RES 2012-1240 - Agmt with Iowa Institute for Community Alliances for homeless management information system services •
OF 0MAHA,iyFe�
Planning Department
C.41117
i��,(�� k�. r Omaha/Douglas Civic Center
® r� y `� 1819 Farnam Street,Suite 1100
4 1L NT,�, , ��C} i 4 F Omaha,Nebraska 68183
Ito." 4 (402)444-5150
O'TFD FE503t.S t"•,"` ,..,a.... n xr . Telefax(402)444-6140
� + '` R.E.Cunningham,RA,F.SAME
City of Omaha .. "`= tC• Director
Jim Suttle,Mayor
September 11, 2012
Honorable President
and Members of the City Council,
The attached Resolution approves an Agreement between the City of Omaha and the Iowa Institute
for Community Alliances, an Iowa Non-profit Corporation, 1111 9th Street, Des Moines, Iowa
50314,in the amount of$13,876.00 to provide Homeless Management Information Services(HMIS)
to recipients of Emergency Solutions Grant funds. (Funds to be paid from the Fiscal Year 2012
Emergency Solutions Grant, Fund No. 12139, Organization No. 129028.)
The Omaha-Council Bluffs Consortium Consolidated Submission for Community Development
Programs: 2012 Action Plan was approved by the City Council on November 8, 2011, Resolution
No. 1234,and then amended by City Council on June 5,2012, Resolution 657. In that amendment,
emergency shelter, rapid re-housing, homelessness prevention and information management were
identified and funding priorities for Emergency Solutions Grant dollars. The City of Omaha has
received a Fiscal Year 2012. Emergency Solutions Grant Entitlement of$363,002.00 from the U.S.
Department of Housing and Urban Development.
The City solicited proposals from non-profit organizations through a Request for Proposals process
initiated February 21, 2012. Proposals were reviewed by City Planning staff and also by an
independent panel convened by the Metro Area Continuum of Care for the Homeless (MACCH).
The MACCH panel was charged with the task of making funding recommendations based on
Continuum of Care funding priorities. Upon review of the panel's recommendations, the City
recommends funding the following homeless programs for the purpose of addressing homelessness
in the City of Omaha.
d(33 U.S:C.1251 el seq.).Violations
shall be reported to the Federal awarding agency and the Regional Office of the Environmental Protection Agency
(EPA).
7.Byrd Anti-Lobbying Amendment(31 U.S.C.1352)-Contractors who apply or bid for an award of$100,000 or
more shall file the required certification.Each tier certifies to the tier above that it will not and has not used Federal
appropriated funds to pay any person or organization for influencing or attempting to influence an officer or employee
of any agency,a member of Congress,officer or employee of Congress,or an employee of a member of Congress in
connection with obtaining any Federal contract,grant or any other award covered by 31 U.S.C.1352.Each tier shall
also disclose any lobbying with non-Federal funds that takes place in connection with obtaining any Federal award.
Such disclosures are forwarded from tier to tier up to the recipient.
8.Debarment and Suspension(E.O.s 12549 and 12689)-No contract shall be made to parties listed on the General
Services Administration's List of Parties Excluded from Federal Procurement or Nonprocurement Programs in
accordance with E.O.s 12549 and 12689,"Debarment and Suspension."This list contains the names of parties
debarred,suspended,or otherwise excluded by agencies,and contractors declared ineligible under statutory or
regulatory authority other than E.O.12549.Contractors with awards that exceed the small purchase threshold shall
provide the required certification regarding its exclusion status and that of its principal employees.
Top of Page
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USA quv I S,t.rnbrr Ir..FF5 Fix:rt< Appry tnr a./td;
•
•
http://wwvv.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
ted
violations to the Federal awarding agency.
http://www.whitehouse.gov/omb/circulars_a 1 10/ 7/16/2012
ount after fully considering the recommendations on disallowed costs
resulting from the final audit.
_.72 Subsequent adjustments and continuing responsibilities.
http://www.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
http://www.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
nts.
.51 Monitoring and reporting program performance.
(a)Recipients are responsible for managing and monitoring each project..program,subaward.function or activity
supported by the award.Recipients shall monitor subawards to ensure subrecipients have met the audit requirements
as delineated in Section_.26.
(b)The Federal awarding agency shall prescribe the frequency with which the performance reports shall be submitted.
Except as provided in paragraph_.51(f),performance reports shall not be required more frequently than quarterly
or.less frequently than annually.Annual reports shall be due 90 calendar days after the grant year:quarterly or semi-
hup://wvvvv.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
inancial data to performance data and develop unit
cost information whenever practical.
(b)Recipients'financial management systems shall provide for the following.
(1)Accurate,current and complete disclosure of the financial results of each federally-sponsored project or
program in accordance with the reporting requirements set forth in Section_.52.If a Federal awarding agency
requires reporting on an accrual basis from a recipient that maintains its records on other than an accrual basis,
the recipient shall not be required to establish an accrual accounting system.These recipients may develop such
accrual data for its reports on the basis of an analysis of the documentation on hand.
http://www.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20,2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible, homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
minations,excerpts,
governments)and 24 CFR part 84{for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
plicable. (b),and the provision on using document their compliance with the
Where a provider,pastoral counselor,or any that the applicant meets one or both of
Honorable President
and Members of the City Council
Page 2
Organization Amount
Catholic Charities: The Shelter $ 6,000.00
The Stephen Center—Emergency Shelter $ 32,000.00
Siena-Francis House—Emergency Shelter $147,801.00
Help the Homeless—Emergency Shelter $ 32,000.00
Heartland Family Service—Rapid Re-housing $ 33,600.00
Family Housing Advisory Services - Prevention $ 33,700.00
Together- Prevention $ 36,800.00
Iowa Institute for Community Alliances—CoC Data System $ 13,876.00
Total $335,777.00
City Administration $ 27,225.00
Grand Total $363,002.00
As a result of this particular Agreement, the Iowa Institute for Community Alliances will provide
Homeless Management Information Services (HMIS)to recipients of Emergency Solutions Grant
funds.
The Iowa Institute for Community Alliances(Contractor)has a current Contract Compliance(CC-1)
form on file in the Human Rights and Relations Department. As is City policy,the Human Rights
and Relations Department will review the contractor to ensure compliance with the Contract
Compliance Ordinance.
e 5,2012, Resolution 657. In that amendment,
emergency shelter, rapid re-housing, homelessness prevention and information management were
identified and funding priorities for Emergency Solutions Grant dollars. The City of Omaha has
received a Fiscal Year 2012. Emergency Solutions Grant Entitlement of$363,002.00 from the U.S.
Department of Housing and Urban Development.
The City solicited proposals from non-profit organizations through a Request for Proposals process
initiated February 21, 2012. Proposals were reviewed by City Planning staff and also by an
independent panel convened by the Metro Area Continuum of Care for the Homeless (MACCH).
The MACCH panel was charged with the task of making funding recommendations based on
Continuum of Care funding priorities. Upon review of the panel's recommendations, the City
recommends funding the following homeless programs for the purpose of addressing homelessness
in the City of Omaha.
d(33 U.S:C.1251 el seq.).Violations
shall be reported to the Federal awarding agency and the Regional Office of the Environmental Protection Agency
(EPA).
7.Byrd Anti-Lobbying Amendment(31 U.S.C.1352)-Contractors who apply or bid for an award of$100,000 or
more shall file the required certification.Each tier certifies to the tier above that it will not and has not used Federal
appropriated funds to pay any person or organization for influencing or attempting to influence an officer or employee
of any agency,a member of Congress,officer or employee of Congress,or an employee of a member of Congress in
connection with obtaining any Federal contract,grant or any other award covered by 31 U.S.C.1352.Each tier shall
also disclose any lobbying with non-Federal funds that takes place in connection with obtaining any Federal award.
Such disclosures are forwarded from tier to tier up to the recipient.
8.Debarment and Suspension(E.O.s 12549 and 12689)-No contract shall be made to parties listed on the General
Services Administration's List of Parties Excluded from Federal Procurement or Nonprocurement Programs in
accordance with E.O.s 12549 and 12689,"Debarment and Suspension."This list contains the names of parties
debarred,suspended,or otherwise excluded by agencies,and contractors declared ineligible under statutory or
regulatory authority other than E.O.12549.Contractors with awards that exceed the small purchase threshold shall
provide the required certification regarding its exclusion status and that of its principal employees.
Top of Page
Fri r';paii'.I i Arcr.ssitnl:ly :Copyright lnWnnat;rrl 'Pl�vacy r>nlicy r;nul�rt
USA quv I S,t.rnbrr Ir..FF5 Fix:rt< Appry tnr a./td;
•
•
http://wwvv.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
ted
violations to the Federal awarding agency.
http://www.whitehouse.gov/omb/circulars_a 1 10/ 7/16/2012
ount after fully considering the recommendations on disallowed costs
resulting from the final audit.
_.72 Subsequent adjustments and continuing responsibilities.
http://www.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
http://www.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
nts.
.51 Monitoring and reporting program performance.
(a)Recipients are responsible for managing and monitoring each project..program,subaward.function or activity
supported by the award.Recipients shall monitor subawards to ensure subrecipients have met the audit requirements
as delineated in Section_.26.
(b)The Federal awarding agency shall prescribe the frequency with which the performance reports shall be submitted.
Except as provided in paragraph_.51(f),performance reports shall not be required more frequently than quarterly
or.less frequently than annually.Annual reports shall be due 90 calendar days after the grant year:quarterly or semi-
hup://wvvvv.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
inancial data to performance data and develop unit
cost information whenever practical.
(b)Recipients'financial management systems shall provide for the following.
(1)Accurate,current and complete disclosure of the financial results of each federally-sponsored project or
program in accordance with the reporting requirements set forth in Section_.52.If a Federal awarding agency
requires reporting on an accrual basis from a recipient that maintains its records on other than an accrual basis,
the recipient shall not be required to establish an accrual accounting system.These recipients may develop such
accrual data for its reports on the basis of an analysis of the documentation on hand.
http://www.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20,2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible, homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
minations,excerpts,
governments)and 24 CFR part 84{for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
plicable. (b),and the provision on using document their compliance with the
Where a provider,pastoral counselor,or any that the applicant meets one or both of
We urge your favorable consideration of this Resolution.
Sincerely, Referred to City Council for Consideration:
,I.. -e r 1 J/3M- - 4' �. - /2
R. E. Cunningham, RA, F. SAME Date Mayor's Offic Date
/p w Planning Director 'OWQ` Approved as to Funding: Approved:
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( at)i)Ido--k 2a-ei`z a fikv,
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Pam Spaccarotella Date Human Rights &Relations Director Date
Finance Director ,(p
Plnlsf1555-cover letter
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aermaz
By ci1member
Adopted S. 1. 12012 •
C• Clerk
Approved... .
Mayor
treets
AGREEMENT
BETWEEN THE CITY OF OMAHA AND THE IOWA INSTITUTE FOR COMMUNITY
ALLIANCES FOR THE USE OF EMERGENCY SOLUTIONS GRANT FUNDS
FOR HMIS FUNDING
Table of Contents
SECTION 1. DEFINITIONS -ABBREVIATIONS
SECTION 2. DUTIES AND CONDITIONS OF CITY FINANCING
SECTION 3. DUTIES AND RESPONSIBILITIES OF THE CONTRACTOR
SECTION 4. TERM OF THE AGREEMENT
SECTION 5. MUTUAL AGREEMENTS BETWEEN CITY AND CONTRACTOR
SECTION 6. CONTRACTOR'S COMPLIANCE WITH OTHER FEDERAL
REGULATIONS
SECTION 7. AUTHORIZED REPRESENTATIVES
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fl700-res
aermaz
By ci1member
Adopted S. 1. 12012 •
C• Clerk
Approved... .
Mayor
treets
THIS AGREEMENT is entered into by and between the City of Omaha, a Municipal Corporation
in Douglas County, Nebraska (sometimes hereinafter referred to as "City") and the Iowa Institute for
Community Alliances, an Iowa Non-profit Corporation, 1111 9`h Street, Des Moines, Iowa 50314,
(sometimes hereinafter referred to as "Contractor") on the terms, conditions and provisions as set forth
below:
RECITALS:
WHEREAS, the City of Omaha is a municipal corporation located in Douglas County,Nebraska,
and is organized and exists under the laws of the State of Nebraska, and is authorized and empowered to
exercise all powers conferred by the State constitution, laws, Home Rule Charter of the City of Omaha,
1956, as amended, and local ordinances including, but not limited to,the power to contract; and,
WHEREAS, the City of Omaha applied for Emergency Solutions Grant Program funds from the
U.S. Department of Housing and Urban Development, as stated in the Omaha-Council Bluffs Consortium
Consolidated Submission for Community Development Programs: 2012 Action Plan approved by the
City Council on November 8, 2011, Resolution No. 1234, and amended by City Council on June 5, 2012,
Resolution 657,and received a$363,002.00 grant; and,
WHEREAS, the Metro Area Continuum of Care for the Homeless identified data management in
the form of a Homeless Management Information System as a funding priority for the Emergency
Solutions Grant Program; and,
WHEREAS, the Iowa Institute for Community Alliances will provide Homeless Management
Information System services, as provided in the grant application submitted to the City of Omaha in
response to the FY 2012 Emergency Solutions Grant Program Request for Proposals; and,
WHEREAS, the City of Omaha has allocated $13,876.00 to the Iowa Institute for Community
Alliances to provide Homeless Management Information System services; and,
WHEREAS, the Planning Department and the Mayor recommend approval of this grant; and,
WHEREAS, it is beneficial and desirable to provide Homeless Management Information System
services through the Iowa Institute for Community Alliances for a twelve-month period.
NOW, THEREFORE, in consideration of these mutual covenants, the Iowa Institute for
Community Alliances and the City of Omaha do hereby agree as follows:
SECTION 1. DEFINITIONS-ABBREVIATIONS
1.1 "City" shall mean—the City of Omaha, a Nebraska Municipal Corporation.
1.2 "Contractor" shall mean — Iowa Institute for Community Alliances, an Iowa Non-profit
Corporation, 1111 9th Street, Des Moines, Iowa 50314 (see Exhibit"A").
1.3 "Director" shall mean—the Planning Department Director of the City of Omaha.
1.4 "Recipient" shall mean—the City of Omaha.
1.5 "Subrecipient" shall mean — a public or private non-profit agency, authority or
organization receiving Emergency Solutions Grant Program funds to undertake eligible
activities. In this Agreement, the subrecipient is the Iowa Institute for Community
Alliances Siena/Francis House.
-2-
d 12689)-No contract shall be made to parties listed on the General
Services Administration's List of Parties Excluded from Federal Procurement or Nonprocurement Programs in
accordance with E.O.s 12549 and 12689,"Debarment and Suspension."This list contains the names of parties
debarred,suspended,or otherwise excluded by agencies,and contractors declared ineligible under statutory or
regulatory authority other than E.O.12549.Contractors with awards that exceed the small purchase threshold shall
provide the required certification regarding its exclusion status and that of its principal employees.
Top of Page
Fri r';paii'.I i Arcr.ssitnl:ly :Copyright lnWnnat;rrl 'Pl�vacy r>nlicy r;nul�rt
USA quv I S,t.rnbrr Ir..FF5 Fix:rt< Appry tnr a./td;
•
•
http://wwvv.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
ted
violations to the Federal awarding agency.
http://www.whitehouse.gov/omb/circulars_a 1 10/ 7/16/2012
ount after fully considering the recommendations on disallowed costs
resulting from the final audit.
_.72 Subsequent adjustments and continuing responsibilities.
http://www.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
http://www.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
nts.
.51 Monitoring and reporting program performance.
(a)Recipients are responsible for managing and monitoring each project..program,subaward.function or activity
supported by the award.Recipients shall monitor subawards to ensure subrecipients have met the audit requirements
as delineated in Section_.26.
(b)The Federal awarding agency shall prescribe the frequency with which the performance reports shall be submitted.
Except as provided in paragraph_.51(f),performance reports shall not be required more frequently than quarterly
or.less frequently than annually.Annual reports shall be due 90 calendar days after the grant year:quarterly or semi-
hup://wvvvv.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
inancial data to performance data and develop unit
cost information whenever practical.
(b)Recipients'financial management systems shall provide for the following.
(1)Accurate,current and complete disclosure of the financial results of each federally-sponsored project or
program in accordance with the reporting requirements set forth in Section_.52.If a Federal awarding agency
requires reporting on an accrual basis from a recipient that maintains its records on other than an accrual basis,
the recipient shall not be required to establish an accrual accounting system.These recipients may develop such
accrual data for its reports on the basis of an analysis of the documentation on hand.
http://www.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20,2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible, homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
minations,excerpts,
governments)and 24 CFR part 84{for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
plicable. (b),and the provision on using document their compliance with the
Where a provider,pastoral counselor,or any that the applicant meets one or both of
1.6 "HUD" shall mean—the U.S. Department of Housing and Urban Development.
1.7 "Emergency Solutions Grant Program (ESGP)" shall mean — the program administered
by the City of Omaha and funded under Subtitle B of Title IV of the Stewart B.
McKinney Homeless Assistance Act (42 U.S.C. 11371 et seq.). The program purpose is
to provide assistance to homeless and near homeless persons in accordance with Federal
Regulations in 24 CFR Part 576, the program objectives, priorities, and strategies as
stated in the City of Omaha Program Guidelines, the Consolidated Submission for
Community Planning and Development, and the most recent ESGP Request for
Proposals.
1.8 "ESGP Funds" shall mean — the portion of the Emergency Solutions Grant Program
funds awarded to the City as may be available during Program Year 2012 for the use
specified herein, in an amount not to exceed $13,876.00, subject to the terms, conditions,
and requirements of said Grant. Availability of funds is subject to and conditioned upon
actual receipt of same, by the City of Omaha.
1.9 "Homeless Person" shall mean — an individual or family who lacks a fixed, regular, and
adequate nighttime residence; and an individual or family who has a primary nighttime
residence that is: 1) a supervised publicly or privately operated shelter designed to
provide temporary living accommodations (including welfare hotels, congregate shelters,
and transitional housing for the mentally ill), 2) an institution that provides a temporary
residence for individuals intended to be institutionalized, or 3) a public or private place
not designed for, or ordinarily used as a regular sleeping accommodation for human
beings.
1.10 "Grant" shall mean — non-repayable ESGP funds made subject to the terms, conditions
and provisions of the grant agreement under which said grant is made.
1.11 "Program Income" shall mean —gross income received by the Recipient or Subrecipient
directly generated from the use of ESGP funds. When such income is generated by an
activity that is only partially assisted with ESGP funds, the income shall be prorated to
reflect the percentage of ESGP funds used. (See Exhibit`B".)
1.12 "Facility" shall mean—the Iowa Institute for Community Alliances, 1111 9th Street, Des
Moines, Iowa 50314.
1.13 "ServicePoint" shall mean — an information management system developed by Bowman
Internet Systems in Shreveport, LA, permitting social service agencies to share data about
clients, resources, and services.
1.14 "Application" shall mean — The Iowa Institute for Community Alliances application
submission on the basis of which ESGP Funds were approved by the City, including any
certifications and assurances and any information or documentation required to meet any
ESGP Funds conditions. A copy of the Application is maintained as part of the ESGP
application by the City of Omaha Planning Department and incorporated herein by this
reference.
1.15 "Continuum of Care" shall mean —the coordinated and responsive network of programs
and services providing emergency, transitional, and supportive shelter and supportive
services to the Omaha area's homeless individuals and families, or near homeless
individuals and families.
-3 -
tains the names of parties
debarred,suspended,or otherwise excluded by agencies,and contractors declared ineligible under statutory or
regulatory authority other than E.O.12549.Contractors with awards that exceed the small purchase threshold shall
provide the required certification regarding its exclusion status and that of its principal employees.
Top of Page
Fri r';paii'.I i Arcr.ssitnl:ly :Copyright lnWnnat;rrl 'Pl�vacy r>nlicy r;nul�rt
USA quv I S,t.rnbrr Ir..FF5 Fix:rt< Appry tnr a./td;
•
•
http://wwvv.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
ted
violations to the Federal awarding agency.
http://www.whitehouse.gov/omb/circulars_a 1 10/ 7/16/2012
ount after fully considering the recommendations on disallowed costs
resulting from the final audit.
_.72 Subsequent adjustments and continuing responsibilities.
http://www.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
http://www.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
nts.
.51 Monitoring and reporting program performance.
(a)Recipients are responsible for managing and monitoring each project..program,subaward.function or activity
supported by the award.Recipients shall monitor subawards to ensure subrecipients have met the audit requirements
as delineated in Section_.26.
(b)The Federal awarding agency shall prescribe the frequency with which the performance reports shall be submitted.
Except as provided in paragraph_.51(f),performance reports shall not be required more frequently than quarterly
or.less frequently than annually.Annual reports shall be due 90 calendar days after the grant year:quarterly or semi-
hup://wvvvv.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
inancial data to performance data and develop unit
cost information whenever practical.
(b)Recipients'financial management systems shall provide for the following.
(1)Accurate,current and complete disclosure of the financial results of each federally-sponsored project or
program in accordance with the reporting requirements set forth in Section_.52.If a Federal awarding agency
requires reporting on an accrual basis from a recipient that maintains its records on other than an accrual basis,
the recipient shall not be required to establish an accrual accounting system.These recipients may develop such
accrual data for its reports on the basis of an analysis of the documentation on hand.
http://www.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20,2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible, homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
minations,excerpts,
governments)and 24 CFR part 84{for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
plicable. (b),and the provision on using document their compliance with the
Where a provider,pastoral counselor,or any that the applicant meets one or both of
1.16 "Contract Completion" shall mean — the complete expenditure of awarded funds, the
completion of the Scope of Work as defined in Exhibit "C", or the expiration of the time
frame of the Agreement, whichever comes first.
1.17 "Scope of Work" shall mean — the homeless management information services to be
provided ESG recipient programs for the term of this Agreement; this work is detailed in
Exhibit"C".
SECTION 2. DUTIES AND CONDITIONS OF CITY FINANCING
2.1 Subject to and conditioned upon actual receipt of same, the City agrees to make available
to the Contractor Thirteen Thousand Eight Hundred and Seventy-Six Dollars
($13,876.00) in ESGP Funds, for the purposes set forth in this Agreement, and as detailed
in Exhibit"C" Scope of Work, incorporated herein by this reference.
2.1.1 City funding pursuant to this Section shall be contingent upon receipt of and
subject to the availability of ESGP funds in amounts adequate to meet any
contractual obligations in force upon the date of execution of the Agreement as
well as this proposed obligation. Should adequate funding not be available,the
City shall notify the Contractor as soon as reasonably possible. At this time,
the responsibilities of the Contractor under Section 3 of this Agreement shall
be released, the provisions of Section 5, Paragraph 5.8 will be exercised and
the Agreement will be terminated.
2.1.2 Reimbursement shall be on a monthly basis for the attached budget line item
expenditures (see Exhibit "D"). Payments shall be made on the basis of
monthly requests for payment and shall be reimbursements for actual
expenditures.
2.1.3 Monthly billing will be submitted to the Director by the Iowa Institute for
Community Alliances with the monthly progress report. The monthly bill and
monthly progress report is due not later than twenty (20) days following each
monthly reporting period..
2.1.4 The City shall review and monitor the required monthly reports that identify
the progress/accomplishments of the Iowa Institute for Community Alliances
on the activities included in this Agreement and on contracts entered into with
third parties pursuant thereto.
2.1.5 The City shall prepare monthly payment vouchers for the Iowa Institute for
Community Alliances based upon the Contractor's monthly progress report and
request for payment.
2.1.6 No financial assistance provided pursuant to this Agreement may be used to
replace State or local funds previously used, or designated for use, to assist
homeless persons.
2.1.7 The City may deobligate the remaining amounts for services in any year if the
actual cost of services for that year is less than the total cost anticipated in the
Application.
-4-
g Department and incorporated herein by this
reference.
1.15 "Continuum of Care" shall mean —the coordinated and responsive network of programs
and services providing emergency, transitional, and supportive shelter and supportive
services to the Omaha area's homeless individuals and families, or near homeless
individuals and families.
-3 -
tains the names of parties
debarred,suspended,or otherwise excluded by agencies,and contractors declared ineligible under statutory or
regulatory authority other than E.O.12549.Contractors with awards that exceed the small purchase threshold shall
provide the required certification regarding its exclusion status and that of its principal employees.
Top of Page
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•
•
http://wwvv.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
ted
violations to the Federal awarding agency.
http://www.whitehouse.gov/omb/circulars_a 1 10/ 7/16/2012
ount after fully considering the recommendations on disallowed costs
resulting from the final audit.
_.72 Subsequent adjustments and continuing responsibilities.
http://www.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
http://www.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
nts.
.51 Monitoring and reporting program performance.
(a)Recipients are responsible for managing and monitoring each project..program,subaward.function or activity
supported by the award.Recipients shall monitor subawards to ensure subrecipients have met the audit requirements
as delineated in Section_.26.
(b)The Federal awarding agency shall prescribe the frequency with which the performance reports shall be submitted.
Except as provided in paragraph_.51(f),performance reports shall not be required more frequently than quarterly
or.less frequently than annually.Annual reports shall be due 90 calendar days after the grant year:quarterly or semi-
hup://wvvvv.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
inancial data to performance data and develop unit
cost information whenever practical.
(b)Recipients'financial management systems shall provide for the following.
(1)Accurate,current and complete disclosure of the financial results of each federally-sponsored project or
program in accordance with the reporting requirements set forth in Section_.52.If a Federal awarding agency
requires reporting on an accrual basis from a recipient that maintains its records on other than an accrual basis,
the recipient shall not be required to establish an accrual accounting system.These recipients may develop such
accrual data for its reports on the basis of an analysis of the documentation on hand.
http://www.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20,2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible, homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
minations,excerpts,
governments)and 24 CFR part 84{for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
plicable. (b),and the provision on using document their compliance with the
Where a provider,pastoral counselor,or any that the applicant meets one or both of
2.1.8 Eligible Contractors. Contractor shall submit to the Director a certificate
verifying that Contractor is an eligible recipient for federal funding, i.e., has
not been debarred or suspended by HUD. In addition, certification shall be
submitted to the Director from each contractor or subcontractor to be used on
the Project to the effect that each contractor or subcontractor has not been
debarred or disqualified by HUD (24 C.F.R. Part 5 and 24 C.F.R. 570.609 —
see Exhibit "K"). In addition, Contractor hereby certifies that it is in good
standing with the Department of Health and Human Services. The Director
shall approve all contractors and subcontractors prior to being hired by the
Contractor.
SECTION 3. DUTIES AND RESPONSIBILITIES OF THE CONTRACTOR
PROJECT PERFORMANCE
3.1 The Contractor shall use the ESGP Funds ($13,876.00) solely and exclusively for the
express purpose of continuing its services to homeless persons in accordance with Exhibit
"C", Scope of Work.
REPORTING
3.2 The Contractor shall submit a monthly progress report to the Director delineating the
accomplishments of the Iowa Institute for Community Alliances for the previous 30-day
period on the specific activities undertaken pursuant to this Agreement. Monthly
progress reports shall contain information as detailed in Exhibit "C", Scope of Work,
item 4.
3.3 The Contractor shall submit a monthly Reimbursement Request to the Director detailing
the operational expenses for which the Iowa Institute for Community Alliances is seeking
reimbursement. Eligible operational expenses are identified in Exhibit "C", Scope of
Work. Invoices along with evidence that the invoices have been paid, i.e., a check
register listing each expenditure by check number, payee, date and amount, is to be
submitted.
FINANCIAL MANAGEMENT
3.4 Audit. The Contractor shall comply with all provisions and regulations of the Emergency
Solutions Grant Program and have an annual audit completed in compliance with OMB
Circular A-133. A copy of the audit shall be provided to the Director. OMB Circular A-
133 is attached to this Agreement as Exhibit "E". The auditor shall determine the
appropriate type of audit to be conducted; i.e., limited scope or full compliance. A single
audit is not an allowable expense unless the Contractor expends total Federal funds over
$500,000.00 in each fiscal year. A limited-scope audit may be allowable provided the
auditor conducts the audit in accordance with generally accepted auditing standards and
the Contractor's expense is less than$500,000.00 in each fiscal year.
3.4.1 Any deficiencies noted in audit reports must be fully cleared by the Contractor
within 30 days after receipt of audit by the Contractor. Failure of the
Contractor to comply with the above audit requirements will constitute a
violation of this Agreement and may result in the withholding of future
payments and may constitute a default subject to termination according to
Section 5-8 referenced herein.
-5 -
area's homeless individuals and families, or near homeless
individuals and families.
-3 -
tains the names of parties
debarred,suspended,or otherwise excluded by agencies,and contractors declared ineligible under statutory or
regulatory authority other than E.O.12549.Contractors with awards that exceed the small purchase threshold shall
provide the required certification regarding its exclusion status and that of its principal employees.
Top of Page
Fri r';paii'.I i Arcr.ssitnl:ly :Copyright lnWnnat;rrl 'Pl�vacy r>nlicy r;nul�rt
USA quv I S,t.rnbrr Ir..FF5 Fix:rt< Appry tnr a./td;
•
•
http://wwvv.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
ted
violations to the Federal awarding agency.
http://www.whitehouse.gov/omb/circulars_a 1 10/ 7/16/2012
ount after fully considering the recommendations on disallowed costs
resulting from the final audit.
_.72 Subsequent adjustments and continuing responsibilities.
http://www.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
http://www.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
nts.
.51 Monitoring and reporting program performance.
(a)Recipients are responsible for managing and monitoring each project..program,subaward.function or activity
supported by the award.Recipients shall monitor subawards to ensure subrecipients have met the audit requirements
as delineated in Section_.26.
(b)The Federal awarding agency shall prescribe the frequency with which the performance reports shall be submitted.
Except as provided in paragraph_.51(f),performance reports shall not be required more frequently than quarterly
or.less frequently than annually.Annual reports shall be due 90 calendar days after the grant year:quarterly or semi-
hup://wvvvv.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
inancial data to performance data and develop unit
cost information whenever practical.
(b)Recipients'financial management systems shall provide for the following.
(1)Accurate,current and complete disclosure of the financial results of each federally-sponsored project or
program in accordance with the reporting requirements set forth in Section_.52.If a Federal awarding agency
requires reporting on an accrual basis from a recipient that maintains its records on other than an accrual basis,
the recipient shall not be required to establish an accrual accounting system.These recipients may develop such
accrual data for its reports on the basis of an analysis of the documentation on hand.
http://www.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20,2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible, homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
minations,excerpts,
governments)and 24 CFR part 84{for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
plicable. (b),and the provision on using document their compliance with the
Where a provider,pastoral counselor,or any that the applicant meets one or both of
3.5 Accounting Standards. The Contractor agrees to comply with OMB Circular A-110 and
agrees to adhere to the accounting principles and procedures required therein, utilize
adequate internal controls, and maintain necessary source documentation for all costs
incurred. (Exhibit"J", attached hereto and incorporated herein as though fully set forth.)
3.6 Cost Principals. The Contractor shall comply with the requirements and the standards of
OMB Circular No. A-122, "Cost Principles for Nonprofit Organizations" (Exhibit "P"),
and with the requirements of OMB Circular A-110 (Exhibit "J"). Both Exhibits are
attached hereto and incorporated herein as though fully set forth.
3.7 Release of Information. The Contractor specifically hereby states, agrees and certifies
that it is familiar with the limited purpose set forth in the Federal Laws, Rules and
Regulations, and in the laws of the State of Nebraska, for which personal information
requested may be used and that the information received will be used solely for those
limited purposes and not to harass, degrade or humiliate any person. The information
released shall be used solely for the limited purpose stated, and the Contractor further
agrees to indemnify and hold harmless the City of Omaha for any liability arising out of
the improper use by the Contractor of information provided.
3.8 Documentation & Record-Keeping. The Contractor shall maintain such records and
accounts, including property, personnel and financial records, as are deemed necessary by
the City to assure a proper accounting for all expenses. The Comptroller General of the
United States of America or any duly authorized representatives, or any duly authorized
representatives of the City of Omaha, as approved by the Planning Director, shall have
access to any books, documents, papers, records and accounts of the Contractor or
subcontractors which are directly pertinent to this undertaking for the purpose of making
audit, examination, excerpts and transcriptions. Such records and accounts shall be
retained for five years from the Contract Completion. Any contract entered into by the
Contractor with any Subcontractors shall include this Section to ensure said access.
3.8.1 The Contractor shall keep any records and make any reports (including those
pertaining to race, ethnicity, gender, and disability status) that HUD may require
within the time frame required.
3.9 Homeless Participation in Project. The Contractor must, to the maximum extent
practicable, involve homeless individuals and families, through employment, volunteer
services, or otherwise, in constructing, rehabilitating, maintaining, and operating the
project and in providing supportive services for the project.
3.10 Continuum of Care Requirements. The Contractor shall regularly and reliably attend
Metro Area Continuum of Care for the Homeless (MACCH) monthly meetings, ensure
that all program information is listed in the MACCH Directory, participate in the
MACCH client feedback process, install and implement the ServicePoint System as
defined in Section 1.13., ensure that all relevant staff are utilizing the MACCH Listserve,
pay on a timely basis annual MACCH dues, and participate in the MACCH monthly
housing count(as applicable).
3.11 Matching Requirement: The Contractor will provide enough match to not only equal its
grant allocation ($13,876.00) but an additional proportional amount that will allow the
entire match requirement of the City of Omaha ESGP allocation to be met. (See Exhibit
"C", Scope of Work, for the amount of"matching dollars" required by this grant - Item
2.)
-6-
ght lnWnnat;rrl 'Pl�vacy r>nlicy r;nul�rt
USA quv I S,t.rnbrr Ir..FF5 Fix:rt< Appry tnr a./td;
•
•
http://wwvv.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
ted
violations to the Federal awarding agency.
http://www.whitehouse.gov/omb/circulars_a 1 10/ 7/16/2012
ount after fully considering the recommendations on disallowed costs
resulting from the final audit.
_.72 Subsequent adjustments and continuing responsibilities.
http://www.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
http://www.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
nts.
.51 Monitoring and reporting program performance.
(a)Recipients are responsible for managing and monitoring each project..program,subaward.function or activity
supported by the award.Recipients shall monitor subawards to ensure subrecipients have met the audit requirements
as delineated in Section_.26.
(b)The Federal awarding agency shall prescribe the frequency with which the performance reports shall be submitted.
Except as provided in paragraph_.51(f),performance reports shall not be required more frequently than quarterly
or.less frequently than annually.Annual reports shall be due 90 calendar days after the grant year:quarterly or semi-
hup://wvvvv.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
inancial data to performance data and develop unit
cost information whenever practical.
(b)Recipients'financial management systems shall provide for the following.
(1)Accurate,current and complete disclosure of the financial results of each federally-sponsored project or
program in accordance with the reporting requirements set forth in Section_.52.If a Federal awarding agency
requires reporting on an accrual basis from a recipient that maintains its records on other than an accrual basis,
the recipient shall not be required to establish an accrual accounting system.These recipients may develop such
accrual data for its reports on the basis of an analysis of the documentation on hand.
http://www.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20,2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible, homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
minations,excerpts,
governments)and 24 CFR part 84{for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
plicable. (b),and the provision on using document their compliance with the
Where a provider,pastoral counselor,or any that the applicant meets one or both of
SECTION 4. TERM OF THE AGREEMENT
This Agreement shall be in full force and effect from July 1, 2012 through and including June 30,
2013. The Director may extend the term of this Agreement or adjust the term to coincide with actual
expenditure start dates to facilitate the complete expenditure of funds. In no event shall the term be
extended beyond December 31, 2013.
SECTION 5. MUTUAL AGREEMENTS BETWEEN CITY AND CONTRACTOR
5.1 Captions. Captions used in this Agreement are for convenience and are not used in the
construction of this Agreement.
5.2 Applicable Law. Parties to this Agreement shall conform with all existing and applicable
City ordinances, resolutions, state laws, federal laws, and all existing and applicable rules
and regulations. Nebraska law will govern the terms and the performance under this
Agreement.
5.3 Interest of the City. Pursuant to Section 8.05 of the Home Rule Charter, no elected
official or any officer or employee of the City shall have a financial interest, direct or
indirect, in any City agreement. Any violation of this section with the knowledge of the
person or corporation contracting with the City shall render the Agreement voidable by
the Mayor or Council.
5.4 Merger. This Agreement shall not be merged into any other oral or written agreement,
lease or deed of any type.
5.5 Modification. This Agreement contains the entire agreement of the parties. No
representations were made or relied upon by either party other than those that are
expressly set forth herein. No agent, employee, or other representative of either party is
empowered to alter any of the terms herein unless done in writing and signed by an
authorized officer of the respective parties, pursuant to Section 10-142 of the Omaha
Municipal Code.
5.6 Assignment. The Contractor may not assign its rights or obligations under this
Agreement without the express prior written consent of the City.
5.7 Strict Compliance. All provisions of this Agreement and each and every document that
shall be attached shall be strictly complied with as written, and no substitution or change
shall be made except upon written direction from authorized representatives of the
parties.
5.8 Termination. This Agreement may be terminated by either party upon thirty (30) days
written notice to the other party. Said notice shall be given when received by certified
mail at the other parry's usual place of business. This Agreement may also be suspended
or terminated in accordance with 24 C.F.R. 85.43, Enforcement or 24 C.F.R. 85.44,
Termination for Convenience (Exhibit "H"). Upon termination of this Agreement all
funds and interest in any account hereunder shall become the property of the City and
shall be returned to the City.
-7 -
or shall regularly and reliably attend
Metro Area Continuum of Care for the Homeless (MACCH) monthly meetings, ensure
that all program information is listed in the MACCH Directory, participate in the
MACCH client feedback process, install and implement the ServicePoint System as
defined in Section 1.13., ensure that all relevant staff are utilizing the MACCH Listserve,
pay on a timely basis annual MACCH dues, and participate in the MACCH monthly
housing count(as applicable).
3.11 Matching Requirement: The Contractor will provide enough match to not only equal its
grant allocation ($13,876.00) but an additional proportional amount that will allow the
entire match requirement of the City of Omaha ESGP allocation to be met. (See Exhibit
"C", Scope of Work, for the amount of"matching dollars" required by this grant - Item
2.)
-6-
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USA quv I S,t.rnbrr Ir..FF5 Fix:rt< Appry tnr a./td;
•
•
http://wwvv.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
ted
violations to the Federal awarding agency.
http://www.whitehouse.gov/omb/circulars_a 1 10/ 7/16/2012
ount after fully considering the recommendations on disallowed costs
resulting from the final audit.
_.72 Subsequent adjustments and continuing responsibilities.
http://www.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
http://www.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
nts.
.51 Monitoring and reporting program performance.
(a)Recipients are responsible for managing and monitoring each project..program,subaward.function or activity
supported by the award.Recipients shall monitor subawards to ensure subrecipients have met the audit requirements
as delineated in Section_.26.
(b)The Federal awarding agency shall prescribe the frequency with which the performance reports shall be submitted.
Except as provided in paragraph_.51(f),performance reports shall not be required more frequently than quarterly
or.less frequently than annually.Annual reports shall be due 90 calendar days after the grant year:quarterly or semi-
hup://wvvvv.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
inancial data to performance data and develop unit
cost information whenever practical.
(b)Recipients'financial management systems shall provide for the following.
(1)Accurate,current and complete disclosure of the financial results of each federally-sponsored project or
program in accordance with the reporting requirements set forth in Section_.52.If a Federal awarding agency
requires reporting on an accrual basis from a recipient that maintains its records on other than an accrual basis,
the recipient shall not be required to establish an accrual accounting system.These recipients may develop such
accrual data for its reports on the basis of an analysis of the documentation on hand.
http://www.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20,2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible, homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
minations,excerpts,
governments)and 24 CFR part 84{for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
plicable. (b),and the provision on using document their compliance with the
Where a provider,pastoral counselor,or any that the applicant meets one or both of
5.9 Reversion of Assets. Upon the expiration of this Agreement the Contractor shall transfer
to the City of Omaha any ESGP funds on hand at the time of expiration and any accounts
receivable attributable to the use of ESGP funds. Additionally, the Contractor shall
ensure that any real property under the Contractor's control that was acquired or
improved in whole or in part with ESGP funds in excess of$25,000.00 is either:
(i) Used to meet one of the national objectives in 24 CFR 570.208 until five
years after expiration of the Agreement, or such longer period of time as
determined appropriate by the City; or,
(ii) Is disposed of in a manner which results in the City being reimbursed in
the amount of the current fair market value of the property less any
portion thereof attributable to expenditures of non-ESGP funds for
acquisition of, or improvement to, the property. Such reimbursement is
not required after the period of time specified in accordance with (i)
above.
5.10 Indemnification. The Contractor shall indemnify and hold the City harmless from and
against: (1) any and all claims arising from contracts between the Contractor and third
parties made to effectuate the purposes of this Agreement; and, (2) any and all claims,
liabilities or damages arising from the preparation or presentation of any of the work
covered by this Agreement.
5.11 Unenforceable Provisions. Any provision of this Agreement which is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent
of such prohibition of enforceability without invalidating the remaining provisions hereof
or affecting the validity or enforceability of such provision in any other jurisdiction.
5.12 Disclosure of Lobbying. The Contractor shall certify and disclose, to the best of its
knowledge and belief,that:
(a) No Federal appropriated funds have been paid or will be paid, by or on behalf of
the Contractor, to any person for influencing or attempting to influence an officer
or employee of Congress, or an employee of a Member of Congress in
connection with the awarding of any Federal contract, the making of any Federal
grant, the making of any Federal loan, the entering into of any cooperative
agreement, and the extension, continuation, renewal, amendment or modification
of any Federal contract, grant, loan,or cooperative agreement.
(b) If any funds other than Federal appropriated funds have been paid or will be paid
to any person for influencing or attempting to influence an officer or employee of
any agency, a Member of Congress, an officer or employee of Congress, or an
employee of a Member of Congress in connection with this Federal contract,
grant, loan, or cooperative agreement, the Contractor shall complete and submit
Standard Form-LLL, "Disclosure Form to Report Lobbying", in accordance with
its instructions.
(c) The language of this certification is to be included in the award documents for all
subawards at all tiers, (including subcontracts, subgrants, and contracts under
grants, loans, and cooperative agreements) and all subrecipients shall certify and
disclose accordingly.
-8 -
equirement: The Contractor will provide enough match to not only equal its
grant allocation ($13,876.00) but an additional proportional amount that will allow the
entire match requirement of the City of Omaha ESGP allocation to be met. (See Exhibit
"C", Scope of Work, for the amount of"matching dollars" required by this grant - Item
2.)
-6-
ght lnWnnat;rrl 'Pl�vacy r>nlicy r;nul�rt
USA quv I S,t.rnbrr Ir..FF5 Fix:rt< Appry tnr a./td;
•
•
http://wwvv.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
ted
violations to the Federal awarding agency.
http://www.whitehouse.gov/omb/circulars_a 1 10/ 7/16/2012
ount after fully considering the recommendations on disallowed costs
resulting from the final audit.
_.72 Subsequent adjustments and continuing responsibilities.
http://www.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
http://www.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
nts.
.51 Monitoring and reporting program performance.
(a)Recipients are responsible for managing and monitoring each project..program,subaward.function or activity
supported by the award.Recipients shall monitor subawards to ensure subrecipients have met the audit requirements
as delineated in Section_.26.
(b)The Federal awarding agency shall prescribe the frequency with which the performance reports shall be submitted.
Except as provided in paragraph_.51(f),performance reports shall not be required more frequently than quarterly
or.less frequently than annually.Annual reports shall be due 90 calendar days after the grant year:quarterly or semi-
hup://wvvvv.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
inancial data to performance data and develop unit
cost information whenever practical.
(b)Recipients'financial management systems shall provide for the following.
(1)Accurate,current and complete disclosure of the financial results of each federally-sponsored project or
program in accordance with the reporting requirements set forth in Section_.52.If a Federal awarding agency
requires reporting on an accrual basis from a recipient that maintains its records on other than an accrual basis,
the recipient shall not be required to establish an accrual accounting system.These recipients may develop such
accrual data for its reports on the basis of an analysis of the documentation on hand.
http://www.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20,2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible, homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
minations,excerpts,
governments)and 24 CFR part 84{for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
plicable. (b),and the provision on using document their compliance with the
Where a provider,pastoral counselor,or any that the applicant meets one or both of
5.13 Subrecipients. The Contractor shall comply with the requirements and the standards of
OMB Circular No. A-122, "Cost Principles for Nonprofit Organizations" (Exhibit "1"),
and with the requirements of OMB Circular A-110(Exhibit"J").
5.14 Personnel and Participant Conditions.
5.14.1 Contract Compliance Clause.
5.14.1.1 Section 10-192 of the Omaha Municipal Code, Equal Employment
Opportunity Clause. The Contractor and its contractors shall not
discriminate against any employee or applicant for employment
because of race, religion, color, sex, age, sexual orientation, gender
identity, national origin, familial or handicap status. As used
herein, the word "treated" shall mean and include, without
limitation, the following: recruited, whether by advertising or by
other means; compensated; selected for training, including
apprenticeship; promoted; upgraded; demoted; downgraded;
transferred; laid off; and terminated. The Contractor and its
contractors agree to and shall post in conspicuous places, available
to employees and applicants for employment, notices to be
provided by the contracting officers setting forth the provisions of
this nondiscrimination clause(Exhibit"F").
5.14.1.2 The Contractor and its contractors or subcontractors shall, in all
solicitations or advertisements for employees placed by or on
behalf of the contractor, state that all qualified applicants will
receive consideration for employment without regard to race,
religion, color, sex, age, sexual orientation, gender identity,
national origin, familial or handicap status.
5.14.1.3 The Contractor and its contractors or subcontractors shall send to
each representative of workers with which he has a collective
bargaining agreement or other contract or understanding a notice
advising the labor union or workers' representative of the
contractor's commitments under the equal employment opportunity
clause of the city and shall post copies of the notice in conspicuous
places available to employees and applicants for employment.
5.14.1.4 The Contractor and its contractors or subcontractors shall furnish
to the Human Rights and Relations Director all federal forms
containing the information and reports required by the federal
government for federal contracts under federal rules and
regulations, including the information required by sections 10-192
to 10-194, inclusive, of the Omaha Municipal Code and shall
permit reasonable access to his records. Records accessible to the
Human Rights and Relations Director shall be those which related
to paragraphs 5.14.1.1 through 5.14.1.7 of this subsection and only
after reasonable notice is given the contractor. The purpose of this
provision is to provide for investigation to ascertain compliance
with the program provided herein.
-9-
grants, loans, and cooperative agreements) and all subrecipients shall certify and
disclose accordingly.
-8 -
equirement: The Contractor will provide enough match to not only equal its
grant allocation ($13,876.00) but an additional proportional amount that will allow the
entire match requirement of the City of Omaha ESGP allocation to be met. (See Exhibit
"C", Scope of Work, for the amount of"matching dollars" required by this grant - Item
2.)
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ted
violations to the Federal awarding agency.
http://www.whitehouse.gov/omb/circulars_a 1 10/ 7/16/2012
ount after fully considering the recommendations on disallowed costs
resulting from the final audit.
_.72 Subsequent adjustments and continuing responsibilities.
http://www.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
http://www.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
nts.
.51 Monitoring and reporting program performance.
(a)Recipients are responsible for managing and monitoring each project..program,subaward.function or activity
supported by the award.Recipients shall monitor subawards to ensure subrecipients have met the audit requirements
as delineated in Section_.26.
(b)The Federal awarding agency shall prescribe the frequency with which the performance reports shall be submitted.
Except as provided in paragraph_.51(f),performance reports shall not be required more frequently than quarterly
or.less frequently than annually.Annual reports shall be due 90 calendar days after the grant year:quarterly or semi-
hup://wvvvv.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
inancial data to performance data and develop unit
cost information whenever practical.
(b)Recipients'financial management systems shall provide for the following.
(1)Accurate,current and complete disclosure of the financial results of each federally-sponsored project or
program in accordance with the reporting requirements set forth in Section_.52.If a Federal awarding agency
requires reporting on an accrual basis from a recipient that maintains its records on other than an accrual basis,
the recipient shall not be required to establish an accrual accounting system.These recipients may develop such
accrual data for its reports on the basis of an analysis of the documentation on hand.
http://www.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20,2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible, homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
minations,excerpts,
governments)and 24 CFR part 84{for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
plicable. (b),and the provision on using document their compliance with the
Where a provider,pastoral counselor,or any that the applicant meets one or both of
5.14.1.5 The Contractor and its contractors or subcontractors shall take such
actions with respect to any subcontractor as the City may direct as
a means of enforcing the provisions of paragraphs 5.14.1.1 through
5.14.1.7 herein, including penalties and sanctions for
noncompliance; however, in the event the contractor becomes
involved in or is threatened with litigation as the result of such
directions by the City, the City will enter into such litigation as is
necessary to protect the interests of the City and to effectuate the
provisions of this division, and, in the case of contracts receiving
federal assistance, the contractor or the City may request the
United States to enter into such litigation to protect the interests of
the United States.
5.14.1.6 The Contractor and its contractors shall file and shall cause his
subcontractors, if any, to file compliance reports with the
Contractor's contractor in the same form and to the extent as
required by the federal government for federal contracts under
federal rules and regulations. Such compliance reports shall be
• filed with the City's Human Rights and Relations Director.
Compliance reports filed at such times as directed shall contain
information as to the employment practices, policies, programs and
statistics of the Contractor and its subcontractors.
5.14.1.7 The Contractor and its contractors or subcontractors shall include
the provisions of Paragraphs 5.14.1.1 through 5.14.1.7 of this
section, "Equal Employment Opportunity Clause", and Section 10-
193 in every contract, subcontract or purchase order so that such
provisions will be binding upon each subcontractor or vendor.
(Code 1980, Section 10-192; Ord.No. 35344, Sections 1, 9-26-00).
5.14.2 Workers' Compensation. The Contractor shall provide Workers'
Compensation Insurance coverage for all employees involved in the
performance in this Agreement.
5.14.3 Minority Business/Women Business Enterprise Plan. The Contractor shall
make its best efforts to ensure that construction services, contracts and
employment opportunities are affirmatively marketed to women and members
of minority groups. As used in this Agreement,the term "women and members
of minority groups" means a business at least fifty-one percent (51%) owned
and controlled by minority group members or women.
5.14.4 Section 3 -Employment of Low-Income Persons (Section 3 of HUD Act of 68,
as amended, 1 U.S.C. 1701u). The Contractor shall make its best efforts to
comply with Section 3. The purpose of Section 3 is to ensure that employment
and other economic opportunities generated by HUD assistance or HUD-
assisted projects covered by Section 3 shall, to the greatest extent feasible, be
directed to low- and very low-income persons, particularly persons who are
recipients of HUD assistance for housing. (Exhibit"G")
- 10-
ements) and all subrecipients shall certify and
disclose accordingly.
-8 -
equirement: The Contractor will provide enough match to not only equal its
grant allocation ($13,876.00) but an additional proportional amount that will allow the
entire match requirement of the City of Omaha ESGP allocation to be met. (See Exhibit
"C", Scope of Work, for the amount of"matching dollars" required by this grant - Item
2.)
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USA quv I S,t.rnbrr Ir..FF5 Fix:rt< Appry tnr a./td;
•
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ted
violations to the Federal awarding agency.
http://www.whitehouse.gov/omb/circulars_a 1 10/ 7/16/2012
ount after fully considering the recommendations on disallowed costs
resulting from the final audit.
_.72 Subsequent adjustments and continuing responsibilities.
http://www.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
http://www.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
nts.
.51 Monitoring and reporting program performance.
(a)Recipients are responsible for managing and monitoring each project..program,subaward.function or activity
supported by the award.Recipients shall monitor subawards to ensure subrecipients have met the audit requirements
as delineated in Section_.26.
(b)The Federal awarding agency shall prescribe the frequency with which the performance reports shall be submitted.
Except as provided in paragraph_.51(f),performance reports shall not be required more frequently than quarterly
or.less frequently than annually.Annual reports shall be due 90 calendar days after the grant year:quarterly or semi-
hup://wvvvv.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
inancial data to performance data and develop unit
cost information whenever practical.
(b)Recipients'financial management systems shall provide for the following.
(1)Accurate,current and complete disclosure of the financial results of each federally-sponsored project or
program in accordance with the reporting requirements set forth in Section_.52.If a Federal awarding agency
requires reporting on an accrual basis from a recipient that maintains its records on other than an accrual basis,
the recipient shall not be required to establish an accrual accounting system.These recipients may develop such
accrual data for its reports on the basis of an analysis of the documentation on hand.
http://www.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20,2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible, homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
minations,excerpts,
governments)and 24 CFR part 84{for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
plicable. (b),and the provision on using document their compliance with the
Where a provider,pastoral counselor,or any that the applicant meets one or both of
5.14.5 Conflict of Interest. The Contractor agrees to abide by the provisions of 24
C.F.R. 92.356 with respect to conflicts of interest, and covenants that it
presently has financial interest and shall not acquire any financial interest,
direct or indirect, which would conflict in any manner or degree with the
performance of services required under this Agreement. The Contractor further
covenants that in the performance of this Agreement no person having such a
financial interest shall be employed or retained by the Contractor hereunder.
These conflict of interest provisions apply to any person who is an employee,
agent, consultant, officer or elected official or appointed official of the City or
any designated public agencies or Subrecipients which are receiving funds
under the entitlement program.
SECTION 6. CONTRACTOR'S COMPLIANCE WITH OTHER FEDERAL REGULATIONS
6.1 Environmental Review. The Developer agrees to comply with the following regulations
insofar as they apply to the performance of this Agreement:
6.1.1 Clean Air Act,42,U.S.C., 1857, et seq.
6.1.2 Federal Water Pollution Control Act, as amended, 33 U.S.C. 1251, et seq., as
amended 1318 relating to inspection, monitoring entry, reports and information
as well as other requirements specified in Section 114 and Section 308, and all
regulations and guidelines issued thereunder.
6.1.3 Environmental Protection Agency(EPA)regulations pursuant to 40 C.F.R. Part
50, as amended.
6.1.4 National Environmental Policy Act of 1969.
6.1.5 HUD Environmental Review Procedures(24 C.F.R. Part 58).
6.1.6 Flood Disaster Protection Act of 1973 (24 U.S.C. 4106 and P.L. 2234) in
regard to the sale, lease or other transfer of land acquired, cleared or improved
under the terms of the Agreement as it may apply to provisions of this
Agreement.
6.1.7 Lead-Based Paint Regulations at 24 C.F.R. 570.608 and 24 C.F.R. Part 35 and
in particular Sub-Part B thereof. Such regulations pertain to all HUD-assisted
housing and require that all owners, prospective owners and tenants of
properties constructed prior to 1978 be properly notified that such properties
may include lead-based paint and require specific treatments according to the
amount of HUD funding allocated to the Project.
•
6.1.8 Historic Preservation requirements set forth in the National Historic
Preservation Act of 1966, as amended (16 U.S.C. 470) and the procedures set
forth in 36 C.F.R., Part 800, Advisory Council on Historic Preservation
Procedures for Protection of Historic Properties, insofar as they apply to the
performance of this Agreement. In general, this requires concurrence from the
State Historic Preservation Office for all rehabilitation and demolition of
historic properties that are 45 years old or older or that are included on a
Federal, State or local historic property list.
- 11 -
ns, particularly persons who are
recipients of HUD assistance for housing. (Exhibit"G")
- 10-
ements) and all subrecipients shall certify and
disclose accordingly.
-8 -
equirement: The Contractor will provide enough match to not only equal its
grant allocation ($13,876.00) but an additional proportional amount that will allow the
entire match requirement of the City of Omaha ESGP allocation to be met. (See Exhibit
"C", Scope of Work, for the amount of"matching dollars" required by this grant - Item
2.)
-6-
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•
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http://wwvv.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
ted
violations to the Federal awarding agency.
http://www.whitehouse.gov/omb/circulars_a 1 10/ 7/16/2012
ount after fully considering the recommendations on disallowed costs
resulting from the final audit.
_.72 Subsequent adjustments and continuing responsibilities.
http://www.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
http://www.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
nts.
.51 Monitoring and reporting program performance.
(a)Recipients are responsible for managing and monitoring each project..program,subaward.function or activity
supported by the award.Recipients shall monitor subawards to ensure subrecipients have met the audit requirements
as delineated in Section_.26.
(b)The Federal awarding agency shall prescribe the frequency with which the performance reports shall be submitted.
Except as provided in paragraph_.51(f),performance reports shall not be required more frequently than quarterly
or.less frequently than annually.Annual reports shall be due 90 calendar days after the grant year:quarterly or semi-
hup://wvvvv.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
inancial data to performance data and develop unit
cost information whenever practical.
(b)Recipients'financial management systems shall provide for the following.
(1)Accurate,current and complete disclosure of the financial results of each federally-sponsored project or
program in accordance with the reporting requirements set forth in Section_.52.If a Federal awarding agency
requires reporting on an accrual basis from a recipient that maintains its records on other than an accrual basis,
the recipient shall not be required to establish an accrual accounting system.These recipients may develop such
accrual data for its reports on the basis of an analysis of the documentation on hand.
http://www.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20,2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible, homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
minations,excerpts,
governments)and 24 CFR part 84{for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
plicable. (b),and the provision on using document their compliance with the
Where a provider,pastoral counselor,or any that the applicant meets one or both of
6.2 Uniform Relocation Act. The Developer shall comply with the applicable regulations of
the Uniform Relocation Act of 1970, as amended (URA) (42 U.S.C. 4601-4655), or
Section 104 (d) of the Housing and Community Development Act of 1974, as amended
(Section 104 (d)), which require relocation assistance be provided to resident Developers,
tenants, businesses and other occupants that are displaced as a result of a federally-
assisted project. In the event that the Developer or its agent displaces any tenant-
occupant of the property, it shall immediately notify the City in writing of the
circumstances surrounding said displacement and comply with 24 C.F.R. 92.353.
6.3 Accessibility Requirements. The Contractor must comply with The Fair Housing Act and
with Section 504 of the Rehabilitation Act of 1973 in the provision of reasonable
accommodation to prospective clients and must adopt procedures to make available
information on the existence and locations of facilities and services that are accessible to
persons with a handicap and maintain evidence of implementation of the procedures.
6.4 Non-Discrimination. The Contractor shall not, in the performance of this Agreement,
discriminate or permit discrimination in violation of federal or state laws or local
ordinances because of race, color, handicap, familial status, marital status, sex, age,
political or religious opinions, affiliations or national origin.
6.5 Remedies. If,through any cause, the Contractor shall fail to fulfill in a timely and proper
manner any obligations under this Agreement, or violate any of the covenants,
representations or agreements hereof, the City may upon written notice terminate this
Agreement or such parts thereof as to this Agreement, and may hold the Contractor
liable, to the extent permitted by Nebraska Law, for any damages caused to the City by
reasons of such default and termination.
- 12 -
nt.
6.1.7 Lead-Based Paint Regulations at 24 C.F.R. 570.608 and 24 C.F.R. Part 35 and
in particular Sub-Part B thereof. Such regulations pertain to all HUD-assisted
housing and require that all owners, prospective owners and tenants of
properties constructed prior to 1978 be properly notified that such properties
may include lead-based paint and require specific treatments according to the
amount of HUD funding allocated to the Project.
•
6.1.8 Historic Preservation requirements set forth in the National Historic
Preservation Act of 1966, as amended (16 U.S.C. 470) and the procedures set
forth in 36 C.F.R., Part 800, Advisory Council on Historic Preservation
Procedures for Protection of Historic Properties, insofar as they apply to the
performance of this Agreement. In general, this requires concurrence from the
State Historic Preservation Office for all rehabilitation and demolition of
historic properties that are 45 years old or older or that are included on a
Federal, State or local historic property list.
- 11 -
ns, particularly persons who are
recipients of HUD assistance for housing. (Exhibit"G")
- 10-
ements) and all subrecipients shall certify and
disclose accordingly.
-8 -
equirement: The Contractor will provide enough match to not only equal its
grant allocation ($13,876.00) but an additional proportional amount that will allow the
entire match requirement of the City of Omaha ESGP allocation to be met. (See Exhibit
"C", Scope of Work, for the amount of"matching dollars" required by this grant - Item
2.)
-6-
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USA quv I S,t.rnbrr Ir..FF5 Fix:rt< Appry tnr a./td;
•
•
http://wwvv.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
ted
violations to the Federal awarding agency.
http://www.whitehouse.gov/omb/circulars_a 1 10/ 7/16/2012
ount after fully considering the recommendations on disallowed costs
resulting from the final audit.
_.72 Subsequent adjustments and continuing responsibilities.
http://www.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
http://www.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
nts.
.51 Monitoring and reporting program performance.
(a)Recipients are responsible for managing and monitoring each project..program,subaward.function or activity
supported by the award.Recipients shall monitor subawards to ensure subrecipients have met the audit requirements
as delineated in Section_.26.
(b)The Federal awarding agency shall prescribe the frequency with which the performance reports shall be submitted.
Except as provided in paragraph_.51(f),performance reports shall not be required more frequently than quarterly
or.less frequently than annually.Annual reports shall be due 90 calendar days after the grant year:quarterly or semi-
hup://wvvvv.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
inancial data to performance data and develop unit
cost information whenever practical.
(b)Recipients'financial management systems shall provide for the following.
(1)Accurate,current and complete disclosure of the financial results of each federally-sponsored project or
program in accordance with the reporting requirements set forth in Section_.52.If a Federal awarding agency
requires reporting on an accrual basis from a recipient that maintains its records on other than an accrual basis,
the recipient shall not be required to establish an accrual accounting system.These recipients may develop such
accrual data for its reports on the basis of an analysis of the documentation on hand.
http://www.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20,2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible, homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
minations,excerpts,
governments)and 24 CFR part 84{for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
plicable. (b),and the provision on using document their compliance with the
Where a provider,pastoral counselor,or any that the applicant meets one or both of
SECTION 7. AUTHORIZED REPRESENTATIVES
In further consideration of the mutual covenants herein contained, the parties hereto expressly
agree that for the purposes of notice, including legal service of process, during the term of this
Agreement, and for the period of any applicable statute or limitations thereafter, the following named
individuals shall be authorized representatives of the parties:
(1) City of Omaha
Director, Planning Department
Omaha/Douglas Civic Center
1819 Farnam Street
Omaha,NE 68183
(2) Iowa Institute for Community Alliances
David Discher
Executive Director
1111 9th Street
Des Moines, Iowa 50314
IN WITNESS WHEREOF, the parties have executed this Agreement as of the dates indicated
below.
ATTEST: CITY OF OMAHA:
CI CLERK OF THE CITY OF OMAHA 7% • OR . T I CI OF OMAHA
•—. 7174,764 /07 26/z�
D AT DATE
IOWA INSTITUTE FOR COMMUNITY
ALLIANCES, an Iowa Non-profit Corporation:
(E) 6,2,E_
DAVID DISCHER, Executive Director
-- I 11,
DATE
APPROVED AS TO FORM:
AZ-WIT ATTO'NEY IDATE
- 13 -
n of federal or state laws or local
ordinances because of race, color, handicap, familial status, marital status, sex, age,
political or religious opinions, affiliations or national origin.
6.5 Remedies. If,through any cause, the Contractor shall fail to fulfill in a timely and proper
manner any obligations under this Agreement, or violate any of the covenants,
representations or agreements hereof, the City may upon written notice terminate this
Agreement or such parts thereof as to this Agreement, and may hold the Contractor
liable, to the extent permitted by Nebraska Law, for any damages caused to the City by
reasons of such default and termination.
- 12 -
nt.
6.1.7 Lead-Based Paint Regulations at 24 C.F.R. 570.608 and 24 C.F.R. Part 35 and
in particular Sub-Part B thereof. Such regulations pertain to all HUD-assisted
housing and require that all owners, prospective owners and tenants of
properties constructed prior to 1978 be properly notified that such properties
may include lead-based paint and require specific treatments according to the
amount of HUD funding allocated to the Project.
•
6.1.8 Historic Preservation requirements set forth in the National Historic
Preservation Act of 1966, as amended (16 U.S.C. 470) and the procedures set
forth in 36 C.F.R., Part 800, Advisory Council on Historic Preservation
Procedures for Protection of Historic Properties, insofar as they apply to the
performance of this Agreement. In general, this requires concurrence from the
State Historic Preservation Office for all rehabilitation and demolition of
historic properties that are 45 years old or older or that are included on a
Federal, State or local historic property list.
- 11 -
ns, particularly persons who are
recipients of HUD assistance for housing. (Exhibit"G")
- 10-
ements) and all subrecipients shall certify and
disclose accordingly.
-8 -
equirement: The Contractor will provide enough match to not only equal its
grant allocation ($13,876.00) but an additional proportional amount that will allow the
entire match requirement of the City of Omaha ESGP allocation to be met. (See Exhibit
"C", Scope of Work, for the amount of"matching dollars" required by this grant - Item
2.)
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•
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ted
violations to the Federal awarding agency.
http://www.whitehouse.gov/omb/circulars_a 1 10/ 7/16/2012
ount after fully considering the recommendations on disallowed costs
resulting from the final audit.
_.72 Subsequent adjustments and continuing responsibilities.
http://www.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
http://www.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
nts.
.51 Monitoring and reporting program performance.
(a)Recipients are responsible for managing and monitoring each project..program,subaward.function or activity
supported by the award.Recipients shall monitor subawards to ensure subrecipients have met the audit requirements
as delineated in Section_.26.
(b)The Federal awarding agency shall prescribe the frequency with which the performance reports shall be submitted.
Except as provided in paragraph_.51(f),performance reports shall not be required more frequently than quarterly
or.less frequently than annually.Annual reports shall be due 90 calendar days after the grant year:quarterly or semi-
hup://wvvvv.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
inancial data to performance data and develop unit
cost information whenever practical.
(b)Recipients'financial management systems shall provide for the following.
(1)Accurate,current and complete disclosure of the financial results of each federally-sponsored project or
program in accordance with the reporting requirements set forth in Section_.52.If a Federal awarding agency
requires reporting on an accrual basis from a recipient that maintains its records on other than an accrual basis,
the recipient shall not be required to establish an accrual accounting system.These recipients may develop such
accrual data for its reports on the basis of an analysis of the documentation on hand.
http://www.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20,2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible, homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
minations,excerpts,
governments)and 24 CFR part 84{for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
plicable. (b),and the provision on using document their compliance with the
Where a provider,pastoral counselor,or any that the applicant meets one or both of
SCHEDULE OF EXHIBITS
Agreement
Exhibit Location Description
A 1.2 Articles of Incorporation, Directors,
Corporate Resolution
B 1.7, 1.11 HUD 24 CFR Part 576
C 1.16, 1.17,2.1, 3.3 Scope of Work
D 2.1.2 Annual Operating Budget
E 3.4 OMB Circular A-133
F 5.14.1.1 Equal Employment Opportunity Clause
G 5.14.1 Section 3 Clause
H 5.8 Termination -CFR 85.43 and CFR 85.44
I 3.6, 5.13 OMB Circular A-122
J 3.5, 3.6, 5.13 OMB Circular A-110
K 2.1.8 Use of Debarred, Suspended or Ineligible
Contractors
pl nlsf1704-agreement
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fl700-res
aermaz
By ci1member
Adopted S. 1. 12012 •
C• Clerk
Approved... .
Mayor
treets
p
•
ARTICLES OF INCORPORATION
IOWA INSTITUTE FOR LOW-INCOME HOUSING,
• ENERGY AND TELECOMMUNICATIONS
TO -THE SECRETARY OF STATE OF THE STATE OF IOWA:
We,. David A. Discher, Clayton C. Mowers, and Beverly Wharton,
acting as. the incorporators of a corporation organized under the
Iowa Nonprofit Corporation Act (Iowa Code chapter 504A) , adopt the
following Articles of Incorporation for the corporation:
1. Name. The name of the corporation is "Iowa Institute for Low-
Income Housing, Energy and Telecommunications".
ti .
2. . Duration. The corporation will have a perpetual duration.
3 . Purpose. The corporation is organized for charitable,
scientific and education purposes within the meaning of Section
501(c) (3) of the Internal Revenue Code of 1986.
4 . Restrictions on Powers.
A. No part of the net earnings of the corporation will enure
to the benefit of, or be distributable to, its members,
trustees, officers, or other'private persons except that
the corporation will be authorized and empowered to pay
reasonable compensation for services rendered.
r
B. No substantial part of the activities of the corporation
will be the carrying on of propaganda or otherwise
attempting to influence legislation and the corporation
.'-will not participate in or intervene in (including the
publishing or distribution of statements) any political
campaign on behalf of any candidate for public office.
C. Notwithstanding any other provisions of these articles
of incorporation, the corporation will not carry on any
other activities not permitted to be carried on (a) by
a corporation exempt from Federal income tax under
section .501(c) (3) of the Internal Revenue Code of 1986
(or the corresponding provision '`of any ` future United •
States Internal Revenue Law) or (b) by a corporation,
contributions to which are deductible under section
170(c) (2) of the Internal Revenue Code of 1986 (or :the
corresponding provision of any future United States
Internal Revenue Law) .
D. On the dissolution of the corporation, ' the board-of
J. . directors will';,, ,after paying or making provisions for the
payment - of all of the liabilities of the corporation,
dispose of all the assets of the corporation exclusively
for the purposes of the corporation in such manner, or
to such organization or organizations organized and
operated .exclusively for charitable, educational,
-- _.
n of
historic properties that are 45 years old or older or that are included on a
Federal, State or local historic property list.
- 11 -
ns, particularly persons who are
recipients of HUD assistance for housing. (Exhibit"G")
- 10-
ements) and all subrecipients shall certify and
disclose accordingly.
-8 -
equirement: The Contractor will provide enough match to not only equal its
grant allocation ($13,876.00) but an additional proportional amount that will allow the
entire match requirement of the City of Omaha ESGP allocation to be met. (See Exhibit
"C", Scope of Work, for the amount of"matching dollars" required by this grant - Item
2.)
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•
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http://wwvv.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
ted
violations to the Federal awarding agency.
http://www.whitehouse.gov/omb/circulars_a 1 10/ 7/16/2012
ount after fully considering the recommendations on disallowed costs
resulting from the final audit.
_.72 Subsequent adjustments and continuing responsibilities.
http://www.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
http://www.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
nts.
.51 Monitoring and reporting program performance.
(a)Recipients are responsible for managing and monitoring each project..program,subaward.function or activity
supported by the award.Recipients shall monitor subawards to ensure subrecipients have met the audit requirements
as delineated in Section_.26.
(b)The Federal awarding agency shall prescribe the frequency with which the performance reports shall be submitted.
Except as provided in paragraph_.51(f),performance reports shall not be required more frequently than quarterly
or.less frequently than annually.Annual reports shall be due 90 calendar days after the grant year:quarterly or semi-
hup://wvvvv.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
inancial data to performance data and develop unit
cost information whenever practical.
(b)Recipients'financial management systems shall provide for the following.
(1)Accurate,current and complete disclosure of the financial results of each federally-sponsored project or
program in accordance with the reporting requirements set forth in Section_.52.If a Federal awarding agency
requires reporting on an accrual basis from a recipient that maintains its records on other than an accrual basis,
the recipient shall not be required to establish an accrual accounting system.These recipients may develop such
accrual data for its reports on the basis of an analysis of the documentation on hand.
http://www.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20,2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible, homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
minations,excerpts,
governments)and 24 CFR part 84{for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
plicable. (b),and the provision on using document their compliance with the
Where a provider,pastoral counselor,or any that the applicant meets one or both of
Iowa Institute for Community Alliances
Membership of the Board of Directors—2012-2013 (Updated 07/01/2012)
CHAIR Phyllis Runnells E-mail: prunnells@pcsia.net
Executive Director
Southern Iowa Economic Development Association(SIEDA)
P.O. Box 658, 226 West Main
Ottumwa, Iowa 52501
(641)-682-8741 Fax (641)-682-2026
VICE-CHAIR Bill Peppmeier E-mail: bpeppmeier@rracap.org
Red Rock Community Action Agency
1009 S. Jefferson, Suite 2
Indianola, IA 50125
(515)961-6271
TREASURER Paul Stanfield E-mail: pstanfield@aol.com
Consultant
PO Box 6126
Des Moines, IA 50309-6126
(515)255-3494 Fax (515)255-3494 Cell: (515)971-6143
Jack B. Clark E-mail: jackbclark@iowautility.org
Vice President
Iowa Utility Association
500 East Court Avenue, Suite 312
Des Moines, Iowa 50309
Work 515-282-2115 Fax 515-282-7709
Lana Ross E-mail: llross@dmgov.org
Executive Director
Iowa Community Action Association
602 E. Robert D. Ray Drive
Des Moines, IA 50309
515-283-4525
James Swanstrom E-mail: jwanstrom@healthcharities.org
Community Health Charities Iowa
1111 9th Street, Suite 275
Des Moines, IA 50314-2593
515-243-7207 Cell 515-490-9097
Diane Foss E-mail: diane.foss@iowa.gov
IDEA
200 East Grand Avenue
Des Moines, IA 50309-1834
515-242-5907
part of the activities of the corporation
will be the carrying on of propaganda or otherwise
attempting to influence legislation and the corporation
.'-will not participate in or intervene in (including the
publishing or distribution of statements) any political
campaign on behalf of any candidate for public office.
C. Notwithstanding any other provisions of these articles
of incorporation, the corporation will not carry on any
other activities not permitted to be carried on (a) by
a corporation exempt from Federal income tax under
section .501(c) (3) of the Internal Revenue Code of 1986
(or the corresponding provision '`of any ` future United •
States Internal Revenue Law) or (b) by a corporation,
contributions to which are deductible under section
170(c) (2) of the Internal Revenue Code of 1986 (or :the
corresponding provision of any future United States
Internal Revenue Law) .
D. On the dissolution of the corporation, ' the board-of
J. . directors will';,, ,after paying or making provisions for the
payment - of all of the liabilities of the corporation,
dispose of all the assets of the corporation exclusively
for the purposes of the corporation in such manner, or
to such organization or organizations organized and
operated .exclusively for charitable, educational,
-- _.
n of
historic properties that are 45 years old or older or that are included on a
Federal, State or local historic property list.
- 11 -
ns, particularly persons who are
recipients of HUD assistance for housing. (Exhibit"G")
- 10-
ements) and all subrecipients shall certify and
disclose accordingly.
-8 -
equirement: The Contractor will provide enough match to not only equal its
grant allocation ($13,876.00) but an additional proportional amount that will allow the
entire match requirement of the City of Omaha ESGP allocation to be met. (See Exhibit
"C", Scope of Work, for the amount of"matching dollars" required by this grant - Item
2.)
-6-
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USA quv I S,t.rnbrr Ir..FF5 Fix:rt< Appry tnr a./td;
•
•
http://wwvv.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
ted
violations to the Federal awarding agency.
http://www.whitehouse.gov/omb/circulars_a 1 10/ 7/16/2012
ount after fully considering the recommendations on disallowed costs
resulting from the final audit.
_.72 Subsequent adjustments and continuing responsibilities.
http://www.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
http://www.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
nts.
.51 Monitoring and reporting program performance.
(a)Recipients are responsible for managing and monitoring each project..program,subaward.function or activity
supported by the award.Recipients shall monitor subawards to ensure subrecipients have met the audit requirements
as delineated in Section_.26.
(b)The Federal awarding agency shall prescribe the frequency with which the performance reports shall be submitted.
Except as provided in paragraph_.51(f),performance reports shall not be required more frequently than quarterly
or.less frequently than annually.Annual reports shall be due 90 calendar days after the grant year:quarterly or semi-
hup://wvvvv.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
inancial data to performance data and develop unit
cost information whenever practical.
(b)Recipients'financial management systems shall provide for the following.
(1)Accurate,current and complete disclosure of the financial results of each federally-sponsored project or
program in accordance with the reporting requirements set forth in Section_.52.If a Federal awarding agency
requires reporting on an accrual basis from a recipient that maintains its records on other than an accrual basis,
the recipient shall not be required to establish an accrual accounting system.These recipients may develop such
accrual data for its reports on the basis of an analysis of the documentation on hand.
http://www.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20,2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible, homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
minations,excerpts,
governments)and 24 CFR part 84{for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
plicable. (b),and the provision on using document their compliance with the
Where a provider,pastoral counselor,or any that the applicant meets one or both of
CORPORATE RESOLUTION
Be it resolved that the Board of Directors of the Iowa Institute for Community Alliances hereby agrees to
enter into a contract for$13,876 with the City of Omaha, Nebraska,to provide specified services in
accordance with all requirements for the Emergency Shelter Grant program for fiscal year 2012. Be it
further resolved that the Board of Directors authorizes David Discher, Executive Director,to take all
actions, including the execution of the Agreement with the City of Omaha to carry out the purpose of
this Resolution.
Approved by the Board on July 4), 2012.
Signed: � C. .r lr�i�a � _)
Board Secretary
Contractors
pl nlsf1704-agreement
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fl700-res
aermaz
By ci1member
Adopted S. 1. 12012 •
C• Clerk
Approved... .
Mayor
treets
A
75974 Federal Register/Vol. 76, No. 233/Monday, December 5, 2011/Rules and Regulations
standards developed in consultation Subpart A—General Provisions facility,or correction program or
with the Continuum(s)of Care. institution);or
* * * * §576.1 Applicability and purpose. (G)Otherwise lives in housing that
This part implements the Emergency has characteristics associated with
• 21.Part 576 is revised to read as Solutions Grants(ESG)program instability and an increased risk of
follows: authorized by subtitle B of title IV of the homelessness,as identified in the
McKinney-Vento Homeless Assistance recipient's approved consolidated plan;
PART 576—EMERGENCY SOLUTIONS Act(42 U.S.C. 11371-11378).The (2)A child or youth who does not
GRANTS PROGRAM program authorizes the Department of qualify as"homeless"under this
Subpart A—General Provisions Housing and Urban Development(HUD) section,but qualifies as"homeless"
Sec. to make grants to States,units of general ander nd Homeless 87(3) f theU.S.C.Runaway
purpose local government,and
576.1 Applicability and purpose. territories for the rehabilitation or 5732a(3)),section 637(11)of the Head
576.2 Definitions. conversion of buildings for use as
Start Act(42 U.S.C. 9832(11)),section
576.3 Allocation of funding. emergency shelter for the homeless,for 41403(6)of the Violence Against
Subpart B—Program Components and the payment of certain expenses related Women Act of 1994 (42 U.S.C. 14043e—
Eligible Activities to operating emergency shelters,for 2(6)),section 330(h)(5)(A)of the Public
576.100 General provisions and essential services related to emergency Health Service Act(42 U.S.C.
expenditure limits. shelters and street outreach for the 254b(h)(5)(A)),section 3(m)of the Food
576.101 Street outreach component. homeless,and for homelessness and Nutrition Act of 2008(7 U.S.C.
576.102 Emergency shelter component. prevention and rapid re-housing 2012(m)),or section 17(b)(15)of the
576.103 Homelessness prevention assistance. Child Nutrition Act of 1966(42 U.S.C.
component. 1786(b)(15));or
576.104 Rapid re-housing assistance §576.2 Definitions. (3)A child or youth who does not
component. At risk of homelessness means:(1)An qualify as"homeless"under this
576.105 Housing relocation and individual or family who: section,but qualifies as"homeless"
stabilization services. (i)Has an annual income below 30 under section 725(2)of the McKinney-
576.106 Short-term and medium-term percent of median family income for the Vento Homeless Assistance Act(42
rental assistance. area,as determined by HUD; U.S.C. 11434a(2)),and the parent(s)or
576.107 HMIS component. (ii)Does not have sufficient resources guardian(s)of that child or youth if
576.108 .Administrative activities. or support networks,e.g.,family, living with her or him.
576.109 Indirect costs. friends,faith-based or other social Consolidated plan means a plan
networks,immediately available to prepared in accordance with 24 CFR
Subpart C—Award and Use of Funds part 91.An approved consolidated plan
576.200 Submission requirements and prevent them from moving to an means a consolidated plan that has been
grant approval. emergency shelter or another place approved by HUD in accordance with
described in paragraph(1)of the 24 CFR part 91.
576.201 Matching requirement. "homeless"definition in this section;
576.202 Means of carrying out grant Continuum of Care means the group
and •
activities. composed of representatives of relevant
576.203 Obligation,expenditure,and (iii)Meets one of the following organizations,which generally includes
payment requirements. conditions: nonprofit homeless providers;victim
(A)Has moved because of economic service providers;faith-based
Subpart D—Reallocations reasons two or more times during the 60 organizations;governments;businesses;
576.300 In general. days immediately preceding the advocates;public housing agencies;
576.301 Metropolitan cities and urban application for homelessness prevention school districts;social service providers;
counties. assistance; mental health agencies;hospitals;
576.302 States. (B)Is living in the home of another universities;affordable housing
576.303 Territories. because of economic hardship; • developers;law enforcement;
576.304 Alternative method. (C)Has been notified in writing that organizations that serve homeless and
Subpart E—Program Requirements their right to occupy their current formerly homeless veterans,and
576.400 Area-wide systems coordination housing or living situation will be homeless and formerly homeless
terminated within 21 days after the date persons that are organized to plan for
requirements. of application for assistance; and provide,as necessary,a system of
576.401 Evaluation of program participant
eligibility and needs. (D)Lives in a hotel or motel and the outreach,engagement,and assessment;
576.402 Terminating assistance. cost of the hotel or motel stay is not paid emergency shelter;rapid re-housing;
576.403 Shelter and housing standards. by charitable organizations or by transitional housing;permanent
576.404 Conflicts of interest. Federal,State,or local government housing;and prevention strategies to
576.405 Homeless participation. programs for low-income individuals; address the various needs of homeless
576.406 Faith-based activities. (E)Lives in a single-room occupancy persons and persons at risk of
576.407 Other Federal requirements. or efficiency apartment unit in which homelessness for a specific geographic
576.408 Displacement,relocation,and there reside more than two persons or area.
acquisition. lives in a larger housing unit in which Emergency shelter means any facility,
Subpart F—Grant Administration there reside more than 1.5 persons the primary purpose of which is to
reside per room,as defined by the U.S. provide a temporary shelter for the
576.500 Recordkeeping and reporting Census Bureau; homeless in general or for specific
requirements. (F)Is exiting a publicly funded populations of the homeless and which
576.501 Enforcement. institution,or system of care(such as a does not require occupants to sign
Authority:42 U.S.C.11371 et seq.,42 health-care facility,a mental health leases or occupancy agreements.Any
U.S.C.3535(d). facility,foster care or other youth project funded as an emergency shelter
the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
minations,excerpts,
governments)and 24 CFR part 84{for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
plicable. (b),and the provision on using document their compliance with the
Where a provider,pastoral counselor,or any that the applicant meets one or both of
it
Federal Register/Vol. 76, No. 233/Monday, December 5, 2011/Rules and Regulations 75975
under a Fiscal Year 2010 Emergency (iii)Have experienced persistent public housing agency or housing
Solutions grant may continue to be instability as measured by two moves or finance agency.
funded under ESG. more during the 60-day period Program income shall have the
Homeless means: immediately preceding the date of meaning provided in 24 CFR 85.25. !
(1)An individual or family who lacks applying for homeless assistance;and Program income includes any amount of
a fixed,regular,and adequate nighttime (iv)Can be expected to continue in a security or utility deposit returned to
residence,meaning: such status for an extended period of the recipient or subrecipient.
(i)An individual or family with a time because of chronic disabilities, Program participant means an
primary nighttime residence that is a chronic physical health or mental health individual or family who is assisted
public or private place not designed for conditions,substance addiction, under ESG program.
or ordinarily used as a regular sleeping histories of domestic violence or Program year means the consolidated
accommodation for human beings, childhood abuse(including neglect),the program year established by the
including a car,park,abandoned presence of a child or youth with a recipient under 24 CFR part 91.
building,bus or train station,airport,or disability,or two or more barriers to Recipient means any State,territory,
camping ground; employment,which include the lack of metropolitan city,or urban county,or in
(ii)An individual or family living in a high school degree or General the case of reallocation,any unit of
a supervised publicly or privately Education Development(GED), general purpose local government that is
operated shelter designated to provide illiteracy,low English proficiency,a approved by HUD to assume financial
temporary living arrangements history of incarceration or detention for responsibility and enters into a grant .
(including congregate shelters, criminal activity,and a history of agreement with HUD to administer
transitional housing,and hotels and unstable employment;or assistance under this part. •
motels paid for by charitable State means each of the several States
(4)Any individual or family who:
organizations or by federal,state,or (i)Is fleeing,or is attempting to flee, and the Commonwealth of Puerto Rico.
local government programs for low- domestic violence,dating violence, Subrecipient means a unit of general
income individuals);or purpose local government or private
sexual assault,stalking,or other
(iii)An individual who is exiting an dangerous or life threatening conditions nonprofit organization to which a
institution where he or she resided for recipient makes available ESG funds.
that relate to violence against the
90 days or less and who resided in an Territory means each of the following:
individual or a family member,
emergency shelter or place not meant including a child,that has either taken the Virgin Islands,Guam,American
for human habitation immediately Samoa,and the Northern Mariana
before entering that institution; place within the individual's or family's Islands.
(2)An individual or family who will primary nighttime residence or has Unit of general purpose local
made the individual or family afraid to
imminently lose their primary nighttime return to their primary nighttime government means any city,county,
residence,provided that: town,township,parish,village,or other
(i)The primary nighttime residence residence; general purpose political subdivision of
will be lost within 14 days of the date (ii)Has no other residence;and a State.
of application for homeless assistance; (iii)Lacks the resources or support Urban county means a county that
(ii)No subsequent residence has been networks,e.g.,family,friends,faith- was classified as an urban county under
identified;and based or other social networks,to obtain 42 U.S.C.5302(a)for the fiscal year
(iii)The individual or family lacks the other permanent housing. immediately preceding the fiscal year
resources or support networks,e.g., Homeless Management Information for which ESG funds are made available.
family,friends,faith-based or other System(HMIS)means the information Victim service provider means a
social networks,needed to obtain other system designated by the Continuum of private nonprofit organization whose
permanent housing; Care to comply with the HUD's data primary mission is to provide services
(3)Unaccompanied youth under 25 collection,management,and reporting to victims of domestic violence,dating
years of age,or families with children standards and used to collect client- violence,sexual assault,or stalking.
and youth,who do not otherwise level data and data on the provision of This term includes rape crisis centers,
qualify as homeless under this housing and services to homeless battered women's shelters,domestic
definition,but who: individuals and families and persons at- violence transitional housing programs,
(i)Are defined as homeless under risk of homelessness. and other programs.
section 387 of the Runaway and Metropolitan city means a city that
Homeless Youth Act(42 U.S.C. 5732a), was classified as a metropolitan city §576.3 Allocation of funding.
section 637 of the Head Start Act(42 under 42 U.S.C. 5302(a)for the fiscal (a) Territories.HUD will set aside for
U.S.C.9832),section 41403 of the year immediately preceding the fiscal allocation to the territories up to 0.2
Violence Against Women Act of 1994 year for which ESG funds are made percent,but not less than 0.1 percent,of
(42 U.S.C. 14043e-2),section 330(h)of available.This term includes the the total amount of each appropriation
the Public Health Service Act(42 U.S.C. District of Columbia. under this part in any fiscal year. HUD
254b(h)),section 3 of the Food and Private nonprofit organization means will allocate this set-aside amount to
Nutrition Act of 2008(7 U.S.C. 2012), a private nonprofit organization that is each territory based on its proportionate
section 17(b)of the Child Nutrition Act a secular or religious organization share of the total population of all
of 1966(42 U.S.C. 1786(b))or section described in section 501(c)of the territories and its rate of compliance
725 of the McKinney-Vento Homeless Internal Revenue Code of 1986 and with the most recent expenditure
Assistance Act(42 U.S.C. 11434a); which is exempt from taxation under deadline under§576.203.
(ii)Have not had a lease,ownership subtitle A of the Code,has an (b)States,metropolitan cities,and
interest,or occupancy agreement in accounting system and a voluntary urban counties.HUD will allocate the
permanent housing at any time during board,and practices nondiscrimination amounts that remain after the set-aside
the 60 days immediately preceding the in the provision of assistance.A private to territories under paragraph(a)of this
date of application for homeless nonprofit organization does not include section to States,metropolitan cities, I
assistance; a governmental organization,such as a and urban counties,as follows:
; retained.
plicable. (b),and the provision on using document their compliance with the
Where a provider,pastoral counselor,or any that the applicant meets one or both of
75976 Federal Register/Vol. 76, No. 233/Monday, December 5, 2011/Rules and Regulations
(1)HUD will provide that the §576.101 Street outreach component. conditions and are provided by licensed
percentage of the total amount available (a)Eligible costs. Subject to the medical professionals operating in
for allocation to each State, expenditure limit in§576.100(b),ESG community-based settings,including
metropolitan city,or urban county is funds may be used for costs of providing streets,parks,and other places where
equal to the percentage of the total essential services necessary to reach out unsheltered homeless people are living.
amount available under section 106 of to unsheltered homeless people; (ii)ESG funds may be used only for
the Housing and Community connect them with emergency shelter, these services to the extent that other
Development Act of 1974 for the prior housing,or critical services;and appropriate health services are
fiscal year that was allocated to that provide urgent,nonfacility-based care to inaccessible or unavailable within the
State,metropolitan city,or urban unsheltered homeless people who are area.
county: unwilling or unable to access emergency (iii)Eligible treatment consists of
(2)Except as otherwise provided by shelter,housing,or an appropriate assessing a program participant's health
law,if the amount a metropolitan city health facility.For the purposes of this problems and developing a treatment
or urban county would be allocated section,the term"unsheltered homeless plan;assisting program participants to
under paragraph(b)(1)is less than 0.05 people"means individuals and families understand their health needs;
percent of the total fiscal year who qualify as homeless under providing directly or assisting program
appropriation for ESG,that amount will paragraph(1)(i)of the"homeless" participants to obtain appropriate
be added to the allocation for the State definition under§576.2.The eligible emergency medical treatment;and
in which the city or county is located. costs and requirements for essential providing medication and follow-up
(c)Notification of allocation amount. services consist of: services.
