OMB No. 0581-0240

Agricultural Marketing Service (AMS)

Grants Division

General Terms and Conditions

Effective Date: Updated on September 2020
TABLE OF CONTENTS

1.0 OVERVIEW OF GENERAL TERMS AND CONDITIONS................................................................................................................ 4

1.1 Common Terms and Acronyms........................................................................................................................................................... 4

1.2 Order of Precedence........................................................................................................................................................................... 4

1.3 Definitions........................................................................................................................................................................................... 4

2.0 FINANCIAL MANAGEMENT ........................................................................................................................................................ 5

2.1 Audit Requirements............................................................................................................................................................................ 6

2.2 Cost Sharing or Matching.................................................................................................................................................................... 6

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

4.0 PAYMENTS ................................................................................................................................................................................ 7

4.1 Types of Payments.............................................................................................................................................................................. 7

4.2 How to Request Payments .................................................................................................................................................................. 7

4.3 Payment Source Documentation and Other Requirements............................................................................................................... 7

4.4 Timely Drawdown and Use of Grant Funds......................................................................................................................................... 8

5.0 INTEREST EARNED AND ADVANCES OF GRANTS FUNDS.............................................................................................................. 8

6.0 PROGRAM INCOME ................................................................................................................................................................... 8

7.0 PROCUREMENTS........................................................................................................................................................................ 8

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

9.0 CHANGES REQUIRING PRIOR WRITTEN APPROVAL................................................................................................................... 17

9.1 Change in Key Personnel/Time Devoted to the Project.................................................................................................................... 17

9.2 Change in Scope or Objectives.......................................................................................................................................................... 17

9.3 One-TimeExtension .......................................................................................................................................................................... 17

9.4 BudgetChange .................................................................................................................................................................................. 18

9.5 Pre-Award Costs................................................................................................................................................................................ 18

9.6 Contracting or Subawarding for Activities Central to the Award’s Purpose(s)................................................................................... 18

9.7 Specific Allowable Costs Prior Approvals........................................................................................................................................... 19

9.8 Changesto Recipient Name or Address............................................................................................................................................. 19

9.9 Cost Share or Match – Changes in the Amount................................................................................................................................. 19

10.0 PERFORMANCE AND FINANCIAL REPORTS ............................................................................................................................. 20

10.1 Interim Performance and Financial Reports.................................................................................................................................... 20

10.2 Final Performance and Financial Reports ........................................................................................................................................ 20

10.3 Review of Performance and Financial Reports................................................................................................................................ 20

10.4 Public Access to Performance Reports and Information on Report Content................................................................................... 20

10.5 Disparaging Language and Protected PII ......................................................................................................................................... 20

10.6 OverdueReports ............................................................................................................................................................................. 20

11.0 ACKNOWLEDGEMENT OF SUPPORT ....................................................................................................................................... 21

12.0 PROPERTY MANAGEMENT..................................................................................................................................................... 21

13.0 ADMINISTRATIVE AND NATIONAL POLICY REQUIREMENTS .............................................................................................. 22

14.0 CLOSEOUT.............................................................................................................................................................................. 23

15.0 RECORD RETENTION.............................................................................................................................................................. 24

16.0 ACCESS TO RECORDS........................................................................................................................................................... 24

17.0 REMEDIES FOR NONCOMPLIANCE.......................................................................................................................................... 24

17.1 Disallow Costs................................................................................................................................................................................. 24

17.2 Withdrawal of Authorized Personnel Approval .............................................................................................................................. 24

17.3 Withholding of Payments................................................................................................................................................................ 24

17.4 Withholding of Support................................................................................................................................................................... 25

17.5 Suspension or Termination............................................................................................................................................................. 25

17.6 Special Conditionsfor High-Risk Recipients..................................................................................................................................... 25

18.0 SITES VISITS ........................................................................................................................................................................... 25

19.0 APPEALS................................................................................................................................................................................ 25

