OMB No. 0581-0240 

Agricultural Marketing Service (AMS) 

Grants Division 

General Terms and Conditions 

Effective Date: August 2017 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TABLE OF CONTENTS 

1.0 OVERVIEW OF GENERAL TERMS AND CONDITIONS................................................................................................................... 5 

1.1 Common Terms and Acronyms......................................................................................................................................................... 5 

1.2 Order of Precedence......................................................................................................................................................................... 5 

1.3 Definitions......................................................................................................................................................................................... 5 

2.0 FINANCIAL MANAGEMENT ............................................................................................................................................................ 6 

Audit Requirements .......................................................................................................................................................................... 7 

2.2 Cost-sharing or Matching Requirements .......................................................................................................................................... 7 

2.3 Cost-sharing Sources and Restrictions .............................................................................................................................................. 7 

3.0 SUBRECIPIENT MONITORING & MANAGEMENT ............................................................................................................................ 7 

3.1 Accountability to the Federal Award................................................................................................................................................. 8 

4.0 PAYMENTS .................................................................................................................................................................................... 8 

4.1 Types of Payments ............................................................................................................................................................................ 8 

4.2 How to Request Payments................................................................................................................................................................. 8 

4.3 Payment Source Documentation and Other Requirements ............................................................................................................. 8 

4.4 Timely Drawdown and Use of Grant Funds ....................................................................................................................................... 9 

5.0 INTEREST EARNED AND ADVANCES OF GRANTS FUNDS ................................................................................................................ 9 

6.0 PROGRAM INCOME ....................................................................................................................................................................... 9 

7.0 PROCUREMENTS.......................................................................................................................................................................... 10 

8.0 ALLOWABLE COST AND ACTIVITIES.............................................................................................................................................. 10 

8.1 Indirect Costs .................................................................................................................................................................................. 10 

8.2 Allowable and Unallowable Costs and Activities ............................................................................................................................ 11 

9.0 CHANGES REQUIRING PRIOR WRITTEN APPROVAL...................................................................................................................... 18 

9.1 Change in Key Personnel/Time Devoted to the Project.................................................................................................................. 19 

9.2 Change in Scope or Objectives........................................................................................................................................................ 19 

9.3 One-Time Extension ........................................................................................................................................................................ 19 

9.4 Budget Change................................................................................................................................................................................ 20 

9.5 Pre-Award Costs............................................................................................................................................................................. 20 

9.6 Contracting or Subawarding for Activities Central to the Award’s Purpose(s)................................................................................ 20 

9.7 Specific Allowable Costs Prior Approvals........................................................................................................................................ 21 

9.8 Changes to Recipient Name or Address.......................................................................................................................................... 21 

9.9 Cost-Share or Match – Changes in the Amount.............................................................................................................................. 21 

10.0 PERFORMANCE AND FINANCIAL REPORTS................................................................................................................................. 22 

10.1 Annual Performance and Financial Reports................................................................................................................................... 22 

10.2 Final Performance and Financial Reports....................................................................................................................................... 22 

10.3 Review of Performance and Financial Reports............................................................................................................................... 22 

10.4 Public Access to Performance Reports and Information on Report Content ................................................................................. 23 

10.5 Disparaging Language and Protected Personally Identifiable Information (PII)............................................................................. 23 

10.6 Overdue Reports............................................................................................................................................................................ 23 

11.0 ACKNOWLEDGEMENT OF SUPPORT........................................................................................................................................... 23 

12.0 PROPERTY MANAGEMENT ........................................................................................................................................................ 24 

12.1 Disposition of Equipment and Supplies ......................................................................................................................................... 24 

13.0 ADMINISTRATIVE AND NATIONAL POLICY REQUIREMENTS................................................................................................. 24 

14.0 CLOSEOUT ................................................................................................................................................................................. 26 

14.1 Closeout Checklist ......................................................................................................................................................................... 26 

14.2 Unused and Returned Funds ......................................................................................................................................................... 26 

15.0 RECORD RETENTION.................................................................................................................................................................. 27 

16.0 ACCESS TO RECORDS .............................................................................................................................................................. 27 

17.0 REMEDIES FOR NONCOMPLIANCE............................................................................................................................................. 27 

17.1 Disallow Costs ............................................................................................................................................................................... 27 

17.2 Withdrawal of Authorized Personnel Approval ............................................................................................................................ 27 

17.3 Withholding of Payments.............................................................................................................................................................. 27 

17.4 Withholding of Support................................................................................................................................................................. 27 

17.5 Suspension or Termination ........................................................................................................................................................... 27 

17.6 Special Conditions for High-Risk Recipients .................................................................................................................................... 28 

18.0 SITES VISITS ............................................................................................................................................................................... 28 

19.0 APPEALS .................................................................................................................................................................................... 28 

20.0 LIMIT OF FEDERAL LIABILITY ...................................................................................................................................................... 28 
21.0 FRAUD, WASTE, AND ABUSE ..................................................................................................................................................... 29 

22.0 PROHIBITION CONFIDENTIALITY AGREEMENTS ......................................................................................................................... 29 

23.0 PAPERWORK REDUCTION.......................................................................................................................................................... 29 
 

 

 

 

 

 

 

 

 

 

 

 

1.0 OVERVIEW OF GENERAL TERMS AND CONDITIONS 

General terms and conditions are determined by statutory, regulatory, and agency requirements, as well as the administrative 

policies of the grant program. Terms and conditions applies to all awards and dictate important requirements related to recipients 

grant, including payments, reporting frequency and content, and prior approval requests. Grant recipients work in partnership with 

the Agricultural Marketing Service (AMS) to ensure proper stewardship of Federal funds. Failure to comply may result in actions as 

described in section 16.0. Remedies for noncompliance. 

AMS is in the process of implementing a grants management system. Once the system is implemented, AMS will notify recipients of 

any changes that may affect the terms and conditions. 

The Grant Agreement Face Sheet (Form AMS-33) references these terms and conditions and provides a link to the AMS website that 

contains all related documents for the management of the award: https://www.ams.usda.gov/services/grants. 

1.1 Common Terms and Acronyms 

Term/Acronym Meaning 

ACH Automated Clearing House 

AMS Agricultural Marketing Service 

CFDA Catalog of Federal Domestic Assistance 

CFR Code of Federal Regulations 

DUNS Data Universal Numbering System 

EFT Electronic Fund Transfer 

FAIN Federal Award Identification Number; also known as the Grant Agreement Number 

GAAP Generally Accepted Accounting Principles 

GAGAS Generally Accepted Government Auditing Standards 

GSA General Services Administration 

FMLFPP Farmers Market and Local Food Promotion Program with two subprograms: the Farmers Market Promotion 

Program (FMPP) and the Local Food Promotion Program (LFPP) 

FSMIP Federal State Marketing Improvement Program 

OMB Office of Management and Budget 

PL Public Law 

PMS Department of Health and Human Services Payment Management System 

Protected PII Protected Personally Identifiable Information 

SAM System for Award Management (SAM.gov) 

SCBGP Specialty Crop Block Grant Program, including the Specialty Crop Multi-State Program 

SF Standard Form 

USC United States Code 

USDA United States Department of Agriculture 

1.2 Order of Precedence 

In the event of any inconsistency between provisions of the award, the inconsistency will be resolved by giving precedence in the 

following order: 

1. Applicable laws and statutes of the United States, including any specific legislative provisions mandated in the statutory 

authority for the award 

2. Code of Federal Regulations 

3. AMS general terms and conditions for grants agreements 

4. Agency policy 

5. Application documents 

1.3 Definitions 

As defined in 2 CFR § 200.86, Recipient means a non-Federal entity that receives a Federal award directly from a Federal awarding 

agency to carry out an activity under a Federal program. The term recipient does not include subrecipients (defined at 2 CFR § 

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200.93). As defined in 2 CFR § 200.101, the terms and conditions of the award flow down to subawards (defined at 2 CFR § 200.92) 

to subrecipients. 

As defined in 2 CFR § 200.69, non-Federal entity means a state, local government, Indian tribe, institution of higher education 

(IHE), or nonprofit organization that carries out the award as a recipient or subrecipient. These award terms are applicable to nonFederal entities. 

Federal award is defined in 2 CFR § 200.38 and the information included in a Federal award is identified in 2 CFR § 200.210. 

As defined in 2 CFR 200.77 , Period of Performance means the time during which the non-Federal entity may incur new obligations 

to carry out the work authorized under the Federal award. In addition, the term includes any extension of the end date of the award, 

such as a no-cost extension authorized by 2 CFR 200.308, paragraph (d)(2). The period of performance is identified in block 15 of the 

Grant Agreement Face Sheet (Form AMS-33) and will determine the effective commence date of the award. 

2.0 FINANCIAL MANAGEMENT 

Recipients are required to meet the standards and requirements for financial management systems set forth or referenced in 2 CFR § 

200.302. 

The adequacy of the recipient’s financial management system is integral to their ability to account for grant expenditures and track 

matching resources. The recipient must use Federal funds in a responsible manner and apply adequate internal controls and cash 

management practices consistent with the requirements outlined in 2 CFR § 200.303. 

Recipients must expend and account for funds under this award in accordance with their own State laws and procedures. Financial 

management systems and related records, of the awardees, and any other entity involved in the grant, must be sufficiently detailed 

in order to prepare reports, trace funds, and demonstrate that fund management complies with Federal statutes, regulations, and 

these general and other program-specific terms and conditions. 

The recipient’s financial management system must provide: 

1) Identification, in its accounts, of all Federal awards received and expended and the Federal programs under which they were 

received. This identification must include, as applicable: 

a. The CFDA title and number; 

b. The Grant Agreement Number/FAIN and Federal fiscal year awarded; 

c. The name of the Federal agency; and 

d. The name of the pass-through entity, if any. 

2) Accurate, current, and complete disclosure of the financial accounting of each Federal award or program. 

3) Records that adequately identify the source and application of funds for Federally-funded activities. These records must 

contain information pertaining to Federal awards, authorizations, obligations, unobligated balances, assets, expenditures, 

income, and interest. Accounting records must be supported by source documentation such as canceled checks, paid bills, 

payrolls, time and attendance records, contracts, and subaward documents. 

