as sward u a direct coat if toy krdireet cost in all situation.However.typical costs shall exclude capital expenditures and
other hoof incurred for the mama purpose,to examples of indirect cost for many nonprofit unallowable coats.However.unallowable
like ttlrzzaastence,has been allocated to an organastirxas may iodide deprecCatioa or coats which represent activities must be
award as an Indirect cost Cost identified use atlawaaces me betiding.and equipment.- included in the direct costs ander the
epie"ite.l)y with awards are direct cost of the the costs of open ling and maintainh g conditions deaaibed in paragraph 111.above.
awards and are to be assigned three* facilities,and gceral adminlstrstioc and c.The distribu.uoc base may be total direct
ttbezeta Cat identified specifically with other general expenses,such as the salaries sad Costs(excluding capital expenditures and
Vaal cost objectives of the organization are expenses of exeartivs officers,personad other dietorticg Ilene,wcd as major
erect toots of those coat objectives and are administration,and aocoentiog. _ subcontracts or subgranta),direct salaries
loot to be eeslgnother
ed to awards directly at D.Alla ed:on of indirect Cat an and wages.or ether base which moats In an
iffy �. - Determination of Indirect Cost Rohn. • equitab►t distribution The distribution ban
L Any direct cost of a mina amount may , shall generally exclude participant short
be treated as an indirect cost ofor reasons of 1. General costs as defined in paragraph 2i of •
practicality where the accounting treatment a.Where a nonprofit organisaboe has only Attatnsant B.
for such cost is oonaistently applied to all one major function,or where all its major d.Except where a special raters)is
final cost objectivK functions benefit from Its indirect costs to required in accordance with paragraph Di
3.The most of certain activities are not approximately the same degree,the below,the Indirect coat rate developed ttadar
allowable es charges to Federal awards tees. allow Lion of iadir costa and the the above principles is applicable to all
for example,fund raising costs is paragnpb Computation of an indirect cost rate may be awards at the organizetion.ifa special
21 of Attachment B).However.even though accomplished through simplified allocation rites)is required appropriate modifications
these costs are unallowable for purposes of b as described in paragraph 2 shall be made in order to develop the special
ow.
computing charges to Federal awards,they l eate(s).
nonetheless must be treated as direct coat for b.Where an organizatlec has several major S.Multiple allocation bass method
purposes of determining indirect oust mu functions which benefit from its indirect costs a.Where an organtestioo's indirect omits
and be allocated their share of the in varying degrees,allocation of indirect benefit its major functions In varying degrees.
otgsnlzation's indirect costs if they represent costs may require the accumulatloc of such such costs shall be accumulated into separate
activities which(1)include the salaries of costs into separate cost groupings which then cost groupings.Each grouping shall then be
personnel.(2)orpy Way and(3)beneat are allocated iodivieluallY to benefiting allocated individually to benefiting functions
from the organisation's Indirect costs. functions by means of a which best by means of a base which best measures the
l The costa of activities performed measure the relative degree of benefit The relative benefits.
primarily as a service to members.Clients,or Indirect mete allocated to each frnctloe are b.The groupings"hall be established so as
the general public when significant and then distributed to individual awards and to permit the allocation of each grouping on
necessary to the orgaaization's mission most other activities inducted in that dunction by the basis or benefits provided to the major
be treated as direct costs when or Dot means of an indirect cost naafi). functions.Each grouping should constitute a
allowable and be allocated an equitable e.The determination of what constitutes an pool of expenses that are of like character in
share of indirect costs.Some examples of orgertization's major functions will depend on terms of the functions they benefit and in•
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. ' renders to the public.its clients,and its measurs the relative benefits providd to each
eubsaiptiona,publications,and related member•e;and the amount of effort it devotes function.The number of separate groupings
function. to such►ctivities as fund raising,public should be held within practical limits,taking
b.Providing services and information to information and membership activities. into consideration the materiality of the
members,legislative or administrative d.Specific methods for allocating indirect amounts involved and the degree of precision
bodies,a the public. costs and computing indirect cost rates along desired.
e Promotion.lobbying,and other forms of with the conditions under which each method c.Actual conditions must be taken into
public relations. should be used are described in paragraphs 2 account in selecting the base to be used in
d Meetings and conferences except those through 5 below. allocating the especial in each grouping to
beld to conduct the general administration of a.The base period for the allocation of benefi ono functions.When an allocation can
tie organization. indirect costs is the period in which such be made by assignment of a cost grouping
S.Maintenacne,protection.and investment costs are incurred and anacmulatad for directly to the function benefited the
of special funds not used in 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
L Administration primp benefits on with the organization's fiscal year,but In any general in nature,the allocation should be
Wulf of members or clients including life tent shall be so selected as to avoid made through the use of a selected base
and hospital Insurance,annuity or retirement inequities to the allocttioc of the costa which produces results that are equitable to
plans,financial aid.etc 2 Simplified allocotion method both the Government and the organization.In
lt+d/recr<Ckast , a.Wber,an organizetioo's nutlet functions enersi any cost element or cost related
C benefit from its indirect costs to factor associated with the organisation's
L indirect costs are those that hen been approximately the same degre,the allocation work is potentially adaptable for use as an
incurred for common or joint objectives and of indirect costa may be accomplished by(I) allocation beat provided(I)it can readily be
cannot be readily.identified with a particular separating the organization's total costa for expressed in terms of dollars or other
anal cost objective.Direct Coss of minor the base period as either direct or indirect, quantitative measures(total direct costs.
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
ILL above.After direct costs have been equitable distribution base The result of this documents processed population served and
determined and assigned directly to awards process is an indirect cost rate which is used the like)and(li)it is common to the
or other work as appropriate,indirect costs to die trinote indirect costs to individual benefiting functions during the base period,
are those remaining to be allocated to awards.The rate should be expressed as the d.Except where a special indirect coat
benefiting cost objectives.A cost may not be percentage which the total amount of rate(s)is required in accordance with
allocated to an award as an indirect cost d allowable indirect costs bean to the base paragraph D.5.below,the separate;employ
any other cost incurred for the same purpose. selected.This method should aloe be cited of indirect costs allocated to each major
•
—4—
•
48028 Federal Register t Vol. 43, No. 132 I Tuesday, July 4 1980 / Notices
function shall be agregsted and treated as a need or any combination thereof.When a Is a major long-term shift is 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
Individual awads included in that function by' significantly different level of indirect costa, opportunity to participate in the negotiation
use 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 tndfhect frost pool applicable to such work. upon it will be accepted by all Federal
the indirect cost rate for each function may The separate indirect cost pool should be agencies.When a Federal agency has reason
be total direct coats(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 subgrants),direct cost rate resulting therefrom shouldparagraph
be used indirect t h Dt rates
above,in ct orwill. nce prior with
the time
salaries and wages.or other base which provided it$s determined that(I)the rate pa
results in an equitable distribution.The differs significantly from that which would the rates are negotiated,notify the cognisant
distribution base shall generally exclude have been obtained ander paragraph DZ g. agency.
participant support costs as defined in and 4 above,and(U)the volume of work to b.A nonprofit organization which has mot
paragraph 2g,Attachment B.An indirect coat which the rats would apply is material. previously established an indirect cost rate
rate should be developed fir each separate w N otiot+cw orad Apprava/o Indwct Cott with a Federal agency shall after the
indirect coat pool developed The rate in each f organization is advised that an sward will be
case should be stated as the percaattaaggee made and in no event.later than three
which the amount of the particular indirect 1.Dej"initions As geed to this section.the months after the effective date of the aayward
cost pool is of the distribution base identified following team have the meanings set forth established a costdirect have
rat ps reviously
st slymit a
with that pooL below
` 4.Direct allocation method I."Cogn.irint agency"means the Federal .new indirect cost proposal to the cognisant
a.Some nonprofit organisations,treat aD 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 expenses.These organization on behalf of all Federal d A predetermined rate may be negotiated
organizatias►a generally separate their cote agendas. for use on awards where there Is reasonable
into three basic categories:(I)General b.'Predetermined rata"means an indirect assurance,based on past experience and
edmiaiatmtion and general expenses,(if) - cost rate,applicable to a specified current as reliable projection of the organisation's costa
fund raising.and(lii)other direct functions future period usually the organization's fiscal that the rate is not likely to exceed a rata
.(inciuding projects performed under Federal year.The rate is based on an estimate of the based on the organization's actual costs. .
