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RES 2011-0995 - Agmt with Habitat for Humanity of Omaha Inc to construct houses in Orchard Hill neighborhood °tAAHA./ye - o� s� Planning Department EC ° r �"fiMC7 t Y, Omaha/Douglas Civic Center irti �i " L 1819 Farnam Street,Suite 1100 'f;® r*Alto � p Omaha,Nebraska 68183 ° I t AUG _3 A ! 55 (402)444-5150 ��TFD FEBR`�r��ry • Telefax(402)444-6140 i l ' {fi R.E.Cunningham,RA,F.SAME City of Omaha l e i tf e Director Jim Suttle,Mayor August 16, 2011 • Honorable President and Members of the City Council, The attached Resolution approves an Agreement in the amount of $250,000.00 between the City of Omaha and Habitat for Humanity of Omaha, Inc., a Nebraska Non-profit Corporation (hereinafter referred to as "HFHO"), 2204 Ames Avenue, Omaha, Nebraska 68110. HFHO will construct five affordable single-family houses in the Orchard Hill neighborhood, generally located northeast of 42nd and Hamilton Streets. Funding is comprised of$235,000.00 in Neighborhood Stabilization Program Three (NSP3) grant funds and $15,000.00 in City,General funds from the annual allotment of HOME matching funds. As part of the Agreement the City will convey lots to HFHO at no cost. The City applied for and received $260,000.00 in NSP3 funds from the State of Nebraska Department of Economic Development for Omaha Habitat New Housing Program. The grant provides $235,000.00 for the construction of five houses by HFHO and $25,000.00 to the City for general administration and program delivery costs. As part of the contract with the State, the City will provide $15,000.00 in HOME Match General Funds to HFHO for the project. HFHO will provide $375,000.00 in contributions from its funds and volunteers. The project is authorized by Resolution No. 477, as approved by the City • Council on April 19, 2011. HFHO (Contractor) has on file a current Annual Contract Compliance Report Form (CC-1). As is City policy, the Human Rights and Relations Department will review the contractor to ensure compliance with the Contract Compliance Ordinance. Funds in the amount of $235,000.00 shall be paid from the FY 2011 NSP3 Housing Development Program, Fund No. 12207, Organization No. 129166 and in the amount of$15,000.00 from the FY 2011 HOME General Fund Match, Fund No. 11111, Organization No. 109023. Your favorable consideration of this Resolution will be appreciated. S'• ere . Re to City Council for Consideration: R -. unningha�"" '' � Ma s O lice 'Date Planning Directo1 Approved as to Funding: Oproved: ago.- w,,,ecz4.„, 7/9 q Pam Spaccarotella Date Hunan Rights and Relations Department Date Finance Director ¢� Plnlsf1566-cover letter 10 . @ $100.00 EACH . $1,000.00 Heimes Corp. $165.00 EACH $1,650.00 Cedar Construction $250.00 EACH $2,500.00 MFT Construction $200.00 EACH _ $2,000.00 L. G. Roloff Construction Company,Inc. $96.16 EACH $961.60 Vincentini Plumbing $250.00 EACH $2,500.00 • Page 8 of 9, 7/15/2011 8:11:36 AM, Bid Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD 8:11:36 AM, Bid Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD The Special Sewer Connection fee shall be collected by the 6 • nts. Prior to final signature by the City of this Agreement, Subdivider will provide City with an irrevocable letter of credit issued by a reputable financial institution in an amount no less than Subdivider's required contribution. City and Subdivider may agree to other financial assurance in their sole discretion. In the event that Subdivider fails to maintain such financial assurance or defaults in its obligation to make the financial contribution, City shall have the right to suspend processing and approval of building permits for the Area to be Developed until such default is cured. 4 lled until such time as they will not be negatively 2 ipril' g tQQ 1 q 1 a l [z 4x m5-x P ag4ghO#0§ ggie gE } 3i ,?m Y +;i riri yr; liiea _444 .- :4 - I z o p ,�C R ,B8 '6 Bf A, REE Qg ` F I� 9 i 7 A" i i' �1 1 - d h SI Or R fRf Rdag§'d .,X�� "45g iirp Ro n , W EFpp eE hid; _ $�.�_Z. °�- m p'g.b tSy�itJ daR F L �:. R '' FSic $ 4Ba� 11191aa : . 111 1 DIN H� 5ex.x2 i i O � ,p 3a � ggS �p�m� � 'f`./+ $ $ii' Sa4S�F3t?g£ al�9 1 Will ! 'so A hi i R 4 i PPiI i FOOT.PLAT w' km�eoom,o H PIP-� O�OLSSON A -- 1 f STERLING RIDGE _..._.___ ASSOCIATES N !" ula'E OMANANENNASKA I2a1) - REVISIONS .........---.—_.... 'u'.:`.rsn ..v":,:m ceived 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 Slates,and any United States territories and possessions.However,the tern"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. http://www.whitehouse.gov/omb/circulars_a122_2004/ 8/17/2011 of a cost grouping directly to the function benefited,the allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an-engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. • • http://www.whitehouse.gov/omb/circulars a122_2004/ 8/17/2011 NEIGHBORHOOD STABILIZATION PROGRAM (NSP) FUNDS GRANT AGREEMENT BETWEEN THE CITY OF OMAHA AND HABITAT FOR HUMANITY OF OMAHA, INC., A NEBRASKA NON-PROFIT CORPORATION FOR New Construction of five (5) single-family houses on scattered sites in Census Tract 53 (the Orchard Hill Neighborhood and vicinity) to be sold to Low Income Households with annual incomes at 50% and below the Median Family Income (MFI) Omaha,Nebraska 68110 NSP Contract No. 11-NS-04 t °n4 f w (..) L o cu a N �' �. O a� o v, A, () = 4- 7 BCD `` .• p, ' -AD p , , p, • '-' A(• c� a `b �O``s o 2 `n a' f ' 'bO `° 7� Et) CD CD CD 0 'C AD UQ rn CD Ao En kC . CD A3 Cn 1 x Z $ - TABLE OF CONTENTS SECTION 1 DEFINITIONS AND ABBREVIATIONS SECTION 2 RESPONSIBILITIES OF DEVELOPER 2.01 Overall Project Performance 2.02 Project Budget 2.03 Term of the Agreement SECTION 3 CONDITIONS FOR RECEIPT OF CITY FINANCING 3.01 Conveyance of Land to HFHO 3.02 Documents Required by City 3.02.1 Property Insurance 3.02.2 Contracts 3.02.3 Bonding/Letter of Credit 3.02.4 Contractors' Insurance and Workers' Compensation 3.02.5 Plans Submission 3.02.6 Affirmative Marketing Plan 3.02.7 Minority/Women Owned Business Enterprise Plan 3.02.8 Eligible Contractors 3.02.9 Funding Compliance Deadline 3.02.10 Section 504 Exemption Checklist 3.01.11 Security for Grant SECTION 4 PROJECT RESPONSIBILITIES OF THE DEVELOPER 4.01 Eligible Use of Funds 4.02 Terms and Conditions 4.03 Breach of Agreement 4.04 Lien Waivers 4.05 Ineligible/Eligible Cost 4.06 Lead-Based Paint Prohibition 4.07 Ongoing Property Restrictions 4.08 Davis-Bacon Exemption Checklist 4.09 Property Standards 4.10 Affirmative Marketing Policy 4.11 Maintenance of Property 4.12 Pre-Construction Meeting 4.13 National Environment Policy Act of 1969 SECTION 5 GENERAL ADMINISTRATION REQUIREMENTS OF DEVELOPER 5.01 Financial Management 5.02 Documentation and Record-Keeping 5.03 Reports administration and program delivery costs. As part of the contract with the State, the City will provide $15,000.00 in HOME Match General Funds to HFHO for the project. HFHO will provide $375,000.00 in contributions from its funds and volunteers. The project is authorized by Resolution No. 477, as approved by the City • Council on April 19, 2011. HFHO (Contractor) has on file a current Annual Contract Compliance Report Form (CC-1). As is City policy, the Human Rights and Relations Department will review the contractor to ensure compliance with the Contract Compliance Ordinance. Funds in the amount of $235,000.00 shall be paid from the FY 2011 NSP3 Housing Development Program, Fund No. 12207, Organization No. 129166 and in the amount of$15,000.00 from the FY 2011 HOME General Fund Match, Fund No. 11111, Organization No. 109023. Your favorable consideration of this Resolution will be appreciated. S'• ere . Re to City Council for Consideration: R -. unningha�"" '' � Ma s O lice 'Date Planning Directo1 Approved as to Funding: Oproved: ago.- w,,,ecz4.„, 7/9 q Pam Spaccarotella Date Hunan Rights and Relations Department Date Finance Director ¢� Plnlsf1566-cover letter 10 . @ $100.00 EACH . $1,000.00 Heimes Corp. $165.00 EACH $1,650.00 Cedar Construction $250.00 EACH $2,500.00 MFT Construction $200.00 EACH _ $2,000.00 L. G. Roloff Construction Company,Inc. $96.16 EACH $961.60 Vincentini Plumbing $250.00 EACH $2,500.00 • Page 8 of 9, 7/15/2011 8:11:36 AM, Bid Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD 8:11:36 AM, Bid Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD The Special Sewer Connection fee shall be collected by the 6 • nts. Prior to final signature by the City of this Agreement, Subdivider will provide City with an irrevocable letter of credit issued by a reputable financial institution in an amount no less than Subdivider's required contribution. City and Subdivider may agree to other financial assurance in their sole discretion. In the event that Subdivider fails to maintain such financial assurance or defaults in its obligation to make the financial contribution, City shall have the right to suspend processing and approval of building permits for the Area to be Developed until such default is cured. 4 lled until such time as they will not be negatively 2 ipril' g tQQ 1 q 1 a l [z 4x m5-x P ag4ghO#0§ ggie gE } 3i ,?m Y +;i riri yr; liiea _444 .- :4 - I z o p ,�C R ,B8 '6 Bf A, REE Qg ` F I� 9 i 7 A" i i' �1 1 - d h SI Or R fRf Rdag§'d .,X�� "45g iirp Ro n , W EFpp eE hid; _ $�.�_Z. °�- m p'g.b tSy�itJ daR F L �:. R '' FSic $ 4Ba� 11191aa : . 111 1 DIN H� 5ex.x2 i i O � ,p 3a � ggS �p�m� � 'f`./+ $ $ii' Sa4S�F3t?g£ al�9 1 Will ! 'so A hi i R 4 i PPiI i FOOT.PLAT w' km�eoom,o H PIP-� O�OLSSON A -- 1 f STERLING RIDGE _..._.___ ASSOCIATES N !" ula'E OMANANENNASKA I2a1) - REVISIONS .........---.—_.... 'u'.:`.rsn ..v":,:m ceived 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 Slates,and any United States territories and possessions.However,the tern"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. http://www.whitehouse.gov/omb/circulars_a122_2004/ 8/17/2011 of a cost grouping directly to the function benefited,the allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an-engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. • • http://www.whitehouse.gov/omb/circulars a122_2004/ 8/17/2011 5.04 Financial Status Report 5.05 Record Retention 5.06 Personnel and Participant Conditions SECTION 6 DEVELOPER'S COMPLIANCE WITH OTHER FEDERAL REGULATIONS 6.01 Environmental Review 6.02 Uniform Relocation Act 6.03 Soil Work Policy SECTION 7 RESPONSIBILITIES OF THE CITY 7.01 Performance Monitoring 7.02 Payments 7.03 Progress Payments 7.04 Inspections 7.05 Technical Assistance SECTION 8 MUTUAL AGREEMENTS BETWEEN CITY AND DEVELOPER 8.01 Release of Information Laws 8.02 Applicable Laws 8.03 Interest of the City 8.04 Independent Contractor 8.05 Project Roles 8.06 Captions 8.07 Merger 8.08 Modification 8.09 Assignment 8.10 Strict Compliance 8.11 Termination 8.12 Reversion of Assets 8.13 Indemnification 8.14 Unenforceable Provisions 8.15 Disclosure of Lobbying 8.16 Notices 8.17 Applicability SECTION 9 DEFAULT PROVISIONS 9.01 Remedies SCHEDULE OF EXHIBITS AND ATTACHMENTS Plnlsf1566-table of contents ions 4.08 Davis-Bacon Exemption Checklist 4.09 Property Standards 4.10 Affirmative Marketing Policy 4.11 Maintenance of Property 4.12 Pre-Construction Meeting 4.13 National Environment Policy Act of 1969 SECTION 5 GENERAL ADMINISTRATION REQUIREMENTS OF DEVELOPER 5.01 Financial Management 5.02 Documentation and Record-Keeping 5.03 Reports administration and program delivery costs. As part of the contract with the State, the City will provide $15,000.00 in HOME Match General Funds to HFHO for the project. HFHO will provide $375,000.00 in contributions from its funds and volunteers. The project is authorized by Resolution No. 477, as approved by the City • Council on April 19, 2011. HFHO (Contractor) has on file a current Annual Contract Compliance Report Form (CC-1). As is City policy, the Human Rights and Relations Department will review the contractor to ensure compliance with the Contract Compliance Ordinance. Funds in the amount of $235,000.00 shall be paid from the FY 2011 NSP3 Housing Development Program, Fund No. 12207, Organization No. 129166 and in the amount of$15,000.00 from the FY 2011 HOME General Fund Match, Fund No. 11111, Organization No. 109023. Your favorable consideration of this Resolution will be appreciated. S'• ere . Re to City Council for Consideration: R -. unningha�"" '' � Ma s O lice 'Date Planning Directo1 Approved as to Funding: Oproved: ago.- w,,,ecz4.„, 7/9 q Pam Spaccarotella Date Hunan Rights and Relations Department Date Finance Director ¢� Plnlsf1566-cover letter 10 . @ $100.00 EACH . $1,000.00 Heimes Corp. $165.00 EACH $1,650.00 Cedar Construction $250.00 EACH $2,500.00 MFT Construction $200.00 EACH _ $2,000.00 L. G. Roloff Construction Company,Inc. $96.16 EACH $961.60 Vincentini Plumbing $250.00 EACH $2,500.00 • Page 8 of 9, 7/15/2011 8:11:36 AM, Bid Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD 8:11:36 AM, Bid Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD The Special Sewer Connection fee shall be collected by the 6 • nts. Prior to final signature by the City of this Agreement, Subdivider will provide City with an irrevocable letter of credit issued by a reputable financial institution in an amount no less than Subdivider's required contribution. City and Subdivider may agree to other financial assurance in their sole discretion. In the event that Subdivider fails to maintain such financial assurance or defaults in its obligation to make the financial contribution, City shall have the right to suspend processing and approval of building permits for the Area to be Developed until such default is cured. 4 lled until such time as they will not be negatively 2 ipril' g tQQ 1 q 1 a l [z 4x m5-x P ag4ghO#0§ ggie gE } 3i ,?m Y +;i riri yr; liiea _444 .- :4 - I z o p ,�C R ,B8 '6 Bf A, REE Qg ` F I� 9 i 7 A" i i' �1 1 - d h SI Or R fRf Rdag§'d .,X�� "45g iirp Ro n , W EFpp eE hid; _ $�.�_Z. °�- m p'g.b tSy�itJ daR F L �:. R '' FSic $ 4Ba� 11191aa : . 111 1 DIN H� 5ex.x2 i i O � ,p 3a � ggS �p�m� � 'f`./+ $ $ii' Sa4S�F3t?g£ al�9 1 Will ! 'so A hi i R 4 i PPiI i FOOT.PLAT w' km�eoom,o H PIP-� O�OLSSON A -- 1 f STERLING RIDGE _..._.___ ASSOCIATES N !" ula'E OMANANENNASKA I2a1) - REVISIONS .........---.—_.... 'u'.:`.rsn ..v":,:m ceived 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 Slates,and any United States territories and possessions.However,the tern"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. http://www.whitehouse.gov/omb/circulars_a122_2004/ 8/17/2011 of a cost grouping directly to the function benefited,the allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an-engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. • • http://www.whitehouse.gov/omb/circulars a122_2004/ 8/17/2011 NEIGHBORHOOD STABILIZATION PROGRAM THREE (NSP3) FUNDS GRANT AGREEMENT HABITAT FOR HUMANITY OF OMAHA,INC. (HFHO) NEW CONSTRUCTION OF HOUSES TO BE SOLD TO ELIGIBLE HOMEBUYERS THIS AGREEMENT is entered into by and between the City of Omaha (hereinafter referred to as the "City") and Habitat For Humanity of Omaha, Inc., a Nebraska Non-profit Corporation, (hereinafter referred to as "HFHO"), Amanda Brewer, Executive Director/President, 2204 Ames Avenue, Omaha, Nebraska, 68110, based on terms, conditions and provisions as set forth below. RECITALS: WHEREAS, 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 Neighborhood Stabilization Program 3 (hereinafter sometimes referred to as "NSP3") funds from the State of Nebraska Department of Economic Development (NDED) for the purpose of providing affordable housing benefiting low-, moderate-, and middle-income (LMMI)persons; and, WHEREAS, the City received approval from the NDED and funds in the amount of $260,000.00 were released from the State under Contract No. 11-NS-04, a copy of which is 1 ion and Record-Keeping 5.03 Reports administration and program delivery costs. As part of the contract with the State, the City will provide $15,000.00 in HOME Match General Funds to HFHO for the project. HFHO will provide $375,000.00 in contributions from its funds and volunteers. The project is authorized by Resolution No. 477, as approved by the City • Council on April 19, 2011. HFHO (Contractor) has on file a current Annual Contract Compliance Report Form (CC-1). As is City policy, the Human Rights and Relations Department will review the contractor to ensure compliance with the Contract Compliance Ordinance. Funds in the amount of $235,000.00 shall be paid from the FY 2011 NSP3 Housing Development Program, Fund No. 12207, Organization No. 129166 and in the amount of$15,000.00 from the FY 2011 HOME General Fund Match, Fund No. 11111, Organization No. 109023. Your favorable consideration of this Resolution will be appreciated. S'• ere . Re to City Council for Consideration: R -. unningha�"" '' � Ma s O lice 'Date Planning Directo1 Approved as to Funding: Oproved: ago.- w,,,ecz4.„, 7/9 q Pam Spaccarotella Date Hunan Rights and Relations Department Date Finance Director ¢� Plnlsf1566-cover letter 10 . @ $100.00 EACH . $1,000.00 Heimes Corp. $165.00 EACH $1,650.00 Cedar Construction $250.00 EACH $2,500.00 MFT Construction $200.00 EACH _ $2,000.00 L. G. Roloff Construction Company,Inc. $96.16 EACH $961.60 Vincentini Plumbing $250.00 EACH $2,500.00 • Page 8 of 9, 7/15/2011 8:11:36 AM, Bid Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD 8:11:36 AM, Bid Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD The Special Sewer Connection fee shall be collected by the 6 • nts. Prior to final signature by the City of this Agreement, Subdivider will provide City with an irrevocable letter of credit issued by a reputable financial institution in an amount no less than Subdivider's required contribution. City and Subdivider may agree to other financial assurance in their sole discretion. In the event that Subdivider fails to maintain such financial assurance or defaults in its obligation to make the financial contribution, City shall have the right to suspend processing and approval of building permits for the Area to be Developed until such default is cured. 4 lled until such time as they will not be negatively 2 ipril' g tQQ 1 q 1 a l [z 4x m5-x P ag4ghO#0§ ggie gE } 3i ,?m Y +;i riri yr; liiea _444 .- :4 - I z o p ,�C R ,B8 '6 Bf A, REE Qg ` F I� 9 i 7 A" i i' �1 1 - d h SI Or R fRf Rdag§'d .,X�� "45g iirp Ro n , W EFpp eE hid; _ $�.�_Z. °�- m p'g.b tSy�itJ daR F L �:. R '' FSic $ 4Ba� 11191aa : . 111 1 DIN H� 5ex.x2 i i O � ,p 3a � ggS �p�m� � 'f`./+ $ $ii' Sa4S�F3t?g£ al�9 1 Will ! 'so A hi i R 4 i PPiI i FOOT.PLAT w' km�eoom,o H PIP-� O�OLSSON A -- 1 f STERLING RIDGE _..._.___ ASSOCIATES N !" ula'E OMANANENNASKA I2a1) - REVISIONS .........---.—_.... 'u'.:`.rsn ..v":,:m ceived 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 Slates,and any United States territories and possessions.However,the tern"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. http://www.whitehouse.gov/omb/circulars_a122_2004/ 8/17/2011 of a cost grouping directly to the function benefited,the allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an-engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. • • http://www.whitehouse.gov/omb/circulars a122_2004/ 8/17/2011 attached hereto as Attachment No. 1 and incorporated herein by this reference as though fully set forth; and, WHEREAS, the NSP3 funds were provided in §1497 of Subtitle H of Title XIV of the Dodd-Frank Wall Street Reform and Consumer Protection Act, Federal Public Law 111-203 of 2010 (the "Dodd-Frank Act"); and, WHEREAS, HFHO has requested NSP3 funds in the amount of $235,000.00 and $15,000.00 in City General Funds for partial financing for the new construction of five (5) single-family houses to be located in Census Tract 53, including the Orchard Hill neighborhood and vicinity, to be occupied by qualified homebuyers as their principal place of residence whose annual household incomes are 50% and below of the Median Family Income by Family Size (MFI) as established annually by the U.S. Department of Housing and Urban Development; and upon completion of the construction work, and the sale of the property to a qualified homebuyer, HFHO will be reimbursed $50,000.00 per house (for a total of $250,000.00) for actual construction costs for the project(hereinafter referred to as the "Project"); and, WHEREAS, the HFHO has submitted an estimation of the Project cost in the amount of $650,000.00, comprised of$260,000.00 in NSP3 funds, $15,000.00 in City General Funds and $375,000.00 in other funding from HFHO and its volunteers; and, WHEREAS, it is in the best interest of the City and the residents thereof that the City enter into an Agreement with HFHO to complete this worthwhile Project. 2 5.03 Reports administration and program delivery costs. As part of the contract with the State, the City will provide $15,000.00 in HOME Match General Funds to HFHO for the project. HFHO will provide $375,000.00 in contributions from its funds and volunteers. The project is authorized by Resolution No. 477, as approved by the City • Council on April 19, 2011. HFHO (Contractor) has on file a current Annual Contract Compliance Report Form (CC-1). As is City policy, the Human Rights and Relations Department will review the contractor to ensure compliance with the Contract Compliance Ordinance. Funds in the amount of $235,000.00 shall be paid from the FY 2011 NSP3 Housing Development Program, Fund No. 12207, Organization No. 129166 and in the amount of$15,000.00 from the FY 2011 HOME General Fund Match, Fund No. 11111, Organization No. 109023. Your favorable consideration of this Resolution will be appreciated. S'• ere . Re to City Council for Consideration: R -. unningha�"" '' � Ma s O lice 'Date Planning Directo1 Approved as to Funding: Oproved: ago.- w,,,ecz4.„, 7/9 q Pam Spaccarotella Date Hunan Rights and Relations Department Date Finance Director ¢� Plnlsf1566-cover letter 10 . @ $100.00 EACH . $1,000.00 Heimes Corp. $165.00 EACH $1,650.00 Cedar Construction $250.00 EACH $2,500.00 MFT Construction $200.00 EACH _ $2,000.00 L. G. Roloff Construction Company,Inc. $96.16 EACH $961.60 Vincentini Plumbing $250.00 EACH $2,500.00 • Page 8 of 9, 7/15/2011 8:11:36 AM, Bid Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD 8:11:36 AM, Bid Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD The Special Sewer Connection fee shall be collected by the 6 • nts. Prior to final signature by the City of this Agreement, Subdivider will provide City with an irrevocable letter of credit issued by a reputable financial institution in an amount no less than Subdivider's required contribution. City and Subdivider may agree to other financial assurance in their sole discretion. In the event that Subdivider fails to maintain such financial assurance or defaults in its obligation to make the financial contribution, City shall have the right to suspend processing and approval of building permits for the Area to be Developed until such default is cured. 4 lled until such time as they will not be negatively 2 ipril' g tQQ 1 q 1 a l [z 4x m5-x P ag4ghO#0§ ggie gE } 3i ,?m Y +;i riri yr; liiea _444 .- :4 - I z o p ,�C R ,B8 '6 Bf A, REE Qg ` F I� 9 i 7 A" i i' �1 1 - d h SI Or R fRf Rdag§'d .,X�� "45g iirp Ro n , W EFpp eE hid; _ $�.�_Z. °�- m p'g.b tSy�itJ daR F L �:. R '' FSic $ 4Ba� 11191aa : . 111 1 DIN H� 5ex.x2 i i O � ,p 3a � ggS �p�m� � 'f`./+ $ $ii' Sa4S�F3t?g£ al�9 1 Will ! 'so A hi i R 4 i PPiI i FOOT.PLAT w' km�eoom,o H PIP-� O�OLSSON A -- 1 f STERLING RIDGE _..._.___ ASSOCIATES N !" ula'E OMANANENNASKA I2a1) - REVISIONS .........---.—_.... 'u'.:`.rsn ..v":,:m ceived 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 Slates,and any United States territories and possessions.However,the tern"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. http://www.whitehouse.gov/omb/circulars_a122_2004/ 8/17/2011 of a cost grouping directly to the function benefited,the allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an-engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. • • http://www.whitehouse.gov/omb/circulars a122_2004/ 8/17/2011 NOW, THEREFORE, IN CONSIDERATION OF THESE MUTAL 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 "Developer" shall mean — Habitat For Humanity of Omaha, Inc., a Nebraska Non-profit Corporation, Amanda Brewer, Executive Director/ President, 2204 Ames Avenue, Omaha,Nebraska, 68110 (See Exhibit"A"). 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 agency or private non-profit organization receiving NSP3 funds to undertake eligible activities. In this Agreement the Subrecipient is the Developer. 1.06 "HUD" shall mean—the U.S. Department of Housing and Urban Development. 1.07 "NDED" shall mean—the Nebraska Department of Economic Development. 1.08 "Neighborhood Stabilization Program 3 (NSP3) Funds" shall mean — that portion of the NSP3 funds awarded to the City from NDED, 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 $260,000.00 payable from the NSP3 Housing Development Program, Fund No. 12207, Organization No. 129166, subject to the terms, conditions and requirements of said Agreement. 1.09 "NSP3 Program Grant" shall mean — a grant in the amount of $47,000.00 per house for a total of $235,000.00 for reimbursement to HFHO for actual construction costs for five (5) houses constructed on scattered sites located within Census Tract 53 after the properties meet NDED Construction Standards and are sold to eligible homebuyer during the affordability period described herein. A total of$25,000.00 NSP3 grant funds shall be available to the City for general administration and program delivery costs. 3 235,000.00 shall be paid from the FY 2011 NSP3 Housing Development Program, Fund No. 12207, Organization No. 129166 and in the amount of$15,000.00 from the FY 2011 HOME General Fund Match, Fund No. 11111, Organization No. 109023. Your favorable consideration of this Resolution will be appreciated. S'• ere . Re to City Council for Consideration: R -. unningha�"" '' � Ma s O lice 'Date Planning Directo1 Approved as to Funding: Oproved: ago.- w,,,ecz4.„, 7/9 q Pam Spaccarotella Date Hunan Rights and Relations Department Date Finance Director ¢� Plnlsf1566-cover letter 10 . @ $100.00 EACH . $1,000.00 Heimes Corp. $165.00 EACH $1,650.00 Cedar Construction $250.00 EACH $2,500.00 MFT Construction $200.00 EACH _ $2,000.00 L. G. Roloff Construction Company,Inc. $96.16 EACH $961.60 Vincentini Plumbing $250.00 EACH $2,500.00 • Page 8 of 9, 7/15/2011 8:11:36 AM, Bid Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD 8:11:36 AM, Bid Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD The Special Sewer Connection fee shall be collected by the 6 • nts. Prior to final signature by the City of this Agreement, Subdivider will provide City with an irrevocable letter of credit issued by a reputable financial institution in an amount no less than Subdivider's required contribution. City and Subdivider may agree to other financial assurance in their sole discretion. In the event that Subdivider fails to maintain such financial assurance or defaults in its obligation to make the financial contribution, City shall have the right to suspend processing and approval of building permits for the Area to be Developed until such default is cured. 4 lled until such time as they will not be negatively 2 ipril' g tQQ 1 q 1 a l [z 4x m5-x P ag4ghO#0§ ggie gE } 3i ,?m Y +;i riri yr; liiea _444 .- :4 - I z o p ,�C R ,B8 '6 Bf A, REE Qg ` F I� 9 i 7 A" i i' �1 1 - d h SI Or R fRf Rdag§'d .,X�� "45g iirp Ro n , W EFpp eE hid; _ $�.�_Z. °�- m p'g.b tSy�itJ daR F L �:. R '' FSic $ 4Ba� 11191aa : . 111 1 DIN H� 5ex.x2 i i O � ,p 3a � ggS �p�m� � 'f`./+ $ $ii' Sa4S�F3t?g£ al�9 1 Will ! 'so A hi i R 4 i PPiI i FOOT.PLAT w' km�eoom,o H PIP-� O�OLSSON A -- 1 f STERLING RIDGE _..._.___ ASSOCIATES N !" ula'E OMANANENNASKA I2a1) - REVISIONS .........---.—_.... 'u'.:`.rsn ..v":,:m ceived 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 Slates,and any United States territories and possessions.However,the tern"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. http://www.whitehouse.gov/omb/circulars_a122_2004/ 8/17/2011 of a cost grouping directly to the function benefited,the allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an-engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. • • http://www.whitehouse.gov/omb/circulars a122_2004/ 8/17/2011 1.10 "City General Funds Grant" shall mean—a grant in the amount of$3,000.00 per house for a total of $15,000.00 for reimbursement to HFHO for actual construction costs for five (5) houses constructed on scattered sites located within Census Tract 53 after the properties meet NDED Construction Standards and are sold to eligible homebuyer during the affordability period described herein, payable from General Fund HOME Match Fund No. 11111, Organization No. 109023, subject to the terms, conditions and requirements of said Agreement. 1.11 "Construction Financing" shall mean, but is not limited to — billings for construction, closing costs, contractor's profit and overhead, developer's fee/overhead, predevelopment and public improvement costs, financing, legal, accounting, architectural or construction supervision costs, costs for materials, labor, utility hookups and site preparation associated with the construction of the Project. 1.11.01 Contractors' or its subcontractors' profit and overhead shall not exceed 15% of hard construction cost. 1.12 "Construction Completion" shall mean — the date the Project has been certified by the City as complying with all appropriate state, federal and local laws, ordinances, regulations and codes, including but not limited to, Section 8 Housing Quality Standards for Existing Homes (HQS) as established by HUD, the City of Omaha Property Rehabilitation Standards (PRS), accessibility requirements, where applicable, and the NDED Rehabilitation/Construction Standards. 1.13 Project Completion" shall mean — the date leveraged funds have been received by the Developer and allocated to the Project, Construction Completion has been certified and approved by the City, all City General Funds and NSP3 funds have been disbursed, and all units have been sold to low income families. 1.14 Project Close Out" shall mean — the point at which all project City and NSP3 funds have been disbursed and the City has completed HUD close out procedures (24 C.F.R. 92.507 and OMB Circular A-110 Subpart A(g)) (Exhibit "E"). The distinction between Project Close Out and Project Completion is that occupancy requirements are sufficient to satisfy Project Completion. 1.15 "Affordability Period" (24 C.F.R. 92.252(e)) shall mean — that time period, fifteen (15) years after project close out in which Developer shall keep all assisted units affordable. For this Agreement, the Affordability Period shall commence at loan closing with the homebuyer and shall continue for fifteen (15) years. 1.16 Property" or "Project" shall mean — those five (5) houses to be constructed on scattered sites to be determined at a later date that will be located in Census Tract 53. 4 Cedar Construction $250.00 EACH $2,500.00 MFT Construction $200.00 EACH _ $2,000.00 L. G. Roloff Construction Company,Inc. $96.16 EACH $961.60 Vincentini Plumbing $250.00 EACH $2,500.00 • Page 8 of 9, 7/15/2011 8:11:36 AM, Bid Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD 8:11:36 AM, Bid Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD The Special Sewer Connection fee shall be collected by the 6 • nts. Prior to final signature by the City of this Agreement, Subdivider will provide City with an irrevocable letter of credit issued by a reputable financial institution in an amount no less than Subdivider's required contribution. City and Subdivider may agree to other financial assurance in their sole discretion. In the event that Subdivider fails to maintain such financial assurance or defaults in its obligation to make the financial contribution, City shall have the right to suspend processing and approval of building permits for the Area to be Developed until such default is cured. 4 lled until such time as they will not be negatively 2 ipril' g tQQ 1 q 1 a l [z 4x m5-x P ag4ghO#0§ ggie gE } 3i ,?m Y +;i riri yr; liiea _444 .- :4 - I z o p ,�C R ,B8 '6 Bf A, REE Qg ` F I� 9 i 7 A" i i' �1 1 - d h SI Or R fRf Rdag§'d .,X�� "45g iirp Ro n , W EFpp eE hid; _ $�.�_Z. °�- m p'g.b tSy�itJ daR F L �:. R '' FSic $ 4Ba� 11191aa : . 111 1 DIN H� 5ex.x2 i i O � ,p 3a � ggS �p�m� � 'f`./+ $ $ii' Sa4S�F3t?g£ al�9 1 Will ! 'so A hi i R 4 i PPiI i FOOT.PLAT w' km�eoom,o H PIP-� O�OLSSON A -- 1 f STERLING RIDGE _..._.___ ASSOCIATES N !" ula'E OMANANENNASKA I2a1) - REVISIONS .........---.—_.... 'u'.:`.rsn ..v":,:m ceived 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 Slates,and any United States territories and possessions.However,the tern"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. http://www.whitehouse.gov/omb/circulars_a122_2004/ 8/17/2011 of a cost grouping directly to the function benefited,the allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an-engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. • • http://www.whitehouse.gov/omb/circulars a122_2004/ 8/17/2011 1.17 "Low Income Households" for this Agreement shall mean — a household with an annual income that does not exceed 50% percent of Median.Family Income (MFI) for the Omaha NE-IA Metropolitan Statistical Area as determined annually by HUD (Exhibit"C"). 1.18 "Recapture Provisions" is not applicable to this Agreement as the City General funds and NSP3 funds are provided as a grant directly to HFHO as reimbursement for actual construction costs. 1.19 "Maximum Initial Sales Price" shall mean — the maximum HOME purchase price limit derived from single-family mortgage limits under Section 203(b) of the National Housing Act in effect at the time of loan closing with the homebuyer. Attached as Exhibit "K" are the current HOME Maximum Homebuyer Mortgage Limits. As of January 1, 2011, the maximum Mortgage Limit is $200,160.00 (92.254(a)( 2)(iii)). 1.20 "Loan Underwriting Cost Payment" — shall mean a loan underwriting cost charged by Omaha 100, Inc., and approved by the City for all homebuyers purchasing a home funded through the NSP3. This cost shall be a grant and must be included in the overall project construction budget as a project soft cost. 1.21 "Counseling Agency"—shall mean any HUD-certified counseling agency. 1.22 "Program Income" shall mean — the gross income received by the Recipient or Subrecipient directly generated from the use of City General Funds and NSP3 Funds (24 C.F.R. 92.503). When such income is generated by an activity that is only partially assisted with City General Funds and NSP3 Funds, the income shall be prorated to reflect the percentage of NSP3 Funds used (see Exhibit "D", attached hereto and incorporated herein by this reference as though fully set forth). Any program income generated by City General Funds and NSP3 funds through March 31, 2013 shall be used to construct housing units in Census Tract 53 affordable to LMMI persons. After March 31, 2013, all program income generated by NSP3 funds will be limited to eligible CDBG activities, including the benefit to LMI (not LMMI) households during the term of this Agreement. Any program income shall be returned to the City within thirty (30) days. SECTION 2. RESPONSIBILITIES OF THE DEVELOPER. 2.01 Overall Project Performance 2.01.1 The Developer shall use the $47,000.00 in NSP3 Funds and the $3,000.00 in City General Funds for partial financing for actual construction costs per house for a total of $250,000.00 for the construction of five (5) single-family houses to be located within Census Tract 53 and sold to qualified low income households with annual household incomes at or below 50% of the Median Family Income (MFI) (Exhibit"C"). 5 at will be located in Census Tract 53. 4 Cedar Construction $250.00 EACH $2,500.00 MFT Construction $200.00 EACH _ $2,000.00 L. G. Roloff Construction Company,Inc. $96.16 EACH $961.60 Vincentini Plumbing $250.00 EACH $2,500.00 • Page 8 of 9, 7/15/2011 8:11:36 AM, Bid Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD 8:11:36 AM, Bid Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD The Special Sewer Connection fee shall be collected by the 6 • nts. Prior to final signature by the City of this Agreement, Subdivider will provide City with an irrevocable letter of credit issued by a reputable financial institution in an amount no less than Subdivider's required contribution. City and Subdivider may agree to other financial assurance in their sole discretion. In the event that Subdivider fails to maintain such financial assurance or defaults in its obligation to make the financial contribution, City shall have the right to suspend processing and approval of building permits for the Area to be Developed until such default is cured. 4 lled until such time as they will not be negatively 2 ipril' g tQQ 1 q 1 a l [z 4x m5-x P ag4ghO#0§ ggie gE } 3i ,?m Y +;i riri yr; liiea _444 .- :4 - I z o p ,�C R ,B8 '6 Bf A, REE Qg ` F I� 9 i 7 A" i i' �1 1 - d h SI Or R fRf Rdag§'d .,X�� "45g iirp Ro n , W EFpp eE hid; _ $�.�_Z. °�- m p'g.b tSy�itJ daR F L �:. R '' FSic $ 4Ba� 11191aa : . 111 1 DIN H� 5ex.x2 i i O � ,p 3a � ggS �p�m� � 'f`./+ $ $ii' Sa4S�F3t?g£ al�9 1 Will ! 'so A hi i R 4 i PPiI i FOOT.PLAT w' km�eoom,o H PIP-� O�OLSSON A -- 1 f STERLING RIDGE _..._.___ ASSOCIATES N !" ula'E OMANANENNASKA I2a1) - REVISIONS .........---.—_.... 'u'.:`.rsn ..v":,:m ceived 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 Slates,and any United States territories and possessions.However,the tern"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. http://www.whitehouse.gov/omb/circulars_a122_2004/ 8/17/2011 of a cost grouping directly to the function benefited,the allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an-engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. • • http://www.whitehouse.gov/omb/circulars a122_2004/ 8/17/2011 2.01.2 Total Total Total LMI Project Units Assisted Units Unit 5 5 5 2.01.3 Number of Maximum Percent of Area LMI Households Median Income Permitted 5 50% 2.01.4 Construction Completion Date November 30,2012 2.02 Project Budget 2.02.1 The Developer asserts that the funding sources and amounts listed below are committed as of this date or will be committed to the Project by October 31, 2011. NSP3 Funds,to HFHO $235,000.00 NSP3 Funds, to City of Omaha $25,000.00 City General Funds $15,000.00 Other Funding From Developer and Volunteers $ 375,000.00 Estimated Project Cost $650,000.00 2.03 Term of the Agreement 2.03.1 This Agreement shall be in full force and effect and shall end on November 30, 2027. Project completion as well as services of the Developer will start effective the date of the proceed order issued by the City and Levels of Project Performance stated in Section 2.01 shall be completed as of November 30, 2012. This date may be extended by the Planning Director. In the event the Project Completion would be accelerated, the Term of the Agreement and Affordability Period shall be moved correspondingly. SECTION 3. CONDITIONS FOR RECEIPT OF CITY FINANCING. 3.01 Conveyance of Land. Subject to and conditioned upon actual receipt of same, the City agrees to convey by Warranty Deed to the Developer platted vacant lots as described in Section 1.15 herein sufficient in number and size to enable the construction of five (5) single-family houses for the sum of One Dollar ($1.00) and other valuable considerations. The Developer shall convey to the City any unused lots and/or parcels of land which have not been utilized, through the performance of this Agreement, upon the date the parties reach mutual decision to terminate this Agreement and before full development of the Project or upon the expiration date of this Agreement as described in section 2.03, whichever date first occurs. 6 l be returned to the City within thirty (30) days. SECTION 2. RESPONSIBILITIES OF THE DEVELOPER. 2.01 Overall Project Performance 2.01.1 The Developer shall use the $47,000.00 in NSP3 Funds and the $3,000.00 in City General Funds for partial financing for actual construction costs per house for a total of $250,000.00 for the construction of five (5) single-family houses to be located within Census Tract 53 and sold to qualified low income households with annual household incomes at or below 50% of the Median Family Income (MFI) (Exhibit"C"). 5 at will be located in Census Tract 53. 4 Cedar Construction $250.00 EACH $2,500.00 MFT Construction $200.00 EACH _ $2,000.00 L. G. Roloff Construction Company,Inc. $96.16 EACH $961.60 Vincentini Plumbing $250.00 EACH $2,500.00 • Page 8 of 9, 7/15/2011 8:11:36 AM, Bid Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD 8:11:36 AM, Bid Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD The Special Sewer Connection fee shall be collected by the 6 • nts. Prior to final signature by the City of this Agreement, Subdivider will provide City with an irrevocable letter of credit issued by a reputable financial institution in an amount no less than Subdivider's required contribution. City and Subdivider may agree to other financial assurance in their sole discretion. In the event that Subdivider fails to maintain such financial assurance or defaults in its obligation to make the financial contribution, City shall have the right to suspend processing and approval of building permits for the Area to be Developed until such default is cured. 4 lled until such time as they will not be negatively 2 ipril' g tQQ 1 q 1 a l [z 4x m5-x P ag4ghO#0§ ggie gE } 3i ,?m Y +;i riri yr; liiea _444 .- :4 - I z o p ,�C R ,B8 '6 Bf A, REE Qg ` F I� 9 i 7 A" i i' �1 1 - d h SI Or R fRf Rdag§'d .,X�� "45g iirp Ro n , W EFpp eE hid; _ $�.�_Z. °�- m p'g.b tSy�itJ daR F L �:. R '' FSic $ 4Ba� 11191aa : . 111 1 DIN H� 5ex.x2 i i O � ,p 3a � ggS �p�m� � 'f`./+ $ $ii' Sa4S�F3t?g£ al�9 1 Will ! 'so A hi i R 4 i PPiI i FOOT.PLAT w' km�eoom,o H PIP-� O�OLSSON A -- 1 f STERLING RIDGE _..._.___ ASSOCIATES N !" ula'E OMANANENNASKA I2a1) - REVISIONS .........---.—_.... 'u'.:`.rsn ..v":,:m ceived 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 Slates,and any United States territories and possessions.However,the tern"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. http://www.whitehouse.gov/omb/circulars_a122_2004/ 8/17/2011 of a cost grouping directly to the function benefited,the allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an-engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. • • http://www.whitehouse.gov/omb/circulars a122_2004/ 8/17/2011 3.02 Documents 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 Developer has submitted for and received the prior approval of the Director of all the documents listed below. 3.02.1 Property Insurance. Developer should procure and maintain, at a minimum, fire and extended coverage insurance in an amount sufficient to protect their interest in the Property during the Term of the Agreement(OMB Circular A-110) (Exhibit"E"). 3.02.2 Contracts. The Developer shall submit duly executed contracts for all Construction Work to the Director for approval prior to the start of construction. 3.02.3 Davis Bacon Exception Checklist—See Exhibit"H". 3.02.4 Contractors' Insurance and Workers' Compensation. The Developer or its contractors and subcontractors shall maintain Certificates of Insurance. The insurance coverage shall include pollutant liability for lead reduction work, if applicable, Workers' Compensation, and, at a minimum,the following amount of coverage: Contractor's Personal Liability $1,000,000.00 Combined Bodily Injury and Property Damage ($1,000,000.00 each occurrence) $2,000,000.00 Product, Including Completed Operations $1,000,000.00 3.02.5 Plan Submissions. Developer shall submit all plans, working drawings and/or specifications necessary or incidental to this Project to the Director for review and approval prior to issuance of the • notice to proceed with construction. 3.02.6 Affirmative Marketing Plan. A copy of the Developer's and its subcontractor's affirmative action plan shall be submitted to the City for review and approval prior to issuance of the Notice to Proceed with construction. 3.02.7 Minority/Women Owned Business Enterprise Plan. Developer shall submit to the Director for his review and approval a minority and women business participation plan which discusses economic development and employment opportunities. These plans shall ensure that the Developer and its subcontractors will make their best efforts to ensure that construction services, contracts and employment opportunities are affirmatively marketed to women and 7 l Funds for partial financing for actual construction costs per house for a total of $250,000.00 for the construction of five (5) single-family houses to be located within Census Tract 53 and sold to qualified low income households with annual household incomes at or below 50% of the Median Family Income (MFI) (Exhibit"C"). 5 at will be located in Census Tract 53. 4 Cedar Construction $250.00 EACH $2,500.00 MFT Construction $200.00 EACH _ $2,000.00 L. G. Roloff Construction Company,Inc. $96.16 EACH $961.60 Vincentini Plumbing $250.00 EACH $2,500.00 • Page 8 of 9, 7/15/2011 8:11:36 AM, Bid Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD 8:11:36 AM, Bid Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD The Special Sewer Connection fee shall be collected by the 6 • nts. Prior to final signature by the City of this Agreement, Subdivider will provide City with an irrevocable letter of credit issued by a reputable financial institution in an amount no less than Subdivider's required contribution. City and Subdivider may agree to other financial assurance in their sole discretion. In the event that Subdivider fails to maintain such financial assurance or defaults in its obligation to make the financial contribution, City shall have the right to suspend processing and approval of building permits for the Area to be Developed until such default is cured. 4 lled until such time as they will not be negatively 2 ipril' g tQQ 1 q 1 a l [z 4x m5-x P ag4ghO#0§ ggie gE } 3i ,?m Y +;i riri yr; liiea _444 .- :4 - I z o p ,�C R ,B8 '6 Bf A, REE Qg ` F I� 9 i 7 A" i i' �1 1 - d h SI Or R fRf Rdag§'d .,X�� "45g iirp Ro n , W EFpp eE hid; _ $�.�_Z. °�- m p'g.b tSy�itJ daR F L �:. R '' FSic $ 4Ba� 11191aa : . 111 1 DIN H� 5ex.x2 i i O � ,p 3a � ggS �p�m� � 'f`./+ $ $ii' Sa4S�F3t?g£ al�9 1 Will ! 'so A hi i R 4 i PPiI i FOOT.PLAT w' km�eoom,o H PIP-� O�OLSSON A -- 1 f STERLING RIDGE _..._.___ ASSOCIATES N !" ula'E OMANANENNASKA I2a1) - REVISIONS .........---.—_.... 'u'.:`.rsn ..v":,:m ceived 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 Slates,and any United States territories and possessions.However,the tern"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. http://www.whitehouse.gov/omb/circulars_a122_2004/ 8/17/2011 of a cost grouping directly to the function benefited,the allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an-engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. • • http://www.whitehouse.gov/omb/circulars a122_2004/ 8/17/2011 members of minority groups, and shall be submitted prior to issuance of the Notice to Proceed with construction. 3.02.8 Eligible Contractors. Developer 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 disbarred or disqualified by HUD (24 C.F.R. Part 5). The Director shall approve all contractors and subcontractors prior to being hired by the Developer. 3.02.9 Funding Compliance Deadline. In the event that all conditions of funding are not met on or before October 31, 2011, then this Agreement shall automatically become null and void and the City shall not be deemed to have assumed any obligation or liability hereunder. Upon the sole discretion of the Director, this date may be extended. 3.02.10 Section 504 Exemption Checklist—Refer to Exhibit"F". 3.02.11 Security For Grant to HFHO. Developer shall execute for the benefit of the City an Acknowledgement of Covenant Running With Land in an amount not to exceed $50,000.00 per five (5) houses for a total of$250,000.00. The covenant shall require that the property be maintained as the initial and subsequent homebuyer's principal place of residency throughout the Fifteen (15) year Affordability Period beginning with the date of purchase by the initial homebuyer for properties located within Census Tract 53. The initial and subsequent homebuyers must occupy the property as their principal place of residency and their annual gross household incomes shall be 50% or below the MFI when the homebuyer purchases the Property. A copy of an Acknowledgement of Covenant Running With Land in substantial form is attached hereto as Exhibit "B" and incorporated herein by this reference as thought fully set forth. SECTION 4. PROJECT RESPONSIBILITIES OF THE DEVELOPER 4.01 Eligible Use of Funds. The Developer 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. 4.02 Terms and Conditions. The Developer shall abide by all terms and conditions of this Agreement and shall be responsible for the security and maintenance of the sites described in Section 1.16 herein. 4.03 Breach of Agreement. If through breach of this Agreement the Developer fails to maintain the occupancy, affordability and use restrictions as described herein, all NSP3 funds previously provided to the Developer through fulfillment of this Agreement shall promptly be returned to the City. 8 Income (MFI) (Exhibit"C"). 5 at will be located in Census Tract 53. 4 Cedar Construction $250.00 EACH $2,500.00 MFT Construction $200.00 EACH _ $2,000.00 L. G. Roloff Construction Company,Inc. $96.16 EACH $961.60 Vincentini Plumbing $250.00 EACH $2,500.00 • Page 8 of 9, 7/15/2011 8:11:36 AM, Bid Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD 8:11:36 AM, Bid Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD The Special Sewer Connection fee shall be collected by the 6 • nts. Prior to final signature by the City of this Agreement, Subdivider will provide City with an irrevocable letter of credit issued by a reputable financial institution in an amount no less than Subdivider's required contribution. City and Subdivider may agree to other financial assurance in their sole discretion. In the event that Subdivider fails to maintain such financial assurance or defaults in its obligation to make the financial contribution, City shall have the right to suspend processing and approval of building permits for the Area to be Developed until such default is cured. 4 lled until such time as they will not be negatively 2 ipril' g tQQ 1 q 1 a l [z 4x m5-x P ag4ghO#0§ ggie gE } 3i ,?m Y +;i riri yr; liiea _444 .- :4 - I z o p ,�C R ,B8 '6 Bf A, REE Qg ` F I� 9 i 7 A" i i' �1 1 - d h SI Or R fRf Rdag§'d .,X�� "45g iirp Ro n , W EFpp eE hid; _ $�.�_Z. °�- m p'g.b tSy�itJ daR F L �:. R '' FSic $ 4Ba� 11191aa : . 111 1 DIN H� 5ex.x2 i i O � ,p 3a � ggS �p�m� � 'f`./+ $ $ii' Sa4S�F3t?g£ al�9 1 Will ! 'so A hi i R 4 i PPiI i FOOT.PLAT w' km�eoom,o H PIP-� O�OLSSON A -- 1 f STERLING RIDGE _..._.___ ASSOCIATES N !" ula'E OMANANENNASKA I2a1) - REVISIONS .........---.—_.... 'u'.:`.rsn ..v":,:m ceived 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 Slates,and any United States territories and possessions.However,the tern"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. http://www.whitehouse.gov/omb/circulars_a122_2004/ 8/17/2011 of a cost grouping directly to the function benefited,the allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an-engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. • • http://www.whitehouse.gov/omb/circulars a122_2004/ 8/17/2011 4.04 Lien Waivers. Developer agrees to obtain the appropriate lien waivers prior to each construction payment. 4.05 Ineligible Costs. The Developer shall not request disbursement of funds under this Agreement until the funds are needed for payment of eligible costs as described in Section 1.11 herein. 4.05.1 Eligible Costs. The Developer shall be responsible for payment of any Project costs that exceed those specified in this Agreement. 4.05.1.1 Luxury Items. Property amenities shall be those amenities reasonably anticipated in comparable properties. Any items determined by the City as luxury items shall not be considered an eligible cost for construction. 4.06 Lead-Based Paint Prohibition. Developer shall not use lead-based paint in the performance of this Agreement, including the performance of any subcontractor (42 USC 4821 et seq., 24 C.F.R. 92.355 and 24 C.F.R. Part 35). "Lead-based Paint" means any paint containing more than six one-hundredths of one (1) per centum of lead by weight (calculated as lead metal) in the total nonvolatile content of the paint, or the equivalent measure of lead in the dried film of paint already applied. The Developer further agrees to abide by Federal requirements regarding lead-based paint poison prevention. 4.07 Ongoing Property Restrictions. During the construction period of the term of this Agreement and that part of any grant, deed of trust/mortgage, covenant documents, the Developer shall: 4.07.1 maintain the property in a safe and sanitary condition at all times. 4.07.2 ensure that all real estate taxes and special assessments are paid and kept current. 4.07.3 maintain insurance against loss or damage to the Property in an aggregate amount sufficient to protect the City's interest in the Property. 4.08 Davis-Bacon Exemption Checklist—Refer to Exhibit"H". 4.09 Property Standards (24 C.F.R. 92.251). During the construction period, the Developer shall ensure that all work performed and the Construction Work meets all state, federal and local laws, ordinances, regulations and codes, including but not limited to, Section 8 Housing Quality Standards for Existing Homes (HQS) as established by HUD, the City of Omaha Rehabilitation Standards, and accessibility requirements, where applicable, and NDED Rehabilitation/Construction Standards. 9 to maintain the occupancy, affordability and use restrictions as described herein, all NSP3 funds previously provided to the Developer through fulfillment of this Agreement shall promptly be returned to the City. 8 Income (MFI) (Exhibit"C"). 5 at will be located in Census Tract 53. 4 Cedar Construction $250.00 EACH $2,500.00 MFT Construction $200.00 EACH _ $2,000.00 L. G. Roloff Construction Company,Inc. $96.16 EACH $961.60 Vincentini Plumbing $250.00 EACH $2,500.00 • Page 8 of 9, 7/15/2011 8:11:36 AM, Bid Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD 8:11:36 AM, Bid Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD The Special Sewer Connection fee shall be collected by the 6 • nts. Prior to final signature by the City of this Agreement, Subdivider will provide City with an irrevocable letter of credit issued by a reputable financial institution in an amount no less than Subdivider's required contribution. City and Subdivider may agree to other financial assurance in their sole discretion. In the event that Subdivider fails to maintain such financial assurance or defaults in its obligation to make the financial contribution, City shall have the right to suspend processing and approval of building permits for the Area to be Developed until such default is cured. 4 lled until such time as they will not be negatively 2 ipril' g tQQ 1 q 1 a l [z 4x m5-x P ag4ghO#0§ ggie gE } 3i ,?m Y +;i riri yr; liiea _444 .- :4 - I z o p ,�C R ,B8 '6 Bf A, REE Qg ` F I� 9 i 7 A" i i' �1 1 - d h SI Or R fRf Rdag§'d .,X�� "45g iirp Ro n , W EFpp eE hid; _ $�.�_Z. °�- m p'g.b tSy�itJ daR F L �:. R '' FSic $ 4Ba� 11191aa : . 111 1 DIN H� 5ex.x2 i i O � ,p 3a � ggS �p�m� � 'f`./+ $ $ii' Sa4S�F3t?g£ al�9 1 Will ! 'so A hi i R 4 i PPiI i FOOT.PLAT w' km�eoom,o H PIP-� O�OLSSON A -- 1 f STERLING RIDGE _..._.___ ASSOCIATES N !" ula'E OMANANENNASKA I2a1) - REVISIONS .........---.—_.... 'u'.:`.rsn ..v":,:m ceived 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 Slates,and any United States territories and possessions.However,the tern"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. http://www.whitehouse.gov/omb/circulars_a122_2004/ 8/17/2011 of a cost grouping directly to the function benefited,the allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an-engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. • • http://www.whitehouse.gov/omb/circulars a122_2004/ 8/17/2011 4.09.1 After completion of Construction Work and throughout the Affordability Period, the Property must comply with all appropriate City codes and ordinances, Federal Section 8 Housing Quality Standards and with fire safety codes (24 C.F.R. 570.02), City of Omaha Property Rehabilitation Standards and accessibility requirements, if applicable, and NDED Rehabilitation/Construction Standards. 4.09.2 Inspections. The City may perform periodic inspections at any reasonable time to ensure compliance with this Agreement. The City shall perform final inspection to certify Project completion prior to final disbursement of NSP3 Program proceeds. 4.10 Affirmative Marketing Policy (24 C.F.R. 92.351). The Developer agrees to comply with the City's Affirmative Marketing Policy, attached hereto as Exhibit "I" and incorporated herein by this reference as though fully set forth. These affirmative marketing procedures must be employed in the advertising and marketing of this Project for the Affordability Period. In marketing, the Developer shall also conform to the nondiscrimination provisions hereinafter set forth in Section 5.06.1.2. 4.11 Maintenance of Property. The Developer shall maintain the Property in a safe and sanitary condition to the extent possible during the construction phase of the Project. 4.12 Preconstruction Meeting. The Developer and its subcontractors shall attend a preconstruction meeting with the NDED and the City Construction Specialist prior to the start of any Construction Work. 4.13 National Environmental Policy Act of 1969. The Developer shall not begin any rehabilitation or construction of a Property until it receives approval by the City that all provisions of the National Environmental Policy Act of 1969 (NEPA) and related authorities listed in HUD's implementing regulations at 24 C.F.R. Parts 50 and 58 have been met regarding the Property. SECTION 5. GENERAL ADMINISTRATIVE REQUIREMENTS OF DEVELOPER. 5.01 Financial Management. 5.01.1 Accounting Standards. The Developer 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 "E", attached hereto and incorporated herein as though fully set forth). 10 9 to maintain the occupancy, affordability and use restrictions as described herein, all NSP3 funds previously provided to the Developer through fulfillment of this Agreement shall promptly be returned to the City. 8 Income (MFI) (Exhibit"C"). 5 at will be located in Census Tract 53. 4 Cedar Construction $250.00 EACH $2,500.00 MFT Construction $200.00 EACH _ $2,000.00 L. G. Roloff Construction Company,Inc. $96.16 EACH $961.60 Vincentini Plumbing $250.00 EACH $2,500.00 • Page 8 of 9, 7/15/2011 8:11:36 AM, Bid Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD 8:11:36 AM, Bid Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD The Special Sewer Connection fee shall be collected by the 6 • nts. Prior to final signature by the City of this Agreement, Subdivider will provide City with an irrevocable letter of credit issued by a reputable financial institution in an amount no less than Subdivider's required contribution. City and Subdivider may agree to other financial assurance in their sole discretion. In the event that Subdivider fails to maintain such financial assurance or defaults in its obligation to make the financial contribution, City shall have the right to suspend processing and approval of building permits for the Area to be Developed until such default is cured. 4 lled until such time as they will not be negatively 2 ipril' g tQQ 1 q 1 a l [z 4x m5-x P ag4ghO#0§ ggie gE } 3i ,?m Y +;i riri yr; liiea _444 .- :4 - I z o p ,�C R ,B8 '6 Bf A, REE Qg ` F I� 9 i 7 A" i i' �1 1 - d h SI Or R fRf Rdag§'d .,X�� "45g iirp Ro n , W EFpp eE hid; _ $�.�_Z. °�- m p'g.b tSy�itJ daR F L �:. R '' FSic $ 4Ba� 11191aa : . 111 1 DIN H� 5ex.x2 i i O � ,p 3a � ggS �p�m� � 'f`./+ $ $ii' Sa4S�F3t?g£ al�9 1 Will ! 'so A hi i R 4 i PPiI i FOOT.PLAT w' km�eoom,o H PIP-� O�OLSSON A -- 1 f STERLING RIDGE _..._.___ ASSOCIATES N !" ula'E OMANANENNASKA I2a1) - REVISIONS .........---.—_.... 'u'.:`.rsn ..v":,:m ceived 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 Slates,and any United States territories and possessions.However,the tern"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. http://www.whitehouse.gov/omb/circulars_a122_2004/ 8/17/2011 of a cost grouping directly to the function benefited,the allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an-engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. • • http://www.whitehouse.gov/omb/circulars a122_2004/ 8/17/2011 5.01.2 Cost Principles. The Developer shall comply with the requirements and the standards of OMB Circular No. A-122, "Cost Principles for Non-profit Organizations" (Exhibit "G"), and with the requirements of OMB Circular A-110 (Exhibit "E"). Both Exhibits are attached hereto and incorporated herein as though fully set forth. 5.01.3 Audits. The Developer shall comply with all provisions and regulations of the NSP3 Program and have an annual audit completed in compliance with OMB Circular A-133, attached hereto as Exhibit "J", and incorporated herein as though fully set forth. A copy of the audit shall be provided to the Director. The auditor shall determine the appropriate type of audit to be conducted; i.e., limited scope or full compliance. A single audit is not an allowable expense unless the Subrecipient expends total federal funds over $500,000.00 in each fiscal year. A limited-scope audit may be allowable provided the auditor conducts the audit in accordance with generally accepted auditing standards and the recipient expends less than$500,000.00 in each fiscal year. 5.01.3.1 Any deficiencies noted in audit reports must be fully cleared by the Developer within 30 days after receipt of audit by the Developer. Failure of the Developer 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 (24 C.F.R. 92.508). All Developer 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 Developer with any contractor or subcontractors shall include this Section to ensure said access. 5.03 Monthly Reports. The Developer shall submit to the City the following monthly reports in accordance with the NSP3 Contract and 24 C.F.R. 92.505 with submission timelines as specified below. 5.03.1 Construction Progress Report. The Developer shall provide monthly construction progress reports describing the progress of construction and any significant problems and/or delays in construction on this Project to the Construction Specialist assigned to the Project. The reports shall be in a format acceptable to the City. 11 d to the City. 8 Income (MFI) (Exhibit"C"). 5 at will be located in Census Tract 53. 4 Cedar Construction $250.00 EACH $2,500.00 MFT Construction $200.00 EACH _ $2,000.00 L. G. Roloff Construction Company,Inc. $96.16 EACH $961.60 Vincentini Plumbing $250.00 EACH $2,500.00 • Page 8 of 9, 7/15/2011 8:11:36 AM, Bid Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD 8:11:36 AM, Bid Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD The Special Sewer Connection fee shall be collected by the 6 • nts. Prior to final signature by the City of this Agreement, Subdivider will provide City with an irrevocable letter of credit issued by a reputable financial institution in an amount no less than Subdivider's required contribution. City and Subdivider may agree to other financial assurance in their sole discretion. In the event that Subdivider fails to maintain such financial assurance or defaults in its obligation to make the financial contribution, City shall have the right to suspend processing and approval of building permits for the Area to be Developed until such default is cured. 4 lled until such time as they will not be negatively 2 ipril' g tQQ 1 q 1 a l [z 4x m5-x P ag4ghO#0§ ggie gE } 3i ,?m Y +;i riri yr; liiea _444 .- :4 - I z o p ,�C R ,B8 '6 Bf A, REE Qg ` F I� 9 i 7 A" i i' �1 1 - d h SI Or R fRf Rdag§'d .,X�� "45g iirp Ro n , W EFpp eE hid; _ $�.�_Z. °�- m p'g.b tSy�itJ daR F L �:. R '' FSic $ 4Ba� 11191aa : . 111 1 DIN H� 5ex.x2 i i O � ,p 3a � ggS �p�m� � 'f`./+ $ $ii' Sa4S�F3t?g£ al�9 1 Will ! 'so A hi i R 4 i PPiI i FOOT.PLAT w' km�eoom,o H PIP-� O�OLSSON A -- 1 f STERLING RIDGE _..._.___ ASSOCIATES N !" ula'E OMANANENNASKA I2a1) - REVISIONS .........---.—_.... 'u'.:`.rsn ..v":,:m ceived 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 Slates,and any United States territories and possessions.However,the tern"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. http://www.whitehouse.gov/omb/circulars_a122_2004/ 8/17/2011 of a cost grouping directly to the function benefited,the allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an-engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. • • http://www.whitehouse.gov/omb/circulars a122_2004/ 8/17/2011 5.03.2 Housing Activities Report. The Developer shall provide a monthly housing activities report to the NSP3 Housing Coordinator assigned to the Project describing, among other things, the: 5.03.2.1 number of applicants that have submitted applications; 5.03.2.2 number of applications processed; 5.03.2.3 Number of applications rejected, and reasons for the rejection. 5.03.2.4 number of applicants that received notification of eligibility to purchase; 5.03.2.4 number of inspections completed on a house; and, 5.03.2.5 number of applicants that received approval for assistance. 5.03.3 Occupancy Report. Prior to sale, the Developer shall provide to the Director the following documents: 5.03.3.1 name(s) of homebuyer 5.03.3.2 address of property 5.03.3.3 U. S. Attestation of Citizenship for Public Benefit (Exhibit 0) 5.03.3.4 household income as a percent of Median Family Income (MFI) as determined by HUD, income verification forms used in determining MFI including the City's Computing Annual Income Form (Exhibit"C") 5.03.3.5 household size 5.03.3.6 gender of head of household member 5.03.3.7 name and age of each household member 5.03.3.8 race/ethnicity of head of household 5.03.3.9 disability status of any household member 5.03.3.10 copy of purchase agreement and appraisal 5.03.3.11 evidence of affirmative marketing efforts 12 111 rein in Section 9. 5.02 Documentation and Record-Keeping (24 C.F.R. 92.508). All Developer 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 Developer with any contractor or subcontractors shall include this Section to ensure said access. 5.03 Monthly Reports. The Developer shall submit to the City the following monthly reports in accordance with the NSP3 Contract and 24 C.F.R. 92.505 with submission timelines as specified below. 5.03.1 Construction Progress Report. The Developer shall provide monthly construction progress reports describing the progress of construction and any significant problems and/or delays in construction on this Project to the Construction Specialist assigned to the Project. The reports shall be in a format acceptable to the City. 11 d to the City. 8 Income (MFI) (Exhibit"C"). 5 at will be located in Census Tract 53. 4 Cedar Construction $250.00 EACH $2,500.00 MFT Construction $200.00 EACH _ $2,000.00 L. G. Roloff Construction Company,Inc. $96.16 EACH $961.60 Vincentini Plumbing $250.00 EACH $2,500.00 • Page 8 of 9, 7/15/2011 8:11:36 AM, Bid Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD 8:11:36 AM, Bid Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD The Special Sewer Connection fee shall be collected by the 6 • nts. Prior to final signature by the City of this Agreement, Subdivider will provide City with an irrevocable letter of credit issued by a reputable financial institution in an amount no less than Subdivider's required contribution. City and Subdivider may agree to other financial assurance in their sole discretion. In the event that Subdivider fails to maintain such financial assurance or defaults in its obligation to make the financial contribution, City shall have the right to suspend processing and approval of building permits for the Area to be Developed until such default is cured. 4 lled until such time as they will not be negatively 2 ipril' g tQQ 1 q 1 a l [z 4x m5-x P ag4ghO#0§ ggie gE } 3i ,?m Y +;i riri yr; liiea _444 .- :4 - I z o p ,�C R ,B8 '6 Bf A, REE Qg ` F I� 9 i 7 A" i i' �1 1 - d h SI Or R fRf Rdag§'d .,X�� "45g iirp Ro n , W EFpp eE hid; _ $�.�_Z. °�- m p'g.b tSy�itJ daR F L �:. R '' FSic $ 4Ba� 11191aa : . 111 1 DIN H� 5ex.x2 i i O � ,p 3a � ggS �p�m� � 'f`./+ $ $ii' Sa4S�F3t?g£ al�9 1 Will ! 'so A hi i R 4 i PPiI i FOOT.PLAT w' km�eoom,o H PIP-� O�OLSSON A -- 1 f STERLING RIDGE _..._.___ ASSOCIATES N !" ula'E OMANANENNASKA I2a1) - REVISIONS .........---.—_.... 'u'.:`.rsn ..v":,:m ceived 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 Slates,and any United States territories and possessions.However,the tern"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. http://www.whitehouse.gov/omb/circulars_a122_2004/ 8/17/2011 of a cost grouping directly to the function benefited,the allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an-engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. • • http://www.whitehouse.gov/omb/circulars a122_2004/ 8/17/2011 For each household or individual occupying the Property, the Developer shall retain the records for ten (10) years after the required Affordability Period as specified in Section 1.16 of this Agreement. For this Agreement, records shall be retained until December 31, 2037. In the event the Term of the Agreement would be extended, the timeframe for record retention would be extended correspondingly. 5.04 Financial Status Reports. Developer shall submit a final financial status report with the final (OMB Circular A-110) (Exhibit "E") pay request. Attached as Exhibit "L", and incorporated herein by this reference as though fully set forth, is a sample financial status report. 5.05 Record Retention. The Developer, its contractors and 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 Developer, Contractor, or 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 ten (10) years after expiration of the Affordability Period (OMB Circular A-110) (Exhibit"E"). 5.06 Personnel and Participant Conditions 5.06.1 Contract Compliance Clause 5.06.1.1 Section 10-192 of the Omaha Municipal Code, Equal Employment Opportunity Clause. The Developer and its contractor shall not discriminate against any employee or applicant for employment because of race, religion, color, sex, age, 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 Developer and its contractor 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. 13 Project to the Construction Specialist assigned to the Project. The reports shall be in a format acceptable to the City. 11 d to the City. 8 Income (MFI) (Exhibit"C"). 5 at will be located in Census Tract 53. 4 Cedar Construction $250.00 EACH $2,500.00 MFT Construction $200.00 EACH _ $2,000.00 L. G. Roloff Construction Company,Inc. $96.16 EACH $961.60 Vincentini Plumbing $250.00 EACH $2,500.00 • Page 8 of 9, 7/15/2011 8:11:36 AM, Bid Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD 8:11:36 AM, Bid Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD The Special Sewer Connection fee shall be collected by the 6 • nts. Prior to final signature by the City of this Agreement, Subdivider will provide City with an irrevocable letter of credit issued by a reputable financial institution in an amount no less than Subdivider's required contribution. City and Subdivider may agree to other financial assurance in their sole discretion. In the event that Subdivider fails to maintain such financial assurance or defaults in its obligation to make the financial contribution, City shall have the right to suspend processing and approval of building permits for the Area to be Developed until such default is cured. 4 lled until such time as they will not be negatively 2 ipril' g tQQ 1 q 1 a l [z 4x m5-x P ag4ghO#0§ ggie gE } 3i ,?m Y +;i riri yr; liiea _444 .- :4 - I z o p ,�C R ,B8 '6 Bf A, REE Qg ` F I� 9 i 7 A" i i' �1 1 - d h SI Or R fRf Rdag§'d .,X�� "45g iirp Ro n , W EFpp eE hid; _ $�.�_Z. °�- m p'g.b tSy�itJ daR F L �:. R '' FSic $ 4Ba� 11191aa : . 111 1 DIN H� 5ex.x2 i i O � ,p 3a � ggS �p�m� � 'f`./+ $ $ii' Sa4S�F3t?g£ al�9 1 Will ! 'so A hi i R 4 i PPiI i FOOT.PLAT w' km�eoom,o H PIP-� O�OLSSON A -- 1 f STERLING RIDGE _..._.___ ASSOCIATES N !" ula'E OMANANENNASKA I2a1) - REVISIONS .........---.—_.... 'u'.:`.rsn ..v":,:m ceived 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 Slates,and any United States territories and possessions.However,the tern"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. http://www.whitehouse.gov/omb/circulars_a122_2004/ 8/17/2011 of a cost grouping directly to the function benefited,the allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an-engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. • • http://www.whitehouse.gov/omb/circulars a122_2004/ 8/17/2011 5.06.1.2 The Developer and its contractors 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, national origin, familial or handicap status. 5.06.1.3 The Developer and its contractors 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. 5.06.1.4 The Developer and its contractors shall furnish to the Human Rights and Relations Department all federal forms containing the information and reports required by the federal government for federal contracts under federal • rules and regulations, including the information required by sections 10-192 to 10-194, inclusive, of the Omaha Municipal Code and shall permit reasonable access to his records. Records accessible to the Human Rights and Relations Department shall be those which related to Paragraphs 5.06.1.1 through 5.06.1.7 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. 5.06.1.5 The Developer and its contractors shall take such actions with respect to any subcontractor as the City may direct as a means of enforcing the provisions of Paragraphs 5.06.1.1 through 5.06.1.7 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. 14 ns of this nondiscrimination clause. 13 Project to the Construction Specialist assigned to the Project. The reports shall be in a format acceptable to the City. 11 d to the City. 8 Income (MFI) (Exhibit"C"). 5 at will be located in Census Tract 53. 4 Cedar Construction $250.00 EACH $2,500.00 MFT Construction $200.00 EACH _ $2,000.00 L. G. Roloff Construction Company,Inc. $96.16 EACH $961.60 Vincentini Plumbing $250.00 EACH $2,500.00 • Page 8 of 9, 7/15/2011 8:11:36 AM, Bid Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD 8:11:36 AM, Bid Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD The Special Sewer Connection fee shall be collected by the 6 • nts. Prior to final signature by the City of this Agreement, Subdivider will provide City with an irrevocable letter of credit issued by a reputable financial institution in an amount no less than Subdivider's required contribution. City and Subdivider may agree to other financial assurance in their sole discretion. In the event that Subdivider fails to maintain such financial assurance or defaults in its obligation to make the financial contribution, City shall have the right to suspend processing and approval of building permits for the Area to be Developed until such default is cured. 4 lled until such time as they will not be negatively 2 ipril' g tQQ 1 q 1 a l [z 4x m5-x P ag4ghO#0§ ggie gE } 3i ,?m Y +;i riri yr; liiea _444 .- :4 - I z o p ,�C R ,B8 '6 Bf A, REE Qg ` F I� 9 i 7 A" i i' �1 1 - d h SI Or R fRf Rdag§'d .,X�� "45g iirp Ro n , W EFpp eE hid; _ $�.�_Z. °�- m p'g.b tSy�itJ daR F L �:. R '' FSic $ 4Ba� 11191aa : . 111 1 DIN H� 5ex.x2 i i O � ,p 3a � ggS �p�m� � 'f`./+ $ $ii' Sa4S�F3t?g£ al�9 1 Will ! 'so A hi i R 4 i PPiI i FOOT.PLAT w' km�eoom,o H PIP-� O�OLSSON A -- 1 f STERLING RIDGE _..._.___ ASSOCIATES N !" ula'E OMANANENNASKA I2a1) - REVISIONS .........---.—_.... 'u'.:`.rsn ..v":,:m ceived 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 Slates,and any United States territories and possessions.However,the tern"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. http://www.whitehouse.gov/omb/circulars_a122_2004/ 8/17/2011 of a cost grouping directly to the function benefited,the allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an-engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. • • http://www.whitehouse.gov/omb/circulars a122_2004/ 8/17/2011 5.06.1.6 The Developer and its contractors shall file and shall cause his subcontractors, if any, to file compliance reports with the Developer's contractor in the same form and to the extent as required by the federal government for federal contracts under federal rules and regulations. Such compliance reports shall be filed with the City's Human Rights and Relations Department. Compliance reports filed at such times as directed shall contain information as to the employment practices, policies, programs and statistics of the Developer, contractor and his subcontractors. 5.06.1.7 The Developer and its contractors or its subcontractors shall include . the provisions of Paragraphs 5.06.1.1 through 5.06.1.7 of this section, "Equal Employment Opportunity Clause," and Section 10-193. in every contract, subcontract or purchase order so that such provisions will be binding upon each subcontractor or vendor. (Code 1980, Section 10-192; Ord. No. 35344, Sections 1, 9-26-00) 5.06.2 Workers' Compensation. The Developer shall provide Workers' Compensation Insurance coverage for all employees involved in the performance in this Agreement. 5.06.3 Employment Insurance and Bonding. If applicable, the Developer shall purchase a blanket fidelity bond covering all employees, at a minimum, in an amount equal to cash advances from the City. The Developer shall comply with bonding and insurance requirements of OMB Circular A-110 (Exhibit"E"), Bonding and Insurance. 5.06.4 Minority Business/Women Business Enterprise Plan. The Developer shall make its best efforts to ensure that construction services, contracts and employment opportunities are affirmatively marketed to women and members of minority groups. As used in this Agreement, the term "women and members of minority groups" means a business at least fifty-one percent (51%) owned and controlled by minority group members or women. 5.06.5 Section 3 —Employment of Low-Income Persons (Section 3 of HUD Act of 68, as amended, 1 U.S.C. 1701u). The Developer shall make its best efforts to comply with Section 3. The purpose of Section 3 is to ensure that employment and other economic opportunities generated by HUD assistance or HUD-assisted projects covered by Section 3 shall, to the greatest extent feasible, be directed to low- and very low-income persons, particularly persons who are recipients of HUD assistance for housing. 15 le to the City. 11 d to the City. 8 Income (MFI) (Exhibit"C"). 5 at will be located in Census Tract 53. 4 Cedar Construction $250.00 EACH $2,500.00 MFT Construction $200.00 EACH _ $2,000.00 L. G. Roloff Construction Company,Inc. $96.16 EACH $961.60 Vincentini Plumbing $250.00 EACH $2,500.00 • Page 8 of 9, 7/15/2011 8:11:36 AM, Bid Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD 8:11:36 AM, Bid Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD The Special Sewer Connection fee shall be collected by the 6 • nts. Prior to final signature by the City of this Agreement, Subdivider will provide City with an irrevocable letter of credit issued by a reputable financial institution in an amount no less than Subdivider's required contribution. City and Subdivider may agree to other financial assurance in their sole discretion. In the event that Subdivider fails to maintain such financial assurance or defaults in its obligation to make the financial contribution, City shall have the right to suspend processing and approval of building permits for the Area to be Developed until such default is cured. 4 lled until such time as they will not be negatively 2 ipril' g tQQ 1 q 1 a l [z 4x m5-x P ag4ghO#0§ ggie gE } 3i ,?m Y +;i riri yr; liiea _444 .- :4 - I z o p ,�C R ,B8 '6 Bf A, REE Qg ` F I� 9 i 7 A" i i' �1 1 - d h SI Or R fRf Rdag§'d .,X�� "45g iirp Ro n , W EFpp eE hid; _ $�.�_Z. °�- m p'g.b tSy�itJ daR F L �:. R '' FSic $ 4Ba� 11191aa : . 111 1 DIN H� 5ex.x2 i i O � ,p 3a � ggS �p�m� � 'f`./+ $ $ii' Sa4S�F3t?g£ al�9 1 Will ! 'so A hi i R 4 i PPiI i FOOT.PLAT w' km�eoom,o H PIP-� O�OLSSON A -- 1 f STERLING RIDGE _..._.___ ASSOCIATES N !" ula'E OMANANENNASKA I2a1) - REVISIONS .........---.—_.... 'u'.:`.rsn ..v":,:m ceived 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 Slates,and any United States territories and possessions.However,the tern"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. http://www.whitehouse.gov/omb/circulars_a122_2004/ 8/17/2011 of a cost grouping directly to the function benefited,the allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an-engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. • • http://www.whitehouse.gov/omb/circulars a122_2004/ 8/17/2011 5.06.6 Conflict of Interest. The Developer agrees to abide by the provisions of 24 C.F.R. 92.356 with respect to conflicts of interest, and covenants that it presently has financial interest and shall not acquire any financial interest, direct or indirect, which would conflict in any manner or degree with the performance of services required under this Agreement. The Developer further covenants that in the performance of this Agreement no person having such a financial interest shall be employed or retained by the Developer 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 NSP3. 5.06.7.1 Attestation of Citizenship. To comply with Neb. Rev. Stat. 4-108 through 4-114, the Developer/Owner/Subrecipient agrees to comply with the requirements of 5.06.7.1 and 5.06.7.2. The Developer/Owner/Subrecipient 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. 16 e City. 8 Income (MFI) (Exhibit"C"). 5 at will be located in Census Tract 53. 4 Cedar Construction $250.00 EACH $2,500.00 MFT Construction $200.00 EACH _ $2,000.00 L. G. Roloff Construction Company,Inc. $96.16 EACH $961.60 Vincentini Plumbing $250.00 EACH $2,500.00 • Page 8 of 9, 7/15/2011 8:11:36 AM, Bid Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD 8:11:36 AM, Bid Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD The Special Sewer Connection fee shall be collected by the 6 • nts. Prior to final signature by the City of this Agreement, Subdivider will provide City with an irrevocable letter of credit issued by a reputable financial institution in an amount no less than Subdivider's required contribution. City and Subdivider may agree to other financial assurance in their sole discretion. In the event that Subdivider fails to maintain such financial assurance or defaults in its obligation to make the financial contribution, City shall have the right to suspend processing and approval of building permits for the Area to be Developed until such default is cured. 4 lled until such time as they will not be negatively 2 ipril' g tQQ 1 q 1 a l [z 4x m5-x P ag4ghO#0§ ggie gE } 3i ,?m Y +;i riri yr; liiea _444 .- :4 - I z o p ,�C R ,B8 '6 Bf A, REE Qg ` F I� 9 i 7 A" i i' �1 1 - d h SI Or R fRf Rdag§'d .,X�� "45g iirp Ro n , W EFpp eE hid; _ $�.�_Z. °�- m p'g.b tSy�itJ daR F L �:. R '' FSic $ 4Ba� 11191aa : . 111 1 DIN H� 5ex.x2 i i O � ,p 3a � ggS �p�m� � 'f`./+ $ $ii' Sa4S�F3t?g£ al�9 1 Will ! 'so A hi i R 4 i PPiI i FOOT.PLAT w' km�eoom,o H PIP-� O�OLSSON A -- 1 f STERLING RIDGE _..._.___ ASSOCIATES N !" ula'E OMANANENNASKA I2a1) - REVISIONS .........---.—_.... 'u'.:`.rsn ..v":,:m ceived 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 Slates,and any United States territories and possessions.However,the tern"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. http://www.whitehouse.gov/omb/circulars_a122_2004/ 8/17/2011 of a cost grouping directly to the function benefited,the allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an-engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. • • http://www.whitehouse.gov/omb/circulars a122_2004/ 8/17/2011 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." The Developer/Owner/Subrecipient shall have each person/applicant signing the application for a benefit under this agreement execute a United States Citizenship Attestation Form For Public Benefit (Exhibit "0") verifying eligibility status for the purposes of receiving a public benefit. 5.06.7.2 Employee Classification Act. To comply with the Nebraska Employee Classification Act, all general contractors and subcontractors who perform construction or delivery service pursuant to this contract shall submit to the City an Affidavit For Employee Classification Act (Exhibit "P") 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. DEVELOPER'S COMPLIANCE WITH OTHER FEDERAL REGULATIONS 6.01 Environmental Review. The Developer agrees to comply with the following regulations insofar as they apply to the performance of this Agreement 6.01.1 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. 6.01.3 Environmental Protection Agency (EPA) regulations pursuant to 40 C.F.R., Part 50, as amended. 17 the Systematic Alien verification for Entitlements (SAVE) Program. 16 e City. 8 Income (MFI) (Exhibit"C"). 5 at will be located in Census Tract 53. 4 Cedar Construction $250.00 EACH $2,500.00 MFT Construction $200.00 EACH _ $2,000.00 L. G. Roloff Construction Company,Inc. $96.16 EACH $961.60 Vincentini Plumbing $250.00 EACH $2,500.00 • Page 8 of 9, 7/15/2011 8:11:36 AM, Bid Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD 8:11:36 AM, Bid Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD The Special Sewer Connection fee shall be collected by the 6 • nts. Prior to final signature by the City of this Agreement, Subdivider will provide City with an irrevocable letter of credit issued by a reputable financial institution in an amount no less than Subdivider's required contribution. City and Subdivider may agree to other financial assurance in their sole discretion. In the event that Subdivider fails to maintain such financial assurance or defaults in its obligation to make the financial contribution, City shall have the right to suspend processing and approval of building permits for the Area to be Developed until such default is cured. 4 lled until such time as they will not be negatively 2 ipril' g tQQ 1 q 1 a l [z 4x m5-x P ag4ghO#0§ ggie gE } 3i ,?m Y +;i riri yr; liiea _444 .- :4 - I z o p ,�C R ,B8 '6 Bf A, REE Qg ` F I� 9 i 7 A" i i' �1 1 - d h SI Or R fRf Rdag§'d .,X�� "45g iirp Ro n , W EFpp eE hid; _ $�.�_Z. °�- m p'g.b tSy�itJ daR F L �:. R '' FSic $ 4Ba� 11191aa : . 111 1 DIN H� 5ex.x2 i i O � ,p 3a � ggS �p�m� � 'f`./+ $ $ii' Sa4S�F3t?g£ al�9 1 Will ! 'so A hi i R 4 i PPiI i FOOT.PLAT w' km�eoom,o H PIP-� O�OLSSON A -- 1 f STERLING RIDGE _..._.___ ASSOCIATES N !" ula'E OMANANENNASKA I2a1) - REVISIONS .........---.—_.... 'u'.:`.rsn ..v":,:m ceived 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 Slates,and any United States territories and possessions.However,the tern"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. http://www.whitehouse.gov/omb/circulars_a122_2004/ 8/17/2011 of a cost grouping directly to the function benefited,the allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an-engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. • • http://www.whitehouse.gov/omb/circulars a122_2004/ 8/17/2011 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 this 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 45 years old or older or that are included on a Federal, State or local historic property list. 6.02 Uniform Relocation Act. The Developer shall comply with the applicable regulations of the Uniform Relocation Act of 1970, as amended (URA) (42 U.S.C. 4601-4655), or Section 104 (d) of the Housing and Community Development Act of 1974, as amended (Section 104 (d)), which require relocation assistance be provided to resident owners, tenants, businesses and other occupants that are displaced as a result of a federally-assisted project. In the event that the Developer or its agent displaces any tenant-occupant of the property, it shall immediately notify the City in writing of the circumstances surrounding said displacement and comply with 24 C.F.R. 92.353. 6.03 Soil Work Policy. The Developer and its contractors and subcontractors shall comply with the Soil Work Policy, if applicable, see Exhibit "M", which is incorporated herein by this reference as though fully set forth. SECTION 7. RESPONSIBILITIES OF THE CITY. 7.01 Performance Monitoring. The City will monitor the performance standards of the Developer 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 Developer within a reasonable period of time after being notified by the City, contract suspension or termination procedures may be initiated. 18 gulations and guidelines issued thereunder. 6.01.3 Environmental Protection Agency (EPA) regulations pursuant to 40 C.F.R., Part 50, as amended. 17 the Systematic Alien verification for Entitlements (SAVE) Program. 16 e City. 8 Income (MFI) (Exhibit"C"). 5 at will be located in Census Tract 53. 4 Cedar Construction $250.00 EACH $2,500.00 MFT Construction $200.00 EACH _ $2,000.00 L. G. Roloff Construction Company,Inc. $96.16 EACH $961.60 Vincentini Plumbing $250.00 EACH $2,500.00 • Page 8 of 9, 7/15/2011 8:11:36 AM, Bid Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD 8:11:36 AM, Bid Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD The Special Sewer Connection fee shall be collected by the 6 • nts. Prior to final signature by the City of this Agreement, Subdivider will provide City with an irrevocable letter of credit issued by a reputable financial institution in an amount no less than Subdivider's required contribution. City and Subdivider may agree to other financial assurance in their sole discretion. In the event that Subdivider fails to maintain such financial assurance or defaults in its obligation to make the financial contribution, City shall have the right to suspend processing and approval of building permits for the Area to be Developed until such default is cured. 4 lled until such time as they will not be negatively 2 ipril' g tQQ 1 q 1 a l [z 4x m5-x P ag4ghO#0§ ggie gE } 3i ,?m Y +;i riri yr; liiea _444 .- :4 - I z o p ,�C R ,B8 '6 Bf A, REE Qg ` F I� 9 i 7 A" i i' �1 1 - d h SI Or R fRf Rdag§'d .,X�� "45g iirp Ro n , W EFpp eE hid; _ $�.�_Z. °�- m p'g.b tSy�itJ daR F L �:. R '' FSic $ 4Ba� 11191aa : . 111 1 DIN H� 5ex.x2 i i O � ,p 3a � ggS �p�m� � 'f`./+ $ $ii' Sa4S�F3t?g£ al�9 1 Will ! 'so A hi i R 4 i PPiI i FOOT.PLAT w' km�eoom,o H PIP-� O�OLSSON A -- 1 f STERLING RIDGE _..._.___ ASSOCIATES N !" ula'E OMANANENNASKA I2a1) - REVISIONS .........---.—_.... 'u'.:`.rsn ..v":,:m ceived 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 Slates,and any United States territories and possessions.However,the tern"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. http://www.whitehouse.gov/omb/circulars_a122_2004/ 8/17/2011 of a cost grouping directly to the function benefited,the allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an-engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. • • http://www.whitehouse.gov/omb/circulars a122_2004/ 8/17/2011 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 $235,000.00 in NSP3 funds and $15,000.00 in City General 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 Developer as soon as reasonably possible and the Agreement will be terminated. 7.02.1 Funds Allocated to the Developer. Funds allocated to the Developer shall be in the form of an unsecured grant for the purposes set forth in this Agreement. Payments will be contingent on Duties and Conditions specified herein. Draw downs for the final payment to reimburse Developer of actual construction costs shall not be made until the property is sold to an eligible homebuyer. 7.02.2 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 included in this Agreement, nor shall the City incur any liability hereunder, unless and until the Developer has timely and fully complied with its duties and obligations hereunder. No payments shall be made for any work, labor, material or expenses incurred the Director deems to be: 7.02.2.1 not in conformance with applicable state, federal and/or local laws, including but not limited to, the building, plumbing and/or electrical codes; or, 7.02.2.2 not in conformance with all plans, working drawings and/or specifications as approved. 7.02.2.3 unacceptable or substandard; or, 7.02.2.4 not in accordance with this Agreement or related contracts as approved for this Project. 7.03 Progress Payments. Final payment, as may be authorized by the Director or his designated representative, is subject-to: 7.03.1 Receipt, verification and approval of an AIA Document G702 "Application and Certificate for Payment" or comparable document, such document being prepared by the Developer's architect or authorized person and approved by the Developer and the City Construction Specialist before being submitted to the Planning Department for payment. All documents for each pay request submission must be forwarded directly to the Planning Department Construction Specialist assigned to the Project. This shall include all Application and Certificate for Payment (AIA Document G702 19 for Entitlements (SAVE) Program. 16 e City. 8 Income (MFI) (Exhibit"C"). 5 at will be located in Census Tract 53. 4 Cedar Construction $250.00 EACH $2,500.00 MFT Construction $200.00 EACH _ $2,000.00 L. G. Roloff Construction Company,Inc. $96.16 EACH $961.60 Vincentini Plumbing $250.00 EACH $2,500.00 • Page 8 of 9, 7/15/2011 8:11:36 AM, Bid Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD 8:11:36 AM, Bid Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD The Special Sewer Connection fee shall be collected by the 6 • nts. Prior to final signature by the City of this Agreement, Subdivider will provide City with an irrevocable letter of credit issued by a reputable financial institution in an amount no less than Subdivider's required contribution. City and Subdivider may agree to other financial assurance in their sole discretion. In the event that Subdivider fails to maintain such financial assurance or defaults in its obligation to make the financial contribution, City shall have the right to suspend processing and approval of building permits for the Area to be Developed until such default is cured. 4 lled until such time as they will not be negatively 2 ipril' g tQQ 1 q 1 a l [z 4x m5-x P ag4ghO#0§ ggie gE } 3i ,?m Y +;i riri yr; liiea _444 .- :4 - I z o p ,�C R ,B8 '6 Bf A, REE Qg ` F I� 9 i 7 A" i i' �1 1 - d h SI Or R fRf Rdag§'d .,X�� "45g iirp Ro n , W EFpp eE hid; _ $�.�_Z. °�- m p'g.b tSy�itJ daR F L �:. R '' FSic $ 4Ba� 11191aa : . 111 1 DIN H� 5ex.x2 i i O � ,p 3a � ggS �p�m� � 'f`./+ $ $ii' Sa4S�F3t?g£ al�9 1 Will ! 'so A hi i R 4 i PPiI i FOOT.PLAT w' km�eoom,o H PIP-� O�OLSSON A -- 1 f STERLING RIDGE _..._.___ ASSOCIATES N !" ula'E OMANANENNASKA I2a1) - REVISIONS .........---.—_.... 'u'.:`.rsn ..v":,:m ceived 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 Slates,and any United States territories and possessions.However,the tern"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. http://www.whitehouse.gov/omb/circulars_a122_2004/ 8/17/2011 of a cost grouping directly to the function benefited,the allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an-engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. • • http://www.whitehouse.gov/omb/circulars a122_2004/ 8/17/2011 or comparable document) for the entire Project. This also includes pay requests that do not require City funds. 7.03.2 Receipt of requisite financial status reports. 7.03.3 Evidence that property meets NDED Construction Standards. 7.03.4 Evidence acceptable to the City Planning Director that property has been sold to an eligible homebuyer in accordance with the NSP3 Contract No. 11-NS-04. 7.04 Inspections. The City shall perform final inspection to certify Project Completion prior to disbursement of NSP3 funds. 7.05 Technical Assistance. The Director shall assist the Developer in the same manner the Director provides technical assistance to other developers during the construction phase to ensure compliance with such housing quality standards, property rehabilitation standards and NDED Rehabilitation/Construction Standards. SECTION 8. MUTUAL AGREEMENTS BETWEEN CITY AND DEVELOPER 8.01 Release of Information Laws. The Developer 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 Developer further agrees to indemnify and hold harmless the City of Omaha for any liability arising out of the improper use by the Developer of information provided. 8.02 Applicable Laws. Parties to this Agreement shall conform with all existing and applicable City ordinances, resolutions, state laws, federal laws, and all existing and applicable rules and regulations. Nebraska law will govern the 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. 20 being submitted to the Planning Department for payment. All documents for each pay request submission must be forwarded directly to the Planning Department Construction Specialist assigned to the Project. This shall include all Application and Certificate for Payment (AIA Document G702 19 for Entitlements (SAVE) Program. 16 e City. 8 Income (MFI) (Exhibit"C"). 5 at will be located in Census Tract 53. 4 Cedar Construction $250.00 EACH $2,500.00 MFT Construction $200.00 EACH _ $2,000.00 L. G. Roloff Construction Company,Inc. $96.16 EACH $961.60 Vincentini Plumbing $250.00 EACH $2,500.00 • Page 8 of 9, 7/15/2011 8:11:36 AM, Bid Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD 8:11:36 AM, Bid Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD The Special Sewer Connection fee shall be collected by the 6 • nts. Prior to final signature by the City of this Agreement, Subdivider will provide City with an irrevocable letter of credit issued by a reputable financial institution in an amount no less than Subdivider's required contribution. City and Subdivider may agree to other financial assurance in their sole discretion. In the event that Subdivider fails to maintain such financial assurance or defaults in its obligation to make the financial contribution, City shall have the right to suspend processing and approval of building permits for the Area to be Developed until such default is cured. 4 lled until such time as they will not be negatively 2 ipril' g tQQ 1 q 1 a l [z 4x m5-x P ag4ghO#0§ ggie gE } 3i ,?m Y +;i riri yr; liiea _444 .- :4 - I z o p ,�C R ,B8 '6 Bf A, REE Qg ` F I� 9 i 7 A" i i' �1 1 - d h SI Or R fRf Rdag§'d .,X�� "45g iirp Ro n , W EFpp eE hid; _ $�.�_Z. °�- m p'g.b tSy�itJ daR F L �:. R '' FSic $ 4Ba� 11191aa : . 111 1 DIN H� 5ex.x2 i i O � ,p 3a � ggS �p�m� � 'f`./+ $ $ii' Sa4S�F3t?g£ al�9 1 Will ! 'so A hi i R 4 i PPiI i FOOT.PLAT w' km�eoom,o H PIP-� O�OLSSON A -- 1 f STERLING RIDGE _..._.___ ASSOCIATES N !" ula'E OMANANENNASKA I2a1) - REVISIONS .........---.—_.... 'u'.:`.rsn ..v":,:m ceived 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 Slates,and any United States territories and possessions.However,the tern"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. http://www.whitehouse.gov/omb/circulars_a122_2004/ 8/17/2011 of a cost grouping directly to the function benefited,the allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an-engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. • • http://www.whitehouse.gov/omb/circulars a122_2004/ 8/17/2011 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 Developer 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 Compensation, FICA, retirement, life and/or medical insurance and Workers' Compensation Insurance as the Developer is an Independent Contractor. 8.05 Project Roles. The Developer shall ensure that the Project meets the objectives stated herein. The City has selected the Developer to assist in the Project since it is consistent with the Consolidated Plan. With respect to this Project, the City is not acting as the Developer's architect or engineer. The City makes no warranties, express or implied, as to the Construction Work. The City owes no duty to the Developer or any other persons that shall arise because of any inspection of the premises by the City's agents or employees. 8.06 Captions. Captions used in this Agreement are for convenience and are not used in the construction of this Agreement. 8.07 Merger. This Agreement shall not be merged into any other oral or written agreement, lease or deed of any type. 8.08 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. 8.09 Assignment. The Developer may not assign its rights or obligations under this Agreement without the express prior written consent of the City. 8.10 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. 8.11 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 "N", 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. 21 (MFI) (Exhibit"C"). 5 at will be located in Census Tract 53. 4 Cedar Construction $250.00 EACH $2,500.00 MFT Construction $200.00 EACH _ $2,000.00 L. G. Roloff Construction Company,Inc. $96.16 EACH $961.60 Vincentini Plumbing $250.00 EACH $2,500.00 • Page 8 of 9, 7/15/2011 8:11:36 AM, Bid Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD 8:11:36 AM, Bid Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD The Special Sewer Connection fee shall be collected by the 6 • nts. Prior to final signature by the City of this Agreement, Subdivider will provide City with an irrevocable letter of credit issued by a reputable financial institution in an amount no less than Subdivider's required contribution. City and Subdivider may agree to other financial assurance in their sole discretion. In the event that Subdivider fails to maintain such financial assurance or defaults in its obligation to make the financial contribution, City shall have the right to suspend processing and approval of building permits for the Area to be Developed until such default is cured. 