4) Effective control over, and accountability for, all funds, property, and other assets. Recipients must adequately safeguard all 

assets and assure that they are used solely for authorized purposes. 

5) Comparison of expenditures with budget amounts for each Federal award. 

6) Written procedures to implement the requirements of 2 CFR § 200.305 Payment, which minimize the time elapsing between 

the transfer of Federal funds to any non-Federal entity and the disbursement of the funds for direct program costs and the 

proportionate share of any allowable indirect or facilities and administrative costs. 

7) Written procedures for determining the allowability of costs in accordance with 2 CFR § 200 Subpart E—Cost Principles and 

the terms and conditions of this award. 

Recipients must notify the AMS representative when financial management problems are discovered. Deficiencies in the recipient’s 

financial management system, whether reported by the recipient or identified by AMS, may result in the imposition of special award 

conditions, such as a high risk designation or other requirements for increased monitoring. 

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Audit Requirements 

Recipients (other than Federal agencies and for-profit recipients) are responsible for obtaining audits in accordance with the 2 CFR § 

200 Subpart F – Audit Requirements. The standards require any non-Federal entity that expends $750,000 or more in Federal awards 

during their fiscal year to have a single or program-specific audit conducted for that year. 

The audit must meet the standards specified in GAGAS. Recipients must follow a systematic method to ensure timely and appropriate 

resolution of audit findings and recommendations, whether discovered because of a Federal audit or an audit initiated by the passthrough entity. 

If applicable, submit the most recent Single Audit to AMS 30 calendar days after completion of the audit. If a recipient does not submit 

its Single Audit, it must conduct a Program Specific Audit following GAGAS within 60 calendar days after the end date of your grant 

agreement. A link to the audit report or an electronic version of the audit report is acceptable. All auditees are also to submit their 

audit reports directly to the Federal Audit Clearinghouse (FAC). The SF-SAC and reporting package MUST be submitted electronically 

to FAC: http://harvester.census.gov/sac/. Any future updates to the location of the FAC may be found at the OMB website. 

2.2 Cost-sharing or Matching Requirements 

Definition: Cost-sharing or matching refers to the portion of project costs not paid by Federal funds. 

If the award has specific cost-sharing or matching requirements, the recipient must ensure that it complies with the applicable Federal 

administrative provisions found in 2 CFR § 200.306. Cost-sharing or matching in the form of cash and/or in-kind non-Federal resources 

must be directly related to the project’s objectives, and be properly documented. If the amount of the approved cost-share or match 

provided by the recipient or by a project partner or subrecipient changes, the recipient must request prior written approval from to 

AMS (see 9.9 Cost-share or Match-Changes in the Amount). 

Recipients must maintain documentation identifying: 

1) The specific costs or contributions that constitute the cost- sharing or matching; 

2) The funding source or contribution; and 

3) How the appropriate amount of the contribution was determined for reporting purposes. 

Recipients should refer to 2 CFR § 200.306 for guidance on allocating the cost-share or match; however, if they need further guidance, 

they should consult AMS about properly documenting the contribution. 

Recipients do not need to routinely provide documentation to AMS, but the documentation must be retained in the project files and 

made available upon request. Cost-sharing or matching must be reported on the Federal Financial Report (SF-425 -- Example) and 

the Request for Advance or Reimbursement (SF-270 - Example). 

2.3 Cost-sharing Sources and Restrictions 

If the award has specific cost-sharing or matching requirements, the recipient may use funds or other resources contributed by 

community organizations, as well as trade associations and other project participants to satisfy the cost-sharing or matching 

requirement upon providing the appropriate documentation. 

A recipient may also use unrecovered indirect costs as part of cost-sharing or matching. Unrecovered indirect cost means the 

difference between the amount charged to the Federal award and the amount that could have been charged to the Federal award 

under the potential recipient’s approved negotiated indirect cost rate. 

Recipients cannot use Federal funds or program income to meet cost-sharing or matching requirements. 

3.0 SUBRECIPIENT MONITORING & MANAGEMENT 

A subaward is an award provided by a pass-through entity (grant recipient) to a subrecipient to carry out part of a Federal program. 

It does not include payments to contractors or to an individuals that are beneficiaries of a Federal program. A subaward may be 

provided through any form of legal agreement, including an agreement that the pass-through entity considers a contract. 

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If the recipient uses subawards, they must enter into a formal written agreement with each subrecipient that addresses the 

arrangements for meeting the programmatic, administrative, financial, and reporting requirements of the grant, including those 

necessary to ensure compliance with all applicable Federal regulations and policies. Specifically, the recipient is responsible for 

including the requirements of the applicable AMS award terms and conditions in its subaward agreements as well as the provisions 

required under 2 CFR § 200.331 REQUIREMENTS FOR PASS-THROUGH ENTITIES. 

Please see Appendix A to 2 CFR § 170 – Award Term for additional reporting requirements concerning subawards. 

3.1 Accountability to the Federal Award 

Recipients are accountable to AMS for the performance of subawarded projects and the appropriate expenditure of Federal funds by 

all parties under this agreement. This includes maintaining the necessary documentation on all subawards and making it available to 

AMS upon request. Recipients must include subaward activities in all performance and financial reports. In general, the requirements 

that apply to the recipient of the award also apply to subrecipients. 

If a subrecipient fails to comply with the terms and conditions of this award, the recipient may impose special award conditions, 

including one or more of the corrective actions outlined in 2 CFR § 200.338 REMEDIES FOR NONCOMPLIANCE. 

4.0 PAYMENTS 

4.1 Types of Payments 

Advance – An advance payment is a payment that AMS or a pass-through entity makes before funds are disbursed for program 

purposes. Requests for advance payments must be limited to amounts needed to meet actual and immediate cash needs. 

Reimbursements – Reimbursements are transfers of Federal funds to recipients, after the recipient pays out funds for approved 

project activities. 

4.2 How to Request Payments 

SF-270 Request for Advance or Reimbursement 

Email a signed copy of the SF-270, Request for Advance or Reimbursement, to the appropriate AMS representative as indicated in the 

award letter. The authorized organizational representative must sign the SF-270. Instructions for completing the SF-270 can be found 

on the corresponding program website under the “How to Administer the Award” webpage. 

AMS Grant Program Worksheet 

The recipient will be notified if they are required to submit an AMS Grant Programs Worksheet in addition to the SF-270 on their 

AMS-33 Grant Agreement Award Face Sheet. The worksheet must be submitted at the same time as the SF-270. 

Receipt of Request by AMS 

AMS will confirm receipt of the payment request via email, review the request, and communicate with the recipient project 

coordinator (the individual indicated in block14 of the AMS-33 Grant Agreement Face Sheet) if there are questions or concerns. The 

recipient project coordinator will revise the request for payment to address the questions and concerns. 

Upon approval, AMS will make payments via EFT to the bank account specified by the recipient at SAM.gov. If the bank information 

is incorrect or changes at anytime during the grant period, it is the recipient’s responsibility to update their SAM.gov information 

and notify AMS as soon as possible to ensure proper and timely deposit of funds. 

4.3 Payment Source Documentation and Other Requirements 

Recipients must collect and maintain source documentation so it is available upon AMS request at any time during the performance 

period. At any point during the grant period, AMS may require the recipient to submit source documentation. To the extent possible, 

recipients will be notified by AMS prior to implementing this decision, which is based on several factors including, but not limited to the 

recipient’s financial capability, review of financial documents and reports, as well as timely submission of reports. 

Source documentation includes, but is not limited to: receipts, canceled checks, paid bills, payrolls, time and attendance records, 

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contracts, invoices, and subaward documents. If recipients pays a portion of the total amount indicated on the source document, they 

must appropriately identify the specific expenses and total amount charged to the grant on the source document. 

4.4 Timely Drawdown and Use of Grant Funds 

AMS may reduce grant award funds without further cause if the recipient does not drawdown funds within the first year of the grant 

period, and at reasonable intervals thereafter. Recipients must schedule payment requests so that all grant funds are obligated 

(encumbered) by the grant agreement’s performance period end date and liquidated within 90 calendar days of that date. If received 

funds have not been obligated by the grant agreement’s performance period end date, the recipient must immediately refund to 

AMS any unobligated (unencumbered) balance of cash. 

5.0 INTEREST EARNED AND ADVANCES OF GRANTS FUNDS 

In accordance with 2 CFR § 200.305 (b)(9), the recipient may retain interest earned up to $500 per year for administrative expense. 

Any additional interest earned on Federal advance payments deposited in interest-bearing accounts must be remitted annually to 

the Payment Management System (PMS) (which handles payments to the Treasury) through an electronic medium using either ACH 

network or a Fedwire Funds Service payment. Remittances must include pertinent information of the payee and nature of payment 

in the memo area (often referred to as “addenda records” by Financial Institutions) as that will assist in the timely posting of interest 

earned on Federal funds. Since the payment does not originate from PMS, the recipient must include pertinent AMS information. 

The remittance must be submitted as outlined in the following examples: 

ACH Returns Example: 

Routing Number: 051036706 

Account Number: 303000 

Bank Name and Location: Credit Gateway—ACH Receiver St. Paul, MN 

Fedwire Returns Example: (Please note organization initiating payment is likely to incur a charge from your Financial Institution 

for this type of payment) 

Routing Number: 

Account Number: 

021030004 

75010501 

Bank Name and Location: Federal Reserve Bank Treas NYC/Funds Transfer Division New York, NY 

If recipients do not have the ability to remit funds electronically, they should instead send a check payable to: The Department 

of Health and Human Services. 

Mail Check to Treasury approved lockbox: 

HHS Program Support Center 

P.O. Box 530231 

Atlanta, GA 30353-0231 

Allow 4-6 weeks for check payments by to be applied to the appropriate PMS account. Any additional information/instructions may 

be found on the PMS Website at https://www.dpm.psc.gov/. 

6.0 PROGRAM INCOME 

Definition: Program income, as defined in 2 CFR § 200.80, means gross income earned by the non-Federal entity that is directly generated 

by a supported activity or earned as a result of the Federal award during the period of performance. 

Program income includes, but is not limited to: 

• Income from fees for services performed; 

• The sale of commodities or items fabricated under an award (this includes items sold at cost if the cost of producing 

the item was funded in whole or partially with grant funds); 

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• Registration fees for conferences, workshops, etc.; 

• Royalties or equivalent income earned from patents, inventions, trademarks, and copyrighted works is not subject to 

this section. 

Treatment: For AMS, the additive method (2 CFR § 200.307(e)(2)) will be used to dispose of program income. 

Any program income generated during the grant period must be used to further the objectives of the grant project. 

All program income must be recorded on the Federal Financial Report (SF-425) for the period in which it was earned. Recipients are 

not accountable for program income earned after the grant period. 

7.0 PROCUREMENTS 

Recipients may acquire commercially-available goods or services in connection with a grant project. In doing so, the recipient must use 

its own documented procurement procedures which may reflect applicable State, local, and tribal laws and regulations, provided that 

the procurements conform to applicable Federal law and the standards 2 CFR § 200.318 GENERAL PROCUREMENT STANDARDS 

through 2 CFR § 200.326 CONTRACT PROVISIONS. 

• State recipients must follow the same policies and procedures the State uses for procurements from non-Federal funds. 

The State will comply with 2 CFR § 200.322 PROCUREMENT OF RECOVERED MATERIALS and ensure that every purchase 

order or other contract includes any applicable provisions described in Appendix II of 2 CFR § 200. 

• All other non-Federal recipients must follow 2 CFR § 200.318 GENERAL PROCUREMENT STANDARDS through § 200.326 

CONTRACT PROVISIONS. 

• The requirements of the Federal award also apply to any subcontract. The recipient is responsible for ensuring that all of its 

contracts made in connection with the AMS project contain the applicable provisions described in Appendix II of 2 CFR § 200. 

8.0 ALLOWABLE COST AND ACTIVITIES 

8.1 Indirect Costs 

Indirect costs (also known as “facilities and administrative costs” (F&A)—defined at 2 CFR § 200.56) – represent the expenses of doing 

business that are not readily-identified with a particular grant, contract, project function or activity, but are necessary for the general 

operation of the organization and the conduct of activities it performs. Refer to 2 CFR §§ 200.413 and 414 for additional information 

on determining if costs charged to the award are direct or indirect. 

As stated in the regulations (2 CFR §§ 200.413and 414), any non-Federal entity that has never received a negotiated indirect cost rate, 

except for those non-Federal entities described in Appendix VII to Part 200—States and Local Government and Indian Tribe Indirect 

Cost Proposals, paragraph D.1.b, may elect to charge a de minimis rate of 10 percent of modified total direct costs (MTDC) which may 

be used indefinitely. As described in 2 CFR § 200.403, costs must be consistently charged as either indirect or direct costs but may not 

be double charged or inconsistently charged as both. If chosen, this methodology, once elected, must be used consistently for all 

Federal awards until such time when a recipient chooses to negotiate for a rate, which the recipient may apply to do at any time. 

All applicants who elect to charge a de minimis rate of 10 percent must use the modified total direct cost (MTDC) as the base. MTDC 

defined in 2 CFR § 200.68 as all direct salaries and wages, applicable fringe benefits, materials and supplies, services, travel, and up 

to the first $25,000 of each subaward (regardless of the period of performance of the subawards under the award). MTDC excludes 

equipment, capital expenditures, charges for patient care, rental costs, tuition remission, scholarships and fellowships, participant 

support costs, and the portion of each subaward in excess of $25,000. Other items may only be excluded when necessary to avoid a 

serious inequity in the distribution of indirect costs, and with the approval of the cognizant agency for indirect costs. 

If a non-Federal entity chooses to negotiate for a rate, the non-Federal entity must contact its cognizant agency for indirect costs. 

Federally Negotiated Indirect Cost Rates 

Unless otherwise required by statute or regulation, AMS will accept Federally-negotiated rates. These requirements flow-down 

through the pass-through entities affecting subawards. 

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8.2 Allowable and Unallowable Costs and Activities 

The following table summarizes allowable and unallowable costs in common categories for the Transportation and Marketing Grants 

Division programs. This section is not intended to be all-inclusive. The recipient should consult the Federal Cost Principles (Subpart 

E-Cost Principles of 2 CFR Part 200 ) for the complete explanation of the allowability of costs. If recipients have questions concerning 

the allowability of costs after reviewing this section, they should contact their AMS representative. 

Note that the allowable costs listed below may also be cost-shared or brought as part of the required match. Unallowable costs 

cannot be brought as a match. 

Cost Category 

Affected 

AMS Grant Program(s) Description, Guidance and Exceptions 

Advisory Councils ALL Unallowable for costs incurred by advisory councils or committees. 

Alcoholic Beverages ALL with exceptions Unallowable for alcoholic beverages. 

Allowable for projects under the SCBGP when the costs are associated 

with enhancing the competitiveness of an eligible processed product 

(products prepared or created for the purposes of promoting a 

specialty crop but that require other ingredients are considered a 

processed product). A processed product is defined as a product that 

constitutes greater than 50% of the specialty crop by weight, exclusive 

of added water. 

Buildings and Land – 

Construction 

ALL Unallowable for the acquisition of buildings, facilities, or land or to 

make additions, improvements, modifications, replacements, 

rearrangements, reinstallations, renovations or alterations of an 

existing building or facility (including site grading and improvement, 

and architecture fees). This also includes construction and 

construction-related materials, which may include, but are not limited 

to the purchase of building materials such as wood, nails, concrete, 

asphalt, roofing, gravel, sand, paint, insulation, drywall, or plumbing. 

Allowable for rental costs of land and building space. However, lease 

agreements to own (i.e., lease-to-own or rent-to-own) are not 

allowable. The lease or rental agreement must terminate at the end of 

the grant cycle. 

A building is any permanent structure designed or intended for 

support, enclosure, shelter or protection of people, animals or property 

having a permanent roof supported by columns or walls. 

Conferences ALL with exceptions Unallowable if the project solely consists of conference/workshop 

costs as defined in 2 CFR § 200.432 with the exception of projects 

funded by the SCBGP. 

Allowable if the conference is a part of a larger project to fulfill the 

purpose of a grant program’s legislated purpose. Allowable conference 

costs paid by the non-Federal recipient as a sponsor or host of the 

conference may include rental of facilities, speakers’ fees, costs of 

meals (see Meals for restrictions), and refreshments, local 

transportation, and other items incidental to such conferences with the 

exception of entertainment costs that are unallowable. If registration 

fees are collected, the recipient must report fees as program income 

(See Program Income). 

Allowable to rent a building or room for training; however, where 

appropriate, AMS encourages the use of technologies such as webinars, 

teleconferencing, or videoconferencing as an alternative to renting a 

building or a room. The recipient should use the most cost-effective 

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facilities, such as State government conference rooms, if renting a 

building or a room is necessary. 

Contingency Provisions ALL Unallowable for miscellaneous and similar rainy-day funds for events 

the occurrence of which cannot be foretold with certainty as to the 

time or intensity, or with an assurance of their happening. Unallowable 

for working capital for activities/items not already in place. 

Contractual/Consultant 

Costs (Professional 

Services) 

ALL Allowable subject to limitations below. Contractual/consultant costs 

are expenses associated with purchasing goods and/or procuring 

services performed by an individual or organization other than the 

recipient in the form of a procurement relationship. 

Allowable for contractor/consultant employee rates that do not 

exceed the salary of a GS-15 step 10 Federal employee in the area (for 

more information, visit the OPM website). This does not include fringe 

benefits, travel, indirect costs, or other expenses. Please note that any 

statutory limitations on indirect costs also apply to contractors and 

consultants. If rates exceed this amount, the recipient is required to 

justify the allowability of the cost aligning with 2 CFR §§ 200.317-326. 

Contributions or ALL Unallowable for contributions or donations, including cash, property, 

Donations and services, made by the recipient to other entities. A non-Federal 

entity using grant funds to purchase food or services to donate to other 

entities and/or individuals is unallowable. 

Electronic Benefit Transfer 

(EBT) Machines 

ALL Unallowable for the purchase/lease of Supplemental Nutrition 

Assistance Program (SNAP) EBT equipment. 

The USDA Food and Nutrition Service (FNS) has existing funding to 

expand the availability of SNAP EBT equipment and services at farmers 

markets through the Farmers Market Coalition and State SNAP 

agencies. Recipients should review the below options to determine 

which is most appropriate. 

• The Farmers Market Coalition provides SNAP-authorized 

farmers markets and direct marketing farmers with free SNAP 

EBT equipment. 

• State SNAP agencies or farmers market associations offer free 

SNAP EBT equipment to newly authorized farmers markets 

and direct marketing farmers. 

• FNS SNAP and Farmers Markets resources provide additional 

EBT information. 

Entertainment Costs ALL with exceptions Unallowable for entertainment costs include amusement, diversion, 

and social activities and any costs directly associated with such costs 

(such as bands, orchestras, dance groups, tickets to shows, meals, 

lodging, rentals, transportation, and gratuities). Entertainment costs 

are defined in 2 CFR § 200.438. 

Allowable for projects under FMLFPP when the costs relate to the 

project; however, they must not represent all or a majority of the 

project costs. 

Equipment ALL Unallowable for acquisition costs of general purpose equipment or 

lease agreements to own (i.e., lease-to-own or rent-to-own). 

Allowable for rental costs of general purpose equipment. Vehicles may 

be leased, but not purchased. The lease or rental agreement must 

terminate at the end of the grant cycle. 

For vehicle and equipment leases or rentals with an acquisition cost 

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that equals or exceeds $5,000, rates should be in light of such factors 

as: rental costs of comparable vehicles and equipment, if any; market 

conditions in the area; alternatives available; and the type, life 

expectancy, condition, and value of the vehicle or equipment leased. 

Allowable for acquisition costs and rental costs of special purpose 

equipment provided the following criterion is met: 

1) Necessary for the research, scientific, or other technical 

activities of the grant award; 

2) Not otherwise reasonably available and accessible; 

3) The type of equipment is normally charged as a direct cost by 

the organization; 

4) Acquired in accordance with organizational practices; 

5) Must only be used to solely meet the legislative purpose of the 

grant program and objectives of the grant award; 

6) More than one single commercial organization, commercial 

product, or individual must benefit from the use of the 

equipment; 

7) Must not use special purpose equipment acquired with grant 

funds to provide services for a fee to compete unfairly with 

private companies that provide equivalent services; and 

8) Equipment is subject to the full range of acquisition, use, 

management, and disposition requirements under 2 CFR § 

200.313 as applicable. 

