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**[DEPARTMENT OF HEALTH AND HUMAN SERVICES (DHHS)]{.underline}**

**[ADMINISTRATION FOR CHILDREN AND FAMILIES (ACF)]{.underline}**

***[STANDARD TERMS AND CONDITIONS \-- DISCRETIONARY
GRANTS]{.underline}***

The attached Financial Assistance Award is subject to Federal
legislation and to DHHS and ACF regulations and policies. These include
the following:

1\. For institutions of higher education, hospitals, other non-profit
organizations, and commercial (for-profit) organizations, Title 45 of
the Code of Federal Regulations (45 CFR) Part 74, *\"Uniform
Administrative Requirements for Awards and Subawards to Institutes of
Higher Education, Hospitals, Other Non-Profit Organizations; and
Commercial Organizations; and Certain Grants and Agreements with States,
Local Governments and Indian Tribal Governments*.\"
\[[http://www.hhs.gov/progorg/grantsnet/adminis/cfr45.html\]]{.underline}

2\. For States, local governments and Federally recognized Indian
Tribes, 45 CFR Part 92, \"*Uniform Administrative Requirements for
Grants and Cooperative Agreements to State and Local Governments*.\"
\[[http://www.hhs.gov/progorg/grantsnet/adminis/cfr45.html]{.underline}\]

3.  Other DHHS regulations codified in Title 45 of the Code of Federal
    Regulations
    \[[http://www.hhs.gov/progorg/grantsnet/adminis/cfr45.html]{.underline}\]:

Part 16 - Procedures of the Departmental Grant Appeals Board

Part 30 - Claims Collection

Part 46 - Protection of Human Subjects

Part 76 - Governmentwide Debarment and Suspension (Non-Procurement) and
Governmentwide Requirements for Drug-Free Workplace (Grants)

Part 80 - Nondiscrimination Under Programs Receiving Federal Assistance
through the DHHS Effectuation of Title VI of the Civil Rights Act of
1964

Part 81 - Practice and Procedure for Hearings Under Part 80 of This
Title

Part 84 - Nondiscrimination on the Basis of Handicap in Programs and
Activities Receiving Federal Financial Assistance

Part 86 - Nondiscrimination on the Basis of Sex in Education Programs
and Activities Receiving or Benefiting From Federal Financial Assistance

Part 91 - Nondiscrimination on the Basis of Age in HHS Programs or
Activities Receiving Federal Financial Assistance

Part 93 - New Restrictions on Lobbying

Part 100 - Intergovernmental Review of DHHS Programs and Activities

[For Head Start Programs]{.underline}
\[[http://www.acf.dhhs.gov/programs/hsb/html/regulations.html]{.underline}\]

Part 1301 - Head Start Grants Administration

Part 1302 - Policies and Procedures for Selection, Initial Funding, and
Refunding of Head Start Grantees, and for Selection of Replacement
Grantees

Part 1303 - Appeal Procedures for Head Start Grantees and Current or
Prospective Delegate Agencies

Part 1304 - Program Performance Standards for the Operation of Head
Start Programs by Grantee and Delegate Agencies

Part 1305 - Eligibility, Recruitment, Selection, Enrollment and
Attendance in Head Start

Part 1306 - Head Start Staffing Requirements and Program Operations

Part 1308 - Head Start Program Performance Standards on Services for
Children with Disabilities

> Part 1309 - Head Start Facilities Purchase
>
> [For Runaway and Homeless Youth Programs]{.underline}

Part 1351 - Runaway and Homeless Youth Program

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4.  37 CFR Part 401 - Rights to Inventions Made by Nonprofit
    Organizations and Small Business Firms Under Government Grants,
    Contracts, and Cooperative Agreements.
    \[[http://www.access.gpo.gov/nara/cfr/waisidx/37cfr401.html]{.underline}\]

> 5\. The recipient organization must carry out the project according to
> the application as approved by the Administration for Children and
> Families (ACF), including the proposed work program and any
> amendments, all of which are incorporated by reference in these terms
> and conditions.

6\. If this is a multi-year project and it is not the final budget
period, the grantee is advised that future awards for continuation of
this project will be dependent upon the availability of Federal funds,
satisfactory progress by the grantee, and ACF\'s determination that
continued funding is in the best interest of the Federal government.

7\. Grantees shall liquidate all obligations incurred under the award
not later than 90 days after the end of the project period. The only
exceptions to this rule are the basic Head Start grants with an
indefinite project period. For these grants, liquidation of obligations
should occur not later than 90 days after each budget period. In either
case, an unobligated balance from a prior budget period does not
authorize a grantee to obligate funds in excess of the total federally
approved budget reflected on the FAA for the current budget period. Head
Start grantees must use the Financial Status Report (SF269) to report
expenditures for the program. The report is due on a semi-annual basis.
Each SF269 report is due within 30 days after the end of the reporting
period. A final SF269 report for Head Start grants is due in the
regional office not later than 90 days after the end of the budget
period for the grant. That report must be marked as a final report, and
must show no unliquidated obligations remaining for the grant. The
remarks box in that report must indicate any other federal funds
received for the program, the amount of administration and program
development costs (federal and nonfederal) incurred for the program and
(for grants that administer both a Head Start and Early Head Start
program under the same grant number) the amount of any unobligated
balance of federal funds for CANs G024122 and G024125 that is included
in the total unobligated balance of federal funds on line 10p of the
report.

