PART 6

OTHER ADMINISTRATION ACTIVITIES

6.1 FAO MONITORING RESPONSIBILITIES
[1](#fao-monitoring-responsibilities)

6.2 BUDGET CHANGES [1](#budget-changes)

6.3 AUDIT REQUIREMENTS [1](#audit-requirements)

6.4 NONCOMPLIANCE [2](#__RefHeading___Toc81118802)

6.5 SUSPENSION AND TERMINATION [2](#suspension-and-termination)

6.5.1 Suspension [2](#suspension)

6.5.2 Notification Requirements [3](#notification-requirements)

6.5.3 Termination by Mutual Agreement [3](#__RefHeading___Toc81118806)

6.6 DISPUTES AND APPEALS [4](#disputes-and-appeals)

# 6.1 FAO MONITORING RESPONSIBILITIES

**POLICY:** The FAO is responsible for monitoring the award. This
monitoring is generally done through the PTR.

**PROCEDURE*:*** In addition to the PTR's monitoring activities, the FAO
may also review project reports to determine whether the recipient's
actions are consistent with the award, or whether remedial measures are
necessary. Such measures may include revision or termination of the
award, requesting refund of excess funds, collecting interest and
modifying payment type.

# 6.2 BUDGET CHANGES

**POLICY:** The FAO shall review requests for budget revisions that
exceed 10% or increase project funding.

**PROCEDURE:** A recipient's request for a budget revision shall contain
current and proposed expenditures and an explanation for the need and
impact of the proposed revisions. Upon receipt, the FAO shall promptly
provide the PTR with a copy of the request. The FAO and the PTR should
review the proposal and determine whether or not to approve it. The FAO
shall notify the recipient within 30 days after the date of receipt of
the request as to whether the proposed budget revision is approved or
disapproved.

# 6.3 AUDIT REQUIREMENTS

**POLICY:** BPA may audit, or cause to be audited by the responsible
agency, awards or subawards to individuals or for-profit organizations
whenever, and in whatever degree, deemed necessary. Although BPA must
rely on the audits arranged by the recipient to the maximum extent
practical, other audits may be conducted by BPA if circumstances
warrant. The FAO is responsible for determining if an additional audit
is necessary, and for requesting it.

**INFORMATION:** An audit is used by BPA to evaluate whether financial
resources are being used as directed by the award. Recipients are
responsible for arranging audits of their own activities, at least once
every two years. OMB Circular A-133, Audits of States, Local Governments
and Non-Profit Organizations, requires Federal agencies to rely on the
results of these audits to the extent possible. As part of the
government-wide audit process, OMB has established audit cognizance. In
most cases the FAO\'s will review audits conducted by Federal or
non-Federal auditors outside BPA, and cognizant agencies will be
responsible for audit resolution, consulting with BPA as necessary.

[]{#__RefHeading___Toc81118802 .anchor}6.4 NONCOMPLIANCE

**PROCEDURE:**

\(a\) When the FAO determines that a recipient has not complied with any
term or condition of the award, the FAO shall first attempt to resolve
the issue informally. If that is unsuccessful, the FAO should send the
recipient a notice that sets forth\--

\(1\) The basis for the determination of noncompliance;

\(2\) The corrective actions required and the date by which they must be
taken; and

> \(3\) The actions BPA may take if the recipient does not comply within
> the time specified in the notice.

\(b\) If the recipient does not satisfactorily comply with the
requirements imposed by the FAO under paragraph (a), the FAO should
suspend or terminate the award.

# 6.5 SUSPENSION AND TERMINATION

**POLICY:** BPA may suspend or terminate an award based on noncompliance
with the terms or conditions of the award. All suspension and
termination decisions and actions are made by the FAO.

**DEFINITIONS:**

\(a\) "Suspension" means a temporary suspension of financial assistance
to the recipient pending corrective action by the recipient or pending a
decision to terminate the agreement. During a suspension no new funds
will be made available to the recipient and project, and authority to
commit funds identified in the budget is temporarily withdrawn.

\(b\) "Termination" means a permanent withdrawal of the recipient\'s
authority to spend previously awarded funds.

## 6.5.1 Suspension

**PROCEDURE:**

\(a\) Unless the FAO and the recipient agree otherwise, a period of
suspension generally should not exceed 90 days.

\(b\) The FAO may cancel the suspension at any time, up to and including
the date of expiration of the period of suspension if the recipient
takes satisfactory corrective action.

\(c\) If the suspension expires without further FAO action, the
recipient may resume the suspended activities or project.

\(d\) As of the effective date of the suspension, BPA shall withhold
further payments and shall not allow the recipient to new obligations
during the period of suspension unless such costs are authorized in the
notice of suspension or in a subsequent letter.

\(e\) The FAO may consult with Legal Counsel and Risk Management
regarding potential legal and financial risks resulting from suspension
or termination of the financial assistance award.

## 6.5.2 Notification Requirements

**PROCEDURE:** The FAO will provide a written notice at least 10 days
before the effective date of a suspension or termination of an award. A
copy of the notice to suspend or terminate will be sent to Disbursement
Operations to stop payments. Such notice shall include, as
appropriate\--

\(a\) The basis for the suspension or termination;

\(b\) The effective date of the BPA action;

\(c\) A description of the activities affected by the action;

\(d\) Instructions concerning which costs, if any, that shall be
allowable during the period of suspension, or instructions concerning
allowable termination costs;

> \(1\) Generally, the recipient shall incur no new obligations after
> the effective date of the termination of an award, or portion thereof.

\(2\) The recipient shall cancel as many outstanding obligations as
possible.

> \(3\) BPA shall allow full credit to the recipient for the BPA share
> of obligations properly incurred by the recipient but which cannot be
> canceled after the effective date of the termination.

\(e\) Instructions concerning required final reports and other closeout
actions for terminated awards;

\(f\) A statement of the recipient\'s limited right to appeal a
termination for cause to the Head of Contracting Activity; and

\(g\) The signature of the FAO and the date signed.

[]{#__RefHeading___Toc81118806 .anchor}6.5.3 Termination by Mutual
Agreement

**INFORMATION:** Either BPA or the recipient may initiate termination of
an award (or portion thereof) by mutual agreement. Voluntary termination
by mutual agreement may be desirable because the recipient has lost a
principal investigator, events or circumstances did not occur as
expected, or the work is not producing a successful project.

# 6.6 DISPUTES AND APPEALS

**POLICY:** BPA will attempt to informally resolve any dispute over the
award or administration of a financial assistance award. The FAO shall
issue a written determination concerning any dispute which is not
resolved informally.

**PROCEDURE:** FAO determinations shall contain a summary of the
dispute, the reasons for the determination, and information on the right
to appeal the dispute to the BPA HCA. The HCA is responsible for final
resolution of the dispute.