,awards).joint costa,such as depreciations, costs to be incurred during the period. a.Fixed rates may Y be negotiated where
.rental costs,operation and maintenance of predetermined rate is not subject to predetermined rates are not considered
fappropriate.A fixed rate,however,shall not
are
telephone expenses,and thelike adjwtment ben negotiated if(I)all or a substantial portion
prorated indivtsually u direct cat to C."Fixed rate'means an indirect coat rat of thego organization's awards are expected to
each category and to each award.or other which has the same characteristics u a B
activity using a base most appropriate to the predetermined eta,except that the difference expire before the carry-forward adjustment.
particular cost being prorated ,between the estimated cost'and the actual can be made (li)the mix of Government and
1 b.This method is acceptable provided each costs of the period covered by the rate is non-government work at the organisation is
joint cost Is prorated using a base which carried forward as an adjustment to the rate too erratic to permit an equitable carry-
accurately urately measures the benefits provided to computation of a subsequent period forward adjustment or(its)the organization's
each award or other activity.The bases must d."Final rate"means an indirect cost rate operations fluctuate significantly from year to
be established in accordance with resonable applicable to a specified past period which is Paz-
criteria, �ional and final rates shall be
and be supported by current data. based on the actual costs of the period.A negotiated neither final predetermined nor
This method is compatible with the final rate is not subject to adjustment negoed rates whereare appropriate.h
Standards of Accounting and Financial a"provisional rah"or billing me means• g .he results of each negotiation shall be -
Reporting for Voluntary Health and Welfare temporary indirect cat rate applicable to a formalised in a written agreement between
•Organizations Issued jointly by the National specified period which is used for funding, foe agency and agreement
Health Council.Inc,the National Assembly interim reimbursement,and reporting indirect the cognizantan. ge and the agency nonprofit shall
of Voluntary Health and Social Welfare . costs on awards pending the establishment of distribute copies of then agreement to all
Organizations,and the United Way of a rate for the period. Federal agencies.America. L Indirect cost proposal"means then,concerned a dispute lgin a negotiation of an
c.Under this method indirect costs consist documentation prepared by an organization indirect costt rate between arisesin the
eelusively of general administration and to substantiate its claim for the agency and the nonprofit organisation the
general expenses.In all other respects the reimbursement of indirect cats Tile dispute shall be resolved in accordance with
organisation's Indirect cost ratess ahal be proposal provides the basis for the revlbw
computed in the same manner as that and negotiation leedi the utes procedures of the cognizant
ng to-the establishmentend
described in paragraph D.2 above. of an organization's indirect cost rate.
Instances. ag To the extent that are
g.Special indirect cost rates.In some g."Coat objective"means a function. encountered among the problemseml agencies is
Instances.a single indirect cost rate for all organizational subdivision contract gnat,a connection with the negotiation and approval
activities of an organization or for each major other work unit for which cost data are process,the of Management
function of the organization ay not be desired and for which provision is made to p ces will lend assistanceM as tand to
appropriate,since It would not take into accumulate and measure the cost of Budget an l problems In a timely requiredmanage. - -
account those different factors which may processes,projects,jobs and capitalizes
resolvesubstantially affect the indirect costs - projects. (Cdreular No.A-1224~. _. . --- -
applicable to a particular segment of work. 2-Negotiation and approval of ratae. Attachment' -
For this purpose,a particular segment of a.Unless different arrangements are • -.
work.For this purpose,a particular segment agreed to by the agencies concerned the Selected neeae el Cost
•
of work may be that performed under a single Federal agency with the largest dollar vales Table of Contents
award or it may consist of work under a of awards with an organisation will be
group of awards performed to a common designated as the cognizant agency for the 1.Advertidy ooees
environment The factors may include the Deantiatior cad approval of indirect cost 2.Bad debts -.
physical location of the work,the level of rates and,wbere necessary,other rates such g.B►d and proposal cores(reserve
i administrative support required the nature of as fringe benefit end=imputes charge-out 4.Bonding cow
the facilities or other resources employed the rates.Once en agency is assigned cognizance 5.Communication cods .--• .
scientific disciplines or technical skills for a partook!nonprofit organization. pommel the ti.Compensation for pommel earvises
involved the organizational arrangements sasigrasot will not be changed asked there 7.Contingency provtsio s
a
_5_
Federal Register / Vol. 45, No. 132 7 Tuesday. July Q. 1990 / Notices 46027
.S.Contributions to par* rIpb W.(ill the precurvineed of goods activities,oa®pensation fir employees on .
O.Depredation and use alowim as and services;fill the dirpose!of morphs' Goverame t- pooeored wosi will he•
10.Donations materials acquired is the performaaae of foe - considered reasonable to the extent that U is
21.Employee morale,health and welfare • award except when organizations an comparable to that paid for similar work to
costs and credits reimbursed for disposals at a predetaswleed the labor markets to which the organization
1
2.Entertainment costs amount to escordsnm with Attachment N of competes for the kind of employees involved.
13.Equipment and other capital expenditures Ott Circular A-11Q or(Iv)specific d.Special considerations in determining
•
14.Fines and penalties' requirements of the award. allowebiiity.Certain conditions require
15.Fringe benefits 2.Bad debts.Bed debts.including theses special consideration and possible limitations
le.Idle facilities and idle capacity (whether actual or estimated)arising from in determining costs ender Federal awards
17.Independent reward)and development' encollectible ac cosnts and other claims. where smmats or types of competsatitm
(reserved) related coiledioe wets,and related legal appear unreasonable.Among sesci conditions
18 Insurance and indemnification costs.are unallowable. are the followingr
18.Interest fund raising,and investment 3.Bid and prepoealcosta(reesersdi • (1)Compensation to members of nonprofit
management costs 4.bonding costs. organizations.trustees,directors,associates.
30.Labor relations costs a.Bonding costs arise when the offioers,or the immediate families thereof.
21.Losses on other awards Government requires assurance against Determination should be made that such
12 Maintenance and repair oats . financial loss to itself dr others by means of compensation Is reasonable for the actual .
23.Materials sod supplies the act or default of the organization.They personal services rendered rather than e
24.Meetings.conferences arise also in instances where the organization distribution of earnings!n excess of costa.
25.Memberships,subscriptions.and requires similar assurance.Included are such (2)Any change in an orgentzatlon's
professional activity costs bonds as bid,performance,payment. compensation policy resulting in a
201 Organization costs advance payment.infringement.and Sdettty substantial increase in the organisation's
V.Overtime.extra-pay shift,and multisWlt bonds. level of compensation.particularly when it
p^emlums b.Costs of bonding required pursuant to was concurrent with an increase in the ratio
2?.Page charges in professional}mynah the terms of the award art allowable. of Government awards to other activities of
29.Participant support costs c.Costs of bonding required by the the organization or any change in the .
30.Patent cost organization in the general 000duct of its treatment of alowability of specific types of
3i Pension plans operations are allowable to the extent that compensation due to changes in Government
Si Plant security costs such bonding is to accordance with sound policy.
3,.Preaward costs business pradioe and the rates and premiums a.Unallowable costs.Costs which art
34.Professional service costs are reasonable under the drruastanoea unallowable under other paragraphs of this
311 Profits and toasts oo disposition of t:CammunionUon costs.Cwta tncrured for Attachment shall not be allowable under this
depreciable property or other capital telephone services,lam!and long distance paragraph solely on the basis that they
assets telephone calls,tekgr•ams,radiograms constitute personal compensation.
V.Public information service costs postage and the like.are allowable. L Fringe benefits.
S7.Publication and printing wits d Compensation for personalserviasa (1)Fringe benefits in the form of regular
38.Rearrangement and alteration costs a.Definition.Compensation for personal compensation paid to employees during
39.Reconversion costs service+includes all compensation laid periods of authorised absences from the}oh
40.Recruiting chats ' currently or accrued by the organization for such as vacation leave,sick leave,military .
41.Relocation costs services of employees rendered during the leave,and the like,are allowable provided
42 Rental costs - period of the award(except as otherwise such coats are absorbed by all organization
43.Royalties and other costs for used provided in paragraph g.below).It includes. activities in proportion 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 membeds (2)Fringe benefits to the form of employer
46.Specialized service facilities fees.incentive awards,fringe benefits. contributions or expenses for social security.