HUD will notifyeach State, (i)Engagement.The costs of activities (4)Emergency mental health services.
to locate,identify,and build (i)Eligible costs are the direct outpatient
metropolitan city,urban county,and relationships with unsheltered homeless treatment by licensed professionals of
territory that is eligible to receive an people and engage them for the purpose mental health conditions operating in
allocation under this section of the of providing immediate support, community-based settings,including
amount of its allocation. intervention,and connections with streets,parks,and other places where
El—Program—Program Components and homeless assistance programs and/or unsheltered people are living.
Subpart
Eligible
Activities mainstream social services and housing (ii)ESG funds may be used only for.
programs.These activities consist of these services to the extent that other
§576.100 General provisions and making an initial assessment of needs appropriate mental health services are
expenditure limits. and eligibility;providing crisis inaccessible or unavailable within the
(a)ESG funds may be used for five counseling;addressing urgent physical community.
components:street outreach, needs,such as providing meals, (iii)Mental health services are the
programmergency shelter,e blankets,clothes,or toiletries;and application of therapeutic processes to
emergency
nyrapie re-housing homelessnesssstance, actively connecting and providing personal,family,situational,or
and prevention,as well as administrative information and referrals to programs occupational problems in order to bring
activiHties.The components targeted to homeless people and about positive resolution of the problem
and the eligible.Thefiveac program that mayp be mainstream social services and housing or improved individual or family
funded under each are set forth in programs,including emergency shelter, functioning or circumstances.
transitional housing,community-based (iv)Eligible treatment consists of
§576.101 through §576.107.Eligible services,permanent supportive housing, crisis interventions,the prescription of
administrative activities are set forth in and rapid re-housing programs.Eligible psychotropic medications,explanation
§576.108. costs include the cell phone costs of about the use and management of
(b)The total amount of the recipient's outreach workers during the medications,and combinations of
fiscal year grant that may be used for performance of these activities. therapeutic approaches to address
street outreach and emergency shelter (2) Case management.The cost of multiple problems.
activities cannot exceed the greater of: assessing housing and service needs, (5) Transportation.The transportation
(1)60 percent of the recipient's fiscal arranging,coordinating,and monitoring costs of travel by outreach workers,
year grant;or the delivery of individualized services social workers,medical professionals,or
(2)The amount of Fiscal Year 2010 to meet the needs of the program other service providers are eligible,
participant.Eligible services and provided that this travel takes place
grant funds committed for homeless
assistance activities. activities are as follows:using the during the provision of services eligible
centralized or coordinated assessment under this section.The costs of
(c)The total amount of ESG funds that system as required under§576.400(d); transporting unsheltered people to
may be used for administrative activities conducting the initial evaluation emergency shelters or other service
cannot exceed 7.5 percent of the required under§576.401(a),including facilities are also eligible.These costs
recipient's fiscal year grant. verifying and documenting eligibility; include the following:
(d)Subject to the cost principles in counseling;developing,securing and (i)The cost of a program participant's
OMB Circulars A-87 (2 CFR 225)and coordinating services;obtaining Federal, travel on public transportation;
A-122 (2 CFR 230)and other State,and local benefits;monitoring and (ii)If service workers use their own
requirements in this part,employee evaluating program participant progress; vehicles,mileage allowance for service
compensation and other overhead costs providing information and referrals to workers to visit program participants;
directly related to carrying out street other providers;and developing an (iii)The cost of purchasing or leasing
outreach,emergency shelter, individualized housing and service a vehicle for the recipient or
homelessness prevention,rapid re- plan,including planning a path to subrecipient in which staff transports
housing,and HMIS are eligible costs of permanent housing stability. program participants and/or staff
those program components.These costs (3)Emergency health services.(i) serving program participants,and the
are not subject to the expenditure limit Eligible costs are for the direct cost of gas,insurance,taxes and
in paragraph(c)of this section. outpatient treatment of medical maintenance for the vehicle;and
licable. (b),and the provision on using document their compliance with the
Where a provider,pastoral counselor,or any that the applicant meets one or both of
d
Federal Register/Vol. 76, No. 233/Monday, December 5, 2011/Rules and Regulations 75977 ,
(iv)The travel costs of recipient or of services for homeless people. substance abuse prevention,literacy,
subrecipient staff to accompany or assist Reasonable steps may include steps to English as a Second Language,and
program participants to use public increase revenue generation,steps to General Educational Development
transportation. maximize cost savings,or steps to (GED).Component services or activities
(6) Services for special populations. reduce expenditures in areas other than are screening,assessment and testing;
ESG funds may be used to provide services for homeless people. individual or group instruction;
services for homeless youth,victim tutoring;provision of books,supplies
services,and services for people living §576.102 Emergency shelter component. and instructional material;counseling;
with HIV/AIDS,so long as the costs of (a) General. Subject to the and referral to community resources.
providing these services are eligible expenditure limit in§576.100(b),ESG (iv)Employment assistance and job
under paragraphs(a)(1)through(a)(5)of funds may be used for costs of providing training.The costs of employment
this section.The term victim services essential services to homeless families assistance and job training programs are
means services that assist program and individuals in emergency shelters, eligible,including classroom,online,
participants who are victims of renovating buildings to be used as and/or computer instruction;on-the-job
domestic violence,dating violence, emergency shelter for homeless families instruction;and services that assist
sexual assault,or stalking, including and individuals,and operating individuals in securing employment,
services offered by rape crisis centers emergency shelters. acquiring learning skills,and/or
and domestic violence shelters,and (1)Essential services.ESG funds may increasing earning potential.The cost of
other organizations with a documented be used to provide essential services to providing reasonable stipends to
history of effective work concerning individuals and families who are in an program participants in employment
domestic violence,dating violence, emergency shelter,as follows: assistance and job training programs is
sexual assault,or stalking. (i)Case management.The cost of an eligible cost.Learning skills include
(b)Minimum period of use.The assessing,arranging,coordinating,and those skills that can be used to secure
recipient or subrecipient must provide monitoring the delivery of and retain a job,including the
services to homeless individuals and individualized services to meet the acquisition of vocational licenses and/or
families for at least the period during needs of the program participant is certificates.Services that assist
which ESG funds are provided. eligible.Component services and individuals in securing employment
(c)Maintenance of effort. (1)If the activities consist of: consist of employment screening,
recipient or subrecipient is a unit of (A)Using the centralized or assessment,or testing;structured job
general purpose local government,its coordinated assessment system as skills and job-seeking skills;special
ESG funds cannot be used to replace required under§576.400(d); training and tutoring,including literacy
funds the local government provided for (B)Conducting the initial evaluation training and prevocational training;
street outreach and emergency shelter required under§576.401(a),including books and instructional material;
services during the immediately verifying and documenting eligibility; counseling or job coaching;and referral
preceding 12-month period,unless HUD (C)Counseling; to community resources.
determines that the unit of general (D)Developing,securing,and (v)Outpatient health services.Eligible
purpose local government is in a severe coordinating services and obtaining costs are for the direct outpatient
financial deficit. Federal,State,and local benefits; treatment of medical conditions and are
(2)Upon the recipient's request,HUD (E)Monitoring and evaluating provided by licensed medical
will determine whether the unit of program participant progress; professionals.Emergency Solutions
general purpose local government is in (F)Providing information and Grant(ESG)funds may be used only for
a severe financial deficit,based on the referrals to other providers; these services to the extent that other
recipient's demonstration of each of the (G)Providing ongoing risk assessment appropriate health services are
following: and safety planning with victims of unavailable within the community.
(i)The average poverty rate in the unit domestic violence,dating violence, Eligible treatment consists of assessing a
of general purpose local government's sexual assault,and stalking;and program participant's health problems
jurisdiction was equal to or greater than (H)Developing an individualized and developing a treatment plan;
125 percent of the average national housing and service plan,including assisting program participants to
poverty rate,during the calendar year planning a path to permanent housing understand their health needs;
for which the most recent data are stability. providing directly or assisting program
available,as determined according to (ii)Child care.The costs of child care participants to obtain appropriate
information from the U.S. Census for program participants,including medical treatment,preventive medical
Bureau. providing meals and snacks,and care,and health maintenance services,
(ii)The average per-capita income in comprehensive and coordinated sets of including emergency medical services;
the unit of general purpose local appropriate developmental activities, providing medication and follow-up
government's jurisdiction was less than are eligible.The children must be under services;and providing preventive and
75 percent of the average national per- the age of 13,unless they are disabled. noncosmetic dental care.
capita income,during the calendar year Disabled children must be under the age (vi)Legal services. (A)Eligible costs
for which the most recent data are of 18.The child-care center must be are the hourly fees for legal advice and
available,as determined according to licensed by the jurisdiction in which it representation by attorneys licensed and
information from the Census Bureau. operates in order for its costs to be in good standing with the bar
(iii)The unit of general purpose local eligible. association of the State in which the
government has a current annual budget (iii)Education services.When services are provided,and by person(s)
deficit that requires a reduction in necessary for the program participant to under the supervision of the licensed
funding for services for homeless obtain and maintain housing,the costs attorney,regarding matters that interfere
people. of improving knowledge and basic with the program participant's ability to
(iv)The unit of general purpose local educational skills are eligible.Services obtain and retain housing.
government has taken all reasonable include instruction or training in (B)Emergency Solutions Grant(ESG)
steps to prevent a reduction in funding consumer education,health education, funds may be used only for these
n using document their compliance with the
Where a provider,pastoral counselor,or any that the applicant meets one or both of
75978 Federal Register/Vol. 76, No. 233/Monday, December 5, 2011/Rules and Regulations
g Y g
services to the extent that other relationships,parent-child problems,or history of effective work concerning
appropriate legal services are symptom management. domestic violence,dating violence,
unavailable or inaccessible within the (D)Eligible treatment consists of crisis sexual assault,or stalking.
community interventions;individual,family,or (2)Renovation.Eligible costs include
(C)Eligible subject matters are child group therapy sessions;the prescription labor,materials,tools,and other costs
support,guardianship,paternity, of psychotropic medications or for renovation(including major
emancipation,and legal separation, explanations about the use and rehabilitation of an emergency shelter or
orders of protection and other civil management of medications;and conversion of a building into an
remedies for victims of domestic combinations of therapeutic approaches emergency shelter).The emergency
violence,dating violence,sexual to address multiple problems. shelter must be owned by a government
assault,and stalking,appeal of veterans (ix)Substance abuse treatment entity or private nonprofit organization.
and public benefit claim denials,and services. (A)Eligible substance abuse (3) Shelter operations.Eligible costs
the resolution of outstanding criminal treatment services are designed to are the costs of maintenance(including
warrants. prevent,reduce,eliminate,or deter minor or routine repairs),rent,security,
(D)Component services or activities relapse of substance abuse or addictive fuel,equipment,insurance,utilities,
may include client intake,preparation behaviors and are provided by licensed food,furnishings,and supplies
of cases for trial,provision of legal or certified professionals. necessary for the operation of the
advice,representation at hearings,and (B)ESG funds may only be used for emergency shelter.Where no
counseling. these services to the extent that other appropriate emergency shelter is
(E)Fees based on the actual service appropriate substance abuse treatment available for a homeless family or
performed(i.e.,fee for service)are also services are unavailable or inaccessible individual,eligible costs may also
eligible,but only if the cost would be within the community. include a hotel or motel voucher for that
less than the cost of hourly fees.Filing (C)Eligible treatment consists of family or individual.
fees and other necessary court costs are client intake and assessment,and (4)Assistance required under the
also eligible. If the subrecipient is a outpatient treatment for up to 30 days. Uniform Relocation Assistance and Real
legal services provider and performs the Group and individual counseling and Property Acquisition Policies Act of
services itself,the eligible costs are the drug testing are eligible costs.Inpatient 1970(URA).Eligible costs are the costs
subrecipient's employees'salaries and detoxification and other inpatient drug of providing URA assistance under
other costs necessary to perform the or alcohol treatment are not eligible §576.408,including relocation
services. costs. payments and other assistance to
(F)Legal services for immigration and (x) Transportation.Eligible costs persons displaced by a project assisted
citizenship matters and issues relating consist of the transportation costs of a with ESG funds.Persons that receive
to mortgages are ineligible costs. program participant's travel to and from URA assistance are not considered
Retainer fee arrangements and medical care,employment,child care, "program participants"for the purposes
contingency fee arrangements are or other eligible essential services of this part,and relocation payments
ineligible costs. facilities.These costs include the and other URA assistance are not
(vii)Life skills training.The costs of following: considered"rental assistance"or
teaching critical life management skills (A)The cost of a program "housing relocation and stabilization
that may never have been learned or participant's travel on public services"for the purposes of this part.
have been lost during the course of transportation; (b)Prohibition against involuntary
physical or mental illness,domestic (B)If service workers use their own family separation.The age,of a child
violence,substance use,and vehicles,mileage allowance for service under age 18 must not be used as a basis
homelessness are eligible costs.These workers to visit program participants; for denying any family's admission to
services must be necessary to assist the (C)The cost of purchasing or leasing an emergency shelter that uses
program participant to function a vehicle for the recipient or Emergency Solutions Grant(ESG)
independently in the community. subrecipient in which staff transports funding or services and provides shelter
Component life skills training are program participants and/or staff to families with children under age 18.
budgeting resources,managing money, serving program participants,and the (c)Minimum period of use. (1)
managing a household,resolving cost of gas,insurance,taxes,and Renovated buildings.Each building
conflict,shopping for food and needed maintenance for the vehicle;and renovated with ESG funds must be
items,improving nutrition,using public (D)The travel costs of recipient or maintained as a shelter for homeless
transportation,and parenting. subrecipient staff to accompany or assist individuals and families for not less
(viii)Mental health services. (A) program participants to use public than a period of 3 or 10 years,
Eligible costs are the direct outpatient transportation. depending on the type of renovation
treatment by licensed professionals of (xi)Services for special populations. and the value of the building.The
mental health conditions. ESG funds may be used to provide "value of the building"is the reasonable
(B)ESG funds may only be used for services for homeless youth,victim monetary value assigned to the building,
these services to the extent that other services,and services for people living such as the value assigned by an 1
appropriate mental health services are with HIV/AIDS,so long as the costs of independent real estate appraiser.The
unavailable or inaccessible within the providing these services are eligible minimum use period must begin on the
community. under paragraphs(a)(1)(i)through date the building is first occupied by a
(C)Mental health services are the (a)(1)(x)of this section.The term victim homeless individual or family after the
application of therapeutic processes to services means services that assist completed renovation.A minimum
personal,family,situational,or program participants who are victims of period of use of 10 years,required for
occupational problems in order to bring domestic violence,dating violence, major rehabilitation and conversion,
about positive resolution of the problem sexual assault,or stalking,including must be enforced by a recorded deed or
or improved individual or family services offered by rape crisis centers use restriction.
functioning or circumstances.Problem and domestic violence shelters,and (i)Major rehabilitation.If the
areas may include family and marital other organizations with a documented rehabilitation cost of an emergency
provider,pastoral counselor,or any that the applicant meets one or both of
Federal Register/Vol. 76, No. 233/Monday, December 5, 2011/Rules and Regulations 75979 ,
shelter exceeds 75 percent of the value prevention must be provided in (5) Utility payments.ESG funds may
of the building before rehabilitation,the accordance with the housing relocation pay for up to 24 months of utility
minimum period of use is 10 years. and stabilization services requirements payments per program participant,per
(ii) Conversion.If the cost to convert in§576.105,the short-term and service,including up to 6 months of
a building into an emergency shelter medium-term rental assistance utility payments in arrears,per service.
exceeds 75 percent of the value of the requirements in§576.106,and the A partial payment of a utility bill counts
building after conversion,the minimum written standards and procedures as one month.This assistance may only
period of use is 10 years. established under§576.400. be provided if the program participant
(iii)Renovation other than major or a member of the same household has
rehabilitation or conversion.In all other §576.104 Rapid re-housing assistance an account in his or her name with a
cases where ESG funds are used for component. utility company or proof of
renovation,the minimum period of use ESG funds may be used to provide responsibility to make utility payments.
is 3 years. housing relocation and stabilization Eligible utility services are gas,electric,
(2)Essential services and shelter services and short-and/or medium-term water,and sewage.No program
operations.Where the recipient or rental assistance as necessary to help a participant shall receive more than
subrecipient uses ESG funds solely for homeless individual or family move as 24 months of utility assistance within
essential services or shelter operations, quickly as possible into permanent any 3-year period.
the recipient or subrecipient must housing and achieve stability in that (6)Moving costs.ESG funds may pay
provide services or shelter to homeless housing.This assistance,referred to as for moving costs,such as truck rental or 1
individuals and families at least for the rapid re-housing assistance,may be hiring a moving company.This
period during which the ESG funds are provided to program participants who assistance may include payment of
provided.The recipient or subrecipient meet the criteria under paragraph(1)of temporary storage fees for up to 3
does not need to limit these services or the"homeless"definition in§576.2 or months,provided that the fees are
shelter to a particular site or structure, who meet the criteria under paragraph accrued after the date the program
so long as the site or structure serves the (4)of the"homeless"definition and live participant begins receiving assistance
same type of persons originally served in an emergency shelter or other place under paragraph(b)of this section and
with the assistance(e.g.,families with described in paragraph(1)of the before the program participant moves
children,unaccompanied youth, "homeless"definition.The rapid re- into permanent housing.Payment of
disabled individuals,or victims of housing assistance must be provided in temporary storage fees in arrears is not
domestic violence)or serves homeless accordance with the housing relocation eligible.
persons in the same area where the and stabilization services requirements (b)Services costs.Subject to the
recipient or subrecipient originally in§576.105,the short-and medium- general restrictions under§576.103 and
provided the services or shelter. term rental assistance requirements in §576.104,ESG funds may be used to
(d)Maintenance of effort.The §576.106,and the written standards and pay the costs of providing the following
maintenance of effort requirements procedures established under§576.400. services:
under§576.101(c),which apply to the (1)Housing search and placement.
use of ESG funds for essential services §576.105 Housing relocation and Services or activities necessary to assist
related to street outreach,also apply for stabilization services. program participants in locating,
the use of such funds for essential (a)Financial assistance costs.Subject obtaining,and retaining suitable
services related to emergency shelter. to the general conditions under permanent housing,include the
§576.103 Homelessness prevention §576.103 and§576.104,ESG funds may following:
component. be used to pay housing owners,utility (i)Assessment of housing barriers,
ESG funds may be used to provide companies,and other third parties for needs,and preferences;
housing relocation and estatopr provide
the following costs: (ii)Development of an action plan for
services and short-and/or medium term ion
(1)Rental application fees.ESG funds locating housing;
rental assistance necessarytoprevent an may pay for the rental housing (iii)Housing search;
application fee that is charged by the (iv)Outreach to and negotiation with
individual or family from moving into owners;
an emergency shelter or another place owner to all applicants.
described inparagraph(1)of the (2) Security deposits.ESG funds may (v)Assistance with submitting rental
"homeless" efiitio in§576.2.This pay for a security deposit that is equal applications
Assessment ofhous housing forleases;
assistance,referred to as homelessness to no more than 2 months'rent. compliance with Emergency Solutions
prevention,may be provided to (3)Last month's rent.If necessary to Grant(ESG)requirements for
individuals and families who meet the obtain housing for a program habitability,lead-based paint,and rent
criteria under the"at risk of participant,the last month's rent may be reasonableness;
homelessness"definition,or who meet paid from ESG funds to the owner of (vii)Assistance with obtaining
the criteria in paragraph(2),(3),or(4) that housing at the time the owner is utilities and making moving
of the"homeless"definition in§576.2 paid the security deposit and the first arrangements;and
and have an annual income below 30 month's rent.This assistance must not (viii)Tenant counseling.
percent of median family income for the exceed one month's rent and must be (2)Housing stability case
area,as determined by HUD.The costs included in calculating the program management.ESG funds may be used to
of homelessness prevention are only participant's total rental assistance, pay cost of assessing,arranging,
eligible to the extent that the assistance which cannot exceed 24 months during coordinating,and monitoring the
is necessary to help the program any 3-year period. delivery of individualized services to
participant regain stability in the (4) Utility deposits.ESG funds may facilitate housing stability for a program
program participant's current pay for a standard utility deposit participant who resides in permanent
permanent housing or move into other required by the utility company for all housing or to assist a program
permanent housing and achieve stability customers for the utilities listed in participant in overcoming immediate
in that housing. Homelessness paragraph(5)of this section. barriers to obtaining housing.This
ctioning or circumstances.Problem and domestic violence shelters,and (i)Major rehabilitation.If the
areas may include family and marital other organizations with a documented rehabilitation cost of an emergency
provider,pastoral counselor,or any that the applicant meets one or both of
75980 Federal Register/Vol. 76, No. 233/Monday, December 5, 2011/Rules and Regulations
assistance cannot exceed 30 days during set a maximum period for which a or operating assistance,through other
the period the program participant is program participant may receive any of public sources.Rental assistance may
seeking permanent housing and cannot the types of assistance or services under not be provided to a program participant
exceed 24 months during the period the this section.However,except for who has been provided with
program participant is living in housing stability case management,the replacement housing payments under
permanent housing. Component total period for which any program the URA during the period of time
services and activities consist of: participant may receive the services covered by the URA payments.
(A)Using the centralized or under paragraph(b)of this section must (d)Rent restrictions. (1)Rental
coordinated assessment system as not exceed 24 months during any 3-year assistance cannot be provided unless
required under§576.400(d),to evaluate period.The limits on the assistance the rent does not exceed the Fair Market
individuals and families applying for or under this section apply to the total Rent established by HUD,as provided
receiving homelessness prevention or assistance an individual receives,either under 24 CFR part 888,and complies
rapid re-housing assistance; as an individual or as part of a family. with HUD's standard of rent
(B)Conducting the initial evaluation (d) Use with other subsidies.Financial reasonableness,as established under 24
required under§576.401(a),including assistance under paragraph(a)of this CFR 982.507.
verifying and documenting eligibility, section cannot be provided to a program (2)For purposes of calculating rent
for individuals and families applying for participant who is receiving the same under this section,the rent shall equal
homelessness prevention or rapid re- type of assistance through other public the sum of the total monthly rent for the
housing assistance; . sources or to a program participant who unit,any fees required for occupancy
(C)Counseling; has been provided with replacement under the lease(other than late fees and
(D)Developing,securing,and housing payments under the URA, pet fees)and,if the tenant pays
coordinating services and obtaining during the period of time covered by the separately for utilities,the monthly
Federal,State,and local benefits; URA payments.. allowance for utilities(excluding
(E)Monitoring and evaluating telephone)established by the public
program participant progress; §576.106 Short-term and medium-term housing authority for the area in which
(F)Providing information and rental assistance. the housing is located.
referrals to other providers; (a) General provisions.Subject to the (e)Rental assistance agreement.The
(G)Developing an individualized general conditions under§576.103 and recipient or subrecipient may make
housing and service plan,including §576.104,the recipient or subrecipient rental assistance payments only to an
planning a path to permanent housing may provide a program participant with owner with whom the recipient or
stability;and up to 24 months of rental assistance subrecipient has entered into a rental
(H)Conducting re-evaluations during any 3-year period.This assistance agreement.The rental
required under§576.401(b). assistance may be short-term rental assistance agreement must set forth the
(3)Mediation.ESG funds may pay for assistance,medium-term rental terms under which rental assistance will
mediation between the program assistance,payment of rental arrears,or be provided,including the requirements
participant and the owner or person(s) any combination of this assistance. that apply under this section.The rental
with whom the program participant is (1)Short-term rental assistance is assistance agreement must provide that,
living,provided that the mediation is assistance for up to 3 months of rent. during the term of the agreement,the
necessary to prevent the program (2)Medium-term rental assistance is owner must give the recipient or
participant from losing permanent assistance for more than 3 months but subrecipient a copy of any notice to the
housing in which the program not more than 24 months of rent. program participant to vacate the
participant currently resides. (3)Payment of rental arrears consists housing unit,or any complaint used
(4)Legal services.ESG funds may pay of a one-time payment for up to 6 under state or local law to commence an
for legal services,as set forth in months of rent in arrears,including any eviction action against the program
§576.102(a)(1)(vi),except that the late fees on those arrears. participant.
eligible subject matters also include (4)Rental assistance may be tenant- (f)Late payments.The recipient or
landlord/tenant matters,and the based or project-based,as set forth in subrecipient must make timely
services must be necessary to resolve a paragraphs(h)and(i)of this section. payments to each owner in accordance
legal problem that prohibits the program (b)Discretion to set caps and with the rental assistance agreement.
participant from obtaining permanent conditions.Subject to the requirements The rental assistance agreement must
housing or will likely result in the of this section,the recipient may set a contain the same payment due date,
program participant losing the maximum amount or percentage of grace period,and late payment penalty
permanent housing in which the rental assistance that a program requirements as the program
program participant currently resides. participant may receive,a maximum participant's lease.The recipient or
(5)Credit repair.ESG funds may pay number of months that a program subrecipient is solely responsible for
for credit counseling and other services participant may receive rental paying late payment penalties that it
necessary to assist program participants assistance,or a maximum number of incurs with non-ESG funds.
with critical skills related to household times that a program participant may (g)Lease.Each program participant
budgeting,managing money,accessing a receive rental assistance.The recipient receiving rental assistance must have a
free personal credit report,and may also require program participants to legally binding,written lease for the
resolving personal credit problems.This share in the costs of rent. rental unit,unless the assistance is
assistance does not include the payment (c) Use with other subsidies.Except solely for rental arrears.The lease must
or modification of a debt. for a one-time payment of rental arrears be between the owner and the program
(c)Maximum amounts and periods of on the tenant's portion of the rental participant.Where the assistance is
assistance.The recipient may set a payment,rental assistance cannot be solely for rental arrears,an oral
maximum dollar amount that a program provided to a program participant who agreement may be accepted in place of
participant may receive for each type of is receiving tenant-based rental a written lease,if the agreement gives
financial assistance under paragraph(a) assistance,or living in a housing unit the program participant an enforceable
of this section.The recipient may also receiving project-based rental assistance leasehold interest under state law and
licant meets one or both of
Federal Register/Vol. 76, No. 233/Monday, December 5, 2011/Rules and Regulations 75981
the agreement and rent owed are participant moves out of an assisted (vi)Paying charges for electricity,gas,
sufficiently documented by the owner's unit,the recipient or subrecipient may water,phone service,and high-speed
financial records,rent ledgers,or pay the next month's rent,i.e.,the first data transmission necessary to operate
canceled checks.For program month's rent for a new program or contribute data to the HMIS;
participants living in housing with participant,as provided in paragraph (vii)Paying salaries for operating
project-based rental assistance under (i)(2)of this section. HMIS,including:
paragraph(i)of this section,the lease (4)The program participant's lease (A)Completing data entry;
must have an initial term of one year. must not condition the term of (B) Monitoring and reviewing data
(h) Tenant-based rental assistance. occupancy to the provision of rental quality;
(1)A program participant who receives assistance payments.If the program (C)Completing data analysis;
tenant-based rental assistance may participant is determined ineligible or (D)Reporting to the HMIS Lead;
select a housing unit in which to live reaches the maximum number of (F)Training staff on using the HMIS
and may move to another unit or months over which rental assistance can or comparable database;and
building and continue to receive rental be provided,the recipient or (G)Implementing and complying with
assistance,as long as the program subrecipient must suspend or terminate HMIS requirements;
participant continues to meet the the rental assistance payments for the (viii)Paying costs of staff to travel to
program requirements. unit. If the payments are suspended,the and attend HUD-sponsored and HUD-
(2)The recipient may require that all individual or family may remain in the approved training on HMIS and
program participants live within a assisted unit as permitted under the programs authorized by Title IV of the
particular area for the period in which lease,and the recipient or subrecipient McKinney-Vento Homeless Assistance
the rental assistance is provided. may resume payments if the individual Act;
(3)The rental assistance agreement or family again becomes eligible and (ix)Paying staff travel costs to
with the owner must terminate and no needs further rental assistance.If the conduct intake;and
further rental assistance payments payments are terminated,the rental (x)Paying participation fees charged
under that agreement may be made if: assistance may be transferred to another by the HMIS Lead,if the recipient or
(i)The program participant moves out available unit in the same building, subrecipient is not the HMIS Lead.The
of the housing unit for which the provided that the other unit meets all HMIS Lead is the entity designated by
program participant has a lease; ESG requirements. the Continuum of Care to operate the
(ii)The lease terminates and is not (5)The rental assistance agreement area's HMIS.
renewed;or must have an initial term of one year. (2)If the recipient is the HMIS lead
(iii)The program participant becomes When a new program participant moves agency,as designated by the Continuum
ineligible to receive ESG rental into an assisted unit,the term of the
assistance. of Care in the most recent fiscal year
(i)Project based rental assistance. If rental assistance agreement may be Continuum of Care Homeless Assistance
the)Project-based
ao ed rental
subrecipient ss identifies tc If a extended to cover the initial term of the Grants Competition,it may also use ESG
permanent unit that mets ESG program participant's lease.If the funds to pay the costs of:
manenthousingan becomes available program participant's lease is renewed, (i)Hosting and maintaining HMIS
requirements a participant is the rental assistance agreement may be software or data;
beforea identified programto las the unit,t,the recipient renewed or extended,as needed,up to (ii) Backing up,recovering,or
subrecipient may enter into a rental the maximum number of months for repairing HMIS software or data;
or su i e assistance bragreement with the owner to which the program participant remains (iii)Upgrading,customizing,and
reserve the unit and subsidize its rent in eligible.However,under no enhancing the HMIS;
ce with the following circumstances may the recipient or (iv)Integrating and warehousing data,
accordance e odancnts: subrecipient commit ESG funds to be including development of a data
r (1)The rental assistance agreement expended beyond the expenditure warehouse for use in aggregating data
may cover one or more permanent deadline in§576.203 or commit funds from subrecipients using multiple
for a future ESG grant before the grant software systems;
housing units in the same building. y
is awarded.
Each unit covered by the rental (v)Administering the system;
assistance agreement("assisted unit") (j) Changes in household composition. (vi)Reporting to providers,the
may only be occupied by program The limits on the assistance under this Continuum of Care,and HUD;and
participants,except as provided under section apply to the total assistance an (vii)Conducting training on using the
individual receives,either as an system or a comparable database,
paragraph(i)(4)of this section. individual or aspart of a family.
y P
(2)The recipient or subrecipient may y' including traveling to the training.
pay up to 100 percent of the first g 576.107 HMIS component. (3)If the subrecipient is a victim
month's rent,provided that a program (a)Eligible costs. services provider or a legal services
participant signs a lease and moves into (1)The recipient or subrecipient may provider,it may use ESG funds to
the unit before the end of the month for use ESG funds to pay the costs of establish and operate a comparable
which the first month's rent is paid.The contributing data to the HMIS database that collects client-level data
rent paid before a program participant designated by the Continuum of Care for over time(i.e., longitudinal data)and
moves into the unit must not exceed the the area,including the costs of: generates unduplicated aggregate
rent to be charged under the program (i)Purchasing or leasing computer reports based on the data.Information
participant's lease and must be included hardware; entered into a comparable database
when determining that program (ii)Purchasing software or software must not be entered directly into or
participant's total rental assistance. licenses; provided to an HMIS.
(3)The recipient or subrecipient may (iii)Purchasing or leasing equipment, (b) General restrictions.Activities
make monthly rental assistance including telephones,fax machines,and funded under this section must comply
payments only for each whole or partial furniture; with HUD's standards on participation,
month an assisted unit is leased to a (iv)Obtaining technical support; data collection,and reporting under a
program participant.When a program (v)Leasing office space; local HMIS.
gives
financial assistance under paragraph(a) assistance,or living in a housing unit the program participant an enforceable
of this section.The recipient may also receiving project-based rental assistance leasehold interest under state law and
licant meets one or both of
75982 Federal Register/Vol. 76, No. 233/Monday, December 5, 2011/Rules and Regulations
§576.108 Administrative activities. services,accounting services,and audit consolidated plan in accordance with
(a)Eligible costs.The recipient may services;and the requirements in 24 CFR part 91,and
use up to 7.5 percent of its ESG grant (iv)Other costs for goods and services each territory must submit and obtain
for the payment of administrative costs required for administration of the HUD approval of a consolidated plan in
related to the planning and execution of program,including rental or purchase of accordance with the requirements that
ESG activities.This does not include equipment,insurance,utilities,office apply to local governments under 24
staff and overhead costs directly related supplies,and rental and maintenance CFR part 91.As provided under 24 CFR
to carrying out activities eligible under (but not purchase)of office space. 85.12,HUD may impose special
§576.101 through§576.107,because (2) Training on ESG requirements. conditions or restrictions on a grant, if
those costs are eligible as part of those Costs of providing training on ESG the recipient is determined to be high
activities. Eligible administrative costs requirements and attending HUD- risk.
include: sponsored ESG trainings. (b)Amendments.The recipient must
(1) General management, oversight (3) Consolidated plan.Costs of amend its approved consolidated plan
and coordination.Costs of overall preparing and amending the ESG and in order to make a change in its
program management,coordination, homelessness-related sections of the allocation priorities;make a change in
monitoring,and evaluation.These costs consolidated plan in accordance with its method of distributing funds;carry
include,but are not limited to, ESG requirements and 24 CFR part 91. out an activity not previously described
necessary expenditures for the (4)Environmental review.Costs of in the plan;or change the purpose,
following: carrying out the environmental review scope,location,or beneficiaries of an
(i)Salaries,wages,and related costs of responsibilities under§576.407. activity.The amendment must be
. the recipient's staff,the staff of (b) Sharing requirement. (1)States.If completed and submitted to HUD in
subrecipients,or other staff engaged in the recipient is a State,the recipient accordance with the requirements under
program administration. In charging must share its funds for administrative 24 CFR 91.505.
costs to this category,the recipient may costs with its subrecipients that are
either include the entire salary,wages, units of general purpose local §576.201 Matching requirement.
and related costs allocable to the government.The amount shared must (a)Required amount of matching
program of each person whose primary be reasonable under the circumstances. contributions. (1)Except as provided
responsibilities with regard to the The recipient may share its funds for under paragraphs(a)(2)and(a)(3)of this
program involve program administrative costs with its section,the recipient must make
administration assignments,or the pro subrecipients that are private nonprofit matching contributions to supplement
rata share of the salary,wages,and organizations. the recipient's ESG program in an
related costs of each person whose job (2) Territories,metropolitan cities, amount that equals the amount of ESG
includes any program administration and urban counties.If the recipient is a funds provided by HUD.
assignments.The recipient may use territory,metropolitan city,or urban (2)If the recipient is a State,the first
onlyone of these methods for each county,the recipient may share its $100,000 of the fiscal year grant is not
funds for administrative costs with its required to be matched.However,the
fiscal year grant.Program recipient must transfer the benefit of
administration assignments include the subrecipients. this exception to its subrecipients that
following: §576.109 Indirect costs. are least capable of providing the
(A)Preparing program budgets and (a)In general.ESG grant funds may be recipient with matching contributions.
schedules,and amendments to those (3)This matchingrequirement does
budgets and schedules; used to pay indirect costs in accordance q
g with OMB Circular A-87 (2 CFR part not apply if the recipient is a territory.
(B)Developing systems for assuring (b)Eligible sources of matching
compliance with program requirements; 225),or A-122 (2 CFR part 230),as
p p g q applicable. contributions. (1)Subject to the
(C)Developing interagency requirement for States underparagraph
a agreements and agreements with (b)Allocation.Indirect costs may be q
g g allocated to each eligible activity under (a)(2)of this section,the recipient may
subrecipients and contractors to carry §576.101 through§576.108,so long as require its subrecipients to make
out program activities; that allocation is consistent with an matching contributions consistent with
(D)Monitoring program activities for indirect cost rate proposal developed in this section to help meet the recipient's
progress and compliance with program accordance with OMB Circular A-87(2 matching requirement.
requirements; (2)Matching contributions may be
CFR part 225),or A-122(2 CFR part
(E)Preparing reports and other 230),as applicable. obtained from any source,including any
documents directly related to the Federal source other than the ESG
program for submission to HUD; (c)Expenditure limits.The indirect program,as well as state,local,and
(F)Coordinating the resolution of costs charged to an activity subject to an private sources. However,the following
audit and monitoring findings; expenditure limit under§576.100 must requirements apply to matching
(G)Evaluating program results against be added to the direct costs charged for contributions from a Federal source of
that activity,when determining the total
stated objectives;and costs subject to the expenditure limit. funds:
(H)Managing or supervising persons (i)The recipient must ensure the laws
whose primary responsibilities with Subpart C—Award and Use of Funds governing any funds to be used as
regard to the program include such matching contributions do not prohibit
assignments as those described in §576.200 Submission requirements and those funds from being used to match
paragraph(a)(1)(i)(A)through(G)of this grant approval. Emergency Solutions Grant(ESG)funds.
section. (a)Application submission and (ii)If ESG funds are used to satisfy the
(ii)Travel costs incurred for approval.In addition to meeting the matching requirements of another
monitoring of subrecipients; application submission requirements in Federal program,then funding from that
(iii)Administrative services 24 CFR part 5,subpart K,each State, program may not be used to satisfy the
performed under third-party contracts urban county,or metropolitan city must matching requirements under this
or agreements,including general legal submit and obtain HUD approval of a section.
g office space; local HMIS.
gives
financial assistance under paragraph(a) assistance,or living in a housing unit the program participant an enforceable
of this section.The recipient may also receiving project-based rental assistance leasehold interest under state law and
licant meets one or both of
Federal Register/Vol. 76, No. 233/Monday, December 5, 2011/Rules and Regulations 75983 .
(c)Recognition of matching established,along with its regular general purpose local government,the
contributions. (1)In order to meet the indirect cost rate,a special rate for subrecipient must obligate all of those
matching requirement,the matching allocating to individual projects or funds by a subgrant agreement with, or
contributions must meet all programs the value of those a letter of award requiring payment to,
requirements that apply to the ESG contributions. a private nonprofit organization;a
funds provided by HUD,except for the (f) Costs paid by program income. procurement contract;or the written
expenditure limits in§576.100. Costs paid by program income shall designation of a department within the
(2)The matching contributions must count toward meeting the recipient's government of the subrecipient to
be provided after the date that HUD matching requirements,provided the directly carry out an eligible activity.
signs the grant agreement. costs are eligible ESG costs that (2)Funds allocated to metropolitan
(3)To count toward the required supplement the recipient's ESG cities, urban counties,and territories.
match for the recipient's fiscal year program. Within 180 days after the date that HUD
grant,cash contributions must be signs the grant agreement(or a grant
expended within the expenditure §576.202 Means of carrying out grant amendment for reallocation of funds)
deadline in§576.203,and noncash activities. with the metropolitan city,urban
contributions must be made within the (a) States.If the recipient is a State, county,or territory,the recipient must
expenditure deadline in§576.203. the recipient may use an amount obligate all the grant amount,except the
(4)Contributions used to match a consistent with the restrictions in amount for its administrative costs.This
previous ESG grant may not be used to §576.100 and§576.108 to carry out requirement is met by an agreement
match a subsequent ESG grant. administrative activities through its with,or a letter of award requiring
(5)Contributions that have been or employees or procurement contracts.If payment to,a subrecipient;a
will be counted as satisfying a matching the recipient is a State,and has been procurement contract; or a written
requirement of another Federal grant or identified as the HMIS lead by the designation of a department within the
award may not count as satisfying the Continuum of Care,the State may use government of the recipient to directly
matching requirement of this section. funds to carry out HMIS activities set carry out an eligible activity. If the
(d)Eligible types of matching forth in§576.107(a)(2).The recipient recipient is an urban county,this
contributions.The matching must subgrant the remaining funds in its requirement may also be met with an
requirement may be met by one or both fiscal year grant to: agreement with,or letter of award
of the following: (1)Units of general purpose local requiring payment to,a member
(1) Cash contributions.Cash government in the State,which may government,which has designated a
expended for allowable costs,as defined include metropolitan cities and urban department to directly carry out an
in OMB Circulars A-87(2 CFR part 225) counties that receive ESG funds directly eligible activity.
and A-122 (2 CFR part 230),of the from HUD;or (b)Expenditures.The recipient must
recipient or subrecipient. (2)Private nonprofit organizations, draw down and expend funds from each
(2)Noncash contributions.The value provided that for emergency shelter year's grant not less than once during
of any real property,equipment,goods, activities the recipient obtains a each quarter of the recipient's program
or services contributed to the recipient's certification of approval from the unit of year. All of the recipient's grant must be
or subrecipient's ESG program, general purpose local government for expended for eligible activity costs
provided that if the recipient or the geographic area in which those within 24 months after the date HUD
subrecipient had to pay for them with activities are to be carried out. signs the grant agreement with the
grant funds,the costs would have been (b)Recipients other than States; recipient.For the purposes of this
allowable.Noncash contributions may subrecipients.The recipient,if it is not paragraph,expenditure means either an
also include the purchase value of any a State,and all subrecipients may carry actual cash disbursement for a direct
donated building. out all eligible activities through their charge for a good or service or an
(e)Calculating the amount of noncash employees,procurement contracts,or indirect cost or the accrual of a direct
contributions.(1)To determine the subgrants to private nonprofit charge for a good or service or an
value of any donated material or organizations. If the recipient is an indirect cost.
building,or of any lease,the recipient urban county,it may carry out activities (c) Payments to subrecipients.The
must use a method reasonably through any of its member governments, recipient must pay each subrecipient for
calculated to establish the fair market so long as the county applies to its allowable costs within 30 days after
value. members the same requirements that are receiving the subrecipient's complete
(2)Services provided by individuals applicable to local government payment request.This requirement also
must be valued at rates consistent with subrecipients under this part. applies to each subrecipient that is a
those ordinarily paid for similar work in unit of general purpose local
the recipient's or subrecipient's §576.203 Obligation,expenditure,and
organization. If the recipient or payment requirements. government.
subrecipient does not have employees (a) Obligation of funds. (1)Funds Subpart D—Reallocations
performing similar work,the rates must allocated to States. (i)Within 60 days
be consistent with those ordinarily paid from the date that HUD signs the grant §576.300 in general.
by other employers for similar work in agreement with the State(or grant (1)Funds not awarded by HUD due to
the same labor market. amendment for reallocated funds),the failure by the recipient to submit and
(3)Some noncash contributions are recipient must obligate the entire grant, obtain HUD approval of a consolidated
real property,equipment,goods,or except the amount for its administrative plan will be reallocated in accordance
services that,if the recipient or costs.This requirement is met by a with §§576.301 through 576.303.
subrecipient had to pay for them with subgrant agreement with,or a letter of (2)Recaptured funds will be awarded
grant funds,the payments would have award requiring payment from the grant by formula.In October and April each
been indirect costs.Matching credit for to,a subrecipient. year, HUD will determine if the amount
these contributions must be given only (ii)Within 120 days after the date that of recaptured funds is at least 30 percent
if the recipient or subrecipient has the State obligates its funds to a unit of of the most recent fiscal year
graph(a) assistance,or living in a housing unit the program participant an enforceable
of this section.The recipient may also receiving project-based rental assistance leasehold interest under state law and
licant meets one or both of
75984 Federal Register/Vol. 76, No. 233/Monday, December 5, 2011/Rules and Regulations
appropriation.If so,HUD will amend all (1)A substantial amendment to its the administration and operation of the
existing grants and reallocate the funds. approved consolidated plan in HMIS.
If the amount is less than 30 percent of accordance with 24 CFR part 91;or (b) Coordination with other targeted
the most recent fiscal year (2)If the eligible recipient does not homeless services.The recipient and its
appropriation,the funds will be have an approved consolidated plan,an subrecipients must coordinate and
reallocated in conjunction with the next abbreviated consolidated plan that integrate,to the maximum extent
fiscal year's allocation of funding. meets the requirements in the Federal practicable,ESG-funded activities with
Register notice or notification letter other programs targeted to homeless
§576.301 Metropolitan cities and urban from HUD. people in the area covered by the
counties. (d)Restrictions that apply to Continuum of Care or area over which
Grant funds returned by a reallocated amounts.The same the services are coordinated to provide
metropolitan city or urban county will requirements that apply to grant funds a strategic,community-wide system to
be reallocated as follows: allocated under§576.3 apply to grant prevent and end homelessness for that
(a)Eligible recipient. HUD will make funds reallocated under this section. area.These programs include:
the funds available to the State in which (1)Shelter Plus Care Program(24 CFR
the city or county is located. §576.303 Territories. part 582);
(b)Notification of availability.HUD (a) General.Grant funds returned by (2)Supportive Housing Program(24
will promptly notify the State of the a territory will be reallocated to other CFR part 583);
availability of the amounts to be territories,then if funds remain,to (3)Section 8 Moderate Rehabilitation
reallocated. States. Program for Single Room Occupancy
(c)Application requirement.Within (b)Allocation method.The funds will Program for Homeless Individuals (24
45 days after the date of notification,the be allocated as follows: CFR part 882);
State must submit to HUD a substantial (1)For territories,the funds will be (4)HUD—Veterans Affairs Supportive
amendment to its consolidated plan in allocated among the territories in direct Housing(HUD—VASH)(division K,title
accordance with 24 CFR part 91. proportion with each territory's share of II,Consolidated Appropriations Act,
(d)Restrictions that apply to the total population of all of the eligible 2008,Pub. L. 110-161 (2007), 73 FR
reallocated amounts.The same territories.If HUD determines that a 25026(May 6,2008));
requirements that apply to grant funds territory failed to spend its funds in (5)Education for Homeless Children
allocated under§576.3 apply to grant accordance with ESG requirements, and Youth Grants for State and Local
funds reallocated under this section, then HUD may exclude the territory Activities(title VII—B of the McKinney-
except that the State must distribute the from the allocation of reallocation Vento Homeless Assistance Act(42
reallocated funds: amounts under this section. U.S.C. 11431 et seq.));
(1)To private nonprofit organizations (2)For States,the funds will be (6)Grants for the Benefit of Homeless
and units of general purpose local allocated to each State in direct Individuals(section 506 of the Public
government in the geographic area in proportion with each State's share of the Health Services Act(42 U.S.C. 290aa—
which the metropolitan city or urban total amount of funds allocated to States 5));
county is located; under§576.3. (7)Healthcare for the Homeless(42
(2)If funds remain,to private (c)Notification of availability.HUD CFR part 51c);
nonprofit organizations and units of will notify eligible recipients of the (8)Programs for Runaway and
general purpose local government availability of the fund by a letter or Homeless Youth(Runaway and
located throughout the State. Federal Register notice,which will Homeless Youth Act(42 U.S.C. 5701 et
§576.302 States. specify how the awards of funds will be seq.));
made.
Grant funds returned by a State will (9)Projects for Assistance in
(d)Application requirements.Within Transition from Homelessness(part C of
be reallocated as follows: 45 days after the date of notification,the title V of the Public Health Service Act
(a)Eligible recipients.HUD will make eligible recipient must submit to HUD a (42 U.S.C. 290cc-21 et seq.));
the funds available: substantial amendment to its (10)Services in Supportive Housing
(1)To metropolitan cities and urban consolidated plan in accordance with 24 Grants(section 520A of the Public
counties in the State that were not CFR part 91. Health Service Act);
allocated funds under§576.3 because (e)Restrictions that apply to (11)Emergency Food and Shelter
the amount they would have been Program(title III of the McKinney-Vento
allocated did not meet the minimum reallocated amounts.The same Homeless Assistance Act(42 U.S.C.
requirements that apply to grant funds
requirement under§576.3(b)(2); allocated under§576.3 apply to grant 11331 et seq.));
(2)If funds remain,to county funds reallocated under this section. (12)Transitional Housing Assistance
governments in the State other than Grants for Victims of Sexual Assault,
urban counties; Subpart E—Program Requirements Domestic Violence,Dating Violence,
(3)Then,if funds remain,to and Stalking Program(section 40299 of
metropolitan cities and urban counties §576.400 Area-wide systems coordination the Violent Crime Control and Law
in the State that were allocated funds requirements. Enforcement Act(42 U.S.C. 13975));
under§576.3. (a) Consultation with Continuums of (13)Homeless Veterans Reintegration
(b)Notification of availability.HUD Care.The recipient must consult with Program(section 5(a)(1))of the
will notify eligible recipients of the each Continuum of Care that serves the Homeless Veterans Comprehensive
availability of the funds by a recipient's jurisdiction in determining Assistance Act(38 U.S.C.2021);
notification letter or Federal Register how to allocate ESG funds each program (14)Domiciliary Care for Homeless
notice,which will specify how the year;developing the performance Veterans Program(38 U.S.C.2043);
awards of funds will be made. standards for,and evaluating the (15)VA Homeless Providers Grant
(c)Application requirements.Within outcomes of,projects and activities and Per Diem Program(38 CFR part 61);
45 days after the date of notification,the assisted by ESG funds;and developing (16)Health Care for Homeless
eligible recipient must submit to HUD: funding,policies,and procedures for Veterans Program(38 U.S.C.2031);
pril each
been indirect costs.Matching credit for to,a subrecipient. year, HUD will determine if the amount
these contributions must be given only (ii)Within 120 days after the date that of recaptured funds is at least 30 percent
if the recipient or subrecipient has the State obligates its funds to a unit of of the most recent fiscal year
graph(a) assistance,or living in a housing unit the program participant an enforceable
of this section.The recipient may also receiving project-based rental assistance leasehold interest under state law and
licant meets one or both of
Federal Register/Vol. 76, No. 233/Monday, December 5, 2011/Rules and Regulations 75985
(17)Homeless Veterans Dental territory,the recipient must have activities must be coordinated and
Program(38 U.S.C. 2062); written standards for providing integrated to the maximum extent
(18)Supportive Services for Veteran Emergency Solutions Grant(ESG) practicable);
Families Program(38 CFR part 62);and assistance and must consistently apply (vi)Policies and procedures for
(19)Veteran Justice Outreach those standards for all program determining and prioritizing which
Initiative(38 U.S.C.2031). participants.The recipient must eligible families and individuals will
(c)System and program coordination describe these standards in its receive homelessness prevention
with mainstream resources.The consolidated plan. assistance and which eligible families
recipient and its subrecipients must (2)If the recipient is a state: and individuals will receive rapid re-
coordinate and integrate,to the (i)The recipient must establish and housing assistance;
maximum extent practicable,ESG- consistently apply,or require that its (vii)Standards for determining what
funded activities with mainstream subrecipients establish and consistently percentage or amount of rent and
housing,health,social services, apply,written standards for providing utilities costs each program participant
employment,education,and youth ESG assistance. If the written standards must pay while receiving homelessness
programs for which families and are established by the subrecipients,the prevention or rapid re-housing
individuals at risk of homelessness and recipient may require these written assistance;
homeless individuals and families may standards to be: (viii)Standards for determining how
be eligible.Examples of these programs (A)Established for each area covered long a particular program participant
include: by a Continuum of Care or area over will be provided with rental assistance
(1)Public housing programs assisted which the services are coordinated and and whether and how the amount of
under section 9 of the U.S.Housing Act followed by each subrecipient providing that assistance will be adjusted over
of 1937(42 U.S.C. 1437g)(24 CFR parts assistance in that area;or time;and
905,968,and 990); (B)Established by each subrecipient (ix)Standards for determining the
(2)Housing programs receiving and applied consistently within the type,amount,and duration of housing
tenant-based or project-based assistance subrecipient's program. stabilization and/or relocation services
under section 8 of the U.S.Housing Act (ii)Written standards developed by to provide to a program participant,
of 1937(42 U.S.C. 1437f)(respectively the state must be included in the state's including the limits,if any,on the
24 CFR parts 982 and 983); Consolidated Plan.If the written homelessness prevention or rapid re-
(3)Supportive Housing for Persons standards are developed by its housing assistance that each program
with Disabilities(Section 811)(24 CFR subrecipients,the recipient must participant may receive,such as the
part 891); describe its requirements for the maximum amount of assistance,
(4)HOME Investment Partnerships establishment and implementation of maximum number of months the
Program(24 CFR part 92); these standards in the state's program participant receive assistance;
(5)Temporary Assistance for Needy Consolidated Plan. or the maximum number of times the
Families(TANF) (45 CFR parts 260— (3)At a minimum these written program participant may receive
265); standards must include: assistance.
(6)Health Center Program(42 CFR (i)Standard policies and procedures (f)Participation in HMIS.The
part 51c); for evaluating individuals'and families' recipient must ensure that data on all
(7)State Children's Health Insurance eligibility for assistance under persons served and all activities assisted
Program(42 CFR part 457): Emergency Solutions Grant(ESG); under ESG are entered into the
(8)Head Start(45 CFR chapter XIII, (ii)Standards for targeting and applicable community-wide HMIS in
subchapter B); providing essential services related to the area in which those persons and
(9)Mental Health and Substance street outreach; activities are located,or a comparable
Abuse Block Grants(45 CFR part 96); (iii)Policies and procedures for database,in accordance with HUD's
and admission,diversion,referral,and standards on participation,data
(10)Services funded under the discharge by emergency shelters collection,and reporting under a local
Workforce Investment Act(29 U.S.C. assisted under ESG,including standards HMIS.If the subrecipient is a victim
2801 et seq.). regarding length of stay,if any,and service provider or a legal services
(d) Centralized or coordinated safeguards to meet the safety and shelter provider,it may use a comparable
assessment.Once the Continuum of needs of special populations,e.g., database that collects client-level data
Care has developed a centralized victims of domestic violence,dating over time(i.e.,longitudinal data)and
assessment system or a coordinated violence,sexual assault,and stalking; generates unduplicated aggregate
assessment system in accordance with and individuals and families who have reports based on the data.Information
requirements to be established by HUD, the highest barriers to housing and are entered into a comparable database
each ESG-funded program or project likely to be homeless the longest; must not be entered directly into or
within the Continuum of Care's area (iv)Policies and procedures for provided to an HMIS.
must use that assessment system.The assessing,prioritizing,and reassessing
recipient and subrecipient must work individuals'and families'needs for §576.401 Evaluation of program
with the Continuum of Care to ensure essential services related to emergency participant eligibility and needs.
the screening,assessment and referral of shelter; (a)Evaluations.The recipient or its
program participants are consistent with (v)Policies and procedures for subrecipient must conduct an initial
the written standards required by coordination among emergency shelter evaluation to determine the eligibility of
paragraph(e)of this section.A victim providers,essential services providers, each individual or family's eligibility for
service provider may choose not to use homelessness prevention,and rapid re- ESG assistance and the amount and
the Continuum of Care's centralized or housing assistance providers;other types of assistance the individual or
coordinated assessment system. homeless assistance providers;and family needs to regain stability in
(e) Written standards for providing mainstream service and housing permanent housing.These evaluations
ESG assistance. (1)If the recipient is a providers(see§576.400(b)and(c)for a must be conducted in accordance with
metropolitan city,urban county,or list of programs with which ESG-funded the centralized or coordinated
20 days after the date that of recaptured funds is at least 30 percent
if the recipient or subrecipient has the State obligates its funds to a unit of of the most recent fiscal year
graph(a) assistance,or living in a housing unit the program participant an enforceable
of this section.The recipient may also receiving project-based rental assistance leasehold interest under state law and
licant meets one or both of
75986 Federal Register/Vol. 76, No. 233/Monday, December 5, 2011/Rules and Regulations
assessment requirements set forth under (iv)Federal-State Unemployment (1)Written notice to the program
§576.400(d)and the written standards Insurance Program(20 CFR parts 601— participant containing a clear statement
established under§576.400(e). 603,606,609,614-617,625,640,650); of the reasons for termination;
(b)Re-evaluations for homelessness (v)Social Security Disability (2)A review of the decision, in which
prevention and rapid re-housing Insurance(SSDI)(20 CFR part 404); the program participant is given the
assistance. (1)The recipient or (vi)Supplemental Security Income opportunity to present written or oral
subrecipient must re-evaluate the (SSI) (20 CFR part 416); objections before a person other than the
program participant's eligibility and the (vii)Child and Adult Care Food person(or a subordinate of that person)
types and amounts of assistance the who made or approved the termination
program participant needs not less than Program(42 U.S.C. 1766(t)(7 CFR part decision;and
226));
once every 3 months for program (3)Prompt written notice of the final
participants receiving homelessness (viii)Other assistance available under decision to the program participant.
prevention assistance,and not less than the programs listed in§576.400(c). (c)Ability to provide further
once annually for program participants (e)Housing stability case assistance.Termination under this
receiving rapid re-housing assistance.At management.(1)While providing section does not bar the recipient or
a minimum,each re-evaluation of homelessness prevention or rapid re- subrecipient from providing further
eligibility must establish that: housing assistance to a program assistance at a later date to the same
(i)The program participant does not participant,the recipient or subrecipient family or individual.
have an annual income that exceeds 30 must:
percent of median family income for the (i)Require the program participant to §576.403 Shelter and housing standards.
area,as determined by HUD;and meet with a case manager not less than (a)Lead-based paint remediation and
(ii)The program participant lacks once per month to assist the program disclosure.The Lead-Based Paint
sufficient resources and support participant in ensuring long-term Poisoning Prevention Act(42 U.S.C.
networks necessary to retain housing housing stability;and 4821-4846),the Residential Lead-Based
without ESG assistance. (ii)Develop a plan to assist the Paint Hazard Reduction Act of 1992 (42
(2)The recipient or subrecipient may program participant to retain permanent U.S.C.4851-4856),and implementing
require each program participant housing after the ESG assistance ends, regulations in 24 CFR part 35,subparts
receiving homelessness prevention or taking into account all relevant A,B,H,J,K,M,and R apply to all
rapid re-housing assistance to notify the considerations,such as the program shelters assisted under ESG program
recipient or subrecipient regarding participant's current or expected income and all housing occupied by program
changes in the program participant's and expenses;other public or private participants.
income or other circumstances(e.g., assistance for which the program (b)Minimum standards for emergency
changes in household composition)that participant will be eligible and likely to shelters.Any building for which
affect the program participant's need for receive;and the relative affordability of Emergency Solutions Grant(ESG)funds
assistance under ESG.When notified of available housing in the area. are used for conversion,major
a relevant change,the recipient or rehabilitation,or other renovation,must
subrecipient re-evaluate the (2)The recipient or subrecipient is meet state or local government safety
program ntmuste- eligibility and the exempt from the requirement under and sanitation standards,as applicable,
program
and types participant's assistanceb the paragraph(e)(1)(i)of this section if the and the following minimum safety,
ayPViolence Against Women Act of 1994 sanitation,and privacy standards.Any
program participant needs. (42 42 U.S.C. 13701 et seq.)or the Family
(c)Annual income.When q emergency shelter that receives
determining the annual income of an Violence Prevention and Services Act assistance for shelter operations must
individual or family,the recipient or (42 U.S.C. 10401 et seq.)prohibits that also meet the following minimum
subrecipient must use the standard for recipient or subrecipient from making safety,sanitation,and privacy
its shelter or housing conditional on the standards.The recipient mayalso
calculating annual income under 24 acce tance of services. p
CFR 5.609. participant's P establish standards that exceed or add to
(d) Connecting program participants §576.402 Terminating assistance. these minimum standards.
to mainstream and other resources.The (1) Structure and materials.The
recipient and its subrecipients must (a)In general.If a program participant shelter building must be structurally
violates program requirements,the sound toprotect residents from the
assist each program participant,as P
needed,to obtain: recipient or subrecipient may terminate elements and not pose any threat to
(1)Appropriate supportive services, the assistance in accordance with a health and safety of the residents.Any
formal process established by the renovation(includingmajor
including assistance in obtaining 1
permanent housing,medical health recipient or subrecipient that recognizes rehabilitation and conversion)carried
treatment,mental health treatment, the rights of individuals affected.The out with ESG assistance must use
counseling,supervision,and other recipient or subrecipient must exercise Energy Star and WaterSense products
services essential for achieving judgment and examine all extenuating and appliances.
independent living;and circumstances in determining when (2)Access.The shelter must be
(2)Other Federal,State,local,and violations warrant termination so that a accessible in accordance with Section
private assistance available to assist the program participant's assistance is 504 of the Rehabilitation Act(29 U.S.C.
program participant in obtaining terminated only in the most severe 794)and implementing regulations at 24
CFR part 8;the Fair Housing stability, cases.including: Act(42
(i)Medicaid(42 CFR chapter IV, (b)Program participants receiving U.S.C. 3601 et seq.)and implementing
subchapter C): rental assistance or housing relocation regulations at 24 CFR part 100;and Title
(ii)Supplemental Nutrition and stabilization services.To terminate II of the Americans with Disabilities Act
Assistance Program(7 CFR parts 271— rental assistance or housing relocation (42 U.S.C. 12131 et seq.) and 28 CFR
283);. and stabilization services to a program part 35;where applicable. 1
(iii)Women,Infants and Children participant,the required formal process, (3)Space and security.Except where
(WIC)(7 CFR part 246); at a minimum,must consist of: the shelter is intended for day use only,
fiscal year
graph(a) assistance,or living in a housing unit the program participant an enforceable
of this section.The recipient may also receiving project-based rental assistance leasehold interest under state law and
licant meets one or both of
Federal Register/Vol. 76, No. 233/Monday, December 5, 2011/Rules and Regulations 75987
the shelter must provide each program belongings.Each resident must be subrecipient may,with respect to
participant in the shelter with an provided an acceptable place to sleep. individuals or families occupying
acceptable place to sleep and adequate (3)Interior air quality.Each room or housing owned by the subrecipient,or
space and security for themselves and space must have a natural or mechanical any parent or subsidiary of the
their belongings. means of ventilation.The interior air subrecipient,carry out the initial
(4)Interior air quality.Each room or must be free of pollutants at a level that evaluation required under§576.401 or
space within the shelter must have a might threaten or harm the health of administer homelessness prevention
natural or mechanical means of residents. assistance under§576.103.
ventilation.The interior air must be free (4) Water supply.The water supply (b)Individual conflicts of interest.For
of pollutants at a level that might must be free from contamination. the procurement of goods and services,
threaten or harm the health of residents. (5) Sanitary facilities.Residents must the recipient and its subrecipients must
(5) Water supply.The shelter's water have access to sufficient sanitary comply with the codes of conduct and
supply must be free of contamination. facilities that are in proper operating conflict of interest requirements under
(6) Sanitary facilities.Each program condition,are private,and are adequate 24 CFR 85.36(for governments)and 24
participant in the shelter must have for personal cleanliness and the CFR 84.42 (for private nonprofit
access to sanitary facilities that are in disposal of human waste. organizations).For all other transactions
proper operating condition,are private, (6) Thermal environment.The and activities,the following restrictions
and are adequate for personal housing must have any necessary apply:
cleanliness and the disposal of human heating/cooling facilities in proper (1)Conflicts prohibited.No person
waste. operating condition. described in paragraph(b)(2)of this
(7) Thermal environment.The shelter (7)Illumination and electricity.The section who exercises or has exercised
structure must have adequate natural or anyfunctions or responsibilities with
must have any necessary heating/ P
cooling facilities in proper operating artificial illumination to permit normal respect to activities assisted under the
condition. indoor activities and support health and ESG program,or who is in a position to
(8)Illumination and electricity.The safety.There must be sufficient participate in a decision-making process
electrical sources to permit the safe use orgain inside information with regard
shelter must have adequate natural or g
of electrical appliances in the structure. to activities assisted under the program,
artificial illumination to permit normal P g
indoor activities and support health and (8)Food preparation.All food may obtain a financial interest or benefit
safety.There must be sufficient preparation areas must contain suitable from an assisted activity;have a
electrical sources to permit the safe use space and equipment to store,prepare, financial interest in any contract,
of electrical appliances in the shelter. and serve food in a safe and sanitary subcontract,or agreement with respect
(9)Food preparation.Food manner. to an assisted activity;or have a
' preparation areas,if any,must contain (9) Sanitary conditions.The housing financial interest in the proceeds
suitable space and equipment to store, must be maintained in a sanitary derived from an assisted activity,either
prepare,and serve food in a safe and condition. for him or herself or for those with
sanita manner. (10)Fire safety. (i)There must be a whom he or she has family or business
�' second means of exiting the building in
(10)Sanitary conditions.The shelter the event of fire or other emergency. ties,during his or her tenure or during
must be maintained in a sanitary (ii)Each unit must include at least the one-year period following his or her
condition. one battery-operated or hard-wired tenure.
(11)Fire safety.There must be at least smoke detector,in proper working (2)Persons covered.The conflict-of-
one working smoke detector in each condition,on each occupied level of the interest provisions of paragraph(b)(1)of
occupied unit of the shelter.Where unit. Smoke detectors must be located, this section apply to any person who is
possible,smoke detectors must be to the extent practicable,in a hallway an employee,agent,consultant,officer,
located near sleeping areas.The fire adjacent to a bedroom.If the unit is or elected or appointed official of the
alarm system must be designed for occupied by hearing impaired persons, recipient or its subrecipients.
hearing-impaired residents.All public smoke detectors must have an alarm (3)Exceptions.Upon the written
areas of the shelter must have at least system designed for hearing-impaired request of the recipient, HUD may grant
one workingsmoke detector.There an exception to the provisions of this
persons in each bedroom occupied by a subsection on a case-by-case basis,
must also be a second means of exiting hearing-impaired person.
the building in the event of fire or other (iii)The public areas of all housing taking into account the cumulative
emergency. must be equipped with a sufficient effects of the criteria in paragraph
(c)Minimum standards for permanent number,but not less than one for each (b)(3)(ii)of this section, provided that
housing.The recipient or subrecipient area,of battery-operated or hard-wired the recipient has satisfactorily met the
cannot use ESG funds to help a program smoke detectors.Public areas include, threshold requirements of paragraph
participant remain or move into housing but are not limited to,laundry rooms, (b)(3)(i)of this section.
that does not meet the minimum community rooms,day care centers, (i) Threshold requirements.HUD will
habitability standards provided in this hallways,stairwells,and other common consider an exception only after the
paragraph(c).The recipient may also areas. recipient has provided the following
establish standards that exceed or add to documentation:
these minimum standards. §576.404 Conflicts of interest. (A)If the recipient or subrecipient is
(1) Structure and materials.The (a) Organizational conflicts of interest. a government,disclosure of the nature
structures must be structurally sound to The provision of any type or amount of of the conflict,accompanied by an
protect residents from the elements and ESG assistance may not be conditioned assurance that there has been public
not pose any threat to the health and on an individual's or family's disclosure of the conflict and a
safety of the residents. acceptance or occupancy of emergency description of how the public disclosure
(2) Space and security.Each resident shelter or housing owned by the was made;and
must be provided adequate space and recipient,the subrecipient,or a parent (B)An opinion of the recipient's
security for themselves and their or subsidiary of the subrecipient.No attorney that the interest for which the
sehold interest under state law and
licant meets one or both of
J 75988 Federal Register/Vol. 76, No. 233/Monday, December 5, 2011/Rules and Regulations
exception is sought would not violate (c)To the maximum extent that those structures are used for
state or local law. practicable,the recipient or subrecipient inherently religious activities.Solutions
(ii)Factors to be considered for must involve homeless individuals and ESG funds may be used for the
exceptions.In determining whether to families in constructing,renovating, rehabilitation of structures only to the
grant a requested exception after the maintaining,and operating facilities extent that those structures are used for
recipient has satisfactorily met the assisted under ESG,in providing conducting eligible activities under the
threshold requirements under paragraph services assisted under ESG,and in ESG program.Where a structure is used
(b)(3)(i)of this section,HUD must providing services for occupants of for both eligible and inherently religious
conclude that the exception will serve facilities assisted under ESG.This activities,ESG funds may not exceed
to further the purposes of the ESG involvement may include employment the cost of those portions of the
program and the effective and efficient or volunteer services. rehabilitation that are attributable to
administration of the recipient's or eligible activities in accordance with the
subrecipient's program or project,taking §576.406 Faith-based activities. cost accounting requirements applicable
into account the cumulative effect of the (a)Organizations that are religious or to ESG funds. Sanctuaries,chapels,or
following factors,as applicable: faith based are eligible,on the same other rooms that an ESG-funded
basis as any other organization,to religious congregation uses as its
(A)Whether the exception would g
provide a significant cost benefit or an receive ESG funds.Neither the Federal principal place of worship,however,are
Government nor a State or local ineligible for funded improvements
essential degree of expertise to the g P
program or project that would otherwise government receiving funds under ESG under the program.Disposition of real
shall discriminate against an after the term of the grant,or
not be available; property
(B)Whether an opportunity was organization on the basis of the any change in use of the property during
provided for open competitive bidding organization's religious character or the term of the grant,is subject to
affiliation.
or negotiation; government-wide regulations governing
person(C)Whether the affectedhas (b)Organizations that are directly real property disposition(see 24 CFR
funded under the ESG program may not parts 84 and 85).
withdrawn from his or her functions, engage in inherently religious activities, (f)If the recipient or a subrecipient
responsibilities or the decision-making such as worship,religious instruction, that is a local government voluntarily
process with respect to the specific or proselytization as part of the contributes its own funds to supplement
activity in question; programs or services funded under ESG. federally funded activities,the recipient
(D)Whether the interest or benefit If an organization conducts these or subrecipient has the option to
was present before the affected person activities,the activities must be offered segregate the Federal funds or
was in the position described in separately,in time or location,from the commingle them.However,if the funds
paragraph(b)(1)of this section; programs or services funded under ESG, are commingled,this section applies to
(E)Whether undue hardship results to and participation must be voluntary for all of the commingled funds.
the recipient,the subrecipient,or the program participants.
person affected,when weighed against (c)Any religious organization that §576.407 Other Federal requirements.
the public interest served by avoiding receives ESG funds retains its (a) General.The requirements in 24
the prohibited conflict;and independence from Federal,State,and CFR part 5,subpart A are applicable,
(F)Any other relevant considerations. local governments,and may continue to including the nondiscrimination and j
(c)Contractors.All contractors of the carry out its mission,including the equal opportunity requirements at 24
recipient or subrecipient must comply definition,practice,and expression of CFR 5.105(a).Section 3 of the Housing
with the same requirements that apply its religious beliefs,provided that the and Urban Development Act of 1968,12
to subrecipients under this section. religious organization does not use U.S.C. 1701u,and implementing
§576.405 Homeless participation. direct ESG funds to support any regulations at 24 CFR part 135 apply,
inherently religious activities,such as except that homeless individuals have
(a)Unless the recipient is a State,the worship,religious instruction,or priority over other Section 3 residents in
recipient must provide for the proselytization.Among other things, accordance with§576.405(c).
participation of not less than one faith-based organizations may use space (b)Affirmative outreach.The
homeless individual or formerly in their facilities to provide ESG-funded recipient or subrecipient must make
homeless individual on the board of services,without removing religious art, known that use of the facilities,
directors or other equivalent policy- icons,scriptures,or other religious assistance,and services are available to
making entity of the recipient,to the symbols. In addition,an ESG-funded all on a nondiscriminatory basis. If it is
extent that the entity considers and religious organization retains its unlikely that the procedures that the
makes policies and decisions regarding authority over its internal governance, recipient or subrecipient intends to use
any facilities, services,or other and the organization may retain to make known the availability of the
assistance that receive funding under religious terms in its organization's facilities,assistance,and services will to
Emergency Solutions Grant(ESG). name,select its board members on a reach persons of any particular race,
(b)If the recipient is unable to meet religious basis,and include religious color,religion,sex,age,national origin,
requirement under paragraph(a),it references in its organization's mission familial status,or disability who may
must instead develop and implement a statements and other governing qualify for those facilities and services,
plan to consult with homeless or documents. the recipient or subrecipient must
formerly homeless individuals in (d)An organization that receives ESG establish additional procedures that
considering and making policies and funds shall not,in providing ESG ensure that those persons are made
decisions regarding any facilities, assistance,discriminate against a aware of the facilities,assistance,and
services,or other assistance that receive program participant or prospective services.The recipient and its
funding under Emergency Solutions program participant on the basis of subrecipients must take appropriate
Grant(ESG).The plan must be included religion or religious belief. steps to ensure effective communication
in the annual action plan required (e)ESG funds may not be used for the with persons with disabilities including,
under 24 CFR 91.220. rehabilitation of structures to the extent but not limited to,adopting procedures
to,adopting procedures
percentage of recovered Rehabilitation Act(29 U.S.C. 794)and property after the submission of the
hold interest under state law and
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tice Act,and breach of this provision shall be regarded as a material breach of contract.The contractor shall insert a similar provision
In all subcontracts for services to be covered by any contract resulting from this Invitation to Bid.
TAXES-Purchases made by the State of Nebraska are exempt from the payment of Federal Excise Taxes,and exemption certificates will be furnished on request.State
and local taxes are exempt by State Statute Section 77-2704(I)(m)R.R.S.1943 and must not be Included in the bid prices.Exemption by statute precludes the furnishing
of State exemption certificates. '
DRUG POUCY-Bidder certifies that it maintains a drug free work place environment to ensure worker safety and workplace Integrity. Contractor agrees to provide a
copy of its drug free workplace policy at any time upon request by the State.
GRIEVANCE AND PROTEST-Grievance and protest procedure Is available by contacting the buyer.Protest must be filed within ten(10)clays of award.
NE ACCESS TECHNOLOGY STANDARDS-Vendor agrees to ensure compliance with Nebraska Access Technology Standards. See website at:
http•/www.nitc.stale.ne.us/standardslaccessibility/
Revised:02/2004
Page 4 of 4 R47 i0(pasch0n,imos
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C F C F W w w fg F A F W w w -
Federal Register/Vol. 76, No. 233/Monday, December 5, 2011/Rules and Regulations 75989
that will make available to interested materials practicable,consistent with 49 CFR part 24,replacement dwellings
persons information concerning the maintaining a satisfactory level of must also contain the accessibility
location of assistance,services,and competition,where the purchase price features needed by displaced persons
facilities that are accessible to persons of the item exceeds$10,000 or the value with disabilities.
with disabilities.Consistent with Title of the quantity acquired by the (2)Displaced Person. (i)For purposes
VI and Executive Order 13166, preceding fiscal year exceeded$10,000; of paragraph(c)of this section,the term
recipients and subrecipients are also procuring solid waste management "displaced person"means any person
required to take reasonable steps to services in a manner that maximizes (family,individual,business,nonprofit
ensure meaningful access to programs energy and resource recovery;and organization,or farm,including any
and activities for limited English establishing an affirmative procurement corporation,partnership,or association)
proficiency(LEP)persons. program for procurement of recovered that moves from real property,or moves
(c) Uniform Administrative materials identified in the EPA personal property from real property,.
Requirements.The requirements of 24 guidelines. permanently,as a direct result of
CFR part 85 apply to the recipient and acquisition,rehabilitation,or
subrecipients that are units of general §576.408 Displacement,relocation,and demolition for a project assisted under
purpose local government,except that acquisition. the ESG program.This includes any
24 CFR 85.24 and 85.42 do not apply, (a)Minimizing displacement. permanent,involuntary move for an
and program income is to be used as Consistent with the other goals and assisted project,including any
match under 24 CFR 85.25(g).The objectives of Emergency Solutions Grant permanent move from the real property
requirements of 24 CFR part 84 apply to (ESG),the recipient and its that is made:
subrecipients that are private nonprofit subrecipients must assure that they have (A)After the owner(or person in
organizations,except that 24 CFR 84.23 taken all reasonable steps to minimize control of the site)issues a notice to
and 84.53 do not apply,and program the displacement of persons(families, move permanently from the property or
income is to be used as the nonfederal individuals,businesses,nonprofit refuses to renew an expiring lease,if the
share under 24 CFR 84.24(b).These organizations,and farms)as a result of move occurs on or after:
regulations include allowable costs and a project assisted under Emergency (I)The date of the submission by the
Solutions Grant(ESG). recipient(or subrecipient,as applicable)
non-Federal audit requirements. P P� PP •
(d)Environmental review (b) Temporary relocation not of an application for assistance to HUD
responsibilities. (1)Activities under this permitted.No tenant-occupant of (or the recipient,as applicable)that is
part are subject to environmental review housing(a dwelling unit)that is later approved and funded if the
by HUD under 24 CFR part 50.The converted into an emergency shelter recipient(or subrecipient,as applicable)
recipient shall supply all available, may be required to relocate temporarily has site control as evidenced by a deed,
relevant information necessary for HUD for a project assisted with ESG funds,or sales contract,or option contract to
toperform for each property anybe required to move to another unit in acquire the property;or
P Pq i the same building/complex.When aP P y'
environmental review required by24 (II)The date on which the recipient
CFR part 50.The recipient also shall tenant moves for a project assisted with (or subrecipient,as applicable)selects
carry out mitigating measures required ESG funds under conditions that trigger the applicable site,if the recipient(or
by HUD or select alternate eligible the Uniform Relocation Assistance and subrecipient,as applicable)does not
property.HUD may eliminate from Real Property Acquisition Policies Act have site control at the time of the
consideration any application that of 1970(URA),42 U.S.C.4601-4655,as application,provided that the recipient
would require an Environmental Impact described in paragraph(c)of this (or subrecipient,as applicable)
Statement(EIS). section,the tenant should be treated as eventually obtains control over the site;
(2)The recipient or subrecipient,or permanently displaced and offered (B)Before the date described in
any contractor of the recipient or relocation assistance and payments paragraph(c)(2)(i)(A)of this section,if
subrecipient,may not acquire, consistent with that paragraph. the recipient or HUD determines that
rehabilitate,convert,lease,repair, (c)Relocation assistance for displaced the displacement resulted directly from
dispose of,demolish,or construct persons. (1)In general.A displaced acquisition,rehabilitation,or
property for a project under this part,or person(defined in paragraph(c)(2)of demolition for the project;or
commit or expend HUD or local funds this section)must be provided (C)By a tenant-occupant of a dwelling
for eligible activities under this part, relocation assistance at the levels unit and the tenant moves after
until HUD has performed an described in,and in accordance with, execution of the agreement covering the
environmental review under 24 CFR the URA and 49 CFR part 24.A acquisition,rehabilitation,or
part 50 and the recipient has received displaced person must be advised of his demolition of the property for the
HUD approval of the property. or her rights under the Fair Housing Act project.
(e)Davis-Bacon Act.The provisions of (42 U.S.C.3601 et seq.). Whenever (ii)Notwithstanding paragraph
the Davis-Bacon Act(40 U.S.C. 276a to possible,minority persons shall be (c)(2)(i)of this section,a person does
276a-5)do not apply to the ESG given reasonable opportunities to not qualify as a displaced person if:
program. relocate to comparable and suitable (A)The person has been evicted for
(f)Procurement of Recovered decent,safe,and sanitary replacement cause based upon a serious or repeated
Materials.The recipient and its dwellings,not located in an area of violation of the terms and conditions of
contractors must comply with Section minority concentration,that are within the lease or occupancy agreement;
6002 of the Solid Waste Disposal Act,as their financial means.This policy, violation of applicable Federal,State or
amended by the Resource Conservation however,does not require providing a local law,or other good cause;and the
and Recovery Act.The requirements of person a larger payment than is recipient determines that the eviction
Section 6002 include procuring only necessary to enable a person to relocate was not undertaken for the purpose of
items designated in guidelines of the to a comparable replacement dwelling. evading the obligation to provide
Environmental Protection Agency(EPA) (See 49 CFR 24.205(c)(2)(ii)(D).)As relocation assistance.
at 40 CFR part 247 that contain the required by Section 504 of the (B)The person moved into the
highest percentage of recovered Rehabilitation Act(29 U.S.C. 794)and property after the submission of the
for which the
sehold interest under state law and
licant meets one or both of
75990 Federal Register/Vol. 76, No. 233/Monday, December 5, 2011/Rules and Regulations
application but,before signing a lease Subpart F—Grant Administration (i)Discharge paperwork or a written
and commencing occupancy,was or oral referral from a social worker,
provided written notice of the project, §576.500 Recordkeeping and reporting case manager,or other appropriate
its possible impact on the person(e.g., requirements. official of the institution,stating the
the person may be displaced),and the (a)In general.The recipient must beginning and end dates of the time
fact that the person would not qualify as have policies and procedures to ensure residing in the institution.All oral
a"displaced person" (or for any the requirements of this part are met. statements must be recorded by the
assistance under this section)as a result The policies and procedures must be intake worker;or
of the project; established in writing and implemented (ii)Where the evidence in paragraph
by the recipient and its subrecipients to (b)(2)(i)of this section is not obtainable,
(C)The person is ineligible under 49 ensure that ESG funds are used in a written record of the intake worker's
CFR 24.2(a)(9)(ii);or accordance with the requirements. In due diligence in attempting to obtain
(D)HUD determines that the person addition,sufficient records must be the evidence described in paragraph
was not displaced as a direct result of established and maintained to enable (b)(2)(i)and a certification by the
acquisition,rehabilitation,or the recipient and HUD to determine individual seeking assistance that states
demolition for the project. whether ESG requirements are being he or she is exiting or has just exited an
(iii)The recipient or subrecipient met. institution where he or she resided for
may,at any time,request that HUD to (b)Homeless status.The recipient 90 days or less.
determine whether a displacement is or must maintain and follow written intake (3)If the individual or family qualifies
would be covered by this rule. procedures to ensure compliance with as homeless under paragraph(2)of the
the homeless definition in§576.2.The homeless definition in§576.2,because
(3)Initiation of negotiations.For procedures must require documentation the individual or family will
purposes of determining the type of at intake of the evidence relied upon to imminently lose their housing,the
replacement housing payment establish and verify homeless status. evidence must include:
assistance to be provided to a displaced The procedures must establish the order (i)(A)A court order resulting from an
person pursuant to this section: of priority for obtaining evidence as eviction action that requires the
(i)If the displacement is the direct third-party documentation first,intake individual or family to leave their
result of privately undertaken worker observations second,and residence within 14 days after the date
rehabilitation,demolition,or certification from the person seeking of their application for homeless
acquisition of the real property, assistance third.However, lack of third- assistance;or the equivalent notice
"initiation of negotiations"means the party documentation must not prevent under applicable state law,a Notice to
execution of the agreement between the an individual or family from being Quit,or a Notice to Terminate issued
recipient and the subrecipient or the immediately admitted to emergency under state law;
agreement between the recipient(or shelter,receiving street outreach (B)For individuals and families
subrecipient,as applicable)and the services,or being immediately admitted whose primary nighttime residence is a
person owning or controlling the to shelter or receiving services provided hotel or motel room not paid for by
property; by a victim service provider.Records charitable organizations or federal,state,
(ii)If site control is only evidenced by contained in an HMIS or comparable or local government programs for Iow-
an option contract to acquire the database used by victim service or legal income individuals,evidence that the
property,the"initiation of negotiations" service providers are acceptable individual or family lacks the resources
does not become effective until the evidence of third-party documentation necessary to reside there for more than
execution of a written agreement that and intake worker observations if the 14 days after the date of application for
creates a legally enforceable HMIS retains an auditable history of all homeless assistance;or
commitment to proceed with the entries,including the person who (C)An oral statement by the
entered the data,the date of entry,and individual or head of household that the
purchase,such as a sales contract.
(d)Real property acquisition the change made;and if the HMIS owner or renter of the housing in which
P P Y q prevents overrides or changes of the they currently reside will not allow
requirements.The acquisition of real dates on which entries are made. them to stay for more than 14 days after
property,whether funded privately or (1)If the individual or family qualifies the date of application for homeless
publicly,for a project assisted with as homeless under paragraph (1)(i)or assistance.The intake worker must
Emergency Solutions Grant(ESG)funds (ii)of the homeless definition in§576.2, record the statement and certify that it
is subject to the URA and Federal acceptable evidence includes a written was found credible.To be found
governmentwide regulations at 49 CFR observation by an outreach worker of credible,the oral statement must either:
part 24,subpart B. the conditions where the individual or (I)be verified by the owner or renter of
(e)Appeals.A person who disagrees family was living,a written referral by the housing in which the individual or
with the recipient's(or subrecipient's,if another housing or service provider,or family resides at the time of application
applicable)determination concerning a certification by the individual or head for homeless assistance and
whether the person qualifies as a of household seeking assistance. documented by a written certification
displaced person,or the amount of (2)If the individual qualifies as by the owner or renter or by the intake
relocation assistance for which the homeless under paragraph(1)(iii)of the worker's recording of the owner or
person may be eligible,may file a homeless definition in§576.2,because renter's oral statement;or(II)if the
written appeal of that determination he or she resided in an emergency intake worker is unable to contact the
with the recipient under 49 CFR 24.10. shelter or place not meant for human owner or renter,be documented by a
A low-income person who disagrees habitation and is exiting an institution written certification by the intake
with the recipient's determination may where he or she resided for 90 days or worker of his or her due diligence in
submit a written request for review of less,acceptable evidence includes the attempting to obtain the owner or
that determination by the appropriate evidence described in paragraph(b)(1) renter's verification and the written
HUD field office. of this section and one of the following: certification by the individual or head of
ion Act(29 U.S.C. 794)and property after the submission of the
for which the
sehold interest under state law and
licant meets one or both of
Federal Register/Vol. 76, No. 233/Monday, December 5, 2011/Rules and Regulations 75991
household seeking assistance that his or move was due to the individual or other organization from whom the
her statement was true and complete; family fleeing domestic violence,dating individual or head of household has
(ii)Certification by the individual or violence,sexual assault,or stalking, sought assistance for domestic violence,
head of household that no subsequent then the intake worker may alternatively dating violence,sexual assault,or
residence has been identified;and obtain a written certification from the stalking.The written referral or
(iii)Certification or other written individual or head of household seeking observation need only include the
documentation that the individual or assistance that they were fleeing that minimum amount of information
family lacks the resources and support situation and that they resided at that necessary to document that the
networks needed to obtain other address;and individual or family is fleeing,or
permanent housing. (iv)For paragraph(3)(iv)of the attempting to flee domestic violence,
(4)If the individual or family qualifies homeless definition in§576.2,written dating violence,sexual assault,and
as homeless under paragraph(3)of the diagnosis from a professional who is stalking.
homeless definition in§576.2,because licensed by the state to diagnose and (c)At risk of homelessness status. For
the individual or family does not treat that condition(or intake staff- each individual or family who receives
otherwise qualify as homeless under the recorded observation of disability that Emergency Solutions Grant(ESG)
homeless definition but is an within 45 days of date of the application homelessness prevention assistance,the
unaccompanied youth under 25 years of for assistance is confirmed by a records must include the evidence
age,or homeless family with one or professional who is licensed by the state relied upon to establish and verify the
more children or youth,and is defined to diagnose and treat that condition); individual or family's"at risk of
as homeless under another Federal employment records;department of homelessness"status.This evidence
statute or section 725(2)of the corrections records;literacy,English must include an intake and certification
McKinney-Vento Homeless Assistance proficiency tests;or other reasonable form that meets HUD specifications and
Act(42 U.S.C. 11434a(2)),the evidence documentation of the conditions is completed by the recipient or
must include: required under paragraph(3)(iv)of the subrecipient.The evidence must also
(i)For paragraph (3)(i)of the homeless homeless definition. include:
definition in§576.2,certification of (5)If the individual or family qualifies (1)If the program participant meets
homeless status by the local private under paragraph(4)of the homeless the criteria under paragraph(1)of the
nonprofit organization or state or local definition in§576.2,because the "at risk of homelessness" definition in
governmental entity responsible for individual or family is fleeing domestic §576.2:
administering assistance under the violence,dating violence,sexual (i)The documentation specified
Runaway and Homeless Youth Act(42 assault,stalking,or other dangerous or under this section for determining
U.S.C.5701 et seq.),the Head Start Act life-threatening conditions related to annual income;
(42 U.S.C. 9831 et seq.),subtitle N of the violence,then acceptable evidence (ii)The program participant's
Violence Against Women Act of 1994 includes an oral statement by the certification on a form specified by HUD
(42 U.S.C. 14043e et seq.),section 330 individual or head of household seeking that the program participant has
of the Public Health Service Act(42 assistance that they are fleeing that insufficient financial resources and
U.S.C.254b),the Food and Nutrition situation,that no subsequent residence support networks;e.g., family,friends,
Act of 2008(7 U.S.C. 2011 et seq.), has been identified and that they lack faith-based or other social networks,
section 17 of the Child Nutrition Act of the resources or support networks,e.g., immediately available to attain housing
1966(42 U.S.C. 1786),or subtitle B of family,friends,faith-based or other stability and meets one or more of the
title VII of the McKinney-Vento social networks,needed to obtain other conditions under paragraph(1)(iii)of
Homeless Assistance Act(42 U.S.C. housing.If the individual or family is the definition of"at risk of
11431 et seq.),as applicable; receiving shelter or services provided by homelessness" in§576.2;
(ii)For paragraph(3)(ii)of the a victim service provider,the oral (iii)The most reliable evidence
homeless definition in§576.2,referral statement must be documented by either available to show that the program
by a housing or service provider,written a certification by the individual or head participant does not have sufficient
observation by an outreach worker,or of household;or a certification by the resources or support networks;e.g.,
certification by the homeless individual intake worker.Otherwise,the oral family,friends,faith-based or other
or head of household seeking assistance; statement that the individual or head of social networks,immediately available
(iii)For paragraph(3)(iii)of the household seeking assistance has not to prevent them from moving to an
homeless definition in§576.2, identified a subsequent residence and emergency shelter or another place
certification by the individual or head of lacks the resources or support networks, described in paragraph (1)of the
household and any available supporting e.g.,family,friends,faith-based or other "homeless"definition. Acceptable
documentation that the individual or social networks,needed to obtain evidence includes:
family moved two or more times during housing must be documented by a (A)Source documents (e.g.,notice of
the 60-day period immediately certification by the individual or head of termination from employment,
preceding the date of application for household that the oral statement is true unemployment compensation
homeless assistance,including: and complete,and,where the safety of statement,bank statement,health-care
recorded statements or records obtained the individual or family would not be bill showing arrears,utility bill showing
from each owner or renter of housing, jeopardized,the domestic violence, arrears);
provider of shelter or housing,or social dating violence,sexual assault,stalking, (B)To the extent that source
worker,case worker,or other or other dangerous or life-threatening documents are unobtainable,a written
appropriate official of a hospital or condition must be verified by a written statement by the relevant third party
institution in which the individual or observation by the intake worker or a (e.g.,former employer,public
family resided;or,where these written referral by a housing or service administrator,relative)or the written
statements or records are unobtainable, provider,social worker,legal assistance certification by the recipient's or
a written record of the intake worker's provider,health-care provider,law subrecipient's intake staff of the oral
due diligence in attempting to obtain enforcement agency,legal assistance verification by the relevant third party
these statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
75992 Federal Register/Vol. 76, No. 233/Monday, December 5, 2011/Rules and Regulations
the criteria under paragraph(1)(ii)of the (d)Determinations of ineligibility.For appropriate assistance and services at
definition of"at risk of homelessness" each individual and family determined §576.401(d)and(e); and
in§576.2;or ineligible to receive Emergency (3)Where applicable,compliance
(C)To the extent that source Solutions Grant(ESG)assistance,the with the termination of assistance
documents and third-party verification record must include documentation of requirement in§576.402.
are unobtainable,a written statement by the reason for that determination. (g)Centralized or coordinated
the recipient's or subrecipient's intake (e)Annual income.For each program assessment systems and procedures.
staff describing the efforts taken to participant who receives homelessness The recipient and its subrecipients must
obtain the required evidence;and prevention assistance,or who receives keep documentation evidencing the use
(iv)The most reliable evidence rapid re-housing assistance longer than of,and written intake procedures for,
available to show that the program one year,the following documentation the centralized or coordinated
participant meets one or more of the of annual income must be maintained: assessment system(s)developed by the
conditions under paragraph(1)(iii)of (1)Income evaluation form containing Continuum of Care(s)in accordance
the definition of"at risk of the minimum requirements specified by with the requirements established by
homelessness"in§576.2.Acceptable HUD and completed by the recipient or HUD.
evidence includes: subrecipient;and (h)Rental assistance agreements and
(A)Source documents that evidence (2)Source documents for the assets payments.The records must include
one or more of the conditions under held by the program participant and copies of all leases and rental assistance
paragraph (1)(iii)of the definition(e.g., income received over the most recent agreements for the provision of rental
eviction notice,notice of termination period for which representative data is assistance,documentation of payments
from employment,bank statement); available before the date of the made to owners for the provision of
(B)To the extent that source evaluation(e.g.,wage statement, rental assistance,and supporting
documents are unobtainable,a written unemployment compensation documentation for these payments,
statement by the relevant third party statement,public benefits statement, including dates of occupancy by
(e.g.,former employer,owner,primary bank statement); program participants.lc
leaseholder,public administrator,hotel (3)To the extent that source (i)documentUtility the monthly Theallowance records must
for
or motel manager)or the written documents are unobtainable,a written utilities(excluding telephone)used to
certification by the recipient's or statement by the relevant third party determine compliance with the rent
subrecipient's intake staff of the oral (e.g.,employer,government benefits restriction.
verification by the relevant third party administrator)or the written (j)Shelter and housing standards.The
that the applicant meets one or more of certification by the recipient's or records must include documentation of
the criteria under paragraph (1)(iii)of subrecipient's intake staff of the oral compliance with the shelter and
the definition of"at risk of verification by the relevant third party housing standards in§576.403,
homelessness"; or of the income the program participant including inspection reports.
