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RES 2012-0685 - Agmt with African American Empowerment Network Inc jAAHA,n, 0 i �e� ` Planning Department 61�`,I �,�� R E C G`�`�� > ��;, � Omaha/Douglas Civic Center _ffv� 1a 1819 Farnam Street,Suite 1100 x®'i�r p1 ^ 12 sAtY ! } MI 10, 1 1 Omaha,Nebraska 68183 s` `!'M' I t (402)444-5150 o W } toAIW N. Telefax(402)444-6140 O�'TED FEBR�r�� f CLERKR.E.Cunningham,RA,F.SAME City of Omaha 6" h Director Jim Suttle,Mayor May 22, 2012 Honorable President and Members of the City Council, The attached Resolution approves a Community Development Block Grant (CDBG) agreement between the City of Omaha and the African American Empowerment Network, Inc., a Nebraska non-profit corporation ("The Network"), Willie D. Barney, Director, 2221 North 24th Street, Omaha, Nebraska 68110, for partial funding of its Step Up Omaha Job Training and Work Experience Program ("Step Up Omaha") in the amount of$600,000.00. The Network will use the CDBG funds for administration of a program providing training through placement of the participants in jobs at for-profit and non-profit organizations, life skills and academic guidance, and other general support to economically disadvantaged persons, including at-risk youth, between the ages of 14 and 24 to assist them in becoming self-sufficient. This Agreement covers the time period from April 1, 2012, through December 31, 2012. This Project is included in the FY 2011 Consolidated Submission for Community Planning and Development Programs, approved by the City Council on December 14, 2010, by Resolution 1356, as amended. Funds shall be payable from the FY 2011 Community Development Block Grant Program, Fund No. 12186, Organization No. 1090213. Total project cost is estimated at $1,031,369.00. Sources of funds are a$600,000.00 CDBG funds and $431,369.00 in the form of private financing, including corporate donations. During the last four years, The Network, along with its community partners, has been very successful in administering its summer youth job and life skills training program. In 2012, The Network is collaborating with service and educational organizations, such as: ENCAP, Boys and Girls Clubs, Heartland Workforce Solutions, HOPE Center, Impact One, Latino Center of the Midlands Omaha Economic Development Corporation, Metropolitan Community College, Omaha Public Schools, and Urban League of Nebraska, to significantly expand its program, providing training, guidance, and job placement to 500 young people ages 14-24, including a minimum of 256 participants from low- and moderate-income households. Over 75 for-profit and non-profit organizations have agreed to provide summer jobs for eligible participants. The Step Up Omaha Program is an innovative and collaborative approach to assisting economically disadvantaged young persons in developing skills, receiving on-the-job experience, and enhancing their future employment prospects. or a bank chartered under the laws of the state,payable to the city,or lawful money of the United States,or a United States Govemement Bond(negotiable)are acceptable substitutes for bond requirements. All bidders awarded a contract in the amount of$5,000 or more must comply with the Contract Compliance Ordinance and have on file with the Human Rights& Relations Department the Contract Compliance Report(Form CC-1). This report shall be in effect for 24 months from the date received by the Human Rights& Relations Department. Any questions regarding the Contract Compliance Ordinance should be directed to the Human Rights&Relations Department at(402)444- 5055. (PLEASE PRINT LEGIBLY OR TYPE) Payment Terms O % _ Firm: P PE6s i 01✓4 L. A/Alr•i-04,41,p44,I"a a Incorporated In: 14. , Delivery(or completion) Name: (-WY een/NI `I' e JSignature: U 019.L K�a�re 6" calendar days following Ti ter �I 'Phone:AO)2/0• Ib)1 1 Fa c 4 oz) 5/Z /J/4 award Address: £'O roe ever ever Ckj 6 ?/ 2-7 Street/P.O.Box City State Zip Email Address: &geA/AJ y ei ott, 141,r'4441L Honorable President and Members of the City Council, Page 2 Your favorable consideration of this Resolution will be appreciated. - Referre, City Council for Consideration: -rot) . E. Cunning 'iv Date Mayor's ffi Date Planning Directo Approved as to Funding: .tea' Ja—I Pam Spaccarotella Date Finance Director s,�e� Plnlsf1695-cover letter ja tb 4 `C3 • • �:j.. iquor License be granted. BKC Entertainment, LLC, dba"House of Loom", 1012 South 10th Street. That, the cost of publication of notice of the hearing was $26.00. May 22, 2012 -Resolution No. 675 - Motion to adopt. Carried 7-0. By 4n1 ° Councilmember Adopted MAY 2 2 2012 )- — 0 DEP U Cit Clerk Approved.., . Mayor -4,2 Mayor CDBG AGREEMENT BETWEEN CITY OF OMAHA AND THE AFRICAN AMERICAN EMPOWERMENT NETWORK, INC. A NON-PROFIT CORPORATION FOR PARTIAL SUPPORT OF STEP UP OMAHA JOB TRAINING AND WORK EXPERIENCE PROGRAM April 1, 2012 THROUGH DECEMBER 31, 2012 Fiscal Year 2012 .tea' Ja—I Pam Spaccarotella Date Finance Director s,�e� Plnlsf1695-cover letter ja tb 4 `C3 • • �:j.. iquor License be granted. BKC Entertainment, LLC, dba"House of Loom", 1012 South 10th Street. That, the cost of publication of notice of the hearing was $26.00. May 22, 2012 -Resolution No. 675 - Motion to adopt. Carried 7-0. By 4n1 ° Councilmember Adopted MAY 2 2 2012 )- — 0 DEP U Cit Clerk Approved.., . Mayor -4,2 Mayor TABLE OF CONTENTS SECTION 1 DEFINITIONS AND ABBREVIATIONS SECTION 2 RESPONSIBILITIES OF CONTRACTOR 2.01 Overall Project Performance 2.02 Proposed Goals 2.03 Project Budget 2.04 Term of Agreement SECTION 3 CONDITIONS FOR RECEIPT OF CITY FINANCING 3.01 Documents Required by City 3.01.1 Matching Funds 3.01.2 MBE/WBE Plan 3.01.3 Eligible Contractors 3.01.4 Funding Compliance Deadline SECTION 4 PROJECT RESPONSIBILITIES OF THE CONTRACTOR 4.01 Eligible Use of Funds 4.02 Ineligible Costs 4.03 Terms and Conditions 4.04 Breach of Agreement SECTION 5 GENERAL ADMINISTRATION REQUIREMENTS OF CONTRACTOR 5.01 Financial Management 5.02 Documentation and Record-Keeping 5.03 Reports 5.04 Record Retention 5.05 Personnel and Participant Conditions SECTION 6 CONTRACTOR'S COMPLIANCE WITH OTHER FEDERAL REGULATIONS 6.01 Environmental Review 6.02 Uniform Relocation act SECTION 7 RESPONSIBILITIES OF THE CITY 7.01 Performance Monitoring 7.02 Payments 7.03 Progress Payments 7.04 Technical Assistance ganizations, life skills and academic guidance, and other general support to economically disadvantaged persons, including at-risk youth, between the ages of 14 and 24 to assist them in becoming self-sufficient. This Agreement covers the time period from April 1, 2012, through December 31, 2012. This Project is included in the FY 2011 Consolidated Submission for Community Planning and Development Programs, approved by the City Council on December 14, 2010, by Resolution 1356, as amended. Funds shall be payable from the FY 2011 Community Development Block Grant Program, Fund No. 12186, Organization No. 1090213. Total project cost is estimated at $1,031,369.00. Sources of funds are a$600,000.00 CDBG funds and $431,369.00 in the form of private financing, including corporate donations. During the last four years, The Network, along with its community partners, has been very successful in administering its summer youth job and life skills training program. In 2012, The Network is collaborating with service and educational organizations, such as: ENCAP, Boys and Girls Clubs, Heartland Workforce Solutions, HOPE Center, Impact One, Latino Center of the Midlands Omaha Economic Development Corporation, Metropolitan Community College, Omaha Public Schools, and Urban League of Nebraska, to significantly expand its program, providing training, guidance, and job placement to 500 young people ages 14-24, including a minimum of 256 participants from low- and moderate-income households. Over 75 for-profit and non-profit organizations have agreed to provide summer jobs for eligible participants. The Step Up Omaha Program is an innovative and collaborative approach to assisting economically disadvantaged young persons in developing skills, receiving on-the-job experience, and enhancing their future employment prospects. or a bank chartered under the laws of the state,payable to the city,or lawful money of the United States,or a United States Govemement Bond(negotiable)are acceptable substitutes for bond requirements. All bidders awarded a contract in the amount of$5,000 or more must comply with the Contract Compliance Ordinance and have on file with the Human Rights& Relations Department the Contract Compliance Report(Form CC-1). This report shall be in effect for 24 months from the date received by the Human Rights& Relations Department. Any questions regarding the Contract Compliance Ordinance should be directed to the Human Rights&Relations Department at(402)444- 5055. (PLEASE PRINT LEGIBLY OR TYPE) Payment Terms O % _ Firm: P PE6s i 01✓4 L. A/Alr•i-04,41,p44,I"a a Incorporated In: 14. , Delivery(or completion) Name: (-WY een/NI `I' e JSignature: U 019.L K�a�re 6" calendar days following Ti ter �I 'Phone:AO)2/0• Ib)1 1 Fa c 4 oz) 5/Z /J/4 award Address: £'O roe ever ever Ckj 6 ?/ 2-7 Street/P.O.Box City State Zip Email Address: &geA/AJ y ei ott, 141,r'4441L SECTION 8 MUTUAL AGREEMENTS BETWEEN CITY AND CONTRACTOR 8.01 Release of Information Laws 8.02 Applicable Laws 8.03 Interest of the City 8.04 Independent Contractor 8.05 Captions 8.06 Merger 8.07 Modification 8.08 Assignment 8.09 Strict Compliance 8.10 Termination 8.11 Reversion of Assets 8.12 Indemnification 8.13 Unenforceable Provisions 8.14 Disclosure of Lobbying 8.15 Notices 8.16 Applicability SECTION 9. DEFAULT PROVISIONS 9.01 Remedies SCHEDULE OF EXHIBITS treet. That, the cost of publication of notice of the hearing was $26.00. May 22, 2012 -Resolution No. 675 - Motion to adopt. Carried 7-0. By 4n1 ° Councilmember Adopted MAY 2 2 2012 )- — 0 DEP U Cit Clerk Approved.., . Mayor -4,2 Mayor CDBG AGREEMENT (STEP UP OMAHA JOB TRAINING AND WORK EXPERIENCE PROGRAM) THIS AGREEMENT is entered into by and between the City of Omaha and the African American Empowerment Network, Inc., a Non-profit Corporation, 2221 North 24th Street, Omaha, Nebraska 68110 (sometimes hereinafter referred to as "The Network") based on terms, conditions and provisions as set forth below. RECITALS: WHEREAS, the City of Omaha (hereinafter referred to as "the City") is a municipal corporation located in Douglas County, Nebraska, and is organized and existing 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 has applied for and received Community Development Block Grant (hereinafter referred to as "CDBG") Funds under Title I of the Housing and Community Development Act of 1974, as amended, authorizes the use of CDBG funds for the development of viable urban communities by providing decent housing, a suitable environment, and creating and expanding economic development opportunities, principally for the purpose of benefiting low- and moderate-income persons; and, WHEREAS, the African American Empowerment Network Step Up Omaha Job Training and Work Experience Program (hereinafter sometimes referred to as "Step Up Omaha Program" and previously known as the Step-Up Omaha Youth Employment Program)) was included in the City's FY 2011 Consolidated Submission for Community Planning and Development Programs, as amended, (hereinafter referred to as "Consolidated Plan"), outlining priorities, programs and funding allocations -4 • - nization No. 1090213. Total project cost is estimated at $1,031,369.00. Sources of funds are a$600,000.00 CDBG funds and $431,369.00 in the form of private financing, including corporate donations. During the last four years, The Network, along with its community partners, has been very successful in administering its summer youth job and life skills training program. In 2012, The Network is collaborating with service and educational organizations, such as: ENCAP, Boys and Girls Clubs, Heartland Workforce Solutions, HOPE Center, Impact One, Latino Center of the Midlands Omaha Economic Development Corporation, Metropolitan Community College, Omaha Public Schools, and Urban League of Nebraska, to significantly expand its program, providing training, guidance, and job placement to 500 young people ages 14-24, including a minimum of 256 participants from low- and moderate-income households. Over 75 for-profit and non-profit organizations have agreed to provide summer jobs for eligible participants. The Step Up Omaha Program is an innovative and collaborative approach to assisting economically disadvantaged young persons in developing skills, receiving on-the-job experience, and enhancing their future employment prospects. or a bank chartered under the laws of the state,payable to the city,or lawful money of the United States,or a United States Govemement Bond(negotiable)are acceptable substitutes for bond requirements. All bidders awarded a contract in the amount of$5,000 or more must comply with the Contract Compliance Ordinance and have on file with the Human Rights& Relations Department the Contract Compliance Report(Form CC-1). This report shall be in effect for 24 months from the date received by the Human Rights& Relations Department. Any questions regarding the Contract Compliance Ordinance should be directed to the Human Rights&Relations Department at(402)444- 5055. (PLEASE PRINT LEGIBLY OR TYPE) Payment Terms O % _ Firm: P PE6s i 01✓4 L. A/Alr•i-04,41,p44,I"a a Incorporated In: 14. , Delivery(or completion) Name: (-WY een/NI `I' e JSignature: U 019.L K�a�re 6" calendar days following Ti ter �I 'Phone:AO)2/0• Ib)1 1 Fa c 4 oz) 5/Z /J/4 award Address: £'O roe ever ever Ckj 6 ?/ 2-7 Street/P.O.Box City State Zip Email Address: &geA/AJ y ei ott, 141,r'4441L for the 2011 program year, approved on December 14, 2010, by City Council Resolution No. 1356 and amended on April 3, 2012 by Resolution No. 364; and, WHEREAS, The Network has submitted an application that provides for partial financing of the Step Up Omaha Program for the period from April 1, 2012 through December 31, 2012 (hereafter referred to as the "Project"); and, WHEREAS, the Consolidated Plan identified that this Project meets Community Development Block Grant national objective benefiting low- and moderate-income limited clientele; and, WHEREAS, the Project is a CDBG-eligible activity in that the Project qualifies as a Public Service [24 C.F.R. 570.201(e)], serves a low- and moderate-income limited clientele and facilitates economic development by providing partial support for employment services related to jobs training for at-risk youth and young adults; and, • WHEREAS, the City wishes to enter into an agreement with The Network to assist the City in utilizing such CDBG funds; and, WHEREAS, the Step-Up Omaha Program Grant was included in the FY 2011 CDBG Program, as amended, and $600,000.00 was allocated to the Project; and, WHEREAS, The Network has indicated the total estimated cost to administer the Project to be $1,031,369.00, consisting of a $600,000.00 CDBG Grant and $431,369.00 in the form of private financing; and, WHEREAS, The Network is organized to engage in such activities as the board of directors may from time to time determine to be appropriate in undertaking a comprehensive and coordinated approach to redeveloping targeted geographic areas in a holistic way; and, WHEREAS, it is in the best interest of the City and the residents thereof that the City enter into an Agreement with The Network to provide CDBG funding in the amount not to exceed $600,000.00 for the Project. - 5 - project cost is estimated at $1,031,369.00. Sources of funds are a$600,000.00 CDBG funds and $431,369.00 in the form of private financing, including corporate donations. During the last four years, The Network, along with its community partners, has been very successful in administering its summer youth job and life skills training program. In 2012, The Network is collaborating with service and educational organizations, such as: ENCAP, Boys and Girls Clubs, Heartland Workforce Solutions, HOPE Center, Impact One, Latino Center of the Midlands Omaha Economic Development Corporation, Metropolitan Community College, Omaha Public Schools, and Urban League of Nebraska, to significantly expand its program, providing training, guidance, and job placement to 500 young people ages 14-24, including a minimum of 256 participants from low- and moderate-income households. Over 75 for-profit and non-profit organizations have agreed to provide summer jobs for eligible participants. The Step Up Omaha Program is an innovative and collaborative approach to assisting economically disadvantaged young persons in developing skills, receiving on-the-job experience, and enhancing their future employment prospects. or a bank chartered under the laws of the state,payable to the city,or lawful money of the United States,or a United States Govemement Bond(negotiable)are acceptable substitutes for bond requirements. All bidders awarded a contract in the amount of$5,000 or more must comply with the Contract Compliance Ordinance and have on file with the Human Rights& Relations Department the Contract Compliance Report(Form CC-1). This report shall be in effect for 24 months from the date received by the Human Rights& Relations Department. Any questions regarding the Contract Compliance Ordinance should be directed to the Human Rights&Relations Department at(402)444- 5055. (PLEASE PRINT LEGIBLY OR TYPE) Payment Terms O % _ Firm: P PE6s i 01✓4 L. A/Alr•i-04,41,p44,I"a a Incorporated In: 14. , Delivery(or completion) Name: (-WY een/NI `I' e JSignature: U 019.L K�a�re 6" calendar days following Ti ter �I 'Phone:AO)2/0• Ib)1 1 Fa c 4 oz) 5/Z /J/4 award Address: £'O roe ever ever Ckj 6 ?/ 2-7 Street/P.O.Box City State Zip Email Address: &geA/AJ y ei ott, 141,r'4441L NOW, THEREFORE, IN CONSIDERATION OF THESE MUTUAL COVENANTS, the parties do hereby agree as follows: SECTION 1. DEFINITIONS AND ABBREVIATIONS. The following terms shall have the following meanings for all purposes in this Agreement: 1.01 "City" shall mean—the City of Omaha, a Nebraska Municipal Corporation. 1.02 "Contractor" shall mean — the African American Empowerment Network, Inc., a non- profit corporation, 2221 North 24th Street, Omaha,Nebraska 68110 (see Exhibit "A"). 1.02.1 "The Network" shall mean the African American Empowerment Network, Inc. 1.03 "Director" shall mean—the Planning Director of the City of Omaha. 1.04 "Recipient" shall mean—the City of Omaha. 1.05 "Subrecipient" shall mean — a public or private non-profit agency, authority or organization receiving CDBG funds to undertake eligible activities. In this Agreement, the Subrecipient is The Network. 1.06 "HUD" shall mean—the U.S. Department of Housing and Urban Development. 1.07 "CDBG Grant Funds" shall mean—that portion of the Community Development Block Grant Program funds awarded to the City, subject to and conditioned upon actual receipt of same by the City of Omaha, as may be available to grant during the FY 2011 program year for the use specified herein in an amount not to exceed $600,000.00 payable from the CDBG Economic Development Program, Fund No.12186 Organization No. 109021, subject to the terms, conditions and requirements of said Grant Fund Agreement. 1.07.1 "Grant" shall mean — Community Development Block Grant funds made subject to terms, conditions and provisions of this Grant Agreement. The grant amount of$600,000.00 shall be unsecured. The Network shall perform project responsibilities as outlined in Section 2.01 herein during the term of this agreement. In the event there are unencumbered funds at the expiration of term of the agreement, these funds shall be de-obligated by the City. In the event of default, gross negligence or other substantial non-compliance, the amount of the Grant shall be due and payable immediately from The Network to the City. 1.08 "Step Up Omaha Job Training and Work Experience Program" or"Project" shall mean — a program administered by The Network that provides training through placement of the participants in jobs at for-profit and non-profit organizations, provides of life skills - 6 - oviding training, guidance, and job placement to 500 young people ages 14-24, including a minimum of 256 participants from low- and moderate-income households. Over 75 for-profit and non-profit organizations have agreed to provide summer jobs for eligible participants. The Step Up Omaha Program is an innovative and collaborative approach to assisting economically disadvantaged young persons in developing skills, receiving on-the-job experience, and enhancing their future employment prospects. or a bank chartered under the laws of the state,payable to the city,or lawful money of the United States,or a United States Govemement Bond(negotiable)are acceptable substitutes for bond requirements. All bidders awarded a contract in the amount of$5,000 or more must comply with the Contract Compliance Ordinance and have on file with the Human Rights& Relations Department the Contract Compliance Report(Form CC-1). This report shall be in effect for 24 months from the date received by the Human Rights& Relations Department. Any questions regarding the Contract Compliance Ordinance should be directed to the Human Rights&Relations Department at(402)444- 5055. (PLEASE PRINT LEGIBLY OR TYPE) Payment Terms O % _ Firm: P PE6s i 01✓4 L. A/Alr•i-04,41,p44,I"a a Incorporated In: 14. , Delivery(or completion) Name: (-WY een/NI `I' e JSignature: U 019.L K�a�re 6" calendar days following Ti ter �I 'Phone:AO)2/0• Ib)1 1 Fa c 4 oz) 5/Z /J/4 award Address: £'O roe ever ever Ckj 6 ?/ 2-7 Street/P.O.Box City State Zip Email Address: &geA/AJ y ei ott, 141,r'4441L and academic guidance, and other general support to economically disadvantaged persons to assist them in becoming self-sufficient. 1.09 "Project Completion" shall mean - (1) the date all funds have been received by the Subrecipient, and allocated to the Project, (2) the date all CDBG funds have been disbursed and(3)the date all specified goals have been satisfied. 1.10 "Project Close Out" shall mean — the dates all project CDBG funds have been disbursed and City has completed HUD close out procedures (24 C.F.R. 570.509 and OMB Circular A-110 Subpart A(g)) (Exhibit"B"). 1.11 "Neighborhood Revitalization Strategy Areas" (NRSA) shall mean — those areas designated according to CPD Notice 96-01 of the CDBG Program that require partnerships to stimulate reinvestment in human and economic capital and coordinated strategies to address their needs. These areas are primarily residential, economically distressed areas. See Exhibit "C" for area boundaries. 1.12 "Low- and Moderate-Income (LMI) Person" shall mean — a person whose annual household income does not exceed 80 percent of the median household income for the Omaha NE-IA Metropolitan Statistical Area as determined and updated by HUD. Attached as Exhibit"D" is the current Median Family Income Chart. 1.13 "CDBG" shall mean — that portion of the Community Development Block Grant awarded to the City, subject to and conditioned upon actual receipt of same by the City of Omaha, as may be available to grant during the FY 2011 program year for the use specified herein in an amount not to exceed $600,000.00, subject to the terms, conditions and requirements of said Agreement. 1.14 "Client" or "Participant" shall mean — a qualified person making application to The Network to participate in the Project. 1.15 "Program Income" shall mean — the gross income received by the Recipient or Subrecipient directly generated from the use of CDBG funds (See Exhibit "E") (24 C.F.R. 570.500). When such income is generated by an activity that is only partially assisted with CDBG funds, the income shall be prorated to reflect the percentage of CDBG funds used (see Exhibit "F" attached hereto and incorporated herein by this reference as though fully set forth). Any program income funds received during the term of this Agreement shall be returned to the City within thirty (30) days prior to any additional distribution of CDBG funds. 1.15.1 Reasonable program fees shall be permitted to be retained by the Subrecipient and shall be exempt from this provision. SECTION 2. RESPONSIBILITIES OF CONTRACTOR. 2.01 Overall Project Performance. The Contractor shall use Grant funds for the administration of the Project and the marketing of the Project to qualified low- and moderate-income participants in accordance with the proposed goals. While the -7 - a bank chartered under the laws of the state,payable to the city,or lawful money of the United States,or a United States Govemement Bond(negotiable)are acceptable substitutes for bond requirements. All bidders awarded a contract in the amount of$5,000 or more must comply with the Contract Compliance Ordinance and have on file with the Human Rights& Relations Department the Contract Compliance Report(Form CC-1). This report shall be in effect for 24 months from the date received by the Human Rights& Relations Department. Any questions regarding the Contract Compliance Ordinance should be directed to the Human Rights&Relations Department at(402)444- 5055. (PLEASE PRINT LEGIBLY OR TYPE) Payment Terms O % _ Firm: P PE6s i 01✓4 L. A/Alr•i-04,41,p44,I"a a Incorporated In: 14. , Delivery(or completion) Name: (-WY een/NI `I' e JSignature: U 019.L K�a�re 6" calendar days following Ti ter �I 'Phone:AO)2/0• Ib)1 1 Fa c 4 oz) 5/Z /J/4 award Address: £'O roe ever ever Ckj 6 ?/ 2-7 Street/P.O.Box City State Zip Email Address: &geA/AJ y ei ott, 141,r'4441L primary measurement of accomplishments will be the number of eligible persons participating in the Project, performance related to the goals listed in Section 2.02 will also be considered in determining compliance with the terms of this Agreement. 2.02 Proposed Goals. During the Grant period, The Network will provide its best efforts to accomplish the following goals: 2.02.1 Partner with other individuals and organizations to administer a 10-week program that: 2.02.1.1 provides educational support, employment and life skills training, and work experience to approximately 400 individuals between the ages of 16 and 24; 2.02.1.2 provides educational support and life skills training to approximately 100 individuals between the ages of 14 and 16. 2.02.2 Recruit participants from partner agencies/programs and the general public through City-wide marketing with special emphasis on attracting participants who live in the North and South Neighborhood Revitalization Strategy Areas; 2.02.3 Assess the educational and skill levels of participants; 2.02.4 Provide a ten-week training and job placement program for a minimum of 256 eligible low- and moderate-income participants; 2.02.5 Quantify and evaluate the Program outcomes; 2.02.6 Minimum Number of Maximum Percent of Area Low/Moderate Income Median Household Income Permitted for Participants Low/Moderate Income Participants 256 80% 2.03 Project Budget. The Contractor asserts that the funding sources and amounts listed below are committed prior to disbursement of City Grant funds. A copy of the Project Budget is attached as Exhibit"P". FY 2011 CDBG $600,000.00 Private Funds $431,369.00 Estimated Project Cost $1,031,369.00 2.04 Term of the Agreement. This Agreement shall be in full force and effect beginning April 1, 2012, and shall end on December 31, 2012. Eligible expenditures incurred after April 1, 2012, but prior to execution of this Agreement may be submitted for reimbursement in accordance with the terms of this Agreement. The Planning Director - 8 - t "F" attached hereto and incorporated herein by this reference as though fully set forth). Any program income funds received during the term of this Agreement shall be returned to the City within thirty (30) days prior to any additional distribution of CDBG funds. 1.15.1 Reasonable program fees shall be permitted to be retained by the Subrecipient and shall be exempt from this provision. SECTION 2. RESPONSIBILITIES OF CONTRACTOR. 2.01 Overall Project Performance. The Contractor shall use Grant funds for the administration of the Project and the marketing of the Project to qualified low- and moderate-income participants in accordance with the proposed goals. While the -7 - a bank chartered under the laws of the state,payable to the city,or lawful money of the United States,or a United States Govemement Bond(negotiable)are acceptable substitutes for bond requirements. All bidders awarded a contract in the amount of$5,000 or more must comply with the Contract Compliance Ordinance and have on file with the Human Rights& Relations Department the Contract Compliance Report(Form CC-1). This report shall be in effect for 24 months from the date received by the Human Rights& Relations Department. Any questions regarding the Contract Compliance Ordinance should be directed to the Human Rights&Relations Department at(402)444- 5055. (PLEASE PRINT LEGIBLY OR TYPE) Payment Terms O % _ Firm: P PE6s i 01✓4 L. A/Alr•i-04,41,p44,I"a a Incorporated In: 14. , Delivery(or completion) Name: (-WY een/NI `I' e JSignature: U 019.L K�a�re 6" calendar days following Ti ter �I 'Phone:AO)2/0• Ib)1 1 Fa c 4 oz) 5/Z /J/4 award Address: £'O roe ever ever Ckj 6 ?/ 2-7 Street/P.O.Box City State Zip Email Address: &geA/AJ y ei ott, 141,r'4441L may extend the term of this Agreement, but in no event shall the date extend beyond March 31, 2013 SECTION 3. CONDITIONS FOR RECEIPT OF CITY FINANCING. 3.01 Document Required by City. In no event shall the City assume any obligation to make any or all of the above-referenced funding available, nor shall the City incur any liability hereunder, unless and until the Contractor has submitted for and received the prior approval of the Director of all of the documents listed below. 3.01.1 Evidence of Leveraged/Matching Funds. Contractor shall provide written evidence that funds detailed in the Project Budget described in Section 2.03 herein have been committed or secured for this Project. 3.01.2 Minority/Women Owned Business Enterprise Plan. Contractor shall submit to the Director for his review and approval a minority and women business participation plan that discusses economic development and employment opportunities. (See Exhibit "N") These plans shall ensure that the Contractor and its subcontractors will make their 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 and actively managed minority ethnic race or women members. (Municipal Code, City of Omaha, Nebraska, Sec. 10-191(h). 3.01.3 Eligible Contractors. Contractor hereby certifies that it is not currently, and never has been, debarred or disqualified from participation in federally- funded projects. In addition, Contractor shall obtain a certificate from each contractor or subcontractor to be used on this 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). The Director shall approve all contractors and subcontractors prior to being hired by the Contractor. 3.01.4 Funding Compliance Deadline. In the event that all conditions of funding are not met on or before July 1, 2012, then this Agreement shall automatically become null and void and the City shall not be deemed to have assumed any obligation or liability hereunder. SECTION 4. PROJECT RESPONSIBILITIES OF THE CONTRACTOR. 4.01 Eligible Use of Funds. The Contractor does hereby certify, contract and agree that any and all funding obtained or made available hereunder shall be used solely and exclusively for the purposes described herein. The Contractor shall not request disbursement of funds under this Agreement until the funds are needed for payment of eligible costs. 4.01.1 Eligible uses of grant funds for the Project include, but are not limited to: -9 - -7 - a bank chartered under the laws of the state,payable to the city,or lawful money of the United States,or a United States Govemement Bond(negotiable)are acceptable substitutes for bond requirements. All bidders awarded a contract in the amount of$5,000 or more must comply with the Contract Compliance Ordinance and have on file with the Human Rights& Relations Department the Contract Compliance Report(Form CC-1). This report shall be in effect for 24 months from the date received by the Human Rights& Relations Department. Any questions regarding the Contract Compliance Ordinance should be directed to the Human Rights&Relations Department at(402)444- 5055. (PLEASE PRINT LEGIBLY OR TYPE) Payment Terms O % _ Firm: P PE6s i 01✓4 L. A/Alr•i-04,41,p44,I"a a Incorporated In: 14. , Delivery(or completion) Name: (-WY een/NI `I' e JSignature: U 019.L K�a�re 6" calendar days following Ti ter �I 'Phone:AO)2/0• Ib)1 1 Fa c 4 oz) 5/Z /J/4 award Address: £'O roe ever ever Ckj 6 ?/ 2-7 Street/P.O.Box City State Zip Email Address: &geA/AJ y ei ott, 141,r'4441L 4.01.1.1 reimbursement for wages at no less than the current minimum wage rate,paid to participants for actual work done on the job site; 4.01.1.2 reimbursement for other wage-related expenses such as employer- paid social security taxes and workman's compensation for those participants working on the job site; 4.01.1.2 reimbursement forr the wages and wage-related expenses of persons providing project management services and providing case management services to participants; and 4.01.1.3 reimbursement for expenditures necessary for the general administration of the Project; and 4.01.1.3 reimbursement of the reasonable cost of a single audit of the Project that may be required because the total CDBG expenditures exceed $500,000.00. (Exhibit"Q") 4.02 Ineligible Costs. 4.02.1 The Contractor shall be responsible for payment of any Project costs that exceed those specified in this Agreement. 4.02.2 Ineligible costs for the Project include any direct payment to participants including stipends paid to Project participants for time spent in training that takes place outside of the actual hours worked at a for-profit or non-profit organization employing the participant. (Exhibit"P") 4.03 Terms and Conditions. The Contractor shall abide by all terms and conditions of this Agreement. 4.04 Breach of Agreement. If through breach of this Agreement the Contractor fails to abide by all terms and conditions as described herein, all CDBG funds previously provided to the Contractor through fulfillment of this Agreement shall promptly be returned to the City. SECTION 5. GENERAL ADMINISTRATIVE REQUIREMENTS OF CONTRACTOR. Contractor agrees to comply with the following requirements: 5.01 Financial Management. 5.01.1 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 "B", attached hereto and incorporated herein as though fully set forth). - 10 - y become null and void and the City shall not be deemed to have assumed any obligation or liability hereunder. SECTION 4. PROJECT RESPONSIBILITIES OF THE CONTRACTOR. 4.01 Eligible Use of Funds. The Contractor does hereby certify, contract and agree that any and all funding obtained or made available hereunder shall be used solely and exclusively for the purposes described herein. The Contractor shall not request disbursement of funds under this Agreement until the funds are needed for payment of eligible costs. 4.01.1 Eligible uses of grant funds for the Project include, but are not limited to: -9 - -7 - a bank chartered under the laws of the state,payable to the city,or lawful money of the United States,or a United States Govemement Bond(negotiable)are acceptable substitutes for bond requirements. All bidders awarded a contract in the amount of$5,000 or more must comply with the Contract Compliance Ordinance and have on file with the Human Rights& Relations Department the Contract Compliance Report(Form CC-1). This report shall be in effect for 24 months from the date received by the Human Rights& Relations Department. Any questions regarding the Contract Compliance Ordinance should be directed to the Human Rights&Relations Department at(402)444- 5055. (PLEASE PRINT LEGIBLY OR TYPE) Payment Terms O % _ Firm: P PE6s i 01✓4 L. A/Alr•i-04,41,p44,I"a a Incorporated In: 14. , Delivery(or completion) Name: (-WY een/NI `I' e JSignature: U 019.L K�a�re 6" calendar days following Ti ter �I 'Phone:AO)2/0• Ib)1 1 Fa c 4 oz) 5/Z /J/4 award Address: £'O roe ever ever Ckj 6 ?/ 2-7 Street/P.O.Box City State Zip Email Address: &geA/AJ y ei ott, 141,r'4441L 5.01.2 Cost Principals. The Contractor shall comply with the requirements and the standards of OMB Circular No. A-122, "Cost Principles for the Nonprofit Organizations" (Exhibit"F"), and with the requirements of OMB Circular A- 110 (Exhibit "B"). Both Exhibits are attached hereto and incorporated herein as though fully set forth. 