48.Taxes pension plan cats,allowances for oQ-dte employee insurance.workmen's
47.Termination wets
oa pay.tnoentivs pay,location allowances. compensation insurance,pension plan costs
48.Training and education costs hardship pay.and cost of living diferentisds. (see paragraph g.below),and the like.are
49.Transportation costs b.Allowebilily.Except as otherwise allowable provided such benefits are granted
50.Travel costs specifically provided in this paragraph the in accordance with established written
cats of such compensation are allowable to organization policies.Such benefits whether
jCrccular Na A-1221 the extent that treated as Indirect costs or as direct costs
Attadsnsee/II - (1)Total compensation to individual shall be distributed to particular awards and
Selected items at Coat employees is reasonable for the services other activities in a manner consistent with
rendered and conforms to the established the pattern of benefits accruing to ihue
Paragraphs 1 through 50 provide principles policy of the organization consistently individuals or group of employees whose
•
to be applied in establishing the allowabilire applied to both Goverci rent and wee- salaries and wages are chargeable to such
of certain items of coal These principles Government activities:and awards and other activities.
apply whether a cost is treated as direct or (2)Charges to awards whether treated as (3)(a)Provisions for a reserve under a self-
Indirect.Failure to mention a particular item direct or indirect costs are determined and insurance program for unemployment
of cost is not intended to imply that It is supported as required in this Qarsereph. compensation or workmen's compensation
unallowable•,rather determination as to a Reasonableness. are allowable to the extent that the
allowability in each case should be based on (1)When the organization Is predominantly provisions represent reasonable estimates of
the treatment or principles provided for engaged in activities other than those the liabilities for such compensation.and the
similar or related items of cost. sponsored by the Government compensation types of coverage,extent of coverage.and
1.Advertising cants for employees on Government♦ponsored rater and premiums would have been .
a.Advertising costs mean the poets at work will be considered reasonable to the allowable had insurance been purchased to
media services and associated costs.Media extent that it is consistent with that paid for cover the risks.However,provisions for self-
advertising includes magazines.newspapers, similar work in the oryaaisatian's other insured liabilities which do not become
•
radio and television programs,direct mail activities. • payable for more 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 art solely for(I)the recruitment and in cases where the kind of employees (b)Where an organization follows a
of personnel when considered in coo(unctios required for the Government asttivitiss are consistent polcy of expensing actual
with all other recruitment costs,as set forth not found in the organization's other - payments to,or on behalf of.employees or
•
-6-
4602 Federal Register / Vol. 45, No. 132 / Tuesday, July 8. 1980 / Notices
farmer employees for unemployment (2)Reports reflecting the distribution of an
ndno ands ore be made tht rou h nee
exceptt
corperranon or workmen's compansation. activity of each employee must be aas rounced in paragraph 1.below i
such pays staff P
ents are allowable in the year of maintained for ell sta members
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 compenutioo is charged.in whole or in part, used in connection with a single equipment.ssof
to ail activities of the organization. directly to awards.In addition,in order to fixed assets(e.g. rig aloe
(4)Costs of insurance on the lives of support the allocation of indirect costs,such . computer equipment,etc.).
trustees,officers,or other employees holding reports must also be maintained for other b.The computation of use aflowanoes or
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 functitona or activities if a distribution of their acquisition cost of the assets involved The
insurance represents additional compensation between such functions or acquisition b cost
of a n asset party donated
to d to the
e its fake
compensation.The costa of such insurance activities is#needed in the determination of organization
marketnivalue yt third time ofthe allbei donation.
when the organisation is named as the organisation's indirect cost rate(s)(e.g.,
beneficiary are unallowable. an employee engaged part-time in indirect c.The computation of use allowances t:
s.Pension plan coats. cost activities and part-time in a direct depreciation will exclude.
(1)Costs of theorganization's pension plan function).Reports maintained by nonprofit (1)The cost of land
which are Incurred in accordance with the organisations to satisfy these requirements (2)Any portion of the cost of buildings and
established policies of the organization are must meet the following standards: equipment borne by or donated by the
allowable,provided (a)The reports must reflect an a�— Federal Government or irrespective
of
t where
(a)Such polices meet the test of fact determination of the actual activityof title was presently runas ally vested
reesonableneea; each employee.Budget estimates(Le,
nd
(b)The methods of cost allocation are not 'estimates determined before the services are (3)Any portion of the cost of buildings and
discriminatory; • performed)do not qualify as support foe equipment contributed by or for the
(c)The cost assigned to each fiscal year ts charges to awards. organization in satisfaction of a statutory
determined in accordance with generally (b)Each report must account for the total matching retirement.
accepted accounting principles as prescribed activity for which employee.era d.Where the use allowance method la
in Accounting Principles Board Opinion No.8 comp. used and which is required in followed.the use allowance for buildings and
issued by the American Institute of Certified fulfillment of their obligations to the . improvement(including land improvements
Public Accountants:and organization such as paved parking areas,fences.and
(d)The costs assigned toe given fiscal year (c)The reports most be sir»d by the sidewalks)will be computed at en annual
are funded for all plan participants within six (adividual srmployea.or In,'a rsrponaibla rats not exceeding two percent of acquisition
months.afler the end of that year.However, official havtas first hand cost The use allowance far.catp:meg win
ta�eases to normal and past serrice pension m '� sir be computed at an annual rate Dot aaueediug
costs caused by a delayin funding the �a"rl�a of the dirtties performed bypercent of atigsasilioa cost.
employee,that the distslbrtim of activitysix and two-thirds
actuarial liability beyond 30 days after each . r•eprasenta a rsasosable estimate of the When the use allowance method is used for
quarter of the year to which inch costa are actual work psrfcxaad try the employee buildings the entire building mast be treated
aegnabla are Snrllowable. during the periods oovwed by the reports. as a single asset the building's cceepo eats
(2)Peasina plan termination ce (d).�rs'Dov mast be prepared at lout (e g•plumbing system.h.stiag and air
prsmlums paid pmsuact to the Employee monthly and crust on4J�de with one or more conditioning.etc.)cannot be segregated 14uu
Retirement Income Security Act of 1474(Pub. od , the building's shell.The two percent
L 93 are allowable.Lets payment �(j Charge.fa the salaries and wages d limitation,however,need not be app/ted fo
charges es on
on such premiums are unallowable. nonprofessional employees,in addition to the equipment which is merely attached or
(3)Excise taxes s onon accumulated ccumulated funding suppo*�*documentation described in fastened to the building but not permanently
deficiencies and other ti mtint imposed subparagraphs(1)and(2)above,must also fixed to it and which is used as furnishings or
Seder the Act ar can Retirement Income be supported by records indicating the total decorations or for specialized purposes(e.g,
Security ers unallowable. number of hours worked each day dentist chairs and dental treatment units.
h.incentive troemuo pees aced Incentive maintained in conformance with Department counters,laboratory benches boted
ooapmution to employees Dared, Dolt of Labor regulations Implementing the Fair floor,dishwashers,carpeting etc.).
tuggostio,a efficientperformance, Labor Standards Act(29 CFR Part 516).For equipment will be considered as not being
suggestion awards,safety awards etc,are this purpose,the term"nonprofessional • permanently fixed tot the building if it can be •
allowable to the extent that the be reasonable
employee"shall have the same meaning as removed without the need for costly or
and s compensation is determined toc up roursua t , 'bonexempt employes."under the Fair Labor extensive alterations or repairs to the
to a such Dose are paid or into
good faithat •
Standards Act. building or the equipment Equipment that
between an the agreement organization
into to employees (4)Salaries and wages of employees used meet,these criteria will be subject to the fix
tthe services
were rend the hi meeting cost sharing or matching and two-thirds percent equipment nee
before the services were rendered or requirements on awardspust b supported In allowance limitation
pursuant tos aninsto consistently
plan followed by the same manner as Wanes and w� a.Where depreciation method is followed,
the effect.