20.0 LIMIT OF FEDERAL LIABILITY .................................................................................................................................................. 25

21.0 FRAUD, WASTE, AND ABUSE.................................................................................................................................................. 25

22.0 PROHIBITION OF CONFIDENTIALITY AGREEMENTS ................................................................................................................. 26

23.0 PAPERWORK REDUCTION ...................................................................................................................................................... 26

24.0 NONDISCRIMINATION STATEMENT........................................................................................................................................ 26
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1.0 OVERVIEW OF GENERAL TERMS AND CONDITIONS

The Agricultural Marketing Service (AMS) Grants Division general terms and conditions apply to all AMS grant agreements and provide 

the requirements for a recipient’s grant. The general terms and conditions are determined by statutory, regulatory, and agency 

requirements, as well as the administrative policies. By accepting a grant agreement with AMS, recipients accept responsibility for 

all applicable terms and conditions. Failure to comply may result in actions described in section 17.0 Remedies for Noncompliance.

AMS uses USDA’s ezFedGrants online grants and agreements management system. AMS grant recipients must register and use the 

system to submit all applicable grant related documents. For registration instructions, visit the ezFedGrants home page or use the 

onboarding reference.

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 to manage the award.

1.1 Common Terms and Acronyms

Term/Acronym Meaning

ACH Automated Clearing House

AMS Agricultural Marketing Service

AOR Authorized Organization Representative

CFDA Catalog of Federal Domestic Assistance

CFR Code of Federal Regulations

DUNS Data Universal Numbering System

EFT Electronic Fund Transfer

ezFedGrants USDA’s Grants and Agreements Management System

FAIN Federal Award Identification Number; also known asthe Grant Agreement Number

GAAP Generally Accepted Accounting Principles

GAGAS Generally Accepted Government Auditing Standards

GSA General Services Administration

OMB Office of Management and Budget

PMS Payment Management System of Department of Health and Human Services

Protected PII Protected Personally Identifiable Information

SAM System for Award Management (SAM.gov)

SF Standard Form

USDA United States Department of Agriculture

1.2 Order of Precedence

If there is inconsistency between award provisions, AMS will resolve the issue 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

AMS aligns its grant term definitions to the maximum extent possible with the Uniform Administrative Requirements, Cost Principles, 

and Audit Requirements for Federal Awards (2 CFR § 200). Select definitions referenced in this document are highlighted below:

• Cost sharing or matching (2 CFR § 200.29) means the portion of project costs not paid by Federal funds.

• Federal award (2 CFR § 200.38) means the grant agreement, cooperative agreement, other agreement for assistance, or the 

cost-reimbursement contract awarded under the Federal Acquisition Regulations setting forth these terms and conditions.
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• Non-Federal entity (2 CFR § 200.69) means a state, local government, Indian tribe, institution of higher education, or nonprofit 

organization that carries out the award as a recipient or subrecipient. These award terms are applicable to non-Federal 

entities.

• Period of Performance (2 CFR § 200.77) 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.

• Personally Identifiable Information (PII) (2 CFR § 200.79) means 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.

• Program income (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.

• Recipient (2 CFR § 200.86) 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.

• Subaward (2 CFR § 200.92) means an award provided by a pass-through entity to a subrecipient for the subrecipient to carry 

out part of a Federal award received by the pass-through entity. It does not include payments to contractors or to individuals 

who are beneficiaries of a Federal program. A subaward may be provided through any form of legal agreement, including a 

contract.

• Subrecipient (2 CFR § 200.93) means a non-Federal entity that receives a subaward from a pass-through entity to carry out 

part of a Federal program; but does not include an individual that is a beneficiary of such program.

• Unrecovered indirect cost (2 CFR § 200.306(c)) 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.

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 a recipient’s financial management system is integral to their ability to account for grant expenditures and track 

matching resources (if applicable). 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 an award in accordance with their own State laws and procedures. Financial

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

detailed 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.

A recipient’sfinancial management system must include:

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

received. Thisidentification 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 applicable.

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,
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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 amountsfor each Federal award.

6) Written proceduresto 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.

A recipient must notify the AMS representative immediately when they discover financial management problems. Deficiencies in the 

recipient’sfinancial managementsystem, whetherreported by the recipient oridentified by AMS, may result in AMS imposing special

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

2.1 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. These standards require any non-Federal entity that expends $750,000 or more in Federal

awards during its 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, a recipient must submit the most recent Single Audit to AMS 30 calendar days after completion. A link to the audit report 

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

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

electronically to FAC at: https://harvester.census.gov/facweb/. Any future updates to the location of the FAC may be found at the 

OMB website.

2.2 Cost Sharing or Matching 

If the grant agreement has specific cost sharing or matching requirements, the recipient must ensure that it complies with the 

applicable provisions found in 2 CFR § 200.306. The recipient may use funds or other resources contributed by other non-Federal 

entitiesto satisfy the cost sharing or matching requirement. 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. If a recipient volunteers cost sharing above the program’s required 

amount, the total becomes a binding requirement of Federal award outlined in 2 CFR § 200.99.

Recipients must maintain documentation identifying:

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

• The funding source or contribution; and

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

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

project files and made available upon request. 

A recipient may use unrecovered indirect costs as part of cost sharing or matching. Recipients cannot use Federal funds or program

income to meet cost sharing or matching requirements.

The recipient must request prior approval from AMS before the amount of the approved cost share or match provided by the nonFederal entity can change (see 9.9 Cost Share or Match-Changesin the Amount).
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3.0 SUBRECIPIENT MONITORING & MANAGEMENT 

Recipients are accountable for the performance of subawarded projects and the appropriate expenditure of Federal funds. 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 award recipient

flow down to subrecipients.

If the recipient uses subawards, it 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 Grants Division General Terms and Conditions in its subaward agreements as well

as the provisions required under 2 CFR § 200.331. 

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. 

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

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 and must 

be accompanied with a written justification. 

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

AMS grant recipients are required to request payments electronically through the ezFedGrants system. Recipients not already 

enrolled must register in the system to request payments. Instructions for requesting a payment can be found in the ezFedGrants

system. 

AMS Grant Program Worksheet

If required by the grant agreement, an AMSGrant ProgramsWorksheet must be attached in ezFedGrants when submitting a payment. 

The AMS-33 Grant Agreement Award Face Sheet provisions section will indicate if it is required to submit an AMS Grant Program 

Worksheet.

Receipt of Request by AMS

AMS will confirm receipt of the payment request, review the request, and communicate with the appropriate recipient

representatives. 

Upon approval, payments will be made via EFT to the bank account specified by the recipient in SAM.gov. If the bank information is 

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

notify AMS to ensure proper and timely deposit of funds.

4.3 Payment Source Documentation and Other Requirements

Recipients must collect and maintain source documentation associated with costs incurred as a result of the Federal award and make 

it available to AMS upon request. Source documentation includes, but is not limited to, receipts, canceled checks, paid bills, payrolls,

time and attendance records, contracts, invoices, and subaward documents. If recipients pay a portion of the total amount indicated

on the source document, it must appropriately identify the specific expenses and total amount charged to the grant. 
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4.4 Timely Drawdown and Use of Grant Funds

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

grant period and at reasonable intervalsthereafter. 

5.0 INTEREST EARNED AND ADVANCES OF GRANTS FUNDS 

In accordance with 2 CFR § 200.305 (b)(9), the recipient may retain interest earned on Federal payments deposited in interest-bearing 

accounts up to $500 per year for administrative expenses. Any additional interest earned must be remitted annually to the Federal 

PMS, which handles payments to the Treasury. The recipient must remit the interest electronically using either an ACH network or a 

Fedwire Funds Service payment. Remittances must include pertinent information about the payee and nature of payment in the 

memo area (often referred to as “addenda records” by Financial Institutions) which 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. Submit the 

remittance using one of the following example formats:

ACH Return Example:

Routing Number: 051036706

AccountNumber: 303000

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

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

Institution for thistype of payment)

Routing Number: 021030004

AccountNumber: 75010501

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

If a recipient does not have the ability to remit funds electronically, it should instead mail a check to the U.S Treasury approved

lockbox, made payable to:

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

Unless otherwise stated in the AMS-33 Award Face Sheet provisions section, AMS authorizes the use of program income through 

the additive method (2 CFR § 200.307(e)(2)). Any program income generated during the grant period must be used to further the 

objectives of the 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. 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); and

• Registration fees for conferences, workshops, etc. 

Royalties or equivalent income earned from patents, inventions, trademarks, and copyrighted works is not subject to this section.
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7.0 PROCUREMENTS 

Recipients may acquire commercially available goods and services in connection with a 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 found at 2 CFR § 200.318 through 2 CFR § 200.326. 

• 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 and ensure that every purchase order or other contract includes applicable provisions

described in Appendix II of 2 CFR § 200. 

• All other non-Federal recipients must follow 2 CFR § 200.318 through § 200.326. 

• 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 as 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.

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. Costs must be consistently 

charged as either indirect or direct costs but may not be double charged or inconsistently charged as both (2 CFR § 200.403). 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 MTDC as the base. MTDC is 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 be excluded only 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.

8.2 Allowable and Unallowable Costs and Activities

The following table summarizes allowable and unallowable costs in common categories for AMS grant 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 § 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: 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.
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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 unless the cost is associated with 

fulfilling the purpose of the grant program and either approved in the 

application or with prior written approval.

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, and having a permanent roof supported by columns or walls.

Conferences ALL with exceptions Allowable if the conference fulfills 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 

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. 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) and travel that is reasonable 

and necessary. This does not include fringe benefits, indirect costs, or 

other expenses. If rates exceed this amount, the recipient is required to 
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justify the allowability of the cost aligning with 2 CFR §§ 200.317-326.

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

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.

Entertainment Costs ALL with exceptions Unallowable for entertainment costs including 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 where the specific cost is considered to meet the 

requirements of the sponsored program and are authorized in the 

approved budget or with prior written approval.

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 when 

provided in the approved budget or with prior written approval. 

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 

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

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 when provided in the approved budget or with prior written 

approval for acquisition costs and rental costs of special purpose 

equipment provided the following criteria is met:

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

activities of the grant agreement;

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 be used solely to meet the legislative purpose of the 

grant program and objectives of the grant agreement;

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
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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 that 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 is

the net invoice price of the equipment, including the cost of 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 

Technology Systems

ALL Unallowable for information technology systems having a useful life of 

more than one year and a per-unit acquisition cost that equals or 

exceeds the lesser of the capitalization level established in accordance 

with 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

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., that are not 

considered to be information technology systems but rather social 

media applications.

Farm, Gardening, and 

Production Activities and 

Supplies

All with exceptions 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.

Allowable where the specific cost is considered to meet the 

requirements of the sponsored program and are authorized in the 

approved budget or with prior written approval. 

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.
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Fixed Amount Subawards ALL with exceptions Unallowable for cost related to fixed amounts subawards. 

Allowable to meet the requirements of the sponsored program 

(noncompetitive) and with prior written approval. 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 

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. 

Insurance and 

Indemnification

ALL Allowable when provided in the approved budget or with prior written 

approval 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 go to lunch or dine 

together although no need exists for continuity of a meeting. Such 

activity is considered an entertainment cost.

Unallowable for conference attendee breakfasts. It is expected 

attendees will have adequate time to obtain this meal on their own 

before a conference begins.

Unallowable for meal costs that duplicate a 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 
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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 when provided in the approved budget or 

with prior written approval.

