Directive 201.1 

11/4/91 

 ASSISTANCE DOCUMENTS AND 

 MEMORANDUMS OF UNDERSTANDING 

 TABLE OF CONTENTS Page 

 I. PURPOSE .............................. 2 

 II. REPLACEMENT HIGHLIGHTS ............... 2 

 III. POLICY ............................... 2 

 IV. DEFINITIONS .......................... 2 

 V. AUTHORITY TO SIGN DOCUMENTS .......... 4 

 VI. RESPONSIBILITIES OF THE FEDERAL 

 ASSISTANCE OFFICER ................. 4 

 VII. CONDITIONS TO BE INCLUDED............. 4 

 VIII. PREPARATION AND PROCESSING ........... 11 

 IX. OVERSIGHT ............................ 17 

 ATTACHMENT 1 

 ASSISTANCE DOCUMENT (COOPERATIVE AGREEMENT 

 OR GRANT) 

 ATTACHMENT 2 

 MEMORANDUM OF UNDERSTANDING 

 I. PURPOSE This Directive states the policy, 

 responsibilities, and procedures for developing, reviewing, 

 and processing cooperative agreements, grants, and memorandums 

 of understanding (MOU's). 

 II. This Directive replaces AMS Directive 201.1, 

 REPLACEMENT dated 3/9/89. 

 HIGHLIGHTS 

 III. It is AMS policy to: 

 POLICY A. Develop assistance documents as defined in the Federal Grant 

 and Cooperative Agreement Act of 1977, 31 U.S.C. 6301-6308. 

 B. Comply with applicable provisions of the U.S. Department 

 of Agriculture's Uniform Federal Assistance Regulations, 

 7 CFR 3015 et seq. 

 C. Provide full and free competition, as feasible, among 

 potential recipients of project- type assistance agreements 

 such as research. 

 D. Prohibit the use of assistance documents that circumvent 

 procurement, property, fiscal or personnel policies and procedures. 

 E. Initiate the performance of a proposed 

 assistance document only after all necessary clearances 

 and signatures have been obtained. 

 IV. A. Assistance Document. As used in AMS, 

 DEFINITIONS a grant or cooperative agreement. 

 B. Confirmation. Notification to the recipient, as stated in 

 the duration clause of the original document, authorizing 

 continuance of the agreement for an additional fiscal year. 

 Agreements providing appropriated funds from year to year require 

 annual confirmation. 

 C. Contract. A legal instrument reflecting a relationship 

 between the Federal Government and a State or local government 

 or other recipient when the principal purpose is the acquisition, 

 by purchase, lease, or barter, of property or services for the 

 direct benefit or use of the Federal Government. 

 D. Cooperative Agreement. A legal instrument reflecting a 

 relationship between the Federal Government and a State or local 

 government or other recipient when (1) the principal purpose is 

 the transfer of money, property, services, or anything of value to 

 the State or local government or other recipient to accomplish a 

 public purpose of support or stimulation authorized by Federal 

 statute; and (2) substantial involvement is anticipated between the 

 Federal agency and the State or local government or other recipient 

 during performance of the contemplated activity. 

 E. Cooperator or Grantee. A State or local government, 

 federally recognized Indian tribe, university, nonprofit, 

 for profit, or other organization that receives assistance or 

 services from AMS. 

 F. Grant Agreement. A legal instrument reflecting a relationship 

 between the Federal Government and a State or local government or 

 other recipient when (1) the principal purpose of the relationship 

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 is the transfer of money, property, services, or anything of value 

 to the State or local government or other recipient to accomplish a 

 public purpose of support or stimulation authorized by Federal statute; 

 and (2) no substantial involvement is anticipated between the Federal 

 agency and the State or local government or other recipient during 

 performance of the activity. 

 G. MOU. A documented plan between two or more Federal agencies or 

 between a Federal agency and one or more non-Federal parties for 

 carrying out their separate activities in a project of mutual interest. 

 Each party directs its own activities and uses its own resources. 

 An MOU is not a fund obligation document since it does not directly 

 involve a financial assistance or procurement transaction. 

 H. Nonprofit Organization. A public or private organization 

 established by State charter to perform specialized functions or 

 services for the benefit of all or part of the public. It provides 

 functions or services without charge or at cost. 

 

 I. Renewal. An amendment to an assistance 

 document that extends the duration of the agreement beyond the 

 expiration date, usually for another fiscal year. It is a more 

 purposeful action than a confirmation and usually changes the original 

 agreement's work requirements and/or assistance provided. 

 J. Substantial Involvement. Federal influence that is more than 

 purely advisory, regardless of its frequency, and that directly affects 

 the conduct or results of an assisted project. 

 V. The authority to sign documents has been 

 AUTHORITY TO delegated to the following officials: 

 SIGN 

 DOCUMENTS A. Deputy Administrator, Marketing Programs. New documents, Revisions, 

 Supplements, Amendments, Renewals, Suspensions, and Terminations. 

 B. Federal Assistance Officer (FAO). Confirmations. 

 C. Designated Leaders of the Assistance Project or Their Authorized 

 Representatives. Correspondence documenting mutual agreement on 

 administrative details. 

 VI. A. To determine the appropriate type of 

 RESPONSI- document and method of soliciting competing proposals. 

 BILITIES OF 

 THE FAO 

 B. To assure that the document complies with existing laws, 

 regulations and procedures. 

 C. To aid in preparation. 

 D. To number documents as required. 

 E. To assist in negotiations. 

 F. To assist in resolving audit findings. 

 G. To report Federal assistance activities to other agencies and 

 authorized petitioners. 

 VII. Certain conditions and standard paragraphs must be 

 CONDITIONS TO included, depending upon the type of 

 BE INCLUDED document, type of recipient, and the work to be done. 

 Some are required by the acts under which AMS is operating. 

 Others cover fixed legal requirements and general policies of the 

 Federal Government and the Department. The conditions outlined 

 below do not include all conditions that might arise, nor would 

 all of them be included in any one assistance document. 

 A. Federal Involvement. Each cooperative agreement shall 

 include the type and extent of Federal involvement causing it 

 to be different from a grant. 

 B. Employment Covering Any Persons Employed as a Result of an 

 Assistance Agreement. For unusual circumstances, contact the 

 Classification Branch, Personnel Division, for information, review, 

 and approval. 

 C. Financial Arrangements. Include provisions as applicable, for: 

 1. Financial contributions and budgets. 

 2. The handling of financial contributions. 

 a. Project-type agreements such as research. 

 Recipients of this type of agreement shall submit 

 to AMS a properly completed Form SF-270, Request 

 for Advance or Reimbursement, at least quarterly. 

 This form will not be required, however, when Treasury 

 check payments are made to the grantee automatically 

 on a predetermined basis, as stated in the agreement, if 

 the money is needed at such predetermined intervals. 

 Agreements that contemplate an advance of funds should 

 include a provision for final accounting of funds and 

 reimbursement of any unexpended balance. Advances shall be 

 limited to the minimum amounts needed to meet current 

 disbursement needs and shall be scheduled so the funds are 

 available to the recipient as close as possible to the actual 

 disbursements by the recipient for program costs. 

 b. Trust Fund agreements. Indicate the party responsible 

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 for collecting fees or funds, the use of and accounting 

 methods for such fees or funds, and the process of disposing 

 of such fees or funds upon termination of agreement. 

 (1) Methods of accounting for State trust funds should 

 conform to the following paragraph: 

 "The State Agency shall deposit fees and expenses collected 

 for work performed under this agreement in a State trust 

 fund and maintain records of such collections and disbursements 

 therefrom. These records shall be accessible to the Federal 

 Agency. The State Agency shall furnish the Federal Agency 

 with an annual report of the fees collected and the cost of 

 the work conducted hereunder, whether paid from fees or from 

 appropriations. Audits shall be conducted as provided by 

 applicable regulations of the Federal Agency, and shall 

 cover the terms and provisions of this agreement." 

 (2) Disposition of trust fund amounts upon termination of 

 the agreement should conform to the following paragraphs: 

 (a) Federal Trust Fund. "If this agreement is terminated, 

 user fees from the State deposited to the credit of the 

 Federal trust fund will continue to be available for 

 disbursement as provided for in this agreement, and any 

 remaining unobligated balance and any assets purchased from 

 such account shall be available for use in any related 

 inspection and grading program of the Federal Agency." 