an agr so ent to make u hto imply, claimed for reimbursement from awarding the period of useful service(useful life)
payment an agreement to such agencies. • established In each case for usable capital
na Contributions to assets must take into consideration eucb
shift.andmultiahi/! 7.Contingency provrsio factors as of construcdon.nature of the
i.Overtime.Se.extra pay �. reserve or any similar type
miums.See paragraph re. a contingency nce d equipment used technological developments
Pr'e p map vision made for events the occurrence I.Severance na ndy.See paragraph S. which cannot be foretold with certainty as to In the particular program area.and the
IL graphing and education coots.Seetime,intensity,or with an aawrama of their renewal end replacement policies followed
LParagraph Aare unallowable.The term • for the the individual items or classes of -
( Supports toa w salaries and wages. �-a� excludes self- assets involved.The method of depreciation
contingency reserve" asset(or group
e es to awards for salaries andused to assign the cost of an
1 Charges af.3 and
( ) �8 Insurance rcsarvas(see paragraph ( )
wages.whether treated as direct oore n 1ti.a.(2)(d)k pension funds(see paragraph of assets)to accounting periods shall reflect
Wired costa,willd be based on documented and reserves for normal severance peg the pattern of consumption of the asset
payrolls theoapproved by a responsible of5dal(t) ( ear during its useful life.In the abeam of cleat
of organization.wags to a a di most beof (see paragraph @x11 Contributions and evidence indicating that the expected
salaries and wages to awards most a Contributions.Coatrt
Lion to others are consumption of the asset will be significantly
supported by personnel activity reports es by the organise greeter or lesser In the early portion.of its
prescribed in subparagraph(2)below,except unallowable, useful or an the later y Portions
when a substitute system has been approved S.Depreciodan and cos allowances. straight-line 111. ���shalle be presumed the to be
in writing by the the cognizant agency.(Sae a.Cwnpsnsatlon to the Sae of buildings. SSao
paragraph E2 of Attachment A) other capital improvements,and equipment the appropriate method.Depreciation
—7—
. - __- - Federal Refits: / Vol. 43, No. 132 / Tuesday, July 4 1980 / Notices 46029
'mrehods once used shall not be changed rtimburesd ender the award at said to Meet (1)"Equipment"means an article of
Idlest approved in advance by the cognisant cast&haring or matching requirements. eonexpendeble tangible personal property
Federal agency.When the depredation (6)The value of the donated services may Saving a useful life of more than two year'
method is introduced for application to wets be used to meet oast sharing or matchina and an acquisition cost of$500 or more per
previoualy subject to a use allowance,the requirements under conditions described In unit An organization may use its own
combination ease allowances and Attachment H Obi Circular No.A-110. definition pp*roovided that it at lout includes all
depredation applicable to such assets must Where donated services are bested as toonaxpendsbit tangible personal property as
Dot exceed the total acquisition cost of the indirect costa,indirect cost rates will defined herein.
*meta.When the depredation method is abed separate the value of the donations so that (2)`Acquisition cost"means the net
for buildings,a butt ing•s shell may be reimbursement will not be made. invoice unit price of an item of equipment
segregated from each building component (6)Fair market value of donated services Including the cost of any modifications,
(ai.,plumbing ryetsm,beating.and air. . shall be computed as follows: attachments,accessories,or auxiliary
m conditioning syste etc.)and each item (a)Rotes for►olunteer.tr+/ass ltatae for apparatus necessary to make it usable for the
depredated over its estimated useful life;re volunteers shall be consistent with those purpose for which it Is acquired.Ancillary
the entire building(i.e.,the shell and all regular rates paid for similar wort In other charge,ouch as taxes,duty,protective in-
components)may be treated as a single suet activities of the organisation.In cases where transit insurance,freight and installation
and depreciated ever a single useful life. the kinds of skills Involved art not found in shall be included in or excluded from
L When the depredation method is used the other activities of the organization.the acquisition cost in accordance with the
for•particular class of assets.no rates used Wall be consistent with thaw paid organtzation's regular written accounting
depredation maybe allowed on any nob for similar work in the labor market in which practices
assets that,under paragraph s.above.would the organisatiovompetes for such skills. (3)"Special purpose equipment"means
be viewed as fully depredated.However,a , (b)Services donated by other equipment which is usable only for research,
reasonable use allowance may be negotiated orgarizotions.When an employer donates medical,scientific,or technical activities.
for such assets if warranted after taking into the services of an employee,the..services Examples of spade!purpose equipment
consideration the amount of depredation ' shall be valued at the employee's regular rate Include microscopes,x-ray machines,surgical
previously charged to the Government the of pay(exclusive of fringe benefits and instruments,and spectrometers.
estimated useful life remaining at time of " Indirect costs)provided the services are is (4)"General purpose equipment"means
negotiation,the effect of any increased the same skill for which the employee is equipment which is usable far other than
maintenance charges or decreased effiduncy normally paid.If the services ere not in the research,medical sdentlfic,or technical
due to age,and any other factors pertinent to same skill for which the employes is normally activities,whether or not spedd
the utilisation of the asset for the purpose paid,fair market value shall be tad in modifications are needed to make them
contemplated. accordance with subparagraph(a)a suitable for a particular purpose.Examples of
contemplate
g.Charges for use allowances or b.Goods and space. general purpose equipment include office
depredation must be supported by adequate (1)Donated goods:La..expendable equipment and furnishings,air conditioning
property records and physical inventories personal property/supplies,and donated ergs equipment mreorod vehicles,on and andpr automaticog
must be taken at least once every two year' of space may be furnished to an organization. equipment motor
(a statistical sampling basis is acceptable)to The value of the goods and space is not bdata 1)Capital
lg equipment.
expenditures
etur
ensure that assets exist and are usable and reimbursable either as a direct a indirect (i) equipment
i enditurel for b
needed.When the depredation method is oust purposeirect costth theun price
leas a
followed,adequate depreciation records (2)The value of the donations may be said direct d except with the approval of
indicating the amount of depredation taken to meet coat sharing or matching share the awardapitag agency.
each period must alrtio be maintained. requirements under the conditions described (2)Capital expenditures for spedal purpose
10.Donations in Attachment L OMB Circular No.A-110. equipment thatar allowable as direct costs
a Seivic s received The value of the donations shall be provided ed items priorw approvalth a unit costf ef i3000
or more have the of the
(1)Donated or volunteer services may be determined in accordance with Attachment awtrdtng „7•
furnished to an organization by professional IL Where donations are treated as indirect e.Capital expenditures foe land or
and technical personnel,consultants,and costa,indirect cost rates will separate the buildings are unallowable as a direct cost
other skilled and unskilled labor.The value value of the donations so that reimbursement except with the prior approval of the
of these services is not reimbursable either as will not be made a age�
a direct or indirect cost 11.Employee morale.health,and welfare. d,Captal expenditures penditur s for improvements
(2)The value of donated services utilized costs and credits.The costs of house to land,buildings,or equipment which
in the performance of a direct cost activity publications,health or first-aid clinics,end/ materially increase their value or rueful life
shall be considered in the determination of or infirmaries,recreational activities, are unallowable as a direct cost except with
the aryanization's Indirect cost rate(s)and, employees'counseling services,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.pplic.rble indirect organization's established practice or custom expenditures are unallowable as indirect
costs when the following circumstances exist for the improvement of working conditions, costs.However,see paragraph 9 for
(a)The aggregate value of the services is employer-employee relations,employes allowability of use allowances or
material aortic,and employee performance are depreciation on buildings,capital
(b)The services are supported bye allowable.Such costs will be equitably • improvements,and equipment.Also,see
significant amount of the indirect poets apportioned to all activities of the paragraph 42 for allowability of rental costs
incurred by the organization; organization.Income generated from any of for land.buildings,and equipment
(c)The direct cost activity is not pursued these activities will be credited to the cost 14.fines and penalties.Costs of fines and
primarily for the benefit of the Federal thereof unless such income has been penalties resulting from violations of,or
Government. Irrevocably set over to employee welfare failure of the organization to comply with
(3)In those instances where there is no organizations. I • Federal,State,and local laws and regulations
basis for determining the fair market value of 12 Entertalnment coats.Coats of are unallowable except when incurred,.o a
the service,rendered,the recipient and the amusement diversion.soda!activities, result of compliance with spedfic provisions
cognizant agency shall negotiate an ceremonials,and costs relating thereto,such of an award or Instructions in writing from
appropriate allocation of indirect cost to the as meals,lodging.rentals,transportation,and the awarding agency. -
servings. gratuities are unallowable(but bee 16,Piirtpe benefits.See paragraph ILL
(4)Where donated services directly benefit paragraphs 11 and 26). 16.Idle facilities and idle capacity.
a project supported by an sward the indirect 13.Equipment and other capital a.As used in this paragraph the following
cost allocated to the services will be expenditures. terms have the meanings set forth below:
considered as a part of the total costs tithe a.As used in this paragraph.the following (1)"Facilities"means land and buildings or
project Such indirect costs may be terms have the meanings set forth below: any portion thereof,equipment individually
�$—
•
48030 Federal Register / Vol. 45, No. 132 / Tuesday, July 8, 1980 I Notices
tangible capital (a)Types and extent of coverage shall be 21,Lasser on other awards.Any excise of l
or collectively,or any other tartgiin ccordano with sound business prectiee costs over insane on anyaward 4
asset leased by the bated and"(hither awned and the rates and premiums shall be unallowable es a cost of any other award.
