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# PRE-AWARD COMPLIANCE FOR  NON-PROFIT ORGANIZATIONS

PRE-AWARD COMPLIANCE FOR  NON-PROFIT ORGANIZATIONS

EPA assistance awards  (grants and cooperative agreements) to non-profit organizations are an  important mechanism for delivering environmental protection to the public.  EPA's Office of the Inspector General, however, has issued numerous audit  reports documenting instances of non-profit recipients that have inadequate  administrative systems to manage EPA funds or lack the capability to  successfully perform the project scope of work. The Office of Grants and  Debarment has identified similar issues in conducting post award monitoring  activities. 

Recognizing that it is  preferable to address such issues before, rather than after, an assistance  agreement is awarded; EPA has begun evaluating the administrative and  programmatic capability of non-profit applicants. 

These procedures are based  on existing regulatory requirements. Specifically, 40 CFR � 30.14 authorizes  EPA to impose pre-award conditions on a non-profit applicant that has a history  of poor performance, is not financially stable, has a management system that  does not meet the standards prescribed in 40 CFR Part 30, has not conformed to  the terms and conditions of a previous award, or is not otherwise responsible.  Further, 40 CFR � 30.62 provides EPA with remedies to deal with non-profit  recipients that mismanage assistance agreements either administratively or  programmatically. Finally, under 2 CFR Part 180 and Part 1532, EPA may suspend  or debar non-profit applicants or recipients that pose a serious business risk  to the Government.

After receiving notification  from the Program Office that an application has been recommended for funding,  the Grants Management Office (GMO) must: require the applicant to fill out the  Administrative Capability Form contained in Appendix A to the EPA Order and  provide supporting documents; and then conduct a review of this information. If  the GMO, based upon a review of the completed Administrative Capability Form  and after checking the Grantee Compliance Database, determines that the  applicant lacks the necessary administrative capability, the award official  must impose pre-award conditions under section 10(b), or special award  conditions under Section 10(d), of the EPA Order. If the GMO finds that the  applicant has the necessary administrative capability, pre-award or special  award conditions are not required.

| Application      Kit for Federal Assistance | Letter      to Applicant | Applicable      EPA Regulations and Description | Grant    Application Forms | EEO Contacts | Checklist for Applications | Official Mailing    Addresses | On-Line Grant Application Kit |     | Appendix D: Fact sheet for Applicants Intergovernmental Review Process |     |     Returnto the Grants and Debarment Home Page |

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    - Application Kit for Federal Assistance
    - Letter to Applicant
    - Applicable EPA Regulations and Description
    - Appendix D: Fact sheet for Applicants Intergovernmental Review Process
    - Grant Application Forms
    - EEO Contacts
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http://www.epa.gov/ogd/AppKit/preaward.htm

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Last updated on Tuesday, January 19, 2010
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