 (b) State Trust Fund. "If this agreement is terminated, 

 all user fees and assets acquired from such fees held by 

 the State that were acquired under this agreement, except 

 a reasonable amount necessary to settle outstanding 

 obligations, as documented by the State and agreed to by 

 the Federal Agency, will be immediately transferred to any 

 succeeding entity with which AMS has established a 

 cooperative agreement. If no agreement is entered 

 into with such succeeding entity and inspection services 

 are then being provided by the Federal Agency or by another 

 department or agency within the Federal Government, all 

 such funds or property will immediately revert to the 

 Federal Agency for disposition into a Federal trust fund 

 account to be made available for use in any related 

 inspection and grading program of the Federal Agency. 

 If there is no Federal inspection provided in the State 

 by the Federal Agency or by another department or agency 

 within the Federal Government within one year from the 

 termination of this agreement, all remaining funds, 

 interest accrued and/or property, less reasonable 

 administrative costs, as documented by the State and 

 agreed to by the Federal Agency, will be promptly distributed 

 by the State on a pro-rata basis to persons or organizations 

 who received Federal-State inspection service from the State 

 within three years prior to the termination of this agreement." 

 3. Agreements with parties other than States, providing for 

 payments to AMS, shall contain the following: 

 "Payments due the Federal Agency must be received not later 

 than the date specified on the invoice. Payments received 

 after that date will be subject to a late payment charge at 

 a rate specified by USDA." 

 D. General Conditions. 

 1. Assistance agreements are subject to USDA's Federal Assistance 

 Regulations, 7 CFR 3015 et seq. These regulations incorporate the 

 Office of Management and Budget (OMB) policy guidelines published 

 as OMB circulars that standardize the administration of assistance 

 projects and specify the principles for determining allowable costs. 

 2. Most assistance documents except as noted in VII.D.3. below 

 will contain the following paragraphs: 

 a. "No member of Congress or Resident Commissioner will be 

 admitted to any share or part of this Agreement or to any benefit 

 to arise therefrom, unless it be made with a corporation for its 

 general benefit. 

 b. "All aspects of this agreement shall be executed according to 

 applicable parts of USDA's Uniform Federal Assistance Regulations 

 (7 CFR 3015 et seq.) or as they may be later revised, and 

 successive published regulations as appropriate, hereby 

 incorporated by reference and made a part of this agreement. 

 The recipient confirms that it understands and is bound by the 

 above regulations, a copy of which is attached. 

 c. "The following are attached and made a part of this agreement: 

 (1) "Attachment 1, Equal Opportunity Clause. 

 (2) "Standard Form 424B, 

 Assurances - Non-Construction Programs. 

 (3) "Form AD-1047, Certification Regarding Debarment, Suspension, 

 and Other Responsibility Matters - Primary Covered Transactions. 

 (4) "Form AD-1048, Certification Regarding Debarment, Suspension, 

 Ineligibility and Voluntary Exclusion - Lower Tier Covered 

 Transactions. NOTE: The recipient is responsible for obtaining 

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 the signatures and retaining the certificates, if warranted, 

 from lower tier recipients or contractors as defined in 7 CFR 

 3017. 

 (5) "Form AD-1049, Certification Regarding Drug-Free Workplace 

 requirements (Grants) Alternative I - For Grantees Other Than 

 Individuals. 

 (6) "Certification Regarding Lobbying. NOTE: The appropriate 

 lobbying disclosure report form, SF-111, is available from the 

 Federal Agency, if applicable." 

 3. Exceptions to the above are as follows: 

 a. Standard Form 424B, Assurances - Non-Construction Programs, 

 need not be included as part of the agreement for project-type 

 agreements, such as research, because this form is required as 

 part of the pre-award requirements. 

 b. Form AD-1048 certification is not required for programs of a 

 regulatory or mandatory nature, user-fee supported programs, 

 and market news programs not receiving Federal money. 

 c. Certification Regarding Lobbying is not required from 

 recipients of a Federal contract, grant, or cooperative 

 agreement of $100,000 or less. 

 4. Assistance agreements awarded to universities, non-profit 

 organizations, and small business firms for performing experimental 

 research and development work shall, with certain exceptions, 

 contain the Patent Rights Clause specified in 37 CFR 401. 

 E. Administrative Arrangements. Include 

 provisions in the agreement, as applicable, for: 

 1. Establishing ownership and responsibility for maintenance of 

 equipment, if any, and disposition of equipment upon termination of 

 the agreement. 

 a. Where Federal information systems are involved, the signatory 

 parties shall (1) comply with all aspects of Agency and 

 Departmental technical approval and procurement procedures and 

 policies; and (2) comply with all Federal and Departmental 

 regulations and policies for the loan or disposal of software and 

 hardware. This includes those for sensitive property 

 accountability and inventory tracking mechanisms. 

 b. Where information systems are 

 involved, security measures shall be taken to protect Federal 

 investments in hardware and software, including, but not limited 

 to compliance with Federal copyright law, use of anti-virus software, 

 use of passwords, and limited system access. 