or(2)"Idle
f le means
This includes,bet is not limited to.the
"Idle fad2ltla'means completely reiaonable under the circumstances. eootributed portion by reason
unused facilities that are excess to the • (b)Costs allowed for business interruptionorganisation'sa meets or any
organizatlon's current needs. or other similar insurance shall be limited to of cost sharing !� negotiation of lump
exclude coverage of management fees. undertecoveries through eg°
(3)"Iylopart meansfthe facilities.
isd ions sums for,or ceilings on.indirect costs.
capacity of pat used facilities.It the (c)Costs of Laurance or of say pia U.Maintenance and repair nests.Costs
difference between that which a facility for a reserve covering the risk of loss or incurred for necessary repair
repair.
could achieve under 100 per cent operating damage to Government property are upkeep of necessary
and maintenance,
time on a one-shift basis lase operating allowable only to the extent that the or upk ep Government property unless
interruptions resulting from time lost for organization U liable for such loss or damage. ( for)which neither add b
repairs.seta unsatisfactory materials,sad (d)provisions for a reserve under a self- otherwise provided
p setups, are allowable to the the permanent value of the property nor
other normal delays and the octant to white insurance ptypram appreciably prolong its intended life,but
the facility was actually used to meet extent that types of coverage,extent of It in an operating condition.are
demands during the accounting period.A coverage,rates,and premiums would have keep
e p it in anefficient incurred o e for improvements
it can be been allowed bed ithurance been purchasedbad Costs the rmanefo value of the
maybe used d which permanent mtiltishift Daaucarver, ravislon for
uormashown that this amount for uses,typeye could knownt cover the risks.tly D and equipment or appreciably
the of facility or which boy not becomestimatede
payablselnine
buildingsn their intended life shall be treated as
normally be expectedliabilities,which do lxcome payaD a ➢ ran h 13).
involved. more than one year after the provision is capital expenditures(see p gray
(4)"cosh ofs idle maintenance,
or idle ac air. made shall not exceed the present value of • Z3.Materials and su necessary to slies.The costs
of cot
meann costs. o maintenance, ts.S.. the liability. materials and supplies
housing. ent and other e.and depreciation
(a)�U of tnsurence on the lives of an award are allowable.Such costs should be
property taxes,n insurance, Pry trustees,officers,or other employees holding charged at their actual prices after deducting
or use The cost of idle positions of similar responsibilities are all cash discounts,trade discounts,rebates,
b. ble of facilities an owable only to the extent that the and allowances receivedorganization.
unallowable except to the extent that Withdrawals from general
insurance represents additional
(1)They are necessary ce meet compensation(see paragraph 6).The cost of stockrooms should be charged at cost under
fluctuations in worload:atmethod of pricing
(2)Although not necessary to meet each}nstasrsce when the organiation b any recognized trartsportatian
fluctuations in workload,they ware identified as the beneficiary is unallowable. consistently applied.Incomingf arterial
necessary when acquired and are now idle (3)Actual losses which could have been charges may be a proper part t as l
Mtn, covered by permissible insurance(through cost Materials and supplies charged
becausea
t of changesin program economicali the purchase of insurance or a self-insurance direct cost should include only the materials
effortspea o achieve more ina are unallowable unless expressly and supplies actually used for the
operations, c reorganization,not bee or program] performance of the contract or grant,and doe
other causes which could have hues provided for in the award.except t should be given for any excess
reasonably foreseen.Under the excepties (a)Costs incurred because of looses not coedit retaiany orx returned to
covered under nominal deductible fasmeno materials a supplies
stateda is this llo ablefor tear of bleidl coverage provided in keeping with sound vendors.
i of aim allowable for o ro excaed businesspractice are allowable. 24.Meetings,conferences.
period tune,ordinarily not to exceed one a,Costs associated with the conduct of
year.depending upon the initiative taken to (b)M�Qr less, and not covered tntnraaos. meetings,and conferences:and include the
use lease,or dispose of such facilities(but such as sr°ilage'breakage, facilities,meals,speakers'
see paragraphs 47.b.and d.). disappearance of supplies,which occur is the cost of renting
c.The costs of idle capacity are normal ordinary course of operations,ars allowable. fees,and the like.But see paragraph 12.
costs of doing business and are a factor in the b.!indemnification includes securine the Entertainment costs,and paragraph 20.
or indirect cost organization against liabilities to Participant support costs.
normal fluctuationsmpriodtoof usagepersons and any other loss or damage.not b.To the extent that these costs are
allowable,rats om period d theca ac ty le ate insurance or otherwise.The Identifiible with a particular cost objective.
reasonably
anticipated
the capacity s compensated bythe they should be charged to that objective.(See
anticipated to be aecasaary or Government is obligated to Indemnify are a D B.of Attachment A.)These costs
reasonable and Ls not alibied organization only to the extent expressly P ip P
was originally provided in the award are allowable provided that they meet the
to reduction sale,eliminationn cby with
soontdmi raising.and general tests of allowable,shows in
renting,or In accordance soon/ 19.Interest.fund �� Attachment A to this Circular.
bus
Widespread
ad Idle car or security h s� m a.Cores tamed�letetest ea borrowed • c.Corte of meetings and conferences held
entdeapraad Idle c+ong a throughout as et capital or temporary use of endowment to conduct the general administration tithe
havingentire
rub facility t among a exam of assets' organisation are allowable.
idl fubettatialtl the same fuactian may funds,however represented,area i unallowable. 23.Memberships,subscriptions,and
be idle facilities. b.Costs of organized fund raldng, professional activity costa
including financial campaign,endowment prod
1s.(Reservedpendsat research onddr►slcup�asatf drives,solicitation of gifts and bequests,and a.Cats of the organizations membership
�) in civic,business•technical and professional
la
Inaarrtmcy and iadamalf fmtlaa : -. similar axpetues incurred eoSe4S'to Hier � _
capital or obtain contrlbotioen are _ ' organizations ere allowable.
a.14ma-ma tedudes!neurones ranch the� � � b. of organisation's enbsaiphant�
organization is required to carry,or which le unallowable. •
to ark,Costs of thees•professional,and technical
approved,under the terms of the award and- a Costs of tn'retmaat counsel and staff civic,
business,
are allowable .
any other insurance which the organisation and similar ixperyes incurred solely to periodicals
enhance income from investments tarter - a Costa of attendance at meetings and
coed ct of In connection with the rag aph unallowable. conferences,sponsored by others when the
conduct tb operations.This �p a Fund raisins and investment ectlritiee primary purpose is the dissemination of
does not apply foro ie a whichrecitation!,cacapshall be allocated an appropriate share of technical information,are allowable.This
fringe benefits employees(see ParagtaPlE indirect cosh under the conditions described includes costs of meals,transportation,and •
g f.and ag(o)1 -in am B of Attachment A. other Items incidental to such attendance.
(1)Costs and insurance n required set 20.Labor��'ons costs.Cosh inclined hi 26.Organization costs.Expenditures.such
approved, maintained,pummel r therelations between as incorporation fees,brokers'fees,fees to
award are allowable. maintaining satisfactory mere.organisers or management
(2)Costs of Whet luau acts matnatned by. the organisation and its employees,including pro r manageme or
costa of labor manngeraent committees, consultants,attorneys
:the oral of its e o with the •
employee publications.and other related investment counselors,whether
in noeeedos
general conduct its operations ate ultra are allowable. r_ employees of the organisation,. .
allowable subiect to the following timatatldt activities wa e --
Federal Ruder f Vol. 45, No:132 ]Tuesday,-tuty-ft, 1-980 /.-Notices 48031
with establishment or tion of an 93.Preoward costs.Preaward costs a d
re Ice which the depreciation applicable to such
organisation.are unallowable exoept with • those incurred prior to the effective dale of property was Included.The amount of the
prior approval of the awarding agency. the award directly pursuant to the pin or loss to be included as a credit or
27.Overtime,extra-pay shift and • negotiation and to anticipation of the award charge to the appropriate post grouping(s)
tmulushift premiums.Premiums for overtime. where such costs is necessary to comply with shall be the difference between the amount
extra-pay shifts.and multishift work are the proposed delivery schedule or period of realized on the property and the
allowable only with the prior approval of the performance.Such costs are allowable only undepredated basis of the
awarding agency except: to the extent that they would have been (2)Gains and losses on�tion 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 inch the
accidents,natural disasters.breakdowns of the awarding agency. following conditions. .-
equipment.or occasional operational • 34.Professional service costs. (a)The pin or loss is processed through a
bottlenecks of a sporadic nature. a.Costs of professional and consultant depreciation reserve account and is reflected
b.When employees are performing indirect services rendered by persons who are in the depreciation allowable under
functions such es administration. members of a particular profession or posse's paragraP 9. -
maintenance.or accounting. a special skill,and who are not officers or (b)The property is given in exchange as
c.In the performance of tests,laboratory employees of the organisation,an allowable, Dan of the Purchase Price of a similar Item
procedures,or other similar 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 the depreciation cost basis of the
reasonably be interrupted or otherwise rendered and when not contingent upon DeW Item.