4 lled until such time as they will not be negatively 2 ipril' g tQQ 1 q 1 a l [z 4x m5-x P ag4ghO#0§ ggie gE } 3i ,?m Y +;i riri yr; liiea _444 .- :4 - I z o p ,�C R ,B8 '6 Bf A, REE Qg ` F I� 9 i 7 A" i i' �1 1 - d h SI Or R fRf Rdag§'d .,X�� "45g iirp Ro n , W EFpp eE hid; _ $�.�_Z. °�- m p'g.b tSy�itJ daR F L �:. R '' FSic $ 4Ba� 11191aa : . 111 1 DIN H� 5ex.x2 i i O � ,p 3a � ggS �p�m� � 'f`./+ $ $ii' Sa4S�F3t?g£ al�9 1 Will ! 'so A hi i R 4 i PPiI i FOOT.PLAT w' km�eoom,o H PIP-� O�OLSSON A -- 1 f STERLING RIDGE _..._.___ ASSOCIATES N !" ula'E OMANANENNASKA I2a1) - REVISIONS .........---.—_.... 'u'.:`.rsn ..v":,:m ceived 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 Slates,and any United States territories and possessions.However,the tern"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. http://www.whitehouse.gov/omb/circulars_a122_2004/ 8/17/2011 of a cost grouping directly to the function benefited,the allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an-engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. • • http://www.whitehouse.gov/omb/circulars a122_2004/ 8/17/2011 8.12 Reversion of Assets. Upon the expiration of this Agreement,the Developer shall transfer to the City of Omaha any NSP3 and/or City General funds on hand at the time of expiration and any accounts receivable attributable to the use of NSP3 funds (24 C.F.R. 92.504(c)(2)(vii)). 8.13 Indemnification. The Developer shall indemnify and hold the City harmless from and against: (1) any and all claims arising from contracts between the Developer 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. 8.14 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. 8.15 Disclosure of Lobbying. The Developer shall certify and disclose, to the best of its knowledge and belief, that: 8.15.1 No Federal appropriated funds have been paid or will be paid, by or on behalf of the Developer, 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. 8.15.2 If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer of employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, the Developer shall complete and submit standard Form-LLL, "Disclosure Form to Report Lobbying", in accordance with its instructions. 8.15.3 The language of this certification shall 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. 22 funds and interest in any account hereunder shall become the property of the City and shall be returned to the City. 21 (MFI) (Exhibit"C"). 5 at will be located in Census Tract 53. 4 Cedar Construction $250.00 EACH $2,500.00 MFT Construction $200.00 EACH _ $2,000.00 L. G. Roloff Construction Company,Inc. $96.16 EACH $961.60 Vincentini Plumbing $250.00 EACH $2,500.00 • Page 8 of 9, 7/15/2011 8:11:36 AM, Bid Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD 8:11:36 AM, Bid Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD The Special Sewer Connection fee shall be collected by the 6 • nts. Prior to final signature by the City of this Agreement, Subdivider will provide City with an irrevocable letter of credit issued by a reputable financial institution in an amount no less than Subdivider's required contribution. City and Subdivider may agree to other financial assurance in their sole discretion. In the event that Subdivider fails to maintain such financial assurance or defaults in its obligation to make the financial contribution, City shall have the right to suspend processing and approval of building permits for the Area to be Developed until such default is cured. 4 lled until such time as they will not be negatively 2 ipril' g tQQ 1 q 1 a l [z 4x m5-x P ag4ghO#0§ ggie gE } 3i ,?m Y +;i riri yr; liiea _444 .- :4 - I z o p ,�C R ,B8 '6 Bf A, REE Qg ` F I� 9 i 7 A" i i' �1 1 - d h SI Or R fRf Rdag§'d .,X�� "45g iirp Ro n , W EFpp eE hid; _ $�.�_Z. °�- m p'g.b tSy�itJ daR F L �:. R '' FSic $ 4Ba� 11191aa : . 111 1 DIN H� 5ex.x2 i i O � ,p 3a � ggS �p�m� � 'f`./+ $ $ii' Sa4S�F3t?g£ al�9 1 Will ! 'so A hi i R 4 i PPiI i FOOT.PLAT w' km�eoom,o H PIP-� O�OLSSON A -- 1 f STERLING RIDGE _..._.___ ASSOCIATES N !" ula'E OMANANENNASKA I2a1) - REVISIONS .........---.—_.... 'u'.:`.rsn ..v":,:m ceived 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 Slates,and any United States territories and possessions.However,the tern"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. http://www.whitehouse.gov/omb/circulars_a122_2004/ 8/17/2011 of a cost grouping directly to the function benefited,the allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an-engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. • • http://www.whitehouse.gov/omb/circulars a122_2004/ 8/17/2011 8.16 Notices. The City and the Developer 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: City of Omaha Planning Department 1819 Farnam Street, Room 1111 Omaha,Nebraska 68183 2) Developer: Habitat For Humanity of Omaha, Inc., a Nebraska Non-profit Corporation Amanda Brewer, Executive Director/President 2204 Ames Avenue Omaha NE 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. 8.17 Applicability. This Agreement shall be binding upon the parties hereto and shall run with the Property. SECTION 9. DEFAULT PROVISIONS. 9.01 Remedies. If, through any cause, the Developer shall fail to fulfill in a timely and proper manner any obligations under this Agreement, or violate any of the • covenants, representations or agreements hereof, the City may upon written notice terminate this Agreement or such parts thereof as to this Agreement, and may initiate foreclosure proceedings for any damages caused to the City by reasons of such default and termination. 23 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. 8.15.2 If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer of employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, the Developer shall complete and submit standard Form-LLL, "Disclosure Form to Report Lobbying", in accordance with its instructions. 8.15.3 The language of this certification shall 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. 22 funds and interest in any account hereunder shall become the property of the City and shall be returned to the City. 21 (MFI) (Exhibit"C"). 5 at will be located in Census Tract 53. 4 Cedar Construction $250.00 EACH $2,500.00 MFT Construction $200.00 EACH _ $2,000.00 L. G. Roloff Construction Company,Inc. $96.16 EACH $961.60 Vincentini Plumbing $250.00 EACH $2,500.00 • Page 8 of 9, 7/15/2011 8:11:36 AM, Bid Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD 8:11:36 AM, Bid Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD The Special Sewer Connection fee shall be collected by the 6 • nts. Prior to final signature by the City of this Agreement, Subdivider will provide City with an irrevocable letter of credit issued by a reputable financial institution in an amount no less than Subdivider's required contribution. City and Subdivider may agree to other financial assurance in their sole discretion. In the event that Subdivider fails to maintain such financial assurance or defaults in its obligation to make the financial contribution, City shall have the right to suspend processing and approval of building permits for the Area to be Developed until such default is cured. 4 lled until such time as they will not be negatively 2 ipril' g tQQ 1 q 1 a l [z 4x m5-x P ag4ghO#0§ ggie gE } 3i ,?m Y +;i riri yr; liiea _444 .- :4 - I z o p ,�C R ,B8 '6 Bf A, REE Qg ` F I� 9 i 7 A" i i' �1 1 - d h SI Or R fRf Rdag§'d .,X�� "45g iirp Ro n , W EFpp eE hid; _ $�.�_Z. °�- m p'g.b tSy�itJ daR F L �:. R '' FSic $ 4Ba� 11191aa : . 111 1 DIN H� 5ex.x2 i i O � ,p 3a � ggS �p�m� � 'f`./+ $ $ii' Sa4S�F3t?g£ al�9 1 Will ! 'so A hi i R 4 i PPiI i FOOT.PLAT w' km�eoom,o H PIP-� O�OLSSON A -- 1 f STERLING RIDGE _..._.___ ASSOCIATES N !" ula'E OMANANENNASKA I2a1) - REVISIONS .........---.—_.... 'u'.:`.rsn ..v":,:m ceived 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 Slates,and any United States territories and possessions.However,the tern"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. http://www.whitehouse.gov/omb/circulars_a122_2004/ 8/17/2011 of a cost grouping directly to the function benefited,the allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an-engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. • • http://www.whitehouse.gov/omb/circulars a122_2004/ 8/17/2011 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date indicated below: ATTES • CITY OF OMAHA: ‘01 CI CLERK F TIM CITY OF OMA / OR OF THE CIT OF OMAHA HABITAT FOR HUMANITY OF • OMAHA, INC., a Nebraska Non-profit Corporation ESS: By: PttA4A444 a/M0// Name: t.c., , i mire/ II ate Amanda Brewer Date Fide: / Executive Director/President APPROVED AS TO FORM: ASSISTANT CITY AtTORNEY Date 24 a� o v, A, () = 4- 7 BCD `` .• p, ' -AD p , , p, • '-' A(• c� a `b �O``s o 2 `n a' f ' 'bO `° 7� Et) CD CD CD 0 'C AD UQ rn CD Ao En kC . CD A3 Cn 1 x Z $ - SCHEDULE OF EXHIBITS Exhibit Agreement Location Description A 1.02 Habitat For Humanity of Omaha, Inc., Articles of Incorporation, Bylaws, Board Members, and Corporate Resolution B 3.02.11 Acknowledgement of Covenant Running With Land C 1.15, 1.17 and 2.01.1 Median Family Income Chart D 1.23 Definition—Program Income E 3.02.1, 5.01.1, OMB Circular A-110 5.01.2, 5.04,5.05 F 3.02.10 Section 504 Exemption Checklist G 5.01.2 OMB Circular A-122 H 4.08 Davis-Bacon Exemption Checklist I 4.10 Affirmative Marketing Policy J 5.01.3 OMB Circular A-133 K 1.19,5.03.3 Occupancy Report, Definition of Income, Computing Annual Income Form (Assets), Attestation Form for Public Benefit to Homebuyer (LB 403), HOME Maximum Homebuyer Mortgage Limits L 5.04. Financial Status Report M 6.03 Soil Work Policy N 8.11 Termination—24 C.F.R. 85.43—85.44 O 5.03.3.3,5.06.7.1 U.S.Attestation of Citizenship for Public Benefit P 5.06.7.2 Employee Classification Act ATTACHMENTS: 1. NDED Contract No. 11-NS-04 2 City of Omaha Definition of Income 3 Equal Employment Opportunity Clause 4 Section 3 Clause 5 Minority and Women Business Plan 6 Subsidy Layering Policy 7 Cost Certification by City Construction Specialist pinlsf1566-agreement 25 ent or modification of any Federal contract, grant, loan, or cooperative agreement. 8.15.2 If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer of employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, the Developer shall complete and submit standard Form-LLL, "Disclosure Form to Report Lobbying", in accordance with its instructions. 8.15.3 The language of this certification shall 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. 22 funds and interest in any account hereunder shall become the property of the City and shall be returned to the City. 21 (MFI) (Exhibit"C"). 5 at will be located in Census Tract 53. 4 Cedar Construction $250.00 EACH $2,500.00 MFT Construction $200.00 EACH _ $2,000.00 L. G. Roloff Construction Company,Inc. $96.16 EACH $961.60 Vincentini Plumbing $250.00 EACH $2,500.00 • Page 8 of 9, 7/15/2011 8:11:36 AM, Bid Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD 8:11:36 AM, Bid Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD The Special Sewer Connection fee shall be collected by the 6 • nts. Prior to final signature by the City of this Agreement, Subdivider will provide City with an irrevocable letter of credit issued by a reputable financial institution in an amount no less than Subdivider's required contribution. City and Subdivider may agree to other financial assurance in their sole discretion. In the event that Subdivider fails to maintain such financial assurance or defaults in its obligation to make the financial contribution, City shall have the right to suspend processing and approval of building permits for the Area to be Developed until such default is cured. 4 lled until such time as they will not be negatively 2 ipril' g tQQ 1 q 1 a l [z 4x m5-x P ag4ghO#0§ ggie gE } 3i ,?m Y +;i riri yr; liiea _444 .- :4 - I z o p ,�C R ,B8 '6 Bf A, REE Qg ` F I� 9 i 7 A" i i' �1 1 - d h SI Or R fRf Rdag§'d .,X�� "45g iirp Ro n , W EFpp eE hid; _ $�.�_Z. °�- m p'g.b tSy�itJ daR F L �:. R '' FSic $ 4Ba� 11191aa : . 111 1 DIN H� 5ex.x2 i i O � ,p 3a � ggS �p�m� � 'f`./+ $ $ii' Sa4S�F3t?g£ al�9 1 Will ! 'so A hi i R 4 i PPiI i FOOT.PLAT w' km�eoom,o H PIP-� O�OLSSON A -- 1 f STERLING RIDGE _..._.___ ASSOCIATES N !" ula'E OMANANENNASKA I2a1) - REVISIONS .........---.—_.... 'u'.:`.rsn ..v":,:m ceived 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 Slates,and any United States territories and possessions.However,the tern"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. http://www.whitehouse.gov/omb/circulars_a122_2004/ 8/17/2011 of a cost grouping directly to the function benefited,the allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an-engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. • • http://www.whitehouse.gov/omb/circulars a122_2004/ 8/17/2011 AMENDED AND RESTATED Sec of S/a4Y - CORP j 1►(lill1111111111111111)1111111f 1111IIj1 ARTICLES OF INCORPORATION 1000312321 Pgs: 6 OMAHA HABITAT FOR HUMANITY, IN OF Filed: 07/17/2002 10:07 AM OMAHA HABITAT FOR HUMANITY, INC. • Pursuant to the Nebraska Nonprofit Corporation Act, Omaha Habitat For Humanity, Inc., a Nebraska nonprofit corporation, executes the following Amended and Restated Articles of Incorporation:, • • ARTICLE-I NAME The corporate name for the corporation is Omaha Habitat For Humanity,Inc. ARTICLE If.. . DURATION • • The corporation shall have perpetual duration. • ARTICLE] I • PUBLIC BENEI IT CORPORATION • This corporation is a public benefit corporation. ARTICLE IV • PURPOSES The purposes for which the corporation is organized are as follows: 1. To witness to and implement the gospel of Jesus Christ in Nebraska and throughout the United States and the world by working with economically disadvantaged people to help them to create a better human habitat in which to live and work; 2. To cooperate with other charitable organizations, through grants and otherwise, which are working to develop a better human habitat for economically disadvantaged people; - I MMU262104.1 S nity Clause 4 Section 3 Clause 5 Minority and Women Business Plan 6 Subsidy Layering Policy 7 Cost Certification by City Construction Specialist pinlsf1566-agreement 25 ent or modification of any Federal contract, grant, loan, or cooperative agreement. 8.15.2 If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer of employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, the Developer shall complete and submit standard Form-LLL, "Disclosure Form to Report Lobbying", in accordance with its instructions. 8.15.3 The language of this certification shall 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. 22 funds and interest in any account hereunder shall become the property of the City and shall be returned to the City. 21 (MFI) (Exhibit"C"). 5 at will be located in Census Tract 53. 4 Cedar Construction $250.00 EACH $2,500.00 MFT Construction $200.00 EACH _ $2,000.00 L. G. Roloff Construction Company,Inc. $96.16 EACH $961.60 Vincentini Plumbing $250.00 EACH $2,500.00 • Page 8 of 9, 7/15/2011 8:11:36 AM, Bid Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD 8:11:36 AM, Bid Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD The Special Sewer Connection fee shall be collected by the 6 • nts. Prior to final signature by the City of this Agreement, Subdivider will provide City with an irrevocable letter of credit issued by a reputable financial institution in an amount no less than Subdivider's required contribution. City and Subdivider may agree to other financial assurance in their sole discretion. In the event that Subdivider fails to maintain such financial assurance or defaults in its obligation to make the financial contribution, City shall have the right to suspend processing and approval of building permits for the Area to be Developed until such default is cured. 4 lled until such time as they will not be negatively 2 ipril' g tQQ 1 q 1 a l [z 4x m5-x P ag4ghO#0§ ggie gE } 3i ,?m Y +;i riri yr; liiea _444 .- :4 - I z o p ,�C R ,B8 '6 Bf A, REE Qg ` F I� 9 i 7 A" i i' �1 1 - d h SI Or R fRf Rdag§'d .,X�� "45g iirp Ro n , W EFpp eE hid; _ $�.�_Z. °�- m p'g.b tSy�itJ daR F L �:. R '' FSic $ 4Ba� 11191aa : . 111 1 DIN H� 5ex.x2 i i O � ,p 3a � ggS �p�m� � 'f`./+ $ $ii' Sa4S�F3t?g£ al�9 1 Will ! 'so A hi i R 4 i PPiI i FOOT.PLAT w' km�eoom,o H PIP-� O�OLSSON A -- 1 f STERLING RIDGE _..._.___ ASSOCIATES N !" ula'E OMANANENNASKA I2a1) - REVISIONS .........---.—_.... 'u'.:`.rsn ..v":,:m ceived 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 Slates,and any United States territories and possessions.However,the tern"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. http://www.whitehouse.gov/omb/circulars_a122_2004/ 8/17/2011 of a cost grouping directly to the function benefited,the allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an-engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. • • http://www.whitehouse.gov/omb/circulars a122_2004/ 8/17/2011 3. To communicate the gospel of Jesus Christ by means of the spoken and written word; 4. To receive,maintain and accept as assets of the corporation, any property, whether real, personal or mixed,by way of gift, bequest, devise, or purchase from any person, firm, trust, or corporation, to be held, administered and disposed of exclusively for charitable, religious, educational, and scientific purposes within the meaning of Section 501(c)(3) of the Internal Revenue Code, as amended, and in accordance with and pursuant to the provisions of these Amended and Restated Articles of Incorporation; but no gift, bequest, devise, or purchase of any such property shall be received or made and accepted if it is conditioned or limited in such manner as shall require the disposition of income or principal to any organization other than a "charitable organization" or for any purpose other than "charitable purposes" which would jeopardize the status of the corporation as an.entity exempt from federal income tax pursuant to the relevant provisions of the Internal Revenue Code, as amended; and 5. To exclusively promote and carry on any other religious, charitable or educational purposes and activities for which corporations may be organized and operated under the relevant provisions of the Internal Revenue Code, as amended, and under the Nebraska Nonprofit Corporation Act. ARTICLE V • MEMBERS The corporation will have no members. ARTICLE VI RESTRICTIONS ON ACTIVITIES No part of the net earnings of the corporation shall inure to the benefit of, or be distributed to, any of the directors or officers of the corporation or any other private individuals; provided, that the corporation may pay reasonable compensation for services rendered to or for the corporation and may make payments and distributions in furtherance of the purposes for which the corporation is organized. No substantial part of the activities of the corporation shall be the carrying on of propaganda, or otherwise attempting, to influence legislation; and the corporation shall not participate in, or intervene in (including the publishing or distributing of MML/262204.1 2 submit standard Form-LLL, "Disclosure Form to Report Lobbying", in accordance with its instructions. 8.15.3 The language of this certification shall 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. 22 funds and interest in any account hereunder shall become the property of the City and shall be returned to the City. 21 (MFI) (Exhibit"C"). 5 at will be located in Census Tract 53. 4 Cedar Construction $250.00 EACH $2,500.00 MFT Construction $200.00 EACH _ $2,000.00 L. G. Roloff Construction Company,Inc. $96.16 EACH $961.60 Vincentini Plumbing $250.00 EACH $2,500.00 • Page 8 of 9, 7/15/2011 8:11:36 AM, Bid Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD 8:11:36 AM, Bid Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD The Special Sewer Connection fee shall be collected by the 6 • nts. Prior to final signature by the City of this Agreement, Subdivider will provide City with an irrevocable letter of credit issued by a reputable financial institution in an amount no less than Subdivider's required contribution. City and Subdivider may agree to other financial assurance in their sole discretion. In the event that Subdivider fails to maintain such financial assurance or defaults in its obligation to make the financial contribution, City shall have the right to suspend processing and approval of building permits for the Area to be Developed until such default is cured. 4 lled until such time as they will not be negatively 2 ipril' g tQQ 1 q 1 a l [z 4x m5-x P ag4ghO#0§ ggie gE } 3i ,?m Y +;i riri yr; liiea _444 .- :4 - I z o p ,�C R ,B8 '6 Bf A, REE Qg ` F I� 9 i 7 A" i i' �1 1 - d h SI Or R fRf Rdag§'d .,X�� "45g iirp Ro n , W EFpp eE hid; _ $�.�_Z. °�- m p'g.b tSy�itJ daR F L �:. R '' FSic $ 4Ba� 11191aa : . 111 1 DIN H� 5ex.x2 i i O � ,p 3a � ggS �p�m� � 'f`./+ $ $ii' Sa4S�F3t?g£ al�9 1 Will ! 'so A hi i R 4 i PPiI i FOOT.PLAT w' km�eoom,o H PIP-� O�OLSSON A -- 1 f STERLING RIDGE _..._.___ ASSOCIATES N !" ula'E OMANANENNASKA I2a1) - REVISIONS .........---.—_.... 'u'.:`.rsn ..v":,:m ceived 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 Slates,and any United States territories and possessions.However,the tern"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. http://www.whitehouse.gov/omb/circulars_a122_2004/ 8/17/2011 of a cost grouping directly to the function benefited,the allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an-engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. • • http://www.whitehouse.gov/omb/circulars a122_2004/ 8/17/2011 statements), any political campaign on behalf of(or in opposition to) any candidate for public office. Notwithstanding any other provision contained in these Articles of Incorporation, the corporation shall not carry on or conduct any activities not permitted to be carried on or conducted by (a) an organization exempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code of 1986 or corresponding provisions of any subsequent federal tax laws or (b) an organization contributions to which are deductible under Section 170(c)(2) of the Internal Revenue Code of 1986 or corresponding provisions of any subsequent federal tax laws. � I ARTICLE VII REGISTERED OFFICE AND AGENT The street address of the registered office of the corporation is 2204 Ames Avenue, • Omaha,Nebraska, 68110; and the name of the registered agent of the corporation at that office is Nancy C.Hemesath ARTICLE VIII DISTRIBUTION OF ASSETS UPON DISSOLUTION In the event of the dissolution and liquidation of this corporation, to the extent allowed or permitted under applicable laws, the property and assets of the corporation shall be, as determined by the board of directors of the corporation, distributed to or sold and the proceeds of such sales distributed to: (i) HFH International, Inc., a Georgia Nonprofit Corporation•and a corporation exempt under Section 501(c)(3) of the Internal Revenue Code, as amended; or (ii) any other organization(s) organized and operating for the same purposes for which the corporation is organized afd operating or any organization(s), foundation(s), fund(s), or corporation(s) organized and operating exclusively for religious, charitable, scientific, educational, or other purposes permitted by Section 501(c)(3) of the Internal Revenue Code, as amended, all of which such orgat1i7ations, foundations, funds, or corporations shall be exempt under Section 501(c)(3) of the Internal Revenue Code, as amended. In the event that any assets are not disposed of in accordance with the provisions of these Amended and Restated Articles of Incorporation or that the corporation shall fail to act within a reasonable time in the manner provided in these Amended and restated Articles of Incorporation, the Court of Douglas County shall, upon application of one or more persons having a real interest in the corporation or its MML262104.1 3 l subawards at all tiers, (including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreements) and that all subrecipients shall certify and disclose accordingly. 22 funds and interest in any account hereunder shall become the property of the City and shall be returned to the City. 21 (MFI) (Exhibit"C"). 5 at will be located in Census Tract 53. 4 Cedar Construction $250.00 EACH $2,500.00 MFT Construction $200.00 EACH _ $2,000.00 L. G. Roloff Construction Company,Inc. $96.16 EACH $961.60 Vincentini Plumbing $250.00 EACH $2,500.00 • Page 8 of 9, 7/15/2011 8:11:36 AM, Bid Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD 8:11:36 AM, Bid Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD The Special Sewer Connection fee shall be collected by the 6 • nts. Prior to final signature by the City of this Agreement, Subdivider will provide City with an irrevocable letter of credit issued by a reputable financial institution in an amount no less than Subdivider's required contribution. City and Subdivider may agree to other financial assurance in their sole discretion. In the event that Subdivider fails to maintain such financial assurance or defaults in its obligation to make the financial contribution, City shall have the right to suspend processing and approval of building permits for the Area to be Developed until such default is cured. 4 lled until such time as they will not be negatively 2 ipril' g tQQ 1 q 1 a l [z 4x m5-x P ag4ghO#0§ ggie gE } 3i ,?m Y +;i riri yr; liiea _444 .- :4 - I z o p ,�C R ,B8 '6 Bf A, REE Qg ` F I� 9 i 7 A" i i' �1 1 - d h SI Or R fRf Rdag§'d .,X�� "45g iirp Ro n , W EFpp eE hid; _ $�.�_Z. °�- m p'g.b tSy�itJ daR F L �:. R '' FSic $ 4Ba� 11191aa : . 111 1 DIN H� 5ex.x2 i i O � ,p 3a � ggS �p�m� � 'f`./+ $ $ii' Sa4S�F3t?g£ al�9 1 Will ! 'so A hi i R 4 i PPiI i FOOT.PLAT w' km�eoom,o H PIP-� O�OLSSON A -- 1 f STERLING RIDGE _..._.___ ASSOCIATES N !" ula'E OMANANENNASKA I2a1) - REVISIONS .........---.—_.... 'u'.:`.rsn ..v":,:m ceived 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 Slates,and any United States territories and possessions.However,the tern"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. http://www.whitehouse.gov/omb/circulars_a122_2004/ 8/17/2011 of a cost grouping directly to the function benefited,the allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an-engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. • • http://www.whitehouse.gov/omb/circulars a122_2004/ 8/17/2011 V ' • • assets, make such distributions) as provided in these Amended and Restated Articles of Incorporation. ARTICLE IX GENERAL 1. The corporation shall distribute its income for each taxable year at such time and in such manner as not to become subject to the tax on undistributed income imposed by Section 4942 of the Internal Revenue Code of 1986 or corresponding provisions of any subsequent federal tax laws. 2. The corporation shall not engage in any act of self- dealing as defined in Section • 4941(d) of the Internal Revenue Code of 1986 or corresponding provisions of any subsequent federal tax laws. 3. The corporation shall not retain any excess business holdings as defined in Section 4943(c) of the Internal Revenue Code of 1986 or corresponding provisions of any ' subsequent federal tax laws. • 4. The corporation shall not make any investments in such manner as to subject it to tax under Section 4944 of the Internal Revenue Code of 1986 or corresponding provisions of any subsequent federal tax laws. 5. The corporation shall not make any taxable expenditures as defined in Section 4945(d) of the Internal Revenue Code of 1986 or corresponding provisions of any subsequent federal tax laws. ARTICLE X INDEMNIFICATION OF DIRECTORS • The corporation shall, and by virtue of the provisions of this Article X is obligated to, indemnify each director of the corporation to the fullest extent permitted by law in accordance with Section 21-1997 of the Nebraska Nonprofit Corporation Act for liability, as defined in Section 21-1.996 of the Nebraska Nonprofit Corporation Act, to any person for any action taken, or any failure to take any action, as a director of the corporation except liability for(a)receipt of a financial benefit to.which such director is not entitled,(b) an intentional infliction of harm on the corporation, (c) a violation of Section 21-1989 of the Nebraska Nonprofit Corporation Act, or (d) an intentional violation of criminal law. The foregoing provisions of this Article X shall be MMti262104.1 4 a reasonable time in the manner provided in these Amended and restated Articles of Incorporation, the Court of Douglas County shall, upon application of one or more persons having a real interest in the corporation or its MML262104.1 3 l subawards at all tiers, (including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreements) and that all subrecipients shall certify and disclose accordingly. 22 funds and interest in any account hereunder shall become the property of the City and shall be returned to the City. 21 (MFI) (Exhibit"C"). 5 at will be located in Census Tract 53. 4 Cedar Construction $250.00 EACH $2,500.00 MFT Construction $200.00 EACH _ $2,000.00 L. G. Roloff Construction Company,Inc. $96.16 EACH $961.60 Vincentini Plumbing $250.00 EACH $2,500.00 • Page 8 of 9, 7/15/2011 8:11:36 AM, Bid Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD 8:11:36 AM, Bid Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD The Special Sewer Connection fee shall be collected by the 6 • nts. Prior to final signature by the City of this Agreement, Subdivider will provide City with an irrevocable letter of credit issued by a reputable financial institution in an amount no less than Subdivider's required contribution. City and Subdivider may agree to other financial assurance in their sole discretion. In the event that Subdivider fails to maintain such financial assurance or defaults in its obligation to make the financial contribution, City shall have the right to suspend processing and approval of building permits for the Area to be Developed until such default is cured. 4 lled until such time as they will not be negatively 2 ipril' g tQQ 1 q 1 a l [z 4x m5-x P ag4ghO#0§ ggie gE } 3i ,?m Y +;i riri yr; liiea _444 .- :4 - I z o p ,�C R ,B8 '6 Bf A, REE Qg ` F I� 9 i 7 A" i i' �1 1 - d h SI Or R fRf Rdag§'d .,X�� "45g iirp Ro n , W EFpp eE hid; _ $�.�_Z. °�- m p'g.b tSy�itJ daR F L �:. R '' FSic $ 4Ba� 11191aa : . 111 1 DIN H� 5ex.x2 i i O � ,p 3a � ggS �p�m� � 'f`./+ $ $ii' Sa4S�F3t?g£ al�9 1 Will ! 'so A hi i R 4 i PPiI i FOOT.PLAT w' km�eoom,o H PIP-� O�OLSSON A -- 1 f STERLING RIDGE _..._.___ ASSOCIATES N !" ula'E OMANANENNASKA I2a1) - REVISIONS .........---.—_.... 'u'.:`.rsn ..v":,:m ceived 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 Slates,and any United States territories and possessions.However,the tern"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. http://www.whitehouse.gov/omb/circulars_a122_2004/ 8/17/2011 of a cost grouping directly to the function benefited,the allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an-engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. • • http://www.whitehouse.gov/omb/circulars a122_2004/ 8/17/2011 deemed to satisfy the determination and authorization requirements referred to in Subsection (a)(3) of Section 21-1999 and in Subsection(c) of Section 21-19,101 of the Nebraska Nonprofit Corporation Act and shall be deemed to obligate the corporation to advance funds to pay for or reimburse expenses in accordance with Section 21-1999 of the Nebraska Nonprofit Corporation Act to the fullest extent permitted by law. ARTICLE XI INDEMNIFICATION OF OFFICERS,EMPLOYEES AND AGENTS The corporation shall, and by virtue of the provisions of this Article XI is obligated to, indemnify each officer, employee and agent of the corporation to the fullest extent permitted by law in accordance with Section 21-19,102 of the Nebraska Nonprofit Corporation Act for liability, as defined in Section 21-1996 of the Nebraska Nonprofit Corporation Act, to any person for any action taken, or any failure to take any action, as an officer, employee or agent of the corporation except liability for (a) receipt of a financial benefit to which such officer, employee or agent is not entitled, (b) an intentional infliction of harm on the corporation, or (c) an intentional violation of criminal law. The foregoing provisions of this Article XI shall be deemed to satisfy the determination and authorization requirements referred to in Subsection (a)(3) of Section 21-1999 and in Subsection(c) of Section 21-19,101 of the Nebraska Nonprofit Corporation Act and shall be deemed to obligate the corporation to advance funds to pay for or reimburse expenses in accordance with Subsection (2) of Section 21-19,102 of the Nebraska Nonprofit'Corporation Act to the fullest extent permitted by law. Dated: ti, I ,2002. Nancy C, He sath,President • MMU262]04.] 5 lure to take any action, as a director of the corporation except liability for(a)receipt of a financial benefit to.which such director is not entitled,(b) an intentional infliction of harm on the corporation, (c) a violation of Section 21-1989 of the Nebraska Nonprofit Corporation Act, or (d) an intentional violation of criminal law. The foregoing provisions of this Article X shall be MMti262104.1 4 a reasonable time in the manner provided in these Amended and restated Articles of Incorporation, the Court of Douglas County shall, upon application of one or more persons having a real interest in the corporation or its MML262104.1 3 l subawards at all tiers, (including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreements) and that all subrecipients shall certify and disclose accordingly. 22 funds and interest in any account hereunder shall become the property of the City and shall be returned to the City. 21 (MFI) (Exhibit"C"). 5 at will be located in Census Tract 53. 4 Cedar Construction $250.00 EACH $2,500.00 MFT Construction $200.00 EACH _ $2,000.00 L. G. Roloff Construction Company,Inc. $96.16 EACH $961.60 Vincentini Plumbing $250.00 EACH $2,500.00 • Page 8 of 9, 7/15/2011 8:11:36 AM, Bid Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD 8:11:36 AM, Bid Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD The Special Sewer Connection fee shall be collected by the 6 • nts. Prior to final signature by the City of this Agreement, Subdivider will provide City with an irrevocable letter of credit issued by a reputable financial institution in an amount no less than Subdivider's required contribution. City and Subdivider may agree to other financial assurance in their sole discretion. In the event that Subdivider fails to maintain such financial assurance or defaults in its obligation to make the financial contribution, City shall have the right to suspend processing and approval of building permits for the Area to be Developed until such default is cured. 4 lled until such time as they will not be negatively 2 ipril' g tQQ 1 q 1 a l [z 4x m5-x P ag4ghO#0§ ggie gE } 3i ,?m Y +;i riri yr; liiea _444 .- :4 - I z o p ,�C R ,B8 '6 Bf A, REE Qg ` F I� 9 i 7 A" i i' �1 1 - d h SI Or R fRf Rdag§'d .,X�� "45g iirp Ro n , W EFpp eE hid; _ $�.�_Z. °�- m p'g.b tSy�itJ daR F L �:. R '' FSic $ 4Ba� 11191aa : . 111 1 DIN H� 5ex.x2 i i O � ,p 3a � ggS �p�m� � 'f`./+ $ $ii' Sa4S�F3t?g£ al�9 1 Will ! 'so A hi i R 4 i PPiI i FOOT.PLAT w' km�eoom,o H PIP-� O�OLSSON A -- 1 f STERLING RIDGE _..._.___ ASSOCIATES N !" ula'E OMANANENNASKA I2a1) - REVISIONS .........---.—_.... 'u'.:`.rsn ..v":,:m ceived 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 Slates,and any United States territories and possessions.However,the tern"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. http://www.whitehouse.gov/omb/circulars_a122_2004/ 8/17/2011 of a cost grouping directly to the function benefited,the allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an-engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. • • http://www.whitehouse.gov/omb/circulars a122_2004/ 8/17/2011 2011 Board of Directors-Habitat for Humanity of Omaha Lisa Lackovic — Marketing Director, Watkins Concrete Vice-Chairman Jason Lauritsen — VP Human Resources, Union Bank &Trust Vice-Chairman Mike Klauer —Analyst, McCarthy Capital Treasurer Travis Tyler— Partner/Attorney, Fraser Stryker Secretary John Armknecht— Architect, Stanley J How Architects Todd Clevenger — Senior Vice President, Omaha State Bank Jonathan Davidson — Senior Vice President, VantagePoint Dawn Dinsdale — Community Volunteer Rhonda Distefano — Senior Vice President, Weitz Company Ron Duce — Vice President, Kiewit Building Group Winsley Durand — Director of Minority Economic Development, Omaha Chamber Deanne Fairfield — Community Volunteer Kevin Fustos - Budgeting &Administrative Coordinator/Omaha Public Power District John Heck— Sr. VP, Scoular Company Tom Hoarty — Partner/Attorney, Byam & Hoarty Fr. Tom O'Dell — Pastor, All Saints Church Randy Parks — VP of Retail, Goodwill Industries Lawrence Pete — Vice President, Centennial Bank Nancy Pridal — VP, Lamp Rynearson Kathy Strawhecker— Community Volunteer Dee Sylvis — Supervisor, Cargill Terry Thompson — Branch Manager, Centris Federal Credit Union Randy Wiese — CFO, CSG Systems Advisory Council John Bunch — President, TD Ameritrade Retail Tim Daugherty - Executive Director, The Daugherty Foundation Kirk Kellner— President, Wells Fargo Bank Nebraska Rodrigo Lopez — President, AmeriSphere Jodie Mackintosh — Owner, American Title Rick Russell — Owner, Millard Lumber John Schembari — Partner, Kutak Rock John Scott— President, Scott Foundation Lyn Ziegenbein — Executive Director, Peter Kiewit Foundation cy C, He sath,President • MMU262]04.] 5 lure to take any action, as a director of the corporation except liability for(a)receipt of a financial benefit to.which such director is not entitled,(b) an intentional infliction of harm on the corporation, (c) a violation of Section 21-1989 of the Nebraska Nonprofit Corporation Act, or (d) an intentional violation of criminal law. The foregoing provisions of this Article X shall be MMti262104.1 4 a reasonable time in the manner provided in these Amended and restated Articles of Incorporation, the Court of Douglas County shall, upon application of one or more persons having a real interest in the corporation or its MML262104.1 3 l subawards at all tiers, (including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreements) and that all subrecipients shall certify and disclose accordingly. 22 funds and interest in any account hereunder shall become the property of the City and shall be returned to the City. 21 (MFI) (Exhibit"C"). 5 at will be located in Census Tract 53. 4 Cedar Construction $250.00 EACH $2,500.00 MFT Construction $200.00 EACH _ $2,000.00 L. G. Roloff Construction Company,Inc. $96.16 EACH $961.60 Vincentini Plumbing $250.00 EACH $2,500.00 • Page 8 of 9, 7/15/2011 8:11:36 AM, Bid Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD 8:11:36 AM, Bid Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD The Special Sewer Connection fee shall be collected by the 6 • nts. Prior to final signature by the City of this Agreement, Subdivider will provide City with an irrevocable letter of credit issued by a reputable financial institution in an amount no less than Subdivider's required contribution. City and Subdivider may agree to other financial assurance in their sole discretion. In the event that Subdivider fails to maintain such financial assurance or defaults in its obligation to make the financial contribution, City shall have the right to suspend processing and approval of building permits for the Area to be Developed until such default is cured. 4 lled until such time as they will not be negatively 2 ipril' g tQQ 1 q 1 a l [z 4x m5-x P ag4ghO#0§ ggie gE } 3i ,?m Y +;i riri yr; liiea _444 .- :4 - I z o p ,�C R ,B8 '6 Bf A, REE Qg ` F I� 9 i 7 A" i i' �1 1 - d h SI Or R fRf Rdag§'d .,X�� "45g iirp Ro n , W EFpp eE hid; _ $�.�_Z. °�- m p'g.b tSy�itJ daR F L �:. R '' FSic $ 4Ba� 11191aa : . 111 1 DIN H� 5ex.x2 i i O � ,p 3a � ggS �p�m� � 'f`./+ $ $ii' Sa4S�F3t?g£ al�9 1 Will ! 'so A hi i R 4 i PPiI i FOOT.PLAT w' km�eoom,o H PIP-� O�OLSSON A -- 1 f STERLING RIDGE _..._.___ ASSOCIATES N !" ula'E OMANANENNASKA I2a1) - REVISIONS .........---.—_.... 'u'.:`.rsn ..v":,:m ceived 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 Slates,and any United States territories and possessions.However,the tern"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. http://www.whitehouse.gov/omb/circulars_a122_2004/ 8/17/2011 of a cost grouping directly to the function benefited,the allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an-engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. • • http://www.whitehouse.gov/omb/circulars a122_2004/ 8/17/2011 CERTIFICATE OF RESOLUTION OF THE BOARD OF DIRECTORS OF HABITAT FOR HUMANITY OF OMAHA,INC. The undersigned hereby certify that the following is a true and correct copy of a resolution duly adopted by the Board of Directors on July 27,2009,which resolution remains in full force and effect without modification and does not contravene or conflict with the Bylaws, Articles of Incorporation,or any contractual undertaking of the corporation. :. RESOLVED,that the Amended and Restated Bylaws of Habitat for Humanity of Omaha, Inc. attached hereto as Exhibit A, incorporating all previously adopted amendments, is hereby approved. Dated this 276' day of July,2009. ram'- 1 (Ie enthal eretary of Habitat for Humanity of Omaha,Inc. I,Steve Lindsay,hereby certify that I am the duly elected,qualified,and acting Chairperson of the Board of Directors of Habitat for Humanity of Omaha, Inc.,that Jon Blumenthal is the duly elected,qualified,and acting Secretary of the corporation,and that the signature of Jon Blumenthal, appearing above his name is the genuine signature of such person. Stev indsay Chairperson of Habitat for Humanity of Omaha, Inc. Randy Wiese — CFO, CSG Systems Advisory Council John Bunch — President, TD Ameritrade Retail Tim Daugherty - Executive Director, The Daugherty Foundation Kirk Kellner— President, Wells Fargo Bank Nebraska Rodrigo Lopez — President, AmeriSphere Jodie Mackintosh — Owner, American Title Rick Russell — Owner, Millard Lumber John Schembari — Partner, Kutak Rock John Scott— President, Scott Foundation Lyn Ziegenbein — Executive Director, Peter Kiewit Foundation cy C, He sath,President • MMU262]04.] 5 lure to take any action, as a director of the corporation except liability for(a)receipt of a financial benefit to.which such director is not entitled,(b) an intentional infliction of harm on the corporation, (c) a violation of Section 21-1989 of the Nebraska Nonprofit Corporation Act, or (d) an intentional violation of criminal law. The foregoing provisions of this Article X shall be MMti262104.1 4 a reasonable time in the manner provided in these Amended and restated Articles of Incorporation, the Court of Douglas County shall, upon application of one or more persons having a real interest in the corporation or its MML262104.1 3 l subawards at all tiers, (including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreements) and that all subrecipients shall certify and disclose accordingly. 22 funds and interest in any account hereunder shall become the property of the City and shall be returned to the City. 21 (MFI) (Exhibit"C"). 5 at will be located in Census Tract 53. 4 Cedar Construction $250.00 EACH $2,500.00 MFT Construction $200.00 EACH _ $2,000.00 L. G. Roloff Construction Company,Inc. $96.16 EACH $961.60 Vincentini Plumbing $250.00 EACH $2,500.00 • Page 8 of 9, 7/15/2011 8:11:36 AM, Bid Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD 8:11:36 AM, Bid Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD The Special Sewer Connection fee shall be collected by the 6 • nts. Prior to final signature by the City of this Agreement, Subdivider will provide City with an irrevocable letter of credit issued by a reputable financial institution in an amount no less than Subdivider's required contribution. City and Subdivider may agree to other financial assurance in their sole discretion. In the event that Subdivider fails to maintain such financial assurance or defaults in its obligation to make the financial contribution, City shall have the right to suspend processing and approval of building permits for the Area to be Developed until such default is cured. 4 lled until such time as they will not be negatively 2 ipril' g tQQ 1 q 1 a l [z 4x m5-x P ag4ghO#0§ ggie gE } 3i ,?m Y +;i riri yr; liiea _444 .- :4 - I z o p ,�C R ,B8 '6 Bf A, REE Qg ` F I� 9 i 7 A" i i' �1 1 - d h SI Or R fRf Rdag§'d .,X�� "45g iirp Ro n , W EFpp eE hid; _ $�.�_Z. °�- m p'g.b tSy�itJ daR F L �:. R '' FSic $ 4Ba� 11191aa : . 111 1 DIN H� 5ex.x2 i i O � ,p 3a � ggS �p�m� � 'f`./+ $ $ii' Sa4S�F3t?g£ al�9 1 Will ! 'so A hi i R 4 i PPiI i FOOT.PLAT w' km�eoom,o H PIP-� O�OLSSON A -- 1 f STERLING RIDGE _..._.___ ASSOCIATES N !" ula'E OMANANENNASKA I2a1) - REVISIONS .........---.—_.... 'u'.:`.rsn ..v":,:m ceived 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 Slates,and any United States territories and possessions.However,the tern"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. http://www.whitehouse.gov/omb/circulars_a122_2004/ 8/17/2011 of a cost grouping directly to the function benefited,the allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an-engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. • • http://www.whitehouse.gov/omb/circulars a122_2004/ 8/17/2011 EXHIBIT A AMENDED AND RESTATED BYLAWS OF HABITAT FOR HUMANITY OF OMAHA, INC. Mission Statement: Building homes and building lives through the partnership of our community's spiritual and material resources. ARTICLE I. BOARD OF DIRECTORS Section 1. General Powers. The affairs of the corporation shall be managed under the direction of its Board of Directors. Section 2. Number,Election, Tenure, and Qualifications. (a) In no event shall the corporation have less than twelve(12)nor more than twenty-five (25)Directors. (b) Directors shall be elected by the Board of Directors at each annual meeting of the Board of Directors by majority vote. At such meeting, the Board of Directors may consider recommendations for new Directors made by the Nomination Committee. Notwithstanding the foregoing,one(1)of the Directors shall at all times be the President of the Friends Board of Habitat for Humanity of Omaha,Inc. for as long as he or she holds such office. (c) Each Director(except for the President of the Friends Board) shall serve a two(2) year term,commencing on January 1st of the year following the election. Despite the expiration of the term of office of a Director, he or she shall continue to serve until the election of his or her successor. Directors may be elected for successive terms but shall not serve more than three (3) consecutive terms.Notwithstanding the foregoing,in the event the Chairperson of the Board serves in that capacity during his or her sixth (011) year on the Board, then he or she shall serve for one additional year on the Board thereafter. (d) Directors must be individuals but need not be residents of Nebraska. Section 3. Resignation.A Director may resign at any time by delivering written notice of his or her resignation to the Board of Directors or to the President or Secretary. The resignation of a Director is effective when the notice is effective under the Nebraska Nonprofit Corporation Act(the "Act") unless the notice specifies a later effective date. If a resignation is made effective at a later date, the Board of Directors may fill the pending vacancy before the effective date if the Board of Directors provides that the successor Director does not take office until the effective date. 1 glas County shall, upon application of one or more persons having a real interest in the corporation or its MML262104.1 3 l subawards at all tiers, (including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreements) and that all subrecipients shall certify and disclose accordingly. 22 funds and interest in any account hereunder shall become the property of the City and shall be returned to the City. 21 (MFI) (Exhibit"C"). 5 at will be located in Census Tract 53. 4 Cedar Construction $250.00 EACH $2,500.00 MFT Construction $200.00 EACH _ $2,000.00 L. G. Roloff Construction Company,Inc. $96.16 EACH $961.60 Vincentini Plumbing $250.00 EACH $2,500.00 • Page 8 of 9, 7/15/2011 8:11:36 AM, Bid Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD 8:11:36 AM, Bid Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD Tabulation, Generated by: admin for project OPW 52145 SSD, ST, PD The Special Sewer Connection fee shall be collected by the 6 • nts. Prior to final signature by the City of this Agreement, Subdivider will provide City with an irrevocable letter of credit issued by a reputable financial institution in an amount no less than Subdivider's required contribution. City and Subdivider may agree to other financial assurance in their sole discretion. In the event that Subdivider fails to maintain such financial assurance or defaults in its obligation to make the financial contribution, City shall have the right to suspend processing and approval of building permits for the Area to be Developed until such default is cured. 4 lled until such time as they will not be negatively 2 ipril' g tQQ 1 q 1 a l [z 4x m5-x P ag4ghO#0§ ggie gE } 3i ,?m Y +;i riri yr; liiea _444 .- :4 - I z o p ,�C R ,B8 '6 Bf A, REE Qg ` F I� 9 i 7 A" i i' �1 1 - d h SI Or R fRf Rdag§'d .,X�� "45g iirp Ro n , W EFpp eE hid; _ $�.�_Z. °�- m p'g.b tSy�itJ daR F L �:. R '' FSic $ 4Ba� 11191aa : . 111 1 DIN H� 5ex.x2 i i O � ,p 3a � ggS �p�m� � 'f`./+ $ $ii' Sa4S�F3t?g£ al�9 1 Will ! 'so A hi i R 4 i PPiI i FOOT.PLAT w' km�eoom,o H PIP-� O�OLSSON A -- 1 f STERLING RIDGE _..._.___ ASSOCIATES N !" ula'E OMANANENNASKA I2a1) - REVISIONS .........---.—_.... 'u'.:`.rsn ..v":,:m ceived 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 Slates,and any United States territories and possessions.However,the tern"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. http://www.whitehouse.gov/omb/circulars_a122_2004/ 8/17/2011 of a cost grouping directly to the function benefited,the allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an-engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. • • http://www.whitehouse.gov/omb/circulars a122_2004/ 8/17/2011 Section 4. Removal. A Director may be removed from office without cause by the vote of two-thirds of the Directors then in office, Section 5. Vacancies.If a vacancy occurs on the Board of Directors,the Board of Directors may fill the vacancy by majority vote. If the Directors remaining in office constitute less than a quorum of the Board of Directors,such remaining Directors may fill the vacancy by the affirmative vote of a majority of all the Directors remaining in office. The term of a Director elected to fill a vacancy expires at the end of the unexpired term that such Director is filling. Section 6. Annual Meeting. An annual meeting of the Board of Directors shall be held between November 1st and December 15t of each year at such time and place as may be determined by the Board of Directors for the purposes of electing officers and Directors of the corporation and transacting such other business as properly may come before the meeting. If the election of Directors is not held on the day designated in this bylaw for any annual meeting of Directors, or at any adjournment of such meeting, then the Board of Directors shall cause such election to be held as soon as practicable at a special meeting of the Board of Directors. Section 7. Regular Meetings. The Board of Directors shall hold at least four (4) regular meetings annually as determined by the Board of Directors.The Board of Directors may provide,by resolution, the time and place for the holding of such meetings without notice other than such resolution. Section 8. Special Meetings. Special meetings of the Board of Directors may be called by the Chairperson of the Board,the President,or a majority of the Directors.The person or persons calling a special meeting of the Board of Directors shall designate the place for such special meeting.If no such designation is made,then the place for the special meeting shall be the registered office of the corporation in Nebraska. Section 9. Notice of Meeting; Waiver.Notice of the date,time,and place of an annual or a special meeting of the Board of Directors shall be given to each Director by or at the direction of the person or persons calling such annual or special meeting at least two(2)days prior to such annual or special meeting. Notice of an annual or special meeting may be communicated in any manner permitted by the Act(including,without limitation,electronic mail);however,if mailed,notice shall be given at least five(5) days prior to such annual or special meeting.Notice shall be effective as provided in the Act.A Director may waive notice of any meeting,either before or after such meeting, or any other notice required by the Act or these bylaws;such waiver shall be in writing,signed by the Director entitled to the notice,and filed with the minutes of the meeting or other corporate records. The attendance of a Director at or the participation of a Director in a meeting waives any required notice of such meeting unless the Director, upon arriving at the meeting or prior to the vote on a matter not noticed in conformity with the Act or these bylaws,objects to lack of notice and does not thereafter vote for or assent to the action to which objection is made. Neither the business to be transacted at, nor the purpose of, any meeting of the Board of Directors need be specified in the notice or waiver of notice of such meeting. 2 Generated by: admin for project OPW 52145 SSD, ST, PD The Special Sewer Connection fee shall be collected by the 6 • nts. Prior to final signature by the City of this Agreement, Subdivider will provide City with an irrevocable letter of credit issued by a reputable financial institution in an amount no less than Subdivider's required contribution. City and Subdivider may agree to other financial assurance in their sole discretion. In the event that Subdivider fails to maintain such financial assurance or defaults in its obligation to make the financial contribution, City shall have the right to suspend processing and approval of building permits for the Area to be Developed until such default is cured. 4 lled until such time as they will not be negatively 2 ipril' g tQQ 1 q 1 a l [z 4x m5-x P ag4ghO#0§ ggie gE } 3i ,?m Y +;i riri yr; liiea _444 .- :4 - I z o p ,�C R ,B8 '6 Bf A, REE Qg ` F I� 9 i 7 A" i i' �1 1 - d h SI Or R fRf Rdag§'d .,X�� "45g iirp Ro n , W EFpp eE hid; _ $�.�_Z. °�- m p'g.b tSy�itJ daR F L �:. R '' FSic $ 4Ba� 11191aa : . 111 1 DIN H� 5ex.x2 i i O � ,p 3a � ggS �p�m� � 'f`./+ $ $ii' Sa4S�F3t?g£ al�9 1 Will ! 'so A hi i R 4 i PPiI i FOOT.PLAT w' km�eoom,o H PIP-� O�OLSSON A -- 1 f STERLING RIDGE _..._.___ ASSOCIATES N !" ula'E OMANANENNASKA I2a1) - REVISIONS .........---.—_.... 'u'.:`.rsn ..v":,:m ceived 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 Slates,and any United States territories and possessions.However,the tern"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. http://www.whitehouse.gov/omb/circulars_a122_2004/ 8/17/2011 of a cost grouping directly to the function benefited,the allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an-engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. • • http://www.whitehouse.gov/omb/circulars a122_2004/ 8/17/2011 Section 10. Quorum. A majority of the Directors in office immediately before a meeting begins shall constitute a quorum for the transaction of business at any meeting of the Board of Directors.If less than such majority is present at a meeting,then a majority of the Directors present may adjourn the meeting from time to time without further notice until a quorum is present. Section 11. Manner of Acting. If a quorum is present when a vote is taken, then the affirmative vote of a majority of the Directors present at a meeting of the Board of Directors shall be the act of the Board of Directors, except as otherwise specifically provided in these bylaws. Section 12. Attendance by Means of Communication. Members of the Board of Directors may participate in a meeting of the Board of Directors or conduct the meeting through the use of any means of communication by which all Directors participating in the meeting may simultaneously hear each other during the meeting.A Director participating in a meeting of the Board of Directors by such means is deemed to be present in person at such meeting. Section 13.Informal Action by Directors. Any action required or permitted by the Act to be taken at any meeting of the Board of Directors may be taken without a meeting if the action is taken by all members of the Board of Directors. The action must be evidenced by one or more written consents describing the action taken,signed by each Director, and included in the minutes filed with the corporate records reflecting the action taken.Action taken under this bylaw is effective when the last Director signs the consent unless the consent specifies a different effective time. A consent signed under this bylaw has the effect of a meeting vote and may be described as such in any document. Section 14. No Loans or Guaranties.The corporation shall not lend money to or guaranty the obligations of any Director of the corporation. Section 15. Compensation. The Board of Directors shall not permit compensation of Directors for their services as such. ARTICLE II. COMMITTEES Section 1. Board Committees in General. (a) Committees of the corporation shall be standing or special. Standing committees shall be the Executive Committee, the Finance Committee, the Personnel Committee, the Nominating Committee and the Development Committee, and such other standing committees as may be authorized by the Board of Directors. Unless otherwise specifically provided in these bylaws,the Chairperson,with the approval of the Board of Directors,shall appoint all members of the standing and special committees. (b) Unless otherwise specifically provided in these bylaws, the term of service of members on all committees shall be until the end of the current calendar year of appointment. The 3 rds. The attendance of a Director at or the participation of a Director in a meeting waives any required notice of such meeting unless the Director, upon arriving at the meeting or prior to the vote on a matter not noticed in conformity with the Act or these bylaws,objects to lack of notice and does not thereafter vote for or assent to the action to which objection is made. Neither the business to be transacted at, nor the purpose of, any meeting of the Board of Directors need be specified in the notice or waiver of notice of such meeting. 2 Generated by: admin for project OPW 52145 SSD, ST, PD The Special Sewer Connection fee shall be collected by the 6 • nts. Prior to final signature by the City of this Agreement, Subdivider will provide City with an irrevocable letter of credit issued by a reputable financial institution in an amount no less than Subdivider's required contribution. City and Subdivider may agree to other financial assurance in their sole discretion. In the event that Subdivider fails to maintain such financial assurance or defaults in its obligation to make the financial contribution, City shall have the right to suspend processing and approval of building permits for the Area to be Developed until such default is cured. 4 lled until such time as they will not be negatively 2 ipril' g tQQ 1 q 1 a l [z 4x m5-x P ag4ghO#0§ ggie gE } 3i ,?m Y +;i riri yr; liiea _444 .- :4 - I z o p ,�C R ,B8 '6 Bf A, REE Qg ` F I� 9 i 7 A" i i' �1 1 - d h SI Or R fRf Rdag§'d .,X�� "45g iirp Ro n , W EFpp eE hid; _ $�.�_Z. °�- m p'g.b tSy�itJ daR F L �:. R '' FSic $ 4Ba� 11191aa : . 111 1 DIN H� 5ex.x2 i i O � ,p 3a � ggS �p�m� � 'f`./+ $ $ii' Sa4S�F3t?g£ al�9 1 Will ! 'so A hi i R 4 i PPiI i FOOT.PLAT w' km�eoom,o H PIP-� O�OLSSON A -- 1 f STERLING RIDGE _..._.___ ASSOCIATES N !" ula'E OMANANENNASKA I2a1) - REVISIONS .........---.—_.... 'u'.:`.rsn ..v":,:m ceived 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 Slates,and any United States territories and possessions.However,the tern"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. http://www.whitehouse.gov/omb/circulars_a122_2004/ 8/17/2011 of a cost grouping directly to the function benefited,the allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an-engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. • • http://www.whitehouse.gov/omb/circulars a122_2004/ 8/17/2011 chairperson of each standing committee shall be a member of the Board of Directors and other members of the committee may either be Directors or other persons appointed by the Chairperson, with approval of the Board of Directors. Unless otherwise specifically provided in these bylaws, committee Chairpersons shall serve until the end of the current calendar year of appointment. At the request of the Chairperson of the Board, the chairperson of a committee shall attend the next Executive Committee meeting to provide a report on the activities of such committee. (c) To the extent specified or authorized by the Board of Directors or in these bylaws, each committee of the Board of Directors may exercise the authority of the Board of Directors. A committee of the Board of Directors may not,however: (a)authorize distributions; (b)approve or recommend dissolution, merger or the sale, pledge or transfer of all or substantially all of the corporation's assets;(c)elect,appoint or remove directors or fill vacancies on the Board of Directors or on any committee of the Board of Directors; or (d) adopt, amend or repeal the articles of incorporation or any bylaws. The Board of Directors shall have the following committees of the Board of Directors,in addition to any other committees,which the Board of Directors may hereafter create: Section 2. Executive Committee. The Executive Committee shall consist of the Chairperson,Vice Chairperson,Secretary and Treasurer of the Board of Directors.The President of the corporation shall also serve on the Executive Committee as an ex officio member.Members of the Executive Committee shall serve in such capacity until the next annual meeting of the Board of Directors.The Chairperson of the Board shall serve as the chairperson of the Executive Committee and shall preside at all of its meetings.Except to the extent prohibited or limited by this Section 6.1 or by resolution of the Board of Directors,the Executive Committee may exercise the authority of the Board of Directors at such times as the Board of Directors is not in session. Section 3. Finance Committee.The Finance Committee shall consist of at least two(2) members, all of whom shall serve in such capacity until the next annual meeting of the Board of Directors.The members of the Finance Committee shall elect one of its members(recognizing that such member shall be a member of the Board)to serve as the chairperson of the Finance Committee and the chairperson shall preside at all of its meetings. The Finance Committee shall(i)prepare an annual revenue and expense budget for submission to the full Board of Directors; (ii)work closely with the Development Committee to coordinate development of the resources needed to meet the revenue goals of the budget;(iii)monitor the implementation of the budget;and(iv)when necessary, make recommendations to the Board of Directors regarding adjustments to the budget. Section 4. Personnel Committee.The Personnel Committee shall consist of two(2)or more members,all of whom shall serve in such capacity until the next annual meeting of the Board of Directors.The members of the Personnel Committee shall elect one of its members(recognizing that such member shall be a member of the Board) to serve as the chairperson for the Personnel Committee and the chairperson shall preside at all of its meetings.The Personnel Committee shall(i) review and recommend approval to the Board of Directors of the total compensation package of the corporation's President and shall also review the President's recommendations for the total compensation of other senior management personnel;.(ii)recommend objective evaluation criteria to 4 ess than Subdivider's required contribution. City and Subdivider may agree to other financial assurance in their sole discretion. In the event that Subdivider fails to maintain such financial assurance or defaults in its obligation to make the financial contribution, City shall have the right to suspend processing and approval of building permits for the Area to be Developed until such default is cured. 4 lled until such time as they will not be negatively 2 ipril' g tQQ 1 q 1 a l [z 4x m5-x P ag4ghO#0§ ggie gE } 3i ,?m Y +;i riri yr; liiea _444 .- :4 - I z o p ,�C R ,B8 '6 Bf A, REE Qg ` F I� 9 i 7 A" i i' �1 1 - d h SI Or R fRf Rdag§'d .,X�� "45g iirp Ro n , W EFpp eE hid; _ $�.�_Z. °�- m p'g.b tSy�itJ daR F L �:. R '' FSic $ 4Ba� 11191aa : . 111 1 DIN H� 5ex.x2 i i O � ,p 3a � ggS �p�m� � 'f`./+ $ $ii' Sa4S�F3t?g£ al�9 1 Will ! 'so A hi i R 4 i PPiI i FOOT.PLAT w' km�eoom,o H PIP-� O�OLSSON A -- 1 f STERLING RIDGE _..._.___ ASSOCIATES N !" ula'E OMANANENNASKA I2a1) - REVISIONS .........---.—_.... 'u'.:`.rsn ..v":,:m ceived 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 Slates,and any United States territories and possessions.However,the tern"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. http://www.whitehouse.gov/omb/circulars_a122_2004/ 8/17/2011 of a cost grouping directly to the function benefited,the allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an-engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. • • http://www.whitehouse.gov/omb/circulars a122_2004/ 8/17/2011 the Board of Directors for the President o e of the corporation and perform such evaluation on an annual basis; (iii) oversee the implementation and administration of policies and procedures relating to volunteers and employees of the corporation; and(iv) advise the President on personnel matters. Section 5. Nominating Committee. The Nominating Committee shall consist of two(2) or more members,one of which shall be the Vice-Chairperson of the Board of Directors,and all of whom shall serve in such capacity until the next annual meeting of the Board of Directors.The Vice- Chairperson of the Board of Directors shall serve as the chairperson for the Nominating Committee and the chairperson shall preside at all of its meetings. The Nominating Committee shall (i) be responsible for identifying and recruiting prospective Directors of the corporation and shall present a slate of nominees for election as Directors at the annual meeting;and(ii)present a slate of nominees for appointment as principal officers of the corporation and may make such recommendations for chairpersons of the operating committees. Section 6. Development Committee. The Development Committee shall consist of two (2)or more members,all of whom shall serve in such capacity until the next annual meeting of the Board of Directors. The members of the Development Committee shall elect one of its members (recognizing that such member shall be a member of the Board)to serve as the chairperson for the Development Committee and the chairperson shall preside at all of its meetings.The Development Committee shall be responsible for coordinating the raising of funds needed to conduct the business of the corporation. The tasks to be coordinated by the Development Committee shall include fund- raising campaigns, grant proposal writing, special fundraising events, and cultivation of major donors. Section 7. Special Committees. Special committees may be appointed by the Chairperson with the concurrence of the Board of Directors for such special tasks as circumstances warrant. Members shall be selected by the Chairperson, with approval from the Board of Directors. A special committee shall limit its activities to the accomplishment of the task for which it is appointed and shall have no power to act except as specifically conferred by action of the Board of Directors. Upon completion of the task for which appointed, such special committee shall stand discharged. Section 8. Board of Directors Oversight. Reports of committee meetings shall be submitted to the Board of Directors and actions and recommendations of committees,other than the Executive Committee,shall be subject to approval or disapproval at the next regular Board meeting. ARTICLE III. OFFICERS Section 1. Officers. The officers of the corporation shall consist of a Chairperson of the Board, a Vice Chairperson of the Board, a President, one or more Vice Presidents (the number thereof to be determined by the Board of Directors),a Secretary of the Board,and a Treasurer of the 5 ext annual meeting of the Board of Directors.The members of the Personnel Committee shall elect one of its members(recognizing that such member shall be a member of the Board) to serve as the chairperson for the Personnel Committee and the chairperson shall preside at all of its meetings.The Personnel Committee shall(i) review and recommend approval to the Board of Directors of the total compensation package of the corporation's President and shall also review the President's recommendations for the total compensation of other senior management personnel;.(ii)recommend objective evaluation criteria to 4 ess than Subdivider's required contribution. City and Subdivider may agree to other financial assurance in their sole discretion. In the event that Subdivider fails to maintain such financial assurance or defaults in its obligation to make the financial contribution, City shall have the right to suspend processing and approval of building permits for the Area to be Developed until such default is cured. 4 lled until such time as they will not be negatively 2 ipril' g tQQ 1 q 1 a l [z 4x m5-x P ag4ghO#0§ ggie gE } 3i ,?m Y +;i riri yr; liiea _444 .- :4 - I z o p ,�C R ,B8 '6 Bf A, REE Qg ` F I� 9 i 7 A" i i' �1 1 - d h SI Or R fRf Rdag§'d .,X�� "45g iirp Ro n , W EFpp eE hid; _ $�.�_Z. °�- m p'g.b tSy�itJ daR F L �:. R '' FSic $ 4Ba� 11191aa : . 111 1 DIN H� 5ex.x2 i i O � ,p 3a � ggS �p�m� � 'f`./+ $ $ii' Sa4S�F3t?g£ al�9 1 Will ! 'so A hi i R 4 i PPiI i FOOT.PLAT w' km�eoom,o H PIP-� O�OLSSON A -- 1 f STERLING RIDGE _..._.___ ASSOCIATES N !" ula'E OMANANENNASKA I2a1) - REVISIONS .........---.—_.... 'u'.:`.rsn ..v":,:m ceived 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 Slates,and any United States territories and possessions.However,the tern"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. http://www.whitehouse.gov/omb/circulars_a122_2004/ 8/17/2011 of a cost grouping directly to the function benefited,the allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an-engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. • • http://www.whitehouse.gov/omb/circulars a122_2004/ 8/17/2011 Board. The Board of Directors also may appoint such other officers and assistant officers as the Board of Directors may deem necessary.No more than one(1)of the six(6)principal offices may be held by the same person.The Chairperson of the Board and Vice Chairperson of the Board shall be appointed from among the members of the Board of Directors and shall have such duties as may be assigned to him or her from time to time by the Board of Directors. Section 2. Appointment and Term of Office. The Board of Directors shall appoint the required officers of the corporation at the annual meeting of the Board of Directors. If the appointment of such officers is not made at such meeting,then such appointment shall be made as soon thereafter as may be convenient. The Board of Directors may appoint other officers and assistant officers at any time. Each officer shall hold office until the next annual meeting of the Board of Directors and until his or her successor shall have been appointed and qualified or until his or her earlier resignation or removal. Section 3. Removal. The Board of Directors may remove any officer of the corporation at any time with or without cause,but such removal shall not affect the officer's contract rights,if any, with the corporation. Section 4. Resignation. An officer may resign at any time by delivering notice of his or her resignation to the corporation.An officer's resignation shall be effective when the notice is effective under the Act unless the notice specifies a future effective date. If an officer's resignation is made effective at a future date and the corporation accepts the future effective date, then the Board of Directors may fill the pending vacancy before such effective date if the Board of Directors provides that the successor shall not take office until such effective date. An officer's resignation shall not affect the corporation's contract rights, if any,with the officer. Section 5. Vacancies. A vacancy in an office for any reason may be filled by the Board of Directors for the unexpired portion of the term of such office. Section 6. Chairperson of the Board. Unless otherwise provided by the Board of Directors, the Chairperson of the Board shall generally have all powers and perform all duties incident to that position.The Chairperson of the Board shall,when present,preside at all meetings of the Board of Directors.The Chairperson of the Board may sign any document or instrument which the Board of Directors has authorized to be executed, unless such action has been expressly delegated by the Board of Directors or these bylaws to some other officer or agent of the corporation or is required by law to be done otherwise. The Chairperson of the Board shall have such other powers and perform such other duties as the Board of Directors may assign to him or her from time to time. Unless otherwise provided by the Board of Directors, whenever the President is unable to serve or the position of President is vacant,the Chairperson of the Board also may perform all duties and exercise all powers of the President. Section 7. Vice Chairperson of the Board. Unless otherwise provided by the Board of Directors,the Vice Chairperson of the Board shall generally have all powers and perform all duties incident to that position. The Vice Chairperson of the Board shall, when present, preside at all 6 shall(i) review and recommend approval to the Board of Directors of the total compensation package of the corporation's President and shall also review the President's recommendations for the total compensation of other senior management personnel;.(ii)recommend objective evaluation criteria to 4 ess than Subdivider's required contribution. City and Subdivider may agree to other financial assurance in their sole discretion. In the event that Subdivider fails to maintain such financial assurance or defaults in its obligation to make the financial contribution, City shall have the right to suspend processing and approval of building permits for the Area to be Developed until such default is cured. 4 lled until such time as they will not be negatively 2 ipril' g tQQ 1 q 1 a l [z 4x m5-x P ag4ghO#0§ ggie gE } 3i ,?m Y +;i riri yr; liiea _444 .- :4 - I z o p ,�C R ,B8 '6 Bf A, REE Qg ` F I� 9 i 7 A" i i' �1 1 - d h SI Or R fRf Rdag§'d .,X�� "45g iirp Ro n , W EFpp eE hid; _ $�.�_Z. °�- m p'g.b tSy�itJ daR F L �:. R '' FSic $ 4Ba� 11191aa : . 111 1 DIN H� 5ex.x2 i i O � ,p 3a � ggS �p�m� � 'f`./+ $ $ii' Sa4S�F3t?g£ al�9 1 Will ! 'so A hi i R 4 i PPiI i FOOT.PLAT w' km�eoom,o H PIP-� O�OLSSON A -- 1 f STERLING RIDGE _..._.___ ASSOCIATES N !" ula'E OMANANENNASKA I2a1) - REVISIONS .........---.—_.... 'u'.:`.rsn ..v":,:m ceived 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 Slates,and any United States territories and possessions.However,the tern"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. http://www.whitehouse.gov/omb/circulars_a122_2004/ 8/17/2011 of a cost grouping directly to the function benefited,the allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an-engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. • • http://www.whitehouse.gov/omb/circulars a122_2004/ 8/17/2011 meetings of the Board of Directors when the Chairperson of the Board is absent. In the absence of the Chairperson of the Board, the Vice Chairperson of the Board may sign any document or instrument which the Board of Directors has authorized to be executed,unless such action has been expressly delegated by the Board of Directors or these bylaws to some other officer or agent of the corporation or is required by law to be done otherwise.The Vice Chairperson of the Board shall have such other powers and perform such other duties as the Board of Directors may assign to him or her from time to time. Unless otherwise provided by the Board of Directors, whenever the President is unable to serve or the position of President is vacant,the Vice Chairperson of the Board also may perform all duties and exercise all powers of the President if the Chairperson of the Board is unable to do so. Section 8. President. Unless otherwise provided by the Board of Directors, the President shall be the chief executive officer of the corporation and,subject to the direction of the Board of Directors, generally shall supervise and manage the affairs of the corporation. The President may sign on behalf of the corporation any document or instrument which the Board of Directors has authorized to be executed,unless such action has been expressly delegated by the Board of Directors or by these bylaws to some other officer or agent of the corporation or is required by law to be done otherwise.The President generally shall have all powers and perform all duties incident to the office of President and shall have such other powers and perform such other duties as the Board of Directors may assign to him or her from time to time. Section 9.Vice President.A Vice President shall assist the President in the administration of the corporation's affairs with respect to such matters and with such powers and duties as the President or the Board of Directors may assign to him or her from time to time. Unless otherwise provided by the Board of Directors, whenever the President is unable to serve or the office of President is vacant,the Vice President(or, if there is more than one Vice President,then the Vice Presidents in the order designated at the time of their appointment or, in the absence of any such designation,in the order of their appointment)shall perform the duties of the President and,when so acting, shall have all powers of the President. Section 10. Secretary of the Board. The Secretary of the Board shall (a) prepare and keep minutes of meetings of the Board of Directors,(b)give or cause to be given all notices in accordance with the provisions of these bylaws or as required by law,except that notices of special meetings of Directors called by two Directors may be given by such Directors,(c)be custodian of the corporate records and the seal (if any) of the corporation, (d) authenticate records of the Corporation, (e) generally have all powers and perform all duties incident to the office of Secretary,and(f)have such other powers and perform such other duties as the President or the Board of Directors may assign to him or her from time to time. Section 11. Treasurer of the Board.If required by the Board of Directors,the Treasurer of the Board shall give a bond for the faithful discharge of his or her duties in such amount and with such sureties as the Board of Directors shall specify.The Treasurer of the Board shall have oversight over the financial affairs of the corporation,which includes(a)responsibility for all moneys and securities of the corporation,(b)receiving and giving receipts for moneys due and payable to the corporation 7 • ia to 4 ess than Subdivider's required contribution. City and Subdivider may agree to other financial assurance in their sole discretion. In the event that Subdivider fails to maintain such financial assurance or defaults in its obligation to make the financial contribution, City shall have the right to suspend processing and approval of building permits for the Area to be Developed until such default is cured. 4 lled until such time as they will not be negatively 2 ipril' g tQQ 1 q 1 a l [z 4x m5-x P ag4ghO#0§ ggie gE } 3i ,?m Y +;i riri yr; liiea _444 .- :4 - I z o p ,�C R ,B8 '6 Bf A, REE Qg ` F I� 9 i 7 A" i i' �1 1 - d h SI Or R fRf Rdag§'d .,X�� "45g iirp Ro n , W EFpp eE hid; _ $�.�_Z. °�- m p'g.b tSy�itJ daR F L �:. R '' FSic $ 4Ba� 11191aa : . 111 1 DIN H� 5ex.x2 i i O � ,p 3a � ggS �p�m� � 'f`./+ $ $ii' Sa4S�F3t?g£ al�9 1 Will ! 'so A hi i R 4 i PPiI i FOOT.PLAT w' km�eoom,o H PIP-� O�OLSSON A -- 1 f STERLING RIDGE _..._.___ ASSOCIATES N !" ula'E OMANANENNASKA I2a1) - REVISIONS .........---.—_.... 'u'.:`.rsn ..v":,:m ceived 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 Slates,and any United States territories and possessions.However,the tern"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. http://www.whitehouse.gov/omb/circulars_a122_2004/ 8/17/2011 of a cost grouping directly to the function benefited,the allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an-engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. • • http://www.whitehouse.gov/omb/circulars a122_2004/ 8/17/2011 from any source,(c)depositing all moneys of the corporation in the name of the corporation in such banks,trust companies,or other depositaries or accounts as shall be selected by or at the direction of the Board of Directors, (d) keeping or causing to be kept regular books of account for the corporation,(e)generally having all powers and perform all duties incident to the office of Treasurer, and (f) having such other powers and perform such other duties as the President or the Board of Directors may assign to him or her from time to time. Section 12. Compensation.The compensation of the President and Vice President(s)of the corporation shall be fixed from time to time by or at the direction of the Board of Directors. Such salaries shall be reasonable in light of the services actually rendered to the corporation by the respective officers. ARTICLE IV. AMENDMENTS Except as otherwise provided by law,these bylaws may be amended,in a manner consistent with the Articles of Incorporation of the corporation and applicable law, by the Board of Directors at any regular or special meeting of the Board of Directors. The corporation shall provide notice of any meeting of the Board of Directors at which an amendment of these bylaws is to be approved.Such notice shall comply with the Act and these bylaws,shall state that the purpose,or one of the purposes,of the meeting is to consider a proposed amendment of these bylaws,and shall contain or be accompanied by a copy or summary of the proposed amendment or state the general nature of the proposed amendment.To be effective,an amendment of these bylaws must be approved by a majority of the Directors in office at the time the amendment is adopted. ARTICLE V. CONFLICT OF INTEREST A conflict of interest transaction is a transaction with the corporation in which a Director has a direct or indirect interest. A Director of the corporation has an indirect interest in a transaction if: (1) Another entity in which the Director has a material interest or in which the Director is a general partner is a party to the transaction; or (2) Another entity of which the Director is a director, officer or trustee is a party to the transaction. A transaction in which a director has a conflict of interest may be approved In advance by affirmative vote of a majority of the Board of Directors,or a committee of the Board of Directors,who have no direct or indirect interest in the transaction if the material facts of the transaction and the Director's interests are disclosed or known to the Board of Directors or committee of the board and the Directors approving the transaction in good faith reasonably believe that the transaction is fair to the corporation, or as otherwise provided by the Act as amended from time to time. 8 of the corporate records and the seal (if any) of the corporation, (d) authenticate records of the Corporation, (e) generally have all powers and perform all duties incident to the office of Secretary,and(f)have such other powers and perform such other duties as the President or the Board of Directors may assign to him or her from time to time. Section 11. Treasurer of the Board.If required by the Board of Directors,the Treasurer of the Board shall give a bond for the faithful discharge of his or her duties in such amount and with such sureties as the Board of Directors shall specify.The Treasurer of the Board shall have oversight over the financial affairs of the corporation,which includes(a)responsibility for all moneys and securities of the corporation,(b)receiving and giving receipts for moneys due and payable to the corporation 7 • ia to 4 ess than Subdivider's required contribution. City and Subdivider may agree to other financial assurance in their sole discretion. In the event that Subdivider fails to maintain such financial assurance or defaults in its obligation to make the financial contribution, City shall have the right to suspend processing and approval of building permits for the Area to be Developed until such default is cured. 4 lled until such time as they will not be negatively 2 ipril' g tQQ 1 q 1 a l [z 4x m5-x P ag4ghO#0§ ggie gE } 3i ,?m Y +;i riri yr; liiea _444 .- :4 - I z o p ,�C R ,B8 '6 Bf A, REE Qg ` F I� 9 i 7 A" i i' �1 1 - d h SI Or R fRf Rdag§'d .,X�� "45g iirp Ro n , W EFpp eE hid; _ $�.�_Z. °�- m p'g.b tSy�itJ daR F L �:. R '' FSic $ 4Ba� 11191aa : . 111 1 DIN H� 5ex.x2 i i O � ,p 3a � ggS �p�m� � 'f`./+ $ $ii' Sa4S�F3t?g£ al�9 1 Will ! 'so A hi i R 4 i PPiI i FOOT.PLAT w' km�eoom,o H PIP-� O�OLSSON A -- 1 f STERLING RIDGE _..._.___ ASSOCIATES N !" ula'E OMANANENNASKA I2a1) - REVISIONS .........---.—_.... 'u'.:`.rsn ..v":,:m ceived 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 Slates,and any United States territories and possessions.However,the tern"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. http://www.whitehouse.gov/omb/circulars_a122_2004/ 8/17/2011 of a cost grouping directly to the function benefited,the allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an-engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. • • http://www.whitehouse.gov/omb/circulars a122_2004/ 8/17/2011 • • • These Amended and Restated Bylaws were approved and adopted by the Board of Directors on July 27,2009. Steve Lindsay, rperson Attest: • J -13-lunien a Seer yy„ • 9 rofit Corporation ESS: By: PttA4A444 a/M0// Name: t.c., , i mire/ II ate Amanda Brewer Date Fide: / Executive Director/President APPROVED AS TO FORM: ASSISTANT CITY AtTORNEY Date 24 a� o v, A, () = 4- 7 BCD `` .• p, ' -AD p , , p, • '-' A(• c� a `b �O``s o 2 `n a' f ' 'bO `° 7� Et) CD CD CD 0 'C AD UQ rn CD Ao En kC . CD A3 Cn 1 x Z $ - • '°0 o on. 0 0 '00 b g • _, " o o oo E 4 • flod ° - x o o . co 4. o v; b v - 0 •a Et., g o ° " �Qy cn in.5 Q, _g .--o a� .E , ,gyp, 0 0 w '' vn y 2 ,=. 4 C.) alr. y o 2 -o as8 v, O a U a) a) o as § Mur„ co o : 80 - � � b° V Q p p g c, fl ,4 4� ,4 b N iii.Z...iii , „� �" v�i ra O ,' '. ° `i' vi sp, ... ..0 w ^ O •...., 7.71 0 U b b �O c3 '4 'C erg" O ,7�' O aD0 0 44 o o cis 0.1;5 O £�o ` Cil ms U - o N \ b ill " oo gp • r, .b 0 8x ° ' .� H A N , g O i. 0 obeel >1 ° o � � a i " .. yN O• 0 i >, 0 • o cd VGQ v aHv) W a.) 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A transaction in which a director has a conflict of interest may be approved In advance by affirmative vote of a majority of the Board of Directors,or a committee of the Board of Directors,who have no direct or indirect interest in the transaction if the material facts of the transaction and the Director's interests are disclosed or known to the Board of Directors or committee of the board and the Directors approving the transaction in good faith reasonably believe that the transaction is fair to the corporation, or as otherwise provided by the Act as amended from time to time. 8 of the corporate records and the seal (if any) of the corporation, (d) authenticate records of the Corporation, (e) generally have all powers and perform all duties incident to the office of Secretary,and(f)have such other powers and perform such other duties as the President or the Board of Directors may assign to him or her from time to time. Section 11. Treasurer of the Board.If required by the Board of Directors,the Treasurer of the Board shall give a bond for the faithful discharge of his or her duties in such amount and with such sureties as the Board of Directors shall specify.The Treasurer of the Board shall have oversight over the financial affairs of the corporation,which includes(a)responsibility for all moneys and securities of the corporation,(b)receiving and giving receipts for moneys due and payable to the corporation 7 • ia to 4 ess than Subdivider's required contribution. City and Subdivider may agree to other financial assurance in their sole discretion. In the event that Subdivider fails to maintain such financial assurance or defaults in its obligation to make the financial contribution, City shall have the right to suspend processing and approval of building permits for the Area to be Developed until such default is cured. 4 lled until such time as they will not be negatively 2 ipril' g tQQ 1 q 1 a l [z 4x m5-x P ag4ghO#0§ ggie gE } 3i ,?m Y +;i riri yr; liiea _444 .- :4 - I z o p ,�C R ,B8 '6 Bf A, REE Qg ` F I� 9 i 7 A" i i' �1 1 - d h SI Or R fRf Rdag§'d .,X�� "45g iirp Ro n , W EFpp eE hid; _ $�.�_Z. °�- m p'g.b tSy�itJ daR F L �:. R '' FSic $ 4Ba� 11191aa : . 111 1 DIN H� 5ex.x2 i i O � ,p 3a � ggS �p�m� � 'f`./+ $ $ii' Sa4S�F3t?g£ al�9 1 Will ! 'so A hi i R 4 i PPiI i FOOT.PLAT w' km�eoom,o H PIP-� O�OLSSON A -- 1 f STERLING RIDGE _..._.___ ASSOCIATES N !" ula'E OMANANENNASKA I2a1) - REVISIONS .........---.—_.... 'u'.:`.rsn ..v":,:m ceived prior approval of the awarding agency.Each separate foreign trip must receive such approval.For purposes of this provision, "foreign travel"includes any travel outside Canada,Mexico,the United Slates,and any United States territories and possessions.However,the tern"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. http://www.whitehouse.gov/omb/circulars_a122_2004/ 8/17/2011 of a cost grouping directly to the function benefited,the allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an-engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. • • http://www.whitehouse.gov/omb/circulars a122_2004/ 8/17/2011 • EXHIBIT ACKNOWLEDGEMENT OF COVENANT RUNNING WITH LAND WHEREAS, on , 20 , by Resolution No. , the City Council of the City of Omaha authorized the execution of a Grant Agreement (hereafter referred to as the "Agreement") between the City of Omaha, a Municipal Corporation of the Metropolitan class in the State of Nebraska (hereafter referred to as "the City") and , wherein the City would provide a in an amount of$ to assist in the rehabilitation work of the property and improvements thereon, and legally described as: , an Addition to the City of Omaha, as surveyed, platted and recorded in Douglas County,Nebraska(commonly known as ). NOW, THEREFORE, , (hereinafter referred to as the "Owner") for himself, his successors and assigns, agrees that the restrictions and covenants in the Agreement shall be covenants running with the land, and that it, in any event and without regard to technical classification and designation, legal or otherwise, shall be binding, to the fullest extent permitted by law and equity, and enforceable by the City, its successors and assigns, against the Owner, his successors and assigns, to any part of the property that is the subject of the Agreement, or any interest therein and any party in the possession or occupancy of any part of said property. The Owner, for himself, his successors and assigns, further covenants and agrees, that without regard to whether the City or the United States is an owner of any interest in the land to which the covenants relate, the covenants running with the land shall remain in effect for ( ) years after the date of Project Close Out of the project, the period specified or referred to in Section in the Agreement, or until such date thereafter to which it may be modified by proper amendment of the Agreement, on which date such covenants may terminate. The Owner, for himself, his successors and assigns, further covenants and agrees that this property shall continue to be used as a for qualified families, as described in Section in the Agreement, for the term of this covenant. In the event of default, gross negligence or other substantial noncompliance, the outstanding amount of the loan at the time of default shall be due and payable immediately from the Owner, his successors and assigns,to the City. O OPPORTUNITY Page 1 of 2 Revised and approved 12/2/2009 indirect interest in the transaction if the material facts of the transaction and the Director's interests are disclosed or known to the Board of Directors or committee of the board and the Directors approving the transaction in good faith reasonably believe that the transaction is fair to the corporation, or as otherwise provided by the Act as amended from time to time. 8 of the corporate records and the seal (if any) of the corporation, (d) authenticate records of the Corporation, (e) generally have all powers and perform all duties incident to the office of Secretary,and(f)have such other powers and perform such other duties as the President or the Board of Directors may assign to him or her from time to time. Section 11. Treasurer of the Board.If required by the Board of Directors,the Treasurer of the Board shall give a bond for the faithful discharge of his or her duties in such amount and with such sureties as the Board of Directors shall specify.The Treasurer of the Board shall have oversight over the financial affairs of the corporation,which includes(a)responsibility for all moneys and securities of the corporation,(b)receiving and giving receipts for moneys due and payable to the corporation 7 • ia to 4 ess than Subdivider's required contribution. City and Subdivider may agree to other financial assurance in their sole discretion. In the event that Subdivider fails to maintain such financial assurance or defaults in its obligation to make the financial contribution, City shall have the right to suspend processing and approval of building permits for the Area to be Developed until such default is cured. 4 lled until such time as they will not be negatively 2 ipril' g tQQ 1 q 1 a l [z 4x m5-x P ag4ghO#0§ ggie gE } 3i ,?m Y +;i riri yr; liiea _444 .- :4 - I z o p ,�C R ,B8 '6 Bf A, REE Qg ` F I� 9 i 7 A" i i' �1 1 - d h SI Or R fRf Rdag§'d .,X�� "45g iirp Ro n , W EFpp eE hid; _ $�.�_Z. °�- m p'g.b tSy�itJ daR F L �:. R '' FSic $ 4Ba� 11191aa : . 111 1 DIN H� 5ex.x2 i i O � ,p 3a � ggS �p�m� � 'f`./+ $ $ii' Sa4S�F3t?g£ al�9 1 Will ! 'so A hi i R 4 i PPiI i FOOT.PLAT w' km�eoom,o H PIP-� O�OLSSON A -- 1 f STERLING RIDGE _..._.___ ASSOCIATES N !" ula'E OMANANENNASKA I2a1) - REVISIONS .........---.—_.... 'u'.:`.rsn ..v":,:m ceived 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 Slates,and any United States territories and possessions.However,the tern"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. http://www.whitehouse.gov/omb/circulars_a122_2004/ 8/17/2011 of a cost grouping directly to the function benefited,the allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an-engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. • • http://www.whitehouse.gov/omb/circulars a122_2004/ 8/17/2011 COVENANT PAGE 2 By: By: STATE OF NEBRASKA ) ) § COUNTY OF DOUGLAS ) On this day of , , before me, the undersigned, a Notary Public duly commissioned and qualified in and for said county, personally came , to me known to be the person(s) named in and who executed the foregoing instrument, and acknowledged that he executed the same as his voluntary act and deed for the purposes therein stated. Witness my hand and notarial seal the day and year last above written. Notary Public My Commission expires OPPORTUNITY Page 2 of 2 Revised and approved 12/2/2009 , () = 4- 7 BCD `` .• p, ' -AD p , , p, • '-' A(• c� a `b �O``s o 2 `n a' f ' 'bO `° 7� Et) CD CD CD 0 'C AD UQ rn CD Ao En kC . CD A3 Cn 1 x Z $ - >, ? co o ccaao Ts tea c > a `2 >1 >' CD O CD CIO C:) C) O CD Co C:) CD CDC E Q. o O O N N CO 00 N CD LO LO O C O co Q. O 't co co I` LO N r- CO CO Cr) N- () 0 LL_ N Ci N Cfl d• n- 00 LO 00 Ln N oO1 C= O CO O) (� C) N M CO Q.� a Ef} Ef} Ef} Ef} Ef} Eft 6H Eft Eft- Eft Eft Eft C) --' � cCr (2 a CO • I- O O O� O a) C; O O O O O O O O O O O O l 4— O O O O O O O O O O LO O LO 0 LC) LO CO CO M d) CO N CO Nr 1.- N. E) >, O C; CO M O CO - N- M 00 '� O LO a) a) E Eft - o 0 c) CO N- N.- CO 00 (.) C) O N- C y O C/ Eft ft Eft- Eft Eft- Eft N- N- r- a) cototoO O O LO U a).; J C II C a W a) C O a) E a5 C O o LOO Oa. 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C6 O E ca a) O O ' N- C)) '- N d' CO C O O) .- Cr) Co -, U Q-N- M T . - N N N N N N C") CO C") -: U a) Ef} Eft Eft Eft Eft Ef} Ef) Eft Eft ER Eft Eft C U .0 IL 00 O • EN f- ,2O Co M Ca E N CCO N- T.5 CO- U (` C/) L >, (a CO)>' i_ _a NN1 a) Q E c) _ N I- -oLL ca °- o > .a) O Q O 'E N- N CO LO CO ti CO W C. N-"' .6 •n _c E C7 L.L. Z coo W 63 ll moneys and securities of the corporation,(b)receiving and giving receipts for moneys due and payable to the corporation 7 • ia to 4 ess than Subdivider's required contribution. City and Subdivider may agree to other financial assurance in their sole discretion. In the event that Subdivider fails to maintain such financial assurance or defaults in its obligation to make the financial contribution, City shall have the right to suspend processing and approval of building permits for the Area to be Developed until such default is cured. 4 lled until such time as they will not be negatively 2 ipril' g tQQ 1 q 1 a l [z 4x m5-x P ag4ghO#0§ ggie gE } 3i ,?m Y +;i riri yr; liiea _444 .- :4 - I z o p ,�C R ,B8 '6 Bf A, REE Qg ` F I� 9 i 7 A" i i' �1 1 - d h SI Or R fRf Rdag§'d .,X�� "45g iirp Ro n , W EFpp eE hid; _ $�.�_Z. °�- m p'g.b tSy�itJ daR F L �:. R '' FSic $ 4Ba� 11191aa : . 111 1 DIN H� 5ex.x2 i i O � ,p 3a � ggS �p�m� � 'f`./+ $ $ii' Sa4S�F3t?g£ al�9 1 Will ! 'so A hi i R 4 i PPiI i FOOT.PLAT w' km�eoom,o H PIP-� O�OLSSON A -- 1 f STERLING RIDGE _..._.___ ASSOCIATES N !" ula'E OMANANENNASKA I2a1) - REVISIONS .........---.—_.... 'u'.:`.rsn ..v":,:m ceived 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 Slates,and any United States territories and possessions.However,the tern"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. http://www.whitehouse.gov/omb/circulars_a122_2004/ 8/17/2011 of a cost grouping directly to the function benefited,the allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an-engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. • • http://www.whitehouse.gov/omb/circulars a122_2004/ 8/17/2011 EXHIBIT DEFINITION OF PROGRAM INCOME "Program income" means gross income received by the Recipient or a Subrecipient directly generated from the uses of CDBG/HOME/NSP and other federal funds. When such income is generated by an activity that is only partially assisted with CDBG/HOME/NSP and other federal funds, the income shall be prorated to reflect the percentage of CDBG/HOME/NSP 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/NSP and other federal funds; (ii) Proceeds from the disposition of equipment purchased with CDBG/HOME/NSP 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/NSP 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/NSP 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/NSP and other federal funds; (vi) Proceeds from the sale of loans made with CDBG/HOME/NSP and other federal funds; (vii) Proceeds from the sale of obligations secured by loans made with CDBG/HOME/NSP 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/NSP 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/NSP and other federal assistance; funds collected through special assessments used to recover the non-CDBG/HOME/NSP and other federal portion of a public improvement; and proceeds from the disposition of real property acquired or improved with CDBG/HOME/NSP 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/NSP program funds. (3) Any program income generated by NSP funds through March 31, 2013 shall be used to construct housing units east of 72nd Street affordable to low-, moderate-, and middle-income (LMMI) households. After March 31, 2013, all program income generated by NSP funds will be limited to eligible CDBG activities, including the benefit to low- and moderate-income (LMI) (not LMMI) households during the term of this Agreement, the program income shall be returned to the City within thirty(30)days. A MOM, Revised and approved 12/3/2009 O Q O 'E N- N CO LO CO ti CO W C. N-"' .6 •n _c E C7 L.L. Z coo W 63 ll moneys and securities of the corporation,(b)receiving and giving receipts for moneys due and payable to the corporation 7 • ia to 4 ess than Subdivider's required contribution. City and Subdivider may agree to other financial assurance in their sole discretion. In the event that Subdivider fails to maintain such financial assurance or defaults in its obligation to make the financial contribution, City shall have the right to suspend processing and approval of building permits for the Area to be Developed until such default is cured. 