(C)To the extent that source received over the most recent period for (k)Emergency shelter facilities.The
documents and third-party verification which representative data is available; recipient must keep records of the
are unobtainable,a written statement by or emergency shelters assisted under the
the recipient's or subrecipient's intake (4)To the extent that source ESG program,including the amount and
staff that the staff person has visited the documents and third party verification type of assistance provided to each
applicant's residence and determined are unobtainable,the written emergency shelter.As applicable,the
that the applicant meets one or more of certification by the program participant recipient's records must also include
the criteria under paragraph(1)(iii)of of the amount of income the program documentation of the value of the
the definition or,if a visit is not participant received for the most recent building before the rehabilitation of an
practicable or relevant to the period representative of the income that existing emergency shelter or after the
determination,a written statement by the program participant is reasonably conversion of a building into an
the recipient's or subrecipient's intake expected to receive over the 3-month emergency shelter and copies of the
staff describing the efforts taken to period following the evaluation. recorded deed or use restrictions.
obtain the required evidence;or (f)Program participant records.In (1)Services and assistance provided.
(2)If the program participant meets addition to evidence of homeless status The recipient must keep records of the
the criteria under paragraph(2)or(3)of or"at risk of homelessness"status,as types of essential services,rental
the"at risk of homelessness"definition applicable,records must be kept for assistance,and housing stabilization
in§576.2,certification of the child or each program participant that and relocation services provided under
youth's homeless status by the agency or document: the recipient's program and the amounts
organization responsible for (1)The services and assistance spent on these services and assistance.
administering assistance under the provided to that program participant, The recipient and its subrecipients that
Runaway and Homeless Youth Act(42 including,as applicable,the security are units of general purpose local
U.S.C.5701 et seq.),the Head Start Act deposit,rental assistance,and utility government must keep records to
(42 U.S.C. 9831 et seq.),subtitle N of the payments made on behalf of the demonstrate compliance with the
Violence Against Women Act of 1994 program participant; maintenance of effort requirement,
(42 U.S.C. 14043e et seq.),section 330 (2)Compliance with the applicable including records of the unit of the
of the Public Health Service Act(42 requirements for providing services and general purpose local government's
U.S.C. 254b),the Food and Nutrition assistance to that program participant annual budgets and sources of funding
Act of 2008(7 U.S.C.2011 et seq.), under the program components and for street outreach and emergency
section 17 of the Child Nutrition Act of eligible activities provisions at§576.101 shelter services.
1966(42 U.S.C. 1786) or subtitle B of through§576.106,the provision on (m)Coordination with Continuum(s) j
title VII of the McKinney-Vento determining eligibility and amount and of Care and other programs.The
Homeless Assistance Act (42 U.S.C. type of assistance at§576.401(a)and recipient and its subrecipients must
11431 et seq.),as applicable. (b),and the provision on using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
Federal Register/Vol. 76, No. 233/Monday, December 5, 2011/Rules and Regulations 75993
requirements of§576.400 for consulting requirements,including flood insurance (ii)The address or location of any
with the Continuum(s)of Care and requirements. domestic violence,dating violence,
coordinating and integrating ESG (4)Certifications and disclosure forms sexual assault,or stalking shelter project
assistance with programs targeted required under the lobbying and assisted under the ESG will not be made
toward homeless people and ' disclosure requirements in 24 CFR part public,except with written
mainstream service and assistance 87. authorization of the person responsible
programs. (t)Relocation.The records must for the operation of the shelter;and I
(n)HMIS.The recipient must keep include documentation of compliance (iii)The address or location of any
records of the participation in HMIS or with the displacement,relocation,and housing of a program participant will
a comparable database by all projects of acquisition requirements in§576.408. not be made public,except as provided
the recipient and its subrecipients. (u)Financial records. (1)The under a preexisting privacy policy of the
(o)Matching.The recipient must keep recipient must retain supporting recipient or subrecipient and consistent
records of the source and use of documentation for all costs charged to with state and local laws regarding
contributions made to satisfy the the ESG grant. privacy and obligations of
matching requirement in§576.201.The (2)The recipient and its subrecipients confidentiality
records must indicate the particular must keep documentation showing that (2)The confidentiality procedures of
fiscal year grant for which each ESG grant funds were spent on the recipient and its subrecipients must
matching contribution is counted.The allowable costs in accordance with the be in writing and must be maintained in
records must show how the value requirements for eligible activities accordance with this section.
placed on third-party,noncash under§576.101-§576.109 and the cost (y)Period of record retention.All
contributions was derived.To the extent principles in OMB Circulars A-87 (2 records pertaining to each fiscal year of
feasible,volunteer services must be CFR part 225)and A-122 (2 CFR part ESG funds must be retained for the
supported by the same methods that the 230) greater of 5 years or the period specified
organization uses to support the (3)The recipient and its subrecipients below.Copies made by microfilming,
hotoco in
allocation of regular personnel costs. must retain records of the receipt and pmay
(p)Conflicts of interest.The recipient use of program income. be substituted or similar methods uted for the original records.
and its subrecipients must keep records (1)Documentation of each program
(4)The recipient must keep as a familyor
to show compliance with the participant's qualification
organizational conflicts-of-interest documentation of compliance with the individual at risk of homelessness or as
expenditure limits in§576.100 requirements in§576.404(a),a copy of a ndividual and
expenditure deadline in§576.203.
the other programs l or l participant records must
the personal conflicts of interest policy (v)Subrecipients and contractors.(1) be retained for 5 years the
or codes of conduct developed and The reci ient must retain copies of all
implemented to comply with the p p expenditure of all funds from the grant
requirements in§576.404(b),and solicitations of and agreements with under which the program participant
records supporting exceptions to the subrecipients,records of all payment was served;
conflicts of interest requests by and dates of payments made (2)Where ESG funds are used for the
personal
prnio to subrecipients,and documentation of renovation of an emergency shelter
ns.
(q)Homeless participation.The all monitoring and sanctions of involves costs charged to the ESG grant
subrecipients,as applicable.If the that exceed 75 percent of the value of
recipient must document its compliance
with the homeless participation recipient is a State,the recipient must the building before renovation,records
keep records of each recapture and must be retained until 10 years after the
requirements under§576.405.ties.T distribution of recaptured funds under
(r)Faith-based activities.The p date that ESG funds are first obligated
recipient and its subrecipients must §576.501. for the renovation;and
document their compliance with the (2)The recipient and its subrecipients (3)Where ESG funds are used to
faith based activities requirements must retain copies of all procurement convert a building into an emergency
under§576.406. contracts and documentation of shelter and the costs charged to the ESG
(s) Other Federal requirements.The compliance with the procurement grant for the conversion exceed 75
recipient and its subrecipients must requirements in 24 CFR 85.36 and 24 percent of the value of the building after
document their compliance with the CFR 84.40-84.48. conversion,records must be retained
Federal requirements in§576.407,as (3)The recipient must ensure that its until 10 years after the date that ESG
applicable,including: subrecipients comply with the funds are first obligated for the
(1)Records demonstrating compliance recordkeeping requirements specified conversion.
with the nondiscrimination and equal by the recipient and HUD notice or (z)Access to records. (1)Federal
opportunity requirements under regulations. government rights.Notwithstanding the
§576.407(a),including data concerning (w) Other records specified by HUD. confidentiality procedures established
race,ethnicity,disability status,sex, The recipient must keep other records under paragraph(w)of this section,
and family characteristics of persons specified by HUD. HUD,the HUD Office of the Inspector
and households who are applicants for, (x) Confidentiality. (1)The recipient General,and the Comptroller General of
or program participants in,any program and its subrecipients must develop and the United States,or any of their
or activity funded in whole or in part implement written procedures to authorized representatives,must have
with ESG funds and the affirmative ensure: the right of access to all books,
outreach requirements in§576.407(b). (i)All records containing personally documents,papers,or other records of
(2)Records demonstrating compliance identifying information(as defined in the recipient and its subrecipients that
with the uniform administrative HUD's standards for participation,data are pertinent to the ESG grant,in order
requirements in 24 CFR part 85 (for collection,and reporting in a local to make audits,examinations,excerpts,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
75994 Federal Register/Vol. 76, No. 233/Monday, December 5, 2011/Rules and Regulations
(2)Public rights.The recipient must eligible activities in accordance with all reallocate those funds to other
provide citizens,public agencies,and ESG program requirements. recipients in accordance with subpart D
other interested parties with reasonable (3)If the recipient fails to demonstrate of this part.
access(consistent with state and local to HUD's satisfaction that the activities (8)HUD may condition a future grant.
laws regarding privacy and obligations were carried out in compliance with (9)HUD may take other remedies that
of confidentiality and the ESG program requirements,HUD will are legally available.
confidentiality requirements in this take one or more of the remedial actions (c)Recipient sanctions.If the
part)to records regarding any uses of or sanctions specified in paragraph(b) recipient determines that a subrecipient
ESG funds the recipient received during of this section. is not complying with an ESG program
the preceding 5 years. (b)Remedial actions and sanctions. requirement or its subgrant agreement,
(aa)Reports.The recipient must Remedial actions and sanctions for a the recipient must take appropriate
collect and report data on its use of ESG failure to meet an ESG program actions,as prescribed for HUD in
funds in the Integrated Disbursement requirement will be designed to prevent paragraphs(a)and(b)of this section. If
and Information System(IDIS)and other a continuation of the deficiency; the recipient is a State and funds
reporting systems,as specified by HUD. mitigate,to the extent possible,its become available as a result of an action
The recipient must also comply with the adverse effects or consequences;and under this section,the recipient must
reporting requirements in 24 CFR parts prevent its recurrence. reallocate those funds to other
85 and 91 and the reporting (1)HUD may instruct the recipient to subrecipients as soon as practicable.If
requirements under the Federal Funding submit and comply with proposals for the recipient is a unit of general purpose
Accountability and Transparency Act of action to correct,mitigate,and prevent local government of territory,it must
2006,(31 U.S.C.6101 note),which are noncompliance with ESG requirements, either reallocate those funds to other
set forth in Appendix A to 2 CFR part including: subrecipients or reprogram the funds for
170. (i)Preparing and following a schedule other activities to be carried out by the
of actions for carrying out activities recipient as soon as practicable.The
§576.501 Enforcement. affected by the noncompliance, recipient must amend its Consolidated
(a)Performance reviews. including schedules,timetables,and Plan in accordance with its citizenship
(1)HUD will review the performance milestones necessary to implement the participation plan if funds become
of each recipient in carrying out its affected activities; available and are reallocated or
responsibilities under this part (ii)Establishing and following a reprogrammed under this section.The
whenever determined necessary by management plan that assigns reallocated or reprogrammed funds
HUD,but at least annually. In responsibilities for carrying out the must be used by the expenditure
conducting performance reviews,HUD remedial actions; deadline in§576.203.
will rely primarily on information (iii)Canceling or revising activities
obtained from the records and reports likely to be affected by the Dated:November 9,2011.
from the recipient and,when noncompliance,before expending ESG Mercedes Marquez,
appropriate,its subrecipients,as well as funds for the activities; Assistant Secretary for Community Planning
information from onsite monitoring, (iv)Reprogramming ESG funds that and Development.
audit reports,and information from IDIS have not yet been expended from IFR Doc.2011-30938 Filed 12-2-11;8:45 am]
and HMIS.Where applicable,HUD may affected activities to other eligible BILLING CODE 4210-67-P
also consider relevant information activities;
pertaining to the recipient's (v)Suspending disbursement of ESG
performance gained from other sources, funds for some or all activities; DEPARTMENT OF HOUSING AND
including citizen comments,complaint (vi)Reducing or terminating the URBAN DEVELOPMENT
determinations,and litigation.Reviews remaining grant of a subrecipient and
to determine compliance with specific reallocating those funds to other 24 CFR Parts 91,582,and 583
requirements of thispart will be subrecipients;and
q (vii)Making matching contributions (Docket No.FR-5333-F-02]
conducted as necessary,with or without before or as draws are made from the
prior notice to the recipient. RIN 2506-AC26
(2)If HUD determines preliminarily recipient's ESG grant.
that the recipient or one of its (2)HUD may change the method of Homeless Emergency Assistance and
subrecipients has not complied with an Payment to a reimbursement basis. Rapid Transition to Housing: Defining
ESG program requirement,HUD will y3)HUD may suspend payments to' Homeless
the extent HUD deems it necessary to
give the recipient notice of this preclude the further expenditure of AGENCY:Office of the Assistant
determination and an opportunity to funds for affected activities. Secretary for Community Planning and
demonstrate,within the time prescribed (4)HUD may remove the recipient . Development,HUD.
by HUD and on the basis of substantial from participation in reallocations of ACTION:Final rule.
facts and data,that the recipient has funds under subpart D of this part.
complied with Emergency Solutions (5)HUD may deny matching credit for SUMMARY:The Homeless Emergency
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
EXHIBIT"C"
SCOPE OF WORK
1. Provide Homeless Management Information Services to Metro Area Continuum of Care for the
Homeless ESG recipients. Those services include:
a)Provision of HMIS training and technical support
b)Production and submittal of AHAR Report
c)Production and submittal of PULSE report(if Omaha is invited to participate)
d)HMIS bed coverage
e) Client recidivism
0 Client length of homeless episode
g)Permanent housing stability
h)Employment income and mainstream resource access
2. Supplement the City ESGP Grant with matching funds, in an amount not less than $14,885.00, to
be used for homeless assistance.
a. Matching funds must be expended for homeless management information services to
ESG recipients during the effective period of this Agreement.
b. The expenditure and use of matching funds is to be documented pursuant to Section 3 of
this Agreement.
c. Allowable sources for matching funds are agency cash, salary paid to staff to carry out
shelter program, and volunteer hours.
3. Allowable activities which are reimbursable under the provisions of this grant agreement are:
Salaries to those staff providing HMIS to ESG recipients.
4. Provide monthly and annual reports of 1) the monthly and annual reports provided ESG.
recipients, and 2) the training and technical support provided ESG recipients, as well as other
information deemed necessary by the City of Omaha, for the purpose of statistical evaluation,
monitoring and coordination of client services
5. Participate in Metro Area Continuum of Care for the Homeless(MACCH)activities, including:
- The MACCH Client Feedback process;
- Providing updated information to maintain the MACCH Directory;
- Participating in the MACCH HMIS (ServicePoint) -- NOTE: this is the means by which
client homelessness is documented;
- Providing information for the shelter and service provider census counts administered by
MACCH;
- Paying on a timely basis annual MACCH dues; and
- Ensuring that relevant staff are utilizing MACCH's Listserve.
- 15 -
urpose
Accountability and Transparency Act of action to correct,mitigate,and prevent local government of territory,it must
2006,(31 U.S.C.6101 note),which are noncompliance with ESG requirements, either reallocate those funds to other
set forth in Appendix A to 2 CFR part including: subrecipients or reprogram the funds for
170. (i)Preparing and following a schedule other activities to be carried out by the
of actions for carrying out activities recipient as soon as practicable.The
§576.501 Enforcement. affected by the noncompliance, recipient must amend its Consolidated
(a)Performance reviews. including schedules,timetables,and Plan in accordance with its citizenship
(1)HUD will review the performance milestones necessary to implement the participation plan if funds become
of each recipient in carrying out its affected activities; available and are reallocated or
responsibilities under this part (ii)Establishing and following a reprogrammed under this section.The
whenever determined necessary by management plan that assigns reallocated or reprogrammed funds
HUD,but at least annually. In responsibilities for carrying out the must be used by the expenditure
conducting performance reviews,HUD remedial actions; deadline in§576.203.
will rely primarily on information (iii)Canceling or revising activities
obtained from the records and reports likely to be affected by the Dated:November 9,2011.
from the recipient and,when noncompliance,before expending ESG Mercedes Marquez,
appropriate,its subrecipients,as well as funds for the activities; Assistant Secretary for Community Planning
information from onsite monitoring, (iv)Reprogramming ESG funds that and Development.
audit reports,and information from IDIS have not yet been expended from IFR Doc.2011-30938 Filed 12-2-11;8:45 am]
and HMIS.Where applicable,HUD may affected activities to other eligible BILLING CODE 4210-67-P
also consider relevant information activities;
pertaining to the recipient's (v)Suspending disbursement of ESG
performance gained from other sources, funds for some or all activities; DEPARTMENT OF HOUSING AND
including citizen comments,complaint (vi)Reducing or terminating the URBAN DEVELOPMENT
determinations,and litigation.Reviews remaining grant of a subrecipient and
to determine compliance with specific reallocating those funds to other 24 CFR Parts 91,582,and 583
requirements of thispart will be subrecipients;and
q (vii)Making matching contributions (Docket No.FR-5333-F-02]
conducted as necessary,with or without before or as draws are made from the
prior notice to the recipient. RIN 2506-AC26
(2)If HUD determines preliminarily recipient's ESG grant.
that the recipient or one of its (2)HUD may change the method of Homeless Emergency Assistance and
subrecipients has not complied with an Payment to a reimbursement basis. Rapid Transition to Housing: Defining
ESG program requirement,HUD will y3)HUD may suspend payments to' Homeless
the extent HUD deems it necessary to
give the recipient notice of this preclude the further expenditure of AGENCY:Office of the Assistant
determination and an opportunity to funds for affected activities. Secretary for Community Planning and
demonstrate,within the time prescribed (4)HUD may remove the recipient . Development,HUD.
by HUD and on the basis of substantial from participation in reallocations of ACTION:Final rule.
facts and data,that the recipient has funds under subpart D of this part.
complied with Emergency Solutions (5)HUD may deny matching credit for SUMMARY:The Homeless Emergency
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
EXHIBIT "D"
ALLOWABLE EXPENDITURES
Iowa Institute for Community Alliances $13,876.00
HMIS Expenses*
*Eligible HMIS expenses include salaries to those staff providing HMIS to ESG recipients
- 16-
all requirements for the Emergency Shelter Grant program for fiscal year 2012. Be it
further resolved that the Board of Directors authorizes David Discher, Executive Director,to take all
actions, including the execution of the Agreement with the City of Omaha to carry out the purpose of
this Resolution.
Approved by the Board on July 4), 2012.
Signed: � C. .r lr�i�a � _)
Board Secretary
Contractors
pl nlsf1704-agreement
- 14-
) -
a
1 ` p \�_
fl700-res
aermaz
By ci1member
Adopted S. 1. 12012 •
C• Clerk
Approved... .
Mayor
treets
•
Circular No. A-133
Revised to show changes published in the
Federal Register June 27, 2003 and June 26, 2007
Audits of States, Local Governments, and Non-Profit Organizations
Accompanying Federal Register Materials:
-- Audits of States, Local Governments, and Non--Profit Organizations June 30. 1997
- - Revision published June 27, 2003
This revision: (1) increased the dollar threshold for the audit requirement; and (2) made
changes regarding determination of cognizant and oversight agencies for audit.
- - Revision published June 26, 2007
This revision: (1) replaced the term "reportable conditions"with "significant deficiencies"
to conform with current auditing standards; and (2) updated report submission
requirements. Definition of"significant deficiencies" and "material weaknesses" are as
defined in generally accepted auditing standards issued by the American Institute of
Certified Public Accountants (AICPA) and Government Auditing Standards issued by the
Government Accountability Office.
[Note: The June 27, 2003 revisions: (1) increased the dollar threshold for the audit requirement, and (2)
made changes regarding determination of cognizant and oversight agencies for audit. The June 26, 2007
revisions make changes to (1) to replace the terms "reportable conditions"with "significant deficiencies" to
conform with changes in auditing standards; and (2) reporting submission requirements.
In several places, the Circular includes guidelines for the reporting of"significant deficiencies" and
"material weaknesses."These terms are to be used as defined in generally accepted auditing standards
issued by the American Institute of Certified Public Accountants (AICPA), and Government Auditing
Standards issued by the Government Accountability Office.]
NOTE: this is the means by which
client homelessness is documented;
- Providing information for the shelter and service provider census counts administered by
MACCH;
- Paying on a timely basis annual MACCH dues; and
- Ensuring that relevant staff are utilizing MACCH's Listserve.
- 15 -
urpose
Accountability and Transparency Act of action to correct,mitigate,and prevent local government of territory,it must
2006,(31 U.S.C.6101 note),which are noncompliance with ESG requirements, either reallocate those funds to other
set forth in Appendix A to 2 CFR part including: subrecipients or reprogram the funds for
170. (i)Preparing and following a schedule other activities to be carried out by the
of actions for carrying out activities recipient as soon as practicable.The
§576.501 Enforcement. affected by the noncompliance, recipient must amend its Consolidated
(a)Performance reviews. including schedules,timetables,and Plan in accordance with its citizenship
(1)HUD will review the performance milestones necessary to implement the participation plan if funds become
of each recipient in carrying out its affected activities; available and are reallocated or
responsibilities under this part (ii)Establishing and following a reprogrammed under this section.The
whenever determined necessary by management plan that assigns reallocated or reprogrammed funds
HUD,but at least annually. In responsibilities for carrying out the must be used by the expenditure
conducting performance reviews,HUD remedial actions; deadline in§576.203.
will rely primarily on information (iii)Canceling or revising activities
obtained from the records and reports likely to be affected by the Dated:November 9,2011.
from the recipient and,when noncompliance,before expending ESG Mercedes Marquez,
appropriate,its subrecipients,as well as funds for the activities; Assistant Secretary for Community Planning
information from onsite monitoring, (iv)Reprogramming ESG funds that and Development.
audit reports,and information from IDIS have not yet been expended from IFR Doc.2011-30938 Filed 12-2-11;8:45 am]
and HMIS.Where applicable,HUD may affected activities to other eligible BILLING CODE 4210-67-P
also consider relevant information activities;
pertaining to the recipient's (v)Suspending disbursement of ESG
performance gained from other sources, funds for some or all activities; DEPARTMENT OF HOUSING AND
including citizen comments,complaint (vi)Reducing or terminating the URBAN DEVELOPMENT
determinations,and litigation.Reviews remaining grant of a subrecipient and
to determine compliance with specific reallocating those funds to other 24 CFR Parts 91,582,and 583
requirements of thispart will be subrecipients;and
q (vii)Making matching contributions (Docket No.FR-5333-F-02]
conducted as necessary,with or without before or as draws are made from the
prior notice to the recipient. RIN 2506-AC26
(2)If HUD determines preliminarily recipient's ESG grant.
that the recipient or one of its (2)HUD may change the method of Homeless Emergency Assistance and
subrecipients has not complied with an Payment to a reimbursement basis. Rapid Transition to Housing: Defining
ESG program requirement,HUD will y3)HUD may suspend payments to' Homeless
the extent HUD deems it necessary to
give the recipient notice of this preclude the further expenditure of AGENCY:Office of the Assistant
determination and an opportunity to funds for affected activities. Secretary for Community Planning and
demonstrate,within the time prescribed (4)HUD may remove the recipient . Development,HUD.
by HUD and on the basis of substantial from participation in reallocations of ACTION:Final rule.
facts and data,that the recipient has funds under subpart D of this part.
complied with Emergency Solutions (5)HUD may deny matching credit for SUMMARY:The Homeless Emergency
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
Circular No. A-133
Revised to show changes published in the Federal Registers
of June 27, 2003 and June 26, 2007
Audits of States, Local Governments, and Non-Profit Organizations
TO THE HEADS OF EXECUTIVE DEPARTMENTS AND ESTABLISHMENTS
SUBJECT: Audits of States, Local Governments, and Non-Profit Organizations
1. Purpose. This Circular is issued pursuant to the Single Audit Act of
1984, P.L. 98-502, and the Single Audit Act Amendments of 1996, P.L. 104-156.
It sets forth standards for obtaining consistency and uniformity among Federal
agencies for the audit of States, local governments, and non-profit
organizations expending Federal awards.
2 . Authority. Circular A-133 is issued under the authority of sections
503, 1111, and 7501 et seq. of title 31, United States Code, and Executive
Orders 8248 and 11541.
3 . Rescission and Supersession. This Circular rescinds Circular A-128,
"Audits of State and Local Governments, " issued April 12, 1985, and supersedes
the prior Circular A-133, "Audits of Institutions of Higher Education and
Other Non-Profit Institutions, " issued April 22, 1996. For effective dates,
see paragraph 10.
4. Policy. Except as provided herein, the standards set forth in this
Circular shall be applied by all Federal agencies. If any statute
specifically prescribes policies or specific requirements that differ from the
standards provided herein, the provisions of the subsequent statute shall
govern.
Federal agencies shall apply the provisions of the sections of this
Circular to non-Federal entities, whether they are recipients expending
Federal awards received directly from Federal awarding agencies, or are
subrecipients expending Federal awards received from a pass-through entity (a
recipient or another subrecipient) .
This Circular does not apply to non-U.S. based entities expending
Federal awards received either directly as a recipient or indirectly as a
subrecipient.
5. Definitions . The definitions of key terms used in this Circular are
contained in § .105 in the Attachment to this Circular.
6 . Required Action. The specific requirements and responsibilities of
Federal agencies and non-Federal entities are set forth in the Attachment to
this Circular. Federal agencies
making awards to non-Federal entities, either directly or indirectly, shall
adopt the language in the Circular in codified regulations as provided in
Section 10 (below) , unless different provisions are required by Federal
statute or are approved by the Office of Management and Budget (OMB) .
7. OMB Responsibilities. OMB will review Federal agency regulations and
implementation of this Circular, and will provide interpretations of policy
requirements and assistance to ensure uniform, effective and efficient
implementation.
8 . Information Contact . Further information concerning Circular A-133 may
be obtained by contacting the Financial Standards and Reporting Branch, Office
of Federal Financial Management, Office of Management and Budget, Washington,
DC 20503, telephone (202) 395-3.993.
1
he must be used by the expenditure
conducting performance reviews,HUD remedial actions; deadline in§576.203.
will rely primarily on information (iii)Canceling or revising activities
obtained from the records and reports likely to be affected by the Dated:November 9,2011.
from the recipient and,when noncompliance,before expending ESG Mercedes Marquez,
appropriate,its subrecipients,as well as funds for the activities; Assistant Secretary for Community Planning
information from onsite monitoring, (iv)Reprogramming ESG funds that and Development.
audit reports,and information from IDIS have not yet been expended from IFR Doc.2011-30938 Filed 12-2-11;8:45 am]
and HMIS.Where applicable,HUD may affected activities to other eligible BILLING CODE 4210-67-P
also consider relevant information activities;
pertaining to the recipient's (v)Suspending disbursement of ESG
performance gained from other sources, funds for some or all activities; DEPARTMENT OF HOUSING AND
including citizen comments,complaint (vi)Reducing or terminating the URBAN DEVELOPMENT
determinations,and litigation.Reviews remaining grant of a subrecipient and
to determine compliance with specific reallocating those funds to other 24 CFR Parts 91,582,and 583
requirements of thispart will be subrecipients;and
q (vii)Making matching contributions (Docket No.FR-5333-F-02]
conducted as necessary,with or without before or as draws are made from the
prior notice to the recipient. RIN 2506-AC26
(2)If HUD determines preliminarily recipient's ESG grant.
that the recipient or one of its (2)HUD may change the method of Homeless Emergency Assistance and
subrecipients has not complied with an Payment to a reimbursement basis. Rapid Transition to Housing: Defining
ESG program requirement,HUD will y3)HUD may suspend payments to' Homeless
the extent HUD deems it necessary to
give the recipient notice of this preclude the further expenditure of AGENCY:Office of the Assistant
determination and an opportunity to funds for affected activities. Secretary for Community Planning and
demonstrate,within the time prescribed (4)HUD may remove the recipient . Development,HUD.
by HUD and on the basis of substantial from participation in reallocations of ACTION:Final rule.
facts and data,that the recipient has funds under subpart D of this part.
complied with Emergency Solutions (5)HUD may deny matching credit for SUMMARY:The Homeless Emergency
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
9. Review Date . This Circular will have a policy review three years from
the date of issuance.
10. Effective Dates . The standards set forth in § .400 of the Attachment
to this Circular; which apply directly to Federal agencies, shall be effective
July 1, 1996, and shall apply to audits of fiscal years beginning after June
30, 1996, except as otherwise specified in § .400(a) .
The standards set forth in this Circular that Federal agencies shall
apply to non-Federal entities shall be adopted by Federal agencies in codified
regulations not later than 60 days after publication of this final revision
in the Federal Register, so that they will apply to audits of fiscal years
beginning after June 30, 1996, with the exception that § .305 (b) of the
Attachment applies to audits of fiscal years beginning after June 30, 1998.
The requirements of Circular A-128, although the Circular is rescinded, and
the 1990 version of Circular A-133 remain in effect for audits of fiscal years
beginning on or before June 30, 1996.
The revisions published in the Federal Register June 27, 2003, are
effective for fiscal years ending after December 31, 2003, and early
implementation is not permitted with the exception of the definition of
oversight agency for audit which is effective July 28, 2003.
Augustine T. Smythe
Acting Director
The revisions published in the Federal Register June 26, 2007, are
effective for fiscal years ending on or after December 15,• 2006.
Rob Portman
Director
Attachment
2
wards received directly from Federal awarding agencies, or are
subrecipients expending Federal awards received from a pass-through entity (a
recipient or another subrecipient) .
This Circular does not apply to non-U.S. based entities expending
Federal awards received either directly as a recipient or indirectly as a
subrecipient.
5. Definitions . The definitions of key terms used in this Circular are
contained in § .105 in the Attachment to this Circular.
6 . Required Action. The specific requirements and responsibilities of
Federal agencies and non-Federal entities are set forth in the Attachment to
this Circular. Federal agencies
making awards to non-Federal entities, either directly or indirectly, shall
adopt the language in the Circular in codified regulations as provided in
Section 10 (below) , unless different provisions are required by Federal
statute or are approved by the Office of Management and Budget (OMB) .
7. OMB Responsibilities. OMB will review Federal agency regulations and
implementation of this Circular, and will provide interpretations of policy
requirements and assistance to ensure uniform, effective and efficient
implementation.
8 . Information Contact . Further information concerning Circular A-133 may
be obtained by contacting the Financial Standards and Reporting Branch, Office
of Federal Financial Management, Office of Management and Budget, Washington,
DC 20503, telephone (202) 395-3.993.
1
he must be used by the expenditure
conducting performance reviews,HUD remedial actions; deadline in§576.203.
will rely primarily on information (iii)Canceling or revising activities
obtained from the records and reports likely to be affected by the Dated:November 9,2011.
from the recipient and,when noncompliance,before expending ESG Mercedes Marquez,
appropriate,its subrecipients,as well as funds for the activities; Assistant Secretary for Community Planning
information from onsite monitoring, (iv)Reprogramming ESG funds that and Development.
audit reports,and information from IDIS have not yet been expended from IFR Doc.2011-30938 Filed 12-2-11;8:45 am]
and HMIS.Where applicable,HUD may affected activities to other eligible BILLING CODE 4210-67-P
also consider relevant information activities;
pertaining to the recipient's (v)Suspending disbursement of ESG
performance gained from other sources, funds for some or all activities; DEPARTMENT OF HOUSING AND
including citizen comments,complaint (vi)Reducing or terminating the URBAN DEVELOPMENT
determinations,and litigation.Reviews remaining grant of a subrecipient and
to determine compliance with specific reallocating those funds to other 24 CFR Parts 91,582,and 583
requirements of thispart will be subrecipients;and
q (vii)Making matching contributions (Docket No.FR-5333-F-02]
conducted as necessary,with or without before or as draws are made from the
prior notice to the recipient. RIN 2506-AC26
(2)If HUD determines preliminarily recipient's ESG grant.
that the recipient or one of its (2)HUD may change the method of Homeless Emergency Assistance and
subrecipients has not complied with an Payment to a reimbursement basis. Rapid Transition to Housing: Defining
ESG program requirement,HUD will y3)HUD may suspend payments to' Homeless
the extent HUD deems it necessary to
give the recipient notice of this preclude the further expenditure of AGENCY:Office of the Assistant
determination and an opportunity to funds for affected activities. Secretary for Community Planning and
demonstrate,within the time prescribed (4)HUD may remove the recipient . Development,HUD.
by HUD and on the basis of substantial from participation in reallocations of ACTION:Final rule.
facts and data,that the recipient has funds under subpart D of this part.
complied with Emergency Solutions (5)HUD may deny matching credit for SUMMARY:The Homeless Emergency
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
I
PART_ --AUDITS OF STATES, LOCAL GOVERNMENTS, AND NON-PROFIT
ORGANIZATIONS
Subpart A--General
Sec.
. 100 Purpose.
. 105 Definitions.
Subpart B--Audits
.200 Audit requirements.
.205 Basis for determining Federal awards expended.
. 210 Subrecipient and vendor determinations.
. 215 Relation to other audit requirements.
. 220 Frequency of audits.
. 225 Sanctions.
. 230 Audit costs.
. 235 Program-specific audits.
Subpart C--Auditees
_.300 Auditee responsibilities.
. 305 Auditor selection.
.310 Financial statements.
. 315 Audit findings follow-up.
. 320 Report submission.
Subpart D--Federal Agencies and Pass-Through Entities
_.400 Responsibilities.
.405 Management decision.
Subpart E--Auditors
. 500 Scope of audit.
_. 505 Audit reporting.
_. 510 Audit findings.
.515 Audit working papers.
_. 520 Major program determination.
. 525 Criteria for Federal program risk.
.530 Criteria for a low-risk auditee.
Appendix A to Part _ - Data Collection Form (Form SF-SAC) .
Appendix B to Part _ - Circular A-133 Compliance Supplement.
3
r December 31, 2003, and early
implementation is not permitted with the exception of the definition of
oversight agency for audit which is effective July 28, 2003.
Augustine T. Smythe
Acting Director
The revisions published in the Federal Register June 26, 2007, are
effective for fiscal years ending on or after December 15,• 2006.
Rob Portman
Director
Attachment
2
wards received directly from Federal awarding agencies, or are
subrecipients expending Federal awards received from a pass-through entity (a
recipient or another subrecipient) .
This Circular does not apply to non-U.S. based entities expending
Federal awards received either directly as a recipient or indirectly as a
subrecipient.
5. Definitions . The definitions of key terms used in this Circular are
contained in § .105 in the Attachment to this Circular.
6 . Required Action. The specific requirements and responsibilities of
Federal agencies and non-Federal entities are set forth in the Attachment to
this Circular. Federal agencies
making awards to non-Federal entities, either directly or indirectly, shall
adopt the language in the Circular in codified regulations as provided in
Section 10 (below) , unless different provisions are required by Federal
statute or are approved by the Office of Management and Budget (OMB) .
7. OMB Responsibilities. OMB will review Federal agency regulations and
implementation of this Circular, and will provide interpretations of policy
requirements and assistance to ensure uniform, effective and efficient
implementation.
8 . Information Contact . Further information concerning Circular A-133 may
be obtained by contacting the Financial Standards and Reporting Branch, Office
of Federal Financial Management, Office of Management and Budget, Washington,
DC 20503, telephone (202) 395-3.993.
1
he must be used by the expenditure
conducting performance reviews,HUD remedial actions; deadline in§576.203.
will rely primarily on information (iii)Canceling or revising activities
obtained from the records and reports likely to be affected by the Dated:November 9,2011.
from the recipient and,when noncompliance,before expending ESG Mercedes Marquez,
appropriate,its subrecipients,as well as funds for the activities; Assistant Secretary for Community Planning
information from onsite monitoring, (iv)Reprogramming ESG funds that and Development.
audit reports,and information from IDIS have not yet been expended from IFR Doc.2011-30938 Filed 12-2-11;8:45 am]
and HMIS.Where applicable,HUD may affected activities to other eligible BILLING CODE 4210-67-P
also consider relevant information activities;
pertaining to the recipient's (v)Suspending disbursement of ESG
performance gained from other sources, funds for some or all activities; DEPARTMENT OF HOUSING AND
including citizen comments,complaint (vi)Reducing or terminating the URBAN DEVELOPMENT
determinations,and litigation.Reviews remaining grant of a subrecipient and
to determine compliance with specific reallocating those funds to other 24 CFR Parts 91,582,and 583
requirements of thispart will be subrecipients;and
q (vii)Making matching contributions (Docket No.FR-5333-F-02]
conducted as necessary,with or without before or as draws are made from the
prior notice to the recipient. RIN 2506-AC26
(2)If HUD determines preliminarily recipient's ESG grant.
that the recipient or one of its (2)HUD may change the method of Homeless Emergency Assistance and
subrecipients has not complied with an Payment to a reimbursement basis. Rapid Transition to Housing: Defining
ESG program requirement,HUD will y3)HUD may suspend payments to' Homeless
the extent HUD deems it necessary to
give the recipient notice of this preclude the further expenditure of AGENCY:Office of the Assistant
determination and an opportunity to funds for affected activities. Secretary for Community Planning and
demonstrate,within the time prescribed (4)HUD may remove the recipient . Development,HUD.
by HUD and on the basis of substantial from participation in reallocations of ACTION:Final rule.
facts and data,that the recipient has funds under subpart D of this part.
complied with Emergency Solutions (5)HUD may deny matching credit for SUMMARY:The Homeless Emergency
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
Subpart A--General
§ .100 Purpose.
This part sets forth standards for obtaining consistency and uniformity
among Federal agencies for the audit of non-Federal entities expending Federal
awards.
§ .105 Definitions.
Auditee means any non-Federal entity that expends Federal awards which
must be audited under this part.
Auditor means an auditor, that is a public accountant or a Federal,
State or local government audit organization, which meets the general
standards specified in generally accepted government auditing standards
(GAGAS) . The term auditor does not include internal auditors of non-profit
organizations.
Audit finding means deficiencies which the auditor is required by
§ .510(a) to report in the schedule of findings and questioned costs.
CFDA number means the number assigned to a Federal program in the
Catalog of Federal Domestic Assistance (CFDA) .
Cluster of programs means a grouping of closely related programs that
share common compliance requirements. The types of clusters of programs are
research and development (R&D) , student financial aid (SFA) , and other
clusters. "Other clusters" are as defined by the Office of Management and
Budget (OMB) in the compliance supplement or as designated by a State for
Federal awards the State provides to its subrecipients that meet the
definition of a cluster of programs. When designating an "other cluster, " a
State shall identify the Federal awards included in the cluster and advise the
subrecipients of compliance requirements applicable to the cluster, consistent
with § .400(d) (1) and §_.400(d) (2) , respectively. A cluster of programs
shall be considered as one program for determining major programs, as
described in § .520, and, with the exception of R&D as described in
§ .200(c) , whether a program-specific audit may be elected.
Cognizant agency for audit means the Federal agency designated to carry
out the responsibilities described in §_.400(a) .
Compliance supplement refers to the Circular A-133 Compliance
Supplement, included as Appendix B to Circular A-133, or such documents as
OMB or its designee may issue to replace it. This document is available from
the Government Printing Office, Superintendent of Documents, Washington, DC
20402-9325.
Corrective action means action taken by the auditee that:
(1) Corrects identified deficiencies; •
(2) Produces recommended improvements; or
(3) Demonstrates that audit findings are either invalid or do not
warrant auditee action.
Federal agency has the same meaning as the term agency in Section 551 (1)
of title 5, United States Code.
Federal award means Federal financial assistance and Federal cost-
reimbursement contracts that non-Federal entities receive directly from
Federal awarding agencies or indirectly from pass-through entities. It does
4
be obtained by contacting the Financial Standards and Reporting Branch, Office
of Federal Financial Management, Office of Management and Budget, Washington,
DC 20503, telephone (202) 395-3.993.
1
he must be used by the expenditure
conducting performance reviews,HUD remedial actions; deadline in§576.203.
will rely primarily on information (iii)Canceling or revising activities
obtained from the records and reports likely to be affected by the Dated:November 9,2011.
from the recipient and,when noncompliance,before expending ESG Mercedes Marquez,
appropriate,its subrecipients,as well as funds for the activities; Assistant Secretary for Community Planning
information from onsite monitoring, (iv)Reprogramming ESG funds that and Development.
audit reports,and information from IDIS have not yet been expended from IFR Doc.2011-30938 Filed 12-2-11;8:45 am]
and HMIS.Where applicable,HUD may affected activities to other eligible BILLING CODE 4210-67-P
also consider relevant information activities;
pertaining to the recipient's (v)Suspending disbursement of ESG
performance gained from other sources, funds for some or all activities; DEPARTMENT OF HOUSING AND
including citizen comments,complaint (vi)Reducing or terminating the URBAN DEVELOPMENT
determinations,and litigation.Reviews remaining grant of a subrecipient and
to determine compliance with specific reallocating those funds to other 24 CFR Parts 91,582,and 583
requirements of thispart will be subrecipients;and
q (vii)Making matching contributions (Docket No.FR-5333-F-02]
conducted as necessary,with or without before or as draws are made from the
prior notice to the recipient. RIN 2506-AC26
(2)If HUD determines preliminarily recipient's ESG grant.
that the recipient or one of its (2)HUD may change the method of Homeless Emergency Assistance and
subrecipients has not complied with an Payment to a reimbursement basis. Rapid Transition to Housing: Defining
ESG program requirement,HUD will y3)HUD may suspend payments to' Homeless
the extent HUD deems it necessary to
give the recipient notice of this preclude the further expenditure of AGENCY:Office of the Assistant
determination and an opportunity to funds for affected activities. Secretary for Community Planning and
demonstrate,within the time prescribed (4)HUD may remove the recipient . Development,HUD.
by HUD and on the basis of substantial from participation in reallocations of ACTION:Final rule.
facts and data,that the recipient has funds under subpart D of this part.
complied with Emergency Solutions (5)HUD may deny matching credit for SUMMARY:The Homeless Emergency
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
not include procurement contracts, under grants or contracts, used to buy
goods or services from vendors. Any audits of such vendors shall be covered
by the terms and conditions of the contract. Contracts to operate Federal
Government owned, contractor operated facilities (GOCOs) are excluded from the
requirements of this part.
Federal awarding agency means the Federal agency that provides an award
directly to the recipient.
Federal financial assistance means assistance that non-Federal entities
receive or administer in the form of grants, loans, loan guarantees, property
(including donated surplus property) , cooperative agreements, interest
subsidies, insurance, food commodities, direct appropriations, and other
assistance, but does not include amounts received as reimbursement for
services rendered to individuals as described in § .205(h) and § .205(i) .
Federal program means:
(1) All Federal awards to a non-Federal entity assigned a single
number in the CFDA.
(2) When no CFDA number is assigned, all Federal awards from the same
agency made for the same purpose should be combined and considered one
program.
(3) Notwithstanding paragraphs (1) and (2) of this definition, a
cluster of programs. The types of clusters of programs are:
(i) Research and development (R&D) ;
(ii) Student financial aid (SFA) ; and
(iii) "Other clusters, " as described in the definition of cluster
of programs in this section.
GAGAS means generally accepted government auditing standards issued by
the Comptroller General of the United States, which are applicable to
financial audits.
Generally accepted accounting principles has the meaning specified in
generally accepted auditing standards issued by the American Institute of
Certified Public Accountants (AICPA) .
Indian tribe means any Indian tribe, band, nation, or other organized
group or community, including any Alaskan Native village or regional or
village corporation (as defined in, or established under, the Alaskan Native
Claims Settlement Act) that is recognized by the United States as eligible for
the special programs and services provided by the United States to Indians
because of their status as Indians.
Internal control means a process, effected by an entity's management and
other personnel, designed to provide reasonable assurance regarding the
achievement of objectives in the following categories:
(1) Effectiveness and efficiency of operations.;
(2) Reliability of financial reporting; and
(3) Compliance with applicable laws and regulations.
Internal control pertaining to the compliance requirements for Federal
programs (Internal control over Federal programs) means a process--effected by
5
ssistance and Federal cost-
reimbursement contracts that non-Federal entities receive directly from
Federal awarding agencies or indirectly from pass-through entities. It does
4
be obtained by contacting the Financial Standards and Reporting Branch, Office
of Federal Financial Management, Office of Management and Budget, Washington,
DC 20503, telephone (202) 395-3.993.
1
he must be used by the expenditure
conducting performance reviews,HUD remedial actions; deadline in§576.203.
will rely primarily on information (iii)Canceling or revising activities
obtained from the records and reports likely to be affected by the Dated:November 9,2011.
from the recipient and,when noncompliance,before expending ESG Mercedes Marquez,
appropriate,its subrecipients,as well as funds for the activities; Assistant Secretary for Community Planning
information from onsite monitoring, (iv)Reprogramming ESG funds that and Development.
audit reports,and information from IDIS have not yet been expended from IFR Doc.2011-30938 Filed 12-2-11;8:45 am]
and HMIS.Where applicable,HUD may affected activities to other eligible BILLING CODE 4210-67-P
also consider relevant information activities;
pertaining to the recipient's (v)Suspending disbursement of ESG
performance gained from other sources, funds for some or all activities; DEPARTMENT OF HOUSING AND
including citizen comments,complaint (vi)Reducing or terminating the URBAN DEVELOPMENT
determinations,and litigation.Reviews remaining grant of a subrecipient and
to determine compliance with specific reallocating those funds to other 24 CFR Parts 91,582,and 583
requirements of thispart will be subrecipients;and
q (vii)Making matching contributions (Docket No.FR-5333-F-02]
conducted as necessary,with or without before or as draws are made from the
prior notice to the recipient. RIN 2506-AC26
(2)If HUD determines preliminarily recipient's ESG grant.
that the recipient or one of its (2)HUD may change the method of Homeless Emergency Assistance and
subrecipients has not complied with an Payment to a reimbursement basis. Rapid Transition to Housing: Defining
ESG program requirement,HUD will y3)HUD may suspend payments to' Homeless
the extent HUD deems it necessary to
give the recipient notice of this preclude the further expenditure of AGENCY:Office of the Assistant
determination and an opportunity to funds for affected activities. Secretary for Community Planning and
demonstrate,within the time prescribed (4)HUD may remove the recipient . Development,HUD.
by HUD and on the basis of substantial from participation in reallocations of ACTION:Final rule.
facts and data,that the recipient has funds under subpart D of this part.
complied with Emergency Solutions (5)HUD may deny matching credit for SUMMARY:The Homeless Emergency
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
an entity's management and other personnel--designed to provide reasonable
assurance regarding the achievement of the following objectives for Federal
• programs:
(1) Transactions are properly recorded and accounted for to:
(i) Permit the preparation of reliable financial statements and
Federal reports;
(ii) Maintain accountability over assets; and
(iii) Demonstrate compliance with laws, regulations, and other
compliance requirements;
(2) Transactions are executed in compliance with:
(i) Laws, regulations, and the provisions of contracts or grant
agreements that could have a direct and material effect on a Federal program;
and
(ii) Any other laws and regulations that are identified in the
compliance supplement; and
(3) Funds, property, and other assets are safeguarded against loss
from unauthorized use or disposition.
Loan means a Federal loan or loan guarantee received or administered by
a non-Federal entity.
Local government means any unit of local government within a State,
including a county, borough, municipality, city, town, township, parish, local
public authority, special district, school district, intrastate district,
council of governments, and any other instrumentality of local government. •
Major program means a Federal program determined by the auditor to be a
major program in accordance with § .520 or a program identified as a major
program by a Federal agency or pass-through entity in accordance with
§ .215(c) .
Management decision means the evaluation by the Federal awarding agency
or pass-through entity of the audit findings and corrective action plan and
the issuance of a written decision as to what corrective action is necessary.
Non-Federal entity means a State, local government, or non-profit
organization.
Non-profit organization means:
(1) any corporation, trust, association, cooperative, or other
organization that:
(i) Is operated primarily for scientific, educational, service,
charitable, or similar purposes in the public interest;
(ii) Is not organized primarily for profit; and
(iii) Uses its net proceeds to maintain, improve, or expand its
operations; and
(2) The term non-profit organization includes non-profit institutions
of higher education and hospitals.
6
ories:
(1) Effectiveness and efficiency of operations.;
(2) Reliability of financial reporting; and
(3) Compliance with applicable laws and regulations.
Internal control pertaining to the compliance requirements for Federal
programs (Internal control over Federal programs) means a process--effected by
5
ssistance and Federal cost-
reimbursement contracts that non-Federal entities receive directly from
Federal awarding agencies or indirectly from pass-through entities. It does
4
be obtained by contacting the Financial Standards and Reporting Branch, Office
of Federal Financial Management, Office of Management and Budget, Washington,
DC 20503, telephone (202) 395-3.993.
1
he must be used by the expenditure
conducting performance reviews,HUD remedial actions; deadline in§576.203.
will rely primarily on information (iii)Canceling or revising activities
obtained from the records and reports likely to be affected by the Dated:November 9,2011.
from the recipient and,when noncompliance,before expending ESG Mercedes Marquez,
appropriate,its subrecipients,as well as funds for the activities; Assistant Secretary for Community Planning
information from onsite monitoring, (iv)Reprogramming ESG funds that and Development.
audit reports,and information from IDIS have not yet been expended from IFR Doc.2011-30938 Filed 12-2-11;8:45 am]
and HMIS.Where applicable,HUD may affected activities to other eligible BILLING CODE 4210-67-P
also consider relevant information activities;
pertaining to the recipient's (v)Suspending disbursement of ESG
performance gained from other sources, funds for some or all activities; DEPARTMENT OF HOUSING AND
including citizen comments,complaint (vi)Reducing or terminating the URBAN DEVELOPMENT
determinations,and litigation.Reviews remaining grant of a subrecipient and
to determine compliance with specific reallocating those funds to other 24 CFR Parts 91,582,and 583
requirements of thispart will be subrecipients;and
q (vii)Making matching contributions (Docket No.FR-5333-F-02]
conducted as necessary,with or without before or as draws are made from the
prior notice to the recipient. RIN 2506-AC26
(2)If HUD determines preliminarily recipient's ESG grant.
that the recipient or one of its (2)HUD may change the method of Homeless Emergency Assistance and
subrecipients has not complied with an Payment to a reimbursement basis. Rapid Transition to Housing: Defining
ESG program requirement,HUD will y3)HUD may suspend payments to' Homeless
the extent HUD deems it necessary to
give the recipient notice of this preclude the further expenditure of AGENCY:Office of the Assistant
determination and an opportunity to funds for affected activities. Secretary for Community Planning and
demonstrate,within the time prescribed (4)HUD may remove the recipient . Development,HUD.
by HUD and on the basis of substantial from participation in reallocations of ACTION:Final rule.
facts and data,that the recipient has funds under subpart D of this part.
complied with Emergency Solutions (5)HUD may deny matching credit for SUMMARY:The Homeless Emergency
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
OMB means the Executive Office of the President, Office of Management
and Budget.
Oversight agency for audit means the Federal awarding agency that
provides the predominant amount of direct funding to a recipient not assigned
a cognizant agency for audit. When there is no direct funding, the Federal
agency with the predominant indirect funding shall assume the oversight
responsibilities. The duties of the oversight agency for audit are described
in § .400 (b) .
Effective July 28, 2003, the following is added to this definition:
A Federal agency with oversight for an auditee may reassign oversight to
another Federal agency which provides substantial funding and agrees to
be the oversight agency for audit. Within 30 days after any
reassignment, both the old and the new oversight agency for audit shall
notify the auditee, and, if known, the auditor of the reassignment. "
Pass-through entity means a non-Federal entity that provides a Federal
award to a subrecipient to carry out a Federal program.
Program-specific audit means an audit of one Federal program as provided
for in § .200(c) and § .235.
Questioned cost means a cost that is questioned by the auditor because
of an audit finding:
(1) Which resulted from a violation or possible violation of a
provision of a law, regulation, contract, grant, cooperative agreement, or
other agreement or document governing the use of Federal funds, including
funds used to match Federal funds;
(2) Where the costs, at the time of the audit, are not supported by
adequate documentation; or
(3) Where the costs incurred appear unreasonable and do not reflect
the actions a prudent person would take in the circumstances.
Recipient means a non-Federal entity that expends Federal awards
received directly from a Federal awarding agency to carry out a Federal
program.
Research and development (R&D) means all research activities, both basic
and applied, and all development activities that are performed by a non-
Federal entity. Research is defined as a systematic study directed toward
fuller scientific knowledge or understanding of the subject studied. The term
research also includes activities involving the training of individuals in
research techniques where such activities utilize the same facilities as other
research and development activities and where such activities are not included
in the instruction function. Development is the systematic use of knowledge
and understanding gained from research directed toward the production of
useful materials, devices, systems, or methods, including design and
development of prototypes and processes.
Single audit means an audit which includes both the entity' s financial
statements and the Federal awards as described in § .500.
State means any State of the United States, the District of Columbia,
the Commonwealth of Puerto Rico, the Virgin Islands, Guam, American Samoa, the
Commonwealth of the Northern Mariana Islands, and the Trust Territory of the
7
ing Branch, Office
of Federal Financial Management, Office of Management and Budget, Washington,
DC 20503, telephone (202) 395-3.993.
1
he must be used by the expenditure
conducting performance reviews,HUD remedial actions; deadline in§576.203.
will rely primarily on information (iii)Canceling or revising activities
obtained from the records and reports likely to be affected by the Dated:November 9,2011.
from the recipient and,when noncompliance,before expending ESG Mercedes Marquez,
appropriate,its subrecipients,as well as funds for the activities; Assistant Secretary for Community Planning
information from onsite monitoring, (iv)Reprogramming ESG funds that and Development.
audit reports,and information from IDIS have not yet been expended from IFR Doc.2011-30938 Filed 12-2-11;8:45 am]
and HMIS.Where applicable,HUD may affected activities to other eligible BILLING CODE 4210-67-P
also consider relevant information activities;
pertaining to the recipient's (v)Suspending disbursement of ESG
performance gained from other sources, funds for some or all activities; DEPARTMENT OF HOUSING AND
including citizen comments,complaint (vi)Reducing or terminating the URBAN DEVELOPMENT
determinations,and litigation.Reviews remaining grant of a subrecipient and
to determine compliance with specific reallocating those funds to other 24 CFR Parts 91,582,and 583
requirements of thispart will be subrecipients;and
q (vii)Making matching contributions (Docket No.FR-5333-F-02]
conducted as necessary,with or without before or as draws are made from the
prior notice to the recipient. RIN 2506-AC26
(2)If HUD determines preliminarily recipient's ESG grant.
that the recipient or one of its (2)HUD may change the method of Homeless Emergency Assistance and
subrecipients has not complied with an Payment to a reimbursement basis. Rapid Transition to Housing: Defining
ESG program requirement,HUD will y3)HUD may suspend payments to' Homeless
the extent HUD deems it necessary to
give the recipient notice of this preclude the further expenditure of AGENCY:Office of the Assistant
determination and an opportunity to funds for affected activities. Secretary for Community Planning and
demonstrate,within the time prescribed (4)HUD may remove the recipient . Development,HUD.
by HUD and on the basis of substantial from participation in reallocations of ACTION:Final rule.
facts and data,that the recipient has funds under subpart D of this part.
complied with Emergency Solutions (5)HUD may deny matching credit for SUMMARY:The Homeless Emergency
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
Pacific Islands, any instrumentality thereof, any multi-State, regional, or
interstate entity which has governmental functions, and any Indian tribe as
defined in this section.
Student Financial Aid (SFA) includes those programs of general student
assistance, such as those authorized by Title IV of the Higher Education Act
of 1965, as amended, (20 U.S.C. 1070 et seq. ) which is administered by the
U.S. Department of Education, and similar programs provided by other Federal
agencies. It does not include programs which provide fellowships or similar
Federal awards to students on a competitive basis, or for specified studies or
research.
Subrecipient means a non-Federal entity that expends Federal awards
received from a pass-through entity to carry out a Federal program, but does
not include an individual that is a beneficiary of such a program. A
subrecipient may also be a recipient of other Federal awards directly from a
Federal awarding agency. Guidance on distinguishing between a subrecipient
and a vendor is provided in § .210.
Types of compliance requirements refers to the types of compliance
requirements listed in the compliance supplement. Examples include:
activities allowed or unallowed; allowable costs/cost principles; cash
management; eligibility; matching, level of effort, earmarking; and,
reporting.
Vendor means a dealer, distributor, merchant, or other seller providing
goods or services that are required for the conduct of a Federal program.
These goods or services may be for an organization's own use or for the use of
beneficiaries of the Federal program. Additional guidance on distinguishing
between a subrecipient and a vendor is provided in § .210.
Subpart B--Audits
§ .200 Audit requirements.
(a) Audit required. Non-Federal entities that expend $300, 000
($500, 000 for fiscal years ending after December 31, 2003) or more in a year
in Federal awards shall have a single or program-specific audit conducted for
that year in accordance with the provisions of this part. Guidance on
determining Federal awards expended is provided in §_.205.
(b) Single audit. Non-Federal entities that expend $300,000 ($500, 000
for fiscal years ending after December 31, 2003) or more in a year in Federal
awards shall have a single audit conducted in accordance with § .500 except
when they elect to have a program-specific audit conducted in accordance with
paragraph (c) of this section.
(c) Program-specific audit election. When an auditee expends Federal
awards under only one Federal program (excluding R&D) and the Federal
program's laws, regulations, or grant agreements do not require a financial
statement audit of the auditee, the auditee may elect to have a program-
specific audit conducted in accordance with § .235. A program-specific
audit may not be elected for R&D unless all of the Federal awards expended
were received from the same Federal agency, or the same Federal agency and the
same pass-through entity, and that Federal agency, or pass-through entity in
the case of a subrecipient, approves in advance a program-specific audit.
(d) Exemption when Federal awards expended are less than $300,000
($500, 000 for fiscal years ending after December 31, 2003) . Non-Federal
8
in§576.203.
will rely primarily on information (iii)Canceling or revising activities
obtained from the records and reports likely to be affected by the Dated:November 9,2011.
from the recipient and,when noncompliance,before expending ESG Mercedes Marquez,
appropriate,its subrecipients,as well as funds for the activities; Assistant Secretary for Community Planning
information from onsite monitoring, (iv)Reprogramming ESG funds that and Development.
audit reports,and information from IDIS have not yet been expended from IFR Doc.2011-30938 Filed 12-2-11;8:45 am]
and HMIS.Where applicable,HUD may affected activities to other eligible BILLING CODE 4210-67-P
also consider relevant information activities;
pertaining to the recipient's (v)Suspending disbursement of ESG
performance gained from other sources, funds for some or all activities; DEPARTMENT OF HOUSING AND
including citizen comments,complaint (vi)Reducing or terminating the URBAN DEVELOPMENT
determinations,and litigation.Reviews remaining grant of a subrecipient and
to determine compliance with specific reallocating those funds to other 24 CFR Parts 91,582,and 583
requirements of thispart will be subrecipients;and
q (vii)Making matching contributions (Docket No.FR-5333-F-02]
conducted as necessary,with or without before or as draws are made from the
prior notice to the recipient. RIN 2506-AC26
(2)If HUD determines preliminarily recipient's ESG grant.
that the recipient or one of its (2)HUD may change the method of Homeless Emergency Assistance and
subrecipients has not complied with an Payment to a reimbursement basis. Rapid Transition to Housing: Defining
ESG program requirement,HUD will y3)HUD may suspend payments to' Homeless
the extent HUD deems it necessary to
give the recipient notice of this preclude the further expenditure of AGENCY:Office of the Assistant
determination and an opportunity to funds for affected activities. Secretary for Community Planning and
demonstrate,within the time prescribed (4)HUD may remove the recipient . Development,HUD.
by HUD and on the basis of substantial from participation in reallocations of ACTION:Final rule.
facts and data,that the recipient has funds under subpart D of this part.
complied with Emergency Solutions (5)HUD may deny matching credit for SUMMARY:The Homeless Emergency
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
entities that expend less than $300, 000 ($500, 000 for fiscal years ending
after December 31, 2003) a year in Federal awards are exempt from Federal
audit requirements for that year, except as noted in S .215 (a) , but records
must be available for review or audit by appropriate officials of the Federal
agency, pass-through entity, and General Accounting Office (GAO) .
(e) Federally Funded Research and Development Centers (FFRDC) .
Management of an auditee that owns or operates a FFRDC may elect to treat the
FFRDC as a separate entity for purposes of this part.
S .205 Basis for determining Federal awards expended.
(a) Determining Federal awards expended. The determination of when an
award is expended should be based on when the activity related to the award
occurs. Generally, the activity pertains to events that require the non-
Federal entity to comply with laws, regulations, and the provisions of '
contracts or grant agreements, such as: expenditure/expense transactions
associated with grants, cost-reimbursement contracts, cooperative agreements,
and direct appropriations; the disbursement of funds passed through to
subrecipients; the use of loan proceeds under loan and loan guarantee
programs; the receipt of property; the receipt of surplus property; the
receipt or use of program income; the distribution or consumption of food
commodities; the disbursement of amounts entitling the non-Federal entity to
an interest subsidy; and, the period when insurance is in force.
(b) Loan and loan guarantees (loans) . Since the Federal Government is
at risk for loans until the debt is repaid, the following guidelines shall be
used to calculate the value of Federal awards expended under loan programs,
except as noted in paragraphs (c) and (d) of this section:
(1) Value of new loans made or received during the fiscal year;
plus
(2) Balance of loans from previous years for which the Federal
Government imposes continuing compliance requirements; plus
(3) Any interest subsidy, cash, or administrative cost allowance
received.
(c) Loan and loan guarantees (loans) at institutions of higher
education. When loans are made to students of an institution of higher
education but the institution does not make the loans, then only the value of
loans made during the year shall be considered Federal awards expended in that
year. The balance of loans for previous years is not included as Federal
awards expended because the lender accounts for the prior balances.
(d) Prior loan and loan guarantees (loans) . Loans, the proceeds of
which were received and expended in prior-years, are not considered Federal
awards expended under this part when the laws, regulations, and the provisions
of contracts or grant agreements pertaining to such loans impose no continuing
compliance requirements other than to repay the loans.
(e) Endowment funds. The cumulative balance of Federal awards for
endowment funds which are federally restricted are considered awards expended
in each year in which the funds are still restricted.
(f) Free rent. Free rent received by itself is not considered a
Federal award expended under this part. However, free rent received as part
9
-Federal
8
in§576.203.
will rely primarily on information (iii)Canceling or revising activities
obtained from the records and reports likely to be affected by the Dated:November 9,2011.
from the recipient and,when noncompliance,before expending ESG Mercedes Marquez,
appropriate,its subrecipients,as well as funds for the activities; Assistant Secretary for Community Planning
information from onsite monitoring, (iv)Reprogramming ESG funds that and Development.
audit reports,and information from IDIS have not yet been expended from IFR Doc.2011-30938 Filed 12-2-11;8:45 am]
and HMIS.Where applicable,HUD may affected activities to other eligible BILLING CODE 4210-67-P
also consider relevant information activities;
pertaining to the recipient's (v)Suspending disbursement of ESG
performance gained from other sources, funds for some or all activities; DEPARTMENT OF HOUSING AND
including citizen comments,complaint (vi)Reducing or terminating the URBAN DEVELOPMENT
determinations,and litigation.Reviews remaining grant of a subrecipient and
to determine compliance with specific reallocating those funds to other 24 CFR Parts 91,582,and 583
requirements of thispart will be subrecipients;and
q (vii)Making matching contributions (Docket No.FR-5333-F-02]
conducted as necessary,with or without before or as draws are made from the
prior notice to the recipient. RIN 2506-AC26
(2)If HUD determines preliminarily recipient's ESG grant.
that the recipient or one of its (2)HUD may change the method of Homeless Emergency Assistance and
subrecipients has not complied with an Payment to a reimbursement basis. Rapid Transition to Housing: Defining
ESG program requirement,HUD will y3)HUD may suspend payments to' Homeless
the extent HUD deems it necessary to
give the recipient notice of this preclude the further expenditure of AGENCY:Office of the Assistant
determination and an opportunity to funds for affected activities. Secretary for Community Planning and
demonstrate,within the time prescribed (4)HUD may remove the recipient . Development,HUD.
by HUD and on the basis of substantial from participation in reallocations of ACTION:Final rule.
facts and data,that the recipient has funds under subpart D of this part.
complied with Emergency Solutions (5)HUD may deny matching credit for SUMMARY:The Homeless Emergency
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
of an award to carry out a Federal program shall be included in determining
Federal awards expended and subject to audit under this part.
(g) Valuing non-cash assistance. Federal non-cash assistance, such as
free rent, food stamps, food commodities, donated property, or donated surplus
property, shall be valued at fair market value at the time of receipt or the
assessed value provided by the Federal agency.
(h) Medicare. Medicare payments to a non-Federal entity for providing
patient care services to Medicare eligible individuals are not considered
Federal awards expended under this part.
(i) Medicaid. Medicaid payments to a subrecipient for providing
patient care services to Medicaid eligible individuals are not considered
Federal awards expended under this part unless a State requires the funds to
be treated as Federal awards expended because reimbursement is on a cost-
reimbursement basis.
(j) Certain loans provided by the National Credit Union
Administration. For purposes of this part, loans made from the National
Credit Union Share Insurance Fund and the Central Liquidity Facility that are
funded by contributions from insured institutions are not considered Federal
awards expended.
§ .210 Subrecipient and vendor determinations.
(a) General. An auditee may be a recipient, a subrecipient, and a
vendor. Federal awards expended as a recipient or a subrecipient would be
subject to audit under this part. The payments received for goods or services
provided as a vendor would not be considered Federal awards. The guidance in
paragraphs (b) and (c) of this section should be considered in determining
whether payments constitute a Federal award or a payment for goods and
services.
(b) Federal award. ' Characteristics indicative of a Federal award
received by a subrecipient are when the organization:
(1) Determines who is eligible to receive what Federal financial
assistance;
(2) Has its performance measured against whether the objectives
of the Federal program are met;
(3) Has responsibility for programmatic decision making;
(4) Has responsibility for adherence to applicable Federal
program compliance requirements; and
(5) Uses the Federal funds to carry out a program of the
organization as compared to providing goods or services for a program of the
pass-through entity.
(c) Payment for goods and services. Characteristics indicative of a
payment for goods and services received by a vendor are when the organization:
(1) Provides the goods and services within normal business
operations;
10
n prior-years, are not considered Federal
awards expended under this part when the laws, regulations, and the provisions
of contracts or grant agreements pertaining to such loans impose no continuing
compliance requirements other than to repay the loans.
(e) Endowment funds. The cumulative balance of Federal awards for
endowment funds which are federally restricted are considered awards expended
in each year in which the funds are still restricted.
(f) Free rent. Free rent received by itself is not considered a
Federal award expended under this part. However, free rent received as part
9
-Federal
8
in§576.203.
will rely primarily on information (iii)Canceling or revising activities
obtained from the records and reports likely to be affected by the Dated:November 9,2011.
from the recipient and,when noncompliance,before expending ESG Mercedes Marquez,
appropriate,its subrecipients,as well as funds for the activities; Assistant Secretary for Community Planning
information from onsite monitoring, (iv)Reprogramming ESG funds that and Development.
audit reports,and information from IDIS have not yet been expended from IFR Doc.2011-30938 Filed 12-2-11;8:45 am]
and HMIS.Where applicable,HUD may affected activities to other eligible BILLING CODE 4210-67-P
also consider relevant information activities;
pertaining to the recipient's (v)Suspending disbursement of ESG
performance gained from other sources, funds for some or all activities; DEPARTMENT OF HOUSING AND
including citizen comments,complaint (vi)Reducing or terminating the URBAN DEVELOPMENT
determinations,and litigation.Reviews remaining grant of a subrecipient and
to determine compliance with specific reallocating those funds to other 24 CFR Parts 91,582,and 583
requirements of thispart will be subrecipients;and
q (vii)Making matching contributions (Docket No.FR-5333-F-02]
conducted as necessary,with or without before or as draws are made from the
prior notice to the recipient. RIN 2506-AC26
(2)If HUD determines preliminarily recipient's ESG grant.
that the recipient or one of its (2)HUD may change the method of Homeless Emergency Assistance and
subrecipients has not complied with an Payment to a reimbursement basis. Rapid Transition to Housing: Defining
ESG program requirement,HUD will y3)HUD may suspend payments to' Homeless
the extent HUD deems it necessary to
give the recipient notice of this preclude the further expenditure of AGENCY:Office of the Assistant
determination and an opportunity to funds for affected activities. Secretary for Community Planning and
demonstrate,within the time prescribed (4)HUD may remove the recipient . Development,HUD.
by HUD and on the basis of substantial from participation in reallocations of ACTION:Final rule.
facts and data,that the recipient has funds under subpart D of this part.
complied with Emergency Solutions (5)HUD may deny matching credit for SUMMARY:The Homeless Emergency
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
(2) Provides similar goods or services to many different
purchasers;
(3) Operates in a competitive environment;
(4) Provides goods or services that are ancillary to the
operation of the Federal program; and
(5) Is not subject to compliance requirements of the Federal
program.
(d) Use of iudgment in making determination. There may be unusual
circumstances or exceptions to the listed characteristics. In making the
determination of whether a subrecipient or vendor relationship exists, the
substance of the relationship is more important than the form of the
agreement. It is not expected that all of the characteristics will be present
and judgment should be used in determining whether an entity is a subrecipient
or vendor.
(e) For-profit subrecipient. Since this part does not apply to for-
profit subrecipients, the pass-through entity is responsible for establishing
requirements, as necessary, to ensure compliance by for-profit subrecipients.
The contract with the for-profit subrecipient should describe applicable
compliance requirements and the for-profit subrecipient's compliance
responsibility. Methods to ensure compliance for Federal awards made to for-
profit subrecipients may include pre-award audits, monitoring during the
contract, and post-award audits.
(f) Compliance responsibility for vendors. In most cases, the
auditee's compliance responsibility for vendors is only to ensure that the
procurement, receipt, and payment for goods and services comply with laws,
regulations, and the provisions of contracts or grant agreements. Program
compliance requirements normally do not pass through to vendors. However, the.
auditee is responsible for ensuring compliance for vendor transactions which
are structured such that the vendor is responsible for program compliance or
the vendor's records must be reviewed to determine program compliance. Also,
when these vendor transactions relate to a major program, the scope of the
audit shall include determining whether these transactions are in compliance
with laws, regulations, and the provisions of contracts or grant agreements.
§ .215 Relation to other audit requirements.
(a) Audit under this part in lieu of other audits. An audit made in
accordance with this part shall be in lieu of any financial audit required
under individual Federal awards. To the extent this audit meets a Federal
agency's needs, it shall rely upon and use such audits. The provisions of
this part neither limit the authority of Federal agencies, including their
Inspectors General, or. GAO to conduct or arrange for additional audits (e.g. ,
financial audits, performance audits, evaluations, inspections, or reviews)
nor authorize any auditee to constrain Federal agencies from carrying out
additional audits. Any additional audits shall be planned and performed in
such a way as to build upon work performed by other auditors.
(b) Federal agency to pay for additional audits. A Federal agency
that conducts or contracts for additional audits shall, consistent with other
applicable laws and regulations, arrange for funding the full cost of such
additional audits.
11
nt received as part
9
-Federal
8
in§576.203.
will rely primarily on information (iii)Canceling or revising activities
obtained from the records and reports likely to be affected by the Dated:November 9,2011.
from the recipient and,when noncompliance,before expending ESG Mercedes Marquez,
appropriate,its subrecipients,as well as funds for the activities; Assistant Secretary for Community Planning
information from onsite monitoring, (iv)Reprogramming ESG funds that and Development.
audit reports,and information from IDIS have not yet been expended from IFR Doc.2011-30938 Filed 12-2-11;8:45 am]
and HMIS.Where applicable,HUD may affected activities to other eligible BILLING CODE 4210-67-P
also consider relevant information activities;
pertaining to the recipient's (v)Suspending disbursement of ESG
performance gained from other sources, funds for some or all activities; DEPARTMENT OF HOUSING AND
including citizen comments,complaint (vi)Reducing or terminating the URBAN DEVELOPMENT
determinations,and litigation.Reviews remaining grant of a subrecipient and
to determine compliance with specific reallocating those funds to other 24 CFR Parts 91,582,and 583
requirements of thispart will be subrecipients;and
q (vii)Making matching contributions (Docket No.FR-5333-F-02]
conducted as necessary,with or without before or as draws are made from the
prior notice to the recipient. RIN 2506-AC26
(2)If HUD determines preliminarily recipient's ESG grant.
that the recipient or one of its (2)HUD may change the method of Homeless Emergency Assistance and
subrecipients has not complied with an Payment to a reimbursement basis. Rapid Transition to Housing: Defining
ESG program requirement,HUD will y3)HUD may suspend payments to' Homeless
the extent HUD deems it necessary to
give the recipient notice of this preclude the further expenditure of AGENCY:Office of the Assistant
determination and an opportunity to funds for affected activities. Secretary for Community Planning and
demonstrate,within the time prescribed (4)HUD may remove the recipient . Development,HUD.
by HUD and on the basis of substantial from participation in reallocations of ACTION:Final rule.
facts and data,that the recipient has funds under subpart D of this part.
complied with Emergency Solutions (5)HUD may deny matching credit for SUMMARY:The Homeless Emergency
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
(c) Request for a program to be audited as a major program. A Federal
agency may request an auditee to have a particular Federal program audited as
a major program in lieu of the Federal agency conducting or arranging for the
additional audits. To allow for planning, such requests should be made at
least 180 days prior to the end of the fiscal year to be audited. The
auditee, after consultation with its auditor, should promptly respond to such
request by informing the Federal agency whether the program would otherwise be
audited as a major program using the risk-based audit approach described in
§ .520 and, if not, the estimated incremental cost. The Federal agency
shall then promptly confirm to the auditee whether it wants the program
audited as a major program. If the program is to be audited as a major
program based upon this Federal agency request, and the Federal agency agrees
to pay the full incremental costs, then the auditee shall have the program
audited as a major program. A pass-through entity may use the provisions of
this paragraph for a subrecipient.
§ .220 Frequency of audits.
Except for the provisions for biennial audits provided in paragraphs (a)
and (b) of this section, audits required by this part shall be performed
annually. Any biennial audit shall cover both years within the biennial
period.
(a) A State or local government that is required by constitution or
statute, in effect on January 1, 1987, to undergo its audits less frequently
than annually, is permitted to undergo its audits pursuant to this part
biennially. This requirement must still be in effect for the biennial period
under audit.
(b) Any non-profit organization that had biennial audits for all
biennial periods ending between July 1, 1992, and January 1, 1995, is
permitted to undergo its audits pursuant to this part biennially.
§ .225 Sanctions.
No audit costs may be charged to Federal awards when audits required by
this part have not been made or have been made but not in accordance with this
part. In cases of continued inability or unwillingness to have an audit
conducted in accordance with this part, Federal agencies and pass-through
entities shall take appropriate action using sanctions such as:
(a) Withholding a percentage of Federal awards until the audit is
completed satisfactorily;
(b) Withholding or disallowing overhead costs;
(c) Suspending Federal awards until the audit is conducted; or
(d) Terminating the Federal award.
§ .230 Audit costs.
(a) Allowable costs. Unless prohibited by law, the cost of audits
made in accordance with the provisions of this part are allowable charges to
Federal awards. The charges may be considered a direct cost or an allocated
indirect cost, as determined in accordance with the provisions of applicable
OMB cost principles circulars, the Federal Acquisition Regulation (FAR) (48
CFR parts 30 and 31) , or other applicable cost principles or regulations.
12
full cost of such
additional audits.
11
nt received as part
9
-Federal
8
in§576.203.
will rely primarily on information (iii)Canceling or revising activities
obtained from the records and reports likely to be affected by the Dated:November 9,2011.
from the recipient and,when noncompliance,before expending ESG Mercedes Marquez,
appropriate,its subrecipients,as well as funds for the activities; Assistant Secretary for Community Planning
information from onsite monitoring, (iv)Reprogramming ESG funds that and Development.
audit reports,and information from IDIS have not yet been expended from IFR Doc.2011-30938 Filed 12-2-11;8:45 am]
and HMIS.Where applicable,HUD may affected activities to other eligible BILLING CODE 4210-67-P
also consider relevant information activities;
pertaining to the recipient's (v)Suspending disbursement of ESG
performance gained from other sources, funds for some or all activities; DEPARTMENT OF HOUSING AND
including citizen comments,complaint (vi)Reducing or terminating the URBAN DEVELOPMENT
determinations,and litigation.Reviews remaining grant of a subrecipient and
to determine compliance with specific reallocating those funds to other 24 CFR Parts 91,582,and 583
requirements of thispart will be subrecipients;and
q (vii)Making matching contributions (Docket No.FR-5333-F-02]
conducted as necessary,with or without before or as draws are made from the
prior notice to the recipient. RIN 2506-AC26
(2)If HUD determines preliminarily recipient's ESG grant.
that the recipient or one of its (2)HUD may change the method of Homeless Emergency Assistance and
subrecipients has not complied with an Payment to a reimbursement basis. Rapid Transition to Housing: Defining
ESG program requirement,HUD will y3)HUD may suspend payments to' Homeless
the extent HUD deems it necessary to
give the recipient notice of this preclude the further expenditure of AGENCY:Office of the Assistant
determination and an opportunity to funds for affected activities. Secretary for Community Planning and
demonstrate,within the time prescribed (4)HUD may remove the recipient . Development,HUD.
by HUD and on the basis of substantial from participation in reallocations of ACTION:Final rule.
facts and data,that the recipient has funds under subpart D of this part.
complied with Emergency Solutions (5)HUD may deny matching credit for SUMMARY:The Homeless Emergency
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
(b) Unallowable costs. A non-Federal entity shall not charge the
following to a Federal award:
(1) The cost of any audit under the Single Audit Act Amendments
of 1996 (31 U.S.C. 7501 et seq. ) not conducted in accordance with this part.
(2) The cost of auditing a non-Federal entity which has Federal
awards expended of less than $300,000 ($500, 000 for fiscal years ending after
December 31, 2003) per year and is thereby exempted under § .200(d) from
having an audit conducted under this part. However, this does not prohibit a
pass-through entity from charging Federal awards for the cost of limited scope
audits to monitor its subrecipients in accordance with § .400(d) (3) ,
provided the subrecipient does not have a single audit. For purposes of this
part, limited scope audits only include agreed-upon procedures engagements
conducted in accordance with either the AICPA's generally accepted auditing
standards or attestation standards, that are paid for and arranged by a pass-
through entity and address only one or more of the following types of
compliance requirements: activities allowed or unallowed; allowable
costs/cost principles; eligibility; matching, level of effort, earmarking;
and, reporting.
5 .235 Program-specific audits.
(a) Program-specific audit guide available. In many cases, a program-
specific audit guide will be available to provide specific guidance to the
auditor with respect to internal control, compliance requirements, suggested
audit procedures, and audit reporting requirements. The auditor should
contact the Office of Inspector General of the Federal agency to determine
whether such a guide is available. When a current program-specific audit
guide is available, the auditor shall follow GAGAS and the guide when
performing a program-specific audit.
(b) Program-specific audit guide not available. (1) When a program-
specific audit guide is not available, the auditee and auditor shall have
basically the same responsibilities for the Federal program as they would have
for an audit of a major program in a single audit.
(2) The auditee shall prepare the financial statement(s) for the
Federal program that includes, at a minimum, a schedule of expenditures of
Federal awards for the program and notes that describe the significant
accounting policies used in preparing the schedule, a summary schedule of
prior audit findings consistent with the requirements of 5_.315(b) , and a
corrective action plan consistent with the requirements of § .315(c) .
(3) The auditor shall :
(i) Perform an audit of the financial statement(s) for the
Federal program in accordance with GAGAS;
(ii) Obtain an understanding of internal control and
perform tests of internal control over the Federal program consistent with the
requirements of §_.500(c) for a major program;
(iii) Perform procedures to determine whether the auditee
has complied with laws, regulations, and the provisions of contracts or grant
agreements that could have a direct and material effect on the Federal program
consistent with the requirements of §_.500(d) for a major program; and
13
obtained from the records and reports likely to be affected by the Dated:November 9,2011.
from the recipient and,when noncompliance,before expending ESG Mercedes Marquez,
appropriate,its subrecipients,as well as funds for the activities; Assistant Secretary for Community Planning
information from onsite monitoring, (iv)Reprogramming ESG funds that and Development.
audit reports,and information from IDIS have not yet been expended from IFR Doc.2011-30938 Filed 12-2-11;8:45 am]
and HMIS.Where applicable,HUD may affected activities to other eligible BILLING CODE 4210-67-P
also consider relevant information activities;
pertaining to the recipient's (v)Suspending disbursement of ESG
performance gained from other sources, funds for some or all activities; DEPARTMENT OF HOUSING AND
including citizen comments,complaint (vi)Reducing or terminating the URBAN DEVELOPMENT
determinations,and litigation.Reviews remaining grant of a subrecipient and
to determine compliance with specific reallocating those funds to other 24 CFR Parts 91,582,and 583
requirements of thispart will be subrecipients;and
q (vii)Making matching contributions (Docket No.FR-5333-F-02]
conducted as necessary,with or without before or as draws are made from the
prior notice to the recipient. RIN 2506-AC26
(2)If HUD determines preliminarily recipient's ESG grant.
that the recipient or one of its (2)HUD may change the method of Homeless Emergency Assistance and
subrecipients has not complied with an Payment to a reimbursement basis. Rapid Transition to Housing: Defining
ESG program requirement,HUD will y3)HUD may suspend payments to' Homeless
the extent HUD deems it necessary to
give the recipient notice of this preclude the further expenditure of AGENCY:Office of the Assistant
determination and an opportunity to funds for affected activities. Secretary for Community Planning and
demonstrate,within the time prescribed (4)HUD may remove the recipient . Development,HUD.
by HUD and on the basis of substantial from participation in reallocations of ACTION:Final rule.
facts and data,that the recipient has funds under subpart D of this part.
complied with Emergency Solutions (5)HUD may deny matching credit for SUMMARY:The Homeless Emergency
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
(iv) Follow up on prior audit findings, perform procedures
to assess the reasonableness of the summary schedule of prior audit findings
prepared by the auditee, and report, as a current year audit finding, when the
auditor concludes that the summary schedule of prior audit findings materially
misrepresents the status of any prior audit finding in accordance with the
requirements of § .500(e) .
(4) The auditor's report (s) may be in the form of either
combined or separate reports and may be organized differently from the manner
presented in this section. The auditor's report (s) shall state that the audit
was conducted in accordance with this part and include the following:
(i) An opinion (or disclaimer of opinion) as to whether
the financial statement (s) of the Federal program is presented fairly in all
material respects in conformity with the stated accounting policies;
(ii) A report on internal control related•to the Federal
program, which shall describe the scope of testing of internal control and the
results of the tests;
(iii) A report on compliance which includes an opinion (or
disclaimer of opinion) as to whether the auditee complied with laws,
regulations, and the provisions of contracts or grant agreements which could
have a direct and material effect on the Federal program; and
(iv) A schedule of findings and questioned costs for the
Federal program that includes a summary of the auditor's results relative to
the Federal program in a format consistent with § .505(d) (1) and findings
and questioned costs consistent with the requirements of §_.505(d) (3) .
(c) Report submission for program-specific audits.
(1) The audit shall be completed and the reporting required by paragraph
(c) (2) or (c) (3) of this section submitted within the earlier of 30 days after
receipt of the auditor' s report(s) , or nine months after the end of the audit
period, unless a longer period is agreed to in advance by the Federal agency
that provided the funding or a different period is specified in a program-
specific audit guide. (However, for fiscal years beginning on or before June
30, 1998, the audit shall be completed and the required reporting shall be
submitted within the earlier of 30 days after receipt of the auditor's
report (s) , or 13 months after the end of the audit period, unless a different
period is specified in a program-specific audit guide. ) Unless restricted by
law or regulation, the auditee shall make report copies available for public
inspection.
(2) When a program-specific audit guide is available, the
auditee shall submit to the Federal clearinghouse designated by OMB the data
collection form prepared in accordance with § .320(b) , as applicable to a
program-specific audit, and the reporting required by the program-specific
audit guide to be retained as an archival copy. Also, the auditee shall
submit to the Federal awarding agency or pass-through entity the reporting
required by the program-specific audit guide.
(3) When a program-specific audit guide is not available, the
reporting package for a program-specific audit shall consist of the financial
statement(s) of the Federal program, a summary schedule of prior audit
findings, and a corrective action plan as described in paragraph (b) (2) of
this section, and the auditor's report (s) described in paragraph (b) (4) of
this section. The data collection form prepared in accordance with
14
rquez,
appropriate,its subrecipients,as well as funds for the activities; Assistant Secretary for Community Planning
information from onsite monitoring, (iv)Reprogramming ESG funds that and Development.
audit reports,and information from IDIS have not yet been expended from IFR Doc.2011-30938 Filed 12-2-11;8:45 am]
and HMIS.Where applicable,HUD may affected activities to other eligible BILLING CODE 4210-67-P
also consider relevant information activities;
pertaining to the recipient's (v)Suspending disbursement of ESG
performance gained from other sources, funds for some or all activities; DEPARTMENT OF HOUSING AND
including citizen comments,complaint (vi)Reducing or terminating the URBAN DEVELOPMENT
determinations,and litigation.Reviews remaining grant of a subrecipient and
to determine compliance with specific reallocating those funds to other 24 CFR Parts 91,582,and 583
requirements of thispart will be subrecipients;and
q (vii)Making matching contributions (Docket No.FR-5333-F-02]
conducted as necessary,with or without before or as draws are made from the
prior notice to the recipient. RIN 2506-AC26
(2)If HUD determines preliminarily recipient's ESG grant.
that the recipient or one of its (2)HUD may change the method of Homeless Emergency Assistance and
subrecipients has not complied with an Payment to a reimbursement basis. Rapid Transition to Housing: Defining
ESG program requirement,HUD will y3)HUD may suspend payments to' Homeless
the extent HUD deems it necessary to
give the recipient notice of this preclude the further expenditure of AGENCY:Office of the Assistant
determination and an opportunity to funds for affected activities. Secretary for Community Planning and
demonstrate,within the time prescribed (4)HUD may remove the recipient . Development,HUD.
by HUD and on the basis of substantial from participation in reallocations of ACTION:Final rule.
facts and data,that the recipient has funds under subpart D of this part.
complied with Emergency Solutions (5)HUD may deny matching credit for SUMMARY:The Homeless Emergency
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
5 .320(b) , as applicable to a program-specific audit, and one copy of this
reporting package shall be submitted to the Federal clearinghouse designated
by OMB to be retained as an archival copy. Also, when the schedule of
findings and questioned costs disclosed audit findings or the summary schedule
of prior audit findings reported the status of any audit findings, the auditee
shall submit one copy of the reporting package to the Federal clearinghouse on
behalf of the Federal awarding agency, or directly to the pass-through entity
in the case of a subrecipient. Instead of submitting the reporting package to
the pass-through entity, when a subrecipient is not required to submit a
reporting package to the pass-through entity, the subrecipient shall provide
written notification to the pass-through entity, consistent with the
requirements of § .320(e) (2) . A subrecipient may submit a copy of the
reporting package to the pass-through entity to comply with this notification
requirement.
(d) Other sections of this part may apply. Program-specific audits
are subject to § .100 through § .215(b) , § .220 through 5 .230,
§ .300 through § .305, 5 .315, 5 .320(f) through 5_.320(j) , § .400
through § .405, S .510 through § .515, and other referenced provisions
of this part unless contrary to the provisions of this section, a program-
specific audit guide, or program laws and regulations.
Subpart C--Auditees
§ .300 Auditee responsibilities.
The auditee shall:
(a) Identify, in its accounts, all Federal awards received and
expended and the Federal programs under which they were received. Federal
program and award identification shall include, as applicable, the CFDA title
and number, award number and year, name of the Federal agency, and name of the
pass-through entity.
(b) Maintain internal control over Federal programs that provides
reasonable assurance that the auditee is managing
Federal awards in compliance with laws, regulations, and the provisions of
contracts or grant agreements that could have a material effect on each of its
Federal programs.
(c) Comply with laws, regulations, and the provisions of contracts or
grant agreements related to each of its Federal programs.
(d) Prepare appropriate financial statements, including the schedule
of expenditures of Federal awards in accordance with 5 .310.
(e) Ensure that the audits required by this part are properly
performed and submitted when due. When extensions to the report submission
due date required by §_.320(a) are granted by the cognizant or oversight
agency for audit, promptly notify the Federal clearinghouse designated by OMB
and each pass-through entity providing Federal awards of the extension.