Completed. . . recovery of the costs from the Government. (c)A loss results from the failure to
d.When lower overall cost to the b.In determing the allowability of poets in maintain permissible insurance,except as
Government will result a particular case,no single factor or any otherwise provided in paragraph 18.a.(3).
28.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 use
publications are allowable as a neeeseary factors ars relevant: allowances in lien of depreciation in
part of research costs,where: (1)The nature and scope of the service accordance with paragraph 9.
a.The research papers report work 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 on all service,considering the organization'e dispositions shall be considered on a nee.
research papers published by the journal. capability In the particular area. by-cam or
s.
whether or not by Government-sponsored (3)The past pattern of such cats, . b.Gains sale orlo exs ao any nature t oth
author'. particularly in the yeah prior to Government from the or exchange of property hther
29 Participant support costs.Participant awards. than the property covered in paragraph a.
support coats are direct costs for items such (4)The impact of Government awards on above shall be excluded to computing sward
as stipends or subsistence allowances,travel the organiztion's business(La,what new 36°Dsts
allowances,and registration fees paid to or problems have arisen). a,Public
information a ne service ice costs include
on behalf of participants or trainees(but not (5)Whether the proportion of Government e• ts service news
employees)in connection with meetings, work to the organisation's total business is the aset associated other with pof infphormation
tion
conferences,symposia,or training projects. such as to influence the organization in favor releases,and forms of information
These costs are allowable with the prim of incurringthe cost particularlywhere the te(v)Inform
Such coats are normally incurred to:
D (1)inform or Instruct individuals,groups,or
approval of the awarding agency. services rendered are not of a continuing the general public.
30.Potent-costs. nature and have little relationship to work (2)Interest individuals or groups in
a.Costs of(I)preparing disclosures, under Government grants and contracts. participating In a service program of the
reports,and ether documents required by the (8)Whether the service can be performed organization.
award and of searching the art to the extend more economically by direct employment (3)Disseminate the results of sponsored
necessary to make such disclosures,(II) rather than ooAtracting. and noruponaored activities.
preparing documents and any other patent (7)The qualifications of the individual our b.Public information service costs are
costs in connection with the filing and concern rendering the service and the allowable as direct costs with the prior
prosecution of a United states patent customary fees charged,especially on non- approval of the awarding agency.Such costs
application where title or royalty-free license Government swards. are unallowable as indirect oats.
is required by the Government to be (8)Adequacy of the contractual agreement 37.Publication and printing costs.
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-making pleas work,
and copyright laws,regulations,clauses,and c.In addition to the factors 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 Me services mailingA.and general handling.
b.Cost of preparing disclosures,reports, available or rendered. b.Ifthese costs are not identifiable with a
and other documents and of searching the art d Cost of legal.accounting.and consulting particular cost objective,they should be
to the extent necessary to make disclosures. services,and related coats incurred in 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 c.Publication and printing costs are
filing and prosecuting any foreign patent Government,are unallowable.Coats of legal. unallowable as direct costs except with the
application,or(it)any United States patent accounting and consulting services,and prior approval of the awarding agency.
application,where the award does not related costs,incurred 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 28.
License to the Government,are unallowable' and reorganization,are unallowable unless 38-Rearrangement and alteration costs.
(also see paragraph 43). otherwise provided for in the award(but see Costs incurred for ordinary or normal
31.Pension plans.See paragraph e.g. paragraph 47e). . rearrangement and alteration of facilities are
32.Plant security costs.Necessary 35.Profits and losses on dispaitios of allowable.Special arrangement and
expenses incurred to comply with depreciable property or other capital pilots. alteration costs incurred specifically for the
Government security requirements or for a.(I)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.Costa incurred in
allowable. occur as credits or charges to cost groupings) the restoration or rehabilitation of the
—10— .
46032 Federal Reegtststr / VoL 4S, No. 132 / Tuesday, July 8, 1980 / Notices
organisation's facilities to approximately the control within 12 months after hire,the if any)U equal to 73 per cent or more of the
same condition existing immediately prior to organization shall refund or credit the economic life of the leased property,Le,the
commencement of Government awards,fair Government for Its share of the cost period the property is expected to be
wear and teei excepted are allowable. However,the coats of travel to an overseas economically usable by one or more users.
40.Reuniting costs The following locatio;shall be considered bevel costa in 43.Royalties and other costs for use of
recruiting costs are allowable cost of"help accordance with paragraph 50 and not patents and copyrights.
wanted"advertising operating costs of an relocation costs for the purpose of this a.Royalties on a patent or copyright or
employment office,coats of operating an paragraph if dependents are not permitted at amortization of the colt of acquiring by
educational testing program.travel expenses the location for any reason and the costs do purchase a copyright.patent or rights
including food and lodging of employees not include coats of transporting household thereto,necessary for the proper performance
while engaged In recruiting personneL travel gas. • of the award are allowable unless:
costs of applicants for interviews for d.The following costs related to relocation (i)The Government has a license or the
prospective employment and relocation caste are unallowable-. right to free use of the patent or copyright
incurred inddeat to recruitment of new (1)Fees and other coats associated with ' (2)The patent or copyright has been
employees(see paragraph 41c).Where the acquiring a new home., adjudicated to be invalid,or has been
organization.uses employment agencies, (2)A loss on the sale of a former home. administratively determined to be invalid.
costs not in excess of standard commercial (3)Continuing mortgage principal and (3)The patent or copyright is considered to
rates for such services are allowable. interest payments on a Dome being sold. be unenforceable.
41.Relocation costs. (4)Income taxes paid try an employes (4)The patent or copyright is expired.
a.Relocation costs are costs incident to the related to reimbursed rtacatim meta. b.Special care should be exercised in
permanent change of duty assignment(for as 4-Rental aster determining reasonableness where the
Indefinite period or for a stated period of not a.Subject to the limitations described bs royalties may have been arrived at as a result
less than 12 months)of an existing employee paragraphs b.through d.of this paragraph, of less then arm's length bargaining e.g.: '
or upon recruitment of a new employee rental costs an allowable to the extent that (1)Royalties paid to persons,including
Relocation costs are allowable,subject to the the rates ars reasonable in light of sutb corporations,affiliated with the organization.
limitation described in paragraphs b,e,and d factors as:rental costs of comparable (2)Royalties paid to unaffiliated parties.
below,provided that property,if any;market conditions in the including corporations,under an agreement
(1)The move is for the benefit of the area:alternatives available,and the type,life entered Into in contemplation that a
employer. expectancy.condition d vat Government award would be made.