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 when provided in the approved budget or with prior written 

approval 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 when provided in the approved budget or with prior written 

approval if such costs are necessary for efficient and timely 

performance of the project’s scope of 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 the 

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 

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 

Reconversion Costs

ALL Allowable as indirect costs with prior approval for cost incurred for 

ordinary and normal 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 
15

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 

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

purpose of the grant program.

Selling and Marketing Costs –

Promotion of an 

Organization’s Image, Logo, 

or Brand Name

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

organization, a general logo, or a general brand.

• 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 Costs –

Promotion of Venues that do 

not Align with Grant Program 

Purpose

ALL Unallowable for costs for promotion of specific venues, tradeshows, 

events, meetings, programs, conventions, symposia, seminars, etc. that 

do not align with the legislated purpose of the grant program.

Selling and Marketing Costs –

Promotional Items, Gifts, 

Prizes, etc.

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

and souvenirs.

Allowable with conditions to meet the requirements of the sponsored 

agreement, in the approved application or with prior approval 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 (e.g., t-shirt, hats, etc.).

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 Unallowable for purchasing food for displays, tastings, and cooking 

demonstrations.

Allowable where the specific cost is considered to meet the

programmatic purpose of the sponsored program and is authorized in 

the approved budget or with prior written approval.

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.

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 
16

sponsorship costs will be used. These costs also benefit only 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 where activities do not specifically align with 

the purpose of the grant program. See Conferences for more 

information.

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 

inventory withdrawals, consistently applied. Incoming transportation 

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

materials and supplies 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 and 

Foreign

ALL Allowable for travel, when provided in the approved budget or with 

prior written approval when costs are limited to those allowed by 

formal organizational policy and the purpose aligns with the legislated 

purpose of the program.

The allowable travel cost of recipients that do not have formal travel 

policies and for-profit entities 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.
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9.0 CHANGES REQUIRING PRIOR WRITTEN APPROVAL

The recipient may need to make modifications, such as budget, personnel or contracts, to accomplish the objectives during the period 

of performance. Recipients are required to request prior written approval for the following items from AMS in advance of a change or

obligation of funds. Requests for prior written approval must be submitted by the recipient project coordinator and signed by the 

AOR, if applicable. 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; and

4. Project point of contact name.

AMS will confirm receipt, review the request, and communicate with the recipient project coordinator. The recipient project

coordinator may revise the prior approval request to address any questions or concerns. Once accepted, AMS will email the recipient

project coordinator with the acceptance of the request.

9.1 Change in Key Personnel/Time Devoted to the Project

Prior approval is required for changes in key personnel or if 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. Key personnel include the recipient project coordinator or AOR listed in the AMS-33 as well as other

key project contributors. The requestmustinclude:

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

2. The qualifications (CV or resume) of the new individual(s);

3. The capacity in which the new individual will serve;

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

5. The effective date.

A change in key personnel may affect the project narrative, budget, or timeline. If it does, the recipient must include this in their

request by following the applicable guidance in this section.

9.2 Change in Scope or Objectives

Prior approval is required to modify scope or objective of the project or program, including adding new project(s) or discontinuing 

project(s) (if applicable).

Prior written approval is required even if there is no associated budget revision that would require prior 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; and

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

A change in scope or objectives may affect the project narrative, outcome measures, budget (Federal and matching funds), or 

timeline. If it does, the recipient must make revisions and include this in their request by following the applicable guidance in this 

section.

9.3One-Time Extension

If the grant activities cannot be completed within the grant agreement’s period of performance, the recipient must request written

approval to extend the grant agreement’s end date (no-cost extension of time) prior to the grant’s expiration. The recipient may 

request a one-time extension of the period of performance of up to 12 months from 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:

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

2. A justification for the extension;
18

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

5. A new timetable for completing the project.

Unutilized or unobligated funds at the end of the award is not in itself justifiable to receive a no-cost time extension. AMS will provide 

case-by-case extension approval, based on the written justification provided.

9.4 Budget Change

Prior approval is required for a budget change if the Federalshare of its grant agreement exceedsthe 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 among budgeted direct cost categories or between individual subawards exceeds or is expected to

exceed 10 percent of the total Federal award budget as last approved by AMS. If the Federal share of the Federal award is less than 

the Simplified Acquisition Threshold,recipients do not need to request prior approval for budget changes. The request must include:

1. A justification for the change; and

2. A description of the requested change that includes:

a. The proposed budget change,

b. The last approved budget, and

c. An updated budget for the affected cost categories.

9.5 Pre-Award Costs

As defined in 2 CFR §200.458, pre-award costs are costsincurred 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 for more information. The request must include:

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)

Prior approval is required 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, materials, equipment, or general

support services. The request must include:

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 isrequired:

a. A description of the proposed modification,

b. The last approved budget, and

c. An updated budget for 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 its

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

justification.
19

9.7 Specific Allowable Costs Prior Approvals

Prior approval is required for allowable costs (as referenced in 2 CFR §200.407) and for those not previously submitted in the 

approved budget. See 8.2 Allowable and Unallowable Costs and Activities for more information. The request must include:

• 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 Changesto Recipient Name or Address

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

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

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

the same, while only the organization name or address would change. The request must include the new name or address of the

recipient organization and the effective date of change. NOTE: A request to have a new recipient organization (that has a new DUNS 

number) assume responsibility for the project is not allowable.

Recipients are responsible for properly updating their registration within both DUNS and SAM.gov. The recipient must inform AMS 

of any pending changes in its legal status, divesture, or bankruptcy.

9.9 Cost Share or Match – Changes in the Amount

If the award has 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 request must include:

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 categoriesto 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.

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.

10.0 PERFORMANCE AND FINANCIAL REPORTS

AMS requires submission of interim and final reports to demonstrate the progress made toward the completion of project goals, 

objectives, and outcomes, as well as the grant agreement’s overall financial status. Performance reports must be formatted and 

submitted using the approved templates or guidance. Recipients are required to submit an Federal Financial Report (SF-425) with 

each performance report to account for their financial expenditures during that reporting period.

All performance and financial reports must be submitted through ezFedGrants. The required report template and the SF-425 Federal

Financial Report, along with instructions and a sample financial report, can be found at www.ams.usda.gov/grants. Click on the 

applicable grant program website, and then click on “How to Administer the Award” in the left menu bar.
20

If a grant agreement must be extended beyond the performance period stated on the Award Agreement (AMS-33), additional 

reports may be necessary depending on the length of the extension.

If performance or financial reports are prepared by a third party and/or subrecipient, it isthe recipient AOR’sresponsibility to review 

and approve the report before forwarding it to AMS.

10.1 Interim Performance and Financial Reports

The SF-425 and interim performance report are due annually no later than 90 calendar days after each annual performance 

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

If the recipient completes the grant early, they may submit a Final Performance Report in lieu of an interim performance report.

10.2 Final Performance and Financial Reports

A final performance report and SF-425 are required to be submitted no later than 90 calendar days after the performance period 

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

10.3 Review of Performance and Financial Reports

AMS will confirm receipt of performance and financial reports. These reports will be reviewed to ensure completeness and progress

towardmeeting 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 comments and questions prior to sending the revised report(s).

10.4 Public Access to Performance Reports and Information on Report Content

Accomplishments, procedures, and other benefitsresulting fromthe 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

results of each Federal award, although additional proposal/project information, within the regulations, will be released if requested

under the FOIA.

Requested information may be made public, so AMS encourages the recipient to minimize grammatical and spelling errors in

submitted forms and materials. AMS will not edit the reports beyond ensuring that the content is complete.

10.5 Disparaging Language and Protected PII

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.

