**RESEARCH AND RELATED (R&R)**

GENERAL TERMS AND CONDITIONS

# [General]{.smallcaps} 

Section.

1.  Purpose.

2.  Definitions.

3.  Reserved.

4.  Reserved.

5.  Subawards.

**[Pre‑Award Requirements]{.smallcaps}**

10. Purpose.

11. National Policy Requirements

12. Reserved.

13. Reserved.

14. Reserved.

15. Reserved.

16. Reserved.

17. Reserved.

# Financial and Program Management 

20. Purpose of financial and program management.

21. Standards for financial management systems.

22. Payment.

23. Cost sharing or matching.

24. Program income.

25. Revision of budget and program plans.

26. Non‑Federal audits.

27. Allowable Cost.

28. Period of Availability of Funds.

29. Reserved.

# Property Standards 

30. Purpose of property standards.

31. Insurance coverage.

32. Real property.

33. Federally-owned and exempt property.

34. Equipment.

35. Supplies and other expendable property.

36. Intangible property.

37. Property trust relationship.

# Procurement Standards 

40. Purpose of procurement standards.

# Reports and Records 

50. Purpose of reports and records.

51. Monitoring and reporting program performance.

52. Financial reporting.

53. Retention and access requirements for records.

**Termination and Enforcement**

60. Termination and enforcement in conformance with A-110

61. Unilateral Termination.

62\. Enforcement.