(2)Reimbursement to the employee is in p b.Rental costs undo sale and leaseback (3)Royalties paid under an agreement
accordance with an established written entered into after an award Is made to an
policy consistently followed by the employer. arrangements are allowable allowed only up to the organization.
amount that would be allowed had the
(3)The reimbursement does not exceed the a In any case involving a patent d -
organization continued to own the pro
employee's actual(or reasonably estimated) copyright formerly owned by the
expenses a Rcatal costs under less-th.n_la organization.the amount of royalty allowed
leases are allowable only up to the amount
b.Allowable relocation costs for current that would be allowed had title to the should not exceed the cost which would have
employees are limited to the followings property vested in the organization For this been allowed had the organization retained
(1)The costs of transportation of the purpose,a less•than-arms-length lease is one title thereto.
employee,members of his immediate family under which one party to the lease agreement ""Severance p°>:
and his household.and personal effects to the is able to control or substantially influence a.Severance pay,also commonly referred
new location the actions of the other.Such(erases include. to as dismissal wages is a payment In
(2)The cost.of finding a new home.such but are not limited to those between 0) addition to regular salaries and wain,by
as advance trips by employees and spouses divisions of an organism non.(Li)osganinatiosta 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 toe officer,,directors,or members and ow on are allowable only to the extent that in each
maximum period of 30 days.including organization and a director,trustee,officer. case,it is required by(i)law.(ii)employer-
advance trip time. or key employee of the organization or his employee agreement Nil established policy
(3)Closing costs,such as brokerage,legal. immediate ramify either directly or through that constitutes,in effect an Implied
and appraisal feet,incident to the disposition corporauons,trusta,or similar arranpementa agreement on the organisation's part,or(Iv)
of the employee's former home.These costs. is which they bold a controlling intereei. . circumstance of the particular employment
together with those described in(4)below, d.Rental costs under leases which create a b.Costa of severance payments are divided •
are limited tog per cent of the sales price of material equity in the leased property are into two categories as follows:
the employee's former bona. allowable only up to the amount that would (1)Actual normal trnnover severance
(4)The continuing coats of ownership at be allowed had the organisation Forabased payment'shall be allocated to all activities;
' the vacant former horse after the settlement the property oo the data the Pore.agnemsai or,where the organization provides for a
or tease data of the employee's taw was executed;egg.,depreciation or use reserve for normal severances such method
permanent home,such as maintenance of allowances,maintenance,to:as,tasura ms will be acceptable if the charge to current
buildings and grounds(axcluslvs of dxiag alit but excluding interest expense cad other ' operations is reasonable in light of payments
expenses),utilities,taxes,and property unallowable costs.For this purpose.a actually made for normal severances ova:a
Insurance. material equity in the property exists If the representative past period.and if amounts
(5)Other necessary and reasonable • lease in noncanoelable or is cancelable only charged art allocated to all activities of the
expenses normally incident to relocatio . upon the occurrence of some remote organitatioa
such as the costs of cancelling an unexpired contingency and has one or more of no . .. (2)Abnormal or mass severance pay is of
lease,disconnecting and reinstalling following charederistla • • such a ccnnectural nature that measurement
household appliances,and purchasing (i)The organization has the right to of costa by means of an accrual will not
insurance against loss of or damages to purchase the property for a price which at the achieve equity to both parties.Thus,accrualsIli
personal property.The poet of cancelling ao beginning of the lease appears to be for this purpose are not allowable.However,
unexpired lease is limited to three times the substantially less than the probable fade the Government recognizes its obligation to
monthly realm market value at the time It is permitted to participate to the extent of its fair share.In
e Allowable relocation coats for new se the property(commonly called a any specs&payment Thus,allawability will
ace
employees are limited to those described m with a bargain purchase option); be considered on a case-by-ase basis is the
(1)and(2)of paragraph b.above.When (2)Title to the property passes to the event of occurrence.
relocation costs incurred incident to the organization at some time durlog or after the 45.Specialized service facilities.
recruitment of new employees have been ease period; a.The costs of services provided by '
allowed either as direct or Indirect cost aid' (3)The term of the lease(initial term plus complex or specialized facilities operated by
the employee resigns for mesons within hie' periods covered by bargain renewal options. the organization.such as electronic
—11—
Federal Register /Vol 45, No. 132 / Tuesday, ?a}y S. 1980 / Notices 48033
aural dice]sirs with the bask Oddities rectal ied m - -- -
ex computers and art. tfar the are Denims
met h Comer '+despite° Attachment A.The Indirect expense so
provided theos of eft fa b.or o et this
ensues a particular case all rt an mist allocated shall exclude the same and similar
the conditions of either c.at this egrets by the organization.certain seats
paragraph and.to addrtioa take sate sensual cannot be'1;o-rntin,vd immediately after the costs claimed directly or indirectly as
any items of income or Federal grandag that effective date of termination,each costs are settlement expenses.
quagenerally allowable within the limitations set elk Thmiru'r 1 and duX On costs.
A.E. �ttaap Lp sable credits ender paragraph forth in this heavier,scups that W'peck a.Coate of preparslioc and maintenance of
A.b ofTheA cbmsa A wets contia alter termirmination due to the s program of Instruction including but not
matD. emus of charged services.w� nt or failure of the aagenizalon limited to oo-the-lob,classroom.and
applicablelal must bebd o acingectly to d. tod sue peck costs shah be apprenticeship tretning,designed to incase
theservices
ri awards based of aimed tame unallowable. the vocational effectiveness of employees,
ratesat a set b the basis a ogyoch that
et . a.Lad of nsefel robe.boss of value including training materials,textbooks,
or smablie against
in methodology that(t)does of special mil_ machinery and ent • salaries of wages of trainees(excluding
activitiesct i discriminate thee gangs federally ding used x , tion which might arise
of organization,taeludiag user which was oat marg�ev to the a as a overtime compensation
and capital expenditure is era amoeba* therefrom),and(I)salaries of the director of
(ii)by the organisation for er only purposes to (1)Such special tooling,machinery,or training and staff when the training program
cote of ie motion.to recover only toe chai<a meat is not reasonably capable of mein Is conducted by the organisation or(li)
sees of the The ally of each kQ p • tuition and fees wham the training is in an
service shall consist normally of both Its the crier wart of the organisation -
direct costs and Its allocable share al all (2)The interest of the Government is institution not operated by the organisation.
protected by transfer of title or by other are allowable.
to past costs Advance agreements A pursuant -time education,et an
to paragraph A.S.of Attachmentthis si A an means deemed appropriate by the awardtttj undergraduate yr postgraduate college level
particularly the important i in this foratie>d a Y Including that penvidad at the organisation's
a Where costs incurred a service d.ltenPof troerts.Rental costs tinder
are not material.they may be allocated as unexpired leases de generally ellawable - own facilities,are allowable only when the
where riy shown to have beets • course ar degree pursued is relative to the
indirect Times.
reasonably necessary for the performance of geld in which the employee I.now working
a. gee to work,and
a.In general,taxes which the orgaarisation the terminated sward less the residual value or may reasonably be expected
is required to pay and whkb are paid or of such leases,if(I)(hre amount of secs rental are limited to:
aicrued in accordance with gensrslty claimed does tot exceed the reasonable nee (1)Tratniag matartala.
accepted accounting principles,and value of the property leased for the period of (2)Textbooks..
payments made to local governments in tin the sward and loch further period es may be (3)Fees charges by the educational
of taxes which are commensurate with the reasonable,and(i1)the organization makes institution n. charged by the educationallocal goverafaeat services received are all reasonable efforts to terminate,assign. ( )
allowable,except for(I)taxes from which settle,or otherwise reduce the cost of tech institution.or to lieu of tuition.Instructors'
exemptions are available to the organisation lease.There also may be included the cost of salaries and the related share of indirect
directly or which are availablee7osts of the educational institution to the
to the alterations of each leased property,provided thereof
thGone organization basednn i exemption afforded performance
url alterationsmceof the award.and and of�reeeonabis the the tuitint ont the sum which would have ben pad to the
the awarding
at and in the letter case when pa +n of the participating educational institution.
the xempts cartes available the restoration e tegatrsd by provisions (5)Salaries and related costs of instructors
necessarysme t on car h e,(L')'pedal who are employees of the organization.
assessments a land i)Federalrepresenta.Settl income taxse. ray allowable: employee for time spent attending classes
b.thAny refund of turn and any whir 1>�t� l.clerical,and einigat during working boors not to excess of 156
were
eerallowetion of interest thereon.which ( ) hours per year and only to the extent that
were allowed as eward'oosts,will be costs reasonably necessary for
credited either as a cost reduction or cash (a)The preparetioa and presentation 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
data with rasped to the working bouts,otherwise s�compensation
47.Termination coots.Termination of pip g portion of the award unless the is unallowable
awards generally need give rise to the ea ment of terminated a La. c.Costs of tuition,fees,training materials,
of coats.or the for special treatment termination is for default(See paragraph and textbooks(bet not subsistence,salary.or
costa,which would not have arisen had the of Anal L.OMB mat No.A-211 and otxer emoluments)of in connection with
award not been emsart
terminatedt Cost principleselow. The termination and setta>meotel full-time education,including that provided at
covering these used
are set fori with he(b) the organisation's own facilities,at e
They are to ibeo used in conjunction itCircular
In with the su Rear postgraduate(but cot undergraduate)college
other provisions of this Ciranlar in (2)Reasonable costa for the storage, poste
termination situations. transportation,protection,and disposition of level.are allowable only when the course or
provided by the Government or degree pursued s related to the Seld in which
a.Common usableeb The cost of items propertycquirefor the award.ex pp�t the employee is now working or may
reasonably •
rk shall
not on the mess the other acquired or proa are reimbursed reasonabl be expected to work,and only
work be allowable unless when grtintexs for
organization submits evidence that it would at a predetermined amount in accordancewhore tbe,cotU receive the prior approval of not retain such items at cost without with Attachment N 0I OI.IB Circular A-110. the awarding a&en Surh casts are limited
sustaining a loss.In deciding whether tech (3)Indirect costs related to salaries and to the costs attributable to a total period not
Items are reasonably usable on other work of wages incurred as settlement expenses in to exceed one school year for each employee
!subparagraphs(1)and of this paragraph. so trained.In unusual cases the period may
the icier organization,organization'sthz awarding agency ceshders
Norlly,suchcosts shall be limited be extended.