 2. Furnishing space, utilities, supplies and so forth. 

 3. Ownership, use, and disposition of commodities, if any. 

 F. Supplementary Documentation. If the agreement states that any condition 

 is to be made by mutual agreement, such agreement shall be in writing and 

 shall refer to the original document. A copy of any mutually arrived at 

 understanding or correspondence relating to it shall be sent to the FAO, 

 who shall be responsible for maintaining the AMS file and for sending 

 copies to other management Divisions concerned. 

 G. Duration of the Document. Specify the period 

 the agreement will remain in effect and include provisions, 

 as applicable, for continuing or terminating the agreement. 

 Provisions for continuing the agreement depend upon whether 

 the work is financed by trust funds or by appropriated funds, 

 and if by appropriated funds, whether it is a cooperative agreement 

 or a grant. 

 1. Trust Funds. The duration may be definite or indefinite. 

 Agreements financed from user-fee funded accounts may continue 

 in force without confirmation or renewal by use of a paragraph 

 such as the following: 

 "Subject to the availability of funds in the Federal trust 

 fund account, and continuation of the necessary legal 

 authority, this agreement shall continue in force unless 

 amended or terminated by mutual consent of the parties in 

 writing, or terminated by either party upon ____ days notice 

 in writing." 

 2. Appropriated Funds. These funds can be obligated only in the 

 year they are appropriated. 

 a. Cooperative Agreement. 

 (1) When agreements require an obligation of funds 

 only in the year the agreement was signed, such as 

 in research agreements for specified periods, the 

 agreement may continue (within statutory limitations) 

 without renewal or confirmation by use of a paragraph 

 such as the following: 

 "Subject to the necessary authority and funds, this 

 agreement shall continue in force until __________, 19__, 

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 unless amended or terminated by mutual consent of the 

 parties in writing, or terminated by either party 

 upon ____ days notice in writing." 

 (2) When agreements require an obligation of funds during 

 each successive year, as with regulatory and Market 

 News-type agreements, and with research-type agreements 

 where additional fund requirements are anticipated, the 

 duration is limited to 1 fiscal year subject to renewal or 

 confirmation by use of a paragraph such as the following: 

 "This agreement shall continue in force through 

 September 30, 19__, and as long thereafter as Congress 

 shall provide the necessary authority and funds, subject 

 to annual confirmation (or renewal) by a duly authorized 

 officer of the United States Department of Agriculture, 

 provided, however, that this agreement may be amended or 

 terminated by mutual consent of the parties in writing, 

 or terminated by either party upon ____ days notice in 

 writing." 

 b. Grant. When agreements require an obligation of funds 

 only in the year the grant was signed, such as in 

 research-type grants for specified periods, the agreement 

 may continue (within statutory limitations) without renewal 

 or confirmation by use of a paragraph such as the following: 

 "This agreement shall continue in force until __________, 

 19__, unless amended or terminated by mutual consent of 

 the parties in writing, or terminated by either party 

 upon ____ days notice in writing." 

 3. MOU's. The duration of MOU's may be definite or indefinite. 

 A paragraph such as the following may be used: 

 "This agreement shall continue in force indefinitely 

 (or until...). It may be amended or terminated by mutual 

 consent, or terminated by either party upon ____ days notice 

 in writing." 

 VIII. A. Assistance Documents, MOU's, and Revisions 

 PREPARATION and Amendments Thereto. 

 AND PROCESSING 

 1. Preparation. 

 a. Responsibility for Preparation. 

 (1) When the work to be done is within one Division, that 

 Division shall prepare the document. The FAO is available 

 for consultation and assistance. 

 (2) When the work to be done is within more than one 

 Division, the FAO, in collaboration with the Divisions 

 concerned, shall coordinate information for and assist 

 as needed in preparing the document. 

 b. Format and Contents. 