(f) Follow up and take corrective action on audit findings, including
preparation of a summary schedule of prior audit findings and a corrective
action plan in accordance with § .315(b) and § .315(c) , respectively.
5 .305 Auditor selection.
15
guide.
(3) When a program-specific audit guide is not available, the
reporting package for a program-specific audit shall consist of the financial
statement(s) of the Federal program, a summary schedule of prior audit
findings, and a corrective action plan as described in paragraph (b) (2) of
this section, and the auditor's report (s) described in paragraph (b) (4) of
this section. The data collection form prepared in accordance with
14
rquez,
appropriate,its subrecipients,as well as funds for the activities; Assistant Secretary for Community Planning
information from onsite monitoring, (iv)Reprogramming ESG funds that and Development.
audit reports,and information from IDIS have not yet been expended from IFR Doc.2011-30938 Filed 12-2-11;8:45 am]
and HMIS.Where applicable,HUD may affected activities to other eligible BILLING CODE 4210-67-P
also consider relevant information activities;
pertaining to the recipient's (v)Suspending disbursement of ESG
performance gained from other sources, funds for some or all activities; DEPARTMENT OF HOUSING AND
including citizen comments,complaint (vi)Reducing or terminating the URBAN DEVELOPMENT
determinations,and litigation.Reviews remaining grant of a subrecipient and
to determine compliance with specific reallocating those funds to other 24 CFR Parts 91,582,and 583
requirements of thispart will be subrecipients;and
q (vii)Making matching contributions (Docket No.FR-5333-F-02]
conducted as necessary,with or without before or as draws are made from the
prior notice to the recipient. RIN 2506-AC26
(2)If HUD determines preliminarily recipient's ESG grant.
that the recipient or one of its (2)HUD may change the method of Homeless Emergency Assistance and
subrecipients has not complied with an Payment to a reimbursement basis. Rapid Transition to Housing: Defining
ESG program requirement,HUD will y3)HUD may suspend payments to' Homeless
the extent HUD deems it necessary to
give the recipient notice of this preclude the further expenditure of AGENCY:Office of the Assistant
determination and an opportunity to funds for affected activities. Secretary for Community Planning and
demonstrate,within the time prescribed (4)HUD may remove the recipient . Development,HUD.
by HUD and on the basis of substantial from participation in reallocations of ACTION:Final rule.
facts and data,that the recipient has funds under subpart D of this part.
complied with Emergency Solutions (5)HUD may deny matching credit for SUMMARY:The Homeless Emergency
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
(a) Auditor procurement. In procuring audit services, auditees shall
follow the procurement standards prescribed by the Grants Management Common
Rule (hereinafter referred to as the "A-102 Common Rule") published March 11,
1988 and amended April 19, 1995 [insert appropriate CFR citation] , Circular
A-110, "Uniform Administrative Requirements for Grants and Agreements with
Institutions of Higher Education, Hospitals and Other Non-Profit
Organizations, " or the FAR (48 CFR part 42) , as applicable (OMB Circulars are
available from the Office of Administration, Publications Office, room 2200,
New Executive Office Building, Washington, DC 20503) . Whenever possible,
auditees shall make positive efforts to utilize small businesses, minority-
owned firms, and women's business enterprises, in procuring audit services as
stated in the A-102 Common Rule, OMB Circular A-110, or the FAR (48 CFR part
42) , as applicable. In requesting proposals for audit services, the
objectives and scope of the audit should be made clear. Factors to be
considered in evaluating each proposal for audit services include the
responsiveness to the request for proposal, relevant experience, availability
of staff with professional qualifications and technical abilities, the results
of external quality control reviews, and price.
(b) Restriction on auditor preparing indirect cost proposals . An
auditor who prepares the indirect cost proposal or cost allocation plan may
not also be selected to perform the audit required by this part when the
indirect costs recovered by the auditee during the prior year exceeded $1
million. This restriction applies to the base year used in the preparation of
the indirect cost proposal or cost allocation plan and any subsequent years in
which the resulting indirect cost agreement or cost allocation plan is used to
recover costs. To minimize any disruption in existing contracts for audit
services, this paragraph applies to audits of fiscal years beginning after
June 30, 1998.
(c) Use of Federal auditors. Federal auditors may perform all or part
of the work required under this part if they comply fully with the
requirements of this part.
§ .310 Financial statements.
(a) Financial statements. The auditee shall prepare financial
statements that reflect its financial position, results of operations or
changes in net assets, and, where appropriate, cash flows for the fiscal year
audited. The financial statements shall be for the same organizational unit
and fiscal year that is chosen to meet the requirements of this part.
However, organization-wide financial statements may also include departments,
agencies, and other organizational units that have separate audits in
accordance with § .500(a) and prepare separate financial statements.
(b) Schedule of expenditures of Federal awards . The auditee shall
also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee's financial statements. While not required, the
auditee may choose to provide information requested by Federal awarding
agencies and pass-through entities to make the schedule easier to use. For
example, when a Federal program has multiple award years, the auditee may list
the amount of Federal awards expended for each award year separately. At a
minimum, the schedule shall:
(1) List individual Federal programs by Federal agency. For
Federal programs included in a cluster of programs, list individual Federal
programs within a cluster of programs. For R&D, total Federal awards expended
shall be shown either by individual award or by Federal agency and major
subdivision within the Federal agency. For example, the National Institutes
of Health is a major subdivision in the Department of Health and Human
Services.
16
0938 Filed 12-2-11;8:45 am]
and HMIS.Where applicable,HUD may affected activities to other eligible BILLING CODE 4210-67-P
also consider relevant information activities;
pertaining to the recipient's (v)Suspending disbursement of ESG
performance gained from other sources, funds for some or all activities; DEPARTMENT OF HOUSING AND
including citizen comments,complaint (vi)Reducing or terminating the URBAN DEVELOPMENT
determinations,and litigation.Reviews remaining grant of a subrecipient and
to determine compliance with specific reallocating those funds to other 24 CFR Parts 91,582,and 583
requirements of thispart will be subrecipients;and
q (vii)Making matching contributions (Docket No.FR-5333-F-02]
conducted as necessary,with or without before or as draws are made from the
prior notice to the recipient. RIN 2506-AC26
(2)If HUD determines preliminarily recipient's ESG grant.
that the recipient or one of its (2)HUD may change the method of Homeless Emergency Assistance and
subrecipients has not complied with an Payment to a reimbursement basis. Rapid Transition to Housing: Defining
ESG program requirement,HUD will y3)HUD may suspend payments to' Homeless
the extent HUD deems it necessary to
give the recipient notice of this preclude the further expenditure of AGENCY:Office of the Assistant
determination and an opportunity to funds for affected activities. Secretary for Community Planning and
demonstrate,within the time prescribed (4)HUD may remove the recipient . Development,HUD.
by HUD and on the basis of substantial from participation in reallocations of ACTION:Final rule.
facts and data,that the recipient has funds under subpart D of this part.
complied with Emergency Solutions (5)HUD may deny matching credit for SUMMARY:The Homeless Emergency
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
(2) For Federal awards received as a subrecipient, the name of.
the pass-through entity and identifying number assigned by the pass-through
entity shall be included.
(3) Provide total Federal awards expended for each individual
Federal program and the CFDA number or other identifying number when the CFDA
information is not available.
(4) Include notes that describe the significant accounting
policies used in preparing the schedule.
(5) To the extent practical, pass-through entities should
identify in the schedule the total amount provided to subrecipients from each
Federal program.
(6) Include, in either the schedule or a note to the schedule,
the value of the Federal awards expended in the form of non-cash assistance,
the amount of insurance in effect during the year, and loans or loan
guarantees outstanding at year end. While not required, it is preferable to
present this information in the schedule.
§ .315 Audit findings follow-up.
(a) General. The auditee is responsible for follow-up and corrective
action on all audit findings. As part of this responsibility, the auditee
shall prepare a summary schedule of prior audit findings. The auditee shall
also prepare a corrective action plan for current year audit findings. The
summary schedule of prior audit findings and the corrective action plan shall
include the reference numbers the auditor assigns to audit findings under
§ .510(c) . Since the summary schedule may include audit findings from
multiple years, it shall include the fiscal year in which the finding
initially occurred.
(b) Summary schedule of prior audit findings . The summary schedule of
prior audit findings shall report the status of all audit findings included in
the prior audit's schedule of findings and questioned costs relative to
Federal awards. The summary schedule shall also include audit findings
reported in the prior audit's summary schedule of prior audit findings except
audit findings listed as corrected in accordance with paragraph (b) (1) of this
section, or no longer valid or not warranting further action in accordance
with paragraph (b) (4) of this section.
(1) When audit findings were fully corrected, the summary
schedule need only list the audit findings and state that corrective action
was taken.
(2) When audit findings were not corrected or were only
partially corrected, the summary schedule shall describe the planned
corrective action as well as any partial corrective action taken.
(3) When corrective action taken is significantly different from
corrective action previously reported in a corrective action plan or in the
Federal agency's or pass-through entity's management decision, the summary
schedule shall provide an explanation.
(4) ' When the auditee believes the audit findings are no longer
valid or do not warrant further action, the reasons for this position shall be
described in the summary schedule. A valid reason for considering an audit
finding as not warranting further action is that all of the following have
occurred:
(i) Two years have passed since the audit report in which
17
ay list
the amount of Federal awards expended for each award year separately. At a
minimum, the schedule shall:
(1) List individual Federal programs by Federal agency. For
Federal programs included in a cluster of programs, list individual Federal
programs within a cluster of programs. For R&D, total Federal awards expended
shall be shown either by individual award or by Federal agency and major
subdivision within the Federal agency. For example, the National Institutes
of Health is a major subdivision in the Department of Health and Human
Services.
16
0938 Filed 12-2-11;8:45 am]
and HMIS.Where applicable,HUD may affected activities to other eligible BILLING CODE 4210-67-P
also consider relevant information activities;
pertaining to the recipient's (v)Suspending disbursement of ESG
performance gained from other sources, funds for some or all activities; DEPARTMENT OF HOUSING AND
including citizen comments,complaint (vi)Reducing or terminating the URBAN DEVELOPMENT
determinations,and litigation.Reviews remaining grant of a subrecipient and
to determine compliance with specific reallocating those funds to other 24 CFR Parts 91,582,and 583
requirements of thispart will be subrecipients;and
q (vii)Making matching contributions (Docket No.FR-5333-F-02]
conducted as necessary,with or without before or as draws are made from the
prior notice to the recipient. RIN 2506-AC26
(2)If HUD determines preliminarily recipient's ESG grant.
that the recipient or one of its (2)HUD may change the method of Homeless Emergency Assistance and
subrecipients has not complied with an Payment to a reimbursement basis. Rapid Transition to Housing: Defining
ESG program requirement,HUD will y3)HUD may suspend payments to' Homeless
the extent HUD deems it necessary to
give the recipient notice of this preclude the further expenditure of AGENCY:Office of the Assistant
determination and an opportunity to funds for affected activities. Secretary for Community Planning and
demonstrate,within the time prescribed (4)HUD may remove the recipient . Development,HUD.
by HUD and on the basis of substantial from participation in reallocations of ACTION:Final rule.
facts and data,that the recipient has funds under subpart D of this part.
complied with Emergency Solutions (5)HUD may deny matching credit for SUMMARY:The Homeless Emergency
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
the finding occurred was submitted to the Federal clearinghouse;
(ii) The Federal agency or pass-through entity is not
currently following up with the auditee on the audit finding; and
(iii) A management decision was not issued.
(c) Corrective action plan. At the completion of the audit, the
auditee shall prepare a corrective action plan to address each audit finding
included in the current year auditor's reports. The corrective action plan
shall provide the name(s) of the contact person(s) responsible for corrective
action, the corrective action planned, and the anticipated completion date.
If the auditee does not agree with the audit findings or believes corrective
action is not required, then the corrective action plan shall include an
explanation and specific reasons.
§_.320 Report submission.
(a) General . The audit shall be completed and the data collection
form described in paragraph (b) of this section and reporting package
described in paragraph (c) of this section shall be submitted within the
earlier of 30 days after receipt of the auditor's report (s) , or nine months
after the end of the audit period, unless a longer period is agreed to in
advance by the cognizant or oversight agency' for audit. (However, for fiscal
years beginning on or before June 30, 1998, the audit shall be completed and
the data collection form and reporting package shall be submitted within the
earlier of 30 days after receipt of the auditor's report(s) , or 13 months
after the end of the audit period. ) Unless restricted by law or regulation,
the auditee shall make copies available for public inspection.
(b) Data Collection. (1) The auditee shall submit a data collection
form which states whether the audit was completed in accordance with this part
and provides information about the auditee, its Federal programs, and the
results of the audit. The form shall be approved by OMB, available from the
Federal clearinghouse designated by OMB, and include data elements similar to
those presented in this paragraph. A senior level representative of the
auditee (e.g. , State controller, director of finance, chief executive officer,
or chief financial officer) shall sign a statement to be included as part of
the form certifying that: the auditee complied with the requirements of this
part, the form was prepared in accordance with this part (and the instructions
accompanying the form) , and the information included in the form, in its
entirety, are accurate and complete.
(2) The data collection form shall include the following data
elements.:
(i) The type of report the auditor issued on the financial statements of
the auditee (i.e. , unqualified opinion, qualified opinion, adverse
opinion, or disclaimer of opinion) .
(ii) Where applicable, a statement that significant deficiencies in internal
control were disclosed by the audit of the financial statements and
whether any such conditions were material weaknesses.
(iii) A statement as to whether the audit disclosed any noncompliance which
is material to the financial statements of the auditee..
(iv) Where applicable, a statement that significant deficiencies in internal
control over major programs were disclosed by the audit and whether
any such conditions were material weaknesses.
(v) The type of report the auditor issued on compliance for major
18
rams, list individual Federal
programs within a cluster of programs. For R&D, total Federal awards expended
shall be shown either by individual award or by Federal agency and major
subdivision within the Federal agency. For example, the National Institutes
of Health is a major subdivision in the Department of Health and Human
Services.
16
0938 Filed 12-2-11;8:45 am]
and HMIS.Where applicable,HUD may affected activities to other eligible BILLING CODE 4210-67-P
also consider relevant information activities;
pertaining to the recipient's (v)Suspending disbursement of ESG
performance gained from other sources, funds for some or all activities; DEPARTMENT OF HOUSING AND
including citizen comments,complaint (vi)Reducing or terminating the URBAN DEVELOPMENT
determinations,and litigation.Reviews remaining grant of a subrecipient and
to determine compliance with specific reallocating those funds to other 24 CFR Parts 91,582,and 583
requirements of thispart will be subrecipients;and
q (vii)Making matching contributions (Docket No.FR-5333-F-02]
conducted as necessary,with or without before or as draws are made from the
prior notice to the recipient. RIN 2506-AC26
(2)If HUD determines preliminarily recipient's ESG grant.
that the recipient or one of its (2)HUD may change the method of Homeless Emergency Assistance and
subrecipients has not complied with an Payment to a reimbursement basis. Rapid Transition to Housing: Defining
ESG program requirement,HUD will y3)HUD may suspend payments to' Homeless
the extent HUD deems it necessary to
give the recipient notice of this preclude the further expenditure of AGENCY:Office of the Assistant
determination and an opportunity to funds for affected activities. Secretary for Community Planning and
demonstrate,within the time prescribed (4)HUD may remove the recipient . Development,HUD.
by HUD and on the basis of substantial from participation in reallocations of ACTION:Final rule.
facts and data,that the recipient has funds under subpart D of this part.
complied with Emergency Solutions (5)HUD may deny matching credit for SUMMARY:The Homeless Emergency
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
programs (i.e. , unqualified opinion, qualified opinion, adverse
opinion, or disclaimer of opinion) .
(vi) A list of the Federal awarding agencies which will receive a copy of
the reporting package pursuant to § .320(d) (2) of OMB Circular
A-133.
(vii) A yes or no statement as to whether the auditee qualified as a low-
risk auditee under § .530 of OMB Circular A-133 .
(viii) The dollar threshold used to distinguish between Type A and Type B
programs as defined in §_.520(b) of OMB Circular A-133 .
(ix) The Catalog of Federal Domestic Assistance (CFDA) number for each
Federal program, as applicable.
(x) The name of each Federal program and identification of each major
program. Individual programs within a cluster of programs should be
listed in the same level of detail as they are listed in the schedule
of expenditures of Federal awards.
(xi) The amount of expenditures in the schedule of expenditures of Federal
awards associated with each Federal program.
(xii) For each Federal program, a yes or no statement as to whether there
are audit findings in each of the following types of compliance
requirements and the total amount of any questioned costs:
(A) Activities allowed or unallowed.
(B) Allowable costs/cost principles.
(C) Cash management.
(D) Davis-Bacon Act.
(E) Eligibility.
(F) Equipment and real property management.
(G) , Matching, level of effort, earmarking.
(H) Period of availability of Federal funds.
(I) Procurement and suspension and debarment.
(J) Program income.
(K) Real property acquisition and relocation assistance.
(L) Reporting.
(M) Subrecipient monitoring.
(N) Special tests and provisions.
(xiii) Auditee Name, Employer Identification Number(s) , Name and Title of
Certifying Official, Telephone Number, Signature, and Date.
(xiv) Auditor Name, Name and Title of Contact Person, Auditor Address,
Auditor Telephone Number, Signature, and Date.
(xv) Whether the auditee has either a cognizant or oversight agency for
audit.
(xvi) The name of the cognizant or oversight agency for audit determined in
accordance with § .400(a) and § .400(b) , respectively.
(3) Using the information included in the reporting package
described in paragraph (c) of this section, the auditor shall complete the
applicable sections of the form. The auditor shall sign a statement to be
included as part of the data collection form that indicates, at a minimum, the
source of the information included in the form, the auditor's responsibility
for the information, that the form is not a substitute for the reporting
package described in paragraph (c) of this section, and that the content of
19
ents and
whether any such conditions were material weaknesses.
(iii) A statement as to whether the audit disclosed any noncompliance which
is material to the financial statements of the auditee..
(iv) Where applicable, a statement that significant deficiencies in internal
control over major programs were disclosed by the audit and whether
any such conditions were material weaknesses.
(v) The type of report the auditor issued on compliance for major
18
rams, list individual Federal
programs within a cluster of programs. For R&D, total Federal awards expended
shall be shown either by individual award or by Federal agency and major
subdivision within the Federal agency. For example, the National Institutes
of Health is a major subdivision in the Department of Health and Human
Services.
16
0938 Filed 12-2-11;8:45 am]
and HMIS.Where applicable,HUD may affected activities to other eligible BILLING CODE 4210-67-P
also consider relevant information activities;
pertaining to the recipient's (v)Suspending disbursement of ESG
performance gained from other sources, funds for some or all activities; DEPARTMENT OF HOUSING AND
including citizen comments,complaint (vi)Reducing or terminating the URBAN DEVELOPMENT
determinations,and litigation.Reviews remaining grant of a subrecipient and
to determine compliance with specific reallocating those funds to other 24 CFR Parts 91,582,and 583
requirements of thispart will be subrecipients;and
q (vii)Making matching contributions (Docket No.FR-5333-F-02]
conducted as necessary,with or without before or as draws are made from the
prior notice to the recipient. RIN 2506-AC26
(2)If HUD determines preliminarily recipient's ESG grant.
that the recipient or one of its (2)HUD may change the method of Homeless Emergency Assistance and
subrecipients has not complied with an Payment to a reimbursement basis. Rapid Transition to Housing: Defining
ESG program requirement,HUD will y3)HUD may suspend payments to' Homeless
the extent HUD deems it necessary to
give the recipient notice of this preclude the further expenditure of AGENCY:Office of the Assistant
determination and an opportunity to funds for affected activities. Secretary for Community Planning and
demonstrate,within the time prescribed (4)HUD may remove the recipient . Development,HUD.
by HUD and on the basis of substantial from participation in reallocations of ACTION:Final rule.
facts and data,that the recipient has funds under subpart D of this part.
complied with Emergency Solutions (5)HUD may deny matching credit for SUMMARY:The Homeless Emergency
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
• the form is limited to the data elements prescribed by OMB.
(c) Reporting package. The reporting package shall include the:
(1) Financial statements and schedule of expenditures of
Federal awards discussed in § .310(a) and § .310(b) , respectively;
(2) Summary schedule of prior audit findings discussed in
§ .315(b) ;
(3) Auditor's report (s) discussed in § .505; and
(4) Corrective action plan discussed in § .315(c) .
(d) Submission to clearinghouse. All auditees shall submit to the Federal
clearinghouse designated by OMB a single copy of the data collection form
described in paragraph (b) of this section and the reporting package described
in paragraph (c) of this section.
•
(e) Additional submission by subrecipients . (1) In addition to the
requirements discussed in paragraph (d) of this section, auditees that are
also subrecipients shall submit to each pass-through entity one copy of the
r reporting package described in paragraph (c) of this section for each pass-
through entity when the schedule of findings and questioned costs disclosed
audit findings relating to Federal awards that the pass-through entity
provided or the summary schedule of prior audit findings reported the status
of any audit findings relating to Federal awards that the pass-through entity
provided.
(2) Instead of submitting the reporting package to a pass-
through entity, when a subrecipient is not required to submit a reporting
package to a pass-through entity pursuant to paragraph (e) (1) of this section,
the subrecipient shall provide written notification to the pass-through entity
that: an audit of the subrecipient was conducted in accordance with this part
(including the period covered by the audit and the name, amount, and CFDA
number of the Federal award(s) provided by the pass-through entity) ; the
schedule of findings and questioned costs disclosed no audit findings relating
to the Federal award(s) that the pass-through entity provided; and, the
summary schedule of prior audit findings did not report on the status of any
audit findings relating to the Federal award(s) that the pass-through entity
provided. A subrecipient may submit a copy of the reporting package described
in paragraph (c) of this section to a pass-through entity to comply with this
notification requirement.
(f) Requests for report copies . In response to requests by a Federal
agency or pass-through entity, auditees shall submit the appropriate copies of
the reporting package described in paragraph (c) of this section and, if
requested, a copy of any management letters issued by the auditor.
(g) Report retention requirements . Auditees shall keep one copy of
the data collection. form described in paragraph (b) of this section and one
copy of the reporting package described in paragraph (c) of this section on
file for three years from the date of submission to the Federal clearinghouse
20
auditee..
(iv) Where applicable, a statement that significant deficiencies in internal
control over major programs were disclosed by the audit and whether
any such conditions were material weaknesses.
(v) The type of report the auditor issued on compliance for major
18
rams, list individual Federal
programs within a cluster of programs. For R&D, total Federal awards expended
shall be shown either by individual award or by Federal agency and major
subdivision within the Federal agency. For example, the National Institutes
of Health is a major subdivision in the Department of Health and Human
Services.
16
0938 Filed 12-2-11;8:45 am]
and HMIS.Where applicable,HUD may affected activities to other eligible BILLING CODE 4210-67-P
also consider relevant information activities;
pertaining to the recipient's (v)Suspending disbursement of ESG
performance gained from other sources, funds for some or all activities; DEPARTMENT OF HOUSING AND
including citizen comments,complaint (vi)Reducing or terminating the URBAN DEVELOPMENT
determinations,and litigation.Reviews remaining grant of a subrecipient and
to determine compliance with specific reallocating those funds to other 24 CFR Parts 91,582,and 583
requirements of thispart will be subrecipients;and
q (vii)Making matching contributions (Docket No.FR-5333-F-02]
conducted as necessary,with or without before or as draws are made from the
prior notice to the recipient. RIN 2506-AC26
(2)If HUD determines preliminarily recipient's ESG grant.
that the recipient or one of its (2)HUD may change the method of Homeless Emergency Assistance and
subrecipients has not complied with an Payment to a reimbursement basis. Rapid Transition to Housing: Defining
ESG program requirement,HUD will y3)HUD may suspend payments to' Homeless
the extent HUD deems it necessary to
give the recipient notice of this preclude the further expenditure of AGENCY:Office of the Assistant
determination and an opportunity to funds for affected activities. Secretary for Community Planning and
demonstrate,within the time prescribed (4)HUD may remove the recipient . Development,HUD.
by HUD and on the basis of substantial from participation in reallocations of ACTION:Final rule.
facts and data,that the recipient has funds under subpart D of this part.
complied with Emergency Solutions (5)HUD may deny matching credit for SUMMARY:The Homeless Emergency
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
designated by OMB. Pass-through entities shall keep subrecipients'
submissions on file for three years from date of receipt.
(h) Clearinghouse responsibilities . The Federal clearinghouse
designated by OMB shall distribute the reporting packages received in
accordance with paragraph (d) (2) of this section and § .235 (c) (3) to
applicable Federal awarding agencies, maintain a data base of completed
audits, provide appropriate information to Federal agencies, and follow up
with known auditees which have not submitted the required data collection
forms and reporting packages.
(i) Clearinghouse address . The address of the Federal clearinghouse
currently designated by OMB is Federal Audit Clearinghouse, Bureau of the
Census, 1201 E. 10th Street, Jeffersonville, IN 47132.
(j) Electronic filing. Nothing in this part shall preclude electronic
submissions to the Federal clearinghouse in such manner as may be approved by
OMB. With OMB approval, the Federal clearinghouse may pilot test methods of
electronic submissions.
Subpart D--Federal Agencies and Pass-Through Entities
§ .400 Responsibilities.
(a) Cognizant agency for audit responsibilities . Recipients expending
more than $25 million ($50 million for fiscal years ending after December 31,
2003) a year in Federal awards shall have a cognizant agency for audit. The
designated cognizant agency for audit shall be the Federal awarding agency
that provides the predominant amount of direct funding to a recipient unless
OMB makes a specific cognizant agency for audit assignment.
Following is effective for fiscal years ending on or before December 31, 2003:
To provide for continuity of cognizance, the determination of the predominant
amount of direct funding shall be based upon direct Federal awards expended in
the recipient's fiscal years ending in 1995, 2000, 2005, and every fifth year
thereafter. For example, audit cognizance for periods ending in 1997 through
2000 will be determined based on Federal awards expended in 1995. (However,
for States and local governments that expend more than $25 million a year in
Federal awards and have previously assigned cognizant agencies for audit, the
requirements of this paragraph are not effective until fiscal years beginning
after June 30, 2000. )
Following is effective for fiscal years ending after December 31, 2003:
The determination of the predominant amount of direct funding shall be based
upon direct Federal awards expended in the recipient's fiscal years ending in
2004, 2009, 2014, and every fifth year thereafter. For example, audit
cognizance for periods ending in 2006 through 2010 will be determined based on
Federal awards expended in 2004. (However, for 2001 through 2005,the
cognizant agency for audit is determined based on the predominant amount of.
direct Federal awards expended in the recipient's fiscal year ending in 2000) .
Notwithstanding the manner in which audit cognizance is determined, a Federal
awarding agency with cognizance for an auditee may reassign cognizance to
another Federal awarding agency which provides substantial direct funding and
agrees to be the cognizant agency for audit. Within 30 days after any
reassignment, both the old and the new cognizant agency for audit shall notify
the auditee, and, if known, the auditor of the reassignment. The cognizant
agency for audit shall:
(1) Provide technical audit advice and liaison to auditees and
auditors.
(2) Consider auditee requests for extensions to the report
21
it
he Department of Health and Human
Services.
16
0938 Filed 12-2-11;8:45 am]
and HMIS.Where applicable,HUD may affected activities to other eligible BILLING CODE 4210-67-P
also consider relevant information activities;
pertaining to the recipient's (v)Suspending disbursement of ESG
performance gained from other sources, funds for some or all activities; DEPARTMENT OF HOUSING AND
including citizen comments,complaint (vi)Reducing or terminating the URBAN DEVELOPMENT
determinations,and litigation.Reviews remaining grant of a subrecipient and
to determine compliance with specific reallocating those funds to other 24 CFR Parts 91,582,and 583
requirements of thispart will be subrecipients;and
q (vii)Making matching contributions (Docket No.FR-5333-F-02]
conducted as necessary,with or without before or as draws are made from the
prior notice to the recipient. RIN 2506-AC26
(2)If HUD determines preliminarily recipient's ESG grant.
that the recipient or one of its (2)HUD may change the method of Homeless Emergency Assistance and
subrecipients has not complied with an Payment to a reimbursement basis. Rapid Transition to Housing: Defining
ESG program requirement,HUD will y3)HUD may suspend payments to' Homeless
the extent HUD deems it necessary to
give the recipient notice of this preclude the further expenditure of AGENCY:Office of the Assistant
determination and an opportunity to funds for affected activities. Secretary for Community Planning and
demonstrate,within the time prescribed (4)HUD may remove the recipient . Development,HUD.
by HUD and on the basis of substantial from participation in reallocations of ACTION:Final rule.
facts and data,that the recipient has funds under subpart D of this part.
complied with Emergency Solutions (5)HUD may deny matching credit for SUMMARY:The Homeless Emergency
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
submission due date required by § .320(a) . The cognizant agency for audit
may grant extensions for good cause.
(3) Obtain or conduct quality control reviews of selected
audits made by non-Federal auditors, and provide the results, when
appropriate, to other interested organizations.
(4) Promptly inform other affected Federal agencies and
appropriate Federal law enforcement officials of any direct reporting by the
auditee or its auditor of irregularities or illegal acts, as required by GAGAS
or laws and regulations.
(5) Advise the auditor and, where appropriate, the auditee of
any deficiencies found in the audits when the deficiencies require corrective
action by the auditor. When advised of deficiencies, the auditee shall work
with the auditor to take corrective action. If corrective action is not
taken, the cognizant agency for audit shall notify the auditor, the auditee,
and applicable Federal awarding agencies and pass-through entities of the
facts and make recommendations for follow-up action. Major inadequacies or
repetitive substandard performance by auditors shall be referred to
appropriate State licensing agencies and professional bodies for disciplinary
action.
(6) Coordinate, to the extent practical, audits or reviews
made by or for Federal agencies that are in addition to the audits made
pursuant to this part, so that the additional audits or reviews build upon
audits performed in accordance with this part.
(7) Coordinate a management decision for audit findings that
affect the Federal programs of more than one agency.
(8) Coordinate the audit work and reporting responsibilities
among auditors to achieve the most cost-effective audit.
(9) For biennial audits permitted under § .220, consider
auditee requests to qualify as a low-risk auditee under. §_.530(a) .
(b) Oversight agency for audit responsibilities . An auditee which
does not have a designated cognizant agency for audit will be under the
general oversight of the Federal agency determined in accordance with
§ .105. The oversight agency for audit:
(1) Shall provide technical advice to auditees and auditors as
requested.
(2) May assume all or some of the responsibilities normally
performed by a cognizant agency for audit.
(c) Federal awarding agency responsibilities . The Federal awarding
agency shall perform the following for the Federal awards it makes:
(1) Identify Federal awards made by informing each recipient
of the CFDA title and number, award name and number, award year, and if the
award is for R&D. When some of this information is not available, the Federal
agency shall provide information necessary to clearly describe the Federal
award.
(2) Advise recipients of requirements imposed on them by
Federal laws, regulations, and the provisions of contracts or grant
agreements.
(3) Ensure that audits are completed and reports are received
22
g agency with cognizance for an auditee may reassign cognizance to
another Federal awarding agency which provides substantial direct funding and
agrees to be the cognizant agency for audit. Within 30 days after any
reassignment, both the old and the new cognizant agency for audit shall notify
the auditee, and, if known, the auditor of the reassignment. The cognizant
agency for audit shall:
(1) Provide technical audit advice and liaison to auditees and
auditors.
(2) Consider auditee requests for extensions to the report
21
it
he Department of Health and Human
Services.
16
0938 Filed 12-2-11;8:45 am]
and HMIS.Where applicable,HUD may affected activities to other eligible BILLING CODE 4210-67-P
also consider relevant information activities;
pertaining to the recipient's (v)Suspending disbursement of ESG
performance gained from other sources, funds for some or all activities; DEPARTMENT OF HOUSING AND
including citizen comments,complaint (vi)Reducing or terminating the URBAN DEVELOPMENT
determinations,and litigation.Reviews remaining grant of a subrecipient and
to determine compliance with specific reallocating those funds to other 24 CFR Parts 91,582,and 583
requirements of thispart will be subrecipients;and
q (vii)Making matching contributions (Docket No.FR-5333-F-02]
conducted as necessary,with or without before or as draws are made from the
prior notice to the recipient. RIN 2506-AC26
(2)If HUD determines preliminarily recipient's ESG grant.
that the recipient or one of its (2)HUD may change the method of Homeless Emergency Assistance and
subrecipients has not complied with an Payment to a reimbursement basis. Rapid Transition to Housing: Defining
ESG program requirement,HUD will y3)HUD may suspend payments to' Homeless
the extent HUD deems it necessary to
give the recipient notice of this preclude the further expenditure of AGENCY:Office of the Assistant
determination and an opportunity to funds for affected activities. Secretary for Community Planning and
demonstrate,within the time prescribed (4)HUD may remove the recipient . Development,HUD.
by HUD and on the basis of substantial from participation in reallocations of ACTION:Final rule.
facts and data,that the recipient has funds under subpart D of this part.
complied with Emergency Solutions (5)HUD may deny matching credit for SUMMARY:The Homeless Emergency
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
in a timely manner and in accordance with the requirements of this part .
(4) Provide technical advice and counsel to auditees and
auditors as requested.
(5) Issue a management decision on audit findings within six
months after receipt of the audit report and ensure that the recipient takes
appropriate and timely corrective action.
(6) Assign a person responsible for providing annual updates
of the compliance supplement to OMB.
(d) Pass-through entity responsibilities . A pass-through entity shall
perform the following for the Federal awards it makes:
(1) Identify Federal awards made by informing each
subrecipient of CFDA title and number, award name and number, award year, if
the award is R&D, and name of Federal agency. When some of this information
is not available, the pass-through entity shall provide the best information
available to describe the Federal award.
(2) Advise subrecipients of requirements imposed on them by
Federal laws, regulations, and the provisions of contracts or grant agreements
as well as any supplemental requirements imposed by the pass-through entity.
(3) Monitor the activities of subrecipients as necessary to
ensure that Federal awards are used for authorized purposes in compliance with
laws, regulations, and the provisions of contracts or grant agreements and
that performance goals are achieved.
(4) Ensure that subrecipients expending $300,000 ($500, 000 for
fiscal years ending after December 31, 2003) or more in Federal awards during
the subrecipient's fiscal year have met the audit requirements of this part
for that fiscal year.
(5) Issue a management decision on audit findings within six
months after receipt of the subrecipient's audit report and ensure that the
subrecipient takes appropriate and timely corrective action.
(6) Consider whether subrecipient audits necessitate
adjustment of the pass-through entity's own records.
(7) Require each subrecipient to permit the pass-through
entity and auditors to have access to the records and financial statements as
necessary for the pass-through entity to comply with this part.
§ .405 Management decision.
(a) General . The management decision shall clearly state whether or
not the audit finding is sustained, the reasons for the decision, and the
expected auditee action to repay disallowed costs, make financial adjustments,
or take other action. If the auditee has not completed corrective action, a
timetable for follow-up should be given. Prior to issuing the management
decision, the Federal agency or pass-through entity may request
additional information or documentation from the auditee, including a request
for auditor assurance related to the documentation, as a way of mitigating
disallowed costs. The management decision should describe any appeal process
available to the auditee.
(b) Federal agency. As provided in § .400(a) (7) , the cognizant
agency for audit shall be responsible for coordinating a management decision
for audit findings that affect the programs of more than one Federal agency.
23
g agency with cognizance for an auditee may reassign cognizance to
another Federal awarding agency which provides substantial direct funding and
agrees to be the cognizant agency for audit. Within 30 days after any
reassignment, both the old and the new cognizant agency for audit shall notify
the auditee, and, if known, the auditor of the reassignment. The cognizant
agency for audit shall:
(1) Provide technical audit advice and liaison to auditees and
auditors.
(2) Consider auditee requests for extensions to the report
21
it
he Department of Health and Human
Services.
16
0938 Filed 12-2-11;8:45 am]
and HMIS.Where applicable,HUD may affected activities to other eligible BILLING CODE 4210-67-P
also consider relevant information activities;
pertaining to the recipient's (v)Suspending disbursement of ESG
performance gained from other sources, funds for some or all activities; DEPARTMENT OF HOUSING AND
including citizen comments,complaint (vi)Reducing or terminating the URBAN DEVELOPMENT
determinations,and litigation.Reviews remaining grant of a subrecipient and
to determine compliance with specific reallocating those funds to other 24 CFR Parts 91,582,and 583
requirements of thispart will be subrecipients;and
q (vii)Making matching contributions (Docket No.FR-5333-F-02]
conducted as necessary,with or without before or as draws are made from the
prior notice to the recipient. RIN 2506-AC26
(2)If HUD determines preliminarily recipient's ESG grant.
that the recipient or one of its (2)HUD may change the method of Homeless Emergency Assistance and
subrecipients has not complied with an Payment to a reimbursement basis. Rapid Transition to Housing: Defining
ESG program requirement,HUD will y3)HUD may suspend payments to' Homeless
the extent HUD deems it necessary to
give the recipient notice of this preclude the further expenditure of AGENCY:Office of the Assistant
determination and an opportunity to funds for affected activities. Secretary for Community Planning and
demonstrate,within the time prescribed (4)HUD may remove the recipient . Development,HUD.
by HUD and on the basis of substantial from participation in reallocations of ACTION:Final rule.
facts and data,that the recipient has funds under subpart D of this part.
complied with Emergency Solutions (5)HUD may deny matching credit for SUMMARY:The Homeless Emergency
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
As provided in § .400(c) (5) , a Federal awarding agency is responsible for
issuing a management decision for findings that relate to Federal awards it
makes to recipients. Alternate arrangements may be made on a case-by-case
basis by agreement among the Federal agencies concerned.
(c) Pass-through entity. As provided in § .400(d) (5) , the pass-
through entity shall be responsible for making the management decision for
audit findings that relate to Federal awards it makes to subrecipients.
(d) Time requirements . The entity responsible for making the
management decision shall do so within six months of receipt of the audit
report. Corrective action should be initiated within six months after receipt
of the audit report and proceed as rapidly as possible.
(e) Reference numbers. Management decisions shall include the
reference numbers the auditor assigned to each audit finding in accordance
with § .510(c) .
Subpart E--Auditors
§_.500 Scope of audit.
(a) General. The audit shall be conducted in accordance with GAGAS.
The audit shall cover the entire operations of the auditee; or, at the option
of the auditee, such audit shall include a series of audits that cover
departments, agencies, and other organizational units which expended or
otherwise administered Federal awards during such fiscal year, provided that
each such audit shall encompass the financial statements and schedule of
expenditures of Federal awards for each such department, agency, and other
organizational unit, which shall be considered to be a non-Federal entity.
The financial statements and schedule of expenditures of Federal awards shall
be for the same fiscal year.
(b) Financial statements. The auditor shall determine whether the
financial statements of the auditee are presented fairly in all material
respects in conformity with generally accepted accounting principles. The
auditor shall also determine whether the schedule of expenditures of Federal
awards is presented fairly in all material respects in relation to the
auditee's financial statements taken as a whole.
(c) Internal control . (1) In addition to the requirements of GAGAS,
the auditor shall perform procedures to obtain an understanding of internal
control over Federal programs sufficient to plan the audit to support a low
assessed level of control risk for major programs.
(2) Except as provided in paragraph (c) (3) of this section,
the auditor shall :
(i) Plan the testing of internal control over major
programs to support a low assessed level of control risk for the assertions
relevant to the compliance requirements for each major program; and
(ii) Perform testing of internal control as planned in
paragraph (c) (2) (i) of this section.
(3) When internal control over some or all of the compliance
requirements for a major program are likely to be ineffective in preventing or
detecting noncompliance, the planning and performing of testing described in
paragraph (c) (2) of this section are not required for those compliance
requirements. However, the auditor shall report a significant deficiency
(including whether any such condition is a material weakness) in accordance
with § .510, assess the related control risk at the maximum, and consider
whether additional compliance tests are required because of ineffective
24
ison to auditees and
auditors.
(2) Consider auditee requests for extensions to the report
21
it
he Department of Health and Human
Services.
16
0938 Filed 12-2-11;8:45 am]
and HMIS.Where applicable,HUD may affected activities to other eligible BILLING CODE 4210-67-P
also consider relevant information activities;
pertaining to the recipient's (v)Suspending disbursement of ESG
performance gained from other sources, funds for some or all activities; DEPARTMENT OF HOUSING AND
including citizen comments,complaint (vi)Reducing or terminating the URBAN DEVELOPMENT
determinations,and litigation.Reviews remaining grant of a subrecipient and
to determine compliance with specific reallocating those funds to other 24 CFR Parts 91,582,and 583
requirements of thispart will be subrecipients;and
q (vii)Making matching contributions (Docket No.FR-5333-F-02]
conducted as necessary,with or without before or as draws are made from the
prior notice to the recipient. RIN 2506-AC26
(2)If HUD determines preliminarily recipient's ESG grant.
that the recipient or one of its (2)HUD may change the method of Homeless Emergency Assistance and
subrecipients has not complied with an Payment to a reimbursement basis. Rapid Transition to Housing: Defining
ESG program requirement,HUD will y3)HUD may suspend payments to' Homeless
the extent HUD deems it necessary to
give the recipient notice of this preclude the further expenditure of AGENCY:Office of the Assistant
determination and an opportunity to funds for affected activities. Secretary for Community Planning and
demonstrate,within the time prescribed (4)HUD may remove the recipient . Development,HUD.
by HUD and on the basis of substantial from participation in reallocations of ACTION:Final rule.
facts and data,that the recipient has funds under subpart D of this part.
complied with Emergency Solutions (5)HUD may deny matching credit for SUMMARY:The Homeless Emergency
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
• internal control.
(d) Compliance. (1) In addition to the requirements of GAGAS, the
auditor shall determine whether the auditee has complied with laws,
regulations, and the provisions of contracts or grant agreements that may have
a direct and material effect on each of its major programs.
(2) The principal compliance requirements applicable to most
Federal programs and the compliance requirements of the largest Federal
programs are included in the compliance supplement.
(3) For the compliance requirements related to Federal
programs contained in the compliance supplement, an audit of these compliance
requirements will meet the requirements of this part. Where there have been
changes to the compliance requirements and the changes are not reflected in
the compliance supplement, the auditor shall determine the current compliance
requirements and modify the audit procedures accordingly. For those Federal
programs not covered in the compliance supplement, the auditor should use the
types of compliance requirements contained in the compliance supplement as
guidance for identifying the types of compliance requirements to test, and
determine the requirements governing the Federal program by reviewing the
provisions of contracts and grant agreements and the laws and regulations
referred to in such contracts and grant agreements.
(4) The compliance testing shall include tests of transactions
and such other auditing procedures necessary to provide the auditor sufficient
evidence to support an opinion on compliance.
(e) Audit follow-up. The auditor shall follow-up on prior audit
findings, perform procedures to assess• the reasonableness of the summary
schedule of prior audit findings prepared by the auditee in accordance with
§ .315(b) , and report, as a current year audit finding, when the auditor
concludes that the summary schedule of prior audit findings materially
misrepresents the status of any prior audit finding. The auditor shall
perform audit follow-up procedures regardless of whether a prior audit finding
relates to a major program in the current year.
(f) Data Collection Form. As required in § .320(b) (3) , the auditor
shall complete and sign specified sections of the data collection form.
§ .505 Audit reporting.
The auditor's report (s) may be in the form of either combined or
separate reports and may be organized differently from the manner presented in
this section. The auditor's report (s) shall state that the audit was
conducted in accordance with this part and include the following:
(a) An opinion (or disclaimer of opinion) as to whether the financial
statements are presented fairly in all material respects in conformity with
generally accepted accounting principles and an opinion (or disclaimer of
opinion) as to whether the schedule of expenditures of Federal awards is
presented fairly in all material respects in relation to the financial
statements taken as a whole.
(b) A report on internal control related to the financial statements
and major programs. This report shall describe the scope of testing of
internal control and the results of the tests, and, where applicable, refer to
the separate schedule of findings and questioned costs described in paragraph
(d) of this section.
(c) A report on compliance with laws, regulations, and the provisions
of contracts or grant agreements, noncompliance with which could have a
25
ontrol risk at the maximum, and consider
whether additional compliance tests are required because of ineffective
24
ison to auditees and
auditors.
(2) Consider auditee requests for extensions to the report
21
it
he Department of Health and Human
Services.
16
0938 Filed 12-2-11;8:45 am]
and HMIS.Where applicable,HUD may affected activities to other eligible BILLING CODE 4210-67-P
also consider relevant information activities;
pertaining to the recipient's (v)Suspending disbursement of ESG
performance gained from other sources, funds for some or all activities; DEPARTMENT OF HOUSING AND
including citizen comments,complaint (vi)Reducing or terminating the URBAN DEVELOPMENT
determinations,and litigation.Reviews remaining grant of a subrecipient and
to determine compliance with specific reallocating those funds to other 24 CFR Parts 91,582,and 583
requirements of thispart will be subrecipients;and
q (vii)Making matching contributions (Docket No.FR-5333-F-02]
conducted as necessary,with or without before or as draws are made from the
prior notice to the recipient. RIN 2506-AC26
(2)If HUD determines preliminarily recipient's ESG grant.
that the recipient or one of its (2)HUD may change the method of Homeless Emergency Assistance and
subrecipients has not complied with an Payment to a reimbursement basis. Rapid Transition to Housing: Defining
ESG program requirement,HUD will y3)HUD may suspend payments to' Homeless
the extent HUD deems it necessary to
give the recipient notice of this preclude the further expenditure of AGENCY:Office of the Assistant
determination and an opportunity to funds for affected activities. Secretary for Community Planning and
demonstrate,within the time prescribed (4)HUD may remove the recipient . Development,HUD.
by HUD and on the basis of substantial from participation in reallocations of ACTION:Final rule.
facts and data,that the recipient has funds under subpart D of this part.
complied with Emergency Solutions (5)HUD may deny matching credit for SUMMARY:The Homeless Emergency
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
material effect on the financial statements. This report shall also include
an opinion (or disclaimer of opinion) as to whether the auditee complied with
laws, regulations, and the provisions of contracts or grant agreements which
could have a direct and material effect on each major program, and, where
applicable, refer to the separate schedule of findings and questioned costs
described in paragraph (d) of this section.
(d) A schedule of findings and questioned costs which shall include
the following three components:
(1) A summary of the auditor's results which shall include:
(i) The type of report the auditor issued on the
financial statements of the auditee (i.e. , unqualified opinion, qualified
opinion, adverse opinion, or disclaimer of opinion) ;
(ii) Where applicable, a statement that significant
deficiencies in internal control were disclosed by the audit of the financial
statements and whether any such conditions were material weaknesses;
(iii) A statement as to whether the audit disclosed any
noncompliance which is material to the financial statements of the auditee;
(iv) Where applicable, a statement that significant
deficiencies in internal control over major programs were disclosed by the audit
and whether any such conditions were material weaknesses;
(v) The type of report the auditor issued on compliance
for major programs (i.e. , unqualified opinion, qualified opinion, adverse
opinion, or disclaimer of opinion) ;
(vi) A statement as to whether the audit disclosed any
audit findings which the auditor is required to report under § .510(a) ;
(vii) An identification of major programs;
(viii)The dollar threshold used to distinguish between
Type A and Type B programs, as described in §_.520(b) ; and
(ix) A statement as to whether the auditee qualified as
a low-risk auditee under § .530.
(2) Findings relating to the financial statements which are
required to be reported in accordance with GAGAS.
(3) Findings and questioned costs for Federal awards which
shall include audit findings as defined in § .510 (a) .
(i) Audit findings (e.g. , internal control findings,
compliance findings, questioned costs, or fraud) which relate to the same
issue should be presented as a single audit finding. Where practical, audit
findings should be organized by Federal agency or pass-through entity.
(ii) Audit findings which relate to both the financial
statements and Federal awards, as reported under paragraphs (d) (2) and (d) (3)
of this section, respectively, should be reported in both sections of the
schedule. However, the reporting in one section of the schedule may be in
summary form with a reference to a detailed reporting in the other section of
the schedule.
§ .510 Audit findings.
26
o the financial statements
and major programs. This report shall describe the scope of testing of
internal control and the results of the tests, and, where applicable, refer to
the separate schedule of findings and questioned costs described in paragraph
(d) of this section.
(c) A report on compliance with laws, regulations, and the provisions
of contracts or grant agreements, noncompliance with which could have a
25
ontrol risk at the maximum, and consider
whether additional compliance tests are required because of ineffective
24
ison to auditees and
auditors.
(2) Consider auditee requests for extensions to the report
21
it
he Department of Health and Human
Services.
16
0938 Filed 12-2-11;8:45 am]
and HMIS.Where applicable,HUD may affected activities to other eligible BILLING CODE 4210-67-P
also consider relevant information activities;
pertaining to the recipient's (v)Suspending disbursement of ESG
performance gained from other sources, funds for some or all activities; DEPARTMENT OF HOUSING AND
including citizen comments,complaint (vi)Reducing or terminating the URBAN DEVELOPMENT
determinations,and litigation.Reviews remaining grant of a subrecipient and
to determine compliance with specific reallocating those funds to other 24 CFR Parts 91,582,and 583
requirements of thispart will be subrecipients;and
q (vii)Making matching contributions (Docket No.FR-5333-F-02]
conducted as necessary,with or without before or as draws are made from the
prior notice to the recipient. RIN 2506-AC26
(2)If HUD determines preliminarily recipient's ESG grant.
that the recipient or one of its (2)HUD may change the method of Homeless Emergency Assistance and
subrecipients has not complied with an Payment to a reimbursement basis. Rapid Transition to Housing: Defining
ESG program requirement,HUD will y3)HUD may suspend payments to' Homeless
the extent HUD deems it necessary to
give the recipient notice of this preclude the further expenditure of AGENCY:Office of the Assistant
determination and an opportunity to funds for affected activities. Secretary for Community Planning and
demonstrate,within the time prescribed (4)HUD may remove the recipient . Development,HUD.
by HUD and on the basis of substantial from participation in reallocations of ACTION:Final rule.
facts and data,that the recipient has funds under subpart D of this part.
complied with Emergency Solutions (5)HUD may deny matching credit for SUMMARY:The Homeless Emergency
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
(a) Audit findings reported. The auditor shall report the following
as audit findings in a schedule of findings and questioned costs:
(1) Significant deficiencies in internal control over major
programs. The auditor's determination of whether a deficiency in internal
control is a significant deficieicny for the purpose of reporting an audit
finding is in relation to a type of compliance requirement for a major program
or an audit objective identified in the compliance supplement. The auditor
shall identify significant deficiencies which are individually or cumulatively
material weaknesses.
(2) Material noncompliance with the provisions of laws,
regulations, contracts, or grant agreements related to a major program. The
auditor's determination of whether a noncompliance with the provisions of
laws, regulations, contracts, or grant agreements is material for the purpose
of reporting an audit finding is in relation to a type of compliance
requirement for a major program or an audit objective identified in the
compliance supplement.
(3) Known questioned costs which are greater than $10, 000 for
a type of compliance requirement for a major program. Known questioned costs
are those specifically identified by the auditor. In evaluating the effect of
questioned costs on the opinion on compliance, the auditor considers the best
estimate of total costs questioned (likely questioned costs) , not just the
questioned costs specifically identified (known questioned costs) . The
auditor shall also report known questioned costs when likely questioned costs
are greater than $10, 000 for a type of compliance requirement for a major
program. In reporting questioned costs, the auditor shall include information
to provide proper perspective for judging the prevalence and consequences of
the questioned costs.
(4) Known questioned costs which are greater than $10, 000 for
a Federal program which is not audited as a major program. Except for audit
follow-up, the auditor is not required under this part to perform audit
procedures for such a Federal program; therefore, the auditor will normally
not find questioned costs for a program which is not audited as a major
program. However, if the auditor does become aware of questioned costs for a
Federal program which is not audited as a major program (e.g. , as part of
audit follow-up or other audit procedures) and the known questioned costs are
greater than $10, 000, then the auditor shall report this as an audit finding.
(5) The circumstances concerning why the auditor's report on
compliance for major programs is other than an unqualified opinion, unless
such circumstances are otherwise reported as audit findings in the schedule of
findings and questioned costs for Federal awards.
(6) Known fraud affecting a Federal award, unless such fraud
is otherwise reported as an audit finding in the schedule of findings and
questioned costs for Federal awards. This paragraph does not require the
auditor to make an additional reporting when the auditor confirms that the
fraud was reported outside of the auditor's reports under the direct reporting
requirements of GAGAS.
(7) Instances where the results of audit follow-up procedures
disclosed that the summary schedule of prior audit findings prepared by the
auditee in accordance with § .315(b) materially misrepresents the status of
any prior audit finding.
(b) Audit finding detail . Audit findings shall be presented in
sufficient detail for the auditee to prepare a corrective action plan and take
corrective action and for Federal agencies and pass-through entities to arrive
at a management decision. The following specific information shall be
27
may affected activities to other eligible BILLING CODE 4210-67-P
also consider relevant information activities;
pertaining to the recipient's (v)Suspending disbursement of ESG
performance gained from other sources, funds for some or all activities; DEPARTMENT OF HOUSING AND
including citizen comments,complaint (vi)Reducing or terminating the URBAN DEVELOPMENT
determinations,and litigation.Reviews remaining grant of a subrecipient and
to determine compliance with specific reallocating those funds to other 24 CFR Parts 91,582,and 583
requirements of thispart will be subrecipients;and
q (vii)Making matching contributions (Docket No.FR-5333-F-02]
conducted as necessary,with or without before or as draws are made from the
prior notice to the recipient. RIN 2506-AC26
(2)If HUD determines preliminarily recipient's ESG grant.
that the recipient or one of its (2)HUD may change the method of Homeless Emergency Assistance and
subrecipients has not complied with an Payment to a reimbursement basis. Rapid Transition to Housing: Defining
ESG program requirement,HUD will y3)HUD may suspend payments to' Homeless
the extent HUD deems it necessary to
give the recipient notice of this preclude the further expenditure of AGENCY:Office of the Assistant
determination and an opportunity to funds for affected activities. Secretary for Community Planning and
demonstrate,within the time prescribed (4)HUD may remove the recipient . Development,HUD.
by HUD and on the basis of substantial from participation in reallocations of ACTION:Final rule.
facts and data,that the recipient has funds under subpart D of this part.
complied with Emergency Solutions (5)HUD may deny matching credit for SUMMARY:The Homeless Emergency
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
included, as applicable, in audit findings:
(1) Federal program and specific Federal award identification
including the CFDA title and number, Federal award number and year, name of
Federal agency, and name of the applicable pass-through entity. When
information, such as the CFDA title and number or Federal award number, is not
available, the auditor shall provide the best information available to
describe the Federal award.
(2) The criteria or specific requirement upon which the audit
finding is based, including statutory, regulatory, or other citation.
(3) The condition found, including facts that support the
deficiency identified in the audit finding.
(4) Identification of questioned costs and how they were
computed.
(5) Information to provide proper perspective for judging the
prevalence and consequences of the audit findings, such as whether the audit
findings represent an isolated instance or a systemic problem. Where
appropriate, instances identified shall be' related to the universe and the
number of cases examined and be quantified in terms of dollar value.
(6) The possible asserted effect to provide sufficient
information to the auditee and Federal agency, or pass-through entity in the
case of a subrecipient, to permit them to determine the cause and effect to
facilitate prompt and proper corrective action.
(7) Recommendations to prevent future occurrences of the
deficiency identified in the audit finding.
(8) Views of responsible officials of the auditee when there
is disagreement with the audit findings, to the extent practical.
(c) Reference numbers. Each audit finding in the schedule of findings
and questioned costs shall include a reference number to allow for easy
referencing of the audit findings during follow-up.
§ .515 Audit working papers.
(a) Retention of working papers . The auditor shall retain working
papers and reports for a minimum of three years after the date of issuance of
the auditor's report (s) to the auditee, unless the auditor is notified in
writing by the cognizant agency for audit, oversight agency for audit, or
pass-through entity to extend the retention period. When the auditor is aware
that the Federal awarding agency, pass-through entity, or auditee is
contesting an audit finding, the auditor shall contact the parties contesting
the audit finding for guidance prior to destruction of the working papers and
reports.
(b) Access to working papers. Audit working papers shall be made
available upon request to the cognizant or oversight agency for audit or its
designee, a Federal agency providing direct or indirect funding, or GAO at the
completion of the audit, as part of a quality review, to resolve audit
findings, or to carry out oversight responsibilities consistent with the
purposes of this part. Access to working papers includes the right of Federal
agencies to obtain copies of working papers, as is reasonable and necessary.
28
reported outside of the auditor's reports under the direct reporting
requirements of GAGAS.
(7) Instances where the results of audit follow-up procedures
disclosed that the summary schedule of prior audit findings prepared by the
auditee in accordance with § .315(b) materially misrepresents the status of
any prior audit finding.
(b) Audit finding detail . Audit findings shall be presented in
sufficient detail for the auditee to prepare a corrective action plan and take
corrective action and for Federal agencies and pass-through entities to arrive
at a management decision. The following specific information shall be
27
may affected activities to other eligible BILLING CODE 4210-67-P
also consider relevant information activities;
pertaining to the recipient's (v)Suspending disbursement of ESG
performance gained from other sources, funds for some or all activities; DEPARTMENT OF HOUSING AND
including citizen comments,complaint (vi)Reducing or terminating the URBAN DEVELOPMENT
determinations,and litigation.Reviews remaining grant of a subrecipient and
to determine compliance with specific reallocating those funds to other 24 CFR Parts 91,582,and 583
requirements of thispart will be subrecipients;and
q (vii)Making matching contributions (Docket No.FR-5333-F-02]
conducted as necessary,with or without before or as draws are made from the
prior notice to the recipient. RIN 2506-AC26
(2)If HUD determines preliminarily recipient's ESG grant.
that the recipient or one of its (2)HUD may change the method of Homeless Emergency Assistance and
subrecipients has not complied with an Payment to a reimbursement basis. Rapid Transition to Housing: Defining
ESG program requirement,HUD will y3)HUD may suspend payments to' Homeless
the extent HUD deems it necessary to
give the recipient notice of this preclude the further expenditure of AGENCY:Office of the Assistant
determination and an opportunity to funds for affected activities. Secretary for Community Planning and
demonstrate,within the time prescribed (4)HUD may remove the recipient . Development,HUD.
by HUD and on the basis of substantial from participation in reallocations of ACTION:Final rule.
facts and data,that the recipient has funds under subpart D of this part.
complied with Emergency Solutions (5)HUD may deny matching credit for SUMMARY:The Homeless Emergency
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
§ .520 Major program determination.
(a) General. The auditor shall use a risk-based approach to determine
which Federal programs are major programs. This risk-based approach shall
include consideration of: Current and prior audit experience, oversight by
Federal agencies and pass-through entities, and the inherent risk of the
Federal program. The process in paragraphs (b) through (i) of this section
shall be followed.
(b) Step 1 . (1) The auditor shall identify the larger Federal
programs, which shall be labeled Type A programs. Type A programs are defined
as Federal programs with Federal awards expended during the audit period
exceeding the larger of:
(i) $300, 000 or three percent ( .03) of total Federal
awards expended in the case of an auditee for which total Federal awards
expended equal or exceed $300,000 but are less than or equal to $100 million.
(ii) $3 million or three-tenths of one percent ( .003) of
total Federal awards expended in the case of an auditee for which total
Federal awards expended exceed $100 million but are less than or equal to $10
billion.
(iii) $30 million or 15 hundredths of one percent ( .0015)
of total Federal awards expended in the case of an auditee for which total
Federal awards expended exceed $10 billion.
(2) Federal programs not labeled Type A under paragraph (b) (1)
of this section shall be labeled Type B programs.
(3) The inclusion of large loan and loan guarantees (loans)
should not result in the exclusion of other programs as Type A programs . When
a Federal program providing loans significantly affects the number or size of
Type A programs, the auditor shall consider this Federal program as a Type A
program and exclude its values in determining other Type A programs.
(4) For biennial audits permitted under 5 .220, the
determination of Type A and Type B programs shall be based upon the Federal
awards expended during the two-year period.
(c) Step 2 . (1) The auditor shall identify Type A programs which are
low-risk. For a Type A program to be considered low-risk, it shall have been
audited as a major program in at least one of the two most recent audit
periods (in the most recent audit period in the case of a biennial audit) ,
and, in the most recent audit period, it shall have had no audit findings
under § .510(a) . However, the auditor may use judgment and consider that
audit findings from questioned costs under 5 .510(a) (3) and § .510(a) (4) ,
fraud under 5 .510(a) (6) , and audit follow-up for the summary schedule of
prior audit findings under 5 .510(a) (7) do not preclude the Type A program
from being low-risk. The auditor shall consider: the criteria in 5 .525(c) ,
5 .525(d) (1) , 5 .525(d) (2) , and 5 .525(d) (3) ; the results of audit
follow-up; whether any changes in personnel or systems affecting a Type A
program have significantly increased risk; and apply professional judgment in
determining whether a Type A program is low-risk.
(2) Notwithstanding paragraph (c) (1) of this section, OMB may
approve a Federal awarding agency's request that a Type A program at certain
recipients may not be considered low-risk. For example, it may be necessary
for a large Type A program to be audited as major each year at particular
recipients to allow the Federal agency to comply with the Government
Management Reform Act of 1994 (31 U.S.C. 3515) . The Federal agency shall
notify the recipient and, if known, the auditor at least 180 days prior to the
29
shall be presented in
sufficient detail for the auditee to prepare a corrective action plan and take
corrective action and for Federal agencies and pass-through entities to arrive
at a management decision. The following specific information shall be
27
may affected activities to other eligible BILLING CODE 4210-67-P
also consider relevant information activities;
pertaining to the recipient's (v)Suspending disbursement of ESG
performance gained from other sources, funds for some or all activities; DEPARTMENT OF HOUSING AND
including citizen comments,complaint (vi)Reducing or terminating the URBAN DEVELOPMENT
determinations,and litigation.Reviews remaining grant of a subrecipient and
to determine compliance with specific reallocating those funds to other 24 CFR Parts 91,582,and 583
requirements of thispart will be subrecipients;and
q (vii)Making matching contributions (Docket No.FR-5333-F-02]
conducted as necessary,with or without before or as draws are made from the
prior notice to the recipient. RIN 2506-AC26
(2)If HUD determines preliminarily recipient's ESG grant.
that the recipient or one of its (2)HUD may change the method of Homeless Emergency Assistance and
subrecipients has not complied with an Payment to a reimbursement basis. Rapid Transition to Housing: Defining
ESG program requirement,HUD will y3)HUD may suspend payments to' Homeless
the extent HUD deems it necessary to
give the recipient notice of this preclude the further expenditure of AGENCY:Office of the Assistant
determination and an opportunity to funds for affected activities. Secretary for Community Planning and
demonstrate,within the time prescribed (4)HUD may remove the recipient . Development,HUD.
by HUD and on the basis of substantial from participation in reallocations of ACTION:Final rule.
facts and data,that the recipient has funds under subpart D of this part.
complied with Emergency Solutions (5)HUD may deny matching credit for SUMMARY:The Homeless Emergency
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
end of the fiscal year to be audited of OMB's approval.
(d) Step 3 . (1) The auditor shall identify Type B programs which are
high-risk using professional judgment and the criteria in § .525. However,
should the auditor select Option 2 under Step 4 (paragraph (e) (2) (i) (B) of
this section) , the auditor is not required to identify more high-risk Type B
programs than the number of low-risk Type A programs. Except for known
significant deficiencies in internal control or compliance problems as discussed
in § .525(b) (1) , § .525(b) (2) , and § .525(c) (1) , a single criteria in
§ .525 would seldom cause a Type B program to be considered high-risk.
(2) The auditor is not expected to perform risk assessments on
relatively small Federal programs. Therefore, the auditor is only required to
perform risk assessments on Type B programs that exceed the larger of:
(i) $100,000 or three-tenths of one percent (.003) of
total Federal awards expended when the auditee has less than or equal to $100
million in total Federal awards expended.
(ii) $300, 000 or three-hundredths of one percent ( .0003)
of total Federal awards expended when the auditee has more than $100 million
in total Federal awards expended.
(e) Step 4. At a minimum, the auditor shall audit all of the
following as major programs:
(1) All Type A programs, except the auditor may exclude any
Type A programs identified as low-risk under Step 2 (paragraph (c) (1) of this
section) .
(2) (i) High-risk Type B programs as identified under
either of the following two options:
(A) Option 1. At least one half of the Type B
programs identified as high-risk under Step 3 (paragraph (d) of this section) ,
except this paragraph (e) (2) (i) (A) does not require the auditor to audit more
high-risk Type B programs than the number of low-risk Type A programs
identified as low-risk under Step 2.
(B) Option 2. One high-risk Type B program for
each Type A program identified as low-risk under Step 2 .
(ii) When identifying which high-risk Type B programs to
audit as major under either Option 1 or 2 in paragraph (e) (2) (i) (A) or (B) ,
the auditor is encouraged to use an approach which provides an opportunity for
different high-risk Type B programs to be audited as major over a period of
time.
(3) Such additional programs as may be necessary to comply
with the percentage of coverage rule discussed in paragraph (f) of this
section. This paragraph (e) (3) may require the auditor to audit more programs
as major than the number of Type A programs.
(f) Percentage of coverage rule. The auditor shall audit as major
programs Federal programs with Federal awards expended that, in the aggregate,
encompass at least 50 percent of total Federal awards expended. If the
auditee meets the criteria in § .530 for a low-risk auditee, the auditor
need only audit as major programs Federal programs with Federal awards
expended that, in the aggregate, encompass at least 25 percent of total
Federal awards expended.
(g) Documentation of risk. The auditor shall document in the working
30
ogram at certain
recipients may not be considered low-risk. For example, it may be necessary
for a large Type A program to be audited as major each year at particular
recipients to allow the Federal agency to comply with the Government
Management Reform Act of 1994 (31 U.S.C. 3515) . The Federal agency shall
notify the recipient and, if known, the auditor at least 180 days prior to the
29
shall be presented in
sufficient detail for the auditee to prepare a corrective action plan and take
corrective action and for Federal agencies and pass-through entities to arrive
at a management decision. The following specific information shall be
27
may affected activities to other eligible BILLING CODE 4210-67-P
also consider relevant information activities;
pertaining to the recipient's (v)Suspending disbursement of ESG
performance gained from other sources, funds for some or all activities; DEPARTMENT OF HOUSING AND
including citizen comments,complaint (vi)Reducing or terminating the URBAN DEVELOPMENT
determinations,and litigation.Reviews remaining grant of a subrecipient and
to determine compliance with specific reallocating those funds to other 24 CFR Parts 91,582,and 583
requirements of thispart will be subrecipients;and
q (vii)Making matching contributions (Docket No.FR-5333-F-02]
conducted as necessary,with or without before or as draws are made from the
prior notice to the recipient. RIN 2506-AC26
(2)If HUD determines preliminarily recipient's ESG grant.
that the recipient or one of its (2)HUD may change the method of Homeless Emergency Assistance and
subrecipients has not complied with an Payment to a reimbursement basis. Rapid Transition to Housing: Defining
ESG program requirement,HUD will y3)HUD may suspend payments to' Homeless
the extent HUD deems it necessary to
give the recipient notice of this preclude the further expenditure of AGENCY:Office of the Assistant
determination and an opportunity to funds for affected activities. Secretary for Community Planning and
demonstrate,within the time prescribed (4)HUD may remove the recipient . Development,HUD.
by HUD and on the basis of substantial from participation in reallocations of ACTION:Final rule.
facts and data,that the recipient has funds under subpart D of this part.
complied with Emergency Solutions (5)HUD may deny matching credit for SUMMARY:The Homeless Emergency
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
papers the risk analysis process used in determining major programs.
(h) Auditor's iudgment . When the major program determination was
performed and documented in accordance with this part, the auditor's judgment
in applying the risk-based approach to determine major programs shall be
presumed correct. Challenges by Federal agencies and pass-through entities
shall only be for clearly improper use of the guidance in this part. However,
Federal agencies and pass-through entities may provide auditors guidance about
the risk of a particular Federal program and the auditor shall consider this
guidance in determining major programs in audits not yet completed.
(i) Deviation from use of risk criteria . For first-year audits, the
auditor may elect to determine major programs as all Type A programs plus any
Type B programs as necessary to meet the percentage of coverage rule discussed
in paragraph (f) of this section. Under this option, the auditor would not be
required to perform the procedures discussed in paragraphs (c) , (d) , and (e)
of this section.
(1) A first-year audit is the first year the entity is audited
under this part or the first year of a change of auditors.
(2) To ensure that a frequent change of auditors would not
preclude audit of high-risk Type B programs, this election for first-year
audits may not be used by an auditee more than once in every three years.
§ .525 Criteria for Federal program risk.
(a) General. The auditor's determination should be based on an
overall evaluation of the risk of noncompliance occurring which could be
material to the Federal program. The auditor shall use auditor judgment and
consider criteria, such as described in paragraphs (b) , (c) , and (d) of this
section, to identify risk in Federal programs. Also, as part of the risk
analysis, the auditor may wish to discuss a particular Federal program with
auditee management and the Federal agency or pass-through entity.
(b) Current and prior audit experience . (1) Weaknesses in internal
control over Federal programs would indicate higher risk. Consideration
should be given to the control environment over Federal programs and such
factors as the expectation of management's adherence to applicable laws and
regulations and the provisions of contracts and grant agreements and the
competence and experience of personnel who administer the Federal programs.
(i) A Federal program administered under multiple
internal control structures may have higher risk. When assessing risk in a
large single audit, the auditor shall consider whether weaknesses are isolated
in a single operating unit (e.g. , one college campus) or pervasive throughout
the entity.
(ii) When significant parts of a Federal program are
passed through to subrecipients, a weak system for monitoring subrecipients
would indicate higher risk.
(iii) The extent to which computer processing is used to
administer Federal programs, as well as the complexity of that processing,
should be considered by the auditor in assessing risk. New and recently
modified computer systems may also indicate risk.
(2) Prior audit findings would indicate higher risk,
particularly when the situations identified in the audit findings could have a
significant impact on a Federal program or have not been corrected.
(3) Federal programs not recently audited as major programs
31
notify the recipient and, if known, the auditor at least 180 days prior to the
29
shall be presented in
sufficient detail for the auditee to prepare a corrective action plan and take
corrective action and for Federal agencies and pass-through entities to arrive
at a management decision. The following specific information shall be
27
may affected activities to other eligible BILLING CODE 4210-67-P
also consider relevant information activities;
pertaining to the recipient's (v)Suspending disbursement of ESG
performance gained from other sources, funds for some or all activities; DEPARTMENT OF HOUSING AND
including citizen comments,complaint (vi)Reducing or terminating the URBAN DEVELOPMENT
determinations,and litigation.Reviews remaining grant of a subrecipient and
to determine compliance with specific reallocating those funds to other 24 CFR Parts 91,582,and 583
requirements of thispart will be subrecipients;and
q (vii)Making matching contributions (Docket No.FR-5333-F-02]
conducted as necessary,with or without before or as draws are made from the
prior notice to the recipient. RIN 2506-AC26
(2)If HUD determines preliminarily recipient's ESG grant.
that the recipient or one of its (2)HUD may change the method of Homeless Emergency Assistance and
subrecipients has not complied with an Payment to a reimbursement basis. Rapid Transition to Housing: Defining
ESG program requirement,HUD will y3)HUD may suspend payments to' Homeless
the extent HUD deems it necessary to
give the recipient notice of this preclude the further expenditure of AGENCY:Office of the Assistant
determination and an opportunity to funds for affected activities. Secretary for Community Planning and
demonstrate,within the time prescribed (4)HUD may remove the recipient . Development,HUD.
by HUD and on the basis of substantial from participation in reallocations of ACTION:Final rule.
facts and data,that the recipient has funds under subpart D of this part.
complied with Emergency Solutions (5)HUD may deny matching credit for SUMMARY:The Homeless Emergency
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
may be of higher risk than Federal programs recently audited as major programs
without audit findings.
(c) Oversight exercised by Federal agencies and pass-through entities .
(1) Oversight exercised by Federal agencies or pass-through entities could
indicate risk. For example, recent monitoring or other reviews performed by
an oversight entity which disclosed no significant problems would indicate
lower risk. However, monitoring which disclosed significant problems would
indicate higher risk.
(2) Federal agencies, with the concurrence of OMB, may
identify Federal programs which are higher risk. OMB plans to provide this
identification in the compliance supplement.
(d) Inherent risk of the Federal program. (1) The nature of a
Federal program may indicate risk. Consideration should be given to the
complexity of the program and the extent to which the Federal program
contracts for goods and services. For example, Federal programs that disburse
funds through third party contracts or have eligibility criteria may be of
higher risk. Federal programs primarily involving staff payroll costs may
have a high-risk for time and effort reporting, but otherwise be at low-risk.
(2) The phase of a Federal program in its life cycle at the
Federal agency may indicate risk. For example, a new Federal program with new
or interim regulations may have higher risk than an established program with
time-tested regulations. Also, significant changes in Federal programs, laws,
regulations, or the provisions of contracts or grant agreements may increase
risk.
(3) The phase of a Federal program in its life cycle at the
auditee may indicate risk. For example, during the first and last years that
an auditee participates in a Federal program, the risk may be higher due to
start-up or closeout of program activities and staff.
(4) Type B programs with larger Federal awards expended would
be of higher risk than programs with substantially smaller Federal awards.
expended.
§ .530 Criteria for a low-risk auditee.
An auditee which meets all of the following conditions for each of the
preceding two years (or, in the case of biennial audits, preceding two audit
periods) shall qualify as a low-risk auditee and be eligible for reduced audit
coverage in accordance with § .520:
(a) Single audits were performed on an annual basis in accordance with
the provisions of this part. A non-Federal entity that has biennial audits
does not qualify as a low-risk auditee, unless agreed to in advance by the
cognizant or oversight agency for audit.
(b) The auditor's opinions on the financial statements and the
schedule of expenditures of Federal awards were unqualified. However, the
cognizant or oversight agency for audit may judge that an opinion
qualification does not affect the management of Federal awards and provide a
waiver.
(c) There were no deficiencies in internal control which were
identified as material weaknesses under the requirements of GAGAS. However,
the cognizant or oversight agency for audit may judge that any identified
material weaknesses do not affect the management of Federal awards and provide
a waiver.
32
udit findings would indicate higher risk,
particularly when the situations identified in the audit findings could have a
significant impact on a Federal program or have not been corrected.
(3) Federal programs not recently audited as major programs
31
notify the recipient and, if known, the auditor at least 180 days prior to the
29
shall be presented in
sufficient detail for the auditee to prepare a corrective action plan and take
corrective action and for Federal agencies and pass-through entities to arrive
at a management decision. The following specific information shall be
27
may affected activities to other eligible BILLING CODE 4210-67-P
also consider relevant information activities;
pertaining to the recipient's (v)Suspending disbursement of ESG
performance gained from other sources, funds for some or all activities; DEPARTMENT OF HOUSING AND
including citizen comments,complaint (vi)Reducing or terminating the URBAN DEVELOPMENT
determinations,and litigation.Reviews remaining grant of a subrecipient and
to determine compliance with specific reallocating those funds to other 24 CFR Parts 91,582,and 583
requirements of thispart will be subrecipients;and
q (vii)Making matching contributions (Docket No.FR-5333-F-02]
conducted as necessary,with or without before or as draws are made from the
prior notice to the recipient. RIN 2506-AC26
(2)If HUD determines preliminarily recipient's ESG grant.
that the recipient or one of its (2)HUD may change the method of Homeless Emergency Assistance and
subrecipients has not complied with an Payment to a reimbursement basis. Rapid Transition to Housing: Defining
ESG program requirement,HUD will y3)HUD may suspend payments to' Homeless
the extent HUD deems it necessary to
give the recipient notice of this preclude the further expenditure of AGENCY:Office of the Assistant
determination and an opportunity to funds for affected activities. Secretary for Community Planning and
demonstrate,within the time prescribed (4)HUD may remove the recipient . Development,HUD.
by HUD and on the basis of substantial from participation in reallocations of ACTION:Final rule.
facts and data,that the recipient has funds under subpart D of this part.
complied with Emergency Solutions (5)HUD may deny matching credit for SUMMARY:The Homeless Emergency
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
(d) None of the Federal programs had audit findings from any of the
following in either of the preceding two years (or, in the case of biennial
audits, preceding two audit periods) in which they were classified as Type A
programs:
(1) Internal control deficiencies which were identified as.
material weaknesses;
(2) Noncompliance with the provisions of laws, regulations,
contracts, or grant agreements which have a material effect on the Type A
program; or
(3) Known or likely questioned costs that exceed five percent
of the total Federal awards expended for a Type A program during the year.
Appendix A to Part - Data Collection Form (Form SF-SAC)
[insert SF-SAC after finalized)
Appendix B to Part _ - Circular A-133 Compliance Supplement
Note: Provisional OMB Circular A-133 Compliance Supplement is available
from the Office of Administration, Publications Office, room 2200, New
Executive Office Building, Washington, DC 20503 .
33
or have eligibility criteria may be of
higher risk. Federal programs primarily involving staff payroll costs may
have a high-risk for time and effort reporting, but otherwise be at low-risk.
(2) The phase of a Federal program in its life cycle at the
Federal agency may indicate risk. For example, a new Federal program with new
or interim regulations may have higher risk than an established program with
time-tested regulations. Also, significant changes in Federal programs, laws,
regulations, or the provisions of contracts or grant agreements may increase
risk.
(3) The phase of a Federal program in its life cycle at the
auditee may indicate risk. For example, during the first and last years that
an auditee participates in a Federal program, the risk may be higher due to
start-up or closeout of program activities and staff.
(4) Type B programs with larger Federal awards expended would
be of higher risk than programs with substantially smaller Federal awards.
expended.
§ .530 Criteria for a low-risk auditee.
An auditee which meets all of the following conditions for each of the
preceding two years (or, in the case of biennial audits, preceding two audit
periods) shall qualify as a low-risk auditee and be eligible for reduced audit
coverage in accordance with § .520:
(a) Single audits were performed on an annual basis in accordance with
the provisions of this part. A non-Federal entity that has biennial audits
does not qualify as a low-risk auditee, unless agreed to in advance by the
cognizant or oversight agency for audit.
(b) The auditor's opinions on the financial statements and the
schedule of expenditures of Federal awards were unqualified. However, the
cognizant or oversight agency for audit may judge that an opinion
qualification does not affect the management of Federal awards and provide a
waiver.
(c) There were no deficiencies in internal control which were
identified as material weaknesses under the requirements of GAGAS. However,
the cognizant or oversight agency for audit may judge that any identified
material weaknesses do not affect the management of Federal awards and provide
a waiver.
32
udit findings would indicate higher risk,
particularly when the situations identified in the audit findings could have a
significant impact on a Federal program or have not been corrected.
(3) Federal programs not recently audited as major programs
31
notify the recipient and, if known, the auditor at least 180 days prior to the
29
shall be presented in
sufficient detail for the auditee to prepare a corrective action plan and take
corrective action and for Federal agencies and pass-through entities to arrive
at a management decision. The following specific information shall be
27
may affected activities to other eligible BILLING CODE 4210-67-P
also consider relevant information activities;
pertaining to the recipient's (v)Suspending disbursement of ESG
performance gained from other sources, funds for some or all activities; DEPARTMENT OF HOUSING AND
including citizen comments,complaint (vi)Reducing or terminating the URBAN DEVELOPMENT
determinations,and litigation.Reviews remaining grant of a subrecipient and
to determine compliance with specific reallocating those funds to other 24 CFR Parts 91,582,and 583
requirements of thispart will be subrecipients;and
q (vii)Making matching contributions (Docket No.FR-5333-F-02]
conducted as necessary,with or without before or as draws are made from the
prior notice to the recipient. RIN 2506-AC26
(2)If HUD determines preliminarily recipient's ESG grant.
that the recipient or one of its (2)HUD may change the method of Homeless Emergency Assistance and
subrecipients has not complied with an Payment to a reimbursement basis. Rapid Transition to Housing: Defining
ESG program requirement,HUD will y3)HUD may suspend payments to' Homeless
the extent HUD deems it necessary to
give the recipient notice of this preclude the further expenditure of AGENCY:Office of the Assistant
determination and an opportunity to funds for affected activities. Secretary for Community Planning and
demonstrate,within the time prescribed (4)HUD may remove the recipient . Development,HUD.
by HUD and on the basis of substantial from participation in reallocations of ACTION:Final rule.
facts and data,that the recipient has funds under subpart D of this part.
complied with Emergency Solutions (5)HUD may deny matching credit for SUMMARY:The Homeless Emergency
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
C*. 1 bai° I--
EQUAL EMPLOYMENT OPPORTUNITY CLAUSE
During the performance of this Contract, the Contractor agrees as follows:
(1) The Contractor and its subcontractors shall not discriminate against any employee
or applicant for employment because of race, religion, color, sex, age, sexual
orientation, gender identity, national origin, disability or familial status. As used
herein, the work "treated" shall mean and include, without limitation, the
following: Recruited, whether by advertising or by other means; compensated;
selected for training, including apprenticeship; promoted; upgraded; demoted;
downgraded; transferred; laid off; and terminated. The Contractor agrees to and
shall post in conspicuous places, available to employees and applicants for
_employment, notices to be provided by the contracting officers setting forth the
provisions of this nondiscrimination clause.
(2) The Contractor and its subcontractors shall, in all solicitations or advertisements
for employees placed by or on behalf of the Contractor, state that all qualified
applicants will receive consideration for employment without regard to race,
religion, color, sexual orientation, gender identity, sex, national origin, age,
disability or familial status.
(3) The Contractor and its subcontractors shall send to each representative of workers
with which he has a collective bargaining agreement or other contract or
understanding a notice advising the labor union or worker's representative of the
Contractor's commitments under the equal employment opportunity clause of the
City and shall post copies of the notice in conspicuous places available to
employees and applicants for employment.
(4) The Contractor and its subcontractors shall furnish to the City's Human Rights
and Relations Contract Compliance Officer all federal forms containing the
information and reports required by the federal government for federal contracts
under federal rules and regulations, including the information required by Omaha
Municipal Code Sections 10-192 to 10-194, inclusive, and shall permit reasonable
access to his records. Records accessible to the Human Rights and Relations
Contract Compliance Officer shall be those which are related to Paragraphs (1)
through (7) of this Exhibit and only after reasonable notice is given to the
Contractor. The purpose for this provision is to provide for investigation to
ascertain compliance with the program provided for herein.
(5) The Contractor and its subcontractors shall take such actions with respect to any
subcontractor as the City may direct as a means of enforcing the provisions of
Paragraphs (1) through (7) herein, including penalties and sanctions for
noncompliance; however, in the event the Contractor becomes involved in or is
threatened with litigation as the result of such directions by the City, the City will
enter into such litigation as is necessary to protect the interests of the City and to
Revised and approved 5/23/2012
ts of GAGAS. However,
the cognizant or oversight agency for audit may judge that any identified
material weaknesses do not affect the management of Federal awards and provide
a waiver.
32
udit findings would indicate higher risk,
particularly when the situations identified in the audit findings could have a
significant impact on a Federal program or have not been corrected.
(3) Federal programs not recently audited as major programs
31
notify the recipient and, if known, the auditor at least 180 days prior to the
29
shall be presented in
sufficient detail for the auditee to prepare a corrective action plan and take
corrective action and for Federal agencies and pass-through entities to arrive
at a management decision. The following specific information shall be
27
may affected activities to other eligible BILLING CODE 4210-67-P
also consider relevant information activities;
pertaining to the recipient's (v)Suspending disbursement of ESG
performance gained from other sources, funds for some or all activities; DEPARTMENT OF HOUSING AND
including citizen comments,complaint (vi)Reducing or terminating the URBAN DEVELOPMENT
determinations,and litigation.Reviews remaining grant of a subrecipient and
to determine compliance with specific reallocating those funds to other 24 CFR Parts 91,582,and 583
requirements of thispart will be subrecipients;and
q (vii)Making matching contributions (Docket No.FR-5333-F-02]
conducted as necessary,with or without before or as draws are made from the
prior notice to the recipient. RIN 2506-AC26
(2)If HUD determines preliminarily recipient's ESG grant.
that the recipient or one of its (2)HUD may change the method of Homeless Emergency Assistance and
subrecipients has not complied with an Payment to a reimbursement basis. Rapid Transition to Housing: Defining
ESG program requirement,HUD will y3)HUD may suspend payments to' Homeless
the extent HUD deems it necessary to
give the recipient notice of this preclude the further expenditure of AGENCY:Office of the Assistant
determination and an opportunity to funds for affected activities. Secretary for Community Planning and
demonstrate,within the time prescribed (4)HUD may remove the recipient . Development,HUD.
by HUD and on the basis of substantial from participation in reallocations of ACTION:Final rule.
facts and data,that the recipient has funds under subpart D of this part.
complied with Emergency Solutions (5)HUD may deny matching credit for SUMMARY:The Homeless Emergency
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
effectuate the provisions of this division; and in the case of contracts receiving
federal assistance, the Contractor or the City may request the United States to
enter into such litigation to protect the interests of the United States.
(6) The Contractor shall file and shall cause his subcontractors, if any, to file
compliance reports with the Contractor in the same form and to the same extent as
required by the federal government for federal contracts under federal rules and
regulations. Such compliance reports shall be filed with the Human Rights and
Relations Contract Compliance Officer. Compliance reports filed at such times as
directed shall contain information as to the employment practices, policies,
programs and statistics of the Contractor and his subcontractors.
(7) The Contractor shall include the provisions of Paragraphs (1) through (7) of this
Section, "Equal Employment Opportunity Clause", and Omaha Municipal Code
Section 10-193 in every contract, subcontract or purchase order so that such
provisions will be binding upon each subcontractor or vendor. (Code 1980,
Section 10-192; Ordinance No. 35344, Sections 1, 9-26-00)
Revised and approved 5/23/2012
ion, gender identity, sex, national origin, age,
disability or familial status.
(3) The Contractor and its subcontractors shall send to each representative of workers
with which he has a collective bargaining agreement or other contract or
understanding a notice advising the labor union or worker's representative of the
Contractor's commitments under the equal employment opportunity clause of the
City and shall post copies of the notice in conspicuous places available to
employees and applicants for employment.
(4) The Contractor and its subcontractors shall furnish to the City's Human Rights
and Relations Contract Compliance Officer all federal forms containing the
information and reports required by the federal government for federal contracts
under federal rules and regulations, including the information required by Omaha
Municipal Code Sections 10-192 to 10-194, inclusive, and shall permit reasonable
access to his records. Records accessible to the Human Rights and Relations
Contract Compliance Officer shall be those which are related to Paragraphs (1)
through (7) of this Exhibit and only after reasonable notice is given to the
Contractor. The purpose for this provision is to provide for investigation to
ascertain compliance with the program provided for herein.
(5) The Contractor and its subcontractors shall take such actions with respect to any
subcontractor as the City may direct as a means of enforcing the provisions of
Paragraphs (1) through (7) herein, including penalties and sanctions for
noncompliance; however, in the event the Contractor becomes involved in or is
threatened with litigation as the result of such directions by the City, the City will
enter into such litigation as is necessary to protect the interests of the City and to
Revised and approved 5/23/2012
ts of GAGAS. However,
the cognizant or oversight agency for audit may judge that any identified
material weaknesses do not affect the management of Federal awards and provide
a waiver.
32
udit findings would indicate higher risk,
particularly when the situations identified in the audit findings could have a
significant impact on a Federal program or have not been corrected.
(3) Federal programs not recently audited as major programs
31
notify the recipient and, if known, the auditor at least 180 days prior to the
29
shall be presented in
sufficient detail for the auditee to prepare a corrective action plan and take
corrective action and for Federal agencies and pass-through entities to arrive
at a management decision. The following specific information shall be
27
may affected activities to other eligible BILLING CODE 4210-67-P
also consider relevant information activities;
pertaining to the recipient's (v)Suspending disbursement of ESG
performance gained from other sources, funds for some or all activities; DEPARTMENT OF HOUSING AND
including citizen comments,complaint (vi)Reducing or terminating the URBAN DEVELOPMENT
determinations,and litigation.Reviews remaining grant of a subrecipient and
to determine compliance with specific reallocating those funds to other 24 CFR Parts 91,582,and 583
requirements of thispart will be subrecipients;and
q (vii)Making matching contributions (Docket No.FR-5333-F-02]
conducted as necessary,with or without before or as draws are made from the
prior notice to the recipient. RIN 2506-AC26
(2)If HUD determines preliminarily recipient's ESG grant.
that the recipient or one of its (2)HUD may change the method of Homeless Emergency Assistance and
subrecipients has not complied with an Payment to a reimbursement basis. Rapid Transition to Housing: Defining
ESG program requirement,HUD will y3)HUD may suspend payments to' Homeless
the extent HUD deems it necessary to
give the recipient notice of this preclude the further expenditure of AGENCY:Office of the Assistant
determination and an opportunity to funds for affected activities. Secretary for Community Planning and
demonstrate,within the time prescribed (4)HUD may remove the recipient . Development,HUD.
by HUD and on the basis of substantial from participation in reallocations of ACTION:Final rule.
facts and data,that the recipient has funds under subpart D of this part.
complied with Emergency Solutions (5)HUD may deny matching credit for SUMMARY:The Homeless Emergency
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
thibif (.1
SECTION 3 CLAUSE
All Section 3 covered contracts shall include the following clause (referred to as the Section 3
clause):
A. The work to be performed under this contract is subject to the requirements of Section 3
of the Housing and Urban Development Act of 1968, as amended, 12 U.S.C. 1701u
(Section 3). The purpose of Section 3 is to ensure that employment and other economic
opportunities generated by HUD assistance or HUD-assisted projects covered by Section
3 shall, to the greatest extent feasible, be directed to low- and very low-income persons,
particularly persons who are recipients of HUD assistance for housing.
B. The parties to this contract agree to comply with HUD's regulations in 24 CFR part 135,
which implement Section 3. As evidenced by their execution of this contract, the parties
to this contract certify that they are under no contractual or other impediment that would
prevent them from complying with the part 135 regulations.
