[Federal Register Volume 63, Number 136 (Thursday, July 16, 1998)]
[Notices]
[Pages 38450-38453]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-18697]


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UNITED STATES INFORMATION AGENCY


Uniform Administrative Requirements for Grants and Agreements 
With Institutions of Higher Education, Hospitals, and Other Nonprofit 
Organizations

AGENCY: United States Information Agency.

ACTION: Notice; request for public comments.

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SUMMARY: The United States Information Agency has combined into one 
form the Form IA-1119 (10/85)--Guidelines for the Administration of 
Assistance Awards Awarded by the United States Information Agency and 
the former Form IA-1120 (10/85)--United States Information Agency, 
Office of Contracts, General Conditions, Assistance Awards. The 
combined form has been retitled IA-1119 (04/98)--Terms and Conditions 
for the Administration of United States Information Agency Assistance 
Awards.

DATES: Written comments must be sent by August 17, 1998.

    Authority: This notice is issued under the authority of 22 
U.S.C. 2658 and E.O. 12048.

ADDRESSES: Send comments to USIA, Office of Contracts, Grants Division, 
301 4th Street SW., Room M22, Washington, DC 20547.

FOR FURTHER INFORMATION CONTACT:
Joyce C. Love on 202-205-8590 or Carolyn Payne-Fuller on 202-260-3145.

    Dated: July 8, 1998.
James W. Durham,
Acting Director, Office of Contracts.

Terms and Conditions for the Administration of United States 
Information Agency Assistance Awards

Table of Contents

Article I. Introduction
Article II. Assistance Awards (Grant Agreement, Cooperative 
Agreement or Letter Agreement)
Article III. Amendments
Article IV. Audits
Article V. Compliance With Federal and State Laws
Article VI. Convict Labor
Article VII. Disputes
Article VIII. Examination of Records
Article IX. Payment of Interest on Recipients' Claims
Article X. Refunds
Article XI. Reports
Article XII. Subcontractors and Outside Associates and Consultants
Article XIII. Termination
Article XIV. Travel

I. Introduction

    This document defines award terms and conditions and procedures for 
institutions and organizations to use in receiving, disbursing and 
accounting for funds awarded by the United States Information Agency. 
Any questions concerning these procedures should be addressed to: U.S. 
Information Agency, Office of Contracts, Grants Division, M/KG, 
Washington, DC 20547, Phone: (202) 205-5477.

II. Assistance Awards (Grant Agreement, Cooperative Agreement or 
Letter Agreement)

    An agreement is formalized by a document signed by the Grants 
Officer, U.S. Government, duly appointed by the Agency, and accepted by 
the recipient institution or organization. The agreement will contain 
the terms and conditions appropriate to the purpose of the project, and 
the recipient is required to follow the provisions of the agreement in 
carrying out the program. These Terms and Conditions apply, unless 
specifically modified or deleted in the text of the award document, to 
all grants, cooperative agreements or letter agreements awarded by the 
United States Information Agency. As used in these Terms and 
Conditions, all references to the Grants Officer refer to the officer, 
his or her successor or designee, executing the award document for the 
Agency.

III. Amendments

    The agreement is subject to amendment for such purposes as are 
necessary to enable the grantee to assist the Agency in the conduct of 
its programs. However, requests for amendments will not be considered 
unless the Recipient is in compliance with all reporting requirements 
stipulated in the Agreement.

IV. Audits

    Revised Circular A-133, which implements the Single Audit Act 
Amendments of 1996, provides uniform single audit requirements for all 
non-federal grantees--state and local governments (including Indian 
tribal governments), colleges and universities, hospitals and other 
non-profit organizations (however non-U.S. based entities are exempt). 
It applies to audits of fiscal years beginning after June 30, 1996.

V. Compliance With Federal and State Laws

    In the performance of the work authorized pursuant to this award, 
the recipient agrees to comply with all applicable Federal and State 
laws, rules and regulations which deal with or relate to the employment 
by the recipient of the employees necessary for such performance.

VI. Convict Labor

    In connection with the performance of work under this award, the 
recipient agrees not to employ any person undergoing sentence of 
imprisonment except as provided by Pub. L. 89-176, September 10, 1965 
(18 U.S.C. 4082 (c)(2)) and Executive Order 11755, December 29, 1973.