 (1) Assistance Documents and MOU's. It is not practical 

 to attempt to outline in detail or to provide samples of 

 every variation of assistance document. However, 

 Attachment 1, Form AMS-20, for agreements with State 

 agencies (Form AMS-20-1 should be used for agreements with 

 nonState organizations), illustrates the format and 

 subdivisions that are generally included in assistance 

 documents. A grant format is identical to that of a 

 cooperative agreement, but lacks the degree of Federal 

 involvement in the project. Program requirements are to 

 be clearly and adequately defined or should include by 

 reference any separate proposals or written understanding 

 between the parties involved. General conditions and 

 standard paragraphs as outlined in Section VII. shall be 

 included as applicable. Attachment 2 illustrates the format 

 and the subdivisions generally included in MOU's. 

 (2) Application Forms. Assistance proposals that are 

 funded as projects, such as research, shall be submitted 

 with the following: 

 (a) SF-424, Application for Federal Assistance. This form 

 must be completely filled out. Block 15, Estimated 

 Funding, must correctly reflect the final funding 

 amount. 

 (b) SF-424B, Assurances - Nonconstruction Programs. 

 2. Clearances. 

 a. The initiating Division shall: 

 (1) Prepare an original and one copy 

 of Form AMS-180, Request for Clearance of 

 Cooperative Document, and obtain any necessary 

 internal Division signatures in the spaces 

 provided on the form. 

 (2) Forward the document to be cleared in original 

 and four copies to the FAO, together with the 

 original and one copy of Form AMS-180. If there is 

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 more than one recipient, add an extra copy of the 

 document for each, with provision for additional 

 signatures. (Divisions should submit for review by 

 electronic mail a preliminary draft of the proposed 

 document in MS-DOS WordPerfect format, version 5.0 or 

 greater. This will eliminate unnecessary retyping if 

 changes are necessary.) Assistance proposals that are 

 funded as projects, such as research, should include 

 the documentation discussed in section VIII.A.1.b.(2), 

 above. 

 b. The FAO shall review the proposed document; assure that 

 the recipient has not been debarred, suspended, or under 

 criminal indictment; and discuss any required or recommended 

 changes with the initiating Division. When the document is 

 in order, the FAO shall: 

 1) Confirm the correctness of all changes and obtain 

 clearances within AMS, as required, by forwarding a 

 copy of the document and a copy of AMS-180 requesting 

 clearance to the: 

 (a) Personnel Division, if necessary, for review of 

 personnel arrangements. 

 (b) Information Resources Management Division 

 (IRMD), if necessary, for technical review on 

 projects subject to IRMD's normal technical approval 

 process. 

 (c) Deputy Administrator for program review. 

 (d) Appropriate offices in the Department for 

 clearances as required. 

 (2) Coordinate any suggestions received from AMS and 

 Department offices, contacting the applicable Division about 

 any changes. 

 (3) Return the original and three copies, with a copy 

 for each additional signatory if more than one, of the 

 cleared document to the initiating Division, retaining 

 all other copies of the document in a pending file. The 

 appropriate certification forms to be signed will be attached 

 to the back of the original agreement by the FAO. 

 3. Completion. 

 a. Signature and Numbering. 

 (1) Upon receipt of the cleared document from the 

 FAO, the initiating Division shall: 

 (a) Send all copies of the document and certification 

 forms to the recipient(s) to be signed and returned. 

 (Documents may be signed first by AMS when State 

 regulations require it or it is necessary to expedite it.) 

 (b) Forward all signed copies to the FAO. 

 (2) The FAO shall: 

 (a) Obtain signature for AMS. 

 (b) Assign a number to the document. 

 (c) Return signed copies of the document to the 

 initiating Division. 

 b. Distribution. 

 (1) Upon receipt of the signed copies from the FAO, 

 the initiating Division shall: 

 (a) Send a copy to each recipient. 

 (b) Retain one copy for Division file. 

 (2) The FAO shall file two signed copies in the Federal 

 Assistance Office of the Budget Estimates and Allotments 

 Branch, FMD. (The signed copies, the original copy of 

 Form AMS-180 on which clearances are indicated, the 

 signed certifications, copies of all pertinent budgetary 

 information, and correspondence will constitute the 

 official AMS file.) 

 4. Timeliness. 

 a. Assistance documents, including revisions and 

 amendments, requiring the obligation of appropriated 

 funds in the present fiscal year shall be: 

 (1) Submitted to the FAO for initial approval by 

 August 1. 

 (2) Signed by the recipient and resubmitted to 

 the FAO by September 15 for final AMS signature. 

 b. Revisions and amendments to 

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 agreements, including renewals and extensions, 

 shall be cleared and signed before the expiration 

 of the agreement. They cannot be added to expired 

 agreements. 