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

financialrecords, educational transcripts, etc. Personal contact information included in performance reportsshould be limited to the

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

10.6 OverdueReports

Events may occur that prevent you from submitting reports within the scheduled performance reporting dates. In such cases, the 

recipient must inform AMS assoon asit is aware of problems, delays, or adverse conditions, preferably no less than 14 calendar days 

before the due date. This disclosure must include a statement of the action taken, or contemplated, and any assistance needed to 

resolve the situation. If the late report submissions are due to issues of noncompliance, the enforcement actions described in section

17.0 Remedies for Noncompliance may be taken.
21

11.0 ACKNOWLEDGEMENT OF SUPPORT

Recipients are strongly 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.

Recipients are strongly encouraged to share with AMS success stories, videos, pictures and other materials that highlight outcomes 

and accomplishment of their grant agreement. AMS will coordinate any public announcement, press release, press interviews, web 

or social posting with the AMS Public Affair’s Office. 

12.0 PROPERTY MANAGEMENT

The title to equipment and supplies acquired by the recipient under the award 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 equipment and supplies acquired under a grant in

accordance with 2 CFR §§ 200.313 and 200.314.

12.1 Disposition of Equipment and Supplies

If the equipment has a per-unit fair market value of less than $5,000, and it 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 equipment has a per-unit fair market value of $5,000 or more, and it 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 the equipment and 

supplies, or they may be sold and compensate the Federal Government for its share.

If there is a residual inventory of unused supplies exceeding $5,000 in total aggregate value upon termination or completion of the 

project or program and the supplies are not needed for any other Federal award, the non-Federal entity must retain the supplies 

for use on other activities or sell them, but must, in either case, compensate the Federal Government for its share.

In any of these cases, 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, and then click on “How to Administer the Award” in the left menu bar.
22

AMS will review the request and provide disposition instructions for the 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. 

13.0 ADMINISTRATIVE AND NATIONAL POLICY REQUIREMENTS

You agree to comply with the following Federalstatutes and regulations as applicable to your award. These include but are not limited

to the ones listed below. The full text of Code Federal Regulations references can be found at: eCFR-Code of Federal Regulations. 

Federal statutes and regulationsfound on the SF-424B “Assurances –Non-Construction Programs.”

2 CFR § 25 – System for Award Management and Universal Identifier Requirements

2 CFR § 170 – Reporting Subaward and Executive Compensation Information

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 Requirementsfor Federal Awards

2 CFR § 400 – Uniform Administrative Requirements, Cost Principles, and Audit Requirementsfor Federal Awards

2 CFR § 415 – General Program Administrative Regulations

2 CFR § 416 – General Program Administrative RequirementsforGrants and Cooperative Agreementsto State and Local Governments

2 CFR § 418 – New Restrictions on Lobbying

2 CFR § 421 – Requirementsfor Drug-Free Workplace (Financial Assistance)

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

7 CFR § 1, subpart A – Official Records (Freedom of Information Act)

7 CFR § 1(b) – National Environmental Policy Act

7 CFR § 3 – Debt Management (OMB Circular No. A-129)

7 CFR § 15, subpart A – Nondiscrimination in Federally-Assisted Programs of the Department of Agriculture—Effectuation of Title VI of the 

Civil Rights Act of 1964

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

37 CFR § 401 – Rights to Inventions made by Nonprofit Organizations and Small Business Firms under Government Grants, Contracts, 

and Cooperative Agreements

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

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

48 CFR subpart 31.2 – Contracts with Commercial Organizations

8 U.S.C. § 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
23

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

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

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.

EO 13798, Promoting Free Speech and Religious Liberty. As a recipient you must not discriminate against sub recipients on the basis 

of their religious character. 

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.

The recipient must submit, no later than 90 calendar days after the grant end date, all documents as required by these award terms 

and conditions.

14.1 CloseoutChecklist

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. If applicable, Tangible property report (SF-428 B) (see Section 12.1); and

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 strongly encouraged.
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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 2055–South Building

Stop 0201

Washington, DC 20250-0264

15.0 RECORD RETENTION

The recipient must retain all records relating to the grant for a period of three years after the final 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 retention requirement 

and period for other types of grant-related records, including property records.

In accordance with Executive Order 13642 Making Open and Machine Readable the New Default for Government Information, the 

recipientshould, whenever practicable, collect,transmit, and store grant-related information in electronic formatsratherthan paper.

16.0 ACCESS TO RECORDS

As described in 2 CFR § 200.336, AMS, Inspectors General, the Comptroller General of theUnited States, and the pass-through entity,

or any of their authorized representatives,shall have the right of accessto any pertinent documents, papers, or records of recipients

and subrecipients which that 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 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 General Terms and

Conditions, including reporting requirements, depending on the severity and duration of the noncompliance, according to applicable

statutes, regulations, and policies. In addition to the options listed below, AMS may take other remedies that are legally available, 

including initiating suspension or debarment under 2 CFR § 180.

The recipient may be given 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 their duties. If this occurs, AMS may request that the recipient 

designate 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.
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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 may terminate an award in whole or in part per §200.340. AMS generally will suspend (rather than immediately terminate) a

grant and allow the recipient an opportunity to take appropriate corrective actions before terminating a grant agreement. AMS may 

terminate the grant if the recipient does not take appropriate corrective actions during the period of suspension. AMS may also

terminate the grant without first suspending if the deficiency warrantsimmediate termination orif public health or welfare concerns 

require immediate action. AMS will provide the recipient a notice of termination that includes the reason(s) for the termination and

if the decision will be considered in evaluating future applications.

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

conditions, including the effective date and the portion to be terminated. The recipient must contact the AMS representative should 

it decide to terminate all or part of its award. If the recipient decides to terminate a portion of a grant agreement, AMS may 

determine that the remaining portion of the grant agreement will not accomplish the purposes for which the grant agreement was 

originally awarded. In that case, AMS will advise the recipient of the possibility of termination of the entire grant and allow the 

recipients to withdraw its request for partial termination. If the recipient does not withdraw its request for partial termination, AMS 

may initiate procedure to terminate the entire grant. 

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

requirements.

17.6 Special Conditionsfor High-Risk Recipients

AMS will evaluate the degree of risk associated with a given recipient and may impose additional award conditions per 2 CFR § 200.205(b)

on the recipient that correspond to the degree of risk assessed. Thisrisk assessment may incorporate results of the evaluation of the

applicant's eligibility or the quality of its application. These specific award conditions are specified in 2 CFR § 200.207. AMS will

promptly remove any special conditions once the conditionsthat prompted them have been corrected and verified.

18.0 SITE VISITS

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

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

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

project location. If AMS makes any official 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 recipient may appeal an AMS decision to remedy non-compliance by submitting a written request for review to the Federal

Agency Project contact, identified 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 include any documentation that substantiates

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. The benefits of

using ADR can include decreasing time, cost and other resources expended in resolving conflicts and increasing customer 

satisfaction. ADR techniques include mediation, early neutral evaluation, and other consensual resolution methods.
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20.0 LIMIT OF FEDERAL LIABILITY

The maximum obligation of AMS to a recipient is the amount indicated in the award. Nothing in these award terms and conditions

or in the other requirements of the 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, if an erroneous amount is stated in the award, the

approved budget, or supporting documentation relating to the award, AMS has 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.

21.0 FRAUD, WASTE, AND ABUSE

Anyone who witnesses or has knowledge 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 toll- free numbers, for this purpose. Recipients can reach the OIG hotline in the following ways:

Mail: United States Department of Agriculture 

Office of the Inspector General

PO Box 23399

Washington, DC 20026-3399

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

Fax: 202-690-2474

Email: usda_hotline@oig.usda.gov

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

Fraud, waste, and abuse include, but are 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 fundsfor 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 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 OF CONFIDENTIALITY AGREEMENTS

The prohibition of 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.
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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. 

24.0 NONDISCRIMINATION STATEMENT

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