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RES 2006-0888 - Agmt with Council Bluffs for construction of housing units • 01,0,HA,N4, RECEIVEDPlanning Department t�r Omaha/Douglas Civic Center i, -.t r� p ry (g 1819 Farnam Street,Suite 1100 ftP0 Q�i � `� F J Omaha,Nebraska 68183 O' ✓ • 90 ro C r;i •. (402)444-5150 O 4, f Telefax(402)444-6140 Steven N.Jensen,AICP City of Omaha Director Mike Fahey,Mayor August 15, 2006 Honorable President and Members of the City Council, The attached proposed Resolution approves an Inter-Local HOME Investment Partnerships Program (HOME) loan agreement for FY 2005 in the amount of$172,894.00 between the City of Omaha and the City of Council Bluffs, 209 Pearl Street, Council Bluffs, Iowa 51503. The City of Council Bluffs will use the HOME Program funds to provide partial financing for land acquisition and/or new construction of 6 units within one (1) or two (2) multiple-family housing projects for qualified low and moderate income households whose annual household incomes are 80% and below the Median Income (MFI) By Family Size at locations to be determined at a later date. The rental property assistance will be applied towards land acquisition and/or construction- related costs. The City Council approved the HOME Investments Partnerships Program Consortium Cooperation Agreement between the City of Omaha and the City of Council Bluffs on July 14, 2001, by Resolution No. 1874. The HOME Consortium Cooperation Agreement created the Omaha-Council Bluffs Home Consortium for the purposes of receiving an increased HOME Fund allocation from the U.S. Department of Housing and Urban Development and administering the HOME Program as a single grantee. The HOME Consortium Cooperative Agreement shall be in full force and effect until September 30, 2012. The Project for FY 2005 is included in the FY 2005 Consolidated Submission for Community Planning and Development Programs approved by the City Council on November 2 2004, by Resolution No. 1268, as amended by City Council Resolution No.1147 on October 4, 2005. These funds shall be payable from the FY 2005 HOME Investment Partnerships Housing Development Program, Fund No. 12179,Organization No. 128042. The total estimated cost for the Project is $172,894.00 and will be funded with FY 2005 HOME funds. Honorable President and Members of the City Council Page 2 Authorizing the approval of this proposed Resolution will allow the City of Council Bluffs to make affordable housing opportunities available to low and moderate income residents of Council Bluffs, Iowa. Your favorable consideration of this Resolution will be appreciated. Respectfully submitted, Referred to City Council for Consideration: 1 .2.4.0(4, )N\ 7 _a2 .pb Steven N. Jens n, CP Date Mayor's Office Date Planning Direc Approved: Approved: 1.),-) lc* 7/..S7 Carol A. Ebdon Date Gail 'n y T on Date Finance Director I' Human Rights and Relations 'rector P:\PLN3\13637pjm.doc INTER-LOCAL HOME AGREEMENT BETWEEN THE CITY OF OMAHA, NEBRASKA AND THE CITY OF COUNCIL BLUFFS,IOWA FOR HOME FINANCING TO PARTIALLY FUND CONSTRUCTION OF ONE OR TWO MULTI-FAMILY RENTAL PROJECTS Fiscal Year 2005 Council Bluffs, Iowa. Your favorable consideration of this Resolution will be appreciated. Respectfully submitted, Referred to City Council for Consideration: 1 .2.4.0(4, )N\ 7 _a2 .pb Steven N. Jens n, CP Date Mayor's Office Date Planning Direc Approved: Approved: 1.),-) lc* 7/..S7 Carol A. Ebdon Date Gail 'n y T on Date Finance Director I' Human Rights and Relations 'rector P:\PLN3\13637pjm.doc TABLE OF CONTENTS SECTION 1 DEFINITIONS AND ABBREVIATIONS SECTION 2 RESPONSIBILITIES OF CONTRACTOR 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 Documents Required by City 3.01.1 Property Insurance 3.01.2 Security for DPL SECTION 4 PROJECT RESPONSIBILITIES OF THE CONTRACTOR 4.01 Eligible Use of Funds 4.02 Terms and Conditions 4.03 Use Restrictions 4.04 Breach of Agreement 4.05 Ineligible/Eligible Cost 4.06 Lead-Base Paint Prohibition 4.07 Ongoing Property Restrictions 4.08 Davis-Bacon Labor Standards 4.09 Property Standards 4.10 Section 504 4.11 Affirmative Marketing Policy SECTION 5 GENERAL ADMINISTRATION REQUIREMENTS OF CONTRACTOR 5.01 Financial Management 5.02 Documentation and Record-Keeping 5.03 Reports 5.04 Financial Status Report 5.05 Personnel and Participant Conditions SECTION 6 CONTRACTOR'S COMPLIANCE WITH OTHER FEDERAL REGULATIONS 6.01 Environmental Review 6.02 Uniform Relocation Act 6.03 Fair Housing 6.04 Drug Free Workplace sts. The City Council approved the HOME Investments Partnerships Program Consortium Cooperation Agreement between the City of Omaha and the City of Council Bluffs on July 14, 2001, by Resolution No. 1874. The HOME Consortium Cooperation Agreement created the Omaha-Council Bluffs Home Consortium for the purposes of receiving an increased HOME Fund allocation from the U.S. Department of Housing and Urban Development and administering the HOME Program as a single grantee. The HOME Consortium Cooperative Agreement shall be in full force and effect until September 30, 2012. The Project for FY 2005 is included in the FY 2005 Consolidated Submission for Community Planning and Development Programs approved by the City Council on November 2 2004, by Resolution No. 1268, as amended by City Council Resolution No.1147 on October 4, 2005. These funds shall be payable from the FY 2005 HOME Investment Partnerships Housing Development Program, Fund No. 12179,Organization No. 128042. The total estimated cost for the Project is $172,894.00 and will be funded with FY 2005 HOME funds. 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 CONTRACTOR 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 ATTACHMENT P:\PLN3\13639pjm.doc INTER-LOCAL HOME AGREEMENT (PARTIAL FUNDING FOR ACQUISITION OF LAND AND/OR NEW CONSTRUCTION OF MULTI-FAMILY HOUSING DEVELOPMENT PROJECTS) THIS AGREEMENT is entered into by and between the City of Omaha, Nebraska, (sometimes hereinafter referred to as "the City") and the City of Council Bluffs, Iowa, municipal corporations, 209 Pearl Street, Council Bluffs, Iowa 51503 (sometimes hereinafter referred to as the "Subrecipient")based on terms, conditions and provisions as set forth below. RECITALS: WHEREAS, the City of Omaha is a municipal corporation located in Douglas County, Nebraska, and is organized and 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 Council Bluffs is a municipal corporation located in Pottawattamie County, Iowa, and is organized and existing under the laws of the State of Iowa, and is authorized and empowered to exercise all powers conferred by the Iowa State constitution, laws and local ordinances including,but not limited to, the power to contract; and, WHEREAS, the City of Omaha annually receives HOME Investment Partnerships Program (HOME) funds under Title II of the Cranston-Gonzalez National Affordable Housing Act, as amended, for the purpose of providing affordable housing opportunities for low income households; and, WHEREAS, on August 24, 2001, by Resolution No. 1874, the Omaha City Council approved a Home Investment Partnerships Program Consortium Cooperation Agreement (Cooperation Agreement) between the City of Omaha and the City of Council Bluffs for the ooperative Agreement shall be in full force and effect until September 30, 2012. The Project for FY 2005 is included in the FY 2005 Consolidated Submission for Community Planning and Development Programs approved by the City Council on November 2 2004, by Resolution No. 1268, as amended by City Council Resolution No.1147 on October 4, 2005. These funds shall be payable from the FY 2005 HOME Investment Partnerships Housing Development Program, Fund No. 12179,Organization No. 128042. The total estimated cost for the Project is $172,894.00 and will be funded with FY 2005 HOME funds. purposes of receiving a HOME Fund allocation from the U.S. Department of Housing and Urban Development and administering the HOME Program as a single grantee; and, WHEREAS, the City of Omaha and the City of Council Bluffs are considered geographically contiguous units of local government; and, WHEREAS, the Cooperation Agreement provided for the transfer of a portion of the HOME Funds received by the City of Omaha; as lead member of the consortium, to the City of Council Bluffs based on the proportion of HOME Funds attributable to the City of Council Bluffs' participation in the Consortium, less ten percent to be used by the City of Omaha for administrative purposes; and, WHEREAS, the City of Omaha has applied for and received HOME Investment Partnerships Program (hereinafter referred to as "HOME") Funds under Title II of the National Affordable Housing Act of 1990, for the purpose of providing affordable housing opportunities for low income households; and, WHEREAS, the Omaha— Council Bluffs Consortium FY 2005 Consolidated Submission for Community Planning and Development Programs (hereinafter referred to as "Consolidated Plan"), outlining priorities, programs and funding allocations for the 2005 program year, was approved on November 2, 2004, by Resolution No. 1268, as amended by City Council Resolution No. 1147 on October 4, 2005; and, WHEREAS, the City of Council Bluffs has submitted applications for partial financing for land acquisition and/or new construction of 6 units within one (1) or two (2), multiple family housing projects for qualified low and moderate income households at locations to be determined at a later date within the City of Council Bluffs (hereafter referred to as the "Project"); and, WHEREAS, the City of Council Bluffs has been involved in the acquisition of land and new construction of multiple-family housing projects; and, -2- t for FY 2005 is included in the FY 2005 Consolidated Submission for Community Planning and Development Programs approved by the City Council on November 2 2004, by Resolution No. 1268, as amended by City Council Resolution No.1147 on October 4, 2005. These funds shall be payable from the FY 2005 HOME Investment Partnerships Housing Development Program, Fund No. 12179,Organization No. 128042. The total estimated cost for the Project is $172,894.00 and will be funded with FY 2005 HOME funds. • WHEREAS, the City of Omaha is providing partial financing of 6 units within one (1) or two (2) multiple-family housing development projects through the use of$172,894.00 FY 2005 HOME Program Funds for qualified low and moderate-income households whose annual household incomes are 80% and below of the Median Income By Family Size, over the Term of the Agreement; and, WHEREAS, the Consolidated Plan identified that the Project provides or improves housing which is determined to benefit low and moderate income persons, therefore the Project is consistent with the Consolidated Plans and is eligible for funding; and, WHEREAS, the City of Omaha wishes to enter into an Inter-Local Agreement with the City of Council Bluffs in utilizing such HOME funds; and, WHEREAS, the City of Council Bluffs has the same program year, January 1 to December 31, as the City of Omaha; and, WHEREAS, it is in the best interest of the City of Omaha and the residents thereof that the City of Omaha enter into an Inter-Local Agreement with the City of Council Bluffs to provide funding in a total amount not to exceed$172,894.00 for the Project. NOW, THEREFORE, IN CONSIDERATION OF THESE MUTUAL COVENANTS, the parties do hereby agree as follows: SECTION 1. DEFINITIONS AND ABBREVIATIONS The following terms shall have the following meanings for all purposes in this Agreement. 1.01 "City" shall mean—the City of Omaha, a Nebraska Municipal Corporation. 1.02 "Subrecipient" shall mean — a public or private non-profit agency, authority or organization receiving HOME funds to undertake eligible activities. In this Agreement, the Subrecipient shall be the City of Council Bluffs, an Iowa municipal corporation, Community Development Depaitiiient, 209 Pearl Street, Council Bluffs, Iowa 51503. -3- -family housing projects; and, -2- t for FY 2005 is included in the FY 2005 Consolidated Submission for Community Planning and Development Programs approved by the City Council on November 2 2004, by Resolution No. 1268, as amended by City Council Resolution No.1147 on October 4, 2005. These funds shall be payable from the FY 2005 HOME Investment Partnerships Housing Development Program, Fund No. 12179,Organization No. 128042. The total estimated cost for the Project is $172,894.00 and will be funded with FY 2005 HOME funds. 1.02.1 "Contractor" shall mean—the City of Council Bluffs. 1.03 "Director" shall mean—the Planning Director of the City of Omaha. 1.04 "Recipient" shall mean—the City of Omaha. 1.05 "Developer" shall mean — qualified for-profit or non-profit organizations(s) that the Subrecipient approves to undertake eligible HOME Projects. 1.05.1 "Client" shall mean — a qualified participant making application to the City of Council Bluffs to participate in the Project. 1.06 "HUD" shall mean—the U.S. Department of Housing and Urban Development. 1.07 "HOME Funds" shall mean — that portion of the HOME Investment Partnerships Program funds awarded to the City, subject to and conditioned upon actual receipt of same by the City, as may be available to grant during the FY 2005 program year for the use specified herein in an amount not to exceed $172,894.00 payable from the FY 2006 HOME Housing Development Program, Fund No. 12179 Organization No. 128042, subject to the terms, conditions and requirements of said Loan Fund Agreement. 1.08 "Property" or "Project(s)" shall mean — 6 HOME assisted, floating units constructed within one (1) or two (2) multiple-family housing development projects at locations to be determined at a later date. 1.09 "HOME Program Multifamily Assistance" shall mean — a HOME program grant provided to Developers for land acquisition or new construction costs or rental rehabilitation assistance for rental units. For each individual project with five or more HOME-assisted units, at least twenty percent (20%) of the HOME-assisted rental units must be occupied by households with annual incomes equal to or less than fifty percent (50%) of Median Family Income (MFI). Tenants occupying such units shall be governed by Low HOME rent levels. Maximum MFI for the balance of the HOME assisted units shall be 80% and below of MFI. The Project shall provide HOME Program Multifamily Assistance for one or two properties, wherein HOME-assisted units shall be floating for one or both properties. Developers of assisted Properties shall be required to execute for the benefit of Subrecipient a Mortgage, Promissory Note and Covenant to ensure assisted units meet Affordability Period requirements for requisite periods. 1.10 "Project Completion" shall mean — the date leveraged funds have been received by the Subrecipient and allocated to the Project, Construction Completion has been certified and approved by the Subrecipient, all HOME funds have been disbursed, and all units have been purchased or occupied by low and moderate income households. 1.11 "Project Close Out" shall mean — the dates all project HOME funds have been disbursed and the Subrecipient and the City have completed HUD close out -4- procedures (24 C.F.R. 92.507 and OMB Circular A-87)) (Exhibit "G"). The distinction between Project Close Out and Project Completion is that occupancy requirements are required to be satisfied for Project Completion. As a result, Project Close out shall typically occur prior to Project Completion. 1.12 "Affordability Period" (24 C.F.R. 92.252(e)) shall mean— that time period, up to twenty (20) years after Project Close Out in which Subrecipient and its Developers shall keep assisted properties affordable. During the Affordability Period, the Subrecipient must ensure that HOME-assisted units continue to meet rent, property standards, and occupancy requirements and as described in Section 5.03 herein. For Multifamily Assistance, the Affordability Period shall commence at Project Close Out and continue until August 31, 2028. In the event the term of the Agreement would be extended, the Affordability Period would be extended for the additional time. Alternately, in the event Project Close Out would be accelerated, the term of the Agreement and Affordability Period will be moved forward correspondingly. 1.13 Low-and Moderate-Income Family or Household" shall mean — a household whose annual income does not exceed 80% of the median family income for the Omaha NE-IA Metropolitan Statistical Area as determined by HUD and updated annually (Exhibit "B"). 1.14 "HOME" shall mean — that portion of the HOME Investment Partnerships Program entitlement awarded to the City of Omaha, subject to and conditioned upon actual receipt of same by the City of Omaha, as may be available to grant during the FY 2005 program year for the use specified herein in an amount not to exceed $172,894.00, subject to the terms, conditions and requirements of said Agreement. 1.15 "Program Income" shall mean — the gross income received by the Subrecipient directly generated from the use of HOME Funds (24 C.F.R. 92.503). When such income is generated by an activity that is only partially assisted with HOME Funds, the income shall be prorated to reflect the percentage of HOME Funds used (See Exhibit "C" attached hereto and incorporated herein by this reference as though fully set forth). Any program income funds received during the term of this Agreement shall be returned to the City within thirty (30) days prior to any additional distribution of HOME Funds. SECTION 2. RESPONSIBILITIES OF SUBRECIPIENT 2.01 Overall Project Performance The Subrecipient shall use the HOME Funds for the following projects to assist qualified low and moderate income renters to occupy units. Occupants shall be those households whose annual incomes are 80% and below the Median Family Income (Exhibit "B") as set forth in Section 2.01.1. -5- 2.01.1 Project Achievements Total Projects Multiple Family Housing Total HOME Total Low/Moderate Units Assisted Units Income Units (a minimum of) 1 6 6 Number of Low/Moderate Maximum Percent of Area Households (minimum) Median Income Permitted 5 80% 1 50% Number of Households Permitted to be Above Low/Moderate Maximum Percent of Area Households Median Income Permitted 0 None 2.02 Project Budget. The Subrecipient asserts that the funding sources and amounts listed below are committed as of this date or will be committed to the Project during the term of this Agreement. FY 2005 HOME $ 172,894.00 Estimated Project Cost $ 172,894.00 The Project cost is an estimation of total funding source. Any change in the amount or source of funds (except HOME funds) shall be approved by the Community Development Department Director for the Subrecipient. 2.03 Term of the Agreement. This Agreement shall be in full force and effect commencing January 1, 2005 and shall end on August 31, 2028. The levels of Overall Project Performance stated in Sections 2.01 and 2.02 herein shall be completed as of August 31, 2008. This date may be extended to February 28, 2009 by the Director. If this date is extended, the term of the agreement would be extended accordingly. SECTION 3. CONDITIONS FOR RECEIPT OF CITY FINANCING 3.01 Documents Required by City. Subrecipient shall submit satisfactory written confirmation of the following documents to limit Subrecipient's and the City's liability hereunder. The City shall not 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 Subrecipient has received and submitted the documents listed below. -6- partially assisted with HOME Funds, the income shall be prorated to reflect the percentage of HOME Funds used (See Exhibit "C" attached hereto and incorporated herein by this reference as though fully set forth). Any program income funds received during the term of this Agreement shall be returned to the City within thirty (30) days prior to any additional distribution of HOME Funds. SECTION 2. RESPONSIBILITIES OF SUBRECIPIENT 2.01 Overall Project Performance The Subrecipient shall use the HOME Funds for the following projects to assist qualified low and moderate income renters to occupy units. Occupants shall be those households whose annual incomes are 80% and below the Median Family Income (Exhibit "B") as set forth in Section 2.01.1. -5- 3.01.1 Property Insurance. Subrecipient shall procure and maintain, at a minimum, fire and extended coverage insurance in an amount sufficient to protect the City of Council Bluffs' interest in the property during the term of the Agreement and financing security documents (OMB Circular A-110) (Exhibit "A"). The insurance policy shall include the City of Council Bluffs as an additional insured. Written evidence of such insurance shall be submitted to the City of Council Bluffs for approval. In the event of damage of the property, any insurance proceeds are to be applied, at the discretion of the City of Council Bluffs Community Development Director, to the reconstruction of the property or repayment, in full, of the funding. 3.01.2 Performance and Labor Material Payment Bond and/or an Irrevocable Letter of Credit. Subrecipient's Developer shall acquire and maintain performance bond and/or letter of credit in force for one year following the completion of the Construction Work from the Developer/General Contractor and all subcontractors in an aggregate amount of the contract bid for the Properties. The Bonds and/or Letters of Credit shall be in favor of the Subrecipient and shall be submitted to the Subrecipient's City of Council Bluffs Community Development Department Director for review and approval. The Community Development Department Director reserves the right to reject the Letters of Credit and Choice of Surety of the Bonds. Upon written request by the Developer, the City of Council Bluffs Community Development Department Director may waive this requirement. 3.01.3 Contractors' Insurance and Workers' Compensation. The Subrecipient or its contractors and subcontractors shall submit Certificates of Insurance in favor of the City of Council Bluffs for review and approval by the City of Council Bluffs Community Development Director. 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 $2,000,000.00 ($1,000,000.00 each occurrence) • Produce, Including Completed Operations $1,000,000.00 SECTION 4. PROJECT RESPONSIBILITIES OF THE SUBRECIPIENT 4.01 Eligible Use of Funds. The Subrecipient 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. -7- e those households whose annual incomes are 80% and below the Median Family Income (Exhibit "B") as set forth in Section 2.01.1. -5- 4.02 Terms and Conditions. The Subrecipient shall abide by all terms and conditions of this Agreement and shall be responsible for the security and maintenance of the sites described herein. 4.03 Use Restrictions. The Subrecipient agrees that each of the housing units assisted pursuant to this Agreement shall be occupied by a Low- and Moderate-Income household throughout the Affordability Period. 4.04 Breach of Agreement. If through breach of this Agreement the Subrecipient fails to apply the occupancy, affordability and use restrictions as described herein, HOME funds previously provided to the Subrecipient through fulfillment of this Agreement may be required to be returned to the City. 4.05 Ineligible Costs. The Subrecipient shall be responsible for payment of any Project costs that exceed those specified in this Agreement. 4.05.1 Eligible Costs. The Subrecipient shall not request disbursement of funds under this Agreement until the funds are needed for homebuyer down payment assistance payment loans as described in Section 1.09 herein. 4.05.2 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. Subrecipient or its Developer(s) 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 Subrecipient further agrees to abide by Federal requirements regarding lead-based paint poison prevention. 4.07 Ongoing Property Restrictions. During the term of this Agreement and that of any grant, deed of trust/mortgage, covenant documents, the Subrecipient or its 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 Subrecipient's interest in the Property. Such property insurance policy must be properly endorsed showing the Subrecipient as an additional insured. In the event of loss or damage, the Subrecipient shall provide immediate written notification to the City of any loss: Proceeds from any claim under this policy may, at the discretion -8- below the Median Family Income (Exhibit "B") as set forth in Section 2.01.1. -5- of the Director, be either applied to restore or replace the improvements damaged or be paid to the Subrecipient to satisfy the obligation to the Subrecipient under the terms of this Agreement. 4.08 Davis-Bacon Labor Standards. Subrecipient agrees to comply with the requirements of the Secretary of Labor in accordance with the Davis-Bacon Acts amended (40 U.S.C. 76a-a-7), the provisions of Contract Work Hours, the Safety Standards Act, the Copeland "Anti-Kickback" Act (18 U.S.C. 874 and 40 U.S.C. 276 (c) and all other applicable federal, state and local laws and regulations pertaining to labor standards insofar as those acts apply to the performance of this Agreement. In the event Davis Bacon wage rates are triggered on any individual property in the Project, Subrecipient and its Developer shall comply with and ensure that all bid documents, contracts, and subcontracts contain the HUD 4010 Federal Labor Standards provisions (attached herein as Exhibit "E") and applicable Department of Labor Wage Determination. In addition, Subrecipient shall certify that no Developer or its subcontractors are ineligible for federally assisted work. Once a Project is identified as subject to Davis-Bacon, all funds involved in the Project shall be governed by Davis-Bacon Labor Standards. The wage determination may be modified to keep it current. All actions modifying a general wage determination apply unless notice of such action is published less than 10 days before the contract award for the HOME assisted property in the Project. The wage determination is required to be updated in the event construction has not commenced within ninety (90) days for the date of the contract award to its Developers. 4.09 Property Standards (24 C.F.R. 92.251). The Subrecipient or its Developer(s) 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 Subrecipient's Local Property Standards. 4.09.1 After completion of Construction Work, the Property must comply with all appropriate Subrecipient codes and ordinances, Federal Section 8 Housing Quality Standards and fire safety codes (24 C.F.R. 570.02), City of Council Bluffs Property Rehabilitation Standards and accessibility requirements, where applicable. 4.10 Section 504. Subrecipient and its Developers shall comply with Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 706) which requires that new construction of multi-family projects shall be designed and constructed to be readily accessible to and usable by individuals with handicaps. Multi-family housing means a project containing five or more dwelling units. A minimum of five percent (5%), or at least one unit, of the total dwelling units shall be readily accessible to and usable by individuals with mobility impairments and two percent (2%), or at least one unit, of the total units shall be accessible to the hearing and/or visually impaired (see Attachment 5, CPD Notices 00-9, 02-03 and 00-10) attached hereto and incorporated herein). -9- 4.11 Affirmative Marketing Policy (24 C.F.R. 92-351). The Subrecipient agrees to comply with the City's Affirmative Marketing Policy, or comparable policy, attached hereto as Exhibit "F" 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 Subrecipient shall also conform to the nondiscrimination provisions. SECTION 5. GENERAL ADMINISTRATIVE REQUIREMENTS OF SUBRECIPIENT Subrecipient agrees to comply with the following requirements: 5.01 Financial Management. 5.01.1 Accounting Standards. The Subrecipient agrees to comply with OMB Circular A-110 (Exhibit "A") 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 "A", attached hereto and incorporated herein as though fully set forth). 5.01.2 Cost Principles. The Subrecipient shall comply with the requirements and the standards of OMB Circular No. A-87, "Cost Principles for the States, Local, and Indian Tribal Governments" (Exhibit "G"), and with the requirements of OMB Circular A-110 (Exhibit "A"). Both Exhibits are attached hereto and incorporated herein as though fully set forth. 5.01.3 Audits. The Subrecipient shall comply with all provisions and regulations of the Program and have an annual audit completed in compliance with OMB Circular A-133, attached hereto as Exhibit "H", 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 Subrecipient within 30 days after receipt of audit by the Subrecipient. Failure of the Subrecipient 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. -10- ich requires that new construction of multi-family projects shall be designed and constructed to be readily accessible to and usable by individuals with handicaps. Multi-family housing means a project containing five or more dwelling units. A minimum of five percent (5%), or at least one unit, of the total dwelling units shall be readily accessible to and usable by individuals with mobility impairments and two percent (2%), or at least one unit, of the total units shall be accessible to the hearing and/or visually impaired (see Attachment 5, CPD Notices 00-9, 02-03 and 00-10) attached hereto and incorporated herein). -9- • 5.02 Documentation and Record-Keeping (24 C.F.R. 92.508). All Subrecipient's/ Developers' 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 Subrecipient, its Developer(s) with any subcontractors shall include this Section to ensure said access. 5.02.1 Record Retention. The Subrecipient, its Developer(s) and their 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 Subrecipient, its Developer(s) and their subcontractors which are directly pertinent to this Project for the purpose of making audit, examination, excerpts and transcriptions. Such records and accounts shall be retained for five (5) years after expiration of the Affordability Period. (OMB Circular A-110) (Exhibit "A"). 5.03 Reports. The Subrecipient shall submit to the City the following reports in accordance with 24 C.F.R. 92.505 with the submission timelines as specified. 5.03.1 Tenant/Occupancy Report. The Subrecipient shall provide to the Director an initial occupancy report and an income computation form that contains the following information (Exhibit "I"): 5.03.1.1 name(s) tenant(s) 5.03.1.2 address of property 5.03.1.3 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 Asset Form(Exhibit "B") 5.03.1.4 household size 5.03.1.5 gender of head of household member 5.03.1.6 name and age of each household member 5.03.1.7 race/ethnicity of head of household 5.03.1.8 disability status of any household member 5.03.1.9 copy of annual lease for rental properties 5.03.2.0 evidence of affirmative marketing efforts 5.04 Financial Status Reports. Subrecipient shall submit financial status reports (OMB Circular A-110) (Exhibit "A") along with pay requests. These reports shall accompany pay requests. In the event pay requests are not submitted for ninety (90) days, financial status report shall be due, at a minimum, 15 calendar days from the end of the calendar year quarter. Attached as Exhibit "J", and incorporated herein by this reference as though fully set forth, is a sample financial status report. -11- 1 least one unit, of the total dwelling units shall be readily accessible to and usable by individuals with mobility impairments and two percent (2%), or at least one unit, of the total units shall be accessible to the hearing and/or visually impaired (see Attachment 5, CPD Notices 00-9, 02-03 and 00-10) attached hereto and incorporated herein). -9- • 5.05 Personnel and Participant Conditions. 5.05.1 Contract Compliance. Subrecipient shall be exempt from the Contract Compliance Clause and Section 10-196 of the City of Omaha Municipal Code as described in Attachment 4 herein. 5.05.2 Workers' Compensation. The Subrecipient shall provide Workers' Compensation Insurance coverage for all employees involved in the performance in this Agreement. 5.05.3 Minority Business/Women Business Enterprise Plan (MBE/WBE). The. Subrecipient shall make its best efforts to ensure that services, contracts and employment opportunities are affirmatively marketed to women and members of minority groups (Exhibit "D"). As used in this Agreement, the term "women and members of minority groups" means a business at least fifty-one percent (51%) owned and controlled and actively managed minority ethnic race or women members. Subrecipient shall submit to the Director for his review and approval a minority and women business participation plan which discusses economic development and employment opportunities. 5.05.4 Section 3 - Employment of Low-Income Persons (Section 3 of HUD Act of 68, as amended, 1 U.S.C. 1701u). The Subrecipient and its Developer(s) shall make their 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 (80% or below if MFI), particularly persons who are recipients of HUD assistance for housing. 5.05.5 Conflict of Interest. The Subrecipient 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 Subrecipient further covenants that in the performance of this Agreement no person having such a financial interest shall be employed or retained by the Subrecipient 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 Subrecipient or any designated public agencies or Developers which are receiving funds under the HOME entitlement program. SECTION 6. SUBRECIPIENT'S COMPLIANCE WITH OTHER FEDERAL REGULATIONS 6.01 Environmental Review. The Subrecipient agrees to comply with the following regulations insofar as they apply to the performance of this agreement: -12- he calendar year quarter. Attached as Exhibit "J", and incorporated herein by this reference as though fully set forth, is a sample financial status report. -11- 1 least one unit, of the total dwelling units shall be readily accessible to and usable by individuals with mobility impairments and two percent (2%), or at least one unit, of the total units shall be accessible to the hearing and/or visually impaired (see Attachment 5, CPD Notices 00-9, 02-03 and 00-10) attached hereto and incorporated herein). -9- 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. 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 forty-five (45) years old or older or that are included on a Federal, State or local historic property list. 6.02 Uniform Relocation Act. The Subrecipient 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 Subrecipient 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.FR. 92.353. 6.03 Fair Housing. Subrecipient shall provide fair housing services designed to further the fair housing objectives of the Fair Housing Act (42 U.S.C. 3601-20) by making all persons, without regard to race, color, religion, sex, national origin, familial or handicap status, aware of the range of housing opportunities available to them and provide fair housing enforcement, education and outreach activities designed to further the housing objective of avoiding undue concentrations of assisted persons in areas containing a high proportion of low and moderate income persons. -13- ons insofar as they apply to the performance of this agreement: -12- he calendar year quarter. Attached as Exhibit "J", and incorporated herein by this reference as though fully set forth, is a sample financial status report. -11- 1 least one unit, of the total dwelling units shall be readily accessible to and usable by individuals with mobility impairments and two percent (2%), or at least one unit, of the total units shall be accessible to the hearing and/or visually impaired (see Attachment 5, CPD Notices 00-9, 02-03 and 00-10) attached hereto and incorporated herein). -9- 6.04 Drug Free Workplace. Subrecipient shall continue to provide a drug-free workplace in accordance with 41 U.S.C. 702 and shall submit a Certification of the Drug Free Workplace, attached hereto as Exhibit "K", to the City prior to disbursement of funds. SECTION 7. RESPONSIBILITIES OF THE CITY OF OMAHA 7.01 Performance Monitoring. The City will monitor the performance standards of the Subrecipient 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 Subrecipient within a reasonable period of time after being notified by the City, contract suspension or termination procedures may be initiated. 7.02 Payments. It is expressly agreed and understood that the total amount to be paid by the City under this Agreement shall not exceed $172,894.00 in HOME 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 Subrecipient as soon as reasonably possible and the Agreement will be terminated. 7.02.1 Funds Allocated to the Subrecipient. Payments will be contingent on Duties and Conditions specified herein. Drawdowns for the payment of eligible expenses shall not be made until the funds are needed based upon the value of the construction, administration, or professional services work completed at the time the payment request is made. 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 Subrecipient 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 Unacceptable or substandard; or, 7.02.2.3 Not in accordance with this Agreement or related contracts as approved for this Project. 7.03 Progress Payments. Progress payments and final payment, as may be authorized by the Director or his designated representative, are subject to: -14- tion of low and moderate income persons. -13- ons insofar as they apply to the performance of this agreement: -12- he calendar year quarter. Attached as Exhibit "J", and incorporated herein by this reference as though fully set forth, is a sample financial status report. -11- 1 least one unit, of the total dwelling units shall be readily accessible to and usable by individuals with mobility impairments and two percent (2%), or at least one unit, of the total units shall be accessible to the hearing and/or visually impaired (see Attachment 5, CPD Notices 00-9, 02-03 and 00-10) attached hereto and incorporated herein). -9- 7.03.1 Receipt of Subrecipient's loan determination documents, copies of executed loan documents and eligibility documentation. 7.03.2 Receipt of documentation that property meets Property Standards in Section 4.07 herein. 7.04 Inspections. The Subrecipient shall perform final inspections to certify Project Completion prior to final disbursement of HOME proceeds. In addition, the Subrecipient shall perform on site inspections of Property every one to three years from project completion to ensure compliance with property standards (24 C.F.R. 92.504 (c)(4)(d)). 7.05 Technical Assistance. The Director shall assist the Subrecipient in the same manner the Director provides technical assistance to other Subrecipients during the construction phase to ensure compliance with such housing quality standards and property rehabilitation standards. SECTION 8. MUTUAL AGREEMENTS BETWEEN CITY AND SUBRECIPIENT. 8.01 Release of Information Laws. The Subrecipient 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 Subrecipient further agrees to indemnify and hold harmless the City for any liability arising out of the improper use by the Subrecipient 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. Iowa law will govern the term and the performance under this Agreement. 8.03 Interest of City. Pursuant to Section 8.05 of the Home Rule Charter, no elected official or any officer or employee of the City shall have a financial interest, direct or indirect, in any City agreement. Any violation of this section with the knowledge of the person or corporation contracting with the City shall render the Agreement voidable by the Mayor or Council. 8.04 Independent Contractor. Nothing contained in this Agreement is intended to, or shall be construed in any manner, as creating or establishing the relationship of employer/employee between the parties. The Subrecipient 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 Worker's Compensation Insurance as the Subrecipient is an Independent Contractor. -15- 1 least one unit, of the total dwelling units shall be readily accessible to and usable by individuals with mobility impairments and two percent (2%), or at least one unit, of the total units shall be accessible to the hearing and/or visually impaired (see Attachment 5, CPD Notices 00-9, 02-03 and 00-10) attached hereto and incorporated herein). -9- 8.05 Project Roles. The Subrecipient shall ensure that the Project meets the objectives stated herein. The City has selected the Subrecipient to assist in the Project since it is consistent with the Consolidated Plan. The City owes no duty to the Subrecipient 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 Subrecipient 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 without 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 "L", attached hereto and incorporated herein by this reference as though fully set forth). Upon termination of this Agreement, all funds and interest in any account hereunder shall become the property of the City and shall be returned to the City. 8.12 Reversion of Assets. Upon the expiration of this Agreement, the Subrecipient shall transfer to the City of Omaha any HOME funds on hand at the time of expiration and any accounts receivable attributable to the use of HOME funds (24 C.F.R. 92.504(c)(2)(vii)). 8.13 Indemnification. The Subrecipient 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 -16- and Worker's Compensation Insurance as the Subrecipient is an Independent Contractor. -15- 1 least one unit, of the total dwelling units shall be readily accessible to and usable by individuals with mobility impairments and two percent (2%), or at least one unit, of the total units shall be accessible to the hearing and/or visually impaired (see Attachment 5, CPD Notices 00-9, 02-03 and 00-10) attached hereto and incorporated herein). -9- provisions hereof or affecting the validity or enforceability of such provision in any other jurisdiction. 8.15 Disclosure of Lobbying. The Subrecipient 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 Subrecipient, 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 or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, the Subrecipient 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 be included in the award documents for all subawards at all tiers, (including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreements) and that all subrecipients shall certify and disclose accordingly. 8.16 Notices. The City and the Subrecipient 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: 2) Subrecipient: City of Omaha City of Council Bluffs Planning Department Community Development 1819 Farnam Street Department Director Room 1111 209 Pearl Street Omaha Nebraska 68183 Council Bluffs, Iowa 51503 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. -17- 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 -16- and Worker's Compensation Insurance as the Subrecipient is an Independent Contractor. -15- 1 least one unit, of the total dwelling units shall be readily accessible to and usable by individuals with mobility impairments and two percent (2%), or at least one unit, of the total units shall be accessible to the hearing and/or visually impaired (see Attachment 5, CPD Notices 00-9, 02-03 and 00-10) attached hereto and incorporated herein). -9- SECTION 9. DEFAULT PROVISIONS • 9.01 Remedies. If, through any cause, the Subrecipient 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 proceedings for any damages caused to the City by reason of such default and termination. IN WITNESS WHEREOF, the parties have executed this Agreement as of the date indicated below: CITY OF OMAHA, CITY OF COUNCIL BLUFFS, a Municipal Corporation a Municipal Corporatio)/A-A4:24 MAYOR OF THE C OF OMAHA MA , ITY C I BLUFFS ATTEST: :/‘). ATTES . aki/Litiv CLERK, CITY OF OMAHA C TY CLERK, 0 COUNCIL BLUFFS o2 (Acting) �/�� Date l9&f /3 Q0,� Date // APPROVED AS TO F/FO APPROVED AS TO FORM: 74lj/1 ! 7 27 c� NT CITY ATTORNEY D TE CITY AT ORNEY DATE CITY OF OMAHA CITY OF COUNCIL BLUFFS P:\PLN3\13640pjm.doc -18- grant, loan, or cooperative agreement, the Subrecipient 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 be included in the award documents for all subawards at all tiers, (including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreements) and that all subrecipients shall certify and disclose accordingly. 8.16 Notices. The City and the Subrecipient 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: 2) Subrecipient: City of Omaha City of Council Bluffs Planning Department Community Development 1819 Farnam Street Department Director Room 1111 209 Pearl Street Omaha Nebraska 68183 Council Bluffs, Iowa 51503 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. -17- 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 -16- and Worker's Compensation Insurance as the Subrecipient is an Independent Contractor. -15- 1 least one unit, of the total dwelling units shall be readily accessible to and usable by individuals with mobility impairments and two percent (2%), or at least one unit, of the total units shall be accessible to the hearing and/or visually impaired (see Attachment 5, CPD Notices 00-9, 02-03 and 00-10) attached hereto and incorporated herein). -9- SCHEDULE OF EXHIBITS Agreement Exhibit Location Description A 3.01.1, 5.01.1, 5.01.2, 5.02.1, and 5.04 OMB Circular A-110 B 1.13, 2.01 and 5.03.1.3 Median Family Income Chart C 1.15 Definition - Program Income D 5.05.3 MBE/WBE Policies E 4.08 Davis Bacon Federal Labor Standards (HUD 4010) F 4.11 Affirmative Marketing Policy G 1.11, 5.01.2 OMB Circular A-87 H 5.01.3 OMB Circular A-133 I 5.03.1 Tenant/Occupancy Report and Asset Forms J 5.04 Financial Status Reports K 6.04 Drug-Free Workplace Certification L 8.11 Termination- 24 C.F.R. 85.43 - 85.44 ATTACHMENTS: 1 City of Omaha Definition of Income 2 Equal Opportunity 3 Section 3 Clause 4 Exemption from Municipal. Code Section 10-196 5 CPD Notices 00-9, 02-03 and 00-10 6 Council Bluffs Project Funding Commitments 7 Subsidy Layering Standards P:\PLN3\13640pjm.doc -19- HA CITY OF COUNCIL BLUFFS P:\PLN3\13640pjm.doc -18- grant, loan, or cooperative agreement, the Subrecipient 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 be included in the award documents for all subawards at all tiers, (including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreements) and that all subrecipients shall certify and disclose accordingly. 8.16 Notices. The City and the Subrecipient 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: 2) Subrecipient: City of Omaha City of Council Bluffs Planning Department Community Development 1819 Farnam Street Department Director Room 1111 209 Pearl Street Omaha Nebraska 68183 Council Bluffs, Iowa 51503 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. -17- 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 -16- and Worker's Compensation Insurance as the Subrecipient is an Independent Contractor. -15- 1 least one unit, of the total dwelling units shall be readily accessible to and usable by individuals with mobility impairments and two percent (2%), or at least one unit, of the total units shall be accessible to the hearing and/or visually impaired (see Attachment 5, CPD Notices 00-9, 02-03 and 00-10) attached hereto and incorporated herein). -9- � `trtx y . r7rr ;mow • �, w� OFFICE OF r�` ,4-. • ., .r. .. ,K.. �.�. _.:.,. 4_...:....•.-',..w..... :..-.e.,-._..0 -`...�,. .•-.:. _-n....- .ra,. .....a.."n 7 v+ .,s.� .c'.n,.ma... ....._. w-.a _. ...••,• 4j,)1 MANAGEMENT AND BUDGET n'A CIRCULAR A-no REVISED 11/19/93 • As Further Amended 9/30/99 TO THE HEADS OF EXECUTIVE DEPARTMENTS AND ESTABLISHMENTS SUBJECT: Uniform Administrative Requirements for Grants and Agreements With Institutions of Higher Education, Hospitals, and Other Non- Profit Organizations 1. Purpose.This Circular sets forth standards for obtaining consistency and uniformity among Federal agencies in the administration of grants to and agreements with institutions of higher education, hospitals, and other non-profit organizations. 2.Authority. Circular A-110 is issued under the authority of 31 U.S.C. 503 (the Chief Financial Officers Act), 31 U.S.C. 1111, 41 U.S.C. 405 (the Office of Federal Procurement Policy Act), Reorganization Plan No. 2 of 1970, and E.O. 11541 ("Prescribing the Duties of the Office of Management and Budget and the Domestic Policy Council in the Executive Office of the President"). 3. Policy. Except as provided herein,the standards set forth in this Circular are applicable to all Federal agencies. If any statute specifically prescribes policies or specific requirements that differ from the standards provided herein,the provisions of the statute shall govern. The provisions of the sections of this Circular shall be applied by Federal agencies to recipients. Recipients shall apply the provisions of this Circular to subrecipients performing substantive work under grants and agreements that are passed through or awarded by the primary recipient, if such subrecipients are organizations described in paragraph 1. This Circular does not apply to grants,contracts,or other agreements between the Federal Government and units of State or local governments covered by OMB Circular A-102,"Grants and Cooperative Agreements with State and Local Governments,"and the Federal agencies'grants management common rule which standardized and codified the administrative requirements Federal agencies impose on State and local grantees. In addition, subawards and contracts to State or local governments are not covered by this Circular. However,this Circular applies to subawards 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. http://www.whitehouse.gov/omb/circulars/a110/al 10.html 6/23/2006 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 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 Subawards. 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. http://www.whitehouse.gov/omb/circulars/a110/al 10.html 6/23/2006 herein,the standards set forth in this Circular are applicable to all Federal agencies. If any statute specifically prescribes policies or specific requirements that differ from the standards provided herein,the provisions of the statute shall govern. The provisions of the sections of this Circular shall be applied by Federal agencies to recipients. Recipients shall apply the provisions of this Circular to subrecipients performing substantive work under grants and agreements that are passed through or awarded by the primary recipient, if such subrecipients are organizations described in paragraph 1. This Circular does not apply to grants,contracts,or other agreements between the Federal Government and units of State or local governments covered by OMB Circular A-102,"Grants and Cooperative Agreements with State and Local Governments,"and the Federal agencies'grants management common rule which standardized and codified the administrative requirements Federal agencies impose on State and local grantees. In addition, subawards and contracts to State or local governments are not covered by this Circular. However,this Circular applies to subawards 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. http://www.whitehouse.gov/omb/circulars/a110/al 10.html 6/23/2006 _.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. _.32 Real property. .33 Federally-owned and exempt property. • _.34 Equipment. _.35 Supplies and other expendable property. _.36 Intangible property. _.37 Property trust relationship. Procurement Standards .40 Purpose of procurement standards. .41 Recipient responsibilities. .42 Codes of conduct. .43 Competition. _.44 Procurement procedures. _.45 Cost and price analysis. _.46 Procurement records. .47 Contract administration. _.48 Contract provisions. • Reports and Records _.50 Purpose of reports and records. http://www.whitehouse.gov/omb/circulars/a 110/all 0.html 6/23/2006 ource 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. http://www.whitehouse.gov/omb/circulars/a110/al 10.html 6/23/2006 herein,the standards set forth in this Circular are applicable to all Federal agencies. If any statute specifically prescribes policies or specific requirements that differ from the standards provided herein,the provisions of the statute shall govern. The provisions of the sections of this Circular shall be applied by Federal agencies to recipients. Recipients shall apply the provisions of this Circular to subrecipients performing substantive work under grants and agreements that are passed through or awarded by the primary recipient, if such subrecipients are organizations described in paragraph 1. This Circular does not apply to grants,contracts,or other agreements between the Federal Government and units of State or local governments covered by OMB Circular A-102,"Grants and Cooperative Agreements with State and Local Governments,"and the Federal agencies'grants management common rule which standardized and codified the administrative requirements Federal agencies impose on State and local grantees. In addition, subawards and contracts to State or local governments are not covered by this Circular. However,this Circular applies to subawards 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. http://www.whitehouse.gov/omb/circulars/a110/al 10.html 6/23/2006 l_ALCUlii.l 1VU. t>-11U -- U1111U1111 tiu1111111JU.auvL.l\.Vliuttl.tl1l.ttw 1111 \J1411LJ u.uu, _.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. (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 http://www.whitehouse.gov/omb/circulars/al 10/al 10.html 6/23/2006 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. http://www.whitehouse.gov/omb/circulars/a110/al 10.html 6/23/2006 '✓11VN1U.1 V. 11 1 1 V -- 1J111J.V11J1. 1 11J1L1L111ULJ LL1L r lvl V1 4.4.11.11-1 Jcb. ... a Kbv ✓ va ✓v • 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. (1)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 renuir&d. http://www.whitehouse.gov/omb/circulars/a 110/al10.html 6/23/2006 i, lrcutar 1VO. A-1 lU -- U1111U1111 ttU1111111SL1 did VG itcqu11c111ci1Ls .Ul kJI al1LJ auu ,r1,51111111 LLW ... 1 u�j'. v VA_ v • • (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 if the agreement is called a contract, but does not include procurement of goods and services nor does it include any form of assistance which is excluded from the definition of"award" in paragraph (e). (gg) Subrecipient means the legal entity to which a subaward is made and which is accountable to the recipient for the use of the funds provided.The term may include foreign or international organizations(such as agencies of the United Nations)at the discretion of the Federal awarding agency. (hh)Supplies means all personal property excluding equipment, intangible property, and debt instruments as defined in this section, and inventions of a contractor conceived or first actually reduced to practice in the performance of work 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 (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 .4. _.4 Deviations.The Office of Management and Budget(OMB) may grant exceptions for classes of grants or recipients subject to the requirements of this Circular when exceptions are not prohibited by statute. However, in the interest of maximum uniformity, exceptions from the requirements of this Circular shall be permitted only in unusual circumstances. Federal awarding agencies may apply more restrictive requirements to a class of recipients when approved by OMB. Federal awarding agencies may apply less restrictive requirements when awarding small awards, except for those requirements which are statutory. Exceptions on a case-by-case basis may also be made by Federal awarding agencies. _.5 Subawards. Unless sections of this Circular specifically exclude subrecipients from coverage,the provisions of this Circular shall be applied to subrecipients performing work under awards if such subrecipients are institutions of higher education, hospitals or other non-profit organizations. State and local government subrecipients are subject to the provisions of regulations implementing the grants management common rule,"Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments,"published at 53 FR 8034 (3/11/88). SUBPART B-Pre-Award Requirements _.10 Purpose.Sections_.11 through .17 prescribes forms and instructions and other pre-award matters to be used in applying for Federal awards. _.11 Pre-award policies. (a)Use of Grants and Cooperative Agreements, and Contracts. In each instance,the Federal awarding agency shall decide on the appropriate award instrument(i.e.,grant, cooperative agreement,or contract).The Federal Grant and Cooperative Agreement Act(31 U.S.C.6301-08)governs the use of grants,cooperative agreements and contracts. A grant or cooperative agreement shall be used only when the principal purpose of a transaction is to accomplish a public purpose of support or stimulation authorized by Federal statute.The statutory criterion for choosing between grants and cooperative agreements is that for the latter,"substantial involvement is expected between the executive agency and the State, local government,or other recipient when carrying out the activity contemplated in the agreement."Contracts shall be used when the principal purpose is acquisition of property or services for the direct http://www.whitehouse.gov/omb/circulars/a 110/a 110.html 6/23/2006 ipment, 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 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 l UUC,Uid1 INO. IA,-11V -- V1111 01 1 11 t111111111S11cLL1VG 1\GLIU-11Lll1L11LJ lvt J1CL11L3 ... 1 ub. .• • 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. (a) Federal awarding agencies shall comply with the applicable report clearance requirements of 5 CFR part 1320, "Controlling Paperwork Burdens on the Public,"with regard to all forms used by the Federal awarding agency in place of or as a supplement to the Standard Form 424 (SF-424)series. (b)Applicants shall use the SF-424 series or those forms and instructions prescribed by the Federal awarding agency. (c) For Federal programs covered by E.O. 12372, "Intergovernmental Review of Federal Programs,"the applicant shall complete the appropriate sections of the SF-424 (Application for Federal Assistance) indicating whether the application was subject to review by the State Single Point of Contact(SPOC).The name and address of the SPOC for a particular State can be obtained from the Federal awarding agency or the Catalog of Federal Domestic Assistance.The SPOC shall advise the applicant whether the program for which application is made has been selected by that State for review. (d) Federal awarding agencies that do not use the SF-424 form should indicate whether the application is subject to review by the State under E.O. 12372. _.13 Debarment and suspension. Federal awarding agencies and recipients shall comply with the nonprocurement debarment and suspension common rule implementing E.O.s 12549 and 12689,"Debarment and Suspension."This common rule restricts subawards and contracts with certain parties that are debarred, suspended or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. _.14 Special award conditions. If an applicant or recipient: (a)has a history of poor performance, (b)is not financially stable, (c) has a management system that does not meet the standards prescribed in this Circular, (d) has not conformed to the terms and conditions of a previous award, or(e)is not otherwise responsible, Federal awarding agencies may impose additional requirements as needed, provided that such applicant or recipient is notified in writing as to:the nature of the additional requirements,the reason why the additional requirements are being imposed,the nature of the corrective action needed,the time allowed for completing the corrective actions, and the method for requesting reconsideration of the additional requirements imposed. Any special conditions shall be promptly removed once the conditions that prompted them have been corrected. _.15 Metric system of measurement.The Metric Conversion Act, as amended by the Omnibus Trade and Competitiveness Act (15 U.S.C. 205)declares that the metric system is the preferred measurement system for U.S. trade and commerce.The Act requires each Federal agency to establish a date or dates in consultation with the Secretary of Commerce,when the metric system of measurement will be used in the agency's procurements, grants, and other business-related activities. Metric implementation may take longer where the use of the system is initially impractical or likely to cause significant inefficiencies in the accomplishment of federally-funded activities. Federal awarding agencies shall follow the provisions of E.O. 12770,"Metric Usage in Federal Government Programs." _.16 Resource Conservation and Recovery Act(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 http://www.whitehouse.gov/omb/circulars/a110/al 1 0.html 6/23/2006 Contracts,and http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 V111+U141 1VV. A-11 V -- V1111V1111 2'1LL1111111JL1 U1.1• •.SS J uaa�.a a .vva.a%.A- ? ... .....�... i ..� . • 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. (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,allocability and allowability of costs in accordance with the provisions of the applicable Federal cost principles and the terms and conditions of the award. (7)Accounting records including cost accounting records that are supported by source documentation. (c)Where the Federal Government guarantees or insures the repayment of money borrowed by the recipient,the Federal awarding agency, at its discretion,may require adequate bonding and insurance if the bonding and insurance requirements of the recipient are not deemed adequate to protect the interest of the Federal Government. (d)The Federal awarding agency may require adequate fidelity bond coverage where the recipient lacks sufficient coverage to protect the Federal Government's interest. (e)Where bonds are required in the situations described above,the bonds 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. http://www.whitehouse.gov/omb/circulars/al 10/al 10.html 6/23/2006 e 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 http://www.whitehouse.gov/omb/circulars/a110/al 1 0.html 6/23/2006 Contracts,and http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 (—iretuar INO. A-11U -- uI1110r111 f.ui111111J11cluv clliciiw ivi viaiit.� (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. (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. http://www.whitehouse.gov/omb/circulars/a110/a110.html 6/23/2006 d 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 http://www.whitehouse.gov/omb/circulars/a110/al 1 0.html 6/23/2006 Contracts,and http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 L.114Uia'1'IN V. ?I.-1 1 V -- L11111V111.1 ALL1111111J LI CLL1 V L.+1\.1-+l1 U11 Vil 1l+11LJ 1V1 V14111.0 CAllLL 11b1v�+111\+11... 1 LLbv 11 (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." (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. http://www.whitehouse.gov/omb/circulars/a110/al 1 0.html 6/23/2006 ederal 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. http://www.whitehouse.gov/omb/circulars/a110/a110.html 6/23/2006 d 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 http://www.whitehouse.gov/omb/circulars/a110/al 1 0.html 6/23/2006 Contracts,and http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 Circular No. A-110 -- Uniform Administrative Requirements for urants anu tigreenle11... r a,c 1 o1 v (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. (f) Donated supplies may include such items as expendable equipment,office supplies, laboratory supplies or workshop and classroom supplies.Value assessed to donated supplies included in the cost sharing or matching share shall be reasonable and shall not exceed the fair market value of the property at the time of the donation. (g)The method used for determining cost sharing or matching for donated equipment, buildings and land for which title passes to the recipient may differ according to the purpose of the award, if(1)or(2)apply. (1) If the purpose of the award is to assist the recipient in the acquisition of equipment, buildings or land,the total value of the donated property may be claimed as cost sharing or matching. (2) If the purpose of the award is to support activities that require the use of equipment, buildings or land, normally only depreciation or use charges for equipment and buildings may be made. However,the full value of equipment or other capital assets and fair rental charges for land may be allowed, provided that the Federal awarding agency has approved the charges. (h)The value of donated property shall be determined in accordance with the usual accounting policies of the • recipient,with the following qualifications. (1)The value of donated land and buildings shall not exceed its fair market value at the time of donation to the recipient as established by an independent appraiser(e.g., certified real property appraiser or General Services Administration representative)and certified by a responsible official of the recipient. (2)The value of donated equipment shall not exceed the fair market value of equipment of the same age and condition at the time of donation. (3)The value of donated space shall not exceed the fair rental value of comparable space as established by an independent appraisal of comparable space and facilities in a privately-owned building in the same • locality. http://www.whitehouse.gov/omb/circulars/a110/a110.html 6/23/2006 rnment is liquidated. (i)Standards governing the use of banks and other institutions as depositories of funds advanced under awards are as follows. http://www.whitehouse.gov/omb/circulars/a110/a110.html 6/23/2006 d 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 http://www.whitehouse.gov/omb/circulars/a110/al 1 0.html 6/23/2006 Contracts,and http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 �LlV4LLL1 1YV. l 1.