 B. Renewals. In July of each year, the FAO shall send each Division 

 a list of its assistance documents, including those that require 

 renewal. A renewal is accomplished as an amendment to the original 

 document. The procedure and time constraints are the same as outlined 

 in Section VIII.A., above. 

 C. Confirmations. In July of each year, the FAO 

 shall send each Division a list of each agreement that 

 provides for extension by confirmation. 

 1. Clearance. The Division Director shall: 

 (a) Initial the list, noting any 

 agreements not to be confirmed and adding any 

 agreements needing confirmation, but not on thE 

 list. 

 (b) Return the list to the FAO by August 15. 

 2. Completion. The FAO shall prepare, sign, 

 and distribute confirmations as follows: 

 (a) One copy to each recipient. 

 (b) One copy to the Division. 

 (c) One copy to the AMS file. 

 D. Terminations, Suspensions, and Closeouts. 

 1. Terminations. Terminations shall be made according to the 

 duration paragraph of the document. If the document requires 

 annual confirmation or renewal, failure to do so automatically 

 terminates the agreement. 

 a. Termination for Convenience. AMS may cancel agreements 

 in whole or in part upon agreement of both parties. 

 b. Termination for Cause. AMS may 

 terminate any assistance agreement, in whole or 

 in part, when the recipient has not complied with 

 its conditions. AMS shall notify the recipient 

 in writing, giving reasons for terminating and the 

 effective date. 

 c. Procedure. Any termination or 

 suspension action will be by letter signed by 

 the appropriate Deputy Administrator. 

 (1) If AMS is terminating the 

 agreement: 

 (a) The Division shall prepare a letter to 

 the recipient and send it to the FAO. 

 (b) The FAO shall obtain a 

 signature for AMS. 

 (2) If the recipient is terminating the agreement, 

 the Division shall send a copy of the letter 

 to the FAO. 

 (3) The FAO shall send copies of all 

 correspondence terminating an assistance endeavor, 

 whether from AMS or recipient, to the same 

 Divisions that received copies of the assistance 

 document concerned. 

 2. Suspension. Assistance may be suspended pending corrective 

 action on the part of the recipient. AMS shall notify the 

 recipient in writing of the effective date of the suspension, 

 the reasons, and the corrective action required. 

 3. Closeout. Upon termination or completion 

 of an assistance agreement: 

 a. The Division shall make prompt payments to the 

 recipient for allowable costs. 

 b. The recipient shall immediately refund 

 to AMS any balance of unobligated funds advanced, 

 including late payment interest, if appropriate. 

 Disposition of funds remaining in trust funds will 

 be specifically addressed in the agreement 

 (Section VII.C.2.b.(2)). 

 c. AMS shall obtain from the recipient within 90 days 

 after the date of completion of the project a Financial 

 Status Report (SF-269), a performance report and other 

 reports required as a condition of the agreement. 

 Extensions may be granted upon request. 

 d. AMS shall make a settlement for any upward or downward 

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 adjustment to the Federal share of costs after the above 

 reports are received. 

 e. The recipient shall account for any property acquired 

 with Federal funds or received from the Federal Government 

 according to 7 CFR 3015, Subpart R, or 7 CFR 3016, 

 Subpart C. 

 f. If a final audit has not been 

 performed before the closeout, AMS shall retain 

 the right to recover an appropriate amount after 

 considering the recommendations on disallowed 

 costs resulting from the audit. 

 IX. A. Each Division shall: 

 OVERSIGHT 

 1. Make periodic inspections and followups to 

 assure that work is conducted according to the terms 

 of the document. 

 2. Monitor financial reports, paying 

 particular attention to all costs submitted as detailed 

 in 7 CFR 3015, Subpart T -- Cost Principles. 

 3. Contact the FAO promptly if corrective 

 action is necessary. 

 4. Assist FMD personnel in the resolution and closure of 

 audit findings. 

 5. Regularly review and revise existing documents that no 

 longer reflect present conditions, organizational structures 

 and rules. 

 B. The FAO shall be responsible for interpreting and applying 

 Federal guidance and for initiating any corrective actions, 

 including resolving audit findings. 

 L. P. Massaro 

 Deputy Administrator, Management 

 

 

Attachment 1 

AMS Directive 201.1 

11/4/91 

?-----------------------------------------------------------------------? 