5.01.2.1 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 default remedies referenced herein in Section 9. 5.02 Documentation and Record-Keeping. All Contractor records with respect to any matters covered in this Agreement shall be made available to the City, its designees or the federal government, at any time during normal business hours, as often as the City deems necessary, to audit, examine, and make excerpts or transcripts of all relevant data. Any contract entered into by the contractor with any subcontractors shall include this Section to ensure said access. 5.03 Reports. The Contractor shall submit to the City the following reports in accordance with 24 C.F.R. 570.506 with the submission timelines as specified. 5.03.1 Program Reports. The Contractor shall provide reports to the Director describing activities and accomplishments and notice of any significant problems and/or delays on this project. Reports will be submitted at the time of each pay request, or, at a minimum, within 15 days following the end of the calendar year quarter. The program reports are required until such time as all funds have been expended and the City issues the final payment to the • Contractor. 5.03.2 Participant Report. For each participant in the Step Up Omaha Program and prior to any reimbursement related to that participant, the Contractor shall provide the City with the information listing in 5.03.2.1 and retain the following records for five (5) years after the expiration of this Agreement as specified in Section 2.04 of this Agreement. For this Agreement, records shall be retained until December 31, 2017. 5.03.2.1 Documentation. Contractor shall be permitted to document participation by having each participant complete participation documents, such as a program application and participation agreement, in a mutually agreeable format similar to the • documents attached hereto as Exhibit "G", provided that document includes, at a minimum, the following information: 5.03.2.1.1 participant name(s) • 5.03.2.1.2 home address - 11 - -9 - -7 - a bank chartered under the laws of the state,payable to the city,or lawful money of the United States,or a United States Govemement Bond(negotiable)are acceptable substitutes for bond requirements. All bidders awarded a contract in the amount of$5,000 or more must comply with the Contract Compliance Ordinance and have on file with the Human Rights& Relations Department the Contract Compliance Report(Form CC-1). This report shall be in effect for 24 months from the date received by the Human Rights& Relations Department. Any questions regarding the Contract Compliance Ordinance should be directed to the Human Rights&Relations Department at(402)444- 5055. (PLEASE PRINT LEGIBLY OR TYPE) Payment Terms O % _ Firm: P PE6s i 01✓4 L. A/Alr•i-04,41,p44,I"a a Incorporated In: 14. , Delivery(or completion) Name: (-WY een/NI `I' e JSignature: U 019.L K�a�re 6" calendar days following Ti ter �I 'Phone:AO)2/0• Ib)1 1 Fa c 4 oz) 5/Z /J/4 award Address: £'O roe ever ever Ckj 6 ?/ 2-7 Street/P.O.Box City State Zip Email Address: &geA/AJ y ei ott, 141,r'4441L 5.03.2.1.3 location of home address relative to the Neighborhood Revitalization Strategy Area (NRSA) boundaries (Exhibit"C") 5.03.2.1.4 self-certification of income eligibility by indicating the actual annual household income and household size or annual household income relative to 80% of the Median Family Income (MFI) as determined and revised annually by HUD. (Exhibit "D") Prior to participant income self-certification, the Contractor must provide the participant with a copy of the City of Omaha Definition of Income (Exhibit "0") and have the participant sign an affidavit or other document indicating that the income being reported is accurate based upon that Definition. In addition to obtaining the self-certification, the Contractor must monitor the accuracy of self- ' certification by conducting a source document verification of all sources of income for at least ten percent (10%) of Project participants who do not reside in the NRSA areas. Source documentation income verification is not required for participants residing within NRSA boundaries (Exhibit "C") as they are assumed to qualify as low/moderate income. 5.03.2.1.6 gender of participant 5.03.2.1.7 ethnicity of participant(Exhibit "G") 5.03.2.1.8 race of participant (Exhibit "G") 5.03.3 Performance Measurement Report. No later than 30 days after the end of the contract term or end of the activity, whichever comes first, the contractor shall provide a report to the City identifying the accomplishments of the program, including number of participants, training activities, placements, and other outcomes. 5.03.4 Financial Status Reports. Contractor shall submit financial status reports (OMB Circular A-110) (Exhibit "B") with pay requests. Documentation of the expenses for which reimbursement is being requested shall accompany all pay requests. Such documentation shall include information such as time sheets and evidence of payment. These reports shall be due, at a minimum, 15 calendar days from the end of the calendar year quarter. Attached as Exhibit "H", and incorporated herein by this reference as though fully set forth, is a sample financial status report. 5.04 Record Retention. The Contractor and its subcontractors 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, or any of their duly authorized representatives, or any duly authorized representatives of the City, as approved by the Director, shall have access to any books, documents, papers, records and accounts of the Contractor, or its - 12 = money of the United States,or a United States Govemement Bond(negotiable)are acceptable substitutes for bond requirements. All bidders awarded a contract in the amount of$5,000 or more must comply with the Contract Compliance Ordinance and have on file with the Human Rights& Relations Department the Contract Compliance Report(Form CC-1). This report shall be in effect for 24 months from the date received by the Human Rights& Relations Department. Any questions regarding the Contract Compliance Ordinance should be directed to the Human Rights&Relations Department at(402)444- 5055. (PLEASE PRINT LEGIBLY OR TYPE) Payment Terms O % _ Firm: P PE6s i 01✓4 L. A/Alr•i-04,41,p44,I"a a Incorporated In: 14. , Delivery(or completion) Name: (-WY een/NI `I' e JSignature: U 019.L K�a�re 6" calendar days following Ti ter �I 'Phone:AO)2/0• Ib)1 1 Fa c 4 oz) 5/Z /J/4 award Address: £'O roe ever ever Ckj 6 ?/ 2-7 Street/P.O.Box City State Zip Email Address: &geA/AJ y ei ott, 141,r'4441L subcontractors which are directly pertinent to this project for the purpose of making audit, examination, excerpts and transcriptions. Such records and accounts shall be • retained for five (5) years after expiration of the Agreement, or December 31, 2017. In the event the term of the Agreement would be extended, the record retention period would be extended for the additional time. 5.05 Personnel and Participant Conditions. 5.05.1 Contract Compliance Clause. 5.05.1.1 Section 10-192 of the Omaha Municipal Code, Equal Employment Opportunity Clause (Exhibit "J"). 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, 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 subcontractors 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. 5.05.1.2 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, sex, age, sexual orientation, gender identity, national origin, familial or handicap status. 5.05.1.3 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 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. 5.05.1.4 The Contractor and its 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 - 13 - ds and accounts of the Contractor, or its - 12 = money of the United States,or a United States Govemement Bond(negotiable)are acceptable substitutes for bond requirements. All bidders awarded a contract in the amount of$5,000 or more must comply with the Contract Compliance Ordinance and have on file with the Human Rights& Relations Department the Contract Compliance Report(Form CC-1). This report shall be in effect for 24 months from the date received by the Human Rights& Relations Department. Any questions regarding the Contract Compliance Ordinance should be directed to the Human Rights&Relations Department at(402)444- 5055. (PLEASE PRINT LEGIBLY OR TYPE) Payment Terms O % _ Firm: P PE6s i 01✓4 L. A/Alr•i-04,41,p44,I"a a Incorporated In: 14. , Delivery(or completion) Name: (-WY een/NI `I' e JSignature: U 019.L K�a�re 6" calendar days following Ti ter �I 'Phone:AO)2/0• Ib)1 1 Fa c 4 oz) 5/Z /J/4 award Address: £'O roe ever ever Ckj 6 ?/ 2-7 Street/P.O.Box City State Zip Email Address: &geA/AJ y ei ott, 141,r'4441L Relations Director shall be those, which relate to Paragraphs 5.05.1.1 through 5.05.1.7 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. 5.05.1.5 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 5.05.1.1 through 5.05.1.7 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. 5.05.1.6 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 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, contractor and his subcontractors. 5.05.1.7 The Contractor shall include the provisions of Paragraphs 5.05.1.1 through 5.05.1.7 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, Section 1, 9-26-00). 5.05.2 Employment Insurance and Bonding. The Contractor shall purchase a blanket fidelity bond covering all employees, at a minimum, in an amount equal to cash advances from the City. The Contractor shall comply with bonding and insurance requirements of OMB Circular A-110, Bonding and Insurance (Exhibit"B"). 5.05.3 Workers' Compensation. The Contractor shall provide Workers' Compensation Insurance coverage for all employees involved in the performance in this Agreement. 5.05.4 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 - 14 - his records. Records accessible to the Human Rights and - 13 - ds and accounts of the Contractor, or its - 12 = money of the United States,or a United States Govemement Bond(negotiable)are acceptable substitutes for bond requirements. All bidders awarded a contract in the amount of$5,000 or more must comply with the Contract Compliance Ordinance and have on file with the Human Rights& Relations Department the Contract Compliance Report(Form CC-1). This report shall be in effect for 24 months from the date received by the Human Rights& Relations Department. Any questions regarding the Contract Compliance Ordinance should be directed to the Human Rights&Relations Department at(402)444- 5055. (PLEASE PRINT LEGIBLY OR TYPE) Payment Terms O % _ Firm: P PE6s i 01✓4 L. A/Alr•i-04,41,p44,I"a a Incorporated In: 14. , Delivery(or completion) Name: (-WY een/NI `I' e JSignature: U 019.L K�a�re 6" calendar days following Ti ter �I 'Phone:AO)2/0• Ib)1 1 Fa c 4 oz) 5/Z /J/4 award Address: £'O roe ever ever Ckj 6 ?/ 2-7 Street/P.O.Box City State Zip Email Address: &geA/AJ y ei ott, 141,r'4441L to comply with Section 3. (Exhibit"K") 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. 5.05.5 Conflict of Interest. The Contractor agrees to abide by the provisions of 24 C.F.R. 570.611 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 CDBG entitlement program. 5.05.6 Attestation of Citizenship. To comply with Neb. Rev. Stat. 4-108 through 4- 114, the Contractor agrees to comply with the requirements of 5.05.6.1 and 5.05.6.2. 5.05.6.1 The Contractor shall include the following language in all contracts and subcontracts for the physical performance of services: "The Contractor is required and hereby agrees to use a federal immigration verification system to determine the work eligibility status of new employees physically performing services within the State of Nebraska. A federal immigration verification system means the electronic verification of the work authorization program authorized by the Illegal Immigration Reform and Immigrant Responsibility Act of 1996, 8 U.S.C. 1324a, known as the E-Verify Program, or an equivalent federal program designated by the United States Department of Homeland Security or other federal agency authorized to verify the work eligibility status of a newly hired employee. If the Contractor is an individual or sole proprietorship,the following applies: a) The Contractor must complete the United States Citizenship Attestation Form available on the Department of Administrative Services website at www.das.state.ne.us. b) If the Contractor indicates on such attestation form that he or she is a qualified alien, the Contractor agrees to provide the U.S. Citizenship and Immigration Services documentation required to verify the Contractor's lawful presence in the United States using the Systematic Alien Verification for Entitlements (SAVE) Program. - 15 - or its - 12 = money of the United States,or a United States Govemement Bond(negotiable)are acceptable substitutes for bond requirements. All bidders awarded a contract in the amount of$5,000 or more must comply with the Contract Compliance Ordinance and have on file with the Human Rights& Relations Department the Contract Compliance Report(Form CC-1). This report shall be in effect for 24 months from the date received by the Human Rights& Relations Department. Any questions regarding the Contract Compliance Ordinance should be directed to the Human Rights&Relations Department at(402)444- 5055. (PLEASE PRINT LEGIBLY OR TYPE) Payment Terms O % _ Firm: P PE6s i 01✓4 L. A/Alr•i-04,41,p44,I"a a Incorporated In: 14. , Delivery(or completion) Name: (-WY een/NI `I' e JSignature: U 019.L K�a�re 6" calendar days following Ti ter �I 'Phone:AO)2/0• Ib)1 1 Fa c 4 oz) 5/Z /J/4 award Address: £'O roe ever ever Ckj 6 ?/ 2-7 Street/P.O.Box City State Zip Email Address: &geA/AJ y ei ott, 141,r'4441L c) The Contractor understands and agrees that lawful presence in the United States is required and the Contractor may be disqualified or the contract terminated if such lawful presence cannot be verified as required by Neb. Rev. Stat. 4-108." 5.05.6.2 The Contractor shall have each person applying for a benefit under this agreement execute a United States Citizenship Attestation Form For Public Benefit (Exhibit "L") verifying eligibility status for the purposes of receiving a public benefit. The Contractor shall maintain aggregate records for the duration of the contract showing: (a) the number of applicants for public benefits under this agreement; and (b) the number of applicants rejected pursuant to the lawful presence requirement set forth in the above- referenced Nebraska statutes. Further,the Contractor shall provide a summary report to the City no later than December 15th each calendar year reflecting this applicant data for such calendar year. 5.05.7 Employee Classification Act. To comply with the Nebraska Employee Classification Act, all general and subcontractors who perform construction or delivery service pursuant to this contract shall submit to the City an Affidavit For Employee Classification Act (Exhibit "M") attesting that (1) each individual performing services for such contractor is properly classified under the Nebraska Employee Classification Act, 2010 LB 563 ("the Act"), (2) such contractor has completed a federal I-9 immigration form and has such form on file for each employee performing services, (3) such contractor has complied with Neb. Rev. Stat. section 4-114 (federal immigration verification system), (4) such contractor has no reasonable basis to believe that any individual performing services for such contractor is an undocumented worker, and (5) as of the time of the contract, such contractor is not barred from contracting with the state or any political subdivision pursuant to the Act. The contractor shall follow the provisions of the Act. A violation of the Act by a contractor is grounds for rescission of the contract by the City. SECTION 6. CONTRACTOR'S COMPLIANCE WITH OTHER FEDERAL REGULATIONS. 6.01. Environmental Review. The Contractor, if applicable, agrees to comply with the following regulations insofar as they apply to the performance of this Agreement: 6.01A Clean Air Act, 42, U.S.C., 1857, et seq. 6.01.2 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. - 16 - presence in the United States using the Systematic Alien Verification for Entitlements (SAVE) Program. - 15 - or its - 12 = money of the United States,or a United States Govemement Bond(negotiable)are acceptable substitutes for bond requirements. All bidders awarded a contract in the amount of$5,000 or more must comply with the Contract Compliance Ordinance and have on file with the Human Rights& Relations Department the Contract Compliance Report(Form CC-1). This report shall be in effect for 24 months from the date received by the Human Rights& Relations Department. Any questions regarding the Contract Compliance Ordinance should be directed to the Human Rights&Relations Department at(402)444- 5055. (PLEASE PRINT LEGIBLY OR TYPE) Payment Terms O % _ Firm: P PE6s i 01✓4 L. A/Alr•i-04,41,p44,I"a a Incorporated In: 14. , Delivery(or completion) Name: (-WY een/NI `I' e JSignature: U 019.L K�a�re 6" calendar days following Ti ter �I 'Phone:AO)2/0• Ib)1 1 Fa c 4 oz) 5/Z /J/4 award Address: £'O roe ever ever Ckj 6 ?/ 2-7 Street/P.O.Box City State Zip Email Address: &geA/AJ y ei ott, 141,r'4441L 6.01.3 Environmental Protection Agency (EPA) regulations pursuant to 40 C.F.R. Part 50, as amended. 6.01.4 National Environmental Policy Act of 1969. 6.01.5 HUD Environmental Review Procedures (24 C.F.R. Part 58). 6.01.6 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 the Agreement. 6.01.7 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 forty-five years old or older or that are included on a Federal, State or local historic property list. 6.02 Uniform Relocation Act. The Contractor 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 owners, tenants, businesses and other occupants that are displaced as a result of a federally- assisted project. In the event that the Contractor or its agent displaces any tenant- occupant of the property, it shall immediately, notify the City in writing of the circumstances surrounding said displacement. SECTION 7. RESPONSIBILITIES OF THE CITY. 7.01 Performance Monitoring. The City will monitor the performance standards of the Contractor as stated herein. Substandard performance as determined by the City will constitute non-compliance with this Agreement. If action to correct such substandard performance is not taken by the Contractor within a reasonable period of time after being notified by the City, contract suspension or termination procedures may be initiated. 7.02 Payments. It is expressly agreed and understood that the total amount to be paid by the City under this Agreement shall not exceed $600,000.00 in CDBG funds. The payment of these funds is subject to and conditioned upon actual receipt by the City of the same. Should adequate funding not be available to the City, the City shall notify the Contractor as soon as reasonably possible and the Agreement will be terminated. 7.02.1 Obligation for Payment. In no event shall the City become obligated to make any payments for any work performed, materials furnished, expense incurred, or any other expenditure of any kind whatsoever, unless same is expressly - 17 - - 15 - or its - 12 = money of the United States,or a United States Govemement Bond(negotiable)are acceptable substitutes for bond requirements. All bidders awarded a contract in the amount of$5,000 or more must comply with the Contract Compliance Ordinance and have on file with the Human Rights& Relations Department the Contract Compliance Report(Form CC-1). This report shall be in effect for 24 months from the date received by the Human Rights& Relations Department. Any questions regarding the Contract Compliance Ordinance should be directed to the Human Rights&Relations Department at(402)444- 5055. (PLEASE PRINT LEGIBLY OR TYPE) Payment Terms O % _ Firm: P PE6s i 01✓4 L. A/Alr•i-04,41,p44,I"a a Incorporated In: 14. , Delivery(or completion) Name: (-WY een/NI `I' e JSignature: U 019.L K�a�re 6" calendar days following Ti ter �I 'Phone:AO)2/0• Ib)1 1 Fa c 4 oz) 5/Z /J/4 award Address: £'O roe ever ever Ckj 6 ?/ 2-7 Street/P.O.Box City State Zip Email Address: &geA/AJ y ei ott, 141,r'4441L included in this Agreement, nor shall the City incur any liability hereunder, unless and until the Contractor has timely and fully complied with its duties and obligations hereunder. No payments shall be made for any administrative service incurred the Director deems to be: 7.02.2.1 unacceptable or substandard; or, 7.02.2.2 not in accordance with this Agreement or related contracts as approved for this Project. 7.03 Progress Payments. Progress payments and final payment, as may be authorized by the Director or his designated representative, are subject to: 7.03.1 receipt of requisite financial status reports, and participant and program reports. 7.04 Technical Assistance. The Director shall assist the Contractor in the same manner the Director provides technical assistance to other contractors to ensure compliance with this Agreement. SECTION 8. MUTUAL AGREEMENTS BETWEEN CITY AND CONTRACTOR. 8.01 Release of Information Laws. 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 for the limited purposes stated, and the Contractor further agrees to indemnify and hold harmless the City of Omaha for any liability arising out the improper use by the Contractor of information provided. 8.02 Applicable Laws. Parties to this Agreement shall conform to all existing and applicable City ordinances, resolutions, state laws, federal laws, and all existing and applicable rules and regulations. Nebraska law will govern the term and the performance under this Agreement. 8.03 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. 8.04 Independent Contractor. Nothing contained in this Agreement is intended to, or shall be construed in any manner, as creating or establishing the relationship of employer/employee between the parties. The Contractor shall at all times remain an independent contractor with respect to the services to be performed under this Agreement. The City shall be exempt from payment of all Unemployment - 18 - any payments for any work performed, materials furnished, expense incurred, or any other expenditure of any kind whatsoever, unless same is expressly - 17 - - 15 - or its - 12 = money of the United States,or a United States Govemement Bond(negotiable)are acceptable substitutes for bond requirements. All bidders awarded a contract in the amount of$5,000 or more must comply with the Contract Compliance Ordinance and have on file with the Human Rights& Relations Department the Contract Compliance Report(Form CC-1). This report shall be in effect for 24 months from the date received by the Human Rights& Relations Department. Any questions regarding the Contract Compliance Ordinance should be directed to the Human Rights&Relations Department at(402)444- 5055. (PLEASE PRINT LEGIBLY OR TYPE) Payment Terms O % _ Firm: P PE6s i 01✓4 L. A/Alr•i-04,41,p44,I"a a Incorporated In: 14. , Delivery(or completion) Name: (-WY een/NI `I' e JSignature: U 019.L K�a�re 6" calendar days following Ti ter �I 'Phone:AO)2/0• Ib)1 1 Fa c 4 oz) 5/Z /J/4 award Address: £'O roe ever ever Ckj 6 ?/ 2-7 Street/P.O.Box City State Zip Email Address: &geA/AJ y ei ott, 141,r'4441L Compensation, FICA, retirement, life and/or medical insurance and Worker's Compensation Insurance as the Contractor is an Independent Contractor. 8.05 Captions. Captions used in this Agreement are for convenience and are not used in the construction of this Agreement. 8.06 Merger. This Agreement shall not be merged into any other oral or written agreement, lease or deed of any type. 8.07 Modification. This Agreement and any related documents securing the financing contain 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. 8.08 Assignment. The Contractor may not assign its rights or obligations under this Agreement without the express prior written consent of the City. 8.09 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 upon written direction from authorized representatives of the parties. 8.10 Termination. This Agreement may be suspended or terminated in accordance with 24 C.F.R. 85.43, Enforcement or C.F.R. 85.44, Termination for Convenience (Exhibit "I", attached hereto and incorporated herein by this reference as though fully set forth). 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. 8.11 Reversion of Assets. Upon the expiration of this Agreement, the Contractor shall transfer to the City of Omaha any CDBG funds on hand at the time of expiration and any accounts receivable attributable to the use CDBG funds (24 C.F.R. 570.503(b)(8)). 8.12 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. 8.13 Unenforceable Provisions. Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be in effect to the extent of such prohibition or enforceability without invalidating the remaining provisions hereof or affecting the validity or enforceability of such provision in any other jurisdiction. 8.14 Disclosure of Lobbying. The Contractor shall certify and disclose, to the best of its knowledge and belief, that: - 19- - 17 - - 15 - or its - 12 = money of the United States,or a United States Govemement Bond(negotiable)are acceptable substitutes for bond requirements. All bidders awarded a contract in the amount of$5,000 or more must comply with the Contract Compliance Ordinance and have on file with the Human Rights& Relations Department the Contract Compliance Report(Form CC-1). This report shall be in effect for 24 months from the date received by the Human Rights& Relations Department. Any questions regarding the Contract Compliance Ordinance should be directed to the Human Rights&Relations Department at(402)444- 5055. (PLEASE PRINT LEGIBLY OR TYPE) Payment Terms O % _ Firm: P PE6s i 01✓4 L. A/Alr•i-04,41,p44,I"a a Incorporated In: 14. , Delivery(or completion) Name: (-WY een/NI `I' e JSignature: U 019.L K�a�re 6" calendar days following Ti ter �I 'Phone:AO)2/0• Ib)1 1 Fa c 4 oz) 5/Z /J/4 award Address: £'O roe ever ever Ckj 6 ?/ 2-7 Street/P.O.Box City State Zip Email Address: &geA/AJ y ei ott, 141,r'4441L 8.14.1 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. 8.14.2 If any funds other than federal appropriated hinds 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 of 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. 8.14.3 The language of this certification be included in the award documents for all subawards at all tiers, (including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreements) and that all subrecipients shall certify and disclose accordingly. 8.15 Notices. The City and the Contractor hereby expressly agree that for purposes of notice, including legal service or process, during the term of this Agreement, and for the period of any applicable statute of limitations thereafter, the following named individuals shall be authorized representatives of the parties: 1) City: Planning Director City of Omaha 1819 Farnam Street, Suite1111 Omaha,Nebraska 68183 2) Contractor: Director The Empowerment Network 2221 North 24th Street Omaha,Nebraska 68110 In the event the authorized representative changes during the term of this Agreement, prior written notice will be given to the respective party at the address noted above. 8.16 Applicability. This Agreement shall be binding upon the parties hereto. SECTION 9. DEFAULT PROVISIONS. 9.01 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, -20- orceable Provisions. Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be in effect to the extent of such prohibition or enforceability without invalidating the remaining provisions hereof or affecting the validity or enforceability of such provision in any other jurisdiction. 8.14 Disclosure of Lobbying. The Contractor shall certify and disclose, to the best of its knowledge and belief, that: - 19- - 17 - - 15 - or its - 12 = money of the United States,or a United States Govemement Bond(negotiable)are acceptable substitutes for bond requirements. All bidders awarded a contract in the amount of$5,000 or more must comply with the Contract Compliance Ordinance and have on file with the Human Rights& Relations Department the Contract Compliance Report(Form CC-1). This report shall be in effect for 24 months from the date received by the Human Rights& Relations Department. Any questions regarding the Contract Compliance Ordinance should be directed to the Human Rights&Relations Department at(402)444- 5055. (PLEASE PRINT LEGIBLY OR TYPE) Payment Terms O % _ Firm: P PE6s i 01✓4 L. A/Alr•i-04,41,p44,I"a a Incorporated In: 14. , Delivery(or completion) Name: (-WY een/NI `I' e JSignature: U 019.L K�a�re 6" calendar days following Ti ter �I 'Phone:AO)2/0• Ib)1 1 Fa c 4 oz) 5/Z /J/4 award Address: £'O roe ever ever Ckj 6 ?/ 2-7 Street/P.O.Box City State Zip Email Address: &geA/AJ y ei ott, 141,r'4441L representations or agreements hereof, the City may upon written notice terminate this Agreement or such parts thereof as to this Agreement, and may require repayment of Grant, in part or in full, for any damages caused to the City by reasons of such default and termination. IN WITNESS WHEREOF, the parties have executed this Agreement as of the date indicated below: ATTEST: CITY OF OMAHA: 71//4. ' „ i /7 cS-ay-/ OEjOI/ CITY CLERK Date •`hi R OF I CITY OF OMAHA Date OF THE CITY OF OMAHA / AFRICAN AMERICAN EMPOWERMENT NETWORK, • WITNESS: Inc., on-profit Corporation idt.9 S24,41 By. ' / I(1 . 51F/7 ,07R SignaA�re John Ewing,Jr.,B•. ''r sident Date UJi (;( .DUr+'It 5[Spol Name Y Date APPROVED AS TO FORM: • ASS S AN CITY TTORNEY Date -21 - ontractor shall complete and submit standard Form-LLL, "Disclosure Form to Report Lobbying", in accordance with its instructions. 8.14.3 The language of this certification be included in the award documents for all subawards at all tiers, (including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreements) and that all subrecipients shall certify and disclose accordingly. 8.15 Notices. The City and the Contractor hereby expressly agree that for purposes of notice, including legal service or process, during the term of this Agreement, and for the period of any applicable statute of limitations thereafter, the following named individuals shall be authorized representatives of the parties: 1) City: Planning Director City of Omaha 1819 Farnam Street, Suite1111 Omaha,Nebraska 68183 2) Contractor: Director The Empowerment Network 2221 North 24th Street Omaha,Nebraska 68110 In the event the authorized representative changes during the term of this Agreement, prior written notice will be given to the respective party at the address noted above. 8.16 Applicability. This Agreement shall be binding upon the parties hereto. SECTION 9. DEFAULT PROVISIONS. 9.01 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, -20- orceable Provisions. Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be in effect to the extent of such prohibition or enforceability without invalidating the remaining provisions hereof or affecting the validity or enforceability of such provision in any other jurisdiction. 8.14 Disclosure of Lobbying. The Contractor shall certify and disclose, to the best of its knowledge and belief, that: - 19- - 17 - - 15 - or its - 12 = money of the United States,or a United States Govemement Bond(negotiable)are acceptable substitutes for bond requirements. All bidders awarded a contract in the amount of$5,000 or more must comply with the Contract Compliance Ordinance and have on file with the Human Rights& Relations Department the Contract Compliance Report(Form CC-1). This report shall be in effect for 24 months from the date received by the Human Rights& Relations Department. Any questions regarding the Contract Compliance Ordinance should be directed to the Human Rights&Relations Department at(402)444- 5055. (PLEASE PRINT LEGIBLY OR TYPE) Payment Terms O % _ Firm: P PE6s i 01✓4 L. A/Alr•i-04,41,p44,I"a a Incorporated In: 14. , Delivery(or completion) Name: (-WY een/NI `I' e JSignature: U 019.L K�a�re 6" calendar days following Ti ter �I 'Phone:AO)2/0• Ib)1 1 Fa c 4 oz) 5/Z /J/4 award Address: £'O roe ever ever Ckj 6 ?/ 2-7 Street/P.O.Box City State Zip Email Address: &geA/AJ y ei ott, 141,r'4441L SCHEDULE OF EXHIBITS Agreement Exhibit Location Description A 1.02 Article of Incorporation,Bylaws, Corporate Resolution, Board Members B 1.10, 5.01.1, OMB Circular A-110 5.01.2, 5.03.4, and 5.05.2 C 1.11, 5.03.2.1.3, Neighborhood Revitalization Strategy Areas 5.03.2.1.4 D 1.12, 2.02.6 and Median Family Income Chart 5.03.2.1.4 • E 1.15 Definition-Program Income F 1.15 and 5.01.2 OMB Circular A-122 G 5.03.2.1.7 and Participant Report,Race and Ethnic Data Reporting 5.03.2.1.8 Form(HUD-27061-H) H 5.03.4 Financial Status Report I 8.10 Termination-C.F.R. 85.43 - 85.44 J 5.05.1.1 Equal Opportunity Clause K 5.05.4 Section 3 Clause L 5.05.6.2 Attestation Form for Public Benefit M 5.05.7 Affidavit For Employee Classification Act N 3.01.2 Minority and Women Business Plan O 5.03.2.1.4 City of Omaha Definition of Income P 2.03 and 4.02.2 Project Budget Q 4.01.1.3 OMB Circular No. A-133 -22 - bcontracts, subgrants, and contracts under grants, loans, and cooperative agreements) and that all subrecipients shall certify and disclose accordingly. 8.15 Notices. The City and the Contractor hereby expressly agree that for purposes of notice, including legal service or process, during the term of this Agreement, and for the period of any applicable statute of limitations thereafter, the following named individuals shall be authorized representatives of the parties: 1) City: Planning Director City of Omaha 1819 Farnam Street, Suite1111 Omaha,Nebraska 68183 2) Contractor: Director The Empowerment Network 2221 North 24th Street Omaha,Nebraska 68110 In the event the authorized representative changes during the term of this Agreement, prior written notice will be given to the respective party at the address noted above. 8.16 Applicability. This Agreement shall be binding upon the parties hereto. SECTION 9. DEFAULT PROVISIONS. 9.01 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, -20- orceable Provisions. Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be in effect to the extent of such prohibition or enforceability without invalidating the remaining provisions hereof or affecting the validity or enforceability of such provision in any other jurisdiction. 8.14 Disclosure of Lobbying. The Contractor shall certify and disclose, to the best of its knowledge and belief, that: - 19- - 17 - - 15 - or its - 12 = money of the United States,or a United States Govemement Bond(negotiable)are acceptable substitutes for bond requirements. All bidders awarded a contract in the amount of$5,000 or more must comply with the Contract Compliance Ordinance and have on file with the Human Rights& Relations Department the Contract Compliance Report(Form CC-1). This report shall be in effect for 24 months from the date received by the Human Rights& Relations Department. Any questions regarding the Contract Compliance Ordinance should be directed to the Human Rights&Relations Department at(402)444- 5055. (PLEASE PRINT LEGIBLY OR TYPE) Payment Terms O % _ Firm: P PE6s i 01✓4 L. A/Alr•i-04,41,p44,I"a a Incorporated In: 14. , Delivery(or completion) Name: (-WY een/NI `I' e JSignature: U 019.L K�a�re 6" calendar days following Ti ter �I 'Phone:AO)2/0• Ib)1 1 Fa c 4 oz) 5/Z /J/4 award Address: £'O roe ever ever Ckj 6 ?/ 2-7 Street/P.O.Box City State Zip Email Address: &geA/AJ y ei ott, 141,r'4441L K i NE See of Stote John R Gale - CORP RP ARTICLE OF INCORPORATION IIIIIIIIIIIIIIIIIIIIIIIIIII11111IIIIIIII 1000853488 Pss: 4 OF AFRICAN AMERICAN EMPOWERMENT N Filed: 01/12/2009 02:54 PM AFRICAN AMERICAN EMPOWERMENT NETWORK,INC The undersigned citizens of the State of Nebraska, acting as Incorporators of a corporation organized under the Nebraska Nonprofit Corporation Act, adopt the following Articles of Incorporation: ARTICLE I NAME The name of the corporation is African American Empowerment Network, Inc. ("The Network"). ARTICLE H DURATION The period of the Network's duration is perpetual. ARTICLE III MEMBERSHIP The corporation shall have one or more classes of members, as more specifically provided in its by-laws. ARTICLE IV PURPOSES This is a public benefit corporation organized for the following purposes: A. To accelerate the progress of African Americans by developing and implementing a covenant and strategic plan that empowers African Americans, North Omaha and the City of Omaha to dramatically and tangibly enhance the quality of life and to create a greater future for African American youth. B. To empower individuals and organizations through collective efforts to Connect, Communicate, Coordinate, Collaborate, Create and Celebrate. The Network strives to facilitate positive, collaborative change within the community through the participating individuals and organizations. C. To do everything necessary, proper, advisable or convenient for the accomplishment of the purposes set forth herein, and to do all other things incidental thereto or connected therewith which are not forbidden by the laws of the State of Nebraska, or by these Articles of Incorporation. twork 2221 North 24th Street Omaha,Nebraska 68110 In the event the authorized representative changes during the term of this Agreement, prior written notice will be given to the respective party at the address noted above. 8.16 Applicability. This Agreement shall be binding upon the parties hereto. SECTION 9. DEFAULT PROVISIONS. 9.01 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, -20- orceable Provisions. Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be in effect to the extent of such prohibition or enforceability without invalidating the remaining provisions hereof or affecting the validity or enforceability of such provision in any other jurisdiction. 8.14 Disclosure of Lobbying. The Contractor shall certify and disclose, to the best of its knowledge and belief, that: - 19- - 17 - - 15 - or its - 12 = money of the United States,or a United States Govemement Bond(negotiable)are acceptable substitutes for bond requirements. All bidders awarded a contract in the amount of$5,000 or more must comply with the Contract Compliance Ordinance and have on file with the Human Rights& Relations Department the Contract Compliance Report(Form CC-1). This report shall be in effect for 24 months from the date received by the Human Rights& Relations Department. Any questions regarding the Contract Compliance Ordinance should be directed to the Human Rights&Relations Department at(402)444- 5055. (PLEASE PRINT LEGIBLY OR TYPE) Payment Terms O % _ Firm: P PE6s i 01✓4 L. A/Alr•i-04,41,p44,I"a a Incorporated In: 14. , Delivery(or completion) Name: (-WY een/NI `I' e JSignature: U 019.L K�a�re 6" calendar days following Ti ter �I 'Phone:AO)2/0• Ib)1 1 Fa c 4 oz) 5/Z /J/4 award Address: £'O roe ever ever Ckj 6 ?/ 2-7 Street/P.O.Box City State Zip Email Address: &geA/AJ y ei ott, 141,r'4441L • D. To foster and promote the involvement of its members in civic and charitable endeavors through mutual corporation, collaboration,joint planning and organized execution; and to provide charitable service to the various communities of its membership so as to foster and promote the advancement of each such community. ARTICLE rs_t�a r..tJi� r POWERS The Network shall have and exercise all powers and rights conferred upon nonprofit corporations by the Nebraska Nonprofit Corporations Act and any enlargement of such powers conferred by subsequent legislative acts; and, in addition thereto, the Network shall have and exercise all powers and rights which are not otherwise denied nonprofit corporations by the laws of the State of Nebraska and which are necessary, proper, advisable, or convenient to the attainment of the purposes set forth in Article III above. Notwithstanding any other provisions of these Articles of Incorporation, the Network shall not carry on any other activities not permitted to be carried on (a) by a corporation exempt from income taxation under Section 501 (c) (3) of the Code or (b) by a corporation, contributions to which are deductible under Section 170(c)(2)of the Code. ARTICLE VI BYLAWS TO REGULATE INTERNAL AFFAIRS The Bylaws of the Network shall regulate the internal affairs of the Network,except to the extent otherwise provided in these Articles of Incorporation. ARTICLE VII DISTRIBUTION OF ASSESTS ON DISSOLUTION OR FINAL LIQUIDATION The Network is irrevocably dedicated to and operated exclusively for the purposes stated above, and no part of the income or assets of the Network shall be distributed to or inure the benefit of any individual, including members of the Network. Upon dissolution of the Network, the Board of Directors of the Network shall after paying or making provisions for the payment of all liabilities of the Network, dispose of all assets of the Network exclusively for the purposes of the Network in such a manner as shall at the time qualify under Section 501 (c) (3)of the Code, or to such organization of organizations as shall at the time qualify as an exempt organization or organizations under Section 501 (c) (3)of the Code, as the Board of Directors shall determine. ARTICLE VIII NO POWER TO INFLUENCE LEGISLATION The Network shall not participate in any political campaign for or against any candidate for public office or devote a substantial part of its activities to influencing legislation. which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be in effect to the extent of such prohibition or enforceability without invalidating the remaining provisions hereof or affecting the validity or enforceability of such provision in any other jurisdiction. 8.14 Disclosure of Lobbying. The Contractor shall certify and disclose, to the best of its knowledge and belief, that: - 19- - 17 - - 15 - or its - 12 = money of the United States,or a United States Govemement Bond(negotiable)are acceptable substitutes for bond requirements. All bidders awarded a contract in the amount of$5,000 or more must comply with the Contract Compliance Ordinance and have on file with the Human Rights& Relations Department the Contract Compliance Report(Form CC-1). This report shall be in effect for 24 months from the date received by the Human Rights& Relations Department. Any questions regarding the Contract Compliance Ordinance should be directed to the Human Rights&Relations Department at(402)444- 5055. (PLEASE PRINT LEGIBLY OR TYPE) Payment Terms O % _ Firm: P PE6s i 01✓4 L. A/Alr•i-04,41,p44,I"a a Incorporated In: 14. , Delivery(or completion) Name: (-WY een/NI `I' e JSignature: U 019.L K�a�re 6" calendar days following Ti ter �I 'Phone:AO)2/0• Ib)1 1 Fa c 4 oz) 5/Z /J/4 award Address: £'O roe ever ever Ckj 6 ?/ 2-7 Street/P.O.Box City State Zip Email Address: &geA/AJ y ei ott, 141,r'4441L ARTICLE IX REGISTERED OFFICE AND REGISTERED AGENT The street address of the initial registered office of the Network is 1015 N. 98th Street, Suite 200. Omaha, NE 68114, and the name of its initial registered agent at such address is: Mr. Gregory A.Johnson. The Board of Directors by appropriate resolution shall have the power and authority to change the location of the registered office of the corporation and to change the designation of the registered agent of the corporation. ARTICLE X BOARD OF DIRECTORS The affairs of the Network shall be managed by a board of directors. The number of directors constituting the initial Board of Directors shall be (5) and names and street addresses of the persons who are to serve as the initial Directors are: John Ewing Gregory A. Johnson 13516 Burt Street 1015 N. 98'h St Suite 200 Omaha,NE 68154 Omaha,NE 68114 Twanna Black Rev. Jeremiah McGhee 8212 Vernon Ave. 2401 Lake Street Suite 250 Omaha,NE 68134 Omaha,NE 68110 Teresa Hunter 7709 Girard Circle Omaha,NE 68122 ARTICLE XI ELECTION AND REMOVAL OF DIRECTORS All Directors shall be elected every 3 years, by a majority of the members of the Board, present and voting, in a regular or special meeting of the Board. At the annual meeting of the Board, or at any special meeting call fur such purpose and at which a quorum (as defined in • the Bylaws) is present, any one or more of the directors may be removed with cause by a vote of the majority of the members of the Board present and voting, and a successor may be elected in the manner specified in the Bylaws to fill the vacancy then created. Any Director whose removal has been proposed shall be given an opportunity to be heard at the meeting. ons for the payment of all liabilities of the Network, dispose of all assets of the Network exclusively for the purposes of the Network in such a manner as shall at the time qualify under Section 501 (c) (3)of the Code, or to such organization of organizations as shall at the time qualify as an exempt organization or organizations under Section 501 (c) (3)of the Code, as the Board of Directors shall determine. ARTICLE VIII NO POWER TO INFLUENCE LEGISLATION The Network shall not participate in any political campaign for or against any candidate for public office or devote a substantial part of its activities to influencing legislation. which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be in effect to the extent of such prohibition or enforceability without invalidating the remaining provisions hereof or affecting the validity or enforceability of such provision in any other jurisdiction. 8.14 Disclosure of Lobbying. The Contractor shall certify and disclose, to the best of its knowledge and belief, that: - 19- - 17 - - 15 - or its - 12 = money of the United States,or a United States Govemement Bond(negotiable)are acceptable substitutes for bond requirements. All bidders awarded a contract in the amount of$5,000 or more must comply with the Contract Compliance Ordinance and have on file with the Human Rights& Relations Department the Contract Compliance Report(Form CC-1). This report shall be in effect for 24 months from the date received by the Human Rights& Relations Department. Any questions regarding the Contract Compliance Ordinance should be directed to the Human Rights&Relations Department at(402)444- 5055. (PLEASE PRINT LEGIBLY OR TYPE) Payment Terms O % _ Firm: P PE6s i 01✓4 L. A/Alr•i-04,41,p44,I"a a Incorporated In: 14. , Delivery(or completion) Name: (-WY een/NI `I' e JSignature: U 019.L K�a�re 6" calendar days following Ti ter �I 'Phone:AO)2/0• Ib)1 1 Fa c 4 oz) 5/Z /J/4 award Address: £'O roe ever ever Ckj 6 ?/ 2-7 Street/P.O.Box City State Zip Email Address: &geA/AJ y ei ott, 141,r'4441L ARTICLE XII AMENDMENT These Articles of Incorporation may be amended upon adoption by the Board of Directors of a resolution setting forth the amendment in the manner provided by law; provided, however, no amendment of the Articles may be adopted which change or affects in any way the exempt status of the corporation as an organization existing exclusively for charitable purposes. . ARTICLE XIII INCORPORATORS The names and addresses of the Incorporators are: Mr. Willie Barney 12333 Cuming Street Omaha,NE 68154 Mr. Gregory A. Johnson 1015 N. 98th St. #200 Omaha,NE 68114 Ms. Twanna Black 8212 Vernon Ave. Omaha,NE 68134 Ms.Teresa Hunter 7709 Girard Circle • 1 Omaha,NE 68122 Rev. Jeremiah McGhee 2401 Lake St. #250 Omaha,NE 68110 Mr. John Ewing 13516 Burt Street Omaha,NE 68154 IN WITNESS WHEREOF, the above and foregoing Articles of Incorporation are executed this 15th D y of November 2008. • a -1\( (",lsAfjZ-(1_, Mr. Willie l ine Incor o ator ti-v. Jeremiah McGhee,Incorporator Y� p y�, A (2,4 7 ' -"1\W kik • - M . r�ry Joh��on, Incorporator r. John Ewing, I o orator l,t �n � 1, 1.4-(-- 2 Ms. Tawanna Black,Incorporator Ms. Teresa Hufiter,Incorporator ectors may be removed with cause by a vote of the majority of the members of the Board present and voting, and a successor may be elected in the manner specified in the Bylaws to fill the vacancy then created. Any Director whose removal has been proposed shall be given an opportunity to be heard at the meeting. ons for the payment of all liabilities of the Network, dispose of all assets of the Network exclusively for the purposes of the Network in such a manner as shall at the time qualify under Section 501 (c) (3)of the Code, or to such organization of organizations as shall at the time qualify as an exempt organization or organizations under Section 501 (c) (3)of the Code, as the Board of Directors shall determine. ARTICLE VIII NO POWER TO INFLUENCE LEGISLATION The Network shall not participate in any political campaign for or against any candidate for public office or devote a substantial part of its activities to influencing legislation. which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be in effect to the extent of such prohibition or enforceability without invalidating the remaining provisions hereof or affecting the validity or enforceability of such provision in any other jurisdiction. 8.14 Disclosure of Lobbying. The Contractor shall certify and disclose, to the best of its knowledge and belief, that: - 19- - 17 - - 15 - or its - 12 = money of the United States,or a United States Govemement Bond(negotiable)are acceptable substitutes for bond requirements. All bidders awarded a contract in the amount of$5,000 or more must comply with the Contract Compliance Ordinance and have on file with the Human Rights& Relations Department the Contract Compliance Report(Form CC-1). This report shall be in effect for 24 months from the date received by the Human Rights& Relations Department. Any questions regarding the Contract Compliance Ordinance should be directed to the Human Rights&Relations Department at(402)444- 5055. (PLEASE PRINT LEGIBLY OR TYPE) Payment Terms O % _ Firm: P PE6s i 01✓4 L. A/Alr•i-04,41,p44,I"a a Incorporated In: 14. , Delivery(or completion) Name: (-WY een/NI `I' e JSignature: U 019.L K�a�re 6" calendar days following Ti ter �I 'Phone:AO)2/0• Ib)1 1 Fa c 4 oz) 5/Z /J/4 award Address: £'O roe ever ever Ckj 6 ?/ 2-7 Street/P.O.Box City State Zip Email Address: &geA/AJ y ei ott, 141,r'4441L BYLAWS OF AFRICAN AMERICAN EMPOWERMENT NETWORK, INC ARTICI,E I OFFICES Section 1. Offices. The registered office shall be in the City of Omaha, County of Douglas, State of Nebraska (hereinafter,the "State"). The corporation may also have offices at such other places both within and without the State, as the Board of Directors may from time to time determine or the business of the corporation may require. ARTICLE II MEETINGS OF DIRECTORS Section 1. General. All meetings of the directors shall be held at such place within or without the State as may be designated from time to time by the Board of Directors. Section 2. Annual Meetings. The annual meeting of the directors, commencing with the year 2010 shall be held on"the first Friday of May", if not a legal holiday,and if a legal holiday,then on the next business day following, at 11:00 am, or at such other date and time as shall be designated from time to time by the Board of Directors and stated in the notice of the meeting,at which they shall elect by a plurality vote the Board of Directors, and transact such other business as may properly be brought before the meeting. Written notice of the annual meeting stating the place, date and hour of the meeting shall be given to each director entitled to vote at such meeting not less than ten(10)nor more than sixty(60)days before the date of the meeting. Section 3. Special Meetings. Special meetings of the directors,for any purpose or purposes,unless otherwise prescribed by statute or by the Articles of Incorporation(hereinafter,the "Certificate"), may be called by the President and shall be called by the President or Secretary at the request in writing of a majority of the Board of Directors. Such request shall state the purpose or purposes of the proposed meeting. Written notice of a special meeting stating the place, date and hour of the meeting and the purpose or purposes for which the meeting is called, shall be given not less than ten(10) or more than sixty(60) days before the date of the meeting,to each director entitled to vote at such meeting. Business transacted at any special meeting of directors shall be limited to the purposes stated in the notice. Page 1 of 8 ne. ARTICLE VIII NO POWER TO INFLUENCE LEGISLATION The Network shall not participate in any political campaign for or against any candidate for public office or devote a substantial part of its activities to influencing legislation. which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be in effect to the extent of such prohibition or enforceability without invalidating the remaining provisions hereof or affecting the validity or enforceability of such provision in any other jurisdiction. 8.14 Disclosure of Lobbying. The Contractor shall certify and disclose, to the best of its knowledge and belief, that: - 19- - 17 - - 15 - or its - 12 = money of the United States,or a United States Govemement Bond(negotiable)are acceptable substitutes for bond requirements. All bidders awarded a contract in the amount of$5,000 or more must comply with the Contract Compliance Ordinance and have on file with the Human Rights& Relations Department the Contract Compliance Report(Form CC-1). This report shall be in effect for 24 months from the date received by the Human Rights& Relations Department. Any questions regarding the Contract Compliance Ordinance should be directed to the Human Rights&Relations Department at(402)444- 5055. (PLEASE PRINT LEGIBLY OR TYPE) Payment Terms O % _ Firm: P PE6s i 01✓4 L. A/Alr•i-04,41,p44,I"a a Incorporated In: 14. , Delivery(or completion) Name: (-WY een/NI `I' e JSignature: U 019.L K�a�re 6" calendar days following Ti ter �I 'Phone:AO)2/0• Ib)1 1 Fa c 4 oz) 5/Z /J/4 award Address: £'O roe ever ever Ckj 6 ?/ 2-7 Street/P.O.Box City State Zip Email Address: &geA/AJ y ei ott, 141,r'4441L Section 4. Quorum. The majority of elected directors present in person, shall constitute a quorum at all meetings of the directors for the transaction of business, except as otherwise provided by statute or by the Certificate. If,however, such quorum shall not be present at any meeting of the directors,the directors entitled to vote,present in person, shall have power to • adjourn the meeting to a future date at which a quorum shall be present. At such adjourned meeting at which a quorum shall be present any business may be transacted which might have been transacted at the meeting as originally notified. Notice need not be given of the adjourned meeting if the time and place are announced at the meeting in which the adjournment occurs, If the adjournment is for more than thirty(30) days,or if after the adjournment a new record date is fixed for the adjourned meeting, a notice of the adjourned meeting shall be given to each director entitled to vote at the meeting. Section 5. Voting. When a quorum is present at any meeting,the vote of the majority of the directors having voting power present in person shall decide any question brought before such meeting, unless the question is one upon which by express provision of the statutes or of the Certificate, a different vote is required in which case such express provision shall govern and control the decision of such question. Unless otherwise provided in the Certificate or by statute, each director shall at every meeting of the directors be entitled to one vote in person. Section 6. Written Consent. Unless otherwise provided in the Certificate,any action required to be taken at any annual or special meeting of directors of the corporation, or any action which may be taken at any annual or special meeting of such directors,may be taken without a meeting,without prior notice and without a vote, if a consent in writing,setting forth the action so taken, shall be signed by all the directors. Any such consent shall be filed with the minutes of the corporation. - ARTICLE III BOARD OF DIRECTORS Section 1. Management and Number. The property,business and affairs of the corporation shall be controlled and managed by a Board of Directors. The number of directors to constitute the first Board of Directors is five(5) and such number may be increased or decreased by future action of the Board of Directors. The business of the corporation shall be managed by its Board of Directors, which may exercise all such powers of the corporation and do all such lawful acts and things as are not by statute or by the Certificate or by these bylaws directed or required to be exercised or done by the directors Page 2 of 8 reof or affecting the validity or enforceability of such provision in any other jurisdiction. 8.14 Disclosure of Lobbying. The Contractor shall certify and disclose, to the best of its knowledge and belief, that: - 19- - 17 - - 15 - or its - 12 = money of the United States,or a United States Govemement Bond(negotiable)are acceptable substitutes for bond requirements. All bidders awarded a contract in the amount of$5,000 or more must comply with the Contract Compliance Ordinance and have on file with the Human Rights& Relations Department the Contract Compliance Report(Form CC-1). This report shall be in effect for 24 months from the date received by the Human Rights& Relations Department. Any questions regarding the Contract Compliance Ordinance should be directed to the Human Rights&Relations Department at(402)444- 5055. (PLEASE PRINT LEGIBLY OR TYPE) Payment Terms O % _ Firm: P PE6s i 01✓4 L. A/Alr•i-04,41,p44,I"a a Incorporated In: 14. , Delivery(or completion) Name: (-WY een/NI `I' e JSignature: U 019.L K�a�re 6" calendar days following Ti ter �I 'Phone:AO)2/0• Ib)1 1 Fa c 4 oz) 5/Z /J/4 award Address: £'O roe ever ever Ckj 6 ?/ 2-7 Street/P.O.Box City State Zip Email Address: &geA/AJ y ei ott, 141,r'4441L Section 2. Vacancies. Vacancies and newly created directorships resulting from any increase in the authorized number of directors may be filled by a majority vote of the directors then in office,though less than a quorum, or by a sole remaining director, and the directors so chosen shall hold office until the next annual election and until their successors are duly elected and shall qualify, unless sooner displaced. If there are no directors in office,then an election of directors may be held in the manner provided by statute. If, at the time of filling any vacancy or any newly created directorship,the directors then in office shall constitute less than a majority of the whole Board of Directors(as constituted immediately prior to any such increase),then the appropriate court of the State may summarily order an election to be held to fill any such vacancies or newly created directorships or to replace directors chosen by the directors then in office. Section 3. Locations. The Board of Directors of the corporation may hold meetings,both regular and special, either within or without the State. Section 4. First Meeting. The first meeting of each newly elected Board of Directors shall be held at such time and place as shall be fixed by the vote of the directors at the annual meeting and no notice of such meeting shall be necessary to the newly elected directors in order legally to constitute the meeting,provided a quorum shall be present. In the event of th.e failure of the directors to fix the time or place of such first meeting of the newly elected Board of Directors,or in the event such meeting is not held at the time and place so fixed by the directors,the meeting may be held at such time and place as shall be specified in a notice given as hereinafter provided for special meetings of the Board of Directors,or as shall be specified in a written waiver signed by all of the directors. Section 5. Regular Meetings. Regular meetings of the Board of Directors may be held without notice at such time and at such place as shall from time to time be determined by the Board of Directors. Section 6. Special Meetings. Special meetings of the Board of Directors may be called by the President on two days' notice to each director, either personally or by mail or by email, setting forth the time, place and purpose of the meeting. Special meetings shall be called by the President or Secretary in like manner and on like notice on the written request of two directors. Page3of8 , which may exercise all such powers of the corporation and do all such lawful acts and things as are not by statute or by the Certificate or by these bylaws directed or required to be exercised or done by the directors Page 2 of 8 reof or affecting the validity or enforceability of such provision in any other jurisdiction. 8.14 Disclosure of Lobbying. The Contractor shall certify and disclose, to the best of its knowledge and belief, that: - 19- - 17 - - 15 - or its - 12 = money of the United States,or a United States Govemement Bond(negotiable)are acceptable substitutes for bond requirements. All bidders awarded a contract in the amount of$5,000 or more must comply with the Contract Compliance Ordinance and have on file with the Human Rights& Relations Department the Contract Compliance Report(Form CC-1). This report shall be in effect for 24 months from the date received by the Human Rights& Relations Department. Any questions regarding the Contract Compliance Ordinance should be directed to the Human Rights&Relations Department at(402)444- 5055. (PLEASE PRINT LEGIBLY OR TYPE) Payment Terms O % _ Firm: P PE6s i 01✓4 L. A/Alr•i-04,41,p44,I"a a Incorporated In: 14. , Delivery(or completion) Name: (-WY een/NI `I' e JSignature: U 019.L K�a�re 6" calendar days following Ti ter �I 'Phone:AO)2/0• Ib)1 1 Fa c 4 oz) 5/Z /J/4 award Address: £'O roe ever ever Ckj 6 ?/ 2-7 Street/P.O.Box City State Zip Email Address: &geA/AJ y ei ott, 141,r'4441L Section 7. Quorum. At all meetings of the Board of Directors,a majority of directors shall constitute a quorum for the transaction of business and the act of a majority of the directors present at any meeting at which there is a quorum shall be the act of the Board of Directors, except as may otherwise be specifically provided by statute or by the Certificate. If a quorum shall not be present at any meeting of the Board of Directors,the directors present may • adjourn the meeting from time to time, without notice other than announcement at the meeting, until a quorum shall be present. Section 8. Action by Consent. Unless otherwise restricted by the Certificate, any action required or permitted to be taken at any meeting of the Board of Directors or of any committee thereof may be taken without a meeting, if all members of the Board of Directors or committee,as the case may be, consent thereto in writing, and the writing or writings are filed with the minutes of proceedings of the Board of Directors or committee. Section 9. Meetings by Telephone. Unless otherwise restricted by the Certificate,members of the Board of Directors or of any committee thereof,may participate in a meeting of the Board of Directors or committee by means of conference telephone or similar communications equipment by means of which all persons participating in the meeting by use of such equipment shall constitute presence in person at such meeting. Section 10. Committees,Membership,Powers. The Board of Directors may,by resolution passed by a majority of the whole Board of Directors, designate one or more committees, each committee to consist of one or more of the directors of the corporation. The Board of Directors may designate one or more directors as alternate members of any committee,who may replace any absent or disqualified member at any meeting of the committee. In the absence or disqualification of a member of a committee,the member or members thereof present at any meeting and not disqualified from voting, whether or not he, she or they constitute a quorum,may unanimously appoint another member of the Board of Directors to act at the meeting in the place of any such absent or disqualified member. Any such committee,to the extent provided in the resolution of the Board of Directors,shall have and may exercise all the powers and authority of the Board of Directors in the management of the business and affairs of the corporation, and may authorize the seal of the corporation to be affixed to all papers which may require it;but no such committee shall have the power or authority in reference to amending the Certificate;adopting an agreement of merger or consolidation; recommending to the directors the sale,lease or exchange of all or substantially all of the corporation's property and assets;recommending to the directors a dissolution of the corporation or a revocation of a dissolution; amending the bylaws of the corporation; or increasing or decreasing the membership of the Board of Directors; and, unless the resolution or the Certificate expressly so provide,no such committee shall have the power or authority to declare a dividend or to authorize the issuance of stock. Such committee or committees shall have such name or names as may be determined from time to time by resolution adopted by the Board of Directors. Page 4 of 8 tract Compliance Report(Form CC-1). This report shall be in effect for 24 months from the date received by the Human Rights& Relations Department. Any questions regarding the Contract Compliance Ordinance should be directed to the Human Rights&Relations Department at(402)444- 5055. (PLEASE PRINT LEGIBLY OR TYPE) Payment Terms O % _ Firm: P PE6s i 01✓4 L. A/Alr•i-04,41,p44,I"a a Incorporated In: 14. , Delivery(or completion) Name: (-WY een/NI `I' e JSignature: U 019.L K�a�re 6" calendar days following Ti ter �I 'Phone:AO)2/0• Ib)1 1 Fa c 4 oz) 5/Z /J/4 award Address: £'O roe ever ever Ckj 6 ?/ 2-7 Street/P.O.Box City State Zip Email Address: &geA/AJ y ei ott, 141,r'4441L Section 11. Committees,Minutes. Each committee shall appoint a secretary of each meeting and keep regular minutes of its meetings and report the same to the Board.of Directors. Section 12. Compensation of Directors. The Board of Directors shall not recieved compensaton for serving as a director. The directors may be reimbursed for their expenses, if any,for attendance at each meeting of the Board of Directors. ARTICLE IV NOTICES Section 1. Notices. Whenever,under the provisions of the statutes or of the Certificate or of these bylaws, notice is required to be given to any director, it shall not be construed to mean personal notice, but such notice may be given in writing,by mail, addressed to such director at their address as it appears on the records of the corporation,with postage thereon prepaid, and such notice shall be deemed to be given at the time when the same shall be deposited in the United States mail. Notice to directors may also be given by email. Section 2. Waivers. Whenever any notice is required to be given under the provisions of the statutes or of the Certificate or of these bylaws,a waiver thereof in writing, signed by the person or persons entitled to said notice, whether before or after the time stated therein, shall be deemed equivalent thereto. ARTICLE V OFFICERS Section 1. Designations. The officers of the corporation shall be chosen by the Board of Directors and shall be a President, a Vice President,a Secretary and a Treasurer. The Board of Directors may also choose additional Vice Presidents. Any number of offices may be held by the same person, unless applicable law,the Certificate or these bylaws otherwise provide. Section 2. Term Removal. The Board of Directors at its first meeting and after each annual meeting of the directors shall choose a President,one or more Vice Presidents,a Secretary and a Treasurer. The Board of Directors may appoint such other officers and agents as it shall deem necessary who shall hold their offices for such terms and shall exercise such powers and perform such duties as shall be determined from time to time by the Board of Directors. The officers of the corporation shall hold office until their successors are chosen and qualify. Any officer elected or appointed by the Board of Directors may be removed at any time Page5of8 ss and affairs of the corporation, and may authorize the seal of the corporation to be affixed to all papers which may require it;but no such committee shall have the power or authority in reference to amending the Certificate;adopting an agreement of merger or consolidation; recommending to the directors the sale,lease or exchange of all or substantially all of the corporation's property and assets;recommending to the directors a dissolution of the corporation or a revocation of a dissolution; amending the bylaws of the corporation; or increasing or decreasing the membership of the Board of Directors; and, unless the resolution or the Certificate expressly so provide,no such committee shall have the power or authority to declare a dividend or to authorize the issuance of stock. Such committee or committees shall have such name or names as may be determined from time to time by resolution adopted by the Board of Directors. Page 4 of 8 tract Compliance Report(Form CC-1). This report shall be in effect for 24 months from the date received by the Human Rights& Relations Department. Any questions regarding the Contract Compliance Ordinance should be directed to the Human Rights&Relations Department at(402)444- 5055. (PLEASE PRINT LEGIBLY OR TYPE) Payment Terms O % _ Firm: P PE6s i 01✓4 L. A/Alr•i-04,41,p44,I"a a Incorporated In: 14. , Delivery(or completion) Name: (-WY een/NI `I' e JSignature: U 019.L K�a�re 6" calendar days following Ti ter �I 'Phone:AO)2/0• Ib)1 1 Fa c 4 oz) 5/Z /J/4 award Address: £'O roe ever ever Ckj 6 ?/ 2-7 Street/P.O.Box City State Zip Email Address: &geA/AJ y ei ott, 141,r'4441L by the affirmative vote of a majority if the Board of Directors. Any vacancy occurring in any office of the corporation shall be filled by the Board of Directors. Section 3. Salaries. The salaries of the Executive Director shall he fixed by the Board of Directors: Section 4. The President. The President of the Board of Directors, shall preside at all meetings of the directors. The President may execute all bonds, deeds,mortgages,conveyances, contracts and other instruments,except in cases where the signing and execution thereof shall be expressly delegated by the Board of Directors or by these by-laws to some other officer or agent of the corporation, or shall be required by law otherwise to be signed or executed; In general,the President shall perform all duties incident to the office of President and such other duties as may from time to time be assigned to him by the Board of Directors. The Board of Directors may confer like power on any other person or persons,except those that by statute are conferred exclusively on the President. Section 5. The Vice Presidents. The Vice Presidents shall perform such duties as shall be assigned to them and shall exercise such powers as may be granted to them by the Board of Directors or by the President of the corporation. In the absence of the President the Vice Presidents, in order of their seniority,may perform the duties and exercise the powers of the President with the same force and effect as if performed by the President and shall generally assist the President and shall perform the duties and have the powers prescribed by the Board of Directors from time to time. Section 6. The Secretary. The Secretary shall attend all meetings of the Board of Directors and record all the proceedings of the meetings of the corporation and of the Board of Directors in a book to be kept for that purpose and shall perform like duties for the standing committees when required. The Secretary shall give,or cause to be given,notice of all meetings and special meetings of the Board of Directors, and shall perform such other duties as may be prescribed by the Board of Directors or President,under whose supervision he or she shall be. The Secretary shall have custody of the corporate seal of the corporation and he or she, or an Assistant Secretary, shall have authority to affix the same to any instrument requiring it and when so affixed,it may be attested by his or her signature or by the signature of such Assistant Secretary. The Board of Directors may give general authority to any other officer to affix the seal of the corporation and to attest the affixing by his signature. Section 7. The Treasurer. The Treasurer shall have the custody of the corporate funds and securities and shall keep full and accurate accounts of receipts and disbursements in books belonging to the corporation and shall deposit all moneys and other valuable effects in the name and to the credit of the corporation in such depositories as may be designated by the Board of Page 6 of 8 ificate expressly so provide,no such committee shall have the power or authority to declare a dividend or to authorize the issuance of stock. Such committee or committees shall have such name or names as may be determined from time to time by resolution adopted by the Board of Directors. Page 4 of 8 tract Compliance Report(Form CC-1). This report shall be in effect for 24 months from the date received by the Human Rights& Relations Department. Any questions regarding the Contract Compliance Ordinance should be directed to the Human Rights&Relations Department at(402)444- 5055. (PLEASE PRINT LEGIBLY OR TYPE) Payment Terms O % _ Firm: P PE6s i 01✓4 L. A/Alr•i-04,41,p44,I"a a Incorporated In: 14. , Delivery(or completion) Name: (-WY een/NI `I' e JSignature: U 019.L K�a�re 6" calendar days following Ti ter �I 'Phone:AO)2/0• Ib)1 1 Fa c 4 oz) 5/Z /J/4 award Address: £'O roe ever ever Ckj 6 ?/ 2-7 Street/P.O.Box City State Zip Email Address: &geA/AJ y ei ott, 141,r'4441L Directors. The Treasurer shall disburse the funds of the corporation as may be ordered by the Board of Directors,taking proper vouchers for such disbursements, and shall render to the President and the Board of Directors, at its regular meetings,or when the Board of Directors so requires, an account of all his or her transactions as Treasurer and of the financial condition of the corporation. ARTICLE VI GENERAL PROVISIONS Section 1. Annual Statement. The Board of Directors shall present at each annual meeting, and at any special meeting of the directors when called for by vote of the directors, a full and clear statement of the business and condition of the corporation. Section 2. Checks and Deposits. All checks or demands for money and notes of the corporation shall be signed by such officer or officers or such other person or persons as the Board of Directors may from time to time designate. All funds of the corporation not otherwise employed may be deposited to the credit of the corporation in such banks,trust companies or other depositories as the Board of Directors may from time to time select. Section 3. Fiscal Year. The fiscal year of the corporation shall be fixed by resolution of the Board of Directors. Section 4. Seal. The corporate seal shall have inscribed thereon the name of the corporation,the year of incorporation and the words "Corporate Seal,Nebraska." The seal may be used by causing it or a facsimile thereof to be impressed or affixed or reproduced or otherwise. ARTICLE VII AMENDMENTS Section 1. Amendments. These bylaws may be altered,amended or repealed or new bylaws may be adopted by the Board of Directors, when such power is conferred upon the Board of Directors by the Certificate, at any regular meeting of the of the Board of Directors or at any special meeting of the Board of Directors if notice of such alteration, amendment,repeal or adoption of new bylaws be contained in the notice of such special meeting. Page 7 of 8 oard of Directors, and shall perform such other duties as may be prescribed by the Board of Directors or President,under whose supervision he or she shall be. The Secretary shall have custody of the corporate seal of the corporation and he or she, or an Assistant Secretary, shall have authority to affix the same to any instrument requiring it and when so affixed,it may be attested by his or her signature or by the signature of such Assistant Secretary. The Board of Directors may give general authority to any other officer to affix the seal of the corporation and to attest the affixing by his signature. Section 7. The Treasurer. The Treasurer shall have the custody of the corporate funds and securities and shall keep full and accurate accounts of receipts and disbursements in books belonging to the corporation and shall deposit all moneys and other valuable effects in the name and to the credit of the corporation in such depositories as may be designated by the Board of Page 6 of 8 ificate expressly so provide,no such committee shall have the power or authority to declare a dividend or to authorize the issuance of stock. Such committee or committees shall have such name or names as may be determined from time to time by resolution adopted by the Board of Directors. Page 4 of 8 tract Compliance Report(Form CC-1). This report shall be in effect for 24 months from the date received by the Human Rights& Relations Department. Any questions regarding the Contract Compliance Ordinance should be directed to the Human Rights&Relations Department at(402)444- 5055. (PLEASE PRINT LEGIBLY OR TYPE) Payment Terms O % _ Firm: P PE6s i 01✓4 L. A/Alr•i-04,41,p44,I"a a Incorporated In: 14. , Delivery(or completion) Name: (-WY een/NI `I' e JSignature: U 019.L K�a�re 6" calendar days following Ti ter �I 'Phone:AO)2/0• Ib)1 1 Fa c 4 oz) 5/Z /J/4 award Address: £'O roe ever ever Ckj 6 ?/ 2-7 Street/P.O.Box City State Zip Email Address: &geA/AJ y ei ott, 141,r'4441L ARTICLE VIII INDEMNIFICATION AND INSURANCE Section 1. Indemnification A. The corporation shall indemnify to the full extent authorized or permitted by the general corporation law of the State,as now in effect or as hereafter amended, any person made,or threatened to be made, a party to any threatened,pending or completed action, suit or proceeding(whether civil, criminal,administrative or investigate, including an action by or in the right of the corporation)by reason of the fact that he is or was a director,officer, employee or agent of the corporation or serves or served any other enterprise as such at the request of the corporation. B. The foregoing right of indemnification shall not be deemed exclusive of any other rights to which such persons may be entitled apart from this Article IX. The foregoing , right of indemnification shall continue as to a person who has ceased to be a director, officer,employee or agent and shall inure to the benefit of the heirs, executors and administrators of such a person. Section 2. Insurance. The corporation may purchase and maintain insurance on behalf of any person who is or was a director, officer, employee or agent of the corporation,or is or was serving at the request of the corporation as a director, officer, employee or agent of another corporation, partnership,joint venture,trust or other enterprise against any liability asserted against him or her and incurred by him or her in any such capacity, or arising out of his or her status as such,whether or not the corporation would have the power to indenmify him or her against such liability under the provisions of the general corporation law of the State. bAt dhitaj-ek August 31, 2009 Teresa Hunte p, Secretary Page 8 of 8 at any regular meeting of the of the Board of Directors or at any special meeting of the Board of Directors if notice of such alteration, amendment,repeal or adoption of new bylaws be contained in the notice of such special meeting. Page 7 of 8 oard of Directors, and shall perform such other duties as may be prescribed by the Board of Directors or President,under whose supervision he or she shall be. The Secretary shall have custody of the corporate seal of the corporation and he or she, or an Assistant Secretary, shall have authority to affix the same to any instrument requiring it and when so affixed,it may be attested by his or her signature or by the signature of such Assistant Secretary. The Board of Directors may give general authority to any other officer to affix the seal of the corporation and to attest the affixing by his signature. Section 7. The Treasurer. The Treasurer shall have the custody of the corporate funds and securities and shall keep full and accurate accounts of receipts and disbursements in books belonging to the corporation and shall deposit all moneys and other valuable effects in the name and to the credit of the corporation in such depositories as may be designated by the Board of Page 6 of 8 ificate expressly so provide,no such committee shall have the power or authority to declare a dividend or to authorize the issuance of stock. Such committee or committees shall have such name or names as may be determined from time to time by resolution adopted by the Board of Directors. Page 4 of 8 tract Compliance Report(Form CC-1). This report shall be in effect for 24 months from the date received by the Human Rights& Relations Department. Any questions regarding the Contract Compliance Ordinance should be directed to the Human Rights&Relations Department at(402)444- 5055. (PLEASE PRINT LEGIBLY OR TYPE) Payment Terms O % _ Firm: P PE6s i 01✓4 L. A/Alr•i-04,41,p44,I"a a Incorporated In: 14. , Delivery(or completion) Name: (-WY een/NI `I' e JSignature: U 019.L K�a�re 6" calendar days following Ti ter �I 'Phone:AO)2/0• Ib)1 1 Fa c 4 oz) 5/Z /J/4 award Address: £'O roe ever ever Ckj 6 ?/ 2-7 Street/P.O.Box City State Zip Email Address: &geA/AJ y ei ott, 141,r'4441L • STATE OF NEBRASKA • SECRETARY OF STATE'S OFFICE 1445 "K" STREET • STATE CAPITOL SUITE 1301 • LINCOLN, NE • 68509 BUSINESS SERVICES DIVISION CORPORATIONS UNIFORM COMMERCIAL CODE NOTARY PO.BOX 94608 P.O.BOX 95104 P.O.BOX 95104 (402)471-4079 (402)471-4080 (402)471-2558 FAX:471-3666 FAX:471-4429 FAX:471-4429 JOHN A. GALE www.sos.state.ne.us JUDY JOBMAN Secretary of State Deputy Secretary of State HAYES &ASSOCIATES,LLC WESTROADS POIN i'h 1015 N. 98TH ST. SUITE 200 OMAHA.,NE 68114 January 12,2009 ACKNOWLEDGEMENT OF FILING The document(s) listed below were filed with the Nebraska Secretary of State's Office, Corporation Division. A label has been affixed to each filing signifying the filing stamp for the Nebraska Secretary of State's Office,Corporation Division. This filing label indicates the date and time of the filing and also references a document number that can be used to reference this filing in the future. ACKNOWLEDGEMENT OF FILING FEES RECEIVED Action/Service Company/En&v Name Fee Received Articles Perpetual AFRICAN AMERICAN EMPOWERMENT 10.00 NETWORK,INC:. Per Page Charge AFRICAN_1.MERIC AN EMPOWERMENT 20.00 NETWORK,INC. Total Fees Received $30.00 Gina Streich Filing Officer t him or her and incurred by him or her in any such capacity, or arising out of his or her status as such,whether or not the corporation would have the power to indenmify him or her against such liability under the provisions of the general corporation law of the State. bAt dhitaj-ek August 31, 2009 Teresa Hunte p, Secretary Page 8 of 8 at any regular meeting of the of the Board of Directors or at any special meeting of the Board of Directors if notice of such alteration, amendment,repeal or adoption of new bylaws be contained in the notice of such special meeting. Page 7 of 8 oard of Directors, and shall perform such other duties as may be prescribed by the Board of Directors or President,under whose supervision he or she shall be. The Secretary shall have custody of the corporate seal of the corporation and he or she, or an Assistant Secretary, shall have authority to affix the same to any instrument requiring it and when so affixed,it may be attested by his or her signature or by the signature of such Assistant Secretary. The Board of Directors may give general authority to any other officer to affix the seal of the corporation and to attest the affixing by his signature. Section 7. The Treasurer. The Treasurer shall have the custody of the corporate funds and securities and shall keep full and accurate accounts of receipts and disbursements in books belonging to the corporation and shall deposit all moneys and other valuable effects in the name and to the credit of the corporation in such depositories as may be designated by the Board of Page 6 of 8 ificate expressly so provide,no such committee shall have the power or authority to declare a dividend or to authorize the issuance of stock. Such committee or committees shall have such name or names as may be determined from time to time by resolution adopted by the Board of Directors. Page 4 of 8 tract Compliance Report(Form CC-1). This report shall be in effect for 24 months from the date received by the Human Rights& Relations Department. Any questions regarding the Contract Compliance Ordinance should be directed to the Human Rights&Relations Department at(402)444- 5055. (PLEASE PRINT LEGIBLY OR TYPE) Payment Terms O % _ Firm: P PE6s i 01✓4 L. A/Alr•i-04,41,p44,I"a a Incorporated In: 14. , Delivery(or completion) Name: (-WY een/NI `I' e JSignature: U 019.L K�a�re 6" calendar days following Ti ter �I 'Phone:AO)2/0• Ib)1 1 Fa c 4 oz) 5/Z /J/4 award Address: £'O roe ever ever Ckj 6 ?/ 2-7 Street/P.O.Box City State Zip Email Address: &geA/AJ y ei ott, 141,r'4441L Empowerment Network Board Members Board Chair John Ewing,Jr. Douglas County Treasurer 13516 Burt Street Omaha,NE 68154 402-444-3224 iohnewing@co.douglas.ne.us Vice-Chair Tawanna Black President—Innovations by Design 9929 Hampshire N. Brooklyn Park,MN 55445 612-816-8576 tawanna@tawannablack.com • Secretary Teresa Hunter President and CEO Family Housing Advisory Services 2401 Lake Street Omaha,NE 68110 402-934-6386 teresa@fhasinc.org Treasurer Gregory Johnson Shareholder&Director Hayes&Associates,LLC 1015 N.98th Street Suite 200 Omaha,NE 68114 402-390-2480 giohnson@haves-cpa.com At Large Rev.Jeremiah McGhee Community Advocate 2401 Lake Street Suite 250 Omaha,NE 68110 402-690-6624 ieremiah.ctc@gmail.com Angela Jones Vice President of Human Resources—ConAgra Foods One ConAgra Drive 1-382 Omaha,NE 68102 402-240-5220 angela.iones@conagrafoods.com Eric Butler Vice-President—General Manager Industrial Products Union Pacific Corporation Omaha,NE 68179 402-544-3463 ebutler@up.com David Harris Vice-President. Iowa West Foundation 25 Main Place—Suite 550 Council Bluffs,IA 51503 712-308-1164 dharris@iowawestfoundation.org or not the corporation would have the power to indenmify him or her against such liability under the provisions of the general corporation law of the State. bAt dhitaj-ek August 31, 2009 Teresa Hunte p, Secretary Page 8 of 8 at any regular meeting of the of the Board of Directors or at any special meeting of the Board of Directors if notice of such alteration, amendment,repeal or adoption of new bylaws be contained in the notice of such special meeting. Page 7 of 8 oard of Directors, and shall perform such other duties as may be prescribed by the Board of Directors or President,under whose supervision he or she shall be. The Secretary shall have custody of the corporate seal of the corporation and he or she, or an Assistant Secretary, shall have authority to affix the same to any instrument requiring it and when so affixed,it may be attested by his or her signature or by the signature of such Assistant Secretary. The Board of Directors may give general authority to any other officer to affix the seal of the corporation and to attest the affixing by his signature. Section 7. The Treasurer. The Treasurer shall have the custody of the corporate funds and securities and shall keep full and accurate accounts of receipts and disbursements in books belonging to the corporation and shall deposit all moneys and other valuable effects in the name and to the credit of the corporation in such depositories as may be designated by the Board of Page 6 of 8 ificate expressly so provide,no such committee shall have the power or authority to declare a dividend or to authorize the issuance of stock. Such committee or committees shall have such name or names as may be determined from time to time by resolution adopted by the Board of Directors. Page 4 of 8 tract Compliance Report(Form CC-1). This report shall be in effect for 24 months from the date received by the Human Rights& Relations Department. Any questions regarding the Contract Compliance Ordinance should be directed to the Human Rights&Relations Department at(402)444- 5055. (PLEASE PRINT LEGIBLY OR TYPE) Payment Terms O % _ Firm: P PE6s i 01✓4 L. A/Alr•i-04,41,p44,I"a a Incorporated In: 14. , Delivery(or completion) Name: (-WY een/NI `I' e JSignature: U 019.L K�a�re 6" calendar days following Ti ter �I 'Phone:AO)2/0• Ib)1 1 Fa c 4 oz) 5/Z /J/4 award Address: £'O roe ever ever Ckj 6 ?/ 2-7 Street/P.O.Box City State Zip Email Address: &geA/AJ y ei ott, 141,r'4441L Exe.Director Willie Barney • Ex-officio President&Facilitator Empowerment Network 2221 N.24 Street • Omaha,NE 68110 - 402-290-5627 wbarney@empoweromaha.com 8.05 Captions 8.06 Merger 8.07 Modification 8.08 Assignment 8.09 Strict Compliance 8.10 Termination 8.11 Reversion of Assets 8.12 Indemnification 8.13 Unenforceable Provisions 8.14 Disclosure of Lobbying 8.15 Notices 8.16 Applicability SECTION 9. DEFAULT PROVISIONS 9.01 Remedies SCHEDULE OF EXHIBITS treet. That, the cost of publication of notice of the hearing was $26.00. May 22, 2012 -Resolution No. 675 - Motion to adopt. Carried 7-0. By 4n1 ° Councilmember Adopted MAY 2 2 2012 )- — 0 DEP U Cit Clerk Approved.., . Mayor -4,2 Mayor 8 I .. STATE OF �•. .,. ,,,,.,,.,,,.40,0 NEBRASKA h. o *,-- iiiew}t! �-. ,I United States of America, �i Department of State State of Nebraska 5 ss. ti`' bpi Lincoln, Nebraska ' 1, John A. Gale, Secretary of State of Nebraska do hereby certify; AFRICAN AMERICAN EMPOWERMENT NETWORK, INC. was duly incorporated as a nonprofit corporation under the laws of this state on January 12, 2009 and do further certify that no biennial reports or biennial fees assessed are delinquent; articles of dissolution have not been filed and said corporation is in existence as of the date of this certificate. In Testimony Whereof, 1 have hereunto set my hand and affixed the Great Seal of the State of Nebraska on March 30, 2012. 4. J!tex,________ �4�`- � �xic SECRETARY OF S IA'E'E O ,,°2- -OAF a°° �> ip'r�� Oo9,--74,,,/y/tfp-----° 4, r,„„ f mot/�� --„ \ ,,1, e ig• , ,----, --- .....„ • ,..i,. , , ,40)--:—if 1 =6- 4.11. " �� - "�' This certificate is not to be construed as an endorsement. f ,,I. •..< ifr. `!`■ °a, {;{ ; �,° _ recommendation, or notice of approval of the entity's ��ltij RrH ls` lg6 ''" financial condition or business activities and practices. Council Bluffs,IA 51503 712-308-1164 dharris@iowawestfoundation.org or not the corporation would have the power to indenmify him or her against such liability under the provisions of the general corporation law of the State. bAt dhitaj-ek August 31, 2009 Teresa Hunte p, Secretary Page 8 of 8 at any regular meeting of the of the Board of Directors or at any special meeting of the Board of Directors if notice of such alteration, amendment,repeal or adoption of new bylaws be contained in the notice of such special meeting. Page 7 of 8 oard of Directors, and shall perform such other duties as may be prescribed by the Board of Directors or President,under whose supervision he or she shall be. The Secretary shall have custody of the corporate seal of the corporation and he or she, or an Assistant Secretary, shall have authority to affix the same to any instrument requiring it and when so affixed,it may be attested by his or her signature or by the signature of such Assistant Secretary. The Board of Directors may give general authority to any other officer to affix the seal of the corporation and to attest the affixing by his signature. Section 7. The Treasurer. The Treasurer shall have the custody of the corporate funds and securities and shall keep full and accurate accounts of receipts and disbursements in books belonging to the corporation and shall deposit all moneys and other valuable effects in the name and to the credit of the corporation in such depositories as may be designated by the Board of Page 6 of 8 ificate expressly so provide,no such committee shall have the power or authority to declare a dividend or to authorize the issuance of stock. Such committee or committees shall have such name or names as may be determined from time to time by resolution adopted by the Board of Directors. Page 4 of 8 tract Compliance Report(Form CC-1). This report shall be in effect for 24 months from the date received by the Human Rights& Relations Department. Any questions regarding the Contract Compliance Ordinance should be directed to the Human Rights&Relations Department at(402)444- 5055. (PLEASE PRINT LEGIBLY OR TYPE) Payment Terms O % _ Firm: P PE6s i 01✓4 L. A/Alr•i-04,41,p44,I"a a Incorporated In: 14. , Delivery(or completion) Name: (-WY een/NI `I' e JSignature: U 019.L K�a�re 6" calendar days following Ti ter �I 'Phone:AO)2/0• Ib)1 1 Fa c 4 oz) 5/Z /J/4 award Address: £'O roe ever ever Ckj 6 ?/ 2-7 Street/P.O.Box City State Zip Email Address: &geA/AJ y ei ott, 141,r'4441L ti 1 b:f-- /161/ ..n i!Aua.ii i1]J:3uir's Frmlani.U florae•he Art tni'L•arior;•(Winn of:aiancwenient'and Budge. Search OMB • About J OMB Blog The Budget 1 Manageltieait j Reguintion&Information Policy I Legislative Information j Join OMB I Contact OMB AB 0131— Leadership F3ios CIRCULAR A-no REVISED 11/19/93 As Further Amended OMB organization Chart 9/30/99 • Open Government Plan TO THE HEADS OF EXECUTIVE DEPARTMENTS AND ESTABLISHMENTS ONI l News Releases RSd 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. Di.idtte t State arc'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 Proi;li fe111C:n Federal Finan.^;;I 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 - sde;:'al Information of the statute shall govern. Resources;!";at=a Collection The provisions of the sections of this Circular shall be applied by Federal agencies to recipients.Recipients shall apply Other ipzi;iai 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,it such subrecipients are organizations described in paragraph 1. Privacy Guidance Reports l 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 ul administrative requirements Federal agencies impose on State and local grantees.In addition,subawards arid No FEAR contracts to State or local governments are not covered by this Circular.However,this Circular applies to subawards C.N.4l3 L_ocatcr 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 he 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 5/4/2011 will be adopted by agencies in codified regulations within six months after publication in the Federal Register.Earlier implementation is encouraged • r • Attachment Grants and Agreements with Institutions of Higher Education, Hospitals,and Other Non-Profit Organizations SUBPART A-GENERAL Sec. Purpose. .2 Definitions. .3 Effect on erne!'issuances. • .4 Deviations. .5 Strbawards. SUBPART B-PRE-AWARD REQUIREMENTS .10 Purpose. Proi-award Forms icr applying for Federal assistance _.13 Debarment and suspension. .14'Special award conditions. . Metric.system of measurement .16 Honour oe COTI5e1Witit:fl and Recriveiy Act. • .17 Certifications and representations. • SUBPART C POST-AWARD REQUIREMENTS Financial and Program Management 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 tine program plans. .26 Non--Federal audits. .27 Allowable costs. . • Period of availability of funds. _.29 Conditional'exemptions. Property Standards Purpose of properly standards. • .31 Insurance coverage. http://wvvw.whitehouse.gov/ombicirculars_al 10 5/4/2011 Federal Proi;li fe111C:n Federal Finan.^;;I 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 - sde;:'al Information of the statute shall govern. Resources;!";at=a Collection The provisions of the sections of this Circular shall be applied by Federal agencies to recipients.Recipients shall apply Other ipzi;iai 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,it such subrecipients are organizations described in paragraph 1. Privacy Guidance Reports l 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 ul administrative requirements Federal agencies impose on State and local grantees.In addition,subawards arid No FEAR contracts to State or local governments are not covered by this Circular.However,this Circular applies to subawards C.N.4l3 L_ocatcr 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 he 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 5/4/2011 32 Reel orcpc-ty • • --33 Federal:ly•owned and exempt property. • 35 Supplies end other expeudaole eropeny. _.36 Irlanci t t:prc:pe'.ty __• 37 Property tr st reiationsht r Procurement Standards .40 I-- rpo se a`.prociirement slandc-ids. .. .........-.41 Recipient rU;:nU.n5lbli;ties. • 42 Cedes of conduct. .43 Competition. 44 Procurement proved:res. _.45 Cost and:•;ice analysis. .46 Procurement records. 47 Contraca adrnirristruiion .48 Contract c:'rvi 5?nm Reports and Records _.50 Purpose of reports sad records. _.51 Monitoring and repotting program per`ormence. 52 Financial reporting. • .5:3 Retention:and across requirements for'recards. Termination and Enforcement _.60 Purpose of termination:and enlercernenl. • .61 Termination. 62 Enforcement. SUBPART D-AFTER-THE-AWARD REQUIREMENTS _.70 Purpose. • .71 Closeout procedures. .72 Stibsonuent 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 organisations.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 5/4/2011 andards provided herein,the - sde;:'al Information of the statute shall govern. Resources;!";at=a Collection The provisions of the sections of this Circular shall be applied by Federal agencies to recipients.Recipients shall apply Other ipzi;iai 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,it such subrecipients are organizations described in paragraph 1. Privacy Guidance Reports l 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 ul administrative requirements Federal agencies impose on State and local grantees.In addition,subawards arid No FEAR contracts to State or local governments are not covered by this Circular.However,this Circular applies to subawards C.N.4l3 L_ocatcr 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 he 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 5/4/2011 (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 service:: 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,laces,duty or protective in-b:ansrl insurance,shall he included or excluded from the unit acquisition cost in accordance with the recipients 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 property 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. (1)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 win ch'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 an award or suhaward,and a procurement subcontract under a recipients or subrecipients 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 • heart 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.6300),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 arty 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. • htt :/ www.w p / hitehouse.gov/orb/circulars_a110 5/4/2011 (I)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,fur 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 he 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 try 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 tees 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 there. (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)•Projoct 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 from 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 international 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 riot include government-owned contractor-operated facilities or research centers pr(rviding 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 systeratic use of knowledge and understanding gained from research directed toward the production of useful materials,devices,systems,or methods,including design and development of prbtotypes 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 fnction. (ee)Small awards means a grant or cooperative agreement riot exceeding the small purchase threshold fixed at 41 U.S.C.403(11)(currently$25,000). (ff)Subaward means en 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 instrurnents'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 5/4/2011 under a funding agreement("subject invenhons") as defined in 37 CFR pan 401."Rights to Inventions Made by Nonprofit Organizations and Small Business Firms Under Government Grants,Contracts,and Cooperative • Agreements.' r (ii)Suspension means an action by a Federal awarding agency that temporarily withdraws Federal sponsorship under an 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 art agreement at arty 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)Unliquidatod obligations,for financial reports prepared on a cash basis.means the amount of obligations incurred by the recipient that have riot been paid.For reports prepared an an accrued expenditure basis,they represent the amount of obligations incurred by the recipient for which en 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 front 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 for a given initial period. _.:3 Chest on nlitrr.issuance s.For awards subject to this Circular,all administrative requirements of codified program regulations,program manuals,handbooks and other 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 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 Si.t'./WO:1r17:s.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 tatter,"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 r.rsed 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/ornb/circulars_al 10 5/4/2011 vided.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 instrurnents'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 5/4/2011 (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.0 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 Paint 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 rrrade has been selected by that Slate 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.U.12372. • _.13 I:;ctber:res-t and suspension.Federal awarding agencies and recipients shall comply with the nonprocarrement 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 eward 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 riot 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 measurcena;at.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 he 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 Rea:very Act(iRCRA)(Pub.: 64..580 codified at 4?I.I.S.C.titid2) 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 he given in procurement programs to the purchase of specific products containing recycled materials identified in guidelines developed by the Environmental Protection Agency(EPA)(40 CFP,pads 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 renrctsentatio;::s.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 iir,ancial and program management.Sections_.21 through_.28 prescribe standards for financial ranagement systems,methods for making payments and rules for:satisfying cost sharing and matching requirements,accounting for program income,budget revision approvals,making audits,determining allowabilily of cost,and establishing fund availability. _ .21 Standards for financial management.sysierrrs. (a)Federal awarding agencies shall require recipients to relate financial data to performance data anti 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 otherfhan an.accrual basis, the recipient shall not he 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/circularsal 10 5/4/2011 • (2)Records that identify adequately the source and application of funds for federally-sponsored activities These records shall contain information pertaining to Feiteial awards,authorizations.obligations,unobligatert balances, asset.,outlays,income and interest (3)Effective control over and accountability for all funds,properly and other assets Recipients shall adequately safeguard all such assets and assure they are used solely for authorized purposes. (a)Comparison of outlays with budget amounts for each award.Whenever appropriate,financial information should he 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 try source documentation. (c)Where the Federal Government guarantees or insures the repayment of money borrowed try 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 shall be obtained from companies holding certificates of authority as acceptable sureties,as prescribed in 31 CFR part 223."Surely Companies Doing Business with the United States." .22 Payment. (a)Payment methods shall rnirrirnize the time elapsing between the transfer of funds frorn the United Stales 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 he 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 to a recipienforganization shall he limited to the minimum amounts needed and be timed to he in accordance with the actual,immediate cash requirements of the recipient organization in carrying out the . purpose of the approved program or project:The liming 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 crash needs for all awards made by the Federal awarding agency to the recipient. (1)Advance payment mechanisms include.but arc 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/ciraulars al 10 5/4/2011 g audits,determining allowabilily of cost,and establishing fund availability. _ .21 Standards for financial management.sysierrrs. (a)Federal awarding agencies shall require recipients to relate financial data to performance data anti 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 otherfhan an.accrual basis, the recipient shall not he 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/circularsal 10 5/4/2011 (1)When the reimbursement method is used,the Federal awarding agency shall make payment within 50 days after receipt of the pilling.unless the billing is improper (2)Recipients shall be authorized to submit request for reimbursement at least monthly when electronic lends 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 inay 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 rash disbursements.Tire working capital advance method of payment shall riot be used for recipients unwilling or unable to provide timely advances to their subrecipient to meet the subrecipienl'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. (11)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 failedto 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 riot 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)'rho 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 arid Human Services, Payment Management System,Rockville,MD 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.' (ni)Except as noted elsewhere in this Circular,only the following forms shall be authorized for the recipients in requesting advances and reimpursernents.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://wwvv.whitehouse.gov/omb/circulars a l 10 5/4/2011 ars al 10 5/4/2011 g audits,determining allowabilily of cost,and establishing fund availability. _ .21 Standards for financial management.sysierrrs. (a)Federal awarding agencies shall require recipients to relate financial data to performance data anti 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 otherfhan an.accrual basis, the recipient shall not he 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/circularsal 10 5/4/2011 (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 he 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 rneet Federal needs. - _23 Cast shaii:.y,c:r matchir t. (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. (h)Unrecovered indirect costs may he 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.It a Federal awarding agency authorizes recipients to donate buildings or land for con struction/facilities acquisition projects or long-tens use,the value of the donated property for cost sharing or matching shall he 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 be 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. (a)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 P hitehouse.gov/omb/circulars_a110 5/4/2011 n 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 arid Human Services, Payment Management System,Rockville,MD 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.' (ni)Except as noted elsewhere in this Circular,only the following forms shall be authorized for the recipients in requesting advances and reimpursernents.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://wwvv.whitehouse.gov/omb/circulars a l 10 5/4/2011 ars al 10 5/4/2011 g audits,determining allowabilily of cost,and establishing fund availability. _ .21 Standards for financial management.sysierrrs. (a)Federal awarding agencies shall require recipients to relate financial data to performance data anti 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 otherfhan an.accrual basis, the recipient shall not he 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/circularsal 10 5/4/2011 (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 snatching share shall he reasonable and shall not exceed the fair market value of the property al the time of the donation. • (,q)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 o1 the award,if(1)or(2)apply. (1)It 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 nay 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 lie 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 lime 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)'t'he basis for determining the valuation for.perssonal service,material,equipment,buildings and land shall he documented. _.24 F':ogiarn 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. (h)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. • htt ://www.white u e. v p ho s go /omb/circulars_a110 5/4/2011 t 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 P hitehouse.gov/omb/circulars_a110 5/4/2011 n 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 arid Human Services, Payment Management System,Rockville,MD 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.' (ni)Except as noted elsewhere in this Circular,only the following forms shall be authorized for the recipients in requesting advances and reimpursernents.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://wwvv.whitehouse.gov/omb/circulars a l 10 5/4/2011 ars al 10 5/4/2011 g audits,determining allowabilily of cost,and establishing fund availability. _ .21 Standards for financial management.sysierrrs. (a)Federal awarding agencies shall require recipients to relate financial data to performance data anti 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 otherfhan an.accrual basis, the recipient shall not he 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/circularsal 10 5/4/2011 (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-f ederal 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(h)(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(h)(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. (t)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 trom the sale of property shall be handled in accordance with the requirements of the Property Standards (See Sections,..,.,.,._,.30 through..........37). (h)Unless Federal awarding agency regulations or the terms and condition of the award provide otherwise,recipients shall have no obligation to the Federal Government with respect to program income earned from license tees and royalties for copyrighted material,patents,patent applications,trademarks,and inventions produced under an award. I-lowever,Patent and Trademark Amendments(35 U.S.G.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 fur 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_all 0 5/4/2011 .gov/omb/circulars_a110 5/4/2011 n 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 arid Human Services, Payment Management System,Rockville,MD 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.' (ni)Except as noted elsewhere in this Circular,only the following forms shall be authorized for the recipients in requesting advances and reimpursernents.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://wwvv.whitehouse.gov/omb/circulars a l 10 5/4/2011 ars al 10 5/4/2011 g audits,determining allowabilily of cost,and establishing fund availability. _ .21 Standards for financial management.sysierrrs. (a)Federal awarding agencies shall require recipients to relate financial data to performance data anti 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 otherfhan an.accrual basis, the recipient shall not he 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/circularsal 10 5/4/2011 (3)The absence for more than three months,or a 25 per cent 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 .enpense. (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 OMB. (e)Except for requirements listed inparagraph's c)1)and c 4 of this section,Federal awardingagencies are q ( ( ) Ol ) 9 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 anyone 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 hot 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 aware 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. • http://www.whitehouse.gov/ornb/circulars_al 10 5/4/2011 g 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_all 0 5/4/2011 .gov/omb/circulars_a110 5/4/2011 n 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 arid Human Services, Payment Management System,Rockville,MD 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.' (ni)Except as noted elsewhere in this Circular,only the following forms shall be authorized for the recipients in requesting advances and reimpursernents.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://wwvv.whitehouse.gov/omb/circulars a l 10 5/4/2011 ars al 10 5/4/2011 g audits,determining allowabilily of cost,and establishing fund availability. _ .21 Standards for financial management.sysierrrs. (a)Federal awarding agencies shall require recipients to relate financial data to performance data anti 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 otherfhan an.accrual basis, the recipient shall not he 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/circularsal 10 5/4/2011 (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 from 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 5/4/2011 l advances deposited in interest bearing accounts shall be remitted annually to Department of Health arid Human Services, Payment Management System,Rockville,MD 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.' (ni)Except as noted elsewhere in this Circular,only the following forms shall be authorized for the recipients in requesting advances and reimpursernents.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://wwvv.whitehouse.gov/omb/circulars a l 10 5/4/2011 ars al 10 5/4/2011 g audits,determining allowabilily of cost,and establishing fund availability. _ .21 Standards for financial management.sysierrrs. (a)Federal awarding agencies shall require recipients to relate financial data to performance data anti 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 otherfhan an.accrual basis, the recipient shall not he 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/circularsal 10 5/4/2011 (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 Stales,Local Governments, and Non-Profit Organizations" (c)For-profit hospitals not covered by the audit provisions of revised OMB Circular A-133 shall 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 governrnents is determined in accordance with the provisions of OMB Circular A-87,"Cost Principles for Stale,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 exernptions would be from all but the allocability of costs provisions of OMB Circulars A-87(Attachment A,subsection C.3)."Cost Principles fur 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 Slate'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 ' subrec:ipients. 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_a110 5/4/2011 irculars a l 10 5/4/2011 ars al 10 5/4/2011 g audits,determining allowabilily of cost,and establishing fund availability. _ .21 Standards for financial management.sysierrrs. (a)Federal awarding agencies shall require recipients to relate financial data to performance data anti 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 otherfhan an.accrual basis, the recipient shall not he 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/circularsal 10 5/4/2011 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. .:3 i IrrauCrice coverage.Recipients shall,at a minimum;provide the equivalent insurance coverage for real property and equipment acquired.with Federal tends as provided to property owned by the recipient.l'ederally-owned property need not be insured unless required by the terms and conditions of the award. ___32 Real prcpeity.Each Federal awarding agency shall prescribe requirements for recipients concerning the use • and disposition of real property acquired in whole or in part under awards.Unless otherwise provided by statute,such requirements,at a minimum,strati contain the following. • • (a)Title to real property shall vest in the recipient subject to the condition that the recipient shall rise 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 properly 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 property 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 art 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 I edere:ily-owner'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 shalt 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 1..1.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 he 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 properly is"exempt property"Should a Federal awarding agency not establfsh cohditions,title to exempt property upon acquisition shall vest in the recipient without • further obligation to the Federal Government. • http://www.whitehouse.gov/omb/circulars_al 10 5/4/2011 .whitehouse.gov/omb/circulars_a110 5/4/2011 irculars a l 10 5/4/2011 ars al 10 5/4/2011 g audits,determining allowabilily of cost,and establishing fund availability. _ .21 Standards for financial management.sysierrrs. (a)Federal awarding agencies shall require recipients to relate financial data to performance data anti 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 otherfhan an.accrual basis, the recipient shall not he 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/circularsal 10 5/4/2011 .34 F.::riur;;ee'. . (a) I tic to equipment acquired by a recipient with Federal tends 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 be 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 try 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 or the following. (1)Equipment records shall be maintained accurately and shall include the following information. (i)A description of the equipment. • (ii)Manufacturer's 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 5/4/2011 ed to compensation for its attributable percentage of the current fair market value of the property. _.33 I edere:ily-owner'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 shalt 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 1..1.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 he 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 properly is"exempt property"Should a Federal awarding agency not establfsh cohditions,title to exempt property upon acquisition shall vest in the recipient without • further obligation to the Federal Government. • http://www.whitehouse.gov/omb/circulars_al 10 5/4/2011 .whitehouse.gov/omb/circulars_a110 5/4/2011 irculars a l 10 5/4/2011 ars al 10 5/4/2011 g audits,determining allowabilily of cost,and establishing fund availability. _ .21 Standards for financial management.sysierrrs. (a)Federal awarding agencies shall require recipients to relate financial data to performance data anti 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 otherfhan an.accrual basis, the recipient shall not he 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/circularsal 10 5/4/2011 (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 iced 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 he 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 �I equipment.Any loss,damage.or theft of equipment shall he investigated and fully documented;it 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 prograrn 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 he 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 al 10 5/4/2011 the Federal Technology Transfer Act(15 1..1.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 he 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 properly is"exempt property"Should a Federal awarding agency not establfsh cohditions,title to exempt property upon acquisition shall vest in the recipient without • further obligation to the Federal Government. • http://www.whitehouse.gov/omb/circulars_al 10 5/4/2011 .whitehouse.gov/omb/circulars_a110 5/4/2011 irculars a l 10 5/4/2011 ars al 10 5/4/2011 g audits,determining allowabilily of cost,and establishing fund availability. _ .21 Standards for financial management.sysierrrs. (a)Federal awarding agencies shall require recipients to relate financial data to performance data anti 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 otherfhan an.accrual basis, the recipient shall not he 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/circularsal 10 5/4/2011 (1)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 invite known tci the recipient in writing. (ii)The Federal awarding agency shall issue disposition instructions within 120 calendar days atter 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 take title.the equipment shall be subject to the provisions for federally-owned equipment. • .35 St apties and ether 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 riot 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. .30 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. • (h)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 he 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://vvww.whitehouse.gov/omb/circulars_al 10 5/4/2011 v/omb/circulars al 10 5/4/2011 the Federal Technology Transfer Act(15 1..1.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 he 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 properly is"exempt property"Should a Federal awarding agency not establfsh cohditions,title to exempt property upon acquisition shall vest in the recipient without • further obligation to the Federal Government. • http://www.whitehouse.gov/omb/circulars_al 10 5/4/2011 .whitehouse.gov/omb/circulars_a110 5/4/2011 irculars a l 10 5/4/2011 ars al 10 5/4/2011 g audits,determining allowabilily of cost,and establishing fund availability. _ .21 Standards for financial management.sysierrrs. (a)Federal awarding agencies shall require recipients to relate financial data to performance data anti 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 otherfhan an.accrual basis, the recipient shall not he 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/circularsal 10 5/4/2011 (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 tindinns,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 (R)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 usedi, to identity 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 (13)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 properly without approval of the Federal awarding agency.Wherr 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 In record liens or other appropriate notices of record to indicate that personal or real property has been acgciired or improved with Federal funds and that use and disposition conditions apply to the property. Procurement Standards _.40 Purpose of prdcurement standards.Sections_.41 through_.4f3 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 hinds.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 Rntc±pirrnt responsibilities.The standards contained in this section do not relieve the recipient of the contractual responsibilities arising under its con tract(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 tin 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 it a real or apparent conflict of interest would be involved.Such a conflict would arise when the employee,officer,er 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/circul ars_a l 10 5/4/2011 rs a l 10 5/4/2011 ars al 10 5/4/2011 g audits,determining allowabilily of cost,and establishing fund availability. _ .21 Standards for financial management.sysierrrs. (a)Federal awarding agencies shall require recipients to relate financial data to performance data anti 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 otherfhan an.accrual basis, the recipient shall not he 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/circularsal 10 5/4/2011 A A. . . .. _ . , J ., y „ , lll,l ,srru IluLLa J%JV/.J% J Ill_ VS1111G CJvu... ray.,e Li UI L substantial of 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 mariner 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 le 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,al 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.4rfferor roust 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 thal 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 (h)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;minorityowned firms,and women's business enterprises are used to the fullest extent practicable. • htt ://www.whitehouse. ov/omb/circulars al P g 5/4/2011 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 tin 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 it a real or apparent conflict of interest would be involved.Such a conflict would arise when the employee,officer,er 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/circul ars_a l 10 5/4/2011 rs a l 10 5/4/2011 ars al 10 5/4/2011 g audits,determining allowabilily of cost,and establishing fund availability. _ .21 Standards for financial management.sysierrrs. (a)Federal awarding agencies shall require recipients to relate financial data to performance data anti 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 otherfhan an.accrual basis, the recipient shall not he 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/circularsal 10 5/4/2011 (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 F.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 impleritentation 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 he 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,allocability and allowability_ • http://www.whitehouse.gov/omb/circulars a l 10 5/4/2011 b/circulars al P g 5/4/2011 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 tin 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 it a real or apparent conflict of interest would be involved.Such a conflict would arise when the employee,officer,er 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/circul ars_a l 10 5/4/2011 rs a l 10 5/4/2011 ars al 10 5/4/2011 g audits,determining allowabilily of cost,and establishing fund availability. _ .21 Standards for financial management.sysierrrs. (a)Federal awarding agencies shall require recipients to relate financial data to performance data anti 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 otherfhan an.accrual basis, the recipient shall not he 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/circularsal 10 5/4/2011 • 46 f':o.'urcmc.. : ceres Procurement records am: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 i;crlract 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 o1 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 hid 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 o1 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)Mere 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.(Vioniter ng aril 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 he 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://wvvw.whitehouse.gov/omb/circulars_al 10 5/4/2011 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 otherfhan an.accrual basis, the recipient shall not he 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/circularsal 10 5/4/2011 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 teu of these requirements The final performance reports are due 90 calendar days after the expiration or lei rnination 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 tor 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 goals 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. (1)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 shalt 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 fur obtaining financial information from recipients. • (1)SF-2119 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 recipients 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. 1 (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 he approved by the Federal awarding agency upon request of the recipient. (2)SF-272,Report of Federal Cash Transactions. • http://wvvvv.whitehouse.gov/omb/circulars_al 10 5/4/2011 pts 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.(Vioniter ng aril 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 he 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://wvvw.whitehouse.gov/omb/circulars_al 10 5/4/2011 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 otherfhan an.accrual basis, the recipient shall not he 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/circularsal 10 5/4/2011 k_.11\ •V L..,J J /-1-I .1 1\lam v1JLJJ J 1/ 17/JJ r» J ul / rii I v. • (r)When lands are advanced to necipienis the Feder al awarding agency shall require each recipient to submit the SF-272 and,when necessary,its continuation sheet.S1-272a.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,F ederal 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 he 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. • (It)When this 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 standard;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 tip 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 awanting agencies may provide computer or elecctronic outputs to recipients when such expedites or contributes to the accuracy of reporting. • •.53 f•Ictent on and access requirements to:records. . (a)This section sets forth requirements for record retention and access to records for awards to recipients.Federal awarding agencies shall not impose any other record retention or access requirements upon recipients. • (b)Financial records,supporting document;,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 tinancial 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. http://www.whitehouse.gov/omb/circulars_al 10 5/4/2011 rough_.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.(Vioniter ng aril 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 he 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://wvvw.whitehouse.gov/omb/circulars_al 10 5/4/2011 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 otherfhan an.accrual basis, the recipient shall not he 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/circularsal 10 5/4/2011 (4)Indirect cost rate proposals,cost allocations plans,etc as specified in paragraph ,.. .53(g). • tc)Copies of original records may be substituted for the original records it authorized by the Federal awarding agency (d)The Federal awarding agency shall request transfer of certain records to its custody trom 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. (f)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 chargehack 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 riot submitted for negotiation..lt 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). (h)If costs are allowed under an award,the responsibilities of the recipient referred to in paragraph 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. http://www.whitehouse.gov/ornb/circulars_a.1 10 5/4/2011 ormance and the necessary standard reporting forms.They also set forth record retention requirements. ,,,._.._.51.(Vioniter ng aril 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 he 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://wvvw.whitehouse.gov/omb/circulars_al 10 5/4/2011 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 otherfhan an.accrual basis, the recipient shall not he 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/circularsal 10 5/4/2011 (a)Remedies for noncompliance.If a recipient materially fails 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 snatching 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)1 ake other remedies that may'be legally available. • (h)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 aster 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 suspensiorrunderE.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 conditions of 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 unrefurned amounts that become delinquent debts. .. (e)Vdthen 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 properly 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 notbeen 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. • http://www.whitehouse.gov/omb/circulars_al 1 0 5/4/2011 d reporting forms.They also set forth record retention requirements. ,,,._.._.51.(Vioniter ng aril 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 he 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://wvvw.whitehouse.gov/omb/circulars_al 10 5/4/2011 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 otherfhan an.accrual basis, the recipient shall not he 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/circularsal 10 5/4/2011 (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)Record,retention as required in Section .53. (b)After closeout of an award,a relationship created under 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)Arty 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 S2000 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 pad 3,"Contractors and Subcontractors on Public Building or Public Work Financed in Wrote 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 ally 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$20D0 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.lit addition, contractors shall.be required to pay wages riot 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 he 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_al10 5/4/2011 onsidering the recommendations on disallowed costs resulting from the final audit. • 72 Subsequent adjustments and continuing responsibilities. • http://www.whitehouse.gov/omb/circulars_al 1 0 5/4/2011 d reporting forms.They also set forth record retention requirements. ,,,._.._.51.(Vioniter ng aril 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 he 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://wvvw.whitehouse.gov/omb/circulars_al 10 5/4/2011 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 otherfhan an.accrual basis, the recipient shall not he 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/circularsal 10 5/4/2011 4 • 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 rnectlanic 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'A times 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 he required to work in surroundings or Linder 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 part 401,"Rights to Inventions Made by Nonprofit Organizations and Smalt 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 froin 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 12669,"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 Pap Share/Bcokrriark ;I'rvJ - 1:.:1i5:..! USA lix" .Sla^:rx!br;t. <.,,. ,.ec: Apply!;r:a Jot.: • http://www.whitehouse.gov/omb/circulars_a110 • • 5/4/2011 e 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_al10 5/4/2011 onsidering the recommendations on disallowed costs resulting from the final audit. • 72 Subsequent adjustments and continuing responsibilities. • http://www.whitehouse.gov/omb/circulars_al 1 0 5/4/2011 d reporting forms.They also set forth record retention requirements. ,,,._.._.51.(Vioniter ng aril 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 he 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://wvvw.whitehouse.gov/omb/circulars_al 10 5/4/2011 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 otherfhan an.accrual basis, the recipient shall not he 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/circularsal 10 5/4/2011 • Neighborhood Revitalization Strategy Areas iuY(lub 1•;,�, , Y-o., spettrV`1 ---:. .;,.:,..:=';t.4 • Glrard; '1 ! _, �M „__. . T..h_?...-:...._.......:.zebra .). FV� sLJ 0.....__.` ..�``l' G1irtls K . ;...... .r s :21G...'L o/ • Asa a sas',kCanslas_ ,._ _ rttAll... ...,._;... ' P' • �a on. v � ,�c;amdei�;r„ � I _..__.a ......;....� ,'.I'••�•I 1 T `-.Ca r � 1 1.�„ -J r t i�y,� l ) -;: ...� r r.L.i i' -. 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I �,... t...i, . ,e-ICai t "�._. i Vintarrl i;; --. ‘.. ,...:..f ,,..„„--,.?.44Th 1. :t ; - liii�t%r cle1 _ �i !,, (.j.c- . -_-4 �' 1 fi ; •� ' ''.. w 1st li+l-`ln"� hPlil _ tt"=�� .: 1 to A."1 q..<... • 4 i 7 C I o0, aago- A9x,-2t�d � ......._. -� 5)[ ti4,� 'I1.1q �`'� t(.°i._ f DaYr4n t G r r. rl w / arsonj i ......._ • C:+ . {_ �.:,.. .l•kl Orchard- �'_..:, .IMP .ram /•� . . y��. ._. . 5. :� �� South NRSA b . �... •s N j 1 i } }� ...:��t r j��i, f4- KT iy { W T Cafe ' arnson: { S 0 NRSA Boundary 12669,"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 Pap Share/Bcokrriark ;I'rvJ - 1:.:1i5:..! USA lix" .Sla^:rx!br;t. <.,,. ,.ec: Apply!;r:a Jot.: • http://www.whitehouse.gov/omb/circulars_a110 • • 5/4/2011 e 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_al10 5/4/2011 onsidering the recommendations on disallowed costs resulting from the final audit. • 72 Subsequent adjustments and continuing responsibilities. • http://www.whitehouse.gov/omb/circulars_al 1 0 5/4/2011 d reporting forms.They also set forth record retention requirements. ,,,._.._.51.(Vioniter ng aril 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 he 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://wvvw.whitehouse.gov/omb/circulars_al 10 5/4/2011 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 otherfhan an.accrual basis, the recipient shall not he 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/circularsal 10 5/4/2011 c.,) C 0 (0 O "O N N >CC" 10 4:1) >+ >, b -0 > O C:) O O O C:) O O O C:) O C:) ••E E a a O U) U) O O U) O O U) O U) U) C coa) 4 0 N CO N- U) At M O CO O C co Cc 00 1� to N Oi 6 c'M CO I` M O C a T- CO CO I-- co co a) O c- N N M O O m Eft Eft Eft Eft Eft Eft (f) Es) Eft Eft Eft Eft V a .3 t- O o co o ., a) 0 C) O O O O O O O O O O O O c U) 0 U) 0 U) U) CD U) U C:)O 0 ) -� O N M U) N CA 1� 'r N. 00 U) Cr) U) 00 U) O O 1� 1` N 6O 6 N Eft 1` •- r U) U) CO 1- I` CO CO O) O 0 c- %- N M = O Eft Ef3 Eft Eft Eft Eft Eft r a) E O I- Hre Eft Eft tf? 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C g 1 I O O O O O O O O O O O co o U) O U) U) O O O U) U) U7 O O -+•� U o CI O N M N 6) CO M O (� U) N E a3 t a) 00 M LO N- Cf ' Cr; d CO 00 O •- M L. fa 5 C) Q.r• r- r- N N N N N CO CO CO CO - 2" a) Eft 69- Eft Eft Eft Eft Eft Eft Eft Eft Eft Eft C (13 Co _-C LL 00 La O E O ' I— o co in E ., = N (� E N CC ti v Es (/) N a) C6 O '�' _ ..0 N_ so CL 0 N I--- -p Il, 2 cis O.O N cc) "ci' U) co 1` co co O - N d 0) _CE so•E I"' c- .� rn 4•- (13 1` O li Z cco O W E • http://www.whitehouse.gov/omb/circulars_a110 • • 5/4/2011 e 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_al10 5/4/2011 onsidering the recommendations on disallowed costs resulting from the final audit. • 72 Subsequent adjustments and continuing responsibilities. • http://www.whitehouse.gov/omb/circulars_al 1 0 5/4/2011 d reporting forms.They also set forth record retention requirements. ,,,._.._.51.(Vioniter ng aril 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 he 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://wvvw.whitehouse.gov/omb/circulars_al 10 5/4/2011 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 otherfhan an.accrual basis, the recipient shall not he 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/circularsal 10 5/4/2011 EXHIBIT E PROGRAM INCOME "Program income" means gross income received by the Recipient or a Subrecipient directly generated from the uses of CDBG/HOME and other federal funds. When such income is generated by an activity that is only partially assisted with CDBG/HOME and other federal funds, the income shall be prorated to reflect the percentage of CDBG/HOME and other federal funds used. (1) Program income includes,but is not limited to the following: (i) Proceeds from the disposition by sale or long term lease of real property purchased or improved with CDBG/HOME and other federal funds; (ii) Proceeds from the disposition of equipment purchased with CDBG/HOME and other federal funds; (iii) Gross income from the use or rental of real or personal property acquired by the Recipient or a Subrecipient with CDBG/HOME and other federal funds, less the costs incidental to the generation of such income; (iv) Gross income from the use or rental of real property owned by the Recipient or a Subrecipient that was constructed or improved with CDBG/HOME and other federal funds, less the costs incidental to the generation of such income; (v) Payments of principal and interest on loans made using CDBG/HOME and other federal funds; (vi) Proceeds from the sale of loans made with CDBG/HOME and other federal funds; (vii) Proceeds from the sale of obligations secured by loans made with CDBG/HOME and other federal funds; (viii) Interest earned on funds held in a revolving fund account; (ix) Interest earned on program income pending disposition of such income; and (x) Funds collected through special assessments made against properties owned and occupied by households not of low- and moderate-income, where such assessments are used to recover all or part of the CDBG/HOME and other federal portion of a public improvement. (2) Program income does not include interest earned (except for interest described in §570.513) on cash advances from the US Treasury. Such interest shall be remitted to HUD for transmittal to the US Treasury and will not be reallocated under Section 106(c) or(d) of the Act. Examples of other receipts that are not considered program income are proceeds from fundraising activities carried out by Subrecipients receiving CDBG/HOME and other federal assistance; funds collected through special assessments used to recover the non-CDBG/HOME and other federal portion of a public improvement; and proceeds from the disposition of real property acquired or improved with CDBG/HOME and other federal funds when such disposition occurs after the applicable time period specified in §570.503(b)(8) for Subrecipient-controlled property or §570.505 for Recipient-controlled property for CDBG program funds and §92.503 for HOME program funds. i EQUAL HOUSING OPPORTUNITY Revised 1/11/06 1 I O O O O O O O O O O O co o U) O U) U) O O O U) U) U7 O O -+•� U o CI O N M N 6) CO M O (� U) N E a3 t a) 00 M LO N- Cf ' Cr; d CO 00 O •- M L. fa 5 C) Q.r• r- r- N N N N N CO CO CO CO - 2" a) Eft 69- Eft Eft Eft Eft Eft Eft Eft Eft Eft Eft C (13 Co _-C LL 00 La O E O ' I— o co in E ., = N (� E N CC ti v Es (/) N a) C6 O '�' _ ..0 N_ so CL 0 N I--- -p Il, 2 cis O.O N cc) "ci' U) co 1` co co O - N d 0) _CE so•E I"' c- .� rn 4•- (13 1` O li Z cco O W E • http://www.whitehouse.gov/omb/circulars_a110 • • 5/4/2011 e 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_al10 5/4/2011 onsidering the recommendations on disallowed costs resulting from the final audit. • 72 Subsequent adjustments and continuing responsibilities. • http://www.whitehouse.gov/omb/circulars_al 1 0 5/4/2011 d reporting forms.They also set forth record retention requirements. ,,,._.._.51.(Vioniter ng aril 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 he 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://wvvw.whitehouse.gov/omb/circulars_al 10 5/4/2011 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 otherfhan an.accrual basis, the recipient shall not he 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/circularsal 10 5/4/2011 F mat:;.'h;;ates Contort 1..; ROME:•The Administration•Office oft Management and Budget Search OMB • • About I OMB Blog I The Budget ! Management 1 Regulation&Information Policy I Legislative information ) ,Toin OMB. I 'ContactOMB • AliOtrir L 3JB-ship Bios . • CIRCULAR.NO. A-122 Revised May 10, 2004 OMB Organization Chart TO THE HEADS OF EXECUTIVE DEPARTMENTS AND ESTABLISHMENTS Open Government Plan . OMB News Releases SUBJECT: Cost Principles for Non-Profit Organizations RS;Feeds 1.Purpose.This Circular establishes principles for determining costs of grants,contracts and other agreements with inteliec:ivai Properly non-profit organizations.It does not apply to'colleges and universities which are covered by Office of Management and 4 1Cy Info Budget(OMB)Circular A•.21,"Cost Principles for Educational Institutions";State,local,and federally recognized Indian ge, Bulletins 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 Circulars costs except where restricted or prohibited by law.The principles do not attempt to prescribe the extent of cost sharing Budget , or matching on grants,contracts.or other agreements.However,such cost sharing or matching shall not be State and Locall accomplished through arbitrary limitations on individual cost elements by Federal agencies.Provision for profit or other Laovern merit z increment above cost is outside the scope of this Circular. Educational end Non- Profit Institutions 2.Supersession.This Circular supersedes cost principles issued by individual agencies for non-profit organizations. rederai Procurement Fediri'ui Financial :3.Applicability. Menagern,ent Federal Information a. These principles shall be used byall Federal agencies in determining the costs of work performed by non-profit Resources!Data 9 Collection • organizations under grants,cooperative agreements,cost reimbursement contracts,and other contracts in which costs are used in pricing,administration,(If settlement.All of these instruments are hereafter referred to as awards. Other Special Purpose The principles do not apply to awards under which an organization is riot required to accxrunt to the Federal Menloianda Government for actual costs incurred. • Privacy Guidance Reports h. All cost reimbursement subawards(subgrants,subcontracts,etc.)are subject to those Federal cost principles Federal Register applicable to the particular organization concerned.Thus,if a subaward is to a non-profit organization,this Circular LC IA shall apply;if a subaward is to a commercial organization,the cost principles applicable to commercial concerns • No FEAR 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 OMB Locator federally recognized Indian tribal government,Circular A-87 shall apply. 4.Definitions. a. Non-profit organization means any corporation,trust,association,cooperative,or other organization which: (1)is operated primarilyfor 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 tune. http://www.whitehouse.gov/omb/circulars al 22_2004 5/4/2011 brecipients 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 he 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://wvvw.whitehouse.gov/omb/circulars_al 10 5/4/2011 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 otherfhan an.accrual basis, the recipient shall not he 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/circularsal 10 5/4/2011 A Basic Considerations I 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 allowabihly of costs To he 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 cosi 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(GMT)). 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 he incurred .by a prudent person under the circumstances prevailing al the time the decisionwas 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. 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 giant,contract,project,service,or other activity,in accordance with the relative benefits received.A cost is allocable to a Federal award if it is heated consistently with other costs incurred for the same purpose in like circumstances and it'it. (1)Is incurred specifically for the award. (2)Benefits both the award and other work and cart 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. http://wwvv.whitehouse.gov/omb/circulars al 22_2004 5/4/2011 ce 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 tune. http://www.whitehouse.gov/omb/circulars al 22_2004 5/4/2011 brecipients 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 he 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://wvvw.whitehouse.gov/omb/circulars_al 10 5/4/2011 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 otherfhan an.accrual basis, the recipient shall not he 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/circularsal 10 5/4/2011 u Meetings and conferences except these held to conduct the general administration of the organization. e Maintenance,protection,and investment 01 special funds not used III operation of the orgem:ation.. t. Administration of group benefits on behalf of members or clients,including life and hospital insurance,annuity or retiremei it 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 maybe treated as indirect costs under the conditions described in subparagraph 8.2.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.Flowever.typical examples of indirect cost for many non-profit organizations may include depreciation or 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,anti accounting. 3.Indirect costs shall he 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 horn 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,ifs 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 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 inducted in the direct costs under the conditions described in subparagraph B.3. • http://www.whitehouse.gov/omb/circulars a122_2004 5/4/2011 ov/omb/circulars_al 10 5/4/2011 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 otherfhan an.accrual basis, the recipient shall not he 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/circularsal 10 5/4/2011 ('I)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. (h)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 he treated as follows.The cost of each jointly used unit ol,space shall he allocated to the benefitting functions on the basis of: (i)the employees and other users on a full-time equivalent(FT[)basis or salaries and wages of those individual functions benefitting from the use of that space:or (ii)organization-wide employee FTEs or salaries 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,riot 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 he 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 he 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 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 Iwo 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 he 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 t'or each indirect cost pool as well as the overall indirect cost rate. http://www.whitehouse.gov/omb/circulars a122 2004 5/4/2011 ulars a122_2004 5/4/2011 ov/omb/circulars_al 10 5/4/2011 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 otherfhan an.accrual basis, the recipient shall not he 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/circularsal 10 5/4/2011 Federal agencies shall be given the opportunity to participate in the negotiation process but.alter 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, El 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 he 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. c. Fixed rates may be:negotiated where predetermined rates arc not considered appropriate.A fixed rate,however, shall not he negotiated it'(i)all or a substantial portion of the organization's awards are expected to expire before the carry-forward adjustment can he 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. 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 concerned 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 he 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. ATTACHMENT B Circular No.A 122 SELECTED ITEMS OF COST Table of Contents 'I. Advertising and public relations soils 2. Advisory councils 3. Alcoholic beverages 4. Audit costs and related services 5. Bad debts 6. Bonding costs 7. Co'r rurricatioe costs • A. Compensation for persona!services 9. Contingency provisions 'ID. Defense and prosecoAidr:of criminal and civil proceedings.claims,appeals and patent infringement 11. Depreciation and Use aJCwinnce`: 12. t.ionatier is arid contributions 13. Employee morale.health,and waliere costs 14. Entertainment costs 15. Equipment and other capital expenditures 16. Fines end penalties 17. Fond rai5::y and investment management costs 18. Gars and losses on depreciable assets 19. Goods or services for perscnel use 20. Housing and pesorral living expenses 21. 'idle facilities end idle capacity . 22. Insurance and indemnification 23. Interest 24. I.abar relations costs 25. Lobbying 26. Losses on ether sponsored agreements or contracts . • 27. Maintenance and repair costs http://wvvvv.whitehouse.gov/ornb/dirculars al22 2004 5/4/2011 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 he 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 t'or each indirect cost pool as well as the overall indirect cost rate. http://www.whitehouse.gov/omb/circulars a122 2004 5/4/2011 ulars a122_2004 5/4/2011 ov/omb/circulars_al 10 5/4/2011 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 otherfhan an.accrual basis, the recipient shall not he 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/circularsal 10 5/4/2011 concern,such as notices of Federal cavractigrant awards.financial matters,etc e. Costs identified in subparagraphs c and d if incurred for more than one Federal award or for bull 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. I. -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 comrnittees are allowable as a direct cost where authorized by the Federal awarding agency ores 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 art 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). • 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. 0.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 mernber'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. http://www.whitehouse.gov/omb/circulars a122 2004 g 5/4/2011 tributed 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 he 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 t'or each indirect cost pool as well as the overall indirect cost rate. http://www.whitehouse.gov/omb/circulars a122 2004 5/4/2011 ulars a122_2004 5/4/2011 ov/omb/circulars_al 10 5/4/2011 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 otherfhan an.accrual basis, the recipient shall not he 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/circularsal 10 5/4/2011 (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. It Organization-furnished automobiles.•f hat 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 lest 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 limiting the actuarial liability beyond 30 clays 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 sr.rch premiums are unallowable. (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 he reasonable and such costs are paid or accrued pursuant to an agreement entered into in good faith between the organizatiomand 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,art 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 he 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 • http://ww‘V.whitehouse.gov/omb/circulars a 122_2004 5/4/2011 cluded 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 t'or each indirect cost pool as well as the overall indirect cost rate. http://www.whitehouse.gov/omb/circulars a122 2004 5/4/2011 ulars a122_2004 5/4/2011 ov/omb/circulars_al 10 5/4/2011 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 otherfhan an.accrual basis, the recipient shall not he 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/circularsal 10 5/4/2011 (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.Stale,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. (h)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 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 h may he allowed to the extent specifically provided in such agreement. d. If a proceeding referred to in subparagraph b is commenced bye 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 relict • 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 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 h 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 http://www.whitehouse.gov/omb/circulars a122_2004 5/4/2011 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 t'or each indirect cost pool as well as the overall indirect cost rate. http://www.whitehouse.gov/omb/circulars a122 2004 5/4/2011 ulars a122_2004 5/4/2011 ov/omb/circulars_al 10 5/4/2011 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 otherfhan an.accrual basis, the recipient shall not he 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/circularsal 10 5/4/2011 12 Donations and contributions a. Contributions or donations rendered.Contribution;or donations,including rash,property,and services,made by the organization,regardless of the recipient,are unallowable, b. Donated services received' • (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 snatching 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 pail of the total costs of the project.Such indirect costs may he reimbursed under the award or used to meet cost sharing or snatching requirements. (5)The value of the donated services may he 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 he 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-prolt 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 matchinq.share requirements under the conditions described in Circular A-110.Where donations are treated as indirect costs.indirect cost vales will separate the value of the donations so that reimbursement will not be made. • 13.Employee morale,health,and welfare costs. 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.Enlerta)nment 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 • http://www.whitehouse.gov/omb/circulars al 22 2004 5/4/201.1 ederal Government may provide for conditional payment upon provision of adequate http://www.whitehouse.gov/omb/circulars a122_2004 5/4/2011 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 t'or each indirect cost pool as well as the overall indirect cost rate. http://www.whitehouse.gov/omb/circulars a122 2004 5/4/2011 ulars a122_2004 5/4/2011 ov/omb/circulars_al 10 5/4/2011 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 otherfhan an.accrual basis, the recipient shall not he 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/circularsal 10 5/4/2011 (e)Gains and losses arising from mass or extraordinary sales,retirements,or other dispositions shall he 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 organin aton'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 pertbrmance of the sponsored award and approved by awarding agencies. h. 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. (2)"Idle facilities"means completely unused facilities that are excess 10 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 tire extent that: (1)They are necessary 10 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 anti 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 8.9 and 8.i(2)j. (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. •(b)Costs allowed for business interruption or other similar insurance shall be limited to exclude coverage of • management tees. • http://www.whitehouse.gov/omb/circulars al 22_2004 5/4/2011 ion level established by the • http://www.whitehouse.gov/omb/circulars al 22 2004 5/4/201.1 ederal Government may provide for conditional payment upon provision of adequate http://www.whitehouse.gov/omb/circulars a122_2004 5/4/2011 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 t'or each indirect cost pool as well as the overall indirect cost rate. http://www.whitehouse.gov/omb/circulars a122 2004 5/4/2011 ulars a122_2004 5/4/2011 ov/omb/circulars_al 10 5/4/2011 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 otherfhan an.accrual basis, the recipient shall not he 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/circularsal 10 5/4/2011 • 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,it applicable) not included in the debt financing,less any estimated asset salvage value al the end of the penod 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 he 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 properly taxes to be borne by the non-profit organization directly ores part of the lease arrangement. (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 arc 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 atter September 29, 1995,is not allowable. (b)Interest attributable to fully depreciated assets is unallowable. (c)For debt arrangements over S1 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 he 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 he 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 reirnbur:sernents,to another facility prior to the expiration of a period of 20 years requites 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. . b. Fur nun-profit organizations subject to'lull coverage"'under the Cost Accounting Standards(CAS)as defined at 48 CFR 9903.201,the interest allowabitity 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 flue 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 rotations between the organization and its http://www.whitehouse.gov/omb/circulars_a 122_2004 5/4/2011 s from a recipient that maintains its records on otherfhan an.accrual basis, the recipient shall not he 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/circularsal 10 5/4/2011 d. Executive lobbying costs Costs incurred in attempting to improperly influence either directly or indirectly,an employee of 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 ad 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 nut limited tu,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 improven'rents 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 fur the performance of a Federal award may he charged as direct costs. d. Where rfederally donated or furnished materials are used in performing the Federal award.such materials will he used without charge. 29.Meetings and conferences.Costs of meetings and conferences,the primary purpose of which is the dissemination of technical information,arts allowable.This includes costs of meats,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. cr. 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 ur social or dining club or organization are unallowable. 31.Organization costs.Expenditures,such as incorporation fees,brokers'tees,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 an to the extent necessary to make such http://www.whitehouse.gov/omb/circulars al 22_2004 5/4/2011 of money as an element of flue 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 rotations between the organization and its http://www.whitehouse.gov/omb/circulars_a 122_2004 5/4/2011 s from a recipient that maintains its records on otherfhan an.accrual basis, the recipient shall not he 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/circularsal 10 5/4/2011 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 levred impartially on all research papers published by the journal,whether or not by federally sponsored authors. 3k.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. 41.Recruiting costs a. Subject to subparagraphs b.a,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 ernptoyrnent agencies,costs that are not in excess of standard commercial rates for such services are allowable.. h. 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 respectl,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 ousts 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: ('I)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. h. 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. (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 borne. (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 properly 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 properly.The cost of canceling an unexpired lease is limited to three times the monthly rental. http://www.whitehouse.gov/omb/circulars_a122_2004 5/4/2011 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 rotations between the organization and its http://www.whitehouse.gov/omb/circulars_a 122_2004 5/4/2011 s from a recipient that maintains its records on otherfhan an.accrual basis, the recipient shall not he 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/circularsal 10 5/4/2011 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 coal 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 arc 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 oil 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 nomrally 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 seine 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 Ire credited either as a cost reduction or cash refund,as appropriate,to the Federal Government. 46.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 he 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 en the non-profit organization's other work.Any acceptance of common items as allocable to the terminated portion of the Federal award shall he 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 http://www.whitehouse.gov/omb/circulars a122_2004 5/4/2011 d other such costs capitalized in accordance with GAAP. 24.Labor relations costs.Costs Incurred in maintaining satisfactory rotations between the organization and its http://www.whitehouse.gov/omb/circulars_a 122_2004 5/4/2011 s from a recipient that maintains its records on otherfhan an.accrual basis, the recipient shall not he 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/circularsal 10 5/4/2011 exceed one school year for each employee so trained.In unusual cases the period may he 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 pan of a degree-oriented curriculum,which are allowable only to the extent set forth in subparagraphs h 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 maybe 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 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. h. Lodging and subsistence.Costs incurred by employees and officers'for travel,including costs of lodging,other subsistence,and incidental expenses,shall he 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 nun-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 anti 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'custornary 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;(h)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 one 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 nonprofit 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. 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 terra"foreign travel"fora non-profit organization located in a foreign country means travel outside that country. • • http://www.whitehouse.gov/omb/circulars_a122 2004 5/4/2011 http://www.whitehouse.gov/omb/circulars_a 122_2004 5/4/2011 s from a recipient that maintains its records on otherfhan an.accrual basis, the recipient shall not he 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/circularsal 10 5/4/2011 E,411;10 .1- "6 c Race and Ethnic Data U.S.Department of Housing OMB Approval No.2502-0204 Reporting.Form and Urban Development (exp.03/31/2011) • Office of Housing Name of Property Project No. Address of Property • Name of Owner/Managing Agent Type of Assistance or Program Title Name of Head of Household Name of Household Member Date(mm/dd/yyyy): Select Ethnic Categories One Hispanic or Latino ❑ Not-Hispanic or Latino ❑ • Select Racial Categories* all that Apply American Indian or Alaska Native ❑ • • • Asian ❑ Black or African American ❑ Native Hawaiian or Other Pacific Islander ❑ White • ❑ Other ❑ *Definitions of these categories may be found on the reverse side. There is no penalty for persons who do not complete the form. Signature Date Public reporting burden for this collection is estimated to average 10 minutes per response, including the time for reviewing instructions, searching existing data sources,gathering and maintaining the data needed,and completing and reviewing the collection of information. This information is required to obtain benefits and voluntary. HUD may not collect this information,and you are not required to complete this form, unless it displays a currently valid OMB control number. This information is authorized by the U.S.Housing Act of 1937,as amended,the Housing and Urban Rural Recovery Act of 1983 and Housing and Community Development Technical Amendments of 1984. This information is needed to be in compliance with OMB-mandated changes to Ethnicity and Race categories for recording the 50059 Data Requirements to HUD. Owners/agents must offer the opportunity to the head and co- head of each household to"self certify"during the application interview or lease signing. In-place tenants must complete the format as part of their next interim or annual re-certification. This process will allow the owner/agent to collect the needed information on all members of the household. Completed documents should be stapled together for each household and placed in the household's file. Parents or guardians are to complete the self-certification for children under the age of 18. Once system development funds are provided and the appropriate system upgrades have been implemented,owners/agents will be required to report the race and ethnicity data electronically to the TRACS(Tenant Rental Assistance Certification System). This information is considered non-sensitive and does not require any special protection. 1 O O HOUSING revised and approved 7/7/10 operations as the result of the nun-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 anti 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'custornary 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;(h)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 one 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 nonprofit 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. 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 terra"foreign travel"fora non-profit organization located in a foreign country means travel outside that country. • • http://www.whitehouse.gov/omb/circulars_a122 2004 5/4/2011 http://www.whitehouse.gov/omb/circulars_a 122_2004 5/4/2011 s from a recipient that maintains its records on otherfhan an.accrual basis, the recipient shall not he 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/circularsal 10 5/4/2011 Instructions for the Race and Ethnic Data Reporting(Form HUD-27061-H) A. General Instructions: This form is to be completed by the head of household for those wishing to be served (applicants) and those that. are currently served (tenants/owner-occupants) in housing assisted by the Department of Housing and Urban Development. If the assisted property is a rental unit, the owner or agent is required to offer the applicant/tenant the option to complete the form. The form is to be completed at initial application or at lease signing. In-place tenants must also be offered the opportunity to complete the form as part of the next interim or annual recertification. Once the form is completed, it need not be completed again unless the head of household changes. There is no penalty for persons who do not complete the form. However, the owner or agent may place a note in the tenant file stating the applicant/tenant refused to complete the form. Completed documents should be placed in the household's file. The Office of Housing has been given permission to use this form for gathering race and ethnic data in assisted housing programs. 1. The two ethnic categories you should from are defined below. You should check one of the two categories. A. Hispanic or Latino. A person of Cuban, Mexican, Puerto Rican, South or Central American or other Spanish culture or origin, regardless of race. The term of"Spanish origin" can be used in addition to "Hispanic" or"Latino". B. Not Hispanic or Latino. A person not of Cuban, Mexican, Puerto Rican, South or Central American, or other Spanish culture or origin, regardless of race. 2. The five racial categories to choose from are defined below: You should check as many as apply to you. A. American Indian or Alaska Native. A person having origins in any of the original peoples of North and South America (including Central America), and who maintains tribal affiliation or community attachment. B. Asian. A person having origins in any of the original peoples of the Far East, Southeast Asia, or the Indian subcontinent including, for example, Cambodia, China, India, Japan, Korea, Malaysia, Pakistan, the Philippine Islands, Thailand and Vietnam. C. Black or African American. A person having origins in any of the black racial groups of Africa. Terms such as "Hatian" or "Negro" can be used in addition to "Black" or"African American". D. Native Hawaiian or Other Pacific Islander. A person having origins in any of the original peoples of Hawaii, Guam, Samoa, or other Pacific Islands. E. White. A person having origins in any of the original peoples of Europe, the Middle East or North Africa. 2 OPPORTUNITY revised and approved 7/7/10 d 7/7/10 operations as the result of the nun-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 anti 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'custornary 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;(h)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 one 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 nonprofit 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. 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 terra"foreign travel"fora non-profit organization located in a foreign country means travel outside that country. • • http://www.whitehouse.gov/omb/circulars_a122 2004 5/4/2011 http://www.whitehouse.gov/omb/circulars_a 122_2004 5/4/2011 s from a recipient that maintains its records on otherfhan an.accrual basis, the recipient shall not he 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/circularsal 10 5/4/2011 NON-HOMEOWNERSHIP FINANCIAL STATUS REPORT FORM (Please attach AIA G702 form and other comparable supporting documentation for expenditures) Developer Name: Program: CDBG ❑ ESG ❑ Developer's Contractor: HOME ❑ NAHTF ❑ Project Address: NSP ❑ SHP ❑ Project Type: Acquisition ❑ Loan#: New Constr ❑ Rehab ❑ Reporting Period: From: to DEVELOPMENT PROJECT % BUDGET COSTS BUDGET COMPLETE REMAINING Hard costs $ % $ Soft costs(list): $ % $ $ % $ $ % $ $ % $ $ % $ $ % $ $ % $ $ % $ $ % $ $ % $ $ % $ $ % $ $ % $ $ % $ $ % $ TOTALS $ % $ TOTAL PAY REQUEST: $ Amount Amount City Funds Other Funds • $ $ FUNDING SOURCES PROJECT % BUDGET BUDGET COMPLETE REMAINING $ % $ $ % $ $ % $ Other: Other: $ % $ Other: $ % $ TOTALS: $ • % $ I certify to the best of my knowledge that the above information is correct and complete and is for the purpose set forth in the award documents. Financial records are available for audit or review. Authorized Certifying Officer Title Date Printed Name: O OPPORUEIY Revised and approved 6/18/2010 s tribal affiliation or community attachment. B. Asian. A person having origins in any of the original peoples of the Far East, Southeast Asia, or the Indian subcontinent including, for example, Cambodia, China, India, Japan, Korea, Malaysia, Pakistan, the Philippine Islands, Thailand and Vietnam. C. Black or African American. A person having origins in any of the black racial groups of Africa. Terms such as "Hatian" or "Negro" can be used in addition to "Black" or"African American". D. Native Hawaiian or Other Pacific Islander. A person having origins in any of the original peoples of Hawaii, Guam, Samoa, or other Pacific Islands. E. White. A person having origins in any of the original peoples of Europe, the Middle East or North Africa. 2 OPPORTUNITY revised and approved 7/7/10 d 7/7/10 operations as the result of the nun-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 anti 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'custornary 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;(h)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 one 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 nonprofit 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. 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 terra"foreign travel"fora non-profit organization located in a foreign country means travel outside that country. • • http://www.whitehouse.gov/omb/circulars_a122 2004 5/4/2011 http://www.whitehouse.gov/omb/circulars_a 122_2004 5/4/2011 s from a recipient that maintains its records on otherfhan an.accrual basis, the recipient shall not he 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/circularsal 10 5/4/2011 L f); )0; )- 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 shall agree upon the termination conditions, including the effective date and in the case of partial 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 portion of the award will not accomplish the purposes for which the award was made, the awarding agency may terminate the award in its entirety under either § 85.43 or Paragraph (a) of this section. O -EQUAL 40p' tNG OPPORTUNITY Rev. 5/7/08 l under Federal awards(48 CFR 31.205-46(a)). c. Commercial air travel. (1)Airfare costs in excess of the'custornary 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;(h)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 one 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 nonprofit 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. 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 terra"foreign travel"fora non-profit organization located in a foreign country means travel outside that country. • • http://www.whitehouse.gov/omb/circulars_a122 2004 5/4/2011 http://www.whitehouse.gov/omb/circulars_a 122_2004 5/4/2011 s from a recipient that maintains its records on otherfhan an.accrual basis, the recipient shall not he 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/circularsal 10 5/4/2011 EXHIBIT " " 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, handicap 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, sexual orientation, gender identity, sex, national origin, age, handicap 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 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 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 Director shall be those which are related to Paragraphs (1) through (7) of this subsection 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 mination, the portion to be terminated. However, if, in the case of a partial termination, the awarding agency determines that the remaining portion of the award will not accomplish the purposes for which the award was made, the awarding agency may terminate the award in its entirety under either § 85.43 or Paragraph (a) of this section. O -EQUAL 40p' tNG OPPORTUNITY Rev. 5/7/08 l under Federal awards(48 CFR 31.205-46(a)). c. Commercial air travel. (1)Airfare costs in excess of the'custornary 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;(h)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 one 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 nonprofit 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. 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 terra"foreign travel"fora non-profit organization located in a foreign country means travel outside that country. • • http://www.whitehouse.gov/omb/circulars_a122 2004 5/4/2011 http://www.whitehouse.gov/omb/circulars_a 122_2004 5/4/2011 s from a recipient that maintains its records on otherfhan an.accrual basis, the recipient shall not he 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/circularsal 10 5/4/2011 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. (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 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 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) amilial 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 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 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 Director shall be those which are related to Paragraphs (1) through (7) of this subsection 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 mination, the portion to be terminated. However, if, in the case of a partial termination, the awarding agency determines that the remaining portion of the award will not accomplish the purposes for which the award was made, the awarding agency may terminate the award in its entirety under either § 85.43 or Paragraph (a) of this section. O -EQUAL 40p' tNG OPPORTUNITY Rev. 5/7/08 l under Federal awards(48 CFR 31.205-46(a)). c. Commercial air travel. (1)Airfare costs in excess of the'custornary 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;(h)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 one 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 nonprofit 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. 