Definitions 

Equipment is defined as tangible personal property (including 

information technology systems) having a useful life of more than one 

year and a per-unit acquisition cost which equals or exceeds the lesser 

of the capitalization level established by the non-Federal entity for 

financial statement purposes, or $5,000. 

Acquisition cost means the cost of the asset including the cost to 

prepare the asset for its intended use. Acquisition cost for equipment 

includes the net invoice price of the equipment, including the any 

modifications, attachments, accessories, or auxiliary apparatus 

necessary to make it usable for its acquired purpose. 

General Purpose Equipment means equipment that is not limited to 

technical activities. Examples include office equipment and furnishings, 

modular offices, telephone networks, information technology 

equipment and systems, air conditioning equipment, reproduction and 

printing equipment, and motor vehicles. 

Special Purpose Equipment is equipment used only for research, 

scientific, or technical activities. 

Equipment – Information ALL Unallowable for information technology systems having a useful life of 

Technology Systems more than one year and a per-unit acquisition cost which equals or 

exceeds the lesser of the capitalization level established in accordance 

by GAAP by the recipient for financial statement purposes or $5,000. 

Acquisition costs for software includes those development costs 

capitalized in accordance with GAAP. 

Information technology systems include computing devices, ancillary 

equipment, software, firmware, and similar procedures, services 

(including support services), and related resources. Computing devices 

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means machines used to acquire, store, analyze, process, and publish 

data and other information electronically, including accessories (or 

“peripherals”) for printing, transmitting and receiving, or storing 

electronic information. Examples of unallowable information 

technology systems include service contracts, operating systems, 

printers, and computers that have an acquisition cost of $5,000 or 

more. 

Allowable for website development, mobile apps, etc., which are not 

considered to be information technology systems, but rather social 

media applications. 

Farm, Gardening, and 

Production Activities and 

Supplies 

FMLFPP Unallowable for farm, gardening, and production activities, materials, 

supplies, and other related costs including but not limited to soil, seeds, 

shovels, gardening tools, greenhouses, and hoop houses. 

Fines, Penalties, Damages 

and Other Settlements 

ALL Unallowable for costs resulting from violations of, alleged violations of, 

or failure to comply with, Federal, state, tribal, local or foreign laws and 

regulations. 

Fixed Amount Subawards ALL with exceptions Unallowable with the exception of projects funded under the SCBGP. 

Allowable for projects under the SCBGP with prior written approval 

from AMS, a pass-through entity may provide subawards based on 

fixed amounts up to the Simplified Acquisition Threshold, provided that 

the subawards meet the requirements for fixed amount awards in 2 

CFR § 200.201 

Fundraising and 

Investment Management 

Costs 

ALL Unallowable for organized fundraising, including financial campaigns, 

solicitation of gifts and bequests, and similar expenses incurred to raise 

capital or obtain contributions, regardless of the purpose for which the 

funds will be used. This includes salaries of personnel involved in 

activities to raise capital. 

General Costs of 

Government 

ALL Unallowable for: 

1) Salaries and expenses of the Office of the Governor of a State 

or the chief executive of a local government or the chief 

executive of an Indian tribe; 

2) Salaries and other expenses of a State legislature, tribal council, 

or similar local governmental body, such as a county supervisor, 

city council, school board, etc., whether incurred for purposes 

of legislation or executive direction; 

3) Costs of the judicial branch of a government; 

4) Costs of prosecutorial activities unless treated as a direct cost 

to a specific program if authorized by statute or regulation 

(however, this does not preclude the allowability of other legal 

activities of the Attorney General as described in § 200.435 

Defense and prosecution of criminal and civil proceedings, 

claims, appeals and patent infringements); and 

5) Costs of other general types of government services normally 

provided to the general public, such as fire and police, unless 

provided for as a direct cost under a program statute or 

regulation. 

Goods or Services for 

Personal Use 

ALL Unallowable for costs of goods or services for personal use of the 

recipient’s employees regardless of whether the cost is reported as 

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taxable income to the employees. 

Indirect Costs – 

Unrecovered 

ALL with exceptions Unallowable for unrecovered indirect costs. 

Allowable for projects with match requirements to use unrecovered 

indirect costs as part of cost-sharing or matching. Unrecovered indirect 

cost means the difference between the amount charged to the Federal 

award and the amount that could have been charged to the Federal 

award under the potential recipient’s approved negotiated indirect cost 

rate. 

Insurance and 

Indemnification 

ALL Allowable as indirect costs for insurance and indemnification. 

Lobbying ALL Unallowable as defined in 2 CFR § 200.450. 

Meals ALL Unallowable for business meals when individuals decide to go to lunch 

or dinner together when no need exists for continuity of a meeting. 

Such activity is considered an entertainment cost. 

Unallowable for breakfasts for conference attendees because it is 

expected these individuals will have sufficient time to obtain this meal 

on their own before the conference begins in the morning. 

Unallowable for meal costs that are duplicated in meeting participant’s 

per diem or subsistence allowances. 

Allowable for lunch or dinner meals if the costs are reasonable and a 

justification is provided that such activity maintains the continuity of 

the meeting and to do otherwise will impose arduous conditions on the 

meeting participants. 

Allowable for meals consumed while in official travel status. They are 

considered per diem expenses and should be reimbursed in accordance 

with the organization’s established written travel policies. 

Memberships, 

Subscriptions, and 

Professional Activity Costs 

ALL Unallowable for costs of membership in any civic or community 

organization. 

Allowable for costs of membership in business, technical, and 

professional organizations. 

Organization Costs ALL Unallowable for costs of investment counsel and staff and similar 

expenses incurred to enhance income from investments. 

Allowable with prior approval for organization costs per 2 CFR § 

200.455. 

Participant Support Costs ALL Allowable for such items as stipends or subsistence allowances, and 

registration fees paid to or on behalf of participants or trainees (but not 

employees) in connection with approved conferences, training 

projects, surveys, and focus groups. 

Political Activities ALL Unallowable for development or participation in political activities in 

accordance with provisions of the Hatch Act (5 U.S.C. 1501-1508 

and 7324-7326). 

Pre-Award Costs ALL Allowable if such costs are necessary for efficient and timely 

performance of the scope of the project work. Such costs are allowable 

only to the extent that they would have been allowable if incurred after 

the date of the Federal award. 

A recipient may incur pre-award costs 90 calendar days before award. 

Expenses more than 90 calendar days pre-award require prior 

approval. These costs and associated activities must be included in the 

recipient’s project narrative and budget justification. All costs incurred 

before the award are at the potential recipient’s risk. The incurrence of 

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pre-award costs in anticipation of an award imposes no obligation on 

AMS to award funds for such costs. 

Printing and Publications ALL Allowable to pay the cost of preparing informational leaflets, reports, 

manuals, and publications relating to the project; however, the printing 

of hard copies is discouraged given the prevalence of electronic/virtual 

publication means. 

Rearrangement and ALL Allowable as indirect costs incurred for ordinary and normal 

Reconversion Costs rearrangement and alteration of facilities. 

Allowable as direct costs with prior approval for special arrangements 

and alterations costs incurred specifically for the award. 

Rearrangement and reconversion costs are those incurred in restoring 

or rehabilitating the non-Federal entity’s facilities to approximately the 

same condition existing immediately before the start of the grant 

agreement, less costs related to normal wear and tear. 

Salaries and Wages ALL Allowable as part of employee compensation for personnel services in 

proportion to the amount of time or effort an employee devotes to the 

grant-supported project or program during the period of performance 

under the Federal award, including salaries, wages, and fringe benefits. 

Such costs must be incurred under formally established policies of the 

organization, be consistently applied, be reasonable for the services 

rendered, and be supported with adequate documentation. 

Salary and wage amounts charged to grant-supported projects or 

programs for personal services must be based on an adequate payroll 

distribution system that documents such distribution in accordance 

with generally accepted practices of like organizations. Standards for 

payroll distribution systems are contained in the applicable cost 

principles (other than those for for-profit organizations). 

Unallowable for salaries, wages and fringe benefits for project staff 

that devote time and effort to activities that do not meet the legislated 

purpose of the grant program. 

Example: Salaries and wages charged to the SCBGP for a farmers’ 

market manager to manage and advertise a farmers market that 

includes non-specialty crop items is unallowable, while salaries and 

wages for personnel to conduct a cooking demonstration on how to 

prepare fruits and vegetables is allowable. 

Selling and Marketing ALL Unallowable for costs designed solely to promote the image of an 

Costs – Promotion of an organization, general logo, or general brand. 

Organization’s Image, 

Logo, or Brand Name • Promotional items could say “Buy STATE/COUNTY Grown 

Apples” but not “XYZ Grown”, which promotes XYZ generically. 

• A promotional campaign to increase producer sales of 

“STATE/COUNTY Grown fruits and vegetables” is acceptable 

while increasing membership in “STATE/COUNTY Grown” 

generally is not. 

Selling and Marketing ALL Unallowable for costs for promotion of specific venues, tradeshows, 

Costs – Promotion of events, meetings, programs, conventions, symposia, seminars, etc. that 

Venues that do not Align do not align with the legislated purpose of the grant program. 

with Grant Program 

Purpose 

Selling and Marketing 

Costs – Promotional 

ALL with exceptions Unallowable for promotional items, swag, gifts, prizes, memorabilia, 

and souvenirs. 

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Items, Gifts, Prizes, etc. Allowable with conditions for projects funded under FMLFPP for 

marketing activities directly related to the funded project. Promotional 

items include point-of-sale materials, promotional kits, signs or 

streamers, automobile stickers, table tents, and place mats, or 

promotional items of a personal nature. 

Selling and Marketing 

Costs – Coupons, 

Incentives or Other Price 

Discounts 

ALL Unallowable for costs of the value of coupon/incentive redemptions or 

price discounts (e.g., the $5.00 value for a $5.00 clip-out coupon). 