- 1 v V 1�Vy uli VLLAVLALV Zvi VaLL11�V ualu 1 isa VViai VaL... A. u„ v a✓ Q.A. ✓.. • • (4)The value of loaned equipment shall not exceed its fair rental value. (5)The following requirements pertain to the recipients 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. (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. http://www.whitehouse.gov/omb/circulars/a 110/a 110.html 6/23/2006 ir 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. http://www.whitehouse.gov/omb/circulars/a110/a110.html 6/23/2006 rnment is liquidated. (i)Standards governing the use of banks and other institutions as depositories of funds advanced under awards are as follows. http://www.whitehouse.gov/omb/circulars/a110/a110.html 6/23/2006 d 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 http://www.whitehouse.gov/omb/circulars/a110/al 1 0.html 6/23/2006 Contracts,and http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 1..111-LL1d1 1NO. t1-11V -- VIL It/1111 A1111.111113 LI Q L1 1\1.+4u111.111\+1rLJ JVl \_I1(1r11.J C JJ.. a/51 ...i .. • • (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. (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. (4) For awards that support research, unless the Federal awarding agency provides otherwise in the award or http://www.whitehouse.gov/omb/circulars/a110/al l 0.html 6/23/2006 ation purposes whenever appropriate. http://www.whitehouse.gov/omb/circulars/a 110/a 110.html 6/23/2006 ir 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. http://www.whitehouse.gov/omb/circulars/a110/a110.html 6/23/2006 rnment is liquidated. (i)Standards governing the use of banks and other institutions as depositories of funds advanced under awards are as follows. http://www.whitehouse.gov/omb/circulars/a110/a110.html 6/23/2006 d 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 http://www.whitehouse.gov/omb/circulars/a110/al 1 0.html 6/23/2006 Contracts,and http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 \✓L1 lJUlU1 1'V V. 11 k 1.U -- V1a11V1 all L LL11111111JLJULL V L..L\V1..1 U11 V111V11 LU 1,1 VL UIILJ Ullll 11L1 VV111 V11... 1 UrVv ♦✓ va ✓v in the agency's regulations,the prior approval requirements described in paragraph (e) are automatically waived (i.e., recipients need not obtain such prior approvals) unless one of the conditions included in paragraph (e)(2)applies. (f)The Federal awarding agency may, at its option, restrict the transfer of funds among direct cost categories or programs,functions and activities for awards in which the Federal share of the project exceeds $100,000 and the cumulative amount of such transfers exceeds or is expected to exceed 10 percent of the total budget as last approved by the Federal awarding agency. No Federal awarding agency shall permit a transfer that would cause any Federal appropriation or part thereof to be used for purposes other than those consistent with the original intent of the appropriation. • (g)All other changes to nonconstruction budgets, except for the changes described in paragraph (j), do not require prior approval. (h) For construction awards, recipients shall request prior written approval promptly from Federal awarding agencies for budget revisions whenever(1), (2)or(3)apply. (1)The revision results from changes in the scope or the objective of the project or program. (2)The need arises for additional Federal funds to complete the project. (3)A revision is desired which involves specific costs for which prior written approval requirements may be imposed consistent with applicable OMB cost principles listed in Section .27. (i) No other prior approval requirements for specific items may be imposed unless a deviation has been approved by OMB. (j)When a Federal awarding agency makes an award that provides support for both construction and nonconstruction work, the Federal awarding agency may require the recipient to request prior approval from the Federal awarding agency before making any fund or budget transfers between the two types of work supported. (k) For both construction and nonconstruction awards, Federal awarding agencies shall require recipients to notify the Federal awarding agency in writing promptly whenever the amount of Federal authorized funds is expected to exceed the needs of the recipient for the project period by more than$5000 or five percent of the Federal award, whichever is greater.This notification shall not be required if an application for additional funding is submitted for a continuation award. (I)When requesting approval for budget revisions, recipients shall use the budget forms that were used in the application unless the Federal awarding agency indicates a letter of request suffices. (m)Within 30 calendar days from the date of receipt of the request for budget revisions, Federal awarding agencies shall review the request and notify the recipient whether the budget revisions have been approved. If the revision is still under consideration at the end of 30 calendar days,the Federal awarding agency shall inform the recipient in writing of the date when the recipient may expect the decision. .26 Non-Federal audits. (a) Recipients and subrecipients that are institutions of higher education or other non-profit organizations(including hospitals)shall be subject to the audit requirements contained in the Single Audit Act Amendments of 1996 (31 USC 7501-7507)and revised OMB Circular A-133,"Audits of States, Local Governments, and Non-Profit Organizations." (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. http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 in the same • locality. http://www.whitehouse.gov/omb/circulars/a110/a110.html 6/23/2006 rnment is liquidated. (i)Standards governing the use of banks and other institutions as depositories of funds advanced under awards are as follows. http://www.whitehouse.gov/omb/circulars/a110/a110.html 6/23/2006 d 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 http://www.whitehouse.gov/omb/circulars/a110/al 1 0.html 6/23/2006 Contracts,and http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 urcular No. A-11U -- uniIorm HUrr111115LIauuVG 1<G9LLi1G1I1 11LJ 101 Vlailw auu n51 11L.ii.•• us. �- • .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 Administrative Requirements for Grants and Agreements with Institutions of Higher Education, Hospitals, and Other Non-Profit Organizations,"and the agencies'grants management common rule. (c)When a Federal agency provides this flexibility, as a prerequisite to a State's exercising this option, a State must adopt its own written fiscal and administrative requirements for expending and accounting for all funds,which are consistent with the provisions of OMB Circular A-87, and extend such policies to all subrecipients.These fiscal and administrative requirements must be sufficiently specific to ensure that:funds are used in compliance with all applicable Federal statutory and regulatory provisions, costs are reasonable and necessary for operating these programs, and funds are not be used for general expenses required to carry out other responsibilities of a State or its subrecipients. Property Standards _.30 Purpose of property standards. Sections_.31 through .37 set forth uniform standards governing management and disposition of property furnished by the Federal Government whose cost was charged to a project supported by a Federal award. Federal awarding agencies shall require recipients to observe these standards under 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. http://www.whitehouse.gov/omb/circulars/a110/al 1 0.html 6/23/2006 v411.11 1 V. 1 1'1 1 V V 1111,11111 1 1*L1111111U L14 u v V L\V1..1411 v111va11•0 1vL V 1 4114.J 4.41.1v a 151 vv111vi1... L 4bv 1 v1 .1 • (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. _.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. http://www.whitehouse.gov/omb/circul ars/a 110/al 1 0.html 6/23/2006 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. http://www.whitehouse.gov/omb/circulars/a110/al 1 0.html 6/23/2006 Circular No. A-11 U -- Uniform Administrative rcequiremenis ior k_rranis allu 2- g1 eeuicu... r age t o ur -IV (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). (vii)Location and condition of the equipment and the date the information was reported. (viii) Unit acquisition cost. (ix) Ultimate disposition data, including date of disposal and sales price or the method used to determine current fair market value where a recipient compensates the Federal awarding agency for its share. (2) Equipment owned by the Federal Government shall be identified to indicate Federal ownership. (3)A physical inventory of equipment shall be taken and the results reconciled with the equipment records at least once every two years.Any differences between quantities determined by the physical inspection and those shown in the accounting records shall be investigated to determine the causes of the difference.The recipient shall, in connection with the inventory,verify the existence, current utilization, and continued need for the equipment. (4)A control system shall be in effect to insure adequate safeguards to prevent loss, damage, or theft of the equipment.Any loss, damage, or theft of equipment shall be investigated and fully documented; if the equipment was owned by the Federal Government,the recipient shall promptly notify the Federal awarding agency. (5)Adequate maintenance procedures shall be implemented to keep the equipment in good condition. (6)Where the recipient is authorized or required to sell the equipment, proper sales procedures shall be established which provide for competition to the extent practicable and result in the highest possible return. (g)When the recipient no longer needs the equipment,the equipment may be used for other activities in accordance with the following standards. For equipment with a current per unit fair market value of$5000 or more,the recipient http://www.whitehouse.gov/omb/circulars/a110/al 10.html 6/23/2006 (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. http://www.whitehouse.gov/omb/circul ars/a 110/al 1 0.html 6/23/2006 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. http://www.whitehouse.gov/omb/circulars/a110/al 1 0.html 6/23/2006 1.,11c1ua1-INV. A-11V _- U1111 0 1 1 11 .t-iuu 1111J11 auvc 1\cLgL111c111cuLJ 101 .J1a11w a11u t. ,icci11c11... ra6c 17 V1 .JV may retain the equipment for other uses provided that compensation is made to the original Federal awarding agency or its successor.The amount of compensation shall be computed by applying the percentage of Federal participation in the cost of the original project or program to the current fair market value of the equipment. If the recipient has no need for the equipment, the recipient shall request disposition instructions from the Federal awarding agency.The Federal awarding agency shall determine whether the equipment can be used to meet the agency's requirements. If no requirement exists within that agency,the availability of the equipment shall be reported to the General Services Administration by the Federal awarding agency to determine whether a requirement for the equipment exists in other Federal agencies.The Federal awarding agency shall issue instructions to the recipient no later than 120 calendar days after the recipient's request and the following procedures shall govern. (1) If so instructed or if disposition instructions are not issued within 120 calendar days after the recipient's request,the recipient shall sell the equipment and reimburse the Federal awarding agency an amount computed by applying to the sales proceeds the percentage of Federal participation in the cost of the original project or program. However,the recipient shall be permitted to deduct and retain from the Federal share $500 or ten percent of the proceeds,whichever is less,for the recipient's selling and handling expenses. (2) If the recipient is instructed to ship the equipment elsewhere,the recipient shall be reimbursed by the Federal Government by an amount which is computed by applying the percentage of the recipient's participation in the cost of the original project or program to the current fair market value of the equipment, plus any reasonable shipping or interim storage costs incurred. (3) If the recipient is instructed to otherwise dispose of the equipment,the recipient shall be reimbursed by the Federal awarding agency for such costs incurred in its disposition. (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." http://www.whitehouse.gov/omb/circulars/a110/a110.html 6/23/2006 erning 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. http://www.whitehouse.gov/omb/circulars/a110/al 1 0.html 6/23/2006 Circular No. A-110 -- Uniform Administrative Requirements tor Urants and Agreemen... rage .zU or sU (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)). (2)The following definitions apply for purposes of paragraph (d)of this section: (i) Research data is defined as the recorded factual material commonly accepted in the scientific community as necessary to validate research findings, but not any of the following: preliminary analyses,drafts of scientific papers, plans for future research, peer reviews,or communications with colleagues.This"recorded"material excludes physical objects(e.g., laboratory samples). Research data also do not include: (A)Trade secrets, commercial information,materials necessary to be held confidential by a researcher until they are published, or similar information which is protected under law; and (B)Personnel and medical information and similar information the disclosure of which would constitute a clearly unwarranted invasion of personal privacy, such as information that could be used to identify a particular person in a research study. (ii) Published is defined as either when: (A)Research findings are published in a peer-reviewed scientific or technical journal; or (B)A Federal agency publicly and officially cites the research findings in support of an agency action that has the force and effect of law. (iii) Used by the Federal Government in developing an agency action that has the force and effect of law is defined as when an agency publicly and officially cites the research findings in support of an agency action that has the force and effect of law. (e)Title to intangible property and debt instruments acquired under an award or subaward vests upon acquisition in the recipient.The recipient shall use that property for the originally-authorized purpose,and the recipient shall not encumber the property without approval of the Federal awarding agency.When no longer needed for the originally authorized purpose, disposition of the intangible property shall occur in accordance with the provisions of paragraph _.34(g). _.37 Property trust relationship. Real property,equipment, intangible property and debt instruments that are acquired or improved with Federal funds shall be held in trust by the recipient as trustee for the beneficiaries of the project or program under which the property was acquired or improved.Agencies may require recipients to record liens or other appropriate notices of record to indicate that personal or real property has been acquired or improved with Federal funds and that use and disposition conditions apply to the property. Procurement Standards _.40 Purpose of procurement standards. Sections_.41 through .48 set forth standards for use by recipients in establishing procedures for the procurement of supplies and other expendable property, equipment, real property and other services with Federal funds.These standards are furnished to ensure that such materials and services are obtained in an effective manner and in compliance with the provisions of applicable Federal statutes and executive orders. No additional procurement standards or requirements shall be imposed by the Federal awarding agencies upon recipients, unless specifically required by Federal statute or executive order or approved by OMB. http://www.whitehouse.gov/omb/circulars/a110/al 10.html 6/23/2006 rposes, 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." http://www.whitehouse.gov/omb/circulars/a110/a110.html 6/23/2006 erning 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. http://www.whitehouse.gov/omb/circulars/a110/al 1 0.html 6/23/2006 \.•11Vu1LL1 1NV. 1.- 1. -- V1111Vi1,LI.111111111110L1 CAL./V 1\L•.1U11 L•111N11 La 1.J1 V1 U11LJ U11L1 LZ,51 V.L,111L•Ll... 1 45L, L.1 V1 JV • .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 substantial or the gift is an unsolicited item of nominal value.The standards of conduct shall provide for disciplinary actions to be applied for violations of such standards by officers,employees,or agents of the recipient. • _.43 Competition. All procurement transactions shall be conducted in a manner to provide,to the maximum extent practical,open and free competition.The recipient shall be alert to organizational conflicts of interest as well as noncompetitive practices among contractors that may restrict or eliminate competition or otherwise restrain trade. In order to ensure objective contractor performance and eliminate unfair competitive advantage, contractors that develop or draft specifications, requirements, statements of work, invitations for bids and/or requests for proposals shall be excluded from competing for such procurements.Awards shall be made to the bidder or offeror whose bid or offer is responsive to the solicitation and is most advantageous to the recipient, price, quality and other factors considered. Solicitations shall clearly set forth all requirements that the bidder or offeror shall fulfill in order for the bid or offer to be evaluated by the recipient.Any and all bids or offers may be rejected when it is in the recipient's interest to do so. _.44 Procurement procedures. (a)All recipients shall establish written procurement procedures.These procedures shall provide for, at a minimum, that(1), (2) and (3)apply. (1) Recipients avoid purchasing unnecessary items. (2)Where appropriate, an analysis is made of lease and purchase alternatives to determine which would be the most economical and practical procurement for the Federal Government. (3)Solicitations for goods and services provide for all of the following. (i)A clear and accurate description of the technical requirements for the material, product or service to be procured. In competitive procurements, such a description shall not contain features which unduly restrict competition. (ii) Requirements which the bidder/offeror must fulfill and all other factors to be used in evaluating bids or proposals. (iii)A description,whenever practicable, of technical requirements in terms of functions to be performed or performance required,including the range of acceptable characteristics or minimum acceptable standards. (iv)The specific features of"brand name or equal"descriptions that bidders are required to meet when such items are included in the solicitation. (v)The acceptance, to the extent practicable and economically feasible,of products and services dimensioned in the metric system of measurement. (vi) Preference,to the extent practicable and economically feasible,for products and services that conserve natural resources and protect the environment and are energy efficient. http://www.whitehouse.gov/omb/circulars/al 10/al l0.html 6/23/2006 t-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." http://www.whitehouse.gov/omb/circulars/a110/a110.html 6/23/2006 erning 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. http://www.whitehouse.gov/omb/circulars/a110/al 1 0.html 6/23/2006 L.iiL.U1a1 INV. C1'11 V -- 1J1111011.11 ALL1111111JLI at'V 1\1.L1 U111J111t.LLJ 1V1 L11411LJ 41111 176,11.v1111.11... 1 45‘, • (b) Positive efforts shall be made by recipients to utilize small businesses, minority-owned firms,and women's business enterprises,whenever possible. Recipients of Federal awards shall take all of the following steps to further this goal. (1) Ensure that small businesses, minority-owned firms, and women's business enterprises are used to the fullest extent practicable. (2) Make information on forthcoming opportunities available and arrange time frames for purchases and contracts to encourage and facilitate participation by small businesses, minority-owned firms,and women's business enterprises. (3)Consider in the contract process whether firms competing for larger contracts intend to subcontract with small businesses, minority-owned firms, and women's business enterprises. (4) Encourage contracting with consortiums of small businesses, minority-owned firms and women's business enterprises when a contract is too large for one of these firms to handle individually. (5) Use the services and assistance, as appropriate,of such organizations as the Small Business Administration and the Department of Commerce's Minority Business Development Agency in the solicitation and utilization of small businesses, minority-•owned firms and women's business enterprises. (c)The type of procuring instruments used (e.g.,fixed price contracts,cost reimbursable contracts, purchase orders, and incentive contracts)shall be determined by the recipient but shall be appropriate for the particular procurement and for promoting the best interest of the program or project involved.The"cost-plus-a-percentage-of-cost" or "percentage of construction cost" methods of contracting shall not be used. (d)Contracts shall be made only with responsible contractors who possess the potential ability to perform successfully under the terms and conditions of the proposed procurement. Consideration shall be given to such matters as contractor integrity, record of past performance,financial and technical resources or accessibility to other necessary resources. In certain circumstances, contracts with certain parties are restricted by agencies' implementation of E.O.s 12549 and 12689,"Debarment and Suspension." (e) Recipients shall, on request, make available for the Federal awarding agency, pre-award review and procurement documents, such as request for proposals or invitations for bids, independent cost estimates, etc.,when any of the following conditions apply. (1)A recipient's procurement procedures or operation fails to comply with the procurement standards in the Federal awarding agency's implementation of this Circular. (2)The procurement is expected to exceed the small purchase threshold fixed at 41 U.S.C.403(11) (currently$25,000)and is to be awarded without competition or only one bid or offer is received in response to a solicitation. (3)The procurement,which is expected to exceed the small purchase threshold,specifies a"brand name" product. (4)The proposed award over the small purchase threshold is to be awarded to other than the apparent low bidder under a sealed bid procurement. (5)A proposed contract modification changes the scope of a contract or increases the contract amount by more than the amount of the small purchase threshold. .45 Cost and price analysis. Some form of cost or price analysis shall be made and documented in the procurement files in connection with every procurement action.Price analysis may be accomplished in various ways, including the comparison of price quotations submitted, market prices and similar indicia, together with discounts. Cost analysis is the review and evaluation of each element of cost to determine reasonableness, allocability and allowability. _.46 Procurement records.Procurement records and files for purchases in excess of the small purchase threshold shall include the following at a minimum: (a) basis for contractor selection, (b)justification for lack of competition when competitive bids or offers are not obtained,and (c)basis for award cost or price. http://www.whitehouse.gov/omb/circulars/a110/al 1 0.html 6/23/2006 citation. (v)The acceptance, to the extent practicable and economically feasible,of products and services dimensioned in the metric system of measurement. (vi) Preference,to the extent practicable and economically feasible,for products and services that conserve natural resources and protect the environment and are energy efficient. http://www.whitehouse.gov/omb/circulars/al 10/al l0.html 6/23/2006 t-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." http://www.whitehouse.gov/omb/circulars/a110/a110.html 6/23/2006 erning 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. http://www.whitehouse.gov/omb/circulars/a110/al 1 0.html 6/23/2006 _.47 Contract administration.A system for contract administration shall be maintained to ensure contractor conformance with the terms, conditions and specifications of the contract and to ensure adequate and timely follow up of all purchases. Recipients shall evaluate contractor performance and document,as appropriate,whether contractors have met the terms, conditions and specifications of the contract. .48 Contract provisions. The recipient shall include, in addition to provisions to define a sound and complete agreement,the following provisions in all contracts.The following provisions shall also be applied to subcontracts. (a)Contracts in excess of the small purchase threshold shall contain contractual provisions or conditions that allow for administrative, contractual, or legal remedies in instances in which a contractor violates or breaches the contract terms, and provide for such remedial actions as may be appropriate. (b)All contracts in excess of the small purchase threshold shall contain suitable provisions for termination by the recipient, including the manner by which termination shall be effected and the basis for settlement. In addition, such contracts shall describe conditions under which the contract may be terminated for default as well as conditions where the contract may be terminated because of circumstances beyond the control of the contractor. (c) Except as otherwise required by statute, an award that requires the contracting (or subcontracting)for construction or facility improvements shall provide for the recipient to follow its own requirements relating to bid guarantees, performance bonds, and payment bonds unless the construction contract or subcontract exceeds $100,000. For those contracts or subcontracts exceeding$100,000,the Federal awarding agency may accept the bonding policy and requirements of the recipient, provided the Federal awarding agency has made a determination that the Federal Government's interest is adequately protected. If such a determination has not been made, the minimum requirements shall be as follows. (1)A bid guarantee from each bidder equivalent to five percent of the bid price.The"bid guarantee" shall consist of a firm commitment such as a bid bond,certified check,or other negotiable instrument accompanying a bid as assurance that the bidder shall, upon acceptance of his bid,execute such contractual documents as may be required within the time specified. (2)A performance bond on the part of the contractor for 100 percent of the contract price. A"performance bond"is one executed in connection with a contract to secure fulfillment of all the contractor's obligations under such contract. (3)A payment bond on the part of the contractor for 100 percent of the contract price.A"payment bond"is one executed in connection with a contract to assure payment as required by statute of all persons supplying labor and material in the execution of the work provided for in the contract. (4)Where bonds are required in the situations described herein,the bonds shall be obtained from companies holding certificates of authority as acceptable sureties pursuant to 31 CFR part 223, "Surety Companies Doing Business with the United States." (d)All negotiated contracts(except those for less than the small purchase threshold)awarded by recipients shall include a provision to the effect that the recipient,the Federal awarding agency, the Comptroller General of the United States,or any of their duly authorized representatives, shall have access to any books, documents, papers and records of the contractor which are directly pertinent to a specific program for the purpose of making audits, examinations, excerpts and transcriptions. (e)All contracts, including small purchases, awarded by recipients and their contractors shall contain the procurement provisions of Appendix A to this Circular,as applicable. Reports and Records _.50 Purpose of reports and records. Sections_.51 through_.53 set forth the procedures for monitoring and reporting on the recipient's financial and program performance and the necessary standard reporting forms. They also set forth record retention requirements. .51 Monitoring and reporting program performance. (a) Recipients are responsible for managing and monitoring each project, program,subaward,function or activity supported by the award. Recipients shall monitor subawards to ensure subrecipients have met the audit rant,iromontc oe rlolinootorl in Cortinn ')A http://www.whitehouse.gov/omb/circulars/a110/a110.html 6/23/2006 ttp://www.whitehouse.gov/omb/circulars/al 10/al l0.html 6/23/2006 t-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." http://www.whitehouse.gov/omb/circulars/a110/a110.html 6/23/2006 erning 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. http://www.whitehouse.gov/omb/circulars/a110/al 1 0.html 6/23/2006 Circular No. A-11U -- Uniform Administrative requirements for UrarlLS WILL.ftgicciucii... ra ,c (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-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 awardina aoencv shall renuire recinients to submit the SF-269 or SF-269A (an http://www.whitehouse.gov/omb/circul ars/al 10/all 0.htm1 6/23/2006 reporting on the recipient's financial and program performance and the necessary standard reporting forms. They also set forth record retention requirements. .51 Monitoring and reporting program performance. (a) Recipients are responsible for managing and monitoring each project, program,subaward,function or activity supported by the award. Recipients shall monitor subawards to ensure subrecipients have met the audit rant,iromontc oe rlolinootorl in Cortinn ')A http://www.whitehouse.gov/omb/circulars/a110/a110.html 6/23/2006 ttp://www.whitehouse.gov/omb/circulars/al 10/al l0.html 6/23/2006 t-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." http://www.whitehouse.gov/omb/circulars/a110/a110.html 6/23/2006 erning 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. http://www.whitehouse.gov/omb/circulars/a110/al 1 0.html 6/23/2006 v lavulul 1 a a a a V V1111fa11 A, a aLL1.111111 U 1.1 Wll v V 1\Vfi Lall VlllVlllJ lfll V14111.0 411f1 17 YJ1 f+V111 fall... 1 45V L✓ Vl ✓V 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. (i)When funds are advanced to recipients the Federal awarding agency shall require each recipient to submit the SF-272 and,when necessary, its continuation sheet, SF-272a. The Federal awarding agency shall use this report to monitor cash advanced to recipients and to obtain disbursement information for each agreement with the recipients. • (ii) Federal awarding agencies may require forecasts of Federal cash requirements in the"Remarks" section of the report. (iii)When practical and deemed necessary, Federal awarding agencies may require recipients to report in the"Remarks"section the amount of cash advances received in excess of three days. Recipients shall provide short narrative explanations of actions taken to reduce the excess balances. (iv) Recipients shall be required to submit not more than the original and two copies of the SF-272 15 calendar days following the end of each quarter. The Federal awarding agencies may require a monthly report from those recipients receiving advances totaling$1 million or more per year. (v) Federal awarding agencies may waive the requirement for submission of the SF-272 for any one of the following reasons: (1)When monthly advances do not exceed $25,000 per recipient, provided that such advances are monitored through other forms contained in this section; (2) If, in the Federal awarding agency's opinion,the recipient's accounting controls are adequate to minimize excessive Federal advances;or, (3)When the electronic payment mechanisms provide adequate data. (b)When the Federal awarding agency needs additional information or more frequent reports,the following shall be observed. (1)When additional information is needed to comply with legislative requirements, Federal awarding agencies shall issue instructions to require recipients to submit such information under the"Remarks"section of the reports. (2)When a Federal awarding agency determines that a recipient's accounting system does not meet the standards in Section .21, additional pertinent information to further monitor awards may be obtained upon written notice to the recipient until such time as the system is brought up to standard. The Federal awarding agency, in obtaining this information, shall comply with report clearance requirements of 5 CFR part 1320. (3) Federal awarding agencies are encouraged to shade out any line item on any report if not necessary. (4)Federal awarding agencies may accept the identical information from the recipients in machine readable format or computer printouts or electronic outputs in lieu of prescribed formats. (5) Federal awarding agencies may provide computer or electronic outputs to recipients when such expedites or contributes to the accuracy of reporting. _.53 Retention and access requirements for records. (a)This section sets forth requirements for record retention and access to records for awards to recipients. Federal 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 findinos involvina the records have been resolved and final action http://www.whitehouse.gov/omb/circulars/a 110/a l 10.html 6/23/2006 tivity supported by the award. Recipients shall monitor subawards to ensure subrecipients have met the audit rant,iromontc oe rlolinootorl in Cortinn ')A http://www.whitehouse.gov/omb/circulars/a110/a110.html 6/23/2006 ttp://www.whitehouse.gov/omb/circulars/al 10/al l0.html 6/23/2006 t-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." http://www.whitehouse.gov/omb/circulars/a110/a110.html 6/23/2006 erning 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. http://www.whitehouse.gov/omb/circulars/a110/al 1 0.html 6/23/2006 Llrcular NO. A-11U -- uniiorm 1-1urrnnistrative Icequ.lremems for lJranls atiu rage GU 01 JU • 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. (4) Indirect cost rate proposals, cost allocations plans,etc. as specified in paragraph_.53(g). (c)Copies of original records may be substituted for the original records if authorized by the Federal awarding agency. (d)The Federal awarding agency shall request transfer of certain records to its custody from recipients when it determines that the records possess long term retention value. However, in order to avoid duplicate recordkeeping, a Federal awarding agency may make arrangements for recipients to retain any records that are continuously needed • for joint use. (e)The Federal awarding agency,the Inspector General, Comptroller General of the United States, or any of their duly authorized representatives, have the right of timely and unrestricted access to any books,documents, papers, or other records of recipients that are pertinent to the awards, in order to make audits, examinations,excerpts, transcripts and copies of such documents.This right also includes timely and reasonable access to a recipient's personnel for the purpose of interview and discussion related to such documents.The rights of access in this paragraph are not limited to the required retention period,but shall last as long as records are retained. (f) Unless required by statute, no Federal awarding agency shall place restrictions on recipients that limit public access to the records of recipients that are pertinent to an award, except when the Federal awarding agency can demonstrate that such records shall be kept confidential and would have been exempted from disclosure pursuant to the Freedom of Information Act(5 U.S.C. 552)if the records had belonged to the Federal awarding agency. (g) Indirect cost rate proposals,cost allocations plans, etc. Paragraphs (g)(1) and (g)(2) apply to the following types of documents, and their supporting records: indirect cost rate computations or proposals, cost allocation plans,and any similar accounting computations of the rate at which a particular group of costs is chargeable(such as computer usage 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. http://www.whitehouse.gov/omb/circul ars/a 110/all 0.html 6/23/2006 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 findinos involvina the records have been resolved and final action http://www.whitehouse.gov/omb/circulars/a 110/a l 10.html 6/23/2006 tivity supported by the award. Recipients shall monitor subawards to ensure subrecipients have met the audit rant,iromontc oe rlolinootorl in Cortinn ')A http://www.whitehouse.gov/omb/circulars/a110/a110.html 6/23/2006 ttp://www.whitehouse.gov/omb/circulars/al 10/al l0.html 6/23/2006 t-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." http://www.whitehouse.gov/omb/circulars/a110/a110.html 6/23/2006 erning 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. http://www.whitehouse.gov/omb/circulars/a110/al 1 0.html 6/23/2006 vaa V...l1Kl 1•V. 11 11V V1111Viiii a SSL1111111 J Ll LLL,•V 1\VVLLll V111V114J 1,11 V1 L111 LJ llllll l S IVV11IV11... 1 4a, 1-/ V1 ✓V • (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. • (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 http://www.whitehouse.gov/omb/circulars/a 110/a l 1 0.html 6/23/2006 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 findinos involvina the records have been resolved and final action http://www.whitehouse.gov/omb/circulars/a 110/a l 10.html 6/23/2006 tivity supported by the award. Recipients shall monitor subawards to ensure subrecipients have met the audit rant,iromontc oe rlolinootorl in Cortinn ')A http://www.whitehouse.gov/omb/circulars/a110/a110.html 6/23/2006 ttp://www.whitehouse.gov/omb/circulars/al 10/al l0.html 6/23/2006 t-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." http://www.whitehouse.gov/omb/circulars/a110/a110.html 6/23/2006 erning 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. http://www.whitehouse.gov/omb/circulars/a110/al 1 0.html 6/23/2006 Circular No. A-11U -- Umiorm Actmtmstrauve rcequiremenrs iur Uranrs auu iAgi a,c, under the award not later than 90 calendar days after the funding period or the date of completion as specified in the terms and conditions of the award or in agency implementing instructions. (c)The Federal awarding agency shall make prompt payments to a recipient for allowable reimbursable costs under the award being closed out. (d)The recipient shall promptly refund any balances of unobligated cash that the Federal awarding agency has advanced or paid and that is not authorized to be retained by the recipient for use in other projects. OMB Circular A- 129 governs unreturned amounts that become delinquent debts. (e)When authorized by the terms and conditions of the award,the Federal awarding agency shall make a settlement for any upward or downward adjustments to the Federal share of costs after closeout reports are received. (f)The recipient shall account for any real and personal property acquired with Federal funds or received from the Federal Government in accordance with Sections_.31 through_.37. (g) In the event a final audit has not been performed prior to the closeout of an award, the Federal awarding agency shall retain the right to recover an appropriate amount after fully considering the recommendations on disallowed costs resulting from the final audit. _.72 Subsequent adjustments and continuing responsibilities. (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 of amounts due. (a)Any funds paid to a recipient in excess of the amount to which the recipient is finally determined to be entitled under the terms and conditions of the award constitute a debt to the Federal Government. If not paid within a reasonable period after the demand for payment,the Federal awarding agency may reduce the debt by (1), (2)or (3). (1)Making an administrative offset against other requests for reimbursements. (2)Withholding advance payments otherwise due to the recipient. (3)Taking other action permitted by statute. (b)Except as otherwise provided by law,the Federal awarding agency shall charge interest on an overdue debt in accordance with 4 CFR Chapter II,"Federal Claims Collection Standards." http://www.whitehouse.gov/omb/circulars/a110/a110.html 6/23/2006 n, 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 http://www.whitehouse.gov/omb/circulars/a 110/a l 1 0.html 6/23/2006 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 findinos involvina the records have been resolved and final action http://www.whitehouse.gov/omb/circulars/a 110/a l 10.html 6/23/2006 tivity supported by the award. Recipients shall monitor subawards to ensure subrecipients have met the audit rant,iromontc oe rlolinootorl in Cortinn ')A http://www.whitehouse.gov/omb/circulars/a110/a110.html 6/23/2006 ttp://www.whitehouse.gov/omb/circulars/al 10/al l0.html 6/23/2006 t-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." http://www.whitehouse.gov/omb/circulars/a110/a110.html 6/23/2006 erning 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. http://www.whitehouse.gov/omb/circulars/a110/al 1 0.html 6/23/2006 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. 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 1/2 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 V 1.11.U1LL1 INV. - -11V -- V1u1V1111 1u1a11u1Ja1 uaa vv i ...+ v+...-+... •-++.• --b---------•. - -. - - - -- - • • award. Such disclosures are forwarded from tier to tier up to the recipient. 8. Debarment and Suspension (E.O.s 12549 and 12689) -No contract shall be made to parties listed on the General Services Administration's List of Parties Excluded from Federal Procurement or Nonprocurement Programs in accordance with E.O.s 12549 and 12689,"Debarment and Suspension."This list contains the names of parties debarred,suspended, or otherwise excluded by agencies, and contractors declared ineligible under statutory or regulatory authority other than E.O. 12549. Contractors with awards that exceed the small purchase threshold shall provide the required certification regarding its exclusion status and that of its principal employees. Return to Top • http://www.whitehouse.gov/omb/circulars/a110/al 10.html 6/23/2006 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. 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 1/2 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 • r; ' O O O O CDO O O CD O O O O - O CDo CDo o is") CDCD til CDoO o p O., O 00 k 00 —, lrl O M l� �-'4 � M O ^' O I� .., O O M O in VD r- r 00 01 C O_ — — N_ M_ M_ N .� CD 'i 69 69 69 EA6A 69 69 69 69 69 69 6R 6A IC +-+ O •ti _ O >, 0 in >H b 5 6A� N >: a.) O C li C •C 7/- 0 O O O CD O O O 1D O O CD V > O O O O O O O O O O O O O cd :01 d 1D N. 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C",c "4" •••-, 4-. ,_, 4.4 N N N N N N Cr) M M L (J C M 69 69 69 69 69 64 69 69 69 69 69 69 69 N O 4O+ ct .c� cd y 0 - • •� `E cl O y 0-, >-, 0 O 6> a, O 00 4" O . N M v1 00 c1 O '""' N M a�"' ,'LI. ' O 0 E • Z/ et o0 fJ, O •� O A Z 34 W69 J 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 EXHIBIT C PROGRAM INCOME "Program income" means gross income received by the Recipient or a Subrecipient directly generated from the uses of CDBG/HOME and other federal funds. When such income is generated by an activity that is only partially assisted with CDBG/HOME and other federal funds, the income shall be prorated to reflect the percentage of CDBG/HOME and other federal funds used. (1) Program income includes, but is not limited to the following: (i) Proceeds from the disposition by sale or long term lease of real property purchased or improved with CDBG/HOME and other federal funds; • (ii) Proceeds from the disposition of equipment purchased with CDBG/HOME and other federal funds; (iii) Gross income from the use or rental of real or personal property acquired by the Recipient or a Subrecipient with CDBG/HOME and other federal funds, less the costs incidental to the generation of such income; (iv) Gross income from the use or rental of real property owned by the Recipient or a Subrecipient that was constructed or improved with CDBG/HOME and other federal funds, less the costs incidental to the generation of such income; (v) Payments of principal and interest on loans made using CDBG/HOME and other federal funds; (vi) Proceeds from the sale of loans made with CDBG/HOME and other federal funds; (vii) Proceeds from the sale of obligations secured by loans made with CDBG/HOME and other federal funds; (viii) Interest earned on funds held in a revolving fund account; (ix) Interest earned on program income pending disposition of such income; and (x) Funds collected through special assessments made against properties owned and occupied by households not of low- and moderate-income, where such assessments are used to recover all or part of the CDBG/HOME and other federal portion of a public improvement. (2) Program income does not include interest earned (except for interest described in §570.513) on cash advances from the US Treasury. Such interest shall be remitted to HUD for transmittal to the US Treasury and will not be reallocated under Section 106(c) or (d) of the Act. Examples of other receipts that are not considered program income are proceeds from fundraising activities carried out by Subrecipients receiving CDBG/HOME and other federal assistance; funds collected through special assessments used to recover. the non- CDBG/HOME and other federal portion of a public improvement; and proceeds from the disposition of real property acquired or improved with CDBG/HOME and other federal funds when such disposition occurs after the applicable time period specified in §570.503(b)(8) for Subrecipient-controlled property or §570.505 for Recipient-controlled property for CDBG program funds and §92.503 for HOME program funds. Revised 1/11/06 00 •--t M \D ' , ' � G� O 4"' s.. p N N N M M M d d- d- d- kr) cn vl O 69 69 69 69 6A 69 69 69 69 69 69 6A 6A C V cd W -E, vi N O 0 cd 4- O - 6 cd 00 0 0 0 0 0 0 0 0 0 0 0 • w cn in cn v, 'n telin cn cn v, O O cn O O a) y E O ON CT CT., in N en O\ v) — N N y,. C .0 G. as 'O.,' en kri r--" C7\ ,--. (",1" •71:' ',6 I": C/1" ••••-4.' C",c "4" •••-, 4-. ,_, 4.4 N N N N N N Cr) M M L (J C M 69 69 69 69 69 64 69 69 69 69 69 69 69 N O 4O+ ct .c� cd y 0 - • •� `E cl O y 0-, >-, 0 O 6> a, O 00 4" O . N M v1 00 c1 O '""' N M a�"' ,'LI. ' O 0 E • Z/ et o0 fJ, O •� O A Z 34 W69 J 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 CITY OF OMAHA Exhibit D SUBSIDY LAYERING STANDARDS FOR THE HOME 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 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 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 Rehabilitation Inspector. The City shall ensure that costs being funded by HOME 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, an 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: CI T y of CDUk. I, &LOrr-d'._.5 The PAuiT i —Fikm i t I-161 l We PPOTCSro ect located at LO CATT ONS '[o 6E LC1�21M 10,Fh 47/4 T has been evaluated iraccordance with the above Subsidy Layering Standards for the HOME Program b° 1!✓ guidelines, as approved by the Planning Director and the Housing and Community Development Ma ager. L(4/441.• 41-/ 61): &:)'--i' . yit3//06 I Daisy Cain Burton, Contract Administration Date and Compliance Manager Revised 3/15/04 O 00 4" O . N M v1 00 c1 O '""' N M a�"' ,'LI. ' O 0 E • Z/ et o0 fJ, O •� O A Z 34 W69 J 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 MEMORANDUM TO FILE RE: SECTION 504 ACCESSIBILITY REQUIREMENTS PROJECT: City of Council Bluffs New construction of HOME multi-family housing Six units total within one or two housing projects x The above named project is not exempt from Section 504 Accessibility Requirements. Accessibility modifications required: New multifamily units shall be designed and constructed to be readily accessible to and usable by individuals with handicaps. A minimum of five percent of the total dwelling units or at least one unit shall be made accessible for persons with mobility impairments. A unit that is on an accessible route and is adaptable is considered accessible. An additional two percent of the units or at least one unit shall be made accessible for persons with hearing or vision impairments. The above named project is exempt from Section 504 Accessibility Requirements for the following reason(s): GG � �S Ed Dantzler, Rehab' ' on Manager Da e ((/ /o Marian Todd, Section 504 Officer Date 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 Rehabilitation Inspector. The City shall ensure that costs being funded by HOME 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, an 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: CI T y of CDUk. I, &LOrr-d'._.5 The PAuiT i —Fikm i t I-161 l We PPOTCSro ect located at LO CATT ONS '[o 6E LC1�21M 10,Fh 47/4 T has been evaluated iraccordance with the above Subsidy Layering Standards for the HOME Program b° 1!✓ guidelines, as approved by the Planning Director and the Housing and Community Development Ma ager. L(4/441.• 41-/ 61): &:)'--i' . yit3//06 I Daisy Cain Burton, Contract Administration Date and Compliance Manager Revised 3/15/04 O 00 4" O . N M v1 00 c1 O '""' N M a�"' ,'LI. ' O 0 E • Z/ et o0 fJ, O •� O A Z 34 W69 J 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 Exhibit E CITY OF COUNCIL BLUFFS HOME LOAN DETERMINATION PROCESS The following must be completed prior to submitting an application for HOME loan assistance: 1) The applicant or family must have satisfactorily completed the 12 hour Home Buyer Workshop and have received a Certificate of Achievement, offered by Family Housing Advisory Services, Inc. 2) The household requesting assistance must have been approved for first mortgage financing and be able to pay for normal closing costs. Upon successfully completing requirements 1 and 2 above, the applicant may then make application for HOME loan assistance. Upon receiving the applicant's housing assistance application, the City's designated nonprofit agency will review the completed application for eligibility. The nonprofit agency will make a preliminary determination for eligibility and then forward their recommendation to the City for final loan approval. ((/ /o Marian Todd, Section 504 Officer Date 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 Rehabilitation Inspector. The City shall ensure that costs being funded by HOME 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, an 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: CI T y of CDUk. I, &LOrr-d'._.5 The PAuiT i —Fikm i t I-161 l We PPOTCSro ect located at LO CATT ONS '[o 6E LC1�21M 10,Fh 47/4 T has been evaluated iraccordance with the above Subsidy Layering Standards for the HOME Program b° 1!✓ guidelines, as approved by the Planning Director and the Housing and Community Development Ma ager. L(4/441.• 41-/ 61): &:)'--i' . yit3//06 I Daisy Cain Burton, Contract Administration Date and Compliance Manager Revised 3/15/04 O 00 4" O . N M v1 00 c1 O '""' N M a�"' ,'LI. ' O 0 E • Z/ et o0 fJ, O •� O A Z 34 W69 J 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 • MINORITY BUSINESS & WOMEN BUSINESS ENTERPRISE PLAN ,o,OZJIAHA,,v4.. October 2001 `1 Tit, ()ar. , 7 lfimr/ �r6' 0, .emu'=.: , ,, 4'41.FD FEBOt' PLANNING• OMAHA City of Omaha Robert C. Peters,Director Mike Fahey,Mayor City of Omaha Planning Department Omaha/Douglas Civic Center 1819 Farnam Street Omaha,Nebraska 68183 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 ATTACHMENT P:\PLN3\13639pjm.doc PLANNING DEPARTMENT CITY OF OMAHA MINORITY BUSINESS/WOMEN BUSINESS ENTERPRISE PLAN INTRODUCTION Minority and women business sectors play an important part in Omaha's overall plans for future growth, progress, and prosperity. It is vital to the City's economic condition and well-being that minority and women businesses expand, thrive and prosper, generating economic stability and increased job opportunities. Towards the fulfillment and accomplishment of these important objectives, the City of Omaha remains committed to minority and women business development. The City of Omaha's approach to minority/women business development is embedded in its policy of non- discrimination in the conduct of City business including the procurement of goods, materials and services, construction and community and economic development projects. The City recognizes its obligations to each segment of the various communities it serves. It is in recognition of these responsibilities that the City established the City's Contract Compliance Ordinance. The Ordinance commits the City to: 1. Require contractors and/or vendors to provide employment opportunities without regard to race, color, sex, religion, or national origin; 2. Monitor contractor and vendor equal opportunity performance; and 3. Increase the total number and total dollar volume of City contracts awarded to minority-owned and women-owned firms. GOALS AND OBJECTIVES The following represents a summary of the goals and objectives of the Planning Department as they relate to minority and women-owned businesses: 1. •Encourage, increase and promote business and procurement opportunities for women-owned businesses; 2. Increase and expand the awareness and understanding regarding the concerns, obstacles, and hindrances preventing increased MBE/WBE participation in Planning Department activities; 3. Assist MBE's/WBE's through the revitalization of business districts; 4. Assist minority and female entrepreneurs in the formation and growth of new small businesses; and 5. Provide technical assistance to neighborhood organizations, MBE's and WBE's to increase their participation in the Planning Department programs and activities at all levels. SCOPE OF WORK In order to accomplish these objectives, the Planning Department will: 1. Require that recipients of grant awards, consulting contracts, or loans to develop and provide a MBE/WBE Utilization Plan, 2. Ensure that Requests for Proposals require the submission of MBE/WBE Utilization Plans. 1 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: CI T y of CDUk. I, &LOrr-d'._.5 The PAuiT i —Fikm i t I-161 l We PPOTCSro ect located at LO CATT ONS '[o 6E LC1�21M 10,Fh 47/4 T has been evaluated iraccordance with the above Subsidy Layering Standards for the HOME Program b° 1!✓ guidelines, as approved by the Planning Director and the Housing and Community Development Ma ager. L(4/441.• 41-/ 61): &:)'--i' . yit3//06 I Daisy Cain Burton, Contract Administration Date and Compliance Manager Revised 3/15/04 O 00 4" O . N M v1 00 c1 O '""' N M a�"' ,'LI. ' O 0 E • Z/ et o0 fJ, O •� O A Z 34 W69 J 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 3. Ensure that the programs of the Planning Department are advertised in the appropriate new media whose markets are targeted toward MBE/WBE. 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: A. Complete CC-1 (Human Relations Department) B. Complete Bid List Registration (Finance Department, Purchasing Division C. Complete Business Certification (Human Relations Department) 7. Require developers, corporations, partnerships and/or sole proprietors to provide registration information on all sub-contractors. 8. Require loan agreements to include a statement that jobs created will be made available to low-to- moderate income persons. The following application package has been developed to assist you in complying with our request for information on your business and all sub-contractors providing goods and/or services on projects financed by and/or implemented through an agreement with the City of Omaha. If you have any questions or require further assistance in completing the application package, please contact Mr. Kenneth Johnson, Sr. at 444-5165. 2 nts 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 develop and provide a MBE/WBE Utilization Plan, 2. Ensure that Requests for Proposals require the submission of MBE/WBE Utilization Plans. 1 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: CI T y of CDUk. I, &LOrr-d'._.5 The PAuiT i —Fikm i t I-161 l We PPOTCSro ect located at LO CATT ONS '[o 6E LC1�21M 10,Fh 47/4 T has been evaluated iraccordance with the above Subsidy Layering Standards for the HOME Program b° 1!✓ guidelines, as approved by the Planning Director and the Housing and Community Development Ma ager. L(4/441.• 41-/ 61): &:)'--i' . yit3//06 I Daisy Cain Burton, Contract Administration Date and Compliance Manager Revised 3/15/04 O 00 4" O . N M v1 00 c1 O '""' N M a�"' ,'LI. ' O 0 E • Z/ et o0 fJ, O •� O A Z 34 W69 J 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 • MBE/WBE FOR EMPLOYMENT The following list of organizations is provided to assist you in identifying low-to-moderate income persons for employment opportunities. You must make concerted efforts to hire low-to-moderate income persons and document specific actions taken to achieve these objectives. To help accomplish the above goals, the following agencies should be notified of initial employment opportunities for low to moderate income persons: Omaha Work Force Development Employment YWCA Services 222 South 29th Street 2421 North 24th Street Omaha, NE 68131 Omaha, NE 68111 Peg Harriott, Executive Director 444-4700 345-6555 Work Force Development of Greater Omaha Omaha Opportunities Industrialization Center Blue Lion.Centre 2724 North 24th Street 2421-23 North 24th Street Omaha, NE 68110 Omaha, NE 68110 Dr. Bernice Dodd, Executive Director Ola Anderson, Director 457-4222 444-3510 Urban League of Nebraska, Inc. Girls Incorporated of Omaha 3022-24 North 24th Street 2811 North 45th Street Omaha, NE 68110 Omaha, NE 68104 Marilyn McGary, President Miss Roberta, Executive Director 453-9730 457-4676 3 th the City of Omaha. If you have any questions or require further assistance in completing the application package, please contact Mr. Kenneth Johnson, Sr. at 444-5165. 2 nts 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 develop and provide a MBE/WBE Utilization Plan, 2. Ensure that Requests for Proposals require the submission of MBE/WBE Utilization Plans. 1 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: CI T y of CDUk. I, &LOrr-d'._.5 The PAuiT i —Fikm i t I-161 l We PPOTCSro ect located at LO CATT ONS '[o 6E LC1�21M 10,Fh 47/4 T has been evaluated iraccordance with the above Subsidy Layering Standards for the HOME Program b° 1!✓ guidelines, as approved by the Planning Director and the Housing and Community Development Ma ager. L(4/441.• 41-/ 61): &:)'--i' . yit3//06 I Daisy Cain Burton, Contract Administration Date and Compliance Manager Revised 3/15/04 O 00 4" O . N M v1 00 c1 O '""' N M a�"' ,'LI. ' O 0 E • Z/ et o0 fJ, O •� O A Z 34 W69 J 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 MBE/WBE FOR GOODS AND SERVICES Your company must make vendors aware of your policy to support 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. Omaha Small Business Network, Inc. 2505 North 24th Street Omaha, NE 68110 Executive Director 453-5336 Housing and Community Development Division City Planning 1819 Farnam. Street, Room 1111 Omaha, NE 68183 Kenneth E. Johnson, Sr., Economic Development Manager 444-5165 Nebraska Department of Economic Development Small Business (MBE/WBE/DBE) Assistance 301 Centennial Mall South Lincoln,NE 68509-4666 Steve Williams, Business Assistance Manager 471-3778 Purchasing Department 1819 Famam Street, Room 1003 Omaha,NE 68183 John Leming, Purchasing Agent 444-5407 Human Relations Department Gail Kinsey Thompson, Director(444-5050) Contract Compliance (MBE/WBE) 1819 Famam Street, Room 502 Omaha, NE 68183 • s 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 develop and provide a MBE/WBE Utilization Plan, 2. Ensure that Requests for Proposals require the submission of MBE/WBE Utilization Plans. 1 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: CI T y of CDUk. I, &LOrr-d'._.5 The PAuiT i —Fikm i t I-161 l We PPOTCSro ect located at LO CATT ONS '[o 6E LC1�21M 10,Fh 47/4 T has been evaluated iraccordance with the above Subsidy Layering Standards for the HOME Program b° 1!✓ guidelines, as approved by the Planning Director and the Housing and Community Development Ma ager. L(4/441.• 41-/ 61): &:)'--i' . yit3//06 I Daisy Cain Burton, Contract Administration Date and Compliance Manager Revised 3/15/04 O 00 4" O . N M v1 00 c1 O '""' N M a�"' ,'LI. ' O 0 E • Z/ et o0 fJ, O •� O A Z 34 W69 J 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 MBE/WBE FOR GOODS AND SERVICES Great Plains Minority Supplier Development Council Greater Omaha Chamber of Commerce 1301 Harney Street Omaha,NE 68102 Terrie Miller, Director 345-5000 United Minority Contractors Association 2221 North 24th Street Omaha, NE 68110 Al Epps, Executive Director 341-2177 Kathleen Piper, ADD/MED Small Business Administration 11145 Mill Valley Road Omaha, NE 68154 221-7205 Hubert J. Carter, Jr., Deputy for Small Business U.S. Corps of Engineers 215 North 17th Street Omaha,NE 68102 221-4110 5 .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 ATTACHMENT P:\PLN3\13639pjm.doc City of Omaha BUSINESS QUALIFICATION RESUME DATE: I. FIRM IDENTIFICATION: COMPANY NAME STREET ADDRESS CITY STATE ZIP CODE BUSINESS PHONE HOME PHONE MONTH &YEAR ESTABLISHED II. OWNERSHIP OF FIRM: IS THE FIRM OWNED AND CONTROLLED BY MEMBER OF MINORITY OR OTHER DISADVANTAGED GROUP?: YES ❑ NO ❑ MINORITY ❑ WOMAN ❑ N/A ❑ TYPE OF OWNERSHIP: INDIVIDUAL ❑ PARTNERSHIP ❑ CORPORATION ❑ IS 51% OWNED BY A MINORITY? YES ❑ NO ❑ NAME AND ADDRESS OF ALL STOCKHOLDERS AND/OR PARTNERS: NAME, TITLE, HOME ADDRESS % OF OWNERSHIP III. MANAGEMENT (USE SAME FORMAT FOR ADDITIONAL MANAGEMENT PERSONNEL): NAME POSITION EDUCATION MANAGEMENT OR TECHNICAL TRAINING 6/22/90 6 ND ATTACHMENT P:\PLN3\13639pjm.doc City of Omaha CONTRACTOR INFORMATION FORM: DATE: PROJECT ADDRESS OWNER INFORMATION: (To be filled out by the City of Omaha) OWNER'S NAME OWNER'S ADDRESS CITY/STATE/ZIP CODE OWNER'S PHONE NUMBER OWNER'S FEDERAL TAX IDENTIFICATION NUMBER: MINORITY INFORMATION: The Owner meets the following criteria: MINORITY 0 WOMAN ❑ N/A ❑ (If the company does not have a Federal Tax Identification Number, then provide the Owner's Social Security Number.) GENERAL CONTRACTOR INFORMATION: COMPANY'S NAME COMPANY'S ADDRESS CITY/STATE/ZIP CODE COMPANY'S PHONE NUMBER COMPANY'S FEDERAL TAX IDENTIFICATION NUMBER: MINORITY INFORMATION: The Company meets the following criteria: MINORITY ❑ WOMAN ❑ N/A ❑ CONTRACT AMOUNT: SUBCONTRACTOR LIST: SUBCONTRACTOR TRADE FED. I.D. # TELEPHONE# MINORITY INFO.: ❑ MINORITY ❑ WOMAN CONTRACT AMOUNT: ❑ N/A SUBCONTRACTOR TRADE FED. I.D. # TELEPHONE # MINORITY INFO.: ❑ MINORITY ❑ WOMAN 0 CONTRACT AMOUNT: N/A 7 ment 1819 Famam Street, Room 1003 Omaha,NE 68183 John Leming, Purchasing Agent 444-5407 Human Relations Department Gail Kinsey Thompson, Director(444-5050) Contract Compliance (MBE/WBE) 1819 Famam Street, Room 502 Omaha, NE 68183 • s 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 develop and provide a MBE/WBE Utilization Plan, 2. Ensure that Requests for Proposals require the submission of MBE/WBE Utilization Plans. 1 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: CI T y of CDUk. I, &LOrr-d'._.5 The PAuiT i —Fikm i t I-161 l We PPOTCSro ect located at LO CATT ONS '[o 6E LC1�21M 10,Fh 47/4 T has been evaluated iraccordance with the above Subsidy Layering Standards for the HOME Program b° 1!✓ guidelines, as approved by the Planning Director and the Housing and Community Development Ma ager. L(4/441.• 41-/ 61): &:)'--i' . yit3//06 I Daisy Cain Burton, Contract Administration Date and Compliance Manager Revised 3/15/04 O 00 4" O . N M v1 00 c1 O '""' N M a�"' ,'LI. ' O 0 E • Z/ et o0 fJ, O •� O A Z 34 W69 J 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 City of Omaha SUBCONTRACTOR LIST: (Continuation) SUBCONTRACTOR TRADE FED. I.D. # TELEPHONE # MINORITY INFO.: ❑ MINORITY ❑ WOMAN CONTRACT AMOUNT: ❑ N/A SUBCONTRACTOR TRADE FED. I.D. # TELEPHONE# MINORITY INFO.: ❑ MINORITY ❑ WOMAN CONTRACT AMOUNT: ❑ N/A SUBCONTRACTOR TRADE FED. I.D. # TELEPHONE # MINORITY INFO.: (l MINORITY ❑ WOMAN CONTRACT AMOUNT: ❑ N/A SUBCONTRACTOR TRADE FED. I.D. # TELEPHONE# MINORITY INFO.: ❑ MINORITY ❑ WOMAN CONTRACT AMOUNT: ❑ N/A SUBCONTRACTOR TRADE FED. I.D. # TELEPHONE # MINORITY INFO.: ❑ MINORITY ❑ WOMAN CONTRACT AMOUNT: ❑ N/A SUBCONTRACTOR TRADE FED. I.D. # TELEPHONE # MINORITY INFO.: ❑ MINORITY ❑ WOMAN CONTRACT AMOUNT: ❑ N/A SUBCONTRACTOR TRADE FED. I.D. # TELEPHONE# MINORITY INFO.: ❑ MINORITY ❑ WOMAN CONTRACT AMOUNT: ❑ N/A SUBCONTRACTOR TRADE FED. I.D. # TELEPHONE# MINORITY INFO.: ❑ MINORITY ❑ WOMAN CONTRACT AMOUNT: ❑ N/A 8 Omaha, NE 68183 • s 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 develop and provide a MBE/WBE Utilization Plan, 2. Ensure that Requests for Proposals require the submission of MBE/WBE Utilization Plans. 1 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: CI T y of CDUk. I, &LOrr-d'._.5 The PAuiT i —Fikm i t I-161 l We PPOTCSro ect located at LO CATT ONS '[o 6E LC1�21M 10,Fh 47/4 T has been evaluated iraccordance with the above Subsidy Layering Standards for the HOME Program b° 1!✓ guidelines, as approved by the Planning Director and the Housing and Community Development Ma ager. L(4/441.• 41-/ 61): &:)'--i' . yit3//06 I Daisy Cain Burton, Contract Administration Date and Compliance Manager Revised 3/15/04 O 00 4" O . N M v1 00 c1 O '""' N M a�"' ,'LI. ' O 0 E • Z/ et o0 fJ, O •� O A Z 34 W69 J 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 f,=x i--t 6 i " " /Or-) Federal Labor Standards Provisions I U. S. Department of Housing and Urban Development Applicability The Project or Program to which the construction work covered by this contract pertains is being assisted by the United States of America and the following Federal Labor Standards Provisions are included in this Contract pursuant to the provisions applicable to such Federal assistance. A. 1. (i) Minimum Wages. All laborers and mechanics employed or working upon the site of the work (or under the United States Housing Act of 1937 or under the Housing Act of 1949 in the construction or development of the project), will be paid unconditionally and not less often than once a week, and without subsequent deduction or rebate on any account (except such payroll deductions as are permitted by regulations issued by the Secretary of Labor under the Copeland Act (29 CFR Part 3), the full amount of wages and bona fide fringe benefits (or cash equivalents thereof) due at time of payment computed at rates not less than those contained in the wage determination of the Secretary of Labor which is attached hereto and made a part hereof, regardless of any contractual relationship which may be alleged to exist between the contractor and such laborers and mechanics. Contributions made or costs reasonably anticipated for bona fide fringe benefits under Section 1(b)(2) of the Davis-Bacon Act on behalf of laborers or mechanics are considered wages paid to such laborers or mechanics, subject to the provisions of 29 CFR 5.5(a)(1)(iv); also, regular contributions made or costs incurred for more than a weekly period (but not less often than quarterly) under plans, funds, or programs, which cover the particular weekly period, are deemed to be constructively made or incurred during such weekly period. Such laborers and mechanics shall be paid the appropriate wage rate and fringe benefits on the wage determination for the classification of work actually performed, without regard to skill, except as provided in 29 CFR Part 5.5(a)(4). Laborers or mechanics performing work in more than one classification may be compensated at the rate specified for each classification for the time actually worked therein: Provided, That the employer's payroll records accurately set forth the time spent in each classification in which work is performed. The wage determination (including any additional classification and wage rates conformed under 29 CFR Part 5.5(a)(1)(ii) and the Davis-Bacon poster (WH-1321) shall be posted at all times by the contractor and its subcontractors at the site of the work in a prominent and accessible place where it can be easily seen by the workers. (ii) (a) Any class of laborers or mechanics which is not listed in the wage determination and which is to be employed under the contract shall be classified in conformance with the wage determination, HUD shall approve an additional classification and wage rate and fringe benefits therefore only when the following criteria have been met: (1) The work to be performed by the classification requested is not performed by a classification in the wage determination; and (2) The classification is utilized in the area by the construction industry; and (3) The proposed wage rate, including any bona fide fringe benefits, bears a reasonable relationship to the wage rates contained in the wage determination. (b) If the contractor and the laborers and mechanics to be employed in the classification (if known), or their representatives, and HUD or its designee agree on the classification and wage rate (including the amount designated for fringe benefits where appropriate), a report of the action taken shall be sent by HUD or its designee to the Administrator of the Wage and Hour Division, Employment Standards Administration, U.S. Department of Labor, Washington, D.C. 20210. The Administrator, or an authorized representative, will approve, modify, or disapprove every additional classification action within 30 days of receipt and so advise HUD or its designee or will notify HUD or its designee within the 30-day period that additional time is necessary. (Approved by the Office of Management and Budget under OMB control number 1215-0140.) 1 ee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 0. • (c) In the event the contractor, the laborers or mechanics to be employed in the classification or their representatives, and HUD or its designee do not agree on the proposed classification and wage rate (including the amount designated for fringe benefits, where appropriate), HUD or its designee shall refer the questions, including the views of all interested parties and the recommendation of HUD or its designee, to the Administrator for determination. The Administrator, or an authorized representative, will issue a determination within 30 days of receipt and so advise HUD or its designee or will notify HUD or its designee within the 30-day period that additional time is necessary. (Approved by the Office of Management and Budget under OMB Control Number 1215-0140.) (d) The wage rate (including fringe benefits where appropriate) determined pursuant to subparagraphs (1)(b) or (c) of this paragraph, shall be paid to all workers performing work in the classification under this contract from the first day on which work is performed in the classification. (iii) Whenever the minimum wage rate prescribed in the contract for a class of laborers or mechanics includes a fringe benefit which is not expressed as an hourly rate, the contractor shall either pay the benefit as stated in the wage determination or shall pay another bona fide fringe benefit or an hourly cash equivalent thereof. (iv) If the contractor does not make payments to a trustee or other third person, the contractor may consider as part of the wages of any laborer or mechanic the amount of any costs reasonably anticipated in providing bona fide fringe benefits under a plan or program, Provided, That the Secretary of Labor has found, upon the written request of the contractor, that the applicable standards of the Davis-Bacon Act have been met. The Secretary of Labor may require the contractor to set aside in a separate account assets for the meeting of obligations under the plan or program. (Approved by the Office of Management and Budget under OMB Control Number 1215- 0140.) 2. Withholding. HUD or its designee shall upon its own action or upon written request of an authorized representative of the Department of Labor withhold or cause to be withheld from the contractor under this contract or any other Federal contract with the same prime contractor, or any other Federally-assisted contract subject to Davis-Bacon prevailing wage requirements, which is held by the same prime contractor so much of the accrued payments or advances as may be considered necessary to pay laborers and mechanics, including apprentices, trainees and helpers, employed by the contractor or any subcontractor the full amount of wages required by the contract. In the event of failure to pay any laborer or mechanic, including any apprentice, trainee or helper, employed or working on the site of the work (or under the United States Housing Act of 1937 or under the Housing Act of 1949 in the construction or development of the project), all or part of the wages required by the contract, HUD or its designee may, after written notice to the contractor, sponsor, applicant, or owner, take such action as may be necessary to cause the suspension of any further payment, advance, or guarantee of funds until such violations have ceased. HUD or its designee may, after written notice to the contractor, disburse such amounts withheld for and on account of the contractor or subcontractor to the respective employees to whom they are due. The Comptroller General shall make such disbursements in the case of direct Davis-Bacon Act contracts. 3. (i) Payrolls and basic records. Payrolls and basic records relating thereto shall be maintained by the contractor during the course of the work preserved for a period of three years thereafter for all laborers and mechanics working at the site of the work (or under the United States Housing Act of 1937, or under the Housing Act of 1949, in the construction or development of the project). Such records shall contain the name, address, and social security number of each such worker, his or her correct classification, hourly rates of wages paid (including rates of contributions or costs anticipated for bona fide fringe benefits or cash equivalents thereof of the types described in Section 1(b)(2)(B) of the Davis-Bacon Act), daily and weekly number of hours worked, deductions made and actual wages paid. Whenever the Secretary of Labor has found under 29 CFR 5.5 (a)(1)(iv) that the wages of any laborer or mechanic include the amount of any costs reasonably anticipated in providing benefits under a plan or program described in Section 1(b)(2)(B) of the Davis-Bacon Act, the contractor shall maintain records which show that the commitment to provide 2 ll 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 such benefits is enforceable, that the plan or program is financially responsible, and that the plan or program has been communicated in writing to the laborers or mechanics affected, and records which show the costs anticipated or the actual cost incurred in providing such benefits. Contractors employing apprentices or trainees under approved programs shall maintain written evidence of the registration of apprenticeship programs and certification of trainee programs, the registration of the apprentices and trainees, and the ratios and wage rates prescribed in the applicable programs. (Approved by the Office of Management of Budget under OMB Control Numbers 1215-0140 and 1215-0017.) (ii) (a) The contractor shall submit weekly for each week in which any contract work is performed a copy of all payrolls to HUD or its designee if the agency is a party to the contract, but if the agency is not such a party, the contractor will submit the payrolls to the applicant, sponsor, or owner, as the case may be, for transmission to HUD or its designee. The payrolls submitted shall set out accurately and completely all of the information required to be maintained under 29 CFR Part 5.5(a)(3)(i). This information may be submitted in any form desired. Optional Form WH-347 is available for this purpose and may be purchased from the Superintendent of Documents (Federal Stock Number 029-005-00014-1), U.S. Government Printing Office, Washington, D.C. 20402. The prime Contractor is responsible for the submission of copies of payrolls by all subcontractors. (Approved by the Office of Management and Budget under OMB Control Number 1215-0149). (b) Each payroll submitted shall be accompanied by a "Statement of Compliance," signed by the contractor or subcontractor or his or her agent who pays or supervises the payment of the persons employed under the contract and shall certify the following: (1) That the payroll for the payroll period contains the information required to be maintained under 29 CFR Part 5.5(a)(3)(i) and that such information is correct and complete; (2) That each laborer or mechanic (including each helper, apprentice, and trainee) employed on the contract during the payroll period has been paid the full weekly wages earned, without rebate, either directly or indirectly, and that no deductions have been made either directly or indirectly from the full wages earned, other than permissible deductions as set forth in 29 CFR Part 3; (3) That each laborer or mechanic has been paid not less than the applicable wage rates and fringe benefits or cash equivalents for the classification of work performed, as specified in the applicable wage determination incorporated into the contract. (c) The weekly submission of a properly executed certification set forth on the reverse side of Optional Form WH-347 shall satisfy the requirement for submission of the "Statement of Compliance" required by paragraph A.3(ii)(b) of this section. (d) The falsification of any of the above certifications may subject the contractor or subcontractor to civil or criminal prosecution under Section 1001 of Title 18 and Section 231 of Title 31 of the United States Code. (iii) The contractor or subcontractor shall make the records required under paragraph A.3(i) of this section available for inspection, copying, or transcription by authorized representatives of HUD or its designee or the Department of Labor, and shall permit such representatives to interview employees during working hours on the job. If the contractor or subcontractor fails to submit the required records or to make them available, HUD or its designee may, after written notice to the contractor, sponsor, applicant, or owner, take such action as may be necessary to cause the suspension of any further payment, advance, or guarantee of funds: Furthermore, failure to submit the required records upon request or to make such records available may be grounds for debarment action pursuant to 29 CFR Part 5.12. 3 construction or development of the project). Such records shall contain the name, address, and social security number of each such worker, his or her correct classification, hourly rates of wages paid (including rates of contributions or costs anticipated for bona fide fringe benefits or cash equivalents thereof of the types described in Section 1(b)(2)(B) of the Davis-Bacon Act), daily and weekly number of hours worked, deductions made and actual wages paid. Whenever the Secretary of Labor has found under 29 CFR 5.5 (a)(1)(iv) that the wages of any laborer or mechanic include the amount of any costs reasonably anticipated in providing benefits under a plan or program described in Section 1(b)(2)(B) of the Davis-Bacon Act, the contractor shall maintain records which show that the commitment to provide 2 ll 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 . 4. (i) Apprentices and Trainees. Apprentices will be permitted to work at less than the predetermined rate for the work they performed when they are employed pursuant to and individually registered in a bona fide apprenticeship program registered with the U.S. Department of Labor, Employment and Training Administration, Bureau of Apprenticeship and Training, or with a State Apprenticeship Agency recognized by the Bureau, or if a person is employed in his or her first 90 days of probationary employment as an apprentice in such an apprenticeship program, who is not individually registered in the program, but who has been certified by the Bureau of Apprenticeship and Training or a State Apprenticeship Agency (where appropriate) to be eligible for probationary employment as an apprentice. The allowable ratio of apprentices to journeymen on the job site in any craft classification shall not be greater than the ratio permitted to the contractor as to the entire work force under the registered program. Any worker listed on a payroll at an apprentice wage rate, who is not registered or otherwise employed as stated above, shall be paid not less than the applicable wage rate on the wage determination for the classification of work actually performed. In addition, any apprentice performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. Where a contractor is performing construction on a project in a locality other than that in which its program is registered, the ratios and wage rates (expressed in percentages of the journeyman's hourly rate) specified in the contractor's or subcontractor's registered program shall be observed. Every apprentice must be paid at not less than the rate specified in the registered program for the apprentice's level of progress, expressed as a percentage of the journeymen hourly rate specified in the applicable wage determination. Apprentices shall be paid fringe benefits in accordance with the provisions of the apprenticeship program. If the apprenticeship program does not specify fringe benefits, apprentices must be paid the full amount of fringe benefits listed on the wage determination for the applicable classification. If the Administrator determines that a different practice prevails for the applicable apprentice classification, fringes shall be paid in accordance with that determination. In the event the Bureau of Apprenticeship and Training, or a State Apprenticeship Agency recognized by the Bureau, withdraws approval of an apprenticeship program, the contractor will no longer be permitted to utilize apprentices at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (ii) Trainees. Except as provided in 29 CFR 5.16, trainees will not be permitted to work at less than the predetermined rate for the work performed unless they are employed pursuant to and individually registered in a program which has received prior approval; evidenced by formal certification by the U.S. Department of Labor, Employment and Training Administration. The ratio of trainees to journeymen on the job site shall not be greater than permitted under the plan approved by the Employment and Training Administration. Every trainee must be paid at not less than the rate specified in the approved program for the trainee's level of progress, expressed as a percentage of the journeyman hourly rate specified in the applicable wage determination. Trainees shall be paid fringe benefits in accordance with the provisions of the trainee program. If the trainee program does not mention fringe benefits, trainees shall be paid the full amount of fringe benefits listed on the wage determination unless the Administrator of the Wage and Hour Division determines that there is an apprenticeship program associated with the corresponding journeyman wage rate on the wage determination which provides for less than full fringe benefits for apprentices. Any employee listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 • ,5. Compliance with Copeland Act requirements. The contractor shall comply with the requirements of 29 CFR Part 3 which are incorporated by reference in this contract. 6. Subcontracts. The contractor or subcontractor will insert in any subcontracts the clauses contained in 29 CFR 5.5(a)(1) through (10) and such other clauses as HUD or its designee may by appropriate instructions require, and also a clause requiring the subcontractors to include these clauses in any lower tier subcontracts. The prime contractor shall be responsible for the compliance by any subcontractor or lower tier subcontractor with all the contract clauses in 29 CFR Part 5.5 7. Contracts termination; debarment. A breach of the contract clauses in 29 CFR 5.5 may be grounds for termination of the contract, and for debarment as a contractor and a subcontractor as provided in 29 CFR 5.12. 8. Compliance with Davis-Bacon and Related Act Requirements. All rulings and interpretations of the Davis-Bacon and Related Acts contained in 29 CFR Parts 1, 3, and 5 are herein incorporated by reference in this contract. 9. Disputes concerning labor standards. Disputes arising out of the labor standards provisions of this contract shall not be subject to the general disputes clause of this contract. Such disputes shall be resolved in accordance with the procedures of the Department of Labor set forth in 29 CFR Parts 5, 6, and 7. Disputes within the meaning of this clause include disputes between the contractor (or any of its subcontractors) and HUD or its designee, the U.S. Department of Labor, or the employees or their representatives. 10. (i) Certification of Eligibility. By entering into this contract, the contractor certifies that neither it (nor he or she) nor any person or firm who has an interest in the contractor's firm is a person or firm ineligible to be awarded Government contracts by virtue of Section 3(a) of the Davis- Bacon Act or 29 CFR 5.12(a)(1) or to be awarded HUD contracts or participate in HUD programs pursuant to 24 CFR Part 24. (ii) No part of this contract shall be subcontracted to any person or firm ineligible for award of a Government contract by virtue of Section 3(a) of the Davis-Bacon Act or 29 CFR 5.12(a)(1) or to be awarded HUD contracts or participate in HUD programs pursuant to 24 CFR Part 24. (iii) The penalty for making false statements is prescribed in the U.S. Criminal Code, 18 U.S.C. 1001 . Additionally, U.S. Criminal Code, Section 1010, Title 18, U.S.C. "Federal Housing Administration transactions", provides in part "Whoever, for the purpose of...influencing in any way the action of such Administration...makes, utters or publishes any statement knowing the same to be false...shall be fined not more than $5,000 or imprisoned not more than two years, or both." 11. Complaints, Proceedings, or Testimony by Employees. No laborer or mechanic to whom the wage, salary, or other labor standards provisions of this Contract are applicable shall be discharged or in any other manner discriminated against by the contractor or any subcontractor because such employee has filed any complaint or instituted or caused to be instituted any proceeding or has testified or is about to testify in any proceeding under or relating to the labor standards applicable under this Contract to his employer. B Contract Work Hours and Safety Standards Act. As used in this paragraph, the terms "laborers" and "mechanics" include watchmen and guards. (1) Overtime requirements. No contractor or subcontractor contracting for any part of the contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensat ion at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 5 listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 (2) Violation; liability for unpaid wages; liquidated damages. In the event of any violation of the clause set forth in subparagraph (1) of this paragraph, the contractor and any subcontractor responsible therefor shall be liable for the unpaid wages. In addition, such contractor and subcontractor shall be liable to the United States (in the case of work done under contract for the District of Columbia or a territory, to such District or to such territory), for liquidated damages. Such liquidated damages shall be computed with respect to each individual laborer or mechanic, including watchmen and guards, employed in violation of the clause set forth in subparagraph (1) of this paragraph, in the sum of $10 for each calendar day on which such individual was required or permitted to work in excess of the standard workweek of forty hours without payment of the overtime wages required by the clause set forth in subparagraph (1) of this paragraph. (3) Withholding for unpaid wages and liquidated damages. HUD or its designee shall upon its own action or upon written request of an authorized representative of the Department of Labor withhold or cause to be withheld, from any moneys payable on account of work performed by the contractor or subcontractor under any such contract or any other Federal contract with the same prime contractor or any other Federally-assisted contract subject to the Contract Work Hours and Safety Standards Act, which is held by the same prime contractor such sums as may be determined to be necessary to satisfy any liabilities of such contractor or subcontractor for unpaid wages and liquidated damages as provided in the clause set forth in subparagraph (2) of this paragraph. (4) Subcontracts. The contractor or subcontractor shall insert in any subcontracts the clauses set forth in subparagraph (1) through (4) of this paragraph and also a clause requiring the subcontractors to include these clauses in any lower tier subcontracts. The prime contractor shall be responsible for compliance by any subcontractor or lower tier subcontractor with the clauses set forth in subparagraphs (1) through (4) of this paragraph. C. Health and Safety (1) No laborer or mechanic shall be required to work in surroundings or under working conditions which are unsanitary, hazardous, or dangerous to his health and safety as determined under construction safety and health standards promulgated by the Secretary of Labor by regulation. (2) The Contractor shall comply with all regulations issued by the Secretary of Labor pursuant to Title 29 Part 1926 (formerly part 1518) and failure to comply may result in imposition of sanctions pursuant to the Contract Work Hours and Safety Standards Act (Public Law 91-54, 83 Stat. 96). (3) The Contractor shall include the provisions of this Article in every subcontract so that such provisions will be binding on each subcontractor. The Contractor shall take such action with respect to any subcontract as the Secretary of Housing and Urban Development or the Secretary of Labor shall direct as a means of enforcing such provisions. 6 HUD 4010 (2-84) complaint or instituted or caused to be instituted any proceeding or has testified or is about to testify in any proceeding under or relating to the labor standards applicable under this Contract to his employer. B Contract Work Hours and Safety Standards Act. As used in this paragraph, the terms "laborers" and "mechanics" include watchmen and guards. (1) Overtime requirements. No contractor or subcontractor contracting for any part of the contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensat ion at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 5 listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 • Exhibit H CITY OF OMAHA AFFIRMATIVE MARKETING POLICY AND MONITORING PROCEDURES Effective: October 1, 1999 Revised: January 1, 2003 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 surroundings or under working conditions which are unsanitary, hazardous, or dangerous to his health and safety as determined under construction safety and health standards promulgated by the Secretary of Labor by regulation. (2) The Contractor shall comply with all regulations issued by the Secretary of Labor pursuant to Title 29 Part 1926 (formerly part 1518) and failure to comply may result in imposition of sanctions pursuant to the Contract Work Hours and Safety Standards Act (Public Law 91-54, 83 Stat. 96). (3) The Contractor shall include the provisions of this Article in every subcontract so that such provisions will be binding on each subcontractor. The Contractor shall take such action with respect to any subcontract as the Secretary of Housing and Urban Development or the Secretary of Labor shall direct as a means of enforcing such provisions. 6 HUD 4010 (2-84) complaint or instituted or caused to be instituted any proceeding or has testified or is about to testify in any proceeding under or relating to the labor standards applicable under this Contract to his employer. B Contract Work Hours and Safety Standards Act. As used in this paragraph, the terms "laborers" and "mechanics" include watchmen and guards. (1) Overtime requirements. No contractor or subcontractor contracting for any part of the contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensat ion at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 5 listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 • 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 111.1, Omaha,Nebraska, 68183. Chicano Awareness, 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 2416 Lake Street 4011 Leavenworth Street Omaha, NE 68111 Omaha,NE 68105 Eastern Nebraska Human Services Family Service 900 South 74th Plaza, Suite 200 2101 South 42nd Street Omaha,NE 68114 Omaha,NE 68105 Greater Omaha Community Action Family Service 2406 Fowler Avenue 6720 North 30th Street Omaha,NE 68111 Omaha,NE 68112 Greater Omaha Community Action Family Service 5211 South 31 st Street 116 E. Mission Avenue Omaha,NE 68111 Bellevue,NE 68005 2 l post the HUD Equal Housing Opportunity Logo in the project building and display the Fair Housing Poster in their rental office. 1 surroundings or under working conditions which are unsanitary, hazardous, or dangerous to his health and safety as determined under construction safety and health standards promulgated by the Secretary of Labor by regulation. (2) The Contractor shall comply with all regulations issued by the Secretary of Labor pursuant to Title 29 Part 1926 (formerly part 1518) and failure to comply may result in imposition of sanctions pursuant to the Contract Work Hours and Safety Standards Act (Public Law 91-54, 83 Stat. 96). (3) The Contractor shall include the provisions of this Article in every subcontract so that such provisions will be binding on each subcontractor. The Contractor shall take such action with respect to any subcontract as the Secretary of Housing and Urban Development or the Secretary of Labor shall direct as a means of enforcing such provisions. 6 HUD 4010 (2-84) complaint or instituted or caused to be instituted any proceeding or has testified or is about to testify in any proceeding under or relating to the labor standards applicable under this Contract to his employer. B Contract Work Hours and Safety Standards Act. As used in this paragraph, the terms "laborers" and "mechanics" include watchmen and guards. (1) Overtime requirements. No contractor or subcontractor contracting for any part of the contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensat ion at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 5 listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 • n League of Human Dignity FamilyService g g Y 5513 Center Street 2580 South 90th Street Omaha,NE 68106 Omaha,NE 68124 South Omaha Affordable Housing Corp. Omaha Association for the Blind 3605 "Q" Street 1024 South 32nd Street Omaha, NE 68107 Omaha, NE 68105 Nebraska Commission for the Deaf Paralyzed Veterans of America 1313 Farnam on the Mall 7612 Maple Street Omaha, NE 68102 Omaha, NE 68134 Mayor's Commission for Citizens Holy Name Housing Corporation with Disabilities 3014 North 45th Street 1819 Farnam Street, Room 304 Omaha,NE 68104 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 Omaha,NE 68111 Omaha,NE 68112 Greater Omaha Community Action Family Service 5211 South 31 st Street 116 E. Mission Avenue Omaha,NE 68111 Bellevue,NE 68005 2 l post the HUD Equal Housing Opportunity Logo in the project building and display the Fair Housing Poster in their rental office. 1 surroundings or under working conditions which are unsanitary, hazardous, or dangerous to his health and safety as determined under construction safety and health standards promulgated by the Secretary of Labor by regulation. (2) The Contractor shall comply with all regulations issued by the Secretary of Labor pursuant to Title 29 Part 1926 (formerly part 1518) and failure to comply may result in imposition of sanctions pursuant to the Contract Work Hours and Safety Standards Act (Public Law 91-54, 83 Stat. 96). (3) The Contractor shall include the provisions of this Article in every subcontract so that such provisions will be binding on each subcontractor. The Contractor shall take such action with respect to any subcontract as the Secretary of Housing and Urban Development or the Secretary of Labor shall direct as a means of enforcing such provisions. 6 HUD 4010 (2-84) complaint or instituted or caused to be instituted any proceeding or has testified or is about to testify in any proceeding under or relating to the labor standards applicable under this Contract to his employer. B Contract Work Hours and Safety Standards Act. As used in this paragraph, the terms "laborers" and "mechanics" include watchmen and guards. (1) Overtime requirements. No contractor or subcontractor contracting for any part of the contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensat ion at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 5 listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 • 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 income determination 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 ry, hazardous, or dangerous to his health and safety as determined under construction safety and health standards promulgated by the Secretary of Labor by regulation. (2) The Contractor shall comply with all regulations issued by the Secretary of Labor pursuant to Title 29 Part 1926 (formerly part 1518) and failure to comply may result in imposition of sanctions pursuant to the Contract Work Hours and Safety Standards Act (Public Law 91-54, 83 Stat. 96). (3) The Contractor shall include the provisions of this Article in every subcontract so that such provisions will be binding on each subcontractor. The Contractor shall take such action with respect to any subcontract as the Secretary of Housing and Urban Development or the Secretary of Labor shall direct as a means of enforcing such provisions. 6 HUD 4010 (2-84) complaint or instituted or caused to be instituted any proceeding or has testified or is about to testify in any proceeding under or relating to the labor standards applicable under this Contract to his employer. B Contract Work Hours and Safety Standards Act. As used in this paragraph, the terms "laborers" and "mechanics" include watchmen and guards. (1) Overtime requirements. No contractor or subcontractor contracting for any part of the contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensat ion at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 5 listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 • 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 niversary 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 ry, hazardous, or dangerous to his health and safety as determined under construction safety and health standards promulgated by the Secretary of Labor by regulation. (2) The Contractor shall comply with all regulations issued by the Secretary of Labor pursuant to Title 29 Part 1926 (formerly part 1518) and failure to comply may result in imposition of sanctions pursuant to the Contract Work Hours and Safety Standards Act (Public Law 91-54, 83 Stat. 96). (3) The Contractor shall include the provisions of this Article in every subcontract so that such provisions will be binding on each subcontractor. The Contractor shall take such action with respect to any subcontract as the Secretary of Housing and Urban Development or the Secretary of Labor shall direct as a means of enforcing such provisions. 6 HUD 4010 (2-84) complaint or instituted or caused to be instituted any proceeding or has testified or is about to testify in any proceeding under or relating to the labor standards applicable under this Contract to his employer. B Contract Work Hours and Safety Standards Act. As used in this paragraph, the terms "laborers" and "mechanics" include watchmen and guards. (1) Overtime requirements. No contractor or subcontractor contracting for any part of the contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensat ion at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 5 listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 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). 6 IDUAL ❑ PARTNERSHIP ❑ CORPORATION ❑ IS 51% OWNED BY A MINORITY? YES ❑ NO ❑ NAME AND ADDRESS OF ALL STOCKHOLDERS AND/OR PARTNERS: NAME, TITLE, HOME ADDRESS % OF OWNERSHIP III. MANAGEMENT (USE SAME FORMAT FOR ADDITIONAL MANAGEMENT PERSONNEL): NAME POSITION EDUCATION MANAGEMENT OR TECHNICAL TRAINING 6/22/90 6 ND ATTACHMENT P:\PLN3\13639pjm.doc Exi-r-i 6 Fr - � Click to Print r �' `` E. Office of Management and Budget this document August 29, 1997 MEMORANDUM FOR THE RECORD FROM: Norwood J. Jackson Deputy Controller Office of Federal Financial Management SUBJECT: Recompilation of OMB Circular A-87 I certify that the attached document constitutes a recompilation of Office of Management and Budget Circular A-87, "Cost Principles for State, Local, and Indian Tribal Governments." The recompilation consists of the last complete revision of the Circular published at 60 FR 26484 (dated.May 4, 1995, published May 17, 1995), as further amended at 62 FR 45934 (August 29, 1997). Top of Page OMB CIRCULAR A-87 (REVISED 5/4/95, As Further Amended 8/29/97) CIRCULAR NO. A-87 Revised TO THE HEADS OF EXECUTIVE DEPARTMENTS AND ESTABLISHMENTS SUBJECT: Cost Principles for State, Local, and Indian Tribal Governments 1. Purpose. This Circular establishes principles and standards for determining costs for Federal awards carried out through grants, cost reimbursement contracts, and other agreements with State and local governments and federally-recognized Indian tribal governments (governmental units). 2. Authority. This Circular is issued under the authority of the Budget and Accounting Act of 1921, as amended; the Budget and Accounting Procedures Act of 1950, as amended; the Chief Financial Officers Act of 1990; Reorganization Plan No. 2 of 1970; and Executive Order No. 11541 ("Prescribing the Duties of the Office of Management and Budget and the Domestic Policy Council in the Executive Office of the President"). 3. Background. An interagency task force was established in 1987 to review existing cost principles for Federal awards to State, local, and Indian tribal governments. The task force studied Inspector General reports and recommendations, solicited suggestions for changes to the Circular from I of 53 4/16/03 1:39 F . 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 ry, hazardous, or dangerous to his health and safety as determined under construction safety and health standards promulgated by the Secretary of Labor by regulation. (2) The Contractor shall comply with all regulations issued by the Secretary of Labor pursuant to Title 29 Part 1926 (formerly part 1518) and failure to comply may result in imposition of sanctions pursuant to the Contract Work Hours and Safety Standards Act (Public Law 91-54, 83 Stat. 96). (3) The Contractor shall include the provisions of this Article in every subcontract so that such provisions will be binding on each subcontractor. The Contractor shall take such action with respect to any subcontract as the Secretary of Housing and Urban Development or the Secretary of Labor shall direct as a means of enforcing such provisions. 6 HUD 4010 (2-84) complaint or instituted or caused to be instituted any proceeding or has testified or is about to testify in any proceeding under or relating to the labor standards applicable under this Contract to his employer. B Contract Work Hours and Safety Standards Act. As used in this paragraph, the terms "laborers" and "mechanics" include watchmen and guards. (1) Overtime requirements. No contractor or subcontractor contracting for any part of the contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensat ion at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 5 listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 governmental units, and compared for consistency the provisions of other OMB cost principles circulars covering non-profit organizations and universities. A • proposed revised Circular reflecting the results of those efforts was issued on October 12, 1988, and August 19, 1993. Extensive comments on the proposed revisions, discussions with interest groups, and related developments were considered in developing this revision. 4. Rescissions. This Circular rescinds and supersedes Circular A-87, issued January 15, 1981. 5. Policy. This Circular establishes principles and standards to provide a uniform approach for determining costs and to promote effective program delivery, efficiency, and better relationships between governmental units and the Federal Government. The principles are for determining allowable costs only. They are not intended to identify the circumstances or to dictate the extent of Federal and governmental unit participation in the financing of a particular Federal award. Provision for profit or other increment above cost is outside the scope of this Circular. 6. Definitions. Definitions of key terms used in this Circular are contained in Attachment A, Section B. 7. Required Action. Agencies responsible for administering programs that involve cost reimbursement contracts, grants, and other agreements with governmental units shall issue codified regulations to implement the provisions of this Circular and its Attachments by September 1, 1995. 8. OMB Responsibilities. The Office of Management and Budget (OMB)will review agency regulations and implementation of this Circular, and will provide policy interpretations and assistance to insure effective and efficient implementation. Any exceptions will be subject to approval by OMB. Exceptions will only be made in particular cases where adequate justification is presented. 9. Information Contact. Further information concerning this Circular may be obtained by contacting the Office of Federal Financial Management, Financial Standards and Reporting Branch, Office of Management and Budget, Washington, DC 20503, telephone 202-395-3993. 10. Policy Review Date. OMB Circular A-87 will have a policy review three • years from the date of issuance. 11. Effective Date. This Circular is effective as follows: - For costs charged indirectly or otherwise covered by the cost allocation plans described in Attachments C, D and E, this revision shall be applied to cost allocation plans and indirect cost proposals submitted or prepared for a governmental unit's fiscal year that begins on or after September 1, 1995. - For other costs, this revision shall be applied to all awards or amendments, including continuation or renewal awards, made on or after September 1, 1995. of 53 4/16/03 I:39 PM n every subcontract so that such provisions will be binding on each subcontractor. The Contractor shall take such action with respect to any subcontract as the Secretary of Housing and Urban Development or the Secretary of Labor shall direct as a means of enforcing such provisions. 6 HUD 4010 (2-84) complaint or instituted or caused to be instituted any proceeding or has testified or is about to testify in any proceeding under or relating to the labor standards applicable under this Contract to his employer. B Contract Work Hours and Safety Standards Act. As used in this paragraph, the terms "laborers" and "mechanics" include watchmen and guards. (1) Overtime requirements. No contractor or subcontractor contracting for any part of the contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensat ion at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 5 listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 Attachments Top of Page OMB CIRCULAR NO. A-87 COST PRINCIPLES FOR STATE, LOCAL AND INDIAN TRIBAL GOVERNMENTS TABLE OF CONTENTS Attachment A - General Principles for Determining Allowable Costs Attachment B - Selected Items of Cost Attachment C - State/Local-Wide Central Service Cost Allocation Plans Attachment D - Public Assistance Cost Allocation Plans Attachment E - State and Local Indirect Cost Rate Proposals Top of Page ATTACHMENT A Circular No. A-87 GENERAL PRINCIPLES FOR DETERMINING ALLOWABLE COSTS TABLE OF CONTENTS A. Purpose and Scope 1. Objectives 2. Policy guides 3. Application B. Definitions 1. Approval or authorization of the awarding or cognizant Federal agency 3 of53 4/16/03 1:39 P INING 6/22/90 6 ND ATTACHMENT P:\PLN3\13639pjm.doc 2. Award • 3. Awarding agency 4. Central service cost allocation plan 5. Claim • 6. Cognizant agency 7. Common rule 8. Contract 9. Cost 10. Cost allocation plan 11. Cost objective 12. Federally-recognized Indian tribal government 13. Governmental unit 14. Grantee department or agency 15. Indirect cost rate proposal 16. Local government 17. Public assistance cost allocation plan 18. State C. Basic Guidelines 1. Factors affecting allowability of costs 2. Reasonable costs 3. Allocable costs 4. Applicable credits D. Composition of Cost 1. Total cost 2. Classification of costs 4 of 53 4/16/03 1:39 PM 4/16/03 1:39 P INING 6/22/90 6 ND ATTACHMENT P:\PLN3\13639pjm.doc E. Direct Costs 1. General 2. Application 3. Minor items F. Indirect Costs 1. General 2. Cost allocation plans and indirect cost proposals 3. Limitation on indirect or administrative costs G. Interagency Services H. Required Certifications A. Purpose and Scope 1. Objectives. This Attachment establishes principles for determining the allowable costs incurred by State, local, and federally-recognized Indian tribal governments (governmental units) under grants, cost reimbursement contracts, and other agreements with the Federal Government (collectively referred to in this Circular as "Federal awards"). The principles are for the purpose of cost determination and are not intended to identify the circumstances or dictate the extent of Federal or governmental unit participation in the financing of a particular program or project. The principles are designed to provide that Federal awards bear their fair share of cost recognized under these principles except where restricted or prohibited by law. Provision for profit or other increment above cost is outside the scope of this Circular. 2. Policy guides. a. The application of these principles is based on the fundamental premises that: (1) Governmental units are responsible for the efficient and effective administration of Federal awards through the application of sound management practices. (2) Governmental units assume responsibility for administering Federal funds in a manner consistent with underlying agreements, program objectives, and the terms and conditions of the Federal award. (3) Each governmental unit, in recognition of its own unique combination of staff, facilities, and experience, will have the primary responsibility for employing whatever form of organization and management techniques may be 5 of 53 4/16/03 1:39 Pr\ justification is presented. 9. Information Contact. Further information concerning this Circular may be obtained by contacting the Office of Federal Financial Management, Financial Standards and Reporting Branch, Office of Management and Budget, Washington, DC 20503, telephone 202-395-3993. 10. Policy Review Date. OMB Circular A-87 will have a policy review three • years from the date of issuance. 11. Effective Date. This Circular is effective as follows: - For costs charged indirectly or otherwise covered by the cost allocation plans described in Attachments C, D and E, this revision shall be applied to cost allocation plans and indirect cost proposals submitted or prepared for a governmental unit's fiscal year that begins on or after September 1, 1995. - For other costs, this revision shall be applied to all awards or amendments, including continuation or renewal awards, made on or after September 1, 1995. of 53 4/16/03 I:39 PM n every subcontract so that such provisions will be binding on each subcontractor. The Contractor shall take such action with respect to any subcontract as the Secretary of Housing and Urban Development or the Secretary of Labor shall direct as a means of enforcing such provisions. 6 HUD 4010 (2-84) complaint or instituted or caused to be instituted any proceeding or has testified or is about to testify in any proceeding under or relating to the labor standards applicable under this Contract to his employer. B Contract Work Hours and Safety Standards Act. As used in this paragraph, the terms "laborers" and "mechanics" include watchmen and guards. (1) Overtime requirements. No contractor or subcontractor contracting for any part of the contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensat ion at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 5 listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 • necessary to assure proper and efficient administration of Federal awards. • b. Federal agencies should work with States or localities which wish to test alternative mechanisms for paying costs for administering Federal programs. The Office of Management and Budget (OMB) encourages Federal agencies to test fee-for-service alternatives as a replacement for current cost-reimbursement payment methods in response to the National Performance Review's (NPR) recommendation. The NPR recommended the fee-for-service approach to reduce the burden associated with maintaining systems for charging administrative costs to Federal programs and preparing and approving cost allocation plans. This approach should also increase incentives for administrative efficiencies and improve outcomes. 3. Application. a. These principles will be applied by all,Federal agencies in determining costs incurred by governmental units under Federal awards (including subawards) except those with (1) publicly-financed educational institutions subject to OMB Circular A-21, "Cost Principles for Educational Institutions," and (2) programs administered by publicly-owned hospitals and other providers of medical care that are subject to requirements promulgated by the sponsoring Federal agencies. However, this Circular does apply to all central service and department/agency costs that are allocated or billed to those educational institutions, hospitals, and other providers of medical care or services by other State and local government departments and agencies. b. All subawards are subject to those Federal cost principles applicable to the particular organization concerned. Thus, if a subaward is to a governmental unit (other than a college, university or hospital), this Circular shall apply; if a subaward is to a commercial organization, the cost principles applicable to commercial organizations shall apply; if a subaward is to a college or university, Circular A-21 shall apply; if a subaward is to a hospital, the cost principles used by the Federal awarding agency for awards to hospitals shall apply, subject to the provisions of subsection A.3.a. of this Attachment; if a subaward is to some other non-profit organization, Circular A-122, "Cost Principles for Non-Profit Organizations," shall apply. c. These principles shall be used as a guide in the pricing of fixed price arrangements where costs are used in determining the appropriate price. d. Where a Federal contract awarded to a governmental unit incorporates a Cost Accounting Standards (CAS) clause, the requirements of that clause shall apply. In such cases, the governmental unit and the cognizant Federal agency shall establish an appropriate advance agreement on how the governmental unit will comply with applicable CAS requirements when estimating, accumulating and reporting costs under CAS-covered contracts. The agreement shall indicate that OMB Circular A-87 requirements will be applied to other Federal awards. In all cases, only one set of records needs to be maintained by the governmental unit. e. Conditional exemptions. 6 of53 4/16/03 1:39 PM standards applicable under this Contract to his employer. B Contract Work Hours and Safety Standards Act. As used in this paragraph, the terms "laborers" and "mechanics" include watchmen and guards. (1) Overtime requirements. No contractor or subcontractor contracting for any part of the contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensat ion at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 5 listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 • (1) 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. (2) 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. (3) When a Federal agency provides this flexibility, as a prerequisite to a State's exercising this option, a State must adopt its own written fiscal and administrative requirements for expending and accounting for all funds, which are consistent with the provisions of OMB Circular A-87, and extend such policies to all subrecipients. These fiscal and administrative requirements must be sufficiently specific to ensure that: funds are used in compliance with all applicable Federal statutory and regulatory provisions, costs are reasonable and necessary for operating these programs, and funds are not be used for general expenses required to carry out other responsibilities of a State or its subrecipients. B. Definitions 1. "Approval or authorization of the awarding or cognizant Federal agency" means documentation evidencing consent prior to incurring a specific cost. If such costs are specifically identified in a Federal award document, approval of the document constitutes approval of the costs. If the costs are covered by a State/local-wide cost allocation plan or an indirect cost proposal, approval of the plan constitutes the approval. 2. "Award" means grants, cost reimbursement contracts and other agreements between a State, local and Indian tribal government and the Federal Government. 3. "Awarding agency" means (a) with respect to a grant, cooperative agreement, or cost reimbursement contract, the Federal agency, and (b) with respect to a 7 of53 4/16/03 1:39 Pt' eement shall indicate that OMB Circular A-87 requirements will be applied to other Federal awards. In all cases, only one set of records needs to be maintained by the governmental unit. e. Conditional exemptions. 6 of53 4/16/03 1:39 PM standards applicable under this Contract to his employer. B Contract Work Hours and Safety Standards Act. As used in this paragraph, the terms "laborers" and "mechanics" include watchmen and guards. (1) Overtime requirements. No contractor or subcontractor contracting for any part of the contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensat ion at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 5 listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 subaward, the party that awarded the subaward. • 4. "Central service cost allocation plan" means the documentation identifying, accumulating, and allocating or developing billing rates based on the allowable costs of services provided by a governmental unit on a centralized basis to its departments and agencies. The costs of these services may be allocated or billed to users. 5. "Claim" means a written demand or written assertion by the governmental unit or grantor seeking, as a matter of right, the payment of money in a sum certain, the adjustment or interpretation of award terms, or other relief arising under or relating to the award. A voucher, invoice or other routine request for payment that is not a dispute when submitted is not a claim. Appeals, such as those filed by a governmental unit in response to questioned audit costs, are not considered claims until a final management decision is made by the Federal awarding agency. • 6. "Cognizant agency" means the Federal agency responsible for reviewing, negotiating, and approving cost allocation plans or indirect cost proposals developed under this Circular on behalf of all Federal agencies. OMB publishes a listing of cognizant agencies. 7. "Common Rule" means the "Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments; Final Rule" originally issued at 53 FR 8034-8103 (March 11, 1988). Other common rules will be referred to by their specific titles. • 8. "Contract" means a mutually binding legal relationship obligating the seller to furnish the supplies or services (including construction) and the buyer to pay for them. It includes all types of commitments that obligate the government to an expenditure of appropriated funds and that, except as otherwise authorized, are in writing. In addition to bilateral instruments, contracts include (but are not limited to): awards and notices of awards;job orders or task orders issued under basic ordering agreements; letter contracts; orders, such as purchase orders,under which the contract becomes effective by written acceptance or performance; and, bilateral contract modifications. Contracts do not include grants and cooperative agreements covered by 31 U.S.C. 6301 et seq. 9. "Cost" means an amount as determined on a cash, accrual, or other basis acceptable to the Federal awarding or cognizant agency. It does not include transfers to a general or similar fund. 10. "Cost allocation plan" means central service cost allocation plan, public assistance cost allocation plan, and indirect cost rate proposal. Each of these terms are further defined in this section. 11. "Cost objective" means a function, organizational subdivision, contract, grant, or other activity for which cost data are needed and for which costs are incurred. 8 of 53 4/16/03 1:39 PM the Federal agency, and (b) with respect to a 7 of53 4/16/03 1:39 Pt' eement shall indicate that OMB Circular A-87 requirements will be applied to other Federal awards. In all cases, only one set of records needs to be maintained by the governmental unit. e. Conditional exemptions. 6 of53 4/16/03 1:39 PM standards applicable under this Contract to his employer. B Contract Work Hours and Safety Standards Act. As used in this paragraph, the terms "laborers" and "mechanics" include watchmen and guards. (1) Overtime requirements. No contractor or subcontractor contracting for any part of the contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensat ion at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 5 listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 12. "Federally-recognized Indian tribal government" means the governing body or a governmental agency of any Indian tribe, band, nation, or other organized group or community (including any native village as defined in Section 3 of the Alaska Native Claims Settlement Act, 85 Stat. 688) certified by the Secretary of the Interior as eligible for the special programs and services provided through the Bureau of Indian Affairs. 13. "Governmental unit" means the entire State, local, or federally-recognized Indian tribal government, including any component thereof. Components of governmental units may function independently of the governmental unit in accordance with the term of the award. 14. "Grantee department or agency" means the component of a State, local, or federally-recognized Indian tribal government which is responsible for the performance or administration of all or some part of a Federal award. 15. "Indirect cost rate proposal" means the documentation prepared by a governmental unit or component thereof to substantiate its request for the establishment of an indirect cost rate as described in Attachment E of this Circular. 16. "Local government" means a county, municipality, city, town, township, local public authority, school district, special district, intrastate district, council of governments (whether or not incorporated as a non-profit corporation under State law), any other regional or interstate government entity, or any agency or instrumentality of a local government. 17. "Public assistance cost allocation plan" means a narrative description of the procedures that will be used in identifying, measuring and allocating all administrative costs to all of the programs administered or supervised by State public assistance agencies as described in Attachment D of this Circular. 18. "State" means any of the several States of the United States, the District of Columbia, the Commonwealth of Puerto Rico, any territory or possession of the United States, or any agency or instrumentality of a State exclusive of local governments. C. Basic Guidelines 1. Factors affecting allowability of costs. To be allowable under Federal awards, costs must meet the following general criteria: a. Be necessary and reasonable for proper and efficient performance and administration of Federal awards. b. Be allocable to Federal awards under the provisions of this Circular. c. Be authorized or not prohibited under State or local laws or regulations. d. Conform to any limitations or exclusions set forth in these principles, Federal 9 of53 4/16/03 1:39 P assistance cost allocation plan, and indirect cost rate proposal. Each of these terms are further defined in this section. 11. "Cost objective" means a function, organizational subdivision, contract, grant, or other activity for which cost data are needed and for which costs are incurred. 8 of 53 4/16/03 1:39 PM the Federal agency, and (b) with respect to a 7 of53 4/16/03 1:39 Pt' eement shall indicate that OMB Circular A-87 requirements will be applied to other Federal awards. In all cases, only one set of records needs to be maintained by the governmental unit. e. Conditional exemptions. 6 of53 4/16/03 1:39 PM standards applicable under this Contract to his employer. B Contract Work Hours and Safety Standards Act. As used in this paragraph, the terms "laborers" and "mechanics" include watchmen and guards. (1) Overtime requirements. No contractor or subcontractor contracting for any part of the contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensat ion at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 5 listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 • laws, terms and conditions of the Federal award, or other governing regulations as to types or amounts of cost items. • e. Be consistent with policies, regulations, and procedures that apply uniformly to both Federal awards and other activities of the governmental unit. f. Be accorded consistent treatment. A cost may not be assigned to a Federal award as a direct cost if any other cost incurred for the same purpose in like circumstances has been allocated to the Federal award as an indirect cost. g. Except as otherwise provided for in this Circular,be determined in accordance with generally accepted accounting principles. h. Not be included as a cost or used to meet cost sharing or matching requirements of any other Federal award in either the current or a prior period, except as specifically provided by Federal law or regulation. i. Be the net of all applicable credits. j. Be adequately documented. 2. Reasonable costs. A cost is reasonable if, in its nature and 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 cost. The question of reasonableness is particularly important when governmental units or components are predominately federally- funded. In determining 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 governmental unit or the performance of the Federal award. b. The restraints or requirements imposed by such factors as: sound business practices; arms length bargaining; Federal, State and other laws and regulations; and, terms and conditions of the Federal award. c. Market prices for comparable goods or services. d. Whether the individuals concerned acted with prudence in the circumstances considering their responsibilities to the governmental unit, its employees, the public at large, and the Federal Government. e. Significant deviations from the established practices of the governmental unit which may unjustifiably increase the Federal award's cost. 3. Allocable costs. a. A cost is allocable to a particular cost objective if the goods or services involved are chargeable or assignable to such cost objective in accordance with relative benefits received. 0 of 53 4/16/03 1:39 PM ns set forth in these principles, Federal 9 of53 4/16/03 1:39 P assistance cost allocation plan, and indirect cost rate proposal. Each of these terms are further defined in this section. 11. "Cost objective" means a function, organizational subdivision, contract, grant, or other activity for which cost data are needed and for which costs are incurred. 8 of 53 4/16/03 1:39 PM the Federal agency, and (b) with respect to a 7 of53 4/16/03 1:39 Pt' eement shall indicate that OMB Circular A-87 requirements will be applied to other Federal awards. In all cases, only one set of records needs to be maintained by the governmental unit. e. Conditional exemptions. 6 of53 4/16/03 1:39 PM standards applicable under this Contract to his employer. B Contract Work Hours and Safety Standards Act. As used in this paragraph, the terms "laborers" and "mechanics" include watchmen and guards. (1) Overtime requirements. No contractor or subcontractor contracting for any part of the contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensat ion at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 5 listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 b. All activities which benefit from the governmental unit's indirect cost, including unallowable activities and services donated to the governmental unit by third parties, will receive an appropriate allocation of indirect costs. c. Any cost allocable to a particular Federal award or cost objective under the principles provided for in this Circular may not be charged to other Federal awards to overcome fund deficiencies, to avoid restrictions imposed by law or terms of the Federal awards, or for other reasons. However, this prohibition would not preclude governmental units from shifting costs that are allowable under two or more awards in accordance with existing program agreements. d. Where an accumulation of indirect costs will ultimately result in charges to a Federal award, a cost allocation plan will be required as described in Attachments C, D, and E. 4. Applicable credits. a. Applicable credits refer to those receipts or reduction of expenditure-type transactions that offset or reduce expense items allocable to Federal awards as direct or indirect costs. Examples of such transactions are: purchase discounts, rebates or allowances, recoveries or indemnities on losses, insurance refunds or rebates, and adjustments of overpayments or erroneous charges. To the extent that such credits accruing to or received by the governmental unit relate to allowable costs, they shall be credited to the Federal award either as a cost reduction or cash refund, as appropriate. b. In some instances, the amounts received from the Federal Government to finance activities or service operations of the governmental unit should be treated as applicable credits. Specifically, the concept of netting such credit items (including any amounts used to meet cost sharing or matching requirements) should be recognized in determining the rates or amounts to be charged to Federal awards. (See Attachment B, item 15, "Depreciation and use allowances," for areas of potential application in the matter of Federal financing of activities.) D. Composition of Cost 1. Total cost. The total cost of Federal awards is comprised of the allowable direct cost of the program, plus its allocable portion of allowable indirect costs, less applicable credits. 