8\. The DHHS Inspector General maintains a toll free number,
**800-HHS-TIPS** (800-447-8477), for receiving information concerning
fraud, waste or abuse under grants and cooperative agreements. Such
reports are kept confidential, and callers may decline to give their
names if they choose to remain anonymous.
\[[http://www.dhhs.gov/progorg/oei/hotline/hhshot.html]{.underline}\]

9\. The grantee will take all necessary affirmative steps to ensure that
small, minority and woman-owned business firms are utilized when
possible as sources of supplies, services, equipment and construction.
To the extent practicable, all equipment and products purchased with
funds made available through this award should be American-made.

10. Failure to submit reports (i.e., financial, progress, or other
    required reports) on time may be the basis for withholding financial
    assistance payments, suspension, termination or denial of refunding.
    A history of such unsatisfactory performance may result in
    designation of \"high risk\" status for the recipient organization
    and may jeopardize potential future funding from DHHS.

11. Under Section 508 of Public Law 103-333, the following condition is
    applicable to all Federal awards:

> \"When issuing statements, press releases, requests for proposals, bid
> solicitations and other documents describing projects or programs
> funded in whole or in part with Federal money, all grantees receiving
> Federal funds, including but not limited to State and local
> governments and recipients of Federal research grants shall clearly
> state (1) the percentage of the total costs of the program or
>
> project which will be financed with Federal money, (2) the dollar
> amount of Federal funds for the project
>
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>
> or program, and (3) the percentage and dollar amount of total costs of
> the project or program that will be refinanced by nongovernmental
> sources.\"

12\. Public Law 103-227, Part C - Environmental Tobacco Smoke, also
known as the Pro-Children\'s Act of 1994 requires that smoking not be
permitted in any portion of any indoor facility owned or leased or
contracted for by an entity and used routinely or regularly for the
provision of health, day care, education, or library services to
children under the age of 18, if the services are funded by Federal
programs either directly or through State or local governments, by
Federal grant, contract, loan, or loan guarantee. The law does not apply
to children\'s services provided in private residences, facilities
funded solely by Medicare or Medicaid funds, and portions of facilities
used for inpatient drug or alcohol treatment.
\[[http://www.ed.gov/legislation/GOALS2000/TheAct/sec1043.html]{.underline}\]

13\. For purposes of this award each item of equipment with an
acquisition cost of less than \$5,000 is included under supplies, is
allowable as a direct cost of this project, and does not require prior
approval of the Grants Officer. Conversely, an item of equipment with an
acquisition cost of \$5,000 or more is NOT considered an allowable
project cost without prior written approval of the Grants Officer.

14\. The Grantee shall comply with all provisions of OMB Circular A-133
(revised June 24, 1997), \"*Audits of States, Local Governments and
Non-Profit Organizations.\"*
\[[http://www.whitehouse.gov/WH/EOP/OMB/html/circulars/a133/a133.html]{.underline}\]
Grantees that expend a total of \$300,000 or more in federal funds are
required to submit an annual audit within nine months after the end of
the audit period. The Reporting Package should include: 1) SF-SAC-Data
Collection Form for Reporting on Audits of States, Local Governments and
Non-Profit Organizations
\[[http://harvester.census.gov/sac/dissem/simpleqry.html]{.underline}\];
2) Summary of prior audit findings; 3) Auditors reports; and 4)
Corrective action plans. Copies of this Reporting Package are to be sent
to: Single Audit Clearinghouse, Bureau of the Census, 1201 E. 10^th^
Street, Jeffersonville, Indiana 47132. The Grantee is requested to send
a courtesy copy of the Reporting Package with a copy of any management
letters issued by the auditor to: ACF Grants Officer, Administration for
Children and Families, 26 Federal Plaza, Room 4114, New York, N.Y.
10278.

15. Grantees shall comply with the particular set of federal cost
    principles that applies in determining allowable costs. Allowability
    of costs shall be determined in accordance with the cost principles
    applicable to the entity incurring the costs:

The allowability of costs incurred by State, local or
federally-recognized Indian tribal governments is determined in
accordance with the provisions of OMB Circular A-87, \"*Cost Principles
for State and Local Governments.*\"
\[[http://www.whitehouse.gov/WH/EOP/OMB/html/circulars/a087/a087-all.html]{.underline}\]

The allowability of costs incurred by nonprofit organizations (except
for those listed in Attachment C of Circular A-122) is determined in
accordance with the provisions of OMB Circular A-122, \"*Cost Principles
for Nonprofit Organizations*\" and paragraph (b) of 45 CFR §74.27.
\[[http://www.whitehouse.gov/WH/EOP/OMB/html/circulars/a122/a122.html]{.underline}\]

The allowability of costs incurred by institutions of higher education
is determined in accordance with the provisions of OMB Circular A-21,
\"*Cost Principles for Educational Institutions*:
\[[http://www.whitehouse.gov/WH/EOP/OMB/html/circulars/a021/a021.html]{.underline}\]

The allowability of costs incurred by hospitals is determined in
accordance with the provisions of Appendix E of 45 CFR Part 74,
\"*Principles for Determining Costs Applicable to Research and
Development Under Grants and Contracts with Hospitals*.\"

The allowability of costs incurred by commercial organizations and those
non-profit organizations listed in Attachment C to Circular A-122 is
determined in accordance with the provisions of the federal Acquisition
Regulation (FAR) at 48 CFR Part 31, except that independent research and
development costs are unallowable.

**(REVISED 02/2002)**