4 lled until such time as they will not be negatively 2 ipril' g tQQ 1 q 1 a l [z 4x m5-x P ag4ghO#0§ ggie gE } 3i ,?m Y +;i riri yr; liiea _444 .- :4 - I z o p ,�C R ,B8 '6 Bf A, REE Qg ` F I� 9 i 7 A" i i' �1 1 - d h SI Or R fRf Rdag§'d .,X�� "45g iirp Ro n , W EFpp eE hid; _ $�.�_Z. °�- m p'g.b tSy�itJ daR F L �:. R '' FSic $ 4Ba� 11191aa : . 111 1 DIN H� 5ex.x2 i i O � ,p 3a � ggS �p�m� � 'f`./+ $ $ii' Sa4S�F3t?g£ al�9 1 Will ! 'so A hi i R 4 i PPiI i FOOT.PLAT w' km�eoom,o H PIP-� O�OLSSON A -- 1 f STERLING RIDGE _..._.___ ASSOCIATES N !" ula'E OMANANENNASKA I2a1) - REVISIONS .........---.—_.... 'u'.:`.rsn ..v":,:m ceived 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 Slates,and any United States territories and possessions.However,the tern"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. http://www.whitehouse.gov/omb/circulars_a122_2004/ 8/17/2011 of a cost grouping directly to the function benefited,the allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an-engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. • • http://www.whitehouse.gov/omb/circulars a122_2004/ 8/17/2011 CIRCULAR A-110 REVISED 11/19/93 As Further Amended 9/30/99 1 The White House Page 1 of 29 Oct Email Updates Contact Us Home•The Administration•Office of Management and Budget Search OMB Search r .1., Office o� �`Ianagement anal BudgetY! About OMB I3log I The.Budget I Management I Regulation&Information Policy ; Legislative Information I Join OMB I Contact OMB ' TU CIRCULAR A-no REVISED 11/19/93 As Further Amended Leadership Bios OMB Organization Chart 9/30/99 Open Government Plan • TO THE HEADS OF EXECUTIVE DEPARTMENTS AND ESTABLISHMENTS OMB News Releases RSS Feeds SUBJECT: Uniform Administrative Requirements for Grants and Agreements With Institutions of Higher Education,Hospitals,and Other Non-Profit Organizations Intellectual Property Agency Info 1.Purpose.This Circular sets forth standards for obtaining consistency and uniformity among Federal agencies in the Bulletins administration of grants to and agreements with institutions of higher education,hospitals,and other non-profit Circulars organizations. Budget State and Local 2.Authority.Circular A-110 is issued under the authority of 31 U.S.C.503(the Chief Financial Officers Act),31 Governments U.S.C.1111,41 U.S.C.405(the Office of Federal Procurement Policy Act),Reorganization Plan No.2 of 1970,and Educational and Non- E.O.11541("Prescribing the Duties of the Office of Management and Budget and the Domestic Policy Council in the Profit Institutions Executive Office of the President"). Federal Procurement Federal Financial 3.Policy.Except as provided herein,the standards set forth in this Circular are applicable to all Federal agencies.If Management any statute specifically prescribes policies or specific requirements that differ from the standards provided herein,the Federal Information provisions of the statute shall govern. Resources/Data Collection The provisions of the sections of this Circular shall be applied by Federal agencies to recipients.Recipients shall apply Other Special Purpose the provisions of this Circular to subrecipients performing substantive work under grants and agreements that are Memoranda passed through or awarded by the primary recipient,if such subrecipients are organizations described in paragraph 1. Privacy Guidance This Circular does not apply to grants,contracts,or other agreements between the Federal Government and units of Reports State or local governments covered by OMB Circular A-102,"Grants and Cooperative Agreements with State and Federal Register Local Governments,"and the Federal agencies'grants management common rule which standardized and codified the FOIA • administrative requirements Federal agencies impose on State and local grantees.In addition,subawards and No FEAR contracts to State or local governments are not covered by this Circular.However,this Circular applies to subawards OMB Locator made by State and local governments to organizations covered by this Circular.Federal agencies may apply the provisions of this Circular to commercial organizations,foreign governments,organizations under the jurisdiction of foreign governments,and international organizations. 4.Definitions.Definitions of key terms used in this Circular are contained in Section_.2 in the Attachment. 5,Required Action.The specific requirements and responsibilities of Federal agencies and institutions of higher education,hospitals,and other non-profit organizations are set forth in this Circular.Federal agencies responsible for awarding and administering grants to and other agreements with organizations described in paragraph 1 shall adopt the language in the Circular unless different provisions are required by Federal statute or are approved by OMB. 6.OMB Responsibilities.OMB will review agency regulations and implementation of this Circular,and will provide interpretations of policy requirements and assistance to insure effective and efficient implementation.Any exceptions will be subject to approval by OMB,as indicated in Section_.4 in the Attachment.Exceptions will only be made in particular cases where adequate justification is presented. 7.Information Contact.Further information concerning this Circular may be obtained by contacting the Office of Federal Financial Management,Office of Management and Budget,Washington,DC 20503,telephone(202)395- 3993. 8.Termination Review Date.This Circular will have a policy review three years from date of issuance, 9.Effective Date.The standards set forth in this Circular which affect Federal agencies will be effective 30 days after publication of the final revision in the Federal Register.Those standards which Federal agencies impose on grantees http://wwvv.whitehouse.gov/omb/circulars_a110/ 7/20/2011 FOOT.PLAT w' km�eoom,o H PIP-� O�OLSSON A -- 1 f STERLING RIDGE _..._.___ ASSOCIATES N !" ula'E OMANANENNASKA I2a1) - REVISIONS .........---.—_.... 'u'.:`.rsn ..v":,:m ceived 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 Slates,and any United States territories and possessions.However,the tern"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. http://www.whitehouse.gov/omb/circulars_a122_2004/ 8/17/2011 of a cost grouping directly to the function benefited,the allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an-engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. • • http://www.whitehouse.gov/omb/circulars a122_2004/ 8/17/2011 CIRCULAR A-1 10 Kr;V1Sk L) 11/19/93 As Further Amended 9/30/99 I 1 he White house Page G or 29 will be adopted by agencies in codified regulations within six months after publication in the Federal Register.Earlier implementation is encouraged. Attachment Grants and Agreements with Institutions of Higher Education, Hospitals,and Other Non-Profit Organizations SUBPART A-GENERAL Sec. • _.1 Purpose. .2 Definitions. .3 Effect on other issuances. .4 Deviations. .5 Suhawards. ' SUBPART B-PRE-AWARD REQUIREMENTS 10 Purpose. .11 Pre-award policies. _.12 Forms for applying for Federal assistance. .13 Debarment and suspension. .14 Special award conditions. _.15 Metric system of measurement. .16 Resource Conservation and Recovery Act. .17 Certifications and representations. SUBPART C-POST-AWARD REQUIREMENTS Financial and Program Management _.20 Purpose of financial and program management. .21 Standards for financial management systems. 22 Payment. _.23 Cost sharing or matching. .24 Program income. _.25 Revision of budget and program plans. .26 Non-Federal audits. .27 Allowable costs. _.28 Period of availability of funds. _.29 Conditional exemptions. Property Standards _.30 Purpose of property standards. .31 Insurance coverage. http://ww .whitehouse.gov/omb/ci w rculars_al 10/ 7/20/2011 bing the Duties of the Office of Management and Budget and the Domestic Policy Council in the Profit Institutions Executive Office of the President"). Federal Procurement Federal Financial 3.Policy.Except as provided herein,the standards set forth in this Circular are applicable to all Federal agencies.If Management any statute specifically prescribes policies or specific requirements that differ from the standards provided herein,the Federal Information provisions of the statute shall govern. Resources/Data Collection The provisions of the sections of this Circular shall be applied by Federal agencies to recipients.Recipients shall apply Other Special Purpose the provisions of this Circular to subrecipients performing substantive work under grants and agreements that are Memoranda passed through or awarded by the primary recipient,if such subrecipients are organizations described in paragraph 1. Privacy Guidance This Circular does not apply to grants,contracts,or other agreements between the Federal Government and units of Reports State or local governments covered by OMB Circular A-102,"Grants and Cooperative Agreements with State and Federal Register Local Governments,"and the Federal agencies'grants management common rule which standardized and codified the FOIA • administrative requirements Federal agencies impose on State and local grantees.In addition,subawards and No FEAR contracts to State or local governments are not covered by this Circular.However,this Circular applies to subawards OMB Locator made by State and local governments to organizations covered by this Circular.Federal agencies may apply the provisions of this Circular to commercial organizations,foreign governments,organizations under the jurisdiction of foreign governments,and international organizations. 4.Definitions.Definitions of key terms used in this Circular are contained in Section_.2 in the Attachment. 5,Required Action.The specific requirements and responsibilities of Federal agencies and institutions of higher education,hospitals,and other non-profit organizations are set forth in this Circular.Federal agencies responsible for awarding and administering grants to and other agreements with organizations described in paragraph 1 shall adopt the language in the Circular unless different provisions are required by Federal statute or are approved by OMB. 6.OMB Responsibilities.OMB will review agency regulations and implementation of this Circular,and will provide interpretations of policy requirements and assistance to insure effective and efficient implementation.Any exceptions will be subject to approval by OMB,as indicated in Section_.4 in the Attachment.Exceptions will only be made in particular cases where adequate justification is presented. 7.Information Contact.Further information concerning this Circular may be obtained by contacting the Office of Federal Financial Management,Office of Management and Budget,Washington,DC 20503,telephone(202)395- 3993. 8.Termination Review Date.This Circular will have a policy review three years from date of issuance, 9.Effective Date.The standards set forth in this Circular which affect Federal agencies will be effective 30 days after publication of the final revision in the Federal Register.Those standards which Federal agencies impose on grantees http://wwvv.whitehouse.gov/omb/circulars_a110/ 7/20/2011 FOOT.PLAT w' km�eoom,o H PIP-� O�OLSSON A -- 1 f STERLING RIDGE _..._.___ ASSOCIATES N !" ula'E OMANANENNASKA I2a1) - REVISIONS .........---.—_.... 'u'.:`.rsn ..v":,:m ceived 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 Slates,and any United States territories and possessions.However,the tern"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. http://www.whitehouse.gov/omb/circulars_a122_2004/ 8/17/2011 of a cost grouping directly to the function benefited,the allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an-engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. • • http://www.whitehouse.gov/omb/circulars a122_2004/ 8/17/2011 CIRCULAR A-110 REVISED 11/19/93 As Further Amended 9/30/99 I The White House Page 3 of 29 _.32 Real properly. _.33 Federally-owned and exempt property. _.34 Equipment. _.35 Supplies and other expendable property. 36 Intangible property. _.37 Properly trust relationship. Procurement Standards _.40 Purpose of procurement standards. _,41 Recipient responsibilities. .42 Codes of conduct. _,43 Competition. _.44 Procurement procedures. _,45 Cost and price analysis. .46 Procurement records. .47 Contract administration. .48 Contract provisions. Reports and Records 50 Purpose of reports and records. .51 Monitoring and reporting program performance. _,52 Financial reporting. _ .53 Retention and access requirements for records. Termination and Enforcement • _.60 Purpose of termination and enforcement. .61 Termination. .62 Enforcement. SUBPART D-AFTER-THE-AWARD REQUIREMENTS 70 Purpose. .71 Closeout procedures. _.72 Subsequent adjustments and continuing responsibilities. .73 Collection of amounts due. APPENDIX A-CONTRACT PROVISIONS SUBPART A-General .1 Purpose.This Circular establishes uniform administrative requirements for Federal grants and agreements awarded to institutions of higher education,hospitals.and other non-profit organizations.Federal awarding agencies shall not impose additional or inconsistent requirements,except as provided in Sections_.4.and_.14 or unless specifically required by Federal statute or executive order.Non-profit organizations that implement Federal programs for the States are also subject to State requirements. .2 Definitions. http://www.whitehouse.gov/omb/circulars_a110/ 7/20/2011 icable to all Federal agencies.If Management any statute specifically prescribes policies or specific requirements that differ from the standards provided herein,the Federal Information provisions of the statute shall govern. Resources/Data Collection The provisions of the sections of this Circular shall be applied by Federal agencies to recipients.Recipients shall apply Other Special Purpose the provisions of this Circular to subrecipients performing substantive work under grants and agreements that are Memoranda passed through or awarded by the primary recipient,if such subrecipients are organizations described in paragraph 1. Privacy Guidance This Circular does not apply to grants,contracts,or other agreements between the Federal Government and units of Reports State or local governments covered by OMB Circular A-102,"Grants and Cooperative Agreements with State and Federal Register Local Governments,"and the Federal agencies'grants management common rule which standardized and codified the FOIA • administrative requirements Federal agencies impose on State and local grantees.In addition,subawards and No FEAR contracts to State or local governments are not covered by this Circular.However,this Circular applies to subawards OMB Locator made by State and local governments to organizations covered by this Circular.Federal agencies may apply the provisions of this Circular to commercial organizations,foreign governments,organizations under the jurisdiction of foreign governments,and international organizations. 4.Definitions.Definitions of key terms used in this Circular are contained in Section_.2 in the Attachment. 5,Required Action.The specific requirements and responsibilities of Federal agencies and institutions of higher education,hospitals,and other non-profit organizations are set forth in this Circular.Federal agencies responsible for awarding and administering grants to and other agreements with organizations described in paragraph 1 shall adopt the language in the Circular unless different provisions are required by Federal statute or are approved by OMB. 6.OMB Responsibilities.OMB will review agency regulations and implementation of this Circular,and will provide interpretations of policy requirements and assistance to insure effective and efficient implementation.Any exceptions will be subject to approval by OMB,as indicated in Section_.4 in the Attachment.Exceptions will only be made in particular cases where adequate justification is presented. 7.Information Contact.Further information concerning this Circular may be obtained by contacting the Office of Federal Financial Management,Office of Management and Budget,Washington,DC 20503,telephone(202)395- 3993. 8.Termination Review Date.This Circular will have a policy review three years from date of issuance, 9.Effective Date.The standards set forth in this Circular which affect Federal agencies will be effective 30 days after publication of the final revision in the Federal Register.Those standards which Federal agencies impose on grantees http://wwvv.whitehouse.gov/omb/circulars_a110/ 7/20/2011 FOOT.PLAT w' km�eoom,o H PIP-� O�OLSSON A -- 1 f STERLING RIDGE _..._.___ ASSOCIATES N !" ula'E OMANANENNASKA I2a1) - REVISIONS .........---.—_.... 'u'.:`.rsn ..v":,:m ceived 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 Slates,and any United States territories and possessions.However,the tern"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. http://www.whitehouse.gov/omb/circulars_a122_2004/ 8/17/2011 of a cost grouping directly to the function benefited,the allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an-engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. • • http://www.whitehouse.gov/omb/circulars a122_2004/ 8/17/2011 CIRCULAR A-11U REVISED 11/19/93 As Further Amended 9/30/99 1 1 he White House Page 4 01 29 (a)Accrued expenditures means the charges incurred by the recipient during a given period requiring the provision of funds for:(1)goods and other tangible property received:(2)services performed by employees,contractors, subrecipients,and other payees:and,(3)other amounts becoming owed under programs for which no current services or performance is required. • (b)Accrued income means the sum of:(1)earnings during a given period from(i)services performed by the recipient,and(ii)goods and other tangible property delivered to purchasers,and(2)amounts becoming owed to the recipient for which no current services or performance is required by the recipient. (c)Acquisition cost of equipment means the net invoice price of the equipment.including the cost of modifications. attachments,accessories,or auxiliary apparatus necessary to make the property usable for the purpose for which it was acquired.Other charges,such as the cost of installation,transportation,taxes,duty or protective in-transit insurance,shall be included or excluded from the unit acquisition cost in accordance with the recipient's regular accounting practices. • (d)Advance means a payment made by Treasury check or other appropriate payment mechanism to a recipient upon its request either before outlays are made by the recipient or through the use of predetermined payment schedules. (e)Award means financial assistance that provides support or stimulation to accomplish a public purpose.Awards include grants and other agreements in the form of money or 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. (f)Cash contributions means the recipient's cash outlay,including the outlay of money contributed to the recipient by third parties. (g)Closeout means the process by which a Federal awarding agency determines that all applicable administrative actions and all required work of the award have been completed by the recipient and Federal awarding agency. (h)Contract means a procurement contract under an award or subaward,and a procurement subcontract under a recipient's or subrecipient's contract. (i)Cost sharing or matching means that portion of project or program costs not borne by the Federal Government. (j)Date of completion means the date on which all work under an award is completed or the date on the award document,or any supplement or amendment thereto,on which Federal sponsorship ends. (k)Disallowed costs means those charges to an award that the Federal awarding agency determines to be Unallowable,in accordance with the applicable Federal cost principles or other terms and conditions contained in the award. (I)Equipment means tangible nonexpendable personal property including exempt property charged directly to the award having a useful life of more than one year and an acquisition cost of$5000 or more per unit.However, consistent with recipient policy,lower limits may be established. (m)Excess property means property under the control of any Federal awarding agency that,as determined by the head thereof,is no longer required for its needs or the discharge of its responsibilities. (n)Exempt property means tangible personal property acquired in whole or in part with Federal funds,where the Federal awarding agency has statutory authority to vest title in the recipient without further obligation to the Federal Government.An example of exempt property authority is contained in the Federal Grant and Cooperative Agreement Act(31 U.S.C.6306),for property acquired under an award to conduct basic or applied research by a non-profit institution of higher education or non-profit organization whose principal purpose is conducting scientific research. • (o)Federal awarding agency means the Federal agency that provides an award to the recipient. (p)Federal funds authorized means the total amount of Federal funds obligated by the Federal Government for use by the recipient.This amount may include any authorized carryover of unobligated funds from prior funding periods when permitted by agency regulations or agency implementing instructions. (q)Federal share of real property,equipment,or supplies means that percentage of the property's acquisition costs and.any improvement expenditures paid with Federal funds. (r)Funding period means the period of time when Federal funding is available for obligation by the recipient. (s)Intangible property and debt instruments means,but is not limited to,trademarks,copyrights,patents and patent applications and such property as loans,notes and other debt instruments,lease agreements,stock and other instruments of property ownership,whether considered tangible or intangible. http://www.whitehouse.gov/omb/circulars_al 10/ 7/20/2011 A I2a1) - REVISIONS .........---.—_.... 'u'.:`.rsn ..v":,:m ceived 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 Slates,and any United States territories and possessions.However,the tern"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. http://www.whitehouse.gov/omb/circulars_a122_2004/ 8/17/2011 of a cost grouping directly to the function benefited,the allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an-engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. • • http://www.whitehouse.gov/omb/circulars a122_2004/ 8/17/2011 CIRCULAR A-110 REVISED 11/19/93 As Further Amended 9/30/99 I The White House Page 5 of 29 (t)Obligations means the amounts of orders placed,contracts and grants awarded,services received and similar transactions during a given period that require payment by the recipient during the same or a future period. (u)Outlays or expenditures means charges made to the project or program.They may be reported on a cash or accrual basis.For reports prepared on a cash basis.outlays are the sum of cash disbursements for direct charges for • goods and services,the amount of indirect expense charged,the value of third party in-kind contributions applied and • the amount of cash advances and payments made to subrecipients.For reports prepared on an accrual basis,outlays are the sum of cash disbursements for direct charges for goods and services,the amount of indirect expense incurred, the value of in-kind contributions applied,and the net increase(or decrease)in the amounts owed by the recipient for goods and other property received,for services performed by employees,contractors,subrecipients and other payees and other amounts becoming owed under programs for which no current services or performance are required. (v)Personal property means property of any kind except real property.It may be tangible,having physical existence, or intangible,having no physical existence,such as copyrights,patents,or securities. (w)Prior approval means written approval by an authorized official evidencing prior consent. (x)Program income means gross income earned by the recipient that is directly generated by a supported activity or earned as a result of the award(see exclusions in paragraphs .24(e)and(h)).Program income includes,but is not limited to,income from fees for services performed,the use or rental of real or personal property acquired under federally-funded projects,the sale of commodities or items fabricated under an award,license fees and royalties on patents and copyrights,and interest on loans made with award funds.Interest earned on advances of Federal funds is not program income.Except as otherwise provided in Federal awarding agency regulations or the terms and conditions of the award,program income does not include the receipt of principal on loans,rebates,credits.discounts, etc.,or interest earned on any of them. (y)Project costs means all allowable costs,as set forth in the applicable Federal cost principles,incurred by a recipient and the value of the contributions made by third parties in accomplishing the objectives of the award during the project period. • (z)Project period means the period established in the award document during which Federal sponsorship begins and ends. (aa)Property means,unless otherwise stated,real property,equipment.intangible property and debt instruments. (bb)Real property means land,including land improvements,structures and appurtenances thereto,but excludes movable machinery and equipment. (cc)Recipient means an organization receiving financial assistance directly 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 not include government-owned contractor-operated facilities or research centers providing continued support for mission-oriented,large-scale programs that are government-owned or controlled,or are designated as federally-funded research and development centers. (dd)Research and development means all research activities,both basic and applied,and all development activities that are supported at universities,colleges,and other non-profit institutions."Research"is defined as a systematic study directed toward fuller scientific knowledge or understanding of the subject studied."Development"is the systematic use of knowledge and understanding gained from research directed toward the production of useful materials,devices,systems,or methods,including design and development of prototypes and processes.The term research also includes activities involving the training of individuals in research techniques where such activities utilize the same facilities as other research and development activities and where such activities are not included in the instruction function. (ee)Small awards means a grant or cooperative agreement not exceeding the small purchase threshold fixed at 41 U.S.C.403(11)(currently$25,000). (ff)Subaward means an award of financial assistance in the form of money,or property in lieu of money,made under an award by a recipient to an eligible subrecipient or by a subrecipient to a lower tier subrecipient.The term includes financial assistance when provided by any legal agreement,even it 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)al the discretion of the Federal awarding agency. (hh)Supplies means all personal property excluding equipment,intangible property,and debt instruments as defined in this section,and inventions of a contractor conceived or first actually reduced to practice in the performance of work http://www.whitehouse.gov/omb/circulars_a110/ 7/20/2011 e equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an-engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. • • http://www.whitehouse.gov/omb/circulars a122_2004/ 8/17/2011 LIKLULAK A-11U Kt,vlSLlJ 11/19/9i As 1 urther Amended 9/3U/99 I the White House 1'age b of 29 • under a funding agreement("subject inventions"),as defined in 37 CFR part 401,"Rights to Inventions Made by Nonprofit Organizations and Small Business Firms Under Government Grants,Contracts,and Cooperative - Agreements." (ii)Suspension means an action by a Federal awarding agency that temporarily withdraws Federal sponsorship under 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 an agreement at any time prior to the date of completion. (kk)Third party in-kind contributions means the value of non-cash contributions provided by non-Federal third • parties.Third party in-kind contributions may be in the form of real property,equipment,supplies and other expendable property,and the value of goods and services directly benefiting and specifically identifiable to the project or program. (II)Unliquidated obligations,for financial reports prepared on a cash basis,means the amount of obligations incurred by the recipient that have not been paid.For reports prepared on an accrued expenditure basis,they represent the amount of obligations incurred by the recipient for which an outlay has not been recorded. (mm)Unobligated balance means the portion of the funds authorized by the Federal awarding agency that has not been obligated by the recipient and is determined by deducting the cumulative obligations from the cumulative funds authorized. (nn)Unrecovered indirect cost means the difference between the amount awarded and the amount which could have been awarded under the recipient's approved negotiated indirect cost rate. (oo)Working capital advance means a procedure where by funds are advanced to the recipient to cover its estimated disbursement needs for a given initial period. 3 Effect on other issuances.For awards subject to this Circular,all administrative requirements of codified . program regulations,program manuals,handbooks and other nonregulatory materials which are inconsistent with the requirements of this Circular shall be superseded,except to the extent they are required by statute,or authorized in accordance with the deviations provision in Section A. _.4 Deviations.The Office of Management and Budget(OMB)may grant exceptions for classes of grants or recipients subject to the requirements of this Circular when exceptions are not prohibited by statute.However,in the interest of maximum uniformity,exceptions from the requirements of this Circular shall be permitted only in unusual circumstances.Federal awarding agencies may apply more restrictive requirements to a class of recipients when approved by OMB.Federal awarding agencies may apply less restrictive requirements when awarding small awards, except for those requirements which are statutory.Exceptions on a case-by-case basis may also be made by Federal awarding agencies. .5 Subawards.Unless sections of this Circular specifically exclude subrecipients from coverage,the provisions of this Circular shall be applied to subrecipients performing work under awards if such subrecipients are institutions of higher education,hospitals or other non-profit organizations.State and local government subrecipients are subject to the provisions of regulations implementing the grants management common rule,"Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments,"published at 53 FR 8034 (3/11/88). SUBPART B-Pre-Award Requirements .10 Purpose.Sections_.11 through_.17 prescribes forms and instructions and other pre-award matters to be used in applying for Federal awards. 11 Pre-award policies. • (a)Use of Grants and Cooperative Agreements,and Contracts.In each instance,the Federal awarding agency shall decide on the appropriate award instrument(i.e.,grant,cooperative agreement,or contract).The Federal Grant and Cooperative Agreement Act(31 U.S.C.6301-08)governs the use of grants,cooperative agreements and contracts.A grant or cooperative agreement shall be used only when the principal purpose of a transaction is to accomplish a public purpose of support or stimulation authorized by Federal statute.The statutory criterion for choosing between grants and cooperative agreements is that for the latter,"substantial involvement is expected between the executive agency and the State,local government,or other recipient when carrying out the activity contemplated in the agreement."Contracts shall be used when the principal purpose is acquisition of property or services for the direct • benefit or use of the Federal Government. (b)Public Notice and Priority Setting.Federal awarding agencies shall notify the public of its intended funding priorities for discretionary grant programs,unless funding priorities are established by Federal statute. _.12 Forms for applying for Federal assistance. http://www.whitehouse.gov/omb/circulars_al 10/ 7/20/2011 ude 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)al the discretion of the Federal awarding agency. (hh)Supplies means all personal property excluding equipment,intangible property,and debt instruments as defined in this section,and inventions of a contractor conceived or first actually reduced to practice in the performance of work http://www.whitehouse.gov/omb/circulars_a110/ 7/20/2011 e equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an-engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. • • http://www.whitehouse.gov/omb/circulars a122_2004/ 8/17/2011 CIRCULAR A-110 REVISED 11/19/93 As Further Amended 9/30/99 I The White House Page 7 of 29 (a)Federal awarding agencies shall comply with the applicable report clearance requirements of 5 CFR part 1320, "Controlling Paperwork Burdens on the Public,"with regard to all forms used by the Federal awarding agency in place of or as a supplement to the Standard Form 424(SF-424)series. (b)Applicants shall use the SF-424 series or those forms and instructions prescribed by the Federal awarding agency. (c)For Federal programs covered by E.O.12372,"Intergovernmental Review of Federal Programs,"the applicant shall complete the appropriate sections of the SF-424(Application for Federal Assistance)indicating whether the application was subject to review by the State Single Point of Contact(SPOC).The name and address of the SPOC for a particular State can be obtained from the Federal awarding agency or the Catalog of Federal Domestic Assistance, The SPOC shall advise the applicant whether the program for which application is made has been selected by that State for review. (d)Federal awarding agencies that do not use the SF-424 form should indicate whether the application is subject to review by the State under E.O.12372. .13 Debarment and suspension.Federal awarding agencies and recipients shall comply with the nonprocurement debarment and suspension common rule implementing E.O.s 12549 and 12689,"Debarment and Suspension."This common rule restricts subawards and contracts with certain parties that are debarred,suspended or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. 14 Special award conditions.If an applicant or recipient:(a)has a history of poor performance,(b)is not financially stable,(c)has a management system that does not meet the standards prescribed in this Circular,(d)has • not conformed to the terms and conditions of a previous award,or(e)is not otherwise responsible,Federal awarding agencies may impose additional requirements as needed,provided that such applicant or recipient is notified in writing as to:the nature of the additional requirements,the reason why the additional requirements are being imposed,the nature of the corrective action needed,the lime allowed for completing the corrective actions,and the method for requesting reconsideration of the additional requirements imposed.Any special conditions shall be promptly removed once the conditions that prompted them have been corrected. _.15 Metric system of measurement.The Metric Conversion Act,as amended by the Omnibus Trade and Competitiveness Act(15 U.S.C.205)declares that the metric system is the preferred measurement system for U.S. trade and commerce.The Act requires each Federal agency to establish a date or dates in consultation with the Secretary of Commerce,when the metric system of measurement will be used in the agency's procurements,grants, and other business-related activities.Metric implementation may lake longer where the use of the system is initially impractical or likely to cause significant inefficiencies in the accomplishment of federally-funded activities.Federal awarding agencies shall follow the provisions of E.O.12770,"Metric Usage in Federal Government Programs." 16 Resource Conservation and Recovery Act(RCRA)(Pub.L.94-580 codified at 42 U.S.C.6962).Under the Act, any State agency or agency of a political subdivision of a State which is using appropriated Federal funds must comply with Section 6002.Section 6002 requires that preference be given in procurement programs to the purchase of specific products containing recycled materials identified in guidelines developed by the Environmental Protection • • Agency(EPA)(40 CFR parts 247-254).Accordingly,State and local institutions of higher education,hospitals,and non -profit organizations that receive direct Federal awards or other Federal funds shall give preference-in their procurement programs funded with Federal funds to the purchase of recycled products pursuant to the EPA guidelines. 17 Certifications and representations.Unless prohibited by statute or codified regulation,each Federal awarding agency is authorized and encouraged to allow recipients to submit certifications and representations required by statute,executive order,or regulation on an annual basis,if the recipients have ongoing and continuing relationships with the agency.Annual certifications and representations shall be signed by responsible officials with the authority to ensure recipients'compliance with the pertinent requirements. SUBPART C-Post-Award Requirements Financial and Program Management .20 Purpose of financial and program management.Sections .21 through_.28 prescribe standards for financial management systems,methods for making payments and rules for:satisfying cost sharing and matching requirements,accounting for program income,budget revision approvals,making audits,determining allowability of cost,and establishing fund availability. .21 Standards for financial management systems. • (a)Federal awarding agencies shall require recipients to relate financial data to performance data and develop unit cost information whenever practical. (b)Recipients'financial management systems shall provide for the following. (1)Accurate,current and complete disclosure of the financial results of each federally-sponsored project or program in accordance with the reporting requirements set forth in Section_.52.If a Federal awarding agency requires reporting on an accrual basis from a recipient that maintains its records on other than an accrual basis, the recipient shall not be required to establish an accrual accounting system.These recipients may develop such accrual data for its reports on the basis of an analysis of the documentation on hand. http://www.whitehouse.gov/omb/circulars_a110/ 7/20/2011 ://www.whitehouse.gov/omb/circulars_a110/ 7/20/2011 e equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an-engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. • • http://www.whitehouse.gov/omb/circulars a122_2004/ 8/17/2011 U1KUULAK A-11U KbVIhll 1 1/19/9i As rurther Amenuect.9/_i1/99 I the White House 1'age 8 of 29 (2)Records that identify adequately the source and application of funds for federally-sponsored activities.These records shall contain information pertaining to Federal awards,authorizations,obligations,unobligated balances, assets,outlays,income and interest. (3)Effective control over and accountability for all funds,property and other assets.Recipients shall adequately safeguard all such assets and assure they are used solely for authorized purposes. • (4)Comparison of outlays with budget amounts for each award.Whenever appropriate,financial information should be related to performance and unit cost data. (5)Written procedures to minimize the time elapsing between the transfer of funds to the recipient from the U.S. Treasury and the issuance or redemption of checks,warrants or payments by other means for program purposes by the recipient.To the extent that the provisions of the Cash Management Improvement Act(CMIA)(Pub.L. 101-453)govern,payment methods of State agencies.instrumentalities,and fiscal agents shall be consistent with CMIA Treasury-State Agreements or the CMIA default procedures codified at 31 CFR part 205,"Withdrawal of Cash from the Treasury for Advances under Federal Grant and Other Programs." (6)Written procedures for determining the reasonableness,allocabitity and allowability of costs in accordance with the provisions of the applicable Federal cost principles and the terms and conditions of the award. (7)Accounting records including cost accounting records that are supported by source documentation. (c)Where the Federal Government guarantees or insures the repayment of money borrowed by the recipient,the Federal awarding agency,at its discretion,may require adequate bonding and insurance if the bonding and insurance requirements of the recipient are not deemed adequate to protect the interest of the Federal Govemment. (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,"Surety Companies Doing Business with the United States." —22 Payment. (a)Payment methods shall minimize the time elapsing between the transfer of funds from the United States Treasury and the issuance or redemption of checks,warrants,or payment by other means by the recipients.Payment methods of State agencies or instrumentalities shall be consistent with Treasury-State CMIA agreements or default procedures codified at 31 CFR part 205. (b)Recipients are to be paid in advance,provided they maintain or demonstrate the willingness to maintain:(1)written procedures that minimize the time elapsing between the transfer of funds and disbursement by the recipient,and(2) financial management systems that meet the standards for fund control and.accountability as established in Section .21.Cash advances to a recipient organization shall be limited to the minimum amounts needed and be timed to be in accordance with the actual,immediate cash requirements of the recipient organization in carrying out the purpose of the approved program or project.The timing and amount of cash advances shall be as close as is administratively feasible to the actual disbursements by the recipient organization for direct program or project costs and the proportionate share of any allowable indirect costs. (c)Whenever possible,advances shall be consolidated to cover anticipated cash needs for all awards made by the Federal awarding agency to the recipient. (1)Advance payment mechanisms include,but are not limited to,Treasury check and electronic funds transfer. • (2)Advance payment mechanisms are subject to 31 CFR part 205. (3)Recipients shall be authorized to submit requests for advances and reimbursements at least monthly when electronic fund transfers are not used. (d)Requests for Treasury check advance payment shall be submitted on SF-270."Request for Advance or Reimbursement,"or other forms as may be authorized by OMB.This form is not to be used when Treasury check advance payments are made to the recipient automatically through the use of a predetermined payment schedule or if precluded by special Federal awarding agency instructions for electronic funds transfer. (e)Reimbursement is the preferred method when the requirements in paragraph(b)cannot be met.Federal awarding • agencies may also use this method on any construction agreement,or if the major portion of the construction project is accomplished through private market financing or Federal loans,and the Federal assistance constitutes a minor portion of the project. http://www.whitehouse.gov/omb/circulars_al 10/ 7/20/2011 .21 Standards for financial management systems. • (a)Federal awarding agencies shall require recipients to relate financial data to performance data and develop unit cost information whenever practical. (b)Recipients'financial management systems shall provide for the following. (1)Accurate,current and complete disclosure of the financial results of each federally-sponsored project or program in accordance with the reporting requirements set forth in Section_.52.If a Federal awarding agency requires reporting on an accrual basis from a recipient that maintains its records on other than an accrual basis, the recipient shall not be required to establish an accrual accounting system.These recipients may develop such accrual data for its reports on the basis of an analysis of the documentation on hand. http://www.whitehouse.gov/omb/circulars_a110/ 7/20/2011 ://www.whitehouse.gov/omb/circulars_a110/ 7/20/2011 e equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an-engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. • • http://www.whitehouse.gov/omb/circulars a122_2004/ 8/17/2011 CIRCULAR A-110 REVISED 11/19/93 As Further Amended 9/30/99 I The White House Page 9 of 29 (1)When the reimbursement method is used,the Federal awarding agency shall make payment within 30 days after receipt of the billing,unless the billing is improper. • (2)Recipients shall be authorized to submit request for reimbursement at least monthly when electronic funds • transfers are not used. (f)If a recipient cannot meet the criteria for advance payments and the Federal awarding agency has determined that reimbursement is not feasible because the recipient lacks sufficient working capital,the Federal awarding agency may provide cash on a working capital advance basis.Under this procedure,the Federal awarding agency shall advance cash to the recipient to cover its estimated disbursement needs for an initial period generally geared to the awardee's disbursing cycle.Thereafter,the Federal awarding agency shall reimburse the recipient for its actual cash disbursements:The working capital advance method of payment shall not be used for recipients unwilling or unable to provide timely advances to their subrecipient to meet the subrecipient's actual cash disbursements. (g)To the extent available,recipients shall disburse funds available from repayments to and interest earned on a revolving fund,program income,rebates,refunds,contract settlements,audit recoveries and interest earned on such funds before requesting additional cash payments. (h)Unless otherwise required by statute,Federal awarding agencies shall not withhold payments for proper charges made by recipients at any time during the project period unless(1)or(2)apply. (1)A recipient has failed to comply with the project objectives,the terms and conditions of the award,or Federal reporting requirements. (2)The recipient or subrecipient is delinquent in a debt to the United States as defined in OMB Circular A-129, "Managing Federal Credit Programs."Under such conditions,the Federal awarding agency may,upon reasonable notice,inform the recipient that payments shall not be made for obligations incurred after a specified date until the conditions are corrected or the indebtedness to the Federal Government is liquidated. (i)Standards governing the use of banks and other institutions as depositories of funds advanced under awards are as follows. (1)Except for situations described in paragraph(i)(2),Federal awarding agencies shall not require separate depository accounts for funds provided to a recipient or establish any eligibility requirements for depositories for funds provided to a recipient.However,recipients must be able to account for the receipt,obligation and expenditure of funds. (2)Advances of Federal funds shall be deposited and maintained in insured accounts whenever possible. (j)Consistent with the national goal of expanding the opportunities for women-owned and minority-owned business enterprises,recipients shall be encouraged to use women-owned and minority-owned banks(a bank which is owned at least 50 percent by women or minority group members). (k)Recipients shall maintain advances of Federal funds in interest bearing accounts,unless(1),(2)or(3)apply. (1)The recipient receives less than$120,000 in Federal awards per year. • (2)The best reasonably available interest bearing account would not be expected to earn interest in excess of $250 per year on Federal cash balances. (3)The depository would require an average or minimum balance so high that it would not be feasible within the expected Federal and non-Federal cash resources. (I)For those entities where CMIA and its implementing regulations do not apply,interest earned on Federal advances deposited in interest bearing accounts shall be remitted annually to Department of Health and Human Services, Payment Management System,Rockville,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. (m)Except as noted elsewhere in this Circular,only the following forms shall be authorized for the recipients in requesting advances and reimbursements.Federal agencies shall not require more than an original and two copies of these forms. (1)SF-270,Request for Advance or Reimbursement.Each Federal awarding agency shall adopt the SF-270 as a standard form for all nonconstruction programs when electronic funds transfer or predetermined advance methods are not used.Federal awarding agencies,however,have the option of using this form for construction programs in lieu of the SF-271,"Outlay Report and Request for Reimbursement for Construction Programs." • http://www.whitehouse.gov/omb/circulars_a110/ 7/20/2011 nagement systems. • (a)Federal awarding agencies shall require recipients to relate financial data to performance data and develop unit cost information whenever practical. (b)Recipients'financial management systems shall provide for the following. (1)Accurate,current and complete disclosure of the financial results of each federally-sponsored project or program in accordance with the reporting requirements set forth in Section_.52.If a Federal awarding agency requires reporting on an accrual basis from a recipient that maintains its records on other than an accrual basis, the recipient shall not be required to establish an accrual accounting system.These recipients may develop such accrual data for its reports on the basis of an analysis of the documentation on hand. http://www.whitehouse.gov/omb/circulars_a110/ 7/20/2011 ://www.whitehouse.gov/omb/circulars_a110/ 7/20/2011 e equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an-engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. • • http://www.whitehouse.gov/omb/circulars a122_2004/ 8/17/2011 CIRCULAR A-1 10 REVISED 11/19/93 As Further Amended 9/30/99 1 The White Hou... Page 10 of 29 • (2)SF-271.Outlay Report and Request for Reimbursement for Construction Programs.Each Federal awarding • agency shall adopt the SF-271 as the standard form to be used for requesting reimbursement for construction programs.However,a Federal awarding agency may substitute the SF-270 when the Federal awarding agency determines that it provides adequate information to meet Federal needs. _.23 Cost sharing or matching. (a)All contributions,including cash and third party in-kind,shall be accepted as part of the recipient's cost sharing or matching when such contributions meet all of the following criteria. (1)Are verifiable from the recipient's records. (2)Are not included as contributions for any other federally-assisted project or program. (3)Are necessary and reasonable for proper and efficient accomplishment of project or program objectives. (4)Are allowable under the applicable cost principles. (5)Are not paid by the Federal Government under another award,except where authorized by Federal statute to be used for cost sharing or matching. (6)Are provided for in the approved budget when required by the Federal awarding agency. (7)Conform to other provisions of this Circular,as applicable. (b)Unrecovered indirect costs may be included as part of cost sharing or matching only with the prior approval of the Federal awarding agency. (c)Values for recipient contributions of services and property shall be established in accordance with the applicable cost principles.If a Federal awarding agency authorizes recipients to donate buildings or land for construction/facilities acquisition projects or long-term use,the value of the donated property for cost sharing or matching shall be the lesser of(1)or(2). (1)The certified value of the remaining life of the property recorded in the recipient's accounting records at the time of donation. (2)The current fair market value.However.when there is sufficient justification,the Federal awarding agency may approve the use of the current fair market value of the donated property,even if it exceeds the certified value at the time of donation to the project. • (d)Volunteer services furnished by professional and technical personnel,consultants,and other skilled and unskilled • labor may 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. (e)When an employer other than the recipient furnishes the services of an employee,these services shall be valued at the employee's regular rate of pay(plus an amount of fringe benefits that are reasonable,allowable,and allocable,but exclusive of overhead costs),provided these services are in the same skill for which the employee is normally paid. http://wvvw.whitehouse.gov/omb/circulars_al 10/ 7/20/2011 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 and 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. (m)Except as noted elsewhere in this Circular,only the following forms shall be authorized for the recipients in requesting advances and reimbursements.Federal agencies shall not require more than an original and two copies of these forms. (1)SF-270,Request for Advance or Reimbursement.Each Federal awarding agency shall adopt the SF-270 as a standard form for all nonconstruction programs when electronic funds transfer or predetermined advance methods are not used.Federal awarding agencies,however,have the option of using this form for construction programs in lieu of the SF-271,"Outlay Report and Request for Reimbursement for Construction Programs." • http://www.whitehouse.gov/omb/circulars_a110/ 7/20/2011 nagement systems. • (a)Federal awarding agencies shall require recipients to relate financial data to performance data and develop unit cost information whenever practical. (b)Recipients'financial management systems shall provide for the following. (1)Accurate,current and complete disclosure of the financial results of each federally-sponsored project or program in accordance with the reporting requirements set forth in Section_.52.If a Federal awarding agency requires reporting on an accrual basis from a recipient that maintains its records on other than an accrual basis, the recipient shall not be required to establish an accrual accounting system.These recipients may develop such accrual data for its reports on the basis of an analysis of the documentation on hand. http://www.whitehouse.gov/omb/circulars_a110/ 7/20/2011 ://www.whitehouse.gov/omb/circulars_a110/ 7/20/2011 e equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an-engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. • • http://www.whitehouse.gov/omb/circulars a122_2004/ 8/17/2011 CIRCULAR A-110 REVISED 11/19/93 As Further Amended 9/30/99 I The White Hou... Page 11 of 29 • (f)Donated supplies may include such items as expendable equipment,office supplies,laboratory supplies or workshop and classroom supplies.Value assessed to donated supplies included in the cost sharing or matching share shall be reasonable and shall not exceed the fair market value of the property at the time of the donation. (g)The method used for determining cost sharing or matching for donated equipment,buildings and land for which title passes to the recipient may differ according to the purpose of the award,if(1)or(2)apply. • (1)If the purpose of the award is to assist the recipient in the acquisition of equipment,buildings or land,the total value of the donated properly may be claimed as cost sharing or matching. (2)If the purpose of the award is to support activities that require the use of equipment,buildings or land, normally only depreciation or use charges for equipment and buildings may be made.However,the full value of equipment or other capital assets and fair rental charges for land may be allowed.provided that the Federal • awarding agency has approved the charges. (h)The value of donated property shall be determined in accordance with the usual accounting policies of the • recipient,with the following qualifications. (1)The value of donated land and buildings shall not exceed its fair market value at the time of donation to the recipient as established by an independent appraiser(e.g.,certified real property appraiser or General Services Administration representative)and certified by a responsible official of the recipient. (2)The value of donated equipment shall not exceed the fair market value of equipment of the same age and condition at the time of donation. • (3)The value of donated space shall not exceed the fair rental value of comparable space as established by an independent appraisal of comparable space and facilities in a privately-owned building in the same locality. (4)The value of loaned equipment shall not exceed its fair rental value. (5)The following requirements pertain to the recipient's supporting records for in-kind contributions from third parties. (i)Volunteer services shall be documented and,to the extent feasible,supported by the same methods used by the recipient for its own employees. (ii)The basis for determining the valuation for personal service,material,equipment,buildings and land shall be documented, 24 Program income. (a)Federal awarding agencies shall apply the standards set forth in this section in requiring recipient organizations to account for program income related to projects financed in whole or in part with Federal funds. (b)Except as provided in paragraph(h)below,program income earned during the project period shall be retained by the recipient and,in accordance with Federal awarding agency regulations or the terms and conditions of the award, • shall be used in one or more of the ways listed in the following.. • http://www.whitehouse.gov/omb/circulars_a110/ 7/20/2011 mount 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://wvvw.whitehouse.gov/omb/circulars_al 10/ 7/20/2011 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 and 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. (m)Except as noted elsewhere in this Circular,only the following forms shall be authorized for the recipients in requesting advances and reimbursements.Federal agencies shall not require more than an original and two copies of these forms. (1)SF-270,Request for Advance or Reimbursement.Each Federal awarding agency shall adopt the SF-270 as a standard form for all nonconstruction programs when electronic funds transfer or predetermined advance methods are not used.Federal awarding agencies,however,have the option of using this form for construction programs in lieu of the SF-271,"Outlay Report and Request for Reimbursement for Construction Programs." • http://www.whitehouse.gov/omb/circulars_a110/ 7/20/2011 nagement systems. • (a)Federal awarding agencies shall require recipients to relate financial data to performance data and develop unit cost information whenever practical. (b)Recipients'financial management systems shall provide for the following. (1)Accurate,current and complete disclosure of the financial results of each federally-sponsored project or program in accordance with the reporting requirements set forth in Section_.52.If a Federal awarding agency requires reporting on an accrual basis from a recipient that maintains its records on other than an accrual basis, the recipient shall not be required to establish an accrual accounting system.These recipients may develop such accrual data for its reports on the basis of an analysis of the documentation on hand. http://www.whitehouse.gov/omb/circulars_a110/ 7/20/2011 ://www.whitehouse.gov/omb/circulars_a110/ 7/20/2011 e equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an-engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. • • http://www.whitehouse.gov/omb/circulars a122_2004/ 8/17/2011 CIRCULAR A-110 REVISED 11/19/93 As Further Amended 9/3U/99 the White•Hou... rage IL or L 3 • (1)Added to funds committed to the project by the Federal awarding agency and recipient and used to further eligible project or program objectives. (2)Used to finance the non-Federal share of the project or program. • (3)Deducted from the total project or program allowable cost in determining the net allowable costs on which the Federal share of costs is based. (c)When an agency authorizes the disposition of program income as described in paragraphs(b)(1)or(b)(2),program income in excess of any limits stipulated shall be used in accordance with paragraph(b)(3). • (d)In the event that the Federal awarding agency does not specify in its regulations or the terms and conditions of the award how program income is to be used,paragraph(b)(3)shall apply automatically to all projects or programs except research.For awards that support research,paragraph(b)(1)shall apply automatically unless the awarding agency indicates in the terms and conditions another alternative on the award or the recipient is subject to special award conditions,as indicated in Section_.14. (e)Unless Federal awarding agency regulations or the terms and conditions of the award provide otherwise,recipients shall have no obligation to the Federal Government regarding program income earned after the end of the project period. (f)If authorized by Federal awarding agency regulations or the terms and conditions of the award,costs incident to the generation of program income may be deducted from gross income to determine program income,provided these costs have not been charged to the award. (g)Proceeds from the sale of property shall be handled in accordance with the requirements of the Property Standards (See Sections .30 through_.37), (h)Unless Federal 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 fees and royalties for copyrighted material,patents,patent applications,trademarks,and inventions produced under an award. However,Patent and Trademark Amendments(35 U.S.C.18)apply to inventions made under an experimental, developmental,or research award. .25 Revision of budget and program plans. (a)The budget plan is the financial expression of the project or program as approved during the award process.It may include either the Federal and non-Federal share,or only the Federal share,depending upon Federal awarding agency requirements.It shall be related to performance for program evaluation purposes whenever appropriate. (b)Recipients are required to report deviations from budget and program plans,and request prior approvals for budget and program plan revisions,in accordance with this section. (c)For nonconstruction awards,recipients shall request prior approvals from Federal awarding agencies for one or more of the following program or budget related reasons, (1)Change in the scope or the objective of the project or program(even if there is no associated budget revision requiring prior written approval). (2)Change in a key person specified in the application or award document. http://www.whitehouse.goviomb/circulars_al 10/ 7/20/2011 v/omb/circulars_al 10/ 7/20/2011 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 and 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. (m)Except as noted elsewhere in this Circular,only the following forms shall be authorized for the recipients in requesting advances and reimbursements.Federal agencies shall not require more than an original and two copies of these forms. (1)SF-270,Request for Advance or Reimbursement.Each Federal awarding agency shall adopt the SF-270 as a standard form for all nonconstruction programs when electronic funds transfer or predetermined advance methods are not used.Federal awarding agencies,however,have the option of using this form for construction programs in lieu of the SF-271,"Outlay Report and Request for Reimbursement for Construction Programs." • http://www.whitehouse.gov/omb/circulars_a110/ 7/20/2011 nagement systems. • (a)Federal awarding agencies shall require recipients to relate financial data to performance data and develop unit cost information whenever practical. (b)Recipients'financial management systems shall provide for the following. (1)Accurate,current and complete disclosure of the financial results of each federally-sponsored project or program in accordance with the reporting requirements set forth in Section_.52.If a Federal awarding agency requires reporting on an accrual basis from a recipient that maintains its records on other than an accrual basis, the recipient shall not be required to establish an accrual accounting system.These recipients may develop such accrual data for its reports on the basis of an analysis of the documentation on hand. http://www.whitehouse.gov/omb/circulars_a110/ 7/20/2011 ://www.whitehouse.gov/omb/circulars_a110/ 7/20/2011 e equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an-engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. • • http://www.whitehouse.gov/omb/circulars a122_2004/ 8/17/2011 CIRCULAR A-110 REVISED 11/19/93 As Further Amended 9/30/99 1 The White Hou... Page 13 of 29 (3)The absence for more than three months,or a 25 percent reduction in time devoted to the project,by the approved project director or principal investigator. (4)The need for additional Federal funding. (5)The transfer of amounts budgeted for indirect costs to absorb increases in direct costs,or vice versa,if approval is required by the Federal awarding agency. (6)The inclusion,unless waived by the Federal awarding agency,of costs that require prior approval in accordance with OMB Circular A-21,"Cost Principles for Educational Institutions,"OMB Circular A-122."Cost Principles for Non-Profit Organizations,"or 45 CFR part 74 Appendix E,"Principles for Determining Costs Applicable to Research and Development under Grants and Contracts with Hospitals,"or 48 CFR part 31. "Contract Cost Principles and Procedures,"as applicable. (7)The transfer of funds allotted for training allowances(direct payment to trainees)to other categories of expense. (8)Unless described in the application and funded in the approved awards,the subaward,transfer or contracting out of any work under an award.This provision does not apply to the purchase of supplies,material,equipment or general support services. (d)No other prior approval requirements for specific items may be imposed unless a deviation has been approved by OMB. (e)Except for requirements listed in paragraphs(c)(1)and(c)(4)of this section,Federal awarding agencies are authorized,at their option,to waive cost-related and administrative prior written approvals required by this Circular and OMB Circulars A-21 and A-122.Such waivers may include authorizing recipients to do any one or more of the following. (1)Incur pre-award costs 90 calendar days prior to award or more than 90 calendar days with the prior approval of the Federal awarding agency.All pre-award costs are incurred at the recipient's risk(i.e.,the Federal awarding agency is under no obligation to reimburse such costs if for any reason the recipient does not receive an award' • or if the award is less than anticipated and inadequate to cover such costs). (2)Initiate a one-time extension of the expiration date of the award of up to 12 months unless one or more of the following conditions apply.For one-time extensions,the recipient must notify the Federal awarding agency in • writing with the supporting reasons and revised expiration date at least 10 days before the expiration date. specified in the award.This one-time extension may not be exercised merely for the purpose of using unobligated balances, (i)The terms and conditions of award prohibit the extension. (ii)The extension requires additional Federal funds. (iii)The extension involves any change in the approved objectives or scope of the project. (3)Carry forward unobligated balances to subsequent funding periods. http://www.whitehouse.gov/omb/circulars_a110/ 7/20/2011 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.goviomb/circulars_al 10/ 7/20/2011 v/omb/circulars_al 10/ 7/20/2011 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 and 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. (m)Except as noted elsewhere in this Circular,only the following forms shall be authorized for the recipients in requesting advances and reimbursements.Federal agencies shall not require more than an original and two copies of these forms. (1)SF-270,Request for Advance or Reimbursement.Each Federal awarding agency shall adopt the SF-270 as a standard form for all nonconstruction programs when electronic funds transfer or predetermined advance methods are not used.Federal awarding agencies,however,have the option of using this form for construction programs in lieu of the SF-271,"Outlay Report and Request for Reimbursement for Construction Programs." • http://www.whitehouse.gov/omb/circulars_a110/ 7/20/2011 nagement systems. • (a)Federal awarding agencies shall require recipients to relate financial data to performance data and develop unit cost information whenever practical. (b)Recipients'financial management systems shall provide for the following. (1)Accurate,current and complete disclosure of the financial results of each federally-sponsored project or program in accordance with the reporting requirements set forth in Section_.52.If a Federal awarding agency requires reporting on an accrual basis from a recipient that maintains its records on other than an accrual basis, the recipient shall not be required to establish an accrual accounting system.These recipients may develop such accrual data for its reports on the basis of an analysis of the documentation on hand. http://www.whitehouse.gov/omb/circulars_a110/ 7/20/2011 ://www.whitehouse.gov/omb/circulars_a110/ 7/20/2011 e equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an-engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. • • http://www.whitehouse.gov/omb/circulars a122_2004/ 8/17/2011 CIRCULAR A-110 REVISED 11/19/93 As Further Amended 9/30/99 I The White Hou... Page 14 of 29 • (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 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://wvvw.whitehouse.gov/omb/circulars_a110/ 7/20/2011 se entities where CMIA and its implementing regulations do not apply,interest earned on Federal advances deposited in interest bearing accounts shall be remitted annually to Department of Health and Human Services, Payment Management System,Rockville,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. (m)Except as noted elsewhere in this Circular,only the following forms shall be authorized for the recipients in requesting advances and reimbursements.Federal agencies shall not require more than an original and two copies of these forms. (1)SF-270,Request for Advance or Reimbursement.Each Federal awarding agency shall adopt the SF-270 as a standard form for all nonconstruction programs when electronic funds transfer or predetermined advance methods are not used.Federal awarding agencies,however,have the option of using this form for construction programs in lieu of the SF-271,"Outlay Report and Request for Reimbursement for Construction Programs." • http://www.whitehouse.gov/omb/circulars_a110/ 7/20/2011 nagement systems. • (a)Federal awarding agencies shall require recipients to relate financial data to performance data and develop unit cost information whenever practical. (b)Recipients'financial management systems shall provide for the following. (1)Accurate,current and complete disclosure of the financial results of each federally-sponsored project or program in accordance with the reporting requirements set forth in Section_.52.If a Federal awarding agency requires reporting on an accrual basis from a recipient that maintains its records on other than an accrual basis, the recipient shall not be required to establish an accrual accounting system.These recipients may develop such accrual data for its reports on the basis of an analysis of the documentation on hand. http://www.whitehouse.gov/omb/circulars_a110/ 7/20/2011 ://www.whitehouse.gov/omb/circulars_a110/ 7/20/2011 e equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an-engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. • • http://www.whitehouse.gov/omb/circulars a122_2004/ 8/17/2011 CIRCULAR A-110 REVISED 11/19/93 As Further Amended 9/30/99 I The White Hou... Page 15 of 29 • (b)State and local governments shall be subject to the audit requirements contained in the Single Audit Act Amendments of 1996(31 USC 7501-7507)and revised OMB Circular A-133,"Audits of States,Local Governments, and Non-Profit Organizations." (c)For-profit hospitals not covered by the audit provisions of revised OMB Circular A-133 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 governments is determined in accordance with the provisions of OMB Circular A-87,"Cost Principles for State,Local,and Indian Tribal Governments."The allowability of costs incurred by non-profit organizations is determined in accordance with the provisions of OMB Circular A-122,"Cost Principles for Non-Profit Organizations,"The allowability of costs incurred by institutions of higher education is determined in accordance with the provisions of OMB Circular A-21,"Cost Principles . for Educational Institutions."The allowability of costs incurred by hospitals is determined in accordance with the provisions of Appendix E of 45 CFR part 74."Principles for Determining Costs Applicable to Research and Development Under Grants and Contracts with Hospitals."The allowability of costs incurred by commercial organizations and those non-profit organizations listed in Attachment C to Circular A-122 is determined in accordance with the provisions of the Federal Acquisition Regulation(FAR)at 48 CFR part 31. _.28 Period of availability of funds.where a funding period is specified,a recipient may charge to the grant only allowable costs resulting from obligations incurred during the funding period and any pre-award costs authorized by the Federal awarding agency. _.29 Conditional exemptions. (a)OMB authorizes conditional exemption from OMB administrative requirements and cost principles circulars for certain Federal programs with statutorily-authorized consolidated planning and consolidated administrative funding, that are identified by a Federal agency and approved by the head of the Executive department or establishment.A Federal agency shall consult with OMB during its consideration of whether to grant such an exemption. (b)To promote efficiency in State and local program administration,when Federal non-entitlement programs with common purposes have specific statutorily-authorized consolidated planning and consolidated administrative funding and where most of the State agency's resources come from non-Federal sources,Federal agencies may exempt these covered State-administered,non-entitlement grant programs from certain OMB grants management requirements.The exemptions would be from all but the allocability of costs provisions of OMB Circulars A-87(Attachment A,subsection C.3),"Cost Principles for State,Local,and Indian Tribal Governments,"A-21(Section C,subpart 4),"Cost Principles for Educational Institutions,"and A-122(Attachment A,subsection A.4),"Cost Principles for Non-Profit Organizations," • and from all of the administrative requirements provisions of OMB Circular A-110,"Uniform Adtninistrative Requirements for Grants and Agreements with Institutions of Higher Education,Hospitals,and Other Non-Profit Organizations,"and the agencies'grants management common rule. (c)When a Federal agency provides this flexibility,as a prerequisite to a State's exercising this option,a State must adopt its own written fiscal and administrative requirements for expending and accounting for all funds,which are consistent with the provisions of OMB Circular A-87,and extend such policies to all subrecipients.These fiscal and administrative requirements must be sufficiently specific to ensure that:funds are used in compliance with all applicable Federal statutory and regulatory provisions,costs are reasonable and necessary for operating these programs,and funds are not be used for general expenses required to carry out other responsibilities of a State or its subrecipients. Property Standards 30 Purpose of property standards.Sections_.31 through_.37 set forth uniform standards governing management and disposition of property furnished by the Federal Government whose cost was charged to a project supported by a Federal award.Federal awarding agencies shall require recipients to observe these standards under • http://www.whitehouse.gov/omb/circulars_a110/ 7/20/2011 Request for Reimbursement for Construction Programs." • http://www.whitehouse.gov/omb/circulars_a110/ 7/20/2011 nagement systems. • (a)Federal awarding agencies shall require recipients to relate financial data to performance data and develop unit cost information whenever practical. (b)Recipients'financial management systems shall provide for the following. (1)Accurate,current and complete disclosure of the financial results of each federally-sponsored project or program in accordance with the reporting requirements set forth in Section_.52.If a Federal awarding agency requires reporting on an accrual basis from a recipient that maintains its records on other than an accrual basis, the recipient shall not be required to establish an accrual accounting system.These recipients may develop such accrual data for its reports on the basis of an analysis of the documentation on hand. http://www.whitehouse.gov/omb/circulars_a110/ 7/20/2011 ://www.whitehouse.gov/omb/circulars_a110/ 7/20/2011 e equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an-engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. • • http://www.whitehouse.gov/omb/circulars a122_2004/ 8/17/2011 CIRCULAR A-110 REVISED 11/19/93 As Further Amended 9/30/99 I The White Hou... Page 16 of 29 awards and shall not impose additional requirements,unless specifically required by Federal statute.The recipient may use its own property management standards and procedures provided it observes the provisions of Sections 31 through .37. • .31 Insurance coverage-Recipients shall,at a minimum,provide the equivalent insurance coverage for real property and equipment acquired with Federal funds as provided to property owned by the recipient.Federally-owned property need not be insured unless required by the terms and conditions of the award. _.32 Real property.Each Federal awarding agency shall prescribe requirements for recipients concerning the use and disposition of real property acquired in whole or in part under awards.Unless otherwise provided by statute,such requirements,at a minimum,shall contain the following. (a)Title to real property shall vest in the recipient subject to the condition that the recipient shall use the real property for the authorized purpose of the project as long as it is needed and shall not encumber the property without approval of the Federal awarding agency. (b)The recipient shall obtain written approval by the Federal awarding agency for the use of real property in other federally-sponsored projects when the recipient determines that the property is no longer needed for the purpose of • the original project.Use in other'projects shall be limited to those under federally-sponsored projects(i.e.,awards)or programs that have purposes consistent with those authorized for support by the Federal awarding agency. (c)When the real 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 an eligible third party provided that,in such cases,the recipient shall be entitled to compensation for its attributable percentage • of the current fair market value of the property. _.33 Federally-owned and exempt property. (a)Federally-owned property. (1)Title to federally-owned property remains vested in the Federal Government.Recipients shall submit annually an inventory listing of federally-owned property in their custody to the Federal awarding agency.Upon completion of the award or when the property is no longer needed,the recipient shall report the property to the Federal awarding agency for further Federal agency utilization. (2)If the Federal awarding agency has no further need for the property,it shall be declared excess and reported to the General Services Administration,unless the.Federal awarding agency has statutory authority to dispose of the property by alternative methods(e.g..the authority provided by the Federal Technology Transfer Act(15 U.S.C.3710(I))to donate research equipment to educational and non-profit organizations in accordance with E.O.12821,"Improving Mathematics and Science Education in Support of the National Education Goals.") Appropriate instructions shall be issued to the recipient by the Federal awarding agency. (b)Exempt property.When statutory authority exists,the Federal awarding agency has the option to vest title to property acquired with Federal funds in the recipient without further obligation to the Federal Government and under conditions the Federal awarding agency considers appropriate.Such property is"exempt property."Should a Federal awarding agency not establish conditions,title to exempt property upon acquisition shall vest in the recipient without further obligation to the Federal Government. http://www.whitehouse.gov/omb/circulars_a110/ 7/20/2011 gov/omb/circulars_a110/ 7/20/2011 Request for Reimbursement for Construction Programs." • http://www.whitehouse.gov/omb/circulars_a110/ 7/20/2011 nagement systems. • (a)Federal awarding agencies shall require recipients to relate financial data to performance data and develop unit cost information whenever practical. (b)Recipients'financial management systems shall provide for the following. (1)Accurate,current and complete disclosure of the financial results of each federally-sponsored project or program in accordance with the reporting requirements set forth in Section_.52.If a Federal awarding agency requires reporting on an accrual basis from a recipient that maintains its records on other than an accrual basis, the recipient shall not be required to establish an accrual accounting system.These recipients may develop such accrual data for its reports on the basis of an analysis of the documentation on hand. http://www.whitehouse.gov/omb/circulars_a110/ 7/20/2011 ://www.whitehouse.gov/omb/circulars_a110/ 7/20/2011 e equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an-engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. • • http://www.whitehouse.gov/omb/circulars a122_2004/ 8/17/2011 CIRCULAR A-110 REVISED 11/19/93 As Further Amended 9/30/99 I The White Hou... Page 17 of 29 _.34 Equipment, (a)Title to equipment acquired by a recipient with Federal funds shall vest in the recipient,subject to conditions of this section. • (b)The recipient shall not use equipment acquired with Federal funds to provide services to non-Federal outside organizations for a fee that is less than private companies charge for equivalent services,unless specifically authorized by Federal statute,for as long as the Federal Government retains an interest in the equipment. • (c)The recipient shall use the equipment in the project or program for which it was acquired as long as needed, whether or not the project or program continues to be supported by Federal funds and shall not encumber the property without approval of the Federal awarding agency.When no longer needed for the original project or program.the recipient shall use the equipment in connection with its other federally-sponsored activities,in the following order of priority:(i)Activities sponsored by the Federal awarding agency which funded the original project,then(ii)activities sponsored by other Federal awarding agencies. • (d)During the time that equipment is used on the project or program for which it was acquired,the recipient shall make it available for use on other projects or programs if 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 by the Federal Government shall be permissible if authorized by the Federal awarding agency.User charges shall be treated as program income. (e)When acquiring replacement equipment,the recipient may use the equipment to be replaced as trade-in or sell the equipment and use the proceeds to offset the costs of the replacement equipment subject to the approval of the Federal awarding agency. (f)The recipient's property management standards for equipment acquired with Federal funds and federally-owned equipment shall include all of the following. (1)Equipment records shall be maintained accurately and shall include the following information. (i)A description of the equipment. (ii)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_a110/ 7/20/2011 property. _.33 Federally-owned and exempt property. (a)Federally-owned property. (1)Title to federally-owned property remains vested in the Federal Government.Recipients shall submit annually an inventory listing of federally-owned property in their custody to the Federal awarding agency.Upon completion of the award or when the property is no longer needed,the recipient shall report the property to the Federal awarding agency for further Federal agency utilization. (2)If the Federal awarding agency has no further need for the property,it shall be declared excess and reported to the General Services Administration,unless the.Federal awarding agency has statutory authority to dispose of the property by alternative methods(e.g..the authority provided by the Federal Technology Transfer Act(15 U.S.C.3710(I))to donate research equipment to educational and non-profit organizations in accordance with E.O.12821,"Improving Mathematics and Science Education in Support of the National Education Goals.") Appropriate instructions shall be issued to the recipient by the Federal awarding agency. (b)Exempt property.When statutory authority exists,the Federal awarding agency has the option to vest title to property acquired with Federal funds in the recipient without further obligation to the Federal Government and under conditions the Federal awarding agency considers appropriate.Such property is"exempt property."Should a Federal awarding agency not establish conditions,title to exempt property upon acquisition shall vest in the recipient without further obligation to the Federal Government. http://www.whitehouse.gov/omb/circulars_a110/ 7/20/2011 gov/omb/circulars_a110/ 7/20/2011 Request for Reimbursement for Construction Programs." • http://www.whitehouse.gov/omb/circulars_a110/ 7/20/2011 nagement systems. • (a)Federal awarding agencies shall require recipients to relate financial data to performance data and develop unit cost information whenever practical. (b)Recipients'financial management systems shall provide for the following. (1)Accurate,current and complete disclosure of the financial results of each federally-sponsored project or program in accordance with the reporting requirements set forth in Section_.52.If a Federal awarding agency requires reporting on an accrual basis from a recipient that maintains its records on other than an accrual basis, the recipient shall not be required to establish an accrual accounting system.These recipients may develop such accrual data for its reports on the basis of an analysis of the documentation on hand. http://www.whitehouse.gov/omb/circulars_a110/ 7/20/2011 ://www.whitehouse.gov/omb/circulars_a110/ 7/20/2011 e equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an-engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. • • http://www.whitehouse.gov/omb/circulars a122_2004/ 8/17/2011 CIRCULAR A-I 1U REVISED 11/19/93 As Further Amended 9/30/99 I The White Hou... Page 18 of 29 (vii)Location and condition of the equipment and the date the information was reported. • (viii)Unit acquisition cost. • (ix)Ultimate disposition data,including date of disposal and sales price or the method used to determine current fair market value where a recipient compensates the Federal awarding agency for its share. • (2)Equipment owned by the Federal Government shall be identified to indicate Federal ownership. • (3)A physical inventory of equipment shall be taken and the results reconciled with the equipment records at least once every two years.Any differences between quantities determined by the physical inspection and those shown in the accounting records shall be investigated to determine the causes of the difference.The recipient shall,in connection with the inventory,verity the existence,current utilization.and continued need for the equipment. (4)A control system shall be in effect to insure adequate safeguards to prevent loss,damage,or theft of the equipment.Any loss,damage,or theft of equipment shall be investigated and fully documented;if the equipment was owned by the Federal Govemment,the recipient shall promptly notify the Federal awarding agency. (5)Adequate maintenance procedures shall be implemented to keep the equipment in good condition. (6)Where the recipient is authorized or required to sell the equipment,proper sales procedures shall be established which provide for competition to the extent practicable and result in the highest possible return. (g)When the recipient no longer needs the equipment.the equipment may be used for other activities in accordance with the following standards.For equipment with a current per unit fair market value of$5000 or more,the recipient may retain the equipment for other uses provided that compensation is made to the original Federal awarding agency or its successor.The amount of compensation shall be computed by applying the percentage of Federal participation in the cost of the original project or program to the current fair market value of the equipment.If the recipient has no need for the equipment,the recipient shall request disposition instructions from the Federal awarding agency.The Federal awarding agency shall detemmine whether the'equipment can be used to meet the agency's requirements.If no requirement exists within that agency,the availability of the equipment shall be reported to the General Services Administration by the Federal awarding agency to determine whether a requirement for the equipment exists in other Federal agencies.The Federal awarding agency shall issue instructions to the recipient no later than 120 calendar days after the recipient's request and the following procedures shall govern. (1)If so instructed or if disposition instructions are not issued within 120 calendar days after the recipient's request,the recipient shall sell the equipment and reimburse the Federal awarding agency an amount computed by applying to the sales proceeds the percentage of Federal participation in the cost of the original project or program.However,the recipient shall be permitted to deduct and retain from the Federal share$500 or ten percent of the proceeds.whichever is less,for the recipient's selling and handling expenses. (2)If the recipient is instructed to ship the equipment elsewhere.the recipient shall be reimbursed by the Federal Government by an amount which is computed by applying the percentage of the recipient's participation in the cost of the original project or program to the current fair market value of the equipment,plus any reasonable shipping or interim storage costs incurred. (3)If the recipient is instructed to otherwise dispose of the equipment,the recipient shall be reimbursed by the Federal awarding agency for such costs incurred in its disposition. • http://www.whitehouse.gov/ornb/circulars_al 10/ 7/20/2011 nce with E.O.12821,"Improving Mathematics and Science Education in Support of the National Education Goals.") Appropriate instructions shall be issued to the recipient by the Federal awarding agency. (b)Exempt property.When statutory authority exists,the Federal awarding agency has the option to vest title to property acquired with Federal funds in the recipient without further obligation to the Federal Government and under conditions the Federal awarding agency considers appropriate.Such property is"exempt property."Should a Federal awarding agency not establish conditions,title to exempt property upon acquisition shall vest in the recipient without further obligation to the Federal Government. http://www.whitehouse.gov/omb/circulars_a110/ 7/20/2011 gov/omb/circulars_a110/ 7/20/2011 Request for Reimbursement for Construction Programs." • http://www.whitehouse.gov/omb/circulars_a110/ 7/20/2011 nagement systems. • (a)Federal awarding agencies shall require recipients to relate financial data to performance data and develop unit cost information whenever practical. (b)Recipients'financial management systems shall provide for the following. (1)Accurate,current and complete disclosure of the financial results of each federally-sponsored project or program in accordance with the reporting requirements set forth in Section_.52.If a Federal awarding agency requires reporting on an accrual basis from a recipient that maintains its records on other than an accrual basis, the recipient shall not be required to establish an accrual accounting system.These recipients may develop such accrual data for its reports on the basis of an analysis of the documentation on hand. http://www.whitehouse.gov/omb/circulars_a110/ 7/20/2011 ://www.whitehouse.gov/omb/circulars_a110/ 7/20/2011 e equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an-engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. • • http://www.whitehouse.gov/omb/circulars a122_2004/ 8/17/2011 CIRCULAR A-110 REVISED 11/19/93 As Further Amended 9/30/99 11'he White Hou... Page 19 of 29 (4)The Federal awarding agency may reserve the right to transfer the title to the Federal Government or to a third party named by the Federal Government when such third party is otherwise eligible under existing statutes. Such transfer shall be subject to the following standards. (i)The equipment shall be appropriately identified in the award or otherwise made known to the recipient in writing. (ii)The Federal awarding agency shall issue disposition instructions within 120 calendar days after receipt of a final inventory.The final inventory shall list all equipment acquired with grant funds and federally- owned equipment.If the Federal awarding agency fails to issue disposition instructions within the 120 calendar day period,the recipient shall apply the standards of this section,as appropriate. (iii)When the Federal awarding agency exercises its right to take title,the equipment shall be subject to the provisions for federally-owned equipment. .35 Supplies and other expendable property. (a)Title to supplies and other expendable property shall vest in the recipient upon acquisition.If there is a residual inventory of unused supplies exceeding$5000 in total aggregate value upon termination or completion of the project or program and the supplies are not needed for any other federally-sponsored project or program,the recipient shall retain the supplies for use on non-Federal sponsored activities or sell them,but shall,in either case,compensate the Federal Government for its share,The amount of compensation shall be computed in the same manner as for • equipment. (b)The recipient shall not use supplies acquired with Federal funds to provide services to non-Federal outside organizations for a fee that is less than private companies charge for equivalent services,unless specifically authorized by Federal statute as long as the Federal Government retains an interest in the supplies. .36 Intangible property. (a)The recipient may copyright any work that is subject to copyright and was developed,or for which ownership was purchased,under an award.The Federal awarding agency(ies)reserve a royalty-free,nonexclusive and irrevocable right to reproduce,publish,or otherwise use the work for Federal purposes,and to authorize others to do so. (b)Recipients are subject to applicable regulations governing patents and inventions,including government-wide regulations issued by the Department of Commerce at 37 CFR part 401,"Rights to Inventions Made by Nonprofit Organizations and Small Business Firms Under Government Grants.Contracts and Cooperative Agreements." (c)The Federal Government has the right to: (1)obtain,reproduce,publish or otherwise use the data first produced under an award;and (2)authorize others to receive,reproduce,publish,or otherwise use such data for Federal purposes. (d)(1)In addition,in response to a Freedom of Information Act(FOIA)request for research data relating to published research findings produced under an award that were used by the Federal Government in developing an agency action that has the force and effect of law,the Federal awarding agency shall request,and the recipient shall provide, within a reasonable time,the research data so that they can be made available to the public through the procedures established under the FOIA.If the Federal awarding agency obtains the research data solely in response to a FOIA request,the agency may charge the requester a reasonable fee equaling the full incremental cost of obtaining the research data.This fee should reflect costs incurred by the agency,the recipient,and applicable subrecipients.This fee is in addition to any fees the agency may assess under the FOIA(5 U.S.C.552(a)(4)(A)). http://www.whitehouse.gov/omb/circulars_al 10/ 7/20/2011 rding agency for such costs incurred in its disposition. • http://www.whitehouse.gov/ornb/circulars_al 10/ 7/20/2011 nce with E.O.12821,"Improving Mathematics and Science Education in Support of the National Education Goals.") Appropriate instructions shall be issued to the recipient by the Federal awarding agency. (b)Exempt property.When statutory authority exists,the Federal awarding agency has the option to vest title to property acquired with Federal funds in the recipient without further obligation to the Federal Government and under conditions the Federal awarding agency considers appropriate.Such property is"exempt property."Should a Federal awarding agency not establish conditions,title to exempt property upon acquisition shall vest in the recipient without further obligation to the Federal Government. http://www.whitehouse.gov/omb/circulars_a110/ 7/20/2011 gov/omb/circulars_a110/ 7/20/2011 Request for Reimbursement for Construction Programs." • http://www.whitehouse.gov/omb/circulars_a110/ 7/20/2011 nagement systems. • (a)Federal awarding agencies shall require recipients to relate financial data to performance data and develop unit cost information whenever practical. (b)Recipients'financial management systems shall provide for the following. (1)Accurate,current and complete disclosure of the financial results of each federally-sponsored project or program in accordance with the reporting requirements set forth in Section_.52.If a Federal awarding agency requires reporting on an accrual basis from a recipient that maintains its records on other than an accrual basis, the recipient shall not be required to establish an accrual accounting system.These recipients may develop such accrual data for its reports on the basis of an analysis of the documentation on hand. http://www.whitehouse.gov/omb/circulars_a110/ 7/20/2011 ://www.whitehouse.gov/omb/circulars_a110/ 7/20/2011 e equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an-engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. • • http://www.whitehouse.gov/omb/circulars a122_2004/ 8/17/2011 l:1KLULAK A-1 1 U Kb V thLL) 1 1/19/9i AS 1i urtner Amenaea 9/iU/9 1 I 1 ne write riou... rage LU of 29 • (2)The following definitions apply for purposes of paragraph(d)of this section: . (i)Research data is defined as the recorded factual material commonly accepted in the scientific community as necessary to validate research findings,but not any of the following:preliminary analyses, drafts of scientific papers,plans for future research,peer reviews,or communications with colleagues.This "recorded"material excludes physical objects(e.g.,laboratory samples).Research data also do not include: • (A)Trade secrets,commercial information,materials necessary to be held confidential by a researcher until they are published,or similar information which is protected under law;and • (B)Personnel and medical information and similar information the disclosure of which would constitute a clearly unwarranted invasion of personal privacy,such as information that could be used to identify a particular person in a research study. (ii)Published is defined as either when: • (A)Research findings are published in a peer-reviewed scientific or technical journal;or (B)A Federal agency publicly and officially cites the research findings in support of an agency action that has the force and effect of law. . (iii)Used by the Federal Government in developing an agency action that has the force and effect of law is defined as when an agency publicly and officially cites the research findings in support ofan agency action that has the force and effect of law. (e)Title to intangible property and debt instruments acquired under an award or subaward vests upon acquisition in the recipient.The recipient shall use that property for the originally-authorized purpose,and the recipient shall not encumber the property without approval of the Federal awarding agency.Nfien no longer needed for the originally authorized purpose,disposition of the intangible property shall occur in accordance with the provisions of paragraph _.34(g). _.37 Property trust relationship.Real property,equipment,intangible property and debt instruments that are acquired or improved with Federal funds shall be held in trust by the recipient as trustee for the beneficiaries of the project or program under which the property was acquired or improved.Agencies may require recipients to record liens or other appropriate notices of record to indicate that personal or real property has been acquired or improved with Federal funds and that use and disposition conditions apply to the property. Procurement Standards • .40 Purpose of procurement standards.Sections_.41 through .48 set forth standards for use by recipients in establishing procedures for the procurement of supplies and other expendable property,equipment,real property and other services with Federal funds.These standards are furnished to ensure that such materials and services are obtained in an effective manner and in compliance with the provisions of applicable Federal statutes and executive orders.No additional procurement standards or requirements shall be imposed by the Federal awarding agencies upon recipients,unless specifically required by Federal statute or executive order or approved by OMB. _.41 Recipient responsibilities.The standards contained in this section do not relieve the recipient of the contractual responsibilities arising under its contract(s).The recipient is the responsible authority.without recourse to the Federal awarding agency,regarding the settlement and satisfaction of all contractual and administrative issues arising out of procurements entered into in support of an award or other agreement.This includes disputes,claims,protests of award,source evaluation or other matters of a contractual nature.Matters concerning violation of statute are to be referred to such Federal,State or local authority as may have proper jurisdiction. _.42 Codes of conduct.The recipient shall maintain written standards of conduct governing the performance of its employees engaged in the award and administration of contracts.No employee,officer,or agent shall participate in 'the selection,award,or administration of a contract supported by Federal funds if a real or apparent conflict of interest would be involved.Such a conflict would arise when the employee,officer,or agent,any member of his or her immediate family,his or her partner,or an organization which employs or is about to employ any of the parties indicated herein,has a financial or other interest in the firm selected for an award.The officers,employees,and agents of the recipient shall neither solicit nor accept gratuities,favors,or anything of monetary value from contractors,or parties to subagreements.However,recipients may set standards for situations in which the financial interest is not /2 /2 11 http://www.whitehouse.gov/orb/circulars_a110/ 7 0 0 • (a)Federal awarding agencies shall require recipients to relate financial data to performance data and develop unit cost information whenever practical. (b)Recipients'financial management systems shall provide for the following. (1)Accurate,current and complete disclosure of the financial results of each federally-sponsored project or program in accordance with the reporting requirements set forth in Section_.52.If a Federal awarding agency requires reporting on an accrual basis from a recipient that maintains its records on other than an accrual basis, the recipient shall not be required to establish an accrual accounting system.These recipients may develop such accrual data for its reports on the basis of an analysis of the documentation on hand. http://www.whitehouse.gov/omb/circulars_a110/ 7/20/2011 ://www.whitehouse.gov/omb/circulars_a110/ 7/20/2011 e equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an-engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. • • http://www.whitehouse.gov/omb/circulars a122_2004/ 8/17/2011 CIRCULAR A-110 REVISED 11/19/93 As Further Amended 9/30/99 1 The White Hou... Page 21 of 29 substantial or the gift is an unsolicited item of nominal value.The standards of conduct shall provide for disciplinary actions to be applied for violations of such standards by officers,employees,or agents of the recipient. _.43 Competition.All procurement transactions shall be conducted in a manner to provide,to the maximum extent • practical,open and free competition.The recipient shall be alert to organizational conflicts of interest as well as noncompetitive practices among contractors that may restrict or eliminate competition or otherwise restrain trade.In order to ensure objective contractor performance and eliminate unfair competitive advantage,contractors that develop or draft specifications,requirements,statements of work,invitations for bids and/or requests for proposals shall be excluded from competing for such procurements.Awards shall be made to the bidder or offeror whose bid or offer is responsive to the solicitation and is most advantageous to the recipient,price.quality and other factors considered. Solicitations shall clearly set forth all requirements that the bidder or offeror shall fulfill in order for the bid or offer to be evaluated by the recipient.Any and all bids or offers may be rejected when it is in the recipient's interest to do so. 44 Procurement procedures. (a)All recipients shall establish written procurement procedures.These procedures shall provide for,at a minimum, that(1),(2)and(3)apply. (1)Recipients avoid purchasing unnecessary items. (2)Where appropriate,an analysis is made of lease and purchase alternatives to determine which would be the • most economical and practical procurement for the Federal Government. (3)Solicitations for goods and services provide for all of the following. (i)A clear and accurate description of the technical requirements for the material,product or service to be procured.In competitive procurements,such a description shall not contain features which unduly restrict competition. (ii)Requirements which,fhe bidder/offeror must fulfill and all other factors to be used in evaluating bids or proposals. (iii)A description,whenever practicable.of technical requirements in terms of functions to be performed or performance required,including the range of acceptable characteristics or minimum acceptable standards. (iv)The specific features of"brand name or equal"descriptions that bidders are required to meet when such.items are included in the solicitation. (v)The acceptance,to the extent practicable and economically feasible,of products and services dimensioned in the metric system of measurement. (vi)Preference,to the extent practicable and economically feasible,for products and services that conserve resourcesprotecttheenvironment and are energyefficient, natural and h (b)Positive efforts shall be made by recipients to utilize small businesses,minority-owned firms,and women's business enterprises,whenever possible.Recipients of Federal awards shalt take all of the following steps to further this goal. • - (1)Ensure that small businesses.minority-owned firms,and women's business enterprises are used to the fullest extent practicable. http://www.whitehouse.gov/omb/circulars_a110/ 7/20/2011 sponsibilities.The standards contained in this section do not relieve the recipient of the contractual responsibilities arising under its contract(s).The recipient is the responsible authority.without recourse to the Federal awarding agency,regarding the settlement and satisfaction of all contractual and administrative issues arising out of procurements entered into in support of an award or other agreement.This includes disputes,claims,protests of award,source evaluation or other matters of a contractual nature.Matters concerning violation of statute are to be referred to such Federal,State or local authority as may have proper jurisdiction. _.42 Codes of conduct.The recipient shall maintain written standards of conduct governing the performance of its employees engaged in the award and administration of contracts.No employee,officer,or agent shall participate in 'the selection,award,or administration of a contract supported by Federal funds if a real or apparent conflict of interest would be involved.Such a conflict would arise when the employee,officer,or agent,any member of his or her immediate family,his or her partner,or an organization which employs or is about to employ any of the parties indicated herein,has a financial or other interest in the firm selected for an award.The officers,employees,and agents of the recipient shall neither solicit nor accept gratuities,favors,or anything of monetary value from contractors,or parties to subagreements.However,recipients may set standards for situations in which the financial interest is not /2 /2 11 http://www.whitehouse.gov/orb/circulars_a110/ 7 0 0 • (a)Federal awarding agencies shall require recipients to relate financial data to performance data and develop unit cost information whenever practical. (b)Recipients'financial management systems shall provide for the following. (1)Accurate,current and complete disclosure of the financial results of each federally-sponsored project or program in accordance with the reporting requirements set forth in Section_.52.If a Federal awarding agency requires reporting on an accrual basis from a recipient that maintains its records on other than an accrual basis, the recipient shall not be required to establish an accrual accounting system.These recipients may develop such accrual data for its reports on the basis of an analysis of the documentation on hand. http://www.whitehouse.gov/omb/circulars_a110/ 7/20/2011 ://www.whitehouse.gov/omb/circulars_a110/ 7/20/2011 e equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an-engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. • • http://www.whitehouse.gov/omb/circulars a122_2004/ 8/17/2011 U1K(.;ULAK A-110 KLV1SLll 11/19/93 As Further Amended 9/3U/99 lne white riou... rage LL or Zy (2)Make information on forthcoming opportunities available and arrange time frames for purchases and contracts to encourage and facilitate participation by small businesses,minority-owned firms,and women's business enterprises. (3)Consider in the contract process whether firms competing for larger contracts intend to subcontract with small businesses,minority-owned firms,and women's business enterprises. (4)Encourage contracting with consortiums of small businesses,minority-owned firms and women's business enterprises when a contract is too large for one of these firms to handle individually. (5)Use the services and assistance,as appropriate,of such organizations as the Small Business Administration and the Department of Commerce's Minority Business Development Agency in the solicitation and utilization of small businesses,minority-owned firms and women's business enterprises. (c)The type of procuring instruments used(e.g.,fixed price contracts,cost reimbursable contracts,purchase orders, and incentive contracts)shall be determined by the recipient but shall be appropriate for the particular procurement and for promoting the best interest of the program or project involved.The"cost-plus-a-percentage-of-cost"or "percentage of construction cost"methods of contracting shall not be used. • (d)Contracts shall be made only with responsible contractors who possess the potential ability to perform successfully under the terms and conditions of the proposed procurement.Consideration shall be given.to such matters as contractor integrity,record of past performance,financial and technical resources or accessibility to other necessary resources.In certain circumstances.contracts with certain parties are restricted by agencies'implementation of E.O.s 12549 and 12689,"Debarment and Suspension." (e)Recipients shall,on request,make available for the Federal awarding agency,pm-award review and procurement • documents.such as request for proposals or invitations for bids,independent cost estimates,etc.,when any of the following conditions apply. • (1)A recipient's procurement procedures or operation fails to comply with the procurement standards in the Federal awarding agency's implementation of this Circular. (2)The procurement is expected to exceed the small purchase threshold fixed at 41 U.S.C.403(11)(currently $25,000)and is to be awarded without competition or only one bid or offer is received in response to a solicitation. (3)The procurement,which is expected to exceed the small purchase threshold,specifies a"brand name" product. (4)The proposed award over the small purchase threshold is to be awarded to other than the apparent low bidder under a sealed bid procurement. (5)A proposed contract modification changes the scope of a contract or increases the contract amount by more than the amount of the small purchase threshold. .45 Cost and price analysis.Some form of cost or price analysis shall be made and documented in the procurement files in connection with every procurement action.Price analysis may be accomplished in various ways, including the comparison of price quotations submitted,market prices and similar indicia,together with discounts.Cost analysis is the review and evaluation of each element of cost to determine reasonableness,allocability and allowability. • http://www.whitehouse.gov/omb/cireulars_a110/ 7/20/2011 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 be referred to such Federal,State or local authority as may have proper jurisdiction. _.42 Codes of conduct.The recipient shall maintain written standards of conduct governing the performance of its employees engaged in the award and administration of contracts.No employee,officer,or agent shall participate in 'the selection,award,or administration of a contract supported by Federal funds if a real or apparent conflict of interest would be involved.Such a conflict would arise when the employee,officer,or agent,any member of his or her immediate family,his or her partner,or an organization which employs or is about to employ any of the parties indicated herein,has a financial or other interest in the firm selected for an award.The officers,employees,and agents of the recipient shall neither solicit nor accept gratuities,favors,or anything of monetary value from contractors,or parties to subagreements.However,recipients may set standards for situations in which the financial interest is not /2 /2 11 http://www.whitehouse.gov/orb/circulars_a110/ 7 0 0 • (a)Federal awarding agencies shall require recipients to relate financial data to performance data and develop unit cost information whenever practical. (b)Recipients'financial management systems shall provide for the following. (1)Accurate,current and complete disclosure of the financial results of each federally-sponsored project or program in accordance with the reporting requirements set forth in Section_.52.If a Federal awarding agency requires reporting on an accrual basis from a recipient that maintains its records on other than an accrual basis, the recipient shall not be required to establish an accrual accounting system.These recipients may develop such accrual data for its reports on the basis of an analysis of the documentation on hand. http://www.whitehouse.gov/omb/circulars_a110/ 7/20/2011 ://www.whitehouse.gov/omb/circulars_a110/ 7/20/2011 e equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an-engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. • • http://www.whitehouse.gov/omb/circulars a122_2004/ 8/17/2011 CIRCULAR A-110 REVISED 11/19/93 As Further Amended 9/30/99 I The White Hou... Page 23 of 29 _.46 Procurement records.Procurement records and files for purchases in excess of the small purchase threshold shall include the following at a minimum:(a)basis for contractor selection,(b)justification for lack of competition when competitive bids or offers are not obtained,and(c)basis for award cost or pnce. _.47 Contract administration.A system for contract administration shall be maintained to ensure contractor conformance with the terms,conditions and specifications of the contract and to ensure adequate and timely follow up of all purchases.Recipients shall evaluate contractor performance and document,as appropriate,whether contractors have met the terms,conditions and specifications of the contract. 48 Contract provisions.The recipient shall include,in addition to provisions to define a sound and complete agreement,the following provisions in all contracts.The following provisions shall also be applied to subcontracts. (a)Contracts in excess of the small purchase threshold shall contain contractual provisions or conditions that allow for administrative,contractual,or legal remedies in instances in which a contractor violates or breaches the contract terms,and provide for such remedial actions as may be appropriate. (b)All contracts in excess of the small purchase threshold shall contain suitable provisions for termination by the recipient,including the manner by which termination shall be effected and the basis for settlement.In addition,such contracts shall describe conditions under which the contract may be terminated for default as well as conditions where the contract may be terminated because of circumstances beyond the control of the contractor. (c)Except as otherwise required by statute,an award that requires the contracting(or subcontracting)for construction or facility improvements shall provide for the recipient to follow Its own requirements relating to bid guarantees, performance bonds,and payment bonds unless the construction contract or subcontract exceeds$100,000.For those contracts or subcontracts exceeding$100,000,the Federal awarding agency may accept the bonding policy and requirements of the recipient,provided the Federal awarding agency has made a determination that the Federal Government's interest is adequately protected.If such a determination has not been made,the minimum requirements. shall be as follows. ' (1)A bid guarantee from each bidder equivalent to five percent of the bid price.The"bid guarantee"shall consist of a firm commitment such as a bid bond,certified check,or other negotiable instrument accompanying a bid as assurance that the bidder shall.upon acceptance of his bid,execute such contractual documents as may be required within the time specified. (2)A performance bond on the part of the contractor for 100 percent of the contract price.A"performance bond" is one executed in connection with a contract to secure fulfillment of all the contractor's obligations under such contract. (3)A payment bond on the part of the contractor for 100 percent of the contract price.A"payment bond"is one executed in connection with a contract to assure payment as required by statute of all persons supplying labor and material in the execution of the work provided for in the contract. (4)Where bonds are required in the situations described herein,the bonds shall be obtained from companies holding certificates of authority as acceptable sureties pursuant to 31 CFR part 223,"Surety Companies Doing Business with the United States." (d)All negotiated contracts(except those for less than the small purchase threshold)awarded by recipients shall include a provision to the effect that the recipient,the Federal awarding agency,the Comptroller General of the United States,or any of their duly authorized representatives,shall have access to any books,documents,papers and records of the contractor which are directly pertinent to a specific program for the purpose of making audits, examinations,excerpts and transcriptions. (e)All contracts,including small purchases,awarded by recipients and their contractors shall contain the procurement provisions of Appendix A to this Circular.as applicable. Reports and Records _.50 Purpose of reports and records.Sections_.51 through .53 set forth the procedures for monitoring and reporting on the recipient's financial and program perfommance and the necessary standard reporting forms.They also set forth record retention requirements. • _.51 Monitoring and reporting program performance. (a)Recipients are responsible for managing and monitoring each project,program,subaward.function or activity supported by the award.Recipients shall monitor subawards to ensure subrecipients have met the audit requirements as delineated in Section_.26. (b)The Federal awarding agency shall prescribe the frequency with which the performance reports shall be submitted. Except as provided in paragraph_.51(f),performance reports shall not be required more frequently than quarterly or,less frequently than annually.Annual reports shall be due 90 calendar days after the grant year:quarterly or semi- http://www.whitehouse.gov/omb/circulars_a110/ 7/20/2011 1)Accurate,current and complete disclosure of the financial results of each federally-sponsored project or program in accordance with the reporting requirements set forth in Section_.52.If a Federal awarding agency requires reporting on an accrual basis from a recipient that maintains its records on other than an accrual basis, the recipient shall not be required to establish an accrual accounting system.These recipients may develop such accrual data for its reports on the basis of an analysis of the documentation on hand. http://www.whitehouse.gov/omb/circulars_a110/ 7/20/2011 ://www.whitehouse.gov/omb/circulars_a110/ 7/20/2011 e equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an-engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. • • http://www.whitehouse.gov/omb/circulars a122_2004/ 8/17/2011 CIRCULAR A-110 REVISED 11/19/93 As Further Amended 9/30/99 I The White Hou... .I'age 24 of 29 annual reports shall be due 30 days after the reporting period.The Federal awarding agency may require annual reports before the anniversary dates of multiple year awards in lieu of these requirements.The final performance reports are due 90 calendar days after the expiration or termination of the award. (c)If inappropriate,a final technical or performance report shall not be required after completion of the project. (d)When required,performance reports shall generally contain,for each award,brief information on each of the following. (1)A comparison of actual accomplishments with the goals and objectives established for the period,the findings of the investigator,or both.Whenever appropriate and the output of programs or projects can be readily quantified,such quantitative data should be related to cost data for computation of unit costs. (2)Reasons why established 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. (f)Recipients shall immediately notify the Federal awarding agency of developments that have a significant impact on the award-supported activities.Also,notification shall be given in the case of problems,delays,or adverse conditions which materially impair the ability to meet the objectives of the award.This notification shall include a statement of the action taken or contemplated,and any assistance needed to resolve the situation. (g)Federal awarding agencies may make site visits,as needed. • (h)Federal awarding agencies shall comply with clearance requirements of 5 CFR part 1320 when requesting performance data from recipients. .52 Financial reporting. (a)The following forms or such other forms as may be approved by OMB are authorized for obtaining financial information from recipients. (1)SF-269 or SF-269A,Financial Status Report. (i)Each Federal awarding agency shall require recipients to use the SF-269 or SF-269A to report the status of funds for all nonconstruction projects or programs.A Federal awarding agency may,however,have the option of not requiring the SF-269 or SF-269A when the SF-270,Request for Advance or Reimbursement, or SF-272,Report of Federal Cash Transactions,is determined to provide adequate information to meet its needs,except that a final SF-269 or SF-269A shall be required at the completion of the project when the SF-270 is used only for advances. (ii)The Federal awarding agency shall prescribe whether the report shall be on a cash or accrual basis.If the Federal awarding agency requires accrual information and the recipient's accounting records are not normally kept on the accrual basis,the recipient shall not be required to convert its accounting system.but shall develop such accrual information through best estimates based on an analysis of the documentation on hand. (iii)The Federal awarding agency shall determine the frequency of the Financial Status Report for each project or program,considering the size and complexity of the particular project or program.However,the report shall not be required more frequently than quarterly or less frequently than annually.A final report shall be required at the completion of the agreement. (iv)The Federal awarding agency shall require recipients to submit the SF-269 or SF-269A(an original and no more than two copies)no later than 30 days after the end of each specified reporting period for quarterly and semi-annual reports,and 90 calendar days for annual and final reports..Extensions of reporting due dates may be approved by the Federal awarding agency upon request of the recipient. (2)SF-272,Report of Federal Cash Transactions. • http://www.whitehouse.gov/omb/circulars_a110/ 7/20/2011 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 perfommance and the necessary standard reporting forms.They also set forth record retention requirements. • _.51 Monitoring and reporting program performance. (a)Recipients are responsible for managing and monitoring each project,program,subaward.function or activity supported by the award.Recipients shall monitor subawards to ensure subrecipients have met the audit requirements as delineated in Section_.26. (b)The Federal awarding agency shall prescribe the frequency with which the performance reports shall be submitted. Except as provided in paragraph_.51(f),performance reports shall not be required more frequently than quarterly or,less frequently than annually.Annual reports shall be due 90 calendar days after the grant year:quarterly or semi- http://www.whitehouse.gov/omb/circulars_a110/ 7/20/2011 1)Accurate,current and complete disclosure of the financial results of each federally-sponsored project or program in accordance with the reporting requirements set forth in Section_.52.If a Federal awarding agency requires reporting on an accrual basis from a recipient that maintains its records on other than an accrual basis, the recipient shall not be required to establish an accrual accounting system.These recipients may develop such accrual data for its reports on the basis of an analysis of the documentation on hand. http://www.whitehouse.gov/omb/circulars_a110/ 7/20/2011 ://www.whitehouse.gov/omb/circulars_a110/ 7/20/2011 e equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an-engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. • • http://www.whitehouse.gov/omb/circulars a122_2004/ 8/17/2011 CIRCULAR A-110 REVISED 11/19/93 As Further Amended 9/30/99 I The White Hou... Page 25 of 29 (i)When funds are advanced to recipients the Federal awarding agency shall require each recipient to submit the SF-272 and,when necessary,its continuation sheet,SF-272a.The Federal awarding agency shall use this report to monitor cash advanced to recipients and to obtain disbursement information for each agreement with the recipients. (ii)Federal awarding agencies may require forecasts of Federal cash requirements in the"Remarks" section of the report. (iii)When practical and deemed necessary,Federal awarding agencies may require recipients to report in the"Remarks"section the amount of cash advances received in excess of three days.Recipients shall provide short narrative explanations of actions taken to reduce the excess balances. • • (iv)Recipients shall be required to submit not more than the original and two copies of the SF-272 15 calendar days following the end of each quarter.The Federal awarding agencies may require a monthly report from those recipients receiving advances totaling$1 million or more per year. (v)Federal awarding agencies may waive the requirement for submission of the SF-272 for any one of the following reasons:(1)When monthly advances do not exceed$25.000 per recipient,provided that such advances are monitored through other forms contained in this section:(2)If,in the Federal awarding agency's opinion,the recipient's accounting controls are adequate to minimize excessive Federal advances;or,(3)When the electronic payment mechanisms provide adequate data. (b)When the Federal awarding agency needs additional information or more frequent reports,the following shall be observed. (1)When additional information is needed to comply with legislative requirements,Federal awarding agencies shall issue instructions to require recipients to submit such information under the"Remarks"section of the reports. (2)When a Federal awarding agency determines that a recipient's accounting system does not meet the standards in Section .21,additional pertinent information to further monitor awards may be obtained upon written notice to the recipient until such time as the system is brought up to standard.The Federal awarding agency,in obtaining this information,shall comply with report clearance requirements of 5 CFR part 1320. . (3)Federal awarding agencies are encouraged to shade out any line item on any report if not necessary. (4)Federal awarding agencies may accept the identical information from the recipients in machine readable format or computer printouts or electronic outputs in lieu of prescribed formats. (5)Federal awardingagencies mayprovide computer or electronic outputs to recipients when such expedites or 9P contributes to the accuracy of reporting. ,53 Retention and access requirements for records. (a)This section sets forth requirements for record retention and access to records'for awards to recipients.Federal awarding agencies shall not impose any other record retention or access requirements upon recipients. (b)Financial records,supporting documents,statistical records,and all other records pertinent to an award shall be retained for a period of three years from the date of submission of the final expenditure report or,for awards that are renewed quarterly or annually,from the date of the submission of the quarterly or annual financial report,as authorized by the Federal awarding agency.The only exceptions are the following. (1)If any litigation,claim,or audit is started before the expiration of the 3-year period,the records shall be retained until all litigation,claims or audit findings involving the records have been resolved and final action taken. (2)Records for real property and equipment acquired with Federal funds shall be retained for 3 years after final disposition. (3)When records are transferred to or maintained by the Federal awarding agency,the 3-year retention requirement is not applicable to the recipient. http://www.whitehouse.gov/omb/circulars_a110/ 7/20/2011 tors 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 perfommance and the necessary standard reporting forms.They also set forth record retention requirements. • _.51 Monitoring and reporting program performance. (a)Recipients are responsible for managing and monitoring each project,program,subaward.function or activity supported by the award.Recipients shall monitor subawards to ensure subrecipients have met the audit requirements as delineated in Section_.26. (b)The Federal awarding agency shall prescribe the frequency with which the performance reports shall be submitted. Except as provided in paragraph_.51(f),performance reports shall not be required more frequently than quarterly or,less frequently than annually.Annual reports shall be due 90 calendar days after the grant year:quarterly or semi- http://www.whitehouse.gov/omb/circulars_a110/ 7/20/2011 1)Accurate,current and complete disclosure of the financial results of each federally-sponsored project or program in accordance with the reporting requirements set forth in Section_.52.If a Federal awarding agency requires reporting on an accrual basis from a recipient that maintains its records on other than an accrual basis, the recipient shall not be required to establish an accrual accounting system.These recipients may develop such accrual data for its reports on the basis of an analysis of the documentation on hand. http://www.whitehouse.gov/omb/circulars_a110/ 7/20/2011 ://www.whitehouse.gov/omb/circulars_a110/ 7/20/2011 e equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an-engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. • • http://www.whitehouse.gov/omb/circulars a122_2004/ 8/17/2011 U1KLULAK A-11U Kl V1Jbll 11/19/9i As rurtner Amended 9/3U/99 I me wnite Hou... rage Lo or zv (4)Indirect cost rate proposals,cost allocations plans,etc.as specified in paragraph_.53(g). (c)Copies of original records may be substituted for the original records if authorized by the Federal awarding agency. • (d)The Federal awarding agency shall request transfer of certain records to its custody from recipients when it • determines that the records possess long term retention value.However,in order to avoid duplicate recordkeeping,a Federal awarding agency may make arrangements for recipients to retain any records that are continuously needed for joint use. (e)The Federal awarding agency,the Inspector General,Comptroller General of the United States,or any of their duly authorized representatives,have the right of timely and unrestricted access to any books,documents,papers,or other records of recipients that are pertinent to the awards,in order to make audits,examinations,excerpts,transcripts and copies of such documents.This right also includes timelyand reasonable access to a recipient's personnel for the purpose of interview and discussion related to such documents.The rights of access in this paragraph are not limited to the required retention period,but shall last as long as records are retained. (t)Unless required by statute,no Federal awarding agency shall place restrictions on recipients that limit public access to the records of recipients that are pertinent to art award,except when the Federal awarding agency can demonstrate that such records shall be kept confidential and would have been exempted from disclosure pursuant to the Freedom of Information Act(5 U.S.C.552)if the records had belonged to the Federal awarding agency. (g)Indirect cost rate proposals,cost allocations plans,etc.Paragraphs(g)(1)and(g)(2)apply to the following types of documents,and their supporting records:indirect cost rate computations or proposals,cost allocation plans,and any similar accounting computations of the rate at which a particular group of costs is chargeable(such as computer usage chargeback rates or composite fringe benefit rates). (1)If submitted for negotiation.If the recipient submits to the Federal awarding agency or the subrecipient • submits to the recipient the proposal,plan,or other computation to form the basis for negotiation of the rate,then the 3-year retention period for its supporting records starts on the date of such submission. (2)If not submitted for negotiation.If the recipient is not required to submit to the Federal awarding agency or the subrecipient is not required to submit to the recipient the proposal,plan,or other computation for negotiation purposes,then the 3-year retention period for the proposal,plan,or other computation and its supporting records starts at the end of the fiscal year(or other accounting period)covered by the proposal,plan,or other computation. Termination and Enforcement _.60 Purpose of termination and enforcement.Sections_.61 and .62 set forth uniform suspension, termination and enforcement procedures. .61 Termination. (a)Awards may be terminated in whole or in part only if(1),(2)or(3)apply. (1)By the Federal awarding agency,if a recipient materially fails to comply with the terms and conditions of an award. (2)By the Federal awarding agency with the consent of the recipient,in which case the two parties shall agree upon the termination conditions,including the effective date and,in the case of partial termination,the portion to be terminated. (3)By the recipient upon sending to the Federal awarding agency written notification setting forth the reasons for such termination,the effective date,and,in the case of partial termination,the portion to be terminated. However,if the Federal awarding agency determines in the case of partial termination that the reduced or modified portion of the grant will not accomplish the purposes for which the grant was made,it may terminate the grant in its entirety under either paragraphs(a)(1)or(2). (b)If costs are allowed under an award,the responsibilities of the recipient referred to in paragraph .71(a), including those for property management as applicable,shall be considered in the termination of the award,and • provision shall be made for continuing responsibilities of the recipient after termination,as appropriate. .62 Enforcement. - http://www.whitehouse.gov/omb/circulars_a110/ 7/20/2011 ention requirements. • _.51 Monitoring and reporting program performance. (a)Recipients are responsible for managing and monitoring each project,program,subaward.function or activity supported by the award.Recipients shall monitor subawards to ensure subrecipients have met the audit requirements as delineated in Section_.26. (b)The Federal awarding agency shall prescribe the frequency with which the performance reports shall be submitted. Except as provided in paragraph_.51(f),performance reports shall not be required more frequently than quarterly or,less frequently than annually.Annual reports shall be due 90 calendar days after the grant year:quarterly or semi- http://www.whitehouse.gov/omb/circulars_a110/ 7/20/2011 1)Accurate,current and complete disclosure of the financial results of each federally-sponsored project or program in accordance with the reporting requirements set forth in Section_.52.If a Federal awarding agency requires reporting on an accrual basis from a recipient that maintains its records on other than an accrual basis, the recipient shall not be required to establish an accrual accounting system.These recipients may develop such accrual data for its reports on the basis of an analysis of the documentation on hand. http://www.whitehouse.gov/omb/circulars_a110/ 7/20/2011 ://www.whitehouse.gov/omb/circulars_a110/ 7/20/2011 e equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an-engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. • • http://www.whitehouse.gov/omb/circulars a122_2004/ 8/17/2011 CIRCULAR A-110 REVISED 11/19/93 As Further Amended 9/30/99 I The White Hou... Page 27 of 29 (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 matching credit for)all or part of the cost of the activity or action not in compliance. (3)Wholly or partly suspend or terminate the current award. (4)Withhold further awards for the project or program. (5)Take other remedies that may be legally available. (b)Hearings and appeals.In taking an enforcement action,the awarding agency shall provide the recipient an opportunity for hearing,appeal,or other administrative proceeding to which the recipient is entitled under any statute or regulation applicable to the action involved. (c)Effects of suspension and termination.Costs of a recipient resulting from obligations incurred by the recipient • during a suspension or after termination of an award are not allowable unless the awarding agency expressly authorizes them in the notice of suspension or termination or subsequently.Other recipient costs during suspension or after termination which are necessary and not reasonably avoidable are allowable if(1)and(2)apply. (1)The costs result from obligations which were properly incurred by the recipient before the effective date of suspension or termination,are not in anticipation of it,and in the case of a termination,are noncancellable.< (2)The costs would be allowable if the award were not suspended or expired normally at the end of the funding • period in which the termination takes effect. (d)Relationship to debarment and suspension.The enforcement remedies identified in this section,including suspension and termination,do not preclude a recipient from being subject to debarment and suspension under E.O.s 12549 and 12689 and the Federal awarding agency implementing regulations(see Section .13). SUBPART D•After-the-Award Requirements _.70 Purpose.Sections_.71 through_.73 contain closeout procedures and other procedures for subsequent disallowances and adjustments. 71 Closeout procedures. (a)Recipients shall submit,within 90 calendar days after the date of completion of the award,all financial, performance,and other reports as required by the terms and 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 unretumed amounts that become delinquent debts. (e)When authorized by the terms and conditions of the award,the Federal awarding agency shall make a settlement for any upward or downward adjustments to the Federal share of costs after closeout reports are received. (f)The recipient shall account for any real and personal property acquired with Federal funds or received from the Federal Government in accordance with Sections—31 through_.37. (g)In the event a final audit has not been performed prior to the closeout of an award,the Federal awarding agency shall retain the right to recover an appropriate amount after fully considering the recommendations on disallowed costs resulting from the final audit, _.72 Subsequent adjustments and continuing responsibilities. http://wwvv.whitehouse.gov/omb/circulars_a110/ 7/20/2011 ppropriate. .62 Enforcement. - http://www.whitehouse.gov/omb/circulars_a110/ 7/20/2011 ention requirements. • _.51 Monitoring and reporting program performance. (a)Recipients are responsible for managing and monitoring each project,program,subaward.function or activity supported by the award.Recipients shall monitor subawards to ensure subrecipients have met the audit requirements as delineated in Section_.26. (b)The Federal awarding agency shall prescribe the frequency with which the performance reports shall be submitted. Except as provided in paragraph_.51(f),performance reports shall not be required more frequently than quarterly or,less frequently than annually.Annual reports shall be due 90 calendar days after the grant year:quarterly or semi- http://www.whitehouse.gov/omb/circulars_a110/ 7/20/2011 1)Accurate,current and complete disclosure of the financial results of each federally-sponsored project or program in accordance with the reporting requirements set forth in Section_.52.If a Federal awarding agency requires reporting on an accrual basis from a recipient that maintains its records on other than an accrual basis, the recipient shall not be required to establish an accrual accounting system.These recipients may develop such accrual data for its reports on the basis of an analysis of the documentation on hand. http://www.whitehouse.gov/omb/circulars_a110/ 7/20/2011 ://www.whitehouse.gov/omb/circulars_a110/ 7/20/2011 e equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an-engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. • • http://www.whitehouse.gov/omb/circulars a122_2004/ 8/17/2011 LIKUULAK A-11U KLVlhhll 11/19/93 As Further Amended 9/-3U/99 1 1 he White Hou... !'age 26 ot 29 (a)The closeout of an award does not affect any of the following. (1)The right of the Federal awarding agency to disallow costs and recover funds on the basis of a later audit or other review. (2)The obligation of the recipient to return any funds due as a result of later refunds,corrections,or other transactions. (3)Audit requirements in Section_.26. • (4)Property management requirements in Sections_.31 through_.37. (5)Records retention as required in Section .53. (b)After closeout of an award.a relationship created 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 ot amounts due. (a)Any funds paid to a recipient in excess of the amount to which the recipient is finally determined to be entitled under the terms and conditions of the award constitute a debt to the Federal Government.If not paid within a reasonable period after the demand for payment,the Federal awarding agency may reduce the debt by(1),(2)or(3). (1)Making an administrative offset against other requests for reimbursements. (2)Withholding advance payments otherwise due to the recipient. (3)Taking other action permitted by statute. (b)Except as otherwise provided by law,the Federal awarding agency shall charge interest on an overdue debt in accordance with 4 CFR Chapter II,"Federal Claims Collection Standards." Appendix A Contract Provisions • All contracts,awarded by a recipient including small purchases,shall contain the following provisions as applicable: 1.Equal Employment Opportunity-All contracts shall contain a provision requiring compliance with E.O 11246, "Equal Employment Opportunity,"as amended by E.O.11375,"Amending Executive Order 11246 Relating to Equal Employment Opportunity,"and as supplemented by regulations at 41 CFR part 60,"Office of Federal Contract Compliance Programs,Equal Employment Opportunity,Department of Labor." 2.Copeland"Anti-Kickback"Act(18 U.S.C.874 and 40 U.S.C.276c)-All contracts and subgrants in excess of $2000 for construction or repair awarded by recipients and subrecipients shall include a provision for compliance with the Copeland"Anti-Kickback"Act(18 U.S.C.874),as supplemented by Department of Labor regulations(29 CFR part 3,"Contractors and Subcontractors on Public Building or Public Work Financed in Whole or in Part by Loans or Grants from the United States").The Act provides that each contractor or subrecipient shall be prohibited from inducing,by any means,any person employed in the construction,completion,or repair of public work,to give up any part of the • compensation to which he is otherwise entitled.The recipient shall report all suspected or reported violations to the Federal awarding agency. 3.Davis-Bacon Act,as amended(40 U.S.C.276a to a-7)-When required by Federal program legislation,all construction contracts awarded by the recipients and subrecipients of more than$2000 shall include a provision for compliance with the Davis-Bacon Act(40 U.S.C.276a to a-7)and as supplemented by Department of Labor regulations(29 CFR part 5,"Labor Standards Provisions Applicable to Contracts Governing Federally Financed and Assisted Construction").Under this Act,contractors shall be required to pay wages to laborers and mechanics at a rate not less than the minimum wages specified in a wage determination made by the Secretary of Labor.In addition, contractors shall be required to pay wages not less than once a week.The recipient shall place a copy of the current prevailing wage determination issued by the Department of Labor in each solicitation and the award of a contract shall be conditioned upon the acceptance of the wage determination.The recipient shall report all suspected or reported violations to the Federal awarding agency. http://www.whitehouse.gov/omb/circulars_a 110/ 7/20/2011 esulting from the final audit, _.72 Subsequent adjustments and continuing responsibilities. http://wwvv.whitehouse.gov/omb/circulars_a110/ 7/20/2011 ppropriate. .62 Enforcement. - http://www.whitehouse.gov/omb/circulars_a110/ 7/20/2011 ention requirements. • _.51 Monitoring and reporting program performance. (a)Recipients are responsible for managing and monitoring each project,program,subaward.function or activity supported by the award.Recipients shall monitor subawards to ensure subrecipients have met the audit requirements as delineated in Section_.26. (b)The Federal awarding agency shall prescribe the frequency with which the performance reports shall be submitted. Except as provided in paragraph_.51(f),performance reports shall not be required more frequently than quarterly or,less frequently than annually.Annual reports shall be due 90 calendar days after the grant year:quarterly or semi- http://www.whitehouse.gov/omb/circulars_a110/ 7/20/2011 1)Accurate,current and complete disclosure of the financial results of each federally-sponsored project or program in accordance with the reporting requirements set forth in Section_.52.If a Federal awarding agency requires reporting on an accrual basis from a recipient that maintains its records on other than an accrual basis, the recipient shall not be required to establish an accrual accounting system.These recipients may develop such accrual data for its reports on the basis of an analysis of the documentation on hand. http://www.whitehouse.gov/omb/circulars_a110/ 7/20/2011 ://www.whitehouse.gov/omb/circulars_a110/ 7/20/2011 e equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an-engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. • • http://www.whitehouse.gov/omb/circulars a122_2004/ 8/17/2011 CIRCULAR A-110 REVISED 11/19/93 As Further Amended 9/30/99 1 The White Hou... Page 29 of 29 4.Contract Work Hours and Safety Standards Act(40 U.S.C.327-333)-Where applicable,all contracts awarded by recipients in excess of$2000 for construction contracts and in excess of$2500 for other contracts that involve the employment of mechanics or laborers shall include a provision for compliance with Sections 102 and 107 of the Contract Work Hours and Safety Standards Act(40 U.S.C.327-333),as supplemented by Department of Labor regulations(29 CFR part 5).Under Section 102 of the Act,each contractor shall be required to compute the wages of every mechanic and laborer on the basis of a standard work week of 40 hours.Work in excess of the standard work week is permissible provided that the worker is compensated at a rate of not less than 1%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 be required to work in surroundings or under working conditions which are unsanitary,hazardous or dangerous.These requirements do not apply to the purchases of supplies or materials or articles ordinarily available on the open market,or contracts for transportation or transmission of intelligence. 5.Rights to Inventions Made Under a Contract or Agreement-Contracts or agreements for the performance of experimental,developmental,or research work shall provide for the rights of the Federal Government and the recipient in any resulting invention in accordance with 37 CFR part 401,"Rights to Inventions Made by Nonprofit Organizations and Small Business Firms Under Government Grants,Contracts and Cooperative Agreements,"and any implementing regulations issued by the awarding agency. 6.Clean Air Act(42 U.S.C.7401 et seq.)and the Federal Water Pollution Control Act(33 U.S.C.1251 et seq.), as amended-Contracts and subgrants of amounts in excess of$100,000 shall contain a provision that requires the recipient to agree to comply with all applicable standards,orders or regulations issued pursuant to the Clean Air Act (42 U.S.C.7401 et seq.)and the Federal Water Pollution Control Act as amended(33 U.S.C.1251 et seq.).Violations shall be reported to the Federal awarding agency and the Regional Office of the Environmental Protection Agency (EPA). 7.Byrd Anti-Lobbying Amendment(31 U.S.C.1352)-Contractors who apply or bid for an award of$100,000 or more shall file the required certification.Each tier certifies to the tier above that it will not and has not used Federal appropriated funds to pay any person or organization for influencing or attempting to influence an officer or employee of any agency,a member of Congress,officer or employee of Congress,or an employee of a member of Congress in connection with obtaining any Federal contract,grant or any other award covered by 31 U.S.C.1352.Each tier shall also disclose any lobbying with non-Federal funds that takes place in connection with obtaining any Federal award. Such disclosures are forwarded from tier to tier up to the recipient. 8.Debarment and Suspension(E.O.s 12549 and 12689)-No contrail shall be made to parties listed on the General Services Administration's List of Parties Excluded from Federal Procurement or Nonprocurement Programs in accordance with E.O.s 12549 and 12689,"Debarment and Suspension."This list contains the names of parties debarred,suspended,or otherwise excluded by agencies,and contractors declared ineligible under statutory or regulatory authority other than E.O.12549.Contractors with awards that exceed the small purchase threshold shall provide the required certification regarding its exclusion status and that of its principal employees. Top of Page W ?. \ -1 [ 'FF' X:: 0 ?ici . G0V Err rsparrol I Accessibility I Copyright Inrorrrnnhon Privacy Policy i Contact USA goy !Subscribe In RSS Feeds Apply for a Job http://www.whitehouse.gov/omb/circulars_a110/ 7/20/2011 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_a 110/ 7/20/2011 esulting from the final audit, _.72 Subsequent adjustments and continuing responsibilities. http://wwvv.whitehouse.gov/omb/circulars_a110/ 7/20/2011 ppropriate. .62 Enforcement. - http://www.whitehouse.gov/omb/circulars_a110/ 7/20/2011 ention requirements. • _.51 Monitoring and reporting program performance. (a)Recipients are responsible for managing and monitoring each project,program,subaward.function or activity supported by the award.Recipients shall monitor subawards to ensure subrecipients have met the audit requirements as delineated in Section_.26. (b)The Federal awarding agency shall prescribe the frequency with which the performance reports shall be submitted. Except as provided in paragraph_.51(f),performance reports shall not be required more frequently than quarterly or,less frequently than annually.Annual reports shall be due 90 calendar days after the grant year:quarterly or semi- http://www.whitehouse.gov/omb/circulars_a110/ 7/20/2011 1)Accurate,current and complete disclosure of the financial results of each federally-sponsored project or program in accordance with the reporting requirements set forth in Section_.52.If a Federal awarding agency requires reporting on an accrual basis from a recipient that maintains its records on other than an accrual basis, the recipient shall not be required to establish an accrual accounting system.These recipients may develop such accrual data for its reports on the basis of an analysis of the documentation on hand. http://www.whitehouse.gov/omb/circulars_a110/ 7/20/2011 ://www.whitehouse.gov/omb/circulars_a110/ 7/20/2011 e equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an-engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. • • http://www.whitehouse.gov/omb/circulars a122_2004/ 8/17/2011 • • Memorandum To: Bob Manners From: Don Seten Date: 7/20/2011 Re: Section 504 Request Please prepare the Section 504 form based on the information below. Return the form to me to be placed in the file. Thanks! SECTION 504 REQUEST Owner Name: Habitat for Humanity of Omaha,Inc. Property Address: 3875 Decatur,3830 Franklin,3832 Franklin, 3844 Seward,and 3848 Seward (An NSP3 Project) Number of Units: 5 (homebuyer units; new construction) Single Family ® Multi Family ❑ C: File 1 () = 4- 7 BCD `` .• p, ' -AD p , , p, • '-' A(• c� a `b �O``s o 2 `n a' f ' 'bO `° 7� Et) CD CD CD 0 'C AD UQ rn CD Ao En kC . CD A3 Cn 1 x Z $ - MEMORANDUM TO FILE RE: SECTION 504 ACCESSIBILITY REQUIREMENTS PROJECT: ' Habitat for Humanity of Omaha, Inc. 3875 Decatur St., 3830 Franklin St., 3832 Franklin St., 3844 Seward St., and 3848 Seward St. Omaha,Ne. 68104 Omaha Habitat New Housing Program The above named project is not exempt from Section 504 Accessibility Requirements. Accessibility modifications required: X The above named project is exempt from Section 504 Accessibility Requirements for the following reason(s): Single family property 7Cc Ed Dantz er, Develop ection Manager Dat Robert Manners, Section 504 Officer Date 7 BCD `` .• p, ' -AD p , , p, • '-' A(• c� a `b �O``s o 2 `n a' f ' 'bO `° 7� Et) CD CD CD 0 'C AD UQ rn CD Ao En kC . CD A3 Cn 1 x Z $ - CIRCULAR NO. A-122 Revised May 10, 2004 I The White House Page 1 .of 30 Get Email Iipdai s ' Contact Us Horne•TheAdnunistration•Office ofManage nentand Budget Search OMB Search • Office Manaver cn.L an.d Budget gel About I OMB Blog I The Budget I Management ( Regulation&Information Policy I Legislative information I Join OMB I Contact OMB • ABOUT Leadership 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 • RSS Feeds 1.Purpose.This Circular establishes principles for determining costs of grants,contracts and other agreements with Intellectual Property non-profit organizations.It does not apply to colleges and universities which are covered by Office of Management and Agency Info Budget(OMB)Circular A-21,"Cost Principles for Educational Institutions":State,local,and federally recognized Indian tribal governments which are covered by OMB Circular A-87,"Cost Principles for State,Local,and Indian Tribal Bulletins • 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 Local accomplished through arbitrary limitations on individual cost elements by Federal agencies.Provision for profit or other Governments increment above cost is outside the scope of this Circular. Educational and Non- Profit Institutions 2.Supersession.This Circular supersedes cost principles issued by individual agencies for non-profit organizations. Federal Procurement Federal Financial 3.Applicability. Management Federal Information a. These principles shall be used by all Federal agencies in determining the costs of work performed by non-profit Resources/Data organizations under grants,cooperative agreements,cost reimbursement contracts.and other contracts in which Collection costs are used in pricing,administration,or 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 not required to account to the Federal Memoranda Government for actual costs incurred. Privacy Guidance Reports b. 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 FOIA 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 primarily for scientific,educational,service,charitable,or similar purposes in the public interest; (2)is not organized primarily for profit:and (3)uses its net proceeds to maintain,improve,and/or expand its operations.For this purpose,the term"non- profit organization"excludes(i)colleges and universities;(ii)hospitals;(it)State,local,and federally • recognized Indian tribal governments;and(iv)those non-profit organizations which are excluded from coverage of this Circular in accordance with paragraph 5. b. Prior approval means securing the awarding agency's permission in advance to incur cost for those items that are designated as requiring prior approval by the Circular.Generally this permission will be in writing.Where an item of cost requiring prior approval is specified in the budget of an award,approval of the budget constitutes approval of that cost. 5.Exclusion of some non-profit organizations.Some non-profit organizations,because of their size and nature of operations,can be considered to be similar to commercial concerns for purpose of applicability of cost principles.Such non-profit organizations shall operate under Federal cost principles applicable to commercial concerns.A listing of these organizations is contained in Attachment C.Other organizations may be added from time to time. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 gency shall prescribe the frequency with which the performance reports shall be submitted. Except as provided in paragraph_.51(f),performance reports shall not be required more frequently than quarterly or,less frequently than annually.Annual reports shall be due 90 calendar days after the grant year:quarterly or semi- http://www.whitehouse.gov/omb/circulars_a110/ 7/20/2011 1)Accurate,current and complete disclosure of the financial results of each federally-sponsored project or program in accordance with the reporting requirements set forth in Section_.52.If a Federal awarding agency requires reporting on an accrual basis from a recipient that maintains its records on other than an accrual basis, the recipient shall not be required to establish an accrual accounting system.These recipients may develop such accrual data for its reports on the basis of an analysis of the documentation on hand. http://www.whitehouse.gov/omb/circulars_a110/ 7/20/2011 ://www.whitehouse.gov/omb/circulars_a110/ 7/20/2011 e equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an-engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. • • http://www.whitehouse.gov/omb/circulars a122_2004/ 8/17/2011 U1KUULAR NO. A-122 Revised May 10, 2004 ( The White House Page 2 of 30 6.Responsibilities.Agencies responsible for administering programs that involve awards to non-profit organizations shall implement the provisions of this Circular.Upon request,implementing instruction shall be furnished to OMB. Agencies shall designate a liaison official to serve as the agency representative on matters relating to the implementation of this Circular.The name and title of such representative shall be furnished to OMB within 30 days of the date of this Circular. 7.Attachments.The principles and related policy guides are set forth in the following Attachments: Attachment A-General Principles Attachment B-Selected Items of Cost Attachment C-Non-Profit Organizations Not Subject To This Circular 8.Requests for exceptions.OMB may grant exceptions to the requirements of this Circular when permissible under existing law.However.in the interest of achieving maximum uniformity.exceptions will be permitted only in highly unusual circumstances. 9.Effective Date.The provisions of this Circular are effective immediately.Implementation shall be phased in by incorporating the provisions into new awards made after the start of the organization's next fiscal year.For existing awards,the new principles may be applied if an organization and the cognizant Federal agency agree.Earlier implementation.or a delay in implementation of individual provisions,is also permitted by mutual agreement between an organization and the cognizant Federal agency. 10.Inquiries.Further information concerning this Circular may be obtained by contacting the Office of Federal Financial Management,OMB,Washington,DC 20503,telephone(202)395-3993. Attachments ATTACHMENT A Circular No.A-122 GENERAL PRINCIPLES • Table of Contents A.Basic Considerations 1. Composition of total costs 2. Factors affecting allowability of costs 3. Reasonable costs 4. Allocable costs 5. Applicable credits 6. Advance understandings • 7. Conditional exemptions B.Direct Costs C.Indirect Costs • D.Allocation of Indirect Costs and Determination of Indirect Cost Rates 1. General 2. Simplified allocation method - 3. Multiple allocation base method 4. Direct allocation method 5. Special indirect cost rates E.Negotiation and Approval of Indirect Cost Rates 1. Definitions 2. Negotiation and approval of rates ATTACHMENT A Circular No.A-122 GENERAL PRINCIPLES • http://www.whitehouse.gov/omb/circulars al 22_2004/ 7/20/2011 Government for actual costs incurred. Privacy Guidance Reports b. 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 FOIA 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 primarily for scientific,educational,service,charitable,or similar purposes in the public interest; (2)is not organized primarily for profit:and (3)uses its net proceeds to maintain,improve,and/or expand its operations.For this purpose,the term"non- profit organization"excludes(i)colleges and universities;(ii)hospitals;(it)State,local,and federally • recognized Indian tribal governments;and(iv)those non-profit organizations which are excluded from coverage of this Circular in accordance with paragraph 5. b. Prior approval means securing the awarding agency's permission in advance to incur cost for those items that are designated as requiring prior approval by the Circular.Generally this permission will be in writing.Where an item of cost requiring prior approval is specified in the budget of an award,approval of the budget constitutes approval of that cost. 5.Exclusion of some non-profit organizations.Some non-profit organizations,because of their size and nature of operations,can be considered to be similar to commercial concerns for purpose of applicability of cost principles.Such non-profit organizations shall operate under Federal cost principles applicable to commercial concerns.A listing of these organizations is contained in Attachment C.Other organizations may be added from time to time. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 gency shall prescribe the frequency with which the performance reports shall be submitted. Except as provided in paragraph_.51(f),performance reports shall not be required more frequently than quarterly or,less frequently than annually.Annual reports shall be due 90 calendar days after the grant year:quarterly or semi- http://www.whitehouse.gov/omb/circulars_a110/ 7/20/2011 1)Accurate,current and complete disclosure of the financial results of each federally-sponsored project or program in accordance with the reporting requirements set forth in Section_.52.If a Federal awarding agency requires reporting on an accrual basis from a recipient that maintains its records on other than an accrual basis, the recipient shall not be required to establish an accrual accounting system.These recipients may develop such accrual data for its reports on the basis of an analysis of the documentation on hand. http://www.whitehouse.gov/omb/circulars_a110/ 7/20/2011 ://www.whitehouse.gov/omb/circulars_a110/ 7/20/2011 e equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an-engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. • • http://www.whitehouse.gov/omb/circulars a122_2004/ 8/17/2011 CIRCULAR NO. A-122 Revised May 10, 2004 I The White House Page 3 of 30 A.Basic Considerations 1.Composition of total costs.The total cost of an award is the sum of the allowable direct and allocable indirect costs less any applicable credits. 2.Factors affecting allowability of costs.To be allowable under an award,costs must meet the following general criteria: a. Be reasonable for the performance of the award and be allocable thereto under these principles. b. Conform to any limitations or exclusions set forth in these principles or in the award as to types or amount of cost items. c. Be consistent with policies and procedures that apply uniformly to both federally financed and other activities of the organization. d. Be accorded consistent treatment. e. Be determined in accordance with generally accepted accounting principles(GAAP). • f. Not be included as a cost or used to meet cost sharing or matching requirements of any other federally financed program in either the,current or a prior period. g. Be adequately documented. 3.Reasonable costs.A cost is reasonable if,in its nature or amount,it does not exceed that which would be incurred by a prudent person under the circumstances prevailing at the time the decision was made to incur the costs.The question of the reasonableness of specific costs must be scrutinized with particular care in connection with organizations or separate divisions thereof which receive the preponderance of their support from awards made by Federal agencies.In determining the reasonableness of a given cost,consideration shall be given to: a. Whether the cost is of a type generally recognized as ordinary and necessary for the operation of the organization or the performance of the award. 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•Governmeni. d. Significant deviations from the established practices of the organization which may unjustifiably increase the award costs. 4.Allocable costs. a. A cost is allocable to a particular cost objective,such as a grant,contract,project,service,or other activity,in accordance with the relative benefits received.A cost is allocable to a Federal award if it is treated consistently with other costs incurred for the same purpose in like circumstances and if it: (1)Is incurred specifically for the award. (2)Benefits both the award and other work and can be distributed in reasonable proportion to the benefits received, or (3)Is necessary to the overall operation of the organization,although a direct relationship to any particular cost objective cannot be shown. b. Any cost allocable to a particular award or other cost objective under these principles may not be shifted to other Federal awards to overcome funding deficiencies,or to avoid restrictions imposed by law or by the terms of the award. 5.Applicable credits. a. The term applicable credits refers to those receipts,or reduction of expenditures which operate to offset or reduce expense items that are allocable to awards as direct or indirect costs.Typical examples of such transactions are: purchase discounts,rebates or allowances,recoveries or indemnities on losses,insurance refunds,and adjustments of overpayments or erroneous charges.To the extent that such credits accruing or received by the organization relate to allowable cost,they shall be credited to the Federal Government either as a cost reduction or cash refund,as appropriate. http://www.whitehouse.gov/omb/circulars_aI 22_2004/ 7/20/2011 organizations which are excluded from coverage of this Circular in accordance with paragraph 5. b. Prior approval means securing the awarding agency's permission in advance to incur cost for those items that are designated as requiring prior approval by the Circular.Generally this permission will be in writing.Where an item of cost requiring prior approval is specified in the budget of an award,approval of the budget constitutes approval of that cost. 5.Exclusion of some non-profit organizations.Some non-profit organizations,because of their size and nature of operations,can be considered to be similar to commercial concerns for purpose of applicability of cost principles.Such non-profit organizations shall operate under Federal cost principles applicable to commercial concerns.A listing of these organizations is contained in Attachment C.Other organizations may be added from time to time. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 gency shall prescribe the frequency with which the performance reports shall be submitted. Except as provided in paragraph_.51(f),performance reports shall not be required more frequently than quarterly or,less frequently than annually.Annual reports shall be due 90 calendar days after the grant year:quarterly or semi- http://www.whitehouse.gov/omb/circulars_a110/ 7/20/2011 1)Accurate,current and complete disclosure of the financial results of each federally-sponsored project or program in accordance with the reporting requirements set forth in Section_.52.If a Federal awarding agency requires reporting on an accrual basis from a recipient that maintains its records on other than an accrual basis, the recipient shall not be required to establish an accrual accounting system.These recipients may develop such accrual data for its reports on the basis of an analysis of the documentation on hand. http://www.whitehouse.gov/omb/circulars_a110/ 7/20/2011 ://www.whitehouse.gov/omb/circulars_a110/ 7/20/2011 e equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an-engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. • • http://www.whitehouse.gov/omb/circulars a122_2004/ 8/17/2011 CIRCULAR NO. A-122 Revised May 10, 2004 I The White House Page 4 of 30 1 b. In some instances.the amounts received from the Federal Government to finance organizational activities or • service operations should be treated as applicable credits.Specifically,the concept of netting such credit items against related expenditures should be applied by the organization in determining the rates or amounts to be charged to Federal awards for services rendered whenever the facilities or other resources used in providing such services have been financed directly,in whole or in part,by Federal funds. c. For rules covering program income(i.e.,gross income earned from federally supported activities)see Sec._.24 of Office of Management and Budget(OMB)Circular A-110,"Uniform Administrative Requirements for Grants and Agreements with Institutions of Higher Education.Hospitals,and Other Non-Profit Organizations." 6.Advance understandings.Under any given award,the reasonableness and allocability of certain items of costs may be difficult to determine.This is particularly true in connection with organizations that receive a preponderance of their support from Federal agencies.In order to avoid subsequent disallowance or dispute based on unreasonableness or nonallocability,it is often desirable to seek a written agreement with the cognizant or awarding agency in advance of the incurrence of special or unusual costs.The absence of an advance agreement on any element of cost will not,in itself.affect the reasonableness or allocability of that element. 7.Conditional exemptions. a. OMB authorizes conditional exemption from OMB administrative requirements and cost principles circulars for certain Federal programs with statutorily-authorized consolidated planning and consolidated administrative funding, that are identified by a Federal agency and approved by the head of the Executive department or establishment.A Federal agency shall consult with OMB during its consideration of whether to grant such an exemption. • b. To promote efficiency in State and local program administration,when Federal non-entitlement programs with common purposes have specific statutorily-authorized consolidated planning and consolidated administrative funding and where most of the State agency's resources come from non-Federal sources,Federal agencies may exempt these covered State-administered,non-entitlement grant programs from certain OMB grants management requirements.The exemptions would be from all but the allocability of costs provisions of OMB Circulars A-87 (Attachment A,subsection C.3),"Cost Principles for State,Local,and Indian Tribal Governments,"A-21(Section C, subpart 4),"Cost Principles for Educational Institutions,"and A-122(Attachment A,subsection A.4),"Cost Principles for Non-Profit Organizations,"and from all of the administrative requirements provisions of OMB Circular A-110,"Uniform Administrative Requirements for Grants and Agreements with Institutions of Higher Education, Hospitals,and Other Non-Profit Organizations,"and the agencies'grants management common rule. c. When a Federal agency provides this flexibility,as a prerequisite toe State's exercising this option,a State must adopt its own written fiscal and administrative requirements for expending and accounting for all funds,which are consistent with the provisions of OMB Circular A-87,and extend such policies to all subrecipients.These fiscal and administrative requirements must be sufficiently specific to ensure that:funds are used in compliance with all applicable Federal statutory and regulatory provisions,costs are reasonable and necessary for operating these programs,and funds are not be used for general expenses required to carry out other responsibilities of a State or its subrecipients. B.Direct Costs 1.Direct costs are those that can be identified specifically with a particular final cost objective,i.e.,a particular award, project,service,or other direct activity of an organization.However,a cost may not be assigned to an award as a direct cost if any other cost incurred for the same purpose,in like circumstance,has been allocated to an award as an indirect cost.Costs identified specifically with awards are direct costs of the awards and are to be assigned directly thereto.Costs identified specifically with other final cost objectives of the organization are direct costs of those'cost objectives and are not to be assigned to other.awards directly or indirectly. • • 2.Any direct cost of a minor amount may be treated as an indirect cost for reasons of practicality where the accounting • treatment for such cost is consistently applied to all final cost objectives. • 3.The cost of certain activities are not allowable as charges to Federal awards(see,for example,fundraising costs in paragraph 17 of Attachment B).However,even though these costs are unallowable for purposes of computing charges to Federal awards,'they nonetheless must be treated as direct costs for purposes of determining indirect cost rates and be allocated their share of the organization's indirect costs if they represent activities which(1)include the salaries of personnel,(2)occupy space,and(3)benefit from the organization's indirect costs. 4.The costs of activities performed primarily as a service to members,clients,or the general public when significant and necessary to the organization's mission must be treated as direct costs whether or not allowable and be allocated an equitable share of indirect costs.Some examples of these types of activities include: • a. Maintenance of membership rolls,subscriptions,publications,and related functions. b. Providing services and infomiation to members,legislative or administrative bodies,or the public. c. Promotion,lobbying,and other forms of public relations. http://www.whitehouse.gov/omb/circulars_al 22_2004/ 7/20/2011 nt and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an-engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. • • http://www.whitehouse.gov/omb/circulars a122_2004/ 8/17/2011 CIRCULAR NO. A-122 Revised May 10, 2004 I The White House Page 5 of 30 • d. Meetings and conferences except those held to conduct the general administration of the organization. e. Maintenance,protection,and investment of special funds not used in operation of the organization f. Administration of group benefits on behalf of members or clients,including life and hospital insurance,annuity or retirement plans,financial aid.etc. C.Indirect Costs 1.Indirect costs are those that have been incurred for common or joint objectives and cannot be readily identified with a particular final cost objective.Direct cost of minor amounts may be treated as indirect costs under the conditions described in subparagraph 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.However,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,and accounting. 3.Indirect costs shall be classified within two broad categories:"Facilities"and"Administration.""Facilities"is defined as depreciation and use allowances on buildings,equipment and capital improvement,interest on debt associated with certain buildings,equipment and capital improvements,and operations and maintenance expenses."Administration"is defined as general administration and general expenses such as the director's office,accounting,personnel,library expenses and all other types of expenditures not listed specifically under one of the subcategories of "Facilities"(including cross allocations from other pools,where applicable).See indirect cost rate reporting requirements in subparagraphs D.2.e and D.3.g. D.Allocation of Indirect Costs and Determination of Indirect Cost Rates 1.General. a. Where a non-profit organization has only one major function,or where all its major functions benefit from its indirect costs to approximately the same degree,the allocation of indirect costs and the computation of an indirect cost rate may be accomplished through simplified allocation procedures,as described in subparagraph 2. • b. Where an organization has several major functions which benefit from its indirect costs in varying degrees. allocation of indirect costs may require the accumulation of such costs into separate cost groupings which then are allocated individually to benefiting functions by means of a base Which best measures the relative degree of benefit.The indirect costs allocated to each function are then distributed to individual awards and other activities included in that function by means of an indirect cost rate(s). c. The determination of what constitutes an organization's major functions will depend on its purpose in being:the types of services it renders to the public,its clients,and its members;and the amount of effort it devotes to such activities as fundraising,public information and membership activities. d. Specific methods for allocating indirect costs and computing indirect cost rates along with the conditions under • • which each method should be used are described in subparagraphs 2 through 5. e. The base period for the allocation of indirect costs is the period in which such costs are incurred and accumulated for allocation to work performed in that period.The base period normally.should coincide with the organization's fiscal year but,in any event,shall be so selected as to avoid inequities in the allocation of the costs. 2.Simplified allocation method. a. Where an organization's major functions benefit from its indirect costs to approximately the same degree,the allocation of indirect costs may be accomplished by(i)separating the organization's total costs for the base period as either direct or indirect,and(ii)dividing the total allowable indirect costs(net of applicable credits)by an equitable distribution base.The result of this process is an indirect cost rate which is used to distribute indirect • costs to individual awards.The rate should be expressed as the percentage which the total amount of allowable indirect costs bears to the base selected.This method should also be used where an organization has only one major function encompassing a number of individual projects or activities,and may be used where the level of Federal awards to an organization is relatively small. b. Both the direct costs and the indirect costs shall exclude capital expenditures and unallowable costs.However, unallowable costs which represent activities must be included in the direct costs under the conditions described in subparagraph B.3. htt ://www.whitehouse. ov/omb/circulars a122 2004/ 7/20/2011 P g _ — med primarily as a service to members,clients,or the general public when significant and necessary to the organization's mission must be treated as direct costs whether or not allowable and be allocated an equitable share of indirect costs.Some examples of these types of activities include: • a. Maintenance of membership rolls,subscriptions,publications,and related functions. b. Providing services and infomiation to members,legislative or administrative bodies,or the public. c. Promotion,lobbying,and other forms of public relations. http://www.whitehouse.gov/omb/circulars_al 22_2004/ 7/20/2011 nt and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an-engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. • • http://www.whitehouse.gov/omb/circulars a122_2004/ 8/17/2011 • LIKLULAK NU. A-122 Kevised May 10, 2004 I The White House Page 6 of 30 c. The distribution base may be total direct costs(excluding capital expenditures and other distorting items,such as major subcontracts or subgrants),direct salaries and wages,or other base which results in an equitable distribution.The distribution base shall generally exclude participant support costs as defined in paragraph 32 of Attachment B. d. Except where a special rate(s)is required in accordance with subparagraph 5,the indirect cost rate developed under the above principles is applicable to all awards at the organization.If a special rate(s)is required,appropriate modifications shall be made in order to develop the special rate(s). e. For an organization that receives more than$10 million in Federal funding of direct costs in a fiscal year,a breakout of the indirect cost component into two broad categories,Facilities and Administration as defined in subparagraph C.3,is required.The rate in each case shall be stated as the percentage which the amount of the particular indirect cost category(i.e.,Facilities or Administration)is of the distribution base identified with that category. 3.Multiple allocation base method a. General.Where an organization's indirect costs benefit its major functions in varying degrees,indirect costs shall be accumulated into separate cost groupings,as described in subparagraph b.Each grouping shall then be allocated individually to benefitting functions by means of a base which best measures the relative benefits.The default allocation bases by cost pool are described in subparagraph c. b. Identification of indirect costs.Cost groupings shall be established so as to permit the allocation of each grouping on the basis of benefits provided to the major functions.Each grouping shall constitute a pool of expenses that are of like character in terms of functions they benefit and in terms of the allocation base which best measures the relative benefits provided to each function.The groupings are classified within the two broad categories:"Facilities" and"Administration,"as described in subparagraph C.3.The indirect cost pools are defined as follows: (1)Depreciation and use allowances.The expenses under this heading are the portion of the costs of the organization's buildings,capital improvements to land and buildings,and equipment which are computed in accordance with paragraph 11 of Attachment B("Depreciation and use allowances"). (2)Interest.Interest on debt associated with certain buildings,equipment and capital improvements are computed in accordance with paragraph 23 of Attachment B("Interest"). (3)Operation and maintenance expenses.The expenses under this heading are those that have been incurred for the administration,operation,maintenance,preservation,and protection of the organization's physical plant.They include expenses normally incurred for such items as:janitorial and utility services;repairs and ordinary or normal alterations of buildings,furniture and equipment;care of grounds;maintenance and operation of buildings and other plant facilities;security;earthquake and disaster preparedness;environmental safety;hazardous waste disposal;property,liability and other insurance relating to property;space and capital leasing;facility planning and management;and;central receiving.The operation and maintenance expenses category shall also include its allocable share of fringe benefit costs,depreciation and use allowances.and interest costs. (4)General administration and general expenses.The expenses under this heading are those that have been incurred for the overall general executive and administrative offices of the organization and other expenses of a general nature which do not relate solely to any major function of the organization.This category shall also include its allocable share of fringe benefit costs,operation and maintenance expense,depreciation and use allowances, and interest costs.Examples of this category include central offices,such as the director's office,the office of finance,business services,budget and planning,personnel,safety and risk management,general counsel. management information systems,and library costs. In developing this cost pool,special care should be exercised to ensure that costs incurred for the same purpose in like circumstances are treated consistently as either direct or indirect costs.For example,salaries of technical staff, project supplies,project publication,telephone toll charges,computer costs,travel costs,and specialized services costs shall be treated as direct costs wherever identifiable to a particular program.The salaries and wages of administrative and pooled clerical staff should normally be treated as indirect costs,Direct charging of these costs may be appropriate where a major project or activity explicitly requires and budgets for administrative or clerical services and other individuals involved can be identified with the program or activity.Items such as office supplies, postage,local telephone costs,periodicals and memberships should normally be treated as indirect costs. c. Allocation bases.Actual conditions shall be taken into account in selecting the base to be used in allocating the expenses in each grouping to benefitting functions.The essential consideration in selecting a method or a base is that it is the one best suited for assigning the pool of costs to cost objectives in accordance with benefits derived,a traceable cause and effect relationship;or logic and reason,where neither the cause nor the effect of the relationship is determinable.When an allocation can be made by assignment of a cost grouping directly to the function benefited,the allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /2011 CIRCULAR NO. A-122 Revised May 10, 2004 I The White.House Page 7 of 30 (1)Depreciation and use allowances.Depreciation and use allowances expenses shall be allocated in the following manner: (a)Depreciation or use allowances on buildings used exclusively in the conduct of a single function,and on • capital improvements and equipment used a such buildings,shall be assigned to that function. • (b)Depreciation or use allowances on buildings used for more than one function,and on capital improvements and equipment used in such buildings,shall be allocated to the individual functions performed in each building on the basis of usable square feet of space,excluding common areas,such as hallways, stairwells,and restrooms. (c)Depreciation or use allowances on buildings,capital improvements and equipment related space(e.g., individual rooms.and laboratories)used jointly by more than one function(as determined by the users of the space)shall be treated as follows.The cost of each jointly used unit of space shall be allocated to the benefilting functions on the basis of: (i)the employees and other users on a full-time equivalent(FTE)basis or salaries and wages of those individual functions benefitting front 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.not included in the cost of buildings.shall be allocated to user categories on a FTE basis and distributed to major functions in proportion to the salaries and wages of all employees applicable to the functions. (2)Interest.Interest costs shall be allocated in the same manner as the depreciation or use allowances on the buildings,equipment and capital equipments to which the interest relates. (3)Operation and maintenance expenses.Operation and maintenance expenses shall be allocated in the same manner as the depreciation and use allowances. (4)General administration and general expenses.General administration and general expenses shall be allocated to benefitting functions based on modified total direct costs(MTDC),as described in subparagraph D.3.f.The expenses included in this category could be grouped first according to major functions of the organization to which • they render services or provide benefits.The aggregate expenses of each group shall then be allocated to benefitting functions based on MTDC. d. Order of distribution. (1)Indirect cost categories consisting of depreciation and use allowances,interest,operation and maintenance, and general administration and general expenses shall be allocated in that order to the remaining indirect cost categories as well as to the major functions of the organization.Other cost categories could be allocated in the order determined to be most appropriate by the organization.When cross allocation of costs is made as provided in subparagraph(2),this order of allocation does not apply. (2)Normally,an indirect cost category will be considered closed once it has been allocated to other cost objectives, and costs shall not be subsequently allocated to it.However,a cross allocation of costs between two or more indirect costs categories could be used if such allocation will result in a more equitable allocation of costs.If a cross allocation is used,an appropriate modification to the composition of the indirect cost categories is required. e. Application of indirect cost rate or rates.Except where a special indirect cost rate(s)is required in accordance with subparagraph D.5.the separate groupings of indirect costs allocated to each major function shall be aggregated and treated as a common pool for that function.The costs in the common pool shall then be distributed to individual awards included in that function by use of a single indirect cost rate. f. Distribution basis.indirect costs shall be distributed to applicable sponsored awards and other benefitting activities within each major function on the basis of MTDC.MTDC consists of all salaries and wages,fringe benefits, materials and supplies,services,travel,and subgrants and subcontracts up to the first$25,000 of each subgrant or subcontract(regardless of the period covered by the subgrant or subcontract).Equipment.capital expenditures, charges for patient care,rental costs and the portion in excess of$25,000 shall be excluded from MTDC. Participant support costs shall generally be excluded from MTDC.Other items may only be excluded when the Federal cost cognizant agency determines that an exclusion is necessary to avoid a serious inequity in the distribution of indirect costs. g. Individual Rate Components.An indirect cost rate shall be determined for each separate indirect cost pool . developed.The rate in each case shall be stated as the percentage which the amount of the particular indirect cost pool is of the distribution base identified with that pool.Each indirect cost rate negotiation or determination agreement shall include development of the rate for each indirect cost pool as well as the overall indirect cost rate. • http://wvvvv.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 he essential consideration in selecting a method or a base is that it is the one best suited for assigning the pool of costs to cost objectives in accordance with benefits derived,a traceable cause and effect relationship;or logic and reason,where neither the cause nor the effect of the relationship is determinable.When an allocation can be made by assignment of a cost grouping directly to the function benefited,the allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /2011 CIRCULAR NO. A-122 Revised May 10, 2004 I The White House Page 8 of 30 • • • The indirect cost pools shall be classified within two broad categories:"Facilities"and"Administration;'as • described in subparagraph C.3. 4.Direct allocation method. a. Some non-profit organizations treat all costs as direct costs except general administration and general expenses. These organizations generally separate their costs into three basic categories:(i)General administration and general expenses,(ii)fundraising,and(iii)other direct functions(including projects performed under Federal awards).Joint costs,such as depreciation.rental costs,operation and maintenance of facilities,telephone expenses,and the like are prorated individually as direct costs to each category and to each award or other activity using a base most appropriate to the particular cost being prorated. b. This method is acceptable,provided each joint cost is prorated using a base which accurately measures the benefits provided to each award or other activity.The bases must be established in accordance with reasonable criteria,and be supported by current data.This method is compatible with the Standards of Accounting and Financial Reporting for Voluntary Health and Welfare Organizations issued jointly by the National Health Council. Inc.,the National Assembly of Voluntary Health and Social Welfare Organizations,and the United Way of America. c. Under this method,indirect costs consist exclusively of general administration and general expenses.In all other respects,the organization's indirect cost rates shall be computed in the same manner as that described in subparagraph 2. 5.Special indirect cost rates.In some instances,a single indirect cost rate for all activities of an organization or for each major function of the organization may not be appropriate,since it would not take into account those different factors which may substantially affect the Indirect costs applicable to a particular segment of work.For this purpose,a particular segment of work may be that performed under a single award or it may consist of work under a group of awards performed in a common environment.These factors may include the physical location of the work,the level of administrative support required,the nature of the facilities or other resources employed,the scientific disciplines or technical skills involved,the organizational arrangements used,or any combination thereof.When a particular segment of work is performed in an environment which appears to generate a significantly different level of indirect costs,provisions should be made for a separate indirect cost pool applicable to such work.The separate indirect cost pool should be developed during the course of the regular allocation process,and the separate indirect cost rate resulting therefrom should be used,provided it is determined that(i)the rate differs significantly from that which would have been obtained under subparagraphs 2,3,and 4,and(ii)the volume of work to which the rate would apply is material. E.Negotiation and Approval of Indirect Cost Rates 1.Definitions.As used in this section,the following terms have the meanings set forth below: a. Cognizant agency means the Federal agency responsible for negotiating and approving indirect cost rates for a non-profit organization on behalf of all Federal agencies. b. Predetermined rate means an indirect cost rate,applicable to a specified current or future period,usually the organization's fiscal year.The rate is based on an estimate of the costs to be incurred during the period.A predetermined rate is not subject to adjustment. c. Fixed rate means an indirect cost rate which has the same characteristics as a predetermined rate,except that the difference between the estimated costs and the actual costs of the period covered by the rate is carried forward as an adjustment to the rate computation of a subsequent period. d. Final rate means an indirect cost rate applicable to a specified past period which is based on the actual costs of the period.A final rate is not subject to adjustment. e. Provisional rate or billing rate means a temporary indirect cost rate applicable to a specified period which is used for funding,interim reimbursement,and reporting indirect costs on awards pending the establishment of a final rate for the period. f. Indirect cost proposal means the documentation prepared by an organization to substantiate its claim for the reimbursement of indirect costs.This proposal provides the basis for the review and negotiation leading to the establishment of an organization's indirect cost rate. g. Cost objective means a function,organizational subdivision,contract,grant,or other work unit for which cost data are desired and for which provision is made to accumulate and measure the cost of processes,projects,jobs and capitalized projects. 2,Negotiation and approval of rates. a. Unless different arrangements are agreed to by the agencies concerned,the Federal agency with the largest dollar value of awards with an organization will be designated as the cognizant agency for the negotiation and approval of the indirect cost rates and,where necessary,other rates such as fringe benefit and computer charge-out rates. Once an agency is assigned cognizance for a particular non-profit organization,the assignment will not be changed unless there is a major long-term shift in the dollar volume of the Federal awards to the organization.All concemed http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 nor the effect of the relationship is determinable.When an allocation can be made by assignment of a cost grouping directly to the function benefited,the allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /2011 CIRCULAR NO. A-122 Revised May 10, 2004 I The White House Page 9 of 30 • Federal agencies shall be given the opportunity to participate in the negotiation process but,after a rate has been agreed upon,it will be accepted by all Federal agencies.When a Federal agency has reason to believe that special operating factors affecting its awards necessitate special indirect cost rates in accordance with subparagraph D.5. it will.prior to the time the rates are negotiated,notify the cognizant agency. b. A non-profit organization which has not previously established an indirect cost rate with a Federal agency shall submit its initial indirect cost proposal immediately after the organization is advised that an award will be made and, in no event,later than three months after the effective date of the award. c. Organizations that have previously established indirect cost rates must submit a new indirect cost proposal to the cognizant agency within six months after the,close of each fiscal year. d. A predetermined rate may be negotiated for use on awards where there is reasonable assurance,based on past experience and reliable projection of the organization's costs,that the rate is not likely to exceed a rate based on the organization's actual costs. e. Fixed rates may be negotiated where predetermined rates are not considered appropriate.A fixed rate,however, shall not be negotiated if(i)all or a substantial portion of the organization's awards are expected to expire before the carry-forward adjustment can be made;(ii)the mix of Federal and non-Federal work at the organization is too erratic to permit an equitable carry-forward adjustment;or(iii)the organization's operations fluctuate significantly from year to year. • f Provisional and final rates shall be negotiated where neither predetermined nor fixed rates are appropriate. 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 be resolved in accordance with the appeals procedures of the cognizant agency. i. To the extent that problems are encountered among the Federal agencies in connection with the negotiation and approval process,OMB will lend assistance as required to resolve such problems in a timely manner. ATTACHMENT B Circular No.A-122 SELECTED ITEMS OF COST Table of Contents 1. Advertising and public relations costs 2. Advisory councils 3. Alcoholic beverages 4. Audit costs and related services 5. Bad debts 6. Bonding costs 7. Communication costs 8. Compensation for personal services 9. Contingency provisions 10. Defense and prosecution of criminal and civil proceedings,claims,appeals and patent infringement 11. Depreciation and use allowances 12. Donations and contributions 13. Employee morale.health,and welfare costs 14. Entertainment costs 15. Equipment and other capital expenditures 16. Fines and penalties 17. Fund raising and investment management costs 18. Gains and losses on depreciable assets 19. Goods or services for personal use 20. Housing and personal living expenses 21. Idle facilities and idle capacity 22. Insurance and indemnification 23. Interest 24. Labor relations costs • 25. Lobbying . 26. Losses on other sponsored agreements or contracts • 27. Maintenance and repair costs http://wwvv.whitehouse.gov/omb/circulars_a122 2004/ 7/20/2011 me characteristics as a predetermined rate,except that the difference between the estimated costs and the actual costs of the period covered by the rate is carried forward as an adjustment to the rate computation of a subsequent period. d. Final rate means an indirect cost rate applicable to a specified past period which is based on the actual costs of the period.A final rate is not subject to adjustment. e. Provisional rate or billing rate means a temporary indirect cost rate applicable to a specified period which is used for funding,interim reimbursement,and reporting indirect costs on awards pending the establishment of a final rate for the period. f. Indirect cost proposal means the documentation prepared by an organization to substantiate its claim for the reimbursement of indirect costs.This proposal provides the basis for the review and negotiation leading to the establishment of an organization's indirect cost rate. g. Cost objective means a function,organizational subdivision,contract,grant,or other work unit for which cost data are desired and for which provision is made to accumulate and measure the cost of processes,projects,jobs and capitalized projects. 2,Negotiation and approval of rates. a. Unless different arrangements are agreed to by the agencies concerned,the Federal agency with the largest dollar value of awards with an organization will be designated as the cognizant agency for the negotiation and approval of the indirect cost rates and,where necessary,other rates such as fringe benefit and computer charge-out rates. Once an agency is assigned cognizance for a particular non-profit organization,the assignment will not be changed unless there is a major long-term shift in the dollar volume of the Federal awards to the organization.All concemed http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 nor the effect of the relationship is determinable.When an allocation can be made by assignment of a cost grouping directly to the function benefited,the allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /2011 CIRCULAR NO. A-122 Revised May 10, 2004 I The White House Page 10 of 30 • 28. Materials and supplies costs • 29. Meetings and conferences 30. Memberships,subscriptions,and professional activity costs 31. Organization costs 32. Page charges in professional journals 33. Participant support costs 34. Patent costs 35. Plant and homeland security costs 36. Pre-agreement costs 37. Professional services costs 38. Publication and printing costs 39. Rearrangement and alteration costs 40. Reconversion costs 41. Recruiting costs 42. Relocation costs 43. Rental costs of buildings and equipment 44. Royalties and other costs for use of patents and copyrights 45. Selling and marketing 46. Specialized service facilities 47. Taxes 48. Termination costs applicable to sponsored agreements 49. Training costs 50. Transportation costs 51. Travel costs • 52. Trustees • ATTACHMENT B Circular No.A-122 SELECTED ITEMS OF COST Paragraphs 1 through 53 provide principles to be applied in establishing the allowability of certain items of cost.These principles apply whether a cost is treated as direct or indirect.Failure to mention a particular item of cost is not intended to imply that it is unallowable;rattler,determination as to allowability in each case should be based on the treatment or principles provided for similar or related items of cost. 1.Advertising and public relations costs. a. The term advertising costs means the costs of advertising media and corollary administrative costs.Advertising media include magazines,newspapers,radio and television,direct mail,exhibits,electronic or computer transmittals,and the like. b. The term public relations includes community relations and means those activities dedicated to maintaining the image of the non-profit organization or maintaining or promoting understanding and favorable relations with the community or public at large or any segment of the public. c. The only allowable advertising costs are those which are solely for: (1)The recruitment of personnel required for the performance by the non-profit organization of obligations arising under a Federal award(See also Attachment B,paragraph 41,Recruiting costs,and paragraph 42,Relocation costs); (2)The procurement of goods and services for the performance of a Federal award; • (3)The disposal of scrap or surplus materials acquired in the performance of a Federal award except when non- profit organizations are reimbursed for disposal costs at a predetermined amount:or (4)Other specific purposes necessary to meet the requirements of the Federal award. d. The only allowable public relations costs are: • (1)Costs specifically required by the Federal award; (2)Costs of communicating with the public and press pertaining to specific activities or accomplishments which result from performance of Federal awards(these costs are considered necessary as part of the outreach effort for the Federal award);or (3)Costs of conducting general liaison with news media,and government public relations officers,to the extent that such activities are limited to communication and liaison necessary keep the public informed on matters of public http://www.whitehouse.gov/omb/circulars_a 122_2004/ 7/20/2011 facilities and idle capacity 22. Insurance and indemnification 23. Interest 24. Labor relations costs • 25. Lobbying . 26. Losses on other sponsored agreements or contracts • 27. Maintenance and repair costs http://wwvv.whitehouse.gov/omb/circulars_a122 2004/ 7/20/2011 me characteristics as a predetermined rate,except that the difference between the estimated costs and the actual costs of the period covered by the rate is carried forward as an adjustment to the rate computation of a subsequent period. d. Final rate means an indirect cost rate applicable to a specified past period which is based on the actual costs of the period.A final rate is not subject to adjustment. e. Provisional rate or billing rate means a temporary indirect cost rate applicable to a specified period which is used for funding,interim reimbursement,and reporting indirect costs on awards pending the establishment of a final rate for the period. f. Indirect cost proposal means the documentation prepared by an organization to substantiate its claim for the reimbursement of indirect costs.This proposal provides the basis for the review and negotiation leading to the establishment of an organization's indirect cost rate. g. Cost objective means a function,organizational subdivision,contract,grant,or other work unit for which cost data are desired and for which provision is made to accumulate and measure the cost of processes,projects,jobs and capitalized projects. 2,Negotiation and approval of rates. a. Unless different arrangements are agreed to by the agencies concerned,the Federal agency with the largest dollar value of awards with an organization will be designated as the cognizant agency for the negotiation and approval of the indirect cost rates and,where necessary,other rates such as fringe benefit and computer charge-out rates. Once an agency is assigned cognizance for a particular non-profit organization,the assignment will not be changed unless there is a major long-term shift in the dollar volume of the Federal awards to the organization.All concemed http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 nor the effect of the relationship is determinable.When an allocation can be made by assignment of a cost grouping directly to the function benefited,the allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /2011 CIRCULAR NO. A-122 Revised May 10, 2004 1 The White HoUse Page 11 of 30 concern,such as notices of Federal contract/grant awards,financial matters,etc. e. Costs identified in subparagraphs c and d if incurred for more than one Federal award or for both sponsored work and other work of the non-profit organization,are allowable to the extent that the principles in Attachment A, paragraphs B.("Direct Costs")and C.("Indirect Costs")are observed. f. Unallowable advertising and public relations costs include the following: (1)All advertising and public relations costs other than as specified in subparagraphs c,d.and e:(2)Costs of meetings.conventions,convocations,or other events related to other activities of the non-profit organization, including. (a)Costs of displays,demonstrations.and exhibits; (b)Costs of meeting rooms,hospitality suites,and other special facilities used in conjunction with shows and other special events;and (c)Salaries and wages of employees engaged in setting up and displaying exhibits,making demonstrations, and providing briefings; (3)Costs of promotional items and memorabilia,including models,gifts,and souvenirs: • (4)Costs of advertising and public relations designed solely to promote the non-profit organization. • 2.Advisory Councils Costs incurred by advisory councils or committees are allowable as a direct cost where authorized by the Federal awarding agency or as an indirect cost where allocable to Federal awards. 3.Alcoholic beverages.Costs of alcoholic beverages are unallowable. 4.Audit costs and related services a. The costs of audits required by,and performed in accordance with,the Single Audit Act,as implemented by Circular A-133,"Audits of States,Local Governments,and Non-Profit Organizations"are allowable.Also see 31 USC 7505(b)and section 230("Audit Costs")of Circular A-133. b. Other audit costs are allowable if included in an indirect cost rate proposal,or if specifically approved by the awarding agency as a direct cost to an award. c. The cost of agreed-upon procedures engagements to monitor subrecipients who are exempted from A-133 under section 200(d)are allowable,subject to the conditions listed in A-133,section 230(b)(2). 5.Bad debts.Bad debts,including losses(whether actual or estimated)arising from uncollectable accounts and other • claims,related collection costs,and related legal costs,are unallowable. 6.Bonding costs. a. Bonding costs arise when the Federal Government requires assurance against financial loss to itself or others by reason of the act or default of the non-profit organization.They arise also in instances where the non-profit organization requires similar assurance.Included are such bonds as bid,performance,payment,advance payment,infringement,and fidelity bonds. b. Costs of bonding required pursuant to the terms of the award are allowable. c. Costs of bonding required by the non-profit organization in the general conduct of its operations are allowable to the extent that such bonding is in accordance with sound business practice and the rates and premiums are reasonable under the circumstances. 7.Communication costs.Costs incurred for telephone services,local and long distance telephone calls,telegrams, postage,messenger,electronic or computer transmittal services and the like are allowable. 8.Compensation for personal services. a. Definition.Compensation for personal services includes all compensation paid currently or accrued by the • organization for services of employees rendered during the period of the award(except as otherwise provided in subparagraph h).It includes,but is not limited to,salaries,wages,director's and executive committee member's fees,incentive awards,fringe benefits.pension plan costs,allowances for off-site pay,incentive pay,location allowances,hardship pay,and cost of living differentials. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 ble to a specified past period which is based on the actual costs of the period.A final rate is not subject to adjustment. e. Provisional rate or billing rate means a temporary indirect cost rate applicable to a specified period which is used for funding,interim reimbursement,and reporting indirect costs on awards pending the establishment of a final rate for the period. f. Indirect cost proposal means the documentation prepared by an organization to substantiate its claim for the reimbursement of indirect costs.This proposal provides the basis for the review and negotiation leading to the establishment of an organization's indirect cost rate. g. Cost objective means a function,organizational subdivision,contract,grant,or other work unit for which cost data are desired and for which provision is made to accumulate and measure the cost of processes,projects,jobs and capitalized projects. 2,Negotiation and approval of rates. a. Unless different arrangements are agreed to by the agencies concerned,the Federal agency with the largest dollar value of awards with an organization will be designated as the cognizant agency for the negotiation and approval of the indirect cost rates and,where necessary,other rates such as fringe benefit and computer charge-out rates. Once an agency is assigned cognizance for a particular non-profit organization,the assignment will not be changed unless there is a major long-term shift in the dollar volume of the Federal awards to the organization.All concemed http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 nor the effect of the relationship is determinable.When an allocation can be made by assignment of a cost grouping directly to the function benefited,the allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /2011 CIRCULAR NO. A-122 Revised May 10, 2004 I 1 he White House Page 12 of 1 b. Allowability.Except as otherwise specifically provided in this paragraph,the costs of such compensation are allowable to the extent that: (1)Total compensation to individual employees is reasonable for the services rendered and conforms to the established policy of the organization consistently applied to both Federal and non-Federal activities;and (2)Charges to awards whether treated as direct or indirect costs are determined and supported as required in this paragraph. c. Reasonableness. (1)When the organization is predominantly engaged in activities other than those sponsored by the Federal Government,compensation for employees on federally sponsored work will be considered reasonable to the extent that it is consistent with that paid for similar work in the organization's other activities. (2)When the organization is predominantly engaged in federally sponsored activities and in cases where the kind of employees required for the Federal activities are not found in the organization's other activities,compensation for employees on federally sponsored work will be considered reasonable to the extent that it is comparable to that paid for similar work in the labor markets in which the organization competes for the kind of employees involved. d. Special considerations in determining allowability.Certain conditions require special consideration and possible limitations in determining costs under Federal awards where amounts or types of compensation appear unreasonable.Among such conditions are the following: (1)Compensation to members of non-profit organizations,trustees,directors,associates,officers,or the immediate families thereof.Determination should be made that such compensation is reasonable for the actual personal services rendered rather than a distribution of earnings in excess of costs. (2)Any change in an organization's compensation policy resulting in a substantial increase in the organization's level of compensation,particularly when it was concurrent with an increase in the ratio of Federal awards to other activities of the organization or any change in the treatment of allowability of specific types of compensation due to changes in Federal policy. • e. Unallowable costs.Costs which are unallowable under other paragraphs of this Attachment shall not be allowable under this paragraph solely on the basis that they constitute personal compensation. f. Overtime,extra-pay shift,and multi-shift premiums.Premiums for overtime,extra-pay shifts,and multi-shift work are allowable only with the prior approval of the awarding agency except: (1)When necessary to cope with emergencies,such as those resulting from accidents.natural disasters, breakdowns of equipment,or occasional operational bottlenecks of a sporadic nature. (2)When employees are performing indirect functions,such as administration,maintenance,or accounting. (3)In the performance of tests,laboratory procedures,or other similar operations which are continuous in nature and cannot reasonably be interrupted or otherwise completed. (4)When lower overall cost to the Federal Government will result. g. Fringe benefits. (1)Fringe benefits in the form of regular compensation paid to employees during periods of authorized absences from the job,such as vacation leave,sick leave,military leave,and the like,are allowable,provided such costs are absorbed by all organization activities in proportion to the relative amount of time or effort actually devoted to each. • (2)Fringe benefits in the form of employer contributions or expenses for social security,employee insurance, workmen's compensation insurance,pension plan costs(see subparagraph h),and the like,are allowable, provided such benefits are granted in accordance with established written organization policies.Such benefits whether treated as indirect costs or as direct costs,shall be distributed to particular awards and other activities in a manner consistent with the pattern of benefits accruing to the individuals or group of employees whose salaries and wages are chargeable to such awards and other activities. (3)(a)Provisions for a reserve under a self-insurance program for unemployment compensation or workers' compensation are allowable to the extent that the provisions represent reasonable estimates of the liabilities for such compensation,and the types of coverage,extent of coverage,and rates and premiums would have been allowable had insurance been purchased to cover the risks.However,provisions for self-insured liabilities which do not become payable for more than one year after the provision is made shall not exceed the present value of the liability. (b)Where an organization follows a consistent policy of expensing actual payments to,or on behalf of, employees or former employees for unemployment compensation or workers'compensation,such payments are allowable in the year of payment with the prior approval of the awarding agency,provided they are allocated to all activities of the organization. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 r rates such as fringe benefit and computer charge-out rates. Once an agency is assigned cognizance for a particular non-profit organization,the assignment will not be changed unless there is a major long-term shift in the dollar volume of the Federal awards to the organization.All concemed http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 nor the effect of the relationship is determinable.When an allocation can be made by assignment of a cost grouping directly to the function benefited,the allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /2011 CIRCULAR NO. A-122 Revised May 10, 2004 I The White House Page 13 of 30 (4)Costs of insurance on the lives of trustees,officers,or other employees holding positions of similar responsibility are allowable only to the extent that the insurance represents additional compensation.The costs of such insurance when the organization is named as beneficiary are unallowable. . h. Organization-furnished automobiles.Thal portion of the cost of organization-furnished automobiles that relates to personal use by employees(including transportation to and from work)is unallowable as fringe benefit or indirect costs regardless of whether the cost is reported as taxable income to the employees.These costs are allowable as direct costs to sponsored award when necessary for the performance of the sponsored award and approved by awarding agencies. i. Pension plan costs. (1)Costs of the organization's pension plan which are incurred in accordance with the established policies of the organization are allowable,provided: (a)Such policies meet the test of reasonableness; (b)The methods of cost allocation are not discriminatory; (c)The cost assigned to each fiscal year is determined in accordance with generally accepted accounting principles(GAAP),as prescribed in Accounting Principles Board Opinion No.8 issued by the American Institute of Certified Public Accountants;and (d)The costs assigned to a given fiscal year are funded for all plan participants within six months after the end of that year.However,increases to normal and past service pension costs caused by a delay in funding the actuarial liability beyond 30 days after each quarter of thy year to which such costs are assignable are unallowable. (2)Pension plan termination insurance premiums paid pursuant to the Employee Retirement Income Security Act (ERISA)of 1974(Pub.L.93-406)are allowable.Late payment charges on such premiums are unallowable. (3)Excise taxes on accumulated funding deficiencies and other penalties imposed under ERISA are unallowable. j. Incentive compensation.Incentive compensation to employees based on cost reduction.or efficient performance, suggestion awards,safety awards,etc.,are allowable to the extent that the overall compensation is determined to be reasonable and such costs are paid or accrued pursuant to an agreement entered into in good faith between the organization and the employees before the services were rendered,or pursuant to an established plan followed by the organization so consistently as to imply,in effect,an agreement to make such payment. k. Severance pay. (1)Severance pay,also commonly referred to as dismissal wages,is a payment in addition to regular salaries and wages,by organizations to workers whose employment is being terminated.Costs of severance pay are allowable only to the extent that in each case,it is required by (a)law, • (b)employer-employee agreement, (c)established policy that constitutes,in effect,an implied agreement on the organization's part,or (d)circumstances of the particular employment. (2)Costs of severance payments are divided into two categories as follows: (a)Actual normal turnover severance payments shall be allocated to all activities;or,where the organization provides for a reserve for normal severances,such method will be acceptable if the charge to current operations is reasonable in light of payments actually made for normal severances over a representative past period,and if amounts charged are allocated to all activities of the organization. (b)Abnormal or mass severance pay is of such a conjectural nature that measurement of costs by means of an accrual will not achieve equity to both parties.Thus,accruals for this purpose are not allowable.However, the Federal Government recognizes its obligation to participate,to the extent of its fair share,in any specific payment.Thus,allowability will be considered on a case-by-case basis in the event or occurrence. (c)Costs incurred in certain severance pay packages(commonly known as"a golden parachute"payment) which are in an amount in excess of the normal severance pay paid by the organization to an employee upon termination of employment and are paid to the employee contingent upon a change in management control over,or ownership of,the organization's assets are unallowable. (d)Severance payments to foreign nationals employed by the organization outside the United States,to the http://www.whitehouse.gov/omb/circulars_a122_2004/ • 7/20/2011 t of coverage,and rates and premiums would have been allowable had insurance been purchased to cover the risks.However,provisions for self-insured liabilities which do not become payable for more than one year after the provision is made shall not exceed the present value of the liability. (b)Where an organization follows a consistent policy of expensing actual payments to,or on behalf of, employees or former employees for unemployment compensation or workers'compensation,such payments are allowable in the year of payment with the prior approval of the awarding agency,provided they are allocated to all activities of the organization. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 r rates such as fringe benefit and computer charge-out rates. Once an agency is assigned cognizance for a particular non-profit organization,the assignment will not be changed unless there is a major long-term shift in the dollar volume of the Federal awards to the organization.All concemed http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 nor the effect of the relationship is determinable.When an allocation can be made by assignment of a cost grouping directly to the function benefited,the allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /2011 CIRCULAR NO. A-122 Revised May 10, 2004 11'he White House Page 14 of aU extent that the amount exceeds the customary or prevailing practices for the organization in the United States • are unallowable,unless they are necessary for the performance of Federal programs and approved by awarding agencies. (e)Severance payments to foreign nationals employed by the organization outside the United States due to the termination of the foreign national as a result of the closing of,or curtailment of activities by,the organization in that country,are unallowable,unless they are necessary for the performance of Federal programs and approved by awarding agencies. I. Training costs.See paragraph 49. m Support of salaries and wages. (1)Charges to awards for salaries and wages,whether treated as direct costs or indirect costs,will be based on documented payrolls approved by a responsible official(s)of the organization.The distribution of salaries and wages to awards must be supported by personnel activity reports,as prescribed in subparagraph(2),except when a substitute system has been approved in writing by the cognizant agency.(See subparagraph E.2 of Attachment A.) (2)Reports reflecting the distribution of activity of each employee must be maintained for all staff members (professionals and nonprofessionals)whose compensation is charged,in whole or in part.directly to awards.In addition,in order to support the allocation of indirect costs,such reports must also be maintained for other employees whose work involves two or more functions or activities if a distribution of their compensation between such functions or activities is needed in the determination of the organization's indirect cost rate(s)(e.g.,an employee engaged part-time in indirect cost activities and part-time in a direct function).Reports maintained by non -profit organizations to satisfy these requirements must meet the following standards: (a)The reports must reflect an after-the-fact determination of the actual activity of each employee.Budget estimates(i.e.,estimates determined before the services are performed)do not qualify as support for charges to awards. (b)Each report must account for the total activity for which employees are compensated and which is required in fulfillment of their obligations to the organization. (c)The reports must be signed by the individual employee,or by a responsible supervisory official having first hand knowledge of the activities performed by the employee,that the distribution of activity represents a reasonable estimate of the actual work performed by the employee during the periods covered by the reports. (d)The reports must be prepared at least monthly and must coincide with one or more pay periods. (3)Charges for the salaries and wages of nonprofessional employees,in addition to the supporting documentation described in subparagraphs(1)and(2),must also be supported by records indicating the total number of hours worked each day maintained in conformance with Department of Labor regulations implementing the Fair Labor Standards Act(FLSA)(29 CFR Part 516).For this purpose,the term"nonprofessional employee"shall have the same meaning as"nonexempt employee,"under FLSA. (4)Salaries and wages of employees used in meeting cost sharing or matching requirements on awards must be supported in the same manner as salaries and wages claimed for reimbursement from awarding agencies. 9.Contingency provisions.Contributions to a contingency reserve or any similar provision made for events the occurrence of which cannot be foretold with certainty as to time,intensity,or with an assurance of their happening,are unallowable. The term"contingency reserve"excludes self-insurance reserves(see Attachment B,paragraphs 8.g.(3)and 22.a(2) (d)):pension funds(see paragraph 8.i):and reserves for normal severance pay(see paragraph 8.k.) 10.Defense and prosecution of criminal and civil proceedings,claims,appeals and patent infringement. a. Definitions, (1)Conviction,as used herein,means a judgment or a conviction of a criminal offense by any court of competent jurisdiction,whether entered upon as a verdict or a plea,including a conviction due to a plea of nolo contendere. • (2)Costs include,but are not limited to,administrative and clerical expenses:the cost of legal services,whether performed by in-house or private counsel;and the costs of the services of accountants,consultants,or others retained by the organization to assist it;costs of employees,officers and trustees,and any similar costs incurred before,during,and after commencement of a judicial or administrative proceeding that bears a direct relationship to the proceedings. (3)Fraud,as used herein,means(i)acts of fraud corruption or attempts to defraud the Federal Government or to corrupt its agents,(ii)acts that constitute a cause for debarment or suspension(as specified in agency regulations), and(iii)acts which violate the False Claims Act,31 U.S.C.,sections 3729-3731,or the Anti-Kickback Act,41 U.S.C.,sections 51 and 54. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 r rates such as fringe benefit and computer charge-out rates. Once an agency is assigned cognizance for a particular non-profit organization,the assignment will not be changed unless there is a major long-term shift in the dollar volume of the Federal awards to the organization.All concemed http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 nor the effect of the relationship is determinable.When an allocation can be made by assignment of a cost grouping directly to the function benefited,the allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /2011 CIRCULAR NO. A-122 Revised May 10, 2004 I The White House Page 15 of 30 • (4)Penalty does not include restitution,reimbursement,or compensatory damages. (5)Proceeding includes an investigation. b. (1)Except as otherwise described herein,costs incurred in connection with any criminal,civil or administrative proceeding(including filing of a false certification)commenced by the Federal Government,or a State,local or foreign government,are not allowable if the proceeding:(1)relates to a violation of,or failure to comply with,a Federal,State,local or foreign statute or regulation by the organization(including its agents and employees),and (2)results in any of the following dispositions: (a)In a criminal proceeding,a conviction. (b)Ina 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 b may be allowed to the extent specifically provided in such agreement. d. If a proceeding referred to in subparagraph b is commenced by a State,local or foreign government,the authorized Federal official may allow the costs incurred by the organization for such proceedings,if such authorized official determines that the costs were incurred as a result of(1)a specific term or condition of a federally sponsored award,or(2)specific written direction of an authorized official of the sponsoring agency. e. Costs incurred in connection with proceedings described in subparagraph b,but which are not made unallowable by that subparagraph,may be allowed by the Federal Government,but only to the extent that: (1)The costs are reasonable in relation to the activities required to deal with the proceeding and the underlying cause of action; (2)Payment of the costs incurred,as allowable and allocable costs,is not prohibited by any other provision(s)of the sponsored award; (3)The costs are not otherwise recovered from the Federal Govemment or a third party,either directly as a result of the proceeding or otherwise;and, . (4)The percentage of costs allowed does not exceed the percentage determined by an authorized Federal official to be appropriate,considering the complexity of the litigation,generally accepted principles governing the award of legal fees in civil actions involving the United States as a party,and such other factors as may be appropriate. Such percentage shall not exceed 80 percent.However,if an agreement reached under subparagraph c has explicitly considered this 80 percent limitation and permitted a higher percentage,then the full amount of costs resulting from that agreement shall be allowable. f. Costs incurred by the organization in connection with the defense of suits brought by its employees or ex- employees under section 2 of the Major Fraud Act of 1988(Pub.L.100-700),including the cost of all relief necessary to make such employee whole,where the organization was found liable or settled,are unallowable. g. Costs of legal,accounting,and consultant services,and related costs,incurred in connection with defense against Federal Government claims or appeals.antitrust suits.or the prosecution of claims or appeals against the Federal Government.are unallowable, h. Costs of legal,accounting,and consultant services,and related costs,incurred in connection with patent • infringement litigation,are unallowable unless otherwise provided for in the sponsored awards. i. Costs which may be unallowable under this paragraph,including directly associated costs,shall be segregated and accounted for by the organization separately.During the pendency of any proceeding covered by subparagraphs b and f,the Federal Government shall generally withhold payment of such costs.However,if in the best interests of the Federal Government,the Federal Government may provide for conditional payment upon provision of adequate http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 3729-3731,or the Anti-Kickback Act,41 U.S.C.,sections 51 and 54. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 r rates such as fringe benefit and computer charge-out rates. Once an agency is assigned cognizance for a particular non-profit organization,the assignment will not be changed unless there is a major long-term shift in the dollar volume of the Federal awards to the organization.All concemed http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 nor the effect of the relationship is determinable.When an allocation can be made by assignment of a cost grouping directly to the function benefited,the allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /2011 CIRCULAR NO. A-122 Revised May 10, 2004 I The White House Page 16 of 30 security,or other adequate assurance,and agreements by the organization to repay all unallowable costs,plus interest,if the costs are subsequently determined to be unallowable. 11.Depreciation and use allowances. a. Compensation for the use of buildings,other capital improvements,and equipment on hand may be made through use allowance or depreciation.However,except as provided in Attachment B,paragraph f,a combination of the two methods may not be used in connection with a single class of fixed assets(e.g.,buildings,office equipment, computer equipment,etc.). b. The computation of use allowances or depreciation shall be based on the acquisition cost of the assets involved. The acquisition cost of an asset donated to the non-profit organization by a third party shall be its fair market value at the time of the donation. c. The computation of use allowances or depreciation will exclude: (1)The cost of land: (2)Any portion of the cost of buildings and equipment borne by or donated by the Federal Government irrespective of where title was originally vested or where it presently resides;and (3)Any portion of the cost of buildings and equipment contributed by or for the non-profit organization in satisfaction of a statutory matching requirement. d. Where depreciation method is followed,the period of useful service(useful life)established in each case for usable capital assets must take into consideration such factors as type of construction,nature of the equipment used, technological developments in the particular program area,and the renewal and replacement policies followed for the individual items or classes of assets involved.The method of depreciation used to assign the cost of an asset (or group of assets)to accounting periods shall reflect the pattern of consumption of the asset during its useful life. In the absence of clear evidence indicating that the expected consumption of the asset will be significantly greater or lesser in the early portions of its useful life than in the later portions,the straight-line method shall be presumed to be the appropriate method. Depreciation methods once used shall not be changed unless approved in advance by the cognizant Federal agency.When the depreciation method is introduced for application to assets previously subject to a use allowance,the combination of use allowances and depreciation applicable to such assets must notexceed the total acquisition cost of the assets. e. When the depreciation method is used for buildings,a building's shell may be segregated from each building component(e.g.,plumbing system,heating,and air conditioning system,etc.)and each item depreciated over its estimated useful life;or the entire building(i.e.,the shell and all components)may be treated as a single asset and depreciated over a single useful life. f. When the depreciation method is used for a particular class of assets,no depreciation may be allowed on any such assets that,under subparagraph d,would be viewed as fully depreciated.However,a reasonable use allowance may be negotiated for such assets if warranted after taking into consideration the amount of depreciation previously charged to the Federal Government,the estimated useful life remaining at time of negotiation,the effect of any increased maintenance charges or decreased efficiency due to age,and any other factors pertinent to the utilization of the asset for the purpose contemplated. • g. Where the use allowance method is followed,the use allowance for buildings and improvement(including land improvements,such as paved parking areas,fences,and sidewalks)will be computed at an annual rate not exceeding two percent of acquisition cost. The use allowance for equipment will be computed at an annual rate not exceeding six and two-thirds percent of acquisition cost.When the use allowance method is used for buildings,the entire building must be treated as a single asset:the building's components(e.g.,plumbing system,heating and air conditioning,etc.)cannot be segregated from the building's shell. The two percent limitation,however,need not be applied to equipment which is merely attached or fastened to the building but not permanently fixed to it and which is used as furnishings or decorations or for specialized purposes (e.g..dentist chairs and dental treatment units,counters,laboratory benches bolted to the floor,dishwashers, modular furniture.carpeting,etc.).Such equipment will be considered as not being permanently fixed to the building if it can be removed without the need for costly or extensive alterations or repairs to the building or the equipment.Equipment that meets these criteria will be subject to the 6 2/3 percent equipment use allowance limitation. h. Charges for use allowances or depreciation must be supported by adequate property records and physical inventories must be taken at least once every two years(a statistical sampling basis is acceptable)to ensure that assets exist and are usable and needed.When the depreciation method is followed,adequate depreciation records indicating the amount of depreciation taken each period must also be maintained. • http://www.whitehouse.gov/omb/circulars_a 122_2004/ 7/20/2011 on,the assignment will not be changed unless there is a major long-term shift in the dollar volume of the Federal awards to the organization.All concemed http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 nor the effect of the relationship is determinable.When an allocation can be made by assignment of a cost grouping directly to the function benefited,the allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /2011 CIRCULAR NO. A-122 Revised May 10, 2004 I The White House Page 17 of 30 12.Donations and contributions. a. Contributions or donations rendered.Contributions or donations,including cash,property,and services,made by the organization,regardless of the recipient,are unallowable. b. Donated services received: (1)Donated or volunteer services may be furnished to an organization by professional and technical personnel, consultants,and other skilled and unskilled labor.The value of these services is not reimbursable either as a direct or indirect cost.However,the value of donated services may be used to meet cost sharing or matching requirements in accordance with the Common Rule. (2)The value of donated services utilized in the performance of a direct cost activity shall,when material in amount, be considered in the determination of the non-profit organization's indirect costs or rate(s)and.accordingly,shall be allocated a proportionate share of applicable indirect costs when the following exist: (a)The aggregate value of the services is material; (b)The services are supported by a significant amount of the indirect costs incurred by the non-profit organization;and (c)The direct cost activity is not pursued primarily for the benefit of the Federal Government. (3)In those instances where there is no basis for determining the fair market value of the services rendered,the recipient and the cognizant agency shall negotiate an appropriate allocation of indirect cost to the services. (4)Where donated services directly benefit a project supported by an award,the indirect costs allocated to the services will be considered as a part of the total costs of the project.Such indirect costs may be reimbursed under • the award or used to meet cost sharing or matching requirements. (5)The value of the donated services may be used to meet cost sharing or matching requirements under conditions described in Sec._.23 of Circular A-110.Where donated services are treated as indirect costs,indirect cost rates will separate the value of the donations so that reimbursement will not be made. c. Donated goods or space. (1)Donated goods;i.e.,expendable personal property/supplies,and donated use of space may be furnished to a non-profit organization.The value of the goods and space is not reimbursable either as a direct or indirect cost. (2)The value of the donations may be used to meet cost sharing or matching share requirements under the conditions described in Circular A-110.Where donations are treated as indirect costs,indirect cost rates will separate the value of the donations so that reimbursement will not be made. 13.Employee morale,health,and welfare costs. a. The costs of employee information publications,health or first-aid clinics and/or infirmaries,recreational activities, employee counseling services,and any other expenses incurred in accordance with the non-profit organization's established practice or custom for the improvement of working conditions.employer-employee relations,employee morale,and employee performance are allowable. b. Such costs will be equitably apportioned to all activities of the non-profit organization.Income generated from any of these activities will be credited to the cost thereof unless such income has been irrevocably set over to employee • welfare organizations. 14.Entertainment costs.Costs of entertainment,including amusement,diversion,and social activities and any costs directly associated with such costs(such as tickets to shows or sports events,meals,lodging,rentals,transportation, and gratuities)are unallowable. 15.Equipment and other capital expenditures. a. For purposes of this subparagraph.the following definitions apply: (1)"Capital Expenditures"means expenditures for the acquisition cost of capital assets(equipment.buildings, land),or expenditures to make improvements to capital assets that materially increase their value or useful life. Acquisition cost means the cost of the asset including the cost to put it in place.Acquisition cost for equipment,for example,means the net invoice price of the equipment,including the cost of any modifications,attachments, accessories,or auxiliary apparatus necessary to make it usable for the purpose for which it is acquired.Ancillary charges,such as taxes,duty,protective in transit insurance,freight,and installation may be included in,or excluded from the acquisition cost in accordance with the non-profit organization's regular accounting practices. (2)"Equipment"means an article of nonexpendable,tangible personal property having a useful life of more than one year and an acquisition cost which equals or exceeds the lesser of the capitalization level established by the http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 t use allowance limitation. h. Charges for use allowances or depreciation must be supported by adequate property records and physical inventories must be taken at least once every two years(a statistical sampling basis is acceptable)to ensure that assets exist and are usable and needed.When the depreciation method is followed,adequate depreciation records indicating the amount of depreciation taken each period must also be maintained. • http://www.whitehouse.gov/omb/circulars_a 122_2004/ 7/20/2011 on,the assignment will not be changed unless there is a major long-term shift in the dollar volume of the Federal awards to the organization.All concemed http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 nor the effect of the relationship is determinable.When an allocation can be made by assignment of a cost grouping directly to the function benefited,the allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /2011 CIRCULAR NO. A-122 Revised May 10, 2004 I The White House Page 18 of 30 • non-profit organization for financial statement purposes,or$5000. (3)"Special purpose equipment"means equipment which is used only for research,medical,scientific,or other technical activities.Examples of special purpose equipment include microscopes,x-ray machines,surgical instruments,and spectrometers. (4)"General purpose equipment"means equipment,which is not limited to research,medical,scientific or other technical activities.Examples include office equipment and furnishings,modular offices,telephone networks, information technology equipment and systems,air conditioning equipment,reproduction and printing equipment, and motor vehicles. b. The following rules of allowability shall apply to equipment and other capital expenditures: (1)Capital expenditures for general purpose equipment,buildings,and land are unallowable as direct charges, except where approved in advance by the awarding agency. (2)Capital expenditures for special purpose equipment are allowable as direct costs,provided that items with a unit cost of$5000 or more have the prior approval of the awarding agency. (3)Capital expenditures for improvements to land,buildings,or equipment which materially increase their value or useful life are unallowable as a direct cost except with the prior approval of the awarding agency. (4)When approved as a direct charge pursuant to paragraph 15.b.(1),(2),and(3)above,capital expenditures will be charged in the period in which the expenditure is incurred,or as otherwise determined appropriate by and negotiated with the awarding agency. (5)Equipment and other capital expenditures are unallowable as indirect costs.However,see Attachment B, paragraph 11.,Depreciation and use allowance,for rules on the allowability of use allowances or depreciation on buildings,capital improvements,and equipment.Also,see Attachment B,paragraph 43.,Rental costs of buildings ' and equipment,for rules on the allowability of rental costs for land,buildings,and equipment. • (6)The(rnamortized portion of any equipment written off as a result of a change in capitalization levels may be recovered by continuing to claim the otherwise allowable use allowances or depreciation on the equipment,or by , amortizing the amount to be written off over a period of years negotiated with the cognizant agency. 16.Fines and penalties.Costs of fines and penalties resulting from violations of,or failure of the organization to comply with Federal,State,and local laws and regulations are unallowable except when incurred as a result of compliance with specific provisions of an award or instructions in writing from the awarding agency. 17.Fund raising and investment management costs. a. Costs of organized fund raising,including financial campaigns,endowment drives,solicitation of gifts and bequests,and similar expenses incurred solely to raise capital or obtain contributions are unallowable. b. Costs of investment counsel and staff and similar expenses incurred solely to enhance income from investments are unallowable. c. Fund raising and investment activities shall be allocated an appropriate share of indirect costs under the conditions described in subparagraph B.3 of Attachment A. 18.Gains and losses on depreciable assets. a. (1)Gains and losses on sale,retirement,or other disposition of depreciable property shall be included in the year in which they occur as credits or charges to cost grouping(s)in which the depreciation applicable to such property was included.The amount of the gain or loss to be included as a credit or charge to the appropriate cost grouping (s)shall be the difference between the amount realized on the property and the undepreciated basis of the property. (2)Gains and losses on the disposition of depreciable property shall not be recognized as a separate credit or charge under the following conditions: (a)The gain or loss is processed through a depreciation account and is reflected in the depredation allowable • under paragraph 11. (b)The property is given in exchange as part of the purchase price of a similar item and the gain or loss is taken into account in determining the depreciation cost basis of the new item. (c)A loss results from the failure to maintain permissible insurance,except as otherwise provided in Attachment B,paragraph 22. (d)Compensation for the use of the property was provided through use allowances in lieu of depredation in accordance with paragraph 9. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 r exceeds the lesser of the capitalization level established by the http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 t use allowance limitation. h. Charges for use allowances or depreciation must be supported by adequate property records and physical inventories must be taken at least once every two years(a statistical sampling basis is acceptable)to ensure that assets exist and are usable and needed.When the depreciation method is followed,adequate depreciation records indicating the amount of depreciation taken each period must also be maintained. • http://www.whitehouse.gov/omb/circulars_a 122_2004/ 7/20/2011 on,the assignment will not be changed unless there is a major long-term shift in the dollar volume of the Federal awards to the organization.All concemed http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 nor the effect of the relationship is determinable.When an allocation can be made by assignment of a cost grouping directly to the function benefited,the allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /2011 CIRCULAR NO. A-122 Revised May 10, 2004 I The White House Page 19 of 30 • • (e)Gains and losses arising from mass or extraordinary sales,retirements,or other dispositions shall be considered on a case-by-case basis. b. Gains or losses of any nature arising from the sale or exchange of property other than the property covered in subparagraph a shall be excluded in computing award costs. 19.Goods or services for personal use.Costs of goods or services for personal use of the organization's employees are unallowable regardless of whether the cost is reported as taxable income to the employees. 20.Housing and personal living expenses. a. Costs of housing(e.g.,depreciation,maintenance,utilities.furnishings,rent,etc.),housing allowances and • personal living expenses for/of the organization's officers are unallowable as fringe benefit or indirect costs regardless of whether the cost is reported as taxable income to the employees.These costs are allowable as direct costs to sponsored award when necessary for the performance of the sponsored award and approved by awarding agencies. b. The term"officers"includes current and past officers and employees. • 21.Idle facilities and idle capacity. a. As used in this section the following terms have the meanings set forth below: (1)"Facilities"means land and buildings or any portion thereof,equipment individually or collectively,or any other tangible capital asset,wherever located,and whether owned or leased by the non-profit organization. (2)"Idle facilities"means completely unused facilities that are excess to the non-profit organization's current needs. (3)"Idle capacity"means the unused capacity of partially used facilities.It is the difference between:(a)that which a facility could achieve under 100 percent operating time on a one-shift basis less operating interruptions resulting from time lost for repairs,setups,unsatisfactory materials,and other normal delays;and(b)the extent to which the facility was actually used to meet demands during the accounting period.A multi-shift basis should be used if it can be shown that this amount of usage would normally be expected for the type of facility involved. (4)"Cost of idle facilities or idle capacity"means costs such as maintenance,repair,housing,rent,and other related costs,e.g.,insurance,interest,property taxes and depreciation or use allowances. b. The costs of idle facilities are unallowable except to the extent that; (1)They are necessary to meet fluctuations in workload;or (2)Although not necessary to meet fluctuations in workload,they were necessary when acquired and are now idle because of changes in program requirements,efforts to achieve more economical operations,reorganization, termination,or other causes which could not have been reasonably foreseen.Under the exception stated in this subparagraph,costs of idle.facilities are allowable for a reasonable period of time,ordinarily not to exceed one year,depending on the initiative taken to use,lease,or dispose of such facilities. c. The costs of idle capacity are normal costs of doing business and are a factor in the normal fluctuations of usage or period.cost rates from period to Such costs,are allowable,provided that the capacity is reasonably anticipated to be necessary or was originally reasonable and is not subject to reduction or elimination by use on other Federal awards,subletting,renting,or sale,in accordance with sound business,economic,or security practices.Widespread idle capacity throughout an entire facility or among a group of assets having substantially the same function may be considered idle facilities. 22.Insurance and indemnification. a. Insurance includes insurance which the organization is required to carry,or which is approved,under the terms of the award and any other insurance which the organization maintains in connection with the general conduct of its operations.This paragraph does not apply to insurance which represents fringe benefits for employees(see subparagraphs 8.g and 8.i(2)). (1)Costs of insurance required or approved,and maintained,pursuant to the award are allowable. 401/ (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 fees. http://www.whitehouse.gov/omb/circulars_a122 2004/ • 7/20/2011 ablished by the http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 t use allowance limitation. h. Charges for use allowances or depreciation must be supported by adequate property records and physical inventories must be taken at least once every two years(a statistical sampling basis is acceptable)to ensure that assets exist and are usable and needed.When the depreciation method is followed,adequate depreciation records indicating the amount of depreciation taken each period must also be maintained. • http://www.whitehouse.gov/omb/circulars_a 122_2004/ 7/20/2011 on,the assignment will not be changed unless there is a major long-term shift in the dollar volume of the Federal awards to the organization.All concemed http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 nor the effect of the relationship is determinable.When an allocation can be made by assignment of a cost grouping directly to the function benefited,the allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /2011 CIRCULAR NO. A-122 Revised May 10, 2004 I The White House Page 20 of 30 (c)Costs of insurance or of any provisions for a reserve covering the risk of loss or damage to Federal property are allowable only to the extent that the organization is liable for such loss or damage. (d)Provisions for a reserve under a self-insurance program are allowable to the extent that types of coverage,extent of coverage,rates,and premiums would have been allowed had insurance been purchased to cover the risks.However,provision for known or reasonably estimated self-insured liabilities,which do not become payable for more than one year after the provision is made,shall not exceed the present value of the liability, ii (e)Costs of insurance on the lives of trustees,officers,or other employees holding positions of similar responsibilities are allowable only to the extent that the insurance represents additional compensation(see subparagraph 8.g(4)).The cost of such insurance when the organization is identified as the beneficiary is unallowable. (f)Insurance against defects,Costs of insurance with respect to any costs incurred to correct defects in the organization's materials or workmanship are unallowable. (g)Medical liability(malpractice)insurance.Medical liability insurance is an allowable cost of Federal research programs only to the extent that the Federal research programs involve human subjects or training of participants in'research techniques.Medical liability insurance costs shall be treated as a direct cost and shall be assigned to individual projects based on the manner in which the insurer allocates the risk to the population covered by the insurance. (3)Actual losses which could have been covered by permissible insurance(through the purchase of insurance or a self-insurance program)are unallowable unless expressly provided for in the award,except: (a)Costs incurred because of losses not covered under nominal deductible insurance coverage provided in keeping with sound business practice are allowable. (b)Minor losses not covered by insurance,such as spoilage,breakage.and disappearance of supplies, which occur in the ordinary course of operations.are allowable. b. Indemnification includes securing the organization against liabilities to third persons and any other loss or damage, not compensated by insurance or otherwise.The Federal Government is obligated to indemnity the organization only to the extent expressly provided in the award. 23.Interest. a. Costs incurred for interest on borrowed capital,temporary use of endowment funds,or the use of the non-profit organization's own funds,however represented,are unallowable.However,interest on debt incurred after September 29.1995 to acquire or replace capital assets(including renovations,alterations,equipment,land,and capital assets acquired through capital leases),acquired after September 29,1995 and used in support of Federal awards'is allowable,provided that: (1)For facilities acquisitions(excluding renovations and alterations)costing over$10 million where the Federal Government's reimbursement is expected to equal or exceed 40 percent of an asset's cost,the non-profit organization prepares,prior to the acquisition or replacement of the capital asset(s),a justification that demonstrates the need for the facility in the conduct of federally sponsored activities.Upon request,the needs justification must be provided to the Federal agency with cost cognizance authority as a prerequisite to the continued allowability of interest on debt and depreciation related to the facility.The needs justification for the acquisition of a facility should include,at a minimum,the following: (a)A statement of purpose and justification for facility acquisition or replacement (b)A statement as to why current facilities are not adequate (c)A statement of planned future use of the facility (d)A description of the financing agreement to be arranged for the facility (e)A summary of the building contract with estimated cost information and statement of source and use of funds (f)A schedule of planned occupancy datesfel (2)For facilities costing over$500,000,the non-profit organization prepares,prior to the acquisition or replacement of the facility,a lease/purchase analysis in accordance with the provisions of Sec._.30 through_.37 of Circular A-110,which shows that a financed purchase or capital lease is less costly to the organization than other leasing alternatives,on a net present value basis.Discount rates used should be equal to the non-profit organization's anticipated interest rates and should be no higher than the fair market rate available to the non-profit organization from an unrelated("arm's length")third-party.The lease/purchase analysis shall include a comparison of the net present value of the projected total cost comparisons of both alternatives over the period the asset is expected to http://www.whitehouse.gov/omb/circulars a 122_2004/ 7/20/2011 be taken at least once every two years(a statistical sampling basis is acceptable)to ensure that assets exist and are usable and needed.When the depreciation method is followed,adequate depreciation records indicating the amount of depreciation taken each period must also be maintained. • http://www.whitehouse.gov/omb/circulars_a 122_2004/ 7/20/2011 on,the assignment will not be changed unless there is a major long-term shift in the dollar volume of the Federal awards to the organization.All concemed http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 nor the effect of the relationship is determinable.When an allocation can be made by assignment of a cost grouping directly to the function benefited,the allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /2011 CIRCULAR NO. A-122 Revised May 10, 2004 I The White House Page 21 of 30 • be used by the non-profit organization.The cost comparisons associated with purchasing the facility shall include the estimated purchase price,anticipated operating and maintenance costs(including property taxes,if applicable) not included in the debt financing,less any estimated asset salvage value at the end of the period defined above. The cost comparison for a capital lease shall include the estimated total lease payments,any estimated bargain purchase option,operating and maintenance costs,and taxes not included in the capital leasing arrangement,less any estimated credits due under the lease at the end of the period defined above.Projected operating lease costs shall be based on the anticipated cost of leasing comparable facilities at fair market rates under rental agreements that would be renewed or reestablished over the period defined above,and any expected maintenance costs and allowable property taxes to be borne by the non-profit organization directly or as part of the lease arrangement. (3)The actual interest cost claimed is predicated upon interest rates that are no higher than the fair market rate available to the non-profit organization from an unrelated("arm's length")third party. (4)Investment earnings,including interest income,on bond or loan principal,pending payment of the construction or acquisition costs,are used to offset allowable interest cost,Arbitrage earnings reportable to the Internal Revenue Service are not required to be offset against allowable interest costs. (5)Reimbursements are limited to the least costly alternative based on the total cost analysis required under subparagraph(b).For example,if an operating lease is determined to be less costly than purchasing through debt financing,then reimbursement is limited to the amount determined if leasing had been used.In all cases where a lease/purchase analysis is performed,Federal reimbursement shall be based upon the least expensive alternative. (6)Non-profit organizations are also subject to the following conditions: (a)Interest on debt incurred to finance or refinance assets acquired before or reacquired after September 29, 1995,is not allowable. (b)Interest attributable to fully depreciated assets is unallowable. (c)For debt arrangements over$1 million,unless the non-profit organization makes an initial equity • contribution to the asset purchase of 25 percent or more,non-profit organizations shall reduce claims for . interest expense by an amount equal to imputed interest earnings on excess cash flow,which is to be calculated as follows.Annually,non-profit organizations shall prepare a cumulative(from the inception of the project)report of monthly cash flows that includes inflows and outflows,regardless of the funding source. Inflows consist of depreciation expense,amortization of capitalized construction interest,and annual interest expense,For cash flow calculations,the annual inflow figures shall be divided by the number of months in the year(usually 12)that the building is in service for monthly amounts.Outflows consist of initial equity • contributions,debt principal payments(less the pro rata share attributable to the unallowable costs of land) and interest payments.Where cumulative inflows exceed cumulative outflows,interest shall be calculated on the excess inflows for that period and be treated as a reduction to allowable interest expense.The rate of interest to be used to compute earnings on excess cash flows shall be the three month Treasury Bill closing rate as of the last business day of that month. (d)Substantial relocation of federally sponsored activities from a facility financed by indebtedness,the cost of which was funded in whole or part through Federal reimbursements,to another facility prior to the expiration of a period of 20 years requires notice to the Federal cognizant agency.The extent of the relocation,the amount of the Federal participation in the financing,and the depreciation and interest charged to date may require negotiation and/or downward adjustments of replacement space charged to Federal programs in the future. (e)The allowable costs to acquire facilities and equipment are limited to a fair market value available to the non-profit organization from an unrelated("arm's length")third party. b. For non-profit organizations subject to"full coverage"'under the Cost Accounting Standards(CAS)as defined at 48 CFR 9903.201.the interest atlowability provisions of subparagraph a do not apply.Instead,these organizations' sponsored agreements are subject to CAS 414(48 CFR 9903.414),cost of money as an element of the cost of facilities capital,and CAS 417(48 CFR 9903.417),cost of money as an element of the cost of capital assets under construction. c. The following definitions are to be used for purposes of this paragraph: (1)Re-acquired assets means assets held by the non-profit organization prior to September 29,1995 that have again come to be held by the organization,whether through repurchase or refinancing.It does not include assets • acquired to replace older assets. (2)Initial equity contribution means the amount or value of contributions made by non-profit organizations for the acquisition of the asset or prior to occupancy of facilities. (3)Asset costs means the capitalizable costs of an asset,including construction costs,acquisition costs,and other such costs capitalized in accordance with GAAP. • 24.Labor relations costs.Costs incurred in maintaining satisfactory relations between the organization and its http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 ction benefited,the allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /2011 CIRCULAR NO. A-122 Revised May 10, 2004 I The White House Page 22 of 30. employees,including costs of labor management committees,employee publications,and other related activities are allowable. 25.Lobbying. a. Notwithstanding other provisions of this Circular,costs associated with the following activities are unallowable: (1)Attempts to influence the outcomes of any Federal,State,or local election,referendum,initiative,or similar procedure,through in kind or cash contributions,endorsements,publicity,or similar activity: (2)Establishing,administering,contributing to,or paying the expenses of a political party,campaign,political action committee,or other organization established for the purpose of influencing the outcomes of elections; (3)Any attempt to influence:(i)The introduction of Federal or Stale legislation;or(ii)the enactment or modification of any pending Federal or State legislation through communication with any member or employee of the Congress or State legislature(including efforts to influence State or local officials to engage in similar lobbying activity),or with any Government official or employee in connection with a decision to sign or veto enrolled legislation; (4)Any attempt to influence:(i)The introduction of Federal or State legislation;or(ii)the enactment or modification of any pending Federal or State legislation by preparing,distributing or using publicity or propaganda,or by urging members of the general public or any segment thereof to contribute to or participate in any mass demonstration, march,rally,fundraising drive,lobbying campaign or letter writing or telephone campaign;or (5)Legislative liaison activities,including attendance at legislative sessions or committee hearings,gathering information regarding legislation,and analyzing the effect of legislation,when such activities are carried on in support of or in knowing preparation for an effort to engage in unallowable lobbying. b. The following activities are excepted from the coverage of subparagraph a: (1)Providing a technical and factual presentation of information on a topic directly related to the performance of a grant,contract or other agreement through hearing testimony,statements or letters to the Congress or a State legislature,or subdivision,member,or cognizant staff member thereof,in response to a documented request (including a Congressional Record notice requesting testimony or statements for the record at a regularly scheduled hearing)made by the recipient member,legislative body or subdivision,or a cognizant staff member thereof;provided such information is readily obtainable and can be readily put in deliverable form;and further provided that costs under this section for travel,lodging or-meals are unallowable unless incurred to offer testimony at a regularly scheduled Congressional hearing pursuant to a written request for such presentation made by the Chairman or Ranking Minority Member of the Committee or Subcommittee conducting such hearing. (2)Any lobbying made unallowable by subparagraph a(3)to influence State legislation in order to directly reduce the cost,or to avoid material impairment of the organization's authority to perform the grant,contract,or other agreement. (3)Any activity specifically authorized by statute to be undertaken with funds from the grant,contract,or other agreement. c. (1)When an organization seeks reimbursement for indirect costs,total lobbying costs shall be separately identified in the indirect cost rate proposal,and thereafter treated as other unallowable activity costs in accordance with the • procedures of subparagraph B.3 of Attachment A. (2)Organizations shall submit,as part of the annual indirect cost rate proposal,a certification that the requirements and standards of this paragraph have been complied with. (3)Organizations shall maintain adequate records to demonstrate that the determination of costs as being allowable or unallowable pursuant to paragraph 25 complies with the requirements of this Circular. (4)Time logs,calendars,or similar records shall not be required to be created for purposes of complying with this paragraph during any particular calendar month when:(1)the employee engages in lobbying(as defined in subparagraphs(a)and(b))25 percent or less of the employee's compensated hours of employment during that calendar month,and(2)within the preceding five-year period,the organization has not materially misstated allowable or unallowable costs of any nature,including legislative lobbying costs.When conditions(1)and(2)are met,organizations are not required to establish records to support the allowabliliy of claimed costs in addition to records already required or maintained.Also,when conditions(1)and(2)are met,the absence of time logs. calendars,or similar records will not serve as a basis for disallowing costs by contesting estimates of lobbying time spent by employees during a calendar month. (5)Agencies shall establish procedures for resolving in advance,in consultation with OMB,any significant questions or disagreements concerning the interpretation or application of paragraph 25.Any such advance resolution shall be binding in any subsequent settlements,audits or investigations with respect to that grant or contract for purposes of interpretation of this Circular;provided,however,that this shall not be construed to prevent a contractor or grantee from contesting the lawfulness of such a determination. http://www.whitehouse.gov/omb/circulars a 122_2004/ 7/20/2011 Labor relations costs.Costs incurred in maintaining satisfactory relations between the organization and its http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 ction benefited,the allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /2011 CIRCULAR NO. A-122 Revised May 10, 2004 I The White House • Page 23 of 30 • d. Executive lobbying costs.Costs incurred in attempting to improperly influence either directly or indirectly,an employee or officer of the Executive Branch of the Federal Government to give consideration or to act regarding a sponsored agreement or a regulatory matter are unallowable.Improper influence means any influence that induces or tends to induce a Federal employee or officer to give consideration or to act regarding a federally sponsored agreement or regulatory matter on any basis other than the merits of the matter. 26.Losses on other sponsored agreements or contracts.Any excess of costs over income on any award is unallowable as a cost of any other award.This includes,but is not limited to,the organization's contributed portion by reason of cost sharing agreements or any under-recoveries through negotiation of lump sums for,or ceilings on, indirect costs. 27.Maintenance and repair costs.Costs incurred for necessary maintenance,repair,or upkeep of buildings and equipment(including Federal property unless otherwise provided for)which neither add to the permanent value of the property nor appreciably prolong its intended life,but keep it in an efficient operating condition,are allowable.Costs incurred for improvements which add to the permanent value of the buildings and equipment or appreciably prolong their intended life shall be treated as capital expenditures(see paragraph 15). 28.Materials and supplies costs, a. Costs incurred for materials,supplies,and fabricated parts necessary to carry out a Federal award are allowable. b. Purchased materials and supplies shall be charged at their actual prices,net of applicable credits.Withdrawals from general stores or stockrooms should be charged at their actual net cost under any recognized method of pricing inventory withdrawals,consistently applied.Incoming transportation charges are a proper part of materials and supplies costs. c. Only materials and supplies actually used for the performance of a Federal award may be charged as direct costs. d. Where federally donated or furnished materials are used in performing the Federal award,such materials will be used without charge. 29.Meetings and conferences.Costs of meetings and conferences,the primary purpose of which is the • dissemination of technical information,are allowable.This includes costs of meals,transportation,rental of facilities, speakers'fees,and other items incidental to such meetings or conferences.But see Attachment B,paragraphs 14., Entertainment costs,and 33.,Participant support costs. 30.Memberships,subscriptions,and professional activity costs. a. Costs of the non-profit organization's membership in business,technical,and professional organizations are • allowable. b. Costs of the non-profit organization's subscriptions to business,professional,and technical periodicals are allowable. c. Costs of membership in any civic or community organization are allowable with prior approval by Federal cognizant agency. d. Costs of membership in any country club or social or dining club or organization are unallowable. • 31.Organization costs.Expenditures,such as incorporation fees,brokers'fees,fees to promoters,organizers or management consultants,attorneys,accountants,or investment counselors,whether or not employees of the organization,in connection with establishment or reorganization of an organization,are unallowable except with prior approval of the awarding agency. 32.Page charges in professional journals.Page charges for professional journal publications are allowable as a necessary part of research costs,where: • a. The research papers report work supported by the Federal Government:and b. The charges are levied impartially on all research papers published by the journal,whether or not by federally • sponsored authors. 33.Participant support costs.Participant support costs are direct costs for items such as stipends or subsistence allowances,travel allowances,and registration fees paid to or on behalf of participants or trainees(but not employees) in connection with meetings,conferences,symposia,or training projects.These costs are allowable with the prior approval of the awarding agency. 34.Patent costs. a. The following costs relating to patent and copyright matters are allowable:(i)cost of preparing disclosures,reports, and other documents required by the Federal award and of searching the art to the extent necessary to make such http://www.whitehouse.gov/omb/circulars_a122 2004/ 7/20/2011 to support the allowabliliy of claimed costs in addition to records already required or maintained.Also,when conditions(1)and(2)are met,the absence of time logs. calendars,or similar records will not serve as a basis for disallowing costs by contesting estimates of lobbying time spent by employees during a calendar month. (5)Agencies shall establish procedures for resolving in advance,in consultation with OMB,any significant questions or disagreements concerning the interpretation or application of paragraph 25.Any such advance resolution shall be binding in any subsequent settlements,audits or investigations with respect to that grant or contract for purposes of interpretation of this Circular;provided,however,that this shall not be construed to prevent a contractor or grantee from contesting the lawfulness of such a determination. http://www.whitehouse.gov/omb/circulars a 122_2004/ 7/20/2011 Labor relations costs.Costs incurred in maintaining satisfactory relations between the organization and its http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 ction benefited,the allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /2011 CIRCULAR NO. A-122 Revised May 10, 2004 I The White House Page 24 of 30 disclosures;(ii)cost of preparing documents and any other patent costs in connection with the filing and prosecution of a United States patent application where title or royalty-free license is required by the Federal • Government to be conveyed to the Federal Government;and(iii)general counseling services relating to patent and copyright matters,such as advice on patent and copyright laws,regulations,clauses.and employee agreements (but see paragraphs 37.,Professional services costs,and 44.,Royalties and other costs for use of patents and copyrights). b. The following costs related to patent and copyright matter are unallowable: (1)Cost of preparing disclosures,reports,and other documents and of searching the art to the extent necessary to make disclosures not required by the award • (2)Costs in connection with filing and prosecuting any foreign patent application,or any United States patent application,where the Federal award does not require conveying title or a royalty-free license to the Federal Government(but see paragraph 45.,Royalties and other costs for use of patents and copyrights). • 35.Plant and.homeland security costs.Necessary and reasonable expenses incurred for routine and homeland security to protect facilities,personnel,and work products are allowable.Such costs include,but are not limited to, wages and uniforms of personnel engaged in security activities;equipment;barriers;contractual security services; consultants;etc.Capital expenditures for homeland and plant security purposes are subject to paragraph 15., Equipment and other capital expenditures,of this Circular. 36.Pm-agreement costs.Pre-award costs are those incurred prior to the effective date of the award directly pursuant to the negotiation and in anticipation of the award where such costs are necessary to comply with the proposed delivery schedule or period of performance.Such costs are allowable only to the extent that they would have been allowable if incurred after the date of the award and only with the written approval of the awarding agency. 37.Professional services costs. a. Costs of professional and consultant services rendered by persons who are members of a particular profession or possess a special skill,and who are not officers or employees of the non-profit organization,are allowable,subject to subparagraphs b and c when reasonable in relation to the services rendered and when not contingent upon recovery of the costs from the Federal Government. • In addition,legal and related services are limited under Attachment B,paragraph 10. b. In determining the allowabitity of costs in a particular case,no single factor or any special combination of factors is necessarily determinative.However,the following factors are relevant: (1)The nature and scope of the service rendered in relation to the service required. (2)The necessity of contracting for the service,considering the non-profit organization's capability in the particular area. (3)The past pattern of such costs,particularly in the years prior to Federal awards. (4)The impact of Federal awards on the non-profit organization's business(i.e.,what new problems have arisen). • (5)Whether the proportion of Federal work to the non-profit organization's total business is such as to influence the non-profit organization in favor of incurring the cost,particularly where the services rendered are not of a continuing nature and have little relationship to work under Federal grants and contracts. (6)Whether the service can be performed more economically by direct employment rather than contracting. (7)The qualifications of the individual or concern rendering the service and the custoniary fees charged,especially on non-Federal awards. • (8)Adequacy of the contractual agreement for the service(e.g.,description of the service,estimate of time required,rate of compensation.and termination provisions). • • c. In addition to the factors in subparagraph b,retainer tees to be allowable must be supported by evidence of bona fide services available or rendered • 38.Publication and printing costs. a. Publication costs include the costs of printing(including the processes of composition,plate-making,press work, binding,and the end products produced by such processes),distribution,promotion,mailing,and general handling. Publication costs also include page charges in professional publications. • b. If these costs are not identifiable with a particular cost objective,they should be allocated as indirect costs to all • benefiting activities of the non-profit organization. • http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 ce of time logs. calendars,or similar records will not serve as a basis for disallowing costs by contesting estimates of lobbying time spent by employees during a calendar month. (5)Agencies shall establish procedures for resolving in advance,in consultation with OMB,any significant questions or disagreements concerning the interpretation or application of paragraph 25.Any such advance resolution shall be binding in any subsequent settlements,audits or investigations with respect to that grant or contract for purposes of interpretation of this Circular;provided,however,that this shall not be construed to prevent a contractor or grantee from contesting the lawfulness of such a determination. http://www.whitehouse.gov/omb/circulars a 122_2004/ 7/20/2011 Labor relations costs.Costs incurred in maintaining satisfactory relations between the organization and its http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 ction benefited,the allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /2011 CIRCULAR NO. A-122 Revised May 10, 2004 I The White House Page 25 of 30 • • c. Page charges for professional journal publications are allowable as a necessary part of research costs where: (1)The research papers report work supported by the Federal Government'and (2)The charges are levied impartially on all research papers published by the journal,whether or not by federally sponsored authors. 39.Rearrangement and alteration costs.Costs incurred for ordinary or normal rearrangement and alteration of facilities are allowable.Special arrangement and alteration costs incurred specifically for the project are allowable with the prior approval of the awarding agency. 40.Reconversion costs.Costs incurred in the restoration or rehabilitation of the non-profit organization's facilities to approximately the same condition existing immediately prior to commencement of Federal awards,less costs related to normal wear and tear,are allowable. 41.Recruiting costs. • a. Subject to subparagraphs b,c,and d,and provided that the size of the staff recruited and maintained is in keeping with workload requirements.costs of"help wanted"advertising,operating costs of an employment office necessary to secure and maintain an adequate staff,costs of operating an aptitude and educational testing program,travel costs of employees while engaged in recruiting personnel,travel costs of applicants for interviews for prospective employment,and relocation costs incurred incident to recruitment of new employees,are allowable to the extent that such costs are incurred pursuant to a well-managed recruitment program.Where the organization uses employment agencies,costs that are not in excess of standard commercial rates for such services are allowable. b. In publications,costs of help wanted advertising that includes color,includes advertising material for other than recruitment purposes,or is excessive in size(taking into consideration recruitment purposes for which intended and normal organizational practices in this respect),are unallowable. c. Costs of help wanted advertising,special emoluments,fringe benefits,and salary allowances incurred to attract professional personnel from other organizations that do not meet the test of reasonableness or do not conform with the established practices of the organization,are unallowable. d. Where relocation costs incurred incident to recruitment of a new employee have been allowed either as an allocable direct or indirect cost,and the newly hired employee resigns for reasons within his control within twelve months after being hired,the organization will be required to refund or credit such relocation costs to the Federal Government. . 42.Relocation costs. a. Relocation costs are costs incident to the permanent change of duty assignment(for an indefinite period or for a stated period of not less than 12 months)of an existing employee or upon recruitment of a new employee. Relocation costs are allowable,subject to the limitation described in subparagraphs b,c,and d,provided that: (1)The move is for the benefit of the employer. (2)Reimbursement to the employee is in accordance with an established written policy consistently followed by the employer. (3)The reimbursement does not exceed the employee's actual(or reasonably estimated)expenses. b. Allowable relocation costs for current employees are limited to the following: (1)The costs of transportation of the employee,members of his immediate family and his household,and personal effects to the new location. (2)The costs of finding a new home,such as advance trips by employees and spouses to locate living quarters and temporary lodging during the transition period,up to maximum period of 30 days,including advance trip time. (3)Closing costs,such as brokerage,legal,and appraisal fees,incident to the disposition of the employee's former home.These costs,together with those described in(4),are limited to 8 percent of the sales price of the employee's former home. (4)The continuing costs of ownership of the vacant former home after the settlement or lease date of the employee's new permanent home,such as maintenance of buildings and grounds(exclusive of fixing up expenses),utilities,taxes,and property insurance. (5)Other necessary and reasonable expenses normally incident to relocation,such as the costs of canceling an unexpired lease,disconnecting and reinstalling household appliances,and purchasing insurance against loss of or damages to personal property.The cost of canceling an unexpired lease is limited to three times the monthly rental. http://www.whitehouse.gov/omb/circulars_a122 2004/ 7/20/2011 irculars_a122_2004/ 7/20/2011 ce of time logs. calendars,or similar records will not serve as a basis for disallowing costs by contesting estimates of lobbying time spent by employees during a calendar month. (5)Agencies shall establish procedures for resolving in advance,in consultation with OMB,any significant questions or disagreements concerning the interpretation or application of paragraph 25.Any such advance resolution shall be binding in any subsequent settlements,audits or investigations with respect to that grant or contract for purposes of interpretation of this Circular;provided,however,that this shall not be construed to prevent a contractor or grantee from contesting the lawfulness of such a determination. http://www.whitehouse.gov/omb/circulars a 122_2004/ 7/20/2011 Labor relations costs.Costs incurred in maintaining satisfactory relations between the organization and its http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 ction benefited,the allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /2011 LIKI:U LAK NO. A-1 LL Kevisea may I u, 2UU4 the White House rage Lb of iU • • c. Allowable relocation costs for new employees are limited to those described in(1)and(2)of subparagraph b. When relocation costs incurred incident to the recruitment of new employees have been allowed either as a direct or indirect cost and the employee resigns for reasons within his control within 12 months after hire.the organization shall refund or credit the Federal Government for its share of the cost.However,the costs of travel to an overseas location shall be considered travel costs in accordance with paragraph 50 and not relocation costs for the purpose of this paragraph if dependents are not permitted at the location for any reason and the costs do not include costs of transporting household goods. d. The following costs related to relocation are unallowable: (1)Fees and other costs associated with acquiring a new home. (2)A loss on the sale of a former home. (3)Continuing mortgage principal and interest payments on a home being sold. (4)Income taxes paid by an employee related to reimbursed relocation costs. 43.Rental costs of buildings and equipment. a. Subject to the limitations described in subparagraphs b.through d.of this paragraph 43,rental costs are allowable to the extent that the rates are reasonable in light of such factors as:rental costs of comparable property,if any; market conditions in the area:alternatives available;and,the type,life expectancy,condition,and value of the property leased.Rental arrangements should be reviewed periodically to determine if circumstances have changed and other options are available. b. Rental costs under"sale and lease back"arrangements are allowable only up to the amount that would be allowed had'the non-profit organization continued to own the property.This amount would include expenses such as • depreciation or use allowance,maintenance.taxes,and insurance. c. Rental costs under"less-than-arms-length"leases are allowable only up to the amount(as explained in subparagraph b.of this paragraph 43.)that would be allowed had title to the property vested in the non-profit organization.For this purpose,a less-than-arms-length lease is one under which one party to the lease agreement is able to control or substantially influence the actions of the other.Such leases include,but are not limited to those between(i)divisions of a non-profit organization;(ii)non-profit organizations under common control through common officers,directors,or members;and(iii)a non-profit organization and a director,trustee,officer,or key employee of the non-profit organization or his immediate family,either directly or through corporations,trusts,or similar arrangements in which they hold a controlling interest.For example,a non-profit organization may establish a separate corporation for the sole purpose of owning property and leasing it back to the non-profit organization. d. Rental costs under leases which are required to be treated as capital leases under GAAP are allowable only up to the amount(as explained in subparagraph b)that would be allowed had the non-profit organization purchased the properly on the date the lease agreement was executed.The provisions of Financial Accounting Standards Board Statement 13,Accounting for Leases.shall be used to determine whether a lease is a capital lease.Interest costs related to capital leases are allowable to the extent they meet the criteria in subparagraph 23.Unallowable costs include amounts paid for profit,management fees,and taxes that would not have been incurred had the non-profit organization purchased the facility, 44.Royalties and other costs for use of patents and copyrights. a. Royalties on a patent or copyright or amortization of the cost of acquiring by purchase a copyright,patent,or rights thereto,necessary for the proper performance of the award are allowable unless: (1)The Federal Government has a license or the right to free use of the patent or copyright. (2)The patent or copyright has been adjudicated to be invalid,or has been administratively determined to be invalid. (3)The patent or copyright is considered to be unenforceable, (4)The patent or copyright is expired. b. Special care should be exercised in determining reasonableness where the royalties may have arrived at as a result of less-than-arm's-length bargaining,e.g.: (1)Royalties paid to persons,including corporations,affiliated with the non-profit organization. (2)Royalties paid to unaffiliated parties,including corporations,under an agreement entered into in contemplation that a Federal award would be made. (3)Royalties paid under an agreement entered into after an award is made to a non-profit organization. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 mployees during a calendar month. (5)Agencies shall establish procedures for resolving in advance,in consultation with OMB,any significant questions or disagreements concerning the interpretation or application of paragraph 25.Any such advance resolution shall be binding in any subsequent settlements,audits or investigations with respect to that grant or contract for purposes of interpretation of this Circular;provided,however,that this shall not be construed to prevent a contractor or grantee from contesting the lawfulness of such a determination. http://www.whitehouse.gov/omb/circulars a 122_2004/ 7/20/2011 Labor relations costs.Costs incurred in maintaining satisfactory relations between the organization and its http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 ction benefited,the allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /2011 CIRCULAR NO. A-122 Revised May 10, 2004 I The White House Page 27 of 30 , • c. In any case involving a patent or copyright formerly owned by the non-profit organization,the amount of royalty allowed should not exceed the cost which would have been allowed had the non-profit organization retained title thereto. • 45.Selling and marketing.Costs of selling and marketing any products or services of the non-profit organization are unallowable(unless allowed under Attachment B,paragraph 1.as allowable public relations cost.However,these costs are allowable as direct costs,with prior approval by awarding agencies,when they are necessary for the performance of Federal programs. 46.Specialized service facilities. a. The costs of services provided by highly complex or specialized facilities operated by the non-profit organization, such as computers,wind tunnels,and reactors are allowable,provided the charges for the services meet the conditions of either 46 b.or c.and,in addition,take into account any items of income or Federal financing that qualify as applicable credits under Attachment A,subparagraph A.5.of this Circular. b. The costs of such services,when material,must be charged directly to applicable awards based on actual usage of the services on the basis of a schedule of rates or established methodology that(i)does not discriminate against federally supported activities of the non-profit organization,including usage by the non-profit organization for internal purposes,and(ii)is designed to recover only the aggregate costs of the services.The costs of each service shall consist normally of both its direct costs and its allocable share of all indirect costs.Rates shall be adjusted at least biennially,and shall take into consideration over/under applied costs of the previous period(s). • c. Where the costs incurred for a service are not material,they may be allocated as indirect costs. d. Under some extraordinary circumstances,where it is in the best interest of the Federal Government and the institution to establish alternative costing arrangements,such arrangements may be worked out with the cognizant Federal agency. 47.Taxes. a. In general,taxes which the organization is required to pay and which are paid or accrued in accordance with GAAP,and payments made to local governments in lieu of taxes which are commensurate with the local government services received are allowable,except for(i)taxes from which exemptions are available to the organization directly or which are available to the organization based on an exemption afforded the Federal Government and in the latter case when the awarding agency makes available the necessary exemption certificates,(ii)special assessments on land which represent capital improvements.and(iii)Federal income taxes. b. Any refund of taxes,and any payment to the organization of interest thereon,which were allowed as award costs, will be credited either as a cost reduction or cash refund,as appropriate,to the Federal Government. 48.Termination costs applicable to sponsored agreements. Termination of awards generally gives rise to the incurrence of costs,or the need for special treatment of costs,which • would not have arisen had the Federal award not been terminated.Cost principles covering these items are set forth below.They are to be used in conjunction with the other provisions of this Circular in termination situations. a. The cost of items reasonably usable on the non-profit organization's other work shall not be allowable unless the non-profit organization submits evidence that it would not retain such items at cost without sustaining a loss.In deciding whether such items are reasonably usable on other work of the non-profit organization,the awarding agency should consider the non-profit organization's plans and orders for current and scheduled activity. Contemporaneous purchases of common items by the non-profit organization shall be regarded as evidence that such items are reasonably usable on the non-profit organization's other work.Any acceptance of common items as allocable to the terminated portion of the Federal award shall be limited to the extent that the quantities of such items on hand,in transit,and on order are in excess of the reasonable quantitative requirements of other work. b. If in a particular case.despite all reasonable efforts by the non-profit organization,certain costs cannot be discontinued immediately after the effective date of termination,such costs are generally allowable within the limitations set forth in this Circular,except that any such costs continuing after termination due to the negligent or willful failure of the non-profit organization to discontinue such costs shall be unallowable. c. Loss of useful value of special tooling,machinery,and is generally allowable if: (1)Such special tooling,special machinery,or equipment is not reasonably capable of use in the other work of the non-profit organization, (2)The interest of the Federal Government is protected by transfer of title or by other means deemed appropriate by the awarding agency,and • (3)The loss of useful value for any one terminated Federal award is limited to that portion of the acquisition cost which bears the same ratio to the total acquisition cost as the terminated portion of the Federal award bears to the http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 of such a determination. http://www.whitehouse.gov/omb/circulars a 122_2004/ 7/20/2011 Labor relations costs.Costs incurred in maintaining satisfactory relations between the organization and its http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 ction benefited,the allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /2011 U1KUULAK NO. A-122 Kevised May 1 U, 20041 1 he White House Page 28 of 3U entire terminated Federal award and other Federal awards for which the special tooling,special machinery,or equipment was acquired. d. Rental costs under unexpired leases are generally allowable where clearly shown to have been reasonably necessary for the performance of the terminated Federal award less the residual value of such leases,if: (1)the amount of such rental claimed does not exceed the reasonable use value of the property leased for the •period of the Federal award and such further period as may be reasonable,and (2)the non-profit organization makes all reasonable efforts to terminate,assign,settle,or otherwise reduce the cost • of such lease.There also may be included the cost of alterations of such leased property,provided such alterations were necessary for the performance of the Federal award,and of reasonable restoration required by the provisions of the lease. e. Settlement expenses including the following are generally allowable: (1)Accounting,legal,clerical,and similar costs reasonably necessary for: (a)The preparation and presentation to the awarding agency of settlement claims and supporting data with respect to the terminated portion of the Federal award,unless the termination is for default(see Subpart _.61 of Circular A-110);and (b)The termination and settlement of subawards. (2)Reasonable costs for the storage,transportation,protection,and disposition of property provided by the Federal Government or acquired or produced for the Federal award,except when grantees or contractors are reimbursed for disposals at a predetermined amount in accordance with Subparts_.32 through_.37 of Circular A-110. (3)Indirect costs related to salaries and wages incurred as settlement expenses in subparagraphs(1)and(2). Normally,such indirect costs shall be limited to fringe benefits,occupancy cost,and immediate supervision. f. Claims under sub awards.including the allocable portion of claims which are common to the Federal award,and to other work of the non-profit organization are generally allowable.' An appropriate share of the non-profit organization's indirect expense may be allocated to the amount of settlements with subcontractors and/or subgrantees,provided that the amount allocated is otherwise consistent with the basic guidelines contained in Attachment A.The indirect expense so allocated shall exclude the same and similar costs claimed directly or indirectly as settlement expenses. 49.Training costs. a. Costs of preparation and maintenance of a program of instruction including but not limited to on-the-job,classroom, and apprenticeship training,designed to increase the vocational effectiveness of employees,including training materials,textbooks,salaries or wages of trainees(excluding overtime compensation which might arise therefrom), and(i)salaries of the director of training and staff when the training program is conducted by the organization:or (6)tuition and fees when the training is in an institution not operated by the organization,are allowable. b. Costs of part-time education,at an undergraduate or post-graduate college level,including that provided at the organization's own facilities,are allowable only when the course or degree pursued is relative to the field in which the employee is now working or may reasonably be expected to work,and are limited to: (1)Training materials. . (2)Textbooks. (3)Fees charges by the educational institution. (4)Tuition charged by the educational institution or,in lieu of tuition,instructors'salaries and the related share of indirect costs of the educational institution to the extent that the sum thereof is not in excess of the tuition which would have been paid to the participating educational institution. • • (5)Salaries and related costs of instructors who are employees of the organization. (6)Straight-time compensation of each employee for time spent attending classes during working hours not in excess of 156 hours per year and only to the extent that circumstances do not permit the operation of classes or attendance at classes after regular working hours;otherwise,such compensation is unallowable. c. Costs of tuition,fees,training materials,and textbooks(but not subsistence,salary,or any other emoluments)in connection with full-time education,including that provided at the organization's own facilities,at a post-graduate (but not undergraduate)college level,are allowable only when the course or degree pursued is related to the field in which the employee is now working or may reasonably be expected to work,and only where the costs receive the prior approval of the awarding agency.Such costs are limited to the costs attributable to a total period not to http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 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/ 7/20/2011 of such a determination. http://www.whitehouse.gov/omb/circulars a 122_2004/ 7/20/2011 Labor relations costs.Costs incurred in maintaining satisfactory relations between the organization and its http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 ction benefited,the allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /2011 CIRCULAR NU. A-122 Revised May 1U, 2UU4 I the White House Page 29 of .3U exceed one school year for each employee so trained.In unusual cases the period may be extended. d. Costs of attendance of up to 16 weeks per employee per year at specialized programs specifically designed to enhance the effectiveness of executives or managers or to prepare employees for such positions are allowable. Such costs Include enrollment fees,training materials,textbooks and related charges,employees'salaries, subsistence,and travel.Costs allowable under this paragraph do not include those for courses that are part of a degree-oriented curriculum,which are allowable only to the extent set forth in subparagraphs b and c. e. Maintenance expense,and normal depreciation or fair rental,on facilities owned or leased by the organization for training purposes are allowable to the extent set forth in paragraphs 11,27,and 50. f. Contributions or donations to educational or training institutions,including the donation of facilities or other properties,and scholarships or fellowships,are unallowable. g. Training and education costs in excess of those otherwise allowable under subparagraphs b and c may be allowed with prior approval of the awarding agency.To be considered for approval,the organization must demonstrate that such costs are consistently incurred pursuant loan 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. b. Lodging and subsistence.Costs incurred by employees and officers for travel,including costs of lodging,other subsistence,and incidental expenses,shall be considered reasonable and allowable only to the extent such costs . do not exceed charges normally allowed by the non-profit organization in its regular operations as the result of the non-profit organization's written travel policy.In the absence of an acceptable,written non-profit organization policy regarding travel costs,the rates and amounts established under subchapter I of Chapter 57,Title 5.United States Code("Travel and Subsistence Expenses;Mileage Allowances"),or by the Administrator of General Services,or by the President(or his or her designee)pursuant to any provisions of such subchapter shall apply to travel under Federal awards(48 CFR 31.205-46(a)). c. Commercial air travel. (1)Airfare costs in excess of the customary standard commercial airfare(coach or equivalent),Federal • Government contract airfare(where authorized and available),or the lowest commercial discount airfare are unallowable except when such accommodations would:(a)require circuitous routing;(b)require travel during unreasonable hours;(c)excessively prolong travel;(d)result in additional costs that would offset the transportation savings;or(e)offer accommodations not reasonably adequate for the traveler's medical needs.The non-profit organization must justify and document these conditions on a case-by-case basis in order for the use of first-class airfare to be allowable in such cases. (2)Unless a pattern of avoidance is detected,the Federal Government will generally not question a non-profit organization's determinations that customary standard airfare or other discount airfare is unavailable for specific trips if the non-profit organization can demonstrate either of the following:(a)that such airfare was not available in the specific case;or(b)that it is the non-profit organization's overall practice to make routine use of such airfare. d. Air travel by other than commercial carrier.Costs of travel by non-profit organization-owned,-leased.or-chartered aircraft include the cost of lease,charter,operation(including personnel costs),maintenance,depreciation, insurance,and other related costs.The portion of such costs that exceeds the cost of allowable commercial air travel,as provided for in subparagraph]c.,is unallowable. e. Foreign travel.Direct charges for foreign travel costs are allowable only when the travel has received prior approval of the awarding agency.Each separate foreign trip must receive such approval.For purposes of this provision, "foreign travel"includes any travel outside Canada,Mexico,the United States,and any United States territories and possessions.However,the term"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. • http://www.whitehouse.gov/omb/circulars_aI 22_2004/ 7/20/2011 allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /2011 UIKUULAK NO. A-ILL Keviseci May IU, LUU4 I lne wrote douse rage su or sU • 52.Trustees.Travel and subsistence costs of trustees(or directors)are allowable.The costs are subject to• restrictions regarding lodging,subsistence and air travel costs provided in paragraph 51. • ATTACHMENT C Circular No.A-122 NON-PROFIT ORGANIZATIONS NOT SUBJECT TO THIS CIRCULAR • Advance Technology Institute(ATI),Charleston,South Carolina • Aerospace Corporation,El Segundo,California • American Institutes of Research(AIR),Washington D.C. • Argonne National Laboratory,Chicago,Illinois • Atomic Casualty Commission,Washington,D.C. • Battelle Memorial Institute.Headquartered in Columbus,Ohio • Brookhaven National Laboratory,Upton,New York • Charles Stark Draper Laboratory,Incorporated.Cambridge,Massachusetts • CNA Corporation(CNAC),Alexandria,Virginia • Environmental Institute of Michigan.Ann Arbor,Michigan • Georgia Institute of Technology/Georgia Tech Applied Research Corporation/Georgia Tech Research Institute, Atlanta,Georgia • Hanford Environmental Health Foundation,Richland.Washington • IIT Research Institute,Chicago,Illinois • Institute of Gas Technology,Chicago,Illinois • Institute for Defense Analysis,Alexandria,Virginia • • LMI,McLean,Virginia • • Mitre Corporation,Bedford,Massachusetts • Mitretek Systems,Inc.,Falls Church,Virginia • National Radiological Astronomy Observatory,Green Bank,West Virginia • National Renewable Energy Laboratory,Golden,Colorado • Oak Ridge Associated Universities,Oak Ridge,Tennessee • Rand Corporation,Santa Monica.California • Research Triangle Institute,Research Triangle Park,North Carolina • Riverside Research Institute,New York,New York • South Carolina Research Authority(SCRA),Charleston.South Carolina • Southern Research Institute,Birmingham,Alabama • Southwest Research Institute,San Antonio,Texas • SRI International,Menlo Park,California • Syracuse Research Corporation,Syracuse,New York • Universities Research Association,Incorporated(National Acceleration Lab),Argonne,Illinois • Urban Institute.Washington D.C. • Non-profit insurance companies,such as Blue Cross and Blue Shield Organizations • Other non-profit organizations as negotiated with awarding agencies Top of Page WWW. W3II T I: T) OUSE . (, OV &r espanol I Accessibility I Copyright Information I Privacy Policy i.Contact tJSA.gos' I Subscribe to ASS Feeds i Apply for a Job http://www.whitehouse•gov/omb/circulars_a122_2004/ 7/20/2011 owed in like circumstances in the non-profit organization's non-federally sponsored activities. b. Lodging and subsistence.Costs incurred by employees and officers for travel,including costs of lodging,other subsistence,and incidental expenses,shall be considered reasonable and allowable only to the extent such costs . do not exceed charges normally allowed by the non-profit organization in its regular operations as the result of the non-profit organization's written travel policy.In the absence of an acceptable,written non-profit organization policy regarding travel costs,the rates and amounts established under subchapter I of Chapter 57,Title 5.United States Code("Travel and Subsistence Expenses;Mileage Allowances"),or by the Administrator of General Services,or by the President(or his or her designee)pursuant to any provisions of such subchapter shall apply to travel under Federal awards(48 CFR 31.205-46(a)). c. Commercial air travel. (1)Airfare costs in excess of the customary standard commercial airfare(coach or equivalent),Federal • Government contract airfare(where authorized and available),or the lowest commercial discount airfare are unallowable except when such accommodations would:(a)require circuitous routing;(b)require travel during unreasonable hours;(c)excessively prolong travel;(d)result in additional costs that would offset the transportation savings;or(e)offer accommodations not reasonably adequate for the traveler's medical needs.The non-profit organization must justify and document these conditions on a case-by-case basis in order for the use of first-class airfare to be allowable in such cases. (2)Unless a pattern of avoidance is detected,the Federal Government will generally not question a non-profit organization's determinations that customary standard airfare or other discount airfare is unavailable for specific trips if the non-profit organization can demonstrate either of the following:(a)that such airfare was not available in the specific case;or(b)that it is the non-profit organization's overall practice to make routine use of such airfare. d. Air travel by other than commercial carrier.Costs of travel by non-profit organization-owned,-leased.or-chartered aircraft include the cost of lease,charter,operation(including personnel costs),maintenance,depreciation, insurance,and other related costs.The portion of such costs that exceeds the cost of allowable commercial air travel,as provided for in subparagraph]c.,is unallowable. e. Foreign travel.Direct charges for foreign travel costs are allowable only when the travel has received prior approval of the awarding agency.Each separate foreign trip must receive such approval.For purposes of this provision, "foreign travel"includes any travel outside Canada,Mexico,the United States,and any United States territories and possessions.However,the term"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. • http://www.whitehouse.gov/omb/circulars_aI 22_2004/ 7/20/2011 allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /2011 EXHIBIT . DAVIS BACON EXEMPTION CHECKLIST Project Name: Project Address: Project No. It is determined that the above project is exempt from Davis-Bacon Prevailing Wage Rate Provisions because: Residential rehabilitation or new construction project is funded in whole or in part with CDBG funds and such residential property contains less than 8 units. Residential rehabilitation or new construction contract, including construction and non- construction costs, is funded with HOME funds and such residential property contains less than 12 assisted units. Proceeds of award of federal funds are solely for the acquisition of real property(land, pre-existing buildings and improvements). The entire project consists of demolitions and no construction is eminent on site. Funding solely for demolition to be completed by City or its contractor before transfer of land to developer. Funding for on-site improvements only. On-site improvements are completed on land owned by the City and improvements are completed before transfer of land to developer. Funding for off-site improvements that are separately owned. Off-site and on-site construction are provided for in separate construction contracts. Project funding is for infrastructure improvements owned and operated by utility company. The prime construction contract financed in whole or part with CDBG or HOME funds is incidental and the amount is less than$2,000. Funding for professional services only (legal/acct/architectural/engineering). These services are funded under a separate contract from any construction contract. Funding source is Emergency Shelter Grant (ESG) or Supportive Housing Grant (SHP),which are exempt from Davis/Bacon. The project will be done through a force account. There is no federal money in the construction contract. Other—Explain: Date: Signature of Responsible Administrator A description of the scope of the project is attached. Revised and approved 7/12/2011 corporated(National Acceleration Lab),Argonne,Illinois • Urban Institute.Washington D.C. • Non-profit insurance companies,such as Blue Cross and Blue Shield Organizations • Other non-profit organizations as negotiated with awarding agencies Top of Page WWW. W3II T I: T) OUSE . (, OV &r espanol I Accessibility I Copyright Information I Privacy Policy i.Contact tJSA.gos' I Subscribe to ASS Feeds i Apply for a Job http://www.whitehouse•gov/omb/circulars_a122_2004/ 7/20/2011 owed in like circumstances in the non-profit organization's non-federally sponsored activities. b. Lodging and subsistence.Costs incurred by employees and officers for travel,including costs of lodging,other subsistence,and incidental expenses,shall be considered reasonable and allowable only to the extent such costs . do not exceed charges normally allowed by the non-profit organization in its regular operations as the result of the non-profit organization's written travel policy.In the absence of an acceptable,written non-profit organization policy regarding travel costs,the rates and amounts established under subchapter I of Chapter 57,Title 5.United States Code("Travel and Subsistence Expenses;Mileage Allowances"),or by the Administrator of General Services,or by the President(or his or her designee)pursuant to any provisions of such subchapter shall apply to travel under Federal awards(48 CFR 31.205-46(a)). c. Commercial air travel. (1)Airfare costs in excess of the customary standard commercial airfare(coach or equivalent),Federal • Government contract airfare(where authorized and available),or the lowest commercial discount airfare are unallowable except when such accommodations would:(a)require circuitous routing;(b)require travel during unreasonable hours;(c)excessively prolong travel;(d)result in additional costs that would offset the transportation savings;or(e)offer accommodations not reasonably adequate for the traveler's medical needs.The non-profit organization must justify and document these conditions on a case-by-case basis in order for the use of first-class airfare to be allowable in such cases. (2)Unless a pattern of avoidance is detected,the Federal Government will generally not question a non-profit organization's determinations that customary standard airfare or other discount airfare is unavailable for specific trips if the non-profit organization can demonstrate either of the following:(a)that such airfare was not available in the specific case;or(b)that it is the non-profit organization's overall practice to make routine use of such airfare. d. Air travel by other than commercial carrier.Costs of travel by non-profit organization-owned,-leased.or-chartered aircraft include the cost of lease,charter,operation(including personnel costs),maintenance,depreciation, insurance,and other related costs.The portion of such costs that exceeds the cost of allowable commercial air travel,as provided for in subparagraph]c.,is unallowable. e. Foreign travel.Direct charges for foreign travel costs are allowable only when the travel has received prior approval of the awarding agency.Each separate foreign trip must receive such approval.For purposes of this provision, "foreign travel"includes any travel outside Canada,Mexico,the United States,and any United States territories and possessions.However,the term"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. • http://www.whitehouse.gov/omb/circulars_aI 22_2004/ 7/20/2011 allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /2011 CITY OF OMAHA EXHIBIT AFFIRMATIVE MARKETING POLICY AND MONITORING PROCEDURES Effective: October 1, 1999 Revised: May 1, 2008 Affirmative Marketing Policy In furtherance of the City of Omaha's commitment to non-discrimination and equal opportunity in housing, the City of Omaha establishes procedures to affirmatively market units constructed or rehabilitated under any City-assisted program or project. These procedures are intended to further the objectives of Title VIII of the Civil Rights Act of 1968 and Executive Order 11063. It is the affirmative marketing goal of the City of Omaha to assure that individuals who normally might not apply for vacant rehabilitated or constructed units because of their race or ethnicity: • know about the vacancies • feel welcome to apply • have the opportunity to rent or purchase the units This policy will be carried out through the following procedures: 1. Informing the public, potential tenants and owners about federal fair housing laws and affirmative marketing policies • The City of Omaha will inform the public, potential tenants, purchasers and owners about its affirmative marketing policy, Title VIII and Executive Order 11063. • The City will place public notices in the Omaha World Herald and the North Omaha Star to inform owners of the program. • City representatives will meet with property owners and assist them in preparing program applications as requested and necessary. • Owners selected for a rehabilitation program shall notify in-place tenants in writing of their involvement in the program and provide them with the following options: 1. Remain in the present unit during rehabilitation. 2. Move temporarily to another unit within the project while his/her unit is being rehabilitated. 3. Permanently relocate or voluntarily abandon the unit during the rehabilitation. • Owners shall post the HUD Equal Housing Opportunity Logo in the project building and display the Fair Housing Poster in their rental office. 1 Revised 5/1/08 EQUAL HOUSING OPPORTUNITY • Other non-profit organizations as negotiated with awarding agencies Top of Page WWW. W3II T I: T) OUSE . (, OV &r espanol I Accessibility I Copyright Information I Privacy Policy i.Contact tJSA.gos' I Subscribe to ASS Feeds i Apply for a Job http://www.whitehouse•gov/omb/circulars_a122_2004/ 7/20/2011 owed in like circumstances in the non-profit organization's non-federally sponsored activities. b. Lodging and subsistence.Costs incurred by employees and officers for travel,including costs of lodging,other subsistence,and incidental expenses,shall be considered reasonable and allowable only to the extent such costs . do not exceed charges normally allowed by the non-profit organization in its regular operations as the result of the non-profit organization's written travel policy.In the absence of an acceptable,written non-profit organization policy regarding travel costs,the rates and amounts established under subchapter I of Chapter 57,Title 5.United States Code("Travel and Subsistence Expenses;Mileage Allowances"),or by the Administrator of General Services,or by the President(or his or her designee)pursuant to any provisions of such subchapter shall apply to travel under Federal awards(48 CFR 31.205-46(a)). c. Commercial air travel. (1)Airfare costs in excess of the customary standard commercial airfare(coach or equivalent),Federal • Government contract airfare(where authorized and available),or the lowest commercial discount airfare are unallowable except when such accommodations would:(a)require circuitous routing;(b)require travel during unreasonable hours;(c)excessively prolong travel;(d)result in additional costs that would offset the transportation savings;or(e)offer accommodations not reasonably adequate for the traveler's medical needs.The non-profit organization must justify and document these conditions on a case-by-case basis in order for the use of first-class airfare to be allowable in such cases. (2)Unless a pattern of avoidance is detected,the Federal Government will generally not question a non-profit organization's determinations that customary standard airfare or other discount airfare is unavailable for specific trips if the non-profit organization can demonstrate either of the following:(a)that such airfare was not available in the specific case;or(b)that it is the non-profit organization's overall practice to make routine use of such airfare. d. Air travel by other than commercial carrier.Costs of travel by non-profit organization-owned,-leased.or-chartered aircraft include the cost of lease,charter,operation(including personnel costs),maintenance,depreciation, insurance,and other related costs.The portion of such costs that exceeds the cost of allowable commercial air travel,as provided for in subparagraph]c.,is unallowable. e. Foreign travel.Direct charges for foreign travel costs are allowable only when the travel has received prior approval of the awarding agency.Each separate foreign trip must receive such approval.For purposes of this provision, "foreign travel"includes any travel outside Canada,Mexico,the United States,and any United States territories and possessions.However,the term"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. • http://www.whitehouse.gov/omb/circulars_aI 22_2004/ 7/20/2011 allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /2011 • Owners shall use media accessible to minorities when advertising the availability of units. • Owners shall use the Equal Housing Opportunity logo, slogan or statement in all advertising. ■ Owners shall maintain a non-discriminatory hiring policy. • Owners shall adopt a fair housing policy. 2. Informing low- and moderate-income persons about available units Property Owners having vacant units may call the Omaha Housing Authority (OHA) at 444-6900 and place units on OHA's "Available Unit" list. This list is distributed to families who have received Certificates of Family Participation and are looking for units to rent. The listing will remain on the "Available" list for 35 calendar days, then be removed. If still vacant, the property may be relisted. If the property is not listed with OHA when rehabilitated or constructed units are available for initial occupancy, the owner shall inform the following outreach agencies and/or other agencies of this fact in writing and submit a copy of the letters to the City of Omaha, Planning Department, Housing and Community Development Division, Loan Section, 1819 Farnam Street, Room 1111, Omaha, Nebraska, 68183. Chicano Awareness Center, Inc. Urban League of Nebraska 4821 South 24th Street 3022 North 24th Street Omaha,NE 68107 Omaha,NE 68111 Family Housing Advisory Services Community Alliance 2401 Lake Street 4001 Leavenworth Street Omaha,NE 68111 Omaha,NE 68105 Eastern Nebraska Human Services Heartland Family Service 900 South 74th Plaza, Suite 200 2101 South 42nd Street Omaha,NE 68114 Omaha,NE 68105 Greater Omaha Community Action Heartland Family Service 2406 Fowler Avenue 6720 North 30th Street Omaha,NE 68111 Omaha,NE 68112 Greater Omaha Community Action Heartland Family Service 5002 South 24th Street, Suite 203 2580 South 90th Street Omaha,NE 68111 Omaha,NE 68124 League of Human Dignity Heartland Family Service 5513 Center Street 11212 Davenport Street Omaha,NE 68106 Omaha,NE 68154 Heartland Family Service Nebraska Commission for the Deaf 116 E. Mission Avenue 1313 Farnam on the Mall Bellevue,NE 68005 Omaha,NE 68102 2 Revised 5/1/08 mation I Privacy Policy i.Contact tJSA.gos' I Subscribe to ASS Feeds i Apply for a Job http://www.whitehouse•gov/omb/circulars_a122_2004/ 7/20/2011 owed in like circumstances in the non-profit organization's non-federally sponsored activities. b. Lodging and subsistence.Costs incurred by employees and officers for travel,including costs of lodging,other subsistence,and incidental expenses,shall be considered reasonable and allowable only to the extent such costs . do not exceed charges normally allowed by the non-profit organization in its regular operations as the result of the non-profit organization's written travel policy.In the absence of an acceptable,written non-profit organization policy regarding travel costs,the rates and amounts established under subchapter I of Chapter 57,Title 5.United States Code("Travel and Subsistence Expenses;Mileage Allowances"),or by the Administrator of General Services,or by the President(or his or her designee)pursuant to any provisions of such subchapter shall apply to travel under Federal awards(48 CFR 31.205-46(a)). c. Commercial air travel. (1)Airfare costs in excess of the customary standard commercial airfare(coach or equivalent),Federal • Government contract airfare(where authorized and available),or the lowest commercial discount airfare are unallowable except when such accommodations would:(a)require circuitous routing;(b)require travel during unreasonable hours;(c)excessively prolong travel;(d)result in additional costs that would offset the transportation savings;or(e)offer accommodations not reasonably adequate for the traveler's medical needs.The non-profit organization must justify and document these conditions on a case-by-case basis in order for the use of first-class airfare to be allowable in such cases. (2)Unless a pattern of avoidance is detected,the Federal Government will generally not question a non-profit organization's determinations that customary standard airfare or other discount airfare is unavailable for specific trips if the non-profit organization can demonstrate either of the following:(a)that such airfare was not available in the specific case;or(b)that it is the non-profit organization's overall practice to make routine use of such airfare. d. Air travel by other than commercial carrier.Costs of travel by non-profit organization-owned,-leased.or-chartered aircraft include the cost of lease,charter,operation(including personnel costs),maintenance,depreciation, insurance,and other related costs.The portion of such costs that exceeds the cost of allowable commercial air travel,as provided for in subparagraph]c.,is unallowable. e. Foreign travel.Direct charges for foreign travel costs are allowable only when the travel has received prior approval of the awarding agency.Each separate foreign trip must receive such approval.For purposes of this provision, "foreign travel"includes any travel outside Canada,Mexico,the United States,and any United States territories and possessions.However,the term"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. • http://www.whitehouse.gov/omb/circulars_aI 22_2004/ 7/20/2011 allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /2011 Heartland Family Service Omaha Association for the Blind 302 American Parkway 1024 South 32nd Street Papillion,NE 68046 Omaha,NE 68105 Holy Name Housing Corporation Great Plains Chapter 3014 North 45th Street Paralyzed Veterans of America Omaha,NE 68104 7612 Maple Street Omaha,NE 68134 Mayor's Commission for Citizens with Disabilities 1819 Farnam Street, Room 304 Omaha,NE 68183 3. Record Keeping The Owner shall keep records of the following: • Local media advertisements of the vacant unit • Contact dates with outreach agencies and Omaha Housing Authority • Correspondence informing outreach agencies of vacancies • Race and other demographic data of occupants and persons inquiring about availability of units • Tenant Survey, utility allowance and income determination forms signed and dated by Owner • Name and age of all household members • Verified income for each household • Copy of lease 4. Assessment of Actions The Owner's affirmative marketing efforts will be assessed by the City to: • determine whether Owners have affirmatively marketed vacant units to individuals who normally might not apply; and, • determine whether.a sufficient number of racial and ethnic families have applied for vacant units The City will take corrective action if it is found that property owners are not carrying out established procedures of the City's Affirmative Marketing Policy and Monitoring Procedures. 3 Revised 5/1/08 111E1 EQUAL HOUSING OPPORTUNITY Omaha,NE 68105 Greater Omaha Community Action Heartland Family Service 2406 Fowler Avenue 6720 North 30th Street Omaha,NE 68111 Omaha,NE 68112 Greater Omaha Community Action Heartland Family Service 5002 South 24th Street, Suite 203 2580 South 90th Street Omaha,NE 68111 Omaha,NE 68124 League of Human Dignity Heartland Family Service 5513 Center Street 11212 Davenport Street Omaha,NE 68106 Omaha,NE 68154 Heartland Family Service Nebraska Commission for the Deaf 116 E. Mission Avenue 1313 Farnam on the Mall Bellevue,NE 68005 Omaha,NE 68102 2 Revised 5/1/08 mation I Privacy Policy i.Contact tJSA.gos' I Subscribe to ASS Feeds i Apply for a Job http://www.whitehouse•gov/omb/circulars_a122_2004/ 7/20/2011 owed in like circumstances in the non-profit organization's non-federally sponsored activities. b. Lodging and subsistence.Costs incurred by employees and officers for travel,including costs of lodging,other subsistence,and incidental expenses,shall be considered reasonable and allowable only to the extent such costs . do not exceed charges normally allowed by the non-profit organization in its regular operations as the result of the non-profit organization's written travel policy.In the absence of an acceptable,written non-profit organization policy regarding travel costs,the rates and amounts established under subchapter I of Chapter 57,Title 5.United States Code("Travel and Subsistence Expenses;Mileage Allowances"),or by the Administrator of General Services,or by the President(or his or her designee)pursuant to any provisions of such subchapter shall apply to travel under Federal awards(48 CFR 31.205-46(a)). c. Commercial air travel. (1)Airfare costs in excess of the customary standard commercial airfare(coach or equivalent),Federal • Government contract airfare(where authorized and available),or the lowest commercial discount airfare are unallowable except when such accommodations would:(a)require circuitous routing;(b)require travel during unreasonable hours;(c)excessively prolong travel;(d)result in additional costs that would offset the transportation savings;or(e)offer accommodations not reasonably adequate for the traveler's medical needs.The non-profit organization must justify and document these conditions on a case-by-case basis in order for the use of first-class airfare to be allowable in such cases. (2)Unless a pattern of avoidance is detected,the Federal Government will generally not question a non-profit organization's determinations that customary standard airfare or other discount airfare is unavailable for specific trips if the non-profit organization can demonstrate either of the following:(a)that such airfare was not available in the specific case;or(b)that it is the non-profit organization's overall practice to make routine use of such airfare. d. Air travel by other than commercial carrier.Costs of travel by non-profit organization-owned,-leased.or-chartered aircraft include the cost of lease,charter,operation(including personnel costs),maintenance,depreciation, insurance,and other related costs.The portion of such costs that exceeds the cost of allowable commercial air travel,as provided for in subparagraph]c.,is unallowable. e. Foreign travel.Direct charges for foreign travel costs are allowable only when the travel has received prior approval of the awarding agency.Each separate foreign trip must receive such approval.For purposes of this provision, "foreign travel"includes any travel outside Canada,Mexico,the United States,and any United States territories and possessions.However,the term"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. • http://www.whitehouse.gov/omb/circulars_aI 22_2004/ 7/20/2011 allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /2011 1 Affirmative Marketing Policy Monitoring Procedures 1. Duties and Responsibilities of the Owner a) The Owner shall post the HUD Equal Housing Opportunity Logo in the project building and in the rental or sales office. b) The Owner shall submit to•the City a copy of all letters notifying the outreach agencies of vacancies. Outreach agencies may include, but are not limited to, the agencies listed in Item 2, Page 2. c) The Owner shall submit to the City a copy of all advertisements placed in the local • newspapers. All advertisements must include the Equal Housing Opportunity Logo, Slogan or Statement. d) The Owner shall submit to the City a Demographics for Applicant, attached as Exhibit 1, which includes the name, racial/ethnic characteristics, income and family size for each person responding to the advertisement. e) The Owner shall meet with each in-place tenants of the occupied vacant units and complete a Tenant Survey, utility allowance and computing annual income form. A copy of each form is attached and marked Exhibit 2. f) The Owner shall submit to the City the original Tenant Survey, utility allowance, income determination form (signed and dated by Owner) and a copy of the lease agreement and retain a copy for proper record keeping: Forms must be updated on lease anniversary date and submitted to the City. g) The Owner shall provide each in-place tenant in the project with a copy.of the City of Omaha's written Tenant Assistance Policy (TAP) and shall advise said tenant(s) of the impact of the project on him or her. The Owner shall provide the TAP to the tenant immediately after submission of the Owner's application for participation in the City's program. h) After completion of the project, the Owner shall submit a Tenant Survey, utility allowance and income determination form (signed and dated by Owner) for each occupied unit and a copy of the lease agreement. i) Owner shall insure that the rents, including utilities and Median Family Income, are consistent with the terms and conditions in the approved Agreement between the Owner and the City of Omaha • 4 Revised 5/1/08 EQUAL HOUSING OPPORTUNITY Omaha,NE 68102 2 Revised 5/1/08 mation I Privacy Policy i.Contact tJSA.gos' I Subscribe to ASS Feeds i Apply for a Job http://www.whitehouse•gov/omb/circulars_a122_2004/ 7/20/2011 owed in like circumstances in the non-profit organization's non-federally sponsored activities. b. Lodging and subsistence.Costs incurred by employees and officers for travel,including costs of lodging,other subsistence,and incidental expenses,shall be considered reasonable and allowable only to the extent such costs . do not exceed charges normally allowed by the non-profit organization in its regular operations as the result of the non-profit organization's written travel policy.In the absence of an acceptable,written non-profit organization policy regarding travel costs,the rates and amounts established under subchapter I of Chapter 57,Title 5.United States Code("Travel and Subsistence Expenses;Mileage Allowances"),or by the Administrator of General Services,or by the President(or his or her designee)pursuant to any provisions of such subchapter shall apply to travel under Federal awards(48 CFR 31.205-46(a)). c. Commercial air travel. (1)Airfare costs in excess of the customary standard commercial airfare(coach or equivalent),Federal • Government contract airfare(where authorized and available),or the lowest commercial discount airfare are unallowable except when such accommodations would:(a)require circuitous routing;(b)require travel during unreasonable hours;(c)excessively prolong travel;(d)result in additional costs that would offset the transportation savings;or(e)offer accommodations not reasonably adequate for the traveler's medical needs.The non-profit organization must justify and document these conditions on a case-by-case basis in order for the use of first-class airfare to be allowable in such cases. (2)Unless a pattern of avoidance is detected,the Federal Government will generally not question a non-profit organization's determinations that customary standard airfare or other discount airfare is unavailable for specific trips if the non-profit organization can demonstrate either of the following:(a)that such airfare was not available in the specific case;or(b)that it is the non-profit organization's overall practice to make routine use of such airfare. d. Air travel by other than commercial carrier.Costs of travel by non-profit organization-owned,-leased.or-chartered aircraft include the cost of lease,charter,operation(including personnel costs),maintenance,depreciation, insurance,and other related costs.The portion of such costs that exceeds the cost of allowable commercial air travel,as provided for in subparagraph]c.,is unallowable. e. Foreign travel.Direct charges for foreign travel costs are allowable only when the travel has received prior approval of the awarding agency.Each separate foreign trip must receive such approval.For purposes of this provision, "foreign travel"includes any travel outside Canada,Mexico,the United States,and any United States territories and possessions.However,the term"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. • http://www.whitehouse.gov/omb/circulars_aI 22_2004/ 7/20/2011 allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /2011 2. Duties and Responsibilities of the City a) The City shall assess the affirmative marketing procedures to determine whether the Owner has affirmatively marketed the vacant units by monitoring the Owner's performance in carrying out the Duties and Responsibilities of the Owner as outlined in Section 1. b) The City shall assess the affirmative marketing efforts of the Owner to determine whether a sufficient number of racial and ethnic families have applied for vacant units. This determination will be made by reviewing the information provided on the Demographics Form for Applicant and Tenant Survey Form to determine the proportion of racial/gender participation versus overall participation. c) The City shall take the following corrective action if it is found that the Owner is not carrying out established procedures of affirmatively marketing units: • Notify the Owner in writing of any violations of the Owner's Duties and Responsibilities. • The Owner will be given thirty (30) days upon receipt of written notification to provide evidence of compliance. Upon the Owner's request, the City will provide technical assistance. • If the Owner fails to comply with the Affirmative Marketing Policy and Monitoring Procedures, the City may declare the loan/grant in default. 5 Revised 5/1/08 EQUAL HOUSING OPPORTUNITY g) The Owner shall provide each in-place tenant in the project with a copy.of the City of Omaha's written Tenant Assistance Policy (TAP) and shall advise said tenant(s) of the impact of the project on him or her. The Owner shall provide the TAP to the tenant immediately after submission of the Owner's application for participation in the City's program. h) After completion of the project, the Owner shall submit a Tenant Survey, utility allowance and income determination form (signed and dated by Owner) for each occupied unit and a copy of the lease agreement. i) Owner shall insure that the rents, including utilities and Median Family Income, are consistent with the terms and conditions in the approved Agreement between the Owner and the City of Omaha • 4 Revised 5/1/08 EQUAL HOUSING OPPORTUNITY Omaha,NE 68102 2 Revised 5/1/08 mation I Privacy Policy i.Contact tJSA.gos' I Subscribe to ASS Feeds i Apply for a Job http://www.whitehouse•gov/omb/circulars_a122_2004/ 7/20/2011 owed in like circumstances in the non-profit organization's non-federally sponsored activities. b. Lodging and subsistence.Costs incurred by employees and officers for travel,including costs of lodging,other subsistence,and incidental expenses,shall be considered reasonable and allowable only to the extent such costs . do not exceed charges normally allowed by the non-profit organization in its regular operations as the result of the non-profit organization's written travel policy.In the absence of an acceptable,written non-profit organization policy regarding travel costs,the rates and amounts established under subchapter I of Chapter 57,Title 5.United States Code("Travel and Subsistence Expenses;Mileage Allowances"),or by the Administrator of General Services,or by the President(or his or her designee)pursuant to any provisions of such subchapter shall apply to travel under Federal awards(48 CFR 31.205-46(a)). c. Commercial air travel. (1)Airfare costs in excess of the customary standard commercial airfare(coach or equivalent),Federal • Government contract airfare(where authorized and available),or the lowest commercial discount airfare are unallowable except when such accommodations would:(a)require circuitous routing;(b)require travel during unreasonable hours;(c)excessively prolong travel;(d)result in additional costs that would offset the transportation savings;or(e)offer accommodations not reasonably adequate for the traveler's medical needs.The non-profit organization must justify and document these conditions on a case-by-case basis in order for the use of first-class airfare to be allowable in such cases. (2)Unless a pattern of avoidance is detected,the Federal Government will generally not question a non-profit organization's determinations that customary standard airfare or other discount airfare is unavailable for specific trips if the non-profit organization can demonstrate either of the following:(a)that such airfare was not available in the specific case;or(b)that it is the non-profit organization's overall practice to make routine use of such airfare. d. Air travel by other than commercial carrier.Costs of travel by non-profit organization-owned,-leased.or-chartered aircraft include the cost of lease,charter,operation(including personnel costs),maintenance,depreciation, insurance,and other related costs.The portion of such costs that exceeds the cost of allowable commercial air travel,as provided for in subparagraph]c.,is unallowable. e. Foreign travel.Direct charges for foreign travel costs are allowable only when the travel has received prior approval of the awarding agency.Each separate foreign trip must receive such approval.For purposes of this provision, "foreign travel"includes any travel outside Canada,Mexico,the United States,and any United States territories and possessions.However,the term"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. • http://www.whitehouse.gov/omb/circulars_aI 22_2004/ 7/20/2011 allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /2011 EXHIBIT 1 CITY OF OMAHA DEMOGRAPHICS FORM FOR APPLICANTS Loan No. Date No. of Vacant Units Owner Project Address Person Completing Person's Phone No. This Report Home: Work Race/Ethnicity Family Monthly Of Head of Applicant Size Income Household $ NOTE: This form is a list of everyone who inquired about renting or purchasing the unit(s). EQUAL HOUSING Revised 5/1/08 OPPORTUNITY roperty 7Cc Ed Dantz er, Develop ection Manager Dat Robert Manners, Section 504 Officer Date 7 BCD `` .• p, ' -AD p , , p, • '-' A(• c� a `b �O``s o 2 `n a' f ' 'bO `° 7� Et) CD CD CD 0 'C AD UQ rn CD Ao En kC . CD A3 Cn 1 x Z $ - • Circular No. A-133 Revised to show changes published in the Federal Register June 27, 2003 and June 26, 2007 Audits of States,Local Governments, and Non-Profit Organizations Accompanying Federal Register Materials: --Audits of States, Local Governments, and Non-Profit Organizations June 30, 1997 - - Revision published June 27, 2003 This revision: (1) increased the dollar threshold for the audit requirement; and (2) made changes regarding determination of cognizant and oversight agencies for audit. - - Revision published June 26, 2007 This revision: (1) replaced the term "reportable conditions"with "significant deficiencies" to conform with current auditing standards; and (2) updated report submission requirements. Definition of"significant deficiencies" and "material weaknesses" are as defined in generally accepted auditing standards issued by the American Institute of Certified Public Accountants (AICPA) and Government Auditing Standards issued by the Government Accountability Office. [Note: The June 27, 2003 revisions: (1) increased the dollar threshold for the audit requirement, and (2) made changes regarding determination of cognizant and oversight agencies for audit. The June 26, 2007 revisions make changes to (1)to replace the terms "reportable conditions"with "significant deficiencies"to conform with changes in auditing standards; and (2) reporting submission requirements. In several places, the Circular includes guidelines for the reporting of"significant deficiencies" and "material weaknesses."These terms are to be used as defined in generally accepted auditing standards issued by the American Institute of Certified Public Accountants (AICPA), and Government Auditing Standards issued by the Government Accountability Office.] rogram. h) After completion of the project, the Owner shall submit a Tenant Survey, utility allowance and income determination form (signed and dated by Owner) for each occupied unit and a copy of the lease agreement. i) Owner shall insure that the rents, including utilities and Median Family Income, are consistent with the terms and conditions in the approved Agreement between the Owner and the City of Omaha • 4 Revised 5/1/08 EQUAL HOUSING OPPORTUNITY Omaha,NE 68102 2 Revised 5/1/08 mation I Privacy Policy i.Contact tJSA.gos' I Subscribe to ASS Feeds i Apply for a Job http://www.whitehouse•gov/omb/circulars_a122_2004/ 7/20/2011 owed in like circumstances in the non-profit organization's non-federally sponsored activities. b. Lodging and subsistence.Costs incurred by employees and officers for travel,including costs of lodging,other subsistence,and incidental expenses,shall be considered reasonable and allowable only to the extent such costs . do not exceed charges normally allowed by the non-profit organization in its regular operations as the result of the non-profit organization's written travel policy.In the absence of an acceptable,written non-profit organization policy regarding travel costs,the rates and amounts established under subchapter I of Chapter 57,Title 5.United States Code("Travel and Subsistence Expenses;Mileage Allowances"),or by the Administrator of General Services,or by the President(or his or her designee)pursuant to any provisions of such subchapter shall apply to travel under Federal awards(48 CFR 31.205-46(a)). c. Commercial air travel. (1)Airfare costs in excess of the customary standard commercial airfare(coach or equivalent),Federal • Government contract airfare(where authorized and available),or the lowest commercial discount airfare are unallowable except when such accommodations would:(a)require circuitous routing;(b)require travel during unreasonable hours;(c)excessively prolong travel;(d)result in additional costs that would offset the transportation savings;or(e)offer accommodations not reasonably adequate for the traveler's medical needs.The non-profit organization must justify and document these conditions on a case-by-case basis in order for the use of first-class airfare to be allowable in such cases. (2)Unless a pattern of avoidance is detected,the Federal Government will generally not question a non-profit organization's determinations that customary standard airfare or other discount airfare is unavailable for specific trips if the non-profit organization can demonstrate either of the following:(a)that such airfare was not available in the specific case;or(b)that it is the non-profit organization's overall practice to make routine use of such airfare. d. Air travel by other than commercial carrier.Costs of travel by non-profit organization-owned,-leased.or-chartered aircraft include the cost of lease,charter,operation(including personnel costs),maintenance,depreciation, insurance,and other related costs.The portion of such costs that exceeds the cost of allowable commercial air travel,as provided for in subparagraph]c.,is unallowable. e. Foreign travel.Direct charges for foreign travel costs are allowable only when the travel has received prior approval of the awarding agency.Each separate foreign trip must receive such approval.For purposes of this provision, "foreign travel"includes any travel outside Canada,Mexico,the United States,and any United States territories and possessions.However,the term"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. • http://www.whitehouse.gov/omb/circulars_aI 22_2004/ 7/20/2011 allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /2011 • Circular No. A-133 Revised to show changes published in the Federal Registers of June 27, 2003 and June 26, 2007 Audits of States, Local Governments, and Non-Profit Organizations TO THE HEADS OF EXECUTIVE DEPARTMENTS AND ESTABLISHMENTS SUBJECT: Audits of States, Local Governments, and Non-Profit Organizations 1. Purpose. This Circular is issued pursuant to the Single Audit Act of 1984, P.L. 98-502, and the Single Audit Act Amendments of 1996, P.L. 104-156. It sets forth standards for obtaining consistency and uniformity among Federal agencies for the audit of States, local governments, and non-profit organizations expending Federal awards. 2. Authority. Circular A-133 is issued under the authority of sections 503, 1111, and 7501 et seq. of title 31, United States Code, and Executive Orders 8248 and 11541. 3. Rescission and Supersession. This Circular rescinds Circular A-128, "Audits of State and Local Governments, " issued April 12, 1985, and supersedes the prior Circular A-133, "Audits of Institutions of Higher Education and Other Non-Profit Institutions, " issued April 22, 1996. For effective dates, see paragraph 10. 4. Policy. Except as provided herein, the standards set forth in this Circular shall be applied by all Federal agencies. If any statute specifically prescribes policies or specific requirements that differ from the standards provided herein, the provisions of the subsequent statute shall govern. Federal agencies shall apply the provisions of the sections of this Circular to non-Federal entities, whether they are recipients expending Federal awards received directly from Federal awarding agencies, or are subrecipients expending Federal awards received from a pass-through entity (a recipient or another subrecipient) . This Circular does not apply to non-U.S. based entities expending Federal awards received either directly as a recipient or indirectly as a subrecipient. 5. Definitions. The definitions of key terms used in this Circular are contained in § .105 in the Attachment to this Circular. 6. Required Action. The specific requirements and responsibilities of Federal agencies and non-Federal entities are set forth in the Attachment to this Circular. Federal agencies making awards to non-Federal entities, either directly or indirectly, shall adopt the language in the Circular in codified regulations as provided in Section 10 (below) , unless different provisions are required by Federal statute or are approved by the Office of Management and Budget (OMB) . 7. OMB Responsibilities. OMB will review Federal agency regulations and implementation of this Circular, and will provide interpretations of policy requirements and assistance to ensure uniform, effective and efficient implementation. 8. Information Contact . Further information concerning Circular A-133 may be obtained by contacting the Financial Standards and Reporting Branch, Office of Federal Financial Management, Office of Management and Budget, Washington, DC 20503, telephone (202) 395-3993. 1 r shall apply to travel under Federal awards(48 CFR 31.205-46(a)). c. Commercial air travel. (1)Airfare costs in excess of the customary standard commercial airfare(coach or equivalent),Federal • Government contract airfare(where authorized and available),or the lowest commercial discount airfare are unallowable except when such accommodations would:(a)require circuitous routing;(b)require travel during unreasonable hours;(c)excessively prolong travel;(d)result in additional costs that would offset the transportation savings;or(e)offer accommodations not reasonably adequate for the traveler's medical needs.The non-profit organization must justify and document these conditions on a case-by-case basis in order for the use of first-class airfare to be allowable in such cases. (2)Unless a pattern of avoidance is detected,the Federal Government will generally not question a non-profit organization's determinations that customary standard airfare or other discount airfare is unavailable for specific trips if the non-profit organization can demonstrate either of the following:(a)that such airfare was not available in the specific case;or(b)that it is the non-profit organization's overall practice to make routine use of such airfare. d. Air travel by other than commercial carrier.Costs of travel by non-profit organization-owned,-leased.or-chartered aircraft include the cost of lease,charter,operation(including personnel costs),maintenance,depreciation, insurance,and other related costs.The portion of such costs that exceeds the cost of allowable commercial air travel,as provided for in subparagraph]c.,is unallowable. e. Foreign travel.Direct charges for foreign travel costs are allowable only when the travel has received prior approval of the awarding agency.Each separate foreign trip must receive such approval.For purposes of this provision, "foreign travel"includes any travel outside Canada,Mexico,the United States,and any United States territories and possessions.However,the term"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. • http://www.whitehouse.gov/omb/circulars_aI 22_2004/ 7/20/2011 allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /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 The revisions published in the Federal Register June 26, 2007, are effective for fiscal years ending on or after December 15, 2006. Rob Portman Director Attachment • • 2 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 r shall apply to travel under Federal awards(48 CFR 31.205-46(a)). c. Commercial air travel. (1)Airfare costs in excess of the customary standard commercial airfare(coach or equivalent),Federal • Government contract airfare(where authorized and available),or the lowest commercial discount airfare are unallowable except when such accommodations would:(a)require circuitous routing;(b)require travel during unreasonable hours;(c)excessively prolong travel;(d)result in additional costs that would offset the transportation savings;or(e)offer accommodations not reasonably adequate for the traveler's medical needs.The non-profit organization must justify and document these conditions on a case-by-case basis in order for the use of first-class airfare to be allowable in such cases. (2)Unless a pattern of avoidance is detected,the Federal Government will generally not question a non-profit organization's determinations that customary standard airfare or other discount airfare is unavailable for specific trips if the non-profit organization can demonstrate either of the following:(a)that such airfare was not available in the specific case;or(b)that it is the non-profit organization's overall practice to make routine use of such airfare. d. Air travel by other than commercial carrier.Costs of travel by non-profit organization-owned,-leased.or-chartered aircraft include the cost of lease,charter,operation(including personnel costs),maintenance,depreciation, insurance,and other related costs.The portion of such costs that exceeds the cost of allowable commercial air travel,as provided for in subparagraph]c.,is unallowable. e. Foreign travel.Direct charges for foreign travel costs are allowable only when the travel has received prior approval of the awarding agency.Each separate foreign trip must receive such approval.For purposes of this provision, "foreign travel"includes any travel outside Canada,Mexico,the United States,and any United States territories and possessions.However,the term"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. • http://www.whitehouse.gov/omb/circulars_aI 22_2004/ 7/20/2011 allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /2011 PART_ --AUDITS OF STATES, LOCAL GOVERNMENTS, AND NON-PROFIT ORGANIZATIONS Subpart A--General Sec. .100 Purpose. .105 Definitions. Subpart B--Audits .200 Audit requirements. .205 Basis for determining Federal awards expended. .210 Subrecipient and vendor determinations. .215 Relation to other audit requirements. .220 Frequency of audits. .225 Sanctions. .230 Audit costs. .235 Program-specific audits. Subpart C--Auditees .300 Auditee responsibilities. .305 Auditor selection. .310 Financial statements. _.315 Audit findings follow-up. .320 Report submission. Subpart D--Federal Agencies and Pass-Through Entities .400 Responsibilities. .405 Management decision. Subpart E--Auditors .500 Scope of audit. .505 Audit reporting. .510 Audit findings. .515 Audit working papers. .520 Major program determination. .525 Criteria for Federal program risk. .530 Criteria for a low-risk auditee. Appendix A to Part _ - Data Collection Form (Form SF-SAC) . Appendix B to Part - Circular A-133 Compliance Supplement. 3 g after December 31, 2003, and early implementation is not permitted with the exception of the definition of oversight agency for audit which is effective July 28, 2003. Augustine T. Smythe Acting Director The revisions published in the Federal Register June 26, 2007, are effective for fiscal years ending on or after December 15, 2006. Rob Portman Director Attachment • • 2 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 r shall apply to travel under Federal awards(48 CFR 31.205-46(a)). c. Commercial air travel. (1)Airfare costs in excess of the customary standard commercial airfare(coach or equivalent),Federal • Government contract airfare(where authorized and available),or the lowest commercial discount airfare are unallowable except when such accommodations would:(a)require circuitous routing;(b)require travel during unreasonable hours;(c)excessively prolong travel;(d)result in additional costs that would offset the transportation savings;or(e)offer accommodations not reasonably adequate for the traveler's medical needs.The non-profit organization must justify and document these conditions on a case-by-case basis in order for the use of first-class airfare to be allowable in such cases. (2)Unless a pattern of avoidance is detected,the Federal Government will generally not question a non-profit organization's determinations that customary standard airfare or other discount airfare is unavailable for specific trips if the non-profit organization can demonstrate either of the following:(a)that such airfare was not available in the specific case;or(b)that it is the non-profit organization's overall practice to make routine use of such airfare. d. Air travel by other than commercial carrier.Costs of travel by non-profit organization-owned,-leased.or-chartered aircraft include the cost of lease,charter,operation(including personnel costs),maintenance,depreciation, insurance,and other related costs.The portion of such costs that exceeds the cost of allowable commercial air travel,as provided for in subparagraph]c.,is unallowable. e. Foreign travel.Direct charges for foreign travel costs are allowable only when the travel has received prior approval of the awarding agency.Each separate foreign trip must receive such approval.For purposes of this provision, "foreign travel"includes any travel outside Canada,Mexico,the United States,and any United States territories and possessions.However,the term"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. • http://www.whitehouse.gov/omb/circulars_aI 22_2004/ 7/20/2011 allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /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 (OMB) in the compliance supplement or as designated by a State for Federal awards the State provides to its subrecipients that meet the definition of a cluster of programs. When designating an "other cluster, " a State shall identify the Federal awards included in the cluster and advise the subrecipients of compliance requirements applicable to the cluster, consistent with S .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 entation. 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 r shall apply to travel under Federal awards(48 CFR 31.205-46(a)). c. Commercial air travel. (1)Airfare costs in excess of the customary standard commercial airfare(coach or equivalent),Federal • Government contract airfare(where authorized and available),or the lowest commercial discount airfare are unallowable except when such accommodations would:(a)require circuitous routing;(b)require travel during unreasonable hours;(c)excessively prolong travel;(d)result in additional costs that would offset the transportation savings;or(e)offer accommodations not reasonably adequate for the traveler's medical needs.The non-profit organization must justify and document these conditions on a case-by-case basis in order for the use of first-class airfare to be allowable in such cases. (2)Unless a pattern of avoidance is detected,the Federal Government will generally not question a non-profit organization's determinations that customary standard airfare or other discount airfare is unavailable for specific trips if the non-profit organization can demonstrate either of the following:(a)that such airfare was not available in the specific case;or(b)that it is the non-profit organization's overall practice to make routine use of such airfare. d. Air travel by other than commercial carrier.Costs of travel by non-profit organization-owned,-leased.or-chartered aircraft include the cost of lease,charter,operation(including personnel costs),maintenance,depreciation, insurance,and other related costs.The portion of such costs that exceeds the cost of allowable commercial air travel,as provided for in subparagraph]c.,is unallowable. e. Foreign travel.Direct charges for foreign travel costs are allowable only when the travel has received prior approval of the awarding agency.Each separate foreign trip must receive such approval.For purposes of this provision, "foreign travel"includes any travel outside Canada,Mexico,the United States,and any United States territories and possessions.However,the term"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. • http://www.whitehouse.gov/omb/circulars_aI 22_2004/ 7/20/2011 allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /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 entities receive directly from Federal awarding agencies or indirectly from pass-through entities. It does 4 entation. 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 r shall apply to travel under Federal awards(48 CFR 31.205-46(a)). c. Commercial air travel. (1)Airfare costs in excess of the customary standard commercial airfare(coach or equivalent),Federal • Government contract airfare(where authorized and available),or the lowest commercial discount airfare are unallowable except when such accommodations would:(a)require circuitous routing;(b)require travel during unreasonable hours;(c)excessively prolong travel;(d)result in additional costs that would offset the transportation savings;or(e)offer accommodations not reasonably adequate for the traveler's medical needs.The non-profit organization must justify and document these conditions on a case-by-case basis in order for the use of first-class airfare to be allowable in such cases. (2)Unless a pattern of avoidance is detected,the Federal Government will generally not question a non-profit organization's determinations that customary standard airfare or other discount airfare is unavailable for specific trips if the non-profit organization can demonstrate either of the following:(a)that such airfare was not available in the specific case;or(b)that it is the non-profit organization's overall practice to make routine use of such airfare. d. Air travel by other than commercial carrier.Costs of travel by non-profit organization-owned,-leased.or-chartered aircraft include the cost of lease,charter,operation(including personnel costs),maintenance,depreciation, insurance,and other related costs.The portion of such costs that exceeds the cost of allowable commercial air travel,as provided for in subparagraph]c.,is unallowable. e. Foreign travel.Direct charges for foreign travel costs are allowable only when the travel has received prior approval of the awarding agency.Each separate foreign trip must receive such approval.For purposes of this provision, "foreign travel"includes any travel outside Canada,Mexico,the United States,and any United States territories and possessions.However,the term"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. • http://www.whitehouse.gov/omb/circulars_aI 22_2004/ 7/20/2011 allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /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. 6 4 ide 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 entities receive directly from Federal awarding agencies or indirectly from pass-through entities. It does 4 entation. 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 r shall apply to travel under Federal awards(48 CFR 31.205-46(a)). c. Commercial air travel. (1)Airfare costs in excess of the customary standard commercial airfare(coach or equivalent),Federal • Government contract airfare(where authorized and available),or the lowest commercial discount airfare are unallowable except when such accommodations would:(a)require circuitous routing;(b)require travel during unreasonable hours;(c)excessively prolong travel;(d)result in additional costs that would offset the transportation savings;or(e)offer accommodations not reasonably adequate for the traveler's medical needs.The non-profit organization must justify and document these conditions on a case-by-case basis in order for the use of first-class airfare to be allowable in such cases. (2)Unless a pattern of avoidance is detected,the Federal Government will generally not question a non-profit organization's determinations that customary standard airfare or other discount airfare is unavailable for specific trips if the non-profit organization can demonstrate either of the following:(a)that such airfare was not available in the specific case;or(b)that it is the non-profit organization's overall practice to make routine use of such airfare. d. Air travel by other than commercial carrier.Costs of travel by non-profit organization-owned,-leased.or-chartered aircraft include the cost of lease,charter,operation(including personnel costs),maintenance,depreciation, insurance,and other related costs.The portion of such costs that exceeds the cost of allowable commercial air travel,as provided for in subparagraph]c.,is unallowable. e. Foreign travel.Direct charges for foreign travel costs are allowable only when the travel has received prior approval of the awarding agency.Each separate foreign trip must receive such approval.For purposes of this provision, "foreign travel"includes any travel outside Canada,Mexico,the United States,and any United States territories and possessions.However,the term"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. • http://www.whitehouse.gov/omb/circulars_aI 22_2004/ 7/20/2011 allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /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 §_.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 acting the Financial Standards and Reporting Branch, Office of Federal Financial Management, Office of Management and Budget, Washington, DC 20503, telephone (202) 395-3993. 1 r shall apply to travel under Federal awards(48 CFR 31.205-46(a)). c. Commercial air travel. (1)Airfare costs in excess of the customary standard commercial airfare(coach or equivalent),Federal • Government contract airfare(where authorized and available),or the lowest commercial discount airfare are unallowable except when such accommodations would:(a)require circuitous routing;(b)require travel during unreasonable hours;(c)excessively prolong travel;(d)result in additional costs that would offset the transportation savings;or(e)offer accommodations not reasonably adequate for the traveler's medical needs.The non-profit organization must justify and document these conditions on a case-by-case basis in order for the use of first-class airfare to be allowable in such cases. (2)Unless a pattern of avoidance is detected,the Federal Government will generally not question a non-profit organization's determinations that customary standard airfare or other discount airfare is unavailable for specific trips if the non-profit organization can demonstrate either of the following:(a)that such airfare was not available in the specific case;or(b)that it is the non-profit organization's overall practice to make routine use of such airfare. d. Air travel by other than commercial carrier.Costs of travel by non-profit organization-owned,-leased.or-chartered aircraft include the cost of lease,charter,operation(including personnel costs),maintenance,depreciation, insurance,and other related costs.The portion of such costs that exceeds the cost of allowable commercial air travel,as provided for in subparagraph]c.,is unallowable. e. Foreign travel.Direct charges for foreign travel costs are allowable only when the travel has received prior approval of the awarding agency.Each separate foreign trip must receive such approval.For purposes of this provision, "foreign travel"includes any travel outside Canada,Mexico,the United States,and any United States territories and possessions.However,the term"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. • http://www.whitehouse.gov/omb/circulars_aI 22_2004/ 7/20/2011 allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /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 (1)Airfare costs in excess of the customary standard commercial airfare(coach or equivalent),Federal • Government contract airfare(where authorized and available),or the lowest commercial discount airfare are unallowable except when such accommodations would:(a)require circuitous routing;(b)require travel during unreasonable hours;(c)excessively prolong travel;(d)result in additional costs that would offset the transportation savings;or(e)offer accommodations not reasonably adequate for the traveler's medical needs.The non-profit organization must justify and document these conditions on a case-by-case basis in order for the use of first-class airfare to be allowable in such cases. (2)Unless a pattern of avoidance is detected,the Federal Government will generally not question a non-profit organization's determinations that customary standard airfare or other discount airfare is unavailable for specific trips if the non-profit organization can demonstrate either of the following:(a)that such airfare was not available in the specific case;or(b)that it is the non-profit organization's overall practice to make routine use of such airfare. d. Air travel by other than commercial carrier.Costs of travel by non-profit organization-owned,-leased.or-chartered aircraft include the cost of lease,charter,operation(including personnel costs),maintenance,depreciation, insurance,and other related costs.The portion of such costs that exceeds the cost of allowable commercial air travel,as provided for in subparagraph]c.,is unallowable. e. Foreign travel.Direct charges for foreign travel costs are allowable only when the travel has received prior approval of the awarding agency.Each separate foreign trip must receive such approval.For purposes of this provision, "foreign travel"includes any travel outside Canada,Mexico,the United States,and any United States territories and possessions.However,the term"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. • http://www.whitehouse.gov/omb/circulars_aI 22_2004/ 7/20/2011 allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /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 -Federal 8 (1)Airfare costs in excess of the customary standard commercial airfare(coach or equivalent),Federal • Government contract airfare(where authorized and available),or the lowest commercial discount airfare are unallowable except when such accommodations would:(a)require circuitous routing;(b)require travel during unreasonable hours;(c)excessively prolong travel;(d)result in additional costs that would offset the transportation savings;or(e)offer accommodations not reasonably adequate for the traveler's medical needs.The non-profit organization must justify and document these conditions on a case-by-case basis in order for the use of first-class airfare to be allowable in such cases. (2)Unless a pattern of avoidance is detected,the Federal Government will generally not question a non-profit organization's determinations that customary standard airfare or other discount airfare is unavailable for specific trips if the non-profit organization can demonstrate either of the following:(a)that such airfare was not available in the specific case;or(b)that it is the non-profit organization's overall practice to make routine use of such airfare. d. Air travel by other than commercial carrier.Costs of travel by non-profit organization-owned,-leased.or-chartered aircraft include the cost of lease,charter,operation(including personnel costs),maintenance,depreciation, insurance,and other related costs.The portion of such costs that exceeds the cost of allowable commercial air travel,as provided for in subparagraph]c.,is unallowable. e. Foreign travel.Direct charges for foreign travel costs are allowable only when the travel has received prior approval of the awarding agency.Each separate foreign trip must receive such approval.For purposes of this provision, "foreign travel"includes any travel outside Canada,Mexico,the United States,and any United States territories and possessions.However,the term"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. • http://www.whitehouse.gov/omb/circulars_aI 22_2004/ 7/20/2011 allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /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. 5 .210 Subrecipient and vendor determinations. (a) General. An auditee may be a recipient, a subrecipient, and a vendor. Federal awards expended as a recipient or a subrecipient would be subject to audit under this part. The payments received for goods or services provided as a vendor would not be considered Federal awards. The guidance in paragraphs (b) and (c) of this section should be considered in determining whether payments constitute a Federal award or a payment for goods and services. (b) Federal award. Characteristics indicative of a Federal award received by a subrecipient are when the organization: (1) Determines who is eligible to receive what Federal financial assistance; (2) Has its performance measured against whether the objectives of the Federal program are met; (3) Has responsibility for programmatic decision making; (4) Has responsibility for adherence to applicable Federal. program compliance requirements; and (5) Uses the Federal funds to carry out a program of the organization as compared to providing goods or services for a program of the pass-through entity. (c) Payment for goods and services. Characteristics indicative of a payment for goods and services received by a vendor are when the organization: (1) Provides the goods and services within normal business operations; 10 were received and expended in prior-years, are not considered Federal awards expended under this part when the laws, regulations, and the provisions of contracts or grant agreements pertaining to such loans impose no continuing compliance requirements other than to repay the loans. (e) Endowment funds. The cumulative balance of Federal awards for endowment funds which are federally restricted are considered awards expended in each year in which the funds are still restricted. (f) Free rent. Free rent received by itself is not considered a Federal award expended under this part. However, free rent received as part 9 -Federal 8 (1)Airfare costs in excess of the customary standard commercial airfare(coach or equivalent),Federal • Government contract airfare(where authorized and available),or the lowest commercial discount airfare are unallowable except when such accommodations would:(a)require circuitous routing;(b)require travel during unreasonable hours;(c)excessively prolong travel;(d)result in additional costs that would offset the transportation savings;or(e)offer accommodations not reasonably adequate for the traveler's medical needs.The non-profit organization must justify and document these conditions on a case-by-case basis in order for the use of first-class airfare to be allowable in such cases. (2)Unless a pattern of avoidance is detected,the Federal Government will generally not question a non-profit organization's determinations that customary standard airfare or other discount airfare is unavailable for specific trips if the non-profit organization can demonstrate either of the following:(a)that such airfare was not available in the specific case;or(b)that it is the non-profit organization's overall practice to make routine use of such airfare. d. Air travel by other than commercial carrier.Costs of travel by non-profit organization-owned,-leased.or-chartered aircraft include the cost of lease,charter,operation(including personnel costs),maintenance,depreciation, insurance,and other related costs.The portion of such costs that exceeds the cost of allowable commercial air travel,as provided for in subparagraph]c.,is unallowable. e. Foreign travel.Direct charges for foreign travel costs are allowable only when the travel has received prior approval of the awarding agency.Each separate foreign trip must receive such approval.For purposes of this provision, "foreign travel"includes any travel outside Canada,Mexico,the United States,and any United States territories and possessions.However,the term"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. • http://www.whitehouse.gov/omb/circulars_aI 22_2004/ 7/20/2011 allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /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 (5) 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 owever, free rent received as part 9 -Federal 8 (1)Airfare costs in excess of the customary standard commercial airfare(coach or equivalent),Federal • Government contract airfare(where authorized and available),or the lowest commercial discount airfare are unallowable except when such accommodations would:(a)require circuitous routing;(b)require travel during unreasonable hours;(c)excessively prolong travel;(d)result in additional costs that would offset the transportation savings;or(e)offer accommodations not reasonably adequate for the traveler's medical needs.The non-profit organization must justify and document these conditions on a case-by-case basis in order for the use of first-class airfare to be allowable in such cases. (2)Unless a pattern of avoidance is detected,the Federal Government will generally not question a non-profit organization's determinations that customary standard airfare or other discount airfare is unavailable for specific trips if the non-profit organization can demonstrate either of the following:(a)that such airfare was not available in the specific case;or(b)that it is the non-profit organization's overall practice to make routine use of such airfare. d. Air travel by other than commercial carrier.Costs of travel by non-profit organization-owned,-leased.or-chartered aircraft include the cost of lease,charter,operation(including personnel costs),maintenance,depreciation, insurance,and other related costs.The portion of such costs that exceeds the cost of allowable commercial air travel,as provided for in subparagraph]c.,is unallowable. e. Foreign travel.Direct charges for foreign travel costs are allowable only when the travel has received prior approval of the awarding agency.Each separate foreign trip must receive such approval.For purposes of this provision, "foreign travel"includes any travel outside Canada,Mexico,the United States,and any United States territories and possessions.However,the term"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. • http://www.whitehouse.gov/omb/circulars_aI 22_2004/ 7/20/2011 allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /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 eral 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 owever, free rent received as part 9 -Federal 8 (1)Airfare costs in excess of the customary standard commercial airfare(coach or equivalent),Federal • Government contract airfare(where authorized and available),or the lowest commercial discount airfare are unallowable except when such accommodations would:(a)require circuitous routing;(b)require travel during unreasonable hours;(c)excessively prolong travel;(d)result in additional costs that would offset the transportation savings;or(e)offer accommodations not reasonably adequate for the traveler's medical needs.The non-profit organization must justify and document these conditions on a case-by-case basis in order for the use of first-class airfare to be allowable in such cases. (2)Unless a pattern of avoidance is detected,the Federal Government will generally not question a non-profit organization's determinations that customary standard airfare or other discount airfare is unavailable for specific trips if the non-profit organization can demonstrate either of the following:(a)that such airfare was not available in the specific case;or(b)that it is the non-profit organization's overall practice to make routine use of such airfare. d. Air travel by other than commercial carrier.Costs of travel by non-profit organization-owned,-leased.or-chartered aircraft include the cost of lease,charter,operation(including personnel costs),maintenance,depreciation, insurance,and other related costs.The portion of such costs that exceeds the cost of allowable commercial air travel,as provided for in subparagraph]c.,is unallowable. e. Foreign travel.Direct charges for foreign travel costs are allowable only when the travel has received prior approval of the awarding agency.Each separate foreign trip must receive such approval.For purposes of this provision, "foreign travel"includes any travel outside Canada,Mexico,the United States,and any United States territories and possessions.However,the term"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. • http://www.whitehouse.gov/omb/circulars_aI 22_2004/ 7/20/2011 allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /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 its. 11 owever, free rent received as part 9 -Federal 8 (1)Airfare costs in excess of the customary standard commercial airfare(coach or equivalent),Federal • Government contract airfare(where authorized and available),or the lowest commercial discount airfare are unallowable except when such accommodations would:(a)require circuitous routing;(b)require travel during unreasonable hours;(c)excessively prolong travel;(d)result in additional costs that would offset the transportation savings;or(e)offer accommodations not reasonably adequate for the traveler's medical needs.The non-profit organization must justify and document these conditions on a case-by-case basis in order for the use of first-class airfare to be allowable in such cases. (2)Unless a pattern of avoidance is detected,the Federal Government will generally not question a non-profit organization's determinations that customary standard airfare or other discount airfare is unavailable for specific trips if the non-profit organization can demonstrate either of the following:(a)that such airfare was not available in the specific case;or(b)that it is the non-profit organization's overall practice to make routine use of such airfare. d. Air travel by other than commercial carrier.Costs of travel by non-profit organization-owned,-leased.or-chartered aircraft include the cost of lease,charter,operation(including personnel costs),maintenance,depreciation, insurance,and other related costs.The portion of such costs that exceeds the cost of allowable commercial air travel,as provided for in subparagraph]c.,is unallowable. e. Foreign travel.Direct charges for foreign travel costs are allowable only when the travel has received prior approval of the awarding agency.Each separate foreign trip must receive such approval.For purposes of this provision, "foreign travel"includes any travel outside Canada,Mexico,the United States,and any United States territories and possessions.However,the term"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. • http://www.whitehouse.gov/omb/circulars_aI 22_2004/ 7/20/2011 allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /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 5 .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 cept when such accommodations would:(a)require circuitous routing;(b)require travel during unreasonable hours;(c)excessively prolong travel;(d)result in additional costs that would offset the transportation savings;or(e)offer accommodations not reasonably adequate for the traveler's medical needs.The non-profit organization must justify and document these conditions on a case-by-case basis in order for the use of first-class airfare to be allowable in such cases. (2)Unless a pattern of avoidance is detected,the Federal Government will generally not question a non-profit organization's determinations that customary standard airfare or other discount airfare is unavailable for specific trips if the non-profit organization can demonstrate either of the following:(a)that such airfare was not available in the specific case;or(b)that it is the non-profit organization's overall practice to make routine use of such airfare. d. Air travel by other than commercial carrier.Costs of travel by non-profit organization-owned,-leased.or-chartered aircraft include the cost of lease,charter,operation(including personnel costs),maintenance,depreciation, insurance,and other related costs.The portion of such costs that exceeds the cost of allowable commercial air travel,as provided for in subparagraph]c.,is unallowable. e. Foreign travel.Direct charges for foreign travel costs are allowable only when the travel has received prior approval of the awarding agency.Each separate foreign trip must receive such approval.For purposes of this provision, "foreign travel"includes any travel outside Canada,Mexico,the United States,and any United States territories and possessions.However,the term"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. • http://www.whitehouse.gov/omb/circulars_aI 22_2004/ 7/20/2011 allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /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 § .315(c) , respectively. § .305 Auditor selection. 15 uide 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 cept when such accommodations would:(a)require circuitous routing;(b)require travel during unreasonable hours;(c)excessively prolong travel;(d)result in additional costs that would offset the transportation savings;or(e)offer accommodations not reasonably adequate for the traveler's medical needs.The non-profit organization must justify and document these conditions on a case-by-case basis in order for the use of first-class airfare to be allowable in such cases. (2)Unless a pattern of avoidance is detected,the Federal Government will generally not question a non-profit organization's determinations that customary standard airfare or other discount airfare is unavailable for specific trips if the non-profit organization can demonstrate either of the following:(a)that such airfare was not available in the specific case;or(b)that it is the non-profit organization's overall practice to make routine use of such airfare. d. Air travel by other than commercial carrier.Costs of travel by non-profit organization-owned,-leased.or-chartered aircraft include the cost of lease,charter,operation(including personnel costs),maintenance,depreciation, insurance,and other related costs.The portion of such costs that exceeds the cost of allowable commercial air travel,as provided for in subparagraph]c.,is unallowable. e. Foreign travel.Direct charges for foreign travel costs are allowable only when the travel has received prior approval of the awarding agency.Each separate foreign trip must receive such approval.For purposes of this provision, "foreign travel"includes any travel outside Canada,Mexico,the United States,and any United States territories and possessions.However,the term"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. • http://www.whitehouse.gov/omb/circulars_aI 22_2004/ 7/20/2011 allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /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 airfare to be allowable in such cases. (2)Unless a pattern of avoidance is detected,the Federal Government will generally not question a non-profit organization's determinations that customary standard airfare or other discount airfare is unavailable for specific trips if the non-profit organization can demonstrate either of the following:(a)that such airfare was not available in the specific case;or(b)that it is the non-profit organization's overall practice to make routine use of such airfare. d. Air travel by other than commercial carrier.Costs of travel by non-profit organization-owned,-leased.or-chartered aircraft include the cost of lease,charter,operation(including personnel costs),maintenance,depreciation, insurance,and other related costs.The portion of such costs that exceeds the cost of allowable commercial air travel,as provided for in subparagraph]c.,is unallowable. e. Foreign travel.Direct charges for foreign travel costs are allowable only when the travel has received prior approval of the awarding agency.Each separate foreign trip must receive such approval.For purposes of this provision, "foreign travel"includes any travel outside Canada,Mexico,the United States,and any United States territories and possessions.However,the term"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. • http://www.whitehouse.gov/omb/circulars_aI 22_2004/ 7/20/2011 allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /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 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 airfare to be allowable in such cases. (2)Unless a pattern of avoidance is detected,the Federal Government will generally not question a non-profit organization's determinations that customary standard airfare or other discount airfare is unavailable for specific trips if the non-profit organization can demonstrate either of the following:(a)that such airfare was not available in the specific case;or(b)that it is the non-profit organization's overall practice to make routine use of such airfare. d. Air travel by other than commercial carrier.Costs of travel by non-profit organization-owned,-leased.or-chartered aircraft include the cost of lease,charter,operation(including personnel costs),maintenance,depreciation, insurance,and other related costs.The portion of such costs that exceeds the cost of allowable commercial air travel,as provided for in subparagraph]c.,is unallowable. e. Foreign travel.Direct charges for foreign travel costs are allowable only when the travel has received prior approval of the awarding agency.Each separate foreign trip must receive such approval.For purposes of this provision, "foreign travel"includes any travel outside Canada,Mexico,the United States,and any United States territories and possessions.However,the term"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. • http://www.whitehouse.gov/omb/circulars_aI 22_2004/ 7/20/2011 allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /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 significant deficiencies in internal control were disclosed by the audit of the financial statements and whether any such conditions were material weaknesses. (iii) A statement as to whether the audit disclosed any noncompliance which is material to the financial statements of the auditee. (iv) Where applicable, a statement that significant deficiencies in internal control over major programs were disclosed by the audit and whether any such conditions were material weaknesses. (v) The type of report the auditor issued on compliance for major 18 dividual 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 airfare to be allowable in such cases. (2)Unless a pattern of avoidance is detected,the Federal Government will generally not question a non-profit organization's determinations that customary standard airfare or other discount airfare is unavailable for specific trips if the non-profit organization can demonstrate either of the following:(a)that such airfare was not available in the specific case;or(b)that it is the non-profit organization's overall practice to make routine use of such airfare. d. Air travel by other than commercial carrier.Costs of travel by non-profit organization-owned,-leased.or-chartered aircraft include the cost of lease,charter,operation(including personnel costs),maintenance,depreciation, insurance,and other related costs.The portion of such costs that exceeds the cost of allowable commercial air travel,as provided for in subparagraph]c.,is unallowable. e. Foreign travel.Direct charges for foreign travel costs are allowable only when the travel has received prior approval of the awarding agency.Each separate foreign trip must receive such approval.For purposes of this provision, "foreign travel"includes any travel outside Canada,Mexico,the United States,and any United States territories and possessions.However,the term"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. • http://www.whitehouse.gov/omb/circulars_aI 22_2004/ 7/20/2011 allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /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 of opinion) . (ii) Where applicable, a statement that significant deficiencies in internal control were disclosed by the audit of the financial statements and whether any such conditions were material weaknesses. (iii) A statement as to whether the audit disclosed any noncompliance which is material to the financial statements of the auditee. (iv) Where applicable, a statement that significant deficiencies in internal control over major programs were disclosed by the audit and whether any such conditions were material weaknesses. (v) The type of report the auditor issued on compliance for major 18 dividual 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 airfare to be allowable in such cases. (2)Unless a pattern of avoidance is detected,the Federal Government will generally not question a non-profit organization's determinations that customary standard airfare or other discount airfare is unavailable for specific trips if the non-profit organization can demonstrate either of the following:(a)that such airfare was not available in the specific case;or(b)that it is the non-profit organization's overall practice to make routine use of such airfare. d. Air travel by other than commercial carrier.Costs of travel by non-profit organization-owned,-leased.or-chartered aircraft include the cost of lease,charter,operation(including personnel costs),maintenance,depreciation, insurance,and other related costs.The portion of such costs that exceeds the cost of allowable commercial air travel,as provided for in subparagraph]c.,is unallowable. e. Foreign travel.Direct charges for foreign travel costs are allowable only when the travel has received prior approval of the awarding agency.Each separate foreign trip must receive such approval.For purposes of this provision, "foreign travel"includes any travel outside Canada,Mexico,the United States,and any United States territories and possessions.However,the term"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. • http://www.whitehouse.gov/omb/circulars_aI 22_2004/ 7/20/2011 allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /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 § .505; and (4) Corrective action plan discussed in § .315(c) . (d) Submission to clearinghouse. All auditees shall submit to the Federal clearinghouse designated by OMB a single copy of the data collection form described in paragraph (b) of this section and the reporting package described in paragraph (c) of this section. (e) Additional submission by subrecipients . (1) In addition to the requirements discussed in paragraph (d) of this section, auditees that are also subrecipients shall submit to each pass-through entity one copy of the 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 r any such conditions were material weaknesses. (iii) A statement as to whether the audit disclosed any noncompliance which is material to the financial statements of the auditee. (iv) Where applicable, a statement that significant deficiencies in internal control over major programs were disclosed by the audit and whether any such conditions were material weaknesses. (v) The type of report the auditor issued on compliance for major 18 dividual 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 airfare to be allowable in such cases. (2)Unless a pattern of avoidance is detected,the Federal Government will generally not question a non-profit organization's determinations that customary standard airfare or other discount airfare is unavailable for specific trips if the non-profit organization can demonstrate either of the following:(a)that such airfare was not available in the specific case;or(b)that it is the non-profit organization's overall practice to make routine use of such airfare. d. Air travel by other than commercial carrier.Costs of travel by non-profit organization-owned,-leased.or-chartered aircraft include the cost of lease,charter,operation(including personnel costs),maintenance,depreciation, insurance,and other related costs.The portion of such costs that exceeds the cost of allowable commercial air travel,as provided for in subparagraph]c.,is unallowable. e. Foreign travel.Direct charges for foreign travel costs are allowable only when the travel has received prior approval of the awarding agency.Each separate foreign trip must receive such approval.For purposes of this provision, "foreign travel"includes any travel outside Canada,Mexico,the United States,and any United States territories and possessions.However,the term"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. • http://www.whitehouse.gov/omb/circulars_aI 22_2004/ 7/20/2011 allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /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 er 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 airfare to be allowable in such cases. (2)Unless a pattern of avoidance is detected,the Federal Government will generally not question a non-profit organization's determinations that customary standard airfare or other discount airfare is unavailable for specific trips if the non-profit organization can demonstrate either of the following:(a)that such airfare was not available in the specific case;or(b)that it is the non-profit organization's overall practice to make routine use of such airfare. d. Air travel by other than commercial carrier.Costs of travel by non-profit organization-owned,-leased.or-chartered aircraft include the cost of lease,charter,operation(including personnel costs),maintenance,depreciation, insurance,and other related costs.The portion of such costs that exceeds the cost of allowable commercial air travel,as provided for in subparagraph]c.,is unallowable. e. Foreign travel.Direct charges for foreign travel costs are allowable only when the travel has received prior approval of the awarding agency.Each separate foreign trip must receive such approval.For purposes of this provision, "foreign travel"includes any travel outside Canada,Mexico,the United States,and any United States territories and possessions.However,the term"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. • http://www.whitehouse.gov/omb/circulars_aI 22_2004/ 7/20/2011 allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /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 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 er 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 airfare to be allowable in such cases. (2)Unless a pattern of avoidance is detected,the Federal Government will generally not question a non-profit organization's determinations that customary standard airfare or other discount airfare is unavailable for specific trips if the non-profit organization can demonstrate either of the following:(a)that such airfare was not available in the specific case;or(b)that it is the non-profit organization's overall practice to make routine use of such airfare. d. Air travel by other than commercial carrier.Costs of travel by non-profit organization-owned,-leased.or-chartered aircraft include the cost of lease,charter,operation(including personnel costs),maintenance,depreciation, insurance,and other related costs.The portion of such costs that exceeds the cost of allowable commercial air travel,as provided for in subparagraph]c.,is unallowable. e. Foreign travel.Direct charges for foreign travel costs are allowable only when the travel has received prior approval of the awarding agency.Each separate foreign trip must receive such approval.For purposes of this provision, "foreign travel"includes any travel outside Canada,Mexico,the United States,and any United States territories and possessions.However,the term"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. • http://www.whitehouse.gov/omb/circulars_aI 22_2004/ 7/20/2011 allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /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. 23 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 er 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 airfare to be allowable in such cases. (2)Unless a pattern of avoidance is detected,the Federal Government will generally not question a non-profit organization's determinations that customary standard airfare or other discount airfare is unavailable for specific trips if the non-profit organization can demonstrate either of the following:(a)that such airfare was not available in the specific case;or(b)that it is the non-profit organization's overall practice to make routine use of such airfare. d. Air travel by other than commercial carrier.Costs of travel by non-profit organization-owned,-leased.or-chartered aircraft include the cost of lease,charter,operation(including personnel costs),maintenance,depreciation, insurance,and other related costs.The portion of such costs that exceeds the cost of allowable commercial air travel,as provided for in subparagraph]c.,is unallowable. e. Foreign travel.Direct charges for foreign travel costs are allowable only when the travel has received prior approval of the awarding agency.Each separate foreign trip must receive such approval.For purposes of this provision, "foreign travel"includes any travel outside Canada,Mexico,the United States,and any United States territories and possessions.However,the term"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. • http://www.whitehouse.gov/omb/circulars_aI 22_2004/ 7/20/2011 allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /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 § .400(d) (5) , the pass- through entity shall be responsible for making the management decision for audit findings that relate to Federal awards it makes to subrecipients. (d) Time requirements. The entity responsible for making the management decision shall do so within six months of receipt of the audit report. Corrective action should be initiated within six months after receipt of the audit report and proceed as rapidly as possible. (e) Reference numbers . Management decisions shall include the reference numbers the auditor assigned to each audit finding in accordance with § .510(c) . Subpart E--Auditors §_.500 Scope of audit. (a) General. The audit shall be conducted in accordance with GAGAS. The audit shall cover the entire operations of the auditee; or, at the option of the auditee, such audit shall include a series of audits that cover departments, agencies, and other organizational units which expended or otherwise administered Federal awards during such fiscal year, provided that each such audit shall encompass the financial statements and schedule of expenditures of Federal awards for each such department, agency, and other organizational unit, which shall be considered to be a non-Federal entity. The financial statements and schedule of expenditures of Federal awards shall be for the same fiscal year. (b) Financial statements. The auditor shall determine whether the financial statements of the auditee are presented fairly in all material respects in conformity with generally accepted accounting principles. The auditor shall also determine whether the schedule of expenditures of Federal awards is presented fairly in all material respects in relation to the auditee's financial statements taken as a whole. (c) Internal control . (1) In addition to the requirements of GAGAS, the auditor shall perform procedures to obtain an understanding of internal control over Federal programs sufficient to plan the audit to support a low assessed level of control risk for major programs. (2) Except as provided in paragraph (c) (3) of this section, the auditor shall: (i) Plan the testing of internal control over major programs to support a low assessed level of control risk for the assertions relevant to the compliance requirements for each major program; and (ii) Perform testing of internal control as planned in paragraph (c) (2) (i) of this section. • (3) When internal control over some or all of the compliance requirements for a major program are likely to be ineffective in preventing or detecting noncompliance, the planning and performing of testing described in paragraph (c) (2) of this section are not required for those compliance requirements. However, the auditor shall report a significant deficiency (including whether any such condition is a material weakness) in accordance with § .510, assess the related control risk at the maximum, and consider whether additional compliance tests are required because of ineffective 24 it advice and liaison to auditees and auditors. (2) Consider auditee requests for extensions to the report 21 er 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 airfare to be allowable in such cases. (2)Unless a pattern of avoidance is detected,the Federal Government will generally not question a non-profit organization's determinations that customary standard airfare or other discount airfare is unavailable for specific trips if the non-profit organization can demonstrate either of the following:(a)that such airfare was not available in the specific case;or(b)that it is the non-profit organization's overall practice to make routine use of such airfare. d. Air travel by other than commercial carrier.Costs of travel by non-profit organization-owned,-leased.or-chartered aircraft include the cost of lease,charter,operation(including personnel costs),maintenance,depreciation, insurance,and other related costs.The portion of such costs that exceeds the cost of allowable commercial air travel,as provided for in subparagraph]c.,is unallowable. e. Foreign travel.Direct charges for foreign travel costs are allowable only when the travel has received prior approval of the awarding agency.Each separate foreign trip must receive such approval.For purposes of this provision, "foreign travel"includes any travel outside Canada,Mexico,the United States,and any United States territories and possessions.However,the term"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. • http://www.whitehouse.gov/omb/circulars_aI 22_2004/ 7/20/2011 allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /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 auditors. (2) Consider auditee requests for extensions to the report 21 er 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 airfare to be allowable in such cases. (2)Unless a pattern of avoidance is detected,the Federal Government will generally not question a non-profit organization's determinations that customary standard airfare or other discount airfare is unavailable for specific trips if the non-profit organization can demonstrate either of the following:(a)that such airfare was not available in the specific case;or(b)that it is the non-profit organization's overall practice to make routine use of such airfare. d. Air travel by other than commercial carrier.Costs of travel by non-profit organization-owned,-leased.or-chartered aircraft include the cost of lease,charter,operation(including personnel costs),maintenance,depreciation, insurance,and other related costs.The portion of such costs that exceeds the cost of allowable commercial air travel,as provided for in subparagraph]c.,is unallowable. e. Foreign travel.Direct charges for foreign travel costs are allowable only when the travel has received prior approval of the awarding agency.Each separate foreign trip must receive such approval.For purposes of this provision, "foreign travel"includes any travel outside Canada,Mexico,the United States,and any United States territories and possessions.However,the term"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. • http://www.whitehouse.gov/omb/circulars_aI 22_2004/ 7/20/2011 allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /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 significant deficiencies in internal control were disclosed by the audit of the financial statements and whether any such conditions were material weaknesses; (iii) A statement as to whether the audit disclosed any noncompliance which is material to the financial statements of the auditee; (iv) Where applicable, a statement that significant deficiencies in internal control over major programs were disclosed by the audit and whether any such conditions were material weaknesses; (v) The type of report the auditor issued on compliance for major programs (i.e. , unqualified opinion, qualified opinion, adverse opinion, or disclaimer of opinion) ; (vi) A statement as to whether the audit disclosed any audit findings which the auditor is required to report under §_.510(a) ; (vii) An identification of major programs; (viii)The dollar threshold used to distinguish between Type A and Type B programs, as described in § .520(b) ; and (ix) A statement as to whether the auditee qualified as a low-risk auditee under § .530. (2) Findings relating to the financial statements which are required to be reported in accordance with GAGAS. (3) Findings and questioned costs for Federal awards which shall include audit findings as defined in §_.510(a) . (i) Audit findings (e.g. , internal control findings, compliance findings, questioned costs, or fraud) which relate to the same issue should be presented as a single audit finding. Where practical, audit findings should be organized by Federal agency or pass-through entity. (ii) Audit findings which relate to both the financial statements and Federal awards, as reported under paragraphs (d) (2) and (d) (3) of this section, respectively, should be reported in both sections of the schedule. However, the reporting in one section of the schedule may be in summary form with a reference to a detailed reporting in the other section of the schedule. § .510 Audit findings. 26 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 auditors. (2) Consider auditee requests for extensions to the report 21 er 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 airfare to be allowable in such cases. (2)Unless a pattern of avoidance is detected,the Federal Government will generally not question a non-profit organization's determinations that customary standard airfare or other discount airfare is unavailable for specific trips if the non-profit organization can demonstrate either of the following:(a)that such airfare was not available in the specific case;or(b)that it is the non-profit organization's overall practice to make routine use of such airfare. d. Air travel by other than commercial carrier.Costs of travel by non-profit organization-owned,-leased.or-chartered aircraft include the cost of lease,charter,operation(including personnel costs),maintenance,depreciation, insurance,and other related costs.The portion of such costs that exceeds the cost of allowable commercial air travel,as provided for in subparagraph]c.,is unallowable. e. Foreign travel.Direct charges for foreign travel costs are allowable only when the travel has received prior approval of the awarding agency.Each separate foreign trip must receive such approval.For purposes of this provision, "foreign travel"includes any travel outside Canada,Mexico,the United States,and any United States territories and possessions.However,the term"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. • http://www.whitehouse.gov/omb/circulars_aI 22_2004/ 7/20/2011 allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /2011 (a) Audit findings reported. The auditor shall report the following as audit findings in a schedule of findings and questioned costs: (1) Significant deficiencies in internal control over major programs. The auditor's determination of whether a deficiency in internal control is a significant deficieicny for the purpose of reporting an audit finding is in relation to a type of compliance requirement for a major program or an audit objective identified in the compliance supplement. The auditor • shall identify significant deficiencies which are individually or cumulatively material weaknesses. (2) Material noncompliance with the provisions of laws, regulations, contracts, or grant agreements related to a major program. The auditor's determination of whether a noncompliance with the provisions of laws, regulations, contracts, or grant agreements is material for the purpose of reporting an audit finding is in relation to a type of compliance requirement for a major program or an audit objective identified in the compliance supplement. (3) Known questioned costs which are greater than $10, 000 for a type of compliance requirement for a major program. Known questioned costs are those specifically identified by the auditor. In evaluating the effect of questioned costs on the opinion on compliance, the auditor considers the best estimate of total costs questioned (likely questioned costs) , not just the questioned costs specifically identified (known questioned costs) . The auditor shall also report known questioned costs when likely questioned costs are greater than $10, 000 for a type of compliance requirement for a major program. In reporting questioned costs, the auditor shall include information to provide proper perspective for judging the prevalence and consequences of the questioned costs. (4) Known questioned costs which are greater than $10, 000 for a Federal program which is not audited as a major program. Except for audit follow-up, the auditor is not required under this part to perform audit procedures for such a Federal program; therefore, the auditor will normally not find questioned costs for a program which is not audited as a major program. However, if the auditor does become aware of questioned costs for a Federal program which is not audited as a major program (e.g. , as part of audit follow-up or other audit procedures) and the known questioned costs are greater than $10, 000, then the auditor shall report this as an audit finding. (5) The circumstances concerning why the auditor's report on compliance for major programs is other than an unqualified opinion, unless such circumstances are otherwise reported as audit findings in the schedule of findings and questioned costs for Federal awards. (6) Known fraud affecting a Federal award, unless such fraud is otherwise reported as an audit finding in the schedule of findings and questioned costs for Federal awards. This paragraph does not require the auditor to make an additional reporting when the auditor confirms that the fraud was reported outside of the auditor's reports under the direct reporting requirements of GAGAS. (7) Instances where the results of audit follow-up procedures disclosed that the summary schedule of prior audit findings prepared by the auditee in accordance with § .315(b) materially misrepresents the status of any prior audit finding. (b) Audit finding detail . Audit .findings shall be presented in sufficient detail for the auditee to prepare a corrective action plan and take corrective action and for Federal agencies and pass-through entities to arrive at a management decision. The following specific information shall be 27 of Health is a major subdivision in the Department of Health and Human Services. 16 airfare to be allowable in such cases. (2)Unless a pattern of avoidance is detected,the Federal Government will generally not question a non-profit organization's determinations that customary standard airfare or other discount airfare is unavailable for specific trips if the non-profit organization can demonstrate either of the following:(a)that such airfare was not available in the specific case;or(b)that it is the non-profit organization's overall practice to make routine use of such airfare. d. Air travel by other than commercial carrier.Costs of travel by non-profit organization-owned,-leased.or-chartered aircraft include the cost of lease,charter,operation(including personnel costs),maintenance,depreciation, insurance,and other related costs.The portion of such costs that exceeds the cost of allowable commercial air travel,as provided for in subparagraph]c.,is unallowable. e. Foreign travel.Direct charges for foreign travel costs are allowable only when the travel has received prior approval of the awarding agency.Each separate foreign trip must receive such approval.For purposes of this provision, "foreign travel"includes any travel outside Canada,Mexico,the United States,and any United States territories and possessions.However,the term"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. • http://www.whitehouse.gov/omb/circulars_aI 22_2004/ 7/20/2011 allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /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 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 of Health is a major subdivision in the Department of Health and Human Services. 16 airfare to be allowable in such cases. (2)Unless a pattern of avoidance is detected,the Federal Government will generally not question a non-profit organization's determinations that customary standard airfare or other discount airfare is unavailable for specific trips if the non-profit organization can demonstrate either of the following:(a)that such airfare was not available in the specific case;or(b)that it is the non-profit organization's overall practice to make routine use of such airfare. d. Air travel by other than commercial carrier.Costs of travel by non-profit organization-owned,-leased.or-chartered aircraft include the cost of lease,charter,operation(including personnel costs),maintenance,depreciation, insurance,and other related costs.The portion of such costs that exceeds the cost of allowable commercial air travel,as provided for in subparagraph]c.,is unallowable. e. Foreign travel.Direct charges for foreign travel costs are allowable only when the travel has received prior approval of the awarding agency.Each separate foreign trip must receive such approval.For purposes of this provision, "foreign travel"includes any travel outside Canada,Mexico,the United States,and any United States territories and possessions.However,the term"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. • http://www.whitehouse.gov/omb/circulars_aI 22_2004/ 7/20/2011 allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /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 action and for Federal agencies and pass-through entities to arrive at a management decision. The following specific information shall be 27 of Health is a major subdivision in the Department of Health and Human Services. 16 airfare to be allowable in such cases. (2)Unless a pattern of avoidance is detected,the Federal Government will generally not question a non-profit organization's determinations that customary standard airfare or other discount airfare is unavailable for specific trips if the non-profit organization can demonstrate either of the following:(a)that such airfare was not available in the specific case;or(b)that it is the non-profit organization's overall practice to make routine use of such airfare. d. Air travel by other than commercial carrier.Costs of travel by non-profit organization-owned,-leased.or-chartered aircraft include the cost of lease,charter,operation(including personnel costs),maintenance,depreciation, insurance,and other related costs.The portion of such costs that exceeds the cost of allowable commercial air travel,as provided for in subparagraph]c.,is unallowable. e. Foreign travel.Direct charges for foreign travel costs are allowable only when the travel has received prior approval of the awarding agency.Each separate foreign trip must receive such approval.For purposes of this provision, "foreign travel"includes any travel outside Canada,Mexico,the United States,and any United States territories and possessions.However,the term"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. • http://www.whitehouse.gov/omb/circulars_aI 22_2004/ 7/20/2011 allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /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 significant deficiencies in internal control or compliance problems as discussed in § .525(b) (1) , § .525(b) (2) , and § .525(c) (1) , a single criteria in §_.525 would seldom cause a Type B program to be considered high-risk. (2) The auditor is not expected to perform risk assessments on relatively small Federal programs. Therefore, the auditor is only required to perform risk assessments on Type B programs that exceed the larger of: (i) $100, 000 or three-tenths of one percent ( .003) of total Federal awards expended when the auditee has less than or equal to $100 million in total Federal awards expended. (ii) $300,000 or three-hundredths of one percent (.0003) of total Federal awards expended when the auditee has more than $100 million in total Federal awards expended. (e) Step 4. At a minimum, the auditor shall audit all of the following as major programs: (1) All Type A programs, except the auditor may exclude any Type A programs identified as low-risk under Step 2 (paragraph (c) (1) of this section) . (2) (i) High-risk Type B programs as identified under either of the following two options: (A) Option 1. At least one half of the Type B programs identified as high-risk under Step 3 (paragraph (d) of this section) , except this paragraph (e) (2) (i) (A) does not require the auditor to audit more high-risk Type B programs than the number of low-risk Type A programs identified as low-risk under Step 2. (B) Option 2. One high-risk Type B program for each Type A program identified as low-risk under Step 2. (ii) When identifying which high-risk Type B programs to audit as major under either Option 1 or 2 in paragraph (e) (2) (i) (A) or (B) , the auditor is encouraged to use an approach which provides an opportunity for different high-risk Type B programs to be audited as major over a period of time. (3) Such additional programs as may be necessary to comply with the percentage of coverage rule discussed in paragraph (f) of this section. This paragraph (e) (3) may require the auditor to audit more programs as major than the number of Type A programs. rule. The auditor shall audit as (f) Percentage of coveragemajor programs Federal programs with Federal awards expended that, in the aggregate, encompass at least 50 percent of total Federal awards expended. If the auditee meets the criteria in § .530 for a low-risk auditee, the auditor need only audit as major programs Federal programs with Federal awards expended that, in the aggregate, encompass at least 25 percent of total Federal awards expended. (g) Documentation of risk. The auditor shall document in the working 30 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 action and for Federal agencies and pass-through entities to arrive at a management decision. The following specific information shall be 27 of Health is a major subdivision in the Department of Health and Human Services. 16 airfare to be allowable in such cases. (2)Unless a pattern of avoidance is detected,the Federal Government will generally not question a non-profit organization's determinations that customary standard airfare or other discount airfare is unavailable for specific trips if the non-profit organization can demonstrate either of the following:(a)that such airfare was not available in the specific case;or(b)that it is the non-profit organization's overall practice to make routine use of such airfare. d. Air travel by other than commercial carrier.Costs of travel by non-profit organization-owned,-leased.or-chartered aircraft include the cost of lease,charter,operation(including personnel costs),maintenance,depreciation, insurance,and other related costs.The portion of such costs that exceeds the cost of allowable commercial air travel,as provided for in subparagraph]c.,is unallowable. e. Foreign travel.Direct charges for foreign travel costs are allowable only when the travel has received prior approval of the awarding agency.Each separate foreign trip must receive such approval.For purposes of this provision, "foreign travel"includes any travel outside Canada,Mexico,the United States,and any United States territories and possessions.However,the term"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. • http://www.whitehouse.gov/omb/circulars_aI 22_2004/ 7/20/2011 allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /2011 • • papers the risk analysis process used in determining major programs. (h) Auditor's iudgment. When the major program determination was performed and documented in accordance with this part, the auditor's judgment in applying the risk-based approach to determine major programs shall be presumed correct. Challenges by Federal agencies and pass-through entities shall only be for clearly improper use of the guidance in this part. However, Federal agencies and pass-through entities may provide auditors guidance about the risk of a particular Federal program and the auditor shall consider this guidance in determining major programs in audits not yet completed. (i) Deviation from use of risk criteria. For first-year audits, the auditor may elect to determine major programs as all Type A programs plus any Type B programs as necessary to meet the percentage of coverage rule discussed in paragraph (f) of this section. Under this option, the auditor would not be required to perform the procedures discussed in paragraphs (c) , (d) , and (e) of this section. (1) A first-year audit is the first year the entity is audited under this part or the first year of a change of auditors. (2) To ensure that a frequent change of auditors would not preclude audit of high-risk Type B programs, this election for first-year audits may not be used by an auditee more than once in every three years. § .525 Criteria for Federal program risk. (a) General. The auditor's determination should be based on an overall evaluation of the risk of noncompliance occurring which could be material to the Federal program. The auditor shall use auditor judgment and consider criteria, such as described in paragraphs (b) , (c) , and (d) of this section, to identify risk in Federal programs. Also, as part of the risk analysis, the auditor may wish to discuss a particular Federal program with auditee management and the Federal agency or pass-through entity. (b) Current and prior audit experience . (1) Weaknesses in internal control over Federal programs would indicate higher risk. Consideration should be given to the control environment over Federal programs and such factors as the expectation of management's adherence to applicable laws and regulations and the provisions of contracts and grant agreements and the competence and experience of personnel who administer the Federal programs. (i) A Federal program administered under multiple internal control structures may have higher risk. When assessing risk in a large single audit, the auditor shall consider whether weaknesses are isolated in a single operating unit (e.g. , one college campus) or pervasive throughout the entity. (ii) When significant parts of a Federal program are passed through to subrecipients, a weak system for monitoring subrecipients would indicate higher risk. (iii) The extent to which computer processing is used to administer Federal programs, as well as the complexity of that processing, should be considered by the auditor in assessing risk. New and recently modified computer systems may also indicate risk. (2) Prior audit findings would indicate higher risk, particularly when the situations identified in the audit findings could have a significant impact on a Federal program or have not been corrected. • (3) Federal programs not recently audited as major programs 31 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 action and for Federal agencies and pass-through entities to arrive at a management decision. The following specific information shall be 27 of Health is a major subdivision in the Department of Health and Human Services. 16 airfare to be allowable in such cases. (2)Unless a pattern of avoidance is detected,the Federal Government will generally not question a non-profit organization's determinations that customary standard airfare or other discount airfare is unavailable for specific trips if the non-profit organization can demonstrate either of the following:(a)that such airfare was not available in the specific case;or(b)that it is the non-profit organization's overall practice to make routine use of such airfare. d. Air travel by other than commercial carrier.Costs of travel by non-profit organization-owned,-leased.or-chartered aircraft include the cost of lease,charter,operation(including personnel costs),maintenance,depreciation, insurance,and other related costs.The portion of such costs that exceeds the cost of allowable commercial air travel,as provided for in subparagraph]c.,is unallowable. e. Foreign travel.Direct charges for foreign travel costs are allowable only when the travel has received prior approval of the awarding agency.Each separate foreign trip must receive such approval.For purposes of this provision, "foreign travel"includes any travel outside Canada,Mexico,the United States,and any United States territories and possessions.However,the term"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. • http://www.whitehouse.gov/omb/circulars_aI 22_2004/ 7/20/2011 allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /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 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 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 action and for Federal agencies and pass-through entities to arrive at a management decision. The following specific information shall be 27 of Health is a major subdivision in the Department of Health and Human Services. 16 airfare to be allowable in such cases. (2)Unless a pattern of avoidance is detected,the Federal Government will generally not question a non-profit organization's determinations that customary standard airfare or other discount airfare is unavailable for specific trips if the non-profit organization can demonstrate either of the following:(a)that such airfare was not available in the specific case;or(b)that it is the non-profit organization's overall practice to make routine use of such airfare. d. Air travel by other than commercial carrier.Costs of travel by non-profit organization-owned,-leased.or-chartered aircraft include the cost of lease,charter,operation(including personnel costs),maintenance,depreciation, insurance,and other related costs.The portion of such costs that exceeds the cost of allowable commercial air travel,as provided for in subparagraph]c.,is unallowable. e. Foreign travel.Direct charges for foreign travel costs are allowable only when the travel has received prior approval of the awarding agency.Each separate foreign trip must receive such approval.For purposes of this provision, "foreign travel"includes any travel outside Canada,Mexico,the United States,and any United States territories and possessions.However,the term"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. • http://www.whitehouse.gov/omb/circulars_aI 22_2004/ 7/20/2011 allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /2011 d (d) None of the Federal programs had audit findings from any of the I 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 lity 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 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 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 action and for Federal agencies and pass-through entities to arrive at a management decision. The following specific information shall be 27 of Health is a major subdivision in the Department of Health and Human Services. 16 airfare to be allowable in such cases. (2)Unless a pattern of avoidance is detected,the Federal Government will generally not question a non-profit organization's determinations that customary standard airfare or other discount airfare is unavailable for specific trips if the non-profit organization can demonstrate either of the following:(a)that such airfare was not available in the specific case;or(b)that it is the non-profit organization's overall practice to make routine use of such airfare. d. Air travel by other than commercial carrier.Costs of travel by non-profit organization-owned,-leased.or-chartered aircraft include the cost of lease,charter,operation(including personnel costs),maintenance,depreciation, insurance,and other related costs.The portion of such costs that exceeds the cost of allowable commercial air travel,as provided for in subparagraph]c.,is unallowable. e. Foreign travel.Direct charges for foreign travel costs are allowable only when the travel has received prior approval of the awarding agency.Each separate foreign trip must receive such approval.For purposes of this provision, "foreign travel"includes any travel outside Canada,Mexico,the United States,and any United States territories and possessions.However,the term"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. • http://www.whitehouse.gov/omb/circulars_aI 22_2004/ 7/20/2011 allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /2011 CITY OF OMAHA PLANNING DEPARTMENT-HOUSING AND COMMUNITY DEVELOPMENT OCCUPANCY REPORT Project Name Borrower/Head of Household Name DOB SSN Co-Borrower Name DOB SSN Address City Funds Requested $ Fund Source: HOME ❑ CDBG ❑ NAHTF❑ OTHER❑ Head of Household is: Male El Female ❑ Elderly ❑ Number of Occupants: Total No. Adults No. Children Under 18 Please enter ethnicity and race for each household member in accordance with the attached definitions. Ethnicity—Choose either H or NH. Enter H for Hispanic or Latino. Enter NH for Not Hispanic or Latino Race Categories—Choose all that apply for each household member. Enter one or more of the following abbreviations: W,B,A,AI, PI, O. White(W) Black or African American(B) Asian(A) American Indian or Alaska Native(AI) Native Hawaiian or Other Pacific Islander(PI) Other(0)(Please specify) HOUSEHOLD MEMBERS AND DEMOGRAPHICS (See Above) Ethnicity Name of Household Member Relationship to Borrower Age (H or NH) Race Handicap Borrower/Head of Household ***** Co-Borrower Notes: I certify that the above information is accurate. Borrower Date Co Borrower Date Authorized Agency Representative Date Page 1 of 2 Revised 6-1-06 IL 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 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 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 action and for Federal agencies and pass-through entities to arrive at a management decision. The following specific information shall be 27 of Health is a major subdivision in the Department of Health and Human Services. 16 airfare to be allowable in such cases. (2)Unless a pattern of avoidance is detected,the Federal Government will generally not question a non-profit organization's determinations that customary standard airfare or other discount airfare is unavailable for specific trips if the non-profit organization can demonstrate either of the following:(a)that such airfare was not available in the specific case;or(b)that it is the non-profit organization's overall practice to make routine use of such airfare. d. Air travel by other than commercial carrier.Costs of travel by non-profit organization-owned,-leased.or-chartered aircraft include the cost of lease,charter,operation(including personnel costs),maintenance,depreciation, insurance,and other related costs.The portion of such costs that exceeds the cost of allowable commercial air travel,as provided for in subparagraph]c.,is unallowable. e. Foreign travel.Direct charges for foreign travel costs are allowable only when the travel has received prior approval of the awarding agency.Each separate foreign trip must receive such approval.For purposes of this provision, "foreign travel"includes any travel outside Canada,Mexico,the United States,and any United States territories and possessions.However,the term"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. • http://www.whitehouse.gov/omb/circulars_aI 22_2004/ 7/20/2011 allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /2011 DEFINITIONS: Ethnicity: 1. 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". 2. 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. Race: 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. • • Page 2 of 2 Revised 6-1-06 ample, 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 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 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 action and for Federal agencies and pass-through entities to arrive at a management decision. The following specific information shall be 27 of Health is a major subdivision in the Department of Health and Human Services. 16 airfare to be allowable in such cases. (2)Unless a pattern of avoidance is detected,the Federal Government will generally not question a non-profit organization's determinations that customary standard airfare or other discount airfare is unavailable for specific trips if the non-profit organization can demonstrate either of the following:(a)that such airfare was not available in the specific case;or(b)that it is the non-profit organization's overall practice to make routine use of such airfare. d. Air travel by other than commercial carrier.Costs of travel by non-profit organization-owned,-leased.or-chartered aircraft include the cost of lease,charter,operation(including personnel costs),maintenance,depreciation, insurance,and other related costs.The portion of such costs that exceeds the cost of allowable commercial air travel,as provided for in subparagraph]c.,is unallowable. e. Foreign travel.Direct charges for foreign travel costs are allowable only when the travel has received prior approval of the awarding agency.Each separate foreign trip must receive such approval.For purposes of this provision, "foreign travel"includes any travel outside Canada,Mexico,the United States,and any United States territories and possessions.However,the term"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. • http://www.whitehouse.gov/omb/circulars_aI 22_2004/ 7/20/2011 allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /2011 AFFIDAVIT EXHIBIT Applicant— Income State of Nebraska ) ) § County of Douglas ) TO: Whom It May Concern: I, Affiant/s herein, being first duly sworn on oath, state and certify that I have reported all of my income to the City of Omaha in accordance with the following Definition of Income: 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 inve§tment 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. O • EQUAL HOUSING OPPORTUNITY Revised and approved 11/4/2009 erage 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 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 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 action and for Federal agencies and pass-through entities to arrive at a management decision. The following specific information shall be 27 of Health is a major subdivision in the Department of Health and Human Services. 16 airfare to be allowable in such cases. (2)Unless a pattern of avoidance is detected,the Federal Government will generally not question a non-profit organization's determinations that customary standard airfare or other discount airfare is unavailable for specific trips if the non-profit organization can demonstrate either of the following:(a)that such airfare was not available in the specific case;or(b)that it is the non-profit organization's overall practice to make routine use of such airfare. d. Air travel by other than commercial carrier.Costs of travel by non-profit organization-owned,-leased.or-chartered aircraft include the cost of lease,charter,operation(including personnel costs),maintenance,depreciation, insurance,and other related costs.The portion of such costs that exceeds the cost of allowable commercial air travel,as provided for in subparagraph]c.,is unallowable. e. Foreign travel.Direct charges for foreign travel costs are allowable only when the travel has received prior approval of the awarding agency.Each separate foreign trip must receive such approval.For purposes of this provision, "foreign travel"includes any travel outside Canada,Mexico,the United States,and any United States territories and possessions.However,the term"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. • http://www.whitehouse.gov/omb/circulars_aI 22_2004/ 7/20/2011 allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /2011 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). I further certify that I am aware of the following: PENALTY FOR FALSE OR FRAUDULENT STATEMENT, U.S.C. Title 18, Section 1001, provides: "Whoever, in any matter within jurisdiction of any department or agency of the United States knowingly and willfully falsifies...or makes false, fictitious or fraudulent statements or representations...(or makes or uses any false writing or document knowing the same to contain any false, fictitious, or fraudulent statement or entry,) shall be fined not more than $10,000.00 or imprisoned not more than five(5)years, or both". Signature Signature On this day of , , before me, the undersigned, a Notary Public duly commissioned and qualified in and for said county, personally came , to me known to be the person(s) named in and who executed the foregoing instrument, and acknowledged that he executed the same as his voluntary act and deed for the purposes therein stated. Witness my hand and notarial seal the day and year last above written. Notary Public My Commission expires A OPPORTUNITY Revised and approved 11 5 2009 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. O • EQUAL HOUSING OPPORTUNITY Revised and approved 11/4/2009 erage 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 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 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 action and for Federal agencies and pass-through entities to arrive at a management decision. The following specific information shall be 27 of Health is a major subdivision in the Department of Health and Human Services. 16 airfare to be allowable in such cases. (2)Unless a pattern of avoidance is detected,the Federal Government will generally not question a non-profit organization's determinations that customary standard airfare or other discount airfare is unavailable for specific trips if the non-profit organization can demonstrate either of the following:(a)that such airfare was not available in the specific case;or(b)that it is the non-profit organization's overall practice to make routine use of such airfare. d. Air travel by other than commercial carrier.Costs of travel by non-profit organization-owned,-leased.or-chartered aircraft include the cost of lease,charter,operation(including personnel costs),maintenance,depreciation, insurance,and other related costs.The portion of such costs that exceeds the cost of allowable commercial air travel,as provided for in subparagraph]c.,is unallowable. e. Foreign travel.Direct charges for foreign travel costs are allowable only when the travel has received prior approval of the awarding agency.Each separate foreign trip must receive such approval.For purposes of this provision, "foreign travel"includes any travel outside Canada,Mexico,the United States,and any United States territories and possessions.However,the term"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. • http://www.whitehouse.gov/omb/circulars_aI 22_2004/ 7/20/2011 allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /2011 5 ; ,.. o O .00 a V2 d Q Q o • E °' o �� Ts t b V 4L. H 1.. V y .12 ^ It 'et W o 1 �y ti Mai 0 op O X Ud Q Z w e o E c ° i u 0 e 0 c 0 O ot: F= .n aa a> Q Q `� a) c X CZ7 aci ❑ a) F..I v1 v1 04 4„ •w f/.) .7 z A 0 W Y o d • -0 b O Q 0 ' d d x i- W e CG on.� : ° o ❑O y Uw C. a pzCO 0 3. ,4 on C7 G ;3 d V) w `. `/a a) a) Z •o 0 zz H . b Z Q d g d 4 c Z a © d w b d Z c4 H c i• E, - d c 0 1. O p,,, wwww LT. w .0OO c .: ' a an O C..) N1 dIA E: >, It U o 5 5 a� at ro 0 0 e � � b 1. LL 1.a) -. . yv .0 0 as cl. a+ . y +—. W 0 • c0 _ y . E) 5 >, V - co 1 •�" r-a N te Q i 0 .•OD 8 aJ a) CCI , a0i y G t�. a> C a) 0 w � w � 3 a at o C o d E F o a' ,, 0 a0i .G x E E w CI ••0 o y ua' O d o .� > >, cl G � co E t) 74 b oo a .� a) i N Z 0 0 4, 4, 2 o a U N `.t' a) -d 0 0 $� .1 6- 5 *4 CI as E~ z Q CCz• as O ea tification. O • EQUAL HOUSING OPPORTUNITY Revised and approved 11/4/2009 erage 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 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 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 action and for Federal agencies and pass-through entities to arrive at a management decision. The following specific information shall be 27 of Health is a major subdivision in the Department of Health and Human Services. 16 airfare to be allowable in such cases. (2)Unless a pattern of avoidance is detected,the Federal Government will generally not question a non-profit organization's determinations that customary standard airfare or other discount airfare is unavailable for specific trips if the non-profit organization can demonstrate either of the following:(a)that such airfare was not available in the specific case;or(b)that it is the non-profit organization's overall practice to make routine use of such airfare. d. Air travel by other than commercial carrier.Costs of travel by non-profit organization-owned,-leased.or-chartered aircraft include the cost of lease,charter,operation(including personnel costs),maintenance,depreciation, insurance,and other related costs.The portion of such costs that exceeds the cost of allowable commercial air travel,as provided for in subparagraph]c.,is unallowable. e. Foreign travel.Direct charges for foreign travel costs are allowable only when the travel has received prior approval of the awarding agency.Each separate foreign trip must receive such approval.For purposes of this provision, "foreign travel"includes any travel outside Canada,Mexico,the United States,and any United States territories and possessions.However,the term"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. • http://www.whitehouse.gov/omb/circulars_aI 22_2004/ 7/20/2011 allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /2011 EXHIBIT 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: ❑ 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: O EQUAL HOUSING Created and approved 10/26/2009 3. ,4 on C7 G ;3 d V) w `. `/a a) a) Z •o 0 zz H . b Z Q d g d 4 c Z a © d w b d Z c4 H c i• E, - d c 0 1. O p,,, wwww LT. w .0OO c .: ' a an O C..) N1 dIA E: >, It U o 5 5 a� at ro 0 0 e � � b 1. LL 1.a) -. . yv .0 0 as cl. a+ . y +—. W 0 • c0 _ y . E) 5 >, V - co 1 •�" r-a N te Q i 0 .•OD 8 aJ a) CCI , a0i y G t�. a> C a) 0 w � w � 3 a at o C o d E F o a' ,, 0 a0i .G x E E w CI ••0 o y ua' O d o .� > >, cl G � co E t) 74 b oo a .� a) i N Z 0 0 4, 4, 2 o a U N `.t' a) -d 0 0 $� .1 6- 5 *4 CI as E~ z Q CCz• as O ea tification. O • EQUAL HOUSING OPPORTUNITY Revised and approved 11/4/2009 erage 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 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 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 action and for Federal agencies and pass-through entities to arrive at a management decision. The following specific information shall be 27 of Health is a major subdivision in the Department of Health and Human Services. 16 airfare to be allowable in such cases. (2)Unless a pattern of avoidance is detected,the Federal Government will generally not question a non-profit organization's determinations that customary standard airfare or other discount airfare is unavailable for specific trips if the non-profit organization can demonstrate either of the following:(a)that such airfare was not available in the specific case;or(b)that it is the non-profit organization's overall practice to make routine use of such airfare. d. Air travel by other than commercial carrier.Costs of travel by non-profit organization-owned,-leased.or-chartered aircraft include the cost of lease,charter,operation(including personnel costs),maintenance,depreciation, insurance,and other related costs.The portion of such costs that exceeds the cost of allowable commercial air travel,as provided for in subparagraph]c.,is unallowable. e. Foreign travel.Direct charges for foreign travel costs are allowable only when the travel has received prior approval of the awarding agency.Each separate foreign trip must receive such approval.For purposes of this provision, "foreign travel"includes any travel outside Canada,Mexico,the United States,and any United States territories and possessions.However,the term"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. • http://www.whitehouse.gov/omb/circulars_aI 22_2004/ 7/20/2011 allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /2011 • 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: Developer's overhead * $ % $ Property Taxes $ % $ Property Insurance $ % $ Real Estate Transfer Fees $ % $ Recording Fees $ % $ Appraisal Fee(s) $ % $ Title Insurance $ % $ Omaha 100 Loan Fee $ % $ FHAS Counseling Fee $ % $ Advertising $ % $ Utilities $ % $ Grounds Maintenance $ % $ Other(explain: $ % $ Other(explain: ) $ % $ Other: $ % $ TOTALS $ % $ * Developer's overhead percentage is based on the percent of hard cost work completed in the attached in AIA or comparable document. 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: A EOVM.ROVSMCa Revised and approved 11/5/2009 OPPORTUNITY PP O ea tification. O • EQUAL HOUSING OPPORTUNITY Revised and approved 11/4/2009 erage 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 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 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 action and for Federal agencies and pass-through entities to arrive at a management decision. The following specific information shall be 27 of Health is a major subdivision in the Department of Health and Human Services. 16 airfare to be allowable in such cases. (2)Unless a pattern of avoidance is detected,the Federal Government will generally not question a non-profit organization's determinations that customary standard airfare or other discount airfare is unavailable for specific trips if the non-profit organization can demonstrate either of the following:(a)that such airfare was not available in the specific case;or(b)that it is the non-profit organization's overall practice to make routine use of such airfare. d. Air travel by other than commercial carrier.Costs of travel by non-profit organization-owned,-leased.or-chartered aircraft include the cost of lease,charter,operation(including personnel costs),maintenance,depreciation, insurance,and other related costs.The portion of such costs that exceeds the cost of allowable commercial air travel,as provided for in subparagraph]c.,is unallowable. e. Foreign travel.Direct charges for foreign travel costs are allowable only when the travel has received prior approval of the awarding agency.Each separate foreign trip must receive such approval.For purposes of this provision, "foreign travel"includes any travel outside Canada,Mexico,the United States,and any United States territories and possessions.However,the term"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. • http://www.whitehouse.gov/omb/circulars_aI 22_2004/ 7/20/2011 allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /2011 • SOIL WORK POLICY EXHIBIT For Housing Development Programs (January 2011) The City of Omaha operates several federally funded housing development programs. These programs may involve the removal of structures, installation of public infrastructure, and site preparation work prior to the construction of new residential structures. The United States Environmental Protection Agency("EPA")has identified a prominent lead hazard in Omaha: soil contamination attributed to emissions from the former ASARCO plant which was located in the former Union Pacific Railroad yards along the Missouri River. The Omaha Lead Superfund Site is generally bound by Florence to the north,the Missouri River to the east,the Douglas-Sarpy County line to the south,and 50th Street to the west. Only residential use properties are included in the Omaha Lead Superfund Site. Policy: The objectives of the soil work policy are to ensure site soils are safe for the property's intended use and to remove project sites from the Omaha Lead Superfund Site before they are conveyed to another party. The following steps are the preferred means of achieving these objectives while the EPA is conducting soil clean-up in Omaha: l. The City will first determine the soil clean up status of the project site according to the EPA. a. If the EPA has not tested the project site, then the City will request the EPA test soil prior to any soil work at the project site. The City will facilitate and/or expedite the sampling process when possible. 2. If the soil has been tested by the EPA and does not require clean up,then site work may proceed. 3. If the soil has been tested by the EPA and requires clean up,then: a. Site work involving soil may not occur until soil clean-up is completed. The City will facilitate and/or expedite the clean-up process when possible. Other options are permissible, as necessary,as long as the process is documented. Regardless of the method of addressing potential soil contamination, the City is required to test site soil at the end of a project before the property is sold or otherwise conveyed to another party. If the lead concentration exceeds 400 parts per million then further mitigation work and follow up testing is required. The Environmental Review for each project site will describe the steps taken to address lead contamination in soil. ication. O • EQUAL HOUSING OPPORTUNITY Revised and approved 11/4/2009 erage 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 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 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 action and for Federal agencies and pass-through entities to arrive at a management decision. The following specific information shall be 27 of Health is a major subdivision in the Department of Health and Human Services. 16 airfare to be allowable in such cases. (2)Unless a pattern of avoidance is detected,the Federal Government will generally not question a non-profit organization's determinations that customary standard airfare or other discount airfare is unavailable for specific trips if the non-profit organization can demonstrate either of the following:(a)that such airfare was not available in the specific case;or(b)that it is the non-profit organization's overall practice to make routine use of such airfare. d. Air travel by other than commercial carrier.Costs of travel by non-profit organization-owned,-leased.or-chartered aircraft include the cost of lease,charter,operation(including personnel costs),maintenance,depreciation, insurance,and other related costs.The portion of such costs that exceeds the cost of allowable commercial air travel,as provided for in subparagraph]c.,is unallowable. e. Foreign travel.Direct charges for foreign travel costs are allowable only when the travel has received prior approval of the awarding agency.Each separate foreign trip must receive such approval.For purposes of this provision, "foreign travel"includes any travel outside Canada,Mexico,the United States,and any United States territories and possessions.However,the term"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. • http://www.whitehouse.gov/omb/circulars_aI 22_2004/ 7/20/2011 allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /2011 24 CFR 85.43 ENFORCEMENT EXHIBIT (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 EOUAL HOUSING R2V. 5/7/08 OPPORTUNITY 1 ncy for audit may judge that any identified material weaknesses do not affect the management of Federal awards and provide a waiver. 32 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 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 action and for Federal agencies and pass-through entities to arrive at a management decision. The following specific information shall be 27 of Health is a major subdivision in the Department of Health and Human Services. 16 airfare to be allowable in such cases. (2)Unless a pattern of avoidance is detected,the Federal Government will generally not question a non-profit organization's determinations that customary standard airfare or other discount airfare is unavailable for specific trips if the non-profit organization can demonstrate either of the following:(a)that such airfare was not available in the specific case;or(b)that it is the non-profit organization's overall practice to make routine use of such airfare. d. Air travel by other than commercial carrier.Costs of travel by non-profit organization-owned,-leased.or-chartered aircraft include the cost of lease,charter,operation(including personnel costs),maintenance,depreciation, insurance,and other related costs.The portion of such costs that exceeds the cost of allowable commercial air travel,as provided for in subparagraph]c.,is unallowable. e. Foreign travel.Direct charges for foreign travel costs are allowable only when the travel has received prior approval of the awarding agency.Each separate foreign trip must receive such approval.For purposes of this provision, "foreign travel"includes any travel outside Canada,Mexico,the United States,and any United States territories and possessions.However,the term"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. • http://www.whitehouse.gov/omb/circulars_aI 22_2004/ 7/20/2011 allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /2011 STATE OF NEBRASKA DEPARTMENT OF ECONOMIC DEVELOPMENT NEIGHBORHOOD STABILIZATION PROGRAM 3 ("NSP3") CONTRACT NO. 11-NS-04 CFDA #14.228 This contract is entered into between the State of Nebraska, Department of Economic Development ("Department"), and the City of Omaha, Nebraska, 1819 Farnam Street, Omaha, NE 68183 ("Grantee"), upon the date of signature by both parties. RECITALS: A. HERA. In 2008, Congress appropriated funds for neighborhood stabilization, through assistance in the redevelopment of abandoned and foreclosed upon homes and residential properties, under Title III of Division B of the Housing and Economic Recovery Act of 2008 ("HERA"), federal Public Law 110-289—Approved July 30, 2008. The appropriation of funds made under HERA is referred to as the Neighborhood Stabilization Program 1 ("NSP1"). B. Recovery Act. In 2009, Congress appropriated additional funds for neighborhood stabilization under the heading `Community Planning and Development—Community Development Fund' in Title XII of Division A of the American Recovery and Reinvestment Act of 2009 ("Recovery Act"), federal Public Law 111-5 —Approved February 17, 2009. The appropriation of funds made under the Recovery Act is referred to as the Neighborhood Stabilization Program 2 ("NSP2"). C. Dodd-Frank Act. In 2010, Congress appropriated a third round of neighborhood stabilization funds in §1497 of Subtitle H of Title XIV of the Dodd-Frank Wall Street Reform and Consumer Protection Act, federal Public Law 111-203 —Approved July 21, 2010 ("Dodd-Frank Act"). The appropriation of funds made under §1497 of the Dodd- Frank Act is referred to as the Neighborhood Stabilization Program 3 ("NSP3"). D. CDBG. Funds appropriated for NSP1 under HERA, NSP2 under the Recovery Act, and NSP3 under the Dodd-Frank Act are to be considered as though such funds were Community Development Block Grant ("CDBG") funds under Title I of the Housing and Community Development Act of 1974, 42 U.S.C. §5301 et seq., unless HERA, the Recovery Act, or the Dodd-Frank Act specifically state otherwise. E. HUD and NSP3. The State of Nebraska has received NSP3 funds from the U.S. Department of Housing and Urban Development ("HUD"), such funds to be distributed as grants to eligible grantees to undertake and carryout eligible NSP3 projects. F. NSP3 Regulations. HUD has directed that except as provided in HUD regulatory notices concerning NSP3, the statutory and regulatory provisions governing the regular CDBG program shall apply to use of Dodd-Frank Act funds in NSP3 projects. HUD has published, in the Federal Register, a notice concerning NSP3 dated October 19, 2010. Complete copies of: (1) the portion of HERA referenced in ¶A above; (2) the portion of CDBG—NSP3—City of Omaha-11-NS-04-Page 1 of 21 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 EOUAL HOUSING R2V. 5/7/08 OPPORTUNITY 1 ncy for audit may judge that any identified material weaknesses do not affect the management of Federal awards and provide a waiver. 32 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 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 action and for Federal agencies and pass-through entities to arrive at a management decision. The following specific information shall be 27 of Health is a major subdivision in the Department of Health and Human Services. 16 airfare to be allowable in such cases. (2)Unless a pattern of avoidance is detected,the Federal Government will generally not question a non-profit organization's determinations that customary standard airfare or other discount airfare is unavailable for specific trips if the non-profit organization can demonstrate either of the following:(a)that such airfare was not available in the specific case;or(b)that it is the non-profit organization's overall practice to make routine use of such airfare. d. Air travel by other than commercial carrier.Costs of travel by non-profit organization-owned,-leased.or-chartered aircraft include the cost of lease,charter,operation(including personnel costs),maintenance,depreciation, insurance,and other related costs.The portion of such costs that exceeds the cost of allowable commercial air travel,as provided for in subparagraph]c.,is unallowable. e. Foreign travel.Direct charges for foreign travel costs are allowable only when the travel has received prior approval of the awarding agency.Each separate foreign trip must receive such approval.For purposes of this provision, "foreign travel"includes any travel outside Canada,Mexico,the United States,and any United States territories and possessions.However,the term"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. • http://www.whitehouse.gov/omb/circulars_aI 22_2004/ 7/20/2011 allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /2011 the Recovery Act referenced in ¶B above; (3) the portion of the Dodd-Frank Act referenced in ¶C above; and the October 19, 2010 HUD notice referenced in this ¶F are attached to this contract and incorporated herein by this reference. The Grantee is expected to be familiar with, and adhere to, these specific HUD NSP3 regulations, as well as the regular CDBG program regulations, in carrying out the terms of this contract. G. NSP3 LMMI National Objective. The NSP3 activities must satisfy a modified (for purposes of NSP3) CDBG national objective of principally benefitting low-,moderate-; and middle-income ("LMMI") persons. LMMI (the term to be used in referring to the CDBG national objective of the NSP3), is defined to mean households whose incomes do not exceed 120% of area median income. Only this LMMI national objective may be used for the NSP3 program activities. The Department is tasked by the Dodd-Frank Act, and by HUD to meet the further requirement that not less than 25% of funds the Department receives from HUD for NSP3 are used to benefit persons with household incomes not exceeding 50% of area median income. This task will be accomplished in specific contracts with specific grantees, and is not a general requirement of this _ contract unless specifically noted here: All funds under this contract must benefit persons with household incomes not exceeding 50% of the area median income by providing housing to such persons on residential property that was previously vacant, abandoned or foreclosed upon. H. Application and the "Project". The Grantee has submitted an application ("Application") to the Department for NSP3 funds, which Application the Department has approved and the contents of which were relied upon by the Department in making its funding decision to award funds for this NSP3 project. The Application is incorporated herein by this reference, setting forth a project which will undertake NSP3 activities and which must satisfy the NSP3 national objective of principally benefitting LMMI persons, (the "Project"). The Project may be summarized as immediately follows. This is a summary only, not a comprehensive rendition of all that the Project entails. Such detail of Project requirements must be gleaned from a combination of Grantee's Application and the Department's particular requirements as documented in contract negotiations and discussions with Grantee. The construction of 5 single family housing units on previously vacant property in Census Tract 31055005300. The legal description as provided by the Grantee of the property to be redeveloped in Omaha, Nebraska is referenced as follows: Orchard Hill Addition, Lot 22, Block 11. Orchard Hill Addition, Lot 7 & 8, Block 11. Orchard Hill Addition, Lots 11 & 12, Block 8. CDBG—NSP3—City of Omaha-11-NS-04—Page 2 of 21 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 EOUAL HOUSING R2V. 5/7/08 OPPORTUNITY 1 ncy for audit may judge that any identified material weaknesses do not affect the management of Federal awards and provide a waiver. 32 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 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 action and for Federal agencies and pass-through entities to arrive at a management decision. The following specific information shall be 27 of Health is a major subdivision in the Department of Health and Human Services. 16 airfare to be allowable in such cases. (2)Unless a pattern of avoidance is detected,the Federal Government will generally not question a non-profit organization's determinations that customary standard airfare or other discount airfare is unavailable for specific trips if the non-profit organization can demonstrate either of the following:(a)that such airfare was not available in the specific case;or(b)that it is the non-profit organization's overall practice to make routine use of such airfare. d. Air travel by other than commercial carrier.Costs of travel by non-profit organization-owned,-leased.or-chartered aircraft include the cost of lease,charter,operation(including personnel costs),maintenance,depreciation, insurance,and other related costs.The portion of such costs that exceeds the cost of allowable commercial air travel,as provided for in subparagraph]c.,is unallowable. e. Foreign travel.Direct charges for foreign travel costs are allowable only when the travel has received prior approval of the awarding agency.Each separate foreign trip must receive such approval.For purposes of this provision, "foreign travel"includes any travel outside Canada,Mexico,the United States,and any United States territories and possessions.However,the term"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. • http://www.whitehouse.gov/omb/circulars_aI 22_2004/ 7/20/2011 allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /2011 I. Definitions, Affordability Requirements, Housing Rehabilitation Standards, and Housing Counseling. Depending upon the nature of the Project, certain definitions, affordability requirements, and/or housing rehabilitation standards, all as adopted and approved in the NSP3 plan submitted by the Department and approved by HUD, will apply to the Project. These definitions, affordability requirements, and housing rehabilitation standards are set forth as Appendix pages following the signature page of this contract, and are incorporated herein by this reference. The Grantee must adhere to these definitions and requirements when applicable to the Project. The definitions and requirements applicable to the Project are: • Description of continued affordability for NSP3 If the Project NSP3 activities involve assistance to homebuyers, then the Grantee is responsible for fulfilling the HUD requirement that such homebuyers must receive at least eight (8) hours of homebuyer counseling from a HUD-approved housing counseling agency before obtaining a mortgage loan. In the circumstance where such a HUD-approved housing counseling agency is not within the Grantee's jurisdiction, then the required homebuyer counseling may be obtained from a REACH Affiliate Organization (REACH = Readiness Education Awareness Collaborative for Homebuyer and Homeowners Education). This substitute use of REACH affiliates for homebuyer counseling has been specifically approved by HUD at the Department's request, for the Department's NSP3 projects, including this Project. J. NSP3 Housing Units. The Project includes assisting housing units, as such units are described, and as the project requirements are prescribed, in ¶H, ¶I, and this ¶J and in the Table of Project Requirements for NSP3 Project found below, which Table is incorporated within this paragraph by this reference. The percentage references in the table below, e.g., 120%, include the implied phrase "at or below" prior to the % and the implied phrase "of the area median income per the most recent HUD income limits" after the %. Table of Project Requirements for NSP3 Project Requirement Descriptions Data Total number of units in the Project-- 5 units Total number of NSP3-assisted units 5 units Number of NSP3 units 120%— 0 units Number of NSP3 units 50%--. 5 units [REMAINDER OF PAGE LEFT INTENTIONALLY BLANK] CDBG—NSP3—City of Omaha-11-NS-04—Page 3 of 21 ously vacant property in Census Tract 31055005300. The legal description as provided by the Grantee of the property to be redeveloped in Omaha, Nebraska is referenced as follows: Orchard Hill Addition, Lot 22, Block 11. Orchard Hill Addition, Lot 7 & 8, Block 11. Orchard Hill Addition, Lots 11 & 12, Block 8. CDBG—NSP3—City of Omaha-11-NS-04—Page 2 of 21 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 EOUAL HOUSING R2V. 5/7/08 OPPORTUNITY 1 ncy for audit may judge that any identified material weaknesses do not affect the management of Federal awards and provide a waiver. 32 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 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 action and for Federal agencies and pass-through entities to arrive at a management decision. The following specific information shall be 27 of Health is a major subdivision in the Department of Health and Human Services. 16 airfare to be allowable in such cases. (2)Unless a pattern of avoidance is detected,the Federal Government will generally not question a non-profit organization's determinations that customary standard airfare or other discount airfare is unavailable for specific trips if the non-profit organization can demonstrate either of the following:(a)that such airfare was not available in the specific case;or(b)that it is the non-profit organization's overall practice to make routine use of such airfare. d. Air travel by other than commercial carrier.Costs of travel by non-profit organization-owned,-leased.or-chartered aircraft include the cost of lease,charter,operation(including personnel costs),maintenance,depreciation, insurance,and other related costs.The portion of such costs that exceeds the cost of allowable commercial air travel,as provided for in subparagraph]c.,is unallowable. e. Foreign travel.Direct charges for foreign travel costs are allowable only when the travel has received prior approval of the awarding agency.Each separate foreign trip must receive such approval.For purposes of this provision, "foreign travel"includes any travel outside Canada,Mexico,the United States,and any United States territories and possessions.However,the term"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. • http://www.whitehouse.gov/omb/circulars_aI 22_2004/ 7/20/2011 allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /2011 AGREEMENT: Premised on the Recitals above, and in consideration of the mutual promises and understandings of the parties set forth below, the parties agree as follows: PART I: TERMS AND CONDITIONS. §1.01 Amount, Use, and Payment of NSP3 Funds. The total amount of NSP3 funds paid by the Department to the Grantee for allowable expenses incurred will not exceed $260,000. Of that amount, approved administrative and audit expenses will not exceed $10,000. The NSP3 grant funds must be used to fund the Project as detailed in the Application and in the Recitals at H. Part V (Compliance with Applicable Laws and Regulations) of this contract incorporates, as being applicable to this contract, all of the Department's administrative requirements which are contained in the Nebraska Community Development Block Grant Program Administration Manual. Those administrative requirements contain many restrictions governing the receipt of CDBG funds from the Department. These requirements also apply to NSP3 funds from the Department. Requests by the Grantee for reimbursement of project administration expenses will not be pa id d by the Department unless the CDBG Certified Administrator who was identified in the Application, and thus was approved by the Department as part of the approval of the Application, is available to conduct administration of the Project, at the time of each request for reimbursement of administration expenses, with this requirement applicable at all times through project completion (including final project reports). Any change in this identified CDBG Certified Administrator for this Project, in order to be recognized by the Department, must have the written approval of the Department. As a cross-reference, note that §2.08 requires a CDBG Certified Administrator to achieve the initial Release of Funds for the Project. To request payment of allowable expenses, the Grantee must submit a request for payment to the Department, in the manner and form prescribed from time to time by the Department, mailed to the Community and Rural Development Division, Department of Economic Development, 301 Centennial Mall South, P.O. Box 94666, Lincoln, Nebraska 68509-4666. §1.02 Time of Performance; Expenditure Deadlines. (a) The period covered under this contract will be 24 months from June 6, 2011. The termination date of this contract will be June 5, 2013. All of the activities and services required of the Grantee, except for administration and audit, will be completed on or before this date. • CDBG—NSP3—City of Omaha-11-NS-04—Page 4 of 21 Omaha, Nebraska is referenced as follows: Orchard Hill Addition, Lot 22, Block 11. Orchard Hill Addition, Lot 7 & 8, Block 11. Orchard Hill Addition, Lots 11 & 12, Block 8. CDBG—NSP3—City of Omaha-11-NS-04—Page 2 of 21 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 EOUAL HOUSING R2V. 5/7/08 OPPORTUNITY 1 ncy for audit may judge that any identified material weaknesses do not affect the management of Federal awards and provide a waiver. 32 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 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 action and for Federal agencies and pass-through entities to arrive at a management decision. The following specific information shall be 27 of Health is a major subdivision in the Department of Health and Human Services. 16 airfare to be allowable in such cases. (2)Unless a pattern of avoidance is detected,the Federal Government will generally not question a non-profit organization's determinations that customary standard airfare or other discount airfare is unavailable for specific trips if the non-profit organization can demonstrate either of the following:(a)that such airfare was not available in the specific case;or(b)that it is the non-profit organization's overall practice to make routine use of such airfare. d. Air travel by other than commercial carrier.Costs of travel by non-profit organization-owned,-leased.or-chartered aircraft include the cost of lease,charter,operation(including personnel costs),maintenance,depreciation, insurance,and other related costs.The portion of such costs that exceeds the cost of allowable commercial air travel,as provided for in subparagraph]c.,is unallowable. e. Foreign travel.Direct charges for foreign travel costs are allowable only when the travel has received prior approval of the awarding agency.Each separate foreign trip must receive such approval.For purposes of this provision, "foreign travel"includes any travel outside Canada,Mexico,the United States,and any United States territories and possessions.However,the term"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. • http://www.whitehouse.gov/omb/circulars_aI 22_2004/ 7/20/2011 allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /2011 (b) 50% expenditure deadline. HUD has imposed upon the Department an obligation to expend at least 50% of all NSP3 funds within 2 years of the date the funds became available to the Department. If 50% of all NSP3 funds are not expended by the Department prior to the 2 year expenditure deadline, HUD will recapture the unexpected funds. Therefore, the Department is in turn imposing a similar obligation onto the Grantee. The Grantee is required to expend, request, and draw from the Department at least 50% of Grantee's NSP3 grant no later than December 31, 2012. Grantee's failure to adhere to this requirement for the project which is the subject of this contract may (at the Department's option) result in Grantee's award hereunder being deobligated with respect to all unexpended funds. (c) 100% expenditure deadline. HUD has imposed upon the Department a100% expenditure deadline of March 10, 2014. Any funds not expended by the Department by March 10, 2014 will be recaptured from the Department by HUD. The Grantee is, by this reference, notified of this requirement, the obvious consequence of which is that Grantee must appropriately obligate, request, and draw all NSP3 funds from the Department for the Project which is the subject of this contract by no later than the March 10, 2014 deadline, notwithstanding any contractual or award timelines which might (even by extensions) exceed such deadline. §1.03 Incorporation of RECITALS Paragraphs as Agreed Terms of Contract. All provisions of paragraphs A, B, C, D, E, F, G H, I, and J of the RECITALS above are incorporated as agreed provisions of the contract. §1.04 National Objective Requirement. Failure by the Grantee to fulfill the national objective requirement for NSP3 funds, as noted in ¶G of the RECITALS, will result in grant funds being disallowed and required to be returned to the Department. §1.05 Program Income. Program income is regulated by the provisions of the NSP3 Regulations. The text of those Regulations should be consulted for definitions and for other guidance concerning program income. PART II: SPECIAL CONDITIONS FOR RELEASE OF FUNDS. Funding of the amount stipulated in §1.01 of this contract will not be released to the Grantee by the Department until the following special conditions for release of funds are met. These special conditions must be satisfactorily completed no later than August 6, 2011. The Department reserves the right to cancel the contract if these special conditions are not met within this specified time frame. CDBG—NSP3—City of Omaha-11-NS-04—Page 5 of 21 Ili • CDBG—NSP3—City of Omaha-11-NS-04—Page 4 of 21 Omaha, Nebraska is referenced as follows: Orchard Hill Addition, Lot 22, Block 11. Orchard Hill Addition, Lot 7 & 8, Block 11. Orchard Hill Addition, Lots 11 & 12, Block 8. CDBG—NSP3—City of Omaha-11-NS-04—Page 2 of 21 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 EOUAL HOUSING R2V. 5/7/08 OPPORTUNITY 1 ncy for audit may judge that any identified material weaknesses do not affect the management of Federal awards and provide a waiver. 32 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 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 action and for Federal agencies and pass-through entities to arrive at a management decision. The following specific information shall be 27 of Health is a major subdivision in the Department of Health and Human Services. 16 airfare to be allowable in such cases. (2)Unless a pattern of avoidance is detected,the Federal Government will generally not question a non-profit organization's determinations that customary standard airfare or other discount airfare is unavailable for specific trips if the non-profit organization can demonstrate either of the following:(a)that such airfare was not available in the specific case;or(b)that it is the non-profit organization's overall practice to make routine use of such airfare. d. Air travel by other than commercial carrier.Costs of travel by non-profit organization-owned,-leased.or-chartered aircraft include the cost of lease,charter,operation(including personnel costs),maintenance,depreciation, insurance,and other related costs.The portion of such costs that exceeds the cost of allowable commercial air travel,as provided for in subparagraph]c.,is unallowable. e. Foreign travel.Direct charges for foreign travel costs are allowable only when the travel has received prior approval of the awarding agency.Each separate foreign trip must receive such approval.For purposes of this provision, "foreign travel"includes any travel outside Canada,Mexico,the United States,and any United States territories and possessions.However,the term"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. • http://www.whitehouse.gov/omb/circulars_aI 22_2004/ 7/20/2011 allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /2011 • §2.01 Grantee Information Sheet. Submission and completion of the Grantee Information Sheet. §2.02 Environmental Review. Documentation evidencing the Grantee's completion of its responsibilities for environmental review and decision making pertaining to the Program, and its compliance with the National Environmental Policy Act of 1969 (NEPA), other provisions of Federal law as specified in 24 C.F.R. Part 58, which furthers the purposes of NEPA. §2.03 Authorization to Request Funds Form. Completion by the appropriate official of the Grantee, and submission to the Department, of the Department's Authorization to Request Funds form. §2.04 Financial Management. Documentation evidencing completion of all financial management system requirements and execution of the Financial Management Certification form prescribed by the Department. §2.05 Procurement Standards. Documentation evidencing adoption of procurement standards equivalent to those established in 24 C.F.R. §85.36 and 24 C.F.R. §570.489. §2.06 Excessive Force Certification. If the Grantee is a unit of general local government, then it must provided documentation that it has adopted a policy to prohibit the use of excessive force by local law enforcement agencies against any individual engaged in nonviolent civil rights demonstrations. §2.07 Fair Housing. Documentation identifying the local fair housing representative for the Grantee, including the representative's name and contact information. The Grantee must also submit a description of the actions Grantee will take during the course of the grant to fulfill the requirements to affirmatively further fair housing, and submit documentation demonstrating the actions that were actually taken. The requirement to submit documentation demonstrating the actions that were actually taken need not be submitted within the time frame for completion of the special conditions, but such documentation must be submitted prior to closeout of the grant. The Department's Nebraska Community Development Block Grant Program Administration Manual CDBG—NSP3--City of Omaha-11-NS-04—Page 6 of 21 contract will not be released to the Grantee by the Department until the following special conditions for release of funds are met. These special conditions must be satisfactorily completed no later than August 6, 2011. The Department reserves the right to cancel the contract if these special conditions are not met within this specified time frame. CDBG—NSP3—City of Omaha-11-NS-04—Page 5 of 21 Ili • CDBG—NSP3—City of Omaha-11-NS-04—Page 4 of 21 Omaha, Nebraska is referenced as follows: Orchard Hill Addition, Lot 22, Block 11. Orchard Hill Addition, Lot 7 & 8, Block 11. Orchard Hill Addition, Lots 11 & 12, Block 8. CDBG—NSP3—City of Omaha-11-NS-04—Page 2 of 21 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 EOUAL HOUSING R2V. 5/7/08 OPPORTUNITY 1 ncy for audit may judge that any identified material weaknesses do not affect the management of Federal awards and provide a waiver. 32 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 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 action and for Federal agencies and pass-through entities to arrive at a management decision. The following specific information shall be 27 of Health is a major subdivision in the Department of Health and Human Services. 16 airfare to be allowable in such cases. (2)Unless a pattern of avoidance is detected,the Federal Government will generally not question a non-profit organization's determinations that customary standard airfare or other discount airfare is unavailable for specific trips if the non-profit organization can demonstrate either of the following:(a)that such airfare was not available in the specific case;or(b)that it is the non-profit organization's overall practice to make routine use of such airfare. d. Air travel by other than commercial carrier.Costs of travel by non-profit organization-owned,-leased.or-chartered aircraft include the cost of lease,charter,operation(including personnel costs),maintenance,depreciation, insurance,and other related costs.The portion of such costs that exceeds the cost of allowable commercial air travel,as provided for in subparagraph]c.,is unallowable. e. Foreign travel.Direct charges for foreign travel costs are allowable only when the travel has received prior approval of the awarding agency.Each separate foreign trip must receive such approval.For purposes of this provision, "foreign travel"includes any travel outside Canada,Mexico,the United States,and any United States territories and possessions.However,the term"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. • http://www.whitehouse.gov/omb/circulars_aI 22_2004/ 7/20/2011 allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /2011 contains additional detail about affirmatively furthering fair housing. §2.08 CDBG Certified Administrator Required. Documentation must be submitted to the Department identifying the CDBG Certified Administrator the Grantee will use for the project. The Department's Nebraska Community Development Block Grant Program Administration Manual contains details about the certification process. In addition to satisfying this special condition as a prerequisite for receiving a Notice of Release of Funds, Grantee should note as a cross-reference the contract provision in §1.01 regarding the need for maintaining a Department-approved CDBG Certified Administrator in order to be paid for Project administrative costs. §2.09 Other Special Conditions. Grantee's program guidelines must be approved, in writing, as acceptable to the Department, by the Department's Program Representative for Grantee's program. PART Ill: SOURCES AND USES OF FUNDS. §3.01 Sources and Uses of Funds. SOURCES- * NSP3 OTHER TOTAL USES (Activities)l, 542 SF Hsg. New Const. $250,000 $390,000 $640,000 Homeownership Total Project cost $250,000 $390,000 $640,000 General Administration $10,000 $0 $10,000 Total Project + General Admin. $260,000 $390,000 $650,000 The Sources and Uses of Funds table above reflects: • The anticipated total costs of the NSP3-assisted project. • The NSP3-assisted activities being funded. • The sources and amounts of other matching funds required for each activity. • The maximum authorized NSP3 funds for each NSP3-assisted activity. • The proportionality (derived by computation, not expressly shown) of funding from all funding sources, for each activity and for the project in total. Disbursement of NSP3 funds will be made only on a pro rata basis with all other funding sources, for each activity and for the project in total. NSP3 funds will not be the first funds invested in the project—but rather—NSP3 funds will flow into the project in proportion to all other funding sources. CDBG—NSP3—City of Omaha-11-NS-04—Page 7 of 21 maha-11-NS-04—Page 6 of 21 contract will not be released to the Grantee by the Department until the following special conditions for release of funds are met. These special conditions must be satisfactorily completed no later than August 6, 2011. The Department reserves the right to cancel the contract if these special conditions are not met within this specified time frame. CDBG—NSP3—City of Omaha-11-NS-04—Page 5 of 21 Ili • CDBG—NSP3—City of Omaha-11-NS-04—Page 4 of 21 Omaha, Nebraska is referenced as follows: Orchard Hill Addition, Lot 22, Block 11. Orchard Hill Addition, Lot 7 & 8, Block 11. Orchard Hill Addition, Lots 11 & 12, Block 8. CDBG—NSP3—City of Omaha-11-NS-04—Page 2 of 21 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 EOUAL HOUSING R2V. 5/7/08 OPPORTUNITY 1 ncy for audit may judge that any identified material weaknesses do not affect the management of Federal awards and provide a waiver. 32 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 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 action and for Federal agencies and pass-through entities to arrive at a management decision. The following specific information shall be 27 of Health is a major subdivision in the Department of Health and Human Services. 16 airfare to be allowable in such cases. (2)Unless a pattern of avoidance is detected,the Federal Government will generally not question a non-profit organization's determinations that customary standard airfare or other discount airfare is unavailable for specific trips if the non-profit organization can demonstrate either of the following:(a)that such airfare was not available in the specific case;or(b)that it is the non-profit organization's overall practice to make routine use of such airfare. d. Air travel by other than commercial carrier.Costs of travel by non-profit organization-owned,-leased.or-chartered aircraft include the cost of lease,charter,operation(including personnel costs),maintenance,depreciation, insurance,and other related costs.The portion of such costs that exceeds the cost of allowable commercial air travel,as provided for in subparagraph]c.,is unallowable. e. Foreign travel.Direct charges for foreign travel costs are allowable only when the travel has received prior approval of the awarding agency.Each separate foreign trip must receive such approval.For purposes of this provision, "foreign travel"includes any travel outside Canada,Mexico,the United States,and any United States territories and possessions.However,the term"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. • http://www.whitehouse.gov/omb/circulars_aI 22_2004/ 7/20/2011 allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /2011 Grantee shall adhere to the limitations and matching proportionality requirements reflected in the Sources and Uses of Funds table and the expressions of what such table reflects as explained in the bullet-points immediately above. §3.02 Limitation on General Administration Reimbursement. The Department will not reimburse the Grantee for more than 50% of the total amount of general administration funds available for Grantee's Project until such time as the Grantee has incurred and requested, and the Department has provided reimbursement to the Grantee for, 50% of the non-administration Project activity costs eligible for reimbursement by the Department. After 50% of the general administration funds available for Grantee's Project have been requested and drawn by the Grantee, the Department will only allow the Grantee to draw general administration funds in proportion to Project activity funds (e.g. 60% of the general administration funds may be drawn when 60% of the Project activity costs are drawn; 70% of the general administration funds may be drawn when 70% of the Project activity costs are drawn, etc.). There is an exception to this requirement in that 10% of the funds available for general administration will be held by the Department until the documents required by the Department for closeout of the Grantee's Project have been received and accepted by the Department. The withholding of the final 10% of funds for general administration will not prevent the Grantee from requesting and receiving the final 10% of Project activity costs. PART IV: OTHER CONTRACTUAL CONDITIONS. §4.01 Legal Authority and Acceptance of Environmental Review Responsibility. By signing this contract, the Grantee, if it is a unit of general local government, certifies that it possesses legal authority to accept NSP3 funds, and to carry out the Project described in this contract; and that the Grantee's chief elected official: (a) Consents to assume the status of responsible Federal official and the responsibilities for environmental review and decision making under the National Environmental Policy Act of, 1969 (NEPA) and other provisions of Federal law as specified in 24 C.F.R. Part 58 which further the purposes of NEPA; and, (b) Is authorized and consents on behalf of the Grantee that they accept the jurisdiction of the Federal courts for the purpose of enforcement of their responsibilities as such responsible Federal official. §4.02 Designation of Officials to Execute Contract and Amendments. The Director of the Department or their designee is the official authorized to execute this contract and any amendments to this contract, on behalf of the Department. The Chief Elected Official (in the case a Grantee which is a unit of general local • CDBG—NSP3—City of Omaha-11-NS-04—Page 8 of 21 CDBG—NSP3—City of Omaha-11-NS-04—Page 2 of 21 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 EOUAL HOUSING R2V. 5/7/08 OPPORTUNITY 1 ncy for audit may judge that any identified material weaknesses do not affect the management of Federal awards and provide a waiver. 32 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 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 action and for Federal agencies and pass-through entities to arrive at a management decision. The following specific information shall be 27 of Health is a major subdivision in the Department of Health and Human Services. 