C. The contractor agrees to send to each labor organization or representative of workers with
which the contractor has a collective bargaining agreement or other understanding, if any,
a notice advising the labor organization or workers' representative of the contractor's
commitments under this Section 3 clause, and will post copies of the notice in
conspicuous places at the work site where both employees and applicants for training and
employment positions can see the notice. The notice shall describe the Section 3
preference, shall set forth minimum number and job titles subject to hire, availability of
apprenticeship and training positions, the qualifications for each; and the name and
location of the person(s) taking applications for each of the positions; and the anticipated
date the work shall begin.
D. The contractor agrees to include this Section 3 clause in every subcontract subject to
compliance with regulations in 24 CFR part 135, and agrees to take appropriate action, as
of the subcontract or in this Section 3 clause,
provided in an applicable provisionupon a
of the regulations in 24 CFR part 135. The
finding that the subcontractor is in violation g
contractor will no6t subcontract with any subcontractor where the contractor has notice or
knowledge that the subcontractor has been found in violation of the regulations in 24
CFR part 135.
E. The contractor will certify that any vacant employment positions, including training
positions, that are filled (1) after the contractor is selected but before the contract is
executed, and (2) with persons other than those to whom the regulations of 24 CFR part
135 require employment opportunities to be directed were not filled to circumvent the
contractor's obligations under 24 CFR part 135.
F. Noncompliance with HUD's regulations in 24 CFR part 135 may result in sanctions,
termination of this contract for default, and debarment or suspension from future HUD-
assisted contracts.
ed 5/23/2012
ts of GAGAS. However,
the cognizant or oversight agency for audit may judge that any identified
material weaknesses do not affect the management of Federal awards and provide
a waiver.
32
udit findings would indicate higher risk,
particularly when the situations identified in the audit findings could have a
significant impact on a Federal program or have not been corrected.
(3) Federal programs not recently audited as major programs
31
notify the recipient and, if known, the auditor at least 180 days prior to the
29
shall be presented in
sufficient detail for the auditee to prepare a corrective action plan and take
corrective action and for Federal agencies and pass-through entities to arrive
at a management decision. The following specific information shall be
27
may affected activities to other eligible BILLING CODE 4210-67-P
also consider relevant information activities;
pertaining to the recipient's (v)Suspending disbursement of ESG
performance gained from other sources, funds for some or all activities; DEPARTMENT OF HOUSING AND
including citizen comments,complaint (vi)Reducing or terminating the URBAN DEVELOPMENT
determinations,and litigation.Reviews remaining grant of a subrecipient and
to determine compliance with specific reallocating those funds to other 24 CFR Parts 91,582,and 583
requirements of thispart will be subrecipients;and
q (vii)Making matching contributions (Docket No.FR-5333-F-02]
conducted as necessary,with or without before or as draws are made from the
prior notice to the recipient. RIN 2506-AC26
(2)If HUD determines preliminarily recipient's ESG grant.
that the recipient or one of its (2)HUD may change the method of Homeless Emergency Assistance and
subrecipients has not complied with an Payment to a reimbursement basis. Rapid Transition to Housing: Defining
ESG program requirement,HUD will y3)HUD may suspend payments to' Homeless
the extent HUD deems it necessary to
give the recipient notice of this preclude the further expenditure of AGENCY:Office of the Assistant
determination and an opportunity to funds for affected activities. Secretary for Community Planning and
demonstrate,within the time prescribed (4)HUD may remove the recipient . Development,HUD.
by HUD and on the basis of substantial from participation in reallocations of ACTION:Final rule.
facts and data,that the recipient has funds under subpart D of this part.
complied with Emergency Solutions (5)HUD may deny matching credit for SUMMARY:The Homeless Emergency
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
G. With respect to work performed in connection with Section 3 covered Indian housing
assistance, Section 7(b) of the Indian Self-Determination and Education Assistance Act
(25 U.S.C. 450e) also applies to the work to be performed under this contract. Section
7(b) requires that to the greatest extent feasible (i) preference and opportunities for
training and employment shall be given to Indians, and (ii) preference in the award of
contracts and subcontracts shall be given to Indian organizations and Indian-owned
Economic Enterprises. Parties to this contract that are subject to the provisions of
Section 8 and Section 7(b) agree to comply with Section 3 to the maximum extent
feasible, but not in derogation of compliance with Section 87 (b).
Providing Other Economic Opportunities.
(a) General. In accordance with the findings of the Congress, as stated in Section 3,
that other economic opportunities offer an effective means of empowering low-
income persons, a recipient is encouraged to undertake efforts to provide to low-
income persons economic opportunities other than training, employment and
contract awards, in connection with Section 3 covered assistance.
(b) Other training and employment-related opportunities. Other economic opportunities
to train and employ Section 3 residents include, but need not be limited to, use of
"upward mobility", "bridge" and trainee positions to fill vacancies; and hiring
Section 3 residents in part-time positions.
(c) Other business-related economic opportunities: (1) A recipient or contractor may
provide economic opportunities to establish, stabilize or expand Section 3 business
concerns, including micro-enterprises. Such opportunities include, but are not
limited to formation of Section 3 joint ventures, financial support for affiliating with
franchise development, use of labor only contracts for building trades, purchase of
supplies and materials from housing authority resident-owned businesses, purchase
of materials and supplies from PHA resident-owned businesses and use of
procedures under 24 CFR part 963 regarding HA,contracts to HA resident-owned
businesses. A.recipient or contractor may employ these methods directly or may
provide incentives to non-Section 3 businesses to utilize such methods to provide
other economic opportunities to low-income persons. (2) A Section 3 joint venture
means an association of business concerns, one of which qualifies as a Section 3
business concern, formed by written joint venture agreement to engage in and carry
out a specific business venture for which purpose the business concerns combine
their efforts, resources and skills for joint profit, but not necessarily on a continuing
or permanent basis for conducting business generally, and for which the Section 3
business concern:
(i) Is responsible for a clearly defined portion of the work to be performed and
holds management responsibilities in the joint venture; and
(ii) Performs at least 25 percent of the work and is contractually entitled to
compensation proportionate to its work.
do not affect the management of Federal awards and provide
a waiver.
32
udit findings would indicate higher risk,
particularly when the situations identified in the audit findings could have a
significant impact on a Federal program or have not been corrected.
(3) Federal programs not recently audited as major programs
31
notify the recipient and, if known, the auditor at least 180 days prior to the
29
shall be presented in
sufficient detail for the auditee to prepare a corrective action plan and take
corrective action and for Federal agencies and pass-through entities to arrive
at a management decision. The following specific information shall be
27
may affected activities to other eligible BILLING CODE 4210-67-P
also consider relevant information activities;
pertaining to the recipient's (v)Suspending disbursement of ESG
performance gained from other sources, funds for some or all activities; DEPARTMENT OF HOUSING AND
including citizen comments,complaint (vi)Reducing or terminating the URBAN DEVELOPMENT
determinations,and litigation.Reviews remaining grant of a subrecipient and
to determine compliance with specific reallocating those funds to other 24 CFR Parts 91,582,and 583
requirements of thispart will be subrecipients;and
q (vii)Making matching contributions (Docket No.FR-5333-F-02]
conducted as necessary,with or without before or as draws are made from the
prior notice to the recipient. RIN 2506-AC26
(2)If HUD determines preliminarily recipient's ESG grant.
that the recipient or one of its (2)HUD may change the method of Homeless Emergency Assistance and
subrecipients has not complied with an Payment to a reimbursement basis. Rapid Transition to Housing: Defining
ESG program requirement,HUD will y3)HUD may suspend payments to' Homeless
the extent HUD deems it necessary to
give the recipient notice of this preclude the further expenditure of AGENCY:Office of the Assistant
determination and an opportunity to funds for affected activities. Secretary for Community Planning and
demonstrate,within the time prescribed (4)HUD may remove the recipient . Development,HUD.
by HUD and on the basis of substantial from participation in reallocations of ACTION:Final rule.
facts and data,that the recipient has funds under subpart D of this part.
complied with Emergency Solutions (5)HUD may deny matching credit for SUMMARY:The Homeless Emergency
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
24 CFR 85.43 ENFORCEMENT
(a) Remedies for non-compliance. If a grantee or sub-grantee materially fails to comply with any term of
an award, whether stated in a federal statute or regulation, an assurance, in a State plan or application,
a notice of award, or elsewhere, the awarding agency may take one or more of the following actions,
as appropriate in the circumstances:
(1) Temporarily withhold cash payments pending correction of the deficiency by the grantee or
sub-grantee or more severe enforcement action by the awarding agency,
(2) Disallow (that is, deny both use of funds and matching credit for) all or part of the cost of the
activity or action not in compliance,
(3) Wholly or partly suspend or terminate the current award for the grantee's or sub-grantee's
program,
(4) Withhold further awards for the program, or,
(5) Take other remedies that may be legally available.
(b) Hearings, appeals. In taking an enforcement action, the awarding agency will provide the grantee or
sub-grantee an opportunity for such hearing, appeal or other administrative proceeding to which the
grantee or sub-grantee is entitles under any statute or regulation applicable to the action involved.
(c) Effects of suspension and termination. Costs of grantee or sub-grantee resulting from obligations
incurred by the grantee or sub-grantee during a suspension or after termination of an award are not
allowable unless the awarding agency expressly authorizes them in the notice of suspension or
termination or subsequently. Other grantee or sub-grantee costs during suspension or after
termination which are necessary and not reasonably avoidable are allowable if:
(1) The costs result from obligations which were properly incurred by the grantee or sub-
grantee before the effective date of suspension or termination, are not in anticipation of it,
and, in the case of a termination, are non-cancelable, and,
(2) The costs would be allowable if the award were not suspended or expired normally at the
end of the funding period in which the termination takes effect.
(d) Relationship to Debarment and Suspension. The enforcement remedies identified in this section,
including suspension and termination, do not preclude grantee or sub-grantee from being subject to
"Debarment and Suspension" under EO 12549 (see § 85.35).
24 CFR 85.44 TERMINATION FOR CONVENIENCE
Except as provided in § 85.43 awards may be terminated in whole or in part only as follows:
(a) By the awarding agency with the consent of the grantee or sub-grantee in which case the two parties
h effective date and in the case of partial
shall agree upon the termination conditions, including the
g P
termination,the portion to be terminated, or
(b) By the grantee or sub-grantee upon written notification to the awarding agency, setting forth the
reasons for such termination, the effective date, and in the case of partial termination, the portion to
be terminated. However, if, in the case of a partial termination, the awarding agency determines that
the remaining p accomplish of the award will not accom lish the purposes for which the award was made,
awarding agency mayterminate the award in its entiretyunder either 85.43 or Paragraph (a) of
the a g g y §
this section.
O
EQUAL HOUSING Rev. 5/7/08
OPPORTUNITY
particularly when the situations identified in the audit findings could have a
significant impact on a Federal program or have not been corrected.
(3) Federal programs not recently audited as major programs
31
notify the recipient and, if known, the auditor at least 180 days prior to the
29
shall be presented in
sufficient detail for the auditee to prepare a corrective action plan and take
corrective action and for Federal agencies and pass-through entities to arrive
at a management decision. The following specific information shall be
27
may affected activities to other eligible BILLING CODE 4210-67-P
also consider relevant information activities;
pertaining to the recipient's (v)Suspending disbursement of ESG
performance gained from other sources, funds for some or all activities; DEPARTMENT OF HOUSING AND
including citizen comments,complaint (vi)Reducing or terminating the URBAN DEVELOPMENT
determinations,and litigation.Reviews remaining grant of a subrecipient and
to determine compliance with specific reallocating those funds to other 24 CFR Parts 91,582,and 583
requirements of thispart will be subrecipients;and
q (vii)Making matching contributions (Docket No.FR-5333-F-02]
conducted as necessary,with or without before or as draws are made from the
prior notice to the recipient. RIN 2506-AC26
(2)If HUD determines preliminarily recipient's ESG grant.
that the recipient or one of its (2)HUD may change the method of Homeless Emergency Assistance and
subrecipients has not complied with an Payment to a reimbursement basis. Rapid Transition to Housing: Defining
ESG program requirement,HUD will y3)HUD may suspend payments to' Homeless
the extent HUD deems it necessary to
give the recipient notice of this preclude the further expenditure of AGENCY:Office of the Assistant
determination and an opportunity to funds for affected activities. Secretary for Community Planning and
demonstrate,within the time prescribed (4)HUD may remove the recipient . Development,HUD.
by HUD and on the basis of substantial from participation in reallocations of ACTION:Final rule.
facts and data,that the recipient has funds under subpart D of this part.
complied with Emergency Solutions (5)HUD may deny matching credit for SUMMARY:The Homeless Emergency
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
telteNb
CIRCULAR NO. A-122
Revised May 10, 2004
TO THE HEADS OF EXECUTIVE DEPARTMENTS AND ESTABLISHMENTS
SUBJECT: Cost Principles for Non-Profit Organizations
1. Purpose. This Circular establishes principles for determining costs of
grants, contracts and other agreements with non-profit organizations. It does
not apply to colleges and universities which are covered by Office of Management
and Budget (OMB) Circular A-21, "Cost Principles for Educational Institutions";
State, local, and federally-recognized Indian tribal governments which are
covered by OMB Circular A-87, "Cost Principles for State, Local, and Indian
Tribal Governments"; or hospitals. The principles are designed to provide that
the. Federal Government bear its fair share of costs except where restricted or
prohibited by law. The principles do not attempt to prescribe the extent of
cost sharing or matching on grants, contracts, or other agreements. However,
such cost sharing or matching shall not be accomplished through arbitrary
limitations on individual cost elements by Federal .agencies. Provision for
profit or other increment above cost is outside the scope of this Circular.
2. Supersession. This Circular supersedes cost principles issued•by individual
agencies for non-profit organizations.
3 . Applicability.
a. These principles shall be used by all Federal agencies in determining
the costs of work performed by non-profit organizations under grants,
cooperative agreements, cost reimbursement contracts, and other contracts in
which costs are used in pricing, administration, or settlement. All of these.
instruments are hereafter referred to as awards. The principles do not apply to
awards under which an organization is not required to account to the Federal
Government for actual costs incurred.
b. All cost reimbursement subawards (subgrants, subcontracts, etc. ) are
subject to those Federal cost principles applicable to the particular
organization concerned. Thus, if a subaward is to a non-profit organization,
this Circular shall apply; if a subaward is to a commercial organization, the
cost principles applicable to commercial concerns shall apply; if a subaward is
• to a college or university, Circular A-21 shall apply; if a subaward is to a
State, local, or federally-recognized Indian tribal government, Circular A-87
shall apply.
1
h effective date and in the case of partial
shall agree upon the termination conditions, including the
g P
termination,the portion to be terminated, or
(b) By the grantee or sub-grantee upon written notification to the awarding agency, setting forth the
reasons for such termination, the effective date, and in the case of partial termination, the portion to
be terminated. However, if, in the case of a partial termination, the awarding agency determines that
the remaining p accomplish of the award will not accom lish the purposes for which the award was made,
awarding agency mayterminate the award in its entiretyunder either 85.43 or Paragraph (a) of
the a g g y §
this section.
O
EQUAL HOUSING Rev. 5/7/08
OPPORTUNITY
particularly when the situations identified in the audit findings could have a
significant impact on a Federal program or have not been corrected.
(3) Federal programs not recently audited as major programs
31
notify the recipient and, if known, the auditor at least 180 days prior to the
29
shall be presented in
sufficient detail for the auditee to prepare a corrective action plan and take
corrective action and for Federal agencies and pass-through entities to arrive
at a management decision. The following specific information shall be
27
may affected activities to other eligible BILLING CODE 4210-67-P
also consider relevant information activities;
pertaining to the recipient's (v)Suspending disbursement of ESG
performance gained from other sources, funds for some or all activities; DEPARTMENT OF HOUSING AND
including citizen comments,complaint (vi)Reducing or terminating the URBAN DEVELOPMENT
determinations,and litigation.Reviews remaining grant of a subrecipient and
to determine compliance with specific reallocating those funds to other 24 CFR Parts 91,582,and 583
requirements of thispart will be subrecipients;and
q (vii)Making matching contributions (Docket No.FR-5333-F-02]
conducted as necessary,with or without before or as draws are made from the
prior notice to the recipient. RIN 2506-AC26
(2)If HUD determines preliminarily recipient's ESG grant.
that the recipient or one of its (2)HUD may change the method of Homeless Emergency Assistance and
subrecipients has not complied with an Payment to a reimbursement basis. Rapid Transition to Housing: Defining
ESG program requirement,HUD will y3)HUD may suspend payments to' Homeless
the extent HUD deems it necessary to
give the recipient notice of this preclude the further expenditure of AGENCY:Office of the Assistant
determination and an opportunity to funds for affected activities. Secretary for Community Planning and
demonstrate,within the time prescribed (4)HUD may remove the recipient . Development,HUD.
by HUD and on the basis of substantial from participation in reallocations of ACTION:Final rule.
facts and data,that the recipient has funds under subpart D of this part.
complied with Emergency Solutions (5)HUD may deny matching credit for SUMMARY:The Homeless Emergency
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
•
4 . Definitions.
a. Non-profit organization means any corporation, trust, association,
cooperative, or other organization which:
(1) is operated primarily for scientific, educational, service,
charitable, or similar purposes in the public interest;
(2) is not organized primarily for profit; and
(3) uses its net proceeds to maintain, improve, and/or expand its
operations. For this purpose, the term "non-profit organization" excludes (i)
colleges and universities; (ii) hospitals; (iii) State, local, and federally-
recognized Indian tribal governments; and (iv) those
non-profit organizations which are excluded from coverage of this Circular in
accordance with paragraph 5.
b. Prior approval means securing the awarding agency's permission in
advance to incur cost for those items that are designated as requiring prior
approval by the Circular. Generally this permission will be in writing. Where
an item of cost requiring prior approval is specified in the budget of an award,
approval of the budget constitutes approval of that cost.
5. Exclusion of some non-profit organizations. Some non-profit organizations,
because of their size and nature of operations, can be considered to be similar
to commercial concerns for purpose of applicability of cost principles. Such
non-profit organizations shall operate under Federal cost principles applicable
to commercial concerns. A listing of these organizations is contained in
Attachment C. Other organizations may be added from time to time.
6 . Responsibilities. Agencies responsible for administering programs that
involve awards to non-profit organizations shall implement the provisions of
this Circular. Upon request, implementing instruction shall be furnished to
OMB. Agencies shall designate a liaison official to serve as the agency
representative on matters relating to the implementation of this Circular. The
name and title of such representative shall be furnished to OMB within 30 days
of the date of this Circular.
7. Attachments. The principles and related policy guides are set forth in the
following Attachments:
Attachment A - General Principles
Attachment B - Selected Items of Cost
Attachment C - Non-Profit Organizations Not Subject To This Circular
8. Requests for exceptions. OMB may grant exceptions to the requirements of
this Circular when permissible under existing law. However, in the interest of
achieving maximum uniformity, exceptions will be permitted only in highly
unusual circumstances.
9. Effective Date. The provisions of this Circular are effective immediately.
Implementation shall be phased in by incorporating the provisions into new
awards made after the start of the organization's next fiscal year. For
existing awards, the new principles may be applied if an organization and the
cognizant Federal agency agree. Earlier implementation, or .a delay in
2
erminate the award in its entiretyunder either 85.43 or Paragraph (a) of
the a g g y §
this section.
O
EQUAL HOUSING Rev. 5/7/08
OPPORTUNITY
particularly when the situations identified in the audit findings could have a
significant impact on a Federal program or have not been corrected.
(3) Federal programs not recently audited as major programs
31
notify the recipient and, if known, the auditor at least 180 days prior to the
29
shall be presented in
sufficient detail for the auditee to prepare a corrective action plan and take
corrective action and for Federal agencies and pass-through entities to arrive
at a management decision. The following specific information shall be
27
may affected activities to other eligible BILLING CODE 4210-67-P
also consider relevant information activities;
pertaining to the recipient's (v)Suspending disbursement of ESG
performance gained from other sources, funds for some or all activities; DEPARTMENT OF HOUSING AND
including citizen comments,complaint (vi)Reducing or terminating the URBAN DEVELOPMENT
determinations,and litigation.Reviews remaining grant of a subrecipient and
to determine compliance with specific reallocating those funds to other 24 CFR Parts 91,582,and 583
requirements of thispart will be subrecipients;and
q (vii)Making matching contributions (Docket No.FR-5333-F-02]
conducted as necessary,with or without before or as draws are made from the
prior notice to the recipient. RIN 2506-AC26
(2)If HUD determines preliminarily recipient's ESG grant.
that the recipient or one of its (2)HUD may change the method of Homeless Emergency Assistance and
subrecipients has not complied with an Payment to a reimbursement basis. Rapid Transition to Housing: Defining
ESG program requirement,HUD will y3)HUD may suspend payments to' Homeless
the extent HUD deems it necessary to
give the recipient notice of this preclude the further expenditure of AGENCY:Office of the Assistant
determination and an opportunity to funds for affected activities. Secretary for Community Planning and
demonstrate,within the time prescribed (4)HUD may remove the recipient . Development,HUD.
by HUD and on the basis of substantial from participation in reallocations of ACTION:Final rule.
facts and data,that the recipient has funds under subpart D of this part.
complied with Emergency Solutions (5)HUD may deny matching credit for SUMMARY:The Homeless Emergency
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
s
implementation of individual provisions, is also permitted by mutual agreement
between an organization and the cognizant Federal agency.
10. Inquiries. Further information concerning this Circular may be obtained by
contacting the Office of Federal Financial Management, OMB, Washington, DC
20503, telephone (202) 395-3993.
Attachments
3
Executive Director,to take all
actions, including the execution of the Agreement with the City of Omaha to carry out the purpose of
this Resolution.
Approved by the Board on July 4), 2012.
Signed: � C. .r lr�i�a � _)
Board Secretary
Contractors
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fl700-res
aermaz
By ci1member
Adopted S. 1. 12012 •
C• Clerk
Approved... .
Mayor
treets
ATTACHMENT A
Circular No. A-122
GENERAL PRINCIPLES
Table of Contents
A. Basic Considerations
1. Composition of total costs
2. Factors affecting allowability of costs
3. Reasonable costs
4 . Allocable costs
5. Applicable credits
6. Advance understandings
7. Conditional exemptions
B. Direct Costs
C. Indirect Costs
D. Allocation of Indirect Costs and Determination of Indirect Cost Rates
1. General
2. Simplified allocation method
3 . Multiple allocation base method
4. Direct allocation method
5. Special indirect cost rates
4
a
1 ` p \�_
fl700-res
aermaz
By ci1member
Adopted S. 1. 12012 •
C• Clerk
Approved... .
Mayor
treets
E. Negotiation and Approval of Indirect Cost Rates
1. Definitions
2. Negotiation and approval of rates
5
1. Composition of total costs
2. Factors affecting allowability of costs
3. Reasonable costs
4 . Allocable costs
5. Applicable credits
6. Advance understandings
7. Conditional exemptions
B. Direct Costs
C. Indirect Costs
D. Allocation of Indirect Costs and Determination of Indirect Cost Rates
1. General
2. Simplified allocation method
3 . Multiple allocation base method
4. Direct allocation method
5. Special indirect cost rates
4
a
1 ` p \�_
fl700-res
aermaz
By ci1member
Adopted S. 1. 12012 •
C• Clerk
Approved... .
Mayor
treets
' o
ATTACHMENT A
Circular No. A-122
GENERAL PRINCIPLES
A. Basic Considerations
1. Composition of total costs. The total cost of an award is the sum of
the allowable direct and allocable indirect costs less any applicable credits.
2. Factors affecting allowability of costs. To be allowable under an
award, costs must meet the following general criteria:
a. Be reasonable for the performance of the award and be allocable
thereto under these principles.
b. Conform to any limitations or exclusions set forth in these
principles or in the award as to types or amount of cost items.
c. Be consistent with policies and procedures that apply uniformly
to both federally-financed and other activities of the organization.
d. Be accorded consistent treatment.
e. Be determined in accordance with generally accepted accounting
principles (GAAP) .
f. Not be included as a cost or used to meet cost sharing or
matching requirements of any other federally-financed program in either the
current or a prior period.
g. Be adequately documented.
3. Reasonable costs. A cost is reasonable if, in its nature or amount,
it does not exceed that which would be incurred by a prudent person under the
circumstances prevailing at the time the decision was made to incur the costs.
The question of the reasonableness of specific costs must be scrutinized with
particular care in connection with organizations or separate divisions thereof
which receive the preponderance of their support from awards made by Federal
agencies. In determining the reasonableness of a given cost, consideration
shall be given to:
a. Whether the cost is of a type generally recognized as ordinary
and necessary for the operation of the organization or the performance of the
award.
6
ncy
representative on matters relating to the implementation of this Circular. The
name and title of such representative shall be furnished to OMB within 30 days
of the date of this Circular.
7. Attachments. The principles and related policy guides are set forth in the
following Attachments:
Attachment A - General Principles
Attachment B - Selected Items of Cost
Attachment C - Non-Profit Organizations Not Subject To This Circular
8. Requests for exceptions. OMB may grant exceptions to the requirements of
this Circular when permissible under existing law. However, in the interest of
achieving maximum uniformity, exceptions will be permitted only in highly
unusual circumstances.
9. Effective Date. The provisions of this Circular are effective immediately.
Implementation shall be phased in by incorporating the provisions into new
awards made after the start of the organization's next fiscal year. For
existing awards, the new principles may be applied if an organization and the
cognizant Federal agency agree. Earlier implementation, or .a delay in
2
erminate the award in its entiretyunder either 85.43 or Paragraph (a) of
the a g g y §
this section.
O
EQUAL HOUSING Rev. 5/7/08
OPPORTUNITY
particularly when the situations identified in the audit findings could have a
significant impact on a Federal program or have not been corrected.
(3) Federal programs not recently audited as major programs
31
notify the recipient and, if known, the auditor at least 180 days prior to the
29
shall be presented in
sufficient detail for the auditee to prepare a corrective action plan and take
corrective action and for Federal agencies and pass-through entities to arrive
at a management decision. The following specific information shall be
27
may affected activities to other eligible BILLING CODE 4210-67-P
also consider relevant information activities;
pertaining to the recipient's (v)Suspending disbursement of ESG
performance gained from other sources, funds for some or all activities; DEPARTMENT OF HOUSING AND
including citizen comments,complaint (vi)Reducing or terminating the URBAN DEVELOPMENT
determinations,and litigation.Reviews remaining grant of a subrecipient and
to determine compliance with specific reallocating those funds to other 24 CFR Parts 91,582,and 583
requirements of thispart will be subrecipients;and
q (vii)Making matching contributions (Docket No.FR-5333-F-02]
conducted as necessary,with or without before or as draws are made from the
prior notice to the recipient. RIN 2506-AC26
(2)If HUD determines preliminarily recipient's ESG grant.
that the recipient or one of its (2)HUD may change the method of Homeless Emergency Assistance and
subrecipients has not complied with an Payment to a reimbursement basis. Rapid Transition to Housing: Defining
ESG program requirement,HUD will y3)HUD may suspend payments to' Homeless
the extent HUD deems it necessary to
give the recipient notice of this preclude the further expenditure of AGENCY:Office of the Assistant
determination and an opportunity to funds for affected activities. Secretary for Community Planning and
demonstrate,within the time prescribed (4)HUD may remove the recipient . Development,HUD.
by HUD and on the basis of substantial from participation in reallocations of ACTION:Final rule.
facts and data,that the recipient has funds under subpart D of this part.
complied with Emergency Solutions (5)HUD may deny matching credit for SUMMARY:The Homeless Emergency
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
b. The restraints or requirements imposed by such factors as
generally accepted sound business practices, arms length bargaining, Federal and
State laws and regulations, and terms and conditions of the award.
c. Whether the individuals concerned acted with prudence in the
circumstances, considering their responsibilities to the organization, its
members, employees, and clients, the public at large, and the Federal
Government.
d. Significant deviations from the established practices of the
organization which may unjustifiably increase the award costs.
4 . Allocable costs.
a. A cost is allocable to a particular cost objective, such as a
grant, contract, project, service, or other activity, in accordance with the
relative benefits received. A cost is allocable to a Federal award if it is
treated consistently with other costs incurred for the same purpose in like
circumstances and if it:
(1) Is incurred specifically for the award.
(2) Benefits both the award and other work and can be
distributed in reasonable proportion to the benefits received, or
(3) Is necessary to the overall operation of the organization,
although a direct relationship to any particular cost objective cannot be shown.
b. Any cost allocable to a particular award or other cost objective
under these principles may not be shifted to other Federal awards to overcome
funding deficiencies, or to avoid restrictions imposed by law or by the terms of
the award.
5. Applicable credits.
a. The term applicable credits refers to those receipts, or
reduction of expenditures which operate to offset or reduce expense items that
are allocable to awards as direct or indirect costs. Typical examples of such
transactions are: purchase discounts, rebates or allowances, recoveries or
indemnities on losses, insurance refunds, and adjustments of overpayments or
erroneous charges. To the extent that such credits accruing or received by the
organization relate to allowable cost, they shall be credited to the Federal
Government either as a cost reduction or cash refund, as appropriate.
b. In some instances, the amounts received from the Federal
Government to finance organizational activities or service operations should be
treated as applicable credits. Specifically, the concept of netting such credit
items against related expenditures should be applied by the organization in
determining the rates or amounts to be charged to Federal awards for services
rendered whenever the facilities or other resources used in providing such
services have been financed directly, in whole. or in part, by Federal funds.
c. For rules covering program income (i.e. , gross income earned
from federally-supported activities) see Sec. _.24 of Office of Management and
Budget (OMB) Circular A-110, "Uniform Administrative Requirements for Grants and
Agreements with Institutions of Higher Education, Hospitals, and Other Non-
Profit Organizations. "
7
n its entiretyunder either 85.43 or Paragraph (a) of
the a g g y §
this section.
O
EQUAL HOUSING Rev. 5/7/08
OPPORTUNITY
particularly when the situations identified in the audit findings could have a
significant impact on a Federal program or have not been corrected.
(3) Federal programs not recently audited as major programs
31
notify the recipient and, if known, the auditor at least 180 days prior to the
29
shall be presented in
sufficient detail for the auditee to prepare a corrective action plan and take
corrective action and for Federal agencies and pass-through entities to arrive
at a management decision. The following specific information shall be
27
may affected activities to other eligible BILLING CODE 4210-67-P
also consider relevant information activities;
pertaining to the recipient's (v)Suspending disbursement of ESG
performance gained from other sources, funds for some or all activities; DEPARTMENT OF HOUSING AND
including citizen comments,complaint (vi)Reducing or terminating the URBAN DEVELOPMENT
determinations,and litigation.Reviews remaining grant of a subrecipient and
to determine compliance with specific reallocating those funds to other 24 CFR Parts 91,582,and 583
requirements of thispart will be subrecipients;and
q (vii)Making matching contributions (Docket No.FR-5333-F-02]
conducted as necessary,with or without before or as draws are made from the
prior notice to the recipient. RIN 2506-AC26
(2)If HUD determines preliminarily recipient's ESG grant.
that the recipient or one of its (2)HUD may change the method of Homeless Emergency Assistance and
subrecipients has not complied with an Payment to a reimbursement basis. Rapid Transition to Housing: Defining
ESG program requirement,HUD will y3)HUD may suspend payments to' Homeless
the extent HUD deems it necessary to
give the recipient notice of this preclude the further expenditure of AGENCY:Office of the Assistant
determination and an opportunity to funds for affected activities. Secretary for Community Planning and
demonstrate,within the time prescribed (4)HUD may remove the recipient . Development,HUD.
by HUD and on the basis of substantial from participation in reallocations of ACTION:Final rule.
facts and data,that the recipient has funds under subpart D of this part.
complied with Emergency Solutions (5)HUD may deny matching credit for SUMMARY:The Homeless Emergency
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
6. Advance understandings. Under any given award, the reasonableness and
allocability of certain items of costs may be difficult to determine. This is
particularly true in connection with organizations that receive a preponderance
of their support from Federal agencies. In order to avoid subsequent
disallowance or dispute based on unreasonableness or nonallocability, it is
often desirable to seek a written agreement with the cognizant or awarding
agency in advance of the incurrence of special or unusual costs. The absence of
an advance agreement on any element of cost will not, in itself, affect the
reasonableness or allocability of that element.
7. Conditional exemptions.
a. OMB authorizes conditional exemption from OMB administrative
requirements and cost principles circulars for certain Federal programs with
statutorily-authorized consolidated planning and consolidated administrative
funding, that are identified by a Federal agency and approved by the head of
the Executive department or establishment. A Federal agency shall consult with
OMB during its consideration of whether to grant such an exemption.
b. To promote efficiency in State and local program administration,
when Federal non-entitlement programs with common purposes have specific
statutorily-authorized consolidated planning and consolidated administrative
funding and where most of the State agency's resources come from non-Federal
sources, Federal agencies may exempt these covered State-administered, non-
entitlement grant programs from certain OMB grants management requirements. The
exemptions would be from all but the allocability of costs provisions of OMB
Circulars A-87 (Attachment A, subsection C.3) , "Cost Principles for State,
Local, and Indian Tribal Governments, " A-21 (Section C, subpart 4) , "Cost
Principles for Educational Institutions, " and A-122 (Attachment A, subsection
A.4) , "Cost Principles for Non-Profit Organizations, " and from all of the
administrative requirements provisions of OMB Circular A-110, "Uniform
Administrative Requirements for Grants and Agreements with Institutions of
Higher Education, Hospitals, and Other Non-Profit Organizations, " and the
agencies' grants management common rule.
c. When a Federal agency provides this flexibility, as a
prerequisite to a State's exercising this option, a State must adopt its own
written fiscal and administrative requirements for expending and accounting for
all funds, which are consistent with the provisions of OMB Circular A-87, and
extend such policies to all subrecipients. These fiscal and administrative
requirements must be sufficiently specific to ensure that: funds are used in
compliance with all applicable Federal statutory and regulatory provisions,
costs are reasonable and necessary for operating these programs, and funds are
not be used for general expenses required to carry out other responsibilities of
a State or its subrecipients.
B. Direct Costs
1. Direct costs are those that can be identified specifically with a
particular final cost objective, i.e. , a particular award, project, service, or
other direct activity of an organization. However, a cost may not be assigned
to an award as a direct cost if any other cost incurred for the same purpose, in
like circumstance, has been allocated to an award as an indirect cost. Costs
identified specifically with awards are direct costs of the awards and are to be
assigned directly thereto. Costs identified specifically with other final cost
8
ion plan and take
corrective action and for Federal agencies and pass-through entities to arrive
at a management decision. The following specific information shall be
27
may affected activities to other eligible BILLING CODE 4210-67-P
also consider relevant information activities;
pertaining to the recipient's (v)Suspending disbursement of ESG
performance gained from other sources, funds for some or all activities; DEPARTMENT OF HOUSING AND
including citizen comments,complaint (vi)Reducing or terminating the URBAN DEVELOPMENT
determinations,and litigation.Reviews remaining grant of a subrecipient and
to determine compliance with specific reallocating those funds to other 24 CFR Parts 91,582,and 583
requirements of thispart will be subrecipients;and
q (vii)Making matching contributions (Docket No.FR-5333-F-02]
conducted as necessary,with or without before or as draws are made from the
prior notice to the recipient. RIN 2506-AC26
(2)If HUD determines preliminarily recipient's ESG grant.
that the recipient or one of its (2)HUD may change the method of Homeless Emergency Assistance and
subrecipients has not complied with an Payment to a reimbursement basis. Rapid Transition to Housing: Defining
ESG program requirement,HUD will y3)HUD may suspend payments to' Homeless
the extent HUD deems it necessary to
give the recipient notice of this preclude the further expenditure of AGENCY:Office of the Assistant
determination and an opportunity to funds for affected activities. Secretary for Community Planning and
demonstrate,within the time prescribed (4)HUD may remove the recipient . Development,HUD.
by HUD and on the basis of substantial from participation in reallocations of ACTION:Final rule.
facts and data,that the recipient has funds under subpart D of this part.
complied with Emergency Solutions (5)HUD may deny matching credit for SUMMARY:The Homeless Emergency
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
•
objectives of the organization are direct costs of those cost objectives and are
not to be assigned to other awards directly or indirectly.
2. Any direct cost of a minor amount may be treated as an indirect cost
for reasons of practicality where the accounting treatment for such cost is
consistently applied to all final cost objectives.
3 . The cost of certain activities are not allowable as charges to Federal
awards (see, for example, fundraising costs in paragraph 17 of Attachment B) .
However, even though these costs are unallowable for purposes of computing
charges to Federal awards, they nonetheless must be treated as direct costs for
purposes of determining indirect cost rates and be allocated their share of the
organization's indirect costs if they represent activities which (1) include the
salaries of personnel, (2) occupy space, and (3) benefit from the organization's
indirect costs.
4. The costs of activities performed primarily as a service to members,
clients, or the general public when significant and necessary to the
organization's mission must be treated as direct costs whether or not allowable
and be allocated an equitable share of indirect costs. Some examples of these
types of activities include:
a. Maintenance of membership rolls, subscriptions, publications,
and related functions.
b. Providing services and information to members, legislative or
administrative bodies, or the public.
c. Promotion, lobbying, and other forms of public relations.
d. Meetings and conferences except those held to conduct the
general administration of the organization.
e. Maintenance, protection, and investment of special funds not
used in operation of the organization.
f. Administration of group benefits on behalf of members or
clients, including life and hospital insurance, annuity or retirement plans,
financial aid, etc.
C. Indirect Costs
1. Indirect costs are those that have been incurred for common or joint
objectives and cannot be readily identified with a particular final cost
objective. Direct cost of minor amounts may be treated as indirect costs under
the conditions described in subparagraph B.2. After direct costs have been
determined and assigned directly to awards or other work as appropriate,
indirect costs are those remaining to be allocated to benefiting cost
objectives. A cost may not be allocated to an award as an indirect cost if any
other cost incurred for the same purpose, in like circumstances, has been
assigned to an award as a direct cost.
2. Because of the diverse characteristics and accounting practices of
non-profit organizations, it is not possible to specify the types of cost which
may be classified as indirect cost in all situations. However, typical examples
of indirect cost for many non-profit organizations may include depreciation or
9
a State or its subrecipients.
B. Direct Costs
1. Direct costs are those that can be identified specifically with a
particular final cost objective, i.e. , a particular award, project, service, or
other direct activity of an organization. However, a cost may not be assigned
to an award as a direct cost if any other cost incurred for the same purpose, in
like circumstance, has been allocated to an award as an indirect cost. Costs
identified specifically with awards are direct costs of the awards and are to be
assigned directly thereto. Costs identified specifically with other final cost
8
ion plan and take
corrective action and for Federal agencies and pass-through entities to arrive
at a management decision. The following specific information shall be
27
may affected activities to other eligible BILLING CODE 4210-67-P
also consider relevant information activities;
pertaining to the recipient's (v)Suspending disbursement of ESG
performance gained from other sources, funds for some or all activities; DEPARTMENT OF HOUSING AND
including citizen comments,complaint (vi)Reducing or terminating the URBAN DEVELOPMENT
determinations,and litigation.Reviews remaining grant of a subrecipient and
to determine compliance with specific reallocating those funds to other 24 CFR Parts 91,582,and 583
requirements of thispart will be subrecipients;and
q (vii)Making matching contributions (Docket No.FR-5333-F-02]
conducted as necessary,with or without before or as draws are made from the
prior notice to the recipient. RIN 2506-AC26
(2)If HUD determines preliminarily recipient's ESG grant.
that the recipient or one of its (2)HUD may change the method of Homeless Emergency Assistance and
subrecipients has not complied with an Payment to a reimbursement basis. Rapid Transition to Housing: Defining
ESG program requirement,HUD will y3)HUD may suspend payments to' Homeless
the extent HUD deems it necessary to
give the recipient notice of this preclude the further expenditure of AGENCY:Office of the Assistant
determination and an opportunity to funds for affected activities. Secretary for Community Planning and
demonstrate,within the time prescribed (4)HUD may remove the recipient . Development,HUD.
by HUD and on the basis of substantial from participation in reallocations of ACTION:Final rule.
facts and data,that the recipient has funds under subpart D of this part.
complied with Emergency Solutions (5)HUD may deny matching credit for SUMMARY:The Homeless Emergency
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
use allowances on buildings and equipment, the costs of operating and
maintaining facilities, and general administration and general expenses, such as
the salaries and expenses of executive officers, personnel administration, and
accounting.
3. Indirect costs shall be classified within two broad categories:
"Facilities" and "Administration. " "Facilities" is defined as depreciation and
use allowances on buildings, equipment and capital improvement, interest on debt
associated with certain buildings, equipment and capital improvements, and
operations and maintenance expenses. "Administration" is defined as general
administration and general expenses such as the director's office, accounting,
personnel, library expenses and all other types of expenditures not listed
specifically under one of the subcategories of "Facilities" (including cross
allocations from other pools, where applicable) . See indirect cost rate
reporting requirements in subparagraphs D.2.e and D.3.g.
D. Allocation of Indirect Costs and Determination of Indirect Cost Rates
1. General.
a. Where a non-profit organization has only one major function, or
where all its major functions benefit from its indirect costs to approximately
the same degree, the allocation of indirect costs and the computation of an
indirect cost rate may be accomplished through simplified allocation procedures,
as described in subparagraph 2.
b. Where an organization has several major functions which benefit
from its indirect costs in varying degrees, allocation of indirect costs may
require the accumulation of such costs into separate cost groupings which then
are allocated individually to benefiting functions by means of a base which best
measures the relative degree of benefit. The indirect costs allocated to each
function are then distributed to individual awards and other activities included
in that function by means of an indirect cost rate(s) .
c. The determination of what constitutes an organization's major
functions will depend on its purpose in being; the types of services it renders
to the public, its clients, and its members; and the amount of effort it devotes
to such activities as fundraising, public information and membership activities.
d. Specific methods for allocating indirect costs and computing
indirect cost rates along with the conditions under which each method should be
used are described in subparagraphs 2 through 5.
e. The base period for the allocation of indirect costs is the
period in which such costs are incurred and accumulated for allocation to work
performed in that period. The base period normally should coincide with the
organization's fiscal year but, in any event, shall be so selected as to avoid
inequities in the allocation of the costs.
2. Simplified allocation method.
a. Where an organization's major functions benefit from its
indirect costs to approximately the same degree, the allocation of indirect
costs may be accomplished by (i) separating the organization's total costs for
the base period as either direct or indirect, and (ii) dividing the total
allowable indirect costs (net of applicable credits) by an equitable
10
d
to an award as a direct cost if any other cost incurred for the same purpose, in
like circumstance, has been allocated to an award as an indirect cost. Costs
identified specifically with awards are direct costs of the awards and are to be
assigned directly thereto. Costs identified specifically with other final cost
8
ion plan and take
corrective action and for Federal agencies and pass-through entities to arrive
at a management decision. The following specific information shall be
27
may affected activities to other eligible BILLING CODE 4210-67-P
also consider relevant information activities;
pertaining to the recipient's (v)Suspending disbursement of ESG
performance gained from other sources, funds for some or all activities; DEPARTMENT OF HOUSING AND
including citizen comments,complaint (vi)Reducing or terminating the URBAN DEVELOPMENT
determinations,and litigation.Reviews remaining grant of a subrecipient and
to determine compliance with specific reallocating those funds to other 24 CFR Parts 91,582,and 583
requirements of thispart will be subrecipients;and
q (vii)Making matching contributions (Docket No.FR-5333-F-02]
conducted as necessary,with or without before or as draws are made from the
prior notice to the recipient. RIN 2506-AC26
(2)If HUD determines preliminarily recipient's ESG grant.
that the recipient or one of its (2)HUD may change the method of Homeless Emergency Assistance and
subrecipients has not complied with an Payment to a reimbursement basis. Rapid Transition to Housing: Defining
ESG program requirement,HUD will y3)HUD may suspend payments to' Homeless
the extent HUD deems it necessary to
give the recipient notice of this preclude the further expenditure of AGENCY:Office of the Assistant
determination and an opportunity to funds for affected activities. Secretary for Community Planning and
demonstrate,within the time prescribed (4)HUD may remove the recipient . Development,HUD.
by HUD and on the basis of substantial from participation in reallocations of ACTION:Final rule.
facts and data,that the recipient has funds under subpart D of this part.
complied with Emergency Solutions (5)HUD may deny matching credit for SUMMARY:The Homeless Emergency
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
distribution base. The result of this process is an indirect cost rate which is
used to distribute indirect costs to individual awards. The rate should be
expressed as the percentage which the total amount of allowable indirect costs
bears to the base selected. This method should also be used where an
organization has only one major function encompassing a number of individual
projects or activities, and may be used where the level of Federal awards to an
organization is relatively small.
b. Both the direct costs and the indirect costs shall exclude
capital expenditures and unallowable costs. However, unallowable costs which
represent activities must be included in the direct costs under the conditions
described in subparagraph B.3 .
c. The distribution base may be total direct costs (excluding
capital expenditures and other distorting items, such as major subcontracts or
subgrants) , direct salaries and wages, or other base which results in an
equitable distribution. The distribution base shall generally exclude
participant support costs as defined in paragraph 32 of Attachment B.
d. Except where a special rate(s) is required in accordance with
subparagraph 5, the indirect cost rate developed under the above principles is
applicable to all awards at the organization. If a special rate(s) is required,
appropriate modifications shall be made in -order to develop the special rate(s) .
e. For an organization that receives more than $10 million in
Federal funding of direct costs in a fiscal year, a breakout of the indirect
cost component into two broad categories, Facilities and Administration as
defined in subparagraph C.3, is required. The rate in each case shall be stated
as the percentage which the amount of the particular indirect cost category .
(i.e. , Facilities or Administration) is of the distribution base identified with
that category.
3. Multiple allocation base method
a. General. Where an organization's indirect costs benefit its
major functions in varying degrees, indirect costs shall be accumulated into
separate cost groupings, as described in subparagraph b. Each grouping shall
then be allocated individually to benefitting functions by means of a base which
best measures the relative benefits. The default allocation bases by cost pool
are described in subparagraph c.
b. Identification of indirect costs. Cost groupings shall be
established so as to permit the allocation of each grouping on the basis of
benefits provided to the major functions. Each grouping shall constitute a pool
of expenses that are of like character in terms of functions they benefit and in
terms of the allocation base which best measures the relative benefits provided
to each function. The groupings are classified within the two broad categories:
"Facilities" and "Administration, " as described in subparagraph C.3. The
indirect cost pools are defined as follows:
(1) Depreciation and use allowances. The expenses under this
heading are the portion of the costs of the organization's buildings, capital
improvements to land and buildings, and equipment which are computed in
accordance with paragraph 11 of Attachment B ("Depreciation and use
allowances") .
11
mstance, has been allocated to an award as an indirect cost. Costs
identified specifically with awards are direct costs of the awards and are to be
assigned directly thereto. Costs identified specifically with other final cost
8
ion plan and take
corrective action and for Federal agencies and pass-through entities to arrive
at a management decision. The following specific information shall be
27
may affected activities to other eligible BILLING CODE 4210-67-P
also consider relevant information activities;
pertaining to the recipient's (v)Suspending disbursement of ESG
performance gained from other sources, funds for some or all activities; DEPARTMENT OF HOUSING AND
including citizen comments,complaint (vi)Reducing or terminating the URBAN DEVELOPMENT
determinations,and litigation.Reviews remaining grant of a subrecipient and
to determine compliance with specific reallocating those funds to other 24 CFR Parts 91,582,and 583
requirements of thispart will be subrecipients;and
q (vii)Making matching contributions (Docket No.FR-5333-F-02]
conducted as necessary,with or without before or as draws are made from the
prior notice to the recipient. RIN 2506-AC26
(2)If HUD determines preliminarily recipient's ESG grant.
that the recipient or one of its (2)HUD may change the method of Homeless Emergency Assistance and
subrecipients has not complied with an Payment to a reimbursement basis. Rapid Transition to Housing: Defining
ESG program requirement,HUD will y3)HUD may suspend payments to' Homeless
the extent HUD deems it necessary to
give the recipient notice of this preclude the further expenditure of AGENCY:Office of the Assistant
determination and an opportunity to funds for affected activities. Secretary for Community Planning and
demonstrate,within the time prescribed (4)HUD may remove the recipient . Development,HUD.
by HUD and on the basis of substantial from participation in reallocations of ACTION:Final rule.
facts and data,that the recipient has funds under subpart D of this part.
complied with Emergency Solutions (5)HUD may deny matching credit for SUMMARY:The Homeless Emergency
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
(2) Interest. Interest on debt associated with certain
buildings, equipment and capital improvements are computed in accordance with
paragraph 23 of Attachment B ("Interest") .
(3) Operation and maintenance expenses. The expenses under
this heading are those that have been incurred for the administration,
operation, maintenance, preservation, and protection of the organization's
physical plant. They include expenses normally incurred for such items as:
janitorial and utility services; repairs and ordinary or normal alterations of
buildings, furniture and equipment; care of grounds; maintenance and operation
of buildings and other plant facilities; security; earthquake and disaster
preparedness; environmental safety; hazardous waste disposal; property,
liability and other insurance relating to property; space and capital leasing;
facility planning and management; and, central receiving. The operation and
maintenance expenses category shall also include its allocable share of fringe
benefit costs, depreciation and use allowances, and interest costs.
(4) General administration and general expenses. The expenses
under this heading are those that have been incurred for the overall general
executive and administrative offices of the organization and other expenses of a
general nature which do not relate solely to any major function of the
organization. This category shall also include its allocable share of fringe
benefit costs, operation and maintenance expense, depreciation and use
allowances, and interest costs. Examples of this category include central
offices, such as the director's office, the office of finance, business
services, budget and planning, personnel, safety and risk management, general
counsel, management information systems, and library costs.
In developing this cost pool, special care should be exercised to ensure that
costs incurred for the same purpose in like circumstances are treated
consistently as either direct or indirect costs. For example, salaries of
technical staff, project supplies, project publication, telephone toll charges,
computer costs, travel costs, and specialized services costs shall be treated as
direct costs wherever identifiable to a particular program. The salaries and
wages of administrative and pooled clerical staff should normally be treated as
indirect costs. Direct charging of these costs may be appropriate where a major
project or activity explicitly requires and budgets for administrative or
clerical services and other individuals involved can be identified with the
program or activity. Items such as office supplies, postage, local telephone
costs, periodicals and memberships should normally be treated as indirect costs.
c. Allocation bases. Actual conditions shall be taken into account
in selecting the base to be used in allocating the expenses in each grouping to
benefitting functions. The essential consideration in selecting a method or a
base is that it is the one best suited for assigning the pool of costs to cost
objectives in accordance with benefits derived; a traceable cause and effect
relationship; or logic and reason, where neither the cause nor the effect of the
relationship is determinable. When an allocation can be made by assignment of a
cost grouping directly to the function benefited, the allocation shall be made
in that manner. When the expenses in a cost grouping are more general in nature,
the allocation shall be made through the use of a selected base which produces
results that are equitable to both the Federal Government and the organization.
The distribution shall be made in accordance with the bases described herein
unless it can be demonstrated that the use of. a different base would result in a
more equitable allocation of the costs, or that a more readily available base
would not increase the costs charged to sponsored awards. The results of
12
e or all activities; DEPARTMENT OF HOUSING AND
including citizen comments,complaint (vi)Reducing or terminating the URBAN DEVELOPMENT
determinations,and litigation.Reviews remaining grant of a subrecipient and
to determine compliance with specific reallocating those funds to other 24 CFR Parts 91,582,and 583
requirements of thispart will be subrecipients;and
q (vii)Making matching contributions (Docket No.FR-5333-F-02]
conducted as necessary,with or without before or as draws are made from the
prior notice to the recipient. RIN 2506-AC26
(2)If HUD determines preliminarily recipient's ESG grant.
that the recipient or one of its (2)HUD may change the method of Homeless Emergency Assistance and
subrecipients has not complied with an Payment to a reimbursement basis. Rapid Transition to Housing: Defining
ESG program requirement,HUD will y3)HUD may suspend payments to' Homeless
the extent HUD deems it necessary to
give the recipient notice of this preclude the further expenditure of AGENCY:Office of the Assistant
determination and an opportunity to funds for affected activities. Secretary for Community Planning and
demonstrate,within the time prescribed (4)HUD may remove the recipient . Development,HUD.
by HUD and on the basis of substantial from participation in reallocations of ACTION:Final rule.
facts and data,that the recipient has funds under subpart D of this part.
complied with Emergency Solutions (5)HUD may deny matching credit for SUMMARY:The Homeless Emergency
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
special cost studies (such as an engineering utility study) shall not be used to
determine and allocate the indirect costs to sponsored awards.
(1) Depreciation and use allowances. Depreciation and use
allowances expenses shall be allocated in the following manner:
(a) Depreciation or use allowances on buildings used
exclusively in the conduct of a single function, and on capital improvements and
equipment used in such buildings, shall be assigned to that function.
(b) Depreciation or use allowances on buildings used for
more than one function, and on capital improvements and equipment used in such
buildings, shall be allocated to the individual functions performed in each
building on the basis of usable square feet of space, excluding common areas,
such as hallways, stairwells, and restrooms.
(c) Depreciation or use allowances on buildings, capital
improvements and equipment related space (e.g. , individual rooms, and
laboratories) used jointly by more than one function (as determined by the users
of the space) shall be treated as follows. The cost of each jointly used unit
of space shall be allocated to the benefitting functions on the basis of:
(i) the employees and other users on a full-time
equivalent (FTE) basis or salaries and wages of those individual functions
benefitting from the use of that space; or
(ii) organization-wide employee FTEs or salaries
r and wages applicable to the benefitting functions of the organization.
(d) Depreciation or use allowances on certain capital
improvements to land, such as paved parking areas, fences, sidewalks, and the
like, not included in the cost of buildings, shall be allocated to user
categories on a FTE basis and distributed to major functions in proportion to
the salaries and wages of all employees applicable to the functions.
(2) Interest. Interest costs shall be allocated in the same
manner as the depreciation or use allowances on the buildings, equipment and
capital equipments to which the interest relates.
(3) Operation and maintenance expenses. Operation and
maintenance expenses shall be allocated in the same manner as the depreciation
and use allowances.
(4) General administration and general expenses. General
administration and general expenses shall be allocated to benefitting functions
based on modified total direct costs (MTDC) , as described in subparagraph D.3.f..
The expenses included in this category could be grouped first according to major
functions of the organization to which they render services or provide benefits.
The aggregate expenses of each group shall then be allocated to benefitting
functions based on MTDC.
d. Order of distribution.
(1) Indirect cost categories consisting of depreciation and
use allowances, interest, operation and maintenance, and general administration
13
nefitting functions. The essential consideration in selecting a method or a
base is that it is the one best suited for assigning the pool of costs to cost
objectives in accordance with benefits derived; a traceable cause and effect
relationship; or logic and reason, where neither the cause nor the effect of the
relationship is determinable. When an allocation can be made by assignment of a
cost grouping directly to the function benefited, the allocation shall be made
in that manner. When the expenses in a cost grouping are more general in nature,
the allocation shall be made through the use of a selected base which produces
results that are equitable to both the Federal Government and the organization.
The distribution shall be made in accordance with the bases described herein
unless it can be demonstrated that the use of. a different base would result in a
more equitable allocation of the costs, or that a more readily available base
would not increase the costs charged to sponsored awards. The results of
12
e or all activities; DEPARTMENT OF HOUSING AND
including citizen comments,complaint (vi)Reducing or terminating the URBAN DEVELOPMENT
determinations,and litigation.Reviews remaining grant of a subrecipient and
to determine compliance with specific reallocating those funds to other 24 CFR Parts 91,582,and 583
requirements of thispart will be subrecipients;and
q (vii)Making matching contributions (Docket No.FR-5333-F-02]
conducted as necessary,with or without before or as draws are made from the
prior notice to the recipient. RIN 2506-AC26
(2)If HUD determines preliminarily recipient's ESG grant.
that the recipient or one of its (2)HUD may change the method of Homeless Emergency Assistance and
subrecipients has not complied with an Payment to a reimbursement basis. Rapid Transition to Housing: Defining
ESG program requirement,HUD will y3)HUD may suspend payments to' Homeless
the extent HUD deems it necessary to
give the recipient notice of this preclude the further expenditure of AGENCY:Office of the Assistant
determination and an opportunity to funds for affected activities. Secretary for Community Planning and
demonstrate,within the time prescribed (4)HUD may remove the recipient . Development,HUD.
by HUD and on the basis of substantial from participation in reallocations of ACTION:Final rule.
facts and data,that the recipient has funds under subpart D of this part.
complied with Emergency Solutions (5)HUD may deny matching credit for SUMMARY:The Homeless Emergency
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
•
and general expenses shall be allocated in that order to the remaining indirect
cost categories as well as to the major functions of the organization. Other
cost categories could be allocated in the order determined to be most
appropriate by the organization. When cross allocation of costs is made as
provided in subparagraph (2) , this order of allocation does not apply.
(2) Normally, an indirect cost category will be considered
closed once it has been allocated to other cost objectives, and costs shall not
be subsequently allocated to it. However, a cross allocation of costs between
two or more indirect costs categories could be used if such allocation will
result in a more equitable allocation of costs. If a cross allocation is used,
an appropriate modification to the composition of the indirect cost categories
is required.
e. Application of indirect cost rate or rates. Except where a
special indirect cost rate(s) is required in accordance with subparagraph D.5,
the separate groupings of indirect costs allocated to each major function shall
be aggregated and treated as a common pool for that function. The costs in the
common pool shall then be distributed to individual awards included in that
function by use of a single indirect cost rate.
f. Distribution basis. Indirect costs shall be distributed to
applicable sponsored awards and other benefitting activities within each major
function on the basis of MTDC. MTDC consists of all salaries and wages, fringe
benefits, materials and supplies, services, travel, and subgrants and
subcontracts up to the first $25,000 of each subgrant or subcontract (regardless
of the period covered by the subgrant or subcontract) . Equipment, capital
expenditures, charges for patient care, rental costs and the portion in excess
of $25,000 shall be excluded from MTDC. Participant support costs shall
generally be excluded from MTDC. Other items may only be excluded when the
Federal cost cognizant agency determines that an exclusion is necessary to avoid
a serious inequity in the distribution of indirect costs.
g. Individual Rate Components. An indirect cost rate shall be
determined for each separate indirect cost pool developed. The rate in each
case shall be stated as the percentage which the amount of the particular
indirect cost pool is of the distribution base identified with that pool. Each
indirect cost rate negotiation or determination agreement shall include
development of the rate for each indirect cost pool as well as the overall
indirect cost rate. The indirect cost pools shall be classified within two
broad categories: "Facilities" and "Administration, " as described in
subparagraph C.3 .
4 . Direct allocation method.
a. Some non-profit organizations treat all costs as direct costs
except general administration and general expenses. These organizations
generally separate their costs into three basic categories: (i) General
administration and general expenses, (ii) fundraising, and (iii) other direct
functions (including projects performed under Federal awards) . Joint costs,
such as depreciation, rental costs, operation and maintenance of facilities,
telephone expenses, and the like are prorated individually as direct costs to
each category and to each award or other activity using a base most appropriate
to the particular cost being prorated.
b. This method is acceptable, provided each joint cost is prorated
using a base which accurately measures the benefits provided to each award or
14
The distribution shall be made in accordance with the bases described herein
unless it can be demonstrated that the use of. a different base would result in a
more equitable allocation of the costs, or that a more readily available base
would not increase the costs charged to sponsored awards. The results of
12
e or all activities; DEPARTMENT OF HOUSING AND
including citizen comments,complaint (vi)Reducing or terminating the URBAN DEVELOPMENT
determinations,and litigation.Reviews remaining grant of a subrecipient and
to determine compliance with specific reallocating those funds to other 24 CFR Parts 91,582,and 583
requirements of thispart will be subrecipients;and
q (vii)Making matching contributions (Docket No.FR-5333-F-02]
conducted as necessary,with or without before or as draws are made from the
prior notice to the recipient. RIN 2506-AC26
(2)If HUD determines preliminarily recipient's ESG grant.
that the recipient or one of its (2)HUD may change the method of Homeless Emergency Assistance and
subrecipients has not complied with an Payment to a reimbursement basis. Rapid Transition to Housing: Defining
ESG program requirement,HUD will y3)HUD may suspend payments to' Homeless
the extent HUD deems it necessary to
give the recipient notice of this preclude the further expenditure of AGENCY:Office of the Assistant
determination and an opportunity to funds for affected activities. Secretary for Community Planning and
demonstrate,within the time prescribed (4)HUD may remove the recipient . Development,HUD.
by HUD and on the basis of substantial from participation in reallocations of ACTION:Final rule.
facts and data,that the recipient has funds under subpart D of this part.
complied with Emergency Solutions (5)HUD may deny matching credit for SUMMARY:The Homeless Emergency
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
other activity. The bases must be established in accordance with reasonable
criteria, and be supported by current data. This method is compatible with the
Standards of Accounting and Financial Reporting for. Voluntary Health and Welfare
Organizations issued jointly by the National Health Council, Inc. , the National
Assembly of Voluntary Health and Social Welfare Organizations, and the United
Way of America.
c. Under this method, indirect costs consist exclusively of general
administration and general expenses. In all other respects, the organization's
indirect cost rates shall be computed in the same manner as that described in
subparagraph 2.
5. Special indirect cost rates. In some instances, a single indirect
cost rate for all activities of an organization or for each major function of
the organization may not be appropriate, since it would not take into account
those different factors which may substantially affect the indirect costs
applicable to a particular segment of work. For this purpose, a particular
segment of work may be that performed under a single award or it may consist of
work under a group of awards performed in a common environment. These factors
may include the physical location of the work, the level of administrative
support required, the nature of the facilities or other resources employed, the
scientific disciplines or technical skills involved, the organizational
arrangements used, or any combination thereof. When a particular segment of
work is performed in an environment which appears to generate a significantly
different level of indirect costs, provisions should be made for a separate
indirect cost pool applicable to such work. The separate indirect cost pool
should be developed during the course of the regular allocation process, and the
separate indirect cost rate resulting therefrom should be used, provided it is
determined that (i) the rate differs significantly from that which would have
been obtained under subparagraphs 2, 3, and 4, and (ii) the volume of work to
which the rate would apply is material.
E. Negotiation and Approval of Indirect Cost Rates
1. Definitions. As used in this section, the following terms have the
meanings set
forth below:
a. Cognizant agency means the Federal agency responsible for
negotiating and approving indirect cost rates for a non-profit organization on
behalf of all Federal agencies.
b. Predetermined rate means an indirect cost rate, applicable to a
specified current or future period, usually the organization's fiscal year. The
rate is based on an estimate of the costs to be incurred during the period. A
predetermined rate is not subject to adjustment.
c. Fixed rate means an indirect cost rate which has the same
characteristics as a predetermined rate, except that the difference between the
estimated costs and the actual costs of the period covered by the rate is
carried forward as an adjustment to the rate computation of a subsequent period.
d. Final rate means an indirect cost rate applicable to a specified
past period which is based on the actual costs of the period. A final rate is
not subject to adjustment.
15
f facilities,
telephone expenses, and the like are prorated individually as direct costs to
each category and to each award or other activity using a base most appropriate
to the particular cost being prorated.
b. This method is acceptable, provided each joint cost is prorated
using a base which accurately measures the benefits provided to each award or
14
The distribution shall be made in accordance with the bases described herein
unless it can be demonstrated that the use of. a different base would result in a
more equitable allocation of the costs, or that a more readily available base
would not increase the costs charged to sponsored awards. The results of
12
e or all activities; DEPARTMENT OF HOUSING AND
including citizen comments,complaint (vi)Reducing or terminating the URBAN DEVELOPMENT
determinations,and litigation.Reviews remaining grant of a subrecipient and
to determine compliance with specific reallocating those funds to other 24 CFR Parts 91,582,and 583
requirements of thispart will be subrecipients;and
q (vii)Making matching contributions (Docket No.FR-5333-F-02]
conducted as necessary,with or without before or as draws are made from the
prior notice to the recipient. RIN 2506-AC26
(2)If HUD determines preliminarily recipient's ESG grant.
that the recipient or one of its (2)HUD may change the method of Homeless Emergency Assistance and
subrecipients has not complied with an Payment to a reimbursement basis. Rapid Transition to Housing: Defining
ESG program requirement,HUD will y3)HUD may suspend payments to' Homeless
the extent HUD deems it necessary to
give the recipient notice of this preclude the further expenditure of AGENCY:Office of the Assistant
determination and an opportunity to funds for affected activities. Secretary for Community Planning and
demonstrate,within the time prescribed (4)HUD may remove the recipient . Development,HUD.
by HUD and on the basis of substantial from participation in reallocations of ACTION:Final rule.
facts and data,that the recipient has funds under subpart D of this part.
complied with Emergency Solutions (5)HUD may deny matching credit for SUMMARY:The Homeless Emergency
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
e. Provisional rate or billing rate means a temporary indirect cost
rate applicable to a specified period which is used for funding, interim
reimbursement, and reporting indirect costs on awards pending the establishment
of a final rate for the period.
f. Indirect cost proposal means the documentation prepared by an
organization to substantiate its claim for the reimbursement of indirect costs.
This proposal provides the basis for the review and negotiation leading to the
establishment of an organization's indirect cost rate.
g. Cost objective means a function, organizational subdivision,
contract, grant, or other work unit for which cost data are desired and for
which provision is made to accumulate and measure the cost of processes,
projects, jobs and capitalized projects.
2. Negotiation and approval of rates.
a. Unless different arrangements are agreed to by the agencies
concerned, the Federal agency with the largest dollar value of awards with an
organization will be designated as the cognizant agency for the negotiation and
approval of the indirect cost rates and, where necessary, other rates such as
fringe benefit and computer charge-out ,rates. Once an agency is assigned
cognizance for a particular non-profit organization, the assignment will not be
changed unless there is a major long-term shift in the dollar volume of the
Federal awards to the organization. All concerned Federal agencies shall be
given the opportunity to participate in the negotiation process but, after a
rate has been agreed upon, it will be accepted by all Federal agencies. When a
Federal agency has reason to believe that special operating factors affecting
its awards necessitate special indirect cost rates in accordance with
subparagraph D.5, it will, prior to the time the rates are negotiated, notify
the cognizant agency.
b. A non-profit organization which has not previously established
an indirect cost rate with a Federal agency shall submit its initial indirect
cost proposal immediately after the organization is advised that an award will
be made and, in no event, later than three months after the effective date of
the award.
c. Organizations that have previously established indirect cost
rates must submit a new indirect cost proposal to the cognizant agency within
six months after the close of each fiscal year.
d. A predetermined rate may be negotiated for use on awards where
there is reasonable assurance, based on past experience and reliable projection
of the organization's costs, that the rate is not likely to exceed a rate based
on the organization's actual costs.
e. Fixed rates may be negotiated where. predetermined rates are not
considered appropriate. A fixed rate, however, shall not be negotiated if (i)
all or a substantial portion of the organization's awards are expected to expire
before the carry-forward adjustment can be made; (ii) the mix of Federal and
non-Federal work at the organization is too erratic to permit an equitable
carry-forward adjustment; or (iii) the organization's operations fluctuate
significantly from year to year.
f. Provisional and final rates shall be negotiated where neither
predetermined nor fixed rates are appropriate.
16
and the like are prorated individually as direct costs to
each category and to each award or other activity using a base most appropriate
to the particular cost being prorated.
b. This method is acceptable, provided each joint cost is prorated
using a base which accurately measures the benefits provided to each award or
14
The distribution shall be made in accordance with the bases described herein
unless it can be demonstrated that the use of. a different base would result in a
more equitable allocation of the costs, or that a more readily available base
would not increase the costs charged to sponsored awards. The results of
12
e or all activities; DEPARTMENT OF HOUSING AND
including citizen comments,complaint (vi)Reducing or terminating the URBAN DEVELOPMENT
determinations,and litigation.Reviews remaining grant of a subrecipient and
to determine compliance with specific reallocating those funds to other 24 CFR Parts 91,582,and 583
requirements of thispart will be subrecipients;and
q (vii)Making matching contributions (Docket No.FR-5333-F-02]
conducted as necessary,with or without before or as draws are made from the
prior notice to the recipient. RIN 2506-AC26
(2)If HUD determines preliminarily recipient's ESG grant.
that the recipient or one of its (2)HUD may change the method of Homeless Emergency Assistance and
subrecipients has not complied with an Payment to a reimbursement basis. Rapid Transition to Housing: Defining
ESG program requirement,HUD will y3)HUD may suspend payments to' Homeless
the extent HUD deems it necessary to
give the recipient notice of this preclude the further expenditure of AGENCY:Office of the Assistant
determination and an opportunity to funds for affected activities. Secretary for Community Planning and
demonstrate,within the time prescribed (4)HUD may remove the recipient . Development,HUD.
by HUD and on the basis of substantial from participation in reallocations of ACTION:Final rule.
facts and data,that the recipient has funds under subpart D of this part.
complied with Emergency Solutions (5)HUD may deny matching credit for SUMMARY:The Homeless Emergency
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
g. The results of each negotiation shall be formalized in a written ,
agreement between the cognizant agency and the non-profit organization. The
cognizant agency shall distribute copies of the agreement to all conderned
Federal agencies.
h. If a dispute arises in a negotiation of an indirect cost rate
between the cognizant agency and the non-profit organization, the dispute shall
be resolved in accordance with the appeals procedures of the cognizant agency.
i. To the extent that problems are encountered among the Federal
agencies in connection with the negotiation and approval process, OMB will lend
assistance as required to resolve such problems in a timely manner.
17
1 ` p \�_
fl700-res
aermaz
By ci1member
Adopted S. 1. 12012 •
C• Clerk
Approved... .
Mayor
treets
ATTACHMENT B
Circular No. A-122
SELECTED ITEMS OF COST
Table of Contents
1. Advertising and public relations costs
2. Advisory councils
3. Alcoholic beverages
4. Audit costs and related services
5. Bad debts
6. Bonding costs
7. Communication costs
8 Compensation for personal services
9. Contingency provisions
10. Defense and prosecution of criminal and civil proceedings, claims, appeals
and patent infringement
11. Depreciation and use allowances
12. Donations and contributions
13. Employee morale, health, and welfare costs
14. Entertainment costs
15. Equipment and other capital expenditures
16. Fines and penalties
17. Fund raising and investment management costs
18. Gains and losses on depreciable assets
19. Goods or services for personal use
20. Housing and personal living expenses
21. Idle facilities and idle capacity
22 . Insurance and indemnification
23 . Interest
24. Labor relations costs
25. Lobbying
26. Losses on other sponsored agreements or contracts
27. Maintenance and repair costs
28. Materials and supplies costs
29. Meetings and conferences
30. Memberships, subscriptions, and professional activity costs
31. Organization costs
32. Page charges in professional journals
33 . Participant support costs
34. Patent costs
35. Plant and homeland security costs
36. Pre-agreement costs
37. Professional services costs
38. Publication and printing costs
39. Rearrangement and alteration costs
40. Reconversion costs
41. Recruiting costs
42. Relocation costs
43. Rental costs of buildings and equipment
44. Royalties and other costs for use of patents and copyrights
45. Selling and marketing
46. Specialized service facilities
47. Taxes
48. Termination costs applicable to sponsored agreements
18
later than three months after the effective date of
the award.
c. Organizations that have previously established indirect cost
rates must submit a new indirect cost proposal to the cognizant agency within
six months after the close of each fiscal year.
d. A predetermined rate may be negotiated for use on awards where
there is reasonable assurance, based on past experience and reliable projection
of the organization's costs, that the rate is not likely to exceed a rate based
on the organization's actual costs.
e. Fixed rates may be negotiated where. predetermined rates are not
considered appropriate. A fixed rate, however, shall not be negotiated if (i)
all or a substantial portion of the organization's awards are expected to expire
before the carry-forward adjustment can be made; (ii) the mix of Federal and
non-Federal work at the organization is too erratic to permit an equitable
carry-forward adjustment; or (iii) the organization's operations fluctuate
significantly from year to year.
f. Provisional and final rates shall be negotiated where neither
predetermined nor fixed rates are appropriate.
16
and the like are prorated individually as direct costs to
each category and to each award or other activity using a base most appropriate
to the particular cost being prorated.
b. This method is acceptable, provided each joint cost is prorated
using a base which accurately measures the benefits provided to each award or
14
The distribution shall be made in accordance with the bases described herein
unless it can be demonstrated that the use of. a different base would result in a
more equitable allocation of the costs, or that a more readily available base
would not increase the costs charged to sponsored awards. The results of
12
e or all activities; DEPARTMENT OF HOUSING AND
including citizen comments,complaint (vi)Reducing or terminating the URBAN DEVELOPMENT
determinations,and litigation.Reviews remaining grant of a subrecipient and
to determine compliance with specific reallocating those funds to other 24 CFR Parts 91,582,and 583
requirements of thispart will be subrecipients;and
q (vii)Making matching contributions (Docket No.FR-5333-F-02]
conducted as necessary,with or without before or as draws are made from the
prior notice to the recipient. RIN 2506-AC26
(2)If HUD determines preliminarily recipient's ESG grant.
that the recipient or one of its (2)HUD may change the method of Homeless Emergency Assistance and
subrecipients has not complied with an Payment to a reimbursement basis. Rapid Transition to Housing: Defining
ESG program requirement,HUD will y3)HUD may suspend payments to' Homeless
the extent HUD deems it necessary to
give the recipient notice of this preclude the further expenditure of AGENCY:Office of the Assistant
determination and an opportunity to funds for affected activities. Secretary for Community Planning and
demonstrate,within the time prescribed (4)HUD may remove the recipient . Development,HUD.
by HUD and on the basis of substantial from participation in reallocations of ACTION:Final rule.
facts and data,that the recipient has funds under subpart D of this part.
complied with Emergency Solutions (5)HUD may deny matching credit for SUMMARY:The Homeless Emergency
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
49. Training costs
50. Transportation costs
51. Travel costs
52. Trustees
19
non-profit organization. The
cognizant agency shall distribute copies of the agreement to all conderned
Federal agencies.
h. If a dispute arises in a negotiation of an indirect cost rate
between the cognizant agency and the non-profit organization, the dispute shall
be resolved in accordance with the appeals procedures of the cognizant agency.
i. To the extent that problems are encountered among the Federal
agencies in connection with the negotiation and approval process, OMB will lend
assistance as required to resolve such problems in a timely manner.
17
1 ` p \�_
fl700-res
aermaz
By ci1member
Adopted S. 1. 12012 •
C• Clerk
Approved... .
Mayor
treets
ATTACHMENT B
Circular No. A-122
SELECTED ITEMS OF COST
Paragraphs 1 through 53 provide principles to be applied in establishing the
allowability of certain items of cost. These principles apply whether a cost is
treated as direct or indirect. Failure to mention a particular item of cost is
not intended to imply that it is unallowable; rather, determination as to
allowability in each case should be based on the treatment or principles
provided for similar or related items of cost.
1. Advertising and public relations costs.
a. The term advertising costs means the costs of advertising media and
corollary administrative costs. Advertising media include magazines,
newspapers, radio and television, direct mail, exhibits, electronic or computer
transmittals, and the like.
b. The term public relations includes community relations and means those
activities dedicated to maintaining the image of the non-profit organization or
maintaining or promoting understanding and favorable relations with the
community or public at large or any segment of the public.
c. The only allowable advertising costs are those which are solely for:
(1) The recruitment of personnel required for the performance by the
non-profit organization of obligations arising under a Federal award (See also
Attachment B, paragraph 41, Recruiting costs, and paragraph 42, Relocation
costs) ;
(2) The procurement of goods and services for the performance of a
Federal award;
(3) The disposal of scrap or surplus materials acquired in the
performance of a Federal award except when non-profit organizations are
reimbursed for disposal costs at a predetermined amount; or
(4) Other specific purposes necessary to meet the requirements of
the Federal award.
d. The only allowable public relations costs are:
(1) Costs specifically required by the Federal award;
(2) Costs of communicating with the public and press pertaining to
specific activities or accomplishments which result from performance of Federal
awards (these costs are considered necessary as part of the outreach effort for
the Federal award) ; or
(3) Costs of conducting general liaison with news media and
government public relations officers, to the extent that such activities are
limited to communication and liaison necessary keep the public informed on
matters of public concern, such as notices of Federal contract/grant awards,
financial matters, etc.
20
nce, based on past experience and reliable projection
of the organization's costs, that the rate is not likely to exceed a rate based
on the organization's actual costs.
e. Fixed rates may be negotiated where. predetermined rates are not
considered appropriate. A fixed rate, however, shall not be negotiated if (i)
all or a substantial portion of the organization's awards are expected to expire
before the carry-forward adjustment can be made; (ii) the mix of Federal and
non-Federal work at the organization is too erratic to permit an equitable
carry-forward adjustment; or (iii) the organization's operations fluctuate
significantly from year to year.
f. Provisional and final rates shall be negotiated where neither
predetermined nor fixed rates are appropriate.
16
and the like are prorated individually as direct costs to
each category and to each award or other activity using a base most appropriate
to the particular cost being prorated.
b. This method is acceptable, provided each joint cost is prorated
using a base which accurately measures the benefits provided to each award or
14
The distribution shall be made in accordance with the bases described herein
unless it can be demonstrated that the use of. a different base would result in a
more equitable allocation of the costs, or that a more readily available base
would not increase the costs charged to sponsored awards. The results of
12
e or all activities; DEPARTMENT OF HOUSING AND
including citizen comments,complaint (vi)Reducing or terminating the URBAN DEVELOPMENT
determinations,and litigation.Reviews remaining grant of a subrecipient and
to determine compliance with specific reallocating those funds to other 24 CFR Parts 91,582,and 583
requirements of thispart will be subrecipients;and
q (vii)Making matching contributions (Docket No.FR-5333-F-02]
conducted as necessary,with or without before or as draws are made from the
prior notice to the recipient. RIN 2506-AC26
(2)If HUD determines preliminarily recipient's ESG grant.
that the recipient or one of its (2)HUD may change the method of Homeless Emergency Assistance and
subrecipients has not complied with an Payment to a reimbursement basis. Rapid Transition to Housing: Defining
ESG program requirement,HUD will y3)HUD may suspend payments to' Homeless
the extent HUD deems it necessary to
give the recipient notice of this preclude the further expenditure of AGENCY:Office of the Assistant
determination and an opportunity to funds for affected activities. Secretary for Community Planning and
demonstrate,within the time prescribed (4)HUD may remove the recipient . Development,HUD.
by HUD and on the basis of substantial from participation in reallocations of ACTION:Final rule.
facts and data,that the recipient has funds under subpart D of this part.
complied with Emergency Solutions (5)HUD may deny matching credit for SUMMARY:The Homeless Emergency
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
•
•
e. Costs identified in subparagraphs c and d if incurred for more than
one Federal award or for both sponsored work and other work of the non-profit
organization, are allowable to the extent that the principles in Attachment. A,
paragraphs B. ("Direct Costs") and C. ("Indirect Costs") are observed.
f. Unallowable advertising and public relations costs include the
following:
(1) All advertising and public relations costs other than as
specified in subparagraphs c, d, and e;
(2) Costs of meetings, conventions, convocations, or other events
related to other activities of the non-profit organization, including:
(a) Costs of displays, demonstrations, and exhibits;
(b) Costs of meeting rooms, hospitality suites, and other
special facilities used in conjunction with shows and other special events; and
(c) Salaries and wages of employees engaged in setting up and
displaying exhibits, making demonstrations, and providing briefings;
(3) Costs of promotional items and memorabilia, including models,
gifts, and souvenirs;
(4) Costs of advertising and public relations designed solely to
promote the non-profit organization.
2. Advisory Councils
Costs incurred by advisory councils or committees are allowable as a direct cost
where authorized by the Federal awarding agency or as an indirect cost where
allocable to Federal awards.
3 . Alcoholic beverages. Costs of alcoholic beverages are unallowable.
4. Audit costs and related services
a The costs of audits required by , and performed in accordance with, the
Single Audit Act, as implemented by Circular A-133, "Audits of States, Local
Governments, and Non-Profit Organizations" are allowable. Also see 31 USC
7505 (b) and section 230 ("Audit Costs") of Circular A-133.
b. Other audit costs are allowable if included in an indirect cost rate
proposal, or if specifically approved by the awarding agency as a direct cost to
an award.
c. The cost of agreed-upon procedures engagements to monitor subrecipients who
are exempted from A-133 under section 200(d) are allowable, subject to the
conditions listed in A-133, section 230 (b) (2) .
21
media and
government public relations officers, to the extent that such activities are
limited to communication and liaison necessary keep the public informed on
matters of public concern, such as notices of Federal contract/grant awards,
financial matters, etc.
20
nce, based on past experience and reliable projection
of the organization's costs, that the rate is not likely to exceed a rate based
on the organization's actual costs.
e. Fixed rates may be negotiated where. predetermined rates are not
considered appropriate. A fixed rate, however, shall not be negotiated if (i)
all or a substantial portion of the organization's awards are expected to expire
before the carry-forward adjustment can be made; (ii) the mix of Federal and
non-Federal work at the organization is too erratic to permit an equitable
carry-forward adjustment; or (iii) the organization's operations fluctuate
significantly from year to year.
f. Provisional and final rates shall be negotiated where neither
predetermined nor fixed rates are appropriate.
16
and the like are prorated individually as direct costs to
each category and to each award or other activity using a base most appropriate
to the particular cost being prorated.
b. This method is acceptable, provided each joint cost is prorated
using a base which accurately measures the benefits provided to each award or
14
The distribution shall be made in accordance with the bases described herein
unless it can be demonstrated that the use of. a different base would result in a
more equitable allocation of the costs, or that a more readily available base
would not increase the costs charged to sponsored awards. The results of
12
e or all activities; DEPARTMENT OF HOUSING AND
including citizen comments,complaint (vi)Reducing or terminating the URBAN DEVELOPMENT
determinations,and litigation.Reviews remaining grant of a subrecipient and
to determine compliance with specific reallocating those funds to other 24 CFR Parts 91,582,and 583
requirements of thispart will be subrecipients;and
q (vii)Making matching contributions (Docket No.FR-5333-F-02]
conducted as necessary,with or without before or as draws are made from the
prior notice to the recipient. RIN 2506-AC26
(2)If HUD determines preliminarily recipient's ESG grant.
that the recipient or one of its (2)HUD may change the method of Homeless Emergency Assistance and
subrecipients has not complied with an Payment to a reimbursement basis. Rapid Transition to Housing: Defining
ESG program requirement,HUD will y3)HUD may suspend payments to' Homeless
the extent HUD deems it necessary to
give the recipient notice of this preclude the further expenditure of AGENCY:Office of the Assistant
determination and an opportunity to funds for affected activities. Secretary for Community Planning and
demonstrate,within the time prescribed (4)HUD may remove the recipient . Development,HUD.
by HUD and on the basis of substantial from participation in reallocations of ACTION:Final rule.
facts and data,that the recipient has funds under subpart D of this part.
complied with Emergency Solutions (5)HUD may deny matching credit for SUMMARY:The Homeless Emergency
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
5. Bad debts. Bad debts, including losses (whether actual or estimated)
arising from uncollectable accounts and other claims, related collection costs,
and related legal costs, are unallowable.
6 . Bonding costs.
a. Bonding costs arise when the Federal Government requires assurance
against financial loss to itself or others by reason of the act or default of
the non-profit organization. They arise also in instances where the non-profit
organization requires similar assurance. Included are such bonds as bid,
performance, payment, advance payment, infringement, and fidelity bonds.
b. Costs of bonding required pursuant to the terms of the award are
allowable.
c. Costs of bonding required by the non-profit organization in the
general conduct of its operations are allowable to the extent that such bonding
is in accordance with sound business practice and the rates and premiums are
reasonable under the circumstances.
7 . Communication costs. Costs incurred for telephone services, local and long
distance telephone calls, telegrams, postage, messenger, electronic or computer
transmittal services and the like are allowable.
8 . Compensation for personal services.
a. Definition. Compensation for personal services includes all
compensation paid currently or accrued by the organization for services of
employees rendered during the period of the award (except as otherwise provided
in subparagraph h) . It includes, but is not limited to, salaries, wages,
director's and executive committee member's fees, incentive awards, fringe
benefits, pension plan costs, allowances for off-site pay, incentive pay,
location allowances, hardship pay, and cost of living differentials.
b. Allowability. Except as otherwise specifically provided in this
paragraph, the costs of such compensation are allowable to the extent that:
(1) Total compensation to individual employees is reasonable for the
services rendered and conforms to the established policy of the organization
consistently applied to both Federal and non-Federal activities; and
(2) Charges to awards whether treated as direct or indirect costs
are determined and supported as required in this paragraph.
c. Reasonableness.
(1) When the organization is predominantly engaged in activities
other than those sponsored by the Federal Government, compensation for employees
on federally-sponsored work will be considered reasonable to the extent that it
is consistent with that paid for similar work in the organization's other
activities.
(2) When the organization is predominantly engaged in federally-
sponsored activities and in cases where the kind of employees required for the
Federal activities are not found in the organization's other activities,
22
t be negotiated if (i)
all or a substantial portion of the organization's awards are expected to expire
before the carry-forward adjustment can be made; (ii) the mix of Federal and
non-Federal work at the organization is too erratic to permit an equitable
carry-forward adjustment; or (iii) the organization's operations fluctuate
significantly from year to year.
f. Provisional and final rates shall be negotiated where neither
predetermined nor fixed rates are appropriate.
16
and the like are prorated individually as direct costs to
each category and to each award or other activity using a base most appropriate
to the particular cost being prorated.
b. This method is acceptable, provided each joint cost is prorated
using a base which accurately measures the benefits provided to each award or
14
The distribution shall be made in accordance with the bases described herein
unless it can be demonstrated that the use of. a different base would result in a
more equitable allocation of the costs, or that a more readily available base
would not increase the costs charged to sponsored awards. The results of
12
e or all activities; DEPARTMENT OF HOUSING AND
including citizen comments,complaint (vi)Reducing or terminating the URBAN DEVELOPMENT
determinations,and litigation.Reviews remaining grant of a subrecipient and
to determine compliance with specific reallocating those funds to other 24 CFR Parts 91,582,and 583
requirements of thispart will be subrecipients;and
q (vii)Making matching contributions (Docket No.FR-5333-F-02]
conducted as necessary,with or without before or as draws are made from the
prior notice to the recipient. RIN 2506-AC26
(2)If HUD determines preliminarily recipient's ESG grant.
that the recipient or one of its (2)HUD may change the method of Homeless Emergency Assistance and
subrecipients has not complied with an Payment to a reimbursement basis. Rapid Transition to Housing: Defining
ESG program requirement,HUD will y3)HUD may suspend payments to' Homeless
the extent HUD deems it necessary to
give the recipient notice of this preclude the further expenditure of AGENCY:Office of the Assistant
determination and an opportunity to funds for affected activities. Secretary for Community Planning and
demonstrate,within the time prescribed (4)HUD may remove the recipient . Development,HUD.
by HUD and on the basis of substantial from participation in reallocations of ACTION:Final rule.
facts and data,that the recipient has funds under subpart D of this part.
complied with Emergency Solutions (5)HUD may deny matching credit for SUMMARY:The Homeless Emergency
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
compensation for employees on federally-sponsored work will be considered
reasonable to the extent that it is comparable to that paid for similar work in
the labor markets in which the organization competes for the kind of employees
involved.
d. Special considerations in determining allowability. Certain
conditions require special consideration and possible limitations in determining
costs under Federal awards where amounts or types of compensation appear.
unreasonable. Among such conditions are the following:
(1) Compensation to members of non-profit organizations, trustees,
directors, associates, officers, or the immediate families thereof.
Determination should be made that such compensation is reasonable for the actual
personal services rendered rather than a distribution of earnings in excess of
costs.
(2) Any change in an organization's compensation policy resulting in
a substantial increase in the organization's level of compensation, particularly
when it was concurrent with an increase in the ratio of Federal awards to other
activities of the organization or any change in the treatment of allowability of
specific types of compensation due to changes in .Federal policy.
e. Unallowable costs. Costs which are unallowable under other paragraphs
of this Attachment shall not be allowable under this paragraph solely on the
basis that they constitute personal compensation.
f. Overtime, extra-pay shift, and multi-shift premiums. Premiums for
overtime, extra-pay shifts, and multi-shift work are allowable only with the
prior approval of the awarding agency except:
(1) When necessary to cope with emergencies, such as those resulting
from accidents, natural disasters, breakdowns of equipment, or occasional
operational bottlenecks of a sporadic nature.
(2) When employees are performing indirect functions, such as
administration, maintenance, or accounting.
(3) In the performance of tests, laboratory procedures, or other
similar operations which are continuous in nature and cannot reasonably be
interrupted or otherwise completed.
(4) When lower overall cost to the Federal Government will result.
g. Fringe benefits.
(1) Fringe benefits in the form of regular compensation paid to
employees during periods of authorized absences from the job, such as vacation
leave, sick leave, military leave, and the like, are allowable, provided such
costs are absorbed by all organization activities in proportion to the relative
amount of time or effort actually devoted to each.
(2) Fringe benefits in the form of employer contributions or
expenses for social security, employee insurance, workmen's compensation
insurance, pension plan costs (see subparagraph h) , and the like, are allowable,
provided such benefits are granted in accordance with established written
organization policies. Such benefits whether treated as indirect costs or as
direct costs, shall be distributed to particular awards and other activities in
23
too erratic to permit an equitable
carry-forward adjustment; or (iii) the organization's operations fluctuate
significantly from year to year.
f. Provisional and final rates shall be negotiated where neither
predetermined nor fixed rates are appropriate.
16
and the like are prorated individually as direct costs to
each category and to each award or other activity using a base most appropriate
to the particular cost being prorated.
b. This method is acceptable, provided each joint cost is prorated
using a base which accurately measures the benefits provided to each award or
14
The distribution shall be made in accordance with the bases described herein
unless it can be demonstrated that the use of. a different base would result in a
more equitable allocation of the costs, or that a more readily available base
would not increase the costs charged to sponsored awards. The results of
12
e or all activities; DEPARTMENT OF HOUSING AND
including citizen comments,complaint (vi)Reducing or terminating the URBAN DEVELOPMENT
determinations,and litigation.Reviews remaining grant of a subrecipient and
to determine compliance with specific reallocating those funds to other 24 CFR Parts 91,582,and 583
requirements of thispart will be subrecipients;and
q (vii)Making matching contributions (Docket No.FR-5333-F-02]
conducted as necessary,with or without before or as draws are made from the
prior notice to the recipient. RIN 2506-AC26
(2)If HUD determines preliminarily recipient's ESG grant.
that the recipient or one of its (2)HUD may change the method of Homeless Emergency Assistance and
subrecipients has not complied with an Payment to a reimbursement basis. Rapid Transition to Housing: Defining
ESG program requirement,HUD will y3)HUD may suspend payments to' Homeless
the extent HUD deems it necessary to
give the recipient notice of this preclude the further expenditure of AGENCY:Office of the Assistant
determination and an opportunity to funds for affected activities. Secretary for Community Planning and
demonstrate,within the time prescribed (4)HUD may remove the recipient . Development,HUD.
by HUD and on the basis of substantial from participation in reallocations of ACTION:Final rule.
facts and data,that the recipient has funds under subpart D of this part.
complied with Emergency Solutions (5)HUD may deny matching credit for SUMMARY:The Homeless Emergency
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
a manner consistent with the pattern of benefits accruing to the individuals or
group of employees whose salaries and wages are chargeable to such awards and
other activities.
(3) (a) Provisions for a reserve under a self-insurance program
for unemployment compensation or workers' compensation are allowable to the
extent that the provisions represent reasonable estimates of the liabilities for
such compensation, and the types of coverage, extent of coverage, and rates and
premiums would have been allowable had insurance been purchased to cover the
risks. However, provisions for self-insured liabilities which do not become
payable for more than one year after the provision is made shall not exceed the
present value of the liability.
(b) Where an organization follows a consistent policy of
expensing actual payments to, or on behalf of, employees or former employees for
unemployment compensation or workers' compensation, such payments are allowable
in the year of payment with the prior approval of the awarding agency, provided
they are allocated to all activities of the'organization.
(4) Costs of insurance on the lives of trustees, officers, or other
employees holding positions of similar responsibility are allowable only to the
extent that the insurance represents additional compensation. The costs of such
insurance when the organization is named as beneficiary are unallowable.
h. Organization-furnished automobiles. That portion of the cost of
organization-furnished automobiles that relates to personal use by employees
(including transportation to and from work) is unallowable as fringe benefit or
indirect costs regardless of whether the cost is reported as taxable income to
the employees. These costs are allowable as direct costs to sponsored award
when necessary for the performance of the sponsored award and approved by
awarding agencies.
i. Pension plan costs.
(1) Costs of the organization's pension plan which are incurred in
accordance with the established policies of the organization are allowable,
provided:
(a) Such policies meet the test of reasonableness;
(b) The methods of cost allocation are not discriminatory;
(c) The cost assigned to each fiscal year is determined in
accordance with generally accepted accounting principles (GAAP) , as prescribed
in Accounting Principles Board Opinion No. 8 issued by the American Institute of
Certified Public Accountants; and
(d) The costs assigned to a given fiscal year are funded for
all plan participants within six months after the end of that year. However,
increases to normal and past service pension costs caused by a delay in funding
the actuarial liability beyond 30 days after each quarter of the year to which
such costs are assignable are unallowable.
(2) Pension plan termination insurance premiums paid pursuant to the
Employee Retirement Income Security Act (ERISA) of 1974 (Pub. L. 93-406) are
allowable. Late payment charges on such premiums are unallowable.
24
c to permit an equitable
carry-forward adjustment; or (iii) the organization's operations fluctuate
significantly from year to year.
f. Provisional and final rates shall be negotiated where neither
predetermined nor fixed rates are appropriate.
16
and the like are prorated individually as direct costs to
each category and to each award or other activity using a base most appropriate
to the particular cost being prorated.
b. This method is acceptable, provided each joint cost is prorated
using a base which accurately measures the benefits provided to each award or
14
The distribution shall be made in accordance with the bases described herein
unless it can be demonstrated that the use of. a different base would result in a
more equitable allocation of the costs, or that a more readily available base
would not increase the costs charged to sponsored awards. The results of
12
e or all activities; DEPARTMENT OF HOUSING AND
including citizen comments,complaint (vi)Reducing or terminating the URBAN DEVELOPMENT
determinations,and litigation.Reviews remaining grant of a subrecipient and
to determine compliance with specific reallocating those funds to other 24 CFR Parts 91,582,and 583
requirements of thispart will be subrecipients;and
q (vii)Making matching contributions (Docket No.FR-5333-F-02]
conducted as necessary,with or without before or as draws are made from the
prior notice to the recipient. RIN 2506-AC26
(2)If HUD determines preliminarily recipient's ESG grant.
that the recipient or one of its (2)HUD may change the method of Homeless Emergency Assistance and
subrecipients has not complied with an Payment to a reimbursement basis. Rapid Transition to Housing: Defining
ESG program requirement,HUD will y3)HUD may suspend payments to' Homeless
the extent HUD deems it necessary to
give the recipient notice of this preclude the further expenditure of AGENCY:Office of the Assistant
determination and an opportunity to funds for affected activities. Secretary for Community Planning and
demonstrate,within the time prescribed (4)HUD may remove the recipient . Development,HUD.
by HUD and on the basis of substantial from participation in reallocations of ACTION:Final rule.
facts and data,that the recipient has funds under subpart D of this part.
complied with Emergency Solutions (5)HUD may deny matching credit for SUMMARY:The Homeless Emergency
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
(3) Excise taxes on accumulated funding deficiencies and other
penalties imposed under ERISA are unallowable.
j . Incentive compensation. Incentive compensation to employees based on
cost reduction, or efficient performance, suggestion awards, safety awards,
etc. , are allowable to the extent that the overall compensation is determined to
be reasonable and such costs are paid or accrued pursuant to an agreement
entered into in good faith between the organization and the employees before the
services were rendered, or pursuant to an established plan followed by the
organization so consistently as to imply, in effect, an agreement to make such
payment.
k. Severance pay.
(1) Severance pay, also commonly referred to as dismissal wages, is
a payment in addition to regular salaries and wages, by organizations to workers
whose employment is being terminated. Costs of severance pay are allowable only
to the extent that in each case, it is required by
(a) law,
(b) employer-employee agreement,
(c) established policy that constitutes, in effect, an implied
agreement on the organization's part, or
(d) circumstances of the particular employment.
(2) Costs of severance payments are divided into two categories as
follows:
(a) Actual normal turnover severance payments shall be
allocated to all activities; or, where the organization provides for a reserve
for normal severances, such method will be acceptable if the charge to current
operations is reasonable in light of payments actually made for normal
severances over a representative past period, and if amounts charged are
allocated to all activities of the organization.
(b) Abnormal or mass severance pay is of such a conjectural
nature that measurement of costs by means of an accrual will not achieve equity
to both parties. Thus, accruals for this purpose are not allowable. However, the
Federal Government recognizes its obligation to participate, to the extent of
its fair share, in any specific payment. Thus, allowability will be considered
on a case-by-case basis in the event or occurrence.
(c) Costs incurred in certain severance pay packages (commonly
known as "a golden parachute" payment) which are in an amount in excess of the
normal severance pay paid by the organization to an employee upon termination of
employment and are paid to the employee contingent upon a change in management
control over, or ownership of, the organization's assets are unallowable.
(d) Severance payments to foreign nationals employed by the
organization outside the United States, to the extent that the amount exceeds
the customary or prevailing practices for the organization in the United States
are unallowable, unless they are necessary for the performance of Federal
programs and approved by awarding agencies.
(e) Severance payments to foreign nationals employed by the
organization outside the United States due to the termination of the foreign
national as a result of the closing of, or curtailment of activities by, the
organization in that country, are unallowable, unless they are necessary for the
performance of Federal programs and approved by awarding agencies.
25
predetermined nor fixed rates are appropriate.
16
and the like are prorated individually as direct costs to
each category and to each award or other activity using a base most appropriate
to the particular cost being prorated.
b. This method is acceptable, provided each joint cost is prorated
using a base which accurately measures the benefits provided to each award or
14
The distribution shall be made in accordance with the bases described herein
unless it can be demonstrated that the use of. a different base would result in a
more equitable allocation of the costs, or that a more readily available base
would not increase the costs charged to sponsored awards. The results of
12
e or all activities; DEPARTMENT OF HOUSING AND
including citizen comments,complaint (vi)Reducing or terminating the URBAN DEVELOPMENT
determinations,and litigation.Reviews remaining grant of a subrecipient and
to determine compliance with specific reallocating those funds to other 24 CFR Parts 91,582,and 583
requirements of thispart will be subrecipients;and
q (vii)Making matching contributions (Docket No.FR-5333-F-02]
conducted as necessary,with or without before or as draws are made from the
prior notice to the recipient. RIN 2506-AC26
(2)If HUD determines preliminarily recipient's ESG grant.
that the recipient or one of its (2)HUD may change the method of Homeless Emergency Assistance and
subrecipients has not complied with an Payment to a reimbursement basis. Rapid Transition to Housing: Defining
ESG program requirement,HUD will y3)HUD may suspend payments to' Homeless
the extent HUD deems it necessary to
give the recipient notice of this preclude the further expenditure of AGENCY:Office of the Assistant
determination and an opportunity to funds for affected activities. Secretary for Community Planning and
demonstrate,within the time prescribed (4)HUD may remove the recipient . Development,HUD.
by HUD and on the basis of substantial from participation in reallocations of ACTION:Final rule.
facts and data,that the recipient has funds under subpart D of this part.
complied with Emergency Solutions (5)HUD may deny matching credit for SUMMARY:The Homeless Emergency
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
1. Training costs. See paragraph 49.
m. Support of salaries and wages.
(1) Charges to awards for salaries and wages, whether treated as
direct costs or indirect costs, will be based on documented payrolls approved by
a responsible official (s) of the organization. The distribution of salaries and
wages to awards must be supported by personnel activity reports, as prescribed
in subparagraph (2) , except when a substitute system has been approved in
writing by the cognizant agency. (See subparagraph E.2 of Attachment A. )
(2) Reports reflecting the distribution of activity of each employee
must be maintained for all staff members (professionals and nonprofessionals)
whose compensation is charged, in whole or in part, directly to awards. In •
addition, in order to support the allocation of indirect costs, such reports
must also be maintained for other employees whose work involves two or more
functions or activities if a distribution of their compensation between such
functions or activities is needed in the determination of the organization's
indirect cost rate(s) (e.g. , an employee engaged part-time in indirect cost
activities and part-time in a direct function) . Reports maintained by non-
profit organizations to satisfy these requirements must meet the following
standards:
(a) The reports must reflect an after-the-fact determination
of the actual activity of each employee. Budget estimates (i.e. , estimates
determined before the services are performed) do not qualify as support for
charges to awards.
(b) Each report must account for the total activity for which
employees are compensated and which is required in fulfillment of their
obligations to the organization.
(c) The reports must be signed by the individual employee, or
by a responsible supervisory official having first hand knowledge of the
activities performed by the employee, that the distribution of activity
represents a reasonable estimate of the actual work performed by the employee
during the periods covered by the reports.
(d) The reports must be prepared at least monthly and must
coincide with one or more pay periods.
(3) Charges for the salaries and wages of nonprofessional employees,
in addition to the supporting documentation described in subparagraphs (1) and
(2) , must also be supported by records indicating the total number of hours
worked each day maintained in conformance with Department of Labor regulations
implementing the Fair Labor Standards Act (FLSA) (29 CFR Part 516) . For this
purpose, the term "nonprofessional employee" shall have the same meaning as
"nonexempt employee, " under FLSA.
(4) Salaries and wages of employees used in meeting cost sharing or
matching requirements on awards must be supported in the same manner as salaries
and wages claimed for reimbursement from awarding agencies.
9. Contingency provisions. Contributions to a contingency reserve or any
similar provision made for events the occurrence of which cannot be foretold
26
f activities by, the
organization in that country, are unallowable, unless they are necessary for the
performance of Federal programs and approved by awarding agencies.
25
predetermined nor fixed rates are appropriate.
16
and the like are prorated individually as direct costs to
each category and to each award or other activity using a base most appropriate
to the particular cost being prorated.
b. This method is acceptable, provided each joint cost is prorated
using a base which accurately measures the benefits provided to each award or
14
The distribution shall be made in accordance with the bases described herein
unless it can be demonstrated that the use of. a different base would result in a
more equitable allocation of the costs, or that a more readily available base
would not increase the costs charged to sponsored awards. The results of
12
e or all activities; DEPARTMENT OF HOUSING AND
including citizen comments,complaint (vi)Reducing or terminating the URBAN DEVELOPMENT
determinations,and litigation.Reviews remaining grant of a subrecipient and
to determine compliance with specific reallocating those funds to other 24 CFR Parts 91,582,and 583
requirements of thispart will be subrecipients;and
q (vii)Making matching contributions (Docket No.FR-5333-F-02]
conducted as necessary,with or without before or as draws are made from the
prior notice to the recipient. RIN 2506-AC26
(2)If HUD determines preliminarily recipient's ESG grant.
that the recipient or one of its (2)HUD may change the method of Homeless Emergency Assistance and
subrecipients has not complied with an Payment to a reimbursement basis. Rapid Transition to Housing: Defining
ESG program requirement,HUD will y3)HUD may suspend payments to' Homeless
the extent HUD deems it necessary to
give the recipient notice of this preclude the further expenditure of AGENCY:Office of the Assistant
determination and an opportunity to funds for affected activities. Secretary for Community Planning and
demonstrate,within the time prescribed (4)HUD may remove the recipient . Development,HUD.
by HUD and on the basis of substantial from participation in reallocations of ACTION:Final rule.
facts and data,that the recipient has funds under subpart D of this part.
complied with Emergency Solutions (5)HUD may deny matching credit for SUMMARY:The Homeless Emergency
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
with certainty as to time, intensity, or with an assurance of their happening,
are unallowable.
The term "contingency reserve" excludes self-insurance reserves (see Attachment B,
paragraphs 8.g. (3) and 22.a(2) (d) ) ; pension funds (see paragraph 8.i) : and reserves
for normal severance pay (see paragraph 8.k. )
10. Defense and prosecution of criminal and civil proceedings, claims, appeals
and patent infringement.
a. Definitions.
(1) Conviction, as used herein, means a judgment or a conviction of
a criminal offense by any court of competent jurisdiction, whether entered upon
as a verdict or a plea, including a conviction due to a plea of nolo contendere.
(2) Costs include, but are not limited to, administrative and
clerical expenses; the cost of legal services, whether performed by in-house or
private counsel; and the costs of the services of accountants, consultants, or
others retained by the organization to assist it; costs of employees, officers
and trustees, and any similar costs incurred before, during, and after
commencement of a judicial or administrative proceeding that bears a direct
relationship to the proceedings.
(3) Fraud, as used herein, means (i) acts of fraud corruption or
attempts to defraud the Federal Government or to corrupt its agents, (ii) acts
that constitute a cause for debarment or suspension (as specified in agency
regulations) , and (iii) acts which violate the False Claims Act, 31 U.S.C. ,
sections 3729-3731, or the Anti-Kickback Act, 41 U.S.C. , sections 51 and 54 .
(4) Penalty does not include restitution, reimbursement, or
compensatory damages.
(5) Proceeding includes an investigation.
b. (1) Except as otherwise described herein, costs incurred in
connection with any criminal, civil or administrative proceeding (including
filing of a false certification) commenced by the Federal Government, or a
State, local or foreign government, are not allowable if the proceeding: (1)
relates to a violation of, or failure to comply with, a Federal, State, local or
foreign statute or regulation by the organization (including its agents and
employees) , and (2) results in any of the following dispositions:
(a) In a criminal proceeding, a conviction.
(b) In a civil or administrative proceeding involving an
allegation of fraud or similar misconduct, a determination of organizational
liability.
(c) In the case of any civil or administrative proceeding, the
imposition of a monetary penalty.
(d) A final decision by an appropriate Federal official to
debar or suspend the organization, to rescind or void an award, or to terminate
27
" under FLSA.
(4) Salaries and wages of employees used in meeting cost sharing or
matching requirements on awards must be supported in the same manner as salaries
and wages claimed for reimbursement from awarding agencies.
9. Contingency provisions. Contributions to a contingency reserve or any
similar provision made for events the occurrence of which cannot be foretold
26
f activities by, the
organization in that country, are unallowable, unless they are necessary for the
performance of Federal programs and approved by awarding agencies.
25
predetermined nor fixed rates are appropriate.
16
and the like are prorated individually as direct costs to
each category and to each award or other activity using a base most appropriate
to the particular cost being prorated.
b. This method is acceptable, provided each joint cost is prorated
using a base which accurately measures the benefits provided to each award or
14
The distribution shall be made in accordance with the bases described herein
unless it can be demonstrated that the use of. a different base would result in a
more equitable allocation of the costs, or that a more readily available base
would not increase the costs charged to sponsored awards. The results of
12
e or all activities; DEPARTMENT OF HOUSING AND
including citizen comments,complaint (vi)Reducing or terminating the URBAN DEVELOPMENT
determinations,and litigation.Reviews remaining grant of a subrecipient and
to determine compliance with specific reallocating those funds to other 24 CFR Parts 91,582,and 583
requirements of thispart will be subrecipients;and
q (vii)Making matching contributions (Docket No.FR-5333-F-02]
conducted as necessary,with or without before or as draws are made from the
prior notice to the recipient. RIN 2506-AC26
(2)If HUD determines preliminarily recipient's ESG grant.
that the recipient or one of its (2)HUD may change the method of Homeless Emergency Assistance and
subrecipients has not complied with an Payment to a reimbursement basis. Rapid Transition to Housing: Defining
ESG program requirement,HUD will y3)HUD may suspend payments to' Homeless
the extent HUD deems it necessary to
give the recipient notice of this preclude the further expenditure of AGENCY:Office of the Assistant
determination and an opportunity to funds for affected activities. Secretary for Community Planning and
demonstrate,within the time prescribed (4)HUD may remove the recipient . Development,HUD.
by HUD and on the basis of substantial from participation in reallocations of ACTION:Final rule.
facts and data,that the recipient has funds under subpart D of this part.
complied with Emergency Solutions (5)HUD may deny matching credit for SUMMARY:The Homeless Emergency
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
an award for default by reason of a violation or failure to comply with a law or
regulation.
(e) A disposition by consent or compromise, if the action
could have resulted in any of the dispositions described in (a) , (b) , (c) or
(d) .
(2) If more than one proceeding involves the same alleged
misconduct, the costs of all such proceedings shall be unallowable if any one of
them results in one of the dispositions shown in subparagraph b. (1) .
c. If a proceeding referred to in subparagraph b is commenced by the
Federal Government and is resolved by consent or compromise pursuant to an
agreement entered into by the organization and the Federal Government, then the
costs incurred by the organization in connection with such proceedings that are
otherwise not allowable under subparagraph b may be allowed to the extent
specifically provided in such agreement.
d. If a proceeding referred to in subparagraph b is commenced by a State,
local or foreign government, the authorized Federal official may allow the costs
incurred by the organization for such proceedings, ' if such authorized official
determines that the costs were incurred as a result of (1) a specific term or
condition of a federally-sponsored award, or (2) specific written direction of
an authorized official of the sponsoring agency.
e. Costs incurred in connection with proceedings described in
subparagraph b, but which are not made unallowable by that subparagraph, may be
allowed by the Federal Government, but only to the extent that:
(1) The costs are reasonable in relation to the activities required
to deal with the proceeding and the underlying cause of action;
(2) Payment of the costs incurred,, as allowable and allocable costs,
is not prohibited by any other provision(s) of the sponsored award;
(3) The costs are not otherwise recovered from the Federal
Government or a third party, either directly as a result of the proceeding or
otherwise; and,
(4) The percentage of costs allowed does not exceed the percentage
determined by an authorized Federal official to be appropriate, considering the
complexity of the litigation, generally accepted principles governing the award
of legal fees in civil actions involving the United States as a party, and such
other factors as may be appropriate. Such percentage shall not exceed 80
percent. However, if an agreement reached under subparagraph c has explicitly
considered this 80 percent limitation and permitted a higher percentage, then
the full amount of costs resulting from that agreement shall be allowable.
f. Costs incurred by the organization in connection with the defense of
suits brought by its employees or ex-employees under section 2 of the Major
Fraud Act of 1988 (Pub. L. 100-700) , including the cost of all relief necessary
to make such employee whole, where the organization was found liable or settled,
are unallowable.
g. Costs of legal, accounting, and consultant services, and related
costs, incurred in connection with defense against Federal Government claims or
28 '
ization in that country, are unallowable, unless they are necessary for the
performance of Federal programs and approved by awarding agencies.
25
predetermined nor fixed rates are appropriate.
16
and the like are prorated individually as direct costs to
each category and to each award or other activity using a base most appropriate
to the particular cost being prorated.
b. This method is acceptable, provided each joint cost is prorated
using a base which accurately measures the benefits provided to each award or
14
The distribution shall be made in accordance with the bases described herein
unless it can be demonstrated that the use of. a different base would result in a
more equitable allocation of the costs, or that a more readily available base
would not increase the costs charged to sponsored awards. The results of
12
e or all activities; DEPARTMENT OF HOUSING AND
including citizen comments,complaint (vi)Reducing or terminating the URBAN DEVELOPMENT
determinations,and litigation.Reviews remaining grant of a subrecipient and
to determine compliance with specific reallocating those funds to other 24 CFR Parts 91,582,and 583
requirements of thispart will be subrecipients;and
q (vii)Making matching contributions (Docket No.FR-5333-F-02]
conducted as necessary,with or without before or as draws are made from the
prior notice to the recipient. RIN 2506-AC26
(2)If HUD determines preliminarily recipient's ESG grant.
that the recipient or one of its (2)HUD may change the method of Homeless Emergency Assistance and
subrecipients has not complied with an Payment to a reimbursement basis. Rapid Transition to Housing: Defining
ESG program requirement,HUD will y3)HUD may suspend payments to' Homeless
the extent HUD deems it necessary to
give the recipient notice of this preclude the further expenditure of AGENCY:Office of the Assistant
determination and an opportunity to funds for affected activities. Secretary for Community Planning and
demonstrate,within the time prescribed (4)HUD may remove the recipient . Development,HUD.
by HUD and on the basis of substantial from participation in reallocations of ACTION:Final rule.
facts and data,that the recipient has funds under subpart D of this part.
complied with Emergency Solutions (5)HUD may deny matching credit for SUMMARY:The Homeless Emergency
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
appeals, antitrust suits, or the prosecution of claims or appeals against the
Federal Government, are unallowable.
h. Costs of legal, accounting, and consultant services, and related
costs, incurred in connection with patent infringement litigation, are
unallowable unless otherwise provided for in the sponsored awards.
i. Costs which may be unallowable under this paragraph, including
directly associated costs, shall be segregated and accounted for by the
organization separately. During the pendency of any proceeding covered by
subparagraphs b and f, the Federal Government shall generally withhold payment
of such costs. However, if in the best interests of the Federal Government, the
Federal Government may provide for conditional payment upon provision of
adequate security, or other adequate assurance, and agreements by the
organization to repay all unallowable costs, plus interest, if the costs are
subsequently determined to be unallowable.
11. Depreciation and use allowances.
a. Compensation for the use of buildings, other capital improvements, and
equipment on hand may be made through use allowance or depreciation. However,
except as provided in Attachment B, paragraph f, a combination of the two
methods may not be used in connection with a single class of fixed assets (e.g. ,
buildings, office equipment, computer equipment, etc. ) .
b. The computation of use allowances or depreciation shall be based on the
acquisition cost of the assets involved. The acquisition cost of an asset
donated to the non-profit organization by a third party shall be its fair market
value at the time of the donation.
c. The computation of use allowances or depreciation will exclude:
(1) The cost of land;
(2) Any portion of the cost of buildings and equipment borne by or
donated by the Federal Government irrespective of where title was originally
vested or where it presently resides; and
(3) Any portion of the cost of buildings and equipment contributed
by or for the non-profit organization in satisfaction of a statutory matching
requirement.
d. Where depreciation method is followed, the period of useful service
(useful life) established in each case for usable capital assets must take into
consideration such factors as type of construction, nature of the equipment
used, technological developments in the particular program area, and the renewal
and replacement policies followed for the individual items or classes of assets
involved. The method of depreciation used to assign the cost of an asset (or
group of assets) to accounting periods shall reflect the pattern of consumption
of the asset during its useful life.
In the absence of clear evidence indicating that the expected consumption of the
asset will be significantly greater or lesser in the early portions of its
useful life than in the later portions, the straight-line method shall be
presumed to be the appropriate method.
Depreciation methods once used shall not be changed unless approved in advance
by the cognizant Federal agency. When the depreciation method is introduced for
29
e necessary for the
performance of Federal programs and approved by awarding agencies.
25
predetermined nor fixed rates are appropriate.
16
and the like are prorated individually as direct costs to
each category and to each award or other activity using a base most appropriate
to the particular cost being prorated.
b. This method is acceptable, provided each joint cost is prorated
using a base which accurately measures the benefits provided to each award or
14
The distribution shall be made in accordance with the bases described herein
unless it can be demonstrated that the use of. a different base would result in a
more equitable allocation of the costs, or that a more readily available base
would not increase the costs charged to sponsored awards. The results of
12
e or all activities; DEPARTMENT OF HOUSING AND
including citizen comments,complaint (vi)Reducing or terminating the URBAN DEVELOPMENT
determinations,and litigation.Reviews remaining grant of a subrecipient and
to determine compliance with specific reallocating those funds to other 24 CFR Parts 91,582,and 583
requirements of thispart will be subrecipients;and
q (vii)Making matching contributions (Docket No.FR-5333-F-02]
conducted as necessary,with or without before or as draws are made from the
prior notice to the recipient. RIN 2506-AC26
(2)If HUD determines preliminarily recipient's ESG grant.
that the recipient or one of its (2)HUD may change the method of Homeless Emergency Assistance and
subrecipients has not complied with an Payment to a reimbursement basis. Rapid Transition to Housing: Defining
ESG program requirement,HUD will y3)HUD may suspend payments to' Homeless
the extent HUD deems it necessary to
give the recipient notice of this preclude the further expenditure of AGENCY:Office of the Assistant
determination and an opportunity to funds for affected activities. Secretary for Community Planning and
demonstrate,within the time prescribed (4)HUD may remove the recipient . Development,HUD.
by HUD and on the basis of substantial from participation in reallocations of ACTION:Final rule.
facts and data,that the recipient has funds under subpart D of this part.
complied with Emergency Solutions (5)HUD may deny matching credit for SUMMARY:The Homeless Emergency
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
application to assets previously subject to a use allowance, the combination of
use allowances and depreciation applicable to such assets must not exceed the
total acquisition cost of the assets.
e. When the depreciation method is used for buildings, a building's shell
may be segregated from each building component (e.g. , plumbing system, heating,
and air conditioning system, etc. ) and each item depreciated over its estimated
useful life; or the entire building (i.e. , the shell and all components) may be
treated as a single asset and depreciated over a single useful life.
f. When the depreciation method is used for a particular class of assets,
no depreciation may be allowed on any such assets that, under subparagraph d,
would be viewed as fully depreciated. However, a reasonable use allowance may
be negotiated for such assets if warranted after taking into consideration the
amount of depreciation previously charged to the Federal Government, the
estimated useful life remaining at time of negotiation, the effect of any
increased maintenance charges or decreased efficiency due to age, and any other
factors pertinent to the utilization of the asset for the purpose contemplated.
g. Where the use allowance method is followed, the use allowance for
buildings and improvement (including land improvements, such as paved parking
areas, fences, and sidewalks) will be computed at an annual rate not exceeding
two percent of acquisition cost.
The use allowance for equipment will be computed at an annual rate not exceeding
six and two-thirds percent of acquisition cost. When the use allowance method is
used for buildings, the entire building must be treated as a single asset; the
building's components (e.g. , plumbing system, heating and air conditioning,
etc. ) cannot be segregated from the building's shell.
The two percent limitation, however, need not be applied to equipment which is
merely attached or fastened to the building but not permanently fixed to it and
which is used as furnishings or decorations or for specialized purposes (e.g. ,
dentist chairs and dental treatment units, counters, laboratory benches bolted
to the floor, dishwashers, modular furniture, carpeting, etc. ) . Such equipment
will be considered as not being permanently fixed to the building if it can be
removed without the need for costly or extensive alterations or repairs to the
building or the equipment. Equipment that meets these criteria will be subject
to the 6 2/3 percent equipment use allowance limitation.
h. Charges for use allowances or depreciation must be supported by
adequate property records and physical inventories must be taken at least once
every two years (a statistical sampling basis is acceptable) to ensure that
assets exist and are usable and needed. When the depreciation method is
followed, adequate depreciation records indicating the amount of depreciation
taken each period must also be maintained.
12. Donations and contributions.
a. Contributions or donations rendered. Contributions or donations,
including cash, property, and services, made by the organization, regardless of
the recipient, are unallowable.
b. Donated services received:
30
awarding agencies.
25
predetermined nor fixed rates are appropriate.
16
and the like are prorated individually as direct costs to
each category and to each award or other activity using a base most appropriate
to the particular cost being prorated.
b. This method is acceptable, provided each joint cost is prorated
using a base which accurately measures the benefits provided to each award or
14
The distribution shall be made in accordance with the bases described herein
unless it can be demonstrated that the use of. a different base would result in a
more equitable allocation of the costs, or that a more readily available base
would not increase the costs charged to sponsored awards. The results of
12
e or all activities; DEPARTMENT OF HOUSING AND
including citizen comments,complaint (vi)Reducing or terminating the URBAN DEVELOPMENT
determinations,and litigation.Reviews remaining grant of a subrecipient and
to determine compliance with specific reallocating those funds to other 24 CFR Parts 91,582,and 583
requirements of thispart will be subrecipients;and
q (vii)Making matching contributions (Docket No.FR-5333-F-02]
conducted as necessary,with or without before or as draws are made from the
prior notice to the recipient. RIN 2506-AC26
(2)If HUD determines preliminarily recipient's ESG grant.
that the recipient or one of its (2)HUD may change the method of Homeless Emergency Assistance and
subrecipients has not complied with an Payment to a reimbursement basis. Rapid Transition to Housing: Defining
ESG program requirement,HUD will y3)HUD may suspend payments to' Homeless
the extent HUD deems it necessary to
give the recipient notice of this preclude the further expenditure of AGENCY:Office of the Assistant
determination and an opportunity to funds for affected activities. Secretary for Community Planning and
demonstrate,within the time prescribed (4)HUD may remove the recipient . Development,HUD.
by HUD and on the basis of substantial from participation in reallocations of ACTION:Final rule.
facts and data,that the recipient has funds under subpart D of this part.
complied with Emergency Solutions (5)HUD may deny matching credit for SUMMARY:The Homeless Emergency
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
(1) Donated or volunteer services may be furnished to an
organization by professional and technical personnel, consultants, and other
skilled and unskilled labor. The value of these services is not reimbursable
either as a direct or indirect cost. However, the value of donated services may
be used to meet cost sharing or matching requirements in accordance with the
Common Rule.
(2)The value of donated services utilized in the performance of a
direct cost activity shall, when material in amount, be considered in the
determination of the non-profit organization's indirect costs or rate(s) and,
accordingly, shall be allocated a proportionate share of applicable indirect
costs when the following exist:
(a) The aggregate value of the services is material;
(b) The services are supported by a significant amount of the
indirect costs incurred by the non-profit organization; and
(c) The direct cost activity is not pursued primarily for the
benefit of the Federal Government.
(3) In those instances where there is no basis for determining the
fair market value of the services rendered, the recipient and the cognizant
agency,shall negotiate an appropriate allocation of indirect cost to the
services.
(4) Where donated services directly benefit a project supported by
an award, the indirect costs allocated to the services will be considered as a
part of the total costs of the project. Such indirect costs may be reimbursed
under the award or used to meet cost sharing or matching requirements.
(5) The value of the donated services may be used to meet cost
sharing or matching requirements under conditions described in Sec._.23 of
Circular A-110. Where donated services are treated as indirect costs, indirect
cost rates will separate the value of the donations so that reimbursement will
not be made.
c. Donated goods or space.
(1) Donated goods; i.e. , expendable personal property/supplies, and
donated use of space may be furnished to a non-profit organization. The value of
the goods and space is not reimbursable either as a direct or indirect cost.
(2) The value of the donations may be used to meet cost sharing or
matching share requirements under the conditions described in Circular A-110.
Where donations are treated as indirect costs, indirect cost rates will separate
the value of the donations so that reimbursement will not be made.
13 . Employee morale, health, and welfare costs.
31
lowance limitation.
h. Charges for use allowances or depreciation must be supported by
adequate property records and physical inventories must be taken at least once
every two years (a statistical sampling basis is acceptable) to ensure that
assets exist and are usable and needed. When the depreciation method is
followed, adequate depreciation records indicating the amount of depreciation
taken each period must also be maintained.
12. Donations and contributions.
a. Contributions or donations rendered. Contributions or donations,
including cash, property, and services, made by the organization, regardless of
the recipient, are unallowable.
b. Donated services received:
30
awarding agencies.
25
predetermined nor fixed rates are appropriate.
16
and the like are prorated individually as direct costs to
each category and to each award or other activity using a base most appropriate
to the particular cost being prorated.
b. This method is acceptable, provided each joint cost is prorated
using a base which accurately measures the benefits provided to each award or
14
The distribution shall be made in accordance with the bases described herein
unless it can be demonstrated that the use of. a different base would result in a
more equitable allocation of the costs, or that a more readily available base
would not increase the costs charged to sponsored awards. The results of
12
e or all activities; DEPARTMENT OF HOUSING AND
including citizen comments,complaint (vi)Reducing or terminating the URBAN DEVELOPMENT
determinations,and litigation.Reviews remaining grant of a subrecipient and
to determine compliance with specific reallocating those funds to other 24 CFR Parts 91,582,and 583
requirements of thispart will be subrecipients;and
q (vii)Making matching contributions (Docket No.FR-5333-F-02]
conducted as necessary,with or without before or as draws are made from the
prior notice to the recipient. RIN 2506-AC26
(2)If HUD determines preliminarily recipient's ESG grant.
that the recipient or one of its (2)HUD may change the method of Homeless Emergency Assistance and
subrecipients has not complied with an Payment to a reimbursement basis. Rapid Transition to Housing: Defining
ESG program requirement,HUD will y3)HUD may suspend payments to' Homeless
the extent HUD deems it necessary to
give the recipient notice of this preclude the further expenditure of AGENCY:Office of the Assistant
determination and an opportunity to funds for affected activities. Secretary for Community Planning and
demonstrate,within the time prescribed (4)HUD may remove the recipient . Development,HUD.
by HUD and on the basis of substantial from participation in reallocations of ACTION:Final rule.
facts and data,that the recipient has funds under subpart D of this part.
complied with Emergency Solutions (5)HUD may deny matching credit for SUMMARY:The Homeless Emergency
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
a. The costs of employee information publications, health or first-aid
clinics and/or infirmaries, recreational activities, employee counseling
services, and any other expenses incurred in accordance with the non-profit
organization's established practice or custom for the improvement of working
conditions, employer-employee relations, employee morale, and employee
performance are allowable.
b. Such costs will be equitably apportioned to all activities of the non-
profit organization. Income generated from any of these activities will be
credited to the cost thereof unless such income has been irrevocably set over to
employee welfare organizations.
14. Entertainment costs. Costs of entertainment, including amusement,
diversion, and social activities and any costs directly associated with such
costs (such as tickets to shows or sports events, meals, lodging, rentals,
transportation, and gratuities) are unallowable.
15. Equipment and other capital expenditures.
a. For purposes of this subparagraph, the following definitions apply:
(1) "Capital Expenditures" means expenditures for the acquisition
cost of capital assets (equipment, buildings, land) , or expenditures to make
improvements to capital assets that materially increase their value or useful
life. Acquisition cost means the cost of the asset including the cost to put it
in place. Acquisition cost for equipment, for example, means the net invoice
price of the equipment, including the cost of any modifications, attachments,
accessories, or auxiliary apparatus necessary to make it usable for the purpose
for which it is acquired. Ancillary charges, such as taxes, duty, protective in
transit insurance, freight, and installation may be included in, or excluded
from the acquisition cost in accordance with the non-profit organization's
regular accounting practices.
(2) "Equipment" means an article of nonexpendable, tangible personal
property having a useful life of more than one year and an acquisition cost
which equals or exceeds the lesser of the capitalization level established by
the non-profit organization for financial statement purposes, or $5000.
(3) "Special purpose equipment" means equipment which is used only
for research, medical, scientific, or other technical activities. Examples of
special purpose equipment include microscopes, x-ray machines, surgical
instruments, and spectrometers.
(4) "General purpose equipment" means equipment, which is not
limited to research, medical, •scientific or other 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.
b. The following rules of allowability shall apply to equipment and other
capital expenditures:
32
te depreciation records indicating the amount of depreciation
taken each period must also be maintained.
12. Donations and contributions.
a. Contributions or donations rendered. Contributions or donations,
including cash, property, and services, made by the organization, regardless of
the recipient, are unallowable.
b. Donated services received:
30
awarding agencies.
25
predetermined nor fixed rates are appropriate.
16
and the like are prorated individually as direct costs to
each category and to each award or other activity using a base most appropriate
to the particular cost being prorated.
b. This method is acceptable, provided each joint cost is prorated
using a base which accurately measures the benefits provided to each award or
14
The distribution shall be made in accordance with the bases described herein
unless it can be demonstrated that the use of. a different base would result in a
more equitable allocation of the costs, or that a more readily available base
would not increase the costs charged to sponsored awards. The results of
12
e or all activities; DEPARTMENT OF HOUSING AND
including citizen comments,complaint (vi)Reducing or terminating the URBAN DEVELOPMENT
determinations,and litigation.Reviews remaining grant of a subrecipient and
to determine compliance with specific reallocating those funds to other 24 CFR Parts 91,582,and 583
requirements of thispart will be subrecipients;and
q (vii)Making matching contributions (Docket No.FR-5333-F-02]
conducted as necessary,with or without before or as draws are made from the
prior notice to the recipient. RIN 2506-AC26
(2)If HUD determines preliminarily recipient's ESG grant.
that the recipient or one of its (2)HUD may change the method of Homeless Emergency Assistance and
subrecipients has not complied with an Payment to a reimbursement basis. Rapid Transition to Housing: Defining
ESG program requirement,HUD will y3)HUD may suspend payments to' Homeless
the extent HUD deems it necessary to
give the recipient notice of this preclude the further expenditure of AGENCY:Office of the Assistant
determination and an opportunity to funds for affected activities. Secretary for Community Planning and
demonstrate,within the time prescribed (4)HUD may remove the recipient . Development,HUD.
by HUD and on the basis of substantial from participation in reallocations of ACTION:Final rule.
facts and data,that the recipient has funds under subpart D of this part.
complied with Emergency Solutions (5)HUD may deny matching credit for SUMMARY:The Homeless Emergency
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
(1) Capital expenditures for general purpose equipment, buildings,
and land are unallowable as direct charges, except where approved in advance by
the awarding agency.
(2) Capital expenditures for special purpose equipment are allowable
as direct costs, provided that items with a unit cost of $5000 or more have the
prior approval of the awarding agency.
(3) Capital expenditures for improvements to land, buildings, or
equipment which materially increase their value or useful life are unallowable
as a direct cost except with the prior approval of the awarding agency.
(4) When approved as a direct charge pursuant to paragraph 15.b. (1) ,
(2) , and (3) above, capital expenditures will be charged in the period in which
the expenditure is incurred, or as otherwise determined appropriate by and
negotiated with the awarding agency.
(5) Equipment and other capital expenditures are unallowable as
indirect costs. However, see Attachment B, paragraph 11. , Depreciation and use
allowance, for rules on the allowability of use allowances or depreciation on
buildings, capital improvements, and equipment. Also, see Attachment B,
paragraph 43. , Rental costs of buildings and equipment, for rules on the
allowability of rental costs for land, buildings, and equipment.
(6) The unamortized portion of any equipment written off as a result
of a change in capitalization levels may be recovered by continuing to claim the
otherwise allowable use allowances or depreciation on the equipment, or by
amortizing the amount to be written off over a period of years negotiated with
the cognizant agency.
16. Fines and penalties. Costs of fines and penalties resulting from
violations of, or failure of the organization to comply with Federal, State, and
local laws and regulations are unallowable except when incurred as a result of
compliance with specific provisions of an award or instructions in writing from
the awarding agency.
17. Fund raising and investment management costs.
a. Costs of organized fund raising, including financial campaigns,
endowment drives, solicitation of gifts and bequests, and similar expenses
incurred solely to raise capital or obtain contributions are unallowable.
b. Costs of investment counsel and staff and similar expenses incurred
solely to enhance income from investments are unallowable.
c. Fund raising and investment activities shall be allocated an
appropriate share of indirect costs under the conditions described in
subparagraph B.3 of Attachment A.
18. Gains and losses on depreciable assets.
a. (1) Gains and losses on sale, retirement, or other disposition of
depreciable property shall be included in the year in which they occur as
credits or charges to cost grouping(s) in which the depreciation applicable to
33
indicating the amount of depreciation
taken each period must also be maintained.
12. Donations and contributions.
a. Contributions or donations rendered. Contributions or donations,
including cash, property, and services, made by the organization, regardless of
the recipient, are unallowable.
b. Donated services received:
30
awarding agencies.
25
predetermined nor fixed rates are appropriate.
16
and the like are prorated individually as direct costs to
each category and to each award or other activity using a base most appropriate
to the particular cost being prorated.
b. This method is acceptable, provided each joint cost is prorated
using a base which accurately measures the benefits provided to each award or
14
The distribution shall be made in accordance with the bases described herein
unless it can be demonstrated that the use of. a different base would result in a
more equitable allocation of the costs, or that a more readily available base
would not increase the costs charged to sponsored awards. The results of
12
e or all activities; DEPARTMENT OF HOUSING AND
including citizen comments,complaint (vi)Reducing or terminating the URBAN DEVELOPMENT
determinations,and litigation.Reviews remaining grant of a subrecipient and
to determine compliance with specific reallocating those funds to other 24 CFR Parts 91,582,and 583
requirements of thispart will be subrecipients;and
q (vii)Making matching contributions (Docket No.FR-5333-F-02]
conducted as necessary,with or without before or as draws are made from the
prior notice to the recipient. RIN 2506-AC26
(2)If HUD determines preliminarily recipient's ESG grant.
that the recipient or one of its (2)HUD may change the method of Homeless Emergency Assistance and
subrecipients has not complied with an Payment to a reimbursement basis. Rapid Transition to Housing: Defining
ESG program requirement,HUD will y3)HUD may suspend payments to' Homeless
the extent HUD deems it necessary to
give the recipient notice of this preclude the further expenditure of AGENCY:Office of the Assistant
determination and an opportunity to funds for affected activities. Secretary for Community Planning and
demonstrate,within the time prescribed (4)HUD may remove the recipient . Development,HUD.
by HUD and on the basis of substantial from participation in reallocations of ACTION:Final rule.
facts and data,that the recipient has funds under subpart D of this part.
complied with Emergency Solutions (5)HUD may deny matching credit for SUMMARY:The Homeless Emergency
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
such property was included. The amount of the gain or loss to be included as a
credit or charge to the appropriate cost grouping(s) shall be the difference
between the amount realized on the property and the undepreciated basis of the
property.
(2) Gains and losses on the disposition of depreciable property
shall not be recognized as a separate credit or charge under the following
conditions:
(a) The gain or loss is processed through a depreciation
account and is reflected in the depreciation allowable under paragraph 11.
(b) The property is given in exchange as part of the purchase
price of a similar item and the gain or loss is taken into account in
determining the depreciation cost basis of the new item.
(c) A loss results from the failure to maintain permissible
insurance, except as otherwise provided in Attachment B, paragraph 22.
(d) Compensation for the use of the property was provided
through use allowances in lieu of depreciation in accordance with paragraph 9.
(e) Gains and losses arising from mass or extraordinary sales,
retirements, or other dispositions shall be considered on a case-by-case basis.
b. Gains or losses of any nature arising from the sale or exchange of
property other than the property covered in subparagraph a shall be excluded in
computing award costs.
19. Goods or services for personal use. • Costs of goods or services for
personal use of the organization's employees are unallowable regardless of
whether the cost is reported as taxable income to the employees.
20. Housing and personal living expenses.
a. Costs of housing (e.g. , depreciation, maintenance, utilities,
furnishings, rent, etc. ) , housing allowances and personal living expenses for/of
the organization's officers are unallowable as fringe benefit or indirect costs
regardless of whether the cost is reported as taxable income to the employees.
These costs are allowable as direct costs to sponsored award when necessary for
the performance of the sponsored award and approved by awarding agencies.
b. The term "officers" includes current and past officers and employees.
21. Idle facilities and idle capacity.
a. As used in this section the following terms have the meanings set forth
below:
(1) "Facilities" means land and buildings or any portion thereof,
equipment individually or collectively, or any other tangible capital asset,
wherever located, and whether owned or leased by the non-profit organization.
34
subparagraph B.3 of Attachment A.
18. Gains and losses on depreciable assets.
a. (1) Gains and losses on sale, retirement, or other disposition of
depreciable property shall be included in the year in which they occur as
credits or charges to cost grouping(s) in which the depreciation applicable to
33
indicating the amount of depreciation
taken each period must also be maintained.
12. Donations and contributions.
a. Contributions or donations rendered. Contributions or donations,
including cash, property, and services, made by the organization, regardless of
the recipient, are unallowable.
b. Donated services received:
30
awarding agencies.
25
predetermined nor fixed rates are appropriate.
16
and the like are prorated individually as direct costs to
each category and to each award or other activity using a base most appropriate
to the particular cost being prorated.
b. This method is acceptable, provided each joint cost is prorated
using a base which accurately measures the benefits provided to each award or
14
The distribution shall be made in accordance with the bases described herein
unless it can be demonstrated that the use of. a different base would result in a
more equitable allocation of the costs, or that a more readily available base
would not increase the costs charged to sponsored awards. The results of
12
e or all activities; DEPARTMENT OF HOUSING AND
including citizen comments,complaint (vi)Reducing or terminating the URBAN DEVELOPMENT
determinations,and litigation.Reviews remaining grant of a subrecipient and
to determine compliance with specific reallocating those funds to other 24 CFR Parts 91,582,and 583
requirements of thispart will be subrecipients;and
q (vii)Making matching contributions (Docket No.FR-5333-F-02]
conducted as necessary,with or without before or as draws are made from the
prior notice to the recipient. RIN 2506-AC26
(2)If HUD determines preliminarily recipient's ESG grant.
that the recipient or one of its (2)HUD may change the method of Homeless Emergency Assistance and
subrecipients has not complied with an Payment to a reimbursement basis. Rapid Transition to Housing: Defining
ESG program requirement,HUD will y3)HUD may suspend payments to' Homeless
the extent HUD deems it necessary to
give the recipient notice of this preclude the further expenditure of AGENCY:Office of the Assistant
determination and an opportunity to funds for affected activities. Secretary for Community Planning and
demonstrate,within the time prescribed (4)HUD may remove the recipient . Development,HUD.
by HUD and on the basis of substantial from participation in reallocations of ACTION:Final rule.
facts and data,that the recipient has funds under subpart D of this part.
complied with Emergency Solutions (5)HUD may deny matching credit for SUMMARY:The Homeless Emergency
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
(2) "Idle facilities" means completely unused facilities that are
excess to the non-profit organization's current needs.
(3) "Idle capacity" means the unused capacity of partially used
facilities. It is the difference between: (a) that which a facility could
achieve under 100 percent operating time on a one-shift basis less operating
interruptions resulting from time lost for repairs, setups, unsatisfactory
materials, and other normal delays; and (b) the extent to which the facility was
actually used to meet demands during the accounting period. A multi-shift basis
should be used if it can be shown that this amount of usage would normally be
expected for the type of facility involved.
(4) "Cost of idle facilities or idle capacity" means costs such as
maintenance, repair, housing, rent, and other related costs, e.g. , insurance,
interest, property taxes and depreciation or use allowances.
b. The costs of idle facilities are unallowable except to the extent that:
(1) They are necessary to meet fluctuations in workload; or
(2) Although not necessary to meet fluctuations in workload, they
were necessary when acquired and are now idle because of changes in program
requirements, efforts to achieve more economical operations, reorganization,
termination, or other causes which could not have been reasonably foreseen.
Under the exception stated in this subparagraph, costs of idle facilities are
allowable for a reasonable period of time, ordinarily not to exceed one year,
depending on the initiative taken to use, lease, or dispose of such facilities.
c. The costs of idle capacity are normal costs of doing business and are a
factor in the normal fluctuations of usage or indirect cost rates from period to ,
period. Such costs are allowable, provided that the capacity is reasonably
anticipated to be necessary or was originally reasonable and is not subject to
reduction or elimination by use on other Federal awards, subletting, renting, or
sale, in accordance with sound business, economic, or security practices.
Widespread idle capacity throughout an entire facility or among a group of
assets having substantially the same function may be considered idle facilities.
22. Insurance and indemnification.
a. Insurance includes insurance which the organization is required to
carry, or which is approved, under the terms of the award and any other
insurance which the organization maintains in connection with the general
conduct of its operations. This paragraph does not apply to insurance which
represents fringe benefits for employees (see subparagraphs 8 .g and 8.i (2) ) .
(1) Costs of insurance required or approved, and maintained,
pursuant to the award are allowable.
(2) Costs of other insurance maintained by the organization in
connection with the general conduct of its operations are allowable subject to
the following limitations:
(a) Types and extent of coverage shall be in accordance with
sound business practice and the rates and premiums shall be reasonable under the
circumstances.
35
rdless of
the recipient, are unallowable.
b. Donated services received:
30
awarding agencies.
25
predetermined nor fixed rates are appropriate.
16
and the like are prorated individually as direct costs to
each category and to each award or other activity using a base most appropriate
to the particular cost being prorated.
b. This method is acceptable, provided each joint cost is prorated
using a base which accurately measures the benefits provided to each award or
14
The distribution shall be made in accordance with the bases described herein
unless it can be demonstrated that the use of. a different base would result in a
more equitable allocation of the costs, or that a more readily available base
would not increase the costs charged to sponsored awards. The results of
12
e or all activities; DEPARTMENT OF HOUSING AND
including citizen comments,complaint (vi)Reducing or terminating the URBAN DEVELOPMENT
determinations,and litigation.Reviews remaining grant of a subrecipient and
to determine compliance with specific reallocating those funds to other 24 CFR Parts 91,582,and 583
requirements of thispart will be subrecipients;and
q (vii)Making matching contributions (Docket No.FR-5333-F-02]
conducted as necessary,with or without before or as draws are made from the
prior notice to the recipient. RIN 2506-AC26
(2)If HUD determines preliminarily recipient's ESG grant.
that the recipient or one of its (2)HUD may change the method of Homeless Emergency Assistance and
subrecipients has not complied with an Payment to a reimbursement basis. Rapid Transition to Housing: Defining
ESG program requirement,HUD will y3)HUD may suspend payments to' Homeless
the extent HUD deems it necessary to
give the recipient notice of this preclude the further expenditure of AGENCY:Office of the Assistant
determination and an opportunity to funds for affected activities. Secretary for Community Planning and
demonstrate,within the time prescribed (4)HUD may remove the recipient . Development,HUD.
by HUD and on the basis of substantial from participation in reallocations of ACTION:Final rule.
facts and data,that the recipient has funds under subpart D of this part.
complied with Emergency Solutions (5)HUD may deny matching credit for SUMMARY:The Homeless Emergency
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
(b) Costs allowed for business interruption or other similar
insurance shall be limited to exclude coverage of management fees.
(c) Costs of insurance or of any provisions for a reserve
covering the risk of loss or damage to Federal property are allowable only to
the extent that the organization is liable for such loss or damage.
(d) Provisions for a reserve under a self-insurance program
are allowable to the extent that types of coverage, extent of coverage, rates,
and premiums would have been allowed had insurance been purchased to cover the
risks. However, provision for known or reasonably estimated self-insured
liabilities, which do not become payable for more than one year after the
provision is made, shall not exceed the present value of the liability.
(e) Costs of insurance on the lives of trustees, officers, or
other employees holding positions of similar responsibilities are allowable only
to the extent that the insurance represents additional compensation (see
subparagraph 8.g(4) ) . The cost of such insurance when the organization is
identified as the beneficiary is unallowable.
(f) Insurance against defects. Costs of insurance with
respect to any costs incurred to correct defects in the organization's materials
or workmanship are unallowable.
(g) Medical liability (malpractice) insurance. Medical
liability insurance is an allowable cost of Federal research programs only to
the extent that the Federal research programs involve human subjects or training
of participants in research techniques. Medical liability insurance costs shall
be treated as a direct cost and shall be assigned to individual projects based
on the manner in which the insurer allocates the risk to the population covered
by the insurance.
(3) Actual losses which could have been covered by permissible
insurance (through the purchase of insurance or a self-insurance program) are
unallowable unless expressly provided for in the award, except:
(a) Costs incurred because of losses not covered under nominal
deductible insurance coverage provided in keeping with sound business practice
are allowable.
(b) Minor losses not covered by insurance, such as spoilage,
breakage, and disappearance of supplies, which occur in the ordinary course of
operations, are allowable.
b. Indemnification includes securing the organization against liabilities
to third persons and any other loss or damage, not compensated by insurance or
otherwise. The Federal Government is obligated to indemnify the organization
only to the extent expressly provided in the award.
23 . Interest.
a. Costs incurred for interest on borrowed capital, temporary use of
endowment funds, or the use of the non-profit organization's own funds, however
represented, are unallowable. However, interest on debt incurred after
September 29, 1995 to acquire or replace capital assets (including
36
l be in accordance with
sound business practice and the rates and premiums shall be reasonable under the
circumstances.
35
rdless of
the recipient, are unallowable.
b. Donated services received:
30
awarding agencies.
25
predetermined nor fixed rates are appropriate.
16
and the like are prorated individually as direct costs to
each category and to each award or other activity using a base most appropriate
to the particular cost being prorated.
b. This method is acceptable, provided each joint cost is prorated
using a base which accurately measures the benefits provided to each award or
14
The distribution shall be made in accordance with the bases described herein
unless it can be demonstrated that the use of. a different base would result in a
more equitable allocation of the costs, or that a more readily available base
would not increase the costs charged to sponsored awards. The results of
12
e or all activities; DEPARTMENT OF HOUSING AND
including citizen comments,complaint (vi)Reducing or terminating the URBAN DEVELOPMENT
determinations,and litigation.Reviews remaining grant of a subrecipient and
to determine compliance with specific reallocating those funds to other 24 CFR Parts 91,582,and 583
requirements of thispart will be subrecipients;and
q (vii)Making matching contributions (Docket No.FR-5333-F-02]
conducted as necessary,with or without before or as draws are made from the
prior notice to the recipient. RIN 2506-AC26
(2)If HUD determines preliminarily recipient's ESG grant.
that the recipient or one of its (2)HUD may change the method of Homeless Emergency Assistance and
subrecipients has not complied with an Payment to a reimbursement basis. Rapid Transition to Housing: Defining
ESG program requirement,HUD will y3)HUD may suspend payments to' Homeless
the extent HUD deems it necessary to
give the recipient notice of this preclude the further expenditure of AGENCY:Office of the Assistant
determination and an opportunity to funds for affected activities. Secretary for Community Planning and
demonstrate,within the time prescribed (4)HUD may remove the recipient . Development,HUD.
by HUD and on the basis of substantial from participation in reallocations of ACTION:Final rule.
facts and data,that the recipient has funds under subpart D of this part.
complied with Emergency Solutions (5)HUD may deny matching credit for SUMMARY:The Homeless Emergency
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
renovations, alterations, equipment, land, and capital assets acquired through
capital leases) , acquired after September 29, 1995 and used in support of
Federal awards is allowable, provided that:
(1) For facilities acquisitions (excluding renovations and
alterations) costing over $10 million where the Federal Government's
reimbursement is expected to equal or exceed 40 percent of an asset's cost, the
non-profit organization prepares, prior to the acquisition or replacement of the
capital asset (s) , a justification that demonstrates the need for the facility in
the conduct of federally-sponsored activities. Upon request, the needs
justification must be provided to the Federal agency with cost cognizance
authority as a prerequisite to the continued allowability of interest on debt
and depreciation related to the facility. The needs justification for the
acquisition of a facility should include, at a minimum, the following:
(a) A statement of purpose and justification for facility
acquisition or replacement
(b) A statement as to why current facilities are not adequate
(c) A statement of planned future use of the facility
(d) A description of the financing agreement to be arranged
for the facility
(e) A summary of the building contract with estimated cost
' information and statement of source and use of funds
(f) A schedule of planned occupancy dates
(2) For facilities costing over $500, 000, the non-profit
organization prepares, prior to the acquisition or replacement of the facility,
a lease/purchase analysis in accordance with the provisions of Sec. _.30
through .37 of Circular A-110, which shows that a financed purchase or capital
lease is less costly to the organization than other leasing alternatives, on a
net present value basis. Discount rates used should be equal to the non-profit
organization's anticipated interest rates and should be no higher than the fair
market rate available to the non-profit organization from an unrelated ("arm's
length") third-party. The lease/purchase analysis shall include a comparison of
the net present value of the projected total cost comparisons of both
alternatives over the period the asset is expected to be used by the non-profit
organization. The cost comparisons associated with purchasing the facility shall
include the estimated purchase price, anticipated operating and maintenance
costs (including property taxes, if applicable) not included in the debt
financing, less any estimated asset salvage value at the end of the period
defined above. The cost comparison for a capital lease shall include the
estimated total lease payments, any estimated bargain purchase option, operating
and maintenance costs, and taxes not included in the capital leasing
arrangement, less any estimated credits due under the lease at the end of the
period defined above. Projected operating lease costs shall be based on the
anticipated cost of leasing comparable facilities at fair market rates under
rental agreements that would be renewed or reestablished over the period defined
above, and any expected maintenance costs and allowable property taxes to be
borne by the non-profit organization directly or as part of the lease
arrangement.
37
16
and the like are prorated individually as direct costs to
each category and to each award or other activity using a base most appropriate
to the particular cost being prorated.
b. This method is acceptable, provided each joint cost is prorated
using a base which accurately measures the benefits provided to each award or
14
The distribution shall be made in accordance with the bases described herein
unless it can be demonstrated that the use of. a different base would result in a
more equitable allocation of the costs, or that a more readily available base
would not increase the costs charged to sponsored awards. The results of
12
e or all activities; DEPARTMENT OF HOUSING AND
including citizen comments,complaint (vi)Reducing or terminating the URBAN DEVELOPMENT
determinations,and litigation.Reviews remaining grant of a subrecipient and
to determine compliance with specific reallocating those funds to other 24 CFR Parts 91,582,and 583
requirements of thispart will be subrecipients;and
q (vii)Making matching contributions (Docket No.FR-5333-F-02]
conducted as necessary,with or without before or as draws are made from the
prior notice to the recipient. RIN 2506-AC26
(2)If HUD determines preliminarily recipient's ESG grant.
that the recipient or one of its (2)HUD may change the method of Homeless Emergency Assistance and
subrecipients has not complied with an Payment to a reimbursement basis. Rapid Transition to Housing: Defining
ESG program requirement,HUD will y3)HUD may suspend payments to' Homeless
the extent HUD deems it necessary to
give the recipient notice of this preclude the further expenditure of AGENCY:Office of the Assistant
determination and an opportunity to funds for affected activities. Secretary for Community Planning and
demonstrate,within the time prescribed (4)HUD may remove the recipient . Development,HUD.
by HUD and on the basis of substantial from participation in reallocations of ACTION:Final rule.
facts and data,that the recipient has funds under subpart D of this part.
complied with Emergency Solutions (5)HUD may deny matching credit for SUMMARY:The Homeless Emergency
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
3 The actual interest cost claimed is predicated upon interest
( )
rates that are no higher than the fair market rate available to the non-profit
organization from an unrelated ("arm's length") third party.
(4) Investment earnings, including interest income, on bond or loan
principal, pending payment of the construction or acquisition costs, are used to
offset allowable interest cost. Arbitrage earnings reportable to the Internal
Revenue Service are not required to be offset against allowable interest costs.
(5) Reimbursements are limited to the least costly alternative based
on the total cost analysis required under subparagraph (b) . For example, if an
operating lease is determined to be less costly than purchasing through debt
financing, then reimbursement is limited to the amount determined if leasing had
been used. In all cases where a lease/purchase analysis is performed, Federal
reimbursement shall be based upon the least expensive alternative.
(6) Non-profit organizations are also subject to the following
conditions:
(a) Interest on debt incurred to finance or refinance assets
acquired before or reacquired after September 29, 1995, is not allowable.
(b) Interest attributable to fully depreciated assets is
unallowable.
(c) For debt arrangements over $1 million, unless the non-
profit organization makes an initial equity contribution to the asset purchase
of 25 percent or more, non-profit organizations shall reduce claims for interest
expense by an amount equal to imputed interest earnings on excess cash flow,
which is to be calculated as follows. Annually, non-profit organizations shall
prepare a cumulative (from the inception of the project) report of monthly cash
flows that includes inflows and outflows, regardless of the funding source.
Inflows consist of depreciation expense, amortization of capitalized
construction interest, and annual interest expense. For cash flow calculations,
the annual inflow figures shall be divided by the number of months in the year
(usually 12) that the building is in service for monthly amounts. Outflows
consist of initial equity contributions, debt principal payments (less the pro
rata share attributable to the unallowable costs of land) and interest payments.
Where cumulative inflows exceed cumulative outflows, interest shall be
calculated on the excess inflows for that period and be treated as a reduction
to allowable interest expense. The rate of interest to be used to compute
earnings on excess cash flows shall be the three month Treasury Bill closing
rate as of the last business day of that month.
(d) Substantial relocation of federally-sponsored activities
from a facility financed by indebtedness, the cost of which was funded in whole
or part through Federal reimbursements, to another facility prior to the
expiration of a period of 20 years requires notice to the Federal cognizant
agency. The extent of the relocation, the amount of the Federal participation in
the financing, and the depreciation and interest charged to date may require
negotiation and/or downward adjustments of replacement space charged to Federal
programs in the future.
(e) The allowable costs to acquire facilities and equipment
are limited to a fair market value available to the non-profit organization from
an unrelated ("arm's length") third party.
38
appropriate
to the particular cost being prorated.
b. This method is acceptable, provided each joint cost is prorated
using a base which accurately measures the benefits provided to each award or
14
The distribution shall be made in accordance with the bases described herein
unless it can be demonstrated that the use of. a different base would result in a
more equitable allocation of the costs, or that a more readily available base
would not increase the costs charged to sponsored awards. The results of
12
e or all activities; DEPARTMENT OF HOUSING AND
including citizen comments,complaint (vi)Reducing or terminating the URBAN DEVELOPMENT
determinations,and litigation.Reviews remaining grant of a subrecipient and
to determine compliance with specific reallocating those funds to other 24 CFR Parts 91,582,and 583
requirements of thispart will be subrecipients;and
q (vii)Making matching contributions (Docket No.FR-5333-F-02]
conducted as necessary,with or without before or as draws are made from the
prior notice to the recipient. RIN 2506-AC26
(2)If HUD determines preliminarily recipient's ESG grant.
that the recipient or one of its (2)HUD may change the method of Homeless Emergency Assistance and
subrecipients has not complied with an Payment to a reimbursement basis. Rapid Transition to Housing: Defining
ESG program requirement,HUD will y3)HUD may suspend payments to' Homeless
the extent HUD deems it necessary to
give the recipient notice of this preclude the further expenditure of AGENCY:Office of the Assistant
determination and an opportunity to funds for affected activities. Secretary for Community Planning and
demonstrate,within the time prescribed (4)HUD may remove the recipient . Development,HUD.
by HUD and on the basis of substantial from participation in reallocations of ACTION:Final rule.
facts and data,that the recipient has funds under subpart D of this part.
complied with Emergency Solutions (5)HUD may deny matching credit for SUMMARY:The Homeless Emergency
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
b. For non-profit organizations subject to "full coverage" ' under the Cost
Accounting Standards (CAS) as defined at 48 CFR 9903.201, the interest
allowability provisions of subparagraph a do not apply. Instead, these
organizations' sponsored agreements are subject to CAS 414 (48 CFR 9903.414) ,
cost of money as an element of the cost of facilities capital, and CAS 417 (48
CFR 9903 .417) , cost of money as an element of the cost of capital assets under
construction.
c. The following definitions are to be used for purposes of this
paragraph:
(1) Re-acquired assets means assets held by the non-profit
organization prior to September 29, 1995 that have again come to be held by
the organization, whether through repurchase or refinancing. It does not include
assets acquired to replace older assets.
(2) Initial equity contribution means the amount or value of
contributions made by non-profit organizations for the acquisition of the asset
or prior to occupancy of facilities.
(3) Asset costs means the capitalizable costs of an asset, including
construction costs, acquisition costs, and other such costs capitalized in
accordance with GAAP.
24 . Labor relations costs. Costs incurred in maintaining satisfactory
relations between the organization and its employees, including costs of labor
management committees, employee publications, and other related activities are
allowable.
25. Lobbying.
a. Notwithstanding other provisions of this Circular, costs associated
with the following activities are unallowable:
(1) Attempts to influence the outcomes of any Federal, State, or
local election, referendum, initiative, or similar procedure, through in kind or
cash contributions, endorsements, publicity, or similar activity;
(2) Establishing, administering, contributing to, or paying the
expenses of a political party, campaign, political action committee, or other
organization established for the purpose of influencing the outcomes of
elections;
(3) Any attempt to influence: (i) The introduction of Federal or
State legislation; or (ii) the enactment or modification of any pending Federal
or State legislation through communication with any member or employee of the
Congress or State legislature (including efforts to influence State or local
officials to engage in similar lobbying activity) , or with any Government
official or employee in connection with a decision to sign or veto enrolled
legislation;
(4) Any attempt to influence: (i) The introduction of Federal or
State legislation; or (ii) the enactment or modification of any pending Federal
or State legislation by preparing, distributing or using publicity or
39
ss, the cost of which was funded in whole
or part through Federal reimbursements, to another facility prior to the
expiration of a period of 20 years requires notice to the Federal cognizant
agency. The extent of the relocation, the amount of the Federal participation in
the financing, and the depreciation and interest charged to date may require
negotiation and/or downward adjustments of replacement space charged to Federal
programs in the future.
(e) The allowable costs to acquire facilities and equipment
are limited to a fair market value available to the non-profit organization from
an unrelated ("arm's length") third party.
38
appropriate
to the particular cost being prorated.
b. This method is acceptable, provided each joint cost is prorated
using a base which accurately measures the benefits provided to each award or
14
The distribution shall be made in accordance with the bases described herein
unless it can be demonstrated that the use of. a different base would result in a
more equitable allocation of the costs, or that a more readily available base
would not increase the costs charged to sponsored awards. The results of
12
e or all activities; DEPARTMENT OF HOUSING AND
including citizen comments,complaint (vi)Reducing or terminating the URBAN DEVELOPMENT
determinations,and litigation.Reviews remaining grant of a subrecipient and
to determine compliance with specific reallocating those funds to other 24 CFR Parts 91,582,and 583
requirements of thispart will be subrecipients;and
q (vii)Making matching contributions (Docket No.FR-5333-F-02]
conducted as necessary,with or without before or as draws are made from the
prior notice to the recipient. RIN 2506-AC26
(2)If HUD determines preliminarily recipient's ESG grant.
that the recipient or one of its (2)HUD may change the method of Homeless Emergency Assistance and
subrecipients has not complied with an Payment to a reimbursement basis. Rapid Transition to Housing: Defining
ESG program requirement,HUD will y3)HUD may suspend payments to' Homeless
the extent HUD deems it necessary to
give the recipient notice of this preclude the further expenditure of AGENCY:Office of the Assistant
determination and an opportunity to funds for affected activities. Secretary for Community Planning and
demonstrate,within the time prescribed (4)HUD may remove the recipient . Development,HUD.
by HUD and on the basis of substantial from participation in reallocations of ACTION:Final rule.
facts and data,that the recipient has funds under subpart D of this part.
complied with Emergency Solutions (5)HUD may deny matching credit for SUMMARY:The Homeless Emergency
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
propaganda, or by urging members of the general public or any segment thereof to
contribute to or participate in any mass demonstration, march, rally,
fundraising drive, lobbying campaign or letter writing or telephone campaign; or
(5) Legislative liaison activities, including attendance at
legislative sessions or committee hearings, gathering information regarding
legislation, and analyzing the effect of legislation, when such activities are
carried on in support of or in knowing preparation for an effort to engage in
unallowable lobbying.
b. The following activities are excepted from the coverage of
subparagraph a:
(1) Providing a technical and factual presentation of information on
a topic directly related to the performance of a grant, contract or other
agreement through hearing testimony, statements or letters to the Congress or a
State legislature, or subdivision, member, or cognizant staff member thereof, in
response to a documented request (including a Congressional Record notice
requesting testimony or statements for the record at a regularly scheduled
hearing) made by the recipient member, legislative body or subdivision, or a
cognizant staff member thereof; provided such information is readily obtainable
and can be readily put in deliverable form; and further provided that costs
under this section for travel, lodging or meals are unallowable unless incurred
to offer testimony at a regularly scheduled Congressional hearing pursuant to a
written request for such presentation made by the Chairman or Ranking Minority
Member of the Committee or Subcommittee conducting such hearing.
(2) Any lobbying made unallowable by subparagraph a(3) to influence
State legislation in order to directly reduce the cost, or to avoid material
impairment of the organization's authority to perform the grant, contract, or
other agreement.
(3) Any activity specifically authorized by statute to be undertaken
with funds from the grant, contract, or other agreement.
c. (1) When an organization seeks reimbursement for indirect costs,
total lobbying costs shall be separately identified in the indirect cost rate
proposal, and thereafter treated as other unallowable activity costs in
accordance with the procedures of subparagraph B.3 of Attachment A.
(2) Organizations shall. submit, as part of the annual indirect cost
rate proposal, a certification that the requirements and standards of this
paragraph have been complied with.
(3) Organizations shall maintain adequate records to demonstrate
that the determination of costs as being allowable or unallowable pursuant to
paragraph 25 complies with the requirements of this Circular.
(4) Time logs, calendars, or similar records shall not be required
to be created for purposes of complying with this paragraph during any
particular calendar month when: (1) the employee engages in lobbying (as defined
in subparagraphs (a) and (b) ) 25 percent or less of the employee's compensated
hours of employment during that calendar month, and (2) within the preceding
five-year period, the organization has not materially misstated allowable or
unallowable costs of any nature, including legislative lobbying costs. When
conditions (1) and (2) are met, organizations are not required to establish
records to support the allowabliliy of claimed costs in addition to records
40
n from
an unrelated ("arm's length") third party.
38
appropriate
to the particular cost being prorated.
b. This method is acceptable, provided each joint cost is prorated
using a base which accurately measures the benefits provided to each award or
14
The distribution shall be made in accordance with the bases described herein
unless it can be demonstrated that the use of. a different base would result in a
more equitable allocation of the costs, or that a more readily available base
would not increase the costs charged to sponsored awards. The results of
12
e or all activities; DEPARTMENT OF HOUSING AND
including citizen comments,complaint (vi)Reducing or terminating the URBAN DEVELOPMENT
determinations,and litigation.Reviews remaining grant of a subrecipient and
to determine compliance with specific reallocating those funds to other 24 CFR Parts 91,582,and 583
requirements of thispart will be subrecipients;and
q (vii)Making matching contributions (Docket No.FR-5333-F-02]
conducted as necessary,with or without before or as draws are made from the
prior notice to the recipient. RIN 2506-AC26
(2)If HUD determines preliminarily recipient's ESG grant.
that the recipient or one of its (2)HUD may change the method of Homeless Emergency Assistance and
subrecipients has not complied with an Payment to a reimbursement basis. Rapid Transition to Housing: Defining
ESG program requirement,HUD will y3)HUD may suspend payments to' Homeless
the extent HUD deems it necessary to
give the recipient notice of this preclude the further expenditure of AGENCY:Office of the Assistant
determination and an opportunity to funds for affected activities. Secretary for Community Planning and
demonstrate,within the time prescribed (4)HUD may remove the recipient . Development,HUD.
by HUD and on the basis of substantial from participation in reallocations of ACTION:Final rule.
facts and data,that the recipient has funds under subpart D of this part.
complied with Emergency Solutions (5)HUD may deny matching credit for SUMMARY:The Homeless Emergency
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
already required or maintained. Also, when conditions (1) and (2) are met, the
absence of time logs, calendars, or similar records will not serve as a basis
for disallowing costs by contesting estimates of lobbying time spent by
employees during a calendar month.
(5) Agencies shall establish procedures for resolving in advance, in
consultation with OMB, any significant questions or disagreements concerning the
interpretation or application of paragraph 25. Any such advance resolution shall
be binding in any subsequent settlements, audits or investigations with respect
to that grant or contract for purposes of interpretation of this Circular;
provided, however, that this shall not be construed to prevent a contractor or
grantee from contesting the lawfulness of such a determination.
d. Executive lobbying costs. Costs incurred in attempting to
improperly influence either directly or indirectly, an employee or officer of
' the Executive Branch of the Federal Government to give consideration or to act
regarding a sponsored agreement or a regulatory matter are unallowable. Improper
influence means any influence that induces or tends to induce a Federal employee
or officer to give consideration or to act regarding a federally-sponsored
agreement or regulatory matter on any basis other than the merits of the matter.
26. Losses on other sponsored agreements or contracts. Any excess of costs
over income on any award is unallowable as a cost of any other award. This
includes, but is not limited to, the organization's contributed portion by
reason of cost sharing agreements or any under-recoveries through negotiation of
lump sums for, or ceilings on, indirect costs.
27. Maintenance and repair costs. Costs incurred for necessary maintenance,
repair, or upkeep of buildings and equipment (including Federal property unless
otherwise provided for) which neither add to the permanent value of the property
nor appreciably prolong its intended life, but keep it in an efficient operating
condition, are allowable. Costs incurred for improvements which add to the
permanent value of the buildings and equipment or appreciably prolong their
intended life shall be treated as capital expenditures (see paragraph 15) .
28. Materials and supplies costs.
a. Costs incurred for materials, supplies, and fabricated parts necessary
to carry out a Federal award are allowable.
b. Purchased materials and supplies shall 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.
c. Only materials and supplies actually used for the performance of a
Federal award may be charged as direct costs.
d. Where federally-donated or furnished materials are used in performing
the Federal award, such materials will be used without charge.
41
d (2) within the preceding
five-year period, the organization has not materially misstated allowable or
unallowable costs of any nature, including legislative lobbying costs. When
conditions (1) and (2) are met, organizations are not required to establish
records to support the allowabliliy of claimed costs in addition to records
40
n from
an unrelated ("arm's length") third party.
38
appropriate
to the particular cost being prorated.
b. This method is acceptable, provided each joint cost is prorated
using a base which accurately measures the benefits provided to each award or
14
The distribution shall be made in accordance with the bases described herein
unless it can be demonstrated that the use of. a different base would result in a
more equitable allocation of the costs, or that a more readily available base
would not increase the costs charged to sponsored awards. The results of
12
e or all activities; DEPARTMENT OF HOUSING AND
including citizen comments,complaint (vi)Reducing or terminating the URBAN DEVELOPMENT
determinations,and litigation.Reviews remaining grant of a subrecipient and
to determine compliance with specific reallocating those funds to other 24 CFR Parts 91,582,and 583
requirements of thispart will be subrecipients;and
q (vii)Making matching contributions (Docket No.FR-5333-F-02]
conducted as necessary,with or without before or as draws are made from the
prior notice to the recipient. RIN 2506-AC26
(2)If HUD determines preliminarily recipient's ESG grant.
that the recipient or one of its (2)HUD may change the method of Homeless Emergency Assistance and
subrecipients has not complied with an Payment to a reimbursement basis. Rapid Transition to Housing: Defining
ESG program requirement,HUD will y3)HUD may suspend payments to' Homeless
the extent HUD deems it necessary to
give the recipient notice of this preclude the further expenditure of AGENCY:Office of the Assistant
determination and an opportunity to funds for affected activities. Secretary for Community Planning and
demonstrate,within the time prescribed (4)HUD may remove the recipient . Development,HUD.
by HUD and on the basis of substantial from participation in reallocations of ACTION:Final rule.
facts and data,that the recipient has funds under subpart D of this part.
complied with Emergency Solutions (5)HUD may deny matching credit for SUMMARY:The Homeless Emergency
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
29. Meetings and conferences. Costs of meetings and conferences, the primary
purpose of which is the dissemination of technical information, are allowable.
This includes costs of meals, transportation, rental of facilities, speakers'
fees, and other items incidental to such meetings or conferences. But see
Attachment B, paragraphs 14 . , Entertainment costs, and 33. , Participant support
costs.
30. Memberships, subscriptions, and professional activity costs.
a. Costs of the non-profit organization's membership in business,
technical, and professional organizations are allowable.
b. Costs of the non-profit organization's subscriptions to business,
professional, and technical periodicals are allowable.
c. Costs of membership in any civic or community organization are .
allowable with prior approval by Federal cognizant agency.
d. Costs of membership in any country club or social or dining club or
organization are unallowable.
31. Organization costs. Expenditures, such as incorporation fees, brokers'
fees, fees to promoters, organizers or management consultants, attorneys,
accountants, or investment counselors, whether or not employees of the
organization, in connection with establishment or reorganization of an
organization, are unallowable except with prior approval of the awarding agency.
32. Page charges in professional journals. Page charges for professional
journal publications are allowable as a necessary part of research costs, where:
a. The research papers report work supported by the Federal Government;
and
b. The charges are levied impartially on all research papers published by
the journal, whether or not by federally-sponsored authors.
33 . Participant support costs. Participant support costs are direct costs for
items such as stipends or subsistence allowances, travel allowances, and
registration fees paid to or on behalf of participants or trainees (but not
employees) in connection with meetings, conferences, symposia, or training
projects. These costs are allowable with the prior approval of the awarding
agency.
34 . Patent costs.
a. The following costs relating to patent and copyright matters are
allowable: (i) cost of preparing disclosures, reports, and other documents
required by the Federal award and of searching the art to the extent necessary
to make such disclosures; (ii) cost of preparing documents and any other patent
costs in connection.with the filing and prosecution of a United States patent
application where title or royalty-free license is required by the Federal
Government to be conveyed to the Federal Government; and (iii) general
counseling services relating to patent and copyright matters, such as advice on
patent and copyright laws, regulations, clauses, and employee agreements (but
42
may be charged as direct costs.
d. Where federally-donated or furnished materials are used in performing
the Federal award, such materials will be used without charge.
41
d (2) within the preceding
five-year period, the organization has not materially misstated allowable or
unallowable costs of any nature, including legislative lobbying costs. When
conditions (1) and (2) are met, organizations are not required to establish
records to support the allowabliliy of claimed costs in addition to records
40
n from
an unrelated ("arm's length") third party.
38
appropriate
to the particular cost being prorated.
b. This method is acceptable, provided each joint cost is prorated
using a base which accurately measures the benefits provided to each award or
14
The distribution shall be made in accordance with the bases described herein
unless it can be demonstrated that the use of. a different base would result in a
more equitable allocation of the costs, or that a more readily available base
would not increase the costs charged to sponsored awards. The results of
12
e or all activities; DEPARTMENT OF HOUSING AND
including citizen comments,complaint (vi)Reducing or terminating the URBAN DEVELOPMENT
determinations,and litigation.Reviews remaining grant of a subrecipient and
to determine compliance with specific reallocating those funds to other 24 CFR Parts 91,582,and 583
requirements of thispart will be subrecipients;and
q (vii)Making matching contributions (Docket No.FR-5333-F-02]
conducted as necessary,with or without before or as draws are made from the
prior notice to the recipient. RIN 2506-AC26
(2)If HUD determines preliminarily recipient's ESG grant.
that the recipient or one of its (2)HUD may change the method of Homeless Emergency Assistance and
subrecipients has not complied with an Payment to a reimbursement basis. Rapid Transition to Housing: Defining
ESG program requirement,HUD will y3)HUD may suspend payments to' Homeless
the extent HUD deems it necessary to
give the recipient notice of this preclude the further expenditure of AGENCY:Office of the Assistant
determination and an opportunity to funds for affected activities. Secretary for Community Planning and
demonstrate,within the time prescribed (4)HUD may remove the recipient . Development,HUD.
by HUD and on the basis of substantial from participation in reallocations of ACTION:Final rule.
facts and data,that the recipient has funds under subpart D of this part.
complied with Emergency Solutions (5)HUD may deny matching credit for SUMMARY:The Homeless Emergency
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
see paragraphs 37. , Professional services costs, and 44 . , Royalties and other
costs for use of patents and copyrights) .
b. The following costs related to patent and copyright matter are
unallowable:
(1) Cost of preparing disclosures, reports, and other documents and
of searching the art to the extent necessary to make disclosures not required by
the award
(2) Costs in connection with filing and prosecuting any foreign
patent application, or any United States patent application, where the Federal
award does not require conveying title or a royalty-free license to the Federal
Government (but see paragraph 45. , Royalties and other costs for use of patents
and copyrights) .
35. Plant and homeland security costs. Necessary and reasonable expenses
incurred for routine and homeland security to protect facilities, personnel, and
work products are allowable. Such costs include, but are not limited to, wages
and uniforms of personnel engaged in security activities; equipment; barriers;
contractual security services; consultants; etc. Capital expenditures for
homeland and plant security purposes are subject to paragraph 15. , Equipment and
other capital expenditures, of this Circular.
36. Pre-agreement costs. Pre-award costs are those incurred prior to the
effective date of the award directly pursuant to the negotiation and in
anticipation of the award where such costs are necessary to comply with the
proposed delivery schedule or period of performance. Such costs are allowable
only to the extent that they would have been allowable if incurred after the
date of the award and only with the written approval of the awarding agency.
37. Professional services costs.
a. Costs of professional and consultant services rendered by persons who
are members of a particular profession or possess a special skill, and who are
not officers or employees of the non-profit organization, are allowable, subject
to subparagraphs b and c when reasonable in relation to the services rendered
and when not contingent upon recovery of the costs from the Federal Government.
In addition, legal and related services are limited under Attachment B,
paragraph 10.
b. In determining the allowability of costs in a particular case, no
single factor or any special combination of factors is necessarily
determinative. However, the following factors are relevant:
(1) The nature and scope of the service rendered in relation to the
service required.
(2) The necessity of contracting for the service, considering the
non-profit organization's capability in the particular area.
(3) The past pattern of such costs, particularly in the years prior
to Federal awards.
43
s advice on
patent and copyright laws, regulations, clauses, and employee agreements (but
42
may be charged as direct costs.
d. Where federally-donated or furnished materials are used in performing
the Federal award, such materials will be used without charge.
41
d (2) within the preceding
five-year period, the organization has not materially misstated allowable or
unallowable costs of any nature, including legislative lobbying costs. When
conditions (1) and (2) are met, organizations are not required to establish
records to support the allowabliliy of claimed costs in addition to records
40
n from
an unrelated ("arm's length") third party.
38
appropriate
to the particular cost being prorated.
b. This method is acceptable, provided each joint cost is prorated
using a base which accurately measures the benefits provided to each award or
14
The distribution shall be made in accordance with the bases described herein
unless it can be demonstrated that the use of. a different base would result in a
more equitable allocation of the costs, or that a more readily available base
would not increase the costs charged to sponsored awards. The results of
12
e or all activities; DEPARTMENT OF HOUSING AND
including citizen comments,complaint (vi)Reducing or terminating the URBAN DEVELOPMENT
determinations,and litigation.Reviews remaining grant of a subrecipient and
to determine compliance with specific reallocating those funds to other 24 CFR Parts 91,582,and 583
requirements of thispart will be subrecipients;and
q (vii)Making matching contributions (Docket No.FR-5333-F-02]
conducted as necessary,with or without before or as draws are made from the
prior notice to the recipient. RIN 2506-AC26
(2)If HUD determines preliminarily recipient's ESG grant.
that the recipient or one of its (2)HUD may change the method of Homeless Emergency Assistance and
subrecipients has not complied with an Payment to a reimbursement basis. Rapid Transition to Housing: Defining
ESG program requirement,HUD will y3)HUD may suspend payments to' Homeless
the extent HUD deems it necessary to
give the recipient notice of this preclude the further expenditure of AGENCY:Office of the Assistant
determination and an opportunity to funds for affected activities. Secretary for Community Planning and
demonstrate,within the time prescribed (4)HUD may remove the recipient . Development,HUD.
by HUD and on the basis of substantial from participation in reallocations of ACTION:Final rule.
facts and data,that the recipient has funds under subpart D of this part.
complied with Emergency Solutions (5)HUD may deny matching credit for SUMMARY:The Homeless Emergency
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
(4) The impact of Federal awards on the non-profit organization's
business (i.e. , what new problems have arisen) .
(5) Whether the proportion of Federal work to the non-profit
organization's total business is such as to influence the non-profit
organization in favor of incurring the cost, particularly where the services
rendered are not of a continuing nature and have little relationship to work
under Federal grants and contracts.
(6) Whether the service can be performed more economically by direct
employment rather than contracting.
(7) The qualifications of the individual or concern rendering the
service and the customary fees charged, especially on non-Federal awards.
(8) Adequacy of the contractual agreement for the service (e.g. ,
description of the service, estimate of time required, rate of compensation, and
termination provisions) .
c. In addition to the factors in subparagraph b, retainer fees to be
allowable must be supported by evidence of bona fide services available or
rendered
38. Publication and printing costs.
a. Publication costs include the costs of printing (including the
processes of composition, plate-making, press work, binding, and the end
products produced by such processes) , distribution, promotion, mailing, and
general handling. Publication costs also include page charges in professional
publications.
b. If these costs are not identifiable with a particular cost objective,
they should be allocated as indirect costs to all benefiting activities of the
non-profit organization.
c. Page charges for professional journal publications are allowable as a
necessary part of research costs where:
(1) The research papers report work supported by the Federal
Government: and
(2) The charges are levied impartially on all research papers
published by the journal, whether or not by federally-sponsored authors.
39. Rearrangement and alteration costs. Costs incurred for ordinary or normal
rearrangement and alteration of facilities are allowable. Special arrangement
and alteration costs incurred specifically for the project are allowable with
the prior approval of the awarding agency.
40. Reconversion costs. Costs incurred in the restoration or rehabilitation of
the non-profit organization's facilities to approximately the same condition
existing immediately prior to commencement of Federal awards, less costs related
to normal wear and tear, are allowable.
44
service required.
(2) The necessity of contracting for the service, considering the
non-profit organization's capability in the particular area.
(3) The past pattern of such costs, particularly in the years prior
to Federal awards.
43
s advice on
patent and copyright laws, regulations, clauses, and employee agreements (but
42
may be charged as direct costs.
d. Where federally-donated or furnished materials are used in performing
the Federal award, such materials will be used without charge.
41
d (2) within the preceding
five-year period, the organization has not materially misstated allowable or
unallowable costs of any nature, including legislative lobbying costs. When
conditions (1) and (2) are met, organizations are not required to establish
records to support the allowabliliy of claimed costs in addition to records
40
n from
an unrelated ("arm's length") third party.
38
appropriate
to the particular cost being prorated.
b. This method is acceptable, provided each joint cost is prorated
using a base which accurately measures the benefits provided to each award or
14
The distribution shall be made in accordance with the bases described herein
unless it can be demonstrated that the use of. a different base would result in a
more equitable allocation of the costs, or that a more readily available base
would not increase the costs charged to sponsored awards. The results of
12
e or all activities; DEPARTMENT OF HOUSING AND
including citizen comments,complaint (vi)Reducing or terminating the URBAN DEVELOPMENT
determinations,and litigation.Reviews remaining grant of a subrecipient and
to determine compliance with specific reallocating those funds to other 24 CFR Parts 91,582,and 583
requirements of thispart will be subrecipients;and
q (vii)Making matching contributions (Docket No.FR-5333-F-02]
conducted as necessary,with or without before or as draws are made from the
prior notice to the recipient. RIN 2506-AC26
(2)If HUD determines preliminarily recipient's ESG grant.
that the recipient or one of its (2)HUD may change the method of Homeless Emergency Assistance and
subrecipients has not complied with an Payment to a reimbursement basis. Rapid Transition to Housing: Defining
ESG program requirement,HUD will y3)HUD may suspend payments to' Homeless
the extent HUD deems it necessary to
give the recipient notice of this preclude the further expenditure of AGENCY:Office of the Assistant
determination and an opportunity to funds for affected activities. Secretary for Community Planning and
demonstrate,within the time prescribed (4)HUD may remove the recipient . Development,HUD.
by HUD and on the basis of substantial from participation in reallocations of ACTION:Final rule.
facts and data,that the recipient has funds under subpart D of this part.
complied with Emergency Solutions (5)HUD may deny matching credit for SUMMARY:The Homeless Emergency
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
41. Recruiting costs.
a. Subject to subparagraphs b, c, and d, and provided that the size of
the staff recruited and maintained is in keeping with workload requirements,
costs of "help wanted". advertising, operating costs of an employment office
necessary to secure and maintain an adequate staff, costs of operating an
aptitude and educational testing program, travel costs of employees while
engaged in recruiting personnel, travel costs of applicants for interviews for
prospective employment, and relocation costs incurred incident to recruitment of
new employees, are allowable to the extent that such costs are incurred pursuant
to a well-managed recruitment program. Where the organization uses employment
agencies, costs that are not in excess of standard commercial rates for such
services are allowable.
b. In publications, costs of help wanted advertising that includes color,
includes advertising material for other than recruitment purposes, or is
excessive in size (taking into consideration recruitment purposes for which
intended and normal organizational practices in this respect) , are unallowable.
c. Costs of help wanted advertising, special emoluments, fringe benefits,
and salary allowances incurred to attract professional personnel from other
organizations that do not meet the test of reasonableness or do not conform with
the established practices of the organization, are unallowable.
d. Where relocation costs incurred incident to recruitment of a new
employee have been allowed either as an allocable direct or indirect cost, and
the newly hired employee resigns for reasons within his control within twelve
months after being hired, the organization will be required to refund or credit
such relocation costs to the Federal Government.
42. Relocation costs.
a. Relocation costs are costs incident to the permanent change of duty
assignment (for an indefinite period or for a stated period of not less than 12
months) of an existing employee or upon recruitment of a new employee.
Relocation costs are allowable, subject to the limitation described in
subparagraphs b, c, and d, provided that:
(1) The move is for the benefit of the employer.
(2) Reimbursement to the employee is in accordance with an
established written policy consistently followed by the employer.