**[Closeout Requirements]{.smallcaps}**

70. Closeout in conformance with A-110

71. Closeout procedures.

72. Subsequent adjustments and continuing responsibilities.

73. Collection of amounts due.

**[Appendix]{.smallcaps}**

**[Appendix A \-- Contract Provisions]{.smallcaps}**

+-------------------------------------+--------------------------------+
| OMB CIRCULAR A-110                  | IMPLEMENTATION OF FEDERAL      |
|                                     | MANAGEMENT CIRCULARS           |
+=====================================+================================+
| **\_\_\_\_.1 Purpose**. This        | **1. Purpose.** These Research |
| Circular establishes uniform        | and Related (R&R) General      |
| administrative requirements for     | Terms and Conditions           |
| Federal grants and agreements       | incorporate the requirements   |
| awarded to institutions of higher   | of U. S. Office of Management  |
| education, hospitals, and other     | and Budget Circulars as they   |
| non‑profit organizations. Federal   | apply to grants made by        |
| awarding agencies shall not impose  | Federal awarding agencies to   |
| additional or inconsistent          | educational and non-profit     |
| requirements, except as provided in | organizations when             |
| Sections \_\_\_\_.4, and            | incorporated by reference or   |
| \_\_\_\_.14 or unless specifically  | included as part of the award. |
| required by Federal statute or      |                                |
| executive order. Non‑profit         |                                |
| organizations that implement        |                                |
| Federal programs for the States are |                                |
| also subject to State requirements. |                                |
+-------------------------------------+--------------------------------+
| \_\_\_.2 Definitions.               | 2\. **Definitions**. Terms     |
|                                     | used in these general terms    |
| \(a\) Accrued expenditures means    | and conditions have the        |
| the charges incurred by the         | meanings given in              |
| recipient during a given period     | section \_\_\_.2 of OMB        |
| requiring the provision of funds    | Circular A-110, with the       |
| for: (1) goods and other tangible   | following additions and        |
| property received; (2) services     | clarifications:                |
| performed by employees,             |                                |
| contractors, subrecipients, and     |                                |
| other payees; and, (3) other        |                                |
| amounts becoming owed under         |                                |
| programs for which no current       |                                |
| services or performance is          |                                |
| required.                           |                                |
+-------------------------------------+--------------------------------+
| \(b\) Accrued income means the sum  |                                |
| of: (1) earnings during a given     |                                |
| period from (i) services performed  |                                |
| by the recipient, and (ii) goods    |                                |
| and other tangible property         |                                |
| delivered to purchasers, and (2)    |                                |
| amounts becoming owed to the        |                                |
| recipient for which no current      |                                |
| services or performance is required |                                |
| by the recipient.                   |                                |
+-------------------------------------+--------------------------------+
| \(c\) Acquisition cost of equipment |                                |
| means the net invoice price of the  |                                |
| equipment, including the cost of    |                                |
| modifications, attachments,         |                                |
| accessories, or auxiliary apparatus |                                |
| necessary to make the property      |                                |
| usable for the purpose for which it |                                |
| was acquired. Other charges, such   |                                |
| as the cost of installation,        |                                |
| transportation, taxes, duty or      |                                |
| protective in-transit insurance,    |                                |
| shall be included or excluded from  |                                |
| the unit acquisition cost in        |                                |
| accordance with the recipient\'s    |                                |
| regular accounting practices.       |                                |
+-------------------------------------+--------------------------------+
| \(d\) Advance means a payment made  |                                |
| by Treasury check or other          |                                |
| appropriate payment mechanism to a  |                                |
| recipient upon its request either   |                                |
| before outlays are made by the      |                                |
| recipient or through the use of     |                                |
| predetermined payment schedules.    |                                |
+-------------------------------------+--------------------------------+
| \(e\) Award means financial         | \(a\) In lieu of the           |
| assistance that provides support or | definition given in paragraph  |
| stimulation to accomplish a public  | \_\_\_.2(e), the term "award"  |
| purpose. Awards include grants and  | means the award.               |
| other agreements in the form of     |                                |
| money or property in lieu of money, |                                |
| by the Federal Government to an     |                                |
| eligible recipient. The term does   |                                |
| not include: technical assistance,  |                                |
| which provides services instead of  |                                |
| money; other assistance in the form |                                |
| of loans, loan guarantees, interest |                                |
| subsidies, or insurance; direct     |                                |
| payments of any kind to             |                                |
| individuals; and, contracts which   |                                |
| are required to be entered into and |                                |
| administered under procurement laws |                                |
| and regulations.                    |                                |
+-------------------------------------+--------------------------------+
| \(f\) Cash contributions means the  |                                |
| recipient\'s cash outlay, including |                                |
| the outlay of money contributed to  |                                |
| the recipient by third parties.     |                                |
+-------------------------------------+--------------------------------+
| \(g\) Closeout means the process by |                                |
| which a Federal awarding agency     |                                |
| determines that all applicable      |                                |
| administrative actions and all      |                                |
| required work of the award have     |                                |
| been completed by the recipient and |                                |
| Federal awarding agency.            |                                |
+-------------------------------------+--------------------------------+
| \(h\) Contract means a procurement  |                                |
| contract under an award or          |                                |
| subaward, and a procurement         |                                |
| subcontract under a recipient\'s or |                                |
| subrecipient\'s contract.           |                                |
+-------------------------------------+--------------------------------+
| \(i\) Cost sharing or matching      |                                |
| means that portion of project or    |                                |
| program costs not borne by the      |                                |
| Federal Government.                 |                                |
+-------------------------------------+--------------------------------+
| \(j\) Date of completion means the  |                                |
| date on which all work under an     |                                |
| award is completed or the date on   |                                |
| the award document, or any          |                                |
| supplement or amendment thereto, on |                                |
| which Federal sponsorship ends.     |                                |
+-------------------------------------+--------------------------------+
| \(k\) Disallowed costs means those  |                                |
| charges to an award that the        |                                |
| Federal awarding agency determines  |                                |
| to be unallowable, in accordance    |                                |
| with the applicable Federal cost    |                                |
| principles or other terms and       |                                |
| conditions contained in the award.  |                                |
+-------------------------------------+--------------------------------+
| \(l\) Equipment means tangible      | \(b\) If the recipient         |
| nonexpendable personal property     | establishes a lower limit than |
| including exempt property charged   | \$5,000 for "equipment," as    |
| directly to the award having a      | permitted by the definition in |
| useful life of more than one year   | paragraph \_\_\_.2(l), then    |
| and an acquisition cost of \$5000   | items with acquisition costs   |
| or more per unit. However,          | less than \$5,000 are included |
| consistent with recipient policy,   | as equipment for the           |
| lower limits may be established.    | recipient's purposes only. The |
|                                     | Federal requirements for       |
|                                     | equipment, as specified in     |
|                                     | Article 33 or 34 of the award, |
|                                     | apply only to items with       |
|                                     | acquisition costs of \$5,000   |
|                                     | or more per unit.              |
+-------------------------------------+--------------------------------+
| \(m\) Excess property means         |                                |
| property under the control of any   |                                |
| Federal awarding agency that, as    |                                |
| determined by the head thereof, is  |                                |
| no longer required for its needs or |                                |
| the discharge of its                |                                |
| responsibilities.                   |                                |
+-------------------------------------+--------------------------------+
| \(n\) Exempt property means         |                                |
| tangible personal property acquired |                                |
| in whole or in part with Federal    |                                |
| funds, where the Federal awarding   |                                |
| agency has statutory authority to   |                                |
| vest title in the recipient without |                                |
| further obligation to the Federal   |                                |
| Government. An example of exempt    |                                |
| property authority is contained in  |                                |
| the Federal Grant and Cooperative   |                                |
| Agreement Act (31 U.S.C. 6306), for |                                |
| property acquired under an award to |                                |
| conduct basic or applied research   |                                |
| by a non-profit institution of      |                                |
| higher education or non-profit      |                                |
| organization whose principal        |                                |
| purpose is conducting scientific    |                                |
| research.                           |                                |
+-------------------------------------+--------------------------------+
| \(o\) Federal awarding agency means | \(c\) "Federal awarding        |
| the Federal agency that provides an | agency" as defined in          |
| award to the recipient.             | \_\_\_.2(o) means the Federal  |
|                                     | agency that made the award.    |
+-------------------------------------+--------------------------------+
| \(p\) Federal funds authorized      |                                |
| means the total amount of Federal   |                                |
| funds obligated by the Federal      |                                |
| Government for use by the           |                                |
| recipient. This amount may include  |                                |
| any authorized carryover of         |                                |
| unobligated funds from prior s when |                                |
| permitted by agency regulations or  |                                |
| agency implementing instructions.   |                                |
+-------------------------------------+--------------------------------+
| \(q\) Federal share of real         |                                |
| property, equipment, or supplies    |                                |
| means that percentage of the        |                                |
| property\'s acquisition costs and   |                                |
| any improvement expenditures paid   |                                |
| with Federal funds.                 |                                |
+-------------------------------------+--------------------------------+
| \(r\) Funding period means the      | \(d\) "Funding period" has the |
| period of time when Federal funding | meaning given in paragraph     |
| is available for obligation by the  | \_\_\_.2(r), with the          |
| recipient.                          | additional clarification that  |
|                                     | the term includes any          |
|                                     | extension of the expiration    |
|                                     | date of the award, such as a   |
|                                     | no‑cost extension authorized   |
|                                     | by paragraph (b) (3)of Article |
|                                     | 25.                            |
+-------------------------------------+--------------------------------+
| \(s\) Intangible property and debt  |                                |
| instruments means, but is not       |                                |
| limited to, trademarks, copyrights, |                                |
| patents and patent applications and |                                |
| such property as loans, notes and   |                                |
| other debt instruments, lease       |                                |
| agreements, stock and other         |                                |
| instruments of property ownership,  |                                |
| whether considered tangible or      |                                |
| intangible.                         |                                |
+-------------------------------------+--------------------------------+
| \(t\) Obligations means the amounts |                                |
| of orders placed, contracts and     |                                |
| grants awarded, services received   |                                |
| and similar transactions during a   |                                |
| given period that require payment   |                                |
| by the recipient during the same or |                                |
| a future period.                    |                                |
+-------------------------------------+--------------------------------+
| \(u\) Outlays or expenditures means |                                |
| charges made to the project or      |                                |
| program. They may be reported on a  |                                |
| cash or accrual basis. For reports  |                                |
| prepared on a cash basis, outlays   |                                |
| are the sum of cash disbursements   |                                |
| for direct charges for goods and    |                                |
| services, the amount of indirect    |                                |
| expense charged, the value of third |                                |
| party in-kind contributions applied |                                |
| and the amount of cash advances and |                                |
| payments made to subrecipients. For |                                |
| reports prepared on an accrual      |                                |
| basis, outlays are the sum of cash  |                                |
| disbursements for direct charges    |                                |
| for goods and services, the amount  |                                |
| of indirect expense incurred, the   |                                |
| value of in-kind contributions      |                                |
| applied, and the net increase (or   |                                |
| decrease) in the amounts owed by    |                                |
| the recipient for goods and other   |                                |
| property received, for services     |                                |
| performed by employees,             |                                |
| contractors, subrecipients and      |                                |
| other payees and other amounts      |                                |
| becoming owed under programs for    |                                |
| which no current services or        |                                |
| performance are required.           |                                |
+-------------------------------------+--------------------------------+
| \(v\) Personal property means       |                                |
| property of any kind except real    |                                |
| property. It may be tangible,       |                                |
| having physical existence, or       |                                |
| intangible, having no physical      |                                |
| existence, such as copyrights,      |                                |
| patents, or securities.             |                                |
+-------------------------------------+--------------------------------+
| \(w\) Prior approval means written  |                                |
| approval by an authorized official  |                                |
| evidencing prior consent.           |                                |
+-------------------------------------+--------------------------------+
| \(x\) Program income means gross    | \(e\) "Program income," as     |
| income earned by the recipient that | defined in paragraph           |
| is directly generated by a          | \_\_\_.2(x), does not include  |
| supported activity or earned as a   | the receipt of principal on    |
| result of the award (see exclusions | loans, rebates, credits,       |
| in paragraphs \_\_\_.24 (e) and     | discounts, etc., or interest   |
| (h)). Program income includes, but  | earned on any of them, unless  |
| is not limited to, income from fees | the agency‑specific            |
| for services performed, the use or  | requirements provide           |
| rental of real or personal property | otherwise.                     |
| acquired under federally-funded     |                                |
| projects, the sale of commodities   |                                |
| or items fabricated under an award, |                                |
| license fees and royalties on       |                                |
| patents and copyrights, and         |                                |
| interest on loans made with award   |                                |
| funds. Interest earned on advances  |                                |
| of Federal funds is not program     |                                |
| income. Except as otherwise         |                                |
| provided in Federal awarding agency |                                |
| regulations or the terms and        |                                |
| conditions of the award, program    |                                |
| income does not include the receipt |                                |
| of principal on loans, rebates,     |                                |
| credits, discounts, etc., or        |                                |
| interest earned on any of them.     |                                |
+-------------------------------------+--------------------------------+
| \(y\) Project costs means all       |                                |
| allowable costs, as set forth in    |                                |
| the applicable Federal cost         |                                |
| principles, incurred by a recipient |                                |
| and the value of the contributions  |                                |
| made by third parties in            |                                |
| accomplishing the objectives of the |                                |
| award during the project period.    |                                |
+-------------------------------------+--------------------------------+
| \(z\) Project period means the      |                                |
| period established in the award     |                                |
| document during which Federal       |                                |
| sponsorship begins and ends.        |                                |
+-------------------------------------+--------------------------------+
| (aa) Property means, unless         | \(f\) The term "property"      |
| otherwise stated, real property,    | includes supplies in addition  |
| equipment, intangible property and  | to other types of property     |
| debt instruments.                   | identified in the definition   |
|                                     | in paragraph \_\_\_.2(aa).     |
+-------------------------------------+--------------------------------+
| (bb) Real property means land,      |                                |
| including land improvements,        |                                |
| structures and appurtenances        |                                |
| thereto, but excludes movable       |                                |
| machinery and equipment.            |                                |
+-------------------------------------+--------------------------------+
| \(cc\) Recipient means an           | \(g\) In lieu of the           |
| organization receiving financial    | definition given at paragraph  |
| assistance directly from Federal    | \_\_\_.2(cc), the term         |
| awarding agencies to carry out a    | "recipient" means the          |
| project or program. The term        | organization that received the |
| includes public and private         | award.                         |
| institutions of higher education,   |                                |
| public and private hospitals, and   |                                |
| other quasi-public and private      |                                |
| non-profit organizations such as,   |                                |
| but not limited to, community       |                                |
| action agencies, research           |                                |
| institutes, educational             |                                |
| associations, and health centers.   |                                |
| The term may include commercial     |                                |
| organizations, foreign or           |                                |
| international organizations (such   |                                |
| as agencies of the United Nations)  |                                |
| which are recipients,               |                                |
| subrecipients, or contractors or    |                                |
| subcontractors of recipients or     |                                |
| subrecipients at the discretion of  |                                |
| the Federal awarding agency. The    |                                |
| term does not include               |                                |
| government-owned                    |                                |
| contractor-operated facilities or   |                                |
| research centers providing          |                                |
| continued support for               |                                |
| mission-oriented, large-scale       |                                |
| programs that are government-owned  |                                |
| or controlled, or are designated as |                                |
| federally-funded research and       |                                |
| development centers.                |                                |
+-------------------------------------+--------------------------------+
| (dd) Research and development means |                                |
| all research activities, both basic |                                |
| and applied, and all development    |                                |
| activities that are supported at    |                                |
| universities, colleges, and other   |                                |
| non-profit institutions.            |                                |
| \"Research\" is defined as a        |                                |
| systematic study directed toward    |                                |
| fuller scientific knowledge or      |                                |
| understanding of the subject        |                                |
| studied. \"Development\" is the     |                                |
| systematic use of knowledge and     |                                |
| understanding gained from research  |                                |
| directed toward the production of   |                                |
| useful materials, devices, systems, |                                |
| or methods, including design and    |                                |
| development of prototypes and       |                                |
| processes. The term research also   |                                |
| includes activities involving the   |                                |
| training of individuals in research |                                |
| techniques where such activities    |                                |
| utilize the same facilities as      |                                |
| other research and development      |                                |
| activities and where such           |                                |
| activities are not included in the  |                                |
| instruction function.               |                                |
+-------------------------------------+--------------------------------+
| (ee) Small awards means a grant or  |                                |
| cooperative agreement not exceeding |                                |
| the small purchase threshold fixed  |                                |
| at 41 U.S.C. 403(11) (currently     |                                |
| \$25,000).                          |                                |
+-------------------------------------+--------------------------------+
| (ff) Subaward means an award of     | \(h\) In lieu of the           |
| financial assistance in the form of | definition given in paragraph  |
| money, or property in lieu of       | \_\_\_.2(ff), the term         |
| money, made under an award by a     | "subaward" means an award of   |
| recipient to an eligible            | financial assistance in the    |
| subrecipient or by a subrecipient   | form of money, or property in  |
| to a lower tier subrecipient. The   | lieu of money, made under an   |
| term includes financial assistance  | award by a recipient to an     |
| when provided by any legal          | eligible subrecipient or by a  |
| agreement, even if the agreement is | subrecipient to a lower tier   |
| called a contract, but does not     | subrecipient. The term         |
| include procurement of goods and    | includes financial assistance  |
| services nor does it include any    | when provided by any legal     |
| form of assistance which is         | agreement, even if the         |
| excluded from the definition of     | agreement is called a          |
| \"award\" in paragraph (e).         | contract, but does not include |
|                                     | procurement of goods and       |
|                                     | services nor does it include:  |
|                                     | technical assistance, which    |
|                                     | provides services instead of   |
|                                     | money; other assistance in the |
|                                     | form of loans, loan            |
|                                     | guarantees, interest           |
|                                     | subsidies, or insurance;       |
|                                     | direct payments of any kind to |
|                                     | individuals; and, contracts    |
|                                     | which are required to be       |
|                                     | entered into and administered  |
|                                     | under procurement laws and     |
|                                     | regulations                    |
+-------------------------------------+--------------------------------+
| (gg) Subrecipient means the legal   | \(i\) The term "subrecipient," |
| entity to which a subaward is made  | as defined in paragraph        |
| and which is accountable to the     | \_\_\_.2(gg) includes the      |
| recipient for the use of the funds  | types of organizations shown   |
| provided. The term may include      | for the Federal awarding       |
| foreign or international            | agency in the R&R General      |
| organizations (such as agencies of  | Terms and Conditions Subaward  |
| the United Nations) at the          | Matrix found at the website    |
| discretion of the Federal awarding  | This document will be          |
| agency.                             | developed after receipt of     |
|                                     | comments on the R&R General    |
|                                     | Terms and Conditions. To view  |
|                                     | a sample of what this might    |
|                                     | look like, see the document    |
|                                     | currently in use by the        |
|                                     | Federal Demonstration          |
|                                     | Partnership at:                |
|                                     | http://www.                    |
|                                     | nsf.gov/pubs/fdp/fdpappa02.pdf |
+-------------------------------------+--------------------------------+
| (hh) Supplies means all personal    |                                |
| property excluding equipment,       |                                |
| intangible property, and debt       |                                |
| instruments as defined in this      |                                |
| section, and inventions of a        |                                |
| contractor conceived or first       |                                |
| actually reduced to practice in the |                                |
| performance of work under a funding |                                |
| agreement (\"subject inventions\"), |                                |
| as defined in 37 CFR part 401,      |                                |
| \"Rights to Inventions Made by      |                                |
| Nonprofit Organizations and Small   |                                |
| Business Firms Under Government     |                                |
| Grants, Contracts, and Cooperative  |                                |
| Agreements.\"                       |                                |
+-------------------------------------+--------------------------------+
| \(ii\) Suspension means an action   |                                |
| by a Federal awarding agency that   |                                |
| temporarily withdraws Federal       |                                |
| sponsorship under an award, pending |                                |
| corrective action by the recipient  |                                |
| or pending a decision to terminate  |                                |
| the award by the Federal awarding   |                                |
| agency. Suspension of an award is a |                                |
| separate action from suspension     |                                |
| under Federal agency regulations    |                                |
| implementing E.O.s 12549 and 12689, |                                |
| \"Debarment and Suspension.\"       |                                |
+-------------------------------------+--------------------------------+
| (jj) Termination means the          |                                |
| cancellation of Federal             |                                |
| sponsorship, in whole or in part,   |                                |
| under an agreement at any time      |                                |
| prior to the date of completion.    |                                |
+-------------------------------------+--------------------------------+
| (kk) Third party in-kind            |                                |
| contributions means the value of    |                                |
| non-cash contributions provided by  |                                |
| non-Federal third parties. Third    |                                |
| party in-kind contributions may be  |                                |
| in the form of real property,       |                                |
| equipment, supplies and other       |                                |
| expendable property, and the value  |                                |
| of goods and services directly      |                                |
| benefiting and specifically         |                                |
| identifiable to the project or      |                                |
| program.                            |                                |
+-------------------------------------+--------------------------------+
| (ll) Unliquidated obligations, for  |                                |
| financial reports prepared on a     |                                |
| cash basis, means the amount of     |                                |
| obligations incurred by the         |                                |
| recipient that have not been paid.  |                                |
| For reports prepared on an accrued  |                                |
| expenditure basis, they represent   |                                |
| the amount of obligations incurred  |                                |
| by the recipient for which an       |                                |
| outlay has not been recorded.       |                                |
+-------------------------------------+--------------------------------+
| \(mm\) Unobligated balance means    |                                |
| the portion of the funds authorized |                                |
| by the Federal awarding agency that |                                |
| has not been obligated by the       |                                |
| recipient and is determined by      |                                |
| deducting the cumulative            |                                |
| obligations from the cumulative     |                                |
| funds authorized.                   |                                |
+-------------------------------------+--------------------------------+
| (nn) Unrecovered indirect cost      |                                |
| means the difference between the    |                                |
| amount awarded and the amount which |                                |
| could have been awarded under the   |                                |
| recipient\'s approved negotiated    |                                |
| indirect cost rate.                 |                                |
+-------------------------------------+--------------------------------+
| (oo) Working capital advance means  |                                |
| a procedure where by funds are      |                                |
| advanced to the recipient to cover  |                                |
| its estimated disbursement needs    |                                |
| for a given initial period.         |                                |
+-------------------------------------+--------------------------------+
| \_\_\_\_.3 Effect on other          | 3\. **Reserved**               |
| issuances.                          |                                |
+-------------------------------------+--------------------------------+
| \_\_\_\_.4 Deviations               | 4\. **Deviations.** Any        |
|                                     | request by the recipient for   |
|                                     | waiver or deviation from any   |
|                                     | provision of either these      |
|                                     | general terms and conditions   |
|                                     | or the agency specific         |
|                                     | requirements shall be          |
|                                     | submitted to the awarding      |
|                                     | agency\'s designated           |
|                                     | representative identified in   |
|                                     | the agency specific            |
|                                     | requirements. Any request by   |
|                                     | the recipient for a waiver or  |
|                                     | deviation from any special     |
|                                     | condition attached to this     |
|                                     | award shall be submitted to    |
|                                     | the cognizant awarding agency  |
|                                     | official for this particular   |
|                                     | award (usually the Grants      |
|                                     | Officer or Contracting Officer |
|                                     | who signed the award on behalf |
|                                     | of the awarding agency).       |
+-------------------------------------+--------------------------------+
| \_\_\_\_.5 Subawards                | 5\. **Subawards**. Section 5   |
|                                     | of OMB Circular A-110 has the  |
| Unless sections of this Circular    | following clarification: The   |
| specifically exclude subrecipients  | applicable provisions for      |
| from coverage, the provisions of    | subawards are described in the |
| this Circular shall be applied to   | R&R General Terms and          |
| subrecipients performing work under | Conditions Subaward Matrix     |
| awards if such subrecipients are    | found at the following         |
| institutions of higher education,   | website: This document will be |
| hospitals or other non‑profit       | developed after receipt of     |
| organizations. State and local      | comments on the R&R General    |
| government subrecipients are        | Terms and Conditions. To view  |
| subject to the provisions of        | a sample of what this might    |
| regulations implementing the grants | look like, see the document    |
| management common rule, \`\`Uniform | currently in use by the        |
| Administrative Requirements for     | Federal Demonstration          |
| Grants and Cooperative Agreements   | Partnership at:                |
| to State and Local Governments,\'\' | http://www.                    |
| published at 53 FR 8034 (3/11/88).  | nsf.gov/pubs/fdp/fdpappa02.pdf |
+-------------------------------------+--------------------------------+
|                                     |                                |
+-------------------------------------+--------------------------------+
|                                     |                                |
+-------------------------------------+--------------------------------+
| SUBPART B -- Pre-Award Requirements | **II. PRE-AWARD REQUIREMENTS** |
|                                     |                                |
|                                     | 10\. **Purpose**. The          |
|                                     | requirements in Sections       |
|                                     | \_\_\_.10 through \_\_\_.17 of |
|                                     | OMB Circular A-110 are not     |
|                                     | incorporated into these        |
|                                     | General Terms and Conditions,  |
|                                     | except that Article 11         |
|                                     | addresses national policy      |
|                                     | requirements.                  |
|                                     |                                |
|                                     | 11\. **Assurances**. By        |
|                                     | signing the agreement or       |
|                                     | accepting funds under the      |
|                                     | agreement, the recipient       |
|                                     | assures that it will comply    |
|                                     | with the applicable provisions |
|                                     | for national policy            |
|                                     | requirements found in the R&R  |