16 airfare to be allowable in such cases. (2)Unless a pattern of avoidance is detected,the Federal Government will generally not question a non-profit organization's determinations that customary standard airfare or other discount airfare is unavailable for specific trips if the non-profit organization can demonstrate either of the following:(a)that such airfare was not available in the specific case;or(b)that it is the non-profit organization's overall practice to make routine use of such airfare. d. Air travel by other than commercial carrier.Costs of travel by non-profit organization-owned,-leased.or-chartered aircraft include the cost of lease,charter,operation(including personnel costs),maintenance,depreciation, insurance,and other related costs.The portion of such costs that exceeds the cost of allowable commercial air travel,as provided for in subparagraph]c.,is unallowable. e. Foreign travel.Direct charges for foreign travel costs are allowable only when the travel has received prior approval of the awarding agency.Each separate foreign trip must receive such approval.For purposes of this provision, "foreign travel"includes any travel outside Canada,Mexico,the United States,and any United States territories and possessions.However,the term"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. • http://www.whitehouse.gov/omb/circulars_aI 22_2004/ 7/20/2011 allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /2011 government); or a duly authorized officer (in the case of a Grantee which is not a governmental entity) is the official authorized to execute this contract and any amendments to this contract, on behalf of the Grantee. The Grantee or the Department may request amendments to this contract. Amendments will not take effect until mutually agreed to in writing by both parties. Grantee should note that the Department is not contemplating being favorably disposed to allowing amendments/extensions of the contract's termination date. §4.03 Grantee Compliance with NSP3 Regulations, CDBG Regulations Generally, and Particularly Regarding Uniform Administrative Requirements. The Grantee will comply with the NSP3 Regulations, with CDBG Regulations generally at 24 C.F.R. Part 570, including particularly the Uniform Administrative Requirements set forth in 24 C.F.R. §570.502, or any reasonably equivalent procedures and requirements that the Department may prescribe. - §4.04 Record Keeping. The Grantee agrees to keep such records as specified in 24 C.F.R. §570.506, Records to be Maintained, and any other records as the Department may reasonably require. The Grantee agrees to keep such records so as to allow the Department to perform a 24 C.F.R. §570.492, State's review and audits. All records pertinent to this grant and work undertaken as part of the Project, will be retained by the Grantee for a period of ten (10) years after notification by the Department that the grant has been closed. If any claim, litigation, or audit is initiated before the expiration of the ten-year period, the records must be retained.until all claims, litigation, or audits have been resolved. The Department and duly authorized officials of the state and federal government will have full access to, and the right to examine, audit, excerpt and/or transcribe, any of the Grantee's records pertaining to all matters covered by this contract. §4.05 Reporting Requirements. Because of the NSP3 funding of this Project, the Department has additional, and more frequent, reporting requirements imposed upon it by HUD than is the case in the usual CDBG-assisted project. Consequently, the Grantee will be required to adhere to these additional reporting requirements, in order to provide the information to the Department which the Department must report to HUD. HUD reserves the right to restrict or withhold access to NSP3 funds in the event of delinquent, incomplete, or inaccurate reporting to HUD by the Department. Any such inability of the Department to access NSP3 funds from HUD, when the inability arises from the Grantee's reporting deficiencies to the Department, will result in the consequence to the Grantee that Project funds will be CDBG—NSP3—City of Omaha-11-NS-04—Page 9 of 21 21 CDBG—NSP3—City of Omaha-11-NS-04—Page 2 of 21 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 EOUAL HOUSING R2V. 5/7/08 OPPORTUNITY 1 ncy for audit may judge that any identified material weaknesses do not affect the management of Federal awards and provide a waiver. 32 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 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 action and for Federal agencies and pass-through entities to arrive at a management decision. The following specific information shall be 27 of Health is a major subdivision in the Department of Health and Human Services. 16 airfare to be allowable in such cases. (2)Unless a pattern of avoidance is detected,the Federal Government will generally not question a non-profit organization's determinations that customary standard airfare or other discount airfare is unavailable for specific trips if the non-profit organization can demonstrate either of the following:(a)that such airfare was not available in the specific case;or(b)that it is the non-profit organization's overall practice to make routine use of such airfare. d. Air travel by other than commercial carrier.Costs of travel by non-profit organization-owned,-leased.or-chartered aircraft include the cost of lease,charter,operation(including personnel costs),maintenance,depreciation, insurance,and other related costs.The portion of such costs that exceeds the cost of allowable commercial air travel,as provided for in subparagraph]c.,is unallowable. e. Foreign travel.Direct charges for foreign travel costs are allowable only when the travel has received prior approval of the awarding agency.Each separate foreign trip must receive such approval.For purposes of this provision, "foreign travel"includes any travel outside Canada,Mexico,the United States,and any United States territories and possessions.However,the term"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. • http://www.whitehouse.gov/omb/circulars_aI 22_2004/ 7/20/2011 allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /2011 withheld from access by the Grantee. The Grantee must provide calendar quarter performance reports to the Department on the progress of the Project, in the form and manner specified by the Department, until closeout of the Grantee's NSP3 grant which is the subject of this contract. Each calendar quarter performance report must be submitted to the Department within 15 days of the end of the calendar quarter. In addition to calendar quarter reporting, beginning three (3) months prior to Grantee's 50% expenditure deadline identified in §1.02(b), such date being December 31, 2012, Grantee must report monthly on its use and expenditure of Project funds, in the form and manner specified by the Department. Each monthly performance report must be submitted to the Department within five (5) days of the last day of each of the three (3) months prior to the 50% expenditure deadline (i.e. within five (5) days after the last day of September 2012, October 2012, and November of 2012). Provided however, after the Department has accepted and approved a monthly performance report from the Grantee showing use or expenditure of 50% of the Project funds, this monthly reporting requirement will end. However, the Grantee will continue to provide calendar quarter performance reports as described above. In addition to the reporting requirements described above, beginning three (3) months prior to Grantee's 100% expenditure deadline identified in §1.02(c), such date being March 10, 2014, the Grantee must report monthly on its use and expenditure of Project funds, in the form and manner specified by the Department. Each monthly performance report must be submitted to the Department within five (5) days of the last day of each of the three (3) months prior to the 100% expenditure deadline (i.e. within five (5) days after the last day of December 2013, January 2014 and February 2014). This requirement to provide monthly reports three (3) months prior to the Grantee's 100% expenditure deadline may be waived by the Department, if Grantee's Project has reached grant closeout. The Grantee will also be required to submit a final performance and financial report, in such form and within such times as the Department may prescribe, at the occasion of grant closeout. Finally, the Grantee will also submit any other reports or information requested by the Department, to the Department in the form and manner prescribed by the Department, in order to allow the Department to meet reporting requirements imposed upon the Department by HUD. The Grantee is hereby acknowledging and agreeing that the Grantee's Project reporting duties to the Department will be those as are required under both the regular CDBG program as well as those additional reporting requirements imposed as a result of NSP3 funding. Grantee's failure to adhere to the performance reporting requirements may (at the CDBG—NSP3—City of Omaha-11-NS-04—Page 10 of 21 mines 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 EOUAL HOUSING R2V. 5/7/08 OPPORTUNITY 1 ncy for audit may judge that any identified material weaknesses do not affect the management of Federal awards and provide a waiver. 32 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 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 action and for Federal agencies and pass-through entities to arrive at a management decision. The following specific information shall be 27 of Health is a major subdivision in the Department of Health and Human Services. 16 airfare to be allowable in such cases. (2)Unless a pattern of avoidance is detected,the Federal Government will generally not question a non-profit organization's determinations that customary standard airfare or other discount airfare is unavailable for specific trips if the non-profit organization can demonstrate either of the following:(a)that such airfare was not available in the specific case;or(b)that it is the non-profit organization's overall practice to make routine use of such airfare. d. Air travel by other than commercial carrier.Costs of travel by non-profit organization-owned,-leased.or-chartered aircraft include the cost of lease,charter,operation(including personnel costs),maintenance,depreciation, insurance,and other related costs.The portion of such costs that exceeds the cost of allowable commercial air travel,as provided for in subparagraph]c.,is unallowable. e. Foreign travel.Direct charges for foreign travel costs are allowable only when the travel has received prior approval of the awarding agency.Each separate foreign trip must receive such approval.For purposes of this provision, "foreign travel"includes any travel outside Canada,Mexico,the United States,and any United States territories and possessions.However,the term"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. • http://www.whitehouse.gov/omb/circulars_aI 22_2004/ 7/20/2011 allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /2011 Department's option) result in Grantee's award hereunder being deobligated with respect to all unexpended funds. §4.06 Audits. Audits of this grant will be conducted in accordance with the Single Audit Act of 1984, as amended, and the Office of Management and Budget (OMB) Circular A-133. Generally Accepted Government Auditing Standards (GAGAS) must be followed. Audit costs are an allowable general administration cost subject to limitations established by the Act and the Department. §4.07 Conflict of Interest. The Grantee will comply with the conflict of interest prohibitions set forth for the CDBG program at 24 C.F.R. §570.489. In the event prohibited conflicts of interest arise, exceptions to the prohibition may be granted, on a case-by-case basis, by the Department. The procedures governing such exception requests are set forth in the Department's CDBG Administration Manual. §4.08 Applicability to Subrecipients and Contractors. The provisions of the contract will be made binding on any subrecipient or contractor of the Grantee, and the Grantee will remain fully obligated under the provisions of this contract. §4.09 Waivers; and Assignment of Interest. No conditions or provisions of this contract can be waived unless approved by the Department in writing. The Grantee will not assign or transfer any interest in this contract to any other party without the written consent of the Department. §4.10 Non-Waiver of Rights. The Department's failure to insist upon the strict performance of any provision of this contract, or failure to exercise any right based upon breach, will not constitute a waiver of any rights under this contract. §4.11 Severability. If any provision of this contract, or its application to any person or circumstances, is held invalid by any court of competent jurisdiction, the invalidity will not affect other provisions of this contract. CDBG—NSP3—City of Omaha-11-NS-04—Page 11 of 21 ne may be waived by the Department, if Grantee's Project has reached grant closeout. The Grantee will also be required to submit a final performance and financial report, in such form and within such times as the Department may prescribe, at the occasion of grant closeout. Finally, the Grantee will also submit any other reports or information requested by the Department, to the Department in the form and manner prescribed by the Department, in order to allow the Department to meet reporting requirements imposed upon the Department by HUD. The Grantee is hereby acknowledging and agreeing that the Grantee's Project reporting duties to the Department will be those as are required under both the regular CDBG program as well as those additional reporting requirements imposed as a result of NSP3 funding. Grantee's failure to adhere to the performance reporting requirements may (at the CDBG—NSP3—City of Omaha-11-NS-04—Page 10 of 21 mines 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 EOUAL HOUSING R2V. 5/7/08 OPPORTUNITY 1 ncy for audit may judge that any identified material weaknesses do not affect the management of Federal awards and provide a waiver. 32 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 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 action and for Federal agencies and pass-through entities to arrive at a management decision. The following specific information shall be 27 of Health is a major subdivision in the Department of Health and Human Services. 16 airfare to be allowable in such cases. (2)Unless a pattern of avoidance is detected,the Federal Government will generally not question a non-profit organization's determinations that customary standard airfare or other discount airfare is unavailable for specific trips if the non-profit organization can demonstrate either of the following:(a)that such airfare was not available in the specific case;or(b)that it is the non-profit organization's overall practice to make routine use of such airfare. d. Air travel by other than commercial carrier.Costs of travel by non-profit organization-owned,-leased.or-chartered aircraft include the cost of lease,charter,operation(including personnel costs),maintenance,depreciation, insurance,and other related costs.The portion of such costs that exceeds the cost of allowable commercial air travel,as provided for in subparagraph]c.,is unallowable. e. Foreign travel.Direct charges for foreign travel costs are allowable only when the travel has received prior approval of the awarding agency.Each separate foreign trip must receive such approval.For purposes of this provision, "foreign travel"includes any travel outside Canada,Mexico,the United States,and any United States territories and possessions.However,the term"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. • http://www.whitehouse.gov/omb/circulars_aI 22_2004/ 7/20/2011 allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /2011 §4.12 Termination by Mutual Agreement. This contract may be terminated in whole or in part, prior to the completion of contract project activities, when both parties agree that continuation is not feasible or would not produce beneficial results commensurate with the further expenditure of funds. The parties must agree on the termination conditions, including effective date and the portion to be terminated. The Grantee will not incur new obligations for the terminated portion after the effective date, and will cancel as many outstanding obligations as possible. The Department will make funds available to the Grantee to pay for allowable expenses incurred before the effective date of termination. §4.13 Termination for Cause. In the event of a default or violation of the terms of this contract by the Grantee or failure to use the grant for only those purposes set forth, the Department may take the following actions (which are additional to other default remedies specified elsewhere in this contract): (a) Suspension. After notice to the Grantee, suspend the contract and withhold any further payment or prohibit the Grantee from incurring additional obligations of grant funds, pending corrective action by the Grantee or a decision to terminate. (b) Termination. Terminate the contract in whole, or in part, at any time before the date of completion, whenever it is determined that the Grantee has failed to comply with the terms and conditions of the contract. The Department will promptly notify the Grantee in writing of the determination and the reasons for the termination, together with the effective date. Payments made to the Grantee or recoveries by the Department under contracts terminated for cause will be in accord with the legal rights and liabilities of the parties. Payments and recoveries may include, but are not limited to,.payments allowed for costs determined to be in compliance with the terms of this contract up to the date of termination. The Grantee will return to the Department all unencumbered funds. Further, any costs previously paid by the Department which are subsequently determined to be unallowable through audit and closeout procedures may be recovered from present grant funds or deducted from future grants. §4.14 Termination Due to Loss of Funds. This contract will terminate in full or in part, at the discretion of the Department, in the event the Department suffers a loss of funding or termination of the federal funds which permit it to fund this grant. In the event the Department suffers such a loss of funding, the Department will give the Grantee written notice which will set forth the effective date of full or partial termination, or if a change in funding is required, setting forth the change in funding. CDBG—NSP3—City of Omaha-11-NS-04—Page 12 of 21 nding. Grantee's failure to adhere to the performance reporting requirements may (at the CDBG—NSP3—City of Omaha-11-NS-04—Page 10 of 21 mines 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 EOUAL HOUSING R2V. 5/7/08 OPPORTUNITY 1 ncy for audit may judge that any identified material weaknesses do not affect the management of Federal awards and provide a waiver. 32 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 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 action and for Federal agencies and pass-through entities to arrive at a management decision. The following specific information shall be 27 of Health is a major subdivision in the Department of Health and Human Services. 16 airfare to be allowable in such cases. (2)Unless a pattern of avoidance is detected,the Federal Government will generally not question a non-profit organization's determinations that customary standard airfare or other discount airfare is unavailable for specific trips if the non-profit organization can demonstrate either of the following:(a)that such airfare was not available in the specific case;or(b)that it is the non-profit organization's overall practice to make routine use of such airfare. d. Air travel by other than commercial carrier.Costs of travel by non-profit organization-owned,-leased.or-chartered aircraft include the cost of lease,charter,operation(including personnel costs),maintenance,depreciation, insurance,and other related costs.The portion of such costs that exceeds the cost of allowable commercial air travel,as provided for in subparagraph]c.,is unallowable. e. Foreign travel.Direct charges for foreign travel costs are allowable only when the travel has received prior approval of the awarding agency.Each separate foreign trip must receive such approval.For purposes of this provision, "foreign travel"includes any travel outside Canada,Mexico,the United States,and any United States territories and possessions.However,the term"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. • http://www.whitehouse.gov/omb/circulars_aI 22_2004/ 7/20/2011 allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /2011 • §4.15 State of Nebraska Non-Liability/Hold Harmless. The Grantee will hold the State of Nebraska and the Department harmless from any and all claims, demands, and actions based upon or arising out of any services performed by the Grantee itself, or by their officials, officers, employees, agents, or associates under this contract. §4.16 Entire Agreement, Binding Effect, and Counterparts. This instrument, along with any attachments, the approved grant Application, and those items incorporated by reference, contain the entire agreement between the parties. Any statements', inducements, or promises not contained therein will not be binding upon the parties. This agreement will be binding upon, and will inure to the benefit of, the successors, assigns, and legal representatives of the parties. This agreement, or any amendment of this agreement, may be signed in any number of counterparts, each of which will be an original, but all of which taken together will constitute one agreement (or amendment, as the case may be). §4.17 Governing Law. • This agreement shall be governed by; construed according to the laws and regulations of; and subject to the jurisdiction of; the State of Nebraska. §4.18 Verification of Work Eligibility Status For New Employees. The Grantee 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. In this context, "new employees" means employees hired on or after the effective date of this contract. 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. This contractual obligation to verify work eligibility status for new employees physically performing services within the State of Nebraska also applies to any and all subcontractors utilized by the Grantee in performing this contract. The Grantee will be responsible to the Department for enforcing this requirement with Grantee's subcontractors. A failure by the Grantee to adhere to these requirements is violative of the statutory requirements in Neb. Rev. Stat. §4-114 and as such will be deemed a substantial CDBG—NSP3—City of Omaha-11-NS-04—Page 13 of 21 • ve date of full or partial termination, or if a change in funding is required, setting forth the change in funding. CDBG—NSP3—City of Omaha-11-NS-04—Page 12 of 21 nding. Grantee's failure to adhere to the performance reporting requirements may (at the CDBG—NSP3—City of Omaha-11-NS-04—Page 10 of 21 mines 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 EOUAL HOUSING R2V. 5/7/08 OPPORTUNITY 1 ncy for audit may judge that any identified material weaknesses do not affect the management of Federal awards and provide a waiver. 32 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 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 action and for Federal agencies and pass-through entities to arrive at a management decision. The following specific information shall be 27 of Health is a major subdivision in the Department of Health and Human Services. 16 airfare to be allowable in such cases. (2)Unless a pattern of avoidance is detected,the Federal Government will generally not question a non-profit organization's determinations that customary standard airfare or other discount airfare is unavailable for specific trips if the non-profit organization can demonstrate either of the following:(a)that such airfare was not available in the specific case;or(b)that it is the non-profit organization's overall practice to make routine use of such airfare. d. Air travel by other than commercial carrier.Costs of travel by non-profit organization-owned,-leased.or-chartered aircraft include the cost of lease,charter,operation(including personnel costs),maintenance,depreciation, insurance,and other related costs.The portion of such costs that exceeds the cost of allowable commercial air travel,as provided for in subparagraph]c.,is unallowable. e. Foreign travel.Direct charges for foreign travel costs are allowable only when the travel has received prior approval of the awarding agency.Each separate foreign trip must receive such approval.For purposes of this provision, "foreign travel"includes any travel outside Canada,Mexico,the United States,and any United States territories and possessions.However,the term"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. • http://www.whitehouse.gov/omb/circulars_aI 22_2004/ 7/20/2011 allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /2011 1 breach of this contract which could result in the Department declaring Grantee to be in default on the contract. §4.19 Verification of Lawful Presence for Public Benefits Eligibility (as required of applicants benefited by this contract). • The Department of Economic Development is prohibited by state law (Neb. Rev. Stat. §4-108) from providing public benefits to a person not lawfully present in the United States. Public benefits are statutorily defined broadly (see Neb. Rev Stat. §4-109), with some exemptions from the verification of lawful presence requirement set forth in Neb. Rev Stat. §4-110. For the purposes of this contract, the Department has determined the Grantee is, in the performance of Grantee's contractual duties, providing public benefits to individuals or households under the statutory definition of public benefits. Consequently, pursuant to this contract and Neb. Rev. Stat. §§4-108 through 4-114, the Grantee shall have each applicant for public benefits under this contract complete the United States Citizenship Attestation Form, available on the State of Nebraska Department of Administrative Services website at www.das.state.ne.us. The attestation form is also reproduced on a following page of this contract. Such form serves as the applicant's attestation that he or she is a U.S. citizen or a qualified alien under the federal Immigration and Nationality Act, 8 U.S.C. 1101 et seq. (as such federal statute existed on January 1, 2009, or as it may be subsequently amended). If the applicant attests they are a qualified alien, Grantee shall verify the applicant's lawful presence in the United States using the Systematic Alien Verification for Entitlements (SAVE) Program. Grantee shall: 1. retain the attestation form, and retain any additional verification documentation required because the applicant attested they were a qualified alien. 2. provide such attestation form and other documentation (or copies thereof) to the Department of Economic Development upon the request of such Department. 3. maintain aggregate records for the duration of the contract showing: (a) the number of applicants for public benefits under this contract; and, (b) the number of applicants rejected pursuant to the lawful presence requirement (which is the subject matter of the procedural, attestation, and verification requirements set forth in the Nebraska statutes and contractual provisions above). 4. provide a summary report to the Department of Economic Development, no later than December 31st each calendar year, reflecting data for such calendar year (or portion of such year when there is not a full, calendar year of activity under CDBG—NSP3—City of Omaha-11-NS-04—Page 14 of 21 CDBG—NSP3—City of Omaha-11-NS-04—Page 12 of 21 nding. Grantee's failure to adhere to the performance reporting requirements may (at the CDBG—NSP3—City of Omaha-11-NS-04—Page 10 of 21 mines 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 EOUAL HOUSING R2V. 5/7/08 OPPORTUNITY 1 ncy for audit may judge that any identified material weaknesses do not affect the management of Federal awards and provide a waiver. 32 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 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 action and for Federal agencies and pass-through entities to arrive at a management decision. The following specific information shall be 27 of Health is a major subdivision in the Department of Health and Human Services. 16 airfare to be allowable in such cases. (2)Unless a pattern of avoidance is detected,the Federal Government will generally not question a non-profit organization's determinations that customary standard airfare or other discount airfare is unavailable for specific trips if the non-profit organization can demonstrate either of the following:(a)that such airfare was not available in the specific case;or(b)that it is the non-profit organization's overall practice to make routine use of such airfare. d. Air travel by other than commercial carrier.Costs of travel by non-profit organization-owned,-leased.or-chartered aircraft include the cost of lease,charter,operation(including personnel costs),maintenance,depreciation, insurance,and other related costs.The portion of such costs that exceeds the cost of allowable commercial air travel,as provided for in subparagraph]c.,is unallowable. e. Foreign travel.Direct charges for foreign travel costs are allowable only when the travel has received prior approval of the awarding agency.Each separate foreign trip must receive such approval.For purposes of this provision, "foreign travel"includes any travel outside Canada,Mexico,the United States,and any United States territories and possessions.However,the term"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. • http://www.whitehouse.gov/omb/circulars_aI 22_2004/ 7/20/2011 allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /2011 5 this contract), so as to allow the Department to fulfill its annual reporting obligation to the Nebraska Legislature concerning these "lawful presence" requirements. The Department's annual report to the Nebraska Legislature is due January 31st each year. PART V: COMPLIANCE WITH APPLICABLE LAWS AND REGULATIONS. The Grantee agrees the NSP3 and the CDBG program, and with the provisions of the Department's CDBG Application Guidelines applicable to the Project, and with all federal (and state) laws, regulations, and executive orders applicable to the NSP3-assisted project, including, but not limited to: • National Environmental Policy Act of 1969 and regulations at 24 C.F.R. Part 58. • The Davis-Bacon Act (and related acts). • Section 3 of the Housing and Urban Development Act of 1968. • The Architectural Barriers Act of 1968 and the Americans with Disabilities Act. ACCEPTANCE PROVISIONS. The parties acknowledge they have read and understand this contract and agree to its provisions, and that it will be effective on the date when both parties have signed. NEBRASKA DEPARTMENT OF GRANTEE City of Omaha, Nebraska ECONOMIC DEVELOPMENT By: By:or D_esjignee) (Signa(Qi:4•4/c414---'-- (Director Aued Official) t-J�ley/LPP Pi�'�P_ck" r i-We (Typed or PrintedTlame/Title) (Typed or Printed Name/Title) 2rDi '//4 /JD 0/ •) (Date) 47-6006304 (Federal Identification Number) APPENDIX The Appendix is found on several pages following, and contains: • Description of continued affordability requirements applicable to NSP3 housing CDBG—NSP3—City of Omaha-11-NS-04—Page 15 of 21 Program. Grantee shall: 1. retain the attestation form, and retain any additional verification documentation required because the applicant attested they were a qualified alien. 2. provide such attestation form and other documentation (or copies thereof) to the Department of Economic Development upon the request of such Department. 3. maintain aggregate records for the duration of the contract showing: (a) the number of applicants for public benefits under this contract; and, (b) the number of applicants rejected pursuant to the lawful presence requirement (which is the subject matter of the procedural, attestation, and verification requirements set forth in the Nebraska statutes and contractual provisions above). 4. provide a summary report to the Department of Economic Development, no later than December 31st each calendar year, reflecting data for such calendar year (or portion of such year when there is not a full, calendar year of activity under CDBG—NSP3—City of Omaha-11-NS-04—Page 14 of 21 CDBG—NSP3—City of Omaha-11-NS-04—Page 12 of 21 nding. Grantee's failure to adhere to the performance reporting requirements may (at the CDBG—NSP3—City of Omaha-11-NS-04—Page 10 of 21 mines 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 EOUAL HOUSING R2V. 5/7/08 OPPORTUNITY 1 ncy for audit may judge that any identified material weaknesses do not affect the management of Federal awards and provide a waiver. 32 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 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 action and for Federal agencies and pass-through entities to arrive at a management decision. The following specific information shall be 27 of Health is a major subdivision in the Department of Health and Human Services. 16 airfare to be allowable in such cases. (2)Unless a pattern of avoidance is detected,the Federal Government will generally not question a non-profit organization's determinations that customary standard airfare or other discount airfare is unavailable for specific trips if the non-profit organization can demonstrate either of the following:(a)that such airfare was not available in the specific case;or(b)that it is the non-profit organization's overall practice to make routine use of such airfare. d. Air travel by other than commercial carrier.Costs of travel by non-profit organization-owned,-leased.or-chartered aircraft include the cost of lease,charter,operation(including personnel costs),maintenance,depreciation, insurance,and other related costs.The portion of such costs that exceeds the cost of allowable commercial air travel,as provided for in subparagraph]c.,is unallowable. e. Foreign travel.Direct charges for foreign travel costs are allowable only when the travel has received prior approval of the awarding agency.Each separate foreign trip must receive such approval.For purposes of this provision, "foreign travel"includes any travel outside Canada,Mexico,the United States,and any United States territories and possessions.However,the term"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. • http://www.whitehouse.gov/omb/circulars_aI 22_2004/ 7/20/2011 allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /2011 United States Citizenship Attestation Form For the purpose of complying with Neb. Rev. Stat. §§ 4-108 through 4-114, I attest as follows: I am a citizen of the United States. — OR — r I am a qualified alien under the federal Immigration and Nationality Act, my immigration status and alien number are as follows: , and I agree to provide a copy of my USCIS 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 / J^ t�j sr 7 /e (first, middle, last) c SIGNATURE AO, 7f DATE 6 //4/ 2_0 /1 CDBG—NSP3—City of Omaha-11-NS-04—Page 16 of 21 Z $ - • Nebraska Department of Economic Development (NDED) Community Development Block Grant Neighborhood Stabilization Program 1 (CDBG NSP3) Description of Continued Affordability The State of Nebraska description of how the Nebraska Department of Economic Development (NDED) will ensure continued affordability for purposes of implementing the Community Development Block Grant Neighborhood Stabilization Program is as follows: NSP3-assisted housing must meet the following affordability requirements: Rental Housing a. Periods of Affordability. The NSP3-assisted units must meet the affordability requirements for not less than the applicable period specified in the following table, beginning after project completion. The affordability requirements apply without regard to the term of any loan or mortgage or the transfer of ownership. They must be imposed by deed restrictions, covenants running with the land, or other mechanisms approved by the Nebraska Department of Economic Development (NDED), except that the affordability restrictions may terminate upon foreclosure or transfer in lieu of foreclosure. The NDED NSP3 grantee may use purchase options, rights of first refusal or other preemptive rights to purchase the housing before foreclosure or deed in lieu of foreclosure to preserve affordability. The affordability restrictions shall be revived according to the original terms if, during the original affordability period, the owner of record before the foreclosure, or deed in lieu of foreclosure, or any entity that includes the former owner or those with whom the former owner has or had family or business ties, obtains an ownership interest in the project or property. Rental Housing Activity Minimum period of affordability in years Rehabilitation or acquisition of existing 5 housing per unit amount of NSP3 funds: Under $15,000 $15,000 to $40,000 10 Over$40,000 or rehabilitation involving 15 refinancing New Construction or acquisition of newly 20 constructed housing Homeownership a. Acquisition with or without rehabilitation. Housing that is for acquisition by a family must meet the affordability requirements of this paragraph (a). 1. The housing must be single-family housing. 2. The housing must be modest housing as follows: i. In the case of acquisition of newly constructed housing or standard housing, the housing has a purchase price for the type of single family housing that does not • exceed 95 percent of the median purchase price for the area, as described in paragraph (a)(2)(iii) of this section. CDBG—NSP3—City of Omaha-11-NS-04—Page 17 of 21 calendar year of activity under CDBG—NSP3—City of Omaha-11-NS-04—Page 14 of 21 CDBG—NSP3—City of Omaha-11-NS-04—Page 12 of 21 nding. Grantee's failure to adhere to the performance reporting requirements may (at the CDBG—NSP3—City of Omaha-11-NS-04—Page 10 of 21 mines 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 EOUAL HOUSING R2V. 5/7/08 OPPORTUNITY 1 ncy for audit may judge that any identified material weaknesses do not affect the management of Federal awards and provide a waiver. 32 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 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 action and for Federal agencies and pass-through entities to arrive at a management decision. The following specific information shall be 27 of Health is a major subdivision in the Department of Health and Human Services. 16 airfare to be allowable in such cases. (2)Unless a pattern of avoidance is detected,the Federal Government will generally not question a non-profit organization's determinations that customary standard airfare or other discount airfare is unavailable for specific trips if the non-profit organization can demonstrate either of the following:(a)that such airfare was not available in the specific case;or(b)that it is the non-profit organization's overall practice to make routine use of such airfare. d. Air travel by other than commercial carrier.Costs of travel by non-profit organization-owned,-leased.or-chartered aircraft include the cost of lease,charter,operation(including personnel costs),maintenance,depreciation, insurance,and other related costs.The portion of such costs that exceeds the cost of allowable commercial air travel,as provided for in subparagraph]c.,is unallowable. e. Foreign travel.Direct charges for foreign travel costs are allowable only when the travel has received prior approval of the awarding agency.Each separate foreign trip must receive such approval.For purposes of this provision, "foreign travel"includes any travel outside Canada,Mexico,the United States,and any United States territories and possessions.However,the term"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. • http://www.whitehouse.gov/omb/circulars_aI 22_2004/ 7/20/2011 allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /2011 ii. In the case of acquisition with rehabilitation, the housing has an estimated value after rehabilitation that does not exceed 95 percent of the median purchase price for the area, described in paragraph (a)(2)(iii) of this section. iii. If a NDED NSP3 grantee intends to use NSP3 funds for homebuyer assistance or for rehabilitation of owner-occupied single-family properties, the NDED NSP3 grantee must use the Single Family Mortgage Limits under Section 203(b) of the National Housing Act (12 U.S.C. 1709(b)) (which may be obtained from the HUD Field Office). 3. The housing must be acquired by a homebuyer whose family qualifies as a income qualified family and the housing must be the principal residence of the family throughout the period described in paragraph (a)(4) of this section. 4. Periods of affordability. The NSP3-assisted housing must meet the affordability requirements for not less than the applicable period specified in the following table, beginning after project completion. The per unit amount of NSP3 funds and the affordability period that they trigger are described more fully in paragraphs (a)(5)(i) (resale) and (ii) (recapture) of this section. Homeownership assistance NSP3 Minimum period of affordability in years amount per-unit Under $15,000 5 $1.5,000 to $40,000 10 • Over $40,000 15 5. Resale and recapture. To ensure affordability, the NDED NSP3-grantee must impose either resale or recapture requirements, at its option. The NDED NSP3-grantee must establish the resale or recapture requirements that comply with the standards of this section and set forth the requirements in its program guidelines. NDED must determine that they are appropriate. i. Resale. Resale requirements must ensure, if the housing does not continue to be the principal residence of the family for the duration of the period of affordability, that the housing is made available for subsequent purchase only to a buyer who is an income-qualified family and will use the property as its principal residence. The resale requirement must also ensure that the price at resale provides the original NSP3- assisted owner a fair return on investment (including the homeowner's investment and any capital improvement) and ensure that the housing will remain affordable to a reasonable range of income eligible homebuyers as defined by the CDBG NSP3. The period of affordability is based on the total amount of NSP3 funds invested in the housing. A. Except as provided in paragraph (a)(5)(i)(B) of this section, deed restrictions, covenants running with the land, or other similar mechanisms must be used as the mechanism to impose the resale requirements. The affordability restrictions may terminate upon occurrence of any of the following termination events: foreclosure, transfer in lieu of foreclosure or assignment of an FHA insured mortgage to HUD. The NDED NSP3-grantee may use purchase options, rights of first refusal or other preemptive rights to purchase the housing before foreclosure to preserve affordability. The affordability restrictions shall be revived according to the original terms if, during the original affordability period, the owner of record before the termination event, obtains an ownership interest in the housing. B. Certain housing may be presumed to meet the resale restrictions (i.e., the housing will be available and affordable to a reasonable range of income-eligible CDBG—NSP3—City of Omaha-11-NS-04—Page 18 of 21 significant impact on a Federal program or have not been corrected. • (3) Federal programs not recently audited as major programs 31 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 action and for Federal agencies and pass-through entities to arrive at a management decision. The following specific information shall be 27 of Health is a major subdivision in the Department of Health and Human Services. 16 airfare to be allowable in such cases. (2)Unless a pattern of avoidance is detected,the Federal Government will generally not question a non-profit organization's determinations that customary standard airfare or other discount airfare is unavailable for specific trips if the non-profit organization can demonstrate either of the following:(a)that such airfare was not available in the specific case;or(b)that it is the non-profit organization's overall practice to make routine use of such airfare. d. Air travel by other than commercial carrier.Costs of travel by non-profit organization-owned,-leased.or-chartered aircraft include the cost of lease,charter,operation(including personnel costs),maintenance,depreciation, insurance,and other related costs.The portion of such costs that exceeds the cost of allowable commercial air travel,as provided for in subparagraph]c.,is unallowable. e. Foreign travel.Direct charges for foreign travel costs are allowable only when the travel has received prior approval of the awarding agency.Each separate foreign trip must receive such approval.For purposes of this provision, "foreign travel"includes any travel outside Canada,Mexico,the United States,and any United States territories and possessions.However,the term"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. • http://www.whitehouse.gov/omb/circulars_aI 22_2004/ 7/20/2011 allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /2011 homebuyers; an income-eligible homebuyers will occupy the housing as the family's principal residence; and the original owner will be afforded a fair return on investment) during the period of affordability without the imposition of enforcement mechanisms by the NDED NSP3-grantee. The presumption must be based upon a market analysis of the neighborhood in which the housing is located. The market analysis must include an evaluation of the location and characteristics of the housing and residents in the neighborhood (e.g., sale prices, age and amenities of the housing stock, incomes of residents, percentage of owner-occupants) in relation to housing and incomes in the housing market area. An analysis of the current and projected incomes of neighborhood residents for an average period of affordability for homebuyers in the neighborhood must support the conclusion that a reasonable range of low-income families will continue to qualify for mortgage financing. For example, an analysis shows that the housing is modestly priced within the housing market area and that families with incomes of 65% to 120% of area median can afford monthly payments under average FHA terms without other government assistance and housing will remain affordable at least during the next five to seven years compared to other housing in the market area; the size and amenities of the housing are modest and • substantial rehabilitation will not significantly increase the market value; the neighborhood has housing that is not currently owned by the occupants, but the NDED-NSP3 grantee is encouraging homeownership in the neighborhood by providing homeownership assistance and by making improvements to the streets, sidewalks, and other public facilities and services. If a NDED NSP3-grantee in preparing a neighborhood revitalization strategy under 24 CFR Part 91.215(e)(2) of its consolidated plan or Empowerment Zone or Enterprise Community application under 24 CFR part 597 has incorporated the type of market data described above, that submission may serve as the required analysis under this section. If the NDED NSP3-grantee continues to provide homeownership assistance for housing in the neighborhood, it must periodically update the market analysis to verify the original presumption of continued affordability. ii. Recapture. Recapture provisions must ensure that the NDED NSP3-grantee recoups all or a portion of the NSP3 assistance to the homebuyers, if the housing does not continue to be the principal residence of the family for the duration of the period of affordability. The NDED NSP3-grantee may structure its recapture provisions based on its program design and market conditions. The period of affordability is based upon the total amount of NSP3 funds subject to recapture described in paragraph (a)(5)(ii)(A)(5) of this section. A. The following options for recapture requirements are acceptable to NDED. The NDED NSP3-grantee may adopt, modify or develop its own recapture requirements for NDED approval. In establishing its recapture requirements, the NDED NSP3-grantee is subject to the limitation that when the recapture requirement is triggered by a sale (voluntary or involuntary) of the housing unit, and there are no net proceeds or the net proceeds are insufficient to repay the NSP3 investment due, the NDED NSP3-grantee can only recapture the net proceeds, if any. The net proceeds are the sales price minus superior loan repayment (other than NSP3 funds) and any closing costs. 1. Recapture entire amount. The NDED NSP3-grantee may recapture the entire amount of the NSP3 investment from the homeowner. 2. Reduction during affordability period. The NDED NSP3-grantee may reduce the NSP3 investment amount to be recaptured on a prorata CDBG—NSP3—City of Omaha-11-NS-04—Page 19 of 21 29 action and for Federal agencies and pass-through entities to arrive at a management decision. The following specific information shall be 27 of Health is a major subdivision in the Department of Health and Human Services. 16 airfare to be allowable in such cases. (2)Unless a pattern of avoidance is detected,the Federal Government will generally not question a non-profit organization's determinations that customary standard airfare or other discount airfare is unavailable for specific trips if the non-profit organization can demonstrate either of the following:(a)that such airfare was not available in the specific case;or(b)that it is the non-profit organization's overall practice to make routine use of such airfare. d. Air travel by other than commercial carrier.Costs of travel by non-profit organization-owned,-leased.or-chartered aircraft include the cost of lease,charter,operation(including personnel costs),maintenance,depreciation, insurance,and other related costs.The portion of such costs that exceeds the cost of allowable commercial air travel,as provided for in subparagraph]c.,is unallowable. e. Foreign travel.Direct charges for foreign travel costs are allowable only when the travel has received prior approval of the awarding agency.Each separate foreign trip must receive such approval.For purposes of this provision, "foreign travel"includes any travel outside Canada,Mexico,the United States,and any United States territories and possessions.However,the term"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. • http://www.whitehouse.gov/omb/circulars_aI 22_2004/ 7/20/2011 allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /2011 basis for the time the homeowner has owned and occupied the housing measured against the required affordability period. 3. Shared net proceeds. If the net proceeds are not sufficient to recapture the full NSP3 investment (or a reduced amount as provided for in paragraph (a)(5)(ii)(A)(2) of this section) plus enable the homeowner to recover the amount of the homeowner's downpayment and any capital improvement investment made by the owner since purchase, the NDED NSP3-grantee may share the net proceeds. The net proceeds are the sales price minus loan repayment (other than NSP3 funds) and closing costs. The net proceeds may be divided proportionally as set forth in the following mathematical formulas: NSP3 Investment/NSP3 X Net Proceeds = NSP3 amount to Investment + homeowner be recaptured investment Homeowner Investment X Net Proceeds = Amount to /NSP3 Investment + homeowner homeowner investment 4. Owner investment returned first. The NDED NSP3-grantee may permit the homebuyer to recover the homebuyer's entire investment (downpayment and capital improvements made by the owner since purchase) before recapturing the NSP3 investment. 5. Amount subject to recapture. The NSP3 investment that is subject to recapture is based on the amount of NSP3 assistance that enabled the homebuyer to buy the dwelling unit. This includes any NSP3 assistance that reduced the purchase price from fair market value to an affordable price, but excludes the amount between the cost of producing the unit and the market value of the property (i.e., the development subsidy). The recaptured funds must be used to carry out NSP3-eligible activities in accordance with the NSP3 requirements. If the NSP3 assistance is only used for the development subsidy and therefore not subject to recapture, the resale option must be used. 6. Special considerations for single-family properties with more than one unit. If the NSP3 funds are only used to assist an income qualified homebuyer to acquire one unit in single-family housing containing more than one unit and the assisted unit will be the principal residence of the homebuyer, the affordability requirements of this section apply only to the assisted unit. If NSP3 funds are also used to assist the income qualified homebuyer to acquire one or more of the rental units in the single-family housing, the affordability requirements of Rental Housing apply to assisted rental units, except that the NDED NSP3- grantee may impose resale or recapture restrictions on all assisted units (owner-occupied and rental units) in the single family housing. If resale restrictions are used, the affordability requirements on all assisted units continue for the period of affordability. If recapture restrictions are used, the affordability requirements on the assisted rental units may be terminated, at the discretion of the NDED NSP3- grantee, upon recapture of the NSP3 investment. (If NSP3 funds are used to assist only the rental units in such a property then the CDBG—NSP3—City of Omaha-11-NS-04—Page 20 of 21 ntary) of the housing unit, and there are no net proceeds or the net proceeds are insufficient to repay the NSP3 investment due, the NDED NSP3-grantee can only recapture the net proceeds, if any. The net proceeds are the sales price minus superior loan repayment (other than NSP3 funds) and any closing costs. 1. Recapture entire amount. The NDED NSP3-grantee may recapture the entire amount of the NSP3 investment from the homeowner. 2. Reduction during affordability period. The NDED NSP3-grantee may reduce the NSP3 investment amount to be recaptured on a prorata CDBG—NSP3—City of Omaha-11-NS-04—Page 19 of 21 29 action and for Federal agencies and pass-through entities to arrive at a management decision. The following specific information shall be 27 of Health is a major subdivision in the Department of Health and Human Services. 16 airfare to be allowable in such cases. (2)Unless a pattern of avoidance is detected,the Federal Government will generally not question a non-profit organization's determinations that customary standard airfare or other discount airfare is unavailable for specific trips if the non-profit organization can demonstrate either of the following:(a)that such airfare was not available in the specific case;or(b)that it is the non-profit organization's overall practice to make routine use of such airfare. d. Air travel by other than commercial carrier.Costs of travel by non-profit organization-owned,-leased.or-chartered aircraft include the cost of lease,charter,operation(including personnel costs),maintenance,depreciation, insurance,and other related costs.The portion of such costs that exceeds the cost of allowable commercial air travel,as provided for in subparagraph]c.,is unallowable. e. Foreign travel.Direct charges for foreign travel costs are allowable only when the travel has received prior approval of the awarding agency.Each separate foreign trip must receive such approval.For purposes of this provision, "foreign travel"includes any travel outside Canada,Mexico,the United States,and any United States territories and possessions.However,the term"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. • http://www.whitehouse.gov/omb/circulars_aI 22_2004/ 7/20/2011 allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /2011 requirements of rental housing affordability requirements would apply ' and the owner-occupied unit would not be subject to the income targeting or affordability provisions of homeownership housing affordability requirements.) 7. Lease-purchase. NSP3 funds may be used to assist homebuyers through lease-purchase programs for existing housing and for housing to be constructed. The housing must be purchased by a homebuyer within 36 months of signing the lease-purchase agreement. The homebuyer must be an income-qualified family at the time the lease- purchase agreement is signed. If NSP3 funds are used to acquire housing that will be resold to a homebuyer through a lease-purchase program, the NSP3 affordability requirements for rental housing shall apply if the housing is not transferred to a homebuyer within forty-two months after project completion. 8. Contract to purchase. If NSP3 funds are used to assist a homebuyer who has entered into a contract to purchase housing to be constructed, the homebuyer must be an income-qualified family at the time the contract is signed. b. Ownership interest. The ownership in the housing assisted under this section must meet the following definition of "homeownership": 1. homeownership means ownership in fee simple title or a 99 year leasehold interest in a one-to four-unit dwelling or in a condominium unit, or equivalent form of ownership approved by NDED. The ownership interest may be subject only to the restrictions on resale required under homeownership (a) ; mortgages, deeds of trust, or other liens or instruments securing debt on the property as approved by the NDED NSP3-grantee; or any other restrictions or encumbrances that do not impair the good and marketable nature of title to the ownership interest. For purposes of the insular areas, homeownership includes leases of 40 years or more. For purposes of housing located on trust or restricted Indian lands, homeownership includes leases of 50 years. The NDED NSP3-grantee must determine whether or not ownership or membership in a cooperative or mutual housing project constitutes homeownership under State law. c. New construction without acquisition. Newly constructed housing that is built on property currently owned by a family which will occupy the housing upon completion, qualifies as affordable housing if it meets the requirements under paragraph (a) of this section. This description is an adoption of the HOME program standards applicable provisions at 24 CFR 92.252 (e) and 92.254. Source: The NSP3 Action Plan, prepared as a substantial amendment to the State of Nebraska's 2010 Annual Action Plan for Housing and Community Development Programs. CDBG—NSP3—City of Omaha-11-NS-04—Page 21 of 21 ions are used, the affordability requirements on all assisted units continue for the period of affordability. If recapture restrictions are used, the affordability requirements on the assisted rental units may be terminated, at the discretion of the NDED NSP3- grantee, upon recapture of the NSP3 investment. (If NSP3 funds are used to assist only the rental units in such a property then the CDBG—NSP3—City of Omaha-11-NS-04—Page 20 of 21 ntary) of the housing unit, and there are no net proceeds or the net proceeds are insufficient to repay the NSP3 investment due, the NDED NSP3-grantee can only recapture the net proceeds, if any. The net proceeds are the sales price minus superior loan repayment (other than NSP3 funds) and any closing costs. 1. Recapture entire amount. The NDED NSP3-grantee may recapture the entire amount of the NSP3 investment from the homeowner. 2. Reduction during affordability period. The NDED NSP3-grantee may reduce the NSP3 investment amount to be recaptured on a prorata CDBG—NSP3—City of Omaha-11-NS-04—Page 19 of 21 29 action and for Federal agencies and pass-through entities to arrive at a management decision. The following specific information shall be 27 of Health is a major subdivision in the Department of Health and Human Services. 16 airfare to be allowable in such cases. (2)Unless a pattern of avoidance is detected,the Federal Government will generally not question a non-profit organization's determinations that customary standard airfare or other discount airfare is unavailable for specific trips if the non-profit organization can demonstrate either of the following:(a)that such airfare was not available in the specific case;or(b)that it is the non-profit organization's overall practice to make routine use of such airfare. d. Air travel by other than commercial carrier.Costs of travel by non-profit organization-owned,-leased.or-chartered aircraft include the cost of lease,charter,operation(including personnel costs),maintenance,depreciation, insurance,and other related costs.The portion of such costs that exceeds the cost of allowable commercial air travel,as provided for in subparagraph]c.,is unallowable. e. Foreign travel.Direct charges for foreign travel costs are allowable only when the travel has received prior approval of the awarding agency.Each separate foreign trip must receive such approval.For purposes of this provision, "foreign travel"includes any travel outside Canada,Mexico,the United States,and any United States territories and possessions.However,the term"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. • http://www.whitehouse.gov/omb/circulars_aI 22_2004/ 7/20/2011 allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /2011 • ATTACHMENT 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 OPPORTUNITY Revised and approved 7/12/2011 ted, at the discretion of the NDED NSP3- grantee, upon recapture of the NSP3 investment. (If NSP3 funds are used to assist only the rental units in such a property then the CDBG—NSP3—City of Omaha-11-NS-04—Page 20 of 21 ntary) of the housing unit, and there are no net proceeds or the net proceeds are insufficient to repay the NSP3 investment due, the NDED NSP3-grantee can only recapture the net proceeds, if any. The net proceeds are the sales price minus superior loan repayment (other than NSP3 funds) and any closing costs. 1. Recapture entire amount. The NDED NSP3-grantee may recapture the entire amount of the NSP3 investment from the homeowner. 2. Reduction during affordability period. The NDED NSP3-grantee may reduce the NSP3 investment amount to be recaptured on a prorata CDBG—NSP3—City of Omaha-11-NS-04—Page 19 of 21 29 action and for Federal agencies and pass-through entities to arrive at a management decision. The following specific information shall be 27 of Health is a major subdivision in the Department of Health and Human Services. 16 airfare to be allowable in such cases. (2)Unless a pattern of avoidance is detected,the Federal Government will generally not question a non-profit organization's determinations that customary standard airfare or other discount airfare is unavailable for specific trips if the non-profit organization can demonstrate either of the following:(a)that such airfare was not available in the specific case;or(b)that it is the non-profit organization's overall practice to make routine use of such airfare. d. Air travel by other than commercial carrier.Costs of travel by non-profit organization-owned,-leased.or-chartered aircraft include the cost of lease,charter,operation(including personnel costs),maintenance,depreciation, insurance,and other related costs.The portion of such costs that exceeds the cost of allowable commercial air travel,as provided for in subparagraph]c.,is unallowable. e. Foreign travel.Direct charges for foreign travel costs are allowable only when the travel has received prior approval of the awarding agency.Each separate foreign trip must receive such approval.For purposes of this provision, "foreign travel"includes any travel outside Canada,Mexico,the United States,and any United States territories and possessions.However,the term"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. • http://www.whitehouse.gov/omb/circulars_aI 22_2004/ 7/20/2011 allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /2011 4. • ATTACHMENT 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, 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, color, 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 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 recapture of the NSP3 investment. (If NSP3 funds are used to assist only the rental units in such a property then the CDBG—NSP3—City of Omaha-11-NS-04—Page 20 of 21 ntary) of the housing unit, and there are no net proceeds or the net proceeds are insufficient to repay the NSP3 investment due, the NDED NSP3-grantee can only recapture the net proceeds, if any. The net proceeds are the sales price minus superior loan repayment (other than NSP3 funds) and any closing costs. 1. Recapture entire amount. The NDED NSP3-grantee may recapture the entire amount of the NSP3 investment from the homeowner. 2. Reduction during affordability period. The NDED NSP3-grantee may reduce the NSP3 investment amount to be recaptured on a prorata CDBG—NSP3—City of Omaha-11-NS-04—Page 19 of 21 29 action and for Federal agencies and pass-through entities to arrive at a management decision. The following specific information shall be 27 of Health is a major subdivision in the Department of Health and Human Services. 16 airfare to be allowable in such cases. (2)Unless a pattern of avoidance is detected,the Federal Government will generally not question a non-profit organization's determinations that customary standard airfare or other discount airfare is unavailable for specific trips if the non-profit organization can demonstrate either of the following:(a)that such airfare was not available in the specific case;or(b)that it is the non-profit organization's overall practice to make routine use of such airfare. d. Air travel by other than commercial carrier.Costs of travel by non-profit organization-owned,-leased.or-chartered aircraft include the cost of lease,charter,operation(including personnel costs),maintenance,depreciation, insurance,and other related costs.The portion of such costs that exceeds the cost of allowable commercial air travel,as provided for in subparagraph]c.,is unallowable. e. Foreign travel.Direct charges for foreign travel costs are allowable only when the travel has received prior approval of the awarding agency.Each separate foreign trip must receive such approval.For purposes of this provision, "foreign travel"includes any travel outside Canada,Mexico,the United States,and any United States territories and possessions.However,the term"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. • http://www.whitehouse.gov/omb/circulars_aI 22_2004/ 7/20/2011 allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /2011 • • 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) fied applicants will receive consideration for employment without regard to race, religion, color, 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 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 recapture of the NSP3 investment. (If NSP3 funds are used to assist only the rental units in such a property then the CDBG—NSP3—City of Omaha-11-NS-04—Page 20 of 21 ntary) of the housing unit, and there are no net proceeds or the net proceeds are insufficient to repay the NSP3 investment due, the NDED NSP3-grantee can only recapture the net proceeds, if any. The net proceeds are the sales price minus superior loan repayment (other than NSP3 funds) and any closing costs. 1. Recapture entire amount. The NDED NSP3-grantee may recapture the entire amount of the NSP3 investment from the homeowner. 2. Reduction during affordability period. The NDED NSP3-grantee may reduce the NSP3 investment amount to be recaptured on a prorata CDBG—NSP3—City of Omaha-11-NS-04—Page 19 of 21 29 action and for Federal agencies and pass-through entities to arrive at a management decision. The following specific information shall be 27 of Health is a major subdivision in the Department of Health and Human Services. 16 airfare to be allowable in such cases. (2)Unless a pattern of avoidance is detected,the Federal Government will generally not question a non-profit organization's determinations that customary standard airfare or other discount airfare is unavailable for specific trips if the non-profit organization can demonstrate either of the following:(a)that such airfare was not available in the specific case;or(b)that it is the non-profit organization's overall practice to make routine use of such airfare. d. Air travel by other than commercial carrier.Costs of travel by non-profit organization-owned,-leased.or-chartered aircraft include the cost of lease,charter,operation(including personnel costs),maintenance,depreciation, insurance,and other related costs.The portion of such costs that exceeds the cost of allowable commercial air travel,as provided for in subparagraph]c.,is unallowable. e. Foreign travel.Direct charges for foreign travel costs are allowable only when the travel has received prior approval of the awarding agency.Each separate foreign trip must receive such approval.For purposes of this provision, "foreign travel"includes any travel outside Canada,Mexico,the United States,and any United States territories and possessions.However,the term"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. • http://www.whitehouse.gov/omb/circulars_aI 22_2004/ 7/20/2011 allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /2011 ATTACHMENT 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. ng recapture of the NSP3 investment. (If NSP3 funds are used to assist only the rental units in such a property then the CDBG—NSP3—City of Omaha-11-NS-04—Page 20 of 21 ntary) of the housing unit, and there are no net proceeds or the net proceeds are insufficient to repay the NSP3 investment due, the NDED NSP3-grantee can only recapture the net proceeds, if any. The net proceeds are the sales price minus superior loan repayment (other than NSP3 funds) and any closing costs. 1. Recapture entire amount. The NDED NSP3-grantee may recapture the entire amount of the NSP3 investment from the homeowner. 2. Reduction during affordability period. The NDED NSP3-grantee may reduce the NSP3 investment amount to be recaptured on a prorata CDBG—NSP3—City of Omaha-11-NS-04—Page 19 of 21 29 action and for Federal agencies and pass-through entities to arrive at a management decision. The following specific information shall be 27 of Health is a major subdivision in the Department of Health and Human Services. 16 airfare to be allowable in such cases. (2)Unless a pattern of avoidance is detected,the Federal Government will generally not question a non-profit organization's determinations that customary standard airfare or other discount airfare is unavailable for specific trips if the non-profit organization can demonstrate either of the following:(a)that such airfare was not available in the specific case;or(b)that it is the non-profit organization's overall practice to make routine use of such airfare. d. Air travel by other than commercial carrier.Costs of travel by non-profit organization-owned,-leased.or-chartered aircraft include the cost of lease,charter,operation(including personnel costs),maintenance,depreciation, insurance,and other related costs.The portion of such costs that exceeds the cost of allowable commercial air travel,as provided for in subparagraph]c.,is unallowable. e. Foreign travel.Direct charges for foreign travel costs are allowable only when the travel has received prior approval of the awarding agency.Each separate foreign trip must receive such approval.For purposes of this provision, "foreign travel"includes any travel outside Canada,Mexico,the United States,and any United States territories and possessions.However,the term"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. • http://www.whitehouse.gov/omb/circulars_aI 22_2004/ 7/20/2011 allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /2011 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. NSP3—City of Omaha-11-NS-04—Page 20 of 21 ntary) of the housing unit, and there are no net proceeds or the net proceeds are insufficient to repay the NSP3 investment due, the NDED NSP3-grantee can only recapture the net proceeds, if any. The net proceeds are the sales price minus superior loan repayment (other than NSP3 funds) and any closing costs. 1. Recapture entire amount. The NDED NSP3-grantee may recapture the entire amount of the NSP3 investment from the homeowner. 2. Reduction during affordability period. The NDED NSP3-grantee may reduce the NSP3 investment amount to be recaptured on a prorata CDBG—NSP3—City of Omaha-11-NS-04—Page 19 of 21 29 action and for Federal agencies and pass-through entities to arrive at a management decision. The following specific information shall be 27 of Health is a major subdivision in the Department of Health and Human Services. 16 airfare to be allowable in such cases. (2)Unless a pattern of avoidance is detected,the Federal Government will generally not question a non-profit organization's determinations that customary standard airfare or other discount airfare is unavailable for specific trips if the non-profit organization can demonstrate either of the following:(a)that such airfare was not available in the specific case;or(b)that it is the non-profit organization's overall practice to make routine use of such airfare. d. Air travel by other than commercial carrier.Costs of travel by non-profit organization-owned,-leased.or-chartered aircraft include the cost of lease,charter,operation(including personnel costs),maintenance,depreciation, insurance,and other related costs.The portion of such costs that exceeds the cost of allowable commercial air travel,as provided for in subparagraph]c.,is unallowable. e. Foreign travel.Direct charges for foreign travel costs are allowable only when the travel has received prior approval of the awarding agency.Each separate foreign trip must receive such approval.For purposes of this provision, "foreign travel"includes any travel outside Canada,Mexico,the United States,and any United States territories and possessions.However,the term"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. • http://www.whitehouse.gov/omb/circulars_aI 22_2004/ 7/20/2011 allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /2011 ATTACHMENT MINORITY BUSINESS & WOMEN BUSINESS ENTERPRISE PLAN • March 2011 w.HA. F ��04•`,I/,g y� O4,'TeD FEB0'�� 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 rue, complete, and accurate and I understand that this information may be used to verify my lawful presence in the United States. PRINT NAME / J^ t�j sr 7 /e (first, middle, last) c SIGNATURE AO, 7f DATE 6 //4/ 2_0 /1 CDBG—NSP3—City of Omaha-11-NS-04—Page 16 of 21 Z $ - MINORITY BUSINESSWOMEN 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 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. NSP3—City of Omaha-11-NS-04—Page 20 of 21 ntary) of the housing unit, and there are no net proceeds or the net proceeds are insufficient to repay the NSP3 investment due, the NDED NSP3-grantee can only recapture the net proceeds, if any. The net proceeds are the sales price minus superior loan repayment (other than NSP3 funds) and any closing costs. 1. Recapture entire amount. The NDED NSP3-grantee may recapture the entire amount of the NSP3 investment from the homeowner. 2. Reduction during affordability period. The NDED NSP3-grantee may reduce the NSP3 investment amount to be recaptured on a prorata CDBG—NSP3—City of Omaha-11-NS-04—Page 19 of 21 29 action and for Federal agencies and pass-through entities to arrive at a management decision. The following specific information shall be 27 of Health is a major subdivision in the Department of Health and Human Services. 16 airfare to be allowable in such cases. (2)Unless a pattern of avoidance is detected,the Federal Government will generally not question a non-profit organization's determinations that customary standard airfare or other discount airfare is unavailable for specific trips if the non-profit organization can demonstrate either of the following:(a)that such airfare was not available in the specific case;or(b)that it is the non-profit organization's overall practice to make routine use of such airfare. d. Air travel by other than commercial carrier.Costs of travel by non-profit organization-owned,-leased.or-chartered aircraft include the cost of lease,charter,operation(including personnel costs),maintenance,depreciation, insurance,and other related costs.The portion of such costs that exceeds the cost of allowable commercial air travel,as provided for in subparagraph]c.,is unallowable. e. Foreign travel.Direct charges for foreign travel costs are allowable only when the travel has received prior approval of the awarding agency.Each separate foreign trip must receive such approval.For purposes of this provision, "foreign travel"includes any travel outside Canada,Mexico,the United States,and any United States territories and possessions.However,the term"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. • http://www.whitehouse.gov/omb/circulars_aI 22_2004/ 7/20/2011 allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /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 ty of Omaha-11-NS-04—Page 16 of 21 Z $ - 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 444-5408 Housing and Community Development Division City Planning 1819 Farnam Street, Room 1111 Omaha,NE 68183 Edward Dantzler, Development Section Manager 444-5530 • Human Rights and Relations Department Contract Compliance 1819 Farnam Street, Room 502 Omaha,NE 68183 Tom Marfisi, Director 444-5050 Minority Economic Development Greater Omaha Chamber of Commerce 1301 Harney Street Omaha,NE 68102 Winsley Duran, Director 345-5000 Nebraska Department of Economic Development Small Business (MBE/WBE/DBE) Assistance 301 Centennial Mall South Lincoln,NE 68509-4666 Steve Williams, Business Assistance Manager 471-3111 4 Reviewed and approved 3/28/2011 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 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. NSP3—City of Omaha-11-NS-04—Page 20 of 21 ntary) of the housing unit, and there are no net proceeds or the net proceeds are insufficient to repay the NSP3 investment due, the NDED NSP3-grantee can only recapture the net proceeds, if any. The net proceeds are the sales price minus superior loan repayment (other than NSP3 funds) and any closing costs. 1. Recapture entire amount. The NDED NSP3-grantee may recapture the entire amount of the NSP3 investment from the homeowner. 2. Reduction during affordability period. The NDED NSP3-grantee may reduce the NSP3 investment amount to be recaptured on a prorata CDBG—NSP3—City of Omaha-11-NS-04—Page 19 of 21 29 action and for Federal agencies and pass-through entities to arrive at a management decision. The following specific information shall be 27 of Health is a major subdivision in the Department of Health and Human Services. 16 airfare to be allowable in such cases. (2)Unless a pattern of avoidance is detected,the Federal Government will generally not question a non-profit organization's determinations that customary standard airfare or other discount airfare is unavailable for specific trips if the non-profit organization can demonstrate either of the following:(a)that such airfare was not available in the specific case;or(b)that it is the non-profit organization's overall practice to make routine use of such airfare. d. Air travel by other than commercial carrier.Costs of travel by non-profit organization-owned,-leased.or-chartered aircraft include the cost of lease,charter,operation(including personnel costs),maintenance,depreciation, insurance,and other related costs.The portion of such costs that exceeds the cost of allowable commercial air travel,as provided for in subparagraph]c.,is unallowable. e. Foreign travel.Direct charges for foreign travel costs are allowable only when the travel has received prior approval of the awarding agency.Each separate foreign trip must receive such approval.For purposes of this provision, "foreign travel"includes any travel outside Canada,Mexico,the United States,and any United States territories and possessions.However,the term"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. • http://www.whitehouse.gov/omb/circulars_aI 22_2004/ 7/20/2011 allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /2011 MBE/WBE FOR GOODS AND SERVICES North Omaha Contractor Alliance 3040 Lake Street Omaha,NE 68111 Preston Love, Jr., Executive Director 402-991-3420 Omaha Small Business Network, Inc. 2505 North 24th Street Omaha,NE 68110 Vicki Wilson Tederman, Executive Director 453-5336 Small Business Administration 10675 Bedford Avenue, Suite 100 Omaha,NE 68134 Kathleen Piper, ADD/MED 221-7205 Urban League of Nebraska, Inc. 3040 Lake Street Omaha,NE 68110 Thomas H. Warren, President/CEO 453-9730 5 Reviewed and approved 3/28/201/ ou 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 ty of Omaha-11-NS-04—Page 16 of 21 Z $ - 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 Omaha,NE 68183 Tom Marfisi, Director 444-5050 Minority Economic Development Greater Omaha Chamber of Commerce 1301 Harney Street Omaha,NE 68102 Winsley Duran, Director 345-5000 Nebraska Department of Economic Development Small Business (MBE/WBE/DBE) Assistance 301 Centennial Mall South Lincoln,NE 68509-4666 Steve Williams, Business Assistance Manager 471-3111 4 Reviewed and approved 3/28/2011 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 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. NSP3—City of Omaha-11-NS-04—Page 20 of 21 ntary) of the housing unit, and there are no net proceeds or the net proceeds are insufficient to repay the NSP3 investment due, the NDED NSP3-grantee can only recapture the net proceeds, if any. The net proceeds are the sales price minus superior loan repayment (other than NSP3 funds) and any closing costs. 1. Recapture entire amount. The NDED NSP3-grantee may recapture the entire amount of the NSP3 investment from the homeowner. 2. Reduction during affordability period. The NDED NSP3-grantee may reduce the NSP3 investment amount to be recaptured on a prorata CDBG—NSP3—City of Omaha-11-NS-04—Page 19 of 21 29 action and for Federal agencies and pass-through entities to arrive at a management decision. The following specific information shall be 27 of Health is a major subdivision in the Department of Health and Human Services. 16 airfare to be allowable in such cases. (2)Unless a pattern of avoidance is detected,the Federal Government will generally not question a non-profit organization's determinations that customary standard airfare or other discount airfare is unavailable for specific trips if the non-profit organization can demonstrate either of the following:(a)that such airfare was not available in the specific case;or(b)that it is the non-profit organization's overall practice to make routine use of such airfare. d. Air travel by other than commercial carrier.Costs of travel by non-profit organization-owned,-leased.or-chartered aircraft include the cost of lease,charter,operation(including personnel costs),maintenance,depreciation, insurance,and other related costs.The portion of such costs that exceeds the cost of allowable commercial air travel,as provided for in subparagraph]c.,is unallowable. e. Foreign travel.Direct charges for foreign travel costs are allowable only when the travel has received prior approval of the awarding agency.Each separate foreign trip must receive such approval.For purposes of this provision, "foreign travel"includes any travel outside Canada,Mexico,the United States,and any United States territories and possessions.However,the term"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. • http://www.whitehouse.gov/omb/circulars_aI 22_2004/ 7/20/2011 allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /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 .,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 Omaha,NE 68183 Tom Marfisi, Director 444-5050 Minority Economic Development Greater Omaha Chamber of Commerce 1301 Harney Street Omaha,NE 68102 Winsley Duran, Director 345-5000 Nebraska Department of Economic Development Small Business (MBE/WBE/DBE) Assistance 301 Centennial Mall South Lincoln,NE 68509-4666 Steve Williams, Business Assistance Manager 471-3111 4 Reviewed and approved 3/28/2011 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 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. NSP3—City of Omaha-11-NS-04—Page 20 of 21 ntary) of the housing unit, and there are no net proceeds or the net proceeds are insufficient to repay the NSP3 investment due, the NDED NSP3-grantee can only recapture the net proceeds, if any. The net proceeds are the sales price minus superior loan repayment (other than NSP3 funds) and any closing costs. 1. Recapture entire amount. The NDED NSP3-grantee may recapture the entire amount of the NSP3 investment from the homeowner. 2. Reduction during affordability period. The NDED NSP3-grantee may reduce the NSP3 investment amount to be recaptured on a prorata CDBG—NSP3—City of Omaha-11-NS-04—Page 19 of 21 29 action and for Federal agencies and pass-through entities to arrive at a management decision. The following specific information shall be 27 of Health is a major subdivision in the Department of Health and Human Services. 16 airfare to be allowable in such cases. (2)Unless a pattern of avoidance is detected,the Federal Government will generally not question a non-profit organization's determinations that customary standard airfare or other discount airfare is unavailable for specific trips if the non-profit organization can demonstrate either of the following:(a)that such airfare was not available in the specific case;or(b)that it is the non-profit organization's overall practice to make routine use of such airfare. d. Air travel by other than commercial carrier.Costs of travel by non-profit organization-owned,-leased.or-chartered aircraft include the cost of lease,charter,operation(including personnel costs),maintenance,depreciation, insurance,and other related costs.The portion of such costs that exceeds the cost of allowable commercial air travel,as provided for in subparagraph]c.,is unallowable. e. Foreign travel.Direct charges for foreign travel costs are allowable only when the travel has received prior approval of the awarding agency.Each separate foreign trip must receive such approval.For purposes of this provision, "foreign travel"includes any travel outside Canada,Mexico,the United States,and any United States territories and possessions.However,the term"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. • http://www.whitehouse.gov/omb/circulars_aI 22_2004/ 7/20/2011 allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /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. WPHTo& OPPORTUNITY 8 Reviewed and approved 3/28/2011 Address: City,St.,Zip: Phone: Name: $ ❑Yes ❑No Address: City,St.,Zip: Phone: 6 Reviewed and approved 3/28/2011 Omaha,NE 68183 Tom Marfisi, Director 444-5050 Minority Economic Development Greater Omaha Chamber of Commerce 1301 Harney Street Omaha,NE 68102 Winsley Duran, Director 345-5000 Nebraska Department of Economic Development Small Business (MBE/WBE/DBE) Assistance 301 Centennial Mall South Lincoln,NE 68509-4666 Steve Williams, Business Assistance Manager 471-3111 4 Reviewed and approved 3/28/2011 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 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. NSP3—City of Omaha-11-NS-04—Page 20 of 21 ntary) of the housing unit, and there are no net proceeds or the net proceeds are insufficient to repay the NSP3 investment due, the NDED NSP3-grantee can only recapture the net proceeds, if any. The net proceeds are the sales price minus superior loan repayment (other than NSP3 funds) and any closing costs. 1. Recapture entire amount. The NDED NSP3-grantee may recapture the entire amount of the NSP3 investment from the homeowner. 2. Reduction during affordability period. The NDED NSP3-grantee may reduce the NSP3 investment amount to be recaptured on a prorata CDBG—NSP3—City of Omaha-11-NS-04—Page 19 of 21 29 action and for Federal agencies and pass-through entities to arrive at a management decision. The following specific information shall be 27 of Health is a major subdivision in the Department of Health and Human Services. 16 airfare to be allowable in such cases. (2)Unless a pattern of avoidance is detected,the Federal Government will generally not question a non-profit organization's determinations that customary standard airfare or other discount airfare is unavailable for specific trips if the non-profit organization can demonstrate either of the following:(a)that such airfare was not available in the specific case;or(b)that it is the non-profit organization's overall practice to make routine use of such airfare. d. Air travel by other than commercial carrier.Costs of travel by non-profit organization-owned,-leased.or-chartered aircraft include the cost of lease,charter,operation(including personnel costs),maintenance,depreciation, insurance,and other related costs.The portion of such costs that exceeds the cost of allowable commercial air travel,as provided for in subparagraph]c.,is unallowable. e. Foreign travel.Direct charges for foreign travel costs are allowable only when the travel has received prior approval of the awarding agency.Each separate foreign trip must receive such approval.For purposes of this provision, "foreign travel"includes any travel outside Canada,Mexico,the United States,and any United States territories and possessions.However,the term"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. • http://www.whitehouse.gov/omb/circulars_aI 22_2004/ 7/20/2011 allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /2011 ATTACHMENT CITY OF OMAHA SUBSIDY LAYERING STANDARDS FOR THE HOME/NSP/NAHTF PROGRAM Standard: Before committing funds to a project, the City of Omaha will evaluate the project in accordance with the following guidelines and will not invest any more HOME/NSP/NAHTF funds, in combination with other, private and/or governmental assistance, than is necessary to provide affordable housing. This standard is established in accordance with Cranston Gonzalez National Affordable Housing Act, Section 212(F)as amended and 24 CFR Part 91. Layering Guidelines: Generally, there will be multiple levels of review of the assistance received on a project. The City of Omaha will rely on the determinations of the Nebraska Investment Finance Authority, the City's Tax Increment Financing Authority and the Nebraska Equity Fund, as appropriate, in evaluating such assistance. City of Omaha Community Development staff will review the project pro-forma in assessing whether or not the proposed HOME/NSP/NAHTF fund allocation is necessary to ensure feasibility of the project. All sources and uses of funds will be detailed in applications and reviewed to determine that funding sources are committed, an evaluation of all costs associated with the development will be conducted and the reasonableness and appropriateness of the development costs will be assessed. All costs will be compared to industry standards as to their reasonableness and certified by the Construction Specialist. The City shall ensure that costs being funded by HOME/NSP/NAHTF are eligible and that per unit assistance does not exceed the maximum. Developers will be required to provide a project pro forma to the City of Omaha. The aggregate amount of assistance from the US Department of Housing and Urban Development and all other sources will be considered to ensure the viability of the project. Factors relevant to the feasibility of the project will include, among other things, rates of returns to owners and investors relative to current interest rates, long-term needs of the project and the usual and customary fees charged to the project. The target population and the needs of tenants will also be considered when reviewing a project. The City's policy is that projects serving extremely low-income persons will generally require a higher subsidy than projects serving low-income persons, and that projects serving low-income persons will require a higher subsidy than projects serving moderate-income persons, and so forth. Other factors may include whether or not the project serves primarily persons with physical or mental disability, elderly persons, or others with special needs. Additionally, non-profit organizations will generally require a higher subsidy than for-profit businesses. Project cash flow and rate of return will also be evaluated. The City of Omaha normally will not allow an excessive gain or profit to be derived from a project. The specific standard governing rate of return is the return on investment shall not exceed twenty percent(20%); except in the case of a Single-Family Rental Rehabilitation Program project with no first mortgage, the project costs have been certified by the Planning Department, rents are affordable, and operating expenses are reasonable,the maximum return on investment shall not exceed forty percent(40%). Certification: The project located , has been evaluated in accordance with the above Subsidy Layering Standards for the HOME/NSP/NAHTF Program guidelines, as approved by the Planning Director and the Housing and Community Development Manager. Contract Administration Date and Compliance Manager Revised and approved 12/4/2009 e amount of the NSP3 investment from the homeowner. 2. Reduction during affordability period. The NDED NSP3-grantee may reduce the NSP3 investment amount to be recaptured on a prorata CDBG—NSP3—City of Omaha-11-NS-04—Page 19 of 21 29 action and for Federal agencies and pass-through entities to arrive at a management decision. The following specific information shall be 27 of Health is a major subdivision in the Department of Health and Human Services. 16 airfare to be allowable in such cases. (2)Unless a pattern of avoidance is detected,the Federal Government will generally not question a non-profit organization's determinations that customary standard airfare or other discount airfare is unavailable for specific trips if the non-profit organization can demonstrate either of the following:(a)that such airfare was not available in the specific case;or(b)that it is the non-profit organization's overall practice to make routine use of such airfare. d. Air travel by other than commercial carrier.Costs of travel by non-profit organization-owned,-leased.or-chartered aircraft include the cost of lease,charter,operation(including personnel costs),maintenance,depreciation, insurance,and other related costs.The portion of such costs that exceeds the cost of allowable commercial air travel,as provided for in subparagraph]c.,is unallowable. e. Foreign travel.Direct charges for foreign travel costs are allowable only when the travel has received prior approval of the awarding agency.Each separate foreign trip must receive such approval.For purposes of this provision, "foreign travel"includes any travel outside Canada,Mexico,the United States,and any United States territories and possessions.However,the term"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. • http://www.whitehouse.gov/omb/circulars_aI 22_2004/ 7/20/2011 allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /2011 Housing and Community Development Division City of Omaha Planning Department Cost Certification Form Project Name: Omaha Habitat New Housing Program Project Owner: Habitat for Humanity of Omaha, Inc. Project Address: 3875 Decatur St., 3828 Franklin St., 3832 Franklin St., 3844 Seward St., 3848 Seward St. Certified amount: $650,000.00 (5 New Single Family Houses @ $130,000.00 ea.) The Rehabilitation Division has reviewed the project cost estimate, work write-up or plans, specifications, & proposal. In our opinion the project cost proposed is reasonable given the type of work that is to be completed. Construction Specialist: Date: 6-.v/- a0i/ Development Section Manager: Date: �( 2eGt 444-5530. 3 Reviewed and approved 3/28/2011 ty of Omaha-11-NS-04—Page 16 of 21 Z $ - C-25A CITY OF OMAHA LEGISLATIVE CHAMBER Omaha,Nebraska RESOLVED BY THE CITY COUNCIL OF THE CITY OF OMAHA: • WHEREAS, on July 21, 2010, Congress appropriated a third round of Neighborhood Stabilization Funds in §1497 of Subtitle H of Title XIV of the Dodd-Frank Wall Street Reform and Consumer Protection Act, Federal Public Law 111-203; approved ("Dodd-Frank Act") referred to as Neighborhood Stabilization Program Three("NSP3"); and, WHEREAS,the State of Nebraska has received NSP3 funds from the U.S.Department of Housing and Urban Development (HUD) to be distributed as grants to eligible grantees to undertake and carry out eligible projects under Title XIV of the Dodd-Frank Act of the HERA, commonly referred to as NSP3; and, WHEREAS, the City Council approved Resolution No. 477 on April 19, 2011 wherein the City of Omaha applied for funding for the Omaha Habitat New Housing Program, and subsequently received a grant of NSP3 funds from the State of Nebraska under Contract No. 11-NS-04, to provide $235,000.00 in NSP3 funds to Habitat For Humanity of Omaha, Inc. (hereinafter referred to as "HFHO") and agreed to provide $15,000.00 in City of Omaha matching funds to HFHO to construct five houses in Census Tract 53 to be occupied by qualified very low-income homebuyers as their principal place of residence; and, WHEREAS, it is in the best interest of the City of Omaha and the residents thereof to enter into an Agreement with HFHO for the development of the Omaha Habitat New Housing Program to construct five(5)affordable single-family houses. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF OMAHA: THAT, as recommended by the Mayor, the attached Agreement between the City of Omaha and Habitat For Humanity of Omaha, Inc., a Nebraska Non-profit Corporation (HFHO), Amanda Brewer, Executive Director/President, 2204 Ames Avenue, Omaha,Nebraska 68110, to construct five(5) single-family houses in Census Tract 53, generally located northeast of 42nd and Hamilton Streets, in the amount of$250,000.00 is hereby approved. Funding in the amount of$235,000.00 shall be payable from the FY 2011 NSP3 Housing Development Program, Fund No. 12207, Organization No. 129166 and funding in the amount of$15,000.00 shall be payable from the FY 2011 HOME General Fund Match, Fund No. 11111, Organization No. 109023. APPROVED AS TO FORM: Cap-j 04. 6 I Pln1sf1566-res '`►_ 1, CITY ATTORNEY DATE .aryyti4 By • cilmember Adopted - 1 5 2 11 g- City lerk Ofdi Approved.. Mayor ds. Additionally, non-profit organizations will generally require a higher subsidy than for-profit businesses. Project cash flow and rate of return will also be evaluated. The City of Omaha normally will not allow an excessive gain or profit to be derived from a project. The specific standard governing rate of return is the return on investment shall not exceed twenty percent(20%); except in the case of a Single-Family Rental Rehabilitation Program project with no first mortgage, the project costs have been certified by the Planning Department, rents are affordable, and operating expenses are reasonable,the maximum return on investment shall not exceed forty percent(40%). Certification: The project located , has been evaluated in accordance with the above Subsidy Layering Standards for the HOME/NSP/NAHTF Program guidelines, as approved by the Planning Director and the Housing and Community Development Manager. Contract Administration Date and Compliance Manager Revised and approved 12/4/2009 e amount of the NSP3 investment from the homeowner. 2. Reduction during affordability period. The NDED NSP3-grantee may reduce the NSP3 investment amount to be recaptured on a prorata CDBG—NSP3—City of Omaha-11-NS-04—Page 19 of 21 29 action and for Federal agencies and pass-through entities to arrive at a management decision. The following specific information shall be 27 of Health is a major subdivision in the Department of Health and Human Services. 16 airfare to be allowable in such cases. (2)Unless a pattern of avoidance is detected,the Federal Government will generally not question a non-profit organization's determinations that customary standard airfare or other discount airfare is unavailable for specific trips if the non-profit organization can demonstrate either of the following:(a)that such airfare was not available in the specific case;or(b)that it is the non-profit organization's overall practice to make routine use of such airfare. d. Air travel by other than commercial carrier.Costs of travel by non-profit organization-owned,-leased.or-chartered aircraft include the cost of lease,charter,operation(including personnel costs),maintenance,depreciation, insurance,and other related costs.The portion of such costs that exceeds the cost of allowable commercial air travel,as provided for in subparagraph]c.,is unallowable. e. Foreign travel.Direct charges for foreign travel costs are allowable only when the travel has received prior approval of the awarding agency.Each separate foreign trip must receive such approval.For purposes of this provision, "foreign travel"includes any travel outside Canada,Mexico,the United States,and any United States territories and possessions.However,the term"foreign travel"for a non-profit organization located in a foreign country means travel outside that country. • http://www.whitehouse.gov/omb/circulars_aI 22_2004/ 7/20/2011 allocation shall be made in that manner.When the expenses in a cost grouping are more general in nature,the allocation shall be made through the use of a selected base which produces results that are equitable to both the Federal Government and the organization.The distribution shall be made in accordance with the bases described herein unless it can be demonstrated that the use of a different base would result in a more equitable allocation of the costs,or that a more readily available base would not increase the costs charged to sponsored awards.The results of special cost studies(such as an engineering utility study)shall not be used to determine and allocate the indirect costs to sponsored awards. http://www.whitehouse.gov/omb/circulars_a122_2004/ 7/20/2011 /2011 i ( 0t) * 5- r, xva "'• Ott OQ' cri a '* N p OO ztz RPL O� W Q., K b I.-, ~ 6-. — O _ 4 OA `C Cr Cr Z U� 1.4 Z Orq C OzOo too N0 ¢. ayPT. aCI) 5 o O nl. G7 I UQ ^ O N P c V 0 Ooo v A) ,,4- � � � O0`C O vl �~, N Zp CD 'A\ O A� Q' p.. G, to C N N c° g O N A \ .-. CD i-hA CA C1) O 'TJ Wes O- 1-II ti� N* i7x• N O CT) — O A� Q. a n �h C N O O ,-•• p ,-i (4) 0 ,-* O ..• Q•PO (JQ. Ui^ 0 • Pam. r P- 5 N 4 via N 5• �, fa—Lk-) 9 N 'r3 .P ,--t� C , S, S\ 2 ty of Omaha-11-NS-04—Page 16 of 21 Z $ -