Allowable for costs associated with printing, distribution, or promotion 

of coupons/tokens or price discounts (e.g., a print advertisement that 

contains a clip-out coupon) as long as they benefit more than a single 

program or organization. 

Selling and Marketing 

Costs – Food for Displays, 

Tastings, Cooking 

Demonstrations 

ALL with exceptions Allowable for food for displays, tastings, and cooking demonstrations 

with prior approval. 

Unallowable for projects under LFPP and FSMIP for the purchase of 

food for displays, tastings, and/or cooking demonstrations, displays, or 

tastings. 

Selling and Marketing 

Costs – General Marketing 

Costs 

ALL with exceptions Unallowable for costs designed solely to promote the image of an 

organization, general logo, or general brand. 

Allowable for costs designed to promote products that align with the 

purpose of the grant program. 

Unallowable for projects under FMLFPP for general marketing of the 

health value of food products. (e.g., “Vegetables keep you healthy!”) 

Selling and Marketing 

Costs – Sponsorships 

ALL Unallowable for costs associated with sponsorships. A sponsorship is a 

form of advertising in which an organization uses grant funds to have 

its name and/or logo associated with certain events and where the 

organization does not necessarily know how the funds associated with 

sponsorship costs will be used. These costs also only benefit the 

organization offering funding, limiting the beneficiaries to the sponsor 

organization. 

Selling and Marketing 

Costs – Use of Meeting 

Rooms, Space, Exhibits 

that do not Align with 

Grant Program Purpose 

ALL Unallowable for costs associated with trade show attendance/displays, 

meeting room reservations, and/or any other displays, demonstrations, 

exhibits, or rental of space unless the activities specifically align with 

the purpose of the grant program. See Conferences for more 

information. 

Selling and Marketing 

Costs – Cookbooks, Recipe 

Cards, Food Pairings 

SCBGP Unallowable for costs of separate complementary non-specialty crop 

products. A separate complementary non-specialty crop product 

means a product closely associated with a specialty crop product, the 

purchase of one encouraging consumers to buy the other (i.e., cheese 

and wine). 

Allowable for costs promoting the specialty crops in processed 

products (products prepared or created for the purposes of promoting 

a specialty crop but that require other ingredients are considered a 

processed product). A processed product is defined as a product that 

constitutes greater than 50% of the specialty crop by weight, exclusive 

of added water. 

Supplies and Materials, 

Including Costs of 

Computing Devices 

ALL Allowable for costs incurred for materials, supplies, and fabricated 

parts necessary to carry out a Federal award. Purchased materials and 

supplies must be charged at their actual prices, net of applicable 

credits. Withdrawals from general stores or stockrooms should be 

charged at their actual net cost under any recognized method of pricing 

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inventory withdrawals, consistently applied. Incoming transportation 

charges are a proper part of materials and supplies costs. Only 

materials and supplies actually used for the performance of a Federal 

award may be charged as direct costs. 

A computing device is a supply if the acquisition cost is less than the 

lesser of the capitalization level established by the recipient for 

financial statement purposes or $5,000, regardless of the length of its 

useful life. In the specific case of computing devices, charging as direct 

cost is allowable for devices that are essential and allocable, but not 

solely dedicated, to the performance of a Federal award. Where 

Federally-donated or furnished materials are used in performing the 

Federal award, such materials will be used without charge. 

Training ALL Allowable when the training is required to meet the objectives of the 

project or program, including training that is related to Federal grants 

management. 

Travel – Domestic ALL Allowable for domestic travel, when costs are limited to those allowed 

by formal organizational policy and the purpose aligns with the 

legislated purpose of the program. 

Recipients that do not have formal travel policies and for-profit entities 

allowable travel costs may not exceed those established by the Federal 

Travel Regulation, issued by General Services Administration (GSA), 

including the maximum per diem and subsistence rates prescribed in 

those regulations. If a recipient does not have a formal travel policy, 

those regulations will be used to determine the amount that may be 

charged for travel costs. 

Travel – Government 

Officials 

ALL with exceptions Unallowable with the exception of projects funded under the SCBGP. 

Allowable with prior approval for projects under the SCBGP for 

government officials per 2 CFR § 200.444. 

Travel – Foreign ALL with exceptions Allowable with the exception of projects funded under the FMLFPP. 

Foreign travel includes any travel outside Canada, Mexico, the United 

States, and any United States territories and possessions. However, the 

term ‘‘foreign travel’’ for a governmental unit located in a foreign 

country means travel outside that country. Projects must provide 

justification for the travel. AMS recommends that recipient search the 

Foreign Agricultural Service database of GAIN reports 

(http://gain.fas.usda.gov/Pages/Default.aspx) to ensure that proposals 

will not duplicate information that already exists. 

9.0 CHANGES REQUIRING PRIOR WRITTEN APPROVAL 

AMS anticipates that as the grant project progresses, the recipient may need to modify their budget to accomplish the objectives. 

Recipients have some flexibility to re-budget within and between budget categories to meet unanticipated needs, and to make other 

types of post-award changes. However, in some cases, recipients are required to request prior written approval from AMS in advance 

of a change or obligation of funds. Requests for prior written approval must be submitted via email to the AMS representative. 

Every request for a prior written approval must include the following information: 

1. Grant agreement number; 

2. Project title; 

3. Name of the recipient organization; 

4. Project point of contact name; and 

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5. Email from the recipient project coordinator. 

Once the recipients submits the request, AMS will confirm receipt, review the request, and communicate with the recipient project 

coordinator if there are any questions or concerns. The recipient project coordinator may revise the prior approval request to address 

the questions and concerns. Once approved, AMS will email the recipient project coordinator with the approval of the request. 

9.1 Change in Key Personnel/Time Devoted to the Project 

The recipient must request prior written approval if there is a change in key personnel (such as the recipient project coordinator listed 

in block 14, of the AMS-33 Grant Agreement Face Sheet, the authorized recipient representative listed in blocks 18 and 19 of the 

AMS-33 Grant Agreement Face Sheet, and other key project contributors) or if a key personnel disengages from the project for a 

period of more than 3 months; reduces the time devoted to managing the project by 25 percent (25%) or more; or severs his/her 

connection to the activities of the grant agreement. The request must contain: 

1. The name of the individual being replaced and the new individual name and contact information; 

2. The qualifications of the new individual; 

3. The capacity in which thenewindividualwillserve; 

4. Written notification from the new individual signifying his/her willingness to serve on the project; 

5. If applicable any change in the project narrative, budget and/or timeline due to the change; and 

6. The effective date. 

9.2 Change in Scope or Objectives 

The recipient must request prior written approval when it is necessary to modify scope or objective of the project or program, 

including adding new project(s) or discontinuing project(s) (if applicable). 

Written approval is required even if there is no associated budget revision that would require prior written approval. The recipient 

must use the same format/template to present this information that was used in the approved application with the changes noted. 

The request must include: 

1. A description of the change in the scope or objective including what activities the new work replaces; 

2. A revised narrative for the relevant portion of the approved project; 

3. If applicable, a description of any changes to the outcome measures; 

4. If applicable, a revised budget and narrative using the respective program templates; 

5. If applicable, any change to the approved timeline; 

6. A change in matching fund source (if applicable); and 

7. The proposed dates of implementation (MM/YYYY – MM/YYYY). 

9.3 One-TimeExtension 

If the project cannot be completed within the time frame established in the grant agreement, the recipient may request prior written 

approval to extend the ending date of the grant agreement (no-cost extension of time). As outlined in 2 CFR 200.308 (d)(2), the 

recipient may request a one-time extension of the period of performance by up to 12 months of the end date of the period of 

performance (block 15 of AMS-33 Grant Agreement Face Sheet) unless specific program requirements prohibit the extension beyond 

the maximum allowed period of performance. The request must be submitted no later than 10 days prior to the ending date of the 

grant agreement. The request must include the following: 

1. The length of additional time requested, and the new ending date requested; 

2. A justification for the extension; 

3. A summary of progress to date in terms of the project timeline and objectives. The summary may reference the most recent 

Performance Report and indicate how circumstances have changed since then; 

4. An estimate of the amount of remaining funds, and if applicable, the amount of matching resources yet to be expended, 

and a description of how they will be used in the remaining time; and 

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5. A new timetable for completing the project. 

The fact that funds are expected to remain unutilized or unobligated at the end of the award is not in itself sufficient justification to 

receive a no-cost extension of time. Decisions will be made on a case-by-case basis by AMS based on the written justification provided. 

9.4 Budget Change 

The recipient must request prior approval for a budget change if the Federal share of its award exceeds the Simplified Acquisition 

Threshold as stated in 2 CFR 200.88, (see block 16 on the AMS-33 Grant Agreement Face Sheet for the Federal award amount) 

and the cumulative amount of a transfer between individual projects (applicable only to SCBGP) or among budgeted direct cost 

categories (for all other grant programs) exceeds or is expected to exceed 10 percent of the total award budget as last approved 

by AMS. If the Federal share of the award is less than the Simplified Acquisition Threshold, recipients do not need to request prior 

approval for budget changes. The request for a budget change must include: 

1. A justification for the change; and 

2. A description of the requested change that includes: 

a. The proposed budget change, 

b. Last approved budget, and 

c. An updated budget of the affected cost categories. 

9.5 Pre-Award Costs 

Pre-award costs are costs incurred prior to the effective date of the Federal award directly pursuant to the negotiation and in 

anticipation of the Federal award where such costs are necessary for efficient and timely performance of the scope of work. Refer 

to Pre-Award Costs under section 8.2 Allowable and Unallowable Costs and Activities for more information. The request for prior 

written approval for allowable pre-award costs must include the following: 

1. A brief description of the pre-award activities completed; and 

2. An updated budget, using the same format for presenting the budget information that was used in the approved 

application, clearly indicating the associated dollar amount of award funds and/or the value of any matching resources 

expended during the pre-award period. 