|                                     | General Terms and Conditions   |
|                                     | National Policy Requirements   |
|                                     | Matrix found at the following  |
|                                     | website: This document will be |
|                                     | developed after receipt of     |
|                                     | comments on the R&R General    |
|                                     | Terms and Conditions. To view  |
|                                     | a sample of what this might    |
|                                     | look like, see the document    |
|                                     | currently in use by the        |
|                                     | Federal Demonstration          |
|                                     | Partnership at:                |
|                                     | http://www.                    |
|                                     | nsf.gov/pubs/fdp/fdpappb02.pdf |
|                                     |                                |
|                                     | Should an applicable national  |
|                                     | requirement be missing from    |
|                                     | the matrix, recipients and     |
|                                     | subrecipients are nevertheless |
|                                     | responsible for compliance     |
|                                     | with applicable national       |
|                                     | policy requirements.           |
+-------------------------------------+--------------------------------+
| SUBPART C - Post-Award Requirements | # III. POST-AWARD REQUIREMENTS |
|                                     |                                |
|                                     | Post‑award requirements in     |
|                                     | these General Terms and        |
|                                     | Conditions implement the       |
|                                     | provisions in Subpart C of OMB |
|                                     | Circular A‑110. The numbering  |
|                                     | of the articles in these       |
|                                     | General Terms and Conditions   |
|                                     | therefore parallels the        |
|                                     | numbering of the Circular's    |
|                                     | provisions (e.g., Article 21   |
|                                     | in this document implements    |
|                                     | section \_\_\_.21 of OMB       |
|                                     | Circular A‑110).               |
|                                     |                                |
|                                     | #                              |
+-------------------------------------+--------------------------------+
| Financial and Program Management    | # III.A. FI                    |
|                                     | NANCIAL AND PROGRAM MANAGEMENT |
| \_\_\_.20 Purpose of financial and  |                                |
| program management. Sections        | 20\. **Purpose of financial    |
| \_\_\_.21 through \_\_\_.28         | and program                    |
| prescribe standards for financial   | management**[.]{.underline}    |
| management systems, methods for     | Articles 21 through 29 reflect |
| making payments and rules for:      | Federal Awarding Agency        |
| satisfying cost sharing and         | implementation of Sections     |
| matching requirements, accounting   | \_\_.21 through \_\_.29 of OMB |
| for program income, budget revision | Circular A-110.                |
| approvals, making audits,           |                                |
| determining allowability of cost,   |                                |
| and establishing fund availability. |                                |
+-------------------------------------+--------------------------------+
| \_\_\_.21 Standards for financial   | # 21. Sta                      |
| management systems.                 | ndards for financial managemen |
|                                     | t systems. The recipient's fin |
| \(a\) Federal awarding agencies     | ancial management system shall |
| shall require recipients to relate  |  meet the standards specified  |
| financial data to performance data  | in paragraph (b) of section \_ |
| and develop unit cost information   | \_\_.21 of OMB Circular A-110. |
| whenever practical.                 |                                |
|                                     |                                |
| \(b\) Recipients\' financial        |                                |
| management systems shall provide    |                                |
| for the following.                  |                                |
|                                     |                                |
| \(1\) Accurate, current and         |                                |
| complete disclosure of the          |                                |
| financial results of each           |                                |
| federally-sponsored project or      |                                |
| program in accordance with the      |                                |
| reporting requirements set forth in |                                |
| Section \_\_\_.52. If a Federal     |                                |
| awarding agency requires reporting  |                                |
| on an accrual basis from a          |                                |
| recipient that maintains its        |                                |
| records on other than an accrual    |                                |
| basis, the recipient shall not be   |                                |
| required to establish an accrual    |                                |
| accounting system. These recipients |                                |
| may develop such accrual data for   |                                |
| its reports on the basis of an      |                                |
| analysis of the documentation on    |                                |
| hand.                               |                                |
|                                     |                                |
| \(2\) Records that identify         |                                |
| adequately the source and           |                                |
| application of funds for            |                                |
| federally-sponsored activities.     |                                |
| These records shall contain         |                                |
| information pertaining to Federal   |                                |
| awards, authorizations,             |                                |
| obligations, unobligated balances,  |                                |
| assets, outlays, income and         |                                |
| interest.                           |                                |
|                                     |                                |
| \(3\) Effective control over and    |                                |
| accountability for all funds,       |                                |
| property and other assets.          |                                |
| Recipients shall adequately         |                                |
| safeguard all such assets and       |                                |
| assure they are used solely for     |                                |
| authorized purposes.                |                                |
|                                     |                                |
| \(4\) Comparison of outlays with    |                                |
| budget amounts for each award.      |                                |
| Whenever appropriate, financial     |                                |
| information should be related to    |                                |
| performance and unit cost data.     |                                |
|                                     |                                |
| \(5\) Written procedures to         |                                |
| minimize the time elapsing between  |                                |
| the transfer of funds to the        |                                |
| recipient from the U.S. Treasury    |                                |
| and the issuance or redemption of   |                                |
| checks, warrants or payments by     |                                |
| other means for program purposes by |                                |
| the recipient. To the extent that   |                                |
| the provisions of the Cash          |                                |
| Management Improvement Act (CMIA)   |                                |
| (Pub. L. 101-453) govern, payment   |                                |
| methods of State agencies,          |                                |
| instrumentalities, and fiscal       |                                |
| agents shall be consistent with     |                                |
| CMIA Treasury-State Agreements or   |                                |
| the CMIA default procedures         |                                |
| codified at 31 CFR part 205,        |                                |
| \"Withdrawal of Cash from the       |                                |
| Treasury for Advances under Federal |                                |
| Grant and Other Programs.\"         |                                |
|                                     |                                |
| \(6\) Written procedures for        |                                |
| determining the reasonableness,     |                                |
| allocability and allowability of    |                                |
| costs in accordance with the        |                                |
| provisions of the applicable        |                                |
| Federal cost principles and the     |                                |
| terms and conditions of the award.  |                                |
|                                     |                                |
| \(7\) Accounting records including  |                                |
| cost accounting records that are    |                                |
| supported by source documentation.  |                                |
|                                     |                                |
| \(c\) Where the Federal Government  |                                |
| guarantees or insures the repayment |                                |
| of money borrowed by the recipient, |                                |
| the Federal awarding agency, at its |                                |
| discretion, may require adequate    |                                |
| bonding and insurance if the        |                                |
| bonding and insurance requirements  |                                |
| of the recipient are not deemed     |                                |
| adequate to protect the interest of |                                |
| the Federal Government.             |                                |
|                                     |                                |
| \(d\) The Federal awarding agency   |                                |
| may require adequate fidelity bond  |                                |
| coverage where the recipient lacks  |                                |
| sufficient coverage to protect the  |                                |
| Federal Government\'s interest.     |                                |
|                                     |                                |
| \(e\) Where bonds are required in   |                                |
| the situations described above, the |                                |
| bonds shall be obtained from        |                                |
| companies holding certificates of   |                                |
| authority as acceptable sureties,   |                                |
| as prescribed in 31 CFR part 223,   |                                |
| \"Surety Companies Doing Business   |                                |
| with the United States.\"           |                                |
+-------------------------------------+--------------------------------+
| \_\_\_.22 Payment.                  | 22\. **Payment**. Section      |
|                                     | \_\_\_.22 of OMB Circular      |
| \(a\) Payment methods shall         | A‑110 governs the Federal      |
| minimize the time elapsing between  | awarding agency's and          |
| the transfer of funds from the      | recipient's responsibilities   |
| United States Treasury and the      | concerning payments,with the   |
| issuance or redemption of checks,   | following clarifications:      |
| warrants, or payment by other means |                                |
| by the recipients. Payment methods  | \(a\) Payments will be made in |
| of State agencies or                | advance, subject to the        |
| instrumentalities shall be          | conditions described in        |
| consistent with Treasury-State CMIA | paragraph (b) of section       |
| agreements or default procedures    | \_\_\_.22, unless the Federal  |
| codified at 31 CFR part 205.        | awarding agency provides       |
|                                     | otherwise in the               |
| \(b\) Recipients are to be paid in  | agency‑specific terms and      |
| advance, provided they maintain or  | conditions or the award        |
| demonstrate the willingness to      | document.                      |
| maintain:                           |                                |
|                                     | \(b\) With respect to          |
| \(1\) written procedures that       | paragraph (l) of section       |
| minimize the time elapsing between  | \_\_\_.22, the complete        |
| the transfer of funds and           | address for remitting checks   |
| disbursement by the recipient, and  | for interest earned on Federal |
|                                     | advances is Department of      |
| \(2\) financial management systems  | Health and Human Services,     |
| that meet the standards for fund    | Payment Management System,     |
| control and accountability as       | P.O. Box 6021, Rockville, MD   |
| established in Section \_\_\_.21.   | 20852.                         |
| Cash advances to a recipient        |                                |
| organization shall be limited to    | > \(1\) In keeping with        |
| the minimum amounts needed and be   | > Electronic Funds Transfer    |
| timed to be in accordance with the  | > rules (31 CFR part 206),     |
| actual, immediate cash requirements | > interest should be remitted  |
| of the recipient organization in    | > to the HHS Payment           |
| carrying out the purpose of the     | > Management System through an |
| approved program or project. The    | > electronic medium such as    |
| timing and amount of cash advances  | > the FEDWIR Deposit System.   |
| shall be as close as is             | > Electronic remittances       |
| administratively feasible to the    | > should be in the format and  |
| actual disbursements by the         | > should include any data that |
| recipient organization for direct   | > are specified by the HHS as  |
| program or project costs and the    | > being necessary to           |
| proportionate share of any          | > facilitate direct deposit in |
| allowable indirect costs.           | > HHS\' account at the         |
|                                     | > Department of the Treasury.  |
| \(c\) Whenever possible, advances   | >                              |
| shall be consolidated to cover      | > \(2\) Recipients that do not |
| anticipated cash needs for all      | > have electronic remittance   |
| awards made by the Federal awarding | > capability should send a     |
| agency to the recipient.            | > check to the address in      |
|                                     | > section (b) above.           |
| \(1\) Advance payment mechanisms    |                                |
| include, but are not limited to,    | #                              |
| Treasury check and electronic funds |                                |
| transfer.                           |                                |
|                                     |                                |
| \(2\) Advance payment mechanisms    |                                |
| are subject to 31 CFR part 205.     |                                |
|                                     |                                |
| \(3\) Recipients shall be           |                                |
| authorized to submit requests for   |                                |
| advances and reimbursements at      |                                |
| least monthly when electronic fund  |                                |
| transfers are not used.             |                                |
|                                     |                                |
| \(d\) Requests for Treasury check   |                                |
| advance payment shall be submitted  |                                |
| on SF-270, \"Request for Advance or |                                |
| Reimbursement,\" or other forms as  |                                |
| may be authorized by OMB. This form |                                |
| is not to be used when Treasury     |                                |
| check advance payments are made to  |                                |
| the recipient automatically through |                                |
| the use of a predetermined payment  |                                |
| schedule or if precluded by special |                                |
| Federal awarding agency             |                                |
| instructions for electronic funds   |                                |
| transfer.                           |                                |
|                                     |                                |
| \(e\) Reimbursement is the          |                                |
| preferred method when the           |                                |
| requirements in paragraph (b)       |                                |
| cannot be met. Federal awarding     |                                |
| agencies may also use this method   |                                |
| on any construction agreement, or   |                                |
| if the major portion of the         |                                |
| construction project is             |                                |
| accomplished through private market |                                |
| financing or Federal loans, and the |                                |
| Federal assistance constitutes a    |                                |
| minor portion of the project.       |                                |
|                                     |                                |
| \(1\) When the reimbursement method |                                |
| is used, the Federal awarding       |                                |
| agency shall make payment within 30 |                                |
| days after receipt of the billing,  |                                |
| unless the billing is improper.     |                                |
|                                     |                                |
| \(2\) Recipients shall be           |                                |
| authorized to submit request for    |                                |
| reimbursement at least monthly when |                                |
| electronic funds transfers are not  |                                |
| used.                               |                                |
|                                     |                                |
| \(f\) If a recipient cannot meet    |                                |
| the criteria for advance payments   |                                |
| and the Federal awarding agency has |                                |
| determined that reimbursement is    |                                |
| not feasible because the recipient  |                                |
| lacks sufficient working capital,   |                                |
| the Federal awarding agency may     |                                |
| provide cash on a working capital   |                                |
| advance basis. Under this           |                                |
| procedure, the Federal awarding     |                                |
| agency shall advance cash to the    |                                |
| recipient to cover its estimated    |                                |
| disbursement needs for an initial   |                                |
| period generally geared to the      |                                |
| awardee\'s disbursing cycle.        |                                |
| Thereafter, the Federal awarding    |                                |
| agency shall reimburse the          |                                |
| recipient for its actual cash       |                                |
| disbursements. The working capital  |                                |
| advance method of payment shall not |                                |
| be used for recipients unwilling or |                                |
| unable to provide timely advances   |                                |
| to their subrecipient to meet the   |                                |
| subrecipient\'s actual cash         |                                |
| disbursements.                      |                                |
|                                     |                                |
| \(g\) To the extent available,      |                                |
| recipients shall disburse funds     |                                |
| available from repayments to and    |                                |
| interest earned on a revolving      |                                |
| fund, program income, rebates,      |                                |
| refunds, contract settlements,      |                                |
| audit recoveries and interest       |                                |
| earned on such funds before         |                                |
| requesting additional cash          |                                |
| payments.                           |                                |
|                                     |                                |
| \(h\) Unless otherwise required by  |                                |
| statute, Federal awarding agencies  |                                |
| shall not withhold payments for     |                                |
| proper charges made by recipients   |                                |
| at any time during the project      |                                |
| period unless (1) or (2) apply.     |                                |
|                                     |                                |
| \(1\) A recipient has failed to     |                                |
| comply with the project objectives, |                                |
| the terms and conditions of the     |                                |
| award, or Federal reporting         |                                |
| requirements.                       |                                |
|                                     |                                |
| \(2\) The recipient or subrecipient |                                |
| is delinquent in a debt to the      |                                |
| United States as defined in OMB     |                                |
| Circular A-129, \"Managing Federal  |                                |
| Credit Programs.\" Under such       |                                |
| conditions, the Federal awarding    |                                |
| agency may, upon reasonable notice, |                                |
| inform the recipient that payments  |                                |
| shall not be made for obligations   |                                |
| incurred after a specified date     |                                |
| until the conditions are corrected  |                                |
| or the indebtedness to the Federal  |                                |
| Government is liquidated.           |                                |
|                                     |                                |
| \(i\) Standards governing the use   |                                |
| of banks and other institutions as  |                                |
| depositories of funds advanced      |                                |
| under awards are as follows.        |                                |
|                                     |                                |
| \(1\) Except for situations         |                                |
| described in paragraph (i)(2),      |                                |
| Federal awarding agencies shall not |                                |
| require separate depository         |                                |
| accounts for funds provided to a    |                                |
| recipient or establish any          |                                |
| eligibility requirements for        |                                |
| depositories for funds provided to  |                                |
| a recipient. However, recipients    |                                |
| must be able to account for the     |                                |
| receipt, obligation and expenditure |                                |
| of funds.                           |                                |
|                                     |                                |
| \(2\) Advances of Federal funds     |                                |
| shall be deposited and maintained   |                                |
| in insured accounts whenever        |                                |
| possible.                           |                                |
|                                     |                                |
| \(j\) Consistent with the national  |                                |
| goal of expanding the opportunities |                                |
| for women-owned and minority-owned  |                                |
| business enterprises, recipients    |                                |
| shall be encouraged to use women-   |                                |
| owned and minority-owned banks (a   |                                |
| bank which is owned at least 50     |                                |
| percent by women or minority group  |                                |
| members).                           |                                |
|                                     |                                |
| \(k\) Recipients shall maintain     |                                |
| advances of Federal funds in        |                                |
| interest bearing accounts, unless   |                                |
| (1), (2) or (3) apply.              |                                |
|                                     |                                |
| \(1\) The recipient receives less   |                                |
| than \$120,000 in Federal awards    |                                |
| per year.                           |                                |
|                                     |                                |
| \(2\) The best reasonably available |                                |
| interest bearing account would not  |                                |
| be expected to earn interest in     |                                |
| excess of \$250 per year on Federal |                                |
| cash balances.                      |                                |
|                                     |                                |
| \(3\) The depository would require  |                                |
| an average or minimum balance so    |                                |
| high that it would not be feasible  |                                |
| within the expected Federal and     |                                |
| non-Federal cash resources.         |                                |
|                                     |                                |
| \(l\) For those entities where CMIA |                                |
| and its implementing regulations do |                                |
| not apply, interest earned on       |                                |
| Federal advances deposited in       |                                |
| interest bearing accounts shall be  |                                |
| remitted annually to Department of  |                                |
| Health and Human Services, Payment  |                                |
| Management System, Rockville, MD    |                                |
| 20852. Interest amounts up to \$250 |                                |
| per year may be retained by the     |                                |
| recipient for administrative        |                                |
| expense. State universities and     |                                |
| hospitals shall comply with CMIA,   |                                |
| as it pertains to interest. If an   |                                |
| entity subject to CMIA uses its own |                                |
| funds to pay pre-award costs for    |                                |
| discretionary awards without prior  |                                |
| written approval from the Federal   |                                |
| awarding agency, it waives its      |                                |
| right to recover the interest under |                                |
| CMIA.                               |                                |
|                                     |                                |
| \(m\) Except as noted elsewhere in  |                                |
| this Circular, only the following   |                                |
| forms shall be authorized for the   |                                |
| recipients in requesting advances   |                                |
| and reimbursements. Federal         |                                |
| agencies shall not require more     |                                |
| than an original and two copies of  |                                |
| these forms.                        |                                |
|                                     |                                |
| \(1\) SF-270, Request for Advance   |                                |
| or Reimbursement. Each Federal      |                                |
| awarding agency shall adopt the     |                                |
| SF-270 as a standard form for all   |                                |
| nonconstruction programs when       |                                |
| electronic funds transfer or        |                                |
| predetermined advance methods are   |                                |
| not used. Federal awarding          |                                |
| agencies, however, have the option  |                                |
| of using this form for construction |                                |
| programs in lieu of the SF-271,     |                                |
| \"Outlay Report and Request for     |                                |
| Reimbursement for Construction      |                                |
| Programs.\"                         |                                |
|                                     |                                |
| \(2\) SF-271, Outlay Report and     |                                |
| Request for Reimbursement for       |                                |
| Construction Programs. Each Federal |                                |
| awarding agency shall adopt the     |                                |
| SF-271 as the standard form to be   |                                |
| used for requesting reimbursement   |                                |
| for construction programs. However, |                                |
| a Federal awarding agency may       |                                |
| substitute the SF-270 when the      |                                |
| Federal awarding agency determines  |                                |
| that it provides adequate           |                                |
| information to meet Federal needs.  |                                |
+-------------------------------------+--------------------------------+
| \_\_\_.23 Cost sharing or matching. | 23\. **Cost sharing or         |
|                                     | matching**. Section \_\_\_.23  |
| \(a\) All contributions, including  | of OMB Circular A‑110 governs  |
| cash and third party in-kind, shall | the allowability and valuation |
| be accepted as part of the          | of third party in‑kind and     |
| recipient\'s cost sharing or        | recipient contributions toward |
| matching when such contributions    | cost sharing or matching, with |
| meet all of the following criteria. | the following clarifications:  |
|                                     |                                |
| \(1\) Are verifiable from the       | \(a\) Should Section \_\_\_.23 |
| recipient\'s records.               | be amended to specify          |
|                                     | documentation requirements for |
| \(2\) Are not included as           | different types of cost        |
| contributions for any other         | sharing (e.g., mandatory,      |
| federally-assisted project or       | voluntary, or excess           |
| program.                            | voluntary), these              |
|                                     | documentation requirements are |
| \(3\) Are necessary and reasonable  | hereby incorporated into the   |
| for proper and efficient            | R&R General Terms and          |
| accomplishment of project or        | Conditions                     |
| program objectives.                 |                                |
|                                     | \(b\) The recipient may        |
| \(4\) Are allowable under the       | include unrecovered indirect   |
| applicable cost principles.         | costs as part of cost sharing  |
|                                     | or matching.                   |
| \(5\) Are not paid by the Federal   |                                |
| Government under another award,     | \(c\) Certain other costs or   |
| except where authorized by Federal  | valuation methods require      |
| statute to be used for cost sharing | approval of the Federal        |
| or matching.                        | awarding agency, in accordance |
|                                     | with paragraphs (c) and (g)    |
| \(6\) Are provided for in the       | (2) of section \_\_\_.23.      |
| approved budget when required by    |                                |
| the Federal awarding agency.        | \(d\) Full value of equipment  |
|                                     | or other capital assets and    |
| \(7\) Conform to other provisions   | fair rental charges for land   |
| of this Circular, as applicable.    | may be allowed, instead of     |
|                                     | only depreciation or use       |
| \(b\) Unrecovered indirect costs    | charges, provided that the     |
| may be included as part of cost     | Federal awarding agency has    |
| sharing or matching only with the   | approved the charges.          |
| prior approval of the Federal       |                                |
| awarding agency.                    |                                |
|                                     |                                |
| \(c\) Values for recipient          |                                |
| contributions of services and       |                                |
| property shall be established in    |                                |
| accordance with the applicable cost |                                |
| principles. If a Federal awarding   |                                |
| agency authorizes recipients to     |                                |
| donate buildings or land for        |                                |
| construction/facilities acquisition |                                |
| projects or long-term use, the      |                                |
| value of the donated property for   |                                |
| cost sharing or matching shall be   |                                |
| the lesser of (1) or (2).           |                                |
|                                     |                                |
| \(1\) The certified value of the    |                                |
| remaining life of the property      |                                |
| recorded in the recipient\'s        |                                |
| accounting records at the time of   |                                |
| donation.                           |                                |
|                                     |                                |
| \(2\) The current fair market       |                                |
| value. However, when there is       |                                |
| sufficient justification, the       |                                |
| Federal awarding agency may approve |                                |
| the use of the current fair market  |                                |
| value of the donated property, even |                                |
| if it exceeds the certified value   |                                |
| at the time of donation to the      |                                |
| project.                            |                                |
|                                     |                                |
| \(d\) Volunteer services furnished  |                                |
| by professional and technical       |                                |
| personnel, consultants, and other   |                                |
| skilled and unskilled labor may be  |                                |
| counted as cost sharing or matching |                                |
| if the service is an integral and   |                                |
| necessary part of an approved       |                                |
| project or program. Rates for       |                                |
| volunteer services shall be         |                                |
| consistent with those paid for      |                                |
| similar work in the recipient\'s    |                                |
| organization. In those instances in |                                |
| which the required skills are not   |                                |
| found in the recipient              |                                |
| organization, rates shall be        |                                |
| consistent with those paid for      |                                |
| similar work in the labor market in |                                |
| which the recipient competes for    |                                |
| the kind of services involved. In   |                                |
| either case, paid fringe benefits   |                                |
| that are reasonable, allowable, and |                                |
| allocable may be included in the    |                                |
| valuation.                          |                                |
|                                     |                                |
| \(e\) When an employer other than   |                                |
| the recipient furnishes the         |                                |
| services of an employee, these      |                                |
| services shall be valued at the     |                                |
| employee\'s regular rate of pay     |                                |
| (plus an amount of fringe benefits  |                                |
| that are reasonable, allowable, and |                                |
| allocable, but exclusive of         |                                |
| overhead costs), provided these     |                                |
| services are in the same skill for  |                                |
| which the employee is normally      |                                |
| paid.                               |                                |
|                                     |                                |
| \(f\) Donated supplies may include  |                                |
| such items as expendable equipment, |                                |
| office supplies, laboratory         |                                |
| supplies or workshop and classroom  |                                |
| supplies. Value assessed to donated |                                |
| supplies included in the cost       |                                |
| sharing or matching share shall be  |                                |
| reasonable and shall not exceed the |                                |
| fair market value of the property   |                                |
| at the time of the donation.        |                                |
|                                     |                                |
| \(g\) The method used for           |                                |
| determining cost sharing or         |                                |
| matching for donated equipment,     |                                |
| buildings and land for which title  |                                |
| passes to the recipient may differ  |                                |
| according to the purpose of the     |                                |
| award, if (1) or (2) apply.         |                                |
|                                     |                                |
| \(1\) If the purpose of the award   |                                |
| is to assist the recipient in the   |                                |
| acquisition of equipment, buildings |                                |
| or land, the total value of the     |                                |
| donated property may be claimed as  |                                |
| cost sharing or matching.           |                                |
|                                     |                                |
| \(2\) If the purpose of the award   |                                |
| is to support activities that       |                                |
| require the use of equipment,       |                                |
| buildings or land, normally only    |                                |
| depreciation or use charges for     |                                |
| equipment and buildings may be      |                                |
| made. However, the full value of    |                                |
| equipment or other capital assets   |                                |
| and fair rental charges for land    |                                |
| may be allowed, provided that the   |                                |
| Federal awarding agency has         |                                |
| approved the charges.               |                                |
|                                     |                                |
| \(h\) The value of donated property |                                |
| shall be determined in accordance   |                                |
| with the usual accounting policies  |                                |
| of the recipient, with the          |                                |
| following qualifications.           |                                |
|                                     |                                |
| \(1\) The value of donated land and |                                |
| buildings shall not exceed its fair |                                |
| market value at the time of         |                                |
| donation to the recipient as        |                                |
| established by an independent       |                                |
| appraiser (e.g., certified real     |                                |
| property appraiser or General       |                                |
| Services Administration             |                                |
| representative) and certified by a  |                                |
| responsible official of the         |                                |
| recipient.                          |                                |
|                                     |                                |
| \(2\) The value of donated          |                                |
| equipment shall not exceed the fair |                                |
| market value of equipment of the    |                                |
| same age and condition at the time  |                                |
| of donation.                        |                                |
|                                     |                                |
| \(3\) The value of donated space    |                                |
| shall not exceed the fair rental    |                                |
| value of comparable space as        |                                |
| established by an independent       |                                |
| appraisal of comparable space and   |                                |
| facilities in a privately-owned     |                                |
| building in the same locality.      |                                |
|                                     |                                |
| \(4\) The value of loaned equipment |                                |
| shall not exceed its fair rental    |                                |
| value.                              |                                |
|                                     |                                |
| \(5\) The following requirements    |                                |
| pertain to the recipient\'s         |                                |
| supporting records for in-kind      |                                |
| contributions from third parties.   |                                |
|                                     |                                |
| \(i\) Volunteer services shall be   |                                |
| documented and, to the extent       |                                |
| feasible, supported by the same     |                                |
| methods used by the recipient for   |                                |
| its own employees.                  |                                |
|                                     |                                |
| \(ii\) The basis for determining    |                                |
| the valuation for personal service, |                                |
| material, equipment, buildings and  |                                |
| land shall be documented.           |                                |
+-------------------------------------+--------------------------------+
| \_\_\_.24 Program income.           | 24\. **Program income**. The   |
|                                     | use and disposition of program |
| \(a\) Federal awarding agencies     | income is governed by section  |
| shall apply the standards set forth | \_\_\_.24 of OMB Circular      |
| in this section in requiring        | A‑110. Unless the              |
| recipient organizations to account  | agency-specific requirements   |
| for program income related to       | of the award specify           |
| projects financed in whole or in    | otherwise:                     |
| part with Federal funds.            |                                |
|                                     | \(a\) The additive method of   |
| \(b\) Except as provided in         | paragraph \_\_\_.24(b)(1) will |
| paragraph (h) below, program income | be used to dispose of program  |
| earned during the project period    | income, in accordance with     |
| shall be retained by the recipient  | paragraph \_\_\_.24(d).        |
| and, in accordance with Federal     |                                |
| awarding agency regulations or the  | \(b\) The recipient will have  |
| terms and conditions of the award,  | no obligation to the Federal   |
| shall be used in one or more of the | Government for program income  |
| ways listed in the following.       | earned after the end of the    |
|                                     | project period, in accordance  |
| \(1\) Added to funds committed to   | with paragraph \_\_\_.24(e).   |
| the project by the Federal awarding |                                |
| agency and recipient and used to    | \(c\) The recipient will have  |
| further eligible project or program | no obligation to the Federal   |
| objectives.                         | Government for program income  |
|                                     | earned from license fees and   |
| \(2\) Used to finance the           | royalties for copyrighted      |
| non-Federal share of the project or | material, in accordance with   |
| program.                            | paragraph \_\_\_.24(h).        |
|                                     |                                |
| \(3\) Deducted from the total       |                                |
| project or program allowable cost   |                                |
| in determining the net allowable    |                                |
| costs on which the Federal share of |                                |
| costs is based.                     |                                |
|                                     |                                |
| \(c\) When an agency authorizes the |                                |
| disposition of program income as    |                                |
| described in paragraphs (b)(1) or   |                                |
| (b)(2), program income in excess of |                                |
| any limits stipulated shall be used |                                |
| in accordance with paragraph        |                                |
| (b)(3).                             |                                |
|                                     |                                |
| \(d\) In the event that the Federal |                                |
| awarding agency does not specify in |                                |
| its regulations or the terms and    |                                |
| conditions of the award how program |                                |
| income is to be used, paragraph     |                                |
| (b)(3) shall apply automatically to |                                |
| all projects or programs except     |                                |
| research. For awards that support   |                                |
| research, paragraph (b)(1) shall    |                                |
| apply automatically unless the      |                                |
| awarding agency indicates in the    |                                |
| terms and conditions another        |                                |
| alternative on the award or the     |                                |
| recipient is subject to special     |                                |
| award conditions, as indicated in   |                                |
| Section \_\_\_.14.                  |                                |
|                                     |                                |
| \(e\) Unless Federal awarding       |                                |
| agency regulations or the terms and |                                |
| conditions of the award provide     |                                |
| otherwise, recipients shall have no |                                |
| obligation to the Federal           |                                |
| Government regarding program income |                                |
| earned after the end of the project |                                |
| period.                             |                                |
|                                     |                                |
| \(f\) If authorized by Federal      |                                |
| awarding agency regulations or the  |                                |
| terms and conditions of the award,  |                                |
| costs incident to the generation of |                                |
| program income may be deducted from |                                |
| gross income to determine program   |                                |
| income, provided these costs have   |                                |
| not been charged to the award.      |                                |
|                                     |                                |
| \(g\) Proceeds from the sale of     |                                |
| property shall be handled in        |                                |
| accordance with the requirements of |                                |
| the Property Standards (See         |                                |
| Sections \_\_\_.30 through          |                                |
| \_\_\_.37).                         |                                |
|                                     |                                |
| \(h\) Unless Federal awarding       |                                |
| agency regulations or the terms and |                                |
| condition of the award provide      |                                |
| otherwise, recipients shall have no |                                |
| obligation to the Federal           |                                |
| Government with respect to program  |                                |
| income earned from license fees and |                                |
| royalties for copyrighted material, |                                |
| patents, patent applications,       |                                |
| trademarks, and inventions produced |                                |
| under an award. However, Patent and |                                |
| Trademark Amendments (35 U.S.C. 18) |                                |
| apply to inventions made under an   |                                |
| experimental, developmental, or     |                                |
| research award.                     |                                |
+-------------------------------------+--------------------------------+
| \_\_\_.25 Revision of budget and    | 25\. **Revision of budget and  |
| program plans.                      | program plans**.               |
|                                     |                                |
| \(a\) The budget plan is the        | \(a\) The budget plan is the   |
| financial expression of the project | financial expression of the    |
| or program as approved during the   | project or program as approved |
| award process. It may include       | during the award process. The  |
| either the Federal and non-Federal  | approved budget includes the   |
| share, or only the Federal share,   | Federal share of project costs |
| depending upon Federal awarding     | and that portion of the        |
| agency requirements. It shall be    | non‑Federal share of project   |
| related to performance for program  | costs, if any, that the        |
| evaluation purposes whenever        | recipient and the Federal      |
| appropriate.                        | awarding agency formally agree |
|                                     | upon as cost sharing (see      |
| \(b\) Recipients are required to    | paragraph (a) of Article 23).  |
| report deviations from budget and   |                                |
| program plans, and request prior    | \(b\) The recipient must       |
| approvals for budget and program    | obtain the prior written       |
| plan revisions, in accordance with  | approval of the Federal        |
| this section.                       | awarding agency before making  |
|                                     | any of the following project   |
| \(c\) For nonconstruction awards,   | changes:                       |
| recipients shall request prior      |                                |
| approvals from Federal awarding     | > \(1\) [A change in scope or  |
| agencies for one or more of the     | > objectives]{.underline} of   |
| following program or budget related | > the project as stated in the |
| reasons.                            | > approved application or      |
|                                     | > approved modifications       |
| \(1\) Change in the scope or the    | > thereto, such as a change in |
| objective of the project or program | > the phenomenon(a) under      |
| (even if there is no associated     | > study, even if there is no   |
| budget revision requiring prior     | > associated budget revision.  |
| written approval).                  | >                              |
|                                     | > \(2\) [The absence or change |
| \(2\) Change in a key person        | > of the Principal             |
| specified in the application or     | > Investigator/Project         |
| award document.                     | > Director                     |
|                                     | > (PI/PD)]{.underline}. If the |
| \(3\) The absence for more than     | > approved PI/PD severs his or |
| three months, or a 25 percent       | > her connection with the      |
| reduction in time devoted to the    | > recipient or otherwise       |
| project, by the approved project    | > relinquishes active          |
| director or principal investigator. | > direction of the project     |
|                                     | > (either permanently or for a |
| \(4\) The need for additional       | > continuous period of more    |
| Federal funding.                    | > than 3 months or a 25        |
|                                     | > percent reduction in time    |
| \(5\) The transfer of amounts       | > devoted to the project),     |
| budgeted for indirect costs to      | > then the recipient must      |
| absorb increases in direct costs,   | > either:                      |
| or vice versa, if approval is       |                                |
| required by the Federal awarding    | \(i\) Appoint a replacement    |
| agency.                             | PI/PD with the approval of the |
|                                     | awarding agency;               |
| \(6\) The inclusion, unless waived  |                                |
| by the Federal awarding agency, of  | > \(ii\) Seek and receive      |
| costs that require prior approval   | > prior approval from the      |
| in accordance with OMB Circular     | > awarding agency for the      |
| A-21, \"Cost Principles for         | > reduction of time devoted to |
| Educational Institutions,\" OMB     | > the project; or              |
| Circular A-122, \"Cost Principles   |                                |
| for Non-Profit Organizations,\" or  | \(iii\) Relinquish the award   |
| 45 CFR part 74 Appendix E,          | (in which case the award will  |
| \"Principles for Determining Costs  | be terminated by mutual        |
| Applicable to Research and          | agreement, in accordance with  |
| Development under Grants and        | Article 61).                   |
| Contracts with Hospitals,\" or 48   |                                |
| CFR part 31, \"Contract Cost        | > \(3\) [The need for          |
| Principles and Procedures,\" as     | > additional federal           |
| applicable.                         | > funding]{.underline}. The    |
|                                     | > maximum obligation of the    |
| \(7\) The transfer of funds         | > Federal awarding agency to   |
| allotted for training allowances    | > the recipient is the amount  |
| (direct payment to trainees) to     | > indicated in the award as    |
| other categories of expense.        | > obligated by that agency.    |
|                                     | > Nothing in this Article or   |
| \(8\) Unless described in the       | > in the other requirements of |
| application and funded in the       | > the award requires the       |
| approved awards, the subaward,      | > awarding agency to make any  |
| transfer or contracting out of any  | > additional award of funds or |
| work under an award. This provision | > limits its discretion with   |
| does not apply to the purchase of   | > respect to the amount of     |
| supplies, material, equipment or    | > funding to be provided for   |
| general support services.           | > the same or any other        |
|                                     | > purpose.                     |
| \(d\) No other prior approval       | >                              |
| requirements for specific items may | > \(4\) [The transfer, by      |
| be imposed unless a deviation has   | > contract or other means, of  |
| been approved by OMB.               | > a significant part of the    |
|                                     | > research or substantive      |
| \(e\) Except for requirements       | > programmatic                 |
| listed in paragraphs (c)(1) and     | > effort]{.underline}, unless  |
| (c)(4) of this section, Federal     | > described in the approved    |
| awarding agencies are authorized,   | > application or approved      |
| at their option, to waive           | > modifications to the award.  |
| cost-related and administrative     | > The recipient must submit a  |
| prior written approvals required by | > justification, a description |
| this Circular and OMB Circulars     | > of the scientific/technical  |
| A-21 and A-122. Such waivers may    | > impact on the project, and a |
| include authorizing recipients to   | > budget estimate to the       |
| do any one or more of the           | > cognizant Federal awarding   |
| following.                          | > agency official.             |
|                                     |                                |
| \(1\) Incur pre-award costs 90      | \(c\) All prior approvals      |
| calendar days prior to award or     | required in OMB Circulars A-21 |
| more than 90 calendar days with the | and A-122 , except those       |
| prior approval of the Federal       | waived in subparagraphs (1) -- |
| awarding agency. All pre-award      | (6) of this Article, and in    |
| costs are incurred at the           | Article 27, must be obtained.  |
| recipient\'s risk (i.e., the        | The recipient is authorized to |
| Federal awarding agency is under no | do any one or more of the      |
| obligation to reimburse such costs  | following:                     |
| if for any reason the recipient     |                                |
| does not receive an award or if the | > \(1\) Incur pre‑award costs  |
| award is less than anticipated and  | > 90 calendar days prior to    |
| inadequate to cover such costs).    | > award (or more than 90       |
|                                     | > calendar days with the prior |
| \(2\) Initiate a one-time extension | > approval of the Federal      |
| of the expiration date of the award | > awarding agency). Pre-award  |
| of up to 12 months unless one or    | > expenditures prior to        |
| more of the following conditions    | > funding of an increment      |
| apply. For one-time extensions, the | > within a multiple-year       |
| recipient must notify the Federal   | > project, including any       |
| awarding agency in writing with the | > optional years, are not      |
| supporting reasons and revised      | > subject to this limitation   |
| expiration date at least 10 days    | > or approval requirement.     |
| before the expiration date          | >                              |
| specified in the award. This        | > All costs are incurred at    |
| one-time extension may not be       | > the recipient\'s risk (i.e., |
| exercised merely for the purpose of | > the Federal awarding agency  |
| using unobligated balances.         | > is under no obligation to    |
|                                     | > reimburse such costs if for  |
| \(i\) The terms and conditions of   | > any reason the recipient     |
| award prohibit the extension.       | > does not receive an award or |
|                                     | > if the award is less than    |
| \(ii\) The extension requires       | > anticipated and inadequate   |
| additional Federal funds.           | > to cover such costs).        |
|                                     | >                              |
| \(iii\) The extension involves any  | > \(2\) Initiate a one‑time    |
| change in the approved objectives   | > extension of the expiration  |
| or scope of the project.            | > date of the award of up to   |
|                                     | > 12 months unless one or more |
| \(3\) Carry forward unobligated     | > of the following conditions  |
| balances to subsequent funding      | > applies:                     |
| periods.                            |                                |
|                                     | \(i\) The agency-specific      |
| \(4\) For awards that support       | requirements of the award      |
| research, unless the Federal        | prohibit the extension         |
| awarding agency provides otherwise  |                                |
| in the award or in the agency\'s    | \(ii\) The extension requires  |
| regulations, the prior approval     | additional Federal funds.      |
| requirements described in paragraph |                                |
| (e) are automatically waived (i.e., | \(iii\) The extension involves |
| recipients need not obtain such     | any change in the approved     |
| prior approvals) unless one of the  | objectives or scope of the     |
| conditions included in paragraph    | project.                       |
| (e)(2) applies.                     |                                |
|                                     | > \(3\) For one‑time           |
| \(f\) The Federal awarding agency   | > extensions, the recipient    |
| may, at its option, restrict the    | > must notify the Federal      |
| transfer of funds among direct cost | > awarding agency in writing   |
| categories or programs, functions   | > with the supporting reasons  |
| and activities for awards in which  | > and revised expiration date  |
| the Federal share of the project    | > at least 10 days before the  |
| exceeds \$100,000 and the           | > expiration date specified in |
| cumulative amount of such transfers | > the award. This one‑time     |
| exceeds or is expected to exceed 10 | > extension may not be         |
| percent of the total budget as last | > exercised merely for the     |
| approved by the Federal awarding    | > purpose of using unobligated |
| agency. No Federal awarding agency  | > balances.                    |
| shall permit a transfer that would  | >                              |
| cause any Federal appropriation or  | > \(4\) Carry forward          |
| part thereof to be used for         | > unobligated balances to      |
| purposes other than those           | > subsequent funding periods.  |
| consistent with the original intent | > Any unobligated balance of   |
| of the appropriation.               | > funds which remains at the   |
|                                     | > end of any funding period,   |
| \(g\) All other changes to          | > except the final funding     |
| nonconstruction budgets, except for | > period of the project, shall |
| the changes described in paragraph  | > be carried over to the next  |
| (j), do not require prior approval. | > funding period, and may be   |
|                                     | > used to defray costs of any  |
| \(h\) For construction awards,      | > funding period of the        |
| recipients shall request prior      | > project in addition to the   |
| written approval promptly from      | > current year\'s funding.     |
| Federal awarding agencies for       | > Since the carryover of       |
| budget revisions whenever (1), (2)  | > unobligated balances is      |
| or (3) apply.                       | > automatic, no separate or    |
|                                     | > specific awarding agency     |
| \(1\) The revision results from     | > prior approval shall be      |
| changes in the scope or the         | > required to authorize use of |
| objective of the project or         | > the funds.                   |
| program.                            | >                              |
|                                     | > \(5\) [The inclusion of      |
| \(2\) The need arises for           | > costs that require the       |
| additional Federal funds to         | > Federal awarding agency's    |
| complete the project.               | > prior approval under the     |
|                                     | > applicable cost              |
| \(3\) A revision is desired which   | > principles]{.underline}.     |
| involves specific costs for which   | > Applicable cost principles   |
| prior written approval requirements | > depend upon the type of      |
| may be imposed consistent with      | > organization, as described   |
| applicable OMB cost principles      | > in section \_\_\_.27 of OMB  |
| listed in Section \_\_\_.27.        | > Circular A-110. Note that    |
|                                     | > the Federal awarding agency  |
| \(i\) No other prior approval       | > gives its approval for the   |
| requirements for specific items may | > inclusion of certain costs   |
| be imposed unless a deviation has   | > for which the agency's prior |
| been approved by OMB.               | > approval is required by the  |
|                                     | > applicable cost principles,  |
| \(j\) When a Federal awarding       | > as detailed in Article 27.   |
| agency makes an award that provides |                                |
| support for both construction and   | \(6\) The transfer of amounts  |
| nonconstruction work, the Federal   | budgeted for indirect costs to |
| awarding agency may require the     | absorb increases in direct     |
| recipient to request prior approval | costs, or vice versa, if       |
| from the Federal awarding agency    | approval is required by the    |
| before making any fund or budget    | Federal awarding agency.       |
| transfers between the two types of  |                                |
| work supported.                     | > \(7\) The transfer of funds  |
|                                     | > allotted for training        |
| \(k\) For both construction and     | > allowances (direct payment   |
| nonconstruction awards, Federal     | > to trainees) to other        |
| awarding agencies shall require     | > categories of expense.       |
| recipients to notify the Federal    |                                |
| awarding agency in writing promptly | \(d\) The recipient must       |
| whenever the amount of Federal      | provide revised budget         |
| authorized funds is expected to     | information to the Federal     |
| exceed the needs of the recipient   | awarding agency if there are   |
| for the project period by more than | any significant changes in the |
| \$5000 or five percent of the       | size or scope of the project   |
| Federal award, whichever is         | or in the originally           |
| greater. This notification shall    | negotiated total estimated     |
| not be required if an application   | cost for the project period.   |
| for additional funding is submitted |                                |
| for a continuation award.           | > \(1\) To request approval    |
|                                     | > for budget revisions, the    |
| \(l\) When requesting approval for  | > recipient shall use the      |
| budget revisions, recipients shall  | > budget forms that were used  |
| use the budget forms that were used | > in the application unless    |
| in the application unless the       | > the Federal awarding agency  |
| Federal awarding agency indicates a | > states in its                |
| letter of request suffices.         | > Agency-Specific Requirements |
|                                     | > that a letter of request     |
| \(m\) Within 30 calendar days from  | > suffices.                    |
| the date of receipt of the request  | >                              |
| for budget revisions, Federal       | > \(2\) Within 30 calendar     |
| awarding agencies shall review the  | > days from the date of        |
| request and notify the recipient    | > receipt of the request for   |
| whether the budget revisions have   | > budget revisions, the        |
| been approved. If the revision is   | > Federal awarding agency      |
| still under consideration at the    | > shall review the request and |
| end of 30 calendar days, the        | > notify the recipient whether |
| Federal awarding agency shall       | > the budget revisions have    |
| inform the recipient in writing of  | > been approved. If the        |
| the date when the recipient may     | > revision is still under      |
| expect the decision.                | > consideration at the end of  |
|                                     | > 30 calendar days, the        |
|                                     | > Federal awarding agency      |
|                                     | > shall inform the recipient   |
|                                     | > in writing of the date when  |
|                                     | > the recipient may expect the |
|                                     | > decision.                    |
+-------------------------------------+--------------------------------+
| \_\_\_.26 Non-Federal audits.       | 26\. **Non-Federal audits**.   |
|                                     | The recipient will obtain      |
| \(a\) Recipients and subrecipients  | audits and require             |
| that are institutions of higher     | subrecipients to obtain audits |
| education or other non-profit       | in accordance with section     |
| organizations (including hospitals) | \_\_\_.26 of OMB Circular      |
| shall be subject to the audit       | A‑110.                         |
| requirements contained in the       |                                |
| Single Audit Act Amendments of 1996 |                                |
| (31 USC 7501-7507) and revised OMB  |                                |
| Circular A-133, \"Audits of States, |                                |
| Local Governments, and Non-Profit   |                                |
| Organizations.\"                    |                                |
|                                     |                                |
| \(b\) State and local governments   |                                |
| shall be subject to the audit       |                                |
| requirements contained in the       |                                |
| Single Audit Act Amendments of 1996 |                                |
| (31 USC 7501-7507) and revised OMB  |                                |
| Circular A-133, \"Audits of States, |                                |
| Local Governments, and Non-Profit   |                                |
| Organizations.\"                    |                                |
|                                     |                                |
| \(c\) For-profit hospitals not      |                                |
| covered by the audit provisions of  |                                |
| revised OMB Circular A-133 shall be |                                |
| subject to the audit requirements   |                                |
| of the Federal awarding agencies.   |                                |
|                                     |                                |
| \(d\) Commercial organizations      |                                |
| shall be subject to the audit       |                                |
| requirements of the Federal         |                                |
| awarding agency or the prime        |                                |
| recipient as incorporated into the  |                                |
| award document.                     |                                |
+-------------------------------------+--------------------------------+
| \_\_\_.27 Allowable costs. For each | 27. **Allowable costs**. This  |
| kind of recipient, there is a set   |     includes costs of the      |
| of Federal principles for           |     award and costs of         |
| determining allowable costs.        |     subrecipients under        |
| Allowability of costs shall be      |     subawards to the award.    |
| determined in accordance with the   |     Allowable costs of the     |
| cost principles applicable to the   |     recipient and              |
| entity incurring the costs. Thus,   |     subrecipients are in       |
| allowability of costs incurred by   |     accordance with the cost   |
| State, local or                     |     principles described in    |
| federally-recognized Indian tribal  |     section \_\_\_.27 of OMB   |
| governments is determined in        |     Circular A‑110, with the   |
| accordance with the provisions of   |     following clarifications:  |
| OMB Circular A-87, \"Cost           |                                |
| Principles for State, Local, and    | ```{=html}                     |
| Indian Tribal Governments.\" The    | <!-- -->                       |
| allowability of costs incurred by   | ```                            |
| non-profit organizations is         | (a) [Educational institutions  |
| determined in accordance with the   |     covered by OMB Circular    |
| provisions of OMB Circular A-122,   |     A-21]{.underline}.         |
| \"Cost Principles for Non-Profit    |                                |
| Organizations.\" The allowability   | \(1\) [Prior                   |
| of costs incurred by institutions   | approvals]{.underline}. The    |
| of higher education is determined   | Federal awarding agency hereby |
| in accordance with the provisions   | approves the inclusion of      |
| of OMB Circular A-21, \"Cost        | certain costs for which the    |
| Principles for Educational          | agency's prior approval is     |
| Institutions.\" The allowability of | required by the cost           |
| costs incurred by hospitals is      | principles for educational     |
| determined in accordance with the   | institutions, in OMB Circular  |
| provisions of Appendix E of 45 CFR  | A‑21. Agency approval is       |
| part 74, \"Principles for           | granted for the recipient to:  |
| Determining Costs Applicable to     |                                |
| Research and Development Under      | \(i\) Include charges for      |
| Grants and Contracts with           | faculty consulting on          |
| Hospitals.\" The allowability of    | sponsored agreements that      |
| costs incurred by commercial        | exceed a faculty member's base |
| organizations and those non-profit  | salary, but only in unusual    |
| organizations listed in Attachment  | cases where: (a) consultation  |
| C to Circular A-122 is determined   | is across departmental lines   |
| in accordance with the provisions   | or involves a separate or      |
| of the Federal Acquisition          | remote operation; and (b) the  |
| Regulation (FAR) at 48 CFR part 31. | consulting work is in addition |
|                                     | to the faculty member's        |
|                                     | regular departmental load      |
|                                     | \[reference paragraph          |
|                                     | J.8.d.(1) of OMB               |
|                                     | Circular A‑21\].               |
|                                     |                                |
|                                     | \(ii\) Include as direct       |
|                                     | charges capital expenditures   |
|                                     | for general purpose equipment  |
|                                     | or special purpose equipment,  |
|                                     | but only if the equipment is   |
|                                     | primarily used in the actual   |
|                                     | conduct of the research, as    |
|                                     | stated in paragraph 34.(c) of  |
|                                     | Article 34 of these General    |
|                                     | Terms and Conditions           |
|                                     | \[reference paragraphs         |
|                                     | J.16.b.(1) and (2) of OMB      |
|                                     | Circular A‑21\].               |
|                                     |                                |
|                                     | \(iii\) Include as direct      |
|                                     | charges capital expenditures   |
|                                     | for improvements to equipment  |
|                                     | that materially increases the  |
|                                     | equipment's value or useful    |
|                                     | life, but only if the          |
|                                     | equipment is primarily used in |
|                                     | the actual conduct of the      |
|                                     | research \[reference paragraph |
|                                     | J.16.b.(3) of OMB              |
|                                     | Circular A‑21\].               |
|                                     |                                |
|                                     | \(iv\) Include preagreement    |
|                                     | costs, to the extent described |
|                                     | in paragraph 25.(c)(1) of      |
|                                     | Article 25 of these General    |
|                                     | Terms and Conditions           |
|                                     | \[reference paragraph J.31. of |
|                                     | OMB Circular A‑21\].           |
|                                     |                                |
|                                     | \(v\) Include alterations and  |
|                                     | renovations under \$25,000     |
|                                     | \[reference paragraph J.35. of |
|                                     | OMB Circular A-21\], subject   |
|                                     | to the following conditions:   |
|                                     |                                |
|                                     | (A)The alteration or           |
|                                     | renovation must be essential   |
|                                     | to the project supported;      |
|                                     |                                |
|                                     | \(B\) The facility to be       |
|                                     | altered or renovated must have |
|                                     | a useful life consistent with  |
|                                     | research purposes and be       |
|                                     | architecturally and            |
|                                     | structurally suitable for      |
|                                     | conversion to the type of      |
|                                     | space required;                |
|                                     |                                |
|                                     | \(C\) The space involved must  |
|                                     | actually be occupied by the    |
|                                     | project or program;            |
|                                     |                                |
|                                     | \(D\) The space must be        |
|                                     | suitable for human occupancy   |
|                                     | before alteration or           |
|                                     | renovation work is started,    |
|                                     | except where the purpose of    |
|                                     | the alteration or renovation   |
|                                     | is to make the space suitable  |
|                                     | for some purpose other than    |
|                                     | human occupancy (e.g.,         |
|                                     | storage);                      |
|                                     |                                |
|                                     | \(E\) If the space is rented,  |
|                                     | evidence must be provided that |
|                                     | the terms of the lease are     |
|                                     | compatible with the alteration |
|                                     | and renovation proposed.       |
|                                     |                                |
|                                     | \(2\) The following            |
|                                     | clarification applies to the   |
|                                     | standard in paragraph c.4.d.   |
|                                     | of OMB Circular A-21, which    |