 Agreement No. 12-25-A- 

 COOPERATIVE AGREEMENT 

 between the 

 AGRICULTURAL MARKETING SERVICE 

 UNITED STATES DEPARTMENT OF AGRICULTURE 

 WASHINGTON, D.C. 20250 

 (hereinafter called the Federal Agency) 

 and the 

 (Organization Name) 

 (City, State & Zip Code) 

 (hereinafter called the State Agency) 

1. Title of Agreement: 

2. Objective: 

3. Statement of Work: This cooperative agreement shall be carried out by the 

organizational units or officials of the Federal Agency and the Cooperator in 

the manner and subject to the conditions provided in the Statement of Work, Form 

AMS-20-2, attached hereto and made a part of this agreement. 

4. Legal Authority: 

5. Revision: (N/A if this is a new agreement) 

6. Effective Date: 

7. Approvals: The signatories hereby certify that they have authority to 

enter into said cooperative agreement. 

 This agreement is hereby approved for the State Agency. 

 Done at_____________________on__________ 

 (City and State) (Date) 

 

 ____________________________ 

 Signature 

 ____________________________ 

 Title 

 This agreement is hereby approved for the Federal Agency. 

 Done at Washington, D.C. on ____________ 

 (Date) 

 ___________________________________________ 

 Administrator, Agricultural Marketing Service 

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?------------------------------------------------------------------------? 

Form AMS-20 (4-2-73) 

 

 

 

 Page 2 of 

?--------------------------------------------------------------------------? 

STATEMENT OF WORK - COOPERATIVE AGREEMENT NO 12-25-A- 

?--------------------------------------------------------------------------? 

 This STATEMENT OF WORK is part of the Cooperative Agreement between the 

 Agricultural Marketing Service, United States Department of Agriculture 

 and the effective having the title of 

I Introduction - Federal and State employees conducting activities under terms of this 

agreement shall be as follows: 

 A. For the Federal Agency - (Insert title of the Division director in 

 AMS responsible for the project; state what Federal employees are to be 

 used in carrying out the work; and indicate any conditions.) 

 B. For the State Agency - (Insert title of the head of the State Agency; 

 state which State Agency's employees are to be used in carrying out the 

 work; and indicate any conditions. A principal investigator may be 

 designated by name here.) 

II Responsibilities 

(State in three main subdivisions under this heading what the Federal Agency 

agrees to do, what the State Agency agrees to do, and what the parties mutually 

agree to do. State what each will furnish, such as facilities, supplies, 

monetary contributions and personnel. Indicate how the project or program is 

to be managed, the degree of Federal involvement, where the work will be done, 

and from where the work will be directed. Finally, include the financial 

arrangements, standard paragraphs, additional conditions, as applicable, and 

duration of the agreement.) 

 A. The Federal Agency will: 

 B. The State Agency will: 

 C. It is mutually understood and agreed that: 

 o "All aspects of this agreement shall be executed according to 

 all applicable parts of USDA's Uniform Federal Assistance 

 Regulations (7 CFR 3015 et seq) or as they may be later 

 revised, and successive published regulations as appropriate, 

 hereby incorporated by reference and made a part of this 

 agreement. The cooperator confirms that it understands and 

 is bound by the above regulations, a copy of which is attached. 

 o "The following are attached and made a part of this agreement: 

 - Attachment 1, Equal Opportunity Clause. 

 - Standard Form 424B, Assurances - Non-Construction Programs. 

 - Form AD-1047, Certification Regarding Debarment, 

 Suspension, and Other Responsibility Matters - Primary 

 Covered Transactions. 

 - Form AD-1048, Certification Regarding Debarment, 

 Suspension, Ineligibility and Voluntary Exclusion - 

 Lower Tier Covered Transactions. Note: The recipient 

 is responsible for obtaining the signatures and 

 retaining the certificates, if warranted, from lower 

 tier recipients or contractors as defined in 7 CFR 3017. 

 - Form AD-1049, Certification Regarding Drug-Free 

 Workplace Requirements (Grants) Alternative I - For 

 Grantees Other Than Individuals. 

?----------------------------------------------------------------------------? 

Form AMS-20-2 (4-2-73) 

 Page 3 of 

?----------------------------------------------------------------------------? 

 CONTINUATION SHEET 

?----------------------------------------------------------------------------? 

- Certification Regarding Lobbying. 

 Note: The appropriate lobbying disclosure report form, 

SF-LLL, is available from the Federal Agency if applicable." 

+----------------------------------------------------------------------------+ 

¦Exceptions to the above: ¦ 

¦ ¦ 

¦1. Standard Form 424B need not be included in project type agreements ¦ ¦because it is a pre-award requirement. 

¦2. Form AD-1048 certification is not required for programs of a regulatory ¦ ¦or mandatory nature, user-fee supported programs, and marke

¦ ¦ 

¦3. Certification Regarding Lobbying is not required from recipients of a ¦ ¦Federal contract, grant, or cooperative agreement of $100,0

+----------------------------------------------------------------------------+ 

Directive 201.1 - Assistance Documents and Memorandums Of Understanding Page 9 of 11

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 o "No member of Congress or resident commissioner shall be admitted to any share or part of this agreement or to

?----------------------------------------------------------------------------? 

Form AMS-20-4 (4-2-73) 

Attachment 2 

AMS Directive 201.1 

11/4/91 

 MEMORANDUM OF UNDERSTANDING 

 Between the 

 (Insert Name of Cooperator) 

 and the 

 Agricultural Marketing Service 

 United States Department of Agriculture 

NAME OF PROJECT.......... (Short title) 

OBJECTIVE................ (Summarize concisely the purpose of the memorandum 

establishing mutuality of interest) 

LEGAL AUTHORITY.......... (Identify the Act(s) authorizing the Federal 

part of the program. If the Cooperator is a State Agency, add the words, 

"...and applicable laws of the State of________." If the Cooperator is 

another organization, it should reference its legal authority.) 

REVISION................. (If this is a revision of a previous Memorandum 

of Understanding, include the following reference to that understanding: 

 "This is a revision of and shall supersede 

 Memorandum of Understanding No. effective 

 (date), between the (Cooperator Organization) and 

 the Agricultural Marketing Service)." 

EFFECTIVE DATE........... (Date agreement is entered into) 

ORGANIZATION............. (For AMS and each cooperator, insert the 

project leader's position title, employees used to carry out the work, and any conditions) 

LOCATION................. (Where work is to be done) 

RESPONSIBILITIES......... (State in three main subdivisions (1) 

what the cooperator(s) agrees to do, (2) what AMS agrees to do, and (3) 

what the parties mutually agree upon. Establish what each will furnish, 

such as facilities, personnel and so forth. Include conditions of employment 

and standard paragraphs as applicable.) 

BASIS OF COOPERATION...... (Insert the following: 

 "This Memorandum of Understanding defines in 

 general terms the basis on which the parties 

 concerned will cooperate, and does not constitute 

 a financial obligation to serve as a basis for 

 expenditures. Each party will handle and expend 

 its own funds. Any and all expenditures from 

 Federal funds in the Department of Agriculture 

 made in conformity with the plans outlined in the 

 Memorandum of Understanding must be in accord with 

 Department rules and regulations and in each instance 

 based upon appropriate finance papers. Expenditures 

 made by any other cooperator will be in accord 

 with its rules and regulations." 

 "The responsibilities assumed by the 

 cooperating parties under this 

 Memorandum of Understanding are 

 contingent upon funds being available 

 from which expenditures legally 

 may be met.") 

MEMBER OF CONGRESS CLAUSE.. (Insert the standard clause as follows: 

 "No member of Congress or resident commissioner shall 

 be admitted to any share or part of this agreement or 

 to any benefit to arise therefrom, unless it be made 

 with a corporation for its general benefit.") 

DURATION................... (Provide for duration of the document. Wording 

similar to the following may be used: 

 "This agreement shall continue in 

 force indefinitely (or until...). It 

 may be amended or terminated by mutual 

 consent of the parties in writing. It 

Directive 201.1 - Assistance Documents and Memorandums Of Understanding Page 10 of 11

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 may be terminated by either party 

 upon _____ days' notice in writing to 

 the other party.") 

This agreement is hereby approved for the Federal Agency. 

Done at Washington, D.C. on ______________ 

 (Date) 

 ____________________________________________ 

 Administrator, Agricultural Marketing Service 

This agreement is hereby approved for the (Cooperator Organization) 

Done at (Location) on ______________ 

 (Date) 

 ___________________________________________ 

 (Insert title of signatory and name of 

 cooperating organization) 

 

Distribution: G05 

Responsible Office: C&A-BEA 

 

 

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