VIII. Disputes

    A. Except as otherwise provided in this award, any dispute 
concerning a question of fact arising under this award that is not 
disposed of by agreement shall be decided by the Grants Officer, who 
shall reduce his/her decision to

[[Page 38451]]

writing and mail or otherwise furnish a copy to the recipient. The 
decision of the Grants Officer shall be final and conclusive unless, 
within thirty (30 days from the date of receipt of such copy, the 
recipient mails or otherwise furnishes to the Grants Officer a written 
appeal addressed to the Director of the United States Information 
Agency. The decision of the Director's authorized representative for 
the determination of such appeal shall be final and conclusive unless 
determined by a court of competent jurisdiction to have been 
fraudulent, or capricious, or arbitrary, or so grossly erroneous as 
necessarily to imply bad faith, or not supported by substantial 
evidence. In connection with any appeal proceeding under this clause, 
the recipient shall be allowed an opportunity to be heard and to offer 
evidence in support of this appeal. Pending final decision of a 
dispute, the recipient shall proceed diligently with the performance of 
the award and in accordance with the Grants Officer's decision.
    B. Any failure by the parties to agree on the allowability or 
allocability of costs under this award shall be considered a dispute 
concerning a question of fact for decision by the Grants Officer within 
the meaning of this clause.
    C. This Disputes clause does not preclude consideration of legal 
questions in connection with decisions provided in paragraph (A) above: 
Provided, that nothing in this award shall be construed as making final 
the decision of any administrative official, representative, or board 
on a question of law.

VIII. Examination of Records (OMB Circular A-110)

    The United States Information Agency, the Inspector General, the 
Comptroller General of the United States, or any of their duly 
authorized representatives, have the right of timely and unrestricted 
access to any books, documents, papers, or other records of the 
recipient that are pertinent to the award, in order to make audits, 
examinations, excerpts, transcripts and copies of such documents. This 
right also includes timely and reasonable access to a recipient's 
personnel for the purpose of interview and discussion related to such 
documents. The rights of access in this paragraph are not limited to 
the required retention period, but shall last as long as records are 
retained.

IX. Payment of Interest on Recipient's Claim

    A. If an appeal is filed by the recipient from a final decision of 
the Grants Officer under the disputes clause of this award, denying a 
claim arising under the award, simple interest on the amount of the 
claim finally determined owed by the Government shall be payable to the 
recipient. Such interest shall be at the rate determined by the 
Secretary of the Treasury pursuant to Pub. L. 92-41, 85 Stat. 97, from 
the date the recipient furnishes to the Grants Officer a written appeal 
under the Disputes clause of this award, to the date of (1) a final 
judgement by a court of competent jurisdiction, or (2) mailing to the 
recipient of a supplemental agreement for execution either confirming 
complete negotiations between the parties or carrying out a decision of 
a board of contract appeals.
    B. Notwithstanding (A) above, (1) interest shall be applied only 
from the date payment was due, if such date is later than the filing of 
appeal, and (2) interest shall not be paid for any period of time that 
the Grants Officer determined the recipient has unduly delayed in 
pursuing remedies before a board of contract appeals or a court of 
competent jurisdiction.

X. Refunds

    A. If any of the funds made available to the recipient are 
unexpended upon the expiration or termination of the award, as of the 
due date of the final financial report, a check made payable to the 
United States Information Agency for the unexpended balance shall 
accompany the final financial report(s).

B. Subsequent Refunds

    The recipient shall refund to the Agency all refunds, rebates, or 
credits, received after submission of the final financial report. The 
recipient may, however, deduct from any such refunds, rebates, or 
credits all bona fide costs incurred by the recipient prior to the 
expiration date of the agreement but not billed to the recipient until 
after submission of the financial report. When subsequent transactions 
of this nature occur, a notice shall be sent to the Agency describing 
each item and amount involved and indicating that this subsequent 
notice amends the report previously submitted. A copy of such notice, 
together with the net amount of the refund, shall be forwarded to the 
Agency.