2. Classification of costs. There is no universal rule for classifying certain costs as either direct or indirect under every accounting system. A cost may be direct with respect to some specific service or function, but indirect with respect to the Federal award or other final cost objective. Therefore, it is essential that each item of cost be treated consistently in like circumstances either as a direct or an indirect cost. Guidelines for determining direct and indirect costs charged to I I of 53 4/16/03 1:39 PN unction, organizational subdivision, contract, grant, or other activity for which cost data are needed and for which costs are incurred. 8 of 53 4/16/03 1:39 PM the Federal agency, and (b) with respect to a 7 of53 4/16/03 1:39 Pt' eement shall indicate that OMB Circular A-87 requirements will be applied to other Federal awards. In all cases, only one set of records needs to be maintained by the governmental unit. e. Conditional exemptions. 6 of53 4/16/03 1:39 PM standards applicable under this Contract to his employer. B Contract Work Hours and Safety Standards Act. As used in this paragraph, the terms "laborers" and "mechanics" include watchmen and guards. (1) Overtime requirements. No contractor or subcontractor contracting for any part of the contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensat ion at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 5 listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 • Federal awards are provided in the sections that follow. • E. Direct Costs 1. General. Direct costs are those that can be identified specifically with a particular final cost objective. 2. Application. Typical direct costs chargeable to Federal awards are: a. Compensation of employees for the time devoted and identified specifically to the performance of those awards. b. Cost of materials acquired, consumed, or expended specifically for the purpose of those awards. c. Equipment and other approved capital expenditures. d. Travel expenses incurred specifically to carry out the award. 3. Minor items. Any direct cost of a minor amount may be treated as an indirect cost for reasons of practicality where such accounting treatment for that item of cost is consistently applied to all cost objectives. F. Indirect Costs 1. General. Indirect costs are those: (a) incurred for a common or joint purpose benefiting more than one cost objective, and (b) not readily assignable to the cost objectives specifically benefitted, without effort disproportionate to the results achieved. The term "indirect costs," as used herein, applies to costs of this type originating in the grantee department, as well as those incurred by other departments in supplying goods, services, and facilities. To facilitate equitable distribution of indirect expenses to the cost objectives served, it may be necessary to establish a number of pools of indirect costs within a governmental unit department or in other agencies providing services to a governmental unit department. Indirect cost pools should be distributed to benefitted cost objectives on bases that will produce an equitable result in consideration of relative benefits derived. 2. Cost allocation plans and indirect cost proposals. Requirements for development and submission of cost allocation plans and indirect cost rate proposals are contained in Attachments C, D, and E. 3. Limitation on indirect or administrative costs.- a. In addition to restrictions contained in this Circular, there may be laws that further limit the amount of administrative or indirect cost allowed. b. Amounts not recoverable as indirect costs or administrative costs under one Federal award may not be shifted to another Federal award, unless specifically authorized by Federal legislation or regulation. 12 of 53 4/16/03 1:39 Plv ific service or function, but indirect with respect to the Federal award or other final cost objective. Therefore, it is essential that each item of cost be treated consistently in like circumstances either as a direct or an indirect cost. Guidelines for determining direct and indirect costs charged to I I of 53 4/16/03 1:39 PN unction, organizational subdivision, contract, grant, or other activity for which cost data are needed and for which costs are incurred. 8 of 53 4/16/03 1:39 PM the Federal agency, and (b) with respect to a 7 of53 4/16/03 1:39 Pt' eement shall indicate that OMB Circular A-87 requirements will be applied to other Federal awards. In all cases, only one set of records needs to be maintained by the governmental unit. e. Conditional exemptions. 6 of53 4/16/03 1:39 PM standards applicable under this Contract to his employer. B Contract Work Hours and Safety Standards Act. As used in this paragraph, the terms "laborers" and "mechanics" include watchmen and guards. (1) Overtime requirements. No contractor or subcontractor contracting for any part of the contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensat ion at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 5 listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 G. Interagency Services. The cost of services provided by one agency to another within the governmental unit may include allowable direct costs of the service plus a pro rate share of indirect costs. A standard indirect cost allowance equal to ten percent of the direct salary and wage cost of providing the service (excluding overtime, shift premiums, and fringe benefits) may be used in lieu of determining the actual indirect costs of the service. These services do not include centralized services included in central service cost allocation plans as described in Attachment C. H. Required Certifications. Each cost allocation plan or indirect cost rate proposal required by Attachments C and E must comply with the following: 1. No proposal to establish a cost allocation plan or an indirect cost rate, whether submitted to a Federal cognizant agency or maintained on file by the governmental unit, shall be acceptable unless such costs have been certified by the governmental unit using the Certificate of Cost Allocation Plan or Certificate of Indirect Costs as set forth in Attachments C and E. The certificate must be signed on behalf of the governmental unit by an individual at a level no lower than chief financial officer of the governmental unit that submits the proposal or component covered by the proposal. 2. No cost allocation plan or indirect cost rate shall be approved by the Federal Government unless the plan or rate proposal has been certified. Where it is necessary to establish a cost allocation plan or an indirect cost rate and the governmental unit has not submitted a certified proposal for establishing such a plan or rate in accordance with the requirements, the Federal Government may either disallow all indirect costs or unilaterally establish such a plan or rate. Such a plan or rate may be based upon audited historical data or such other data that have been furnished to the cognizant Federal agency and for which it can be demonstrated that all unallowable costs have been excluded. When a cost allocation plan or indirect cost rate is unilaterally established by the Federal Government because of failure of the governmental unit to submit a certified proposal, the plan or rate established will be set to ensure that potentially unallowable costs will not be reimbursed. Top of Page ATTACHMENT B Circular No. A-87 SELECTED ITEMS OF COST TABLE OF CONTENTS 1. Accounting 2. Advertising and public relations costs 3. Advisory councils 4. Alcoholic beverages 13 of 53 4/16/03 1:39 Pt ed consistently in like circumstances either as a direct or an indirect cost. Guidelines for determining direct and indirect costs charged to I I of 53 4/16/03 1:39 PN unction, organizational subdivision, contract, grant, or other activity for which cost data are needed and for which costs are incurred. 8 of 53 4/16/03 1:39 PM the Federal agency, and (b) with respect to a 7 of53 4/16/03 1:39 Pt' eement shall indicate that OMB Circular A-87 requirements will be applied to other Federal awards. In all cases, only one set of records needs to be maintained by the governmental unit. e. Conditional exemptions. 6 of53 4/16/03 1:39 PM standards applicable under this Contract to his employer. B Contract Work Hours and Safety Standards Act. As used in this paragraph, the terms "laborers" and "mechanics" include watchmen and guards. (1) Overtime requirements. No contractor or subcontractor contracting for any part of the contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensat ion at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 5 listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 • 5. Audit services 6. Automatic electronic data processing 7. Bad debts 8. Bonding costs 9. Budgeting 10. Communications 11. Compensation for personnel services a. General b. Reasonableness c. Unallowable costs d. Fringe benefits e. Pension plan costs f. Post-retirement health benefits g. Severance Pay h. Support of salaries and wages i. Donated services 12. Contingencies 13. Contributions and donations 14. Defense and prosecution of criminal and civil proceedings, and claims 15. Depreciation and use allowances 16. Disbursing service 17. Employee morale, health, and welfare costs 18. Entertainment 19. Equipment and other capital expenditures 20. Fines and penalties 21. Fund raising and investment management costs 22. Gains and losses on disposition of depreciable property and other capital assets and substantial relocation of Federal programs. 23. General government expenses 24. Idle facilities and idle capacity 25. Insurance and indemnification 26. Interest 27. Lobbying 28. Maintenance, operations, and repairs 29. Materials and supplies 30. Memberships, subscriptions, and professional activities 31. Motor pools 32. Pre-award costs 33. Professional service costs 34. Proposal costs 35. Publication and printing costs 36. Rearrangements and alterations 37. Reconversion costs 38. Rental costs 39. Taxes 40. Training 41. Travel costs 42. Underrecovery of costs under Federal agreements Sections 1 through 42 provide principles to be applied in establishing the i 4 of 53 4/16/03 1:39 PM rate. Such a plan or rate may be based upon audited historical data or such other data that have been furnished to the cognizant Federal agency and for which it can be demonstrated that all unallowable costs have been excluded. When a cost allocation plan or indirect cost rate is unilaterally established by the Federal Government because of failure of the governmental unit to submit a certified proposal, the plan or rate established will be set to ensure that potentially unallowable costs will not be reimbursed. Top of Page ATTACHMENT B Circular No. A-87 SELECTED ITEMS OF COST TABLE OF CONTENTS 1. Accounting 2. Advertising and public relations costs 3. Advisory councils 4. Alcoholic beverages 13 of 53 4/16/03 1:39 Pt ed consistently in like circumstances either as a direct or an indirect cost. Guidelines for determining direct and indirect costs charged to I I of 53 4/16/03 1:39 PN unction, organizational subdivision, contract, grant, or other activity for which cost data are needed and for which costs are incurred. 8 of 53 4/16/03 1:39 PM the Federal agency, and (b) with respect to a 7 of53 4/16/03 1:39 Pt' eement shall indicate that OMB Circular A-87 requirements will be applied to other Federal awards. In all cases, only one set of records needs to be maintained by the governmental unit. e. Conditional exemptions. 6 of53 4/16/03 1:39 PM standards applicable under this Contract to his employer. B Contract Work Hours and Safety Standards Act. As used in this paragraph, the terms "laborers" and "mechanics" include watchmen and guards. (1) Overtime requirements. No contractor or subcontractor contracting for any part of the contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensat ion at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 5 listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 allowability or unallowability of certain items of cost. These principles apply whether a cost is treated as direct or indirect. A cost is allowable for Federal reimbursement only to the extent of benefits received by Federal awards and its conformance with the general policies and principles stated in Attachment A to this Circular. Failure to mention a particular item of cost in these sections is not intended to imply that it is either allowable or unallowable; rather, determination of allowability in each case should be based on the treatment or standards provided for similar or related items of cost. 1. Accounting. The cost of establishing and maintaining accounting and other information systems is allowable. 2. 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 programs, direct mail, exhibits, and the like. b. The term "public relations" includes community relations and means those activities dedicated to maintaining the image of the governmental unit or maintaining or promoting understanding and favorable relations with the ' community or public at large or any segment of the public. c. Advertising costs are allowable only when incurred for the recruitment of personnel, the procurement of goods and services, the disposal of surplus materials, and any other specific purposes necessary to meet the requirements of the Federal award. Advertising costs associated with the disposal of surplus materials are not allowable where all disposal costs are reimbursed based on a standard rate as specified in the grants management common rule. d. Public relations costs are allowable when: (1) Specifically required by the Federal award and then only as a direct cost; (2) Incurred to communicate with the public and press pertaining to specific activities or accomplishments that result from performance of the Federal award and then only as a direct cost; or (3) Necessary to conduct general liaison with news media and government public relations officers, to the extent that such activities are limited to communication and liaison necessary to keep the public informed on matters of public concern, such as notices of Federal contract/grant awards, financial matters, etc. e. Unallowable advertising and public relations costs include the following: (1) All advertising and public relations costs other than as specified in subsections c. and d.; (2) Except as otherwise permitted by these cost principles, costs of conventions, meetings, or other events related to other activities of the governmental unit 15 of 53 4/16/03 1:39 P1` I of 53 4/16/03 1:39 PN unction, organizational subdivision, contract, grant, or other activity for which cost data are needed and for which costs are incurred. 8 of 53 4/16/03 1:39 PM the Federal agency, and (b) with respect to a 7 of53 4/16/03 1:39 Pt' eement shall indicate that OMB Circular A-87 requirements will be applied to other Federal awards. In all cases, only one set of records needs to be maintained by the governmental unit. e. Conditional exemptions. 6 of53 4/16/03 1:39 PM standards applicable under this Contract to his employer. B Contract Work Hours and Safety Standards Act. As used in this paragraph, the terms "laborers" and "mechanics" include watchmen and guards. (1) Overtime requirements. No contractor or subcontractor contracting for any part of the contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensat ion at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 5 listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 • 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; and (4) Costs of advertising and public relations designed solely to promote the governmental unit. 3. 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. 4. Alcoholic beverages. Costs of alcoholic beverages are unallowable. 5. Audit services. The costs of audits are allowable provided that the audits were performed in accordance with the Single Audit Act, as implemented by Circular A-128, "Audits of State and Local Governments." [Note: In June 1997, OMB rescinded Circular A-128 and co-located all audit requirements in a re-titled Circular A-133, "Audits of States, Local Governments, and Non-Profit Organizations."] Generally, the percentage of costs charged to Federal awards for a single audit shall not exceed the percentage derived by dividing Federal funds expended by total funds expended by the recipient or subrecipient (including program matching funds) during the fiscal year. The percentage may be exceeded only if appropriate documentation demonstrates higher actual costs. Other audit costs are allowable if specifically approved by the awarding or cognizant agency as a direct cost to an award or included as an indirect cost in a cost allocation plan or rate. 6. Automatic electronic data processing. The cost of data processing services is allowable (but see section 19, Equipment and other capital expenditures). 7. Bad debts. Any losses arising from uncollectible accounts and other claims, and related costs, are unallowable unless provided for in Federal program award regulations. 8. Bonding costs. Costs of bonding employees and officials are allowable to the extent that such bonding is in accordance with sound business practice. 9. Budgeting. Costs incurred for the development, preparation, presentation, and execution of budgets are allowable. 6 of 53 4/16/03 1:39 PM ples, costs of conventions, meetings, or other events related to other activities of the governmental unit 15 of 53 4/16/03 1:39 P1` I of 53 4/16/03 1:39 PN unction, organizational subdivision, contract, grant, or other activity for which cost data are needed and for which costs are incurred. 8 of 53 4/16/03 1:39 PM the Federal agency, and (b) with respect to a 7 of53 4/16/03 1:39 Pt' eement shall indicate that OMB Circular A-87 requirements will be applied to other Federal awards. In all cases, only one set of records needs to be maintained by the governmental unit. e. Conditional exemptions. 6 of53 4/16/03 1:39 PM standards applicable under this Contract to his employer. B Contract Work Hours and Safety Standards Act. As used in this paragraph, the terms "laborers" and "mechanics" include watchmen and guards. (1) Overtime requirements. No contractor or subcontractor contracting for any part of the contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensat ion at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 5 listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 10. Communications. Costs of telephone, mail, messenger, and similar communication services are allowable. 11. Compensation for personnel services. a. General. Compensation for personnel services includes all remuneration, paid currently or accrued, for services rendered during the period of performance under Federal awards, including but not necessarily limited to wages, salaries, and fringe benefits. The costs of such compensation are allowable to the extent that they satisfy the specific requirements of this Circular, and that the total compensation for individual employees: (1) Is reasonable for the services rendered and conforms to the established policy of the governmental unit consistently applied to both.Federal and non-Federal activities; (2) Follows an appointment made in accordance with a governmental unit's laws and rules and meets merit system or other requirements required by Federal law, where applicable; and (3) Is determined and supported as provided in subsection h. b. Reasonableness. Compensation for employees engaged in work on Federal awards will be considered reasonable to the extent that it is consistent with that paid for similar work in other activities of the governmental unit. In cases where the kinds of employees required for Federal awards are not found in the other activities of the governmental unit, compensation will be considered reasonable to the extent that it is comparable to that paid for similar work in the labor market in which the employing government competes for the kind of employees involved. Compensation surveys providing data representative of the labor market involved will be an acceptable basis for evaluating reasonableness. c. Unallowable costs. Costs which are unallowable under other sections of these principles shall not be allowable under this section solely on the basis that they constitute personnel compensation. d. Fringe benefits. (1) Fringe benefits are allowances and services provided by employers to their employees as compensation in addition to regular salaries and wages. Fringe benefits include, but are not limited to, the costs of leave, employee insurance, pensions, and unemployment benefit plans. Except as provided elsewhere in these principles, the costs of fringe benefits are allowable to the extent that the benefits are reasonable and are required by law, governmental unit-employee agreement, or an established policy of the governmental unit. (2) The cost of fringe benefits in the form of regular compensation paid to employees during periods of authorized absences from the job, such as for annual leave, sick leave, holidays, court leave, military leave, and other similar benefits, are allowable if: (a) they are provided under established written leave policies; 17 of 53 4/16/03 1:39 PI act, grant, or other activity for which cost data are needed and for which costs are incurred. 8 of 53 4/16/03 1:39 PM the Federal agency, and (b) with respect to a 7 of53 4/16/03 1:39 Pt' eement shall indicate that OMB Circular A-87 requirements will be applied to other Federal awards. In all cases, only one set of records needs to be maintained by the governmental unit. e. Conditional exemptions. 6 of53 4/16/03 1:39 PM standards applicable under this Contract to his employer. B Contract Work Hours and Safety Standards Act. As used in this paragraph, the terms "laborers" and "mechanics" include watchmen and guards. (1) Overtime requirements. No contractor or subcontractor contracting for any part of the contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensat ion at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 5 listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 • (b) the costs are equitably allocated to all related activities, including Federal awards; and, (c) the accounting basis (cash or accrual) selected for costing each type of leave is consistently followed by the governmental unit. (3) When a governmental unit uses the cash basis of accounting, the cost of leave is recognized in the period that the leave is taken and paid for. Payments for unused leave when an employee retires or terminates employment are allowable in the year of payment provided they are allocated as a general administrative expense to all activities of the governmental unit or component. (4) The accrual basis may be only used for those types of leave for which a liability as defined by Generally Accepted Accounting Principles (GAAP) exists when the leave is earned. When a governmental unit uses the accrual basis of accounting, in accordance with.GAAP, allowable leave costs are the lesser of the amount accrued or funded. (5) The cost of fringe benefits in the form of employer contributions or expenses for social security; employee life, health, unemployment, and worker's compensation insurance (except as indicated in section 25, Insurance and indemnification); pension plan costs (see subsection e.); and other similar benefits are allowable, provided such benefits are granted under established written policies. Such benefits, whether treated as indirect costs or as direct costs, shall be allocated to Federal awards and all other activities in a manner consistent with the pattern of benefits attributable to the individuals or group(s) of employees whose salaries and wages are chargeable to such Federal awards and other activities. e. Pension plan costs. Pension plan costs may be computed using a pay-as-you-go method or an acceptable actuarial cost method in accordance with established written policies of the governmental unit. (1) For pension plans financed on a pay-as-you-go method, allowable costs will be limited to those representing actual payments to retirees or their beneficiaries. (2) Pension costs calculated using an actuarial cost-based method recognized by GAAP are allowable for a given fiscal year if they are funded for that year within six months after the end of that year. Costs funded after the six month period (or a later period agreed to by the cognizant agency) are allowable in the year funded. The cognizant agency may agree to an extension of the six month period if an appropriate adjustment is made to compensate for the timing of the charges to the Federal Government and related Federal reimbursement and the governmental unit's contribution to the pension fund. Adjustments may be made by cash refund or other equitable procedures to compensate the Federal Government for the time value of Federal reimbursements in excess of contributions to the pension fund. (3) Amounts funded by the governmental unit in excess of the actuarially determined amount for a fiscal year may be used as the governmental unit's contribution in future periods. 18 of 53 4/16/03 1:39 PM set of records needs to be maintained by the governmental unit. e. Conditional exemptions. 6 of53 4/16/03 1:39 PM standards applicable under this Contract to his employer. B Contract Work Hours and Safety Standards Act. As used in this paragraph, the terms "laborers" and "mechanics" include watchmen and guards. (1) Overtime requirements. No contractor or subcontractor contracting for any part of the contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensat ion at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 5 listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 (4) When a governmental unit converts to an acceptable actuarial cost method, as defined by GAAP, and funds pension costs in accordance with this method, the unfunded liability at the time of conversion shall be allowable if amortized over a period of years in accordance with GAAP. (5) The Federal Government shall receive an equitable share of any previously allowed pension costs (including earnings thereon) which revert or inure to the governmental unit in the form of a refund, withdrawal, or other credit. f. Post-retirement health benefits. Post-retirement health benefits (PRHB)refers to costs of health insurance or health services not included in a pension plan covered by subsection e. for retirees and their spouses, dependents, and survivors. PRHB costs may be computed using a pay-as-you-go method or an acceptable actuarial cost method in accordance with established written polices of the governmental unit. (1) For PRHB financed on a pay as-you-go method, allowable costs will be limited to those representing actual payments to retirees or their beneficiaries. (2) PRHB costs calculated using an actuarial cost method recognized by GAAP are allowable if they are funded for that year within six months after the end of that year. Costs funded after the six month period (or a later period agreed to by the cognizant agency) are allowable in the year funded. The cognizant agency may agree to an extension of the six month period if an appropriate adjustment is made to compensate for the timing of the charges to the Federal Government and related Federal reimbursements and the governmental unit's contributions to the PRHB fund. Adjustments may be made by cash refund, reduction in current year's PRHB costs, or other equitable procedures to compensate the Federal Government for the time value of Federal reimbursements in excess of contributions to the PRHB fund. (3) Amounts funded in excess of the actuarially determined amount for a fiscal year may be used as the government's contribution in a future period. (4) When a governmental unit converts to an acceptable actuarial cost method and funds PRHB costs in accordance with this method, the initial unfunded liability attributable to prior years shall be allowable if amortized over a period of years in accordance with GAAP, or, if no such GAAP period exists, over a period negotiated with the cognizant agency. (5) To be allowable in the current year, the PRHB costs must be paid either to: (a) An insurer or other benefit provider as current year costs or premiums, or (b) An insurer or trustee to maintain a trust fund or reserve for the sole purpose of providing post-retirement benefits to retirees and other beneficiaries. (6) The Federal Government shall receive an equitable share of any amounts of previously allowed post-retirement benefit costs (including earnings thereon) which revert or inure to the governmental unit in the form of a refund, 19 of 53 4/16/03 1:39 PP funded by the governmental unit in excess of the actuarially determined amount for a fiscal year may be used as the governmental unit's contribution in future periods. 18 of 53 4/16/03 1:39 PM set of records needs to be maintained by the governmental unit. e. Conditional exemptions. 6 of53 4/16/03 1:39 PM standards applicable under this Contract to his employer. B Contract Work Hours and Safety Standards Act. As used in this paragraph, the terms "laborers" and "mechanics" include watchmen and guards. (1) Overtime requirements. No contractor or subcontractor contracting for any part of the contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensat ion at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 5 listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 withdrawal, or other credit. g. Severance pay. (1) Payments in addition to regular salaries and wages made to workers whose employment is being terminated are allowable to the extent that, in each case, they are required by(a) law, (b) employer-employee agreement, or (c) established written policy. (2) Severance payments (but not accruals) associated with normal turnover are allowable. Such payments shall be allocated to all activities of the governmental unit as an indirect cost. (3) Abnormal or mass severance pay will be considered on a case-by-case basis and is allowable only if approved by the cognizant Federal agency. h. Support of salaries and wages. These standards regarding time distribution are in addition to the standards for payroll documentation. (1) Charges to Federal awards for salaries and wages, whether treated as direct or indirect costs, will be based on payrolls documented in accordance with generally accepted practice of the governmental unit and approved by a responsible official(s) of the governmental unit. (2) No further documentation is required for the salaries and wages of employees who work in a single indirect cost activity. (3) Where employees are expected to work solely on a single Federal award or cost objective, charges for their salaries and wages will be supported by periodic certifications that the employees worked solely on that program for the period covered by the certification. These certifications will be prepared at least semi-annually and will be signed by the employee or supervisory official having first hand knowledge of the work performed by the employee. (4) Where employees work on multiple activities or cost objectives, a distribution of their salaries or wages will be supported by personnel activity reports or equivalent documentation which meets the standards in subsection (5) unless a statistical sampling system(see subsection (6)) or other substitute system has been approved by the cognizant Federal agency. Such documentary support will be required where employees work on: (a) More than one Federal award, (b) A Federal award and a non-Federal award, (c) An indirect cost activity and a direct cost activity, (d) Two or more indirect activities which are allocated using different allocation bases, or '0 of 53 4/16/03 I:39 i'M An insurer or other benefit provider as current year costs or premiums, or (b) An insurer or trustee to maintain a trust fund or reserve for the sole purpose of providing post-retirement benefits to retirees and other beneficiaries. (6) The Federal Government shall receive an equitable share of any amounts of previously allowed post-retirement benefit costs (including earnings thereon) which revert or inure to the governmental unit in the form of a refund, 19 of 53 4/16/03 1:39 PP funded by the governmental unit in excess of the actuarially determined amount for a fiscal year may be used as the governmental unit's contribution in future periods. 18 of 53 4/16/03 1:39 PM set of records needs to be maintained by the governmental unit. e. Conditional exemptions. 6 of53 4/16/03 1:39 PM standards applicable under this Contract to his employer. B Contract Work Hours and Safety Standards Act. As used in this paragraph, the terms "laborers" and "mechanics" include watchmen and guards. (1) Overtime requirements. No contractor or subcontractor contracting for any part of the contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensat ion at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 5 listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 (e)An unallowable activity and a direct or indirect cost activity. (5) Personnel activity reports or equivalent documentation must meet the following standards: (a) They must reflect an after-the-fact distribution of the actual activity of each employee, (b) They must account for the total activity for which each employee is compensated, (c) They must be prepared at least monthly and must coincide with one or more pay periods, and (d) They must be signed by the employee. (e)Budget estimates or other distribution percentages determined before the services are performed do not qualify as support for charges to Federal awards but may be used for interim accounting purposes, provided that: (i) The governmental unit's system for establishing the estimates produces reasonable approximations of the activity actually performed; (ii)At least quarterly, comparisons of actual costs to budgeted distributions based on the monthly activity reports are made. Costs charged to Federal awards to reflect adjustments made as a result of the activity actually performed may be recorded annually if the quarterly comparisons show the differences between budgeted and actual costs are less than ten percent; and (iii) The budget estimates or other distribution percentages are revised at least quarterly, if necessary, to reflect changed circumstances. (6) Substitute systems for allocating salaries and wages to Federal awards may be used in place of activity reports. These systems are subject to approval if required by the cognizant agency. Such systems may include, but are not limited to, random moment sampling, case counts, or other quantifiable measures of employee effort. (a) Substitute systems which use sampling methods (primarily for Aid to Families with Dependent Children (AFDC), Medicaid, and other public assistance programs) must meet acceptable statistical sampling standards including: (i) The sampling universe must include all of the employees whose salaries and wages are to be allocated based on sample results except as provided in subsection (c); (ii) The entire time period involved must be covered by the sample; and (iii) The results must be statistically valid and applied to the period being 21 of 53 4/16/03 1:39 PIS award, (c) An indirect cost activity and a direct cost activity, (d) Two or more indirect activities which are allocated using different allocation bases, or '0 of 53 4/16/03 I:39 i'M An insurer or other benefit provider as current year costs or premiums, or (b) An insurer or trustee to maintain a trust fund or reserve for the sole purpose of providing post-retirement benefits to retirees and other beneficiaries. (6) The Federal Government shall receive an equitable share of any amounts of previously allowed post-retirement benefit costs (including earnings thereon) which revert or inure to the governmental unit in the form of a refund, 19 of 53 4/16/03 1:39 PP funded by the governmental unit in excess of the actuarially determined amount for a fiscal year may be used as the governmental unit's contribution in future periods. 18 of 53 4/16/03 1:39 PM set of records needs to be maintained by the governmental unit. e. Conditional exemptions. 6 of53 4/16/03 1:39 PM standards applicable under this Contract to his employer. B Contract Work Hours and Safety Standards Act. As used in this paragraph, the terms "laborers" and "mechanics" include watchmen and guards. (1) Overtime requirements. No contractor or subcontractor contracting for any part of the contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensat ion at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 5 listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 • sampled. • (b) Allocating charges for the sampled employees' supervisors, clerical and support staffs, based on the results of the sampled employees, will be acceptable. (c) Less than full compliance with the statistical sampling standards noted in subsection (a) may be accepted by the cognizant agency if it concludes that the amounts to be allocated to Federal awards will be minimal, or if it concludes that the system proposed by the governmental unit will result in lower costs to Federal awards than a system which complies with the standards. (7) Salaries and wages of employees used in meeting cost sharing or matching requirements of Federal awards must be supported in the same manner as those claimed as allowable costs under Federal awards. i. Donated services. (1) Donated or volunteer services may be furnished to a governmental unit 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 provisions of 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 governmental unit's indirect costs or rate(s) and, accordingly, shall be allocated a proportionate share of applicable indirect costs. (3) To the extent feasible, donated services will be supported by the same methods used by the governmental unit to support the allocability of regular personnel services. 12. Contingencies. Contributions to a contingency reserve or any similar provision made for events the occurrence of which cannot be foretold with certainty as to time, or intensity, or with an assurance of their happening, are unallowable. The term "contingency reserve" excludes self-insurance reserves (see subsection 25.c.), pension plan reserves (see subsection 11.e.), and post-retirement health and other benefit reserves (see subsection 11.f.) computed using acceptable actuarial cost methods. 13. Contributions and donations. Contributions and donations, including cash, property, and services, by governmental units to others, regardless of the recipient, are unallowable. 14. Defense and prosecution of criminal and civil proceedings, and claims. a. The following costs are unallowable for contracts covered by 10 U.S.C. 2324(k), "Allowable costs under defense contracts." Z2 of 53 4/16/03 1:39 PM d other beneficiaries. (6) The Federal Government shall receive an equitable share of any amounts of previously allowed post-retirement benefit costs (including earnings thereon) which revert or inure to the governmental unit in the form of a refund, 19 of 53 4/16/03 1:39 PP funded by the governmental unit in excess of the actuarially determined amount for a fiscal year may be used as the governmental unit's contribution in future periods. 18 of 53 4/16/03 1:39 PM set of records needs to be maintained by the governmental unit. e. Conditional exemptions. 6 of53 4/16/03 1:39 PM standards applicable under this Contract to his employer. B Contract Work Hours and Safety Standards Act. As used in this paragraph, the terms "laborers" and "mechanics" include watchmen and guards. (1) Overtime requirements. No contractor or subcontractor contracting for any part of the contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensat ion at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 5 listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 — _ iiup.nwww.wnnenouse.goviomoicircuiarsiauoirpnnvausr-aii.ntr (1) Costs incurred in defense of any civil or criminal fraud proceeding or similar proceeding (including filing of false certification brought by the United States where the contractor is found liable or has pleaded nolo contendere to a charge of fraud or similar proceeding (including filing of a false certification). (2) Costs incurred by a contractor in connection with any criminal, civil or administrative proceedings commenced by the United States or a State to the extent provided in 10 U.S.C. 2324(k). b. Legal expenses required in the administration of Federal programs are allowable. Legal expenses for prosecution of claims against the Federal Government are unallowable. 15. Depreciation and use allowances. a. Depreciation and use allowances are means of allocating the cost of fixed assets to periods benefitting from asset use. Compensation for the use of fixed assets on hand may be made through depreciation or use allowances. 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.) except as provided in subsection g. Except for enterprise funds and internal service funds that are included as part of a State/local cost allocation plan, classes of assets shall be determined on the same basis used for the government-wide financial statements. b. The computation of depreciation or use allowances shall be based on the acquisition cost of the assets involved. Where actual cost records have not been maintained, a reasonable estimate of the original acquisition cost may be used. The value of an asset donated to the governmental unit by an unrelated third party shall be its fair market value at the time of donation. Governmental or quasi-governmental organizations located within the same State shall not be considered unrelated third parties for this purpose. c. The computation of depreciation or use allowances 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 governmental unit, or a related donor organization, in satisfaction of a matching requirement. d. Where the use allowance method is followed, the use allowance for buildings and improvements (including land improvements, such as paved parking areas, fences, and sidewalks) will be computed at an annual rate not exceeding two percent of acquisition costs. The use allowance for equipment will be computed at an annual rate not exceeding 6 2/3 percent of acquisition cost. When the use 23 of 53 4/16/03 1:39 P inure to the governmental unit in the form of a refund, 19 of 53 4/16/03 1:39 PP funded by the governmental unit in excess of the actuarially determined amount for a fiscal year may be used as the governmental unit's contribution in future periods. 18 of 53 4/16/03 1:39 PM set of records needs to be maintained by the governmental unit. e. Conditional exemptions. 6 of53 4/16/03 1:39 PM standards applicable under this Contract to his employer. B Contract Work Hours and Safety Standards Act. As used in this paragraph, the terms "laborers" and "mechanics" include watchmen and guards. (1) Overtime requirements. No contractor or subcontractor contracting for any part of the contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensat ion at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 5 listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 • 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 condition, 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 destruction of, or 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. e. Where the 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, historical usage patterns, technological developments, and the renewal and replacement policies of the governmental unit followed for the individual items or classes of assets involved. In the absence of clear evidence indicating that the expected consumption of the asset will be significantly greater in the early portions than in the later portions of its useful life, the straight line method of depreciation shall be used. Depreciation methods once used shall not be changed unless approved by the Federal cognizant or awarding agency. When the depreciation method is introduced for application to an asset previously subject to a use allowance, the annual depreciation charge thereon may not exceed the amount that would have resulted had the depreciation method been in effect from the date of acquisition of the asset. The combination of use allowances and depreciation applicable to the asset shall not exceed the total acquisition cost of the asset or fair market value at time of donation. f. When the depreciation method is used for buildings, a building's shell may be segregated from the major component of the building(e.g.,plumbing system, heating, and air conditioning system, etc.) and each major component 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. g. A reasonable use allowance may be negotiated for any assets that are considered to be fully depreciated, after taking into consideration the amount of depreciation previously charged to the government, the estimated useful life remaining at the time of negotiation, the effect of any increased maintenance charges, decreased efficiency due to age, and any other factors pertinent to the utilization of the asset for the purpose contemplated. h. Charges for use allowances or depreciation must be supported by adequate property records. Physical inventories must be taken at least once every two years (a statistical sampling approach is acceptable) to ensure that assets exist, and are in use. Governmental units will manage equipment in accordance with State laws 24 of 53 4/16/03 1:39 PN 1 No contractor or subcontractor contracting for any part of the contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensat ion at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 5 listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 , .. ..._._... . ..... .. ................. ..,.,.,,..,...5.,.,,,,,.,.,,,.,.,...r...._.,.,..r....__..,,. .......... and procedures. When the depreciation method is followed, depreciation records indicating the amount of depreciation taken each period must also be maintained. 16. Disbursing service. The cost of disbursing funds by the Treasurer or other designated officer is allowable. 17. Employee morale, health, and welfare costs. The costs of health or first-aid clinics and/or infirmaries, recreational facilities, employee counseling services, employee information publications, and any related expenses incurred in accordance with a governmental unit's policy are allowable. Income generated from any of these activities will be offset against expenses. 18. Entertainment. 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. 19. Equipment and other capital expenditures. a. As used in this section the following teiiiis have the meanings as set forth below: (1) "Capital expenditure" means the cost of the asset including the cost to put it in place. Capital expenditure for equipment 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, capital expenditure cost in accordance with the governmental unit'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 the lesser of(a) the capitalization level established by the governmental unit for financial statement purposes, or(b) $5000. (3) "Other capital assets" mean buildings, land, and improvements to buildings or land that materially increase their value or useful life. b. Capital expenditures which are not charged directly to a Federal award may be recovered through use allowances or depreciation on buildings, capital improvements, and equipment (see section 15). See also section 38 for allowability of rental costs for buildings and equipment. c. Capital expenditures for equipment, including replacement equipment, other capital assets, and improvements which materially increase the value or useful life of equipment or other capital assets are allowable as a direct cost when approved by the awarding agency. Federal awarding agencies are authorized at their option to waive or delegate this approval requirement. 25 of53 4/16/03 I:39 Pf reviously charged to the government, the estimated useful life remaining at the time of negotiation, the effect of any increased maintenance charges, decreased efficiency due to age, and any other factors pertinent to the utilization of the asset for the purpose contemplated. h. Charges for use allowances or depreciation must be supported by adequate property records. Physical inventories must be taken at least once every two years (a statistical sampling approach is acceptable) to ensure that assets exist, and are in use. Governmental units will manage equipment in accordance with State laws 24 of 53 4/16/03 1:39 PN 1 No contractor or subcontractor contracting for any part of the contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensat ion at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 5 listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 d. Items of equipment with an acquisition cost of less than $5000 are considered to be supplies and are allowable as direct costs of Federal awards without specific awarding agency approval. e. The unamortized portion of any equipment written off as a result of a change in capitalization levels may be recovered by (1) continuing to claim the otherwise allowable use allowances or depreciation charges on the equipment or by(2) amortizing the amount to be written off over a period of years negotiated with the cognizant agency. f. When replacing equipment purchased in whole or in part with Federal funds, the governmental unit may use the equipment to be replaced as a trade-in or sell the property and use the proceeds to offset the cost of the replacement property. 20. Fines and penalties. Fines, penalties, damages, and other settlements resulting from violations (or alleged violations) of, or failure of the governmental unit to comply with, Federal, State, local, or Indian tribal laws and regulations are unallowable except when incurred as a result of compliance with specific provisions of the Federal award or written instructions by the awarding agency authorizing in advance such payments. 21. Fund raising and investment management costs. a. Costs of organized fund raising, including financial campaigns, solicitation of gifts and bequests, and similar expenses incurred to raise capital or obtain contributions are unallowable, regardless of the purpose for which the funds will be used. b. Costs of investment counsel and staff and similar expenses incurred to enhance income from investments are unallowable. However, such costs associated with investments covering pension, self-insurance, or other funds which include Federal participation allowed by this Circular are allowable. c. Fund raising and investment activities shall be allocated an appropriate share of indirect costs under the conditions described in subsection C.3.b. of Attachment A. 22. Gains and losses on disposition of depreciable property and other capital assets and substantial relocation of Federal programs. a. (1) Gains and losses on the sale, retirement, or other disposition of depreciable property shall be included in the year in which they occur as credits or charges to the asset cost grouping(s) in which the property was included. The amount of the gain or loss to be included as a credit or charge to the appropriate asset 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: 26 of 53 4/16/03 1:39 PN s approval requirement. 25 of53 4/16/03 I:39 Pf reviously charged to the government, the estimated useful life remaining at the time of negotiation, the effect of any increased maintenance charges, decreased efficiency due to age, and any other factors pertinent to the utilization of the asset for the purpose contemplated. h. Charges for use allowances or depreciation must be supported by adequate property records. Physical inventories must be taken at least once every two years (a statistical sampling approach is acceptable) to ensure that assets exist, and are in use. Governmental units will manage equipment in accordance with State laws 24 of 53 4/16/03 1:39 PN 1 No contractor or subcontractor contracting for any part of the contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensat ion at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 5 listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 (a) The gain or loss is processed through a depreciation account and is reflected in the depreciation allowable under sections 15 and 19. (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 subsection 25.d. (d) Compensation for the use of the property was provided through use allowances in lieu of depreciation. b. Substantial relocation of Federal awards from a facility where the Federal Government participated in the financing to another facility prior to the expiration of the useful life of the financed facility requires Federal agency approval. The extent of the relocation, the amount of the Federal participation in the financing, and the depreciation charged to date may require negotiation of space charges for Federal awards. c. Gains or losses of any nature arising from the sale or exchange of property other than the property covered in subsection a., e.g., land or included in the fair market value used in any adjustment resulting from a relocation of Federal awards covered in subsection b. shall be excluded in computing Federal award costs. 23. General government expenses. a. The general costs of government are unallowable (except as provided in section 41). These include: (1) Salaries and expenses of the Office of the Governor of a State or the chief executive of a political subdivision or the chief executives of federally-recognized Indian tribal governments; (2) Salaries and other expenses of State legislatures, tribal councils, or similar local governmental bodies, such as county supervisors, city councils, school boards, etc., whether incurred for purposes of legislation or executive direction; (3) Cost of the judiciary branch of a government; (4) Cost of prosecutorial activities unless treated as a direct cost to a specific program when authorized by program regulations (however, this does not preclude the allowability of other legal activities of the Attorney General); and (5) Other general types of government services normally provided to the general public, such as fire and police, unless provided for as a direct cost in program regulations. 27 of 53 4/16/03 1:39 Pt operty was included. The amount of the gain or loss to be included as a credit or charge to the appropriate asset 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: 26 of 53 4/16/03 1:39 PN s approval requirement. 25 of53 4/16/03 I:39 Pf reviously charged to the government, the estimated useful life remaining at the time of negotiation, the effect of any increased maintenance charges, decreased efficiency due to age, and any other factors pertinent to the utilization of the asset for the purpose contemplated. h. Charges for use allowances or depreciation must be supported by adequate property records. Physical inventories must be taken at least once every two years (a statistical sampling approach is acceptable) to ensure that assets exist, and are in use. Governmental units will manage equipment in accordance with State laws 24 of 53 4/16/03 1:39 PN 1 No contractor or subcontractor contracting for any part of the contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensat ion at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 5 listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 b. For federally-recognized Indian tribal governments and Councils Of Governments (COGs), the portion of salaries and expenses directly attributable • to managing and operating Federal programs by the chief executive and his staff is allowable. 24. 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 governmental unit. (2) "Idle facilities" means completely unused facilities that are excess to the governmental unit'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, 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 subsection, costs of idle facilities are allowable for a reasonable period of time, ordinarily not to exceed one year, depending on the initiative taken to use, lease, or dispose of such facilities. c. The costs of idle capacity are normal costs of doing business and are a factor in the normal fluctuations of usage or indirect cost rates from period to period. Such costs are allowable, provided that the capacity is reasonably anticipated to be necessary or was originally reasonable and is not subject to reduction or elimination by use on other Federal awards, subletting, renting, or sale, in accordance with sound business, economic, or security practices. Widespread idle capacity throughout an entire facility or among a group of assets having substantially the same function may be considered idle facilities. 28 of 53 4/16/03 1:39 Pr 4/16/03 1:39 PN s approval requirement. 25 of53 4/16/03 I:39 Pf reviously charged to the government, the estimated useful life remaining at the time of negotiation, the effect of any increased maintenance charges, decreased efficiency due to age, and any other factors pertinent to the utilization of the asset for the purpose contemplated. h. Charges for use allowances or depreciation must be supported by adequate property records. Physical inventories must be taken at least once every two years (a statistical sampling approach is acceptable) to ensure that assets exist, and are in use. Governmental units will manage equipment in accordance with State laws 24 of 53 4/16/03 1:39 PN 1 No contractor or subcontractor contracting for any part of the contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensat ion at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 5 listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 25. Insurance and indemnification. a. Costs of insurance required or approved and maintained, pursuant to the Federal award, are allowable. b. Costs of other insurance in connection with the general conduct of activities are allowable subject to the following limitations: (1) Types and extent and cost of coverage are in accordance with the governmental unit's policy and sound business practice. (2) Costs of insurance or of contributions to any reserve covering the risk of loss of, or damage to, Federal Government property are unallowable except to the extent that the awarding agency has specifically required or approved such costs. c. Actual losses which could have been covered by permissible insurance (through a self-insurance program or otherwise) are unallowable, unless expressly provided for in the Federal award or as described below. However, the Federal Government will participate in actual losses of a self insurance fund that are in excess of reserves. Costs incurred because of losses not covered under nominal deductible insurance coverage provided in keeping with sound management practice, and minor losses not covered by insurance, such as spoilage, breakage, and disappearance of small hand tools, which occur in the ordinary course of operations, are allowable. d. Contributions to a reserve for certain self-insurance programs including workers compensation, unemployment compensation, and severance pay are allowable subject to the following provisions: (1) The type of coverage and the extent of coverage and the rates and premiums would have been allowed had insurance (including reinsurance)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 discounted present value of the liability. The rate used for discounting the liability must be determined by giving consideration to such factors as the governmental unit's settlement rate for those liabilities and its investment rate of return. (2) Earnings or investment income on reserves must be credited to those reserves. (3) Contributions to reserves must be based on sound actuarial principles using historical experience and reasonable assumptions. Reserve levels must be analyzed and updated at least bienniall'' for each major risk being insured and take into account any reinsurance, coinsurance, etc. Reserve levels related to employee-related coverages will normally be limited to the value of claims (a) submitted and adjudicated but not paid, (b) submitted but not adjudicated, and (c) incurred but not submitted. Reserve levels in excess of the amounts based on the above must be identified and justified in the cost allocation plan or indirect cost rate proposal. 29 of 53 4/16/03 1:39 F Pf reviously charged to the government, the estimated useful life remaining at the time of negotiation, the effect of any increased maintenance charges, decreased efficiency due to age, and any other factors pertinent to the utilization of the asset for the purpose contemplated. h. Charges for use allowances or depreciation must be supported by adequate property records. Physical inventories must be taken at least once every two years (a statistical sampling approach is acceptable) to ensure that assets exist, and are in use. Governmental units will manage equipment in accordance with State laws 24 of 53 4/16/03 1:39 PN 1 No contractor or subcontractor contracting for any part of the contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensat ion at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 5 listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 (4) Accounting records, actuarial studies, and cost allocations (or billings) must recognize any significant differences due to types of insured risk and losses generated by the various insured activities or agencies of the governmental unit. If individual departments or agencies of the governmental unit experience significantly different levels of claims for a particular risk, those differences are to be recognized by the use of separate allocations or other techniques resulting in an equitable allocation. (5) Whenever funds are transferred from a self-insurance reserve to other accounts (e.g., general fund), refunds shall be made to the Federal Government for its share of funds transferred, including earned or imputed interest from the date of transfer. e. Actual claims paid to or on behalf of employees or former employees for workers' compensation, unemployment compensation, severance pay, and similar employee benefits (e.g., subsection 11.f. for post retirement health benefits), are allowable in the year of payment provided(1) the governmental unit follows a consistent costing policy and (2) they are allocated as a general administrative expense to all activities of the governmental unit. f. Insurance refunds shall be credited against insurance costs in the year the refund is received. g. Indemnification includes securing the governmental unit against liabilities to third persons and other losses not compensated by insurance or otherwise. The Federal Government is obligated to indemnify the governmental unit only to the extent expressly provided for in the Federal award, except as provided in subsection d. h. Costs of commercial insurance that protects against the costs of the contractor for correction of the contractor's own defects in materials or workmanship are unallowable. 26. Interest. a. Costs incurred for interest on borrowed capital or the use of a governmental unit's own funds, however represented, are unallowable except as specifically provided in subsection b. or authorized by Federal legislation. b. Financing costs (including interest) paid or incurred on or after the effective date of this Circular associated with the otherwise allowable costs of building acquisition, construction, or fabrication, reconstruction or remodeling completed on or after October 1, 1980 is allowable, subject to the conditions in (1)-(4). Financing costs (including interest)paid or incurred on or after the effective date of this Circular associated with otherwise allowable costs of equipment is allowable, subject to the conditions in (1)-(4). 30 of 53 4/16/03 1:39 PM judicated but not paid, (b) submitted but not adjudicated, and (c) incurred but not submitted. Reserve levels in excess of the amounts based on the above must be identified and justified in the cost allocation plan or indirect cost rate proposal. 