purchases ownership under an award (including but not limited to curricula, training models, technical assistance products, and any related materials). Such uses include, but are not limited to, the right to modify and distribute such products worldwide by any means, electronically or otherwise. Federal funds may not be used to pay any royalty or license fee for use of a copyrighted work, or the cost of acquiring by purchase a copyright in a work, where the Contractor has a license or rights of free use in such work. If revenues are generated through selling products developed with contracted funds, including intellectual property, these revenues are program income. Program income is added to the project and must be expended for allowable project activities (refer to the “Program Income” segment of this Manual). If applicable, the following wording needs to be on all products developed in whole or in part with contracted funds: “This workforce product was funded by a grant awarded by the U.S. Department of Labor’s Employment and Training Administration. The product was created by the Subrecipient and does not necessarily reflect the official position of the U.S. Department of Labor. The Department of Labor makes no guarantees, warranties, or assurances of any kind, express or implied, with respect to such information, including any information on linked sites and including, but not limited to, accuracy of the information or its completeness, timeliness, usefulness, adequacy, continued availability, or ownership. This product is copyrighted by the institution that created it. Internal use by an organization and/or personal use by an individual for non-commercial purposes is permissible. All other uses require the prior authorization of the copyright owner.” BONDING REQUIREMENTS Bonding is an agreement between a bonding or insurance company and an entity whereby the insurance or bonding company guarantees payment of a specified dollar amount as damages, in the event covered employees cause financial loss to the entity. Bonding requirements ensure that the DWD is indemnified against financial losses caused by officers and employees who hold fiduciary positions with Subrecipients. All Subrecipient personnel or their subrecipients who have access to or control funds received from the DWD and/or deposit DWD funds must be bonded to provide protection against losses. In addition, individuals who may handle mail or assist in the preparation or distribution of checks or any financial documents must also be covered by the bond. The following guidelines must be followed;
Fringe Benefits Worksheet; Statement of Total Costs supporting the indirect and direct costs incurred by expense category, identified by federal agency, specific government grant, contract, and other non-government activities; and Statement of Indirect including indirect cost pool(s), allocation base(s), and indirect cost rate(s) proposed. Audited financial statements for the rate proposal. Approved budget for provisional proposal, if needed. Certification that the Indirect Cost Rate Proposal was prepared in a manner consistent with the applicable cost principles set forth in 2 CFR Part 200, Subpart E & Appendix IV for non-profits, or the Federal Acquisition Regulation ((Part 31) for commercial organizations. The certifications should be signed by the President/Executive Director, or Comptroller/CFO. A listing of grants and contracts by federal agency subagency, program office funding source, award amount, period of performance, and the indirect cost (overhead) limitations (if any) applicable to each, such as, ceiling rates or amounts restricted by administrative or statutory regulations, applicable to the period(s) of the proposal(s). Subrecipients negotiating indirect cost rates with the DWD must note that the Statement of Total Costs, referenced at 2 (d) above, must reconcile to their Financial Statements. If not, reconciliation statement must be provided. In accordance with the Uniform Guidance, any Subrecipient that has received a negotiated indirect cost rate, except States and local governments, and Indian Tribe, may elect to charge a de minimis rate of ten percent (10%) of Modified Total Direct Costs (“MTDC”), which may be used indefinitely. MTDC means all direct: Salaries and wages; Applicable fringe benefits; Materials and supplies; Services Travel; and
Excess Cash is monitored monthly, and is reviewed during DWD’s annual financial monitoring. The DWD may impose additional restrictions on cash flow if any Subrecipient shows a recurring problem with Excess Cash. PART IV PROGRAM INCOME Program income means gross income earned by the non-Federal entity that is directly generated by a supported activity or earned as a result of the Federal award during the period of performance. Program income includes, but is not limited to, income from fees for services performed, the use or rental or real or personal property acquired under Federal awards, the sale of commodities or items fabricated under a Federal award, license fees and royalties on patents and copyrights, and principal and interest on loans made with Federal award funds. With specific reference to Subrecipients and their subrecipients, program income means gross income received by Subrecipients or their subrecipients that is directly generated by DWD grant supported activity, or earned only as a result of the grant during the grant period. Grant period means the time frame between the effective date of DWD award and the ending date of the award. Rebates, credits, discounts, refunds, and interest earned on any of them are not considered program income. The Uniform Guidance, 2 CFR 200.307, provides additional insight on program income. In addition to the requirements under CFR 200.307, Subrecipients and their subrecipients must also adhere to the following specific provisions: