**Appendix I**

**Federal Programs Excluded from the A-102 Common Rule**

Note: §\_\_\_ references are to the "Uniform Administrative Requirements
for Grants and Cooperative Agreements to State and Local Governments"
(A-102 Common Rule).

**Background**

Certain grant programs (block grant programs enacted under the Omnibus
Budget Reconciliation Act of 1981, one special program, open-ended
entitlement programs, and other specified programs) were originally
exempted from the provisions of the A-102 Common Rule. On September 8,
2003 (68 FR 52843-52844), the Department of Health and Human Services
(HHS) amended its implementation of the A-102 Common Rule at 45 CFR part
92 to eliminate the exemption for all of its programs other than the HHS
block grants under the Omnibus Budget Reconciliation Act of 1981. The
Department of Agriculture previously included its entitlement grants in
its implementation of the A-102 Common Rule. The programs that remain
exempt from the A-102 Common Rule are listed below. Consult Part 4 -
Agency Program Requirements, II. Program Procedures - Source of
Governing Requirements for the governing requirements for these
programs.

The listed block grant programs and Impact Aid (CFDA 84.041) (excluding
payments for children with disabilities and payments for construction)
are also exempt from the provisions of the OMB cost principles
circulars. State cost principles requirements apply to these programs
(including their subrecipients). The entitlement programs and the other
programs are subject to the provisions of the OMB cost principles
circulars. The HHS September 8, 2003 rulemaking did not affect the
applicability of the cost principles for the HHS entitlement programs.

Note that, in some cases, the administrative requirements for
entitlement programs in Federal agency regulations are not identical to
those in the A-102 Common Rule. Rather than identify for testing each
instance where the requirements differ, this Compliance Supplement only
addresses differences that warrant special attention. One difference is
in the area of procurement. With respect to all other administrative
requirements, the auditor should be guided by the provisions of the
A-102 Common Rule and agency program requirements (see Part 4).

*Differences pertaining to procurement*

Subpart F of 45 CFR part 95, ADP equipment and services, applies to
certain HHS programs as specified in Part 4 of this Supplement. Subpart
F requires prior Federal written approval for the acquisition of ADP
equipment and services of \$5 million or more when the Federal
Government funds at regular matching rates and prior written approval
for all ADP acquisitions when the Federal Government funds at enhanced
matching rates. In addition, the rules require prior Federal written
approval for sole-source contracts between \$1 million and \$5 million
when the Federal Government funds at regular matching rates and for
certain requests for proposals (RFPs), contracts, and amendments.

**Programs Excluded from the Requirements of the A-102 Common Rule**

Since many of the programs excluded from the A-102 Common Rule were
reauthorized or amended, the following list provides the CFDA number and
name as listed in the current CFDA. A notation is included with the
program name to indicate when only part of the awards under a CFDA
number are excluded from the A-102 Common Rule or to provide other
clarifications.

§\_\_\_.4(a)(2) Block grant programs authorized by:

*The Omnibus Budget Reconciliation Act of 1981* (§\_\_\_.4(a)(2))

93.569 Community Services Block Grant

93.991 Preventive Health and Health Services Block Grant

93.958 Block Grants for Community Mental Health Services

93.959 Block Grants for Prevention and Treatment of Substance Abuse

93.994 Maternal and Child Health Services Block Grant to the States

93.667 Social Services Block Grant

93.568 Low-Income Home Energy Assistance

14.228 Community Development Block Grants/State's Program
(State-administered small cities program)

*Other programs*

§\_\_\_.4(a)(9) *Grants to local education agencies under the following
sections of the Impact Aid program (CFDA 84.041)*:

Section 8002; 20 USC 7702 (Federal property payments)

Section 8003(b); 20 USC 7703(b) (Basic support payments).

§\_\_\_.4(a)(10) *Payments under the Veterans Administration's State
Home Per Diem Program*:

64.014 Veterans State Domiciliary Care

64.015 Veterans State Nursing Home Care

64.016 Veterans State Hospital Care