29 of 53 4/16/03 1:39 F Pf reviously charged to the government, the estimated useful life remaining at the time of negotiation, the effect of any increased maintenance charges, decreased efficiency due to age, and any other factors pertinent to the utilization of the asset for the purpose contemplated. h. Charges for use allowances or depreciation must be supported by adequate property records. Physical inventories must be taken at least once every two years (a statistical sampling approach is acceptable) to ensure that assets exist, and are in use. Governmental units will manage equipment in accordance with State laws 24 of 53 4/16/03 1:39 PN 1 No contractor or subcontractor contracting for any part of the contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensat ion at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 5 listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 (1) The financing is provided (from other than tax or user fee sources) by a bona fide third party external to the governmental unit; (2) The assets are used in support of Federal awards; (3) Earnings on debt service reserve funds or interest earned on borrowed funds pending payment of the construction or acquisition costs are used to offset the current period's cost or the capitalized interest, as appropriate. Earnings subject to being reported to the Federal Internal Revenue Service under arbitrage requirements are excludable. (4) Governmental units will negotiate the amount of allowable interest whenever cash payments (interest, depreciation, use allowances, and contributions) exceed the governmental unit's cash payments and other contributions attributable to that portion of real property used for Federal awards. 27. Lobbying. The cost of certain influencing activities associated with obtaining grants, contracts, cooperative agreements, or loans is an unallowable cost. Lobbying with respect to certain grants, contracts, cooperative agreements, and loans shall be governed by the common rule, "New Restrictions on Lobbying" published at 55 FR 6736 (February 26, 1990), including definitions, and the Office of Management and Budget "Government-wide Guidance for New Restrictions on Lobbying" and notices published at 54 FR 52306 (December 20, 1989), 55 FR 24540 (June 15, 1990), and 57 FR 1772 (January 15, 1992), respectively. 28. Maintenance, operations, and repairs. Unless prohibited by law, the cost of utilities, insurance, security,janitorial services, elevator service, upkeep of grounds, necessary maintenance, normal repairs and alterations, and the like are, allowable to the extent that they: (1)keep property(including Federal property, unless otherwise provided for) in an efficient operating condition, (2) do not add to the permanent value of property or appreciably prolong its intended life, and (3) are not otherwise included in rental or other charges for space. Costs which add to the permanent value of property or appreciably prolong its intended life shall be treated as capital expenditures (see sections 15 and 19). 29. Materials and supplies. The cost of materials and supplies is allowable. Purchases should be charged at their actual prices after deducting all cash discounts, trade discounts, rebates, and allowances received. Withdrawals from general stores or stockrooms should be charged at cost under any recognized method of pricing, consistently applied. Incoming transportation charges are a proper part of materials and supply costs. 30. Memberships, subscriptions, and professional activities. a. Costs of the governmental unit's memberships in business, technical, and professional organizations are allowable. b. Costs of the governmental unit's subscriptions to business, professional, and technical periodicals are allowable. 31 of 53 4/16/03 1:39 Pt d useful life remaining at the time of negotiation, the effect of any increased maintenance charges, decreased efficiency due to age, and any other factors pertinent to the utilization of the asset for the purpose contemplated. h. Charges for use allowances or depreciation must be supported by adequate property records. Physical inventories must be taken at least once every two years (a statistical sampling approach is acceptable) to ensure that assets exist, and are in use. Governmental units will manage equipment in accordance with State laws 24 of 53 4/16/03 1:39 PN 1 No contractor or subcontractor contracting for any part of the contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensat ion at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 5 listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 • c. Costs of meetings and conferences where the primary purpose is the • dissemination of technical infoiiiiation, including meals, transportation, rental of meeting facilities, and other incidental costs are allowable. d. Costs of membership in civic and community, social organizations are allowable as a direct cost with the approval of the Federal awarding agency. e. Costs of membership in organizations substantially engaged in lobbying are unallowable. 31. Motor pools. The costs of a service organization which provides automobiles to user governmental units at a mileage or fixed rate and/or provides vehicle maintenance, inspection, and repair services are allowable. 32. Pre-award 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. 33. Professional service costs. a. Cost of professional and consultant services rendered by persons or organizations that are members of a particular profession or possess a special skill, whether or not officers or employees of the governmental unit, are allowable, subject to section 14 when reasonable in relation to the services rendered and when not contingent upon recovery of the costs from the Federal Government. b. Retainer fees supported by evidence of bona fide services available or rendered are allowable. 34. Proposal costs. Costs of preparing proposals for potential Federal awards are allowable. Proposal costs should normally be treated as indirect costs and should be allocated to all activities of the governmental unit utilizing the cost allocation plan and indirect cost rate proposal. However, proposal costs may be charged directly to Federal awards with the prior approval of the Federal awarding agency. 35. Publication and printing costs. Publication costs, including the costs of printing(including the processes of composition, plate-making,press work, and binding, and the end products produced by such processes), distribution, promotion, mailing, and general handling are allowable. 36. Rearrangements and alterations. Costs incurred for ordinary and normal rearrangement and alteration of facilities are allowable. Special arrangements and alterations costs incurred specifically for a Federal award are allowable with the prior approval of the Federal awarding agency. 2of53 4/16/03 1:39 PN overnmental unit's memberships in business, technical, and professional organizations are allowable. b. Costs of the governmental unit's subscriptions to business, professional, and technical periodicals are allowable. 31 of 53 4/16/03 1:39 Pt d useful life remaining at the time of negotiation, the effect of any increased maintenance charges, decreased efficiency due to age, and any other factors pertinent to the utilization of the asset for the purpose contemplated. h. Charges for use allowances or depreciation must be supported by adequate property records. Physical inventories must be taken at least once every two years (a statistical sampling approach is acceptable) to ensure that assets exist, and are in use. Governmental units will manage equipment in accordance with State laws 24 of 53 4/16/03 1:39 PN 1 No contractor or subcontractor contracting for any part of the contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensat ion at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 5 listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 • 37. Reconversion costs. Costs incurred in the restoration or rehabilitation of the governmental unit'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. 38. Rental costs. a. Subject to the limitations described in subsections b. through d. of this section, 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. b. Rental costs under sale and leaseback arrangements are allowable only up to the amount that would be allowed had the governmental unit continued to own the property. c. Rental costs under less-than-arms-length leases are allowable only up to the amount that would be allowed had title to the property vested in the governmental unit. For this purpose, less-than-arms-length leases include, but are not limited to, those where: (1) One party to the lease is able to control or substantially influence the actions of the other; (2) Both parties are parts of the same governmental unit; or (3) The governmental unit creates an authority or similar entity to acquire and lease the facilities to the governmental unit and other parties. d. Rental costs under leases which are required to be treated as capital leases under GAAP are allowable only up to the amount that would be allowed had the governmental unit purchased the property on the date the lease agreement was executed. This amount would include expenses such as depreciation or use allowance, maintenance, and insurance. The provisions of Financial Accounting Standards Board Statement 13 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 section 26. 39. Taxes. a. Taxes that a governmental unit is legally required to pay are allowable, except for self-assessed taxes that disproportionately affect Federal programs or changes in tax policies that disproportionately affect Federal programs. This provision becomes effective for taxes paid during the governmental unit's first fiscal year that begins on or after January 1, 1998, and applies thereafter. b. Gasoline taxes, motor vehicle fees, and other taxes that are in effect user fees for benefits provided to the Federal Government are allowable. 33 of 53 4/16/03 1:39 P ency. 2of53 4/16/03 1:39 PN overnmental unit's memberships in business, technical, and professional organizations are allowable. b. Costs of the governmental unit's subscriptions to business, professional, and technical periodicals are allowable. 31 of 53 4/16/03 1:39 Pt d useful life remaining at the time of negotiation, the effect of any increased maintenance charges, decreased efficiency due to age, and any other factors pertinent to the utilization of the asset for the purpose contemplated. h. Charges for use allowances or depreciation must be supported by adequate property records. Physical inventories must be taken at least once every two years (a statistical sampling approach is acceptable) to ensure that assets exist, and are in use. Governmental units will manage equipment in accordance with State laws 24 of 53 4/16/03 1:39 PN 1 No contractor or subcontractor contracting for any part of the contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensat ion at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 5 listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 c. This provision does not restrict the authority of Federal agencies to identify taxes where Federal participation is inappropriate. Where the identification of the amount of unallowable taxes would require an inordinate amount of effort, the cognizant agency may accept a reasonable approximation thereof. 40. Training. The cost of training provided for employee development is allowable. 41. Travel costs. a. General. Travel costs are allowable for expenses for transportation, lodging, subsistence, and related items incurred by employees traveling on official business. 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 results in charges consistent with those normally allowed in like circumstances in non-federally-sponsored activities. Notwithstanding the provisions of section 23, travel costs of officials covered by that section, when specifically related to Federal awards, are allowable with the prior approval of a grantor agency. 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 governmental unit in its regular operations as a result of the governmental unit's policy. In the absence of a written governmental unit policy regarding travel costs, the rates and amounts established under subchapter I of Chapter 57 of Title 5, United States Code "Travel and Subsistence Expenses; Mileage Allowances," or by the Administrator of General Services, or the President (or his designee)pursuant to any provisions of such subchapter shall be used as guidance for travel under Federal awards (41 U.S.C. 420, "Travel Expenses of Government Contractors"). c. Commercial air travel. Airfare costs in excess of the customary standard (coach or equivalent) airfare, are unallowable except when such accommodations would: require circuitous routing, require travel during unreasonable hours, excessively prolong travel, greatly increase the duration of the flight, result in increased cost that would offset transportation savings, or offer accommodations not reasonably adequate for the medical needs of the traveler. Where a governmental unit can reasonably demonstrate to the awarding agency either the nonavailability of customary standard airfare or Federal Government contract airfare for individual trips or, on an overall basis, that it is the governmental unit's practice to make routine use of such airfare, specific determinations of nonavailability will generally not be questioned by the Federal Government, unless a pattern of avoidance is detected. However, in order for airfare costs in excess of the customary standard commercial airfare to be allowable, e.g., use of first-class airfare, the governmental unit must justify and document on a case-by-case basis the applicable condition(s) set forth above. d. Air travel by other than commercial carrier. Cost of travel by governmental 34 of 53 4/16/03 1:39 PM roperty records. Physical inventories must be taken at least once every two years (a statistical sampling approach is acceptable) to ensure that assets exist, and are in use. Governmental units will manage equipment in accordance with State laws 24 of 53 4/16/03 1:39 PN 1 No contractor or subcontractor contracting for any part of the contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensat ion at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 5 listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 unit-owned, -leased, or -chartered aircraft, as used in this section, includes the cost of lease, charter, operation (including personnel costs), maintenance, depreciation, interest, insurance, and other related costs. Costs of travel via governmental unit-owned, -leased, or-chartered aircraft are unallowable to the extent they exceed the cost of allowable commercial air travel, as provided for in subsection c. 42. Underrecovery of costs under Federal agreements. Any excess costs over the Federal contribution under one award agreement are unallowable under other award agreements. Top of Page ATTACHMENT C Circular No. A-87 STATE/LOCAL-WIDE CENTRAL SERVICE COST ALLOCATION PLANS TABLE OF CONTENTS A. General B. Definitions 1. Billed central services 2. Allocated central services 3. Agency or operating agency C. Scope of the Central Service Cost Allocation Plans D. Submission Requirements E. Documentation Requirements for Submitted Plans 1. General 2. Allocated central services 3. Billed services a. General b. Internal service funds c. Self-insurance funds T5 of 53 4/16/03 1:39 P1 oyees 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 governmental unit in its regular operations as a result of the governmental unit's policy. In the absence of a written governmental unit policy regarding travel costs, the rates and amounts established under subchapter I of Chapter 57 of Title 5, United States Code "Travel and Subsistence Expenses; Mileage Allowances," or by the Administrator of General Services, or the President (or his designee)pursuant to any provisions of such subchapter shall be used as guidance for travel under Federal awards (41 U.S.C. 420, "Travel Expenses of Government Contractors"). c. Commercial air travel. Airfare costs in excess of the customary standard (coach or equivalent) airfare, are unallowable except when such accommodations would: require circuitous routing, require travel during unreasonable hours, excessively prolong travel, greatly increase the duration of the flight, result in increased cost that would offset transportation savings, or offer accommodations not reasonably adequate for the medical needs of the traveler. Where a governmental unit can reasonably demonstrate to the awarding agency either the nonavailability of customary standard airfare or Federal Government contract airfare for individual trips or, on an overall basis, that it is the governmental unit's practice to make routine use of such airfare, specific determinations of nonavailability will generally not be questioned by the Federal Government, unless a pattern of avoidance is detected. However, in order for airfare costs in excess of the customary standard commercial airfare to be allowable, e.g., use of first-class airfare, the governmental unit must justify and document on a case-by-case basis the applicable condition(s) set forth above. d. Air travel by other than commercial carrier. Cost of travel by governmental 34 of 53 4/16/03 1:39 PM roperty records. Physical inventories must be taken at least once every two years (a statistical sampling approach is acceptable) to ensure that assets exist, and are in use. Governmental units will manage equipment in accordance with State laws 24 of 53 4/16/03 1:39 PN 1 No contractor or subcontractor contracting for any part of the contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensat ion at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 5 listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 d. Fringe benefits 4. Required certification F. Negotiation and Approval of Central Service Plans G. Other Policies 1. Billed central service activities 2. Working capital reserves 3. Carry-forward adjustments of allocated central service costs 4. Adjustments of billed central services 5. Records retention 6. Appeals 7. OMB assistance A. General. 1. Most governmental units provide certain services, such as motor pools, computer centers, purchasing, accounting, etc., to operating agencies on a centralized basis. Since federally-supported awards are performed within the individual operating agencies, there needs to be a process whereby these central service costs can be identified and assigned to benefitted activities on a reasonable and consistent basis. The central service cost allocation plan provides that process. All costs and other data used to distribute the costs included in the plan should be supported by formal accounting and other records that will support the propriety of the costs assigned to Federal awards. 2. Guidelines and illustrations of central service cost allocation plans are provided in a brochure published by the Department of Health and Human Services entitled "A Guide for State and Local Government Agencies: Cost Principles and Procedures for Establishing Cost Allocation Plans and Indirect Cost Rates for Grants and Contracts with the Federal Government." A copy of this brochure may be obtained from the Superintendent of Documents, U.S. Government Printing Office. B. Definitions. 1. "Billed central services" means central services that are billed to benefitted agencies and/or programs on an individual fee-for-service or similar basis. Typical examples of billed central services include computer services, 36 of 53 4/16/03 1:39 PN ns of such subchapter shall be used as guidance for travel under Federal awards (41 U.S.C. 420, "Travel Expenses of Government Contractors"). c. Commercial air travel. Airfare costs in excess of the customary standard (coach or equivalent) airfare, are unallowable except when such accommodations would: require circuitous routing, require travel during unreasonable hours, excessively prolong travel, greatly increase the duration of the flight, result in increased cost that would offset transportation savings, or offer accommodations not reasonably adequate for the medical needs of the traveler. Where a governmental unit can reasonably demonstrate to the awarding agency either the nonavailability of customary standard airfare or Federal Government contract airfare for individual trips or, on an overall basis, that it is the governmental unit's practice to make routine use of such airfare, specific determinations of nonavailability will generally not be questioned by the Federal Government, unless a pattern of avoidance is detected. However, in order for airfare costs in excess of the customary standard commercial airfare to be allowable, e.g., use of first-class airfare, the governmental unit must justify and document on a case-by-case basis the applicable condition(s) set forth above. d. Air travel by other than commercial carrier. Cost of travel by governmental 34 of 53 4/16/03 1:39 PM roperty records. Physical inventories must be taken at least once every two years (a statistical sampling approach is acceptable) to ensure that assets exist, and are in use. Governmental units will manage equipment in accordance with State laws 24 of 53 4/16/03 1:39 PN 1 No contractor or subcontractor contracting for any part of the contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensat ion at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 5 listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 transportation services, insurance, and fringe benefits. • 2. "Allocated central services" means central services that benefit operating agencies but are not billed to the agencies on a fee-for-service or similar basis. These costs are allocated to benefitted agencies on some reasonable basis. Examples of such services might include general accounting, personnel administration, purchasing, etc. 3. "Agency or operating agency" means an organizational unit or sub-division within a governmental unit that is responsible for the performance or administration of awards or activities of the governmental unit. C. Scope of the Central Service Cost Allocation Plans. The central service cost allocation plan will include all central service costs that will be claimed (either as a billed or an allocated cost) under Federal awards and will be documented as described in section E. Costs of central services omitted from the plan will not be reimbursed. D. Submission Requirements. 1. Each State will submit a plan to the Department of Health and Human Services for each year in which it claims central service costs under Federal awards. The plan should include(a) a projection of the next year's allocated central service cost (based either on actual costs for the most recently completed year or the budget projection for the coming year), and (b) a reconciliation of actual allocated central service costs to the estimated costs used for either the most recently completed year or the year immediately preceding the most recently completed year. 2. Each local government that has been designated as a "major local government" by the Office of Management and Budget(OMB) is also required to submit a plan to its cognizant agency annually. OMB periodically lists major local governments in the Federal Register. 3. All other local governments claiming central service costs must develop a plan in accordance with the requirements described in this Circular and maintain the plan and related supporting documentation for audit. These local governments are not required to submit their plans for Federal approval unless they are specifically requested to do so by the cognizant agency. Where a local government only receives funds as a sub-recipient, the primary recipient will be responsible for negotiating indirect cost rates and/or monitoring the sub-recipient's plan. 4. All central service cost allocation plans will be prepared and, when required, submitted within six months prior to the beginning of each of the governmental unit's fiscal years in which it proposes to claim central service costs. Extensions may be granted by the cognizant agency on a case-by-case basis. E. Documentation Requirements for Submitted Plans. The documentation .77 of 53 4/16/03 1:39 PI nt, unless a pattern of avoidance is detected. However, in order for airfare costs in excess of the customary standard commercial airfare to be allowable, e.g., use of first-class airfare, the governmental unit must justify and document on a case-by-case basis the applicable condition(s) set forth above. d. Air travel by other than commercial carrier. Cost of travel by governmental 34 of 53 4/16/03 1:39 PM roperty records. Physical inventories must be taken at least once every two years (a statistical sampling approach is acceptable) to ensure that assets exist, and are in use. Governmental units will manage equipment in accordance with State laws 24 of 53 4/16/03 1:39 PN 1 No contractor or subcontractor contracting for any part of the contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensat ion at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 5 listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 • requirements described in this section may be modified, expanded, or reduced by the cognizant agency on a case-by-case basis. For example, the requirements may • be reduced for those central services which have little or no impact on Federal awards. Conversely, if a review of a plan indicates that certain additional information is needed, and will likely be needed in future years, it may be routinely requested in future plan submissions. Items marked with an asterisk (*) should be submitted only once; subsequent plans should merely indicate any changes since the last plan. 1. General. All proposed plans must be accompanied by the following: an organization chart sufficiently detailed to show operations including the central service activities of the State/local government whether or not they are shown as benefiting from central service functions; a copy of the Comprehensive Annual Financial Report (or a copy of the Executive Budget if budgeted costs are being proposed) to support the allowable costs of each central service activity included in the plan; and, a certification (see subsection 4.) that the plan was prepared in accordance with this Circular, contains only allowable costs, and was prepared in a manner that treated similar costs consistently among the various Federal awards and between Federal and non-Federal awards/activities. 2. Allocated central services. For each allocated central service, the plan must also include the following: a brief description of the service*, an identification of the unit rendering the service and the operating agencies receiving the service, the items of expense included in the cost of the service, the method used to distribute the cost of the service to benefitted agencies, and a summary schedule showing the allocation of each service to the specific benefitted agencies. If any self-insurance funds or fringe benefits costs are treated as allocated(rather than billed) central services, documentation discussed in subsections 3.b. and c. shall also be included. 3. Billed services. a. General. The information described below shall be provided for all billed central services, including internal service funds, self-insurance funds, and fringe benefit funds. b. Internal service funds. (1) For each internal service fund or similar activity with an operating budget of $5 million or more, the plan shall include: a brief description of each service; a balance sheet for each fund based on individual accounts contained in the governmental unit's accounting system; a revenue/expenses statement, with revenues broken out by source, e.g., regular billings, interest earned, etc.; a listing of all non-operating transfers (as defined by Generally Accepted Accounting Principles (GAAP)) into and out of the fund; a description of the procedures (methodology) used to charge the costs of each service to users, including how billing rates are determined; a schedule of current rates; and,a schedule comparing total revenues (including imputed revenues) generated by the service to the allowable costs of the service, as determined under this 38 of 53 4/16/03 1:39 PM by other than commercial carrier. Cost of travel by governmental 34 of 53 4/16/03 1:39 PM roperty records. Physical inventories must be taken at least once every two years (a statistical sampling approach is acceptable) to ensure that assets exist, and are in use. Governmental units will manage equipment in accordance with State laws 24 of 53 4/16/03 1:39 PN 1 No contractor or subcontractor contracting for any part of the contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensat ion at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 5 listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 Circular, with an explanation of how variances will be handled. (2) Revenues shall consist of all revenues generated by the service, including unbilled and uncollected revenues. If some users were not billed for the services (or were not billed at the full rate for that class of users), a schedule showing the full imputed revenues associated with these users shall be provided. Expenses shall be broken out by object cost categories (e.g., salaries, supplies, etc.). c. Self-insurance funds. For each self-insurance fund, the plan shall include: the fund balance sheet; a statement of revenue and expenses including a summary of billings and claims paid by agency; a listing of all non-operating transfers into and out of the fund; the type(s) of risk(s) covered by the fund (e.g., automobile liability, workers' compensation, etc.); an explanation of how the level of fund contributions are determined, including a copy of the current actuarial report (with the actuarial assumptions used) if the contributions are determined on an actuarial basis; and, a description of the procedures used to charge or allocate fund contributions to benefitted activities. Reserve levels in excess of claims (1) submitted and adjudicated but not paid, (2) submitted but not adjudicated, and (3) incurred but not submitted must be identified and explained. d. Fringe benefits. For fringe benefit costs, the plan shall include: a listing of fringe benefits provided to covered employees, and the overall annual cost of each type of benefit; current fringe benefit policies*; and procedures used to charge or allocate the costs of the benefits to benefitted activities. In addition, for pension and post-retirement health insurance plans, the following information shall be provided: the governmental unit's funding policies, e.g., legislative bills, trust agreements, or State-mandated contribution rules, if different from actuarially determined rates; the pension plan's costs accrued for the year; the amount funded, and date(s) of funding; a copy of the current actuarial report (including the actuarial assumptions); the plan trustee's report; and, a schedule from the activity showing the value of the interest cost associated with late funding. 4. Required certification. Each central service cost allocation plan will be accompanied by a certification in the following form: CERTIFICATE OF COST ALLOCATION PLAN This is to certify that I have reviewed the cost allocation plan submitted herewith and to the best of my knowledge and belief: (1) All costs included in this proposal [identify date] to establish cost allocations or billings for [identify period covered by plan] are allowable in accordance with the requirements of OMB Circular A-87, "Cost Principles for State, Local, and Indian Tribal Governments," and the Federal award(s) to which they apply. Unallowable costs have been adjusted for in allocating costs as indicated in the cost allocation plan. (2) All costs included in this proposal are properly allocable to Federal awards on the basis of a beneficial or causal relationship between the expenses incurred and 39 of53 4/16/03 1:39 P 34 of 53 4/16/03 1:39 PM roperty records. Physical inventories must be taken at least once every two years (a statistical sampling approach is acceptable) to ensure that assets exist, and are in use. Governmental units will manage equipment in accordance with State laws 24 of 53 4/16/03 1:39 PN 1 No contractor or subcontractor contracting for any part of the contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensat ion at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 5 listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 the awards to which they are allocated in accordance with applicable . requirements. Further, the same costs that have been treated as indirect costs • have not been claimed as direct costs. Similar types of costs have been accounted for consistently. I declare that the foregoing is true and correct. Governmental Unit: Signature: Name of Official: Title: Date of Execution: F. Negotiation and Approval of Central Service Plans. 1. All proposed central service cost allocation plans that are required to be submitted will be reviewed, negotiated, and approved by the Federal cognizant agency on a timely basis. The cognizant agency will review the proposal within six months of receipt of the proposal and either negotiate/approve the proposal or advise the governmental unit of the additional documentation needed to support/evaluate the proposed plan or the changes required to make the proposal acceptable. Once an agreement with the governmental unit has been reached, the agreement will be accepted and used by all Federal agencies, unless prohibited or limited by statute. Where a Federal funding agency has reason to believe that special operating factors affecting its awards necessitate special consideration, the funding agency will, prior to the time the plans are negotiated, notify the cognizant agency. 2. The results of each negotiation shall be formalized in a written agreement between the cognizant agency and the governmental unit. This agreement will be subject to re-opening if the agreement is subsequently found to violate a statute or the information upon which the plan was negotiated is later found to be materially incomplete or inaccurate. The results of the negotiation shall be made available to all Federal agencies for their use. 3. Negotiated cost allocation plans based on a proposal later found to have included costs that: (a) are unallowable (i) as specified by law or regulation, (ii) as identified in Attachment B of this Circular, or(iii) by the terms and conditions of Federal awards, or(b) are unallowable because they are clearly not allocable to Federal awards, shall be adjusted, or a refund shall be made at the option of the Federal cognizant agency. These adjustments or refunds are designed to correct the plans and do not constitute a reopening of the negotiation. G. Other Policies. 1. Billed central service activities. Each billed central service activity must 40 of 53 4/16/03 1:39 PM ings for [identify period covered by plan] are allowable in accordance with the requirements of OMB Circular A-87, "Cost Principles for State, Local, and Indian Tribal Governments," and the Federal award(s) to which they apply. Unallowable costs have been adjusted for in allocating costs as indicated in the cost allocation plan. (2) All costs included in this proposal are properly allocable to Federal awards on the basis of a beneficial or causal relationship between the expenses incurred and 39 of53 4/16/03 1:39 P 34 of 53 4/16/03 1:39 PM roperty records. Physical inventories must be taken at least once every two years (a statistical sampling approach is acceptable) to ensure that assets exist, and are in use. Governmental units will manage equipment in accordance with State laws 24 of 53 4/16/03 1:39 PN 1 No contractor or subcontractor contracting for any part of the contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensat ion at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 5 listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 separately account for all revenues (including imputed revenues) generated by the service, expenses incurred to furnish the service, and profit/loss. 2. Working capital reserves. Internal service funds are dependent upon a reasonable level of working capital reserve to operate from one billing cycle to the next. Charges by an internal service activity to provide for the establishment and maintenance of a reasonable level of working capital reserve, in addition to the full recovery of costs, are allowable. A working capital reserve as part of retained earnings of up to 60 days cash expenses for normal operating purposes is considered reasonable. A working capital reserve exceeding 60 days may be approved by the cognizant Federal agency in exceptional cases. 3. Carry-forward adjustments of allocated central service costs. Allocated central service costs are usually negotiated and approved for a future fiscal year on a "fixed with carry-forward" basis. Under this procedure, the fixed amounts for the future year covered by agreement are not subject to adjustment for that year. However, when the actual costs of the year involved become known, the differences between the fixed amounts previously approved and the actual costs will be carried forward and used as an adjustment to the fixed amounts established for a later year. This "carry-forward" procedure applies to all central services whose costs were fixed in the approved plan. However, a carry-forward adjustment is not permitted, for a central service activity that was not included in the approved plan, or for unallowable costs that must be reimbursed immediately. 4. Adjustments of billed central services. Billing rates used to charge Federal awards shall be based on the estimated costs of providing the services, including an estimate of the allocable central service costs. A comparison of the revenue generated by each billed service (including total revenues whether or not billed or collected) to the actual allowable costs of the service will be made at least annually, and an adjustment will be made for the difference between the revenue and the allowable costs. These adjustments will be made through one of the following adjustment methods: (a) a cash refund to the Federal Government for the Federal share of the adjustment, (b) credits to the amounts charged to the individual programs, (c) adjustments to future billing rates, or (d) adjustments to allocated central service costs. Adjustments to allocated central services will not be permitted where the total amount of the adjustment for a particular service (Federal share and non-Federal) share exceeds $500,000. 5. Records retention. All central service cost allocation plans and related documentation used as a basis for claiming costs under Federal awards must be retained for audit in accordance with the records retention requirements contained in the Common Rule. 6. Appeals. If a dispute arises in the negotiation of a plan between the cognizant agency and the governmental unit, the dispute shall be resolved in accordance with the appeals procedures of the cognizant agency. 7. OMB assistance. To the extent that problems are encountered among the Federal agencies and/or governmental units in connection with the negotiation 41 of53 4/16/03 1:39 P1` two years (a statistical sampling approach is acceptable) to ensure that assets exist, and are in use. Governmental units will manage equipment in accordance with State laws 24 of 53 4/16/03 1:39 PN 1 No contractor or subcontractor contracting for any part of the contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensat ion at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 5 listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 and approval process, OMB will lend assistance, as required, to resolve such . problems in a timely manner. • Top of Page ATTACHMENT D Circular No. A-87 PUBLIC ASSISTANCE COST ALLOCATION PLANS TABLE OF CONTENTS • A. General B. Definitions 1. State public assistance agency 2. State public assistance agency costs • C. Policy D. Submission, Documentation, and Approval of Public Assistance Cost Allocation Plans E. Review of Implementation of Approved Plans F. Unallowable Costs A. General. Federally-financed programs administered by State public assistance agencies are funded predominately by the Department of Health and Human Services (HHS). In support of its stewardship requirements, HHS has published requirements for the development, documentation, submission, negotiation, and approval of public assistance cost allocation plans in Subpart E of 45 CFR Part 95. All administrative costs (direct and indirect) are normally charged to Federal awards by implementing the public assistance cost allocation plan. This Attachment extends these requirements to all Federal agencies whose programs are administered by a State public assistance agency. Major federally-financed programs typically administered by State public assistance agencies include: Aid to Families with Dependent Children, Medicaid, Food Stamps, Child Support Enforcement, Adoption Assistance and Foster Care, and Social Services Block Grant. B. Definitions. 1. "State public assistance agency" means a State agency administering or supervising the administration of one or more public assistance programs operated by the State as identified in Subpart E of 45 CFR Part 95. For the purpose of this Attachment, these programs include all programs administered by -:2 of 53 4/16/03 1:39 PM lled service (including total revenues whether or not billed or collected) to the actual allowable costs of the service will be made at least annually, and an adjustment will be made for the difference between the revenue and the allowable costs. These adjustments will be made through one of the following adjustment methods: (a) a cash refund to the Federal Government for the Federal share of the adjustment, (b) credits to the amounts charged to the individual programs, (c) adjustments to future billing rates, or (d) adjustments to allocated central service costs. Adjustments to allocated central services will not be permitted where the total amount of the adjustment for a particular service (Federal share and non-Federal) share exceeds $500,000. 5. Records retention. All central service cost allocation plans and related documentation used as a basis for claiming costs under Federal awards must be retained for audit in accordance with the records retention requirements contained in the Common Rule. 6. Appeals. If a dispute arises in the negotiation of a plan between the cognizant agency and the governmental unit, the dispute shall be resolved in accordance with the appeals procedures of the cognizant agency. 7. OMB assistance. To the extent that problems are encountered among the Federal agencies and/or governmental units in connection with the negotiation 41 of53 4/16/03 1:39 P1` two years (a statistical sampling approach is acceptable) to ensure that assets exist, and are in use. Governmental units will manage equipment in accordance with State laws 24 of 53 4/16/03 1:39 PN 1 No contractor or subcontractor contracting for any part of the contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensat ion at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 5 listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 the State public assistance agency. 2. "State public assistance agency costs" means all costs incurred by, or allocable to, the State public assistance agency, except expenditures for financial assistance, medical vendor payments, food stamps, and payments for services and goods provided directly to program recipients. C. Policy. State public assistance agencies will develop, document and . implement, and the Federal Government will review, negotiate, and approve, public assistance cost allocation plans in accordance with Subpart E of 45 CFR Part 95. The plan will include all programs administered by the State public assistance agency. Where a letter of approval or disapproval is transmitted to a State public assistance agency in accordance with Subpart E, the letter will apply to all Federal agencies and programs. The remaining sections of this Attachment (except for the requirement for certification) summarize the provisions of Subpart E of 45 CFR Part 95. D. Submission, Documentation, and Approval of Public Assistance Cost Allocation Plans. 1. State public assistance agencies are required to promptly submit amendments to the cost allocation plan to HHS for review and approval. 2. Under the coordination process outlined in subsection E, affected Federal agencies will review all new plans and plan amendments and provide comments, as appropriate, to HHS. The effective date of the plan or plan amendment will be the first day of the quarter following the submission of the plan or amendment, unless another date is specifically approved by HHS. HHS, as the cognizant agency acting on behalf of all affected Federal agencies, will, as necessary, conduct negotiations with the State public assistance agency and will inform the State agency of the action taken on the plan or plan amendment. E. Review of Implementation of Approved Plans. 1. Since public assistance cost allocation plans are of a narrative nature, the review during the plan approval process consists of evaluating the appropriateness of the proposed groupings of costs (cost centers) and the related allocation bases. As such, the Federal Government needs some assurance that the cost allocation plan has been implemented as approved. This is accomplished by reviews by the funding agencies, single audits, or audits conducted by the cognizant audit agency. 2. Where inappropriate charges affecting more than one funding agency are identified, the cognizant HHS cost negotiation office will be advised and will take the lead in resolving the issue(s) as provided for in Subpart E of 45 CFR Part 95. 3. If a dispute arises in the negotiation of a plan or from a disallowance involving 43 of53 4/16/03 1:39 P Federal awards must be retained for audit in accordance with the records retention requirements contained in the Common Rule. 6. Appeals. If a dispute arises in the negotiation of a plan between the cognizant agency and the governmental unit, the dispute shall be resolved in accordance with the appeals procedures of the cognizant agency. 7. OMB assistance. To the extent that problems are encountered among the Federal agencies and/or governmental units in connection with the negotiation 41 of53 4/16/03 1:39 P1` two years (a statistical sampling approach is acceptable) to ensure that assets exist, and are in use. Governmental units will manage equipment in accordance with State laws 24 of 53 4/16/03 1:39 PN 1 No contractor or subcontractor contracting for any part of the contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensat ion at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 5 listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 • two or more funding agencies, the dispute shall be resolved in accordance with the appeals procedures set out in 45 CFR Part 75. Disputes involving only one funding agency will be resolved in accordance with the funding agency's appeal process. 4. To the extent that problems are encountered among the Federal agencies and/or governmental units in connection with the negotiation and approval process, the Office of Management and Budget will lend assistance, as required, to resolve such problems in a timely manner. F. Unallowable Costs. Claims developed under approved cost allocation plans will be based on allowable costs as identified in this Circular. Where unallowable costs have been claimed and reimbursed, they will be refunded to the program that reimbursed the unallowable cost using one of the following methods: (a) a cash refund, (b) offset to a subsequent claim, or(c) credits to the amounts charged to individual awards. Top of Page ATTACHMENT E Circular No. A-87 STATE AND LOCAL INDIRECT COST RATE PROPOSALS TABLE OF CONTENTS A. General B. Definitions 1. Indirect cost rate proposal 2. Indirect cost rate 3. Indirect cost pool 4. Base 5. Predetermined rate 6. Fixed rate 7. Provisional rate 8. Final rate 9. Base period 44 of 53 4/16/03 1:39 PI` e comments, as appropriate, to HHS. The effective date of the plan or plan amendment will be the first day of the quarter following the submission of the plan or amendment, unless another date is specifically approved by HHS. HHS, as the cognizant agency acting on behalf of all affected Federal agencies, will, as necessary, conduct negotiations with the State public assistance agency and will inform the State agency of the action taken on the plan or plan amendment. E. Review of Implementation of Approved Plans. 1. Since public assistance cost allocation plans are of a narrative nature, the review during the plan approval process consists of evaluating the appropriateness of the proposed groupings of costs (cost centers) and the related allocation bases. As such, the Federal Government needs some assurance that the cost allocation plan has been implemented as approved. This is accomplished by reviews by the funding agencies, single audits, or audits conducted by the cognizant audit agency. 2. Where inappropriate charges affecting more than one funding agency are identified, the cognizant HHS cost negotiation office will be advised and will take the lead in resolving the issue(s) as provided for in Subpart E of 45 CFR Part 95. 3. If a dispute arises in the negotiation of a plan or from a disallowance involving 43 of53 4/16/03 1:39 P Federal awards must be retained for audit in accordance with the records retention requirements contained in the Common Rule. 6. Appeals. If a dispute arises in the negotiation of a plan between the cognizant agency and the governmental unit, the dispute shall be resolved in accordance with the appeals procedures of the cognizant agency. 7. OMB assistance. To the extent that problems are encountered among the Federal agencies and/or governmental units in connection with the negotiation 41 of53 4/16/03 1:39 P1` two years (a statistical sampling approach is acceptable) to ensure that assets exist, and are in use. Governmental units will manage equipment in accordance with State laws 24 of 53 4/16/03 1:39 PN 1 No contractor or subcontractor contracting for any part of the contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensat ion at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 5 listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 C. Allocation of Indirect Costs and Determination of Indirect Cost.Rates 1. General 2. Simplified method 3. Multiple allocation base method 4. Special indirect cost rates D. Submission and Documentation of Proposals 1. Submission of indirect cost rate proposals 2. Documentation of proposals 3. Required certification E:Negotiation and Approval of Rates F. Other Policies 1. Fringe benefit rates • 2. Billed services provided by the grantee agency 3. Indirect cost allocations not using rates 4. Appeals 5. Collections of unallowable costs and erroneous payments 6. OMB assistance A. General. 1. Indirect costs are those that have been incurred for common or joint purposes. These costs benefit more than one cost objective and cannot be readily identified with a particular final cost objective without effort disproportionate to the results achieved. After direct costs have been determined and assigned directly to Federal awards and other activities as appropriate, indirect costs are those remaining to be allocated to benefitted cost objectives. A cost may not be allocated to a Federal award as an indirect cost if any other cost incurred for the same purpose, in like circumstances, has been assigned to a Federal award as a direct cost. 2. Indirect costs include (a) the indirect costs originating in each department or agency of the governmental unit carrying out Federal awards and (b) the costs of 45 of 53 4/16/03 1:39 PI, lowing the submission of the plan or amendment, unless another date is specifically approved by HHS. HHS, as the cognizant agency acting on behalf of all affected Federal agencies, will, as necessary, conduct negotiations with the State public assistance agency and will inform the State agency of the action taken on the plan or plan amendment. E. Review of Implementation of Approved Plans. 1. Since public assistance cost allocation plans are of a narrative nature, the review during the plan approval process consists of evaluating the appropriateness of the proposed groupings of costs (cost centers) and the related allocation bases. As such, the Federal Government needs some assurance that the cost allocation plan has been implemented as approved. This is accomplished by reviews by the funding agencies, single audits, or audits conducted by the cognizant audit agency. 2. Where inappropriate charges affecting more than one funding agency are identified, the cognizant HHS cost negotiation office will be advised and will take the lead in resolving the issue(s) as provided for in Subpart E of 45 CFR Part 95. 3. If a dispute arises in the negotiation of a plan or from a disallowance involving 43 of53 4/16/03 1:39 P Federal awards must be retained for audit in accordance with the records retention requirements contained in the Common Rule. 6. Appeals. If a dispute arises in the negotiation of a plan between the cognizant agency and the governmental unit, the dispute shall be resolved in accordance with the appeals procedures of the cognizant agency. 7. OMB assistance. To the extent that problems are encountered among the Federal agencies and/or governmental units in connection with the negotiation 41 of53 4/16/03 1:39 P1` two years (a statistical sampling approach is acceptable) to ensure that assets exist, and are in use. Governmental units will manage equipment in accordance with State laws 24 of 53 4/16/03 1:39 PN 1 No contractor or subcontractor contracting for any part of the contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensat ion at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 5 listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 central governmental services distributed through the central service cost allocation plan (as described in Attachment C) and not otherwise treated as direct • costs. 3. Indirect costs are normally charged to Federal awards by the use of an indirect cost rate. A separate indirect cost rate(s) is usually necessary for each department or agency of the governmental unit claiming indirect costs under Federal awards. Guidelines and illustrations of indirect cost proposals are provided in a brochure published by the Department of Health and Human Services entitled "A Guide for State and Local Government Agencies: Cost Principles and Procedures for Establishing Cost Allocation Plans and Indirect Cost Rates for Grants and Contracts with the Federal Government." A copy of this brochure may be obtained from the Superintendent of Documents, U.S. Government Printing Office. 4. Because of the diverse characteristics and accounting practices of governmental units, the types of costs which may be classified as indirect costs cannot be specified in all situations. However, typical examples of indirect costs may include certain State/local-wide central service costs, general administration of the grantee department or agency, accounting and personnel services performed within the grantee department or agency, depreciation or use allowances on buildings and equipment, the costs of operating and maintaining facilities, etc. 5. This Attachment does not apply to State public assistance agencies. These agencies should refer instead to Attachment D. B. Definitions. 1. "Indirect cost rate proposal" means the documentation prepared by a governmental unit or subdivision thereof to substantiate its request for the establishment of an indirect cost rate. 2. "Indirect cost rate" is a device for determining in a reasonable manner the proportion of indirect costs each program should bear. It is the ratio (expressed as a percentage) of the indirect costs to a direct cost base. 3. "Indirect cost pool" is the accumulated costs that jointly benefit two or more programs or other cost objectives. 4. "Base" means the accumulated direct costs (normally either total direct salaries and wages or total direct costs exclusive of any extraordinary or distorting expenditures) used to distribute indirect costs to individual Federal awards. The direct cost base selected should result in each award bearing a fair share of the indirect costs in reasonable relation to the benefits received from the costs. 5. "Predetermined rate" means an indirect cost rate, applicable to a specified current or future period, usually the governmental unit's fiscal year. This rate is based on an estimate of the costs to be incurred during the period. Except under very unusual circumstances, a predetermined rate is not subject to adjustment. "6 of 53 4/16/03 1:39 PM ppeals procedures of the cognizant agency. 7. OMB assistance. To the extent that problems are encountered among the Federal agencies and/or governmental units in connection with the negotiation 41 of53 4/16/03 1:39 P1` two years (a statistical sampling approach is acceptable) to ensure that assets exist, and are in use. Governmental units will manage equipment in accordance with State laws 24 of 53 4/16/03 1:39 PN 1 No contractor or subcontractor contracting for any part of the contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensat ion at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 5 listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 (Because of legal constraints, predetetiiiined rates are not peiiuitted for Federal contracts; they may, however, be used for grants or cooperative agreements.) Predetermined rates may not be used by governmental units that have not submitted and negotiated the rate with the cognizant agency. In view of the potential advantages offered by this procedure, negotiation of predetermined rates for indirect costs for a period of two to four years should be the norm in those situations where the cost experience and other pertinent facts available are deemed sufficient to enable the parties involved to reach an informed judgment as to the probable level of indirect costs during the ensuing accounting periods. 6. "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, allowable costs of the period covered by the rate is carried forward as an adjustment to the rate computation of a subsequent period. 7. "Provisional rate" means a temporary indirect cost rate applicable to a specified period which is used for funding, interim reimbursement, and reporting indirect costs on Federal awards pending the establishment of a "final" rate for that period. 8. "Final rate" means an indirect cost rate applicable to a specified past period which is based on the actual allowable costs of the period. A final audited rate is not subject to adjustment. 9. "Base period" for the allocation of indirect costs is the period in which such costs are incurred and accumulated for allocation to activities performed in that period. The base period normally should coincide with the governmental unit's fiscal year,but in any event, shall be so selected as to avoid inequities in the allocation of costs. C. Allocation of Indirect Costs and Determination of Indirect Cost Rates. 1. General. a. Where a governmental unit's department or agency has only one major function, or where all its major functions benefit from the 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 subsection 2. b. Where a governmental unit's department or agency has several major functions which benefit from its indirect costs in varying degrees, the allocation of indirect costs may require the accumulation of such costs into separate cost groupings which then are allocated individually to benefitted 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. Specific methods for allocating indirect costs and computing indirect cost rates along with the conditions under which each method should be used are described 47of53 4/16/03 1:39 PI` ate is not subject to adjustment. "6 of 53 4/16/03 1:39 PM ppeals procedures of the cognizant agency. 7. OMB assistance. To the extent that problems are encountered among the Federal agencies and/or governmental units in connection with the negotiation 41 of53 4/16/03 1:39 P1` two years (a statistical sampling approach is acceptable) to ensure that assets exist, and are in use. Governmental units will manage equipment in accordance with State laws 24 of 53 4/16/03 1:39 PN 1 No contractor or subcontractor contracting for any part of the contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensat ion at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 5 listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 in subsections 2, 3 and 4. 2. Simplified method. a. Where a grantee agency's major functions benefit from its indirect costs to approximately the same degree, the allocation of indirect costs may be accomplished by (1) classifying the grantee agency's total costs for the base period as either direct or indirect, and (2) 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 Federal 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 a governmental unit's department or agency has only one major function encompassing a number of individual projects or activities, and may be used where the level of Federal awards to that department or agency is relatively small. b. Both the direct costs and the indirect costs shall exclude capital expenditures and unallowable costs. However, unallowable costs must be included in the direct costs if they represent activities to which indirect costs are properly allocable. c. The distribution base maybe (1) total direct costs (excluding capital expenditures and other distorting items, such as pass-through funds, major subcontracts, etc.), (2) direct salaries and wages, or(3) another base which results in an equitable distribution. 3. Multiple allocation base method. a. Where a grantee agency's indirect costs benefit its major functions in varying degrees, such costs shall be accumulated into separate cost groupings. Each grouping shall then be allocated individually to benefitted functions by means of a base which best measures the relative benefits. b. The cost groupings should be established so as to permit the allocation of each grouping on the basis of benefits provided to the major functions. Each grouping should constitute a pool of expenses that are of like character in terms of the functions they benefit and in terms of the allocation base which best measures the relative benefits provided to each function. The number of separate groupings should be held within practical limits, taking into consideration the materiality of the amounts involved and the degree of precision needed. c. Actual conditions must be taken into account in selecting the base to be used in allocating the expenses in each grouping to benefitted functions. When an allocation can be made by assignment of a cost grouping directly to the function benefitted, the allocation shall be made in that manner. When the expenses in a grouping are more general in nature, the allocation should be made through the use of a selected base which produces results that are equitable to both the Federal Government and the governmental unit. In general, any cost element or related factor associated with the governmental unit's activities is potentially 48 of 53 4/16/03 1:39 PM untered among the Federal agencies and/or governmental units in connection with the negotiation 41 of53 4/16/03 1:39 P1` two years (a statistical sampling approach is acceptable) to ensure that assets exist, and are in use. Governmental units will manage equipment in accordance with State laws 24 of 53 4/16/03 1:39 PN 1 No contractor or subcontractor contracting for any part of the contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensat ion at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 5 listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 adaptable for use as an allocation base provided that: (1) it can readily be expressed in terms of dollars or other quantitative measures (total direct costs, direct salaries and wages, staff hours applied, square feet used, hours of usage, number of documents processed, population served, and the like), and (2) it is common to the benefitted functions during the base period. d. Except where a special indirect cost rate(s) is required in accordance with subsection 4, 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 Federal awards included in that function by use of a single indirect cost rate. e. The distribution base used in computing the indirect cost rate for each function may be (1) total direct costs (excluding capital expenditures and other distorting items such as pass-through funds, major subcontracts, etc.), (2) direct salaries and wages, or (3) another base which results in an equitable distribution. An indirect cost rate should be developed for each separate indirect cost pool developed. The rate in each case should be stated as the percentage relationship between the particular indirect cost pool and the distribution base identified with that pool. 4. Special indirect cost rates. a. In some instances, a single indirect cost rate for all activities of a grantee department or agency or for each major function of the agency may not be appropriate. It may not take into account those different factors which may substantially affect the indirect costs applicable to a particular program or group of programs. The 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 organizational arrangements used, or any combination thereof. When a particular award is carried out 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 that award. 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 that: (1) the rate differs significantly from the rate which would have been developed under subsections 2. and 3., and (2) the award to which the rate would apply is material in amount. b. Although this Circular adopts the concept of the full allocation of indirect costs, there are some Federal statutes which restrict the reimbursement of certain indirect costs. Where such restrictions exist, it may be necessary to develop a special rate for the affected award. Where a "restricted rate" is required, the procedure for developing a non-restricted rate will be used except for the additional step of the elimination from the indirect cost pool those costs for which the law prohibits reimbursement. D. Submission and Documentation of Proposals. 1. Submission of indirect cost rate proposals. u9 of 53 4/16/03 1:39 P encies and/or governmental units in connection with the negotiation 41 of53 4/16/03 1:39 P1` two years (a statistical sampling approach is acceptable) to ensure that assets exist, and are in use. Governmental units will manage equipment in accordance with State laws 24 of 53 4/16/03 1:39 PN 1 No contractor or subcontractor contracting for any part of the contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensat ion at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 5 listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 a. All departments or agencies of the governmental unit desiring to claim indirect • costs under Federal awards must prepare an indirect cost rate proposal and related documentation to support those costs. The proposal and related documentation must be retained for audit in accordance with the records retention requirements contained in the Common Rule. b. A governmental unit for which a cognizantagency assignment has been � specifically designated must submit its indirect cost rate proposal to its cognizant agency. The Office of Management and Budget (OMB) will periodically publish lists of governmental units identifying the appropriate Federal cognizant agencies. The cognizant agency for all governmental units or agencies not identified by OMB will be determined based on the Federal agency providing the largest amount of Federal funds. In these cases, a governmental unit must develop an indirect cost proposal in accordance with the requirements of this Circular and maintain the proposal and related supporting documentation for audit. These governmental units are not required to submit their proposals unless they are specifically requested to do so by the cognizant agency. Where a local government only receives funds as a sub-recipient, the primary recipient will be responsible for negotiating and/or monitoring the sub-recipient's plan. c. Each Indian tribal government desiring reimbursement of indirect costs must submit its indirect cost proposal to the Department of the Interior (its cognizant Federal agency). d. Indirect cost proposals must be developed (and, when required, submitted) within six months after the close of the governmental unit's fiscal year, unless an exception is approved by the cognizant Federal agency. If the proposed central service cost allocation plan for the same period has not been approved by that time, the indirect cost proposal may be prepared including an amount for central services that is based on the latest federally-approved central service cost allocation plan. The difference between these central service amounts and the amounts ultimately approved will be compensated for by an adjustment in a subsequent period. 2. Documentation of proposals. The following shall be included with each indirect cost proposal: a. The rates proposed, including subsidiary work sheets and other relevant data, cross referenced and reconciled to the financial data noted in subsection b. Allocated central service costs will be supported by the summary table included in the approved central service cost allocation plan. This summary table is not required to be submitted with the indirect cost proposal if the central service cost allocation plan for the same fiscal year has been approved by the cognizant agency and is available to the funding agency. b. A copy of the financial data (financial statements, comprehensive annual financial report, executive budgets, accounting reports, etc.) upon which the rate is based. Adjustments resulting from the use of unaudited data will be recognized, where appropriate, by the Federal cognizant agency in a subsequent 30 of 53 4/16/03 1:39 PM at assets exist, and are in use. Governmental units will manage equipment in accordance with State laws 24 of 53 4/16/03 1:39 PN 1 No contractor or subcontractor contracting for any part of the contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensat ion at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 5 listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 proposal. c. The approximate amount of direct base costs incurred under Federal awards. These costs should be broken out between salaries and wages and other direct costs. d. A chart showing the organizational structure of the agency during the period for which the proposal applies, along with a functional statement(s) noting the duties and/or responsibilities of all units that comprise the agency. (Once this is submitted, only revisions need be submitted with subsequent proposals.) 3. Required certification. Each indirect cost rate proposal shall be accompanied by a certification in the following form: CERTIFICATE OF INDIRECT COSTS This is to certify that I have reviewed the indirect cost rate proposal submitted herewith and to the best of my knowledge and belief: (1) All costs included in this proposal [identify date] to establish billing or final indirect costs rates for [identify period covered by rate] are allowable in accordance with the requirements of the Federal award(s) to which they apply and OMB Circular A-87, "Cost Principles for State, Local, and Indian Tribal Governments." Unallowable costs have been adjusted for in allocating costs as indicated in the cost allocation plan. (2) All costs included in this proposal are properly allocable to Federal awards on the basis of a beneficial or causal relationship between the expenses incurred and the agreements to which they are allocated in accordance with applicable requirements. Further, the same costs that have been treated as indirect costs have not been claimed as direct costs. Similar types of costs have been accounted for consistently and the Federal Government will be notified of any accounting changes that would affect the predetermined rate. I declare that the foregoing is true and correct. Governmental Unit: Signature: Name of Official: Title: Date of Execution: i r. 53 4/16/03 1:39 P1 service cost allocation plan for the same period has not been approved by that time, the indirect cost proposal may be prepared including an amount for central services that is based on the latest federally-approved central service cost allocation plan. The difference between these central service amounts and the amounts ultimately approved will be compensated for by an adjustment in a subsequent period. 2. Documentation of proposals. The following shall be included with each indirect cost proposal: a. The rates proposed, including subsidiary work sheets and other relevant data, cross referenced and reconciled to the financial data noted in subsection b. Allocated central service costs will be supported by the summary table included in the approved central service cost allocation plan. This summary table is not required to be submitted with the indirect cost proposal if the central service cost allocation plan for the same fiscal year has been approved by the cognizant agency and is available to the funding agency. b. A copy of the financial data (financial statements, comprehensive annual financial report, executive budgets, accounting reports, etc.) upon which the rate is based. Adjustments resulting from the use of unaudited data will be recognized, where appropriate, by the Federal cognizant agency in a subsequent 30 of 53 4/16/03 1:39 PM at assets exist, and are in use. Governmental units will manage equipment in accordance with State laws 24 of 53 4/16/03 1:39 PN 1 No contractor or subcontractor contracting for any part of the contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensat ion at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 5 listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 E. Negotiation and Approval of Rates. 1. Indirect cost rates will be reviewed, negotiated, and approved by the cognizant Federal agency on a timely basis. Once a rate has been agreed upon, it will be accepted and used by all Federal agencies unless prohibited or limited by statute. Where a Federal funding agency has reason to believe that special operating factors affecting its awards necessitate special indirect cost rates, the funding agency will,prior to the time the rates are negotiated, notify the cognizant Federal agency. 2. The use of predetermined rates, if allowed, is encouraged where the cognizant agency has reasonable assurance based on past experience and reliable projection of the grantee agency's costs, that the rate is not likely to exceed a rate based on actual costs. Long-term agreements utilizing predetermined rates extending over two or more years are encouraged, where appropriate. 3. The results of each negotiation shall be formalized in a written agreement between the cognizant agency and the governmental unit. This agreement will be subject to re-opening if the agreement is subsequently found to violate a statute, or the information upon which the plan was negotiated is later found to be materially incomplete or inaccurate. The agreed upon rates shall be made available to all Federal agencies for their use. 4. Refunds shall be made if proposals are later found to have included costs that (a) are unallowable (i) as specified by law or regulation, (ii) as identified in Attachment B of this Circular, or(iii)by the terms and conditions of Federal awards, or (b) are unallowable because they are clearly not allocable to Federal awards. These adjustments or refunds will be made regardless of the type of rate negotiated (predetermined, final, fixed, or provisional). F. Other Policies. 1. Fringe benefit rates. If overall fringe benefit rates are not approved for the governmental unit as part of the central service cost allocation plan, these rates will be reviewed, negotiated and approved for individual grantee agencies during the indirect cost negotiation process. In these cases, a proposed fringe benefit rate computation should accompany the indirect cost proposal. If fringe benefit rates are not used at the grantee agency level (i.e., the agency specifically identifies fringe benefit costs to individual employees), the governmental unit should so advise the cognizant agency. 2. Billed services provided by the grantee agency. In some cases, governmental units provide and bill for services similar to those covered by central service cost allocation plans (e.g., computer centers). Where this occurs, the governmental unit should be guided by the requirements in Attachment C relating to the development of billing rates and documentation requirements, and should advise the cognizant agency of any billed services. Reviews of these types of services (including reviews of costing/billing methodology, profits or losses, etc.) will be made on a case-by-case basis as warranted by the circumstances involved. 52 of 53 4/16/03 1:39 PM l be recognized, where appropriate, by the Federal cognizant agency in a subsequent 30 of 53 4/16/03 1:39 PM at assets exist, and are in use. Governmental units will manage equipment in accordance with State laws 24 of 53 4/16/03 1:39 PN 1 No contractor or subcontractor contracting for any part of the contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensat ion at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 5 listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 3. Indirect cost allocations not using rates. In certain situations, a governmental unit, because of the nature of its awards, may be required to develop a cost allocation plan that distributes indirect (and, in some cases, direct) costs to the specific funding sources. In these cases, a narrative cost allocation methodology should be developed, documented, maintained for audit, or submitted, as appropriate, to the cognizant agency for review, negotiation, and approval. 4. Appeals. If a dispute arises in a negotiation of an indirect cost rate (or other rate) between the cognizant agency and the governmental unit, the dispute shall be resolved in accordance with the appeals procedures of the cognizant agency. 5. Collection of unallowable costs and erroneous payments. Costs specifically identified as unallowable and charged to Federal awards either directly or indirectly will be refunded (including interest chargeable in accordance with applicable Federal agency regulations). 6. OMB assistance. To the extent that problems are encountered among the Federal agencies and/or governmental units in connection with the negotiation and approval process, OMB will lend assistance, as required, to resolve such problems in a timely manner. Return to this article at: http://www.whitehouse.gov/omb/circulars/a087/a087-all.html Click to Print this document l }= 53 of 53 4/16/03 1:39 P 4. Refunds shall be made if proposals are later found to have included costs that (a) are unallowable (i) as specified by law or regulation, (ii) as identified in Attachment B of this Circular, or(iii)by the terms and conditions of Federal awards, or (b) are unallowable because they are clearly not allocable to Federal awards. These adjustments or refunds will be made regardless of the type of rate negotiated (predetermined, final, fixed, or provisional). F. Other Policies. 1. Fringe benefit rates. If overall fringe benefit rates are not approved for the governmental unit as part of the central service cost allocation plan, these rates will be reviewed, negotiated and approved for individual grantee agencies during the indirect cost negotiation process. In these cases, a proposed fringe benefit rate computation should accompany the indirect cost proposal. If fringe benefit rates are not used at the grantee agency level (i.e., the agency specifically identifies fringe benefit costs to individual employees), the governmental unit should so advise the cognizant agency. 2. Billed services provided by the grantee agency. In some cases, governmental units provide and bill for services similar to those covered by central service cost allocation plans (e.g., computer centers). Where this occurs, the governmental unit should be guided by the requirements in Attachment C relating to the development of billing rates and documentation requirements, and should advise the cognizant agency of any billed services. Reviews of these types of services (including reviews of costing/billing methodology, profits or losses, etc.) will be made on a case-by-case basis as warranted by the circumstances involved. 52 of 53 4/16/03 1:39 PM l be recognized, where appropriate, by the Federal cognizant agency in a subsequent 30 of 53 4/16/03 1:39 PM at assets exist, and are in use. Governmental units will manage equipment in accordance with State laws 24 of 53 4/16/03 1:39 PN 1 No contractor or subcontractor contracting for any part of the contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensat ion at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 5 listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 .i. 'rCuldl IVO. Pi-1.,- -- f.uU1L3 V1 JLaL'. , ._.--_.. ---- - .-" --- " ,![;;1.*4 Click to Print .._ �: this document u ,t Office of Management and Budget yelp ii.},' Circular No. A-133 EXHIBIT 0 Revised to show changes published in the pq,s, / -3$ Federal Register June 27, 2003 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. 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 littp://www.whitehouse.gov/omb/circulars/a133/print/a133.html 4/12/05 izant agency of any billed services. Reviews of these types of services (including reviews of costing/billing methodology, profits or losses, etc.) will be made on a case-by-case basis as warranted by the circumstances involved. 52 of 53 4/16/03 1:39 PM l be recognized, where appropriate, by the Federal cognizant agency in a subsequent 30 of 53 4/16/03 1:39 PM at assets exist, and are in use. Governmental units will manage equipment in accordance with State laws 24 of 53 4/16/03 1:39 PN 1 No contractor or subcontractor contracting for any part of the contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensat ion at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 5 listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 Circular No. A-133 -- Audits or states, Local uovernmenis, anu ivuu-riurn aiuL.auouuo 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. 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. /S/ Augustine T. Smythe • Acting Director Attachment PART --AUDITS OF STATES, LOCAL GOVERNMENTS, AND NON- PROFIT ORGANIZATIONS Subpart A--General Sec. .100 Purpose. _.105 Definitions. Subpart B-_Audits hap://www.whitehouse.gov/onthicirculars/a133/print/a133.html 4/12/05 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 littp://www.whitehouse.gov/omb/circulars/a133/print/a133.html 4/12/05 izant agency of any billed services. Reviews of these types of services (including reviews of costing/billing methodology, profits or losses, etc.) will be made on a case-by-case basis as warranted by the circumstances involved. 52 of 53 4/16/03 1:39 PM l be recognized, where appropriate, by the Federal cognizant agency in a subsequent 30 of 53 4/16/03 1:39 PM at assets exist, and are in use. Governmental units will manage equipment in accordance with State laws 24 of 53 4/16/03 1:39 PN 1 No contractor or subcontractor contracting for any part of the contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensat ion at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 5 listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 • Circular No. A-133 --Audits of States, Local Governments, and Non-Profit Organizations rage of .i) • • .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. • • Sub.partC 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-SACI. • Appendix 5 to Part - Circular A-133 Compliance Supplement. • Table of Contents 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 http://wwvv.whitehouse.gov/omb/circulars/a133/print/a 133.html 4/12/OS agency for audit, which is effective July 28, 2003. /S/ Augustine T. Smythe • Acting Director Attachment PART --AUDITS OF STATES, LOCAL GOVERNMENTS, AND NON- PROFIT ORGANIZATIONS Subpart A--General Sec. .100 Purpose. _.105 Definitions. Subpart B-_Audits hap://www.whitehouse.gov/onthicirculars/a133/print/a133.html 4/12/05 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 littp://www.whitehouse.gov/omb/circulars/a133/print/a133.html 4/12/05 izant agency of any billed services. Reviews of these types of services (including reviews of costing/billing methodology, profits or losses, etc.) will be made on a case-by-case basis as warranted by the circumstances involved. 52 of 53 4/16/03 1:39 PM l be recognized, where appropriate, by the Federal cognizant agency in a subsequent 30 of 53 4/16/03 1:39 PM at assets exist, and are in use. Governmental units will manage equipment in accordance with State laws 24 of 53 4/16/03 1:39 PN 1 No contractor or subcontractor contracting for any part of the contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensat ion at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 5 listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 Ltrc war INu. ri-i» -- riUuii.6 ul ,�u�.� L� .. .,,..u.. ... �.... . . .. (a) to report in the schedule of findings and questioned costs. CFDA number means the number assigned to a Federal program in the • Catalog of Federal Domestic Assistance (CFDA). Cluster of programs means a grouping of closely related programs that share common compliance requirements. The types of clusters of programs are research and development (R&D), student financial aid (SFA), and other clusters. "Other clusters" are as defined by the Office of Management and Budget (OMB) in the compliance supplement or as designated by a State for Federal awards the State provides to its subrecipients that meet the definition of a cluster of programs. When designating an "other cluster," a State shall identify the Federal awards included in the cluster and advise the subrecipients of compliance requirements applicable to the cluster, consistent with § .400(d)(1) and § .400(d)(2), respectively. A cluster of programs shall be considered as one program for determining major programs, as described in § .520, and, with the exception of R&D as described in § .2O0(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 § .40O(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 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 http://www,.whitehouse.gov/omb/circulars/a133/print/a133.html 4/12/05 4/16/03 1:39 PM l be recognized, where appropriate, by the Federal cognizant agency in a subsequent 30 of 53 4/16/03 1:39 PM at assets exist, and are in use. Governmental units will manage equipment in accordance with State laws 24 of 53 4/16/03 1:39 PN 1 No contractor or subcontractor contracting for any part of the contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensat ion at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 5 listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 Circular No. A-133 -- Audits of States, Local Governments, and Non-Profit urganizauons rage or 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). nation, or other organizedgroup Indian tribe means any Y Indian tribe, band, 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 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: http://www.whitehouse.gov/ombicircularsia13.3/print/a133.html 4/1 2/05 o 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 http://www,.whitehouse.gov/omb/circulars/a133/print/a133.html 4/12/05 4/16/03 1:39 PM l be recognized, where appropriate, by the Federal cognizant agency in a subsequent 30 of 53 4/16/03 1:39 PM at assets exist, and are in use. Governmental units will manage equipment in accordance with State laws 24 of 53 4/16/03 1:39 PN 1 No contractor or subcontractor contracting for any part of the contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensat ion at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 5 listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 Lircuiar iso. 11uuit VL JLQLGJ, LVl ai vv v tail,. ,.v.. • b .: —o' - - . (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 http://www.whitehouse.gov/omb/circulars/a133/print/a133.html L1/12/05 operly recorded and accounted for to: http://www.whitehouse.gov/ombicircularsia13.3/print/a133.html 4/1 2/05 o 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 http://www,.whitehouse.gov/omb/circulars/a133/print/a133.html 4/12/05 4/16/03 1:39 PM l be recognized, where appropriate, by the Federal cognizant agency in a subsequent 30 of 53 4/16/03 1:39 PM at assets exist, and are in use. Governmental units will manage equipment in accordance with State laws 24 of 53 4/16/03 1:39 PN 1 No contractor or subcontractor contracting for any part of the contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensat ion at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 5 listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 -Circular No. A-133 -- Audits of States, Local lrovernments, ana ivon-rroui rab. higher education and hospitals. 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 • http://www.;whitehouse.gov/omb/circulars/a133/print/a 133.html 4/12/05 ding donated surplus property), cooperative agreements, interest subsidies, insurance, food commodities, direct appropriations, and other http://www,.whitehouse.gov/omb/circulars/a133/print/a133.html 4/12/05 4/16/03 1:39 PM l be recognized, where appropriate, by the Federal cognizant agency in a subsequent 30 of 53 4/16/03 1:39 PM at assets exist, and are in use. Governmental units will manage equipment in accordance with State laws 24 of 53 4/16/03 1:39 PN 1 No contractor or subcontractor contracting for any part of the contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensat ion at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 5 listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 • Circular No. A-1 Auulls ui Diaic6, - -_-- _- _._:..._. 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 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. Table.of Contents 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 http://www.whitehouse.gov/omb/ciroulars/a133/print/a133.html 4/12/05 nt/a133.html 4/12/05 4/16/03 1:39 PM l be recognized, where appropriate, by the Federal cognizant agency in a subsequent 30 of 53 4/16/03 1:39 PM at assets exist, and are in use. Governmental units will manage equipment in accordance with State laws 24 of 53 4/16/03 1:39 PN 1 No contractor or subcontractor contracting for any part of the contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensat ion at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 5 listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 Circular No. A-133 -- Audits of States, Local governments, anu nun-rruui uiga1llL.allu agk, 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 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. http://www.whitehouse.gov/omb/circulars/al33/print/a133.html 4/12/05 :39 PN 1 No contractor or subcontractor contracting for any part of the contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensat ion at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 5 listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 • Lircular 1N0. A-1» -- Huuiis U1 Jtaies, LVVa1 VVv uuu i.v.. . . ..• b .:- -.... - • (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 of an award to carry out a Federal program shall be included in determining Federal awards expended and subject to audit under this part. (g) Valuing non-cash assistance. Federal non-cash assistance, such as free rent, food stamps, food commodities, donated property, or donated surplus property, shall be valued at fair market value at the time of receipt or the assessed value provided by the Federal agency. (h) Medicare. Medicare payments to a non-Federal entity for providing • patient care services to Medicare eligible individuals are not considered Federal awards expended under this part. (i) Medicaid. Medicaid payments to a subrecipient for providing patient care services to Medicaid eligible individuals are not considered Federal awards expended under this part unless a State requires the funds to be treated as • Federal awards expended because reimbursement is on a cost- reimbursement basis. • (j) Certain loans provided by the National Credit Union Administration. For purposes of this part, loans made from the National Credit Union Share Insurance Fund and the Central Liquidity Facility that are funded by contributions from insured institutions are not considered Federal awards expended. § .210 Subrecipient and vendor determinations. • (a) General. An auditee may be a recipient, a subrecipient, and a vendor. Federal awards expended as a recipient or a subrecipient would be subject to • audit under this part. The payments received for goods or services provided • as a vendor would not be considered Federal awards. The guidance in • paragraphs (b) and (c) of this section should be considered in determining whether payments constitute a Federal award or a payment for goods and services. (b) Federal award. Characteristics indicative of a Federal award received by a subrecipient are when the organization: (1) Determines who is eligible to receive what Federal financial assistance; (2) Has its performance measured against whether the objectives of the Federal program are met; (3) Has responsibility for programmatic decision making; hitp://www.whitehouse.gov/omb/circulars/a133/print/a133.html 4/12/05 e 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. http://www.whitehouse.gov/omb/circulars/al33/print/a133.html 4/12/05 :39 PN 1 No contractor or subcontractor contracting for any part of the contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensat ion at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 5 listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 'Circular No. A-133 -- Audits of States, Local governments, ana ivon-rruiii baii,Z.aL+... t a5`' i i �• JJ • (4) Has responsibility for adherence to applicable Federal program compliance, requirements; and (5) Uses the Federal funds to carry for ut a program program of the pass-through compared to providing goods orservices 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; (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 isliance r or transactions which responsible edible for at the vendor is espoonsiblef or program compliance oe rthe • structured such that 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 • http://www.whitehouse.gov/omb/circulars/a133/print/a133.html 4/12/05 vious years is not included as Federal awards expended because the lender accounts for the prior balances. http://www.whitehouse.gov/omb/circulars/al33/print/a133.html 4/12/05 :39 PN 1 No contractor or subcontractor contracting for any part of the contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensat ion at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 5 listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 Circular No. A-1u.5 -- Atkins of states, Local uovernrrienis, ariu iNuii-rrulit ragc i� vi �.� . 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. (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; http://www:whitehouse.gov/omb/circulars/a133/print/a133.html 4/12/05 lender accounts for the prior balances. http://www.whitehouse.gov/omb/circulars/al33/print/a133.html 4/12/05 :39 PN 1 No contractor or subcontractor contracting for any part of the contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensat ion at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 5 listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 Circular No. A-133 -- Audits of States, Local (.governments, ana lNon-rront rugs 1J U1 (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. (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 § (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 a corrective,b and findings consistent with the requirements of § .315( ) �. action plan consistent with the requirements of § .315(c). • http://www.whitehouse.goviomb/circulars/a133/print/a133.11tml 4/12/05 5 :39 PN 1 No contractor or subcontractor contracting for any part of the contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensat ion at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 5 listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 Circular No. A-13:3 -- Audits o1 Mates, Local IJOVertunems, Guu iNuii-ri via vta&uc.ciu... ra6c i-r vi (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 (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 .505 d consistent with ( ) to the Federal program in a format § (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- http://ww-wswhitehouse.gov/omb/circulars/a133/print/a133.1itml 4/1?/OS itures 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 a corrective,b and findings consistent with the requirements of § .315( ) �. action plan consistent with the requirements of § .315(c). • http://www.whitehouse.goviomb/circulars/a133/print/a133.11tml 4/12/05 5 :39 PN 1 No contractor or subcontractor contracting for any part of the contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensat ion at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 5 listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 Circular No. A-133 -- Audits of States, Local Governments, and Non-trout o gamzau... rage i J of _5) • specific audit guide. (However, for fiscal years beginning on or before June 30, 1998, the audit shall be completed and the required reporting shall be submitted within the earlier of 30 days after receipt of the auditor's report(s), or 13 months after the end of the audit period, unless a different period is specified in a program-specific audit guide.) Unless restricted by law or regulation, the auditee shall make report copies available for public inspection. (2) When a program-specific audit guide is available, the auditee shall submit to the Federal clearinghouse designated by OMB the data collection form prepared in accordance with § .320(b), as applicable to a program- specific audit, and the reporting required by the program-specific audit guide to be retained as an archival copy. Also, the auditee shall submit to the Federal awarding agency or pass-through entity the reporting required by the program-specific audit guide. (3) When a program-specific audit guide is not available, the reporting package for a program-specific audit shall consist of the financial statement (s) of the Federal program, a summary schedule of prior audit findings, and a corrective action plan as described in paragraph (b)(2) of this section, and the auditor's report(s) described in paragraph (b)(4) of this section. The data collection form prepared in accordance with § .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. • • • Table of Contents. • 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, http://www.whitehouse.goviomb/circulars/a133/print/a l 33.html 4/12/05 act work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensat ion at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 5 listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 Circular No. A-133 -- Audits of States, Local uovemmetus, ariu ivuu rit�,.l� vi�a ,i�dl,... i • (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. (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. • http://www.whitehouse.gov/omb/circulars/a133/print/a133.html 4/12/05 mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensat ion at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 5 listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 Circular No. A-133 -- Audits or states,Local Loverlullcuas, auu i'u i-i ivui v rJ..... ..... .g - -_ • § .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. (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). Iittp://www.whitehouse.gov/omb/circulars/a133/print/a133.html 4/12/05 e 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. • http://www.whitehouse.gov/omb/circulars/a133/print/a133.html 4/12/05 mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensat ion at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 5 listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 Circular No. A-1_3_3 -- Auaits oI states, Local l.Tuvetiuiicui�, aiiu ivuu-i ub.., .,, 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 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 persori(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 littp://www.whitehouse.gov/omb/circulars/a133/print/al33.html 4/12/05 .html 4/12/05 e 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. • http://www.whitehouse.gov/omb/circulars/a133/print/a133.html 4/12/05 mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensat ion at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 5 listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 -Circular No. A-133 -- Audits of States, Local overnments, anti Non-Yront urganizatl... rage i y or » after receipt of the auditor's report(s), or 13 months after the end of the audit period.) Unless restricted by law or regulation, the auditee shall make copies available for public inspection. (b) Data Collection. (1) The auditee shall submit a data collection form which states whether the audit was completed in accordance with this part and provides information about the auditee, its Federal programs, and the results of the audit. The form shall be approved by OMB, available from the Federal clearinghouse designated by OMB, and include data elements similar • to those presented in this paragraph. A senior level representative of the auditee (e.g., State controller, director of finance, chief executive officer, or chief financial officer) shall sign a statement to be included as part of the form certifying that: the auditee complied with the requirements of this part, the form was prepared in accordance with this part (and the instructions accompanying the form), and the information included in the form, in its entirety, are accurate and complete. (2) The data collection form shall include the following data elements: (i) The type of report the auditor issued on the financial statements of the auditee (i.e., unqualified opinion, qualified opinion, adverse opinion, or disclaimer of opinion). (ii) Where applicable, a statement that reportable conditions in internal control were disclosed by the audit of the financial statements and whether any such conditions were material weaknesses. (iii) A statement as to whether the audit disclosed any noncompliance which is material to the financial statements of the auditee. (iv) Where applicable, a statement that reportable conditions in . internal control over major programs were disclosed by the audit and whether any such conditions were material weaknesses. (v) The type of report the auditor issued on compliance for major 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 Ilttp://www.whitehouse.gov/ornb/circulars/a133/print/a133.html 4/12/05 eriod, 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 littp://www.whitehouse.gov/omb/circulars/a133/print/al33.html 4/12/05 .html 4/12/05 e 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. • http://www.whitehouse.gov/omb/circulars/a133/print/a133.html 4/12/05 mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensat ion at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 5 listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 Circular No. A-Hi S -- Audits.OI JLaies,Local uuvcttlliieilLS, Will 1vuu-1 Will vl6u...4u.a... , u6., 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. (3) Program income. (K) Real property acquisition and relocation assistance. • (L) Reporting. (M) Subrecipient monitoring. • (N) Special tests and provisions. (xili) 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 § .40O(b), respectively. (3) Using the information included in the reporting package described in http://www.whitehouse.gov/omb/circulars/aI 33/print/a133.html 4/12/05 reportable conditions in . internal control over major programs were disclosed by the audit and whether any such conditions were material weaknesses. (v) The type of report the auditor issued on compliance for major programs (i.e., unqualified opinion, qualified opinion, adverse opinion, or disclaimer of opinion). (vi) A 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 Ilttp://www.whitehouse.gov/ornb/circulars/a133/print/a133.html 4/12/05 eriod, 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 littp://www.whitehouse.gov/omb/circulars/a133/print/al33.html 4/12/05 .html 4/12/05 e 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. • http://www.whitehouse.gov/omb/circulars/a133/print/a133.html 4/12/05 mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensat ion at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 5 listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 Circular No. A-133 -- Audits of States, Local Governments, and Non-f roft Urganizau... rage Li or .» 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 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 the data collection form described in paragraph (b) of this section and one copy of the reporting package described in paragraph (c) of this section for: (1) The Federal clearinghouse to retain as an archival copy; and (2) Each Federal awarding agency when the schedule of findings and questioned costs disclosed audit findings relating to Federal awards that the Federal awarding agency provided directly or the summary schedule of prior audit findings reported the status of any audit findings relating to Federal awards that the Federal awarding agency provided directly. (e) Additional submission by subrecipients. (1) In addition to the requirements discussed in paragraph (d) of this section, auditees that are also subrecipients shall submit to each pass-through entity one copy of the reporting package described in paragraph (c) of this section for each pass- through entity when the schedule of findings and questioned costs disclosed audit findings relating to Federal awards that the pass-through entity provided or the summary schedule of prior audit findings reported the status of any audit findings relating to Federal awards that the pass-through entity provided. (2) Instead of submitting the reporting package to a pass-through entity, when a subrecipient is not required to submit a reporting package to a pass- through entity pursuant to paragraph (e)(1) of this section, the subrecipient shall provide written notification to the pass-through entity that: an audit of the subrecipient was conducted in accordance with this part (including the period covered by the audit and the name, amount, and CFDA number of the Federal award(s) provided by the pass-through entity); the schedule of findings and questioned costs disclosed no audit findings relating to the Federal award(s) that the pass-through entity provided; and, the summary • schedule of prior audit findings did not report on the status of any audit findings relating to the Federal award(s) that the pass-through entity provided. A subrecipient may submit a copy of the reporting package described in paragraph (c) of this section to a pass-through entity to comply with this notification requirement, • lattn://www.whitehouse.gov/omb/circulars/a133/print/a133.11tml 4/12/05 ral auditors may perform all or part of the work required under this part if they comply fully with the requirements of this part. • http://www.whitehouse.gov/omb/circulars/a133/print/a133.html 4/12/05 mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensat ion at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 5 listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 Circular No. A-133 -- Audits of states, Local uovernments, ana ivon-rruiii ragc (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 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. Table of Contents 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, http://www.whitehouse.gov/omb/circulars/a 133/print/a 133.html 4/12/05 his section to a pass-through entity to comply with this notification requirement, • lattn://www.whitehouse.gov/omb/circulars/a133/print/a133.11tml 4/12/05 ral auditors may perform all or part of the work required under this part if they comply fully with the requirements of this part. • http://www.whitehouse.gov/omb/circulars/a133/print/a133.html 4/12/05 mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensat ion at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 5 listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 Circular No. A-133 -- Audits of States, Local Uoverrunents, ana ivon-rruii1 v u6,-, • 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 far 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 recipent'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 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). http://www.whitehouse.gov/omb/circulars/a l 3 3/print/a 1 33.html 4/12/05 • lattn://www.whitehouse.gov/omb/circulars/a133/print/a133.11tml 4/12/05 ral auditors may perform all or part of the work required under this part if they comply fully with the requirements of this part. • http://www.whitehouse.gov/omb/circulars/a133/print/a133.html 4/12/05 mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensat ion at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 5 listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 Lircular No. -- HUQItS oI JPdLCS, LUGat \JOVC1.1t1=utJ, auu twtt-rtviu , (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 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. http://www.whitehouse.gov/omb/circulars/a 133/print/a 1 33.html 4/12/05 ate 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). http://www.whitehouse.gov/omb/circulars/a l 3 3/print/a 1 33.html 4/12/05 • lattn://www.whitehouse.gov/omb/circulars/a133/print/a133.11tml 4/12/05 ral auditors may perform all or part of the work required under this part if they comply fully with the requirements of this part. • http://www.whitehouse.gov/omb/circulars/a133/print/a133.html 4/12/05 mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensat ion at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 5 listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 Circular No. A-133 -- Audits of States, Local Governments, and Non-rront oiganizau... rage LD ut • (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. 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 §T 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). • Table of__Contents • 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 http://www.whitehouse.gov/omb/circulars/a133/print/a133.html 4/12/05 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). http://www.whitehouse.gov/omb/circulars/a l 3 3/print/a 1 33.html 4/12/05 • lattn://www.whitehouse.gov/omb/circulars/a133/print/a133.11tml 4/12/05 ral auditors may perform all or part of the work required under this part if they comply fully with the requirements of this part. • http://www.whitehouse.gov/omb/circulars/a133/print/a133.html 4/12/05 mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensat ion at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 5 listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 Circular No. H-1uS -- HUQILS OI Jlate6, LUUa1 vUvciilliicuw, auu 1vUu-1 ivi.L �,E .: . ...... _ administered Federal awards during such fiscal year, provided that each such audit shall encompass the financial statements and schedule of expenditures of Federal awards for each such department, agency, and other organizational unit, which shall be considered to be a non-Federal entity. The financial statements and schedule of expenditures of Federal awards shall be for the same fiscal year. • (b) Financial statements. The auditor shall determine whether the financial • statements of the auditee are presented fairly in all material respects in conformity with generally accepted accounting principles. The auditor shall also determine whether the schedule of expenditures of Federal awards is presented fairly in all material respects in relation to the auditee's financial statements taken as a whole. • (c) Internal control. (1) In addition to the requirements of GAGAS, the • auditor shall perform procedures to obtain an understanding of internal control over Federal programs sufficient to plan the audit to support a low assessed level of control risk for major programs. (2) Except as provided in paragraph (c)(3) of this section, the auditor shall: (i) Plan the testing. of internal control over major programs to support a low assessed level of control risk for the assertions relevant to the compliance requirements for each major program; and (ii) Perform testing of internal control as planned in paragraph (c)(2)(i) of this section. • (3) When internal control over some or all of the compliance requirements for a major program are likely to be ineffective in preventing or detecting • noncompliance, the planning and performing of testing described in paragraph (c)(2) of this section are not required for those compliance requirements. However, the auditor shall report a reportable condition (including whether any such condition is a material weakness) in accordance with § .510, assess the related control risk at the maximum, and consider whether additional compliance tests are required because of ineffective 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 http://www. .whitehouse.gov/omb/circulars/a133/print/a133.htm1 4/12/05 y perform all or part of the work required under this part if they comply fully with the requirements of this part. • http://www.whitehouse.gov/omb/circulars/a133/print/a133.html 4/12/05 mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensat ion at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 5 listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 .Circular No. A-133 --Audits of States, Local Governments, and Non-front Ui•ganiLau... rage L I 01 J..) • 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 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 http://www.whitehouse.goviomb/circulars/a133/print/a133.html 4/12/05 ments to test, and http://www. .whitehouse.gov/omb/circulars/a133/print/a133.htm1 4/12/05 y perform all or part of the work required under this part if they comply fully with the requirements of this part. • http://www.whitehouse.gov/omb/circulars/a133/print/a133.html 4/12/05 mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensat ion at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 5 listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 • Lircular 1NO. H-1» -- HUU1tS o1.3laies, l,uLai vvv 1..IL.. . .6. .: ... r, - opinion, adverse opinion, or disclaimer of opinion); (ii) Where applicable, a statement that reportable conditions in internal control were disclosed by the audit of the financial statements and whether any such conditiOns were material weaknesses; • • (iii) A statement as to whether the audit disclosed any noncompliance which is material to the financial statements of the auditee; (iv) Where applicable, a statement that reportable conditiOns in internal control over major programs were disclosed by the audit and whether any such conditions were material weaknesses; (v) The type of report the auditor issued on compliance for major programs (i.e., unqualified opinion, qualified opinion, adverse opinion, or disclaimer of opinion); (vi) A statement as to whether the audit disclosed any audit findings which the auditor is required.to report under § .510 (a); (vii) An identification of major programs; (viii)The dollar threshold used to distinguish between Type A and Type B programs, as described in § .520(b); and (ix) A statement as to whether the auditee qualified as a low-risk auditee under § .530. (2) Findings relating to the financial statements which are required to be reported in accordance with GAGAS. (3) Findings and questioned costs for Federal awards which shall include audit findings as defined in § .510(a). • (i) Audit findings (e.g., internal control findings, compliance findings, questioned costs, or fraud) which relate to the same issue should be presented as a single audit finding. Where practical, audit findings should be organized by Federal agency or pass-through entity. • (ii) Audit findings which relate to both the financial statements and Federal awards, as reported under paragraphs (d)(2) and (d)(3) of this section, respectively, should be reported in both sections of the schedule. However, the reporting in one section of the schedule may be in summary form with a reference to a detailed reporting in the other section of the schedule. § .510 Audit findings. (a) Audit findings reported. The auditor shall report the following as audit findings in a schedule of findings and questioned costs: (1) Reportable conditions in internal control over major programs. The bttp://www.whitehouse.gov/omb/circulars/a13 3/print/a133.html 4/12/05 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 http://www.whitehouse.goviomb/circulars/a133/print/a133.html 4/12/05 ments to test, and http://www. .whitehouse.gov/omb/circulars/a133/print/a133.htm1 4/12/05 y perform all or part of the work required under this part if they comply fully with the requirements of this part. • http://www.whitehouse.gov/omb/circulars/a133/print/a133.html 4/12/05 mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensat ion at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 5 listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 'Circular No. A-133 -- Audits of States, Local UovernmenIs, anu ivuu ri�ii� su...� - ••.• -b� auditor's determination of whether a deficiency in internal control is a reportable condition for the purpose of reporting an audit finding is in relation to a type of compliance requirement for a major program or an audit objective identified in the compliance supplement. The auditor shall identify reportable conditions which are individually or cumulatively material weaknesses. (2) Material noncompliance with the provisions of laws, regulations, contracts, or grant agreements related to a major program. The auditor's determination of whether a noncompliance with the provisions of laws, regulations, contracts, or grant agreements is material for the purpose of reporting an audit finding is in relation to a type of compliance requirement for a major program or an audit objective identified in the compliance supplement. (3) Known questioned costs which are greater than $10,000 for a type of compliance requirement for a major program. Known questioned costs are those specifically identified by the auditor. In evaluating the effect of questioned costs on the opinion.on compliance, the auditor considers the best • estimate of total costs questioned (likely questioned costs), not just the questioned costs specifically identified (known questioned costs). The auditor shall also report known questioned costs when likely questioned costs are greater than $10,000 for a type of compliance requirement for a major • program. In reporting questioned costs, the auditor shall include information to provide proper perspective for judging the prevalence and consequences of the questioned costs. • (4) Known questioned costs which are greater than $10,000 for a Federal program which is not audited as a major program. Except for audit follow-up, the auditor is not required under this part to perform audit procedures for such a Federal program; therefore, the auditor will normally not find questioned costs for a program which is not audited as a major program. However, if the auditor does become aware of questioned costs for a Federal program which is not audited as a major program (e.g., as part of audit follow-up or other audit procedures) and the known questioned costs are greater than $10,000, then the auditor shall report this as an audit finding. (5) The circumstances concerning why the auditor's report on compliance for major programs is other than an unqualified opinion, unless such circumstances are otherwise reported as audit findings in the schedule of findings and questioned costs for Federal awards. (6) Known fraud affecting a Federal award, unless such fraud is otherwise reported as an audit finding in the schedule of findings and questioned costs for Federal awards. This paragraph does not require the auditor to make an additional reporting when the auditor confirms that the fraud was reported outside of the auditor's reports under the direct reporting requirements of GAGAS. • (7) Instances where the results of audit follow-up procedures disclosed that the summary schedule of prior audit findings prepared by the auditee in accordance with § .315(b) materially misrepresents the status of any prior audit finding. (b) Audit finding detail. Audit findings shall be presented in sufficient detail for the auditee to prepare a corrective action plan and, take corrective action and for Federal agencies and pass-through entities to arrive at a http://www.whitehouse.gov/omb/circulars/a133/print/a133.html 4/12/05 workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensat ion at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 5 listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 uirdular NO. A 1_5.J -- HUUiiS Ul JU1L , L,U a1 vvvciiuiicui� aiiu iwu i !VA../Lvib..,a b management decision. The following specific information shall be 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. § .5515 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 h.ttp://www.whitehouse.goviomb%circulars/a133/print/a133.html 4/12/05 it 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 http://www.whitehouse.gov/omb/circulars/a133/print/a133.html 4/12/05 workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensat ion at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 5 listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 Circular No. A-133 -- Audits of States, Local Governments, and gain ... ubc. • �1 obtain copies of working papers, as is reasonable and necessary. § .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 e 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. Type Fora A program to be con sidered sidered 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 §T.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 9 affecting a Type A program have significantly increased risk; and apply http://www.whitehouse.gov/omb/circularsial33/printial 3 3.11tml 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 http://www.whitehouse.gov/omb/circulars/a133/print/a133.html 4/12/05 workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensat ion at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 5 listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 circular No. A lu HUn1Is OI dales, LOcal <JUV 11lllcuL , aiiu ivvu ��ii� v,� .,..J� .... �,- �- . 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 end of the fiscal year to be audited of OMB's approval. • (d) Step 3. (1) The auditor shall identify Type B programs which are high- risk using professional judgment and the criteria in § .525. However, should the auditor select Option 2 under Step 4 (paragraph (e)(2)(i)(B) of this section), the auditor is not required to identify more high-risk Type B programs than the number of low-risk Type A programs. Except for known reportable conditions in internal control or compliance problems as discussed in § .525(b)(1), § .525(b)(2), and § .525(c)(1), a single criteria in § .525 would seldom cause a Type B program to be considered high-risk. (2) The auditor is not expected to perform risk assessments on relatively small Federal programs. Therefore, the auditor is only required to perform risk assessments on Type B programs that exceed the larger of: (i) $100,000 or three-tenths of one percent (.003) of total Federal awards expended when the auditee has less than or equal to $100 million in total Federal awards expended. (ii) $300,000 or three-hundredths of one percent (.0003) of total Federal awards expended when the auditee has more than $100 million In total Federal awards expended. (e) Step 4. At a minimum, the auditor shall audit all of the following as major programs: (1) All Type A programs, except the auditor may exclude any Type A programs identified as low-risk under Step 2 (paragraph (c)(1) of this section). (2) '(i) High-risk Type B programs as identified under either of the following two options: • (A) Option 1. At least one half of the Type B programs identified as high-risk under Step 3 (paragraph (d) of this section), except this paragraph (e)(2) (i)(A) does not require the auditor to audit more high-risk Type B programs than the number of low-risk Type A programs identified as low-risk under Step 2. (B) Option 2. One high-risk Type B program for each Type A program identified as low-risk under Step 2. (ii) When identifying which high-risk Type B programs to audit as major under either Option 1 or 2 in paragraph (e)(2)(i)(A) or (B), the auditor is encouraged to use an approach which provides an opportunity for different high-risk Type B programs'to be http://www..whitehouse.gov/omb/circulars/al 3 3/print/al 3 3.html 4/12/05 the results of audit follow-up; whether any changes in personnel or systems 9 affecting a Type A program have significantly increased risk; and apply http://www.whitehouse.gov/omb/circularsial33/printial 3 3.11tml 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 http://www.whitehouse.gov/omb/circulars/a133/print/a133.html 4/12/05 workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensat ion at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 5 listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 Circular No. A-1 L 3 -- Audits of States, Local - - - • audited as major over a period of time. (3) Such additional programs as may be necessary to comply with the percentagegrapheo coverage rule luidiscussed in re the auditorp to audit moh re programs of this 'on.as major s paragraph (e)(3) may q than the number of Type A programs. (f) Percentage of coverage rule. The auditor shall audit as major programs Federal programs with Federal awards expended that, in the aggregate, encompass at least 50 percent of total Federal awards expended. If the auditee meets the criteria in § .530 for a low-risk auditee, the auditor need only audit as major programs Federal programs with Federal awards expended that, in the aggregate, encompass at least 25 percent of total Federal awards expended. (g) Documentation of risk. The auditor shall document in the working papers the risk analysis process used in determining major programs. (h) Auditor's judgment. When the major program determination was performed and documented in accordance with this part, the auditor's judgment in applying the risk-based approach to determine major programs shall be presumed correct. Challenges by Federal agencies and pass-through entities shall only be for clearly improper use of the guidance in this part. However, Federal agencies and pass-through entities may provide auditors guidance about the risk of a particular Federal program and the auditor shall • consider this guidance in determining major programs in audits not yet completed. (i) Deviation from use of risk criteria. For first-year audits, the auditor may elect to determine major programs as all Type A programs plus any Type B programs as necessary to meet the percentage of coverage rule discussed in paragraph (f) of this section. Under this option, the auditor would not be required to perform the procedures discussed in paragraphs (c), (d), and (e) of this section. (1) A first-year audit is the first year the entity is audited under this part or the first year of a change of auditors. (2) To ensure that a frequent change of auditors would not preclude audit of high-risk Type B programs, this election for first-year audits may not be used by an auditee more than once in every three years, • • § .525 Criteria for Federal program risk. (a) General. The auditor's determination should be based on an overall • evaluation of the risk of noncompliance occurring which could be material to the Federal program. The auditor shall use auditor judgment and consider criteria, such as described in paragraphs (b), (c), and (d) of this section, to • identify risk in Federal programs. Also, as part of the risk analysis, the auditor may wish to discuss a particular Federal program with auditee • management and the Federal agency or pass-through entity. (b) Current and prior audit experience. (1) Weaknesses in internal • control over Federal programs would indicate higher risk. Consideration should be given to the control environment over Federal programs and such • littp://www.whitehouse.gov/omb/circulars/a133/print/al 33.litml 4/12/05 use.gov/omb/circularsial33/printial 3 3.11tml 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 http://www.whitehouse.gov/omb/circulars/a133/print/a133.html 4/12/05 workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensat ion at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 5 listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 Circular No. A-1.3.i -- Audits of states, Local uovernrnenns, anu i un-rruiu vigaiiiL.tto... ra6c vi 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 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 http:i/www:.whitehouse.gov/omb/circulars/a133/print/al33.html 4/12/05 er risk. Consideration should be given to the control environment over Federal programs and such • littp://www.whitehouse.gov/omb/circulars/a133/print/al 33.litml 4/12/05 use.gov/omb/circularsial33/printial 3 3.11tml 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 http://www.whitehouse.gov/omb/circulars/a133/print/a133.html 4/12/05 workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensat ion at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 5 listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 ,L.ircular No. - • 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. (d) None of the Federal programs had audit findings from any of the following in either of the preceding two years (or, in the case of biennial audits, preceding two audit periods) in which they were classified as Type A programs: (1) Internal control deficiencies which were identified as material • weaknesses; (2) Noncompliance with the provisions of laws, regulations, contracts, or grant agreements which have a material effect on the Type A program; or(3) Known or likely questioned costs that exceed five percent of the total Federal awards expended for a Type A program during the year. Appendix A to Part _ - Data Collection....Fo_rm,...(form.._SF-_SAC.) Appendix B to Part - Circular A-133Comp.liance._.Su.p.plement • Table of Contents. Return to this article at: • http.:.