North Carolina Administrative Code › Title 04 - COMMERCE › Chapter 20 - EMPLOYMENT AND TRAINING › Subchapter B - ADMINISTRATIVE PROVISIONS › Section .0300 - FISCAL STANDARDS › Section 20B .0304 - PROCUREMENT AND PROPERTY STANDARDS

Current through Register Vol. 39, No. 2, July 15, 2024
(a) In
				  order to insure that the maximum benefit is derived from subgrant and contract
				  funds, subrecipients must adhere to all federal, state, local and internal
				  procurement guidelines. Non-governmental subrecipients must adopt and adhere to
				  procurement procedures that reflect compliance with the intent of laws and
				  regulations applicable to governmental subrecipients, specifically prohibitions
				  on solicitation or acceptance of anything of monetary value from suppliers or
				  potential conflict of interest for a member of the board of the subrecipient,
				  an officer of the subrecipient, an employee or agency of the subrecipient, or a
				  member of the immediate family of a board member, officer or
				  employee.
(b) Cost plus a
				  percentage of cost contracts are prohibited.
(c) Real property may not be procured or
				  received without prior written authorization from the Division. Nonexpendable
				  property may not be affixed to real property without the prior written
				  authorization of the Division. The Division may condition the procurement or
				  receipt of real property or the affixation of nonexpendable property to real
				  property, as the Division considers is necessary to comply with federal law and
				  to effectuate JTPA policies. Except where specific written authorization has
				  been procured, the affixation of nonexpendable property to real property is a
				  conversion of that property.
(d)
				  Nonexpendable property shall be subject to the following regulations:
(1) Title to property. Title to all
				  nonexpendable property, except nonexpendable property to which the federal
				  government claims title, that is purchased with federal employment and training
				  funds received directly or indirectly through the Division, shall be in the
				  name of the Department. To the extent possible, nonexpendable property should
				  be procured with funds from a single grant source, to facilitate identification
				  of nonexpendable property. Where nonexpendable property is purchased in part
				  with JTPA funds and in part with other funds, the Department has a
				  proportionate interest in the property and it is covered by this
				  Paragraph.
(2) Use. Nonexpendable
				  property may be used by the subgrantee or contractor as long as there is a need
				  for such property to accomplish the subgrant or contract objectives, or the
				  objectives of subsequent contracts or subgrants from the Division, supported by
				  JTPA funds.
(3) Transfer. When the
				  subgrantee or contractor no longer needs the nonexpendable property, it is the
				  responsibility of the subgrantee or contractor to return the property to the
				  physical control of the Division. The Division may provide transportation for
				  the property. This Section shall not apply if the depreciated value of the
				  property is less than one hundred dollars ($100.00), in which case the
				  subgrantee or contractor, after completion of any required forms, may retain
				  the nonexpendable property, unless the federal government has a claim to the
				  title of the property.
(4)
				  Constructive Transfer. The use of property for non-JTPA purposes will be deemed
				  a constructive transfer to the subgrantee or contractor, which will be liable
				  for the fair market value of the nonexpendable property at the time of the
				  constructive transfer. The fair market value will be payable to the Division,
				  or in the Division's discretion, to the subgrant or contract funds, where it
				  will be treated in all respects as program income, except that the exemption
				  for on-the-job training and tryout employment programs will not apply to
				  program income generated in this manner.
(5) Non-expendable property must be subjected
				  to a physical inventory not less than once a year. Subgrantees must identify
				  property officers responsible for the maintenance of an inventory. The Division
				  will conduct the inventory of its contractors' nonexpendable property and will
				  conduct periodic reviews of the inventory of subgrantees' nonexpendable
				  property. Physical inventories made other than at the close of the fiscal year
				  must be updated effective the last day of the fiscal year.
(6) All nonexpendable property must have
				  property labels, as required by the state and federal regulations, affixed. The
				  property officer for the subgrantee shall be responsible, in concert with the
				  Division, for assuring that all subgrantee nonexpendable property bears the
				  appropriate label(s).
(7) Property
				  records shall be maintained accurately and shall provide:
(A) A description of the property;
(B) Manufacturer's serial number or other
				  identification number;
(C)
				  Acquisition date and unit acquisition cost;
(D) Source of the property;
(E) Percentage of JTPA funds used in the
				  acquisition;
(F) Location, use and
				  condition of the property;
(G)
				  State and/or federal government control number from label; and
(H) Ultimate disposition data.
(8) Adequate maintenance
				  procedures shall be implemented to insure maximum use of the
				  property.
(9) Nonexpendable
				  intangible property shall become the property of the Division when developed by
				  or in a funded activity, as a work for hire by the Division. The intangible
				  property shall be available, for the costs of reproduction to any subgrantee or
				  contractor for JTPA purposes, and shall be available as otherwise required by
				  the federal regulations. Income generated from intangible property will be
				  payable to the Division, to the subgrant or contract funds where the intangible
				  property was developed, where it will be treated as program income.