|                                     | relates to allocation of costs |
|                                     | for interrelated projects      |
|                                     | supported by multiple Federal  |
|                                     | awards: The interrelationship  |
|                                     | between or among projects does |
|                                     | not have to be formally        |
|                                     | stipulated, but must be        |
|                                     | demonstrable on the basis of   |
|                                     | the following criteria.        |
|                                     | Either: (a) the theoretical    |
|                                     | approaches are interrelated;   |
|                                     | (b) studies of the same        |
|                                     | phenomena are conducted by the |
|                                     | same or different techniques;  |
|                                     | or (c) studies of different    |
|                                     | phenomena are conducted by the |
|                                     | same technique.                |
|                                     |                                |
|                                     | \(b\) [Nonprofit organizations |
|                                     | covered by OMB Circular        |
|                                     | A‑122]{.underline}. The        |
|                                     | Federal awarding agency hereby |
|                                     | approves the inclusion of      |
|                                     | certain costs for which the    |
|                                     | agency's prior approval is     |
|                                     | required by the cost           |
|                                     | principles for nonprofit       |
|                                     | organizations, in OMB Circular |
|                                     | A‑122. Agency approval is      |
|                                     | granted for the recipient to:  |
|                                     |                                |
|                                     | \(1\) Include as direct        |
|                                     | charges capital expenditures   |
|                                     | for general purpose equipment  |
|                                     | or special purpose equipment,  |
|                                     | but only if the equipment is   |
|                                     | primarily used in the actual   |
|                                     | conduct of the research, as    |
|                                     | stated in paragraph 34.(c) of  |
|                                     | Article 34 of these R&R        |
|                                     | General Terms and Conditions   |
|                                     | \[reference paragraphs         |
|                                     | 15.b.(1) and (2) of Attachment |
|                                     | B to OMB Circular A‑122\].     |
|                                     |                                |
|                                     | \(2\) Include as direct        |
|                                     | charges capital expenditures   |
|                                     | for improvements to equipment  |
|                                     | that materially increases the  |
|                                     | equipment's value or useful    |
|                                     | life, but only if the          |
|                                     | equipment is primarily used in |
|                                     | the actual conduct of the      |
|                                     | research \[reference paragraph |
|                                     | 15.d. of Attachment B to OMB   |
|                                     | Circular A‑122\].              |
|                                     |                                |
|                                     | \(3\) Include participant      |
|                                     | support costs such as          |
|                                     | stipends, subsistence          |
|                                     | allowances, travel allowances, |
|                                     | and registration fees paid to  |
|                                     | or on behalf of participants   |
|                                     | or trainees (but not           |
|                                     | employees) in connection with  |
|                                     | meetings, conferences,         |
|                                     | symposia, or training projects |
|                                     | \[reference paragraph 34 of    |
|                                     | Attachment B to OMB Circular   |
|                                     | A-122.\]                       |
|                                     |                                |
|                                     | \(4\) Include pre-award costs  |
|                                     | incurred up to 90 days prior   |
|                                     | to the effective date of the   |
|                                     | award, as provided in Article  |
|                                     | 25.(c)(1) of these general     |
|                                     | terms and conditions           |
|                                     | \[reference paragraph 38 of    |
|                                     | Attachment B to OMB Circular   |
|                                     | A‑122.\]                       |
|                                     |                                |
|                                     | \(5\) Include costs of         |
|                                     | alterations and renovations    |
|                                     | under \$25,000 \[reference     |
|                                     | paragraph 42. of Attachment B  |
|                                     | to OMB Circular A‑122\],       |
|                                     | subject to the following       |
|                                     | conditions:                    |
|                                     |                                |
|                                     | (i)The alteration or           |
|                                     | renovation must be essential   |
|                                     | to the project supported;      |
|                                     |                                |
|                                     | \(ii\) The facility to be      |
|                                     | altered or renovated must have |
|                                     | a useful life consistent with  |
|                                     | research purposes and be       |
|                                     | architecturally and            |
|                                     | structurally suitable for      |
|                                     | conversion to the type of      |
|                                     | space required;                |
|                                     |                                |
|                                     | \(iii\) The space involved     |
|                                     | must actually be occupied by   |
|                                     | the project or program;        |
|                                     |                                |
|                                     | \(iv\) The space must be       |
|                                     | suitable for human occupancy   |
|                                     | before alteration or           |
|                                     | renovation work is started,    |
|                                     | except where the purpose of    |
|                                     | the alteration or renovation   |
|                                     | is to make the space suitable  |
|                                     | for some purpose other than    |
|                                     | human occupancy (e.g.,         |
|                                     | storage);                      |
|                                     |                                |
|                                     | \(v\) If the space is rented,  |
|                                     | evidence must be provided that |
|                                     | the terms of the lease are     |
|                                     | compatible with the alteration |
|                                     | and renovation proposed.       |
|                                     |                                |
|                                     | \(6\) Include costs for        |
|                                     | foreign travel outside of      |
|                                     | Canada and the United States   |
|                                     | and its territories and        |
|                                     | possessions \[reference        |
|                                     | paragraph 55.e. of Attachment  |
|                                     | B to OMB Circular A‑122.\]     |
|                                     |                                |
|                                     | \(c\) [Hospitals covered by 45 |
|                                     | CFR 74, Appendix               |
|                                     | E.]{.underline} The Federal    |
|                                     | awarding agencies hereby       |
|                                     | approve the inclusion of       |
|                                     | certain costs for which the    |
|                                     | agency's prior approval is     |
|                                     | required by the cost           |
|                                     | principles for hospitals, in   |
|                                     | 45 CFR 74, Appendix E. Agency  |
|                                     | approval is granted for the    |
|                                     | recipient to:                  |
|                                     |                                |
|                                     | \(1\) Include as direct        |
|                                     | charges capital expenditures   |
|                                     | for general purpose equipment  |
|                                     | or special purpose equipment,  |
|                                     | but only if the equipment is   |
|                                     | primarily used in the actual   |
|                                     | conduct of the research as     |
|                                     | stated in paragraph 34.,(c)of  |
|                                     | Article 34 of these R&R        |
|                                     | General Terms and Conditions   |
|                                     | (reference paragraphs IX.B.4 & |
|                                     | 12 of 45 CFR 74, Appendix E).  |
|                                     |                                |
|                                     | \(2\) Include charges for      |
|                                     | non-hospital professional      |
|                                     | activities that exceed a staff |
|                                     | member's base salary, but only |
|                                     | in unusual cases where (a) the |
|                                     | non-hospital professional      |
|                                     | activities are across          |
|                                     | departmental lines or involve  |
|                                     | a separate or remote           |
|                                     | operation; and (b) the         |
|                                     | non-hospital professional work |
|                                     | is in addition to the staff    |
|                                     | members regular departmental   |
|                                     | load (reference paragraph      |
|                                     | IX.B.7.f. of 45 CFR 74,        |
|                                     | Appendix E).                   |
|                                     |                                |
|                                     | > \(3\) Include preagreement   |
|                                     | > costs to the extent          |
|                                     | > described in paragraph       |
|                                     | > 25.3.1 of Article of these   |
|                                     | > General Terms and Conditions |
|                                     | > (reference paragraph IX.B.27 |
|                                     | > of 45 CFR 74, Appendix E).   |
|                                     |                                |
|                                     | \(4\) Rearrangement,           |
|                                     | alteration and reconversion    |
|                                     | costs under \$25,000           |
|                                     | (reference paragraphs IX.B.32  |
|                                     | & 33 of 45 CFR 74, Appendix E) |
|                                     | subject to the following       |
|                                     | conditions:                    |
|                                     |                                |
|                                     | (i)The rearrangement or        |
|                                     | alteration must be essential   |
|                                     | to the project supported;      |
|                                     |                                |
|                                     | (ii)The facility to be altered |
|                                     | or rearranged must have a      |
|                                     | useful life consistent with    |
|                                     | research purposes and be       |
|                                     | architecturally and            |
|                                     | structurally suitable for      |
|                                     | conversion to the type of      |
|                                     | space required;                |
|                                     |                                |
|                                     | (iii)The space involved must   |
|                                     | actually be occupied by the    |
|                                     | project or program;            |
|                                     |                                |
|                                     | \(iv\) The space must be       |
|                                     | suitable for human occupancy   |
|                                     | before alteration or           |
|                                     | rearrangement work is started, |
|                                     | except where the purpose of    |
|                                     | the alteration or              |
|                                     | rearrangement is to make the   |
|                                     | space suitable for some        |
|                                     | purpose other than human       |
|                                     | occupancy (e.g., storage);     |
|                                     |                                |
|                                     | \(v\) If the space is rented,  |
|                                     | evidence must be provided that |
|                                     | the terms of the lease are     |
|                                     | compatible with the alteration |
|                                     | and rearrangement proposed.    |
+-------------------------------------+--------------------------------+
| \_\_\_.28 Period of availability of | 28\. **Period of availability  |
| funds. Where a funding period is    | of funds**. The recipient may  |
| specified, a recipient may charge   | charge to the award only       |
| to the grant only allowable costs   | allowable costs resulting from |
| resulting from obligations incurred | obligations incurred during    |
| during the funding period and any   | the funding period specified,  |
| pre-award costs authorized by the   | any pre-award costs authorized |
| Federal awarding agency.            | in accordance with paragraph   |
|                                     | (c) of Article 25 of these R&R |
|                                     | General Terms and Conditions,  |
|                                     | and costs incidental to the    |
|                                     | production of the final        |
|                                     | report.                        |
+-------------------------------------+--------------------------------+
| \_\_\_.29 Conditional exemptions.   | # 29. [Reserved]{.underline}   |
|                                     |                                |
| \(a\) OMB authorizes conditional    |                                |
| exemption from OMB administrative   |                                |
| requirements and cost principles    |                                |
| circulars for certain Federal       |                                |
| programs with                       |                                |
| statutorily-authorized consolidated |                                |
| planning and consolidated           |                                |
| administrative funding, that are    |                                |
| identified by a Federal agency and  |                                |
| approved by the head of the         |                                |
| Executive department or             |                                |
| establishment. A Federal agency     |                                |
| shall consult with OMB during its   |                                |
| consideration of whether to grant   |                                |
| such an exemption.                  |                                |
|                                     |                                |
| \(b\) To promote efficiency in      |                                |
| State and local program             |                                |
| administration, when Federal        |                                |
| non-entitlement programs with       |                                |
| common purposes have specific       |                                |
| statutorily-authorized consolidated |                                |
| planning and consolidated           |                                |
| administrative funding and where    |                                |
| most of the State agency\'s         |                                |
| resources come from non-Federal     |                                |
| sources, Federal agencies may       |                                |
| exempt these covered                |                                |
| State-administered, non-entitlement |                                |
| grant programs from certain OMB     |                                |
| grants management requirements. The |                                |
| exemptions would be from all but    |                                |
| the allocability of costs           |                                |
| provisions of OMB Circulars A-87    |                                |
| (Attachment A, subsection C.3),     |                                |
| \"Cost Principles for State, Local, |                                |
| and Indian Tribal Governments,\"    |                                |
| A-21 (Section C, subpart 4), \"Cost |                                |
| Principles for Educational          |                                |
| Institutions,\" and A-122           |                                |
| (Attachment A, subsection A.4),     |                                |
| \"Cost Principles for Non-Profit    |                                |
| Organizations,\" and from all of    |                                |
| the administrative requirements     |                                |
| provisions of OMB Circular A-110,   |                                |
| \"Uniform Administrative            |                                |
| Requirements for Grants and         |                                |
| Agreements with Institutions of     |                                |
| Higher Education, Hospitals, and    |                                |
| Other Non-Profit Organizations,\"   |                                |
| and the agencies\' grants           |                                |
| management common rule.             |                                |
|                                     |                                |
| (a) When a Federal agency provides  |                                |
|     this flexibility, as a          |                                |
|     prerequisite to a State\'s      |                                |
|     exercising this option, a State |                                |
|     must adopt its own written      |                                |
|     fiscal and administrative       |                                |
|     requirements for expending and  |                                |
|     accounting for all funds, which |                                |
|     are consistent with the         |                                |
|     provisions of OMB Circular      |                                |
|     A-87, and extend such policies  |                                |
|     to all subrecipients. These     |                                |
|     fiscal and administrative       |                                |
|     requirements must be            |                                |
|     sufficiently specific to ensure |                                |
|     that: funds are used in         |                                |
|     compliance with all applicable  |                                |
|     Federal statutory and           |                                |
|     regulatory provisions, costs    |                                |
|     are reasonable and necessary    |                                |
|     for operating these programs,   |                                |
|     and funds are not be used for   |                                |
|     general expenses required to    |                                |
|     carry out other                 |                                |
|     responsibilities of a State or  |                                |
|     its subrecipients.              |                                |
+-------------------------------------+--------------------------------+
| Property Standards                  | # III.B. PROPERTY STANDARDS    |
|                                     |                                |
| \_\_\_.30 Purpose of property       | #                              |
| standards. Sections \_\_\_.31       |                                |
| through \_\_\_.37 set forth uniform | 30\. Purpose of property       |
| standards governing management and  | standards. Sections \_\_\_.31  |
| disposition of property furnished   | through \_\_\_.37 of OMB       |
| by the Federal Government whose     | Circular A-110 set forth       |
| cost was charged to a project       | uniform standards governing    |
| supported by a Federal award.       | management and disposition of  |
| Federal awarding agencies shall     | property furnished by the      |
| require recipients to observe these | Federal Government whose cost  |
| standards under awards and shall    | was charged to a project       |
| not impose additional requirements, | supported by a Federal award.  |
| unless specifically required by     |                                |
| Federal statute. The recipient may  |                                |
| use its own property management     |                                |
| standards and procedures provided   |                                |
| it observes the provisions of       |                                |
| Sections \_\_\_.31 through          |                                |
| \_\_\_.37.                          |                                |
+-------------------------------------+--------------------------------+
| \_\_\_.31 Insurance coverage.       | 31\. **Insurance coverage**.   |
| Recipients shall, at a minimum,     | Requirements for insuring real |
| provide the equivalent insurance    | property or equipment under    |
| coverage for real property and      | the award are as stated in     |
| equipment acquired with Federal     | section \_\_\_.31 of OMB       |
| funds as provided to property owned | Circular A‑110.                |
| by the recipient. Federally-owned   |                                |
| property need not be insured unless |                                |
| required by the terms and           |                                |
| conditions of the award.            |                                |
+-------------------------------------+--------------------------------+
| \_\_\_.32 Real property. Each       | 32\. **Real property**. The    |
| Federal awarding agency shall       | recipient may not acquire real |
| prescribe requirements for          | property under the award       |
| recipients concerning the use and   | without the prior approval of  |
| disposition of real property        | the Federal awarding agency,   |
| acquired in whole or in part under  | in accordance with paragraph   |
| awards. Unless otherwise provided   | J.16.b.(1) of OMB Circular     |
| by statute, such requirements, at a | A-21. Should approval be       |
| minimum, shall contain the          | granted to do so, the Federal  |
| following.                          | awarding agency will prescribe |
|                                     | requirements for use and       |
| \(a\) Title to real property shall  | disposition of the property,   |
| vest in the recipient subject to    | in accordance with section     |
| the condition that the recipient    | \_\_\_.32 of OMB Circular      |
| shall use the real property for the | A‑110.                         |
| authorized purpose of the project   |                                |
| as long as it is needed and shall   |                                |
| not encumber the property without   |                                |
| approval of the Federal awarding    |                                |
| agency.                             |                                |
|                                     |                                |
| \(b\) The recipient shall obtain    |                                |
| written approval by the Federal     |                                |
| awarding agency for the use of real |                                |
| property in other                   |                                |
| federally-sponsored projects when   |                                |
| the recipient determines that the   |                                |
| property is no longer needed for    |                                |
| the purpose of the original         |                                |
| project. Use in other projects      |                                |
| shall be limited to those under     |                                |
| federally-sponsored projects (i.e., |                                |
| awards) or programs that have       |                                |
| purposes consistent with those      |                                |
| authorized for support by the       |                                |
| Federal awarding agency.            |                                |
|                                     |                                |
| \(c\) When the real property is no  |                                |
| longer needed as provided in        |                                |
| paragraphs (a) and (b), the         |                                |
| recipient shall request disposition |                                |
| instructions from the Federal       |                                |
| awarding agency or its successor    |                                |
| Federal awarding agency. The        |                                |
| Federal awarding agency shall       |                                |
| observe one or more of the          |                                |
| following disposition instructions. |                                |
|                                     |                                |
| \(1\) The recipient may be          |                                |
| permitted to retain title without   |                                |
| further obligation to the Federal   |                                |
| Government after it compensates the |                                |
| Federal Government for that         |                                |
| percentage of the current fair      |                                |
| market value of the property        |                                |
| attributable to the Federal         |                                |
| participation in the project.       |                                |
|                                     |                                |
| \(2\) The recipient may be directed |                                |
| to sell the property under          |                                |
| guidelines provided by the Federal  |                                |
| awarding agency and pay the Federal |                                |
| Government for that percentage of   |                                |
| the current fair market value of    |                                |
| the property attributable to the    |                                |
| Federal participation in the        |                                |
| project (after deducting actual and |                                |
| reasonable selling and fix-up       |                                |
| expenses, if any, from the sales    |                                |
| proceeds). When the recipient is    |                                |
| authorized or required to sell the  |                                |
| property, proper sales procedures   |                                |
| shall be established that provide   |                                |
| for competition to the extent       |                                |
| practicable and result in the       |                                |
| highest possible return.            |                                |
|                                     |                                |
| \(3\) The recipient may be directed |                                |
| to transfer title to the property   |                                |
| to the Federal Government or to an  |                                |
| eligible third party provided that, |                                |
| in such cases, the recipient shall  |                                |
| be entitled to compensation for its |                                |
| attributable percentage of the      |                                |
| current fair market value of the    |                                |
| property.                           |                                |
+-------------------------------------+--------------------------------+
| \_\_\_.33 Federally-owned and       | 33\. **Federally-owned and     |
| exempt property.                    | exempt property**.             |
|                                     |                                |
| \(a\) Federally-owned property.     | \(a\) [Federally‑owned         |
|                                     | property]{.underline}          |
| \(1\) Title to federally-owned      | includes: equipment or         |
| property remains vested in the      | supplies that are furnished by |
| Federal Government. Recipients      | the Federal Government; or     |
| shall submit annually an inventory  | equipment acquired by the      |
| listing of federally-owned property | recipient under a Federal      |
| in their custody to the Federal     | award that specifies that      |
| awarding agency. Upon completion of | title to the property vests    |
| the award or when the property is   | upon acquisition in the        |
| no longer needed, the recipient     | Federal Government. The        |
| shall report the property to the    | recipient:                     |
| Federal awarding agency for further |                                |
| Federal agency utilization.         | > \(1\) Must submit annual and |
|                                     | > final reports for any        |
| \(2\) If the Federal awarding       | > Federally‑owned property     |
| agency has no further need for the  | > under the award, in          |
| property, it shall be declared      | > accordance with paragraph    |
| excess and reported to the General  | > (a)(1) of section \_\_\_.33  |
| Services Administration, unless the | > of OMB Circular A‑110.       |
| Federal awarding agency has         | >                              |
| statutory authority to dispose of   | > \(2\) May use                |
| the property by alternative methods | > Federally‑owned equipment on |
| (e.g., the authority provided by    | > other activities not         |
| the Federal Technology Transfer Act | > sponsored by the Federal     |
| (15 U.S.C. 3710 (I)) to donate      | > Government only if           |
| research equipment to educational   | > authorized by the Federal    |
| and non-profit organizations in     | > awarding agency. User        |
| accordance with E.O. 12821,         | > charges must be treated as   |
| \"Improving Mathematics and Science | > program income, in           |
| Education in Support of the         | > accordance with paragraph    |
| National Education Goals.\")        | > (d) of section \_\_\_.34 of  |
| Appropriate instructions shall be   | > OMB Circular A-110.          |
| issued to the recipient by the      | >                              |
| Federal awarding agency.            | > \(3\) Must administer        |
|                                     | > Federally‑owned equipment in |
| \(b\) Exempt property. When         | > accordance with paragraph    |
| statutory authority exists, the     | > (f) of section \_\_\_.34 OMB |
| Federal awarding agency has the     | > Circular A-110.              |
| option to vest title to property    |                                |
| acquired with Federal funds in the  | \(b\) [Exempt                  |
| recipient without further           | property]{.underline}. All     |
| obligation to the Federal           | equipment and supplies         |
| Government and under conditions the | acquired by the recipient      |
| Federal awarding agency considers   | under the award are "exempt    |
| appropriate. Such property is       | property," as that term is     |
| \"exempt property.\" Should a       | defined in OMB Circular A‑110. |
| Federal awarding agency not         | Articles 34 and 35 of these    |
| establish conditions, title to      | General Terms and Conditions   |
| exempt property upon acquisition    | address the requirements for   |
| shall vest in the recipient without | equipment and supplies,        |
| further obligation to the Federal   | respectively.                  |
| Government.                         |                                |
+-------------------------------------+--------------------------------+
| \_\_\_.34 Equipment.                | 34\. **Equipment**.            |
|                                     |                                |
| \(a\) Title to equipment acquired   | \(a\) Unless the               |
| by a recipient with Federal funds   | agency-specific requirements   |
| shall vest in the recipient,        | provide otherwise, title to    |
| subject to conditions of this       | all equipment purchased or     |
| section.                            | fabricated with Federal        |
|                                     | awarding agency or recipient   |
| \(b\) The recipient shall not use   | cost sharing funds, as direct  |
| equipment acquired with Federal     | costs of the project or        |
| funds to provide services to        | program, shall vest in the     |
| non-Federal outside organizations   | recipient upon acquisition     |
| for a fee that is less than private | without further obligation to  |
| companies charge for equivalent     | the Federal Government,        |
| services, unless specifically       | subject to the following       |
| authorized by Federal statute, for  | conditions:                    |
| as long as the Federal Government   |                                |
| retains an interest in the          | > \(1\) The Federal awarding   |
| equipment.                          | > agency may require that      |
|                                     | > title be transferred to the  |
| \(c\) The recipient shall use the   | > Federal Government or a      |
| equipment in the project or program | > third party if the project   |
| for which it was acquired as long   | > or program for which the     |
| as needed, whether or not the       | > equipment was purchased is   |
| project or program continues to be  | > transferred to another       |
| supported by Federal funds and      | > recipient. In any such case, |
| shall not encumber the property     | > the Federal awarding agency  |
| without approval of the Federal     | > will notify the recipient of |
| awarding agency. When no longer     | > the intent to transfer title |
| needed for the original project or  | > within 120 days following    |
| program, the recipient shall use    | > the expiration or            |
| the equipment in connection with    | > termination of the project   |
| its other federally-sponsored       | > and paragraph (g)(2) of      |
| activities, in the following order  | > section \_\_\_.34 of OMB     |
| of priority: (i) Activities         | > Circular A‑110 then applies. |
| sponsored by the Federal awarding   | >                              |
| agency which funded the original    | > \(2\) As long as the Federal |
| project, then (ii) activities       | > Government continues to      |
| sponsored by other Federal awarding | > support the project or       |
| agencies.                           | > program for which the        |
|                                     | > equipment was purchased, the |
| \(d\) During the time that          | > recipient:                   |
| equipment is used on the project or |                                |
| program for which it was acquired,  | \(i\) Must use the equipment   |
| the recipient shall make it         | in that project or program,    |
| available for use on other projects | unless it no longer is needed  |
| or programs if such other use will  | for that project or program.   |
| not interfere with the work on the  | The recipient may not encumber |
| project or program for which the    | the equipment without the      |
| equipment was originally acquired.  | approval of the Federal        |
| First preference for such other use | awarding agency.               |
| shall be given to other projects or |                                |
| programs sponsored by the Federal   | \(ii\) Must use the equipment  |
| awarding agency that financed the   | in accordance with paragraphs  |
| equipment; second preference shall  | (b) and (d) of section         |
| be given to projects or programs    | \_\_\_.34 of OMB Circular      |
| sponsored by other Federal awarding | A‑110. In accordance with      |
| agencies. If the equipment is owned | paragraph (b), the recipient   |
| by the Federal Government, use on   | shall not use equipment        |
| other activities not sponsored by   | acquired with Federal funds to |
| the Federal Government shall be     | provide services to            |
| permissible if authorized by the    | non-Federal outside            |
| Federal awarding agency. User       | organizations for a fee that   |
| charges shall be treated as program | is less than private companies |
| income.                             | charge for equivalent          |
|                                     | services, unless specifically  |
| \(e\) When acquiring replacement    | authorized by Federal statute. |
| equipment, the recipient may use    |                                |
| the equipment to be replaced as     | \(iii\) May, when acquiring    |
| trade-in or sell the equipment and  | replacement equipment, use the |
| use the proceeds to offset the      | equipment that is being        |
| costs of the replacement equipment  | replaced as trade‑in or sell   |
| subject to the approval of the      | the equipment and use the      |
| Federal awarding agency.            | proceeds to offset the costs   |
|                                     | of the replacement equipment,  |
| \(f\) The recipient\'s property     | as authorized by paragraph (e) |
| management standards for equipment  | of section \_\_\_.34 of OMB    |
| acquired with Federal funds and     | Circular A‑110.                |
| federally-owned equipment shall     |                                |
| include all of the following.       | > \(3\) The recipient must     |
|                                     | > account for the equipment in |
| \(1\) Equipment records shall be    | > accordance with paragraph    |
| maintained accurately and shall     | > (f) of section \_\_\_.34 of  |
| include the following information.  | > OMB Circular A-110. The      |
|                                     | > recipient must continue to   |
| \(i\) A description of the          | > account for the equipment    |
| equipment.                          | > after the cessation of       |
|                                     | > Federal support for the      |
| \(ii\) Manufacturer\'s serial       | > project or program for which |
| number, model number, Federal stock | > the equipment was purchased, |
| number, national stock number, or   | > in a manner that ensures     |
| other identification number.        | > that: (a) equipment          |
|                                     | > purchased under the award is |
| \(iii\) Source of the equipment,    | > not later included as a      |
| including the award number.         | > contribution toward cost     |
|                                     | > sharing under another        |