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 terra"foreign travel"fora non-profit organization located in a foreign country means travel outside that country. • • http://www.whitehouse.gov/omb/circulars_a122 2004 5/4/2011 http://www.whitehouse.gov/omb/circulars_a 122_2004 5/4/2011 s from a recipient that maintains its records on otherfhan an.accrual basis, the recipient shall not he 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/circularsal 10 5/4/2011 EJ11 i 1 " k " 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 provided in an applicable provision of the subcontract or in this Section 3 clause, upon a finding that the subcontractor is in violation of the regulations in 24 CFR part 135. The 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. er, if, in the case of a partial termination, the awarding agency determines that the remaining portion of the award will not accomplish the purposes for which the award was made, the awarding agency may terminate the award in its entirety under either § 85.43 or Paragraph (a) of this section. O -EQUAL 40p' tNG OPPORTUNITY Rev. 5/7/08 l under Federal awards(48 CFR 31.205-46(a)). c. Commercial air travel. (1)Airfare costs in excess of the'custornary 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;(h)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 one 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 nonprofit 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. 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 terra"foreign travel"fora non-profit organization located in a foreign country means travel outside that country. • • http://www.whitehouse.gov/omb/circulars_a122 2004 5/4/2011 http://www.whitehouse.gov/omb/circulars_a 122_2004 5/4/2011 s from a recipient that maintains its records on otherfhan an.accrual basis, the recipient shall not he 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/circularsal 10 5/4/2011 J 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. on of the award will not accomplish the purposes for which the award was made, the awarding agency may terminate the award in its entirety under either § 85.43 or Paragraph (a) of this section. O -EQUAL 40p' tNG OPPORTUNITY Rev. 5/7/08 l under Federal awards(48 CFR 31.205-46(a)). c. Commercial air travel. (1)Airfare costs in excess of the'custornary 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;(h)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 one 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 nonprofit 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. 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 terra"foreign travel"fora non-profit organization located in a foreign country means travel outside that country. • • http://www.whitehouse.gov/omb/circulars_a122 2004 5/4/2011 http://www.whitehouse.gov/omb/circulars_a 122_2004 5/4/2011 s from a recipient that maintains its records on otherfhan an.accrual basis, the recipient shall not he 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/circularsal 10 5/4/2011 Exh, 6a f "L " UNITED STATES CITIZENSHIP ATTESTATION FORM FOR PUBLIC BENEFIT For the purposes of complying with Neb. Rev. Stat. §§ 4-108 through 4-114, I attest as follows: (l I am a citizen of the United States. OR ❑ I am a qualified alien under the Federal Immigration and Nationality Act. My immigration status and alien number as follows: , and I agree to provide a copy of my USCIS (United States Citizenship and Immigration Services) documentation upon request. I hereby attest that my response and the information provided on this form and any related application for public benefits are true, complete and accurate and I understand that this information may be used to verify my lawful presence in the United States. PRINT NAME: By: SIGNATURE: DATE: • MOM NRY Created and approved 10/26/2009 t 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. on of the award will not accomplish the purposes for which the award was made, the awarding agency may terminate the award in its entirety under either § 85.43 or Paragraph (a) of this section. O -EQUAL 40p' tNG OPPORTUNITY Rev. 5/7/08 l under Federal awards(48 CFR 31.205-46(a)). c. Commercial air travel. (1)Airfare costs in excess of the'custornary 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;(h)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 one 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 nonprofit 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. 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 terra"foreign travel"fora non-profit organization located in a foreign country means travel outside that country. • • http://www.whitehouse.gov/omb/circulars_a122 2004 5/4/2011 http://www.whitehouse.gov/omb/circulars_a 122_2004 5/4/2011 s from a recipient that maintains its records on otherfhan an.accrual basis, the recipient shall not he 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/circularsal 10 5/4/2011 ,41 •H ; „ • AFFIDAVIT FOR EMPLOYEE CLASSIFICATION ACT STATE OF ) ) § COUNTY OF ) I, ,being first duly sworn under oath, state and depose as follows: 1. I am competent to testify to,and have personal knowledge of,the matters stated in this affidavit. 2. I am(a contractor)(the authorized agent of the contractor ). I attest to the following: (a) each individual performing services for such contractor is properly classified under the Nebraska Employee Classification Act, 2010 LB 563 ("the Act"), (b) such contractor has completed a federal I-9 immigration form and has such form on file for each employee performing services, (c)such contractor has complied with Neb. Rev. Stat. section 4-114 (federal immigration verification system), (d) such contractor has no reasonable basis to believe that any individual performing services for such contractor is an undocumented worker, and(e)as of the time of the contract, such contractor is not barred from contracting with the state or any political subdivision pursuant to the Act. FURTHER AFFIANT SAYETH NAUGHT. Affiant SUBSCRIBED AND SWORN TO before me this day of ,20 Notary Public O oPao�"n�wi °v Approved 6/1/10 s 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. on of the award will not accomplish the purposes for which the award was made, the awarding agency may terminate the award in its entirety under either § 85.43 or Paragraph (a) of this section. O -EQUAL 40p' tNG OPPORTUNITY Rev. 5/7/08 l under Federal awards(48 CFR 31.205-46(a)). c. Commercial air travel. (1)Airfare costs in excess of the'custornary 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;(h)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 one 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 nonprofit 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. 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 terra"foreign travel"fora non-profit organization located in a foreign country means travel outside that country. • • http://www.whitehouse.gov/omb/circulars_a122 2004 5/4/2011 http://www.whitehouse.gov/omb/circulars_a 122_2004 5/4/2011 s from a recipient that maintains its records on otherfhan an.accrual basis, the recipient shall not he 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/circularsal 10 5/4/2011 MINORITY BUSINESS & WOMEN BUSINESS ENTERPRISE PLAN March 2011 OMAHA,A. F ii �' O 6 G .11..1'�7 111 • 04'.RD FEBRu�4� PLANNING•OMAHA Jim suttee,Mayor PLANNING DEPARTMENT R.E. Cunningham,RA,F. SAME ' City of Omaha CITY OF OMAHA City of Omaha Planning Department Omaha/Douglas Civic Center 1819 Farnam Street Omaha,Nebraska 68183 1 Reviewed and approved 3/28/2011 9.01 Remedies SCHEDULE OF EXHIBITS treet. That, the cost of publication of notice of the hearing was $26.00. May 22, 2012 -Resolution No. 675 - Motion to adopt. Carried 7-0. By 4n1 ° Councilmember Adopted MAY 2 2 2012 )- — 0 DEP U Cit Clerk Approved.., . Mayor -4,2 Mayor MINORITY BUSINESS/WOMEN BUSINESS ENTERPRISE PLAN INTRODUCTION Minority and women business sectors play an important part in Omaha's overall plans for future growth, progress, and prosperity. It is vital to the City's economic condition and well-being that minority and women businesses expand, thrive and prosper, generating economic stability and increased job opportunities. Towards the fulfillment and accomplishment of these important objectives, the City of Omaha remains committed to minority and women business development. The City of Omaha's approach to minority/women business development is embedded in its policy of non- discrimination in the conduct of City business including the procurement of goods, materials and services, construction and community and economic development projects. The City recognizes its obligations to each segment of the various communities it serves. It is in recognition of these responsibilities that the City established the City's Contract Compliance Ordinance. The Ordinance commits the City to: 1. Require contractors and/or vendors to provide employment opportunities without regard to race, color, sex, religion, or national origin; 2. Monitor contractor and vendor equal opportunity performance; and 3. Increase the total number and total dollar volume of City contracts awarded to minority-owned and women-owned firms. GOALS AND OBJECTIVES The following represents a summary of the goals and objectives of the Planning Department as they relate to minority and women-owned businesses: 1. Encourage, increase and promote business and procurement opportunities for women-owned businesses; 2. Increase and expand the awareness and understanding regarding the concerns, obstacles, and hindrances preventing increased MBE/WBE participation in Planning Department activities; 3. Assist MBE's/WBE's through the revitalization of business districts; 4. Assist minority and female entrepreneurs in the formation and growth of new small businesses; and 5. Provide technical assistance to neighborhood organizations, MBE's and WBE's to increase their participation in the Planning Department programs and activities at all levels. SCOPE OF WORK In order to accomplish these objectives, the Planning Department will: 1. Require that recipients of grant awards, consulting contracts, or loans to adopt the City's MBE/WBE Enterprise Plan. 2. Ensure that Requests for Proposals have the MBE/WBE Enterprise Plan. 3. Ensure that the programs of the Planning Department are advertised in the appropriate new media whose markets are targeted toward MBE/WBE. 2 Reviewed and approved 3/28/2011 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. on of the award will not accomplish the purposes for which the award was made, the awarding agency may terminate the award in its entirety under either § 85.43 or Paragraph (a) of this section. O -EQUAL 40p' tNG OPPORTUNITY Rev. 5/7/08 l under Federal awards(48 CFR 31.205-46(a)). c. Commercial air travel. (1)Airfare costs in excess of the'custornary 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;(h)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 one 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 nonprofit 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. 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 terra"foreign travel"fora non-profit organization located in a foreign country means travel outside that country. • • http://www.whitehouse.gov/omb/circulars_a122 2004 5/4/2011 http://www.whitehouse.gov/omb/circulars_a 122_2004 5/4/2011 s from a recipient that maintains its records on otherfhan an.accrual basis, the recipient shall not he 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/circularsal 10 5/4/2011 4. Implement an outreach effort informing MBE and WBE firms and capture information on these firms doing business with the Planning Department. 5. Implement a system to identify MBE and WBE firms and capture information on these firms doing business with the Planning Department. 6. Require developers, corporations, partnerships and/or sole proprietors to register with the Human Relations Department and the Purchasing Department. In addition, require these entities to complete CC-1 (Human Relations Department) The following information has been developed to assist you in complying , with the MBE/WBE requirements in the agreement with the City of Omaha. If you have any questions or require further assistance in completing the application package, please contact Mr. Edward Dantzler,at 444-5530. 3 Reviewed and approved 3/28/2011 Cit Clerk Approved.., . Mayor -4,2 Mayor MBE/WBE FOR GOODS AND SERVICES Your company must make vendors aware of equal opportunity utilization of minority, disabled and women-owned businesses. To accomplish this goal, you must provide a copy of the approved MBE/WBE Participation Plan to all businesses providing goods and/or services to the project. Your company must provide the opportunity for Minority Business Enterprises and Women Business Enterprises to provide goods and services through all phases of the project. A concerted effort must be made to allow these businesses to actively compete for project contracts. This effort will include utilization of the following resources and documentation of your actions to achieve these objectives. Douglas County Purchasing Department 1819 Farnam Street, Room 903 Omaha,NE 68183 Pat Burke, Purchasing Agent 402-444-5408 Fax: 402-444-4992 Housing and Community Development Division City Planning 1819 Farnam Street, Room 1111 Omaha,NE 68183 Edward Dantzler, Development Section Manager 402-444-5530 Fax: 402-444-5201 Human Rights and Relations Department Contract Compliance 1819 Farnam Street, Room 502 Omaha,NE 68183 Richard O'Gara, Director 402-444-5050 Fax: 402-444-5058 Minority Economic Development Greater Omaha Chamber of Commerce 1301 Harney Street Omaha,NE 68102 Winsley Duran, Director 402-345-5000 Fax: 402-346-7050 Nebraska Department of Economic Development Small Business (MBE/WBE/DBE) Assistance 301 Centennial Mall South Lincoln,NE 68509-4666 Steve Williams, Business Assistance Manager 402-471-3111 Fax 402-471-3778 4 Reviewed and approved 3/28/2011 sses; 2. Increase and expand the awareness and understanding regarding the concerns, obstacles, and hindrances preventing increased MBE/WBE participation in Planning Department activities; 3. Assist MBE's/WBE's through the revitalization of business districts; 4. Assist minority and female entrepreneurs in the formation and growth of new small businesses; and 5. Provide technical assistance to neighborhood organizations, MBE's and WBE's to increase their participation in the Planning Department programs and activities at all levels. SCOPE OF WORK In order to accomplish these objectives, the Planning Department will: 1. Require that recipients of grant awards, consulting contracts, or loans to adopt the City's MBE/WBE Enterprise Plan. 2. Ensure that Requests for Proposals have the MBE/WBE Enterprise Plan. 3. Ensure that the programs of the Planning Department are advertised in the appropriate new media whose markets are targeted toward MBE/WBE. 2 Reviewed and approved 3/28/2011 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. on of the award will not accomplish the purposes for which the award was made, the awarding agency may terminate the award in its entirety under either § 85.43 or Paragraph (a) of this section. O -EQUAL 40p' tNG OPPORTUNITY Rev. 5/7/08 l under Federal awards(48 CFR 31.205-46(a)). c. Commercial air travel. (1)Airfare costs in excess of the'custornary 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;(h)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 one 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 nonprofit 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. 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 terra"foreign travel"fora non-profit organization located in a foreign country means travel outside that country. • • http://www.whitehouse.gov/omb/circulars_a122 2004 5/4/2011 http://www.whitehouse.gov/omb/circulars_a 122_2004 5/4/2011 s from a recipient that maintains its records on otherfhan an.accrual basis, the recipient shall not he 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/circularsal 10 5/4/2011 MBE/WBE FOR GOODS AND SERVICES North Omaha Contractor Alliance 2505 North 24th Street Omaha, NE 68110 Houston McKel1, Executive Director 402-991-3420 Omaha Small Business Network, Inc. 2505 North 24th Street Omaha,NE 68110 Vicki Wilson Tederman, Executive Director 402-453-5336 Fax: 402-451-2876 Small Business Administration 10675 Bedford Avenue, Suite 100 Omaha,NE 68134 Kathleen Piper, ADD/MED 402-221-7205 Fax: 402-221-3680 Urban League of Nebraska, Inc. 3040 Lake Street Omaha,NE 68110 Thomas H. Warren, President/CEO 402-451-1066 5 Reviewed and approved 3/28/2011 nt with the City of Omaha. If you have any questions or require further assistance in completing the application package, please contact Mr. Edward Dantzler,at 444-5530. 3 Reviewed and approved 3/28/2011 Cit Clerk Approved.., . Mayor -4,2 Mayor CITY OF OMAHA CONTRACTOR INFORMATION FORM Date: Project Address: Owner Information Name: Address: City,St.,Zip: Phone: General Contractor Information Name: Address: City,St.,Zip: Phone: Federal Tax ID or SSN Contract Amount $ Woman Owned Business ❑ Yes ❑No BRE(Business Owned Race/Ethnic)Code: (BRE Code: 1 White American; 2 Black American; 3 Native American; 4 Hispanic American 5 Asian/Pacific American; 6 Hasidic Jews _Subcontractor Information (Complete for each subcontractor for the project) Name/Address Fed Tax Contract Woman Own BRE ID/SSN Amt. Code Name: $ ❑Yes ❑No Address: City,St.,Zip: Phone: Name: $ ❑ Yes ❑No Address: City,St.,Zip: Phone: Name: $ ❑Yes ❑No Address: City,St.,Zip: Phone: Name: $ ❑Yes ❑No Address: City,St.,Zip: Phone: Name: $ ❑Yes ❑No Address: City,St.,Zip: Phone: Name: $ ❑Yes ❑No Address: City,St.,Zip: Phone: Name: $ ❑Yes ❑No Address: __ City,St.,Zip: Phone: 6 Reviewed and approved 3/28/2011 r Omaha Chamber of Commerce 1301 Harney Street Omaha,NE 68102 Winsley Duran, Director 402-345-5000 Fax: 402-346-7050 Nebraska Department of Economic Development Small Business (MBE/WBE/DBE) Assistance 301 Centennial Mall South Lincoln,NE 68509-4666 Steve Williams, Business Assistance Manager 402-471-3111 Fax 402-471-3778 4 Reviewed and approved 3/28/2011 sses; 2. Increase and expand the awareness and understanding regarding the concerns, obstacles, and hindrances preventing increased MBE/WBE participation in Planning Department activities; 3. Assist MBE's/WBE's through the revitalization of business districts; 4. Assist minority and female entrepreneurs in the formation and growth of new small businesses; and 5. Provide technical assistance to neighborhood organizations, MBE's and WBE's to increase their participation in the Planning Department programs and activities at all levels. SCOPE OF WORK In order to accomplish these objectives, the Planning Department will: 1. Require that recipients of grant awards, consulting contracts, or loans to adopt the City's MBE/WBE Enterprise Plan. 2. Ensure that Requests for Proposals have the MBE/WBE Enterprise Plan. 3. Ensure that the programs of the Planning Department are advertised in the appropriate new media whose markets are targeted toward MBE/WBE. 2 Reviewed and approved 3/28/2011 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. on of the award will not accomplish the purposes for which the award was made, the awarding agency may terminate the award in its entirety under either § 85.43 or Paragraph (a) of this section. O -EQUAL 40p' tNG OPPORTUNITY Rev. 5/7/08 l under Federal awards(48 CFR 31.205-46(a)). c. Commercial air travel. (1)Airfare costs in excess of the'custornary 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;(h)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 one 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 nonprofit 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. 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 terra"foreign travel"fora non-profit organization located in a foreign country means travel outside that country. • • http://www.whitehouse.gov/omb/circulars_a122 2004 5/4/2011 http://www.whitehouse.gov/omb/circulars_a 122_2004 5/4/2011 s from a recipient that maintains its records on otherfhan an.accrual basis, the recipient shall not he 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/circularsal 10 5/4/2011 • Date: Project Address: Owner Information Name: General Contractor Information Name: (BRE Code: 1 White American; 2 Black American; 3 Native American; 4 Hispanic American 5 Asian/Pacific American; 6 Hasidic Jews Name/Address Fed Tax Contract Woman Own BRE ID/SSN Amt. Name: $ ❑ Yes ❑No Address: City,St.,Zip: Phone: Name: $ ❑ Yes ❑No Address: City,St.,Zip: Phone: Name: $ ❑Yes ❑No Address: City,St.,Zip: Phone: Name: $ ❑ Yes ❑No Address: City,St.,Zip: Phone: Name: $ ❑ Yes ❑No Address: City,St.,Zip: Phone: Name: $ ❑ Yes ❑No Address: City,St.,Zip: Phone: Name: $ ❑ Yes ❑No Address: City,St.,Zip: Phone: Name: $ ❑ Yes ❑No Address: City,St.,Zip: Phone: Name: $ ❑Yes ❑No Address: City,St.,Zip: Phone: 7 Reviewed and approved 3/28/2011 $ ❑Yes ❑No Address: City,St.,Zip: Phone: Name: $ ❑Yes ❑No Address: __ City,St.,Zip: Phone: 6 Reviewed and approved 3/28/2011 r Omaha Chamber of Commerce 1301 Harney Street Omaha,NE 68102 Winsley Duran, Director 402-345-5000 Fax: 402-346-7050 Nebraska Department of Economic Development Small Business (MBE/WBE/DBE) Assistance 301 Centennial Mall South Lincoln,NE 68509-4666 Steve Williams, Business Assistance Manager 402-471-3111 Fax 402-471-3778 4 Reviewed and approved 3/28/2011 sses; 2. Increase and expand the awareness and understanding regarding the concerns, obstacles, and hindrances preventing increased MBE/WBE participation in Planning Department activities; 3. Assist MBE's/WBE's through the revitalization of business districts; 4. Assist minority and female entrepreneurs in the formation and growth of new small businesses; and 5. Provide technical assistance to neighborhood organizations, MBE's and WBE's to increase their participation in the Planning Department programs and activities at all levels. SCOPE OF WORK In order to accomplish these objectives, the Planning Department will: 1. Require that recipients of grant awards, consulting contracts, or loans to adopt the City's MBE/WBE Enterprise Plan. 2. Ensure that Requests for Proposals have the MBE/WBE Enterprise Plan. 3. Ensure that the programs of the Planning Department are advertised in the appropriate new media whose markets are targeted toward MBE/WBE. 2 Reviewed and approved 3/28/2011 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. on of the award will not accomplish the purposes for which the award was made, the awarding agency may terminate the award in its entirety under either § 85.43 or Paragraph (a) of this section. O -EQUAL 40p' tNG OPPORTUNITY Rev. 5/7/08 l under Federal awards(48 CFR 31.205-46(a)). c. Commercial air travel. (1)Airfare costs in excess of the'custornary 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;(h)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 one 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 nonprofit 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. 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 terra"foreign travel"fora non-profit organization located in a foreign country means travel outside that country. • • http://www.whitehouse.gov/omb/circulars_a122 2004 5/4/2011 http://www.whitehouse.gov/omb/circulars_a 122_2004 5/4/2011 s from a recipient that maintains its records on otherfhan an.accrual basis, the recipient shall not he 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/circularsal 10 5/4/2011 DEFINITIONS: 1. American Indian or Alaska Native. A person having origins in any of the original peoples of North and South America (including Central America), and who maintains tribal affiliation or community attachment. 2. Asian. A person having origins in any of the original peoples of the Far East, Southeast Asia, or the Indian subcontinent including, for example, Cambodia, China, India, Japan, Korea, Malaysia, Pakistan, the Philippine Islands, Thailand and Vietnam. 3. Black or African American. A person having origins in any of the black racial groups of Africa. Terms such as "Haitian" or"Negro"can be used in addition to "Black" or"African American". 4. Native Hawaiian or Other Pacific Islander. A person having origins in any of the original peoples of Hawaii, Guam, Samoa or other Pacific Islands. 5. White. A person having origins in any of the original peoples of Europe, the Middle East or North Africa. O MUM 8 Reviewed and approved 3/28/2011 7 Reviewed and approved 3/28/2011 $ ❑Yes ❑No Address: City,St.,Zip: Phone: Name: $ ❑Yes ❑No Address: __ City,St.,Zip: Phone: 6 Reviewed and approved 3/28/2011 r Omaha Chamber of Commerce 1301 Harney Street Omaha,NE 68102 Winsley Duran, Director 402-345-5000 Fax: 402-346-7050 Nebraska Department of Economic Development Small Business (MBE/WBE/DBE) Assistance 301 Centennial Mall South Lincoln,NE 68509-4666 Steve Williams, Business Assistance Manager 402-471-3111 Fax 402-471-3778 4 Reviewed and approved 3/28/2011 sses; 2. Increase and expand the awareness and understanding regarding the concerns, obstacles, and hindrances preventing increased MBE/WBE participation in Planning Department activities; 3. Assist MBE's/WBE's through the revitalization of business districts; 4. Assist minority and female entrepreneurs in the formation and growth of new small businesses; and 5. Provide technical assistance to neighborhood organizations, MBE's and WBE's to increase their participation in the Planning Department programs and activities at all levels. SCOPE OF WORK In order to accomplish these objectives, the Planning Department will: 1. Require that recipients of grant awards, consulting contracts, or loans to adopt the City's MBE/WBE Enterprise Plan. 2. Ensure that Requests for Proposals have the MBE/WBE Enterprise Plan. 3. Ensure that the programs of the Planning Department are advertised in the appropriate new media whose markets are targeted toward MBE/WBE. 2 Reviewed and approved 3/28/2011 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. on of the award will not accomplish the purposes for which the award was made, the awarding agency may terminate the award in its entirety under either § 85.43 or Paragraph (a) of this section. O -EQUAL 40p' tNG OPPORTUNITY Rev. 5/7/08 l under Federal awards(48 CFR 31.205-46(a)). c. Commercial air travel. (1)Airfare costs in excess of the'custornary 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;(h)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 one 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 nonprofit 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. 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 terra"foreign travel"fora non-profit organization located in a foreign country means travel outside that country. • • http://www.whitehouse.gov/omb/circulars_a122 2004 5/4/2011 http://www.whitehouse.gov/omb/circulars_a 122_2004 5/4/2011 s from a recipient that maintains its records on otherfhan an.accrual basis, the recipient shall not he 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/circularsal 10 5/4/2011 E,.h;10t' - 'to CITY OF OMAHA -DEFINITION OF INCOME Annual Income Includes: 1. Wages, salaries, tips, commissions, etc.; 2. Self-employment income from owned non-farm business, including proprietorships and partnerships; 3. Farm self-employment income; 4. Interest, dividends, net rental income, or income from estates or trusts 5. Social security or railroad retirement; 6. Supplemental Security Income, Aid to Families with Dependent Children, or other public assistance or public welfare programs; 7. Retirement, survivor or disability pensions; 8. Any other sources of income received regularly including Veterans' (VA) payments, unemployment compensation, child support and alimony; and 9. Income from assets, as shown below: a. Amounts in savings certificates, money market funds and other investment accounts. b. Stocks, bonds, savings certificates, money market funds and other investment accounts. c. Equity in real property or other capital investments. Equity is the estimated current market value of the asset less the unpaid balance on all loans secured by the asset and reasonable costs (such as broker fees) that would be incurred in selling the asset. Do not include equity in principle residence (home equity). d. The cash value of trusts that are available to the household. e. IRA, Keogh and similar retirement savings accounts, even though withdrawal would result in a penalty. f. Contributions to company retirement/pension funds that can be withdrawn without retiring or terminating employment. g. Assets which, although owned by more than one person, allow unrestricted access by the applicant. h. Lump sum receipts such as inheritances, capital gains, lottery winnings, insurance settlements and other claims. i. Personal property held as an investment such as gems,jewelry, coin collections, antique cars, etc. j. Cash value of life insurance policies. k. Assets disposed of for less than fair market value during two years preceding certification or re- certification. 10. Actual income from assets if total assets are $5,000 or less. 11. If assets are more than $5,000, the greater of (a) actual income from assets, or (b) total assets times passbook rate. Annual Income Does Not Include the Following Assets: 1. Necessary personal property, except as noted in 9 (i). 2. Interest in Indian trust lands. 3. Assets that are a part of an active business or farming operation. NOTE: Rental properties are considered personal assets held as an investment rather than business assets unless real estate is the applicant's/tenant's main occupation. 4. Assets not accessible to the family and which provide no income for the family. 5. Vehicles especially equipped for the handicapped. 6. Equity in owner-occupied cooperatives and manufactured homes in which the family lives. 7. Equity in principle residence (home equity). EQUAL HOUSING 4PPORTI MITY Revised and approved 7/12/2011 not accomplish the purposes for which the award was made, the awarding agency may terminate the award in its entirety under either § 85.43 or Paragraph (a) of this section. O -EQUAL 40p' tNG OPPORTUNITY Rev. 5/7/08 l under Federal awards(48 CFR 31.205-46(a)). c. Commercial air travel. (1)Airfare costs in excess of the'custornary 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;(h)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 one 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 nonprofit 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. 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 terra"foreign travel"fora non-profit organization located in a foreign country means travel outside that country. • • http://www.whitehouse.gov/omb/circulars_a122 2004 5/4/2011 http://www.whitehouse.gov/omb/circulars_a 122_2004 5/4/2011 s from a recipient that maintains its records on otherfhan an.accrual basis, the recipient shall not he 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/circularsal 10 5/4/2011 EXHIBIT "P" SOURCES AND USES Sources: City of Omaha CDBG $600,000.00 Grants and Contributions $373,369.00 Wages Paid By employers . $58,000.00 Total $1,031,369.00 Uses: (Based upon the assumption of 100 participants ages 14-16) Personnel • Program Managers $25,500.00 Program Support $16,650.00 Training $20,000.00 Case Managers $144,000.00 Workshops $12,500.00 Administration $45,800.00 Project Audit $5,000.00 Subtotal $269,450.00 Non-Personnel Food * $28,130.00 Supplies * $3,750.00 Travel * $9,600.00 Subtotal $41,480.00 Programmatic Assessments* $11,000.00 Emergency Assistance* $21,600.00 Youth Activity-Wks. 1 &2 * $75,000.00 Workman's Compensation $45,600.00 Job Preparedness age 14-16* $60,000.00 Job Experience ages 16-24 $464,000.00 FICA/unemployment $43,239.00 Subtotal $720,439.00 Total $1,031,369.00 (*= not CDBG eligible) as broker fees) that would be incurred in selling the asset. Do not include equity in principle residence (home equity). d. The cash value of trusts that are available to the household. e. IRA, Keogh and similar retirement savings accounts, even though withdrawal would result in a penalty. f. Contributions to company retirement/pension funds that can be withdrawn without retiring or terminating employment. g. Assets which, although owned by more than one person, allow unrestricted access by the applicant. h. Lump sum receipts such as inheritances, capital gains, lottery winnings, insurance settlements and other claims. i. Personal property held as an investment such as gems,jewelry, coin collections, antique cars, etc. j. Cash value of life insurance policies. k. Assets disposed of for less than fair market value during two years preceding certification or re- certification. 10. Actual income from assets if total assets are $5,000 or less. 11. If assets are more than $5,000, the greater of (a) actual income from assets, or (b) total assets times passbook rate. Annual Income Does Not Include the Following Assets: 1. Necessary personal property, except as noted in 9 (i). 2. Interest in Indian trust lands. 3. Assets that are a part of an active business or farming operation. NOTE: Rental properties are considered personal assets held as an investment rather than business assets unless real estate is the applicant's/tenant's main occupation. 4. Assets not accessible to the family and which provide no income for the family. 5. Vehicles especially equipped for the handicapped. 6. Equity in owner-occupied cooperatives and manufactured homes in which the family lives. 7. Equity in principle residence (home equity). EQUAL HOUSING 4PPORTI MITY Revised and approved 7/12/2011 not accomplish the purposes for which the award was made, the awarding agency may terminate the award in its entirety under either § 85.43 or Paragraph (a) of this section. O -EQUAL 40p' tNG OPPORTUNITY Rev. 5/7/08 l under Federal awards(48 CFR 31.205-46(a)). c. Commercial air travel. (1)Airfare costs in excess of the'custornary 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;(h)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 one 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 nonprofit 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. 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 terra"foreign travel"fora non-profit organization located in a foreign country means travel outside that country. • • http://www.whitehouse.gov/omb/circulars_a122 2004 5/4/2011 http://www.whitehouse.gov/omb/circulars_a 122_2004 5/4/2011 s from a recipient that maintains its records on otherfhan an.accrual basis, the recipient shall not he 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/circularsal 10 5/4/2011 4c vF b; .r -e Circular No. A-133 Revised to show changes published in the Federal Register June 27 , 2003 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) 395-3993 . 1 mmercial discount airfare are unallowable except when such accommodations would:(a)require circuitous routing;(h)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 one 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 nonprofit 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. 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 terra"foreign travel"fora non-profit organization located in a foreign country means travel outside that country. • • http://www.whitehouse.gov/omb/circulars_a122 2004 5/4/2011 http://www.whitehouse.gov/omb/circulars_a 122_2004 5/4/2011 s from a recipient that maintains its records on otherfhan an.accrual basis, the recipient shall not he 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/circularsal 10 5/4/2011 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 Attachment • • • andards 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) 395-3993 . 1 mmercial discount airfare are unallowable except when such accommodations would:(a)require circuitous routing;(h)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 one 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 nonprofit 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. 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 terra"foreign travel"fora non-profit organization located in a foreign country means travel outside that country. • • http://www.whitehouse.gov/omb/circulars_a122 2004 5/4/2011 http://www.whitehouse.gov/omb/circulars_a 122_2004 5/4/2011 s from a recipient that maintains its records on otherfhan an.accrual basis, the recipient shall not he 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/circularsal 10 5/4/2011 FART --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. • • al 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 Attachment • • • andards 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) 395-3993 . 