(3) The reimbursement does not exceed the employee's actual (or
reasonably estimated) expenses.
b. Allowable relocation costs for current employees are limited to the
following:
(1) The costs of transportation of the employee, members of his
immediate family and his household, and personal effects to the new location.
45
to Federal awards.
43
s advice on
patent and copyright laws, regulations, clauses, and employee agreements (but
42
may be charged as direct costs.
d. Where federally-donated or furnished materials are used in performing
the Federal award, such materials will be used without charge.
41
d (2) within the preceding
five-year period, the organization has not materially misstated allowable or
unallowable costs of any nature, including legislative lobbying costs. When
conditions (1) and (2) are met, organizations are not required to establish
records to support the allowabliliy of claimed costs in addition to records
40
n from
an unrelated ("arm's length") third party.
38
appropriate
to the particular cost being prorated.
b. This method is acceptable, provided each joint cost is prorated
using a base which accurately measures the benefits provided to each award or
14
The distribution shall be made in accordance with the bases described herein
unless it can be demonstrated that the use of. a different base would result in a
more equitable allocation of the costs, or that a more readily available base
would not increase the costs charged to sponsored awards. The results of
12
e or all activities; DEPARTMENT OF HOUSING AND
including citizen comments,complaint (vi)Reducing or terminating the URBAN DEVELOPMENT
determinations,and litigation.Reviews remaining grant of a subrecipient and
to determine compliance with specific reallocating those funds to other 24 CFR Parts 91,582,and 583
requirements of thispart will be subrecipients;and
q (vii)Making matching contributions (Docket No.FR-5333-F-02]
conducted as necessary,with or without before or as draws are made from the
prior notice to the recipient. RIN 2506-AC26
(2)If HUD determines preliminarily recipient's ESG grant.
that the recipient or one of its (2)HUD may change the method of Homeless Emergency Assistance and
subrecipients has not complied with an Payment to a reimbursement basis. Rapid Transition to Housing: Defining
ESG program requirement,HUD will y3)HUD may suspend payments to' Homeless
the extent HUD deems it necessary to
give the recipient notice of this preclude the further expenditure of AGENCY:Office of the Assistant
determination and an opportunity to funds for affected activities. Secretary for Community Planning and
demonstrate,within the time prescribed (4)HUD may remove the recipient . Development,HUD.
by HUD and on the basis of substantial from participation in reallocations of ACTION:Final rule.
facts and data,that the recipient has funds under subpart D of this part.
complied with Emergency Solutions (5)HUD may deny matching credit for SUMMARY:The Homeless Emergency
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
(2) The costs of finding a new home, such as advance trips by
employees and spouses to locate living quarters and temporary lodging during the
transition period, up to maximum period of 30 days, including advance trip time.
(3) Closing costs, such as brokerage, legal, and appraisal fees,
incident to the disposition of the employee's former home. These costs, together
with those described in (4) , are limited to 8 percent of the sales price of the
employee's former home.
(4) The continuing costs of ownership of the vacant former home
after the settlement or lease date of the employee's new permanent home, such as
maintenance of buildings and grounds (exclusive of fixing up expenses) ,
utilities, taxes, and property insurance.
(5) Other necessary. and reasonable expenses normally incident to
relocation, such as the costs of canceling an unexpired lease, disconnecting and
reinstalling household appliances, and purchasing insurance against loss of or
damages to personal property. The cost of canceling an unexpired lease is
limited to three times the monthly rental..
c. Allowable relocation costs for new employees are limited to those
described in (1) and (2) of subparagraph b. When relocation costs incurred
incident to the recruitment of new employees have been allowed either as a
direct or indirect cost and the employee resigns for reasons within his control
within 12 months after hire, the organization shall refund or credit the Federal
Government for its share of the cost. However, the costs of travel to an
overseas location shall be considered travel costs in accordance with paragraph
50 and not relocation costs for the purpose of this paragraph if dependents are
not permitted at the location for any reason and the costs do not include costs
of transporting household goods.
d. The following costs related to relocation are unallowable:
(1) Fees and other costs associated with acquiring a new home.
(2) A loss on the sale of a former home.
(3) Continuing mortgage principal and interest payments on a home
being sold.
(4) Income taxes paid by an employee related to reimbursed
relocation costs.
43 . Rental costs of buildings and equipment.
a. Subject to the limitations described in subparagraphs b. through d. of
this paragraph 43, rental costs are allowable to the extent that the rates are
reasonable in light of such factors as: rental costs of comparable property, if
any; market conditions in the area; alternatives available; and, the type, life
expectancy, condition, and value of the property leased. Rental arrangements
should be reviewed periodically to determine if circumstances have changed and,
other options are available.
b. Rental costs under "sale and lease back" arrangements are allowable
only up to the amount that would be allowed had the non-profit .organization
46
costs.
d. Where federally-donated or furnished materials are used in performing
the Federal award, such materials will be used without charge.
41
d (2) within the preceding
five-year period, the organization has not materially misstated allowable or
unallowable costs of any nature, including legislative lobbying costs. When
conditions (1) and (2) are met, organizations are not required to establish
records to support the allowabliliy of claimed costs in addition to records
40
n from
an unrelated ("arm's length") third party.
38
appropriate
to the particular cost being prorated.
b. This method is acceptable, provided each joint cost is prorated
using a base which accurately measures the benefits provided to each award or
14
The distribution shall be made in accordance with the bases described herein
unless it can be demonstrated that the use of. a different base would result in a
more equitable allocation of the costs, or that a more readily available base
would not increase the costs charged to sponsored awards. The results of
12
e or all activities; DEPARTMENT OF HOUSING AND
including citizen comments,complaint (vi)Reducing or terminating the URBAN DEVELOPMENT
determinations,and litigation.Reviews remaining grant of a subrecipient and
to determine compliance with specific reallocating those funds to other 24 CFR Parts 91,582,and 583
requirements of thispart will be subrecipients;and
q (vii)Making matching contributions (Docket No.FR-5333-F-02]
conducted as necessary,with or without before or as draws are made from the
prior notice to the recipient. RIN 2506-AC26
(2)If HUD determines preliminarily recipient's ESG grant.
that the recipient or one of its (2)HUD may change the method of Homeless Emergency Assistance and
subrecipients has not complied with an Payment to a reimbursement basis. Rapid Transition to Housing: Defining
ESG program requirement,HUD will y3)HUD may suspend payments to' Homeless
the extent HUD deems it necessary to
give the recipient notice of this preclude the further expenditure of AGENCY:Office of the Assistant
determination and an opportunity to funds for affected activities. Secretary for Community Planning and
demonstrate,within the time prescribed (4)HUD may remove the recipient . Development,HUD.
by HUD and on the basis of substantial from participation in reallocations of ACTION:Final rule.
facts and data,that the recipient has funds under subpart D of this part.
complied with Emergency Solutions (5)HUD may deny matching credit for SUMMARY:The Homeless Emergency
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
continued to own the property. This amount would include expenses such as
depreciation or use allowance, maintenance, taxes, and insurance.
c. Rental costs under "less-than-arms-length" leases are allowable only up
to the amount (as explained in subparagraph b. of this paragraph 43. ) that would
be allowed had title to the property vested in the non-profit organization. For
this purpose, a less-than-arms-length lease is one under which one party to the
lease agreement is able to control or substantially influence the actions of the
other. Such leases include, but are not limited to those between (i) divisions
of a non-profit organization; (ii) non-profit organizations under common control
through common officers, directors, or members; and (iii) a non-profit
organization and a director, trustee, officer, or key employee of the non-profit
organization or his immediate family, either directly or through corporations,
trusts, or similar arrangements in which they hold a controlling interest. For
example, a non-profit organization may establish a separate corporation for the
sole purpose of owning property and leasing it back to the non-profit
organization.
d. Rental costs under leases which are required to be treated as capital
leases under GAAP are allowable only up to the amount (as explained in
subparagraph b) that would be allowed had the non-profit organization purchased
the property on the date the lease agreement was executed. The provisions of
Financial Accounting Standards Board Statement 13, Accounting for Leases, shall
be used to determine whether a lease is a capital lease. Interest costs related
to capital leases are allowable to the extent they meet the criteria in
subparagraph 23. Unallowable costs include amounts paid for profit, management
fees, and taxes that would not have been incurred had the non-profit
organization purchased the facility.
44. Royalties and other costs for use of patents and copyrights.
a. Royalties on a patent or copyright or amortization of the cost of
acquiring by purchase a copyright, patent, or rights thereto, necessary for the
proper performance of the award are allowable unless:
(1) The Federal Government has a license or the right to free use of
the patent or copyright.
(2) The patent or copyright has been adjudicated to be invalid, or
has been administratively determined to be invalid.
(3) The patent or copyright is considered to be unenforceable.
(4) The patent or copyright is expired.
b. Special care should be exercised in determining reasonableness where
the royalties may have arrived at as a result of less-than-arm's-length
bargaining, e.g. :
(1) Royalties paid to persons, including corporations, affiliated
with the non-profit organization.
(2) Royalties paid to unaffiliated parties, including corporations,
under an agreement entered into in contemplation that a Federal award would be
made.
47
the Federal award, such materials will be used without charge.
41
d (2) within the preceding
five-year period, the organization has not materially misstated allowable or
unallowable costs of any nature, including legislative lobbying costs. When
conditions (1) and (2) are met, organizations are not required to establish
records to support the allowabliliy of claimed costs in addition to records
40
n from
an unrelated ("arm's length") third party.
38
appropriate
to the particular cost being prorated.
b. This method is acceptable, provided each joint cost is prorated
using a base which accurately measures the benefits provided to each award or
14
The distribution shall be made in accordance with the bases described herein
unless it can be demonstrated that the use of. a different base would result in a
more equitable allocation of the costs, or that a more readily available base
would not increase the costs charged to sponsored awards. The results of
12
e or all activities; DEPARTMENT OF HOUSING AND
including citizen comments,complaint (vi)Reducing or terminating the URBAN DEVELOPMENT
determinations,and litigation.Reviews remaining grant of a subrecipient and
to determine compliance with specific reallocating those funds to other 24 CFR Parts 91,582,and 583
requirements of thispart will be subrecipients;and
q (vii)Making matching contributions (Docket No.FR-5333-F-02]
conducted as necessary,with or without before or as draws are made from the
prior notice to the recipient. RIN 2506-AC26
(2)If HUD determines preliminarily recipient's ESG grant.
that the recipient or one of its (2)HUD may change the method of Homeless Emergency Assistance and
subrecipients has not complied with an Payment to a reimbursement basis. Rapid Transition to Housing: Defining
ESG program requirement,HUD will y3)HUD may suspend payments to' Homeless
the extent HUD deems it necessary to
give the recipient notice of this preclude the further expenditure of AGENCY:Office of the Assistant
determination and an opportunity to funds for affected activities. Secretary for Community Planning and
demonstrate,within the time prescribed (4)HUD may remove the recipient . Development,HUD.
by HUD and on the basis of substantial from participation in reallocations of ACTION:Final rule.
facts and data,that the recipient has funds under subpart D of this part.
complied with Emergency Solutions (5)HUD may deny matching credit for SUMMARY:The Homeless Emergency
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
(3) Royalties paid under an agreement entered into after an award is
made to a non-profit organization.
c. In any case involving a patent or copyright formerly owned by the non-
profit organization, the amount of royalty allowed should not exceed the cost
which would have been allowed had the non-profit organization retained title
thereto.
45. Selling and marketing. Costs of selling and marketing any products or
services of the non-profit organization are unallowable (unless allowed under
Attachment B, paragraph 1. as allowable public relations cost. However, these
costs are allowable as direct costs, with prior approval by awarding agencies,
when they are necessary for the performance of Federal programs.
46. Specialized service facilities.
a. The costs of services provided by highly complex or specialized
facilities operated by the non-profit organization, such as computers, wind
tunnels, and reactors are allowable, provided the charges for the services meet
the conditions of either 46 b. or c. and, in addition, take into account any
items of income or Federal financing that qualify as applicable credits under
Attachment A, subparagraph A.5. of this Circular.
b. The costs of such services, when material, must be charged directly to
applicable awards based on actual usage of the services on the basis of a
schedule of rates or established methodology that (i) does not discriminate
against federally-supported activities of the non-profit organization, including
usage by the non-profit organization for internal purposes, and (ii) is designed
to recover only the aggregate costs of the services. The costs of each service
shall consist normally of both its direct costs and its allocable share of all
indirect costs. Rates shall be adjusted at least biennially, and shall take
into consideration over/under applied costs of the previous period(s) .
c. Where the costs incurred for a service are not material, they may be
allocated as indirect costs.
d. Under some extraordinary circumstances, where it is in the best
interest of the Federal Government and the institution to establish alternative
costing arrangements, such arrangements may be worked out with the cognizant
Federal agency.
47. Taxes.
a. In general, taxes which the organization is required to pay and which
are paid or accrued in accordance with GAAP, and payments made to local
governments in lieu of taxes which are commensurate with the local government
services received are allowable, except for (i) taxes from which exemptions are
available to the organization directly or which are available to the
organization based on an exemption afforded the Federal Government and in the
latter case when the awarding agency makes available the necessary exemption
certificates, (ii) special assessments on land which represent capital
improvements, and (iii) Federal income taxes.
b. Any refund of taxes, and any payment to the organization of interest
thereon, which Were allowed as award costs, will be credited either as a cost
reduction or cash refund, as appropriate, to the Federal Government.
48
y nature, including legislative lobbying costs. When
conditions (1) and (2) are met, organizations are not required to establish
records to support the allowabliliy of claimed costs in addition to records
40
n from
an unrelated ("arm's length") third party.
38
appropriate
to the particular cost being prorated.
b. This method is acceptable, provided each joint cost is prorated
using a base which accurately measures the benefits provided to each award or
14
The distribution shall be made in accordance with the bases described herein
unless it can be demonstrated that the use of. a different base would result in a
more equitable allocation of the costs, or that a more readily available base
would not increase the costs charged to sponsored awards. The results of
12
e or all activities; DEPARTMENT OF HOUSING AND
including citizen comments,complaint (vi)Reducing or terminating the URBAN DEVELOPMENT
determinations,and litigation.Reviews remaining grant of a subrecipient and
to determine compliance with specific reallocating those funds to other 24 CFR Parts 91,582,and 583
requirements of thispart will be subrecipients;and
q (vii)Making matching contributions (Docket No.FR-5333-F-02]
conducted as necessary,with or without before or as draws are made from the
prior notice to the recipient. RIN 2506-AC26
(2)If HUD determines preliminarily recipient's ESG grant.
that the recipient or one of its (2)HUD may change the method of Homeless Emergency Assistance and
subrecipients has not complied with an Payment to a reimbursement basis. Rapid Transition to Housing: Defining
ESG program requirement,HUD will y3)HUD may suspend payments to' Homeless
the extent HUD deems it necessary to
give the recipient notice of this preclude the further expenditure of AGENCY:Office of the Assistant
determination and an opportunity to funds for affected activities. Secretary for Community Planning and
demonstrate,within the time prescribed (4)HUD may remove the recipient . Development,HUD.
by HUD and on the basis of substantial from participation in reallocations of ACTION:Final rule.
facts and data,that the recipient has funds under subpart D of this part.
complied with Emergency Solutions (5)HUD may deny matching credit for SUMMARY:The Homeless Emergency
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
48. Termination costs applicable to sponsored agreements. •
Termination of awards generally gives rise' to the incurrence of costs, or the
need for special treatment of costs, which would not have arisen had the Federal
award not been terminated. Cost principles covering these items are set forth
below. They are to be used in conjunction with the other provisions of this
Circular in termination situations.
a. The cost of items reasonably usable on the non-profit organization's
other work ,shall_not be allowable unless the non-profit organization submits
evidence that it would not retain such items at cost without sustaining a loss.
In deciding whether such items are reasonably usable on other work of the non-
profit organization, the awarding agency should consider the non-profit
organization's plans and orders for current and scheduled activity.
Contemporaneous purchases of common items by the non-profit organization shall
• be regarded as evidence that such items are reasonably usable on the non-profit
organization's other work. Any acceptance of common items as allocable to the
terminated portion of the Federal award shall be limited to the extent that the
quantities of such items on hand, in transit, and on order are in excess of the
reasonable quantitative requirements of other work.
b. If in a particular case, despite all reasonable efforts by the non-
profit organization, certain costs cannot be discontinued immediately after the
effective date of termination, such costs are generally allowable within the
limitations set forth in this Circular, except that any such costs continuing
after termination due to the negligent or willful failure of the non-profit
organization to discontinue such costs shall be unallowable.
c. Loss of useful value of special tooling, machinery, and is generally
allowable if:
(1) Such special tooling, special machinery, or equipment is not
reasonably capable of use in the other work of the non-profit organization,
(2) The interest of the Federal Government is protected by transfer
of title or by other means deemed appropriate by the awarding agency, and
(3) The loss of useful value for any one terminated Federal award is
limited to that portion of the acquisition cost which bears the same ratio to
the total acquisition cost as the terminated portion of the Federal award bears
to the entire terminated Federal award and other. Federal awards for which the
special tooling, special machinery, or equipment was acquired.
d. Rental costs under Unexpired leases are generally allowable where
clearly shown to have been reasonably necessary for the performance of the
terminated Federal award less the residual value of such leases, if:
(1) the amount of such rental claimed does not exceed the reasonable
use value of the property leased for the period of the Federal award and such
further period as may be reasonable, and
(2) the non-profit organization makes all reasonable efforts to
terminate, assign, settle, or otherwise reduce the cost of such lease. There
also may be included the cost of alterations of such leased property, provided
49
slative lobbying costs. When
conditions (1) and (2) are met, organizations are not required to establish
records to support the allowabliliy of claimed costs in addition to records
40
n from
an unrelated ("arm's length") third party.
38
appropriate
to the particular cost being prorated.
b. This method is acceptable, provided each joint cost is prorated
using a base which accurately measures the benefits provided to each award or
14
The distribution shall be made in accordance with the bases described herein
unless it can be demonstrated that the use of. a different base would result in a
more equitable allocation of the costs, or that a more readily available base
would not increase the costs charged to sponsored awards. The results of
12
e or all activities; DEPARTMENT OF HOUSING AND
including citizen comments,complaint (vi)Reducing or terminating the URBAN DEVELOPMENT
determinations,and litigation.Reviews remaining grant of a subrecipient and
to determine compliance with specific reallocating those funds to other 24 CFR Parts 91,582,and 583
requirements of thispart will be subrecipients;and
q (vii)Making matching contributions (Docket No.FR-5333-F-02]
conducted as necessary,with or without before or as draws are made from the
prior notice to the recipient. RIN 2506-AC26
(2)If HUD determines preliminarily recipient's ESG grant.
that the recipient or one of its (2)HUD may change the method of Homeless Emergency Assistance and
subrecipients has not complied with an Payment to a reimbursement basis. Rapid Transition to Housing: Defining
ESG program requirement,HUD will y3)HUD may suspend payments to' Homeless
the extent HUD deems it necessary to
give the recipient notice of this preclude the further expenditure of AGENCY:Office of the Assistant
determination and an opportunity to funds for affected activities. Secretary for Community Planning and
demonstrate,within the time prescribed (4)HUD may remove the recipient . Development,HUD.
by HUD and on the basis of substantial from participation in reallocations of ACTION:Final rule.
facts and data,that the recipient has funds under subpart D of this part.
complied with Emergency Solutions (5)HUD may deny matching credit for SUMMARY:The Homeless Emergency
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
such alterations were necessary for the performance of the Federal award, and of
reasonable restoration required by the provisions of the lease.
e. Settlement expenses including the following are generally allowable:
(1) Accounting, legal, clerical, and similar costs reasonably
necessary for:
(a) The preparation and presentation to the awarding agency of
settlement claims and supporting data with respect to the terminated portion of
the Federal award, unless the termination is for default (see Subpart _.61 of
Circular A-110) ; and
(b) The termination and settlement of subawards.
(2) Reasonable costs for the storage, transportation, protection,
and disposition of property provided by the Federal Government or acquired or
produced for the Federal award, except when grantees or contractors are
reimbursed for disposals at a predetermined amount in accordance with Subparts
.32 through .37 of Circular A-110.
(3) Indirect costs related to salaries and wages incurred as
settlement expenses in subparagraphs (1) and (2) . Normally, such indirect costs
shall be limited to fringe benefits, occupancy cost, and immediate supervision.
f. Claims under sub awards, including the allocable portion of claims
which are common to the Federal award, and to other work of the non-profit
organization are generally allowable.
An appropriate share of the non-profit organization's indirect expense may be
allocated to the amount of settlements with subcontractors and/or subgrantees,
provided that the amount allocated is otherwise consistent with the basic
guidelines contained in Attachment A. The indirect expense so allocated shall
exclude the same and similar costs claimed directly or indirectly as settlement
expenses.
49. Training costs.
a. Costs of preparation and maintenance of a program of instruction
including but not limited to on-the-job, classroom, and apprenticeship training,
designed to increase the vocational effectiveness of employees, including
training materials, textbooks, salaries or wages of trainees (excluding overtime
compensation which might arise therefrom) , and (i) salaries of the director of
training and staff when the training program is conducted by the organization;
or (ii) tuition and fees when the training is in an institution not operated by
the organization, are allowable.
b. Costs of part-time education, at an undergraduate or post-graduate
college level, including that provided at the organization's own facilities, are
allowable only when the course or degree pursued is relative to the field in
which the employee is now working or may reasonably be expected to work, and are
limited to:
(1) Training materials.
(2) Textbooks.
50
the amount of such rental claimed does not exceed the reasonable
use value of the property leased for the period of the Federal award and such
further period as may be reasonable, and
(2) the non-profit organization makes all reasonable efforts to
terminate, assign, settle, or otherwise reduce the cost of such lease. There
also may be included the cost of alterations of such leased property, provided
49
slative lobbying costs. When
conditions (1) and (2) are met, organizations are not required to establish
records to support the allowabliliy of claimed costs in addition to records
40
n from
an unrelated ("arm's length") third party.
38
appropriate
to the particular cost being prorated.
b. This method is acceptable, provided each joint cost is prorated
using a base which accurately measures the benefits provided to each award or
14
The distribution shall be made in accordance with the bases described herein
unless it can be demonstrated that the use of. a different base would result in a
more equitable allocation of the costs, or that a more readily available base
would not increase the costs charged to sponsored awards. The results of
12
e or all activities; DEPARTMENT OF HOUSING AND
including citizen comments,complaint (vi)Reducing or terminating the URBAN DEVELOPMENT
determinations,and litigation.Reviews remaining grant of a subrecipient and
to determine compliance with specific reallocating those funds to other 24 CFR Parts 91,582,and 583
requirements of thispart will be subrecipients;and
q (vii)Making matching contributions (Docket No.FR-5333-F-02]
conducted as necessary,with or without before or as draws are made from the
prior notice to the recipient. RIN 2506-AC26
(2)If HUD determines preliminarily recipient's ESG grant.
that the recipient or one of its (2)HUD may change the method of Homeless Emergency Assistance and
subrecipients has not complied with an Payment to a reimbursement basis. Rapid Transition to Housing: Defining
ESG program requirement,HUD will y3)HUD may suspend payments to' Homeless
the extent HUD deems it necessary to
give the recipient notice of this preclude the further expenditure of AGENCY:Office of the Assistant
determination and an opportunity to funds for affected activities. Secretary for Community Planning and
demonstrate,within the time prescribed (4)HUD may remove the recipient . Development,HUD.
by HUD and on the basis of substantial from participation in reallocations of ACTION:Final rule.
facts and data,that the recipient has funds under subpart D of this part.
complied with Emergency Solutions (5)HUD may deny matching credit for SUMMARY:The Homeless Emergency
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
(3) Fees charges by the educational institution.
(4) Tuition charged by the educational institution or, in lieu of
tuition, instructors' salaries and the related share of indirect costs of the
educational institution to the extent that the sum thereof is not in excess of
the tuition which would have been paid to the participating educational
institution.
(5) Salaries and related costs of instructors who are employees of
the organization.
(6) Straight-time compensation of each employee for time spent
attending classes during working hours not in excess of 156 hours per year and
only to the extent that circumstances do not permit the operation of classes or
attendance at classes after regular working hours; otherwise, such compensation
is unallowable.
c. Costs of tuition, fees, training materials, and textbooks (but not
subsistence, salary, or any other emoluments) in connection with full-time
education, including that provided at the organization's own facilities, at a
post-graduate (but not undergraduate) college level, are allowable only when the
course or degree pursued is related to the field in which the employee is now
working or may reasonably be expected to work, and only where the costs receive
the prior approval of the awarding agency. Such costs are limited to the costs
attributable to a total period not to exceed one school year for each employee
so trained. In unusual cases the period may be extended.
d. Costs of attendance of up to 16 weeks per employee per year at
specialized programs specifically designed to enhance the effectiveness of
executives or managers or to prepare employees for such positions are allowable.
Such costs include enrollment fees, training materials, textbooks and related
charges, employees' salaries, subsistence, and travel. Costs allowable under
this paragraph do not include those for courses that are part of a degree-
oriented curriculum, which are allowable only to the extent set forth in
subparagraphs b and c.
e. Maintenance expense, and normal depreciation or fair rental, on
facilities owned or leased by the organization for training purposes are
allowable to the extent set forth in paragraphs 11, 27, and 50.
f. Contributions or donations to educational or training institutions,
including the donation of facilities or other properties, and scholarships or
fellowships, are unallowable.
g. Training and education costs in excess of those otherwise allowable
under subparagraphs b and c may be allowed with prior approval of the awarding
agency. To be considered for approval, the organization must demonstrate that
such costs are consistently incurred pursuant to an established training and
education program, and that the course or degree pursued is relative to the
field in which the employee is now working or may reasonably be expected to
work.
50. Transportation costs. Transportation costs include freight, express,
cartage, and postage charges relating either to goods purchased, in process, or
delivered. These costs are allowable. When such costs can readily be identified
with the items involved, they may be directly charged as transportation costs or
51.
s are not required to establish
records to support the allowabliliy of claimed costs in addition to records
40
n from
an unrelated ("arm's length") third party.
38
appropriate
to the particular cost being prorated.
b. This method is acceptable, provided each joint cost is prorated
using a base which accurately measures the benefits provided to each award or
14
The distribution shall be made in accordance with the bases described herein
unless it can be demonstrated that the use of. a different base would result in a
more equitable allocation of the costs, or that a more readily available base
would not increase the costs charged to sponsored awards. The results of
12
e or all activities; DEPARTMENT OF HOUSING AND
including citizen comments,complaint (vi)Reducing or terminating the URBAN DEVELOPMENT
determinations,and litigation.Reviews remaining grant of a subrecipient and
to determine compliance with specific reallocating those funds to other 24 CFR Parts 91,582,and 583
requirements of thispart will be subrecipients;and
q (vii)Making matching contributions (Docket No.FR-5333-F-02]
conducted as necessary,with or without before or as draws are made from the
prior notice to the recipient. RIN 2506-AC26
(2)If HUD determines preliminarily recipient's ESG grant.
that the recipient or one of its (2)HUD may change the method of Homeless Emergency Assistance and
subrecipients has not complied with an Payment to a reimbursement basis. Rapid Transition to Housing: Defining
ESG program requirement,HUD will y3)HUD may suspend payments to' Homeless
the extent HUD deems it necessary to
give the recipient notice of this preclude the further expenditure of AGENCY:Office of the Assistant
determination and an opportunity to funds for affected activities. Secretary for Community Planning and
demonstrate,within the time prescribed (4)HUD may remove the recipient . Development,HUD.
by HUD and on the basis of substantial from participation in reallocations of ACTION:Final rule.
facts and data,that the recipient has funds under subpart D of this part.
complied with Emergency Solutions (5)HUD may deny matching credit for SUMMARY:The Homeless Emergency
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
added to the cost of such items (see paragraph 28) . Where identification with
the materials received cannot readily be made, transportation costs may be
charged to the appropriate indirect cost accounts if the organization follows a
consistent, equitable procedure in this respect.
51. Travel costs.
a. General. Travel costs are the expenses for transportation, lodging,
subsistence, and related items incurred by employees who are in travel status on
official business of the non-profit organization. Such costs may be charged on
an actual cost basis, on a per diem or mileage basis in lieu of actual costs
incurred, or on a combination of the two, provided the method used is applied to
an entire trip and not to selected days of the trip, and results in charges
consistent with those normally allowed in like circumstances in the non-profit
organization' s non-federally-sponsored activities.
b. Lodging and subsistence. Costs incurred by employees and officers for
travel, including costs of lodging, other subsistence, and incidental expenses,
shall be considered reasonable and allowable only to the extent such costs do
not exceed charges normally allowed by the non-profit organization in its
regular operations as the result of the non-profit organization's written travel
policy. In the absence of an acceptable, written non-profit organization policy
regarding travel costs, the rates and amounts established under subchapter I of
Chapter 57, Title 5, United States Code ("Travel and Subsistence Expenses;
Mileage Allowances") , or by the Administrator of General Services, or by the
President (or his or her designee) pursuant to any provisions of such subchapter
shall apply to travel under Federal awards (48 CFR 31.205-46(a) ) .
c. Commercial air travel.
(1) Airfare costs in excess of the customary standard commercial
airfare (coach or equivalent) , Federal Government contract airfare (where
authorized and available) , or the lowest commercial discount airfare are
unallowable except when such accommodations would: (a) require circuitous
routing; (b) require travel during unreasonable hours; (c) excessively prolong
travel; (d) result in additional costs that would offset the transportation
savings; or (e) offer accommodations not reasonably adequate for the traveler's
medical needs. The non-profit organization must justify and document these
conditions on a case-by-case basis in order for the use of first-class airfare
to be allowable in such cases..
(2) Unless a pattern of avoidance is detected, the Federal
'Government will generally not question a non-profit organization's
determinations that customary standard airfare or other discount airfare is
unavailable for specific trips if the non-profit organization can demonstrate
either of the following: (a) that such airfare was not available in the
specific case; or (b) that it is the non-profit organization's overall practice
to make routine use of such airfare.
d. Air travel by other than commercial carrier. Costs of travel by non-
profit organization-owned, -leased, or -chartered aircraft include the cost of
lease, charter, operation (including personnel costs) , maintenance,
depreciation, insurance, and other related costs. The portion of such costs
that exceeds the cost of allowable commercial air travel, as provided for in
subparagraph] c. , is unallowable.
52
J
riate
to the particular cost being prorated.
b. This method is acceptable, provided each joint cost is prorated
using a base which accurately measures the benefits provided to each award or
14
The distribution shall be made in accordance with the bases described herein
unless it can be demonstrated that the use of. a different base would result in a
more equitable allocation of the costs, or that a more readily available base
would not increase the costs charged to sponsored awards. The results of
12
e or all activities; DEPARTMENT OF HOUSING AND
including citizen comments,complaint (vi)Reducing or terminating the URBAN DEVELOPMENT
determinations,and litigation.Reviews remaining grant of a subrecipient and
to determine compliance with specific reallocating those funds to other 24 CFR Parts 91,582,and 583
requirements of thispart will be subrecipients;and
q (vii)Making matching contributions (Docket No.FR-5333-F-02]
conducted as necessary,with or without before or as draws are made from the
prior notice to the recipient. RIN 2506-AC26
(2)If HUD determines preliminarily recipient's ESG grant.
that the recipient or one of its (2)HUD may change the method of Homeless Emergency Assistance and
subrecipients has not complied with an Payment to a reimbursement basis. Rapid Transition to Housing: Defining
ESG program requirement,HUD will y3)HUD may suspend payments to' Homeless
the extent HUD deems it necessary to
give the recipient notice of this preclude the further expenditure of AGENCY:Office of the Assistant
determination and an opportunity to funds for affected activities. Secretary for Community Planning and
demonstrate,within the time prescribed (4)HUD may remove the recipient . Development,HUD.
by HUD and on the basis of substantial from participation in reallocations of ACTION:Final rule.
facts and data,that the recipient has funds under subpart D of this part.
complied with Emergency Solutions (5)HUD may deny matching credit for SUMMARY:The Homeless Emergency
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
e. Foreign travel. Direct charges for foreign travel costs are allowable
only when the travel has received prior approval of the awarding agency. Each
separate foreign trip must receive such approval. For purposes of this
provision, "foreign travel" includes any travel outside Canada, Mexico, the
United States, and any United States territories and possessions. However, the
term "foreign travel" for a non-profit organization located in a foreign country
means travel outside that country. •
52. Trustees. Travel and subsistence costs of trustees (or directors) are
allowable. The costs are subject to restrictions regarding lodging, subsistence
and air travel costs provided in paragraph 51.
53
0-res
aermaz
By ci1member
Adopted S. 1. 12012 •
C• Clerk
Approved... .
Mayor
treets
ATTACHMENT C
Circular No. A-122
NON-PROFIT ORGANIZATIONS NOT SUBJECT TO THIS CIRCULAR
Advance Technology Institute (ATI) , Charleston, South Carolina
Aerospace Corporation, El Segundo, California
American Institutes of Research (AIR) , Washington D.C.
Argonne National Laboratory, Chicago, Illinois
Atomic Casualty Commission, Washington, D.C.
Battelle Memorial Institute, Headquartered in Columbus, Ohio
Brookhaven National Laboratory, Upton, New York
Charles Stark Draper Laboratory, Incorporated, Cambridge, Massachusetts
CNA Corporation (CNAC) , Alexandria, Virginia
Environmental Institute of Michigan, Ann Arbor, Michigan
Georgia Institute of Technology/Georgia Tech Applied Research Corporation/
Georgia Tech Research Institute, Atlanta, Georgia
Hanford Environmental Health Foundation, Richland, Washington
IIT Research Institute, Chicago, Illinois
Institute of Gas Technology, Chicago, Illinois
Institute for Defense Analysis, Alexandria, Virginia
LMI, McLean, Virginia
Mitre Corporation, Bedford, Massachusetts
Mitretek Systems, Inc. , Falls Church, Virginia
National Radiological Astronomy Observatory, Green Bank, West Virginia
National Renewable Energy Laboratory, Golden, Colorado
Oak Ridge Associated Universities, Oak Ridge, Tennessee
Rand Corporation, Santa Monica, California
Research Triangle Institute, Research Triangle Park, North Carolina
Riverside Research Institute, New York, New York
South Carolina Research Authority (SCRA) , Charleston, South Carolina
54
vices, or by the
President (or his or her designee) pursuant to any provisions of such subchapter
shall apply to travel under Federal awards (48 CFR 31.205-46(a) ) .
c. Commercial air travel.
(1) Airfare costs in excess of the customary standard commercial
airfare (coach or equivalent) , Federal Government contract airfare (where
authorized and available) , or the lowest commercial discount airfare are
unallowable except when such accommodations would: (a) require circuitous
routing; (b) require travel during unreasonable hours; (c) excessively prolong
travel; (d) result in additional costs that would offset the transportation
savings; or (e) offer accommodations not reasonably adequate for the traveler's
medical needs. The non-profit organization must justify and document these
conditions on a case-by-case basis in order for the use of first-class airfare
to be allowable in such cases..
(2) Unless a pattern of avoidance is detected, the Federal
'Government will generally not question a non-profit organization's
determinations that customary standard airfare or other discount airfare is
unavailable for specific trips if the non-profit organization can demonstrate
either of the following: (a) that such airfare was not available in the
specific case; or (b) that it is the non-profit organization's overall practice
to make routine use of such airfare.
d. Air travel by other than commercial carrier. Costs of travel by non-
profit organization-owned, -leased, or -chartered aircraft include the cost of
lease, charter, operation (including personnel costs) , maintenance,
depreciation, insurance, and other related costs. The portion of such costs
that exceeds the cost of allowable commercial air travel, as provided for in
subparagraph] c. , is unallowable.
52
J
riate
to the particular cost being prorated.
b. This method is acceptable, provided each joint cost is prorated
using a base which accurately measures the benefits provided to each award or
14
The distribution shall be made in accordance with the bases described herein
unless it can be demonstrated that the use of. a different base would result in a
more equitable allocation of the costs, or that a more readily available base
would not increase the costs charged to sponsored awards. The results of
12
e or all activities; DEPARTMENT OF HOUSING AND
including citizen comments,complaint (vi)Reducing or terminating the URBAN DEVELOPMENT
determinations,and litigation.Reviews remaining grant of a subrecipient and
to determine compliance with specific reallocating those funds to other 24 CFR Parts 91,582,and 583
requirements of thispart will be subrecipients;and
q (vii)Making matching contributions (Docket No.FR-5333-F-02]
conducted as necessary,with or without before or as draws are made from the
prior notice to the recipient. RIN 2506-AC26
(2)If HUD determines preliminarily recipient's ESG grant.
that the recipient or one of its (2)HUD may change the method of Homeless Emergency Assistance and
subrecipients has not complied with an Payment to a reimbursement basis. Rapid Transition to Housing: Defining
ESG program requirement,HUD will y3)HUD may suspend payments to' Homeless
the extent HUD deems it necessary to
give the recipient notice of this preclude the further expenditure of AGENCY:Office of the Assistant
determination and an opportunity to funds for affected activities. Secretary for Community Planning and
demonstrate,within the time prescribed (4)HUD may remove the recipient . Development,HUD.
by HUD and on the basis of substantial from participation in reallocations of ACTION:Final rule.
facts and data,that the recipient has funds under subpart D of this part.
complied with Emergency Solutions (5)HUD may deny matching credit for SUMMARY:The Homeless Emergency
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
Southern Research Institute, Birmingham, Alabama
Southwest Research Institute, San Antonio, Texas
SRI International, Menlo Park, California
Syracuse Research Corporation, Syracuse, New York
Universities Research Association, Incorporated (National Acceleration Lab) ,
Argonne, Illinois
Urban Institute, Washington D.C.
Non-profit insurance companies, such as Blue Cross and Blue Shield Organizations
Other non-profit organizations as negotiated with awarding agencies
55
ntry. •
52. Trustees. Travel and subsistence costs of trustees (or directors) are
allowable. The costs are subject to restrictions regarding lodging, subsistence
and air travel costs provided in paragraph 51.
53
0-res
aermaz
By ci1member
Adopted S. 1. 12012 •
C• Clerk
Approved... .
Mayor
treets
•
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4bout OMBlog j The Budget Managemearl I R.egulalion&Informal ion Policy i Legislative Information i Join OM B I Contact OMB
""I CIRCULAR A-h o REVISED 11/19/93 As Further Amended
Leadership Bios / 9/93
OMB Organization Chart 9/30/99
Open Government Plan TO THE HEADS OF EXECUTIVE DEPARTMENTS AND ESTABLISHMENTS
OMB News Releases
RSS Feeds SUBJECT: Uniform Administrative Requirements for Grants and Agreements With Institutions of Higher
Education,Hospitals,and Other Non-Profit Organizations
Intellectual Property
Agency Info 1.Purpose.This Circular sets forth standards for obtaining consistency and uniformity among Federal agencies in the
Bulletins administration of grants to and agreements with institutions of higher education,hospitals.and other non-profit
Circulars organizations.
Budget
State and Local 2.Authority.Circular A-110 is issued under the authority of 31 U.S.C.503(the Chief Financial Officers Act),31
Governments U.S.C.1111,41 U.S.C.405(the Office of Federal Procurement Policy Act),Reorganization Plan No.2 of 1970.and
Educational and Non- E.O.11541("Prescribing the Duties of the Office of Management and Budget and the Domestic Policy Council in the
Profit Institutions Executive Office of the President").
Federal Procurement.
Federal Financial 3.Policy.Except as provided herein,the standards set forth in this Circular are applicable to all Federal agencies.If
Management any statute specifically prescribes policies or specific requirements that differ from the standards provided herein,the
Federal Information provisions of the statute shall govern.
Resources/Data
Collection • The provisions of the sections of this Circular shall be applied by Federal agencies to recipients.Recipients shall apply
Other Special Purpose the provisions of this Circular to subrecipients performing substantive work under grants and agreements that are
Memoranda passed through or awarded by the primary recipient.if such subrecipients are organizations described in paragraph 1.
Privacy Guidance
Reports This Circular does not apply to grants,contracts,or other agreements between the Federal Government and units of
State or local governments covered by OMB Circular A-102,"Grants and Cooperative Agreements with State and
Federal Register Local Governments,"and the Federal agencies'grants management common rule which standardized and codified the
FOIA administrative requirements Federal agencies impose on State and local grantees.In addition,subawards and
No FEAR contracts to State or local governments are not covered by this Circular.However,this Circular applies to subawards
OMB Locator made by State and local governments to organizations covered by this Circular.Federal agencies may apply the
provisions of this Circular to commercial organizations,foreign governments,organizations under the jurisdiction of
foreign governments,and international organizations.
4.Definitions.Definitions of key terms used in this Circular are contained in Section_.2 in the Attachment.
5.Required Action.The specific requirements and responsibilities of Federal agencies and institutions of higher
education,hospitals,and other non-profit organizations are set forth in this Circular.Federal agencies responsible for
awarding and administering grants to and other agreements with organizations described in paragraph 1 shall adopt
the language in the Circular unless different provisions are required by Federal statute or are approved by OMB.
6.OMB Responsibilities.OMB will review agency regulations and implementation of this Circular,and will provide
interpretations of policy requirements and assistance to insure effective and efficient implementation.Any exceptions
will be subject to approval by OMB,as indicated in Section .4 in the Attachment.Exceptions will only be made in
particular cases where adequate justification is presented.
7.Information Contact.Further information concerning this Circular may be obtained by contacting the Office of
Federal Financial Management,Office,of Management and Budget,Washington,DC 20503,telephone(202)395-
3993.
8.Termination Review Date.This Circular will have a policy review three years from date of issuance.
9.Effective Date.The standards set forth in this Circular which affect Federal agencies will be effective 30 days after
publication of the final revision in the Federal Register.Those standards which Federal agencies impose on grantees
http://www.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
nsition to Housing: Defining
ESG program requirement,HUD will y3)HUD may suspend payments to' Homeless
the extent HUD deems it necessary to
give the recipient notice of this preclude the further expenditure of AGENCY:Office of the Assistant
determination and an opportunity to funds for affected activities. Secretary for Community Planning and
demonstrate,within the time prescribed (4)HUD may remove the recipient . Development,HUD.
by HUD and on the basis of substantial from participation in reallocations of ACTION:Final rule.
facts and data,that the recipient has funds under subpart D of this part.
complied with Emergency Solutions (5)HUD may deny matching credit for SUMMARY:The Homeless Emergency
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
r n
p
will be adopted by agencies in codified regulations within six months after publication in the Federal Register.Earlier
implementation is encouraged.
Attachment
A
Grants and Agreements with Institutions of Higher Education,
Hospitals,and Other Non-Profit Organizations
SUBPART A-GENERAL
Sec.
.1 Purpose.
.2 Definitions.
3.Effect on other issuances.
.4 Deviations.
Suhawards.
SUBPART B-PRE-AWARD REQUIREMENTS
_.10 Purpose.
.11 Pre-award policies.
•
_.12 Forms for applying for Federal assistance.
.13 Debarment and suspension.
_.14 Special award conditions.
_.15 Metric system of measurement.
.16 Resource Conservation and Recovery Act.
_.17 Certifications and representations.
SUBPART C-POST-AWARD REQUIREMENTS
Financial and Program Management
_.20 Purpose of financial and program management.
_.21 Standards for financial management systems.
_.22 Payment.
23 Cost sharing or matching.
_.24 Program income.
.25 Revision of budget and program plans.
.26 Non-Federal audits.
•
.27 Allowable costs.
28 Period of availability of funds.
29 Conditional exemptions.
Property Standards
_.30 Purpose of properly standards. •
.31 Insurance coverage.
http://wwvv.whitehouse.gov/omb/eirculars_al 10/ 7/16/2012
Officers Act),31
Governments U.S.C.1111,41 U.S.C.405(the Office of Federal Procurement Policy Act),Reorganization Plan No.2 of 1970.and
Educational and Non- E.O.11541("Prescribing the Duties of the Office of Management and Budget and the Domestic Policy Council in the
Profit Institutions Executive Office of the President").
Federal Procurement.
Federal Financial 3.Policy.Except as provided herein,the standards set forth in this Circular are applicable to all Federal agencies.If
Management any statute specifically prescribes policies or specific requirements that differ from the standards provided herein,the
Federal Information provisions of the statute shall govern.
Resources/Data
Collection • The provisions of the sections of this Circular shall be applied by Federal agencies to recipients.Recipients shall apply
Other Special Purpose the provisions of this Circular to subrecipients performing substantive work under grants and agreements that are
Memoranda passed through or awarded by the primary recipient.if such subrecipients are organizations described in paragraph 1.
Privacy Guidance
Reports This Circular does not apply to grants,contracts,or other agreements between the Federal Government and units of
State or local governments covered by OMB Circular A-102,"Grants and Cooperative Agreements with State and
Federal Register Local Governments,"and the Federal agencies'grants management common rule which standardized and codified the
FOIA administrative requirements Federal agencies impose on State and local grantees.In addition,subawards and
No FEAR contracts to State or local governments are not covered by this Circular.However,this Circular applies to subawards
OMB Locator made by State and local governments to organizations covered by this Circular.Federal agencies may apply the
provisions of this Circular to commercial organizations,foreign governments,organizations under the jurisdiction of
foreign governments,and international organizations.
4.Definitions.Definitions of key terms used in this Circular are contained in Section_.2 in the Attachment.
5.Required Action.The specific requirements and responsibilities of Federal agencies and institutions of higher
education,hospitals,and other non-profit organizations are set forth in this Circular.Federal agencies responsible for
awarding and administering grants to and other agreements with organizations described in paragraph 1 shall adopt
the language in the Circular unless different provisions are required by Federal statute or are approved by OMB.
6.OMB Responsibilities.OMB will review agency regulations and implementation of this Circular,and will provide
interpretations of policy requirements and assistance to insure effective and efficient implementation.Any exceptions
will be subject to approval by OMB,as indicated in Section .4 in the Attachment.Exceptions will only be made in
particular cases where adequate justification is presented.
7.Information Contact.Further information concerning this Circular may be obtained by contacting the Office of
Federal Financial Management,Office,of Management and Budget,Washington,DC 20503,telephone(202)395-
3993.
8.Termination Review Date.This Circular will have a policy review three years from date of issuance.
9.Effective Date.The standards set forth in this Circular which affect Federal agencies will be effective 30 days after
publication of the final revision in the Federal Register.Those standards which Federal agencies impose on grantees
http://www.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
nsition to Housing: Defining
ESG program requirement,HUD will y3)HUD may suspend payments to' Homeless
the extent HUD deems it necessary to
give the recipient notice of this preclude the further expenditure of AGENCY:Office of the Assistant
determination and an opportunity to funds for affected activities. Secretary for Community Planning and
demonstrate,within the time prescribed (4)HUD may remove the recipient . Development,HUD.
by HUD and on the basis of substantial from participation in reallocations of ACTION:Final rule.
facts and data,that the recipient has funds under subpart D of this part.
complied with Emergency Solutions (5)HUD may deny matching credit for SUMMARY:The Homeless Emergency
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
.32 Real property.
.33 Federally-owned and exempt property.
_.34 Equipment.
_.35 Supplies and other expendable property.
_.36 Intangible properly.
.37 Property trust relationship. •
•
Procurement Standards
.40 Purpose of procurement standards.
_.41 Recipient responsibilities.
.42 Codes of conduct.
_.43 Competition.
•
_.44 Procurement procedures.
_ .45 Cost and price analysis. •
•
.46 Procurement records.
.47 Contract administration.
_ .48 Contract provisions.
Reports and Records
_.50 Purpose of reports and records.
.51 fvlonitoring and reporting program performance.
_.52 Financial reporting. .
.53 Retention and access requirements for records.
•
Termination and Enforcement
60 Purpose of termination and enforcement.
.61 Termination.
.62 Enforcement.
SUBPART D-AFTER-THE-AWARD REQUIREMENTS •
.70 Pur'ose. •
_ P
.71 Closeout procedures.
.72 Subsequent adjustments and continuing responsibilities.
.73 Collection of amounts due.
APPENDIX A-CONTRACT PROVISIONS
SUBPART A-General
_.1 Purpose.This Circular establishes uniform administrative requirements for Federal grants and agreements
awarded to institutions of higher education,hospitals.and other.non-profit organizations.Federal awarding agencies
shall not impose additional or inconsistent requirements,except as provided in Sections .4,and .14 or unless
specifically required by Federal statute or executive order.Non-profit organizations that implement Federal programs
for the States are also subject to State requirements.
.2 Definitions.
http://www.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
of the President").
Federal Procurement.
Federal Financial 3.Policy.Except as provided herein,the standards set forth in this Circular are applicable to all Federal agencies.If
Management any statute specifically prescribes policies or specific requirements that differ from the standards provided herein,the
Federal Information provisions of the statute shall govern.
Resources/Data
Collection • The provisions of the sections of this Circular shall be applied by Federal agencies to recipients.Recipients shall apply
Other Special Purpose the provisions of this Circular to subrecipients performing substantive work under grants and agreements that are
Memoranda passed through or awarded by the primary recipient.if such subrecipients are organizations described in paragraph 1.
Privacy Guidance
Reports This Circular does not apply to grants,contracts,or other agreements between the Federal Government and units of
State or local governments covered by OMB Circular A-102,"Grants and Cooperative Agreements with State and
Federal Register Local Governments,"and the Federal agencies'grants management common rule which standardized and codified the
FOIA administrative requirements Federal agencies impose on State and local grantees.In addition,subawards and
No FEAR contracts to State or local governments are not covered by this Circular.However,this Circular applies to subawards
OMB Locator made by State and local governments to organizations covered by this Circular.Federal agencies may apply the
provisions of this Circular to commercial organizations,foreign governments,organizations under the jurisdiction of
foreign governments,and international organizations.
4.Definitions.Definitions of key terms used in this Circular are contained in Section_.2 in the Attachment.
5.Required Action.The specific requirements and responsibilities of Federal agencies and institutions of higher
education,hospitals,and other non-profit organizations are set forth in this Circular.Federal agencies responsible for
awarding and administering grants to and other agreements with organizations described in paragraph 1 shall adopt
the language in the Circular unless different provisions are required by Federal statute or are approved by OMB.
6.OMB Responsibilities.OMB will review agency regulations and implementation of this Circular,and will provide
interpretations of policy requirements and assistance to insure effective and efficient implementation.Any exceptions
will be subject to approval by OMB,as indicated in Section .4 in the Attachment.Exceptions will only be made in
particular cases where adequate justification is presented.
7.Information Contact.Further information concerning this Circular may be obtained by contacting the Office of
Federal Financial Management,Office,of Management and Budget,Washington,DC 20503,telephone(202)395-
3993.
8.Termination Review Date.This Circular will have a policy review three years from date of issuance.
9.Effective Date.The standards set forth in this Circular which affect Federal agencies will be effective 30 days after
publication of the final revision in the Federal Register.Those standards which Federal agencies impose on grantees
http://www.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
nsition to Housing: Defining
ESG program requirement,HUD will y3)HUD may suspend payments to' Homeless
the extent HUD deems it necessary to
give the recipient notice of this preclude the further expenditure of AGENCY:Office of the Assistant
determination and an opportunity to funds for affected activities. Secretary for Community Planning and
demonstrate,within the time prescribed (4)HUD may remove the recipient . Development,HUD.
by HUD and on the basis of substantial from participation in reallocations of ACTION:Final rule.
facts and data,that the recipient has funds under subpart D of this part.
complied with Emergency Solutions (5)HUD may deny matching credit for SUMMARY:The Homeless Emergency
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
S
(a)Accrued expenditures means the charges incurred by the recipient during a given period requiring the provision
of funds for:(1)goods and other tangible property received:(2)services performed by employees,contractors,
subrecipients,and other payees:and,(3)other amounts becoming owed under programs for which no current services
or performance is required.
(b)Accrued income means the sum of:(1)earnings during a given period from(i)services performed by the
recipient,and(ii)goods and other tangible property delivered to purchasers,and(2)amounts becoming owed to the
recipient for which no current services or performance is required by the recipient.
(c)Acquisition cost of equipment means the net invoice price of the equipment,including the cost of modifications, •
attachments,accessories,or auxiliary\apparatus necessary to make the property usable for the purpose for which it
was acquired.Other charges,such as the cost of installation,transportation,taxes.duty or protective in-transit
insurance.shall be included or excluded from the unit acquisition cost in accordance with the recipient's regular
accounting practices.
(d)Advance means a payment made by Treasury check or other appropriate payment mechanism to a recipient upon
its request either before outlays are made by the recipient or through the use of predetermined payment schedules.
(e)Award means financial assistance that provides support or stimulation to accomplish a public purpose.Awards
include grants and other agreements in the form of money or properly in lieu of money,by the Federal Government to
an eligible recipient.The term does not include:technical assistance,which provides services instead of money;other
assistance in the form of loans,loan guarantees,interest subsidies,or insurance;direct payments of any kind to
individuals;and,contracts which are required to be entered into and administered under procurement laws and
•
regulations.
(f)Cash contributions means the recipient's cash outlay,including the outlay of money contributed to the recipient by
third parties.
(g)Closeout means the process by which a Federal awarding agency determines that all applicable administrative
actions and all required work of the award have been completed by the recipient and Federal awarding agency.
(h)Contract means a procurement contract under art award or subaward,and a procurement subcontract under a •
recipient's or subrecipient's contract.
(i)Cost sharing or matching means that portion of project or program costs not borne by the Federal Government.
(j)Date of completion means the date on which all work under an award is completed or the date on the award
document,or any supplement or amendment thereto,on which Federal sponsorship ends.
• (k)Disallowed costs means those charges to an award that the Federal awarding agency determines to be
unallowable,in accordance with the applicable Federal cost principles or other terms and conditions contained in the
award.
(I)Equipment means tangible nonexpendable personal property including exempt property charged directly to the
award having a useful life of more than one year and an acquisition cost of$5000 or more per unit.However.
consistent with recipient policy,lower limits may be established.
• (m)Excess property means property under the control of any Federal awarding agency that,as determined by the
head thereof,is no longer required for its needs or the discharge of Its responsibilities.
(n)Exempt property means tangible personal property acquired in whole or in part with Federal funds,where the
Federal awarding agency has statutory authority to vest title in the recipient without further obligation to the Federal
Government.An example of exempt property authority is contained in the Federal Grant and Cooperative Agreement
Act(31 U.S.C.6306),for property acquired under an award to conduct basic or applied research by a non-profit
institution of-higher education or non-profit organization whose principal purpose is conducting scientific research.
(o)Federal awarding agency means the Federal agency that provides an award to the recipient.
(p)Federal funds authorized means the total amount of Federal funds obligated by the Federal Government for use
by the recipient.This amount may include any authorized carryover of unobligated funds from prior funding periods
when permitted by agency regulations or agency implementing instructions.
(q)-Federal share of real property,equipment,or supplies means that percentage of the property's acquisition costs
and any improvement expenditures paid with Federal funds.
(r)Funding period means the period of time when Federal funding is available for obligation by the recipient.
(s)Intangible property and debt instruments means,but is not limited to,trademarks,copyrights,patents and
patent applications and such property as loans,notes and other debt instruments,lease agreements,stock and other
instruments of property ownership,whether considered tangible or intangible.
http://www.whitehouse.gov/omb/circularsal 10/ 7/16/2012
Federal agencies impose on grantees
http://www.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
nsition to Housing: Defining
ESG program requirement,HUD will y3)HUD may suspend payments to' Homeless
the extent HUD deems it necessary to
give the recipient notice of this preclude the further expenditure of AGENCY:Office of the Assistant
determination and an opportunity to funds for affected activities. Secretary for Community Planning and
demonstrate,within the time prescribed (4)HUD may remove the recipient . Development,HUD.
by HUD and on the basis of substantial from participation in reallocations of ACTION:Final rule.
facts and data,that the recipient has funds under subpart D of this part.
complied with Emergency Solutions (5)HUD may deny matching credit for SUMMARY:The Homeless Emergency
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
(t)Obligations means the amounts of orders placed,contracts and grants awarded,services received and similar
transactions during a given period that require payment by the recipient during the same or a future period.
•
(u)Outlays or expenditures means charges made to the project or program.They may be reported on a cash or
accrual basis.For reports prepared on a cash basis.outlays are the sum of cash disbursements for direct charges for
goods and services,the amount of indirect expense charged,the value of third party in-kind contributions applied and
the amount of cash advances and payments made to subrecipients.For reports prepared on an accrual basis,outlays
are the sum of cash disbursements for direct charges for goods and services,the amount of indirect expense incurred,
the value of in-kind contributions applied,and the net increase(or decrease)in the amounts owed by the recipient for
goods and other property received,for services performed by employees,contractors,subrecipients and other payees
and other amounts becoming owed under programs for which no current services or performance are required.
(v)Personal property means property of any kind except real property.It may be tangible,having physical existence,
or intangible,having no physical existence,such as copyrights,patents,or securities.
(w)Prior approval means written approval by an authorized official evidencing prior consent. •
(x)Program income means gross income earned by the recipient that is directly generated by a supported activity or
earned as a result of the award(see exclusions in paragraphs_.24(e)and(h)).Program income includes,but is not
limited to,income from fees for services performed.the use or rental of real or personal property acquired under
federally-funded projects,the sale of commodities or items fabricated under an award,license fees and royalties on
patents and copyrights,and interest on loans made with award funds.Interest earned on advances of Federal funds is
not program income.Except as otherwise provided in Federal awarding agency regulations or the terms and
conditions of the award,program income does not include the receipt of principal on loans,rebates,credits.discounts,
etc.,or interest earned on any of them.
(y)Project costs means all allowable costs,as set forth in the applicable Federal cost principles,incurred by a
recipient and the value of the contributions made by third parties in accomplishing the objectives of the award during
the project period.
(z)Project period means the period established in the award document during which Federal sponsorship begins and
ends.
(aa)Property means,unless otherwise stated,real property,equipment,intangible property and debt instruments.
(bb)Real property means land,including land improvements,structures and appurtenances thereto,but excludes
movable machinery and equipment.
(cc)Recipient means an organization receiving financial assistance directly front Federal awarding agencies to carry
out a project or program.The term includes public and private institutions of higher education,public and private
hospitals,and other quasi-public and private non-profit organizations such as,but not limited to,community action
agencies,research institutes,educational associations.and health centers.The term may include commercial
organizations.foreign or intemational organizations(such as agencies of the United Nations)which are recipients.
subrecipients,or contractors or subcontractors of recipients or subrecipients at the discretion of the Federal awarding
agency.The term does not include government-owned contractor-operated facilities or research centers providing
continued support for mission-oriented,large-scale programs that are government-owned or controlled,or are
designated as federally-funded research and development centers.
(dd)Research and development means all research activities,both basic and applied,and all development activities
that are supported at universities,colleges,and other non-profit institutions."Research"is defined as a systematic
study directed toward fuller scientific knowledge or understanding of the subject studied."Development"is the
•
systematic use of knowledge and understanding gained from research directed toward the production of useful
materials,devices,systems,or methods,including design and development of prototypes and processes.The term
research also includes activities involving the training of individuals in research techniques where such activities utilize
the same facilities as other research and development activities and where such activities are not included in the
instruction function.
(ee)Small awards means a grant or cooperative agreement not exceeding the small purchase threshold fixed at 41
U.S.C.403(11)(currently$25,000).
(f)Subaward means an award of financial assistance in the form of money,or property in lieu of money,made under
an award by a recipient to an eligible subrecipient or by a subrecipient to a lower tier subrecipient.The.term includes
financial assistance when provided by any legal agreement.even if the agreement is called a contract,but does not
include procurement of goods and services nor does it include any form of assistance which is excluded from the
definition of"award"in paragraph(e).
(gg)Subrecipient means the legal entity to which a subaward is made and which is accountable to the recipient for
the use of the funds provided.The term may include foreign or international organizations(such as agencies of the
United Nations)at the discretion of the Federal awarding agency.
(hh)Supplies means all personal property excluding equipment,intangible property,and debt instruments as defined
in this section,and inventions of a contractor conceived or first actually reduced to practice in the performance of work
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Solutions (5)HUD may deny matching credit for SUMMARY:The Homeless Emergency
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
under a funding agreement("subject inventions"),as defined in 37 CFR part 401,"Rights to Inventions Made by
Nonprofit Organizations and Small Business Firms Under Government Grants,Contracts,and Cooperative
Agreements."
(ii)Suspension means an action by a Federal awarding agency that temporarily withdraws Federal sponsorship under
art award,pending corrective action by the recipient or pending a decision to terminate the award by the Federal
awarding agency.Suspension of an award is a separate action from suspension under Federal agency regulations
implementing E.O.s 12549 and 12689,"Debarment and Suspension."
(jj)Termination means the cancellation of Federal sponsorship.in whole or in part,under an agreement at any time
prior to the date of completion.
(kk)Third party in-kind contributions means the value of non-cash contributions provided by non-Federal third
parties.Third party in-kind contributions may be in the form of real property,equipment,supplies and other expendable
property,and the value of goods and services directly benefiting and specifically identifiable to the project or program.
(II)Unliquidated obligations,for financial reports prepared on a cash basis,means the amount of obligations
incurred by the recipient that have not been paid.For reports prepared on an accrued expenditure basis,they
represent the amount of obligations incurred by the recipient for which an outlay has not been recorded.
(mm)Unobligated balance means the portion of the funds authorized by the Federal awarding agency that has not
been obligated by the recipient and is determined by deducting the cumulative obligations from the cumulative funds
authorized.
(nn)Unrecovered indirect cost means the difference between the amount awarded and the amount which could
have been awarded under the recipient's approved negotiated indirect cost rate.
(oo)Working capital advance means a procedure where by funds are advanced to the recipient to cover its
estimated disbursement needs fora given initial period.
_.3 Effect on other issuances.For awards subject to this Circular,all administrative requirements of codified
program regulations,program manuals,handbooks and other nonregulatory materials which are inconsistent with the
requirements of this Circular shall be superseded,except to the extent they are required by statute,or authorized in
accordance with the deviations provision in Section_.4.
_.4 Deviations.The Office of Management and Budget(OMB)may grant exceptions for classes of grants or
recipients subject to the requirements of this Circular when exceptions are not prohibited by statute.However,in the
interest of maximum uniformity,exceptions from the requirements of this Circular shall be permitted only in unusual
circumstances.Federal awarding agencies may apply more restrictive requirements to a class of recipients when
approved by OMB.Federal awarding agencies may apply less restrictive requirements when awarding small awards,
except for those requirements which are statutory.Exceptions on a case-by-case basis may also be made by Federal
awarding agencies.
_.5 Subawards.Unless sections of this Circular specifically exclude subrecipients from coverage,the provisions of
this Circular shall be applied to subrecipients performing work under awards if such subrecipients are institutions of
higher education,hospitals or other non-profit organizations.State and local government subrecipients are subject to
the provisions of regulations implementing the grants management common rule"Uniform Administrative
Requirements for Grants and Cooperative Agreements to State and Local Governments,"published at 53 FR 8034
(3/11/88).
SUBPART B-Pre-Award Requirements
_.10 Purpose.Sections .11 through_.17 prescribes forms and instructions and other pre-award matters to be
used in applying for Federal awards.
_.11 Pre-award policies.
(a)Use of Grants and Cooperative Agreements,and Contracts.In each instance,the Federal awarding agency shall
decide on the appropriate award instrument(i.e.,grant,cooperative agreement,or contract).The Federal Grant and
Cooperative Agreement Act(31 U.S.C.6301-08)governs the use of grants,cooperative agreements and contracts.A
grant or cooperative agreement shall be used only when the principal purpose of a transaction is to accomplish a
public purpose of support or stimulation authorized by Federal statute.The statutory criterion for choosing between
grants and cooperative agreements is that for the latter,"substantial involvement is expected between the executive
agency and the State,local government,or other recipient when carrying out the activity contemplated in the
agreement."Contracts shall be used when the principal purpose is acquisition of property or services for the direct
benefit or use of the Federal Government.
(b)Public Notice and Priority Setting.Federal awarding agencies shall notify the public of its intended funding priorities
for discretionary grant programs.unless funding priorities are established by Federal statute.
.12 Forms for applying for Federal assistance. •
http://www.whitehouse.gov/omb/circularsa l 10/ 7/16/2012
ces nor does it include any form of assistance which is excluded from the
definition of"award"in paragraph(e).
(gg)Subrecipient means the legal entity to which a subaward is made and which is accountable to the recipient for
the use of the funds provided.The term may include foreign or international organizations(such as agencies of the
United Nations)at the discretion of the Federal awarding agency.
(hh)Supplies means all personal property excluding equipment,intangible property,and debt instruments as defined
in this section,and inventions of a contractor conceived or first actually reduced to practice in the performance of work
http://www.whitehouse.gov/omb/circulars_al.1 0/ 7/16/2012
Solutions (5)HUD may deny matching credit for SUMMARY:The Homeless Emergency
Grant(ESG)requirements.HUD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
l ♦V 1\L • 1LJAL1_, l 1l 1/I/J 1 1,1 A Nl LLIVI 1 1111V11NVN /I JVI.1/ I A 11V VT 1111..V A AV NO, 1 1.4.5V I
•
•
(a)Federal awarding agencies shall comply with the applicable report clearance requirements of 5 CFR part 1320.
"Controlling Paperwork Burdens on the Public,"with regard to all forms used by the Federal awarding agency in place
of or as a supplement to the Standard Form 424(SF-424)series.
(b)Applicants shall use the SF-424 series or those forms and instructions prescribed by the Federal awarding agency.
(c)For Federal programs covered by E.O.12372,"Intergovernmental Review of Federal Programs,"the applicant shall
complete the appropriate sections of the SF-424(Application for Federal Assistance)indicating whether the application
was subject to review by the State Single Point of Contact(SPOC).The name and address of the SPOC for a
particular State can be obtained from the Federal awarding agency or the Catalog of Federal Domestic Assistance.
The SPOC shall advise the applicant whether the program for which application is made has been selected by that
State for review.
(d)Federal awarding agencies that do not use the SF-424 form should indicate whether the application is subject to
review by the State under E.O.12372.
•
.13 Debarment and suspension.Federal awarding agencies and recipients shall comply with the nonprocurement
debarment and suspension common rule implementing E.O.s 12549 and 12689,"Debarment and Suspension."This
common rule restricts subawards and contracts with certain parties that are debarred,suspended or otherwise
excluded from or ineligible for participation in Federal assistance programs or activities.
.14 Special award conditions.If an applicant or recipient:(a)has a history of poor performance,(b)is not
•
financially stable,(c)has a management system that does not meet the standards prescribed in this Circular,(d)has
not conformed to the terms and conditions of a previous award,or(e)is not otherwise responsible,Federal awarding
agencies may impose additional requirements as needed,provided that such applicant or recipient is notified in writing
as to:the nature of the additional requirements,the reason why the additional requirements are being imposed,the
nature of the corrective action needed,the time allowed for completing the corrective actions,and the method for
•
requesting reconsideration of the additional requirements imposed.Any special conditions shall be promptly removed
once the conditions that prompted them have been corrected.
15 Metric system of measurement.The Metric Conversion Act,as amended by the Omnibus Trade and
Competitiveness Act(15 U.S.C.205)declares that the metric system is the preferred measurement system for U.S.
trade and commerce.The Act requires each Federal agency to establish a date or dates in consultation with the
Secretary of Commerce,when the metric system of measurement will be used in the agency's procurements,grants,
and other business-related activities.Metric implementation may take longer where the use of the system is initially
impractical or likely to cause significant inefficiencies in the accomplishment of federally-funded activities.Federal
awarding agencies shall follow the provisions of E.O.12770,"Metric Usage in Federal Government Programs."
.16 Resource Conservation and Recovery Act tRCRA)(Pub.L.94-580 codified at 42 U.S.C.6962).Under the Act,
any State agency or agency of a political subdivision of a State which is using appropriated Federal funds must comply
with Section 6002.Section 6002 requires that preference be given in procurement programs to the purchase of
specific products containing recycled materials identified in guidelines developed by the Environmental Protection
Agency(EPA)(40 CFR parts 247-254).Accordingly,State and local institutions of higher education,hospitals,and non
-profit organizations that receive direct Federal awards or other Federal funds shall give preference in their
procurement programs funded with Federal funds to the purchase of recycled products pursuant to the EPA
guidelines.
.17 Certifications and representations.Unless prohibited by statute or codified regulation,each Federal awarding
agency is authorized and encouraged to allow recipients to submit certifications and representations required by
statute,executive order,or regulation on an annual basis,if the recipients have ongoing and continuing relationships
with the agency.Annual certifications and representations shall be signed by responsible officials with the authority to
ensure recipients'compliance with the pertinent requirements.
SUBPART C-Post-Award Requirements
Financial and Program Management
_.20 Purpose of financial and program management.Sections__.21 through .28 prescribe standards for
financial management systems,methods for making payments and rules for:satisfying cost sharing and matching
requirements,accounting for program income,budget revision approvals,making audits,determining allowability of
cost,and establishing fund availability.
.21 Standards for financial management systems.
(a)Federal awarding agencies shall require recipients to relate financial data to performance data and develop unit
cost information whenever practical.
(b)Recipients'financial management systems shall provide for the following.
(1)Accurate,current and complete disclosure of the financial results of each federally-sponsored project or
program in accordance with the reporting requirements set forth in Section_.52.If a Federal awarding agency
requires reporting on an accrual basis from a recipient that maintains its records on other than an accrual basis,
the recipient shall not be required to establish an accrual accounting system.These recipients may develop such
accrual data for its reports on the basis of an analysis of the documentation on hand.
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UD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
1
(2)Records that identify adequately the source and application of funds for federally-sponsored activities.These
• records shall contain information pertaining to Federal awards.authorizations,obligations.unobligated balances,
assets,outlays,income and interest.
•(3)Effective control over and accountability for all funds,property and other assets.Recipients shall adequately •
safeguard all such assets and assure they are used solely for authorized purposes.
(4)Comparison of outlays with budget amounts for each award.Whenever appropriate,financial information
should be related to performance and unit cost data.
(5)Written procedures to minimize the time elapsing between the transfer of funds to the recipient from the U.S.
Treasury and the issuance or redemption of checks.warrants or payments by other means for program purposes
by the recipient.To the extent that the provisions of the Cash Management Improvement Act(CMIA)(Pub.L.
101-453)govern,payment methods of State agencies,instrumentalities.and fiscal agents shall be consistent
with CMIA Treasury-State Agreements or the CMIA default procedures codified at 31 CFR part 205,"Withdrawal
of Cash from the Treasury for Advances under Federal Grant and Other Programs."
(6)Written procedures for determining the reasonableness,allocabitity and allowability of costs in accordance
with the provisions of the applicable Federal cost principles and the terms and conditions of the award.
(7)Accounting records including cost accounting records that are supported by source documentation.
•
(c)Where the Federal Government guarantees or insures the repayment of money borrowed by the recipient,the
Federal awarding agency,at its discretion.may require adequate bonding and insurance if the bonding and insurance
requirements of the recipient are not deemed adequate to protect the interest of the Federal Government.
(d)The Federal awarding agency may require adequate fidelity bond coverage where the recipient lacks sufficient
coverage to protect the Federal Government's interest.
(e)Where bonds are required in the situations described above,the bonds shallbe obtained from companies holding
certificates of authority as acceptable sureties,as prescribed in 31 CFR part 223."Surety Companies Doing Business
with the United States."
.22 Payment.
(a)Payment methods shall minimize the time elapsing between the transfer of funds from the United States Treasury
and the issuance or redemption of checks,warrants,or payment by other means by the recipients.Payment methods
' of State agencies or instrumentalities shall be consistent with Treasury-State CMIA agreements or default procedures
codified at 31 CFR part 205.
(b)Recipients are to be paid in advance,provided they maintain or demonstrate the willingness to maintain:(1)written
procedures that minimize the time elapsing between the transfer of funds and disbursement by the recipient,and(2)
financial management systems that meet the standards for fund control and accountability as established in Section
.21.Cash advances toe recipient organization shall be limited to the minimum amounts needed and be timed to
be in accordance with the actual,immediate cash requirements of the recipient organization in carrying out the
purpose of the approved program or project.The timing and amount of cash advances shall be as close as is
administratively feasible to the actual disbursements by the recipient organization for direct program or project costs
and the proportionate share of any allowable indirect costs.
(c)Whenever possible,advances shall be consolidated to cover anticipated cash needs for all awards made by the
Federal awarding agency to the recipient.
(1)Advance payment mechanisms include,but are not limited to,Treasury check and electronic funds transfer.
(2)Advance payment mechanisms are subject to 31 CFR part 205.
(3)Recipients shall be authorized to submit requests for advances and reimbursements at least monthly when
electronic fund transfers are not used.
(d)Requests for Treasury check advance payment shall be submitted on SF-270."Request for Advance or
Reimbursement."or other forms as may be authorized by OMB.This form is not to be used when Treasury check
advance payments are made to the recipient automatically through the use of a predetermined payment schedule or if
precluded by special Federal awarding agency instructions for electronic funds transfer.
(e)Reimbursement is the preferred method when the requirements in paragraph(b)cannot be met.Federal awarding
agencies may also use this method on any construction agreement,or if the major portion of the construction project Is
accomplished through private market financing or Federal loans,and the Federal assistance constitutes a minor
portion of the project.
http://www.whitehouse.gov/omb/circulars_a 110/ 7/16/2012
sharing and matching
requirements,accounting for program income,budget revision approvals,making audits,determining allowability of
cost,and establishing fund availability.
.21 Standards for financial management systems.
(a)Federal awarding agencies shall require recipients to relate financial data to performance data and develop unit
cost information whenever practical.
(b)Recipients'financial management systems shall provide for the following.
(1)Accurate,current and complete disclosure of the financial results of each federally-sponsored project or
program in accordance with the reporting requirements set forth in Section_.52.If a Federal awarding agency
requires reporting on an accrual basis from a recipient that maintains its records on other than an accrual basis,
the recipient shall not be required to establish an accrual accounting system.These recipients may develop such
accrual data for its reports on the basis of an analysis of the documentation on hand.
http://www.whitehouse.gov/omb/circulars_a 110/ 7/16/2012
UD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
1\�V L/t 11\ 11. 1 1V 1\L V 1LJLL A 1/ 1l/l✓ .1 SO 1 141 t11V1 11111V11UV41 l/✓V/// I 111S,. ♦I 1111� 11Vl40\. V1 Ll
(1)When the reimbursement method is used,the Federal awarding agency shall make payment within 30 days
after receipt of the billing,unless the billing is improper.
•(2)Recipients shall be authorized to submit request for reimbursement at least monthly when electronic funds
transfers are not used.
(f)If a recipient cannot meet the criteria for advance payments and the Federal awarding agency has determined that
reimbursement is not feasible because the recipient lacks sufficient working capital,the Federal awarding'agency may
provide cash on a working capital advance basis.Under this procedure,the Federal awarding agency shall advance
cash to the recipient to cover its estimated disbursement needs for an initial period generally geared to the awardee's
disbursing cycle.Thereafter,the Federal awarding agency shall reimburse the recipient for its actual cash
disbursements.The working capital advance method of payment shall not be used for recipients unwilling or unable to
provide timely advances to their subrecipient to meet the subrecipient's actual cash disbursements.
(g)To the extent available,recipients shall disburse funds available from repayments to and interest earned on a
revolving fund,program income,rebates,refunds.contract settlements,audit recoveries and interest earned on such
funds before requesting additional cash payments.
(h)Unless otherwise required by statute,Federal awarding agencies shall not withhold payments for proper charges
made by recipients at any time during the project period unless(1)or(2)apply.
(1)A recipient has failed to comply with the project objectives,the terms and conditions of the award.or Federal
reporting requirements.
(2)The recipient or subrecipient is delinquent in a debt to the United States as defined in OMB Circular A-129.
"Managing Federal Credit Programs."Under such conditions,the Federal awarding agency may,upon
reasonable notice,inform the recipient that payments shall not be made for obligations incurred after a specified
date until the conditions are corrected or the indebtedness to the Federal Government is liquidated.
(i)Standards governing the use of banks and other institutions as depositories of funds advanced under awards are as
follows.
(1)Except for situations described in paragraph(i)(2),Federal awarding agencies shall not require separate
depository accounts for funds provided to a recipient or establish any eligibility requirements for depositories for
funds provided to a recipient.However,recipients must be able to account for the receipt,obligation and •
expenditure of funds.
(2)Advances of Federal funds shall be deposited and maintained in insured accounts whenever possible.
(j)Consistent with the national goal of expanding the opportunities for women-owned and minority-owned business
enterprises,recipients shall be encouraged to use women-owned and minority-owned banks(a bank which is owned
at least 50 percent by women or minority group members).
(k)Recipients shall maintain advances of Federal funds in interest bearing accounts,unless(1),(2)or(3)apply.
(1)The recipient receives less than$120,000 in Federal awards per year.
(2)The best reasonably available interest bearing account would not be expected to earn interest in excess of
$250 per year on Federal cash balances.
•
(3)The depository would require an average or minimum balance so high that it would not be feasible within the
expected Federal and non-Federal cash resources.
(I)For those entities where CMIA and its implementing regulations do not apply,interest earned on Federal advances
•
deposited in interest bearing accounts shall be remitted annually to Department of Health and Human Services,
Payment Management System,Rockville,MID 20852.Interest amounts up to$250 per year may be retained by the
recipient for administrative expense.State universities and hospitals shall comply with CMIA,as it pertains to interest.
If an entity subject to CMIA uses its own funds to pay pre-award costs for discretionary awards without prior written
approval from the Federal awarding agency,it waives its right to recover the interest under CMIA.
(m)Except as noted elsewhere in this Circular,only the following forms shall be authorized for the recipients in
requesting advances and reimbursements.Federal agencies shall not require more than an original and two copies of
•
these forms.
(1)SF-270,Request for Advance or Reimbursement.Each Federal awarding agency shall adopt the SF-270 as
a standard form for all nonconstruction programs when electronic funds transfer or predetermined advance
methods are not used.Federal awarding agencies.however,have the option of using this form for construction
programs in lieu of the SF-271."Outlay Report and Request for Reimbursement for Construction Programs."
http://www.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
establishing fund availability.
.21 Standards for financial management systems.
(a)Federal awarding agencies shall require recipients to relate financial data to performance data and develop unit
cost information whenever practical.
(b)Recipients'financial management systems shall provide for the following.
(1)Accurate,current and complete disclosure of the financial results of each federally-sponsored project or
program in accordance with the reporting requirements set forth in Section_.52.If a Federal awarding agency
requires reporting on an accrual basis from a recipient that maintains its records on other than an accrual basis,
the recipient shall not be required to establish an accrual accounting system.These recipients may develop such
accrual data for its reports on the basis of an analysis of the documentation on hand.
http://www.whitehouse.gov/omb/circulars_a 110/ 7/16/2012
UD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
(2)SF-271.Outlay Report and Request for Reimbursement for Construction Programs.Each Federal awarding
agency shall adopt the SF-271 as the standard form to be used for requesting reimbursement for construction
programs.However,a Federal awarding agency may substitute the SF-270 when the Federal awarding agency
•
determines that it provides adequate information to meet Federal needs.
•
_.23 Cost sharing or matching.
(a)All contributions,including cash and third party in-kind,shall be accepted as part of the recipient's cost sharing or
matching when such contributions meet all of the following criteria.
(1)Are verifiable from the recipient's records.
• (2)Are not included as contributions for any other federally-assisted project or program.
(3)Are necessary and reasonable for proper and efficient accomplishment of project or program objectives.
(4)Are allowable under the applicable cost principles.
(5)Are not paid by the Federal Government under another award,except where authorized by Federal statute to
be used for cost sharing or matching.
(6)Are provided for in the approved budget when required by the Federal awarding agency.
(7)Conform to other provisions of this Circular,as applicable.
(b)Unrecovered indirect costs may be included as part of cost sharing or matching only with the prior approval of the
Federal awarding agency.
(c)Values for recipient contributions of services and property shall be established in accordance with the applicable
cost principles.If a Federal awarding agency authorizes recipients to donate buildings or land for construction/facilities
acquisition projects or long-term use.the value of the donated property for cost sharing or matching shall be the lesser
of(1)or(2).
(1)The certified value of the remaining life of the property recorded in the recipient's accounting records at the
time of donation.
(2)The current fair market value.However,when there is sufficient justification,the Federal awarding agency
may approve the use of the current fair market value of the donated property,even if it exceeds the certified
value at the time of donation to the project.
(d)Volunteer services furnished by professional and technical personnel,consultants.and other skilled and unskilled
labor may he counted as cost sharing or matching if the service is an integral and necessary part of an approved
project or program.Rates for volunteer services shall be consistent with those paid for similar work in the recipient's
organization.In those instances in which the required skills are not found in the recipient organization,rates shall be
consistent with those paid for similar work in the labor market in which the recipient competes for the kind of services
involved.In either case,paid fringe benefits that are reasonable,allowable,and allocable may be included in the
valuation.
(e)When an employer other than the recipient furnishes the services of an employee,these services shall be valued at
the employee's regular rate of pay(plus an amount of fringe benefits that are reasonable,allowable,and allocable,but
exclusive of overhead costs),provided these services are in the same skill for which the employee is normally paid.
http://www.whitehouse.gov/omb/circulars_al 10/ 7/1 6/201 2
expected to earn interest in excess of
$250 per year on Federal cash balances.
•
(3)The depository would require an average or minimum balance so high that it would not be feasible within the
expected Federal and non-Federal cash resources.
(I)For those entities where CMIA and its implementing regulations do not apply,interest earned on Federal advances
•
deposited in interest bearing accounts shall be remitted annually to Department of Health and Human Services,
Payment Management System,Rockville,MID 20852.Interest amounts up to$250 per year may be retained by the
recipient for administrative expense.State universities and hospitals shall comply with CMIA,as it pertains to interest.
If an entity subject to CMIA uses its own funds to pay pre-award costs for discretionary awards without prior written
approval from the Federal awarding agency,it waives its right to recover the interest under CMIA.
(m)Except as noted elsewhere in this Circular,only the following forms shall be authorized for the recipients in
requesting advances and reimbursements.Federal agencies shall not require more than an original and two copies of
•
these forms.
(1)SF-270,Request for Advance or Reimbursement.Each Federal awarding agency shall adopt the SF-270 as
a standard form for all nonconstruction programs when electronic funds transfer or predetermined advance
methods are not used.Federal awarding agencies.however,have the option of using this form for construction
programs in lieu of the SF-271."Outlay Report and Request for Reimbursement for Construction Programs."
http://www.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
establishing fund availability.
.21 Standards for financial management systems.
(a)Federal awarding agencies shall require recipients to relate financial data to performance data and develop unit
cost information whenever practical.
(b)Recipients'financial management systems shall provide for the following.
(1)Accurate,current and complete disclosure of the financial results of each federally-sponsored project or
program in accordance with the reporting requirements set forth in Section_.52.If a Federal awarding agency
requires reporting on an accrual basis from a recipient that maintains its records on other than an accrual basis,
the recipient shall not be required to establish an accrual accounting system.These recipients may develop such
accrual data for its reports on the basis of an analysis of the documentation on hand.
http://www.whitehouse.gov/omb/circulars_a 110/ 7/16/2012
UD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
•
L.11\V✓V L!-11\ A'11V 1W V 1 L7 LL 11/ 1//lJ AJ 1 L11 L11L.1 A111V11UL.0 J/JVI// I 111L. VV III L1, 11 V V1... 1 (AV, 11 Li L/
(f)Donated supplies may include such items as expendable equipment,office supplies,laboratory supplies or
workshop and classroom supplies.Value assessed to donated supplies included in the cost sharing or matching share
shall be reasonable and shall not exceed the fair market value of the property at the time of the donation.
(g)The method used for determining cost sharing or matching for donated equipment,buildings and land for which title
passes to the recipient may differ according to the purpose of the award,if(1)or(2)apply.
(1)If the purpose of the award is to assist the recipient in the acquisition of equipment,buildings or land,the total
value of the donated property may be claimed as cost sharing or matching.
(2)If the purpose of the award is to support activities that require the use of equipment,buildings or land,
normally only depreciation or use charges for equipment and buildings may be made.However,the full value of
equipment or other capital assets and fair rental charges for land may be allowed,provided that the Federal
awarding agency has approved the charges.
(h)The value of donated property shall be determined in accordance with the usual accounting policies of the •
recipient,with the following qualifications.
(1)The value of donated land and buildings shall not exceed its fair market value at the time of donation to the •
recipient as established by an independent appraiser(e.g..certified real property appraiser or General Services
Administration representative)and certified by a responsible official of the recipient.
(2)The value of donated equipment shall not exceed the fair market value of equipment of the same age and
condition at the time of donation.
(3)The value of donated space shall not exceed the fair rental value of comparable space as established by an
independent appraisal of comparable space and facilities in a privately-owned building in the same locality.
(4)The value of loaned equipment shall not exceed its fair rental value.
(5)The following requirements pertain to the recipient's supporting records for in-kind contributions from third
parties.
(i)Volunteer services shall be documented and,to the extent feasible,supported by the same methods
used by the recipient for its own employees.
(ii)The basis for determining the valuation for personal service,material,equipment,buildings and land
shall be documented.
_.24 Program income.
(a)Federal awarding agencies shall'apply the standards set forth in this section in requiring recipient organizations to
account for program income related to projects financed in whole or in part with Federal funds.
(b)Except as provided in paragraph(h)below,program income earned during the project period shall be retained by
the recipient and,in accordance with Federal awarding agency regulations or the terms and conditions of the award,
shall be used in one or more of the ways listed in the following.
http://www.whitehouse.gov/omb/circulars_al 1 0/ 7/16/2012
provided these services are in the same skill for which the employee is normally paid.
http://www.whitehouse.gov/omb/circulars_al 10/ 7/1 6/201 2
expected to earn interest in excess of
$250 per year on Federal cash balances.
•
(3)The depository would require an average or minimum balance so high that it would not be feasible within the
expected Federal and non-Federal cash resources.
(I)For those entities where CMIA and its implementing regulations do not apply,interest earned on Federal advances
•
deposited in interest bearing accounts shall be remitted annually to Department of Health and Human Services,
Payment Management System,Rockville,MID 20852.Interest amounts up to$250 per year may be retained by the
recipient for administrative expense.State universities and hospitals shall comply with CMIA,as it pertains to interest.
If an entity subject to CMIA uses its own funds to pay pre-award costs for discretionary awards without prior written
approval from the Federal awarding agency,it waives its right to recover the interest under CMIA.
(m)Except as noted elsewhere in this Circular,only the following forms shall be authorized for the recipients in
requesting advances and reimbursements.Federal agencies shall not require more than an original and two copies of
•
these forms.
(1)SF-270,Request for Advance or Reimbursement.Each Federal awarding agency shall adopt the SF-270 as
a standard form for all nonconstruction programs when electronic funds transfer or predetermined advance
methods are not used.Federal awarding agencies.however,have the option of using this form for construction
programs in lieu of the SF-271."Outlay Report and Request for Reimbursement for Construction Programs."
http://www.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
establishing fund availability.
.21 Standards for financial management systems.
(a)Federal awarding agencies shall require recipients to relate financial data to performance data and develop unit
cost information whenever practical.
(b)Recipients'financial management systems shall provide for the following.
(1)Accurate,current and complete disclosure of the financial results of each federally-sponsored project or
program in accordance with the reporting requirements set forth in Section_.52.If a Federal awarding agency
requires reporting on an accrual basis from a recipient that maintains its records on other than an accrual basis,
the recipient shall not be required to establish an accrual accounting system.These recipients may develop such
accrual data for its reports on the basis of an analysis of the documentation on hand.
http://www.whitehouse.gov/omb/circulars_a 110/ 7/16/2012
UD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
•
(1)Added to funds committed to the project by the Federal awarding agency and recipient and used to further
eligible project or program objectives.
(2)Used to finance the non-Federal share of the project or program.
• (3)Deducted from the total project or program allowable cost in determining the net allowable costs on which the
Federal share of costs is based.
(c)When an agency authorizes the disposition of program income as described in paragraphs(b)(1)or(b)(2),program
income in excess of any limits stipulated shall be used in accordance with paragraph(b)(3).
(d)In the event that the Federal awarding agency does not specify in its regulations or the terms and conditions of the
award how program income is to be used,paragraph(b)(3)shall apply automatically to all projects or programs except
research.For awards that support research,paragraph(b)(1)shall apply automatically unless the awarding agency
indicates in the terms and conditions another alternative on the award or the recipient is subject to special award
conditions,as indicated in Section_.14.
(e)Unless Federal awarding agency regulations or the terms and conditions of the award provide otherwise.recipients
shall have no obligation to the Federal Government regarding program income earned after the end of the project
period.
(f)If authorized by Federal awarding agency regulations or the terms and conditions of the award,costs incident to the
generation of program income may be deducted from gross income to determine program income,provided these
costs have not been charged to the award.
(g)Proceeds from the sale of property shall be handled in accordance with the requirements of the Property Standards
(See Sections_.30 through_.37).
(h)Unless Federal awardingagency regulations or the terms and condition of the awardprovide otherwise,recipients
9 Y 9 P
shall have no obligation to the Federal Government with respect to program income earned from license fees and
royalties for copyrighted material,patents,patent applications,trademarks.and inventions produced under an award.
However,Patent and Trademark Amendments(35 U.S.C.18)apply to inventions made under an experimental,
developmental,or research award.
_.25 Revision of budget and program plans.
(a)The budget plan is the financial expression of the project or program as approved during the award process.It may
include either the Federal and non-Federal share,or only the Federal share,depending upon Federal awarding
agency requirements.It shall be related to performance for program evaluation purposes whenever appropriate.
(b)Recipients are required to report deviations from budget and program plans.and request prior approvals for budget
and program plan revisions.in accordance with this section.
(c)For nonconstruction awards.recipients shall request prior approvals from Federal awarding agencies for one or
more of the following program or budget related reasons.
(1)Change in the scope or the objective of the project or program(even if there is no associated budget revision
requiring prior written approval).
(2)Change in a key person specified in the application or award document.
http://www.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
mployee is normally paid.
http://www.whitehouse.gov/omb/circulars_al 10/ 7/1 6/201 2
expected to earn interest in excess of
$250 per year on Federal cash balances.
•
(3)The depository would require an average or minimum balance so high that it would not be feasible within the
expected Federal and non-Federal cash resources.
(I)For those entities where CMIA and its implementing regulations do not apply,interest earned on Federal advances
•
deposited in interest bearing accounts shall be remitted annually to Department of Health and Human Services,
Payment Management System,Rockville,MID 20852.Interest amounts up to$250 per year may be retained by the
recipient for administrative expense.State universities and hospitals shall comply with CMIA,as it pertains to interest.