| \(iv\) Whether title vests in the   | > Federal award; and           |
| recipient or the Federal            | > (b) depreciation or use      |
| Government.                         | > charges for the equipment    |
|                                     | > are not later included in    |
| \(v\) Acquisition date (or date     | > any proposal for Facilities  |
| received, if the equipment was      | > and Administration costs.    |
| furnished by the Federal            |                                |
| Government) and cost.               | \(b\) The recipient shall      |
|                                     | specify in any cost‑type       |
| \(vi\) Information from which one   | subaward whether title to      |
| can calculate the percentage of     | equipment purchased or         |
| Federal participation in the cost   | fabricated under the subaward  |
| of the equipment (not applicable to | vests in the recipient or      |
| equipment furnished by the Federal  | subrecipient. If title vests   |
| Government).                        | in the subrecipient, it must   |
|                                     | be subject to the conditions   |
| \(vii\) Location and condition of   | specified in paragraph 34 (a)  |
| the equipment and the date the      | of this article (modified      |
| information was reported.           | appropriately if the           |
|                                     | subrecipient is not an         |
| \(viii\) Unit acquisition cost.     | institution of higher          |
|                                     | education or nonprofit         |
| \(ix\) Ultimate disposition data,   | organization and its property  |
| including date of disposal and      | management standards are       |
| sales price or the method used to   | specified in a document other  |
| determine current fair market value | than OMB Circular A‑110). The  |
| where a recipient compensates the   | recipient shall also require   |
| Federal awarding agency for its     | each subrecipient to specify,  |
| share.                              | in any lower‑tier, cost‑type   |
|                                     | subaward that the subrecipient |
| \(2\) Equipment owned by the        | awards, whether title to       |
| Federal Government shall be         | equipment purchased or         |
| identified to indicate Federal      | fabricated under that          |
| ownership.                          | lower‑tier subaward vests in   |
|                                     | the subrecipient making the    |
| \(3\) A physical inventory of       | subaward or in the lower‑tier  |
| equipment shall be taken and the    | subrecipient.                  |
| results reconciled with the         |                                |
| equipment records at least once     | \(c\) Expenditures for         |
| every two years. Any differences    | acquisition or improvement of  |
| between quantities determined by    | general purpose and special    |
| the physical inspection and those   | purpose equipment, as defined  |
| shown in the accounting records     | in paragraphs J.16.a.(3) and   |
| shall be investigated to determine  | (4) of OMB Circular A‑21, are  |
| the causes of the difference. The   | allowable as direct costs of   |
| recipient shall, in connection with | the project in accordance with |
| the inventory, verify the           | Article 27, Section            |
| existence, current utilization, and | (a)(1)(iii) of these R&R       |
| continued need for the equipment.   | General Terms and Conditions.  |
|                                     |                                |
| \(4\) A control system shall be in  |                                |
| effect to insure adequate           |                                |
| safeguards to prevent loss, damage, |                                |
| or theft of the equipment. Any      |                                |
| loss, damage, or theft of equipment |                                |
| shall be investigated and fully     |                                |
| documented; if the equipment was    |                                |
| owned by the Federal Government,    |                                |
| the recipient shall promptly notify |                                |
| the Federal awarding agency.        |                                |
|                                     |                                |
| \(5\) Adequate maintenance          |                                |
| procedures shall be implemented to  |                                |
| keep the equipment in good          |                                |
| condition.                          |                                |
|                                     |                                |
| \(6\) Where the recipient is        |                                |
| authorized or required to sell the  |                                |
| equipment, proper sales procedures  |                                |
| shall be established which provide  |                                |
| for competition to the extent       |                                |
| practicable and result in the       |                                |
| highest possible return.            |                                |
|                                     |                                |
| \(g\) When the recipient no longer  |                                |
| needs the equipment, the equipment  |                                |
| may be used for other activities in |                                |
| accordance with the following       |                                |
| standards. For equipment with a     |                                |
| current per unit fair market value  |                                |
| of \$5000 or more, the recipient    |                                |
| may retain the equipment for other  |                                |
| uses provided that compensation is  |                                |
| made to the original Federal        |                                |
| awarding agency or its successor.   |                                |
| The amount of compensation shall be |                                |
| computed by applying the percentage |                                |
| of Federal participation in the     |                                |
| cost of the original project or     |                                |
| program to the current fair market  |                                |
| value of the equipment. If the      |                                |
| recipient has no need for the       |                                |
| equipment, the recipient shall      |                                |
| request disposition instructions    |                                |
| from the Federal awarding agency.   |                                |
| The Federal awarding agency shall   |                                |
| determine whether the equipment can |                                |
| be used to meet the agency\'s       |                                |
| requirements. If no requirement     |                                |
| exists within that agency, the      |                                |
| availability of the equipment shall |                                |
| be reported to the General Services |                                |
| Administration by the Federal       |                                |
| awarding agency to determine        |                                |
| whether a requirement for the       |                                |
| equipment exists in other Federal   |                                |
| agencies. The Federal awarding      |                                |
| agency shall issue instructions to  |                                |
| the recipient no later than 120     |                                |
| calendar days after the             |                                |
| recipient\'s request and the        |                                |
| following procedures shall govern.  |                                |
|                                     |                                |
| \(1\) If so instructed or if        |                                |
| disposition instructions are not    |                                |
| issued within 120 calendar days     |                                |
| after the recipient\'s request, the |                                |
| recipient shall sell the equipment  |                                |
| and reimburse the Federal awarding  |                                |
| agency an amount computed by        |                                |
| applying to the sales proceeds the  |                                |
| percentage of Federal participation |                                |
| in the cost of the original project |                                |
| or program. However, the recipient  |                                |
| shall be permitted to deduct and    |                                |
| retain from the Federal share \$500 |                                |
| or ten percent of the proceeds,     |                                |
| whichever is less, for the          |                                |
| recipient\'s selling and handling   |                                |
| expenses.                           |                                |
|                                     |                                |
| \(2\) If the recipient is           |                                |
| instructed to ship the equipment    |                                |
| elsewhere, the recipient shall be   |                                |
| reimbursed by the Federal           |                                |
| Government by an amount which is    |                                |
| computed by applying the percentage |                                |
| of the recipient\'s participation   |                                |
| in the cost of the original project |                                |
| or program to the current fair      |                                |
| market value of the equipment, plus |                                |
| any reasonable shipping or interim  |                                |
| storage costs incurred.             |                                |
|                                     |                                |
| \(3\) If the recipient is           |                                |
| instructed to otherwise dispose of  |                                |
| the equipment, the recipient shall  |                                |
| be reimbursed by the Federal        |                                |
| awarding agency for such costs      |                                |
| incurred in its disposition.        |                                |
|                                     |                                |
| \(4\) The Federal awarding agency   |                                |
| may reserve the right to transfer   |                                |
| the title to the Federal Government |                                |
| or to a third party named by the    |                                |
| Federal Government when such third  |                                |
| party is otherwise eligible under   |                                |
| existing statutes. Such transfer    |                                |
| shall be subject to the following   |                                |
| standards.                          |                                |
|                                     |                                |
| \(i\) The equipment shall be        |                                |
| appropriately identified in the     |                                |
| award or otherwise made known to    |                                |
| the recipient in writing.           |                                |
|                                     |                                |
| \(ii\) The Federal awarding agency  |                                |
| shall issue disposition             |                                |
| instructions within 120 calendar    |                                |
| days after receipt of a final       |                                |
| inventory. The final inventory      |                                |
| shall list all equipment acquired   |                                |
| with grant funds and                |                                |
| federally-owned equipment. If the   |                                |
| Federal awarding agency fails to    |                                |
| issue disposition instructions      |                                |
| within the 120 calendar day period, |                                |
| the recipient shall apply the       |                                |
| standards of this section, as       |                                |
| appropriate.                        |                                |
|                                     |                                |
| \(iii\) When the Federal awarding   |                                |
| agency exercises its right to take  |                                |
| title, the equipment shall be       |                                |
| subject to the provisions for       |                                |
| federally-owned equipment.          |                                |
+-------------------------------------+--------------------------------+
| \_\_\_.35 Supplies and other        | 35\. **Supplies**. Section     |
| expendable property.                | \_\_\_.35 of OMB Circular      |
|                                     | A‑110 governs the vesting of   |
| \(a\) Title to supplies and other   | title and requirements for use |
| expendable property shall vest in   | and disposition of supplies,   |
| the recipient upon acquisition. If  | with the following             |
| there is a residual inventory of    | clarification:                 |
| unused supplies exceeding \$5000 in |                                |
| total aggregate value upon          | \(a\) Unless the               |
| termination or completion of the    | agency-specific requirements   |
| project or program and the supplies | provide otherwise, title to    |
| are not needed for any other        | supplies shall vest in the     |
| federally-sponsored project or      | recipient upon acquisition     |
| program, the recipient shall retain | unconditionally, without       |
| the supplies for use on non-Federal | further obligation to the      |
| sponsored activities or sell them,  | Federal Government.            |
| but shall, in either case,          |                                |
| compensate the Federal Government   |                                |
| for its share. The amount of        |                                |
| compensation shall be computed in   |                                |
| the same manner as for equipment.   |                                |
|                                     |                                |
| \(b\) The recipient shall not use   |                                |
| supplies acquired with Federal      |                                |
| funds to provide services to        |                                |
| non-Federal outside organizations   |                                |
| for a fee that is less than private |                                |
| companies charge for equivalent     |                                |
| services, unless specifically       |                                |
| authorized by Federal statute as    |                                |
| long as the Federal Government      |                                |
| retains an interest in the          |                                |
| supplies.                           |                                |
+-------------------------------------+--------------------------------+
| \_\_\_.36 Intangible property.      | 36\. **Intangible property**.  |
|                                     | Section \_\_\_.36 of OMB       |
| \(a\) The recipient may copyright   | Circular A‑110 specifies the   |
| any work that is subject to         | Government's and recipient's   |
| copyright and was developed, or for | rights and responsibilities    |
| which ownership was purchased,      | concerning copyrights, patents |
| under an award. The Federal         | and inventions, and data that  |
| awarding agency(ies) reserve a      | are generated or acquired      |
| royalty-free, nonexclusive and      | under the award, with the      |
| irrevocable right to reproduce,     | following clarifications:      |
| publish, or otherwise use the work  |                                |
| for Federal purposes, and to        | \(a\) The Federal awarding     |
| authorize others to do so.          | agency does not waive the      |
|                                     | Federal Government's rights    |
| \(b\) Recipients are subject to     | concerning data first produced |
| applicable regulations governing    | under the award, as described  |
| patents and inventions, including   | in paragraph \_\_\_.36(c)(1)   |
| government-wide regulations issued  | and (2) of OMB Circular A-110. |
| by the Department of Commerce at 37 |                                |
| CFR part 401, \"Rights to           | \(b\) The award shall be       |
| Inventions Made by Nonprofit        | subject to the Patents Rights  |
| Organizations and Small Business    | (Small Business Firms and      |
| Firms Under Government Grants,      | Nonprofit Organizations)       |
| Contracts and Cooperative           | clause at 37 CFR 401.14 and    |
| Agreements.\"                       | the following:                 |
|                                     |                                |
| \(c\) Unless waived by the Federal  | \(1\) In each instance where   |
| awarding agency, the Federal        | the term "contract" or         |
| Government has the right to (1) and | "contractor" is used in the    |
| (2).                                | clause, those terms shall be   |
|                                     | read as "award" and            |
| \(1\) Obtain, reproduce, publish or | "recipient," respectively.     |
| otherwise use the data first        |                                |
| produced under an award.            | \(2\) In each instance where   |
|                                     | the term "Federal Agency,"     |
| \(2\) Authorize others to receive,  | "agency," or "funding Federal  |
| reproduce, publish, or otherwise    | agency" is used in the clause, |
| use such data for Federal purposes. | the term shall be read to mean |
|                                     | the awarding agency for the    |
| (d)(1) In addition, in response to  | award.                         |
| a Freedom of Information Act (FOIA) |                                |
| request for research data relating  | \(3\) Under paragraph (g) of   |
| to published research findings      | the clause, the title shall    |
| produced under an award that were   | read "Contracts and Subawards  |
| used by the Federal Government in   | Under the Award" and, in that  |
| developing an agency action that    | paragraph, "subcontract" and   |
| has the force and effect of law,    | "subcontractor":shall be read  |
| the Federal awarding agency shall   | as "contract" or "subaward."   |
| request, and the recipient shall    |                                |
| provide, within a reasonable time,  | \(4\) Under subparagraph       |
| the research data so that they can  | (g)(2) of the clause, if a     |
| be made available to the public     | contract or subaward is to be  |
| through the procedures established  | made to any organization other |
| under the FOIA. If the Federal      | than a non-profit organization |
| awarding agency obtains the         | or small business firm, as     |
| research data solely in response to | defined in paragraph (a) of    |
| a FOIA request, the agency may      | the clause, the recipient      |
| charge the requester a reasonable   | shall contact the cognizant    |
| fee equaling the full incremental   | awarding agency official to    |
| cost of obtaining the research      | ascertain the appropriate      |
| data. This fee should reflect costs | patent clause.                 |
| incurred by the agency, the         |                                |
| recipient, and applicable           | \(e\) See the agency-specific  |
| subrecipients. This fee is in       | requirements of the award for  |
| addition to any fees the agency may | the point of contact for       |
| assess under the FOIA (5 U.S.C.     | communications on matters      |
| 552(a)(4)(A)).                      | relating to the clause.        |
|                                     |                                |
| \(2\) The following definitions     |                                |
| apply for purposes of paragraph (d) |                                |
| of this section:                    |                                |
|                                     |                                |
| \(i\) Research data is defined as   |                                |
| the recorded factual material       |                                |
| commonly accepted in the scientific |                                |
| community as necessary to validate  |                                |
| research findings, but not any of   |                                |
| the following: preliminary          |                                |
| analyses, drafts of scientific      |                                |
| papers, plans for future research,  |                                |
| peer reviews, or communications     |                                |
| with colleagues. This \"recorded\"  |                                |
| material excludes physical objects  |                                |
| (e.g., laboratory samples).         |                                |
| Research data also do not include:  |                                |
|                                     |                                |
| \(A\) Trade secrets, commercial     |                                |
| information, materials necessary to |                                |
| be held confidential by a           |                                |
| researcher until they are           |                                |
| published, or similar information   |                                |
| which is protected under law; and   |                                |
|                                     |                                |
| \(B\) Personnel and medical         |                                |
| information and similar information |                                |
| the disclosure of which would       |                                |
| constitute a clearly unwarranted    |                                |
| invasion of personal privacy, such  |                                |
| as information that could be used   |                                |
| to identify a particular person in  |                                |
| a research study.                   |                                |
|                                     |                                |
| \(ii\) Published is defined as      |                                |
| either when:                        |                                |
|                                     |                                |
| \(A\) Research findings are         |                                |
| published in a peer-reviewed        |                                |
| scientific or technical journal; or |                                |
|                                     |                                |
| \(B\) A Federal agency publicly and |                                |
| officially cites the research       |                                |
| findings in support of an agency    |                                |
| action that has the force and       |                                |
| effect of law.                      |                                |
|                                     |                                |
| \(iii\) Used by the Federal         |                                |
| Government in developing an agency  |                                |
| action that has the force and       |                                |
| effect of law is defined as when an |                                |
| agency publicly and officially      |                                |
| cites the research findings in      |                                |
| support of an agency action that    |                                |
| has the force and effect of law.    |                                |
|                                     |                                |
| \(e\) Title to intangible property  |                                |
| and debt instruments acquired under |                                |
| an award or subaward vests upon     |                                |
| acquisition in the recipient. The   |                                |
| recipient shall use that property   |                                |
| for the originally-authorized       |                                |
| purpose, and the recipient shall    |                                |
| not encumber the property without   |                                |
| approval of the Federal awarding    |                                |
| agency. When no longer needed for   |                                |
| the originally authorized purpose,  |                                |
| disposition of the intangible       |                                |
| property shall occur in accordance  |                                |
| with the provisions of paragraph    |                                |
| \_\_\_.34(g).                       |                                |
+-------------------------------------+--------------------------------+
| \_\_\_.37 Property trust            | 37\. **Property trust          |
| relationship. Real property,        | relationship**. Section        |
| equipment, intangible property and  | \_\_\_.37 of OMB Circular      |
| debt instruments that are acquired  | A‑110 applies to real          |
| or improved with Federal funds      | property, equipment and        |
| shall be held in trust by the       | intangible property acquired   |
| recipient as trustee for the        | or improved with Federal funds |
| beneficiaries of the project or     | under the award. This Article  |
| program under which the property    | imposes no additional          |
| was acquired or improved. Agencies  | requirements for notices of    |
| may require recipients to record    | record over and above any      |
| liens or other appropriate notices  | described in Articles 32       |
| of record to indicate that personal | through 36 of these R&R        |
| or real property has been acquired  | General Terms and Conditions   |
| or improved with Federal funds and  | and the associated             |
| that use and disposition conditions | agency-specific requirements.  |
| apply to the property.              |                                |
+-------------------------------------+--------------------------------+
|                                     |                                |
+-------------------------------------+--------------------------------+
| Procurement Standards               | Procurement Standards          |
|                                     |                                |
| \_\_\_.40 Purpose of procurement    | 40\. **Procurement**. The      |
| standards. Sections \_\_\_.41       | recipient shall maintain a     |
| through \_\_\_.48 set forth         | procurement system that, at a  |
| standards for use by recipients in  | minimum, meets the             |
| establishing procedures for the     | requirements of sections       |
| procurement of supplies and other   | \_\_\_.41 through \_\_\_.48 of |
| expendable property, equipment,     | OMB Circular A-110, with the   |
| real property and other services    | following clarifications:      |
| with Fedral funds. These standards  |                                |
| are furnished to ensure that such   | \(a\) In paragraphs (e)(2)     |
| materials and services are obtained | through (5) of section         |
| in an effective manner and in       | \_\_\_.44, section \_\_.46,    |
| compliance with the provisions of   | and paragraphs (a) and (b) of  |
| applicable Federal statutes and     | section \_\_\_.48 of OMB       |
| executive orders. No additional     | Circular A-110, the term       |
| procurement standards or            | "small purchase threshold" is  |
| requirements shall be imposed by    | replaced by "simplified        |
| the Federal awarding agencies upon  | acquisition threshold," the    |
| recipients, unless specifically     | term that now is defined at 41 |
| required by Federal statute or      | U.S.C. 403(11). The simplified |
| executive order or approved by OMB. | acquisition threshold          |
|                                     | currently is \$100,000.        |
| \_\_\_.41 Recipient                 |                                |
| responsibilities. The standards     | \(b\) In paragraph (e) of      |
| contained in this section do not    | section \_\_\_.48 of OMB       |
| relieve the recipient of the        | Circular A-110, the words "all |
| contractual responsibilities        | contracts, including small     |
| arising under its contract(s). The  | purchases" is replaced by the  |
| recipient is the responsible        | words "all contracts,          |
| authority, without recourse to the  | including those for amounts    |
| Federal awarding agency, regarding  | less than the simplified       |
| the settlement and satisfaction of  | acquisition threshold."        |
| all contractual and administrative  |                                |
| issues arising out of procurements  | \(c\) The reference in         |
| entered into in support of an award | paragraph (e) of section       |
| or other agreement. This includes   | \_\_\_.48 of OMB Circular      |
| disputes, claims, protests of       | A-110 to "Appendix A to this   |
| award, source evaluation or other   | Circular" is replaced by a     |
| matters of a contractual nature.    | reference to Appendix A of     |
| Matters concerning violation of     | these general terms and        |
| statute are to be referred to such  | conditions.                    |
| Federal, State or local authority   |                                |
| as may have proper jurisdiction.    | \(d\) The recipient shall give |
|                                     | preference in its procurements |
| \_\_\_.42 Codes of conduct. The     | using Federal funds to the     |
| recipient shall maintain written    | purchase of recycled products  |
| standards of conduct governing the  | pursuant to the EPA guidelines |
| performance of its employees        | in 40 CFR parts 247‑254 if it  |
| engaged in the award and            | is a State or local            |
| administration of contracts. No     | institution of higher          |
| employee, officer, or agent shall   | education, hospital, or        |
| participate in the selection,       | non‑profit organization to     |
| award, or administration of a       | which the Resource             |
| contract supported by Federal funds | Conservation and Recovery Act  |
| if a real or apparent conflict of   | (RCRA) applies, in accordance  |
| interest would be involved. Such a  | with section \_\_\_.16 of OMB  |
| conflict would arise when the       | Circular A‑110.                |
| employee, officer, or agent, any    |                                |
| member of his or her immediate      | \(e\) The recipient's          |
| family, his or her partner, or an   | procurement system, in its     |
| organization which employs or is    | essential elements, shall      |
| about to employ any of the parties  | remain as approved by the      |
| indicated herein, has a financial   | Office of Naval Research (ONR) |
| or other interest in the firm       | and the ONR shall be notified  |
| selected for an award. The          | of any major change(s) to the  |
| officers, employees, and agents of  | approved system, if the ONR    |
| the recipient shall neither solicit | has reviewed and approved the  |
| nor accept gratuities, favors, or   | recipient's procurement system |
| anything of monetary value from     | for any of the following       |
| contractors, or parties to          | reasons:                       |
| subagreements. However, recipients  |                                |
| may set standards for situations in | > \(1\) The ONR is the         |
| which the financial interest is not | > cognizant Federal agency for |
| substantial or the gift is an       | > the recipient or has         |
| unsolicited item of nominal value.  | > reviewed the recipient's     |
| The standards of conduct shall      | > procurement system at the    |
| provide for disciplinary actions to | > request of another Federal   |
| be applied for violations of such   | > awarding agency.             |
| standards by officers, employees,   | >                              |
| or agents of the recipient.         | > \(2\) The recipient also     |
|                                     | > receives Federal procurement |
| \_\_\_.43 Competition. All          | > contracts; the               |
| procurement transactions shall be   | > administrative contracting   |
| conducted in a manner to provide,   | > officer has determined that  |
| to the maximum extent practical,    | > there is a need for a        |
| open and free competition. The      | > contractor's purchasing      |
| recipient shall be alert to         | > system review, in accordance |
| organizational conflicts of         | > with 48 CFR 44.302 in the    |
| interest as well as noncompetitive  | > Federal Acquisition          |
| practices among contractors that    | > Regulation; and the ONR is   |
| may restrict or eliminate           | > the office responsible for   |
| competition or otherwise restrain   | > conducting the review.       |
| trade. In order to ensure objective |                                |
| contractor performance and          |                                |
| eliminate unfair competitive        |                                |
| advantage, contractors that develop |                                |
| or draft specifications,            |                                |
| requirements, statements of work,   |                                |
| invitations for bids and/or         |                                |
| requests for proposals shall be     |                                |
| excluded from competing for such    |                                |
| procurements. Awards shall be made  |                                |
| to the bidder or offeror whose bid  |                                |
| or offer is responsive to the       |                                |
| solicitation and is most            |                                |
| advantageous to the recipient,      |                                |
| price, quality and other factors    |                                |
| considered. Solicitations shall     |                                |
| clearly set forth all requirements  |                                |
| that the bidder or offeror shall    |                                |
| fulfill in order for the bid or     |                                |
| offer to be evaluated by the        |                                |
| recipient. Any and all bids or      |                                |
| offers may be rejected when it is   |                                |
| in the recipient\'s interest to do  |                                |
| so.                                 |                                |
|                                     |                                |
| \_\_\_.44 Procurement procedures.   |                                |
|                                     |                                |
| \(a\) All recipients shall          |                                |
| establish written procurement       |                                |
| procedures. These procedures shall  |                                |
| provide for, at a minimum, that     |                                |
| (1), (2) and (3) apply.             |                                |
|                                     |                                |
| \(1\) Recipients avoid purchasing   |                                |
| unnecessary items.                  |                                |
|                                     |                                |
| \(2\) Where appropriate, an         |                                |
| analysis is made of lease and       |                                |
| purchase alternatives to determine  |                                |
| which would be the most economical  |                                |
| and practical procurement for the   |                                |
| Federal Government.                 |                                |
|                                     |                                |
| \(3\) Solicitations for goods and   |                                |
| services provide for all of the     |                                |
| following.                          |                                |
|                                     |                                |
| \(i\) A clear and accurate          |                                |
| description of the technical        |                                |
| requirements for the material,      |                                |
| product or service to be procured.  |                                |
| In competitive procurements, such a |                                |
| description shall not contain       |                                |
| features which unduly restrict      |                                |
| competition.                        |                                |
|                                     |                                |
| \(ii\) Requirements which the       |                                |
| bidder/offeror must fulfill and all |                                |
| other factors to be used in         |                                |
| evaluating bids or proposals.       |                                |
|                                     |                                |
| \(iii\) A description, whenever     |                                |
| practicable, of technical           |                                |
| requirements in terms of functions  |                                |
| to be performed or performance      |                                |
| required, including the range of    |                                |
| acceptable characteristics or       |                                |
| minimum acceptable standards.       |                                |
|                                     |                                |
| \(iv\) The specific features of     |                                |
| \"brand name or equal\"             |                                |
| descriptions that bidders are       |                                |
| required to meet when such items    |                                |
| are included in the solicitation.   |                                |
|                                     |                                |
| \(v\) The acceptance, to the extent |                                |
| practicable and economically        |                                |
| feasible, of products and services  |                                |
| dimensioned in the metric system of |                                |
| measurement.                        |                                |
|                                     |                                |
| \(vi\) Preference, to the extent    |                                |
| practicable and economically        |                                |
| feasible, for products and services |                                |
| that conserve natural resources and |                                |
| protect the environment and are     |                                |
| energy efficient.                   |                                |
|                                     |                                |
| \(b\) Positive efforts shall be     |                                |
| made by recipients to utilize small |                                |
| businesses, minority-owned firms,   |                                |
| and women\'s business enterprises,  |                                |
| whenever possible. Recipients of    |                                |
| Federal awards shall take all of    |                                |
| the following steps to further this |                                |
| goal.                               |                                |
|                                     |                                |
| \(1\) Ensure that small businesses, |                                |
| minority-owned firms, and women\'s  |                                |
| business enterprises are used to    |                                |
| the fullest extent practicable.     |                                |
|                                     |                                |
| \(2\) Make information on           |                                |
| forthcoming opportunities available |                                |
| and arrange time frames for         |                                |
| purchases and contracts to          |                                |
| encourage and facilitate            |                                |
| participation by small businesses,  |                                |
| minority-owned firms, and women\'s  |                                |
| business enterprises.               |                                |
|                                     |                                |
| \(3\) Consider in the contract      |                                |
| process whether firms competing for |                                |
| larger contracts intend to          |                                |
| subcontract with small businesses,  |                                |
| minority-owned firms, and women\'s  |                                |
| business enterprises.               |                                |
|                                     |                                |