1 mmercial discount airfare are unallowable except when such accommodations would:(a)require circuitous routing;(h)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 one 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 nonprofit 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. 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 terra"foreign travel"fora non-profit organization located in a foreign country means travel outside that country. • • http://www.whitehouse.gov/omb/circulars_a122 2004 5/4/2011 http://www.whitehouse.gov/omb/circulars_a 122_2004 5/4/2011 s from a recipient that maintains its records on otherfhan an.accrual basis, the recipient shall not he 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/circularsal 10 5/4/2011 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 (0MB) 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 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) 395-3993 . 1 mmercial discount airfare are unallowable except when such accommodations would:(a)require circuitous routing;(h)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 one 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 nonprofit 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. 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 terra"foreign travel"fora non-profit organization located in a foreign country means travel outside that country. • • http://www.whitehouse.gov/omb/circulars_a122 2004 5/4/2011 http://www.whitehouse.gov/omb/circulars_a 122_2004 5/4/2011 s from a recipient that maintains its records on otherfhan an.accrual basis, the recipient shall not he 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/circularsal 10 5/4/2011 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 imbursement contracts that non-Federal entities receive directly from Federal awarding agencies or indirectly from pass-through entities. It does • 4 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) 395-3993 . 1 mmercial discount airfare are unallowable except when such accommodations would:(a)require circuitous routing;(h)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 one 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 nonprofit 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. 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 terra"foreign travel"fora non-profit organization located in a foreign country means travel outside that country. • • http://www.whitehouse.gov/omb/circulars_a122 2004 5/4/2011 http://www.whitehouse.gov/omb/circulars_a 122_2004 5/4/2011 s from a recipient that maintains its records on otherfhan an.accrual basis, the recipient shall not he 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/circularsal 10 5/4/2011 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. • ovide 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 imbursement contracts that non-Federal entities receive directly from Federal awarding agencies or indirectly from pass-through entities. It does • 4 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) 395-3993 . 1 mmercial discount airfare are unallowable except when such accommodations would:(a)require circuitous routing;(h)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 one 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 nonprofit 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. 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 terra"foreign travel"fora non-profit organization located in a foreign country means travel outside that country. • • http://www.whitehouse.gov/omb/circulars_a122 2004 5/4/2011 http://www.whitehouse.gov/omb/circulars_a 122_2004 5/4/2011 s from a recipient that maintains its records on otherfhan an.accrual basis, the recipient shall not he 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/circularsal 10 5/4/2011 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 5 .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 Federal Financial Management, Office of Management and Budget, Washington, DC 20503, telephone (202) 395-3993 . 1 mmercial discount airfare are unallowable except when such accommodations would:(a)require circuitous routing;(h)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 one 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 nonprofit 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. 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 terra"foreign travel"fora non-profit organization located in a foreign country means travel outside that country. • • http://www.whitehouse.gov/omb/circulars_a122 2004 5/4/2011 http://www.whitehouse.gov/omb/circulars_a 122_2004 5/4/2011 s from a recipient that maintains its records on otherfhan an.accrual basis, the recipient shall not he 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/circularsal 10 5/4/2011 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 ely 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 one 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 nonprofit 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. 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 terra"foreign travel"fora non-profit organization located in a foreign country means travel outside that country. • • http://www.whitehouse.gov/omb/circulars_a122 2004 5/4/2011 http://www.whitehouse.gov/omb/circulars_a 122_2004 5/4/2011 s from a recipient that maintains its records on otherfhan an.accrual basis, the recipient shall not he 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/circularsal 10 5/4/2011 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 § .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. § .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 ending after December 31, 2003) . Non-Federal 8 ely 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 one 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 nonprofit 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. 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 terra"foreign travel"fora non-profit organization located in a foreign country means travel outside that country. • • http://www.whitehouse.gov/omb/circulars_a122 2004 5/4/2011 http://www.whitehouse.gov/omb/circulars_a 122_2004 5/4/2011 s from a recipient that maintains its records on otherfhan an.accrual basis, the recipient shall not he 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/circularsal 10 5/4/2011 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 carryout 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 s 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 ending after December 31, 2003) . Non-Federal 8 ely 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 one 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 nonprofit 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. 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 terra"foreign travel"fora non-profit organization located in a foreign country means travel outside that country. • • http://www.whitehouse.gov/omb/circulars_a122 2004 5/4/2011 http://www.whitehouse.gov/omb/circulars_a 122_2004 5/4/2011 s from a recipient that maintains its records on otherfhan an.accrual basis, the recipient shall not he 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/circularsal 10 5/4/2011 (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 (S) Is not subject to compliance requirements of the Federal program. (d) Use of judgment 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 xpended under this part. However, free rent received as part 9 ending after December 31, 2003) . Non-Federal 8 ely 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 one 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 nonprofit 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. 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 terra"foreign travel"fora non-profit organization located in a foreign country means travel outside that country. • • http://www.whitehouse.gov/omb/circulars_a122 2004 5/4/2011 http://www.whitehouse.gov/omb/circulars_a 122_2004 5/4/2011 s from a recipient that maintains its records on otherfhan an.accrual basis, the recipient shall not he 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/circularsal 10 5/4/2011 (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 • consistent with other applicable laws and regulations, arrange for funding the full cost of such additional audits. 11 xpended under this part. However, free rent received as part 9 ending after December 31, 2003) . Non-Federal 8 ely 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 one 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 nonprofit 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. 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 terra"foreign travel"fora non-profit organization located in a foreign country means travel outside that country. • • http://www.whitehouse.gov/omb/circulars_a122 2004 5/4/2011 http://www.whitehouse.gov/omb/circulars_a 122_2004 5/4/2011 s from a recipient that maintains its records on otherfhan an.accrual basis, the recipient shall not he 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/circularsal 10 5/4/2011 (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. • §_.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 § .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 • 9 ending after December 31, 2003) . Non-Federal 8 ely 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 one 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 nonprofit 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. 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 terra"foreign travel"fora non-profit organization located in a foreign country means travel outside that country. • • http://www.whitehouse.gov/omb/circulars_a122 2004 5/4/2011 http://www.whitehouse.gov/omb/circulars_a 122_2004 5/4/2011 s from a recipient that maintains its records on otherfhan an.accrual basis, the recipient shall not he 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/circularsal 10 5/4/2011 (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 organization must justify and document these conditions one 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 nonprofit 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. 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 terra"foreign travel"fora non-profit organization located in a foreign country means travel outside that country. • • http://www.whitehouse.gov/omb/circulars_a122 2004 5/4/2011 http://www.whitehouse.gov/omb/circulars_a 122_2004 5/4/2011 s from a recipient that maintains its records on otherfhan an.accrual basis, the recipient shall not he 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/circularsal 10 5/4/2011 • § . 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 § .230, § .300 through §_.305, § .315, § .320 (f) through § .320(j) , § .400 through§ .405, § .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 § .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 § .31.5(c) , respectively. § .305 Auditor selection. 15 ilable, 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 organization must justify and document these conditions one 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 nonprofit 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. 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 terra"foreign travel"fora non-profit organization located in a foreign country means travel outside that country. • • http://www.whitehouse.gov/omb/circulars_a122 2004 5/4/2011 http://www.whitehouse.gov/omb/circulars_a 122_2004 5/4/2011 s from a recipient that maintains its records on otherfhan an.accrual basis, the recipient shall not he 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/circularsal 10 5/4/2011 (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 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 nonprofit 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. 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 terra"foreign travel"fora non-profit organization located in a foreign country means travel outside that country. • • http://www.whitehouse.gov/omb/circulars_a122 2004 5/4/2011 http://www.whitehouse.gov/omb/circulars_a 122_2004 5/4/2011 s from a recipient that maintains its records on otherfhan an.accrual basis, the recipient shall not he 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/circularsal 10 5/4/2011 • (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 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 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 nonprofit 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. 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 terra"foreign travel"fora non-profit organization located in a foreign country means travel outside that country. • • http://www.whitehouse.gov/omb/circulars_a122 2004 5/4/2011 http://www.whitehouse.gov/omb/circulars_a 122_2004 5/4/2011 s from a recipient that maintains its records on otherfhan an.accrual basis, the recipient shall not he 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/circularsal 10 5/4/2011 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 reportable conditions 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 reportable conditions 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 al 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 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 nonprofit 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. 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 terra"foreign travel"fora non-profit organization located in a foreign country means travel outside that country. • • http://www.whitehouse.gov/omb/circulars_a122 2004 5/4/2011 http://www.whitehouse.gov/omb/circulars_a 122_2004 5/4/2011 s from a recipient that maintains its records on otherfhan an.accrual basis, the recipient shall not he 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/circularsal 10 5/4/2011 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 opinion) . (ii) Where applicable, a statement that reportable conditions 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 reportable conditions 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 al 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 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 nonprofit 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. 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 terra"foreign travel"fora non-profit organization located in a foreign country means travel outside that country. • • http://www.whitehouse.gov/omb/circulars_a122 2004 5/4/2011 http://www.whitehouse.gov/omb/circulars_a 122_2004 5/4/2011 s from a recipient that maintains its records on otherfhan an.accrual basis, the recipient shall not he 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/circularsal 10 5/4/2011 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 S .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 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 for: (1) The Federal clearinghouse to retain as an archival copy; and (2) Each Federal awarding agency when the schedule of findings and questioned costs disclosed audit findings relating to Federal awards that the Federal awarding agency provided directly or the summary schedule of prior audit• findings reported the status of any audit findings relating to Federal awards that the Federal awarding agency provided directly. (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 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 18 al 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 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 nonprofit 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. 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 terra"foreign travel"fora non-profit organization located in a foreign country means travel outside that country. • • http://www.whitehouse.gov/omb/circulars_a122 2004 5/4/2011 http://www.whitehouse.gov/omb/circulars_a 122_2004 5/4/2011 s from a recipient that maintains its records on otherfhan an.accrual basis, the recipient shall not he 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/circularsal 10 5/4/2011 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. ards 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 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 nonprofit 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. 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 terra"foreign travel"fora non-profit organization located in a foreign country means travel outside that country. • • http://www.whitehouse.gov/omb/circulars_a122 2004 5/4/2011 http://www.whitehouse.gov/omb/circulars_a 122_2004 5/4/2011 s from a recipient that maintains its records on otherfhan an.accrual basis, the recipient shall not he 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/circularsal 10 5/4/2011 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 gency 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. ards 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 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 nonprofit 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. 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 terra"foreign travel"fora non-profit organization located in a foreign country means travel outside that country. • • http://www.whitehouse.gov/omb/circulars_a122 2004 5/4/2011 http://www.whitehouse.gov/omb/circulars_a 122_2004 5/4/2011 s from a recipient that maintains its records on otherfhan an.accrual basis, the recipient shall not he 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/circularsal 10 5/4/2011 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. i 23 ntial 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. ards 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 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 nonprofit 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. 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 terra"foreign travel"fora non-profit organization located in a foreign country means travel outside that country. • • http://www.whitehouse.gov/omb/circulars_a122 2004 5/4/2011 http://www.whitehouse.gov/omb/circulars_a 122_2004 5/4/2011 s from a recipient that maintains its records on otherfhan an.accrual basis, the recipient shall not he 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/circularsal 10 5/4/2011 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 S .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 4 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 reportable condition (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 audit advice and liaison to auditees and auditors. (2) Consider auditee requests for extensions to the report 21. ards 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 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 nonprofit 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. 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 terra"foreign travel"fora non-profit organization located in a foreign country means travel outside that country. • • http://www.whitehouse.gov/omb/circulars_a122 2004 5/4/2011 http://www.whitehouse.gov/omb/circulars_a 122_2004 5/4/2011 s from a recipient that maintains its records on otherfhan an.accrual basis, the recipient shall not he 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/circularsal 10 5/4/2011 • 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 . (2) Consider auditee requests for extensions to the report 21. ards 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 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 nonprofit 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. 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 terra"foreign travel"fora non-profit organization located in a foreign country means travel outside that country. • • http://www.whitehouse.gov/omb/circulars_a122 2004 5/4/2011 http://www.whitehouse.gov/omb/circulars_a 122_2004 5/4/2011 s from a recipient that maintains its records on otherfhan an.accrual basis, the recipient shall not he 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/circularsal 10 5/4/2011 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 reportable conditions 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 reportable conditions 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 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 . (2) Consider auditee requests for extensions to the report 21. ards 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 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 nonprofit 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. 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 terra"foreign travel"fora non-profit organization located in a foreign country means travel outside that country. • • http://www.whitehouse.gov/omb/circulars_a122 2004 5/4/2011 http://www.whitehouse.gov/omb/circulars_a 122_2004 5/4/2011 s from a recipient that maintains its records on otherfhan an.accrual basis, the recipient shall not he 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/circularsal 10 5/4/2011 (a) Audit findings reported. The auditor shall report the following as audit findings in a schedule of findings and questioned costs: (1) Reportable conditions in internal control over major programs. The auditor' s determination of whether a deficiency in internal control is a reportable condition 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 reportable conditions 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 l agency. For example, the National Institutes of Health is a major subdivision in the Department of Health and Human Services. 16 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 nonprofit 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. 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 terra"foreign travel"fora non-profit organization located in a foreign country means travel outside that country. • • http://www.whitehouse.gov/omb/circulars_a122 2004 5/4/2011 http://www.whitehouse.gov/omb/circulars_a 122_2004 5/4/2011 s from a recipient that maintains its records on otherfhan an.accrual basis, the recipient shall not he 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/circularsal 10 5/4/2011 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 rms 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 l agency. For example, the National Institutes of Health is a major subdivision in the Department of Health and Human Services. 16 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 nonprofit 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. 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 terra"foreign travel"fora non-profit organization located in a foreign country means travel outside that country. • • http://www.whitehouse.gov/omb/circulars_a122 2004 5/4/2011 http://www.whitehouse.gov/omb/circulars_a 122_2004 5/4/2011 s from a recipient that maintains its records on otherfhan an.accrual basis, the recipient shall not he 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/circularsal 10 5/4/2011 .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 § .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 § .510 (a) (3) and § .510 (a) (4) , fraud under § .510(a) (6) , and audit follow-up for the summary schedule of prior audit findings under § .510(a) (7) do not preclude the Type A program from being low-risk. The auditor shall consider: the criteria in § .525(c) , § .525(d) (1) , § .525 (d) (2) , and § .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 ties to arrive at a management decision. The following specific information shall be 27 l agency. For example, the National Institutes of Health is a major subdivision in the Department of Health and Human Services. 16 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 nonprofit 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. 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 terra"foreign travel"fora non-profit organization located in a foreign country means travel outside that country. • • http://www.whitehouse.gov/omb/circulars_a122 2004 5/4/2011 http://www.whitehouse.gov/omb/circulars_a 122_2004 5/4/2011 s from a recipient that maintains its records on otherfhan an.accrual basis, the recipient shall not he 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/circularsal 10 5/4/2011 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 reportable conditions 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 lowrisk 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 ay 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 ties to arrive at a management decision. The following specific information shall be 27 l agency. For example, the National Institutes of Health is a major subdivision in the Department of Health and Human Services. 16 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 nonprofit 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. 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 terra"foreign travel"fora non-profit organization located in a foreign country means travel outside that country. • • http://www.whitehouse.gov/omb/circulars_a122 2004 5/4/2011 http://www.whitehouse.gov/omb/circulars_a 122_2004 5/4/2011 s from a recipient that maintains its records on otherfhan an.accrual basis, the recipient shall not he 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/circularsal 10 5/4/2011 papers the risk analysis process used in determining major programs . (h) Auditor's judgment . 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 • U.S.C. 3515) . The Federal agency shall notify the recipient and, if known, the auditor at least 180 days prior to the • 29 ties to arrive at a management decision. The following specific information shall be 27 l agency. For example, the National Institutes of Health is a major subdivision in the Department of Health and Human Services. 16 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 nonprofit 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. 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 terra"foreign travel"fora non-profit organization located in a foreign country means travel outside that country. • • http://www.whitehouse.gov/omb/circulars_a122 2004 5/4/2011 http://www.whitehouse.gov/omb/circulars_a 122_2004 5/4/2011 s from a recipient that maintains its records on otherfhan an.accrual basis, the recipient shall not he 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/circularsal 10 5/4/2011 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 icularly 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 • U.S.C. 3515) . The Federal agency shall notify the recipient and, if known, the auditor at least 180 days prior to the • 29 ties to arrive at a management decision. The following specific information shall be 27 l agency. For example, the National Institutes of Health is a major subdivision in the Department of Health and Human Services. 16 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 nonprofit 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. 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 terra"foreign travel"fora non-profit organization located in a foreign country means travel outside that country. • • http://www.whitehouse.gov/omb/circulars_a122 2004 5/4/2011 http://www.whitehouse.gov/omb/circulars_a 122_2004 5/4/2011 s from a recipient that maintains its records on otherfhan an.accrual basis, the recipient shall not he 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/circularsal 10 5/4/2011 • (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 . 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 icularly 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 • U.S.C. 3515) . The Federal agency shall notify the recipient and, if known, the auditor at least 180 days prior to the • 29 ties to arrive at a management decision. The following specific information shall be 27 l agency. For example, the National Institutes of Health is a major subdivision in the Department of Health and Human Services. 16 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 nonprofit 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. 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 terra"foreign travel"fora non-profit organization located in a foreign country means travel outside that country. • • http://www.whitehouse.gov/omb/circulars_a122 2004 5/4/2011 http://www.whitehouse.gov/omb/circulars_a 122_2004 5/4/2011 s from a recipient that maintains its records on otherfhan an.accrual basis, the recipient shall not he 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/circularsal 10 5/4/2011 C-25A CITY OF OMAHA LEGISLATIVE CHAMBER Omaha,Nebraska RESOLVED BY THE CITY COUNCIL OF THE CITY OF OMAHA: WHEREAS, the City annually receives Community Development Block Grant funds under Title I of the Housing and Community Development Act of 1974, as amended, for the purpose of benefiting low- and moderate-income residents, eliminating slums and blight, and for other urgent community development needs; and, WHEREAS, the Mayor recommended various projects in the 2011 Consolidated Submission for Community Planning and Development Programs (Consolidated Plan), including the funding of the African American Empowerment Network, Inc., a Nebraska non-profit corporation, Step Up Omaha Job Training and Work Experience Program (Project); and, WHEREAS, the City approved the 2011 Consolidated Plan on December 14, 2010, by Resolution No. 1356, as amended, and $600,000.00 was allocated to the Project; and, WHEREAS, the African American Empowerment Network operates an excellent program providing life skills training, academic guidance, job placement, and other general support to economically disadvantaged persons between the ages of 14 and 24 to assist them in becoming self-sufficient; and, WHEREAS, it is necessary for the City to enter into an agreement with the African American Empowerment Network to provide partial funding support for the Step Up Omaha Job Training and Work Experience Program to enable it to serve more participants; and, WHEREAS, it is in the best interest of the City of Omaha to enter into an agreement with the African American Empowerment Network, Inc., to provide partial funding support for its life skills training and job placement program as part of the City's economic development program. By Councilmember Adopted City Clerk Approved Mayor 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 icularly 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 • U.S.C. 3515) . The Federal agency shall notify the recipient and, if known, the auditor at least 180 days prior to the • 29 ties to arrive at a management decision. The following specific information shall be 27 l agency. For example, the National Institutes of Health is a major subdivision in the Department of Health and Human Services. 16 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 nonprofit 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. 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 terra"foreign travel"fora non-profit organization located in a foreign country means travel outside that country. • • http://www.whitehouse.gov/omb/circulars_a122 2004 5/4/2011 http://www.whitehouse.gov/omb/circulars_a 122_2004 5/4/2011 s from a recipient that maintains its records on otherfhan an.accrual basis, the recipient shall not he 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/circularsal 10 5/4/2011 C-25A CITY OF OMAHA LEGISLATIVE CHAMBER Omaha,Nebraska PAGE 2 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF.THE CITY OF OMAHA: THAT, the attached Agreement, as recommended by the Mayor, between the City of Omaha and the African American Empowerment Network„ Inc., a Nebraska non-profit corporation, 2221 North 24th Street, Omaha, Nebraska 68110, in the amount of$600,000.00, for partial funding of its Step Up Omaha Job Training and Work Experience Program for the period from April 1, 2012, through December 31, 2012, is hereby approved. Funds.shall be paid from the FY 2011 Community Development Block Grant Fund No. 12186, Organization No. 109021. APPRO D AS TO FORM: % ia- C TY A O pATE Plnlsf1695-res By arina4 • C un ilmember Adopted MAY 2-2 2 0.12 '7 !0 ch,y) LA/ 6.,,cydd Approved... Mayor , the African American Empowerment Network operates an excellent program providing life skills training, academic guidance, job placement, and other general support to economically disadvantaged persons between the ages of 14 and 24 to assist them in becoming self-sufficient; and, WHEREAS, it is necessary for the City to enter into an agreement with the African American Empowerment Network to provide partial funding support for the Step Up Omaha Job Training and Work Experience Program to enable it to serve more participants; and, WHEREAS, it is in the best interest of the City of Omaha to enter into an agreement with the African American Empowerment Network, Inc., to provide partial funding support for its life skills training and job placement program as part of the City's economic development program. By Councilmember Adopted City Clerk Approved Mayor 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 icularly 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 • U.S.C. 3515) . The Federal agency shall notify the recipient and, if known, the auditor at least 180 days prior to the • 29 ties to arrive at a management decision. The following specific information shall be 27 l agency. For example, the National Institutes of Health is a major subdivision in the Department of Health and Human Services. 16 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 nonprofit 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. 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 terra"foreign travel"fora non-profit organization located in a foreign country means travel outside that country. • • http://www.whitehouse.gov/omb/circulars_a122 2004 5/4/2011 http://www.whitehouse.gov/omb/circulars_a 122_2004 5/4/2011 s from a recipient that maintains its records on otherfhan an.accrual basis, the recipient shall not he 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/circularsal 10 5/4/2011 • • N-1) N O •O Ch CD pa pa CD k r ., ,-' p O A p CC . aO k, • " C6\• 0 0. Crq •c•--( ° t--') ° t•CCj" •n9- ''T OZ t�I r* -^t. N n. . o C7 0 �-�' — 0 cD 0 Z 0 Q •N O c`< a COD . Aa r O•N. `C a N ICD CD � co Q n � N -t '-h YG �. wo z �a � � Nab � � � CD 4 'fy"' o p '-0 O CD v/i n. r 4(11 Q C) .-, -4 CD o CD pa 'T� . 0, v) x "0 rtiy.. . A) R t-C v1 � : u \ Z • . Q g C. . •I F h A• Mayor , the African American Empowerment Network operates an excellent program providing life skills training, academic guidance, job placement, and other general support to economically disadvantaged persons between the ages of 14 and 24 to assist them in becoming self-sufficient; and, WHEREAS, it is necessary for the City to enter into an agreement with the African American Empowerment Network to provide partial funding support for the Step Up Omaha Job Training and Work Experience Program to enable it to serve more participants; and, WHEREAS, it is in the best interest of the City of Omaha to enter into an agreement with the African American Empowerment Network, Inc., to provide partial funding support for its life skills training and job placement program as part of the City's economic development program. By Councilmember Adopted City Clerk Approved Mayor 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 icularly 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 • U.S.C. 3515) . The Federal agency shall notify the recipient and, if known, the auditor at least 180 days prior to the • 29 ties to arrive at a management decision. The following specific information shall be 27 l agency. For example, the National Institutes of Health is a major subdivision in the Department of Health and Human Services. 16 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 nonprofit 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. 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 terra"foreign travel"fora non-profit organization located in a foreign country means travel outside that country. • • http://www.whitehouse.gov/omb/circulars_a122 2004 5/4/2011 http://www.whitehouse.gov/omb/circulars_a 122_2004 5/4/2011 s from a recipient that maintains its records on otherfhan an.accrual basis, the recipient shall not he 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/circularsal 10 5/4/2011