//www,;whitehpuse.g.ov/omb/circulars/a133/a133.html • Glick to Print r this document r' • hrtp://www.whitehouse.gov/omb/circulars/a 133/print/al 33.htm1 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 http:i/www:.whitehouse.gov/omb/circulars/a133/print/al33.html 4/12/05 er risk. Consideration should be given to the control environment over Federal programs and such • littp://www.whitehouse.gov/omb/circulars/a133/print/al 33.litml 4/12/05 use.gov/omb/circularsial33/printial 3 3.11tml 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 http://www.whitehouse.gov/omb/circulars/a133/print/a133.html 4/12/05 workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensat ion at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 5 listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 PLEASE COMPLETE THE ENTIRE FORM. Exhibit K CITY OF OMAHA PLANNING DEPARTMENT HOUSING AND COMMUNITY DEVELOPMENT OCCUPANCY REPORT A. GENERAL INFORMATION Project Name Borrower Name DOB SSN Co-Borrower Name DOB SSN Address City Funds Requested $ Fund Source HOME ❑ CDBG ❑ NAHTF ❑ DEMOGRAPHICS & ANTICIPATED INCOME OF ALL HOUSEHOLD MEMBERS Head of Household is: Male ❑ Female ❑ Elderly ❑ Number of Occupants: Total No. Adults No. Children Under 18 Please enter ethnicity and race for each household member. Below are the 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 White(W) Black or African American (B) Asian (A) American Indian or Alaska Native (AI) Native Hawaiian or Other Pacific Islander(PI) (See Above) Anticipated Anticipated Name of Household Relationship Ethnicity Monthly Annual Member to Borrower Age (H or NH) Race Handicap Income Income Borrower ***** $ $ Co-Borrower $ $ $ $ $ $ $ $ $ $ TOTAL $ $ Notes: 100%MEDIAN FAMILY INCOME (MFI)FOR HI-I SIZE $ %HOUSEHOLD MEDIAN FAMILY INCOME %BORROWER MEDIAN FAMILY INCOME CENSUS TRACT NUMBER OF BEDROOMS Authorized Agency Representative Date Computing Annual Income Form must be attached. 6/15/0 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....Fo_rm,...(form.._SF-_SAC.) Appendix B to Part - Circular A-133Comp.liance._.Su.p.plement • Table of Contents. Return to this article at: • http.:.//www,;whitehpuse.g.ov/omb/circulars/a133/a133.html • Glick to Print r this document r' • hrtp://www.whitehouse.gov/omb/circulars/a 133/print/al 33.htm1 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 http:i/www:.whitehouse.gov/omb/circulars/a133/print/al33.html 4/12/05 er risk. Consideration should be given to the control environment over Federal programs and such • littp://www.whitehouse.gov/omb/circulars/a133/print/al 33.litml 4/12/05 use.gov/omb/circularsial33/printial 3 3.11tml 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 http://www.whitehouse.gov/omb/circulars/a133/print/a133.html 4/12/05 workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensat ion at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 5 listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 PLEASE COMPLETE THE ENTIRE FORM. Exhibit K Choose Funding Program: (Circle all applicable) CDBG HOME ESG SHP Other CITY OF OMAHA-TENANT SURVEY FORM 200 A. GENERAL INFORMATION Tenant Name(s) Telephone Address Apt. No. Initial Date of Lease Recertification Lease Date DEMOGRAPHICS& ANTICIPATED INCOME OF ALL HOUSEHOLD MEMBERS Head of Household is: Male ❑ 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(Al); Native Hawaiian or Other Pacific Islander(PI) Other(0)(Please specify) Anticipated Anticipated Name of Household Member (H or NH) (See Above) Monthly Annual Age Ethnicity Race Handicap Income Income $ $ $ $ $ $ $ $ TOTAL $ $ 100%MEDIAN FAMILY INCOME(MFI)FOR HH SIZE $ %OF MFI FOR HH SIZE B. HOUSING CHARACTERISTICS Housing Costs HUD Rent Limits Monthly Housing Cost: Actual Contract Rent $ Average Monthly Utility Cost $ Total Monthly Housing Cost $ $ Subsidized Rent Assistance Received(Please list source and amount): Section 8: $ Other Assistance: Source Amount $ No Assistance Unit Type: Efficiency ❑ 1 BR ❑ 2 BR❑ 3 BR ❑ Other❑ Handicap Accessible Unit: Yes ❑ No ❑ Check one: 50%Unit❑ 60%Unit❑ 80%Unit❑ C. TENANTS IN-PLACE AT TIME OF LOAN CLOSING -Non-disclosure Form Required D. REMARKS: Owner or Authorized Representative Phone Date Please attach utility allowance determination form, City of Omaha Computing Annual Income Form and current lease agreement with each Tenant Survey. EQUAL IIOV31110 O PPORT VlITY Revised 6/12/06 Page 1 of 2 A-133Comp.liance._.Su.p.plement • Table of Contents. Return to this article at: • http.:.//www,;whitehpuse.g.ov/omb/circulars/a133/a133.html • Glick to Print r this document r' • hrtp://www.whitehouse.gov/omb/circulars/a 133/print/al 33.htm1 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 http:i/www:.whitehouse.gov/omb/circulars/a133/print/al33.html 4/12/05 er risk. Consideration should be given to the control environment over Federal programs and such • littp://www.whitehouse.gov/omb/circulars/a133/print/al 33.litml 4/12/05 use.gov/omb/circularsial33/printial 3 3.11tml 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 http://www.whitehouse.gov/omb/circulars/a133/print/a133.html 4/12/05 workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensat ion at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 5 listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 DEFINITIONS: le 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. Revised 6/12/06 Page 2 of 2 slander(PI) Other(0)(Please specify) Anticipated Anticipated Name of Household Member (H or NH) (See Above) Monthly Annual Age Ethnicity Race Handicap Income Income $ $ $ $ $ $ $ $ TOTAL $ $ 100%MEDIAN FAMILY INCOME(MFI)FOR HH SIZE $ %OF MFI FOR HH SIZE B. HOUSING CHARACTERISTICS Housing Costs HUD Rent Limits Monthly Housing Cost: Actual Contract Rent $ Average Monthly Utility Cost $ Total Monthly Housing Cost $ $ Subsidized Rent Assistance Received(Please list source and amount): Section 8: $ Other Assistance: Source Amount $ No Assistance Unit Type: Efficiency ❑ 1 BR ❑ 2 BR❑ 3 BR ❑ Other❑ Handicap Accessible Unit: Yes ❑ No ❑ Check one: 50%Unit❑ 60%Unit❑ 80%Unit❑ C. TENANTS IN-PLACE AT TIME OF LOAN CLOSING -Non-disclosure Form Required D. REMARKS: Owner or Authorized Representative Phone Date Please attach utility allowance determination form, City of Omaha Computing Annual Income Form and current lease agreement with each Tenant Survey. EQUAL IIOV31110 O PPORT VlITY Revised 6/12/06 Page 1 of 2 A-133Comp.liance._.Su.p.plement • Table of Contents. Return to this article at: • http.:.//www,;whitehpuse.g.ov/omb/circulars/a133/a133.html • Glick to Print r this document r' • hrtp://www.whitehouse.gov/omb/circulars/a 133/print/al 33.htm1 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 http:i/www:.whitehouse.gov/omb/circulars/a133/print/al33.html 4/12/05 er risk. Consideration should be given to the control environment over Federal programs and such • littp://www.whitehouse.gov/omb/circulars/a133/print/al 33.litml 4/12/05 use.gov/omb/circularsial33/printial 3 3.11tml 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 http://www.whitehouse.gov/omb/circulars/a133/print/a133.html 4/12/05 workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensat ion at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 5 listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 y CO a> a) Ems, f.. 5 � � O CA Ca �1 0 d o a) • E E 4 arw 8 li on L as a) d (4 V) V) Ud a ,.... a) a) ° E L a) O L 0 a) • Cd C U > II L a) 1. p 40 G cc: a) H H 0 0 ( z a) C v N h ~ N ' •, z 0 0 w ` 3 s W x cd d a)O W o E-� W d d C 0" g a �... d — .m •� W O w a N p �� C . a) a> ct .� on w> Z d c C Q a W w Z`.. mac a) a) •o 0 0 ZN w IA z zz d Q ......r..... d a < a) c a0. C7 Q Ca 0 H Q Zti rs: Hw xH .x c L g• p wwwwww ,0U ❑0 �, WO p , 'RI 0 0 pU .. < � � Imo on of [T.) W >. N C.) ›, E E O o '- C C E al 0 3 0 0 tt 5 .ti C W t) N.. ..) 0°.rza ao ,E f NY > P.) o • ¢ ai4 . .'U . . . E ot o • � � E �� . 0 d L e a) . ,-. a) y p Grr a) O S. iC W v) a) a> �'+ C W O y d UO �e�r O O E 8L.' cd N 'C1 O O a> Ri c~d d @ O .~.. > >, C — c z cde4o ° 3 > ¢ U c� � .'=' 0 o U � •nd .-awl •� ¢ c ¢ a~i 0 Z C O yw4. c� O co O O Y Q Z aC) wLa11 Return to this article at: • http.:.//www,;whitehpuse.g.ov/omb/circulars/a133/a133.html • Glick to Print r this document r' • hrtp://www.whitehouse.gov/omb/circulars/a 133/print/al 33.htm1 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 http:i/www:.whitehouse.gov/omb/circulars/a133/print/al33.html 4/12/05 er risk. Consideration should be given to the control environment over Federal programs and such • littp://www.whitehouse.gov/omb/circulars/a133/print/al 33.litml 4/12/05 use.gov/omb/circularsial33/printial 3 3.11tml 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 http://www.whitehouse.gov/omb/circulars/a133/print/a133.html 4/12/05 workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensat ion at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 5 listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 Allowances for U.S.Department of Housing OMB Approval No. 2577-0169 Tenant-Furnished Utilities and Urban Development (exp. 03/31/2004) And Other Services Office of Public and Indian Housing See Public Reporting Statement and Instructions on back Locally Unit Type Date(mm/dd/yyyy) Omaha Housing Authority Multi-Family 07/01/2005 Utility or Service Monthly Dollar Allowances 0 BR 1 BR 2 BR 3 BR 4 BR 5 BR Utility or Service Monthly Dollar Allowances Housing a. Natural Gas 17 24 30 37 47 54 b. Bottle Gas 17 24 30 37 47 54 c. Electric 17 24 31 38 48 55 d. Oil/Other 30 42 54 66 84 96 Cooking a. Natural Gas 2 2 3 3 4 5 b. Bottle Gas 2 2 3 3 4 5 c. Electric 3 4 5 7 8 10 d. Coal/Other NA NA NA NA NA NA Other Electric 12 17 22 27 35 40 Air Conditioning 4 6 7 9 12 13 Water Heating a.Natural Gas 5 6 8 10 13 14 b. Bottle Gas 5 6 8 10 13 14 c. Electric 8 11 14 17 22 25 d. Coal/Other NA NA NA NA NA NA Water/Sewer 10 13 17 21 27 30 Trash Collection CITY CITY CITY CITY CITY CITY Range/Microwave 4 4 4 4 4 4 Refrigerator 6 6 6 6 6 6 Other—specify Actual Family Allowances: To be used by the family to compute allowance. Utility or Service Per month cost Complete below for the actual unit rented. Heating $ Name of Family: Cooking Other Electric Address of Unit Air Conditioning Water Heating Water Sewer Trash Collection Range/Microwave Refrigerator Number of Bedrooms: Other Total $ Previous editions are obsolete Page 1 of 1 form HUD-52667(12/97) Ref. Handbook 7420.8 C O yw4. c� O co O O Y Q Z aC) wLa11 Return to this article at: • http.:.//www,;whitehpuse.g.ov/omb/circulars/a133/a133.html • Glick to Print r this document r' • hrtp://www.whitehouse.gov/omb/circulars/a 133/print/al 33.htm1 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 http:i/www:.whitehouse.gov/omb/circulars/a133/print/al33.html 4/12/05 er risk. Consideration should be given to the control environment over Federal programs and such • littp://www.whitehouse.gov/omb/circulars/a133/print/al 33.litml 4/12/05 use.gov/omb/circularsial33/printial 3 3.11tml 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 http://www.whitehouse.gov/omb/circulars/a133/print/a133.html 4/12/05 workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensat ion at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 5 listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 (=„XH I4_5I I l __ FINANCIAL STATUS REPORT FORM (Please attach AIA G702 form or other comparable supporting documentation for expenditures) 'Developer Name: Program: CDBG HOME Developer's Contractor (Circle) ESG SHIP Address: Other Project Type: Acquisition Loan #: (Circle all New Construction that apply) Rehabilitation Reporting Period From: To: PROJECT TOTAL PREVIOUS CURRENT % BUDGET BUDGET EXPENDITURES EXPENDITURES COMPLETE REMAINING Construction Hard Costs $ $ $ % $ Architect $ $ $ % $ Engineering $ $ $ % $ Legal $ $ $ % $ Appraisal $ $ $ % $ Audit $ $ $ % $ Developer Fee $ $ $ % $ Construction Contingency $ $ $ % $ Other—Please Specify $ $ $ % $ $ $ $ % $ $ $ $ % $ $ $ $ % $ TOTALS $ $ $ % $ Reimbursement Requested: $ Program Income This Month $ CITY BANK TOTAL PAY REQUEST $ $ $ PROJECT TOTAL PREVIOUS CURRENT % BUDGET FUNDING SOURCES BUDGET EXPENDITURES EXPENDITURES COMPLETE REMAINING City funds $ $ $ % $ Owner Cash Equity $ $ $ % $ LIHTC $ $ $ % $ Private Funds $ $ $ % $ Surface & Sub-surface Debris Grant $ $ $ % $ Other. $ $ $ % $ TOTAL $ $ $ % $ 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 Form 3/01 Revised 3/7/06 Refrigerator Number of Bedrooms: Other Total $ Previous editions are obsolete Page 1 of 1 form HUD-52667(12/97) Ref. Handbook 7420.8 C O yw4. c� O co O O Y Q Z aC) wLa11 Return to this article at: • http.:.//www,;whitehpuse.g.ov/omb/circulars/a133/a133.html • Glick to Print r this document r' • hrtp://www.whitehouse.gov/omb/circulars/a 133/print/al 33.htm1 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 http:i/www:.whitehouse.gov/omb/circulars/a133/print/al33.html 4/12/05 er risk. Consideration should be given to the control environment over Federal programs and such • littp://www.whitehouse.gov/omb/circulars/a133/print/al 33.litml 4/12/05 use.gov/omb/circularsial33/printial 3 3.11tml 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 http://www.whitehouse.gov/omb/circulars/a133/print/a133.html 4/12/05 workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensat ion at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 5 listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 X i-1 t e, Certification for U.S. Department of Housing and Urban Development -a Drug-Free Workplace Applicant Name City of Council Bluffs, Iowa Program/Activity Receiving Federal Grant Funding • HOME Investment Partnerships Program Acting on behalf of the above named Applicant as its Authorized Official, I make the following certifications and agreements to the Department of Housing and Urban Development (IIUD) regarding the sites listed below: I certify that the above named Applicant will or will continue (1) Abide by the terms of the statement; and to provide a drug free workplace by: (2) Notify the employer in writing of his or her convic- a. Publishing a statement notifying employees that the un- tion for a violation of a criminal drug statute occurring in the lawful manufacture, distribution, dispensing,possession,or use workplace no later than five calendar days after such conviction; of a controlled substance is prohibited in the Applicant's work- e. Notifying the agency in writing, within ten calendar days place and specifying the actions that will be taken against after receiving notice under subparagraph d.(2) from an em- employees for violation of such prohibition. ployee or otherwise receiving actual notice of such conviction. b. Establishing an on-going drug-free awareness program to Employers of convicted employees must provide notice,includ- inform employees --- ing position title, to every grant officer or other designee on (l) The dangers of drug abuse in the workplace; whose grant activity the convicted employee was working, unless the Federalagency has designated a central point for the (2) The Applicant's policy of maintaining a drug-free receipt of such notices. Notice shall include the identification workplace; number(s) of each affected grant; (3) Any available drug counseling, rehabilitation, and f. Taking one of the following actions, within 30 calendar employee assistance programs; and days of receiving notice under subparagraph d.(2),with respect (4) The penalties that may be imposed upon employees to any employee who is so convicted --- for drug abuse violations occurring in the workplace. (1) Taking appropriate personnel action against such an employee, up to and including termination, consistent with the c. Making it a requirement that each employee to be engaged in the performance of the grant be given a copy of the statement requirements of the Rehabilitation Act of 1973, as amended; or required by paragraph a.; (2) Requiring such employee to participate satisfacto- d. Notifying the employee in the statement required by para- rily in a drug abuse assistance or rehabilitation program ap- proved for such purposes by a Federal,State,or local health, law graph a. that, as a condition of employment under the grant, the enforcement, or other appropriate agency; employee will --- g. Making a good faith effort to continue to maintain a drug- free workplace through implementation of paragraphs a. thru f. 2. Sites for Work Performance. The Applicant shall list(on separate pages)the site(s)for the performance of work done in connection with the HUD funding of the program/activity shown above: Place of Performance shall include the street address, city, county, State, and zip code. Identify each sheet with the Applicant name and address and the program/activity receiving grant funding.) City of Council Bluffs 209 Pearl Street Council Bluffs, IA 51503 Check here 'if there are workplaces on file that are not identified on the attached sheets. ] hereby certify that all the information stated herein,as well as any information provided in the accompaniment herewith, is true and accurate. Warning: HUD will prosecute false claims and statements. Conviction may result in criminal and/or civil penalties. (18 U.S.C.1001,1010,1012: 31 U.S.C.3729,3802) Name of Authorized Official ;Title Thomas P. Hanafan Mayor Signature Date X June 23, 2006 form H U D50070(3/98) ref.Handbooks 7417.1,7475.13,7485.1&.3 n addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 • Exhibit N 24 CFR 85.43 ENFORCEMENT (a) Remedies for non-compliance. If a grantee or sub-grantee materially fails to comply with any term of an award, whether stated in a federal statute or regulation, an assurance, in a State plan or application, a notice of award, or elsewhere, the awarding agency may take one or more of the following actions, as appropriate in the circumstances: (1) Temporarily withhold cash payments pending correction of the deficiency by the grantee or sub-grantee or more severe enforcement action by the awarding agency, (2) Disallow (that is, deny both use of funds and matching credit for) all or part of the cost of the activity or action not in compliance, (3) Wholly or partly suspend or terminate the current award for the grantee's or sub- grantee's program, (4) Withhold further awards for the program, or (5) Take other remedies that may be legally available. (b) Hearings, appeals. In taking an enforcement action, the awarding agency will provide the grantee or sub-grantee an opportunity for such hearing, appeal or other administrative proceeding to which the grantee or sub-grantee is entitled 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-cancellable, 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 ired by para- rily in a drug abuse assistance or rehabilitation program ap- proved for such purposes by a Federal,State,or local health, law graph a. that, as a condition of employment under the grant, the enforcement, or other appropriate agency; employee will --- g. Making a good faith effort to continue to maintain a drug- free workplace through implementation of paragraphs a. thru f. 2. Sites for Work Performance. The Applicant shall list(on separate pages)the site(s)for the performance of work done in connection with the HUD funding of the program/activity shown above: Place of Performance shall include the street address, city, county, State, and zip code. Identify each sheet with the Applicant name and address and the program/activity receiving grant funding.) City of Council Bluffs 209 Pearl Street Council Bluffs, IA 51503 Check here 'if there are workplaces on file that are not identified on the attached sheets. ] hereby certify that all the information stated herein,as well as any information provided in the accompaniment herewith, is true and accurate. Warning: HUD will prosecute false claims and statements. Conviction may result in criminal and/or civil penalties. (18 U.S.C.1001,1010,1012: 31 U.S.C.3729,3802) Name of Authorized Official ;Title Thomas P. Hanafan Mayor Signature Date X June 23, 2006 form H U D50070(3/98) ref.Handbooks 7417.1,7475.13,7485.1&.3 n addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 (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. n plan 18. State C. Basic Guidelines 1. Factors affecting allowability of costs 2. Reasonable costs 3. Allocable costs 4. Applicable credits D. Composition of Cost 1. Total cost 2. Classification of costs 4 of 53 4/16/03 1:39 PM 4/16/03 1:39 P INING 6/22/90 6 ND ATTACHMENT P:\PLN3\13639pjm.doc Attachment 1 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). Revised 10/8/99 ; employee will --- g. Making a good faith effort to continue to maintain a drug- free workplace through implementation of paragraphs a. thru f. 2. Sites for Work Performance. The Applicant shall list(on separate pages)the site(s)for the performance of work done in connection with the HUD funding of the program/activity shown above: Place of Performance shall include the street address, city, county, State, and zip code. Identify each sheet with the Applicant name and address and the program/activity receiving grant funding.) City of Council Bluffs 209 Pearl Street Council Bluffs, IA 51503 Check here 'if there are workplaces on file that are not identified on the attached sheets. ] hereby certify that all the information stated herein,as well as any information provided in the accompaniment herewith, is true and accurate. Warning: HUD will prosecute false claims and statements. Conviction may result in criminal and/or civil penalties. (18 U.S.C.1001,1010,1012: 31 U.S.C.3729,3802) Name of Authorized Official ;Title Thomas P. Hanafan Mayor Signature Date X June 23, 2006 form H U D50070(3/98) ref.Handbooks 7417.1,7475.13,7485.1&.3 n addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 Attachment "2" 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 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 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 ing a good faith effort to continue to maintain a drug- free workplace through implementation of paragraphs a. thru f. 2. Sites for Work Performance. The Applicant shall list(on separate pages)the site(s)for the performance of work done in connection with the HUD funding of the program/activity shown above: Place of Performance shall include the street address, city, county, State, and zip code. Identify each sheet with the Applicant name and address and the program/activity receiving grant funding.) City of Council Bluffs 209 Pearl Street Council Bluffs, IA 51503 Check here 'if there are workplaces on file that are not identified on the attached sheets. ] hereby certify that all the information stated herein,as well as any information provided in the accompaniment herewith, is true and accurate. Warning: HUD will prosecute false claims and statements. Conviction may result in criminal and/or civil penalties. (18 U.S.C.1001,1010,1012: 31 U.S.C.3729,3802) Name of Authorized Official ;Title Thomas P. Hanafan Mayor Signature Date X June 23, 2006 form H U D50070(3/98) ref.Handbooks 7417.1,7475.13,7485.1&.3 n addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 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 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) hout 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 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 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 ing a good faith effort to continue to maintain a drug- free workplace through implementation of paragraphs a. thru f. 2. Sites for Work Performance. The Applicant shall list(on separate pages)the site(s)for the performance of work done in connection with the HUD funding of the program/activity shown above: Place of Performance shall include the street address, city, county, State, and zip code. Identify each sheet with the Applicant name and address and the program/activity receiving grant funding.) City of Council Bluffs 209 Pearl Street Council Bluffs, IA 51503 Check here 'if there are workplaces on file that are not identified on the attached sheets. ] hereby certify that all the information stated herein,as well as any information provided in the accompaniment herewith, is true and accurate. Warning: HUD will prosecute false claims and statements. Conviction may result in criminal and/or civil penalties. (18 U.S.C.1001,1010,1012: 31 U.S.C.3729,3802) Name of Authorized Official ;Title Thomas P. Hanafan Mayor Signature Date X June 23, 2006 form H U D50070(3/98) ref.Handbooks 7417.1,7475.13,7485.1&.3 n addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 • Attachment 3 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. free workplace through implementation of paragraphs a. thru f. 2. Sites for Work Performance. The Applicant shall list(on separate pages)the site(s)for the performance of work done in connection with the HUD funding of the program/activity shown above: Place of Performance shall include the street address, city, county, State, and zip code. Identify each sheet with the Applicant name and address and the program/activity receiving grant funding.) City of Council Bluffs 209 Pearl Street Council Bluffs, IA 51503 Check here 'if there are workplaces on file that are not identified on the attached sheets. ] hereby certify that all the information stated herein,as well as any information provided in the accompaniment herewith, is true and accurate. Warning: HUD will prosecute false claims and statements. Conviction may result in criminal and/or civil penalties. (18 U.S.C.1001,1010,1012: 31 U.S.C.3729,3802) Name of Authorized Official ;Title Thomas P. Hanafan Mayor Signature Date X June 23, 2006 form H U D50070(3/98) ref.Handbooks 7417.1,7475.13,7485.1&.3 n addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 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. e performance of work done in connection with the HUD funding of the program/activity shown above: Place of Performance shall include the street address, city, county, State, and zip code. Identify each sheet with the Applicant name and address and the program/activity receiving grant funding.) City of Council Bluffs 209 Pearl Street Council Bluffs, IA 51503 Check here 'if there are workplaces on file that are not identified on the attached sheets. ] hereby certify that all the information stated herein,as well as any information provided in the accompaniment herewith, is true and accurate. Warning: HUD will prosecute false claims and statements. Conviction may result in criminal and/or civil penalties. (18 U.S.C.1001,1010,1012: 31 U.S.C.3729,3802) Name of Authorized Official ;Title Thomas P. Hanafan Mayor Signature Date X June 23, 2006 form H U D50070(3/98) ref.Handbooks 7417.1,7475.13,7485.1&.3 n addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 • • ATTACHMENT 4 INTEROFFICE MEMORANDUM Law Department DATE: July 31, 2002 TO: Reginald Young, Human Relations Director Daisy Burton, Planning Department • • FROM: Paul Kratz, City Attorney (G SUBJECT: OMH Circular A-110 • ..,:.......:....:.-n..-J. ._...e•..,... ... ._tue^ r....... .._...e.-r:r... _....w:..1.:......-..__... .. ram. .volt:iti1...}]..-:..1'a.:......:.......:..]:':^,�3:_:..._-......:....-.:.:.,::.::..•:r:r�:a-ems:"T s_::•r:^n�:r<=..,._uc,:.ey�::..:as:: ii;.:�_Ltr:_ ._._._..._...-. ._:,mot^per.�^c..nsS•..n::cx:r�.r_.:�rr..zvV_a..•- .. In a review of the proposed Interlocal Agreement between the City of Omaha and the • City of Council Bluffs regarding the allocation of Federal funds received by the City from HUD,_ the issue arose of contract compliance. After .discussions with Daisy Burton, Contract • Administration and Compliance Manager, Sharon Oamek, City Planner and Reginald Young, Director Human Relations, the Law Department has advised that the provisions of 10-196 will . not apply to this Interlocal Agreement. The Interlocal agreement provides that the City will receive funds allocated by HUD that will be passed through to Council Bluffs to use for its Low- . Moderate income housing projects. The City of Council Bluffs will award the contracts and will be required to comply with the Federal Regulations but will not be held to the provisions of 10- 196. • • PDK:skz c: Sharon Oamek, Compliance Officer PAP Memo.doc • pportunities 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. e performance of work done in connection with the HUD funding of the program/activity shown above: Place of Performance shall include the street address, city, county, State, and zip code. Identify each sheet with the Applicant name and address and the program/activity receiving grant funding.) City of Council Bluffs 209 Pearl Street Council Bluffs, IA 51503 Check here 'if there are workplaces on file that are not identified on the attached sheets. ] hereby certify that all the information stated herein,as well as any information provided in the accompaniment herewith, is true and accurate. Warning: HUD will prosecute false claims and statements. Conviction may result in criminal and/or civil penalties. (18 U.S.C.1001,1010,1012: 31 U.S.C.3729,3802) Name of Authorized Official ;Title Thomas P. Hanafan Mayor Signature Date X June 23, 2006 form H U D50070(3/98) ref.Handbooks 7417.1,7475.13,7485.1&.3 n addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 Attachment 5 U.S. Department of Housing and Urban Development COMMUNITY PLANNING AND DEVELOPMENT Special Attention of: Notice CPD-02-03 All Secretary's Representatives All State/Area Coordinators All CPD Office Directors Issued: May 2, 2003 All HOME Coordinators Expires: December 26, 2003 All HOME Participating Jurisdictions All CDBG Grantees All FHEO Field Directors SUBJECT: Accessibility Notice: Section 504 of the Rehabilitation Act of 1973 and The Fair Housing Act and their applicability to housing programs funded by the HOME Investment Partnerships Program and the Community Development Block Grant Program This Notice extends the provisions of Notice CPD 00-09 (originally issued December 26, 2000) through December 26, 2003. • Distribution: W-3-1 6 ND ATTACHMENT P:\PLN3\13639pjm.doc U.S. Department of Housing and Urban Development COMMUNITY PLANNING AND DEVELOPMENT Special Attention of: Notice CPD-00-9 All Secretary's Representatives All State/Area Coordinators All CPD Office Directors Issued: December 26, 2000 All HOME Coordinators Expires: December 26, 2001 All HOME Participating Jurisdictions All CDBG Grantees All FHEO Field Directors SUBJECT:Accessibility Notice: Section 504 of the Rehabilitation Act of 1973 and The Fair Housing Act and their applicability to housing programs funded by the HOME Investment Partnerships Program and the Community Development Block Grant Program PURPOSE The purpose of this Notice is to remind recipients of federal funds in the HOME Investment Partnerships Program (HOME) or the Community Development Block Grant (CDBG) Program of their obligation to comply with Section 504 of the Rehabilitation Act of 1973, the Fair Housing Act, and HUD's implementing Regulations (24 CFR Parts 8 and 100, respectively), which prohibit discrimination based on disability and establish requirements for program accessibility and physical accessibility in connection with housing programs. This Notice describes key compliance elements for housing assisted under the HOME and CDBG programs. However, recipients should review the specific provisions of the Fair Housing Act, Section 504, and their respective regulations in order to assure that their programs are administered in full compliance. Note with respect to Section 504, this Notice does not address the applicability of Section 504's physical accessibility requirements to homeownership programs financed with HOME/CDBG assistance. The Notice also recommends that recipients conduct updated self evaluations as a useful tool for enhancing efforts to comply with accessibility requirements in HOME/CDBG programs, as well as to document those efforts. Applicability This notice applies to new construction and rehabilitation of housing under the HOME and CDBG programs. Each primary recipient of federal funds from the HOME or CDBG program is responsible for providing this notice to each organization or other entity participating in the construction or rehabilitation of projects receiving such funding and for establishing policies and practices that it will use to monitor compliance of all covered programs, activities or work performed by subrecipients, contractors, subcontractors, management agents, etc. Distribution: W-3-1 ed 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. e performance of work done in connection with the HUD funding of the program/activity shown above: Place of Performance shall include the street address, city, county, State, and zip code. Identify each sheet with the Applicant name and address and the program/activity receiving grant funding.) City of Council Bluffs 209 Pearl Street Council Bluffs, IA 51503 Check here 'if there are workplaces on file that are not identified on the attached sheets. ] hereby certify that all the information stated herein,as well as any information provided in the accompaniment herewith, is true and accurate. Warning: HUD will prosecute false claims and statements. Conviction may result in criminal and/or civil penalties. (18 U.S.C.1001,1010,1012: 31 U.S.C.3729,3802) Name of Authorized Official ;Title Thomas P. Hanafan Mayor Signature Date X June 23, 2006 form H U D50070(3/98) ref.Handbooks 7417.1,7475.13,7485.1&.3 n addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 2 II. SECTION 504 OF THE REHABILITATION ACT OF 1973 Background The HOME and CDBG programs, through state and local governments, provide assistance that may be used for the construction or rehabilitation of affordable housing. HOME and CDBG funds may be used to construct or rehabilitate rental housing, to rehabilitate owner-occupied housing, and to finance homeownership programs. Section 504 of the Rehabilitation Act of 1973 prohibits discrimination against persons with disabilities in the operation of programs receiving federal financial assistance. HUD regulations implementing Section 504 contain accessibility requirements for new construction and rehabilitation of housing as well as requirements for ensuring that the programs themselves are operated in a manner that is accessible to and usable by persons with disabilities. (See 24 CFR Part 8) For the purposes of this Notice, the references to multi-family housing projects covered by Section 504 only apply to multi-family rental housing projects. The Section 504 regulations define "recipient" as any state or its political subdivision, any instrumentality of a state or its political subdivision, any public or private agency, institution, organization or other entity, or any person to which federal financial assistance is extended for any program or activity directly or through another recipient, including any successor, assignee, or transferee of a recipient, but excluding the ultimate beneficiary of the assistance. (24 CFR §8.3) A family that will receive CDBG or HOME funds for the rehabilitation of an owner- occupied unit is not subject to the requirements of Part 8 since it is the ultimate beneficiary of the funds, and not a recipient of federal financial assistance. New construction HUD regulations implementing Section 504 at 24 CFR §8.22(a) require that new construction of multi-family projects be designed and constructed to be readily accessible to and usable by persons with disabilities. Multi-family housing projects are defined at 24 CFR §8.3 as "projects containing five or more dwelling units". Both the individual units and the common areas in the building must be accessible. For new construction of multi-family rental projects, a minimum of 5 percent of the dwelling units in the project (but not less than one unit) must be accessible to individuals with mobility impairments. An additional 2 percent of the dwelling units (but at a minimum, not less than one unit) must be accessible to individuals with sensory impairments (i.e., hearing or vision impairments), unless HUD prescribes a higher number pursuant to 24 CFR§8.22(c). Rehabilitation Substantial alterations — Section 504 requires that if alterations are undertaken to a housing project that has 15 or more units, and the rehabilitation costs will be 75 percent or more of the replacement cost of the completed facility, then such developments are considered to have undergone "substantial alterations" (24 CFR §8.23 (a)). For substantial alterations of multi- family rental housing, the accessibility requirements contained in 24 CFR §8.22 must be followed —a minimum of 5 percent of the dwelling units in the project (but not less than one unit) must be accessible to individuals with mobility impairments, and an additional 2 percent, at a minimum th the Applicant name and address and the program/activity receiving grant funding.) City of Council Bluffs 209 Pearl Street Council Bluffs, IA 51503 Check here 'if there are workplaces on file that are not identified on the attached sheets. ] hereby certify that all the information stated herein,as well as any information provided in the accompaniment herewith, is true and accurate. Warning: HUD will prosecute false claims and statements. Conviction may result in criminal and/or civil penalties. (18 U.S.C.1001,1010,1012: 31 U.S.C.3729,3802) Name of Authorized Official ;Title Thomas P. Hanafan Mayor Signature Date X June 23, 2006 form H U D50070(3/98) ref.Handbooks 7417.1,7475.13,7485.1&.3 n addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 3 (but not less than one unit) must be accessible to individuals with mobility impairments, and an additional 2 percent, at a minimum (but not less than one unit), must be accessible to individuals with sensory impairments. Other alterations — When other alterations that do not meet the regulatory definition of substantial alterations are undertaken in multi-family rental housing projects of any size, these alterations must, to the maximum extent feasible, make the dwelling units accessible to and usable by individuals with disabilities, until a minimum of 5 percent of the dwelling units (but not less than one unit) are accessible to people with mobility impairments, unless HUD prescribes a higher number pursuant to 24 CFR 8.23(b)(2). If alterations of single elements or spaces of a dwelling unit, when considered together, amount to an alteration of a dwelling unit, then the entire dwelling unit shall be made accessible. For this category of rehabilitation the additional 2 percent of the dwelling units requirement for individuals with sensory impairments does not apply. Alterations to common spaces must, to the maximum extent feasible, make those areas accessible. A recipient is not required to make a dwelling unit, common area, facility or element accessible, if doing so would impose undue financial and administrative burdens on the operation of the multi-family housing project. (24 CFR §8.23(b)) Therefore, recipients are required to provide access in covered alterations up to the point of being infeasible or an undue financial and administrative burden. Accessibility Standards Dwelling units designed and constructed in accordance with the Uniform Federal Accessibility Standards (UFAS) will be deemed to comply with the Section 504 regulation. For copies of UFAS, contact the HUD Distribution Center at 1-800-767-7468; hearing or speech-impaired persons may access this number via TTY by calling the Federal Information Relay Service at l- 800-877-8339. Accessible units must be, to the maximum extent feasible, distributed throughout the projects and sites, and must be available in a sufficient range of sizes and amenities so as not to limit choice. III. FAIR HOUSING ACT Background The Fair Housing Act applies to almost all housing sold or rented in the United States. The Fair Housing Act prohibits discrimination in housing practices on the basis of race, color, religion, sex and national origin. The Fair Housing Act was amended in 1988 to provide protections from discrimination in any aspect of the sale or rental of housing for families with children and persons with disabilities. The Fair Housing Act also establishes requirements for the design and construction of new rental or for sale multi-family housing to ensure a minimum level of accessibility for persons with disabilities. (See 24 CFR 100.200 et. seq.) Section 804(f)(3)(C) of the Fair Housing Act requires that covered multi-family dwelling units designed and constructed for first occupancy after March 13, 1991, be designed and constructed in a manner that: (i) the public and common use portions of such dwellings are readily accessible to and usable by disabled persons; (ii) all the doors designed to allow passage into and within the premises within such dwellings are sufficiently wide to allow passage by disabled persons in wheelchairs; and nd the program/activity receiving grant funding.) City of Council Bluffs 209 Pearl Street Council Bluffs, IA 51503 Check here 'if there are workplaces on file that are not identified on the attached sheets. ] hereby certify that all the information stated herein,as well as any information provided in the accompaniment herewith, is true and accurate. Warning: HUD will prosecute false claims and statements. Conviction may result in criminal and/or civil penalties. (18 U.S.C.1001,1010,1012: 31 U.S.C.3729,3802) Name of Authorized Official ;Title Thomas P. Hanafan Mayor Signature Date X June 23, 2006 form H U D50070(3/98) ref.Handbooks 7417.1,7475.13,7485.1&.3 n addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 4 (iii)all premises within such dwellings contain the following features of adaptive design: (I) an accessible route into and through the dwelling; (II) light switches, electrical outlets, thermostats, and other environmental controls in accessible locations; (III) reinforcements in bathroom walls to allow later installation of grab bars; and (IV) usable kitchens and bathrooms such that an individual in a wheelchair can maneuver about the space. Covered multi-family dwelling units are: • dwelling units in buildings consisting of 4 or more units served by one or more elevators, or • ground floor dwelling units in other buildings with 4 or more units Information about housing designs that provide accessible features in compliance with the Fair Housing Act can be found in the HUD's Fair Housing Accessibility Guidelines, which were published in the Federal Register on March 6, 1991 (56 F.R. 9472) and in HUD's Fair Housing Act Design Manual. These can be obtained from the HUD Distribution Center at 1-800-767- 7468. Deaf, hard of hearing or speech-impaired individuals also may access this number via TTY by calling the Federal Information Relay Service at 1-800-877-8339. The design and construction requirements in the Fair Housing Act apply only to a building designed and constructed for first occupancy after March 13, 1991. The Fair Housing Act regulations define a building for first occupancy as a building that has never been used for any purpose. Thus, the design and construction requirements in the Fair Housing Act will not apply to rehabilitation projects or activities. Illustrations It must be noted that, in many cases, new construction of rental projects funded in the HOME/CDBG programs must meet both the Fair Housing Act and the Section 504 new construction requirements. Where two or more accessibility standards apply, the housing provider is required to follow and apply both standards sot that maximum accessibility is obtained. The following examples illustrate how these requirements will (or will not)apply. • A rental building with an elevator constructed with HOME/CDBG funding would be required to have 5% of its dwelling units meet the Section 504 accessibility requirements at 24 CFR 8.22 and the remaining 95% of the dwelling units would be required to comply with the Fair Housing Act design and construction requirements at 24 CFR 100.205. Note: An additional 2% of the dwelling units are required to be accessible for people with vision and hearing impairments. • A newly constructed 100-unit two-story garden apartment development with no elevator constructed with HOME/CDBG assistance with half(50) of its dwelling units on the ground floor and half (50) on the second floor would be required to have 5 of its ground floor dwelling units built to comply with the Section 504 accessibility requirements at 24 CFR 8.22, and the remaining 45 ground floor dwelling units built to comply with the Fair Housing Act design and construction requirements at 24 CFR 100.205. Note: An additional 2% of the the public and common use portions of such dwellings are readily accessible to and usable by disabled persons; (ii) all the doors designed to allow passage into and within the premises within such dwellings are sufficiently wide to allow passage by disabled persons in wheelchairs; and nd the program/activity receiving grant funding.) City of Council Bluffs 209 Pearl Street Council Bluffs, IA 51503 Check here 'if there are workplaces on file that are not identified on the attached sheets. ] hereby certify that all the information stated herein,as well as any information provided in the accompaniment herewith, is true and accurate. Warning: HUD will prosecute false claims and statements. Conviction may result in criminal and/or civil penalties. (18 U.S.C.1001,1010,1012: 31 U.S.C.3729,3802) Name of Authorized Official ;Title Thomas P. Hanafan Mayor Signature Date X June 23, 2006 form H U D50070(3/98) ref.Handbooks 7417.1,7475.13,7485.1&.3 n addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 5 dwelling units are required to be accessible for people with vision and hearing impairments in accordance with Section 504. • A development consisting entirely of multi-story rental townhouses constructed with federal financial assistance is not a covered multi-family dwelling for purposes of the design and construction requirements of the Fair Housing Act at 24 CFR 100.205 since none of the dwelling units qualify as ground floor units, but would still have to meet the Section 504.5% + 2% accessibility requirements at 24 CFR 8.22. (A townhouse development of 5 or more single-story dwelling units would still have to comply with both Section 504 and the Fair Housing Act design and construction requirements at 24 CFR 100.200 et. seq.) IV. Increasing Program Accessibility HUD's Section 504 regulations require that a recipient of federal financial assistance ensure that its program, when viewed in its entirety, is accessible to persons with disabilities. (24 CFR 8.20) in order to meet this obligation, participants in the HOME/CDBG program must: • To the maximum extent feasible, distribute accessible units throughout the projects and sites, and make them available in a sufficient range of sizes and amenities so as not to limit choice. • Adopt suitable means to assure that information regarding the availability of accessible units reaches eligible individuals with disabilities. They must also take reasonable nondiscriminatory steps to maximize use of such units by eligible individuals. • When an accessible unit becomes vacant, before offering the unit to an individual without a disability, offer the unit: first, to a current occupant of the project requiring the accessibility feature; and second, to an eligible qualified applicant on the waiting list requiring the accessibility features. • When an applicant or tenant requires an accessible feature or policy modification to accommodate a disability, a federally assisted provider must provide such feature or policy modification unless doing so would result in a fundamental alternation in the nature of its program or an undue financial and administrative burden. See 24 CFR 8.4, 8.24 and 8.33 for further requirements and guidance. • Providers are required to ensure that information about their programs is disseminated in a manner that is accessible to persons with disabilities. For example, special communication systems can greatly increase the effectiveness of outreach and ongoing communication (e.g., Telecommunications Devices for the Deaf(TTY), materials on tape or in Braille). • Providers must ensure that activities and meetings are conducted in accessible locations. Participants in the HOME/CDBG program may: • Ask applicants for information that can demonstrate that they can meet the obligations of tenancy including financial information, references, prior tenancy history, etc. However, housing providers may not inquire into the nature and severity of an applicant or tenant's disability, nor may they ask persons with disabilities questions not asked of all applicants, apply different types of screening criteria, or assess an applicant's ability to live independently. ons; (ii) all the doors designed to allow passage into and within the premises within such dwellings are sufficiently wide to allow passage by disabled persons in wheelchairs; and nd the program/activity receiving grant funding.) City of Council Bluffs 209 Pearl Street Council Bluffs, IA 51503 Check here 'if there are workplaces on file that are not identified on the attached sheets. ] hereby certify that all the information stated herein,as well as any information provided in the accompaniment herewith, is true and accurate. Warning: HUD will prosecute false claims and statements. Conviction may result in criminal and/or civil penalties. (18 U.S.C.1001,1010,1012: 31 U.S.C.3729,3802) Name of Authorized Official ;Title Thomas P. Hanafan Mayor Signature Date X June 23, 2006 form H U D50070(3/98) ref.Handbooks 7417.1,7475.13,7485.1&.3 n addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 • • Ask if the applicant qualifies for a housing program or unit designed for persons with a disability,when the housing program or unit is designed for such persons. • Consider including a lease provision that requires a non-disabled family occupying an accessible unit to move if a family with a disability needing that size unit applies and there is an appropriately sized non-accessible unit available for the relocating family. V. Self-Evaluation The Section 504 regulations required recipients of federal financial assistance to conduct a self- evaluation of their policies and practices to determine if they were consistent with the law's requirements. This self-evaluation was to have been completed no later than July 11, 1989. The regulatory deadlines are long past. However, self-evaluation continues to be an excellent management tool for ensuring that a recipient's current policies and procedures comply with the requirements of Section 504. Involving persons with disabilities in the self-evaluation process is very beneficial. This will assure the most meaningful result for both the recipient and for persons with disabilities who participate in the recipients programs and activities. It is important to involve persons and/or organizations representing persons with disabilities, and agencies or other experts who work regularly with accessibility standards. Important steps in conducting a self-evaluation and implementing its results include the following: • Evaluate current policies and practices and analyze them to determine if they adversely affect the full participation of individuals with disabilities in its programs, activities and services. Be mindful of the fact that a policy or practice may appear neutral on its face, but may have a discriminatory effect on individuals with disabilities. • Modify any policies and practices that are not or may not be in compliance with Section 504 regulations. • Take appropriate corrective steps to remedy those policies and practices, which either are discriminatory or have a discriminatory effect. Develop policies and procedures by which persons with disabilities may request a modification of a physical barrier or a rule or practice that has the effect of limiting or excluding a person with a disability from the benefits of the program. • Document the self-evaluation process and activities. The Department recommends that all recipients keep the self-evaluation file for at least three years, including records of the individuals and organizations consulted, areas examined and problems identified, and document modifications and remedial steps. The Department also recommends that recipients periodically update the self-evaluation, particularly, for example, if there have been changes in recipient owned housing stock, such as demolition of housing units and construction and/or alteration of housing, or changes in the programs and services of the agency. VI. VISITABILITY bility, nor may they ask persons with disabilities questions not asked of all applicants, apply different types of screening criteria, or assess an applicant's ability to live independently. ons; (ii) all the doors designed to allow passage into and within the premises within such dwellings are sufficiently wide to allow passage by disabled persons in wheelchairs; and nd the program/activity receiving grant funding.) City of Council Bluffs 209 Pearl Street Council Bluffs, IA 51503 Check here 'if there are workplaces on file that are not identified on the attached sheets. ] hereby certify that all the information stated herein,as well as any information provided in the accompaniment herewith, is true and accurate. Warning: HUD will prosecute false claims and statements. Conviction may result in criminal and/or civil penalties. (18 U.S.C.1001,1010,1012: 31 U.S.C.3729,3802) Name of Authorized Official ;Title Thomas P. Hanafan Mayor Signature Date X June 23, 2006 form H U D50070(3/98) ref.Handbooks 7417.1,7475.13,7485.1&.3 n addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 7 Visibility Concept Although not a requirement, it is recommended that all design, construction and alterations incorporate, whenever practical, the concept of visibility in addition to the requirements under Section 504 and the Fair Housing Act. Visibility is a design concept, which for very little or no additional cost, enables persons with disabilities to visit relatives, friends and neighbors in their homes within a community. Design Considerations Visitability design incorporates the following in all construction or alterations, in addition to the applicable requirements of Section 504 and the Fair Housing Act, whenever practical and possible for as many units as possible within a development: • Provide a 32"clear opening in all bathroom and interior doorways • Provide at least one accessible means of egress/ingress for each unit Benefits Visitability also expands the availability of housing options for individuals who may not require full accessibility. It will assist project owners in making reasonable accommodations and reduce, in some cases, the need for structural modifications or transfers when individuals become disabled in place. Visitability will also improve the marketability of units. HUD Technical Assistance Concerning These Requirements Further information concerning compliance with any of these requirements may be obtained through the HUD web page (http://www.hud.gov/fhe/504/sect504.html). Additional assistance and information may be obtained by contacting the local Department of Housing and Urban Development Offices of Community Planning and Development (CPD) and Fair Housing and Equal Opportunity(FHEO) listed below: CPD FHEO Boston,MA 617-565-5345 617-565-5310 Hartford,CT 806-240-4800 x 3059 860-240-4800 New York,NY 212-264-0771 x 3422 212-264-1290 Buffalo,NY 716-551-5755 x 5800 716-551-5755 Newark,NJ 973-622-7900 x 3300 973-622-7900 Philadelphia,PA 215-656-0624 x 3201 215-656-0661 Pittsburgh,PA 412-644-2999 412-355-3167 Baltimore,MD 410-962-2520 x 3071 410-962-2520 Richmond,VA 804-278-4503 x 3229 804-278-4504 Washington,DC 202-275-0994 x 3163 202-275-0848 Atlanta, GA 404-331-5001 x 2449 404-331-1798 Birmingham,AL 205-290-7630 x 1027 205-290-7630 South Florida 305-536-4431 x 2223 305-536-4479 Jacksonville,FL 904-232-1777 x 2136 904-232-1777 San Juan,PR 787-766-5400 x 2005 787-766-5400 Louisville,KY 502-582-6163 x 214 502-582-6163 x 230 The Department also recommends that recipients periodically update the self-evaluation, particularly, for example, if there have been changes in recipient owned housing stock, such as demolition of housing units and construction and/or alteration of housing, or changes in the programs and services of the agency. VI. VISITABILITY bility, nor may they ask persons with disabilities questions not asked of all applicants, apply different types of screening criteria, or assess an applicant's ability to live independently. ons; (ii) all the doors designed to allow passage into and within the premises within such dwellings are sufficiently wide to allow passage by disabled persons in wheelchairs; and nd the program/activity receiving grant funding.) City of Council Bluffs 209 Pearl Street Council Bluffs, IA 51503 Check here 'if there are workplaces on file that are not identified on the attached sheets. ] hereby certify that all the information stated herein,as well as any information provided in the accompaniment herewith, is true and accurate. Warning: HUD will prosecute false claims and statements. Conviction may result in criminal and/or civil penalties. (18 U.S.C.1001,1010,1012: 31 U.S.C.3729,3802) Name of Authorized Official ;Title Thomas P. Hanafan Mayor Signature Date X June 23, 2006 form H U D50070(3/98) ref.Handbooks 7417.1,7475.13,7485.1&.3 n addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 8 Jackson,MS 601-965-4700 x 3140 601-965-4700 x 2435 Knoxville,TN 865-545-4391 x 121 865-545-4379 Greensboro,NC 336-547-4005 336-547-4050 Columbia, SC 803-765-5564 803-765-5936 Chicago,IL 312-353-1696 x 2702 312-353-7776 Minneapolis, MN 612-370-3019 x 2107 612-370-3185 Detroit,MI 313-226-7908 x 8055 313-226-6280 Milwaukee,WI 414-297-3214 x 8100 414-297-3214 Columbus,OH 614-469-5737 x 8240 614-469-5737 x 8170 Indianapolis,IN 317-226-6303 x 6790 317-226-7654 Little Rock,AR 501-324-6375 501-324-6296 Oklahoma City, OK 405-553-7569 405-553-7426 Kansas City,KS 913-551-5485 913-551-5834 Omaha,NE 402-492-3181 402-492-3109 St. Louis,MO 314-539-6524 314-539-6327 New Orleans,LA 504-589-7212 x 3047 504-589-7219 Fort Worth,TX 817-978-5934 x 5951 817-978-5870 San Antonio,TX 210-475-6820 x 2293 210-475-6885 Albuquerque,NM 505-346-7271 x 7361 505-346-7327 Denver,CO 303-672-5414 x 1326 303-672-5437 San Francisco,CA 415-436-6597 415-436-6569 Los Angeles, CA 213-894-8000 x 3300 213-894-8000 x 3400 Honolulu,HI 808-522-8180 x 264 808-522-8180 Phoenix,AZ 602-379-4754 602-379-6699 x 5261 Seattle,WA 206-220-5150 x 3606 206-220-5170 Portland, OR 503-326-7018 503-326-3349 Manchester,NH 603-666-7640 x 7633 Anchorage,AK 907-271-3669 Houston,TX 713-313-2274 Offices of Community Planning and Development (CPD) and Fair Housing and Equal Opportunity(FHEO) listed below: CPD FHEO Boston,MA 617-565-5345 617-565-5310 Hartford,CT 806-240-4800 x 3059 860-240-4800 New York,NY 212-264-0771 x 3422 212-264-1290 Buffalo,NY 716-551-5755 x 5800 716-551-5755 Newark,NJ 973-622-7900 x 3300 973-622-7900 Philadelphia,PA 215-656-0624 x 3201 215-656-0661 Pittsburgh,PA 412-644-2999 412-355-3167 Baltimore,MD 410-962-2520 x 3071 410-962-2520 Richmond,VA 804-278-4503 x 3229 804-278-4504 Washington,DC 202-275-0994 x 3163 202-275-0848 Atlanta, GA 404-331-5001 x 2449 404-331-1798 Birmingham,AL 205-290-7630 x 1027 205-290-7630 South Florida 305-536-4431 x 2223 305-536-4479 Jacksonville,FL 904-232-1777 x 2136 904-232-1777 San Juan,PR 787-766-5400 x 2005 787-766-5400 Louisville,KY 502-582-6163 x 214 502-582-6163 x 230 The Department also recommends that recipients periodically update the self-evaluation, particularly, for example, if there have been changes in recipient owned housing stock, such as demolition of housing units and construction and/or alteration of housing, or changes in the programs and services of the agency. VI. VISITABILITY bility, nor may they ask persons with disabilities questions not asked of all applicants, apply different types of screening criteria, or assess an applicant's ability to live independently. ons; (ii) all the doors designed to allow passage into and within the premises within such dwellings are sufficiently wide to allow passage by disabled persons in wheelchairs; and nd the program/activity receiving grant funding.) City of Council Bluffs 209 Pearl Street Council Bluffs, IA 51503 Check here 'if there are workplaces on file that are not identified on the attached sheets. ] hereby certify that all the information stated herein,as well as any information provided in the accompaniment herewith, is true and accurate. Warning: HUD will prosecute false claims and statements. Conviction may result in criminal and/or civil penalties. (18 U.S.C.1001,1010,1012: 31 U.S.C.3729,3802) Name of Authorized Official ;Title Thomas P. Hanafan Mayor Signature Date X June 23, 2006 form H U D50070(3/98) ref.Handbooks 7417.1,7475.13,7485.1&.3 n addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 Attachment e t 5 U.S. Department of Housing and Urban Development COMMUNITY PLANNING AND DEVELOPMENT Special Attention of: Notice CPD-02-03 All Secretary's Representatives All State/Area Coordinators Issued: May 2, 2002 All CPD Office Directors Expires: December 26, 2003 All HOME Coordinators All HOME Participating Jurisdictions All CDBG Grantees All FHEO Field Directors SUBJECT: Accessibility Notice: Section 504 of the Rehabilitation Act of 1973 and The Fair Housing Act and their applicability to housing programs funded by the HOME Investment Partnerships Program and the Community Development Block Grant Program This Notice extends the provisions of Notice CPD 00-09 (originally issued December 26, 2000) through December 26, 2003) Distribution: W-3-1 6 ND ATTACHMENT P:\PLN3\13639pjm.doc • Attachment U.S. Department of Housing and Urban Development COMMUNITY PLANNING AND DEVELOPMENT Special Attention of: Notice CPD 00-09 All Secretary's Representatives All State/Area Coordinators Issued: December 26, 2000 All CPD Office Directors Expires: December 26, 2001 All HOME Coordinators All HOME Participating Jurisdictions All CDBG Grantees All FHEO Field Directors SUBJECT: Accessibility Notice: Section 504 of the Rehabilitation Act of 1973 and The Fair Housing Act and their applicability to housing programs funded by the HOME Investment Partnership Program and the Community Development Block Grant Program I. Purpose The purpose of this Notice is to remind recipients of federal funds in the HOME Investment Partnerships Program (HOME) or the Community Development Block Grant (CDBG) Program of their obligation to comply with Section 504 of the Rehabilitation Act of 1973, the Fair Housing Act, and HUD's implementing regulations (24 CFR Parts 8 and 100, respectively), which prohibit discrimination based on disability and establish requirements for program accessibility and physical accessibility in connection with housing programs. This Notice describes key compliance elements for housing assisted under the HOME and CDBG programs. However, recipients should review the specific provisions of the Fair Housing Act, Section 504 and their respective regulations in order to assure that their programs are administered in full compliance. Note with respect to Section 504, this Notice does not address the applicability of Section 504's physical accessibility requirements to homeownership programs financed with HOME/CDBG assistance. The Notice also recommends that recipients conduct updated self evaluations as a useful tool for enhancing efforts to comply with accessibility requirements in HOME/CDBG programs, as well as to document those efforts. Applicability This Notice applies to new construction and rehabilitation of housing under the HOME and CDBG programs. Each primary recipient of federal funds from the HOME or CDBG program is responsible for providing this notice to each organization or other entity participating in the construction or rehabilitation of projects receiving such funding and for establishing policies and practices that it will use to monitor compliance of all covered programs, activities or work performed by subrecipients, contractors, subcontractors,management agents, etc. Distribution: W-3-1 305-536-4431 x 2223 305-536-4479 Jacksonville,FL 904-232-1777 x 2136 904-232-1777 San Juan,PR 787-766-5400 x 2005 787-766-5400 Louisville,KY 502-582-6163 x 214 502-582-6163 x 230 The Department also recommends that recipients periodically update the self-evaluation, particularly, for example, if there have been changes in recipient owned housing stock, such as demolition of housing units and construction and/or alteration of housing, or changes in the programs and services of the agency. VI. VISITABILITY bility, nor may they ask persons with disabilities questions not asked of all applicants, apply different types of screening criteria, or assess an applicant's ability to live independently. ons; (ii) all the doors designed to allow passage into and within the premises within such dwellings are sufficiently wide to allow passage by disabled persons in wheelchairs; and nd the program/activity receiving grant funding.) City of Council Bluffs 209 Pearl Street Council Bluffs, IA 51503 Check here 'if there are workplaces on file that are not identified on the attached sheets. ] hereby certify that all the information stated herein,as well as any information provided in the accompaniment herewith, is true and accurate. Warning: HUD will prosecute false claims and statements. Conviction may result in criminal and/or civil penalties. (18 U.S.C.1001,1010,1012: 31 