| \(4\) Encourage contracting with    |                                |
| consortiums of small businesses,    |                                |
| minority-owned firms and women\'s   |                                |
| business enterprises when a         |                                |
| contract is too large for one of    |                                |
| these firms to handle individually. |                                |
|                                     |                                |
| \(5\) Use the services and          |                                |
| assistance, as appropriate, of such |                                |
| organizations as the Small Business |                                |
| Administration and the Department   |                                |
| of Commerce\'s Minority Business    |                                |
| Development Agency in the           |                                |
| solicitation and utilization of     |                                |
| small businesses, minority- owned   |                                |
| firms and women\'s business         |                                |
| enterprises.                        |                                |
|                                     |                                |
| \(c\) The type of procuring         |                                |
| instruments used (e.g., fixed price |                                |
| contracts, cost reimbursable        |                                |
| contracts, purchase orders, and     |                                |
| incentive contracts) shall be       |                                |
| determined by the recipient but     |                                |
| shall be appropriate for the        |                                |
| particular procurement and for      |                                |
| promoting the best interest of the  |                                |
| program or project involved. The    |                                |
| \"cost-plus-a-percentage-of-cost\"  |                                |
| or \"percentage of construction     |                                |
| cost\" methods of contracting shall |                                |
| not be used.                        |                                |
|                                     |                                |
| \(d\) Contracts shall be made only  |                                |
| with responsible contractors who    |                                |
| possess the potential ability to    |                                |
| perform successfully under the      |                                |
| terms and conditions of the         |                                |
| proposed procurement. Consideration |                                |
| shall be given to such matters as   |                                |
| contractor integrity, record of     |                                |
| past performance, financial and     |                                |
| technical resources or              |                                |
| accessibility to other necessary    |                                |
| resources. In certain               |                                |
| circumstances, contracts with       |                                |
| certain parties are restricted by   |                                |
| agencies\' implementation of E.O.s  |                                |
| 12549 and 12689, \"Debarment and    |                                |
| Suspension.\"                       |                                |
|                                     |                                |
| \(e\) Recipients shall, on request, |                                |
| make available for the Federal      |                                |
| awarding agency, pre-award review   |                                |
| and procurement documents, such as  |                                |
| request for proposals or            |                                |
| invitations for bids, independent   |                                |
| cost estimates, etc., when any of   |                                |
| the following conditions apply.     |                                |
|                                     |                                |
| \(1\) A recipient\'s procurement    |                                |
| procedures or operation fails to    |                                |
| comply with the procurement         |                                |
| standards in the Federal awarding   |                                |
| agency\'s implementation of this    |                                |
| Circular.                           |                                |
|                                     |                                |
| \(2\) The procurement is expected   |                                |
| to exceed the small purchase        |                                |
| threshold fixed at 41 U.S.C. 403    |                                |
| (11) (currently \$25,000) and is to |                                |
| be awarded without competition or   |                                |
| only one bid or offer is received   |                                |
| in response to a solicitation.      |                                |
|                                     |                                |
| \(3\) The procurement, which is     |                                |
| expected to exceed the small        |                                |
| purchase threshold, specifies a     |                                |
| \"brand name\" product.             |                                |
|                                     |                                |
| \(4\) The proposed award over the   |                                |
| small purchase threshold is to be   |                                |
| awarded to other than the apparent  |                                |
| low bidder under a sealed bid       |                                |
| procurement.                        |                                |
|                                     |                                |
| \(5\) A proposed contract           |                                |
| modification changes the scope of a |                                |
| contract or increases the contract  |                                |
| amount by more than the amount of   |                                |
| the small purchase threshold.       |                                |
|                                     |                                |
| \_\_\_.45 Cost and price analysis.  |                                |
| Some form of cost or price analysis |                                |
| shall be made and documented in the |                                |
| procurement files in connection     |                                |
| with every procurement action.      |                                |
| Price analysis may be accomplished  |                                |
| in various ways, including the      |                                |
| comparison of price quotations      |                                |
| submitted, market prices and        |                                |
| similar indicia, together with      |                                |
| discounts. Cost analysis is the     |                                |
| review and evaluation of each       |                                |
| element of cost to determine        |                                |
| reasonableness, allocability and    |                                |
| allowability.                       |                                |
|                                     |                                |
| \_\_\_.46 Procurement records.      |                                |
| Procurement records and files for   |                                |
| purchases in excess of the small    |                                |
| purchase threshold shall include    |                                |
| the following at a minimum: (a)     |                                |
| basis for contractor selection, (b) |                                |
| justification for lack of           |                                |
| competition when competitive bids   |                                |
| or offers are not obtained, and (c) |                                |
| basis for award cost or price.      |                                |
|                                     |                                |
| \_\_\_.47 Contract administration.  |                                |
| A system for contract               |                                |
| administration shall be maintained  |                                |
| to ensure contractor conformance    |                                |
| with the terms, conditions and      |                                |
| specifications of the contract and  |                                |
| to ensure adequate and timely       |                                |
| follow up of all purchases.         |                                |
| Recipients shall evaluate           |                                |
| contractor performance and          |                                |
| document, as appropriate, whether   |                                |
| contractors have met the terms,     |                                |
| conditions and specifications of    |                                |
| the contract.                       |                                |
|                                     |                                |
| \_\_\_.48 Contract provisions. The  |                                |
| recipient shall include, in         |                                |
| addition to provisions to define a  |                                |
| sound and complete agreement, the   |                                |
| following provisions in all         |                                |
| contracts. The following provisions |                                |
| shall also be applied to            |                                |
| subcontracts.                       |                                |
|                                     |                                |
| \(a\) Contracts in excess of the    |                                |
| small purchase threshold shall      |                                |
| contain contractual provisions or   |                                |
| conditions that allow for           |                                |
| administrative, contractual, or     |                                |
| legal remedies in instances in      |                                |
| which a contractor violates or      |                                |
| breaches the contract terms, and    |                                |
| provide for such remedial actions   |                                |
| as may be appropriate.              |                                |
|                                     |                                |
| \(b\) All contracts in excess of    |                                |
| the small purchase threshold shall  |                                |
| contain suitable provisions for     |                                |
| termination by the recipient,       |                                |
| including the manner by which       |                                |
| termination shall be effected and   |                                |
| the basis for settlement. In        |                                |
| addition, such contracts shall      |                                |
| describe conditions under which the |                                |
| contract may be terminated for      |                                |
| default as well as conditions where |                                |
| the contract may be terminated      |                                |
| because of circumstances beyond the |                                |
| control of the contractor.          |                                |
|                                     |                                |
| \(c\) Except as otherwise required  |                                |
| by statute, an award that requires  |                                |
| the contracting (or subcontracting) |                                |
| for construction or facility        |                                |
| improvements shall provide for the  |                                |
| recipient to follow its own         |                                |
| requirements relating to bid        |                                |
| guarantees, performance bonds, and  |                                |
| payment bonds unless the            |                                |
| construction contract or            |                                |
| subcontract exceeds \$100,000. For  |                                |
| those contracts or subcontracts     |                                |
| exceeding \$100,000, the Federal    |                                |
| awarding agency may accept the      |                                |
| bonding policy and requirements of  |                                |
| the recipient, provided the Federal |                                |
| awarding agency has made a          |                                |
| determination that the Federal      |                                |
| Government\'s interest is           |                                |
| adequately protected. If such a     |                                |
| determination has not been made,    |                                |
| the minimum requirements shall be   |                                |
| as follows.                         |                                |
|                                     |                                |
| \(1\) A bid guarantee from each     |                                |
| bidder equivalent to five percent   |                                |
| of the bid price. The \"bid         |                                |
| guarantee\" shall consist of a firm |                                |
| commitment such as a bid bond,      |                                |
| certified check, or other           |                                |
| negotiable instrument accompanying  |                                |
| a bid as assurance that the bidder  |                                |
| shall, upon acceptance of his bid,  |                                |
| execute such contractual documents  |                                |
| as may be required within the time  |                                |
| specified.                          |                                |
|                                     |                                |
| \(2\) A performance bond on the     |                                |
| part of the contractor for 100      |                                |
| percent of the contract price. A    |                                |
| \"performance bond\" is one         |                                |
| executed in connection with a       |                                |
| contract to secure fulfillment of   |                                |
| all the contractor\'s obligations   |                                |
| under such contract.                |                                |
|                                     |                                |
| \(3\) A payment bond on the part of |                                |
| the contractor for 100 percent of   |                                |
| the contract price. A \"payment     |                                |
| bond\" is one executed in           |                                |
| connection with a contract to       |                                |
| assure payment as required by       |                                |
| statute of all persons supplying    |                                |
| labor and material in the execution |                                |
| of the work provided for in the     |                                |
| contract.                           |                                |
|                                     |                                |
| \(4\) Where bonds are required in   |                                |
| the situations described herein,    |                                |
| the bonds shall be obtained from    |                                |
| companies holding certificates of   |                                |
| authority as acceptable sureties    |                                |
| pursuant to 31 CFR part 223,        |                                |
| \"Surety Companies Doing Business   |                                |
| with the United States.\"           |                                |
|                                     |                                |
| \(d\) All negotiated contracts      |                                |
| (except those for less than the     |                                |
| small purchase threshold) awarded   |                                |
| by recipients shall include a       |                                |
| provision to the effect that the    |                                |
| recipient, the Federal awarding     |                                |
| agency, the Comptroller General of  |                                |
| the United States, or any of their  |                                |
| duly authorized representatives,    |                                |
| shall have access to any books,     |                                |
| documents, papers and records of    |                                |
| the contractor which are directly   |                                |
| pertinent to a specific program for |                                |
| the purpose of making audits,       |                                |
| examinations, excerpts and          |                                |
| transcriptions.                     |                                |
|                                     |                                |
| \(e\) All contracts, including      |                                |
| small purchases, awarded by         |                                |
| recipients and their contractors    |                                |
| shall contain the procurement       |                                |
| provisions of Appendix A to this    |                                |
| Circular, as applicable.            |                                |
+-------------------------------------+--------------------------------+
| Reports and Records                 | Reports and Records            |
|                                     |                                |
| \_\_\_.50 Purpose of reports and    | 50\. **Purpose of reports and  |
| records. Sections \_\_\_.51 through | records**. Sections \_\_\_.51  |
| \_\_\_.53 set forth the procedures  | through \_\_\_.53 set forth    |
| for monitoring and reporting on the | the procedures for monitoring  |
| recipient\'s financial and program  | and reporting on the           |
| performance and the necessary       | recipient\'s financial and     |
| standard reporting forms. They also | program performance and the    |
| set forth record retention          | necessary standard reporting   |
| requirements.                       | forms. They also set forth     |
|                                     | record retention requirements. |
+-------------------------------------+--------------------------------+
| \_\_\_.51 Monitoring and reporting  | 51\. **[Monitoring and         |
| program performance.                | reporting program              |
|                                     | performance]{.underline}**.    |
| \(a\) Recipients are responsible    | The recipient's                |
| for managing and monitoring each    | responsibilities for           |
| project, program, subaward,         | programmatic monitoring and    |
| function or activity supported by   | reporting are as stated in     |
| the award. Recipients shall monitor | paragraphs (a) through (g) of  |
| subawards to ensure subrecipients   | section \_\_\_.51 of OMB       |
| have met the audit requirements as  | Circular A-110, with the       |
| delineated in Section \_\_\_.26.    | following additions and        |
|                                     | clarifications:                |
| \(b\) The Federal awarding agency   |                                |
| shall prescribe the frequency with  | \(a\)                          |
| which the performance reports shall | *                              |
| be submitted. Except as provided in | *[Publications]{.underline}**. |
| paragraph \_\_\_.51(f), performance | The recipient is expected to   |
| reports shall not be required more  | publish or otherwise make      |
| frequently than quarterly or, less  | publicly available the results |
| frequently than annually. Annual    | of the work conducted under    |
| reports shall be due 90 calendar    | the award. An acknowledgment   |
| days after the grant year;          | of awarding agency support     |
| quarterly or semi-annual reports    | must appear in the publication |
| shall be due 30 days after the      | of any material, whether       |
| reporting period. The Federal       | copyrighted or not, based on   |
| awarding agency may require annual  | or developed under this        |
| reports before the anniversary      | project, as follows:           |
| dates of multiple year awards in    |                                |
| lieu of these requirements. The     | \(1\) The acknowledgment will  |
| final performance reports are due   | be: "This material is based    |
| 90 calendar days after the          | upon work supported by the     |
| expiration or termination of the    | \[name of awarding agency(ies) |
| award.                              | under Award No. \[recipient    |
|                                     | should enter the awarding      |
| \(c\) If inappropriate, a final     | agency(ies) award              |
| technical or performance report     | number(s)\]."                  |
| shall not be required after         |                                |
| completion of the project.          | > (2)For all materials, except |
|                                     | > scientific articles or       |
| \(d\) When required, performance    | > papers published in          |
| reports shall generally contain,    | > scientific journals, the     |
| for each award, brief information   | > disclaimer will be: "Any     |
| on each of the following.           | > opinions, findings, and      |
|                                     | > conclusions or               |
| \(1\) A comparison of actual        | > recommendations expressed in |
| accomplishments with the goals and  | > this publication are those   |
| objectives established for the      | > of the author(s) and do not  |
| period, the findings of the         | > necessarily reflect the      |
| investigator, or both. Whenever     | > views of the \[name(s) of    |
| appropriate and the output of       | > awarding agency(ies)\]."     |
| programs or projects can be readily |                                |
| quantified, such quantitative data  | \(b\) **Technical reports**.   |
| should be related to cost data for  |                                |
| computation of unit costs.          | > (1)The final technical       |
|                                     | > report, in accordance with   |
| \(2\) Reasons why established goals | > paragraphs (b) through (d)   |
| were not met, if appropriate.       | > of section \_\_\_.51, is due |
|                                     | > 90 calendar days after the   |
| \(3\) Other pertinent information   | > expiration or termination of |
| including, when appropriate,        | > the award, unless the        |
| analysis and explanation of cost    | > agency‑specific or           |
| overruns or high unit costs.        | > award‑specific terms and     |
|                                     | > conditions state that a      |
| \(e\) Recipients shall not be       | > final report is not          |
| required to submit more than the    | > required.                    |
| original and two copies of          | >                              |
| performance reports.                | > \(2\) The recipient is       |
|                                     | > encouraged to submit         |
| \(f\) Recipients shall immediately  | > technical reports in         |
| notify the Federal awarding agency  | > computer or electronic       |
| of developments that have a         | > formats. When paper copies   |
| significant impact on the           | > are submitted, the recipient |
| award-supported activities. Also,   | > shall provide an original    |
| notification shall be given in the  | > and two copies, as provided  |
| case of problems, delays, or        | > in pargraph (e) of           |
| adverse conditions which materially | > section \_\_\_.51.           |
| impair the ability to meet the      |                                |
| objectives of the award. This       | \(c\) **Site visits**. With    |
| notification shall include a        | respect to paragraph (g) of    |
| statement of the action taken or    | section \_\_\_.51, the Federal |
| contemplated, and any assistance    | awarding agency's authorized   |
| needed to resolve the situation.    | representatives have the right |
|                                     | to make site visits at all     |
| \(g\) Federal awarding agencies may | reasonable times to review     |
| make site visits, as needed.        | project accomplishments and    |
|                                     | provide such technical         |
| \(h\) Federal awarding agencies     | assistance as may be required. |
| shall comply with clearance         | All site visits and            |
| requirements of 5 CFR part 1320     | evaluations shall be performed |
| when requesting performance data    | in a manner that does not      |
| from recipients.                    | unduly interfere with or delay |
|                                     | the work.                      |
+-------------------------------------+--------------------------------+
| \_\_\_.52 Financial reporting.      | 52\. **Financial reporting**.  |
|                                     | If payments are made in        |
| \(a\) The following forms or such   | advance, in accordance with    |
| other forms as may be approved by   | Article 22.(a) of these        |
| OMB are authorized for obtaining    | general terms and conditions,  |
| financial information from          | the Federal Cash Transactions  |
| recipients.                         | Report (SF‑272) or its         |
|                                     | electronic equivalent shall be |
| \(1\) SF-269 or SF-269A, Financial  | submitted within 15 days       |
| Status Report.                      | following the end of each      |
|                                     | funding quarter.               |
| \(i\) Each Federal awarding agency  |                                |
| shall require recipients to use the |                                |
| SF-269 or SF-269A to report the     |                                |
| status of funds for all             |                                |
| nonconstruction projects or         |                                |
| programs. A Federal awarding agency |                                |
| may, however, have the option of    |                                |
| not requiring the SF-269 or SF-269A |                                |
| when the SF-270, Request for        |                                |
| Advance or Reimbursement, or        |                                |
| SF-272, Report of Federal Cash      |                                |
| Transactions, is determined to      |                                |
| provide adequate information to     |                                |
| meet its needs, except that a final |                                |
| SF-269 or SF-269A shall be required |                                |
| at the completion of the project    |                                |
| when the SF-270 is used only for    |                                |
| advances.                           |                                |
|                                     |                                |
| \(ii\) The Federal awarding agency  |                                |
| shall prescribe whether the report  |                                |
| shall be on a cash or accrual       |                                |
| basis. If the Federal awarding      |                                |
| agency requires accrual information |                                |
| and the recipient\'s accounting     |                                |
| records are not normally kept on    |                                |
| the accrual basis, the recipient    |                                |
| shall not be required to convert    |                                |
| its accounting system, but shall    |                                |
| develop such accrual information    |                                |
| through best estimates based on an  |                                |
| analysis of the documentation on    |                                |
| hand.                               |                                |
|                                     |                                |
| \(iii\) The Federal awarding agency |                                |
| shall determine the frequency of    |                                |
| the Financial Status Report for     |                                |
| each project or program,            |                                |
| considering the size and complexity |                                |
| of the particular project or        |                                |
| program. However, the report shall  |                                |
| not be required more frequently     |                                |
| than quarterly or less frequently   |                                |
| than annually. A final report shall |                                |
| be required at the completion of    |                                |
| the agreement.                      |                                |
|                                     |                                |
| \(iv\) The Federal awarding agency  |                                |
| shall require recipients to submit  |                                |
| the SF-269 or SF-269A (an original  |                                |
| and no more than two copies) no     |                                |
| later than 30 days after the end of |                                |
| each specified reporting period for |                                |
| quarterly and semi-annual reports,  |                                |
| and 90 calendar days for annual and |                                |
| final reports. Extensions of        |                                |
| reporting due dates may be approved |                                |
| by the Federal awarding agency upon |                                |
| request of the recipient.           |                                |
|                                     |                                |
| \(2\) SF-272, Report of Federal     |                                |
| Cash Transactions.                  |                                |
|                                     |                                |
| \(i\) When funds are advanced to    |                                |
| recipients the Federal awarding     |                                |
| agency shall require each recipient |                                |
| to submit the SF-272 and, when      |                                |
| necessary, its continuation sheet,  |                                |
| SF-272a. The Federal awarding       |                                |
| agency shall use this report to     |                                |
| monitor cash advanced to recipients |                                |
| and to obtain disbursement          |                                |
| information for each agreement with |                                |
| the recipients.                     |                                |
|                                     |                                |
| \(ii\) Federal awarding agencies    |                                |
| may require forecasts of Federal    |                                |
| cash requirements in the            |                                |
| \"Remarks\" section of the report.  |                                |
|                                     |                                |
| \(iii\) When practical and deemed   |                                |
| necessary, Federal awarding         |                                |
| agencies may require recipients to  |                                |
| report in the \"Remarks\" section   |                                |
| the amount of cash advances         |                                |
| received in excess of three days.   |                                |
| Recipients shall provide short      |                                |
| narrative explanations of actions   |                                |
| taken to reduce the excess          |                                |
| balances.                           |                                |
|                                     |                                |
| \(iv\) Recipients shall be required |                                |
| to submit not more than the         |                                |
| original and two copies of the      |                                |
| SF-272 15 calendar days following   |                                |
| the end of each quarter. The        |                                |
| Federal awarding agencies may       |                                |
| require a monthly report from those |                                |
| recipients receiving advances       |                                |
| totaling \$1 million or more per    |                                |
| year.                               |                                |
|                                     |                                |
| \(v\) Federal awarding agencies may |                                |
| waive the requirement for           |                                |
| submission of the SF-272 for any    |                                |
| one of the following reasons: (1)   |                                |
| When monthly advances do not exceed |                                |
| \$25,000 per recipient, provided    |                                |
| that such advances are monitored    |                                |
| through other forms contained in    |                                |
| this section; (2) If, in the        |                                |
| Federal awarding agency\'s opinion, |                                |
| the recipient\'s accounting         |                                |
| controls are adequate to minimize   |                                |
| excessive Federal advances; or, (3) |                                |
| When the electronic payment         |                                |
| mechanisms provide adequate data.   |                                |
|                                     |                                |
| \(b\) When the Federal awarding     |                                |
| agency needs additional information |                                |
| or more frequent reports, the       |                                |
| following shall be observed.        |                                |
|                                     |                                |
| \(1\) When additional information   |                                |
| is needed to comply with            |                                |
| legislative requirements, Federal   |                                |
| awarding agencies shall issue       |                                |
| instructions to require recipients  |                                |
| to submit such information under    |                                |
| the \"Remarks\" section of the      |                                |
| reports.                            |                                |
|                                     |                                |
| \(2\) When a Federal awarding       |                                |
| agency determines that a            |                                |
| recipient\'s accounting system does |                                |
| not meet the standards in Section   |                                |
| \_\_\_.21, additional pertinent     |                                |
| information to further monitor      |                                |
| awards may be obtained upon written |                                |
| notice to the recipient until such  |                                |
| time as the system is brought up to |                                |
| standard. The Federal awarding      |                                |
| agency, in obtaining this           |                                |
| information, shall comply with      |                                |
| report clearance requirements of 5  |                                |
| CFR part 1320.                      |                                |
|                                     |                                |
| \(3\) Federal awarding agencies are |                                |
| encouraged to shade out any line    |                                |
| item on any report if not           |                                |
| necessary.                          |                                |
|                                     |                                |
| \(4\) Federal awarding agencies may |                                |
| accept the identical information    |                                |
| from the recipients in machine      |                                |
| readable format or computer         |                                |
| printouts or electronic outputs in  |                                |
| lieu of prescribed formats.         |                                |
|                                     |                                |
| \(5\) Federal awarding agencies may |                                |
| provide computer or electronic      |                                |
| outputs to recipients when such     |                                |
| expedites or contributes to the     |                                |
| accuracy of reporting.              |                                |
+-------------------------------------+--------------------------------+
| \_\_\_.53 Retention and access      | 53\. **Retention and access    |
| requirements for records.           | requirements for records**.    |
|                                     | The rights and                 |
| \(a\) This section sets forth       | responsibilities of the        |
| requirements for record retention   | recipient and Federal awarding |
| and access to records for awards to | agency are as stated in        |
| recipients. Federal awarding        | section \_\_\_.53 of OMB       |
| agencies shall not impose any other | Circular A‑110, with the       |
| record retention or access          | following clarifications:      |
| requirements upon recipients.       |                                |
|                                     | \(a\) With the exception of    |
| \(b\) Financial records, supporting | types of records described in  |
| documents, statistical records, and | paragraphs (b)(1) through      |
| all other records pertinent to an   | (b)(4) of section \_\_\_.53,   |
| award shall be retained for a       | the recipient must retain      |
| period of three years from the date | financial and programmatic     |
| of submission of the final          | records, supporting documents, |
| expenditure report or, for awards   | statistical records, and all   |
| that are renewed quarterly or       | other records of a recipient   |
| annually, from the date of the      | that are required by the terms |
| submission of the quarterly or      | of a grant, or may reasonably  |
| annual financial report, as         | be considered pertinent to a   |
| authorized by the Federal awarding  | grant, for a period of 3 years |
| agency. The only exceptions are the | from the date the Financial    |
| following.                          | Status Report is submitted.    |
|                                     | Since NSF does not use the     |
| \(1\) If any litigation, claim, or  | Financial Status Report,       |
| audit is started before the         | records for NSF grants must be |
| expiration of the 3-year period,    | kept of a period of 3 years    |
| the records shall be retained until | from the date the final        |
| all litigation, claims or audit     | Federal Cash Transaction       |
| findings involving the records have | Report is submitted.           |
| been resolved and final action      |                                |
| taken.                              | \(b\) In accordance with       |
|                                     | paragraph (c) of               |
| \(2\) Records for real property and | section \_\_\_.53, copies of   |
| equipment acquired with Federal     | original records, either in    |
| funds shall be retained for 3 years | paper or in computer or        |
| after final disposition.            | electronic format, may be      |
|                                     | substituted for the original   |
| \(3\) When records are transferred  | records.                       |
| to or maintained by the Federal     |                                |
| awarding agency, the 3-year         | 54\. "Reporting Potentially    |
| retention requirement is not        | Classifiable Information"      |
| applicable to the recipient.        |                                |
|                                     | a\. **This award is intended   |
| \(4\) Indirect cost rate proposals, | for unclassified, publicly     |
| cost allocations plans, etc. as     | releasable research**. The     |
| specified in paragraph              | recipient will not be granted  |
| \_\_\_.53(g).                       | access to classified           |
|                                     | information. The awarding      |