9.6 Contracting or Subawarding for Activities Central to the Award’s Purpose(s) 

The recipient must request prior written approval for a change that involves subawarding, transferring, or contracting out of any work 

under a Federal award or executing a fixed amount subaward. This provision does not apply to the acquisition of supplies, material, 

equipment, or general support services. Refer to Fixed Amount Subawards under section 8.2 Allowable and Unallowable Costs and 

Activities for more information. The following information must be included in the request: 

1. A brief description of and justification for the change; 

2. A brief description of the non-Federal entity’s qualifications, and how their work will fulfill the project goals; 

3. If a modification to the budget is required: 

a. A description of the proposed modification, 

b. The last approved budget, and 

c. An updated budget of the affected cost categories using the same format as was used in the approved application with 

changes noted; and 

4. If the third party was not identified in the original application, a description of the third party’s qualifications, how their 

work will fulfill the project goals, and an itemized budget (if applicable) showing cost categories with appropriate 

justification must be submitted. 

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9.7 Specific Allowable Costs Prior Approvals 

The recipient must request prior written approval for the following allowable costs that were not included in the approved project 

and/or the latest budget. See 8.2 Allowable and Unallowable Costs and Activities for more information on these costs. 

• Rental of Land 

• Special Purpose Equipment 

• Organization Costs 

• Rearrangement and Reconversion Costs 

• Entertainment 

• Selling and Marketing Costs 

• Participant Support Costs 

The request must include the following: 

• A description of and justification for the cost including how it furthers the objectives of the project; and 

• If applicable, a comparison between the most recent budget and the proposed budget as well as an updated budget 

narrative of the affected cost categories. Recipients must use the same format for presenting the budget information that 

was used in the approved application with changes noted. 

9.8 Changes to Recipient Name or Address 

If the recipient is contemplating changing the name of the recipient organization or address, the recipient is advised to contact their 

AMS representative for additional information on how this action may affect the award. This is a change to the recipient organization 

in block 12, “Recipient” on the fully executed AMS-33 Grant Agreement Face Sheet. In this case, the DUNS number would remain the 

same, while only the organization name or address would change. Recipients are responsible for properly updating their registration 

within both the DUNS and SAM.gov electronic systems. The recipients must inform AMS of any pending changes in its legal status, 

divesture or bankruptcy. 

The request must include the new name or address of the recipient organization and the effective date of change. 

NOTE: A request to a have a new recipient organization (that has a new DUNS number) assume responsibility for the project is not 

allowable. 

9.9 Cost-Share or Match – Changes in the Amount 

If the award has specific cost-sharing or matching requirements the recipient must request prior written approval to change the 

amount of the approved cost-share or match or to change the amount of approved cost-sharing or match provided by a project 

partner or by a subrecipient. The following information must be included in the request: 

1. A justification for the change; 

2. Cash Commitment per year (if applicable) and Total Cash Match 

3. In-kind Contribution per year (if applicable) and Total In-kind Match. Break down items into categories as applicable: 

a. Salaries (employee name, title, duties, pay rate/hr, amount matched per year) 

b. Items/Activities (fair market value per unit, how value determined (provide documentation), and amount matched per 

year) 

4. A description of how the required match will be met including the source of the match, the amount of the match to be 

provided, and the composition of the match. Recipient must use the same format for presenting the match verification that 

was used in the approved application; and 

5. A description of the change that includes a comparison between the latest budget and the proposed budget as well as an 

updated budget narrative of the affected cost categories to demonstrate that the overall required match will be met. The 

recipient must use the same form/ format for presenting the budget information that was used in the approved application. 

6. The recipient may use the SUGGESTED MATCH VERIFICATION TEMPLATE LETTER as a starting point for developing its change 

request. Please add any additional information requested above to the letter. 

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10.0 PERFORMANCE AND FINANCIAL REPORTS 

AMS requires both annual and final reports to illustrate the progress made toward the completion of projects, goals, objectives, and 

outcomes as well as the overall financial status of the grant. These reports are an important vehicle for sharing award findings and 

success with the public. Performance Reports should correspond with the activities and outcomes outlined in the proposal and 

should be formatted and submitted using the approved templates or guidance provided by the grant program. 

AMS also requires recipients to submit an annual SF-425 Federal Financial Report with each a performance report to report and 

account for their financial expenditures during that reporting period. 

If due to extenuating circumstances, a project must be extended beyond the performance period stated on the Award Agreement 

(AMS-33), recipients should see section 9.3 One-Time Extension. Additional performance and financial reports may be necessary 

depending on the length of the time extension. 

If performance or financial reports are prepared by a third party and/or subrecipient, it is the recipient’s responsibility to review 

and approve the report before forwarding it to AMS. 

10.1 Annual Performance and Financial Reports 

Annual performance and financial reports track the progress of an award throughout the performance period. The SF-425 Federal 

Financial Report and performance report are due annually within 90 calendar days of each annual performance reporting period 

(block 15 of the AMS-33 Grant Agreement Face Sheet) end date. 

The annual performance and financial report should be emailed to the appropriate AMS representative. AMS will confirm receipt of 

the interim performance and financial reports, review them, and communicate questions or concerns. Accepted interim reports and 

financial reports will become part of the official grant file. The authorized organization representative must sign the SF-425 and 

submit the form via email to AMS. The original form should be retained in the program file. 

The required report template and the SF-425 Federal Financial Report, along with instructions and a sample financial report, can be 

found on the applicable grant program’s website. Go to https://www.ams.usda.gov/services/grants, click on the applicable grant 

program website, then click on “How to Administer the Award” in the left menu bar. 

If the recipient completes the grant project early, they may submit a Final Performance Report in lieu of a Performance Report. 

See 10.2 Final Performance and Financial Reports. 

10.2 Final Performance and Financial Reports 

A final performance report and a SF-425 Federal Financial Report are required to be submitted no later than 90 calendar days after 

the performance period expiration (section 15 on Award Face Sheet) date unless AMS approves a no-cost extension. 

The respective program required final report template, and the SF-425 Federal Financial Report, along with instructions and a sample 

financial report, can be found on the applicable grant program’s website. Go to https://www.ams.usda.gov/services/grants, click on 

the applicable grant program website, then click on “How to Administer the Award” in the left menu bar. 

The final performance and financial report should be emailed to the appropriate AMS representative as indicated in the award 

letter. AMS will confirm receipt of the final performance report, review it, and communicate with the recipient project coordinator 

regarding questions or concerns. 

10.3 Review of Performance and Financial Reports 

AMS will review performance and financial reports to ensure completeness and progress toward meeting the project goals and 

measurable outcomes as well as compliance with Federal assistance regulations. AMS will notify the recipient project coordinator if 

additional information is required. The recipient project coordinator is responsible for adequately addressing all AMS comments and 

questions prior to sending the revised performance or financial report. 

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10.4 Public Access to Performance Reports and Information on Report Content 

Accomplishments, procedures, and other benefits resulting from the Federally-funded project may be made available publicly through 

online posting, as well as through Freedom of Information Act (FOIA) requests. The AMS website is the primary means to distribute 

final results of each Federally-funded grant project, although additional proposal/project information, within the regulations, will be 

released under the FOIA. 

Since the information will be made public, particularly the information contained in the Final Performance Reports, AMS encourages 

the recipient to eliminate as many grammatical and spelling errors as possible in submitted forms and materials. AMS will not edit 

the reports beyond checking to ensure that the content is complete, including the inclusion of activities and outcomes associated 

with each project. Should AMS find that the report is incomplete, the recipient will have the opportunity to revise the report and to 

address questions and concerns prior to the information being made available through the AMS website. 

10.5 Disparaging Language and Protected Personally Identifiable Information (PII) 

Grant recipients are prohibited from using AMS grant funds to conduct any activity that is false, misleading, or disparaging toward 

agricultural commodities or products or to disparage the mission, goals, and/or actions of another organization or individual in 

performance reports or through other means. 

The term “PII,” as defined in OMB Memorandum M-07-16 refers to information that can be used to distinguish or trace an individual’s 

identity, either alone or when combined with other personal or identifying information that is linked or linkable to a specific 

individual. Non-PII can become PII whenever additional information is made publicly available — in any medium and from any source 

— that, when combined with other available information, could be used to identify an individual. 

Reports submitted to AMS must avoid use of Protected PII, including use of an individual's first name or first initial and last name in 

combination with any one or more of types of information, including, but not limited to, social security number, passport number, 

credit card numbers, clearances, bank numbers, biometrics, date and place of birth, mother's maiden name, criminal, medical and 

financial records, educational transcripts, etc. Personal contact information included in the Final Report should be limited to the 

recipient project coordinator name, e-mail address, as well as organization name, physical address, and telephone number. 

10.6 Overdue Reports 

Events may occur between the scheduled performance reporting dates that have significant impact upon the project. In such cases, 

the recipient must inform AMS as soon as they are aware of problems, delays, or adverse conditions, preferably no less than 14 

calendar days from the due date. This disclosure must include a statement of the action taken, or contemplated, and any assistance 

needed to resolve the situation. If AMS detects a recurring issue of late report submissions, enforcement actions as described in 

section 17.0 Remedies for Noncompliance may be taken. 

11.0 ACKNOWLEDGEMENT OF SUPPORT 

Recipients are not required, but encouraged to acknowledge USDA, AMS support through oral or written presentation. If the 

recipient chooses to add an acknowledgement of support, it must read as follows: 

Funding for [Project or Publication] was made possible by the U.S. Department of Agriculture’s (USDA) Agricultural Marketing 

Service through grant [Insert Agreement Number]. Its contents are solely the responsibility of the authors and do not necessarily 

represent the official views of the USDA. 

Note that USDA symbols or logos are only intended for the official use of the USDA. They are expressly excluded from use to imply 

endorsement of a commercial product or service. The symbol or logo may not be used by anyone outside of USDA without 

permission. 

USDA-AMS encourages grant recipients to coordinate any public announcement, press release, press interviews, web or social 

posting with our Public Affair’s Office. USDA-AMS would like to partner with grant recipients to highlight outcomes and 

accomplishments at the regional and national level. Sharing your story will help USDA-AMS: 

• Illustrate to the American people how AMS grants are improving their lives 

• Report to Congress that AMS grants projects are making a difference 

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• Inform state and local governments how their partnership betters their communities 

• Enable USDA leadership to make sound decisions regarding mission priorities 

If you would like to share your story send an email to your AMS representative. 