U.S.C.3729,3802) Name of Authorized Official ;Title Thomas P. Hanafan Mayor Signature Date X June 23, 2006 form H U D50070(3/98) ref.Handbooks 7417.1,7475.13,7485.1&.3 n addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 2 II. SECTION 504 OF THE REHABILITATION ACT OF 1973 Background The HOME and CDBG programs, through state and local government provide assistance that may be used for the construction or rehabilitation of affordable housing. HOME and CDBG funds may be used to construct or rehabilitate rental housing, to rehabilitate owner-occupied housing, and to finance homeownership programs. Section 504 of the Rehabilitation Act of 1973 prohibits discrimination against persons with disabilities in the operation of programs receiving federal financial assistance. HUD regulations implementing Section 504 contain accessibility requirements for new construction and rehabilitation of housing, as well as requirements for ensuring that the programs themselves are operating in a manner that is accessible to and usable by persons with disabilities. (See 24 CFR Part 8) For the purposes of this Notice, the references to multi-family housing projects covered by Section 504 only apply to multi-family rental housing projects. The Section 504 regulations define "recipient" as any state or its political subdivision, any instrumentality of a state or its political subdivision, any public or private agency, institution, organization or other entity, or any person to which federal financial assistance is extended for any program or activity directly or through another recipient, including any successor, assignee, or transferee of a recipient, but excluding the ultimate beneficiary of the assistance. (24 CFR §8.3) A family that will receive CDBG or HOME funds for the rehabilitation of an owner-occupied unit is not subject to the requirements of Part 8 since it is the ultimate beneficiary of the funds, and not a recipient of federal financial assistance. New construction HUD regulations implementing Section 504 at 24 CFR §8.22(a) require that new construction of multi-family projects be designed and constructed to be readily accessible to and usable by persons with disabilities. Multi-family housing projects are defined at 24 CFR §8.3 as "projects containing five or more dwelling units". Both the individual units and the common areas in the building must be accessible. For new construction of multi-family rental projects, a minimum of 5 percent of the dwelling units in the project(but not less than one unit) must be accessible to individuals with mobility impairments. An additional 2 percent of the dwelling units (but at a minimum, not less than one unit) must be accessible to individuals with sensory impairments (i.e., hearing or vision impairments), unless HUD prescribes a higher number pursuant to 24 CFR§8.22(c). Rehabilitation Substantial alterations — Section 504 requires that if alterations are undertaken to a housing project that has 15 or more units, and the rehabilitation costs will be 75 percent or more of the replacement cost of the completed facility, then such developments are considered to have undergone "substantial alterations" (24 CFR §8.23(a)). For substantial alterations of multi-family rental housing, the accessibility requirements contained in 24 CFR §8.22 must be followed— a minimum of 5 percent of the dwelling units in the project (but not less than one unit) must be accessible to individuals with mobility impairments, and an additional 2 percent, at a minimum (but not less than one unit), must be accessible to individuals with sensory impairments. passage into and within the premises within such dwellings are sufficiently wide to allow passage by disabled persons in wheelchairs; and nd the program/activity receiving grant funding.) City of Council Bluffs 209 Pearl Street Council Bluffs, IA 51503 Check here 'if there are workplaces on file that are not identified on the attached sheets. ] hereby certify that all the information stated herein,as well as any information provided in the accompaniment herewith, is true and accurate. Warning: HUD will prosecute false claims and statements. Conviction may result in criminal and/or civil penalties. (18 U.S.C.1001,1010,1012: 31 U.S.C.3729,3802) Name of Authorized Official ;Title Thomas P. Hanafan Mayor Signature Date X June 23, 2006 form H U D50070(3/98) ref.Handbooks 7417.1,7475.13,7485.1&.3 n addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 3 Other alterations — When other alterations that do not meet the regulatory definition of substantial alterations are undertaken in multi-family rental housing projects of any size, these alterations must, to the maximum extent feasible, make the dwelling units accessible to and usable by individuals with disabilities, until a minimum of 5 percent of the dwelling units (but not less than one unit) are accessible to people with mobility impairments, unless HUD prescribes a higher number pursuant to 24 CFR 8.23(b)(2). If alterations of single elements or spaces of a dwelling unit, when considered together, amount to an alteration of a dwelling unit, then the entire dwelling unit shall be made accessible. For this category of rehabilitation, the additional 2 percent of the dwelling units requirement for individuals with sensory impairments does not apply. Alterations to common spaces must, to the maximum extent feasible, make those areas accessible. A recipient is not required to make a dwelling unit, common area, facility or element accessible, if doing so would impose undue financial and administrative burdens on the operation of the multi-family housing project. (24 CFR §8.23(b)) Therefore, recipients are required to provide access in covered alterations up to the point of being infeasible or an undue financial and administrative burden. Accessibility Standards Dwelling units designed and constructed in accordance with the Uniform Accessibility Standards (UFAS) will be deemed to comply with the Section 504 regulation. For copies of UFAS, contact the HUD Distribution Center at 1-800-767-7468; hearing or speech-impaired persons may access this number via TTY by calling the Federal Information Relay Service at 1-800-877-8339. Accessible units must be, to the maximum extent feasible, distributed throughout the projects and sites, and must be available in a sufficient range of sizes and amenities so as not to limit choice. III. FAIR HOUSING ACT Background The Fair Housing Act applies to almost all housing sold or rented in the United States. The Fair Housing Act prohibits discrimination in housing practices on the basis of race, color, religion, sex and national origin. The Fair Housing Act was amended in 1988 to provide protection from discrimination in any aspect of the sale or rental of housing for families with children and persons with disabilities. The Fair Housing Act also establishes requirements for the design and construction of new rental or for sale multi-family housing to ensure a minimum level of accessibility for persons with disabilities. (See 24 CFR 100.200 et. seq.) Section 804 (f)(3)(C) of the Fair Housing Act requires that covered multi-family dwelling units designed and constructed for first occupancy after March 13, 1991, be designed and constructed in a manner that: (i) the public and common use portions of such dwellings are readily accessible to and usable by disabled persons; (ii) all the doors designed to allow passage into and within the premises within such dwellings are sufficiently wide to allow passage by disabled persons in wheelchairs; and (iii) all premises within such dwellings contain the following features of adaptive design: (I) an accessible route into and through the dwelling; (II) light switches, electrical outlets, thermostats, and other environmental controls in accessible locations; (III) reinforcements in bathroom walls to allow later installations of grab bars; and led persons in wheelchairs; and nd the program/activity receiving grant funding.) City of Council Bluffs 209 Pearl Street Council Bluffs, IA 51503 Check here 'if there are workplaces on file that are not identified on the attached sheets. ] hereby certify that all the information stated herein,as well as any information provided in the accompaniment herewith, is true and accurate. Warning: HUD will prosecute false claims and statements. Conviction may result in criminal and/or civil penalties. (18 U.S.C.1001,1010,1012: 31 U.S.C.3729,3802) Name of Authorized Official ;Title Thomas P. Hanafan Mayor Signature Date X June 23, 2006 form H U D50070(3/98) ref.Handbooks 7417.1,7475.13,7485.1&.3 n addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 4 (IV) usable kitchens and bathrooms such that an individual in a wheelchair can maneuver about the space. Covered multi-family dwelling units are: • dwelling units in buildings consisting of 4 or more units served by one or more elevators, or • ground floor dwelling units in other buildings with 4 or more units. Information about housing designs that provide accessible features in compliance with the Fair Housing Act can be found in the HUD's Fair Housing Accessibility Guidelines, which were published in the Federal Register on March 6, 1991 (56 F.R. 9472) and in HUD's Fair Housing Act Design Manual. These can be obtained from the HUD Distribution Center at 1- 800-767-7468. Dear, hard of hearing or speech-impaired persons may access this number via TTY by calling the Federal Information Relay Service at 1-800-877-8339. The design and construction requirements in the Fair Housing Act apply only to a building designed and constructed for first occupancy after March 13, 1991. The Fair Housing Act regulations define a building for first occupancy as a building that has never been used for any purpose. Thus, the design and construction requirements in the Fair Housing Act will not apply to rehabilitation projects or activities. Illustrations It must be noted that, in many cases, new construction of rental projects funded in the HOME/CDBG Programs must meet both the Fair Housing Act and the Section 504 new construction requirements. Where two or more accessibility standards apply, the housing provider is required to follow and apply both standards, so that maximum accessibility is obtained. The following examples illustrate how these requirements will (or will not)apply. • A rental building with an elevator constructed with HOME/CDBG funding would be required to have 5% of its dwelling units meet the Section 504 accessibility requirements at 24 CFR 8.22 and the remaining 95% of the dwelling units would be required to comply with the Fair Housing Act design and construction requirements at 24 CFR 100.205. NOTE: An additional 2% of the dwelling units are required to be accessible for people with vision and hearing impairments. • A newly constructed 100 unit two-story garden apartment development with no elevator constructed with HOME/CDBG assistance with half (50) of its dwelling units on the ground floor and half(50) of the second floor would be required to have 5 of its ground floor dwelling units built to comply with the Section 504 accessibility requirements at 24 CFR 8.22, and the remaining 45 ground floor dwelling units built to comply with the Fair Housing Act design and construction requirements at 24 CFR 100.205. NOTE: An additional 2% of the dwelling units are required to be accessible for people with vision and hearing impairments in accordance with Section 504. assage into and within the premises within such dwellings are sufficiently wide to allow passage by disabled persons in wheelchairs; and (iii) all premises within such dwellings contain the following features of adaptive design: (I) an accessible route into and through the dwelling; (II) light switches, electrical outlets, thermostats, and other environmental controls in accessible locations; (III) reinforcements in bathroom walls to allow later installations of grab bars; and led persons in wheelchairs; and nd the program/activity receiving grant funding.) City of Council Bluffs 209 Pearl Street Council Bluffs, IA 51503 Check here 'if there are workplaces on file that are not identified on the attached sheets. ] hereby certify that all the information stated herein,as well as any information provided in the accompaniment herewith, is true and accurate. Warning: HUD will prosecute false claims and statements. Conviction may result in criminal and/or civil penalties. (18 U.S.C.1001,1010,1012: 31 U.S.C.3729,3802) Name of Authorized Official ;Title Thomas P. Hanafan Mayor Signature Date X June 23, 2006 form H U D50070(3/98) ref.Handbooks 7417.1,7475.13,7485.1&.3 n addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 5 • A development consisting entirely of multi-story rental townhouses constructed with federal financial assistance is not a covered multi-family dwelling for purposes of the design and construction requirements of the Fair Housing Act at 24 CFR 100.205 since none of the dwelling units qualify as ground floor units, but would still have to meet the Section 504 5% + 2% accessibility requirements at 24 CFR 8.22. (A townhouse development of 5 or more single-story dwelling units would still have to comply with both Section 504 and the Fair Housing Act design and construction requirements at 24 CFR 100.200 et. seq.) IV. Increasing Program Accessibility HUD's Section 504 regulations require that a recipient of federal financial assistance ensure that its program, when viewed in its entirety, is accessible to persons with disabilities. (24 CFR 8.20) In order to meet this obligation, participants in the HOME/CDBG program must: • to the maximum extent feasible, distribute accessible units throughout the projects and sites, and make them available in a sufficient range of sizes and amenities so as not to limit choice. • adopt suitable means to assure that information regarding the availability of accessible units reaches eligible individuals with disabilities. They must also take reasonable nondiscriminatory steps to maximize use of such units by eligible individuals. • when an accessible unit becomes vacant, before offering the unit to an individual without a disability, offer the unit: first to a current occupant of the project requiring the accessibility feature; and second, to an eligible qualified applicant on the waiting list requiring the accessibility features. • when an applicant or tenant requires an accessible feature or policy modification to accommodate a disability, a federally assisted provider must provide such feature or policy modification unless doing so would result in a fundamental alternation in the nature of its program or an undue financial and administrative burden. See 24 CFR 8.4, 8.24, and 8.33 for further requirements and guidance. • providers are required to ensure that information about their programs is disseminated in a manner that is accessible to persons with disabilities. For example, special communication systems can greatly increase the effectiveness of outreach and ongoing communication (e.g., Telecommunications Devices for the Deaf (TTY), materials on tape or in Braille). • providers must ensure that activities and meetings are conducted in accessible locations. loor dwelling units built to comply with the Fair Housing Act design and construction requirements at 24 CFR 100.205. NOTE: An additional 2% of the dwelling units are required to be accessible for people with vision and hearing impairments in accordance with Section 504. assage into and within the premises within such dwellings are sufficiently wide to allow passage by disabled persons in wheelchairs; and (iii) all premises within such dwellings contain the following features of adaptive design: (I) an accessible route into and through the dwelling; (II) light switches, electrical outlets, thermostats, and other environmental controls in accessible locations; (III) reinforcements in bathroom walls to allow later installations of grab bars; and led persons in wheelchairs; and nd the program/activity receiving grant funding.) City of Council Bluffs 209 Pearl Street Council Bluffs, IA 51503 Check here 'if there are workplaces on file that are not identified on the attached sheets. ] hereby certify that all the information stated herein,as well as any information provided in the accompaniment herewith, is true and accurate. Warning: HUD will prosecute false claims and statements. Conviction may result in criminal and/or civil penalties. (18 U.S.C.1001,1010,1012: 31 U.S.C.3729,3802) Name of Authorized Official ;Title Thomas P. Hanafan Mayor Signature Date X June 23, 2006 form H U D50070(3/98) ref.Handbooks 7417.1,7475.13,7485.1&.3 n addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 6 Participants in the HOME/CDBG program may: • ask applicants for information that can demonstrate that they can meet the obligations of tenancy including financial information, references, prior tenancy history, etc. However, housing providers may not inquire into the nature and severity of an applicant or tenant's disability, nor may they ask persons with disabilities questions not asked of all applicants, apply different types of screening criteria, or assess an applicant's ability to live independently. • ask if the applicant qualifies for a housing program or unit designed for persons with a disability, when the housing program or unit is designed for such persons. • consider including a lease provision that requires a non-disabled family occupying an accessible unit to move if a family with a disability needing that size unit applies and there is an appropriately sized non-accessible unit available for the relocating family. V. Self-Evaluation The Section 504 regulations required recipients of federal financial assistance to conduct a self-evaluation of their policies and practices to determine if they were consistent with the law's requirements. This self-evaluation was to have been completed no later than July 11, 1989. The regulatory deadlines are long past. However, self-evaluation continues to be an excellent management tool for ensuring that a recipient's current policies and procedures comply with the requirements of Section 504. Involving persons with disabilities in the self-evaluation process is very beneficial. This will assure the most meaningful result for both the recipient and for persons with disabilities who participate in the recipients programs and activities. It is important to involve persons and/or organizations representing persons with disabilities, and agencies or other experts who work regularly with accessibility standards. Important steps in conducting a self-evaluation and implementing its results include the following: • evaluate current policies and practices and analyze them to determine if they adversely affect the full participation of individuals with disabilities in its programs, activities and services. Be mindful of the fact that a policy or practice may appear neutral on its face, but may have a discriminatory effect on individuals with disabilities. • modify any policies and practices that are not or may not be in compliance with Section 504 regulations. • take appropriate corrective steps to remedy those policies and practices which either are discriminatory or have a discriminatory effect. Develop policies and procedures by which persons with disabilities may request a modification of a physical barrier or a rule or practice that has the effect of limiting or excluding a person with a disability from the benefits of the program. ion and hearing impairments in accordance with Section 504. assage into and within the premises within such dwellings are sufficiently wide to allow passage by disabled persons in wheelchairs; and (iii) all premises within such dwellings contain the following features of adaptive design: (I) an accessible route into and through the dwelling; (II) light switches, electrical outlets, thermostats, and other environmental controls in accessible locations; (III) reinforcements in bathroom walls to allow later installations of grab bars; and led persons in wheelchairs; and nd the program/activity receiving grant funding.) City of Council Bluffs 209 Pearl Street Council Bluffs, IA 51503 Check here 'if there are workplaces on file that are not identified on the attached sheets. ] hereby certify that all the information stated herein,as well as any information provided in the accompaniment herewith, is true and accurate. Warning: HUD will prosecute false claims and statements. Conviction may result in criminal and/or civil penalties. (18 U.S.C.1001,1010,1012: 31 U.S.C.3729,3802) Name of Authorized Official ;Title Thomas P. Hanafan Mayor Signature Date X June 23, 2006 form H U D50070(3/98) ref.Handbooks 7417.1,7475.13,7485.1&.3 n addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 7 • document the self-evaluation process and activities. The Department recommends that all recipients keep the self-evaluation file for at least three years, including records of the individuals and organizations consulted, areas examined and problems identified, and document modifications and remedial steps. The Department also recommends that recipients periodically update the self-evaluation, particularly, for example, if there have been changes in recipient owned housing stock, such as demolition of housing units and construction and/or alteration of housing or changes in the programs and services of the agency. VI.Visitability Visitability Concept Although not a requirement, it is recommended that all design, construction and alterations incorporate, whenever practical, the concept of visitability in addition to the requirements under Section 504 and the Fair Housing Act. Visitability is a design concept, which for very little or no additional cost, enables persons with disabilities to visit relatives, friends and neighbors in their homes within a community. Design Considerations Visitability design incorporates the following in all construction or alterations, in addition to the applicable requirements of Section 504 and the Air Housing Act, whenever practical and possible for as many units as possible within a development: • Provide a 32" clear opening in all bathroom and interior doorways • Provide at least one accessible means of egress/ingress for each unit. Benefits Visitability also expands the availability of housing options for individuals who may not require full accessibility. It will assist project owners in making reasonable accommodations and reduce, in some cases, the need for structural modifications or transfers when individuals become disabled in place. Visitability will also improve the marketability of units. HUD Technical Assistance Concerning these Requirements Further information concerning compliance with any of these requirements may be obtained through the HUD web page (http://www.hud.gov/fhe/504/sect504.html). Additional assistance and information may be obtained by contacting the local Department of Housing and Urban Development Offices of Community Planning and Development (CPD) and Fair Housing and Equal Opportunity (FHEO) listed below: any policies and practices that are not or may not be in compliance with Section 504 regulations. • take appropriate corrective steps to remedy those policies and practices which either are discriminatory or have a discriminatory effect. Develop policies and procedures by which persons with disabilities may request a modification of a physical barrier or a rule or practice that has the effect of limiting or excluding a person with a disability from the benefits of the program. ion and hearing impairments in accordance with Section 504. assage into and within the premises within such dwellings are sufficiently wide to allow passage by disabled persons in wheelchairs; and (iii) all premises within such dwellings contain the following features of adaptive design: (I) an accessible route into and through the dwelling; (II) light switches, electrical outlets, thermostats, and other environmental controls in accessible locations; (III) reinforcements in bathroom walls to allow later installations of grab bars; and led persons in wheelchairs; and nd the program/activity receiving grant funding.) City of Council Bluffs 209 Pearl Street Council Bluffs, IA 51503 Check here 'if there are workplaces on file that are not identified on the attached sheets. ] hereby certify that all the information stated herein,as well as any information provided in the accompaniment herewith, is true and accurate. Warning: HUD will prosecute false claims and statements. Conviction may result in criminal and/or civil penalties. (18 U.S.C.1001,1010,1012: 31 U.S.C.3729,3802) Name of Authorized Official ;Title Thomas P. Hanafan Mayor Signature Date X June 23, 2006 form H U D50070(3/98) ref.Handbooks 7417.1,7475.13,7485.1&.3 n addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 • 8 CPD FHEO Boston, MA 617 565-5345 617 565-5310 Hartford, CT 806 240-4800 x3059 860 240-4800 New York, NY 212 264-0771 x 3422 212 264-1290 Buffalo, NY 716 551-5755 x 5800 716 551-5755 Newark, NJ 973 622-7900 x 3300 973-622-7900 Philadelphia, PA 215 656-0624 x 3201 215 656-0661 Pittsburgh, PA 412 644-2999 412 355-3167 Baltimore, MD 410 962-2520 x 3071 410 962-2520 Richmond, VA 804 278-4503 x 3229 804 278-4504 Washington, DC 202 275-0994 x 3163 202 275-0848 Atlanta, GA 404 331-5001 x 2449 404 331-1798 Birmingham,AL 205 290-7630 x 1027 205 290-7630 South Florida 305 536-4431 x 2223 305 536-4479 Jacksonville, FL 904 232-1777 x 2136 904-232-1777 San Juan, PR 787 766-5400 x 2005 787 766-5400 Louisville, KY 502 582-6163 x 214 502 582-6163 x 230 Jackson, MS 601 965-4700 x 3140 601 965-4700 x 2435 Knoxville, TN 865 545-4391 x 121 865-545-4379 Greensboro, NC 336 547-4005 336-547-4050 Columbia, SC 8030765-5564 803-765-5936 Chicago, IL 312-353-1696 x 2702 312-353-7776 Minneapolis, MN 612 370-3019 x 2107 612 370-3185 Detroit, MI 313 226-7908 x 8055 313 226-6280 Milwaukee, WI 414 297-3214 x 8100 414 297-3214 Columbus, OH 614 469-5737 x 8240 614 469-5737 x 8170 Indianapolis, IN 317 226-6303 x 6790 317 226-7654 Little Rock, AR 501 324-6375 501 324-6296 Oklahoma City, OK 405 553-7569 405 553-7426 Kansas City, KS 913 551-5485 913-551-5834 Omaha, NE 402 492-3181 402 492-3109 St. Louis, MO 314 539-6524 314 539-6327 New Orleans,LA 504 589-7212 x 3047 504 589-7219 Fort Worth, TX 817 978-5934 x 5951 817-978-5870 San Antonio, TX 210 475-6820 x 2293 210 475-6885 Albuquerque, NM 505 346-7271 x 7361 505 346-7327 Denver, CO 303 672-5414 x 1326 303 672-5437 San Francisco, CA 415 436-6597 415 436-6569 Los Angeles, CA 213 894-8000 x 3300 213 894-8000 x 3400 Honolulu, HI 808 522-8180 x 264 808 522-8180 Phoenix, AZ 602 379-4754 602 379-6699 x 5261 Seattle, WA 206 220-5150 x 3606 206 220-5170 Portland, OR 503 326-7018 503 326-3349 Manchester, NH 603 666-7640 x 7633 Anchorage, AK 907 271-3669 Houston, TX 713 313-2274 ective steps to remedy those policies and practices which either are discriminatory or have a discriminatory effect. Develop policies and procedures by which persons with disabilities may request a modification of a physical barrier or a rule or practice that has the effect of limiting or excluding a person with a disability from the benefits of the program. ion and hearing impairments in accordance with Section 504. assage into and within the premises within such dwellings are sufficiently wide to allow passage by disabled persons in wheelchairs; and (iii) all premises within such dwellings contain the following features of adaptive design: (I) an accessible route into and through the dwelling; (II) light switches, electrical outlets, thermostats, and other environmental controls in accessible locations; (III) reinforcements in bathroom walls to allow later installations of grab bars; and led persons in wheelchairs; and nd the program/activity receiving grant funding.) City of Council Bluffs 209 Pearl Street Council Bluffs, IA 51503 Check here 'if there are workplaces on file that are not identified on the attached sheets. ] hereby certify that all the information stated herein,as well as any information provided in the accompaniment herewith, is true and accurate. Warning: HUD will prosecute false claims and statements. Conviction may result in criminal and/or civil penalties. (18 U.S.C.1001,1010,1012: 31 U.S.C.3729,3802) Name of Authorized Official ;Title Thomas P. Hanafan Mayor Signature Date X June 23, 2006 form H U D50070(3/98) ref.Handbooks 7417.1,7475.13,7485.1&.3 n addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 • Attachment 5 U.S. Department of Housing and Urban Development COMMUNITY PLANNING AND DEVELOPMENT Special Attention of: Notice CPD-00-10 All Secretary's Representatives All State/Area Coordinators Issued: December 26, 2000 • All CPD Office Directors Expires: December 26, 2001 All FHEO Field Directors All CDBG Grantees SUBJECT: Accessibility for Persons with Disabilities to Non-Housing Programs funded by Community Development Block Grant Funds — Section 504 of the Rehabilitation Act of 1973, the Americans with Disabilities Act, and the Architectural Barriers Act I. Purpose The purpose of this Notice is to remind .recipients of federal funds under the Community Development Block Grant (CDBG) Program of their obligation to comply with Section 504 of the Rehabilitation Act of 1973, HUD's implementing regulations (24 CFR Part 8), the Americans with Disabilities Act, (ADA) and its implementing regulations, (28 CFR Parts 35, 36) and the Architectural Barriers Act (ABA) and its implementing regulations (24 CFR Parts 40, 41) in connection with recipients' non-housing programs. This Notice describes key compliance elements for non-housing programs and facilities assisted under the CDBG programs. However, recipients should review the specific provisions of the ADA, Section 504, the ABA and their implementing regulations in order to assure that their programs are administered in full compliance. Applicability This Notice applies to all non-housing programs and facilities assisted with Community Development Block Grant Funds (e.g., public facilities and public improvements, commercial buildings, office buildings, and other non-residential buildings) and facilities in which CDBG activities are undertaken (e.g., public services). A separate notice is being issued concerning federal accessibility requirements for housing programs assisted by recipients of CDBG and HOME program funds. II. SECTION 504 OF THE REHABILITATION ACT OF 1973 Section 504 of the Rehabilitation Act of 1973, as amended, provides "No otherwise qualified individual with a disability in the United States ...shall, solely by reason of his or her disability, be excluded from the participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving federal financial assistance..." HUD's regulations implementing the Section 504 requirements can be found at 24 CFR Part 8. Distribution: W-3-1 on, TX 713 313-2274 ective steps to remedy those policies and practices which either are discriminatory or have a discriminatory effect. Develop policies and procedures by which persons with disabilities may request a modification of a physical barrier or a rule or practice that has the effect of limiting or excluding a person with a disability from the benefits of the program. ion and hearing impairments in accordance with Section 504. assage into and within the premises within such dwellings are sufficiently wide to allow passage by disabled persons in wheelchairs; and (iii) all premises within such dwellings contain the following features of adaptive design: (I) an accessible route into and through the dwelling; (II) light switches, electrical outlets, thermostats, and other environmental controls in accessible locations; (III) reinforcements in bathroom walls to allow later installations of grab bars; and led persons in wheelchairs; and nd the program/activity receiving grant funding.) City of Council Bluffs 209 Pearl Street Council Bluffs, IA 51503 Check here 'if there are workplaces on file that are not identified on the attached sheets. ] hereby certify that all the information stated herein,as well as any information provided in the accompaniment herewith, is true and accurate. Warning: HUD will prosecute false claims and statements. Conviction may result in criminal and/or civil penalties. (18 U.S.C.1001,1010,1012: 31 U.S.C.3729,3802) Name of Authorized Official ;Title Thomas P. Hanafan Mayor Signature Date X June 23, 2006 form H U D50070(3/98) ref.Handbooks 7417.1,7475.13,7485.1&.3 n addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 2 • Part 8 requires that recipients ensure that their programs are accessible to and usable by persons with disabilities. Part 8 also prohibits recipients from employment discrimination based upon disability. The Section 504 regulations define "recipient" as any state or its political subdivision, any instrumentality of a state or its political subdivision, any public or private agency, institution organization, or other entity or any person to which federal financial assistance is extended for any program or activity directly or through another recipient, including any successor, assignee, or transferee of a recipient, but excluding the ultimate beneficiary of the assistance. (24 CFR §8.3) For the purposes of Part 8, recipients include states and localities that are grantees and sub-grantees under the CDBG program, their sub-recipients, community-based development organizations, businesses, and any other entity that receives CDBG assistance, but not low- and moderate-income beneficiaries of the program. CDBG grantees are responsible for establishing policies and practices that they will use to monitor compliance of all covered programs, activities, or work performed by their sub-recipients, contractors, sub-contractors, management agents, etc. Non-housing Programs New construction — Part 8 requires that new non-housing facilities constructed by recipients of federal financial assistance shall be designed and constructed to be readily accessible to and usable by persons with disabilities. (24 CFR §8.21(a)) Alterations to facilities — Part 8 requires to the maximum extent feasible, that recipients make alterations to existing non-housing facilities to ensure that such facilities are readily accessible to and usable by individuals with disabilities. An element of an existing non-housing facility need not be made accessible, if doing so would impose undue financial and administrative burdens on the operation of the recipients program or activity. (24 CFR §8.21(b)) Existing non-housing facilities — A recipient is obligated to operate each non-housing program or activities so that, when viewed in its entirety, the program or activity is readily accessible to and usable by persons with disabilities. (24 CFR §8.21(c)) Recipients are not necessarily required to make each of their existing non-housing facilities accessible to and usable by persons with disabilities if, when viewed in its entirety, the program or activity is readily accessible to and usable by persons with disabilities. 24 CFR §8.21(c)(1) Recipients are also not required to take any action that they can demonstrate would result in a fundamental alteration in the nature of its program or activity or cause any undue administrative and financial burden. However, recipients are still required to take other actions that would not result in such alterations, but would nevertheless ensure that persons with disabilities receive the benefits and services of the program. (24 CFR §8.21(c)(iii)) Historic Preservation — Recipients are not required to take any actions that would result in a substantial impairment of significant historic features of an historic property. However, in such cases where a physical alteration is not required, the recipient is still obligated to use alternative means to achieve program accessibility, including using audio-visual materials and devices to depict those portions of an historic property that cannot be made accessible, assigning persons to guide persons with disabilities into or through portions of historic properties that cannot be made accessible, or otherwise adopting other innovative methods so that individuals with disabilities can still benefit from the program. (24 CFR §8.21(c)(ii)) n file that are not identified on the attached sheets. ] hereby certify that all the information stated herein,as well as any information provided in the accompaniment herewith, is true and accurate. Warning: HUD will prosecute false claims and statements. Conviction may result in criminal and/or civil penalties. (18 U.S.C.1001,1010,1012: 31 U.S.C.3729,3802) Name of Authorized Official ;Title Thomas P. Hanafan Mayor Signature Date X June 23, 2006 form H U D50070(3/98) ref.Handbooks 7417.1,7475.13,7485.1&.3 n addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 • 3 Accessibility Standards Design, construction, or alteration of facilities in conformance with the Uniform Federal Accessibility Standards (UFAS) is deemed to comply with the accessibility requirements for non-housing facilities. Recipients may depart from particular technical and scooping requirements of UFAS where substantially equivalent or greater accessibility and usability is provided. (24 CFR §8.32) For copies of UFAS, contact the HUD Distribution Center at 1-800-767-7468; deaf, hard of hearing, or speech- impaired persons may access this number via TTY by calling the Federal Information Relay Service at 1-800-877-8339. Where a property is subject to more than one law or accessibility standard, it is necessary to comply with all applicable requirements. In some cases, it may be possible to do this by complying with the stricter requirement; however, it is also important to ensure that meeting the stricter requirement also meets both the scooping and technical requirements of overlapping laws or standards. Employment Section 504 also prohibits discrimination based upon disability in employment. See 24 CFR Part 8, Subpart B. Section 504 Self Evaluations The Section 504 regulations required recipients of federal financial assistance to conduct a self-evaluation of their policies and practices to determine if they were consistent with the law's requirements. This self-evaluation was to have been completed no later than July 11, 1989. Title II of the ADA imposed this requirement on all covered public entities. The ADA regulations required that ADA self evaluations be completed by January 26, 1993, although those public entities that had already performed a Section 504 self evaluation were only required to perform a self-evaluation on those policies and practices that had not been included in the Section 504 review. The regulatory deadlines are long past. However, self-evaluation continues to be an excellent management tool for ensuring that a recipient's current policies and procedures. comply with the requirements of Section 504 and the ADA. Involving persons with disabilities in the self-evaluation process is very beneficial. This will assure the most meaningful result for both the recipient and for persons with disabilities who participate in the recipients programs and activities. It is important to involve persons and/or organizations representing persons with disabilities, and agencies or other experts who work regularly with accessibility standards. Important steps in conducting a self-evaluation and implementing its results include the following: • evaluate current policies and practices and analyze them to determine if they adversely affect the full participation of individuals with disabilities in its programs, activities and services. Be mindful of the fact that a policy or practice may appear neutral on its face, but may have a discriminatory effect on individuals with disabilities. nts are not required to take any actions that would result in a substantial impairment of significant historic features of an historic property. However, in such cases where a physical alteration is not required, the recipient is still obligated to use alternative means to achieve program accessibility, including using audio-visual materials and devices to depict those portions of an historic property that cannot be made accessible, assigning persons to guide persons with disabilities into or through portions of historic properties that cannot be made accessible, or otherwise adopting other innovative methods so that individuals with disabilities can still benefit from the program. (24 CFR §8.21(c)(ii)) n file that are not identified on the attached sheets. ] hereby certify that all the information stated herein,as well as any information provided in the accompaniment herewith, is true and accurate. Warning: HUD will prosecute false claims and statements. Conviction may result in criminal and/or civil penalties. (18 U.S.C.1001,1010,1012: 31 U.S.C.3729,3802) Name of Authorized Official ;Title Thomas P. Hanafan Mayor Signature Date X June 23, 2006 form H U D50070(3/98) ref.Handbooks 7417.1,7475.13,7485.1&.3 n addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 4 • modify any policies and practices that are not or may not be in compliance with Section 504 or Title II and Title III of the ADA regulations. (See 24 CFR Part 8 and 28 CFR Parts 35, 36) • take appropriate corrective steps to remedy those policies and practices which either are discriminatory or have a discriminatory effect. Develop policies and procedures by which persons with disabilities may request a modification of a physical barrier or a rule or practice that has the effect of limiting or excluding a person with a disability from the benefits of the program. • document the self-evaluation process and activities. The Department recommends that all recipients keep the self-evaluation file for at least three years, including records of the individuals and organizations consulted, areas examined and problems identified, and document modifications and remedial steps, as an aid to meeting the requirements at 24 CFR Part 8.55. The Department also recommends that recipients periodically update the self-evaluation, particularly, for example, if there have been changes in the programs and services of the agencies. In addition, public entities covered by Title II of the ADA should review any policies and practices that were not included in their Section 504 self-evaluation and should modify discriminatory policies and practices accordingly. III. The Americans With Disabilities Act of 1990 The Americans With Disabilities Act of 1990 (ADA) guarantees equal opportunities for persons with disabilities in employment, public accommodations, transportation, state and local government services, and telecommunications. Unlike Section 504, which applies only to programs and activities receiving federal financial assistance, the ADA applies even if no federal financial assistance is given. The US Department of Justice enforces Titles I, II and III of the ADA, although the Equal Employment Opportunity Commission investigates administrative complaints involving Title I. Title I prohibits discrimination in employment based upon disability. The regulations implementing Title I are found at 29 CFR Part 1630. The Equal Employment Opportunity Commission (EEOC) offers technical assistance on the ADA provisions applying to employment. These can be obtained at the EEOC web site www.eeoc.gov, or by calling 800-669-3362 (voice) and 800-800-3302 (TTY). Title II prohibits discrimination based on disability by state and local governments. Title II essentially extended the Section 504 requirements to services, programs, and activities provided by states, local governments and other entities that do not receive federal financial assistance from HUD or another federal agency. CDBG grantees are covered by both Title II and Section 504. The Department of Justice Title II regulations are found at 28 CFR Part 35. Title II also requires that facilities that are newly constructed or altered, by, on behalf of, or for use of a public entity, be designed and constructed in a manner that makes the facility ment of significant historic features of an historic property. However, in such cases where a physical alteration is not required, the recipient is still obligated to use alternative means to achieve program accessibility, including using audio-visual materials and devices to depict those portions of an historic property that cannot be made accessible, assigning persons to guide persons with disabilities into or through portions of historic properties that cannot be made accessible, or otherwise adopting other innovative methods so that individuals with disabilities can still benefit from the program. (24 CFR §8.21(c)(ii)) n file that are not identified on the attached sheets. ] hereby certify that all the information stated herein,as well as any information provided in the accompaniment herewith, is true and accurate. Warning: HUD will prosecute false claims and statements. Conviction may result in criminal and/or civil penalties. (18 U.S.C.1001,1010,1012: 31 U.S.C.3729,3802) Name of Authorized Official ;Title Thomas P. Hanafan Mayor Signature Date X June 23, 2006 form H U D50070(3/98) ref.Handbooks 7417.1,7475.13,7485.1&.3 n addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 5 readily accessible to and usable by persons with disabilities. (28 CFR §35.151(a) & (b)) Facilities constructed or altered in conformance with either UFAS or the ADA Accessibility Guidelines for Buildings and Facilities (ADAAG)(Appendix A to 28 CFR Part 36)shall be deemed to comply with the Title II Accessibility requirements, except that the elevator exemption contained at Section 4.1.3(5)and Section 4.1.6(1)(j)of ADAAG shall not apply. (28 CFR §35.151(c)) Title II specifically requires that all newly constructed or altered streets, roads and highways and pedestrian walkways must contain curb ramps or other sloped areas at any intersection having curbs or other barriers to entry from a street level or pedestrian walkway and that all newly constructed or altered street level pedestrian walkways must have curb ramps at intersections. Newly constructed or altered street level pedestrian walkways must contain curb ramps or other sloped areas at intersections to streets, roads or highways. (28 CFR §35.151(e)) The Title II regulations required that by January 26, 1993, public entities (state or local governments) conduct a self-evaluation to review their current policies and practices to identify and correct any requirements that were not consistent with the regulation. Public entities that employed more than 50 persons were required to maintain their self-evaluation of those on file and make it available for three years. If a public entity had already completed a self-evaluation under Section 504 of the Rehabilitation Act, then the ADA only required it to do a self-evaluation of those policies and practices that were not included in the previous self-evaluation. (28 CFR §35.105) The Department of Justice offers technical assistance on Title II through its web page at www.usdoj.gov/crt/ada/taprog.htm and through its ADA Information Line at 202 514-0301 (voice and 202 514-0383 (TTY), The Department of Justice's technical assistance materials include among others, the Title II Technical Assistance Manual with Yearly Supplements, the ADA Guide for Small Towns, and an ADA Guide entitled The ADA and City Governments: Common Problems. Title III prohibits discrimination based upon disability in places of public accommodation (businesses and non-profit agencies that serve the public) and "commercial" facilities (other businesses). It applies regardless of whether the public accommodation or commercial facilityis operated bya private or public entity, ora for-profit or not-for-profit p y, by p business. The Department of Justice Title III regulations are found at 28 CFR Part 36. The Department of Justice also offers technical assistance concerning Title III through the web page cited above and the ADA Hotline cited above. Justice also offers technical assistance concerning Title III through the web page cited above and the ADA Hotline cited above. IV. The Architectural Barriers Act of 1968 The Architectural Barriers Act of 1968 (ABA)(42 USC 4151-4157) requires that certain buildings financed with federal funds must be designed, constructed or altered in accordance with standards that ensure accessibility for persons with physical disabilities. The ABA covers any building or facility financed in whole or in part with federal funds, except privately-owned residential structures. Covered buildings and facilities designed, constructed or altered with CDBG funds are subject to the ABA and must comply with the Uniform Federal Accessibility Standards (UFAS). (24 CFR 570.614) In practice, buildings built to meet the requirements of Section 504 and the ADA will conform to the requirements of the ABA. V. HUD Resources Available Concerning Section 504 tified on the attached sheets. ] hereby certify that all the information stated herein,as well as any information provided in the accompaniment herewith, is true and accurate. Warning: HUD will prosecute false claims and statements. Conviction may result in criminal and/or civil penalties. (18 U.S.C.1001,1010,1012: 31 U.S.C.3729,3802) Name of Authorized Official ;Title Thomas P. Hanafan Mayor Signature Date X June 23, 2006 form H U D50070(3/98) ref.Handbooks 7417.1,7475.13,7485.1&.3 n addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 6 Further information concerning compliance with Section 504 may be obtained through the HUD web page (http://www.hud.gov/fhe/504/sect504.html). Additional assistance and information may be obtained by contacting the local Department of Housing and Urban Development Office of Fair Housing and Equal Opportunity field office. Below is a list of the phone numbers for these offices. CPD FHEO Boston, MA 617 565-5345 617 565-5310 Hartford, CT 806 240-4800 x3059 860 240-4800 New York,NY 212 264-0771 x 3422 212 264-1290 Buffalo, NY 716 551-5755 x 5800 716 551-5755 Newark, NJ 973 622-7900 x 3300 973-622-7900 Philadelphia, PA 215 656-0624 x 3201 215 656-0661 Pittsburgh, PA 412 644-2999 412 355-3167 Baltimore, MD 410 962-2520 x 3071 410 962-2520 Richmond, VA 804 278-4503 x 3229 804 278-4504 Washington, DC 202 275-0994 x 3163 202 275-0848 Atlanta, GA 404 331-5001 x 2449 404 331-1798 Birmingham, AL 205 290-7630 x 1027 205 290-7630 South Florida 305 536-4431 x 2223 305 536-4479 Jacksonville, FL 904 232-1777 x 2136 904-232-1777 San Juan, PR 787 766-5400 x 2005 787 766-5400 Louisville, KY 502 582-6163 x 214 502 582-6163 x 230 Jackson, MS 601 965-4700 x 3140 601 965-4700 x 2435 'Knoxville, TN 865 545-4391 x 121 865-545-4379 Greensboro, NC 336 547-4005 336-547-4050 Columbia, SC 8030765-5564 803-765-5936 Chicago, IL 312-353-1696 x 2702 312-353-7776 Minneapolis, MN 612 370-3019 x 2107 612 370-3185 Detroit, MI 313 226-7908 x 8055 313 226-6280 Milwaukee,WI 414 297-3214 x 8100 414 297-3214 Columbus, OH 614 469-5737 x 8240 614 469-5737 x 8170 Indianapolis, IN 317 226-6303 x 6790 317 226-7654 Little Rock,AR 501 324-6375 501 324-6296 Oklahoma City, OK 405 553-7569 405 553-7426 Kansas City, KS 913 551-5485 913-551-5834 Omaha, NE 402 492-3181 402 492-3109 St. Louis, MO 314 539-6524 314 539-6327 New Orleans, LA 504 589-7212 x 3047 504 589-7219 Fort Worth, TX 817 978-5934 x 5951 817-978-5870 San Antonio, TX 210 475-6820 x 2293 210 475-6885 Albuquerque, NM 505 346-7271 x 7361 505 346-7327 Denver, CO 303 672-5414 x 1326 303 672-5437 San Francisco, CA 415 436-6597 415 436-6569 Los Angeles, CA 213 894-8000 x 3300 213 894-8000 x 3400 Honolulu, HI 808 522-8180 x 264 808 522-8180 Phoenix,AZ 602 379-4754 602 379-6699 x 5261 Seattle, WA 206 220-5150 x 3606 206 220-5170 Portland, OR 503 326-7018 503 326-3349 L le III through the web page cited above and the ADA Hotline cited above. IV. The Architectural Barriers Act of 1968 The Architectural Barriers Act of 1968 (ABA)(42 USC 4151-4157) requires that certain buildings financed with federal funds must be designed, constructed or altered in accordance with standards that ensure accessibility for persons with physical disabilities. The ABA covers any building or facility financed in whole or in part with federal funds, except privately-owned residential structures. Covered buildings and facilities designed, constructed or altered with CDBG funds are subject to the ABA and must comply with the Uniform Federal Accessibility Standards (UFAS). (24 CFR 570.614) In practice, buildings built to meet the requirements of Section 504 and the ADA will conform to the requirements of the ABA. V. HUD Resources Available Concerning Section 504 tified on the attached sheets. ] hereby certify that all the information stated herein,as well as any information provided in the accompaniment herewith, is true and accurate. Warning: HUD will prosecute false claims and statements. Conviction may result in criminal and/or civil penalties. (18 U.S.C.1001,1010,1012: 31 U.S.C.3729,3802) Name of Authorized Official ;Title Thomas P. Hanafan Mayor Signature Date X June 23, 2006 form H U D50070(3/98) ref.Handbooks 7417.1,7475.13,7485.1&.3 n addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 7 Manchester,NH 603 666-7640 x 7633 Anchorage, AK 907 271-3669 Houston, TX 713 313-2274 Distribution W-3-1 Special Attention of: Notice CPD-02-03 All Secretary's Representatives All State/Area Coordinators Issued: May 2, 2002 All CPD Office Directors Expires: December 26, 2003 All HOME Coordinators All HOME Participating Jurisdictions All CDBG Grantees All FHEO Field Directors SUBJECT: Accessibility Notice: Section 504 of the Rehabilitation Act of 1973 and The Fair Housing Act and their applicability to housing programs funded by the HOME Investment Partnerships Program and the Community Development Block Grant Program This Notice extends the provisions of Notice CPD 00-09 (originally issued December 26, 2000) through December 26, 2003) Distribution: W-3-1 6 ND ATTACHMENT P:\PLN3\13639pjm.doc • > \ 2 \ c / ƒ / . t # co.,2 .0 o a N } w U 2 2 3 - / m m m { ' I a r . 2 7 2 nt - . § Q � "0 . •G & + 0 / & 2 3 § S % w c . U / / ? 00 k \ \ 64 p 64 2 ° = m © O 6 . = . ad m \ • \ 0 O M / 2 2 c . ® _ e 11.1 • . al . w VI CO . . 3 . ■ . 2 ' . % / ® ./ ./ ® a 5 A 7 - / \ \ � 2 E ) / ± { / 7 . • 2 e / 2 \ . t u > \ d \ / : G � « a . 6 * / \ u » e / � ° \ $ ~ ] G / . Q } c t « - 4 / \ 2 % / o - a „ .§ ® 2 7 & 2 a E ° ® • . ti x 2 •= § / \ \ _ •.\ ° 2 g / > .- ® \ % \ 5 \ 2 \ Q E % 8 Q a g / • 7::4 f / \o / \ E \ ( .o o 0 \ § } \ \ \ / / \ $ Q « Columbia, SC 8030765-5564 803-765-5936 Chicago, IL 312-353-1696 x 2702 312-353-7776 Minneapolis, MN 612 370-3019 x 2107 612 370-3185 Detroit, MI 313 226-7908 x 8055 313 226-6280 Milwaukee,WI 414 297-3214 x 8100 414 297-3214 Columbus, OH 614 469-5737 x 8240 614 469-5737 x 8170 Indianapolis, IN 317 226-6303 x 6790 317 226-7654 Little Rock,AR 501 324-6375 501 324-6296 Oklahoma City, OK 405 553-7569 405 553-7426 Kansas City, KS 913 551-5485 913-551-5834 Omaha, NE 402 492-3181 402 492-3109 St. Louis, MO 314 539-6524 314 539-6327 New Orleans, LA 504 589-7212 x 3047 504 589-7219 Fort Worth, TX 817 978-5934 x 5951 817-978-5870 San Antonio, TX 210 475-6820 x 2293 210 475-6885 Albuquerque, NM 505 346-7271 x 7361 505 346-7327 Denver, CO 303 672-5414 x 1326 303 672-5437 San Francisco, CA 415 436-6597 415 436-6569 Los Angeles, CA 213 894-8000 x 3300 213 894-8000 x 3400 Honolulu, HI 808 522-8180 x 264 808 522-8180 Phoenix,AZ 602 379-4754 602 379-6699 x 5261 Seattle, WA 206 220-5150 x 3606 206 220-5170 Portland, OR 503 326-7018 503 326-3349 L le III through the web page cited above and the ADA Hotline cited above. IV. The Architectural Barriers Act of 1968 The Architectural Barriers Act of 1968 (ABA)(42 USC 4151-4157) requires that certain buildings financed with federal funds must be designed, constructed or altered in accordance with standards that ensure accessibility for persons with physical disabilities. The ABA covers any building or facility financed in whole or in part with federal funds, except privately-owned residential structures. Covered buildings and facilities designed, constructed or altered with CDBG funds are subject to the ABA and must comply with the Uniform Federal Accessibility Standards (UFAS). (24 CFR 570.614) In practice, buildings built to meet the requirements of Section 504 and the ADA will conform to the requirements of the ABA. V. HUD Resources Available Concerning Section 504 tified on the attached sheets. ] hereby certify that all the information stated herein,as well as any information provided in the accompaniment herewith, is true and accurate. Warning: HUD will prosecute false claims and statements. Conviction may result in criminal and/or civil penalties. (18 U.S.C.1001,1010,1012: 31 U.S.C.3729,3802) Name of Authorized Official ;Title Thomas P. Hanafan Mayor Signature Date X June 23, 2006 form H U D50070(3/98) ref.Handbooks 7417.1,7475.13,7485.1&.3 n addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 C-25A CITY OF OMAHA LEGISLATIVE CHAMBER Omaha,Nebraska RESOLVED BY THE CITY COUNCIL OF THE CITY OF OMAHA: WHEREAS, under Title II of the National Affordable Housing Act of 1990, the City of Omaha annually receives a HOME Investment Partnerships Program entitlement for the purpose of providing affordable housing opportunities for low income households; and, WHEREAS, on July 14, 2001, by Resolution No. 1874, the Omaha City Council approved a Home Investment Partnerships Program Consortium Cooperation Agreement (Cooperation Agreement) between the City of Omaha and the City of Council Bluffs for the purposes of receiving an increased HOME Fund allocation from the U.S. Department of Housing and Urban Development and administering the HOME Program as a single grantee; and, WHEREAS, the HOME Consortium Cooperation Agreement is in full force and effect until September 20, 2012; and, WHEREAS, the Consortium Cooperation Agreement provided for the transfer of a portion of the HOME Funds received by the City of Omaha to the City of Council Bluffs, less ten percent to be used by the City of Omaha for administrative purposes; and, WHEREAS, the Mayor, City of Omaha, recommended various projects in the FY 2005 Consolidated Submission for Community Planning and Development Programs (Consolidated Plan), including the City of Council Bluffs, Iowa, Housing Infill Program and the Multi-Family Rental Projects; and, WHEREAS, the City Council, City of Omaha, approved the 2005 Consolidated Plan on November 2, 2004, by Resolution No. 1268, as amended by City Council Resolution No. 1147 on October 4, 2005, respectively; and, WHEREAS, the Consolidated Plan authorizes the City of Council Bluffs to provide partial financing for land acquisition and/or new construction of 6 units within one (1) or two (2) multiple-family housing projects for qualified low and moderate income households whose annual household incomes are 80% and below the Median Income By Family Size at locations to be determined at a later date. The rental property assistance will be applied towards land acquisition and/or construction-related costs; and, By Councilmember Adopted City Clerk Approved Mayor -6820 x 2293 210 475-6885 Albuquerque, NM 505 346-7271 x 7361 505 346-7327 Denver, CO 303 672-5414 x 1326 303 672-5437 San Francisco, CA 415 436-6597 415 436-6569 Los Angeles, CA 213 894-8000 x 3300 213 894-8000 x 3400 Honolulu, HI 808 522-8180 x 264 808 522-8180 Phoenix,AZ 602 379-4754 602 379-6699 x 5261 Seattle, WA 206 220-5150 x 3606 206 220-5170 Portland, OR 503 326-7018 503 326-3349 L le III through the web page cited above and the ADA Hotline cited above. IV. The Architectural Barriers Act of 1968 The Architectural Barriers Act of 1968 (ABA)(42 USC 4151-4157) requires that certain buildings financed with federal funds must be designed, constructed or altered in accordance with standards that ensure accessibility for persons with physical disabilities. The ABA covers any building or facility financed in whole or in part with federal funds, except privately-owned residential structures. Covered buildings and facilities designed, constructed or altered with CDBG funds are subject to the ABA and must comply with the Uniform Federal Accessibility Standards (UFAS). (24 CFR 570.614) In practice, buildings built to meet the requirements of Section 504 and the ADA will conform to the requirements of the ABA. V. HUD Resources Available Concerning Section 504 tified on the attached sheets. ] hereby certify that all the information stated herein,as well as any information provided in the accompaniment herewith, is true and accurate. Warning: HUD will prosecute false claims and statements. Conviction may result in criminal and/or civil penalties. (18 U.S.C.1001,1010,1012: 31 U.S.C.3729,3802) Name of Authorized Official ;Title Thomas P. Hanafan Mayor Signature Date X June 23, 2006 form H U D50070(3/98) ref.Handbooks 7417.1,7475.13,7485.1&.3 n addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 C-25A CITY OF OMAHA LEGISLATIVE CHAMBER Omaha,Nebraska PAGE -2- - ' r WHEREAS, the City of Council Bluffs has indicated the total estimated cost for FY 2005 HOME activities at $172,894.00 and will be funded with $172,894.00 from FY 2005 HOME funds; and, WHEREAS, it is in the best interest of the City of Omaha and the residents thereof to enter into an Agreement with the City of Council Bluffs to make affordable housing opportunities available to low and moderate income residents of Council Bluffs, Iowa. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF OMAHA; THAT, as recommended by the Mayor, the attached Inter-Local HOME Agreement between the City of Omaha and the City of Council Bluffs, 209 Pearl Street, Council Bluffs, Iowa 51503, authorizing the City of Omaha to provide to the City of Council Bluffs a total of $172,894.00 in FY 2005 HOME Program Funds for acquisition of land and/or new construction of 6 units within one (1) or two (2) multiple-family housing projects for qualified low and moderate income households, whose annual household incomes are 80% and below of the Median Income By Family Size at locations to be determined at a later date within the City of Council Bluffs, is hereby approved. Funds in the amount of$172,894.00 shall be payable from the FY 2005 HOME Investment Partnerships Housing Development Program, Fund No. 12179, Organization No. 128042. P:\PLN3\13638pjm.doc APPROVED AS TO FORM: /T17 ,cic S-- 7/2 7 0 6 �• CITY ATTORNEY D TE By Councilmember Adopted `AUG 1 5 2006"6‘014 11 City Clerk Approved�l' CP f� Mayor the City of Council Bluffs to provide partial financing for land acquisition and/or new construction of 6 units within one (1) or two (2) multiple-family housing projects for qualified low and moderate income households whose annual household incomes are 80% and below the Median Income By Family Size at locations to be determined at a later date. The rental property assistance will be applied towards land acquisition and/or construction-related costs; and, By Councilmember Adopted City Clerk Approved Mayor -6820 x 2293 210 475-6885 Albuquerque, NM 505 346-7271 x 7361 505 346-7327 Denver, CO 303 672-5414 x 1326 303 672-5437 San Francisco, CA 415 436-6597 415 436-6569 Los Angeles, CA 213 894-8000 x 3300 213 894-8000 x 3400 Honolulu, HI 808 522-8180 x 264 808 522-8180 Phoenix,AZ 602 379-4754 602 379-6699 x 5261 Seattle, WA 206 220-5150 x 3606 206 220-5170 Portland, OR 503 326-7018 503 326-3349 L le III through the web page cited above and the ADA Hotline cited above. IV. The Architectural Barriers Act of 1968 The Architectural Barriers Act of 1968 (ABA)(42 USC 4151-4157) requires that certain buildings financed with federal funds must be designed, constructed or altered in accordance with standards that ensure accessibility for persons with physical disabilities. The ABA covers any building or facility financed in whole or in part with federal funds, except privately-owned residential structures. Covered buildings and facilities designed, constructed or altered with CDBG funds are subject to the ABA and must comply with the Uniform Federal Accessibility Standards (UFAS). (24 CFR 570.614) In practice, buildings built to meet the requirements of Section 504 and the ADA will conform to the requirements of the ABA. V. HUD Resources Available Concerning Section 504 tified on the attached sheets. ] hereby certify that all the information stated herein,as well as any information provided in the accompaniment herewith, is true and accurate. Warning: HUD will prosecute false claims and statements. Conviction may result in criminal and/or civil penalties. (18 U.S.C.1001,1010,1012: 31 U.S.C.3729,3802) Name of Authorized Official ;Title Thomas P. Hanafan Mayor Signature Date X June 23, 2006 form H U D50070(3/98) ref.Handbooks 7417.1,7475.13,7485.1&.3 n addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 4 yee 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 http://www.whitehouse.gov/omb/circulars/al 10/al 1 0.html 6/23/2006 irculars/a110/al 1 0.html 6/23/2006 i '-o ell b 'y' ' n � q4 5 O-)-F4 � P) x 0:1 Q td n F; � c) DO CD O .bq .+. Pa 0 O� ^ cn O O. ~' ••• '~' '* 00 0 C = o � N � ,• ea. A, � �y � Q., o� `C r45 �. C ° " = ON � CD `C P "n .- P 69 � WOO On S:-, C 0 v' •J 0 A� 0 = c0 .N C, IIiiI ! 1jIi: 1Ui CD f oo V n � o o : o `� C� nC� nCD o n_ d .p aQ r' r 6 N CD Q' �' t. ° ° r N n N N ¢ O .� ��' O O n. O n. O" cr T .. . CD ."'S. � CD P 0•L CD UQ CD )--h )--. '0-*+ ,••' CD JG,A \ 4. r r 4 y issued December 26, 2000) through December 26, 2003) Distribution: W-3-1 6 ND ATTACHMENT P:\PLN3\13639pjm.doc