XI. Reports

    A. Program--The agreement will state the due date and the type of 
report required for the recipient to fulfill its program obligations. 
The program report shall include the agreement number, period covered 
and whether it is an ``interim'' or ``final'' report.
    B. Financial--The agreement will state the due date of the report. 
SF-269, ``Financial Status Report'' (sample attached), should be used 
to report all expenditures of funds. The report shall include the 
agreement number, the period covered, and whether it is an ``interim'' 
or ``final'' report. The final financial report shall be certified by 
the recipient's chief fiscal officer, or officer with comparable 
function and authority, as follows:

    ``I hereby certify to the best of my knowledge and belief that 
this report is correct and complete and that all outlays and 
unliquidated obligations are for the purposes set forth in the award 
documents.''

    C. If, for reasons beyond its control, the recipient institution or 
organization cannot submit the program and financial reports when due, 
it should request permission from the Grants Officer to submit them at 
a later date.

XII. Subcontractors and Outside Associates and Consultants

    None of the substantive programmatic work under a grant or other 
agreement may be subcontracted or transferred without prior approval of 
the USIA Grants Officer. This provision does not apply to the purchase 
of supplies, material, equipment, or general support services.

XIII. Termination

A. Termination for Cause

    The Federal sponsoring agency may reserve the right to terminate 
any grant or other agreement in whole or in part at any time before the 
date of completion, whenever it is determined that the recipient has 
failed to comply with the conditions of the agreement. The Federal 
sponsoring agency shall promptly notify the recipient in writing of the 
determination and reasons for the termination, together with the 
effective date. Payments made to recipient or recoveries by the Federal 
sponsoring agency under grants or other agreements terminated for cause 
shall be in accordance with the legal rights and liabilities of the 
parties.

B. Termination for Convenience

    1. The Federal sponsoring agency or recipient may terminate grants 
and other agreements in whole or in part when both parties agree that 
the continuation of the project would not produce beneficial results 
commensurate with the further expenditure of funds. The two parties 
shall agree upon the termination conditions, including the effective 
date and, in the case of partial terminations, the portion to be 
terminated. The

[[Page 38452]]

recipient shall not incur new obligations for the terminated portion 
after the effective date, and shall cancel as many outstanding 
obligations as possible.
    2. The Federal sponsoring agency shall allow full credit to the 
recipient for the Federal share of the noncancellable obligations, 
properly incurred by the recipient prior to termination.

XIV. Travel

A. Definitions

    The terms used in this clause have the following meanings:
    1. ``International air transportation'' means transportation of 
persons (and their personal effects) or property by air between a place 
in the United States and a place outside thereof or between two places 
both of which are outside the United States.
    2. ``U.S. Flag Air Carrier'' means one of a class of air carriers 
holding a certificate of public convenience and necessity issued by the 
Civil Aeronautics Board, approved by the President, authorizing 
operations between the United States and/or its territories and one or 
more foreign countries.
    3. The term ``United States'' includes the fifty states, 
Commonwealth of Puerto Rico, possessions of the United States, and the 
District of Columbia.

B. Preference for U.S. Flag Air Carriers

    1. Pub. L. 93-623 requires that all Federal agencies and Government 
contractors, subcontractors and award recipients use U.S. Flag Air 
Carriers for international air transportation of personnel (and their 
personal effects) or property, to the extent services by such carriers 
is available. It further provides that the Comptroller General of the 
United States shall disallow any expenditure from appropriated funds 
for international air transportation on other than a U.S. Flag Air 
Carrier in the absence of satisfactory proof of the necessity.
    2. In the event that the recipient selects a carrier other than a 
U.S. Flag Air Carrier for international air transportation, a 
certification must be included on vouchers involving such 
transportation essentially as follows:

Certification of Unavailability of U.S. Flag Air Carriers

    I hereby certify that transportation service for personnel (and 
their personal effects) or property by a certified U.S. Flag Air 
Carrier was unavailable for the following reason(s): (state reason(s))
    3. The recipient shall include the substance of this clause, 
including this paragraph (3), in each subcontract, subgrant or purchase 
hereunder which may involve international air transportation.
    4. U.S. Flag Air Carriers--All transportation of persons or 
property to be paid with funds provided by the agreement must be 
performed on a U.S. Flag Air Carrier when such service is 
``available.'' In all but the most unusual circumstances, all travel 
that originates, terminates or involves stopovers in the United States 
must be on U.S. Flag Air Carriers.
    5. a. Examples of the ``unavailability'' of passenger service by a 
U.S. Flag Air Carrier:
    (1) When the gateway airport abroad is the traveler's origin or 
destination airport, and the use of a U.S. Flag Air Carrier would 
extend the time in travel status, including delay at origin and early 
arrival at destination, by at least 24 hours; or
    (2) When the gateway airport abroad is an interchange point and the 
use of a U.S. Flag Air Carrier would require the traveler to wait six 
hours or more to make connections at that point; or
    (3) When connecting with ongoing flights at the gateway airport in 
the United States would extend the traveler's time in travel status by 
at least six hours.
    b. U.S. Flag Air Carrier service will be used to the furthest 
interchange point with foreign carriers and foreign carrier service 
will be used to the nearest interchange point with U.S. Flag Air 
Carriers which will not extend the traveler's time in travel status by 
more than six hours between points of origin and destination.

C. Economy Class Accommodations

    In conformity with general U.S. Government policy, it is the policy 
of the Agency that persons traveling under Agency programs use economy 
class accommodations. There are exceptional circumstances, however, 
when the use of other than economy class accommodations may be 
necessary. The recipient may apply the following limited guidance in 
determining whether other than economy class accommodations may be 
permitted.

D. Mode of Travel

1. Train Travel
    (a) Sleeping Car Accommodations. When overnight travel is involved, 
the least expensive first class sleeping accommodations available shall 
be allowed. Higher cost accommodations may be authorized or approved 
upon certification by the traveler on the travel voucher that the 
lowest cost accommodations were not available or that the higher cost 
accommodations were authorized or approved by the Agency for reasons of 
security.
    (b) Parlor Car and Reserved Coach Accommodations. For train travel 
exceeding four hours, reserved coach accommodations will be used to the 
greatest extent possible. A parlor car seat may be allowed when 
reserved coach accommodations are not available.
    (c) Extra-Fare Trains. Travel by extra-fare trains may be 
authorized when administratively determined to be advantageous to the 
Government or required for security reasons. The use of the Metroliner 
coach service is considered to be advantageous to the Government.
2. Air Travel

A. Policy

    It is the policy of the Government that employees or individuals on 
official business using commercial air carriers for domestic or 
international flights travel in economy class accommodations. The 
limited exceptions to this policy are listed below.

B. Exceptions to Economy Class Travel May Occur When

    (1) Regularly scheduled flights between the authorized origin and 
destination points (including connection points) provide only business 
class service. The traveler must provide certification to that effect 
on the travel voucher.
    (2) Space is not available in economy class accommodations on any 
scheduled flights in time to accomplish the purpose of the travel, 
which is so urgent that it cannot be postponed.
    (3) Business class accommodations are necessary due to the 
disabling condition of the traveler that other accommodations cannot be 
used. Such condition must be substantiated by medical authority.
    (4) Business-class accommodations are required for security 
purposes or because exceptional circumstances make their use essential 
to the successful performance of an Agency mission.
    (5) Economy class accommodations on foreign carriers do not provide 
adequate sanitation or meet minimum health standards.

C. Authority for Business Class Travel

    The authority to authorize or approve business class air travel for 
exceptions (1) through (5) above is lodged with the Associate Director 
for the Bureau of

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Educational and Cultural Affairs and cannot be redelegated. The 
authorization for business class travel shall be made in advance of 
actual travel unless circumstances make advanced authorization 
impossible. In these cases, the Program Officer will obtain written 
approval from the Associate Director as soon as possible.
    3. Travel Arrangements and Payment. If the funds are withheld by 
the Agency, with payment made by the Agency or its designated 
representative (Embassy), the recipient institution/organization or its 
designated representative will make all arrangements for the travel 
authorized in the agreement. Such arrangements include planning the 
itinerary and obtaining the tickets.

[FR Doc. 98-18697 Filed 7-15-98; 8:45 am]
BILLING CODE 8230-01-M