12.0 PROPERTY MANAGEMENT 

A title to special purpose equipment and supplies acquired by the recipient will vest, upon acquisition, in the recipient. Recipients 

must provide the equivalent insurance coverage for equipment acquired with Federal funds. 

Recipients are expected to maintain property records that include a description of the property, a serial number or other 

identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property, 

percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, 

use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. 

This is in addition to the other requirements of use, management, and disposal of special purpose equipment and supplies acquired 

under a grant in accordance with 2 CFR § 200.313 and 2 CFR § 200.314 respectively. 

12.1 Disposition of Equipment and Supplies 

If the special purpose equipment has a per-unit fair market value of less than $5,000, and the equipment is no longer needed for 

the original project or program or for other activities currently or previously supported by a Federal awarding agency, the recipient 

may retain, sell, or dispose of equipment with no further obligation to AMS. 

If the special purpose equipment or supplies have a per-unit fair market value of $5,000 or more, and the equipment or supplies are 

no longer needed for the original project or program or for other activities currently or previously supported by a Federal awarding 

agency, the recipient may retain the equipment and supplies, or they may be sold. In this case, the recipient acting on its own behalf 

or as the pass-through entity must complete a: 

• Tangible Personal Property Report Disposition Request/Report (SF-428-C) during the period of performance or 

• Tangible Personal Property Final Report (SF-428-B) at the grant agreement’s closeout. 

Email this report to AMS as a written disposition request/report. A sample Tangible Personal Property Final Report can be found on 

the applicable grant program’s website. Go to https://www.ams.usda.gov/services/grants, click on the applicable grant program 

website, then click on “How to Administer the Award” in the left menu bar. 

AMS will review the request and provide disposition instructions for the special purpose equipment and/or supplies. The disposition 

instructions will notify the recipient that AMS is entitled to an amount calculated as follows: 

AMS Amount = Current Market value or proceeds from sale of the equipment/supplies 

X Percentage of AMS participation in the cost of the original purchase 

If the equipment and/or supplies are sold, the recipient is permitted to deduct and retain from the Federal share $500 or 10 percent 

of the proceeds, whichever is less, for its sale and handling expenses. Recipient is responsible for ensuring that its subrecipient 

disposes of the equipment and/or supplies in accordance with AMS disposition instructions. 

13.0 ADMINISTRATIVE AND NATIONAL POLICY REQUIREMENTS 

Several Federal statutes and regulations apply to grant applications considered for review and to project grants awarded under this 

program. These include, but are not limited to the ones listed below. 

Federal statutes and regulations found on the SF-424B “Assurances –Non-Construction Programs” (this form was submitted through 

Grants.gov with the application package) 

2 CFR § 25 – System for Award Management and Universal Identifier Requirements. See Appendix A to §25 – Award Term for Central 

Contractor Registration and Universal Identifier Requirements. 

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2 CFR § 170 – Reporting Subaward and Executive Compensation Information. See Appendix A to §170 – Award Term for Reporting 

Subawards and Executive Compensation requirements. 

2 CFR § 175 – Award Term for Trafficking in Persons 

2 CFR §§ 180 and §417 – OMB Guidelines to Agencies on Government-Wide Debarment and Suspension (Nonprocurement) and USDA 

Nonprocurement Debarment and Suspension 

2 CFR § 182 – Governmentwide Requirements for Drug-Free Workplace (Financial Assistance) 

2 CFR § 200 – Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards 

2 CFR § 400 – USDA implementation of 2 CFR §200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for 

Federal Awards 

2 CFR § 415 – USDA General Program Administrative Regulations 

2 CFR § 416 – USDA General Program Administrative Requirements for Grants and Cooperative Agreements to State and Local 

Governments 

2 CFR § 417 – USDA Nonprocurement Debarment and Suspension 

2 CFR § 418 – USDA implementation of New Restrictions on Lobbying 

2 CFR § 421 – USDA Implementation of Government-wide Requirements for Drug-Free Workplace (Financial Assistance) 

2 CFR § 422 – Research Institutions Conducting USDA-Funded Extramural Research; Research Misconduct 

7 CFR § 1, subpart A – USDA implementation of the Freedom of Information Act 

7 CFR § 1(b) – USDA procedures to implement the National Environmental Policy Act of 1969, as amended 

7 CFR § 3 – USDA implementation of OMB Circular No. A-129 regarding debt collection 

7 CFR § 15, subpart A – USDA implementation of Title VI of the Civil Rights Act of 1964, as amended, which prohibits recipients from 

discriminating on the basis of race, color, or national origin (42 U.S.C. 2000d et seq.) 

Public Law 110-417 – Duncan Hunter National Defense Authorization Act of Fiscal Year 2009 

8 U.S.C. Section 1324a. – Unlawful employment of aliens 

29 U.S.C. 794 – Nondiscrimination under Federal grants and programs 

41 U.S.C. § 22 – Interest of Member of Congress 

41 U.S.C. § 4712 – Pilot program for enhancement of contractor protection from reprisal for disclosure of certain information 

EO 13513, Federal Leadership on Reducing Text Messaging While Driving 

EO 13166, Improving Access to Services for Persons with Limited English Proficiency, take reasonable steps to ensure that LEP persons 

have meaningful access to programs in accordance with LEP Implementation Strategy for AMS’ Federally-Assisted Programs. 

7 CFR § 331 and 9 CFR §121—USDA implementation of the Agricultural Bioterrorism Protection Act of 2002 

35 U.S.C. 200 et seq.—Bayh Dole Act, controlling allocation of rights to inventions made by employees of small business firms and 

domestic nonprofit organizations, including universities, in Federally-assisted programs (implementing regulations are contained in 

37 CFR § 401). 

41 CFR §§ 301-10.131 to 301-10.143 – Use of United States Flag Air Carriers, which implements the Fly America Act (49 U.S.C. 40118). 

For more information see http://www.gsa.gov/portal/content/103191. 

48 CFR § 25 – Foreign Acquisition, which implements the Buy American Act (41 U.S.C. Ch. 83) 

48 CFR subpart 31.2 – Contracts with Commercial Organizations 

44 U.S.C. 3541 et seq. (Pub. L. 107-347) – Federal Information System Security Management Act of 2002 (FISMA) 

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Motor Vehicle Safety – Highway Safety Act of 1966, as amended (23 U.S.C. 402 & 403); Government Organization and Employees Act, 

as amended (5 U.S.C. 7902 (c)); Occupational Safety and Health Act of 1970, as amended (29 U.S.C. 668); Federal Property and 

Administrative Services Act of 1949, as amended (40 U.S.C. 101, et seq.); Increasing Seat Belt Use in the United States (EO 13043); 

Federal Leadership on Reducing Text Messaging While Driving (EO 13513) 

Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 2012, P.L. No. 112-55, 

Division A, Sections 738 and 739 regarding corporate felony convictions and corporate Federal tax delinquencies 

14.0 CLOSEOUT 

The recipient and AMS will close out the Federal award when all applicable administrative actions and required work are completed, 

as provided in 2 CFR § 200.343. When an award is closed out, terminated or partially terminated, the recipient is responsible for 

compliance with the requirements in 2 CFR § 200.344 Post-Close Out Adjustments and Continuing Responsibilities. 

The recipient must submit, no later than 90 calendar days after the grant end date, all financial, performance, and other reports as 

required by these award terms and conditions. 

14.1 Closeout Checklist 

The following documents must be submitted to and approved by AMS to successfully close out a grant: 

1) Final Performance Report (see Section 10.2) and any project deliverables (e.g., photos, brochures, other print materials from 

the project). 

2) Final Federal Financial Report (SF-425) (Section 10.2) 

3) Request for Final Advance Payment or Reimbursement (SF-270) (see Section 4.2 and subsections) 

4) If applicable, a refund check for any unused funds (see Section 14.2) 

5) Tangible property report (SF-428 B) (if applicable) (see Section 12.1) 

6) Audit report (see Section 2.1) (If applicable) 

Requirements for Reapplication 

Upon receiving and accepting all closeout documents, AMS will issue a closeout letter. Failure to submit acceptable closeout 

materials for an existing grant within 90 calendar days following the grant ending date may result in exclusion from future AMS 

grant consideration. 

14.2 Unused and Returned Funds 

Before submitting an SF-425 for a grant that has been completed or terminated, the recipient must liquidate all obligations not later 

than 90 calendar days after the performance period end date of the grant agreement. If the recipient has a balance of funds that 

AMS disbursed previously and the recipient did not obligate by the performance end date of the grant agreement, the recipient 

must return these funds to AMS. AMS’s request to return an unobligated balance following expiration or termination of a grant is 

not considered an adverse action and is not subject to appeal. 

Return the funds payable by check to the “Agricultural Marketing Service.” Because packages sent to AMS through the United States 

Postal Service may be damaged or delayed due to security procedures at USDA Washington, D.C. headquarters, the use of express 

mail or courier services is required. 

Send payments by Express mail or courier submission to: 

[Grant Program Name] 

Attn: [Grant Program Name] Team Lead 

USDA, Agricultural Marketing Service 

1400 Independence Avenue, SW 

Room 4543– South Building 

Stop 0264 

Washington, DC 20250-0264 

AMS will notify the recipient when check is received. 

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15.0 RECORD RETENTION 

In accordance with Federal regulations, the recipient must retain all records relating to the grant for a period of 3 years after the final 

Federal Financial Report (SF-425) is received by AMS or until final resolution of any audit finding or litigation. See 2 CFR §200.333 

for exceptions and qualifications to the 3-year retention requirement and the retention period for other types of grant-related 

records, including property records. 

In accordance with the May 2013 Executive Order on Making Open and Machine Readable the New Default for Government 

Information, the recipient should, whenever practicable, collect, transmit, and store Federal award-related information in electronic 

formats rather than on paper. However, the recipient must always provide or accept paper versions of award-related information 

to and from any subrecipients upon request. 

16.0 ACCESS TO RECORDS 

AMS, Inspectors General, the Comptroller General of the United States, and the pass-through entity, or any of their authorized 

representatives, shall have the right of access to any pertinent documents, papers, or other records of recipients and subrecipients 

which are pertinent to the award, in order to make audits, examinations, excerpts, and transcripts. The right also includes timely 

and reasonable access to the recipient’s and subrecipient’s personnel for the purpose of interview and discussion related to such 

documents. 

17.0 REMEDIES FOR NONCOMPLIANCE 

AMS may take one or more of the following remedies for a recipient’s failure to comply with the award terms and conditions, including 

reporting requirements, depending on the severity and duration of the non-compliance, according to applicable statutes, regulations, 

and policies. In addition to the below options AMS take other remedies that may be legally available, including initiating suspension or 

debarment under 2 CFR §180. 

The recipient may have an opportunity to correct the deficiencies before AMS takes enforcement action; however, AMS may take 

proactive steps to protect the Federal government’s interests, including placing special conditions on awards in accordance with 2 CFR 

§200.338 such as requiring more frequent reporting or requiring the recipient to obtain technical or management assistance. 

17.1 Disallow Costs 

AMS may disallow (deny use of funds) for all or part of the cost of the activity or action not in compliance. 

17.2 Withdrawal of Authorized Personnel Approval 

AMS may withdraw its approval of the Authorized Representative and/or other project representatives if the Agency concludes that 

they are no longer qualified or competent to perform. If this occurs, AMS may request that the recipient designate a new Authorized 

Representative or other key personnel. The decision to impose special conditions by withdrawing approval of the Recipient 

Authorized Representative or other key personnel, or otherwise is discretionary on the part of AMS and not subject to appeal. 

17.3 Withholding of Payments 

AMS may temporarily withhold cash payments pending correction of the deficiency by the recipient, in accordance with 2 CFR 

§200.205. This decision is discretionary on the part of AMS and not subject to appeal. 

17.4 Withholding of Support 

AMS may decide not to make an award within the current award cycle if a recipient failed to meet the terms and conditions of a 

previous award or if continued funding would not be in the best interests of the Federal government. 

17.5 Suspension or Termination 

AMS generally will suspend (rather than immediately terminate) a grant and allow the recipient an opportunity to take appropriate 

corrective action before terminating a project. AMS may terminate the grant if the recipient does not take appropriate corrective 

action during the period of suspension. AMS may also terminate the grant —without first suspending—if the deficiency is so serious 

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as to warrant immediate termination or if public health or welfare concerns require immediate action. AMS will provide the 

recipient a notice of termination that will include the reason(s) for the termination and if the decision will be considered in 

evaluating future applications. 

AMS or the recipient may mutually terminate a grant award, partially or totally, if the two parties agree upon the termination 

conditions, including the effective date and the portion to be terminated. If the recipient decides to terminate a portion of a grant 

award, AMS may determine that the remaining portion of the grant award will not accomplish the purposes for which the grant 

award was originally awarded. The recipient must contact the AMS representative should it decide to terminate all or part of its 

award. 

When an award is terminated or partially terminated, the recipient is responsible for compliance with section 14.0 Closeout 

requirements. 

17.6 Special Conditions for High-Risk Recipients 

AMS may impose additional award conditions per 2 CFR §200.205(b) on the recipient that correspond to the degree of risk assessed. 

This evaluation may incorporate results of the evaluation of the applicant's eligibility or the quality of its application. If AMS determines 

that a Federal award will be made, special conditions that correspond to the degree of risk assessed may be applied to the Federal 

award. These specific award conditions are specified in 2 CFR §200.207. Note that AMS will promptly remove any special conditions 

once the conditions that prompted them have been corrected. 

18.0 SITES VISITS 

AMS may conduct periodic site visits, at its own expense, to review project accomplishments and monitor progress, review financial 

and performance records, organizational procedures and financial control systems and to provide technical assistance as may be 

required. AMS will make every effort to notify the awardee at least two weeks in advance of any trip to the AMS-funded project 

location. If AMS makes any site visit on the premises of a recipient or a subrecipient(s), the recipient must provide, and must require 

its subrecipients to provide, all reasonable facilities and assistance for the safety and convenience of government officials in the 

performance of their duties. All site visits and evaluations are expected to be performed in a manner designed to not unduly delay 

the implementation of the project. 

19.0 APPEALS 

The first step to appeal a decision to remedy non-compliance is to submit a written request for review to the AMS Federal Agency 

Project Manager (Team Lead), as indicated in block 13 of the AMS-33 Grant Agreement Face Sheet, unless directed otherwise. The 

appeal letter must explain the decision or action it is appealing, describe what happened, and provide any documents that support 

the appeal. AMS will review the notification and respond within 30 calendar days. 

AMS encourages all recipients to try to resolve disputes by using alternative dispute resolution (ADR) techniques. ADR often is 

effective in reducing the cost, delay, and contentiousness involved in appeals and other traditional ways of handling disputes. ADR 

techniques include mediation, neutral evaluation, and other consensual methods. 

20.0 LIMIT OF FEDERAL LIABILITY 

The maximum obligation of AMS to the recipient is the amount indicated in the award as obligated by AMS. Nothing in these award 

terms and conditions or in the other requirements of this award requires AMS to make any additional award of funds or limits its 

discretion with respect to the amount of funding provided for the same or any other purpose. However, in the event that an 

erroneous amount is stated in the award, the approved budget, or any supporting documentation relating to the award, AMS must 

have unilateral right to make the correction and to make an appropriate adjustment in the AMS share of the award to align with the 

Federal amount authorized. 

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21.0 FRAUD, WASTE, AND ABUSE 

Anyone who becomes aware of the existence (or apparent existence) of fraud, waste, or abuse related to AMS grants or use of grant 

funds should report this information to USDA. The USDA Office of the Inspector General (OIG) provides several means, including tollfree numbers, for this purpose. Recipients may reach the OIG hotline by: 

Office of the Inspector General, United States 

Department of Agriculture 

Attn: HOTLINE 

PO Box 23399 

Washington, DC 20026-3399 

Telephone: 1-800-424-9121 (toll free) or 202-690-1202 (TDD); 

Fax: 202-690-2474 

E-mail: usda_hotline@oig.usda.gov 

Internet: http://www.usda.gov/oig/hotline.htm 

Fraud, waste, and abuse includes, but is not limited to, embezzlement, misuse, or misappropriation of grant funds or property, and 

false statements and misrepresentation, whether by organizations or individuals. Examples are theft of grant funds for personal use; 

using funds for non-grant-related purposes; theft of Federally owned property or property acquired or leased under a grant; 

charging inflated building rental fees for a building owned by the recipient; submitting false financial reports; and submitting false 

financial data in bids submitted to the recipient (for eventual payment under the grant). Callers are not required to give their names 

and, if they do, OIG keeps their identities confidential. 

The Federal government may pursue administrative, civil, or criminal action under a variety of statutes that relate to fraud and false 

statements or claims. Even if the Federal government does not award a grant, the applicant may be subject to penalties if the 

information contained in or submitted as part of an application, including its certifications and assurances, is found to be false, 

fictitious, or fraudulent. 

22.0 PROHIBITION CONFIDENTIALITY AGREEMENTS 

Prohibition against using funds under grants and cooperative agreements with entities that require certain internal confidentiality 

agreements are described below. 

(a) The recipient may not require its employees, contractors, or subrecipients seeking to report fraud, waste, or abuse to sign or 

comply with internal confidentiality agreements or statements prohibiting or otherwise restricting them from lawfully reporting 

that waste, fraud, or abuse to a designated investigative or law enforcement representative of a Federal Department or agency 

authorized to receive such information. 

(b) The recipient must notify its employees, contractors, or subrecipients that the prohibitions and restrictions of any internal 

confidentiality agreements inconsistent with paragraph (a) of this award provision are no longer in effect. 

(c) The prohibition in paragraph (a) of this award provision does not contravene requirements applicable to any other form issued 

by a Federal department or agency governing the nondisclosure of classified information. 

(d) If the Government determines that the recipient is not in compliance with this award provision, it: 

(1) Will prohibit the recipient's use of funds under this award, in accordance with sections 743, 744 of Division E of the 

Consolidated Appropriations Act, 2016, (Pub. L. 114-113) or any successor provision of law; and 

(2) May pursue other remedies available for the recipient's material failure to comply with award terms and conditions. 

23.0 PAPERWORK REDUCTION 

According to the Paperwork Reduction Act of 1995, an agency may not conduct or sponsor, and a person is not required to respond 

to a collection of information unless it displays a valid OMB control number. The valid OMB control number for this information 

collection is 0581-0240. The time required to complete this information collection is estimated to average 2 hours per response, 

including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and 

completing and reviewing the collection of information. USDA’s Nondiscrimination Statement (effective 2015). 

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In accordance with Federal civil rights law and U.S. Department of Agriculture (USDA) civil rights regulations and policies, the USDA, 

its Agencies, offices, and employees, and institutions participating in or administering USDA programs are prohibited from 

discriminating based on race, color, national origin, religion, sex, gender identity (including gender expression), sexual orientation, 

disability, age, marital status, family/parental status, income derived from a public assistance program, political beliefs, or reprisal 

or retaliation for prior civil rights activity, in any program or activity conducted or funded by USDA (not all bases apply to all 

programs). Remedies and complaint filing deadlines vary by program or incident. 

Persons with disabilities who require alternative means of communication for program information (e.g., Braille, large print, 

audiotape, American Sign Language, etc.) should contact the responsible Agency or USDA’s TARGET Center at (202) 720-2600 (voice 

and TTY) or contact USDA through the Federal Relay Service at (800) 877-8339. Additionally, program information may be made 

available in languages other than English. 

To file a program discrimination complaint, complete the USDA Program Discrimination Complaint Form, AD-3027, found online 

at http://www.ascr.usda.gov/complaint_filing_cust.html and at any USDA office or write a letter addressed to USDA and provide in 

the letter all of the information requested in the form. To request a copy of the complaint form, call (866) 632-9992. Submit your 

completed form or letter to USDA by: 

1) mail: U.S. Department of Agriculture Office of the Assistant Secretary for Civil Rights 1400 Independence Avenue, 

SW Washington, D.C. 20250-9410; 

2) fax: (202) 690-7442; or 

3) email: program.intake@usda.gov 

USDA is an equal opportunity provider, employer, and lender. 

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