| \(c\) Copies of original records    | agency does not expect that    |
| may be substituted for the original | the results of the research    |
| records if authorized by the        | project will involve           |
| Federal awarding agency.            | classified information. Under  |
|                                     | certain circumstances,         |
| \(d\) The Federal awarding agency   | however, a classification      |
| shall request transfer of certain   | review of information          |
| records to its custody from         | originated under the award may |
| recipients when it determines that  | be required. The awarding      |
| the records possess long term       | agency may review research     |
| retention value. However, in order  | work generated under this      |
| to avoid duplicate recordkeeping, a | award at any time to determine |
| Federal awarding agency may make    | if it requires classification. |
| arrangements for recipients to      |                                |
| retain any records that are         | b\. Executive Order 12958 (60  |
| continuously needed for joint use.  | Fed. Reg. 19,825 (1995)), as   |
|                                     | amended by Executive Order     |
| \(e\) The Federal awarding agency,  | 13292 (68 Fed. Reg. 15315      |
| the Inspector General, Comptroller  | (2003)) states that basic      |
| General of the United States, or    | scientific research            |
| any of their duly authorized        | information not clearly        |
| representatives, have the right of  | related to the national        |
| timely and unrestricted access to   | security shall not be          |
| any books, documents, papers, or    | classified. Nevertheless, some |
| other records of recipients that    | information concerning (among  |
| are pertinent to the awards, in     | other things) scientific,      |
| order to make audits, examinations, | technological, or economic     |
| excerpts, transcripts and copies of | matters relating to national   |
| such documents. This right also     | security, which includes       |
| includes timely and reasonable      | defense against transnational  |
| access to a recipient\'s personnel  | terrorism, or cryptology may   |
| for the purpose of interview and    | require classification. If a   |
| discussion related to such          | recipient originates           |
| documents. The rights of access in  | information during the course  |
| this paragraph are not limited to   | of this award that it believes |
| the required retention period, but  | requires classification under  |
| shall last as long as records are   | this Executive order, the      |
| retained.                           | recipient must promptly:       |
|                                     |                                |
| \(f\) Unless required by statute,   | 1\. Notify the awarding        |
| no Federal awarding agency shall    | agency's program official or   |
| place restrictions on recipients    | the person identified in the   |
| that limit public access to the     | Agency Specific Requirements.  |
| records of recipients that are      |                                |
| pertinent to an award, except when  | 2\. Submit the information for |
| the Federal awarding agency can     | classification review as       |
| demonstrate that such records shall | directed by the program        |
| be kept confidential and would have | official or by registered mail |
| been exempted from disclosure       | directly to the address        |
| pursuant to the Freedom of          | specified in the Agency        |
| Information Act (5 U.S.C. 552) if   | Specific Requirements.         |
| the records had belonged to the     |                                |
| Federal awarding agency.            | 3\. Restrict access to the     |
|                                     | information to the maximum     |
| \(g\) Indirect cost rate proposals, | extent possible until the      |
| cost allocations plans, etc.        | recipient is informed that the |
| Paragraphs (g)(1) and (g)(2) apply  | information is not classified, |
| to the following types of           | but no longer than thirty (30) |
| documents, and their supporting     | days after receipt by the      |
| records: indirect cost rate         | Federal agency performing the  |
| computations or proposals, cost     | classification review.         |
| allocation plans, and any similar   |                                |
| accounting computations of the rate | c.  If the agency performing   |
| at which a particular group of      |     the classification review  |
| costs is chargeable (such as        |     determines any of the      |
| computer usage chargeback rates or  |     information requires       |
| composite fringe benefit rates).    |     classification, the        |
|                                     |     recipient agrees that the  |
| \(1\) If submitted for negotiation. |     awarding agency may        |
| If the recipient submits to the     |     terminate the award by     |
| Federal awarding agency or the      |     mutual agreement in        |
| subrecipient submits to the         |     accordance with the        |
| recipient the proposal, plan, or    |     termination provisions of  |
| other computation to form the basis |     the award, or otherwise    |
| for negotiation of the rate, then   |     amend it. All material     |
| the 3-year retention period for its |     deemed to be classified    |
| supporting records starts on the    |     must be handled in         |
| date of such submission.            |     accordance with agency     |
|                                     |     instructions.              |
| \(2\) If not submitted for          |                                |
| negotiation. If the recipient is    | d\. If the agency performing   |
| not required to submit to the       | the classification review does |
| Federal awarding agency or the      | not respond within the         |
| subrecipient is not required to     | specified time periods, the    |
| submit to the recipient the         | recipient is under no further  |
| proposal, plan, or other            | obligation to restrict access  |
| computation for negotiation         | to the information.            |
| purposes, then the 3-year retention |                                |
| period for the proposal, plan, or   |                                |
| other computation and its           |                                |
| supporting records starts at the    |                                |
| end of the fiscal year (or other    |                                |
| accounting period) covered by the   |                                |
| proposal, plan, or other            |                                |
| computation.                        |                                |
+-------------------------------------+--------------------------------+
| Termination and Enforcement         | # Termination and Enforcement  |
|                                     |                                |
| \_\_\_.60 Purpose of termination    |                                |
| and enforcement. Sections \_\_\_.61 |                                |
| and \_\_\_.62 set forth uniform     |                                |
| suspension, termination and         |                                |
| enforcement procedures.             |                                |
+-------------------------------------+--------------------------------+
| \_\_\_.61 Termination.              | 61\. **Termination**.          |
|                                     |                                |
| \(a\) Awards may be terminated in   | \(a\) Paragraph (a) of         |
| whole or in part only if (1), (2)   | section \_\_\_.61 of OMB       |
| or (3) apply.                       | Circular A‑110 states the      |
|                                     | conditions under which the     |
| \(1\) By the Federal awarding       | recipient and/or the Federal   |
| agency, if a recipient materially   | awarding agency may terminate  |
| fails to comply with the terms and  | the award before the date of   |
| conditions of an award.             | completion specified in the    |
|                                     | award document and any         |
| \(2\) By the Federal awarding       | amendments thereto.            |
| agency with the consent of the      |                                |
| recipient, in which case the two    | \(b\) The recipient and        |
| parties shall agree upon the        | Federal awarding agency are    |
| termination conditions, including   | responsible for the closeout   |
| the effective date and, in the case | of the terminated award, as    |
| of partial termination, the portion | described in Article 71 of     |
| to be terminated.                   | these terms and conditions.    |
|                                     |                                |
| \(3\) By the recipient upon sending | \(c\) After the termination,   |
| to the Federal awarding agency      | the recipient and the Federal  |
| written notification setting forth  | awarding agency continue to    |
| the reasons for such termination,   | have the rights and            |
| the effective date, and, in the     | responsibilities described in  |
| case of partial termination, the    | Article 72 of these terms and  |
| portion to be terminated. However,  | conditions.                    |
| if the Federal awarding agency      |                                |
| determines in the case of partial   |                                |
| termination that the reduced or     |                                |
| modified portion of the grant will  |                                |
| not accomplish the purposes for     |                                |
| which the grant was made, it may    |                                |
| terminate the grant in its entirety |                                |
| under either paragraphs (a)(1) or   |                                |
| (2).                                |                                |
|                                     |                                |
| \(b\) If costs are allowed under an |                                |
| award, the responsibilities of the  |                                |
| recipient referred to in paragraph  |                                |
| \_\_\_.71(a), including those for   |                                |
| property management as applicable,  |                                |
| shall be considered in the          |                                |
| termination of the award, and       |                                |
| provision shall be made for         |                                |
| continuing responsibilities of the  |                                |
| recipient after termination, as     |                                |
| appropriate.                        |                                |
+-------------------------------------+--------------------------------+
| \_\_\_.62 Enforcement.              | 62\. **Enforcement**. Section  |
|                                     | \_\_\_.62 of OMB Circular      |
| \(a\) Remedies for noncompliance.   | A‑110 specifies the remedies   |
| If a recipient materially fails to  | available to the Federal       |
| comply with the terms and           | awarding agency when the       |
| conditions of an award, whether     | recipient materially fails to  |
| stated in a Federal statute,        | comply with the terms and      |
| regulation, assurance, application, | conditions of the award.       |
| or notice of award, the Federal     | Section \_\_\_.62 also states  |
| awarding agency may, in addition to | the rights and                 |
| imposing any of the special         | responsibilities of the        |
| conditions outlined in Section      | recipient and the Federal      |
| \_\_\_.14, take one or more of the  | awarding agency related to any |
| following actions, as appropriate   | enforcement action.            |
| in the circumstances.               |                                |
|                                     |                                |
| \(1\) Temporarily withhold cash     |                                |
| payments pending correction of the  |                                |
| deficiency by the recipient or more |                                |
| severe enforcement action by the    |                                |
| Federal awarding agency.            |                                |
|                                     |                                |
| \(2\) Disallow (that is, deny both  |                                |
| use of funds and any applicable     |                                |
| matching credit for) all or part of |                                |
| the cost of the activity or action  |                                |
| not in compliance.                  |                                |
|                                     |                                |
| \(3\) Wholly or partly suspend or   |                                |
| terminate the current award.        |                                |
|                                     |                                |
| \(4\) Withhold further awards for   |                                |
| the project or program.             |                                |
|                                     |                                |
| \(5\) Take other remedies that may  |                                |
| be legally available.               |                                |
|                                     |                                |
| \(b\) Hearings and appeals. In      |                                |
| taking an enforcement action, the   |                                |
| awarding agency shall provide the   |                                |
| recipient an opportunity for        |                                |
| hearing, appeal, or other           |                                |
| administrative proceeding to which  |                                |
| the recipient is entitled under any |                                |
| statute or regulation applicable to |                                |
| the action involved.                |                                |
|                                     |                                |
| \(c\) Effects of suspension and     |                                |
| termination. Costs of a recipient   |                                |
| resulting from obligations incurred |                                |
| by the recipient during a           |                                |
| suspension or after termination of  |                                |
| an award are not allowable unless   |                                |
| the awarding agency expressly       |                                |
| authorizes them in the notice of    |                                |
| suspension or termination or        |                                |
| subsequently. Other recipient costs |                                |
| during suspension or after          |                                |
| termination which are necessary and |                                |
| not reasonably avoidable are        |                                |
| allowable if (1) and (2) apply.     |                                |
|                                     |                                |
| \(1\) The costs result from         |                                |
| obligations which were properly     |                                |
| incurred by the recipient before    |                                |
| the effective date of suspension or |                                |
| termination, are not in             |                                |
| anticipation of it, and in the case |                                |
| of a termination, are               |                                |
| noncancellable.                     |                                |
|                                     |                                |
| \(2\) The costs would be allowable  |                                |
| if the award were not suspended or  |                                |
| expired normally at the end of the  |                                |
| funding period in which the         |                                |
| termination takes effect.           |                                |
|                                     |                                |
| \(d\) Relationship to debarment and |                                |
| suspension. The enforcement         |                                |
| remedies identified in this         |                                |
| section, including suspension and   |                                |
| termination, do not preclude a      |                                |
| recipient from being subject to     |                                |
| debarment and suspension under      |                                |
| E.O.s 12549 and 12689 and the       |                                |
| Federal awarding agency             |                                |
| implementing regulations (see       |                                |
| Section \_\_\_.13).                 |                                |
+-------------------------------------+--------------------------------+
| SUBPART D - After-the-Award         | **IV. AFTER‑THE‑AWARD          |
| Requirements                        | REQUIREMENTS**                 |
|                                     |                                |
| \_\_\_.70 Purpose. Sections         |                                |
| \_\_\_.71 through \_\_\_.73 contain |                                |
| closeout procedures and other       |                                |
| procedures for subsequent           |                                |
| disallowances and adjustments.      |                                |
+-------------------------------------+--------------------------------+
| \_\_\_.71 Closeout procedures.      | 71\. **Closeout procedures**.  |
|                                     | The rights and                 |
| \(a\) Recipients shall submit,      | responsibilities of the        |
| within 90 calendar days after the   | recipient and the Federal      |
| date of completion of the award,    | awarding agency are as stated  |
| all financial, performance, and     | in section \_\_\_.71 of OMB    |
| other reports as required by the    | Circular A‑110, with the       |
| terms and conditions of the award.  | following clarifications:      |
| The Federal awarding agency may     |                                |
| approve extensions when requested   | \(a\) The Federal awarding     |
| by the recipient.                   | agency shall make downward     |
|                                     | adjustments to the Federal     |
| \(b\) Unless the Federal awarding   | share of costs, as described   |
| agency authorizes an extension, a   | in paragraph (e) of            |
| recipient shall liquidate all       | section \_\_\_.71, if the      |
| obligations incurred under the      | amount expended by the         |
| award not later than 90 calendar    | recipient on project costs is  |
| days after the funding period or    | less than the amount stated in |
| the date of completion as specified | the award and any amendments   |
| in the terms and conditions of the  | thereto.                       |
| award or in agency implementing     |                                |
| instructions.                       |                                |
|                                     |                                |
| \(c\) The Federal awarding agency   |                                |
| shall make prompt payments to a     |                                |
| recipient for allowable             |                                |
| reimbursable costs under the award  |                                |
| being closed out.                   |                                |
|                                     |                                |
| \(d\) The recipient shall promptly  |                                |
| refund any balances of unobligated  |                                |
| cash that the Federal awarding      |                                |
| agency has advanced or paid and     |                                |
| that is not authorized to be        |                                |
| retained by the recipient for use   |                                |
| in other projects. OMB Circular     |                                |
| A-129 governs unreturned amounts    |                                |
| that become delinquent debts.       |                                |
|                                     |                                |
| \(e\) When authorized by the terms  |                                |
| and conditions of the award, the    |                                |
| Federal awarding agency shall make  |                                |
| a settlement for any upward or      |                                |
| downward adjustments to the Federal |                                |
| share of costs after closeout       |                                |
| reports are received.               |                                |
|                                     |                                |
| \(f\) The recipient shall account   |                                |
| for any real and personal property  |                                |
| acquired with Federal funds or      |                                |
| received from the Federal           |                                |
| Government in accordance with       |                                |
| Sections \_\_\_.31 through          |                                |
| \_\_\_.37.                          |                                |
|                                     |                                |
| \(g\) In the event a final audit    |                                |
| has not been performed prior to the |                                |
| closeout of an award, the Federal   |                                |
| awarding agency shall retain the    |                                |
| right to recover an appropriate     |                                |
| amount after fully considering the  |                                |
| recommendations on disallowed costs |                                |
| resulting from the final audit.     |                                |
+-------------------------------------+--------------------------------+
| \_\_\_.72 Subsequent adjustments    | 72\. **Subsequent adjustments  |
| and continuing responsibilities.    | and continuing                 |
|                                     | responsibilities**.            |
| \(a\) The closeout of an award does |                                |
| not affect any of the following.    | \(a\) The continuing rights of |
|                                     | the Federal awarding agency    |
| \(1\) The right of the Federal      | and responsibilities of the    |
| awarding agency to disallow costs   | recipient after closeout of    |
| and recover funds on the basis of a | the award are as stated in     |
| later audit or other review.        | paragraph (a) of               |
|                                     | section \_\_\_.72 of OMB       |
| \(2\) The obligation of the         | Circular A‑110.                |
| recipient to return any funds due   |                                |
| as a result of later refunds,       | \(b\) After closeout of the    |
| corrections, or other transactions. | award, the recipient and the   |
|                                     | Federal awarding agency may    |
| \(3\) Audit requirements in Section | modify or end those continuing |
| \_\_\_.26.                          | rights and responsibilities by |
|                                     | mutual agreement, as described |
| \(4\) Property management           | in paragraph (b) of            |
| requirements in Sections \_\_\_.31  | section \_\_\_.72, provided    |
| through \_\_\_.37.                  | that the responsibilities of   |
|                                     | the recipient referred to in   |
| \(5\) Records retention as required | paragraph (a) of section       |
| in Section \_\_\_.53.               | \_\_\_.72 are considered and   |
|                                     | provisions made for continuing |
| \(b\) After closeout of an award, a | responsibilities of the        |
| relationship created under an award | recipient, as appropriate.     |
| may be modified or ended in whole   |                                |
| or in part with the consent of the  |                                |
| Federal awarding agency and the     |                                |
| recipient, provided the             |                                |
| responsibilities of the recipient   |                                |
| referred to in paragraph            |                                |
| \_\_\_.73(a), including those for   |                                |
| property management as applicable,  |                                |
| are considered and provisions made  |                                |
| for continuing responsibilities of  |                                |
| the recipient, as appropriate.      |                                |
+-------------------------------------+--------------------------------+
| \_\_\_.73 Collection of amounts     | 73\. **Collection of amounts   |
| due.                                | due**. The Federal awarding    |
|                                     | agency's rights and            |
| \(a\) Any funds paid to a recipient | responsibilities for debt      |
| in excess of the amount to which    | collection are as stated in    |
| the recipient is finally determined | section \_\_\_.73 of OMB       |
| to be entitled under the terms and  | Circular A‑110.                |
| conditions of the award constitute  |                                |
| a debt to the Federal Government.   |                                |
| If not paid within a reasonable     |                                |
| period after the demand for         |                                |
| payment, the Federal awarding       |                                |
| agency may reduce the debt by (1),  |                                |
| (2) or (3).                         |                                |
|                                     |                                |
| \(1\) Making an administrative      |                                |
| offset against other requests for   |                                |
| reimbursements.                     |                                |
|                                     |                                |
| \(2\) Withholding advance payments  |                                |
| otherwise due to the recipient.     |                                |
|                                     |                                |
| \(3\) Taking other action permitted |                                |
| by statute.                         |                                |
|                                     |                                |
| \(b\) Except as otherwise provided  |                                |
| by law, the Federal awarding agency |                                |
| shall charge interest on an overdue |                                |
| debt in accordance with 4 CFR       |                                |
| Chapter II, \"Federal Claims        |                                |
| Collection Standards.\"             |                                |
+-------------------------------------+--------------------------------+
| Appendix A                          | # Appendix A                   |
|                                     |                                |
| Contract Provisions                 | **Contract Provisions**        |
|                                     |                                |
| All contracts, awarded by a         | All contracts awarded by a     |
| recipient including small           | recipient, including those for |
| purchases, shall contain the        | amounts less than the          |
| following provisions as applicable: | simplified acquisition         |
|                                     | threshold, shall contain the   |
| 1\. Equal Employment Opportunity -  | provisions described in        |
| All contracts shall contain a       | paragraphs 1 through 8 in      |
| provision requiring compliance with | Appendix A of OMB Circular     |
| E.O. 11246, \"Equal Employment      | A-110, as applicable, with the |
| Opportunity,\" as amended by E.O.   | following clarifications:      |
| 11375, \"Amending Executive Order   |                                |
| 11246 Relating to Equal Employment  | A.1. Equal Employment          |
| Opportunity,\" and as supplemented  | Opportunity. The reference to  |
| by regulations at 41 CFR part 60,   | "40 CFR part 60" in paragraph  |
| \"Office of Federal Contract        | 1 of the Appendix in OMB       |
| Compliance Programs, Equal          | Circular A-110 is replaced by  |
| Employment Opportunity, Department  | "40 CFR chapter 60." The text  |
| of Labor.\"                         | of Executive Order 11246 may   |
|                                     | be found at 3 CFR, 1964-1965   |
| 2\. Copeland \"Anti-Kickback\" Act  | Comp., p.339, and that of      |
| (18 U.S.C. 874 and 40 U.S.C.        | Executive Order 11375 may be   |
| 276c) - All contracts and subgrants | found at 3 CFR, 1966‑1970      |
| in excess of \$2000 for             | Comp., p. 684.                 |
| construction or repair awarded by   |                                |
| recipients and subrecipients shall  | A.2. Contract Work Hours and   |
| include a provision for compliance  | Safety Standards Act (40       |
| with the Copeland \"Anti-Kickback\" | U.S.C. 327-333). In paragraph  |
| Act (18 U.S.C. 874), as             | 4 of the Appendix in OMB       |
| supplemented by Department of Labor | Circular A-110, the words "all |
| regulations (29 CFR part 3,         | contracts awarded by           |
| \"Contractors and Subcontractors on | recipients in excess of \$2000 |
| Public Building or Public Work      | for construction contracts and |
| Financed in Whole or in Part by     | in excess of \$2500 for other  |
| Loans or Grants from the United     | contracts that involve the     |
| States\"). The Act provides that    | employment of mechanics or     |
| each contractor or subrecipient     | laborers" are replaced by "all |
| shall be prohibited from inducing,  | contracts awarded by           |
| by any means, any person employed   | recipients in excess of        |
| in the construction, completion, or | \$100,000 for construction or  |
| repair of public work, to give up   | other purposes that involve    |
| any part of the compensation to     | the employment of mechanics or |
| which he is otherwise entitled. The | laborers."                     |
| recipient shall report all          |                                |
| suspected or reported violations to | A.3. Debarment and Suspension  |
| the Federal awarding agency.        | (E.O.s 12549 and 12689).       |
|                                     | Paragraph 8 of the Appendix in |
| 3\. Davis-Bacon Act, as amended (40 | OMB Circular A-110 applies to  |
| U.S.C. 276a to a-7) - When required | contract awards that exceed    |
| by Federal program legislation, all | the simplified acquisition     |
| construction contracts awarded by   | threshold and certain other    |
| the recipients and subrecipients of | contract awards described in   |
| more than \$2000 shall include a    | the Federal awarding agency's  |
| provision for compliance with the   | codification of the            |
| Davis-Bacon Act (40 U.S.C. 276a to  | Governmentwide rule            |
| a-7) and as supplemented by         | implementing Executive Order   |
| Department of Labor regulations (29 | 12549 (3 CFR, 1986 Comp.,      |
| CFR part 5, \"Labor Standards       | p. 189) and Executive Order    |
| Provisions Applicable to Contracts  | 12689 (3 CFR, 1989 Comp., p.   |
| Governing Federally Financed and    | 235). The reference to the     |
| Assisted Construction\"). Under     | "small purchase threshold" in  |
| this Act, contractors shall be      | the final sentence of          |
| required to pay wages to laborers   | paragraph 8 is replaced by     |
| and mechanics at a rate not less    | "simplified acquisition        |
| than the minimum wages specified in | threshold" (currently          |
| a wage determination made by the    | \$100,000).                    |
| Secretary of Labor. In addition,    |                                |
| contractors shall be required to    |                                |
| pay wages not less than once a      |                                |
| week. The recipient shall place a   |                                |
| copy of the current prevailing wage |                                |
| determination issued by the         |                                |
| Department of Labor in each         |                                |
| solicitation and the award of a     |                                |
| contract shall be conditioned upon  |                                |
| the acceptance of the wage          |                                |
| determination. The recipient shall  |                                |
| report all suspected or reported    |                                |
| violations to the Federal awarding  |                                |
| agency.                             |                                |
|                                     |                                |
| 4\. Contract Work Hours and Safety  |                                |
| Standards Act (40 U.S.C. 327-333) - |                                |
| Where applicable, all contracts     |                                |
| awarded by recipients in excess of  |                                |
| \$2000 for construction contracts   |                                |
| and in excess of \$2500 for other   |                                |
| contracts that involve the          |                                |
| employment of mechanics or laborers |                                |
| shall include a provision for       |                                |
| compliance with Sections 102 and    |                                |
| 107 of the Contract Work Hours and  |                                |
| Safety Standards Act (40 U.S.C.     |                                |
| 327-333), as supplemented by        |                                |
| Department of Labor regulations (29 |                                |
| CFR part 5). Under Section 102 of   |                                |
| the Act, each contractor shall be   |                                |
| required to compute the wages of    |                                |
| every mechanic and laborer on the   |                                |
| basis of a standard work week of 40 |                                |
| hours. Work in excess of the        |                                |
| standard work week is permissible   |                                |
| provided that the worker is         |                                |
| compensated at a rate of not less   |                                |
| than 1 ½ times the basic rate of    |                                |
| pay for all hours worked in excess  |                                |
| of 40 hours in the work week.       |                                |
| Section 107 of the Act is           |                                |
| applicable to construction work and |                                |
| provides that no laborer or         |                                |
| mechanic shall be required to work  |                                |
| in surroundings or under working    |                                |
| conditions which are unsanitary,    |                                |
| hazardous or dangerous. These       |                                |
| requirements do not apply to the    |                                |
| purchases of supplies or materials  |                                |
| or articles ordinarily available on |                                |
| the open market, or contracts for   |                                |
| transportation or transmission of   |                                |
| intelligence.                       |                                |
|                                     |                                |
| 5\. Rights to Inventions Made Under |                                |
| a Contract or Agreement - Contracts |                                |
| or agreements for the performance   |                                |
| of experimental, developmental, or  |                                |
| research work shall provide for the |                                |
| rights of the Federal Government    |                                |
| and the recipient in any resulting  |                                |
| invention in accordance with 37 CFR |                                |
| part 401, \"Rights to Inventions    |                                |
| Made by Nonprofit Organizations and |                                |
| Small Business Firms Under          |                                |
| Government Grants, Contracts and    |                                |
| Cooperative Agreements,\" and any   |                                |
| implementing regulations issued by  |                                |
| the awarding agency.                |                                |
|                                     |                                |
| 6\. Clean Air Act (42 U.S.C. 7401   |                                |
| et seq.) and the Federal Water      |                                |
| Pollution Control Act (33 U.S.C.    |                                |
| 1251 et seq.), as amended -         |                                |
| Contracts and subgrants of amounts  |                                |
| in excess of \$100,000 shall        |                                |
| contain a provision that requires   |                                |
| the recipient to agree to comply    |                                |
| with all applicable standards,      |                                |
| orders or regulations issued        |                                |
| pursuant to the Clean Air Act (42   |                                |
| U.S.C. 7401 et seq.) and the        |                                |
| Federal Water Pollution Control Act |                                |
| as amended (33 U.S.C. 1251 et       |                                |
| seq.). Violations shall be reported |                                |
| to the Federal awarding agency and  |                                |
| the Regional Office of the          |                                |
| Environmental Protection Agency     |                                |
| (EPA).                              |                                |
|                                     |                                |
| 7\. Byrd Anti-Lobbying Amendment    |                                |
| (31 U.S.C. 1352) - Contractors who  |                                |
| apply or bid for an award of        |                                |
| \$100,000 or more shall file the    |                                |
| required certification. Each tier   |                                |
| certifies to the tier above that it |                                |
| will not and has not used Federal   |                                |
| appropriated funds to pay any       |                                |
| person or organization for          |                                |
| influencing or attempting to        |                                |
| influence an officer or employee of |                                |
| any agency, a member of Congress,   |                                |
| officer or employee of Congress, or |                                |
| an employee of a member of Congress |                                |
| in connection with obtaining any    |                                |
| Federal contract, grant or any      |                                |
| other award covered by 31 U.S.C.    |                                |
| 1352. Each tier shall also disclose |                                |
| any lobbying with non-Federal funds |                                |
| that takes place in connection with |                                |
| obtaining any Federal award. Such   |                                |
| disclosures are forwarded from tier |                                |
| to tier up to the recipient.        |                                |
|                                     |                                |
| 8\. Debarment and Suspension (E.O.s |                                |
| 12549 and 12689) - No contract      |                                |
| shall be made to parties listed on  |                                |
| the General Services                |                                |
| Administration\'s List of Parties   |                                |
| Excluded from Federal Procurement   |                                |
| or Nonprocurement Programs in       |                                |
| accordance with E.O.s 12549 and     |                                |
| 12689, \"Debarment and              |                                |
| Suspension.\" This list contains    |                                |
| the names of parties debarred,      |                                |
| suspended, or otherwise excluded by |                                |
| agencies, and contractors declared  |                                |
| ineligible under statutory or       |                                |
| regulatory authority other than     |                                |
| E.O. 12549. Contractors with awards |                                |
| that exceed the small purchase      |                                |
| threshold shall provide the         |                                |
| required certification regarding    |                                |
| its exclusion status and that of    |                                |
| its principal employees.            |                                |
+-------------------------------------+--------------------------------+