consider the e plans and ceders Normally, d.Croats of attendance of cep to 16 weeks
• for current and scheduled activity. to fringe tests'o�p�eon�. per es.rployec per year at specialized
Contemporaneousbythorganization
purchases of regarded immediate supervision. wider programs specifically designed to enhance
items by the organisation shall be I.Clmiau antler rub�o}rardi�aims or
as evidence that such items are reasonably snbawarda,including the allocable portion of the effectivenessc e of s executivesforsuch positions re
usable on the organization's other work.Any claims which are common to the award.and or to
acceptance of common items es allocable to to other work of the organization share of fees,training mks Such
clots textbookinclude
a�ao �llm
the terminated portion of the award shall be generally allowable.An appropriate
limited to the extent that the quantities of the organisation's indirect expense may be related charges.employees'salaries.
such items on hand.in transit,and on order allocated to the amount provided��t the subsistence,
under this and nd Ira do not Costs allowable
for
art in excess of the reasonable quantitative subcontractor/subg-an
requirements of other work. • amount allocated is otherwise consistent courses that are part of a degree-oriented
—12—
. r
48034 Federal Register / Vol. 45, No. 132 / Tuesday, July e, leflo I Notices
tion on the basis of work or time period Universities Research AssocieUoa
set which ab. allowable only to the benefited when appropriate.Advance Incorporated(National Acceleration Lab).
extent.Mart enforth in expense.and c.above. agreements are particularly important. Argonne,Illinois
e.depreciation
fair ntal. and normal P Universities Corporation for Atmospheric
depreciation or rental,on facilities a.Direct charges for foreign travelrosts are Rssearok Boulder.Colorado
owned or leased by the organization for allowable onlywhen the travel has received Nonprofit Insurance Companies such as Blue
trainingpurposes are allowable to the extent prior approval of the awarding agency.Each �v and ce Co pnicssuch
a
set forth In paragraphs 9,22.and 42. separate foreigntripmust be approved.For Other nonprofit BlueorganizationsShield
dOrganizations z tlated
f.Contributions or donations to purposes of this provision.foreign travel is Other
awarding agencies
educational or training institutions.Including defined as any travel outside of Canada and Qg Dec.awarding
ng gene eye sue)
the donation of facilities or other propertiaa. the United States and its territories andcar*„ �
and scholarships or fellowships,are possessions.Howevef,for an organization t
swallowable. located in foreign countries,the term"foreign
&Training and education costs In excess of travel"means travel outside that country.
those otherwise allowable under p r a be o wed � es No A-1221
b.end a of this paragraph
with prior approval of the awarding agency. Attachment c
•
To be considered for approval.the M INa
organization must demonstrate that to an Orman
fit L
costs are consistently neducation P
established trainingprogram. Aerospace Corporation.®Segundo.
and that the course or degree pursued is California
relative to the field in which the employee Is Argonne Universities Association.(bingo`
now working or may reasonably be expected Illinois
2c work. Associated Universities,incorporated
49.Transportation carts Transportation WashingtoaD.C.
costs include freight express,cartage,and Associated Universities for Research and
postage charges relating either to goods Astronomy,Tucson,Arlsoaa
purchased in process,or delivered Mime Atomic Casualty Commission.Washington.
costs are allowable.When such costs rarer D.C.
readily be identified with the Items involved Battelle Memorial Institute,Headquartered its
,they may be directly charged as Columbus.Ohio
strensportation costs or added to the poet of Brookhaven National Laboratory.Upton.
isuch items(see paragraph 23).Wbwe New York
'Identification with the materials receivedcats Center for Energy and Environmental
cannot readily be made.transportationResearch Energy
),(university of Puerto
may be charged to the appropriate indirect Rico)
cost accounts if the organization follows a Commonwealth of Puerto Rico,Charles Stark
!cosuistent equitable procedure in this Draper Laboratory,Incorporated
T es�p Trove/ �eet Cambridge,Massachusetts.Comparative
f
Animal Research Laboratory(CARL)
a Travel cosh are ae apemen for (University of Tennessee).Oakridge.
transportation.lodging tubsistesa,and Tennessee
related Items incurred by employees who are Environmental Institute of mk.bigasl.Aim
in travel status on official business of the Arbor,
organization.Travel costs are allowable Hanford Environmental Michigan Health Foundation.
subject to paragraphs b.through a.below. Richland Weshingtoo .
when they are directly attributable to these IIT Research Institute.Chicago,Minnie
work under an award orni tr incurred in institute for Defense Analysis.Arlington.
normal course of administration of the Virginia
oreanizatb.g,,,h o VirginiaDeen saw of Gas Technology,Chicago.Stookbasis,on a per diem charged
e or mileage basisbasis In taw Midwest Research Institute,Headquartered •
of actual cats incurred,or on a combination 63 Kan+°s City.Missouri
of the two,provided the method used results Mtge Corporation.Bedford.Massachusetts
Montana Energy Research�d Developmed
allowed chargesby consistent with those s renorgular
Institute.Inc.ICI).Butte.Montana
p the organisation in its tegnular National Radiological Astronomy
oparatleta. Observatory,Green Bank West Vtrglda
t The modatioa In andoel less than
between Erelsan Oeke *+Associated Universities.OahridS%
air accommodations than firstclase
r than rst is unallowable except Tennessee
Prot Maaa4eMent Corporation.O
when less than Qret�w air • geaseatea,
accommodations are not reasonably Mocks,Califoenls
Rand Corporation.Santa M
available to meetunecessary mission Rae/arch h Triangle Institute.Resear&
classequirements.ouch as where less than a Triangle Park,North Carolina
accommodations would r require duringResearchcircuitousrequire
unreasonable hours,(Ili)greatly Increase the York fiats AlbogomQtra.letuee
duration of the flight.(iv)result in additional Sandia Cotes
costs which would offset the tr insportatioa Mexico
•
ernResearch Institute,Btrml n.
savings,or(v)offer accommodations which Alabama
are not reasonably adequate for the medical l Research San Antodo.
needs of the traveler. _,�
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—3.3— ec.s. cover/ewer !rioting office : 1923 -391-as-ita4
I
EXHIBIT F
I II
II
■s Ordinance No. G19-93
qAN ORDINANCE
AMENDING CHAPTER 3.12 ENTITLED "COMMISSION ON HUMAN RELATIONS"
IJ
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS:
n Section 1. That Chapter 3. 12 entitled "Commission on Human
"�1 Relations" of the Elgin Municipal Code, 1976, as amended, be and is
hereby amended to read as follows:
q3.12.010 Created.
IIA commission on human relations is created.
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3.12.020 Declaration of policy.
n 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
II 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
q and assistance in progressive practices to keep peace and
good order, and private persons and groups may be
officially encouraged to promote tolerance, goodwill,
II • interfaith and interracial harmony between all people.
B. It is declared to be the public policy of the city to assure
full and equal opportunity to all residents of the city to
II 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, .
q 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 members-composition-terse-salary.
qA. " The human relations commission shall consist of up to tight
- 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,
handicap, education, welfare, labor, and management. There
IIshall be two •x officio members of the human relations
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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.
K. 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.
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 . I
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.
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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
1.1
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.
Geor VanDeVoorde, Mayor
•
Presented: May 12, 1993
Passed: May 12, 1993
Omnibus Vote: Yeas 7 Nays 0
Recorded: May 13, 1993
•
Published: May 13, 1993 .
Attest: •
Ae4-64 ALE e44-2„--
Dolonna Mecum, City Clerk
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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;
5. 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
clauses:
"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
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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 I
section of this chapter, shall be ' construed to prevent the
city manager or department heads from authorizing or doii.3
business with contractors or vendors for emergency services
or supplies.
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, may:
1. Cancel, terminate or suspend the contract in whole or
in part;
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
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
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