If an entity subject to CMIA uses its own funds to pay pre-award costs for discretionary awards without prior written
approval from the Federal awarding agency,it waives its right to recover the interest under CMIA.
(m)Except as noted elsewhere in this Circular,only the following forms shall be authorized for the recipients in
requesting advances and reimbursements.Federal agencies shall not require more than an original and two copies of
•
these forms.
(1)SF-270,Request for Advance or Reimbursement.Each Federal awarding agency shall adopt the SF-270 as
a standard form for all nonconstruction programs when electronic funds transfer or predetermined advance
methods are not used.Federal awarding agencies.however,have the option of using this form for construction
programs in lieu of the SF-271."Outlay Report and Request for Reimbursement for Construction Programs."
http://www.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
establishing fund availability.
.21 Standards for financial management systems.
(a)Federal awarding agencies shall require recipients to relate financial data to performance data and develop unit
cost information whenever practical.
(b)Recipients'financial management systems shall provide for the following.
(1)Accurate,current and complete disclosure of the financial results of each federally-sponsored project or
program in accordance with the reporting requirements set forth in Section_.52.If a Federal awarding agency
requires reporting on an accrual basis from a recipient that maintains its records on other than an accrual basis,
the recipient shall not be required to establish an accrual accounting system.These recipients may develop such
accrual data for its reports on the basis of an analysis of the documentation on hand.
http://www.whitehouse.gov/omb/circulars_a 110/ 7/16/2012
UD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
V 11�t.VLA1� A-1 1U 1LL, V 1J1LL 1 17/7J AD 1 LAl 111G1 A1111.11U1.0 7/JU/77 I 111G VV 11111, 11VU... 1 Cl6G 1J U1 4.7
(3)The absence for more than three months,or a 25 percent reduction in time devoted to the project,by the
approved project director or principal investigator.
(4)The need for additional Federal funding.
(5)The transfer of amounts budgeted for indirect costs to absorb increases in direct costs,or vice versa,if
approval is required by the Federal awarding agency.
(6)The inclusion,unless waived by the Federal awarding agency,of costs that require prior approval in
accordance with OMB Circular A-21,"Cost Principles for Educational Institutions,'OMB Circular A-122,"Cost
Principles for Non-Profit Organizations,"or 45 CFR part 74 Appendix E,"Principles for Determining Costs
Applicable to Research and Development under Grants and Contracts with Hospitals,"or 48 CFR part 31,
"Contract Cost Principles and Procedures,"as applicable.
(7)The transfer of funds allotted for training allowances(direct payment to.trainees)to other categories of
expense.
(8)Unless described in the application and funded in the approved awards,the subaward,transfer or contracting
out of any work under an award.This provision does not apply to the purchase of supplies,material,equipment.
or general support services. ,
(d)No other prior approval requirements for specific items may be imposed unless a deviation has been approved by
COMB.
(e)Except for requirements listed in paragraphs(c)(1)and(c)(4)of this section,Federal awarding agencies are
authorized.at their option,to waive cost-related and administrative prior written approvals required by this Circular and
OMB Circulars A-21 and A-122.Such waivers may include authorizing recipients to do any one or more of the
following.
(1)Incur pre-award costs 90 calendar days prior to award or more than 90 calendar days with the prior approval
of the Federal awarding agency.All pre-award costs are incurred at the recipient's risk(i.e.,the Federal awarding
agency is under no obligation to reimburse such costs if for any reason the recipient does not receive an award
or if the award is less than anticipated and inadequate to cover such costs).
(2)Initiate a one-time extension of the expiration date of the award of up to 12 months unless one or more of the
following conditions apply.For one-time extensions,the recipient must notify the Federal awarding agency in
writing with the supporting reasons and revised expiration date at least 10 days before the expiration date
specified in the award.This one-time extension may not be exercised merely for the purpose of using
unobligated balances.
(i)The terms and conditions of award prohibit the extension.
(ii)The extension requires additional Federal funds.
(iii)The extension involves any change in the approved objectives or scope of the project.
(3)Carry forward unobligated balances to subsequent funding periods. •
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(2)Change in a key person specified in the application or award document.
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mployee is normally paid.
http://www.whitehouse.gov/omb/circulars_al 10/ 7/1 6/201 2
expected to earn interest in excess of
$250 per year on Federal cash balances.
•
(3)The depository would require an average or minimum balance so high that it would not be feasible within the
expected Federal and non-Federal cash resources.
(I)For those entities where CMIA and its implementing regulations do not apply,interest earned on Federal advances
•
deposited in interest bearing accounts shall be remitted annually to Department of Health and Human Services,
Payment Management System,Rockville,MID 20852.Interest amounts up to$250 per year may be retained by the
recipient for administrative expense.State universities and hospitals shall comply with CMIA,as it pertains to interest.
If an entity subject to CMIA uses its own funds to pay pre-award costs for discretionary awards without prior written
approval from the Federal awarding agency,it waives its right to recover the interest under CMIA.
(m)Except as noted elsewhere in this Circular,only the following forms shall be authorized for the recipients in
requesting advances and reimbursements.Federal agencies shall not require more than an original and two copies of
•
these forms.
(1)SF-270,Request for Advance or Reimbursement.Each Federal awarding agency shall adopt the SF-270 as
a standard form for all nonconstruction programs when electronic funds transfer or predetermined advance
methods are not used.Federal awarding agencies.however,have the option of using this form for construction
programs in lieu of the SF-271."Outlay Report and Request for Reimbursement for Construction Programs."
http://www.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
establishing fund availability.
.21 Standards for financial management systems.
(a)Federal awarding agencies shall require recipients to relate financial data to performance data and develop unit
cost information whenever practical.
(b)Recipients'financial management systems shall provide for the following.
(1)Accurate,current and complete disclosure of the financial results of each federally-sponsored project or
program in accordance with the reporting requirements set forth in Section_.52.If a Federal awarding agency
requires reporting on an accrual basis from a recipient that maintains its records on other than an accrual basis,
the recipient shall not be required to establish an accrual accounting system.These recipients may develop such
accrual data for its reports on the basis of an analysis of the documentation on hand.
http://www.whitehouse.gov/omb/circulars_a 110/ 7/16/2012
UD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
•
(4)For awards that support research,unless the Federal awarding agency provides otherwise in the award or in
the agency's regulations,the prior approval requirements described in paragraph(e)are automatically waived
(i.e.,recipients need not obtain such prior approvals)unless one of the conditions included.in paragraph(e)(2)
applies.
•
(f)The Federal awarding agency may,at its option.restrict the transfer of funds among direct cost categories or
programs,functions and activities for awards in which the Federal share of the project exceeds$100,000 and the
cumulative amount of such transfers exceeds or is expected to exceed 10 percent of the total budget as last approved
by the Federal awarding agency.No Federal awarding agency shall permit a transfer that would cause any Federal •
appropriation or part thereof to be used for purposes other than those consistent with the original intent of the
appropriation.
(g)All other changes to nonconstruction budgets,except for the changes described in paragraph(j),do not require
prior approval.
(h)For construction awards.recipients shall request prior written approval promptly from Federal awarding agencies
for budget revisions whenever(1),(2)or(3)apply.
(1)The revision results front changes in the scope or the objective of the project or program.
(2)The need arises for additional Federal funds to complete the project.
(3)A revision is desired which involves specific costs for which prior written approval requirements may be
imposed consistent with applicable OMB cost principles listed in Section_.27.
(i)No other prior approval requirements for specific items may be imposed unless a deviation has been approved by
OMB.
(j)When a Federal awarding agency makes an award that provides support for both construction and nonconstruction
work,the Federal awarding agency may require the recipient to request prior approval from the Federal awarding
agency before making any fund or budget transfers between the two types of work supported.
(k)For both construction and nonconstruction awards,Federal awarding agencies shall require recipients to notify the
Federal awarding agency in writing promptly whenever the amount of Federal authorized funds is expected to exceed
the needs of the recipient for the project period by more than$5000 or five percent of the Federal award,whichever is
greater.This notification shall not be required if an application for additional funding is submitted for a continuation
award.
(I)When requesting approval for budget revisions,recipients shall use the budget forms that were used in the
application unless the Federal awarding agency indicates a letter of request suffices.
(m)Within 30 calendar days from the date of receipt of the request for budget revisions,Federal awarding agencies
shall review the request and notify the recipient whether the budget revisions have been approved.If the revision is
still under consideration at the end of 30 calendar days,the Federal awarding agency shall inform the recipient in
writing of the date when the recipient may expect the decision.
.26 Non-Federal audits.
(a)Recipients and subrecipients that are institutions of higher education or other non-profit organizations(including
hospitals)shall be subject to the audit requirements contained in the Single Audit Act Amendments of 1996(31 USC
7501-7507)and revised OMB Circular A-133,"Audits of States.Local Governments,and Non-Profit Organizations."
http://www.whitehouse.gov/omb/circulars al 10/ 7/16/2012
e feasible within the
expected Federal and non-Federal cash resources.
(I)For those entities where CMIA and its implementing regulations do not apply,interest earned on Federal advances
•
deposited in interest bearing accounts shall be remitted annually to Department of Health and Human Services,
Payment Management System,Rockville,MID 20852.Interest amounts up to$250 per year may be retained by the
recipient for administrative expense.State universities and hospitals shall comply with CMIA,as it pertains to interest.
If an entity subject to CMIA uses its own funds to pay pre-award costs for discretionary awards without prior written
approval from the Federal awarding agency,it waives its right to recover the interest under CMIA.
(m)Except as noted elsewhere in this Circular,only the following forms shall be authorized for the recipients in
requesting advances and reimbursements.Federal agencies shall not require more than an original and two copies of
•
these forms.
(1)SF-270,Request for Advance or Reimbursement.Each Federal awarding agency shall adopt the SF-270 as
a standard form for all nonconstruction programs when electronic funds transfer or predetermined advance
methods are not used.Federal awarding agencies.however,have the option of using this form for construction
programs in lieu of the SF-271."Outlay Report and Request for Reimbursement for Construction Programs."
http://www.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
establishing fund availability.
.21 Standards for financial management systems.
(a)Federal awarding agencies shall require recipients to relate financial data to performance data and develop unit
cost information whenever practical.
(b)Recipients'financial management systems shall provide for the following.
(1)Accurate,current and complete disclosure of the financial results of each federally-sponsored project or
program in accordance with the reporting requirements set forth in Section_.52.If a Federal awarding agency
requires reporting on an accrual basis from a recipient that maintains its records on other than an accrual basis,
the recipient shall not be required to establish an accrual accounting system.These recipients may develop such
accrual data for its reports on the basis of an analysis of the documentation on hand.
http://www.whitehouse.gov/omb/circulars_a 110/ 7/16/2012
UD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
' i1��v Lt ll� al 11J 1` :! V 1I.JLL 11I 1/I/✓ [1.3 1 1.41 L11Li11-1111V11L11,U /I✓VI// j 111L. YY 111L1, 11VUU... 1G6LJ 1✓ Ll1 L/
(b)State and local governments shall be subject to the audit requirements contained in the Single Audit Act
Amendments of 1996(31 USC 7501-7507)and revised OMB Circular A-133."Audits of States,Local Governments.
and Non-Profit Organizations."
(c)For-profit hospitals not covered by the audit provisions of revised OMB Circular A-133 shalt be subject to the audit
requirements of the Federal awarding agencies.
(d)Commercial organizations shall be subject to the audit requirements of the Federal awarding agency or the prime
recipient as incorporated into the award document.
_.27 Allowable costs.For each kind of recipient.there is a set of Federal principles for determining allowable costs.
Allowability of costs shall be determined in accordance with the cost principles applicable to the entity incurring the
costs.Thus,allowability of costs incurred by State.local or federally-recognized Indian tribal governments is
determined in accordance with the provisions of OMB Circular A-87,"Cost Principles for State,Local,and Indian Tribal
Governments."The allowability of costs incurred by non-profit organizations is determined in accordance with the
provisions of OMB Circular A-122,"Cost Principles for Non-Profit Organizations."The allowability of costs incurred by
institutions of higher education is determined in accordance with the provisions of OMB Circular A-21,"Cost Principles
for Educational Institutions."The allowability of costs incurred by hospitals is determined in accordance with the
provisions of Appendix E of 45 CFR part 74,"Principles for Determining Costs Applicable to Research and
Development Under Grants and Contracts with Hospitals."The allowability of costs incurred by commercial
organizations and those non-profit organizations listed in Attachment C to Circular A-122 is determined in accordance
with the provisions of the Federal Acquisition Regulation(FAR)at 48 CFR part 31.
_.28 Period of availability of funds.Where a funding period is specified,a recipient may charge to the grant only
allowable costs resulting from obligations incurred during the funding period and any pre-award costs authorized by
the Federal awarding agency.
_.29 Conditional exemptions.
•
(a)OMB authorizes conditional exemption from OMB administrative requirements and cost principles circulars for
certain Federal programs with statutorily-authorized consolidated planning and consolidated administrative funding,
that are identified by a Federal agency and approved by the head of the Executive department or establishment.A
Federal agency shall consult with OMB during its consideration of whether to grant such an exemption.
•
(b)To promote efficiency in State and local program administration,when Federal non-entitlement programs with
common purposes have specific statutorily-authorized consolidated planning and consolidated administrative funding •
and where most of the State agency's resources come from non-Federal sources,Federal agencies may exempt these
covered State-administered,non-entitlement grant programs from certain OMB grants management requirements.The
exemptions would be from all but the allocabitity of costs provisions of OMB Circulars A-87(Attachment A,subsection
C.3),'Cost Principles for State,Local,and Indian Tribal Governments,"A-21(Section C,subpart 4),."Cost Principles
for Educational Institutions,"and A-122(Attachment A.subsection A.4),"Cost Principles for Non-Profit Organizations,"
and from all of the administrative requirements provisions of OMB Circular A-1 10,"Uniform Administrative
Requirements for Grants and Agreements with Institutions of Higher Education,Hospitals,and Other Non-Profit
Organizations,"and the agencies'grants management common rule.
(c)When a Federal agency provides this flexibility,as a prerequisite to a State's exercising this option,a State must
•
adopt its own written fiscal and administrative requirements for expending and accounting for all funds,which are
consistent with the provisions of OMB Circular A-87,and extend such policies to all subrecipients.These fiscal and
administrative requirements must be sufficiently specific to ensure that:funds are used in compliance with all
applicable Federal statutory and regulatory provisions,costs are reasonable and necessary for operating these
programs,and funds are not be used for general expenses required to carry out other responsibilities of a State or its
subrecipients. •
Property Standards
_.30 Purpose of property standards.Sections .31 through_.37 set forth uniform standards governing
management and disposition of property furnished by the Federal Government whose cost was charged to a project
supported by a Federal award.Federal awarding agencies shall require recipients to observe these standards under
http://www.whitehouse.gov/omb/circulars_a 110/ 7/16/2012
for Reimbursement for Construction Programs."
http://www.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
establishing fund availability.
.21 Standards for financial management systems.
(a)Federal awarding agencies shall require recipients to relate financial data to performance data and develop unit
cost information whenever practical.
(b)Recipients'financial management systems shall provide for the following.
(1)Accurate,current and complete disclosure of the financial results of each federally-sponsored project or
program in accordance with the reporting requirements set forth in Section_.52.If a Federal awarding agency
requires reporting on an accrual basis from a recipient that maintains its records on other than an accrual basis,
the recipient shall not be required to establish an accrual accounting system.These recipients may develop such
accrual data for its reports on the basis of an analysis of the documentation on hand.
http://www.whitehouse.gov/omb/circulars_a 110/ 7/16/2012
UD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
awards and shall not impose additional requirements,unless specifically required by Federal statute.The recipient
may use its own property management standards and procedures provided it observes the provisions of Sections
.31 through_.37.
_.31 Insurance coverage.Recipients shall,at a minimum,provide the equivalent insurance coverage for real
property and equipment acquired with Federal funds as provided to property owned by the recipient.Federally-owned
property need not be insured unless required by the terms and conditions of the award.
_.32 Real property.Each Federal awarding agency shall prescribe requirements for recipients concerning the use
and disposition of real properly acquired in whole or in part under awards.Unless otherwise provided by statute,such
requirements,at a minimum,shall contain the following.
•
(a)Title to real property shall vest in the recipient subject to the condition that the recipient shall use the real property
for the authorized purpose of the project as long as it is needed and shall not encumber the property without approval
of the Federal awarding agency.
(b)The recipient shall obtain written approval by the Federal awarding agency for the use of real property in other
federally-sponsored projects when the recipient determines that the property is no longer needed for the purpose of
the original project.Use in other projects shall be limited to those under federally-sponsored projects(i.e.,awards)or
programs that have purposes consistent with those authorized for support by the Federal awarding agency.
•
(c)When the real properly is no longer needed as provided in paragraphs(a)and(b),the recipient shall request
disposition instructions from the Federal awarding agency or its successor Federal awarding agency.The Federal
awarding agency shall observe one or more of the following disposition instructions.
(1)The recipient may be permitted to retain title without further obligation to the Federal Government after it
compensates the Federal Government for that percentage of the current fair market value of the property
attributable to the Federal participation in the project.
(2)The recipient may be directed to sell the property under guidelines provided by the Federal awarding agency
and pay the Federal Government for that percentage of the current fair market value of the property attributable
to the Federal participation in the project(after deducting actual and reasonable selling and fix-up expenses.if
any,from the sales proceeds).When the recipient is authorized or required to sell the property,proper sales
procedures shall be established that provide for competition to the extent practicable and result in the highest
possible return.
•
(3)The recipient may be directed to transfer title to the property to the Federal Government or to an eligible third
party provided that.in such cases,the recipient shall be entitled to compensation for its attributable percentage
of the current fair market value of the property.
_.33 Federally-owned and exempt property. .
(a)Federally-owned property.
(1)Title to federally-owned property remains vested in the Federal Government.Recipients shall submit annually
an inventory listing of federally-owned property in their custody to the Federal awarding agency.Upon
completion of the award or when the property is no longer needed,the recipient shall report the property to the
Federal awarding agency for further Federal agency utilization.
(2)If the Federal awarding agency has no further need for the property,it shall be declared excess and reported
to the General Services Administration,unless the Federal awarding agency has statutory authority to dispose of
the property by alternative methods(e.g..the authority provided by the Federal Technology Transfer Act(15
U.S.C.3710(I))to donate research equipment to educational and non-profit organizations in accordance with.
E.O.12821,"Improving Mathematics and Science Education in Support of the National Education Goals")
Appropriate instructions shall be issued to the recipient by the Federal awarding agency.
(b)Exempt property.When statutory authority exists,the Federal awarding agency has the option to vest title to
property acquired with Federal funds in the recipient without further obligation to the Federal Government and under
conditions the Federal awarding agency considers appropriate.Such property is"exempt property."Should a Federal
awarding agency not establish conditions,title to exempt property upon acquisition shall vest in the recipient without
further obligation to the Federal Government.
http://www.whitehouse.goy/omb/circulars_al 10/ 7/16/2012
al Government whose cost was charged to a project
supported by a Federal award.Federal awarding agencies shall require recipients to observe these standards under
http://www.whitehouse.gov/omb/circulars_a 110/ 7/16/2012
for Reimbursement for Construction Programs."
http://www.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
establishing fund availability.
.21 Standards for financial management systems.
(a)Federal awarding agencies shall require recipients to relate financial data to performance data and develop unit
cost information whenever practical.
(b)Recipients'financial management systems shall provide for the following.
(1)Accurate,current and complete disclosure of the financial results of each federally-sponsored project or
program in accordance with the reporting requirements set forth in Section_.52.If a Federal awarding agency
requires reporting on an accrual basis from a recipient that maintains its records on other than an accrual basis,
the recipient shall not be required to establish an accrual accounting system.These recipients may develop such
accrual data for its reports on the basis of an analysis of the documentation on hand.
http://www.whitehouse.gov/omb/circulars_a 110/ 7/16/2012
UD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
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1
_.34 Equipment.
(a)Title to equipment acquired by a recipient with Federal funds shall vest in the recipient,subject to conditions of this
section.
(b)The recipient shall not use equipment acquired with Federal funds to provide services to non-Federal outside
organizations for a fee that is less than private companies charge for equivalent services,unless specifically
authorized by Federal statute,for as long as the Federal Government retains an interest in the equipment.
•
(c)The recipient shall use the equipment in the project or program for which it was acquired as long as needed,
whether or not the project or program continues to be supported by Federal funds and shall not encumber the property
without approval of the Federal awarding agency.When no longer needed for the original project or program,the
recipient shall use the equipment in connection with its other federally-sponsored activities,in the following order of
priority:(i)Activities sponsored by the Federal awarding agency which funded the original project,then(ii)activities
sponsored by'other Federal awarding agencies.
(d)During the time that equipment is used on the project or program for which it was acquired,the recipient shall make
it available for use on other projects or programs it such other use will not interfere with the work on the project or
program for which the equipment was originally acquired.First preference for such other use shall be given to other
projects or programs sponsored by the Federal awarding agency that financed the equipment;second preference shall
he given to projects or programs sponsored by other Federal awarding agencies.If the equipment is owned by the
Federal Government,use on other activities not sponsored by the Federal Government shall be permissible if •
authorized by the Federal awarding agency.User charges shall be treated as program income.
(e)When acquiring replacement equipment.the recipient may use the equipment to be replaced as trade-in or sell the
equipment and use the proceeds to offset the costs of the replacement equipment subject to the approval of the
Federal awarding agency.
(f)The recipient's property management standards for equipment acquired with Federal funds and federally-owned
equipment shall include all of the following.
•
(1)Equipment records shall be maintained accurately and shall include the following information.
(i)A description of the equipment.
(ii)Manufacturers serial number,model number,Federal stock number,national stock number,or other
identification number.
•
(iii)Source of the equipment.including the award number.
(iv)Whether title vests in the recipient or the Federal Government.
(v)Acquisition date(or date received,if the equipment was furnished by the Federal Government)and
cost.
(vi)Information from which one can calculate the percentage of Federal participation in the cost of the
equipment(not applicable to equipment furnished by the Federal Government).
http://www.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
Federal Government.Recipients shall submit annually
an inventory listing of federally-owned property in their custody to the Federal awarding agency.Upon
completion of the award or when the property is no longer needed,the recipient shall report the property to the
Federal awarding agency for further Federal agency utilization.
(2)If the Federal awarding agency has no further need for the property,it shall be declared excess and reported
to the General Services Administration,unless the Federal awarding agency has statutory authority to dispose of
the property by alternative methods(e.g..the authority provided by the Federal Technology Transfer Act(15
U.S.C.3710(I))to donate research equipment to educational and non-profit organizations in accordance with.
E.O.12821,"Improving Mathematics and Science Education in Support of the National Education Goals")
Appropriate instructions shall be issued to the recipient by the Federal awarding agency.
(b)Exempt property.When statutory authority exists,the Federal awarding agency has the option to vest title to
property acquired with Federal funds in the recipient without further obligation to the Federal Government and under
conditions the Federal awarding agency considers appropriate.Such property is"exempt property."Should a Federal
awarding agency not establish conditions,title to exempt property upon acquisition shall vest in the recipient without
further obligation to the Federal Government.
http://www.whitehouse.goy/omb/circulars_al 10/ 7/16/2012
al Government whose cost was charged to a project
supported by a Federal award.Federal awarding agencies shall require recipients to observe these standards under
http://www.whitehouse.gov/omb/circulars_a 110/ 7/16/2012
for Reimbursement for Construction Programs."
http://www.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
establishing fund availability.
.21 Standards for financial management systems.
(a)Federal awarding agencies shall require recipients to relate financial data to performance data and develop unit
cost information whenever practical.
(b)Recipients'financial management systems shall provide for the following.
(1)Accurate,current and complete disclosure of the financial results of each federally-sponsored project or
program in accordance with the reporting requirements set forth in Section_.52.If a Federal awarding agency
requires reporting on an accrual basis from a recipient that maintains its records on other than an accrual basis,
the recipient shall not be required to establish an accrual accounting system.These recipients may develop such
accrual data for its reports on the basis of an analysis of the documentation on hand.
http://www.whitehouse.gov/omb/circulars_a 110/ 7/16/2012
UD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
(vii)Location and condition of the equipment and the date the information was reported.
(viii)Unit acquisition cost.
(ix)Ultimate disposition data,including date of disposal and sales price or the method used to determine
current fair market value where a recipient compensates the Federal awarding agency for its share.
(2)Equipment owned by the Federal Government shall be identified to indicate Federal ownership.
(3)A physical inventory of equipment shall be taken and the results reconciled with the equipment records at
least once every two years.Any differences between quantities determined by the physical inspection and those
shown in the accounting records shall be investigated to determine the causes of the difference.The recipient
• shall,in connection with the inventory,verify the existence,current utilization,and continued need for the
equipment.
(4)A control system shall be in effect to insure adequate safeguards to prevent loss,damage,or theft of the
equipment.Any loss,damage,or theft of equipment shall be investigated and fully documented:if the equipment
was owned by the Federal Government,the recipient shall promptly notify the Federal awarding agency.
(5)Adequate maintenance procedures shall be implemented to keep the equipment in good condition.
(6)Where the recipient is authorized or required to sell the equipment,proper sales procedures shall be
established which provide for competition to the extent practicable and result in the highest possible return.
(g)When the recipient no longer needs the equipment,the equipment may be used for other activities in accordance
with the following standards.For equipment with a current per unit fair market value of$5000 or more.the recipient
may retain the equipment for other uses provided that compensation is made to the original Federal awarding agency
or its successor.The amount of compensation shall be computed by applying the percentage of Federal participation
in the cost of the original project or program to the current fair market value of the equipment.If the recipient has no
need for the equipment,the recipient shall request disposition instructions from the Federal awarding agency.The
Federal awarding agency shall determine whether the equipment can be used to meet the agency's requirements.If
no requirement exists within that agency,the availability of the equipment shall be reported to the General Services
Administration by the Federal awarding agency to determine whether a requirement for the equipment exists in other
Federal agencies.The Federal awarding agency shall issue instructions to the recipient no later than 120 calendar
days after the recipient's request and the following procedures shall govern. •
(1)If so instructed or if disposition instructions are not issued within 120 calendar days after the recipient's
request,the recipient shall sell the equipment and reimburse the Federal awarding agency an amount computed
by applying to the sales proceeds the percentage of Federal participation in the cost of the original project or
program.However,the recipient shall be permitted to deduct and retain from the Federal share$500 or ten
percent of the proceeds,whichever is less,for the recipient's selling and handling expenses.
(2)If the recipient is instructed to ship the equipment elsewhere,the recipient shall be reimbursed by the Federal
Government by an amount which is computed by applying the percentage of the recipient's participation in the
• cost of the original project or program to the current fair market value of the equipment,plus any reasonable
shipping or interim storage costs incurred.
(3)If the recipient is instructed to otherwise dispose of the equipment,the recipient shall be reimbursed by the
Federal awarding agency for such costs incurred in its disposition.
•
http://www.whitehouse.gov/omb/circulars_a110/ 7/16/2012
e with.
E.O.12821,"Improving Mathematics and Science Education in Support of the National Education Goals")
Appropriate instructions shall be issued to the recipient by the Federal awarding agency.
(b)Exempt property.When statutory authority exists,the Federal awarding agency has the option to vest title to
property acquired with Federal funds in the recipient without further obligation to the Federal Government and under
conditions the Federal awarding agency considers appropriate.Such property is"exempt property."Should a Federal
awarding agency not establish conditions,title to exempt property upon acquisition shall vest in the recipient without
further obligation to the Federal Government.
http://www.whitehouse.goy/omb/circulars_al 10/ 7/16/2012
al Government whose cost was charged to a project
supported by a Federal award.Federal awarding agencies shall require recipients to observe these standards under
http://www.whitehouse.gov/omb/circulars_a 110/ 7/16/2012
for Reimbursement for Construction Programs."
http://www.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
establishing fund availability.
.21 Standards for financial management systems.
(a)Federal awarding agencies shall require recipients to relate financial data to performance data and develop unit
cost information whenever practical.
(b)Recipients'financial management systems shall provide for the following.
(1)Accurate,current and complete disclosure of the financial results of each federally-sponsored project or
program in accordance with the reporting requirements set forth in Section_.52.If a Federal awarding agency
requires reporting on an accrual basis from a recipient that maintains its records on other than an accrual basis,
the recipient shall not be required to establish an accrual accounting system.These recipients may develop such
accrual data for its reports on the basis of an analysis of the documentation on hand.
http://www.whitehouse.gov/omb/circulars_a 110/ 7/16/2012
UD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
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•
(4)The Federal awarding agency may reserve the right to transfer the title to the Federal Government or to a
third party named by the Federal Government when such third party is otherwise eligible under existing statutes.
Such transfer shall be subject to the following standards.
(i)The equipment shall be appropriately identified in the award or otherwise made known to the recipient in
writing.
(ii)The Federal awarding agency shall issue disposition instructions within 120 calendar days after receipt
of a final inventory.The final inventory shall list all equipment acquired with grant funds and federally-
owned equipment.If the Federal awarding agency fails to issue disposition instructions within the 120
•
calendar day period,the recipient shall apply the standards of this section,as appropriate.
(iii)When the Federal awarding agency exercises its right to lake title,the equipment shall be subject to the
provisions for federally-owned equipment.
_.35 Supplies and other expendable property.
(a)Title to supplies and other expendable property shall vest in the recipient upon acquisition.If there is a residual
inventory of unused supplies exceeding$5000 in total aggregate value upon termination or completion of the project or
program and the supplies are not needed for any other federally-sponsored project or program,the recipient shall
retain the supplies for use on non-Federal sponsored activities or sell them,but shall,in either case,compensate the
Federal Government for its share.The amount of compensation shall be computed in the same manner as for
equipment.
(b)The recipient shall not use supplies acquired with Federal funds to provide services to non-Federal outside
organizations for a fee that is less than private companies charge for equivalent services.unless specifically
authorized by Federal statute as long as the Federal Government retains an interest in the supplies.
36 Intangible property.
(a)The recipient may copyright any work that is subject to copyright and was developed,or for which ownership was
purchased,under an award.The Federal awarding agency(ies)reserve a royalty-free,nonexclusive and irrevocable
right to reproduce,publish.or otherwise use the work for Federal purposes,and to authorize others to do so.
(b)Recipients are subject to applicable regulations governing patents and inventions,including government-wide
regulations issued by the Department of Commerce at 37 CFR part 401,"Rights to Inventions Made by Nonprofit
Organizations and Small Business Firms Under Government Grants,Contracts and Cooperative Agreements."
(c)The Federal Government has the right to:
(1)obtain,reproduce,publish or otherwise use the data first produced under an award;and
(2)authorize others to receive,reproduce,publish,or otherwise use such data for Federal purposes.
(d)(1)In addition,in response to a Freedom of Information Act(FOIA)request for research data relating to published
•
research findings produced under an award that were used by the Federal Government in developing an agency
action that has the force and effect of law,the Federal awarding agency shall request,and the recipient shall provide,
within a reasonable time,the research data so that they can be made available to the public through the procedures
established under the FOIA.If the Federal awarding agency obtains the research data solely in response to a FOIA
request,the agency may charge the requester a reasonable fee equaling the full incremental cost of obtaining the
research data.This fee should reflect costs incurred by the agency,the recipient,and applicable subrecipients.This
fee is in addition to any fees the agency may assess under the FOIA(5 U.S.C.552(a)(4)(A)).
http://wwvv.whitehouse.gov/omb/circulars_.al 1 0/ 7/16/2012
21,"Improving Mathematics and Science Education in Support of the National Education Goals")
Appropriate instructions shall be issued to the recipient by the Federal awarding agency.
(b)Exempt property.When statutory authority exists,the Federal awarding agency has the option to vest title to
property acquired with Federal funds in the recipient without further obligation to the Federal Government and under
conditions the Federal awarding agency considers appropriate.Such property is"exempt property."Should a Federal
awarding agency not establish conditions,title to exempt property upon acquisition shall vest in the recipient without
further obligation to the Federal Government.
http://www.whitehouse.goy/omb/circulars_al 10/ 7/16/2012
al Government whose cost was charged to a project
supported by a Federal award.Federal awarding agencies shall require recipients to observe these standards under
http://www.whitehouse.gov/omb/circulars_a 110/ 7/16/2012
for Reimbursement for Construction Programs."
http://www.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
establishing fund availability.
.21 Standards for financial management systems.
(a)Federal awarding agencies shall require recipients to relate financial data to performance data and develop unit
cost information whenever practical.
(b)Recipients'financial management systems shall provide for the following.
(1)Accurate,current and complete disclosure of the financial results of each federally-sponsored project or
program in accordance with the reporting requirements set forth in Section_.52.If a Federal awarding agency
requires reporting on an accrual basis from a recipient that maintains its records on other than an accrual basis,
the recipient shall not be required to establish an accrual accounting system.These recipients may develop such
accrual data for its reports on the basis of an analysis of the documentation on hand.
http://www.whitehouse.gov/omb/circulars_a 110/ 7/16/2012
UD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
(2)The following definitions apply for purposes of paragraph(d)of this section:
(i)Research data is defined as the recorded factual material commonly accepted in the scientific
community as necessary to validate research findings,but not any of the following:preliminary analyses,
drafts of scientific papers,plans for future research,peer reviews,or communications with colleagues.This
"recorded"material excludes physical objects(e.g..laboratory samples).Research data also do not
include:
(A)Trade secrets,commercial information,materials necessary to be held confidential by a
researcher until they are published,or similar information which is protected under law;and
(B)Personnel and medical information and similar information the disclosure of which would
constitute a clearly unwarranted invasion of personal privacy,such as information that could be used
to identify a particular person in a research study.
(ii)Published is defined as either when:
(A)Research findings are published in a peer-reviewed scientific or technical journal;or
(B)A Federal agency publicly and officially cites the research findings in support of an agency action
that has the force and effect of law.
(iii)Used by the Federal Government in developing an agency action that has the force and effect of law is
defined as when an agency publicly and officially cites the research findings in support of an agency action
that has the force and effect of law.
(e)Title to intangible property and debt instruments acquired under an award or subaward vests upon acquisition in
the recipient.The recipient shall use that property for the originally-authorized purpose,and the recipient shall not
encumber the property without approval of the Federal awarding agency.When no longer needed for the originally
authorized purpose,disposition of the intangible property shall occur in accordance with the provisions of paragraph
—34(g).
_.37 Property trust relationship.Real property,equipment,intangible property and debt instruments that are
acquired or improved with Federal funds shall be held in trust by the recipient as trustee for the beneficiaries of the
project or program under which the property was acquired or improved.Agencies may require recipients to record
liens or other appropriate notices of record to indicate that personal or real property has been acquired or improved •
with Federal funds and that use and disposition conditions apply to the property.
Procurement Standards
_.40 Purpose of procurement standards.Sections_.41 through_.48 set forth standards for use by recipients in
establishing procedures for the procurement of supplies and other expendable property,equipment,real property and
other services with Federal funds.These standards are furnished to ensure that such materials and services are
obtained in an effective manner and in compliance with the provisions of applicable Federal statutes and executive •
orders.No additional procurement standards or requirements shall be imposed by the Federal awarding agencies
upon recipients,unless specifically required by Federal statute or executive order or approved by OMB.
_.41 Recipient responsibilities.The standards contained in this section do not relieve the recipient of the contractual
responsibilities arising under its contract(s).The recipient is the responsible authority,without recourse to the Federal
awarding agency,regarding the settlement and satisfaction of all contractual and administrative issues arising out of
procurements entered into in support of an award or other agreement.This includes disputes.claims,protests of
award,source evaluation or other matters of a contractual nature.Matters concerning violation of statute are to he
referred to such Federal.State or,local authority as may have proper jurisdiction.
_.42 Codes of conduct.The recipient shall maintain written standards of conduct governing the performance of its
employees engaged in the award and administration of contracts.No employee,officer,or agent shall participate in
the selection,award,or administration of a contract supported by Federal funds if a real or apparent conflict of interest
would be involved.Such a conflict would arise when the employee,officer,or agent,any member of his or her
immediate family,his or her partner,or an organization which employs or is about to employ any of the parties
indicated herein,has a financial or other interest in the firm selected for an award.The officers,employees,and agents
.of the recipient shall neither solicit nor accept gratuities,favors,or anything of monetary value from contractors,or
parties to subagreements.However,recipients may set standards for situations in which the financial interest is not
http://www.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
warding agencies shall require recipients to observe these standards under
http://www.whitehouse.gov/omb/circulars_a 110/ 7/16/2012
for Reimbursement for Construction Programs."
http://www.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
establishing fund availability.
.21 Standards for financial management systems.
(a)Federal awarding agencies shall require recipients to relate financial data to performance data and develop unit
cost information whenever practical.
(b)Recipients'financial management systems shall provide for the following.
(1)Accurate,current and complete disclosure of the financial results of each federally-sponsored project or
program in accordance with the reporting requirements set forth in Section_.52.If a Federal awarding agency
requires reporting on an accrual basis from a recipient that maintains its records on other than an accrual basis,
the recipient shall not be required to establish an accrual accounting system.These recipients may develop such
accrual data for its reports on the basis of an analysis of the documentation on hand.
http://www.whitehouse.gov/omb/circulars_a 110/ 7/16/2012
UD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
substantial or the gift is an unsolicited item of nominal value.The standards of conduct shall provide for disciplinary
actions to be applied for violations of such standards by officers,employees,or agents of the recipient.
.43 Competition.All procurement transactions shall be conducted in a manner to provide,to the maximum extent
practical,open and free competition.The recipient shall be alert to organizational conflicts of interest as well as
noncompetitive practices among contractors that may restrict or eliminate competition or otherwise restrain trade.In
order to ensure objective contractor performance and eliminate unfair competitive advantage,contractors that develop
or draft specifications,requirements,statements of work,invitations for bids and/or requests for proposals shall be
excluded from competing for such procurements.Awards shall be made to the bidder or offeror whose bid or offer is
responsive to the solicitation and is most advantageous to the recipient.price,quality and other factors considered.
Solicitations shall clearly set forth all requirements that the bidder or offeror shall fulfill in order for the bid or offer to be
evaluated by the recipient.Any and all bids or offers may be rejected when it is in the recipient's interest to do so.
_.44 Procurement procedures.
(a)All recipients shall establish written procurement procedures.These procedures shall provide for,at a minimum,
that(1),(2)and(3)apply.
(1)Recipients avoid purchasing unnecessary items.
(2)Where appropriate,an analysis is made of lease and purchase alternatives to determine which would be the
most economical and practical procurement for the Federal Government.
(3)Solicitations for goods and services provide for all of the following.
(i)A clear and accurate description of the technical requirements for the material,product or service to be
procured.In competitive procurements.such a description shall not contain features which unduly restrict
competition.
(ii)Requirements which the bidder/offeror must fulfill and all other factors to be used in evaluating bids or
proposals.
(iii)A description,whenever practicable.of technical requirements in terms of functions to be performed or
performance required,including the range of acceptable characteristics or minimum acceptable standards.
(iv)The specific features of"brand name or equal"descriptions that bidders are required to meet when
such items are included in the solicitation.
(v)The acceptance,to the extent practicable and economically feasible,of products and services
dimensioned in the metric system of measurement.
(vi)Preference,to the extent practicable and economically feasible,for products and services that conserve
natural resources and protect the environment and are energy efficient.
(b)Positive efforts shall be made by recipients to utilize small businesses,minority-owned firms,and women's
business enterprises,whenever possible.Recipients of Federal awards shall take all of the following steps to further
this goal.
(1)Ensure that small businesses.minority-owned firms.and women's business enterprises are used to the fullest
extent practicable.
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e standards contained in this section do not relieve the recipient of the contractual
responsibilities arising under its contract(s).The recipient is the responsible authority,without recourse to the Federal
awarding agency,regarding the settlement and satisfaction of all contractual and administrative issues arising out of
procurements entered into in support of an award or other agreement.This includes disputes.claims,protests of
award,source evaluation or other matters of a contractual nature.Matters concerning violation of statute are to he
referred to such Federal.State or,local authority as may have proper jurisdiction.
_.42 Codes of conduct.The recipient shall maintain written standards of conduct governing the performance of its
employees engaged in the award and administration of contracts.No employee,officer,or agent shall participate in
the selection,award,or administration of a contract supported by Federal funds if a real or apparent conflict of interest
would be involved.Such a conflict would arise when the employee,officer,or agent,any member of his or her
immediate family,his or her partner,or an organization which employs or is about to employ any of the parties
indicated herein,has a financial or other interest in the firm selected for an award.The officers,employees,and agents
.of the recipient shall neither solicit nor accept gratuities,favors,or anything of monetary value from contractors,or
parties to subagreements.However,recipients may set standards for situations in which the financial interest is not
http://www.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
warding agencies shall require recipients to observe these standards under
http://www.whitehouse.gov/omb/circulars_a 110/ 7/16/2012
for Reimbursement for Construction Programs."
http://www.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
establishing fund availability.
.21 Standards for financial management systems.
(a)Federal awarding agencies shall require recipients to relate financial data to performance data and develop unit
cost information whenever practical.
(b)Recipients'financial management systems shall provide for the following.
(1)Accurate,current and complete disclosure of the financial results of each federally-sponsored project or
program in accordance with the reporting requirements set forth in Section_.52.If a Federal awarding agency
requires reporting on an accrual basis from a recipient that maintains its records on other than an accrual basis,
the recipient shall not be required to establish an accrual accounting system.These recipients may develop such
accrual data for its reports on the basis of an analysis of the documentation on hand.
http://www.whitehouse.gov/omb/circulars_a 110/ 7/16/2012
UD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
•
(2)Make information on forthcoming opportunities available and arrange time frames for purchases and
contracts to encourage and facilitate participation by small businesses,minority-owned firms,and women's
business enterprises.
(3)Consider in the contract process whether firms competing for larger contracts intend to subcontract with small
businesses,minority-owned firms.and women's business enterprises.
(4)Encourage contracting with consortiums of small businesses,minority-owned firms and women's business
enterprises when a contract is too large for one of these firms to handle individually.
(5)Use the services and assistance,as appropriate,of such organizations as the Small Business Administration
and the Department of Commerce's Minority Business Development Agency in the solicitation and utilization of
small businesses,minority-owned firms and women's business enterprises.
(c)The type of procuring instruments used(e.g..fixed price contracts,cost reimbursable contracts,purchase orders,
and incentive contracts)shall be determined by the recipient but shall be appropriate for the particular procurement
and for promoting the best interest of the program or project involved.The"cost-plus-a-percentage-of-cost"or
"percentage of construction cost"methods of contracting shall not be used.
(d)Contracts shall be made only with responsible contractors who possess the potential ability to perform successfully
under the terms and conditions of the proposed procurement.Consideration shall be given to such matters as
contractor integrity,record of past performance,financial and technical resources or accessibility to other necessary
resources.In certain circumstances,contracts with certain parties are restricted by agencies'implementation of E.O.s
12549 and 12689,"Debarment and Suspension."
(e)Recipients shall.on request.make available for the Federal awarding agency,pre-award review and procurement
documents.such as request for proposals or invitations for bids,independent cost estimates,etc..when any of the
following conditions apply.
(1)A recipient's procurement procedures or operation fails to comply with the procurement standards in the
Federal awarding agency's implementation of this Circular.
(2)The procurement is expected to exceed the small purchase threshold fixed at 41 U.S.C.403(11)(currently
$25,000)and is to be awarded without competition or only one bid or offer is received in response to a
solicitation.
•
(3)The procurement,which is expected to exceed the small purchase threshold,specifies a"brand name"
product.
(4)The proposed award over the small purchase threshold is to be awarded to other than the apparent low
bidder under a sealed bid procurement.
(5)A proposed contract modification changes the scope of a contract or increases the contract amount by more
than the amount of the small purchase threshold.
.45 Cost and price analysis.Some form of cost or price analysis shall be made and documented in the
procurement files in connection with every procurement action.Price analysis may be accomplished in various ways,
including the comparison of price quotations submitted,market prices and similar indicia,together with discounts.Cost
analysis is the review and evaluation of each element of cost to determine reasonableness,allocabitity and
allowability.
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ractual and administrative issues arising out of
procurements entered into in support of an award or other agreement.This includes disputes.claims,protests of
award,source evaluation or other matters of a contractual nature.Matters concerning violation of statute are to he
referred to such Federal.State or,local authority as may have proper jurisdiction.
_.42 Codes of conduct.The recipient shall maintain written standards of conduct governing the performance of its
employees engaged in the award and administration of contracts.No employee,officer,or agent shall participate in
the selection,award,or administration of a contract supported by Federal funds if a real or apparent conflict of interest
would be involved.Such a conflict would arise when the employee,officer,or agent,any member of his or her
immediate family,his or her partner,or an organization which employs or is about to employ any of the parties
indicated herein,has a financial or other interest in the firm selected for an award.The officers,employees,and agents
.of the recipient shall neither solicit nor accept gratuities,favors,or anything of monetary value from contractors,or
parties to subagreements.However,recipients may set standards for situations in which the financial interest is not
http://www.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
warding agencies shall require recipients to observe these standards under
http://www.whitehouse.gov/omb/circulars_a 110/ 7/16/2012
for Reimbursement for Construction Programs."
http://www.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
establishing fund availability.
.21 Standards for financial management systems.
(a)Federal awarding agencies shall require recipients to relate financial data to performance data and develop unit
cost information whenever practical.
(b)Recipients'financial management systems shall provide for the following.
(1)Accurate,current and complete disclosure of the financial results of each federally-sponsored project or
program in accordance with the reporting requirements set forth in Section_.52.If a Federal awarding agency
requires reporting on an accrual basis from a recipient that maintains its records on other than an accrual basis,
the recipient shall not be required to establish an accrual accounting system.These recipients may develop such
accrual data for its reports on the basis of an analysis of the documentation on hand.
http://www.whitehouse.gov/omb/circulars_a 110/ 7/16/2012
UD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
.46 Procurement records.Procurement records and files for purchases in excess of the small purchase threshold
shall include the following at a minimum:(a)basis for contractor selection,(b)justification for lack of competition when
competitive bids or offers are not obtained,and(c)basis for award cost or price.
___.47 Contract administration.A system for contract administration shall be maintained to ensure contractor
conformance with the terms,conditions and specifications of the contract and to ensure adequate and timely follow up
of all purchases.Recipients shall evaluate contractor performance and document,as appropriate,whether contractors
have met the terms.conditions and specifications of the contract.
_.48 Contract provisions.The recipient shall include,in addition to provisions to define a sound and complete •
agreement,the following provisions in all contracts.The following provisions shall also be applied to subcontracts.
(a)Contracts in excess of the small purchase threshold shall contain contractual provisions or conditions that allow for
administrative,contractual,or legal remedies in instances in which a contractor violates or breaches the contract
terms,and provide for such remedial actions as may be appropriate.
•
(b)All contracts in excess of the small purchase threshold shall contain suitable provisions for termination by the
recipient,including the manner by which termination shall be effected and the basis for settlement.In addition,such
contracts shall describe conditions under which the contract may be terminated for default as well as conditions where
the contract may be terminated because of circumstances beyond the control of the contractor.
(c)Except as otherwise required by statute,an award that requires the contracting(or subcontracting)for construction
or facility improvements shall provide for the recipient to follow its own requirements relating to bid guarantees.
performance bonds,and payment bonds unless the construction contract or subcontract exceeds$100,000.For those
contracts or subcontracts exceeding$100,000,the Federal awarding agency may accept the bonding policy and
requirements of the recipient,provided the Federal awarding agency has made a determination that the Federal
Government's interest is adequately protected.If such a determination has not been made.the minimum requirements
shall be as follows.
(1)A bid guarantee from each bidder equivalent to five percent of the bid price.The"bid guarantee"shall consist
of a firm commitment such as a bid bond,certified check,or other negotiable instrument accompanying a bid as
assurance that the bidder shall,upon acceptance of his bid,execute such contractual documents as may be
required within the time specified.
(2)A performance bond on the part of the contractor for 100 percent of the contract price.A"performance bond"
is one executed in connection with a contract to secure fulfillment of all the contractor's obligations under such
contract.
(3)A payment bond on the part of the contractor for 100 percent of the contract price.A"payment bond"is one
executed in connection with a contract to assure payment as required by statute of all persons supplying labor
and material in the execution of the work provided for in the contract.
(4)Where bonds are required in the situations described herein,the bonds shall be obtained from companies
holding certificates of authority as acceptable sureties pursuant to 31 CFR part 223."Surety Companies Doing
Business with the United States."
(d)All negotiated contracts(except those for less than the small purchase threshold)awarded by recipients shall
include a provision to the effect that the recipient,the Federal awarding agency,the Comptroller General of the United
States,or any of their duly authorized representatives,shall have access to any books,documents.papers and
records of the contractor which are directly pertinent to a specific program for the purpose of making audits,
examinations,excerpts and transcriptions.
(e)All contracts,including small purchases,awarded by recipients and their contractors shall contain the procurement
provisions of Appendix A to this Circular,as applicable.
Reports and Records
_.50 Purpose of reports and records.Sections .51 through_.53 set forth the procedures for monitoring and
reporting on the recipient's financial and program performance and the necessary standard reporting forms.They also
set forth record retention requirements.
_.51 Monitoring and reporting program performance.
(a)Recipients are responsible for managing and monitoring each project,program,subaward.function or activity
supported by the award.Recipients shall monitor subawards to ensure subrecipients have met the audit requirements
as delineated in Section .26.
(b)The Federal awarding agency shall prescribe the frequency with which the performance reports shall be submitted.
Except as provided in paragraph_.51(f),performance reports shall not be required more frequently than quarterly
or.less frequently than annually.Annual reports shall be due 90 calendar days after the grant year;quarterly or semi-
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ding agencies shall require recipients to relate financial data to performance data and develop unit
cost information whenever practical.
(b)Recipients'financial management systems shall provide for the following.
(1)Accurate,current and complete disclosure of the financial results of each federally-sponsored project or
program in accordance with the reporting requirements set forth in Section_.52.If a Federal awarding agency
requires reporting on an accrual basis from a recipient that maintains its records on other than an accrual basis,
the recipient shall not be required to establish an accrual accounting system.These recipients may develop such
accrual data for its reports on the basis of an analysis of the documentation on hand.
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UD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
annual reports shall be due 30 days after the reporting period.The Federal awarding agency may require annual
reports before the anniversary dates of multiple year awards in lieu of these requirements.The final performance
reports are due 90 calendar days after the expiration or termination of the award.
(c)If inappropriate.a final technical or performance report shall not be required after completion of the project.
(d)When required,performance reports shall generally contain,for each award.brief information on each of the
following.
(1)A comparison of actual accomplishments with the goals and objectives established for the period,the findings
of the investigator,or both.Whenever appropriate and the output of programs or projects can be readily
quantified.such quantitative data should be related to cost data for computation of unit costs.
(2)Reasons why established goats were not met,if appropriate.
(3)Other pertinent information including,when appropriate,analysis and explanation of cost overruns or high
unit costs.
(e)Recipients shall not be required to submit more than the original and two copies of performance reports.
(f)Recipients shall immediately notify the Federal awarding agency of developments that have a significant impact on
the award-supported activities.Also,notification shall be given in the case of problems,delays,or adverse conditions
which materially impair the ability to meet the objectives of the award.This notification shall include a statement of the
action taken or contemplated,and any assistance needed to resolve the situation. . •
(g)Federal awarding agencies may make site visits,as needed.
(h)Federal awarding agencies shall comply with clearance requirements of 5 CFR part 1320 when requesting
performance data from recipients.
_.52 Financial reporting.
(a)The following forms or such other forms as may be approved by OMB are authorized for obtaining financial
information from recipients.
(1)SF-269 or SF-269A,Financial Status Report.
(i)Each Federal awarding agency shall require recipients to use the SF-269 or SF-269A to report the status
of funds for all nonconstruction projects or programs.A Federal awarding agency may,however,have the
option of not requiring the SF-269 or SF-269A when the SF-270,Request for Advance or Reimbursement,
or SF-272,Report of Federal Cash Transactions,is determined to provide adequate information to meet its
needs,except that a final SF-269 or SF-269A shall be required at the completion of the project when the
SF-270 is used only for advances.
(ii)The Federal awarding agency shall prescribe whether the report shall be on a cash or accrual basis.If
the Federal awarding agency requires accrual information and the recipient's accounting records are not
normally kept on the accrual basis,the recipient shall not be required to convert its accounting system.but
shall develop such accrual information through best estimates based on an analysis of the documentation
on hand.
(iii)The Federal awarding agency shall determine the frequency of the Financial Status Report for each
project or program,considering the size and complexity of the particular project or program.However.the
report shall not be required more frequently than quarterly or less frequently than annually.A final report
shall be required at the completion of the agreement.
(iv)The Federal awarding agency shall require recipients to submit the SF-269 or SF-269A(an original and
no more than two copies)no later than 30 days after the end of each specified reporting period for quarterly
and semi-annual reports,and 90 calendar days for annual and final reports.Extensions of reporting due
dates may be approved by the Federal awarding agency upon request of the recipient.
(2)SF-272,Report of Federal Cash Transactions.
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urpose of making audits,
examinations,excerpts and transcriptions.
(e)All contracts,including small purchases,awarded by recipients and their contractors shall contain the procurement
provisions of Appendix A to this Circular,as applicable.
Reports and Records
_.50 Purpose of reports and records.Sections .51 through_.53 set forth the procedures for monitoring and
reporting on the recipient's financial and program performance and the necessary standard reporting forms.They also
set forth record retention requirements.
_.51 Monitoring and reporting program performance.
(a)Recipients are responsible for managing and monitoring each project,program,subaward.function or activity
supported by the award.Recipients shall monitor subawards to ensure subrecipients have met the audit requirements
as delineated in Section .26.
(b)The Federal awarding agency shall prescribe the frequency with which the performance reports shall be submitted.
Except as provided in paragraph_.51(f),performance reports shall not be required more frequently than quarterly
or.less frequently than annually.Annual reports shall be due 90 calendar days after the grant year;quarterly or semi-
http://www.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
ding agencies shall require recipients to relate financial data to performance data and develop unit
cost information whenever practical.
(b)Recipients'financial management systems shall provide for the following.
(1)Accurate,current and complete disclosure of the financial results of each federally-sponsored project or
program in accordance with the reporting requirements set forth in Section_.52.If a Federal awarding agency
requires reporting on an accrual basis from a recipient that maintains its records on other than an accrual basis,
the recipient shall not be required to establish an accrual accounting system.These recipients may develop such
accrual data for its reports on the basis of an analysis of the documentation on hand.
http://www.whitehouse.gov/omb/circulars_a 110/ 7/16/2012
UD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
•
•
(i)When funds are advanced to recipients the Federal awarding agency shall require each recipient to
submit the SF-272 and,when necessary,its continuation sheet,SF-272a.The Federal awarding agency
shall use this report to monitor cash advanced to recipients and to obtain disbursement information for
each agreement with the recipients.
(ii)Federal awarding agencies may require forecasts of Federal cash requirements in the"Remarks"
section of the report.
(iii)When practical and deemed necessary,Federal awarding agencies may require recipients to report in
the"Remarks"section the amount of cash advances received in excess of three days.Recipients shall
provide short narrative explanations of actions taken to reduce the excess balances.
(iv)Recipients shall be required to submit not more than the original and two copies of the SF-272 15
• calendar days following the end of each quarter.The Federal awarding agencies may require a monthly
report from those recipients receiving advances totaling$1 million or more per year.
(v)Federal awarding agencies may waive the requirement for submission of the SF-272 for any one of the
following reasons:(1)When monthly advances do not exceed$25.000 per recipient,provided that such
advances are monitored through other forms contained in this section;(2)If,in the Federal awarding
•
agency's opinion,the recipient's accounting controls are adequate to minimize excessive Federal
advances;or.(3)When the electronic payment mechanisms provide adequate data.
(b)When the Federal awarding agency needs additional information or more frequent reports,the following shall be
observed.
(1)When additional information is needed to comply with legislative requirements,Federal awarding agencies
shall issue instructions to require recipients to submit such information under the"Remarks"section of the
reports.
(2)When a Federal awarding agency determines that a recipient's accounting system does not meet the•
standards in Section_21,additional pertinent information to further monitor awards may be obtained upon
written notice to the recipient until such time as the system is brought up to standard.The Federal awarding
agency,in obtaining this information,shall comply with report clearance requirements of 5 CFR part 1320.
(3)Federal awarding agencies are encouraged to shade out any line item on any report if not necessary.
(4)Federal awarding agencies may accept the identical information from the recipients in machine readable
format or computer printouts or electronic outputs in lieu of prescribed formats.
(5)Federal awarding agencies may provide computer or electronic outputs to recipients when such expedites or
contributes to the accuracy of reporting.
.53 Retention and access requirements for records.
(a)This section sets forth requirements for record retention and access to records for awards to recipients.Federal
r awarding agencies shall not impose any other record retention or access requirements upon recipients.
(b)Financial records,supporting documents,statistical records.and all Other records pertinent to an award shall be
retained for a period of three years from the date of submission of the final expenditure report or.for awards that are
renewed quarterly or annually,from the date of the submission of the quarterly or annual financial report,as authorized
by the Federal awarding agency.The only exceptions are the following.
(1)If any litigation,claim.or audit is started before the expiration of the 3-year period,the records shall be
retained until all litigation,claims or audit findings involving the records have been resolved and final action
taken.
(2)Records for real property and equipment acquired with Federal funds shall be retained for 3 years after final
disposition.
(3)When records are transferred to or maintained by the Federal awarding agency,the 3-year retention
requirement is not applicable to the recipient.
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All contracts,including small purchases,awarded by recipients and their contractors shall contain the procurement
provisions of Appendix A to this Circular,as applicable.
Reports and Records
_.50 Purpose of reports and records.Sections .51 through_.53 set forth the procedures for monitoring and
reporting on the recipient's financial and program performance and the necessary standard reporting forms.They also
set forth record retention requirements.
_.51 Monitoring and reporting program performance.
(a)Recipients are responsible for managing and monitoring each project,program,subaward.function or activity
supported by the award.Recipients shall monitor subawards to ensure subrecipients have met the audit requirements
as delineated in Section .26.
(b)The Federal awarding agency shall prescribe the frequency with which the performance reports shall be submitted.
Except as provided in paragraph_.51(f),performance reports shall not be required more frequently than quarterly
or.less frequently than annually.Annual reports shall be due 90 calendar days after the grant year;quarterly or semi-
http://www.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
ding agencies shall require recipients to relate financial data to performance data and develop unit
cost information whenever practical.
(b)Recipients'financial management systems shall provide for the following.
(1)Accurate,current and complete disclosure of the financial results of each federally-sponsored project or
program in accordance with the reporting requirements set forth in Section_.52.If a Federal awarding agency
requires reporting on an accrual basis from a recipient that maintains its records on other than an accrual basis,
the recipient shall not be required to establish an accrual accounting system.These recipients may develop such
accrual data for its reports on the basis of an analysis of the documentation on hand.
http://www.whitehouse.gov/omb/circulars_a 110/ 7/16/2012
UD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
(4)Indirect cost rate proposals,cost allocations plans,etc.as specified in paragraph_.53(g).
(c)Copies of original records may be substituted for the original records if authorized by the Federal awarding agency.
(d)The Federal awarding agency shall request transfer of certain records to its custody from recipients when it
determines that the records possess long term retention value.However,in order to avoid duplicate recordkeeping.a
Federal awarding agency may make arrangements for recipients to retain any records that are continuously needed
for joint use.
(e)The Federal awarding agency,the Inspector General,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 recipients that are pertinent to the awards,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.
(t)Unless required by statute,no Federal awarding agency shall place restrictions on recipients that limit public access
to the records of recipients that are pertinent to an award,except when the Federal awarding agency can demonstrate
that such records shall be kept confidential and would have been exempted from disclosure pursuant to the Freedom
of Information Act(5 U.S.C.552)if the records had belonged to the Federal awarding agency.
(g)Indirect cost rate proposals,cost allocations plans,etc.Paragraphs(g)(1)and(g)(2)apply to the following types of
documents,and their supporting records:indirect cost rate computations or proposals,cost allocation plans.and any
similar accounting computations of the rate at which a particular group of costs is chargeable(such as computer usage
chargeback rates or composite fringe benefit rates),
(1)If submitted for negotiation.If the recipient submits to the Federal awarding agency or the subrecipient
submits to the recipient the proposal,plan,or other computation to form the basis for negotiation of the rate,then
the 3-year retention period for its supporting records starts on the date of such submission.
(2)If not submitted for negotiation.If the recipient is not required to submit to the Federal awarding agency or the
subrecipient is not required to submit to the recipient the proposal,plan,or other computation for negotiation
purposes,then the 3-year retention period for the proposal,plan,or other computation and its supporting records
starts at the end of the fiscal year(or other accounting period)covered by the proposal,plan,or other
computation.
•
Termination and Enforcement
.60 Purpose of termination and enforcement.Sections .61 and_.62 set forth uniform suspension,
termination and enforcement procedures.
.61 Termination.
•
(a)Awards may be terminated in whole or in part only if(1).(2)or(3)apply.
•
(1)By the Federal awarding agency.if a recipient materially fails to comply with the terms and conditions of an
award.
(2)By the Federal awarding agency with the consent of the recipient,in which case the two parties shall agree
upon the termination conditions,including the effective date and,in the case of partial termination,the portion to
. be terminated.
(3)By the recipient upon sending to the Federal awarding agency written notification setting forth the reasons for
such termination,the effective date.and,in the case of partial termination,the portion to be terminated.
However,if the Federal awarding agency determines in the case of partial termination that the reduced or
modified portion of the grant will not accomplish the purposes for which the grant was made,it may terminate the
grant in its entirety under either paragraphs(a)(1)or(2).
(b)If costs are allowed under an award,the responsibilities of the recipient referred to in paragraph_.71(a),
including those for property management as applicable,shall be considered in the termination of the award,and
provision shall be made for continuing responsibilities of the recipient after termination,as appropriate.
.62 Enforcement.
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d reporting program performance.
(a)Recipients are responsible for managing and monitoring each project,program,subaward.function or activity
supported by the award.Recipients shall monitor subawards to ensure subrecipients have met the audit requirements
as delineated in Section .26.
(b)The Federal awarding agency shall prescribe the frequency with which the performance reports shall be submitted.
Except as provided in paragraph_.51(f),performance reports shall not be required more frequently than quarterly
or.less frequently than annually.Annual reports shall be due 90 calendar days after the grant year;quarterly or semi-
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ding agencies shall require recipients to relate financial data to performance data and develop unit
cost information whenever practical.
(b)Recipients'financial management systems shall provide for the following.
(1)Accurate,current and complete disclosure of the financial results of each federally-sponsored project or
program in accordance with the reporting requirements set forth in Section_.52.If a Federal awarding agency
requires reporting on an accrual basis from a recipient that maintains its records on other than an accrual basis,
the recipient shall not be required to establish an accrual accounting system.These recipients may develop such
accrual data for its reports on the basis of an analysis of the documentation on hand.
http://www.whitehouse.gov/omb/circulars_a 110/ 7/16/2012
UD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
/..-,11\\iV 1.,ll\ I 1-11 V 1W V 1 VLL 11/ 1///-1 /1.01 U1111,1 /11111.1111V11 //J V/// 11111J ♦♦1111, 1iVN... 11151. L/ V♦ L/
•
•
(a)Remedies for noncompliance.If a recipient materially tails to comply with the terms and conditions of an award,
whether stated in a Federal statute,regulation,assurance,application.or notice of award,the Federal awarding
agency may,in addition to imposing any of the special conditions outlined in Section .14.take one or more of the
following actions,as appropriate in the circumstances.
(1)Temporarily withhold cash payments pending correction of the deficiency by the recipient or more severe
enforcement action by the Federal awarding agency.
(2)Disallow(that is.deny both use of funds and any applicable matching credit for)all or part of the cost of the
activity or action not in compliance.
(3)Wholly or partly suspend or terminate the current award.
(4)Withhold further awards for the project or program.
(5)Take other remedies that may be legally available.
•
(b)Hearings and appeals.In taking an enforcement action,the awarding agency shall provide the recipient an
opportunity for hearing,appeal,or other administrative proceeding to which the recipient is entitled under any statute
or regulation applicable to the action involved.
(c)Effects of suspension and termination.Costs of a recipient resulting from obligations incurred by the recipient
during a suspension or after termination of an award are not allowable unless the awarding agency expressly
authorizes them in the notice of suspension or termination or subsequently.Other recipient costs during suspension or
after termination which are necessary and not reasonably avoidable are allowable if(1)and(2)apply.
(1)The costs result from obligations which were properly incurred by the recipient before the effective date of
suspension or termination.are not in anticipation of it,and in the case of a termination,.are noncancellable.
(2)The costs would be allowable if the award were not suspended or expired normally at the end of the funding
period in which the termination takes effect.
(d)Relationship to debarment and suspension.The enforcement remedies identified in this section.including
suspension and termination,do.not preclude a recipient from being subject to debarment and suspension under E.O.s
12549 and 12689 and the Federal awarding agency implementing regulations(see Section .13).
SUBPART D-After-the-Award Requirements
_.70 Purpose.Sections_.71 through_.73 contain closeout procedures and other procedures for subsequent
disallowances and adjustments.
•
.71 Closeout procedures.
(a)Recipients shall submit,within 90 calendar days after the date of completion of the award.all financial,
performance,and other reports as required by the terms and conditionsof the award.The Federal awarding agency
may approve extensions when requested by the recipient.
(b)Unless the Federal awarding agency authorizes an extension,a recipient shall liquidate all obligations incurred
under the award not later than 90 calendar days after the funding period or the date of completion as specified in the
terms and conditions of the award or in agency implementing instructions.
(c)The Federal awarding agency shall make prompt payments to a recipient for allowable reimbursable costs under
the award being closed out.
(d)The recipient shall promptly refund any balances of unobligated cash that the Federal awarding agency has
advanced or paid and that is not authorized to be retained by the recipient for use in other projects.OMB Circular A-
129 governs unreturned amounts that become delinquent debts.
•
(e)When authorized by the terms and conditions of the award,the Federal awarding agency shall make a settlement
for any upward or downward adjustments to the Federal share of costs after closeout reports are received.
(f)The recipient shall account for any real and personal property acquired with Federal funds or received from the
Federal Government in accordance with Sections_.31 through._.37.
(g)In the event a final audit has not been performed prior to the closeout of an award,the Federal awarding agency
shall retain the right to recover an appropriate amount after fully considering the recommendations on disallowed costs
resulting from the final audit.
,72 Subsequent adjustments and continuing responsibilities.
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/circulars_a110/ • 7/16/2012
d reporting program performance.
(a)Recipients are responsible for managing and monitoring each project,program,subaward.function or activity
supported by the award.Recipients shall monitor subawards to ensure subrecipients have met the audit requirements
as delineated in Section .26.
(b)The Federal awarding agency shall prescribe the frequency with which the performance reports shall be submitted.
Except as provided in paragraph_.51(f),performance reports shall not be required more frequently than quarterly
or.less frequently than annually.Annual reports shall be due 90 calendar days after the grant year;quarterly or semi-
http://www.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
ding agencies shall require recipients to relate financial data to performance data and develop unit
cost information whenever practical.
(b)Recipients'financial management systems shall provide for the following.
(1)Accurate,current and complete disclosure of the financial results of each federally-sponsored project or
program in accordance with the reporting requirements set forth in Section_.52.If a Federal awarding agency
requires reporting on an accrual basis from a recipient that maintains its records on other than an accrual basis,
the recipient shall not be required to establish an accrual accounting system.These recipients may develop such
accrual data for its reports on the basis of an analysis of the documentation on hand.
http://www.whitehouse.gov/omb/circulars_a 110/ 7/16/2012
UD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
(a)The closeout of an award does not affect any of the following.
(1)The right of the Federal awarding agency to disallow costs and recover funds on the basis of a later audit or
other review.
•
(2)The obligation of the recipient to return any funds due as a result of later refunds,corrections,or other
transactions.
(3)Audit requirements in Section_.26.
(4)Property management requirements in Sections_.31 through_.37.
(5)Records retention as required in Section_.53.
(b)After closeout of an award.a relationship created tinder an award may be modified or ended in whole or in part
with the consent of the Federal awarding agency and the recipient,provided the responsibilities of the recipient •
referred to in paragraph_.73(a),including those for property management as applicable,are considered and
provisions made for continuing responsibilities of the recipient,as appropriate.
.73 Collection of amounts due.
(a)Any funds paid to a recipient in excess of the amount to which the recipient is finally determined to be entitled
under the terms and conditions of the award constitute a debt to the Federal Government.If not paid within a
reasonable period after the demand for payment,the Federal awarding agency may reduce the debt by(1),(2)or(3).
(1)Making an administrative offset against other requests for reimbursements.
(2)Withholding advance payments otherwise due to the recipient.
(3)Taking other action permitted by statute.
(b)Except as otherwise provided by law,the Federal awarding agency shall charge interest on an overdue debt in
accordance with 4 CFR Chapter II,"Federal Claims Collection Standards."
Appendix A
Contract Provisions •
All contracts,awarded by a recipient including small purchases,shall contain the following provisions as applicable:
1.Equal Employment Opportunity-All contracts shall contain a provision requiring compliance with E.O.11246,
"Equal Employment Opportunity,"as amended by E.O.11375,"Amending Executive Order 11246 Relating to Equal
Employment Opportunity,"and as supplemented by regulations at 41 CFR part 60,"Office of Federal Contract
Compliance Programs,Equal Employment Opportunity,Department of Labor."
2.Copeland"Anti-Kickback"Act(18 U.S.C.874 and 40 U.S.C.276c)-All contracts and subgrants in excess of
$2000 for construction or repair awarded by recipients and subrecipients shall include a provision for compliance with
the Copeland"Anti-Kickback"Act(18 U.S.C.874),as supplemented by Department of Labor regulations(29 CFR part
3."Contractors and Subcontractors on Public Building or Public Work Financed in Whole or in Part by Loans or Grants
from the United States").The Act provides that each contractor or subrecipient shall be prohibited from inducing.by
any means,any person employed in the construction,completion,or repair of public work,to give up any part of the
compensation to which he is otherwise entitled.The recipient shall report all suspected or reported violations to the
Federal awarding agency.
3.Davis-Bacon Act,as amended(40 U.S.C.276a to a-7)-When required by Federal program legislation,all
construction contracts awarded by the recipients and subrecipients of more than$2000 shall include a provision for
compliance with the Davis-Bacon Act(40 U.S.C.276a to a-7)and as supplemented by Department of Labor •
regulations(29 CFR part 5,"Labor Standards Provisions Applicable to Contracts Governing Federally Financed and
Assisted Construction").Under this Act,contractors shall be required to pay wages to laborers and mechanics at a rate
not Less than the minimum wages specified in a wage determination made by the Secretary of Labor.In addition, •
contractors shall be required to pay wages not less than once a week.The recipient shall place a copy of the current
prevailing wage determination issued by the Department of Labor in each solicitation and the award of a contract shall
be conditioned upon the acceptance of the wage determination.The recipient shall report all suspected or reported
violations to the Federal awarding agency.
http://www.whitehouse.gov/omb/circulars_a110/ 7/16/2012
eral awarding agency
shall retain the right to recover an appropriate amount after fully considering the recommendations on disallowed costs
resulting from the final audit.
,72 Subsequent adjustments and continuing responsibilities.
http://www.whitehouse.gov/omb/circulars_a110/ 7/16/2012
/circulars_a110/ • 7/16/2012
d reporting program performance.
(a)Recipients are responsible for managing and monitoring each project,program,subaward.function or activity
supported by the award.Recipients shall monitor subawards to ensure subrecipients have met the audit requirements
as delineated in Section .26.
(b)The Federal awarding agency shall prescribe the frequency with which the performance reports shall be submitted.
Except as provided in paragraph_.51(f),performance reports shall not be required more frequently than quarterly
or.less frequently than annually.Annual reports shall be due 90 calendar days after the grant year;quarterly or semi-
http://www.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
ding agencies shall require recipients to relate financial data to performance data and develop unit
cost information whenever practical.
(b)Recipients'financial management systems shall provide for the following.
(1)Accurate,current and complete disclosure of the financial results of each federally-sponsored project or
program in accordance with the reporting requirements set forth in Section_.52.If a Federal awarding agency
requires reporting on an accrual basis from a recipient that maintains its records on other than an accrual basis,
the recipient shall not be required to establish an accrual accounting system.These recipients may develop such
accrual data for its reports on the basis of an analysis of the documentation on hand.
http://www.whitehouse.gov/omb/circulars_a 110/ 7/16/2012
UD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
0s.11\\iV L4-11\ !1'1 1 V 1\1., Y 1LJLL 1 II 11/1J AJ 1 Ul lr111.1 A111%.11U1.0 I/JUI 11 I 1111, VI'1111.1, 11U U... 1 C1.6%., L1 U1 Ll
• ,•
4.Contract Work Hours and Safety Standards Act(40 U.S.C.327.333)-Where applicable,all contracts awarded
by recipients in excess of$2000 for construction contracts and in excess of$2500 for other contracts that involve the
employment of mechanics or laborers shall include a provision for compliance with Sections 102 and 107 of the
Contract Work Hours and Safety Standards Act(40 U.S.C.327-333),as supplemented by Department of Labor
regulations(29 CFR part 5).Under Section 102 of the Act,each contractor shall be required to compute the wages of
every mechanic and laborer on the basis of a standard work week of 40 hours.Work in excess of the standard work
week is permissible provided that the worker is compensated at a rate of not less than 1'/..limes the basic rate of pay
for all hours worked in excess of 40 hours in the work week.Section 107 of the Act is applicable to construction work
and provides that no laborer or mechanic shall be required to work in surroundings or under working conditions which
are unsanitary,hazardous or dangerous.These requirements do not apply to the purchases of supplies or materials or
articles ordinarily available on the open market,or contracts for transportation or transmission of intelligence.
5.Rights to Inventions Made Under a Contract or Agreement-Contracts or agreements for the performance of
experimental,developmental,or research work shall provide for the rights of the Federal Government and the recipient
in any resulting invention in accordance with 37 CFR pan 401,"Rights to Inventions Made by Nonprofit Organizations
and Small Business Firms Under Government Grants,Contracts and Cooperative Agreements."and any implementing
regulations issued by the awarding agency.
6.Clean Air Act(42 U.S.C.7401 et seq.)and the Federal Water Pollution Control Act(33 U.S.C.1251 et seq.),
as amended-Contracts and subgrants of amounts in excess of$100,000 shall contain a provision that requires the
recipient to agree to comply with all applicable standards,orders or regulations issued pursuant to the Clean Air Act
(42 U.S.C.7401 et seq.)and the Federal Water Pollution Control Act as amended(33 U.S.C.1251 et seq.).Violations
shall be reported to the Federal awarding agency and the Regional Office of the Environmental Protection Agency
(EPA).
•
7.Byrd Anti-Lobbying Amendment(31 U.S.C.1352)-Contractors who apply or bid for an award of$100,000 or
more shall file the required certification.Each tier certifies to the tier above that it will not and has not used Federal
appropriated funds to pay any person or organization for influencing or attempting to influence an officer or employee
of any agency,a member of Congress,officer or employee of Congress,or an employee of a member of Congress in
connection with obtaining any Federal contract,grant or any other award covered by 31 U.S.C.1352.Each tier shall
also disclose any lobbying with non-Federal funds that takes place in connection with obtaining any Federal award.
Such disclosures are forwarded from tier to tier up to the recipient.
8.Debarment and Suspension(E.O.s 12549 and 12689)-No contract shall be made to parties listed on the General
Services Administration's List of Parties Excluded from Federal Procurement or Nonprocuremenl Programs in
accordance with E.O.s 12549 and 12689,"Debarment and Suspension."This list contains the names of parties
debarred,suspended,or otherwise excluded by agencies,and contractors declared ineligible under statutory or
regulatory authority other than E.O.12549.Contractors with awards that exceed the small purchase threshold shall
provide the required certification regarding its exclusion status and that of its principal employees.
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l/fiA goy !Subsr:ubc Ir.RSS Feet., Apply Ior a.lot;
•
whi house. ov/omb/circulars a110/ 7/16/2012
http://www. to g _
l awarding agency.
http://www.whitehouse.gov/omb/circulars_a110/ 7/16/2012
eral awarding agency
shall retain the right to recover an appropriate amount after fully considering the recommendations on disallowed costs
resulting from the final audit.
,72 Subsequent adjustments and continuing responsibilities.
http://www.whitehouse.gov/omb/circulars_a110/ 7/16/2012
/circulars_a110/ • 7/16/2012
d reporting program performance.
(a)Recipients are responsible for managing and monitoring each project,program,subaward.function or activity
supported by the award.Recipients shall monitor subawards to ensure subrecipients have met the audit requirements
as delineated in Section .26.
(b)The Federal awarding agency shall prescribe the frequency with which the performance reports shall be submitted.
Except as provided in paragraph_.51(f),performance reports shall not be required more frequently than quarterly
or.less frequently than annually.Annual reports shall be due 90 calendar days after the grant year;quarterly or semi-
http://www.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
ding agencies shall require recipients to relate financial data to performance data and develop unit
cost information whenever practical.
(b)Recipients'financial management systems shall provide for the following.
(1)Accurate,current and complete disclosure of the financial results of each federally-sponsored project or
program in accordance with the reporting requirements set forth in Section_.52.If a Federal awarding agency
requires reporting on an accrual basis from a recipient that maintains its records on other than an accrual basis,
the recipient shall not be required to establish an accrual accounting system.These recipients may develop such
accrual data for its reports on the basis of an analysis of the documentation on hand.
http://www.whitehouse.gov/omb/circulars_a 110/ 7/16/2012
UD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
EXHIBIT "K"
Use of Debarred, Suspended or Ineligible Contractors
Subject to CFR part 24, Iowa Institute for Community Alliances, a Nebraska Non-profit
Corporation, a subgrantee to the City of Omaha, hereby certifies that all contractors,
subcontractors and suppliers to be used in the Emergency Solutions Grant Program
located at the Iowa Institute for Community Alliances are eligible to participate in the
Emergency Solutions Grant Program and that they are not on any debarred, suspended
or ineligible list.
COMPANY CERTIFICATION
Date: 7- It. -S Z
Signature:
Typed Name and Title: David Discher, Executive Director
Company: Iowa Institute for Community Alliances
ubsistence
and air travel costs provided in paragraph 51.
53
0-res
aermaz
By ci1member
Adopted S. 1. 12012 •
C• Clerk
Approved... .
Mayor
treets
C-25A CITY OF OMAHA
LEGISLATIVE CHAMBER
Omaha,Nebraska
RESOLVED BY THE CITY COUNCIL OF THE CITY OF OMAHA:
WHEREAS, the City of Omaha applied for Emergency Solutions Grant Program
funds from the U.S. Department of Housing and Urban Development, as stated in the Omaha-
Council Bluffs Consortium Consolidated Submission for Community Development Programs:2012
Action Plan approved by the City Council on November 8,2011,Resolution No. 1234,and amended
by City Council on June 5, 2012, Resolution 657, and received a$363,002.00 grant; and, •
WHEREAS, the Metro Area Continuum of Care for the Homeless identified data
management in the form of a Homeless Management Information System as a funding priority for
the Emergency Solutions Grant Program; and,
WHEREAS, the Iowa Institute for Community Alliances will provide Homeless
Management Information System services,as provided in the grant application submitted to the City
of Omaha in response to the FY 2012 Emergency Solutions Grant Program Request for Proposals;
and,
WHEREAS, the City of Omaha has allocated $13,876.00 to the Iowa Institute for
Community Alliances to provide Homeless Management Information System services; and,
WHEREAS, the Planning Department and the Mayor recommend approval of this
grant; and,
WHEREAS, it is beneficial and desirable to provide Homeless Management
Information System services through the Iowa Institute for Community Alliances for a twelve-month
period.
By
Councilmember
Adopted
City Clerk
Approved
Mayor
nventions Made by Nonprofit Organizations
and Small Business Firms Under Government Grants,Contracts and Cooperative Agreements."and any implementing
regulations issued by the awarding agency.
6.Clean Air Act(42 U.S.C.7401 et seq.)and the Federal Water Pollution Control Act(33 U.S.C.1251 et seq.),
as amended-Contracts and subgrants of amounts in excess of$100,000 shall contain a provision that requires the
recipient to agree to comply with all applicable standards,orders or regulations issued pursuant to the Clean Air Act
(42 U.S.C.7401 et seq.)and the Federal Water Pollution Control Act as amended(33 U.S.C.1251 et seq.).Violations
shall be reported to the Federal awarding agency and the Regional Office of the Environmental Protection Agency
(EPA).
•
7.Byrd Anti-Lobbying Amendment(31 U.S.C.1352)-Contractors who apply or bid for an award of$100,000 or
more shall file the required certification.Each tier certifies to the tier above that it will not and has not used Federal
appropriated funds to pay any person or organization for influencing or attempting to influence an officer or employee
of any agency,a member of Congress,officer or employee of Congress,or an employee of a member of Congress in
connection with obtaining any Federal contract,grant or any other award covered by 31 U.S.C.1352.Each tier shall
also disclose any lobbying with non-Federal funds that takes place in connection with obtaining any Federal award.
Such disclosures are forwarded from tier to tier up to the recipient.
8.Debarment and Suspension(E.O.s 12549 and 12689)-No contract shall be made to parties listed on the General
Services Administration's List of Parties Excluded from Federal Procurement or Nonprocuremenl Programs in
accordance with E.O.s 12549 and 12689,"Debarment and Suspension."This list contains the names of parties
debarred,suspended,or otherwise excluded by agencies,and contractors declared ineligible under statutory or
regulatory authority other than E.O.12549.Contractors with awards that exceed the small purchase threshold shall
provide the required certification regarding its exclusion status and that of its principal employees.
. Top of Page
6r V511,1101 ;nctcsibi6iy CopynSllrt mwn'n:ahnn Pnva,:Y Pralicy Cnnlata
l/fiA goy !Subsr:ubc Ir.RSS Feet., Apply Ior a.lot;
•
whi house. ov/omb/circulars a110/ 7/16/2012
http://www. to g _
l awarding agency.
http://www.whitehouse.gov/omb/circulars_a110/ 7/16/2012
eral awarding agency
shall retain the right to recover an appropriate amount after fully considering the recommendations on disallowed costs
resulting from the final audit.
,72 Subsequent adjustments and continuing responsibilities.
http://www.whitehouse.gov/omb/circulars_a110/ 7/16/2012
/circulars_a110/ • 7/16/2012
d reporting program performance.
(a)Recipients are responsible for managing and monitoring each project,program,subaward.function or activity
supported by the award.Recipients shall monitor subawards to ensure subrecipients have met the audit requirements
as delineated in Section .26.
(b)The Federal awarding agency shall prescribe the frequency with which the performance reports shall be submitted.
Except as provided in paragraph_.51(f),performance reports shall not be required more frequently than quarterly
or.less frequently than annually.Annual reports shall be due 90 calendar days after the grant year;quarterly or semi-
http://www.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
ding agencies shall require recipients to relate financial data to performance data and develop unit
cost information whenever practical.
(b)Recipients'financial management systems shall provide for the following.
(1)Accurate,current and complete disclosure of the financial results of each federally-sponsored project or
program in accordance with the reporting requirements set forth in Section_.52.If a Federal awarding agency
requires reporting on an accrual basis from a recipient that maintains its records on other than an accrual basis,
the recipient shall not be required to establish an accrual accounting system.These recipients may develop such
accrual data for its reports on the basis of an analysis of the documentation on hand.
http://www.whitehouse.gov/omb/circulars_a 110/ 7/16/2012
UD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
1
C-25A CITY OF OMAHA
LEGISLATIVE CHAMBER
Omaha,Nebraska
PAGE 2
F'_
1{'s
NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THEt ITY
OF OMAHA:
THAT,the attached Agreement,as recommended by the Mayor,between the City of
Omaha and the Iowa Institute for Community Alliances, an Iowa Non-profit Corporation, 1111 9th
Street,Des Moines,Iowa 50314,in the amount of$13,876.00 for the purpose of providing Homeless
Management Information System services over the course of the one year period of said Agreement,
is hereby approved. Funds shall be paid from the City of Omaha FY 2012 Emergency Solutions
Grant, Fund No. 12139, Organization No. 129028.
APPROVED AS TO FORM:
TY ATTORNEY ATE
pin1sf1704-res
a077,244 / ;
< i
By
• ncilmember
Adopted "Acp71 2 7�0
t C'ty Clerk eZ//2----
Approved
Mayor
2012 Emergency Solutions Grant Program Request for Proposals;
and,
WHEREAS, the City of Omaha has allocated $13,876.00 to the Iowa Institute for
Community Alliances to provide Homeless Management Information System services; and,
WHEREAS, the Planning Department and the Mayor recommend approval of this
grant; and,
WHEREAS, it is beneficial and desirable to provide Homeless Management
Information System services through the Iowa Institute for Community Alliances for a twelve-month
period.
By
Councilmember
Adopted
City Clerk
Approved
Mayor
nventions Made by Nonprofit Organizations
and Small Business Firms Under Government Grants,Contracts and Cooperative Agreements."and any implementing
regulations issued by the awarding agency.
6.Clean Air Act(42 U.S.C.7401 et seq.)and the Federal Water Pollution Control Act(33 U.S.C.1251 et seq.),
as amended-Contracts and subgrants of amounts in excess of$100,000 shall contain a provision that requires the
recipient to agree to comply with all applicable standards,orders or regulations issued pursuant to the Clean Air Act
(42 U.S.C.7401 et seq.)and the Federal Water Pollution Control Act as amended(33 U.S.C.1251 et seq.).Violations
shall be reported to the Federal awarding agency and the Regional Office of the Environmental Protection Agency
(EPA).
•
7.Byrd Anti-Lobbying Amendment(31 U.S.C.1352)-Contractors who apply or bid for an award of$100,000 or
more shall file the required certification.Each tier certifies to the tier above that it will not and has not used Federal
appropriated funds to pay any person or organization for influencing or attempting to influence an officer or employee
of any agency,a member of Congress,officer or employee of Congress,or an employee of a member of Congress in
connection with obtaining any Federal contract,grant or any other award covered by 31 U.S.C.1352.Each tier shall
also disclose any lobbying with non-Federal funds that takes place in connection with obtaining any Federal award.
Such disclosures are forwarded from tier to tier up to the recipient.
8.Debarment and Suspension(E.O.s 12549 and 12689)-No contract shall be made to parties listed on the General
Services Administration's List of Parties Excluded from Federal Procurement or Nonprocuremenl Programs in
accordance with E.O.s 12549 and 12689,"Debarment and Suspension."This list contains the names of parties
debarred,suspended,or otherwise excluded by agencies,and contractors declared ineligible under statutory or
regulatory authority other than E.O.12549.Contractors with awards that exceed the small purchase threshold shall
provide the required certification regarding its exclusion status and that of its principal employees.
. Top of Page
6r V511,1101 ;nctcsibi6iy CopynSllrt mwn'n:ahnn Pnva,:Y Pralicy Cnnlata
l/fiA goy !Subsr:ubc Ir.RSS Feet., Apply Ior a.lot;
•
whi house. ov/omb/circulars a110/ 7/16/2012
http://www. to g _
l awarding agency.
http://www.whitehouse.gov/omb/circulars_a110/ 7/16/2012
eral awarding agency
shall retain the right to recover an appropriate amount after fully considering the recommendations on disallowed costs
resulting from the final audit.
,72 Subsequent adjustments and continuing responsibilities.
http://www.whitehouse.gov/omb/circulars_a110/ 7/16/2012
/circulars_a110/ • 7/16/2012
d reporting program performance.
(a)Recipients are responsible for managing and monitoring each project,program,subaward.function or activity
supported by the award.Recipients shall monitor subawards to ensure subrecipients have met the audit requirements
as delineated in Section .26.
(b)The Federal awarding agency shall prescribe the frequency with which the performance reports shall be submitted.
Except as provided in paragraph_.51(f),performance reports shall not be required more frequently than quarterly
or.less frequently than annually.Annual reports shall be due 90 calendar days after the grant year;quarterly or semi-
http://www.whitehouse.gov/omb/circulars_al 10/ 7/16/2012
ding agencies shall require recipients to relate financial data to performance data and develop unit
cost information whenever practical.
(b)Recipients'financial management systems shall provide for the following.
(1)Accurate,current and complete disclosure of the financial results of each federally-sponsored project or
program in accordance with the reporting requirements set forth in Section_.52.If a Federal awarding agency
requires reporting on an accrual basis from a recipient that maintains its records on other than an accrual basis,
the recipient shall not be required to establish an accrual accounting system.These recipients may develop such
accrual data for its reports on the basis of an analysis of the documentation on hand.
http://www.whitehouse.gov/omb/circulars_a 110/ 7/16/2012
UD may all or part of the cost of the affected Assistance and Rapid Transition to
change the method of payment to activities and require the recipient to Housing Act of 2009(HEARTH Act),
require the recipient to obtain HUD's make further matching contributions to enacted into law on May 20, 2009,
prior approval each time the recipient make up for the contribution consolidates three of the separate
draws down Emergency Solutions Grant determined to be ineligible. homeless assistance programs
(ESG)funds.To obtain prior approval, (6)HUD may require the recipient to administered by HUD under the
the recipient may be required to reimburse its line of credit in an amount McKinney-Vento Homeless Assistance
manually submit its payment requests equal to the funds used for the affected Act into a single grant program,revises
and supporting documentation to HUD activities. the Emergency Shelter Grants program
in order to show that the funds to be (7)HUD may reduce or terminate the and renames the program the
drawn down will be expended on remaining grant of a recipient and Emergency Solutions Grants program,
s,
governments)and 24 CFR part 84(for HMIS)of any individual or family who and transcripts.These rights of access
nonprofit organizations). applies for and/or receives ESG are not limited to the required retention
(3)Records demonstrating compliance assistance will be kept secure and period but last as long as the records are
with the environmental review confidential; retained.
n using document their compliance with the
statements or records.Where a provider,pastoral counselor,or any that the applicant meets one or both of
cant meets one or both of
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ot on any debarred, suspended
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COMPANY CERTIFICATION
Date: 7- It. -S Z
Signature:
Typed Name and Title: David Discher, Executive Director
Company: Iowa Institute for Community Alliances
ubsistence
and air travel costs provided in paragraph 51.
53
0-res
aermaz
By ci1member
Adopted S. 1. 12012 •
C• Clerk
Approved... .
Mayor
treets